Bill Text: IL SB0110 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Restores a net loss carryover deduction for taxable years ending after December 31, 2010 and prior to December 31, 2014. Effective immediately.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Failed) 2013-01-08 - Session Sine Die [SB0110 Detail]

Download: Illinois-2011-SB0110-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 SB0110 Introduced 1/27/2011, by Sen. Kirk W. Dillard SYNOPSIS AS INTRODUCED:
35 ILCS 5/207 from Ch. 120, par. 2-207
Amends the Illinois Income Tax Act. Restores a net loss carryover deduction for taxable years ending after December 31, 2010 and prior to December 31, 2014. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Income Tax Act is amended by
changing Section 207 as follows:
(35 ILCS 5/207) (from Ch. 120, par. 2-207)
Sec. 207. Net Losses.
(a) If after applying all of the (i) modifications provided
for in paragraph (2) of Section 203(b), paragraph (2) of
Section 203(c) and paragraph (2) of Section 203(d) and (ii) the
allocation and apportionment provisions of Article 3 of this
Act and subsection (c) of this Section, the taxpayer's net
income results in a loss;
(1) for any taxable year ending prior to December 31,
1999, such loss shall be allowed as a carryover or
carryback deduction in the manner allowed under Section 172
of the Internal Revenue Code;
(2) for any taxable year ending on or after December
31, 1999 and prior to December 31, 2003, such loss shall be
allowed as a carryback to each of the 2 taxable years
preceding the taxable year of such loss and shall be a net
operating loss carryover to each of the 20 taxable years
following the taxable year of such loss; and

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(3) for any taxable year ending on or after December
31, 2003, such loss shall be allowed as a net operating
loss carryover to each of the 12 taxable years following
the taxable year of such loss, except as provided in
subsection (d).
(a-5) Election to relinquish carryback and order of
application of losses.
(A) For losses incurred in tax years ending prior
to December 31, 2003, the taxpayer may elect to
relinquish the entire carryback period with respect to
such loss. Such election shall be made in the form and
manner prescribed by the Department and shall be made
by the due date (including extensions of time) for
filing the taxpayer's return for the taxable year in
which such loss is incurred, and such election, once
made, shall be irrevocable.
(B) The entire amount of such loss shall be carried
to the earliest taxable year to which such loss may be
carried. The amount of such loss which shall be carried
to each of the other taxable years shall be the excess,
if any, of the amount of such loss over the sum of the
deductions for carryback or carryover of such loss
allowable for each of the prior taxable years to which
such loss may be carried.
(b) Any loss determined under subsection (a) of this
Section must be carried back or carried forward in the same

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manner for purposes of subsections (a) and (b) of Section 201
of this Act as for purposes of subsections (c) and (d) of
Section 201 of this Act.
(c) Notwithstanding any other provision of this Act, for
each taxable year ending on or after December 31, 2008, for
purposes of computing the loss for the taxable year under
subsection (a) of this Section and the deduction taken into
account for the taxable year for a net operating loss carryover
under paragraphs (1), (2), and (3) of subsection (a) of this
Section, the loss and net operating loss carryover shall be
reduced in an amount equal to the reduction to the net
operating loss and net operating loss carryover to the taxable
year, respectively, required under Section 108(b)(2)(A) of the
Internal Revenue Code, multiplied by a fraction, the numerator
of which is the amount of discharge of indebtedness income that
is excluded from gross income for the taxable year (but only if
the taxable year ends on or after December 31, 2008) under
Section 108(a) of the Internal Revenue Code and that would have
been allocated and apportioned to this State under Article 3 of
this Act but for that exclusion, and the denominator of which
is the total amount of discharge of indebtedness income
excluded from gross income under Section 108(a) of the Internal
Revenue Code for the taxable year. The reduction required under
this subsection (c) shall be made after the determination of
Illinois net income for the taxable year in which the
indebtedness is discharged.

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(d) In the case of a corporation (other than a Subchapter S
corporation), no carryover deduction shall be allowed under
this Section for any taxable year ending after December 31,
2010 and prior to December 31, 2014; provided that, for
purposes of determining the taxable years to which a net loss
may be carried under subsection (a) of this Section, no taxable
year for which a deduction is disallowed under this subsection
shall be counted.
(Source: P.A. 95-233, eff. 8-16-07; 96-1496, eff. 1-13-11.)
Section 99. Effective date. This Act takes effect upon
becoming law.