HB3086 Summary

• Amends the Illinois Income Tax Act to add a new definition of "captive real estate investment trust" (REIT) for tax purposes, effective for taxable years ending on or after August 16, 2007.

• Defines a captive REIT as a real estate investment trust where more than 50% of voting power or value is owned by a single corporation, excluding certain publicly-traded REITs and tax-exempt entities.

• Provides exceptions to the captive REIT definition for entities owned by non-captive REITs, tax-exempt organizations, listed Australian property trusts, and certain foreign entities meeting specific criteria.

• Clarifies that voting power held by life insurance companies in segregated asset accounts for the benefit of tax-exempt entities is excluded from determining captive REIT status for taxable years ending on or after August 16, 2007.

• Makes technical amendments to the definition section of the Illinois Income Tax Act regarding financial organizations, investment partnerships, and unitary business groups.