IL HB1542

Amends the Principal and Income Act to exclude oil and gas from non-coal formations from the depletion allowance provisions that apply to other natural resources.

For oil or gas from non-coal formations in nontrust estates only, proceeds from sale of such minerals received as royalty, overriding royalty, limited royalty, working interest, net profit interest, or lease bonus are designated as income.

Applies new allocation methods for depletable property acquired after the effective date of the act, while allowing existing properties held at the time of enactment to continue using the prior allocation method.

Establishes that Section 15 of the Principal and Income Act does not apply to life estates and remainder interests in oil or gas from non-coal formations or royalties created under leases of such minerals.