SB3526 Summary

• Amends the Illinois Income Tax Act Section 304 regarding business income apportionment for non-residents, specifically modifying provisions related to transportation company definitions and services.

• Clarifies that "transportation company" includes persons primarily engaged in movement of freight or passengers by air, land, or water, or movement of liquid/gaseous substances by pipeline, plus incidental services.

• Expands definition of incidental services for transportation companies to include in-transit food/beverage sales, switching, demurrage, warehousing (railroads); in-flight services and reservations (airlines); packing/warehousing and leasing arrangements (trucking); and freight forwarding services.

• Adds new subsection (c-1) for federally regulated exchanges (effective December 31, 2012), allowing optional apportionment based on business income from sources within Illinois with specified percentage allocations for transaction types.

• Includes members of unitary business groups providing services incidental to transportation as "transportation companies" for apportionment purposes.