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Docket No. 92963-Agenda 11-November 2002.
JACK CAVENEY et al., Appellees, v. GLEN L. BOWER,
Director of Revenue, et al., Appellants.
Opinion filed May 8, 2003.

JUSTICE THOMAS delivered the opinion of the court:

Plaintiffs, Jack and Margaret Caveney, are shareholders inPanduit Corporation. For the tax years ending December 31, 1993,1994, and 1995, Panduit elected to be treated as a subchapter Scorporation for federal and state tax purposes. During the tax yearsin question, plaintiffs claimed a credit against their Illinois incometax liability, pursuant to section 201(k) of the Illinois Income TaxAct (the Act) (35 ILCS 5/201(k) (West 1996)), for research anddevelopment expenditures incurred by Panduit. The Statedisallowed the claims and calculated back taxes and interest in theamount of $1,091,131.60, which plaintiffs paid under protest.

Seeking a return of the amounts paid under protest, plaintiffsfiled suit under the State Officers and Employees MoneyDisposition Act (30 ILCS 230/1 et seq. (West 2000)). Plaintiffsfirst argued that they qualified for the tax credit under the versionof section 201(k) that was in force during the tax years in question.In the alternative, plaintiffs argued that, if they did not so qualify,section 201(k) violated the uniformity clause of the IllinoisConstitution (Ill. Const. 1970, art. IX,