	cont l illinois cil sees impact from tax reform the tax reform act of will have a substantial impact on continental illinois corp the company s annual report says one provision repeals the reserve method of providing for bad debts for banks with over mln dlrs in assets and requires that tax loan loss reserves taken in the past be restored to current ings status it said as a result those amounts will be subject to federal taxes it said no amounts were disclosed continental said it decided to deal with this change in its entirety in tax reform will also change foreign tax credit limitation rules and although the impact will not be material in the short term the act will require for the first time that income from certain foreign subsidiaries be taxable the report said the new legislation also reduces existing tax credits by pct in and pct in and later years it said continental s investment tax credits carryforwards of mln dlrs at year end will be reduced to mln dlrs in and if not used in to mln dlrs in it said another provision of the act could result in limiting the use of tax credits if a change in ownership of continental takes place the report said this could happen if the federal deposit insurance corp sells enough shares of continental s common stock over the next two years to cause a change in ownership it noted in december the fdic sold about one third of its junior convertible preference stock in continental to the public in the form of common stock reuter 
