INC TX-UNION DUES

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3280

Introduced 2/18/2025, by Rep. Matt Hanson

SYNOPSIS AS INTRODUCED:

35 ILCS 5/203

from Ch. 120, par. 2-203

Amends the Illinois Income Tax Act. Creates a deduction for the full
amount of union dues paid by the taxpayer during the taxable year if the
taxpayer was not allowed a federal deduction under the Internal Revenue
Code. Provides that, if any amount of union dues representing federal
miscellaneous itemized deductions was allowed as a federal deduction, then
the amount allowed as an Illinois deduction shall be a percentage of the
union dues disallowed under the Internal Revenue Code. Provides that the
deduction is exempt from the Act's automatic sunset provision. Effective
immediately.
LRB104 11474 HLH 21563 b

A BILL FOR

HB3280
LRB104 11474 HLH 21563 b
1

AN ACT concerning revenue.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Illinois Income Tax Act is amended by
5
changing Section 203 as follows:

6

(35 ILCS 5/203)

(from Ch. 120, par. 2-203)
7

Sec. 203.
Base income defined.
8

(a) Individuals.
9

(1) In general. In the case of an individual, base
10

income means an amount equal to the taxpayer's adjusted
11

gross income for the taxable year as modified by paragraph
12

(2).
13

(2) Modifications. The adjusted gross income referred
14

to in paragraph (1) shall be modified by adding thereto
15

the sum of the following amounts:
16

(A) An amount equal to all amounts paid or accrued
17

to the taxpayer as interest or dividends during the
18

taxable year to the extent excluded from gross income
19

in the computation of adjusted gross income, except
20

stock dividends of qualified public utilities
21

described in Section 305(e) of the Internal Revenue
22

Code;
23

(B) An amount equal to the amount of tax imposed by

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LRB104 11474 HLH 21563 b
1

this Act to the extent deducted from gross income in
2

the computation of adjusted gross income for the
3

taxable year;
4

(C) An amount equal to the amount received during
5

the taxable year as a recovery or refund of real
6

property taxes paid with respect to the taxpayer's
7

principal residence under the Revenue Act of 1939 and
8

for which a deduction was previously taken under
9

subparagraph (L) of this paragraph (2) prior to July
10

1, 1991, the retrospective application date of Article
11

4 of Public Act 87-17. In the case of multi-unit or
12

multi-use structures and farm dwellings, the taxes on
13

the taxpayer's principal residence shall be that
14

portion of the total taxes for the entire property
15

which is attributable to such principal residence;
16

(D) An amount equal to the amount of the capital
17

gain deduction allowable under the Internal Revenue
18

Code, to the extent deducted from gross income in the
19

computation of adjusted gross income;
20

(D-5) An amount, to the extent not included in
21

adjusted gross income, equal to the amount of money
22

withdrawn by the taxpayer in the taxable year from a
23

medical care savings account and the interest earned
24

on the account in the taxable year of a withdrawal
25

pursuant to subsection (b) of Section 20 of the
26

Medical Care Savings Account Act or subsection (b) of

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1

Section 20 of the Medical Care Savings Account Act of
2

2000;
3

(D-10) For taxable years ending after December 31,
4

1997, an amount equal to any eligible remediation
5

costs that the individual deducted in computing
6

adjusted gross income and for which the individual
7

claims a credit under subsection (l) of Section 201;
8

(D-15) For taxable years 2001 and thereafter, an
9

amount equal to the bonus depreciation deduction taken
10

on the taxpayer's federal income tax return for the
11

taxable year under subsection (k) of Section 168 of
12

the Internal Revenue Code;
13

(D-16) If the taxpayer sells, transfers, abandons,
14

or otherwise disposes of property for which the
15

taxpayer was required in any taxable year to make an
16

addition modification under subparagraph (D-15), then
17

an amount equal to the aggregate amount of the
18

deductions taken in all taxable years under
19

subparagraph (Z) with respect to that property.
20

If the taxpayer continues to own property through
21

the last day of the last tax year for which a
22

subtraction is allowed with respect to that property
23

under subparagraph (Z) and for which the taxpayer was
24

allowed in any taxable year to make a subtraction
25

modification under subparagraph (Z), then an amount
26

equal to that subtraction modification.

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1

The taxpayer is required to make the addition
2

modification under this subparagraph only once with
3

respect to any one piece of property;
4

(D-17) An amount equal to the amount otherwise
5

allowed as a deduction in computing base income for
6

interest paid, accrued, or incurred, directly or
7

indirectly, (i) for taxable years ending on or after
8

December 31, 2004, to a foreign person who would be a
9

member of the same unitary business group but for the
10

fact that foreign person's business activity outside
11

the United States is 80% or more of the foreign
12

person's total business activity and (ii) for taxable
13

years ending on or after December 31, 2008, to a person
14

who would be a member of the same unitary business
15

group but for the fact that the person is prohibited
16

under Section 1501(a)(27) from being included in the
17

unitary business group because he or she is ordinarily
18

required to apportion business income under different
19

subsections of Section 304. The addition modification
20

required by this subparagraph shall be reduced to the
21

extent that dividends were included in base income of
22

the unitary group for the same taxable year and
23

received by the taxpayer or by a member of the
24

taxpayer's unitary business group (including amounts
25

included in gross income under Sections 951 through
26

964 of the Internal Revenue Code and amounts included

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LRB104 11474 HLH 21563 b
1

in gross income under Section 78 of the Internal
2

Revenue Code) with respect to the stock of the same
3

person to whom the interest was paid, accrued, or
4

incurred.
5

This paragraph shall not apply to the following:
6

(i) an item of interest paid, accrued, or
7

incurred, directly or indirectly, to a person who
8

is subject in a foreign country or state, other
9

than a state which requires mandatory unitary
10

reporting, to a tax on or measured by net income
11

with respect to such interest; or
12

(ii) an item of interest paid, accrued, or
13

incurred, directly or indirectly, to a person if
14

the taxpayer can establish, based on a
15

preponderance of the evidence, both of the
16

following:
17

(a) the person, during the same taxable
18

year, paid, accrued, or incurred, the interest
19

to a person that is not a related member, and
20

(b) the transaction giving rise to the
21

interest expense between the taxpayer and the
22

person did not have as a principal purpose the
23

avoidance of Illinois income tax, and is paid
24

pursuant to a contract or agreement that
25

reflects an arm's-length interest rate and
26

terms; or

HB3280
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LRB104 11474 HLH 21563 b
1

(iii) the taxpayer can establish, based on
2

clear and convincing evidence, that the interest
3

paid, accrued, or incurred relates to a contract
4

or agreement entered into at arm's-length rates
5

and terms and the principal purpose for the
6

payment is not federal or Illinois tax avoidance;
7

or
8

(iv) an item of interest paid, accrued, or
9

incurred, directly or indirectly, to a person if
10

the taxpayer establishes by clear and convincing
11

evidence that the adjustments are unreasonable; or
12

if the taxpayer and the Director agree in writing
13

to the application or use of an alternative method
14

of apportionment under Section 304(f).
15

Nothing in this subsection shall preclude the
16

Director from making any other adjustment
17

otherwise allowed under Section 404 of this Act
18

for any tax year beginning after the effective
19

date of this amendment provided such adjustment is
20

made pursuant to regulation adopted by the
21

Department and such regulations provide methods
22

and standards by which the Department will utilize
23

its authority under Section 404 of this Act;
24

(D-18) An amount equal to the amount of intangible
25

expenses and costs otherwise allowed as a deduction in
26

computing base income, and that were paid, accrued, or

HB3280
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LRB104 11474 HLH 21563 b
1

incurred, directly or indirectly, (i) for taxable
2

years ending on or after December 31, 2004, to a
3

foreign person who would be a member of the same
4

unitary business group but for the fact that the
5

foreign person's business activity outside the United
6

States is 80% or more of that person's total business
7

activity and (ii) for taxable years ending on or after
8

December 31, 2008, to a person who would be a member of
9

the same unitary business group but for the fact that
10

the person is prohibited under Section 1501(a)(27)
11

from being included in the unitary business group
12

because he or she is ordinarily required to apportion
13

business income under different subsections of Section
14

304. The addition modification required by this
15

subparagraph shall be reduced to the extent that
16

dividends were included in base income of the unitary
17

group for the same taxable year and received by the
18

taxpayer or by a member of the taxpayer's unitary
19

business group (including amounts included in gross
20

income under Sections 951 through 964 of the Internal
21

Revenue Code and amounts included in gross income
22

under Section 78 of the Internal Revenue Code) with
23

respect to the stock of the same person to whom the
24

intangible expenses and costs were directly or
25

indirectly paid, incurred, or accrued. The preceding
26

sentence does not apply to the extent that the same

HB3280
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LRB104 11474 HLH 21563 b
1

dividends caused a reduction to the addition
2

modification required under Section 203(a)(2)(D-17) of
3

this Act. As used in this subparagraph, the term
4

"intangible expenses and costs" includes (1) expenses,
5

losses, and costs for, or related to, the direct or
6

indirect acquisition, use, maintenance or management,
7

ownership, sale, exchange, or any other disposition of
8

intangible property; (2) losses incurred, directly or
9

indirectly, from factoring transactions or discounting
10

transactions; (3) royalty, patent, technical, and
11

copyright fees; (4) licensing fees; and (5) other
12

similar expenses and costs. For purposes of this
13

subparagraph, "intangible property" includes patents,
14

patent applications, trade names, trademarks, service
15

marks, copyrights, mask works, trade secrets, and
16

similar types of intangible assets.
17

This paragraph shall not apply to the following:
18

(i) any item of intangible expenses or costs
19

paid, accrued, or incurred, directly or
20

indirectly, from a transaction with a person who
21

is subject in a foreign country or state, other
22

than a state which requires mandatory unitary
23

reporting, to a tax on or measured by net income
24

with respect to such item; or
25

(ii) any item of intangible expense or cost
26

paid, accrued, or incurred, directly or

HB3280
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LRB104 11474 HLH 21563 b
1

indirectly, if the taxpayer can establish, based
2

on a preponderance of the evidence, both of the
3

following:
4

(a) the person during the same taxable
5

year paid, accrued, or incurred, the
6

intangible expense or cost to a person that is
7

not a related member, and
8

(b) the transaction giving rise to the
9

intangible expense or cost between the
10

taxpayer and the person did not have as a
11

principal purpose the avoidance of Illinois
12

income tax, and is paid pursuant to a contract
13

or agreement that reflects arm's-length terms;
14

or
15

(iii) any item of intangible expense or cost
16

paid, accrued, or incurred, directly or
17

indirectly, from a transaction with a person if
18

the taxpayer establishes by clear and convincing
19

evidence, that the adjustments are unreasonable;
20

or if the taxpayer and the Director agree in
21

writing to the application or use of an
22

alternative method of apportionment under Section
23

304(f);
24

Nothing in this subsection shall preclude the
25

Director from making any other adjustment
26

otherwise allowed under Section 404 of this Act

HB3280
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LRB104 11474 HLH 21563 b
1

for any tax year beginning after the effective
2

date of this amendment provided such adjustment is
3

made pursuant to regulation adopted by the
4

Department and such regulations provide methods
5

and standards by which the Department will utilize
6

its authority under Section 404 of this Act;
7

(D-19) For taxable years ending on or after
8

December 31, 2008, an amount equal to the amount of
9

insurance premium expenses and costs otherwise allowed
10

as a deduction in computing base income, and that were
11

paid, accrued, or incurred, directly or indirectly, to
12

a person who would be a member of the same unitary
13

business group but for the fact that the person is
14

prohibited under Section 1501(a)(27) from being
15

included in the unitary business group because he or
16

she is ordinarily required to apportion business
17

income under different subsections of Section 304. The
18

addition modification required by this subparagraph
19

shall be reduced to the extent that dividends were
20

included in base income of the unitary group for the
21

same taxable year and received by the taxpayer or by a
22

member of the taxpayer's unitary business group
23

(including amounts included in gross income under
24

Sections 951 through 964 of the Internal Revenue Code
25

and amounts included in gross income under Section 78
26

of the Internal Revenue Code) with respect to the

HB3280
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LRB104 11474 HLH 21563 b
1

stock of the same person to whom the premiums and costs
2

were directly or indirectly paid, incurred, or
3

accrued. The preceding sentence does not apply to the
4

extent that the same dividends caused a reduction to
5

the addition modification required under Section
6

203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this
7

Act;
8

(D-20) For taxable years beginning on or after
9

January 1, 2002 and ending on or before December 31,
10

2006, in the case of a distribution from a qualified
11

tuition program under Section 529 of the Internal
12

Revenue Code, other than (i) a distribution from a
13

College Savings Pool created under Section 16.5 of the
14

State Treasurer Act or (ii) a distribution from the
15

Illinois Prepaid Tuition Trust Fund, an amount equal
16

to the amount excluded from gross income under Section
17

529(c)(3)(B). For taxable years beginning on or after
18

January 1, 2007, in the case of a distribution from a
19

qualified tuition program under Section 529 of the
20

Internal Revenue Code, other than (i) a distribution
21

from a College Savings Pool created under Section 16.5
22

of the State Treasurer Act, (ii) a distribution from
23

the Illinois Prepaid Tuition Trust Fund, or (iii) a
24

distribution from a qualified tuition program under
25

Section 529 of the Internal Revenue Code that (I)
26

adopts and determines that its offering materials

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1

comply with the College Savings Plans Network's
2

disclosure principles and (II) has made reasonable
3

efforts to inform in-state residents of the existence
4

of in-state qualified tuition programs by informing
5

Illinois residents directly and, where applicable, to
6

inform financial intermediaries distributing the
7

program to inform in-state residents of the existence
8

of in-state qualified tuition programs at least
9

annually, an amount equal to the amount excluded from
10

gross income under Section 529(c)(3)(B).
11

For the purposes of this subparagraph (D-20), a
12

qualified tuition program has made reasonable efforts
13

if it makes disclosures (which may use the term
14

"in-state program" or "in-state plan" and need not
15

specifically refer to Illinois or its qualified
16

programs by name) (i) directly to prospective
17

participants in its offering materials or makes a
18

public disclosure, such as a website posting; and (ii)
19

where applicable, to intermediaries selling the
20

out-of-state program in the same manner that the
21

out-of-state program distributes its offering
22

materials;
23

(D-20.5) For taxable years beginning on or after
24

January 1, 2018, in the case of a distribution from a
25

qualified ABLE program under Section 529A of the
26

Internal Revenue Code, other than a distribution from

HB3280
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LRB104 11474 HLH 21563 b
1

a qualified ABLE program created under Section 16.6 of
2

the State Treasurer Act, an amount equal to the amount
3

excluded from gross income under Section 529A(c)(1)(B)
4

of the Internal Revenue Code;
5

(D-21) For taxable years beginning on or after
6

January 1, 2007, in the case of transfer of moneys from
7

a qualified tuition program under Section 529 of the
8

Internal Revenue Code that is administered by the
9

State to an out-of-state program, an amount equal to
10

the amount of moneys previously deducted from base
11

income under subsection (a)(2)(Y) of this Section;
12

(D-21.5) For taxable years beginning on or after
13

January 1, 2018, in the case of the transfer of moneys
14

from a qualified tuition program under Section 529 or
15

a qualified ABLE program under Section 529A of the
16

Internal Revenue Code that is administered by this
17

State to an ABLE account established under an
18

out-of-state ABLE account program, an amount equal to
19

the contribution component of the transferred amount
20

that was previously deducted from base income under
21

subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
22

Section;
23

(D-22) For taxable years beginning on or after
24

January 1, 2009, and prior to January 1, 2018, in the
25

case of a nonqualified withdrawal or refund of moneys
26

from a qualified tuition program under Section 529 of

HB3280
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LRB104 11474 HLH 21563 b
1

the Internal Revenue Code administered by the State
2

that is not used for qualified expenses at an eligible
3

education institution, an amount equal to the
4

contribution component of the nonqualified withdrawal
5

or refund that was previously deducted from base
6

income under subsection (a)(2)(y) of this Section,
7

provided that the withdrawal or refund did not result
8

from the beneficiary's death or disability. For
9

taxable years beginning on or after January 1, 2018:
10

(1) in the case of a nonqualified withdrawal or
11

refund, as defined under Section 16.5 of the State
12

Treasurer Act, of moneys from a qualified tuition
13

program under Section 529 of the Internal Revenue Code
14

administered by the State, an amount equal to the
15

contribution component of the nonqualified withdrawal
16

or refund that was previously deducted from base
17

income under subsection (a)(2)(Y) of this Section, and
18

(2) in the case of a nonqualified withdrawal or refund
19

from a qualified ABLE program under Section 529A of
20

the Internal Revenue Code administered by the State
21

that is not used for qualified disability expenses, an
22

amount equal to the contribution component of the
23

nonqualified withdrawal or refund that was previously
24

deducted from base income under subsection (a)(2)(HH)
25

of this Section;
26

(D-23) An amount equal to the credit allowable to

HB3280
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LRB104 11474 HLH 21563 b
1

the taxpayer under Section 218(a) of this Act,
2

determined without regard to Section 218(c) of this
3

Act;
4

(D-24) For taxable years ending on or after
5

December 31, 2017, an amount equal to the deduction
6

allowed under Section 199 of the Internal Revenue Code
7

for the taxable year;
8

(D-25) In the case of a resident, an amount equal
9

to the amount of tax for which a credit is allowed
10

pursuant to Section 201(p)(7) of this Act;
11

and by deducting from the total so obtained the sum of the
12

following amounts:
13

(E) For taxable years ending before December 31,
14

2001, any amount included in such total in respect of
15

any compensation (including but not limited to any
16

compensation paid or accrued to a serviceman while a
17

prisoner of war or missing in action) paid to a
18

resident by reason of being on active duty in the Armed
19

Forces of the United States and in respect of any
20

compensation paid or accrued to a resident who as a
21

governmental employee was a prisoner of war or missing
22

in action, and in respect of any compensation paid to a
23

resident in 1971 or thereafter for annual training
24

performed pursuant to Sections 502 and 503, Title 32,
25

United States Code as a member of the Illinois
26

National Guard or, beginning with taxable years ending

HB3280
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LRB104 11474 HLH 21563 b
1

on or after December 31, 2007, the National Guard of
2

any other state. For taxable years ending on or after
3

December 31, 2001, any amount included in such total
4

in respect of any compensation (including but not
5

limited to any compensation paid or accrued to a
6

serviceman while a prisoner of war or missing in
7

action) paid to a resident by reason of being a member
8

of any component of the Armed Forces of the United
9

States and in respect of any compensation paid or
10

accrued to a resident who as a governmental employee
11

was a prisoner of war or missing in action, and in
12

respect of any compensation paid to a resident in 2001
13

or thereafter by reason of being a member of the
14

Illinois National Guard or, beginning with taxable
15

years ending on or after December 31, 2007, the
16

National Guard of any other state. The provisions of
17

this subparagraph (E) are exempt from the provisions
18

of Section 250;
19

(F) An amount equal to all amounts included in
20

such total pursuant to the provisions of Sections
21

402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
22

408 of the Internal Revenue Code, or included in such
23

total as distributions under the provisions of any
24

retirement or disability plan for employees of any
25

governmental agency or unit, or retirement payments to
26

retired partners, which payments are excluded in

HB3280
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LRB104 11474 HLH 21563 b
1

computing net earnings from self employment by Section
2

1402 of the Internal Revenue Code and regulations
3

adopted pursuant thereto;
4

(G) The valuation limitation amount;
5

(H) An amount equal to the amount of any tax
6

imposed by this Act which was refunded to the taxpayer
7

and included in such total for the taxable year;
8

(I) An amount equal to all amounts included in
9

such total pursuant to the provisions of Section 111
10

of the Internal Revenue Code as a recovery of items
11

previously deducted from adjusted gross income in the
12

computation of taxable income;
13

(J) An amount equal to those dividends included in
14

such total which were paid by a corporation which
15

conducts business operations in a River Edge
16

Redevelopment Zone or zones created under the River
17

Edge Redevelopment Zone Act, and conducts
18

substantially all of its operations in a River Edge
19

Redevelopment Zone or zones. This subparagraph (J) is
20

exempt from the provisions of Section 250;
21

(K) An amount equal to those dividends included in
22

such total that were paid by a corporation that
23

conducts business operations in a federally designated
24

Foreign Trade Zone or Sub-Zone and that is designated
25

a High Impact Business located in Illinois; provided
26

that dividends eligible for the deduction provided in

HB3280
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LRB104 11474 HLH 21563 b
1

subparagraph (J) of paragraph (2) of this subsection
2

shall not be eligible for the deduction provided under
3

this subparagraph (K);
4

(L) For taxable years ending after December 31,
5

1983, an amount equal to all social security benefits
6

and railroad retirement benefits included in such
7

total pursuant to Sections 72(r) and 86 of the
8

Internal Revenue Code;
9

(M) With the exception of any amounts subtracted
10

under subparagraph (N), an amount equal to the sum of
11

all amounts disallowed as deductions by (i) Sections
12

171(a)(2) and 265(a)(2) of the Internal Revenue Code,
13

and all amounts of expenses allocable to interest and
14

disallowed as deductions by Section 265(a)(1) of the
15

Internal Revenue Code; and (ii) for taxable years
16

ending on or after August 13, 1999, Sections
17

171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
18

Internal Revenue Code, plus, for taxable years ending
19

on or after December 31, 2011, Section 45G(e)(3) of
20

the Internal Revenue Code and, for taxable years
21

ending on or after December 31, 2008, any amount
22

included in gross income under Section 87 of the
23

Internal Revenue Code; the provisions of this
24

subparagraph are exempt from the provisions of Section
25

250;
26

(N) An amount equal to all amounts included in

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1

such total which are exempt from taxation by this
2

State either by reason of its statutes or Constitution
3

or by reason of the Constitution, treaties or statutes
4

of the United States; provided that, in the case of any
5

statute of this State that exempts income derived from
6

bonds or other obligations from the tax imposed under
7

this Act, the amount exempted shall be the interest
8

net of bond premium amortization;
9

(O) An amount equal to any contribution made to a
10

job training project established pursuant to the Tax
11

Increment Allocation Redevelopment Act;
12

(P) An amount equal to the amount of the deduction
13

used to compute the federal income tax credit for
14

restoration of substantial amounts held under claim of
15

right for the taxable year pursuant to Section 1341 of
16

the Internal Revenue Code or of any itemized deduction
17

taken from adjusted gross income in the computation of
18

taxable income for restoration of substantial amounts
19

held under claim of right for the taxable year;
20

(Q) An amount equal to any amounts included in
21

such total, received by the taxpayer as an
22

acceleration in the payment of life, endowment or
23

annuity benefits in advance of the time they would
24

otherwise be payable as an indemnity for a terminal
25

illness;
26

(R) An amount equal to the amount of any federal or

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1

State bonus paid to veterans of the Persian Gulf War;
2

(S) An amount, to the extent included in adjusted
3

gross income, equal to the amount of a contribution
4

made in the taxable year on behalf of the taxpayer to a
5

medical care savings account established under the
6

Medical Care Savings Account Act or the Medical Care
7

Savings Account Act of 2000 to the extent the
8

contribution is accepted by the account administrator
9

as provided in that Act;
10

(T) An amount, to the extent included in adjusted
11

gross income, equal to the amount of interest earned
12

in the taxable year on a medical care savings account
13

established under the Medical Care Savings Account Act
14

or the Medical Care Savings Account Act of 2000 on
15

behalf of the taxpayer, other than interest added
16

pursuant to item (D-5) of this paragraph (2);
17

(U) For one taxable year beginning on or after
18

January 1, 1994, an amount equal to the total amount of
19

tax imposed and paid under subsections (a) and (b) of
20

Section 201 of this Act on grant amounts received by
21

the taxpayer under the Nursing Home Grant Assistance
22

Act during the taxpayer's taxable years 1992 and 1993;
23

(V) Beginning with tax years ending on or after
24

December 31, 1995 and ending with tax years ending on
25

or before December 31, 2004, an amount equal to the
26

amount paid by a taxpayer who is a self-employed

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taxpayer, a partner of a partnership, or a shareholder
2

in a Subchapter S corporation for health insurance or
3

long-term care insurance for that taxpayer or that
4

taxpayer's spouse or dependents, to the extent that
5

the amount paid for that health insurance or long-term
6

care insurance may be deducted under Section 213 of
7

the Internal Revenue Code, has not been deducted on
8

the federal income tax return of the taxpayer, and
9

does not exceed the taxable income attributable to
10

that taxpayer's income, self-employment income, or
11

Subchapter S corporation income; except that no
12

deduction shall be allowed under this item (V) if the
13

taxpayer is eligible to participate in any health
14

insurance or long-term care insurance plan of an
15

employer of the taxpayer or the taxpayer's spouse. The
16

amount of the health insurance and long-term care
17

insurance subtracted under this item (V) shall be
18

determined by multiplying total health insurance and
19

long-term care insurance premiums paid by the taxpayer
20

times a number that represents the fractional
21

percentage of eligible medical expenses under Section
22

213 of the Internal Revenue Code of 1986 not actually
23

deducted on the taxpayer's federal income tax return;
24

(W) For taxable years beginning on or after
25

January 1, 1998, all amounts included in the
26

taxpayer's federal gross income in the taxable year

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1

from amounts converted from a regular IRA to a Roth
2

IRA. This paragraph is exempt from the provisions of
3

Section 250;
4

(X) For taxable year 1999 and thereafter, an
5

amount equal to the amount of any (i) distributions,
6

to the extent includible in gross income for federal
7

income tax purposes, made to the taxpayer because of
8

his or her status as a victim of persecution for racial
9

or religious reasons by Nazi Germany or any other Axis
10

regime or as an heir of the victim and (ii) items of
11

income, to the extent includible in gross income for
12

federal income tax purposes, attributable to, derived
13

from or in any way related to assets stolen from,
14

hidden from, or otherwise lost to a victim of
15

persecution for racial or religious reasons by Nazi
16

Germany or any other Axis regime immediately prior to,
17

during, and immediately after World War II, including,
18

but not limited to, interest on the proceeds
19

receivable as insurance under policies issued to a
20

victim of persecution for racial or religious reasons
21

by Nazi Germany or any other Axis regime by European
22

insurance companies immediately prior to and during
23

World War II; provided, however, this subtraction from
24

federal adjusted gross income does not apply to assets
25

acquired with such assets or with the proceeds from
26

the sale of such assets; provided, further, this

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1

paragraph shall only apply to a taxpayer who was the
2

first recipient of such assets after their recovery
3

and who is 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. The amount of and
6

the eligibility for any public assistance, benefit, or
7

similar entitlement is not affected by the inclusion
8

of items (i) and (ii) of this paragraph in gross income
9

for federal income tax purposes. This paragraph is
10

exempt from the provisions of Section 250;
11

(Y) For taxable years beginning on or after
12

January 1, 2002 and ending on or before December 31,
13

2004, moneys contributed in the taxable year to a
14

College Savings Pool account under Section 16.5 of the
15

State Treasurer Act, except that amounts excluded from
16

gross income under Section 529(c)(3)(C)(i) of the
17

Internal Revenue Code shall not be considered moneys
18

contributed under this subparagraph (Y). For taxable
19

years beginning on or after January 1, 2005, a maximum
20

of $10,000 contributed in the taxable year to (i) a
21

College Savings Pool account under Section 16.5 of the
22

State Treasurer Act or (ii) the Illinois Prepaid
23

Tuition Trust Fund, except that amounts excluded from
24

gross income under Section 529(c)(3)(C)(i) of the
25

Internal Revenue Code shall not be considered moneys
26

contributed under this subparagraph (Y). For purposes

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1

of this subparagraph, contributions made by an
2

employer on behalf of an employee, or matching
3

contributions made by an employee, shall be treated as
4

made by the employee. This subparagraph (Y) is exempt
5

from the provisions of Section 250;
6

(Z) For taxable years 2001 and thereafter, for the
7

taxable year in which the bonus depreciation deduction
8

is taken on the taxpayer's federal income tax return
9

under subsection (k) of Section 168 of the Internal
10

Revenue Code and for each applicable taxable year
11

thereafter, an amount equal to "x", where:
12

(1) "y" equals the amount of the depreciation
13

deduction taken for the taxable year on the
14

taxpayer's federal income tax return on property
15

for which the bonus depreciation deduction was
16

taken in any year under subsection (k) of Section
17

168 of the Internal Revenue Code, but not
18

including the bonus depreciation deduction;
19

(2) for taxable years ending on or before
20

December 31, 2005, "x" equals "y" multiplied by 30
21

and then divided by 70 (or "y" multiplied by
22

0.429); and
23

(3) for taxable years ending after December
24

31, 2005:
25

(i) for property on which a bonus
26

depreciation deduction of 30% of the adjusted

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1

basis was taken, "x" equals "y" multiplied by
2

30 and then divided by 70 (or "y" multiplied
3

by 0.429);
4

(ii) for property on which a bonus
5

depreciation deduction of 50% of the adjusted
6

basis was taken, "x" equals "y" multiplied by
7

1.0;
8

(iii) for property on which a bonus
9

depreciation deduction of 100% of the adjusted
10

basis was taken in a taxable year ending on or
11

after December 31, 2021, "x" equals the
12

depreciation deduction that would be allowed
13

on that property if the taxpayer had made the
14

election under Section 168(k)(7) of the
15

Internal Revenue Code to not claim bonus
16

depreciation on that property; and
17

(iv) for property on which a bonus
18

depreciation deduction of a percentage other
19

than 30%, 50% or 100% of the adjusted basis
20

was taken in a taxable year ending on or after
21

December 31, 2021, "x" equals "y" multiplied
22

by 100 times the percentage bonus depreciation
23

on the property (that is, 100(bonus%)) and
24

then divided by 100 times 1 minus the
25

percentage bonus depreciation on the property
26

(that is, 100(1-bonus%)).

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1

The aggregate amount deducted under this
2

subparagraph in all taxable years for any one piece of
3

property may not exceed the amount of the bonus
4

depreciation deduction taken on that property on the
5

taxpayer's federal income tax return under subsection
6

(k) of Section 168 of the Internal Revenue Code. This
7

subparagraph (Z) is exempt from the provisions of
8

Section 250;
9

(AA) 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-15), then
13

an amount equal to that addition modification.
14

If the taxpayer continues to own property through
15

the last day of the last tax year for which a
16

subtraction is allowed with respect to that property
17

under subparagraph (Z) and for which the taxpayer was
18

required in any taxable year to make an addition
19

modification under subparagraph (D-15), then an amount
20

equal to that addition modification.
21

The taxpayer is allowed to take the deduction
22

under this subparagraph only once with respect to any
23

one piece of property.
24

This subparagraph (AA) is exempt from the
25

provisions of Section 250;
26

(BB) Any amount included in adjusted gross income,

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1

other than salary, received by a driver in a
2

ridesharing arrangement using a motor vehicle;
3

(CC) The amount of (i) any interest income (net of
4

the deductions allocable thereto) taken into account
5

for the taxable year with respect to a transaction
6

with a taxpayer that is required to make an addition
7

modification with respect to such transaction under
8

Section 203(a)(2)(D-17), 203(b)(2)(E-12),
9

203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
10

the amount of that addition modification, and (ii) any
11

income from intangible property (net of the deductions
12

allocable thereto) taken into account for the taxable
13

year with respect to a transaction with a taxpayer
14

that is required to make an addition modification with
15

respect to such transaction under Section
16

203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
17

203(d)(2)(D-8), but not to exceed the amount of that
18

addition modification. This subparagraph (CC) is
19

exempt from the provisions of Section 250;
20

(DD) An amount equal to the interest income taken
21

into account for the taxable year (net of the
22

deductions allocable thereto) with respect to
23

transactions with (i) a foreign person who would be a
24

member of the taxpayer's unitary business group but
25

for the fact that the foreign person's business
26

activity outside the United States is 80% or more of

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1

that person's total business activity and (ii) for
2

taxable years ending on or after December 31, 2008, to
3

a person who would be a member of the same unitary
4

business group but for the fact that the person is
5

prohibited under Section 1501(a)(27) from being
6

included in the unitary business group because he or
7

she is ordinarily required to apportion business
8

income under different subsections of Section 304, but
9

not to exceed the addition modification required to be
10

made for the same taxable year under Section
11

203(a)(2)(D-17) for interest paid, accrued, or
12

incurred, directly or indirectly, to the same person.
13

This subparagraph (DD) is exempt from the provisions
14

of Section 250;
15

(EE) An amount equal to the income from intangible
16

property taken into account for the taxable year (net
17

of the deductions allocable thereto) with respect to
18

transactions with (i) a foreign person who would be a
19

member of the taxpayer's unitary business group but
20

for the fact that the foreign person's business
21

activity outside the United States is 80% or more of
22

that person's total business activity and (ii) for
23

taxable years ending on or after December 31, 2008, to
24

a person who would be a member of the same unitary
25

business group but for the fact that the person is
26

prohibited under Section 1501(a)(27) from being

HB3280
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LRB104 11474 HLH 21563 b
1

included in the unitary business group because he or
2

she is ordinarily required to apportion business
3

income under different subsections of Section 304, but
4

not to exceed the addition modification required to be
5

made for the same taxable year under Section
6

203(a)(2)(D-18) for intangible expenses and costs
7

paid, accrued, or incurred, directly or indirectly, to
8

the same foreign person. This subparagraph (EE) is
9

exempt from the provisions of Section 250;
10

(FF) An amount equal to any amount awarded to the
11

taxpayer during the taxable year by the Court of
12

Claims under subsection (c) of Section 8 of the Court
13

of Claims Act for time unjustly served in a State
14

prison. This subparagraph (FF) is exempt from the
15

provisions of Section 250;
16

(GG) For taxable years ending on or after December
17

31, 2011, in the case of a taxpayer who was required to
18

add back any insurance premiums under Section
19

203(a)(2)(D-19), such taxpayer may elect to subtract
20

that part of a reimbursement received from the
21

insurance company equal to the amount of the expense
22

or loss (including expenses incurred by the insurance
23

company) that would have been taken into account as a
24

deduction for federal income tax purposes if the
25

expense or loss had been uninsured. If a taxpayer
26

makes the election provided for by this subparagraph

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1

(GG), the insurer to which the premiums were paid must
2

add back to income the amount subtracted by the
3

taxpayer pursuant to this subparagraph (GG). This
4

subparagraph (GG) is exempt from the provisions of
5

Section 250;
6

(HH) For taxable years beginning on or after
7

January 1, 2018 and prior to January 1, 2028, 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
13

be considered moneys contributed under this
14

subparagraph (HH). For purposes of this subparagraph
15

(HH), contributions made by an employer on behalf of
16

an employee, or matching contributions made by an
17

employee, shall be treated as made by the employee;
18

(II) For taxable years that begin on or after
19

January 1, 2021 and begin before January 1, 2026, the
20

amount that is included in the taxpayer's federal
21

adjusted gross income pursuant to Section 61 of the
22

Internal Revenue Code as discharge of indebtedness
23

attributable to student loan forgiveness and that is
24

not excluded from the taxpayer's federal adjusted
25

gross income pursuant to paragraph (5) of subsection
26

(f) of Section 108 of the Internal Revenue Code;

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LRB104 11474 HLH 21563 b
1

(JJ) For taxable years beginning on or after
2

January 1, 2023, for any cannabis establishment
3

operating in this State and licensed under the
4

Cannabis Regulation and Tax Act or any cannabis
5

cultivation center or medical cannabis dispensing
6

organization operating in this State and licensed
7

under the Compassionate Use of Medical Cannabis
8

Program Act, an amount equal to the deductions that
9

were disallowed under Section 280E of the Internal
10

Revenue Code for the taxable year and that would not be
11

added back under this subsection. The provisions of
12

this subparagraph (JJ) are exempt from the provisions
13

of Section 250;
and

14

(KK) To the extent includible in gross income for
15

federal income tax purposes, any amount awarded or
16

paid to the taxpayer as a result of a judgment or
17

settlement for fertility fraud as provided in Section
18

15 of the Illinois Fertility Fraud Act, donor
19

fertility fraud as provided in Section 20 of the
20

Illinois Fertility Fraud Act, or similar action in
21

another state;
and

22

(LL) For taxable years beginning on or after
23

January 1, 2026, if the taxpayer is a qualified
24

worker, as defined in the Workforce Development
25

through Charitable Loan Repayment Act, an amount equal
26

to the amount included in the taxpayer's federal

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1

adjusted gross income that is attributable to student
2

loan repayment assistance received by the taxpayer
3

during the taxable year from a qualified community
4

foundation under the provisions of the Workforce
5

Development
through

Through
Charitable Loan Repayment
6

Act.
7

This subparagraph (LL) is exempt from the
8

provisions of Section 250
;

.

9

(MM)

(LL)
For taxable years beginning on or after
10

January 1, 2025, if the taxpayer is an eligible
11

resident as defined in the Medical Debt Relief Act, an
12

amount equal to the amount included in the taxpayer's
13

federal adjusted gross income that is attributable to
14

medical debt relief received by the taxpayer during
15

the taxable year from a nonprofit medical debt relief
16

coordinator under the provisions of the Medical Debt
17

Relief Act. This subparagraph
(MM)

(LL)
is exempt from
18

the provisions of Section 250
; and

.

19

(NN) For taxable years beginning on or after
20

January 1, 2026, the full amount of union dues paid by
21

the taxpayer during the taxable year if the taxpayer
22

was not allowed a federal deduction by operation of
23

Section 67 of the Internal Revenue Code; if any amount
24

of union dues representing federal miscellaneous
25

itemized deductions was allowed, then the amount
26

allowed as a deduction under this subparagraph (NN)

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LRB104 11474 HLH 21563 b
1

shall be a percentage of the union dues disallowed by
2

the operation of Section 67 of the Internal Revenue
3

Code computed as follows: by multiplying the total
4

union dues paid by the taxpayer during the taxable
5

year by a percentage determined by subtracting from
6

one a fraction where the numerator is the amount of
7

federal miscellaneous deductions allowed and the
8

denominator is the aggregate federal miscellaneous
9

itemized deductions before application of the 2% floor
10

under Section 67 of the Internal Revenue Code. In no
11

event may a deduction under this subparagraph exceed
12

(i) $60 for any individual taxpayer in any taxable
13

year or (ii) $100 in any taxable year for spouses
14

filing a joint return. For the purposes of this
15

subparagraph (NN), union dues are those amounts that
16

are deductible as union dues and agency shop fees
17

under Section 162 of the Internal Revenue Code. This
18

subparagraph (NN) is exempt from the provisions of
19

Section 250.

20

(b) Corporations.
21

(1) In general. In the case of a corporation, base
22

income means an amount equal to the taxpayer's taxable
23

income for the taxable year as modified by paragraph (2).
24

(2) Modifications. The taxable income referred to in
25

paragraph (1) shall be modified by adding thereto the sum

HB3280
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LRB104 11474 HLH 21563 b
1

of the following amounts:
2

(A) An amount equal to all amounts paid or accrued
3

to the taxpayer as interest and all distributions
4

received from regulated investment companies during
5

the taxable year to the extent excluded from gross
6

income in the computation of taxable income;
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 taxable income for the taxable
10

year;
11

(C) In the case of a regulated investment company,
12

an amount equal to the excess of (i) the net long-term
13

capital gain for the taxable year, over (ii) the
14

amount of the capital gain dividends designated as
15

such in accordance with Section 852(b)(3)(C) of the
16

Internal Revenue Code and any amount designated under
17

Section 852(b)(3)(D) of the Internal Revenue Code,
18

attributable to the taxable year (this amendatory Act
19

of 1995 (Public Act 89-89) is declarative of existing
20

law and is not a new enactment);
21

(D) The amount of any net operating loss deduction
22

taken in arriving at taxable income, other than a net
23

operating loss carried forward from a taxable year
24

ending prior to December 31, 1986;
25

(E) For taxable years in which a net operating
26

loss carryback or carryforward from a taxable year

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LRB104 11474 HLH 21563 b
1

ending prior to December 31, 1986 is an element of
2

taxable income under paragraph (1) of subsection (e)
3

or subparagraph (E) of paragraph (2) of subsection
4

(e), the amount by which addition modifications other
5

than those provided by this subparagraph (E) exceeded
6

subtraction modifications in such earlier taxable
7

year, with the following limitations applied in the
8

order that they are listed:
9

(i) the addition modification relating to the
10

net operating loss carried back or forward to the
11

taxable year from any taxable year ending prior to
12

December 31, 1986 shall be reduced by the amount
13

of addition modification under this subparagraph
14

(E) which related to that net operating loss and
15

which was taken into account in calculating the
16

base income of an earlier taxable year, and
17

(ii) the addition modification relating to the
18

net operating loss carried back or forward to the
19

taxable year from any taxable year ending prior to
20

December 31, 1986 shall not exceed the amount of
21

such carryback or carryforward;
22

For taxable years in which there is a net
23

operating loss carryback or carryforward from more
24

than one other taxable year ending prior to December
25

31, 1986, the addition modification provided in this
26

subparagraph (E) shall be the sum of the amounts

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1

computed independently under the preceding provisions
2

of this subparagraph (E) for each such taxable year;
3

(E-5) For taxable years ending after December 31,
4

1997, an amount equal to any eligible remediation
5

costs that the corporation deducted in computing
6

adjusted gross income and for which the corporation
7

claims a credit under subsection (l) of Section 201;
8

(E-10) For taxable years 2001 and thereafter, an
9

amount equal to the bonus depreciation deduction taken
10

on the taxpayer's federal income tax return for the
11

taxable year under subsection (k) of Section 168 of
12

the Internal Revenue Code;
13

(E-11) If the taxpayer sells, transfers, abandons,
14

or otherwise disposes of property for which the
15

taxpayer was required in any taxable year to make an
16

addition modification under subparagraph (E-10), then
17

an amount equal to the aggregate amount of the
18

deductions taken in all taxable years under
19

subparagraph (T) with respect to that property.
20

If the taxpayer continues to own property through
21

the last day of the last tax year for which a
22

subtraction is allowed with respect to that property
23

under subparagraph (T) and for which the taxpayer was
24

allowed in any taxable year to make a subtraction
25

modification under subparagraph (T), then an amount
26

equal to that subtraction modification.

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1

The taxpayer is required to make the addition
2

modification under this subparagraph only once with
3

respect to any one piece of property;
4

(E-12) An amount equal to the amount otherwise
5

allowed as a deduction in computing base income for
6

interest paid, accrued, or incurred, directly or
7

indirectly, (i) for taxable years ending on or after
8

December 31, 2004, to a foreign person who would be a
9

member of the same unitary business group but for the
10

fact the foreign person's business activity outside
11

the United States is 80% or more of the foreign
12

person's total business activity and (ii) for taxable
13

years ending on or after December 31, 2008, to a person
14

who would be a member of the same unitary business
15

group but for the fact that the person is prohibited
16

under Section 1501(a)(27) from being included in the
17

unitary business group because he or she is ordinarily
18

required to apportion business income under different
19

subsections of Section 304. The addition modification
20

required by this subparagraph shall be reduced to the
21

extent that dividends were included in base income of
22

the unitary group for the same taxable year and
23

received by the taxpayer or by a member of the
24

taxpayer's unitary business group (including amounts
25

included in gross income pursuant to Sections 951
26

through 964 of the Internal Revenue Code and amounts

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included in gross income under Section 78 of the
2

Internal Revenue Code) with respect to the stock of
3

the same person to whom the interest was paid,
4

accrued, or incurred.
5

This paragraph shall not apply to the following:
6

(i) an item of interest paid, accrued, or
7

incurred, directly or indirectly, to a person who
8

is subject in a foreign country or state, other
9

than a state which requires mandatory unitary
10

reporting, to a tax on or measured by net income
11

with respect to such interest; or
12

(ii) an item of interest paid, accrued, or
13

incurred, directly or indirectly, to a person if
14

the taxpayer can establish, based on a
15

preponderance of the evidence, both of the
16

following:
17

(a) the person, during the same taxable
18

year, paid, accrued, or incurred, the interest
19

to a person that is not a related member, and
20

(b) the transaction giving rise to the
21

interest expense between the taxpayer and the
22

person did not have as a principal purpose the
23

avoidance of Illinois income tax, and is paid
24

pursuant to a contract or agreement that
25

reflects an arm's-length interest rate and
26

terms; or

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(iii) the taxpayer can establish, based on
2

clear and convincing evidence, that the interest
3

paid, accrued, or incurred relates to a contract
4

or agreement entered into at arm's-length rates
5

and terms and the principal purpose for the
6

payment is not federal or Illinois tax avoidance;
7

or
8

(iv) an item of interest paid, accrued, or
9

incurred, directly or indirectly, to a person if
10

the taxpayer establishes by clear and convincing
11

evidence that the adjustments are unreasonable; or
12

if the taxpayer and the Director agree in writing
13

to the application or use of an alternative method
14

of apportionment under Section 304(f).
15

Nothing in this subsection shall preclude the
16

Director from making any other adjustment
17

otherwise allowed under Section 404 of this Act
18

for any tax year beginning after the effective
19

date of this amendment provided such adjustment is
20

made pursuant to regulation adopted by the
21

Department and such regulations provide methods
22

and standards by which the Department will utilize
23

its authority under Section 404 of this Act;
24

(E-13) An amount equal to the amount of intangible
25

expenses and costs otherwise allowed as a deduction in
26

computing base income, and that were paid, accrued, or

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incurred, directly or indirectly, (i) for taxable
2

years ending on or after December 31, 2004, to a
3

foreign person who would be a member of the same
4

unitary business group but for the fact that the
5

foreign person's business activity outside the United
6

States is 80% or more of that person's total business
7

activity and (ii) for taxable years ending on or after
8

December 31, 2008, to a person who would be a member of
9

the same unitary business group but for the fact that
10

the person is prohibited under Section 1501(a)(27)
11

from being included in the unitary business group
12

because he or she is ordinarily required to apportion
13

business income under different subsections of Section
14

304. The addition modification required by this
15

subparagraph shall be reduced to the extent that
16

dividends were included in base income of the unitary
17

group for the same taxable year and received by the
18

taxpayer or by a member of the taxpayer's unitary
19

business group (including amounts included in gross
20

income pursuant to Sections 951 through 964 of the
21

Internal Revenue Code and amounts included in gross
22

income under Section 78 of the Internal Revenue Code)
23

with respect to the stock of the same person to whom
24

the intangible expenses and costs were directly or
25

indirectly paid, incurred, or accrued. The preceding
26

sentence shall not apply to the extent that the same

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dividends caused a reduction to the addition
2

modification required under Section 203(b)(2)(E-12) of
3

this Act. As used in this subparagraph, the term
4

"intangible expenses and costs" includes (1) expenses,
5

losses, and costs for, or related to, the direct or
6

indirect acquisition, use, maintenance or management,
7

ownership, sale, exchange, or any other disposition of
8

intangible property; (2) losses incurred, directly or
9

indirectly, from factoring transactions or discounting
10

transactions; (3) royalty, patent, technical, and
11

copyright fees; (4) licensing fees; and (5) other
12

similar expenses and costs. For purposes of this
13

subparagraph, "intangible property" includes patents,
14

patent applications, trade names, trademarks, service
15

marks, copyrights, mask works, trade secrets, and
16

similar types of intangible assets.
17

This paragraph shall not apply to the following:
18

(i) any item of intangible expenses or costs
19

paid, accrued, or incurred, directly or
20

indirectly, from a transaction with a person who
21

is subject in a foreign country or state, other
22

than a state which requires mandatory unitary
23

reporting, to a tax on or measured by net income
24

with respect to such item; or
25

(ii) any item of intangible expense or cost
26

paid, accrued, or incurred, directly or

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indirectly, if the taxpayer can establish, based
2

on a preponderance of the evidence, both of the
3

following:
4

(a) the person during the same taxable
5

year paid, accrued, or incurred, the
6

intangible expense or cost to a person that is
7

not a related member, and
8

(b) the transaction giving rise to the
9

intangible expense or cost between the
10

taxpayer and the person did not have as a
11

principal purpose the avoidance of Illinois
12

income tax, and is paid pursuant to a contract
13

or agreement that reflects arm's-length terms;
14

or
15

(iii) any item of intangible expense or cost
16

paid, accrued, or incurred, directly or
17

indirectly, from a transaction with a person if
18

the taxpayer establishes by clear and convincing
19

evidence, that the adjustments are unreasonable;
20

or if the taxpayer and the Director agree in
21

writing to the application or use of an
22

alternative method of apportionment under Section
23

304(f);
24

Nothing in this subsection shall preclude the
25

Director from making any other adjustment
26

otherwise allowed under Section 404 of this Act

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for any tax year beginning after the effective
2

date of this amendment provided such adjustment is
3

made pursuant to regulation adopted by the
4

Department and such regulations provide methods
5

and standards by which the Department will utilize
6

its authority under Section 404 of this Act;
7

(E-14) For taxable years ending on or after
8

December 31, 2008, an amount equal to the amount of
9

insurance premium expenses and costs otherwise allowed
10

as a deduction in computing base income, and that were
11

paid, accrued, or incurred, directly or indirectly, to
12

a person who would be a member of the same unitary
13

business group but for the fact that the person is
14

prohibited under Section 1501(a)(27) from being
15

included in the unitary business group because he or
16

she is ordinarily required to apportion business
17

income under different subsections of Section 304. The
18

addition modification required by this subparagraph
19

shall be reduced to the extent that dividends were
20

included in base income of the unitary group for the
21

same taxable year and received by the taxpayer or by a
22

member of the taxpayer's unitary business group
23

(including amounts included in gross income under
24

Sections 951 through 964 of the Internal Revenue Code
25

and amounts included in gross income under Section 78
26

of the Internal Revenue Code) with respect to the

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stock of the same person to whom the premiums and costs
2

were directly or indirectly paid, incurred, or
3

accrued. The preceding sentence does not apply to the
4

extent that the same dividends caused a reduction to
5

the addition modification required under Section
6

203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
7

Act;
8

(E-15) For taxable years beginning after December
9

31, 2008, any deduction for dividends paid by a
10

captive real estate investment trust that is allowed
11

to a real estate investment trust under Section
12

857(b)(2)(B) of the Internal Revenue Code for
13

dividends paid;
14

(E-16) An amount equal to the credit allowable to
15

the taxpayer under Section 218(a) of this Act,
16

determined without regard to Section 218(c) of this
17

Act;
18

(E-17) For taxable years ending on or after
19

December 31, 2017, an amount equal to the deduction
20

allowed under Section 199 of the Internal Revenue Code
21

for the taxable year;
22

(E-18) for taxable years beginning after December
23

31, 2018, an amount equal to the deduction allowed
24

under Section 250(a)(1)(A) of the Internal Revenue
25

Code for the taxable year;
26

(E-19) for taxable years ending on or after June

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30, 2021, an amount equal to the deduction allowed
2

under Section 250(a)(1)(B)(i) of the Internal Revenue
3

Code for the taxable year;
4

(E-20) for taxable years ending on or after June
5

30, 2021, an amount equal to the deduction allowed
6

under Sections 243(e) and 245A(a) of the Internal
7

Revenue Code for the taxable year;
8

(E-21) the amount that is claimed as a federal
9

deduction when computing the taxpayer's federal
10

taxable income for the taxable year and that is
11

attributable to an endowment gift for which the
12

taxpayer receives a credit under the Illinois Gives
13

Tax Credit Act;
14

and by deducting from the total so obtained the sum of the
15

following amounts:
16

(F) An amount equal to the amount of any tax
17

imposed by this Act which was refunded to the taxpayer
18

and included in such total for the taxable year;
19

(G) An amount equal to any amount included in such
20

total under Section 78 of the Internal Revenue Code;
21

(H) In the case of a regulated investment company,
22

an amount equal to the amount of exempt interest
23

dividends as defined in subsection (b)(5) of Section
24

852 of the Internal Revenue Code, paid to shareholders
25

for the taxable year;
26

(I) With the exception of any amounts subtracted

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under subparagraph (J), an amount equal to the sum of
2

all amounts disallowed as deductions by (i) Sections
3

171(a)(2) and 265(a)(2) and amounts disallowed as
4

interest expense by Section 291(a)(3) of the Internal
5

Revenue Code, and all amounts of expenses allocable to
6

interest and disallowed as deductions by Section
7

265(a)(1) of the Internal Revenue Code; and (ii) for
8

taxable years ending on or after August 13, 1999,
9

Sections 171(a)(2), 265, 280C, 291(a)(3), and
10

832(b)(5)(B)(i) of the Internal Revenue Code, plus,
11

for tax years ending on or after December 31, 2011,
12

amounts disallowed as deductions by Section 45G(e)(3)
13

of the Internal Revenue Code and, for taxable years
14

ending on or after December 31, 2008, any amount
15

included in gross income under Section 87 of the
16

Internal Revenue Code and the policyholders' share of
17

tax-exempt interest of a life insurance company under
18

Section 807(a)(2)(B) of the Internal Revenue Code (in
19

the case of a life insurance company with gross income
20

from a decrease in reserves for the tax year) or
21

Section 807(b)(1)(B) of the Internal Revenue Code (in
22

the case of a life insurance company allowed a
23

deduction for an increase in reserves for the tax
24

year); the provisions of this subparagraph are exempt
25

from the provisions of Section 250;
26

(J) An amount equal to all amounts included in

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such total which are exempt from taxation by this
2

State either by reason of its statutes or Constitution
3

or by reason of the Constitution, treaties or statutes
4

of the United States; provided that, in the case of any
5

statute of this State that exempts income derived from
6

bonds or other obligations from the tax imposed under
7

this Act, the amount exempted shall be the interest
8

net of bond premium amortization;
9

(K) An amount equal to those dividends included in
10

such total which were paid by a corporation which
11

conducts business operations in a River Edge
12

Redevelopment Zone or zones created under the River
13

Edge Redevelopment Zone Act and conducts substantially
14

all of its operations in a River Edge Redevelopment
15

Zone or zones. This subparagraph (K) is exempt from
16

the provisions of Section 250;
17

(L) An amount equal to those dividends included in
18

such total that were paid by a corporation that
19

conducts business operations in a federally designated
20

Foreign Trade Zone or Sub-Zone and that is designated
21

a High Impact Business located in Illinois; provided
22

that dividends eligible for the deduction provided in
23

subparagraph (K) of paragraph 2 of this subsection
24

shall not be eligible for the deduction provided under
25

this subparagraph (L);
26

(M) For any taxpayer that is a financial

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organization within the meaning of Section 304(c) of
2

this Act, an amount included in such total as interest
3

income from a loan or loans made by such taxpayer to a
4

borrower, to the extent that such a loan is secured by
5

property which is eligible for the River Edge
6

Redevelopment Zone Investment Credit. To determine the
7

portion of a loan or loans that is secured by property
8

eligible for a Section 201(f) investment credit to the
9

borrower, the entire principal amount of the loan or
10

loans between the taxpayer and the borrower should be
11

divided into the basis of the Section 201(f)
12

investment credit property which secures the loan or
13

loans, using for this purpose the original basis of
14

such property on the date that it was placed in service
15

in the River Edge Redevelopment Zone. The subtraction
16

modification available to the taxpayer in any year
17

under this subsection shall be that portion of the
18

total interest paid by the borrower with respect to
19

such loan attributable to the eligible property as
20

calculated under the previous sentence. This
21

subparagraph (M) is exempt from the provisions of
22

Section 250;
23

(M-1) For any taxpayer that is a financial
24

organization within the meaning of Section 304(c) of
25

this Act, an amount included in such total as interest
26

income from a loan or loans made by such taxpayer to a

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1

borrower, to the extent that such a loan is secured by
2

property which is eligible for the High Impact
3

Business Investment Credit. To determine the portion
4

of a loan or loans that is secured by property eligible
5

for a Section 201(h) investment credit to the
6

borrower, the entire principal amount of the loan or
7

loans between the taxpayer and the borrower should be
8

divided into the basis of the Section 201(h)
9

investment credit property which secures the loan or
10

loans, using for this purpose the original basis of
11

such property on the date that it was placed in service
12

in a federally designated Foreign Trade Zone or
13

Sub-Zone located in Illinois. No taxpayer that is
14

eligible for the deduction provided in subparagraph
15

(M) of paragraph (2) of this subsection shall be
16

eligible for the deduction provided under this
17

subparagraph (M-1). The subtraction modification
18

available to taxpayers in any year under this
19

subsection shall be that portion of the total interest
20

paid by the borrower with respect to such loan
21

attributable to the eligible property as calculated
22

under the previous sentence;
23

(N) Two times any contribution made during the
24

taxable year to a designated zone organization to the
25

extent that the contribution (i) qualifies as a
26

charitable contribution under subsection (c) of

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1

Section 170 of the Internal Revenue Code and (ii)
2

must, by its terms, be used for a project approved by
3

the Department of Commerce and Economic Opportunity
4

under Section 11 of the Illinois Enterprise Zone Act
5

or under Section 10-10 of the River Edge Redevelopment
6

Zone Act. This subparagraph (N) is exempt from the
7

provisions of Section 250;
8

(O) An amount equal to: (i) 85% for taxable years
9

ending on or before December 31, 1992, or, a
10

percentage equal to the percentage allowable under
11

Section 243(a)(1) of the Internal Revenue Code of 1986
12

for taxable years ending after December 31, 1992, of
13

the amount by which dividends included in taxable
14

income and received from a corporation that is not
15

created or organized under the laws of the United
16

States or any state or political subdivision thereof,
17

including, for taxable years ending on or after
18

December 31, 1988, dividends received or deemed
19

received or paid or deemed paid under Sections 951
20

through 965 of the Internal Revenue Code, exceed the
21

amount of the modification provided under subparagraph
22

(G) of paragraph (2) of this subsection (b) which is
23

related to such dividends, and including, for taxable
24

years ending on or after December 31, 2008, dividends
25

received from a captive real estate investment trust;
26

plus (ii) 100% of the amount by which dividends,

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1

included in taxable income and received, including,
2

for taxable years ending on or after December 31,
3

1988, dividends received or deemed received or paid or
4

deemed paid under Sections 951 through 964 of the
5

Internal Revenue Code and including, for taxable years
6

ending on or after December 31, 2008, dividends
7

received from a captive real estate investment trust,
8

from any such corporation specified in clause (i) that
9

would but for the provisions of Section 1504(b)(3) of
10

the Internal Revenue Code be treated as a member of the
11

affiliated group which includes the dividend
12

recipient, exceed the amount of the modification
13

provided under subparagraph (G) of paragraph (2) of
14

this subsection (b) which is related to such
15

dividends. For taxable years ending on or after June
16

30, 2021, (i) for purposes of this subparagraph, the
17

term "dividend" does not include any amount treated as
18

a dividend under Section 1248 of the Internal Revenue
19

Code, and (ii) this subparagraph shall not apply to
20

dividends for which a deduction is allowed under
21

Section 245(a) of the Internal Revenue Code. This
22

subparagraph (O) is exempt from the provisions of
23

Section 250 of this Act;
24

(P) An amount equal to any contribution made to a
25

job training project established pursuant to the Tax
26

Increment Allocation Redevelopment Act;

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(Q) An amount equal to the amount of the deduction
2

used to compute the federal income tax credit for
3

restoration of substantial amounts held under claim of
4

right for the taxable year pursuant to Section 1341 of
5

the Internal Revenue Code;
6

(R) On and after July 20, 1999, in the case of an
7

attorney-in-fact with respect to whom an interinsurer
8

or a reciprocal insurer has made the election under
9

Section 835 of the Internal Revenue Code, 26 U.S.C.
10

835, an amount equal to the excess, if any, of the
11

amounts paid or incurred by that interinsurer or
12

reciprocal insurer in the taxable year to the
13

attorney-in-fact over the deduction allowed to that
14

interinsurer or reciprocal insurer with respect to the
15

attorney-in-fact under Section 835(b) of the Internal
16

Revenue Code for the taxable year; the provisions of
17

this subparagraph are exempt from the provisions of
18

Section 250;
19

(S) For taxable years ending on or after December
20

31, 1997, in the case of a Subchapter S corporation, an
21

amount equal to all amounts of income allocable to a
22

shareholder subject to the Personal Property Tax
23

Replacement Income Tax imposed by subsections (c) and
24

(d) of Section 201 of this Act, including amounts
25

allocable to organizations exempt from federal income
26

tax by reason of Section 501(a) of the Internal

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1

Revenue Code. This subparagraph (S) is exempt from the
2

provisions of Section 250;
3

(T) For taxable years 2001 and thereafter, for the
4

taxable year in which the bonus depreciation deduction
5

is taken on the taxpayer's federal income tax return
6

under subsection (k) of Section 168 of the Internal
7

Revenue Code and for each applicable taxable year
8

thereafter, an amount equal to "x", where:
9

(1) "y" equals the amount of the depreciation
10

deduction taken for the taxable year on the
11

taxpayer's federal income tax return on property
12

for which the bonus depreciation deduction was
13

taken in any year under subsection (k) of Section
14

168 of the Internal Revenue Code, but not
15

including the bonus depreciation deduction;
16

(2) for taxable years ending on or before
17

December 31, 2005, "x" equals "y" multiplied by 30
18

and then divided by 70 (or "y" multiplied by
19

0.429); and
20

(3) for taxable years ending after December
21

31, 2005:
22

(i) for property on which a bonus
23

depreciation deduction of 30% of the adjusted
24

basis was taken, "x" equals "y" multiplied by
25

30 and then divided by 70 (or "y" multiplied
26

by 0.429);

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(ii) for property on which a bonus
2

depreciation deduction of 50% of the adjusted
3

basis was taken, "x" equals "y" multiplied by
4

1.0;
5

(iii) for property on which a bonus
6

depreciation deduction of 100% of the adjusted
7

basis was taken in a taxable year ending on or
8

after December 31, 2021, "x" equals the
9

depreciation deduction that would be allowed
10

on that property if the taxpayer had made the
11

election under Section 168(k)(7) of the
12

Internal Revenue Code to not claim bonus
13

depreciation on that property; and
14

(iv) for property on which a bonus
15

depreciation deduction of a percentage other
16

than 30%, 50% or 100% of the adjusted basis
17

was taken in a taxable year ending on or after
18

December 31, 2021, "x" equals "y" multiplied
19

by 100 times the percentage bonus depreciation
20

on the property (that is, 100(bonus%)) and
21

then divided by 100 times 1 minus the
22

percentage bonus depreciation on the property
23

(that is, 100(1-bonus%)).
24

The aggregate amount deducted under this
25

subparagraph in all taxable years for any one piece of
26

property may not exceed the amount of the bonus

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1

depreciation deduction taken on that property on the
2

taxpayer's federal income tax return under subsection
3

(k) of Section 168 of the Internal Revenue Code. This
4

subparagraph (T) is exempt from the provisions of
5

Section 250;
6

(U) If the taxpayer sells, transfers, abandons, or
7

otherwise disposes of property for which the taxpayer
8

was required in any taxable year to make an addition
9

modification under subparagraph (E-10), then an amount
10

equal to that addition modification.
11

If the taxpayer continues to own property through
12

the last day of the last tax year for which a
13

subtraction is allowed with respect to that property
14

under subparagraph (T) and for which the taxpayer was
15

required in any taxable year to make an addition
16

modification under subparagraph (E-10), then an amount
17

equal to that addition modification.
18

The taxpayer is allowed to take the deduction
19

under this subparagraph only once with respect to any
20

one piece of property.
21

This subparagraph (U) is exempt from the
22

provisions of Section 250;
23

(V) The amount of: (i) any interest income (net of
24

the deductions allocable thereto) taken into account
25

for the taxable year with respect to a transaction
26

with a taxpayer that is required to make an addition

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modification with respect to such transaction under
2

Section 203(a)(2)(D-17), 203(b)(2)(E-12),
3

203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
4

the amount of such addition modification, (ii) any
5

income from intangible property (net of the deductions
6

allocable thereto) taken into account for the taxable
7

year with respect to a transaction with a taxpayer
8

that is required to make an addition modification with
9

respect to such transaction under Section
10

203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
11

203(d)(2)(D-8), but not to exceed the amount of such
12

addition modification, and (iii) any insurance premium
13

income (net of deductions allocable thereto) taken
14

into account for the taxable year with respect to a
15

transaction with a taxpayer that is required to make
16

an addition modification with respect to such
17

transaction under Section 203(a)(2)(D-19), Section
18

203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
19

203(d)(2)(D-9), but not to exceed the amount of that
20

addition modification. This subparagraph (V) is exempt
21

from the provisions of Section 250;
22

(W) 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

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for the fact that the foreign person's business
2

activity outside the United States is 80% or more of
3

that person's total business activity and (ii) for
4

taxable years ending on or after December 31, 2008, to
5

a person who would be a member of the same unitary
6

business group but for the fact that the person is
7

prohibited under Section 1501(a)(27) from being
8

included in the unitary business group because he or
9

she is ordinarily required to apportion business
10

income under different subsections of Section 304, but
11

not to exceed the addition modification required to be
12

made for the same taxable year under Section
13

203(b)(2)(E-12) for interest paid, accrued, or
14

incurred, directly or indirectly, to the same person.
15

This subparagraph (W) is exempt from the provisions of
16

Section 250;
17

(X) 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
22

for the fact that the foreign person's business
23

activity outside the United States is 80% or more of
24

that person's total business activity and (ii) for
25

taxable years ending on or after December 31, 2008, to
26

a person who would be a member of the same unitary

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business group but for the fact that the person is
2

prohibited under Section 1501(a)(27) from being
3

included in the unitary business group because he or
4

she is ordinarily required to apportion business
5

income under different subsections of Section 304, but
6

not to exceed the addition modification required to be
7

made for the same taxable year under Section
8

203(b)(2)(E-13) for intangible expenses and costs
9

paid, accrued, or incurred, directly or indirectly, to
10

the same foreign person. This subparagraph (X) is
11

exempt from the provisions of Section 250;
12

(Y) For taxable years ending on or after December
13

31, 2011, in the case of a taxpayer who was required to
14

add back any insurance premiums under Section
15

203(b)(2)(E-14), such taxpayer may elect to subtract
16

that part of a reimbursement received from the
17

insurance company equal to the amount of the expense
18

or loss (including expenses incurred by the insurance
19

company) that would have been taken into account as a
20

deduction for federal income tax purposes if the
21

expense or loss had been uninsured. If a taxpayer
22

makes the election provided for by this subparagraph
23

(Y), the insurer to which the premiums were paid must
24

add back to income the amount subtracted by the
25

taxpayer pursuant to this subparagraph (Y). This
26

subparagraph (Y) is exempt from the provisions of

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Section 250;
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
5

taxable income of the taxpayer, computed without
6

regard to Section 965(e)(2)(A) of the Internal Revenue
7

Code, and without regard to any net operating loss
8

deduction. This subparagraph (Z) is exempt from the
9

provisions of Section 250; and
10

(AA) For taxable years beginning on or after
11

January 1, 2023, for any cannabis establishment
12

operating in this State and licensed under the
13

Cannabis Regulation and Tax Act or any cannabis
14

cultivation center or medical cannabis dispensing
15

organization operating in this State and licensed
16

under the Compassionate Use of Medical Cannabis
17

Program Act, an amount equal to the deductions that
18

were disallowed under Section 280E of the Internal
19

Revenue Code for the taxable year and that would not be
20

added back under this subsection. The provisions of
21

this subparagraph (AA) are exempt from the provisions
22

of Section 250.
23

(3) Special rule. For purposes of paragraph (2)(A),
24

"gross income" in the case of a life insurance company,
25

for tax years ending on and after December 31, 1994, and
26

prior to December 31, 2011, shall mean the gross

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investment income for the taxable year and, for tax years
2

ending on or after December 31, 2011, shall mean all
3

amounts included in life insurance gross income under
4

Section 803(a)(3) of the Internal Revenue Code.

5

(c) Trusts and estates.
6

(1) In general. In the case of a trust or estate, base
7

income means an amount equal to the taxpayer's taxable
8

income for the taxable year as modified by paragraph (2).
9

(2) Modifications. Subject to the provisions of
10

paragraph (3), the taxable income referred to in paragraph
11

(1) shall be modified by adding thereto the sum of the
12

following amounts:
13

(A) An amount equal to all amounts paid or accrued
14

to the taxpayer as interest or dividends during the
15

taxable year to the extent excluded from gross income
16

in the computation of taxable income;
17

(B) In the case of (i) an estate, $600; (ii) a
18

trust which, under its governing instrument, is
19

required to distribute all of its income currently,
20

$300; and (iii) any other trust, $100, but in each such
21

case, only to the extent such amount was deducted in
22

the computation of taxable income;
23

(C) An amount equal to the amount of tax imposed by
24

this Act to the extent deducted from gross income in
25

the computation of taxable income for the taxable

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year;
2

(D) The amount of any net operating loss deduction
3

taken in arriving at taxable income, other than a net
4

operating loss carried forward from a taxable year
5

ending prior to December 31, 1986;
6

(E) For taxable years in which a net operating
7

loss carryback or carryforward from a taxable year
8

ending prior to December 31, 1986 is an element of
9

taxable income under paragraph (1) of subsection (e)
10

or subparagraph (E) of paragraph (2) of subsection
11

(e), the amount by which addition modifications other
12

than those provided by this subparagraph (E) exceeded
13

subtraction modifications in such taxable year, with
14

the following limitations applied in the order that
15

they are listed:
16

(i) the addition modification relating to the
17

net operating loss carried back or forward to the
18

taxable year from any taxable year ending prior to
19

December 31, 1986 shall be reduced by the amount
20

of addition modification under this subparagraph
21

(E) which related to that net operating loss and
22

which was taken into account in calculating the
23

base income of an earlier taxable year, and
24

(ii) the addition modification relating to the
25

net operating loss carried back or forward to the
26

taxable year from any taxable year ending prior to

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December 31, 1986 shall not exceed the amount of
2

such carryback or carryforward;
3

For taxable years in which there is a net
4

operating loss carryback or carryforward from more
5

than one other taxable year ending prior to December
6

31, 1986, the addition modification provided in this
7

subparagraph (E) shall be the sum of the amounts
8

computed independently under the preceding provisions
9

of this subparagraph (E) for each such taxable year;
10

(F) For taxable years ending on or after January
11

1, 1989, an amount equal to the tax deducted pursuant
12

to Section 164 of the Internal Revenue Code if the
13

trust or estate is claiming the same tax for purposes
14

of the Illinois foreign tax credit under Section 601
15

of this Act;
16

(G) An amount equal to the amount of the capital
17

gain deduction allowable under the Internal Revenue
18

Code, to the extent deducted from gross income in the
19

computation of taxable income;
20

(G-5) For taxable years ending after December 31,
21

1997, an amount equal to any eligible remediation
22

costs that the trust or estate deducted in computing
23

adjusted gross income and for which the trust or
24

estate claims a credit under subsection (l) of Section
25

201;
26

(G-10) For taxable years 2001 and thereafter, an

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amount equal to the bonus depreciation deduction taken
2

on the taxpayer's federal income tax return for the
3

taxable year under subsection (k) of Section 168 of
4

the Internal Revenue Code; and
5

(G-11) If the taxpayer sells, transfers, abandons,
6

or otherwise disposes of property for which the
7

taxpayer was required in any taxable year to make an
8

addition modification under subparagraph (G-10), then
9

an amount equal to the aggregate amount of the
10

deductions taken in all taxable years under
11

subparagraph (R) with respect to that property.
12

If the taxpayer continues to own property through
13

the last day of the last tax year for which a
14

subtraction is allowed with respect to that property
15

under subparagraph (R) and for which the taxpayer was
16

allowed in any taxable year to make a subtraction
17

modification under subparagraph (R), then an amount
18

equal to that subtraction modification.
19

The taxpayer is required to make the addition
20

modification under this subparagraph only once with
21

respect to any one piece of property;
22

(G-12) An amount equal to the amount otherwise
23

allowed as a deduction in computing base income for
24

interest paid, accrued, or incurred, directly or
25

indirectly, (i) for taxable years ending on or after
26

December 31, 2004, to a foreign person who would be a

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member of the same unitary business group but for the
2

fact that the foreign person's business activity
3

outside the United States is 80% or more of the foreign
4

person's total business activity and (ii) for taxable
5

years ending on or after December 31, 2008, to a person
6

who would be a member of the same unitary business
7

group but for the fact that the person is prohibited
8

under Section 1501(a)(27) from being included in the
9

unitary business group because he or she is ordinarily
10

required to apportion business income under different
11

subsections of Section 304. The addition modification
12

required by this subparagraph shall be reduced to the
13

extent that dividends were included in base income of
14

the unitary group for the same taxable year and
15

received by the taxpayer or by a member of the
16

taxpayer's unitary business group (including amounts
17

included in gross income pursuant to Sections 951
18

through 964 of the Internal Revenue Code and amounts
19

included in gross income under Section 78 of the
20

Internal Revenue Code) with respect to the stock of
21

the same person to whom the interest was paid,
22

accrued, or incurred.
23

This paragraph shall not apply to the following:
24

(i) an item of interest paid, accrued, or
25

incurred, directly or indirectly, to a person who
26

is subject in a foreign country or state, other

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than a state which requires mandatory unitary
2

reporting, to a tax on or measured by net income
3

with respect to such interest; or
4

(ii) an item of interest paid, accrued, or
5

incurred, directly or indirectly, to a person if
6

the taxpayer can establish, based on a
7

preponderance of the evidence, both of the
8

following:
9

(a) the person, during the same taxable
10

year, paid, accrued, or incurred, the interest
11

to a person that is not a related member, and
12

(b) the transaction giving rise to the
13

interest expense between the taxpayer and the
14

person did not have as a principal purpose the
15

avoidance of Illinois income tax, and is paid
16

pursuant to a contract or agreement that
17

reflects an arm's-length interest rate and
18

terms; or
19

(iii) the taxpayer can establish, based on
20

clear and convincing evidence, that the interest
21

paid, accrued, or incurred relates to a contract
22

or agreement entered into at arm's-length rates
23

and terms and the principal purpose for the
24

payment is not federal or Illinois tax avoidance;
25

or
26

(iv) an item of interest paid, accrued, or

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1

incurred, directly or indirectly, to a person if
2

the taxpayer establishes by clear and convincing
3

evidence that the adjustments are unreasonable; or
4

if the taxpayer and the Director agree in writing
5

to the application or use of an alternative method
6

of apportionment under Section 304(f).
7

Nothing in this subsection shall preclude the
8

Director from making any other adjustment
9

otherwise allowed under Section 404 of this Act
10

for any tax year beginning after the effective
11

date of this amendment provided such adjustment is
12

made pursuant to regulation adopted by the
13

Department and such regulations provide methods
14

and standards by which the Department will utilize
15

its authority under Section 404 of this Act;
16

(G-13) An amount equal to the amount of intangible
17

expenses and costs otherwise allowed as a deduction in
18

computing base income, and that were paid, accrued, or
19

incurred, directly or indirectly, (i) for taxable
20

years ending on or after December 31, 2004, to a
21

foreign person who would be a member of the same
22

unitary business group but for the fact that the
23

foreign person's business activity outside the United
24

States is 80% or more of that person's total business
25

activity and (ii) for taxable years ending on or after
26

December 31, 2008, to a person who would be a member of

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the same unitary business group but for the fact that
2

the person is prohibited under Section 1501(a)(27)
3

from being included in the unitary business group
4

because he or she is ordinarily required to apportion
5

business income under different subsections of Section
6

304. The addition modification required by this
7

subparagraph shall be reduced to the extent that
8

dividends were included in base income of the unitary
9

group for the same taxable year and received by the
10

taxpayer or by a member of the taxpayer's unitary
11

business group (including amounts included in gross
12

income pursuant to Sections 951 through 964 of the
13

Internal Revenue Code and amounts included in gross
14

income under Section 78 of the Internal Revenue Code)
15

with respect to the stock of the same person to whom
16

the intangible expenses and costs were directly or
17

indirectly paid, incurred, or accrued. The preceding
18

sentence shall not apply to the extent that the same
19

dividends caused a reduction to the addition
20

modification required under Section 203(c)(2)(G-12) of
21

this Act. As used in this subparagraph, the term
22

"intangible expenses and costs" includes: (1)
23

expenses, losses, and costs for or related to the
24

direct or indirect acquisition, use, maintenance or
25

management, ownership, sale, exchange, or any other
26

disposition of intangible property; (2) losses

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incurred, directly or indirectly, from factoring
2

transactions or discounting transactions; (3) royalty,
3

patent, technical, and copyright fees; (4) licensing
4

fees; and (5) other similar expenses and costs. For
5

purposes of this subparagraph, "intangible property"
6

includes patents, patent applications, trade names,
7

trademarks, service marks, copyrights, mask works,
8

trade secrets, and similar types of intangible assets.
9

This paragraph shall not apply to the following:
10

(i) any item of intangible expenses or costs
11

paid, accrued, or incurred, directly or
12

indirectly, from a transaction with 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 item; or
17

(ii) any item of intangible expense or cost
18

paid, accrued, or incurred, directly or
19

indirectly, if the taxpayer can establish, based
20

on a preponderance of the evidence, both of the
21

following:
22

(a) the person during the same taxable
23

year paid, accrued, or incurred, the
24

intangible expense or cost to a person that is
25

not a related member, and
26

(b) the transaction giving rise to the

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intangible expense or cost between the
2

taxpayer and the person did not have as a
3

principal purpose the avoidance of Illinois
4

income tax, and is paid pursuant to a contract
5

or agreement that reflects arm's-length terms;
6

or
7

(iii) any item of intangible expense or cost
8

paid, accrued, or incurred, directly or
9

indirectly, from a transaction with a person if
10

the taxpayer establishes by clear and convincing
11

evidence, that the adjustments are unreasonable;
12

or if the taxpayer and the Director agree in
13

writing to the application or use of an
14

alternative method of apportionment under Section
15

304(f);
16

Nothing in this subsection shall preclude the
17

Director from making any other adjustment
18

otherwise allowed under Section 404 of this Act
19

for any tax year beginning after the effective
20

date of this amendment provided such adjustment is
21

made pursuant to regulation adopted by the
22

Department and such regulations provide methods
23

and standards by which the Department will utilize
24

its authority under Section 404 of this Act;
25

(G-14) For taxable years ending on or after
26

December 31, 2008, an amount equal to the amount of

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1

insurance premium expenses and costs otherwise allowed
2

as a deduction in computing base income, and that were
3

paid, accrued, or incurred, directly or indirectly, to
4

a person who would be a member of the same unitary
5

business group but for the fact that the person is
6

prohibited under Section 1501(a)(27) from being
7

included in the unitary business group because he or
8

she is ordinarily required to apportion business
9

income under different subsections of Section 304. The
10

addition modification required by this subparagraph
11

shall be reduced to the extent that dividends were
12

included in base income of the unitary group for the
13

same taxable year and received by the taxpayer or by a
14

member of the taxpayer's unitary business group
15

(including amounts included in gross income under
16

Sections 951 through 964 of the Internal Revenue Code
17

and amounts included in gross income under Section 78
18

of the Internal Revenue Code) with respect to the
19

stock of the same person to whom the premiums and costs
20

were directly or indirectly paid, incurred, or
21

accrued. The preceding sentence does not apply to the
22

extent that the same dividends caused a reduction to
23

the addition modification required under Section
24

203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
25

Act;
26

(G-15) An amount equal to the credit allowable to

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1

the taxpayer under Section 218(a) of this Act,
2

determined without regard to Section 218(c) of this
3

Act;
4

(G-16) For taxable years ending on or after
5

December 31, 2017, an amount equal to the deduction
6

allowed under Section 199 of the Internal Revenue Code
7

for the taxable year;
8

(G-17) the amount that is claimed as a federal
9

deduction when computing the taxpayer's federal
10

taxable income for the taxable year and that is
11

attributable to an endowment gift for which the
12

taxpayer receives a credit under the Illinois Gives
13

Tax Credit Act;
14

and by deducting from the total so obtained the sum of the
15

following amounts:
16

(H) An amount equal to all amounts included in
17

such total pursuant to the provisions of Sections
18

402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
19

of the Internal Revenue Code or included in such total
20

as distributions under the provisions of any
21

retirement or disability plan for employees of any
22

governmental agency or unit, or retirement payments to
23

retired partners, which payments are excluded in
24

computing net earnings from self employment by Section
25

1402 of the Internal Revenue Code and regulations
26

adopted pursuant thereto;

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1

(I) The valuation limitation amount;
2

(J) 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

(K) An amount equal to all amounts included in
6

taxable income as modified by subparagraphs (A), (B),
7

(C), (D), (E), (F) and (G) which are exempt from
8

taxation by this State either by reason of its
9

statutes or Constitution or by reason of the
10

Constitution, treaties or statutes of the United
11

States; provided that, in the case of any statute of
12

this State that exempts income derived from bonds or
13

other obligations from the tax imposed under this Act,
14

the amount exempted shall be the interest net of bond
15

premium amortization;
16

(L) With the exception of any amounts subtracted
17

under subparagraph (K), an amount equal to the sum of
18

all amounts disallowed as deductions by (i) Sections
19

171(a)(2) and 265(a)(2) of the Internal Revenue Code,
20

and all amounts of expenses allocable to interest and
21

disallowed as deductions by Section 265(a)(1) of the
22

Internal Revenue Code; and (ii) for taxable years
23

ending on or after August 13, 1999, Sections
24

171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
25

Internal Revenue Code, plus, (iii) for taxable years
26

ending on or after December 31, 2011, Section

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1

45G(e)(3) of the Internal Revenue Code and, for
2

taxable years ending on or after December 31, 2008,
3

any amount included in gross income under Section 87
4

of the Internal Revenue Code; the provisions of this
5

subparagraph are exempt from the provisions of Section
6

250;
7

(M) An amount equal to those dividends included in
8

such total which were paid by a corporation which
9

conducts business operations in a River Edge
10

Redevelopment Zone or zones created under the River
11

Edge Redevelopment Zone Act and conducts substantially
12

all of its operations in a River Edge Redevelopment
13

Zone or zones. This subparagraph (M) is exempt from
14

the provisions of Section 250;
15

(N) An amount equal to any contribution made to a
16

job training project established pursuant to the Tax
17

Increment Allocation Redevelopment Act;
18

(O) 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
22

a High Impact Business located in Illinois; provided
23

that dividends eligible for the deduction provided in
24

subparagraph (M) of paragraph (2) of this subsection
25

shall not be eligible for the deduction provided under
26

this subparagraph (O);

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(P) An amount equal to the amount of the deduction
2

used to compute the federal income tax credit for
3

restoration of substantial amounts held under claim of
4

right for the taxable year pursuant to Section 1341 of
5

the Internal Revenue Code;
6

(Q) For taxable year 1999 and thereafter, an
7

amount equal to the amount of any (i) distributions,
8

to the extent includible in gross income for federal
9

income tax purposes, made to the taxpayer because of
10

his or her status as a victim of persecution for racial
11

or religious reasons by Nazi Germany or any other Axis
12

regime or as an heir of the victim and (ii) items of
13

income, to the extent includible in gross income for
14

federal income tax purposes, attributable to, derived
15

from or in any way related to assets stolen from,
16

hidden from, or otherwise lost to a victim of
17

persecution for racial or religious reasons by Nazi
18

Germany or any other Axis regime immediately prior to,
19

during, and immediately after World War II, including,
20

but not limited to, interest on the proceeds
21

receivable as insurance under policies issued to a
22

victim of persecution for racial or religious reasons
23

by Nazi Germany or any other Axis regime by European
24

insurance companies immediately prior to and during
25

World War II; provided, however, this subtraction from
26

federal adjusted gross income does not apply to assets

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1

acquired with such assets or with the proceeds from
2

the sale of such assets; provided, further, this
3

paragraph shall only apply to a taxpayer who was the
4

first recipient of such assets after their recovery
5

and who is a victim of persecution for racial or
6

religious reasons by Nazi Germany or any other Axis
7

regime or as an heir of the victim. The amount of and
8

the eligibility for any public assistance, benefit, or
9

similar entitlement is not affected by the inclusion
10

of items (i) and (ii) of this paragraph in gross income
11

for federal income tax purposes. This paragraph is
12

exempt from the provisions of Section 250;
13

(R) For taxable years 2001 and thereafter, for the
14

taxable year in which the bonus depreciation deduction
15

is taken on the taxpayer's federal income tax return
16

under subsection (k) of Section 168 of the Internal
17

Revenue Code and for each applicable taxable year
18

thereafter, an amount equal to "x", where:
19

(1) "y" equals the amount of the depreciation
20

deduction taken for the taxable year on the
21

taxpayer's federal income tax return on property
22

for which the bonus depreciation deduction was
23

taken in any year under subsection (k) of Section
24

168 of the Internal Revenue Code, but not
25

including the bonus depreciation deduction;
26

(2) for taxable years ending on or before

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1

December 31, 2005, "x" equals "y" multiplied by 30
2

and then divided by 70 (or "y" multiplied by
3

0.429); and
4

(3) for taxable years ending after December
5

31, 2005:
6

(i) for property on which a bonus
7

depreciation deduction of 30% of the adjusted
8

basis was taken, "x" equals "y" multiplied by
9

30 and then divided by 70 (or "y" multiplied
10

by 0.429);
11

(ii) for property on which a bonus
12

depreciation deduction of 50% of the adjusted
13

basis was taken, "x" equals "y" multiplied by
14

1.0;
15

(iii) for property on which a bonus
16

depreciation deduction of 100% of the adjusted
17

basis was taken in a taxable year ending on or
18

after December 31, 2021, "x" equals the
19

depreciation deduction that would be allowed
20

on that property if the taxpayer had made the
21

election under Section 168(k)(7) of the
22

Internal Revenue Code to not claim bonus
23

depreciation on that property; and
24

(iv) for property on which a bonus
25

depreciation deduction of a percentage other
26

than 30%, 50% or 100% of the adjusted basis

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1

was taken in a taxable year ending on or after
2

December 31, 2021, "x" equals "y" multiplied
3

by 100 times the percentage bonus depreciation
4

on the property (that is, 100(bonus%)) and
5

then divided by 100 times 1 minus the
6

percentage bonus depreciation on the property
7

(that is, 100(1-bonus%)).
8

The aggregate amount deducted under this
9

subparagraph in all taxable years for any one piece of
10

property may not exceed the amount of the bonus
11

depreciation deduction taken on that property on the
12

taxpayer's federal income tax return under subsection
13

(k) of Section 168 of the Internal Revenue Code. This
14

subparagraph (R) is exempt from the provisions of
15

Section 250;
16

(S) If the taxpayer sells, transfers, abandons, or
17

otherwise disposes of property for which the taxpayer
18

was required in any taxable year to make an addition
19

modification under subparagraph (G-10), then an amount
20

equal to that addition modification.
21

If the taxpayer continues to own property through
22

the last day of the last tax year for which a
23

subtraction is allowed with respect to that property
24

under subparagraph (R) and for which the taxpayer was
25

required in any taxable year to make an addition
26

modification under subparagraph (G-10), then an amount

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equal to that addition modification.
2

The taxpayer is allowed to take the deduction
3

under this subparagraph only once with respect to any
4

one piece of property.
5

This subparagraph (S) is exempt from the
6

provisions of Section 250;
7

(T) The amount of (i) any interest income (net of
8

the deductions allocable thereto) taken into account
9

for the taxable year with respect to a transaction
10

with a taxpayer that is required to make an addition
11

modification with respect to such transaction under
12

Section 203(a)(2)(D-17), 203(b)(2)(E-12),
13

203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
14

the amount of such addition modification and (ii) any
15

income from intangible property (net of the deductions
16

allocable thereto) taken into account for the taxable
17

year with respect to a transaction with a taxpayer
18

that is required to make an addition modification with
19

respect to such transaction under Section
20

203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
21

203(d)(2)(D-8), but not to exceed the amount of such
22

addition modification. This subparagraph (T) is exempt
23

from the provisions of Section 250;
24

(U) 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

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transactions with (i) a foreign person who would be a
2

member of the taxpayer's unitary business group but
3

for the fact 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(c)(2)(G-12) for
15

interest paid, accrued, or incurred, directly or
16

indirectly, to the same person. This subparagraph (U)
17

is exempt from the provisions of Section 250;
18

(V) 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
23

for the fact that the foreign person's business
24

activity outside the United States is 80% or more of
25

that person's total business activity and (ii) for
26

taxable years ending on or after December 31, 2008, to

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a person who would be a member of the same unitary
2

business group but for the fact that the person is
3

prohibited under Section 1501(a)(27) from being
4

included in the unitary business group because he or
5

she is ordinarily required to apportion business
6

income under different subsections of Section 304, but
7

not to exceed the addition modification required to be
8

made for the same taxable year under Section
9

203(c)(2)(G-13) for intangible expenses and costs
10

paid, accrued, or incurred, directly or indirectly, to
11

the same foreign person. This subparagraph (V) is
12

exempt from the provisions of Section 250;
13

(W) in the case of an estate, an amount equal to
14

all amounts included in such total pursuant to the
15

provisions of Section 111 of the Internal Revenue Code
16

as a recovery of items previously deducted by the
17

decedent from adjusted gross income in the computation
18

of taxable income. This subparagraph (W) is exempt
19

from Section 250;
20

(X) an amount equal to the refund included in such
21

total of any tax deducted for federal income tax
22

purposes, to the extent that deduction was added back
23

under subparagraph (F). This subparagraph (X) is
24

exempt from the provisions of Section 250;
25

(Y) For taxable years ending on or after December
26

31, 2011, in the case of a taxpayer who was required to

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add back any insurance premiums under Section
2

203(c)(2)(G-14), such taxpayer may elect to subtract
3

that part of a reimbursement received from the
4

insurance company equal to the amount of the expense
5

or loss (including expenses incurred by the insurance
6

company) that would have been taken into account as a
7

deduction for federal income tax purposes if the
8

expense or loss had been uninsured. If a taxpayer
9

makes the election provided for by this subparagraph
10

(Y), the insurer to which the premiums were paid must
11

add back to income the amount subtracted by the
12

taxpayer pursuant to this subparagraph (Y). This
13

subparagraph (Y) is exempt from the provisions of
14

Section 250;
15

(Z) For taxable years beginning after December 31,
16

2018 and before January 1, 2026, the amount of excess
17

business loss of the taxpayer disallowed as a
18

deduction by Section 461(l)(1)(B) of the Internal
19

Revenue Code; and
20

(AA) For taxable years beginning on or after
21

January 1, 2023, for any cannabis establishment
22

operating in this State and licensed under the
23

Cannabis Regulation and Tax Act or any cannabis
24

cultivation center or medical cannabis dispensing
25

organization operating in this State and licensed
26

under the Compassionate Use of Medical Cannabis

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Program Act, an amount equal to the deductions that
2

were disallowed under Section 280E of the Internal
3

Revenue Code for the taxable year and that would not be
4

added back under this subsection. The provisions of
5

this subparagraph (AA) are exempt from the provisions
6

of Section 250.
7

(3) Limitation. The amount of any modification
8

otherwise required under this subsection shall, under
9

regulations prescribed by the Department, be adjusted by
10

any amounts included therein which were properly paid,
11

credited, or required to be distributed, or permanently
12

set aside for charitable purposes pursuant to Internal
13

Revenue Code Section 642(c) during the taxable year.

14

(d) Partnerships.
15

(1) In general. In the case of a partnership, base
16

income means an amount equal to the taxpayer's taxable
17

income for the taxable year as modified by paragraph (2).
18

(2) Modifications. The taxable income referred to in
19

paragraph (1) shall be modified by adding thereto the sum
20

of the following amounts:
21

(A) An amount equal to all amounts paid or accrued
22

to the taxpayer as interest or dividends during the
23

taxable year to the extent excluded from gross income
24

in the computation of taxable income;
25

(B) An amount equal to the amount of tax imposed by

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this Act to the extent deducted from gross income for
2

the taxable year;
3

(C) The amount of deductions allowed to the
4

partnership pursuant to Section 707 (c) of the
5

Internal Revenue Code in calculating its taxable
6

income;
7

(D) An amount equal to the amount of the capital
8

gain deduction allowable under the Internal Revenue
9

Code, to the extent deducted from gross income in the
10

computation of taxable income;
11

(D-5) 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
15

the Internal Revenue Code;
16

(D-6) 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 (D-5), then
20

an amount equal to the aggregate amount of the
21

deductions taken in all taxable years under
22

subparagraph (O) 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 a
25

subtraction is allowed with respect to that property
26

under subparagraph (O) and for which the taxpayer was

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allowed in any taxable year to make a subtraction
2

modification under subparagraph (O), 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

(D-7) 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 the foreign person's business activity outside
14

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

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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
6

the same person to whom the interest was paid,
7

accrued, or 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

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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
7

or agreement entered into at arm's-length rates
8

and terms and the principal purpose for the
9

payment is not federal or Illinois tax avoidance;
10

or
11

(iv) an item of interest paid, accrued, or
12

incurred, directly or indirectly, to a person if
13

the taxpayer establishes by clear and convincing
14

evidence that the adjustments are unreasonable; or
15

if the taxpayer and the Director agree in writing
16

to the application or use of an alternative method
17

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
21

for any tax year beginning after the effective
22

date of this amendment provided such adjustment is
23

made pursuant to regulation adopted by the
24

Department and such regulations provide methods
25

and standards by which the Department will utilize
26

its authority under Section 404 of this Act; and

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(D-8) An amount equal to the amount of intangible
2

expenses and costs otherwise allowed as a deduction in
3

computing base income, and that were paid, accrued, or
4

incurred, directly or indirectly, (i) for taxable
5

years ending on or after December 31, 2004, to a
6

foreign person who would be a member of the same
7

unitary business group but for the fact that the
8

foreign person's business activity outside the United
9

States is 80% or more of that person's total business
10

activity and (ii) for taxable years ending on or after
11

December 31, 2008, to a person who would be a member of
12

the same unitary business group but for the fact that
13

the person is prohibited under Section 1501(a)(27)
14

from being included in the unitary business group
15

because he or she is ordinarily required to apportion
16

business income under different subsections of Section
17

304. The addition modification required by this
18

subparagraph shall be reduced to the extent that
19

dividends were included in base income of the unitary
20

group for the same taxable year and received by the
21

taxpayer or by a member of the taxpayer's unitary
22

business group (including amounts included in gross
23

income pursuant to Sections 951 through 964 of the
24

Internal Revenue Code and amounts included in gross
25

income under Section 78 of the Internal Revenue Code)
26

with respect to the stock of the same person to whom

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the intangible expenses and costs were directly or
2

indirectly paid, incurred or accrued. The preceding
3

sentence shall not apply to the extent that the same
4

dividends caused a reduction to the addition
5

modification required under Section 203(d)(2)(D-7) of
6

this Act. As used in this subparagraph, the term
7

"intangible expenses and costs" includes (1) expenses,
8

losses, and costs for, or related to, the direct or
9

indirect acquisition, use, maintenance or management,
10

ownership, sale, exchange, or any other disposition of
11

intangible property; (2) losses incurred, directly or
12

indirectly, from factoring transactions or discounting
13

transactions; (3) royalty, patent, technical, and
14

copyright fees; (4) licensing fees; and (5) other
15

similar expenses and costs. For purposes of this
16

subparagraph, "intangible property" includes patents,
17

patent applications, trade names, trademarks, service
18

marks, copyrights, mask works, trade secrets, and
19

similar types of intangible assets;
20

This paragraph shall not apply to the following:
21

(i) any item of intangible expenses or costs
22

paid, accrued, or incurred, directly or
23

indirectly, from a transaction with a person who
24

is subject in a foreign country or state, other
25

than a state which requires mandatory unitary
26

reporting, to a tax on or measured by net income

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1

with respect to such item; or
2

(ii) any item of intangible expense or cost
3

paid, accrued, or incurred, directly or
4

indirectly, if the taxpayer can establish, based
5

on a preponderance of the evidence, both of the
6

following:
7

(a) the person during the same taxable
8

year paid, accrued, or incurred, the
9

intangible expense or cost to a person that is
10

not a related member, and
11

(b) the transaction giving rise to the
12

intangible expense or cost between the
13

taxpayer and the person did not have as a
14

principal purpose the avoidance of Illinois
15

income tax, and is paid pursuant to a contract
16

or agreement that reflects arm's-length terms;
17

or
18

(iii) any item of intangible expense or cost
19

paid, accrued, or incurred, directly or
20

indirectly, from a transaction with a person if
21

the taxpayer establishes by clear and convincing
22

evidence, that the adjustments are unreasonable;
23

or if the taxpayer and the Director agree in
24

writing to the application or use of an
25

alternative method of apportionment under Section
26

304(f);

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Nothing in this subsection shall preclude the
2

Director from making any other adjustment
3

otherwise allowed under Section 404 of this Act
4

for any tax year beginning after the effective
5

date of this amendment provided such adjustment is
6

made pursuant to regulation adopted by the
7

Department and such regulations provide methods
8

and standards by which the Department will utilize
9

its authority under Section 404 of this Act;
10

(D-9) 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
4

stock of the same person to whom the premiums and costs
5

were directly or indirectly paid, incurred, or
6

accrued. The preceding sentence does not apply to the
7

extent that the same dividends caused a reduction to
8

the addition modification required under Section
9

203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
10

(D-10) An amount equal to the credit allowable to
11

the taxpayer under Section 218(a) of this Act,
12

determined without regard to Section 218(c) of this
13

Act;
14

(D-11) For taxable years ending on or after
15

December 31, 2017, an amount equal to the deduction
16

allowed under Section 199 of the Internal Revenue Code
17

for the taxable year;
18

(D-12) the amount that is claimed as a federal
19

deduction when computing the taxpayer's federal
20

taxable income for the taxable year and that is
21

attributable to an endowment gift for which the
22

taxpayer receives a credit under the Illinois Gives
23

Tax Credit Act;
24

and by deducting from the total so obtained the following
25

amounts:
26

(E) The valuation limitation amount;

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(F) An amount equal to the amount of any tax
2

imposed by this Act which was refunded to the taxpayer
3

and included in such total for the taxable year;
4

(G) An amount equal to all amounts included in
5

taxable income as modified by subparagraphs (A), (B),
6

(C) and (D) which are exempt from taxation by this
7

State either by reason of its statutes or Constitution
8

or by reason of the Constitution, treaties or statutes
9

of the 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
13

net of bond premium amortization;
14

(H) Any income of the partnership which
15

constitutes personal service income as defined in
16

Section 1348(b)(1) of the Internal Revenue Code (as in
17

effect December 31, 1981) or a reasonable allowance
18

for compensation paid or accrued for services rendered
19

by partners to the partnership, whichever is greater;
20

this subparagraph (H) is exempt from the provisions of
21

Section 250;
22

(I) An amount equal to all amounts of income
23

distributable to an entity subject to the Personal
24

Property Tax Replacement Income Tax imposed by
25

subsections (c) and (d) of Section 201 of this Act
26

including amounts distributable to organizations

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1

exempt from federal income tax by reason of Section
2

501(a) of the Internal Revenue Code; this subparagraph
3

(I) is exempt from the provisions of Section 250;
4

(J) With the exception of any amounts subtracted
5

under subparagraph (G), an amount equal to the sum of
6

all amounts disallowed as deductions by (i) Sections
7

171(a)(2) and 265(a)(2) of the Internal Revenue Code,
8

and all amounts of expenses allocable to interest and
9

disallowed as deductions by Section 265(a)(1) of the
10

Internal Revenue Code; and (ii) for taxable years
11

ending on or after August 13, 1999, Sections
12

171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
13

Internal Revenue Code, plus, (iii) for taxable years
14

ending on or after December 31, 2011, Section
15

45G(e)(3) of the Internal Revenue Code and, for
16

taxable years ending on or after December 31, 2008,
17

any amount included in gross income under Section 87
18

of the Internal Revenue Code; the provisions of this
19

subparagraph are exempt from the provisions of Section
20

250;
21

(K) An amount equal to those dividends included in
22

such total which were paid by a corporation which
23

conducts business operations in a River Edge
24

Redevelopment Zone or zones created under the River
25

Edge Redevelopment Zone Act and conducts substantially
26

all of its operations from a River Edge Redevelopment

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Zone or zones. This subparagraph (K) is exempt from
2

the provisions of Section 250;
3

(L) An amount equal to any contribution made to a
4

job training project established pursuant to the Real
5

Property Tax Increment Allocation Redevelopment Act;
6

(M) An amount equal to those dividends included in
7

such total that were paid by a corporation that
8

conducts business operations in a federally designated
9

Foreign Trade Zone or Sub-Zone and that is designated
10

a High Impact Business located in Illinois; provided
11

that dividends eligible for the deduction provided in
12

subparagraph (K) of paragraph (2) of this subsection
13

shall not be eligible for the deduction provided under
14

this subparagraph (M);
15

(N) An amount equal to the amount of the deduction
16

used to compute the federal income tax credit for
17

restoration of substantial amounts held under claim of
18

right for the taxable year pursuant to Section 1341 of
19

the Internal Revenue Code;
20

(O) For taxable years 2001 and thereafter, for the
21

taxable year in which the bonus depreciation deduction
22

is taken on the taxpayer's federal income tax return
23

under subsection (k) of Section 168 of the Internal
24

Revenue Code and for each applicable taxable year
25

thereafter, an amount equal to "x", where:
26

(1) "y" equals the amount of the depreciation

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deduction taken for the taxable year on the
2

taxpayer's federal income tax return on property
3

for which the bonus depreciation deduction was
4

taken in any year under subsection (k) of Section
5

168 of the Internal Revenue Code, but not
6

including the bonus depreciation deduction;
7

(2) for taxable years ending on or before
8

December 31, 2005, "x" equals "y" multiplied by 30
9

and then divided by 70 (or "y" multiplied by
10

0.429); and
11

(3) for taxable years ending after December
12

31, 2005:
13

(i) for property on which a bonus
14

depreciation deduction of 30% of the adjusted
15

basis was taken, "x" equals "y" multiplied by
16

30 and then divided by 70 (or "y" multiplied
17

by 0.429);
18

(ii) for property on which a bonus
19

depreciation deduction of 50% of the adjusted
20

basis was taken, "x" equals "y" multiplied by
21

1.0;
22

(iii) for property on which a bonus
23

depreciation deduction of 100% of the adjusted
24

basis was taken in a taxable year ending on or
25

after December 31, 2021, "x" equals the
26

depreciation deduction that would be allowed

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1

on that property if the taxpayer had made the
2

election under Section 168(k)(7) of the
3

Internal Revenue Code to not claim bonus
4

depreciation on that property; and
5

(iv) for property on which a bonus
6

depreciation deduction of a percentage other
7

than 30%, 50% or 100% of the adjusted basis
8

was taken in a taxable year ending on or after
9

December 31, 2021, "x" equals "y" multiplied
10

by 100 times the percentage bonus depreciation
11

on the property (that is, 100(bonus%)) and
12

then divided by 100 times 1 minus the
13

percentage bonus depreciation on the property
14

(that is, 100(1-bonus%)).
15

The aggregate amount deducted under this
16

subparagraph in all taxable years for any one piece of
17

property may not exceed the amount of the bonus
18

depreciation deduction taken on that property on the
19

taxpayer's federal income tax return under subsection
20

(k) of Section 168 of the Internal Revenue Code. This
21

subparagraph (O) is exempt from the provisions of
22

Section 250;
23

(P) If the taxpayer sells, transfers, abandons, or
24

otherwise disposes of property for which the taxpayer
25

was required in any taxable year to make an addition
26

modification under subparagraph (D-5), then an amount

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equal to that addition modification.
2

If the taxpayer continues to own property through
3

the last day of the last tax year for which a
4

subtraction is allowed with respect to that property
5

under subparagraph (O) and for which the taxpayer was
6

required in any taxable year to make an addition
7

modification under subparagraph (D-5), then an amount
8

equal to that addition modification.
9

The taxpayer is allowed to take the deduction
10

under this subparagraph only once with respect to any
11

one piece of property.
12

This subparagraph (P) is exempt from the
13

provisions of Section 250;
14

(Q) The amount of (i) any interest income (net of
15

the deductions allocable thereto) taken into account
16

for the taxable year with respect to a transaction
17

with a taxpayer that is required to make an addition
18

modification with respect to such transaction under
19

Section 203(a)(2)(D-17), 203(b)(2)(E-12),
20

203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
21

the amount of such addition modification and (ii) any
22

income from intangible property (net of the deductions
23

allocable thereto) taken into account for the taxable
24

year with respect to a transaction with a taxpayer
25

that is required to make an addition modification with
26

respect to such transaction under Section

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203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
2

203(d)(2)(D-8), but not to exceed the amount of such
3

addition modification. This subparagraph (Q) is exempt
4

from Section 250;
5

(R) An amount equal to the interest income taken
6

into account for the taxable year (net of the
7

deductions allocable thereto) with respect to
8

transactions with (i) a foreign person who would be a
9

member of the taxpayer's unitary business group but
10

for the fact that the foreign person's business
11

activity outside the United States is 80% or more of
12

that person's total business activity and (ii) for
13

taxable years ending on or after December 31, 2008, to
14

a person who would be a member of the same unitary
15

business group but for the fact that the person is
16

prohibited under Section 1501(a)(27) from being
17

included in the unitary business group because he or
18

she is ordinarily required to apportion business
19

income under different subsections of Section 304, but
20

not to exceed the addition modification required to be
21

made for the same taxable year under Section
22

203(d)(2)(D-7) for interest paid, accrued, or
23

incurred, directly or indirectly, to the same person.
24

This subparagraph (R) is exempt from Section 250;
25

(S) An amount equal to the income from intangible
26

property taken into account for the taxable year (net

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1

of the deductions allocable thereto) with respect to
2

transactions with (i) a foreign person who would be a
3

member of the taxpayer's unitary business group but
4

for the fact that the foreign person's business
5

activity outside the United States is 80% or more of
6

that person's total business activity and (ii) for
7

taxable years ending on or after December 31, 2008, to
8

a person who would be a member of the same unitary
9

business group but for the fact that the person is
10

prohibited under Section 1501(a)(27) from being
11

included in the unitary business group because he or
12

she is ordinarily required to apportion business
13

income under different subsections of Section 304, but
14

not to exceed the addition modification required to be
15

made for the same taxable year under Section
16

203(d)(2)(D-8) for intangible expenses and costs paid,
17

accrued, or incurred, directly or indirectly, to the
18

same person. This subparagraph (S) is exempt from
19

Section 250;
20

(T) For taxable years ending on or after December
21

31, 2011, in the case of a taxpayer who was required to
22

add back any insurance premiums under Section
23

203(d)(2)(D-9), such taxpayer may elect to subtract
24

that part of a reimbursement received from the
25

insurance company equal to the amount of the expense
26

or loss (including expenses incurred by the insurance

HB3280
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1

company) that would have been taken into account as a
2

deduction for federal income tax purposes if the
3

expense or loss had been uninsured. If a taxpayer
4

makes the election provided for by this subparagraph
5

(T), the insurer to which the premiums were paid must
6

add back to income the amount subtracted by the
7

taxpayer pursuant to this subparagraph (T). This
8

subparagraph (T) is exempt from the provisions of
9

Section 250; and
10

(U) For taxable years beginning on or after
11

January 1, 2023, for any cannabis establishment
12

operating in this State and licensed under the
13

Cannabis Regulation and Tax Act or any cannabis
14

cultivation center or medical cannabis dispensing
15

organization operating in this State and licensed
16

under the Compassionate Use of Medical Cannabis
17

Program Act, an amount equal to the deductions that
18

were disallowed under Section 280E of the Internal
19

Revenue Code for the taxable year and that would not be
20

added back under this subsection. The provisions of
21

this subparagraph (U) are exempt from the provisions
22

of Section 250.

23

(e) Gross income; adjusted gross income; taxable income.
24

(1) In general. Subject to the provisions of paragraph
25

(2) and subsection (b)(3), for purposes of this Section

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1

and Section 803(e), a taxpayer's gross income, adjusted
2

gross income, or taxable income for the taxable year shall
3

mean the amount of gross income, adjusted gross income or
4

taxable income properly reportable for federal income tax
5

purposes for the taxable year under the provisions of the
6

Internal Revenue Code. Taxable income may be less than
7

zero. However, for taxable years ending on or after
8

December 31, 1986, net operating loss carryforwards from
9

taxable years ending prior to December 31, 1986, may not
10

exceed the sum of federal taxable income for the taxable
11

year before net operating loss deduction, plus the excess
12

of addition modifications over subtraction modifications
13

for the taxable year. For taxable years ending prior to
14

December 31, 1986, taxable income may never be an amount
15

in excess of the net operating loss for the taxable year as
16

defined in subsections (c) and (d) of Section 172 of the
17

Internal Revenue Code, provided that when taxable income
18

of a corporation (other than a Subchapter S corporation),
19

trust, or estate is less than zero and addition
20

modifications, other than those provided by subparagraph
21

(E) of paragraph (2) of subsection (b) for corporations or
22

subparagraph (E) of paragraph (2) of subsection (c) for
23

trusts and estates, exceed subtraction modifications, an
24

addition modification must be made under those
25

subparagraphs for any other taxable year to which the
26

taxable income less than zero (net operating loss) is

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1

applied under Section 172 of the Internal Revenue Code or
2

under subparagraph (E) of paragraph (2) of this subsection
3

(e) applied in conjunction with Section 172 of the
4

Internal Revenue Code.
5

(2) Special rule. For purposes of paragraph (1) of
6

this subsection, the taxable income properly reportable
7

for federal income tax purposes shall mean:
8

(A) Certain life insurance companies. In the case
9

of a life insurance company subject to the tax imposed
10

by Section 801 of the Internal Revenue Code, life
11

insurance company taxable income, plus the amount of
12

distribution from pre-1984 policyholder surplus
13

accounts as calculated under Section 815a of the
14

Internal Revenue Code;
15

(B) Certain other insurance companies. In the case
16

of mutual insurance companies subject to the tax
17

imposed by Section 831 of the Internal Revenue Code,
18

insurance company taxable income;
19

(C) Regulated investment companies. In the case of
20

a regulated investment company subject to the tax
21

imposed by Section 852 of the Internal Revenue Code,
22

investment company taxable income;
23

(D) Real estate investment trusts. In the case of
24

a real estate investment trust subject to the tax
25

imposed by Section 857 of the Internal Revenue Code,
26

real estate investment trust taxable income;

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(E) Consolidated corporations. In the case of a
2

corporation which is a member of an affiliated group
3

of corporations filing a consolidated income tax
4

return for the taxable year for federal income tax
5

purposes, taxable income determined as if such
6

corporation had filed a separate return for federal
7

income tax purposes for the taxable year and each
8

preceding taxable year for which it was a member of an
9

affiliated group. For purposes of this subparagraph,
10

the taxpayer's separate taxable income shall be
11

determined as if the election provided by Section
12

243(b)(2) of the Internal Revenue Code had been in
13

effect for all such years;
14

(F) Cooperatives. In the case of a cooperative
15

corporation or association, the taxable income of such
16

organization determined in accordance with the
17

provisions of Section 1381 through 1388 of the
18

Internal Revenue Code, but without regard to the
19

prohibition against offsetting losses from patronage
20

activities against income from nonpatronage
21

activities; except that a cooperative corporation or
22

association may make an election to follow its federal
23

income tax treatment of patronage losses and
24

nonpatronage losses. In the event such election is
25

made, such losses shall be computed and carried over
26

in a manner consistent with subsection (a) of Section

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1

207 of this Act and apportioned by the apportionment
2

factor reported by the cooperative on its Illinois
3

income tax return filed for the taxable year in which
4

the losses are incurred. The election shall be
5

effective for all taxable years with original returns
6

due on or after the date of the election. In addition,
7

the cooperative may file an amended return or returns,
8

as allowed under this Act, to provide that the
9

election shall be effective for losses incurred or
10

carried forward for taxable years occurring prior to
11

the date of the election. Once made, the election may
12

only be revoked upon approval of the Director. The
13

Department shall adopt rules setting forth
14

requirements for documenting the elections and any
15

resulting Illinois net loss and the standards to be
16

used by the Director in evaluating requests to revoke
17

elections. Public Act 96-932 is declaratory of
18

existing law;
19

(G) Subchapter S corporations. In the case of: (i)
20

a Subchapter S corporation for which there is in
21

effect an election for the taxable year under Section
22

1362 of the Internal Revenue Code, the taxable income
23

of such corporation determined in accordance with
24

Section 1363(b) of the Internal Revenue Code, except
25

that taxable income shall take into account those
26

items which are required by Section 1363(b)(1) of the

HB3280
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1

Internal Revenue Code to be separately stated; and
2

(ii) a Subchapter S corporation for which there is in
3

effect a federal election to opt out of the provisions
4

of the Subchapter S Revision Act of 1982 and have
5

applied instead the prior federal Subchapter S rules
6

as in effect on July 1, 1982, the taxable income of
7

such corporation determined in accordance with the
8

federal Subchapter S rules as in effect on July 1,
9

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

HB3280
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1

asset or business. Such amount shall be apportioned to
2

Illinois using the greater of the apportionment fraction
3

computed for the business under Section 304 of this Act
4

for the taxable year or the average of the apportionment
5

fractions computed for the business under Section 304 of
6

this Act for the taxable year and for the 2 immediately
7

preceding 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;
17

plus
18

(B) The lesser of (i) the sum of the pre-August 1,
19

1969 appreciation amounts (to the extent consisting of
20

capital gain) for all property in respect of which
21

such gain was reported for federal income tax purposes
22

for the taxable year, or (ii) the net capital gain for
23

the taxable year, reduced in either case by any amount
24

of such gain included in the amount determined under
25

subsection (a)(2)(F) or (c)(2)(H).

HB3280
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1

(2) Pre-August 1, 1969 appreciation amount.
2

(A) If the fair market value of property referred
3

to in paragraph (1) was readily ascertainable on
4

August 1, 1969, the pre-August 1, 1969 appreciation
5

amount for such property is the lesser of (i) the
6

excess of such fair market value over the taxpayer's
7

basis (for determining gain) for such property on that
8

date (determined under the Internal Revenue Code as in
9

effect on that date), or (ii) the total gain realized
10

and reportable for federal income tax purposes in
11

respect of the sale, exchange or other disposition of
12

such property.
13

(B) If the fair market value of property referred
14

to in paragraph (1) was not readily ascertainable on
15

August 1, 1969, the pre-August 1, 1969 appreciation
16

amount for such property is that amount which bears
17

the same ratio to the total gain reported in respect of
18

the property for federal income tax purposes for the
19

taxable year, as the number of full calendar months in
20

that part of the taxpayer's holding period for the
21

property ending July 31, 1969 bears to the number of
22

full calendar months in the taxpayer's entire holding
23

period for the property.
24

(C) The Department shall prescribe such
25

regulations as may be necessary to carry out the
26

purposes of this paragraph.

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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. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
14
102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff.
15
12-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; 103-592,
16
Article 10, Section 10-900, eff. 6-7-24; 103-592, Article 170,
17
Section 170-90, eff. 6-7-24; 103-605, eff. 7-1-24; 103-647,
18
eff. 7-1-24; revised 8-20-24.)

19

Section 99.
Effective date.
This Act takes effect upon
20
becoming law.

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