§ 40. Bonds and notes; exemption from taxation. The creation of the Authority is in all respects for the benefit of the people of
Illinois and for the improvement of their health, safety, welfare, comfort, and security,
and its purposes are public purposes. In consideration thereof, the notes and bonds of the Authority issued pursuant to
this Act and the income from these notes and bonds may be free from all taxation by
the State or its political subdivisions, except for estate, transfer, and inheritance
taxes. The exemption from taxation provided by the preceding sentence shall apply to the
income on any notes or bonds of the Authority only if the Authority in its sole judgment
determines that the exemption enhances the marketability of the bonds or notes or
reduces the interest rates that would otherwise be borne by the bonds or notes. For purposes of Section 250 of the Illinois Income Tax Act, the exemption of the
Authority shall terminate after all of the bonds have been paid. The amount of such income that shall be added and then subtracted on the Illinois
income tax return of a taxpayer, subject to Section 203 of the Illinois Income Tax
Act, from federal adjusted gross income or federal taxable income in computing Illinois
base income shall be the interest net of any bond premium amortization.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
Was this helpful?
Welcome to FindLaw's Cases & Codes
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.