ILCS » Chapter 35 · Act 5
Illinois Compiled Statutes

35 ILCS 5/205 (2026)

Exempt organizations

✓ current as of May 2026
Find cases: SyfertCases citing this section IL-ILGAilga.gov JustiaChapter on Justia CornellLII Search CasesGoogle Scholar
(35 ILCS 5/205) (from Ch. 120, par. 2-205)
    Sec. 205. Exempt organizations.
    (a) Charitable, etc. organizations. For tax years beginning before January 1, 2019, the base income of an organization which is exempt from the federal income tax by reason of the Internal Revenue Code shall not be determined under section 203 of this Act, but shall be its unrelated business taxable income as determined under section 512 of the Internal Revenue Code, without any deduction for the tax imposed by this Act. The standard exemption provided by section 204 of this Act shall not be allowed in determining the net income of an organization to which this subsection applies.
    For tax years beginning on or after January 1, 2019, the base income of an organization which is exempt from the federal income tax by reason of the Internal Revenue Code shall not be determined under Section 203 of this Act, but shall be its unrelated business taxable income as determined under Section 512 of the Internal Revenue Code, without regard to Section 512(a)(7) of the Internal Revenue Code and without any deduction for the tax imposed by this Act. The standard exemption provided by Section 204 of this Act shall not be allowed in determining the net income of an organization to which this subsection applies. This exclusion is exempt from the provisions of Section 250.
    (b) Partnerships. A partnership as such shall not be subject to the tax imposed by subsection 201 (a) and (b) of this Act, but shall be subject to the replacement tax imposed by subsection 201 (c) and (d) of this Act and shall compute its base income as described in subsection (d) of Section 203 of this Act. For taxable years ending on or after December 31, 2004, an investment partnership, as defined in Section 1501(a)(11.5) of this Act, shall not be subject to the tax imposed by subsections (c) and (d) of Section 201 of this Act. A partnership shall file such returns and other information at such time and in such manner as may be required under Article 5 of this Act. The partners in a partnership shall be liable for the replacement tax imposed by subsection 201 (c) and (d) of this Act on such partnership, to the extent such tax is not paid by the partnership, as provided under the laws of Illinois governing the liability of partners for the obligations of a partnership. Persons carrying on business as partners shall be liable for the tax imposed by subsection 201 (a) and (b) of this Act only in their separate or individual capacities.
    (c) Subchapter S corporations. A Subchapter S corporation shall not be subject to the tax imposed by subsection 201 (a) and (b) of this Act but shall be subject to the replacement tax imposed by subsection 201 (c) and (d) of this Act and shall file such returns and other information at such time and in such manner as may be required under Article 5 of this Act.
    (d) Combat zone, terrorist attack, and certain other deaths. An individual relieved from the federal income tax for any taxable year by reason of section 692 of the Internal Revenue Code shall not be subject to the tax imposed by this Act for such taxable year.
    (e) Certain trusts. A common trust fund described in Section 584 of the Internal Revenue Code, and any other trust to the extent that the grantor is treated as the owner thereof under sections 671 through 678 of the Internal Revenue Code shall not be subject to the tax imposed by this Act.
    (f) Certain business activities. A person not otherwise subject to the tax imposed by this Act shall not become subject to the tax imposed by this Act by reason of:
        (1) that person's ownership of tangible personal
    
property located at the premises of a printer in this State with which the person has contracted for printing, or
        (2) activities of the person's employees or agents
    
located solely at the premises of a printer and related to quality control, distribution, or printing services performed by a printer in the State with which the person has contracted for printing.
    (g) A nonprofit risk organization that holds a certificate of authority under Article VIID of the Illinois Insurance Code is exempt from the tax imposed under this Act with respect to its activities or operations in furtherance of the powers conferred upon it under that Article VIID of the Illinois Insurance Code.
(Source: P.A. 101-545, eff. 8-23-19.)

    
Notes of Decisions
Cited in 7 cases, 2001–2018 · leading case: Caveney v. Bower, 797 N.E.2d 596 (Ill. 2003).
Sort: Relevance Newest Treatment
Caveney v. Bower, 797 N.E.2d 596 (Ill. 2003). · cites it 2× “See 35 ILCS 5/205(c) (West 2000). By the same token, plaintiffs are ineligible for the credit because, although they are subject to the Illinois income tax, they did not personally incur the expenses.”
Repub. Bancorp Co. v. Beard, 2018 IL App (2d) 170350 (Ill. App. Ct. 2018). · cites it 10× “If anything, the fact that partnerships are not subject to the income tax but are subject to the replacement tax ( 35 ILCS 5/205(b) (West 2016) ), and subchapter S corporations are not subject to the income tax but are subject to the replacement tax ( id.”
Repub. Bancorp Co. v. Beard, 2018 IL App (2d) 170350 (Ill. App. Ct. 2018). · cites it 7× “§ 1361 (2012); 35 ILCS 5/205(c) (West 2016). It is also a family-operated bank, headquartered in Oak Brook, and serving the Chicago area since 1964.”
Magee v. Boyd, 175 So. 3d 79 (Ala. 2015). “Giving the term such a meaning may *126 have broad implications for other tax credits, deductions, and exemptions from taxation, such as the property tax exemption for property used exclusively for religious purposes (35 ILCS 200/15-40 (West 1998)) and the partial state income…”
Toney v. Bower, 744 N.E.2d 351 (Ill. App. Ct. 2001). “Giving the term such a meaning may have broad implications for other tax credits, deductions, and exemptions from taxation, such as the property tax exemption for property used exclusively for religious purposes (35 ILCS 200/15 — 40 (West 1998)) and the partial state income tax…”
Caveney v. Bower (Ill. 2003). “See 35 ILCS 5/205(c) (West 2000). By the same token, plaintiffs are ineligible for the credit because, although they are subject to the Illinois income tax, they did not personally incur the expenses.”
Toney v. Bower (Ill. App. Ct. 2001). “Giving the term such a meaning may have broad implications for other tax credits, deductions, and exemptions from taxation, such as the property tax exemption for property used exclusively for religious purposes (35 ILCS 200/15-40 (West 1998)) and the partial state income tax…”
— 35 ILCS 5/205(a) — 3 cases
Magee v. Boyd, 175 So. 3d 79 (Ala. 2015). “Giving the term such a meaning may *126 have broad implications for other tax credits, deductions, and exemptions from taxation, such as the property tax exemption for property used exclusively for religious purposes (35 ILCS 200/15-40 (West 1998)) and the partial state income…”
Toney v. Bower, 744 N.E.2d 351 (Ill. App. Ct. 2001). “Giving the term such a meaning may have broad implications for other tax credits, deductions, and exemptions from taxation, such as the property tax exemption for property used exclusively for religious purposes (35 ILCS 200/15 — 40 (West 1998)) and the partial state income tax…”
Toney v. Bower (Ill. App. Ct. 2001). “Giving the term such a meaning may have broad implications for other tax credits, deductions, and exemptions from taxation, such as the property tax exemption for property used exclusively for religious purposes (35 ILCS 200/15-40 (West 1998)) and the partial state income tax…”
— 35 ILCS 5/205(b) — 1 case
Repub. Bancorp Co. v. Beard, 2018 IL App (2d) 170350 (Ill. App. Ct. 2018). “If anything, the fact that partnerships are not subject to the income tax but are subject to the replacement tax ( 35 ILCS 5/205(b) (West 2016) ), and subchapter S corporations are not subject to the income tax but are subject to the replacement tax ( id.”
— 35 ILCS 5/205(c) — 4 cases
Caveney v. Bower, 797 N.E.2d 596 (Ill. 2003). “See 35 ILCS 5/205(c) (West 2000). By the same token, plaintiffs are ineligible for the credit because, although they are subject to the Illinois income tax, they did not personally incur the expenses.”
Repub. Bancorp Co. v. Beard, 2018 IL App (2d) 170350 (Ill. App. Ct. 2018). “If anything, the fact that partnerships are not subject to the income tax but are subject to the replacement tax ( 35 ILCS 5/205(b) (West 2016) ), and subchapter S corporations are not subject to the income tax but are subject to the replacement tax ( id.”
Repub. Bancorp Co. v. Beard, 2018 IL App (2d) 170350 (Ill. App. Ct. 2018). “§ 1361 (2012); 35 ILCS 5/205(c) (West 2016). It is also a family-operated bank, headquartered in Oak Brook, and serving the Chicago area since 1964.”
Caveney v. Bower (Ill. 2003). “See 35 ILCS 5/205(c) (West 2000). By the same token, plaintiffs are ineligible for the credit because, although they are subject to the Illinois income tax, they did not personally incur the expenses.”
— 35 ILCS 5/205(e) — 2 cases
Repub. Bancorp Co. v. Beard, 2018 IL App (2d) 170350 (Ill. App. Ct. 2018). “If anything, the fact that partnerships are not subject to the income tax but are subject to the replacement tax ( 35 ILCS 5/205(b) (West 2016) ), and subchapter S corporations are not subject to the income tax but are subject to the replacement tax ( id.”
Repub. Bancorp Co. v. Beard, 2018 IL App (2d) 170350 (Ill. App. Ct. 2018). “§ 1361 (2012); 35 ILCS 5/205(c) (West 2016). It is also a family-operated bank, headquartered in Oak Brook, and serving the Chicago area since 1964.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.