Rep. Jeanne M Ives
Filed: 5/26/2017
 
 


 




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1
AMENDMENT TO SENATE BILL 9 




2 AMENDMENT NO. ______. Amend Senate Bill 9 by replacing 
3everything after the enacting clause with the following:


4 "Section 5. The Illinois Income Tax Act is amended by 
5changing Sections 201 and 222 and by adding Section 225 as 
6follows:

7 (35 ILCS 5/201) (from Ch. 120, par. 2-201)
8 Sec. 201. Tax Imposed. 
9 (a) In general. A tax measured by net income is hereby 
10imposed on every
individual, corporation, trust and estate for 
11each taxable year ending
after July 31, 1969 on the privilege 
12of earning or receiving income in or
as a resident of this 
13State. Such tax shall be in addition to all other
occupation or 
14privilege taxes imposed by this State or by any municipal

15corporation or political subdivision thereof.
16 (b) Rates. The tax imposed by subsection (a) of this 
 
 
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1Section shall be
determined as follows, except as adjusted by 
2subsection (d-1):
3  (1) In the case of an individual, trust or estate, for 
4 taxable years
ending prior to July 1, 1989, an amount equal 
5 to 2 1/2% of the taxpayer's
net income for the taxable 
6 year.
7  (2) In the case of an individual, trust or estate, for 
8 taxable years
beginning prior to July 1, 1989 and ending 
9 after June 30, 1989, an amount
equal to the sum of (i) 2 
10 1/2% of the taxpayer's net income for the period
prior to 
11 July 1, 1989, as calculated under Section 202.3, and (ii) 
12 3% of the
taxpayer's net income for the period after June 
13 30, 1989, as calculated
under Section 202.3.
14  (3) In the case of an individual, trust or estate, for 
15 taxable years
beginning after June 30, 1989, and ending 
16 prior to January 1, 2011, an amount equal to 3% of the 
17 taxpayer's net
income for the taxable year.
18  (4) In the case of an individual, trust, or estate, for 
19 taxable years beginning prior to January 1, 2011, and 
20 ending after December 31, 2010, an amount equal to the sum 
21 of (i) 3% of the taxpayer's net income for the period prior 
22 to January 1, 2011, as calculated under Section 202.5, and 
23 (ii) 5% of the taxpayer's net income for the period after 
24 December 31, 2010, as calculated under Section 202.5.
25  (5) In the case of an individual, trust, or estate, for 
26 taxable years beginning on or after January 1, 2011, and 
 
 
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1 ending prior to January 1, 2015, an amount equal to 5% of 
2 the taxpayer's net income for the taxable year.
3  (5.1) In the case of an individual, trust, or estate, 
4 for taxable years beginning prior to January 1, 2015, and 
5 ending after December 31, 2014, an amount equal to the sum 
6 of (i) 5% of the taxpayer's net income for the period prior 
7 to January 1, 2015, as calculated under Section 202.5, and 
8 (ii) 3.75% of the taxpayer's net income for the period 
9 after December 31, 2014, as calculated under Section 202.5. 
10  (5.2) In the case of an individual, trust, or estate, 
11 for taxable years beginning on or after January 1, 2015, 
12 and ending prior to January 1, 2025, an amount equal to 
13 3.75% of the taxpayer's net income for the taxable year. 
14  (5.3) In the case of an individual, trust, or estate, 
15 for taxable years beginning prior to January 1, 2025, and 
16 ending after December 31, 2024, an amount equal to the sum 
17 of (i) 3.75% of the taxpayer's net income for the period 
18 prior to January 1, 2025, as calculated under Section 
19 202.5, and (ii) 3.25% of the taxpayer's net income for the 
20 period after December 31, 2024, as calculated under Section 
21 202.5. 
22  (5.4) In the case of an individual, trust, or estate, 
23 for taxable years beginning on or after January 1, 2025, an 
24 amount equal to 3.25% of the taxpayer's net income for the 
25 taxable year. 
26  (6) In the case of a corporation, for taxable years

 
 
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1 ending prior to July 1, 1989, an amount equal to 4% of the

2 taxpayer's net income for the taxable year.
3  (7) In the case of a corporation, for taxable years 
4 beginning prior to
July 1, 1989 and ending after June 30, 
5 1989, an amount equal to the sum of
(i) 4% of the 
6 taxpayer's net income for the period prior to July 1, 1989,

7 as calculated under Section 202.3, and (ii) 4.8% of the 
8 taxpayer's net
income for the period after June 30, 1989, 
9 as calculated under Section
202.3.
10  (8) In the case of a corporation, for taxable years 
11 beginning after
June 30, 1989, and ending prior to January 
12 1, 2011, an amount equal to 4.8% of the taxpayer's net 
13 income for the
taxable year.
14  (9) In the case of a corporation, for taxable years 
15 beginning prior to January 1, 2011, and ending after 
16 December 31, 2010, an amount equal to the sum of (i) 4.8% 
17 of the taxpayer's net income for the period prior to 
18 January 1, 2011, as calculated under Section 202.5, and 
19 (ii) 7% of the taxpayer's net income for the period after 
20 December 31, 2010, as calculated under Section 202.5. 
21  (10) In the case of a corporation, for taxable years 
22 beginning on or after January 1, 2011, and ending prior to 
23 January 1, 2015, an amount equal to 7% of the taxpayer's 
24 net income for the taxable year. 
25  (11) In the case of a corporation, for taxable years 
26 beginning prior to January 1, 2015, and ending after 
 
 
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1 December 31, 2014, an amount equal to the sum of (i) 7% of 
2 the taxpayer's net income for the period prior to January 
3 1, 2015, as calculated under Section 202.5, and (ii) 5.25% 
4 of the taxpayer's net income for the period after December 
5 31, 2014, as calculated under Section 202.5. 
6  (12) In the case of a corporation, for taxable years 
7 beginning on or after January 1, 2015, and ending prior to 
8 January 1, 2025, an amount equal to 5.25% of the taxpayer's 
9 net income for the taxable year. 
10  (13) In the case of a corporation, for taxable years 
11 beginning prior to January 1, 2025, and ending after 
12 December 31, 2024, an amount equal to the sum of (i) 5.25% 
13 of the taxpayer's net income for the period prior to 
14 January 1, 2025, as calculated under Section 202.5, and 
15 (ii) 4.8% of the taxpayer's net income for the period after 
16 December 31, 2024, as calculated under Section 202.5. 
17  (14) In the case of a corporation, for taxable years 
18 beginning on or after January 1, 2025, an amount equal to 
19 4.8% of the taxpayer's net income for the taxable year. 
20 The rates under this subsection (b) are subject to the 
21provisions of Section 201.5. 
22 (c) Personal Property Tax Replacement Income Tax.

23Beginning on July 1, 1979 and thereafter, in addition to such 
24income
tax, there is also hereby imposed the Personal Property 
25Tax Replacement
Income Tax measured by net income on every 
26corporation (including Subchapter
S corporations), partnership 
 
 
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1and trust, for each taxable year ending after
June 30, 1979. 
2Such taxes are imposed on the privilege of earning or
receiving 
3income in or as a resident of this State. The Personal Property

4Tax Replacement Income Tax shall be in addition to the income 
5tax imposed
by subsections (a) and (b) of this Section and in 
6addition to all other
occupation or privilege taxes imposed by 
7this State or by any municipal
corporation or political 
8subdivision thereof.
9 (d) Additional Personal Property Tax Replacement Income 
10Tax Rates.
The personal property tax replacement income tax 
11imposed by this subsection
and subsection (c) of this Section 
12in the case of a corporation, other
than a Subchapter S 
13corporation and except as adjusted by subsection (d-1),
shall 
14be an additional amount equal to
2.85% of such taxpayer's net 
15income for the taxable year, except that
beginning on January 
161, 1981, and thereafter, the rate of 2.85% specified
in this 
17subsection shall be reduced to 2.5%, and in the case of a

18partnership, trust or a Subchapter S corporation shall be an 
19additional
amount equal to 1.5% of such taxpayer's net income 
20for the taxable year.
21 (d-1) Rate reduction for certain foreign insurers. In the 
22case of a
foreign insurer, as defined by Section 35A-5 of the 
23Illinois Insurance Code,
whose state or country of domicile 
24imposes on insurers domiciled in Illinois
a retaliatory tax 
25(excluding any insurer
whose premiums from reinsurance assumed 
26are 50% or more of its total insurance
premiums as determined 
 
 
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1under paragraph (2) of subsection (b) of Section 304,
except 
2that for purposes of this determination premiums from 
3reinsurance do
not include premiums from inter-affiliate 
4reinsurance arrangements),
beginning with taxable years ending 
5on or after December 31, 1999,
the sum of
the rates of tax 
6imposed by subsections (b) and (d) shall be reduced (but not

7increased) to the rate at which the total amount of tax imposed 
8under this Act,
net of all credits allowed under this Act, 
9shall equal (i) the total amount of
tax that would be imposed 
10on the foreign insurer's net income allocable to
Illinois for 
11the taxable year by such foreign insurer's state or country of

12domicile if that net income were subject to all income taxes 
13and taxes
measured by net income imposed by such foreign 
14insurer's state or country of
domicile, net of all credits 
15allowed or (ii) a rate of zero if no such tax is
imposed on such 
16income by the foreign insurer's state of domicile.
For the 
17purposes of this subsection (d-1), an inter-affiliate includes 
18a
mutual insurer under common management.
19  (1) For the purposes of subsection (d-1), in no event 
20 shall the sum of the
rates of tax imposed by subsections 
21 (b) and (d) be reduced below the rate at
which the sum of:
22   (A) the total amount of tax imposed on such foreign 
23 insurer under
this Act for a taxable year, net of all 
24 credits allowed under this Act, plus
25   (B) the privilege tax imposed by Section 409 of the 
26 Illinois Insurance
Code, the fire insurance company 
 
 
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1 tax imposed by Section 12 of the Fire
Investigation 
2 Act, and the fire department taxes imposed under 
3 Section 11-10-1
of the Illinois Municipal Code,
4 equals 1.25% for taxable years ending prior to December 31, 
5 2003, or
1.75% for taxable years ending on or after 
6 December 31, 2003, of the net
taxable premiums written for 
7 the taxable year,
as described by subsection (1) of Section 
8 409 of the Illinois Insurance Code.
This paragraph will in 
9 no event increase the rates imposed under subsections
(b) 
10 and (d).
11  (2) Any reduction in the rates of tax imposed by this 
12 subsection shall be
applied first against the rates imposed 
13 by subsection (b) and only after the
tax imposed by 
14 subsection (a) net of all credits allowed under this 
15 Section
other than the credit allowed under subsection (i) 
16 has been reduced to zero,
against the rates imposed by 
17 subsection (d).
18 This subsection (d-1) is exempt from the provisions of 
19Section 250.
20 (e) Investment credit. A taxpayer shall be allowed a credit

21against the Personal Property Tax Replacement Income Tax for

22investment in qualified property.
23  (1) A taxpayer shall be allowed a credit equal to .5% 
24 of
the basis of qualified property placed in service during 
25 the taxable year,
provided such property is placed in 
26 service on or after
July 1, 1984. There shall be allowed an 
 
 
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1 additional credit equal
to .5% of the basis of qualified 
2 property placed in service during the
taxable year, 
3 provided such property is placed in service on or
after 
4 July 1, 1986, and the taxpayer's base employment
within 
5 Illinois has increased by 1% or more over the preceding 
6 year as
determined by the taxpayer's employment records 
7 filed with the
Illinois Department of Employment Security. 
8 Taxpayers who are new to
Illinois shall be deemed to have 
9 met the 1% growth in base employment for
the first year in 
10 which they file employment records with the Illinois

11 Department of Employment Security. The provisions added to 
12 this Section by
Public Act 85-1200 (and restored by Public 
13 Act 87-895) shall be
construed as declaratory of existing 
14 law and not as a new enactment. If,
in any year, the 
15 increase in base employment within Illinois over the

16 preceding year is less than 1%, the additional credit shall 
17 be limited to that
percentage times a fraction, the 
18 numerator of which is .5% and the denominator
of which is 
19 1%, but shall not exceed .5%. The investment credit shall 
20 not be
allowed to the extent that it would reduce a 
21 taxpayer's liability in any tax
year below zero, nor may 
22 any credit for qualified property be allowed for any
year 
23 other than the year in which the property was placed in 
24 service in
Illinois. For tax years ending on or after 
25 December 31, 1987, and on or
before December 31, 1988, the 
26 credit shall be allowed for the tax year in
which the 
 
 
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1 property is placed in service, or, if the amount of the 
2 credit
exceeds the tax liability for that year, whether it 
3 exceeds the original
liability or the liability as later 
4 amended, such excess may be carried
forward and applied to 
5 the tax liability of the 5 taxable years following
the 
6 excess credit years if the taxpayer (i) makes investments 
7 which cause
the creation of a minimum of 2,000 full-time 
8 equivalent jobs in Illinois,
(ii) is located in an 
9 enterprise zone established pursuant to the Illinois

10 Enterprise Zone Act and (iii) is certified by the 
11 Department of Commerce
and Community Affairs (now 
12 Department of Commerce and Economic Opportunity) as 
13 complying with the requirements specified in
clause (i) and 
14 (ii) by July 1, 1986. The Department of Commerce and

15 Community Affairs (now Department of Commerce and Economic 
16 Opportunity) shall notify the Department of Revenue of all 
17 such
certifications immediately. For tax years ending 
18 after December 31, 1988,
the credit shall be allowed for 
19 the tax year in which the property is
placed in service, 
20 or, if the amount of the credit exceeds the tax
liability 
21 for that year, whether it exceeds the original liability or 
22 the
liability as later amended, such excess may be carried 
23 forward and applied
to the tax liability of the 5 taxable 
24 years following the excess credit
years. The credit shall 
25 be applied to the earliest year for which there is
a 
26 liability. If there is credit from more than one tax year 
 
 
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1 that is
available to offset a liability, earlier credit 
2 shall be applied first.
3  (2) The term "qualified property" means property 
4 which:
5   (A) is tangible, whether new or used, including 
6 buildings and structural
components of buildings and 
7 signs that are real property, but not including
land or 
8 improvements to real property that are not a structural 
9 component of a
building such as landscaping, sewer 
10 lines, local access roads, fencing, parking
lots, and 
11 other appurtenances;
12   (B) is depreciable pursuant to Section 167 of the 
13 Internal Revenue Code,
except that "3-year property" 
14 as defined in Section 168(c)(2)(A) of that
Code is not 
15 eligible for the credit provided by this subsection 
16 (e);
17   (C) is acquired by purchase as defined in Section 
18 179(d) of
the Internal Revenue Code;
19   (D) is used in Illinois by a taxpayer who is 
20 primarily engaged in
manufacturing, or in mining coal 
21 or fluorite, or in retailing, or was placed in service 
22 on or after July 1, 2006 in a River Edge Redevelopment 
23 Zone established pursuant to the River Edge 
24 Redevelopment Zone Act; and
25   (E) has not previously been used in Illinois in 
26 such a manner and by
such a person as would qualify for 
 
 
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1 the credit provided by this subsection
(e) or 
2 subsection (f).
3  (3) For purposes of this subsection (e), 
4 "manufacturing" means
the material staging and production 
5 of tangible personal property by
procedures commonly 
6 regarded as manufacturing, processing, fabrication, or

7 assembling which changes some existing material into new 
8 shapes, new
qualities, or new combinations. For purposes of 
9 this subsection
(e) the term "mining" shall have the same 
10 meaning as the term "mining" in
Section 613(c) of the 
11 Internal Revenue Code. For purposes of this subsection
(e), 
12 the term "retailing" means the sale of tangible personal 
13 property for use or consumption and not for resale, or

14 services rendered in conjunction with the sale of tangible 
15 personal property for use or consumption and not for 
16 resale. For purposes of this subsection (e), "tangible 
17 personal property" has the same meaning as when that term 
18 is used in the Retailers' Occupation Tax Act, and, for 
19 taxable years ending after December 31, 2008, does not 
20 include the generation, transmission, or distribution of 
21 electricity.
22  (4) The basis of qualified property shall be the basis

23 used to compute the depreciation deduction for federal 
24 income tax purposes.
25  (5) If the basis of the property for federal income tax 
26 depreciation
purposes is increased after it has been placed 
 
 
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1 in service in Illinois by
the taxpayer, the amount of such 
2 increase shall be deemed property placed
in service on the 
3 date of such increase in basis.
4  (6) The term "placed in service" shall have the same

5 meaning as under Section 46 of the Internal Revenue Code.
6  (7) If during any taxable year, any property ceases to

7 be qualified property in the hands of the taxpayer within 
8 48 months after
being placed in service, or the situs of 
9 any qualified property is
moved outside Illinois within 48 
10 months after being placed in service, the
Personal Property 
11 Tax Replacement Income Tax for such taxable year shall be

12 increased. Such increase shall be determined by (i) 
13 recomputing the
investment credit which would have been 
14 allowed for the year in which
credit for such property was 
15 originally allowed by eliminating such
property from such 
16 computation and, (ii) subtracting such recomputed credit

17 from the amount of credit previously allowed. For the 
18 purposes of this
paragraph (7), a reduction of the basis of 
19 qualified property resulting
from a redetermination of the 
20 purchase price shall be deemed a disposition
of qualified 
21 property to the extent of such reduction.
22  (8) Unless the investment credit is extended by law, 
23 the
basis of qualified property shall not include costs 
24 incurred after
December 31, 2018, except for costs incurred 
25 pursuant to a binding
contract entered into on or before 
26 December 31, 2018.
 
 
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1  (9) Each taxable year ending before December 31, 2000, 
2 a partnership may
elect to pass through to its
partners the 
3 credits to which the partnership is entitled under this 
4 subsection
(e) for the taxable year. A partner may use the 
5 credit allocated to him or her
under this paragraph only 
6 against the tax imposed in subsections (c) and (d) of
this 
7 Section. If the partnership makes that election, those 
8 credits shall be
allocated among the partners in the 
9 partnership in accordance with the rules
set forth in 
10 Section 704(b) of the Internal Revenue Code, and the rules

11 promulgated under that Section, and the allocated amount of 
12 the credits shall
be allowed to the partners for that 
13 taxable year. The partnership shall make
this election on 
14 its Personal Property Tax Replacement Income Tax return for

15 that taxable year. The election to pass through the credits 
16 shall be
irrevocable.
17  For taxable years ending on or after December 31, 2000, 
18 a
partner that qualifies its
partnership for a subtraction 
19 under subparagraph (I) of paragraph (2) of
subsection (d) 
20 of Section 203 or a shareholder that qualifies a Subchapter 
21 S
corporation for a subtraction under subparagraph (S) of 
22 paragraph (2) of
subsection (b) of Section 203 shall be 
23 allowed a credit under this subsection
(e) equal to its 
24 share of the credit earned under this subsection (e) during

25 the taxable year by the partnership or Subchapter S 
26 corporation, determined in
accordance with the 
 
 
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1 determination of income and distributive share of
income 
2 under Sections 702 and 704 and Subchapter S of the Internal 
3 Revenue
Code. This paragraph is exempt from the provisions 
4 of Section 250.
5 (f) Investment credit; Enterprise Zone; River Edge 
6Redevelopment Zone.
7  (1) A taxpayer shall be allowed a credit against the 
8 tax imposed
by subsections (a) and (b) of this Section for 
9 investment in qualified
property which is placed in service 
10 in an Enterprise Zone created
pursuant to the Illinois 
11 Enterprise Zone Act or, for property placed in service on 
12 or after July 1, 2006, a River Edge Redevelopment Zone 
13 established pursuant to the River Edge Redevelopment Zone 
14 Act. For partners, shareholders
of Subchapter S 
15 corporations, and owners of limited liability companies,

16 if the liability company is treated as a partnership for 
17 purposes of
federal and State income taxation, there shall 
18 be allowed a credit under
this subsection (f) to be 
19 determined in accordance with the determination
of income 
20 and distributive share of income under Sections 702 and 704 
21 and
Subchapter S of the Internal Revenue Code. The credit 
22 shall be .5% of the
basis for such property. The credit 
23 shall be available only in the taxable
year in which the 
24 property is placed in service in the Enterprise Zone or 
25 River Edge Redevelopment Zone and
shall not be allowed to 
26 the extent that it would reduce a taxpayer's
liability for 
 
 
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1 the tax imposed by subsections (a) and (b) of this Section 
2 to
below zero. For tax years ending on or after December 
3 31, 1985, the credit
shall be allowed for the tax year in 
4 which the property is placed in
service, or, if the amount 
5 of the credit exceeds the tax liability for that
year, 
6 whether it exceeds the original liability or the liability 
7 as later
amended, such excess may be carried forward and 
8 applied to the tax
liability of the 5 taxable years 
9 following the excess credit year.
The credit shall be 
10 applied to the earliest year for which there is a

11 liability. If there is credit from more than one tax year 
12 that is available
to offset a liability, the credit 
13 accruing first in time shall be applied
first.
14  (2) The term qualified property means property which:
15   (A) is tangible, whether new or used, including 
16 buildings and
structural components of buildings;
17   (B) is depreciable pursuant to Section 167 of the 
18 Internal Revenue
Code, except that "3-year property" 
19 as defined in Section 168(c)(2)(A) of
that Code is not 
20 eligible for the credit provided by this subsection 
21 (f);
22   (C) is acquired by purchase as defined in Section 
23 179(d) of
the Internal Revenue Code;
24   (D) is used in the Enterprise Zone or River Edge 
25 Redevelopment Zone by the taxpayer; and
26   (E) has not been previously used in Illinois in 
 
 
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1 such a manner and by
such a person as would qualify for 
2 the credit provided by this subsection
(f) or 
3 subsection (e).
4  (3) The basis of qualified property shall be the basis 
5 used to compute
the depreciation deduction for federal 
6 income tax purposes.
7  (4) If the basis of the property for federal income tax 
8 depreciation
purposes is increased after it has been placed 
9 in service in the Enterprise
Zone or River Edge 
10 Redevelopment Zone by the taxpayer, the amount of such 
11 increase shall be deemed property
placed in service on the 
12 date of such increase in basis.
13  (5) The term "placed in service" shall have the same 
14 meaning as under
Section 46 of the Internal Revenue Code.
15  (6) If during any taxable year, any property ceases to 
16 be qualified
property in the hands of the taxpayer within 
17 48 months after being placed
in service, or the situs of 
18 any qualified property is moved outside the
Enterprise Zone 
19 or River Edge Redevelopment Zone within 48 months after 
20 being placed in service, the tax
imposed under subsections 
21 (a) and (b) of this Section for such taxable year
shall be 
22 increased. Such increase shall be determined by (i) 
23 recomputing
the investment credit which would have been 
24 allowed for the year in which
credit for such property was 
25 originally allowed by eliminating such
property from such 
26 computation, and (ii) subtracting such recomputed credit

 
 
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1 from the amount of credit previously allowed. For the 
2 purposes of this
paragraph (6), a reduction of the basis of 
3 qualified property resulting
from a redetermination of the 
4 purchase price shall be deemed a disposition
of qualified 
5 property to the extent of such reduction.
6  (7) There shall be allowed an additional credit equal 
7 to 0.5% of the basis of qualified property placed in 
8 service during the taxable year in a River Edge 
9 Redevelopment Zone, provided such property is placed in 
10 service on or after July 1, 2006, and the taxpayer's base 
11 employment within Illinois has increased by 1% or more over 
12 the preceding year as determined by the taxpayer's 
13 employment records filed with the Illinois Department of 
14 Employment Security. Taxpayers who are new to Illinois 
15 shall be deemed to have met the 1% growth in base 
16 employment for the first year in which they file employment 
17 records with the Illinois Department of Employment 
18 Security. If, in any year, the increase in base employment 
19 within Illinois over the preceding year is less than 1%, 
20 the additional credit shall be limited to that percentage 
21 times a fraction, the numerator of which is 0.5% and the 
22 denominator of which is 1%, but shall not exceed 0.5%.

23 (g) (Blank).
24 (h) Investment credit; High Impact Business.
25  (1) Subject to subsections (b) and (b-5) of Section
5.5 
26 of the Illinois Enterprise Zone Act, a taxpayer shall be 
 
 
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1 allowed a credit
against the tax imposed by subsections (a) 
2 and (b) of this Section for
investment in qualified

3 property which is placed in service by a Department of 
4 Commerce and Economic Opportunity
designated High Impact 
5 Business. The credit shall be .5% of the basis
for such 
6 property. The credit shall not be available (i) until the 
7 minimum
investments in qualified property set forth in 
8 subdivision (a)(3)(A) of
Section 5.5 of the Illinois

9 Enterprise Zone Act have been satisfied
or (ii) until the 
10 time authorized in subsection (b-5) of the Illinois

11 Enterprise Zone Act for entities designated as High Impact 
12 Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and 
13 (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone 
14 Act, and shall not be allowed to the extent that it would

15 reduce a taxpayer's liability for the tax imposed by 
16 subsections (a) and (b) of
this Section to below zero. The 
17 credit applicable to such investments shall be
taken in the 
18 taxable year in which such investments have been completed. 
19 The
credit for additional investments beyond the minimum 
20 investment by a designated
high impact business authorized 
21 under subdivision (a)(3)(A) of Section 5.5 of
the Illinois 
22 Enterprise Zone Act shall be available only in the taxable 
23 year in
which the property is placed in service and shall 
24 not be allowed to the extent
that it would reduce a 
25 taxpayer's liability for the tax imposed by subsections
(a) 
26 and (b) of this Section to below zero.
For tax years ending 
 
 
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1 on or after December 31, 1987, the credit shall be
allowed 
2 for the tax year in which the property is placed in 
3 service, or, if
the amount of the credit exceeds the tax 
4 liability for that year, whether
it exceeds the original 
5 liability or the liability as later amended, such
excess 
6 may be carried forward and applied to the tax liability of 
7 the 5
taxable years following the excess credit year. The 
8 credit shall be
applied to the earliest year for which 
9 there is a liability. If there is
credit from more than one 
10 tax year that is available to offset a liability,
the 
11 credit accruing first in time shall be applied first.
12  Changes made in this subdivision (h)(1) by Public Act 
13 88-670
restore changes made by Public Act 85-1182 and 
14 reflect existing law.
15  (2) The term qualified property means property which:
16   (A) is tangible, whether new or used, including 
17 buildings and
structural components of buildings;
18   (B) is depreciable pursuant to Section 167 of the 
19 Internal Revenue
Code, except that "3-year property" 
20 as defined in Section 168(c)(2)(A) of
that Code is not 
21 eligible for the credit provided by this subsection 
22 (h);
23   (C) is acquired by purchase as defined in Section 
24 179(d) of the
Internal Revenue Code; and
25   (D) is not eligible for the Enterprise Zone 
26 Investment Credit provided
by subsection (f) of this 
 
 
10000SB0009ham001- 21 -LRB100 06347 HLH 27036 a


1 Section.
2  (3) The basis of qualified property shall be the basis 
3 used to compute
the depreciation deduction for federal 
4 income tax purposes.
5  (4) If the basis of the property for federal income tax 
6 depreciation
purposes is increased after it has been placed 
7 in service in a federally
designated Foreign Trade Zone or 
8 Sub-Zone located in Illinois by the taxpayer,
the amount of 
9 such increase shall be deemed property placed in service on

10 the date of such increase in basis.
11  (5) The term "placed in service" shall have the same 
12 meaning as under
Section 46 of the Internal Revenue Code.
13  (6) If during any taxable year ending on or before 
14 December 31, 1996,
any property ceases to be qualified

15 property in the hands of the taxpayer within 48 months 
16 after being placed
in service, or the situs of any 
17 qualified property is moved outside
Illinois within 48 
18 months after being placed in service, the tax imposed
under 
19 subsections (a) and (b) of this Section for such taxable 
20 year shall
be increased. Such increase shall be determined 
21 by (i) recomputing the
investment credit which would have 
22 been allowed for the year in which
credit for such property 
23 was originally allowed by eliminating such
property from 
24 such computation, and (ii) subtracting such recomputed 
25 credit
from the amount of credit previously allowed. For 
26 the purposes of this
paragraph (6), a reduction of the 
 
 
10000SB0009ham001- 22 -LRB100 06347 HLH 27036 a


1 basis of qualified property resulting
from a 
2 redetermination of the purchase price shall be deemed a 
3 disposition
of qualified property to the extent of such 
4 reduction.
5  (7) Beginning with tax years ending after December 31, 
6 1996, if a
taxpayer qualifies for the credit under this 
7 subsection (h) and thereby is
granted a tax abatement and 
8 the taxpayer relocates its entire facility in
violation of 
9 the explicit terms and length of the contract under Section

10 18-183 of the Property Tax Code, the tax imposed under 
11 subsections
(a) and (b) of this Section shall be increased 
12 for the taxable year
in which the taxpayer relocated its 
13 facility by an amount equal to the
amount of credit 
14 received by the taxpayer under this subsection (h).
15 (i) Credit for Personal Property Tax Replacement Income 
16Tax.
For tax years ending prior to December 31, 2003, a credit 
17shall be allowed
against the tax imposed by
subsections (a) and 
18(b) of this Section for the tax imposed by subsections (c)
and 
19(d) of this Section. This credit shall be computed by 
20multiplying the tax
imposed by subsections (c) and (d) of this 
21Section by a fraction, the numerator
of which is base income 
22allocable to Illinois and the denominator of which is
Illinois 
23base income, and further multiplying the product by the tax 
24rate
imposed by subsections (a) and (b) of this Section.
25 Any credit earned on or after December 31, 1986 under
this 
26subsection which is unused in the year
the credit is computed 
 
 
10000SB0009ham001- 23 -LRB100 06347 HLH 27036 a


1because it exceeds the tax liability imposed by
subsections (a) 
2and (b) for that year (whether it exceeds the original

3liability or the liability as later amended) may be carried 
4forward and
applied to the tax liability imposed by subsections 
5(a) and (b) of the 5
taxable years following the excess credit 
6year, provided that no credit may
be carried forward to any 
7year ending on or
after December 31, 2003. This credit shall be

8applied first to the earliest year for which there is a 
9liability. If
there is a credit under this subsection from more 
10than one tax year that is
available to offset a liability the 
11earliest credit arising under this
subsection shall be applied 
12first.
13 If, during any taxable year ending on or after December 31, 
141986, the
tax imposed by subsections (c) and (d) of this 
15Section for which a taxpayer
has claimed a credit under this 
16subsection (i) is reduced, the amount of
credit for such tax 
17shall also be reduced. Such reduction shall be
determined by 
18recomputing the credit to take into account the reduced tax

19imposed by subsections (c) and (d). If any portion of the

20reduced amount of credit has been carried to a different 
21taxable year, an
amended return shall be filed for such taxable 
22year to reduce the amount of
credit claimed.
23 (j) Training expense credit. Beginning with tax years 
24ending on or
after December 31, 1986 and prior to December 31, 
252003, a taxpayer shall be
allowed a credit against the
tax 
26imposed by subsections (a) and (b) under this Section
for all 
 
 
10000SB0009ham001- 24 -LRB100 06347 HLH 27036 a


1amounts paid or accrued, on behalf of all persons
employed by 
2the taxpayer in Illinois or Illinois residents employed
outside 
3of Illinois by a taxpayer, for educational or vocational 
4training in
semi-technical or technical fields or semi-skilled 
5or skilled fields, which
were deducted from gross income in the 
6computation of taxable income. The
credit against the tax 
7imposed by subsections (a) and (b) shall be 1.6% of
such 
8training expenses. For partners, shareholders of subchapter S

9corporations, and owners of limited liability companies, if the 
10liability
company is treated as a partnership for purposes of 
11federal and State income
taxation, there shall be allowed a 
12credit under this subsection (j) to be
determined in accordance 
13with the determination of income and distributive
share of 
14income under Sections 702 and 704 and subchapter S of the 
15Internal
Revenue Code.
16 Any credit allowed under this subsection which is unused in 
17the year
the credit is earned may be carried forward to each of 
18the 5 taxable
years following the year for which the credit is 
19first computed until it is
used. This credit shall be applied 
20first to the earliest year for which
there is a liability. If 
21there is a credit under this subsection from more
than one tax 
22year that is available to offset a liability the earliest

23credit arising under this subsection shall be applied first. No 
24carryforward
credit may be claimed in any tax year ending on or 
25after
December 31, 2003.
26 (k) Research and development credit. For tax years ending 
 
 
10000SB0009ham001- 25 -LRB100 06347 HLH 27036 a


1after July 1, 1990 and prior to
December 31, 2003, and 
2beginning again for tax years ending on or after December 31, 
32004, and ending prior to January 1, 2016, a taxpayer shall be

4allowed a credit against the tax imposed by subsections (a) and 
5(b) of this
Section for increasing research activities in this 
6State. The credit
allowed against the tax imposed by 
7subsections (a) and (b) shall be equal
to 6 1/2% of the 
8qualifying expenditures for increasing research activities
in 
9this State. For partners, shareholders of subchapter S 
10corporations, and
owners of limited liability companies, if the 
11liability company is treated as a
partnership for purposes of 
12federal and State income taxation, there shall be
allowed a 
13credit under this subsection to be determined in accordance 
14with the
determination of income and distributive share of 
15income under Sections 702 and
704 and subchapter S of the 
16Internal Revenue Code.
17 For purposes of this subsection, "qualifying expenditures" 
18means the
qualifying expenditures as defined for the federal 
19credit for increasing
research activities which would be 
20allowable under Section 41 of the
Internal Revenue Code and 
21which are conducted in this State, "qualifying
expenditures for 
22increasing research activities in this State" means the
excess 
23of qualifying expenditures for the taxable year in which 
24incurred
over qualifying expenditures for the base period, 
25"qualifying expenditures
for the base period" means (i) for tax 
26years ending prior to December 31, 2017, the average of the 
 
 
10000SB0009ham001- 26 -LRB100 06347 HLH 27036 a


1qualifying expenditures for
each year in the base period; and 
2(ii) for tax years ending on or after December 31, 2017, 50% of 
3the average of the qualifying expenditures for each year in the 
4base period, and "base period" means the 3 taxable years

5immediately preceding the taxable year for which the 
6determination is
being made.
7 Any credit in excess of the tax liability for the taxable 
8year
may be carried forward. A taxpayer may elect to have the

9unused credit shown on its final completed return carried over 
10as a credit
against the tax liability for the following 5 
11taxable years or until it has
been fully used, whichever occurs 
12first; provided that no credit earned in a tax year ending 
13prior to December 31, 2003 may be carried forward to any year 
14ending on or after December 31, 2003.
15 If an unused credit is carried forward to a given year from 
162 or more
earlier years, that credit arising in the earliest 
17year will be applied
first against the tax liability for the 
18given year. If a tax liability for
the given year still 
19remains, the credit from the next earliest year will
then be 
20applied, and so on, until all credits have been used or no tax

21liability for the given year remains. Any remaining unused 
22credit or
credits then will be carried forward to the next 
23following year in which a
tax liability is incurred, except 
24that no credit can be carried forward to
a year which is more 
25than 5 years after the year in which the expense for
which the 
26credit is given was incurred.
 
 
10000SB0009ham001- 27 -LRB100 06347 HLH 27036 a


1 No inference shall be drawn from this amendatory Act of the 
291st General
Assembly in construing this Section for taxable 
3years beginning before January
1, 1999.
4 This subsection (k) is exempt from the provisions of 
5Section 250. 
6 It is the intent of the General Assembly that the research 
7and development credit under this subsection (k) shall apply 
8continuously for all tax years ending on or after December 31, 
92004, including, but not limited to, the period beginning on 
10January 1, 2016 and ending on the effective date of this 
11amendatory Act of the 100th General Assembly. All actions taken 
12in reliance on the continuation of the credit under this 
13subsection (k) by any taxpayer are hereby validated. 
14 (l) Environmental Remediation Tax Credit.
15  (i) For tax years ending after December 31, 1997 and on 
16 or before
December 31, 2001, a taxpayer shall be allowed a 
17 credit against the tax
imposed by subsections (a) and (b) 
18 of this Section for certain amounts paid
for unreimbursed 
19 eligible remediation costs, as specified in this 
20 subsection.
For purposes of this Section, "unreimbursed 
21 eligible remediation costs" means
costs approved by the 
22 Illinois Environmental Protection Agency ("Agency") under

23 Section 58.14 of the Environmental Protection Act that were 
24 paid in performing
environmental remediation at a site for 
25 which a No Further Remediation Letter
was issued by the 
26 Agency and recorded under Section 58.10 of the 
 
 
10000SB0009ham001- 28 -LRB100 06347 HLH 27036 a


1 Environmental
Protection Act. The credit must be claimed 
2 for the taxable year in which
Agency approval of the 
3 eligible remediation costs is granted. The credit is
not 
4 available to any taxpayer if the taxpayer or any related 
5 party caused or
contributed to, in any material respect, a 
6 release of regulated substances on,
in, or under the site 
7 that was identified and addressed by the remedial
action 
8 pursuant to the Site Remediation Program of the 
9 Environmental Protection
Act. After the Pollution Control 
10 Board rules are adopted pursuant to the
Illinois 
11 Administrative Procedure Act for the administration and 
12 enforcement of
Section 58.9 of the Environmental 
13 Protection Act, determinations as to credit
availability 
14 for purposes of this Section shall be made consistent with 
15 those
rules. For purposes of this Section, "taxpayer" 
16 includes a person whose tax
attributes the taxpayer has 
17 succeeded to under Section 381 of the Internal
Revenue Code 
18 and "related party" includes the persons disallowed a 
19 deduction
for losses by paragraphs (b), (c), and (f)(1) of 
20 Section 267 of the Internal
Revenue Code by virtue of being 
21 a related taxpayer, as well as any of its
partners. The 
22 credit allowed against the tax imposed by subsections (a) 
23 and
(b) shall be equal to 25% of the unreimbursed eligible 
24 remediation costs in
excess of $100,000 per site, except 
25 that the $100,000 threshold shall not apply
to any site 
26 contained in an enterprise zone as determined by the 
 
 
10000SB0009ham001- 29 -LRB100 06347 HLH 27036 a


1 Department of
Commerce and Community Affairs (now 
2 Department of Commerce and Economic Opportunity). The 
3 total credit allowed shall not exceed
$40,000 per year with 
4 a maximum total of $150,000 per site. For partners and

5 shareholders of subchapter S corporations, there shall be 
6 allowed a credit
under this subsection to be determined in 
7 accordance with the determination of
income and 
8 distributive share of income under Sections 702 and 704 and

9 subchapter S of the Internal Revenue Code.
10  (ii) A credit allowed under this subsection that is 
11 unused in the year
the credit is earned may be carried 
12 forward to each of the 5 taxable years
following the year 
13 for which the credit is first earned until it is used.
The 
14 term "unused credit" does not include any amounts of 
15 unreimbursed eligible
remediation costs in excess of the 
16 maximum credit per site authorized under
paragraph (i). 
17 This credit shall be applied first to the earliest year
for 
18 which there is a liability. If there is a credit under this 
19 subsection
from more than one tax year that is available to 
20 offset a liability, the
earliest credit arising under this 
21 subsection shall be applied first. A
credit allowed under 
22 this subsection may be sold to a buyer as part of a sale
of 
23 all or part of the remediation site for which the credit 
24 was granted. The
purchaser of a remediation site and the 
25 tax credit shall succeed to the unused
credit and remaining 
26 carry-forward period of the seller. To perfect the

 
 
10000SB0009ham001- 30 -LRB100 06347 HLH 27036 a


1 transfer, the assignor shall record the transfer in the 
2 chain of title for the
site and provide written notice to 
3 the Director of the Illinois Department of
Revenue of the 
4 assignor's intent to sell the remediation site and the 
5 amount of
the tax credit to be transferred as a portion of 
6 the sale. In no event may a
credit be transferred to any 
7 taxpayer if the taxpayer or a related party would
not be 
8 eligible under the provisions of subsection (i).
9  (iii) For purposes of this Section, the term "site" 
10 shall have the same
meaning as under Section 58.2 of the 
11 Environmental Protection Act.
12 (m) Education expense credit. Beginning with tax years 
13ending after
December 31, 1999, a taxpayer who
is the custodian 
14of one or more qualifying pupils shall be allowed a credit

15against the tax imposed by subsections (a) and (b) of this 
16Section for
qualified education expenses incurred on behalf of 
17the qualifying pupils.
The credit shall be equal to 25% of 
18qualified education expenses, but in no
event may the total 
19credit under this subsection claimed by a
family that is the

20custodian of qualifying pupils exceed (i) $500 for tax years 
21ending prior to December 31, 2017, and (ii) $750 for tax years 
22ending on or after December 31, 2017. In no event shall a 
23credit under
this subsection reduce the taxpayer's liability 
24under this Act to less than
zero. Notwithstanding any other 
25provision of law, for taxable years beginning on or after 
26January 1, 2018, no taxpayer may claim a credit under this 
 
 
10000SB0009ham001- 31 -LRB100 06347 HLH 27036 a


1subsection (m) if the taxpayer's adjusted gross income for the 
2taxable year exceeds (i) $500,000, in the case of spouses 
3filing a joint federal tax return or (ii) $250,000, in the case 
4of all other taxpayers. This subsection is exempt from the 
5provisions of Section 250 of this
Act.
6 For purposes of this subsection:
7 "Qualifying pupils" means individuals who (i) are 
8residents of the State of
Illinois, (ii) are under the age of 
921 at the close of the school year for
which a credit is 
10sought, and (iii) during the school year for which a credit
is 
11sought were full-time pupils enrolled in a kindergarten through 
12twelfth
grade education program at any school, as defined in 
13this subsection.
14 "Qualified education expense" means the amount incurred
on 
15behalf of a qualifying pupil in excess of $250 for tuition, 
16book fees, and
lab fees at the school in which the pupil is 
17enrolled during the regular school
year. 
18 "School" means any public or nonpublic elementary or 
19secondary school in
Illinois that is in compliance with Title 
20VI of the Civil Rights Act of 1964
and attendance at which 
21satisfies the requirements of Section 26-1 of the
School Code, 
22except that nothing shall be construed to require a child to

23attend any particular public or nonpublic school to qualify for 
24the credit
under this Section.
25 "Custodian" means, with respect to qualifying pupils, an 
26Illinois resident
who is a parent, the parents, a legal 
 
 
10000SB0009ham001- 32 -LRB100 06347 HLH 27036 a


1guardian, or the legal guardians of the
qualifying pupils.
2 (n) River Edge Redevelopment Zone site remediation tax 
3credit.

4  (i) For tax years ending on or after December 31, 2006, 
5 a taxpayer shall be allowed a credit against the tax 
6 imposed by subsections (a) and (b) of this Section for 
7 certain amounts paid for unreimbursed eligible remediation 
8 costs, as specified in this subsection. For purposes of 
9 this Section, "unreimbursed eligible remediation costs" 
10 means costs approved by the Illinois Environmental 
11 Protection Agency ("Agency") under Section 58.14a of the 
12 Environmental Protection Act that were paid in performing 
13 environmental remediation at a site within a River Edge 
14 Redevelopment Zone for which a No Further Remediation 
15 Letter was issued by the Agency and recorded under Section 
16 58.10 of the Environmental Protection Act. The credit must 
17 be claimed for the taxable year in which Agency approval of 
18 the eligible remediation costs is granted. The credit is 
19 not available to any taxpayer if the taxpayer or any 
20 related party caused or contributed to, in any material 
21 respect, a release of regulated substances on, in, or under 
22 the site that was identified and addressed by the remedial 
23 action pursuant to the Site Remediation Program of the 
24 Environmental Protection Act. Determinations as to credit 
25 availability for purposes of this Section shall be made 
26 consistent with rules adopted by the Pollution Control 
 
 
10000SB0009ham001- 33 -LRB100 06347 HLH 27036 a


1 Board pursuant to the Illinois Administrative Procedure 
2 Act for the administration and enforcement of Section 58.9 
3 of the Environmental Protection Act. For purposes of this 
4 Section, "taxpayer" includes a person whose tax attributes 
5 the taxpayer has succeeded to under Section 381 of the 
6 Internal Revenue Code and "related party" includes the 
7 persons disallowed a deduction for losses by paragraphs 
8 (b), (c), and (f)(1) of Section 267 of the Internal Revenue 
9 Code by virtue of being a related taxpayer, as well as any 
10 of its partners. The credit allowed against the tax imposed 
11 by subsections (a) and (b) shall be equal to 25% of the 
12 unreimbursed eligible remediation costs in excess of 
13 $100,000 per site.
14  (ii) A credit allowed under this subsection that is 
15 unused in the year the credit is earned may be carried 
16 forward to each of the 5 taxable years following the year 
17 for which the credit is first earned until it is used. This 
18 credit shall be applied first to the earliest year for 
19 which there is a liability. If there is a credit under this 
20 subsection from more than one tax year that is available to 
21 offset a liability, the earliest credit arising under this 
22 subsection shall be applied first. A credit allowed under 
23 this subsection may be sold to a buyer as part of a sale of 
24 all or part of the remediation site for which the credit 
25 was granted. The purchaser of a remediation site and the 
26 tax credit shall succeed to the unused credit and remaining 
 
 
10000SB0009ham001- 34 -LRB100 06347 HLH 27036 a


1 carry-forward period of the seller. To perfect the 
2 transfer, the assignor shall record the transfer in the 
3 chain of title for the site and provide written notice to 
4 the Director of the Illinois Department of Revenue of the 
5 assignor's intent to sell the remediation site and the 
6 amount of the tax credit to be transferred as a portion of 
7 the sale. In no event may a credit be transferred to any 
8 taxpayer if the taxpayer or a related party would not be 
9 eligible under the provisions of subsection (i).
10  (iii) For purposes of this Section, the term "site" 
11 shall have the same meaning as under Section 58.2 of the 
12 Environmental Protection Act.
13 (o) For each of taxable years during the Compassionate Use 
14of Medical Cannabis Pilot Program, a surcharge is imposed on 
15all taxpayers on income arising from the sale or exchange of 
16capital assets, depreciable business property, real property 
17used in the trade or business, and Section 197 intangibles of 
18an organization registrant under the Compassionate Use of 
19Medical Cannabis Pilot Program Act. The amount of the surcharge 
20is equal to the amount of federal income tax liability for the 
21taxable year attributable to those sales and exchanges. The 
22surcharge imposed does not apply if:
23  (1) the medical cannabis cultivation center 
24 registration, medical cannabis dispensary registration, or 
25 the property of a registration is transferred as a result 
26 of any of the following:
 
 
10000SB0009ham001- 35 -LRB100 06347 HLH 27036 a


1   (A) bankruptcy, a receivership, or a debt 
2 adjustment initiated by or against the initial 
3 registration or the substantial owners of the initial 
4 registration;
5   (B) cancellation, revocation, or termination of 
6 any registration by the Illinois Department of Public 
7 Health;
8   (C) a determination by the Illinois Department of 
9 Public Health that transfer of the registration is in 
10 the best interests of Illinois qualifying patients as 
11 defined by the Compassionate Use of Medical Cannabis 
12 Pilot Program Act;
13   (D) the death of an owner of the equity interest in 
14 a registrant;
15   (E) the acquisition of a controlling interest in 
16 the stock or substantially all of the assets of a 
17 publicly traded company;
18   (F) a transfer by a parent company to a wholly 
19 owned subsidiary; or
20   (G) the transfer or sale to or by one person to 
21 another person where both persons were initial owners 
22 of the registration when the registration was issued; 
23 or
24  (2) the cannabis cultivation center registration, 
25 medical cannabis dispensary registration, or the 
26 controlling interest in a registrant's property is 
 
 
10000SB0009ham001- 36 -LRB100 06347 HLH 27036 a


1 transferred in a transaction to lineal descendants in which 
2 no gain or loss is recognized or as a result of a 
3 transaction in accordance with Section 351 of the Internal 
4 Revenue Code in which no gain or loss is recognized.
5(Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905, 
6eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; 98-756, 
7eff. 7-16-14.)

8 (35 ILCS 5/222)
9 Sec. 222. Live theater production credit. 
10 (a) For tax years beginning on or after January 1, 2012 and 
11beginning prior to January 1, 2027, a taxpayer who has received 
12a tax credit award under the Live Theater Production Tax Credit 
13Act is entitled to a credit against the taxes imposed under 
14subsections (a) and (b) of Section 201 of this Act in an amount 
15determined under that Act by the Department of Commerce and 
16Economic Opportunity.
17 (b) If the taxpayer is a partnership, limited liability 
18partnership, limited liability company, or Subchapter S 
19corporation, the tax credit award is allowed to the partners, 
20unit holders, or shareholders in accordance with the 
21determination of income and distributive share of income under 
22Sections 702 and 704 and Subchapter S of the Internal Revenue 
23Code. 
24 (c) A sale, assignment, or transfer of the tax credit award 
25may be made by the taxpayer earning the credit within one year 
 
 
10000SB0009ham001- 37 -LRB100 06347 HLH 27036 a


1after the credit is awarded in accordance with rules adopted by 
2the Department of Commerce and Economic Opportunity. 
3 (d) The Department of Revenue, in cooperation with the 
4Department of Commerce and Economic Opportunity, shall adopt 
5rules to enforce and administer the provisions of this Section. 
6 (e) The tax credit award may not be carried back. If the 
7amount of the credit exceeds the tax liability for the year, 
8the excess may be carried forward and applied to the tax 
9liability of the 5 tax years following the excess credit year. 
10The tax credit award shall be applied to the earliest year for 
11which there is a tax liability. If there are credits from more 
12than one tax year that are available to offset liability, the 
13earlier credit shall be applied first. In no event may a credit 
14under this Section reduce the taxpayer's liability to less than 
15zero. 

16(Source: P.A. 97-636, eff. 6-1-12.)

17 (35 ILCS 5/225 new)
18 Sec. 225. Credit for instructional materials and supplies. 
19For taxable years beginning on and after January 1, 2017, a 
20taxpayer shall be allowed a credit in the amount paid by the 
21taxpayer during the taxable year for instructional materials 
22and supplies with respect to classroom based instruction in a 
23qualified school, or $250, whichever is less, provided that the 
24taxpayer is a teacher, instructor, counselor, principal, or 
25aide in a qualified school for at least 900 hours during a 
 
 
10000SB0009ham001- 38 -LRB100 06347 HLH 27036 a


1school year.
2 The credit may not be carried back and may not reduce the 
3taxpayer's liability to less than zero. If the amount of the 
4credit exceeds the tax liability for the year, the excess may 
5be carried forward and applied to the tax liability of the 5 
6taxable years following the excess credit year. The tax credit 
7shall be applied to the earliest year for which there is a tax 
8liability. If there are credits for more than one year that are 
9available to offset a liability, the earlier credit shall be 
10applied first. 
11 For purposes of this Section, the term "materials and 
12supplies" means amounts paid for instructional materials or 
13supplies that are designated for classroom use in any qualified 
14school. For purposes of this Section, the term "qualified 
15school" means a public school or non-public school located in 
16Illinois. 
17 This Section is exempt from the provisions of Section 250.

18 Section 10. The Film
Production Services Tax Credit Act of 
192008 is amended by changing Section 42 as follows:

20 (35 ILCS 16/42)
21 Sec. 42. Sunset of credits. The application of credits 
22awarded pursuant to this Act shall be limited by a reasonable 
23and appropriate sunset date. A taxpayer shall not be entitled 
24to take a credit awarded pursuant to this Act for tax years 
 
 
10000SB0009ham001- 39 -LRB100 06347 HLH 27036 a


1beginning on or after January 1, 2027 10 years after the 
2effective date of this amendatory Act of the 97th General 
3Assembly. After the initial 10-year sunset, the General 
4Assembly may extend the sunset date by 5-year intervals. 

5(Source: P.A. 97-2, eff. 5-6-11; 97-3, eff. 5-6-11.)

6 Section 15. The Illinois False Claims Act is amended by 
7changing Section 3 as follows:




8 (740 ILCS 175/3) (from Ch. 127, par. 4103)


9 Sec. 3. False claims. 

10 (a) Liability for certain acts. 
11  (1) In general, any person who:


12   (A) knowingly presents, or causes to be presented, 
13 a false or fraudulent claim
for payment or approval;


14   (B) knowingly makes, uses, or causes to be made or 
15 used, a false record
or statement material to a false 
16 or fraudulent claim;


17   (C) conspires to commit a violation of 
18 subparagraph (A), (B), (D), (E), (F), or (G);


19   (D) has possession, custody, or control of 
20 property or money used, or to
be used, by the State and 
21 knowingly delivers, or causes to be delivered, less 
22 than all the money or property;


23   (E) is authorized to make or deliver a document 
24 certifying receipt of
property used, or to be used, by 
 
 
10000SB0009ham001- 40 -LRB100 06347 HLH 27036 a


1 the State and, intending to defraud the
State, makes or 
2 delivers the receipt without completely knowing that 
3 the
information on the receipt is true;

4 
  (F) knowingly buys, or receives as a pledge of an 
5 obligation or debt,
public property from an officer or 
6 employee of the State, or a member of
the Guard, who 
7 lawfully may not sell or pledge property; or 


8   (G) knowingly makes, uses, or causes to be made or 
9 used, a false record
or statement material to an 
10 obligation to pay or transmit
money or property to the 
11 State, or knowingly conceals or knowingly and 
12 improperly avoids or decreases an obligation to pay or 
13 transmit money or property to the State,

14 is liable to the State for a civil penalty of not less than 
15 $5,500 and not
more than $11,000, plus 3 times the amount 
16 of damages which the State
sustains because of the act of 
17 that person. The penalties in this Section are intended to 
18 be remedial rather than punitive, and shall not preclude, 
19 nor be precluded by, a criminal prosecution for the same 
20 conduct. 
21  (2) A person violating
this subsection shall also be 
22 liable to the State for the costs of a civil
action brought 
23 to recover any such penalty or damages.

24 (b) Definitions. For purposes of this Section: 
25  (1) The terms
"knowing" and "knowingly": 
26   (A) mean that a person, with respect to 
 
 
10000SB0009ham001- 41 -LRB100 06347 HLH 27036 a


1 information:


2    (i) has actual knowledge of the information;


3    (ii) acts in deliberate ignorance of the truth 
4 or falsity of the
information; or


5    (iii) acts in reckless disregard of the truth 
6 or falsity of the
information, and
7   (B) require no proof of specific intent to defraud.

8  (2) The term "claim":
9   (A) means any
request or demand, whether under a 
10 contract or otherwise, for money or
property and 
11 whether or not the State has title to the money or 
12 property, that
13    (i) is presented to an officer, employee, or 
14 agent of the State; or
15    (ii) is made to a contractor, grantee, or other 
16 recipient, if the money or property is to be spent 
17 or used on the State's behalf or to advance a State 
18 program or interest, and if the
State: 
19     (I) provides or has provided any portion 
20 of the money or property requested or
demanded; 
21 or
22     (II) will reimburse such contractor, 
23 grantee, or other
recipient for any portion of 
24 the money or property which is requested
or 
25 demanded; and
26   (B) does not include requests or demands for money 
 
 
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1 or property that the State has paid to an individual as 
2 compensation for State employment or as an income 
3 subsidy with no restrictions on that individual's use 
4 of the money or property.


5  (3) The term "obligation" means an established duty, 
6 whether or not fixed, arising from an express or implied 
7 contractual, grantor-grantee, or licensor-licensee 
8 relationship, from a fee-based or similar relationship, 
9 from statute or regulation, or from the retention of any 
10 overpayment.
11  (4) The term "material" means having a natural tendency 
12 to influence, or be capable of influencing, the payment or 
13 receipt of money or property. 
14 (c) Exclusion. This Section does not apply to any taxes 
15imposed, collected, or administered by the State of Illinois 
16claims, records, or
statements made under the Illinois Income 
17Tax Act.

18(Source: P.A. 95-128, eff. 1-1-08; 96-1304, eff. 7-27-10.)


19 Section 20. The Limited Liability Company Act is amended by 
20changing Section 50-10 as follows:



21 (805 ILCS 180/50-10)



22 (Text of Section before amendment by P.A. 99-637)

23 Sec. 50-10. Fees. 

24 (a) The Secretary of State shall charge and collect in

 
 
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1accordance with the provisions of this Act and rules

2promulgated under its authority all of the following:

3  (1) Fees for filing documents.

4  (2) Miscellaneous charges.

5  (3) Fees for the sale of lists of filings and for 
6 copies
of any documents.

7 (b) The Secretary of State shall charge and collect for
all 
8of the following:

9  (1) Filing articles of organization (domestic), 
10 application for
admission (foreign), and restated articles 
11 of
organization (domestic), $39 $500. Notwithstanding the 
12 foregoing, the fee for filing articles of organization 
13 (domestic), application for admission (foreign), and 
14 restated articles of organization (domestic) in connection 
15 with a limited liability company with ability to establish 
16 series pursuant to Section 37-40 of this Act is $59 $750.


17  (2) Filing articles of amendment or an amended 
18 application for admission, $150.

19  (3) Filing articles of dissolution or
application
for 
20 withdrawal, $100.

21  (4) Filing an application to reserve a name, $300.

22  (5) Filing a notice of cancellation of a reserved name, 
23 $100.

24  (6) Filing a notice of a transfer of a reserved
name, 
25 $100.

26  (7) Registration of a name, $300.

 
 
10000SB0009ham001- 44 -LRB100 06347 HLH 27036 a


1  (8) Renewal of registration of a name, $100.

2  (9) Filing an application for use of an assumed
name 
3 under Section 1-20 of this Act, $150 for each
year or part 
4 thereof ending in 0 or 5, $120 for each year or
part 
5 thereof ending in 1 or 6, $90 for each year or part thereof 
6 ending in 2 or
7, $60 for each year or part thereof ending 
7 in 3 or 8, $30 for each year or
part thereof ending in 4 or 
8 9, and a renewal for each assumed name, $150.

9  (10) Filing an application for change or cancellation 
10 of an assumed
name, $100.

11  (11) Filing an annual report of a limited liability

12 company or foreign limited liability company, $250, if

13 filed as required by this Act, plus a penalty if

14 delinquent. Notwithstanding the foregoing, the fee for 
15 filing an annual report of a limited liability company or 
16 foreign limited liability company with ability to 
17 establish series is $250 plus $50 for each series for which 
18 a certificate of designation has been filed pursuant to 
19 Section 37-40 of this Act and active on the last day of the 
20 third month preceding the company's anniversary month, 
21 plus a penalty if delinquent.


22  (12) Filing an application for reinstatement of a

23 limited liability company or foreign limited liability

24 company
$500.

25  (13) Filing Articles of Merger, $100 plus $50 for each 
26 party to the
merger in excess of the first 2 parties.

 
 
10000SB0009ham001- 45 -LRB100 06347 HLH 27036 a


1  (14) Filing an Agreement of Conversion or Statement of 
2 Conversion, $100.

3  (15) Filing a statement of change of address of 
4 registered office or change of registered agent, or both, 
5 or filing a statement of correction, $25.

6  (16) Filing a petition for refund, $15.

7  (17) Filing any other document, $100.

8  (18) Filing a certificate of designation of a limited 
9 liability company with the ability to establish series 
10 pursuant to Section 37-40 of this Act, $50.

11 (c) The Secretary of State shall charge and collect all
of 
12the following:

13  (1) For furnishing a copy or certified copy of any

14 document, instrument, or paper relating to a limited

15 liability company or foreign limited liability company,
or 
16 for a certificate, $25.

17  (2) For the transfer of information by computer
process 
18 media to any purchaser, fees established by
rule.

19(Source: P.A. 97-839, eff. 7-20-12.)


20 (Text of Section after amendment by P.A. 99-637)

21 Sec. 50-10. Fees. 

22 (a) The Secretary of State shall charge and collect in

23accordance with the provisions of this Act and rules

24promulgated under its authority all of the following:

25  (1) Fees for filing documents.

 
 
10000SB0009ham001- 46 -LRB100 06347 HLH 27036 a


1  (2) Miscellaneous charges.

2  (3) Fees for the sale of lists of filings and for 
3 copies
of any documents.

4 (b) The Secretary of State shall charge and collect for
all 
5of the following:

6  (1) Filing articles of organization (domestic), 
7 application for
admission (foreign), and restated articles 
8 of
organization (domestic), $39 $500. Notwithstanding the 
9 foregoing, the fee for filing articles of organization 
10 (domestic), application for admission (foreign), and 
11 restated articles of organization (domestic) in connection 
12 with a limited liability company with a series or the 
13 ability to establish a series pursuant to Section 37-40 of 
14 this Act is $59 $750.


15  (2) Filing amendments (domestic or foreign), $150.

16  (3) Filing a statement of termination or
application

17 for withdrawal, $25.

18  (4) Filing an application to reserve a name, $300.

19  (5) Filing a notice of cancellation of a reserved name, 
20 $100.

21  (6) Filing a notice of a transfer of a reserved
name, 
22 $100.

23  (7) Registration of a name, $300.

24  (8) Renewal of registration of a name, $100.

25  (9) Filing an application for use of an assumed
name 
26 under Section 1-20 of this Act, $150 for each
year or part 
 
 
10000SB0009ham001- 47 -LRB100 06347 HLH 27036 a


1 thereof ending in 0 or 5, $120 for each year or
part 
2 thereof ending in 1 or 6, $90 for each year or part thereof 
3 ending in 2 or
7, $60 for each year or part thereof ending 
4 in 3 or 8, $30 for each year or
part thereof ending in 4 or 
5 9, and a renewal for each assumed name, $150.

6  (10) Filing an application for change or cancellation 
7 of an assumed
name, $100.

8  (11) Filing an annual report of a limited liability

9 company or foreign limited liability company, $250, if

10 filed as required by this Act, plus a penalty if

11 delinquent. Notwithstanding the foregoing, the fee for 
12 filing an annual report of a limited liability company or 
13 foreign limited liability company is $250 plus $50 for each 
14 series for which a certificate of designation has been 
15 filed pursuant to Section 37-40 of this Act and is in 
16 effect on the last day of the third month preceding the 
17 company's anniversary month, plus a penalty if delinquent.


18  (12) Filing an application for reinstatement of a

19 limited liability company or foreign limited liability

20 company
$500.

21  (13) Filing articles of merger, $100 plus $50 for each 
22 party to the
merger in excess of the first 2 parties.

23  (14) Filing articles of conversion, $100.

24  (15) Filing a statement of change of address of 
25 registered office or change of registered agent, or both, 
26 or filing a statement of correction, $25.

 
 
10000SB0009ham001- 48 -LRB100 06347 HLH 27036 a


1  (16) Filing a petition for refund, $15.

2  (17) Filing a certificate of designation of a limited 
3 liability company with a series pursuant to Section 37-40 
4 of this Act, $50.
5  (18) Filing articles of domestication, $100.
6  (19) Filing, amending, or cancelling a statement of 
7 authority, $50.
8  (20) Filing, amending, or cancelling a statement of 
9 denial, $10. 
10  (21) Filing any other document, $100.

11 (c) The Secretary of State shall charge and collect all
of 
12the following:

13  (1) For furnishing a copy or certified copy of any

14 document, instrument, or paper relating to a limited

15 liability company or foreign limited liability company,
or 
16 for a certificate, $25.

17  (2) For the transfer of information by computer
process 
18 media to any purchaser, fees established by
rule.

19(Source: P.A. 99-637, eff. 7-1-17.)


20 Section 95. No acceleration or delay. Where this Act makes 
21changes in a statute that is represented in this Act by text 
22that is not yet or no longer in effect (for example, a Section 
23represented by multiple versions), the use of that text does 
24not accelerate or delay the taking effect of (i) the changes 
25made by this Act or (ii) provisions derived from any other 
 
 
10000SB0009ham001- 49 -LRB100 06347 HLH 27036 a


1Public Act.


2 Section 99. Effective date. This Act takes effect upon 
3becoming law.".