HB3478 Summary

• Amends the Illinois Income Tax Act to add definitions for "GILTI" (Global Intangible Low-Taxed Income) under Internal Revenue Code Section 951A and "Subpart F" income under Section 952 of the Internal Revenue Code.

• Defines GILTI as income deemed received under Section 951A but not reduced by the federal Section 250 deduction, calculated without regard to the "high tax exclusion" election under Treasury Regulation 1.951A-2(c)(7).

• Modifies Section 203 (base income deductions) and Section 1501 (definitions) of the Illinois Income Tax Act to establish rules for how these types of foreign corporate income are treated for Illinois income tax purposes.

• Applies these provisions to determine the deduction of amounts included in a taxpayer's federal adjusted gross income relating to global intangible low-taxed income and controlled foreign corporation income.