INC TX-UNION DUES

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB1543

Introduced 2/4/2025, by Sen. Ram Villivalam

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 specified
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 10140 HLH 20212 b

A BILL FOR

SB1543
LRB104 10140 HLH 20212 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 10140 HLH 20212 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 10140 HLH 20212 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

SB1543
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LRB104 10140 HLH 20212 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

SB1543
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LRB104 10140 HLH 20212 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

SB1543
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LRB104 10140 HLH 20212 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

SB1543
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LRB104 10140 HLH 20212 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

SB1543
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LRB104 10140 HLH 20212 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

SB1543
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LRB104 10140 HLH 20212 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

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LRB104 10140 HLH 20212 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

SB1543
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LRB104 10140 HLH 20212 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

SB1543
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LRB104 10140 HLH 20212 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

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LRB104 10140 HLH 20212 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

SB1543
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LRB104 10140 HLH 20212 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

SB1543
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LRB104 10140 HLH 20212 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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1

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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LRB104 10140 HLH 20212 b
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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LRB104 10140 HLH 20212 b
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

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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 10140 HLH 20212 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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1

shall be a percentage of the union dues disallowed by
2

the operation of Section 67 of the Internal Revenue
3

Code computed by multiplying the total union dues paid
4

by the taxpayer during the taxable year by a
5

percentage determined by subtracting from one a
6

fraction where the numerator is the amount of federal
7

miscellaneous deductions allowed and the denominator
8

is the aggregate federal miscellaneous itemized
9

deductions before application of the 2% floor under
10

Section 67 of the Internal Revenue Code. As used in
11

this subparagraph (NN), union dues are those amounts
12

that are deductible as union dues and agency shop fees
13

under Section 162 of the Internal Revenue Code. This
14

subparagraph (NN) is exempt from the provisions of
15

Section 250.

16

(b) Corporations.
17

(1) In general. In the case of a corporation, base
18

income means an amount equal to the taxpayer's taxable
19

income for the taxable year as modified by paragraph (2).
20

(2) Modifications. The taxable income referred to in
21

paragraph (1) shall be modified by adding thereto the sum
22

of the following amounts:
23

(A) An amount equal to all amounts paid or accrued
24

to the taxpayer as interest and all distributions
25

received from regulated investment companies during

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1

the taxable year to the extent excluded from gross
2

income in the computation of taxable income;
3

(B) An amount equal to the amount of tax imposed by
4

this Act to the extent deducted from gross income in
5

the computation of taxable income for the taxable
6

year;
7

(C) In the case of a regulated investment company,
8

an amount equal to the excess of (i) the net long-term
9

capital gain for the taxable year, over (ii) the
10

amount of the capital gain dividends designated as
11

such in accordance with Section 852(b)(3)(C) of the
12

Internal Revenue Code and any amount designated under
13

Section 852(b)(3)(D) of the Internal Revenue Code,
14

attributable to the taxable year (this amendatory Act
15

of 1995 (Public Act 89-89) is declarative of existing
16

law and is not a new enactment);
17

(D) The amount of any net operating loss deduction
18

taken in arriving at taxable income, other than a net
19

operating loss carried forward from a taxable year
20

ending prior to December 31, 1986;
21

(E) For taxable years in which a net operating
22

loss carryback or carryforward from a taxable year
23

ending prior to December 31, 1986 is an element of
24

taxable income under paragraph (1) of subsection (e)
25

or subparagraph (E) of paragraph (2) of subsection
26

(e), the amount by which addition modifications other

SB1543
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LRB104 10140 HLH 20212 b
1

than those provided by this subparagraph (E) exceeded
2

subtraction modifications in such earlier taxable
3

year, with the following limitations applied in the
4

order that they are listed:
5

(i) the addition modification relating to the
6

net operating loss carried back or forward to the
7

taxable year from any taxable year ending prior to
8

December 31, 1986 shall be reduced by the amount
9

of addition modification under this subparagraph
10

(E) which related to that net operating loss and
11

which was taken into account in calculating the
12

base income of an earlier taxable year, and
13

(ii) the addition modification relating to the
14

net operating loss carried back or forward to the
15

taxable year from any taxable year ending prior to
16

December 31, 1986 shall not exceed the amount of
17

such carryback or carryforward;
18

For taxable years in which there is a net
19

operating loss carryback or carryforward from more
20

than one other taxable year ending prior to December
21

31, 1986, the addition modification provided in this
22

subparagraph (E) shall be the sum of the amounts
23

computed independently under the preceding provisions
24

of this subparagraph (E) for each such taxable year;
25

(E-5) For taxable years ending after December 31,
26

1997, an amount equal to any eligible remediation

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1

costs that the corporation deducted in computing
2

adjusted gross income and for which the corporation
3

claims a credit under subsection (l) of Section 201;
4

(E-10) For taxable years 2001 and thereafter, an
5

amount equal to the bonus depreciation deduction taken
6

on the taxpayer's federal income tax return for the
7

taxable year under subsection (k) of Section 168 of
8

the Internal Revenue Code;
9

(E-11) 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 (E-10), then
13

an amount equal to the aggregate amount of the
14

deductions taken in all taxable years under
15

subparagraph (T) with respect to that property.
16

If the taxpayer continues to own property through
17

the last day of the last tax year for which a
18

subtraction is allowed with respect to that property
19

under subparagraph (T) and for which the taxpayer was
20

allowed in any taxable year to make a subtraction
21

modification under subparagraph (T), then an amount
22

equal to that subtraction modification.
23

The taxpayer is required to make the addition
24

modification under this subparagraph only once with
25

respect to any one piece of property;
26

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

SB1543
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1

allowed as a deduction in computing base income for
2

interest paid, accrued, or incurred, directly or
3

indirectly, (i) for taxable years ending on or after
4

December 31, 2004, to a foreign person who would be a
5

member of the same unitary business group but for the
6

fact the foreign person's business activity outside
7

the United States is 80% or more of the foreign
8

person's total business activity and (ii) for taxable
9

years ending on or after December 31, 2008, to a person
10

who would be a member of the same unitary business
11

group but for the fact that the person is prohibited
12

under Section 1501(a)(27) from being included in the
13

unitary business group because he or she is ordinarily
14

required to apportion business income under different
15

subsections of Section 304. The addition modification
16

required by this subparagraph shall be reduced to the
17

extent that dividends were included in base income of
18

the unitary group for the same taxable year and
19

received by the taxpayer or by a member of the
20

taxpayer's unitary business group (including amounts
21

included in gross income pursuant to Sections 951
22

through 964 of the Internal Revenue Code and amounts
23

included in gross income under Section 78 of the
24

Internal Revenue Code) with respect to the stock of
25

the same person to whom the interest was paid,
26

accrued, or incurred.

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1

This paragraph shall not apply to the following:
2

(i) an item of interest paid, accrued, or
3

incurred, directly or indirectly, to a person who
4

is subject in a foreign country or state, other
5

than a state which requires mandatory unitary
6

reporting, to a tax on or measured by net income
7

with respect to such interest; or
8

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

incurred, directly or indirectly, to a person if
10

the taxpayer can establish, based on a
11

preponderance of the evidence, both of the
12

following:
13

(a) the person, during the same taxable
14

year, paid, accrued, or incurred, the interest
15

to a person that is not a related member, and
16

(b) the transaction giving rise to the
17

interest expense between the taxpayer and the
18

person did not have as a principal purpose the
19

avoidance of Illinois income tax, and is paid
20

pursuant to a contract or agreement that
21

reflects an arm's-length interest rate and
22

terms; or
23

(iii) the taxpayer can establish, based on
24

clear and convincing evidence, that the interest
25

paid, accrued, or incurred relates to a contract
26

or agreement entered into at arm's-length rates

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and terms and the principal purpose for the
2

payment is not federal or Illinois tax avoidance;
3

or
4

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

incurred, directly or indirectly, to a person if
6

the taxpayer establishes by clear and convincing
7

evidence that the adjustments are unreasonable; or
8

if the taxpayer and the Director agree in writing
9

to the application or use of an alternative method
10

of apportionment under Section 304(f).
11

Nothing in this subsection shall preclude the
12

Director from making any other adjustment
13

otherwise allowed under Section 404 of this Act
14

for any tax year beginning after the effective
15

date of this amendment provided such adjustment is
16

made pursuant to regulation adopted by the
17

Department and such regulations provide methods
18

and standards by which the Department will utilize
19

its authority under Section 404 of this Act;
20

(E-13) An amount equal to the amount of intangible
21

expenses and costs otherwise allowed as a deduction in
22

computing base income, and that were paid, accrued, or
23

incurred, directly or indirectly, (i) for taxable
24

years ending on or after December 31, 2004, to a
25

foreign person who would be a member of the same
26

unitary business group but for the fact that the

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foreign person's business activity outside the United
2

States is 80% or more of that person's total business
3

activity and (ii) for taxable years ending on or after
4

December 31, 2008, to a person who would be a member of
5

the same unitary business group but for the fact that
6

the person is prohibited under Section 1501(a)(27)
7

from being included in the unitary business group
8

because he or she is ordinarily required to apportion
9

business income under different subsections of Section
10

304. The addition modification required by this
11

subparagraph shall be reduced to the extent that
12

dividends were included in base income of the unitary
13

group for the same taxable year and received by the
14

taxpayer or by a member of the taxpayer's unitary
15

business group (including amounts included in gross
16

income pursuant to Sections 951 through 964 of the
17

Internal Revenue Code and amounts included in gross
18

income under Section 78 of the Internal Revenue Code)
19

with respect to the stock of the same person to whom
20

the intangible expenses and costs were directly or
21

indirectly paid, incurred, or accrued. The preceding
22

sentence shall not apply to the extent that the same
23

dividends caused a reduction to the addition
24

modification required under Section 203(b)(2)(E-12) of
25

this Act. As used in this subparagraph, the term
26

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

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1

losses, and costs for, or related to, the direct or
2

indirect acquisition, use, maintenance or management,
3

ownership, sale, exchange, or any other disposition of
4

intangible property; (2) losses incurred, directly or
5

indirectly, from factoring transactions or discounting
6

transactions; (3) royalty, patent, technical, and
7

copyright fees; (4) licensing fees; and (5) other
8

similar expenses and costs. For purposes of this
9

subparagraph, "intangible property" includes patents,
10

patent applications, trade names, trademarks, service
11

marks, copyrights, mask works, trade secrets, and
12

similar types of intangible assets.
13

This paragraph shall not apply to the following:
14

(i) any item of intangible expenses or costs
15

paid, accrued, or incurred, directly or
16

indirectly, from a transaction with a person who
17

is subject in a foreign country or state, other
18

than a state which requires mandatory unitary
19

reporting, to a tax on or measured by net income
20

with respect to such item; or
21

(ii) any item of intangible expense or cost
22

paid, accrued, or incurred, directly or
23

indirectly, if the taxpayer can establish, based
24

on a preponderance of the evidence, both of the
25

following:
26

(a) the person during the same taxable

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year paid, accrued, or incurred, the
2

intangible expense or cost to a person that is
3

not a related member, and
4

(b) the transaction giving rise to the
5

intangible expense or cost between the
6

taxpayer and the person did not have as a
7

principal purpose the avoidance of Illinois
8

income tax, and is paid pursuant to a contract
9

or agreement that reflects arm's-length terms;
10

or
11

(iii) any item of intangible expense or cost
12

paid, accrued, or incurred, directly or
13

indirectly, from a transaction with a person if
14

the taxpayer establishes by clear and convincing
15

evidence, that the adjustments are unreasonable;
16

or if the taxpayer and the Director agree in
17

writing to the application or use of an
18

alternative method of apportionment under Section
19

304(f);
20

Nothing in this subsection shall preclude the
21

Director from making any other adjustment
22

otherwise allowed under Section 404 of this Act
23

for any tax year beginning after the effective
24

date of this amendment provided such adjustment is
25

made pursuant to regulation adopted by the
26

Department and such regulations provide methods

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1

and standards by which the Department will utilize
2

its authority under Section 404 of this Act;
3

(E-14) For taxable years ending on or after
4

December 31, 2008, an amount equal to the amount of
5

insurance premium expenses and costs otherwise allowed
6

as a deduction in computing base income, and that were
7

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

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

business group but for the fact that the person is
10

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

included in the unitary business group because he or
12

she is ordinarily required to apportion business
13

income under different subsections of Section 304. The
14

addition modification required by this subparagraph
15

shall be reduced to the extent that dividends were
16

included in base income of the unitary group for the
17

same taxable year and received by the taxpayer or by a
18

member of the taxpayer's unitary business group
19

(including amounts included in gross income under
20

Sections 951 through 964 of the Internal Revenue Code
21

and amounts included in gross income under Section 78
22

of the Internal Revenue Code) with respect to the
23

stock of the same person to whom the premiums and costs
24

were directly or indirectly paid, incurred, or
25

accrued. The preceding sentence does not apply to the
26

extent that the same dividends caused a reduction to

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1

the addition modification required under Section
2

203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
3

Act;
4

(E-15) For taxable years beginning after December
5

31, 2008, any deduction for dividends paid by a
6

captive real estate investment trust that is allowed
7

to a real estate investment trust under Section
8

857(b)(2)(B) of the Internal Revenue Code for
9

dividends paid;
10

(E-16) 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

(E-17) 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

(E-18) for taxable years beginning after December
19

31, 2018, an amount equal to the deduction allowed
20

under Section 250(a)(1)(A) of the Internal Revenue
21

Code for the taxable year;
22

(E-19) for taxable years ending on or after June
23

30, 2021, an amount equal to the deduction allowed
24

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

Code for the taxable year;
26

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

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1

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

under Sections 243(e) and 245A(a) of the Internal
3

Revenue Code for the taxable year;
4

(E-21) the amount that is claimed as a federal
5

deduction when computing the taxpayer's federal
6

taxable income for the taxable year and that is
7

attributable to an endowment gift for which the
8

taxpayer receives a credit under the Illinois Gives
9

Tax Credit Act;
10

and by deducting from the total so obtained the sum of the
11

following amounts:
12

(F) An amount equal to the amount of any tax
13

imposed by this Act which was refunded to the taxpayer
14

and included in such total for the taxable year;
15

(G) An amount equal to any amount included in such
16

total under Section 78 of the Internal Revenue Code;
17

(H) In the case of a regulated investment company,
18

an amount equal to the amount of exempt interest
19

dividends as defined in subsection (b)(5) of Section
20

852 of the Internal Revenue Code, paid to shareholders
21

for the taxable year;
22

(I) With the exception of any amounts subtracted
23

under subparagraph (J), an amount equal to the sum of
24

all amounts disallowed as deductions by (i) Sections
25

171(a)(2) and 265(a)(2) and amounts disallowed as
26

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

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1

Revenue Code, and all amounts of expenses allocable to
2

interest and disallowed as deductions by Section
3

265(a)(1) of the Internal Revenue Code; and (ii) for
4

taxable years ending on or after August 13, 1999,
5

Sections 171(a)(2), 265, 280C, 291(a)(3), and
6

832(b)(5)(B)(i) of the Internal Revenue Code, plus,
7

for tax years ending on or after December 31, 2011,
8

amounts disallowed as deductions by Section 45G(e)(3)
9

of the Internal Revenue Code and, for taxable years
10

ending on or after December 31, 2008, any amount
11

included in gross income under Section 87 of the
12

Internal Revenue Code and the policyholders' share of
13

tax-exempt interest of a life insurance company under
14

Section 807(a)(2)(B) of the Internal Revenue Code (in
15

the case of a life insurance company with gross income
16

from a decrease in reserves for the tax year) or
17

Section 807(b)(1)(B) of the Internal Revenue Code (in
18

the case of a life insurance company allowed a
19

deduction for an increase in reserves for the tax
20

year); the provisions of this subparagraph are exempt
21

from the provisions of Section 250;
22

(J) An amount equal to all amounts included in
23

such total which are exempt from taxation by this
24

State either by reason of its statutes or Constitution
25

or by reason of the Constitution, treaties or statutes
26

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

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statute of this State that exempts income derived from
2

bonds or other obligations from the tax imposed under
3

this Act, the amount exempted shall be the interest
4

net of bond premium amortization;
5

(K) An amount equal to those dividends included in
6

such total which were paid by a corporation which
7

conducts business operations in a River Edge
8

Redevelopment Zone or zones created under the River
9

Edge Redevelopment Zone Act and conducts substantially
10

all of its operations in a River Edge Redevelopment
11

Zone or zones. This subparagraph (K) is exempt from
12

the provisions of Section 250;
13

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

such total that were paid by a corporation that
15

conducts business operations in a federally designated
16

Foreign Trade Zone or Sub-Zone and that is designated
17

a High Impact Business located in Illinois; provided
18

that dividends eligible for the deduction provided in
19

subparagraph (K) of paragraph 2 of this subsection
20

shall not be eligible for the deduction provided under
21

this subparagraph (L);
22

(M) For any taxpayer that is a financial
23

organization within the meaning of Section 304(c) of
24

this Act, an amount included in such total as interest
25

income from a loan or loans made by such taxpayer to a
26

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

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1

property which is eligible for the River Edge
2

Redevelopment Zone Investment Credit. To determine the
3

portion of a loan or loans that is secured by property
4

eligible for a Section 201(f) investment credit to the
5

borrower, the entire principal amount of the loan or
6

loans between the taxpayer and the borrower should be
7

divided into the basis of the Section 201(f)
8

investment credit property which secures the loan or
9

loans, using for this purpose the original basis of
10

such property on the date that it was placed in service
11

in the River Edge Redevelopment Zone. The subtraction
12

modification available to the taxpayer in any year
13

under this subsection shall be that portion of the
14

total interest paid by the borrower with respect to
15

such loan attributable to the eligible property as
16

calculated under the previous sentence. This
17

subparagraph (M) is exempt from the provisions of
18

Section 250;
19

(M-1) For any taxpayer that is a financial
20

organization within the meaning of Section 304(c) of
21

this Act, an amount included in such total as interest
22

income from a loan or loans made by such taxpayer to a
23

borrower, to the extent that such a loan is secured by
24

property which is eligible for the High Impact
25

Business Investment Credit. To determine the portion
26

of a loan or loans that is secured by property eligible

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1

for a Section 201(h) investment credit to the
2

borrower, the entire principal amount of the loan or
3

loans between the taxpayer and the borrower should be
4

divided into the basis of the Section 201(h)
5

investment credit property which secures the loan or
6

loans, using for this purpose the original basis of
7

such property on the date that it was placed in service
8

in a federally designated Foreign Trade Zone or
9

Sub-Zone located in Illinois. No taxpayer that is
10

eligible for the deduction provided in subparagraph
11

(M) of paragraph (2) of this subsection shall be
12

eligible for the deduction provided under this
13

subparagraph (M-1). The subtraction modification
14

available to taxpayers in any year under this
15

subsection shall be that portion of the total interest
16

paid by the borrower with respect to such loan
17

attributable to the eligible property as calculated
18

under the previous sentence;
19

(N) Two times any contribution made during the
20

taxable year to a designated zone organization to the
21

extent that the contribution (i) qualifies as a
22

charitable contribution under subsection (c) of
23

Section 170 of the Internal Revenue Code and (ii)
24

must, by its terms, be used for a project approved by
25

the Department of Commerce and Economic Opportunity
26

under Section 11 of the Illinois Enterprise Zone Act

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or under Section 10-10 of the River Edge Redevelopment
2

Zone Act. This subparagraph (N) is exempt from the
3

provisions of Section 250;
4

(O) An amount equal to: (i) 85% for taxable years
5

ending on or before December 31, 1992, or, a
6

percentage equal to the percentage allowable under
7

Section 243(a)(1) of the Internal Revenue Code of 1986
8

for taxable years ending after December 31, 1992, of
9

the amount by which dividends included in taxable
10

income and received from a corporation that is not
11

created or organized under the laws of the United
12

States or any state or political subdivision thereof,
13

including, for taxable years ending on or after
14

December 31, 1988, dividends received or deemed
15

received or paid or deemed paid under Sections 951
16

through 965 of the Internal Revenue Code, exceed the
17

amount of the modification provided under subparagraph
18

(G) of paragraph (2) of this subsection (b) which is
19

related to such dividends, and including, for taxable
20

years ending on or after December 31, 2008, dividends
21

received from a captive real estate investment trust;
22

plus (ii) 100% of the amount by which dividends,
23

included in taxable income and received, including,
24

for taxable years ending on or after December 31,
25

1988, dividends received or deemed received or paid or
26

deemed paid under Sections 951 through 964 of the

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1

Internal Revenue Code and including, for taxable years
2

ending on or after December 31, 2008, dividends
3

received from a captive real estate investment trust,
4

from any such corporation specified in clause (i) that
5

would but for the provisions of Section 1504(b)(3) of
6

the Internal Revenue Code be treated as a member of the
7

affiliated group which includes the dividend
8

recipient, exceed the amount of the modification
9

provided under subparagraph (G) of paragraph (2) of
10

this subsection (b) which is related to such
11

dividends. For taxable years ending on or after June
12

30, 2021, (i) for purposes of this subparagraph, the
13

term "dividend" does not include any amount treated as
14

a dividend under Section 1248 of the Internal Revenue
15

Code, and (ii) this subparagraph shall not apply to
16

dividends for which a deduction is allowed under
17

Section 245(a) of the Internal Revenue Code. This
18

subparagraph (O) is exempt from the provisions of
19

Section 250 of this Act;
20

(P) An amount equal to any contribution made to a
21

job training project established pursuant to the Tax
22

Increment Allocation Redevelopment Act;
23

(Q) An amount equal to the amount of the deduction
24

used to compute the federal income tax credit for
25

restoration of substantial amounts held under claim of
26

right for the taxable year pursuant to Section 1341 of

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1

the Internal Revenue Code;
2

(R) On and after July 20, 1999, in the case of an
3

attorney-in-fact with respect to whom an interinsurer
4

or a reciprocal insurer has made the election under
5

Section 835 of the Internal Revenue Code, 26 U.S.C.
6

835, an amount equal to the excess, if any, of the
7

amounts paid or incurred by that interinsurer or
8

reciprocal insurer in the taxable year to the
9

attorney-in-fact over the deduction allowed to that
10

interinsurer or reciprocal insurer with respect to the
11

attorney-in-fact under Section 835(b) of the Internal
12

Revenue Code for the taxable year; the provisions of
13

this subparagraph are exempt from the provisions of
14

Section 250;
15

(S) For taxable years ending on or after December
16

31, 1997, in the case of a Subchapter S corporation, an
17

amount equal to all amounts of income allocable to a
18

shareholder subject to the Personal Property Tax
19

Replacement Income Tax imposed by subsections (c) and
20

(d) of Section 201 of this Act, including amounts
21

allocable to organizations exempt from federal income
22

tax by reason of Section 501(a) of the Internal
23

Revenue Code. This subparagraph (S) is exempt from the
24

provisions of Section 250;
25

(T) For taxable years 2001 and thereafter, for the
26

taxable year in which the bonus depreciation deduction

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1

is taken on the taxpayer's federal income tax return
2

under subsection (k) of Section 168 of the Internal
3

Revenue Code and for each applicable taxable year
4

thereafter, an amount equal to "x", where:
5

(1) "y" equals the amount of the depreciation
6

deduction taken for the taxable year on the
7

taxpayer's federal income tax return on property
8

for which the bonus depreciation deduction was
9

taken in any year under subsection (k) of Section
10

168 of the Internal Revenue Code, but not
11

including the bonus depreciation deduction;
12

(2) for taxable years ending on or before
13

December 31, 2005, "x" equals "y" multiplied by 30
14

and then divided by 70 (or "y" multiplied by
15

0.429); and
16

(3) for taxable years ending after December
17

31, 2005:
18

(i) for property on which a bonus
19

depreciation deduction of 30% of the adjusted
20

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

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

by 0.429);
23

(ii) for property on which a bonus
24

depreciation deduction of 50% of the adjusted
25

basis was taken, "x" equals "y" multiplied by
26

1.0;

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1

(iii) for property on which a bonus
2

depreciation deduction of 100% of the adjusted
3

basis was taken in a taxable year ending on or
4

after December 31, 2021, "x" equals the
5

depreciation deduction that would be allowed
6

on that property if the taxpayer had made the
7

election under Section 168(k)(7) of the
8

Internal Revenue Code to not claim bonus
9

depreciation on that property; and
10

(iv) for property on which a bonus
11

depreciation deduction of a percentage other
12

than 30%, 50% or 100% of the adjusted basis
13

was taken in a taxable year ending on or after
14

December 31, 2021, "x" equals "y" multiplied
15

by 100 times the percentage bonus depreciation
16

on the property (that is, 100(bonus%)) and
17

then divided by 100 times 1 minus the
18

percentage bonus depreciation on the property
19

(that is, 100(1-bonus%)).
20

The aggregate amount deducted under this
21

subparagraph in all taxable years for any one piece of
22

property may not exceed the amount of the bonus
23

depreciation deduction taken on that property on the
24

taxpayer's federal income tax return under subsection
25

(k) of Section 168 of the Internal Revenue Code. This
26

subparagraph (T) is exempt from the provisions of

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1

Section 250;
2

(U) If the taxpayer sells, transfers, abandons, or
3

otherwise disposes of property for which the taxpayer
4

was required in any taxable year to make an addition
5

modification under subparagraph (E-10), then an amount
6

equal to that addition modification.
7

If the taxpayer continues to own property through
8

the last day of the last tax year for which a
9

subtraction is allowed with respect to that property
10

under subparagraph (T) and for which the taxpayer was
11

required in any taxable year to make an addition
12

modification under subparagraph (E-10), then an amount
13

equal to that addition modification.
14

The taxpayer is allowed to take the deduction
15

under this subparagraph only once with respect to any
16

one piece of property.
17

This subparagraph (U) is exempt from the
18

provisions of Section 250;
19

(V) The amount of: (i) any interest income (net of
20

the deductions allocable thereto) taken into account
21

for the taxable year with respect to a transaction
22

with a taxpayer that is required to make an addition
23

modification with respect to such transaction under
24

Section 203(a)(2)(D-17), 203(b)(2)(E-12),
25

203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
26

the amount of such addition modification, (ii) any

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1

income from intangible property (net of the deductions
2

allocable thereto) taken into account for the taxable
3

year with respect to a transaction with a taxpayer
4

that is required to make an addition modification with
5

respect to such transaction under Section
6

203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
7

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

addition modification, and (iii) any insurance premium
9

income (net of deductions allocable thereto) taken
10

into account for the taxable year with respect to a
11

transaction with a taxpayer that is required to make
12

an addition modification with respect to such
13

transaction under Section 203(a)(2)(D-19), Section
14

203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
15

203(d)(2)(D-9), but not to exceed the amount of that
16

addition modification. This subparagraph (V) is exempt
17

from the provisions of Section 250;
18

(W) An amount equal to the interest income taken
19

into account for the taxable year (net of the
20

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(b)(2)(E-12) for interest paid, accrued, or
10

incurred, directly or indirectly, to the same person.
11

This subparagraph (W) is exempt from the provisions of
12

Section 250;
13

(X) An amount equal to the income from intangible
14

property taken into account for the taxable year (net
15

of the deductions allocable thereto) with respect to
16

transactions with (i) a foreign person who would be a
17

member of the taxpayer's unitary business group but
18

for the fact that the foreign person's business
19

activity outside the United States is 80% or more of
20

that person's total business activity and (ii) for
21

taxable years ending on or after December 31, 2008, to
22

a person who would be a member of the same unitary
23

business group but for the fact that the person is
24

prohibited under Section 1501(a)(27) from being
25

included in the unitary business group because he or
26

she is ordinarily required to apportion business

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income under different subsections of Section 304, but
2

not to exceed the addition modification required to be
3

made for the same taxable year under Section
4

203(b)(2)(E-13) for intangible expenses and costs
5

paid, accrued, or incurred, directly or indirectly, to
6

the same foreign person. This subparagraph (X) is
7

exempt from the provisions of Section 250;
8

(Y) For taxable years ending on or after December
9

31, 2011, in the case of a taxpayer who was required to
10

add back any insurance premiums under Section
11

203(b)(2)(E-14), such taxpayer may elect to subtract
12

that part of a reimbursement received from the
13

insurance company equal to the amount of the expense
14

or loss (including expenses incurred by the insurance
15

company) that would have been taken into account as a
16

deduction for federal income tax purposes if the
17

expense or loss had been uninsured. If a taxpayer
18

makes the election provided for by this subparagraph
19

(Y), the insurer to which the premiums were paid must
20

add back to income the amount subtracted by the
21

taxpayer pursuant to this subparagraph (Y). This
22

subparagraph (Y) is exempt from the provisions of
23

Section 250;
24

(Z) The difference between the nondeductible
25

controlled foreign corporation dividends under Section
26

965(e)(3) of the Internal Revenue Code over the

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taxable income of the taxpayer, computed without
2

regard to Section 965(e)(2)(A) of the Internal Revenue
3

Code, and without regard to any net operating loss
4

deduction. This subparagraph (Z) is exempt from the
5

provisions of Section 250; and
6

(AA) For taxable years beginning on or after
7

January 1, 2023, for any cannabis establishment
8

operating in this State and licensed under the
9

Cannabis Regulation and Tax Act or any cannabis
10

cultivation center or medical cannabis dispensing
11

organization operating in this State and licensed
12

under the Compassionate Use of Medical Cannabis
13

Program Act, an amount equal to the deductions that
14

were disallowed under Section 280E of the Internal
15

Revenue Code for the taxable year and that would not be
16

added back under this subsection. The provisions of
17

this subparagraph (AA) are exempt from the provisions
18

of Section 250.
19

(3) Special rule. For purposes of paragraph (2)(A),
20

"gross income" in the case of a life insurance company,
21

for tax years ending on and after December 31, 1994, and
22

prior to December 31, 2011, shall mean the gross
23

investment income for the taxable year and, for tax years
24

ending on or after December 31, 2011, shall mean all
25

amounts included in life insurance gross income under
26

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

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(c) Trusts and estates.
2

(1) In general. In the case of a trust or estate, base
3

income means an amount equal to the taxpayer's taxable
4

income for the taxable year as modified by paragraph (2).
5

(2) Modifications. Subject to the provisions of
6

paragraph (3), the taxable income referred to in paragraph
7

(1) shall be modified by adding thereto the sum of the
8

following amounts:
9

(A) An amount equal to all amounts paid or accrued
10

to the taxpayer as interest or dividends during the
11

taxable year to the extent excluded from gross income
12

in the computation of taxable income;
13

(B) In the case of (i) an estate, $600; (ii) a
14

trust which, under its governing instrument, is
15

required to distribute all of its income currently,
16

$300; and (iii) any other trust, $100, but in each such
17

case, only to the extent such amount was deducted in
18

the computation of taxable income;
19

(C) An amount equal to the amount of tax imposed by
20

this Act to the extent deducted from gross income in
21

the computation of taxable income for the taxable
22

year;
23

(D) The amount of any net operating loss deduction
24

taken in arriving at taxable income, other than a net
25

operating loss carried forward from a taxable year

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ending prior to December 31, 1986;
2

(E) For taxable years in which a net operating
3

loss carryback or carryforward from a taxable year
4

ending prior to December 31, 1986 is an element of
5

taxable income under paragraph (1) of subsection (e)
6

or subparagraph (E) of paragraph (2) of subsection
7

(e), the amount by which addition modifications other
8

than those provided by this subparagraph (E) exceeded
9

subtraction modifications in such taxable year, with
10

the following limitations applied in the order that
11

they are listed:
12

(i) the addition modification relating to the
13

net operating loss carried back or forward to the
14

taxable year from any taxable year ending prior to
15

December 31, 1986 shall be reduced by the amount
16

of addition modification under this subparagraph
17

(E) which related to that net operating loss and
18

which was taken into account in calculating the
19

base income of an earlier taxable year, and
20

(ii) the addition modification relating to the
21

net operating loss carried back or forward to the
22

taxable year from any taxable year ending prior to
23

December 31, 1986 shall not exceed the amount of
24

such carryback or carryforward;
25

For taxable years in which there is a net
26

operating loss carryback or carryforward from more

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than one other taxable year ending prior to December
2

31, 1986, the addition modification provided in this
3

subparagraph (E) shall be the sum of the amounts
4

computed independently under the preceding provisions
5

of this subparagraph (E) for each such taxable year;
6

(F) For taxable years ending on or after January
7

1, 1989, an amount equal to the tax deducted pursuant
8

to Section 164 of the Internal Revenue Code if the
9

trust or estate is claiming the same tax for purposes
10

of the Illinois foreign tax credit under Section 601
11

of this Act;
12

(G) An amount equal to the amount of the capital
13

gain deduction allowable under the Internal Revenue
14

Code, to the extent deducted from gross income in the
15

computation of taxable income;
16

(G-5) For taxable years ending after December 31,
17

1997, an amount equal to any eligible remediation
18

costs that the trust or estate deducted in computing
19

adjusted gross income and for which the trust or
20

estate claims a credit under subsection (l) of Section
21

201;
22

(G-10) For taxable years 2001 and thereafter, an
23

amount equal to the bonus depreciation deduction taken
24

on the taxpayer's federal income tax return for the
25

taxable year under subsection (k) of Section 168 of
26

the Internal Revenue Code; and

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(G-11) If the taxpayer sells, transfers, abandons,
2

or otherwise disposes of property for which the
3

taxpayer was required in any taxable year to make an
4

addition modification under subparagraph (G-10), then
5

an amount equal to the aggregate amount of the
6

deductions taken in all taxable years under
7

subparagraph (R) with respect to that property.
8

If the taxpayer continues to own property through
9

the last day of the last tax year for which a
10

subtraction is allowed with respect to that property
11

under subparagraph (R) and for which the taxpayer was
12

allowed in any taxable year to make a subtraction
13

modification under subparagraph (R), then an amount
14

equal to that subtraction modification.
15

The taxpayer is required to make the addition
16

modification under this subparagraph only once with
17

respect to any one piece of property;
18

(G-12) An amount equal to the amount otherwise
19

allowed as a deduction in computing base income for
20

interest paid, accrued, or incurred, directly or
21

indirectly, (i) for taxable years ending on or after
22

December 31, 2004, to a foreign person who would be a
23

member of the same unitary business group but for the
24

fact that the foreign person's business activity
25

outside the United States is 80% or more of the foreign
26

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

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years ending on or after December 31, 2008, to a person
2

who would be a member of the same unitary business
3

group but for the fact that the person is prohibited
4

under Section 1501(a)(27) from being included in the
5

unitary business group because he or she is ordinarily
6

required to apportion business income under different
7

subsections of Section 304. The addition modification
8

required by this subparagraph shall be reduced to the
9

extent that dividends were included in base income of
10

the unitary group for the same taxable year and
11

received by the taxpayer or by a member of the
12

taxpayer's unitary business group (including amounts
13

included in gross income pursuant to Sections 951
14

through 964 of the Internal Revenue Code and amounts
15

included in gross income under Section 78 of the
16

Internal Revenue Code) with respect to the stock of
17

the same person to whom the interest was paid,
18

accrued, or incurred.
19

This paragraph shall not apply to the following:
20

(i) an item of interest paid, accrued, or
21

incurred, directly or indirectly, to a person who
22

is subject in a foreign country or state, other
23

than a state which requires mandatory unitary
24

reporting, to a tax on or measured by net income
25

with respect to such interest; or
26

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

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incurred, directly or indirectly, to a person if
2

the taxpayer can establish, based on a
3

preponderance of the evidence, both of the
4

following:
5

(a) the person, during the same taxable
6

year, paid, accrued, or incurred, the interest
7

to a person that is not a related member, and
8

(b) the transaction giving rise to the
9

interest expense between the taxpayer and the
10

person did not have as a principal purpose the
11

avoidance of Illinois income tax, and is paid
12

pursuant to a contract or agreement that
13

reflects an arm's-length interest rate and
14

terms; or
15

(iii) the taxpayer can establish, based on
16

clear and convincing evidence, that the interest
17

paid, accrued, or incurred relates to a contract
18

or agreement entered into at arm's-length rates
19

and terms and the principal purpose for the
20

payment is not federal or Illinois tax avoidance;
21

or
22

(iv) an item of interest paid, accrued, or
23

incurred, directly or indirectly, to a person if
24

the taxpayer establishes by clear and convincing
25

evidence that the adjustments are unreasonable; or
26

if the taxpayer and the Director agree in writing

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to the application or use of an alternative method
2

of apportionment under Section 304(f).
3

Nothing in this subsection shall preclude the
4

Director from making any other adjustment
5

otherwise allowed under Section 404 of this Act
6

for any tax year beginning after the effective
7

date of this amendment provided such adjustment is
8

made pursuant to regulation adopted by the
9

Department and such regulations provide methods
10

and standards by which the Department will utilize
11

its authority under Section 404 of this Act;
12

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

expenses and costs otherwise allowed as a deduction in
14

computing base income, and that were paid, accrued, or
15

incurred, directly or indirectly, (i) for taxable
16

years ending on or after December 31, 2004, to a
17

foreign person who would be a member of the same
18

unitary business group but for the fact that the
19

foreign person's business activity outside the United
20

States is 80% or more of that person's total business
21

activity and (ii) for taxable years ending on or after
22

December 31, 2008, to a person who would be a member of
23

the same unitary business group but for the fact that
24

the person is prohibited under Section 1501(a)(27)
25

from being included in the unitary business group
26

because he or she is ordinarily required to apportion

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business income under different subsections of Section
2

304. The addition modification required by this
3

subparagraph shall be reduced to the extent that
4

dividends were included in base income of the unitary
5

group for the same taxable year and received by the
6

taxpayer or by a member of the taxpayer's unitary
7

business group (including amounts included in gross
8

income pursuant to Sections 951 through 964 of the
9

Internal Revenue Code and amounts included in gross
10

income under Section 78 of the Internal Revenue Code)
11

with respect to the stock of the same person to whom
12

the intangible expenses and costs were directly or
13

indirectly paid, incurred, or accrued. The preceding
14

sentence shall not apply to the extent that the same
15

dividends caused a reduction to the addition
16

modification required under Section 203(c)(2)(G-12) of
17

this Act. As used in this subparagraph, the term
18

"intangible expenses and costs" includes: (1)
19

expenses, losses, and costs for or related to the
20

direct or indirect acquisition, use, maintenance or
21

management, ownership, sale, exchange, or any other
22

disposition of intangible property; (2) losses
23

incurred, directly or indirectly, from factoring
24

transactions or discounting transactions; (3) royalty,
25

patent, technical, and copyright fees; (4) licensing
26

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

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purposes of this subparagraph, "intangible property"
2

includes patents, patent applications, trade names,
3

trademarks, service marks, copyrights, mask works,
4

trade secrets, and similar types of intangible assets.
5

This paragraph shall not apply to the following:
6

(i) any item of intangible expenses or costs
7

paid, accrued, or incurred, directly or
8

indirectly, from a transaction with a person who
9

is subject in a foreign country or state, other
10

than a state which requires mandatory unitary
11

reporting, to a tax on or measured by net income
12

with respect to such item; or
13

(ii) any item of intangible expense or cost
14

paid, accrued, or incurred, directly or
15

indirectly, if the taxpayer can establish, based
16

on a preponderance of the evidence, both of the
17

following:
18

(a) the person during the same taxable
19

year paid, accrued, or incurred, the
20

intangible expense or cost to a person that is
21

not a related member, and
22

(b) the transaction giving rise to the
23

intangible expense or cost between the
24

taxpayer and the person did not have as a
25

principal purpose the avoidance of Illinois
26

income tax, and is paid pursuant to a contract

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or agreement that reflects arm's-length terms;
2

or
3

(iii) any item of intangible expense or cost
4

paid, accrued, or incurred, directly or
5

indirectly, from a transaction with a person if
6

the taxpayer establishes by clear and convincing
7

evidence, that the adjustments are unreasonable;
8

or if the taxpayer and the Director agree in
9

writing to the application or use of an
10

alternative method of apportionment under Section
11

304(f);
12

Nothing in this subsection shall preclude the
13

Director from making any other adjustment
14

otherwise allowed under Section 404 of this Act
15

for any tax year beginning after the effective
16

date of this amendment provided such adjustment is
17

made pursuant to regulation adopted by the
18

Department and such regulations provide methods
19

and standards by which the Department will utilize
20

its authority under Section 404 of this Act;
21

(G-14) For taxable years ending on or after
22

December 31, 2008, an amount equal to the amount of
23

insurance premium expenses and costs otherwise allowed
24

as a deduction in computing base income, and that were
25

paid, accrued, or incurred, directly or indirectly, 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. The
6

addition modification required by this subparagraph
7

shall be reduced to the extent that dividends were
8

included in base income of the unitary group for the
9

same taxable year and received by the taxpayer or by a
10

member of the taxpayer's unitary business group
11

(including amounts included in gross income under
12

Sections 951 through 964 of the Internal Revenue Code
13

and amounts included in gross income under Section 78
14

of the Internal Revenue Code) with respect to the
15

stock of the same person to whom the premiums and costs
16

were directly or indirectly paid, incurred, or
17

accrued. The preceding sentence does not apply to the
18

extent that the same dividends caused a reduction to
19

the addition modification required under Section
20

203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
21

Act;
22

(G-15) An amount equal to the credit allowable to
23

the taxpayer under Section 218(a) of this Act,
24

determined without regard to Section 218(c) of this
25

Act;
26

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

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December 31, 2017, an amount equal to the deduction
2

allowed under Section 199 of the Internal Revenue Code
3

for the taxable year;
4

(G-17) the amount that is claimed as a federal
5

deduction when computing the taxpayer's federal
6

taxable income for the taxable year and that is
7

attributable to an endowment gift for which the
8

taxpayer receives a credit under the Illinois Gives
9

Tax Credit Act;
10

and by deducting from the total so obtained the sum of the
11

following amounts:
12

(H) An amount equal to all amounts included in
13

such total pursuant to the provisions of Sections
14

402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
15

of the Internal Revenue Code or included in such total
16

as distributions under the provisions of any
17

retirement or disability plan for employees of any
18

governmental agency or unit, or retirement payments to
19

retired partners, which payments are excluded in
20

computing net earnings from self employment by Section
21

1402 of the Internal Revenue Code and regulations
22

adopted pursuant thereto;
23

(I) The valuation limitation amount;
24

(J) An amount equal to the amount of any tax
25

imposed by this Act which was refunded to the taxpayer
26

and included in such total for the taxable year;

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(K) An amount equal to all amounts included in
2

taxable income as modified by subparagraphs (A), (B),
3

(C), (D), (E), (F) and (G) which are exempt from
4

taxation by this State either by reason of its
5

statutes or Constitution or by reason of the
6

Constitution, treaties or statutes of the United
7

States; provided that, in the case of any statute of
8

this State that exempts income derived from bonds or
9

other obligations from the tax imposed under this Act,
10

the amount exempted shall be the interest net of bond
11

premium amortization;
12

(L) With the exception of any amounts subtracted
13

under subparagraph (K), an amount equal to the sum of
14

all amounts disallowed as deductions by (i) Sections
15

171(a)(2) and 265(a)(2) of the Internal Revenue Code,
16

and all amounts of expenses allocable to interest and
17

disallowed as deductions by Section 265(a)(1) of the
18

Internal Revenue Code; and (ii) for taxable years
19

ending on or after August 13, 1999, Sections
20

171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
21

Internal Revenue Code, plus, (iii) for taxable years
22

ending on or after December 31, 2011, Section
23

45G(e)(3) of the Internal Revenue Code and, for
24

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

any amount included in gross income under Section 87
26

of the Internal Revenue Code; the provisions of this

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1

subparagraph are exempt from the provisions of Section
2

250;
3

(M) An amount equal to those dividends included in
4

such total which were paid by a corporation which
5

conducts business operations in a River Edge
6

Redevelopment Zone or zones created under the River
7

Edge Redevelopment Zone Act and conducts substantially
8

all of its operations in a River Edge Redevelopment
9

Zone or zones. This subparagraph (M) is exempt from
10

the provisions of Section 250;
11

(N) An amount equal to any contribution made to a
12

job training project established pursuant to the Tax
13

Increment Allocation Redevelopment Act;
14

(O) An amount equal to those dividends included in
15

such total that were paid by a corporation that
16

conducts business operations in a federally designated
17

Foreign Trade Zone or Sub-Zone and that is designated
18

a High Impact Business located in Illinois; provided
19

that dividends eligible for the deduction provided in
20

subparagraph (M) of paragraph (2) of this subsection
21

shall not be eligible for the deduction provided under
22

this subparagraph (O);
23

(P) An amount equal to the amount of the deduction
24

used to compute the federal income tax credit for
25

restoration of substantial amounts held under claim of
26

right for the taxable year pursuant to Section 1341 of

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the Internal Revenue Code;
2

(Q) For taxable year 1999 and thereafter, an
3

amount equal to the amount of any (i) distributions,
4

to the extent includible in gross income for federal
5

income tax purposes, made to the taxpayer because of
6

his or her status as a victim of persecution for racial
7

or religious reasons by Nazi Germany or any other Axis
8

regime or as an heir of the victim and (ii) items of
9

income, to the extent includible in gross income for
10

federal income tax purposes, attributable to, derived
11

from or in any way related to assets stolen from,
12

hidden from, or otherwise lost to a victim of
13

persecution for racial or religious reasons by Nazi
14

Germany or any other Axis regime immediately prior to,
15

during, and immediately after World War II, including,
16

but not limited to, interest on the proceeds
17

receivable as insurance under policies issued to a
18

victim of persecution for racial or religious reasons
19

by Nazi Germany or any other Axis regime by European
20

insurance companies immediately prior to and during
21

World War II; provided, however, this subtraction from
22

federal adjusted gross income does not apply to assets
23

acquired with such assets or with the proceeds from
24

the sale of such assets; provided, further, this
25

paragraph shall only apply to a taxpayer who was the
26

first recipient of such assets after their recovery

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and who is a victim of persecution for racial or
2

religious reasons by Nazi Germany or any other Axis
3

regime or as an heir of the victim. The amount of and
4

the eligibility for any public assistance, benefit, or
5

similar entitlement is not affected by the inclusion
6

of items (i) and (ii) of this paragraph in gross income
7

for federal income tax purposes. This paragraph is
8

exempt from the provisions of Section 250;
9

(R) For taxable years 2001 and thereafter, for the
10

taxable year in which the bonus depreciation deduction
11

is taken on the taxpayer's federal income tax return
12

under subsection (k) of Section 168 of the Internal
13

Revenue Code and for each applicable taxable year
14

thereafter, an amount equal to "x", where:
15

(1) "y" equals the amount of the depreciation
16

deduction taken for the taxable year on the
17

taxpayer's federal income tax return on property
18

for which the bonus depreciation deduction was
19

taken in any year under subsection (k) of Section
20

168 of the Internal Revenue Code, but not
21

including the bonus depreciation deduction;
22

(2) for taxable years ending on or before
23

December 31, 2005, "x" equals "y" multiplied by 30
24

and then divided by 70 (or "y" multiplied by
25

0.429); and
26

(3) for taxable years ending after December

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1

31, 2005:
2

(i) for property on which a bonus
3

depreciation deduction of 30% of the adjusted
4

basis was taken, "x" equals "y" multiplied by
5

30 and then divided by 70 (or "y" multiplied
6

by 0.429);
7

(ii) for property on which a bonus
8

depreciation deduction of 50% of the adjusted
9

basis was taken, "x" equals "y" multiplied by
10

1.0;
11

(iii) for property on which a bonus
12

depreciation deduction of 100% of the adjusted
13

basis was taken in a taxable year ending on or
14

after December 31, 2021, "x" equals the
15

depreciation deduction that would be allowed
16

on that property if the taxpayer had made the
17

election under Section 168(k)(7) of the
18

Internal Revenue Code to not claim bonus
19

depreciation on that property; and
20

(iv) for property on which a bonus
21

depreciation deduction of a percentage other
22

than 30%, 50% or 100% of the adjusted basis
23

was taken in a taxable year ending on or after
24

December 31, 2021, "x" equals "y" multiplied
25

by 100 times the percentage bonus depreciation
26

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

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then divided by 100 times 1 minus the
2

percentage bonus depreciation on the property
3

(that is, 100(1-bonus%)).
4

The aggregate amount deducted under this
5

subparagraph in all taxable years for any one piece of
6

property may not exceed the amount of the bonus
7

depreciation deduction taken on that property on the
8

taxpayer's federal income tax return under subsection
9

(k) of Section 168 of the Internal Revenue Code. This
10

subparagraph (R) is exempt from the provisions of
11

Section 250;
12

(S) If the taxpayer sells, transfers, abandons, or
13

otherwise disposes of property for which the taxpayer
14

was required in any taxable year to make an addition
15

modification under subparagraph (G-10), then an amount
16

equal to that addition modification.
17

If the taxpayer continues to own property through
18

the last day of the last tax year for which a
19

subtraction is allowed with respect to that property
20

under subparagraph (R) and for which the taxpayer was
21

required in any taxable year to make an addition
22

modification under subparagraph (G-10), then an amount
23

equal to that addition modification.
24

The taxpayer is allowed to take the deduction
25

under this subparagraph only once with respect to any
26

one piece of property.

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This subparagraph (S) is exempt from the
2

provisions of Section 250;
3

(T) 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 such 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 such
18

addition modification. This subparagraph (T) is exempt
19

from the provisions of Section 250;
20

(U) 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 the foreign person's business activity
26

outside the United States is 80% or more of that

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

years ending on or after December 31, 2008, to a person
3

who would be a member of the same unitary business
4

group but for the fact that the person is prohibited
5

under Section 1501(a)(27) from being included in the
6

unitary business group because he or she is ordinarily
7

required to apportion business income under different
8

subsections of Section 304, but not to exceed the
9

addition modification required to be made for the same
10

taxable year under Section 203(c)(2)(G-12) for
11

interest paid, accrued, or incurred, directly or
12

indirectly, to the same person. This subparagraph (U)
13

is exempt from the provisions of Section 250;
14

(V) An amount equal to the income from intangible
15

property taken into account for the taxable year (net
16

of the deductions allocable thereto) with respect to
17

transactions with (i) a foreign person who would be a
18

member of the taxpayer's unitary business group but
19

for the fact that the foreign person's business
20

activity outside the United States is 80% or more of
21

that person's total business activity and (ii) for
22

taxable years ending on or after December 31, 2008, to
23

a person who would be a member of the same unitary
24

business group but for the fact that the person is
25

prohibited under Section 1501(a)(27) from being
26

included in the unitary business group because he or

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she is ordinarily required to apportion business
2

income under different subsections of Section 304, but
3

not to exceed the addition modification required to be
4

made for the same taxable year under Section
5

203(c)(2)(G-13) for intangible expenses and costs
6

paid, accrued, or incurred, directly or indirectly, to
7

the same foreign person. This subparagraph (V) is
8

exempt from the provisions of Section 250;
9

(W) in the case of an estate, an amount equal to
10

all amounts included in such total pursuant to the
11

provisions of Section 111 of the Internal Revenue Code
12

as a recovery of items previously deducted by the
13

decedent from adjusted gross income in the computation
14

of taxable income. This subparagraph (W) is exempt
15

from Section 250;
16

(X) an amount equal to the refund included in such
17

total of any tax deducted for federal income tax
18

purposes, to the extent that deduction was added back
19

under subparagraph (F). This subparagraph (X) is
20

exempt from the provisions of Section 250;
21

(Y) For taxable years ending on or after December
22

31, 2011, in the case of a taxpayer who was required to
23

add back any insurance premiums under Section
24

203(c)(2)(G-14), such taxpayer may elect to subtract
25

that part of a reimbursement received from the
26

insurance company equal to the amount of the expense

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or loss (including expenses incurred by the insurance
2

company) that would have been taken into account as a
3

deduction for federal income tax purposes if the
4

expense or loss had been uninsured. If a taxpayer
5

makes the election provided for by this subparagraph
6

(Y), the insurer to which the premiums were paid must
7

add back to income the amount subtracted by the
8

taxpayer pursuant to this subparagraph (Y). This
9

subparagraph (Y) is exempt from the provisions of
10

Section 250;
11

(Z) For taxable years beginning after December 31,
12

2018 and before January 1, 2026, the amount of excess
13

business loss of the taxpayer disallowed as a
14

deduction by Section 461(l)(1)(B) of the Internal
15

Revenue Code; and
16

(AA) For taxable years beginning on or after
17

January 1, 2023, for any cannabis establishment
18

operating in this State and licensed under the
19

Cannabis Regulation and Tax Act or any cannabis
20

cultivation center or medical cannabis dispensing
21

organization operating in this State and licensed
22

under the Compassionate Use of Medical Cannabis
23

Program Act, an amount equal to the deductions that
24

were disallowed under Section 280E of the Internal
25

Revenue Code for the taxable year and that would not be
26

added back under this subsection. The provisions of

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this subparagraph (AA) are exempt from the provisions
2

of Section 250.
3

(3) Limitation. The amount of any modification
4

otherwise required under this subsection shall, under
5

regulations prescribed by the Department, be adjusted by
6

any amounts included therein which were properly paid,
7

credited, or required to be distributed, or permanently
8

set aside for charitable purposes pursuant to Internal
9

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

10

(d) Partnerships.
11

(1) In general. In the case of a partnership, base
12

income means an amount equal to the taxpayer's taxable
13

income for the taxable year as modified by paragraph (2).
14

(2) Modifications. The taxable income referred to in
15

paragraph (1) shall be modified by adding thereto the sum
16

of the following amounts:
17

(A) An amount equal to all amounts paid or accrued
18

to the taxpayer as interest or dividends during the
19

taxable year to the extent excluded from gross income
20

in the computation of taxable income;
21

(B) An amount equal to the amount of tax imposed by
22

this Act to the extent deducted from gross income for
23

the taxable year;
24

(C) The amount of deductions allowed to the
25

partnership pursuant to Section 707 (c) of the

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1

Internal Revenue Code in calculating its taxable
2

income;
3

(D) An amount equal to the amount of the capital
4

gain deduction allowable under the Internal Revenue
5

Code, to the extent deducted from gross income in the
6

computation of taxable income;
7

(D-5) For taxable years 2001 and thereafter, an
8

amount equal to the bonus depreciation deduction taken
9

on the taxpayer's federal income tax return for the
10

taxable year under subsection (k) of Section 168 of
11

the Internal Revenue Code;
12

(D-6) If the taxpayer sells, transfers, abandons,
13

or otherwise disposes of property for which the
14

taxpayer was required in any taxable year to make an
15

addition modification under subparagraph (D-5), then
16

an amount equal to the aggregate amount of the
17

deductions taken in all taxable years under
18

subparagraph (O) with respect to that property.
19

If the taxpayer continues to own property through
20

the last day of the last tax year for which a
21

subtraction is allowed with respect to that property
22

under subparagraph (O) and for which the taxpayer was
23

allowed in any taxable year to make a subtraction
24

modification under subparagraph (O), then an amount
25

equal to that subtraction modification.
26

The taxpayer is required to make the addition

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1

modification under this subparagraph only once with
2

respect to any one piece of property;
3

(D-7) An amount equal to the amount otherwise
4

allowed as a deduction in computing base income for
5

interest paid, accrued, or incurred, directly or
6

indirectly, (i) for taxable years ending on or after
7

December 31, 2004, to a foreign person who would be a
8

member of the same unitary business group but for the
9

fact the foreign person's business activity outside
10

the United States is 80% or more of the foreign
11

person's total business activity and (ii) for taxable
12

years ending on or after December 31, 2008, to a person
13

who would be a member of the same unitary business
14

group but for the fact that the person is prohibited
15

under Section 1501(a)(27) from being included in the
16

unitary business group because he or she is ordinarily
17

required to apportion business income under different
18

subsections of Section 304. The addition modification
19

required by this subparagraph shall be reduced to the
20

extent that dividends were included in base income of
21

the unitary group for the same taxable year and
22

received by the taxpayer or by a member of the
23

taxpayer's unitary business group (including amounts
24

included in gross income pursuant to Sections 951
25

through 964 of the Internal Revenue Code and amounts
26

included in gross income under Section 78 of the

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1

Internal Revenue Code) with respect to the stock of
2

the same person to whom the interest was paid,
3

accrued, or incurred.
4

This paragraph shall not apply to the following:
5

(i) an item of interest paid, accrued, or
6

incurred, directly or indirectly, to a person who
7

is subject in a foreign country or state, other
8

than a state which requires mandatory unitary
9

reporting, to a tax on or measured by net income
10

with respect to such interest; or
11

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

incurred, directly or indirectly, to a person if
13

the taxpayer can establish, based on a
14

preponderance of the evidence, both of the
15

following:
16

(a) the person, during the same taxable
17

year, paid, accrued, or incurred, the interest
18

to a person that is not a related member, and
19

(b) the transaction giving rise to the
20

interest expense between the taxpayer and the
21

person did not have as a principal purpose the
22

avoidance of Illinois income tax, and is paid
23

pursuant to a contract or agreement that
24

reflects an arm's-length interest rate and
25

terms; or
26

(iii) the taxpayer can establish, based on

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clear and convincing evidence, that the interest
2

paid, accrued, or incurred relates to a contract
3

or agreement entered into at arm's-length rates
4

and terms and the principal purpose for the
5

payment is not federal or Illinois tax avoidance;
6

or
7

(iv) an item of interest paid, accrued, or
8

incurred, directly or indirectly, to a person if
9

the taxpayer establishes by clear and convincing
10

evidence that the adjustments are unreasonable; or
11

if the taxpayer and the Director agree in writing
12

to the application or use of an alternative method
13

of apportionment under Section 304(f).
14

Nothing in this subsection shall preclude the
15

Director from making any other adjustment
16

otherwise allowed under Section 404 of this Act
17

for any tax year beginning after the effective
18

date of this amendment provided such adjustment is
19

made pursuant to regulation adopted by the
20

Department and such regulations provide methods
21

and standards by which the Department will utilize
22

its authority under Section 404 of this Act; and
23

(D-8) An amount equal to the amount of intangible
24

expenses and costs otherwise allowed as a deduction in
25

computing base income, and that were paid, accrued, or
26

incurred, directly or indirectly, (i) for taxable

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1

years ending on or after December 31, 2004, to a
2

foreign person who would be a member of the same
3

unitary business group but for the fact that the
4

foreign person's business activity outside the United
5

States is 80% or more of that person's total business
6

activity and (ii) for taxable years ending on or after
7

December 31, 2008, to a person who would be a member of
8

the same unitary business group but for the fact that
9

the person is prohibited under Section 1501(a)(27)
10

from being included in the unitary business group
11

because he or she is ordinarily required to apportion
12

business income under different subsections of Section
13

304. The addition modification required by this
14

subparagraph shall be reduced to the extent that
15

dividends were included in base income of the unitary
16

group for the same taxable year and received by the
17

taxpayer or by a member of the taxpayer's unitary
18

business group (including amounts included in gross
19

income pursuant to Sections 951 through 964 of the
20

Internal Revenue Code and amounts included in gross
21

income under Section 78 of the Internal Revenue Code)
22

with respect to the stock of the same person to whom
23

the intangible expenses and costs were directly or
24

indirectly paid, incurred or accrued. The preceding
25

sentence shall not apply to the extent that the same
26

dividends caused a reduction to the addition

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1

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

this Act. As used in this subparagraph, the term
3

"intangible expenses and costs" includes (1) expenses,
4

losses, and costs for, or related to, the direct or
5

indirect acquisition, use, maintenance or management,
6

ownership, sale, exchange, or any other disposition of
7

intangible property; (2) losses incurred, directly or
8

indirectly, from factoring transactions or discounting
9

transactions; (3) royalty, patent, technical, and
10

copyright fees; (4) licensing fees; and (5) other
11

similar expenses and costs. For purposes of this
12

subparagraph, "intangible property" includes patents,
13

patent applications, trade names, trademarks, service
14

marks, copyrights, mask works, trade secrets, and
15

similar types of intangible assets;
16

This paragraph shall not apply to the following:
17

(i) any item of intangible expenses or costs
18

paid, accrued, or incurred, directly or
19

indirectly, from a transaction with a person who
20

is subject in a foreign country or state, other
21

than a state which requires mandatory unitary
22

reporting, to a tax on or measured by net income
23

with respect to such item; or
24

(ii) any item of intangible expense or cost
25

paid, accrued, or incurred, directly or
26

indirectly, if the taxpayer can establish, based

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1

on a preponderance of the evidence, both of the
2

following:
3

(a) the person during the same taxable
4

year paid, accrued, or incurred, the
5

intangible expense or cost to a person that is
6

not a related member, and
7

(b) the transaction giving rise to the
8

intangible expense or cost between the
9

taxpayer and the person did not have as a
10

principal purpose the avoidance of Illinois
11

income tax, and is paid pursuant to a contract
12

or agreement that reflects arm's-length terms;
13

or
14

(iii) any item of intangible expense or cost
15

paid, accrued, or incurred, directly or
16

indirectly, from a transaction with a person if
17

the taxpayer establishes by clear and convincing
18

evidence, that the adjustments are unreasonable;
19

or if the taxpayer and the Director agree in
20

writing to the application or use of an
21

alternative method of apportionment under Section
22

304(f);
23

Nothing in this subsection shall preclude the
24

Director from making any other adjustment
25

otherwise allowed under Section 404 of this Act
26

for any tax year beginning after the effective

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1

date of this amendment provided such adjustment is
2

made pursuant to regulation adopted by the
3

Department and such regulations provide methods
4

and standards by which the Department will utilize
5

its authority under Section 404 of this Act;
6

(D-9) For taxable years ending on or after
7

December 31, 2008, an amount equal to the amount of
8

insurance premium expenses and costs otherwise allowed
9

as a deduction in computing base income, and that were
10

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

a person who would be a member of the same unitary
12

business group but for the fact that the person is
13

prohibited under Section 1501(a)(27) from being
14

included in the unitary business group because he or
15

she is ordinarily required to apportion business
16

income under different subsections of Section 304. The
17

addition modification required by this subparagraph
18

shall be reduced to the extent that dividends were
19

included in base income of the unitary group for the
20

same taxable year and received by the taxpayer or by a
21

member of the taxpayer's unitary business group
22

(including amounts included in gross income under
23

Sections 951 through 964 of the Internal Revenue Code
24

and amounts included in gross income under Section 78
25

of the Internal Revenue Code) with respect to the
26

stock of the same person to whom the premiums and costs

SB1543
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1

were directly or indirectly paid, incurred, or
2

accrued. The preceding sentence does not apply to the
3

extent that the same dividends caused a reduction to
4

the addition modification required under Section
5

203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
6

(D-10) An amount equal to the credit allowable to
7

the taxpayer under Section 218(a) of this Act,
8

determined without regard to Section 218(c) of this
9

Act;
10

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

December 31, 2017, an amount equal to the deduction
12

allowed under Section 199 of the Internal Revenue Code
13

for the taxable year;
14

(D-12) the amount that is claimed as a federal
15

deduction when computing the taxpayer's federal
16

taxable income for the taxable year and that is
17

attributable to an endowment gift for which the
18

taxpayer receives a credit under the Illinois Gives
19

Tax Credit Act;
20

and by deducting from the total so obtained the following
21

amounts:
22

(E) The valuation limitation amount;
23

(F) An amount equal to the amount of any tax
24

imposed by this Act which was refunded to the taxpayer
25

and included in such total for the taxable year;
26

(G) An amount equal to all amounts included in

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1

taxable income as modified by subparagraphs (A), (B),
2

(C) and (D) which are exempt from taxation by this
3

State either by reason of its statutes or Constitution
4

or by reason of the Constitution, treaties or statutes
5

of the United States; provided that, in the case of any
6

statute of this State that exempts income derived from
7

bonds or other obligations from the tax imposed under
8

this Act, the amount exempted shall be the interest
9

net of bond premium amortization;
10

(H) Any income of the partnership which
11

constitutes personal service income as defined in
12

Section 1348(b)(1) of the Internal Revenue Code (as in
13

effect December 31, 1981) or a reasonable allowance
14

for compensation paid or accrued for services rendered
15

by partners to the partnership, whichever is greater;
16

this subparagraph (H) is exempt from the provisions of
17

Section 250;
18

(I) An amount equal to all amounts of income
19

distributable to an entity subject to the Personal
20

Property Tax Replacement Income Tax imposed by
21

subsections (c) and (d) of Section 201 of this Act
22

including amounts distributable to organizations
23

exempt from federal income tax by reason of Section
24

501(a) of the Internal Revenue Code; this subparagraph
25

(I) is exempt from the provisions of Section 250;
26

(J) With the exception of any amounts subtracted

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1

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

all amounts disallowed as deductions by (i) Sections
3

171(a)(2) and 265(a)(2) of the Internal Revenue Code,
4

and all amounts of expenses allocable to interest and
5

disallowed as deductions by Section 265(a)(1) of the
6

Internal Revenue Code; and (ii) for taxable years
7

ending on or after August 13, 1999, Sections
8

171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
9

Internal Revenue Code, plus, (iii) for taxable years
10

ending on or after December 31, 2011, Section
11

45G(e)(3) of the Internal Revenue Code and, for
12

taxable years ending on or after December 31, 2008,
13

any amount included in gross income under Section 87
14

of the Internal Revenue Code; the provisions of this
15

subparagraph are exempt from the provisions of Section
16

250;
17

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

such total which were paid by a corporation which
19

conducts business operations in a River Edge
20

Redevelopment Zone or zones created under the River
21

Edge Redevelopment Zone Act and conducts substantially
22

all of its operations from a River Edge Redevelopment
23

Zone or zones. This subparagraph (K) is exempt from
24

the provisions of Section 250;
25

(L) An amount equal to any contribution made to a
26

job training project established pursuant to the Real

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1

Property Tax Increment Allocation Redevelopment Act;
2

(M) An amount equal to those dividends included in
3

such total that were paid by a corporation that
4

conducts business operations in a federally designated
5

Foreign Trade Zone or Sub-Zone and that is designated
6

a High Impact Business located in Illinois; provided
7

that dividends eligible for the deduction provided in
8

subparagraph (K) of paragraph (2) of this subsection
9

shall not be eligible for the deduction provided under
10

this subparagraph (M);
11

(N) An amount equal to the amount of the deduction
12

used to compute the federal income tax credit for
13

restoration of substantial amounts held under claim of
14

right for the taxable year pursuant to Section 1341 of
15

the Internal Revenue Code;
16

(O) For taxable years 2001 and thereafter, for the
17

taxable year in which the bonus depreciation deduction
18

is taken on the taxpayer's federal income tax return
19

under subsection (k) of Section 168 of the Internal
20

Revenue Code and for each applicable taxable year
21

thereafter, an amount equal to "x", where:
22

(1) "y" equals the amount of the depreciation
23

deduction taken for the taxable year on the
24

taxpayer's federal income tax return on property
25

for which the bonus depreciation deduction was
26

taken in any year under subsection (k) of Section

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1

168 of the Internal Revenue Code, but not
2

including the bonus depreciation deduction;
3

(2) for taxable years ending on or before
4

December 31, 2005, "x" equals "y" multiplied by 30
5

and then divided by 70 (or "y" multiplied by
6

0.429); and
7

(3) for taxable years ending after December
8

31, 2005:
9

(i) for property on which a bonus
10

depreciation deduction of 30% of the adjusted
11

basis was taken, "x" equals "y" multiplied by
12

30 and then divided by 70 (or "y" multiplied
13

by 0.429);
14

(ii) for property on which a bonus
15

depreciation deduction of 50% of the adjusted
16

basis was taken, "x" equals "y" multiplied by
17

1.0;
18

(iii) for property on which a bonus
19

depreciation deduction of 100% of the adjusted
20

basis was taken in a taxable year ending on or
21

after December 31, 2021, "x" equals the
22

depreciation deduction that would be allowed
23

on that property if the taxpayer had made the
24

election under Section 168(k)(7) of the
25

Internal Revenue Code to not claim bonus
26

depreciation on that property; and

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(iv) for property on which a bonus
2

depreciation deduction of a percentage other
3

than 30%, 50% or 100% of the adjusted basis
4

was taken in a taxable year ending on or after
5

December 31, 2021, "x" equals "y" multiplied
6

by 100 times the percentage bonus depreciation
7

on the property (that is, 100(bonus%)) and
8

then divided by 100 times 1 minus the
9

percentage bonus depreciation on the property
10

(that is, 100(1-bonus%)).
11

The aggregate amount deducted under this
12

subparagraph in all taxable years for any one piece of
13

property may not exceed the amount of the bonus
14

depreciation deduction taken on that property on the
15

taxpayer's federal income tax return under subsection
16

(k) of Section 168 of the Internal Revenue Code. This
17

subparagraph (O) is exempt from the provisions of
18

Section 250;
19

(P) If the taxpayer sells, transfers, abandons, or
20

otherwise disposes of property for which the taxpayer
21

was required in any taxable year to make an addition
22

modification under subparagraph (D-5), then an amount
23

equal to that addition modification.
24

If the taxpayer continues to own property through
25

the last day of the last tax year for which a
26

subtraction is allowed with respect to that property

SB1543
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under subparagraph (O) and for which the taxpayer was
2

required in any taxable year to make an addition
3

modification under subparagraph (D-5), then an amount
4

equal to that addition modification.
5

The taxpayer is allowed to take the deduction
6

under this subparagraph only once with respect to any
7

one piece of property.
8

This subparagraph (P) is exempt from the
9

provisions of Section 250;
10

(Q) The amount of (i) any interest income (net of
11

the deductions allocable thereto) taken into account
12

for the taxable year with respect to a transaction
13

with a taxpayer that is required to make an addition
14

modification with respect to such transaction under
15

Section 203(a)(2)(D-17), 203(b)(2)(E-12),
16

203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
17

the amount of such addition modification and (ii) any
18

income from intangible property (net of the deductions
19

allocable thereto) taken into account for the taxable
20

year with respect to a transaction with a taxpayer
21

that is required to make an addition modification with
22

respect to such transaction under Section
23

203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
24

203(d)(2)(D-8), but not to exceed the amount of such
25

addition modification. This subparagraph (Q) is exempt
26

from Section 250;

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(R) An amount equal to the interest income taken
2

into account for the taxable year (net of the
3

deductions allocable thereto) with respect to
4

transactions with (i) a foreign person who would be a
5

member of the taxpayer's unitary business group but
6

for the fact that the foreign person's business
7

activity outside the United States is 80% or more of
8

that person's total business activity and (ii) for
9

taxable years ending on or after December 31, 2008, to
10

a person who would be a member of the same unitary
11

business group but for the fact that the person is
12

prohibited under Section 1501(a)(27) from being
13

included in the unitary business group because he or
14

she is ordinarily required to apportion business
15

income under different subsections of Section 304, but
16

not to exceed the addition modification required to be
17

made for the same taxable year under Section
18

203(d)(2)(D-7) for interest paid, accrued, or
19

incurred, directly or indirectly, to the same person.
20

This subparagraph (R) is exempt from Section 250;
21

(S) An amount equal to the income from intangible
22

property taken into account for the taxable year (net
23

of the deductions allocable thereto) with respect to
24

transactions with (i) a foreign person who would be a
25

member of the taxpayer's unitary business group but
26

for the fact that the foreign person's business

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1

activity outside the United States is 80% or more of
2

that person's total business activity and (ii) for
3

taxable years ending on or after December 31, 2008, 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, but
10

not to exceed the addition modification required to be
11

made for the same taxable year under Section
12

203(d)(2)(D-8) for intangible expenses and costs paid,
13

accrued, or incurred, directly or indirectly, to the
14

same person. This subparagraph (S) is exempt from
15

Section 250;
16

(T) 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(d)(2)(D-9), 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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(T), 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 (T). This
4

subparagraph (T) is exempt from the provisions of
5

Section 250; and
6

(U) For taxable years beginning on or after
7

January 1, 2023, for any cannabis establishment
8

operating in this State and licensed under the
9

Cannabis Regulation and Tax Act or any cannabis
10

cultivation center or medical cannabis dispensing
11

organization operating in this State and licensed
12

under the Compassionate Use of Medical Cannabis
13

Program Act, an amount equal to the deductions that
14

were disallowed under Section 280E of the Internal
15

Revenue Code for the taxable year and that would not be
16

added back under this subsection. The provisions of
17

this subparagraph (U) are exempt from the provisions
18

of Section 250.

19

(e) Gross income; adjusted gross income; taxable income.
20

(1) In general. Subject to the provisions of paragraph
21

(2) and subsection (b)(3), for purposes of this Section
22

and Section 803(e), a taxpayer's gross income, adjusted
23

gross income, or taxable income for the taxable year shall
24

mean the amount of gross income, adjusted gross income or
25

taxable income properly reportable for federal income tax

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1

purposes for the taxable year under the provisions of the
2

Internal Revenue Code. Taxable income may be less than
3

zero. However, for taxable years ending on or after
4

December 31, 1986, net operating loss carryforwards from
5

taxable years ending prior to December 31, 1986, may not
6

exceed the sum of federal taxable income for the taxable
7

year before net operating loss deduction, plus the excess
8

of addition modifications over subtraction modifications
9

for the taxable year. For taxable years ending prior to
10

December 31, 1986, taxable income may never be an amount
11

in excess of the net operating loss for the taxable year as
12

defined in subsections (c) and (d) of Section 172 of the
13

Internal Revenue Code, provided that when taxable income
14

of a corporation (other than a Subchapter S corporation),
15

trust, or estate is less than zero and addition
16

modifications, other than those provided by subparagraph
17

(E) of paragraph (2) of subsection (b) for corporations or
18

subparagraph (E) of paragraph (2) of subsection (c) for
19

trusts and estates, exceed subtraction modifications, an
20

addition modification must be made under those
21

subparagraphs for any other taxable year to which the
22

taxable income less than zero (net operating loss) is
23

applied under Section 172 of the Internal Revenue Code or
24

under subparagraph (E) of paragraph (2) of this subsection
25

(e) applied in conjunction with Section 172 of the
26

Internal Revenue Code.

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1

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

this subsection, the taxable income properly reportable
3

for federal income tax purposes shall mean:
4

(A) Certain life insurance companies. In the case
5

of a life insurance company subject to the tax imposed
6

by Section 801 of the Internal Revenue Code, life
7

insurance company taxable income, plus the amount of
8

distribution from pre-1984 policyholder surplus
9

accounts as calculated under Section 815a of the
10

Internal Revenue Code;
11

(B) Certain other insurance companies. In the case
12

of mutual insurance companies subject to the tax
13

imposed by Section 831 of the Internal Revenue Code,
14

insurance company taxable income;
15

(C) Regulated investment companies. In the case of
16

a regulated investment company subject to the tax
17

imposed by Section 852 of the Internal Revenue Code,
18

investment company taxable income;
19

(D) Real estate investment trusts. In the case of
20

a real estate investment trust subject to the tax
21

imposed by Section 857 of the Internal Revenue Code,
22

real estate investment trust taxable income;
23

(E) Consolidated corporations. In the case of a
24

corporation which is a member of an affiliated group
25

of corporations filing a consolidated income tax
26

return for the taxable year for federal income tax

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1

purposes, taxable income determined as if such
2

corporation had filed a separate return for federal
3

income tax purposes for the taxable year and each
4

preceding taxable year for which it was a member of an
5

affiliated group. For purposes of this subparagraph,
6

the taxpayer's separate taxable income shall be
7

determined as if the election provided by Section
8

243(b)(2) of the Internal Revenue Code had been in
9

effect for all such years;
10

(F) Cooperatives. In the case of a cooperative
11

corporation or association, the taxable income of such
12

organization determined in accordance with the
13

provisions of Section 1381 through 1388 of the
14

Internal Revenue Code, but without regard to the
15

prohibition against offsetting losses from patronage
16

activities against income from nonpatronage
17

activities; except that a cooperative corporation or
18

association may make an election to follow its federal
19

income tax treatment of patronage losses and
20

nonpatronage losses. In the event such election is
21

made, such losses shall be computed and carried over
22

in a manner consistent with subsection (a) of Section
23

207 of this Act and apportioned by the apportionment
24

factor reported by the cooperative on its Illinois
25

income tax return filed for the taxable year in which
26

the losses are incurred. The election shall be

SB1543
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1

effective for all taxable years with original returns
2

due on or after the date of the election. In addition,
3

the cooperative may file an amended return or returns,
4

as allowed under this Act, to provide that the
5

election shall be effective for losses incurred or
6

carried forward for taxable years occurring prior to
7

the date of the election. Once made, the election may
8

only be revoked upon approval of the Director. The
9

Department shall adopt rules setting forth
10

requirements for documenting the elections and any
11

resulting Illinois net loss and the standards to be
12

used by the Director in evaluating requests to revoke
13

elections. Public Act 96-932 is declaratory of
14

existing law;
15

(G) Subchapter S corporations. In the case of: (i)
16

a Subchapter S corporation for which there is in
17

effect an election for the taxable year under Section
18

1362 of the Internal Revenue Code, the taxable income
19

of such corporation determined in accordance with
20

Section 1363(b) of the Internal Revenue Code, except
21

that taxable income shall take into account those
22

items which are required by Section 1363(b)(1) of the
23

Internal Revenue Code to be separately stated; and
24

(ii) a Subchapter S corporation for which there is in
25

effect a federal election to opt out of the provisions
26

of the Subchapter S Revision Act of 1982 and have

SB1543
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1

applied instead the prior federal Subchapter S rules
2

as in effect on July 1, 1982, the taxable income of
3

such corporation determined in accordance with the
4

federal Subchapter S rules as in effect on July 1,
5

1982; and
6

(H) Partnerships. In the case of a partnership,
7

taxable income determined in accordance with Section
8

703 of the Internal Revenue Code, except that taxable
9

income shall take into account those items which are
10

required by Section 703(a)(1) to be separately stated
11

but which would be taken into account by an individual
12

in calculating his taxable income.
13

(3) Recapture of business expenses on disposition of
14

asset or business. Notwithstanding any other law to the
15

contrary, if in prior years income from an asset or
16

business has been classified as business income and in a
17

later year is demonstrated to be non-business income, then
18

all expenses, without limitation, deducted in such later
19

year and in the 2 immediately preceding taxable years
20

related to that asset or business that generated the
21

non-business income shall be added back and recaptured as
22

business income in the year of the disposition of the
23

asset or business. Such amount shall be apportioned to
24

Illinois using the greater of the apportionment fraction
25

computed for the business under Section 304 of this Act
26

for the taxable year or the average of the apportionment

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1

fractions computed for the business under Section 304 of
2

this Act for the taxable year and for the 2 immediately
3

preceding taxable years.

4

(f) Valuation limitation amount.
5

(1) In general. The valuation limitation amount
6

referred to in subsections (a)(2)(G), (c)(2)(I) and
7

(d)(2)(E) is an amount equal to:
8

(A) The sum of the pre-August 1, 1969 appreciation
9

amounts (to the extent consisting of gain reportable
10

under the provisions of Section 1245 or 1250 of the
11

Internal Revenue Code) for all property in respect of
12

which such gain was reported for the taxable year;
13

plus
14

(B) The lesser of (i) the sum of the pre-August 1,
15

1969 appreciation amounts (to the extent consisting of
16

capital gain) for all property in respect of which
17

such gain was reported for federal income tax purposes
18

for the taxable year, or (ii) the net capital gain for
19

the taxable year, reduced in either case by any amount
20

of such gain included in the amount determined under
21

subsection (a)(2)(F) or (c)(2)(H).
22

(2) Pre-August 1, 1969 appreciation amount.
23

(A) If the fair market value of property referred
24

to in paragraph (1) was readily ascertainable on
25

August 1, 1969, the pre-August 1, 1969 appreciation

SB1543
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1

amount for such property is the lesser of (i) the
2

excess of such fair market value over the taxpayer's
3

basis (for determining gain) for such property on that
4

date (determined under the Internal Revenue Code as in
5

effect on that date), or (ii) the total gain realized
6

and reportable for federal income tax purposes in
7

respect of the sale, exchange or other disposition of
8

such property.
9

(B) If the fair market value of property referred
10

to in paragraph (1) was not readily ascertainable on
11

August 1, 1969, the pre-August 1, 1969 appreciation
12

amount for such property is that amount which bears
13

the same ratio to the total gain reported in respect of
14

the property for federal income tax purposes for the
15

taxable year, as the number of full calendar months in
16

that part of the taxpayer's holding period for the
17

property ending July 31, 1969 bears to the number of
18

full calendar months in the taxpayer's entire holding
19

period for the property.
20

(C) The Department shall prescribe such
21

regulations as may be necessary to carry out the
22

purposes of this paragraph.

23

(g) Double deductions. Unless specifically provided
24
otherwise, nothing in this Section shall permit the same item
25
to be deducted more than once.

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1

(h) Legislative intention. Except as expressly provided by
2
this Section there shall be no modifications or limitations on
3
the amounts of income, gain, loss or deduction taken into
4
account in determining gross income, adjusted gross income or
5
taxable income for federal income tax purposes for the taxable
6
year, or in the amount of such items entering into the
7
computation of base income and net income under this Act for
8
such taxable year, whether in respect of property values as of
9
August 1, 1969 or otherwise.
10
(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
11
102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff.
12
12-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; 103-592,
13
Article 10, Section 10-900, eff. 6-7-24; 103-592, Article 170,
14
Section 170-90, eff. 6-7-24; 103-605, eff. 7-1-24; 103-647,
15
eff. 7-1-24; revised 8-20-24.)

16

Section 99.
Effective date.
This Act takes effect upon
17
becoming law.

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