SB3422 Summary

• Amends the Illinois Income Tax Act to establish how gains or losses on dispositions of partnership interests by nonresidents are apportioned to Illinois by multiplying total gain or loss by the partnership's apportionment factor for the year of sale.

• Applies the same apportionment method to nonresident beneficiaries disposing of interests in trusts, using the trust's apportionment factor determined under Section 304.

• Applies the same apportionment method to nonresident shareholders disposing of stock in Subchapter S corporations, using the corporation's apportionment factor determined under Section 304.

• Clarifies that investment partnership income distributed to nonresident partners is treated as nonbusiness income allocated to the partner's state of residence, unless certain conditions apply relating to business activity or working capital connections in Illinois.