Bill Text: IL SB0689 | 2019-2020 | 101st General Assembly | Enrolled
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Use Tax Act and the Service Use Tax Act. Contains provisions concerning marketplace facilitators. Extends the Manufacturing Machinery and Equipment Exemption to production related tangible personal property. Provides that the term "production related tangible personal property" includes certain supplies and consumables used in a manufacturing facility. Amends the Illinois Income Tax Act. Creates a credit for taxpayers who have been awarded a data center certificate of exemption. Provides that the amount of the income tax credit shall be 20% of the wages paid during the taxable year to a full-time or part-time employee of a construction contractor employed by a certified data center. Amends the Illinois Income Tax Act. Creates a deduction for trusts and estates for certain excess business losses. Creates an addition modification for corporations for certain foreign derived income. Amends the Illinois Public Aid Code. Imposes a managed care organization provider assessment. Amends the Illinois Public Aid Code to create a managed care organization provider assessment. Extends the amnesty period under the Tax Delinquency Amnesty Act and the Franchise Tax and License Fee Amnesty Act of 2007. Amends the Illinois Enterprise Zone Act. Creates a High Impact Business construction jobs credit and an Enterprise Zone construction jobs credit against the taxpayer's Illinois income taxes based on the incremental income tax attributable to laborers or workers employed at certain construction sites located in Enterprise Zones. Amends the Economic Development for a Growing Economy Tax Credit Act. Creates a New Construction EDGE Credit based on the incremental income tax attributable to laborers or workers employed at construction sites associated with EDGE projects. Amends the River Edge Redevelopment Zone Act. Creates a River Edge construction jobs credit based on the incremental income tax attributable to laborers or workers employed at certain construction sites in a River Edge Redevelopment Zone. Requires contractors and subcontractors associated with projects that receive credits under the amendatory Act to file certified payroll information with the Department of Labor and the Department of Commerce and Economic Opportunity. Amends the Business Corporation Act of 1983. Phases out certain franchise taxes. Effective immediately.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Passed) 2019-06-05 - Public Act . . . . . . . . . 101-0009 [SB0689 Detail]
Download: Illinois-2019-SB0689-Enrolled.html
Bill Title: Amends the Use Tax Act and the Service Use Tax Act. Contains provisions concerning marketplace facilitators. Extends the Manufacturing Machinery and Equipment Exemption to production related tangible personal property. Provides that the term "production related tangible personal property" includes certain supplies and consumables used in a manufacturing facility. Amends the Illinois Income Tax Act. Creates a credit for taxpayers who have been awarded a data center certificate of exemption. Provides that the amount of the income tax credit shall be 20% of the wages paid during the taxable year to a full-time or part-time employee of a construction contractor employed by a certified data center. Amends the Illinois Income Tax Act. Creates a deduction for trusts and estates for certain excess business losses. Creates an addition modification for corporations for certain foreign derived income. Amends the Illinois Public Aid Code. Imposes a managed care organization provider assessment. Amends the Illinois Public Aid Code to create a managed care organization provider assessment. Extends the amnesty period under the Tax Delinquency Amnesty Act and the Franchise Tax and License Fee Amnesty Act of 2007. Amends the Illinois Enterprise Zone Act. Creates a High Impact Business construction jobs credit and an Enterprise Zone construction jobs credit against the taxpayer's Illinois income taxes based on the incremental income tax attributable to laborers or workers employed at certain construction sites located in Enterprise Zones. Amends the Economic Development for a Growing Economy Tax Credit Act. Creates a New Construction EDGE Credit based on the incremental income tax attributable to laborers or workers employed at construction sites associated with EDGE projects. Amends the River Edge Redevelopment Zone Act. Creates a River Edge construction jobs credit based on the incremental income tax attributable to laborers or workers employed at certain construction sites in a River Edge Redevelopment Zone. Requires contractors and subcontractors associated with projects that receive credits under the amendatory Act to file certified payroll information with the Department of Labor and the Department of Commerce and Economic Opportunity. Amends the Business Corporation Act of 1983. Phases out certain franchise taxes. Effective immediately.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Passed) 2019-06-05 - Public Act . . . . . . . . . 101-0009 [SB0689 Detail]
Download: Illinois-2019-SB0689-Enrolled.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | ARTICLE 10. AMENDATORY PROVISIONS | ||||||
5 | Section 10-3. The State Finance Act is amended by changing | ||||||
6 | Section 6z-81 as follows:
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7 | (30 ILCS 105/6z-81) | ||||||
8 | Sec. 6z-81. Healthcare Provider Relief Fund. | ||||||
9 | (a) There is created in the State treasury a special fund | ||||||
10 | to be known as the Healthcare Provider Relief Fund. | ||||||
11 | (b) The Fund is created for the purpose of receiving and | ||||||
12 | disbursing moneys in accordance with this Section. | ||||||
13 | Disbursements from the Fund shall be made only as follows: | ||||||
14 | (1) Subject to appropriation, for payment by the | ||||||
15 | Department of Healthcare and
Family Services or by the | ||||||
16 | Department of Human Services of medical bills and related | ||||||
17 | expenses, including administrative expenses, for which the | ||||||
18 | State is responsible under Titles XIX and XXI of the Social | ||||||
19 | Security Act, the Illinois Public Aid Code, the Children's | ||||||
20 | Health Insurance Program Act, the Covering ALL KIDS Health | ||||||
21 | Insurance Act, and the Long Term Acute Care Hospital | ||||||
22 | Quality Improvement Transfer Program Act. |
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1 | (2) For repayment of funds borrowed from other State
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2 | funds or from outside sources, including interest thereon. | ||||||
3 | (3) For State fiscal years 2017, 2018, and 2019, for | ||||||
4 | making payments to the human poison control center pursuant | ||||||
5 | to Section 12-4.105 of the Illinois Public Aid Code. | ||||||
6 | (c) The Fund shall consist of the following: | ||||||
7 | (1) Moneys received by the State from short-term
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8 | borrowing pursuant to the Short Term Borrowing Act on or | ||||||
9 | after the effective date of Public Act 96-820. | ||||||
10 | (2) All federal matching funds received by the
Illinois | ||||||
11 | Department of Healthcare and Family Services as a result of | ||||||
12 | expenditures made by the Department that are attributable | ||||||
13 | to moneys deposited in the Fund. | ||||||
14 | (3) All federal matching funds received by the
Illinois | ||||||
15 | Department of Healthcare and Family Services as a result of | ||||||
16 | federal approval of Title XIX State plan amendment | ||||||
17 | transmittal number 07-09. | ||||||
18 | (3.5) Proceeds from the assessment authorized under | ||||||
19 | Article V-H of the Public Aid Code. | ||||||
20 | (4) All other moneys received for the Fund from any
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21 | other source, including interest earned thereon. | ||||||
22 | (5) All federal matching funds received by the
Illinois | ||||||
23 | Department of Healthcare and Family Services as a result of | ||||||
24 | expenditures made by the Department for Medical Assistance | ||||||
25 | from the General Revenue Fund, the Tobacco Settlement | ||||||
26 | Recovery Fund, the Long-Term Care Provider Fund, and the |
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1 | Drug Rebate Fund related to individuals eligible for | ||||||
2 | medical assistance pursuant to the Patient Protection and | ||||||
3 | Affordable Care Act (P.L. 111-148) and Section 5-2 of the | ||||||
4 | Illinois Public Aid Code. | ||||||
5 | (d) In addition to any other transfers that may be provided | ||||||
6 | for by law, on the effective date of Public Act 97-44, or as | ||||||
7 | soon thereafter as practical, the State Comptroller shall | ||||||
8 | direct and the State Treasurer shall transfer the sum of | ||||||
9 | $365,000,000 from the General Revenue Fund into the Healthcare | ||||||
10 | Provider Relief Fund.
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11 | (e) In addition to any other transfers that may be provided | ||||||
12 | for by law, on July 1, 2011, or as soon thereafter as | ||||||
13 | practical, the State Comptroller shall direct and the State | ||||||
14 | Treasurer shall transfer the sum of $160,000,000 from the | ||||||
15 | General Revenue Fund to the Healthcare Provider Relief Fund. | ||||||
16 | (f) Notwithstanding any other State law to the contrary, | ||||||
17 | and in addition to any other transfers that may be provided for | ||||||
18 | by law, the State Comptroller shall order transferred and the | ||||||
19 | State Treasurer shall transfer $500,000,000 to the Healthcare | ||||||
20 | Provider Relief Fund from the General Revenue Fund in equal | ||||||
21 | monthly installments of $100,000,000, with the first transfer | ||||||
22 | to be made on July 1, 2012, or as soon thereafter as practical, | ||||||
23 | and with each of the remaining transfers to be made on August | ||||||
24 | 1, 2012, September 1, 2012, October 1, 2012, and November 1, | ||||||
25 | 2012, or as soon thereafter as practical. This transfer may | ||||||
26 | assist the Department of Healthcare and Family Services in |
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1 | improving Medical Assistance bill processing timeframes or in | ||||||
2 | meeting the possible requirements of Senate Bill 3397, or other | ||||||
3 | similar legislation, of the 97th General Assembly should it | ||||||
4 | become law. | ||||||
5 | (g) Notwithstanding any other State law to the contrary, | ||||||
6 | and in addition to any other transfers that may be provided for | ||||||
7 | by law, on July 1, 2013, or as soon thereafter as may be | ||||||
8 | practical, the State Comptroller shall direct and the State | ||||||
9 | Treasurer shall transfer the sum of $601,000,000 from the | ||||||
10 | General Revenue Fund to the Healthcare Provider Relief Fund. | ||||||
11 | (Source: P.A. 99-516, eff. 6-30-16; 100-587, eff. 6-4-18.)
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12 | Section 10-5. The Illinois Income Tax Act is amended by | ||||||
13 | changing Section 203 as follows:
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14 | (35 ILCS 5/203) (from Ch. 120, par. 2-203) | ||||||
15 | Sec. 203. Base income defined. | ||||||
16 | (a) Individuals. | ||||||
17 | (1) In general. In the case of an individual, base | ||||||
18 | income means an
amount equal to the taxpayer's adjusted | ||||||
19 | gross income for the taxable
year as modified by paragraph | ||||||
20 | (2). | ||||||
21 | (2) Modifications. The adjusted gross income referred | ||||||
22 | to in
paragraph (1) shall be modified by adding thereto the | ||||||
23 | sum of the
following amounts: | ||||||
24 | (A) An amount equal to all amounts paid or accrued |
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1 | to the taxpayer
as interest or dividends during the | ||||||
2 | taxable year to the extent excluded
from gross income | ||||||
3 | in the computation of adjusted gross income, except | ||||||
4 | stock
dividends of qualified public utilities | ||||||
5 | described in Section 305(e) of the
Internal Revenue | ||||||
6 | Code; | ||||||
7 | (B) An amount equal to the amount of tax imposed by | ||||||
8 | this Act to the
extent deducted from gross income in | ||||||
9 | the computation of adjusted gross
income for the | ||||||
10 | taxable year; | ||||||
11 | (C) An amount equal to the amount received during | ||||||
12 | the taxable year
as a recovery or refund of real | ||||||
13 | property taxes paid with respect to the
taxpayer's | ||||||
14 | principal residence under the Revenue Act of
1939 and | ||||||
15 | for which a deduction was previously taken under | ||||||
16 | subparagraph (L) of
this paragraph (2) prior to July 1, | ||||||
17 | 1991, the retrospective application date of
Article 4 | ||||||
18 | of Public Act 87-17. In the case of multi-unit or | ||||||
19 | multi-use
structures and farm dwellings, the taxes on | ||||||
20 | the taxpayer's principal residence
shall be that | ||||||
21 | portion of the total taxes for the entire property | ||||||
22 | which is
attributable to such principal residence; | ||||||
23 | (D) 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 adjusted gross income; |
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1 | (D-5) An amount, to the extent not included in | ||||||
2 | adjusted gross income,
equal to the amount of money | ||||||
3 | withdrawn by the taxpayer in the taxable year from
a | ||||||
4 | medical care savings account and the interest earned on | ||||||
5 | the account in the
taxable year of a withdrawal | ||||||
6 | pursuant to subsection (b) of Section 20 of the
Medical | ||||||
7 | Care Savings Account Act or subsection (b) of Section | ||||||
8 | 20 of the
Medical Care Savings Account Act of 2000; | ||||||
9 | (D-10) For taxable years ending after December 31, | ||||||
10 | 1997, an
amount equal to any eligible remediation costs | ||||||
11 | that the individual
deducted in computing adjusted | ||||||
12 | gross income and for which the
individual claims a | ||||||
13 | credit under subsection (l) of Section 201; | ||||||
14 | (D-15) For taxable years 2001 and thereafter, an | ||||||
15 | amount equal to the
bonus depreciation deduction taken | ||||||
16 | on the taxpayer's federal income tax return for the | ||||||
17 | taxable
year under subsection (k) of Section 168 of the | ||||||
18 | Internal Revenue Code; | ||||||
19 | (D-16) If the taxpayer sells, transfers, abandons, | ||||||
20 | or otherwise disposes of property for which the | ||||||
21 | taxpayer was required in any taxable year to
make an | ||||||
22 | addition modification under subparagraph (D-15), then | ||||||
23 | an amount equal
to the aggregate amount of the | ||||||
24 | deductions taken in all taxable
years under | ||||||
25 | subparagraph (Z) with respect to that property. | ||||||
26 | If the taxpayer continues to own property through |
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1 | the last day of the last tax year for which the | ||||||
2 | taxpayer may claim a depreciation deduction for | ||||||
3 | federal income tax purposes and for which the taxpayer | ||||||
4 | was allowed in any taxable year to make a subtraction | ||||||
5 | modification under subparagraph (Z), then an amount | ||||||
6 | equal to that subtraction modification.
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7 | The taxpayer is required to make the addition | ||||||
8 | modification under this
subparagraph
only once with | ||||||
9 | respect to any one piece of property; | ||||||
10 | (D-17) An amount equal to the amount otherwise | ||||||
11 | allowed as a deduction in computing base income for | ||||||
12 | interest paid, accrued, or incurred, directly or | ||||||
13 | indirectly, (i) for taxable years ending on or after | ||||||
14 | December 31, 2004, to a foreign person who would be a | ||||||
15 | member of the same unitary business group but for the | ||||||
16 | fact that foreign person's business activity outside | ||||||
17 | the United States is 80% or more of the foreign | ||||||
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. The addition modification | ||||||
26 | required by this subparagraph shall be reduced to the |
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1 | extent that dividends were included in base income of | ||||||
2 | the unitary group for the same taxable year and | ||||||
3 | received by the taxpayer or by a member of the | ||||||
4 | taxpayer's unitary business group (including amounts | ||||||
5 | included in gross income under Sections 951 through 964 | ||||||
6 | of the Internal Revenue Code and amounts included in | ||||||
7 | gross income under Section 78 of the Internal Revenue | ||||||
8 | Code) with respect to the stock of the same person to | ||||||
9 | whom the interest was paid, accrued, or incurred. | ||||||
10 | This paragraph shall not apply to the following:
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11 | (i) an item of interest paid, accrued, or | ||||||
12 | incurred, directly or indirectly, to a person who | ||||||
13 | is subject in a foreign country or state, other | ||||||
14 | than a state which requires mandatory unitary | ||||||
15 | reporting, to a tax on or measured by net income | ||||||
16 | with respect to such interest; or | ||||||
17 | (ii) an item of interest paid, accrued, or | ||||||
18 | incurred, directly or indirectly, to a person if | ||||||
19 | the taxpayer can establish, based on a | ||||||
20 | preponderance of the evidence, both of the | ||||||
21 | following: | ||||||
22 | (a) the person, during the same taxable | ||||||
23 | year, paid, accrued, or incurred, the interest | ||||||
24 | to a person that is not a related member, and | ||||||
25 | (b) the transaction giving rise to the | ||||||
26 | interest expense between the taxpayer and the |
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1 | person did not have as a principal purpose the | ||||||
2 | avoidance of Illinois income tax, and is paid | ||||||
3 | pursuant to a contract or agreement that | ||||||
4 | reflects an arm's-length interest rate and | ||||||
5 | terms; or
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6 | (iii) the taxpayer can establish, based on | ||||||
7 | clear and convincing evidence, that the interest | ||||||
8 | paid, accrued, or incurred relates to a contract or | ||||||
9 | agreement entered into at arm's-length rates and | ||||||
10 | terms and the principal purpose for the payment is | ||||||
11 | not federal or Illinois tax avoidance; or
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12 | (iv) an item of interest paid, accrued, or | ||||||
13 | incurred, directly or indirectly, to a person if | ||||||
14 | the taxpayer establishes by clear and convincing | ||||||
15 | evidence that the adjustments are unreasonable; or | ||||||
16 | if the taxpayer and the Director agree in writing | ||||||
17 | to the application or use of an alternative method | ||||||
18 | of apportionment under Section 304(f).
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19 | Nothing in this subsection shall preclude the | ||||||
20 | Director from making any other adjustment | ||||||
21 | otherwise allowed under Section 404 of this Act for | ||||||
22 | any tax year beginning after the effective date of | ||||||
23 | this amendment provided such adjustment is made | ||||||
24 | pursuant to regulation adopted by the Department | ||||||
25 | and such regulations provide methods and standards | ||||||
26 | by which the Department will utilize its authority |
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1 | under Section 404 of this Act;
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2 | (D-18) An amount equal to the amount of intangible | ||||||
3 | expenses and costs otherwise allowed as a deduction in | ||||||
4 | computing base income, and that were paid, accrued, or | ||||||
5 | incurred, directly or indirectly, (i) for taxable | ||||||
6 | years ending on or after December 31, 2004, to a | ||||||
7 | foreign person who would be a member of the same | ||||||
8 | unitary business group but for the fact that the | ||||||
9 | foreign person's business activity outside the United | ||||||
10 | States is 80% or more of that person's total business | ||||||
11 | activity and (ii) for taxable years ending on or after | ||||||
12 | December 31, 2008, to a person who would be a member of | ||||||
13 | the same unitary business group but for the fact that | ||||||
14 | the person is prohibited under Section 1501(a)(27) | ||||||
15 | from being included in the unitary business group | ||||||
16 | because he or she is ordinarily required to apportion | ||||||
17 | business income under different subsections of Section | ||||||
18 | 304. The addition modification required by this | ||||||
19 | subparagraph shall be reduced to the extent that | ||||||
20 | dividends were included in base income of the unitary | ||||||
21 | group for the same taxable year and received by the | ||||||
22 | taxpayer or by a member of the taxpayer's unitary | ||||||
23 | business group (including amounts included in gross | ||||||
24 | income under Sections 951 through 964 of the Internal | ||||||
25 | Revenue Code and amounts included in gross income under | ||||||
26 | Section 78 of the Internal Revenue Code) with respect |
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1 | to the stock of the same person to whom the intangible | ||||||
2 | expenses and costs were directly or indirectly paid, | ||||||
3 | incurred, or accrued. The preceding sentence does not | ||||||
4 | apply to the extent that the same dividends caused a | ||||||
5 | reduction to the addition modification required under | ||||||
6 | Section 203(a)(2)(D-17) of this Act. As used in this | ||||||
7 | subparagraph, the term "intangible expenses and costs" | ||||||
8 | includes (1) expenses, losses, and costs for, or | ||||||
9 | related to, the direct or indirect acquisition, use, | ||||||
10 | maintenance or management, ownership, sale, exchange, | ||||||
11 | or any other disposition of intangible property; (2) | ||||||
12 | losses incurred, directly or indirectly, from | ||||||
13 | factoring transactions or discounting transactions; | ||||||
14 | (3) royalty, patent, technical, and copyright fees; | ||||||
15 | (4) licensing fees; and (5) other similar expenses and | ||||||
16 | costs.
For purposes of this subparagraph, "intangible | ||||||
17 | property" includes patents, patent applications, trade | ||||||
18 | names, trademarks, service marks, copyrights, mask | ||||||
19 | works, trade secrets, and similar types of intangible | ||||||
20 | assets. | ||||||
21 | This paragraph shall not apply to the following: | ||||||
22 | (i) any item of intangible expenses or costs | ||||||
23 | paid, accrued, or incurred, directly or | ||||||
24 | indirectly, from a transaction with a person who is | ||||||
25 | subject in a foreign country or state, other than a | ||||||
26 | state which requires mandatory unitary reporting, |
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1 | to a tax on or measured by net income with respect | ||||||
2 | to such item; or | ||||||
3 | (ii) any item of intangible expense or cost | ||||||
4 | paid, accrued, or incurred, directly or | ||||||
5 | indirectly, if the taxpayer can establish, based | ||||||
6 | on a preponderance of the evidence, both of the | ||||||
7 | following: | ||||||
8 | (a) the person during the same taxable | ||||||
9 | year paid, accrued, or incurred, the | ||||||
10 | intangible expense or cost to a person that is | ||||||
11 | not a related member, and | ||||||
12 | (b) the transaction giving rise to the | ||||||
13 | intangible expense or cost between the | ||||||
14 | taxpayer and the person did not have as a | ||||||
15 | principal purpose the avoidance of Illinois | ||||||
16 | income tax, and is paid pursuant to a contract | ||||||
17 | or agreement that reflects arm's-length terms; | ||||||
18 | or | ||||||
19 | (iii) any item of intangible expense or cost | ||||||
20 | paid, accrued, or incurred, directly or | ||||||
21 | indirectly, from a transaction with a person if the | ||||||
22 | taxpayer establishes by clear and convincing | ||||||
23 | evidence, that the adjustments are unreasonable; | ||||||
24 | or if the taxpayer and the Director agree in | ||||||
25 | writing to the application or use of an alternative | ||||||
26 | method of apportionment under Section 304(f);
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1 | Nothing in this subsection shall preclude the | ||||||
2 | Director from making any other adjustment | ||||||
3 | otherwise allowed under Section 404 of this Act for | ||||||
4 | any tax year beginning after the effective date of | ||||||
5 | this amendment provided such adjustment is made | ||||||
6 | pursuant to regulation adopted by the Department | ||||||
7 | and such regulations provide methods and standards | ||||||
8 | by which the Department will utilize its authority | ||||||
9 | under Section 404 of this Act;
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10 | (D-19) For taxable years ending on or after | ||||||
11 | December 31, 2008, an amount equal to the amount of | ||||||
12 | insurance premium expenses and costs otherwise allowed | ||||||
13 | as a deduction in computing base income, and that were | ||||||
14 | paid, accrued, or incurred, directly or indirectly, to | ||||||
15 | a person who would be a member of the same unitary | ||||||
16 | business group but for the fact that the person is | ||||||
17 | prohibited under Section 1501(a)(27) from being | ||||||
18 | included in the unitary business group because he or | ||||||
19 | she is ordinarily required to apportion business | ||||||
20 | income under different subsections of Section 304. The | ||||||
21 | addition modification required by this subparagraph | ||||||
22 | shall be reduced to the extent that dividends were | ||||||
23 | included in base income of the unitary group for the | ||||||
24 | same taxable year and received by the taxpayer or by a | ||||||
25 | member of the taxpayer's unitary business group | ||||||
26 | (including amounts included in gross income under |
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1 | Sections 951 through 964 of the Internal Revenue Code | ||||||
2 | and amounts included in gross income under Section 78 | ||||||
3 | of the Internal Revenue Code) with respect to the stock | ||||||
4 | of the same person to whom the premiums and costs were | ||||||
5 | directly or indirectly paid, incurred, or accrued. The | ||||||
6 | preceding sentence does not apply to the extent that | ||||||
7 | the same dividends caused a reduction to the addition | ||||||
8 | modification required under Section 203(a)(2)(D-17) or | ||||||
9 | Section 203(a)(2)(D-18) of this Act.
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10 | (D-20) For taxable years beginning on or after | ||||||
11 | January 1,
2002 and ending on or before December 31, | ||||||
12 | 2006, in
the
case of a distribution from a qualified | ||||||
13 | tuition program under Section 529 of
the Internal | ||||||
14 | Revenue Code, other than (i) a distribution from a | ||||||
15 | College Savings
Pool created under Section 16.5 of the | ||||||
16 | State Treasurer Act or (ii) a
distribution from the | ||||||
17 | Illinois Prepaid Tuition Trust Fund, an amount equal to
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18 | the amount excluded from gross income under Section | ||||||
19 | 529(c)(3)(B). For taxable years beginning on or after | ||||||
20 | January 1, 2007, in the case of a distribution from a | ||||||
21 | qualified tuition program under Section 529 of the | ||||||
22 | Internal Revenue Code, other than (i) a distribution | ||||||
23 | from a College Savings Pool created under Section 16.5 | ||||||
24 | of the State Treasurer Act, (ii) a distribution from | ||||||
25 | the Illinois Prepaid Tuition Trust Fund, or (iii) a | ||||||
26 | distribution from a qualified tuition program under |
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1 | Section 529 of the Internal Revenue Code that (I) | ||||||
2 | adopts and determines that its offering materials | ||||||
3 | comply with the College Savings Plans Network's | ||||||
4 | disclosure principles and (II) has made reasonable | ||||||
5 | efforts to inform in-state residents of the existence | ||||||
6 | of in-state qualified tuition programs by informing | ||||||
7 | Illinois residents directly and, where applicable, to | ||||||
8 | inform financial intermediaries distributing the | ||||||
9 | program to inform in-state residents of the existence | ||||||
10 | of in-state qualified tuition programs at least | ||||||
11 | annually, an amount equal to the amount excluded from | ||||||
12 | gross income under Section 529(c)(3)(B). | ||||||
13 | For the purposes of this subparagraph (D-20), a | ||||||
14 | qualified tuition program has made reasonable efforts | ||||||
15 | if it makes disclosures (which may use the term | ||||||
16 | "in-state program" or "in-state plan" and need not | ||||||
17 | specifically refer to Illinois or its qualified | ||||||
18 | programs by name) (i) directly to prospective | ||||||
19 | participants in its offering materials or makes a | ||||||
20 | public disclosure, such as a website posting; and (ii) | ||||||
21 | where applicable, to intermediaries selling the | ||||||
22 | out-of-state program in the same manner that the | ||||||
23 | out-of-state program distributes its offering | ||||||
24 | materials; | ||||||
25 | (D-20.5) For taxable years beginning on or after | ||||||
26 | January 1, 2018, in the case of a distribution from a |
| |||||||
| |||||||
1 | qualified ABLE program under Section 529A of the | ||||||
2 | Internal Revenue Code, other than a distribution from a | ||||||
3 | qualified ABLE program created under Section 16.6 of | ||||||
4 | the State Treasurer Act, an amount equal to the amount | ||||||
5 | excluded from gross income under Section 529A(c)(1)(B) | ||||||
6 | of the Internal Revenue Code; | ||||||
7 | (D-21) For taxable years beginning on or after | ||||||
8 | January 1, 2007, in the case of transfer of moneys from | ||||||
9 | a qualified tuition program under Section 529 of the | ||||||
10 | Internal Revenue Code that is administered by the State | ||||||
11 | to an out-of-state program, an amount equal to the | ||||||
12 | amount of moneys previously deducted from base income | ||||||
13 | under subsection (a)(2)(Y) of this Section; | ||||||
14 | (D-21.5) For taxable years beginning on or after | ||||||
15 | January 1, 2018, in the case of the transfer of moneys | ||||||
16 | from a qualified tuition program under Section 529 or a | ||||||
17 | qualified ABLE program under Section 529A of the | ||||||
18 | Internal Revenue Code that is administered by this | ||||||
19 | State to an ABLE account established under an | ||||||
20 | out-of-state ABLE account program, an amount equal to | ||||||
21 | the contribution component of the transferred amount | ||||||
22 | that was previously deducted from base income under | ||||||
23 | subsection (a)(2)(Y) or subsection (a)(2)(HH) of this | ||||||
24 | Section; | ||||||
25 | (D-22) For taxable years beginning on or after | ||||||
26 | January 1, 2009, and prior to January 1, 2018, in the |
| |||||||
| |||||||
1 | case of a nonqualified withdrawal or refund of moneys | ||||||
2 | from a qualified tuition program under Section 529 of | ||||||
3 | the Internal Revenue Code administered by the State | ||||||
4 | that is not used for qualified expenses at an eligible | ||||||
5 | education institution, an amount equal to the | ||||||
6 | contribution component of the nonqualified withdrawal | ||||||
7 | or refund that was previously deducted from base income | ||||||
8 | under subsection (a)(2)(y) of this Section, provided | ||||||
9 | that the withdrawal or refund did not result from the | ||||||
10 | beneficiary's death or disability. For taxable years | ||||||
11 | beginning on or after January 1, 2018: (1) in the case | ||||||
12 | of a nonqualified withdrawal or refund, as defined | ||||||
13 | under Section
16.5 of the State Treasurer Act, of | ||||||
14 | moneys from a qualified tuition program under Section | ||||||
15 | 529 of the Internal Revenue Code administered by the | ||||||
16 | State, an amount equal to the contribution component of | ||||||
17 | the nonqualified withdrawal or refund that was | ||||||
18 | previously deducted from base
income under subsection | ||||||
19 | (a)(2)(Y) of this Section, and (2) in the case of a | ||||||
20 | nonqualified withdrawal or refund from a qualified | ||||||
21 | ABLE program under Section 529A of the Internal Revenue | ||||||
22 | Code administered by the State that is not used for | ||||||
23 | qualified disability expenses, an amount equal to the | ||||||
24 | contribution component of the nonqualified withdrawal | ||||||
25 | or refund that was previously deducted from base income | ||||||
26 | under subsection (a)(2)(HH) of this Section; |
| |||||||
| |||||||
1 | (D-23) An amount equal to the credit allowable to | ||||||
2 | the taxpayer under Section 218(a) of this Act, | ||||||
3 | determined without regard to Section 218(c) of this | ||||||
4 | Act; | ||||||
5 | (D-24) For taxable years ending on or after | ||||||
6 | December 31, 2017, an amount equal to the deduction | ||||||
7 | allowed under Section 199 of the Internal Revenue Code | ||||||
8 | for the taxable year; | ||||||
9 | and by deducting from the total so obtained the
sum of the | ||||||
10 | following amounts: | ||||||
11 | (E) For taxable years ending before December 31, | ||||||
12 | 2001,
any amount included in such total in respect of | ||||||
13 | any compensation
(including but not limited to any | ||||||
14 | compensation paid or accrued to a
serviceman while a | ||||||
15 | prisoner of war or missing in action) paid to a | ||||||
16 | resident
by reason of being on active duty in the Armed | ||||||
17 | Forces of the United States
and in respect of any | ||||||
18 | compensation paid or accrued to a resident who as a
| ||||||
19 | governmental employee was a prisoner of war or missing | ||||||
20 | in action, and in
respect of any compensation paid to a | ||||||
21 | resident in 1971 or thereafter for
annual training | ||||||
22 | performed pursuant to Sections 502 and 503, Title 32,
| ||||||
23 | United States Code as a member of the Illinois National | ||||||
24 | Guard or, beginning with taxable years ending on or | ||||||
25 | after December 31, 2007, the National Guard of any | ||||||
26 | other state.
For taxable years ending on or after |
| |||||||
| |||||||
1 | December 31, 2001, any amount included in
such total in | ||||||
2 | respect of any compensation (including but not limited | ||||||
3 | to any
compensation paid or accrued to a serviceman | ||||||
4 | while a prisoner of war or missing
in action) paid to a | ||||||
5 | resident by reason of being a member of any component | ||||||
6 | of
the Armed Forces of the United States and in respect | ||||||
7 | of any compensation paid
or accrued to a resident who | ||||||
8 | as a governmental employee was a prisoner of war
or | ||||||
9 | missing in action, and in respect of any compensation | ||||||
10 | paid to a resident in
2001 or thereafter by reason of | ||||||
11 | being a member of the Illinois National Guard or, | ||||||
12 | beginning with taxable years ending on or after | ||||||
13 | December 31, 2007, the National Guard of any other | ||||||
14 | state.
The provisions of this subparagraph (E) are | ||||||
15 | exempt
from the provisions of Section 250; | ||||||
16 | (F) An amount equal to all amounts included in such | ||||||
17 | total pursuant
to the provisions of Sections 402(a), | ||||||
18 | 402(c), 403(a), 403(b), 406(a), 407(a),
and 408 of the | ||||||
19 | Internal Revenue Code, or included in such total as
| ||||||
20 | distributions under the provisions of any retirement | ||||||
21 | or disability plan for
employees of any governmental | ||||||
22 | agency or unit, or retirement payments to
retired | ||||||
23 | partners, which payments are excluded in computing net | ||||||
24 | earnings
from self employment by Section 1402 of the | ||||||
25 | Internal Revenue Code and
regulations adopted pursuant | ||||||
26 | thereto; |
| |||||||
| |||||||
1 | (G) The valuation limitation amount; | ||||||
2 | (H) An amount equal to the amount of any tax | ||||||
3 | imposed by this Act
which was refunded to the taxpayer | ||||||
4 | and included in such total for the
taxable year; | ||||||
5 | (I) An amount equal to all amounts included in such | ||||||
6 | total pursuant
to the provisions of Section 111 of the | ||||||
7 | Internal Revenue Code as a
recovery of items previously | ||||||
8 | deducted from adjusted gross income in the
computation | ||||||
9 | of taxable income; | ||||||
10 | (J) An amount equal to those dividends included in | ||||||
11 | such total which were
paid by a corporation which | ||||||
12 | conducts business operations in a River Edge | ||||||
13 | Redevelopment Zone or zones created under the River | ||||||
14 | Edge Redevelopment Zone Act, and conducts
| ||||||
15 | substantially all of its operations in a River Edge | ||||||
16 | Redevelopment Zone or zones. This subparagraph (J) is | ||||||
17 | exempt from the provisions of Section 250; | ||||||
18 | (K) An amount equal to those dividends included in | ||||||
19 | such total that
were paid by a corporation that | ||||||
20 | conducts business operations in a federally
designated | ||||||
21 | Foreign Trade Zone or Sub-Zone and that is designated a | ||||||
22 | High Impact
Business located in Illinois; provided | ||||||
23 | that dividends eligible for the
deduction provided in | ||||||
24 | subparagraph (J) of paragraph (2) of this subsection
| ||||||
25 | shall not be eligible for the deduction provided under | ||||||
26 | this subparagraph
(K); |
| |||||||
| |||||||
1 | (L) For taxable years ending after December 31, | ||||||
2 | 1983, an amount equal to
all social security benefits | ||||||
3 | and railroad retirement benefits included in
such | ||||||
4 | total pursuant to Sections 72(r) and 86 of the Internal | ||||||
5 | Revenue Code; | ||||||
6 | (M) With the exception of any amounts subtracted | ||||||
7 | under subparagraph
(N), an amount equal to the sum of | ||||||
8 | all amounts disallowed as
deductions by (i) Sections | ||||||
9 | 171(a)(2), and 265(a)(2) 265(2) of the Internal | ||||||
10 | Revenue Code, and all amounts of expenses allocable
to | ||||||
11 | interest and disallowed as deductions by Section | ||||||
12 | 265(a)(1) 265(1) of the Internal
Revenue Code;
and (ii) | ||||||
13 | for taxable years
ending on or after August 13, 1999, | ||||||
14 | Sections 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of | ||||||
15 | the Internal Revenue Code, plus, for taxable years | ||||||
16 | ending on or after December 31, 2011, Section 45G(e)(3) | ||||||
17 | of the Internal Revenue Code and, for taxable years | ||||||
18 | ending on or after December 31, 2008, any amount | ||||||
19 | included in gross income under Section 87 of the | ||||||
20 | Internal Revenue Code; the provisions of this
| ||||||
21 | subparagraph are exempt from the provisions of Section | ||||||
22 | 250; | ||||||
23 | (N) An amount equal to all amounts included in such | ||||||
24 | total which are
exempt from taxation by this State | ||||||
25 | either by reason of its statutes or
Constitution
or by | ||||||
26 | reason of the Constitution, treaties or statutes of the |
| |||||||
| |||||||
1 | United States;
provided that, in the case of any | ||||||
2 | statute of this State that exempts income
derived from | ||||||
3 | bonds or other obligations from the tax imposed under | ||||||
4 | this Act,
the amount exempted shall be the interest net | ||||||
5 | of bond premium amortization; | ||||||
6 | (O) An amount equal to any contribution made to a | ||||||
7 | job training
project established pursuant to the Tax | ||||||
8 | Increment Allocation Redevelopment Act; | ||||||
9 | (P) An amount equal to the amount of the deduction | ||||||
10 | used to compute the
federal income tax credit for | ||||||
11 | restoration of substantial amounts held under
claim of | ||||||
12 | right for the taxable year pursuant to Section 1341 of | ||||||
13 | the
Internal Revenue Code or of any itemized deduction | ||||||
14 | taken from adjusted gross income in the computation of | ||||||
15 | taxable income for restoration of substantial amounts | ||||||
16 | held under claim of right for the taxable year; | ||||||
17 | (Q) An amount equal to any amounts included in such | ||||||
18 | total, received by
the taxpayer as an acceleration in | ||||||
19 | the payment of life, endowment or annuity
benefits in | ||||||
20 | advance of the time they would otherwise be payable as | ||||||
21 | an indemnity
for a terminal illness; | ||||||
22 | (R) An amount equal to the amount of any federal or | ||||||
23 | State bonus paid
to veterans of the Persian Gulf War; | ||||||
24 | (S) An amount, to the extent included in adjusted | ||||||
25 | gross income, equal
to the amount of a contribution | ||||||
26 | made in the taxable year on behalf of the
taxpayer to a |
| |||||||
| |||||||
1 | medical care savings account established under the | ||||||
2 | Medical Care
Savings Account Act or the Medical Care | ||||||
3 | Savings Account Act of 2000 to the
extent the | ||||||
4 | contribution is accepted by the account
administrator | ||||||
5 | as provided in that Act; | ||||||
6 | (T) An amount, to the extent included in adjusted | ||||||
7 | gross income, equal to
the amount of interest earned in | ||||||
8 | the taxable year on a medical care savings
account | ||||||
9 | established under the Medical Care Savings Account Act | ||||||
10 | or the Medical
Care Savings Account Act of 2000 on | ||||||
11 | behalf of the
taxpayer, other than interest added | ||||||
12 | pursuant to item (D-5) of this paragraph
(2); | ||||||
13 | (U) For one taxable year beginning on or after | ||||||
14 | January 1,
1994, an
amount equal to the total amount of | ||||||
15 | tax imposed and paid under subsections (a)
and (b) of | ||||||
16 | Section 201 of this Act on grant amounts received by | ||||||
17 | the taxpayer
under the Nursing Home Grant Assistance | ||||||
18 | Act during the taxpayer's taxable years
1992 and 1993; | ||||||
19 | (V) Beginning with tax years ending on or after | ||||||
20 | December 31, 1995 and
ending with tax years ending on | ||||||
21 | or before December 31, 2004, an amount equal to
the | ||||||
22 | amount paid by a taxpayer who is a
self-employed | ||||||
23 | taxpayer, a partner of a partnership, or a
shareholder | ||||||
24 | in a Subchapter S corporation for health insurance or | ||||||
25 | long-term
care insurance for that taxpayer or that | ||||||
26 | taxpayer's spouse or dependents, to
the extent that the |
| |||||||
| |||||||
1 | amount paid for that health insurance or long-term care
| ||||||
2 | insurance may be deducted under Section 213 of the | ||||||
3 | Internal Revenue Code, has not been deducted on the | ||||||
4 | federal income tax return of the taxpayer,
and does not | ||||||
5 | exceed the taxable income attributable to that | ||||||
6 | taxpayer's income,
self-employment income, or | ||||||
7 | Subchapter S corporation income; except that no
| ||||||
8 | deduction shall be allowed under this item (V) if the | ||||||
9 | taxpayer is eligible to
participate in any health | ||||||
10 | insurance or long-term care insurance plan of an
| ||||||
11 | employer of the taxpayer or the taxpayer's
spouse. The | ||||||
12 | amount of the health insurance and long-term care | ||||||
13 | insurance
subtracted under this item (V) shall be | ||||||
14 | determined by multiplying total
health insurance and | ||||||
15 | long-term care insurance premiums paid by the taxpayer
| ||||||
16 | times a number that represents the fractional | ||||||
17 | percentage of eligible medical
expenses under Section | ||||||
18 | 213 of the Internal Revenue Code of 1986 not actually
| ||||||
19 | deducted on the taxpayer's federal income tax return; | ||||||
20 | (W) For taxable years beginning on or after January | ||||||
21 | 1, 1998,
all amounts included in the taxpayer's federal | ||||||
22 | gross income
in the taxable year from amounts converted | ||||||
23 | from a regular IRA to a Roth IRA.
This paragraph is | ||||||
24 | exempt from the provisions of Section
250; | ||||||
25 | (X) For taxable year 1999 and thereafter, an amount | ||||||
26 | equal to the
amount of any (i) distributions, to the |
| |||||||
| |||||||
1 | extent includible in gross income for
federal income | ||||||
2 | tax purposes, made to the taxpayer because of his or | ||||||
3 | her status
as a victim of persecution for racial or | ||||||
4 | religious reasons by Nazi Germany or
any other Axis | ||||||
5 | regime or as an heir of the victim and (ii) items
of | ||||||
6 | income, to the extent
includible in gross income for | ||||||
7 | federal income tax purposes, attributable to,
derived | ||||||
8 | from or in any way related to assets stolen from, | ||||||
9 | hidden from, or
otherwise lost to a victim of
| ||||||
10 | persecution for racial or religious reasons by Nazi | ||||||
11 | Germany or any other Axis
regime immediately prior to, | ||||||
12 | during, and immediately after World War II,
including, | ||||||
13 | but
not limited to, interest on the proceeds receivable | ||||||
14 | as insurance
under policies issued to a victim of | ||||||
15 | persecution for racial or religious
reasons
by Nazi | ||||||
16 | Germany or any other Axis regime by European insurance | ||||||
17 | companies
immediately prior to and during World War II;
| ||||||
18 | provided, however, this subtraction from federal | ||||||
19 | adjusted gross income does not
apply to assets acquired | ||||||
20 | with such assets or with the proceeds from the sale of
| ||||||
21 | such assets; provided, further, this paragraph shall | ||||||
22 | only apply to a taxpayer
who was the first recipient of | ||||||
23 | such assets after their recovery and who is a
victim of | ||||||
24 | persecution for racial or religious reasons
by Nazi | ||||||
25 | Germany or any other Axis regime or as an heir of the | ||||||
26 | victim. The
amount of and the eligibility for any |
| |||||||
| |||||||
1 | public assistance, benefit, or
similar entitlement is | ||||||
2 | not affected by the inclusion of items (i) and (ii) of
| ||||||
3 | this paragraph in gross income for federal income tax | ||||||
4 | purposes.
This paragraph is exempt from the provisions | ||||||
5 | of Section 250; | ||||||
6 | (Y) For taxable years beginning on or after January | ||||||
7 | 1, 2002
and ending
on or before December 31, 2004, | ||||||
8 | moneys contributed in the taxable year to a College | ||||||
9 | Savings Pool account under
Section 16.5 of the State | ||||||
10 | Treasurer Act, except that amounts excluded from
gross | ||||||
11 | income under Section 529(c)(3)(C)(i) of the Internal | ||||||
12 | Revenue Code
shall not be considered moneys | ||||||
13 | contributed under this subparagraph (Y). For taxable | ||||||
14 | years beginning on or after January 1, 2005, a maximum | ||||||
15 | of $10,000
contributed
in the
taxable year to (i) a | ||||||
16 | College Savings Pool account under Section 16.5 of the
| ||||||
17 | State
Treasurer Act or (ii) the Illinois Prepaid | ||||||
18 | Tuition Trust Fund,
except that
amounts excluded from | ||||||
19 | gross income under Section 529(c)(3)(C)(i) of the
| ||||||
20 | Internal
Revenue Code shall not be considered moneys | ||||||
21 | contributed under this subparagraph
(Y). For purposes | ||||||
22 | of this subparagraph, contributions made by an | ||||||
23 | employer on behalf of an employee, or matching | ||||||
24 | contributions made by an employee, shall be treated as | ||||||
25 | made by the employee. This
subparagraph (Y) is exempt | ||||||
26 | from the provisions of Section 250; |
| |||||||
| |||||||
1 | (Z) For taxable years 2001 and thereafter, for the | ||||||
2 | taxable year in
which the bonus depreciation deduction
| ||||||
3 | is taken on the taxpayer's federal income tax return | ||||||
4 | under
subsection (k) of Section 168 of the Internal | ||||||
5 | Revenue Code and for each
applicable taxable year | ||||||
6 | thereafter, an amount equal to "x", where: | ||||||
7 | (1) "y" equals the amount of the depreciation | ||||||
8 | deduction taken for the
taxable year
on the | ||||||
9 | taxpayer's federal income tax return on property | ||||||
10 | for which the bonus
depreciation deduction
was | ||||||
11 | taken in any year under subsection (k) of Section | ||||||
12 | 168 of the Internal
Revenue Code, but not including | ||||||
13 | the bonus depreciation deduction; | ||||||
14 | (2) for taxable years ending on or before | ||||||
15 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
16 | and then divided by 70 (or "y"
multiplied by | ||||||
17 | 0.429); and | ||||||
18 | (3) for taxable years ending after December | ||||||
19 | 31, 2005: | ||||||
20 | (i) for property on which a bonus | ||||||
21 | depreciation deduction of 30% of the adjusted | ||||||
22 | basis was taken, "x" equals "y" multiplied by | ||||||
23 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
24 | 0.429); and | ||||||
25 | (ii) for property on which a bonus | ||||||
26 | depreciation deduction of 50% of the adjusted |
| |||||||
| |||||||
1 | basis was taken, "x" equals "y" multiplied by | ||||||
2 | 1.0. | ||||||
3 | The aggregate amount deducted under this | ||||||
4 | subparagraph in all taxable
years for any one piece of | ||||||
5 | property may not exceed the amount of the bonus
| ||||||
6 | depreciation deduction
taken on that property on the | ||||||
7 | taxpayer's federal income tax return under
subsection | ||||||
8 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
9 | subparagraph (Z) is exempt from the provisions of | ||||||
10 | Section 250; | ||||||
11 | (AA) 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 (D-15), then | ||||||
15 | an amount equal to that
addition modification.
| ||||||
16 | If the taxpayer continues to own property through | ||||||
17 | the last day of the last tax year for which the | ||||||
18 | taxpayer may claim a depreciation deduction for | ||||||
19 | federal income tax purposes and for which the taxpayer | ||||||
20 | was required in any taxable year to make an addition | ||||||
21 | modification under subparagraph (D-15), then an amount | ||||||
22 | equal to that addition modification.
| ||||||
23 | The taxpayer is allowed to take the deduction under | ||||||
24 | this subparagraph
only once with respect to any one | ||||||
25 | piece of property. | ||||||
26 | This subparagraph (AA) is exempt from the |
| |||||||
| |||||||
1 | provisions of Section 250; | ||||||
2 | (BB) Any amount included in adjusted gross income, | ||||||
3 | other
than
salary,
received by a driver in a | ||||||
4 | ridesharing arrangement using a motor vehicle; | ||||||
5 | (CC) The amount of (i) any interest income (net of | ||||||
6 | the deductions allocable thereto) taken into account | ||||||
7 | for the taxable year with respect to a transaction with | ||||||
8 | a taxpayer that is required to make an addition | ||||||
9 | modification with respect to such transaction under | ||||||
10 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
11 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
12 | the amount of that addition modification, and
(ii) any | ||||||
13 | income from intangible property (net of the deductions | ||||||
14 | allocable thereto) taken into account for the taxable | ||||||
15 | year with respect to a transaction with a taxpayer that | ||||||
16 | is required to make an addition modification with | ||||||
17 | respect to such transaction under Section | ||||||
18 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
19 | 203(d)(2)(D-8), but not to exceed the amount of that | ||||||
20 | addition modification. This subparagraph (CC) is | ||||||
21 | exempt from the provisions of Section 250; | ||||||
22 | (DD) An amount equal to the interest income taken | ||||||
23 | into account for the taxable year (net of the | ||||||
24 | deductions allocable thereto) with respect to | ||||||
25 | transactions with (i) a foreign person who would be a | ||||||
26 | member of the taxpayer's unitary business group but for |
| |||||||
| |||||||
1 | the fact that the foreign person's business activity | ||||||
2 | outside the United States is 80% or more of that | ||||||
3 | person's total business activity and (ii) for taxable | ||||||
4 | years ending on or after December 31, 2008, to a person | ||||||
5 | who would be a member of the same unitary business | ||||||
6 | group but for the fact that the person is prohibited | ||||||
7 | under Section 1501(a)(27) from being included in the | ||||||
8 | unitary business group because he or she is ordinarily | ||||||
9 | required to apportion business income under different | ||||||
10 | subsections of Section 304, but not to exceed the | ||||||
11 | addition modification required to be made for the same | ||||||
12 | taxable year under Section 203(a)(2)(D-17) for | ||||||
13 | interest paid, accrued, or incurred, directly or | ||||||
14 | indirectly, to the same person. This subparagraph (DD) | ||||||
15 | is exempt from the provisions of Section 250; | ||||||
16 | (EE) An amount equal to the income from intangible | ||||||
17 | property taken into account for the taxable year (net | ||||||
18 | of the 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(a)(2)(D-18) for | ||||||
7 | intangible expenses and costs paid, accrued, or | ||||||
8 | incurred, directly or indirectly, to the same foreign | ||||||
9 | person. This subparagraph (EE) is exempt from the | ||||||
10 | provisions of Section 250; | ||||||
11 | (FF) An amount equal to any amount awarded to the | ||||||
12 | taxpayer during the taxable year by the Court of Claims | ||||||
13 | under subsection (c) of Section 8 of the Court of | ||||||
14 | Claims Act for time unjustly served in a State prison. | ||||||
15 | This subparagraph (FF) is exempt from the provisions of | ||||||
16 | Section 250; | ||||||
17 | (GG) For taxable years ending on or after December | ||||||
18 | 31, 2011, in the case of a taxpayer who was required to | ||||||
19 | add back any insurance premiums under Section | ||||||
20 | 203(a)(2)(D-19), such taxpayer may elect to subtract | ||||||
21 | that part of a reimbursement received from the | ||||||
22 | insurance company equal to the amount of the expense or | ||||||
23 | loss (including expenses incurred by the insurance | ||||||
24 | company) that would have been taken into account as a | ||||||
25 | deduction for federal income tax purposes if the | ||||||
26 | expense or loss had been uninsured. If a taxpayer makes |
| |||||||
| |||||||
1 | the election provided for by this subparagraph (GG), | ||||||
2 | the insurer to which the premiums were paid must add | ||||||
3 | back to income the amount subtracted by the taxpayer | ||||||
4 | pursuant to this subparagraph (GG). This subparagraph | ||||||
5 | (GG) is exempt from the provisions of Section 250; and | ||||||
6 | (HH) For taxable years beginning on or after | ||||||
7 | January 1, 2018 and prior to January 1, 2023, a maximum | ||||||
8 | of $10,000 contributed in the taxable year to a | ||||||
9 | qualified ABLE account under Section 16.6 of the State | ||||||
10 | Treasurer Act, except that amounts excluded from gross | ||||||
11 | income under Section 529(c)(3)(C)(i) or Section | ||||||
12 | 529A(c)(1)(C) of the Internal Revenue Code shall not be | ||||||
13 | considered moneys contributed under this subparagraph | ||||||
14 | (HH). For purposes of this subparagraph (HH), | ||||||
15 | contributions made by an employer on behalf of an | ||||||
16 | employee, or matching contributions made by an | ||||||
17 | employee, shall be treated as made by the employee.
| ||||||
18 | (b) Corporations. | ||||||
19 | (1) In general. In the case of a corporation, base | ||||||
20 | income means an
amount equal to the taxpayer's taxable | ||||||
21 | income for the taxable year as
modified by paragraph (2). | ||||||
22 | (2) Modifications. The taxable income referred to in | ||||||
23 | paragraph (1)
shall be modified by adding thereto the sum | ||||||
24 | of the following amounts: | ||||||
25 | (A) An amount equal to all amounts paid or accrued |
| |||||||
| |||||||
1 | to the taxpayer
as interest and all distributions | ||||||
2 | received from regulated investment
companies during | ||||||
3 | the taxable year to the extent excluded from gross
| ||||||
4 | income in the computation of taxable income; | ||||||
5 | (B) An amount equal to the amount of tax imposed by | ||||||
6 | this Act to the
extent deducted from gross income in | ||||||
7 | the computation of taxable income
for the taxable year; | ||||||
8 | (C) In the case of a regulated investment company, | ||||||
9 | an amount equal to
the excess of (i) the net long-term | ||||||
10 | capital gain for the taxable year, over
(ii) the amount | ||||||
11 | of the capital gain dividends designated as such in | ||||||
12 | accordance
with Section 852(b)(3)(C) of the Internal | ||||||
13 | Revenue Code and any amount
designated under Section | ||||||
14 | 852(b)(3)(D) of the Internal Revenue Code,
| ||||||
15 | attributable to the taxable year (this amendatory Act | ||||||
16 | of 1995
(Public Act 89-89) is declarative of existing | ||||||
17 | law and is not a new
enactment); | ||||||
18 | (D) The amount of any net operating loss deduction | ||||||
19 | taken in arriving
at taxable income, other than a net | ||||||
20 | operating loss carried forward from a
taxable year | ||||||
21 | ending prior to December 31, 1986; | ||||||
22 | (E) For taxable years in which a net operating loss | ||||||
23 | carryback or
carryforward from a taxable year ending | ||||||
24 | prior to December 31, 1986 is an
element of taxable | ||||||
25 | income under paragraph (1) of subsection (e) or
| ||||||
26 | subparagraph (E) of paragraph (2) of subsection (e), |
| |||||||
| |||||||
1 | the amount by which
addition modifications other than | ||||||
2 | those provided by this subparagraph (E)
exceeded | ||||||
3 | subtraction modifications in such earlier taxable | ||||||
4 | year, with the
following limitations applied in the | ||||||
5 | order that they are listed: | ||||||
6 | (i) the addition modification relating to the | ||||||
7 | net operating loss
carried back or forward to the | ||||||
8 | taxable year from any taxable year ending
prior to | ||||||
9 | December 31, 1986 shall be reduced by the amount of | ||||||
10 | addition
modification under this subparagraph (E) | ||||||
11 | which related to that net operating
loss and which | ||||||
12 | was taken into account in calculating the base | ||||||
13 | income of an
earlier taxable year, and | ||||||
14 | (ii) the addition modification relating to the | ||||||
15 | net operating loss
carried back or forward to the | ||||||
16 | taxable year from any taxable year ending
prior to | ||||||
17 | December 31, 1986 shall not exceed the amount of | ||||||
18 | such carryback or
carryforward; | ||||||
19 | For taxable years in which there is a net operating | ||||||
20 | loss carryback or
carryforward from more than one other | ||||||
21 | taxable year ending prior to December
31, 1986, the | ||||||
22 | addition modification provided in this subparagraph | ||||||
23 | (E) shall
be the sum of the amounts computed | ||||||
24 | independently under the preceding
provisions of this | ||||||
25 | subparagraph (E) for each such taxable year; | ||||||
26 | (E-5) For taxable years ending after December 31, |
| |||||||
| |||||||
1 | 1997, an
amount equal to any eligible remediation costs | ||||||
2 | that the corporation
deducted in computing adjusted | ||||||
3 | gross income and for which the
corporation claims a | ||||||
4 | credit under subsection (l) of Section 201; | ||||||
5 | (E-10) For taxable years 2001 and thereafter, an | ||||||
6 | amount equal to the
bonus depreciation deduction taken | ||||||
7 | on the taxpayer's federal income tax return for the | ||||||
8 | taxable
year under subsection (k) of Section 168 of the | ||||||
9 | Internal Revenue Code; | ||||||
10 | (E-11) If the taxpayer sells, transfers, abandons, | ||||||
11 | or otherwise disposes of property for which the | ||||||
12 | taxpayer was required in any taxable year to
make an | ||||||
13 | addition modification under subparagraph (E-10), then | ||||||
14 | an amount equal
to the aggregate amount of the | ||||||
15 | deductions taken in all taxable
years under | ||||||
16 | subparagraph (T) with respect to that property. | ||||||
17 | If the taxpayer continues to own property through | ||||||
18 | the last day of the last tax year for which the | ||||||
19 | taxpayer may claim a depreciation deduction for | ||||||
20 | federal income tax purposes and for which the taxpayer | ||||||
21 | was allowed in any taxable year to make a subtraction | ||||||
22 | modification under subparagraph (T), then an amount | ||||||
23 | equal to that subtraction modification.
| ||||||
24 | The taxpayer is required to make the addition | ||||||
25 | modification under this
subparagraph
only once with | ||||||
26 | respect to any one piece of property; |
| |||||||
| |||||||
1 | (E-12) An amount equal to the amount otherwise | ||||||
2 | allowed as a deduction in computing base income for | ||||||
3 | interest paid, accrued, or incurred, directly or | ||||||
4 | indirectly, (i) for taxable years ending on or after | ||||||
5 | December 31, 2004, to a foreign person who would be a | ||||||
6 | member of the same unitary business group but for the | ||||||
7 | fact the foreign person's business activity outside | ||||||
8 | the United States is 80% or more of the foreign | ||||||
9 | person's total business activity and (ii) for taxable | ||||||
10 | years ending on or after December 31, 2008, to a person | ||||||
11 | who would be a member of the same unitary business | ||||||
12 | group but for the fact that the person is prohibited | ||||||
13 | under Section 1501(a)(27) from being included in the | ||||||
14 | unitary business group because he or she is ordinarily | ||||||
15 | required to apportion business income under different | ||||||
16 | subsections of Section 304. The addition modification | ||||||
17 | required by this subparagraph shall be reduced to the | ||||||
18 | extent that dividends were included in base income of | ||||||
19 | the unitary group for the same taxable year and | ||||||
20 | received by the taxpayer or by a member of the | ||||||
21 | taxpayer's unitary business group (including amounts | ||||||
22 | included in gross income pursuant to Sections 951 | ||||||
23 | through 964 of the Internal Revenue Code and amounts | ||||||
24 | included in gross income under Section 78 of the | ||||||
25 | Internal Revenue Code) with respect to the stock of the | ||||||
26 | same person to whom the interest was paid, accrued, or |
| |||||||
| |||||||
1 | incurred.
| ||||||
2 | This paragraph shall not apply to the following:
| ||||||
3 | (i) an item of interest paid, accrued, or | ||||||
4 | incurred, directly or indirectly, to a person who | ||||||
5 | is subject in a foreign country or state, other | ||||||
6 | than a state which requires mandatory unitary | ||||||
7 | reporting, to a tax on or measured by net income | ||||||
8 | with respect to such interest; or | ||||||
9 | (ii) an item of interest paid, accrued, or | ||||||
10 | incurred, directly or indirectly, to a person if | ||||||
11 | the taxpayer can establish, based on a | ||||||
12 | preponderance of the evidence, both of the | ||||||
13 | following: | ||||||
14 | (a) the person, during the same taxable | ||||||
15 | year, paid, accrued, or incurred, the interest | ||||||
16 | to a person that is not a related member, and | ||||||
17 | (b) the transaction giving rise to the | ||||||
18 | interest expense between the taxpayer and the | ||||||
19 | person did not have as a principal purpose the | ||||||
20 | avoidance of Illinois income tax, and is paid | ||||||
21 | pursuant to a contract or agreement that | ||||||
22 | reflects an arm's-length interest rate and | ||||||
23 | terms; or
| ||||||
24 | (iii) the taxpayer can establish, based on | ||||||
25 | clear and convincing evidence, that the interest | ||||||
26 | paid, accrued, or incurred relates to a contract or |
| |||||||
| |||||||
1 | agreement entered into at arm's-length rates and | ||||||
2 | terms and the principal purpose for the payment is | ||||||
3 | not federal or Illinois tax avoidance; or
| ||||||
4 | (iv) an item of interest paid, accrued, or | ||||||
5 | incurred, directly or indirectly, to a person if | ||||||
6 | the taxpayer establishes by clear and convincing | ||||||
7 | evidence that the adjustments are unreasonable; or | ||||||
8 | if the taxpayer and the Director agree in writing | ||||||
9 | to the application or use of an alternative method | ||||||
10 | of apportionment under Section 304(f).
| ||||||
11 | Nothing in this subsection shall preclude the | ||||||
12 | Director from making any other adjustment | ||||||
13 | otherwise allowed under Section 404 of this Act for | ||||||
14 | any tax year beginning after the effective date of | ||||||
15 | this amendment provided such adjustment is made | ||||||
16 | pursuant to regulation adopted by the Department | ||||||
17 | and such regulations provide methods and standards | ||||||
18 | by which the Department will utilize its authority | ||||||
19 | under Section 404 of this Act;
| ||||||
20 | (E-13) An amount equal to the amount of intangible | ||||||
21 | expenses and costs otherwise allowed as a deduction in | ||||||
22 | computing base income, and that were paid, accrued, or | ||||||
23 | incurred, directly or indirectly, (i) for taxable | ||||||
24 | years ending on or after December 31, 2004, to a | ||||||
25 | foreign person who would be a member of the same | ||||||
26 | unitary business group but for the fact that the |
| |||||||
| |||||||
1 | foreign person's business activity outside the United | ||||||
2 | States is 80% or more of that person's total business | ||||||
3 | activity and (ii) for taxable years ending on or after | ||||||
4 | December 31, 2008, to a person who would be a member of | ||||||
5 | the same unitary business group but for the fact that | ||||||
6 | the person is prohibited under Section 1501(a)(27) | ||||||
7 | from being included in the unitary business group | ||||||
8 | because he or she is ordinarily required to apportion | ||||||
9 | business income under different subsections of Section | ||||||
10 | 304. The addition modification required by this | ||||||
11 | subparagraph shall be reduced to the extent that | ||||||
12 | dividends were included in base income of the unitary | ||||||
13 | group for the same taxable year and received by the | ||||||
14 | taxpayer or by a member of the taxpayer's unitary | ||||||
15 | business group (including amounts included in gross | ||||||
16 | income pursuant to Sections 951 through 964 of the | ||||||
17 | Internal Revenue Code and amounts included in gross | ||||||
18 | income under Section 78 of the Internal Revenue Code) | ||||||
19 | with respect to the stock of the same person to whom | ||||||
20 | the intangible expenses and costs were directly or | ||||||
21 | indirectly paid, incurred, or accrued. The preceding | ||||||
22 | sentence shall not apply to the extent that the same | ||||||
23 | dividends caused a reduction to the addition | ||||||
24 | modification required under Section 203(b)(2)(E-12) of | ||||||
25 | this Act.
As used in this subparagraph, the term | ||||||
26 | "intangible expenses and costs" includes (1) expenses, |
| |||||||
| |||||||
1 | losses, and costs for, or related to, the direct or | ||||||
2 | indirect acquisition, use, maintenance or management, | ||||||
3 | ownership, sale, exchange, or any other disposition of | ||||||
4 | intangible property; (2) losses incurred, directly or | ||||||
5 | indirectly, from factoring transactions or discounting | ||||||
6 | transactions; (3) royalty, patent, technical, and | ||||||
7 | copyright fees; (4) licensing fees; and (5) other | ||||||
8 | similar expenses and costs.
For purposes of this | ||||||
9 | subparagraph, "intangible property" includes patents, | ||||||
10 | patent applications, trade names, trademarks, service | ||||||
11 | marks, copyrights, mask works, trade secrets, and | ||||||
12 | similar types of intangible assets. | ||||||
13 | This paragraph shall not apply to the following: | ||||||
14 | (i) any item of intangible expenses or costs | ||||||
15 | paid, accrued, or incurred, directly or | ||||||
16 | indirectly, from a transaction with a person who is | ||||||
17 | subject in a foreign country or state, other than a | ||||||
18 | state which requires mandatory unitary reporting, | ||||||
19 | to a tax on or measured by net income with respect | ||||||
20 | to such item; or | ||||||
21 | (ii) any item of intangible expense or cost | ||||||
22 | paid, accrued, or incurred, directly or | ||||||
23 | indirectly, if the taxpayer can establish, based | ||||||
24 | on a preponderance of the evidence, both of the | ||||||
25 | following: | ||||||
26 | (a) the person during the same taxable |
| |||||||
| |||||||
1 | year paid, accrued, or incurred, the | ||||||
2 | intangible expense or cost to a person that is | ||||||
3 | not a related member, and | ||||||
4 | (b) the transaction giving rise to the | ||||||
5 | intangible expense or cost between the | ||||||
6 | taxpayer and the person did not have as a | ||||||
7 | principal purpose the avoidance of Illinois | ||||||
8 | income tax, and is paid pursuant to a contract | ||||||
9 | or agreement that reflects arm's-length terms; | ||||||
10 | or | ||||||
11 | (iii) any item of intangible expense or cost | ||||||
12 | paid, accrued, or incurred, directly or | ||||||
13 | indirectly, from a transaction with a person if the | ||||||
14 | taxpayer establishes by clear and convincing | ||||||
15 | evidence, that the adjustments are unreasonable; | ||||||
16 | or if the taxpayer and the Director agree in | ||||||
17 | writing to the application or use of an alternative | ||||||
18 | method of apportionment under Section 304(f);
| ||||||
19 | Nothing in this subsection shall preclude the | ||||||
20 | Director from making any other adjustment | ||||||
21 | otherwise allowed under Section 404 of this Act for | ||||||
22 | any tax year beginning after the effective date of | ||||||
23 | this amendment provided such adjustment is made | ||||||
24 | pursuant to regulation adopted by the Department | ||||||
25 | and such regulations provide methods and standards | ||||||
26 | by which the Department will utilize its authority |
| |||||||
| |||||||
1 | under Section 404 of this Act;
| ||||||
2 | (E-14) For taxable years ending on or after | ||||||
3 | December 31, 2008, an amount equal to the amount of | ||||||
4 | insurance premium expenses and costs otherwise allowed | ||||||
5 | as a deduction in computing base income, and that were | ||||||
6 | paid, accrued, or incurred, directly or indirectly, to | ||||||
7 | a person who would be a member of the same unitary | ||||||
8 | business group but for the fact that the person is | ||||||
9 | prohibited under Section 1501(a)(27) from being | ||||||
10 | included in the unitary business group because he or | ||||||
11 | she is ordinarily required to apportion business | ||||||
12 | income under different subsections of Section 304. The | ||||||
13 | addition modification required by this subparagraph | ||||||
14 | shall be reduced to the extent that dividends were | ||||||
15 | included in base income of the unitary group for the | ||||||
16 | same taxable year and received by the taxpayer or by a | ||||||
17 | member of the taxpayer's unitary business group | ||||||
18 | (including amounts included in gross income under | ||||||
19 | Sections 951 through 964 of the Internal Revenue Code | ||||||
20 | and amounts included in gross income under Section 78 | ||||||
21 | of the Internal Revenue Code) with respect to the stock | ||||||
22 | of the same person to whom the premiums and costs were | ||||||
23 | directly or indirectly paid, incurred, or accrued. The | ||||||
24 | preceding sentence does not apply to the extent that | ||||||
25 | the same dividends caused a reduction to the addition | ||||||
26 | modification required under Section 203(b)(2)(E-12) or |
| |||||||
| |||||||
1 | Section 203(b)(2)(E-13) of this Act;
| ||||||
2 | (E-15) For taxable years beginning after December | ||||||
3 | 31, 2008, any deduction for dividends paid by a captive | ||||||
4 | real estate investment trust that is allowed to a real | ||||||
5 | estate investment trust under Section 857(b)(2)(B) of | ||||||
6 | the Internal Revenue Code for dividends paid; | ||||||
7 | (E-16) An amount equal to the credit allowable to | ||||||
8 | the taxpayer under Section 218(a) of this Act, | ||||||
9 | determined without regard to Section 218(c) of this | ||||||
10 | Act; | ||||||
11 | (E-17) For taxable years ending on or after | ||||||
12 | December 31, 2017, an amount equal to the deduction | ||||||
13 | allowed under Section 199 of the Internal Revenue Code | ||||||
14 | for the taxable year; | ||||||
15 | (E-18) for taxable years beginning after December | ||||||
16 | 31, 2018, an amount equal to the deduction allowed | ||||||
17 | under Section 250(a)(1)(A) of the Internal Revenue | ||||||
18 | Code for the taxable year. | ||||||
19 | and by deducting from the total so obtained the sum of the | ||||||
20 | following
amounts: | ||||||
21 | (F) An amount equal to the amount of any tax | ||||||
22 | imposed by this Act
which was refunded to the taxpayer | ||||||
23 | and included in such total for the
taxable year; | ||||||
24 | (G) An amount equal to any amount included in such | ||||||
25 | total under
Section 78 of the Internal Revenue Code; | ||||||
26 | (H) In the case of a regulated investment company, |
| |||||||
| |||||||
1 | an amount equal
to the amount of exempt interest | ||||||
2 | dividends as defined in subsection (b)(5) of Section | ||||||
3 | 852 of the Internal Revenue Code, paid to shareholders
| ||||||
4 | for the taxable year; | ||||||
5 | (I) With the exception of any amounts subtracted | ||||||
6 | under subparagraph
(J),
an amount equal to the sum of | ||||||
7 | all amounts disallowed as
deductions by (i) Sections | ||||||
8 | 171(a)(2), and 265(a)(2) and amounts disallowed as
| ||||||
9 | interest expense by Section 291(a)(3) of the Internal | ||||||
10 | Revenue Code, and all amounts of expenses allocable to | ||||||
11 | interest and
disallowed as deductions by Section | ||||||
12 | 265(a)(1) of the Internal Revenue Code;
and (ii) for | ||||||
13 | taxable years
ending on or after August 13, 1999, | ||||||
14 | Sections
171(a)(2), 265,
280C, 291(a)(3), and | ||||||
15 | 832(b)(5)(B)(i) of the Internal Revenue Code, plus, | ||||||
16 | for tax years ending on or after December 31, 2011, | ||||||
17 | amounts disallowed as deductions by Section 45G(e)(3) | ||||||
18 | of the Internal Revenue Code and, for taxable years | ||||||
19 | ending on or after December 31, 2008, any amount | ||||||
20 | included in gross income under Section 87 of the | ||||||
21 | Internal Revenue Code and the policyholders' share of | ||||||
22 | tax-exempt interest of a life insurance company under | ||||||
23 | Section 807(a)(2)(B) of the Internal Revenue Code (in | ||||||
24 | the case of a life insurance company with gross income | ||||||
25 | from a decrease in reserves for the tax year) or | ||||||
26 | Section 807(b)(1)(B) of the Internal Revenue Code (in |
| |||||||
| |||||||
1 | the case of a life insurance company allowed a | ||||||
2 | deduction for an increase in reserves for the tax | ||||||
3 | year); the
provisions of this
subparagraph are exempt | ||||||
4 | from the provisions of Section 250; | ||||||
5 | (J) An amount equal to all amounts included in such | ||||||
6 | total which are
exempt from taxation by this State | ||||||
7 | either by reason of its statutes or
Constitution
or by | ||||||
8 | reason of the Constitution, treaties or statutes of the | ||||||
9 | United States;
provided that, in the case of any | ||||||
10 | statute of this State that exempts income
derived from | ||||||
11 | bonds or other obligations from the tax imposed under | ||||||
12 | this Act,
the amount exempted shall be the interest net | ||||||
13 | of bond premium amortization; | ||||||
14 | (K) An amount equal to those dividends included in | ||||||
15 | such total
which were paid by a corporation which | ||||||
16 | conducts
business operations in a River Edge | ||||||
17 | Redevelopment Zone or zones created under the River | ||||||
18 | Edge Redevelopment Zone Act and conducts substantially | ||||||
19 | all of its
operations in a River Edge Redevelopment | ||||||
20 | Zone or zones. This subparagraph (K) is exempt from the | ||||||
21 | provisions of Section 250; | ||||||
22 | (L) An amount equal to those dividends included in | ||||||
23 | such total that
were paid by a corporation that | ||||||
24 | conducts business operations in a federally
designated | ||||||
25 | Foreign Trade Zone or Sub-Zone and that is designated a | ||||||
26 | High Impact
Business located in Illinois; provided |
| |||||||
| |||||||
1 | that dividends eligible for the
deduction provided in | ||||||
2 | subparagraph (K) of paragraph 2 of this subsection
| ||||||
3 | shall not be eligible for the deduction provided under | ||||||
4 | this subparagraph
(L); | ||||||
5 | (M) For any taxpayer that is a financial | ||||||
6 | organization within the meaning
of Section 304(c) of | ||||||
7 | this Act, an amount included in such total as interest
| ||||||
8 | income from a loan or loans made by such taxpayer to a | ||||||
9 | borrower, to the extent
that such a loan is secured by | ||||||
10 | property which is eligible for the River Edge | ||||||
11 | Redevelopment Zone Investment Credit. To determine the | ||||||
12 | portion of a loan or loans that is
secured by property | ||||||
13 | eligible for a Section 201(f) investment
credit to the | ||||||
14 | borrower, the entire principal amount of the loan or | ||||||
15 | loans
between the taxpayer and the borrower should be | ||||||
16 | divided into the basis of the
Section 201(f) investment | ||||||
17 | credit property which secures the
loan or loans, using | ||||||
18 | for this purpose the original basis of such property on
| ||||||
19 | the date that it was placed in service in the River | ||||||
20 | Edge Redevelopment Zone. The subtraction modification | ||||||
21 | available to the taxpayer in any
year under this | ||||||
22 | subsection shall be that portion of the total interest | ||||||
23 | paid
by the borrower with respect to such loan | ||||||
24 | attributable to the eligible
property as calculated | ||||||
25 | under the previous sentence. This subparagraph (M) is | ||||||
26 | exempt from the provisions of Section 250; |
| |||||||
| |||||||
1 | (M-1) For any taxpayer that is a financial | ||||||
2 | organization within the
meaning of Section 304(c) of | ||||||
3 | this Act, an amount included in such total as
interest | ||||||
4 | income from a loan or loans made by such taxpayer to a | ||||||
5 | borrower,
to the extent that such a loan is secured by | ||||||
6 | property which is eligible for
the High Impact Business | ||||||
7 | Investment Credit. To determine the portion of a
loan | ||||||
8 | or loans that is secured by property eligible for a | ||||||
9 | Section 201(h) investment credit to the borrower, the | ||||||
10 | entire principal amount of
the loan or loans between | ||||||
11 | the taxpayer and the borrower should be divided into
| ||||||
12 | the basis of the Section 201(h) investment credit | ||||||
13 | property which
secures the loan or loans, using for | ||||||
14 | this purpose the original basis of such
property on the | ||||||
15 | date that it was placed in service in a federally | ||||||
16 | designated
Foreign Trade Zone or Sub-Zone located in | ||||||
17 | Illinois. No taxpayer that is
eligible for the | ||||||
18 | deduction provided in subparagraph (M) of paragraph | ||||||
19 | (2) of
this subsection shall be eligible for the | ||||||
20 | deduction provided under this
subparagraph (M-1). The | ||||||
21 | subtraction modification available to taxpayers in
any | ||||||
22 | year under this subsection shall be that portion of the | ||||||
23 | total interest
paid by the borrower with respect to | ||||||
24 | such loan attributable to the eligible
property as | ||||||
25 | calculated under the previous sentence; | ||||||
26 | (N) Two times any contribution made during the |
| |||||||
| |||||||
1 | taxable year to a
designated zone organization to the | ||||||
2 | extent that the contribution (i)
qualifies as a | ||||||
3 | charitable contribution under subsection (c) of | ||||||
4 | Section 170
of the Internal Revenue Code and (ii) must, | ||||||
5 | by its terms, be used for a
project approved by the | ||||||
6 | Department of Commerce and Economic Opportunity under | ||||||
7 | Section 11 of the Illinois Enterprise Zone Act or under | ||||||
8 | Section 10-10 of the River Edge Redevelopment Zone Act. | ||||||
9 | This subparagraph (N) is exempt from the provisions of | ||||||
10 | Section 250; | ||||||
11 | (O) An amount equal to: (i) 85% for taxable years | ||||||
12 | ending on or before
December 31, 1992, or, a percentage | ||||||
13 | equal to the percentage allowable under
Section | ||||||
14 | 243(a)(1) of the Internal Revenue Code of 1986 for | ||||||
15 | taxable years ending
after December 31, 1992, of the | ||||||
16 | amount by which dividends included in taxable
income | ||||||
17 | and received from a corporation that is not created or | ||||||
18 | organized under
the laws of the United States or any | ||||||
19 | state or political subdivision thereof,
including, for | ||||||
20 | taxable years ending on or after December 31, 1988, | ||||||
21 | dividends
received or deemed received or paid or deemed | ||||||
22 | paid under Sections 951 through
965 of the Internal | ||||||
23 | Revenue Code, exceed the amount of the modification
| ||||||
24 | provided under subparagraph (G) of paragraph (2) of | ||||||
25 | this subsection (b) which
is related to such dividends, | ||||||
26 | and including, for taxable years ending on or after |
| |||||||
| |||||||
1 | December 31, 2008, dividends received from a captive | ||||||
2 | real estate investment trust; plus (ii) 100% of the | ||||||
3 | amount by which dividends,
included in taxable income | ||||||
4 | and received, including, for taxable years ending on
or | ||||||
5 | after December 31, 1988, dividends received or deemed | ||||||
6 | received or paid or
deemed paid under Sections 951 | ||||||
7 | through 964 of the Internal Revenue Code and including, | ||||||
8 | for taxable years ending on or after December 31, 2008, | ||||||
9 | dividends received from a captive real estate | ||||||
10 | investment trust, from
any such corporation specified | ||||||
11 | in clause (i) that would but for the provisions
of | ||||||
12 | Section 1504(b)(3) of the Internal Revenue Code be | ||||||
13 | treated as a member of
the affiliated group which | ||||||
14 | includes the dividend recipient, exceed the amount
of | ||||||
15 | the modification provided under subparagraph (G) of | ||||||
16 | paragraph (2) of this
subsection (b) which is related | ||||||
17 | to such dividends. This subparagraph (O) is exempt from | ||||||
18 | the provisions of Section 250 of this Act; | ||||||
19 | (P) An amount equal to any contribution made to a | ||||||
20 | job training project
established pursuant to the Tax | ||||||
21 | Increment Allocation Redevelopment Act; | ||||||
22 | (Q) An amount equal to the amount of the deduction | ||||||
23 | used to compute the
federal income tax credit for | ||||||
24 | restoration of substantial amounts held under
claim of | ||||||
25 | right for the taxable year pursuant to Section 1341 of | ||||||
26 | the
Internal Revenue Code; |
| |||||||
| |||||||
1 | (R) On and after July 20, 1999, in the case of an | ||||||
2 | attorney-in-fact with respect to whom an
interinsurer | ||||||
3 | or a reciprocal insurer has made the election under | ||||||
4 | Section 835 of
the Internal Revenue Code, 26 U.S.C. | ||||||
5 | 835, an amount equal to the excess, if
any, of the | ||||||
6 | amounts paid or incurred by that interinsurer or | ||||||
7 | reciprocal insurer
in the taxable year to the | ||||||
8 | attorney-in-fact over the deduction allowed to that
| ||||||
9 | interinsurer or reciprocal insurer with respect to the | ||||||
10 | attorney-in-fact under
Section 835(b) of the Internal | ||||||
11 | Revenue Code for the taxable year; the provisions of | ||||||
12 | this subparagraph are exempt from the provisions of | ||||||
13 | Section 250; | ||||||
14 | (S) For taxable years ending on or after December | ||||||
15 | 31, 1997, in the
case of a Subchapter
S corporation, an | ||||||
16 | amount equal to all amounts of income allocable to a
| ||||||
17 | shareholder subject to the Personal Property Tax | ||||||
18 | Replacement Income Tax imposed
by subsections (c) and | ||||||
19 | (d) of Section 201 of this Act, including amounts
| ||||||
20 | allocable to organizations exempt from federal income | ||||||
21 | tax by reason of Section
501(a) of the Internal Revenue | ||||||
22 | Code. This subparagraph (S) is exempt from
the | ||||||
23 | provisions of Section 250; | ||||||
24 | (T) 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 (T) is exempt from the provisions of | ||||||
7 | Section 250; | ||||||
8 | (U) 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 (E-10), 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 (E-10), 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 (U) is exempt from the | ||||||
24 | provisions of Section 250; | ||||||
25 | (V) 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,
(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, and (iii) any insurance premium | ||||||
15 | income (net of deductions allocable thereto) taken | ||||||
16 | into account for the taxable year with respect to a | ||||||
17 | transaction with a taxpayer that is required to make an | ||||||
18 | addition modification with respect to such transaction | ||||||
19 | under Section 203(a)(2)(D-19), Section | ||||||
20 | 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section | ||||||
21 | 203(d)(2)(D-9), but not to exceed the amount of that | ||||||
22 | addition modification. This subparagraph (V) is exempt | ||||||
23 | from the provisions of Section 250;
| ||||||
24 | (W) An amount equal to the interest income taken | ||||||
25 | into account for the taxable year (net of the | ||||||
26 | deductions allocable thereto) with respect to |
| |||||||
| |||||||
1 | transactions with (i) a foreign person who would be a | ||||||
2 | member of the taxpayer's unitary business group but for | ||||||
3 | the fact that the foreign person's business activity | ||||||
4 | outside the United States is 80% or more of that | ||||||
5 | person's total business activity and (ii) for taxable | ||||||
6 | years ending on or after December 31, 2008, to a person | ||||||
7 | who would be a member of the same unitary business | ||||||
8 | group but for the fact that the person is prohibited | ||||||
9 | under Section 1501(a)(27) from being included in the | ||||||
10 | unitary business group because he or she is ordinarily | ||||||
11 | required to apportion business income under different | ||||||
12 | subsections of Section 304, but not to exceed the | ||||||
13 | addition modification required to be made for the same | ||||||
14 | taxable year under Section 203(b)(2)(E-12) for | ||||||
15 | interest paid, accrued, or incurred, directly or | ||||||
16 | indirectly, to the same person. This subparagraph (W) | ||||||
17 | is exempt from the provisions of Section 250;
| ||||||
18 | (X) An amount equal to the income from intangible | ||||||
19 | property taken into account for the taxable year (net | ||||||
20 | of the deductions allocable thereto) with respect to | ||||||
21 | transactions with (i) a foreign person who would be a | ||||||
22 | member of the taxpayer's unitary business group but for | ||||||
23 | the fact that the foreign person's business activity | ||||||
24 | outside the United States is 80% or more of that | ||||||
25 | person's total business activity and (ii) for taxable | ||||||
26 | years ending on or after December 31, 2008, to a person |
| |||||||
| |||||||
1 | who would be a member of the same unitary business | ||||||
2 | group but for the fact that the person is prohibited | ||||||
3 | under Section 1501(a)(27) from being included in the | ||||||
4 | unitary business group because he or she is ordinarily | ||||||
5 | required to apportion business income under different | ||||||
6 | subsections of Section 304, but not to exceed the | ||||||
7 | addition modification required to be made for the same | ||||||
8 | taxable year under Section 203(b)(2)(E-13) for | ||||||
9 | intangible expenses and costs paid, accrued, or | ||||||
10 | incurred, directly or indirectly, to the same foreign | ||||||
11 | person. This subparagraph (X) is exempt from the | ||||||
12 | provisions of Section 250;
| ||||||
13 | (Y) For taxable years ending on or after December | ||||||
14 | 31, 2011, in the case of a taxpayer who was required to | ||||||
15 | add back any insurance premiums under Section | ||||||
16 | 203(b)(2)(E-14), such taxpayer may elect to subtract | ||||||
17 | that part of a reimbursement received from the | ||||||
18 | insurance company equal to the amount of the expense or | ||||||
19 | loss (including expenses incurred by the insurance | ||||||
20 | company) that would have been taken into account as a | ||||||
21 | deduction for federal income tax purposes if the | ||||||
22 | expense or loss had been uninsured. If a taxpayer makes | ||||||
23 | the election provided for by this subparagraph (Y), the | ||||||
24 | insurer to which the premiums were paid must add back | ||||||
25 | to income the amount subtracted by the taxpayer | ||||||
26 | pursuant to this subparagraph (Y). This subparagraph |
| |||||||
| |||||||
1 | (Y) is exempt from the provisions of Section 250; and | ||||||
2 | (Z) The difference between the nondeductible | ||||||
3 | controlled foreign corporation dividends under Section | ||||||
4 | 965(e)(3) of the Internal Revenue Code over the taxable | ||||||
5 | income of the taxpayer, computed without regard to | ||||||
6 | Section 965(e)(2)(A) of the Internal Revenue Code, and | ||||||
7 | without regard to any net operating loss deduction. | ||||||
8 | This subparagraph (Z) is exempt from the provisions of | ||||||
9 | Section 250. | ||||||
10 | (3) Special rule. For purposes of paragraph (2)(A), | ||||||
11 | "gross income"
in the case of a life insurance company, for | ||||||
12 | tax years ending on and after
December 31, 1994,
and prior | ||||||
13 | to December 31, 2011, shall mean the gross investment | ||||||
14 | income for the taxable year and, for tax years ending on or | ||||||
15 | after December 31, 2011, shall mean all amounts included in | ||||||
16 | life insurance gross income under Section 803(a)(3) of the | ||||||
17 | Internal Revenue Code.
| ||||||
18 | (c) Trusts and estates. | ||||||
19 | (1) In general. In the case of a trust or estate, base | ||||||
20 | income means
an amount equal to the taxpayer's taxable | ||||||
21 | income for the taxable year as
modified by paragraph (2). | ||||||
22 | (2) Modifications. Subject to the provisions of | ||||||
23 | paragraph (3), the
taxable income referred to in paragraph | ||||||
24 | (1) shall be modified by adding
thereto the sum of the | ||||||
25 | following amounts: |
| |||||||
| |||||||
1 | (A) An amount equal to all amounts paid or accrued | ||||||
2 | to the taxpayer
as interest or dividends during the | ||||||
3 | taxable year to the extent excluded
from gross income | ||||||
4 | in the computation of taxable income; | ||||||
5 | (B) In the case of (i) an estate, $600; (ii) a | ||||||
6 | trust which, under
its governing instrument, is | ||||||
7 | required to distribute all of its income
currently, | ||||||
8 | $300; and (iii) any other trust, $100, but in each such | ||||||
9 | case,
only to the extent such amount was deducted in | ||||||
10 | the computation of
taxable income; | ||||||
11 | (C) An amount equal to the amount of tax imposed by | ||||||
12 | this Act to the
extent deducted from gross income in | ||||||
13 | the computation of taxable income
for the taxable year; | ||||||
14 | (D) The amount of any net operating loss deduction | ||||||
15 | taken in arriving at
taxable income, other than a net | ||||||
16 | operating loss carried forward from a
taxable year | ||||||
17 | ending prior to December 31, 1986; | ||||||
18 | (E) For taxable years in which a net operating loss | ||||||
19 | carryback or
carryforward from a taxable year ending | ||||||
20 | prior to December 31, 1986 is an
element of taxable | ||||||
21 | income under paragraph (1) of subsection (e) or | ||||||
22 | subparagraph
(E) of paragraph (2) of subsection (e), | ||||||
23 | the amount by which addition
modifications other than | ||||||
24 | those provided by this subparagraph (E) exceeded
| ||||||
25 | subtraction modifications in such taxable year, with | ||||||
26 | the following limitations
applied in the order that |
| |||||||
| |||||||
1 | they are listed: | ||||||
2 | (i) the addition modification relating to the | ||||||
3 | net operating loss
carried back or forward to the | ||||||
4 | taxable year from any taxable year ending
prior to | ||||||
5 | December 31, 1986 shall be reduced by the amount of | ||||||
6 | addition
modification under this subparagraph (E) | ||||||
7 | which related to that net
operating loss and which | ||||||
8 | was taken into account in calculating the base
| ||||||
9 | income of an earlier taxable year, and | ||||||
10 | (ii) the addition modification relating to the | ||||||
11 | net operating loss
carried back or forward to the | ||||||
12 | taxable year from any taxable year ending
prior to | ||||||
13 | December 31, 1986 shall not exceed the amount of | ||||||
14 | such carryback or
carryforward; | ||||||
15 | For taxable years in which there is a net operating | ||||||
16 | loss carryback or
carryforward from more than one other | ||||||
17 | taxable year ending prior to December
31, 1986, the | ||||||
18 | addition modification provided in this subparagraph | ||||||
19 | (E) shall
be the sum of the amounts computed | ||||||
20 | independently under the preceding
provisions of this | ||||||
21 | subparagraph (E) for each such taxable year; | ||||||
22 | (F) For taxable years ending on or after January 1, | ||||||
23 | 1989, an amount
equal to the tax deducted pursuant to | ||||||
24 | Section 164 of the Internal Revenue
Code if the trust | ||||||
25 | or estate is claiming the same tax for purposes of the
| ||||||
26 | Illinois foreign tax credit under Section 601 of this |
| |||||||
| |||||||
1 | Act; | ||||||
2 | (G) An amount equal to the amount of the capital | ||||||
3 | gain deduction
allowable under the Internal Revenue | ||||||
4 | Code, to the extent deducted from
gross income in the | ||||||
5 | computation of taxable income; | ||||||
6 | (G-5) For taxable years ending after December 31, | ||||||
7 | 1997, an
amount equal to any eligible remediation costs | ||||||
8 | that the trust or estate
deducted in computing adjusted | ||||||
9 | gross income and for which the trust
or estate claims a | ||||||
10 | credit under subsection (l) of Section 201; | ||||||
11 | (G-10) For taxable years 2001 and thereafter, an | ||||||
12 | amount equal to the
bonus depreciation deduction taken | ||||||
13 | on the taxpayer's federal income tax return for the | ||||||
14 | taxable
year under subsection (k) of Section 168 of the | ||||||
15 | Internal Revenue Code; and | ||||||
16 | (G-11) If the taxpayer sells, transfers, abandons, | ||||||
17 | or otherwise disposes of property for which the | ||||||
18 | taxpayer was required in any taxable year to
make an | ||||||
19 | addition modification under subparagraph (G-10), then | ||||||
20 | an amount equal
to the aggregate amount of the | ||||||
21 | deductions taken in all taxable
years under | ||||||
22 | subparagraph (R) with respect to that property. | ||||||
23 | If the taxpayer continues to own property through | ||||||
24 | the last day of the last tax year for which the | ||||||
25 | taxpayer may claim a depreciation deduction for | ||||||
26 | federal income tax purposes and for which the taxpayer |
| |||||||
| |||||||
1 | was allowed in any taxable year to make a subtraction | ||||||
2 | modification under subparagraph (R), then an amount | ||||||
3 | equal to that subtraction modification.
| ||||||
4 | The taxpayer is required to make the addition | ||||||
5 | modification under this
subparagraph
only once with | ||||||
6 | respect to any one piece of property; | ||||||
7 | (G-12) An amount equal to the amount otherwise | ||||||
8 | allowed as a deduction in computing base income for | ||||||
9 | interest paid, accrued, or incurred, directly or | ||||||
10 | indirectly, (i) for taxable years ending on or after | ||||||
11 | December 31, 2004, to a foreign person who would be a | ||||||
12 | member of the same unitary business group but for the | ||||||
13 | fact that the foreign person's business activity | ||||||
14 | outside the United States is 80% or more of the foreign | ||||||
15 | person's total business activity and (ii) for taxable | ||||||
16 | years ending on or after December 31, 2008, to a person | ||||||
17 | who would be a member of the same unitary business | ||||||
18 | group but for the fact that the person is prohibited | ||||||
19 | under Section 1501(a)(27) from being included in the | ||||||
20 | unitary business group because he or she is ordinarily | ||||||
21 | required to apportion business income under different | ||||||
22 | subsections of Section 304. The addition modification | ||||||
23 | required by this subparagraph shall be reduced to the | ||||||
24 | extent that dividends were included in base income of | ||||||
25 | the unitary group for the same taxable year and | ||||||
26 | received by the taxpayer or by a member of the |
| |||||||
| |||||||
1 | taxpayer's unitary business group (including amounts | ||||||
2 | included in gross income pursuant to Sections 951 | ||||||
3 | through 964 of the Internal Revenue Code and amounts | ||||||
4 | included in gross income under Section 78 of the | ||||||
5 | Internal Revenue Code) with respect to the stock of the | ||||||
6 | same person to whom the interest was paid, accrued, or | ||||||
7 | incurred.
| ||||||
8 | This paragraph shall not apply to the following:
| ||||||
9 | (i) an item of interest paid, accrued, or | ||||||
10 | incurred, directly or indirectly, to a person who | ||||||
11 | is subject in a foreign country or state, other | ||||||
12 | than a state which requires mandatory unitary | ||||||
13 | reporting, to a tax on or measured by net income | ||||||
14 | with respect to such interest; or | ||||||
15 | (ii) an item of interest paid, accrued, or | ||||||
16 | incurred, directly or indirectly, to a person if | ||||||
17 | the taxpayer can establish, based on a | ||||||
18 | preponderance of the evidence, both of the | ||||||
19 | following: | ||||||
20 | (a) the person, during the same taxable | ||||||
21 | year, paid, accrued, or incurred, the interest | ||||||
22 | to a person that is not a related member, and | ||||||
23 | (b) the transaction giving rise to the | ||||||
24 | interest expense between the taxpayer and the | ||||||
25 | person did not have as a principal purpose the | ||||||
26 | avoidance of Illinois income tax, and is paid |
| |||||||
| |||||||
1 | pursuant to a contract or agreement that | ||||||
2 | reflects an arm's-length interest rate and | ||||||
3 | terms; or
| ||||||
4 | (iii) the taxpayer can establish, based on | ||||||
5 | clear and convincing evidence, that the interest | ||||||
6 | paid, accrued, or incurred relates to a contract or | ||||||
7 | agreement entered into at arm's-length rates and | ||||||
8 | terms and the principal purpose for the payment is | ||||||
9 | not federal or Illinois tax avoidance; or
| ||||||
10 | (iv) an item of interest paid, accrued, or | ||||||
11 | incurred, directly or indirectly, to a person if | ||||||
12 | the taxpayer establishes by clear and convincing | ||||||
13 | evidence that the adjustments are unreasonable; or | ||||||
14 | if the taxpayer and the Director agree in writing | ||||||
15 | to the application or use of an alternative method | ||||||
16 | of apportionment under Section 304(f).
| ||||||
17 | Nothing in this subsection shall preclude the | ||||||
18 | Director from making any other adjustment | ||||||
19 | otherwise allowed under Section 404 of this Act for | ||||||
20 | any tax year beginning after the effective date of | ||||||
21 | this amendment provided such adjustment is made | ||||||
22 | pursuant to regulation adopted by the Department | ||||||
23 | and such regulations provide methods and standards | ||||||
24 | by which the Department will utilize its authority | ||||||
25 | under Section 404 of this Act;
| ||||||
26 | (G-13) An amount equal to the amount of intangible |
| |||||||
| |||||||
1 | expenses and costs otherwise allowed as a deduction in | ||||||
2 | computing base income, and that were paid, accrued, or | ||||||
3 | incurred, directly or indirectly, (i) for taxable | ||||||
4 | years ending on or after December 31, 2004, to a | ||||||
5 | foreign person who would be a member of the same | ||||||
6 | unitary business group but for the fact that the | ||||||
7 | foreign person's business activity outside the United | ||||||
8 | States is 80% or more of that person's total business | ||||||
9 | activity and (ii) for taxable years ending on or after | ||||||
10 | December 31, 2008, to a person who would be a member of | ||||||
11 | the same unitary business group but for the fact that | ||||||
12 | the person is prohibited under Section 1501(a)(27) | ||||||
13 | from being included in the unitary business group | ||||||
14 | because he or she is ordinarily required to apportion | ||||||
15 | business income under different subsections of Section | ||||||
16 | 304. The addition modification required by this | ||||||
17 | subparagraph shall be reduced to the extent that | ||||||
18 | dividends were included in base income of the unitary | ||||||
19 | group for the same taxable year and received by the | ||||||
20 | taxpayer or by a member of the taxpayer's unitary | ||||||
21 | business group (including amounts included in gross | ||||||
22 | income pursuant to Sections 951 through 964 of the | ||||||
23 | Internal Revenue Code and amounts included in gross | ||||||
24 | income under Section 78 of the Internal Revenue Code) | ||||||
25 | with respect to the stock of the same person to whom | ||||||
26 | the intangible expenses and costs were directly or |
| |||||||
| |||||||
1 | indirectly paid, incurred, or accrued. The preceding | ||||||
2 | sentence shall not apply to the extent that the same | ||||||
3 | dividends caused a reduction to the addition | ||||||
4 | modification required under Section 203(c)(2)(G-12) of | ||||||
5 | this Act. As used in this subparagraph, the term | ||||||
6 | "intangible expenses and costs" includes: (1) | ||||||
7 | expenses, losses, and costs for or related to the | ||||||
8 | direct or indirect acquisition, use, maintenance or | ||||||
9 | management, ownership, sale, exchange, or any other | ||||||
10 | disposition of intangible property; (2) losses | ||||||
11 | incurred, directly or indirectly, from factoring | ||||||
12 | transactions or discounting transactions; (3) royalty, | ||||||
13 | patent, technical, and copyright fees; (4) licensing | ||||||
14 | fees; and (5) other similar expenses and costs. For | ||||||
15 | purposes of this subparagraph, "intangible property" | ||||||
16 | includes patents, patent applications, trade names, | ||||||
17 | trademarks, service marks, copyrights, mask works, | ||||||
18 | trade secrets, and similar types of intangible assets. | ||||||
19 | This paragraph shall not apply to the following: | ||||||
20 | (i) any item of intangible expenses or costs | ||||||
21 | paid, accrued, or incurred, directly or | ||||||
22 | indirectly, from a transaction with a person who is | ||||||
23 | subject in a foreign country or state, other than a | ||||||
24 | state which requires mandatory unitary reporting, | ||||||
25 | to a tax on or measured by net income with respect | ||||||
26 | to such item; or |
| |||||||
| |||||||
1 | (ii) any item of intangible expense or cost | ||||||
2 | paid, accrued, or incurred, directly or | ||||||
3 | indirectly, if the taxpayer can establish, based | ||||||
4 | on a preponderance of the evidence, both of the | ||||||
5 | following: | ||||||
6 | (a) the person during the same taxable | ||||||
7 | year paid, accrued, or incurred, the | ||||||
8 | intangible expense or cost to a person that is | ||||||
9 | not a related member, and | ||||||
10 | (b) the transaction giving rise to the | ||||||
11 | intangible expense or cost between the | ||||||
12 | taxpayer and the person did not have as a | ||||||
13 | principal purpose the avoidance of Illinois | ||||||
14 | income tax, and is paid pursuant to a contract | ||||||
15 | or agreement that reflects arm's-length terms; | ||||||
16 | or | ||||||
17 | (iii) any item of intangible expense or cost | ||||||
18 | paid, accrued, or incurred, directly or | ||||||
19 | indirectly, from a transaction with a person if the | ||||||
20 | taxpayer establishes by clear and convincing | ||||||
21 | evidence, that the adjustments are unreasonable; | ||||||
22 | or if the taxpayer and the Director agree in | ||||||
23 | writing to the application or use of an alternative | ||||||
24 | method of apportionment under Section 304(f);
| ||||||
25 | Nothing in this subsection shall preclude the | ||||||
26 | Director from making any other adjustment |
| |||||||
| |||||||
1 | otherwise allowed under Section 404 of this Act for | ||||||
2 | any tax year beginning after the effective date of | ||||||
3 | this amendment provided such adjustment is made | ||||||
4 | pursuant to regulation adopted by the Department | ||||||
5 | and such regulations provide methods and standards | ||||||
6 | by which the Department will utilize its authority | ||||||
7 | under Section 404 of this Act;
| ||||||
8 | (G-14) For taxable years ending on or after | ||||||
9 | December 31, 2008, an amount equal to the amount of | ||||||
10 | insurance premium expenses and costs otherwise allowed | ||||||
11 | as a deduction in computing base income, and that were | ||||||
12 | paid, accrued, or incurred, directly or indirectly, to | ||||||
13 | a person who would be a member of the same unitary | ||||||
14 | business group but for the fact that the person is | ||||||
15 | prohibited under Section 1501(a)(27) from being | ||||||
16 | included in the unitary business group because he or | ||||||
17 | she is ordinarily required to apportion business | ||||||
18 | income under different subsections of Section 304. The | ||||||
19 | addition modification required by this subparagraph | ||||||
20 | shall be reduced to the extent that dividends were | ||||||
21 | included in base income of the unitary group for the | ||||||
22 | same taxable year and received by the taxpayer or by a | ||||||
23 | member of the taxpayer's unitary business group | ||||||
24 | (including amounts included in gross income under | ||||||
25 | Sections 951 through 964 of the Internal Revenue Code | ||||||
26 | and amounts included in gross income under Section 78 |
| |||||||
| |||||||
1 | of the Internal Revenue Code) with respect to the stock | ||||||
2 | of the same person to whom the premiums and costs were | ||||||
3 | directly or indirectly paid, incurred, or accrued. The | ||||||
4 | preceding sentence does not apply to the extent that | ||||||
5 | the same dividends caused a reduction to the addition | ||||||
6 | modification required under Section 203(c)(2)(G-12) or | ||||||
7 | Section 203(c)(2)(G-13) of this Act; | ||||||
8 | (G-15) An amount equal to the credit allowable to | ||||||
9 | the taxpayer under Section 218(a) of this Act, | ||||||
10 | determined without regard to Section 218(c) of this | ||||||
11 | Act; | ||||||
12 | (G-16) For taxable years ending on or after | ||||||
13 | December 31, 2017, an amount equal to the deduction | ||||||
14 | allowed under Section 199 of the Internal Revenue Code | ||||||
15 | for the taxable year; | ||||||
16 | and by deducting from the total so obtained the sum of the | ||||||
17 | following
amounts: | ||||||
18 | (H) An amount equal to all amounts included in such | ||||||
19 | total pursuant
to the provisions of Sections 402(a), | ||||||
20 | 402(c), 403(a), 403(b), 406(a), 407(a)
and 408 of the | ||||||
21 | Internal Revenue Code or included in such total as
| ||||||
22 | distributions under the provisions of any retirement | ||||||
23 | or disability plan for
employees of any governmental | ||||||
24 | agency or unit, or retirement payments to
retired | ||||||
25 | partners, which payments are excluded in computing net | ||||||
26 | earnings
from self employment by Section 1402 of the |
| |||||||
| |||||||
1 | Internal Revenue Code and
regulations adopted pursuant | ||||||
2 | thereto; | ||||||
3 | (I) The valuation limitation amount; | ||||||
4 | (J) An amount equal to the amount of any tax | ||||||
5 | imposed by this Act
which was refunded to the taxpayer | ||||||
6 | and included in such total for the
taxable year; | ||||||
7 | (K) An amount equal to all amounts included in | ||||||
8 | taxable income as
modified by subparagraphs (A), (B), | ||||||
9 | (C), (D), (E), (F) and (G) which
are exempt from | ||||||
10 | taxation by this State either by reason of its statutes | ||||||
11 | or
Constitution
or by reason of the Constitution, | ||||||
12 | treaties or statutes of the United States;
provided | ||||||
13 | that, in the case of any statute of this State that | ||||||
14 | exempts income
derived from bonds or other obligations | ||||||
15 | from the tax imposed under this Act,
the amount | ||||||
16 | exempted shall be the interest net of bond premium | ||||||
17 | amortization; | ||||||
18 | (L) With the exception of any amounts subtracted | ||||||
19 | under subparagraph
(K),
an amount equal to the sum of | ||||||
20 | all amounts disallowed as
deductions by (i) Sections | ||||||
21 | 171(a)(2) and 265(a)(2) of the Internal Revenue
Code, | ||||||
22 | and all amounts of expenses allocable
to interest and | ||||||
23 | disallowed as deductions by Section 265(a)(1) 265(1) | ||||||
24 | of the Internal
Revenue Code;
and (ii) for taxable | ||||||
25 | years
ending on or after August 13, 1999, Sections
| ||||||
26 | 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of the |
| |||||||
| |||||||
1 | Internal Revenue Code, plus, (iii) for taxable years | ||||||
2 | ending on or after December 31, 2011, Section 45G(e)(3) | ||||||
3 | of the Internal Revenue Code and, for taxable years | ||||||
4 | ending on or after December 31, 2008, any amount | ||||||
5 | included in gross income under Section 87 of the | ||||||
6 | Internal Revenue Code; the provisions of this
| ||||||
7 | subparagraph are exempt from the provisions of Section | ||||||
8 | 250; | ||||||
9 | (M) 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 (M) is exempt from the | ||||||
16 | provisions of Section 250; | ||||||
17 | (N) An amount equal to any contribution made to a | ||||||
18 | job training
project established pursuant to the Tax | ||||||
19 | Increment Allocation
Redevelopment Act; | ||||||
20 | (O) An amount equal to those dividends included in | ||||||
21 | such total
that were paid by a corporation that | ||||||
22 | conducts business operations in a
federally designated | ||||||
23 | Foreign Trade Zone or Sub-Zone and that is designated
a | ||||||
24 | High Impact Business located in Illinois; provided | ||||||
25 | that dividends eligible
for the deduction provided in | ||||||
26 | subparagraph (M) of paragraph (2) of this
subsection |
| |||||||
| |||||||
1 | shall not be eligible for the deduction provided under | ||||||
2 | this
subparagraph (O); | ||||||
3 | (P) An amount equal to the amount of the deduction | ||||||
4 | used to compute the
federal income tax credit for | ||||||
5 | restoration of substantial amounts held under
claim of | ||||||
6 | right for the taxable year pursuant to Section 1341 of | ||||||
7 | the
Internal Revenue Code; | ||||||
8 | (Q) For taxable year 1999 and thereafter, an amount | ||||||
9 | equal to the
amount of any
(i) distributions, to the | ||||||
10 | extent includible in gross income for
federal income | ||||||
11 | tax purposes, made to the taxpayer because of
his or | ||||||
12 | her status as a victim of
persecution for racial or | ||||||
13 | religious reasons by Nazi Germany or any other Axis
| ||||||
14 | regime or as an heir of the victim and (ii) items
of | ||||||
15 | income, to the extent
includible in gross income for | ||||||
16 | federal income tax purposes, attributable to,
derived | ||||||
17 | from or in any way related to assets stolen from, | ||||||
18 | hidden from, or
otherwise lost to a victim of
| ||||||
19 | persecution for racial or religious reasons by Nazi
| ||||||
20 | Germany or any other Axis regime
immediately prior to, | ||||||
21 | during, and immediately after World War II, including,
| ||||||
22 | but
not limited to, interest on the proceeds receivable | ||||||
23 | as insurance
under policies issued to a victim of | ||||||
24 | persecution for racial or religious
reasons by Nazi | ||||||
25 | Germany or any other Axis regime by European insurance
| ||||||
26 | companies
immediately prior to and during World War II;
|
| |||||||
| |||||||
1 | provided, however, this subtraction from federal | ||||||
2 | adjusted gross income does not
apply to assets acquired | ||||||
3 | with such assets or with the proceeds from the sale of
| ||||||
4 | such assets; provided, further, this paragraph shall | ||||||
5 | only apply to a taxpayer
who was the first recipient of | ||||||
6 | such assets after their recovery and who is a
victim of
| ||||||
7 | persecution for racial or religious reasons
by Nazi | ||||||
8 | Germany or any other Axis regime or as an heir of the | ||||||
9 | victim. The
amount of and the eligibility for any | ||||||
10 | public assistance, benefit, or
similar entitlement is | ||||||
11 | not affected by the inclusion of items (i) and (ii) of
| ||||||
12 | this paragraph in gross income for federal income tax | ||||||
13 | purposes.
This paragraph is exempt from the provisions | ||||||
14 | of Section 250; | ||||||
15 | (R) For taxable years 2001 and thereafter, for the | ||||||
16 | taxable year in
which the bonus depreciation deduction
| ||||||
17 | is taken on the taxpayer's federal income tax return | ||||||
18 | under
subsection (k) of Section 168 of the Internal | ||||||
19 | Revenue Code and for each
applicable taxable year | ||||||
20 | thereafter, an amount equal to "x", where: | ||||||
21 | (1) "y" equals the amount of the depreciation | ||||||
22 | deduction taken for the
taxable year
on the | ||||||
23 | taxpayer's federal income tax return on property | ||||||
24 | for which the bonus
depreciation deduction
was | ||||||
25 | taken in any year under subsection (k) of Section | ||||||
26 | 168 of the Internal
Revenue Code, but not including |
| |||||||
| |||||||
1 | the bonus depreciation deduction; | ||||||
2 | (2) for taxable years ending on or before | ||||||
3 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
4 | and then divided by 70 (or "y"
multiplied by | ||||||
5 | 0.429); and | ||||||
6 | (3) for taxable years ending after December | ||||||
7 | 31, 2005: | ||||||
8 | (i) for property on which a bonus | ||||||
9 | depreciation deduction of 30% of the adjusted | ||||||
10 | basis was taken, "x" equals "y" multiplied by | ||||||
11 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
12 | 0.429); and | ||||||
13 | (ii) for property on which a bonus | ||||||
14 | depreciation deduction of 50% of the adjusted | ||||||
15 | basis was taken, "x" equals "y" multiplied by | ||||||
16 | 1.0. | ||||||
17 | The aggregate amount deducted under this | ||||||
18 | subparagraph in all taxable
years for any one piece of | ||||||
19 | property may not exceed the amount of the bonus
| ||||||
20 | depreciation deduction
taken on that property on the | ||||||
21 | taxpayer's federal income tax return under
subsection | ||||||
22 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
23 | subparagraph (R) is exempt from the provisions of | ||||||
24 | Section 250; | ||||||
25 | (S) If the taxpayer sells, transfers, abandons, or | ||||||
26 | otherwise disposes of
property for which the taxpayer |
| |||||||
| |||||||
1 | was required in any taxable year to make an
addition | ||||||
2 | modification under subparagraph (G-10), then an amount | ||||||
3 | equal to that
addition modification. | ||||||
4 | If the taxpayer continues to own property through | ||||||
5 | the last day of the last tax year for which the | ||||||
6 | taxpayer may claim a depreciation deduction for | ||||||
7 | federal income tax purposes and for which the taxpayer | ||||||
8 | was required in any taxable year to make an addition | ||||||
9 | modification under subparagraph (G-10), then an amount | ||||||
10 | equal to that addition modification.
| ||||||
11 | The taxpayer is allowed to take the deduction under | ||||||
12 | this subparagraph
only once with respect to any one | ||||||
13 | piece of property. | ||||||
14 | This subparagraph (S) is exempt from the | ||||||
15 | provisions of Section 250; | ||||||
16 | (T) The amount of (i) any interest income (net of | ||||||
17 | the deductions allocable thereto) taken into account | ||||||
18 | for the taxable year with respect to a transaction with | ||||||
19 | a taxpayer that is required to make an addition | ||||||
20 | modification with respect to such transaction under | ||||||
21 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
22 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
23 | the amount of such addition modification and
(ii) any | ||||||
24 | income from intangible property (net of the deductions | ||||||
25 | allocable thereto) taken into account for the taxable | ||||||
26 | year with respect to a transaction with a taxpayer that |
| |||||||
| |||||||
1 | is required to make an addition modification with | ||||||
2 | respect to such transaction under Section | ||||||
3 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
4 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
5 | addition modification. This subparagraph (T) is exempt | ||||||
6 | from the provisions of Section 250;
| ||||||
7 | (U) An amount equal to the interest income taken | ||||||
8 | into account for the taxable year (net of the | ||||||
9 | deductions allocable thereto) with respect to | ||||||
10 | transactions with (i) a foreign person who would be a | ||||||
11 | member of the taxpayer's unitary business group but for | ||||||
12 | the fact the foreign person's business activity | ||||||
13 | outside the United States is 80% or more of that | ||||||
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, but not to exceed the | ||||||
22 | addition modification required to be made for the same | ||||||
23 | taxable year under Section 203(c)(2)(G-12) for | ||||||
24 | interest paid, accrued, or incurred, directly or | ||||||
25 | indirectly, to the same person. This subparagraph (U) | ||||||
26 | is exempt from the provisions of Section 250; |
| |||||||
| |||||||
1 | (V) An amount equal to the income from intangible | ||||||
2 | property taken into account for the taxable year (net | ||||||
3 | of the 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 that 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-13) for | ||||||
18 | intangible expenses and costs paid, accrued, or | ||||||
19 | incurred, directly or indirectly, to the same foreign | ||||||
20 | person. This subparagraph (V) is exempt from the | ||||||
21 | provisions of Section 250;
| ||||||
22 | (W) in the case of an estate, an amount equal to | ||||||
23 | all amounts included in such total pursuant to the | ||||||
24 | provisions of Section 111 of the Internal Revenue Code | ||||||
25 | as a recovery of items previously deducted by the | ||||||
26 | decedent from adjusted gross income in the computation |
| |||||||
| |||||||
1 | of taxable income. This subparagraph (W) is exempt from | ||||||
2 | Section 250; | ||||||
3 | (X) an amount equal to the refund included in such | ||||||
4 | total of any tax deducted for federal income tax | ||||||
5 | purposes, to the extent that deduction was added back | ||||||
6 | under subparagraph (F). This subparagraph (X) is | ||||||
7 | exempt from the provisions of Section 250; and | ||||||
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(c)(2)(G-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) For taxable years beginning after December 31, | ||||||
24 | 2018 and before January 1, 2026, the amount of excess | ||||||
25 | business loss of the taxpayer disallowed as a deduction | ||||||
26 | by Section 461(l)(1)(B) of the Internal Revenue Code. |
| |||||||
| |||||||
1 | (3) Limitation. The amount of any modification | ||||||
2 | otherwise required
under this subsection shall, under | ||||||
3 | regulations prescribed by the
Department, be adjusted by | ||||||
4 | any amounts included therein which were
properly paid, | ||||||
5 | credited, or required to be distributed, or permanently set
| ||||||
6 | aside for charitable purposes pursuant to Internal Revenue | ||||||
7 | Code Section
642(c) during the taxable year.
| ||||||
8 | (d) Partnerships. | ||||||
9 | (1) In general. In the case of a partnership, base | ||||||
10 | income means an
amount equal to the taxpayer's taxable | ||||||
11 | income for the taxable year as
modified by paragraph (2). | ||||||
12 | (2) Modifications. The taxable income referred to in | ||||||
13 | paragraph (1)
shall be modified by adding thereto the sum | ||||||
14 | of the following amounts: | ||||||
15 | (A) An amount equal to all amounts paid or accrued | ||||||
16 | to the taxpayer as
interest or dividends during the | ||||||
17 | taxable year to the extent excluded from
gross income | ||||||
18 | in the computation of taxable income; | ||||||
19 | (B) An amount equal to the amount of tax imposed by | ||||||
20 | this Act to the
extent deducted from gross income for | ||||||
21 | the taxable year; | ||||||
22 | (C) The amount of deductions allowed to the | ||||||
23 | partnership pursuant to
Section 707 (c) of the Internal | ||||||
24 | Revenue Code in calculating its taxable income; | ||||||
25 | (D) An amount equal to the amount of the capital |
| |||||||
| |||||||
1 | gain deduction
allowable under the Internal Revenue | ||||||
2 | Code, to the extent deducted from
gross income in the | ||||||
3 | computation of taxable income; | ||||||
4 | (D-5) For taxable years 2001 and thereafter, an | ||||||
5 | amount equal to the
bonus depreciation deduction taken | ||||||
6 | on the taxpayer's federal income tax return for the | ||||||
7 | taxable
year under subsection (k) of Section 168 of the | ||||||
8 | Internal Revenue Code; | ||||||
9 | (D-6) If the taxpayer sells, transfers, abandons, | ||||||
10 | or otherwise disposes of
property for which the | ||||||
11 | taxpayer was required in any taxable year to make an
| ||||||
12 | addition modification under subparagraph (D-5), then | ||||||
13 | an amount equal to the
aggregate amount of the | ||||||
14 | deductions taken in all taxable years
under | ||||||
15 | subparagraph (O) with respect to that property. | ||||||
16 | If the taxpayer continues to own property through | ||||||
17 | the last day of the last tax year for which the | ||||||
18 | taxpayer may claim a depreciation deduction for | ||||||
19 | federal income tax purposes and for which the taxpayer | ||||||
20 | was allowed in any taxable year to make a subtraction | ||||||
21 | modification under subparagraph (O), then an amount | ||||||
22 | equal to that subtraction modification.
| ||||||
23 | The taxpayer is required to make the addition | ||||||
24 | modification under this
subparagraph
only once with | ||||||
25 | respect to any one piece of property; | ||||||
26 | (D-7) An amount equal to the amount otherwise |
| |||||||
| |||||||
1 | allowed as a deduction in computing base income for | ||||||
2 | interest paid, accrued, or incurred, directly or | ||||||
3 | indirectly, (i) for taxable years ending on or after | ||||||
4 | December 31, 2004, to a foreign person who would be a | ||||||
5 | member of the same unitary business group but for the | ||||||
6 | fact the foreign person's business activity outside | ||||||
7 | the United States is 80% or more of the foreign | ||||||
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. The addition modification | ||||||
16 | required by this subparagraph shall be reduced to the | ||||||
17 | extent that dividends were included in base income of | ||||||
18 | the unitary group for the same taxable year and | ||||||
19 | received by the taxpayer or by a member of the | ||||||
20 | taxpayer's unitary business group (including amounts | ||||||
21 | included in gross income pursuant to Sections 951 | ||||||
22 | through 964 of the Internal Revenue Code and amounts | ||||||
23 | included in gross income under Section 78 of the | ||||||
24 | Internal Revenue Code) with respect to the stock of the | ||||||
25 | same person to whom the interest was paid, accrued, or | ||||||
26 | incurred.
|
| |||||||
| |||||||
1 | This paragraph shall not apply to the following:
| ||||||
2 | (i) an item of interest paid, accrued, or | ||||||
3 | incurred, directly or indirectly, to a person who | ||||||
4 | is subject in a foreign country or state, other | ||||||
5 | than a state which requires mandatory unitary | ||||||
6 | reporting, to a tax on or measured by net income | ||||||
7 | with respect to such interest; or | ||||||
8 | (ii) an item of interest paid, accrued, or | ||||||
9 | incurred, directly or indirectly, to a person if | ||||||
10 | the taxpayer can establish, based on a | ||||||
11 | preponderance of the evidence, both of the | ||||||
12 | following: | ||||||
13 | (a) the person, during the same taxable | ||||||
14 | year, paid, accrued, or incurred, the interest | ||||||
15 | to a person that is not a related member, and | ||||||
16 | (b) the transaction giving rise to the | ||||||
17 | interest expense between the taxpayer and the | ||||||
18 | person did not have as a principal purpose the | ||||||
19 | avoidance of Illinois income tax, and is paid | ||||||
20 | pursuant to a contract or agreement that | ||||||
21 | reflects an arm's-length interest rate and | ||||||
22 | terms; or
| ||||||
23 | (iii) the taxpayer can establish, based on | ||||||
24 | clear and convincing evidence, that the interest | ||||||
25 | paid, accrued, or incurred relates to a contract or | ||||||
26 | agreement entered into at arm's-length rates and |
| |||||||
| |||||||
1 | terms and the principal purpose for the payment is | ||||||
2 | not federal or Illinois tax avoidance; or
| ||||||
3 | (iv) an item of interest paid, accrued, or | ||||||
4 | incurred, directly or indirectly, to a person if | ||||||
5 | the taxpayer establishes by clear and convincing | ||||||
6 | evidence that the adjustments are unreasonable; or | ||||||
7 | if the taxpayer and the Director agree in writing | ||||||
8 | to the application or use of an alternative method | ||||||
9 | of apportionment under Section 304(f).
| ||||||
10 | Nothing in this subsection shall preclude the | ||||||
11 | Director from making any other adjustment | ||||||
12 | otherwise allowed under Section 404 of this Act for | ||||||
13 | any tax year beginning after the effective date of | ||||||
14 | this amendment provided such adjustment is made | ||||||
15 | pursuant to regulation adopted by the Department | ||||||
16 | and such regulations provide methods and standards | ||||||
17 | by which the Department will utilize its authority | ||||||
18 | under Section 404 of this Act; and
| ||||||
19 | (D-8) An amount equal to the amount of intangible | ||||||
20 | expenses and costs otherwise allowed as a deduction in | ||||||
21 | computing base income, and that were paid, accrued, or | ||||||
22 | incurred, directly or indirectly, (i) for taxable | ||||||
23 | years ending on or after December 31, 2004, to a | ||||||
24 | foreign person who would be a member of the same | ||||||
25 | unitary business group but for the fact that the | ||||||
26 | foreign person's business activity outside the United |
| |||||||
| |||||||
1 | States is 80% or more of that person's total business | ||||||
2 | activity and (ii) for taxable years ending on or after | ||||||
3 | December 31, 2008, to a person who would be a member of | ||||||
4 | the same unitary business group but for the fact that | ||||||
5 | the person is prohibited under Section 1501(a)(27) | ||||||
6 | from being included in the unitary business group | ||||||
7 | because he or she is ordinarily required to apportion | ||||||
8 | business income under different subsections of Section | ||||||
9 | 304. The addition modification required by this | ||||||
10 | subparagraph shall be reduced to the extent that | ||||||
11 | dividends were included in base income of the unitary | ||||||
12 | group for the same taxable year and received by the | ||||||
13 | taxpayer or by a member of the taxpayer's unitary | ||||||
14 | business group (including amounts included in gross | ||||||
15 | income pursuant to Sections 951 through 964 of the | ||||||
16 | Internal Revenue Code and amounts included in gross | ||||||
17 | income under Section 78 of the Internal Revenue Code) | ||||||
18 | with respect to the stock of the same person to whom | ||||||
19 | the intangible expenses and costs were directly or | ||||||
20 | indirectly paid, incurred or accrued. The preceding | ||||||
21 | sentence shall not apply to the extent that the same | ||||||
22 | dividends caused a reduction to the addition | ||||||
23 | modification required under Section 203(d)(2)(D-7) of | ||||||
24 | this Act. As used in this subparagraph, the term | ||||||
25 | "intangible expenses and costs" includes (1) expenses, | ||||||
26 | losses, and costs for, or related to, the direct or |
| |||||||
| |||||||
1 | indirect acquisition, use, maintenance or management, | ||||||
2 | ownership, sale, exchange, or any other disposition of | ||||||
3 | intangible property; (2) losses incurred, directly or | ||||||
4 | indirectly, from factoring transactions or discounting | ||||||
5 | transactions; (3) royalty, patent, technical, and | ||||||
6 | copyright fees; (4) licensing fees; and (5) other | ||||||
7 | similar expenses and costs. For purposes of this | ||||||
8 | subparagraph, "intangible property" includes patents, | ||||||
9 | patent applications, trade names, trademarks, service | ||||||
10 | marks, copyrights, mask works, trade secrets, and | ||||||
11 | similar types of intangible assets; | ||||||
12 | This paragraph shall not apply to the following: | ||||||
13 | (i) any item of intangible expenses or costs | ||||||
14 | paid, accrued, or incurred, directly or | ||||||
15 | indirectly, from a transaction with a person who is | ||||||
16 | subject in a foreign country or state, other than a | ||||||
17 | state which requires mandatory unitary reporting, | ||||||
18 | to a tax on or measured by net income with respect | ||||||
19 | to such item; or | ||||||
20 | (ii) any item of intangible expense or cost | ||||||
21 | paid, accrued, or incurred, directly or | ||||||
22 | indirectly, if the taxpayer can establish, based | ||||||
23 | on a preponderance of the evidence, both of the | ||||||
24 | following: | ||||||
25 | (a) the person during the same taxable | ||||||
26 | year paid, accrued, or incurred, the |
| |||||||
| |||||||
1 | intangible expense or cost to a person that is | ||||||
2 | not a related member, and | ||||||
3 | (b) the transaction giving rise to the | ||||||
4 | intangible expense or cost between the | ||||||
5 | taxpayer and the person did not have as a | ||||||
6 | principal purpose the avoidance of Illinois | ||||||
7 | income tax, and is paid pursuant to a contract | ||||||
8 | or agreement that reflects arm's-length terms; | ||||||
9 | or | ||||||
10 | (iii) any item of intangible expense or cost | ||||||
11 | paid, accrued, or incurred, directly or | ||||||
12 | indirectly, from a transaction with a person if the | ||||||
13 | taxpayer establishes by clear and convincing | ||||||
14 | evidence, that the adjustments are unreasonable; | ||||||
15 | or if the taxpayer and the Director agree in | ||||||
16 | writing to the application or use of an alternative | ||||||
17 | method of apportionment under Section 304(f);
| ||||||
18 | Nothing in this subsection shall preclude the | ||||||
19 | Director from making any other adjustment | ||||||
20 | otherwise allowed under Section 404 of this Act for | ||||||
21 | any tax year beginning after the effective date of | ||||||
22 | this amendment provided such adjustment is made | ||||||
23 | pursuant to regulation adopted by the Department | ||||||
24 | and such regulations provide methods and standards | ||||||
25 | by which the Department will utilize its authority | ||||||
26 | under Section 404 of this Act;
|
| |||||||
| |||||||
1 | (D-9) For taxable years ending on or after December | ||||||
2 | 31, 2008, an amount equal to the amount of insurance | ||||||
3 | premium expenses and costs otherwise allowed as a | ||||||
4 | deduction in computing base income, and that were paid, | ||||||
5 | accrued, or incurred, directly or indirectly, to a | ||||||
6 | person who would be a member of the same unitary | ||||||
7 | business group but for the fact that the person is | ||||||
8 | prohibited under Section 1501(a)(27) from being | ||||||
9 | included in the unitary business group because he or | ||||||
10 | she is ordinarily required to apportion business | ||||||
11 | income under different subsections of Section 304. The | ||||||
12 | addition modification required by this subparagraph | ||||||
13 | shall be reduced to the extent that dividends were | ||||||
14 | included in base income of the unitary group for the | ||||||
15 | same taxable year and received by the taxpayer or by a | ||||||
16 | member of the taxpayer's unitary business group | ||||||
17 | (including amounts included in gross income under | ||||||
18 | Sections 951 through 964 of the Internal Revenue Code | ||||||
19 | and amounts included in gross income under Section 78 | ||||||
20 | of the Internal Revenue Code) with respect to the stock | ||||||
21 | of the same person to whom the premiums and costs were | ||||||
22 | directly or indirectly paid, incurred, or accrued. The | ||||||
23 | preceding sentence does not apply to the extent that | ||||||
24 | the same dividends caused a reduction to the addition | ||||||
25 | modification required under Section 203(d)(2)(D-7) or | ||||||
26 | Section 203(d)(2)(D-8) of this Act; |
| |||||||
| |||||||
1 | (D-10) An amount equal to the credit allowable to | ||||||
2 | the taxpayer under Section 218(a) of this Act, | ||||||
3 | determined without regard to Section 218(c) of this | ||||||
4 | Act; | ||||||
5 | (D-11) For taxable years ending on or after | ||||||
6 | December 31, 2017, an amount equal to the deduction | ||||||
7 | allowed under Section 199 of the Internal Revenue Code | ||||||
8 | for the taxable year; | ||||||
9 | and by deducting from the total so obtained the following | ||||||
10 | amounts: | ||||||
11 | (E) The valuation limitation amount; | ||||||
12 | (F) An amount equal to the amount of any tax | ||||||
13 | imposed by this Act which
was refunded to the taxpayer | ||||||
14 | and included in such total for the taxable year; | ||||||
15 | (G) An amount equal to all amounts included in | ||||||
16 | taxable income as
modified by subparagraphs (A), (B), | ||||||
17 | (C) and (D) which are exempt from
taxation by this | ||||||
18 | State either by reason of its statutes or Constitution | ||||||
19 | or
by reason of
the Constitution, treaties or statutes | ||||||
20 | of the United States;
provided that, in the case of any | ||||||
21 | statute of this State that exempts income
derived from | ||||||
22 | bonds or other obligations from the tax imposed under | ||||||
23 | this Act,
the amount exempted shall be the interest net | ||||||
24 | of bond premium amortization; | ||||||
25 | (H) Any income of the partnership which | ||||||
26 | constitutes personal service
income as defined in |
| |||||||
| |||||||
1 | Section 1348(b)(1) of the Internal Revenue Code (as
in | ||||||
2 | effect December 31, 1981) or a reasonable allowance for | ||||||
3 | compensation
paid or accrued for services rendered by | ||||||
4 | partners to the partnership,
whichever is greater; | ||||||
5 | this subparagraph (H) is exempt from the provisions of | ||||||
6 | Section 250; | ||||||
7 | (I) An amount equal to all amounts of income | ||||||
8 | distributable to an entity
subject to the Personal | ||||||
9 | Property Tax Replacement Income Tax imposed by
| ||||||
10 | subsections (c) and (d) of Section 201 of this Act | ||||||
11 | including amounts
distributable to organizations | ||||||
12 | exempt from federal income tax by reason of
Section | ||||||
13 | 501(a) of the Internal Revenue Code; this subparagraph | ||||||
14 | (I) is exempt from the provisions of Section 250; | ||||||
15 | (J) With the exception of any amounts subtracted | ||||||
16 | under subparagraph
(G),
an amount equal to the sum of | ||||||
17 | all amounts disallowed as deductions
by (i) Sections | ||||||
18 | 171(a)(2), and 265(a)(2) 265(2) of the Internal | ||||||
19 | Revenue Code, and all amounts of expenses allocable to
| ||||||
20 | interest and disallowed as deductions by Section | ||||||
21 | 265(a)(1) 265(1) of the Internal
Revenue Code;
and (ii) | ||||||
22 | for taxable years
ending on or after August 13, 1999, | ||||||
23 | Sections
171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of | ||||||
24 | the Internal Revenue Code, plus, (iii) for taxable | ||||||
25 | years ending on or after December 31, 2011, Section | ||||||
26 | 45G(e)(3) of the Internal Revenue Code and, for taxable |
| |||||||
| |||||||
1 | years ending on or after December 31, 2008, any amount | ||||||
2 | included in gross income under Section 87 of the | ||||||
3 | Internal Revenue Code; the provisions of this
| ||||||
4 | subparagraph are exempt from the provisions of Section | ||||||
5 | 250; | ||||||
6 | (K) 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 substantially | ||||||
11 | all of its operations
from a River Edge Redevelopment | ||||||
12 | Zone or zones. This subparagraph (K) is exempt from the | ||||||
13 | provisions of Section 250; | ||||||
14 | (L) An amount equal to any contribution made to a | ||||||
15 | job training project
established pursuant to the Real | ||||||
16 | Property Tax Increment Allocation
Redevelopment Act; | ||||||
17 | (M) 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 (M); | ||||||
26 | (N) An amount equal to the amount of the deduction |
| |||||||
| |||||||
1 | used to compute the
federal income tax credit for | ||||||
2 | restoration of substantial amounts held under
claim of | ||||||
3 | right for the taxable year pursuant to Section 1341 of | ||||||
4 | the
Internal Revenue Code; | ||||||
5 | (O) For taxable years 2001 and thereafter, for the | ||||||
6 | taxable year in
which the bonus depreciation deduction
| ||||||
7 | is taken on the taxpayer's federal income tax return | ||||||
8 | under
subsection (k) of Section 168 of the Internal | ||||||
9 | Revenue Code and for each
applicable taxable year | ||||||
10 | thereafter, an amount equal to "x", where: | ||||||
11 | (1) "y" equals the amount of the depreciation | ||||||
12 | deduction taken for the
taxable year
on the | ||||||
13 | taxpayer's federal income tax return on property | ||||||
14 | for which the bonus
depreciation deduction
was | ||||||
15 | taken in any year under subsection (k) of Section | ||||||
16 | 168 of the Internal
Revenue Code, but not including | ||||||
17 | the bonus depreciation deduction; | ||||||
18 | (2) for taxable years ending on or before | ||||||
19 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
20 | and then divided by 70 (or "y"
multiplied by | ||||||
21 | 0.429); and | ||||||
22 | (3) for taxable years ending after December | ||||||
23 | 31, 2005: | ||||||
24 | (i) for property on which a bonus | ||||||
25 | depreciation deduction of 30% of the adjusted | ||||||
26 | basis was taken, "x" equals "y" multiplied by |
| |||||||
| |||||||
1 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
2 | 0.429); and | ||||||
3 | (ii) for property on which a bonus | ||||||
4 | depreciation deduction of 50% of the adjusted | ||||||
5 | basis was taken, "x" equals "y" multiplied by | ||||||
6 | 1.0. | ||||||
7 | The aggregate amount deducted under this | ||||||
8 | subparagraph in all taxable
years for any one piece of | ||||||
9 | property may not exceed the amount of the bonus
| ||||||
10 | depreciation deduction
taken on that property on the | ||||||
11 | taxpayer's federal income tax return under
subsection | ||||||
12 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
13 | subparagraph (O) is exempt from the provisions of | ||||||
14 | Section 250; | ||||||
15 | (P) If the taxpayer sells, transfers, abandons, or | ||||||
16 | otherwise disposes of
property 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 | If the taxpayer continues to own property through | ||||||
21 | the last day of the last tax year for which the | ||||||
22 | taxpayer may claim a depreciation deduction for | ||||||
23 | federal income tax purposes and for which the taxpayer | ||||||
24 | was required in any taxable year to make an addition | ||||||
25 | modification under subparagraph (D-5), then an amount | ||||||
26 | equal to that addition modification.
|
| |||||||
| |||||||
1 | The taxpayer is allowed to take the deduction under | ||||||
2 | this subparagraph
only once with respect to any one | ||||||
3 | piece of property. | ||||||
4 | This subparagraph (P) is exempt from the | ||||||
5 | provisions of Section 250; | ||||||
6 | (Q) The amount of (i) any interest income (net of | ||||||
7 | the deductions allocable thereto) taken into account | ||||||
8 | for the taxable year with respect to a transaction with | ||||||
9 | a taxpayer that is required to make an addition | ||||||
10 | modification with respect to such transaction under | ||||||
11 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
12 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
13 | the amount of such addition modification and
(ii) any | ||||||
14 | income from intangible property (net of the deductions | ||||||
15 | allocable thereto) taken into account for the taxable | ||||||
16 | year with respect to a transaction with a taxpayer that | ||||||
17 | is required to make an addition modification with | ||||||
18 | respect to such transaction under Section | ||||||
19 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
20 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
21 | addition modification. This subparagraph (Q) is exempt | ||||||
22 | from Section 250;
| ||||||
23 | (R) An amount equal to the interest income taken | ||||||
24 | into account for the taxable year (net of the | ||||||
25 | deductions allocable thereto) with respect to | ||||||
26 | transactions with (i) a foreign person who would be a |
| |||||||
| |||||||
1 | member of the taxpayer's unitary business group but for | ||||||
2 | the fact that the foreign person's business activity | ||||||
3 | outside the United States is 80% or more of that | ||||||
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, but not to exceed the | ||||||
12 | addition modification required to be made for the same | ||||||
13 | taxable year under Section 203(d)(2)(D-7) for interest | ||||||
14 | paid, accrued, or incurred, directly or indirectly, to | ||||||
15 | the same person. This subparagraph (R) is exempt from | ||||||
16 | Section 250; | ||||||
17 | (S) An amount equal to the income from intangible | ||||||
18 | property taken into account for the taxable year (net | ||||||
19 | of the 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(d)(2)(D-8) for | ||||||
8 | intangible expenses and costs paid, accrued, or | ||||||
9 | incurred, directly or indirectly, to the same person. | ||||||
10 | This subparagraph (S) is exempt from Section 250; and
| ||||||
11 | (T) For taxable years ending on or after December | ||||||
12 | 31, 2011, in the case of a taxpayer who was required to | ||||||
13 | add back any insurance premiums under Section | ||||||
14 | 203(d)(2)(D-9), such taxpayer may elect to subtract | ||||||
15 | that part of a reimbursement received from the | ||||||
16 | insurance company equal to the amount of the expense or | ||||||
17 | loss (including expenses incurred by the insurance | ||||||
18 | company) that would have been taken into account as a | ||||||
19 | deduction for federal income tax purposes if the | ||||||
20 | expense or loss had been uninsured. If a taxpayer makes | ||||||
21 | the election provided for by this subparagraph (T), the | ||||||
22 | insurer to which the premiums were paid must add back | ||||||
23 | to income the amount subtracted by the taxpayer | ||||||
24 | pursuant to this subparagraph (T). This subparagraph | ||||||
25 | (T) is exempt from the provisions of Section 250.
|
| |||||||
| |||||||
1 | (e) Gross income; adjusted gross income; taxable income. | ||||||
2 | (1) In general. Subject to the provisions of paragraph | ||||||
3 | (2) and
subsection (b)(3), for purposes of this Section and | ||||||
4 | Section 803(e), a
taxpayer's gross income, adjusted gross | ||||||
5 | income, or taxable income for
the taxable year shall mean | ||||||
6 | the amount of gross income, adjusted gross
income or | ||||||
7 | taxable income properly reportable for federal income tax
| ||||||
8 | purposes for the taxable year under the provisions of the | ||||||
9 | Internal
Revenue Code. Taxable income may be less than | ||||||
10 | zero. However, for taxable
years ending on or after | ||||||
11 | December 31, 1986, net operating loss
carryforwards from | ||||||
12 | taxable years ending prior to December 31, 1986, may not
| ||||||
13 | exceed the sum of federal taxable income for the taxable | ||||||
14 | year before net
operating loss deduction, plus the excess | ||||||
15 | of addition modifications over
subtraction modifications | ||||||
16 | for the taxable year. For taxable years ending
prior to | ||||||
17 | December 31, 1986, taxable income may never be an amount in | ||||||
18 | excess
of the net operating loss for the taxable year as | ||||||
19 | defined in subsections
(c) and (d) of Section 172 of the | ||||||
20 | Internal Revenue Code, provided that when
taxable income of | ||||||
21 | a corporation (other than a Subchapter S corporation),
| ||||||
22 | trust, or estate is less than zero and addition | ||||||
23 | modifications, other than
those provided by subparagraph | ||||||
24 | (E) of paragraph (2) of subsection (b) for
corporations or | ||||||
25 | subparagraph (E) of paragraph (2) of subsection (c) for
| ||||||
26 | trusts and estates, exceed subtraction modifications, an |
| |||||||
| |||||||
1 | addition
modification must be made under those | ||||||
2 | subparagraphs for any other taxable
year to which the | ||||||
3 | taxable income less than zero (net operating loss) is
| ||||||
4 | applied under Section 172 of the Internal Revenue Code or | ||||||
5 | under
subparagraph (E) of paragraph (2) of this subsection | ||||||
6 | (e) applied in
conjunction with Section 172 of the Internal | ||||||
7 | Revenue Code. | ||||||
8 | (2) Special rule. For purposes of paragraph (1) of this | ||||||
9 | subsection,
the taxable income properly reportable for | ||||||
10 | federal income tax purposes
shall mean: | ||||||
11 | (A) Certain life insurance companies. In the case | ||||||
12 | of a life
insurance company subject to the tax imposed | ||||||
13 | by Section 801 of the
Internal Revenue Code, life | ||||||
14 | insurance company taxable income, plus the
amount of | ||||||
15 | distribution from pre-1984 policyholder surplus | ||||||
16 | accounts as
calculated under Section 815a of the | ||||||
17 | Internal Revenue Code; | ||||||
18 | (B) Certain other insurance companies. In the case | ||||||
19 | of mutual
insurance companies subject to the tax | ||||||
20 | imposed by Section 831 of the
Internal Revenue Code, | ||||||
21 | insurance company taxable income; | ||||||
22 | (C) Regulated investment companies. In the case of | ||||||
23 | a regulated
investment company subject to the tax | ||||||
24 | imposed by Section 852 of the
Internal Revenue Code, | ||||||
25 | investment company taxable income; | ||||||
26 | (D) Real estate investment trusts. In the case of a |
| |||||||
| |||||||
1 | real estate
investment trust subject to the tax imposed | ||||||
2 | by Section 857 of the
Internal Revenue Code, real | ||||||
3 | estate investment trust taxable income; | ||||||
4 | (E) Consolidated corporations. In the case of a | ||||||
5 | corporation which
is a member of an affiliated group of | ||||||
6 | corporations filing a consolidated
income tax return | ||||||
7 | for the taxable year for federal income tax purposes,
| ||||||
8 | taxable income determined as if such corporation had | ||||||
9 | filed a separate
return for federal income tax purposes | ||||||
10 | for the taxable year and each
preceding taxable year | ||||||
11 | for which it was a member of an affiliated group.
For | ||||||
12 | purposes of this subparagraph, the taxpayer's separate | ||||||
13 | taxable
income shall be determined as if the election | ||||||
14 | provided by Section
243(b)(2) of the Internal Revenue | ||||||
15 | Code had been in effect for all such years; | ||||||
16 | (F) Cooperatives. In the case of a cooperative | ||||||
17 | corporation or
association, the taxable income of such | ||||||
18 | organization determined in
accordance with the | ||||||
19 | provisions of Section 1381 through 1388 of the
Internal | ||||||
20 | Revenue Code, but without regard to the prohibition | ||||||
21 | against offsetting losses from patronage activities | ||||||
22 | against income from nonpatronage activities; except | ||||||
23 | that a cooperative corporation or association may make | ||||||
24 | an election to follow its federal income tax treatment | ||||||
25 | of patronage losses and nonpatronage losses. In the | ||||||
26 | event such election is made, such losses shall be |
| |||||||
| |||||||
1 | computed and carried over in a manner consistent with | ||||||
2 | subsection (a) of Section 207 of this Act and | ||||||
3 | apportioned by the apportionment factor reported by | ||||||
4 | the cooperative on its Illinois income tax return filed | ||||||
5 | for the taxable year in which the losses are incurred. | ||||||
6 | The election shall be effective for all taxable years | ||||||
7 | with original returns due on or after the date of the | ||||||
8 | election. In addition, the cooperative may file an | ||||||
9 | amended return or returns, as allowed under this Act, | ||||||
10 | to provide that the election shall be effective for | ||||||
11 | losses incurred or carried forward for taxable years | ||||||
12 | occurring prior to the date of the election. Once made, | ||||||
13 | the election may only be revoked upon approval of the | ||||||
14 | Director. The Department shall adopt rules setting | ||||||
15 | forth requirements for documenting the elections and | ||||||
16 | any resulting Illinois net loss and the standards to be | ||||||
17 | used by the Director in evaluating requests to revoke | ||||||
18 | elections. Public Act 96-932 is declaratory of | ||||||
19 | existing law; | ||||||
20 | (G) Subchapter S corporations. In the case of: (i) | ||||||
21 | a Subchapter S
corporation for which there is in effect | ||||||
22 | an election for the taxable year
under Section 1362 of | ||||||
23 | the Internal Revenue Code, the taxable income of such
| ||||||
24 | corporation determined in accordance with Section | ||||||
25 | 1363(b) of the Internal
Revenue Code, except that | ||||||
26 | taxable income shall take into
account those items |
| |||||||
| |||||||
1 | which are required by Section 1363(b)(1) of the
| ||||||
2 | Internal Revenue Code to be separately stated; and (ii) | ||||||
3 | a Subchapter
S corporation for which there is in effect | ||||||
4 | a federal election to opt out of
the provisions of the | ||||||
5 | Subchapter S Revision Act of 1982 and have applied
| ||||||
6 | instead the prior federal Subchapter S rules as in | ||||||
7 | effect on July 1, 1982,
the taxable income of such | ||||||
8 | corporation determined in accordance with the
federal | ||||||
9 | Subchapter S rules as in effect on July 1, 1982; and | ||||||
10 | (H) Partnerships. In the case of a partnership, | ||||||
11 | taxable income
determined in accordance with Section | ||||||
12 | 703 of the Internal Revenue Code,
except that taxable | ||||||
13 | income shall take into account those items which are
| ||||||
14 | required by Section 703(a)(1) to be separately stated | ||||||
15 | but which would be
taken into account by an individual | ||||||
16 | in calculating his taxable income. | ||||||
17 | (3) Recapture of business expenses on disposition of | ||||||
18 | asset or business. Notwithstanding any other law to the | ||||||
19 | contrary, if in prior years income from an asset or | ||||||
20 | business has been classified as business income and in a | ||||||
21 | later year is demonstrated to be non-business income, then | ||||||
22 | all expenses, without limitation, deducted in such later | ||||||
23 | year and in the 2 immediately preceding taxable years | ||||||
24 | related to that asset or business that generated the | ||||||
25 | non-business income shall be added back and recaptured as | ||||||
26 | business income in the year of the disposition of the asset |
| |||||||
| |||||||
1 | or business. Such amount shall be apportioned to Illinois | ||||||
2 | using the greater of the apportionment fraction computed | ||||||
3 | for the business under Section 304 of this Act for the | ||||||
4 | taxable year or the average of the apportionment fractions | ||||||
5 | computed for the business under Section 304 of this Act for | ||||||
6 | the taxable year and for the 2 immediately preceding | ||||||
7 | taxable years.
| ||||||
8 | (f) Valuation limitation amount. | ||||||
9 | (1) In general. The valuation limitation amount | ||||||
10 | referred to in
subsections (a)(2)(G), (c)(2)(I) and | ||||||
11 | (d)(2)(E) is an amount equal to: | ||||||
12 | (A) The sum of the pre-August 1, 1969 appreciation | ||||||
13 | amounts (to the
extent consisting of gain reportable | ||||||
14 | under the provisions of Section
1245 or 1250 of the | ||||||
15 | Internal Revenue Code) for all property in respect
of | ||||||
16 | which such gain was reported for the taxable year; plus | ||||||
17 | (B) The lesser of (i) the sum of the pre-August 1, | ||||||
18 | 1969 appreciation
amounts (to the extent consisting of | ||||||
19 | capital gain) for all property in
respect of which such | ||||||
20 | gain was reported for federal income tax purposes
for | ||||||
21 | the taxable year, or (ii) the net capital gain for the | ||||||
22 | taxable year,
reduced in either case by any amount of | ||||||
23 | such gain included in the amount
determined under | ||||||
24 | subsection (a)(2)(F) or (c)(2)(H). | ||||||
25 | (2) Pre-August 1, 1969 appreciation amount. |
| |||||||
| |||||||
1 | (A) If the fair market value of property referred | ||||||
2 | to in paragraph
(1) was readily ascertainable on August | ||||||
3 | 1, 1969, the pre-August 1, 1969
appreciation amount for | ||||||
4 | such property is the lesser of (i) the excess of
such | ||||||
5 | fair market value over the taxpayer's basis (for | ||||||
6 | determining gain)
for such property on that date | ||||||
7 | (determined under the Internal Revenue
Code as in | ||||||
8 | effect on that date), or (ii) the total gain realized | ||||||
9 | and
reportable for federal income tax purposes in | ||||||
10 | respect of the sale,
exchange or other disposition of | ||||||
11 | such property. | ||||||
12 | (B) If the fair market value of property referred | ||||||
13 | to in paragraph
(1) was not readily ascertainable on | ||||||
14 | August 1, 1969, the pre-August 1,
1969 appreciation | ||||||
15 | amount for such property is that amount which bears
the | ||||||
16 | same ratio to the total gain reported in respect of the | ||||||
17 | property for
federal income tax purposes for the | ||||||
18 | taxable year, as the number of full
calendar months in | ||||||
19 | that part of the taxpayer's holding period for the
| ||||||
20 | property ending July 31, 1969 bears to the number of | ||||||
21 | full calendar
months in the taxpayer's entire holding | ||||||
22 | period for the
property. | ||||||
23 | (C) The Department shall prescribe such | ||||||
24 | regulations as may be
necessary to carry out the | ||||||
25 | purposes of this paragraph.
|
| |||||||
| |||||||
1 | (g) Double deductions. Unless specifically provided | ||||||
2 | otherwise, nothing
in this Section shall permit the same item | ||||||
3 | to be deducted more than once.
| ||||||
4 | (h) Legislative intention. Except as expressly provided by | ||||||
5 | this
Section there shall be no modifications or limitations on | ||||||
6 | the amounts
of income, gain, loss or deduction taken into | ||||||
7 | account in determining
gross income, adjusted gross income or | ||||||
8 | taxable income for federal income
tax purposes for the taxable | ||||||
9 | year, or in the amount of such items
entering into the | ||||||
10 | computation of base income and net income under this
Act for | ||||||
11 | such taxable year, whether in respect of property values as of
| ||||||
12 | August 1, 1969 or otherwise. | ||||||
13 | (Source: P.A. 100-22, eff. 7-6-17; 100-905, eff. 8-17-18; | ||||||
14 | revised 10-29-18.)
| ||||||
15 | Section 10-10. The Use Tax Act is amended by changing | ||||||
16 | Section 2 and by adding Section 2d as follows:
| ||||||
17 | (35 ILCS 105/2) (from Ch. 120, par. 439.2)
| ||||||
18 | Sec. 2. Definitions. | ||||||
19 | "Use" means the exercise by any person of any right or | ||||||
20 | power over
tangible personal property incident to the ownership | ||||||
21 | of that property,
except that it does not include the sale of | ||||||
22 | such property in any form as
tangible personal property in the | ||||||
23 | regular course of business to the extent
that such property is |
| |||||||
| |||||||
1 | not first subjected to a use for which it was
purchased, and | ||||||
2 | does not include the use of such property by its owner for
| ||||||
3 | demonstration purposes: Provided that the property purchased | ||||||
4 | is deemed to
be purchased for the purpose of resale, despite | ||||||
5 | first being used, to the
extent to which it is resold as an | ||||||
6 | ingredient of an intentionally produced
product or by-product | ||||||
7 | of manufacturing. "Use" does not mean the demonstration
use or | ||||||
8 | interim use of tangible personal property by a retailer before | ||||||
9 | he sells
that tangible personal property. For watercraft or | ||||||
10 | aircraft, if the period of
demonstration use or interim use by | ||||||
11 | the retailer exceeds 18 months,
the retailer
shall pay on the | ||||||
12 | retailers' original cost price the tax imposed by this Act,
and | ||||||
13 | no credit for that tax is permitted if the watercraft or | ||||||
14 | aircraft is
subsequently sold by the retailer. "Use" does not | ||||||
15 | mean the physical
incorporation of tangible personal property, | ||||||
16 | to the extent not first subjected
to a use for which it was | ||||||
17 | purchased, as an ingredient or constituent, into
other tangible | ||||||
18 | personal property (a) which is sold in the regular course of
| ||||||
19 | business or (b) which the person incorporating such ingredient | ||||||
20 | or constituent
therein has undertaken at the time of such | ||||||
21 | purchase to cause to be transported
in interstate commerce to | ||||||
22 | destinations outside the State of Illinois: Provided
that the | ||||||
23 | property purchased is deemed to be purchased for the purpose of
| ||||||
24 | resale, despite first being used, to the extent to which it is | ||||||
25 | resold as an
ingredient of an intentionally produced product or | ||||||
26 | by-product of manufacturing.
|
| |||||||
| |||||||
1 | "Watercraft" means a Class 2, Class 3, or Class 4 | ||||||
2 | watercraft as defined in
Section 3-2 of the Boat Registration | ||||||
3 | and Safety Act, a personal watercraft, or
any boat equipped | ||||||
4 | with an inboard motor.
| ||||||
5 | "Purchase at retail" means the acquisition of the ownership | ||||||
6 | of or title
to tangible personal property through a sale at | ||||||
7 | retail.
| ||||||
8 | "Purchaser" means anyone who, through a sale at retail, | ||||||
9 | acquires the
ownership of tangible personal property for a | ||||||
10 | valuable consideration.
| ||||||
11 | "Sale at retail" means any transfer of the ownership of or | ||||||
12 | title to
tangible personal property to a purchaser, for the | ||||||
13 | purpose of use, and not
for the purpose of resale in any form | ||||||
14 | as tangible personal property to the
extent not first subjected | ||||||
15 | to a use for which it was purchased, for a
valuable | ||||||
16 | consideration: Provided that the property purchased is deemed | ||||||
17 | to
be purchased for the purpose of resale, despite first being | ||||||
18 | used, to the
extent to which it is resold as an ingredient of | ||||||
19 | an intentionally produced
product or by-product of | ||||||
20 | manufacturing. For this purpose, slag produced as
an incident | ||||||
21 | to manufacturing pig iron or steel and sold is considered to be
| ||||||
22 | an intentionally produced by-product of manufacturing. "Sale | ||||||
23 | at retail"
includes any such transfer made for resale unless | ||||||
24 | made in compliance with
Section 2c of the Retailers' Occupation | ||||||
25 | Tax Act, as incorporated by
reference into Section 12 of this | ||||||
26 | Act. Transactions whereby the possession
of the property is |
| |||||||
| |||||||
1 | transferred but the seller retains the title as security
for | ||||||
2 | payment of the selling price are sales.
| ||||||
3 | "Sale at retail" shall also be construed to include any | ||||||
4 | Illinois
florist's sales transaction in which the purchase | ||||||
5 | order is received in
Illinois by a florist and the sale is for | ||||||
6 | use or consumption, but the
Illinois florist has a florist in | ||||||
7 | another state deliver the property to the
purchaser or the | ||||||
8 | purchaser's donee in such other state.
| ||||||
9 | Nonreusable tangible personal property that is used by | ||||||
10 | persons engaged in
the business of operating a restaurant, | ||||||
11 | cafeteria, or drive-in is a sale for
resale when it is | ||||||
12 | transferred to customers in the ordinary course of business
as | ||||||
13 | part of the sale of food or beverages and is used to deliver, | ||||||
14 | package, or
consume food or beverages, regardless of where | ||||||
15 | consumption of the food or
beverages occurs. Examples of those | ||||||
16 | items include, but are not limited to
nonreusable, paper and | ||||||
17 | plastic cups, plates, baskets, boxes, sleeves, buckets
or other | ||||||
18 | containers, utensils, straws, placemats, napkins, doggie bags, | ||||||
19 | and
wrapping or packaging
materials that are transferred to | ||||||
20 | customers as part of the sale of food or
beverages in the | ||||||
21 | ordinary course of business.
| ||||||
22 | The purchase, employment and transfer of such tangible | ||||||
23 | personal property
as newsprint and ink for the primary purpose | ||||||
24 | of conveying news (with or
without other information) is not a | ||||||
25 | purchase, use or sale of tangible
personal property.
| ||||||
26 | "Selling price" means the consideration for a sale valued |
| |||||||
| |||||||
1 | in money
whether received in money or otherwise, including | ||||||
2 | cash, credits, property
other than as hereinafter provided, and | ||||||
3 | services, but not including the
value of or credit given for | ||||||
4 | traded-in tangible personal property where the
item that is | ||||||
5 | traded-in is of like kind and character as that which is being
| ||||||
6 | sold, and shall be determined without any deduction on account | ||||||
7 | of the cost
of the property sold, the cost of materials used, | ||||||
8 | labor or service cost or
any other expense whatsoever, but does | ||||||
9 | not include interest or finance
charges which appear as | ||||||
10 | separate items on the bill of sale or sales
contract nor | ||||||
11 | charges that are added to prices by sellers on account of the
| ||||||
12 | seller's tax liability under the "Retailers' Occupation Tax | ||||||
13 | Act", or on
account of the seller's duty to collect, from the | ||||||
14 | purchaser, the tax that
is imposed by this Act, or, except as | ||||||
15 | otherwise provided with respect to any cigarette tax imposed by | ||||||
16 | a home rule unit, on account of the seller's tax liability | ||||||
17 | under any local occupation tax administered by the Department, | ||||||
18 | or, except as otherwise provided with respect to any cigarette | ||||||
19 | tax imposed by a home rule unit on account of the seller's duty | ||||||
20 | to collect, from the purchasers, the tax that is imposed under | ||||||
21 | any local use tax administered by the Department. Effective | ||||||
22 | December 1, 1985, "selling price"
shall include charges that | ||||||
23 | are added to prices by sellers on account of the
seller's tax | ||||||
24 | liability under the Cigarette Tax Act, on account of the | ||||||
25 | seller's
duty to collect, from the purchaser, the tax imposed | ||||||
26 | under the Cigarette Use
Tax Act, and on account of the seller's |
| |||||||
| |||||||
1 | duty to collect, from the purchaser,
any cigarette tax imposed | ||||||
2 | by a home rule unit.
| ||||||
3 | Notwithstanding any law to the contrary, for any motor | ||||||
4 | vehicle, as defined in Section 1-146 of the Vehicle Code, that | ||||||
5 | is sold on or after January 1, 2015 for the purpose of leasing | ||||||
6 | the vehicle for a defined period that is longer than one year | ||||||
7 | and (1) is a motor vehicle of the second division that: (A) is | ||||||
8 | a self-contained motor vehicle designed or permanently | ||||||
9 | converted to provide living quarters for recreational, | ||||||
10 | camping, or travel use, with direct walk through access to the | ||||||
11 | living quarters from the driver's seat; (B) is of the van | ||||||
12 | configuration designed for the transportation of not less than | ||||||
13 | 7 nor more than 16 passengers; or (C) has a gross vehicle | ||||||
14 | weight rating of 8,000 pounds or less or (2) is a motor vehicle | ||||||
15 | of the first division, "selling price" or "amount of sale" | ||||||
16 | means the consideration received by the lessor pursuant to the | ||||||
17 | lease contract, including amounts due at lease signing and all | ||||||
18 | monthly or other regular payments charged over the term of the | ||||||
19 | lease. Also included in the selling price is any amount | ||||||
20 | received by the lessor from the lessee for the leased vehicle | ||||||
21 | that is not calculated at the time the lease is executed, | ||||||
22 | including, but not limited to, excess mileage charges and | ||||||
23 | charges for excess wear and tear. For sales that occur in | ||||||
24 | Illinois, with respect to any amount received by the lessor | ||||||
25 | from the lessee for the leased vehicle that is not calculated | ||||||
26 | at the time the lease is executed, the lessor who purchased the |
| |||||||
| |||||||
1 | motor vehicle does not incur the tax imposed by the Use Tax Act | ||||||
2 | on those amounts, and the retailer who makes the retail sale of | ||||||
3 | the motor vehicle to the lessor is not required to collect the | ||||||
4 | tax imposed by this Act or to pay the tax imposed by the | ||||||
5 | Retailers' Occupation Tax Act on those amounts. However, the | ||||||
6 | lessor who purchased the motor vehicle assumes the liability | ||||||
7 | for reporting and paying the tax on those amounts directly to | ||||||
8 | the Department in the same form (Illinois Retailers' Occupation | ||||||
9 | Tax, and local retailers' occupation taxes, if applicable) in | ||||||
10 | which the retailer would have reported and paid such tax if the | ||||||
11 | retailer had accounted for the tax to the Department. For | ||||||
12 | amounts received by the lessor from the lessee that are not | ||||||
13 | calculated at the time the lease is executed, the lessor must | ||||||
14 | file the return and pay the tax to the Department by the due | ||||||
15 | date otherwise required by this Act for returns other than | ||||||
16 | transaction returns. If the retailer is entitled under this Act | ||||||
17 | to a discount for collecting and remitting the tax imposed | ||||||
18 | under this Act to the Department with respect to the sale of | ||||||
19 | the motor vehicle to the lessor, then the right to the discount | ||||||
20 | provided in this Act shall be transferred to the lessor with | ||||||
21 | respect to the tax paid by the lessor for any amount received | ||||||
22 | by the lessor from the lessee for the leased vehicle that is | ||||||
23 | not calculated at the time the lease is executed; provided that | ||||||
24 | the discount is only allowed if the return is timely filed and | ||||||
25 | for amounts timely paid. The "selling price" of a motor vehicle | ||||||
26 | that is sold on or after January 1, 2015 for the purpose of |
| |||||||
| |||||||
1 | leasing for a defined period of longer than one year shall not | ||||||
2 | be reduced by the value of or credit given for traded-in | ||||||
3 | tangible personal property owned by the lessor, nor shall it be | ||||||
4 | reduced by the value of or credit given for traded-in tangible | ||||||
5 | personal property owned by the lessee, regardless of whether | ||||||
6 | the trade-in value thereof is assigned by the lessee to the | ||||||
7 | lessor. In the case of a motor vehicle that is sold for the | ||||||
8 | purpose of leasing for a defined period of longer than one | ||||||
9 | year, the sale occurs at the time of the delivery of the | ||||||
10 | vehicle, regardless of the due date of any lease payments. A | ||||||
11 | lessor who incurs a Retailers' Occupation Tax liability on the | ||||||
12 | sale of a motor vehicle coming off lease may not take a credit | ||||||
13 | against that liability for the Use Tax the lessor paid upon the | ||||||
14 | purchase of the motor vehicle (or for any tax the lessor paid | ||||||
15 | with respect to any amount received by the lessor from the | ||||||
16 | lessee for the leased vehicle that was not calculated at the | ||||||
17 | time the lease was executed) if the selling price of the motor | ||||||
18 | vehicle at the time of purchase was calculated using the | ||||||
19 | definition of "selling price" as defined in this paragraph. | ||||||
20 | Notwithstanding any other provision of this Act to the | ||||||
21 | contrary, lessors shall file all returns and make all payments | ||||||
22 | required under this paragraph to the Department by electronic | ||||||
23 | means in the manner and form as required by the Department. | ||||||
24 | This paragraph does not apply to leases of motor vehicles for | ||||||
25 | which, at the time the lease is entered into, the term of the | ||||||
26 | lease is not a defined period, including leases with a defined |
| |||||||
| |||||||
1 | initial period with the option to continue the lease on a | ||||||
2 | month-to-month or other basis beyond the initial defined | ||||||
3 | period. | ||||||
4 | The phrase "like kind and character" shall be liberally | ||||||
5 | construed
(including but not limited to any form of motor | ||||||
6 | vehicle for any form of
motor vehicle, or any kind of farm or | ||||||
7 | agricultural implement for any other
kind of farm or | ||||||
8 | agricultural implement), while not including a kind of item
| ||||||
9 | which, if sold at retail by that retailer, would be exempt from | ||||||
10 | retailers'
occupation tax and use tax as an isolated or | ||||||
11 | occasional sale.
| ||||||
12 | "Department" means the Department of Revenue.
| ||||||
13 | "Person" means any natural individual, firm, partnership, | ||||||
14 | association,
joint stock company, joint adventure, public or | ||||||
15 | private corporation, limited
liability company, or a
receiver, | ||||||
16 | executor, trustee, guardian or other representative appointed
| ||||||
17 | by order of any court.
| ||||||
18 | "Retailer" means and includes every person engaged in the | ||||||
19 | business of
making sales at retail as defined in this Section.
| ||||||
20 | A person who holds himself or herself out as being engaged | ||||||
21 | (or who habitually
engages) in selling tangible personal | ||||||
22 | property at retail is a retailer
hereunder with respect to such | ||||||
23 | sales (and not primarily in a service
occupation) | ||||||
24 | notwithstanding the fact that such person designs and produces
| ||||||
25 | such tangible personal property on special order for the | ||||||
26 | purchaser and in
such a way as to render the property of value |
| |||||||
| |||||||
1 | only to such purchaser, if
such tangible personal property so | ||||||
2 | produced on special order serves
substantially the same | ||||||
3 | function as stock or standard items of tangible
personal | ||||||
4 | property that are sold at retail.
| ||||||
5 | A person whose activities are organized and conducted | ||||||
6 | primarily as a
not-for-profit service enterprise, and who | ||||||
7 | engages in selling tangible
personal property at retail | ||||||
8 | (whether to the public or merely to members and
their guests) | ||||||
9 | is a retailer with respect to such transactions, excepting
only | ||||||
10 | a person organized and operated exclusively for charitable, | ||||||
11 | religious
or educational purposes either (1), to the extent of | ||||||
12 | sales by such person
to its members, students, patients or | ||||||
13 | inmates of tangible personal property
to be used primarily for | ||||||
14 | the purposes of such person, or (2), to the extent
of sales by | ||||||
15 | such person of tangible personal property which is not sold or
| ||||||
16 | offered for sale by persons organized for profit. The selling | ||||||
17 | of school
books and school supplies by schools at retail to | ||||||
18 | students is not
"primarily for the purposes of" the school | ||||||
19 | which does such selling. This
paragraph does not apply to nor | ||||||
20 | subject to taxation occasional dinners,
social or similar | ||||||
21 | activities of a person organized and operated exclusively
for | ||||||
22 | charitable, religious or educational purposes, whether or not | ||||||
23 | such
activities are open to the public.
| ||||||
24 | A person who is the recipient of a grant or contract under | ||||||
25 | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | ||||||
26 | serves meals to
participants in the federal Nutrition Program |
| |||||||
| |||||||
1 | for the Elderly in return for
contributions established in | ||||||
2 | amount by the individual participant pursuant
to a schedule of | ||||||
3 | suggested fees as provided for in the federal Act is not a
| ||||||
4 | retailer under this Act with respect to such transactions.
| ||||||
5 | Persons who engage in the business of transferring tangible | ||||||
6 | personal
property upon the redemption of trading stamps are | ||||||
7 | retailers hereunder when
engaged in such business.
| ||||||
8 | The isolated or occasional sale of tangible personal | ||||||
9 | property at retail
by a person who does not hold himself out as | ||||||
10 | being engaged (or who does not
habitually engage) in selling | ||||||
11 | such tangible personal property at retail or
a sale through a | ||||||
12 | bulk vending machine does not make such person a retailer
| ||||||
13 | hereunder. However, any person who is engaged in a business | ||||||
14 | which is not
subject to the tax imposed by the "Retailers' | ||||||
15 | Occupation Tax Act" because
of involving the sale of or a | ||||||
16 | contract to sell real estate or a
construction contract to | ||||||
17 | improve real estate, but who, in the course of
conducting such | ||||||
18 | business, transfers tangible personal property to users or
| ||||||
19 | consumers in the finished form in which it was purchased, and | ||||||
20 | which does
not become real estate, under any provision of a | ||||||
21 | construction contract or
real estate sale or real estate sales | ||||||
22 | agreement entered into with some
other person arising out of or | ||||||
23 | because of such nontaxable business, is a
retailer to the | ||||||
24 | extent of the value of the tangible personal property so
| ||||||
25 | transferred. If, in such transaction, a separate charge is made | ||||||
26 | for the
tangible personal property so transferred, the value of |
| |||||||
| |||||||
1 | such property, for
the purposes of this Act, is the amount so | ||||||
2 | separately charged, but not less
than the cost of such property | ||||||
3 | to the transferor; if no separate charge is
made, the value of | ||||||
4 | such property, for the purposes of this Act, is the cost
to the | ||||||
5 | transferor of such tangible personal property.
| ||||||
6 | "Retailer maintaining a place of business in this State", | ||||||
7 | or any like
term, means and includes any of the following | ||||||
8 | retailers:
| ||||||
9 | (1) A retailer having or maintaining within this State, | ||||||
10 | directly or by
a subsidiary, an office, distribution house, | ||||||
11 | sales house, warehouse or other
place of business, or any | ||||||
12 | agent or other representative operating within this
State | ||||||
13 | under the authority of the retailer or its subsidiary, | ||||||
14 | irrespective of
whether such place of business or agent or | ||||||
15 | other representative is located here
permanently or | ||||||
16 | temporarily, or whether such retailer or subsidiary is | ||||||
17 | licensed
to do business in this State. However, the | ||||||
18 | ownership of property that is
located at the premises of a | ||||||
19 | printer with which the retailer has contracted for
printing | ||||||
20 | and that consists of the final printed product, property | ||||||
21 | that becomes
a part of the final printed product, or copy | ||||||
22 | from which the printed product is
produced shall not result | ||||||
23 | in the retailer being deemed to have or maintain an
office, | ||||||
24 | distribution house, sales house, warehouse, or other place | ||||||
25 | of business
within this State. | ||||||
26 | (1.1) A retailer having a contract with a person |
| |||||||
| |||||||
1 | located in this State under which the person, for a | ||||||
2 | commission or other consideration based upon the sale of | ||||||
3 | tangible personal property by the retailer, directly or | ||||||
4 | indirectly refers potential customers to the retailer by | ||||||
5 | providing to the potential customers a promotional code or | ||||||
6 | other mechanism that allows the retailer to track purchases | ||||||
7 | referred by such persons. Examples of mechanisms that allow | ||||||
8 | the retailer to track purchases referred by such persons | ||||||
9 | include but are not limited to the use of a link on the | ||||||
10 | person's Internet website, promotional codes distributed | ||||||
11 | through the person's hand-delivered or mailed material, | ||||||
12 | and promotional codes distributed by the person through | ||||||
13 | radio or other broadcast media. The provisions of this | ||||||
14 | paragraph (1.1) shall apply only if the cumulative gross | ||||||
15 | receipts from sales of tangible personal property by the | ||||||
16 | retailer to customers who are referred to the retailer by | ||||||
17 | all persons in this State under such contracts exceed | ||||||
18 | $10,000 during the preceding 4 quarterly periods ending on | ||||||
19 | the last day of March, June, September, and December. A | ||||||
20 | retailer meeting the requirements of this paragraph (1.1) | ||||||
21 | shall be presumed to be maintaining a place of business in | ||||||
22 | this State but may rebut this presumption by submitting | ||||||
23 | proof that the referrals or other activities pursued within | ||||||
24 | this State by such persons were not sufficient to meet the | ||||||
25 | nexus standards of the United States Constitution during | ||||||
26 | the preceding 4 quarterly periods. |
| |||||||
| |||||||
1 | (1.2) Beginning July 1, 2011, a retailer having a | ||||||
2 | contract with a person located in this State under which: | ||||||
3 | (A) the retailer sells the same or substantially | ||||||
4 | similar line of products as the person located in this | ||||||
5 | State and does so using an identical or substantially | ||||||
6 | similar name, trade name, or trademark as the person | ||||||
7 | located in this State; and | ||||||
8 | (B) the retailer provides a commission or other | ||||||
9 | consideration to the person located in this State based | ||||||
10 | upon the sale of tangible personal property by the | ||||||
11 | retailer. | ||||||
12 | The provisions of this paragraph (1.2) shall apply only if | ||||||
13 | the cumulative gross receipts from sales of tangible | ||||||
14 | personal property by the retailer to customers in this | ||||||
15 | State under all such contracts exceed $10,000 during the | ||||||
16 | preceding 4 quarterly periods ending on the last day of | ||||||
17 | March, June, September, and December.
| ||||||
18 | (2) A retailer soliciting orders for tangible personal | ||||||
19 | property by
means of a telecommunication or television | ||||||
20 | shopping system (which utilizes toll
free numbers) which is | ||||||
21 | intended by the retailer to be broadcast by cable
| ||||||
22 | television or other means of broadcasting, to consumers | ||||||
23 | located in this State.
| ||||||
24 | (3) A retailer, pursuant to a contract with a | ||||||
25 | broadcaster or publisher
located in this State, soliciting | ||||||
26 | orders for tangible personal property by
means of |
| |||||||
| |||||||
1 | advertising which is disseminated primarily to consumers | ||||||
2 | located in
this State and only secondarily to bordering | ||||||
3 | jurisdictions.
| ||||||
4 | (4) A retailer soliciting orders for tangible personal | ||||||
5 | property by mail
if the solicitations are substantial and | ||||||
6 | recurring and if the retailer benefits
from any banking, | ||||||
7 | financing, debt collection, telecommunication, or | ||||||
8 | marketing
activities occurring in this State or benefits | ||||||
9 | from the location in this State
of authorized installation, | ||||||
10 | servicing, or repair facilities.
| ||||||
11 | (5) A retailer that is owned or controlled by the same | ||||||
12 | interests that own
or control any retailer engaging in | ||||||
13 | business in the same or similar line of
business in this | ||||||
14 | State.
| ||||||
15 | (6) A retailer having a franchisee or licensee | ||||||
16 | operating under its trade
name if the franchisee or | ||||||
17 | licensee is required to collect the tax under this
Section.
| ||||||
18 | (7) A retailer, pursuant to a contract with a cable | ||||||
19 | television operator
located in this State, soliciting | ||||||
20 | orders for tangible personal property by
means of | ||||||
21 | advertising which is transmitted or distributed over a | ||||||
22 | cable
television system in this State.
| ||||||
23 | (8) A retailer engaging in activities in Illinois, | ||||||
24 | which activities in
the state in which the retail business | ||||||
25 | engaging in such activities is located
would constitute | ||||||
26 | maintaining a place of business in that state.
|
| |||||||
| |||||||
1 | (9) Beginning October 1, 2018, a retailer making sales | ||||||
2 | of tangible personal property to purchasers in Illinois | ||||||
3 | from outside of Illinois if: | ||||||
4 | (A) the cumulative gross receipts from sales of | ||||||
5 | tangible personal property to purchasers in Illinois | ||||||
6 | are $100,000 or more; or | ||||||
7 | (B) the retailer enters into 200 or more separate | ||||||
8 | transactions for the sale of tangible personal | ||||||
9 | property to purchasers in Illinois. | ||||||
10 | The retailer shall determine on a quarterly basis, | ||||||
11 | ending on the last day of March, June, September, and | ||||||
12 | December, whether he or she meets the criteria of either | ||||||
13 | subparagraph (A) or (B) of this paragraph (9) for the | ||||||
14 | preceding 12-month period. If the retailer meets the | ||||||
15 | criteria of either subparagraph (A) or (B) for a 12-month | ||||||
16 | period, he or she is considered a retailer maintaining a | ||||||
17 | place of business in this State and is required to collect | ||||||
18 | and remit the tax imposed under this Act and file returns | ||||||
19 | for one year. At the end of that one-year period, the | ||||||
20 | retailer shall determine whether the retailer met the | ||||||
21 | criteria of either subparagraph (A) or (B) during the | ||||||
22 | preceding 12-month period. If the retailer met the criteria | ||||||
23 | in either subparagraph (A) or (B) for the preceding | ||||||
24 | 12-month period, he or she is considered a retailer | ||||||
25 | maintaining a place of business in this State and is | ||||||
26 | required to collect and remit the tax imposed under this |
| |||||||
| |||||||
1 | Act and file returns for the subsequent year. If at the end | ||||||
2 | of a one-year period a retailer that was required to | ||||||
3 | collect and remit the tax imposed under this Act determines | ||||||
4 | that he or she did not meet the criteria in either | ||||||
5 | subparagraph (A) or (B) during the preceding 12-month | ||||||
6 | period, the retailer shall subsequently determine on a | ||||||
7 | quarterly basis, ending on the last day of March, June, | ||||||
8 | September, and December, whether he or she meets the | ||||||
9 | criteria of either subparagraph (A) or (B) for the | ||||||
10 | preceding 12-month period. | ||||||
11 | Beginning January 1, 2020, neither the gross receipts | ||||||
12 | from nor the number of separate transactions for sales of | ||||||
13 | tangible personal property to purchasers in Illinois that a | ||||||
14 | retailer makes through a marketplace facilitator and for | ||||||
15 | which the retailer has received a certification from the | ||||||
16 | marketplace facilitator pursuant to Section 2d of this Act | ||||||
17 | shall be included for purposes of determining whether he or | ||||||
18 | she has met the thresholds of this paragraph (9). | ||||||
19 | (10) Beginning January 1, 2020, a marketplace | ||||||
20 | facilitator, as defined in Section 2d of this Act. | ||||||
21 | "Bulk vending machine" means a vending machine,
containing | ||||||
22 | unsorted confections, nuts, toys, or other items designed
| ||||||
23 | primarily to be used or played with by children
which, when a | ||||||
24 | coin or coins of a denomination not larger than $0.50 are | ||||||
25 | inserted, are dispensed in equal portions, at random and
| ||||||
26 | without selection by the customer.
|
| |||||||
| |||||||
1 | (Source: P.A. 99-78, eff. 7-20-15; 100-587, eff. 6-4-18.)
| ||||||
2 | (35 ILCS 105/2d new) | ||||||
3 | Sec. 2d. Marketplace facilitators and marketplace sellers. | ||||||
4 | (a) As used in this Section: | ||||||
5 | "Affiliate" means a person that, with respect to another | ||||||
6 | person: (i) has a direct or indirect ownership interest of more | ||||||
7 | than 5 percent in the other person; or (ii) is related to the | ||||||
8 | other person because a third person, or a group of third | ||||||
9 | persons who are affiliated with each other as defined in this | ||||||
10 | subsection, holds a direct or indirect ownership interest of | ||||||
11 | more than 5% in the related person. | ||||||
12 | "Marketplace" means a physical or electronic place, forum, | ||||||
13 | platform, application, or other method by which a marketplace | ||||||
14 | seller sells or offers to sell items. | ||||||
15 | "Marketplace facilitator" means a person who, pursuant to | ||||||
16 | an agreement with a marketplace seller, facilitates sales of | ||||||
17 | tangible personal property by that marketplace seller. A person | ||||||
18 | facilitates a sale of tangible personal property by, directly | ||||||
19 | or indirectly through one or more affiliates, doing both of the | ||||||
20 | following: (i) listing or otherwise making available for sale | ||||||
21 | the tangible personal property of the marketplace seller | ||||||
22 | through a marketplace owned or operated by the marketplace | ||||||
23 | facilitator; and (ii) processing sales or payments for | ||||||
24 | marketplace sellers. | ||||||
25 | "Marketplace seller" means a person that sells or offers to |
| |||||||
| |||||||
1 | sell tangible personal property through a marketplace. | ||||||
2 | (b) Beginning on January 1, 2020, a marketplace facilitator | ||||||
3 | who meets either of the following criteria is considered the | ||||||
4 | retailer of each sale of tangible personal property made on the | ||||||
5 | marketplace: | ||||||
6 | (1) the cumulative gross receipts from sales of | ||||||
7 | tangible personal property to purchasers in Illinois by the | ||||||
8 | marketplace facilitator and by marketplace sellers are | ||||||
9 | $100,000 or more; or | ||||||
10 | (2) the marketplace facilitator and marketplace | ||||||
11 | sellers cumulatively enter into 200 or more separate | ||||||
12 | transactions for the sale of tangible personal property to | ||||||
13 | purchasers in Illinois. | ||||||
14 | A marketplace facilitator shall determine on a quarterly | ||||||
15 | basis, ending on the last day of March, June, September, and | ||||||
16 | December, whether he or she meets the criteria of either | ||||||
17 | paragraph (1) or (2) of this subsection (b) for the preceding | ||||||
18 | 12-month period. If the marketplace facilitator meets the | ||||||
19 | criteria of either paragraph (1) or (2) for a 12-month period, | ||||||
20 | he or she is considered a retailer maintaining a place of | ||||||
21 | business in this State and is required to collect and remit the | ||||||
22 | tax imposed under this Act and file returns for one year. At | ||||||
23 | the end of that one-year period, the marketplace facilitator | ||||||
24 | shall determine whether the marketplace facilitator met the | ||||||
25 | criteria of either paragraph (1) or (2) during the preceding | ||||||
26 | 12-month period. If the marketplace facilitator met the |
| |||||||
| |||||||
1 | criteria in either paragraph (1) or (2) for the preceding | ||||||
2 | 12-month period, he or she is considered a retailer maintaining | ||||||
3 | a place of business in this State and is required to collect | ||||||
4 | and remit the tax imposed under this Act and file returns for | ||||||
5 | the subsequent year. If at the end of a one-year period a | ||||||
6 | marketplace facilitator that was required to collect and remit | ||||||
7 | the tax imposed under this Act determines that he or she did | ||||||
8 | not meet the criteria in either paragraph (1) or (2) during the | ||||||
9 | preceding 12-month period, the marketplace facilitator shall | ||||||
10 | subsequently determine on a quarterly basis, ending on the last | ||||||
11 | day of March, June, September, and December, whether he or she | ||||||
12 | meets the criteria of either paragraph (1) or (2) for the | ||||||
13 | preceding 12-month period. | ||||||
14 | (c) A marketplace facilitator that meets either of the | ||||||
15 | thresholds in subsection (b) of this Section is considered the | ||||||
16 | retailer of each sale made through its marketplace and is | ||||||
17 | liable for collecting and remitting the tax under this Act on | ||||||
18 | all such sales. The marketplace facilitator has all the rights | ||||||
19 | and duties, and is required to comply with the same | ||||||
20 | requirements and procedures, as all other retailers | ||||||
21 | maintaining a place of business in this State who are | ||||||
22 | registered or who are required to be registered to collect and | ||||||
23 | remit the tax imposed by this Act. | ||||||
24 | (d) A marketplace facilitator shall: | ||||||
25 | (1) certify to each marketplace seller that the | ||||||
26 | marketplace facilitator assumes the rights and duties of a |
| |||||||
| |||||||
1 | retailer under this Act with respect to sales made by the | ||||||
2 | marketplace seller through the marketplace; and | ||||||
3 | (2) collect taxes imposed by this Act as required by | ||||||
4 | Section 3-45 of this Act for sales made through the | ||||||
5 | marketplace. | ||||||
6 | (e) A marketplace seller shall retain books and records for | ||||||
7 | all sales made through a marketplace in accordance with the | ||||||
8 | requirements of Section 11. | ||||||
9 | (f) A marketplace seller shall furnish to the marketplace | ||||||
10 | facilitator information that is necessary for the marketplace | ||||||
11 | facilitator to correctly collect and remit taxes for a retail | ||||||
12 | sale. The information may include a certification that an item | ||||||
13 | being sold is taxable, not taxable, exempt from taxation, or | ||||||
14 | taxable at a specified rate. A marketplace seller shall be held | ||||||
15 | harmless for liability for the tax imposed under this Act when | ||||||
16 | a marketplace facilitator fails to correctly collect and remit | ||||||
17 | tax after having been provided with information by a | ||||||
18 | marketplace seller to correctly collect and remit taxes imposed | ||||||
19 | under this Act. | ||||||
20 | (g) Except as provided in subsection (h), if the | ||||||
21 | marketplace facilitator demonstrates to the satisfaction of | ||||||
22 | the Department that its failure to correctly collect and remit | ||||||
23 | tax on a retail sale resulted from the marketplace | ||||||
24 | facilitator's good faith reliance on incorrect or insufficient | ||||||
25 | information provided by a marketplace seller, it shall be | ||||||
26 | relieved of liability for the tax on that retail sale. In this |
| |||||||
| |||||||
1 | case, a marketplace seller is liable for any resulting tax due. | ||||||
2 | (h) A marketplace facilitator and marketplace seller that | ||||||
3 | are affiliates, as defined by subsection (a), are jointly and | ||||||
4 | severally liable for tax liability resulting from a sale made | ||||||
5 | by the affiliated marketplace seller through the marketplace. | ||||||
6 | (i) This Section does not affect the tax liability of a | ||||||
7 | purchaser under this Act. | ||||||
8 | (j) The Department may adopt rules for the administration | ||||||
9 | and enforcement of the provisions of this Section.
| ||||||
10 | Section 10-15. The Service Use Tax Act is amended by | ||||||
11 | changing Section 2 and by adding Section 2d as follows:
| ||||||
12 | (35 ILCS 110/2) (from Ch. 120, par. 439.32)
| ||||||
13 | Sec. 2. Definitions. In this Act: | ||||||
14 | "Use" means the exercise by any person of any right or | ||||||
15 | power
over tangible personal property incident to the ownership | ||||||
16 | of that
property, but does not include the sale or use for | ||||||
17 | demonstration by him
of that property in any form as tangible | ||||||
18 | personal property in the
regular course of business.
"Use" does | ||||||
19 | not mean the interim
use of
tangible personal property nor the | ||||||
20 | physical incorporation of tangible
personal property, as an | ||||||
21 | ingredient or constituent, into other tangible
personal | ||||||
22 | property, (a) which is sold in the regular course of business
| ||||||
23 | or (b) which the person incorporating such ingredient or | ||||||
24 | constituent
therein has undertaken at the time of such purchase |
| |||||||
| |||||||
1 | to cause to be
transported in interstate commerce to | ||||||
2 | destinations outside the State of
Illinois.
| ||||||
3 | "Purchased from a serviceman" means the acquisition of the | ||||||
4 | ownership
of, or title to, tangible personal property through a | ||||||
5 | sale of service.
| ||||||
6 | "Purchaser" means any person who, through a sale of | ||||||
7 | service, acquires
the ownership of, or title to, any tangible | ||||||
8 | personal property.
| ||||||
9 | "Cost price" means the consideration paid by the serviceman | ||||||
10 | for a
purchase valued in money, whether paid in money or | ||||||
11 | otherwise, including
cash, credits and services, and shall be | ||||||
12 | determined without any
deduction on account of the supplier's | ||||||
13 | cost of the property sold or on
account of any other expense | ||||||
14 | incurred by the supplier. When a serviceman
contracts out part | ||||||
15 | or all of the services required in his sale of service,
it | ||||||
16 | shall be presumed that the cost price to the serviceman of the | ||||||
17 | property
transferred to him or her by his or her subcontractor | ||||||
18 | is equal to 50% of
the subcontractor's charges to the | ||||||
19 | serviceman in the absence of proof of
the consideration paid by | ||||||
20 | the subcontractor for the purchase of such property.
| ||||||
21 | "Selling price" means the consideration for a sale valued | ||||||
22 | in money
whether received in money or otherwise, including | ||||||
23 | cash, credits and
service, and shall be determined without any | ||||||
24 | deduction on account of the
serviceman's cost of the property | ||||||
25 | sold, the cost of materials used,
labor or service cost or any | ||||||
26 | other expense whatsoever, but does not
include interest or |
| |||||||
| |||||||
1 | finance charges which appear as separate items on
the bill of | ||||||
2 | sale or sales contract nor charges that are added to prices
by | ||||||
3 | sellers on account of the seller's duty to collect, from the
| ||||||
4 | purchaser, the tax that is imposed by this Act.
| ||||||
5 | "Department" means the Department of Revenue.
| ||||||
6 | "Person" means any natural individual, firm, partnership,
| ||||||
7 | association, joint stock company, joint venture, public or | ||||||
8 | private
corporation, limited liability company, and any | ||||||
9 | receiver, executor, trustee,
guardian or other representative | ||||||
10 | appointed by order of any court.
| ||||||
11 | "Sale of service" means any transaction except:
| ||||||
12 | (1) a retail sale of tangible personal property taxable | ||||||
13 | under the
Retailers' Occupation Tax Act or under the Use | ||||||
14 | Tax Act.
| ||||||
15 | (2) a sale of tangible personal property for the | ||||||
16 | purpose of resale
made in compliance with Section 2c of the | ||||||
17 | Retailers' Occupation Tax Act.
| ||||||
18 | (3) except as hereinafter provided, a sale or transfer | ||||||
19 | of tangible
personal property as an incident to the | ||||||
20 | rendering of service for or by
any governmental body, or | ||||||
21 | for or by any corporation, society,
association, | ||||||
22 | foundation or institution organized and operated
| ||||||
23 | exclusively for charitable, religious or educational | ||||||
24 | purposes or any
not-for-profit corporation, society, | ||||||
25 | association, foundation,
institution or organization which | ||||||
26 | has no compensated officers or
employees and which is |
| |||||||
| |||||||
1 | organized and operated primarily for the
recreation of | ||||||
2 | persons 55 years of age or older. A limited liability | ||||||
3 | company
may qualify for the exemption under this paragraph | ||||||
4 | only if the limited
liability company is organized and | ||||||
5 | operated exclusively for educational
purposes.
| ||||||
6 | (4) (blank).
| ||||||
7 | (4a) a sale or transfer of tangible personal
property | ||||||
8 | as an incident
to the rendering of service for owners, | ||||||
9 | lessors, or shippers of tangible
personal property which is | ||||||
10 | utilized by interstate carriers for hire for
use as rolling | ||||||
11 | stock moving in interstate commerce so long as so used by
| ||||||
12 | interstate carriers for hire, and equipment operated by a
| ||||||
13 | telecommunications provider, licensed as a common carrier | ||||||
14 | by the Federal
Communications Commission, which is | ||||||
15 | permanently installed in or affixed to
aircraft moving in | ||||||
16 | interstate commerce.
| ||||||
17 | (4a-5) on and after July 1, 2003 and through June 30, | ||||||
18 | 2004, a sale or transfer of a motor vehicle
of
the
second | ||||||
19 | division with a gross vehicle weight in excess of 8,000 | ||||||
20 | pounds as an
incident to the rendering of service if that | ||||||
21 | motor
vehicle is subject
to the commercial distribution fee | ||||||
22 | imposed under Section 3-815.1 of the
Illinois Vehicle
Code. | ||||||
23 | Beginning on July 1, 2004 and through June 30, 2005, the | ||||||
24 | use in this State of motor vehicles of the second division: | ||||||
25 | (i) with a gross vehicle weight rating in excess of 8,000 | ||||||
26 | pounds; (ii) that are subject to the commercial |
| |||||||
| |||||||
1 | distribution fee imposed under Section 3-815.1 of the | ||||||
2 | Illinois Vehicle Code; and (iii) that are primarily used | ||||||
3 | for commercial purposes. Through June 30, 2005, this
| ||||||
4 | exemption applies to repair and replacement parts added | ||||||
5 | after the
initial
purchase of such a motor vehicle if that | ||||||
6 | motor vehicle is used in a manner that
would
qualify for | ||||||
7 | the rolling stock exemption otherwise provided for in this | ||||||
8 | Act. For purposes of this paragraph, "used for commercial | ||||||
9 | purposes" means the transportation of persons or property | ||||||
10 | in furtherance of any commercial or industrial enterprise | ||||||
11 | whether for-hire or not.
| ||||||
12 | (5) a sale or transfer of machinery and equipment used | ||||||
13 | primarily in the
process of the manufacturing or | ||||||
14 | assembling, either in an existing, an expanded
or a new | ||||||
15 | manufacturing facility, of tangible personal property for | ||||||
16 | wholesale or
retail sale or lease, whether such sale or | ||||||
17 | lease is made directly by the
manufacturer or by some other | ||||||
18 | person, whether the materials used in the process
are owned | ||||||
19 | by the manufacturer or some other person, or whether such | ||||||
20 | sale or
lease is made apart from or as an incident to the | ||||||
21 | seller's engaging in a
service occupation and the | ||||||
22 | applicable tax is a Service Use Tax or Service
Occupation | ||||||
23 | Tax, rather than Use Tax or Retailers' Occupation Tax. The | ||||||
24 | exemption provided by this paragraph (5) does not include | ||||||
25 | machinery and equipment used in (i) the generation of | ||||||
26 | electricity for wholesale or retail sale; (ii) the |
| |||||||
| |||||||
1 | generation or treatment of natural or artificial gas for | ||||||
2 | wholesale or retail sale that is delivered to customers | ||||||
3 | through pipes, pipelines, or mains; or (iii) the treatment | ||||||
4 | of water for wholesale or retail sale that is delivered to | ||||||
5 | customers through pipes, pipelines, or mains. The | ||||||
6 | provisions of Public Act 98-583 are declaratory of existing | ||||||
7 | law as to the meaning and scope of this exemption. The | ||||||
8 | exemption under this paragraph (5) is exempt from the | ||||||
9 | provisions of Section 3-75.
| ||||||
10 | (5a) the repairing, reconditioning or remodeling, for | ||||||
11 | a
common carrier by rail, of tangible personal property | ||||||
12 | which belongs to such
carrier for hire, and as to which | ||||||
13 | such carrier receives the physical possession
of the | ||||||
14 | repaired, reconditioned or remodeled item of tangible | ||||||
15 | personal property
in Illinois, and which such carrier | ||||||
16 | transports, or shares with another common
carrier in the | ||||||
17 | transportation of such property, out of Illinois on a | ||||||
18 | standard
uniform bill of lading showing the person who | ||||||
19 | repaired, reconditioned or
remodeled the property to a | ||||||
20 | destination outside Illinois, for use outside
Illinois.
| ||||||
21 | (5b) a sale or transfer of tangible personal property | ||||||
22 | which is produced by
the seller thereof on special order in | ||||||
23 | such a way as to have made the
applicable tax the Service | ||||||
24 | Occupation Tax or the Service Use Tax, rather than
the | ||||||
25 | Retailers' Occupation Tax or the Use Tax, for an interstate | ||||||
26 | carrier by rail
which receives the physical possession of |
| |||||||
| |||||||
1 | such property in Illinois, and which
transports such | ||||||
2 | property, or shares with another common carrier in the
| ||||||
3 | transportation of such property, out of Illinois on a | ||||||
4 | standard uniform bill of
lading showing the seller of the | ||||||
5 | property as the shipper or consignor of such
property to a | ||||||
6 | destination outside Illinois, for use outside Illinois.
| ||||||
7 | (6) until July 1, 2003, a sale or transfer of | ||||||
8 | distillation machinery
and equipment, sold
as a unit or kit | ||||||
9 | and assembled or installed by the retailer, which
machinery | ||||||
10 | and equipment is certified by the user to be used only for | ||||||
11 | the
production of ethyl alcohol that will be used for | ||||||
12 | consumption as motor fuel
or as a component of motor fuel | ||||||
13 | for the personal use of such user and not
subject to sale | ||||||
14 | or resale.
| ||||||
15 | (7) at the election of any serviceman not required to | ||||||
16 | be
otherwise registered as a retailer under Section 2a of | ||||||
17 | the Retailers'
Occupation Tax Act, made for each fiscal | ||||||
18 | year sales
of service in which the aggregate annual cost | ||||||
19 | price of tangible
personal property transferred as an | ||||||
20 | incident to the sales of service is
less than 35%, or 75% | ||||||
21 | in the case of servicemen transferring prescription
drugs | ||||||
22 | or servicemen engaged in graphic arts production, of the | ||||||
23 | aggregate
annual total gross receipts from all sales of | ||||||
24 | service. The purchase of
such tangible personal property by | ||||||
25 | the serviceman shall be subject to tax
under the Retailers' | ||||||
26 | Occupation Tax Act and the Use Tax Act.
However, if a
|
| |||||||
| |||||||
1 | primary serviceman who has made the election described in | ||||||
2 | this paragraph
subcontracts service work to a secondary | ||||||
3 | serviceman who has also made the
election described in this | ||||||
4 | paragraph, the primary serviceman does not
incur a Use Tax | ||||||
5 | liability if the secondary serviceman (i) has paid or will | ||||||
6 | pay
Use
Tax on his or her cost price of any tangible | ||||||
7 | personal property transferred
to the primary serviceman | ||||||
8 | and (ii) certifies that fact in writing to the
primary
| ||||||
9 | serviceman.
| ||||||
10 | Tangible personal property transferred incident to the | ||||||
11 | completion of a
maintenance agreement is exempt from the tax | ||||||
12 | imposed pursuant to this Act.
| ||||||
13 | Exemption (5) also includes machinery and equipment used in | ||||||
14 | the general
maintenance or repair of such exempt machinery and | ||||||
15 | equipment or for in-house
manufacture of exempt machinery and | ||||||
16 | equipment. On and after July 1, 2017, exemption (5) also
| ||||||
17 | includes graphic arts machinery and equipment, as
defined in | ||||||
18 | paragraph (5) of Section 3-5. The machinery and equipment | ||||||
19 | exemption does not include machinery and equipment used in (i) | ||||||
20 | the generation of electricity for wholesale or retail sale; | ||||||
21 | (ii) the generation or treatment of natural or artificial gas | ||||||
22 | for wholesale or retail sale that is delivered to customers | ||||||
23 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
24 | water for wholesale or retail sale that is delivered to | ||||||
25 | customers through pipes, pipelines, or mains. The provisions of | ||||||
26 | Public Act 98-583 are declaratory of existing law as to the |
| |||||||
| |||||||
1 | meaning and scope of this exemption. For the purposes of | ||||||
2 | exemption
(5), each of these terms shall have the following | ||||||
3 | meanings: (1) "manufacturing
process" shall mean the | ||||||
4 | production of any article of tangible personal
property, | ||||||
5 | whether such article is a finished product or an article for | ||||||
6 | use in
the process of manufacturing or assembling a different | ||||||
7 | article of tangible
personal property, by procedures commonly | ||||||
8 | regarded as manufacturing,
processing, fabricating, or | ||||||
9 | refining which changes some existing
material or materials into | ||||||
10 | a material with a different form, use or
name. In relation to a | ||||||
11 | recognized integrated business composed of a
series of | ||||||
12 | operations which collectively constitute manufacturing, or
| ||||||
13 | individually constitute manufacturing operations, the | ||||||
14 | manufacturing
process shall be deemed to commence with the | ||||||
15 | first operation or stage of
production in the series, and shall | ||||||
16 | not be deemed to end until the
completion of the final product | ||||||
17 | in the last operation or stage of
production in the series; and | ||||||
18 | further, for purposes of exemption (5),
photoprocessing is | ||||||
19 | deemed to be a manufacturing process of tangible
personal | ||||||
20 | property for wholesale or retail sale; (2) "assembling process" | ||||||
21 | shall
mean the production of any article of tangible personal | ||||||
22 | property, whether such
article is a finished product or an | ||||||
23 | article for use in the process of
manufacturing or assembling a | ||||||
24 | different article of tangible personal
property, by the | ||||||
25 | combination of existing materials in a manner commonly
regarded | ||||||
26 | as assembling which results in a material of a different form,
|
| |||||||
| |||||||
1 | use or name; (3) "machinery" shall mean major mechanical | ||||||
2 | machines or
major components of such machines contributing to a | ||||||
3 | manufacturing or
assembling process; and (4) "equipment" shall | ||||||
4 | include any independent
device or tool separate from any | ||||||
5 | machinery but essential to an
integrated manufacturing or | ||||||
6 | assembly process; including computers
used primarily in a | ||||||
7 | manufacturer's computer
assisted design, computer assisted | ||||||
8 | manufacturing (CAD/CAM) system;
or any subunit or assembly | ||||||
9 | comprising a component of any machinery or
auxiliary, adjunct | ||||||
10 | or attachment parts of machinery, such as tools, dies,
jigs, | ||||||
11 | fixtures, patterns and molds; or any parts which require | ||||||
12 | periodic
replacement in the course of normal operation; but | ||||||
13 | shall not include hand
tools.
Equipment includes chemicals or | ||||||
14 | chemicals acting as catalysts but only if the
chemicals or | ||||||
15 | chemicals acting as catalysts effect a direct and immediate | ||||||
16 | change
upon a
product being manufactured or assembled for | ||||||
17 | wholesale or retail sale or
lease.
The purchaser of such | ||||||
18 | machinery and equipment who has an active
resale registration | ||||||
19 | number shall furnish such number to the seller at the
time of | ||||||
20 | purchase. The user of such machinery and equipment and tools
| ||||||
21 | without an active resale registration number shall prepare a | ||||||
22 | certificate of
exemption for each transaction stating facts | ||||||
23 | establishing the exemption for
that transaction, which | ||||||
24 | certificate shall be available to the Department
for inspection | ||||||
25 | or audit. The Department shall prescribe the form of the
| ||||||
26 | certificate.
|
| |||||||
| |||||||
1 | Any informal rulings, opinions or letters issued by the | ||||||
2 | Department in
response to an inquiry or request for any opinion | ||||||
3 | from any person
regarding the coverage and applicability of | ||||||
4 | exemption (5) to specific
devices shall be published, | ||||||
5 | maintained as a public record, and made
available for public | ||||||
6 | inspection and copying. If the informal ruling,
opinion or | ||||||
7 | letter contains trade secrets or other confidential
| ||||||
8 | information, where possible the Department shall delete such | ||||||
9 | information
prior to publication. Whenever such informal | ||||||
10 | rulings, opinions, or
letters contain any policy of general | ||||||
11 | applicability, the Department
shall formulate and adopt such | ||||||
12 | policy as a rule in accordance with the
provisions of the | ||||||
13 | Illinois Administrative Procedure Act.
| ||||||
14 | On and after July 1, 1987, no entity otherwise eligible | ||||||
15 | under exemption
(3) of this Section shall make tax-free | ||||||
16 | purchases unless it has an active
exemption identification | ||||||
17 | number issued by the Department.
| ||||||
18 | The purchase, employment and transfer of such tangible | ||||||
19 | personal
property as newsprint and ink for the primary purpose | ||||||
20 | of conveying news
(with or without other information) is not a | ||||||
21 | purchase, use or sale of
service or of tangible personal | ||||||
22 | property within the meaning of this Act.
| ||||||
23 | "Serviceman" means any person who is engaged in the | ||||||
24 | occupation of
making sales of service.
| ||||||
25 | "Sale at retail" means "sale at retail" as defined in the | ||||||
26 | Retailers'
Occupation Tax Act.
|
| |||||||
| |||||||
1 | "Supplier" means any person who makes sales of tangible | ||||||
2 | personal
property to servicemen for the purpose of resale as an | ||||||
3 | incident to a
sale of service.
| ||||||
4 | "Serviceman maintaining a place of business in this State", | ||||||
5 | or any
like term, means and includes any serviceman:
| ||||||
6 | (1) having or maintaining within this State, directly | ||||||
7 | or by a
subsidiary, an office, distribution house, sales | ||||||
8 | house, warehouse or
other place of business, or any agent | ||||||
9 | or other representative operating
within this State under | ||||||
10 | the authority of the serviceman or its
subsidiary, | ||||||
11 | irrespective of whether such place of business or agent or
| ||||||
12 | other representative is located here permanently or | ||||||
13 | temporarily, or
whether such serviceman or subsidiary is | ||||||
14 | licensed to do business in this
State; | ||||||
15 | (1.1) having a contract with a person located in this | ||||||
16 | State under which the person, for a commission or other | ||||||
17 | consideration based on the sale of service by the | ||||||
18 | serviceman, directly or indirectly refers potential | ||||||
19 | customers to the serviceman by providing to the potential | ||||||
20 | customers a promotional code or other mechanism that allows | ||||||
21 | the serviceman to track purchases referred by such persons. | ||||||
22 | Examples of mechanisms that allow the serviceman to track | ||||||
23 | purchases referred by such persons include but are not | ||||||
24 | limited to the use of a link on the person's Internet | ||||||
25 | website, promotional codes distributed through the | ||||||
26 | person's hand-delivered or mailed material, and |
| |||||||
| |||||||
1 | promotional codes distributed by the person through radio | ||||||
2 | or other broadcast media. The provisions of this paragraph | ||||||
3 | (1.1) shall apply only if the cumulative gross receipts | ||||||
4 | from sales of service by the serviceman to customers who | ||||||
5 | are referred to the serviceman by all persons in this State | ||||||
6 | under such contracts exceed $10,000 during the preceding 4 | ||||||
7 | quarterly periods ending on the last day of March, June, | ||||||
8 | September, and December; a serviceman meeting the | ||||||
9 | requirements of this paragraph (1.1) shall be presumed to | ||||||
10 | be maintaining a place of business in this State but may | ||||||
11 | rebut this presumption by submitting proof that the | ||||||
12 | referrals or other activities pursued within this State by | ||||||
13 | such persons were not sufficient to meet the nexus | ||||||
14 | standards of the United States Constitution during the | ||||||
15 | preceding 4 quarterly periods; | ||||||
16 | (1.2) beginning July 1, 2011, having a contract with a | ||||||
17 | person located in this State under which: | ||||||
18 | (A) the serviceman sells the same or substantially | ||||||
19 | similar line of services as the person located in this | ||||||
20 | State and does so using an identical or substantially | ||||||
21 | similar name, trade name, or trademark as the person | ||||||
22 | located in this State; and | ||||||
23 | (B) the serviceman provides a commission or other | ||||||
24 | consideration to the person located in this State based | ||||||
25 | upon the sale of services by the serviceman. | ||||||
26 | The provisions of this paragraph (1.2) shall apply only if |
| |||||||
| |||||||
1 | the cumulative gross receipts from sales of service by the | ||||||
2 | serviceman to customers in this State under all such | ||||||
3 | contracts exceed $10,000 during the preceding 4 quarterly | ||||||
4 | periods ending on the last day of March, June, September, | ||||||
5 | and December;
| ||||||
6 | (2) soliciting orders for tangible personal property | ||||||
7 | by means of a
telecommunication or television shopping | ||||||
8 | system (which utilizes toll free
numbers) which is intended | ||||||
9 | by the retailer to be broadcast by cable
television or | ||||||
10 | other means of broadcasting, to consumers located in this | ||||||
11 | State;
| ||||||
12 | (3) pursuant to a contract with a broadcaster or | ||||||
13 | publisher located in this
State, soliciting orders for | ||||||
14 | tangible personal property by means of advertising
which is | ||||||
15 | disseminated primarily to consumers located in this State | ||||||
16 | and only
secondarily to bordering jurisdictions;
| ||||||
17 | (4) soliciting orders for tangible personal property | ||||||
18 | by mail if the
solicitations are substantial and recurring | ||||||
19 | and if the retailer benefits
from any banking, financing, | ||||||
20 | debt collection, telecommunication, or
marketing | ||||||
21 | activities occurring in this State or benefits from the | ||||||
22 | location
in this State of authorized installation, | ||||||
23 | servicing, or repair facilities;
| ||||||
24 | (5) being owned or controlled by the same interests | ||||||
25 | which own or
control any retailer engaging in business in | ||||||
26 | the same or similar line of
business in this State;
|
| |||||||
| |||||||
1 | (6) having a franchisee or licensee operating under its | ||||||
2 | trade name if
the franchisee or licensee is required to | ||||||
3 | collect the tax under this Section;
| ||||||
4 | (7) pursuant to a contract with a cable television | ||||||
5 | operator located in
this State, soliciting orders for | ||||||
6 | tangible personal property by means of
advertising which is | ||||||
7 | transmitted or distributed over a cable television
system | ||||||
8 | in this State;
| ||||||
9 | (8) engaging in activities in Illinois, which | ||||||
10 | activities in the
state in which the supply business | ||||||
11 | engaging in such activities is located
would constitute | ||||||
12 | maintaining a place of business in that state; or
| ||||||
13 | (9) beginning October 1, 2018, making sales of service | ||||||
14 | to purchasers in Illinois from outside of Illinois if: | ||||||
15 | (A) the cumulative gross receipts from sales of | ||||||
16 | service to purchasers in Illinois are $100,000 or more; | ||||||
17 | or | ||||||
18 | (B) the serviceman enters into 200 or more separate | ||||||
19 | transactions for sales of service to purchasers in | ||||||
20 | Illinois. | ||||||
21 | The serviceman shall determine on a quarterly basis, | ||||||
22 | ending on the last day of March, June, September, and | ||||||
23 | December, whether he or she meets the criteria of either | ||||||
24 | subparagraph (A) or (B) of this paragraph (9) for the | ||||||
25 | preceding 12-month period. If the serviceman meets the | ||||||
26 | criteria of either subparagraph (A) or (B) for a 12-month |
| |||||||
| |||||||
1 | period, he or she is considered a serviceman maintaining a | ||||||
2 | place of business in this State and is required to collect | ||||||
3 | and remit the tax imposed under this Act and file returns | ||||||
4 | for one year. At the end of that one-year period, the | ||||||
5 | serviceman shall determine whether the serviceman met the | ||||||
6 | criteria of either subparagraph (A) or (B) during the | ||||||
7 | preceding 12-month period. If the serviceman met the | ||||||
8 | criteria in either subparagraph (A) or (B) for the | ||||||
9 | preceding 12-month period, he or she is considered a | ||||||
10 | serviceman maintaining a place of business in this State | ||||||
11 | and is required to collect and remit the tax imposed under | ||||||
12 | this Act and file returns for the subsequent year. If at | ||||||
13 | the end of a one-year period a serviceman that was required | ||||||
14 | to collect and remit the tax imposed under this Act | ||||||
15 | determines that he or she did not meet the criteria in | ||||||
16 | either subparagraph (A) or (B) during the preceding | ||||||
17 | 12-month period, the serviceman subsequently shall | ||||||
18 | determine on a quarterly basis, ending on the last day of | ||||||
19 | March, June, September, and December, whether he or she | ||||||
20 | meets the criteria of either subparagraph (A) or (B) for | ||||||
21 | the preceding 12-month period. | ||||||
22 | Beginning January 1, 2020, neither the gross receipts | ||||||
23 | from nor the number of separate transactions for sales of | ||||||
24 | service to purchasers in Illinois that a serviceman makes | ||||||
25 | through a marketplace facilitator and for which the | ||||||
26 | serviceman has received a certification from the |
| |||||||
| |||||||
1 | marketplace facilitator pursuant to Section 2d of this Act | ||||||
2 | shall be included for purposes of determining whether he or | ||||||
3 | she has met the thresholds of this paragraph (9). | ||||||
4 | (10) Beginning January 1, 2020, a marketplace | ||||||
5 | facilitator, as defined in Section 2d of this Act. | ||||||
6 | (Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; | ||||||
7 | 100-587, eff. 6-4-18; 100-863, eff. 8-14-18.)
| ||||||
8 | (35 ILCS 110/2d new) | ||||||
9 | Sec. 2d. Marketplace facilitators and marketplace | ||||||
10 | servicemen. | ||||||
11 | (a) Definitions. For purposes of this Section: | ||||||
12 | "Affiliate" means a person that, with respect to another | ||||||
13 | person: (i) has a direct or indirect ownership interest of more | ||||||
14 | than 5% in the other person; or (ii) is related to the other | ||||||
15 | person because a third person, or group of third persons who | ||||||
16 | are affiliated with each other as defined in this subsection, | ||||||
17 | holds a direct or indirect ownership interest of more than 5% | ||||||
18 | in the related person. | ||||||
19 | "Marketplace" means a physical or electronic place, forum, | ||||||
20 | platform, application or other method by which a marketplace | ||||||
21 | serviceman makes or offers to make sales of service. | ||||||
22 | "Marketplace facilitator" means a person who, pursuant to | ||||||
23 | an agreement with a marketplace serviceman, facilitates sales | ||||||
24 | of service by that marketplace serviceman. A person facilitates | ||||||
25 | a sale of service by, directly or indirectly through one or |
| |||||||
| |||||||
1 | more affiliates, doing both of the following: (i) listing or | ||||||
2 | otherwise making available a sale of service of the marketplace | ||||||
3 | serviceman through a marketplace owned or operated by the | ||||||
4 | marketplace facilitator; and (ii) processing sales of service | ||||||
5 | for, or payments for sales of service by, marketplace | ||||||
6 | servicemen. | ||||||
7 | "Marketplace serviceman" means a person that makes or | ||||||
8 | offers to make a sale of service through a marketplace. | ||||||
9 | (b) Beginning January 1, 2020, a marketplace facilitator | ||||||
10 | who meets either of the following criteria is considered the | ||||||
11 | serviceman for each sale of service made on the marketplace: | ||||||
12 | (1) the cumulative gross receipts from sales of service | ||||||
13 | to purchasers in Illinois by the marketplace facilitator | ||||||
14 | and by marketplace servicemen are $100,000 or more; or | ||||||
15 | (2) the marketplace facilitator and marketplace | ||||||
16 | servicemen cumulatively enter into 200 or more separate | ||||||
17 | transactions for the sale of service to purchasers in | ||||||
18 | Illinois. | ||||||
19 | A marketplace facilitator shall determine on a quarterly | ||||||
20 | basis, ending on the last day of March, June, September, and | ||||||
21 | December, whether he or she meets the criteria of either | ||||||
22 | paragraph (1) or (2) of this subsection (b) for the preceding | ||||||
23 | 12-month period. If the marketplace facilitator meets the | ||||||
24 | criteria of either paragraph (1) or (2) for a 12-month period, | ||||||
25 | he or she is considered a serviceman maintaining a place of | ||||||
26 | business in this State and is required to collect and remit the |
| |||||||
| |||||||
1 | tax imposed under this Act and file returns for one year. At | ||||||
2 | the end of that one-year period, the marketplace facilitator | ||||||
3 | shall determine whether the marketplace facilitator met the | ||||||
4 | criteria of either paragraph (1) or (2) during the preceding | ||||||
5 | 12-month period. If the marketplace facilitator met the | ||||||
6 | criteria in either paragraph (1) or (2) for the preceding | ||||||
7 | 12-month period, he or she is considered a serviceman | ||||||
8 | maintaining a place of business in this State and is required | ||||||
9 | to collect and remit the tax imposed under this Act and file | ||||||
10 | returns for the subsequent year. If, at the end of a one-year | ||||||
11 | period, a marketplace facilitator that was required to collect | ||||||
12 | and remit the tax imposed under this Act determines that he or | ||||||
13 | she did not meet the criteria in either paragraph (1) or (2) | ||||||
14 | during the preceding 12-month period, the marketplace | ||||||
15 | facilitator shall subsequently determine on a quarterly basis, | ||||||
16 | ending on the last day of March, June, September, and December, | ||||||
17 | whether he or she meets the criteria of either paragraph (1) or | ||||||
18 | (2) for the preceding 12-month period. | ||||||
19 | (c) A marketplace facilitator that meets either of the | ||||||
20 | thresholds in subsection (b) of this Section is considered the | ||||||
21 | serviceman for each sale of service made through its | ||||||
22 | marketplace and is liable for collecting and remitting the tax | ||||||
23 | under this Act on all such sales. The marketplace facilitator | ||||||
24 | has all the rights and duties, and is required to comply with | ||||||
25 | the same requirements and procedures, as all other servicemen | ||||||
26 | maintaining a place of business in this State who are |
| |||||||
| |||||||
1 | registered or who are required to be registered to collect and | ||||||
2 | remit the tax imposed by this Act. | ||||||
3 | (d) A marketplace facilitator shall: | ||||||
4 | (1) certify to each marketplace serviceman that the | ||||||
5 | marketplace facilitator assumes the rights and duties of a | ||||||
6 | serviceman under this Act with respect to sales of service | ||||||
7 | made by the marketplace serviceman through the | ||||||
8 | marketplace; and | ||||||
9 | (2) collect taxes imposed by this Act as required by | ||||||
10 | Section 3-40 of this Act for sales of service made through | ||||||
11 | the marketplace. | ||||||
12 | (e) A marketplace serviceman shall retain books and records | ||||||
13 | for all sales of service made through a marketplace in | ||||||
14 | accordance with the requirements of Section 11. | ||||||
15 | (f) A marketplace serviceman shall furnish to the | ||||||
16 | marketplace facilitator information that is necessary for the | ||||||
17 | marketplace facilitator to correctly collect and remit taxes | ||||||
18 | for a sale of service. The information may include a | ||||||
19 | certification that an item transferred incident to a sale of | ||||||
20 | service under this Act is taxable, not taxable, exempt from | ||||||
21 | taxation, or taxable at a specified rate. A marketplace | ||||||
22 | serviceman shall be held harmless for liability for the tax | ||||||
23 | imposed under this Act when a marketplace facilitator fails to | ||||||
24 | correctly collect and remit tax after having been provided with | ||||||
25 | information by a marketplace serviceman to correctly collect | ||||||
26 | and remit taxes imposed under this Act. |
| |||||||
| |||||||
1 | (g) Except as provided in subsection (h), if the | ||||||
2 | marketplace facilitator demonstrates to the satisfaction of | ||||||
3 | the Department that its failure to correctly collect and remit | ||||||
4 | tax on a sale of service resulted from the marketplace | ||||||
5 | facilitator's good faith reliance on incorrect or insufficient | ||||||
6 | information provided by a marketplace serviceman, it shall be | ||||||
7 | relieved of liability for the tax on that sale of service. In | ||||||
8 | this case, a marketplace serviceman is liable for any resulting | ||||||
9 | tax due. | ||||||
10 | (h) A marketplace facilitator and marketplace serviceman | ||||||
11 | that are affiliates, as defined by subsection (a), are jointly | ||||||
12 | and severally liable for tax liability resulting from a sale of | ||||||
13 | service made by the affiliated marketplace serviceman through | ||||||
14 | the marketplace. | ||||||
15 | (i) This Section does not affect the tax liability of a | ||||||
16 | purchaser under this Act. | ||||||
17 | (j) The Department may adopt rules for the administration | ||||||
18 | and enforcement of the provisions of this Section.
| ||||||
19 | Section 10-35. The Tax Delinquency Amnesty Act is amended | ||||||
20 | by changing Section 10 as follows:
| ||||||
21 | (35 ILCS 745/10)
| ||||||
22 | Sec. 10. Amnesty program. The Department shall establish an | ||||||
23 | amnesty
program for all taxpayers owing any tax imposed by | ||||||
24 | reason of or pursuant to
authorization by any law of the State |
| |||||||
| |||||||
1 | of Illinois and collected by the
Department.
| ||||||
2 | The amnesty program shall be for a period from October 1, | ||||||
3 | 2003 through
November 15, 2003 and for a period beginning on | ||||||
4 | October 1, 2010 and ending November 8, 2010 and for a period | ||||||
5 | beginning on October 1, 2019 and ending on November 15, 2019 .
| ||||||
6 | The amnesty program shall provide that, upon payment by a | ||||||
7 | taxpayer of all
taxes
due from that taxpayer to the State of | ||||||
8 | Illinois for any taxable period ending
(i) after June 30,
1983 | ||||||
9 | and prior to July 1, 2002 for the tax amnesty period occurring | ||||||
10 | from October 1, 2003 through
November 15, 2003, and (ii) after | ||||||
11 | June 30, 2002 and prior to July 1, 2009 for the tax amnesty | ||||||
12 | period beginning on October 1, 2010 through November 8, 2010, | ||||||
13 | and (iii) after June 30, 2011 and prior to July 1, 2018 for the | ||||||
14 | tax amnesty period beginning on October 1, 2019 through | ||||||
15 | November 15, 2019, the
Department shall abate and not seek to | ||||||
16 | collect any interest or penalties that
may be
applicable and | ||||||
17 | the Department shall not seek civil or criminal prosecution for
| ||||||
18 | any taxpayer for the period of time for which amnesty has been | ||||||
19 | granted to the
taxpayer. Failure to pay all taxes due to the | ||||||
20 | State for a taxable period shall
invalidate any
amnesty granted | ||||||
21 | under this Act. Amnesty shall be granted only if all amnesty
| ||||||
22 | conditions are
satisfied by the taxpayer.
| ||||||
23 | Amnesty shall not be granted to taxpayers who are a party | ||||||
24 | to any criminal
investigation or to any civil or criminal | ||||||
25 | litigation that is pending in any
circuit court or appellate | ||||||
26 | court or the Supreme Court of this State for
nonpayment, |
| |||||||
| |||||||
1 | delinquency, or fraud in relation to any State tax imposed by | ||||||
2 | any
law of the State of Illinois.
| ||||||
3 | Participation in an amnesty program shall not preclude a | ||||||
4 | taxpayer from claiming a refund for an overpayment of tax on an | ||||||
5 | issue unrelated to the issues for which the taxpayer claimed | ||||||
6 | amnesty or for an overpayment of tax by taxpayers estimating a | ||||||
7 | non-final liability for the amnesty program pursuant to Section | ||||||
8 | 506(b) of the Illinois Income Tax Act (35 ILCS 5/506(b)). | ||||||
9 | Voluntary payments made under this Act shall be made by | ||||||
10 | cash, check,
guaranteed remittance, or ACH debit.
| ||||||
11 | The Department shall adopt rules as necessary to implement | ||||||
12 | the provisions of
this Act.
| ||||||
13 | Except as otherwise provided in this Section, all money | ||||||
14 | collected under this
Act that would otherwise be deposited into | ||||||
15 | the General Revenue Fund shall be
deposited as
follows: (i) | ||||||
16 | one-half into the Common School Fund; (ii) one-half into the
| ||||||
17 | General
Revenue Fund. Two percent of all money collected under | ||||||
18 | this Act shall be
deposited by
the State Treasurer into the Tax | ||||||
19 | Compliance and Administration Fund and,
subject to
| ||||||
20 | appropriation, shall be used by the Department to cover costs | ||||||
21 | associated with
the administration of this Act.
| ||||||
22 | (Source: P.A. 96-1435, eff. 8-16-10.)
| ||||||
23 | Section 10-40. The Health Maintenance Organization Act is | ||||||
24 | amended by changing Section 5-5 and by adding Section 5-10 as | ||||||
25 | follows:
|
| |||||||
| |||||||
1 | (215 ILCS 125/5-5) (from Ch. 111 1/2, par. 1413)
| ||||||
2 | Sec. 5-5. Suspension, revocation or denial of | ||||||
3 | certification of authority. The Director may suspend or revoke | ||||||
4 | any certificate of authority issued
to a health maintenance | ||||||
5 | organization under this Act or deny an
application for a | ||||||
6 | certificate of authority if he finds any of the
following:
| ||||||
7 | (a) The health maintenance organization is operating | ||||||
8 | significantly
in contravention of its basic organizational | ||||||
9 | document, its health care
plan, or in a manner contrary to that | ||||||
10 | described in any information
submitted under Section 2-1 or | ||||||
11 | 4-12.
| ||||||
12 | (b) The health maintenance organization issues contracts | ||||||
13 | or
evidences of coverage or uses a schedule of charges for | ||||||
14 | health care
services that do not comply with the requirement of | ||||||
15 | Section 2-1
or 4-12.
| ||||||
16 | (c) The health care plan does not provide or arrange for | ||||||
17 | basic health
care services, except as provided in Section 4-13 | ||||||
18 | concerning mental health
services for clients of the Department | ||||||
19 | of Children and Family Services.
| ||||||
20 | (d) The Director of Public Health certifies to the Director | ||||||
21 | that
(1) the health maintenance organization does not meet the | ||||||
22 | requirements of
Section 2-2 or (2) the health maintenance | ||||||
23 | organization is unable to fulfill
its obligations to furnish | ||||||
24 | health care services as required under its
health care plan. | ||||||
25 | The Department of Public Health shall promulgate by
rule, |
| |||||||
| |||||||
1 | pursuant to the Illinois Administrative Procedure Act, the | ||||||
2 | precise
standards used for determining what constitutes a | ||||||
3 | material
misrepresentation, what constitutes a material | ||||||
4 | violation of a contract or
evidence of coverage, or what | ||||||
5 | constitutes good faith with regard to
certification under this | ||||||
6 | paragraph.
| ||||||
7 | (e) The health maintenance organization is no longer | ||||||
8 | financially
responsible and may reasonably be expected to be | ||||||
9 | unable to meet its
obligations to enrollees or prospective | ||||||
10 | enrollees.
| ||||||
11 | (f) The health maintenance organization, or any person on | ||||||
12 | its behalf,
has advertised or merchandised its services in an | ||||||
13 | untrue, misrepresentative,
misleading, deceptive, or unfair | ||||||
14 | manner.
| ||||||
15 | (g) The continued operation of the health maintenance | ||||||
16 | organization would
be hazardous to its enrollees.
| ||||||
17 | (h) The health maintenance organization has neglected to | ||||||
18 | correct, within the
time prescribed by subsection (c) of | ||||||
19 | Section 2-4, any deficiency occurring due
to the organization's | ||||||
20 | prescribed minimum net worth or special contingent
reserve | ||||||
21 | being impaired.
| ||||||
22 | (i) The health maintenance organization has otherwise | ||||||
23 | failed to
substantially comply with this Act.
| ||||||
24 | (j) The health maintenance organization has failed to meet | ||||||
25 | the
requirements for issuance of a certificate of authority set | ||||||
26 | forth in
Section 2-2.
|
| |||||||
| |||||||
1 | When the certificate of authority of a health maintenance | ||||||
2 | organization
is revoked, the organization shall proceed, | ||||||
3 | immediately following the
effective date of the order of | ||||||
4 | revocation, to wind up its affairs and shall
conduct no further | ||||||
5 | business except as may be essential to the orderly
conclusion | ||||||
6 | of the affairs of the organization. The Director may permit | ||||||
7 | further
operation of the organization that he finds to be in | ||||||
8 | the best interest of
enrollees to the end that the enrollees | ||||||
9 | will be afforded the greatest practical
opportunity to obtain | ||||||
10 | health care services.
| ||||||
11 | (k) The health maintenance organization has failed to pay | ||||||
12 | any assessment due under Article V-H of the Public Aid Code for | ||||||
13 | 60 days following the due date of the payment (as extended by | ||||||
14 | any grace period granted). | ||||||
15 | (Source: P.A. 88-487.)
| ||||||
16 | (215 ILCS 125/5-10 new) | ||||||
17 | Sec. 5-10. Managed care organizations; revenue data. | ||||||
18 | (a) No managed care organization shall pass the cost of the | ||||||
19 | assessment imposed pursuant to Article V-H of the Public Aid | ||||||
20 | Code on to consumers as a discrete addition to their premiums. | ||||||
21 | (b) The Department shall provide the Department of | ||||||
22 | Healthcare and Family Services with member months and premium | ||||||
23 | revenue data needed for implementing the assessment imposed | ||||||
24 | under Article V-H of the Public Aid Code.
|
| |||||||
| |||||||
1 | Section 10-45. The Illinois Public Aid Code is amended by | ||||||
2 | adding the Article V-H as follows:
| ||||||
3 | (305 ILCS 5/Art. V-H heading new) | ||||||
4 | ARTICLE V-H. MANAGED CARE ORGANIZATION PROVIDER ASSESSMENT. | ||||||
5 | (305 ILCS 5/5H-1 new) | ||||||
6 | Sec. 5H-1. Definitions. As used in this Article: | ||||||
7 | "Base year" means the 12-month period from January 1, 2018 | ||||||
8 | to December 31, 2018. | ||||||
9 | "Department" means the Department of Healthcare and Family | ||||||
10 | Services. | ||||||
11 | "Federal employee health benefit" means the program of | ||||||
12 | health benefits plans, as defined in 5 U.S.C. 8901, available | ||||||
13 | to federal employees under 5 U.S.C. 8901 to 8914. | ||||||
14 | "Fund" means the Healthcare Provider Relief Fund. | ||||||
15 | "Managed care organization" means an entity operating | ||||||
16 | under a certificate of authority issued pursuant to the Health | ||||||
17 | Maintenance Organization Act or as a Managed Care Community | ||||||
18 | Network pursuant to Section 5-11 of the Public Aid Code. | ||||||
19 | "Medicaid managed care organization" means a managed care | ||||||
20 | organization under contract with the Department to provide | ||||||
21 | services to recipients of benefits in the medical assistance | ||||||
22 | program pursuant to Article V of the Public Aid Code, the | ||||||
23 | Children's Health Insurance Program Act, or the Covering ALL | ||||||
24 | KIDS Health Insurance Act. It does not include contracts the |
| |||||||
| |||||||
1 | same entity or an affiliated entity has for other business. | ||||||
2 | "Medicare" means the federal Medicare program established | ||||||
3 | under Title XVIII of the federal Social Security Act. | ||||||
4 | "Member months" means the aggregate total number of months | ||||||
5 | all individuals are enrolled for coverage in a Managed Care | ||||||
6 | Organization during the base year. Member months are determined | ||||||
7 | by the Department for Medicaid Managed Care Organizations based | ||||||
8 | on enrollment data in its Medicaid Management Information | ||||||
9 | System and by the Department of Insurance for other Managed | ||||||
10 | Care Organizations based on required filings with the | ||||||
11 | Department of Insurance. Member months do not include months | ||||||
12 | individuals are enrolled in a Limited Health Services | ||||||
13 | Organization, including stand-alone dental or vision plans, a | ||||||
14 | Medicare Advantage Plan, a Medicare Supplement Plan, a Medicaid | ||||||
15 | Medicare Alignment Initiate Plan pursuant to a Memorandum of | ||||||
16 | Understanding between the Department and the Federal Centers | ||||||
17 | for Medicare and Medicaid Services or a Federal Employee Health | ||||||
18 | Benefits Plan.
| ||||||
19 | (305 ILCS 5/5H-2 new) | ||||||
20 | Sec. 5H-2. Federal waivers. The Department shall request a | ||||||
21 | waiver from the federal Centers for Medicare and Medicaid | ||||||
22 | Services of the broad-based and uniformity provisions of | ||||||
23 | Section 1903(w)(3)(B) and (C) of Title XIX of the Social | ||||||
24 | Security Act, 42 U.S.C. 1396b, relating to the assessment | ||||||
25 | imposed under this Article. The assessment required pursuant to |
| |||||||
| |||||||
1 | Section 5H-3 shall not be due and payable until such waiver has | ||||||
2 | been approved and all other federal requirements necessary to | ||||||
3 | obtain federal financial participation have been approved by | ||||||
4 | the Centers for Medicare and Medicaid Services.
| ||||||
5 | (305 ILCS 5/5H-3 new) | ||||||
6 | Sec. 5H-3. Managed care assessment. | ||||||
7 | (a) For State Fiscal year 2020 through State Fiscal Year | ||||||
8 | 2025, there is imposed upon managed care organization member | ||||||
9 | months an assessment, calculated on base year data, as set | ||||||
10 | forth below for the appropriate tier: | ||||||
11 | (1) Tier 1: $60.20 per member month. | ||||||
12 | (2) Tier 2: $1.20 per member month. | ||||||
13 | (3) Tier 3: $2.40 per member month. | ||||||
14 | (b) The tiers are established as follows: | ||||||
15 | (1) Tier 1 includes the first 4,195,000 member months | ||||||
16 | in a Medicaid managed care organization for the base year; | ||||||
17 | (ii) Tier 2 includes member months over 4,195,000 in a | ||||||
18 | Medicaid managed care organization during the base year; | ||||||
19 | and | ||||||
20 | (iv) Tier 3 includes member months during the base year | ||||||
21 | in a managed care organization that is not a Medicaid | ||||||
22 | managed care organization. | ||||||
23 | (c) For State fiscal year 2020 through State fiscal year | ||||||
24 | 2025, the Department may by rule adjust rates or tier | ||||||
25 | parameters or both in order to maximize the revenue generated |
| |||||||
| |||||||
1 | by the assessment consistent with federal regulations and to | ||||||
2 | meet federal statistical tests necessary for federal financial | ||||||
3 | participation. Any upward adjustment to the Tier 3 rate shall | ||||||
4 | be the minimum necessary to meet federal statistical tests.
| ||||||
5 | (305 ILCS 5/5H-4 new) | ||||||
6 | Sec. 5H-4. Payment of assessment. | ||||||
7 | (a) The assessment payable pursuant to Section 5H-3 shall | ||||||
8 | be due and payable in monthly installments, each equaling | ||||||
9 | one-twelfth of the assessment for the year, on the first State | ||||||
10 | business day of each month. | ||||||
11 | (b) If the approval of the waivers required under Section | ||||||
12 | 5H-2 is delayed beyond the start of State fiscal year 2020, | ||||||
13 | then the first installment shall be due on the first business | ||||||
14 | day of the first month that begins more than 15 days after the | ||||||
15 | date of such approval. In the event approval results in | ||||||
16 | installments beginning after July 1, 2019, the amount of each | ||||||
17 | installment for that fiscal year shall equal the full amount of | ||||||
18 | the annual assessment divided by the number of payments that | ||||||
19 | will be paid in fiscal year 2020. | ||||||
20 | (c) The Department shall notify each managed care | ||||||
21 | organization of its annual fiscal year 2020 assessment and the | ||||||
22 | installment due dates no later than 30 days prior to the first | ||||||
23 | installment due date and the annual assessment and due dates | ||||||
24 | for each subsequent year at least 30 days prior to the start of | ||||||
25 | each fiscal year. |
| |||||||
| |||||||
1 | (d) Proceeds from the assessment levied pursuant to Section | ||||||
2 | 5H-3 shall be deposited into the Fund.
| ||||||
3 | (305 ILCS 5/5H-5 new) | ||||||
4 | Sec. 5H-5. Liability or resultant entities. In the event of | ||||||
5 | a merger, acquisition, or any similar transaction involving | ||||||
6 | entities subject to the assessment under this Article, the | ||||||
7 | resultant entity shall be responsible for the full amount of | ||||||
8 | the assessment for all entities involved in the transaction | ||||||
9 | with the member months allotted to tiers as they were prior to | ||||||
10 | the transaction and no member months shall change tiers as a | ||||||
11 | result of any transaction. A managed care organization that | ||||||
12 | ceases doing business in the State during any fiscal year shall | ||||||
13 | be liable only for the monthly installments due in months that | ||||||
14 | they operated in the State. The Department shall by rule | ||||||
15 | establish a methodology to set the assessment base member | ||||||
16 | months for a managed care organization that begins operating in | ||||||
17 | the State at any time after 2018. Nothing in this Section shall | ||||||
18 | be construed to limit authority granted in subsection (c) of | ||||||
19 | Section 5H-3.
| ||||||
20 | (305 ILCS 5/5H-6 new) | ||||||
21 | Sec. 5H-6. Recordkeeping; penalties. | ||||||
22 | (a) A managed care organization that is liable for the | ||||||
23 | assessment under this Article shall keep accurate and complete | ||||||
24 | records and pertinent documents as may be required by the |
| |||||||
| |||||||
1 | Department. Records required by the Department shall be | ||||||
2 | retained for a period of 4 years after the assessment imposed | ||||||
3 | under this Act to which the records apply is due or as | ||||||
4 | otherwise provided by law. The Department or the Department of | ||||||
5 | Insurance may audit all records necessary to ensure compliance | ||||||
6 | with this Article and make adjustments to assessment amounts | ||||||
7 | previously calculated based on the results of any such audit. | ||||||
8 | (b) If a managed care organization fails to make a payment | ||||||
9 | due under this Article in a timely fashion, they shall pay an | ||||||
10 | additional penalty of 5% of the amount of the installment not | ||||||
11 | paid on or before the due date, or any grace period granted, | ||||||
12 | plus 5% of the portion thereof remaining unpaid on the last day | ||||||
13 | of each 30-day period thereafter. The Department is authorized | ||||||
14 | to grant grace periods of up to 30 days upon request of a | ||||||
15 | managed care organization for good cause due to financial or | ||||||
16 | other difficulties, as determined by the Department. If a | ||||||
17 | managed care organization fails to make a payment within 60 | ||||||
18 | days after the due date the Department shall additionally | ||||||
19 | impose a contractual sanction allowed against a Medicaid | ||||||
20 | managed care organization and may terminate any such contract. | ||||||
21 | The Department of Insurance shall take action against the | ||||||
22 | certificate of authority of a non-Medicaid managed care | ||||||
23 | organization that fails to pay an installment within 60 days | ||||||
24 | after the due date.
| ||||||
25 | (305 ILCS 5/5H-7 new) |
| |||||||
| |||||||
1 | Sec. 5H-7. Rulemaking. The Department may by rule modify or | ||||||
2 | make adjustments to any methodology, assessment amount, | ||||||
3 | assessment tier, or other similar provision specified in this | ||||||
4 | Article, including broadening the tax base in subsection (a) of | ||||||
5 | Section 5H-3, to the extent necessary to meet the requirements | ||||||
6 | of federal law or regulations, obtain federal approval, or to | ||||||
7 | ensure federal financial participation is available. However, | ||||||
8 | upward adjustments to Tier 3 rates shall be the minimum | ||||||
9 | necessary to meet federal statistical tests to receive federal | ||||||
10 | financial participation. The Department shall adopt rules to | ||||||
11 | implement this Article under the Illinois Administrative | ||||||
12 | Procedure Act.
| ||||||
13 | (305 ILCS 5/5H-8 new) | ||||||
14 | Sec. 5H-8. Duties of the Department. | ||||||
15 | (a) The Department shall ensure that rates to Medicaid | ||||||
16 | managed care organizations are actuarially sound including | ||||||
17 | appropriate incorporation of assessments under this Article, | ||||||
18 | other taxes and administrative expenses, including | ||||||
19 | standardization of processes, and cost of medical care. | ||||||
20 | (b) The Department shall pay to each Medicaid managed care | ||||||
21 | organization the amount required to be included in its rates | ||||||
22 | due to the assessment under this Article in order to ensure | ||||||
23 | actuarial soundness within 10 business days of receipt of each | ||||||
24 | assessment payment from the Medicaid managed care | ||||||
25 | organization. The Department shall extend the deadline for any |
| |||||||
| |||||||
1 | assessment payment due after the initial assessment payment if | ||||||
2 | the payment to the managed care organizations under this | ||||||
3 | subsection for the previous assessment payment has not been | ||||||
4 | paid. Such extension shall extend until 7 business days after | ||||||
5 | receipt by the managed care organization of the late payment | ||||||
6 | under this subsection. | ||||||
7 | (c) Reimbursement of assessments paid under this Article | ||||||
8 | shall not be required to count as revenue towards any | ||||||
9 | calculation of the managed care organization's medical loss | ||||||
10 | ratio, net worth, risk based capital or other deposit | ||||||
11 | requirements as may otherwise be required under the Insurance | ||||||
12 | Code. Such reimbursements will be considered revenue in | ||||||
13 | calculating the 6% limit under 42 U.S.C. 433.68(f)(3). | ||||||
14 | (d) The Department shall include in its annual report, | ||||||
15 | beginning with its fiscal year 2020 report, and every year | ||||||
16 | thereafter, information on the revenues collected from this | ||||||
17 | assessment, the federal funds drawn based on those revenues, | ||||||
18 | the rates set in Section 5H-3 or any alterations thereof by | ||||||
19 | administrative rule, and other impacts this gross revenue has | ||||||
20 | had on the Medicaid program.
| ||||||
21 | Section 10-50. The Franchise Tax and License Fee Amnesty | ||||||
22 | Act of 2007 is amended by changing Section 5-10 as follows:
| ||||||
23 | (805 ILCS 8/5-10)
| ||||||
24 | Sec. 5-10. Amnesty program. The Secretary shall establish |
| |||||||
| |||||||
1 | an amnesty program for all taxpayers owing any franchise tax or | ||||||
2 | license fee imposed by Article XV of the Business Corporation | ||||||
3 | Act of 1983. The amnesty program shall be for a period from | ||||||
4 | February 1, 2008 through March 15, 2008. The amnesty program | ||||||
5 | shall also be for a period between October 1, 2019 and November | ||||||
6 | 15, 2019, and shall apply to franchise tax or license fee | ||||||
7 | liabilities for any tax period ending after March 15, 2008 and | ||||||
8 | on or before June 30, 2019. The amnesty program shall provide | ||||||
9 | that, upon payment by a taxpayer of all franchise taxes and | ||||||
10 | license fees due from that taxpayer to the State of Illinois | ||||||
11 | for any taxable period, the Secretary shall abate and not seek | ||||||
12 | to collect any interest or penalties that may be applicable, | ||||||
13 | and the Secretary shall not seek civil or criminal prosecution | ||||||
14 | for any taxpayer for the period of time for which amnesty has | ||||||
15 | been granted to the taxpayer. Failure to pay all taxes due to | ||||||
16 | the State for a taxable period shall not invalidate any amnesty | ||||||
17 | granted under this Act with respect to the taxes paid pursuant | ||||||
18 | to the amnesty program. Amnesty shall be granted only if all | ||||||
19 | amnesty conditions are satisfied by the taxpayer. Amnesty shall | ||||||
20 | not be granted to taxpayers who are a party to any criminal | ||||||
21 | investigation or to any civil or criminal litigation that is | ||||||
22 | pending in any circuit court or appellate court or the Supreme | ||||||
23 | Court of this State for nonpayment, delinquency, or fraud in | ||||||
24 | relation to any franchise tax or license fee imposed by Article | ||||||
25 | XV of the Business Corporation Act of 1983. Voluntary payments | ||||||
26 | made under this Act shall be made by check, guaranteed |
| |||||||
| |||||||
1 | remittance, or ACH debit. The Secretary shall adopt rules as | ||||||
2 | necessary to implement the provisions of this Act. Except as | ||||||
3 | otherwise provided in this Section, all money collected under | ||||||
4 | this Act that would otherwise be deposited into the General | ||||||
5 | Revenue Fund shall be deposited into the General Revenue Fund. | ||||||
6 | Two percent of all money collected under this Act shall be | ||||||
7 | deposited by the State Treasurer into the Franchise Tax and | ||||||
8 | License Fee Amnesty Administration Fund and, subject to | ||||||
9 | appropriation, shall be used by the Secretary to cover costs | ||||||
10 | associated with the administration of this Act.
| ||||||
11 | (Source: P.A. 95-233, eff. 8-16-07; 95-707, eff. 1-11-08.)
| ||||||
12 | ARTICLE 20. BLUE COLLAR JOBS ACT | ||||||
13 | Section 20-1. This Act may be referred to as the Blue | ||||||
14 | Collar Jobs Act.
| ||||||
15 | Section 20-5. The Illinois Enterprise Zone Act is amended | ||||||
16 | by changing Section 5.5 and by adding Section 13 as follows:
| ||||||
17 | (20 ILCS 655/5.5)
(from Ch. 67 1/2, par. 609.1)
| ||||||
18 | Sec. 5.5. High Impact Business.
| ||||||
19 | (a) In order to respond to unique opportunities to assist | ||||||
20 | in the
encouragement, development, growth and expansion of the | ||||||
21 | private sector through
large scale investment and development | ||||||
22 | projects, the Department is authorized
to receive and approve |
| |||||||
| |||||||
1 | applications for the designation of "High Impact
Businesses" in | ||||||
2 | Illinois subject to the following conditions:
| ||||||
3 | (1) such applications may be submitted at any time | ||||||
4 | during the year;
| ||||||
5 | (2) such business is not located, at the time of | ||||||
6 | designation, in
an enterprise zone designated pursuant to | ||||||
7 | this Act;
| ||||||
8 | (3) the business intends to do one or more of the | ||||||
9 | following:
| ||||||
10 | (A) the business intends to make a minimum | ||||||
11 | investment of
$12,000,000 which will be placed in | ||||||
12 | service in qualified property and
intends to create 500 | ||||||
13 | full-time equivalent jobs at a designated location
in | ||||||
14 | Illinois or intends to make a minimum investment of | ||||||
15 | $30,000,000 which
will be placed in service in | ||||||
16 | qualified property and intends to retain 1,500
| ||||||
17 | full-time retained jobs at a designated location in | ||||||
18 | Illinois.
The business must certify in writing that the | ||||||
19 | investments would not be
placed in service in qualified | ||||||
20 | property and the job creation or job
retention would | ||||||
21 | not occur without the tax credits and exemptions set | ||||||
22 | forth
in subsection (b) of this Section. The terms | ||||||
23 | "placed in service" and
"qualified property" have the | ||||||
24 | same meanings as described in subsection (h)
of Section | ||||||
25 | 201 of the Illinois Income Tax Act; or
| ||||||
26 | (B) the business intends to establish a new |
| |||||||
| |||||||
1 | electric generating
facility at a designated location | ||||||
2 | in Illinois. "New electric generating
facility", for | ||||||
3 | purposes of this Section, means a newly-constructed
| ||||||
4 | electric
generation plant
or a newly-constructed | ||||||
5 | generation capacity expansion at an existing electric
| ||||||
6 | generation
plant, including the transmission lines and | ||||||
7 | associated
equipment that transfers electricity from | ||||||
8 | points of supply to points of
delivery, and for which | ||||||
9 | such new foundation construction commenced not sooner
| ||||||
10 | than July 1,
2001. Such facility shall be designed to | ||||||
11 | provide baseload electric
generation and shall operate | ||||||
12 | on a continuous basis throughout the year;
and (i) | ||||||
13 | shall have an aggregate rated generating capacity of at | ||||||
14 | least 1,000
megawatts for all new units at one site if | ||||||
15 | it uses natural gas as its primary
fuel and foundation | ||||||
16 | construction of the facility is commenced on
or before | ||||||
17 | December 31, 2004, or shall have an aggregate rated | ||||||
18 | generating
capacity of at least 400 megawatts for all | ||||||
19 | new units at one site if it uses
coal or gases derived | ||||||
20 | from coal
as its primary fuel and
shall support the | ||||||
21 | creation of at least 150 new Illinois coal mining jobs, | ||||||
22 | or
(ii) shall be funded through a federal Department of | ||||||
23 | Energy grant before December 31, 2010 and shall support | ||||||
24 | the creation of Illinois
coal-mining
jobs, or (iii) | ||||||
25 | shall use coal gasification or integrated | ||||||
26 | gasification-combined cycle units
that generate
|
| |||||||
| |||||||
1 | electricity or chemicals, or both, and shall support | ||||||
2 | the creation of Illinois
coal-mining
jobs.
The
| ||||||
3 | business must certify in writing that the investments | ||||||
4 | necessary to establish
a new electric generating | ||||||
5 | facility would not be placed in service and the
job | ||||||
6 | creation in the case of a coal-fueled plant
would not | ||||||
7 | occur without the tax credits and exemptions set forth | ||||||
8 | in
subsection (b-5) of this Section. The term "placed | ||||||
9 | in service" has
the same meaning as described in | ||||||
10 | subsection
(h) of Section 201 of the Illinois Income | ||||||
11 | Tax Act; or
| ||||||
12 | (B-5) the business intends to establish a new | ||||||
13 | gasification
facility at a designated location in | ||||||
14 | Illinois. As used in this Section, "new gasification | ||||||
15 | facility" means a newly constructed coal gasification | ||||||
16 | facility that generates chemical feedstocks or | ||||||
17 | transportation fuels derived from coal (which may | ||||||
18 | include, but are not limited to, methane, methanol, and | ||||||
19 | nitrogen fertilizer), that supports the creation or | ||||||
20 | retention of Illinois coal-mining jobs, and that | ||||||
21 | qualifies for financial assistance from the Department | ||||||
22 | before December 31, 2010. A new gasification facility | ||||||
23 | does not include a pilot project located within | ||||||
24 | Jefferson County or within a county adjacent to | ||||||
25 | Jefferson County for synthetic natural gas from coal; | ||||||
26 | or
|
| |||||||
| |||||||
1 | (C) the business intends to establish
production | ||||||
2 | operations at a new coal mine, re-establish production | ||||||
3 | operations at
a closed coal mine, or expand production | ||||||
4 | at an existing coal mine
at a designated location in | ||||||
5 | Illinois not sooner than July 1, 2001;
provided that | ||||||
6 | the
production operations result in the creation of 150 | ||||||
7 | new Illinois coal mining
jobs as described in | ||||||
8 | subdivision (a)(3)(B) of this Section, and further
| ||||||
9 | provided that the coal extracted from such mine is | ||||||
10 | utilized as the predominant
source for a new electric | ||||||
11 | generating facility.
The business must certify in | ||||||
12 | writing that the
investments necessary to establish a | ||||||
13 | new, expanded, or reopened coal mine would
not
be | ||||||
14 | placed in service and the job creation would not
occur | ||||||
15 | without the tax credits and exemptions set forth in | ||||||
16 | subsection (b-5) of
this Section. The term "placed in | ||||||
17 | service" has
the same meaning as described in | ||||||
18 | subsection (h) of Section 201 of the
Illinois Income | ||||||
19 | Tax Act; or
| ||||||
20 | (D) the business intends to construct new | ||||||
21 | transmission facilities or
upgrade existing | ||||||
22 | transmission facilities at designated locations in | ||||||
23 | Illinois,
for which construction commenced not sooner | ||||||
24 | than July 1, 2001. For the
purposes of this Section, | ||||||
25 | "transmission facilities" means transmission lines
| ||||||
26 | with a voltage rating of 115 kilovolts or above, |
| |||||||
| |||||||
1 | including associated
equipment, that transfer | ||||||
2 | electricity from points of supply to points of
delivery | ||||||
3 | and that transmit a majority of the electricity | ||||||
4 | generated by a new
electric generating facility | ||||||
5 | designated as a High Impact Business in accordance
with | ||||||
6 | this Section. The business must certify in writing that | ||||||
7 | the investments
necessary to construct new | ||||||
8 | transmission facilities or upgrade existing
| ||||||
9 | transmission facilities would not be placed in service
| ||||||
10 | without the tax credits and exemptions set forth in | ||||||
11 | subsection (b-5) of this
Section. The term "placed in | ||||||
12 | service" has the
same meaning as described in | ||||||
13 | subsection (h) of Section 201 of the Illinois
Income | ||||||
14 | Tax Act; or
| ||||||
15 | (E) the business intends to establish a new wind | ||||||
16 | power facility at a designated location in Illinois. | ||||||
17 | For purposes of this Section, "new wind power facility" | ||||||
18 | means a newly constructed electric generation | ||||||
19 | facility, or a newly constructed expansion of an | ||||||
20 | existing electric generation facility, placed in | ||||||
21 | service on or after July 1, 2009, that generates | ||||||
22 | electricity using wind energy devices, and such | ||||||
23 | facility shall be deemed to include all associated | ||||||
24 | transmission lines, substations, and other equipment | ||||||
25 | related to the generation of electricity from wind | ||||||
26 | energy devices. For purposes of this Section, "wind |
| |||||||
| |||||||
1 | energy device" means any device, with a nameplate | ||||||
2 | capacity of at least 0.5 megawatts, that is used in the | ||||||
3 | process of converting kinetic energy from the wind to | ||||||
4 | generate electricity; or | ||||||
5 | (F) the business commits to (i) make a minimum | ||||||
6 | investment of $500,000,000, which will be placed in | ||||||
7 | service in a qualified property, (ii) create 125 | ||||||
8 | full-time equivalent jobs at a designated location in | ||||||
9 | Illinois, (iii) establish a fertilizer plant at a | ||||||
10 | designated location in Illinois that complies with the | ||||||
11 | set-back standards as described in Table 1: Initial | ||||||
12 | Isolation and Protective Action Distances in the 2012 | ||||||
13 | Emergency Response Guidebook published by the United | ||||||
14 | States Department of Transportation, (iv) pay a | ||||||
15 | prevailing wage for employees at that location who are | ||||||
16 | engaged in construction activities, and (v) secure an | ||||||
17 | appropriate level of general liability insurance to | ||||||
18 | protect against catastrophic failure of the fertilizer | ||||||
19 | plant or any of its constituent systems; in addition, | ||||||
20 | the business must agree to enter into a construction | ||||||
21 | project labor agreement including provisions | ||||||
22 | establishing wages, benefits, and other compensation | ||||||
23 | for employees performing work under the project labor | ||||||
24 | agreement at that location; for the purposes of this | ||||||
25 | Section, "fertilizer plant" means a newly constructed | ||||||
26 | or upgraded plant utilizing gas used in the production |
| |||||||
| |||||||
1 | of anhydrous ammonia and downstream nitrogen | ||||||
2 | fertilizer products for resale; for the purposes of | ||||||
3 | this Section, "prevailing wage" means the hourly cash | ||||||
4 | wages plus fringe benefits for training and
| ||||||
5 | apprenticeship programs approved by the U.S. | ||||||
6 | Department of Labor, Bureau of
Apprenticeship and | ||||||
7 | Training, health and welfare, insurance, vacations and
| ||||||
8 | pensions paid generally, in the
locality in which the | ||||||
9 | work is being performed, to employees engaged in
work | ||||||
10 | of a similar character on public works; this paragraph | ||||||
11 | (F) applies only to businesses that submit an | ||||||
12 | application to the Department within 60 days after the | ||||||
13 | effective date of this amendatory Act of the 98th | ||||||
14 | General Assembly; and
| ||||||
15 | (4) no later than 90 days after an application is | ||||||
16 | submitted, the
Department shall notify the applicant of the | ||||||
17 | Department's determination of
the qualification of the | ||||||
18 | proposed High Impact Business under this Section.
| ||||||
19 | (b) Businesses designated as High Impact Businesses | ||||||
20 | pursuant to
subdivision (a)(3)(A) of this Section shall qualify | ||||||
21 | for the credits and
exemptions described in the
following Acts: | ||||||
22 | Section 9-222 and Section 9-222.1A of the Public Utilities
Act,
| ||||||
23 | subsection (h)
of Section 201 of the Illinois Income Tax Act,
| ||||||
24 | and Section 1d of
the
Retailers' Occupation Tax Act; provided | ||||||
25 | that these credits and
exemptions
described in these Acts shall | ||||||
26 | not be authorized until the minimum
investments set forth in |
| |||||||
| |||||||
1 | subdivision (a)(3)(A) of this
Section have been placed in
| ||||||
2 | service in qualified properties and, in the case of the | ||||||
3 | exemptions
described in the Public Utilities Act and Section 1d | ||||||
4 | of the Retailers'
Occupation Tax Act, the minimum full-time | ||||||
5 | equivalent jobs or full-time retained jobs set
forth in | ||||||
6 | subdivision (a)(3)(A) of this Section have been
created or | ||||||
7 | retained.
Businesses designated as High Impact Businesses | ||||||
8 | under
this Section shall also
qualify for the exemption | ||||||
9 | described in Section 5l of the Retailers' Occupation
Tax Act. | ||||||
10 | The credit provided in subsection (h) of Section 201 of the | ||||||
11 | Illinois
Income Tax Act shall be applicable to investments in | ||||||
12 | qualified property as set
forth in subdivision (a)(3)(A) of | ||||||
13 | this Section.
| ||||||
14 | (b-5) Businesses designated as High Impact Businesses | ||||||
15 | pursuant to
subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C), | ||||||
16 | and (a)(3)(D) of this Section shall qualify
for the credits and | ||||||
17 | exemptions described in the following Acts: Section 51 of
the | ||||||
18 | Retailers' Occupation Tax Act, Section 9-222 and Section | ||||||
19 | 9-222.1A of the
Public Utilities Act, and subsection (h) of | ||||||
20 | Section 201 of the Illinois Income
Tax Act; however, the | ||||||
21 | credits and exemptions authorized under Section 9-222 and
| ||||||
22 | Section 9-222.1A of the Public Utilities Act, and subsection | ||||||
23 | (h) of Section 201
of the Illinois Income Tax Act shall not be | ||||||
24 | authorized until the new electric
generating facility, the new | ||||||
25 | gasification facility, the new transmission facility, or the | ||||||
26 | new, expanded, or
reopened coal mine is operational,
except |
| |||||||
| |||||||
1 | that a new electric generating facility whose primary fuel | ||||||
2 | source is
natural gas is eligible only for the exemption under | ||||||
3 | Section 5l of the
Retailers' Occupation Tax Act.
| ||||||
4 | (b-6) Businesses designated as High Impact Businesses | ||||||
5 | pursuant to subdivision (a)(3)(E) of this Section shall qualify | ||||||
6 | for the exemptions described in Section 5l of the Retailers' | ||||||
7 | Occupation Tax Act; any business so designated as a High Impact | ||||||
8 | Business being, for purposes of this Section, a "Wind Energy | ||||||
9 | Business". | ||||||
10 | (b-7) Beginning on January 1, 2021, businesses designated | ||||||
11 | as High Impact Businesses by the Department shall qualify for | ||||||
12 | the High Impact Business construction jobs credit under | ||||||
13 | subsection (h-5) of Section 201 of the Illinois Income Tax Act | ||||||
14 | if the business meets the criteria set forth in subsection (i) | ||||||
15 | of this Section. The total aggregate amount of credits awarded | ||||||
16 | under the Blue Collar Jobs Act (Article 20 of this amendatory | ||||||
17 | Act of the 101st General Assembly) shall not exceed $20,000,000 | ||||||
18 | in any State fiscal year. | ||||||
19 | (c) High Impact Businesses located in federally designated | ||||||
20 | foreign trade
zones or sub-zones are also eligible for | ||||||
21 | additional credits, exemptions and
deductions as described in | ||||||
22 | the following Acts: Section 9-221 and Section
9-222.1 of the | ||||||
23 | Public
Utilities Act; and subsection (g) of Section 201, and | ||||||
24 | Section 203
of the Illinois Income Tax Act.
| ||||||
25 | (d) Except for businesses contemplated under subdivision | ||||||
26 | (a)(3)(E) of this Section, existing Illinois businesses which |
| |||||||
| |||||||
1 | apply for designation as a
High Impact Business must provide | ||||||
2 | the Department with the prospective plan
for which 1,500 | ||||||
3 | full-time retained jobs would be eliminated in the event that | ||||||
4 | the
business is not designated.
| ||||||
5 | (e) Except for new wind power facilities contemplated under | ||||||
6 | subdivision (a)(3)(E) of this Section, new proposed facilities | ||||||
7 | which apply for designation as High Impact
Business must | ||||||
8 | provide the Department with proof of alternative non-Illinois
| ||||||
9 | sites which would receive the proposed investment and job | ||||||
10 | creation in the
event that the business is not designated as a | ||||||
11 | High Impact Business.
| ||||||
12 | (f) Except for businesses contemplated under subdivision | ||||||
13 | (a)(3)(E) of this Section, in the event that a business is | ||||||
14 | designated a High Impact Business
and it is later determined | ||||||
15 | after reasonable notice and an opportunity for a
hearing as | ||||||
16 | provided under the Illinois Administrative Procedure Act, that
| ||||||
17 | the business would have placed in service in qualified property | ||||||
18 | the
investments and created or retained the requisite number of | ||||||
19 | jobs without
the benefits of the High Impact Business | ||||||
20 | designation, the Department shall
be required to immediately | ||||||
21 | revoke the designation and notify the Director
of the | ||||||
22 | Department of Revenue who shall begin proceedings to recover | ||||||
23 | all
wrongfully exempted State taxes with interest. The business | ||||||
24 | shall also be
ineligible for all State funded Department | ||||||
25 | programs for a period of 10 years.
| ||||||
26 | (g) The Department shall revoke a High Impact Business |
| |||||||
| |||||||
1 | designation if
the participating business fails to comply with | ||||||
2 | the terms and conditions of
the designation. However, the | ||||||
3 | penalties for new wind power facilities or Wind Energy | ||||||
4 | Businesses for failure to comply with any of the terms or | ||||||
5 | conditions of the Illinois Prevailing Wage Act shall be only | ||||||
6 | those penalties identified in the Illinois Prevailing Wage Act, | ||||||
7 | and the Department shall not revoke a High Impact Business | ||||||
8 | designation as a result of the failure to comply with any of | ||||||
9 | the terms or conditions of the Illinois Prevailing Wage Act in | ||||||
10 | relation to a new wind power facility or a Wind Energy | ||||||
11 | Business.
| ||||||
12 | (h) Prior to designating a business, the Department shall | ||||||
13 | provide the
members of the General Assembly and Commission on | ||||||
14 | Government Forecasting and Accountability
with a report | ||||||
15 | setting forth the terms and conditions of the designation and
| ||||||
16 | guarantees that have been received by the Department in | ||||||
17 | relation to the
proposed business being designated.
| ||||||
18 | (i) High Impact Business construction jobs credit. | ||||||
19 | Beginning on January 1, 2021, a High Impact Business may | ||||||
20 | receive a tax credit against the tax imposed under subsections | ||||||
21 | (a) and (b) of Section 201 of the Illinois Income Tax Act in an | ||||||
22 | amount equal to 50% of the amount of the incremental income tax | ||||||
23 | attributable to High Impact Business construction jobs credit | ||||||
24 | employees employed in the course of completing a High Impact | ||||||
25 | Business construction jobs project. However, the High Impact | ||||||
26 | Business construction jobs credit may equal 75% of the amount |
| |||||||
| |||||||
1 | of the incremental income tax attributable to High Impact | ||||||
2 | Business construction jobs credit employees if the High Impact | ||||||
3 | Business construction jobs credit project is located in an | ||||||
4 | underserved area. | ||||||
5 | The Department shall certify to the Department of Revenue: | ||||||
6 | (1) the identity of taxpayers that are eligible for the High | ||||||
7 | Impact Business construction jobs credit; and (2) the amount of | ||||||
8 | High Impact Business construction jobs credits that are claimed | ||||||
9 | pursuant to subsection (h-5) of Section 201 of the Illinois | ||||||
10 | Income Tax Act in each taxable year. Any business entity that | ||||||
11 | receives a High Impact Business construction jobs credit shall | ||||||
12 | maintain a certified payroll pursuant to subsection (j) of this | ||||||
13 | Section. | ||||||
14 | As used in this subsection (i): | ||||||
15 | "High Impact Business construction jobs credit" means an | ||||||
16 | amount equal to 50% (or 75% if the High Impact Business | ||||||
17 | construction project is located in an underserved area) of the | ||||||
18 | incremental income tax attributable to High Impact Business | ||||||
19 | construction job employees. The total aggregate amount of | ||||||
20 | credits awarded under the Blue Collar Jobs Act (Article 20 of | ||||||
21 | this amendatory Act of the 101st General Assembly) shall not | ||||||
22 | exceed $20,000,000 in any State fiscal year | ||||||
23 | "High Impact Business construction job employee" means a | ||||||
24 | laborer or worker who is employed by an Illinois contractor or | ||||||
25 | subcontractor in the actual construction work on the site of a | ||||||
26 | High Impact Business construction job project. |
| |||||||
| |||||||
1 | "High Impact Business construction jobs project" means | ||||||
2 | building a structure or building or making improvements of any | ||||||
3 | kind to real property, undertaken and commissioned by a | ||||||
4 | business that was designated as a High Impact Business by the | ||||||
5 | Department. The term "High Impact Business construction jobs | ||||||
6 | project" does not include the routine operation, routine | ||||||
7 | repair, or routine maintenance of existing structures, | ||||||
8 | buildings, or real property. | ||||||
9 | "Incremental income tax" means the total amount withheld | ||||||
10 | during the taxable year from the compensation of High Impact | ||||||
11 | Business construction job employees. | ||||||
12 | "Underserved area" means a geographic area that meets one | ||||||
13 | or more of the following conditions: | ||||||
14 | (1) the area has a poverty rate of at least 20% | ||||||
15 | according to the latest federal decennial census; | ||||||
16 | (2) 75% or more of the children in the area participate | ||||||
17 | in the federal free lunch program according to reported | ||||||
18 | statistics from the State Board of Education; | ||||||
19 | (3) at least 20% of the households in the area receive | ||||||
20 | assistance under the Supplemental Nutrition Assistance | ||||||
21 | Program (SNAP); or | ||||||
22 | (4) the area has an average unemployment rate, as | ||||||
23 | determined by the Illinois Department of Employment | ||||||
24 | Security, that is more than 120% of the national | ||||||
25 | unemployment average, as determined by the U.S. Department | ||||||
26 | of Labor, for a period of at least 2 consecutive calendar |
| |||||||
| |||||||
1 | years preceding the date of the application. | ||||||
2 | (j) Each contractor and subcontractor who is engaged in and | ||||||
3 | executing a High Impact Business Construction jobs project, as | ||||||
4 | defined under subsection (i) of this Section, for a business | ||||||
5 | that is entitled to a credit pursuant to subsection (i) of this | ||||||
6 | Section shall: | ||||||
7 | (1) make and keep, for a period of 5 years from the | ||||||
8 | date of the last payment made on or after the effective | ||||||
9 | date of this amendatory Act of the 101st General Assembly | ||||||
10 | on a contract or subcontract for a High Impact Business | ||||||
11 | Construction Jobs Project, records for all laborers and | ||||||
12 | other workers employed by the contractor or subcontractor | ||||||
13 | on the project; the records shall include: | ||||||
14 | (A) the worker's name; | ||||||
15 | (B) the worker's address; | ||||||
16 | (C) the worker's telephone number, if available; | ||||||
17 | (D) the worker's social security number; | ||||||
18 | (E) the worker's classification or | ||||||
19 | classifications; | ||||||
20 | (F) the worker's gross and net wages paid in each | ||||||
21 | pay period; | ||||||
22 | (G) the worker's number of hours worked each day; | ||||||
23 | (H) the worker's starting and ending times of work | ||||||
24 | each day; | ||||||
25 | (I) the worker's hourly wage rate; and | ||||||
26 | (J) the worker's hourly overtime wage rate; |
| |||||||
| |||||||
1 | (2) no later than the 15th day of each calendar month, | ||||||
2 | provide a certified payroll for the immediately preceding | ||||||
3 | month to the taxpayer in charge of the High Impact Business | ||||||
4 | construction jobs project; within 5 business days after | ||||||
5 | receiving the certified payroll, the taxpayer shall file | ||||||
6 | the certified payroll with the Department of Labor and the | ||||||
7 | Department of Commerce and Economic Opportunity; a | ||||||
8 | certified payroll must be filed for only those calendar | ||||||
9 | months during which construction on a High Impact Business | ||||||
10 | construction jobs project has occurred; the certified | ||||||
11 | payroll shall consist of a complete copy of the records | ||||||
12 | identified in paragraph (1) of this subsection (j), but may | ||||||
13 | exclude the starting and ending times of work each day; the | ||||||
14 | certified payroll shall be accompanied by a statement | ||||||
15 | signed by the contractor or subcontractor or an officer, | ||||||
16 | employee, or agent of the contractor or subcontractor which | ||||||
17 | avers that: | ||||||
18 | (A) he or she has examined the certified payroll | ||||||
19 | records required to be submitted by the Act and such | ||||||
20 | records are true and accurate; and | ||||||
21 | (B) the contractor or subcontractor is aware that | ||||||
22 | filing a certified payroll that he or she knows to be | ||||||
23 | false is a Class A misdemeanor. | ||||||
24 | A general contractor is not prohibited from relying on a | ||||||
25 | certified payroll of a lower-tier subcontractor, provided the | ||||||
26 | general contractor does not knowingly rely upon a |
| |||||||
| |||||||
1 | subcontractor's false certification. | ||||||
2 | Any contractor or subcontractor subject to this | ||||||
3 | subsection, and any officer, employee, or agent of such | ||||||
4 | contractor or subcontractor whose duty as an officer, employee, | ||||||
5 | or agent it is to file a certified payroll under this | ||||||
6 | subsection, who willfully fails to file such a certified | ||||||
7 | payroll on or before the date such certified payroll is | ||||||
8 | required by this paragraph to be filed and any person who | ||||||
9 | willfully files a false certified payroll that is false as to | ||||||
10 | any material fact is in violation of this Act and guilty of a | ||||||
11 | Class A misdemeanor. | ||||||
12 | The taxpayer in charge of the project shall keep the | ||||||
13 | records submitted in accordance with this subsection on or | ||||||
14 | after the effective date of this amendatory Act of the 101st | ||||||
15 | General Assembly for a period of 5 years from the date of the | ||||||
16 | last payment for work on a contract or subcontract for the High | ||||||
17 | Impact Business construction jobs project. | ||||||
18 | The records submitted in accordance with this subsection | ||||||
19 | shall be considered public records, except an employee's | ||||||
20 | address, telephone number, and social security number, and made | ||||||
21 | available in accordance with the Freedom of Information Act. | ||||||
22 | The Department of Labor shall accept any reasonable submissions | ||||||
23 | by the contractor that meet the requirements of this subsection | ||||||
24 | (j) and shall share the information with the Department in | ||||||
25 | order to comply with the awarding of a High Impact Business | ||||||
26 | construction jobs credit. A contractor, subcontractor, or |
| |||||||
| |||||||
1 | public body may retain records required under this Section in | ||||||
2 | paper or electronic format. | ||||||
3 | (k) Upon 7 business days' notice, each contractor and | ||||||
4 | subcontractor shall make available for inspection and copying | ||||||
5 | at a location within this State during reasonable hours, the | ||||||
6 | records identified in this subsection (j) to the taxpayer in | ||||||
7 | charge of the High Impact Business construction jobs project, | ||||||
8 | its officers and agents, the Director of the Department of | ||||||
9 | Labor and his deputies and agents, and to federal, State, or | ||||||
10 | local law enforcement agencies and prosecutors. | ||||||
11 | (Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
| ||||||
12 | (20 ILCS 655/13 new) | ||||||
13 | Sec. 13. Enterprise Zone construction jobs credit. | ||||||
14 | (a) Beginning on January 1, 2021, a business entity in a | ||||||
15 | certified Enterprise Zone that makes a capital investment of at | ||||||
16 | least $10,000,000 in an Enterprise Zone construction jobs | ||||||
17 | project may receive an Enterprise Zone construction jobs credit | ||||||
18 | against the tax imposed under subsections (a) and (b) of | ||||||
19 | Section 201 of the Illinois Income Tax Act in an amount equal | ||||||
20 | to 50% of the amount of the incremental income tax attributable | ||||||
21 | to Enterprise Zone construction jobs credit employees employed | ||||||
22 | in the course of completing an Enterprise Zone construction | ||||||
23 | jobs project. However, the Enterprise Zone construction jobs | ||||||
24 | credit may equal 75% of the amount of the incremental income | ||||||
25 | tax attributable to Enterprise Zone construction jobs credit |
| |||||||
| |||||||
1 | employees if the project is located in an underserved area. | ||||||
2 | (b) A business entity seeking a credit under this Section | ||||||
3 | must submit an application to the Department and must receive | ||||||
4 | approval from the designating municipality or county and the | ||||||
5 | Department for the Enterprise Zone construction jobs credit | ||||||
6 | project. The application must describe the nature and benefit | ||||||
7 | of the project to the certified Enterprise Zone and its | ||||||
8 | potential contributors. The total aggregate amount of credits | ||||||
9 | awarded under the Blue Collar Jobs Act (Article 20 of this | ||||||
10 | amendatory Act of the 101st General Assembly) shall not exceed | ||||||
11 | $20,000,000 in any State fiscal year. | ||||||
12 | Within 45 days after receipt of an application, the | ||||||
13 | Department shall give notice to the applicant as to whether the | ||||||
14 | application has been approved or disapproved. If the Department | ||||||
15 | disapproves the application, it shall specify the reasons for | ||||||
16 | this decision and allow 60 days for the applicant to amend and | ||||||
17 | resubmit its application. The Department shall provide | ||||||
18 | assistance upon request to applicants. Resubmitted | ||||||
19 | applications shall receive the Department's approval or | ||||||
20 | disapproval within 30 days after the application is | ||||||
21 | resubmitted. Those resubmitted applications satisfying initial | ||||||
22 | Department objectives shall be approved unless reasonable | ||||||
23 | circumstances warrant disapproval. | ||||||
24 | On an annual basis, the designated zone organization shall | ||||||
25 | furnish a statement to the Department on the programmatic and | ||||||
26 | financial status of any approved project and an audited |
| |||||||
| |||||||
1 | financial statement of the project. | ||||||
2 | The Department shall certify to the Department of Revenue | ||||||
3 | the identity of taxpayers who are eligible for the credits and | ||||||
4 | the amount of credits that are claimed pursuant to subparagraph | ||||||
5 | (8) of subsection (f) of Section 201 the Illinois Income Tax | ||||||
6 | Act. | ||||||
7 | The Enterprise Zone construction jobs credit project must | ||||||
8 | be undertaken by the business entity in the course of | ||||||
9 | completing a project that complies with the criteria contained | ||||||
10 | in Section 4 of this Act and is undertaken in a certified | ||||||
11 | Enterprise Zone. The Department shall adopt any necessary rules | ||||||
12 | for the implementation of this subsection (b). | ||||||
13 | (c) Any business entity that receives an Enterprise Zone | ||||||
14 | construction jobs credit shall maintain a certified payroll | ||||||
15 | pursuant to subsection (d) of this Section. | ||||||
16 | (d) Each contractor and subcontractor who is engaged in and | ||||||
17 | is executing an Enterprise Zone Construction jobs credit | ||||||
18 | project for a business that is entitled to a credit pursuant to | ||||||
19 | this Section shall: | ||||||
20 | (1) make and keep, for a period of 5 years from the | ||||||
21 | date of the last payment made on or after the effective | ||||||
22 | date of this amendatory Act of the 101st General Assembly | ||||||
23 | on a contract or subcontract for an Enterprise Zone | ||||||
24 | construction jobs credit project, records for all laborers | ||||||
25 | and other workers employed by them on the project; the | ||||||
26 | records shall include: |
| |||||||
| |||||||
1 | (A) the worker's name; | ||||||
2 | (B) the worker's address; | ||||||
3 | (C) the worker's telephone number, if available; | ||||||
4 | (D) the worker's social security number; | ||||||
5 | (E) the worker's classification or | ||||||
6 | classifications; | ||||||
7 | (F) the worker's gross and net wages paid in each | ||||||
8 | pay period; | ||||||
9 | (G) the worker's number of hours worked each day; | ||||||
10 | (H) the worker's starting and ending times of work | ||||||
11 | each day; | ||||||
12 | (I) the worker's hourly wage rate; and | ||||||
13 | (J) the worker's hourly overtime wage rate; | ||||||
14 | (2) no later than the 15th day of each calendar month, | ||||||
15 | provide a certified payroll for the immediately preceding | ||||||
16 | month to the taxpayer in charge of the project; within 5 | ||||||
17 | business days after receiving the certified payroll, the | ||||||
18 | taxpayer shall file the certified payroll with the | ||||||
19 | Department of Labor and the Department of Commerce and | ||||||
20 | Economic Opportunity; a certified payroll must be filed for | ||||||
21 | only those calendar months during which construction on an | ||||||
22 | Enterprise Zone construction jobs project has occurred; | ||||||
23 | the certified payroll shall consist of a complete copy of | ||||||
24 | the records identified in paragraph (1) of this subsection | ||||||
25 | (d), but may exclude the starting and ending times of work | ||||||
26 | each day; the certified payroll shall be accompanied by a |
| |||||||
| |||||||
1 | statement signed by the contractor or subcontractor or an | ||||||
2 | officer, employee, or agent of the contractor or | ||||||
3 | subcontractor which avers that: | ||||||
4 | (A) he or she has examined the certified payroll | ||||||
5 | records required to be submitted by the Act and such | ||||||
6 | records are true and accurate; and | ||||||
7 | (B) the contractor or subcontractor is aware that | ||||||
8 | filing a certified payroll that he or she knows to be | ||||||
9 | false is a Class A misdemeanor. | ||||||
10 | A general contractor is not prohibited from relying on a | ||||||
11 | certified payroll of a lower-tier subcontractor, provided the | ||||||
12 | general contractor does not knowingly rely upon a | ||||||
13 | subcontractor's false certification. | ||||||
14 | Any contractor or subcontractor subject to this | ||||||
15 | subsection, and any officer, employee, or agent of such | ||||||
16 | contractor or subcontractor whose duty as an officer, employee, | ||||||
17 | or agent it is to file a certified payroll under this | ||||||
18 | subsection, who willfully fails to file such a certified | ||||||
19 | payroll on or before the date such certified payroll is | ||||||
20 | required by this paragraph to be filed and any person who | ||||||
21 | willfully files a false certified payroll that is false as to | ||||||
22 | any material fact is in violation of this Act and guilty of a | ||||||
23 | Class A misdemeanor. | ||||||
24 | The taxpayer in charge of the project shall keep the | ||||||
25 | records submitted in accordance with this subsection on or | ||||||
26 | after the effective date of this amendatory Act of the 101st |
| |||||||
| |||||||
1 | General Assembly for a period of 5 years from the date of the | ||||||
2 | last payment for work on a contract or subcontract for the | ||||||
3 | project. | ||||||
4 | The records submitted in accordance with this subsection | ||||||
5 | shall be considered public records, except an employee's | ||||||
6 | address, telephone number, and social security number, and made | ||||||
7 | available in accordance with the Freedom of Information Act. | ||||||
8 | The Department of Labor shall accept any reasonable submissions | ||||||
9 | by the contractor that meet the requirements of this subsection | ||||||
10 | and shall share the information with the Department in order to | ||||||
11 | comply with the awarding of Enterprise Zone construction jobs | ||||||
12 | credits. A contractor, subcontractor, or public body may retain | ||||||
13 | records required under this Section in paper or electronic | ||||||
14 | format. | ||||||
15 | Upon 7 business days' notice, the contractor and each | ||||||
16 | subcontractor shall make available for inspection and copying | ||||||
17 | at a location within this State during reasonable hours, the | ||||||
18 | records identified in paragraph (1) of this subsection to the | ||||||
19 | taxpayer in charge of the project, its officers and agents, the | ||||||
20 | Director of Labor and his deputies and agents, and to federal, | ||||||
21 | State, or local law enforcement agencies and prosecutors. | ||||||
22 | (e) As used in this Section: | ||||||
23 | "Enterprise Zone construction jobs credit" means an amount | ||||||
24 | equal to 50% (or 75% if the project is located in an | ||||||
25 | underserved area) of the incremental income tax attributable to | ||||||
26 | Enterprise Zone construction jobs credit employees. |
| |||||||
| |||||||
1 | "Enterprise Zone construction jobs credit employee" means | ||||||
2 | a laborer or worker who is employed by an Illinois contractor | ||||||
3 | or subcontractor in the actual construction work on the site of | ||||||
4 | an Enterprise Zone construction jobs credit project. | ||||||
5 | "Enterprise Zone construction jobs credit project" means | ||||||
6 | building a structure or building or making improvements of any | ||||||
7 | kind to real property commissioned and paid for by a business | ||||||
8 | that has applied and been approved for an Enterprise Zone | ||||||
9 | construction jobs credit pursuant to this Section. "Enterprise | ||||||
10 | Zone construction jobs credit project" does not include the | ||||||
11 | routine operation, routine repair, or routine maintenance of | ||||||
12 | existing structures, buildings, or real property. | ||||||
13 | "Incremental income tax" means the total amount withheld | ||||||
14 | during the taxable year from the compensation of Enterprise | ||||||
15 | Zone construction jobs credit employees. | ||||||
16 | "Underserved area" means a geographic area that meets one | ||||||
17 | or more of the following conditions: | ||||||
18 | (1) the area has a poverty rate of at least 20% | ||||||
19 | according to the latest federal decennial census; | ||||||
20 | (2) 75% or more of the children in the area participate | ||||||
21 | in the federal free lunch program according to reported | ||||||
22 | statistics from the State Board of Education; | ||||||
23 | (3) at least 20% of the households in the area receive | ||||||
24 | assistance under the Supplemental Nutrition Assistance | ||||||
25 | Program (SNAP); or | ||||||
26 | (4) the area has an average unemployment rate, as |
| |||||||
| |||||||
1 | determined by the Illinois Department of Employment | ||||||
2 | Security, that is more than 120% of the national | ||||||
3 | unemployment average, as determined by the U.S. Department | ||||||
4 | of Labor, for a period of at least 2 consecutive calendar | ||||||
5 | years preceding the date of the application.
| ||||||
6 | Section 20-10. The Illinois Income Tax Act is amended by | ||||||
7 | changing Sections 201, 211, and 221 as follows:
| ||||||
8 | (35 ILCS 5/201) (from Ch. 120, par. 2-201) | ||||||
9 | Sec. 201. Tax imposed. | ||||||
10 | (a) In general. A tax measured by net income is hereby | ||||||
11 | imposed on every
individual, corporation, trust and estate for | ||||||
12 | each taxable year ending
after July 31, 1969 on the privilege | ||||||
13 | of earning or receiving income in or
as a resident of this | ||||||
14 | State. Such tax shall be in addition to all other
occupation or | ||||||
15 | privilege taxes imposed by this State or by any municipal
| ||||||
16 | corporation or political subdivision thereof. | ||||||
17 | (b) Rates. The tax imposed by subsection (a) of this | ||||||
18 | Section shall be
determined as follows, except as adjusted by | ||||||
19 | subsection (d-1): | ||||||
20 | (1) In the case of an individual, trust or estate, for | ||||||
21 | taxable years
ending prior to July 1, 1989, an amount equal | ||||||
22 | to 2 1/2% of the taxpayer's
net income for the taxable | ||||||
23 | year. | ||||||
24 | (2) In the case of an individual, trust or estate, for |
| |||||||
| |||||||
1 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
2 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
3 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
4 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
5 | 3% of the
taxpayer's net income for the period after June | ||||||
6 | 30, 1989, as calculated
under Section 202.3. | ||||||
7 | (3) In the case of an individual, trust or estate, for | ||||||
8 | taxable years
beginning after June 30, 1989, and ending | ||||||
9 | prior to January 1, 2011, an amount equal to 3% of the | ||||||
10 | taxpayer's net
income for the taxable year. | ||||||
11 | (4) In the case of an individual, trust, or estate, for | ||||||
12 | taxable years beginning prior to January 1, 2011, and | ||||||
13 | ending after December 31, 2010, an amount equal to the sum | ||||||
14 | of (i) 3% of the taxpayer's net income for the period prior | ||||||
15 | to January 1, 2011, as calculated under Section 202.5, and | ||||||
16 | (ii) 5% of the taxpayer's net income for the period after | ||||||
17 | December 31, 2010, as calculated under Section 202.5. | ||||||
18 | (5) In the case of an individual, trust, or estate, for | ||||||
19 | taxable years beginning on or after January 1, 2011, and | ||||||
20 | ending prior to January 1, 2015, an amount equal to 5% of | ||||||
21 | the taxpayer's net income for the taxable year. | ||||||
22 | (5.1) In the case of an individual, trust, or estate, | ||||||
23 | for taxable years beginning prior to January 1, 2015, and | ||||||
24 | ending after December 31, 2014, an amount equal to the sum | ||||||
25 | of (i) 5% of the taxpayer's net income for the period prior | ||||||
26 | to January 1, 2015, as calculated under Section 202.5, and |
| |||||||
| |||||||
1 | (ii) 3.75% of the taxpayer's net income for the period | ||||||
2 | after December 31, 2014, as calculated under Section 202.5. | ||||||
3 | (5.2) In the case of an individual, trust, or estate, | ||||||
4 | for taxable years beginning on or after January 1, 2015, | ||||||
5 | and ending prior to July 1, 2017, an amount equal to 3.75% | ||||||
6 | of the taxpayer's net income for the taxable year. | ||||||
7 | (5.3) In the case of an individual, trust, or estate, | ||||||
8 | for taxable years beginning prior to July 1, 2017, and | ||||||
9 | ending after June 30, 2017, an amount equal to the sum of | ||||||
10 | (i) 3.75% of the taxpayer's net income for the period prior | ||||||
11 | to July 1, 2017, as calculated under Section 202.5, and | ||||||
12 | (ii) 4.95% of the taxpayer's net income for the period | ||||||
13 | after June 30, 2017, as calculated under Section 202.5. | ||||||
14 | (5.4) In the case of an individual, trust, or estate, | ||||||
15 | for taxable years beginning on or after July 1, 2017, an | ||||||
16 | amount equal to 4.95% of the taxpayer's net income for the | ||||||
17 | taxable year. | ||||||
18 | (6) In the case of a corporation, for taxable years
| ||||||
19 | ending prior to July 1, 1989, an amount equal to 4% of the
| ||||||
20 | taxpayer's net income for the taxable year. | ||||||
21 | (7) In the case of a corporation, for taxable years | ||||||
22 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
23 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
24 | taxpayer's net income for the period prior to July 1, 1989,
| ||||||
25 | as calculated under Section 202.3, and (ii) 4.8% of the | ||||||
26 | taxpayer's net
income for the period after June 30, 1989, |
| |||||||
| |||||||
1 | as calculated under Section
202.3. | ||||||
2 | (8) In the case of a corporation, for taxable years | ||||||
3 | beginning after
June 30, 1989, and ending prior to January | ||||||
4 | 1, 2011, an amount equal to 4.8% of the taxpayer's net | ||||||
5 | income for the
taxable year. | ||||||
6 | (9) In the case of a corporation, for taxable years | ||||||
7 | beginning prior to January 1, 2011, and ending after | ||||||
8 | December 31, 2010, an amount equal to the sum of (i) 4.8% | ||||||
9 | of the taxpayer's net income for the period prior to | ||||||
10 | January 1, 2011, as calculated under Section 202.5, and | ||||||
11 | (ii) 7% of the taxpayer's net income for the period after | ||||||
12 | December 31, 2010, as calculated under Section 202.5. | ||||||
13 | (10) In the case of a corporation, for taxable years | ||||||
14 | beginning on or after January 1, 2011, and ending prior to | ||||||
15 | January 1, 2015, an amount equal to 7% of the taxpayer's | ||||||
16 | net income for the taxable year. | ||||||
17 | (11) In the case of a corporation, for taxable years | ||||||
18 | beginning prior to January 1, 2015, and ending after | ||||||
19 | December 31, 2014, an amount equal to the sum of (i) 7% of | ||||||
20 | the taxpayer's net income for the period prior to January | ||||||
21 | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% | ||||||
22 | of the taxpayer's net income for the period after December | ||||||
23 | 31, 2014, as calculated under Section 202.5. | ||||||
24 | (12) In the case of a corporation, for taxable years | ||||||
25 | beginning on or after January 1, 2015, and ending prior to | ||||||
26 | July 1, 2017, an amount equal to 5.25% of the taxpayer's |
| |||||||
| |||||||
1 | net income for the taxable year. | ||||||
2 | (13) In the case of a corporation, for taxable years | ||||||
3 | beginning prior to July 1, 2017, and ending after June 30, | ||||||
4 | 2017, an amount equal to the sum of (i) 5.25% of the | ||||||
5 | taxpayer's net income for the period prior to July 1, 2017, | ||||||
6 | as calculated under Section 202.5, and (ii) 7% of the | ||||||
7 | taxpayer's net income for the period after June 30, 2017, | ||||||
8 | as calculated under Section 202.5. | ||||||
9 | (14) In the case of a corporation, for taxable years | ||||||
10 | beginning on or after July 1, 2017, an amount equal to 7% | ||||||
11 | of the taxpayer's net income for the taxable year. | ||||||
12 | The rates under this subsection (b) are subject to the | ||||||
13 | provisions of Section 201.5. | ||||||
14 | (c) Personal Property Tax Replacement Income Tax.
| ||||||
15 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
16 | income
tax, there is also hereby imposed the Personal Property | ||||||
17 | Tax Replacement
Income Tax measured by net income on every | ||||||
18 | corporation (including Subchapter
S corporations), partnership | ||||||
19 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
20 | Such taxes are imposed on the privilege of earning or
receiving | ||||||
21 | income in or as a resident of this State. The Personal Property
| ||||||
22 | Tax Replacement Income Tax shall be in addition to the income | ||||||
23 | tax imposed
by subsections (a) and (b) of this Section and in | ||||||
24 | addition to all other
occupation or privilege taxes imposed by | ||||||
25 | this State or by any municipal
corporation or political | ||||||
26 | subdivision thereof. |
| |||||||
| |||||||
1 | (d) Additional Personal Property Tax Replacement Income | ||||||
2 | Tax Rates.
The personal property tax replacement income tax | ||||||
3 | imposed by this subsection
and subsection (c) of this Section | ||||||
4 | in the case of a corporation, other
than a Subchapter S | ||||||
5 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
6 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
7 | income for the taxable year, except that
beginning on January | ||||||
8 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
9 | subsection shall be reduced to 2.5%, and in the case of a
| ||||||
10 | partnership, trust or a Subchapter S corporation shall be an | ||||||
11 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
12 | for the taxable year. | ||||||
13 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
14 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
15 | Illinois Insurance Code,
whose state or country of domicile | ||||||
16 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
17 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
18 | are 50% or more of its total insurance
premiums as determined | ||||||
19 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
20 | that for purposes of this determination premiums from | ||||||
21 | reinsurance do
not include premiums from inter-affiliate | ||||||
22 | reinsurance arrangements),
beginning with taxable years ending | ||||||
23 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
24 | imposed by subsections (b) and (d) shall be reduced (but not
| ||||||
25 | increased) to the rate at which the total amount of tax imposed | ||||||
26 | under this Act,
net of all credits allowed under this Act, |
| |||||||
| |||||||
1 | shall equal (i) the total amount of
tax that would be imposed | ||||||
2 | on the foreign insurer's net income allocable to
Illinois for | ||||||
3 | the taxable year by such foreign insurer's state or country of
| ||||||
4 | domicile if that net income were subject to all income taxes | ||||||
5 | and taxes
measured by net income imposed by such foreign | ||||||
6 | insurer's state or country of
domicile, net of all credits | ||||||
7 | allowed or (ii) a rate of zero if no such tax is
imposed on such | ||||||
8 | income by the foreign insurer's state of domicile.
For the | ||||||
9 | purposes of this subsection (d-1), an inter-affiliate includes | ||||||
10 | a
mutual insurer under common management. | ||||||
11 | (1) For the purposes of subsection (d-1), in no event | ||||||
12 | shall the sum of the
rates of tax imposed by subsections | ||||||
13 | (b) and (d) be reduced below the rate at
which the sum of: | ||||||
14 | (A) the total amount of tax imposed on such foreign | ||||||
15 | insurer under
this Act for a taxable year, net of all | ||||||
16 | credits allowed under this Act, plus | ||||||
17 | (B) the privilege tax imposed by Section 409 of the | ||||||
18 | Illinois Insurance
Code, the fire insurance company | ||||||
19 | tax imposed by Section 12 of the Fire
Investigation | ||||||
20 | Act, and the fire department taxes imposed under | ||||||
21 | Section 11-10-1
of the Illinois Municipal Code, | ||||||
22 | equals 1.25% for taxable years ending prior to December 31, | ||||||
23 | 2003, or
1.75% for taxable years ending on or after | ||||||
24 | December 31, 2003, of the net
taxable premiums written for | ||||||
25 | the taxable year,
as described by subsection (1) of Section | ||||||
26 | 409 of the Illinois Insurance Code.
This paragraph will in |
| |||||||
| |||||||
1 | no event increase the rates imposed under subsections
(b) | ||||||
2 | and (d). | ||||||
3 | (2) Any reduction in the rates of tax imposed by this | ||||||
4 | subsection shall be
applied first against the rates imposed | ||||||
5 | by subsection (b) and only after the
tax imposed by | ||||||
6 | subsection (a) net of all credits allowed under this | ||||||
7 | Section
other than the credit allowed under subsection (i) | ||||||
8 | has been reduced to zero,
against the rates imposed by | ||||||
9 | subsection (d). | ||||||
10 | This subsection (d-1) is exempt from the provisions of | ||||||
11 | Section 250. | ||||||
12 | (e) Investment credit. A taxpayer shall be allowed a credit
| ||||||
13 | against the Personal Property Tax Replacement Income Tax for
| ||||||
14 | investment in qualified property. | ||||||
15 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
16 | of
the basis of qualified property placed in service during | ||||||
17 | the taxable year,
provided such property is placed in | ||||||
18 | service on or after
July 1, 1984. There shall be allowed an | ||||||
19 | additional credit equal
to .5% of the basis of qualified | ||||||
20 | property placed in service during the
taxable year, | ||||||
21 | provided such property is placed in service on or
after | ||||||
22 | July 1, 1986, and the taxpayer's base employment
within | ||||||
23 | Illinois has increased by 1% or more over the preceding | ||||||
24 | year as
determined by the taxpayer's employment records | ||||||
25 | filed with the
Illinois Department of Employment Security. | ||||||
26 | Taxpayers who are new to
Illinois shall be deemed to have |
| |||||||
| |||||||
1 | met the 1% growth in base employment for
the first year in | ||||||
2 | which they file employment records with the Illinois
| ||||||
3 | Department of Employment Security. The provisions added to | ||||||
4 | this Section by
Public Act 85-1200 (and restored by Public | ||||||
5 | Act 87-895) shall be
construed as declaratory of existing | ||||||
6 | law and not as a new enactment. If,
in any year, the | ||||||
7 | increase in base employment within Illinois over the
| ||||||
8 | preceding year is less than 1%, the additional credit shall | ||||||
9 | be limited to that
percentage times a fraction, the | ||||||
10 | numerator of which is .5% and the denominator
of which is | ||||||
11 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
12 | not be
allowed to the extent that it would reduce a | ||||||
13 | taxpayer's liability in any tax
year below zero, nor may | ||||||
14 | any credit for qualified property be allowed for any
year | ||||||
15 | other than the year in which the property was placed in | ||||||
16 | service in
Illinois. For tax years ending on or after | ||||||
17 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
18 | credit shall be allowed for the tax year in
which the | ||||||
19 | property is placed in service, or, if the amount of the | ||||||
20 | credit
exceeds the tax liability for that year, whether it | ||||||
21 | exceeds the original
liability or the liability as later | ||||||
22 | amended, such excess may be carried
forward and applied to | ||||||
23 | the tax liability of the 5 taxable years following
the | ||||||
24 | excess credit years if the taxpayer (i) makes investments | ||||||
25 | which cause
the creation of a minimum of 2,000 full-time | ||||||
26 | equivalent jobs in Illinois,
(ii) is located in an |
| |||||||
| |||||||
1 | enterprise zone established pursuant to the Illinois
| ||||||
2 | Enterprise Zone Act and (iii) is certified by the | ||||||
3 | Department of Commerce
and Community Affairs (now | ||||||
4 | Department of Commerce and Economic Opportunity) as | ||||||
5 | complying with the requirements specified in
clause (i) and | ||||||
6 | (ii) by July 1, 1986. The Department of Commerce and
| ||||||
7 | Community Affairs (now Department of Commerce and Economic | ||||||
8 | Opportunity) shall notify the Department of Revenue of all | ||||||
9 | such
certifications immediately. For tax years ending | ||||||
10 | after December 31, 1988,
the credit shall be allowed for | ||||||
11 | the tax year in which the property is
placed in service, | ||||||
12 | or, if the amount of the credit exceeds the tax
liability | ||||||
13 | for that year, whether it exceeds the original liability or | ||||||
14 | the
liability as later amended, such excess may be carried | ||||||
15 | forward and applied
to the tax liability of the 5 taxable | ||||||
16 | years following the excess credit
years. The credit shall | ||||||
17 | be applied to the earliest year for which there is
a | ||||||
18 | liability. If there is credit from more than one tax year | ||||||
19 | that is
available to offset a liability, earlier credit | ||||||
20 | shall be applied first. | ||||||
21 | (2) The term "qualified property" means property | ||||||
22 | which: | ||||||
23 | (A) is tangible, whether new or used, including | ||||||
24 | buildings and structural
components of buildings and | ||||||
25 | signs that are real property, but not including
land or | ||||||
26 | improvements to real property that are not a structural |
| |||||||
| |||||||
1 | component of a
building such as landscaping, sewer | ||||||
2 | lines, local access roads, fencing, parking
lots, and | ||||||
3 | other appurtenances; | ||||||
4 | (B) is depreciable pursuant to Section 167 of the | ||||||
5 | Internal Revenue Code,
except that "3-year property" | ||||||
6 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
7 | eligible for the credit provided by this subsection | ||||||
8 | (e); | ||||||
9 | (C) is acquired by purchase as defined in Section | ||||||
10 | 179(d) of
the Internal Revenue Code; | ||||||
11 | (D) is used in Illinois by a taxpayer who is | ||||||
12 | primarily engaged in
manufacturing, or in mining coal | ||||||
13 | or fluorite, or in retailing, or was placed in service | ||||||
14 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
15 | Zone established pursuant to the River Edge | ||||||
16 | Redevelopment Zone Act; and | ||||||
17 | (E) has not previously been used in Illinois in | ||||||
18 | such a manner and by
such a person as would qualify for | ||||||
19 | the credit provided by this subsection
(e) or | ||||||
20 | subsection (f). | ||||||
21 | (3) For purposes of this subsection (e), | ||||||
22 | "manufacturing" means
the material staging and production | ||||||
23 | of tangible personal property by
procedures commonly | ||||||
24 | regarded as manufacturing, processing, fabrication, or
| ||||||
25 | assembling which changes some existing material into new | ||||||
26 | shapes, new
qualities, or new combinations. For purposes of |
| |||||||
| |||||||
1 | this subsection
(e) the term "mining" shall have the same | ||||||
2 | meaning as the term "mining" in
Section 613(c) of the | ||||||
3 | Internal Revenue Code. For purposes of this subsection
(e), | ||||||
4 | the term "retailing" means the sale of tangible personal | ||||||
5 | property for use or consumption and not for resale, or
| ||||||
6 | services rendered in conjunction with the sale of tangible | ||||||
7 | personal property for use or consumption and not for | ||||||
8 | resale. For purposes of this subsection (e), "tangible | ||||||
9 | personal property" has the same meaning as when that term | ||||||
10 | is used in the Retailers' Occupation Tax Act, and, for | ||||||
11 | taxable years ending after December 31, 2008, does not | ||||||
12 | include the generation, transmission, or distribution of | ||||||
13 | electricity. | ||||||
14 | (4) The basis of qualified property shall be the basis
| ||||||
15 | used to compute the depreciation deduction for federal | ||||||
16 | income tax purposes. | ||||||
17 | (5) If the basis of the property for federal income tax | ||||||
18 | depreciation
purposes is increased after it has been placed | ||||||
19 | in service in Illinois by
the taxpayer, the amount of such | ||||||
20 | increase shall be deemed property placed
in service on the | ||||||
21 | date of such increase in basis. | ||||||
22 | (6) The term "placed in service" shall have the same
| ||||||
23 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
24 | (7) If during any taxable year, any property ceases to
| ||||||
25 | be qualified property in the hands of the taxpayer within | ||||||
26 | 48 months after
being placed in service, or the situs of |
| |||||||
| |||||||
1 | any qualified property is
moved outside Illinois within 48 | ||||||
2 | months after being placed in service, the
Personal Property | ||||||
3 | Tax Replacement Income Tax for such taxable year shall be
| ||||||
4 | increased. Such increase shall be determined by (i) | ||||||
5 | recomputing the
investment credit which would have been | ||||||
6 | allowed for the year in which
credit for such property was | ||||||
7 | originally allowed by eliminating such
property from such | ||||||
8 | computation and, (ii) subtracting such recomputed credit
| ||||||
9 | from the amount of credit previously allowed. For the | ||||||
10 | purposes of this
paragraph (7), a reduction of the basis of | ||||||
11 | qualified property resulting
from a redetermination of the | ||||||
12 | purchase price shall be deemed a disposition
of qualified | ||||||
13 | property to the extent of such reduction. | ||||||
14 | (8) Unless the investment credit is extended by law, | ||||||
15 | the
basis of qualified property shall not include costs | ||||||
16 | incurred after
December 31, 2018, except for costs incurred | ||||||
17 | pursuant to a binding
contract entered into on or before | ||||||
18 | December 31, 2018. | ||||||
19 | (9) Each taxable year ending before December 31, 2000, | ||||||
20 | a partnership may
elect to pass through to its
partners the | ||||||
21 | credits to which the partnership is entitled under this | ||||||
22 | subsection
(e) for the taxable year. A partner may use the | ||||||
23 | credit allocated to him or her
under this paragraph only | ||||||
24 | against the tax imposed in subsections (c) and (d) of
this | ||||||
25 | Section. If the partnership makes that election, those | ||||||
26 | credits shall be
allocated among the partners in the |
| |||||||
| |||||||
1 | partnership in accordance with the rules
set forth in | ||||||
2 | Section 704(b) of the Internal Revenue Code, and the rules
| ||||||
3 | promulgated under that Section, and the allocated amount of | ||||||
4 | the credits shall
be allowed to the partners for that | ||||||
5 | taxable year. The partnership shall make
this election on | ||||||
6 | its Personal Property Tax Replacement Income Tax return for
| ||||||
7 | that taxable year. The election to pass through the credits | ||||||
8 | shall be
irrevocable. | ||||||
9 | For taxable years ending on or after December 31, 2000, | ||||||
10 | a
partner that qualifies its
partnership for a subtraction | ||||||
11 | under subparagraph (I) of paragraph (2) of
subsection (d) | ||||||
12 | of Section 203 or a shareholder that qualifies a Subchapter | ||||||
13 | S
corporation for a subtraction under subparagraph (S) of | ||||||
14 | paragraph (2) of
subsection (b) of Section 203 shall be | ||||||
15 | allowed a credit under this subsection
(e) equal to its | ||||||
16 | share of the credit earned under this subsection (e) during
| ||||||
17 | the taxable year by the partnership or Subchapter S | ||||||
18 | corporation, determined in
accordance with the | ||||||
19 | determination of income and distributive share of
income | ||||||
20 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
21 | Revenue
Code. This paragraph is exempt from the provisions | ||||||
22 | of Section 250. | ||||||
23 | (f) Investment credit; Enterprise Zone; River Edge | ||||||
24 | Redevelopment Zone. | ||||||
25 | (1) A taxpayer shall be allowed a credit against the | ||||||
26 | tax imposed
by subsections (a) and (b) of this Section for |
| |||||||
| |||||||
1 | investment in qualified
property which is placed in service | ||||||
2 | in an Enterprise Zone created
pursuant to the Illinois | ||||||
3 | Enterprise Zone Act or, for property placed in service on | ||||||
4 | or after July 1, 2006, a River Edge Redevelopment Zone | ||||||
5 | established pursuant to the River Edge Redevelopment Zone | ||||||
6 | Act. For partners, shareholders
of Subchapter S | ||||||
7 | corporations, and owners of limited liability companies,
| ||||||
8 | if the liability company is treated as a partnership for | ||||||
9 | purposes of
federal and State income taxation, there shall | ||||||
10 | be allowed a credit under
this subsection (f) to be | ||||||
11 | determined in accordance with the determination
of income | ||||||
12 | and distributive share of income under Sections 702 and 704 | ||||||
13 | and
Subchapter S of the Internal Revenue Code. The credit | ||||||
14 | shall be .5% of the
basis for such property. The credit | ||||||
15 | shall be available only in the taxable
year in which the | ||||||
16 | property is placed in service in the Enterprise Zone or | ||||||
17 | River Edge Redevelopment Zone and
shall not be allowed to | ||||||
18 | the extent that it would reduce a taxpayer's
liability for | ||||||
19 | the tax imposed by subsections (a) and (b) of this Section | ||||||
20 | to
below zero. For tax years ending on or after December | ||||||
21 | 31, 1985, the credit
shall be allowed for the tax year in | ||||||
22 | which the property is placed in
service, or, if the amount | ||||||
23 | of the credit exceeds the tax liability for that
year, | ||||||
24 | whether it exceeds the original liability or the liability | ||||||
25 | as later
amended, such excess may be carried forward and | ||||||
26 | applied to the tax
liability of the 5 taxable years |
| |||||||
| |||||||
1 | following the excess credit year.
The credit shall be | ||||||
2 | applied to the earliest year for which there is a
| ||||||
3 | liability. If there is credit from more than one tax year | ||||||
4 | that is available
to offset a liability, the credit | ||||||
5 | accruing first in time shall be applied
first. | ||||||
6 | (2) The term qualified property means property which: | ||||||
7 | (A) is tangible, whether new or used, including | ||||||
8 | buildings and
structural components of buildings; | ||||||
9 | (B) is depreciable pursuant to Section 167 of the | ||||||
10 | Internal Revenue
Code, except that "3-year property" | ||||||
11 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
12 | eligible for the credit provided by this subsection | ||||||
13 | (f); | ||||||
14 | (C) is acquired by purchase as defined in Section | ||||||
15 | 179(d) of
the Internal Revenue Code; | ||||||
16 | (D) is used in the Enterprise Zone or River Edge | ||||||
17 | Redevelopment Zone by the taxpayer; and | ||||||
18 | (E) has not been previously used in Illinois in | ||||||
19 | such a manner and by
such a person as would qualify for | ||||||
20 | the credit provided by this subsection
(f) or | ||||||
21 | subsection (e). | ||||||
22 | (3) The basis of qualified property shall be the basis | ||||||
23 | used to compute
the depreciation deduction for federal | ||||||
24 | income tax purposes. | ||||||
25 | (4) If the basis of the property for federal income tax | ||||||
26 | depreciation
purposes is increased after it has been placed |
| |||||||
| |||||||
1 | in service in the Enterprise
Zone or River Edge | ||||||
2 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
3 | increase shall be deemed property
placed in service on the | ||||||
4 | date of such increase in basis. | ||||||
5 | (5) The term "placed in service" shall have the same | ||||||
6 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
7 | (6) If during any taxable year, any property ceases to | ||||||
8 | be qualified
property in the hands of the taxpayer within | ||||||
9 | 48 months after being placed
in service, or the situs of | ||||||
10 | any qualified property is moved outside the
Enterprise Zone | ||||||
11 | or River Edge Redevelopment Zone within 48 months after | ||||||
12 | being placed in service, the tax
imposed under subsections | ||||||
13 | (a) and (b) of this Section for such taxable year
shall be | ||||||
14 | increased. Such increase shall be determined by (i) | ||||||
15 | recomputing
the investment credit which would have been | ||||||
16 | allowed for the year in which
credit for such property was | ||||||
17 | originally allowed by eliminating such
property from such | ||||||
18 | computation, and (ii) subtracting such recomputed credit
| ||||||
19 | from the amount of credit previously allowed. For the | ||||||
20 | purposes of this
paragraph (6), a reduction of the basis of | ||||||
21 | qualified property resulting
from a redetermination of the | ||||||
22 | purchase price shall be deemed a disposition
of qualified | ||||||
23 | property to the extent of such reduction. | ||||||
24 | (7) There shall be allowed an additional credit equal | ||||||
25 | to 0.5% of the basis of qualified property placed in | ||||||
26 | service during the taxable year in a River Edge |
| |||||||
| |||||||
1 | Redevelopment Zone, provided such property is placed in | ||||||
2 | service on or after July 1, 2006, and the taxpayer's base | ||||||
3 | employment within Illinois has increased by 1% or more over | ||||||
4 | the preceding year as determined by the taxpayer's | ||||||
5 | employment records filed with the Illinois Department of | ||||||
6 | Employment Security. Taxpayers who are new to Illinois | ||||||
7 | shall be deemed to have met the 1% growth in base | ||||||
8 | employment for the first year in which they file employment | ||||||
9 | records with the Illinois Department of Employment | ||||||
10 | Security. If, in any year, the increase in base employment | ||||||
11 | within Illinois over the preceding year is less than 1%, | ||||||
12 | the additional credit shall be limited to that percentage | ||||||
13 | times a fraction, the numerator of which is 0.5% and the | ||||||
14 | denominator of which is 1%, but shall not exceed 0.5%.
| ||||||
15 | (8) For taxable years beginning on or after January 1, | ||||||
16 | 2021, there shall be allowed an Enterprise Zone | ||||||
17 | construction jobs credit against the taxes imposed under | ||||||
18 | subsections (a) and (b) of this Section as provided in | ||||||
19 | Section 13 of the Illinois Enterprise Zone Act. | ||||||
20 | The credit or credits may not reduce the taxpayer's | ||||||
21 | liability to less than zero. If the amount of the credit or | ||||||
22 | credits exceeds the taxpayer's liability, the excess may be | ||||||
23 | carried forward and applied against the taxpayer's | ||||||
24 | liability in succeeding calendar years in the same manner | ||||||
25 | provided under paragraph (4) of Section 211 of this Act. | ||||||
26 | The credit or credits shall be applied to the earliest year |
| |||||||
| |||||||
1 | for which there is a tax liability. If there are credits | ||||||
2 | from more than one taxable year that are available to | ||||||
3 | offset a liability, the earlier credit shall be applied | ||||||
4 | first. | ||||||
5 | For partners, shareholders of Subchapter S | ||||||
6 | corporations, and owners of limited liability companies, | ||||||
7 | if the liability company is treated as a partnership for | ||||||
8 | the purposes of federal and State income taxation, there | ||||||
9 | shall be allowed a credit under this Section to be | ||||||
10 | determined in accordance with the determination of income | ||||||
11 | and distributive share of income under Sections 702 and 704 | ||||||
12 | and Subchapter S of the Internal Revenue Code. | ||||||
13 | The total aggregate amount of credits awarded under the | ||||||
14 | Blue Collar Jobs Act (Article 20 of this amendatory Act of | ||||||
15 | the 101st General Assembly) shall not exceed $20,000,000 in | ||||||
16 | any State fiscal year | ||||||
17 | This paragraph (8) is exempt from the provisions of | ||||||
18 | Section 250. | ||||||
19 | (g) (Blank). | ||||||
20 | (h) Investment credit; High Impact Business. | ||||||
21 | (1) Subject to subsections (b) and (b-5) of Section
5.5 | ||||||
22 | of the Illinois Enterprise Zone Act, a taxpayer shall be | ||||||
23 | allowed a credit
against the tax imposed by subsections (a) | ||||||
24 | and (b) of this Section for
investment in qualified
| ||||||
25 | property which is placed in service by a Department of | ||||||
26 | Commerce and Economic Opportunity
designated High Impact |
| |||||||
| |||||||
1 | Business. The credit shall be .5% of the basis
for such | ||||||
2 | property. The credit shall not be available (i) until the | ||||||
3 | minimum
investments in qualified property set forth in | ||||||
4 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
5 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
6 | time authorized in subsection (b-5) of the Illinois
| ||||||
7 | Enterprise Zone Act for entities designated as High Impact | ||||||
8 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
9 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
10 | Act, and shall not be allowed to the extent that it would
| ||||||
11 | reduce a taxpayer's liability for the tax imposed by | ||||||
12 | subsections (a) and (b) of
this Section to below zero. The | ||||||
13 | credit applicable to such investments shall be
taken in the | ||||||
14 | taxable year in which such investments have been completed. | ||||||
15 | The
credit for additional investments beyond the minimum | ||||||
16 | investment by a designated
high impact business authorized | ||||||
17 | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois | ||||||
18 | Enterprise Zone Act shall be available only in the taxable | ||||||
19 | year in
which the property is placed in service and shall | ||||||
20 | not be allowed to the extent
that it would reduce a | ||||||
21 | taxpayer's liability for the tax imposed by subsections
(a) | ||||||
22 | and (b) of this Section to below zero.
For tax years ending | ||||||
23 | on or after December 31, 1987, the credit shall be
allowed | ||||||
24 | for the tax year in which the property is placed in | ||||||
25 | service, or, if
the amount of the credit exceeds the tax | ||||||
26 | liability for that year, whether
it exceeds the original |
| |||||||
| |||||||
1 | liability or the liability as later amended, such
excess | ||||||
2 | may be carried forward and applied to the tax liability of | ||||||
3 | the 5
taxable years following the excess credit year. The | ||||||
4 | credit shall be
applied to the earliest year for which | ||||||
5 | there is a liability. If there is
credit from more than one | ||||||
6 | tax year that is available to offset a liability,
the | ||||||
7 | credit accruing first in time shall be applied first. | ||||||
8 | Changes made in this subdivision (h)(1) by Public Act | ||||||
9 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
10 | reflect existing law. | ||||||
11 | (2) The term qualified property means property which: | ||||||
12 | (A) is tangible, whether new or used, including | ||||||
13 | buildings and
structural components of buildings; | ||||||
14 | (B) is depreciable pursuant to Section 167 of the | ||||||
15 | Internal Revenue
Code, except that "3-year property" | ||||||
16 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
17 | eligible for the credit provided by this subsection | ||||||
18 | (h); | ||||||
19 | (C) is acquired by purchase as defined in Section | ||||||
20 | 179(d) of the
Internal Revenue Code; and | ||||||
21 | (D) is not eligible for the Enterprise Zone | ||||||
22 | Investment Credit provided
by subsection (f) of this | ||||||
23 | Section. | ||||||
24 | (3) The basis of qualified property shall be the basis | ||||||
25 | used to compute
the depreciation deduction for federal | ||||||
26 | income tax purposes. |
| |||||||
| |||||||
1 | (4) If the basis of the property for federal income tax | ||||||
2 | depreciation
purposes is increased after it has been placed | ||||||
3 | in service in a federally
designated Foreign Trade Zone or | ||||||
4 | Sub-Zone located in Illinois by the taxpayer,
the amount of | ||||||
5 | such increase shall be deemed property placed in service on
| ||||||
6 | the date of such increase in basis. | ||||||
7 | (5) The term "placed in service" shall have the same | ||||||
8 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
9 | (6) If during any taxable year ending on or before | ||||||
10 | December 31, 1996,
any property ceases to be qualified
| ||||||
11 | property in the hands of the taxpayer within 48 months | ||||||
12 | after being placed
in service, or the situs of any | ||||||
13 | qualified property is moved outside
Illinois within 48 | ||||||
14 | months after being placed in service, the tax imposed
under | ||||||
15 | subsections (a) and (b) of this Section for such taxable | ||||||
16 | year shall
be increased. Such increase shall be determined | ||||||
17 | by (i) recomputing the
investment credit which would have | ||||||
18 | been allowed for the year in which
credit for such property | ||||||
19 | was originally allowed by eliminating such
property from | ||||||
20 | such computation, and (ii) subtracting such recomputed | ||||||
21 | credit
from the amount of credit previously allowed. For | ||||||
22 | the purposes of this
paragraph (6), a reduction of the | ||||||
23 | basis of qualified property resulting
from a | ||||||
24 | redetermination of the purchase price shall be deemed a | ||||||
25 | disposition
of qualified property to the extent of such | ||||||
26 | reduction. |
| |||||||
| |||||||
1 | (7) Beginning with tax years ending after December 31, | ||||||
2 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
3 | subsection (h) and thereby is
granted a tax abatement and | ||||||
4 | the taxpayer relocates its entire facility in
violation of | ||||||
5 | the explicit terms and length of the contract under Section
| ||||||
6 | 18-183 of the Property Tax Code, the tax imposed under | ||||||
7 | subsections
(a) and (b) of this Section shall be increased | ||||||
8 | for the taxable year
in which the taxpayer relocated its | ||||||
9 | facility by an amount equal to the
amount of credit | ||||||
10 | received by the taxpayer under this subsection (h). | ||||||
11 | (h-5) High Impact Business constructions jobs credit. For | ||||||
12 | taxable years beginning on or after January 1, 2021, there | ||||||
13 | shall also be allowed a High Impact Business construction jobs | ||||||
14 | credit against the tax imposed under subsections (a) and (b) of | ||||||
15 | this Section as provided in subsections (i) and (j) of Section | ||||||
16 | 5.5 of the Illinois Enterprise Zone Act. | ||||||
17 | The credit or credits may not reduce the taxpayer's | ||||||
18 | liability to less than zero. If the amount of the credit or | ||||||
19 | credits exceeds the taxpayer's liability, the excess may be | ||||||
20 | carried forward and applied against the taxpayer's liability in | ||||||
21 | succeeding calendar years in the manner provided under | ||||||
22 | paragraph (4) of Section 211 of this Act. The credit or credits | ||||||
23 | shall be applied to the earliest year for which there is a tax | ||||||
24 | liability. If there are credits from more than one taxable year | ||||||
25 | that are available to offset a liability, the earlier credit | ||||||
26 | shall be applied first. |
| |||||||
| |||||||
1 | For partners, shareholders of Subchapter S corporations, | ||||||
2 | and owners of limited liability companies, if the liability | ||||||
3 | company is treated as a partnership for the purposes of federal | ||||||
4 | and State income taxation, there shall be allowed a credit | ||||||
5 | under this Section to be determined in accordance with the | ||||||
6 | determination of income and distributive share of income under | ||||||
7 | Sections 702 and 704 and Subchapter S of the Internal Revenue | ||||||
8 | Code. | ||||||
9 | The total aggregate amount of credits awarded under the | ||||||
10 | Blue Collar Jobs Act (Article 20 of this amendatory Act of the | ||||||
11 | 101st General Assembly) shall not exceed $20,000,000 in any | ||||||
12 | State fiscal year | ||||||
13 | This subsection (h-5) is exempt from the provisions of | ||||||
14 | Section 250. | ||||||
15 | (i) Credit for Personal Property Tax Replacement Income | ||||||
16 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
17 | shall be allowed
against the tax imposed by
subsections (a) and | ||||||
18 | (b) of this Section for the tax imposed by subsections (c)
and | ||||||
19 | (d) of this Section. This credit shall be computed by | ||||||
20 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
21 | Section by a fraction, the numerator
of which is base income | ||||||
22 | allocable to Illinois and the denominator of which is
Illinois | ||||||
23 | base income, and further multiplying the product by the tax | ||||||
24 | rate
imposed by subsections (a) and (b) of this Section. | ||||||
25 | Any credit earned on or after December 31, 1986 under
this | ||||||
26 | subsection which is unused in the year
the credit is computed |
| |||||||
| |||||||
1 | because it exceeds the tax liability imposed by
subsections (a) | ||||||
2 | and (b) for that year (whether it exceeds the original
| ||||||
3 | liability or the liability as later amended) may be carried | ||||||
4 | forward and
applied to the tax liability imposed by subsections | ||||||
5 | (a) and (b) of the 5
taxable years following the excess credit | ||||||
6 | year, provided that no credit may
be carried forward to any | ||||||
7 | year ending on or
after December 31, 2003. This credit shall be
| ||||||
8 | applied first to the earliest year for which there is a | ||||||
9 | liability. If
there is a credit under this subsection from more | ||||||
10 | than one tax year that is
available to offset a liability the | ||||||
11 | earliest credit arising under this
subsection shall be applied | ||||||
12 | first. | ||||||
13 | If, during any taxable year ending on or after December 31, | ||||||
14 | 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
15 | Section for which a taxpayer
has claimed a credit under this | ||||||
16 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
17 | shall also be reduced. Such reduction shall be
determined by | ||||||
18 | recomputing the credit to take into account the reduced tax
| ||||||
19 | imposed by subsections (c) and (d). If any portion of the
| ||||||
20 | reduced amount of credit has been carried to a different | ||||||
21 | taxable year, an
amended return shall be filed for such taxable | ||||||
22 | year to reduce the amount of
credit claimed. | ||||||
23 | (j) Training expense credit. Beginning with tax years | ||||||
24 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
25 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
26 | imposed by subsections (a) and (b) under this Section
for all |
| |||||||
| |||||||
1 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
2 | the taxpayer in Illinois or Illinois residents employed
outside | ||||||
3 | of Illinois by a taxpayer, for educational or vocational | ||||||
4 | training in
semi-technical or technical fields or semi-skilled | ||||||
5 | or skilled fields, which
were deducted from gross income in the | ||||||
6 | computation of taxable income. The
credit against the tax | ||||||
7 | imposed by subsections (a) and (b) shall be 1.6% of
such | ||||||
8 | training expenses. For partners, shareholders of subchapter S
| ||||||
9 | corporations, and owners of limited liability companies, if the | ||||||
10 | liability
company is treated as a partnership for purposes of | ||||||
11 | federal and State income
taxation, there shall be allowed a | ||||||
12 | credit under this subsection (j) to be
determined in accordance | ||||||
13 | with the determination of income and distributive
share of | ||||||
14 | income under Sections 702 and 704 and subchapter S of the | ||||||
15 | Internal
Revenue Code. | ||||||
16 | Any credit allowed under this subsection which is unused in | ||||||
17 | the year
the credit is earned may be carried forward to each of | ||||||
18 | the 5 taxable
years following the year for which the credit is | ||||||
19 | first computed until it is
used. This credit shall be applied | ||||||
20 | first to the earliest year for which
there is a liability. If | ||||||
21 | there is a credit under this subsection from more
than one tax | ||||||
22 | year that is available to offset a liability the earliest
| ||||||
23 | credit arising under this subsection shall be applied first. No | ||||||
24 | carryforward
credit may be claimed in any tax year ending on or | ||||||
25 | after
December 31, 2003. | ||||||
26 | (k) Research and development credit. For tax years ending |
| |||||||
| |||||||
1 | after July 1, 1990 and prior to
December 31, 2003, and | ||||||
2 | beginning again for tax years ending on or after December 31, | ||||||
3 | 2004, and ending prior to January 1, 2022, a taxpayer shall be
| ||||||
4 | allowed a credit against the tax imposed by subsections (a) and | ||||||
5 | (b) of this
Section for increasing research activities in this | ||||||
6 | State. The credit
allowed against the tax imposed by | ||||||
7 | subsections (a) and (b) shall be equal
to 6 1/2% of the | ||||||
8 | qualifying expenditures for increasing research activities
in | ||||||
9 | this State. For partners, shareholders of subchapter S | ||||||
10 | corporations, and
owners of limited liability companies, if the | ||||||
11 | liability company is treated as a
partnership for purposes of | ||||||
12 | federal and State income taxation, there shall be
allowed a | ||||||
13 | credit under this subsection to be determined in accordance | ||||||
14 | with the
determination of income and distributive share of | ||||||
15 | income under Sections 702 and
704 and subchapter S of the | ||||||
16 | Internal Revenue Code. | ||||||
17 | For purposes of this subsection, "qualifying expenditures" | ||||||
18 | means the
qualifying expenditures as defined for the federal | ||||||
19 | credit for increasing
research activities which would be | ||||||
20 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
21 | which are conducted in this State, "qualifying
expenditures for | ||||||
22 | increasing research activities in this State" means the
excess | ||||||
23 | of qualifying expenditures for the taxable year in which | ||||||
24 | incurred
over qualifying expenditures for the base period, | ||||||
25 | "qualifying expenditures
for the base period" means the average | ||||||
26 | of the qualifying expenditures for
each year in the base |
| |||||||
| |||||||
1 | period, and "base period" means the 3 taxable years
immediately | ||||||
2 | preceding the taxable year for which the determination is
being | ||||||
3 | made. | ||||||
4 | Any credit in excess of the tax liability for the taxable | ||||||
5 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
6 | unused credit shown on its final completed return carried over | ||||||
7 | as a credit
against the tax liability for the following 5 | ||||||
8 | taxable years or until it has
been fully used, whichever occurs | ||||||
9 | first; provided that no credit earned in a tax year ending | ||||||
10 | prior to December 31, 2003 may be carried forward to any year | ||||||
11 | ending on or after December 31, 2003. | ||||||
12 | If an unused credit is carried forward to a given year from | ||||||
13 | 2 or more
earlier years, that credit arising in the earliest | ||||||
14 | year will be applied
first against the tax liability for the | ||||||
15 | given year. If a tax liability for
the given year still | ||||||
16 | remains, the credit from the next earliest year will
then be | ||||||
17 | applied, and so on, until all credits have been used or no tax
| ||||||
18 | liability for the given year remains. Any remaining unused | ||||||
19 | credit or
credits then will be carried forward to the next | ||||||
20 | following year in which a
tax liability is incurred, except | ||||||
21 | that no credit can be carried forward to
a year which is more | ||||||
22 | than 5 years after the year in which the expense for
which the | ||||||
23 | credit is given was incurred. | ||||||
24 | No inference shall be drawn from this amendatory Act of the | ||||||
25 | 91st General
Assembly in construing this Section for taxable | ||||||
26 | years beginning before January
1, 1999. |
| |||||||
| |||||||
1 | It is the intent of the General Assembly that the research | ||||||
2 | and development credit under this subsection (k) shall apply | ||||||
3 | continuously for all tax years ending on or after December 31, | ||||||
4 | 2004 and ending prior to January 1, 2022, including, but not | ||||||
5 | limited to, the period beginning on January 1, 2016 and ending | ||||||
6 | on the effective date of this amendatory Act of the 100th | ||||||
7 | General Assembly. All actions taken in reliance on the | ||||||
8 | continuation of the credit under this subsection (k) by any | ||||||
9 | taxpayer are hereby validated. | ||||||
10 | (l) Environmental Remediation Tax Credit. | ||||||
11 | (i) For tax years ending after December 31, 1997 and on | ||||||
12 | or before
December 31, 2001, a taxpayer shall be allowed a | ||||||
13 | credit against the tax
imposed by subsections (a) and (b) | ||||||
14 | of this Section for certain amounts paid
for unreimbursed | ||||||
15 | eligible remediation costs, as specified in this | ||||||
16 | subsection.
For purposes of this Section, "unreimbursed | ||||||
17 | eligible remediation costs" means
costs approved by the | ||||||
18 | Illinois Environmental Protection Agency ("Agency") under
| ||||||
19 | Section 58.14 of the Environmental Protection Act that were | ||||||
20 | paid in performing
environmental remediation at a site for | ||||||
21 | which a No Further Remediation Letter
was issued by the | ||||||
22 | Agency and recorded under Section 58.10 of the | ||||||
23 | Environmental
Protection Act. The credit must be claimed | ||||||
24 | for the taxable year in which
Agency approval of the | ||||||
25 | eligible remediation costs is granted. The credit is
not | ||||||
26 | available to any taxpayer if the taxpayer or any related |
| |||||||
| |||||||
1 | party caused or
contributed to, in any material respect, a | ||||||
2 | release of regulated substances on,
in, or under the site | ||||||
3 | that was identified and addressed by the remedial
action | ||||||
4 | pursuant to the Site Remediation Program of the | ||||||
5 | Environmental Protection
Act. After the Pollution Control | ||||||
6 | Board rules are adopted pursuant to the
Illinois | ||||||
7 | Administrative Procedure Act for the administration and | ||||||
8 | enforcement of
Section 58.9 of the Environmental | ||||||
9 | Protection Act, determinations as to credit
availability | ||||||
10 | for purposes of this Section shall be made consistent with | ||||||
11 | those
rules. For purposes of this Section, "taxpayer" | ||||||
12 | includes a person whose tax
attributes the taxpayer has | ||||||
13 | succeeded to under Section 381 of the Internal
Revenue Code | ||||||
14 | and "related party" includes the persons disallowed a | ||||||
15 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
16 | Section 267 of the Internal
Revenue Code by virtue of being | ||||||
17 | a related taxpayer, as well as any of its
partners. The | ||||||
18 | credit allowed against the tax imposed by subsections (a) | ||||||
19 | and
(b) shall be equal to 25% of the unreimbursed eligible | ||||||
20 | remediation costs in
excess of $100,000 per site, except | ||||||
21 | that the $100,000 threshold shall not apply
to any site | ||||||
22 | contained in an enterprise zone as determined by the | ||||||
23 | Department of
Commerce and Community Affairs (now | ||||||
24 | Department of Commerce and Economic Opportunity). The | ||||||
25 | total credit allowed shall not exceed
$40,000 per year with | ||||||
26 | a maximum total of $150,000 per site. For partners and
|
| |||||||
| |||||||
1 | shareholders of subchapter S corporations, there shall be | ||||||
2 | allowed a credit
under this subsection to be determined in | ||||||
3 | accordance with the determination of
income and | ||||||
4 | distributive share of income under Sections 702 and 704 and
| ||||||
5 | subchapter S of the Internal Revenue Code. | ||||||
6 | (ii) A credit allowed under this subsection that is | ||||||
7 | unused in the year
the credit is earned may be carried | ||||||
8 | forward to each of the 5 taxable years
following the year | ||||||
9 | for which the credit is first earned until it is used.
The | ||||||
10 | term "unused credit" does not include any amounts of | ||||||
11 | unreimbursed eligible
remediation costs in excess of the | ||||||
12 | maximum credit per site authorized under
paragraph (i). | ||||||
13 | This credit shall be applied first to the earliest year
for | ||||||
14 | which there is a liability. If there is a credit under this | ||||||
15 | subsection
from more than one tax year that is available to | ||||||
16 | offset a liability, the
earliest credit arising under this | ||||||
17 | subsection shall be applied first. A
credit allowed under | ||||||
18 | this subsection may be sold to a buyer as part of a sale
of | ||||||
19 | all or part of the remediation site for which the credit | ||||||
20 | was granted. The
purchaser of a remediation site and the | ||||||
21 | tax credit shall succeed to the unused
credit and remaining | ||||||
22 | carry-forward period of the seller. To perfect the
| ||||||
23 | transfer, the assignor shall record the transfer in the | ||||||
24 | chain of title for the
site and provide written notice to | ||||||
25 | the Director of the Illinois Department of
Revenue of the | ||||||
26 | assignor's intent to sell the remediation site and the |
| |||||||
| |||||||
1 | amount of
the tax credit to be transferred as a portion of | ||||||
2 | the sale. In no event may a
credit be transferred to any | ||||||
3 | taxpayer if the taxpayer or a related party would
not be | ||||||
4 | eligible under the provisions of subsection (i). | ||||||
5 | (iii) For purposes of this Section, the term "site" | ||||||
6 | shall have the same
meaning as under Section 58.2 of the | ||||||
7 | Environmental Protection Act. | ||||||
8 | (m) Education expense credit. Beginning with tax years | ||||||
9 | ending after
December 31, 1999, a taxpayer who
is the custodian | ||||||
10 | of one or more qualifying pupils shall be allowed a credit
| ||||||
11 | against the tax imposed by subsections (a) and (b) of this | ||||||
12 | Section for
qualified education expenses incurred on behalf of | ||||||
13 | the qualifying pupils.
The credit shall be equal to 25% of | ||||||
14 | qualified education expenses, but in no
event may the total | ||||||
15 | credit under this subsection claimed by a
family that is the
| ||||||
16 | custodian of qualifying pupils exceed (i) $500 for tax years | ||||||
17 | ending prior to December 31, 2017, and (ii) $750 for tax years | ||||||
18 | ending on or after December 31, 2017. In no event shall a | ||||||
19 | credit under
this subsection reduce the taxpayer's liability | ||||||
20 | under this Act to less than
zero. Notwithstanding any other | ||||||
21 | provision of law, for taxable years beginning on or after | ||||||
22 | January 1, 2017, no taxpayer may claim a credit under this | ||||||
23 | subsection (m) if the taxpayer's adjusted gross income for the | ||||||
24 | taxable year exceeds (i) $500,000, in the case of spouses | ||||||
25 | filing a joint federal tax return or (ii) $250,000, in the case | ||||||
26 | of all other taxpayers. This subsection is exempt from the |
| |||||||
| |||||||
1 | provisions of Section 250 of this
Act. | ||||||
2 | For purposes of this subsection: | ||||||
3 | "Qualifying pupils" means individuals who (i) are | ||||||
4 | residents of the State of
Illinois, (ii) are under the age of | ||||||
5 | 21 at the close of the school year for
which a credit is | ||||||
6 | sought, and (iii) during the school year for which a credit
is | ||||||
7 | sought were full-time pupils enrolled in a kindergarten through | ||||||
8 | twelfth
grade education program at any school, as defined in | ||||||
9 | this subsection. | ||||||
10 | "Qualified education expense" means the amount incurred
on | ||||||
11 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
12 | book fees, and
lab fees at the school in which the pupil is | ||||||
13 | enrolled during the regular school
year. | ||||||
14 | "School" means any public or nonpublic elementary or | ||||||
15 | secondary school in
Illinois that is in compliance with Title | ||||||
16 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
17 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
18 | except that nothing shall be construed to require a child to
| ||||||
19 | attend any particular public or nonpublic school to qualify for | ||||||
20 | the credit
under this Section. | ||||||
21 | "Custodian" means, with respect to qualifying pupils, an | ||||||
22 | Illinois resident
who is a parent, the parents, a legal | ||||||
23 | guardian, or the legal guardians of the
qualifying pupils. | ||||||
24 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
25 | credit.
| ||||||
26 | (i) For tax years ending on or after December 31, 2006, |
| |||||||
| |||||||
1 | a taxpayer shall be allowed a credit against the tax | ||||||
2 | imposed by subsections (a) and (b) of this Section for | ||||||
3 | certain amounts paid for unreimbursed eligible remediation | ||||||
4 | costs, as specified in this subsection. For purposes of | ||||||
5 | this Section, "unreimbursed eligible remediation costs" | ||||||
6 | means costs approved by the Illinois Environmental | ||||||
7 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
8 | Environmental Protection Act that were paid in performing | ||||||
9 | environmental remediation at a site within a River Edge | ||||||
10 | Redevelopment Zone for which a No Further Remediation | ||||||
11 | Letter was issued by the Agency and recorded under Section | ||||||
12 | 58.10 of the Environmental Protection Act. The credit must | ||||||
13 | be claimed for the taxable year in which Agency approval of | ||||||
14 | the eligible remediation costs is granted. The credit is | ||||||
15 | not available to any taxpayer if the taxpayer or any | ||||||
16 | related party caused or contributed to, in any material | ||||||
17 | respect, a release of regulated substances on, in, or under | ||||||
18 | the site that was identified and addressed by the remedial | ||||||
19 | action pursuant to the Site Remediation Program of the | ||||||
20 | Environmental Protection Act. Determinations as to credit | ||||||
21 | availability for purposes of this Section shall be made | ||||||
22 | consistent with rules adopted by the Pollution Control | ||||||
23 | Board pursuant to the Illinois Administrative Procedure | ||||||
24 | Act for the administration and enforcement of Section 58.9 | ||||||
25 | of the Environmental Protection Act. For purposes of this | ||||||
26 | Section, "taxpayer" includes a person whose tax attributes |
| |||||||
| |||||||
1 | the taxpayer has succeeded to under Section 381 of the | ||||||
2 | Internal Revenue Code and "related party" includes the | ||||||
3 | persons disallowed a deduction for losses by paragraphs | ||||||
4 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
5 | Code by virtue of being a related taxpayer, as well as any | ||||||
6 | of its partners. The credit allowed against the tax imposed | ||||||
7 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
8 | unreimbursed eligible remediation costs in excess of | ||||||
9 | $100,000 per site. | ||||||
10 | (ii) A credit allowed under this subsection that is | ||||||
11 | unused in the year the credit is earned may be carried | ||||||
12 | forward to each of the 5 taxable years following the year | ||||||
13 | for which the credit is first earned until it is used. This | ||||||
14 | credit shall be applied first to the earliest year for | ||||||
15 | which there is a liability. If there is a credit under this | ||||||
16 | subsection from more than one tax year that is available to | ||||||
17 | offset a liability, the earliest credit arising under this | ||||||
18 | subsection shall be applied first. A credit allowed under | ||||||
19 | this subsection may be sold to a buyer as part of a sale of | ||||||
20 | all or part of the remediation site for which the credit | ||||||
21 | was granted. The purchaser of a remediation site and the | ||||||
22 | tax credit shall succeed to the unused credit and remaining | ||||||
23 | carry-forward period of the seller. To perfect the | ||||||
24 | transfer, the assignor shall record the transfer in the | ||||||
25 | chain of title for the site and provide written notice to | ||||||
26 | the Director of the Illinois Department of Revenue of the |
| |||||||
| |||||||
1 | assignor's intent to sell the remediation site and the | ||||||
2 | amount of the tax credit to be transferred as a portion of | ||||||
3 | the sale. In no event may a credit be transferred to any | ||||||
4 | taxpayer if the taxpayer or a related party would not be | ||||||
5 | eligible under the provisions of subsection (i). | ||||||
6 | (iii) For purposes of this Section, the term "site" | ||||||
7 | shall have the same meaning as under Section 58.2 of the | ||||||
8 | Environmental Protection Act. | ||||||
9 | (o) For each of taxable years during the Compassionate Use | ||||||
10 | of Medical Cannabis Pilot Program, a surcharge is imposed on | ||||||
11 | all taxpayers on income arising from the sale or exchange of | ||||||
12 | capital assets, depreciable business property, real property | ||||||
13 | used in the trade or business, and Section 197 intangibles of | ||||||
14 | an organization registrant under the Compassionate Use of | ||||||
15 | Medical Cannabis Pilot Program Act. The amount of the surcharge | ||||||
16 | is equal to the amount of federal income tax liability for the | ||||||
17 | taxable year attributable to those sales and exchanges. The | ||||||
18 | surcharge imposed does not apply if: | ||||||
19 | (1) the medical cannabis cultivation center | ||||||
20 | registration, medical cannabis dispensary registration, or | ||||||
21 | the property of a registration is transferred as a result | ||||||
22 | of any of the following: | ||||||
23 | (A) bankruptcy, a receivership, or a debt | ||||||
24 | adjustment initiated by or against the initial | ||||||
25 | registration or the substantial owners of the initial | ||||||
26 | registration; |
| |||||||
| |||||||
1 | (B) cancellation, revocation, or termination of | ||||||
2 | any registration by the Illinois Department of Public | ||||||
3 | Health; | ||||||
4 | (C) a determination by the Illinois Department of | ||||||
5 | Public Health that transfer of the registration is in | ||||||
6 | the best interests of Illinois qualifying patients as | ||||||
7 | defined by the Compassionate Use of Medical Cannabis | ||||||
8 | Pilot Program Act; | ||||||
9 | (D) the death of an owner of the equity interest in | ||||||
10 | a registrant; | ||||||
11 | (E) the acquisition of a controlling interest in | ||||||
12 | the stock or substantially all of the assets of a | ||||||
13 | publicly traded company; | ||||||
14 | (F) a transfer by a parent company to a wholly | ||||||
15 | owned subsidiary; or | ||||||
16 | (G) the transfer or sale to or by one person to | ||||||
17 | another person where both persons were initial owners | ||||||
18 | of the registration when the registration was issued; | ||||||
19 | or | ||||||
20 | (2) the cannabis cultivation center registration, | ||||||
21 | medical cannabis dispensary registration, or the | ||||||
22 | controlling interest in a registrant's property is | ||||||
23 | transferred in a transaction to lineal descendants in which | ||||||
24 | no gain or loss is recognized or as a result of a | ||||||
25 | transaction in accordance with Section 351 of the Internal | ||||||
26 | Revenue Code in which no gain or loss is recognized. |
| |||||||
| |||||||
1 | (Source: P.A. 100-22, eff. 7-6-17.)
| ||||||
2 | (35 ILCS 5/211)
| ||||||
3 | Sec. 211. Economic Development for a Growing Economy Tax | ||||||
4 | Credit. For tax years beginning on or after January 1, 1999, a | ||||||
5 | Taxpayer
who has entered into an Agreement (including a New | ||||||
6 | Construction EDGE Agreement) under the Economic Development | ||||||
7 | for a Growing
Economy Tax Credit Act is entitled to a credit | ||||||
8 | against the taxes imposed
under subsections (a) and (b) of | ||||||
9 | Section 201 of this Act in an amount to be
determined in the | ||||||
10 | Agreement. If the Taxpayer is a partnership or Subchapter
S | ||||||
11 | corporation, the credit shall be allowed to the partners or | ||||||
12 | shareholders in
accordance with the determination of income and | ||||||
13 | distributive share of income
under Sections 702 and 704 and | ||||||
14 | subchapter S of the Internal Revenue Code.
The Department, in | ||||||
15 | cooperation with the Department
of Commerce and Economic | ||||||
16 | Opportunity, shall prescribe rules to enforce and
administer | ||||||
17 | the provisions of this Section. This Section is
exempt from the | ||||||
18 | provisions of Section 250 of this Act.
| ||||||
19 | The credit shall be subject to the conditions set forth in
| ||||||
20 | the Agreement and the following limitations:
| ||||||
21 | (1) The tax credit shall not exceed the Incremental | ||||||
22 | Income Tax
(as defined in Section 5-5 of the Economic | ||||||
23 | Development for a Growing Economy
Tax Credit Act) with | ||||||
24 | respect to the project ; additionally, the New Construction | ||||||
25 | EDGE Credit shall not exceed the New Construction EDGE |
| |||||||
| |||||||
1 | Incremental Income Tax (as defined in Section 5-5 of the | ||||||
2 | Economic Development for a Growing Economy Tax Credit Act) .
| ||||||
3 | (2) The amount of the credit allowed during the tax | ||||||
4 | year plus the sum of
all amounts allowed in prior years | ||||||
5 | shall not exceed 100% of the aggregate
amount expended by | ||||||
6 | the Taxpayer during all prior tax years on approved costs
| ||||||
7 | defined by Agreement.
| ||||||
8 | (3) The amount of the credit shall be determined on an | ||||||
9 | annual
basis. Except as applied in a carryover year | ||||||
10 | pursuant to Section 211(4) of
this Act, the credit may not | ||||||
11 | be applied against any State
income tax liability in more | ||||||
12 | than 10 taxable
years; provided, however, that (i) an | ||||||
13 | eligible business certified by the
Department of Commerce | ||||||
14 | and Economic Opportunity under the Corporate Headquarters
| ||||||
15 | Relocation Act may not
apply the credit against any of its | ||||||
16 | State income tax liability in more than 15
taxable years
| ||||||
17 | and (ii) credits allowed to that eligible business are | ||||||
18 | subject to the
conditions
and requirements set forth in | ||||||
19 | Sections 5-35 and 5-45 of the Economic
Development for a | ||||||
20 | Growing Economy Tax Credit Act and Section 5-51 as | ||||||
21 | applicable to New Construction EDGE Credits .
| ||||||
22 | (4) The credit may not exceed the amount of taxes | ||||||
23 | imposed pursuant to
subsections (a) and (b) of Section 201 | ||||||
24 | of this Act. Any credit
that is unused in the year the | ||||||
25 | credit is computed may be carried forward and
applied to | ||||||
26 | the tax liability of the 5 taxable years following the |
| |||||||
| |||||||
1 | excess credit
year. The credit shall be applied to the | ||||||
2 | earliest year for which there is a
tax liability. If there | ||||||
3 | are credits from more than one tax year that are
available | ||||||
4 | to offset a liability, the earlier credit shall be applied | ||||||
5 | first.
| ||||||
6 | (5) No credit shall be allowed with respect to any | ||||||
7 | Agreement for any
taxable year ending after the | ||||||
8 | Noncompliance Date. Upon receiving notification
by the | ||||||
9 | Department of Commerce and Economic Opportunity of the | ||||||
10 | noncompliance of a
Taxpayer with an Agreement, the | ||||||
11 | Department shall notify the Taxpayer that no
credit is | ||||||
12 | allowed with respect to that Agreement for any taxable year | ||||||
13 | ending
after the Noncompliance Date, as stated in such | ||||||
14 | notification. If any credit
has been allowed with respect | ||||||
15 | to an Agreement for a taxable year ending after
the | ||||||
16 | Noncompliance Date for that Agreement, any refund paid to | ||||||
17 | the
Taxpayer for that taxable year shall, to the extent of | ||||||
18 | that credit allowed, be
an erroneous refund within the | ||||||
19 | meaning of Section 912 of this Act.
| ||||||
20 | (6) For purposes of this Section, the terms | ||||||
21 | "Agreement", "Incremental
Income Tax", "New Construction | ||||||
22 | EDGE Agreement", "New Construction EDGE Credit", "New | ||||||
23 | Construction EDGE Incremental Income Tax", and | ||||||
24 | "Noncompliance Date" have the same meaning as when used
in | ||||||
25 | the Economic Development for a Growing Economy Tax Credit | ||||||
26 | Act.
|
| |||||||
| |||||||
1 | (Source: P.A. 94-793, eff. 5-19-06.)
| ||||||
2 | (35 ILCS 5/221) | ||||||
3 | Sec. 221. Rehabilitation costs; qualified historic | ||||||
4 | properties; River Edge Redevelopment Zone. | ||||||
5 | (a) For taxable years that begin on or after January 1, | ||||||
6 | 2012 and begin prior to January 1, 2018, there shall be allowed | ||||||
7 | a tax credit against the tax imposed by subsections (a) and (b) | ||||||
8 | of Section 201 of this Act in an amount equal to 25% of | ||||||
9 | qualified expenditures incurred by a qualified taxpayer during | ||||||
10 | the taxable year in the restoration and preservation of a | ||||||
11 | qualified historic structure located in a River Edge | ||||||
12 | Redevelopment Zone pursuant to a qualified rehabilitation | ||||||
13 | plan, provided that the total amount of such expenditures (i) | ||||||
14 | must equal $5,000 or more and (ii) must exceed 50% of the | ||||||
15 | purchase price of the property. | ||||||
16 | (a-1) For taxable years that begin on or after January 1, | ||||||
17 | 2018 and end prior to January 1, 2022, there shall be allowed a | ||||||
18 | tax credit against the tax imposed by subsections (a) and (b) | ||||||
19 | of Section 201 of this Act in an aggregate amount equal to 25% | ||||||
20 | of qualified expenditures incurred by a qualified taxpayer in | ||||||
21 | the restoration and preservation of a qualified historic | ||||||
22 | structure located in a River Edge Redevelopment Zone pursuant | ||||||
23 | to a qualified rehabilitation plan, provided that the total | ||||||
24 | amount of such expenditures must (i) equal $5,000 or more and | ||||||
25 | (ii) exceed the adjusted basis of the qualified historic |
| |||||||
| |||||||
1 | structure on the first day the qualified rehabilitation plan | ||||||
2 | begins. For any rehabilitation project, regardless of duration | ||||||
3 | or number of phases, the project's compliance with the | ||||||
4 | foregoing provisions (i) and (ii) shall be determined based on | ||||||
5 | the aggregate amount of qualified expenditures for the entire | ||||||
6 | project and may include expenditures incurred under subsection | ||||||
7 | (a), this subsection, or both subsection (a) and this | ||||||
8 | subsection. If the qualified rehabilitation plan spans | ||||||
9 | multiple years, the aggregate credit for the entire project | ||||||
10 | shall be allowed in the last taxable year, except for phased | ||||||
11 | rehabilitation projects, which may receive credits upon | ||||||
12 | completion of each phase. Before obtaining the first phased | ||||||
13 | credit: (A) the total amount of such expenditures must meet the | ||||||
14 | requirements of provisions (i) and (ii) of this subsection; (B) | ||||||
15 | the rehabilitated portion of the qualified historic structure | ||||||
16 | must be placed in service; and (C) the requirements of | ||||||
17 | subsection (b) must be met. | ||||||
18 | (a-2) For taxable years beginning on or after January 1, | ||||||
19 | 2021 and ending prior to January 1, 2022, there shall be | ||||||
20 | allowed a tax credit against the tax imposed by subsections (a) | ||||||
21 | and (b) of Section 201 as provided in Section 10-10.3 of the | ||||||
22 | River Edge Redevelopment Zone Act. The credit allowed under | ||||||
23 | this subsection (a-2) shall apply only to taxpayers that make a | ||||||
24 | capital investment of at least $1,000,000 in a qualified | ||||||
25 | rehabilitation plan. | ||||||
26 | The credit or credits may not reduce the taxpayer's |
| |||||||
| |||||||
1 | liability to less than zero. If the amount of the credit or | ||||||
2 | credits exceeds the taxpayer's liability, the excess may be | ||||||
3 | carried forward and applied against the taxpayer's liability in | ||||||
4 | succeeding calendar years in the manner provided under | ||||||
5 | paragraph (4) of Section 211 of this Act. The credit or credits | ||||||
6 | shall be applied to the earliest year for which there is a tax | ||||||
7 | liability. If there are credits from more than one taxable year | ||||||
8 | that are available to offset a liability, the earlier credit | ||||||
9 | shall be applied first. | ||||||
10 | For partners, shareholders of Subchapter S corporations, | ||||||
11 | and owners of limited liability companies, if the liability | ||||||
12 | company is treated as a partnership for the purposes of federal | ||||||
13 | and State income taxation, there shall be allowed a credit | ||||||
14 | under this Section to be determined in accordance with the | ||||||
15 | determination of income and distributive share of income under | ||||||
16 | Sections 702 and 704 and Subchapter S of the Internal Revenue | ||||||
17 | Code. | ||||||
18 | The total aggregate amount of credits awarded under the | ||||||
19 | Blue Collar Jobs Act (Article 20 of this amendatory Act of the | ||||||
20 | 101st General Assembly) shall not exceed $20,000,000 in any | ||||||
21 | State fiscal year. | ||||||
22 | (b) To obtain a tax credit pursuant to this Section, the | ||||||
23 | taxpayer must apply with the Department of Natural Resources. | ||||||
24 | The Department of Natural Resources shall determine the amount | ||||||
25 | of eligible rehabilitation costs and expenses in addition to | ||||||
26 | the amount of the River Edge construction jobs credit within 45 |
| |||||||
| |||||||
1 | days of receipt of a complete application. The taxpayer must | ||||||
2 | submit a certification of costs prepared by an independent | ||||||
3 | certified public accountant that certifies (i) the project | ||||||
4 | expenses, (ii) whether those expenses are qualified | ||||||
5 | expenditures, and (iii) that the qualified expenditures exceed | ||||||
6 | the adjusted basis of the qualified historic structure on the | ||||||
7 | first day the qualified rehabilitation plan commenced. The | ||||||
8 | Department of Natural Resources is authorized, but not | ||||||
9 | required, to accept this certification of costs to determine | ||||||
10 | the amount of qualified expenditures and the amount of the | ||||||
11 | credit. The Department of Natural Resources shall provide | ||||||
12 | guidance as to the minimum standards to be followed in the | ||||||
13 | preparation of such certification. The Department of Natural | ||||||
14 | Resources and the National Park Service shall determine whether | ||||||
15 | the rehabilitation is consistent with the United States | ||||||
16 | Secretary of the Interior's Standards for Rehabilitation. | ||||||
17 | (b-1) Upon completion of the project and approval of the | ||||||
18 | complete application, the Department of Natural Resources | ||||||
19 | shall issue a single certificate in the amount of the eligible | ||||||
20 | credits equal to 25% of qualified expenditures incurred during | ||||||
21 | the eligible taxable years, as defined in subsections (a) and | ||||||
22 | (a-1), excepting any credits awarded under subsection (a) prior | ||||||
23 | to January 1, 2019 ( the effective date of Public Act 100-629) | ||||||
24 | this amendatory Act of the 100th General Assembly and any | ||||||
25 | phased credits issued prior to the eligible taxable year under | ||||||
26 | subsection (a-1). At the time the certificate is issued, an |
| |||||||
| |||||||
1 | issuance fee up to the maximum amount of 2% of the amount of | ||||||
2 | the credits issued by the certificate may be collected from the | ||||||
3 | applicant to administer the provisions of this Section. If | ||||||
4 | collected, this issuance fee shall be deposited into the | ||||||
5 | Historic Property Administrative Fund, a special fund created | ||||||
6 | in the State treasury. Subject to appropriation, moneys in the | ||||||
7 | Historic Property Administrative Fund shall be provided to the | ||||||
8 | Department of Natural Resources as reimbursement Department of | ||||||
9 | Natural Resources for the costs associated with administering | ||||||
10 | this Section. | ||||||
11 | (c) The taxpayer must attach the certificate to the tax | ||||||
12 | return on which the credits are to be claimed. The tax credit | ||||||
13 | under this Section may not reduce the taxpayer's liability to | ||||||
14 | less than
zero. If the amount of the credit exceeds the tax | ||||||
15 | liability for the year, the excess credit may be carried | ||||||
16 | forward and applied to the tax liability of the 5 taxable years | ||||||
17 | following the excess credit year. | ||||||
18 | (c-1) Subject to appropriation, moneys in the Historic | ||||||
19 | Property Administrative Fund shall be used, on a biennial basis | ||||||
20 | beginning at the end of the second fiscal year after January 1, | ||||||
21 | 2019 ( the effective date of Public Act 100-629) this amendatory | ||||||
22 | Act of the 100th General Assembly , to hire a qualified third | ||||||
23 | party to prepare a biennial report to assess the overall | ||||||
24 | economic impact to the State from the qualified rehabilitation | ||||||
25 | projects under this Section completed in that year and in | ||||||
26 | previous years. The overall economic impact shall include at |
| |||||||
| |||||||
1 | least: (1) the direct and indirect or induced economic impacts | ||||||
2 | of completed projects; (2) temporary, permanent, and | ||||||
3 | construction jobs created; (3) sales, income, and property tax | ||||||
4 | generation before, during construction, and after completion; | ||||||
5 | and (4) indirect neighborhood impact after completion. The | ||||||
6 | report shall be submitted to the Governor and the General | ||||||
7 | Assembly. The report to the General Assembly shall be filed | ||||||
8 | with the Clerk of the House of Representatives and the | ||||||
9 | Secretary of the Senate in electronic form only, in the manner | ||||||
10 | that the Clerk and the Secretary shall direct. | ||||||
11 | (c-2) The Department of Natural Resources may adopt rules | ||||||
12 | to implement this Section in addition to the rules expressly | ||||||
13 | authorized in this Section. | ||||||
14 | (d) As used in this Section, the following terms have the | ||||||
15 | following meanings. | ||||||
16 | "Phased rehabilitation" means a project that is completed | ||||||
17 | in phases, as defined under Section 47 of the federal Internal | ||||||
18 | Revenue Code and pursuant to National Park Service regulations | ||||||
19 | at 36 C.F.R. 67. | ||||||
20 | "Placed in service" means the date when the property is | ||||||
21 | placed in a condition or state of readiness and availability | ||||||
22 | for a specifically assigned function as defined under Section | ||||||
23 | 47 of the federal Internal Revenue Code and federal Treasury | ||||||
24 | Regulation Sections 1.46 and 1.48. | ||||||
25 | "Qualified expenditure" means all the costs and expenses | ||||||
26 | defined as qualified rehabilitation expenditures under Section |
| |||||||
| |||||||
1 | 47 of the federal Internal Revenue Code that were incurred in | ||||||
2 | connection with a qualified historic structure. | ||||||
3 | "Qualified historic structure" means a certified historic | ||||||
4 | structure as defined under Section 47(c)(3) of the federal | ||||||
5 | Internal Revenue Code. | ||||||
6 | "Qualified rehabilitation plan" means a project that is | ||||||
7 | approved by the Department of Natural Resources and the | ||||||
8 | National Park Service as being consistent with the United | ||||||
9 | States Secretary of the Interior's Standards for | ||||||
10 | Rehabilitation. | ||||||
11 | "Qualified taxpayer" means the owner of the qualified | ||||||
12 | historic structure or any other person who qualifies for the | ||||||
13 | federal rehabilitation credit allowed by Section 47 of the | ||||||
14 | federal Internal Revenue Code with respect to that qualified | ||||||
15 | historic structure. Partners, shareholders of subchapter S | ||||||
16 | corporations, and owners of limited liability companies (if the | ||||||
17 | limited liability company is treated as a partnership for | ||||||
18 | purposes of federal and State income taxation) are entitled to | ||||||
19 | a credit under this Section to be determined in accordance with | ||||||
20 | the determination of income and distributive share of income | ||||||
21 | under Sections 702 and 703 and subchapter S of the Internal | ||||||
22 | Revenue Code, provided that credits granted to a partnership, a | ||||||
23 | limited liability company taxed as a partnership, or other | ||||||
24 | multiple owners of property shall be passed through to the | ||||||
25 | partners, members, or owners respectively on a pro rata basis | ||||||
26 | or pursuant to an executed agreement among the partners, |
| |||||||
| |||||||
1 | members, or owners documenting any alternate distribution | ||||||
2 | method.
| ||||||
3 | (Source: P.A. 99-914, eff. 12-20-16; 100-236, eff. 8-18-17; | ||||||
4 | 100-629, eff. 1-1-19; 100-695, eff. 8-3-18; revised 10-18-18.)
| ||||||
5 | Section 20-15. The Economic Development for a Growing | ||||||
6 | Economy Tax Credit Act is amended by changing Section 5-5 and | ||||||
7 | by adding Sections 5-51 and 5-56 as follows:
| ||||||
8 | (35 ILCS 10/5-5)
| ||||||
9 | Sec. 5-5. Definitions. As used in this Act:
| ||||||
10 | "Agreement" means the Agreement between a Taxpayer and the | ||||||
11 | Department under
the provisions of Section 5-50 of this Act.
| ||||||
12 | "Applicant" means a Taxpayer that is operating a business | ||||||
13 | located or that
the Taxpayer plans to locate within the State | ||||||
14 | of Illinois and that is engaged
in interstate or intrastate | ||||||
15 | commerce for the purpose of manufacturing,
processing, | ||||||
16 | assembling, warehousing, or distributing products, conducting
| ||||||
17 | research and development, providing tourism services, or | ||||||
18 | providing services
in interstate commerce, office industries, | ||||||
19 | or agricultural processing, but
excluding retail, retail food, | ||||||
20 | health, or professional services.
"Applicant" does not include | ||||||
21 | a Taxpayer who closes or
substantially reduces an operation at | ||||||
22 | one location in the State and relocates
substantially the same | ||||||
23 | operation to another location in the State. This does
not | ||||||
24 | prohibit a Taxpayer from expanding its operations at another |
| |||||||
| |||||||
1 | location in
the State, provided that existing operations of a | ||||||
2 | similar nature located within
the State are not closed or | ||||||
3 | substantially reduced. This also does not prohibit
a Taxpayer | ||||||
4 | from moving its operations from one location in the State to | ||||||
5 | another
location in the State for the purpose of expanding the | ||||||
6 | operation provided that
the Department determines that | ||||||
7 | expansion cannot reasonably be accommodated
within the | ||||||
8 | municipality in which the business is located, or in the case | ||||||
9 | of a
business located in an incorporated area of the county, | ||||||
10 | within the county in
which the business is located, after | ||||||
11 | conferring with the chief elected
official of the municipality | ||||||
12 | or county and taking into consideration any
evidence offered by | ||||||
13 | the municipality or county regarding the ability to
accommodate | ||||||
14 | expansion within the municipality or county.
| ||||||
15 | "Committee" means the Illinois Business Investment | ||||||
16 | Committee created under
Section 5-25 of this Act within the | ||||||
17 | Illinois Economic Development Board.
| ||||||
18 | "Credit" means the amount agreed to between the Department | ||||||
19 | and Applicant
under this Act, but not to exceed the lesser of: | ||||||
20 | (1) the sum of (i) 50% of the Incremental Income Tax | ||||||
21 | attributable to
New Employees at the Applicant's project and | ||||||
22 | (ii) 10% of the training costs of New Employees; or (2) 100% of | ||||||
23 | the Incremental Income Tax attributable to
New Employees at the | ||||||
24 | Applicant's project. However, if the project is located in an | ||||||
25 | underserved area, then the amount of the Credit may not exceed | ||||||
26 | the lesser of: (1) the sum of (i) 75% of the Incremental Income |
| |||||||
| |||||||
1 | Tax attributable to
New Employees at the Applicant's project | ||||||
2 | and (ii) 10% of the training costs of New Employees; or (2) | ||||||
3 | 100% of the Incremental Income Tax attributable to
New | ||||||
4 | Employees at the Applicant's project. If an Applicant agrees to | ||||||
5 | hire the required number of New Employees, then the maximum | ||||||
6 | amount of the Credit for that Applicant may be increased by an | ||||||
7 | amount not to exceed 25% of the Incremental Income Tax | ||||||
8 | attributable to retained employees at the Applicant's project; | ||||||
9 | provided that, in order to receive the increase for retained | ||||||
10 | employees, the Applicant must provide the additional evidence | ||||||
11 | required under paragraph (3) of subsection (b) of Section 5-25.
| ||||||
12 | "Department" means the Department of Commerce and Economic | ||||||
13 | Opportunity.
| ||||||
14 | "Director" means the Director of Commerce and Economic | ||||||
15 | Opportunity.
| ||||||
16 | "Full-time Employee" means an individual who is employed | ||||||
17 | for consideration
for at least 35 hours each week or who | ||||||
18 | renders any other standard of service
generally accepted by | ||||||
19 | industry custom or practice as full-time employment. An | ||||||
20 | individual for whom a W-2 is issued by a Professional Employer | ||||||
21 | Organization (PEO) is a full-time employee if employed in the | ||||||
22 | service of the Applicant for consideration for at least 35 | ||||||
23 | hours each week or who renders any other standard of service | ||||||
24 | generally accepted by industry custom or practice as full-time | ||||||
25 | employment to Applicant.
| ||||||
26 | "Incremental Income Tax" means the total amount withheld |
| |||||||
| |||||||
1 | during the taxable
year from the compensation of New Employees | ||||||
2 | and, if applicable, retained employees under Article 7 of the | ||||||
3 | Illinois
Income Tax Act arising from employment at a project | ||||||
4 | that is the subject of an
Agreement.
| ||||||
5 | "New Construction EDGE Agreement" means the Agreement | ||||||
6 | between a Taxpayer and the Department under the provisions of | ||||||
7 | Section 5-51 of this Act. | ||||||
8 | "New Construction EDGE Credit" means an amount agreed to | ||||||
9 | between the Department and the Applicant under this Act as part | ||||||
10 | of a New Construction EDGE Agreement that does not exceed 50% | ||||||
11 | of the Incremental Income Tax attributable to New Construction | ||||||
12 | EDGE Employees at the Applicant's project; however, if the New | ||||||
13 | Construction EDGE Project is located in an underserved area, | ||||||
14 | then the amount of the New Construction EDGE Credit may not | ||||||
15 | exceed 75% of the Incremental Income Tax attributable to New | ||||||
16 | Construction EDGE Employees at the Applicant's New | ||||||
17 | Construction EDGE Project. | ||||||
18 | "New Construction EDGE Employee" means a laborer or worker | ||||||
19 | who is employed by an Illinois contractor or subcontractor in | ||||||
20 | the actual construction work on the site of a New Construction | ||||||
21 | EDGE Project, pursuant to a New Construction EDGE Agreement. | ||||||
22 | "New Construction EDGE Incremental Income Tax" means the | ||||||
23 | total amount withheld during the taxable year from the | ||||||
24 | compensation of New Construction EDGE Employees. | ||||||
25 | "New Construction EDGE Project" means the building of a | ||||||
26 | Taxpayer's structure or building, or making improvements of any |
| |||||||
| |||||||
1 | kind to real property. "New Construction EDGE Project" does not | ||||||
2 | include the routine operation, routine repair, or routine | ||||||
3 | maintenance of existing structures, buildings, or real | ||||||
4 | property. | ||||||
5 | "New Employee" means:
| ||||||
6 | (a) A Full-time Employee first employed by a Taxpayer | ||||||
7 | in the project
that is the subject of an Agreement and who | ||||||
8 | is hired after the Taxpayer
enters into the tax credit | ||||||
9 | Agreement.
| ||||||
10 | (b) The term "New Employee" does not include:
| ||||||
11 | (1) an employee of the Taxpayer who performs a job | ||||||
12 | that was previously
performed by another employee, if | ||||||
13 | that job existed for at least 6
months before hiring | ||||||
14 | the employee;
| ||||||
15 | (2) an employee of the Taxpayer who was previously | ||||||
16 | employed in
Illinois by a Related Member of the | ||||||
17 | Taxpayer and whose employment was
shifted to the | ||||||
18 | Taxpayer after the Taxpayer entered into the tax credit
| ||||||
19 | Agreement; or
| ||||||
20 | (3) a child, grandchild, parent, or spouse, other | ||||||
21 | than a spouse who
is legally separated from the | ||||||
22 | individual, of any individual who has a direct
or an | ||||||
23 | indirect ownership interest of at least 5% in the | ||||||
24 | profits, capital, or
value of the Taxpayer.
| ||||||
25 | (c) Notwithstanding paragraph (1) of subsection (b), | ||||||
26 | an employee may be
considered a New Employee under the |
| |||||||
| |||||||
1 | Agreement if the employee performs a job
that was | ||||||
2 | previously performed by an employee who was:
| ||||||
3 | (1) treated under the Agreement as a New Employee; | ||||||
4 | and
| ||||||
5 | (2) promoted by the Taxpayer to another job.
| ||||||
6 | (d) Notwithstanding subsection (a), the Department may | ||||||
7 | award Credit to an
Applicant with respect to an employee | ||||||
8 | hired prior to the date of the Agreement
if:
| ||||||
9 | (1) the Applicant is in receipt of a letter from | ||||||
10 | the Department stating
an
intent to enter into a credit | ||||||
11 | Agreement;
| ||||||
12 | (2) the letter described in paragraph (1) is issued | ||||||
13 | by the
Department not later than 15 days after the | ||||||
14 | effective date of this Act; and
| ||||||
15 | (3) the employee was hired after the date the | ||||||
16 | letter described in
paragraph (1) was issued.
| ||||||
17 | "Noncompliance Date" means, in the case of a Taxpayer that | ||||||
18 | is not complying
with the requirements of the Agreement or the | ||||||
19 | provisions of this Act, the day
following the last date upon | ||||||
20 | which the Taxpayer was in compliance with the
requirements of | ||||||
21 | the Agreement and the provisions of this Act, as determined
by | ||||||
22 | the Director, pursuant to Section 5-65.
| ||||||
23 | "Pass Through Entity" means an entity that is exempt from | ||||||
24 | the tax under
subsection (b) or (c) of Section 205 of the | ||||||
25 | Illinois Income Tax Act.
| ||||||
26 | "Professional Employer Organization" (PEO) means an |
| |||||||
| |||||||
1 | employee leasing company, as defined in Section 206.1(A)(2) of | ||||||
2 | the Illinois Unemployment Insurance Act.
| ||||||
3 | "Related Member" means a person that, with respect to the | ||||||
4 | Taxpayer during
any portion of the taxable year, is any one of | ||||||
5 | the following:
| ||||||
6 | (1) An individual stockholder, if the stockholder and | ||||||
7 | the members of the
stockholder's family (as defined in | ||||||
8 | Section 318 of the Internal Revenue Code)
own directly, | ||||||
9 | indirectly, beneficially, or constructively, in the | ||||||
10 | aggregate,
at least 50% of the value of the Taxpayer's | ||||||
11 | outstanding stock.
| ||||||
12 | (2) A partnership, estate, or trust and any partner or | ||||||
13 | beneficiary,
if the partnership, estate, or trust, and its | ||||||
14 | partners or beneficiaries own
directly, indirectly, | ||||||
15 | beneficially, or constructively, in the aggregate, at
| ||||||
16 | least 50% of the profits, capital, stock, or value of the
| ||||||
17 | Taxpayer.
| ||||||
18 | (3) A corporation, and any party related to the | ||||||
19 | corporation in a manner
that would require an attribution | ||||||
20 | of stock from the corporation to the
party or from the | ||||||
21 | party to the corporation under the attribution rules
of | ||||||
22 | Section 318 of the Internal Revenue Code, if the Taxpayer | ||||||
23 | owns
directly, indirectly, beneficially, or constructively | ||||||
24 | at least
50% of the value of the corporation's outstanding | ||||||
25 | stock.
| ||||||
26 | (4) A corporation and any party related to that |
| |||||||
| |||||||
1 | corporation in a manner
that would require an attribution | ||||||
2 | of stock from the corporation to the party or
from the | ||||||
3 | party to the corporation under the attribution rules of | ||||||
4 | Section 318 of
the Internal Revenue Code, if the | ||||||
5 | corporation and all such related parties own
in the | ||||||
6 | aggregate at least 50% of the profits, capital, stock, or | ||||||
7 | value of the
Taxpayer.
| ||||||
8 | (5) A person to or from whom there is attribution of | ||||||
9 | stock ownership
in accordance with Section 1563(e) of the | ||||||
10 | Internal Revenue Code, except,
for purposes of determining | ||||||
11 | whether a person is a Related Member under
this paragraph, | ||||||
12 | 20% shall be substituted for 5% wherever 5% appears in
| ||||||
13 | Section 1563(e) of the Internal Revenue Code.
| ||||||
14 | "Taxpayer" means an individual, corporation, partnership, | ||||||
15 | or other entity
that has any Illinois Income Tax liability.
| ||||||
16 | "Underserved area" means a geographic area that meets one | ||||||
17 | or more of the following conditions: | ||||||
18 | (1) the area has a poverty rate of at least 20% | ||||||
19 | according to the latest federal decennial census; | ||||||
20 | (2) 75% or more of the children in the area participate | ||||||
21 | in the federal free lunch program according to reported | ||||||
22 | statistics from the State Board of Education; | ||||||
23 | (3) at least 20% of the households in the area receive | ||||||
24 | assistance under the Supplemental Nutrition Assistance | ||||||
25 | Program (SNAP); or | ||||||
26 | (4) the area has
an average unemployment rate, as |
| |||||||
| |||||||
1 | determined by the Illinois Department of
Employment | ||||||
2 | Security, that is more than 120% of the national | ||||||
3 | unemployment average, as
determined by the U.S. Department | ||||||
4 | of Labor, for a period of at least 2 consecutive calendar | ||||||
5 | years preceding the date of the application. | ||||||
6 | (Source: P.A. 100-511, eff. 9-18-17.)
| ||||||
7 | (35 ILCS 10/5-51 new) | ||||||
8 | Sec. 5-51. New Construction EDGE Agreement. | ||||||
9 | (a) Notwithstanding any other provisions of this Act, and | ||||||
10 | in addition to any Credit otherwise allowed under this Act, | ||||||
11 | beginning on January 1, 2021, there is allowed a New | ||||||
12 | Construction EDGE Credit for eligible Applicants that meet the | ||||||
13 | following criteria: | ||||||
14 | (1) the Department has certified that the Applicant | ||||||
15 | meets all requirements of Sections 5-15, 5-20, and 5-25; | ||||||
16 | and | ||||||
17 | (2) the Department has certified that, pursuant to | ||||||
18 | Section 5-20, the Applicant's Agreement includes a capital | ||||||
19 | investment of at least $10,000,000 in a New Construction | ||||||
20 | EDGE Project to be placed in service within the State as a | ||||||
21 | direct result of an Agreement entered into pursuant to this | ||||||
22 | Section. | ||||||
23 | (b) The Department shall notify each Applicant during the | ||||||
24 | application process that their project is eligible for a New | ||||||
25 | Construction EDGE Credit. The Department shall create a |
| |||||||
| |||||||
1 | separate application to be filled out by the Applicant | ||||||
2 | regarding the New Construction EDGE credit. The Application | ||||||
3 | shall include the following: | ||||||
4 | (1) a detailed description of the New Construction EDGE | ||||||
5 | Project that is subject to the New Construction EDGE | ||||||
6 | Agreement, including the location and amount of the | ||||||
7 | investment and jobs created or retained; | ||||||
8 | (2) the duration of the New Construction EDGE Credit | ||||||
9 | and the first taxable year for which the Credit may be | ||||||
10 | claimed; | ||||||
11 | (3) the New Construction EDGE Credit amount that will | ||||||
12 | be allowed for each taxable year; | ||||||
13 | (4) a requirement that the Director is authorized to | ||||||
14 | verify with the appropriate State agencies the amount of | ||||||
15 | the incremental income tax withheld by a Taxpayer, and | ||||||
16 | after doing so, shall issue a certificate to the Taxpayer | ||||||
17 | stating that the amounts have been verified; | ||||||
18 | (5) the amount of the capital investment, which may at | ||||||
19 | no point be less than $10,000,000, the time period of | ||||||
20 | placing the New Construction EDGE Project in service, and | ||||||
21 | the designated location in Illinois for the investment; | ||||||
22 | (6) a requirement that the Taxpayer shall provide | ||||||
23 | written notification to the Director not more than 30 days | ||||||
24 | after the Taxpayer determines that the capital investment | ||||||
25 | of at least $10,000,000 is not or will not be achieved or | ||||||
26 | maintained as set forth in the terms and conditions of the |
| |||||||
| |||||||
1 | Agreement; | ||||||
2 | (7) a detailed provision that the Taxpayer shall be | ||||||
3 | awarded a New Construction EDGE Credit upon the verified | ||||||
4 | completion and occupancy of a New Construction EDGE | ||||||
5 | Project; and | ||||||
6 | (8) any other performance conditions, including the | ||||||
7 | ability to verify that a New Construction EDGE Project is | ||||||
8 | built and completed, or that contract provisions as the | ||||||
9 | Department determines are appropriate. | ||||||
10 | (c) The Department shall post on its website the terms of | ||||||
11 | each New Construction EDGE Agreement entered into under this | ||||||
12 | Act on or after the effective date of this amendatory Act of | ||||||
13 | the 101st General Assembly. Such information shall be posted | ||||||
14 | within 10 days after entering into the Agreement and must | ||||||
15 | include the following: | ||||||
16 | (1) the name of the recipient business; | ||||||
17 | (2) the location of the project; | ||||||
18 | (3) the estimated value of the credit; and | ||||||
19 | (4) whether or not the project is located in an | ||||||
20 | underserved area. | ||||||
21 | (d) The Department, in collaboration with the Department of | ||||||
22 | Labor, shall require that certified payroll reporting, | ||||||
23 | pursuant to Section 5-56 of this Act, be completed in order to | ||||||
24 | verify the wages and any other necessary information which the | ||||||
25 | Department may deem necessary to ascertain and certify the | ||||||
26 | total number of New Construction EDGE Employees subject to a |
| |||||||
| |||||||
1 | New Construction EDGE Agreement and amount of a New | ||||||
2 | Construction EDGE Credit. | ||||||
3 | (e) The total aggregate amount of credits awarded under the | ||||||
4 | Blue Collar Jobs Act (Article 20 of this amendatory Act of the | ||||||
5 | 101st General Assembly) shall not exceed $20,000,000 in any | ||||||
6 | State fiscal year.
| ||||||
7 | (35 ILCS 10/5-56 new) | ||||||
8 | Sec. 5-56. Certified payroll. | ||||||
9 | (a) Each contractor and subcontractor that is engaged in | ||||||
10 | and is executing a New Construction EDGE Project for a | ||||||
11 | Taxpayer, pursuant to a New Construction EDGE Agreement shall: | ||||||
12 | (1) make and keep, for a period of 5 years from the | ||||||
13 | date of the last payment made on or after the effective | ||||||
14 | date of this amendatory Act of the 101st General Assembly | ||||||
15 | on a contract or subcontract for a New Construction EDGE | ||||||
16 | Project pursuant to a New Construction EDGE Agreement, | ||||||
17 | records of all laborers and other workers employed by the | ||||||
18 | contractor or subcontractor on the project; the records | ||||||
19 | shall include: | ||||||
20 | (A) the worker's name; | ||||||
21 | (B) the worker's address; | ||||||
22 | (C) the worker's telephone number, if available; | ||||||
23 | (D) the worker's social security number; | ||||||
24 | (E) the worker's classification or | ||||||
25 | classifications; |
| |||||||
| |||||||
1 | (F) the worker's gross and net wages paid in each | ||||||
2 | pay period; | ||||||
3 | (G) the worker's number of hours worked each day; | ||||||
4 | (H) the worker's starting and ending times of work | ||||||
5 | each day; | ||||||
6 | (I) the worker's hourly wage rate; and | ||||||
7 | (J) the worker's hourly overtime wage rate; and | ||||||
8 | (2) no later than the 15th day of each calendar month, | ||||||
9 | provide a certified payroll for the immediately preceding | ||||||
10 | month to the taxpayer in charge of the project; within 5 | ||||||
11 | business days after receiving the certified payroll, the | ||||||
12 | taxpayer shall file the certified payroll with the | ||||||
13 | Department of Labor and the Department of Commerce and | ||||||
14 | Economic Opportunity; a certified payroll must be filed for | ||||||
15 | only those calendar months during which construction on a | ||||||
16 | New Construction EDGE Project has occurred; the certified | ||||||
17 | payroll shall consist of a complete copy of the records | ||||||
18 | identified in paragraph (1), but may exclude the starting | ||||||
19 | and ending times of work each day; the certified payroll | ||||||
20 | shall be accompanied by a statement signed by the | ||||||
21 | contractor or subcontractor or an officer, employee, or | ||||||
22 | agent of the contractor or subcontractor which avers that: | ||||||
23 | (A) he or she has examined the certified payroll | ||||||
24 | records required to be submitted by the Act and such | ||||||
25 | records are true and accurate; and | ||||||
26 | (B) the contractor or subcontractor is aware that |
| |||||||
| |||||||
1 | filing a certified payroll that he or she knows to be | ||||||
2 | false is a Class A misdemeanor. | ||||||
3 | A general contractor is not prohibited from relying on a | ||||||
4 | certified payroll of a lower-tier subcontractor, provided the | ||||||
5 | general contractor does not knowingly rely upon a | ||||||
6 | subcontractor's false certification. | ||||||
7 | Any contractor or subcontractor subject to this Section, | ||||||
8 | and any officer, employee, or agent of such contractor or | ||||||
9 | subcontractor whose duty as an officer, employee, or agent it | ||||||
10 | is to file a certified payroll under this Section, who | ||||||
11 | willfully fails to file such a certified payroll on or before | ||||||
12 | the date such certified payroll is required to be filed and any | ||||||
13 | person who willfully files a false certified payroll that is | ||||||
14 | false as to any material fact is in violation of this Act and | ||||||
15 | guilty of a Class A misdemeanor. | ||||||
16 | The taxpayer in charge of the project shall keep the | ||||||
17 | records submitted in accordance with this subsection on or | ||||||
18 | after the effective date of this amendatory Act of the 101st | ||||||
19 | General Assembly for a period of 5 years from the date of the | ||||||
20 | last payment for work on a contract or subcontract for the | ||||||
21 | project. | ||||||
22 | The records submitted in accordance with this subsection | ||||||
23 | shall be considered public records, except an employee's | ||||||
24 | address, telephone number, and social security number, and made | ||||||
25 | available in accordance with the Freedom of Information Act. | ||||||
26 | The Department of Labor shall accept any reasonable submissions |
| |||||||
| |||||||
1 | by the contractor that meet the requirements of this subsection | ||||||
2 | and shall share the information with the Department in order to | ||||||
3 | comply with the awarding of New Construction EDGE Credits. A | ||||||
4 | contractor, subcontractor, or public body may retain records | ||||||
5 | required under this Section in paper or electronic format. | ||||||
6 | Upon 7 business days' notice, the contractor and each | ||||||
7 | subcontractor shall make available for inspection and copying | ||||||
8 | at a location within this State during reasonable hours, the | ||||||
9 | records identified in paragraph (1) of this subsection to the | ||||||
10 | taxpayer in charge of the project, its officers and agents, the | ||||||
11 | Director of Labor and his deputies and agents, and to federal, | ||||||
12 | State, or local law enforcement agencies and prosecutors.
| ||||||
13 | Section 20-20. The River Edge Redevelopment Zone Act is | ||||||
14 | amended by changing Section 10-3 and by adding Sections 10-10.3 | ||||||
15 | and 10-10.4 as follows:
| ||||||
16 | (65 ILCS 115/10-3)
| ||||||
17 | Sec. 10-3. Definitions. As used in this Act: | ||||||
18 | "Department" means the Department of Commerce and Economic | ||||||
19 | Opportunity. | ||||||
20 | "River Edge Redevelopment Zone" means an area of the State | ||||||
21 | certified by the Department as a River Edge Redevelopment Zone | ||||||
22 | pursuant to this Act. | ||||||
23 | "Designated zone organization" means an association or | ||||||
24 | entity: (1) the members of which are substantially all |
| |||||||
| |||||||
1 | residents of the River Edge Redevelopment Zone or of the | ||||||
2 | municipality in which the River Edge Redevelopment Zone is | ||||||
3 | located; (2) the board of directors of which is elected by the | ||||||
4 | members of the organization; (3) that satisfies the criteria | ||||||
5 | set forth in Section 501(c) (3) or 501(c) (4) of the Internal | ||||||
6 | Revenue Code; and (4) that exists primarily for the purpose of | ||||||
7 | performing within the zone, for the benefit of the residents | ||||||
8 | and businesses thereof, any of the functions set forth in | ||||||
9 | Section 8 of this Act. | ||||||
10 | "Incremental income tax" means the total amount withheld | ||||||
11 | during the taxable year from the compensation of River Edge | ||||||
12 | Construction Jobs Employees. | ||||||
13 | "Agency" means: each officer, board, commission, and | ||||||
14 | agency created by the Constitution, in the executive branch of | ||||||
15 | State government, other than the State Board of Elections; each | ||||||
16 | officer, department, board, commission, agency, institution, | ||||||
17 | authority, university, and body politic and corporate of the | ||||||
18 | State; each administrative unit or corporate outgrowth of the | ||||||
19 | State government that is created by or pursuant to statute, | ||||||
20 | other than units of local government and their officers, school | ||||||
21 | districts, and boards of election commissioners; and each | ||||||
22 | administrative unit or corporate outgrowth of the above and as | ||||||
23 | may be created by executive order of the Governor. No entity is | ||||||
24 | an "agency" for the purposes of this Act unless the entity is | ||||||
25 | authorized by law to make rules or regulations. | ||||||
26 | "River Edge construction jobs credit" means an amount equal |
| |||||||
| |||||||
1 | to 50% of the incremental income tax attributable to River Edge | ||||||
2 | construction employees employed on a River Edge construction | ||||||
3 | jobs project. However, the amount may equal 75% of the | ||||||
4 | incremental income tax attributable to River Edge construction | ||||||
5 | employees employed on a River Edge construction jobs project | ||||||
6 | located in an underserved area. The total aggregate amount of | ||||||
7 | credits awarded under the Blue Collar Jobs Act (Article 20 of | ||||||
8 | this amendatory Act of the 101st General Assembly) shall not | ||||||
9 | exceed $20,000,000 in any State fiscal year. | ||||||
10 | "River Edge construction jobs employee" means a laborer or | ||||||
11 | worker who is employed by an Illinois contractor or | ||||||
12 | subcontractor in the actual construction work on the site of a | ||||||
13 | River Edge construction jobs project. | ||||||
14 | "River Edge construction jobs project" means building a | ||||||
15 | structure or building, or making improvements of any kind to | ||||||
16 | real property, in a River Edge Redevelopment Zone that is built | ||||||
17 | or improved in the course of completing a qualified | ||||||
18 | rehabilitation plan. "River Edge construction jobs project" | ||||||
19 | does not include the routine operation, routine repair, or | ||||||
20 | routine maintenance of existing structures, buildings, or real | ||||||
21 | property. | ||||||
22 | "Rule" means each agency statement of general | ||||||
23 | applicability that implements, applies, interprets, or | ||||||
24 | prescribes law or policy, but does not include (i) statements | ||||||
25 | concerning only the internal management of an agency and not | ||||||
26 | affecting private rights or procedures available to persons or |
| |||||||
| |||||||
1 | entities outside the agency, (ii) intra-agency memoranda, or | ||||||
2 | (iii) the prescription of standardized forms.
| ||||||
3 | "Underserved area" means a geographic area that meets one | ||||||
4 | or more of the following conditions: | ||||||
5 | (1) the area has a poverty rate of at least 20% | ||||||
6 | according to the latest federal decennial census; | ||||||
7 | (2) 75% or more of the children in the area participate | ||||||
8 | in the federal free lunch program according to reported | ||||||
9 | statistics from the State Board of Education; | ||||||
10 | (3) at least 20% of the households in the area receive | ||||||
11 | assistance under the Supplemental Nutrition Assistance | ||||||
12 | Program (SNAP); or | ||||||
13 | (4) the area has an average unemployment rate, as | ||||||
14 | determined by the Illinois Department of Employment | ||||||
15 | Security, that is more than 120% of the national | ||||||
16 | unemployment average, as determined by the U.S. Department | ||||||
17 | of Labor, for a period of at least 2 consecutive calendar | ||||||
18 | years preceding the date of the application. | ||||||
19 | (Source: P.A. 94-1021, eff. 7-12-06.)
| ||||||
20 | (65 ILCS 115/10-10.3 new) | ||||||
21 | Sec. 10-10.3. River Edge Construction Jobs Credit. | ||||||
22 | (a) Beginning on January 1, 2021, a business entity may | ||||||
23 | receive a tax credit against the tax imposed under subsections | ||||||
24 | (a) and (b) of Section 201 in an amount equal to 50% (or 75% if | ||||||
25 | the project is located in an underserved area) of the amount of |
| |||||||
| |||||||
1 | the incremental income tax attributable to River Edge | ||||||
2 | construction jobs employees employed in the course of | ||||||
3 | completing a River Edge construction jobs project. The credit | ||||||
4 | allowed under this Section shall apply only to taxpayers that | ||||||
5 | make a capital investment of at least $1,000,000 in a qualified | ||||||
6 | rehabilitation plan. | ||||||
7 | (b) A business entity seeking a credit under this Section | ||||||
8 | must submit an application to the Department describing the | ||||||
9 | nature and benefit of the River Edge construction jobs project | ||||||
10 | to the qualified rehabilitation project and the River Edge | ||||||
11 | Redevelopment Zone. The Department may adopt any necessary | ||||||
12 | rules in order to administer the provisions of this Section. | ||||||
13 | (c) Within 45 days after the receipt of an application, the | ||||||
14 | Department shall give notice to the applicant as to whether the | ||||||
15 | application has been approved or disapproved. If the Department | ||||||
16 | disapproves the application, it shall specify the reasons for | ||||||
17 | this decision and allow 60 days for the applicant to amend and | ||||||
18 | resubmit its application. The Department shall provide | ||||||
19 | assistance upon request to applicants. Resubmitted | ||||||
20 | applications shall receive the Department's approval or | ||||||
21 | disapproval within 30 days of resubmission. Those resubmitted | ||||||
22 | applications satisfying initial Department objectives shall be | ||||||
23 | approved unless reasonable circumstances warrant disapproval. | ||||||
24 | (d) On an annual basis, the designated zone organization | ||||||
25 | shall furnish a statement to the Department on the programmatic | ||||||
26 | and financial status of any approved project and an audited |
| |||||||
| |||||||
1 | financial statement of the project. | ||||||
2 | (e) The Department shall certify to the Department of | ||||||
3 | Revenue the identity of the taxpayers who are eligible for | ||||||
4 | River Edge construction jobs credits and the amounts of River | ||||||
5 | Edge construction jobs credits awarded in each taxable year. | ||||||
6 | (f) The Department, in collaboration with the Department of | ||||||
7 | Labor, shall require certified payroll reporting, pursuant to | ||||||
8 | Section 10-10.4 of this Act, be completed in order to verify | ||||||
9 | the wages and any other necessary information which the | ||||||
10 | Department may deem necessary to ascertain and certify the | ||||||
11 | total number of River Edge construction jobs employees and | ||||||
12 | determine the amount of a River Edge construction jobs credit. | ||||||
13 | (g) The total aggregate amount of credits awarded under the | ||||||
14 | Blue Collar Jobs Act (Article 20 of this amendatory Act of the | ||||||
15 | 101st General Assembly) shall not exceed $20,000,000 in any | ||||||
16 | State fiscal year.
| ||||||
17 | (65 ILCS 115/10-10.4 new) | ||||||
18 | Sec. 10-10.4. Certified payroll. | ||||||
19 | (a) Any contractor and each subcontractor who is engaged in | ||||||
20 | and is executing a River Edge construction jobs project for a | ||||||
21 | taxpayer that is entitled to a credit pursuant to Section | ||||||
22 | 10-10.3 of this Act shall: | ||||||
23 | (1) make and keep, for a period of 5 years from the | ||||||
24 | date of the last payment made on or after the effective | ||||||
25 | date of this amendatory Act of the 101st General Assembly |
| |||||||
| |||||||
1 | on a contract or subcontract for a River Edge Construction | ||||||
2 | Jobs Project in a River Edge Redevelopment Zone records of | ||||||
3 | all laborers and other workers employed by them on the | ||||||
4 | project; the records shall include: | ||||||
5 | (A) the worker's name; | ||||||
6 | (B) the worker's address; | ||||||
7 | (C) the worker's telephone number, if available; | ||||||
8 | (D) the worker's social security number; | ||||||
9 | (E) the worker's classification or | ||||||
10 | classifications; | ||||||
11 | (F) the worker's gross and net wages paid in each | ||||||
12 | pay period; | ||||||
13 | (G) the worker's number of hours worked each day; | ||||||
14 | (H) the worker's starting and ending times of work | ||||||
15 | each day; | ||||||
16 | (I) the worker's hourly wage rate; and | ||||||
17 | (J) the worker's hourly overtime wage rate; | ||||||
18 | (2) no later than the 15th day of each calendar month, | ||||||
19 | provide a certified payroll for the immediately preceding | ||||||
20 | month to the taxpayer in charge of the project; within 5 | ||||||
21 | business days after receiving the certified payroll, the | ||||||
22 | taxpayer shall file the certified payroll with the | ||||||
23 | Department of Labor and the Department of Commerce and | ||||||
24 | Economic Opportunity; a certified payroll must be filed for | ||||||
25 | only those calendar months during which construction on a | ||||||
26 | River Edge Construction Jobs Project has occurred; the |
| |||||||
| |||||||
1 | certified payroll shall consist of a complete copy of the | ||||||
2 | records identified in paragraph (1), but may exclude the | ||||||
3 | starting and ending times of work each day; the certified | ||||||
4 | payroll shall be accompanied by a statement signed by the | ||||||
5 | contractor or subcontractor or an officer, employee, or | ||||||
6 | agent of the contractor or subcontractor which avers that: | ||||||
7 | (A) he or she has examined the certified payroll | ||||||
8 | records required to be submitted and such records are | ||||||
9 | true and accurate; and | ||||||
10 | (B) the contractor or subcontractor is aware that | ||||||
11 | filing a certified payroll that he or she knows to be | ||||||
12 | false is a Class A misdemeanor. | ||||||
13 | A general contractor is not prohibited from relying on a | ||||||
14 | certified payroll of a lower-tier subcontractor, provided the | ||||||
15 | general contractor does not knowingly rely upon a | ||||||
16 | subcontractor's false certification. | ||||||
17 | Any contractor or subcontractor subject to this Section, | ||||||
18 | and any officer, employee, or agent of such contractor or | ||||||
19 | subcontractor whose duty as an officer, employee, or agent it | ||||||
20 | is to file a certified payroll under this Section, who | ||||||
21 | willfully fails to file such a certified payroll on or before | ||||||
22 | the date such certified payroll is required to be filed and any | ||||||
23 | person who willfully files a false certified payroll that is | ||||||
24 | false as to any material fact is in violation of this Act and | ||||||
25 | guilty of a Class A misdemeanor. | ||||||
26 | The taxpayer in charge of the project shall keep the |
| |||||||
| |||||||
1 | records submitted in accordance with this Section on or after | ||||||
2 | the effective date of this amendatory Act of the 101st General | ||||||
3 | Assembly for a period of 5 years from the date of the last | ||||||
4 | payment for work on a contract or subcontract for the project. | ||||||
5 | The records submitted in accordance with this subsection | ||||||
6 | shall be considered public records, except an employee's | ||||||
7 | address, telephone number, and social security number, and made | ||||||
8 | available in accordance with the Freedom of Information Act. | ||||||
9 | The Department of Labor shall accept any reasonable submissions | ||||||
10 | by the contractor that meet the requirements of this subsection | ||||||
11 | and shall share the information with the Department in order to | ||||||
12 | comply with the awarding of River Edge construction jobs | ||||||
13 | credits. A contractor, subcontractor, or public body may retain | ||||||
14 | records required under this Section in paper or electronic | ||||||
15 | format. | ||||||
16 | Upon 7 business days' notice, the contractor and each | ||||||
17 | subcontractor shall make available for inspection and copying | ||||||
18 | at a location within this State during reasonable hours, the | ||||||
19 | records identified in paragraph (1) of this subsection to the | ||||||
20 | taxpayer in charge of the project, its officers and agents, the | ||||||
21 | Director of Labor and his deputies and agents, and to federal, | ||||||
22 | State, or local law enforcement agencies and prosecutors.
| ||||||
23 | ARTICLE 25. MANUFACTURING MACHINERY AND EQUIPMENT | ||||||
24 | Section 25-5. The Use Tax Act is amended by changing |
| |||||||
| |||||||
1 | Sections 3-5 and 3-50 as follows:
| ||||||
2 | (35 ILCS 105/3-5)
| ||||||
3 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
4 | personal property is exempt from the tax imposed by this Act:
| ||||||
5 | (1) Personal property purchased from a corporation, | ||||||
6 | society, association,
foundation, institution, or | ||||||
7 | organization, other than a limited liability
company, that is | ||||||
8 | organized and operated as a not-for-profit service enterprise
| ||||||
9 | for the benefit of persons 65 years of age or older if the | ||||||
10 | personal property was not purchased by the enterprise for the | ||||||
11 | purpose of resale by the
enterprise.
| ||||||
12 | (2) Personal property purchased by a not-for-profit | ||||||
13 | Illinois county
fair association for use in conducting, | ||||||
14 | operating, or promoting the
county fair.
| ||||||
15 | (3) Personal property purchased by a not-for-profit
arts or | ||||||
16 | cultural organization that establishes, by proof required by | ||||||
17 | the
Department by
rule, that it has received an exemption under | ||||||
18 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
19 | organized and operated primarily for the
presentation
or | ||||||
20 | support of arts or cultural programming, activities, or | ||||||
21 | services. These
organizations include, but are not limited to, | ||||||
22 | music and dramatic arts
organizations such as symphony | ||||||
23 | orchestras and theatrical groups, arts and
cultural service | ||||||
24 | organizations, local arts councils, visual arts organizations,
| ||||||
25 | and media arts organizations.
On and after July 1, 2001 (the |
| |||||||
| |||||||
1 | effective date of Public Act 92-35), however, an entity | ||||||
2 | otherwise eligible for this exemption shall not
make tax-free | ||||||
3 | purchases unless it has an active identification number issued | ||||||
4 | by
the Department.
| ||||||
5 | (4) Personal property purchased by a governmental body, by | ||||||
6 | a
corporation, society, association, foundation, or | ||||||
7 | institution organized and
operated exclusively for charitable, | ||||||
8 | religious, or educational purposes, or
by a not-for-profit | ||||||
9 | corporation, society, association, foundation,
institution, or | ||||||
10 | organization that has no compensated officers or employees
and | ||||||
11 | that is organized and operated primarily for the recreation of | ||||||
12 | persons
55 years of age or older. A limited liability company | ||||||
13 | may qualify for the
exemption under this paragraph only if the | ||||||
14 | limited liability company is
organized and operated | ||||||
15 | exclusively for educational purposes. On and after July
1, | ||||||
16 | 1987, however, no entity otherwise eligible for this exemption | ||||||
17 | shall make
tax-free purchases unless it has an active exemption | ||||||
18 | identification number
issued by the Department.
| ||||||
19 | (5) Until July 1, 2003, a passenger car that is a | ||||||
20 | replacement vehicle to
the extent that the
purchase price of | ||||||
21 | the car is subject to the Replacement Vehicle Tax.
| ||||||
22 | (6) Until July 1, 2003 and beginning again on September 1, | ||||||
23 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
24 | equipment, including
repair and replacement
parts, both new and | ||||||
25 | used, and including that manufactured on special order,
| ||||||
26 | certified by the purchaser to be used primarily for graphic |
| |||||||
| |||||||
1 | arts production,
and including machinery and equipment | ||||||
2 | purchased for lease.
Equipment includes chemicals or chemicals | ||||||
3 | acting as catalysts but only if
the
chemicals or chemicals | ||||||
4 | acting as catalysts effect a direct and immediate change
upon a | ||||||
5 | graphic arts product. Beginning on July 1, 2017, graphic arts | ||||||
6 | machinery and equipment is included in the manufacturing and | ||||||
7 | assembling machinery and equipment exemption under paragraph | ||||||
8 | (18).
| ||||||
9 | (7) Farm chemicals.
| ||||||
10 | (8) Legal tender, currency, medallions, or gold or silver | ||||||
11 | coinage issued by
the State of Illinois, the government of the | ||||||
12 | United States of America, or the
government of any foreign | ||||||
13 | country, and bullion.
| ||||||
14 | (9) Personal property purchased from a teacher-sponsored | ||||||
15 | student
organization affiliated with an elementary or | ||||||
16 | secondary school located in
Illinois.
| ||||||
17 | (10) A motor vehicle that is used for automobile renting, | ||||||
18 | as defined in the
Automobile Renting Occupation and Use Tax | ||||||
19 | Act.
| ||||||
20 | (11) Farm machinery and equipment, both new and used,
| ||||||
21 | including that manufactured on special order, certified by the | ||||||
22 | purchaser
to be used primarily for production agriculture or | ||||||
23 | State or federal
agricultural programs, including individual | ||||||
24 | replacement parts for
the machinery and equipment, including | ||||||
25 | machinery and equipment
purchased
for lease,
and including | ||||||
26 | implements of husbandry defined in Section 1-130 of
the |
| |||||||
| |||||||
1 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
2 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
3 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
4 | but excluding other motor
vehicles required to be
registered | ||||||
5 | under the Illinois Vehicle Code.
Horticultural polyhouses or | ||||||
6 | hoop houses used for propagating, growing, or
overwintering | ||||||
7 | plants shall be considered farm machinery and equipment under
| ||||||
8 | this item (11).
Agricultural chemical tender tanks and dry | ||||||
9 | boxes shall include units sold
separately from a motor vehicle | ||||||
10 | required to be licensed and units sold mounted
on a motor | ||||||
11 | vehicle required to be licensed if the selling price of the | ||||||
12 | tender
is separately stated.
| ||||||
13 | Farm machinery and equipment shall include precision | ||||||
14 | farming equipment
that is
installed or purchased to be | ||||||
15 | installed on farm machinery and equipment
including, but not | ||||||
16 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
17 | or spreaders.
Precision farming equipment includes, but is not | ||||||
18 | limited to, soil testing
sensors, computers, monitors, | ||||||
19 | software, global positioning
and mapping systems, and other | ||||||
20 | such equipment.
| ||||||
21 | Farm machinery and equipment also includes computers, | ||||||
22 | sensors, software, and
related equipment used primarily in the
| ||||||
23 | computer-assisted operation of production agriculture | ||||||
24 | facilities, equipment,
and
activities such as, but not limited | ||||||
25 | to,
the collection, monitoring, and correlation of
animal and | ||||||
26 | crop data for the purpose of
formulating animal diets and |
| |||||||
| |||||||
1 | agricultural chemicals. This item (11) is exempt
from the | ||||||
2 | provisions of
Section 3-90.
| ||||||
3 | (12) Until June 30, 2013, fuel and petroleum products sold | ||||||
4 | to or used by an air common
carrier, certified by the carrier | ||||||
5 | to be used for consumption, shipment, or
storage in the conduct | ||||||
6 | of its business as an air common carrier, for a
flight destined | ||||||
7 | for or returning from a location or locations
outside the | ||||||
8 | United States without regard to previous or subsequent domestic
| ||||||
9 | stopovers.
| ||||||
10 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
11 | or used by an air carrier, certified by the carrier to be used | ||||||
12 | for consumption, shipment, or storage in the conduct of its | ||||||
13 | business as an air common carrier, for a flight that (i) is | ||||||
14 | engaged in foreign trade or is engaged in trade between the | ||||||
15 | United States and any of its possessions and (ii) transports at | ||||||
16 | least one individual or package for hire from the city of | ||||||
17 | origination to the city of final destination on the same | ||||||
18 | aircraft, without regard to a change in the flight number of | ||||||
19 | that aircraft. | ||||||
20 | (13) Proceeds of mandatory service charges separately
| ||||||
21 | stated on customers' bills for the purchase and consumption of | ||||||
22 | food and
beverages purchased at retail from a retailer, to the | ||||||
23 | extent that the proceeds
of the service charge are in fact | ||||||
24 | turned over as tips or as a substitute
for tips to the | ||||||
25 | employees who participate directly in preparing, serving,
| ||||||
26 | hosting or cleaning up the food or beverage function with |
| |||||||
| |||||||
1 | respect to which
the service charge is imposed.
| ||||||
2 | (14) Until July 1, 2003, oil field exploration, drilling, | ||||||
3 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
4 | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | ||||||
5 | tubular goods,
including casing and drill strings, (iii) pumps | ||||||
6 | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | ||||||
7 | individual replacement part for oil
field exploration, | ||||||
8 | drilling, and production equipment, and (vi) machinery and
| ||||||
9 | equipment purchased
for lease; but excluding motor vehicles | ||||||
10 | required to be registered under the
Illinois Vehicle Code.
| ||||||
11 | (15) Photoprocessing machinery and equipment, including | ||||||
12 | repair and
replacement parts, both new and used, including that
| ||||||
13 | manufactured on special order, certified by the purchaser to be | ||||||
14 | used
primarily for photoprocessing, and including
| ||||||
15 | photoprocessing machinery and equipment purchased for lease.
| ||||||
16 | (16) Until July 1, 2023, coal and aggregate exploration, | ||||||
17 | mining, off-highway hauling,
processing, maintenance, and | ||||||
18 | reclamation equipment,
including replacement parts and | ||||||
19 | equipment, and
including equipment purchased for lease, but | ||||||
20 | excluding motor
vehicles required to be registered under the | ||||||
21 | Illinois Vehicle Code. The changes made to this Section by | ||||||
22 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
23 | for credit or refund is allowed on or after August 16, 2013 | ||||||
24 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
25 | during the period beginning July 1, 2003 and ending on August | ||||||
26 | 16, 2013 (the effective date of Public Act 98-456).
|
| |||||||
| |||||||
1 | (17) Until July 1, 2003, distillation machinery and | ||||||
2 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
3 | retailer, certified by the user to be used
only for the | ||||||
4 | production of ethyl alcohol that will be used for consumption
| ||||||
5 | as motor fuel or as a component of motor fuel for the personal | ||||||
6 | use of the
user, and not subject to sale or resale.
| ||||||
7 | (18) Manufacturing and assembling machinery and equipment | ||||||
8 | used
primarily in the process of manufacturing or assembling | ||||||
9 | tangible
personal property for wholesale or retail sale or | ||||||
10 | lease, whether that sale
or lease is made directly by the | ||||||
11 | manufacturer or by some other person,
whether the materials | ||||||
12 | used in the process are
owned by the manufacturer or some other | ||||||
13 | person, or whether that sale or
lease is made apart from or as | ||||||
14 | an incident to the seller's engaging in
the service occupation | ||||||
15 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
16 | other similar items of no commercial value on
special order for | ||||||
17 | a particular purchaser. The exemption provided by this | ||||||
18 | paragraph (18) includes production related tangible personal | ||||||
19 | property, as defined in Section 3-50, purchased on or after | ||||||
20 | July 1, 2019. The exemption provided by this paragraph (18) | ||||||
21 | does not include machinery and equipment used in (i) the | ||||||
22 | generation of electricity for wholesale or retail sale; (ii) | ||||||
23 | the generation or treatment of natural or artificial gas for | ||||||
24 | wholesale or retail sale that is delivered to customers through | ||||||
25 | pipes, pipelines, or mains; or (iii) the treatment of water for | ||||||
26 | wholesale or retail sale that is delivered to customers through |
| |||||||
| |||||||
1 | pipes, pipelines, or mains. The provisions of Public Act 98-583 | ||||||
2 | are declaratory of existing law as to the meaning and scope of | ||||||
3 | this exemption. Beginning on July 1, 2017, the exemption | ||||||
4 | provided by this paragraph (18) includes, but is not limited | ||||||
5 | to, graphic arts machinery and equipment, as defined in | ||||||
6 | paragraph (6) of this Section.
| ||||||
7 | (19) Personal property delivered to a purchaser or | ||||||
8 | purchaser's donee
inside Illinois when the purchase order for | ||||||
9 | that personal property was
received by a florist located | ||||||
10 | outside Illinois who has a florist located
inside Illinois | ||||||
11 | deliver the personal property.
| ||||||
12 | (20) Semen used for artificial insemination of livestock | ||||||
13 | for direct
agricultural production.
| ||||||
14 | (21) Horses, or interests in horses, registered with and | ||||||
15 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
16 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
17 | Horse Association, United States
Trotting Association, or | ||||||
18 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
19 | racing for prizes. This item (21) is exempt from the provisions | ||||||
20 | of Section 3-90, and the exemption provided for under this item | ||||||
21 | (21) applies for all periods beginning May 30, 1995, but no | ||||||
22 | claim for credit or refund is allowed on or after January 1, | ||||||
23 | 2008
for such taxes paid during the period beginning May 30, | ||||||
24 | 2000 and ending on January 1, 2008.
| ||||||
25 | (22) Computers and communications equipment utilized for | ||||||
26 | any
hospital
purpose
and equipment used in the diagnosis,
|
| |||||||
| |||||||
1 | analysis, or treatment of hospital patients purchased by a | ||||||
2 | lessor who leases
the
equipment, under a lease of one year or | ||||||
3 | longer executed or in effect at the
time the lessor would | ||||||
4 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
5 | hospital
that has been issued an active tax exemption | ||||||
6 | identification number by
the
Department under Section 1g of the | ||||||
7 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
8 | manner that does not qualify for
this exemption or is used in | ||||||
9 | any other non-exempt manner, the lessor
shall be liable for the
| ||||||
10 | tax imposed under this Act or the Service Use Tax Act, as the | ||||||
11 | case may
be, based on the fair market value of the property at | ||||||
12 | the time the
non-qualifying use occurs. No lessor shall collect | ||||||
13 | or attempt to collect an
amount (however
designated) that | ||||||
14 | purports to reimburse that lessor for the tax imposed by this
| ||||||
15 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
16 | has not been
paid by the lessor. If a lessor improperly | ||||||
17 | collects any such amount from the
lessee, the lessee shall have | ||||||
18 | a legal right to claim a refund of that amount
from the lessor. | ||||||
19 | If, however, that amount is not refunded to the lessee for
any | ||||||
20 | reason, the lessor is liable to pay that amount to the | ||||||
21 | Department.
| ||||||
22 | (23) Personal property purchased by a lessor who leases the
| ||||||
23 | property, under
a
lease of
one year or longer executed or in | ||||||
24 | effect at the time
the lessor would otherwise be subject to the | ||||||
25 | tax imposed by this Act,
to a governmental body
that has been | ||||||
26 | issued an active sales tax exemption identification number by |
| |||||||
| |||||||
1 | the
Department under Section 1g of the Retailers' Occupation | ||||||
2 | Tax Act.
If the
property is leased in a manner that does not | ||||||
3 | qualify for
this exemption
or used in any other non-exempt | ||||||
4 | manner, the lessor shall be liable for the
tax imposed under | ||||||
5 | this Act or the Service Use Tax Act, as the case may
be, based | ||||||
6 | on the fair market value of the property at the time the
| ||||||
7 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
8 | to collect an
amount (however
designated) that purports to | ||||||
9 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
10 | Service Use Tax Act, as the case may be, if the tax has not been
| ||||||
11 | paid by the lessor. If a lessor improperly collects any such | ||||||
12 | amount from the
lessee, the lessee shall have a legal right to | ||||||
13 | claim a refund of that amount
from the lessor. If, however, | ||||||
14 | that amount is not refunded to the lessee for
any reason, the | ||||||
15 | lessor is liable to pay that amount to the Department.
| ||||||
16 | (24) Beginning with taxable years ending on or after | ||||||
17 | December
31, 1995
and
ending with taxable years ending on or | ||||||
18 | before December 31, 2004,
personal property that is
donated for | ||||||
19 | disaster relief to be used in a State or federally declared
| ||||||
20 | disaster area in Illinois or bordering Illinois by a | ||||||
21 | manufacturer or retailer
that is registered in this State to a | ||||||
22 | corporation, society, association,
foundation, or institution | ||||||
23 | that has been issued a sales tax exemption
identification | ||||||
24 | number by the Department that assists victims of the disaster
| ||||||
25 | who reside within the declared disaster area.
| ||||||
26 | (25) Beginning with taxable years ending on or after |
| |||||||
| |||||||
1 | December
31, 1995 and
ending with taxable years ending on or | ||||||
2 | before December 31, 2004, personal
property that is used in the | ||||||
3 | performance of infrastructure repairs in this
State, including | ||||||
4 | but not limited to municipal roads and streets, access roads,
| ||||||
5 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
6 | line extensions,
water distribution and purification | ||||||
7 | facilities, storm water drainage and
retention facilities, and | ||||||
8 | sewage treatment facilities, resulting from a State
or | ||||||
9 | federally declared disaster in Illinois or bordering Illinois | ||||||
10 | when such
repairs are initiated on facilities located in the | ||||||
11 | declared disaster area
within 6 months after the disaster.
| ||||||
12 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
13 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
14 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
15 | provisions
of
Section 3-90.
| ||||||
16 | (27) A motor vehicle, as that term is defined in Section | ||||||
17 | 1-146
of the
Illinois
Vehicle Code, that is donated to a | ||||||
18 | corporation, limited liability company,
society, association, | ||||||
19 | foundation, or institution that is determined by the
Department | ||||||
20 | to be organized and operated exclusively for educational | ||||||
21 | purposes.
For purposes of this exemption, "a corporation, | ||||||
22 | limited liability company,
society, association, foundation, | ||||||
23 | or institution organized and operated
exclusively for | ||||||
24 | educational purposes" means all tax-supported public schools,
| ||||||
25 | private schools that offer systematic instruction in useful | ||||||
26 | branches of
learning by methods common to public schools and |
| |||||||
| |||||||
1 | that compare favorably in
their scope and intensity with the | ||||||
2 | course of study presented in tax-supported
schools, and | ||||||
3 | vocational or technical schools or institutes organized and
| ||||||
4 | operated exclusively to provide a course of study of not less | ||||||
5 | than 6 weeks
duration and designed to prepare individuals to | ||||||
6 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
7 | industrial, business, or commercial
occupation.
| ||||||
8 | (28) Beginning January 1, 2000, personal property, | ||||||
9 | including
food,
purchased through fundraising
events for the | ||||||
10 | benefit of
a public or private elementary or
secondary school, | ||||||
11 | a group of those schools, or one or more school
districts if | ||||||
12 | the events are
sponsored by an entity recognized by the school | ||||||
13 | district that consists
primarily of volunteers and includes
| ||||||
14 | parents and teachers of the school children. This paragraph | ||||||
15 | does not apply
to fundraising
events (i) for the benefit of | ||||||
16 | private home instruction or (ii)
for which the fundraising | ||||||
17 | entity purchases the personal property sold at
the events from | ||||||
18 | another individual or entity that sold the property for the
| ||||||
19 | purpose of resale by the fundraising entity and that
profits | ||||||
20 | from the sale to the
fundraising entity. This paragraph is | ||||||
21 | exempt
from the provisions
of Section 3-90.
| ||||||
22 | (29) Beginning January 1, 2000 and through December 31, | ||||||
23 | 2001, new or
used automatic vending
machines that prepare and | ||||||
24 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
25 | items, and replacement parts for these machines.
Beginning | ||||||
26 | January 1,
2002 and through June 30, 2003, machines and parts |
| |||||||
| |||||||
1 | for machines used in
commercial, coin-operated amusement and | ||||||
2 | vending business if a use or occupation
tax is paid on the | ||||||
3 | gross receipts derived from the use of the commercial,
| ||||||
4 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
5 | is exempt from the provisions of Section 3-90.
| ||||||
6 | (30) Beginning January 1, 2001 and through June 30, 2016, | ||||||
7 | food for human consumption that is to be consumed off the | ||||||
8 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
9 | drinks, and food that
has been prepared for immediate | ||||||
10 | consumption) and prescription and
nonprescription medicines, | ||||||
11 | drugs, medical appliances, and insulin, urine
testing | ||||||
12 | materials, syringes, and needles used by diabetics, for human | ||||||
13 | use, when
purchased for use by a person receiving medical | ||||||
14 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
15 | resides in a licensed long-term care facility,
as defined in | ||||||
16 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
17 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
18 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
19 | (31) Beginning on August 2, 2001 (the effective date of | ||||||
20 | Public Act 92-227),
computers and communications equipment
| ||||||
21 | utilized for any hospital purpose and equipment used in the | ||||||
22 | diagnosis,
analysis, or treatment of hospital patients | ||||||
23 | purchased by a lessor who leases
the equipment, under a lease | ||||||
24 | of one year or longer executed or in effect at the
time the | ||||||
25 | lessor would otherwise be subject to the tax imposed by this | ||||||
26 | Act, to a
hospital that has been issued an active tax exemption |
| |||||||
| |||||||
1 | identification number by
the Department under Section 1g of the | ||||||
2 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
3 | manner that does not qualify for this exemption or is
used in | ||||||
4 | any other nonexempt manner, the lessor shall be liable for the | ||||||
5 | tax
imposed under this Act or the Service Use Tax Act, as the | ||||||
6 | case may be, based on
the fair market value of the property at | ||||||
7 | the time the nonqualifying use
occurs. No lessor shall collect | ||||||
8 | or attempt to collect an amount (however
designated) that | ||||||
9 | purports to reimburse that lessor for the tax imposed by this
| ||||||
10 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
11 | has not been
paid by the lessor. If a lessor improperly | ||||||
12 | collects any such amount from the
lessee, the lessee shall have | ||||||
13 | a legal right to claim a refund of that amount
from the lessor. | ||||||
14 | If, however, that amount is not refunded to the lessee for
any | ||||||
15 | reason, the lessor is liable to pay that amount to the | ||||||
16 | Department.
This paragraph is exempt from the provisions of | ||||||
17 | Section 3-90.
| ||||||
18 | (32) Beginning on August 2, 2001 (the effective date of | ||||||
19 | Public Act 92-227),
personal property purchased by a lessor who | ||||||
20 | leases the property,
under a lease of one year or longer | ||||||
21 | executed or in effect at the time the
lessor would otherwise be | ||||||
22 | subject to the tax imposed by this Act, to a
governmental body | ||||||
23 | that has been issued an active sales tax exemption
| ||||||
24 | identification number by the Department under Section 1g of the | ||||||
25 | Retailers'
Occupation Tax Act. If the property is leased in a | ||||||
26 | manner that does not
qualify for this exemption or used in any |
| |||||||
| |||||||
1 | other nonexempt manner, the lessor
shall be liable for the tax | ||||||
2 | imposed under this Act or the Service Use Tax Act,
as the case | ||||||
3 | may be, based on the fair market value of the property at the | ||||||
4 | time
the nonqualifying use occurs. No lessor shall collect or | ||||||
5 | attempt to collect
an amount (however designated) that purports | ||||||
6 | to reimburse that lessor for the
tax imposed by this Act or the | ||||||
7 | Service Use Tax Act, as the case may be, if the
tax has not been | ||||||
8 | paid by the lessor. If a lessor improperly collects any such
| ||||||
9 | amount from the lessee, the lessee shall have a legal right to | ||||||
10 | claim a refund
of that amount from the lessor. If, however, | ||||||
11 | that amount is not refunded to
the lessee for any reason, the | ||||||
12 | lessor is liable to pay that amount to the
Department. This | ||||||
13 | paragraph is exempt from the provisions of Section 3-90.
| ||||||
14 | (33) On and after July 1, 2003 and through June 30, 2004, | ||||||
15 | the use in this State of motor vehicles of
the second division | ||||||
16 | with a gross vehicle weight in excess of 8,000 pounds and
that | ||||||
17 | are subject to the commercial distribution fee imposed under | ||||||
18 | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | ||||||
19 | 1, 2004 and through June 30, 2005, the use in this State of | ||||||
20 | motor vehicles of the second division: (i) with a gross vehicle | ||||||
21 | weight rating in excess of 8,000 pounds; (ii) that are subject | ||||||
22 | to the commercial distribution fee imposed under Section | ||||||
23 | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | ||||||
24 | primarily used for commercial purposes. Through June 30, 2005, | ||||||
25 | this exemption applies to repair and
replacement parts added | ||||||
26 | after the initial purchase of such a motor vehicle if
that |
| |||||||
| |||||||
1 | motor
vehicle is used in a manner that would qualify for the | ||||||
2 | rolling stock exemption
otherwise provided for in this Act. For | ||||||
3 | purposes of this paragraph, the term "used for commercial | ||||||
4 | purposes" means the transportation of persons or property in | ||||||
5 | furtherance of any commercial or industrial enterprise, | ||||||
6 | whether for-hire or not.
| ||||||
7 | (34) Beginning January 1, 2008, tangible personal property | ||||||
8 | used in the construction or maintenance of a community water | ||||||
9 | supply, as defined under Section 3.145 of the Environmental | ||||||
10 | Protection Act, that is operated by a not-for-profit | ||||||
11 | corporation that holds a valid water supply permit issued under | ||||||
12 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
13 | exempt from the provisions of Section 3-90. | ||||||
14 | (35) Beginning January 1, 2010, materials, parts, | ||||||
15 | equipment, components, and furnishings incorporated into or | ||||||
16 | upon an aircraft as part of the modification, refurbishment, | ||||||
17 | completion, replacement, repair, or maintenance of the | ||||||
18 | aircraft. This exemption includes consumable supplies used in | ||||||
19 | the modification, refurbishment, completion, replacement, | ||||||
20 | repair, and maintenance of aircraft, but excludes any | ||||||
21 | materials, parts, equipment, components, and consumable | ||||||
22 | supplies used in the modification, replacement, repair, and | ||||||
23 | maintenance of aircraft engines or power plants, whether such | ||||||
24 | engines or power plants are installed or uninstalled upon any | ||||||
25 | such aircraft. "Consumable supplies" include, but are not | ||||||
26 | limited to, adhesive, tape, sandpaper, general purpose |
| |||||||
| |||||||
1 | lubricants, cleaning solution, latex gloves, and protective | ||||||
2 | films. This exemption applies only to the use of qualifying | ||||||
3 | tangible personal property by persons who modify, refurbish, | ||||||
4 | complete, repair, replace, or maintain aircraft and who (i) | ||||||
5 | hold an Air Agency Certificate and are empowered to operate an | ||||||
6 | approved repair station by the Federal Aviation | ||||||
7 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
8 | operations in accordance with Part 145 of the Federal Aviation | ||||||
9 | Regulations. The exemption does not include aircraft operated | ||||||
10 | by a commercial air carrier providing scheduled passenger air | ||||||
11 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
12 | of the Federal Aviation Regulations. The changes made to this | ||||||
13 | paragraph (35) by Public Act 98-534 are declarative of existing | ||||||
14 | law. | ||||||
15 | (36) Tangible personal property purchased by a | ||||||
16 | public-facilities corporation, as described in Section | ||||||
17 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
18 | constructing or furnishing a municipal convention hall, but | ||||||
19 | only if the legal title to the municipal convention hall is | ||||||
20 | transferred to the municipality without any further | ||||||
21 | consideration by or on behalf of the municipality at the time | ||||||
22 | of the completion of the municipal convention hall or upon the | ||||||
23 | retirement or redemption of any bonds or other debt instruments | ||||||
24 | issued by the public-facilities corporation in connection with | ||||||
25 | the development of the municipal convention hall. This | ||||||
26 | exemption includes existing public-facilities corporations as |
| |||||||
| |||||||
1 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
2 | This paragraph is exempt from the provisions of Section 3-90. | ||||||
3 | (37) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
4 | and menstrual cups. | ||||||
5 | (38) Merchandise that is subject to the Rental Purchase | ||||||
6 | Agreement Occupation and Use Tax. The purchaser must certify | ||||||
7 | that the item is purchased to be rented subject to a rental | ||||||
8 | purchase agreement, as defined in the Rental Purchase Agreement | ||||||
9 | Act, and provide proof of registration under the Rental | ||||||
10 | Purchase Agreement Occupation and Use Tax Act. This paragraph | ||||||
11 | is exempt from the provisions of Section 3-90. | ||||||
12 | (39) Tangible personal property purchased by a purchaser | ||||||
13 | who is exempt from the tax imposed by this Act by operation of | ||||||
14 | federal law. This paragraph is exempt from the provisions of | ||||||
15 | Section 3-90. | ||||||
16 | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | ||||||
17 | 100-22, eff. 7-6-17; 100-437, eff. 1-1-18; 100-594, eff. | ||||||
18 | 6-29-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; revised | ||||||
19 | 1-8-19.)
| ||||||
20 | (35 ILCS 105/3-50) (from Ch. 120, par. 439.3-50)
| ||||||
21 | Sec. 3-50. Manufacturing and assembly exemption. The | ||||||
22 | manufacturing
and assembling machinery and equipment exemption | ||||||
23 | includes
machinery and equipment that replaces machinery and | ||||||
24 | equipment in an
existing manufacturing facility as well as | ||||||
25 | machinery and equipment that
are for use in an expanded or new |
| |||||||
| |||||||
1 | manufacturing facility. The machinery and
equipment exemption | ||||||
2 | also includes machinery and equipment used in the
general | ||||||
3 | maintenance or repair of exempt machinery and equipment or for
| ||||||
4 | in-house manufacture of exempt machinery and equipment. | ||||||
5 | Beginning on July 1, 2017, the manufacturing and assembling | ||||||
6 | machinery and equipment exemption also includes graphic arts | ||||||
7 | machinery and equipment, as defined in paragraph (6) of Section | ||||||
8 | 3-5. The machinery and equipment exemption does not include | ||||||
9 | machinery and equipment used in (i) the generation of | ||||||
10 | electricity for wholesale or retail sale; (ii) the generation | ||||||
11 | or treatment of natural or artificial gas for wholesale or | ||||||
12 | retail sale that is delivered to customers through pipes, | ||||||
13 | pipelines, or mains; or (iii) the treatment of water for | ||||||
14 | wholesale or retail sale that is delivered to customers through | ||||||
15 | pipes, pipelines, or mains. The provisions of this amendatory | ||||||
16 | Act of the 98th General Assembly are declaratory of existing | ||||||
17 | law as to the meaning and scope of this exemption. For the
| ||||||
18 | purposes of this exemption, terms have the following
meanings:
| ||||||
19 | (1) "Manufacturing process" means the production of
an | ||||||
20 | article of tangible personal property, whether the article
| ||||||
21 | is a finished product or an article for use in the process | ||||||
22 | of manufacturing
or assembling a different article of | ||||||
23 | tangible personal property, by
a procedure commonly | ||||||
24 | regarded as manufacturing, processing, fabricating, or
| ||||||
25 | refining that changes some existing material into a | ||||||
26 | material
with a different form, use, or name. In relation |
| |||||||
| |||||||
1 | to a recognized integrated
business composed of a series of | ||||||
2 | operations that collectively constitute
manufacturing, or | ||||||
3 | individually constitute
manufacturing operations, the | ||||||
4 | manufacturing process commences with the
first operation | ||||||
5 | or stage of production in the series
and does not end until | ||||||
6 | the completion of the final product
in the last operation | ||||||
7 | or stage of production in the series. For purposes
of this | ||||||
8 | exemption, photoprocessing is a
manufacturing process of | ||||||
9 | tangible personal property for wholesale or retail
sale.
| ||||||
10 | (2) "Assembling process" means the production of
an | ||||||
11 | article of tangible personal property, whether the article
| ||||||
12 | is a finished product or an article for use in the process | ||||||
13 | of manufacturing
or assembling a different article of | ||||||
14 | tangible personal property, by the
combination of existing | ||||||
15 | materials in a manner commonly regarded as
assembling that | ||||||
16 | results in an article or material of a different
form, use, | ||||||
17 | or name.
| ||||||
18 | (3) "Machinery" means major
mechanical machines or | ||||||
19 | major components of those machines contributing to a
| ||||||
20 | manufacturing or assembling process.
| ||||||
21 | (4) "Equipment" includes an independent device
or tool | ||||||
22 | separate from machinery but essential to an integrated
| ||||||
23 | manufacturing or assembly process; including computers | ||||||
24 | used primarily in
a manufacturer's computer assisted | ||||||
25 | design,
computer assisted manufacturing (CAD/CAM) system; | ||||||
26 | any
subunit or assembly comprising a component of any |
| |||||||
| |||||||
1 | machinery or auxiliary,
adjunct, or attachment parts of | ||||||
2 | machinery, such as tools, dies, jigs,
fixtures, patterns, | ||||||
3 | and molds; and any parts that require
periodic replacement | ||||||
4 | in the course of normal operation; but does not
include | ||||||
5 | hand tools. Equipment includes chemicals or chemicals | ||||||
6 | acting as
catalysts but only if
the chemicals or chemicals | ||||||
7 | acting as catalysts effect a direct and
immediate change | ||||||
8 | upon a
product being manufactured or assembled for | ||||||
9 | wholesale or retail sale or
lease. | ||||||
10 | (5) "Production related tangible personal property" | ||||||
11 | means all tangible personal property that is used or | ||||||
12 | consumed by the purchaser in a manufacturing facility in | ||||||
13 | which a manufacturing process takes place and includes, | ||||||
14 | without limitation, tangible personal property that is | ||||||
15 | purchased for incorporation into real estate within a | ||||||
16 | manufacturing facility , supplies and consumables used in a | ||||||
17 | manufacturing facility including fuels, coolants, | ||||||
18 | solvents, oils, lubricants, and adhesives, hand tools, | ||||||
19 | protective apparel, and fire and safety equipment used or | ||||||
20 | consumed within a manufacturing facility, and tangible | ||||||
21 | personal property that is used or consumed in activities | ||||||
22 | such as research and development, preproduction material | ||||||
23 | handling, receiving, quality control, inventory control, | ||||||
24 | storage, staging, and packaging for shipping and | ||||||
25 | transportation purposes. "Production related tangible | ||||||
26 | personal property" does not include (i) tangible personal |
| |||||||
| |||||||
1 | property that is used, within or without a manufacturing | ||||||
2 | facility, in sales, purchasing, accounting, fiscal | ||||||
3 | management, marketing, personnel recruitment or selection, | ||||||
4 | or landscaping or (ii) tangible personal property that is | ||||||
5 | required to be titled or registered with a department, | ||||||
6 | agency, or unit of federal, State, or local government.
| ||||||
7 | The manufacturing and assembling machinery and equipment | ||||||
8 | exemption includes production related tangible personal | ||||||
9 | property that is purchased on or after July 1, 2007 and on or | ||||||
10 | before June 30, 2008 and on or after July 1, 2019 . The | ||||||
11 | exemption for production related tangible personal property | ||||||
12 | purchased on or after July 1, 2007 and on or before June 30, | ||||||
13 | 2008 is subject to both of the following limitations: | ||||||
14 | (1) The maximum amount of the exemption for any one | ||||||
15 | taxpayer may not exceed 5% of the purchase price of | ||||||
16 | production related tangible personal property that is | ||||||
17 | purchased on or after July 1, 2007 and on or before June | ||||||
18 | 30, 2008. A credit under Section 3-85 of this Act may not | ||||||
19 | be earned by the purchase of production related tangible | ||||||
20 | personal property for which an exemption is received under | ||||||
21 | this Section. | ||||||
22 | (2) The maximum aggregate amount of the exemptions for | ||||||
23 | production related tangible personal property purchased on | ||||||
24 | or after July 1, 2007 and on or before June 30, 2008 | ||||||
25 | awarded under this Act and the Retailers' Occupation Tax | ||||||
26 | Act to all taxpayers may not exceed $10,000,000. If the |
| |||||||
| |||||||
1 | claims for the exemption exceed $10,000,000, then the | ||||||
2 | Department shall reduce the amount of the exemption to each | ||||||
3 | taxpayer on a pro rata basis. | ||||||
4 | The Department shall may adopt rules to implement and | ||||||
5 | administer the exemption for production related tangible | ||||||
6 | personal property. | ||||||
7 | The manufacturing and assembling machinery and equipment
| ||||||
8 | exemption includes the sale of materials to a purchaser who
| ||||||
9 | produces exempted types of machinery, equipment, or tools and | ||||||
10 | who rents or
leases that machinery, equipment, or tools to a
| ||||||
11 | manufacturer of tangible
personal property. This exemption | ||||||
12 | also includes the sale of materials to a
purchaser who | ||||||
13 | manufactures those materials into an exempted type of
| ||||||
14 | machinery, equipment, or tools that the purchaser uses
himself | ||||||
15 | or herself in the
manufacturing of tangible personal property. | ||||||
16 | This exemption includes the
sale of exempted types of machinery | ||||||
17 | or equipment to a
purchaser who is not the manufacturer, but | ||||||
18 | who rents or leases the use of
the property to a manufacturer. | ||||||
19 | The purchaser of the machinery and
equipment who has an active | ||||||
20 | resale registration number shall
furnish that number to the | ||||||
21 | seller at the time of purchase.
A user of the machinery, | ||||||
22 | equipment, or tools without an
active resale registration | ||||||
23 | number shall prepare a certificate of exemption
for each | ||||||
24 | transaction stating facts establishing the exemption for that
| ||||||
25 | transaction, and that certificate shall be
available to the | ||||||
26 | Department for inspection or audit. The Department shall
|
| |||||||
| |||||||
1 | prescribe the form of the certificate. Informal rulings, | ||||||
2 | opinions, or
letters issued by the Department in
response to an | ||||||
3 | inquiry or request for an opinion from any person
regarding the | ||||||
4 | coverage and applicability of this exemption to specific
| ||||||
5 | devices shall be published, maintained as a public record, and | ||||||
6 | made
available for public inspection and copying. If the | ||||||
7 | informal ruling,
opinion, or letter contains trade secrets or | ||||||
8 | other confidential
information, where possible, the Department | ||||||
9 | shall delete that information
before publication. Whenever | ||||||
10 | informal rulings, opinions, or
letters contain a policy of | ||||||
11 | general applicability, the Department
shall formulate and | ||||||
12 | adopt that policy as a rule in accordance with the
Illinois | ||||||
13 | Administrative Procedure Act.
| ||||||
14 | The manufacturing and assembling machinery and equipment
| ||||||
15 | exemption is exempt from the provisions of Section 3-90. | ||||||
16 | (Source: P.A. 100-22, eff. 7-6-17.)
| ||||||
17 | Section 25-10. The Service Use Tax Act is amended by | ||||||
18 | changing Section 2 as follows:
| ||||||
19 | (35 ILCS 110/2) (from Ch. 120, par. 439.32)
| ||||||
20 | Sec. 2. Definitions. In this Act: | ||||||
21 | "Use" means the exercise by any person of any right or | ||||||
22 | power
over tangible personal property incident to the ownership | ||||||
23 | of that
property, but does not include the sale or use for | ||||||
24 | demonstration by him
of that property in any form as tangible |
| |||||||
| |||||||
1 | personal property in the
regular course of business.
"Use" does | ||||||
2 | not mean the interim
use of
tangible personal property nor the | ||||||
3 | physical incorporation of tangible
personal property, as an | ||||||
4 | ingredient or constituent, into other tangible
personal | ||||||
5 | property, (a) which is sold in the regular course of business
| ||||||
6 | or (b) which the person incorporating such ingredient or | ||||||
7 | constituent
therein has undertaken at the time of such purchase | ||||||
8 | to cause to be
transported in interstate commerce to | ||||||
9 | destinations outside the State of
Illinois.
| ||||||
10 | "Purchased from a serviceman" means the acquisition of the | ||||||
11 | ownership
of, or title to, tangible personal property through a | ||||||
12 | sale of service.
| ||||||
13 | "Purchaser" means any person who, through a sale of | ||||||
14 | service, acquires
the ownership of, or title to, any tangible | ||||||
15 | personal property.
| ||||||
16 | "Cost price" means the consideration paid by the serviceman | ||||||
17 | for a
purchase valued in money, whether paid in money or | ||||||
18 | otherwise, including
cash, credits and services, and shall be | ||||||
19 | determined without any
deduction on account of the supplier's | ||||||
20 | cost of the property sold or on
account of any other expense | ||||||
21 | incurred by the supplier. When a serviceman
contracts out part | ||||||
22 | or all of the services required in his sale of service,
it | ||||||
23 | shall be presumed that the cost price to the serviceman of the | ||||||
24 | property
transferred to him or her by his or her subcontractor | ||||||
25 | is equal to 50% of
the subcontractor's charges to the | ||||||
26 | serviceman in the absence of proof of
the consideration paid by |
| |||||||
| |||||||
1 | the subcontractor for the purchase of such property.
| ||||||
2 | "Selling price" means the consideration for a sale valued | ||||||
3 | in money
whether received in money or otherwise, including | ||||||
4 | cash, credits and
service, and shall be determined without any | ||||||
5 | deduction on account of the
serviceman's cost of the property | ||||||
6 | sold, the cost of materials used,
labor or service cost or any | ||||||
7 | other expense whatsoever, but does not
include interest or | ||||||
8 | finance charges which appear as separate items on
the bill of | ||||||
9 | sale or sales contract nor charges that are added to prices
by | ||||||
10 | sellers on account of the seller's duty to collect, from the
| ||||||
11 | purchaser, the tax that is imposed by this Act.
| ||||||
12 | "Department" means the Department of Revenue.
| ||||||
13 | "Person" means any natural individual, firm, partnership,
| ||||||
14 | association, joint stock company, joint venture, public or | ||||||
15 | private
corporation, limited liability company, and any | ||||||
16 | receiver, executor, trustee,
guardian or other representative | ||||||
17 | appointed by order of any court.
| ||||||
18 | "Sale of service" means any transaction except:
| ||||||
19 | (1) a retail sale of tangible personal property taxable | ||||||
20 | under the
Retailers' Occupation Tax Act or under the Use | ||||||
21 | Tax Act.
| ||||||
22 | (2) a sale of tangible personal property for the | ||||||
23 | purpose of resale
made in compliance with Section 2c of the | ||||||
24 | Retailers' Occupation Tax Act.
| ||||||
25 | (3) except as hereinafter provided, a sale or transfer | ||||||
26 | of tangible
personal property as an incident to the |
| |||||||
| |||||||
1 | rendering of service for or by
any governmental body, or | ||||||
2 | for or by any corporation, society,
association, | ||||||
3 | foundation or institution organized and operated
| ||||||
4 | exclusively for charitable, religious or educational | ||||||
5 | purposes or any
not-for-profit corporation, society, | ||||||
6 | association, foundation,
institution or organization which | ||||||
7 | has no compensated officers or
employees and which is | ||||||
8 | organized and operated primarily for the
recreation of | ||||||
9 | persons 55 years of age or older. A limited liability | ||||||
10 | company
may qualify for the exemption under this paragraph | ||||||
11 | only if the limited
liability company is organized and | ||||||
12 | operated exclusively for educational
purposes.
| ||||||
13 | (4) (blank).
| ||||||
14 | (4a) a sale or transfer of tangible personal
property | ||||||
15 | as an incident
to the rendering of service for owners, | ||||||
16 | lessors, or shippers of tangible
personal property which is | ||||||
17 | utilized by interstate carriers for hire for
use as rolling | ||||||
18 | stock moving in interstate commerce so long as so used by
| ||||||
19 | interstate carriers for hire, and equipment operated by a
| ||||||
20 | telecommunications provider, licensed as a common carrier | ||||||
21 | by the Federal
Communications Commission, which is | ||||||
22 | permanently installed in or affixed to
aircraft moving in | ||||||
23 | interstate commerce.
| ||||||
24 | (4a-5) on and after July 1, 2003 and through June 30, | ||||||
25 | 2004, a sale or transfer of a motor vehicle
of
the
second | ||||||
26 | division with a gross vehicle weight in excess of 8,000 |
| |||||||
| |||||||
1 | pounds as an
incident to the rendering of service if that | ||||||
2 | motor
vehicle is subject
to the commercial distribution fee | ||||||
3 | imposed under Section 3-815.1 of the
Illinois Vehicle
Code. | ||||||
4 | Beginning on July 1, 2004 and through June 30, 2005, the | ||||||
5 | use in this State of motor vehicles of the second division: | ||||||
6 | (i) with a gross vehicle weight rating in excess of 8,000 | ||||||
7 | pounds; (ii) that are subject to the commercial | ||||||
8 | distribution fee imposed under Section 3-815.1 of the | ||||||
9 | Illinois Vehicle Code; and (iii) that are primarily used | ||||||
10 | for commercial purposes. Through June 30, 2005, this
| ||||||
11 | exemption applies to repair and replacement parts added | ||||||
12 | after the
initial
purchase of such a motor vehicle if that | ||||||
13 | motor vehicle is used in a manner that
would
qualify for | ||||||
14 | the rolling stock exemption otherwise provided for in this | ||||||
15 | Act. For purposes of this paragraph, "used for commercial | ||||||
16 | purposes" means the transportation of persons or property | ||||||
17 | in furtherance of any commercial or industrial enterprise | ||||||
18 | whether for-hire or not.
| ||||||
19 | (5) a sale or transfer of machinery and equipment used | ||||||
20 | primarily in the
process of the manufacturing or | ||||||
21 | assembling, either in an existing, an expanded
or a new | ||||||
22 | manufacturing facility, of tangible personal property for | ||||||
23 | wholesale or
retail sale or lease, whether such sale or | ||||||
24 | lease is made directly by the
manufacturer or by some other | ||||||
25 | person, whether the materials used in the process
are owned | ||||||
26 | by the manufacturer or some other person, or whether such |
| |||||||
| |||||||
1 | sale or
lease is made apart from or as an incident to the | ||||||
2 | seller's engaging in a
service occupation and the | ||||||
3 | applicable tax is a Service Use Tax or Service
Occupation | ||||||
4 | Tax, rather than Use Tax or Retailers' Occupation Tax. The | ||||||
5 | exemption provided by this paragraph (5) includes | ||||||
6 | production related tangible personal property, as defined | ||||||
7 | in Section 3-50 of the Use Tax Act, purchased on or after | ||||||
8 | July 1, 2019. The exemption provided by this paragraph (5) | ||||||
9 | does not include machinery and equipment used in (i) the | ||||||
10 | generation of electricity for wholesale or retail sale; | ||||||
11 | (ii) the generation or treatment of natural or artificial | ||||||
12 | gas for wholesale or retail sale that is delivered to | ||||||
13 | customers through pipes, pipelines, or mains; or (iii) the | ||||||
14 | treatment of water for wholesale or retail sale that is | ||||||
15 | delivered to customers through pipes, pipelines, or mains. | ||||||
16 | The provisions of Public Act 98-583 are declaratory of | ||||||
17 | existing law as to the meaning and scope of this exemption. | ||||||
18 | The exemption under this paragraph (5) is exempt from the | ||||||
19 | provisions of Section 3-75.
| ||||||
20 | (5a) the repairing, reconditioning or remodeling, for | ||||||
21 | a
common carrier by rail, of tangible personal property | ||||||
22 | which belongs to such
carrier for hire, and as to which | ||||||
23 | such carrier receives the physical possession
of the | ||||||
24 | repaired, reconditioned or remodeled item of tangible | ||||||
25 | personal property
in Illinois, and which such carrier | ||||||
26 | transports, or shares with another common
carrier in the |
| |||||||
| |||||||
1 | transportation of such property, out of Illinois on a | ||||||
2 | standard
uniform bill of lading showing the person who | ||||||
3 | repaired, reconditioned or
remodeled the property to a | ||||||
4 | destination outside Illinois, for use outside
Illinois.
| ||||||
5 | (5b) a sale or transfer of tangible personal property | ||||||
6 | which is produced by
the seller thereof on special order in | ||||||
7 | such a way as to have made the
applicable tax the Service | ||||||
8 | Occupation Tax or the Service Use Tax, rather than
the | ||||||
9 | Retailers' Occupation Tax or the Use Tax, for an interstate | ||||||
10 | carrier by rail
which receives the physical possession of | ||||||
11 | such property in Illinois, and which
transports such | ||||||
12 | property, or shares with another common carrier in the
| ||||||
13 | transportation of such property, out of Illinois on a | ||||||
14 | standard uniform bill of
lading showing the seller of the | ||||||
15 | property as the shipper or consignor of such
property to a | ||||||
16 | destination outside Illinois, for use outside Illinois.
| ||||||
17 | (6) until July 1, 2003, a sale or transfer of | ||||||
18 | distillation machinery
and equipment, sold
as a unit or kit | ||||||
19 | and assembled or installed by the retailer, which
machinery | ||||||
20 | and equipment is certified by the user to be used only for | ||||||
21 | the
production of ethyl alcohol that will be used for | ||||||
22 | consumption as motor fuel
or as a component of motor fuel | ||||||
23 | for the personal use of such user and not
subject to sale | ||||||
24 | or resale.
| ||||||
25 | (7) at the election of any serviceman not required to | ||||||
26 | be
otherwise registered as a retailer under Section 2a of |
| |||||||
| |||||||
1 | the Retailers'
Occupation Tax Act, made for each fiscal | ||||||
2 | year sales
of service in which the aggregate annual cost | ||||||
3 | price of tangible
personal property transferred as an | ||||||
4 | incident to the sales of service is
less than 35%, or 75% | ||||||
5 | in the case of servicemen transferring prescription
drugs | ||||||
6 | or servicemen engaged in graphic arts production, of the | ||||||
7 | aggregate
annual total gross receipts from all sales of | ||||||
8 | service. The purchase of
such tangible personal property by | ||||||
9 | the serviceman shall be subject to tax
under the Retailers' | ||||||
10 | Occupation Tax Act and the Use Tax Act.
However, if a
| ||||||
11 | primary serviceman who has made the election described in | ||||||
12 | this paragraph
subcontracts service work to a secondary | ||||||
13 | serviceman who has also made the
election described in this | ||||||
14 | paragraph, the primary serviceman does not
incur a Use Tax | ||||||
15 | liability if the secondary serviceman (i) has paid or will | ||||||
16 | pay
Use
Tax on his or her cost price of any tangible | ||||||
17 | personal property transferred
to the primary serviceman | ||||||
18 | and (ii) certifies that fact in writing to the
primary
| ||||||
19 | serviceman.
| ||||||
20 | Tangible personal property transferred incident to the | ||||||
21 | completion of a
maintenance agreement is exempt from the tax | ||||||
22 | imposed pursuant to this Act.
| ||||||
23 | Exemption (5) also includes machinery and equipment used in | ||||||
24 | the general
maintenance or repair of such exempt machinery and | ||||||
25 | equipment or for in-house
manufacture of exempt machinery and | ||||||
26 | equipment. On and after July 1, 2017, exemption (5) also
|
| |||||||
| |||||||
1 | includes graphic arts machinery and equipment, as
defined in | ||||||
2 | paragraph (5) of Section 3-5. The machinery and equipment | ||||||
3 | exemption does not include machinery and equipment used in (i) | ||||||
4 | the generation of electricity for wholesale or retail sale; | ||||||
5 | (ii) the generation or treatment of natural or artificial gas | ||||||
6 | for wholesale or retail sale that is delivered to customers | ||||||
7 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
8 | water for wholesale or retail sale that is delivered to | ||||||
9 | customers through pipes, pipelines, or mains. The provisions of | ||||||
10 | Public Act 98-583 are declaratory of existing law as to the | ||||||
11 | meaning and scope of this exemption. For the purposes of | ||||||
12 | exemption
(5), each of these terms shall have the following | ||||||
13 | meanings: (1) "manufacturing
process" shall mean the | ||||||
14 | production of any article of tangible personal
property, | ||||||
15 | whether such article is a finished product or an article for | ||||||
16 | use in
the process of manufacturing or assembling a different | ||||||
17 | article of tangible
personal property, by procedures commonly | ||||||
18 | regarded as manufacturing,
processing, fabricating, or | ||||||
19 | refining which changes some existing
material or materials into | ||||||
20 | a material with a different form, use or
name. In relation to a | ||||||
21 | recognized integrated business composed of a
series of | ||||||
22 | operations which collectively constitute manufacturing, or
| ||||||
23 | individually constitute manufacturing operations, the | ||||||
24 | manufacturing
process shall be deemed to commence with the | ||||||
25 | first operation or stage of
production in the series, and shall | ||||||
26 | not be deemed to end until the
completion of the final product |
| |||||||
| |||||||
1 | in the last operation or stage of
production in the series; and | ||||||
2 | further, for purposes of exemption (5),
photoprocessing is | ||||||
3 | deemed to be a manufacturing process of tangible
personal | ||||||
4 | property for wholesale or retail sale; (2) "assembling process" | ||||||
5 | shall
mean the production of any article of tangible personal | ||||||
6 | property, whether such
article is a finished product or an | ||||||
7 | article for use in the process of
manufacturing or assembling a | ||||||
8 | different article of tangible personal
property, by the | ||||||
9 | combination of existing materials in a manner commonly
regarded | ||||||
10 | as assembling which results in a material of a different form,
| ||||||
11 | use or name; (3) "machinery" shall mean major mechanical | ||||||
12 | machines or
major components of such machines contributing to a | ||||||
13 | manufacturing or
assembling process; and (4) "equipment" shall | ||||||
14 | include any independent
device or tool separate from any | ||||||
15 | machinery but essential to an
integrated manufacturing or | ||||||
16 | assembly process; including computers
used primarily in a | ||||||
17 | manufacturer's computer
assisted design, computer assisted | ||||||
18 | manufacturing (CAD/CAM) system;
or any subunit or assembly | ||||||
19 | comprising a component of any machinery or
auxiliary, adjunct | ||||||
20 | or attachment parts of machinery, such as tools, dies,
jigs, | ||||||
21 | fixtures, patterns and molds; or any parts which require | ||||||
22 | periodic
replacement in the course of normal operation; but | ||||||
23 | shall not include hand
tools.
Equipment includes chemicals or | ||||||
24 | chemicals acting as catalysts but only if the
chemicals or | ||||||
25 | chemicals acting as catalysts effect a direct and immediate | ||||||
26 | change
upon a
product being manufactured or assembled for |
| |||||||
| |||||||
1 | wholesale or retail sale or
lease.
The purchaser of such | ||||||
2 | machinery and equipment who has an active
resale registration | ||||||
3 | number shall furnish such number to the seller at the
time of | ||||||
4 | purchase. The user of such machinery and equipment and tools
| ||||||
5 | without an active resale registration number shall prepare a | ||||||
6 | certificate of
exemption for each transaction stating facts | ||||||
7 | establishing the exemption for
that transaction, which | ||||||
8 | certificate shall be available to the Department
for inspection | ||||||
9 | or audit. The Department shall prescribe the form of the
| ||||||
10 | certificate.
| ||||||
11 | Any informal rulings, opinions or letters issued by the | ||||||
12 | Department in
response to an inquiry or request for any opinion | ||||||
13 | from any person
regarding the coverage and applicability of | ||||||
14 | exemption (5) to specific
devices shall be published, | ||||||
15 | maintained as a public record, and made
available for public | ||||||
16 | inspection and copying. If the informal ruling,
opinion or | ||||||
17 | letter contains trade secrets or other confidential
| ||||||
18 | information, where possible the Department shall delete such | ||||||
19 | information
prior to publication. Whenever such informal | ||||||
20 | rulings, opinions, or
letters contain any policy of general | ||||||
21 | applicability, the Department
shall formulate and adopt such | ||||||
22 | policy as a rule in accordance with the
provisions of the | ||||||
23 | Illinois Administrative Procedure Act.
| ||||||
24 | On and after July 1, 1987, no entity otherwise eligible | ||||||
25 | under exemption
(3) of this Section shall make tax-free | ||||||
26 | purchases unless it has an active
exemption identification |
| |||||||
| |||||||
1 | number issued by the Department.
| ||||||
2 | The purchase, employment and transfer of such tangible | ||||||
3 | personal
property as newsprint and ink for the primary purpose | ||||||
4 | of conveying news
(with or without other information) is not a | ||||||
5 | purchase, use or sale of
service or of tangible personal | ||||||
6 | property within the meaning of this Act.
| ||||||
7 | "Serviceman" means any person who is engaged in the | ||||||
8 | occupation of
making sales of service.
| ||||||
9 | "Sale at retail" means "sale at retail" as defined in the | ||||||
10 | Retailers'
Occupation Tax Act.
| ||||||
11 | "Supplier" means any person who makes sales of tangible | ||||||
12 | personal
property to servicemen for the purpose of resale as an | ||||||
13 | incident to a
sale of service.
| ||||||
14 | "Serviceman maintaining a place of business in this State", | ||||||
15 | or any
like term, means and includes any serviceman:
| ||||||
16 | (1) having or maintaining within this State, directly | ||||||
17 | or by a
subsidiary, an office, distribution house, sales | ||||||
18 | house, warehouse or
other place of business, or any agent | ||||||
19 | or other representative operating
within this State under | ||||||
20 | the authority of the serviceman or its
subsidiary, | ||||||
21 | irrespective of whether such place of business or agent or
| ||||||
22 | other representative is located here permanently or | ||||||
23 | temporarily, or
whether such serviceman or subsidiary is | ||||||
24 | licensed to do business in this
State; | ||||||
25 | (1.1) having a contract with a person located in this | ||||||
26 | State under which the person, for a commission or other |
| |||||||
| |||||||
1 | consideration based on the sale of service by the | ||||||
2 | serviceman, directly or indirectly refers potential | ||||||
3 | customers to the serviceman by providing to the potential | ||||||
4 | customers a promotional code or other mechanism that allows | ||||||
5 | the serviceman to track purchases referred by such persons. | ||||||
6 | Examples of mechanisms that allow the serviceman to track | ||||||
7 | purchases referred by such persons include but are not | ||||||
8 | limited to the use of a link on the person's Internet | ||||||
9 | website, promotional codes distributed through the | ||||||
10 | person's hand-delivered or mailed material, and | ||||||
11 | promotional codes distributed by the person through radio | ||||||
12 | or other broadcast media. The provisions of this paragraph | ||||||
13 | (1.1) shall apply only if the cumulative gross receipts | ||||||
14 | from sales of service by the serviceman to customers who | ||||||
15 | are referred to the serviceman by all persons in this State | ||||||
16 | under such contracts exceed $10,000 during the preceding 4 | ||||||
17 | quarterly periods ending on the last day of March, June, | ||||||
18 | September, and December; a serviceman meeting the | ||||||
19 | requirements of this paragraph (1.1) shall be presumed to | ||||||
20 | be maintaining a place of business in this State but may | ||||||
21 | rebut this presumption by submitting proof that the | ||||||
22 | referrals or other activities pursued within this State by | ||||||
23 | such persons were not sufficient to meet the nexus | ||||||
24 | standards of the United States Constitution during the | ||||||
25 | preceding 4 quarterly periods; | ||||||
26 | (1.2) beginning July 1, 2011, having a contract with a |
| |||||||
| |||||||
1 | person located in this State under which: | ||||||
2 | (A) the serviceman sells the same or substantially | ||||||
3 | similar line of services as the person located in this | ||||||
4 | State and does so using an identical or substantially | ||||||
5 | similar name, trade name, or trademark as the person | ||||||
6 | located in this State; and | ||||||
7 | (B) the serviceman provides a commission or other | ||||||
8 | consideration to the person located in this State based | ||||||
9 | upon the sale of services by the serviceman. | ||||||
10 | The provisions of this paragraph (1.2) shall apply only if | ||||||
11 | the cumulative gross receipts from sales of service by the | ||||||
12 | serviceman to customers in this State under all such | ||||||
13 | contracts exceed $10,000 during the preceding 4 quarterly | ||||||
14 | periods ending on the last day of March, June, September, | ||||||
15 | and December;
| ||||||
16 | (2) soliciting orders for tangible personal property | ||||||
17 | by means of a
telecommunication or television shopping | ||||||
18 | system (which utilizes toll free
numbers) which is intended | ||||||
19 | by the retailer to be broadcast by cable
television or | ||||||
20 | other means of broadcasting, to consumers located in this | ||||||
21 | State;
| ||||||
22 | (3) pursuant to a contract with a broadcaster or | ||||||
23 | publisher located in this
State, soliciting orders for | ||||||
24 | tangible personal property by means of advertising
which is | ||||||
25 | disseminated primarily to consumers located in this State | ||||||
26 | and only
secondarily to bordering jurisdictions;
|
| |||||||
| |||||||
1 | (4) soliciting orders for tangible personal property | ||||||
2 | by mail if the
solicitations are substantial and recurring | ||||||
3 | and if the retailer benefits
from any banking, financing, | ||||||
4 | debt collection, telecommunication, or
marketing | ||||||
5 | activities occurring in this State or benefits from the | ||||||
6 | location
in this State of authorized installation, | ||||||
7 | servicing, or repair facilities;
| ||||||
8 | (5) being owned or controlled by the same interests | ||||||
9 | which own or
control any retailer engaging in business in | ||||||
10 | the same or similar line of
business in this State;
| ||||||
11 | (6) having a franchisee or licensee operating under its | ||||||
12 | trade name if
the franchisee or licensee is required to | ||||||
13 | collect the tax under this Section;
| ||||||
14 | (7) pursuant to a contract with a cable television | ||||||
15 | operator located in
this State, soliciting orders for | ||||||
16 | tangible personal property by means of
advertising which is | ||||||
17 | transmitted or distributed over a cable television
system | ||||||
18 | in this State;
| ||||||
19 | (8) engaging in activities in Illinois, which | ||||||
20 | activities in the
state in which the supply business | ||||||
21 | engaging in such activities is located
would constitute | ||||||
22 | maintaining a place of business in that state; or
| ||||||
23 | (9) beginning October 1, 2018, making sales of service | ||||||
24 | to purchasers in Illinois from outside of Illinois if: | ||||||
25 | (A) the cumulative gross receipts from sales of | ||||||
26 | service to purchasers in Illinois are $100,000 or more; |
| |||||||
| |||||||
1 | or | ||||||
2 | (B) the serviceman enters into 200 or more separate | ||||||
3 | transactions for sales of service to purchasers in | ||||||
4 | Illinois. | ||||||
5 | The serviceman shall determine on a quarterly basis, | ||||||
6 | ending on the last day of March, June, September, and | ||||||
7 | December, whether he or she meets the criteria of either | ||||||
8 | subparagraph (A) or (B) of this paragraph (9) for the | ||||||
9 | preceding 12-month period. If the serviceman meets the | ||||||
10 | criteria of either subparagraph (A) or (B) for a 12-month | ||||||
11 | period, he or she is considered a serviceman maintaining a | ||||||
12 | place of business in this State and is required to collect | ||||||
13 | and remit the tax imposed under this Act and file returns | ||||||
14 | for one year. At the end of that one-year period, the | ||||||
15 | serviceman shall determine whether the serviceman met the | ||||||
16 | criteria of either subparagraph (A) or (B) during the | ||||||
17 | preceding 12-month period. If the serviceman met the | ||||||
18 | criteria in either subparagraph (A) or (B) for the | ||||||
19 | preceding 12-month period, he or she is considered a | ||||||
20 | serviceman maintaining a place of business in this State | ||||||
21 | and is required to collect and remit the tax imposed under | ||||||
22 | this Act and file returns for the subsequent year. If at | ||||||
23 | the end of a one-year period a serviceman that was required | ||||||
24 | to collect and remit the tax imposed under this Act | ||||||
25 | determines that he or she did not meet the criteria in | ||||||
26 | either subparagraph (A) or (B) during the preceding |
| |||||||
| |||||||
1 | 12-month period, the serviceman subsequently shall | ||||||
2 | determine on a quarterly basis, ending on the last day of | ||||||
3 | March, June, September, and December, whether he or she | ||||||
4 | meets the criteria of either subparagraph (A) or (B) for | ||||||
5 | the preceding 12-month period. | ||||||
6 | (Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; | ||||||
7 | 100-587, eff. 6-4-18; 100-863, eff. 8-14-18.)
| ||||||
8 | Section 25-15. The Service Occupation Tax Act is amended by | ||||||
9 | changing Section 2 as follows:
| ||||||
10 | (35 ILCS 115/2) (from Ch. 120, par. 439.102)
| ||||||
11 | Sec. 2. In this Act: | ||||||
12 | "Transfer" means any transfer of the title to property or | ||||||
13 | of
the ownership of property whether or not the transferor | ||||||
14 | retains title as
security for the payment of amounts due him | ||||||
15 | from the transferee.
| ||||||
16 | "Cost Price" means the consideration paid by the serviceman | ||||||
17 | for a
purchase valued in money, whether paid in money or | ||||||
18 | otherwise, including
cash, credits and services, and shall be | ||||||
19 | determined without any deduction
on account of the supplier's | ||||||
20 | cost of the property sold or on account of any
other expense | ||||||
21 | incurred by the supplier. When a serviceman contracts out
part | ||||||
22 | or all of the services required in his sale of service, it | ||||||
23 | shall be
presumed that the cost price to the serviceman of the | ||||||
24 | property
transferred to him by his or her subcontractor is |
| |||||||
| |||||||
1 | equal to 50% of the
subcontractor's charges to the serviceman | ||||||
2 | in the absence of proof of the
consideration paid by the | ||||||
3 | subcontractor for the purchase of such
property.
| ||||||
4 | "Department" means the Department of Revenue.
| ||||||
5 | "Person" means any natural individual, firm, partnership, | ||||||
6 | association, joint
stock company, joint venture, public or | ||||||
7 | private corporation, limited liability
company, and any | ||||||
8 | receiver, executor, trustee, guardian or other representative
| ||||||
9 | appointed by order of any court.
| ||||||
10 | "Sale of Service" means any transaction except:
| ||||||
11 | (a) A retail sale of tangible personal property taxable | ||||||
12 | under the Retailers'
Occupation Tax Act or under the Use Tax | ||||||
13 | Act.
| ||||||
14 | (b) A sale of tangible personal property for the purpose of | ||||||
15 | resale made in
compliance with Section 2c of the Retailers' | ||||||
16 | Occupation Tax Act.
| ||||||
17 | (c) Except as hereinafter provided, a sale or transfer of | ||||||
18 | tangible personal
property as an incident to the rendering of | ||||||
19 | service for or by any governmental
body or for or by any | ||||||
20 | corporation, society, association, foundation or
institution | ||||||
21 | organized and operated exclusively for charitable, religious | ||||||
22 | or
educational purposes or any not-for-profit corporation, | ||||||
23 | society, association,
foundation, institution or organization | ||||||
24 | which has no compensated officers or
employees and which is | ||||||
25 | organized and operated primarily for the recreation of
persons | ||||||
26 | 55 years of age or older. A limited liability company may |
| |||||||
| |||||||
1 | qualify for
the exemption under this paragraph only if the | ||||||
2 | limited liability company is
organized and operated | ||||||
3 | exclusively for educational purposes.
| ||||||
4 | (d) (Blank).
| ||||||
5 | (d-1) A sale or transfer of tangible personal
property as | ||||||
6 | an incident to
the rendering of service for owners, lessors or | ||||||
7 | shippers of tangible personal
property which is utilized by | ||||||
8 | interstate carriers for hire for use as rolling
stock moving in | ||||||
9 | interstate commerce, and equipment operated
by a | ||||||
10 | telecommunications provider, licensed as a common carrier by | ||||||
11 | the
Federal Communications Commission, which is permanently | ||||||
12 | installed in or
affixed to aircraft moving in interstate | ||||||
13 | commerce.
| ||||||
14 | (d-1.1) On and after July 1, 2003 and through June 30, | ||||||
15 | 2004, a sale or transfer of a motor vehicle
of the
second | ||||||
16 | division with a gross vehicle weight in excess of 8,000 pounds | ||||||
17 | as an
incident to the rendering of service if that motor
| ||||||
18 | vehicle is subject
to the commercial distribution fee imposed | ||||||
19 | under Section 3-815.1 of the
Illinois Vehicle
Code. Beginning | ||||||
20 | on July 1, 2004 and through June 30, 2005, the use in this | ||||||
21 | State of motor vehicles of the second division: (i) with a | ||||||
22 | gross vehicle weight rating in excess of 8,000 pounds; (ii) | ||||||
23 | that are subject to the commercial distribution fee imposed | ||||||
24 | under Section 3-815.1 of the Illinois Vehicle Code; and (iii) | ||||||
25 | that are primarily used for commercial purposes. Through June | ||||||
26 | 30, 2005, this exemption applies to repair and replacement |
| |||||||
| |||||||
1 | parts added after the
initial
purchase of such a motor vehicle | ||||||
2 | if that motor vehicle is used in a manner that
would
qualify | ||||||
3 | for the rolling stock exemption otherwise provided for in this | ||||||
4 | Act. For purposes of this paragraph, "used for commercial | ||||||
5 | purposes" means the transportation of persons or property in | ||||||
6 | furtherance of any commercial or industrial enterprise whether | ||||||
7 | for-hire or not.
| ||||||
8 | (d-2) The repairing, reconditioning or remodeling, for a | ||||||
9 | common carrier by
rail, of tangible personal property which | ||||||
10 | belongs to such carrier for hire, and
as to which such carrier | ||||||
11 | receives the physical possession of the repaired,
| ||||||
12 | reconditioned or remodeled item of tangible personal property | ||||||
13 | in Illinois, and
which such carrier transports, or shares with | ||||||
14 | another common carrier in the
transportation of such property, | ||||||
15 | out of Illinois on a standard uniform bill of
lading showing | ||||||
16 | the person who repaired, reconditioned or remodeled the | ||||||
17 | property
as the shipper or consignor of such property to a | ||||||
18 | destination outside Illinois,
for use outside Illinois.
| ||||||
19 | (d-3) A sale or transfer of tangible personal property | ||||||
20 | which
is produced by the seller thereof on special order in | ||||||
21 | such a way as to have
made the applicable tax the Service | ||||||
22 | Occupation Tax or the Service Use Tax,
rather than the | ||||||
23 | Retailers' Occupation Tax or the Use Tax, for an interstate
| ||||||
24 | carrier by rail which receives the physical possession of such | ||||||
25 | property in
Illinois, and which transports such property, or | ||||||
26 | shares with another common
carrier in the transportation of |
| |||||||
| |||||||
1 | such property, out of Illinois on a standard
uniform bill of | ||||||
2 | lading showing the seller of the property as the shipper or
| ||||||
3 | consignor of such property to a destination outside Illinois, | ||||||
4 | for use outside
Illinois.
| ||||||
5 | (d-4) Until January 1, 1997, a sale, by a registered | ||||||
6 | serviceman paying tax
under this Act to the Department, of | ||||||
7 | special order printed materials delivered
outside Illinois and | ||||||
8 | which are not returned to this State, if delivery is made
by | ||||||
9 | the seller or agent of the seller, including an agent who | ||||||
10 | causes the product
to be delivered outside Illinois by a common | ||||||
11 | carrier or the U.S.
postal service.
| ||||||
12 | (e) A sale or transfer of machinery and equipment used | ||||||
13 | primarily in
the process of the manufacturing or assembling, | ||||||
14 | either in an existing, an
expanded or a new manufacturing | ||||||
15 | facility, of tangible personal property for
wholesale or retail | ||||||
16 | sale or lease, whether such sale or lease is made directly
by | ||||||
17 | the manufacturer or by some other person, whether the materials | ||||||
18 | used in the
process are owned by the manufacturer or some other | ||||||
19 | person, or whether such
sale or lease is made apart from or as | ||||||
20 | an incident to the seller's engaging in
a service occupation | ||||||
21 | and the applicable tax is a Service Occupation Tax or
Service | ||||||
22 | Use Tax, rather than Retailers' Occupation Tax or Use Tax. The | ||||||
23 | exemption provided by this paragraph (e) includes production | ||||||
24 | related tangible personal property, as defined in Section 3-50 | ||||||
25 | of the Use Tax Act, purchased on or after July 1, 2019. The | ||||||
26 | exemption provided by this paragraph (e) does not include |
| |||||||
| |||||||
1 | machinery and equipment used in (i) the generation of | ||||||
2 | electricity for wholesale or retail sale; (ii) the generation | ||||||
3 | or treatment of natural or artificial gas for wholesale or | ||||||
4 | retail sale that is delivered to customers through pipes, | ||||||
5 | pipelines, or mains; or (iii) the treatment of water for | ||||||
6 | wholesale or retail sale that is delivered to customers through | ||||||
7 | pipes, pipelines, or mains. The provisions of Public Act 98-583 | ||||||
8 | are declaratory of existing law as to the meaning and scope of | ||||||
9 | this exemption. The exemption under this subsection (e) is | ||||||
10 | exempt from the provisions of Section 3-75.
| ||||||
11 | (f) Until July 1, 2003, the sale or transfer of | ||||||
12 | distillation
machinery
and equipment, sold as a
unit or kit and | ||||||
13 | assembled or installed by the retailer, which machinery
and | ||||||
14 | equipment is certified by the user to be used only for the | ||||||
15 | production
of ethyl alcohol that will be used for consumption | ||||||
16 | as motor fuel or as a
component of motor fuel for the personal | ||||||
17 | use of such user and not subject
to sale or resale.
| ||||||
18 | (g) At the election of any serviceman not required to be | ||||||
19 | otherwise
registered as a retailer under Section 2a of the | ||||||
20 | Retailers' Occupation Tax Act,
made for each fiscal year sales | ||||||
21 | of service in which the aggregate annual cost
price of tangible | ||||||
22 | personal property transferred as an incident to the sales of
| ||||||
23 | service is less than 35% (75% in the case of servicemen | ||||||
24 | transferring
prescription drugs or servicemen engaged in | ||||||
25 | graphic arts production) of the
aggregate annual total gross | ||||||
26 | receipts from all sales of service. The purchase
of such |
| |||||||
| |||||||
1 | tangible personal property by the serviceman shall be subject | ||||||
2 | to tax
under the Retailers' Occupation Tax Act and the Use Tax | ||||||
3 | Act.
However, if a
primary serviceman who has made the election | ||||||
4 | described in this paragraph
subcontracts service work to a | ||||||
5 | secondary serviceman who has also made the
election described | ||||||
6 | in this paragraph, the primary serviceman does not
incur a Use | ||||||
7 | Tax liability if the secondary serviceman (i) has paid or will | ||||||
8 | pay
Use
Tax on his or her cost price of any tangible personal | ||||||
9 | property transferred
to the primary serviceman and (ii) | ||||||
10 | certifies that fact in writing to the
primary serviceman.
| ||||||
11 | Tangible personal property transferred incident to the | ||||||
12 | completion of a
maintenance agreement is exempt from the tax | ||||||
13 | imposed pursuant to this Act.
| ||||||
14 | Exemption (e) also includes machinery and equipment used in | ||||||
15 | the
general maintenance or repair of such exempt machinery and | ||||||
16 | equipment or for
in-house manufacture of exempt machinery and | ||||||
17 | equipment.
On and after July 1, 2017, exemption (e) also
| ||||||
18 | includes graphic arts machinery and equipment, as
defined in | ||||||
19 | paragraph (5) of Section 3-5. The machinery and equipment | ||||||
20 | exemption does not include machinery and equipment used in (i) | ||||||
21 | the generation of electricity for wholesale or retail sale; | ||||||
22 | (ii) the generation or treatment of natural or artificial gas | ||||||
23 | for wholesale or retail sale that is delivered to customers | ||||||
24 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
25 | water for wholesale or retail sale that is delivered to | ||||||
26 | customers through pipes, pipelines, or mains. The provisions of |
| |||||||
| |||||||
1 | Public Act 98-583 are declaratory of existing law as to the | ||||||
2 | meaning and scope of this exemption. For the purposes of | ||||||
3 | exemption (e), each of these terms shall have the following
| ||||||
4 | meanings: (1) "manufacturing process" shall mean the | ||||||
5 | production of any
article of tangible personal property, | ||||||
6 | whether such article is a
finished product or an article for | ||||||
7 | use in the process of manufacturing
or assembling a different | ||||||
8 | article of tangible personal property, by
procedures commonly | ||||||
9 | regarded as manufacturing, processing, fabricating,
or | ||||||
10 | refining which changes some existing material or materials into | ||||||
11 | a
material with a different form, use or name. In relation to a
| ||||||
12 | recognized integrated business composed of a series of | ||||||
13 | operations which
collectively constitute manufacturing, or | ||||||
14 | individually constitute
manufacturing operations, the | ||||||
15 | manufacturing process shall be deemed to
commence with the | ||||||
16 | first operation or stage of production in the series,
and shall | ||||||
17 | not be deemed to end until the completion of the final product
| ||||||
18 | in the last operation or stage of production in the series; and | ||||||
19 | further for
purposes of exemption (e), photoprocessing is | ||||||
20 | deemed to be a manufacturing
process of tangible personal | ||||||
21 | property for wholesale or retail sale;
(2) "assembling process" | ||||||
22 | shall mean the production of any article of
tangible personal | ||||||
23 | property, whether such article is a finished product
or an | ||||||
24 | article for use in the process of manufacturing or assembling a
| ||||||
25 | different article of tangible personal property, by the | ||||||
26 | combination of
existing materials in a manner commonly regarded |
| |||||||
| |||||||
1 | as assembling which
results in a material of a different form, | ||||||
2 | use or name; (3) "machinery"
shall mean major mechanical | ||||||
3 | machines or major components of such machines
contributing to a | ||||||
4 | manufacturing or assembling process; and (4) "equipment"
shall | ||||||
5 | include any independent device or tool separate from any | ||||||
6 | machinery but
essential to an integrated manufacturing or | ||||||
7 | assembly process; including
computers used primarily in a | ||||||
8 | manufacturer's computer
assisted design, computer assisted | ||||||
9 | manufacturing (CAD/CAM) system; or any
subunit or assembly | ||||||
10 | comprising a component of any machinery or auxiliary,
adjunct | ||||||
11 | or attachment parts of machinery, such as tools, dies, jigs, | ||||||
12 | fixtures,
patterns and molds; or any parts which require | ||||||
13 | periodic replacement in the
course of normal operation; but | ||||||
14 | shall not include hand tools. Equipment
includes chemicals or | ||||||
15 | chemicals acting as catalysts but only if the chemicals
or | ||||||
16 | chemicals acting as catalysts effect a direct and immediate | ||||||
17 | change upon a
product being manufactured or assembled for | ||||||
18 | wholesale or retail sale or lease.
The purchaser of such | ||||||
19 | machinery and equipment
who has an active resale registration | ||||||
20 | number shall furnish such number to
the seller at the time of | ||||||
21 | purchase. The purchaser of such machinery and
equipment and | ||||||
22 | tools without an active resale registration number shall | ||||||
23 | furnish
to the seller a certificate of exemption for each | ||||||
24 | transaction stating facts
establishing the exemption for that | ||||||
25 | transaction, which certificate shall
be available to the | ||||||
26 | Department for inspection or audit.
|
| |||||||
| |||||||
1 | Except as provided in Section 2d of this Act, the rolling | ||||||
2 | stock exemption
applies to rolling
stock
used by an interstate
| ||||||
3 | carrier for hire, even just between points in Illinois, if such | ||||||
4 | rolling
stock transports, for hire, persons whose journeys or | ||||||
5 | property whose
shipments originate or terminate outside | ||||||
6 | Illinois.
| ||||||
7 | Any informal rulings, opinions or letters issued by the | ||||||
8 | Department in
response to an inquiry or request for any opinion | ||||||
9 | from any person
regarding the coverage and applicability of | ||||||
10 | exemption (e) to specific
devices shall be published, | ||||||
11 | maintained as a public record, and made
available for public | ||||||
12 | inspection and copying. If the informal ruling,
opinion or | ||||||
13 | letter contains trade secrets or other confidential
| ||||||
14 | information, where possible the Department shall delete such | ||||||
15 | information
prior to publication. Whenever such informal | ||||||
16 | rulings, opinions, or
letters contain any policy of general | ||||||
17 | applicability, the Department
shall formulate and adopt such | ||||||
18 | policy as a rule in accordance with the
provisions of the | ||||||
19 | Illinois Administrative Procedure Act.
| ||||||
20 | On and after July 1, 1987, no entity otherwise eligible | ||||||
21 | under exemption
(c) of this Section shall make tax-free | ||||||
22 | purchases unless it has an active
exemption identification | ||||||
23 | number issued by the Department.
| ||||||
24 | "Serviceman" means any person who is engaged in the | ||||||
25 | occupation of
making sales of service.
| ||||||
26 | "Sale at Retail" means "sale at retail" as defined in the |
| |||||||
| |||||||
1 | Retailers'
Occupation Tax Act.
| ||||||
2 | "Supplier" means any person who makes sales of tangible | ||||||
3 | personal
property to servicemen for the purpose of resale as an | ||||||
4 | incident to a
sale of service.
| ||||||
5 | (Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; | ||||||
6 | 100-863, eff. 8-14-18.)
| ||||||
7 | Section 25-20. The Retailers' Occupation Tax Act is amended | ||||||
8 | by changing Section 2-45 as follows:
| ||||||
9 | (35 ILCS 120/2-45) (from Ch. 120, par. 441-45)
| ||||||
10 | Sec. 2-45. Manufacturing and assembly exemption. The | ||||||
11 | manufacturing
and assembly machinery and equipment exemption | ||||||
12 | includes machinery
and equipment that replaces machinery
and | ||||||
13 | equipment in an existing manufacturing facility as well as | ||||||
14 | machinery
and equipment that are for use in an expanded or new
| ||||||
15 | manufacturing facility.
| ||||||
16 | The machinery and equipment exemption also includes | ||||||
17 | machinery
and equipment used in the
general maintenance or | ||||||
18 | repair of exempt machinery and equipment or for
in-house | ||||||
19 | manufacture of exempt machinery and equipment.
Beginning on | ||||||
20 | July 1, 2017, the manufacturing and assembling machinery and | ||||||
21 | equipment exemption also includes graphic arts machinery and | ||||||
22 | equipment, as defined in paragraph (4) of Section 2-5. The | ||||||
23 | machinery and equipment exemption does not include machinery | ||||||
24 | and equipment used in (i) the generation of electricity for |
| |||||||
| |||||||
1 | wholesale or retail sale; (ii) the generation or treatment of | ||||||
2 | natural or artificial gas for wholesale or retail sale that is | ||||||
3 | delivered to customers through pipes, pipelines, or mains; or | ||||||
4 | (iii) the treatment of water for wholesale or retail sale that | ||||||
5 | is delivered to customers through pipes, pipelines, or mains. | ||||||
6 | The provisions of this amendatory Act of the 98th General | ||||||
7 | Assembly are declaratory of existing law as to the meaning and | ||||||
8 | scope of this exemption. For the purposes of this exemption, | ||||||
9 | terms have the following meanings:
| ||||||
10 | (1) "Manufacturing process" means the production of an | ||||||
11 | article of
tangible personal property, whether the article | ||||||
12 | is a finished product or an
article for use in the process | ||||||
13 | of manufacturing or assembling a different
article of | ||||||
14 | tangible personal property, by a procedure commonly | ||||||
15 | regarded as
manufacturing, processing, fabricating, or | ||||||
16 | refining that changes some
existing material or materials | ||||||
17 | into a material with a different form, use,
or name. In | ||||||
18 | relation to a recognized integrated business composed of a
| ||||||
19 | series of operations that collectively constitute | ||||||
20 | manufacturing, or
individually constitute manufacturing | ||||||
21 | operations, the manufacturing process
commences with the | ||||||
22 | first operation or stage of production in the series and
| ||||||
23 | does not end until the completion of the final product in | ||||||
24 | the last
operation or stage of production in the series. | ||||||
25 | For purposes of this
exemption, photoprocessing is a | ||||||
26 | manufacturing process of tangible personal
property for |
| |||||||
| |||||||
1 | wholesale or retail sale.
| ||||||
2 | (2) "Assembling process" means the production of an | ||||||
3 | article of
tangible personal property, whether the article | ||||||
4 | is a finished product or an
article for use in the process | ||||||
5 | of manufacturing or assembling a different
article of | ||||||
6 | tangible personal property, by the combination of existing
| ||||||
7 | materials in a manner commonly regarded as assembling that | ||||||
8 | results in a
material of a different form, use, or name.
| ||||||
9 | (3) "Machinery" means major mechanical machines or | ||||||
10 | major components of
those machines contributing to a | ||||||
11 | manufacturing or assembling process.
| ||||||
12 | (4) "Equipment" includes an independent device or tool | ||||||
13 | separate from
machinery but essential to an integrated | ||||||
14 | manufacturing or assembly process;
including computers | ||||||
15 | used primarily in a manufacturer's computer assisted | ||||||
16 | design, computer assisted manufacturing
(CAD/CAM) system; | ||||||
17 | any subunit or assembly comprising a component of any
| ||||||
18 | machinery or auxiliary, adjunct, or attachment parts of | ||||||
19 | machinery, such as
tools, dies, jigs, fixtures, patterns, | ||||||
20 | and molds; and any parts that
require periodic replacement | ||||||
21 | in the course of normal operation; but does
not include | ||||||
22 | hand tools. Equipment includes chemicals or chemicals | ||||||
23 | acting as
catalysts but only if
the chemicals or chemicals | ||||||
24 | acting as catalysts effect a direct and
immediate change | ||||||
25 | upon a
product being manufactured or assembled for | ||||||
26 | wholesale or retail sale or
lease.
|
| |||||||
| |||||||
1 | (5) "Production related tangible personal property" | ||||||
2 | means all tangible personal property that is used or | ||||||
3 | consumed by the purchaser in a manufacturing facility in | ||||||
4 | which a manufacturing process takes place and includes, | ||||||
5 | without limitation, tangible personal property that is | ||||||
6 | purchased for incorporation into real estate within a | ||||||
7 | manufacturing facility , supplies and consumables used in a | ||||||
8 | manufacturing facility including fuels, coolants, | ||||||
9 | solvents, oils, lubricants, and adhesives, hand tools, | ||||||
10 | protective apparel, and fire and safety equipment used or | ||||||
11 | consumed within a manufacturing facility, and tangible | ||||||
12 | personal property that is used or consumed in activities | ||||||
13 | such as research and development, preproduction material | ||||||
14 | handling, receiving, quality control, inventory control, | ||||||
15 | storage, staging, and packaging for shipping and | ||||||
16 | transportation purposes. "Production related tangible | ||||||
17 | personal property" does not include (i) tangible personal | ||||||
18 | property that is used, within or without a manufacturing | ||||||
19 | facility, in sales, purchasing, accounting, fiscal | ||||||
20 | management, marketing, personnel recruitment or selection, | ||||||
21 | or landscaping or (ii) tangible personal property that is | ||||||
22 | required to be titled or registered with a department, | ||||||
23 | agency, or unit of federal, State, or local government.
| ||||||
24 | The manufacturing and assembling machinery and equipment | ||||||
25 | exemption includes production related tangible personal | ||||||
26 | property that is purchased on or after July 1, 2007 and on or |
| |||||||
| |||||||
1 | before June 30, 2008 and on or after July 1, 2019 . The | ||||||
2 | exemption for production related tangible personal property | ||||||
3 | purchased on or after July 1, 2007 and before June 30, 2008 is | ||||||
4 | subject to both of the following limitations: | ||||||
5 | (1) The maximum amount of the exemption for any one | ||||||
6 | taxpayer may not exceed 5% of the purchase price of | ||||||
7 | production related tangible personal property that is | ||||||
8 | purchased on or after July 1, 2007 and on or before June | ||||||
9 | 30, 2008. A credit under Section 3-85 of this Act may not | ||||||
10 | be earned by the purchase of production related tangible | ||||||
11 | personal property for which an exemption is received under | ||||||
12 | this Section. | ||||||
13 | (2) The maximum aggregate amount of the exemptions for | ||||||
14 | production related tangible personal property awarded | ||||||
15 | under this Act and the Use
Tax Act to all taxpayers may not | ||||||
16 | exceed $10,000,000. If the claims for the exemption exceed | ||||||
17 | $10,000,000, then the Department shall reduce the amount of | ||||||
18 | the exemption to each taxpayer on a pro rata basis. | ||||||
19 | The Department shall may adopt rules to implement and | ||||||
20 | administer the exemption for production related tangible | ||||||
21 | personal property. | ||||||
22 | The manufacturing and assembling machinery and equipment | ||||||
23 | exemption
includes the sale of materials to a purchaser who | ||||||
24 | produces exempted types
of machinery, equipment, or tools and | ||||||
25 | who rents or leases that machinery,
equipment, or tools to a | ||||||
26 | manufacturer of tangible personal property. This
exemption |
| |||||||
| |||||||
1 | also includes the sale of materials to a purchaser who | ||||||
2 | manufactures
those materials into an exempted type of | ||||||
3 | machinery, equipment, or tools
that the purchaser uses himself | ||||||
4 | or herself in the manufacturing of tangible
personal property. | ||||||
5 | The purchaser of the machinery and equipment who has an
active | ||||||
6 | resale registration number shall furnish that number to the | ||||||
7 | seller
at the time of purchase. A purchaser of the machinery, | ||||||
8 | equipment, and
tools without an active resale registration | ||||||
9 | number shall furnish to the
seller a certificate of exemption | ||||||
10 | for each transaction stating facts
establishing the exemption | ||||||
11 | for that transaction, and that certificate shall
be available | ||||||
12 | to the Department for inspection or audit. Informal
rulings, | ||||||
13 | opinions, or letters issued by the Department in response to an
| ||||||
14 | inquiry or request for an opinion from any person regarding the | ||||||
15 | coverage and
applicability of this exemption to specific | ||||||
16 | devices shall be published,
maintained as a public record,
and | ||||||
17 | made available for public inspection and copying. If the | ||||||
18 | informal
ruling, opinion, or letter contains trade secrets or | ||||||
19 | other confidential
information, where possible, the Department | ||||||
20 | shall delete that information
before publication. Whenever | ||||||
21 | informal rulings, opinions, or letters
contain a policy of | ||||||
22 | general applicability, the Department shall
formulate and | ||||||
23 | adopt that policy as a rule in accordance with the Illinois
| ||||||
24 | Administrative Procedure Act.
| ||||||
25 | The manufacturing and assembling machinery and equipment
| ||||||
26 | exemption is exempt from the provisions of Section 2-70. |
| |||||||
| |||||||
1 | (Source: P.A. 100-22, eff. 7-6-17.)
| ||||||
2 | ARTICLE 30. BUSINESS CORPORATION ACT OF 1983 | ||||||
3 | Section 30-5. The Business Corporation Act of 1983 is | ||||||
4 | amended by changing Sections 14.30, 15.35, 15.65, and 15.97 as | ||||||
5 | follows:
| ||||||
6 | (805 ILCS 5/14.30) (from Ch. 32, par. 14.30)
| ||||||
7 | Sec. 14.30.
Cumulative report of changes in issued shares | ||||||
8 | or paid-in
capital.
| ||||||
9 | (a) Each domestic corporation and each foreign corporation
| ||||||
10 | authorized to transact business in this State that effects any | ||||||
11 | change in
the number of issued shares or the amount of paid-in | ||||||
12 | capital prior to January 1, 2024 that has
not theretofore been | ||||||
13 | reported in any report other than an annual report,
interim | ||||||
14 | annual report, or final transition annual report, shall execute | ||||||
15 | and
file, in accordance with Section 1.10 of this Act, a report | ||||||
16 | with respect to
the changes in its issued shares or paid-in | ||||||
17 | capital:
| ||||||
18 | (1) that have occurred subsequent to the last day of | ||||||
19 | the third month
preceding its anniversary month in the | ||||||
20 | preceding year and prior to the
first day of the second | ||||||
21 | month immediately preceding its anniversary month
in the | ||||||
22 | current year; or
| ||||||
23 | (2) in the case of a corporation that has established |
| |||||||
| |||||||
1 | an extended
filing month, that have occurred during its | ||||||
2 | fiscal year; or
| ||||||
3 | (3) in the case of a statutory merger or consolidation | ||||||
4 | or an amendment
to the corporation's articles of | ||||||
5 | incorporation that affects the number of
issued shares or | ||||||
6 | the amount of paid-in capital,
that have
occurred between | ||||||
7 | the last day of the third month immediately preceding its
| ||||||
8 | anniversary month and the date of the merger, | ||||||
9 | consolidation, or
amendment or, in the
case of a | ||||||
10 | corporation that has established an extended filing month, | ||||||
11 | that
have occurred between the first day of its fiscal year | ||||||
12 | and the date of the
merger, consolidation, or amendment; or
| ||||||
13 | (4) in the case of a statutory merger or consolidation | ||||||
14 | or an amendment
to the corporation's articles of | ||||||
15 | incorporation that affects the number of
issued shares or | ||||||
16 | the amount of paid-in capital,
that have
occurred between | ||||||
17 | the date of the merger, consolidation, or amendment (but
| ||||||
18 | not including the merger,
consolidation, or amendment) and | ||||||
19 | the first day of the second month
immediately preceding
its | ||||||
20 | anniversary month in the current year, or in the case of a | ||||||
21 | corporation
that has established an extended filing month, | ||||||
22 | that have occurred between
the date of the merger, | ||||||
23 | consolidation or amendment (but not including the
merger, | ||||||
24 | consolidation or amendment) and the last day of
its fiscal | ||||||
25 | year.
| ||||||
26 | (b) The corporation shall file the report required under |
| |||||||
| |||||||
1 | subsection
(a) not later than (i) the time its annual report is | ||||||
2 | required to be filed in
1992 and in each subsequent year and | ||||||
3 | (ii) not later than the time of filing
the articles of merger, | ||||||
4 | consolidation, or amendment to the articles of
incorporation | ||||||
5 | that affects the number of issued shares or the amount of | ||||||
6 | paid-in
capital of a domestic corporation or the certified copy | ||||||
7 | of
merger
of a foreign corporation.
| ||||||
8 | (c) The report shall net decreases against increases that | ||||||
9 | occur during
the same taxable period. The report shall set | ||||||
10 | forth:
| ||||||
11 | (1) The name of the corporation and the state or | ||||||
12 | country under the laws
of which it is organized.
| ||||||
13 | (2) A statement of the aggregate number of shares which | ||||||
14 | the corporation
has authority to issue, itemized by classes | ||||||
15 | and series, if any, within a class.
| ||||||
16 | (3) A statement of the aggregate number of issued | ||||||
17 | shares as last
reported to the Secretary of State in any | ||||||
18 | document required or permitted by
this Act to be filed, | ||||||
19 | other than an annual report, interim annual report or
final | ||||||
20 | transition annual report, itemized by classes and series, | ||||||
21 | if any,
within a class.
| ||||||
22 | (4) A statement, expressed in dollars, of the amount of | ||||||
23 | paid-in capital
of the corporation as last reported to the | ||||||
24 | Secretary of State in any
document required or permitted by | ||||||
25 | this Act to be filed, other than an
annual report, interim | ||||||
26 | annual report or final transition annual report.
|
| |||||||
| |||||||
1 | (5) A statement, if applicable, of the aggregate number | ||||||
2 | of shares
issued by the corporation not theretofore | ||||||
3 | reported to the Secretary of
State as having been issued, | ||||||
4 | and a statement, expressed in dollars, of the
value of the | ||||||
5 | entire consideration received, less expenses, including
| ||||||
6 | commissions, paid or incurred in connection with the | ||||||
7 | issuance, for, or on
account of, the issuance of the | ||||||
8 | shares, itemized by
classes, and series, if any, within a | ||||||
9 | class; and in the case of shares
issued as a share | ||||||
10 | dividend, the amount added or transferred to the paid-in
| ||||||
11 | capital of the corporation for, or on account of, the | ||||||
12 | issuance of the
shares; provided, however, that the report | ||||||
13 | shall also include the date of
each issuance made prior to | ||||||
14 | the current reporting period, and the number of
issued | ||||||
15 | shares and consideration received in each case.
| ||||||
16 | (6) A statement, if applicable, expressed in dollars, | ||||||
17 | of the amount
added or transferred to paid-in capital of | ||||||
18 | the corporation without the
issuance of shares; provided, | ||||||
19 | however, that the report shall also include
the date of | ||||||
20 | each increase made prior to the current reporting period, | ||||||
21 | and
the consideration received in each case.
| ||||||
22 | (7) In case of an exchange or reclassification of | ||||||
23 | issued shares
resulting in an increase in the amount of | ||||||
24 | paid-in capital, a statement of
the manner in which it was | ||||||
25 | effected, and a statement, expressed in dollars, of
the | ||||||
26 | amount added or transferred to the paid-in capital of the |
| |||||||
| |||||||
1 | corporation
as a result thereof, except any portion thereof | ||||||
2 | reported under any other
subsection of this Section as a | ||||||
3 | part of the consideration received by the
corporation for, | ||||||
4 | or on account of, its issued shares; provided, however,
| ||||||
5 | that the report shall also include the date of each | ||||||
6 | exchange or
reclassification made prior to the current | ||||||
7 | reporting period and the
consideration received in each | ||||||
8 | case.
| ||||||
9 | (8) If the consideration received for the issuance of | ||||||
10 | any shares not
theretofore reported as having been issued | ||||||
11 | consists of labor or services
performed or of property, | ||||||
12 | other than cash, then a statement, expressed in
dollars, of | ||||||
13 | the value of that consideration as fixed by the board of
| ||||||
14 | directors.
| ||||||
15 | (9) In the case of a cancellation of shares or a | ||||||
16 | reduction in paid-in
capital made pursuant to Section 9.20, | ||||||
17 | the aggregate
reduction in paid-in capital;
provided, | ||||||
18 | however, that the report shall also include the date of | ||||||
19 | each
reduction made prior to the current reporting period.
| ||||||
20 | (10) A statement of the aggregate number of issued | ||||||
21 | shares itemized by
classes and series, if any, within a | ||||||
22 | class, after giving effect to the
changes reported.
| ||||||
23 | (11) A statement, expressed in dollars, of the amount | ||||||
24 | of paid-in capital
of the corporation after giving effect | ||||||
25 | to the changes reported.
| ||||||
26 | (d) No additional license fees or franchise taxes shall be |
| |||||||
| |||||||
1 | payable
upon the filing of the report to the extent that | ||||||
2 | license fees or franchise
taxes shall have been previously paid | ||||||
3 | by the corporation in respect of
shares previously issued which | ||||||
4 | are being exchanged for the shares the
issuance of which is | ||||||
5 | being reported, provided those facts are shown in
the report.
| ||||||
6 | (e) The report shall be made on forms prescribed and | ||||||
7 | furnished by the
Secretary of State.
| ||||||
8 | (f) Until the report under this Section or a report under | ||||||
9 | Section 14.25
shall have been filed in the Office of the | ||||||
10 | Secretary of State showing a
reduction in paid-in capital, the | ||||||
11 | basis of the annual franchise tax payable
by the corporation | ||||||
12 | shall not be reduced, provided, however, in no event
shall the | ||||||
13 | annual franchise tax for any taxable year be reduced if the
| ||||||
14 | report is not filed prior to the first day of the anniversary | ||||||
15 | month or, in
the case of a corporation which has established an | ||||||
16 | extended filing month,
the extended filing month of the | ||||||
17 | corporation of that taxable year and
before payment of its | ||||||
18 | annual franchise tax.
| ||||||
19 | (Source: P.A. 90-421, eff. 1-1-98.)
| ||||||
20 | (805 ILCS 5/15.35) (from Ch. 32, par. 15.35)
| ||||||
21 | Sec. 15.35. Franchise taxes payable by domestic | ||||||
22 | corporations. For the privilege of exercising its franchises in | ||||||
23 | this State, each
domestic corporation shall pay to the | ||||||
24 | Secretary of State the following
franchise taxes, computed on | ||||||
25 | the basis, at the rates and for the periods
prescribed in this |
| |||||||
| |||||||
1 | Act:
| ||||||
2 | (a) An initial franchise tax at the time of filing its | ||||||
3 | first report of
issuance of shares.
| ||||||
4 | (b) An additional franchise tax at the time of filing (1) a | ||||||
5 | report of
the issuance of additional shares, or (2) a report of | ||||||
6 | an increase in paid-in
capital without the issuance of shares, | ||||||
7 | or (3) an amendment to the articles
of incorporation or a | ||||||
8 | report of cumulative changes in paid-in capital,
whenever any | ||||||
9 | amendment or such report discloses an increase in its paid-in
| ||||||
10 | capital over the amount thereof last reported in any document, | ||||||
11 | other than
an annual report, interim annual report or final | ||||||
12 | transition annual report
required by this Act to be filed in | ||||||
13 | the office of the Secretary of State.
| ||||||
14 | (c) An additional franchise tax at the time of filing a | ||||||
15 | report of paid-in
capital following a statutory merger or | ||||||
16 | consolidation, which discloses that
the paid-in capital of the | ||||||
17 | surviving or new corporation immediately after
the merger or | ||||||
18 | consolidation is greater than the sum of the paid-in capital
of | ||||||
19 | all of the merged or consolidated corporations as last reported
| ||||||
20 | by them in any documents, other than annual reports, required | ||||||
21 | by this Act
to be filed in the office of the Secretary of | ||||||
22 | State; and in addition, the
surviving or new corporation shall | ||||||
23 | be liable for a further additional franchise
tax on the paid-in | ||||||
24 | capital of each of the merged or consolidated
corporations as | ||||||
25 | last reported by them in any document, other than an annual
| ||||||
26 | report, required by this Act to be filed with the Secretary of |
| |||||||
| |||||||
1 | State from
their taxable year end to the next succeeding | ||||||
2 | anniversary month or, in
the case of a corporation which has | ||||||
3 | established an extended filing month,
the extended filing month | ||||||
4 | of the surviving or new corporation; however if
the taxable | ||||||
5 | year ends within the 2 month period immediately preceding the
| ||||||
6 | anniversary month or, in the case of a corporation which has | ||||||
7 | established an
extended filing month, the extended filing month | ||||||
8 | of the surviving or new
corporation the tax will be computed to | ||||||
9 | the anniversary month or, in the
case of a corporation which | ||||||
10 | has established an extended filing month, the
extended filing | ||||||
11 | month of the surviving or new corporation in the next
| ||||||
12 | succeeding calendar year.
| ||||||
13 | (d) An annual franchise tax payable each year with the | ||||||
14 | annual report
which the corporation is required by this Act to | ||||||
15 | file.
| ||||||
16 | (e) On or after January 1, 2020 and prior to January 1, | ||||||
17 | 2021, the first $30 in liability is exempt from the tax imposed | ||||||
18 | under this Section. On or after January 1, 2021 and prior to | ||||||
19 | January 1, 2022, the first $1,000 in liability is exempt from | ||||||
20 | the tax imposed under this Section. On or after January 1, 2022 | ||||||
21 | and prior to January 1, 2023, the first $10,000 in liability is | ||||||
22 | exempt from the tax imposed under this Section. On or after | ||||||
23 | January 1, 2023 and prior to January 1, 2024, the first | ||||||
24 | $100,000 in liability is exempt from the tax imposed under this | ||||||
25 | Section. The provisions of this Section shall not require the | ||||||
26 | payment of any franchise tax that would otherwise have been due |
| |||||||
| |||||||
1 | and payable on or after January 1, 2024. There shall be no | ||||||
2 | refunds or proration of franchise tax for any taxes due and | ||||||
3 | payable on or after January 1, 2024 on the basis that a portion | ||||||
4 | of the corporation's taxable year extends beyond January 1, | ||||||
5 | 2024. This amendatory Act of the 101st General Assembly shall | ||||||
6 | not affect any right accrued or established, or any liability | ||||||
7 | or penalty incurred prior to January 1, 2024. | ||||||
8 | (f) This Section is repealed on December 31, 2025. | ||||||
9 | (Source: P.A. 86-985.)
| ||||||
10 | (805 ILCS 5/15.65) (from Ch. 32, par. 15.65)
| ||||||
11 | Sec. 15.65. Franchise taxes payable by foreign | ||||||
12 | corporations. For the privilege of exercising its authority to | ||||||
13 | transact such business
in this State as set out in its | ||||||
14 | application therefor or any amendment
thereto, each foreign | ||||||
15 | corporation shall pay to the Secretary of State the
following | ||||||
16 | franchise taxes, computed on the basis, at the rates and for | ||||||
17 | the
periods prescribed in this Act:
| ||||||
18 | (a) An initial franchise tax at the time of filing its | ||||||
19 | application for
authority to transact business in this State.
| ||||||
20 | (b) An additional franchise tax at the time of filing (1) a | ||||||
21 | report of
the issuance of additional shares, or (2) a report of | ||||||
22 | an increase in paid-in
capital without the issuance of shares, | ||||||
23 | or (3) a report of cumulative
changes in paid-in capital or a | ||||||
24 | report of an exchange or reclassification
of shares, whenever | ||||||
25 | any such report discloses an increase in its paid-in
capital |
| |||||||
| |||||||
1 | over the amount thereof last reported in any document, other | ||||||
2 | than
an annual report, interim annual report or final | ||||||
3 | transition annual report,
required by this Act to be filed in | ||||||
4 | the office of the Secretary of State.
| ||||||
5 | (c) Whenever the corporation shall be a party to a | ||||||
6 | statutory merger and
shall be the surviving corporation, an | ||||||
7 | additional franchise tax at the time
of filing its report | ||||||
8 | following merger, if such report discloses that the
amount | ||||||
9 | represented in this State of its paid-in capital immediately | ||||||
10 | after
the merger is greater than the aggregate of the amounts | ||||||
11 | represented in this
State of the paid-in capital of such of the | ||||||
12 | merged corporations as were
authorized to transact business in | ||||||
13 | this State at the time of the merger, as
last reported by them | ||||||
14 | in any documents, other than annual reports, required
by this | ||||||
15 | Act to be filed in the office of the Secretary of State; and in
| ||||||
16 | addition, the surviving corporation shall be liable for a | ||||||
17 | further
additional franchise tax on the paid-in capital of each | ||||||
18 | of the merged
corporations as last reported by them in any | ||||||
19 | document, other than an annual
report, required by this Act to | ||||||
20 | be filed with the Secretary
of State, from their taxable year | ||||||
21 | end to the next succeeding anniversary
month or, in the case of | ||||||
22 | a corporation which has established an extended
filing month, | ||||||
23 | the extended filing month of the surviving corporation;
however | ||||||
24 | if the taxable year ends within the 2 month period immediately
| ||||||
25 | preceding the anniversary month or the extended filing month of | ||||||
26 | the
surviving corporation, the tax will be computed to the |
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1 | anniversary or,
extended filing month of the surviving | ||||||
2 | corporation in the next succeeding
calendar year.
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3 | (d) An annual franchise tax payable each year with any
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4 | annual report which the corporation is required by this Act to | ||||||
5 | file.
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6 | (e) On or after January 1, 2020 and prior to January 1, | ||||||
7 | 2021, the first $30 in liability is exempt from the tax imposed | ||||||
8 | under this Section. On or after January 1, 2021 and prior to | ||||||
9 | January 1, 2022, the first $1,000 in liability is exempt from | ||||||
10 | the tax imposed under this Section. On or after January 1, 2022 | ||||||
11 | and prior to January 1, 2023, the first $10,000 in liability is | ||||||
12 | exempt from the tax imposed under this Section. On or after | ||||||
13 | January 1, 2023 and prior to January 1, 2024, the first | ||||||
14 | $100,000 in liability is exempt from the tax imposed under this | ||||||
15 | Section. The provisions of this Section shall not require the | ||||||
16 | payment of any franchise tax that would otherwise have been due | ||||||
17 | and payable on or after January 1, 2024. There shall be no | ||||||
18 | refunds or proration of franchise tax for any taxes due and | ||||||
19 | payable on or after January 1, 2024 on the basis that a portion | ||||||
20 | of the corporation's taxable year extends beyond January 1, | ||||||
21 | 2024. This amendatory Act of the 101st General Assembly shall | ||||||
22 | not affect any right accrued or established, or any liability | ||||||
23 | or penalty incurred prior to January 1, 2024. | ||||||
24 | (f) This Section is repealed on December 31, 2024. | ||||||
25 | (Source: P.A. 92-33, eff. 7-1-01.)
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1 | (805 ILCS 5/15.97) (from Ch. 32, par. 15.97)
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2 | Sec. 15.97. Corporate Franchise Tax Refund Fund.
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3 | (a) Beginning July 1, 1993, a percentage of the amounts | ||||||
4 | collected
under Sections 15.35, 15.45, 15.65, and 15.75 of this | ||||||
5 | Act shall be
deposited into the Corporate Franchise Tax Refund | ||||||
6 | Fund, a special Fund
hereby created in the State treasury. From | ||||||
7 | July 1, 1993, until December 31,
1994, there shall be deposited | ||||||
8 | into the Fund 3% of the amounts received
under those Sections. | ||||||
9 | Beginning January 1, 1995, and for each fiscal year
beginning | ||||||
10 | thereafter, 2% of the amounts collected under those Sections
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11 | during the preceding fiscal year shall be deposited into the | ||||||
12 | Fund.
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13 | (b) Beginning July 1, 1993, moneys in the Fund shall be | ||||||
14 | expended
exclusively for the purpose of paying refunds payable | ||||||
15 | because of overpayment
of franchise taxes, penalties, or | ||||||
16 | interest under Sections 13.70, 15.35,
15.45, 15.65, 15.75, and | ||||||
17 | 16.05 of this
Act and making transfers authorized under this | ||||||
18 | Section. Refunds in
accordance with the provisions of | ||||||
19 | subsections (f) and (g) of Section 1.15
and Section 1.17 of | ||||||
20 | this Act may be made from the Fund only to the extent that
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21 | amounts collected under Sections 15.35, 15.45, 15.65, and 15.75 | ||||||
22 | of this Act
have been deposited in the Fund and remain | ||||||
23 | available. On or before August 31 of each year, the balance in | ||||||
24 | the Fund in excess of $100,000 shall be transferred to the | ||||||
25 | General Revenue Fund. Notwithstanding the provisions of this | ||||||
26 | subsection, for the period commencing on or after July 1, 2022, |
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1 | amounts in the fund shall not be transferred to the General | ||||||
2 | Revenue Fund and shall be used to pay refunds in accordance | ||||||
3 | with the provisions of this Act. Within a reasonable time after | ||||||
4 | December 31, 2022, the Secretary of State shall direct and the | ||||||
5 | Comptroller shall order transferred to the General Revenue Fund | ||||||
6 | all amounts remaining in the fund.
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7 | (c) This Act shall constitute an irrevocable and continuing
| ||||||
8 | appropriation from the Corporate Franchise Tax Refund Fund for | ||||||
9 | the purpose
of paying refunds upon the order of the Secretary | ||||||
10 | of State in accordance
with the provisions of this Section.
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11 | (d) This Section is repealed on December 31, 2022. | ||||||
12 | (Source: P.A. 99-620, eff. 1-1-17 .)
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13 | ARTICLE 99. EFFECTIVE DATE | ||||||
14 | Section 999. Effective date. This Act takes effect upon | ||||||
15 | becoming law.
|