SB1880 Bill Summary

• Amends the Illinois Income Tax Act Section 1501 to redefine "captive real estate investment trust" (REIT) with specific ownership and trading requirements, excluding certain REITs owned by other REITs, tax-exempt entities, and foreign trusts meeting specific criteria.

• Expands the definition of "investment partnership" for tax years ending on or after January 1, 2023 to include distributive shares of partnership income from lower-tier partnership interests and income from partnerships operating at a federal taxable loss.

• Adds a new category of "qualifying investment securities" effective for tax years ending on or after January 1, 2023, to include certain partnership interests that qualify as securities under federal law (Subchapter 77b of Chapter 2A of Title 15 of the United States Code).

• Modifies investment partnership income calculation to exclude income from partnerships operating at a federal taxable loss when determining the 90% gross income threshold requirement.

• Takes effect upon becoming law.