Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart D - ILLINOIS NET LOSS DEDUCTIONS FOR LOSSES OCCURRING ON OR AFTER DECEMBER 31, 1986 › Section 100.2330 - Illinois Net Loss Carrybacks and Net Loss Carryovers for Losses Occurring On or After December 31, 1986 (IITA Section 207)

Current through Register Vol. 48, No. 28, July 12, 2024
a) IITA Section 207(a) provides for carryover
				deductions of any losses that result
after applying all of the
				modifications provided for in Section 203(b)(2), (c)(2) and (d)(2) and the
				allocation and apportionment provisions of Article 3 of
the
Act.
b) Years to
				Which Illinois Net Losses May be Carried
1) In
				General. Under IITA Section 207(a)(2), an Illinois net loss incurred in a tax
				year ending on or after December 31, 1999 and prior to December 31, 2003 may be
				carried back to the two preceding tax years or carried forward to the 20
				succeeding tax years. Under IITA Section 207(a)(3)-(4), for any taxable year
				ending on or after December 31, 2003 and prior to December 31, 2021, the loss
				is allowed as a carryover to each of the 12 taxable years following the taxable
				year of the loss, provided that any such loss not having yet expired as of
				November 16, 2021, the effective date of Public Act 102-0669, shall be allowed
				as a carryover to each of the 20 taxable years following the taxable year of
				the loss. For any taxable year ending on or after December 31, 2021, the loss
				is allowed as a carryover to each of the 20 taxable years following the taxable
				year of the loss. For tax years ending prior to December 31, 1999, IITA Section
				207(a)(1) provides that a carryback or carryover deduction is allowed in the
				manner allowed under Internal Revenue Code section 172. The federal rules
				concerning the years to which a loss may be carried are contained in IRC
				section 172(b) and in Treas. Reg. Sec.
				1.172 -4(a)(1). These rules, as
				now in effect or hereafter amended, are followed for Illinois income tax
				purposes and apply to corporations, partnerships, trusts and estates. In
				general, for Illinois net losses incurred in tax years beginning prior to
				August 6, 1997, the net loss is first carried back to the three preceding
				taxable years and then is carried over to the 15 succeeding taxable years. For
				Illinois net losses incurred in tax years beginning on or after August 6, 1997
				and ending prior to December 31, 1999, the loss generally is first carried back
				to the two preceding tax years and then is carried forward to the 20 succeeding
				tax years. In taxable years ending prior to December 31, 1999, special
				provisions applied to regulated transportation companies, financial
				institutions, product liability losses and other entities or situations, and
				the provisions in IRC section 172(b) and the related Treasury Regulations
				relating to the years to which a loss incurred in one of those years may be
				carried are followed.
2) Specific
				Rules for Losses Incurred in Taxable Years Ending Prior to December 31, 1999.
				IITA Section 207(a)(1) provides that, for losses incurred in
any
				taxable year ending prior to December 31, 1999, the loss is allowed as a
				carryover or carryback deduction in the manner allowed under IRC section
				172.
Pursuant to this provision:
A)
				For losses incurred in taxable years beginning prior to August 6, 1997, a loss
				generally is first carried back to each of the 3 taxable years preceding the
				taxable year in which the loss was incurred and then to each of the 15 taxable
				years following the taxable year in which the loss was incurred. (From IRC
				section 172(b)(1)(A), as in effect prior to enactment of
				P.L.
				105-34.)
B) For losses incurred in taxable years
				beginning after August 5, 1997, a loss generally is first carried back to each
				of the 2 taxable years preceding the taxable year in which the loss was
				incurred and then to each of the 20 taxable years following the taxable year in
				which the loss was incurred. (From IRC section 172(b)(1)(A), as in effect after
				enactment of P.L.
				105-34.)
C) Special carryover periods allowed under
				IRC section 172(b) for specific kinds of losses or taxpayers also apply. For
				example:
i) "Specified liability losses" may
				be carried back to each of the 10 taxable years preceding the taxable year in
				which the loss was incurred. (From IRC section 172(b)(1)(C).)
ii) For losses incurred in taxable years
				beginning after December 31, 1986, and ending before January 1, 1994, bad debt
				losses of commercial banks may be carried back to each of the 10 taxable years
				preceding the taxable year in which the loss was incurred and to each of the 5
				taxable years following the taxable year in which the loss was incurred. (From
				IRC section 172(b)(1)(D).)