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Illinois adopts new regulation for apportioning business income of transportation companies

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The Illinois Department of Revenue has adopted a regulation to provide guidance on how to apportion the business income of transportation companies. The regulation clarifies the major statutory changes for apportioning transportation company income that apply to taxable years ending on or after Dec. 31, 2008. Specifically, the apportionment fraction for business income derived from transportation services other than airline services (for example, trucking) is based on a combination of actual receipts and mileage, but the fraction for airline transportation services is based on the amount of revenue miles within and outside the state. The regulation also provides definitions and examples, including guidance on calculating apportionment fractions for transportation companies that use different measures for apportioning income and companies that offer several types of transportation services, including both ground and air services.

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