Part 100: INCOME TAX

Section 100.2060 Compassionate Use of Medical Cannabis Pilot Program Act Surcharge (IITA Section 201(o)) a) In general. For each taxable year beginning or ending during the Compassionate Use of Medical Cannabis Pilot Program, a surcharge is imposed on all taxpayers on income aris…

Section 100.2100 Replacement Tax Investment Credit Prior to January 1, 1994 (IITA 201(e)) a) Scope of this Section. Hereinafter, unless specifically provided otherwise the term "investment credit" refers to the credit against the Personal Property Tax Replacement Income Tax provi…

Section 100.2101 Replacement Tax Investment Credit (IITA 201(e)) a) A taxpayer shall be allowed a credit against the Personal Property Replacement Income Tax for investment in qualified property ("the investment credit"). The qualified property must be used in Illinois by a taxpa…

Section 100.2110 Economic Development for a Growing Economy Credit (IITA Section 211) a) For tax years beginning on or after January 1, 1999, a taxpayer who has entered into an Agreement (including for tax years beginning on or after January 1, 2021, a New Construction EDGE Agree…

Section 100.2111 REV Tax Credit (IITA Section 236) a) For tax years beginning on or after January 1, 2025, a taxpayer who has entered into an Agreement with the Department of Commerce and Economic Opportunity (DCEO) under the Reimagining Energy and Vehicles in Illinois Act [20 IL…

Section 100.2112 MICRO Tax Credit (IITA Section 238) a) For tax years beginning on or after January 1, 2025, a taxpayer who has entered into an Agreement with the Department of Commerce and Economic Opportunity (DCEO) under the Manufacturing Illinois Chips for Real Opportunity (M…

Section 100.2120 Jobs Tax Credit; Enterprise Zone, Foreign Trade Zone or Sub-Zone and River Edge Redevelopment Zone (IITA Section 201(g)) a) A taxpayer conducting a trade or business in an enterprise zone, or a High Impact Business designated by the Department of Commerce and Eco…

Section 100.2130 Investment Credit; High Impact Business (IITA 201(h)) a) Subject to the minimum investment requirements of Section 5.5 of the Illinois Enterprise Zone Act, a taxpayer shall be allowed a credit against the tax imposed by IITA Sections 201(a) and (b) for investment…

Section 100.2131 Investment Credit; Enterprise Zone and River Edge Redevelopment Zone (IITA Section 201(f)) a) A taxpayer shall be allowed a credit against the tax imposed by IITA Section 201(a) and (b) for investment in qualified property placed in service in an enterprise zone …

Section 100.2135 REV Illinois Investment Tax Credit (IITA Section 237) a) For tax years beginning on or after November 16, 2021, a taxpayer shall be allowed a credit against the tax imposed by IITA Section 201 (a) and (b) for investment in qualified property which is placed in se…

Section 100.2136 MICRO Investment Tax Credit (IITA Section 239) a) For tax years beginning on or after January 1, 2025, a taxpayer shall be allowed a credit against the tax imposed by IITA Section 201(a) and (b) for investment in qualified property which is placed in service at t…

Section 100.2140 Credit Against Income Tax for Replacement Tax (IITA 201(i)) a) Section 201(c) imposes the Personal Property Tax Replacement Income Tax. This tax is measured by net income of every corporation (including Sub-chapter S corporations), partnership and trust, for each…

Section 100.2150 Training Expense Credit (IITA 201(j)) a) Beginning with tax years ending on or after December 31, 1986 and prior to December 31, 2003, a taxpayer shall be allowed a credit against the tax imposed by IITA Sections 201(a) and (b) for all amounts paid or accrued, on…

Section 100.2160 Research and Development Credit (IITA Section 201(k)) a) For tax years ending after July 1, 1990 and prior to December 31, 2003, and tax years ending on or after December 31, 2004 and prior to January 1, 2027, each taxpayer shall be allowed a credit against the t…

Section 100.2161 Quantum Computing Campuses Tax Credit (IITA Section 241) a) For tax years ending on or after June 26, 2024 (the effective date of Public Act 103-0595), each taxpayer who has been awarded a credit by the Department of Commerce and Economic Opportunity (DCEO) is al…

Section 100.2163 Environmental Remediation Credit (IITA 201(l)) a) For tax years ending after December 31, 1997, and on or before December 31, 2001, a taxpayer shall be allowed a credit against the tax imposed by IITA Section 201(a) and (b) for unreimbursed environmental remediat…

Section 100.2164 Data Center Construction Employment Tax Credit (IITA Section 229) a) For taxable years beginning on or after January 1, 2019, a taxpayer who has been awarded a credit by the Department of Commerce and Economic Opportunity (DCEO) under Section 605-1025(b) of the D…

Section 100.2165 Education Expense Credit (IITA 201(m)) a) Beginning with tax years ending after December 31, 1999, a taxpayer who is the custodian of one or more qualifying pupils shall be allowed a credit against the tax imposed by IITA Section 201(a) and (b) for qualified educ…

Section 100.2170 Tax Credits for Coal Research and Coal Utilization Equipment (IITA 206) a) Until January 1, 2005, each corporation subject to the Illinois Income Tax Act shall be entitled to a credit against the tax imposed under IITA Sections 201(a) and (b) in an amount equal t…

Section 100.2171 Angel Investment Credit (IITA 220) a) For taxable years beginning on and after January 1, 2011, and ending on or before December 31, 2026, a claimant (as defined under 14 Ill. Adm. Code 531.20) may claim a credit against the tax imposed under IITA Sections 201(a)…

Section 100.2175 Invest in Kids Credit (IITA 224) a) For taxable years beginning on and after January 1, 2018, and ending before January 1, 2023, a taxpayer may claim a credit against the income tax imposed under IITA Section 201(a) and (b) in an amount equal to 75% of the qualif…

Section 100.2179 Volunteer Emergency Worker Credit (IITA Section 234) a) For taxable years beginning on or after January 1, 2023, and beginning before January 1, 2028, a taxpayer shall be allowed a credit against the tax imposed by subsections (a) and (b) of Section 201 of the Il…

Section 100.2180 Credit for Residential Real Property Taxes (IITA 208) a) Beginning with tax years ending on or after December 31, 1991, every individual taxpayer shall be entitled to a tax credit equal to 5% of real property taxes paid by the taxpayer during the taxable year on …

Section 100.2181 Credit for Instructional Materials and Supplies. (IITA Section 225) a) For taxable years beginning on and after January 1, 2017, a taxpayer shall be allowed a credit in the amount paid by the taxpayer during the taxable year for instructional materials and suppli…

Section 100.2185 Film Production Services Credit (IITA Section 213) a) For taxable years beginning on or after January 1, 2004, and prior to January 1, 2027, a person awarded a credit under the Film Production Services Tax Credit Act of 2008 [35 ILCS 16] is entitled to a credit a…

Section 100.2190 Tax Credit for Affordable Housing Donations (IITA Section 214) a) For tax years ending on or after December 31, 2001 and on or before December 31, 2026, a taxpayer who makes a donation under Section 7.28 of the Illinois Housing Development Act [20 ILCS 3805/7.28]…

Section 100.2193 Student-Assistance Contributions Credit (IITA 218) a) For taxable years ending on or after December 31, 2009 and on or before December 31, 2029, each taxpayer is allowed a credit against the taxes imposed under IITA Section 201(a) and (b) in an amount equal to 25…

Section 100.2195 Dependent Care Assistance Program Tax Credit (IITA 210) a) Beginning with tax years ending on or after June 30, 1995, each taxpayer who is primarily engaged in manufacturing is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201…

Section 100.2196 Employee Child Care Assistance Program Tax Credit (IITA Section 210.5) a) Eligibility for Credit 1) Beginning with tax years ending on or after December 31, 2000, each corporate taxpayer is entitled to a credit against the tax imposed by subsections (a) and (b) o…

Section 100.2197 Foreign Tax Credit (IITA Section 601(b)(3)) a) IITA Section 601(b)(3) provides that the aggregate amount of tax which is imposed upon or measured by income and which is paid by a resident for a taxable year to another state or states on income which is also subje…

Section 100.2198 Economic Development for a Growing Economy Credit (IITA 211) (Renumbered) (Source: Section 100.2198 renumbered to Section 100.2110 at 49 Ill. Reg. 3115, effective February 26, 2025)

Section 100.2199 Illinois Earned Income Tax Credit (IITA Section 212) a) With respect to the federal earned income tax credit allowed for the taxable year under Section 32 of the federal Internal Revenue Code, each individual taxpayer shall be allowed a credit against the tax imp…

Section 100.2200 Net Operating Losses Occurring Prior to December 31, 1986, of Unitary Business Groups: Treatment by Members of the Unitary Business Group.(IITA Section 202) - Scope a) This section states rules for the allocation of net operating losses that were incurred in taxa…

Section 100.2210 Net Operating Losses Occurring Prior to December 31, 1986, of Unitary Business Groups: Treatment by Members of the Unitary Business Group (IITA Section 202) -- Definitions Federal taxable income for Illinois income tax purposes and Federal NOL for Illinois income…

Section 100.2220 Net Operating Losses Occurring Prior to December 31, 1986, of Unitary Business Groups: Treatment by Members of the Unitary Business Group. (IITA Section 202) – Current Net Operating Losses: Offsets Between Members The computation of combined federal taxable incom…

Section 100.2230 Net Operating Losses Occurring Prior to December 31, 1986, of Unitary Business Groups: Treatment by Members of the Unitary Business Group. (IITA Section 202) – Carrybacks and Carryforwards a) The Illinois income tax treatment of net operating loss carrybacks and …

Section 100.2240 Net Operating Losses Occurring Prior to December 31, 1986, of Unitary Business Groups: Treatment by Members of the Unitary Business Group: (IITA Section 202) – Effect of Combined Net Operating Loss in Computing Illinois Base Income a) For purposes of computing th…

Section 100.2250 Net Operating Losses Occurring Prior to December 31, 1986, of Unitary Business Groups: Treatment by Members of the Unitary Business Group: (IITA Section 202) – Deadline for Filing Claims Based on Net Operating Losses Carried Back From a Combined Apportionment Yea…

Section 100.2300 Illinois Net Loss Deduction for Losses Occurring On or After December 31, 1986 (IITA 207) a) In General - For taxable years ending on or after December 31, 1986, IITA Section 207 provides for computation of Illinois net losses for corporations (including Subchapt…

Section 100.2310 Computation of the Illinois Net Loss Deduction for Losses Occurring On or After December 31, 1986 (IITA 207) a) The amount of the Illinois net loss deduction allowed by IITA Section 207 for any taxable year is the aggregate of the Illinois net loss carryovers and…

Section 100.2320 Determination of the Amount of Illinois Net Loss for Losses Occurring On or After December 31, 1986 a) Add back of federal net operating loss deduction. The starting point in calculating Illinois net income or loss is taxable income. IITA Section 203(e)(1) provid…

Section 100.2330 Illinois Net Loss Carrybacks and Net Loss Carryovers for Losses Occurring On or After December 31, 1986 (IITA Section 207) a) IITA Section 207(a) provides for carryover deductions of any losses that result after applying all of the modifications provided for in S…

Section 100.2340 Illinois Net Losses and Illinois Net Loss Deductions for Losses Occurring On or After December 31, 1986, of Corporations that are Members of a Unitary Business Group: Separate Unitary Versus Combined Unitary Returns a) In general. IITA Section 502(f) allows corpo…

Section 100.2350 Illinois Net Losses and Illinois Net Loss Deductions, for Losses Occurring On or After December 31, 1986, of Corporations that are Members of a Unitary Business Group: Changes in Membership a) Member entering the group from a separate return year. IITA Section 20…

Section 100.2360 Illinois Net Losses and Illinois Net Loss Deductions for Losses of Cooperatives Occurring On or After December 31, 1986 (IITA Section 203(e)(2)(F)) a) Under Internal Revenue Code section 1382(b), cooperatives are allowed to deduct distributions of profits made to…

Section 100.2405 Gross Income, Adjusted Gross Income, Taxable Income and Base Income Defined; Double Deductions Prohibited; Legislative Intention (IITA Section 203(e), (g) and (h)) a) General Definitions. For the purposes of IITA Sections 203 and 803(e), and subject to the except…

Section 100.2410 Net Operating Loss Carryovers for Individuals, and Capital Loss and Other Carryovers for All Taxpayers (IITA Section 203) a) Scope. IITA Section 203 requires all taxpayers other than individuals to add back to their base income any carryover deduction taken in co…