What is the dividend deduction?

 

 

The Illinois Income Tax Act 35 ILCS 5/203 provides that taxpayers may deduct from their taxable income an amount equal to those dividends which were paid to them by a corporation which conducts substantially all of its operations in an enterprise zone or zones.

Can dividends from companies like Commonwealth Edison be deducted?

 

 

No. The firm must conduct substantially all of its operations within a zone or zones, and firms with locations throughout the state (such as Commonwealth Edison, GTE, Pioneer, AT&T, Sears, Occidental Petroleum, etc.) do not fit this definition.

Who is an eligible taxpayer?

 

 

Individuals, corporations, partnerships, trusts and estates are eligible to take the dividend deduction on their Illinois income tax returns.

Which dividends may be subtracted?

 

 

Only dividends paid on or after the date of the zone certification or before the last day of your taxable year may be deducted.

Is there a list of companies doing substantially all of their business in enterprise zones?

 

 

No. Corporations must be contacted directly to verify their eligibility.