35 ILCS 5/205
2021 Illinois Compiled Statutes|Chapter 35 - REVENUE|35 ILCS 5/ - Illinois Income Tax Act.|Article 2 - Tax Imposed

 (from Ch. 120, par. 2-205)Sec. 205. Exempt organizations.(a) Charitable, etc. organizations. For tax years beginning before January 1, 2019, the base income of an  organization which is exempt from the federal income tax by reason of the Internal Revenue Code shall not be determined  under section 203 of this Act, but shall be its unrelated business  taxable income as determined under section 512 of the Internal Revenue  Code, without any deduction for the tax imposed by this Act. The  standard exemption provided by section 204 of this Act shall not be  allowed in determining the net income of an organization to which this  subsection applies.For tax years beginning on or after January 1, 2019, the base income of an organization which is exempt from the federal income tax by reason of the Internal Revenue Code shall not be determined under Section 203 of this Act, but shall be its unrelated business taxable income as determined under Section 512 of the Internal Revenue Code, without regard to Section 512(a)(7) of the Internal Revenue Code and without any deduction for the tax imposed by this Act. The standard exemption provided by Section 204 of this Act shall not be allowed in determining the net income of an organization to which this subsection applies. This exclusion is exempt from the provisions of Section 250.(b) Partnerships.  A partnership as such shall not be subject to  the tax imposed by subsection 201 (a) and (b) of this Act, but shall be  subject to the replacement tax imposed by subsection 201 (c) and (d) of  this Act and shall compute its base income as described in subsection (d)  of Section 203 of this Act.  For taxable years ending on or after December 31, 2004, an investment partnership, as defined in Section 1501(a)(11.5) of this Act, shall not be subject to the tax imposed by subsections (c) and (d) of Section 201 of this Act.  A partnership shall file such returns and other  information at such  time and in such manner as may be required under Article 5 of this Act.  The partners in a partnership shall be liable for the replacement tax imposed  by subsection 201 (c) and (d) of this Act on such partnership, to the extent  such tax is not paid by the partnership, as provided under the laws of Illinois  governing the liability of partners for the obligations of a partnership.  Persons carrying on business as partners shall be liable for the tax  imposed by subsection 201 (a) and (b) of this Act only in their separate  or individual capacities.(c) Subchapter S corporations. A Subchapter S corporation shall not  be subject to the tax imposed by subsection 201 (a) and  (b) of this Act but shall be subject to the replacement tax imposed by subsection  201 (c) and (d) of this Act and shall file such returns  and other information  at such time and in such manner as may be required under Article 5 of this Act.(d) Combat zone, terrorist attack, and certain other deaths. An individual relieved from the federal  income tax for any taxable year by reason of section 692 of the Internal  Revenue Code shall not be subject to the tax imposed by this Act for  such taxable year.(e) Certain trusts. A common trust fund described in Section 584  of the Internal Revenue Code, and any other trust to the extent that the  grantor is treated as the owner thereof under sections 671 through 678  of the Internal Revenue Code shall not be subject to the tax imposed by  this Act.(f) Certain business activities. A person not otherwise subject to the tax  imposed by this Act shall not become subject to the tax imposed by this Act by  reason of:(1) that person's ownership of tangible personal     property located at the premises of a printer in this State with which the person has contracted for printing, or(2) activities of the person's employees or agents     located solely at the premises of a printer and related to quality control, distribution, or printing services performed by a printer in the State with which the person has contracted for printing.(g) A nonprofit risk organization that holds a certificate of authority under Article VIID of the Illinois Insurance Code is exempt from the tax imposed under this Act with respect to its activities or operations in furtherance of the powers conferred upon it under that Article VIID of the Illinois Insurance Code.  (Source: P.A. 101-545, eff. 8-23-19.)