Illinois 2023-2024 Regular Session

Illinois Senate Bill SB1963 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Public Act 103-0009
2	1		SB1963 EnrolledLRB103 25648 HLH 51997 b SB1963 Enrolled LRB103 25648 HLH 51997 b
3	2		SB1963 Enrolled LRB103 25648 HLH 51997 b
4		-	AN ACT concerning revenue.
5		-	Be it enacted by the People of the State of Illinois,
6		-	represented in the General Assembly:
7		-	ARTICLE 5. AIRCRAFT ENGINES
8		-	Section 5-5. The Use Tax Act is amended by changing
9		-	Section 3-5 as follows:
10		-	(35 ILCS 105/3-5)
11		-	Sec. 3-5. Exemptions. Use of the following tangible
12		-	personal property is exempt from the tax imposed by this Act:
13		-	(1) Personal property purchased from a corporation,
14		-	society, association, foundation, institution, or
15		-	organization, other than a limited liability company, that is
16		-	organized and operated as a not-for-profit service enterprise
17		-	for the benefit of persons 65 years of age or older if the
18		-	personal property was not purchased by the enterprise for the
19		-	purpose of resale by the enterprise.
20		-	(2) Personal property purchased by a not-for-profit
21		-	Illinois county fair association for use in conducting,
22		-	operating, or promoting the county fair.
23		-	(3) Personal property purchased by a not-for-profit arts
24		-	or cultural organization that establishes, by proof required
25		-	by the Department by rule, that it has received an exemption
	3	+	1 AN ACT concerning revenue.
	4	+	2 Be it enacted by the People of the State of Illinois,
	5	+	3 represented in the General Assembly:
	6	+	4 ARTICLE 5. AIRCRAFT ENGINES
	7	+	5 Section 5-5. The Use Tax Act is amended by changing
	8	+	6 Section 3-5 as follows:
	9	+	7 (35 ILCS 105/3-5)
	10	+	8 Sec. 3-5. Exemptions. Use of the following tangible
	11	+	9 personal property is exempt from the tax imposed by this Act:
	12	+	10 (1) Personal property purchased from a corporation,
	13	+	11 society, association, foundation, institution, or
	14	+	12 organization, other than a limited liability company, that is
	15	+	13 organized and operated as a not-for-profit service enterprise
	16	+	14 for the benefit of persons 65 years of age or older if the
	17	+	15 personal property was not purchased by the enterprise for the
	18	+	16 purpose of resale by the enterprise.
	19	+	17 (2) Personal property purchased by a not-for-profit
	20	+	18 Illinois county fair association for use in conducting,
	21	+	19 operating, or promoting the county fair.
	22	+	20 (3) Personal property purchased by a not-for-profit arts
	23	+	21 or cultural organization that establishes, by proof required
	24	+	22 by the Department by rule, that it has received an exemption
26	25
27	26
28	27
29	28		SB1963 Enrolled LRB103 25648 HLH 51997 b
30	29
31	30
32		-	under Section 501(c)(3) of the Internal Revenue Code and that
33		-	is organized and operated primarily for the presentation or
34		-	support of arts or cultural programming, activities, or
35		-	services. These organizations include, but are not limited to,
36		-	music and dramatic arts organizations such as symphony
37		-	orchestras and theatrical groups, arts and cultural service
38		-	organizations, local arts councils, visual arts organizations,
39		-	and media arts organizations. On and after July 1, 2001 (the
40		-	effective date of Public Act 92-35), however, an entity
41		-	otherwise eligible for this exemption shall not make tax-free
42		-	purchases unless it has an active identification number issued
43		-	by the Department.
44		-	(4) Personal property purchased by a governmental body, by
45		-	a corporation, society, association, foundation, or
46		-	institution organized and operated exclusively for charitable,
47		-	religious, or educational purposes, or by a not-for-profit
48		-	corporation, society, association, foundation, institution, or
49		-	organization that has no compensated officers or employees and
50		-	that is organized and operated primarily for the recreation of
51		-	persons 55 years of age or older. A limited liability company
52		-	may qualify for the exemption under this paragraph only if the
53		-	limited liability company is organized and operated
54		-	exclusively for educational purposes. On and after July 1,
55		-	1987, however, no entity otherwise eligible for this exemption
56		-	shall make tax-free purchases unless it has an active
57		-	exemption identification number issued by the Department.
58		-
59		-
60		-	(5) Until July 1, 2003, a passenger car that is a
61		-	replacement vehicle to the extent that the purchase price of
62		-	the car is subject to the Replacement Vehicle Tax.
63		-	(6) Until July 1, 2003 and beginning again on September 1,
64		-	2004 through August 30, 2014, graphic arts machinery and
65		-	equipment, including repair and replacement parts, both new
66		-	and used, and including that manufactured on special order,
67		-	certified by the purchaser to be used primarily for graphic
68		-	arts production, and including machinery and equipment
69		-	purchased for lease. Equipment includes chemicals or chemicals
70		-	acting as catalysts but only if the chemicals or chemicals
71		-	acting as catalysts effect a direct and immediate change upon
72		-	a graphic arts product. Beginning on July 1, 2017, graphic
73		-	arts machinery and equipment is included in the manufacturing
74		-	and assembling machinery and equipment exemption under
75		-	paragraph (18).
76		-	(7) Farm chemicals.
77		-	(8) Legal tender, currency, medallions, or gold or silver
78		-	coinage issued by the State of Illinois, the government of the
79		-	United States of America, or the government of any foreign
80		-	country, and bullion.
81		-	(9) Personal property purchased from a teacher-sponsored
82		-	student organization affiliated with an elementary or
83		-	secondary school located in Illinois.
84		-	(10) A motor vehicle that is used for automobile renting,
85		-	as defined in the Automobile Renting Occupation and Use Tax
86		-
87		-
88		-	Act.
89		-	(11) Farm machinery and equipment, both new and used,
90		-	including that manufactured on special order, certified by the
91		-	purchaser to be used primarily for production agriculture or
92		-	State or federal agricultural programs, including individual
93		-	replacement parts for the machinery and equipment, including
94		-	machinery and equipment purchased for lease, and including
95		-	implements of husbandry defined in Section 1-130 of the
96		-	Illinois Vehicle Code, farm machinery and agricultural
97		-	chemical and fertilizer spreaders, and nurse wagons required
98		-	to be registered under Section 3-809 of the Illinois Vehicle
99		-	Code, but excluding other motor vehicles required to be
100		-	registered under the Illinois Vehicle Code. Horticultural
101		-	polyhouses or hoop houses used for propagating, growing, or
102		-	overwintering plants shall be considered farm machinery and
103		-	equipment under this item (11). Agricultural chemical tender
104		-	tanks and dry boxes shall include units sold separately from a
105		-	motor vehicle required to be licensed and units sold mounted
106		-	on a motor vehicle required to be licensed if the selling price
107		-	of the tender is separately stated.
108		-	Farm machinery and equipment shall include precision
109		-	farming equipment that is installed or purchased to be
110		-	installed on farm machinery and equipment including, but not
111		-	limited to, tractors, harvesters, sprayers, planters, seeders,
112		-	or spreaders. Precision farming equipment includes, but is not
113		-	limited to, soil testing sensors, computers, monitors,
114		-
115		-
116		-	software, global positioning and mapping systems, and other
117		-	such equipment.
118		-	Farm machinery and equipment also includes computers,
119		-	sensors, software, and related equipment used primarily in the
120		-	computer-assisted operation of production agriculture
121		-	facilities, equipment, and activities such as, but not limited
122		-	to, the collection, monitoring, and correlation of animal and
123		-	crop data for the purpose of formulating animal diets and
124		-	agricultural chemicals. This item (11) is exempt from the
125		-	provisions of Section 3-90.
126		-	(12) Until June 30, 2013, fuel and petroleum products sold
127		-	to or used by an air common carrier, certified by the carrier
128		-	to be used for consumption, shipment, or storage in the
129		-	conduct of its business as an air common carrier, for a flight
130		-	destined for or returning from a location or locations outside
131		-	the United States without regard to previous or subsequent
132		-	domestic stopovers.
133		-	Beginning July 1, 2013, fuel and petroleum products sold
134		-	to or used by an air carrier, certified by the carrier to be
135		-	used for consumption, shipment, or storage in the conduct of
136		-	its business as an air common carrier, for a flight that (i) is
137		-	engaged in foreign trade or is engaged in trade between the
138		-	United States and any of its possessions and (ii) transports
139		-	at least one individual or package for hire from the city of
140		-	origination to the city of final destination on the same
141		-	aircraft, without regard to a change in the flight number of
142		-
143		-
144		-	that aircraft.
145		-	(13) Proceeds of mandatory service charges separately
146		-	stated on customers' bills for the purchase and consumption of
147		-	food and beverages purchased at retail from a retailer, to the
148		-	extent that the proceeds of the service charge are in fact
149		-	turned over as tips or as a substitute for tips to the
150		-	employees who participate directly in preparing, serving,
151		-	hosting or cleaning up the food or beverage function with
152		-	respect to which the service charge is imposed.
153		-	(14) Until July 1, 2003, oil field exploration, drilling,
154		-	and production equipment, including (i) rigs and parts of
155		-	rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
156		-	pipe and tubular goods, including casing and drill strings,
157		-	(iii) pumps and pump-jack units, (iv) storage tanks and flow
158		-	lines, (v) any individual replacement part for oil field
159		-	exploration, drilling, and production equipment, and (vi)
160		-	machinery and equipment purchased for lease; but excluding
161		-	motor vehicles required to be registered under the Illinois
162		-	Vehicle Code.
163		-	(15) Photoprocessing machinery and equipment, including
164		-	repair and replacement parts, both new and used, including
165		-	that manufactured on special order, certified by the purchaser
166		-	to be used primarily for photoprocessing, and including
167		-	photoprocessing machinery and equipment purchased for lease.
168		-	(16) Until July 1, 2028, coal and aggregate exploration,
169		-	mining, off-highway hauling, processing, maintenance, and
170		-
171		-
172		-	reclamation equipment, including replacement parts and
173		-	equipment, and including equipment purchased for lease, but
174		-	excluding motor vehicles required to be registered under the
175		-	Illinois Vehicle Code. The changes made to this Section by
176		-	Public Act 97-767 apply on and after July 1, 2003, but no claim
177		-	for credit or refund is allowed on or after August 16, 2013
178		-	(the effective date of Public Act 98-456) for such taxes paid
179		-	during the period beginning July 1, 2003 and ending on August
180		-	16, 2013 (the effective date of Public Act 98-456).
181		-	(17) Until July 1, 2003, distillation machinery and
182		-	equipment, sold as a unit or kit, assembled or installed by the
183		-	retailer, certified by the user to be used only for the
184		-	production of ethyl alcohol that will be used for consumption
185		-	as motor fuel or as a component of motor fuel for the personal
186		-	use of the user, and not subject to sale or resale.
187		-	(18) Manufacturing and assembling machinery and equipment
188		-	used primarily in the process of manufacturing or assembling
189		-	tangible personal property for wholesale or retail sale or
190		-	lease, whether that sale or lease is made directly by the
191		-	manufacturer or by some other person, whether the materials
192		-	used in the process are owned by the manufacturer or some other
193		-	person, or whether that sale or lease is made apart from or as
194		-	an incident to the seller's engaging in the service occupation
195		-	of producing machines, tools, dies, jigs, patterns, gauges, or
196		-	other similar items of no commercial value on special order
197		-	for a particular purchaser. The exemption provided by this
198		-
199		-
200		-	paragraph (18) includes production related tangible personal
201		-	property, as defined in Section 3-50, purchased on or after
202		-	July 1, 2019. The exemption provided by this paragraph (18)
203		-	does not include machinery and equipment used in (i) the
204		-	generation of electricity for wholesale or retail sale; (ii)
205		-	the generation or treatment of natural or artificial gas for
206		-	wholesale or retail sale that is delivered to customers
207		-	through pipes, pipelines, or mains; or (iii) the treatment of
208		-	water for wholesale or retail sale that is delivered to
209		-	customers through pipes, pipelines, or mains. The provisions
210		-	of Public Act 98-583 are declaratory of existing law as to the
211		-	meaning and scope of this exemption. Beginning on July 1,
212		-	2017, the exemption provided by this paragraph (18) includes,
213		-	but is not limited to, graphic arts machinery and equipment,
214		-	as defined in paragraph (6) of this Section.
215		-	(19) Personal property delivered to a purchaser or
216		-	purchaser's donee inside Illinois when the purchase order for
217		-	that personal property was received by a florist located
218		-	outside Illinois who has a florist located inside Illinois
219		-	deliver the personal property.
220		-	(20) Semen used for artificial insemination of livestock
221		-	for direct agricultural production.
222		-	(21) Horses, or interests in horses, registered with and
223		-	meeting the requirements of any of the Arabian Horse Club
224		-	Registry of America, Appaloosa Horse Club, American Quarter
225		-	Horse Association, United States Trotting Association, or
226		-
227		-
228		-	Jockey Club, as appropriate, used for purposes of breeding or
229		-	racing for prizes. This item (21) is exempt from the
230		-	provisions of Section 3-90, and the exemption provided for
231		-	under this item (21) applies for all periods beginning May 30,
232		-	1995, but no claim for credit or refund is allowed on or after
233		-	January 1, 2008 for such taxes paid during the period
234		-	beginning May 30, 2000 and ending on January 1, 2008.
235		-	(22) Computers and communications equipment utilized for
236		-	any hospital purpose and equipment used in the diagnosis,
237		-	analysis, or treatment of hospital patients purchased by a
238		-	lessor who leases the equipment, under a lease of one year or
239		-	longer executed or in effect at the time the lessor would
240		-	otherwise be subject to the tax imposed by this Act, to a
241		-	hospital that has been issued an active tax exemption
242		-	identification number by the Department under Section 1g of
243		-	the Retailers' Occupation Tax Act. If the equipment is leased
244		-	in a manner that does not qualify for this exemption or is used
245		-	in any other non-exempt manner, the lessor shall be liable for
246		-	the tax imposed under this Act or the Service Use Tax Act, as
247		-	the case may be, based on the fair market value of the property
248		-	at the time the non-qualifying use occurs. No lessor shall
249		-	collect or attempt to collect an amount (however designated)
250		-	that purports to reimburse that lessor for the tax imposed by
251		-	this Act or the Service Use Tax Act, as the case may be, if the
252		-	tax has not been paid by the lessor. If a lessor improperly
253		-	collects any such amount from the lessee, the lessee shall
254		-
255		-
256		-	have a legal right to claim a refund of that amount from the
257		-	lessor. If, however, that amount is not refunded to the lessee
258		-	for any reason, the lessor is liable to pay that amount to the
259		-	Department.
260		-	(23) Personal property purchased by a lessor who leases
261		-	the property, under a lease of one year or longer executed or
262		-	in effect at the time the lessor would otherwise be subject to
263		-	the tax imposed by this Act, to a governmental body that has
264		-	been issued an active sales tax exemption identification
265		-	number by the Department under Section 1g of the Retailers'
266		-	Occupation Tax Act. If the property is leased in a manner that
267		-	does not qualify for this exemption or used in any other
268		-	non-exempt manner, the lessor shall be liable for the tax
269		-	imposed under this Act or the Service Use Tax Act, as the case
270		-	may be, based on the fair market value of the property at the
271		-	time the non-qualifying use occurs. No lessor shall collect or
272		-	attempt to collect an amount (however designated) that
273		-	purports to reimburse that lessor for the tax imposed by this
274		-	Act or the Service Use Tax Act, as the case may be, if the tax
275		-	has not been paid by the lessor. If a lessor improperly
276		-	collects any such amount from the lessee, the lessee shall
277		-	have a legal right to claim a refund of that amount from the
278		-	lessor. If, however, that amount is not refunded to the lessee
279		-	for any reason, the lessor is liable to pay that amount to the
280		-	Department.
281		-	(24) Beginning with taxable years ending on or after
282		-
283		-
284		-	December 31, 1995 and ending with taxable years ending on or
285		-	before December 31, 2004, personal property that is donated
286		-	for disaster relief to be used in a State or federally declared
287		-	disaster area in Illinois or bordering Illinois by a
288		-	manufacturer or retailer that is registered in this State to a
289		-	corporation, society, association, foundation, or institution
290		-	that has been issued a sales tax exemption identification
291		-	number by the Department that assists victims of the disaster
292		-	who reside within the declared disaster area.
293		-	(25) Beginning with taxable years ending on or after
294		-	December 31, 1995 and ending with taxable years ending on or
295		-	before December 31, 2004, personal property that is used in
296		-	the performance of infrastructure repairs in this State,
297		-	including but not limited to municipal roads and streets,
298		-	access roads, bridges, sidewalks, waste disposal systems,
299		-	water and sewer line extensions, water distribution and
300		-	purification facilities, storm water drainage and retention
301		-	facilities, and sewage treatment facilities, resulting from a
302		-	State or federally declared disaster in Illinois or bordering
303		-	Illinois when such repairs are initiated on facilities located
304		-	in the declared disaster area within 6 months after the
305		-	disaster.
306		-	(26) Beginning July 1, 1999, game or game birds purchased
307		-	at a "game breeding and hunting preserve area" as that term is
308		-	used in the Wildlife Code. This paragraph is exempt from the
309		-	provisions of Section 3-90.
310		-
311		-
312		-	(27) A motor vehicle, as that term is defined in Section
313		-	1-146 of the Illinois Vehicle Code, that is donated to a
314		-	corporation, limited liability company, society, association,
315		-	foundation, or institution that is determined by the
316		-	Department to be organized and operated exclusively for
317		-	educational purposes. For purposes of this exemption, "a
318		-	corporation, limited liability company, society, association,
319		-	foundation, or institution organized and operated exclusively
320		-	for educational purposes" means all tax-supported public
321		-	schools, private schools that offer systematic instruction in
322		-	useful branches of learning by methods common to public
323		-	schools and that compare favorably in their scope and
324		-	intensity with the course of study presented in tax-supported
325		-	schools, and vocational or technical schools or institutes
326		-	organized and operated exclusively to provide a course of
327		-	study of not less than 6 weeks duration and designed to prepare
328		-	individuals to follow a trade or to pursue a manual,
329		-	technical, mechanical, industrial, business, or commercial
330		-	occupation.
331		-	(28) Beginning January 1, 2000, personal property,
332		-	including food, purchased through fundraising events for the
333		-	benefit of a public or private elementary or secondary school,
334		-	a group of those schools, or one or more school districts if
335		-	the events are sponsored by an entity recognized by the school
336		-	district that consists primarily of volunteers and includes
337		-	parents and teachers of the school children. This paragraph
338		-
339		-
340		-	does not apply to fundraising events (i) for the benefit of
341		-	private home instruction or (ii) for which the fundraising
342		-	entity purchases the personal property sold at the events from
343		-	another individual or entity that sold the property for the
344		-	purpose of resale by the fundraising entity and that profits
345		-	from the sale to the fundraising entity. This paragraph is
346		-	exempt from the provisions of Section 3-90.
347		-	(29) Beginning January 1, 2000 and through December 31,
348		-	2001, new or used automatic vending machines that prepare and
349		-	serve hot food and beverages, including coffee, soup, and
350		-	other items, and replacement parts for these machines.
351		-	Beginning January 1, 2002 and through June 30, 2003, machines
352		-	and parts for machines used in commercial, coin-operated
353		-	amusement and vending business if a use or occupation tax is
354		-	paid on the gross receipts derived from the use of the
355		-	commercial, coin-operated amusement and vending machines. This
356		-	paragraph is exempt from the provisions of Section 3-90.
357		-	(30) Beginning January 1, 2001 and through June 30, 2016,
358		-	food for human consumption that is to be consumed off the
359		-	premises where it is sold (other than alcoholic beverages,
360		-	soft drinks, and food that has been prepared for immediate
361		-	consumption) and prescription and nonprescription medicines,
362		-	drugs, medical appliances, and insulin, urine testing
363		-	materials, syringes, and needles used by diabetics, for human
364		-	use, when purchased for use by a person receiving medical
365		-	assistance under Article V of the Illinois Public Aid Code who
366		-
367		-
368		-	resides in a licensed long-term care facility, as defined in
369		-	the Nursing Home Care Act, or in a licensed facility as defined
370		-	in the ID/DD Community Care Act, the MC/DD Act, or the
371		-	Specialized Mental Health Rehabilitation Act of 2013.
372		-	(31) Beginning on August 2, 2001 (the effective date of
373		-	Public Act 92-227), computers and communications equipment
374		-	utilized for any hospital purpose and equipment used in the
375		-	diagnosis, analysis, or treatment of hospital patients
376		-	purchased by a lessor who leases the equipment, under a lease
377		-	of one year or longer executed or in effect at the time the
378		-	lessor would otherwise be subject to the tax imposed by this
379		-	Act, to a hospital that has been issued an active tax exemption
380		-	identification number by the Department under Section 1g of
381		-	the Retailers' Occupation Tax Act. If the equipment is leased
382		-	in a manner that does not qualify for this exemption or is used
383		-	in any other nonexempt manner, the lessor shall be liable for
384		-	the tax imposed under this Act or the Service Use Tax Act, as
385		-	the case may be, based on the fair market value of the property
386		-	at the time the nonqualifying use occurs. No lessor shall
387		-	collect or attempt to collect an amount (however designated)
388		-	that purports to reimburse that lessor for the tax imposed by
389		-	this Act or the Service Use Tax Act, as the case may be, if the
390		-	tax has not been paid by the lessor. If a lessor improperly
391		-	collects any such amount from the lessee, the lessee shall
392		-	have a legal right to claim a refund of that amount from the
393		-	lessor. If, however, that amount is not refunded to the lessee
394		-
395		-
396		-	for any reason, the lessor is liable to pay that amount to the
397		-	Department. This paragraph is exempt from the provisions of
398		-	Section 3-90.
399		-	(32) Beginning on August 2, 2001 (the effective date of
400		-	Public Act 92-227), personal property purchased by a lessor
401		-	who leases the property, under a lease of one year or longer
402		-	executed or in effect at the time the lessor would otherwise be
403		-	subject to the tax imposed by this Act, to a governmental body
404		-	that has been issued an active sales tax exemption
405		-	identification number by the Department under Section 1g of
406		-	the Retailers' Occupation Tax Act. If the property is leased
407		-	in a manner that does not qualify for this exemption or used in
408		-	any other nonexempt manner, the lessor shall be liable for the
409		-	tax imposed under this Act or the Service Use Tax Act, as the
410		-	case may be, based on the fair market value of the property at
411		-	the time the nonqualifying use occurs. No lessor shall collect
412		-	or attempt to collect an amount (however designated) that
413		-	purports to reimburse that lessor for the tax imposed by this
414		-	Act or the Service Use Tax Act, as the case may be, if the tax
415		-	has not been paid by the lessor. If a lessor improperly
416		-	collects any such amount from the lessee, the lessee shall
417		-	have a legal right to claim a refund of that amount from the
418		-	lessor. If, however, that amount is not refunded to the lessee
419		-	for any reason, the lessor is liable to pay that amount to the
420		-	Department. This paragraph is exempt from the provisions of
421		-	Section 3-90.
422		-
423		-
424		-	(33) On and after July 1, 2003 and through June 30, 2004,
425		-	the use in this State of motor vehicles of the second division
426		-	with a gross vehicle weight in excess of 8,000 pounds and that
427		-	are subject to the commercial distribution fee imposed under
428		-	Section 3-815.1 of the Illinois Vehicle Code. Beginning on
429		-	July 1, 2004 and through June 30, 2005, the use in this State
430		-	of motor vehicles of the second division: (i) with a gross
431		-	vehicle weight rating in excess of 8,000 pounds; (ii) that are
432		-	subject to the commercial distribution fee imposed under
433		-	Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
434		-	are primarily used for commercial purposes. Through June 30,
435		-	2005, this exemption applies to repair and replacement parts
436		-	added after the initial purchase of such a motor vehicle if
437		-	that motor vehicle is used in a manner that would qualify for
438		-	the rolling stock exemption otherwise provided for in this
439		-	Act. For purposes of this paragraph, the term "used for
440		-	commercial purposes" means the transportation of persons or
441		-	property in furtherance of any commercial or industrial
442		-	enterprise, whether for-hire or not.
443		-	(34) Beginning January 1, 2008, tangible personal property
444		-	used in the construction or maintenance of a community water
445		-	supply, as defined under Section 3.145 of the Environmental
446		-	Protection Act, that is operated by a not-for-profit
447		-	corporation that holds a valid water supply permit issued
448		-	under Title IV of the Environmental Protection Act. This
449		-	paragraph is exempt from the provisions of Section 3-90.
450		-
451		-
452		-	(35) Beginning January 1, 2010 and continuing through
453		-	December 31, 2029 December 31, 2024, materials, parts,
454		-	equipment, components, and furnishings incorporated into or
455		-	upon an aircraft as part of the modification, refurbishment,
456		-	completion, replacement, repair, or maintenance of the
457		-	aircraft. This exemption includes consumable supplies used in
458		-	the modification, refurbishment, completion, replacement,
459		-	repair, and maintenance of aircraft. However, until January 1,
460		-	2024, this exemption , but excludes any materials, parts,
461		-	equipment, components, and consumable supplies used in the
462		-	modification, replacement, repair, and maintenance of aircraft
463		-	engines or power plants, whether such engines or power plants
464		-	are installed or uninstalled upon any such aircraft.
465		-	"Consumable supplies" include, but are not limited to,
466		-	adhesive, tape, sandpaper, general purpose lubricants,
467		-	cleaning solution, latex gloves, and protective films.
468		-	Beginning January 1, 2010 and continuing through December
469		-	31, 2023, this This exemption applies only to the use of
470		-	qualifying tangible personal property by persons who modify,
471		-	refurbish, complete, repair, replace, or maintain aircraft and
472		-	who (i) hold an Air Agency Certificate and are empowered to
473		-	operate an approved repair station by the Federal Aviation
474		-	Administration, (ii) have a Class IV Rating, and (iii) conduct
475		-	operations in accordance with Part 145 of the Federal Aviation
476		-	Regulations. From January 1, 2024 through December 31, 2029,
477		-	this exemption applies only to the use of qualifying tangible
478		-
479		-
480		-	personal property by: (A) persons who modify, refurbish,
481		-	complete, repair, replace, or maintain aircraft and who (i)
482		-	hold an Air Agency Certificate and are empowered to operate an
483		-	approved repair station by the Federal Aviation
484		-	Administration, (ii) have a Class IV Rating, and (iii) conduct
485		-	operations in accordance with Part 145 of the Federal Aviation
486		-	Regulations; and (B) persons who engage in the modification,
487		-	replacement, repair, and maintenance of aircraft engines or
488		-	power plants without regard to whether or not those persons
489		-	meet the qualifications of item (A).
490		-	The exemption does not include aircraft operated by a
491		-	commercial air carrier providing scheduled passenger air
492		-	service pursuant to authority issued under Part 121 or Part
493		-	129 of the Federal Aviation Regulations. The changes made to
494		-	this paragraph (35) by Public Act 98-534 are declarative of
495		-	existing law. It is the intent of the General Assembly that the
496		-	exemption under this paragraph (35) applies continuously from
497		-	January 1, 2010 through December 31, 2024; however, no claim
498		-	for credit or refund is allowed for taxes paid as a result of
499		-	the disallowance of this exemption on or after January 1, 2015
500		-	and prior to February 5, 2020 (the effective date of Public Act
501		-	101-629) this amendatory Act of the 101st General Assembly.
502		-	(36) Tangible personal property purchased by a
503		-	public-facilities corporation, as described in Section
504		-	11-65-10 of the Illinois Municipal Code, for purposes of
505		-	constructing or furnishing a municipal convention hall, but
506		-
507		-
508		-	only if the legal title to the municipal convention hall is
509		-	transferred to the municipality without any further
510		-	consideration by or on behalf of the municipality at the time
511		-	of the completion of the municipal convention hall or upon the
512		-	retirement or redemption of any bonds or other debt
513		-	instruments issued by the public-facilities corporation in
514		-	connection with the development of the municipal convention
515		-	hall. This exemption includes existing public-facilities
516		-	corporations as provided in Section 11-65-25 of the Illinois
517		-	Municipal Code. This paragraph is exempt from the provisions
518		-	of Section 3-90.
519		-	(37) Beginning January 1, 2017 and through December 31,
520		-	2026, menstrual pads, tampons, and menstrual cups.
521		-	(38) Merchandise that is subject to the Rental Purchase
522		-	Agreement Occupation and Use Tax. The purchaser must certify
523		-	that the item is purchased to be rented subject to a rental
524		-	purchase agreement, as defined in the Rental Purchase
525		-	Agreement Act, and provide proof of registration under the
526		-	Rental Purchase Agreement Occupation and Use Tax Act. This
527		-	paragraph is exempt from the provisions of Section 3-90.
528		-	(39) Tangible personal property purchased by a purchaser
529		-	who is exempt from the tax imposed by this Act by operation of
530		-	federal law. This paragraph is exempt from the provisions of
531		-	Section 3-90.
532		-	(40) Qualified tangible personal property used in the
533		-	construction or operation of a data center that has been
534		-
535		-
536		-	granted a certificate of exemption by the Department of
537		-	Commerce and Economic Opportunity, whether that tangible
538		-	personal property is purchased by the owner, operator, or
539		-	tenant of the data center or by a contractor or subcontractor
540		-	of the owner, operator, or tenant. Data centers that would
541		-	have qualified for a certificate of exemption prior to January
542		-	1, 2020 had Public Act 101-31 been in effect may apply for and
543		-	obtain an exemption for subsequent purchases of computer
544		-	equipment or enabling software purchased or leased to upgrade,
545		-	supplement, or replace computer equipment or enabling software
546		-	purchased or leased in the original investment that would have
547		-	qualified.
548		-	The Department of Commerce and Economic Opportunity shall
549		-	grant a certificate of exemption under this item (40) to
550		-	qualified data centers as defined by Section 605-1025 of the
551		-	Department of Commerce and Economic Opportunity Law of the
552		-	Civil Administrative Code of Illinois.
553		-	For the purposes of this item (40):
554		-	"Data center" means a building or a series of
555		-	buildings rehabilitated or constructed to house working
556		-	servers in one physical location or multiple sites within
557		-	the State of Illinois.
558		-	"Qualified tangible personal property" means:
559		-	electrical systems and equipment; climate control and
560		-	chilling equipment and systems; mechanical systems and
561		-	equipment; monitoring and secure systems; emergency
562		-
563		-
564		-	generators; hardware; computers; servers; data storage
565		-	devices; network connectivity equipment; racks; cabinets;
566		-	telecommunications cabling infrastructure; raised floor
567		-	systems; peripheral components or systems; software;
568		-	mechanical, electrical, or plumbing systems; battery
569		-	systems; cooling systems and towers; temperature control
570		-	systems; other cabling; and other data center
571		-	infrastructure equipment and systems necessary to operate
572		-	qualified tangible personal property, including fixtures;
573		-	and component parts of any of the foregoing, including
574		-	installation, maintenance, repair, refurbishment, and
575		-	replacement of qualified tangible personal property to
576		-	generate, transform, transmit, distribute, or manage
577		-	electricity necessary to operate qualified tangible
578		-	personal property; and all other tangible personal
579		-	property that is essential to the operations of a computer
580		-	data center. The term "qualified tangible personal
581		-	property" also includes building materials physically
582		-	incorporated in to the qualifying data center. To document
583		-	the exemption allowed under this Section, the retailer
584		-	must obtain from the purchaser a copy of the certificate
585		-	of eligibility issued by the Department of Commerce and
586		-	Economic Opportunity.
587		-	This item (40) is exempt from the provisions of Section
588		-	3-90.
589		-	(41) Beginning July 1, 2022, breast pumps, breast pump
590		-
591		-
592		-	collection and storage supplies, and breast pump kits. This
593		-	item (41) is exempt from the provisions of Section 3-90. As
594		-	used in this item (41):
595		-	"Breast pump" means an electrically controlled or
596		-	manually controlled pump device designed or marketed to be
597		-	used to express milk from a human breast during lactation,
598		-	including the pump device and any battery, AC adapter, or
599		-	other power supply unit that is used to power the pump
600		-	device and is packaged and sold with the pump device at the
601		-	time of sale.
602		-	"Breast pump collection and storage supplies" means
603		-	items of tangible personal property designed or marketed
604		-	to be used in conjunction with a breast pump to collect
605		-	milk expressed from a human breast and to store collected
606		-	milk until it is ready for consumption.
607		-	"Breast pump collection and storage supplies"
608		-	includes, but is not limited to: breast shields and breast
609		-	shield connectors; breast pump tubes and tubing adapters;
610		-	breast pump valves and membranes; backflow protectors and
611		-	backflow protector adaptors; bottles and bottle caps
612		-	specific to the operation of the breast pump; and breast
613		-	milk storage bags.
614		-	"Breast pump collection and storage supplies" does not
615		-	include: (1) bottles and bottle caps not specific to the
616		-	operation of the breast pump; (2) breast pump travel bags
617		-	and other similar carrying accessories, including ice
618		-
619		-
620		-	packs, labels, and other similar products; (3) breast pump
621		-	cleaning supplies; (4) nursing bras, bra pads, breast
622		-	shells, and other similar products; and (5) creams,
623		-	ointments, and other similar products that relieve
624		-	breastfeeding-related symptoms or conditions of the
625		-	breasts or nipples, unless sold as part of a breast pump
626		-	kit that is pre-packaged by the breast pump manufacturer
627		-	or distributor.
628		-	"Breast pump kit" means a kit that: (1) contains no
629		-	more than a breast pump, breast pump collection and
630		-	storage supplies, a rechargeable battery for operating the
631		-	breast pump, a breastmilk cooler, bottle stands, ice
632		-	packs, and a breast pump carrying case; and (2) is
633		-	pre-packaged as a breast pump kit by the breast pump
634		-	manufacturer or distributor.
635		-	(42) (41) Tangible personal property sold by or on behalf
636		-	of the State Treasurer pursuant to the Revised Uniform
637		-	Unclaimed Property Act. This item (42) (41) is exempt from the
638		-	provisions of Section 3-90.
639		-	(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
640		-	101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
641		-	6-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
642		-	102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
643		-	eff. 5-27-22; revised 8-1-22.)
644		-	Section 5-10. The Service Use Tax Act is amended by
645		-
646		-
647		-	changing Section 3-5 as follows:
648		-	(35 ILCS 110/3-5)
649		-	Sec. 3-5. Exemptions. Use of the following tangible
650		-	personal property is exempt from the tax imposed by this Act:
651		-	(1) Personal property purchased from a corporation,
652		-	society, association, foundation, institution, or
653		-	organization, other than a limited liability company, that is
654		-	organized and operated as a not-for-profit service enterprise
655		-	for the benefit of persons 65 years of age or older if the
656		-	personal property was not purchased by the enterprise for the
657		-	purpose of resale by the enterprise.
658		-	(2) Personal property purchased by a non-profit Illinois
659		-	county fair association for use in conducting, operating, or
660		-	promoting the county fair.
661		-	(3) Personal property purchased by a not-for-profit arts
662		-	or cultural organization that establishes, by proof required
663		-	by the Department by rule, that it has received an exemption
664		-	under Section 501(c)(3) of the Internal Revenue Code and that
665		-	is organized and operated primarily for the presentation or
666		-	support of arts or cultural programming, activities, or
667		-	services. These organizations include, but are not limited to,
668		-	music and dramatic arts organizations such as symphony
669		-	orchestras and theatrical groups, arts and cultural service
670		-	organizations, local arts councils, visual arts organizations,
671		-	and media arts organizations. On and after July 1, 2001 (the
672		-
673		-
674		-	effective date of Public Act 92-35), however, an entity
675		-	otherwise eligible for this exemption shall not make tax-free
676		-	purchases unless it has an active identification number issued
677		-	by the Department.
678		-	(4) Legal tender, currency, medallions, or gold or silver
679		-	coinage issued by the State of Illinois, the government of the
680		-	United States of America, or the government of any foreign
681		-	country, and bullion.
682		-	(5) Until July 1, 2003 and beginning again on September 1,
683		-	2004 through August 30, 2014, graphic arts machinery and
684		-	equipment, including repair and replacement parts, both new
685		-	and used, and including that manufactured on special order or
686		-	purchased for lease, certified by the purchaser to be used
687		-	primarily for graphic arts production. Equipment includes
688		-	chemicals or chemicals acting as catalysts but only if the
689		-	chemicals or chemicals acting as catalysts effect a direct and
690		-	immediate change upon a graphic arts product. Beginning on
691		-	July 1, 2017, graphic arts machinery and equipment is included
692		-	in the manufacturing and assembling machinery and equipment
693		-	exemption under Section 2 of this Act.
694		-	(6) Personal property purchased from a teacher-sponsored
695		-	student organization affiliated with an elementary or
696		-	secondary school located in Illinois.
697		-	(7) Farm machinery and equipment, both new and used,
698		-	including that manufactured on special order, certified by the
699		-	purchaser to be used primarily for production agriculture or
700		-
701		-
702		-	State or federal agricultural programs, including individual
703		-	replacement parts for the machinery and equipment, including
704		-	machinery and equipment purchased for lease, and including
705		-	implements of husbandry defined in Section 1-130 of the
706		-	Illinois Vehicle Code, farm machinery and agricultural
707		-	chemical and fertilizer spreaders, and nurse wagons required
708		-	to be registered under Section 3-809 of the Illinois Vehicle
709		-	Code, but excluding other motor vehicles required to be
710		-	registered under the Illinois Vehicle Code. Horticultural
711		-	polyhouses or hoop houses used for propagating, growing, or
712		-	overwintering plants shall be considered farm machinery and
713		-	equipment under this item (7). Agricultural chemical tender
714		-	tanks and dry boxes shall include units sold separately from a
715		-	motor vehicle required to be licensed and units sold mounted
716		-	on a motor vehicle required to be licensed if the selling price
717		-	of the tender is separately stated.
718		-	Farm machinery and equipment shall include precision
719		-	farming equipment that is installed or purchased to be
720		-	installed on farm machinery and equipment including, but not
721		-	limited to, tractors, harvesters, sprayers, planters, seeders,
722		-	or spreaders. Precision farming equipment includes, but is not
723		-	limited to, soil testing sensors, computers, monitors,
724		-	software, global positioning and mapping systems, and other
725		-	such equipment.
726		-	Farm machinery and equipment also includes computers,
727		-	sensors, software, and related equipment used primarily in the
728		-
729		-
730		-	computer-assisted operation of production agriculture
731		-	facilities, equipment, and activities such as, but not limited
732		-	to, the collection, monitoring, and correlation of animal and
733		-	crop data for the purpose of formulating animal diets and
734		-	agricultural chemicals. This item (7) is exempt from the
735		-	provisions of Section 3-75.
736		-	(8) Until June 30, 2013, fuel and petroleum products sold
737		-	to or used by an air common carrier, certified by the carrier
738		-	to be used for consumption, shipment, or storage in the
739		-	conduct of its business as an air common carrier, for a flight
740		-	destined for or returning from a location or locations outside
741		-	the United States without regard to previous or subsequent
742		-	domestic stopovers.
743		-	Beginning July 1, 2013, fuel and petroleum products sold
744		-	to or used by an air carrier, certified by the carrier to be
745		-	used for consumption, shipment, or storage in the conduct of
746		-	its business as an air common carrier, for a flight that (i) is
747		-	engaged in foreign trade or is engaged in trade between the
748		-	United States and any of its possessions and (ii) transports
749		-	at least one individual or package for hire from the city of
750		-	origination to the city of final destination on the same
751		-	aircraft, without regard to a change in the flight number of
752		-	that aircraft.
753		-	(9) Proceeds of mandatory service charges separately
754		-	stated on customers' bills for the purchase and consumption of
755		-	food and beverages acquired as an incident to the purchase of a
756		-
757		-
758		-	service from a serviceman, to the extent that the proceeds of
759		-	the service charge are in fact turned over as tips or as a
760		-	substitute for tips to the employees who participate directly
761		-	in preparing, serving, hosting or cleaning up the food or
762		-	beverage function with respect to which the service charge is
763		-	imposed.
764		-	(10) Until July 1, 2003, oil field exploration, drilling,
765		-	and production equipment, including (i) rigs and parts of
766		-	rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
767		-	pipe and tubular goods, including casing and drill strings,
768		-	(iii) pumps and pump-jack units, (iv) storage tanks and flow
769		-	lines, (v) any individual replacement part for oil field
770		-	exploration, drilling, and production equipment, and (vi)
771		-	machinery and equipment purchased for lease; but excluding
772		-	motor vehicles required to be registered under the Illinois
773		-	Vehicle Code.
774		-	(11) Proceeds from the sale of photoprocessing machinery
775		-	and equipment, including repair and replacement parts, both
776		-	new and used, including that manufactured on special order,
777		-	certified by the purchaser to be used primarily for
778		-	photoprocessing, and including photoprocessing machinery and
779		-	equipment purchased for lease.
780		-	(12) Until July 1, 2028, coal and aggregate exploration,
781		-	mining, off-highway hauling, processing, maintenance, and
782		-	reclamation equipment, including replacement parts and
783		-	equipment, and including equipment purchased for lease, but
784		-
785		-
786		-	excluding motor vehicles required to be registered under the
787		-	Illinois Vehicle Code. The changes made to this Section by
788		-	Public Act 97-767 apply on and after July 1, 2003, but no claim
789		-	for credit or refund is allowed on or after August 16, 2013
790		-	(the effective date of Public Act 98-456) for such taxes paid
791		-	during the period beginning July 1, 2003 and ending on August
792		-	16, 2013 (the effective date of Public Act 98-456).
793		-	(13) Semen used for artificial insemination of livestock
794		-	for direct agricultural production.
795		-	(14) Horses, or interests in horses, registered with and
796		-	meeting the requirements of any of the Arabian Horse Club
797		-	Registry of America, Appaloosa Horse Club, American Quarter
798		-	Horse Association, United States Trotting Association, or
799		-	Jockey Club, as appropriate, used for purposes of breeding or
800		-	racing for prizes. This item (14) is exempt from the
801		-	provisions of Section 3-75, and the exemption provided for
802		-	under this item (14) applies for all periods beginning May 30,
803		-	1995, but no claim for credit or refund is allowed on or after
804		-	January 1, 2008 (the effective date of Public Act 95-88) for
805		-	such taxes paid during the period beginning May 30, 2000 and
806		-	ending on January 1, 2008 (the effective date of Public Act
807		-	95-88).
808		-	(15) Computers and communications equipment utilized for
809		-	any hospital purpose and equipment used in the diagnosis,
810		-	analysis, or treatment of hospital patients purchased by a
811		-	lessor who leases the equipment, under a lease of one year or
812		-
813		-
814		-	longer executed or in effect at the time the lessor would
815		-	otherwise be subject to the tax imposed by this Act, to a
816		-	hospital that has been issued an active tax exemption
817		-	identification number by the Department under Section 1g of
818		-	the Retailers' Occupation Tax Act. If the equipment is leased
819		-	in a manner that does not qualify for this exemption or is used
820		-	in any other non-exempt manner, the lessor shall be liable for
821		-	the tax imposed under this Act or the Use Tax Act, as the case
822		-	may be, based on the fair market value of the property at the
823		-	time the non-qualifying use occurs. No lessor shall collect or
824		-	attempt to collect an amount (however designated) that
825		-	purports to reimburse that lessor for the tax imposed by this
826		-	Act or the Use Tax Act, as the case may be, if the tax has not
827		-	been paid by the lessor. If a lessor improperly collects any
828		-	such amount from the lessee, the lessee shall have a legal
829		-	right to claim a refund of that amount from the lessor. If,
830		-	however, that amount is not refunded to the lessee for any
831		-	reason, the lessor is liable to pay that amount to the
832		-	Department.
833		-	(16) Personal property purchased by a lessor who leases
834		-	the property, under a lease of one year or longer executed or
835		-	in effect at the time the lessor would otherwise be subject to
836		-	the tax imposed by this Act, to a governmental body that has
837		-	been issued an active tax exemption identification number by
838		-	the Department under Section 1g of the Retailers' Occupation
839		-	Tax Act. If the property is leased in a manner that does not
840		-
841		-
842		-	qualify for this exemption or is used in any other non-exempt
843		-	manner, the lessor shall be liable for the tax imposed under
844		-	this Act or the Use Tax Act, as the case may be, based on the
845		-	fair market value of the property at the time the
846		-	non-qualifying use occurs. No lessor shall collect or attempt
847		-	to collect an amount (however designated) that purports to
848		-	reimburse that lessor for the tax imposed by this Act or the
849		-	Use Tax Act, as the case may be, if the tax has not been paid
850		-	by the lessor. If a lessor improperly collects any such amount
851		-	from the lessee, the lessee shall have a legal right to claim a
852		-	refund of that amount from the lessor. If, however, that
853		-	amount is not refunded to the lessee for any reason, the lessor
854		-	is liable to pay that amount to the Department.
855		-	(17) Beginning with taxable years ending on or after
856		-	December 31, 1995 and ending with taxable years ending on or
857		-	before December 31, 2004, personal property that is donated
858		-	for disaster relief to be used in a State or federally declared
859		-	disaster area in Illinois or bordering Illinois by a
860		-	manufacturer or retailer that is registered in this State to a
861		-	corporation, society, association, foundation, or institution
862		-	that has been issued a sales tax exemption identification
863		-	number by the Department that assists victims of the disaster
864		-	who reside within the declared disaster area.
865		-	(18) Beginning with taxable years ending on or after
866		-	December 31, 1995 and ending with taxable years ending on or
867		-	before December 31, 2004, personal property that is used in
868		-
869		-
870		-	the performance of infrastructure repairs in this State,
871		-	including but not limited to municipal roads and streets,
872		-	access roads, bridges, sidewalks, waste disposal systems,
873		-	water and sewer line extensions, water distribution and
874		-	purification facilities, storm water drainage and retention
875		-	facilities, and sewage treatment facilities, resulting from a
876		-	State or federally declared disaster in Illinois or bordering
877		-	Illinois when such repairs are initiated on facilities located
878		-	in the declared disaster area within 6 months after the
879		-	disaster.
880		-	(19) Beginning July 1, 1999, game or game birds purchased
881		-	at a "game breeding and hunting preserve area" as that term is
882		-	used in the Wildlife Code. This paragraph is exempt from the
883		-	provisions of Section 3-75.
884		-	(20) A motor vehicle, as that term is defined in Section
885		-	1-146 of the Illinois Vehicle Code, that is donated to a
886		-	corporation, limited liability company, society, association,
887		-	foundation, or institution that is determined by the
888		-	Department to be organized and operated exclusively for
889		-	educational purposes. For purposes of this exemption, "a
890		-	corporation, limited liability company, society, association,
891		-	foundation, or institution organized and operated exclusively
892		-	for educational purposes" means all tax-supported public
893		-	schools, private schools that offer systematic instruction in
894		-	useful branches of learning by methods common to public
895		-	schools and that compare favorably in their scope and
896		-
897		-
898		-	intensity with the course of study presented in tax-supported
899		-	schools, and vocational or technical schools or institutes
900		-	organized and operated exclusively to provide a course of
901		-	study of not less than 6 weeks duration and designed to prepare
902		-	individuals to follow a trade or to pursue a manual,
903		-	technical, mechanical, industrial, business, or commercial
904		-	occupation.
905		-	(21) Beginning January 1, 2000, personal property,
906		-	including food, purchased through fundraising events for the
907		-	benefit of a public or private elementary or secondary school,
908		-	a group of those schools, or one or more school districts if
909		-	the events are sponsored by an entity recognized by the school
910		-	district that consists primarily of volunteers and includes
911		-	parents and teachers of the school children. This paragraph
912		-	does not apply to fundraising events (i) for the benefit of
913		-	private home instruction or (ii) for which the fundraising
914		-	entity purchases the personal property sold at the events from
915		-	another individual or entity that sold the property for the
916		-	purpose of resale by the fundraising entity and that profits
917		-	from the sale to the fundraising entity. This paragraph is
918		-	exempt from the provisions of Section 3-75.
919		-	(22) Beginning January 1, 2000 and through December 31,
920		-	2001, new or used automatic vending machines that prepare and
921		-	serve hot food and beverages, including coffee, soup, and
922		-	other items, and replacement parts for these machines.
923		-	Beginning January 1, 2002 and through June 30, 2003, machines
924		-
925		-
926		-	and parts for machines used in commercial, coin-operated
927		-	amusement and vending business if a use or occupation tax is
928		-	paid on the gross receipts derived from the use of the
929		-	commercial, coin-operated amusement and vending machines. This
930		-	paragraph is exempt from the provisions of Section 3-75.
931		-	(23) Beginning August 23, 2001 and through June 30, 2016,
932		-	food for human consumption that is to be consumed off the
933		-	premises where it is sold (other than alcoholic beverages,
934		-	soft drinks, and food that has been prepared for immediate
935		-	consumption) and prescription and nonprescription medicines,
936		-	drugs, medical appliances, and insulin, urine testing
937		-	materials, syringes, and needles used by diabetics, for human
938		-	use, when purchased for use by a person receiving medical
939		-	assistance under Article V of the Illinois Public Aid Code who
940		-	resides in a licensed long-term care facility, as defined in
941		-	the Nursing Home Care Act, or in a licensed facility as defined
942		-	in the ID/DD Community Care Act, the MC/DD Act, or the
943		-	Specialized Mental Health Rehabilitation Act of 2013.
944		-	(24) Beginning on August 2, 2001 (the effective date of
945		-	Public Act 92-227), computers and communications equipment
946		-	utilized for any hospital purpose and equipment used in the
947		-	diagnosis, analysis, or treatment of hospital patients
948		-	purchased by a lessor who leases the equipment, under a lease
949		-	of one year or longer executed or in effect at the time the
950		-	lessor would otherwise be subject to the tax imposed by this
951		-	Act, to a hospital that has been issued an active tax exemption
952		-
953		-
954		-	identification number by the Department under Section 1g of
955		-	the Retailers' Occupation Tax Act. If the equipment is leased
956		-	in a manner that does not qualify for this exemption or is used
957		-	in any other nonexempt manner, the lessor shall be liable for
958		-	the tax imposed under this Act or the Use Tax Act, as the case
959		-	may be, based on the fair market value of the property at the
960		-	time the nonqualifying use occurs. No lessor shall collect or
961		-	attempt to collect an amount (however designated) that
962		-	purports to reimburse that lessor for the tax imposed by this
963		-	Act or the Use Tax Act, as the case may be, if the tax has not
964		-	been paid by the lessor. If a lessor improperly collects any
965		-	such amount from the lessee, the lessee shall have a legal
966		-	right to claim a refund of that amount from the lessor. If,
967		-	however, that amount is not refunded to the lessee for any
968		-	reason, the lessor is liable to pay that amount to the
969		-	Department. This paragraph is exempt from the provisions of
970		-	Section 3-75.
971		-	(25) Beginning on August 2, 2001 (the effective date of
972		-	Public Act 92-227), personal property purchased by a lessor
973		-	who leases the property, under a lease of one year or longer
974		-	executed or in effect at the time the lessor would otherwise be
975		-	subject to the tax imposed by this Act, to a governmental body
976		-	that has been issued an active tax exemption identification
977		-	number by the Department under Section 1g of the Retailers'
978		-	Occupation Tax Act. If the property is leased in a manner that
979		-	does not qualify for this exemption or is used in any other
980		-
981		-
982		-	nonexempt manner, the lessor shall be liable for the tax
983		-	imposed under this Act or the Use Tax Act, as the case may be,
984		-	based on the fair market value of the property at the time the
985		-	nonqualifying use occurs. No lessor shall collect or attempt
986		-	to collect an amount (however designated) that purports to
987		-	reimburse that lessor for the tax imposed by this Act or the
988		-	Use Tax Act, as the case may be, if the tax has not been paid
989		-	by the lessor. If a lessor improperly collects any such amount
990		-	from the lessee, the lessee shall have a legal right to claim a
991		-	refund of that amount from the lessor. If, however, that
992		-	amount is not refunded to the lessee for any reason, the lessor
993		-	is liable to pay that amount to the Department. This paragraph
994		-	is exempt from the provisions of Section 3-75.
995		-	(26) Beginning January 1, 2008, tangible personal property
996		-	used in the construction or maintenance of a community water
997		-	supply, as defined under Section 3.145 of the Environmental
998		-	Protection Act, that is operated by a not-for-profit
999		-	corporation that holds a valid water supply permit issued
1000		-	under Title IV of the Environmental Protection Act. This
1001		-	paragraph is exempt from the provisions of Section 3-75.
1002		-	(27) Beginning January 1, 2010 and continuing through
1003		-	December 31, 2029 December 31, 2024, materials, parts,
1004		-	equipment, components, and furnishings incorporated into or
1005		-	upon an aircraft as part of the modification, refurbishment,
1006		-	completion, replacement, repair, or maintenance of the
1007		-	aircraft. This exemption includes consumable supplies used in
1008		-
1009		-
1010		-	the modification, refurbishment, completion, replacement,
1011		-	repair, and maintenance of aircraft. However, until January 1,
1012		-	2024, this exemption , but excludes any materials, parts,
1013		-	equipment, components, and consumable supplies used in the
1014		-	modification, replacement, repair, and maintenance of aircraft
1015		-	engines or power plants, whether such engines or power plants
1016		-	are installed or uninstalled upon any such aircraft.
1017		-	"Consumable supplies" include, but are not limited to,
1018		-	adhesive, tape, sandpaper, general purpose lubricants,
1019		-	cleaning solution, latex gloves, and protective films.
1020		-	Beginning January 1, 2010 and continuing through December
1021		-	31, 2023, this This exemption applies only to the use of
1022		-	qualifying tangible personal property transferred incident to
1023		-	the modification, refurbishment, completion, replacement,
1024		-	repair, or maintenance of aircraft by persons who (i) hold an
1025		-	Air Agency Certificate and are empowered to operate an
1026		-	approved repair station by the Federal Aviation
1027		-	Administration, (ii) have a Class IV Rating, and (iii) conduct
1028		-	operations in accordance with Part 145 of the Federal Aviation
1029		-	Regulations. From January 1, 2024 through December 31, 2029,
1030		-	this exemption applies only to the use of qualifying tangible
1031		-	personal property by: (A) persons who modify, refurbish,
1032		-	complete, repair, replace, or maintain aircraft and who (i)
1033		-	hold an Air Agency Certificate and are empowered to operate an
1034		-	approved repair station by the Federal Aviation
1035		-	Administration, (ii) have a Class IV Rating, and (iii) conduct
1036		-
1037		-
1038		-	operations in accordance with Part 145 of the Federal Aviation
1039		-	Regulations; and (B) persons who engage in the modification,
1040		-	replacement, repair, and maintenance of aircraft engines or
1041		-	power plants without regard to whether or not those persons
1042		-	meet the qualifications of item (A).
1043		-	The exemption does not include aircraft operated by a
1044		-	commercial air carrier providing scheduled passenger air
1045		-	service pursuant to authority issued under Part 121 or Part
1046		-	129 of the Federal Aviation Regulations. The changes made to
1047		-	this paragraph (27) by Public Act 98-534 are declarative of
1048		-	existing law. It is the intent of the General Assembly that the
1049		-	exemption under this paragraph (27) applies continuously from
1050		-	January 1, 2010 through December 31, 2024; however, no claim
1051		-	for credit or refund is allowed for taxes paid as a result of
1052		-	the disallowance of this exemption on or after January 1, 2015
1053		-	and prior to February 5, 2020 (the effective date of Public Act
1054		-	101-629) this amendatory Act of the 101st General Assembly.
1055		-	(28) Tangible personal property purchased by a
1056		-	public-facilities corporation, as described in Section
1057		-	11-65-10 of the Illinois Municipal Code, for purposes of
1058		-	constructing or furnishing a municipal convention hall, but
1059		-	only if the legal title to the municipal convention hall is
1060		-	transferred to the municipality without any further
1061		-	consideration by or on behalf of the municipality at the time
1062		-	of the completion of the municipal convention hall or upon the
1063		-	retirement or redemption of any bonds or other debt
1064		-
1065		-
1066		-	instruments issued by the public-facilities corporation in
1067		-	connection with the development of the municipal convention
1068		-	hall. This exemption includes existing public-facilities
1069		-	corporations as provided in Section 11-65-25 of the Illinois
1070		-	Municipal Code. This paragraph is exempt from the provisions
1071		-	of Section 3-75.
1072		-	(29) Beginning January 1, 2017 and through December 31,
1073		-	2026, menstrual pads, tampons, and menstrual cups.
1074		-	(30) Tangible personal property transferred to a purchaser
1075		-	who is exempt from the tax imposed by this Act by operation of
1076		-	federal law. This paragraph is exempt from the provisions of
1077		-	Section 3-75.
1078		-	(31) Qualified tangible personal property used in the
1079		-	construction or operation of a data center that has been
1080		-	granted a certificate of exemption by the Department of
1081		-	Commerce and Economic Opportunity, whether that tangible
1082		-	personal property is purchased by the owner, operator, or
1083		-	tenant of the data center or by a contractor or subcontractor
1084		-	of the owner, operator, or tenant. Data centers that would
1085		-	have qualified for a certificate of exemption prior to January
1086		-	1, 2020 had Public Act 101-31 this amendatory Act of the 101st
1087		-	General Assembly been in effect, may apply for and obtain an
1088		-	exemption for subsequent purchases of computer equipment or
1089		-	enabling software purchased or leased to upgrade, supplement,
1090		-	or replace computer equipment or enabling software purchased
1091		-	or leased in the original investment that would have
1092		-
1093		-
1094		-	qualified.
1095		-	The Department of Commerce and Economic Opportunity shall
1096		-	grant a certificate of exemption under this item (31) to
1097		-	qualified data centers as defined by Section 605-1025 of the
1098		-	Department of Commerce and Economic Opportunity Law of the
1099		-	Civil Administrative Code of Illinois.
1100		-	For the purposes of this item (31):
1101		-	"Data center" means a building or a series of
1102		-	buildings rehabilitated or constructed to house working
1103		-	servers in one physical location or multiple sites within
1104		-	the State of Illinois.
1105		-	"Qualified tangible personal property" means:
1106		-	electrical systems and equipment; climate control and
1107		-	chilling equipment and systems; mechanical systems and
1108		-	equipment; monitoring and secure systems; emergency
1109		-	generators; hardware; computers; servers; data storage
1110		-	devices; network connectivity equipment; racks; cabinets;
1111		-	telecommunications cabling infrastructure; raised floor
1112		-	systems; peripheral components or systems; software;
1113		-	mechanical, electrical, or plumbing systems; battery
1114		-	systems; cooling systems and towers; temperature control
1115		-	systems; other cabling; and other data center
1116		-	infrastructure equipment and systems necessary to operate
1117		-	qualified tangible personal property, including fixtures;
1118		-	and component parts of any of the foregoing, including
1119		-	installation, maintenance, repair, refurbishment, and
1120		-
1121		-
1122		-	replacement of qualified tangible personal property to
1123		-	generate, transform, transmit, distribute, or manage
1124		-	electricity necessary to operate qualified tangible
1125		-	personal property; and all other tangible personal
1126		-	property that is essential to the operations of a computer
1127		-	data center. The term "qualified tangible personal
1128		-	property" also includes building materials physically
1129		-	incorporated in to the qualifying data center. To document
1130		-	the exemption allowed under this Section, the retailer
1131		-	must obtain from the purchaser a copy of the certificate
1132		-	of eligibility issued by the Department of Commerce and
1133		-	Economic Opportunity.
1134		-	This item (31) is exempt from the provisions of Section
1135		-	3-75.
1136		-	(32) Beginning July 1, 2022, breast pumps, breast pump
1137		-	collection and storage supplies, and breast pump kits. This
1138		-	item (32) is exempt from the provisions of Section 3-75. As
1139		-	used in this item (32):
1140		-	"Breast pump" means an electrically controlled or
1141		-	manually controlled pump device designed or marketed to be
1142		-	used to express milk from a human breast during lactation,
1143		-	including the pump device and any battery, AC adapter, or
1144		-	other power supply unit that is used to power the pump
1145		-	device and is packaged and sold with the pump device at the
1146		-	time of sale.
1147		-	"Breast pump collection and storage supplies" means
1148		-
1149		-
1150		-	items of tangible personal property designed or marketed
1151		-	to be used in conjunction with a breast pump to collect
1152		-	milk expressed from a human breast and to store collected
1153		-	milk until it is ready for consumption.
1154		-	"Breast pump collection and storage supplies"
1155		-	includes, but is not limited to: breast shields and breast
1156		-	shield connectors; breast pump tubes and tubing adapters;
1157		-	breast pump valves and membranes; backflow protectors and
1158		-	backflow protector adaptors; bottles and bottle caps
1159		-	specific to the operation of the breast pump; and breast
1160		-	milk storage bags.
1161		-	"Breast pump collection and storage supplies" does not
1162		-	include: (1) bottles and bottle caps not specific to the
1163		-	operation of the breast pump; (2) breast pump travel bags
1164		-	and other similar carrying accessories, including ice
1165		-	packs, labels, and other similar products; (3) breast pump
1166		-	cleaning supplies; (4) nursing bras, bra pads, breast
1167		-	shells, and other similar products; and (5) creams,
1168		-	ointments, and other similar products that relieve
1169		-	breastfeeding-related symptoms or conditions of the
1170		-	breasts or nipples, unless sold as part of a breast pump
1171		-	kit that is pre-packaged by the breast pump manufacturer
1172		-	or distributor.
1173		-	"Breast pump kit" means a kit that: (1) contains no
1174		-	more than a breast pump, breast pump collection and
1175		-	storage supplies, a rechargeable battery for operating the
1176		-
1177		-
1178		-	breast pump, a breastmilk cooler, bottle stands, ice
1179		-	packs, and a breast pump carrying case; and (2) is
1180		-	pre-packaged as a breast pump kit by the breast pump
1181		-	manufacturer or distributor.
1182		-	(33) (32) Tangible personal property sold by or on behalf
1183		-	of the State Treasurer pursuant to the Revised Uniform
1184		-	Unclaimed Property Act. This item (33) (32) is exempt from the
1185		-	provisions of Section 3-75.
1186		-	(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
1187		-	101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
1188		-	70, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1189		-	75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
1190		-	Section 5-15. The Service Occupation Tax Act is amended by
1191		-	changing Section 3-5 as follows:
1192		-	(35 ILCS 115/3-5)
1193		-	Sec. 3-5. Exemptions. The following tangible personal
1194		-	property is exempt from the tax imposed by this Act:
1195		-	(1) Personal property sold by a corporation, society,
1196		-	association, foundation, institution, or organization, other
1197		-	than a limited liability company, that is organized and
1198		-	operated as a not-for-profit service enterprise for the
1199		-	benefit of persons 65 years of age or older if the personal
1200		-	property was not purchased by the enterprise for the purpose
1201		-	of resale by the enterprise.
1202		-
1203		-
1204		-	(2) Personal property purchased by a not-for-profit
1205		-	Illinois county fair association for use in conducting,
1206		-	operating, or promoting the county fair.
1207		-	(3) Personal property purchased by any not-for-profit arts
1208		-	or cultural organization that establishes, by proof required
1209		-	by the Department by rule, that it has received an exemption
1210		-	under Section 501(c)(3) of the Internal Revenue Code and that
1211		-	is organized and operated primarily for the presentation or
1212		-	support of arts or cultural programming, activities, or
1213		-	services. These organizations include, but are not limited to,
1214		-	music and dramatic arts organizations such as symphony
1215		-	orchestras and theatrical groups, arts and cultural service
1216		-	organizations, local arts councils, visual arts organizations,
1217		-	and media arts organizations. On and after July 1, 2001 (the
1218		-	effective date of Public Act 92-35), however, an entity
1219		-	otherwise eligible for this exemption shall not make tax-free
1220		-	purchases unless it has an active identification number issued
1221		-	by the Department.
1222		-	(4) Legal tender, currency, medallions, or gold or silver
1223		-	coinage issued by the State of Illinois, the government of the
1224		-	United States of America, or the government of any foreign
1225		-	country, and bullion.
1226		-	(5) Until July 1, 2003 and beginning again on September 1,
1227		-	2004 through August 30, 2014, graphic arts machinery and
1228		-	equipment, including repair and replacement parts, both new
1229		-	and used, and including that manufactured on special order or
1230		-
1231		-
1232		-	purchased for lease, certified by the purchaser to be used
1233		-	primarily for graphic arts production. Equipment includes
1234		-	chemicals or chemicals acting as catalysts but only if the
1235		-	chemicals or chemicals acting as catalysts effect a direct and
1236		-	immediate change upon a graphic arts product. Beginning on
1237		-	July 1, 2017, graphic arts machinery and equipment is included
1238		-	in the manufacturing and assembling machinery and equipment
1239		-	exemption under Section 2 of this Act.
1240		-	(6) Personal property sold by a teacher-sponsored student
1241		-	organization affiliated with an elementary or secondary school
1242		-	located in Illinois.
1243		-	(7) Farm machinery and equipment, both new and used,
1244		-	including that manufactured on special order, certified by the
1245		-	purchaser to be used primarily for production agriculture or
1246		-	State or federal agricultural programs, including individual
1247		-	replacement parts for the machinery and equipment, including
1248		-	machinery and equipment purchased for lease, and including
1249		-	implements of husbandry defined in Section 1-130 of the
1250		-	Illinois Vehicle Code, farm machinery and agricultural
1251		-	chemical and fertilizer spreaders, and nurse wagons required
1252		-	to be registered under Section 3-809 of the Illinois Vehicle
1253		-	Code, but excluding other motor vehicles required to be
1254		-	registered under the Illinois Vehicle Code. Horticultural
1255		-	polyhouses or hoop houses used for propagating, growing, or
1256		-	overwintering plants shall be considered farm machinery and
1257		-	equipment under this item (7). Agricultural chemical tender
1258		-
1259		-
1260		-	tanks and dry boxes shall include units sold separately from a
1261		-	motor vehicle required to be licensed and units sold mounted
1262		-	on a motor vehicle required to be licensed if the selling price
1263		-	of the tender is separately stated.
1264		-	Farm machinery and equipment shall include precision
1265		-	farming equipment that is installed or purchased to be
1266		-	installed on farm machinery and equipment including, but not
1267		-	limited to, tractors, harvesters, sprayers, planters, seeders,
1268		-	or spreaders. Precision farming equipment includes, but is not
1269		-	limited to, soil testing sensors, computers, monitors,
1270		-	software, global positioning and mapping systems, and other
1271		-	such equipment.
1272		-	Farm machinery and equipment also includes computers,
1273		-	sensors, software, and related equipment used primarily in the
1274		-	computer-assisted operation of production agriculture
1275		-	facilities, equipment, and activities such as, but not limited
1276		-	to, the collection, monitoring, and correlation of animal and
1277		-	crop data for the purpose of formulating animal diets and
1278		-	agricultural chemicals. This item (7) is exempt from the
1279		-	provisions of Section 3-55.
1280		-	(8) Until June 30, 2013, fuel and petroleum products sold
1281		-	to or used by an air common carrier, certified by the carrier
1282		-	to be used for consumption, shipment, or storage in the
1283		-	conduct of its business as an air common carrier, for a flight
1284		-	destined for or returning from a location or locations outside
1285		-	the United States without regard to previous or subsequent
1286		-
1287		-
1288		-	domestic stopovers.
1289		-	Beginning July 1, 2013, fuel and petroleum products sold
1290		-	to or used by an air carrier, certified by the carrier to be
1291		-	used for consumption, shipment, or storage in the conduct of
1292		-	its business as an air common carrier, for a flight that (i) is
1293		-	engaged in foreign trade or is engaged in trade between the
1294		-	United States and any of its possessions and (ii) transports
1295		-	at least one individual or package for hire from the city of
1296		-	origination to the city of final destination on the same
1297		-	aircraft, without regard to a change in the flight number of
1298		-	that aircraft.
1299		-	(9) Proceeds of mandatory service charges separately
1300		-	stated on customers' bills for the purchase and consumption of
1301		-	food and beverages, to the extent that the proceeds of the
1302		-	service charge are in fact turned over as tips or as a
1303		-	substitute for tips to the employees who participate directly
1304		-	in preparing, serving, hosting or cleaning up the food or
1305		-	beverage function with respect to which the service charge is
1306		-	imposed.
1307		-	(10) Until July 1, 2003, oil field exploration, drilling,
1308		-	and production equipment, including (i) rigs and parts of
1309		-	rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1310		-	pipe and tubular goods, including casing and drill strings,
1311		-	(iii) pumps and pump-jack units, (iv) storage tanks and flow
1312		-	lines, (v) any individual replacement part for oil field
1313		-	exploration, drilling, and production equipment, and (vi)
1314		-
1315		-
1316		-	machinery and equipment purchased for lease; but excluding
1317		-	motor vehicles required to be registered under the Illinois
1318		-	Vehicle Code.
1319		-	(11) Photoprocessing machinery and equipment, including
1320		-	repair and replacement parts, both new and used, including
1321		-	that manufactured on special order, certified by the purchaser
1322		-	to be used primarily for photoprocessing, and including
1323		-	photoprocessing machinery and equipment purchased for lease.
1324		-	(12) Until July 1, 2028, coal and aggregate exploration,
1325		-	mining, off-highway hauling, processing, maintenance, and
1326		-	reclamation equipment, including replacement parts and
1327		-	equipment, and including equipment purchased for lease, but
1328		-	excluding motor vehicles required to be registered under the
1329		-	Illinois Vehicle Code. The changes made to this Section by
1330		-	Public Act 97-767 apply on and after July 1, 2003, but no claim
1331		-	for credit or refund is allowed on or after August 16, 2013
1332		-	(the effective date of Public Act 98-456) for such taxes paid
1333		-	during the period beginning July 1, 2003 and ending on August
1334		-	16, 2013 (the effective date of Public Act 98-456).
1335		-	(13) Beginning January 1, 1992 and through June 30, 2016,
1336		-	food for human consumption that is to be consumed off the
1337		-	premises where it is sold (other than alcoholic beverages,
1338		-	soft drinks and food that has been prepared for immediate
1339		-	consumption) and prescription and non-prescription medicines,
1340		-	drugs, medical appliances, and insulin, urine testing
1341		-	materials, syringes, and needles used by diabetics, for human
1342		-
1343		-
1344		-	use, when purchased for use by a person receiving medical
1345		-	assistance under Article V of the Illinois Public Aid Code who
1346		-	resides in a licensed long-term care facility, as defined in
1347		-	the Nursing Home Care Act, or in a licensed facility as defined
1348		-	in the ID/DD Community Care Act, the MC/DD Act, or the
1349		-	Specialized Mental Health Rehabilitation Act of 2013.
1350		-	(14) Semen used for artificial insemination of livestock
1351		-	for direct agricultural production.
1352		-	(15) Horses, or interests in horses, registered with and
1353		-	meeting the requirements of any of the Arabian Horse Club
1354		-	Registry of America, Appaloosa Horse Club, American Quarter
1355		-	Horse Association, United States Trotting Association, or
1356		-	Jockey Club, as appropriate, used for purposes of breeding or
1357		-	racing for prizes. This item (15) is exempt from the
1358		-	provisions of Section 3-55, and the exemption provided for
1359		-	under this item (15) applies for all periods beginning May 30,
1360		-	1995, but no claim for credit or refund is allowed on or after
1361		-	January 1, 2008 (the effective date of Public Act 95-88) for
1362		-	such taxes paid during the period beginning May 30, 2000 and
1363		-	ending on January 1, 2008 (the effective date of Public Act
1364		-	95-88).
1365		-	(16) Computers and communications equipment utilized for
1366		-	any hospital purpose and equipment used in the diagnosis,
1367		-	analysis, or treatment of hospital patients sold to a lessor
1368		-	who leases the equipment, under a lease of one year or longer
1369		-	executed or in effect at the time of the purchase, to a
1370		-
1371		-
1372		-	hospital that has been issued an active tax exemption
1373		-	identification number by the Department under Section 1g of
1374		-	the Retailers' Occupation Tax Act.
1375		-	(17) Personal property sold to a lessor who leases the
1376		-	property, under a lease of one year or longer executed or in
1377		-	effect at the time of the purchase, to a governmental body that
1378		-	has been issued an active tax exemption identification number
1379		-	by the Department under Section 1g of the Retailers'
1380		-	Occupation Tax Act.
1381		-	(18) Beginning with taxable years ending on or after
1382		-	December 31, 1995 and ending with taxable years ending on or
1383		-	before December 31, 2004, personal property that is donated
1384		-	for disaster relief to be used in a State or federally declared
1385		-	disaster area in Illinois or bordering Illinois by a
1386		-	manufacturer or retailer that is registered in this State to a
1387		-	corporation, society, association, foundation, or institution
1388		-	that has been issued a sales tax exemption identification
1389		-	number by the Department that assists victims of the disaster
1390		-	who reside within the declared disaster area.
1391		-	(19) Beginning with taxable years ending on or after
1392		-	December 31, 1995 and ending with taxable years ending on or
1393		-	before December 31, 2004, personal property that is used in
1394		-	the performance of infrastructure repairs in this State,
1395		-	including but not limited to municipal roads and streets,
1396		-	access roads, bridges, sidewalks, waste disposal systems,
1397		-	water and sewer line extensions, water distribution and
1398		-
1399		-
1400		-	purification facilities, storm water drainage and retention
1401		-	facilities, and sewage treatment facilities, resulting from a
1402		-	State or federally declared disaster in Illinois or bordering
1403		-	Illinois when such repairs are initiated on facilities located
1404		-	in the declared disaster area within 6 months after the
1405		-	disaster.
1406		-	(20) Beginning July 1, 1999, game or game birds sold at a
1407		-	"game breeding and hunting preserve area" as that term is used
1408		-	in the Wildlife Code. This paragraph is exempt from the
1409		-	provisions of Section 3-55.
1410		-	(21) A motor vehicle, as that term is defined in Section
1411		-	1-146 of the Illinois Vehicle Code, that is donated to a
1412		-	corporation, limited liability company, society, association,
1413		-	foundation, or institution that is determined by the
1414		-	Department to be organized and operated exclusively for
1415		-	educational purposes. For purposes of this exemption, "a
1416		-	corporation, limited liability company, society, association,
1417		-	foundation, or institution organized and operated exclusively
1418		-	for educational purposes" means all tax-supported public
1419		-	schools, private schools that offer systematic instruction in
1420		-	useful branches of learning by methods common to public
1421		-	schools and that compare favorably in their scope and
1422		-	intensity with the course of study presented in tax-supported
1423		-	schools, and vocational or technical schools or institutes
1424		-	organized and operated exclusively to provide a course of
1425		-	study of not less than 6 weeks duration and designed to prepare
1426		-
1427		-
1428		-	individuals to follow a trade or to pursue a manual,
1429		-	technical, mechanical, industrial, business, or commercial
1430		-	occupation.
1431		-	(22) Beginning January 1, 2000, personal property,
1432		-	including food, purchased through fundraising events for the
1433		-	benefit of a public or private elementary or secondary school,
1434		-	a group of those schools, or one or more school districts if
1435		-	the events are sponsored by an entity recognized by the school
1436		-	district that consists primarily of volunteers and includes
1437		-	parents and teachers of the school children. This paragraph
1438		-	does not apply to fundraising events (i) for the benefit of
1439		-	private home instruction or (ii) for which the fundraising
1440		-	entity purchases the personal property sold at the events from
1441		-	another individual or entity that sold the property for the
1442		-	purpose of resale by the fundraising entity and that profits
1443		-	from the sale to the fundraising entity. This paragraph is
1444		-	exempt from the provisions of Section 3-55.
1445		-	(23) Beginning January 1, 2000 and through December 31,
1446		-	2001, new or used automatic vending machines that prepare and
1447		-	serve hot food and beverages, including coffee, soup, and
1448		-	other items, and replacement parts for these machines.
1449		-	Beginning January 1, 2002 and through June 30, 2003, machines
1450		-	and parts for machines used in commercial, coin-operated
1451		-	amusement and vending business if a use or occupation tax is
1452		-	paid on the gross receipts derived from the use of the
1453		-	commercial, coin-operated amusement and vending machines. This
1454		-
1455		-
1456		-	paragraph is exempt from the provisions of Section 3-55.
1457		-	(24) Beginning on August 2, 2001 (the effective date of
1458		-	Public Act 92-227), computers and communications equipment
1459		-	utilized for any hospital purpose and equipment used in the
1460		-	diagnosis, analysis, or treatment of hospital patients sold to
1461		-	a lessor who leases the equipment, under a lease of one year or
1462		-	longer executed or in effect at the time of the purchase, to a
1463		-	hospital that has been issued an active tax exemption
1464		-	identification number by the Department under Section 1g of
1465		-	the Retailers' Occupation Tax Act. This paragraph is exempt
1466		-	from the provisions of Section 3-55.
1467		-	(25) Beginning on August 2, 2001 (the effective date of
1468		-	Public Act 92-227), personal property sold to a lessor who
1469		-	leases the property, under a lease of one year or longer
1470		-	executed or in effect at the time of the purchase, to a
1471		-	governmental body that has been issued an active tax exemption
1472		-	identification number by the Department under Section 1g of
1473		-	the Retailers' Occupation Tax Act. This paragraph is exempt
1474		-	from the provisions of Section 3-55.
1475		-	(26) Beginning on January 1, 2002 and through June 30,
1476		-	2016, tangible personal property purchased from an Illinois
1477		-	retailer by a taxpayer engaged in centralized purchasing
1478		-	activities in Illinois who will, upon receipt of the property
1479		-	in Illinois, temporarily store the property in Illinois (i)
1480		-	for the purpose of subsequently transporting it outside this
1481		-	State for use or consumption thereafter solely outside this
1482		-
1483		-
1484		-	State or (ii) for the purpose of being processed, fabricated,
1485		-	or manufactured into, attached to, or incorporated into other
1486		-	tangible personal property to be transported outside this
1487		-	State and thereafter used or consumed solely outside this
1488		-	State. The Director of Revenue shall, pursuant to rules
1489		-	adopted in accordance with the Illinois Administrative
1490		-	Procedure Act, issue a permit to any taxpayer in good standing
1491		-	with the Department who is eligible for the exemption under
1492		-	this paragraph (26). The permit issued under this paragraph
1493		-	(26) shall authorize the holder, to the extent and in the
1494		-	manner specified in the rules adopted under this Act, to
1495		-	purchase tangible personal property from a retailer exempt
1496		-	from the taxes imposed by this Act. Taxpayers shall maintain
1497		-	all necessary books and records to substantiate the use and
1498		-	consumption of all such tangible personal property outside of
1499		-	the State of Illinois.
1500		-	(27) Beginning January 1, 2008, tangible personal property
1501		-	used in the construction or maintenance of a community water
1502		-	supply, as defined under Section 3.145 of the Environmental
1503		-	Protection Act, that is operated by a not-for-profit
1504		-	corporation that holds a valid water supply permit issued
1505		-	under Title IV of the Environmental Protection Act. This
1506		-	paragraph is exempt from the provisions of Section 3-55.
1507		-	(28) Tangible personal property sold to a
1508		-	public-facilities corporation, as described in Section
1509		-	11-65-10 of the Illinois Municipal Code, for purposes of
1510		-
1511		-
1512		-	constructing or furnishing a municipal convention hall, but
1513		-	only if the legal title to the municipal convention hall is
1514		-	transferred to the municipality without any further
1515		-	consideration by or on behalf of the municipality at the time
1516		-	of the completion of the municipal convention hall or upon the
1517		-	retirement or redemption of any bonds or other debt
1518		-	instruments issued by the public-facilities corporation in
1519		-	connection with the development of the municipal convention
1520		-	hall. This exemption includes existing public-facilities
1521		-	corporations as provided in Section 11-65-25 of the Illinois
1522		-	Municipal Code. This paragraph is exempt from the provisions
1523		-	of Section 3-55.
1524		-	(29) Beginning January 1, 2010 and continuing through
1525		-	December 31, 2029 December 31, 2024, materials, parts,
1526		-	equipment, components, and furnishings incorporated into or
1527		-	upon an aircraft as part of the modification, refurbishment,
1528		-	completion, replacement, repair, or maintenance of the
1529		-	aircraft. This exemption includes consumable supplies used in
1530		-	the modification, refurbishment, completion, replacement,
1531		-	repair, and maintenance of aircraft. However, until January 1,
1532		-	2024, this exemption , but excludes any materials, parts,
1533		-	equipment, components, and consumable supplies used in the
1534		-	modification, replacement, repair, and maintenance of aircraft
1535		-	engines or power plants, whether such engines or power plants
1536		-	are installed or uninstalled upon any such aircraft.
1537		-	"Consumable supplies" include, but are not limited to,
1538		-
1539		-
1540		-	adhesive, tape, sandpaper, general purpose lubricants,
1541		-	cleaning solution, latex gloves, and protective films.
1542		-	Beginning January 1, 2010 and continuing through December
1543		-	31, 2023, this This exemption applies only to the transfer of
1544		-	qualifying tangible personal property incident to the
1545		-	modification, refurbishment, completion, replacement, repair,
1546		-	or maintenance of an aircraft by persons who (i) hold an Air
1547		-	Agency Certificate and are empowered to operate an approved
1548		-	repair station by the Federal Aviation Administration, (ii)
1549		-	have a Class IV Rating, and (iii) conduct operations in
1550		-	accordance with Part 145 of the Federal Aviation Regulations.
1551		-	The exemption does not include aircraft operated by a
1552		-	commercial air carrier providing scheduled passenger air
1553		-	service pursuant to authority issued under Part 121 or Part
1554		-	129 of the Federal Aviation Regulations. From January 1, 2024
1555		-	through December 31, 2029, this exemption applies only to the
1556		-	use of qualifying tangible personal property by: (A) persons
1557		-	who modify, refurbish, complete, repair, replace, or maintain
1558		-	aircraft and who (i) hold an Air Agency Certificate and are
1559		-	empowered to operate an approved repair station by the Federal
1560		-	Aviation Administration, (ii) have a Class IV Rating, and
1561		-	(iii) conduct operations in accordance with Part 145 of the
1562		-	Federal Aviation Regulations; and (B) persons who engage in
1563		-	the modification, replacement, repair, and maintenance of
1564		-	aircraft engines or power plants without regard to whether or
1565		-	not those persons meet the qualifications of item (A).
1566		-
1567		-
1568		-	The changes made to this paragraph (29) by Public Act
1569		-	98-534 are declarative of existing law. It is the intent of the
1570		-	General Assembly that the exemption under this paragraph (29)
1571		-	applies continuously from January 1, 2010 through December 31,
1572		-	2024; however, no claim for credit or refund is allowed for
1573		-	taxes paid as a result of the disallowance of this exemption on
1574		-	or after January 1, 2015 and prior to February 5, 2020 (the
1575		-	effective date of Public Act 101-629) this amendatory Act of
1576		-	the 101st General Assembly.
1577		-	(30) Beginning January 1, 2017 and through December 31,
1578		-	2026, menstrual pads, tampons, and menstrual cups.
1579		-	(31) Tangible personal property transferred to a purchaser
1580		-	who is exempt from tax by operation of federal law. This
1581		-	paragraph is exempt from the provisions of Section 3-55.
1582		-	(32) Qualified tangible personal property used in the
1583		-	construction or operation of a data center that has been
1584		-	granted a certificate of exemption by the Department of
1585		-	Commerce and Economic Opportunity, whether that tangible
1586		-	personal property is purchased by the owner, operator, or
1587		-	tenant of the data center or by a contractor or subcontractor
1588		-	of the owner, operator, or tenant. Data centers that would
1589		-	have qualified for a certificate of exemption prior to January
1590		-	1, 2020 had Public Act 101-31 this amendatory Act of the 101st
1591		-	General Assembly been in effect, may apply for and obtain an
1592		-	exemption for subsequent purchases of computer equipment or
1593		-	enabling software purchased or leased to upgrade, supplement,
1594		-
1595		-
1596		-	or replace computer equipment or enabling software purchased
1597		-	or leased in the original investment that would have
1598		-	qualified.
1599		-	The Department of Commerce and Economic Opportunity shall
1600		-	grant a certificate of exemption under this item (32) to
1601		-	qualified data centers as defined by Section 605-1025 of the
1602		-	Department of Commerce and Economic Opportunity Law of the
1603		-	Civil Administrative Code of Illinois.
1604		-	For the purposes of this item (32):
1605		-	"Data center" means a building or a series of
1606		-	buildings rehabilitated or constructed to house working
1607		-	servers in one physical location or multiple sites within
1608		-	the State of Illinois.
1609		-	"Qualified tangible personal property" means:
1610		-	electrical systems and equipment; climate control and
1611		-	chilling equipment and systems; mechanical systems and
1612		-	equipment; monitoring and secure systems; emergency
1613		-	generators; hardware; computers; servers; data storage
1614		-	devices; network connectivity equipment; racks; cabinets;
1615		-	telecommunications cabling infrastructure; raised floor
1616		-	systems; peripheral components or systems; software;
1617		-	mechanical, electrical, or plumbing systems; battery
1618		-	systems; cooling systems and towers; temperature control
1619		-	systems; other cabling; and other data center
1620		-	infrastructure equipment and systems necessary to operate
1621		-	qualified tangible personal property, including fixtures;
1622		-
1623		-
1624		-	and component parts of any of the foregoing, including
1625		-	installation, maintenance, repair, refurbishment, and
1626		-	replacement of qualified tangible personal property to
1627		-	generate, transform, transmit, distribute, or manage
1628		-	electricity necessary to operate qualified tangible
1629		-	personal property; and all other tangible personal
1630		-	property that is essential to the operations of a computer
1631		-	data center. The term "qualified tangible personal
1632		-	property" also includes building materials physically
1633		-	incorporated in to the qualifying data center. To document
1634		-	the exemption allowed under this Section, the retailer
1635		-	must obtain from the purchaser a copy of the certificate
1636		-	of eligibility issued by the Department of Commerce and
1637		-	Economic Opportunity.
1638		-	This item (32) is exempt from the provisions of Section
1639		-	3-55.
1640		-	(33) Beginning July 1, 2022, breast pumps, breast pump
1641		-	collection and storage supplies, and breast pump kits. This
1642		-	item (33) is exempt from the provisions of Section 3-55. As
1643		-	used in this item (33):
1644		-	"Breast pump" means an electrically controlled or
1645		-	manually controlled pump device designed or marketed to be
1646		-	used to express milk from a human breast during lactation,
1647		-	including the pump device and any battery, AC adapter, or
1648		-	other power supply unit that is used to power the pump
1649		-	device and is packaged and sold with the pump device at the
1650		-
1651		-
1652		-	time of sale.
1653		-	"Breast pump collection and storage supplies" means
1654		-	items of tangible personal property designed or marketed
1655		-	to be used in conjunction with a breast pump to collect
1656		-	milk expressed from a human breast and to store collected
1657		-	milk until it is ready for consumption.
1658		-	"Breast pump collection and storage supplies"
1659		-	includes, but is not limited to: breast shields and breast
1660		-	shield connectors; breast pump tubes and tubing adapters;
1661		-	breast pump valves and membranes; backflow protectors and
1662		-	backflow protector adaptors; bottles and bottle caps
1663		-	specific to the operation of the breast pump; and breast
1664		-	milk storage bags.
1665		-	"Breast pump collection and storage supplies" does not
1666		-	include: (1) bottles and bottle caps not specific to the
1667		-	operation of the breast pump; (2) breast pump travel bags
1668		-	and other similar carrying accessories, including ice
1669		-	packs, labels, and other similar products; (3) breast pump
1670		-	cleaning supplies; (4) nursing bras, bra pads, breast
1671		-	shells, and other similar products; and (5) creams,
1672		-	ointments, and other similar products that relieve
1673		-	breastfeeding-related symptoms or conditions of the
1674		-	breasts or nipples, unless sold as part of a breast pump
1675		-	kit that is pre-packaged by the breast pump manufacturer
1676		-	or distributor.
1677		-	"Breast pump kit" means a kit that: (1) contains no
1678		-
1679		-
1680		-	more than a breast pump, breast pump collection and
1681		-	storage supplies, a rechargeable battery for operating the
1682		-	breast pump, a breastmilk cooler, bottle stands, ice
1683		-	packs, and a breast pump carrying case; and (2) is
1684		-	pre-packaged as a breast pump kit by the breast pump
1685		-	manufacturer or distributor.
1686		-	(34) (33) Tangible personal property sold by or on behalf
1687		-	of the State Treasurer pursuant to the Revised Uniform
1688		-	Unclaimed Property Act. This item (34) (33) is exempt from the
1689		-	provisions of Section 3-55.
1690		-	(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
1691		-	101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
1692		-	70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
1693		-	75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
1694		-	Section 5-20. The Retailers' Occupation Tax Act is amended
1695		-	by changing Section 2-5 as follows:
1696		-	(35 ILCS 120/2-5)
1697		-	Sec. 2-5. Exemptions. Gross receipts from proceeds from
1698		-	the sale of the following tangible personal property are
1699		-	exempt from the tax imposed by this Act:
1700		-	(1) Farm chemicals.
1701		-	(2) Farm machinery and equipment, both new and used,
1702		-	including that manufactured on special order, certified by
1703		-	the purchaser to be used primarily for production
1704		-
1705		-
1706		-	agriculture or State or federal agricultural programs,
1707		-	including individual replacement parts for the machinery
1708		-	and equipment, including machinery and equipment purchased
1709		-	for lease, and including implements of husbandry defined
1710		-	in Section 1-130 of the Illinois Vehicle Code, farm
1711		-	machinery and agricultural chemical and fertilizer
1712		-	spreaders, and nurse wagons required to be registered
1713		-	under Section 3-809 of the Illinois Vehicle Code, but
1714		-	excluding other motor vehicles required to be registered
1715		-	under the Illinois Vehicle Code. Horticultural polyhouses
1716		-	or hoop houses used for propagating, growing, or
1717		-	overwintering plants shall be considered farm machinery
1718		-	and equipment under this item (2). Agricultural chemical
1719		-	tender tanks and dry boxes shall include units sold
1720		-	separately from a motor vehicle required to be licensed
1721		-	and units sold mounted on a motor vehicle required to be
1722		-	licensed, if the selling price of the tender is separately
1723		-	stated.
1724		-	Farm machinery and equipment shall include precision
1725		-	farming equipment that is installed or purchased to be
1726		-	installed on farm machinery and equipment including, but
1727		-	not limited to, tractors, harvesters, sprayers, planters,
1728		-	seeders, or spreaders. Precision farming equipment
1729		-	includes, but is not limited to, soil testing sensors,
1730		-	computers, monitors, software, global positioning and
1731		-	mapping systems, and other such equipment.
1732		-
1733		-
1734		-	Farm machinery and equipment also includes computers,
1735		-	sensors, software, and related equipment used primarily in
1736		-	the computer-assisted operation of production agriculture
1737		-	facilities, equipment, and activities such as, but not
1738		-	limited to, the collection, monitoring, and correlation of
1739		-	animal and crop data for the purpose of formulating animal
1740		-	diets and agricultural chemicals. This item (2) is exempt
1741		-	from the provisions of Section 2-70.
1742		-	(3) Until July 1, 2003, distillation machinery and
1743		-	equipment, sold as a unit or kit, assembled or installed
1744		-	by the retailer, certified by the user to be used only for
1745		-	the production of ethyl alcohol that will be used for
1746		-	consumption as motor fuel or as a component of motor fuel
1747		-	for the personal use of the user, and not subject to sale
1748		-	or resale.
1749		-	(4) Until July 1, 2003 and beginning again September
1750		-	1, 2004 through August 30, 2014, graphic arts machinery
1751		-	and equipment, including repair and replacement parts,
1752		-	both new and used, and including that manufactured on
1753		-	special order or purchased for lease, certified by the
1754		-	purchaser to be used primarily for graphic arts
1755		-	production. Equipment includes chemicals or chemicals
1756		-	acting as catalysts but only if the chemicals or chemicals
1757		-	acting as catalysts effect a direct and immediate change
1758		-	upon a graphic arts product. Beginning on July 1, 2017,
1759		-	graphic arts machinery and equipment is included in the
1760		-
1761		-
1762		-	manufacturing and assembling machinery and equipment
1763		-	exemption under paragraph (14).
1764		-	(5) A motor vehicle that is used for automobile
1765		-	renting, as defined in the Automobile Renting Occupation
1766		-	and Use Tax Act. This paragraph is exempt from the
1767		-	provisions of Section 2-70.
1768		-	(6) Personal property sold by a teacher-sponsored
1769		-	student organization affiliated with an elementary or
1770		-	secondary school located in Illinois.
1771		-	(7) Until July 1, 2003, proceeds of that portion of
1772		-	the selling price of a passenger car the sale of which is
1773		-	subject to the Replacement Vehicle Tax.
1774		-	(8) Personal property sold to an Illinois county fair
1775		-	association for use in conducting, operating, or promoting
1776		-	the county fair.
1777		-	(9) Personal property sold to a not-for-profit arts or
1778		-	cultural organization that establishes, by proof required
1779		-	by the Department by rule, that it has received an
1780		-	exemption under Section 501(c)(3) of the Internal Revenue
1781		-	Code and that is organized and operated primarily for the
1782		-	presentation or support of arts or cultural programming,
1783		-	activities, or services. These organizations include, but
1784		-	are not limited to, music and dramatic arts organizations
1785		-	such as symphony orchestras and theatrical groups, arts
1786		-	and cultural service organizations, local arts councils,
1787		-	visual arts organizations, and media arts organizations.
1788		-
1789		-
1790		-	On and after July 1, 2001 (the effective date of Public Act
1791		-	92-35), however, an entity otherwise eligible for this
1792		-	exemption shall not make tax-free purchases unless it has
1793		-	an active identification number issued by the Department.
1794		-	(10) Personal property sold by a corporation, society,
1795		-	association, foundation, institution, or organization,
1796		-	other than a limited liability company, that is organized
1797		-	and operated as a not-for-profit service enterprise for
1798		-	the benefit of persons 65 years of age or older if the
1799		-	personal property was not purchased by the enterprise for
1800		-	the purpose of resale by the enterprise.
1801		-	(11) Personal property sold to a governmental body, to
1802		-	a corporation, society, association, foundation, or
1803		-	institution organized and operated exclusively for
1804		-	charitable, religious, or educational purposes, or to a
1805		-	not-for-profit corporation, society, association,
1806		-	foundation, institution, or organization that has no
1807		-	compensated officers or employees and that is organized
1808		-	and operated primarily for the recreation of persons 55
1809		-	years of age or older. A limited liability company may
1810		-	qualify for the exemption under this paragraph only if the
1811		-	limited liability company is organized and operated
1812		-	exclusively for educational purposes. On and after July 1,
1813		-	1987, however, no entity otherwise eligible for this
1814		-	exemption shall make tax-free purchases unless it has an
1815		-	active identification number issued by the Department.
1816		-
1817		-
1818		-	(12) (Blank).
1819		-	(12-5) On and after July 1, 2003 and through June 30,
1820		-	2004, motor vehicles of the second division with a gross
1821		-	vehicle weight in excess of 8,000 pounds that are subject
1822		-	to the commercial distribution fee imposed under Section
1823		-	3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
1824		-	2004 and through June 30, 2005, the use in this State of
1825		-	motor vehicles of the second division: (i) with a gross
1826		-	vehicle weight rating in excess of 8,000 pounds; (ii) that
1827		-	are subject to the commercial distribution fee imposed
1828		-	under Section 3-815.1 of the Illinois Vehicle Code; and
1829		-	(iii) that are primarily used for commercial purposes.
1830		-	Through June 30, 2005, this exemption applies to repair
1831		-	and replacement parts added after the initial purchase of
1832		-	such a motor vehicle if that motor vehicle is used in a
1833		-	manner that would qualify for the rolling stock exemption
1834		-	otherwise provided for in this Act. For purposes of this
1835		-	paragraph, "used for commercial purposes" means the
1836		-	transportation of persons or property in furtherance of
1837		-	any commercial or industrial enterprise whether for-hire
1838		-	or not.
1839		-	(13) Proceeds from sales to owners, lessors, or
1840		-	shippers of tangible personal property that is utilized by
1841		-	interstate carriers for hire for use as rolling stock
1842		-	moving in interstate commerce and equipment operated by a
1843		-	telecommunications provider, licensed as a common carrier
1844		-
1845		-
1846		-	by the Federal Communications Commission, which is
1847		-	permanently installed in or affixed to aircraft moving in
1848		-	interstate commerce.
1849		-	(14) Machinery and equipment that will be used by the
1850		-	purchaser, or a lessee of the purchaser, primarily in the
1851		-	process of manufacturing or assembling tangible personal
1852		-	property for wholesale or retail sale or lease, whether
1853		-	the sale or lease is made directly by the manufacturer or
1854		-	by some other person, whether the materials used in the
1855		-	process are owned by the manufacturer or some other
1856		-	person, or whether the sale or lease is made apart from or
1857		-	as an incident to the seller's engaging in the service
1858		-	occupation of producing machines, tools, dies, jigs,
1859		-	patterns, gauges, or other similar items of no commercial
1860		-	value on special order for a particular purchaser. The
1861		-	exemption provided by this paragraph (14) does not include
1862		-	machinery and equipment used in (i) the generation of
1863		-	electricity for wholesale or retail sale; (ii) the
1864		-	generation or treatment of natural or artificial gas for
1865		-	wholesale or retail sale that is delivered to customers
1866		-	through pipes, pipelines, or mains; or (iii) the treatment
1867		-	of water for wholesale or retail sale that is delivered to
1868		-	customers through pipes, pipelines, or mains. The
1869		-	provisions of Public Act 98-583 are declaratory of
1870		-	existing law as to the meaning and scope of this
1871		-	exemption. Beginning on July 1, 2017, the exemption
1872		-
1873		-
1874		-	provided by this paragraph (14) includes, but is not
1875		-	limited to, graphic arts machinery and equipment, as
1876		-	defined in paragraph (4) of this Section.
1877		-	(15) Proceeds of mandatory service charges separately
1878		-	stated on customers' bills for purchase and consumption of
1879		-	food and beverages, to the extent that the proceeds of the
1880		-	service charge are in fact turned over as tips or as a
1881		-	substitute for tips to the employees who participate
1882		-	directly in preparing, serving, hosting or cleaning up the
1883		-	food or beverage function with respect to which the
1884		-	service charge is imposed.
1885		-	(16) Tangible personal property sold to a purchaser if
1886		-	the purchaser is exempt from use tax by operation of
1887		-	federal law. This paragraph is exempt from the provisions
1888		-	of Section 2-70.
1889		-	(17) Tangible personal property sold to a common
1890		-	carrier by rail or motor that receives the physical
1891		-	possession of the property in Illinois and that transports
1892		-	the property, or shares with another common carrier in the
1893		-	transportation of the property, out of Illinois on a
1894		-	standard uniform bill of lading showing the seller of the
1895		-	property as the shipper or consignor of the property to a
1896		-	destination outside Illinois, for use outside Illinois.
1897		-	(18) Legal tender, currency, medallions, or gold or
1898		-	silver coinage issued by the State of Illinois, the
1899		-	government of the United States of America, or the
1900		-
1901		-
1902		-	government of any foreign country, and bullion.
1903		-	(19) Until July 1, 2003, oil field exploration,
1904		-	drilling, and production equipment, including (i) rigs and
1905		-	parts of rigs, rotary rigs, cable tool rigs, and workover
1906		-	rigs, (ii) pipe and tubular goods, including casing and
1907		-	drill strings, (iii) pumps and pump-jack units, (iv)
1908		-	storage tanks and flow lines, (v) any individual
1909		-	replacement part for oil field exploration, drilling, and
1910		-	production equipment, and (vi) machinery and equipment
1911		-	purchased for lease; but excluding motor vehicles required
1912		-	to be registered under the Illinois Vehicle Code.
1913		-	(20) Photoprocessing machinery and equipment,
1914		-	including repair and replacement parts, both new and used,
1915		-	including that manufactured on special order, certified by
1916		-	the purchaser to be used primarily for photoprocessing,
1917		-	and including photoprocessing machinery and equipment
1918		-	purchased for lease.
1919		-	(21) Until July 1, 2028, coal and aggregate
1920		-	exploration, mining, off-highway hauling, processing,
1921		-	maintenance, and reclamation equipment, including
1922		-	replacement parts and equipment, and including equipment
1923		-	purchased for lease, but excluding motor vehicles required
1924		-	to be registered under the Illinois Vehicle Code. The
1925		-	changes made to this Section by Public Act 97-767 apply on
1926		-	and after July 1, 2003, but no claim for credit or refund
1927		-	is allowed on or after August 16, 2013 (the effective date
1928		-
1929		-
1930		-	of Public Act 98-456) for such taxes paid during the
1931		-	period beginning July 1, 2003 and ending on August 16,
1932		-	2013 (the effective date of Public Act 98-456).
1933		-	(22) Until June 30, 2013, fuel and petroleum products
1934		-	sold to or used by an air carrier, certified by the carrier
1935		-	to be used for consumption, shipment, or storage in the
1936		-	conduct of its business as an air common carrier, for a
1937		-	flight destined for or returning from a location or
1938		-	locations outside the United States without regard to
1939		-	previous or subsequent domestic stopovers.
1940		-	Beginning July 1, 2013, fuel and petroleum products
1941		-	sold to or used by an air carrier, certified by the carrier
1942		-	to be used for consumption, shipment, or storage in the
1943		-	conduct of its business as an air common carrier, for a
1944		-	flight that (i) is engaged in foreign trade or is engaged
1945		-	in trade between the United States and any of its
1946		-	possessions and (ii) transports at least one individual or
1947		-	package for hire from the city of origination to the city
1948		-	of final destination on the same aircraft, without regard
1949		-	to a change in the flight number of that aircraft.
1950		-	(23) A transaction in which the purchase order is
1951		-	received by a florist who is located outside Illinois, but
1952		-	who has a florist located in Illinois deliver the property
1953		-	to the purchaser or the purchaser's donee in Illinois.
1954		-	(24) Fuel consumed or used in the operation of ships,
1955		-	barges, or vessels that are used primarily in or for the
1956		-
1957		-
1958		-	transportation of property or the conveyance of persons
1959		-	for hire on rivers bordering on this State if the fuel is
1960		-	delivered by the seller to the purchaser's barge, ship, or
1961		-	vessel while it is afloat upon that bordering river.
1962		-	(25) Except as provided in item (25-5) of this
1963		-	Section, a motor vehicle sold in this State to a
1964		-	nonresident even though the motor vehicle is delivered to
1965		-	the nonresident in this State, if the motor vehicle is not
1966		-	to be titled in this State, and if a drive-away permit is
1967		-	issued to the motor vehicle as provided in Section 3-603
1968		-	of the Illinois Vehicle Code or if the nonresident
1969		-	purchaser has vehicle registration plates to transfer to
1970		-	the motor vehicle upon returning to his or her home state.
1971		-	The issuance of the drive-away permit or having the
1972		-	out-of-state registration plates to be transferred is
1973		-	prima facie evidence that the motor vehicle will not be
1974		-	titled in this State.
1975		-	(25-5) The exemption under item (25) does not apply if
1976		-	the state in which the motor vehicle will be titled does
1977		-	not allow a reciprocal exemption for a motor vehicle sold
1978		-	and delivered in that state to an Illinois resident but
1979		-	titled in Illinois. The tax collected under this Act on
1980		-	the sale of a motor vehicle in this State to a resident of
1981		-	another state that does not allow a reciprocal exemption
1982		-	shall be imposed at a rate equal to the state's rate of tax
1983		-	on taxable property in the state in which the purchaser is
1984		-
1985		-
1986		-	a resident, except that the tax shall not exceed the tax
1987		-	that would otherwise be imposed under this Act. At the
1988		-	time of the sale, the purchaser shall execute a statement,
1989		-	signed under penalty of perjury, of his or her intent to
1990		-	title the vehicle in the state in which the purchaser is a
1991		-	resident within 30 days after the sale and of the fact of
1992		-	the payment to the State of Illinois of tax in an amount
1993		-	equivalent to the state's rate of tax on taxable property
1994		-	in his or her state of residence and shall submit the
1995		-	statement to the appropriate tax collection agency in his
1996		-	or her state of residence. In addition, the retailer must
1997		-	retain a signed copy of the statement in his or her
1998		-	records. Nothing in this item shall be construed to
1999		-	require the removal of the vehicle from this state
2000		-	following the filing of an intent to title the vehicle in
2001		-	the purchaser's state of residence if the purchaser titles
2002		-	the vehicle in his or her state of residence within 30 days
2003		-	after the date of sale. The tax collected under this Act in
2004		-	accordance with this item (25-5) shall be proportionately
2005		-	distributed as if the tax were collected at the 6.25%
2006		-	general rate imposed under this Act.
2007		-	(25-7) Beginning on July 1, 2007, no tax is imposed
2008		-	under this Act on the sale of an aircraft, as defined in
2009		-	Section 3 of the Illinois Aeronautics Act, if all of the
2010		-	following conditions are met:
2011		-	(1) the aircraft leaves this State within 15 days
2012		-
2013		-
2014		-	after the later of either the issuance of the final
2015		-	billing for the sale of the aircraft, or the
2016		-	authorized approval for return to service, completion
2017		-	of the maintenance record entry, and completion of the
2018		-	test flight and ground test for inspection, as
2019		-	required by 14 CFR C.F.R. 91.407;
2020		-	(2) the aircraft is not based or registered in
2021		-	this State after the sale of the aircraft; and
2022		-	(3) the seller retains in his or her books and
2023		-	records and provides to the Department a signed and
2024		-	dated certification from the purchaser, on a form
2025		-	prescribed by the Department, certifying that the
2026		-	requirements of this item (25-7) are met. The
2027		-	certificate must also include the name and address of
2028		-	the purchaser, the address of the location where the
2029		-	aircraft is to be titled or registered, the address of
2030		-	the primary physical location of the aircraft, and
2031		-	other information that the Department may reasonably
2032		-	require.
2033		-	For purposes of this item (25-7):
2034		-	"Based in this State" means hangared, stored, or
2035		-	otherwise used, excluding post-sale customizations as
2036		-	defined in this Section, for 10 or more days in each
2037		-	12-month period immediately following the date of the sale
2038		-	of the aircraft.
2039		-	"Registered in this State" means an aircraft
2040		-
2041		-
2042		-	registered with the Department of Transportation,
2043		-	Aeronautics Division, or titled or registered with the
2044		-	Federal Aviation Administration to an address located in
2045		-	this State.
2046		-	This paragraph (25-7) is exempt from the provisions of
2047		-	Section 2-70.
2048		-	(26) Semen used for artificial insemination of
2049		-	livestock for direct agricultural production.
2050		-	(27) Horses, or interests in horses, registered with
2051		-	and meeting the requirements of any of the Arabian Horse
2052		-	Club Registry of America, Appaloosa Horse Club, American
2053		-	Quarter Horse Association, United States Trotting
2054		-	Association, or Jockey Club, as appropriate, used for
2055		-	purposes of breeding or racing for prizes. This item (27)
2056		-	is exempt from the provisions of Section 2-70, and the
2057		-	exemption provided for under this item (27) applies for
2058		-	all periods beginning May 30, 1995, but no claim for
2059		-	credit or refund is allowed on or after January 1, 2008
2060		-	(the effective date of Public Act 95-88) for such taxes
2061		-	paid during the period beginning May 30, 2000 and ending
2062		-	on January 1, 2008 (the effective date of Public Act
2063		-	95-88).
2064		-	(28) Computers and communications equipment utilized
2065		-	for any hospital purpose and equipment used in the
2066		-	diagnosis, analysis, or treatment of hospital patients
2067		-	sold to a lessor who leases the equipment, under a lease of
2068		-
2069		-
2070		-	one year or longer executed or in effect at the time of the
2071		-	purchase, to a hospital that has been issued an active tax
2072		-	exemption identification number by the Department under
2073		-	Section 1g of this Act.
2074		-	(29) Personal property sold to a lessor who leases the
2075		-	property, under a lease of one year or longer executed or
2076		-	in effect at the time of the purchase, to a governmental
2077		-	body that has been issued an active tax exemption
2078		-	identification number by the Department under Section 1g
2079		-	of this Act.
2080		-	(30) Beginning with taxable years ending on or after
2081		-	December 31, 1995 and ending with taxable years ending on
2082		-	or before December 31, 2004, personal property that is
2083		-	donated for disaster relief to be used in a State or
2084		-	federally declared disaster area in Illinois or bordering
2085		-	Illinois by a manufacturer or retailer that is registered
2086		-	in this State to a corporation, society, association,
2087		-	foundation, or institution that has been issued a sales
2088		-	tax exemption identification number by the Department that
2089		-	assists victims of the disaster who reside within the
2090		-	declared disaster area.
2091		-	(31) Beginning with taxable years ending on or after
2092		-	December 31, 1995 and ending with taxable years ending on
2093		-	or before December 31, 2004, personal property that is
2094		-	used in the performance of infrastructure repairs in this
2095		-	State, including but not limited to municipal roads and
2096		-
2097		-
2098		-	streets, access roads, bridges, sidewalks, waste disposal
2099		-	systems, water and sewer line extensions, water
2100		-	distribution and purification facilities, storm water
2101		-	drainage and retention facilities, and sewage treatment
2102		-	facilities, resulting from a State or federally declared
2103		-	disaster in Illinois or bordering Illinois when such
2104		-	repairs are initiated on facilities located in the
2105		-	declared disaster area within 6 months after the disaster.
2106		-	(32) Beginning July 1, 1999, game or game birds sold
2107		-	at a "game breeding and hunting preserve area" as that
2108		-	term is used in the Wildlife Code. This paragraph is
2109		-	exempt from the provisions of Section 2-70.
2110		-	(33) A motor vehicle, as that term is defined in
2111		-	Section 1-146 of the Illinois Vehicle Code, that is
2112		-	donated to a corporation, limited liability company,
2113		-	society, association, foundation, or institution that is
2114		-	determined by the Department to be organized and operated
2115		-	exclusively for educational purposes. For purposes of this
2116		-	exemption, "a corporation, limited liability company,
2117		-	society, association, foundation, or institution organized
2118		-	and operated exclusively for educational purposes" means
2119		-	all tax-supported public schools, private schools that
2120		-	offer systematic instruction in useful branches of
2121		-	learning by methods common to public schools and that
2122		-	compare favorably in their scope and intensity with the
2123		-	course of study presented in tax-supported schools, and
2124		-
2125		-
2126		-	vocational or technical schools or institutes organized
2127		-	and operated exclusively to provide a course of study of
2128		-	not less than 6 weeks duration and designed to prepare
2129		-	individuals to follow a trade or to pursue a manual,
2130		-	technical, mechanical, industrial, business, or commercial
2131		-	occupation.
2132		-	(34) Beginning January 1, 2000, personal property,
2133		-	including food, purchased through fundraising events for
2134		-	the benefit of a public or private elementary or secondary
2135		-	school, a group of those schools, or one or more school
2136		-	districts if the events are sponsored by an entity
2137		-	recognized by the school district that consists primarily
2138		-	of volunteers and includes parents and teachers of the
2139		-	school children. This paragraph does not apply to
2140		-	fundraising events (i) for the benefit of private home
2141		-	instruction or (ii) for which the fundraising entity
2142		-	purchases the personal property sold at the events from
2143		-	another individual or entity that sold the property for
2144		-	the purpose of resale by the fundraising entity and that
2145		-	profits from the sale to the fundraising entity. This
2146		-	paragraph is exempt from the provisions of Section 2-70.
2147		-	(35) Beginning January 1, 2000 and through December
2148		-	31, 2001, new or used automatic vending machines that
2149		-	prepare and serve hot food and beverages, including
2150		-	coffee, soup, and other items, and replacement parts for
2151		-	these machines. Beginning January 1, 2002 and through June
2152		-
2153		-
2154		-	30, 2003, machines and parts for machines used in
2155		-	commercial, coin-operated amusement and vending business
2156		-	if a use or occupation tax is paid on the gross receipts
2157		-	derived from the use of the commercial, coin-operated
2158		-	amusement and vending machines. This paragraph is exempt
2159		-	from the provisions of Section 2-70.
2160		-	(35-5) Beginning August 23, 2001 and through June 30,
2161		-	2016, food for human consumption that is to be consumed
2162		-	off the premises where it is sold (other than alcoholic
2163		-	beverages, soft drinks, and food that has been prepared
2164		-	for immediate consumption) and prescription and
2165		-	nonprescription medicines, drugs, medical appliances, and
2166		-	insulin, urine testing materials, syringes, and needles
2167		-	used by diabetics, for human use, when purchased for use
2168		-	by a person receiving medical assistance under Article V
2169		-	of the Illinois Public Aid Code who resides in a licensed
2170		-	long-term care facility, as defined in the Nursing Home
2171		-	Care Act, or a licensed facility as defined in the ID/DD
2172		-	Community Care Act, the MC/DD Act, or the Specialized
2173		-	Mental Health Rehabilitation Act of 2013.
2174		-	(36) Beginning August 2, 2001, computers and
2175		-	communications equipment utilized for any hospital purpose
2176		-	and equipment used in the diagnosis, analysis, or
2177		-	treatment of hospital patients sold to a lessor who leases
2178		-	the equipment, under a lease of one year or longer
2179		-	executed or in effect at the time of the purchase, to a
2180		-
2181		-
2182		-	hospital that has been issued an active tax exemption
2183		-	identification number by the Department under Section 1g
2184		-	of this Act. This paragraph is exempt from the provisions
2185		-	of Section 2-70.
2186		-	(37) Beginning August 2, 2001, personal property sold
2187		-	to a lessor who leases the property, under a lease of one
2188		-	year or longer executed or in effect at the time of the
2189		-	purchase, to a governmental body that has been issued an
2190		-	active tax exemption identification number by the
2191		-	Department under Section 1g of this Act. This paragraph is
2192		-	exempt from the provisions of Section 2-70.
2193		-	(38) Beginning on January 1, 2002 and through June 30,
2194		-	2016, tangible personal property purchased from an
2195		-	Illinois retailer by a taxpayer engaged in centralized
2196		-	purchasing activities in Illinois who will, upon receipt
2197		-	of the property in Illinois, temporarily store the
2198		-	property in Illinois (i) for the purpose of subsequently
2199		-	transporting it outside this State for use or consumption
2200		-	thereafter solely outside this State or (ii) for the
2201		-	purpose of being processed, fabricated, or manufactured
2202		-	into, attached to, or incorporated into other tangible
2203		-	personal property to be transported outside this State and
2204		-	thereafter used or consumed solely outside this State. The
2205		-	Director of Revenue shall, pursuant to rules adopted in
2206		-	accordance with the Illinois Administrative Procedure Act,
2207		-	issue a permit to any taxpayer in good standing with the
2208		-
2209		-
2210		-	Department who is eligible for the exemption under this
2211		-	paragraph (38). The permit issued under this paragraph
2212		-	(38) shall authorize the holder, to the extent and in the
2213		-	manner specified in the rules adopted under this Act, to
2214		-	purchase tangible personal property from a retailer exempt
2215		-	from the taxes imposed by this Act. Taxpayers shall
2216		-	maintain all necessary books and records to substantiate
2217		-	the use and consumption of all such tangible personal
2218		-	property outside of the State of Illinois.
2219		-	(39) Beginning January 1, 2008, tangible personal
2220		-	property used in the construction or maintenance of a
2221		-	community water supply, as defined under Section 3.145 of
2222		-	the Environmental Protection Act, that is operated by a
2223		-	not-for-profit corporation that holds a valid water supply
2224		-	permit issued under Title IV of the Environmental
2225		-	Protection Act. This paragraph is exempt from the
2226		-	provisions of Section 2-70.
2227		-	(40) Beginning January 1, 2010 and continuing through
2228		-	December 31, 2029 December 31, 2024, materials, parts,
2229		-	equipment, components, and furnishings incorporated into
2230		-	or upon an aircraft as part of the modification,
2231		-	refurbishment, completion, replacement, repair, or
2232		-	maintenance of the aircraft. This exemption includes
2233		-	consumable supplies used in the modification,
2234		-	refurbishment, completion, replacement, repair, and
2235		-	maintenance of aircraft. However, until January 1, 2024,
2236		-
2237		-
2238		-	this exemption , but excludes any materials, parts,
2239		-	equipment, components, and consumable supplies used in the
2240		-	modification, replacement, repair, and maintenance of
2241		-	aircraft engines or power plants, whether such engines or
2242		-	power plants are installed or uninstalled upon any such
2243		-	aircraft. "Consumable supplies" include, but are not
2244		-	limited to, adhesive, tape, sandpaper, general purpose
2245		-	lubricants, cleaning solution, latex gloves, and
2246		-	protective films.
2247		-	Beginning January 1, 2010 and continuing through
2248		-	December 31, 2023, this This exemption applies only to the
2249		-	sale of qualifying tangible personal property to persons
2250		-	who modify, refurbish, complete, replace, or maintain an
2251		-	aircraft and who (i) hold an Air Agency Certificate and
2252		-	are empowered to operate an approved repair station by the
2253		-	Federal Aviation Administration, (ii) have a Class IV
2254		-	Rating, and (iii) conduct operations in accordance with
2255		-	Part 145 of the Federal Aviation Regulations. The
2256		-	exemption does not include aircraft operated by a
2257		-	commercial air carrier providing scheduled passenger air
2258		-	service pursuant to authority issued under Part 121 or
2259		-	Part 129 of the Federal Aviation Regulations. From January
2260		-	1, 2024 through December 31, 2029, this exemption applies
2261		-	only to the use of qualifying tangible personal property
2262		-	by: (A) persons who modify, refurbish, complete, repair,
2263		-	replace, or maintain aircraft and who (i) hold an Air
2264		-
2265		-
2266		-	Agency Certificate and are empowered to operate an
2267		-	approved repair station by the Federal Aviation
2268		-	Administration, (ii) have a Class IV Rating, and (iii)
2269		-	conduct operations in accordance with Part 145 of the
2270		-	Federal Aviation Regulations; and (B) persons who engage
2271		-	in the modification, replacement, repair, and maintenance
2272		-	of aircraft engines or power plants without regard to
2273		-	whether or not those persons meet the qualifications of
2274		-	item (A).
2275		-	The changes made to this paragraph (40) by Public Act
2276		-	98-534 are declarative of existing law. It is the intent
2277		-	of the General Assembly that the exemption under this
2278		-	paragraph (40) applies continuously from January 1, 2010
2279		-	through December 31, 2024; however, no claim for credit or
2280		-	refund is allowed for taxes paid as a result of the
2281		-	disallowance of this exemption on or after January 1, 2015
2282		-	and prior to February 5, 2020 (the effective date of
2283		-	Public Act 101-629) this amendatory Act of the 101st
2284		-	General Assembly.
2285		-	(41) Tangible personal property sold to a
2286		-	public-facilities corporation, as described in Section
2287		-	11-65-10 of the Illinois Municipal Code, for purposes of
2288		-	constructing or furnishing a municipal convention hall,
2289		-	but only if the legal title to the municipal convention
2290		-	hall is transferred to the municipality without any
2291		-	further consideration by or on behalf of the municipality
2292		-
2293		-
2294		-	at the time of the completion of the municipal convention
2295		-	hall or upon the retirement or redemption of any bonds or
2296		-	other debt instruments issued by the public-facilities
2297		-	corporation in connection with the development of the
2298		-	municipal convention hall. This exemption includes
2299		-	existing public-facilities corporations as provided in
2300		-	Section 11-65-25 of the Illinois Municipal Code. This
2301		-	paragraph is exempt from the provisions of Section 2-70.
2302		-	(42) Beginning January 1, 2017 and through December
2303		-	31, 2026, menstrual pads, tampons, and menstrual cups.
2304		-	(43) Merchandise that is subject to the Rental
2305		-	Purchase Agreement Occupation and Use Tax. The purchaser
2306		-	must certify that the item is purchased to be rented
2307		-	subject to a rental purchase agreement, as defined in the
2308		-	Rental Purchase Agreement Act, and provide proof of
2309		-	registration under the Rental Purchase Agreement
2310		-	Occupation and Use Tax Act. This paragraph is exempt from
2311		-	the provisions of Section 2-70.
2312		-	(44) Qualified tangible personal property used in the
2313		-	construction or operation of a data center that has been
2314		-	granted a certificate of exemption by the Department of
2315		-	Commerce and Economic Opportunity, whether that tangible
2316		-	personal property is purchased by the owner, operator, or
2317		-	tenant of the data center or by a contractor or
2318		-	subcontractor of the owner, operator, or tenant. Data
2319		-	centers that would have qualified for a certificate of
2320		-
2321		-
2322		-	exemption prior to January 1, 2020 had Public Act 101-31
2323		-	this amendatory Act of the 101st General Assembly been in
2324		-	effect, may apply for and obtain an exemption for
2325		-	subsequent purchases of computer equipment or enabling
2326		-	software purchased or leased to upgrade, supplement, or
2327		-	replace computer equipment or enabling software purchased
2328		-	or leased in the original investment that would have
2329		-	qualified.
2330		-	The Department of Commerce and Economic Opportunity
2331		-	shall grant a certificate of exemption under this item
2332		-	(44) to qualified data centers as defined by Section
2333		-	605-1025 of the Department of Commerce and Economic
2334		-	Opportunity Law of the Civil Administrative Code of
2335		-	Illinois.
2336		-	For the purposes of this item (44):
2337		-	"Data center" means a building or a series of
2338		-	buildings rehabilitated or constructed to house
2339		-	working servers in one physical location or multiple
2340		-	sites within the State of Illinois.
2341		-	"Qualified tangible personal property" means:
2342		-	electrical systems and equipment; climate control and
2343		-	chilling equipment and systems; mechanical systems and
2344		-	equipment; monitoring and secure systems; emergency
2345		-	generators; hardware; computers; servers; data storage
2346		-	devices; network connectivity equipment; racks;
2347		-	cabinets; telecommunications cabling infrastructure;
2348		-
2349		-
2350		-	raised floor systems; peripheral components or
2351		-	systems; software; mechanical, electrical, or plumbing
2352		-	systems; battery systems; cooling systems and towers;
2353		-	temperature control systems; other cabling; and other
2354		-	data center infrastructure equipment and systems
2355		-	necessary to operate qualified tangible personal
2356		-	property, including fixtures; and component parts of
2357		-	any of the foregoing, including installation,
2358		-	maintenance, repair, refurbishment, and replacement of
2359		-	qualified tangible personal property to generate,
2360		-	transform, transmit, distribute, or manage electricity
2361		-	necessary to operate qualified tangible personal
2362		-	property; and all other tangible personal property
2363		-	that is essential to the operations of a computer data
2364		-	center. The term "qualified tangible personal
2365		-	property" also includes building materials physically
2366		-	incorporated into the qualifying data center. To
2367		-	document the exemption allowed under this Section, the
2368		-	retailer must obtain from the purchaser a copy of the
2369		-	certificate of eligibility issued by the Department of
2370		-	Commerce and Economic Opportunity.
2371		-	This item (44) is exempt from the provisions of
2372		-	Section 2-70.
2373		-	(45) Beginning January 1, 2020 and through December
2374		-	31, 2020, sales of tangible personal property made by a
2375		-	marketplace seller over a marketplace for which tax is due
2376		-
2377		-
2378		-	under this Act but for which use tax has been collected and
2379		-	remitted to the Department by a marketplace facilitator
2380		-	under Section 2d of the Use Tax Act are exempt from tax
2381		-	under this Act. A marketplace seller claiming this
2382		-	exemption shall maintain books and records demonstrating
2383		-	that the use tax on such sales has been collected and
2384		-	remitted by a marketplace facilitator. Marketplace sellers
2385		-	that have properly remitted tax under this Act on such
2386		-	sales may file a claim for credit as provided in Section 6
2387		-	of this Act. No claim is allowed, however, for such taxes
2388		-	for which a credit or refund has been issued to the
2389		-	marketplace facilitator under the Use Tax Act, or for
2390		-	which the marketplace facilitator has filed a claim for
2391		-	credit or refund under the Use Tax Act.
2392		-	(46) Beginning July 1, 2022, breast pumps, breast pump
2393		-	collection and storage supplies, and breast pump kits.
2394		-	This item (46) is exempt from the provisions of Section
2395		-	2-70. As used in this item (46):
2396		-	"Breast pump" means an electrically controlled or
2397		-	manually controlled pump device designed or marketed to be
2398		-	used to express milk from a human breast during lactation,
2399		-	including the pump device and any battery, AC adapter, or
2400		-	other power supply unit that is used to power the pump
2401		-	device and is packaged and sold with the pump device at the
2402		-	time of sale.
2403		-	"Breast pump collection and storage supplies" means
2404		-
2405		-
2406		-	items of tangible personal property designed or marketed
2407		-	to be used in conjunction with a breast pump to collect
2408		-	milk expressed from a human breast and to store collected
2409		-	milk until it is ready for consumption.
2410		-	"Breast pump collection and storage supplies"
2411		-	includes, but is not limited to: breast shields and breast
2412		-	shield connectors; breast pump tubes and tubing adapters;
2413		-	breast pump valves and membranes; backflow protectors and
2414		-	backflow protector adaptors; bottles and bottle caps
2415		-	specific to the operation of the breast pump; and breast
2416		-	milk storage bags.
2417		-	"Breast pump collection and storage supplies" does not
2418		-	include: (1) bottles and bottle caps not specific to the
2419		-	operation of the breast pump; (2) breast pump travel bags
2420		-	and other similar carrying accessories, including ice
2421		-	packs, labels, and other similar products; (3) breast pump
2422		-	cleaning supplies; (4) nursing bras, bra pads, breast
2423		-	shells, and other similar products; and (5) creams,
2424		-	ointments, and other similar products that relieve
2425		-	breastfeeding-related symptoms or conditions of the
2426		-	breasts or nipples, unless sold as part of a breast pump
2427		-	kit that is pre-packaged by the breast pump manufacturer
2428		-	or distributor.
2429		-	"Breast pump kit" means a kit that: (1) contains no
2430		-	more than a breast pump, breast pump collection and
2431		-	storage supplies, a rechargeable battery for operating the
2432		-
2433		-
2434		-	breast pump, a breastmilk cooler, bottle stands, ice
2435		-	packs, and a breast pump carrying case; and (2) is
2436		-	pre-packaged as a breast pump kit by the breast pump
2437		-	manufacturer or distributor.
2438		-	(47) (46) Tangible personal property sold by or on
2439		-	behalf of the State Treasurer pursuant to the Revised
2440		-	Uniform Unclaimed Property Act. This item (47) (46) is
2441		-	exempt from the provisions of Section 2-70.
2442		-	(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
2443		-	101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
2444		-	8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
2445		-	102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
2446		-	eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
2447		-	ARTICLE 10. ETHANOL BLENDED FUEL
2448		-	Section 10-5. The Use Tax Act is amended by changing
2449		-	Sections 3-10, 3-40, and 3-44 and by adding Section 3-44.3 as
2450		-	follows:
2451		-	(35 ILCS 105/3-10)
2452		-	Sec. 3-10. Rate of tax. Unless otherwise provided in this
2453		-	Section, the tax imposed by this Act is at the rate of 6.25% of
2454		-	either the selling price or the fair market value, if any, of
2455		-	the tangible personal property. In all cases where property
2456		-	functionally used or consumed is the same as the property that
2457		-
2458		-
2459		-	was purchased at retail, then the tax is imposed on the selling
2460		-	price of the property. In all cases where property
2461		-	functionally used or consumed is a by-product or waste product
2462		-	that has been refined, manufactured, or produced from property
2463		-	purchased at retail, then the tax is imposed on the lower of
2464		-	the fair market value, if any, of the specific property so used
2465		-	in this State or on the selling price of the property purchased
2466		-	at retail. For purposes of this Section "fair market value"
2467		-	means the price at which property would change hands between a
2468		-	willing buyer and a willing seller, neither being under any
2469		-	compulsion to buy or sell and both having reasonable knowledge
2470		-	of the relevant facts. The fair market value shall be
2471		-	established by Illinois sales by the taxpayer of the same
2472		-	property as that functionally used or consumed, or if there
2473		-	are no such sales by the taxpayer, then comparable sales or
2474		-	purchases of property of like kind and character in Illinois.
2475		-	Beginning on July 1, 2000 and through December 31, 2000,
2476		-	with respect to motor fuel, as defined in Section 1.1 of the
2477		-	Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
2478		-	the Use Tax Act, the tax is imposed at the rate of 1.25%.
2479		-	Beginning on August 6, 2010 through August 15, 2010, and
2480		-	beginning again on August 5, 2022 through August 14, 2022,
2481		-	with respect to sales tax holiday items as defined in Section
2482		-	3-6 of this Act, the tax is imposed at the rate of 1.25%.
2483		-	With respect to gasohol, the tax imposed by this Act
2484		-	applies to (i) 70% of the proceeds of sales made on or after
2485		-
2486		-
2487		-	January 1, 1990, and before July 1, 2003, (ii) 80% of the
2488		-	proceeds of sales made on or after July 1, 2003 and on or
2489		-	before July 1, 2017, and (iii) 100% of the proceeds of sales
2490		-	made after July 1, 2017 and prior to January 1, 2024, (iv) 90%
2491		-	of the proceeds of sales made on or after January 1, 2024 and
2492		-	on or before December 31, 2028, and (v) 100% of the proceeds of
2493		-	sales made after December 31, 2028 thereafter. If, at any
2494		-	time, however, the tax under this Act on sales of gasohol is
2495		-	imposed at the rate of 1.25%, then the tax imposed by this Act
2496		-	applies to 100% of the proceeds of sales of gasohol made during
2497		-	that time.
2498		-	With respect to mid-range ethanol blends, the tax imposed
2499		-	by this Act applies to (i) 80% of the proceeds of sales made on
2500		-	or after January 1, 2024 and on or before December 31, 2028 and
2501		-	(ii) 100% of the proceeds of sales made thereafter. If, at any
2502		-	time, however, the tax under this Act on sales of mid-range
2503		-	ethanol blends is imposed at the rate of 1.25%, then the tax
2504		-	imposed by this Act applies to 100% of the proceeds of sales of
2505		-	mid-range ethanol blends made during that time.
2506		-	With respect to majority blended ethanol fuel, the tax
2507		-	imposed by this Act does not apply to the proceeds of sales
2508		-	made on or after July 1, 2003 and on or before December 31,
2509		-	2028 December 31, 2023 but applies to 100% of the proceeds of
2510		-	sales made thereafter.
2511		-	With respect to biodiesel blends with no less than 1% and
2512		-	no more than 10% biodiesel, the tax imposed by this Act applies
2513		-
2514		-
2515		-	to (i) 80% of the proceeds of sales made on or after July 1,
2516		-	2003 and on or before December 31, 2018 and (ii) 100% of the
2517		-	proceeds of sales made after December 31, 2018 and before
2518		-	January 1, 2024. On and after January 1, 2024 and on or before
2519		-	December 31, 2030, the taxation of biodiesel, renewable
2520		-	diesel, and biodiesel blends shall be as provided in Section
2521		-	3-5.1. If, at any time, however, the tax under this Act on
2522		-	sales of biodiesel blends with no less than 1% and no more than
2523		-	10% biodiesel is imposed at the rate of 1.25%, then the tax
2524		-	imposed by this Act applies to 100% of the proceeds of sales of
2525		-	biodiesel blends with no less than 1% and no more than 10%
2526		-	biodiesel made during that time.
2527		-	With respect to biodiesel and biodiesel blends with more
2528		-	than 10% but no more than 99% biodiesel, the tax imposed by
2529		-	this Act does not apply to the proceeds of sales made on or
2530		-	after July 1, 2003 and on or before December 31, 2023. On and
2531		-	after January 1, 2024 and on or before December 31, 2030, the
2532		-	taxation of biodiesel, renewable diesel, and biodiesel blends
2533		-	shall be as provided in Section 3-5.1.
2534		-	Until July 1, 2022 and beginning again on July 1, 2023,
2535		-	with respect to food for human consumption that is to be
2536		-	consumed off the premises where it is sold (other than
2537		-	alcoholic beverages, food consisting of or infused with adult
2538		-	use cannabis, soft drinks, and food that has been prepared for
2539		-	immediate consumption), the tax is imposed at the rate of 1%.
2540		-	Beginning on July 1, 2022 and until July 1, 2023, with respect
2541		-
2542		-
2543		-	to food for human consumption that is to be consumed off the
2544		-	premises where it is sold (other than alcoholic beverages,
2545		-	food consisting of or infused with adult use cannabis, soft
2546		-	drinks, and food that has been prepared for immediate
2547		-	consumption), the tax is imposed at the rate of 0%.
2548		-	With respect to prescription and nonprescription
2549		-	medicines, drugs, medical appliances, products classified as
2550		-	Class III medical devices by the United States Food and Drug
2551		-	Administration that are used for cancer treatment pursuant to
2552		-	a prescription, as well as any accessories and components
2553		-	related to those devices, modifications to a motor vehicle for
2554		-	the purpose of rendering it usable by a person with a
2555		-	disability, and insulin, blood sugar testing materials,
2556		-	syringes, and needles used by human diabetics, the tax is
2557		-	imposed at the rate of 1%. For the purposes of this Section,
2558		-	until September 1, 2009: the term "soft drinks" means any
2559		-	complete, finished, ready-to-use, non-alcoholic drink, whether
2560		-	carbonated or not, including, but not limited to, soda water,
2561		-	cola, fruit juice, vegetable juice, carbonated water, and all
2562		-	other preparations commonly known as soft drinks of whatever
2563		-	kind or description that are contained in any closed or sealed
2564		-	bottle, can, carton, or container, regardless of size; but
2565		-	"soft drinks" does not include coffee, tea, non-carbonated
2566		-	water, infant formula, milk or milk products as defined in the
2567		-	Grade A Pasteurized Milk and Milk Products Act, or drinks
2568		-	containing 50% or more natural fruit or vegetable juice.
2569		-
2570		-
2571		-	Notwithstanding any other provisions of this Act,
2572		-	beginning September 1, 2009, "soft drinks" means non-alcoholic
2573		-	beverages that contain natural or artificial sweeteners. "Soft
2574		-	drinks" does do not include beverages that contain milk or
2575		-	milk products, soy, rice or similar milk substitutes, or
2576		-	greater than 50% of vegetable or fruit juice by volume.
2577		-	Until August 1, 2009, and notwithstanding any other
2578		-	provisions of this Act, "food for human consumption that is to
2579		-	be consumed off the premises where it is sold" includes all
2580		-	food sold through a vending machine, except soft drinks and
2581		-	food products that are dispensed hot from a vending machine,
2582		-	regardless of the location of the vending machine. Beginning
2583		-	August 1, 2009, and notwithstanding any other provisions of
2584		-	this Act, "food for human consumption that is to be consumed
2585		-	off the premises where it is sold" includes all food sold
2586		-	through a vending machine, except soft drinks, candy, and food
2587		-	products that are dispensed hot from a vending machine,
2588		-	regardless of the location of the vending machine.
2589		-	Notwithstanding any other provisions of this Act,
2590		-	beginning September 1, 2009, "food for human consumption that
2591		-	is to be consumed off the premises where it is sold" does not
2592		-	include candy. For purposes of this Section, "candy" means a
2593		-	preparation of sugar, honey, or other natural or artificial
2594		-	sweeteners in combination with chocolate, fruits, nuts or
2595		-	other ingredients or flavorings in the form of bars, drops, or
2596		-	pieces. "Candy" does not include any preparation that contains
2597		-
2598		-
2599		-	flour or requires refrigeration.
2600		-	Notwithstanding any other provisions of this Act,
2601		-	beginning September 1, 2009, "nonprescription medicines and
2602		-	drugs" does not include grooming and hygiene products. For
2603		-	purposes of this Section, "grooming and hygiene products"
2604		-	includes, but is not limited to, soaps and cleaning solutions,
2605		-	shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
2606		-	lotions and screens, unless those products are available by
2607		-	prescription only, regardless of whether the products meet the
2608		-	definition of "over-the-counter-drugs". For the purposes of
2609		-	this paragraph, "over-the-counter-drug" means a drug for human
2610		-	use that contains a label that identifies the product as a drug
2611		-	as required by 21 CFR C.F.R. 201.66. The
2612		-	"over-the-counter-drug" label includes:
2613		-	(A) a A "Drug Facts" panel; or
2614		-	(B) a A statement of the "active ingredient(s)" with a
2615		-	list of those ingredients contained in the compound,
2616		-	substance or preparation.
2617		-	Beginning on January 1, 2014 (the effective date of Public
2618		-	Act 98-122) this amendatory Act of the 98th General Assembly,
2619		-	"prescription and nonprescription medicines and drugs"
2620		-	includes medical cannabis purchased from a registered
2621		-	dispensing organization under the Compassionate Use of Medical
2622		-	Cannabis Program Act.
2623		-	As used in this Section, "adult use cannabis" means
2624		-	cannabis subject to tax under the Cannabis Cultivation
2625		-
2626		-
2627		-	Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
2628		-	and does not include cannabis subject to tax under the
2629		-	Compassionate Use of Medical Cannabis Program Act.
2630		-	If the property that is purchased at retail from a
2631		-	retailer is acquired outside Illinois and used outside
2632		-	Illinois before being brought to Illinois for use here and is
2633		-	taxable under this Act, the "selling price" on which the tax is
2634		-	computed shall be reduced by an amount that represents a
2635		-	reasonable allowance for depreciation for the period of prior
2636		-	out-of-state use.
2637		-	(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
2638		-	102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.
2639		-	4-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;
2640		-	102-700, Article 65, Section 65-5, eff. 4-19-22; revised
2641		-	5-27-22.)
2642		-	(35 ILCS 105/3-40) (from Ch. 120, par. 439.3-40)
2643		-	Sec. 3-40. Gasohol. As used in this Act, "gasohol" means
2644		-	motor fuel that is a blend of denatured ethanol and gasoline
2645		-	that contains no more than 1.25% water by weight. Prior to
2646		-	January 1, 2024, the The blend must contain 90% gasoline and
2647		-	10% denatured ethanol. On and after January 1, 2024, the blend
2648		-	must contain 85% gasoline and 15% denatured ethanol. A maximum
2649		-	of one percent error factor in the amount of denatured ethanol
2650		-	used in the blend is allowable to compensate for blending
2651		-	equipment variations. Any person who knowingly sells or
2652		-
2653		-
2654		-	represents as gasohol any fuel that does not qualify as
2655		-	gasohol under this Act is guilty of a business offense and
2656		-	shall be fined not more than $100 for each day that the sale or
2657		-	representation takes place after notification from the
2658		-	Department of Agriculture that the fuel in question does not
2659		-	qualify as gasohol.
2660		-	(Source: P.A. 93-724, eff. 7-13-04.)
2661		-	(35 ILCS 105/3-44)
2662		-	Sec. 3-44. Majority blended ethanol fuel. Prior to January
2663		-	1, 2024, "majority "Majority blended ethanol fuel" means motor
2664		-	fuel that contains not less than 70% and no more than 90%
2665		-	denatured ethanol and no less than 10% and no more than 30%
2666		-	gasoline. On and after January 1, 2024, "majority blended
2667		-	ethanol fuel" means motor fuel that is capable of being used in
2668		-	the operation of flexible fuel vehicles and contains at least
2669		-	51% and not more than 83% ethanol, by volume, as specified in
2670		-	ASTM Standard D5798-11, and no less than 17% and no more than
2671		-	49% gasoline.
2672		-	(Source: P.A. 93-17, eff. 6-11-03.)
2673		-	(35 ILCS 105/3-44.3 new)
2674		-	Sec. 3-44.3. Mid-range ethanol blend. "Mid-range ethanol
2675		-	blend" means a blend of gasoline and denatured ethanol that
2676		-	contains at least 20% but less than 51% denatured ethanol.
2677		-
2678		-
2679		-	Section 10-10. The Service Use Tax Act is amended by
2680		-	changing Section 3-10 as follows:
2681		-	(35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
2682		-	Sec. 3-10. Rate of tax. Unless otherwise provided in this
2683		-	Section, the tax imposed by this Act is at the rate of 6.25% of
2684		-	the selling price of tangible personal property transferred as
2685		-	an incident to the sale of service, but, for the purpose of
2686		-	computing this tax, in no event shall the selling price be less
2687		-	than the cost price of the property to the serviceman.
2688		-	Beginning on July 1, 2000 and through December 31, 2000,
2689		-	with respect to motor fuel, as defined in Section 1.1 of the
2690		-	Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
2691		-	the Use Tax Act, the tax is imposed at the rate of 1.25%.
2692		-	With respect to gasohol, as defined in the Use Tax Act, the
2693		-	tax imposed by this Act applies to (i) 70% of the selling price
2694		-	of property transferred as an incident to the sale of service
2695		-	on or after January 1, 1990, and before July 1, 2003, (ii) 80%
2696		-	of the selling price of property transferred as an incident to
2697		-	the sale of service on or after July 1, 2003 and on or before
2698		-	July 1, 2017, and (iii) 100% of the selling price of property
2699		-	transferred as an incident to the sale of service after July 1,
2700		-	2017 and before January 1, 2024, (iv) 90% of the selling price
2701		-	of property transferred as an incident to the sale of service
2702		-	on or after January 1, 2024 and on or before December 31, 2028,
2703		-	and (v) 100% of the selling price of property transferred as an
2704		-
2705		-
2706		-	incident to the sale of service after December 31, 2028
2707		-	thereafter. If, at any time, however, the tax under this Act on
2708		-	sales of gasohol, as defined in the Use Tax Act, is imposed at
2709		-	the rate of 1.25%, then the tax imposed by this Act applies to
2710		-	100% of the proceeds of sales of gasohol made during that time.
2711		-	With respect to mid-range ethanol blends, as defined in
2712		-	Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
2713		-	applies to (i) 80% of the selling price of property
2714		-	transferred as an incident to the sale of service on or after
2715		-	January 1, 2024 and on or before December 31, 2028 and (ii)
2716		-	100% of the selling price of property transferred as an
2717		-	incident to the sale of service after December 31, 2028. If, at
2718		-	any time, however, the tax under this Act on sales of mid-range
2719		-	ethanol blends is imposed at the rate of 1.25%, then the tax
2720		-	imposed by this Act applies to 100% of the selling price of
2721		-	mid-range ethanol blends transferred as an incident to the
2722		-	sale of service during that time.
2723		-	With respect to majority blended ethanol fuel, as defined
2724		-	in the Use Tax Act, the tax imposed by this Act does not apply
2725		-	to the selling price of property transferred as an incident to
2726		-	the sale of service on or after July 1, 2003 and on or before
2727		-	December 31, 2028 December 31, 2023 but applies to 100% of the
2728		-	selling price thereafter.
2729		-	With respect to biodiesel blends, as defined in the Use
2730		-	Tax Act, with no less than 1% and no more than 10% biodiesel,
2731		-	the tax imposed by this Act applies to (i) 80% of the selling
2732		-
2733		-
2734		-	price of property transferred as an incident to the sale of
2735		-	service on or after July 1, 2003 and on or before December 31,
2736		-	2018 and (ii) 100% of the proceeds of the selling price after
2737		-	December 31, 2018 and before January 1, 2024. On and after
2738		-	January 1, 2024 and on or before December 31, 2030, the
2739		-	taxation of biodiesel, renewable diesel, and biodiesel blends
2740		-	shall be as provided in Section 3-5.1 of the Use Tax Act. If,
2741		-	at any time, however, the tax under this Act on sales of
2742		-	biodiesel blends, as defined in the Use Tax Act, with no less
2743		-	than 1% and no more than 10% biodiesel is imposed at the rate
2744		-	of 1.25%, then the tax imposed by this Act applies to 100% of
2745		-	the proceeds of sales of biodiesel blends with no less than 1%
2746		-	and no more than 10% biodiesel made during that time.
2747		-	With respect to biodiesel, as defined in the Use Tax Act,
2748		-	and biodiesel blends, as defined in the Use Tax Act, with more
2749		-	than 10% but no more than 99% biodiesel, the tax imposed by
2750		-	this Act does not apply to the proceeds of the selling price of
2751		-	property transferred as an incident to the sale of service on
2752		-	or after July 1, 2003 and on or before December 31, 2023. On
2753		-	and after January 1, 2024 and on or before December 31, 2030,
2754		-	the taxation of biodiesel, renewable diesel, and biodiesel
2755		-	blends shall be as provided in Section 3-5.1 of the Use Tax
2756		-	Act.
2757		-	At the election of any registered serviceman made for each
2758		-	fiscal year, sales of service in which the aggregate annual
2759		-	cost price of tangible personal property transferred as an
2760		-
2761		-
2762		-	incident to the sales of service is less than 35%, or 75% in
2763		-	the case of servicemen transferring prescription drugs or
2764		-	servicemen engaged in graphic arts production, of the
2765		-	aggregate annual total gross receipts from all sales of
2766		-	service, the tax imposed by this Act shall be based on the
2767		-	serviceman's cost price of the tangible personal property
2768		-	transferred as an incident to the sale of those services.
2769		-	Until July 1, 2022 and beginning again on July 1, 2023, the
2770		-	tax shall be imposed at the rate of 1% on food prepared for
2771		-	immediate consumption and transferred incident to a sale of
2772		-	service subject to this Act or the Service Occupation Tax Act
2773		-	by an entity licensed under the Hospital Licensing Act, the
2774		-	Nursing Home Care Act, the Assisted Living and Shared Housing
2775		-	Act, the ID/DD Community Care Act, the MC/DD Act, the
2776		-	Specialized Mental Health Rehabilitation Act of 2013, or the
2777		-	Child Care Act of 1969, or an entity that holds a permit issued
2778		-	pursuant to the Life Care Facilities Act. Until July 1, 2022
2779		-	and beginning again on July 1, 2023, the tax shall also be
2780		-	imposed at the rate of 1% on food for human consumption that is
2781		-	to be consumed off the premises where it is sold (other than
2782		-	alcoholic beverages, food consisting of or infused with adult
2783		-	use cannabis, soft drinks, and food that has been prepared for
2784		-	immediate consumption and is not otherwise included in this
2785		-	paragraph).
2786		-	Beginning on July 1, 2022 and until July 1, 2023, the tax
2787		-	shall be imposed at the rate of 0% on food prepared for
2788		-
2789		-
2790		-	immediate consumption and transferred incident to a sale of
2791		-	service subject to this Act or the Service Occupation Tax Act
2792		-	by an entity licensed under the Hospital Licensing Act, the
2793		-	Nursing Home Care Act, the Assisted Living and Shared Housing
2794		-	Act, the ID/DD Community Care Act, the MC/DD Act, the
2795		-	Specialized Mental Health Rehabilitation Act of 2013, or the
2796		-	Child Care Act of 1969, or an entity that holds a permit issued
2797		-	pursuant to the Life Care Facilities Act. Beginning on July 1,
2798		-	2022 and until July 1, 2023, the tax shall also be imposed at
2799		-	the rate of 0% on food for human consumption that is to be
2800		-	consumed off the premises where it is sold (other than
2801		-	alcoholic beverages, food consisting of or infused with adult
2802		-	use cannabis, soft drinks, and food that has been prepared for
2803		-	immediate consumption and is not otherwise included in this
2804		-	paragraph).
2805		-	The tax shall also be imposed at the rate of 1% on
2806		-	prescription and nonprescription medicines, drugs, medical
2807		-	appliances, products classified as Class III medical devices
2808		-	by the United States Food and Drug Administration that are
2809		-	used for cancer treatment pursuant to a prescription, as well
2810		-	as any accessories and components related to those devices,
2811		-	modifications to a motor vehicle for the purpose of rendering
2812		-	it usable by a person with a disability, and insulin, blood
2813		-	sugar testing materials, syringes, and needles used by human
2814		-	diabetics. For the purposes of this Section, until September
2815		-	1, 2009: the term "soft drinks" means any complete, finished,
2816		-
2817		-
2818		-	ready-to-use, non-alcoholic drink, whether carbonated or not,
2819		-	including, but not limited to, soda water, cola, fruit juice,
2820		-	vegetable juice, carbonated water, and all other preparations
2821		-	commonly known as soft drinks of whatever kind or description
2822		-	that are contained in any closed or sealed bottle, can,
2823		-	carton, or container, regardless of size; but "soft drinks"
2824		-	does not include coffee, tea, non-carbonated water, infant
2825		-	formula, milk or milk products as defined in the Grade A
2826		-	Pasteurized Milk and Milk Products Act, or drinks containing
2827		-	50% or more natural fruit or vegetable juice.
2828		-	Notwithstanding any other provisions of this Act,
2829		-	beginning September 1, 2009, "soft drinks" means non-alcoholic
2830		-	beverages that contain natural or artificial sweeteners. "Soft
2831		-	drinks" does do not include beverages that contain milk or
2832		-	milk products, soy, rice or similar milk substitutes, or
2833		-	greater than 50% of vegetable or fruit juice by volume.
2834		-	Until August 1, 2009, and notwithstanding any other
2835		-	provisions of this Act, "food for human consumption that is to
2836		-	be consumed off the premises where it is sold" includes all
2837		-	food sold through a vending machine, except soft drinks and
2838		-	food products that are dispensed hot from a vending machine,
2839		-	regardless of the location of the vending machine. Beginning
2840		-	August 1, 2009, and notwithstanding any other provisions of
2841		-	this Act, "food for human consumption that is to be consumed
2842		-	off the premises where it is sold" includes all food sold
2843		-	through a vending machine, except soft drinks, candy, and food
2844		-
2845		-
2846		-	products that are dispensed hot from a vending machine,
2847		-	regardless of the location of the vending machine.
2848		-	Notwithstanding any other provisions of this Act,
2849		-	beginning September 1, 2009, "food for human consumption that
2850		-	is to be consumed off the premises where it is sold" does not
2851		-	include candy. For purposes of this Section, "candy" means a
2852		-	preparation of sugar, honey, or other natural or artificial
2853		-	sweeteners in combination with chocolate, fruits, nuts or
2854		-	other ingredients or flavorings in the form of bars, drops, or
2855		-	pieces. "Candy" does not include any preparation that contains
2856		-	flour or requires refrigeration.
2857		-	Notwithstanding any other provisions of this Act,
2858		-	beginning September 1, 2009, "nonprescription medicines and
2859		-	drugs" does not include grooming and hygiene products. For
2860		-	purposes of this Section, "grooming and hygiene products"
2861		-	includes, but is not limited to, soaps and cleaning solutions,
2862		-	shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
2863		-	lotions and screens, unless those products are available by
2864		-	prescription only, regardless of whether the products meet the
2865		-	definition of "over-the-counter-drugs". For the purposes of
2866		-	this paragraph, "over-the-counter-drug" means a drug for human
2867		-	use that contains a label that identifies the product as a drug
2868		-	as required by 21 CFR C.F.R. 201.66. The
2869		-	"over-the-counter-drug" label includes:
2870		-	(A) a A "Drug Facts" panel; or
2871		-	(B) a A statement of the "active ingredient(s)" with a
2872		-
2873		-
2874		-	list of those ingredients contained in the compound,
2875		-	substance or preparation.
2876		-	Beginning on January 1, 2014 (the effective date of Public
2877		-	Act 98-122), "prescription and nonprescription medicines and
2878		-	drugs" includes medical cannabis purchased from a registered
2879		-	dispensing organization under the Compassionate Use of Medical
2880		-	Cannabis Program Act.
2881		-	As used in this Section, "adult use cannabis" means
2882		-	cannabis subject to tax under the Cannabis Cultivation
2883		-	Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
2884		-	and does not include cannabis subject to tax under the
2885		-	Compassionate Use of Medical Cannabis Program Act.
2886		-	If the property that is acquired from a serviceman is
2887		-	acquired outside Illinois and used outside Illinois before
2888		-	being brought to Illinois for use here and is taxable under
2889		-	this Act, the "selling price" on which the tax is computed
2890		-	shall be reduced by an amount that represents a reasonable
2891		-	allowance for depreciation for the period of prior
2892		-	out-of-state use.
2893		-	(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
2894		-	102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
2895		-	20, Section 20-10, eff. 4-19-22; 102-700, Article 60, Section
2896		-	60-20, eff. 4-19-22; revised 6-1-22.)
2897		-	Section 10-15. The Service Occupation Tax Act is amended
2898		-	by changing Section 3-10 as follows:
2899		-
2900		-
2901		-	(35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
2902		-	Sec. 3-10. Rate of tax. Unless otherwise provided in this
2903		-	Section, the tax imposed by this Act is at the rate of 6.25% of
2904		-	the "selling price", as defined in Section 2 of the Service Use
2905		-	Tax Act, of the tangible personal property. For the purpose of
2906		-	computing this tax, in no event shall the "selling price" be
2907		-	less than the cost price to the serviceman of the tangible
2908		-	personal property transferred. The selling price of each item
2909		-	of tangible personal property transferred as an incident of a
2910		-	sale of service may be shown as a distinct and separate item on
2911		-	the serviceman's billing to the service customer. If the
2912		-	selling price is not so shown, the selling price of the
2913		-	tangible personal property is deemed to be 50% of the
2914		-	serviceman's entire billing to the service customer. When,
2915		-	however, a serviceman contracts to design, develop, and
2916		-	produce special order machinery or equipment, the tax imposed
2917		-	by this Act shall be based on the serviceman's cost price of
2918		-	the tangible personal property transferred incident to the
2919		-	completion of the contract.
2920		-	Beginning on July 1, 2000 and through December 31, 2000,
2921		-	with respect to motor fuel, as defined in Section 1.1 of the
2922		-	Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
2923		-	the Use Tax Act, the tax is imposed at the rate of 1.25%.
2924		-	With respect to gasohol, as defined in the Use Tax Act, the
2925		-	tax imposed by this Act shall apply to (i) 70% of the cost
2926		-
2927		-
2928		-	price of property transferred as an incident to the sale of
2929		-	service on or after January 1, 1990, and before July 1, 2003,
2930		-	(ii) 80% of the selling price of property transferred as an
2931		-	incident to the sale of service on or after July 1, 2003 and on
2932		-	or before July 1, 2017, and (iii) 100% of the selling price of
2933		-	property transferred as an incident to the sale of service
2934		-	after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
2935		-	the selling price of property transferred as an incident to
2936		-	the sale of service on or after January 1, 2024 and on or
2937		-	before December 31, 2028, and (v) 100% of the selling price of
2938		-	property transferred as an incident to the sale of service
2939		-	after December 31, 2028 cost price thereafter. If, at any
2940		-	time, however, the tax under this Act on sales of gasohol, as
2941		-	defined in the Use Tax Act, is imposed at the rate of 1.25%,
2942		-	then the tax imposed by this Act applies to 100% of the
2943		-	proceeds of sales of gasohol made during that time.
2944		-	With respect to mid-range ethanol blends, as defined in
2945		-	Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
2946		-	applies to (i) 80% of the selling price of property
2947		-	transferred as an incident to the sale of service on or after
2948		-	January 1, 2024 and on or before December 31, 2028 and (ii)
2949		-	100% of the selling price of property transferred as an
2950		-	incident to the sale of service after December 31, 2028. If, at
2951		-	any time, however, the tax under this Act on sales of mid-range
2952		-	ethanol blends is imposed at the rate of 1.25%, then the tax
2953		-	imposed by this Act applies to 100% of the selling price of
2954		-
2955		-
2956		-	mid-range ethanol blends transferred as an incident to the
2957		-	sale of service during that time.
2958		-	With respect to majority blended ethanol fuel, as defined
2959		-	in the Use Tax Act, the tax imposed by this Act does not apply
2960		-	to the selling price of property transferred as an incident to
2961		-	the sale of service on or after July 1, 2003 and on or before
2962		-	December 31, 2028 December 31, 2023 but applies to 100% of the
2963		-	selling price thereafter.
2964		-	With respect to biodiesel blends, as defined in the Use
2965		-	Tax Act, with no less than 1% and no more than 10% biodiesel,
2966		-	the tax imposed by this Act applies to (i) 80% of the selling
2967		-	price of property transferred as an incident to the sale of
2968		-	service on or after July 1, 2003 and on or before December 31,
2969		-	2018 and (ii) 100% of the proceeds of the selling price after
2970		-	December 31, 2018 and before January 1, 2024. On and after
2971		-	January 1, 2024 and on or before December 31, 2030, the
2972		-	taxation of biodiesel, renewable diesel, and biodiesel blends
2973		-	shall be as provided in Section 3-5.1 of the Use Tax Act. If,
2974		-	at any time, however, the tax under this Act on sales of
2975		-	biodiesel blends, as defined in the Use Tax Act, with no less
2976		-	than 1% and no more than 10% biodiesel is imposed at the rate
2977		-	of 1.25%, then the tax imposed by this Act applies to 100% of
2978		-	the proceeds of sales of biodiesel blends with no less than 1%
2979		-	and no more than 10% biodiesel made during that time.
2980		-	With respect to biodiesel, as defined in the Use Tax Act,
2981		-	and biodiesel blends, as defined in the Use Tax Act, with more
2982		-
2983		-
2984		-	than 10% but no more than 99% biodiesel material, the tax
2985		-	imposed by this Act does not apply to the proceeds of the
2986		-	selling price of property transferred as an incident to the
2987		-	sale of service on or after July 1, 2003 and on or before
2988		-	December 31, 2023. On and after January 1, 2024 and on or
2989		-	before December 31, 2030, the taxation of biodiesel, renewable
2990		-	diesel, and biodiesel blends shall be as provided in Section
2991		-	3-5.1 of the Use Tax Act.
2992		-	At the election of any registered serviceman made for each
2993		-	fiscal year, sales of service in which the aggregate annual
2994		-	cost price of tangible personal property transferred as an
2995		-	incident to the sales of service is less than 35%, or 75% in
2996		-	the case of servicemen transferring prescription drugs or
2997		-	servicemen engaged in graphic arts production, of the
2998		-	aggregate annual total gross receipts from all sales of
2999		-	service, the tax imposed by this Act shall be based on the
3000		-	serviceman's cost price of the tangible personal property
3001		-	transferred incident to the sale of those services.
3002		-	Until July 1, 2022 and beginning again on July 1, 2023, the
3003		-	tax shall be imposed at the rate of 1% on food prepared for
3004		-	immediate consumption and transferred incident to a sale of
3005		-	service subject to this Act or the Service Use Tax Act by an
3006		-	entity licensed under the Hospital Licensing Act, the Nursing
3007		-	Home Care Act, the Assisted Living and Shared Housing Act, the
3008		-	ID/DD Community Care Act, the MC/DD Act, the Specialized
3009		-	Mental Health Rehabilitation Act of 2013, or the Child Care
3010		-
3011		-
3012		-	Act of 1969, or an entity that holds a permit issued pursuant
3013		-	to the Life Care Facilities Act. Until July 1, 2022 and
3014		-	beginning again on July 1, 2023, the tax shall also be imposed
3015		-	at the rate of 1% on food for human consumption that is to be
3016		-	consumed off the premises where it is sold (other than
3017		-	alcoholic beverages, food consisting of or infused with adult
3018		-	use cannabis, soft drinks, and food that has been prepared for
3019		-	immediate consumption and is not otherwise included in this
3020		-	paragraph).
3021		-	Beginning on July 1, 2022 and until July 1, 2023, the tax
3022		-	shall be imposed at the rate of 0% on food prepared for
3023		-	immediate consumption and transferred incident to a sale of
3024		-	service subject to this Act or the Service Use Tax Act by an
3025		-	entity licensed under the Hospital Licensing Act, the Nursing
3026		-	Home Care Act, the Assisted Living and Shared Housing Act, the
3027		-	ID/DD Community Care Act, the MC/DD Act, the Specialized
3028		-	Mental Health Rehabilitation Act of 2013, or the Child Care
3029		-	Act of 1969, or an entity that holds a permit issued pursuant
3030		-	to the Life Care Facilities Act. Beginning July 1, 2022 and
3031		-	until July 1, 2023, the tax shall also be imposed at the rate
3032		-	of 0% on food for human consumption that is to be consumed off
3033		-	the premises where it is sold (other than alcoholic beverages,
3034		-	food consisting of or infused with adult use cannabis, soft
3035		-	drinks, and food that has been prepared for immediate
3036		-	consumption and is not otherwise included in this paragraph).
3037		-	The tax shall also be imposed at the rate of 1% on
3038		-
3039		-
3040		-	prescription and nonprescription medicines, drugs, medical
3041		-	appliances, products classified as Class III medical devices
3042		-	by the United States Food and Drug Administration that are
3043		-	used for cancer treatment pursuant to a prescription, as well
3044		-	as any accessories and components related to those devices,
3045		-	modifications to a motor vehicle for the purpose of rendering
3046		-	it usable by a person with a disability, and insulin, blood
3047		-	sugar testing materials, syringes, and needles used by human
3048		-	diabetics. For the purposes of this Section, until September
3049		-	1, 2009: the term "soft drinks" means any complete, finished,
3050		-	ready-to-use, non-alcoholic drink, whether carbonated or not,
3051		-	including, but not limited to, soda water, cola, fruit juice,
3052		-	vegetable juice, carbonated water, and all other preparations
3053		-	commonly known as soft drinks of whatever kind or description
3054		-	that are contained in any closed or sealed can, carton, or
3055		-	container, regardless of size; but "soft drinks" does not
3056		-	include coffee, tea, non-carbonated water, infant formula,
3057		-	milk or milk products as defined in the Grade A Pasteurized
3058		-	Milk and Milk Products Act, or drinks containing 50% or more
3059		-	natural fruit or vegetable juice.
3060		-	Notwithstanding any other provisions of this Act,
3061		-	beginning September 1, 2009, "soft drinks" means non-alcoholic
3062		-	beverages that contain natural or artificial sweeteners. "Soft
3063		-	drinks" does do not include beverages that contain milk or
3064		-	milk products, soy, rice or similar milk substitutes, or
3065		-	greater than 50% of vegetable or fruit juice by volume.
3066		-
3067		-
3068		-	Until August 1, 2009, and notwithstanding any other
3069		-	provisions of this Act, "food for human consumption that is to
3070		-	be consumed off the premises where it is sold" includes all
3071		-	food sold through a vending machine, except soft drinks and
3072		-	food products that are dispensed hot from a vending machine,
3073		-	regardless of the location of the vending machine. Beginning
3074		-	August 1, 2009, and notwithstanding any other provisions of
3075		-	this Act, "food for human consumption that is to be consumed
3076		-	off the premises where it is sold" includes all food sold
3077		-	through a vending machine, except soft drinks, candy, and food
3078		-	products that are dispensed hot from a vending machine,
3079		-	regardless of the location of the vending machine.
3080		-	Notwithstanding any other provisions of this Act,
3081		-	beginning September 1, 2009, "food for human consumption that
3082		-	is to be consumed off the premises where it is sold" does not
3083		-	include candy. For purposes of this Section, "candy" means a
3084		-	preparation of sugar, honey, or other natural or artificial
3085		-	sweeteners in combination with chocolate, fruits, nuts or
3086		-	other ingredients or flavorings in the form of bars, drops, or
3087		-	pieces. "Candy" does not include any preparation that contains
3088		-	flour or requires refrigeration.
3089		-	Notwithstanding any other provisions of this Act,
3090		-	beginning September 1, 2009, "nonprescription medicines and
3091		-	drugs" does not include grooming and hygiene products. For
3092		-	purposes of this Section, "grooming and hygiene products"
3093		-	includes, but is not limited to, soaps and cleaning solutions,
3094		-
3095		-
3096		-	shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
3097		-	lotions and screens, unless those products are available by
3098		-	prescription only, regardless of whether the products meet the
3099		-	definition of "over-the-counter-drugs". For the purposes of
3100		-	this paragraph, "over-the-counter-drug" means a drug for human
3101		-	use that contains a label that identifies the product as a drug
3102		-	as required by 21 CFR C.F.R. 201.66. The
3103		-	"over-the-counter-drug" label includes:
3104		-	(A) a A "Drug Facts" panel; or
3105		-	(B) a A statement of the "active ingredient(s)" with a
3106		-	list of those ingredients contained in the compound,
3107		-	substance or preparation.
3108		-	Beginning on January 1, 2014 (the effective date of Public
3109		-	Act 98-122), "prescription and nonprescription medicines and
3110		-	drugs" includes medical cannabis purchased from a registered
3111		-	dispensing organization under the Compassionate Use of Medical
3112		-	Cannabis Program Act.
3113		-	As used in this Section, "adult use cannabis" means
3114		-	cannabis subject to tax under the Cannabis Cultivation
3115		-	Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
3116		-	and does not include cannabis subject to tax under the
3117		-	Compassionate Use of Medical Cannabis Program Act.
3118		-	(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
3119		-	102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
3120		-	20, Section 20-15, eff. 4-19-22; 102-700, Article 60, Section
3121		-	60-25, eff. 4-19-22; revised 6-1-22.)
3122		-
3123		-
3124		-	Section 10-20. The Retailers' Occupation Tax Act is
3125		-	amended by changing Sections 2-10 and 2d as follows:
3126		-	(35 ILCS 120/2-10)
3127		-	Sec. 2-10. Rate of tax. Unless otherwise provided in this
3128		-	Section, the tax imposed by this Act is at the rate of 6.25% of
3129		-	gross receipts from sales of tangible personal property made
3130		-	in the course of business.
3131		-	Beginning on July 1, 2000 and through December 31, 2000,
3132		-	with respect to motor fuel, as defined in Section 1.1 of the
3133		-	Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
3134		-	the Use Tax Act, the tax is imposed at the rate of 1.25%.
3135		-	Beginning on August 6, 2010 through August 15, 2010, and
3136		-	beginning again on August 5, 2022 through August 14, 2022,
3137		-	with respect to sales tax holiday items as defined in Section
3138		-	2-8 of this Act, the tax is imposed at the rate of 1.25%.
3139		-	Within 14 days after July 1, 2000 (the effective date of
3140		-	Public Act 91-872) this amendatory Act of the 91st General
3141		-	Assembly, each retailer of motor fuel and gasohol shall cause
3142		-	the following notice to be posted in a prominently visible
3143		-	place on each retail dispensing device that is used to
3144		-	dispense motor fuel or gasohol in the State of Illinois: "As of
3145		-	July 1, 2000, the State of Illinois has eliminated the State's
3146		-	share of sales tax on motor fuel and gasohol through December
3147		-	31, 2000. The price on this pump should reflect the
3148		-
3149		-
3150		-	elimination of the tax." The notice shall be printed in bold
3151		-	print on a sign that is no smaller than 4 inches by 8 inches.
3152		-	The sign shall be clearly visible to customers. Any retailer
3153		-	who fails to post or maintain a required sign through December
3154		-	31, 2000 is guilty of a petty offense for which the fine shall
3155		-	be $500 per day per each retail premises where a violation
3156		-	occurs.
3157		-	With respect to gasohol, as defined in the Use Tax Act, the
3158		-	tax imposed by this Act applies to (i) 70% of the proceeds of
3159		-	sales made on or after January 1, 1990, and before July 1,
3160		-	2003, (ii) 80% of the proceeds of sales made on or after July
3161		-	1, 2003 and on or before July 1, 2017, and (iii) 100% of the
3162		-	proceeds of sales made after July 1, 2017 and prior to January
3163		-	1, 2024, (iv) 90% of the proceeds of sales made on or after
3164		-	January 1, 2024 and on or before December 31, 2028, and (v)
3165		-	100% of the proceeds of sales made after December 31, 2028
3166		-	thereafter. If, at any time, however, the tax under this Act on
3167		-	sales of gasohol, as defined in the Use Tax Act, is imposed at
3168		-	the rate of 1.25%, then the tax imposed by this Act applies to
3169		-	100% of the proceeds of sales of gasohol made during that time.
3170		-	With respect to mid-range ethanol blends, as defined in
3171		-	Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
3172		-	applies to (i) 80% of the proceeds of sales made on or after
3173		-	January 1, 2024 and on or before December 31, 2028 and (ii)
3174		-	100% of the proceeds of sales made after December 31, 2028. If,
3175		-	at any time, however, the tax under this Act on sales of
3176		-
3177		-
3178		-	mid-range ethanol blends is imposed at the rate of 1.25%, then
3179		-	the tax imposed by this Act applies to 100% of the proceeds of
3180		-	sales of mid-range ethanol blends made during that time.
3181		-	With respect to majority blended ethanol fuel, as defined
3182		-	in the Use Tax Act, the tax imposed by this Act does not apply
3183		-	to the proceeds of sales made on or after July 1, 2003 and on
3184		-	or before December 31, 2028 December 31, 2023 but applies to
3185		-	100% of the proceeds of sales made thereafter.
3186		-	With respect to biodiesel blends, as defined in the Use
3187		-	Tax Act, with no less than 1% and no more than 10% biodiesel,
3188		-	the tax imposed by this Act applies to (i) 80% of the proceeds
3189		-	of sales made on or after July 1, 2003 and on or before
3190		-	December 31, 2018 and (ii) 100% of the proceeds of sales made
3191		-	after December 31, 2018 and before January 1, 2024. On and
3192		-	after January 1, 2024 and on or before December 31, 2030, the
3193		-	taxation of biodiesel, renewable diesel, and biodiesel blends
3194		-	shall be as provided in Section 3-5.1 of the Use Tax Act. If,
3195		-	at any time, however, the tax under this Act on sales of
3196		-	biodiesel blends, as defined in the Use Tax Act, with no less
3197		-	than 1% and no more than 10% biodiesel is imposed at the rate
3198		-	of 1.25%, then the tax imposed by this Act applies to 100% of
3199		-	the proceeds of sales of biodiesel blends with no less than 1%
3200		-	and no more than 10% biodiesel made during that time.
3201		-	With respect to biodiesel, as defined in the Use Tax Act,
3202		-	and biodiesel blends, as defined in the Use Tax Act, with more
3203		-	than 10% but no more than 99% biodiesel, the tax imposed by
3204		-
3205		-
3206		-	this Act does not apply to the proceeds of sales made on or
3207		-	after July 1, 2003 and on or before December 31, 2023. On and
3208		-	after January 1, 2024 and on or before December 31, 2030, the
3209		-	taxation of biodiesel, renewable diesel, and biodiesel blends
3210		-	shall be as provided in Section 3-5.1 of the Use Tax Act.
3211		-	Until July 1, 2022 and beginning again on July 1, 2023,
3212		-	with respect to food for human consumption that is to be
3213		-	consumed off the premises where it is sold (other than
3214		-	alcoholic beverages, food consisting of or infused with adult
3215		-	use cannabis, soft drinks, and food that has been prepared for
3216		-	immediate consumption), the tax is imposed at the rate of 1%.
3217		-	Beginning July 1, 2022 and until July 1, 2023, with respect to
3218		-	food for human consumption that is to be consumed off the
3219		-	premises where it is sold (other than alcoholic beverages,
3220		-	food consisting of or infused with adult use cannabis, soft
3221		-	drinks, and food that has been prepared for immediate
3222		-	consumption), the tax is imposed at the rate of 0%.
3223		-	With respect to prescription and nonprescription
3224		-	medicines, drugs, medical appliances, products classified as
3225		-	Class III medical devices by the United States Food and Drug
3226		-	Administration that are used for cancer treatment pursuant to
3227		-	a prescription, as well as any accessories and components
3228		-	related to those devices, modifications to a motor vehicle for
3229		-	the purpose of rendering it usable by a person with a
3230		-	disability, and insulin, blood sugar testing materials,
3231		-	syringes, and needles used by human diabetics, the tax is
3232		-
3233		-
3234		-	imposed at the rate of 1%. For the purposes of this Section,
3235		-	until September 1, 2009: the term "soft drinks" means any
3236		-	complete, finished, ready-to-use, non-alcoholic drink, whether
3237		-	carbonated or not, including, but not limited to, soda water,
3238		-	cola, fruit juice, vegetable juice, carbonated water, and all
3239		-	other preparations commonly known as soft drinks of whatever
3240		-	kind or description that are contained in any closed or sealed
3241		-	bottle, can, carton, or container, regardless of size; but
3242		-	"soft drinks" does not include coffee, tea, non-carbonated
3243		-	water, infant formula, milk or milk products as defined in the
3244		-	Grade A Pasteurized Milk and Milk Products Act, or drinks
3245		-	containing 50% or more natural fruit or vegetable juice.
3246		-	Notwithstanding any other provisions of this Act,
3247		-	beginning September 1, 2009, "soft drinks" means non-alcoholic
3248		-	beverages that contain natural or artificial sweeteners. "Soft
3249		-	drinks" does do not include beverages that contain milk or
3250		-	milk products, soy, rice or similar milk substitutes, or
3251		-	greater than 50% of vegetable or fruit juice by volume.
3252		-	Until August 1, 2009, and notwithstanding any other
3253		-	provisions of this Act, "food for human consumption that is to
3254		-	be consumed off the premises where it is sold" includes all
3255		-	food sold through a vending machine, except soft drinks and
3256		-	food products that are dispensed hot from a vending machine,
3257		-	regardless of the location of the vending machine. Beginning
3258		-	August 1, 2009, and notwithstanding any other provisions of
3259		-	this Act, "food for human consumption that is to be consumed
3260		-
3261		-
3262		-	off the premises where it is sold" includes all food sold
3263		-	through a vending machine, except soft drinks, candy, and food
3264		-	products that are dispensed hot from a vending machine,
3265		-	regardless of the location of the vending machine.
3266		-	Notwithstanding any other provisions of this Act,
3267		-	beginning September 1, 2009, "food for human consumption that
3268		-	is to be consumed off the premises where it is sold" does not
3269		-	include candy. For purposes of this Section, "candy" means a
3270		-	preparation of sugar, honey, or other natural or artificial
3271		-	sweeteners in combination with chocolate, fruits, nuts or
3272		-	other ingredients or flavorings in the form of bars, drops, or
3273		-	pieces. "Candy" does not include any preparation that contains
3274		-	flour or requires refrigeration.
3275		-	Notwithstanding any other provisions of this Act,
3276		-	beginning September 1, 2009, "nonprescription medicines and
3277		-	drugs" does not include grooming and hygiene products. For
3278		-	purposes of this Section, "grooming and hygiene products"
3279		-	includes, but is not limited to, soaps and cleaning solutions,
3280		-	shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
3281		-	lotions and screens, unless those products are available by
3282		-	prescription only, regardless of whether the products meet the
3283		-	definition of "over-the-counter-drugs". For the purposes of
3284		-	this paragraph, "over-the-counter-drug" means a drug for human
3285		-	use that contains a label that identifies the product as a drug
3286		-	as required by 21 CFR C.F.R. 201.66. The
3287		-	"over-the-counter-drug" label includes:
3288		-
3289		-
3290		-	(A) a A "Drug Facts" panel; or
3291		-	(B) a A statement of the "active ingredient(s)" with a
3292		-	list of those ingredients contained in the compound,
3293		-	substance or preparation.
3294		-	Beginning on January 1, 2014 (the effective date of Public
3295		-	Act 98-122) this amendatory Act of the 98th General Assembly,
3296		-	"prescription and nonprescription medicines and drugs"
3297		-	includes medical cannabis purchased from a registered
3298		-	dispensing organization under the Compassionate Use of Medical
3299		-	Cannabis Program Act.
3300		-	As used in this Section, "adult use cannabis" means
3301		-	cannabis subject to tax under the Cannabis Cultivation
3302		-	Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
3303		-	and does not include cannabis subject to tax under the
3304		-	Compassionate Use of Medical Cannabis Program Act.
3305		-	(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
3306		-	102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff.
3307		-	4-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22;
3308		-	102-700, Article 65, Section 65-10, eff. 4-19-22; revised
3309		-	6-1-22.)
3310		-	(35 ILCS 120/2d) (from Ch. 120, par. 441d)
3311		-	Sec. 2d. Tax prepayment by motor fuel retailer.
3312		-	(a) Any person engaged in the business of selling motor
3313		-	fuel at retail, as defined in the Motor Fuel Tax Law, and who
3314		-	is not a licensed distributor or supplier, as defined in the
3315		-
3316		-
3317		-	Motor Fuel Tax Law, shall prepay to his or her distributor,
3318		-	supplier, or other reseller of motor fuel a portion of the tax
3319		-	imposed by this Act if the distributor, supplier, or other
3320		-	reseller of motor fuel is registered under Section 2a or
3321		-	Section 2c of this Act. The prepayment requirement provided
3322		-	for in this Section does not apply to liquid propane gas.
3323		-	(b) Beginning on July 1, 2000 and through December 31,
3324		-	2000, the Retailers' Occupation Tax paid to the distributor,
3325		-	supplier, or other reseller shall be an amount equal to $0.01
3326		-	per gallon of the motor fuel, except gasohol as defined in
3327		-	Section 2-10 of this Act which shall be an amount equal to
3328		-	$0.01 per gallon, purchased from the distributor, supplier, or
3329		-	other reseller.
3330		-	(c) Before July 1, 2000 and then beginning on January 1,
3331		-	2001 and through June 30, 2003, the Retailers' Occupation Tax
3332		-	paid to the distributor, supplier, or other reseller shall be
3333		-	an amount equal to $0.04 per gallon of the motor fuel, except
3334		-	gasohol as defined in Section 2-10 of this Act which shall be
3335		-	an amount equal to $0.03 per gallon, purchased from the
3336		-	distributor, supplier, or other reseller.
3337		-	(d) Beginning July 1, 2003 and through December 31, 2010,
3338		-	the Retailers' Occupation Tax paid to the distributor,
3339		-	supplier, or other reseller shall be an amount equal to $0.06
3340		-	per gallon of the motor fuel, except gasohol as defined in
3341		-	Section 2-10 of this Act which shall be an amount equal to
3342		-	$0.05 per gallon, purchased from the distributor, supplier, or
3343		-
3344		-
3345		-	other reseller.
3346		-	(e) Beginning on January 1, 2011 and thereafter, the
3347		-	Retailers' Occupation Tax paid to the distributor, supplier,
3348		-	or other reseller shall be at the rate established by the
3349		-	Department under this subsection. The rate shall be
3350		-	established by the Department on January 1 and July 1 of each
3351		-	year using the average selling price, as defined in Section 1
3352		-	of this Act, per gallon of motor fuel sold in the State during
3353		-	the previous 6 months and multiplying that amount by 6.25% to
3354		-	determine the cents per gallon rate. Beginning on January 1,
3355		-	2024 and through December 31, 2028, In the case of biodiesel
3356		-	blends, as defined in Section 3-42 of the Use Tax Act, with no
3357		-	less than 1% and no more than 10% biodiesel, and in the case of
3358		-	gasohol, as defined in Section 3-40 of the Use Tax Act, the
3359		-	rate shall be 90% 80% of the rate established by the Department
3360		-	under this subsection for motor fuel. Beginning on January 1,
3361		-	2024 and through December 31, 2028, in the case of mid-range
3362		-	ethanol blends, as defined in Section 3-44.3 of the Use Tax
3363		-	Act, the rate shall be 80% of the rate established by the
3364		-	Department under this subsection for motor fuel. The
3365		-	Department shall provide persons subject to this Section
3366		-	notice of the rate established under this subsection at least
3367		-	20 days prior to each January 1 and July 1. Publication of the
3368		-	established rate on the Department's internet website shall
3369		-	constitute sufficient notice under this Section. The
3370		-	Department may use data derived from independent surveys
3371		-
3372		-
3373		-	conducted or accumulated by third parties to determine the
3374		-	average selling price per gallon of motor fuel sold in the
3375		-	State.
3376		-	(f) Any person engaged in the business of selling motor
3377		-	fuel at retail shall be entitled to a credit against tax due
3378		-	under this Act in an amount equal to the tax paid to the
3379		-	distributor, supplier, or other reseller.
3380		-	(g) Every distributor, supplier, or other reseller
3381		-	registered as provided in Section 2a or Section 2c of this Act
3382		-	shall remit the prepaid tax on all motor fuel that is due from
3383		-	any person engaged in the business of selling at retail motor
3384		-	fuel with the returns filed under Section 2f or Section 3 of
3385		-	this Act, but the vendors discount provided in Section 3 shall
3386		-	not apply to the amount of prepaid tax that is remitted. Any
3387		-	distributor or supplier who fails to properly collect and
3388		-	remit the tax shall be liable for the tax. For purposes of this
3389		-	Section, the prepaid tax is due on invoiced gallons sold
3390		-	during a month by the 20th day of the following month.
3391		-	(Source: P.A. 96-1384, eff. 7-29-10.)
3392		-	ARTICLE 15. ELECTRIC GENERATION EQUIPMENT
3393		-	Section 15-5. The Use Tax Act is amended by changing
3394		-	Section 3-5 as follows:
3395		-	(35 ILCS 105/3-5)
3396		-
3397		-
3398		-	Sec. 3-5. Exemptions. Use of the following tangible
3399		-	personal property is exempt from the tax imposed by this Act:
3400		-	(1) Personal property purchased from a corporation,
3401		-	society, association, foundation, institution, or
3402		-	organization, other than a limited liability company, that is
3403		-	organized and operated as a not-for-profit service enterprise
3404		-	for the benefit of persons 65 years of age or older if the
3405		-	personal property was not purchased by the enterprise for the
3406		-	purpose of resale by the enterprise.
3407		-	(2) Personal property purchased by a not-for-profit
3408		-	Illinois county fair association for use in conducting,
3409		-	operating, or promoting the county fair.
3410		-	(3) Personal property purchased by a not-for-profit arts
3411		-	or cultural organization that establishes, by proof required
3412		-	by the Department by rule, that it has received an exemption
3413		-	under Section 501(c)(3) of the Internal Revenue Code and that
3414		-	is organized and operated primarily for the presentation or
3415		-	support of arts or cultural programming, activities, or
3416		-	services. These organizations include, but are not limited to,
3417		-	music and dramatic arts organizations such as symphony
3418		-	orchestras and theatrical groups, arts and cultural service
3419		-	organizations, local arts councils, visual arts organizations,
3420		-	and media arts organizations. On and after July 1, 2001 (the
3421		-	effective date of Public Act 92-35), however, an entity
3422		-	otherwise eligible for this exemption shall not make tax-free
3423		-	purchases unless it has an active identification number issued
3424		-
3425		-
3426		-	by the Department.
3427		-	(4) Personal property purchased by a governmental body, by
3428		-	a corporation, society, association, foundation, or
3429		-	institution organized and operated exclusively for charitable,
3430		-	religious, or educational purposes, or by a not-for-profit
3431		-	corporation, society, association, foundation, institution, or
3432		-	organization that has no compensated officers or employees and
3433		-	that is organized and operated primarily for the recreation of
3434		-	persons 55 years of age or older. A limited liability company
3435		-	may qualify for the exemption under this paragraph only if the
3436		-	limited liability company is organized and operated
3437		-	exclusively for educational purposes. On and after July 1,
3438		-	1987, however, no entity otherwise eligible for this exemption
3439		-	shall make tax-free purchases unless it has an active
3440		-	exemption identification number issued by the Department.
3441		-	(5) Until July 1, 2003, a passenger car that is a
3442		-	replacement vehicle to the extent that the purchase price of
3443		-	the car is subject to the Replacement Vehicle Tax.
3444		-	(6) Until July 1, 2003 and beginning again on September 1,
3445		-	2004 through August 30, 2014, graphic arts machinery and
3446		-	equipment, including repair and replacement parts, both new
3447		-	and used, and including that manufactured on special order,
3448		-	certified by the purchaser to be used primarily for graphic
3449		-	arts production, and including machinery and equipment
3450		-	purchased for lease. Equipment includes chemicals or chemicals
3451		-	acting as catalysts but only if the chemicals or chemicals
3452		-
3453		-
3454		-	acting as catalysts effect a direct and immediate change upon
3455		-	a graphic arts product. Beginning on July 1, 2017, graphic
3456		-	arts machinery and equipment is included in the manufacturing
3457		-	and assembling machinery and equipment exemption under
3458		-	paragraph (18).
3459		-	(7) Farm chemicals.
3460		-	(8) Legal tender, currency, medallions, or gold or silver
3461		-	coinage issued by the State of Illinois, the government of the
3462		-	United States of America, or the government of any foreign
3463		-	country, and bullion.
3464		-	(9) Personal property purchased from a teacher-sponsored
3465		-	student organization affiliated with an elementary or
3466		-	secondary school located in Illinois.
3467		-	(10) A motor vehicle that is used for automobile renting,
3468		-	as defined in the Automobile Renting Occupation and Use Tax
3469		-	Act.
3470		-	(11) Farm machinery and equipment, both new and used,
3471		-	including that manufactured on special order, certified by the
3472		-	purchaser to be used primarily for production agriculture or
3473		-	State or federal agricultural programs, including individual
3474		-	replacement parts for the machinery and equipment, including
3475		-	machinery and equipment purchased for lease, and including
3476		-	implements of husbandry defined in Section 1-130 of the
3477		-	Illinois Vehicle Code, farm machinery and agricultural
3478		-	chemical and fertilizer spreaders, and nurse wagons required
3479		-	to be registered under Section 3-809 of the Illinois Vehicle
3480		-
3481		-
3482		-	Code, but excluding other motor vehicles required to be
3483		-	registered under the Illinois Vehicle Code. Horticultural
3484		-	polyhouses or hoop houses used for propagating, growing, or
3485		-	overwintering plants shall be considered farm machinery and
3486		-	equipment under this item (11). Agricultural chemical tender
3487		-	tanks and dry boxes shall include units sold separately from a
3488		-	motor vehicle required to be licensed and units sold mounted
3489		-	on a motor vehicle required to be licensed if the selling price
3490		-	of the tender is separately stated.
3491		-	Farm machinery and equipment shall include precision
3492		-	farming equipment that is installed or purchased to be
3493		-	installed on farm machinery and equipment including, but not
3494		-	limited to, tractors, harvesters, sprayers, planters, seeders,
3495		-	or spreaders. Precision farming equipment includes, but is not
3496		-	limited to, soil testing sensors, computers, monitors,
3497		-	software, global positioning and mapping systems, and other
3498		-	such equipment.
3499		-	Farm machinery and equipment also includes computers,
3500		-	sensors, software, and related equipment used primarily in the
3501		-	computer-assisted operation of production agriculture
3502		-	facilities, equipment, and activities such as, but not limited
3503		-	to, the collection, monitoring, and correlation of animal and
3504		-	crop data for the purpose of formulating animal diets and
3505		-	agricultural chemicals.
3506		-	Beginning on January 1, 2024, farm machinery and equipment
3507		-	also includes electrical power generation equipment used
3508		-
3509		-
3510		-	primarily for production agriculture.
3511		-	This item (11) is exempt from the provisions of Section
3512		-	3-90.
3513		-	(12) Until June 30, 2013, fuel and petroleum products sold
3514		-	to or used by an air common carrier, certified by the carrier
3515		-	to be used for consumption, shipment, or storage in the
3516		-	conduct of its business as an air common carrier, for a flight
3517		-	destined for or returning from a location or locations outside
3518		-	the United States without regard to previous or subsequent
3519		-	domestic stopovers.
3520		-	Beginning July 1, 2013, fuel and petroleum products sold
3521		-	to or used by an air carrier, certified by the carrier to be
3522		-	used for consumption, shipment, or storage in the conduct of
3523		-	its business as an air common carrier, for a flight that (i) is
3524		-	engaged in foreign trade or is engaged in trade between the
3525		-	United States and any of its possessions and (ii) transports
3526		-	at least one individual or package for hire from the city of
3527		-	origination to the city of final destination on the same
3528		-	aircraft, without regard to a change in the flight number of
3529		-	that aircraft.
3530		-	(13) Proceeds of mandatory service charges separately
3531		-	stated on customers' bills for the purchase and consumption of
3532		-	food and beverages purchased at retail from a retailer, to the
3533		-	extent that the proceeds of the service charge are in fact
3534		-	turned over as tips or as a substitute for tips to the
3535		-	employees who participate directly in preparing, serving,
3536		-
3537		-
3538		-	hosting or cleaning up the food or beverage function with
3539		-	respect to which the service charge is imposed.
3540		-	(14) Until July 1, 2003, oil field exploration, drilling,
3541		-	and production equipment, including (i) rigs and parts of
3542		-	rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
3543		-	pipe and tubular goods, including casing and drill strings,
3544		-	(iii) pumps and pump-jack units, (iv) storage tanks and flow
3545		-	lines, (v) any individual replacement part for oil field
3546		-	exploration, drilling, and production equipment, and (vi)
3547		-	machinery and equipment purchased for lease; but excluding
3548		-	motor vehicles required to be registered under the Illinois
3549		-	Vehicle Code.
3550		-	(15) Photoprocessing machinery and equipment, including
3551		-	repair and replacement parts, both new and used, including
3552		-	that manufactured on special order, certified by the purchaser
3553		-	to be used primarily for photoprocessing, and including
3554		-	photoprocessing machinery and equipment purchased for lease.
3555		-	(16) Until July 1, 2028, coal and aggregate exploration,
3556		-	mining, off-highway hauling, processing, maintenance, and
3557		-	reclamation equipment, including replacement parts and
3558		-	equipment, and including equipment purchased for lease, but
3559		-	excluding motor vehicles required to be registered under the
3560		-	Illinois Vehicle Code. The changes made to this Section by
3561		-	Public Act 97-767 apply on and after July 1, 2003, but no claim
3562		-	for credit or refund is allowed on or after August 16, 2013
3563		-	(the effective date of Public Act 98-456) for such taxes paid
3564		-
3565		-
3566		-	during the period beginning July 1, 2003 and ending on August
3567		-	16, 2013 (the effective date of Public Act 98-456).
3568		-	(17) Until July 1, 2003, distillation machinery and
3569		-	equipment, sold as a unit or kit, assembled or installed by the
3570		-	retailer, certified by the user to be used only for the
3571		-	production of ethyl alcohol that will be used for consumption
3572		-	as motor fuel or as a component of motor fuel for the personal
3573		-	use of the user, and not subject to sale or resale.
3574		-	(18) Manufacturing and assembling machinery and equipment
3575		-	used primarily in the process of manufacturing or assembling
3576		-	tangible personal property for wholesale or retail sale or
3577		-	lease, whether that sale or lease is made directly by the
3578		-	manufacturer or by some other person, whether the materials
3579		-	used in the process are owned by the manufacturer or some other
3580		-	person, or whether that sale or lease is made apart from or as
3581		-	an incident to the seller's engaging in the service occupation
3582		-	of producing machines, tools, dies, jigs, patterns, gauges, or
3583		-	other similar items of no commercial value on special order
3584		-	for a particular purchaser. The exemption provided by this
3585		-	paragraph (18) includes production related tangible personal
3586		-	property, as defined in Section 3-50, purchased on or after
3587		-	July 1, 2019. The exemption provided by this paragraph (18)
3588		-	does not include machinery and equipment used in (i) the
3589		-	generation of electricity for wholesale or retail sale; (ii)
3590		-	the generation or treatment of natural or artificial gas for
3591		-	wholesale or retail sale that is delivered to customers
3592		-
3593		-
3594		-	through pipes, pipelines, or mains; or (iii) the treatment of
3595		-	water for wholesale or retail sale that is delivered to
3596		-	customers through pipes, pipelines, or mains. The provisions
3597		-	of Public Act 98-583 are declaratory of existing law as to the
3598		-	meaning and scope of this exemption. Beginning on July 1,
3599		-	2017, the exemption provided by this paragraph (18) includes,
3600		-	but is not limited to, graphic arts machinery and equipment,
3601		-	as defined in paragraph (6) of this Section.
3602		-	(19) Personal property delivered to a purchaser or
3603		-	purchaser's donee inside Illinois when the purchase order for
3604		-	that personal property was received by a florist located
3605		-	outside Illinois who has a florist located inside Illinois
3606		-	deliver the personal property.
3607		-	(20) Semen used for artificial insemination of livestock
3608		-	for direct agricultural production.
3609		-	(21) Horses, or interests in horses, registered with and
3610		-	meeting the requirements of any of the Arabian Horse Club
3611		-	Registry of America, Appaloosa Horse Club, American Quarter
3612		-	Horse Association, United States Trotting Association, or
3613		-	Jockey Club, as appropriate, used for purposes of breeding or
3614		-	racing for prizes. This item (21) is exempt from the
3615		-	provisions of Section 3-90, and the exemption provided for
3616		-	under this item (21) applies for all periods beginning May 30,
3617		-	1995, but no claim for credit or refund is allowed on or after
3618		-	January 1, 2008 for such taxes paid during the period
3619		-	beginning May 30, 2000 and ending on January 1, 2008.
3620		-
3621		-
3622		-	(22) Computers and communications equipment utilized for
3623		-	any hospital purpose and equipment used in the diagnosis,
3624		-	analysis, or treatment of hospital patients purchased by a
3625		-	lessor who leases the equipment, under a lease of one year or
3626		-	longer executed or in effect at the time the lessor would
3627		-	otherwise be subject to the tax imposed by this Act, to a
3628		-	hospital that has been issued an active tax exemption
3629		-	identification number by the Department under Section 1g of
3630		-	the Retailers' Occupation Tax Act. If the equipment is leased
3631		-	in a manner that does not qualify for this exemption or is used
3632		-	in any other non-exempt manner, the lessor shall be liable for
3633		-	the tax imposed under this Act or the Service Use Tax Act, as
3634		-	the case may be, based on the fair market value of the property
3635		-	at the time the non-qualifying use occurs. No lessor shall
3636		-	collect or attempt to collect an amount (however designated)
3637		-	that purports to reimburse that lessor for the tax imposed by
3638		-	this Act or the Service Use Tax Act, as the case may be, if the
3639		-	tax has not been paid by the lessor. If a lessor improperly
3640		-	collects any such amount from the lessee, the lessee shall
3641		-	have a legal right to claim a refund of that amount from the
3642		-	lessor. If, however, that amount is not refunded to the lessee
3643		-	for any reason, the lessor is liable to pay that amount to the
3644		-	Department.
3645		-	(23) Personal property purchased by a lessor who leases
3646		-	the property, under a lease of one year or longer executed or
3647		-	in effect at the time the lessor would otherwise be subject to
3648		-
3649		-
3650		-	the tax imposed by this Act, to a governmental body that has
3651		-	been issued an active sales tax exemption identification
3652		-	number by the Department under Section 1g of the Retailers'
3653		-	Occupation Tax Act. If the property is leased in a manner that
3654		-	does not qualify for this exemption or used in any other
3655		-	non-exempt manner, the lessor shall be liable for the tax
3656		-	imposed under this Act or the Service Use Tax Act, as the case
3657		-	may be, based on the fair market value of the property at the
3658		-	time the non-qualifying use occurs. No lessor shall collect or
3659		-	attempt to collect an amount (however designated) that
3660		-	purports to reimburse that lessor for the tax imposed by this
3661		-	Act or the Service Use Tax Act, as the case may be, if the tax
3662		-	has not been paid by the lessor. If a lessor improperly
3663		-	collects any such amount from the lessee, the lessee shall
3664		-	have a legal right to claim a refund of that amount from the
3665		-	lessor. If, however, that amount is not refunded to the lessee
3666		-	for any reason, the lessor is liable to pay that amount to the
3667		-	Department.
3668		-	(24) Beginning with taxable years ending on or after
3669		-	December 31, 1995 and ending with taxable years ending on or
3670		-	before December 31, 2004, personal property that is donated
3671		-	for disaster relief to be used in a State or federally declared
3672		-	disaster area in Illinois or bordering Illinois by a
3673		-	manufacturer or retailer that is registered in this State to a
3674		-	corporation, society, association, foundation, or institution
3675		-	that has been issued a sales tax exemption identification
3676		-
3677		-
3678		-	number by the Department that assists victims of the disaster
3679		-	who reside within the declared disaster area.
3680		-	(25) Beginning with taxable years ending on or after
3681		-	December 31, 1995 and ending with taxable years ending on or
3682		-	before December 31, 2004, personal property that is used in
3683		-	the performance of infrastructure repairs in this State,
3684		-	including but not limited to municipal roads and streets,
3685		-	access roads, bridges, sidewalks, waste disposal systems,
3686		-	water and sewer line extensions, water distribution and
3687		-	purification facilities, storm water drainage and retention
3688		-	facilities, and sewage treatment facilities, resulting from a
3689		-	State or federally declared disaster in Illinois or bordering
3690		-	Illinois when such repairs are initiated on facilities located
3691		-	in the declared disaster area within 6 months after the
3692		-	disaster.
3693		-	(26) Beginning July 1, 1999, game or game birds purchased
3694		-	at a "game breeding and hunting preserve area" as that term is
3695		-	used in the Wildlife Code. This paragraph is exempt from the
3696		-	provisions of Section 3-90.
3697		-	(27) A motor vehicle, as that term is defined in Section
3698		-	1-146 of the Illinois Vehicle Code, that is donated to a
3699		-	corporation, limited liability company, society, association,
3700		-	foundation, or institution that is determined by the
3701		-	Department to be organized and operated exclusively for
3702		-	educational purposes. For purposes of this exemption, "a
3703		-	corporation, limited liability company, society, association,
3704		-
3705		-
3706		-	foundation, or institution organized and operated exclusively
3707		-	for educational purposes" means all tax-supported public
3708		-	schools, private schools that offer systematic instruction in
3709		-	useful branches of learning by methods common to public
3710		-	schools and that compare favorably in their scope and
3711		-	intensity with the course of study presented in tax-supported
3712		-	schools, and vocational or technical schools or institutes
3713		-	organized and operated exclusively to provide a course of
3714		-	study of not less than 6 weeks duration and designed to prepare
3715		-	individuals to follow a trade or to pursue a manual,
3716		-	technical, mechanical, industrial, business, or commercial
3717		-	occupation.
3718		-	(28) Beginning January 1, 2000, personal property,
3719		-	including food, purchased through fundraising events for the
3720		-	benefit of a public or private elementary or secondary school,
3721		-	a group of those schools, or one or more school districts if
3722		-	the events are sponsored by an entity recognized by the school
3723		-	district that consists primarily of volunteers and includes
3724		-	parents and teachers of the school children. This paragraph
3725		-	does not apply to fundraising events (i) for the benefit of
3726		-	private home instruction or (ii) for which the fundraising
3727		-	entity purchases the personal property sold at the events from
3728		-	another individual or entity that sold the property for the
3729		-	purpose of resale by the fundraising entity and that profits
3730		-	from the sale to the fundraising entity. This paragraph is
3731		-	exempt from the provisions of Section 3-90.
3732		-
3733		-
3734		-	(29) Beginning January 1, 2000 and through December 31,
3735		-	2001, new or used automatic vending machines that prepare and
3736		-	serve hot food and beverages, including coffee, soup, and
3737		-	other items, and replacement parts for these machines.
3738		-	Beginning January 1, 2002 and through June 30, 2003, machines
3739		-	and parts for machines used in commercial, coin-operated
3740		-	amusement and vending business if a use or occupation tax is
3741		-	paid on the gross receipts derived from the use of the
3742		-	commercial, coin-operated amusement and vending machines. This
3743		-	paragraph is exempt from the provisions of Section 3-90.
3744		-	(30) Beginning January 1, 2001 and through June 30, 2016,
3745		-	food for human consumption that is to be consumed off the
3746		-	premises where it is sold (other than alcoholic beverages,
3747		-	soft drinks, and food that has been prepared for immediate
3748		-	consumption) and prescription and nonprescription medicines,
3749		-	drugs, medical appliances, and insulin, urine testing
3750		-	materials, syringes, and needles used by diabetics, for human
3751		-	use, when purchased for use by a person receiving medical
3752		-	assistance under Article V of the Illinois Public Aid Code who
3753		-	resides in a licensed long-term care facility, as defined in
3754		-	the Nursing Home Care Act, or in a licensed facility as defined
3755		-	in the ID/DD Community Care Act, the MC/DD Act, or the
3756		-	Specialized Mental Health Rehabilitation Act of 2013.
3757		-	(31) Beginning on August 2, 2001 (the effective date of
3758		-	Public Act 92-227), computers and communications equipment
3759		-	utilized for any hospital purpose and equipment used in the
3760		-
3761		-
3762		-	diagnosis, analysis, or treatment of hospital patients
3763		-	purchased by a lessor who leases the equipment, under a lease
3764		-	of one year or longer executed or in effect at the time the
3765		-	lessor would otherwise be subject to the tax imposed by this
3766		-	Act, to a hospital that has been issued an active tax exemption
3767		-	identification number by the Department under Section 1g of
3768		-	the Retailers' Occupation Tax Act. If the equipment is leased
3769		-	in a manner that does not qualify for this exemption or is used
3770		-	in any other nonexempt manner, the lessor shall be liable for
3771		-	the tax imposed under this Act or the Service Use Tax Act, as
3772		-	the case may be, based on the fair market value of the property
3773		-	at the time the nonqualifying use occurs. No lessor shall
3774		-	collect or attempt to collect an amount (however designated)
3775		-	that purports to reimburse that lessor for the tax imposed by
3776		-	this Act or the Service Use Tax Act, as the case may be, if the
3777		-	tax has not been paid by the lessor. If a lessor improperly
3778		-	collects any such amount from the lessee, the lessee shall
3779		-	have a legal right to claim a refund of that amount from the
3780		-	lessor. If, however, that amount is not refunded to the lessee
3781		-	for any reason, the lessor is liable to pay that amount to the
3782		-	Department. This paragraph is exempt from the provisions of
3783		-	Section 3-90.
3784		-	(32) Beginning on August 2, 2001 (the effective date of
3785		-	Public Act 92-227), personal property purchased by a lessor
3786		-	who leases the property, under a lease of one year or longer
3787		-	executed or in effect at the time the lessor would otherwise be
3788		-
3789		-
3790		-	subject to the tax imposed by this Act, to a governmental body
3791		-	that has been issued an active sales tax exemption
3792		-	identification number by the Department under Section 1g of
3793		-	the Retailers' Occupation Tax Act. If the property is leased
3794		-	in a manner that does not qualify for this exemption or used in
3795		-	any other nonexempt manner, the lessor shall be liable for the
3796		-	tax imposed under this Act or the Service Use Tax Act, as the
3797		-	case may be, based on the fair market value of the property at
3798		-	the time the nonqualifying use occurs. No lessor shall collect
3799		-	or attempt to collect an amount (however designated) that
3800		-	purports to reimburse that lessor for the tax imposed by this
3801		-	Act or the Service Use Tax Act, as the case may be, if the tax
3802		-	has not been paid by the lessor. If a lessor improperly
3803		-	collects any such amount from the lessee, the lessee shall
3804		-	have a legal right to claim a refund of that amount from the
3805		-	lessor. If, however, that amount is not refunded to the lessee
3806		-	for any reason, the lessor is liable to pay that amount to the
3807		-	Department. This paragraph is exempt from the provisions of
3808		-	Section 3-90.
3809		-	(33) On and after July 1, 2003 and through June 30, 2004,
3810		-	the use in this State of motor vehicles of the second division
3811		-	with a gross vehicle weight in excess of 8,000 pounds and that
3812		-	are subject to the commercial distribution fee imposed under
3813		-	Section 3-815.1 of the Illinois Vehicle Code. Beginning on
3814		-	July 1, 2004 and through June 30, 2005, the use in this State
3815		-	of motor vehicles of the second division: (i) with a gross
3816		-
3817		-
3818		-	vehicle weight rating in excess of 8,000 pounds; (ii) that are
3819		-	subject to the commercial distribution fee imposed under
3820		-	Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
3821		-	are primarily used for commercial purposes. Through June 30,
3822		-	2005, this exemption applies to repair and replacement parts
3823		-	added after the initial purchase of such a motor vehicle if
3824		-	that motor vehicle is used in a manner that would qualify for
3825		-	the rolling stock exemption otherwise provided for in this
3826		-	Act. For purposes of this paragraph, the term "used for
3827		-	commercial purposes" means the transportation of persons or
3828		-	property in furtherance of any commercial or industrial
3829		-	enterprise, whether for-hire or not.
3830		-	(34) Beginning January 1, 2008, tangible personal property
3831		-	used in the construction or maintenance of a community water
3832		-	supply, as defined under Section 3.145 of the Environmental
3833		-	Protection Act, that is operated by a not-for-profit
3834		-	corporation that holds a valid water supply permit issued
3835		-	under Title IV of the Environmental Protection Act. This
3836		-	paragraph is exempt from the provisions of Section 3-90.
3837		-	(35) Beginning January 1, 2010 and continuing through
3838		-	December 31, 2024, materials, parts, equipment, components,
3839		-	and furnishings incorporated into or upon an aircraft as part
3840		-	of the modification, refurbishment, completion, replacement,
3841		-	repair, or maintenance of the aircraft. This exemption
3842		-	includes consumable supplies used in the modification,
3843		-	refurbishment, completion, replacement, repair, and
3844		-
3845		-
3846		-	maintenance of aircraft, but excludes any materials, parts,
3847		-	equipment, components, and consumable supplies used in the
3848		-	modification, replacement, repair, and maintenance of aircraft
3849		-	engines or power plants, whether such engines or power plants
3850		-	are installed or uninstalled upon any such aircraft.
3851		-	"Consumable supplies" include, but are not limited to,
3852		-	adhesive, tape, sandpaper, general purpose lubricants,
3853		-	cleaning solution, latex gloves, and protective films. This
3854		-	exemption applies only to the use of qualifying tangible
3855		-	personal property by persons who modify, refurbish, complete,
3856		-	repair, replace, or maintain aircraft and who (i) hold an Air
3857		-	Agency Certificate and are empowered to operate an approved
3858		-	repair station by the Federal Aviation Administration, (ii)
3859		-	have a Class IV Rating, and (iii) conduct operations in
3860		-	accordance with Part 145 of the Federal Aviation Regulations.
3861		-	The exemption does not include aircraft operated by a
3862		-	commercial air carrier providing scheduled passenger air
3863		-	service pursuant to authority issued under Part 121 or Part
3864		-	129 of the Federal Aviation Regulations. The changes made to
3865		-	this paragraph (35) by Public Act 98-534 are declarative of
3866		-	existing law. It is the intent of the General Assembly that the
3867		-	exemption under this paragraph (35) applies continuously from
3868		-	January 1, 2010 through December 31, 2024; however, no claim
3869		-	for credit or refund is allowed for taxes paid as a result of
3870		-	the disallowance of this exemption on or after January 1, 2015
3871		-	and prior to February 5, 2020 (the effective date of Public Act
3872		-
3873		-
3874		-	101-629) this amendatory Act of the 101st General Assembly.
3875		-	(36) Tangible personal property purchased by a
3876		-	public-facilities corporation, as described in Section
3877		-	11-65-10 of the Illinois Municipal Code, for purposes of
3878		-	constructing or furnishing a municipal convention hall, but
3879		-	only if the legal title to the municipal convention hall is
3880		-	transferred to the municipality without any further
3881		-	consideration by or on behalf of the municipality at the time
3882		-	of the completion of the municipal convention hall or upon the
3883		-	retirement or redemption of any bonds or other debt
3884		-	instruments issued by the public-facilities corporation in
3885		-	connection with the development of the municipal convention
3886		-	hall. This exemption includes existing public-facilities
3887		-	corporations as provided in Section 11-65-25 of the Illinois
3888		-	Municipal Code. This paragraph is exempt from the provisions
3889		-	of Section 3-90.
3890		-	(37) Beginning January 1, 2017 and through December 31,
3891		-	2026, menstrual pads, tampons, and menstrual cups.
3892		-	(38) Merchandise that is subject to the Rental Purchase
3893		-	Agreement Occupation and Use Tax. The purchaser must certify
3894		-	that the item is purchased to be rented subject to a rental
3895		-	purchase agreement, as defined in the Rental Purchase
3896		-	Agreement Act, and provide proof of registration under the
3897		-	Rental Purchase Agreement Occupation and Use Tax Act. This
3898		-	paragraph is exempt from the provisions of Section 3-90.
3899		-	(39) Tangible personal property purchased by a purchaser
3900		-
3901		-
3902		-	who is exempt from the tax imposed by this Act by operation of
3903		-	federal law. This paragraph is exempt from the provisions of
3904		-	Section 3-90.
3905		-	(40) Qualified tangible personal property used in the
3906		-	construction or operation of a data center that has been
3907		-	granted a certificate of exemption by the Department of
3908		-	Commerce and Economic Opportunity, whether that tangible
3909		-	personal property is purchased by the owner, operator, or
3910		-	tenant of the data center or by a contractor or subcontractor
3911		-	of the owner, operator, or tenant. Data centers that would
3912		-	have qualified for a certificate of exemption prior to January
3913		-	1, 2020 had Public Act 101-31 been in effect may apply for and
3914		-	obtain an exemption for subsequent purchases of computer
3915		-	equipment or enabling software purchased or leased to upgrade,
3916		-	supplement, or replace computer equipment or enabling software
3917		-	purchased or leased in the original investment that would have
3918		-	qualified.
3919		-	The Department of Commerce and Economic Opportunity shall
3920		-	grant a certificate of exemption under this item (40) to
3921		-	qualified data centers as defined by Section 605-1025 of the
3922		-	Department of Commerce and Economic Opportunity Law of the
3923		-	Civil Administrative Code of Illinois.
3924		-	For the purposes of this item (40):
3925		-	"Data center" means a building or a series of
3926		-	buildings rehabilitated or constructed to house working
3927		-	servers in one physical location or multiple sites within
3928		-
3929		-
3930		-	the State of Illinois.
3931		-	"Qualified tangible personal property" means:
3932		-	electrical systems and equipment; climate control and
3933		-	chilling equipment and systems; mechanical systems and
3934		-	equipment; monitoring and secure systems; emergency
3935		-	generators; hardware; computers; servers; data storage
3936		-	devices; network connectivity equipment; racks; cabinets;
3937		-	telecommunications cabling infrastructure; raised floor
3938		-	systems; peripheral components or systems; software;
3939		-	mechanical, electrical, or plumbing systems; battery
3940		-	systems; cooling systems and towers; temperature control
3941		-	systems; other cabling; and other data center
3942		-	infrastructure equipment and systems necessary to operate
3943		-	qualified tangible personal property, including fixtures;
3944		-	and component parts of any of the foregoing, including
3945		-	installation, maintenance, repair, refurbishment, and
3946		-	replacement of qualified tangible personal property to
3947		-	generate, transform, transmit, distribute, or manage
3948		-	electricity necessary to operate qualified tangible
3949		-	personal property; and all other tangible personal
3950		-	property that is essential to the operations of a computer
3951		-	data center. The term "qualified tangible personal
3952		-	property" also includes building materials physically
3953		-	incorporated in to the qualifying data center. To document
3954		-	the exemption allowed under this Section, the retailer
3955		-	must obtain from the purchaser a copy of the certificate
3956		-
3957		-
3958		-	of eligibility issued by the Department of Commerce and
3959		-	Economic Opportunity.
3960		-	This item (40) is exempt from the provisions of Section
3961		-	3-90.
3962		-	(41) Beginning July 1, 2022, breast pumps, breast pump
3963		-	collection and storage supplies, and breast pump kits. This
3964		-	item (41) is exempt from the provisions of Section 3-90. As
3965		-	used in this item (41):
3966		-	"Breast pump" means an electrically controlled or
3967		-	manually controlled pump device designed or marketed to be
3968		-	used to express milk from a human breast during lactation,
3969		-	including the pump device and any battery, AC adapter, or
3970		-	other power supply unit that is used to power the pump
3971		-	device and is packaged and sold with the pump device at the
3972		-	time of sale.
3973		-	"Breast pump collection and storage supplies" means
3974		-	items of tangible personal property designed or marketed
3975		-	to be used in conjunction with a breast pump to collect
3976		-	milk expressed from a human breast and to store collected
3977		-	milk until it is ready for consumption.
3978		-	"Breast pump collection and storage supplies"
3979		-	includes, but is not limited to: breast shields and breast
3980		-	shield connectors; breast pump tubes and tubing adapters;
3981		-	breast pump valves and membranes; backflow protectors and
3982		-	backflow protector adaptors; bottles and bottle caps
3983		-	specific to the operation of the breast pump; and breast
3984		-
3985		-
3986		-	milk storage bags.
3987		-	"Breast pump collection and storage supplies" does not
3988		-	include: (1) bottles and bottle caps not specific to the
3989		-	operation of the breast pump; (2) breast pump travel bags
3990		-	and other similar carrying accessories, including ice
3991		-	packs, labels, and other similar products; (3) breast pump
3992		-	cleaning supplies; (4) nursing bras, bra pads, breast
3993		-	shells, and other similar products; and (5) creams,
3994		-	ointments, and other similar products that relieve
3995		-	breastfeeding-related symptoms or conditions of the
3996		-	breasts or nipples, unless sold as part of a breast pump
3997		-	kit that is pre-packaged by the breast pump manufacturer
3998		-	or distributor.
3999		-	"Breast pump kit" means a kit that: (1) contains no
4000		-	more than a breast pump, breast pump collection and
4001		-	storage supplies, a rechargeable battery for operating the
4002		-	breast pump, a breastmilk cooler, bottle stands, ice
4003		-	packs, and a breast pump carrying case; and (2) is
4004		-	pre-packaged as a breast pump kit by the breast pump
4005		-	manufacturer or distributor.
4006		-	(42) (41) Tangible personal property sold by or on behalf
4007		-	of the State Treasurer pursuant to the Revised Uniform
4008		-	Unclaimed Property Act. This item (42) (41) is exempt from the
4009		-	provisions of Section 3-90.
4010		-	(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
4011		-	101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
4012		-
4013		-
4014		-	6-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
4015		-	102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
4016		-	eff. 5-27-22; revised 8-1-22.)
4017		-	Section 15-10. The Service Use Tax Act is amended by
4018		-	changing Section 3-5 as follows:
4019		-	(35 ILCS 110/3-5)
4020		-	Sec. 3-5. Exemptions. Use of the following tangible
4021		-	personal property is exempt from the tax imposed by this Act:
4022		-	(1) Personal property purchased from a corporation,
4023		-	society, association, foundation, institution, or
4024		-	organization, other than a limited liability company, that is
4025		-	organized and operated as a not-for-profit service enterprise
4026		-	for the benefit of persons 65 years of age or older if the
4027		-	personal property was not purchased by the enterprise for the
4028		-	purpose of resale by the enterprise.
4029		-	(2) Personal property purchased by a non-profit Illinois
4030		-	county fair association for use in conducting, operating, or
4031		-	promoting the county fair.
4032		-	(3) Personal property purchased by a not-for-profit arts
4033		-	or cultural organization that establishes, by proof required
4034		-	by the Department by rule, that it has received an exemption
4035		-	under Section 501(c)(3) of the Internal Revenue Code and that
4036		-	is organized and operated primarily for the presentation or
4037		-	support of arts or cultural programming, activities, or
4038		-
4039		-
4040		-	services. These organizations include, but are not limited to,
4041		-	music and dramatic arts organizations such as symphony
4042		-	orchestras and theatrical groups, arts and cultural service
4043		-	organizations, local arts councils, visual arts organizations,
4044		-	and media arts organizations. On and after July 1, 2001 (the
4045		-	effective date of Public Act 92-35), however, an entity
4046		-	otherwise eligible for this exemption shall not make tax-free
4047		-	purchases unless it has an active identification number issued
4048		-	by the Department.
4049		-	(4) Legal tender, currency, medallions, or gold or silver
4050		-	coinage issued by the State of Illinois, the government of the
4051		-	United States of America, or the government of any foreign
4052		-	country, and bullion.
4053		-	(5) Until July 1, 2003 and beginning again on September 1,
4054		-	2004 through August 30, 2014, graphic arts machinery and
4055		-	equipment, including repair and replacement parts, both new
4056		-	and used, and including that manufactured on special order or
4057		-	purchased for lease, certified by the purchaser to be used
4058		-	primarily for graphic arts production. Equipment includes
4059		-	chemicals or chemicals acting as catalysts but only if the
4060		-	chemicals or chemicals acting as catalysts effect a direct and
4061		-	immediate change upon a graphic arts product. Beginning on
4062		-	July 1, 2017, graphic arts machinery and equipment is included
4063		-	in the manufacturing and assembling machinery and equipment
4064		-	exemption under Section 2 of this Act.
4065		-	(6) Personal property purchased from a teacher-sponsored
4066		-
4067		-
4068		-	student organization affiliated with an elementary or
4069		-	secondary school located in Illinois.
4070		-	(7) Farm machinery and equipment, both new and used,
4071		-	including that manufactured on special order, certified by the
4072		-	purchaser to be used primarily for production agriculture or
4073		-	State or federal agricultural programs, including individual
4074		-	replacement parts for the machinery and equipment, including
4075		-	machinery and equipment purchased for lease, and including
4076		-	implements of husbandry defined in Section 1-130 of the
4077		-	Illinois Vehicle Code, farm machinery and agricultural
4078		-	chemical and fertilizer spreaders, and nurse wagons required
4079		-	to be registered under Section 3-809 of the Illinois Vehicle
4080		-	Code, but excluding other motor vehicles required to be
4081		-	registered under the Illinois Vehicle Code. Horticultural
4082		-	polyhouses or hoop houses used for propagating, growing, or
4083		-	overwintering plants shall be considered farm machinery and
4084		-	equipment under this item (7). Agricultural chemical tender
4085		-	tanks and dry boxes shall include units sold separately from a
4086		-	motor vehicle required to be licensed and units sold mounted
4087		-	on a motor vehicle required to be licensed if the selling price
4088		-	of the tender is separately stated.
4089		-	Farm machinery and equipment shall include precision
4090		-	farming equipment that is installed or purchased to be
4091		-	installed on farm machinery and equipment including, but not
4092		-	limited to, tractors, harvesters, sprayers, planters, seeders,
4093		-	or spreaders. Precision farming equipment includes, but is not
4094		-
4095		-
4096		-	limited to, soil testing sensors, computers, monitors,
4097		-	software, global positioning and mapping systems, and other
4098		-	such equipment.
4099		-	Farm machinery and equipment also includes computers,
4100		-	sensors, software, and related equipment used primarily in the
4101		-	computer-assisted operation of production agriculture
4102		-	facilities, equipment, and activities such as, but not limited
4103		-	to, the collection, monitoring, and correlation of animal and
4104		-	crop data for the purpose of formulating animal diets and
4105		-	agricultural chemicals.
4106		-	Beginning on January 1, 2024, farm machinery and equipment
4107		-	also includes electrical power generation equipment used
4108		-	primarily for production agriculture.
4109		-	This item (7) is exempt from the provisions of Section
4110		-	3-75.
4111		-	(8) Until June 30, 2013, fuel and petroleum products sold
4112		-	to or used by an air common carrier, certified by the carrier
4113		-	to be used for consumption, shipment, or storage in the
4114		-	conduct of its business as an air common carrier, for a flight
4115		-	destined for or returning from a location or locations outside
4116		-	the United States without regard to previous or subsequent
4117		-	domestic stopovers.
4118		-	Beginning July 1, 2013, fuel and petroleum products sold
4119		-	to or used by an air carrier, certified by the carrier to be
4120		-	used for consumption, shipment, or storage in the conduct of
4121		-	its business as an air common carrier, for a flight that (i) is
4122		-
4123		-
4124		-	engaged in foreign trade or is engaged in trade between the
4125		-	United States and any of its possessions and (ii) transports
4126		-	at least one individual or package for hire from the city of
4127		-	origination to the city of final destination on the same
4128		-	aircraft, without regard to a change in the flight number of
4129		-	that aircraft.
4130		-	(9) Proceeds of mandatory service charges separately
4131		-	stated on customers' bills for the purchase and consumption of
4132		-	food and beverages acquired as an incident to the purchase of a
4133		-	service from a serviceman, to the extent that the proceeds of
4134		-	the service charge are in fact turned over as tips or as a
4135		-	substitute for tips to the employees who participate directly
4136		-	in preparing, serving, hosting or cleaning up the food or
4137		-	beverage function with respect to which the service charge is
4138		-	imposed.
4139		-	(10) Until July 1, 2003, oil field exploration, drilling,
4140		-	and production equipment, including (i) rigs and parts of
4141		-	rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
4142		-	pipe and tubular goods, including casing and drill strings,
4143		-	(iii) pumps and pump-jack units, (iv) storage tanks and flow
4144		-	lines, (v) any individual replacement part for oil field
4145		-	exploration, drilling, and production equipment, and (vi)
4146		-	machinery and equipment purchased for lease; but excluding
4147		-	motor vehicles required to be registered under the Illinois
4148		-	Vehicle Code.
4149		-	(11) Proceeds from the sale of photoprocessing machinery
4150		-
4151		-
4152		-	and equipment, including repair and replacement parts, both
4153		-	new and used, including that manufactured on special order,
4154		-	certified by the purchaser to be used primarily for
4155		-	photoprocessing, and including photoprocessing machinery and
4156		-	equipment purchased for lease.
4157		-	(12) Until July 1, 2028, coal and aggregate exploration,
4158		-	mining, off-highway hauling, processing, maintenance, and
4159		-	reclamation equipment, including replacement parts and
4160		-	equipment, and including equipment purchased for lease, but
4161		-	excluding motor vehicles required to be registered under the
4162		-	Illinois Vehicle Code. The changes made to this Section by
4163		-	Public Act 97-767 apply on and after July 1, 2003, but no claim
4164		-	for credit or refund is allowed on or after August 16, 2013
4165		-	(the effective date of Public Act 98-456) for such taxes paid
4166		-	during the period beginning July 1, 2003 and ending on August
4167		-	16, 2013 (the effective date of Public Act 98-456).
4168		-	(13) Semen used for artificial insemination of livestock
4169		-	for direct agricultural production.
4170		-	(14) Horses, or interests in horses, registered with and
4171		-	meeting the requirements of any of the Arabian Horse Club
4172		-	Registry of America, Appaloosa Horse Club, American Quarter
4173		-	Horse Association, United States Trotting Association, or
4174		-	Jockey Club, as appropriate, used for purposes of breeding or
4175		-	racing for prizes. This item (14) is exempt from the
4176		-	provisions of Section 3-75, and the exemption provided for
4177		-	under this item (14) applies for all periods beginning May 30,
4178		-
4179		-
4180		-	1995, but no claim for credit or refund is allowed on or after
4181		-	January 1, 2008 (the effective date of Public Act 95-88) for
4182		-	such taxes paid during the period beginning May 30, 2000 and
4183		-	ending on January 1, 2008 (the effective date of Public Act
4184		-	95-88).
4185		-	(15) Computers and communications equipment utilized for
4186		-	any hospital purpose and equipment used in the diagnosis,
4187		-	analysis, or treatment of hospital patients purchased by a
4188		-	lessor who leases the equipment, under a lease of one year or
4189		-	longer executed or in effect at the time the lessor would
4190		-	otherwise be subject to the tax imposed by this Act, to a
4191		-	hospital that has been issued an active tax exemption
4192		-	identification number by the Department under Section 1g of
4193		-	the Retailers' Occupation Tax Act. If the equipment is leased
4194		-	in a manner that does not qualify for this exemption or is used
4195		-	in any other non-exempt manner, the lessor shall be liable for
4196		-	the tax imposed under this Act or the Use Tax Act, as the case
4197		-	may be, based on the fair market value of the property at the
4198		-	time the non-qualifying use occurs. No lessor shall collect or
4199		-	attempt to collect an amount (however designated) that
4200		-	purports to reimburse that lessor for the tax imposed by this
4201		-	Act or the Use Tax Act, as the case may be, if the tax has not
4202		-	been paid by the lessor. If a lessor improperly collects any
4203		-	such amount from the lessee, the lessee shall have a legal
4204		-	right to claim a refund of that amount from the lessor. If,
4205		-	however, that amount is not refunded to the lessee for any
4206		-
4207		-
4208		-	reason, the lessor is liable to pay that amount to the
4209		-	Department.
4210		-	(16) Personal property purchased by a lessor who leases
4211		-	the property, under a lease of one year or longer executed or
4212		-	in effect at the time the lessor would otherwise be subject to
4213		-	the tax imposed by this Act, to a governmental body that has
4214		-	been issued an active tax exemption identification number by
4215		-	the Department under Section 1g of the Retailers' Occupation
4216		-	Tax Act. If the property is leased in a manner that does not
4217		-	qualify for this exemption or is used in any other non-exempt
4218		-	manner, the lessor shall be liable for the tax imposed under
4219		-	this Act or the Use Tax Act, as the case may be, based on the
4220		-	fair market value of the property at the time the
4221		-	non-qualifying use occurs. No lessor shall collect or attempt
4222		-	to collect an amount (however designated) that purports to
4223		-	reimburse that lessor for the tax imposed by this Act or the
4224		-	Use Tax Act, as the case may be, if the tax has not been paid
4225		-	by the lessor. If a lessor improperly collects any such amount
4226		-	from the lessee, the lessee shall have a legal right to claim a
4227		-	refund of that amount from the lessor. If, however, that
4228		-	amount is not refunded to the lessee for any reason, the lessor
4229		-	is liable to pay that amount to the Department.
4230		-	(17) Beginning with taxable years ending on or after
4231		-	December 31, 1995 and ending with taxable years ending on or
4232		-	before December 31, 2004, personal property that is donated
4233		-	for disaster relief to be used in a State or federally declared
4234		-
4235		-
4236		-	disaster area in Illinois or bordering Illinois by a
4237		-	manufacturer or retailer that is registered in this State to a
4238		-	corporation, society, association, foundation, or institution
4239		-	that has been issued a sales tax exemption identification
4240		-	number by the Department that assists victims of the disaster
4241		-	who reside within the declared disaster area.
4242		-	(18) Beginning with taxable years ending on or after
4243		-	December 31, 1995 and ending with taxable years ending on or
4244		-	before December 31, 2004, personal property that is used in
4245		-	the performance of infrastructure repairs in this State,
4246		-	including but not limited to municipal roads and streets,
4247		-	access roads, bridges, sidewalks, waste disposal systems,
4248		-	water and sewer line extensions, water distribution and
4249		-	purification facilities, storm water drainage and retention
4250		-	facilities, and sewage treatment facilities, resulting from a
4251		-	State or federally declared disaster in Illinois or bordering
4252		-	Illinois when such repairs are initiated on facilities located
4253		-	in the declared disaster area within 6 months after the
4254		-	disaster.
4255		-	(19) Beginning July 1, 1999, game or game birds purchased
4256		-	at a "game breeding and hunting preserve area" as that term is
4257		-	used in the Wildlife Code. This paragraph is exempt from the
4258		-	provisions of Section 3-75.
4259		-	(20) A motor vehicle, as that term is defined in Section
4260		-	1-146 of the Illinois Vehicle Code, that is donated to a
4261		-	corporation, limited liability company, society, association,
4262		-
4263		-
4264		-	foundation, or institution that is determined by the
4265		-	Department to be organized and operated exclusively for
4266		-	educational purposes. For purposes of this exemption, "a
4267		-	corporation, limited liability company, society, association,
4268		-	foundation, or institution organized and operated exclusively
4269		-	for educational purposes" means all tax-supported public
4270		-	schools, private schools that offer systematic instruction in
4271		-	useful branches of learning by methods common to public
4272		-	schools and that compare favorably in their scope and
4273		-	intensity with the course of study presented in tax-supported
4274		-	schools, and vocational or technical schools or institutes
4275		-	organized and operated exclusively to provide a course of
4276		-	study of not less than 6 weeks duration and designed to prepare
4277		-	individuals to follow a trade or to pursue a manual,
4278		-	technical, mechanical, industrial, business, or commercial
4279		-	occupation.
4280		-	(21) Beginning January 1, 2000, personal property,
4281		-	including food, purchased through fundraising events for the
4282		-	benefit of a public or private elementary or secondary school,
4283		-	a group of those schools, or one or more school districts if
4284		-	the events are sponsored by an entity recognized by the school
4285		-	district that consists primarily of volunteers and includes
4286		-	parents and teachers of the school children. This paragraph
4287		-	does not apply to fundraising events (i) for the benefit of
4288		-	private home instruction or (ii) for which the fundraising
4289		-	entity purchases the personal property sold at the events from
4290		-
4291		-
4292		-	another individual or entity that sold the property for the
4293		-	purpose of resale by the fundraising entity and that profits
4294		-	from the sale to the fundraising entity. This paragraph is
4295		-	exempt from the provisions of Section 3-75.
4296		-	(22) Beginning January 1, 2000 and through December 31,
4297		-	2001, new or used automatic vending machines that prepare and
4298		-	serve hot food and beverages, including coffee, soup, and
4299		-	other items, and replacement parts for these machines.
4300		-	Beginning January 1, 2002 and through June 30, 2003, machines
4301		-	and parts for machines used in commercial, coin-operated
4302		-	amusement and vending business if a use or occupation tax is
4303		-	paid on the gross receipts derived from the use of the
4304		-	commercial, coin-operated amusement and vending machines. This
4305		-	paragraph is exempt from the provisions of Section 3-75.
4306		-	(23) Beginning August 23, 2001 and through June 30, 2016,
4307		-	food for human consumption that is to be consumed off the
4308		-	premises where it is sold (other than alcoholic beverages,
4309		-	soft drinks, and food that has been prepared for immediate
4310		-	consumption) and prescription and nonprescription medicines,
4311		-	drugs, medical appliances, and insulin, urine testing
4312		-	materials, syringes, and needles used by diabetics, for human
4313		-	use, when purchased for use by a person receiving medical
4314		-	assistance under Article V of the Illinois Public Aid Code who
4315		-	resides in a licensed long-term care facility, as defined in
4316		-	the Nursing Home Care Act, or in a licensed facility as defined
4317		-	in the ID/DD Community Care Act, the MC/DD Act, or the
4318		-
4319		-
4320		-	Specialized Mental Health Rehabilitation Act of 2013.
4321		-	(24) Beginning on August 2, 2001 (the effective date of
4322		-	Public Act 92-227), computers and communications equipment
4323		-	utilized for any hospital purpose and equipment used in the
4324		-	diagnosis, analysis, or treatment of hospital patients
4325		-	purchased by a lessor who leases the equipment, under a lease
4326		-	of one year or longer executed or in effect at the time the
4327		-	lessor would otherwise be subject to the tax imposed by this
4328		-	Act, to a hospital that has been issued an active tax exemption
4329		-	identification number by the Department under Section 1g of
4330		-	the Retailers' Occupation Tax Act. If the equipment is leased
4331		-	in a manner that does not qualify for this exemption or is used
4332		-	in any other nonexempt manner, the lessor shall be liable for
4333		-	the tax imposed under this Act or the Use Tax Act, as the case
4334		-	may be, based on the fair market value of the property at the
4335		-	time the nonqualifying use occurs. No lessor shall collect or
4336		-	attempt to collect an amount (however designated) that
4337		-	purports to reimburse that lessor for the tax imposed by this
4338		-	Act or the Use Tax Act, as the case may be, if the tax has not
4339		-	been paid by the lessor. If a lessor improperly collects any
4340		-	such amount from the lessee, the lessee shall have a legal
4341		-	right to claim a refund of that amount from the lessor. If,
4342		-	however, that amount is not refunded to the lessee for any
4343		-	reason, the lessor is liable to pay that amount to the
4344		-	Department. This paragraph is exempt from the provisions of
4345		-	Section 3-75.
4346		-
4347		-
4348		-	(25) Beginning on August 2, 2001 (the effective date of
4349		-	Public Act 92-227), personal property purchased by a lessor
4350		-	who leases the property, under a lease of one year or longer
4351		-	executed or in effect at the time the lessor would otherwise be
4352		-	subject to the tax imposed by this Act, to a governmental body
4353		-	that has been issued an active tax exemption identification
4354		-	number by the Department under Section 1g of the Retailers'
4355		-	Occupation Tax Act. If the property is leased in a manner that
4356		-	does not qualify for this exemption or is used in any other
4357		-	nonexempt manner, the lessor shall be liable for the tax
4358		-	imposed under this Act or the Use Tax Act, as the case may be,
4359		-	based on the fair market value of the property at the time the
4360		-	nonqualifying use occurs. No lessor shall collect or attempt
4361		-	to collect an amount (however designated) that purports to
4362		-	reimburse that lessor for the tax imposed by this Act or the
4363		-	Use Tax Act, as the case may be, if the tax has not been paid
4364		-	by the lessor. If a lessor improperly collects any such amount
4365		-	from the lessee, the lessee shall have a legal right to claim a
4366		-	refund of that amount from the lessor. If, however, that
4367		-	amount is not refunded to the lessee for any reason, the lessor
4368		-	is liable to pay that amount to the Department. This paragraph
4369		-	is exempt from the provisions of Section 3-75.
4370		-	(26) Beginning January 1, 2008, tangible personal property
4371		-	used in the construction or maintenance of a community water
4372		-	supply, as defined under Section 3.145 of the Environmental
4373		-	Protection Act, that is operated by a not-for-profit
4374		-
4375		-
4376		-	corporation that holds a valid water supply permit issued
4377		-	under Title IV of the Environmental Protection Act. This
4378		-	paragraph is exempt from the provisions of Section 3-75.
4379		-	(27) Beginning January 1, 2010 and continuing through
4380		-	December 31, 2024, materials, parts, equipment, components,
4381		-	and furnishings incorporated into or upon an aircraft as part
4382		-	of the modification, refurbishment, completion, replacement,
4383		-	repair, or maintenance of the aircraft. This exemption
4384		-	includes consumable supplies used in the modification,
4385		-	refurbishment, completion, replacement, repair, and
4386		-	maintenance of aircraft, but excludes any materials, parts,
4387		-	equipment, components, and consumable supplies used in the
4388		-	modification, replacement, repair, and maintenance of aircraft
4389		-	engines or power plants, whether such engines or power plants
4390		-	are installed or uninstalled upon any such aircraft.
4391		-	"Consumable supplies" include, but are not limited to,
4392		-	adhesive, tape, sandpaper, general purpose lubricants,
4393		-	cleaning solution, latex gloves, and protective films. This
4394		-	exemption applies only to the use of qualifying tangible
4395		-	personal property transferred incident to the modification,
4396		-	refurbishment, completion, replacement, repair, or maintenance
4397		-	of aircraft by persons who (i) hold an Air Agency Certificate
4398		-	and are empowered to operate an approved repair station by the
4399		-	Federal Aviation Administration, (ii) have a Class IV Rating,
4400		-	and (iii) conduct operations in accordance with Part 145 of
4401		-	the Federal Aviation Regulations. The exemption does not
4402		-
4403		-
4404		-	include aircraft operated by a commercial air carrier
4405		-	providing scheduled passenger air service pursuant to
4406		-	authority issued under Part 121 or Part 129 of the Federal
4407		-	Aviation Regulations. The changes made to this paragraph (27)
4408		-	by Public Act 98-534 are declarative of existing law. It is the
4409		-	intent of the General Assembly that the exemption under this
4410		-	paragraph (27) applies continuously from January 1, 2010
4411		-	through December 31, 2024; however, no claim for credit or
4412		-	refund is allowed for taxes paid as a result of the
4413		-	disallowance of this exemption on or after January 1, 2015 and
4414		-	prior to February 5, 2020 (the effective date of Public Act
4415		-	101-629) this amendatory Act of the 101st General Assembly.
4416		-	(28) Tangible personal property purchased by a
4417		-	public-facilities corporation, as described in Section
4418		-	11-65-10 of the Illinois Municipal Code, for purposes of
4419		-	constructing or furnishing a municipal convention hall, but
4420		-	only if the legal title to the municipal convention hall is
4421		-	transferred to the municipality without any further
4422		-	consideration by or on behalf of the municipality at the time
4423		-	of the completion of the municipal convention hall or upon the
4424		-	retirement or redemption of any bonds or other debt
4425		-	instruments issued by the public-facilities corporation in
4426		-	connection with the development of the municipal convention
4427		-	hall. This exemption includes existing public-facilities
4428		-	corporations as provided in Section 11-65-25 of the Illinois
4429		-	Municipal Code. This paragraph is exempt from the provisions
4430		-
4431		-
4432		-	of Section 3-75.
4433		-	(29) Beginning January 1, 2017 and through December 31,
4434		-	2026, menstrual pads, tampons, and menstrual cups.
4435		-	(30) Tangible personal property transferred to a purchaser
4436		-	who is exempt from the tax imposed by this Act by operation of
4437		-	federal law. This paragraph is exempt from the provisions of
4438		-	Section 3-75.
4439		-	(31) Qualified tangible personal property used in the
4440		-	construction or operation of a data center that has been
4441		-	granted a certificate of exemption by the Department of
4442		-	Commerce and Economic Opportunity, whether that tangible
4443		-	personal property is purchased by the owner, operator, or
4444		-	tenant of the data center or by a contractor or subcontractor
4445		-	of the owner, operator, or tenant. Data centers that would
4446		-	have qualified for a certificate of exemption prior to January
4447		-	1, 2020 had Public Act 101-31 this amendatory Act of the 101st
4448		-	General Assembly been in effect, may apply for and obtain an
4449		-	exemption for subsequent purchases of computer equipment or
4450		-	enabling software purchased or leased to upgrade, supplement,
4451		-	or replace computer equipment or enabling software purchased
4452		-	or leased in the original investment that would have
4453		-	qualified.
4454		-	The Department of Commerce and Economic Opportunity shall
4455		-	grant a certificate of exemption under this item (31) to
4456		-	qualified data centers as defined by Section 605-1025 of the
4457		-	Department of Commerce and Economic Opportunity Law of the
4458		-
4459		-
4460		-	Civil Administrative Code of Illinois.
4461		-	For the purposes of this item (31):
4462		-	"Data center" means a building or a series of
4463		-	buildings rehabilitated or constructed to house working
4464		-	servers in one physical location or multiple sites within
4465		-	the State of Illinois.
4466		-	"Qualified tangible personal property" means:
4467		-	electrical systems and equipment; climate control and
4468		-	chilling equipment and systems; mechanical systems and
4469		-	equipment; monitoring and secure systems; emergency
4470		-	generators; hardware; computers; servers; data storage
4471		-	devices; network connectivity equipment; racks; cabinets;
4472		-	telecommunications cabling infrastructure; raised floor
4473		-	systems; peripheral components or systems; software;
4474		-	mechanical, electrical, or plumbing systems; battery
4475		-	systems; cooling systems and towers; temperature control
4476		-	systems; other cabling; and other data center
4477		-	infrastructure equipment and systems necessary to operate
4478		-	qualified tangible personal property, including fixtures;
4479		-	and component parts of any of the foregoing, including
4480		-	installation, maintenance, repair, refurbishment, and
4481		-	replacement of qualified tangible personal property to
4482		-	generate, transform, transmit, distribute, or manage
4483		-	electricity necessary to operate qualified tangible
4484		-	personal property; and all other tangible personal
4485		-	property that is essential to the operations of a computer
4486		-
4487		-
4488		-	data center. The term "qualified tangible personal
4489		-	property" also includes building materials physically
4490		-	incorporated in to the qualifying data center. To document
4491		-	the exemption allowed under this Section, the retailer
4492		-	must obtain from the purchaser a copy of the certificate
4493		-	of eligibility issued by the Department of Commerce and
4494		-	Economic Opportunity.
4495		-	This item (31) is exempt from the provisions of Section
4496		-	3-75.
4497		-	(32) Beginning July 1, 2022, breast pumps, breast pump
4498		-	collection and storage supplies, and breast pump kits. This
4499		-	item (32) is exempt from the provisions of Section 3-75. As
4500		-	used in this item (32):
4501		-	"Breast pump" means an electrically controlled or
4502		-	manually controlled pump device designed or marketed to be
4503		-	used to express milk from a human breast during lactation,
4504		-	including the pump device and any battery, AC adapter, or
4505		-	other power supply unit that is used to power the pump
4506		-	device and is packaged and sold with the pump device at the
4507		-	time of sale.
4508		-	"Breast pump collection and storage supplies" means
4509		-	items of tangible personal property designed or marketed
4510		-	to be used in conjunction with a breast pump to collect
4511		-	milk expressed from a human breast and to store collected
4512		-	milk until it is ready for consumption.
4513		-	"Breast pump collection and storage supplies"
4514		-
4515		-
4516		-	includes, but is not limited to: breast shields and breast
4517		-	shield connectors; breast pump tubes and tubing adapters;
4518		-	breast pump valves and membranes; backflow protectors and
4519		-	backflow protector adaptors; bottles and bottle caps
4520		-	specific to the operation of the breast pump; and breast
4521		-	milk storage bags.
4522		-	"Breast pump collection and storage supplies" does not
4523		-	include: (1) bottles and bottle caps not specific to the
4524		-	operation of the breast pump; (2) breast pump travel bags
4525		-	and other similar carrying accessories, including ice
4526		-	packs, labels, and other similar products; (3) breast pump
4527		-	cleaning supplies; (4) nursing bras, bra pads, breast
4528		-	shells, and other similar products; and (5) creams,
4529		-	ointments, and other similar products that relieve
4530		-	breastfeeding-related symptoms or conditions of the
4531		-	breasts or nipples, unless sold as part of a breast pump
4532		-	kit that is pre-packaged by the breast pump manufacturer
4533		-	or distributor.
4534		-	"Breast pump kit" means a kit that: (1) contains no
4535		-	more than a breast pump, breast pump collection and
4536		-	storage supplies, a rechargeable battery for operating the
4537		-	breast pump, a breastmilk cooler, bottle stands, ice
4538		-	packs, and a breast pump carrying case; and (2) is
4539		-	pre-packaged as a breast pump kit by the breast pump
4540		-	manufacturer or distributor.
4541		-	(33) (32) Tangible personal property sold by or on behalf
4542		-
4543		-
4544		-	of the State Treasurer pursuant to the Revised Uniform
4545		-	Unclaimed Property Act. This item (33) (32) is exempt from the
4546		-	provisions of Section 3-75.
4547		-	(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
4548		-	101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
4549		-	70, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
4550		-	75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
4551		-	Section 15-15. The Service Occupation Tax Act is amended
4552		-	by changing Section 3-5 as follows:
4553		-	(35 ILCS 115/3-5)
4554		-	Sec. 3-5. Exemptions. The following tangible personal
4555		-	property is exempt from the tax imposed by this Act:
4556		-	(1) Personal property sold by a corporation, society,
4557		-	association, foundation, institution, or organization, other
4558		-	than a limited liability company, that is organized and
4559		-	operated as a not-for-profit service enterprise for the
4560		-	benefit of persons 65 years of age or older if the personal
4561		-	property was not purchased by the enterprise for the purpose
4562		-	of resale by the enterprise.
4563		-	(2) Personal property purchased by a not-for-profit
4564		-	Illinois county fair association for use in conducting,
4565		-	operating, or promoting the county fair.
4566		-	(3) Personal property purchased by any not-for-profit arts
4567		-	or cultural organization that establishes, by proof required
4568		-
4569		-
4570		-	by the Department by rule, that it has received an exemption
4571		-	under Section 501(c)(3) of the Internal Revenue Code and that
4572		-	is organized and operated primarily for the presentation or
4573		-	support of arts or cultural programming, activities, or
4574		-	services. These organizations include, but are not limited to,
4575		-	music and dramatic arts organizations such as symphony
4576		-	orchestras and theatrical groups, arts and cultural service
4577		-	organizations, local arts councils, visual arts organizations,
4578		-	and media arts organizations. On and after July 1, 2001 (the
4579		-	effective date of Public Act 92-35), however, an entity
4580		-	otherwise eligible for this exemption shall not make tax-free
4581		-	purchases unless it has an active identification number issued
4582		-	by the Department.
4583		-	(4) Legal tender, currency, medallions, or gold or silver
4584		-	coinage issued by the State of Illinois, the government of the
4585		-	United States of America, or the government of any foreign
4586		-	country, and bullion.
4587		-	(5) Until July 1, 2003 and beginning again on September 1,
4588		-	2004 through August 30, 2014, graphic arts machinery and
4589		-	equipment, including repair and replacement parts, both new
4590		-	and used, and including that manufactured on special order or
4591		-	purchased for lease, certified by the purchaser to be used
4592		-	primarily for graphic arts production. Equipment includes
4593		-	chemicals or chemicals acting as catalysts but only if the
4594		-	chemicals or chemicals acting as catalysts effect a direct and
4595		-	immediate change upon a graphic arts product. Beginning on
4596		-
4597		-
4598		-	July 1, 2017, graphic arts machinery and equipment is included
4599		-	in the manufacturing and assembling machinery and equipment
4600		-	exemption under Section 2 of this Act.
4601		-	(6) Personal property sold by a teacher-sponsored student
4602		-	organization affiliated with an elementary or secondary school
4603		-	located in Illinois.
4604		-	(7) Farm machinery and equipment, both new and used,
4605		-	including that manufactured on special order, certified by the
4606		-	purchaser to be used primarily for production agriculture or
4607		-	State or federal agricultural programs, including individual
4608		-	replacement parts for the machinery and equipment, including
4609		-	machinery and equipment purchased for lease, and including
4610		-	implements of husbandry defined in Section 1-130 of the
4611		-	Illinois Vehicle Code, farm machinery and agricultural
4612		-	chemical and fertilizer spreaders, and nurse wagons required
4613		-	to be registered under Section 3-809 of the Illinois Vehicle
4614		-	Code, but excluding other motor vehicles required to be
4615		-	registered under the Illinois Vehicle Code. Horticultural
4616		-	polyhouses or hoop houses used for propagating, growing, or
4617		-	overwintering plants shall be considered farm machinery and
4618		-	equipment under this item (7). Agricultural chemical tender
4619		-	tanks and dry boxes shall include units sold separately from a
4620		-	motor vehicle required to be licensed and units sold mounted
4621		-	on a motor vehicle required to be licensed if the selling price
4622		-	of the tender is separately stated.
4623		-	Farm machinery and equipment shall include precision
4624		-
4625		-
4626		-	farming equipment that is installed or purchased to be
4627		-	installed on farm machinery and equipment including, but not
4628		-	limited to, tractors, harvesters, sprayers, planters, seeders,
4629		-	or spreaders. Precision farming equipment includes, but is not
4630		-	limited to, soil testing sensors, computers, monitors,
4631		-	software, global positioning and mapping systems, and other
4632		-	such equipment.
4633		-	Farm machinery and equipment also includes computers,
4634		-	sensors, software, and related equipment used primarily in the
4635		-	computer-assisted operation of production agriculture
4636		-	facilities, equipment, and activities such as, but not limited
4637		-	to, the collection, monitoring, and correlation of animal and
4638		-	crop data for the purpose of formulating animal diets and
4639		-	agricultural chemicals.
4640		-	Beginning on January 1, 2024, farm machinery and equipment
4641		-	also includes electrical power generation equipment used
4642		-	primarily for production agriculture.
4643		-	This item (7) is exempt from the provisions of Section
4644		-	3-55.
4645		-	(8) Until June 30, 2013, fuel and petroleum products sold
4646		-	to or used by an air common carrier, certified by the carrier
4647		-	to be used for consumption, shipment, or storage in the
4648		-	conduct of its business as an air common carrier, for a flight
4649		-	destined for or returning from a location or locations outside
4650		-	the United States without regard to previous or subsequent
4651		-	domestic stopovers.
4652		-
4653		-
4654		-	Beginning July 1, 2013, fuel and petroleum products sold
4655		-	to or used by an air carrier, certified by the carrier to be
4656		-	used for consumption, shipment, or storage in the conduct of
4657		-	its business as an air common carrier, for a flight that (i) is
4658		-	engaged in foreign trade or is engaged in trade between the
4659		-	United States and any of its possessions and (ii) transports
4660		-	at least one individual or package for hire from the city of
4661		-	origination to the city of final destination on the same
4662		-	aircraft, without regard to a change in the flight number of
4663		-	that aircraft.
4664		-	(9) Proceeds of mandatory service charges separately
4665		-	stated on customers' bills for the purchase and consumption of
4666		-	food and beverages, to the extent that the proceeds of the
4667		-	service charge are in fact turned over as tips or as a
4668		-	substitute for tips to the employees who participate directly
4669		-	in preparing, serving, hosting or cleaning up the food or
4670		-	beverage function with respect to which the service charge is
4671		-	imposed.
4672		-	(10) Until July 1, 2003, oil field exploration, drilling,
4673		-	and production equipment, including (i) rigs and parts of
4674		-	rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
4675		-	pipe and tubular goods, including casing and drill strings,
4676		-	(iii) pumps and pump-jack units, (iv) storage tanks and flow
4677		-	lines, (v) any individual replacement part for oil field
4678		-	exploration, drilling, and production equipment, and (vi)
4679		-	machinery and equipment purchased for lease; but excluding
4680		-
4681		-
4682		-	motor vehicles required to be registered under the Illinois
4683		-	Vehicle Code.
4684		-	(11) Photoprocessing machinery and equipment, including
4685		-	repair and replacement parts, both new and used, including
4686		-	that manufactured on special order, certified by the purchaser
4687		-	to be used primarily for photoprocessing, and including
4688		-	photoprocessing machinery and equipment purchased for lease.
4689		-	(12) Until July 1, 2028, coal and aggregate exploration,
4690		-	mining, off-highway hauling, processing, maintenance, and
4691		-	reclamation equipment, including replacement parts and
4692		-	equipment, and including equipment purchased for lease, but
4693		-	excluding motor vehicles required to be registered under the
4694		-	Illinois Vehicle Code. The changes made to this Section by
4695		-	Public Act 97-767 apply on and after July 1, 2003, but no claim
4696		-	for credit or refund is allowed on or after August 16, 2013
4697		-	(the effective date of Public Act 98-456) for such taxes paid
4698		-	during the period beginning July 1, 2003 and ending on August
4699		-	16, 2013 (the effective date of Public Act 98-456).
4700		-	(13) Beginning January 1, 1992 and through June 30, 2016,
4701		-	food for human consumption that is to be consumed off the
4702		-	premises where it is sold (other than alcoholic beverages,
4703		-	soft drinks and food that has been prepared for immediate
4704		-	consumption) and prescription and non-prescription medicines,
4705		-	drugs, medical appliances, and insulin, urine testing
4706		-	materials, syringes, and needles used by diabetics, for human
4707		-	use, when purchased for use by a person receiving medical
4708		-
4709		-
4710		-	assistance under Article V of the Illinois Public Aid Code who
4711		-	resides in a licensed long-term care facility, as defined in
4712		-	the Nursing Home Care Act, or in a licensed facility as defined
4713		-	in the ID/DD Community Care Act, the MC/DD Act, or the
4714		-	Specialized Mental Health Rehabilitation Act of 2013.
4715		-	(14) Semen used for artificial insemination of livestock
4716		-	for direct agricultural production.
4717		-	(15) Horses, or interests in horses, registered with and
4718		-	meeting the requirements of any of the Arabian Horse Club
4719		-	Registry of America, Appaloosa Horse Club, American Quarter
4720		-	Horse Association, United States Trotting Association, or
4721		-	Jockey Club, as appropriate, used for purposes of breeding or
4722		-	racing for prizes. This item (15) is exempt from the
4723		-	provisions of Section 3-55, and the exemption provided for
4724		-	under this item (15) applies for all periods beginning May 30,
4725		-	1995, but no claim for credit or refund is allowed on or after
4726		-	January 1, 2008 (the effective date of Public Act 95-88) for
4727		-	such taxes paid during the period beginning May 30, 2000 and
4728		-	ending on January 1, 2008 (the effective date of Public Act
4729		-	95-88).
4730		-	(16) Computers and communications equipment utilized for
4731		-	any hospital purpose and equipment used in the diagnosis,
4732		-	analysis, or treatment of hospital patients sold to a lessor
4733		-	who leases the equipment, under a lease of one year or longer
4734		-	executed or in effect at the time of the purchase, to a
4735		-	hospital that has been issued an active tax exemption
4736		-
4737		-
4738		-	identification number by the Department under Section 1g of
4739		-	the Retailers' Occupation Tax Act.
4740		-	(17) Personal property sold to a lessor who leases the
4741		-	property, under a lease of one year or longer executed or in
4742		-	effect at the time of the purchase, to a governmental body that
4743		-	has been issued an active tax exemption identification number
4744		-	by the Department under Section 1g of the Retailers'
4745		-	Occupation Tax Act.
4746		-	(18) Beginning with taxable years ending on or after
4747		-	December 31, 1995 and ending with taxable years ending on or
4748		-	before December 31, 2004, personal property that is donated
4749		-	for disaster relief to be used in a State or federally declared
4750		-	disaster area in Illinois or bordering Illinois by a
4751		-	manufacturer or retailer that is registered in this State to a
4752		-	corporation, society, association, foundation, or institution
4753		-	that has been issued a sales tax exemption identification
4754		-	number by the Department that assists victims of the disaster
4755		-	who reside within the declared disaster area.
4756		-	(19) Beginning with taxable years ending on or after
4757		-	December 31, 1995 and ending with taxable years ending on or
4758		-	before December 31, 2004, personal property that is used in
4759		-	the performance of infrastructure repairs in this State,
4760		-	including but not limited to municipal roads and streets,
4761		-	access roads, bridges, sidewalks, waste disposal systems,
4762		-	water and sewer line extensions, water distribution and
4763		-	purification facilities, storm water drainage and retention
4764		-
4765		-
4766		-	facilities, and sewage treatment facilities, resulting from a
4767		-	State or federally declared disaster in Illinois or bordering
4768		-	Illinois when such repairs are initiated on facilities located
4769		-	in the declared disaster area within 6 months after the
4770		-	disaster.
4771		-	(20) Beginning July 1, 1999, game or game birds sold at a
4772		-	"game breeding and hunting preserve area" as that term is used
4773		-	in the Wildlife Code. This paragraph is exempt from the
4774		-	provisions of Section 3-55.
4775		-	(21) A motor vehicle, as that term is defined in Section
4776		-	1-146 of the Illinois Vehicle Code, that is donated to a
4777		-	corporation, limited liability company, society, association,
4778		-	foundation, or institution that is determined by the
4779		-	Department to be organized and operated exclusively for
4780		-	educational purposes. For purposes of this exemption, "a
4781		-	corporation, limited liability company, society, association,
4782		-	foundation, or institution organized and operated exclusively
4783		-	for educational purposes" means all tax-supported public
4784		-	schools, private schools that offer systematic instruction in
4785		-	useful branches of learning by methods common to public
4786		-	schools and that compare favorably in their scope and
4787		-	intensity with the course of study presented in tax-supported
4788		-	schools, and vocational or technical schools or institutes
4789		-	organized and operated exclusively to provide a course of
4790		-	study of not less than 6 weeks duration and designed to prepare
4791		-	individuals to follow a trade or to pursue a manual,
4792		-
4793		-
4794		-	technical, mechanical, industrial, business, or commercial
4795		-	occupation.
4796		-	(22) Beginning January 1, 2000, personal property,
4797		-	including food, purchased through fundraising events for the
4798		-	benefit of a public or private elementary or secondary school,
4799		-	a group of those schools, or one or more school districts if
4800		-	the events are sponsored by an entity recognized by the school
4801		-	district that consists primarily of volunteers and includes
4802		-	parents and teachers of the school children. This paragraph
4803		-	does not apply to fundraising events (i) for the benefit of
4804		-	private home instruction or (ii) for which the fundraising
4805		-	entity purchases the personal property sold at the events from
4806		-	another individual or entity that sold the property for the
4807		-	purpose of resale by the fundraising entity and that profits
4808		-	from the sale to the fundraising entity. This paragraph is
4809		-	exempt from the provisions of Section 3-55.
4810		-	(23) Beginning January 1, 2000 and through December 31,
4811		-	2001, new or used automatic vending machines that prepare and
4812		-	serve hot food and beverages, including coffee, soup, and
4813		-	other items, and replacement parts for these machines.
4814		-	Beginning January 1, 2002 and through June 30, 2003, machines
4815		-	and parts for machines used in commercial, coin-operated
4816		-	amusement and vending business if a use or occupation tax is
4817		-	paid on the gross receipts derived from the use of the
4818		-	commercial, coin-operated amusement and vending machines. This
4819		-	paragraph is exempt from the provisions of Section 3-55.
4820		-
4821		-
4822		-	(24) Beginning on August 2, 2001 (the effective date of
4823		-	Public Act 92-227), computers and communications equipment
4824		-	utilized for any hospital purpose and equipment used in the
4825		-	diagnosis, analysis, or treatment of hospital patients sold to
4826		-	a lessor who leases the equipment, under a lease of one year or
4827		-	longer executed or in effect at the time of the purchase, to a
4828		-	hospital that has been issued an active tax exemption
4829		-	identification number by the Department under Section 1g of
4830		-	the Retailers' Occupation Tax Act. This paragraph is exempt
4831		-	from the provisions of Section 3-55.
4832		-	(25) Beginning on August 2, 2001 (the effective date of
4833		-	Public Act 92-227), personal property sold to a lessor who
4834		-	leases the property, under a lease of one year or longer
4835		-	executed or in effect at the time of the purchase, to a
4836		-	governmental body that has been issued an active tax exemption
4837		-	identification number by the Department under Section 1g of
4838		-	the Retailers' Occupation Tax Act. This paragraph is exempt
4839		-	from the provisions of Section 3-55.
4840		-	(26) Beginning on January 1, 2002 and through June 30,
4841		-	2016, tangible personal property purchased from an Illinois
4842		-	retailer by a taxpayer engaged in centralized purchasing
4843		-	activities in Illinois who will, upon receipt of the property
4844		-	in Illinois, temporarily store the property in Illinois (i)
4845		-	for the purpose of subsequently transporting it outside this
4846		-	State for use or consumption thereafter solely outside this
4847		-	State or (ii) for the purpose of being processed, fabricated,
4848		-
4849		-
4850		-	or manufactured into, attached to, or incorporated into other
4851		-	tangible personal property to be transported outside this
4852		-	State and thereafter used or consumed solely outside this
4853		-	State. The Director of Revenue shall, pursuant to rules
4854		-	adopted in accordance with the Illinois Administrative
4855		-	Procedure Act, issue a permit to any taxpayer in good standing
4856		-	with the Department who is eligible for the exemption under
4857		-	this paragraph (26). The permit issued under this paragraph
4858		-	(26) shall authorize the holder, to the extent and in the
4859		-	manner specified in the rules adopted under this Act, to
4860		-	purchase tangible personal property from a retailer exempt
4861		-	from the taxes imposed by this Act. Taxpayers shall maintain
4862		-	all necessary books and records to substantiate the use and
4863		-	consumption of all such tangible personal property outside of
4864		-	the State of Illinois.
4865		-	(27) Beginning January 1, 2008, tangible personal property
4866		-	used in the construction or maintenance of a community water
4867		-	supply, as defined under Section 3.145 of the Environmental
4868		-	Protection Act, that is operated by a not-for-profit
4869		-	corporation that holds a valid water supply permit issued
4870		-	under Title IV of the Environmental Protection Act. This
4871		-	paragraph is exempt from the provisions of Section 3-55.
4872		-	(28) Tangible personal property sold to a
4873		-	public-facilities corporation, as described in Section
4874		-	11-65-10 of the Illinois Municipal Code, for purposes of
4875		-	constructing or furnishing a municipal convention hall, but
4876		-
4877		-
4878		-	only if the legal title to the municipal convention hall is
4879		-	transferred to the municipality without any further
4880		-	consideration by or on behalf of the municipality at the time
4881		-	of the completion of the municipal convention hall or upon the
4882		-	retirement or redemption of any bonds or other debt
4883		-	instruments issued by the public-facilities corporation in
4884		-	connection with the development of the municipal convention
4885		-	hall. This exemption includes existing public-facilities
4886		-	corporations as provided in Section 11-65-25 of the Illinois
4887		-	Municipal Code. This paragraph is exempt from the provisions
4888		-	of Section 3-55.
4889		-	(29) Beginning January 1, 2010 and continuing through
4890		-	December 31, 2024, materials, parts, equipment, components,
4891		-	and furnishings incorporated into or upon an aircraft as part
4892		-	of the modification, refurbishment, completion, replacement,
4893		-	repair, or maintenance of the aircraft. This exemption
4894		-	includes consumable supplies used in the modification,
4895		-	refurbishment, completion, replacement, repair, and
4896		-	maintenance of aircraft, but excludes any materials, parts,
4897		-	equipment, components, and consumable supplies used in the
4898		-	modification, replacement, repair, and maintenance of aircraft
4899		-	engines or power plants, whether such engines or power plants
4900		-	are installed or uninstalled upon any such aircraft.
4901		-	"Consumable supplies" include, but are not limited to,
4902		-	adhesive, tape, sandpaper, general purpose lubricants,
4903		-	cleaning solution, latex gloves, and protective films. This
4904		-
4905		-
4906		-	exemption applies only to the transfer of qualifying tangible
4907		-	personal property incident to the modification, refurbishment,
4908		-	completion, replacement, repair, or maintenance of an aircraft
4909		-	by persons who (i) hold an Air Agency Certificate and are
4910		-	empowered to operate an approved repair station by the Federal
4911		-	Aviation Administration, (ii) have a Class IV Rating, and
4912		-	(iii) conduct operations in accordance with Part 145 of the
4913		-	Federal Aviation Regulations. The exemption does not include
4914		-	aircraft operated by a commercial air carrier providing
4915		-	scheduled passenger air service pursuant to authority issued
4916		-	under Part 121 or Part 129 of the Federal Aviation
4917		-	Regulations. The changes made to this paragraph (29) by Public
4918		-	Act 98-534 are declarative of existing law. It is the intent of
4919		-	the General Assembly that the exemption under this paragraph
4920		-	(29) applies continuously from January 1, 2010 through
4921		-	December 31, 2024; however, no claim for credit or refund is
4922		-	allowed for taxes paid as a result of the disallowance of this
4923		-	exemption on or after January 1, 2015 and prior to February 5,
4924		-	2020 (the effective date of Public Act 101-629) this
4925		-	amendatory Act of the 101st General Assembly.
4926		-	(30) Beginning January 1, 2017 and through December 31,
4927		-	2026, menstrual pads, tampons, and menstrual cups.
4928		-	(31) Tangible personal property transferred to a purchaser
4929		-	who is exempt from tax by operation of federal law. This
4930		-	paragraph is exempt from the provisions of Section 3-55.
4931		-	(32) Qualified tangible personal property used in the
4932		-
4933		-
4934		-	construction or operation of a data center that has been
4935		-	granted a certificate of exemption by the Department of
4936		-	Commerce and Economic Opportunity, whether that tangible
4937		-	personal property is purchased by the owner, operator, or
4938		-	tenant of the data center or by a contractor or subcontractor
4939		-	of the owner, operator, or tenant. Data centers that would
4940		-	have qualified for a certificate of exemption prior to January
4941		-	1, 2020 had Public Act 101-31 this amendatory Act of the 101st
4942		-	General Assembly been in effect, may apply for and obtain an
4943		-	exemption for subsequent purchases of computer equipment or
4944		-	enabling software purchased or leased to upgrade, supplement,
4945		-	or replace computer equipment or enabling software purchased
4946		-	or leased in the original investment that would have
4947		-	qualified.
4948		-	The Department of Commerce and Economic Opportunity shall
4949		-	grant a certificate of exemption under this item (32) to
4950		-	qualified data centers as defined by Section 605-1025 of the
4951		-	Department of Commerce and Economic Opportunity Law of the
4952		-	Civil Administrative Code of Illinois.
4953		-	For the purposes of this item (32):
4954		-	"Data center" means a building or a series of
4955		-	buildings rehabilitated or constructed to house working
4956		-	servers in one physical location or multiple sites within
4957		-	the State of Illinois.
4958		-	"Qualified tangible personal property" means:
4959		-	electrical systems and equipment; climate control and
4960		-
4961		-
4962		-	chilling equipment and systems; mechanical systems and
4963		-	equipment; monitoring and secure systems; emergency
4964		-	generators; hardware; computers; servers; data storage
4965		-	devices; network connectivity equipment; racks; cabinets;
4966		-	telecommunications cabling infrastructure; raised floor
4967		-	systems; peripheral components or systems; software;
4968		-	mechanical, electrical, or plumbing systems; battery
4969		-	systems; cooling systems and towers; temperature control
4970		-	systems; other cabling; and other data center
4971		-	infrastructure equipment and systems necessary to operate
4972		-	qualified tangible personal property, including fixtures;
4973		-	and component parts of any of the foregoing, including
4974		-	installation, maintenance, repair, refurbishment, and
4975		-	replacement of qualified tangible personal property to
4976		-	generate, transform, transmit, distribute, or manage
4977		-	electricity necessary to operate qualified tangible
4978		-	personal property; and all other tangible personal
4979		-	property that is essential to the operations of a computer
4980		-	data center. The term "qualified tangible personal
4981		-	property" also includes building materials physically
4982		-	incorporated in to the qualifying data center. To document
4983		-	the exemption allowed under this Section, the retailer
4984		-	must obtain from the purchaser a copy of the certificate
4985		-	of eligibility issued by the Department of Commerce and
4986		-	Economic Opportunity.
4987		-	This item (32) is exempt from the provisions of Section
4988		-
4989		-
4990		-	3-55.
4991		-	(33) Beginning July 1, 2022, breast pumps, breast pump
4992		-	collection and storage supplies, and breast pump kits. This
4993		-	item (33) is exempt from the provisions of Section 3-55. As
4994		-	used in this item (33):
4995		-	"Breast pump" means an electrically controlled or
4996		-	manually controlled pump device designed or marketed to be
4997		-	used to express milk from a human breast during lactation,
4998		-	including the pump device and any battery, AC adapter, or
4999		-	other power supply unit that is used to power the pump
5000		-	device and is packaged and sold with the pump device at the
5001		-	time of sale.
5002		-	"Breast pump collection and storage supplies" means
5003		-	items of tangible personal property designed or marketed
5004		-	to be used in conjunction with a breast pump to collect
5005		-	milk expressed from a human breast and to store collected
5006		-	milk until it is ready for consumption.
5007		-	"Breast pump collection and storage supplies"
5008		-	includes, but is not limited to: breast shields and breast
5009		-	shield connectors; breast pump tubes and tubing adapters;
5010		-	breast pump valves and membranes; backflow protectors and
5011		-	backflow protector adaptors; bottles and bottle caps
5012		-	specific to the operation of the breast pump; and breast
5013		-	milk storage bags.
5014		-	"Breast pump collection and storage supplies" does not
5015		-	include: (1) bottles and bottle caps not specific to the
5016		-
5017		-
5018		-	operation of the breast pump; (2) breast pump travel bags
5019		-	and other similar carrying accessories, including ice
5020		-	packs, labels, and other similar products; (3) breast pump
5021		-	cleaning supplies; (4) nursing bras, bra pads, breast
5022		-	shells, and other similar products; and (5) creams,
5023		-	ointments, and other similar products that relieve
5024		-	breastfeeding-related symptoms or conditions of the
5025		-	breasts or nipples, unless sold as part of a breast pump
5026		-	kit that is pre-packaged by the breast pump manufacturer
5027		-	or distributor.
5028		-	"Breast pump kit" means a kit that: (1) contains no
5029		-	more than a breast pump, breast pump collection and
5030		-	storage supplies, a rechargeable battery for operating the
5031		-	breast pump, a breastmilk cooler, bottle stands, ice
5032		-	packs, and a breast pump carrying case; and (2) is
5033		-	pre-packaged as a breast pump kit by the breast pump
5034		-	manufacturer or distributor.
5035		-	(34) (33) Tangible personal property sold by or on behalf
5036		-	of the State Treasurer pursuant to the Revised Uniform
5037		-	Unclaimed Property Act. This item (34) (33) is exempt from the
5038		-	provisions of Section 3-55.
5039		-	(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
5040		-	101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
5041		-	70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
5042		-	75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
5043		-
5044		-
5045		-	Section 15-20. The Retailers' Occupation Tax Act is
5046		-	amended by changing Section 2-5 as follows:
5047		-	(35 ILCS 120/2-5)
5048		-	Sec. 2-5. Exemptions. Gross receipts from proceeds from
5049		-	the sale of the following tangible personal property are
5050		-	exempt from the tax imposed by this Act:
5051		-	(1) Farm chemicals.
5052		-	(2) Farm machinery and equipment, both new and used,
5053		-	including that manufactured on special order, certified by
5054		-	the purchaser to be used primarily for production
5055		-	agriculture or State or federal agricultural programs,
5056		-	including individual replacement parts for the machinery
5057		-	and equipment, including machinery and equipment purchased
5058		-	for lease, and including implements of husbandry defined
5059		-	in Section 1-130 of the Illinois Vehicle Code, farm
5060		-	machinery and agricultural chemical and fertilizer
5061		-	spreaders, and nurse wagons required to be registered
5062		-	under Section 3-809 of the Illinois Vehicle Code, but
5063		-	excluding other motor vehicles required to be registered
5064		-	under the Illinois Vehicle Code. Horticultural polyhouses
5065		-	or hoop houses used for propagating, growing, or
5066		-	overwintering plants shall be considered farm machinery
5067		-	and equipment under this item (2). Agricultural chemical
5068		-	tender tanks and dry boxes shall include units sold
5069		-	separately from a motor vehicle required to be licensed
5070		-
5071		-
5072		-	and units sold mounted on a motor vehicle required to be
5073		-	licensed, if the selling price of the tender is separately
5074		-	stated.
5075		-	Farm machinery and equipment shall include precision
5076		-	farming equipment that is installed or purchased to be
5077		-	installed on farm machinery and equipment including, but
5078		-	not limited to, tractors, harvesters, sprayers, planters,
5079		-	seeders, or spreaders. Precision farming equipment
5080		-	includes, but is not limited to, soil testing sensors,
5081		-	computers, monitors, software, global positioning and
5082		-	mapping systems, and other such equipment.
5083		-	Farm machinery and equipment also includes computers,
5084		-	sensors, software, and related equipment used primarily in
5085		-	the computer-assisted operation of production agriculture
5086		-	facilities, equipment, and activities such as, but not
5087		-	limited to, the collection, monitoring, and correlation of
5088		-	animal and crop data for the purpose of formulating animal
5089		-	diets and agricultural chemicals.
5090		-	Beginning on January 1, 2024, farm machinery and
5091		-	equipment also includes electrical power generation
5092		-	equipment used primarily for production agriculture.
5093		-	This item (2) is exempt from the provisions of Section
5094		-	2-70.
5095		-	(3) Until July 1, 2003, distillation machinery and
5096		-	equipment, sold as a unit or kit, assembled or installed
5097		-	by the retailer, certified by the user to be used only for
5098		-
5099		-
5100		-	the production of ethyl alcohol that will be used for
5101		-	consumption as motor fuel or as a component of motor fuel
5102		-	for the personal use of the user, and not subject to sale
5103		-	or resale.
5104		-	(4) Until July 1, 2003 and beginning again September
5105		-	1, 2004 through August 30, 2014, graphic arts machinery
5106		-	and equipment, including repair and replacement parts,
5107		-	both new and used, and including that manufactured on
5108		-	special order or purchased for lease, certified by the
5109		-	purchaser to be used primarily for graphic arts
5110		-	production. Equipment includes chemicals or chemicals
5111		-	acting as catalysts but only if the chemicals or chemicals
5112		-	acting as catalysts effect a direct and immediate change
5113		-	upon a graphic arts product. Beginning on July 1, 2017,
5114		-	graphic arts machinery and equipment is included in the
5115		-	manufacturing and assembling machinery and equipment
5116		-	exemption under paragraph (14).
5117		-	(5) A motor vehicle that is used for automobile
5118		-	renting, as defined in the Automobile Renting Occupation
5119		-	and Use Tax Act. This paragraph is exempt from the
5120		-	provisions of Section 2-70.
5121		-	(6) Personal property sold by a teacher-sponsored
5122		-	student organization affiliated with an elementary or
5123		-	secondary school located in Illinois.
5124		-	(7) Until July 1, 2003, proceeds of that portion of
5125		-	the selling price of a passenger car the sale of which is
5126		-
5127		-
5128		-	subject to the Replacement Vehicle Tax.
5129		-	(8) Personal property sold to an Illinois county fair
5130		-	association for use in conducting, operating, or promoting
5131		-	the county fair.
5132		-	(9) Personal property sold to a not-for-profit arts or
5133		-	cultural organization that establishes, by proof required
5134		-	by the Department by rule, that it has received an
5135		-	exemption under Section 501(c)(3) of the Internal Revenue
5136		-	Code and that is organized and operated primarily for the
5137		-	presentation or support of arts or cultural programming,
5138		-	activities, or services. These organizations include, but
5139		-	are not limited to, music and dramatic arts organizations
5140		-	such as symphony orchestras and theatrical groups, arts
5141		-	and cultural service organizations, local arts councils,
5142		-	visual arts organizations, and media arts organizations.
5143		-	On and after July 1, 2001 (the effective date of Public Act
5144		-	92-35), however, an entity otherwise eligible for this
5145		-	exemption shall not make tax-free purchases unless it has
5146		-	an active identification number issued by the Department.
5147		-	(10) Personal property sold by a corporation, society,
5148		-	association, foundation, institution, or organization,
5149		-	other than a limited liability company, that is organized
5150		-	and operated as a not-for-profit service enterprise for
5151		-	the benefit of persons 65 years of age or older if the
5152		-	personal property was not purchased by the enterprise for
5153		-	the purpose of resale by the enterprise.
5154		-
5155		-
5156		-	(11) Personal property sold to a governmental body, to
5157		-	a corporation, society, association, foundation, or
5158		-	institution organized and operated exclusively for
5159		-	charitable, religious, or educational purposes, or to a
5160		-	not-for-profit corporation, society, association,
5161		-	foundation, institution, or organization that has no
5162		-	compensated officers or employees and that is organized
5163		-	and operated primarily for the recreation of persons 55
5164		-	years of age or older. A limited liability company may
5165		-	qualify for the exemption under this paragraph only if the
5166		-	limited liability company is organized and operated
5167		-	exclusively for educational purposes. On and after July 1,
5168		-	1987, however, no entity otherwise eligible for this
5169		-	exemption shall make tax-free purchases unless it has an
5170		-	active identification number issued by the Department.
5171		-	(12) (Blank).
5172		-	(12-5) On and after July 1, 2003 and through June 30,
5173		-	2004, motor vehicles of the second division with a gross
5174		-	vehicle weight in excess of 8,000 pounds that are subject
5175		-	to the commercial distribution fee imposed under Section
5176		-	3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
5177		-	2004 and through June 30, 2005, the use in this State of
5178		-	motor vehicles of the second division: (i) with a gross
5179		-	vehicle weight rating in excess of 8,000 pounds; (ii) that
5180		-	are subject to the commercial distribution fee imposed
5181		-	under Section 3-815.1 of the Illinois Vehicle Code; and
5182		-
5183		-
5184		-	(iii) that are primarily used for commercial purposes.
5185		-	Through June 30, 2005, this exemption applies to repair
5186		-	and replacement parts added after the initial purchase of
5187		-	such a motor vehicle if that motor vehicle is used in a
5188		-	manner that would qualify for the rolling stock exemption
5189		-	otherwise provided for in this Act. For purposes of this
5190		-	paragraph, "used for commercial purposes" means the
5191		-	transportation of persons or property in furtherance of
5192		-	any commercial or industrial enterprise whether for-hire
5193		-	or not.
5194		-	(13) Proceeds from sales to owners, lessors, or
5195		-	shippers of tangible personal property that is utilized by
5196		-	interstate carriers for hire for use as rolling stock
5197		-	moving in interstate commerce and equipment operated by a
5198		-	telecommunications provider, licensed as a common carrier
5199		-	by the Federal Communications Commission, which is
5200		-	permanently installed in or affixed to aircraft moving in
5201		-	interstate commerce.
5202		-	(14) Machinery and equipment that will be used by the
5203		-	purchaser, or a lessee of the purchaser, primarily in the
5204		-	process of manufacturing or assembling tangible personal
5205		-	property for wholesale or retail sale or lease, whether
5206		-	the sale or lease is made directly by the manufacturer or
5207		-	by some other person, whether the materials used in the
5208		-	process are owned by the manufacturer or some other
5209		-	person, or whether the sale or lease is made apart from or
5210		-
5211		-
5212		-	as an incident to the seller's engaging in the service
5213		-	occupation of producing machines, tools, dies, jigs,
5214		-	patterns, gauges, or other similar items of no commercial
5215		-	value on special order for a particular purchaser. The
5216		-	exemption provided by this paragraph (14) does not include
5217		-	machinery and equipment used in (i) the generation of
5218		-	electricity for wholesale or retail sale; (ii) the
5219		-	generation or treatment of natural or artificial gas for
5220		-	wholesale or retail sale that is delivered to customers
5221		-	through pipes, pipelines, or mains; or (iii) the treatment
5222		-	of water for wholesale or retail sale that is delivered to
5223		-	customers through pipes, pipelines, or mains. The
5224		-	provisions of Public Act 98-583 are declaratory of
5225		-	existing law as to the meaning and scope of this
5226		-	exemption. Beginning on July 1, 2017, the exemption
5227		-	provided by this paragraph (14) includes, but is not
5228		-	limited to, graphic arts machinery and equipment, as
5229		-	defined in paragraph (4) of this Section.
5230		-	(15) Proceeds of mandatory service charges separately
5231		-	stated on customers' bills for purchase and consumption of
5232		-	food and beverages, to the extent that the proceeds of the
5233		-	service charge are in fact turned over as tips or as a
5234		-	substitute for tips to the employees who participate
5235		-	directly in preparing, serving, hosting or cleaning up the
5236		-	food or beverage function with respect to which the
5237		-	service charge is imposed.
5238		-
5239		-
5240		-	(16) Tangible personal property sold to a purchaser if
5241		-	the purchaser is exempt from use tax by operation of
5242		-	federal law. This paragraph is exempt from the provisions
5243		-	of Section 2-70.
5244		-	(17) Tangible personal property sold to a common
5245		-	carrier by rail or motor that receives the physical
5246		-	possession of the property in Illinois and that transports
5247		-	the property, or shares with another common carrier in the
5248		-	transportation of the property, out of Illinois on a
5249		-	standard uniform bill of lading showing the seller of the
5250		-	property as the shipper or consignor of the property to a
5251		-	destination outside Illinois, for use outside Illinois.
5252		-	(18) Legal tender, currency, medallions, or gold or
5253		-	silver coinage issued by the State of Illinois, the
5254		-	government of the United States of America, or the
5255		-	government of any foreign country, and bullion.
5256		-	(19) Until July 1, 2003, oil field exploration,
5257		-	drilling, and production equipment, including (i) rigs and
5258		-	parts of rigs, rotary rigs, cable tool rigs, and workover
5259		-	rigs, (ii) pipe and tubular goods, including casing and
5260		-	drill strings, (iii) pumps and pump-jack units, (iv)
5261		-	storage tanks and flow lines, (v) any individual
5262		-	replacement part for oil field exploration, drilling, and
5263		-	production equipment, and (vi) machinery and equipment
5264		-	purchased for lease; but excluding motor vehicles required
5265		-	to be registered under the Illinois Vehicle Code.
5266		-
5267		-
5268		-	(20) Photoprocessing machinery and equipment,
5269		-	including repair and replacement parts, both new and used,
5270		-	including that manufactured on special order, certified by
5271		-	the purchaser to be used primarily for photoprocessing,
5272		-	and including photoprocessing machinery and equipment
5273		-	purchased for lease.
5274		-	(21) Until July 1, 2028, coal and aggregate
5275		-	exploration, mining, off-highway hauling, processing,
5276		-	maintenance, and reclamation equipment, including
5277		-	replacement parts and equipment, and including equipment
5278		-	purchased for lease, but excluding motor vehicles required
5279		-	to be registered under the Illinois Vehicle Code. The
5280		-	changes made to this Section by Public Act 97-767 apply on
5281		-	and after July 1, 2003, but no claim for credit or refund
5282		-	is allowed on or after August 16, 2013 (the effective date
5283		-	of Public Act 98-456) for such taxes paid during the
5284		-	period beginning July 1, 2003 and ending on August 16,
5285		-	2013 (the effective date of Public Act 98-456).
5286		-	(22) Until June 30, 2013, fuel and petroleum products
5287		-	sold to or used by an air carrier, certified by the carrier
5288		-	to be used for consumption, shipment, or storage in the
5289		-	conduct of its business as an air common carrier, for a
5290		-	flight destined for or returning from a location or
5291		-	locations outside the United States without regard to
5292		-	previous or subsequent domestic stopovers.
5293		-	Beginning July 1, 2013, fuel and petroleum products
5294		-
5295		-
5296		-	sold to or used by an air carrier, certified by the carrier
5297		-	to be used for consumption, shipment, or storage in the
5298		-	conduct of its business as an air common carrier, for a
5299		-	flight that (i) is engaged in foreign trade or is engaged
5300		-	in trade between the United States and any of its
5301		-	possessions and (ii) transports at least one individual or
5302		-	package for hire from the city of origination to the city
5303		-	of final destination on the same aircraft, without regard
5304		-	to a change in the flight number of that aircraft.
5305		-	(23) A transaction in which the purchase order is
5306		-	received by a florist who is located outside Illinois, but
5307		-	who has a florist located in Illinois deliver the property
5308		-	to the purchaser or the purchaser's donee in Illinois.
5309		-	(24) Fuel consumed or used in the operation of ships,
5310		-	barges, or vessels that are used primarily in or for the
5311		-	transportation of property or the conveyance of persons
5312		-	for hire on rivers bordering on this State if the fuel is
5313		-	delivered by the seller to the purchaser's barge, ship, or
5314		-	vessel while it is afloat upon that bordering river.
5315		-	(25) Except as provided in item (25-5) of this
5316		-	Section, a motor vehicle sold in this State to a
5317		-	nonresident even though the motor vehicle is delivered to
5318		-	the nonresident in this State, if the motor vehicle is not
5319		-	to be titled in this State, and if a drive-away permit is
5320		-	issued to the motor vehicle as provided in Section 3-603
5321		-	of the Illinois Vehicle Code or if the nonresident
5322		-
5323		-
5324		-	purchaser has vehicle registration plates to transfer to
5325		-	the motor vehicle upon returning to his or her home state.
5326		-	The issuance of the drive-away permit or having the
5327		-	out-of-state registration plates to be transferred is
5328		-	prima facie evidence that the motor vehicle will not be
5329		-	titled in this State.
5330		-	(25-5) The exemption under item (25) does not apply if
5331		-	the state in which the motor vehicle will be titled does
5332		-	not allow a reciprocal exemption for a motor vehicle sold
5333		-	and delivered in that state to an Illinois resident but
5334		-	titled in Illinois. The tax collected under this Act on
5335		-	the sale of a motor vehicle in this State to a resident of
5336		-	another state that does not allow a reciprocal exemption
5337		-	shall be imposed at a rate equal to the state's rate of tax
5338		-	on taxable property in the state in which the purchaser is
5339		-	a resident, except that the tax shall not exceed the tax
5340		-	that would otherwise be imposed under this Act. At the
5341		-	time of the sale, the purchaser shall execute a statement,
5342		-	signed under penalty of perjury, of his or her intent to
5343		-	title the vehicle in the state in which the purchaser is a
5344		-	resident within 30 days after the sale and of the fact of
5345		-	the payment to the State of Illinois of tax in an amount
5346		-	equivalent to the state's rate of tax on taxable property
5347		-	in his or her state of residence and shall submit the
5348		-	statement to the appropriate tax collection agency in his
5349		-	or her state of residence. In addition, the retailer must
5350		-
5351		-
5352		-	retain a signed copy of the statement in his or her
5353		-	records. Nothing in this item shall be construed to
5354		-	require the removal of the vehicle from this state
5355		-	following the filing of an intent to title the vehicle in
5356		-	the purchaser's state of residence if the purchaser titles
5357		-	the vehicle in his or her state of residence within 30 days
5358		-	after the date of sale. The tax collected under this Act in
5359		-	accordance with this item (25-5) shall be proportionately
5360		-	distributed as if the tax were collected at the 6.25%
5361		-	general rate imposed under this Act.
5362		-	(25-7) Beginning on July 1, 2007, no tax is imposed
5363		-	under this Act on the sale of an aircraft, as defined in
5364		-	Section 3 of the Illinois Aeronautics Act, if all of the
5365		-	following conditions are met:
5366		-	(1) the aircraft leaves this State within 15 days
5367		-	after the later of either the issuance of the final
5368		-	billing for the sale of the aircraft, or the
5369		-	authorized approval for return to service, completion
5370		-	of the maintenance record entry, and completion of the
5371		-	test flight and ground test for inspection, as
5372		-	required by 14 CFR C.F.R. 91.407;
5373		-	(2) the aircraft is not based or registered in
5374		-	this State after the sale of the aircraft; and
5375		-	(3) the seller retains in his or her books and
5376		-	records and provides to the Department a signed and
5377		-	dated certification from the purchaser, on a form
5378		-
5379		-
5380		-	prescribed by the Department, certifying that the
5381		-	requirements of this item (25-7) are met. The
5382		-	certificate must also include the name and address of
5383		-	the purchaser, the address of the location where the
5384		-	aircraft is to be titled or registered, the address of
5385		-	the primary physical location of the aircraft, and
5386		-	other information that the Department may reasonably
5387		-	require.
5388		-	For purposes of this item (25-7):
5389		-	"Based in this State" means hangared, stored, or
5390		-	otherwise used, excluding post-sale customizations as
5391		-	defined in this Section, for 10 or more days in each
5392		-	12-month period immediately following the date of the sale
5393		-	of the aircraft.
5394		-	"Registered in this State" means an aircraft
5395		-	registered with the Department of Transportation,
5396		-	Aeronautics Division, or titled or registered with the
5397		-	Federal Aviation Administration to an address located in
5398		-	this State.
5399		-	This paragraph (25-7) is exempt from the provisions of
5400		-	Section 2-70.
5401		-	(26) Semen used for artificial insemination of
5402		-	livestock for direct agricultural production.
5403		-	(27) Horses, or interests in horses, registered with
5404		-	and meeting the requirements of any of the Arabian Horse
5405		-	Club Registry of America, Appaloosa Horse Club, American
5406		-
5407		-
5408		-	Quarter Horse Association, United States Trotting
5409		-	Association, or Jockey Club, as appropriate, used for
5410		-	purposes of breeding or racing for prizes. This item (27)
5411		-	is exempt from the provisions of Section 2-70, and the
5412		-	exemption provided for under this item (27) applies for
5413		-	all periods beginning May 30, 1995, but no claim for
5414		-	credit or refund is allowed on or after January 1, 2008
5415		-	(the effective date of Public Act 95-88) for such taxes
5416		-	paid during the period beginning May 30, 2000 and ending
5417		-	on January 1, 2008 (the effective date of Public Act
5418		-	95-88).
5419		-	(28) Computers and communications equipment utilized
5420		-	for any hospital purpose and equipment used in the
5421		-	diagnosis, analysis, or treatment of hospital patients
5422		-	sold to a lessor who leases the equipment, under a lease of
5423		-	one year or longer executed or in effect at the time of the
5424		-	purchase, to a hospital that has been issued an active tax
5425		-	exemption identification number by the Department under
5426		-	Section 1g of this Act.
5427		-	(29) Personal property sold to a lessor who leases the
5428		-	property, under a lease of one year or longer executed or
5429		-	in effect at the time of the purchase, to a governmental
5430		-	body that has been issued an active tax exemption
5431		-	identification number by the Department under Section 1g
5432		-	of this Act.
5433		-	(30) Beginning with taxable years ending on or after
5434		-
5435		-
5436		-	December 31, 1995 and ending with taxable years ending on
5437		-	or before December 31, 2004, personal property that is
5438		-	donated for disaster relief to be used in a State or
5439		-	federally declared disaster area in Illinois or bordering
5440		-	Illinois by a manufacturer or retailer that is registered
5441		-	in this State to a corporation, society, association,
5442		-	foundation, or institution that has been issued a sales
5443		-	tax exemption identification number by the Department that
5444		-	assists victims of the disaster who reside within the
5445		-	declared disaster area.
5446		-	(31) Beginning with taxable years ending on or after
5447		-	December 31, 1995 and ending with taxable years ending on
5448		-	or before December 31, 2004, personal property that is
5449		-	used in the performance of infrastructure repairs in this
5450		-	State, including but not limited to municipal roads and
5451		-	streets, access roads, bridges, sidewalks, waste disposal
5452		-	systems, water and sewer line extensions, water
5453		-	distribution and purification facilities, storm water
5454		-	drainage and retention facilities, and sewage treatment
5455		-	facilities, resulting from a State or federally declared
5456		-	disaster in Illinois or bordering Illinois when such
5457		-	repairs are initiated on facilities located in the
5458		-	declared disaster area within 6 months after the disaster.
5459		-	(32) Beginning July 1, 1999, game or game birds sold
5460		-	at a "game breeding and hunting preserve area" as that
5461		-	term is used in the Wildlife Code. This paragraph is
5462		-
5463		-
5464		-	exempt from the provisions of Section 2-70.
5465		-	(33) A motor vehicle, as that term is defined in
5466		-	Section 1-146 of the Illinois Vehicle Code, that is
5467		-	donated to a corporation, limited liability company,
5468		-	society, association, foundation, or institution that is
5469		-	determined by the Department to be organized and operated
5470		-	exclusively for educational purposes. For purposes of this
5471		-	exemption, "a corporation, limited liability company,
5472		-	society, association, foundation, or institution organized
5473		-	and operated exclusively for educational purposes" means
5474		-	all tax-supported public schools, private schools that
5475		-	offer systematic instruction in useful branches of
5476		-	learning by methods common to public schools and that
5477		-	compare favorably in their scope and intensity with the
5478		-	course of study presented in tax-supported schools, and
5479		-	vocational or technical schools or institutes organized
5480		-	and operated exclusively to provide a course of study of
5481		-	not less than 6 weeks duration and designed to prepare
5482		-	individuals to follow a trade or to pursue a manual,
5483		-	technical, mechanical, industrial, business, or commercial
5484		-	occupation.
5485		-	(34) Beginning January 1, 2000, personal property,
5486		-	including food, purchased through fundraising events for
5487		-	the benefit of a public or private elementary or secondary
5488		-	school, a group of those schools, or one or more school
5489		-	districts if the events are sponsored by an entity
5490		-
5491		-
5492		-	recognized by the school district that consists primarily
5493		-	of volunteers and includes parents and teachers of the
5494		-	school children. This paragraph does not apply to
5495		-	fundraising events (i) for the benefit of private home
5496		-	instruction or (ii) for which the fundraising entity
5497		-	purchases the personal property sold at the events from
5498		-	another individual or entity that sold the property for
5499		-	the purpose of resale by the fundraising entity and that
5500		-	profits from the sale to the fundraising entity. This
5501		-	paragraph is exempt from the provisions of Section 2-70.
5502		-	(35) Beginning January 1, 2000 and through December
5503		-	31, 2001, new or used automatic vending machines that
5504		-	prepare and serve hot food and beverages, including
5505		-	coffee, soup, and other items, and replacement parts for
5506		-	these machines. Beginning January 1, 2002 and through June
5507		-	30, 2003, machines and parts for machines used in
5508		-	commercial, coin-operated amusement and vending business
5509		-	if a use or occupation tax is paid on the gross receipts
5510		-	derived from the use of the commercial, coin-operated
5511		-	amusement and vending machines. This paragraph is exempt
5512		-	from the provisions of Section 2-70.
5513		-	(35-5) Beginning August 23, 2001 and through June 30,
5514		-	2016, food for human consumption that is to be consumed
5515		-	off the premises where it is sold (other than alcoholic
5516		-	beverages, soft drinks, and food that has been prepared
5517		-	for immediate consumption) and prescription and
5518		-
5519		-
5520		-	nonprescription medicines, drugs, medical appliances, and
5521		-	insulin, urine testing materials, syringes, and needles
5522		-	used by diabetics, for human use, when purchased for use
5523		-	by a person receiving medical assistance under Article V
5524		-	of the Illinois Public Aid Code who resides in a licensed
5525		-	long-term care facility, as defined in the Nursing Home
5526		-	Care Act, or a licensed facility as defined in the ID/DD
5527		-	Community Care Act, the MC/DD Act, or the Specialized
5528		-	Mental Health Rehabilitation Act of 2013.
5529		-	(36) Beginning August 2, 2001, computers and
5530		-	communications equipment utilized for any hospital purpose
5531		-	and equipment used in the diagnosis, analysis, or
5532		-	treatment of hospital patients sold to a lessor who leases
5533		-	the equipment, under a lease of one year or longer
5534		-	executed or in effect at the time of the purchase, to a
5535		-	hospital that has been issued an active tax exemption
5536		-	identification number by the Department under Section 1g
5537		-	of this Act. This paragraph is exempt from the provisions
5538		-	of Section 2-70.
5539		-	(37) Beginning August 2, 2001, personal property sold
5540		-	to a lessor who leases the property, under a lease of one
5541		-	year or longer executed or in effect at the time of the
5542		-	purchase, to a governmental body that has been issued an
5543		-	active tax exemption identification number by the
5544		-	Department under Section 1g of this Act. This paragraph is
5545		-	exempt from the provisions of Section 2-70.
5546		-
5547		-
5548		-	(38) Beginning on January 1, 2002 and through June 30,
5549		-	2016, tangible personal property purchased from an
5550		-	Illinois retailer by a taxpayer engaged in centralized
5551		-	purchasing activities in Illinois who will, upon receipt
5552		-	of the property in Illinois, temporarily store the
5553		-	property in Illinois (i) for the purpose of subsequently
5554		-	transporting it outside this State for use or consumption
5555		-	thereafter solely outside this State or (ii) for the
5556		-	purpose of being processed, fabricated, or manufactured
5557		-	into, attached to, or incorporated into other tangible
5558		-	personal property to be transported outside this State and
5559		-	thereafter used or consumed solely outside this State. The
5560		-	Director of Revenue shall, pursuant to rules adopted in
5561		-	accordance with the Illinois Administrative Procedure Act,
5562		-	issue a permit to any taxpayer in good standing with the
5563		-	Department who is eligible for the exemption under this
5564		-	paragraph (38). The permit issued under this paragraph
5565		-	(38) shall authorize the holder, to the extent and in the
5566		-	manner specified in the rules adopted under this Act, to
5567		-	purchase tangible personal property from a retailer exempt
5568		-	from the taxes imposed by this Act. Taxpayers shall
5569		-	maintain all necessary books and records to substantiate
5570		-	the use and consumption of all such tangible personal
5571		-	property outside of the State of Illinois.
5572		-	(39) Beginning January 1, 2008, tangible personal
5573		-	property used in the construction or maintenance of a
5574		-
5575		-
5576		-	community water supply, as defined under Section 3.145 of
5577		-	the Environmental Protection Act, that is operated by a
5578		-	not-for-profit corporation that holds a valid water supply
5579		-	permit issued under Title IV of the Environmental
5580		-	Protection Act. This paragraph is exempt from the
5581		-	provisions of Section 2-70.
5582		-	(40) Beginning January 1, 2010 and continuing through
5583		-	December 31, 2024, materials, parts, equipment,
5584		-	components, and furnishings incorporated into or upon an
5585		-	aircraft as part of the modification, refurbishment,
5586		-	completion, replacement, repair, or maintenance of the
5587		-	aircraft. This exemption includes consumable supplies used
5588		-	in the modification, refurbishment, completion,
5589		-	replacement, repair, and maintenance of aircraft, but
5590		-	excludes any materials, parts, equipment, components, and
5591		-	consumable supplies used in the modification, replacement,
5592		-	repair, and maintenance of aircraft engines or power
5593		-	plants, whether such engines or power plants are installed
5594		-	or uninstalled upon any such aircraft. "Consumable
5595		-	supplies" include, but are not limited to, adhesive, tape,
5596		-	sandpaper, general purpose lubricants, cleaning solution,
5597		-	latex gloves, and protective films. This exemption applies
5598		-	only to the sale of qualifying tangible personal property
5599		-	to persons who modify, refurbish, complete, replace, or
5600		-	maintain an aircraft and who (i) hold an Air Agency
5601		-	Certificate and are empowered to operate an approved
5602		-
5603		-
5604		-	repair station by the Federal Aviation Administration,
5605		-	(ii) have a Class IV Rating, and (iii) conduct operations
5606		-	in accordance with Part 145 of the Federal Aviation
5607		-	Regulations. The exemption does not include aircraft
5608		-	operated by a commercial air carrier providing scheduled
5609		-	passenger air service pursuant to authority issued under
5610		-	Part 121 or Part 129 of the Federal Aviation Regulations.
5611		-	The changes made to this paragraph (40) by Public Act
5612		-	98-534 are declarative of existing law. It is the intent
5613		-	of the General Assembly that the exemption under this
5614		-	paragraph (40) applies continuously from January 1, 2010
5615		-	through December 31, 2024; however, no claim for credit or
5616		-	refund is allowed for taxes paid as a result of the
5617		-	disallowance of this exemption on or after January 1, 2015
5618		-	and prior to February 5, 2020 (the effective date of
5619		-	Public Act 101-629) this amendatory Act of the 101st
5620		-	General Assembly.
5621		-	(41) Tangible personal property sold to a
5622		-	public-facilities corporation, as described in Section
5623		-	11-65-10 of the Illinois Municipal Code, for purposes of
5624		-	constructing or furnishing a municipal convention hall,
5625		-	but only if the legal title to the municipal convention
5626		-	hall is transferred to the municipality without any
5627		-	further consideration by or on behalf of the municipality
5628		-	at the time of the completion of the municipal convention
5629		-	hall or upon the retirement or redemption of any bonds or
5630		-
5631		-
5632		-	other debt instruments issued by the public-facilities
5633		-	corporation in connection with the development of the
5634		-	municipal convention hall. This exemption includes
5635		-	existing public-facilities corporations as provided in
5636		-	Section 11-65-25 of the Illinois Municipal Code. This
5637		-	paragraph is exempt from the provisions of Section 2-70.
5638		-	(42) Beginning January 1, 2017 and through December
5639		-	31, 2026, menstrual pads, tampons, and menstrual cups.
5640		-	(43) Merchandise that is subject to the Rental
5641		-	Purchase Agreement Occupation and Use Tax. The purchaser
5642		-	must certify that the item is purchased to be rented
5643		-	subject to a rental purchase agreement, as defined in the
5644		-	Rental Purchase Agreement Act, and provide proof of
5645		-	registration under the Rental Purchase Agreement
5646		-	Occupation and Use Tax Act. This paragraph is exempt from
5647		-	the provisions of Section 2-70.
5648		-	(44) Qualified tangible personal property used in the
5649		-	construction or operation of a data center that has been
5650		-	granted a certificate of exemption by the Department of
5651		-	Commerce and Economic Opportunity, whether that tangible
5652		-	personal property is purchased by the owner, operator, or
5653		-	tenant of the data center or by a contractor or
5654		-	subcontractor of the owner, operator, or tenant. Data
5655		-	centers that would have qualified for a certificate of
5656		-	exemption prior to January 1, 2020 had Public Act 101-31
5657		-	this amendatory Act of the 101st General Assembly been in
5658		-
5659		-
5660		-	effect, may apply for and obtain an exemption for
5661		-	subsequent purchases of computer equipment or enabling
5662		-	software purchased or leased to upgrade, supplement, or
5663		-	replace computer equipment or enabling software purchased
5664		-	or leased in the original investment that would have
5665		-	qualified.
5666		-	The Department of Commerce and Economic Opportunity
5667		-	shall grant a certificate of exemption under this item
5668		-	(44) to qualified data centers as defined by Section
5669		-	605-1025 of the Department of Commerce and Economic
5670		-	Opportunity Law of the Civil Administrative Code of
5671		-	Illinois.
5672		-	For the purposes of this item (44):
5673		-	"Data center" means a building or a series of
5674		-	buildings rehabilitated or constructed to house
5675		-	working servers in one physical location or multiple
5676		-	sites within the State of Illinois.
5677		-	"Qualified tangible personal property" means:
5678		-	electrical systems and equipment; climate control and
5679		-	chilling equipment and systems; mechanical systems and
5680		-	equipment; monitoring and secure systems; emergency
5681		-	generators; hardware; computers; servers; data storage
5682		-	devices; network connectivity equipment; racks;
5683		-	cabinets; telecommunications cabling infrastructure;
5684		-	raised floor systems; peripheral components or
5685		-	systems; software; mechanical, electrical, or plumbing
5686		-
5687		-
5688		-	systems; battery systems; cooling systems and towers;
5689		-	temperature control systems; other cabling; and other
5690		-	data center infrastructure equipment and systems
5691		-	necessary to operate qualified tangible personal
5692		-	property, including fixtures; and component parts of
5693		-	any of the foregoing, including installation,
5694		-	maintenance, repair, refurbishment, and replacement of
5695		-	qualified tangible personal property to generate,
5696		-	transform, transmit, distribute, or manage electricity
5697		-	necessary to operate qualified tangible personal
5698		-	property; and all other tangible personal property
5699		-	that is essential to the operations of a computer data
5700		-	center. The term "qualified tangible personal
5701		-	property" also includes building materials physically
5702		-	incorporated into the qualifying data center. To
5703		-	document the exemption allowed under this Section, the
5704		-	retailer must obtain from the purchaser a copy of the
5705		-	certificate of eligibility issued by the Department of
5706		-	Commerce and Economic Opportunity.
5707		-	This item (44) is exempt from the provisions of
5708		-	Section 2-70.
5709		-	(45) Beginning January 1, 2020 and through December
5710		-	31, 2020, sales of tangible personal property made by a
5711		-	marketplace seller over a marketplace for which tax is due
5712		-	under this Act but for which use tax has been collected and
5713		-	remitted to the Department by a marketplace facilitator
5714		-
5715		-
5716		-	under Section 2d of the Use Tax Act are exempt from tax
5717		-	under this Act. A marketplace seller claiming this
5718		-	exemption shall maintain books and records demonstrating
5719		-	that the use tax on such sales has been collected and
5720		-	remitted by a marketplace facilitator. Marketplace sellers
5721		-	that have properly remitted tax under this Act on such
5722		-	sales may file a claim for credit as provided in Section 6
5723		-	of this Act. No claim is allowed, however, for such taxes
5724		-	for which a credit or refund has been issued to the
5725		-	marketplace facilitator under the Use Tax Act, or for
5726		-	which the marketplace facilitator has filed a claim for
5727		-	credit or refund under the Use Tax Act.
5728		-	(46) Beginning July 1, 2022, breast pumps, breast pump
5729		-	collection and storage supplies, and breast pump kits.
5730		-	This item (46) is exempt from the provisions of Section
5731		-	2-70. As used in this item (46):
5732		-	"Breast pump" means an electrically controlled or
5733		-	manually controlled pump device designed or marketed to be
5734		-	used to express milk from a human breast during lactation,
5735		-	including the pump device and any battery, AC adapter, or
5736		-	other power supply unit that is used to power the pump
5737		-	device and is packaged and sold with the pump device at the
5738		-	time of sale.
5739		-	"Breast pump collection and storage supplies" means
5740		-	items of tangible personal property designed or marketed
5741		-	to be used in conjunction with a breast pump to collect
5742		-
5743		-
5744		-	milk expressed from a human breast and to store collected
5745		-	milk until it is ready for consumption.
5746		-	"Breast pump collection and storage supplies"
5747		-	includes, but is not limited to: breast shields and breast
5748		-	shield connectors; breast pump tubes and tubing adapters;
5749		-	breast pump valves and membranes; backflow protectors and
5750		-	backflow protector adaptors; bottles and bottle caps
5751		-	specific to the operation of the breast pump; and breast
5752		-	milk storage bags.
5753		-	"Breast pump collection and storage supplies" does not
5754		-	include: (1) bottles and bottle caps not specific to the
5755		-	operation of the breast pump; (2) breast pump travel bags
5756		-	and other similar carrying accessories, including ice
5757		-	packs, labels, and other similar products; (3) breast pump
5758		-	cleaning supplies; (4) nursing bras, bra pads, breast
5759		-	shells, and other similar products; and (5) creams,
5760		-	ointments, and other similar products that relieve
5761		-	breastfeeding-related symptoms or conditions of the
5762		-	breasts or nipples, unless sold as part of a breast pump
5763		-	kit that is pre-packaged by the breast pump manufacturer
5764		-	or distributor.
5765		-	"Breast pump kit" means a kit that: (1) contains no
5766		-	more than a breast pump, breast pump collection and
5767		-	storage supplies, a rechargeable battery for operating the
5768		-	breast pump, a breastmilk cooler, bottle stands, ice
5769		-	packs, and a breast pump carrying case; and (2) is
5770		-
5771		-
5772		-	pre-packaged as a breast pump kit by the breast pump
5773		-	manufacturer or distributor.
5774		-	(47) (46) Tangible personal property sold by or on
5775		-	behalf of the State Treasurer pursuant to the Revised
5776		-	Uniform Unclaimed Property Act. This item (47) (46) is
5777		-	exempt from the provisions of Section 2-70.
5778		-	(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
5779		-	101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
5780		-	8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
5781		-	102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
5782		-	eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
5783		-	ARTICLE 20. PARKING EXCISE TAX
5784		-	Section 20-5. The Parking Excise Tax Act is amended by
5785		-	changing Sections 10-5, 10-10, 10-15, 10-25, 10-30, 10-35,
5786		-	10-45, and 10-50 as follows:
5787		-	(35 ILCS 525/10-5)
5788		-	(Text of Section before amendment by P.A. 102-700)
5789		-	Sec. 10-5. Definitions.
5790		-	"Booking intermediary" means any person or entity that
5791		-	facilitates the processing and fulfillment of reservation
5792		-	transactions between an operator and a person or entity
5793		-	desiring parking in a parking lot or garage of that operator.
5794		-	"Charge or fee paid for parking" means the gross amount of
5795		-
5796		-
5797		-	consideration for the use or privilege of parking a motor
5798		-	vehicle in or upon any parking lot or garage in the State,
5799		-	collected by an operator and valued in money, whether received
5800		-	in money or otherwise, including cash, credits, property, and
5801		-	services, determined without any deduction for costs or
5802		-	expenses, but not including charges that are added to the
5803		-	charge or fee on account of the tax imposed by this Act or on
5804		-	account of any other tax imposed on the charge or fee. "Charge
5805		-	or fee paid for parking" excludes separately stated charges
5806		-	not for the use or privilege or parking and excludes amounts
5807		-	retained by or paid to a booking intermediary for services
5808		-	provided by the booking intermediary. If any separately stated
5809		-	charge is not optional, it shall be presumed that it is part of
5810		-	the charge for the use or privilege or parking.
5811		-	"Department" means the Department of Revenue.
5812		-	"Operator" means any person who engages in the business of
5813		-	operating a parking area or garage, or who, directly or
5814		-	through an agreement or arrangement with another party,
5815		-	collects the consideration for parking or storage of motor
5816		-	vehicles, recreational vehicles, or other self-propelled
5817		-	vehicles, at that parking place. This includes, but is not
5818		-	limited to, any facilitator or aggregator that collects from
5819		-	the purchaser the charge or fee paid for parking. "Operator"
5820		-	does not include a bank, credit card company, payment
5821		-	processor, booking intermediary, or person whose involvement
5822		-	is limited to performing functions that are similar to those
5823		-
5824		-
5825		-	performed by a bank, credit card company, payment processor,
5826		-	or booking intermediary.
5827		-	"Parking area or garage" means any real estate, building,
5828		-	structure, premises, enclosure or other place, whether
5829		-	enclosed or not, except a public way, within the State, where
5830		-	motor vehicles, recreational vehicles, or other self-propelled
5831		-	vehicles, are stored, housed or parked for hire, charge, fee
5832		-	or other valuable consideration in a condition ready for use,
5833		-	or where rent or compensation is paid to the owner, manager,
5834		-	operator or lessee of the premises for the housing, storing,
5835		-	sheltering, keeping or maintaining motor vehicles,
5836		-	recreational vehicles, or other self-propelled vehicles.
5837		-	"Parking area or garage" includes any parking area or garage,
5838		-	whether the vehicle is parked by the owner of the vehicle or by
5839		-	the operator or an attendant.
5840		-	"Person" means any natural individual, firm, trust,
5841		-	estate, partnership, association, joint stock company, joint
5842		-	venture, corporation, limited liability company, or a
5843		-	receiver, trustee, guardian, or other representative appointed
5844		-	by order of any court.
5845		-	"Purchase price" means the consideration paid for the
5846		-	purchase of a parking space in a parking area or garage, valued
5847		-	in money, whether received in money or otherwise, including
5848		-	cash, gift cards, credits, and property, and shall be
5849		-	determined without any deduction on account of the cost of
5850		-	materials used, labor or service costs, or any other expense
5851		-
5852		-
5853		-	whatsoever.
5854		-	"Purchase price" includes any and all charges that the
5855		-	recipient pays related to or incidental to obtaining the use
5856		-	or privilege of using a parking space in a parking area or
5857		-	garage, including but not limited to any and all related
5858		-	markups, service fees, convenience fees, facilitation fees,
5859		-	cancellation fees, overtime fees, or other such charges,
5860		-	regardless of terminology. However, "purchase price" shall not
5861		-	include consideration paid for:
5862		-	(1) optional, separately stated charges not for the
5863		-	use or privilege of using a parking space in the parking
5864		-	area or garage;
5865		-	(2) any charge for a dishonored check;
5866		-	(3) any finance or credit charge, penalty or charge
5867		-	for delayed payment, or discount for prompt payment;
5868		-	(4) any purchase by a purchaser if the operator is
5869		-	prohibited by federal or State Constitution, treaty,
5870		-	convention, statute or court decision from collecting the
5871		-	tax from such purchaser;
5872		-	(5) the isolated or occasional sale of parking spaces
5873		-	subject to tax under this Act by a person who does not hold
5874		-	himself out as being engaged (or who does not habitually
5875		-	engage) in selling of parking spaces; and
5876		-	(6) any amounts added to a purchaser's bills because
5877		-	of charges made pursuant to the tax imposed by this Act. If
5878		-	credit is extended, then the amount thereof shall be
5879		-
5880		-
5881		-	included only as and when payments are made.
5882		-	"Purchaser" means any person who acquires a parking space
5883		-	in a parking area or garage for use for valuable
5884		-	consideration.
5885		-	"Use" means the exercise by any person of any right or
5886		-	power over, or the enjoyment of, a parking space in a parking
5887		-	area or garage subject to tax under this Act.
5888		-	(Source: P.A. 101-31, eff. 6-28-19.)
5889		-	(Text of Section after amendment by P.A. 102-700)
5890		-	Sec. 10-5. Definitions. As used in this Act:
5891		-	"Booking intermediary" means any person or entity that
5892		-	facilitates the processing and fulfillment of reservation
5893		-	transactions between an operator and a person or entity
5894		-	desiring parking in a parking lot or garage of that operator.
5895		-	"Department" means the Department of Revenue.
5896		-	"Operator" means any person who engages in the business of
5897		-	operating a parking area or garage, or who, directly or
5898		-	through an agreement or arrangement with another party,
5899		-	collects the consideration for parking or storage of motor
5900		-	vehicles, recreational vehicles, or other self-propelled
5901		-	vehicles, at that parking place. This includes, but is not
5902		-	limited to, any facilitator or aggregator that collects the
5903		-	purchase price from the purchaser. "Operator" does not include
5904		-	a bank, credit card company, payment processor, booking
5905		-	intermediary (except to the extent a booking intermediary is
5906		-
5907		-
5908		-	required to be registered under Section 10-30 or as otherwise
5909		-	provided in this Act), or person whose involvement is limited
5910		-	to performing functions that are similar to those performed by
5911		-	a bank, credit card company, or payment processor, or booking
5912		-	intermediary.
5913		-	"Parking area or garage" means any real estate, building,
5914		-	structure, premises, enclosure or other place, whether
5915		-	enclosed or not, except a public way, within the State, where
5916		-	motor vehicles, recreational vehicles, or other self-propelled
5917		-	vehicles, are stored, housed or parked for hire, charge, fee
5918		-	or other valuable consideration in a condition ready for use,
5919		-	or where rent or compensation is paid to the owner, manager,
5920		-	operator or lessee of the premises for the housing, storing,
5921		-	sheltering, keeping or maintaining motor vehicles,
5922		-	recreational vehicles, or other self-propelled vehicles.
5923		-	"Parking area or garage" includes any parking area or garage,
5924		-	whether the vehicle is parked by the owner of the vehicle or by
5925		-	the operator or an attendant.
5926		-	"Person" means any natural individual, firm, trust,
5927		-	estate, partnership, association, joint stock company, joint
5928		-	venture, corporation, limited liability company, or a
5929		-	receiver, trustee, guardian, or other representative appointed
5930		-	by order of any court.
5931		-	"Purchase price" means the consideration paid for the
5932		-	purchase of a parking space in a parking area or garage, valued
5933		-	in money, whether received in money or otherwise, including
5934		-
5935		-
5936		-	cash, gift cards, credits, and property, and shall be
5937		-	determined without any deduction on account of the cost of
5938		-	materials used, labor or service costs, or any other expense
5939		-	whatsoever.
5940		-	"Purchase price" includes any and all charges that the
5941		-	recipient pays related to or incidental to obtaining the use
5942		-	or privilege of using a parking space in a parking area or
5943		-	garage, including but not limited to any and all related
5944		-	markups, service fees, convenience fees, facilitation fees,
5945		-	cancellation fees, overtime fees, or other such charges,
5946		-	regardless of terminology. However, "purchase price" shall not
5947		-	include consideration paid for:
5948		-	(1) optional, separately stated charges not for the
5949		-	use or privilege of using a parking space in the parking
5950		-	area or garage;
5951		-	(2) any charge for a dishonored check;
5952		-	(3) any finance or credit charge, penalty or charge
5953		-	for delayed payment, or discount for prompt payment;
5954		-	(4) any purchase by a purchaser if the operator is
5955		-	prohibited by federal or State Constitution, treaty,
5956		-	convention, statute or court decision from collecting the
5957		-	tax from such purchaser;
5958		-	(5) the isolated or occasional sale of parking spaces
5959		-	subject to tax under this Act by a person who does not hold
5960		-	himself out as being engaged (or who does not habitually
5961		-	engage) in selling of parking spaces; and
5962		-
5963		-
5964		-	(6) any amounts added to a purchaser's bills because
5965		-	of charges made pursuant to the tax imposed by this Act. If
5966		-	credit is extended, then the amount thereof shall be
5967		-	included only as and when payments are made.
5968		-	"Purchaser" means any person who acquires a parking space
5969		-	in a parking area or garage for use for valuable
5970		-	consideration.
5971		-	"Use" means the exercise by any person of any right or
5972		-	power over, or the enjoyment of, a parking space in a parking
5973		-	area or garage subject to tax under this Act.
5974		-	(Source: P.A. 101-31, eff. 6-28-19; 102-700, eff. 7-1-23.)
5975		-	(35 ILCS 525/10-10)
5976		-	Sec. 10-10. Imposition of tax; calculation of tax.
5977		-	(a) Beginning on January 1, 2020, a tax is imposed on the
5978		-	privilege of using in this State a parking space in a parking
5979		-	area or garage for the use of parking one or more motor
5980		-	vehicles, recreational vehicles, or other self-propelled
5981		-	vehicles, at the rate of:
5982		-	(1) 6% of the purchase price for a parking space paid
5983		-	for on an hourly, daily, or weekly basis; and
5984		-	(2) 9% of the purchase price for a parking space paid
5985		-	for on a monthly or annual basis.
5986		-	(b) The tax shall be collected from the purchaser by the
5987		-	operator. Notwithstanding the provisions of this subsection,
5988		-	beginning on January 1, 2024, if a booking intermediary
5989		-
5990		-
5991		-	facilitates the processing and fulfillment of the reservation
5992		-	for an operator that is not registered under Section 10-30,
5993		-	then the tax shall be collected on the purchase price from the
5994		-	purchaser by the booking intermediary on behalf of the
5995		-	operator, and the tax shall be remitted to the Department by
5996		-	the booking intermediary. The booking intermediary that
5997		-	facilitates the processing and fulfillment of the reservation
5998		-	for an operator that is not registered under Section 10-30 and
5999		-	the unregistered operator are jointly and severally liable for
6000		-	payment of the tax to the Department.
6001		-	(b-5) Booking intermediaries shall collect the tax on the
6002		-	purchase price paid by purchasers on behalf of registered
6003		-	operators. If a booking intermediary charges a separate
6004		-	service charge that is included in the purchase price, the tax
6005		-	shall be collected on that separate service charge as well,
6006		-	even if the separate service charge is retained by the booking
6007		-	intermediary. Beginning January 1, 2024, booking
6008		-	intermediaries are liable for and shall remit the tax to the
6009		-	Department on any separately stated service fee that the
6010		-	booking intermediary charges to the customer. Operators are
6011		-	liable for the remittance of tax under this Act on the
6012		-	remainder of the purchase price for the transaction. Booking
6013		-	intermediaries and operators are subject to audit on all such
6014		-	sales.
6015		-	(c) An operator that has paid or remitted the tax imposed
6016		-	by this Act to another operator in connection with the same
6017		-
6018		-
6019		-	parking transaction, or the use of the same parking space,
6020		-	that is subject to tax under this Act, shall be entitled to a
6021		-	credit for such tax paid or remitted against the amount of tax
6022		-	owed under this Act, provided that the other operator is
6023		-	registered under this Act. The operator claiming the credit
6024		-	shall have the burden of proving it is entitled to claim a
6025		-	credit.
6026		-	(d) If any operator or booking intermediary erroneously
6027		-	collects tax or collects more from the purchaser than the
6028		-	purchaser's liability for the transaction, the purchaser shall
6029		-	have a legal right to claim a refund of such amount from the
6030		-	operator or booking intermediary. However, if such amount is
6031		-	not refunded to the purchaser for any reason, the operator or
6032		-	booking intermediary is liable to pay such amount to the
6033		-	Department.
6034		-	(e) The tax imposed by this Section is not imposed with
6035		-	respect to any transaction in interstate commerce, to the
6036		-	extent that the transaction may not, under the Constitution
6037		-	and statutes of the United States, be made the subject of
6038		-	taxation by this State.
6039		-	(Source: P.A. 101-31, eff. 6-28-19.)
6040		-	(35 ILCS 525/10-15)
6041		-	Sec. 10-15. Filing of returns and deposit of proceeds. On
6042		-	or before the last day of each calendar month, every operator
6043		-	engaged in the business of providing to purchasers parking
6044		-
6045		-
6046		-	areas and garages in this State during the preceding calendar
6047		-	month and every booking intermediary required to collect tax
6048		-	under Section 10-10 shall file a return with the Department,
6049		-	stating:
6050		-	(1) the name of the operator or booking intermediary;
6051		-	(2) the address of its principal place of business
6052		-	and, if applicable, the address of the principal place of
6053		-	business from which it provides parking areas and garages
6054		-	in this State;
6055		-	(3) the total amount of receipts received by the
6056		-	operator during the preceding calendar month or quarter,
6057		-	as the case may be, from sales of parking spaces to
6058		-	purchasers in parking areas or garages during the
6059		-	preceding calendar month or quarter; the total amount of
6060		-	receipts for separately stated service fees that are
6061		-	charged to the customer by the booking intermediary in
6062		-	connection with the booking intermediary's facilitation of
6063		-	parking spot reservations for an operator during the
6064		-	preceding calendar month or quarter, as the case may be;
6065		-	and, if the return is filed by a booking intermediary that
6066		-	collects the tax under this Act on behalf of an
6067		-	unregistered operator, as provided in Section 10-10, then
6068		-	the total amount of receipts received by the booking
6069		-	intermediary on behalf of the unregistered operator during
6070		-	the preceding calendar month or quarter, as the case may
6071		-	be, from sales of parking spaces to purchasers in parking
6072		-
6073		-
6074		-	areas or garages during the preceding calendar month or
6075		-	quarter;
6076		-	(4) deductions allowed by law;
6077		-	(5) the total amount of receipts received by the
6078		-	operator during the preceding calendar month or quarter
6079		-	upon which the tax was computed; the total amount of
6080		-	receipts for separately stated service fees that are
6081		-	charged to the customer by a booking intermediary in
6082		-	connection with the booking intermediary's facilitation of
6083		-	parking spot reservations for an operator during the
6084		-	preceding calendar month or quarter upon which the tax was
6085		-	computed; and, if the return is filed by a booking
6086		-	intermediary that collects the tax under this Act on
6087		-	behalf of an unregistered operator, as provided in Section
6088		-	10-10, then the total amount of receipts received by the
6089		-	booking intermediary on behalf of the unregistered
6090		-	operator during the preceding calendar month or quarter
6091		-	upon which the tax was computed;
6092		-	(6) the amount of tax due; and
6093		-	(7) such other reasonable information as the
6094		-	Department may require.
6095		-	If an operator or booking intermediary ceases to engage in
6096		-	the kind of business that makes it responsible for filing
6097		-	returns under this Act, then that operator or booking
6098		-	intermediary shall file a final return under this Act with the
6099		-	Department on or before the last day of the month after
6100		-
6101		-
6102		-	discontinuing such business.
6103		-	All returns required to be filed and payments required to
6104		-	be made under this Act shall be by electronic means. Taxpayers
6105		-	who demonstrate hardship in filing or paying electronically
6106		-	may petition the Department to waive the electronic filing or
6107		-	payment requirement, or both. The Department may require a
6108		-	separate return for the tax under this Act or combine the
6109		-	return for the tax under this Act with the return for other
6110		-	taxes. In addition to the requirement to file all returns
6111		-	required to be filed and payments required to be made under
6112		-	this Act by electronic means, booking intermediaries shall
6113		-	file returns in the form and manner required by the
6114		-	Department.
6115		-	If the same person has more than one business registered
6116		-	with the Department under separate registrations under this
6117		-	Act, that person shall not file each return that is due as a
6118		-	single return covering all such registered businesses but
6119		-	shall file separate returns for each such registered business.
6120		-	If the operator or booking intermediary is a corporation,
6121		-	the return filed on behalf of that corporation shall be signed
6122		-	by the president, vice-president, secretary, or treasurer, or
6123		-	by a properly accredited agent of such corporation.
6124		-	The operator or booking intermediary filing the return
6125		-	under this Act shall, at the time of filing the return, pay to
6126		-	the Department the amount of tax imposed by this Act less a
6127		-	discount of 1.75%, not to exceed $1,000 per month, which is
6128		-
6129		-
6130		-	allowed to reimburse the operator or booking intermediary for
6131		-	the expenses incurred in keeping records, preparing and filing
6132		-	returns, remitting the tax, and supplying data to the
6133		-	Department on request.
6134		-	If any payment provided for in this Section exceeds the
6135		-	taxpayer's liabilities under this Act, as shown on an original
6136		-	return, the Department may authorize the taxpayer to credit
6137		-	such excess payment against liability subsequently to be
6138		-	remitted to the Department under this Act, in accordance with
6139		-	reasonable rules adopted by the Department. If the Department
6140		-	subsequently determines that all or any part of the credit
6141		-	taken was not actually due to the taxpayer, the taxpayer's
6142		-	discount shall be reduced by an amount equal to the difference
6143		-	between the discount as applied to the credit taken and that
6144		-	actually due, and that taxpayer shall be liable for penalties
6145		-	and interest on such difference.
6146		-	(Source: P.A. 101-31, eff. 6-28-19.)
6147		-	(35 ILCS 525/10-25)
6148		-	Sec. 10-25. Collection of tax.
6149		-	(a) Beginning with bills issued or charges collected for a
6150		-	purchase of a parking space in a parking area or garage on and
6151		-	after January 1, 2020, the tax imposed by this Act shall be
6152		-	collected from the purchaser by the operator, or, beginning
6153		-	January 1, 2024 by a booking intermediary as provided in
6154		-	Section 10-10, at the rate stated in Section 10-10 and shall be
6155		-
6156		-
6157		-	remitted to the Department as provided in this Act. All
6158		-	charges for parking spaces in a parking area or garage are
6159		-	presumed subject to tax collection. Operators and booking
6160		-	intermediaries, as applicable, shall collect the tax from
6161		-	purchasers by adding the tax to the amount of the purchase
6162		-	price received from the purchaser. The tax imposed by the Act
6163		-	shall when collected be stated as a distinct item separate and
6164		-	apart from the purchase price of the service subject to tax
6165		-	under this Act. However, where it is not possible to state the
6166		-	tax separately the Department may by rule exempt such
6167		-	purchases from this requirement so long as purchasers are
6168		-	notified by language on the invoice or notified by a sign that
6169		-	the tax is included in the purchase price.
6170		-	(b) Any person purchasing a parking space in a parking
6171		-	area or garage subject to tax under this Act as to which there
6172		-	has been no charge made to him of the tax imposed by Section
6173		-	10-10, shall make payment of the tax imposed by Section 10-10
6174		-	of this Act in the form and manner provided by the Department,
6175		-	such payment to be made to the Department in the manner and
6176		-	form required by the Department not later than the 20th day of
6177		-	the month following the month of purchase of the parking
6178		-	space.
6179		-	(Source: P.A. 101-31, eff. 6-28-19.)
6180		-	(35 ILCS 525/10-30)
6181		-	Sec. 10-30. Registration of operators and booking
6182		-
6183		-
6184		-	intermediaries.
6185		-	(a) A person who engages in business as an operator of a
6186		-	parking area or garage in this State, or, beginning January 1,
6187		-	2024, a booking intermediary that directly charges to a
6188		-	customer a separately stated service fee pursuant to
6189		-	subsection (b-5) of Section 10-10, or, beginning January 1,
6190		-	2024, a booking intermediary that facilitates the processing
6191		-	and fulfillment of a reservation for an operator that is not
6192		-	registered under Section 10-10, shall register with the
6193		-	Department. Application for a certificate of registration
6194		-	shall be made to the Department, by electronic means, in the
6195		-	form and manner prescribed by the Department and shall contain
6196		-	any reasonable information the Department may require. Upon
6197		-	receipt of the application for a certificate of registration
6198		-	in proper form and manner, the Department shall issue to the
6199		-	applicant a certificate of registration. Operators who
6200		-	demonstrate that they do not have access to the Internet or
6201		-	demonstrate hardship in applying electronically may petition
6202		-	the Department to waive the electronic application
6203		-	requirements.
6204		-	(b) The Department may refuse to issue or reissue a
6205		-	certificate of registration to any applicant for the reasons
6206		-	set forth in Section 2505-380 of the Department of Revenue Law
6207		-	of the Civil Administrative Code of Illinois.
6208		-	(c) Any person aggrieved by any decision of the Department
6209		-	under this Section may, within 20 days after notice of such
6210		-
6211		-
6212		-	decision, protest and request a hearing, whereupon the
6213		-	Department shall give notice to such person of the time and
6214		-	place fixed for such hearing and shall hold a hearing in
6215		-	conformity with the provisions of this Act and then issue its
6216		-	final administrative decision in the matter to such person. In
6217		-	the absence of such a protest within 20 days, the Department's
6218		-	decision shall become final without any further determination
6219		-	being made or notice given.
6220		-	(Source: P.A. 101-31, eff. 6-28-19.)
6221		-	(35 ILCS 525/10-35)
6222		-	Sec. 10-35. Revocation of certificate of registration.
6223		-	(a) The Department may, after notice and a hearing as
6224		-	provided in this Act, revoke the certificate of registration
6225		-	of any operator or booking intermediary who violates any of
6226		-	the provisions of this Act or any rule adopted pursuant to this
6227		-	Act. Before revocation of a certificate of registration, the
6228		-	Department shall, within 90 days after non-compliance and at
6229		-	least 7 days prior to the date of the hearing, give the
6230		-	operator or booking intermediary so accused notice in writing
6231		-	of the charge against him or her, and on the date designated
6232		-	shall conduct a hearing upon this matter. The lapse of such
6233		-	90-day period shall not preclude the Department from
6234		-	conducting revocation proceedings at a later date if
6235		-	necessary. Any hearing held under this Section shall be
6236		-	conducted by the Director or by any officer or employee of the
6237		-
6238		-
6239		-	Department designated in writing by the Director.
6240		-	(b) The Department may revoke a certificate of
6241		-	registration for the reasons set forth in Section 2505-380 of
6242		-	the Department of Revenue Law of the Civil Administrative Code
6243		-	of Illinois.
6244		-	(c) Upon the hearing of any such proceeding, the Director
6245		-	or any officer or employee of the Department designated in
6246		-	writing by the Director may administer oaths, and the
6247		-	Department may procure by its subpoena the attendance of
6248		-	witnesses and, by its subpoena duces tecum, the production of
6249		-	relevant books and papers. Any circuit court, upon application
6250		-	either of the operator or of the Department, may, by order duly
6251		-	entered, require the attendance of witnesses and the
6252		-	production of relevant books and papers before the Department
6253		-	in any hearing relating to the revocation of certificates of
6254		-	registration. Upon refusal or neglect to obey the order of the
6255		-	court, the court may compel obedience thereof by proceedings
6256		-	for contempt.
6257		-	(d) The Department may, by application to any circuit
6258		-	court, obtain an injunction requiring any person who engages
6259		-	in business as an operator or booking intermediary under this
6260		-	Act to obtain a certificate of registration. Upon refusal or
6261		-	neglect to obey the order of the court, the court may compel
6262		-	obedience by proceedings for contempt.
6263		-	(Source: P.A. 101-31, eff. 6-28-19.)
6264		-
6265		-
6266		-	(35 ILCS 525/10-45)
6267		-	Sec. 10-45. Tax collected as debt owed to State. The tax
6268		-	herein required to be collected by any operator, booking
6269		-	intermediary, or valet business and any such tax collected by
6270		-	that person, shall constitute a debt owed by that person to
6271		-	this State.
6272		-	(Source: P.A. 101-31, eff. 6-28-19.)
6273		-	(35 ILCS 525/10-50)
6274		-	Sec. 10-50. Incorporation by reference. All of the
6275		-	provisions of Sections 1, 2a, 2b, 3 (except provisions
6276		-	relating to transaction returns and except for provisions that
6277		-	are inconsistent with this Act), in respect to all provisions
6278		-	therein other than the State rate of tax) 4, 5, 5a, 5b, 5c, 5d,
6279		-	5e, 5f, 5g, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12,
6280		-	and 13 of the Retailers' Occupation Tax Act that are not
6281		-	inconsistent with this Act, and all provisions of the Uniform
6282		-	Penalty and Interest Act shall apply, as far as practicable,
6283		-	to the subject matter of this Act to the same extent as if such
6284		-	provisions were included in this Act. The enumerated
6285		-	provisions of the Retailers' Occupation Tax Act in this
6286		-	Section and all provisions of the Uniform Penalty and Interest
6287		-	Act shall apply, as far as practicable, to booking
6288		-	intermediaries required to be registered under Section 10-30
6289		-	of this Act.
6290		-	(Source: P.A. 101-31, eff. 6-28-19.)
6291		-
6292		-
6293		-	ARTICLE 25. HOTELS-DISASTER RELIEF
6294		-	Section 25-5. The Hotel Operators' Occupation Tax Act is
6295		-	amended by changing Section 3 as follows:
6296		-	(35 ILCS 145/3) (from Ch. 120, par. 481b.33)
6297		-	Sec. 3. Rate; exemptions.
6298		-	(a) A tax is imposed upon persons engaged in the business
6299		-	of renting, leasing or letting rooms in a hotel at the rate of
6300		-	5% of 94% of the gross rental receipts from such renting,
6301		-	leasing or letting, excluding, however, from gross rental
6302		-	receipts, the proceeds of such renting, leasing or letting to
6303		-	permanent residents of that hotel and proceeds from the tax
6304		-	imposed under subsection (c) of Section 13 of the Metropolitan
6305		-	Pier and Exposition Authority Act.
6306		-	(b) There shall be imposed an additional tax upon persons
6307		-	engaged in the business of renting, leasing or letting rooms
6308		-	in a hotel at the rate of 1% of 94% of the gross rental
6309		-	receipts from such renting, leasing or letting, excluding,
6310		-	however, from gross rental receipts, the proceeds of such
6311		-	renting, leasing or letting to permanent residents of that
6312		-	hotel and proceeds from the tax imposed under subsection (c)
6313		-	of Section 13 of the Metropolitan Pier and Exposition
6314		-	Authority Act.
6315		-	(c) No funds received pursuant to this Act shall be used to
6316		-
6317		-
6318		-	advertise for or otherwise promote new competition in the
6319		-	hotel business.
6320		-	(d) However, such tax is not imposed upon the privilege of
6321		-	engaging in any business in Interstate Commerce or otherwise,
6322		-	which business may not, under the Constitution and Statutes of
6323		-	the United States, be made the subject of taxation by this
6324		-	State. In addition, the tax is not imposed upon gross rental
6325		-	receipts for which the hotel operator is prohibited from
6326		-	obtaining reimbursement for the tax from the customer by
6327		-	reason of a federal treaty.
6328		-	(d-5) On and after July 1, 2017, the tax imposed by this
6329		-	Act shall not apply to gross rental receipts received by an
6330		-	entity that is organized and operated exclusively for
6331		-	religious purposes and possesses an active Exemption
6332		-	Identification Number issued by the Department pursuant to the
6333		-	Retailers' Occupation Tax Act when acting as a hotel operator
6334		-	renting, leasing, or letting rooms:
6335		-	(1) in furtherance of the purposes for which it is
6336		-	organized; or
6337		-	(2) to entities that (i) are organized and operated
6338		-	exclusively for religious purposes, (ii) possess an active
6339		-	Exemption Identification Number issued by the Department
6340		-	pursuant to the Retailers' Occupation Tax Act, and (iii)
6341		-	rent the rooms in furtherance of the purposes for which
6342		-	they are organized.
6343		-	No gross rental receipts are exempt under paragraph (2) of
6344		-
6345		-
6346		-	this subsection (d-5) unless the hotel operator obtains the
6347		-	active Exemption Identification Number from the exclusively
6348		-	religious entity to whom it is renting and maintains that
6349		-	number in its books and records. Gross rental receipts from
6350		-	all rentals other than those described in items (1) or (2) of
6351		-	this subsection (d-5) are subject to the tax imposed by this
6352		-	Act unless otherwise exempt under this Act.
6353		-	This subsection (d-5) is exempt from the sunset provisions
6354		-	of Section 3-5 of this Act.
6355		-	(d-10) On and after July 1, 2023, the tax imposed by this
6356		-	Act shall not apply to gross rental receipts received from the
6357		-	renting, leasing, or letting of rooms to an entity that is
6358		-	organized and operated exclusively by an organization
6359		-	chartered by the United States Congress for the purpose of
6360		-	providing disaster relief and that possesses an active
6361		-	Exemption Identification Number issued by the Department
6362		-	pursuant to the Retailers' Occupation Tax Act if the renting,
6363		-	leasing, or letting of the rooms is in furtherance of the
6364		-	purposes for which the exempt organization is organized. This
6365		-	subsection (d-10) is exempt from the sunset provisions of
6366		-	Section 3-5 of this Act.
6367		-	(e) Persons subject to the tax imposed by this Act may
6368		-	reimburse themselves for their tax liability under this Act by
6369		-	separately stating such tax as an additional charge, which
6370		-	charge may be stated in combination, in a single amount, with
6371		-	any tax imposed pursuant to Sections 8-3-13 and 8-3-14 of the
6372		-
6373		-
6374		-	Illinois Municipal Code, and Section 25.05-10 of "An Act to
6375		-	revise the law in relation to counties".
6376		-	(f) If any hotel operator collects an amount (however
6377		-	designated) which purports to reimburse such operator for
6378		-	hotel operators' occupation tax liability measured by receipts
6379		-	which are not subject to hotel operators' occupation tax, or
6380		-	if any hotel operator, in collecting an amount (however
6381		-	designated) which purports to reimburse such operator for
6382		-	hotel operators' occupation tax liability measured by receipts
6383		-	which are subject to tax under this Act, collects more from the
6384		-	customer than the operators' hotel operators' occupation tax
6385		-	liability in the transaction is, the customer shall have a
6386		-	legal right to claim a refund of such amount from such
6387		-	operator. However, if such amount is not refunded to the
6388		-	customer for any reason, the hotel operator is liable to pay
6389		-	such amount to the Department.
6390		-	(Source: P.A. 100-213, eff. 8-18-17.)
6391		-	ARTICLE 30. MUNICIPAL CODE-UTILITIES
6392		-	Section 30-5. The Illinois Municipal Code is amended by
6393		-	changing Section 8-11-2.5 as follows:
6394		-	(65 ILCS 5/8-11-2.5)
6395		-	Sec. 8-11-2.5. Municipal tax review; requests for
6396		-	information.
6397		-
6398		-
6399		-	(a) If a municipality has imposed a tax under Section
6400		-	8-11-2, then the municipality, which may act through its
6401		-	designated auditor or agent, may conduct an audit of tax
6402		-	receipts collected from the public utility that is subject to
6403		-	the tax or that collects the tax from purchasers on behalf of
6404		-	the municipality to determine whether the amount of tax that
6405		-	was paid by the public utility was accurate.
6406		-	(b) Not more than once every 2 years, a municipality that
6407		-	has imposed a tax under Section 8-11-2 of this Code Act may,
6408		-	subject to the limitations and protections stated in the Local
6409		-	Government Taxpayers' Bill of Rights Act, make a written
6410		-	request via e-mail to an e-mail address provided by the
6411		-	utility for any information from a utility in the format
6412		-	maintained by the public utility in the ordinary course of its
6413		-	business that the municipality reasonably requires in order to
6414		-	perform an audit under subsection (a). The information that
6415		-	may be requested by the municipality includes, without
6416		-	limitation:
6417		-	(1) in an electronic format used by the public utility
6418		-	in the ordinary course of its business, the
6419		-	premises-specific and other information used by the public
6420		-	utility to determine the amount of tax due to the
6421		-	municipality, for a time period that includes the year in
6422		-	which the request is made and not more than 6 years
6423		-	immediately preceding that year, as appropriate for the
6424		-	period being audited, and which shall include for each
6425		-
6426		-
6427		-	customer premises in the municipality: (i) the premises
6428		-	address and zip code; (ii) the classification of the
6429		-	premises as designated by the public utility, such as
6430		-	residential, commercial, or industrial; (iii) monthly
6431		-	usage information sufficient to calculate taxes due, in
6432		-	therms, kilowatts, minutes, or other such other unit of
6433		-	measurement used to calculate the taxes; (iv) the taxes
6434		-	actually assessed, collected, and remitted to the
6435		-	municipality; (v) the first date of service for the
6436		-	premises, if that date occurred within the period being
6437		-	audited; and (vi) any tax exemption claimed for the
6438		-	premises and any additional information that supports a
6439		-	specific tax exemption, if the municipality requests that
6440		-	information, including the customer name and other
6441		-	relevant data; however, a public utility that is an
6442		-	electric utility may not provide other customer-specific
6443		-	information to the municipality; and
6444		-	(2) the premises address for customer accounts that
6445		-	the public utility's records indicate are: (i) in a
6446		-	bordering municipality, township, or unincorporated area
6447		-	(other than the City of Chicago), provided that the
6448		-	municipality provides the public utility a list of such
6449		-	bordering jurisdictions; or (ii) in any zip code with
6450		-	boundaries that include or are adjacent to the requesting
6451		-	municipality provided that the municipality provides the
6452		-	public utility a list of those zip codes; this item (ii)
6453		-
6454		-
6455		-	applies to requests made on or after September 1, 2022. If
6456		-	any such customer is determined by the municipality and
6457		-	the utility to be located within the requesting
6458		-	municipality, then the public utility shall provide the
6459		-	additional information provided in paragraph (1) of this
6460		-	subsection (b)..
6461		-	Following the municipality's receipt of the information
6462		-	provided by the public utility pursuant to paragraphs (1) or
6463		-	(2) of this subsection (b), if a question or issue arises that
6464		-	can only be addressed by accessing customer-specific or
6465		-	additional information not described in this Section, then the
6466		-	utility shall attempt to resolve the question or issue without
6467		-	disclosing any customer-specific information. If this process
6468		-	does not resolve the question or issue, then either the
6469		-	municipality or public utility can further pursue the matter
6470		-	before the Department of Revenue, which has the discretion to
6471		-	receive or share customer-specific information with the
6472		-	municipality as appropriate subject to confidentiality
6473		-	restrictions.
6474		-	(c) Each public utility must provide the information
6475		-	requested under subsection (b) within 45 days after the date
6476		-	of the request.
6477		-	The time in which a public utility must provide the
6478		-	information requested under subsection (b) may be extended by
6479		-	an agreement between the municipality and the public utility.
6480		-	(d) If an audit by the municipality or its agents finds an
6481		-
6482		-
6483		-	error by the public utility in the amount of taxes paid by the
6484		-	public utility, then the municipality must notify the public
6485		-	utility of the error. Any such notice must be issued pursuant
6486		-	to Section 30 of the Local Government Taxpayers' Bill of
6487		-	Rights Act or a lesser period of time from the date the tax was
6488		-	due that may be specified in the municipal ordinance imposing
6489		-	the tax. Upon such a notice, any audit shall be conducted
6490		-	pursuant to Section 35 of the Local Government Taxpayers' Bill
6491		-	of Rights Act subject to the timelines set forth in this
6492		-	subsection (d). The public utility must submit a written
6493		-	response within 60 days after the date the notice was
6494		-	postmarked stating that it has corrected the error or stating
6495		-	the reason that the error is inapplicable or inaccurate. The
6496		-	municipality then has 60 days after the receipt of the public
6497		-	utility's response to review and contest the conclusion of the
6498		-	public utility. If the parties are unable to agree on the
6499		-	disposition of the audit findings within 120 days after the
6500		-	notification of the error to the public utility, then either
6501		-	party may submit the matter for appeal as outlined in Section
6502		-	40 of the Local Government Taxpayers' Bill of Rights Act. If
6503		-	the appeals process does not produce a satisfactory result,
6504		-	then either party may pursue the alleged error in a court of
6505		-	competent jurisdiction.
6506		-	(e) The public utility shall be liable to the municipality
6507		-	for unpaid taxes, including taxes that the public utility
6508		-	failed to properly bill to the customer subject to subsection
6509		-
6510		-
6511		-	paragraph (2) of subsection (e-10) of this Section. This
6512		-	subsection (e) does not limit a utility's right to an
6513		-	offsetting credit it would otherwise be entitled to, including
6514		-	that authorized by subsection (c) of Section 8-11-2 of this
6515		-	the Code. To the extent that a public utility's errors in past
6516		-	tax collections and payments relate to premises located in an
6517		-	area of the municipality that was annexed on or after March 17,
6518		-	2023 (the effective date of Public Act 102-1144) this
6519		-	amendatory Act of the 102nd General Assembly, however, the
6520		-	public utility shall only be liable for such errors beginning
6521		-	60 days after the date that the municipality provided the
6522		-	public utility notice of the annexation, provided that the
6523		-	public utility provides municipalities with an email address
6524		-	to send annexation notices. A copy of the annexation ordinance
6525		-	and the map filed with the County Clerk sent to the email
6526		-	address provided by the public utility shall be deemed
6527		-	sufficient notice, but other forms of notice may also be
6528		-	sufficient.
6529		-	(e-5) Upon mutual agreement, a utility and municipality
6530		-	may use a web portal in lieu of email to receive notice of
6531		-	annexations and boundary changes. After December 31, 2025 for
6532		-	a gas public utility that serves more than 2,000,000 customers
6533		-	in Illinois and after December 31, 2022 for all other public
6534		-	utilities that serve more than 1,000,000 retail customers in
6535		-	Illinois, the public utilities shall provide a secure web
6536		-	portal for municipalities to use, and, thereafter, the web
6537		-
6538		-
6539		-	portals shall be used by all municipalities to notify the
6540		-	public utilities of annexations. The web portal must provide
6541		-	the municipality with an electronic record of all
6542		-	communications and attached documents that the municipality
6543		-	has submitted through the portal.
6544		-	(e-10) (1) No later than August 1, 2023, the Department of
6545		-	Revenue shall develop and publish a written process to be used
6546		-	by each public utility and each municipality that imposes a
6547		-	tax under Section 8-11-2 of this the Code, which may act
6548		-	through its designated auditor or agent, under which:
6549		-	(A) by December 31, 2024, and on a regular schedule
6550		-	thereafter to occur approximately every 5 years, each
6551		-	public utility shall work collaboratively with each
6552		-	municipality to develop and file with the Department of
6553		-	Revenue, a master list of all premises addresses in the
6554		-	municipality (including premises addresses with inactive
6555		-	accounts) that are subject to such tax and all accounts in
6556		-	the municipality that are exempt from such tax, provided
6557		-	that the final date for the first master list shall be
6558		-	extended, at the utility's request, to no later than
6559		-	December 31, 2026;
6560		-	(B) information is provided to the municipality to
6561		-	facilitate development of the master list including
6562		-	information described in paragraph (1) of subsection (b)
6563		-	of this Section regarding all accounts (including premises
6564		-	addresses with inactive accounts) that the public
6565		-
6566		-
6567		-	utility's records show are in the municipality and the
6568		-	premises addresses in (i) any bordering municipality, (ii)
6569		-	any bordering township, or (iii) any zip code that is in
6570		-	any part in the municipality or that borders the
6571		-	municipality;
6572		-	(C) any dispute between the public utility and the
6573		-	municipality related to the master list will be resolved;
6574		-	(D) on a semi-annual basis following the development
6575		-	of the master list, each public utility shall provide to
6576		-	each municipality certain information that the
6577		-	municipality can use to nominate changes to the master
6578		-	list, including, but not limited to: (i) a list of any
6579		-	tax-related changes, such as the addition or removal of an
6580		-	exemption, or to the taxing jurisdiction, to any account
6581		-	on the master list; and (ii) new premises addresses within
6582		-	the municipality, any bordering municipality, in any
6583		-	bordering township, or in any zip code that is in any part
6584		-	in the municipality or that borders the municipality;
6585		-	(E) accounts nominated by the municipality to be added
6586		-	or deleted from the master list may be submitted to the
6587		-	public utility and related disputes will be resolved;
6588		-	(F) changes may be made to the master list; and
6589		-	(G) the utility may file a master list based solely on
6590		-	its records if the municipality fails to participate and
6591		-	such a municipality may request to restart the process
6592		-	prior to the end of the 5-year five-year cycle.
6593		-
6594		-
6595		-	(2) No public utility is liable for any error in tax
6596		-	collections or payments due more than 60 days after the date
6597		-	that the first master list for the relevant municipality is
6598		-	filed with the Department of Revenue unless such error in tax
6599		-	collection or payment:
6600		-	(A) was related to a premises address on the master
6601		-	list at the time of the error;
6602		-	(B) was related to an area of the municipality annexed
6603		-	on or after March 17, 2023 (the effective date of Public
6604		-	Act 102-1144) this amendatory Act of the 102nd General
6605		-	Assembly, notice of which was properly provided to the
6606		-	public utility pursuant to the procedures set forth in
6607		-	subsection (e); or
6608		-	(C) resulted from the public utility's failure to
6609		-	comply with the process established in this subsection
6610		-	(e-10).
6611		-	(3) If the public utility uses a portal as set forth in
6612		-	subsection (e-5), all lists, changes affecting tax collection
6613		-	and remission, proposed corrections, and reports shall be
6614		-	provided through such portal.
6615		-	(e-15) If a customer paid a tax to a municipality that the
6616		-	customer did not owe or was in excess of the tax the customer
6617		-	owed, then the customer may, to the extent allowed by Section
6618		-	9-252 of the Public Utilities Act, recover the tax or over
6619		-	payment from the public utility, and any amount so paid by the
6620		-	public utility may be deducted by that public utility from any
6621		-
6622		-
6623		-	taxes then or thereafter owed by the public utility to that
6624		-	municipality.
6625		-	(e-20) (1) Any court of competent jurisdiction The
6626		-	Department of Revenue shall have the authority to resolve a
6627		-	claim by a municipality that a public utility materially
6628		-	failed to comply with the requirements of subsections (b) or
6629		-	(c) of this Section or the process developed under subsection
6630		-	(e-10) of this Section. If a court the Department of Revenue
6631		-	finds, after notice and hearing, that a public utility (i)
6632		-	caused a material delay in providing information properly
6633		-	requested under such subsections or (ii) omitted a material
6634		-	portion of information properly requested, then, if the claim
6635		-	relates to subsections (b) or (c), the court Department shall
6636		-	assess a penalty on the utility of up to $50,000 per audit, or
6637		-	up to $10,000 per audit for a utility that served less than
6638		-	100,000 retail customers on the date of the audit notice, or,
6639		-	if the claim relates to subsection (e-10), up to $50,000 per
6640		-	5-year master list cycle or up to $10,000 per cycle for a
6641		-	utility that served less than 100,000 retail customers on the
6642		-	date such master list was filed with the Department, which
6643		-	penalty shall be paid by the public utility to the
6644		-	municipality Department of Revenue for deposit into the
6645		-	Supplemental Low-Income Energy Assistance Fund.
6646		-	Notwithstanding anything to the contrary, a penalty assessed
6647		-	pursuant to this subsection shall be the exclusive remedy for
6648		-	the conduct that is the subject of the claim. A penalty
6649		-
6650		-
6651		-	assessed under this subsection shall bar and prohibit pursuit
6652		-	of any other penalty, fine, or recovery related to the conduct
6653		-	for which the penalty was assessed.
6654		-	(2) No penalty shall be assessed by the Department
6655		-	pursuant to this subsection if the Department finds that a
6656		-	delay or omission was immaterial or de minimis.
6657		-	(3) Any penalties or fines paid by a public utility
6658		-	pursuant to this subsection shall not be recoverable through
6659		-	the utility's rates.
6660		-	(4) (Blank). If a municipality and public utility have a
6661		-	disagreement regarding the scope or conduct of an audit
6662		-	undertaken pursuant to this Section, they shall work together
6663		-	in good faith to attempt to resolve the dispute. If, after a
6664		-	period of no less than 14 days, the municipality and public
6665		-	utility are not able to reach an agreement regarding the
6666		-	dispute, either entity, or both entities jointly, may submit a
6667		-	request to the Illinois Department of Revenue seeking
6668		-	resolution of the dispute, and the Department shall have the
6669		-	authority to resolve the issue, and shall resolve such dispute
6670		-	within 60 days. Each such request must include a statement
6671		-	showing that consultation and reasonable attempts to resolve
6672		-	the dispute have failed.
6673		-	The time period established pursuant to this Section for
6674		-	complying with requests for information under this Section
6675		-	shall be suspended during the dispute resolution processes set
6676		-	forth in this paragraph (4) of subsection (e-20), but only for
6677		-
6678		-
6679		-	the issue or issues that are the subject of the dispute.
6680		-	Information requests that are undisputed shall continue to be
6681		-	subject to the time periods for compliance set forth in this
6682		-	Section.
6683		-	(f) All account-specific account specific and
6684		-	premises-specific information provided by a public utility
6685		-	under this Section may be used only for the purpose of an audit
6686		-	of taxes conducted under this Section and the enforcement of
6687		-	any related tax claim. All such information must be held in
6688		-	strict confidence by the municipality and its agents and may
6689		-	not be disclosed to the public under the Freedom of
6690		-	Information Act or under any other similar statutes allowing
6691		-	for or requiring public disclosure.
6692		-	(g) The provisions of this Section shall not be construed
6693		-	as diminishing or replacing any civil remedy available to a
6694		-	municipality, taxpayer, or tax collector.
6695		-	(h) This Section does not apply to any municipality having
6696		-	a population greater than 1,000,000.
6697		-	(i) The changes to subsection (e) and paragraph (2) of
6698		-	subsection (e-10) of this Section made by Public Act 102-1144
6699		-	this amendatory Act of the 102nd General Assembly apply to
6700		-	taxes due on or after August 1, 2022. The remaining changes to
6701		-	this Section made by Public Act 102-1144 this amendatory Act
6702		-	of the 102nd General Assembly apply on or after March 17, 2023
6703		-	(the effective date of Public Act 102-1144) this amendatory
6704		-	Act of the 102nd General Assembly.
6705		-
6706		-
6707		-	(j) As used in this Section:
6708		-	"Customer-specific information" means the name, phone
6709		-	number, email address, and banking information of a customer.
6710		-	"Customer-specific information" includes the load-shape data
6711		-	associated with a customer account. "Customer-specific
6712		-	information" does not include the tax-exempt status of the
6713		-	premises and the name of tax-exempt tax exempt customers.
6714		-	"Premises-specific information" means any information,
6715		-	including billing and usage data, associated with a premises
6716		-	address that is not customer-specific information.
6717		-	"Premises address" includes the jurisdiction to which the
6718		-	address is currently coded by the public utility for municipal
6719		-	tax purposes.
6720		-	(Source: P.A. 102-1144, eff. 3-17-23; revised 4-5-23.)
6721		-	ARTICLE 35. RIVER EDGE ZONES
6722		-	Section 35-5. The River Edge Redevelopment Zone Act is
6723		-	amended by changing Section 10-5.3 as follows:
6724		-	(65 ILCS 115/10-5.3)
6725		-	Sec. 10-5.3. Certification of River Edge Redevelopment
6726		-	Zones.
6727		-	(a) Approval of designated River Edge Redevelopment Zones
6728		-	shall be made by the Department by certification of the
6729		-	designating ordinance. The Department shall promptly issue a
6730		-
6731		-
6732		-	certificate for each zone upon its approval. The certificate
6733		-	shall be signed by the Director of the Department, shall make
6734		-	specific reference to the designating ordinance, which shall
6735		-	be attached thereto, and shall be filed in the office of the
6736		-	Secretary of State. A certified copy of the River Edge
6737		-	Redevelopment Zone Certificate, or a duplicate original
6738		-	thereof, shall be recorded in the office of the recorder of
6739		-	deeds of the county in which the River Edge Redevelopment Zone
6740		-	lies.
6741		-	(b) A River Edge Redevelopment Zone shall be effective
6742		-	upon its certification. The Department shall transmit a copy
6743		-	of the certification to the Department of Revenue, and to the
6744		-	designating municipality. Upon certification of a River Edge
6745		-	Redevelopment Zone, the terms and provisions of the
6746		-	designating ordinance shall be in effect, and may not be
6747		-	amended or repealed except in accordance with Section 10-5.4.
6748		-	(c) A River Edge Redevelopment Zone shall be in effect for
6749		-	the period stated in the certificate, which shall in no event
6750		-	exceed 30 calendar years. Zones shall terminate at midnight of
6751		-	December 31 of the final calendar year of the certified term,
6752		-	except as provided in Section 10-5.4.
6753		-	(d) In calendar years 2006 and 2007, the Department may
6754		-	certify one pilot River Edge Redevelopment Zone in the City of
6755		-	East St. Louis, one pilot River Edge Redevelopment Zone in the
6756		-	City of Rockford, and one pilot River Edge Redevelopment Zone
6757		-	in the City of Aurora.
6758		-
6759		-
6760		-	In calendar year 2009, the Department may certify one
6761		-	pilot River Edge Redevelopment Zone in the City of Elgin.
6762		-	On or after the effective date of this amendatory Act of
6763		-	the 97th General Assembly, the Department may certify one
6764		-	additional pilot River Edge Redevelopment Zone in the City of
6765		-	Peoria.
6766		-	On or after the effective date of this amendatory Act of
6767		-	the 103rd General Assembly, the Department may certify 2
6768		-	additional pilot River Edge Redevelopment Zones, including one
6769		-	in the City of Joliet and one in the City of Kankakee.
6770		-	After certifying the additional pilot River Edge
6771		-	Redevelopment Zones authorized by the above paragraphs,
6772		-	Thereafter the Department may not certify any additional River
6773		-	Edge Redevelopment Zones, but it may amend and rescind
6774		-	certifications of existing River Edge Redevelopment Zones in
6775		-	accordance with Section 10-5.4, except that no River Edge
6776		-	Redevelopment Zone may be extended on or after the effective
6777		-	date of this amendatory Act of the 97th General Assembly. Each
6778		-	River Edge Redevelopment Zone in existence on the effective
6779		-	date of this amendatory Act of the 97th General Assembly shall
6780		-	continue until its scheduled termination under this Act,
6781		-	unless the Zone is decertified sooner. At the time of its term
6782		-	expiration each River Edge Redevelopment Zone will become an
6783		-	open enterprise zone, available for the previously designated
6784		-	area or a different area to compete for designation as an
6785		-	enterprise zone. No preference for designation as a Zone will
6786		-
6787		-
6788		-	be given to the previously designated area.
6789		-	(e) A municipality in which a River Edge Redevelopment
6790		-	Zone has been certified must submit to the Department, within
6791		-	60 days after the certification, a plan for encouraging the
6792		-	participation by minority persons, women, persons with
6793		-	disabilities, and veterans in the zone. The Department may
6794		-	assist the municipality in developing and implementing the
6795		-	plan. The terms "minority person", "woman", and "person with a
6796		-	disability" have the meanings set forth under Section 2 of the
6797		-	Business Enterprise for Minorities, Women, and Persons with
6798		-	Disabilities Act. "Veteran" means an Illinois resident who is
6799		-	a veteran as defined in subsection (h) of Section 1491 of Title
6800		-	10 of the United States Code.
6801		-	(Source: P.A. 100-391, eff. 8-25-17.)
6802		-	ARTICLE 40. HISTORIC PRESERVATION
6803		-	Section 40-5. The Illinois Income Tax Act is amended by
6804		-	changing Section 228 as follows:
6805		-	(35 ILCS 5/228)
6806		-	Sec. 228. Historic preservation credit. For tax years
6807		-	beginning on or after January 1, 2019 and ending on or before
6808		-	December 31, 2028 December 31, 2023, a taxpayer who qualifies
6809		-	for a credit under the Historic Preservation Tax Credit Act is
6810		-	entitled to a credit against the taxes imposed under
6811		-
6812		-
6813		-	subsections (a) and (b) of Section 201 of this Act as provided
6814		-	in that Act. If the taxpayer is a partnership, Subchapter S
6815		-	corporation, or a limited liability company the credit shall
6816		-	be allowed to the partners, shareholders, or members in
6817		-	accordance with the determination of income and distributive
6818		-	share of income under Sections 702 and 704 and Subchapter S of
6819		-	the Internal Revenue Code provided that credits granted to a
6820		-	partnership, a limited liability company taxed as a
6821		-	partnership, or other multiple owners of property shall be
6822		-	passed through to the partners, members, or owners
6823		-	respectively on a pro rata basis or pursuant to an executed
6824		-	agreement among the partners, members, or owners documenting
6825		-	any alternate distribution method. If the amount of any tax
6826		-	credit awarded under this Section exceeds the qualified
6827		-	taxpayer's income tax liability for the year in which the
6828		-	qualified rehabilitation plan was placed in service, the
6829		-	excess amount may be carried forward as provided in the
6830		-	Historic Preservation Tax Credit Act.
6831		-	(Source: P.A. 101-81, eff. 7-12-19; 102-741, eff. 5-6-22.)
6832		-	Section 40-10. The Historic Preservation Tax Credit Act is
6833		-	amended by changing Sections 10 and 20 as follows:
6834		-	(35 ILCS 31/10)
6835		-	Sec. 10. Allowable credit.
6836		-	(a) To the extent authorized by this Act, for taxable
6837		-
6838		-
6839		-	years beginning on or after January 1, 2019 and ending on or
6840		-	before December 31, 2028 December 31, 2023, there shall be
6841		-	allowed a tax credit to the qualified taxpayer against the tax
6842		-	imposed by subsections (a) and (b) of Section 201 of the
6843		-	Illinois Income Tax Act in an aggregate amount equal to 25% of
6844		-	qualified expenditures, but not to exceed $3,000,000, incurred
6845		-	undertaking a qualified rehabilitation plan, provided that the
6846		-	total amount of such expenditures must (i) equal $5,000 or
6847		-	more and (ii) exceed the adjusted basis of the structure on the
6848		-	first day the qualified rehabilitation plan commenced. If the
6849		-	qualified rehabilitation plan spans multiple years, the
6850		-	aggregate credit for the entire project shall be allowed in
6851		-	the last taxable year.
6852		-	(b) To obtain a tax credit certificate pursuant to this
6853		-	Section, the qualified taxpayer must apply with the Division.
6854		-	The Division shall determine the amount of eligible
6855		-	rehabilitation expenditures within 45 days after receipt of a
6856		-	complete application. The taxpayer must provide to the
6857		-	Division a third-party cost certification conducted by a
6858		-	certified public accountant verifying (i) the qualified and
6859		-	non-qualified rehabilitation expenses and (ii) that the
6860		-	qualified expenditures exceed the adjusted basis of the
6861		-	structure on the first day the qualified rehabilitation plan
6862		-	commenced. The accountant shall provide appropriate review and
6863		-	testing of invoices. The Division is authorized, but not
6864		-	required, to accept this third-party cost certification to
6865		-
6866		-
6867		-	determine the amount of qualified expenditures. The Division
6868		-	and the National Park Service shall determine whether the
6869		-	rehabilitation is consistent with the Standards of the
6870		-	Secretary of the United States Department of the Interior.
6871		-	(c) If the amount of any tax credit awarded under this Act
6872		-	exceeds the qualified taxpayer's income tax liability for the
6873		-	year in which the qualified rehabilitation plan was placed in
6874		-	service, the excess amount may be carried forward for
6875		-	deduction from the taxpayer's income tax liability in the next
6876		-	succeeding year or years until the total amount of the credit
6877		-	has been used, except that a credit may not be carried forward
6878		-	for deduction after the tenth taxable year after the taxable
6879		-	year in which the qualified rehabilitation plan was placed in
6880		-	service. Upon completion of the project and approval of the
6881		-	complete application, the Division shall issue a single
6882		-	certificate in the amount of the eligible credits equal to 25%
6883		-	of the qualified expenditures incurred during the eligible
6884		-	taxable years, not to exceed the lesser of the allocated
6885		-	amount or $3,000,000 per single qualified rehabilitation plan.
6886		-	Prior to the issuance of the tax credit certificate, the
6887		-	qualified taxpayer must provide to the Division verification
6888		-	that the rehabilitated structure is a qualified historic
6889		-	structure. At the time the certificate is issued, an issuance
6890		-	fee up to the maximum amount of 2% of the amount of the credits
6891		-	issued by the certificate may be collected from the qualified
6892		-	taxpayer to administer the Act. If collected, this issuance
6893		-
6894		-
6895		-	fee shall be directed to the Division Historic Property
6896		-	Administrative Fund or other such fund as appropriate for use
6897		-	of the Division in the administration of the Historic
6898		-	Preservation Tax Credit Program. The taxpayer must attach the
6899		-	certificate or legal documentation of her or his proportional
6900		-	share of the certificate to the tax return on which the credits
6901		-	are to be claimed. The tax credit under this Section may not
6902		-	reduce the taxpayer's liability to less than zero. If the
6903		-	amount of the credit exceeds the tax liability for the year,
6904		-	the excess credit may be carried forward and applied to the tax
6905		-	liability of the 10 taxable years following the first excess
6906		-	credit year. The taxpayer is not eligible to receive credits
6907		-	under this Section and under Section 221 of the Illinois
6908		-	Income Tax Act for the same qualified expenditures or
6909		-	qualified rehabilitation plan.
6910		-	(d) If the taxpayer is (i) a corporation having an
6911		-	election in effect under Subchapter S of the federal Internal
6912		-	Revenue Code, (ii) a partnership, or (iii) a limited liability
6913		-	company, the credit provided under this Act may be claimed by
6914		-	the shareholders of the corporation, the partners of the
6915		-	partnership, or the members of the limited liability company
6916		-	in the same manner as those shareholders, partners, or members
6917		-	account for their proportionate shares of the income or losses
6918		-	of the corporation, partnership, or limited liability company,
6919		-	or as provided in the bylaws or other executed agreement of the
6920		-	corporation, partnership, or limited liability company.
6921		-
6922		-
6923		-	Credits granted to a partnership, a limited liability company
6924		-	taxed as a partnership, or other multiple owners of property
6925		-	shall be passed through to the partners, members, or owners
6926		-	respectively on a pro rata basis or pursuant to an executed
6927		-	agreement among the partners, members, or owners documenting
6928		-	any alternate distribution method.
6929		-	(e) If a recapture event occurs during the recapture
6930		-	period with respect to a qualified historic structure, then
6931		-	for any taxable year in which the credits are allowed as
6932		-	specified in this Act, the tax under the applicable Section of
6933		-	this Act shall be increased by applying the recapture
6934		-	percentage set forth below to the tax decrease resulting from
6935		-	the application of credits allowed under this Act to the
6936		-	taxable year in question.
6937		-	For the purposes of this subsection, the recapture
6938		-	percentage shall be determined as follows:
6939		-	(1) if the recapture event occurs within the first
6940		-	year after commencement of the recapture period, then the
6941		-	recapture percentage is 100%;
6942		-	(2) if the recapture event occurs within the second
6943		-	year after commencement of the recapture period, then the
6944		-	recapture percentage is 80%;
6945		-	(3) if the recapture event occurs within the third
6946		-	year after commencement of the recapture period, then the
6947		-	recapture percentage is 60%;
6948		-	(4) if the recapture event occurs within the fourth
6949		-
6950		-
6951		-	year after commencement of the recapture period, then the
6952		-	recapture percentage is 40%; and
6953		-	(5) if the recapture event occurs within the fifth
6954		-	year after commencement of the recapture period, then the
6955		-	recapture percentage is 20%.
6956		-	In the case of any recapture event, the carryforwards
6957		-	under this Act shall be adjusted by reason of such event.
6958		-	(f) The Division may adopt rules to implement this Section
6959		-	in addition to the rules expressly authorized herein.
6960		-	(Source: P.A. 101-81, eff. 7-12-19; 102-741, eff. 5-6-22.)
6961		-	(35 ILCS 31/20)
6962		-	Sec. 20. Limitations, reporting, and monitoring.
6963		-	(a) In each every calendar year beginning on or after
6964		-	January 1, 2019 and ending on or before December 31, 2023 that
6965		-	this program is in effect, the Division is authorized to
6966		-	allocate $15,000,000 in tax credits in addition to any
6967		-	unallocated, returned, or rescinded allocations from previous
6968		-	years, pursuant to qualified rehabilitation plans. In each
6969		-	calendar year beginning on or after January 1, 2024 and ending
6970		-	on or before December 31, 2028, the Division is authorized to
6971		-	allocate $25,000,000 in tax credits in addition to any
6972		-	unallocated, returned, or rescinded allocations from previous
6973		-	years, pursuant to qualified rehabilitation plans. The
6974		-	Division shall not allocate or award more than $3,000,000 in
6975		-	tax credits with regard to a single qualified rehabilitation
6976		-
6977		-
6978		-	plan. In allocating tax credits under this Act, the Division
6979		-	must prioritize applications that meet one or more of the
6980		-	following:
6981		-	(1) the structure is located in a county that borders
6982		-	a State with a historic income-producing property
6983		-	rehabilitation credit;
6984		-	(2) the structure was previously owned by a federal,
6985		-	state, or local governmental entity for no less than 6
6986		-	months;
6987		-	(3) the structure is located in a census tract that
6988		-	has a median family income at or below the State median
6989		-	family income; data from the most recent 5-year estimate
6990		-	from the American Community Survey (ACS), published by the
6991		-	U.S. Census Bureau, shall be used to determine
6992		-	eligibility;
6993		-	(4) the qualified rehabilitation plan includes in the
6994		-	development partnership a Community Development Entity or
6995		-	a low-profit (B Corporation) or not-for-profit
6996		-	organization, as defined by Section 501(c)(3) of the
6997		-	Internal Revenue Code; or
6998		-	(5) the structure is located in an area declared under
6999		-	an Emergency Declaration or Major Disaster Declaration
7000		-	under the federal Robert T. Stafford Disaster Relief and
7001		-	Emergency Assistance Act. The declaration must be no older
7002		-	than 3 years at the time of application.
7003		-	(b) The annual aggregate authorization of $15,000,000 set
7004		-
7005		-
7006		-	forth in subsection (a) shall be allocated by the Division, in
7007		-	such proportion as determined by the Director twice in each
7008		-	calendar year that the program is in effect, provided that the
7009		-	amount initially allocated by the Division for the first
7010		-	calendar year application period shall not exceed 65% of the
7011		-	total amount available for allocation. Any unallocated amount
7012		-	remaining as of the end of the second application period of a
7013		-	given calendar year shall be rolled over and added to the total
7014		-	authorized amount for the next available calendar year. The
7015		-	qualified rehabilitation plan must meet a readiness test, as
7016		-	defined by the Division, in order for the application to
7017		-	qualify. In any given application period, applications that
7018		-	qualify under this Act will be prioritized as set forth in
7019		-	subsection (a) and placed in a queue based on the date and time
7020		-	the application is received. Applicants whose applications
7021		-	qualify but do not receive an allocation must reapply to be
7022		-	considered in subsequent application periods.
7023		-	(c) Subject to appropriation to the Division, moneys in
7024		-	the Historic Property Administrative Fund shall be used, on a
7025		-	biennial basis, beginning at the end of the second fiscal year
7026		-	after the effective date of this Act, to hire a qualified third
7027		-	party to prepare a biennial report to assess the overall
7028		-	impact of this Act from the qualified rehabilitation plans
7029		-	under this Act completed in that year and in previous years.
7030		-	Baseline data of the metrics in the report shall be collected
7031		-	at the initiation of a qualified rehabilitation plan. The
7032		-
7033		-
7034		-	overall economic impact shall include at least:
7035		-	(1) the number of applications, project locations, and
7036		-	proposed use of qualified historic structures;
7037		-	(2) the amount of credits awarded and the number and
7038		-	location of projects receiving credit allocations;
7039		-	(3) the status of ongoing projects and projected
7040		-	qualifying expenditures for ongoing projects;
7041		-	(4) for completed projects, the total amount of
7042		-	qualifying rehabilitation expenditures and non-qualifying
7043		-	expenditures, the number of housing units created and the
7044		-	number of housing units that qualify as affordable, and
7045		-	the total square footage rehabilitated and developed;
7046		-	(5) direct, indirect, and induced economic impacts;
7047		-	(6) temporary, permanent, and construction jobs
7048		-	created; and
7049		-	(7) sales, income, and property tax generation before
7050		-	construction, during construction, and after completion.
7051		-	The report to the General Assembly shall be filed with the
7052		-	Clerk of the House of Representatives and the Secretary of the
7053		-	Senate in electronic form only, in the manner that the Clerk
7054		-	and the Secretary shall direct.
7055		-	(d) Any time prior to issuance of a tax credit
7056		-	certificate, the Director of the Division, the State Historic
7057		-	Preservation Officer, or staff of the Division may, upon
7058		-	reasonable notice of not less than 3 business days, conduct a
7059		-	site visit to the project to inspect and evaluate the project.
7060		-
7061		-
7062		-	(e) Any time prior to the issuance of a tax credit
7063		-	certificate, the Director may, upon reasonable notice of not
7064		-	less than 30 calendar days, request a status report from the
7065		-	Applicant consisting of information and updates relevant to
7066		-	the status of the project. Status reports shall not be
7067		-	requested more than twice yearly.
7068		-	(f) In order to demonstrate sufficient evidence of
7069		-	reviewable progress within 12 months after the date the
7070		-	Applicant received notification of allocation from the
7071		-	Division, the Director may require the Applicant to provide
7072		-	all of the following:
7073		-	(1) a viable financial plan which demonstrates by way
7074		-	of an executed agreement that all financing has been
7075		-	secured for the project; such financing shall include, but
7076		-	not be limited to, equity investment as demonstrated by
7077		-	letters of commitment from the owner of the property,
7078		-	investment partners, and equity investors;
7079		-	(2) (blank); and
7080		-	(3) all historic approvals, including all federal and
7081		-	State rehabilitation documents required by the Division.
7082		-	The Director shall review the submitted evidence and may
7083		-	request additional documentation from the Applicant if
7084		-	necessary. The Applicant will have 30 calendar days to provide
7085		-	the information requested, otherwise the allocation may be
7086		-	rescinded at the discretion of the Director.
7087		-	(g) In order to demonstrate sufficient evidence of
7088		-
7089		-
7090		-	reviewable progress within 24 months after the date the
7091		-	application received notification of approval from the
7092		-	Division, the Director may require the Applicant to provide
7093		-	detailed evidence that the Applicant has secured and closed on
7094		-	financing for the complete scope of rehabilitation for the
7095		-	project. To demonstrate evidence that the Applicant has
7096		-	secured and closed on financing, the Applicant will need to
7097		-	provide signed and processed loan agreements, bank financing
7098		-	documents or other legal and contractual evidence to
7099		-	demonstrate that adequate financing is available to complete
7100		-	the project. The Director shall review the submitted evidence
7101		-	and may request additional documentation from the Applicant if
7102		-	necessary. The Applicant will have 30 calendar days to provide
7103		-	the information requested, otherwise the allocation may be
7104		-	rescinded at the discretion of the Director.
7105		-	If the Applicant fails to document reviewable progress
7106		-	within 24 months of approval, the Director may notify the
7107		-	Applicant that the allocation is rescinded. However, should
7108		-	financing and construction be imminent, the Director may elect
7109		-	to grant the Applicant no more than 5 months to close on
7110		-	financing and commence construction. If the Applicant fails to
7111		-	meet these conditions in the required timeframe, the Director
7112		-	shall notify the Applicant that the allocation is rescinded.
7113		-	Any such rescinded allocation shall be added to the aggregate
7114		-	amount of credits available for allocation for the year in
7115		-	which the forfeiture occurred.
7116		-
7117		-
7118		-	The amount of the qualified expenditures identified in the
7119		-	qualified taxpayer's certification of completion and reflected
7120		-	on the Historic Preservation Tax Credit certificate issued by
7121		-	the Director is subject to inspection, examination, and audit
7122		-	by the Department of Revenue.
7123		-	The qualified taxpayer shall establish and maintain for a
7124		-	period of 4 years following the effective date on a project tax
7125		-	credit certificate such records as required by the Director.
7126		-	Such records include, but are not limited to, records
7127		-	documenting project expenditures and compliance with the U.S.
7128		-	Secretary of the Interior's Standards. The qualified taxpayer
7129		-	shall make such records available for review and verification
7130		-	by the Director, the State Historic Preservation Officer, the
7131		-	Department of Revenue, or appropriate staff, as well as other
7132		-	appropriate State agencies. In the event the Director
7133		-	determines an Applicant has submitted a status report
7134		-	containing erroneous information or data not supported by
7135		-	records established and maintained under this Act, the
7136		-	Director may, after providing notice, require the Applicant to
7137		-	resubmit corrected reports.
7138		-	(Source: P.A. 102-741, eff. 5-6-22.)
7139		-	ARTICLE 45. HIGH IMPACT BUSINESSES
7140		-	Section 45-5. The Illinois Enterprise Zone Act is amended
7141		-	by changing Section 5.5 as follows:
7142		-
7143		-
7144		-	(20 ILCS 655/5.5) (from Ch. 67 1/2, par. 609.1)
7145		-	Sec. 5.5. High Impact Business.
7146		-	(a) In order to respond to unique opportunities to assist
7147		-	in the encouragement, development, growth, and expansion of
7148		-	the private sector through large scale investment and
7149		-	development projects, the Department is authorized to receive
7150		-	and approve applications for the designation of "High Impact
7151		-	Businesses" in Illinois, for an initial term of 20 years with
7152		-	an option for renewal for a term not to exceed 20 years,
7153		-	subject to the following conditions:
7154		-	(1) such applications may be submitted at any time
7155		-	during the year;
7156		-	(2) such business is not located, at the time of
7157		-	designation, in an enterprise zone designated pursuant to
7158		-	this Act;
7159		-	(3) the business intends to do one or more of the
7160		-	following:
7161		-	(A) the business intends to make a minimum
7162		-	investment of $12,000,000 which will be placed in
7163		-	service in qualified property and intends to create
7164		-	500 full-time equivalent jobs at a designated location
7165		-	in Illinois or intends to make a minimum investment of
7166		-	$30,000,000 which will be placed in service in
7167		-	qualified property and intends to retain 1,500
7168		-	full-time retained jobs at a designated location in
7169		-
7170		-
7171		-	Illinois. The terms "placed in service" and "qualified
7172		-	property" have the same meanings as described in
7173		-	subsection (h) of Section 201 of the Illinois Income
7174		-	Tax Act; or
7175		-	(B) the business intends to establish a new
7176		-	electric generating facility at a designated location
7177		-	in Illinois. "New electric generating facility", for
7178		-	purposes of this Section, means a newly constructed
7179		-	electric generation plant or a newly constructed
7180		-	generation capacity expansion at an existing electric
7181		-	generation plant, including the transmission lines and
7182		-	associated equipment that transfers electricity from
7183		-	points of supply to points of delivery, and for which
7184		-	such new foundation construction commenced not sooner
7185		-	than July 1, 2001. Such facility shall be designed to
7186		-	provide baseload electric generation and shall operate
7187		-	on a continuous basis throughout the year; and (i)
7188		-	shall have an aggregate rated generating capacity of
7189		-	at least 1,000 megawatts for all new units at one site
7190		-	if it uses natural gas as its primary fuel and
7191		-	foundation construction of the facility is commenced
7192		-	on or before December 31, 2004, or shall have an
7193		-	aggregate rated generating capacity of at least 400
7194		-	megawatts for all new units at one site if it uses coal
7195		-	or gases derived from coal as its primary fuel and
7196		-	shall support the creation of at least 150 new
7197		-
7198		-
7199		-	Illinois coal mining jobs, or (ii) shall be funded
7200		-	through a federal Department of Energy grant before
7201		-	December 31, 2010 and shall support the creation of
7202		-	Illinois coal-mining jobs, or (iii) shall use coal
7203		-	gasification or integrated gasification-combined cycle
7204		-	units that generate electricity or chemicals, or both,
7205		-	and shall support the creation of Illinois coal-mining
7206		-	jobs. The term "placed in service" has the same
7207		-	meaning as described in subsection (h) of Section 201
7208		-	of the Illinois Income Tax Act; or
7209		-	(B-5) the business intends to establish a new
7210		-	gasification facility at a designated location in
7211		-	Illinois. As used in this Section, "new gasification
7212		-	facility" means a newly constructed coal gasification
7213		-	facility that generates chemical feedstocks or
7214		-	transportation fuels derived from coal (which may
7215		-	include, but are not limited to, methane, methanol,
7216		-	and nitrogen fertilizer), that supports the creation
7217		-	or retention of Illinois coal-mining jobs, and that
7218		-	qualifies for financial assistance from the Department
7219		-	before December 31, 2010. A new gasification facility
7220		-	does not include a pilot project located within
7221		-	Jefferson County or within a county adjacent to
7222		-	Jefferson County for synthetic natural gas from coal;
7223		-	or
7224		-	(C) the business intends to establish production
7225		-
7226		-
7227		-	operations at a new coal mine, re-establish production
7228		-	operations at a closed coal mine, or expand production
7229		-	at an existing coal mine at a designated location in
7230		-	Illinois not sooner than July 1, 2001; provided that
7231		-	the production operations result in the creation of
7232		-	150 new Illinois coal mining jobs as described in
7233		-	subdivision (a)(3)(B) of this Section, and further
7234		-	provided that the coal extracted from such mine is
7235		-	utilized as the predominant source for a new electric
7236		-	generating facility. The term "placed in service" has
7237		-	the same meaning as described in subsection (h) of
7238		-	Section 201 of the Illinois Income Tax Act; or
7239		-	(D) the business intends to construct new
7240		-	transmission facilities or upgrade existing
7241		-	transmission facilities at designated locations in
7242		-	Illinois, for which construction commenced not sooner
7243		-	than July 1, 2001. For the purposes of this Section,
7244		-	"transmission facilities" means transmission lines
7245		-	with a voltage rating of 115 kilovolts or above,
7246		-	including associated equipment, that transfer
7247		-	electricity from points of supply to points of
7248		-	delivery and that transmit a majority of the
7249		-	electricity generated by a new electric generating
7250		-	facility designated as a High Impact Business in
7251		-	accordance with this Section. The term "placed in
7252		-	service" has the same meaning as described in
7253		-
7254		-
7255		-	subsection (h) of Section 201 of the Illinois Income
7256		-	Tax Act; or
7257		-	(E) the business intends to establish a new wind
7258		-	power facility at a designated location in Illinois.
7259		-	For purposes of this Section, "new wind power
7260		-	facility" means a newly constructed electric
7261		-	generation facility, a newly constructed expansion of
7262		-	an existing electric generation facility, or the
7263		-	replacement of an existing electric generation
7264		-	facility, including the demolition and removal of an
7265		-	electric generation facility irrespective of whether
7266		-	it will be replaced, placed in service or replaced on
7267		-	or after July 1, 2009, that generates electricity
7268		-	using wind energy devices, and such facility shall be
7269		-	deemed to include any permanent structures associated
7270		-	with the electric generation facility and all
7271		-	associated transmission lines, substations, and other
7272		-	equipment related to the generation of electricity
7273		-	from wind energy devices. For purposes of this
7274		-	Section, "wind energy device" means any device, with a
7275		-	nameplate capacity of at least 0.5 megawatts, that is
7276		-	used in the process of converting kinetic energy from
7277		-	the wind to generate electricity; or
7278		-	(E-5) the business intends to establish a new
7279		-	utility-scale solar facility at a designated location
7280		-	in Illinois. For purposes of this Section, "new
7281		-
7282		-
7283		-	utility-scale solar power facility" means a newly
7284		-	constructed electric generation facility, or a newly
7285		-	constructed expansion of an existing electric
7286		-	generation facility, placed in service on or after
7287		-	July 1, 2021, that (i) generates electricity using
7288		-	photovoltaic cells and (ii) has a nameplate capacity
7289		-	that is greater than 5,000 kilowatts, and such
7290		-	facility shall be deemed to include all associated
7291		-	transmission lines, substations, energy storage
7292		-	facilities, and other equipment related to the
7293		-	generation and storage of electricity from
7294		-	photovoltaic cells; or
7295		-	(F) the business commits to (i) make a minimum
7296		-	investment of $500,000,000, which will be placed in
7297		-	service in a qualified property, (ii) create 125
7298		-	full-time equivalent jobs at a designated location in
7299		-	Illinois, (iii) establish a fertilizer plant at a
7300		-	designated location in Illinois that complies with the
7301		-	set-back standards as described in Table 1: Initial
7302		-	Isolation and Protective Action Distances in the 2012
7303		-	Emergency Response Guidebook published by the United
7304		-	States Department of Transportation, (iv) pay a
7305		-	prevailing wage for employees at that location who are
7306		-	engaged in construction activities, and (v) secure an
7307		-	appropriate level of general liability insurance to
7308		-	protect against catastrophic failure of the fertilizer
7309		-
7310		-
7311		-	plant or any of its constituent systems; in addition,
7312		-	the business must agree to enter into a construction
7313		-	project labor agreement including provisions
7314		-	establishing wages, benefits, and other compensation
7315		-	for employees performing work under the project labor
7316		-	agreement at that location; for the purposes of this
7317		-	Section, "fertilizer plant" means a newly constructed
7318		-	or upgraded plant utilizing gas used in the production
7319		-	of anhydrous ammonia and downstream nitrogen
7320		-	fertilizer products for resale; for the purposes of
7321		-	this Section, "prevailing wage" means the hourly cash
7322		-	wages plus fringe benefits for training and
7323		-	apprenticeship programs approved by the U.S.
7324		-	Department of Labor, Bureau of Apprenticeship and
7325		-	Training, health and welfare, insurance, vacations and
7326		-	pensions paid generally, in the locality in which the
7327		-	work is being performed, to employees engaged in work
7328		-	of a similar character on public works; this paragraph
7329		-	(F) applies only to businesses that submit an
7330		-	application to the Department within 60 days after
7331		-	July 25, 2013 (the effective date of Public Act
7332		-	98-109); or and
7333		-	(G) the business intends to establish a new
7334		-	cultured cell material food production facility at a
7335		-	designated location in Illinois. As used in this
7336		-	paragraph (G):
7337		-
7338		-
7339		-	"Cultured cell material food production facility"
7340		-	means a facility (i) at which cultured animal cell
7341		-	food is developed using animal cell culture
7342		-	technology, (ii) at which production processes occur
7343		-	that include the establishment of cell lines and cell
7344		-	banks, manufacturing controls, and all components and
7345		-	inputs, and (iii) that complies with all existing
7346		-	registrations, inspections, licensing, and approvals
7347		-	from all applicable and participating State and
7348		-	federal food agencies, including the Department of
7349		-	Agriculture, the Department of Public Health, and the
7350		-	United States Food and Drug Administration, to ensure
7351		-	that all food production is safe and lawful under
7352		-	provisions of the Federal Food, Drug and Cosmetic Act
7353		-	related to the development, production, and storage of
7354		-	cultured animal cell food.
7355		-	"New cultured cell material food production
7356		-	facility" means a newly constructed cultured cell
7357		-	material food production facility that is placed in
7358		-	service on or after the effective date of this
7359		-	amendatory Act of the 103rd General Assembly or a
7360		-	newly constructed expansion of an existing cultured
7361		-	cell material food production facility, in a
7362		-	controlled environment, when the improvements are
7363		-	placed in service on or after the effective date of
7364		-	this amendatory Act of the 103rd General Assembly; and
7365		-
7366		-
7367		-	(4) no later than 90 days after an application is
7368		-	submitted, the Department shall notify the applicant of
7369		-	the Department's determination of the qualification of the
7370		-	proposed High Impact Business under this Section.
7371		-	(b) Businesses designated as High Impact Businesses
7372		-	pursuant to subdivision (a)(3)(A) of this Section shall
7373		-	qualify for the credits and exemptions described in the
7374		-	following Acts: Section 9-222 and Section 9-222.1A of the
7375		-	Public Utilities Act, subsection (h) of Section 201 of the
7376		-	Illinois Income Tax Act, and Section 1d of the Retailers'
7377		-	Occupation Tax Act; provided that these credits and exemptions
7378		-	described in these Acts shall not be authorized until the
7379		-	minimum investments set forth in subdivision (a)(3)(A) of this
7380		-	Section have been placed in service in qualified properties
7381		-	and, in the case of the exemptions described in the Public
7382		-	Utilities Act and Section 1d of the Retailers' Occupation Tax
7383		-	Act, the minimum full-time equivalent jobs or full-time
7384		-	retained jobs set forth in subdivision (a)(3)(A) of this
7385		-	Section have been created or retained. Businesses designated
7386		-	as High Impact Businesses under this Section shall also
7387		-	qualify for the exemption described in Section 5l of the
7388		-	Retailers' Occupation Tax Act. The credit provided in
7389		-	subsection (h) of Section 201 of the Illinois Income Tax Act
7390		-	shall be applicable to investments in qualified property as
7391		-	set forth in subdivision (a)(3)(A) of this Section.
7392		-	(b-5) Businesses designated as High Impact Businesses
7393		-
7394		-
7395		-	pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
7396		-	and (a)(3)(D), and (a)(3)(G) of this Section shall qualify for
7397		-	the credits and exemptions described in the following Acts:
7398		-	Section 51 of the Retailers' Occupation Tax Act, Section 9-222
7399		-	and Section 9-222.1A of the Public Utilities Act, and
7400		-	subsection (h) of Section 201 of the Illinois Income Tax Act;
7401		-	however, the credits and exemptions authorized under Section
7402		-	9-222 and Section 9-222.1A of the Public Utilities Act, and
7403		-	subsection (h) of Section 201 of the Illinois Income Tax Act
7404		-	shall not be authorized until the new electric generating
7405		-	facility, the new gasification facility, the new transmission
7406		-	facility, or the new, expanded, or reopened coal mine, or the
7407		-	new cultured cell material food production facility is
7408		-	operational, except that a new electric generating facility
7409		-	whose primary fuel source is natural gas is eligible only for
7410		-	the exemption under Section 5l of the Retailers' Occupation
7411		-	Tax Act.
7412		-	(b-6) Businesses designated as High Impact Businesses
7413		-	pursuant to subdivision (a)(3)(E) or (a)(3)(E-5) of this
7414		-	Section shall qualify for the exemptions described in Section
7415		-	5l of the Retailers' Occupation Tax Act; any business so
7416		-	designated as a High Impact Business being, for purposes of
7417		-	this Section, a "Wind Energy Business".
7418		-	(b-7) Beginning on January 1, 2021, businesses designated
7419		-	as High Impact Businesses by the Department shall qualify for
7420		-	the High Impact Business construction jobs credit under
7421		-
7422		-
7423		-	subsection (h-5) of Section 201 of the Illinois Income Tax Act
7424		-	if the business meets the criteria set forth in subsection (i)
7425		-	of this Section. The total aggregate amount of credits awarded
7426		-	under the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
7427		-	shall not exceed $20,000,000 in any State fiscal year.
7428		-	(c) High Impact Businesses located in federally designated
7429		-	foreign trade zones or sub-zones are also eligible for
7430		-	additional credits, exemptions and deductions as described in
7431		-	the following Acts: Section 9-221 and Section 9-222.1 of the
7432		-	Public Utilities Act; and subsection (g) of Section 201, and
7433		-	Section 203 of the Illinois Income Tax Act.
7434		-	(d) Except for businesses contemplated under subdivision
7435		-	(a)(3)(E), or (a)(3)(E-5), or (a)(3)(G) of this Section,
7436		-	existing Illinois businesses which apply for designation as a
7437		-	High Impact Business must provide the Department with the
7438		-	prospective plan for which 1,500 full-time retained jobs would
7439		-	be eliminated in the event that the business is not
7440		-	designated.
7441		-	(e) Except for new businesses wind power facilities
7442		-	contemplated under subdivision (a)(3)(E) or subdivision
7443		-	(a)(3)(G) of this Section, new proposed facilities which apply
7444		-	for designation as High Impact Business must provide the
7445		-	Department with proof of alternative non-Illinois sites which
7446		-	would receive the proposed investment and job creation in the
7447		-	event that the business is not designated as a High Impact
7448		-	Business.
7449		-
7450		-
7451		-	(f) Except for businesses contemplated under subdivision
7452		-	(a)(3)(E) or subdivision (a)(3)(G) of this Section, in the
7453		-	event that a business is designated a High Impact Business and
7454		-	it is later determined after reasonable notice and an
7455		-	opportunity for a hearing as provided under the Illinois
7456		-	Administrative Procedure Act, that the business would have
7457		-	placed in service in qualified property the investments and
7458		-	created or retained the requisite number of jobs without the
7459		-	benefits of the High Impact Business designation, the
7460		-	Department shall be required to immediately revoke the
7461		-	designation and notify the Director of the Department of
7462		-	Revenue who shall begin proceedings to recover all wrongfully
7463		-	exempted State taxes with interest. The business shall also be
7464		-	ineligible for all State funded Department programs for a
7465		-	period of 10 years.
7466		-	(g) The Department shall revoke a High Impact Business
7467		-	designation if the participating business fails to comply with
7468		-	the terms and conditions of the designation.
7469		-	(h) Prior to designating a business, the Department shall
7470		-	provide the members of the General Assembly and Commission on
7471		-	Government Forecasting and Accountability with a report
7472		-	setting forth the terms and conditions of the designation and
7473		-	guarantees that have been received by the Department in
7474		-	relation to the proposed business being designated.
7475		-	(i) High Impact Business construction jobs credit.
7476		-	Beginning on January 1, 2021, a High Impact Business may
7477		-
7478		-
7479		-	receive a tax credit against the tax imposed under subsections
7480		-	(a) and (b) of Section 201 of the Illinois Income Tax Act in an
7481		-	amount equal to 50% of the amount of the incremental income tax
7482		-	attributable to High Impact Business construction jobs credit
7483		-	employees employed in the course of completing a High Impact
7484		-	Business construction jobs project. However, the High Impact
7485		-	Business construction jobs credit may equal 75% of the amount
7486		-	of the incremental income tax attributable to High Impact
7487		-	Business construction jobs credit employees if the High Impact
7488		-	Business construction jobs credit project is located in an
7489		-	underserved area.
7490		-	The Department shall certify to the Department of Revenue:
7491		-	(1) the identity of taxpayers that are eligible for the High
7492		-	Impact Business construction jobs credit; and (2) the amount
7493		-	of High Impact Business construction jobs credits that are
7494		-	claimed pursuant to subsection (h-5) of Section 201 of the
7495		-	Illinois Income Tax Act in each taxable year. Any business
7496		-	entity that receives a High Impact Business construction jobs
7497		-	credit shall maintain a certified payroll pursuant to
7498		-	subsection (j) of this Section.
7499		-	As used in this subsection (i):
7500		-	"High Impact Business construction jobs credit" means an
7501		-	amount equal to 50% (or 75% if the High Impact Business
7502		-	construction project is located in an underserved area) of the
7503		-	incremental income tax attributable to High Impact Business
7504		-	construction job employees. The total aggregate amount of
7505		-
7506		-
7507		-	credits awarded under the Blue Collar Jobs Act (Article 20 of
7508		-	Public Act 101-9) shall not exceed $20,000,000 in any State
7509		-	fiscal year
7510		-	"High Impact Business construction job employee" means a
7511		-	laborer or worker who is employed by an Illinois contractor or
7512		-	subcontractor in the actual construction work on the site of a
7513		-	High Impact Business construction job project.
7514		-	"High Impact Business construction jobs project" means
7515		-	building a structure or building or making improvements of any
7516		-	kind to real property, undertaken and commissioned by a
7517		-	business that was designated as a High Impact Business by the
7518		-	Department. The term "High Impact Business construction jobs
7519		-	project" does not include the routine operation, routine
7520		-	repair, or routine maintenance of existing structures,
7521		-	buildings, or real property.
7522		-	"Incremental income tax" means the total amount withheld
7523		-	during the taxable year from the compensation of High Impact
7524		-	Business construction job employees.
7525		-	"Underserved area" means a geographic area that meets one
7526		-	or more of the following conditions:
7527		-	(1) the area has a poverty rate of at least 20%
7528		-	according to the latest American Community Survey;
7529		-	(2) 35% or more of the families with children in the
7530		-	area are living below 130% of the poverty line, according
7531		-	to the latest American Community Survey;
7532		-	(3) at least 20% of the households in the area receive
7533		-
7534		-
7535		-	assistance under the Supplemental Nutrition Assistance
7536		-	Program (SNAP); or
7537		-	(4) the area has an average unemployment rate, as
7538		-	determined by the Illinois Department of Employment
7539		-	Security, that is more than 120% of the national
7540		-	unemployment average, as determined by the U.S. Department
7541		-	of Labor, for a period of at least 2 consecutive calendar
7542		-	years preceding the date of the application.
7543		-	(j) Each contractor and subcontractor who is engaged in
7544		-	and executing a High Impact Business Construction jobs
7545		-	project, as defined under subsection (i) of this Section, for
7546		-	a business that is entitled to a credit pursuant to subsection
7547		-	(i) of this Section shall:
7548		-	(1) make and keep, for a period of 5 years from the
7549		-	date of the last payment made on or after June 5, 2019 (the
7550		-	effective date of Public Act 101-9) on a contract or
7551		-	subcontract for a High Impact Business Construction Jobs
7552		-	Project, records for all laborers and other workers
7553		-	employed by the contractor or subcontractor on the
7554		-	project; the records shall include:
7555		-	(A) the worker's name;
7556		-	(B) the worker's address;
7557		-	(C) the worker's telephone number, if available;
7558		-	(D) the worker's social security number;
7559		-	(E) the worker's classification or
7560		-	classifications;
7561		-
7562		-
7563		-	(F) the worker's gross and net wages paid in each
7564		-	pay period;
7565		-	(G) the worker's number of hours worked each day;
7566		-	(H) the worker's starting and ending times of work
7567		-	each day;
7568		-	(I) the worker's hourly wage rate;
7569		-	(J) the worker's hourly overtime wage rate;
7570		-	(K) the worker's race and ethnicity; and
7571		-	(L) the worker's gender;
7572		-	(2) no later than the 15th day of each calendar month,
7573		-	provide a certified payroll for the immediately preceding
7574		-	month to the taxpayer in charge of the High Impact
7575		-	Business construction jobs project; within 5 business days
7576		-	after receiving the certified payroll, the taxpayer shall
7577		-	file the certified payroll with the Department of Labor
7578		-	and the Department of Commerce and Economic Opportunity; a
7579		-	certified payroll must be filed for only those calendar
7580		-	months during which construction on a High Impact Business
7581		-	construction jobs project has occurred; the certified
7582		-	payroll shall consist of a complete copy of the records
7583		-	identified in paragraph (1) of this subsection (j), but
7584		-	may exclude the starting and ending times of work each
7585		-	day; the certified payroll shall be accompanied by a
7586		-	statement signed by the contractor or subcontractor or an
7587		-	officer, employee, or agent of the contractor or
7588		-	subcontractor which avers that:
7589		-
7590		-
7591		-	(A) he or she has examined the certified payroll
7592		-	records required to be submitted by the Act and such
7593		-	records are true and accurate; and
7594		-	(B) the contractor or subcontractor is aware that
7595		-	filing a certified payroll that he or she knows to be
7596		-	false is a Class A misdemeanor.
7597		-	A general contractor is not prohibited from relying on a
7598		-	certified payroll of a lower-tier subcontractor, provided the
7599		-	general contractor does not knowingly rely upon a
7600		-	subcontractor's false certification.
7601		-	Any contractor or subcontractor subject to this
7602		-	subsection, and any officer, employee, or agent of such
7603		-	contractor or subcontractor whose duty as an officer,
7604		-	employee, or agent it is to file a certified payroll under this
7605		-	subsection, who willfully fails to file such a certified
7606		-	payroll on or before the date such certified payroll is
7607		-	required by this paragraph to be filed and any person who
7608		-	willfully files a false certified payroll that is false as to
7609		-	any material fact is in violation of this Act and guilty of a
7610		-	Class A misdemeanor.
7611		-	The taxpayer in charge of the project shall keep the
7612		-	records submitted in accordance with this subsection on or
7613		-	after June 5, 2019 (the effective date of Public Act 101-9) for
7614		-	a period of 5 years from the date of the last payment for work
7615		-	on a contract or subcontract for the High Impact Business
7616		-	construction jobs project.
7617		-
7618		-
7619		-	The records submitted in accordance with this subsection
7620		-	shall be considered public records, except an employee's
7621		-	address, telephone number, and social security number, and
7622		-	made available in accordance with the Freedom of Information
7623		-	Act. The Department of Labor shall share the information with
7624		-	the Department in order to comply with the awarding of a High
7625		-	Impact Business construction jobs credit. A contractor,
7626		-	subcontractor, or public body may retain records required
7627		-	under this Section in paper or electronic format.
7628		-	(k) Upon 7 business days' notice, each contractor and
7629		-	subcontractor shall make available for inspection and copying
7630		-	at a location within this State during reasonable hours, the
7631		-	records identified in this subsection (j) to the taxpayer in
7632		-	charge of the High Impact Business construction jobs project,
7633		-	its officers and agents, the Director of the Department of
7634		-	Labor and his or her deputies and agents, and to federal,
7635		-	State, or local law enforcement agencies and prosecutors.
7636		-	(l) The changes made to this Section by this amendatory
7637		-	Act of the 102nd General Assembly, other than the changes in
7638		-	subsection (a), apply to high impact businesses that submit
7639		-	applications on or after the effective date of this amendatory
7640		-	Act of the 102nd General Assembly.
7641		-	(Source: P.A. 101-9, eff. 6-5-19; 102-108, eff. 1-1-22;
7642		-	102-558, eff. 8-20-21; 102-605, eff. 8-27-21; 102-662, eff.
7643		-	9-15-21; 102-673, eff. 11-30-21; 102-813, eff. 5-13-22;
7644		-	102-1125, eff. 2-3-23.)
7645		-
7646		-
7647		-	Section 45-10. The Economic Development for a Growing
7648		-	Economy Tax Credit Act is amended by changing Sections 5-5 and
7649		-	5-15 as follows:
7650		-	(35 ILCS 10/5-5)
7651		-	Sec. 5-5. Definitions. As used in this Act:
7652		-	"Agreement" means the Agreement between a Taxpayer and the
7653		-	Department under the provisions of Section 5-50 of this Act.
7654		-	"Applicant" means a Taxpayer that is operating a business
7655		-	located or that the Taxpayer plans to locate within the State
7656		-	of Illinois and that is engaged in interstate or intrastate
7657		-	commerce for the purpose of manufacturing, processing,
7658		-	assembling, warehousing, or distributing products, conducting
7659		-	research and development, providing tourism services, or
7660		-	providing services in interstate commerce, office industries,
7661		-	or agricultural processing, but excluding retail, retail food,
7662		-	health, or professional services. "Applicant" does not include
7663		-	a Taxpayer who closes or substantially reduces an operation at
7664		-	one location in the State and relocates substantially the same
7665		-	operation to another location in the State. This does not
7666		-	prohibit a Taxpayer from expanding its operations at another
7667		-	location in the State, provided that existing operations of a
7668		-	similar nature located within the State are not closed or
7669		-	substantially reduced. This also does not prohibit a Taxpayer
7670		-	from moving its operations from one location in the State to
7671		-
7672		-
7673		-	another location in the State for the purpose of expanding the
7674		-	operation provided that the Department determines that
7675		-	expansion cannot reasonably be accommodated within the
7676		-	municipality in which the business is located, or in the case
7677		-	of a business located in an incorporated area of the county,
7678		-	within the county in which the business is located, after
7679		-	conferring with the chief elected official of the municipality
7680		-	or county and taking into consideration any evidence offered
7681		-	by the municipality or county regarding the ability to
7682		-	accommodate expansion within the municipality or county.
7683		-	"Credit" means the amount agreed to between the Department
7684		-	and Applicant under this Act, but not to exceed the lesser of:
7685		-	(1) the sum of (i) 50% of the Incremental Income Tax
7686		-	attributable to New Employees at the Applicant's project and
7687		-	(ii) 10% of the training costs of New Employees; or (2) 100% of
7688		-	the Incremental Income Tax attributable to New Employees at
7689		-	the Applicant's project. However, if the project is located in
7690		-	an underserved area, then the amount of the Credit may not
7691		-	exceed the lesser of: (1) the sum of (i) 75% of the Incremental
7692		-	Income Tax attributable to New Employees at the Applicant's
7693		-	project and (ii) 10% of the training costs of New Employees; or
7694		-	(2) 100% of the Incremental Income Tax attributable to New
7695		-	Employees at the Applicant's project. If the project is not
7696		-	located in an underserved area and the Applicant agrees to
7697		-	hire the required number of New Employees, then the maximum
7698		-	amount of the Credit for that Applicant may be increased by an
7699		-
7700		-
7701		-	amount not to exceed 25% of the Incremental Income Tax
7702		-	attributable to retained employees at the Applicant's project.
7703		-	If the project is located in an underserved area and the
7704		-	Applicant agrees to hire the required number of New Employees,
7705		-	then the maximum amount of the credit for that Applicant may be
7706		-	increased by an amount not to exceed 50% of the Incremental
7707		-	Income Tax attributable to retained employees at the
7708		-	Applicant's project.
7709		-	"Department" means the Department of Commerce and Economic
7710		-	Opportunity.
7711		-	"Director" means the Director of Commerce and Economic
7712		-	Opportunity.
7713		-	"Full-time Employee" means an individual who is employed
7714		-	for consideration for at least 35 hours each week or who
7715		-	renders any other standard of service generally accepted by
7716		-	industry custom or practice as full-time employment. An
7717		-	individual for whom a W-2 is issued by a Professional Employer
7718		-	Organization (PEO) is a full-time employee if employed in the
7719		-	service of the Applicant for consideration for at least 35
7720		-	hours each week or who renders any other standard of service
7721		-	generally accepted by industry custom or practice as full-time
7722		-	employment to Applicant.
7723		-	"Incremental Income Tax" means the total amount withheld
7724		-	during the taxable year from the compensation of New Employees
7725		-	and, if applicable, retained employees under Article 7 of the
7726		-	Illinois Income Tax Act arising from employment at a project
7727		-
7728		-
7729		-	that is the subject of an Agreement.
7730		-	"New Construction EDGE Agreement" means the Agreement
7731		-	between a Taxpayer and the Department under the provisions of
7732		-	Section 5-51 of this Act.
7733		-	"New Construction EDGE Credit" means an amount agreed to
7734		-	between the Department and the Applicant under this Act as
7735		-	part of a New Construction EDGE Agreement that does not exceed
7736		-	50% of the Incremental Income Tax attributable to New
7737		-	Construction EDGE Employees at the Applicant's project;
7738		-	however, if the New Construction EDGE Project is located in an
7739		-	underserved area, then the amount of the New Construction EDGE
7740		-	Credit may not exceed 75% of the Incremental Income Tax
7741		-	attributable to New Construction EDGE Employees at the
7742		-	Applicant's New Construction EDGE Project.
7743		-	"New Construction EDGE Employee" means a laborer or worker
7744		-	who is employed by an Illinois contractor or subcontractor in
7745		-	the actual construction work on the site of a New Construction
7746		-	EDGE Project, pursuant to a New Construction EDGE Agreement.
7747		-	"New Construction EDGE Incremental Income Tax" means the
7748		-	total amount withheld during the taxable year from the
7749		-	compensation of New Construction EDGE Employees.
7750		-	"New Construction EDGE Project" means the building of a
7751		-	Taxpayer's structure or building, or making improvements of
7752		-	any kind to real property. "New Construction EDGE Project"
7753		-	does not include the routine operation, routine repair, or
7754		-	routine maintenance of existing structures, buildings, or real
7755		-
7756		-
7757		-	property.
7758		-	"New Employee" means:
7759		-	(a) A Full-time Employee first employed by a Taxpayer
7760		-	in the project that is the subject of an Agreement and who
7761		-	is hired after the Taxpayer enters into the tax credit
7762		-	Agreement.
7763		-	(b) The term "New Employee" does not include:
7764		-	(1) an employee of the Taxpayer who performs a job
7765		-	that was previously performed by another employee, if
7766		-	that job existed for at least 6 months before hiring
7767		-	the employee;
7768		-	(2) an employee of the Taxpayer who was previously
7769		-	employed in Illinois by a Related Member of the
7770		-	Taxpayer and whose employment was shifted to the
7771		-	Taxpayer after the Taxpayer entered into the tax
7772		-	credit Agreement; or
7773		-	(3) a child, grandchild, parent, or spouse, other
7774		-	than a spouse who is legally separated from the
7775		-	individual, of any individual who has a direct or an
7776		-	indirect ownership interest of at least 5% in the
7777		-	profits, capital, or value of the Taxpayer.
7778		-	(c) Notwithstanding paragraph (1) of subsection (b),
7779		-	an employee may be considered a New Employee under the
7780		-	Agreement if the employee performs a job that was
7781		-	previously performed by an employee who was:
7782		-	(1) treated under the Agreement as a New Employee;
7783		-
7784		-
7785		-	and
7786		-	(2) promoted by the Taxpayer to another job.
7787		-	(d) Notwithstanding subsection (a), the Department may
7788		-	award Credit to an Applicant with respect to an employee
7789		-	hired prior to the date of the Agreement if:
7790		-	(1) the Applicant is in receipt of a letter from
7791		-	the Department stating an intent to enter into a
7792		-	credit Agreement;
7793		-	(2) the letter described in paragraph (1) is
7794		-	issued by the Department not later than 15 days after
7795		-	the effective date of this Act; and
7796		-	(3) the employee was hired after the date the
7797		-	letter described in paragraph (1) was issued.
7798		-	"Noncompliance Date" means, in the case of a Taxpayer that
7799		-	is not complying with the requirements of the Agreement or the
7800		-	provisions of this Act, the day following the last date upon
7801		-	which the Taxpayer was in compliance with the requirements of
7802		-	the Agreement and the provisions of this Act, as determined by
7803		-	the Director, pursuant to Section 5-65.
7804		-	"Pass Through Entity" means an entity that is exempt from
7805		-	the tax under subsection (b) or (c) of Section 205 of the
7806		-	Illinois Income Tax Act.
7807		-	"Professional Employer Organization" (PEO) means an
7808		-	employee leasing company, as defined in Section 206.1(A)(2) of
7809		-	the Illinois Unemployment Insurance Act.
7810		-	"Related Member" means a person that, with respect to the
7811		-
7812		-
7813		-	Taxpayer during any portion of the taxable year, is any one of
7814		-	the following:
7815		-	(1) An individual stockholder, if the stockholder and
7816		-	the members of the stockholder's family (as defined in
7817		-	Section 318 of the Internal Revenue Code) own directly,
7818		-	indirectly, beneficially, or constructively, in the
7819		-	aggregate, at least 50% of the value of the Taxpayer's
7820		-	outstanding stock.
7821		-	(2) A partnership, estate, or trust and any partner or
7822		-	beneficiary, if the partnership, estate, or trust, and its
7823		-	partners or beneficiaries own directly, indirectly,
7824		-	beneficially, or constructively, in the aggregate, at
7825		-	least 50% of the profits, capital, stock, or value of the
7826		-	Taxpayer.
7827		-	(3) A corporation, and any party related to the
7828		-	corporation in a manner that would require an attribution
7829		-	of stock from the corporation to the party or from the
7830		-	party to the corporation under the attribution rules of
7831		-	Section 318 of the Internal Revenue Code, if the Taxpayer
7832		-	owns directly, indirectly, beneficially, or constructively
7833		-	at least 50% of the value of the corporation's outstanding
7834		-	stock.
7835		-	(4) A corporation and any party related to that
7836		-	corporation in a manner that would require an attribution
7837		-	of stock from the corporation to the party or from the
7838		-	party to the corporation under the attribution rules of
7839		-
7840		-
7841		-	Section 318 of the Internal Revenue Code, if the
7842		-	corporation and all such related parties own in the
7843		-	aggregate at least 50% of the profits, capital, stock, or
7844		-	value of the Taxpayer.
7845		-	(5) A person to or from whom there is attribution of
7846		-	stock ownership in accordance with Section 1563(e) of the
7847		-	Internal Revenue Code, except, for purposes of determining
7848		-	whether a person is a Related Member under this paragraph,
7849		-	20% shall be substituted for 5% wherever 5% appears in
7850		-	Section 1563(e) of the Internal Revenue Code.
7851		-	"Startup taxpayer" means, for Agreements that are executed
7852		-	before the effective date of the changes made to this Section
7853		-	by this amendatory Act of the 103rd General Assembly, a
7854		-	corporation, partnership, or other entity incorporated or
7855		-	organized no more than 5 years before the filing of an
7856		-	application for an Agreement that has never had any Illinois
7857		-	income tax liability, excluding any Illinois income tax
7858		-	liability of a Related Member which shall not be attributed to
7859		-	the startup taxpayer. "Startup taxpayer" means, for Agreements
7860		-	that are executed on or after the effective date of this
7861		-	amendatory Act of the 103rd General Assembly, a corporation,
7862		-	partnership, or other entity that is incorporated or organized
7863		-	no more than 10 years before the filing of an application for
7864		-	an Agreement and that has never had any Illinois income tax
7865		-	liability. For the purpose of determining whether the taxpayer
7866		-	has had any Illinois income tax liability, the Illinois income
7867		-
7868		-
7869		-	tax liability of a Related Member shall not be attributed to
7870		-	the startup taxpayer.
7871		-	"Taxpayer" means an individual, corporation, partnership,
7872		-	or other entity that has any Illinois Income Tax liability.
7873		-	Until July 1, 2022, "underserved area" means a geographic
7874		-	area that meets one or more of the following conditions:
7875		-	(1) the area has a poverty rate of at least 20%
7876		-	according to the latest federal decennial census;
7877		-	(2) 75% or more of the children in the area
7878		-	participate in the federal free lunch program according to
7879		-	reported statistics from the State Board of Education;
7880		-	(3) at least 20% of the households in the area receive
7881		-	assistance under the Supplemental Nutrition Assistance
7882		-	Program (SNAP); or
7883		-	(4) the area has an average unemployment rate, as
7884		-	determined by the Illinois Department of Employment
7885		-	Security, that is more than 120% of the national
7886		-	unemployment average, as determined by the U.S. Department
7887		-	of Labor, for a period of at least 2 consecutive calendar
7888		-	years preceding the date of the application.
7889		-	On and after July 1, 2022, "underserved area" means a
7890		-	geographic area that meets one or more of the following
7891		-	conditions:
7892		-	(1) the area has a poverty rate of at least 20%
7893		-	according to the latest American Community Survey;
7894		-	(2) 35% or more of the families with children in the
7895		-
7896		-
7897		-	area are living below 130% of the poverty line, according
7898		-	to the latest American Community Survey;
7899		-	(3) at least 20% of the households in the area receive
7900		-	assistance under the Supplemental Nutrition Assistance
7901		-	Program (SNAP); or
7902		-	(4) the area has an average unemployment rate, as
7903		-	determined by the Illinois Department of Employment
7904		-	Security, that is more than 120% of the national
7905		-	unemployment average, as determined by the U.S. Department
7906		-	of Labor, for a period of at least 2 consecutive calendar
7907		-	years preceding the date of the application.
7908		-	(Source: P.A. 101-9, eff. 6-5-19; 102-330, eff. 1-1-22;
7909		-	102-700, eff. 4-19-22; 102-1125, eff. 2-3-23.)
7910		-	(35 ILCS 10/5-15)
7911		-	Sec. 5-15. Tax Credit Awards. Subject to the conditions
7912		-	set forth in this Act, a Taxpayer is entitled to a Credit
7913		-	against or, as described in subsection (g) of this Section, a
7914		-	payment towards taxes imposed pursuant to subsections (a) and
7915		-	(b) of Section 201 of the Illinois Income Tax Act that may be
7916		-	imposed on the Taxpayer for a taxable year beginning on or
7917		-	after January 1, 1999, if the Taxpayer is awarded a Credit by
7918		-	the Department under this Act for that taxable year.
7919		-	(a) The Department shall make Credit awards under this Act
7920		-	to foster job creation and retention in Illinois.
7921		-	(b) A person that proposes a project to create new jobs in
7922		-
7923		-
7924		-	Illinois must enter into an Agreement with the Department for
7925		-	the Credit under this Act.
7926		-	(c) The Credit shall be claimed for the taxable years
7927		-	specified in the Agreement.
7928		-	(d) The Credit shall not exceed the Incremental Income Tax
7929		-	attributable to the project that is the subject of the
7930		-	Agreement.
7931		-	(e) Nothing herein shall prohibit a Tax Credit Award to an
7932		-	Applicant that uses a PEO if all other award criteria are
7933		-	satisfied.
7934		-	(f) In lieu of the Credit allowed under this Act against
7935		-	the taxes imposed pursuant to subsections (a) and (b) of
7936		-	Section 201 of the Illinois Income Tax Act for any taxable year
7937		-	ending on or after December 31, 2009, for Taxpayers that
7938		-	entered into Agreements prior to January 1, 2015 and otherwise
7939		-	meet the criteria set forth in this subsection (f), the
7940		-	Taxpayer may elect to claim the Credit against its obligation
7941		-	to pay over withholding under Section 704A of the Illinois
7942		-	Income Tax Act.
7943		-	(1) The election under this subsection (f) may be made
7944		-	only by a Taxpayer that (i) is primarily engaged in one of
7945		-	the following business activities: water purification and
7946		-	treatment, motor vehicle metal stamping, automobile
7947		-	manufacturing, automobile and light duty motor vehicle
7948		-	manufacturing, motor vehicle manufacturing, light truck
7949		-	and utility vehicle manufacturing, heavy duty truck
7950		-
7951		-
7952		-	manufacturing, motor vehicle body manufacturing, cable
7953		-	television infrastructure design or manufacturing, or
7954		-	wireless telecommunication or computing terminal device
7955		-	design or manufacturing for use on public networks and
7956		-	(ii) meets the following criteria:
7957		-	(A) the Taxpayer (i) had an Illinois net loss or an
7958		-	Illinois net loss deduction under Section 207 of the
7959		-	Illinois Income Tax Act for the taxable year in which
7960		-	the Credit is awarded, (ii) employed a minimum of
7961		-	1,000 full-time employees in this State during the
7962		-	taxable year in which the Credit is awarded, (iii) has
7963		-	an Agreement under this Act on December 14, 2009 (the
7964		-	effective date of Public Act 96-834), and (iv) is in
7965		-	compliance with all provisions of that Agreement;
7966		-	(B) the Taxpayer (i) had an Illinois net loss or an
7967		-	Illinois net loss deduction under Section 207 of the
7968		-	Illinois Income Tax Act for the taxable year in which
7969		-	the Credit is awarded, (ii) employed a minimum of
7970		-	1,000 full-time employees in this State during the
7971		-	taxable year in which the Credit is awarded, and (iii)
7972		-	has applied for an Agreement within 365 days after
7973		-	December 14, 2009 (the effective date of Public Act
7974		-	96-834);
7975		-	(C) the Taxpayer (i) had an Illinois net operating
7976		-	loss carryforward under Section 207 of the Illinois
7977		-	Income Tax Act in a taxable year ending during
7978		-
7979		-
7980		-	calendar year 2008, (ii) has applied for an Agreement
7981		-	within 150 days after the effective date of this
7982		-	amendatory Act of the 96th General Assembly, (iii)
7983		-	creates at least 400 new jobs in Illinois, (iv)
7984		-	retains at least 2,000 jobs in Illinois that would
7985		-	have been at risk of relocation out of Illinois over a
7986		-	10-year period, and (v) makes a capital investment of
7987		-	at least $75,000,000;
7988		-	(D) the Taxpayer (i) had an Illinois net operating
7989		-	loss carryforward under Section 207 of the Illinois
7990		-	Income Tax Act in a taxable year ending during
7991		-	calendar year 2009, (ii) has applied for an Agreement
7992		-	within 150 days after the effective date of this
7993		-	amendatory Act of the 96th General Assembly, (iii)
7994		-	creates at least 150 new jobs, (iv) retains at least
7995		-	1,000 jobs in Illinois that would have been at risk of
7996		-	relocation out of Illinois over a 10-year period, and
7997		-	(v) makes a capital investment of at least
7998		-	$57,000,000; or
7999		-	(E) the Taxpayer (i) employed at least 2,500
8000		-	full-time employees in the State during the year in
8001		-	which the Credit is awarded, (ii) commits to make at
8002		-	least $500,000,000 in combined capital improvements
8003		-	and project costs under the Agreement, (iii) applies
8004		-	for an Agreement between January 1, 2011 and June 30,
8005		-	2011, (iv) executes an Agreement for the Credit during
8006		-
8007		-
8008		-	calendar year 2011, and (v) was incorporated no more
8009		-	than 5 years before the filing of an application for an
8010		-	Agreement.
8011		-	(1.5) The election under this subsection (f) may also
8012		-	be made by a Taxpayer for any Credit awarded pursuant to an
8013		-	agreement that was executed between January 1, 2011 and
8014		-	June 30, 2011, if the Taxpayer (i) is primarily engaged in
8015		-	the manufacture of inner tubes or tires, or both, from
8016		-	natural and synthetic rubber, (ii) employs a minimum of
8017		-	2,400 full-time employees in Illinois at the time of
8018		-	application, (iii) creates at least 350 full-time jobs and
8019		-	retains at least 250 full-time jobs in Illinois that would
8020		-	have been at risk of being created or retained outside of
8021		-	Illinois, and (iv) makes a capital investment of at least
8022		-	$200,000,000 at the project location.
8023		-	(1.6) The election under this subsection (f) may also
8024		-	be made by a Taxpayer for any Credit awarded pursuant to an
8025		-	agreement that was executed within 150 days after the
8026		-	effective date of this amendatory Act of the 97th General
8027		-	Assembly, if the Taxpayer (i) is primarily engaged in the
8028		-	operation of a discount department store, (ii) maintains
8029		-	its corporate headquarters in Illinois, (iii) employs a
8030		-	minimum of 4,250 full-time employees at its corporate
8031		-	headquarters in Illinois at the time of application, (iv)
8032		-	retains at least 4,250 full-time jobs in Illinois that
8033		-	would have been at risk of being relocated outside of
8034		-
8035		-
8036		-	Illinois, (v) had a minimum of $40,000,000,000 in total
8037		-	revenue in 2010, and (vi) makes a capital investment of at
8038		-	least $300,000,000 at the project location.
8039		-	(1.7) Notwithstanding any other provision of law, the
8040		-	election under this subsection (f) may also be made by a
8041		-	Taxpayer for any Credit awarded pursuant to an agreement
8042		-	that was executed or applied for on or after July 1, 2011
8043		-	and on or before March 31, 2012, if the Taxpayer is
8044		-	primarily engaged in the manufacture of original and
8045		-	aftermarket filtration parts and products for automobiles,
8046		-	motor vehicles, light duty motor vehicles, light trucks
8047		-	and utility vehicles, and heavy duty trucks, (ii) employs
8048		-	a minimum of 1,000 full-time employees in Illinois at the
8049		-	time of application, (iii) creates at least 250 full-time
8050		-	jobs in Illinois, (iv) relocates its corporate
8051		-	headquarters to Illinois from another state, and (v) makes
8052		-	a capital investment of at least $4,000,000 at the project
8053		-	location.
8054		-	(1.8) Notwithstanding any other provision of law, the
8055		-	election under this subsection (f) may also be made by a
8056		-	startup taxpayer for any Credit awarded pursuant to an
8057		-	Agreement that was executed or applied for on or after the
8058		-	effective date of this amendatory Act of the 102nd General
8059		-	Assembly, if the startup taxpayer, without considering any
8060		-	Related Member or other investor, (i) has never had any
8061		-	Illinois income tax liability and (ii) was incorporated no
8062		-
8063		-
8064		-	more than 5 years before the filing of an application for
8065		-	an Agreement. Any such election under this paragraph (1.8)
8066		-	shall be effective unless and until such startup taxpayer
8067		-	has any Illinois income tax liability. This election under
8068		-	this paragraph (1.8) shall automatically terminate when
8069		-	the startup taxpayer has any Illinois income tax liability
8070		-	at the end of any taxable year during the term of the
8071		-	Agreement. Thereafter, the startup taxpayer may receive a
8072		-	Credit, taking into account any benefits previously
8073		-	enjoyed or received by way of the election under this
8074		-	paragraph (1.8), so long as the startup taxpayer remains
8075		-	in compliance with the terms and conditions of the
8076		-	Agreement.
8077		-	(2) An election under this subsection shall allow the
8078		-	credit to be taken against payments otherwise due under
8079		-	Section 704A of the Illinois Income Tax Act during the
8080		-	first calendar quarter year beginning after the end of the
8081		-	taxable quarter year in which the credit is awarded under
8082		-	this Act.
8083		-	(3) The election shall be made in the form and manner
8084		-	required by the Illinois Department of Revenue and, once
8085		-	made, shall be irrevocable.
8086		-	(4) If a Taxpayer who meets the requirements of
8087		-	subparagraph (A) of paragraph (1) of this subsection (f)
8088		-	elects to claim the Credit against its withholdings as
8089		-	provided in this subsection (f), then, on and after the
8090		-
8091		-
8092		-	date of the election, the terms of the Agreement between
8093		-	the Taxpayer and the Department may not be further amended
8094		-	during the term of the Agreement.
8095		-	(g) A pass-through entity that has been awarded a credit
8096		-	under this Act, its shareholders, or its partners may treat
8097		-	some or all of the credit awarded pursuant to this Act as a tax
8098		-	payment for purposes of the Illinois Income Tax Act. The term
8099		-	"tax payment" means a payment as described in Article 6 or
8100		-	Article 8 of the Illinois Income Tax Act or a composite payment
8101		-	made by a pass-through entity on behalf of any of its
8102		-	shareholders or partners to satisfy such shareholders' or
8103		-	partners' taxes imposed pursuant to subsections (a) and (b) of
8104		-	Section 201 of the Illinois Income Tax Act. In no event shall
8105		-	the amount of the award credited pursuant to this Act exceed
8106		-	the Illinois income tax liability of the pass-through entity
8107		-	or its shareholders or partners for the taxable year.
8108		-	(Source: P.A. 102-700, eff. 4-19-22.)
8109		-	Section 45-15. The Public Utilities Act is amended by
8110		-	changing Section 9-222.1A as follows:
8111		-	(220 ILCS 5/9-222.1A)
8112		-	Sec. 9-222.1A. High impact business. Beginning on August
8113		-	1, 1998 and thereafter, a business enterprise that is
8114		-	certified as a High Impact Business by the Department of
8115		-	Commerce and Economic Opportunity (formerly Department of
8116		-
8117		-
8118		-	Commerce and Community Affairs) is exempt from the tax imposed
8119		-	by Section 2-4 of the Electricity Excise Tax Law, if the High
8120		-	Impact Business is registered to self-assess that tax, and is
8121		-	exempt from any additional charges added to the business
8122		-	enterprise's utility bills as a pass-on of State utility taxes
8123		-	under Section 9-222 of this Act, to the extent the tax or
8124		-	charges are exempted by the percentage specified by the
8125		-	Department of Commerce and Economic Opportunity for State
8126		-	utility taxes, provided the business enterprise meets the
8127		-	following criteria:
8128		-	(1) (A) it intends either (i) to make a minimum
8129		-	eligible investment of $12,000,000 that will be placed
8130		-	in service in qualified property in Illinois and is
8131		-	intended to create at least 500 full-time equivalent
8132		-	jobs at a designated location in Illinois; or (ii) to
8133		-	make a minimum eligible investment of $30,000,000 that
8134		-	will be placed in service in qualified property in
8135		-	Illinois and is intended to retain at least 1,500
8136		-	full-time equivalent jobs at a designated location in
8137		-	Illinois; or
8138		-	(B) it meets the criteria of subdivision
8139		-	(a)(3)(B), (a)(3)(C), (a)(3)(D), or (a)(3)(F), or
8140		-	(a)(3)(G) of Section 5.5 of the Illinois Enterprise
8141		-	Zone Act;
8142		-	(2) it is designated as a High Impact Business by the
8143		-	Department of Commerce and Economic Opportunity; and
8144		-
8145		-
8146		-	(3) it is certified by the Department of Commerce and
8147		-	Economic Opportunity as complying with the requirements
8148		-	specified in clauses (1) and (2) of this Section.
8149		-	The Department of Commerce and Economic Opportunity shall
8150		-	determine the period during which the exemption from the
8151		-	Electricity Excise Tax Law and the charges imposed under
8152		-	Section 9-222 are in effect and shall specify the percentage
8153		-	of the exemption from those taxes or additional charges.
8154		-	The Department of Commerce and Economic Opportunity is
8155		-	authorized to promulgate rules and regulations to carry out
8156		-	the provisions of this Section, including procedures for
8157		-	complying with the requirements specified in clauses (1) and
8158		-	(2) of this Section and procedures for applying for the
8159		-	exemptions authorized under this Section; to define the
8160		-	amounts and types of eligible investments that business
8161		-	enterprises must make in order to receive State utility tax
8162		-	exemptions or exemptions from the additional charges imposed
8163		-	under Section 9-222 and this Section; to approve such utility
8164		-	tax exemptions for business enterprises whose investments are
8165		-	not yet placed in service; and to require that business
8166		-	enterprises granted tax exemptions or exemptions from
8167		-	additional charges under Section 9-222 repay the exempted
8168		-	amount if the business enterprise fails to comply with the
8169		-	terms and conditions of the certification.
8170		-	Upon certification of the business enterprises by the
8171		-	Department of Commerce and Economic Opportunity, the
8172		-
8173		-
8174		-	Department of Commerce and Economic Opportunity shall notify
8175		-	the Department of Revenue of the certification. The Department
8176		-	of Revenue shall notify the public utilities of the exemption
8177		-	status of business enterprises from the tax or pass-on charges
8178		-	of State utility taxes. The exemption status shall take effect
8179		-	within 3 months after certification of the business
8180		-	enterprise.
8181		-	(Source: P.A. 102-1125, eff. 2-3-23.)
8182		-	ARTICLE 50. INVESTMENT PARTNERSHIPS
8183		-	Section 50-5. The Illinois Income Tax Act is amended by
8184		-	changing Sections 709.5 and 1501 as follows:
8185		-	(35 ILCS 5/709.5)
8186		-	Sec. 709.5. Withholding by partnerships, Subchapter S
8187		-	corporations, and trusts.
8188		-	(a) In general. For each taxable year ending on or after
8189		-	December 31, 2008, every partnership (other than a publicly
8190		-	traded partnership under Section 7704 of the Internal Revenue
8191		-	Code or investment partnership), Subchapter S corporation, and
8192		-	trust must withhold from each nonresident partner,
8193		-	shareholder, or beneficiary (other than a partner,
8194		-	shareholder, or beneficiary who is exempt from tax under
8195		-	Section 501(a) of the Internal Revenue Code or under Section
8196		-	205 of this Act, who is included on a composite return filed by
8197		-
8198		-
8199		-	the partnership or Subchapter S corporation for the taxable
8200		-	year under subsection (f) of Section 502 of this Act), or who
8201		-	is a retired partner, to the extent that partner's
8202		-	distributions are exempt from tax under Section 203(a)(2)(F)
8203		-	of this Act) an amount equal to the sum of (i) the share of
8204		-	business income of the partnership, Subchapter S corporation,
8205		-	or trust apportionable to Illinois plus (ii) for taxable years
8206		-	ending on or after December 31, 2014, the share of nonbusiness
8207		-	income of the partnership, Subchapter S corporation, or trust
8208		-	allocated to Illinois under Section 303 of this Act (other
8209		-	than an amount allocated to the commercial domicile of the
8210		-	taxpayer under Section 303 of this Act) that is distributable
8211		-	to that partner, shareholder, or beneficiary under Sections
8212		-	702 and 704 and Subchapter S of the Internal Revenue Code,
8213		-	whether or not distributed, (iii) multiplied by the applicable
8214		-	rates of tax for that partner, shareholder, or beneficiary
8215		-	under subsections (a) through (d) of Section 201 of this Act,
8216		-	and (iv) net of the share of any credit under Article 2 of this
8217		-	Act that is distributable by the partnership, Subchapter S
8218		-	corporation, or trust and allowable against the tax liability
8219		-	of that partner, shareholder, or beneficiary for a taxable
8220		-	year ending on or after December 31, 2014.
8221		-	(b) Credit for taxes withheld. Any amount withheld under
8222		-	subsection (a) of this Section and paid to the Department
8223		-	shall be treated as a payment of the estimated tax liability or
8224		-	of the liability for withholding under this Section of the
8225		-
8226		-
8227		-	partner, shareholder, or beneficiary to whom the income is
8228		-	distributable for the taxable year in which that person
8229		-	incurred a liability under this Act with respect to that
8230		-	income. The Department shall adopt rules pursuant to which a
8231		-	partner, shareholder, or beneficiary may claim a credit
8232		-	against its obligation for withholding under this Section for
8233		-	amounts withheld under this Section with respect to income
8234		-	distributable to it by a partnership, Subchapter S
8235		-	corporation, or trust and allowing its partners, shareholders,
8236		-	or beneficiaries to claim a credit under this subsection (b)
8237		-	for those withheld amounts.
8238		-	(c) Exemption from withholding.
8239		-	(1) A partnership, Subchapter S corporation, or trust
8240		-	shall not be required to withhold tax under subsection (a)
8241		-	of this Section with respect to any nonresident partner,
8242		-	shareholder, or beneficiary (other than an individual)
8243		-	from whom the partnership, S corporation, or trust has
8244		-	received a certificate, completed in the form and manner
8245		-	prescribed by the Department, stating that such
8246		-	nonresident partner, shareholder, or beneficiary shall:
8247		-	(A) file all returns that the partner,
8248		-	shareholder, or beneficiary is required to file under
8249		-	Section 502 of this Act and make timely payment of all
8250		-	taxes imposed under Section 201 of this Act or under
8251		-	this Section on the partner, shareholder, or
8252		-	beneficiary with respect to income of the partnership,
8253		-
8254		-
8255		-	S corporation, or trust; and
8256		-	(B) be subject to personal jurisdiction in this
8257		-	State for purposes of the collection of income taxes,
8258		-	together with related interest and penalties, imposed
8259		-	on the partner, shareholder, or beneficiary with
8260		-	respect to the income of the partnership, S
8261		-	corporation, or trust.
8262		-	(2) The Department may revoke the exemption provided
8263		-	by this subsection (c) at any time that it determines that
8264		-	the nonresident partner, shareholder, or beneficiary is
8265		-	not abiding by the terms of the certificate. The
8266		-	Department shall notify the partnership, S corporation, or
8267		-	trust that it has revoked a certificate by notice left at
8268		-	the usual place of business of the partnership, S
8269		-	corporation, or trust or by mail to the last known address
8270		-	of the partnership, S corporation, or trust.
8271		-	(3) A partnership, S corporation, or trust that
8272		-	receives a certificate under this subsection (c) properly
8273		-	completed by a nonresident partner, shareholder, or
8274		-	beneficiary shall not be required to withhold any amount
8275		-	from that partner, shareholder, or beneficiary, the
8276		-	payment of which would be due under Section 711(a-5) of
8277		-	this Act after the receipt of the certificate and no
8278		-	earlier than 60 days after the Department has notified the
8279		-	partnership, S corporation, or trust that the certificate
8280		-	has been revoked.
8281		-
8282		-
8283		-	(4) Certificates received by a partnership, S
8284		-	corporation, or trust under this subsection (c) must be
8285		-	retained by the partnership, S corporation, or trust and a
8286		-	record of such certificates must be provided to the
8287		-	Department, in a format in which the record is available
8288		-	for review by the Department, upon request by the
8289		-	Department. The Department may, by rule, require the
8290		-	record of certificates to be maintained and provided to
8291		-	the Department electronically.
8292		-	(d) For taxable years ending on and after December 31,
8293		-	2023, every investment partnership, as defined in Section 1501
8294		-	of this Act, shall withhold from each nonresident partner
8295		-	(other than a partner who is exempt from tax under Section
8296		-	501(a) of the Internal Revenue Code or under Section 205 of
8297		-	this Act, or who is a retired partner, to the extent that
8298		-	partner's distributions are exempt from tax under Section
8299		-	203(a)(2)(F) of this Act) an amount calculated as follows:
8300		-	(1) the sum of (i) the share of income that, but for
8301		-	the provisions of subsection (c-5) of Section 305 of this
8302		-	Act, would be apportioned to Illinois by the investment
8303		-	partnership under subsection (a) of Section 305 of this
8304		-	Act and (ii) the share of nonbusiness income that, but for
8305		-	the provisions of subsection (c-5) of Section 305 of this
8306		-	Act, would be allocated to Illinois by the investment
8307		-	partnership under subsection (b) of Sections 305 and
8308		-	Section 303 of this Act (other than an amount allocated to
8309		-
8310		-
8311		-	the commercial domicile of the taxpayer under Section 303
8312		-	of this Act) that is distributable to that partner under
8313		-	Sections 702 and 704 of the Internal Revenue Code, whether
8314		-	or not distributed; multiplied by
8315		-	(2) the applicable rates of tax for that partner under
8316		-	subsections (a) through (d) of Section 201 of this Act
8317		-	(except that, if the partner is a partnership or
8318		-	subchapter S corporation, the rate shall be equal to the
8319		-	rate imposed on individuals under subsection (b) of
8320		-	Section 201 of this Act); and
8321		-	(3) net of the investment partnership's distributive
8322		-	share of any credit under Article 2 of this Act that is
8323		-	distributable by the partnership and first allowable
8324		-	against the tax liability of that partner for a taxable
8325		-	year ending on or after December 31, 2023.
8326		-	Except to the extent that the income of the investment
8327		-	partnership is business income in the hands of the partner
8328		-	under subsection (c-5) of Section 305 of this Act, no credit
8329		-	for taxes withheld shall be allowed under subsection (b) of
8330		-	this Section for amounts withheld under this subsection.
8331		-	The provisions of subsection (c) of this Section, allowing
8332		-	for exemption from withholding, shall not apply for purposes
8333		-	of this subsection.
8334		-	(Source: P.A. 100-201, eff. 8-18-17.)
8335		-	(35 ILCS 5/1501) (from Ch. 120, par. 15-1501)
8336		-
8337		-
8338		-	Sec. 1501. Definitions.
8339		-	(a) In general. When used in this Act, where not otherwise
8340		-	distinctly expressed or manifestly incompatible with the
8341		-	intent thereof:
8342		-	(1) Business income. The term "business income" means
8343		-	all income that may be treated as apportionable business
8344		-	income under the Constitution of the United States.
8345		-	Business income is net of the deductions allocable
8346		-	thereto. Such term does not include compensation or the
8347		-	deductions allocable thereto. For each taxable year
8348		-	beginning on or after January 1, 2003, a taxpayer may
8349		-	elect to treat all income other than compensation as
8350		-	business income. This election shall be made in accordance
8351		-	with rules adopted by the Department and, once made, shall
8352		-	be irrevocable.
8353		-	(1.5) Captive real estate investment trust:
8354		-	(A) The term "captive real estate investment
8355		-	trust" means a corporation, trust, or association:
8356		-	(i) that is considered a real estate
8357		-	investment trust for the taxable year under
8358		-	Section 856 of the Internal Revenue Code;
8359		-	(ii) the certificates of beneficial interest
8360		-	or shares of which are not regularly traded on an
8361		-	established securities market; and
8362		-	(iii) of which more than 50% of the voting
8363		-	power or value of the beneficial interest or
8364		-
8365		-
8366		-	shares, at any time during the last half of the
8367		-	taxable year, is owned or controlled, directly,
8368		-	indirectly, or constructively, by a single
8369		-	corporation.
8370		-	(B) The term "captive real estate investment
8371		-	trust" does not include:
8372		-	(i) a real estate investment trust of which
8373		-	more than 50% of the voting power or value of the
8374		-	beneficial interest or shares is owned or
8375		-	controlled, directly, indirectly, or
8376		-	constructively, by:
8377		-	(a) a real estate investment trust, other
8378		-	than a captive real estate investment trust;
8379		-	(b) a person who is exempt from taxation
8380		-	under Section 501 of the Internal Revenue
8381		-	Code, and who is not required to treat income
8382		-	received from the real estate investment trust
8383		-	as unrelated business taxable income under
8384		-	Section 512 of the Internal Revenue Code;
8385		-	(c) a listed Australian property trust, if
8386		-	no more than 50% of the voting power or value
8387		-	of the beneficial interest or shares of that
8388		-	trust, at any time during the last half of the
8389		-	taxable year, is owned or controlled, directly
8390		-	or indirectly, by a single person;
8391		-	(d) an entity organized as a trust,
8392		-
8393		-
8394		-	provided a listed Australian property trust
8395		-	described in subparagraph (c) owns or
8396		-	controls, directly or indirectly, or
8397		-	constructively, 75% or more of the voting
8398		-	power or value of the beneficial interests or
8399		-	shares of such entity; or
8400		-	(e) an entity that is organized outside of
8401		-	the laws of the United States and that
8402		-	satisfies all of the following criteria:
8403		-	(1) at least 75% of the entity's total
8404		-	asset value at the close of its taxable
8405		-	year is represented by real estate assets
8406		-	(as defined in Section 856(c)(5)(B) of the
8407		-	Internal Revenue Code, thereby including
8408		-	shares or certificates of beneficial
8409		-	interest in any real estate investment
8410		-	trust), cash and cash equivalents, and
8411		-	U.S. Government securities;
8412		-	(2) the entity is not subject to tax
8413		-	on amounts that are distributed to its
8414		-	beneficial owners or is exempt from
8415		-	entity-level taxation;
8416		-	(3) the entity distributes at least
8417		-	85% of its taxable income (as computed in
8418		-	the jurisdiction in which it is organized)
8419		-	to the holders of its shares or
8420		-
8421		-
8422		-	certificates of beneficial interest on an
8423		-	annual basis;
8424		-	(4) either (i) the shares or
8425		-	beneficial interests of the entity are
8426		-	regularly traded on an established
8427		-	securities market or (ii) not more than
8428		-	10% of the voting power or value in the
8429		-	entity is held, directly, indirectly, or
8430		-	constructively, by a single entity or
8431		-	individual; and
8432		-	(5) the entity is organized in a
8433		-	country that has entered into a tax treaty
8434		-	with the United States; or
8435		-	(ii) during its first taxable year for which
8436		-	it elects to be treated as a real estate
8437		-	investment trust under Section 856(c)(1) of the
8438		-	Internal Revenue Code, a real estate investment
8439		-	trust the certificates of beneficial interest or
8440		-	shares of which are not regularly traded on an
8441		-	established securities market, but only if the
8442		-	certificates of beneficial interest or shares of
8443		-	the real estate investment trust are regularly
8444		-	traded on an established securities market prior
8445		-	to the earlier of the due date (including
8446		-	extensions) for filing its return under this Act
8447		-	for that first taxable year or the date it
8448		-
8449		-
8450		-	actually files that return.
8451		-	(C) For the purposes of this subsection (1.5), the
8452		-	constructive ownership rules prescribed under Section
8453		-	318(a) of the Internal Revenue Code, as modified by
8454		-	Section 856(d)(5) of the Internal Revenue Code, apply
8455		-	in determining the ownership of stock, assets, or net
8456		-	profits of any person.
8457		-	(D) For the purposes of this item (1.5), for
8458		-	taxable years ending on or after August 16, 2007, the
8459		-	voting power or value of the beneficial interest or
8460		-	shares of a real estate investment trust does not
8461		-	include any voting power or value of beneficial
8462		-	interest or shares in a real estate investment trust
8463		-	held directly or indirectly in a segregated asset
8464		-	account by a life insurance company (as described in
8465		-	Section 817 of the Internal Revenue Code) to the
8466		-	extent such voting power or value is for the benefit of
8467		-	entities or persons who are either immune from
8468		-	taxation or exempt from taxation under subtitle A of
8469		-	the Internal Revenue Code.
8470		-	(2) Commercial domicile. The term "commercial
8471		-	domicile" means the principal place from which the trade
8472		-	or business of the taxpayer is directed or managed.
8473		-	(3) Compensation. The term "compensation" means wages,
8474		-	salaries, commissions and any other form of remuneration
8475		-	paid to employees for personal services.
8476		-
8477		-
8478		-	(4) Corporation. The term "corporation" includes
8479		-	associations, joint-stock companies, insurance companies
8480		-	and cooperatives. Any entity, including a limited
8481		-	liability company formed under the Illinois Limited
8482		-	Liability Company Act, shall be treated as a corporation
8483		-	if it is so classified for federal income tax purposes.
8484		-	(5) Department. The term "Department" means the
8485		-	Department of Revenue of this State.
8486		-	(6) Director. The term "Director" means the Director
8487		-	of Revenue of this State.
8488		-	(7) Fiduciary. The term "fiduciary" means a guardian,
8489		-	trustee, executor, administrator, receiver, or any person
8490		-	acting in any fiduciary capacity for any person.
8491		-	(8) Financial organization.
8492		-	(A) The term "financial organization" means any
8493		-	bank, bank holding company, trust company, savings
8494		-	bank, industrial bank, land bank, safe deposit
8495		-	company, private banker, savings and loan association,
8496		-	building and loan association, credit union, currency
8497		-	exchange, cooperative bank, small loan company, sales
8498		-	finance company, investment company, or any person
8499		-	which is owned by a bank or bank holding company. For
8500		-	the purpose of this Section a "person" will include
8501		-	only those persons which a bank holding company may
8502		-	acquire and hold an interest in, directly or
8503		-	indirectly, under the provisions of the Bank Holding
8504		-
8505		-
8506		-	Company Act of 1956 (12 U.S.C. 1841, et seq.), except
8507		-	where interests in any person must be disposed of
8508		-	within certain required time limits under the Bank
8509		-	Holding Company Act of 1956.
8510		-	(B) For purposes of subparagraph (A) of this
8511		-	paragraph, the term "bank" includes (i) any entity
8512		-	that is regulated by the Comptroller of the Currency
8513		-	under the National Bank Act, or by the Federal Reserve
8514		-	Board, or by the Federal Deposit Insurance Corporation
8515		-	and (ii) any federally or State chartered bank
8516		-	operating as a credit card bank.
8517		-	(C) For purposes of subparagraph (A) of this
8518		-	paragraph, the term "sales finance company" has the
8519		-	meaning provided in the following item (i) or (ii):
8520		-	(i) A person primarily engaged in one or more
8521		-	of the following businesses: the business of
8522		-	purchasing customer receivables, the business of
8523		-	making loans upon the security of customer
8524		-	receivables, the business of making loans for the
8525		-	express purpose of funding purchases of tangible
8526		-	personal property or services by the borrower, or
8527		-	the business of finance leasing. For purposes of
8528		-	this item (i), "customer receivable" means:
8529		-	(a) a retail installment contract or
8530		-	retail charge agreement within the meaning of
8531		-	the Sales Finance Agency Act, the Retail
8532		-
8533		-
8534		-	Installment Sales Act, or the Motor Vehicle
8535		-	Retail Installment Sales Act;
8536		-	(b) an installment, charge, credit, or
8537		-	similar contract or agreement arising from the
8538		-	sale of tangible personal property or services
8539		-	in a transaction involving a deferred payment
8540		-	price payable in one or more installments
8541		-	subsequent to the sale; or
8542		-	(c) the outstanding balance of a contract
8543		-	or agreement described in provisions (a) or
8544		-	(b) of this item (i).
8545		-	A customer receivable need not provide for
8546		-	payment of interest on deferred payments. A sales
8547		-	finance company may purchase a customer receivable
8548		-	from, or make a loan secured by a customer
8549		-	receivable to, the seller in the original
8550		-	transaction or to a person who purchased the
8551		-	customer receivable directly or indirectly from
8552		-	that seller.
8553		-	(ii) A corporation meeting each of the
8554		-	following criteria:
8555		-	(a) the corporation must be a member of an
8556		-	"affiliated group" within the meaning of
8557		-	Section 1504(a) of the Internal Revenue Code,
8558		-	determined without regard to Section 1504(b)
8559		-	of the Internal Revenue Code;
8560		-
8561		-
8562		-	(b) more than 50% of the gross income of
8563		-	the corporation for the taxable year must be
8564		-	interest income derived from qualifying loans.
8565		-	A "qualifying loan" is a loan made to a member
8566		-	of the corporation's affiliated group that
8567		-	originates customer receivables (within the
8568		-	meaning of item (i)) or to whom customer
8569		-	receivables originated by a member of the
8570		-	affiliated group have been transferred, to the
8571		-	extent the average outstanding balance of
8572		-	loans from that corporation to members of its
8573		-	affiliated group during the taxable year do
8574		-	not exceed the limitation amount for that
8575		-	corporation. The "limitation amount" for a
8576		-	corporation is the average outstanding
8577		-	balances during the taxable year of customer
8578		-	receivables (within the meaning of item (i))
8579		-	originated by all members of the affiliated
8580		-	group. If the average outstanding balances of
8581		-	the loans made by a corporation to members of
8582		-	its affiliated group exceed the limitation
8583		-	amount, the interest income of that
8584		-	corporation from qualifying loans shall be
8585		-	equal to its interest income from loans to
8586		-	members of its affiliated groups times a
8587		-	fraction equal to the limitation amount
8588		-
8589		-
8590		-	divided by the average outstanding balances of
8591		-	the loans made by that corporation to members
8592		-	of its affiliated group;
8593		-	(c) the total of all shareholder's equity
8594		-	(including, without limitation, paid-in
8595		-	capital on common and preferred stock and
8596		-	retained earnings) of the corporation plus the
8597		-	total of all of its loans, advances, and other
8598		-	obligations payable or owed to members of its
8599		-	affiliated group may not exceed 20% of the
8600		-	total assets of the corporation at any time
8601		-	during the tax year; and
8602		-	(d) more than 50% of all interest-bearing
8603		-	obligations of the affiliated group payable to
8604		-	persons outside the group determined in
8605		-	accordance with generally accepted accounting
8606		-	principles must be obligations of the
8607		-	corporation.
8608		-	This amendatory Act of the 91st General Assembly
8609		-	is declaratory of existing law.
8610		-	(D) Subparagraphs (B) and (C) of this paragraph
8611		-	are declaratory of existing law and apply
8612		-	retroactively, for all tax years beginning on or
8613		-	before December 31, 1996, to all original returns, to
8614		-	all amended returns filed no later than 30 days after
8615		-	the effective date of this amendatory Act of 1996, and
8616		-
8617		-
8618		-	to all notices issued on or before the effective date
8619		-	of this amendatory Act of 1996 under subsection (a) of
8620		-	Section 903, subsection (a) of Section 904, subsection
8621		-	(e) of Section 909, or Section 912. A taxpayer that is
8622		-	a "financial organization" that engages in any
8623		-	transaction with an affiliate shall be a "financial
8624		-	organization" for all purposes of this Act.
8625		-	(E) For all tax years beginning on or before
8626		-	December 31, 1996, a taxpayer that falls within the
8627		-	definition of a "financial organization" under
8628		-	subparagraphs (B) or (C) of this paragraph, but who
8629		-	does not fall within the definition of a "financial
8630		-	organization" under the Proposed Regulations issued by
8631		-	the Department of Revenue on July 19, 1996, may
8632		-	irrevocably elect to apply the Proposed Regulations
8633		-	for all of those years as though the Proposed
8634		-	Regulations had been lawfully promulgated, adopted,
8635		-	and in effect for all of those years. For purposes of
8636		-	applying subparagraphs (B) or (C) of this paragraph to
8637		-	all of those years, the election allowed by this
8638		-	subparagraph applies only to the taxpayer making the
8639		-	election and to those members of the taxpayer's
8640		-	unitary business group who are ordinarily required to
8641		-	apportion business income under the same subsection of
8642		-	Section 304 of this Act as the taxpayer making the
8643		-	election. No election allowed by this subparagraph
8644		-
8645		-
8646		-	shall be made under a claim filed under subsection (d)
8647		-	of Section 909 more than 30 days after the effective
8648		-	date of this amendatory Act of 1996.
8649		-	(F) Finance Leases. For purposes of this
8650		-	subsection, a finance lease shall be treated as a loan
8651		-	or other extension of credit, rather than as a lease,
8652		-	regardless of how the transaction is characterized for
8653		-	any other purpose, including the purposes of any
8654		-	regulatory agency to which the lessor is subject. A
8655		-	finance lease is any transaction in the form of a lease
8656		-	in which the lessee is treated as the owner of the
8657		-	leased asset entitled to any deduction for
8658		-	depreciation allowed under Section 167 of the Internal
8659		-	Revenue Code.
8660		-	(9) Fiscal year. The term "fiscal year" means an
8661		-	accounting period of 12 months ending on the last day of
8662		-	any month other than December.
8663		-	(9.5) Fixed place of business. The term "fixed place
8664		-	of business" has the same meaning as that term is given in
8665		-	Section 864 of the Internal Revenue Code and the related
8666		-	Treasury regulations.
8667		-	(10) Includes and including. The terms "includes" and
8668		-	"including" when used in a definition contained in this
8669		-	Act shall not be deemed to exclude other things otherwise
8670		-	within the meaning of the term defined.
8671		-	(11) Internal Revenue Code. The term "Internal Revenue
8672		-
8673		-
8674		-	Code" means the United States Internal Revenue Code of
8675		-	1954 or any successor law or laws relating to federal
8676		-	income taxes in effect for the taxable year.
8677		-	(11.5) Investment partnership.
8678		-	(A) For tax years ending before December 31, 2023,
8679		-	the The term "investment partnership" means any entity
8680		-	that is treated as a partnership for federal income
8681		-	tax purposes that meets the following requirements:
8682		-	(i) no less than 90% of the partnership's cost
8683		-	of its total assets consists of qualifying
8684		-	investment securities, deposits at banks or other
8685		-	financial institutions, and office space and
8686		-	equipment reasonably necessary to carry on its
8687		-	activities as an investment partnership;
8688		-	(ii) no less than 90% of its gross income
8689		-	consists of interest, dividends, and gains from
8690		-	the sale or exchange of qualifying investment
8691		-	securities; and
8692		-	(iii) the partnership is not a dealer in
8693		-	qualifying investment securities.
8694		-	(A-5) For tax years ending on or after December
8695		-	31, 2023, the term "investment partnership" means any
8696		-	entity that is treated as a partnership for federal
8697		-	income tax purposes that meets the following
8698		-	requirements:
8699		-	(i) no less than 90% of the partnership's cost
8700		-
8701		-
8702		-	of its total assets consists of qualifying
8703		-	investment securities, deposits at banks or other
8704		-	financial institutions, and office space and
8705		-	equipment reasonably necessary to carry on its
8706		-	activities as an investment partnership; and
8707		-	(ii) no less than 90% of its gross income
8708		-	consists of interest, dividends, gains from the
8709		-	sale or exchange of qualifying investment
8710		-	securities, and the distributive share of
8711		-	partnership income from lower-tier partnership
8712		-	interests meeting the definition of qualifying
8713		-	investment security under subparagraph (B)(xiii);
8714		-	for the purposes of this subparagraph (ii), "gross
8715		-	income" does not include income from partnerships
8716		-	that are operating at a federal taxable loss.
8717		-	(B) For purposes of this paragraph (11.5), the
8718		-	term "qualifying investment securities" (other than,
8719		-	for tax years ending on or after December 31, 2023,
8720		-	securities with respect to which the taxpayer is
8721		-	required to apply the rules of Internal Revenue Code
8722		-	Section 475(a)) includes all of the following:
8723		-	(i) common stock, including preferred or debt
8724		-	securities convertible into common stock, and
8725		-	preferred stock;
8726		-	(ii) bonds, debentures, and other debt
8727		-	securities;
8728		-
8729		-
8730		-	(iii) foreign and domestic currency deposits
8731		-	secured by federal, state, or local governmental
8732		-	agencies;
8733		-	(iv) mortgage or asset-backed securities
8734		-	secured by federal, state, or local governmental
8735		-	agencies;
8736		-	(v) repurchase agreements and loan
8737		-	participations;
8738		-	(vi) foreign currency exchange contracts and
8739		-	forward and futures contracts on foreign
8740		-	currencies;
8741		-	(vii) stock and bond index securities and
8742		-	futures contracts and other similar financial
8743		-	securities and futures contracts on those
8744		-	securities;
8745		-	(viii) options for the purchase or sale of any
8746		-	of the securities, currencies, contracts, or
8747		-	financial instruments described in items (i) to
8748		-	(vii), inclusive;
8749		-	(ix) regulated futures contracts;
8750		-	(x) commodities (not described in Section
8751		-	1221(a)(1) of the Internal Revenue Code) or
8752		-	futures, forwards, and options with respect to
8753		-	such commodities, provided, however, that any item
8754		-	of a physical commodity to which title is actually
8755		-	acquired in the partnership's capacity as a dealer
8756		-
8757		-
8758		-	in such commodity shall not be a qualifying
8759		-	investment security;
8760		-	(xi) derivatives; and
8761		-	(xii) a partnership interest in another
8762		-	partnership that is an investment partnership; and
8763		-	.
8764		-	(xiii) for tax years ending on or after
8765		-	December 31, 2023, a partnership interest that, in
8766		-	the hands of the partnership, qualifies as a
8767		-	security within the meaning of subsection (a)(1)
8768		-	of Subchapter 77b of Chapter 2A of Title 15 of the
8769		-	United States Code.
8770		-	(12) Mathematical error. The term "mathematical error"
8771		-	includes the following types of errors, omissions, or
8772		-	defects in a return filed by a taxpayer which prevents
8773		-	acceptance of the return as filed for processing:
8774		-	(A) arithmetic errors or incorrect computations on
8775		-	the return or supporting schedules;
8776		-	(B) entries on the wrong lines;
8777		-	(C) omission of required supporting forms or
8778		-	schedules or the omission of the information in whole
8779		-	or in part called for thereon; and
8780		-	(D) an attempt to claim, exclude, deduct, or
8781		-	improperly report, in a manner directly contrary to
8782		-	the provisions of the Act and regulations thereunder
8783		-	any item of income, exemption, deduction, or credit.
8784		-
8785		-
8786		-	(13) Nonbusiness income. The term "nonbusiness income"
8787		-	means all income other than business income or
8788		-	compensation.
8789		-	(14) Nonresident. The term "nonresident" means a
8790		-	person who is not a resident.
8791		-	(15) Paid, incurred and accrued. The terms "paid",
8792		-	"incurred" and "accrued" shall be construed according to
8793		-	the method of accounting upon the basis of which the
8794		-	person's base income is computed under this Act.
8795		-	(16) Partnership and partner. The term "partnership"
8796		-	includes a syndicate, group, pool, joint venture or other
8797		-	unincorporated organization, through or by means of which
8798		-	any business, financial operation, or venture is carried
8799		-	on, and which is not, within the meaning of this Act, a
8800		-	trust or estate or a corporation; and the term "partner"
8801		-	includes a member in such syndicate, group, pool, joint
8802		-	venture or organization.
8803		-	The term "partnership" includes any entity, including
8804		-	a limited liability company formed under the Illinois
8805		-	Limited Liability Company Act, classified as a partnership
8806		-	for federal income tax purposes.
8807		-	The term "partnership" does not include a syndicate,
8808		-	group, pool, joint venture, or other unincorporated
8809		-	organization established for the sole purpose of playing
8810		-	the Illinois State Lottery.
8811		-	(17) Part-year resident. The term "part-year resident"
8812		-
8813		-
8814		-	means an individual who became a resident during the
8815		-	taxable year or ceased to be a resident during the taxable
8816		-	year. Under Section 1501(a)(20)(A)(i) residence commences
8817		-	with presence in this State for other than a temporary or
8818		-	transitory purpose and ceases with absence from this State
8819		-	for other than a temporary or transitory purpose. Under
8820		-	Section 1501(a)(20)(A)(ii) residence commences with the
8821		-	establishment of domicile in this State and ceases with
8822		-	the establishment of domicile in another State.
8823		-	(18) Person. The term "person" shall be construed to
8824		-	mean and include an individual, a trust, estate,
8825		-	partnership, association, firm, company, corporation,
8826		-	limited liability company, or fiduciary. For purposes of
8827		-	Section 1301 and 1302 of this Act, a "person" means (i) an
8828		-	individual, (ii) a corporation, (iii) an officer, agent,
8829		-	or employee of a corporation, (iv) a member, agent or
8830		-	employee of a partnership, or (v) a member, manager,
8831		-	employee, officer, director, or agent of a limited
8832		-	liability company who in such capacity commits an offense
8833		-	specified in Section 1301 and 1302.
8834		-	(18A) Records. The term "records" includes all data
8835		-	maintained by the taxpayer, whether on paper, microfilm,
8836		-	microfiche, or any type of machine-sensible data
8837		-	compilation.
8838		-	(19) Regulations. The term "regulations" includes
8839		-	rules promulgated and forms prescribed by the Department.
8840		-
8841		-
8842		-	(20) Resident. The term "resident" means:
8843		-	(A) an individual (i) who is in this State for
8844		-	other than a temporary or transitory purpose during
8845		-	the taxable year; or (ii) who is domiciled in this
8846		-	State but is absent from the State for a temporary or
8847		-	transitory purpose during the taxable year;
8848		-	(B) The estate of a decedent who at his or her
8849		-	death was domiciled in this State;
8850		-	(C) A trust created by a will of a decedent who at
8851		-	his death was domiciled in this State; and
8852		-	(D) An irrevocable trust, the grantor of which was
8853		-	domiciled in this State at the time such trust became
8854		-	irrevocable. For purpose of this subparagraph, a trust
8855		-	shall be considered irrevocable to the extent that the
8856		-	grantor is not treated as the owner thereof under
8857		-	Sections 671 through 678 of the Internal Revenue Code.
8858		-	(21) Sales. The term "sales" means all gross receipts
8859		-	of the taxpayer not allocated under Sections 301, 302 and
8860		-	303.
8861		-	(22) State. The term "state" when applied to a
8862		-	jurisdiction other than this State means any state of the
8863		-	United States, the District of Columbia, the Commonwealth
8864		-	of Puerto Rico, any Territory or Possession of the United
8865		-	States, and any foreign country, or any political
8866		-	subdivision of any of the foregoing. For purposes of the
8867		-	foreign tax credit under Section 601, the term "state"
8868		-
8869		-
8870		-	means any state of the United States, the District of
8871		-	Columbia, the Commonwealth of Puerto Rico, and any
8872		-	territory or possession of the United States, or any
8873		-	political subdivision of any of the foregoing, effective
8874		-	for tax years ending on or after December 31, 1989.
8875		-	(23) Taxable year. The term "taxable year" means the
8876		-	calendar year, or the fiscal year ending during such
8877		-	calendar year, upon the basis of which the base income is
8878		-	computed under this Act. "Taxable year" means, in the case
8879		-	of a return made for a fractional part of a year under the
8880		-	provisions of this Act, the period for which such return
8881		-	is made.
8882		-	(24) Taxpayer. The term "taxpayer" means any person
8883		-	subject to the tax imposed by this Act.
8884		-	(25) International banking facility. The term
8885		-	international banking facility shall have the same meaning
8886		-	as is set forth in the Illinois Banking Act or as is set
8887		-	forth in the laws of the United States or regulations of
8888		-	the Board of Governors of the Federal Reserve System.
8889		-	(26) Income Tax Return Preparer.
8890		-	(A) The term "income tax return preparer" means
8891		-	any person who prepares for compensation, or who
8892		-	employs one or more persons to prepare for
8893		-	compensation, any return of tax imposed by this Act or
8894		-	any claim for refund of tax imposed by this Act. The
8895		-	preparation of a substantial portion of a return or
8896		-
8897		-
8898		-	claim for refund shall be treated as the preparation
8899		-	of that return or claim for refund.
8900		-	(B) A person is not an income tax return preparer
8901		-	if all he or she does is
8902		-	(i) furnish typing, reproducing, or other
8903		-	mechanical assistance;
8904		-	(ii) prepare returns or claims for refunds for
8905		-	the employer by whom he or she is regularly and
8906		-	continuously employed;
8907		-	(iii) prepare as a fiduciary returns or claims
8908		-	for refunds for any person; or
8909		-	(iv) prepare claims for refunds for a taxpayer
8910		-	in response to any notice of deficiency issued to
8911		-	that taxpayer or in response to any waiver of
8912		-	restriction after the commencement of an audit of
8913		-	that taxpayer or of another taxpayer if a
8914		-	determination in the audit of the other taxpayer
8915		-	directly or indirectly affects the tax liability
8916		-	of the taxpayer whose claims he or she is
8917		-	preparing.
8918		-	(27) Unitary business group.
8919		-	(A) The term "unitary business group" means a
8920		-	group of persons related through common ownership
8921		-	whose business activities are integrated with,
8922		-	dependent upon and contribute to each other. The group
8923		-	will not include those members whose business activity
8924		-
8925		-
8926		-	outside the United States is 80% or more of any such
8927		-	member's total business activity; for purposes of this
8928		-	paragraph and clause (a)(3)(B)(ii) of Section 304,
8929		-	business activity within the United States shall be
8930		-	measured by means of the factors ordinarily applicable
8931		-	under subsections (a), (b), (c), (d), or (h) of
8932		-	Section 304 except that, in the case of members
8933		-	ordinarily required to apportion business income by
8934		-	means of the 3 factor formula of property, payroll and
8935		-	sales specified in subsection (a) of Section 304,
8936		-	including the formula as weighted in subsection (h) of
8937		-	Section 304, such members shall not use the sales
8938		-	factor in the computation and the results of the
8939		-	property and payroll factor computations of subsection
8940		-	(a) of Section 304 shall be divided by 2 (by one if
8941		-	either the property or payroll factor has a
8942		-	denominator of zero). The computation required by the
8943		-	preceding sentence shall, in each case, involve the
8944		-	division of the member's property, payroll, or revenue
8945		-	miles in the United States, insurance premiums on
8946		-	property or risk in the United States, or financial
8947		-	organization business income from sources within the
8948		-	United States, as the case may be, by the respective
8949		-	worldwide figures for such items. Common ownership in
8950		-	the case of corporations is the direct or indirect
8951		-	control or ownership of more than 50% of the
8952		-
8953		-
8954		-	outstanding voting stock of the persons carrying on
8955		-	unitary business activity. Unitary business activity
8956		-	can ordinarily be illustrated where the activities of
8957		-	the members are: (1) in the same general line (such as
8958		-	manufacturing, wholesaling, retailing of tangible
8959		-	personal property, insurance, transportation or
8960		-	finance); or (2) are steps in a vertically structured
8961		-	enterprise or process (such as the steps involved in
8962		-	the production of natural resources, which might
8963		-	include exploration, mining, refining, and marketing);
8964		-	and, in either instance, the members are functionally
8965		-	integrated through the exercise of strong centralized
8966		-	management (where, for example, authority over such
8967		-	matters as purchasing, financing, tax compliance,
8968		-	product line, personnel, marketing and capital
8969		-	investment is not left to each member).
8970		-	(B) In no event, for taxable years ending prior to
8971		-	December 31, 2017, shall any unitary business group
8972		-	include members which are ordinarily required to
8973		-	apportion business income under different subsections
8974		-	of Section 304 except that for tax years ending on or
8975		-	after December 31, 1987 this prohibition shall not
8976		-	apply to a holding company that would otherwise be a
8977		-	member of a unitary business group with taxpayers that
8978		-	apportion business income under any of subsections
8979		-	(b), (c), (c-1), or (d) of Section 304. If a unitary
8980		-
8981		-
8982		-	business group would, but for the preceding sentence,
8983		-	include members that are ordinarily required to
8984		-	apportion business income under different subsections
8985		-	of Section 304, then for each subsection of Section
8986		-	304 for which there are two or more members, there
8987		-	shall be a separate unitary business group composed of
8988		-	such members. For purposes of the preceding two
8989		-	sentences, a member is "ordinarily required to
8990		-	apportion business income" under a particular
8991		-	subsection of Section 304 if it would be required to
8992		-	use the apportionment method prescribed by such
8993		-	subsection except for the fact that it derives
8994		-	business income solely from Illinois. As used in this
8995		-	paragraph, for taxable years ending before December
8996		-	31, 2017, the phrase "United States" means only the 50
8997		-	states and the District of Columbia, but does not
8998		-	include any territory or possession of the United
8999		-	States or any area over which the United States has
9000		-	asserted jurisdiction or claimed exclusive rights with
9001		-	respect to the exploration for or exploitation of
9002		-	natural resources. For taxable years ending on or
9003		-	after December 31, 2017, the phrase "United States",
9004		-	as used in this paragraph, means only the 50 states,
9005		-	the District of Columbia, and any area over which the
9006		-	United States has asserted jurisdiction or claimed
9007		-	exclusive rights with respect to the exploration for
9008		-
9009		-
9010		-	or exploitation of natural resources, but does not
9011		-	include any territory or possession of the United
9012		-	States.
9013		-	(C) Holding companies.
9014		-	(i) For purposes of this subparagraph, a
9015		-	"holding company" is a corporation (other than a
9016		-	corporation that is a financial organization under
9017		-	paragraph (8) of this subsection (a) of Section
9018		-	1501 because it is a bank holding company under
9019		-	the provisions of the Bank Holding Company Act of
9020		-	1956 (12 U.S.C. 1841, et seq.) or because it is
9021		-	owned by a bank or a bank holding company) that
9022		-	owns a controlling interest in one or more other
9023		-	taxpayers ("controlled taxpayers"); that, during
9024		-	the period that includes the taxable year and the
9025		-	2 immediately preceding taxable years or, if the
9026		-	corporation was formed during the current or
9027		-	immediately preceding taxable year, the taxable
9028		-	years in which the corporation has been in
9029		-	existence, derived substantially all its gross
9030		-	income from dividends, interest, rents, royalties,
9031		-	fees or other charges received from controlled
9032		-	taxpayers for the provision of services, and gains
9033		-	on the sale or other disposition of interests in
9034		-	controlled taxpayers or in property leased or
9035		-	licensed to controlled taxpayers or used by the
9036		-
9037		-
9038		-	taxpayer in providing services to controlled
9039		-	taxpayers; and that incurs no substantial expenses
9040		-	other than expenses (including interest and other
9041		-	costs of borrowing) incurred in connection with
9042		-	the acquisition and holding of interests in
9043		-	controlled taxpayers and in the provision of
9044		-	services to controlled taxpayers or in the leasing
9045		-	or licensing of property to controlled taxpayers.
9046		-	(ii) The income of a holding company which is
9047		-	a member of more than one unitary business group
9048		-	shall be included in each unitary business group
9049		-	of which it is a member on a pro rata basis, by
9050		-	including in each unitary business group that
9051		-	portion of the base income of the holding company
9052		-	that bears the same proportion to the total base
9053		-	income of the holding company as the gross
9054		-	receipts of the unitary business group bears to
9055		-	the combined gross receipts of all unitary
9056		-	business groups (in both cases without regard to
9057		-	the holding company) or on any other reasonable
9058		-	basis, consistently applied.
9059		-	(iii) A holding company shall apportion its
9060		-	business income under the subsection of Section
9061		-	304 used by the other members of its unitary
9062		-	business group. The apportionment factors of a
9063		-	holding company which would be a member of more
9064		-
9065		-
9066		-	than one unitary business group shall be included
9067		-	with the apportionment factors of each unitary
9068		-	business group of which it is a member on a pro
9069		-	rata basis using the same method used in clause
9070		-	(ii).
9071		-	(iv) The provisions of this subparagraph (C)
9072		-	are intended to clarify existing law.
9073		-	(D) If including the base income and factors of a
9074		-	holding company in more than one unitary business
9075		-	group under subparagraph (C) does not fairly reflect
9076		-	the degree of integration between the holding company
9077		-	and one or more of the unitary business groups, the
9078		-	dependence of the holding company and one or more of
9079		-	the unitary business groups upon each other, or the
9080		-	contributions between the holding company and one or
9081		-	more of the unitary business groups, the holding
9082		-	company may petition the Director, under the
9083		-	procedures provided under Section 304(f), for
9084		-	permission to include all base income and factors of
9085		-	the holding company only with members of a unitary
9086		-	business group apportioning their business income
9087		-	under one subsection of subsections (a), (b), (c), or
9088		-	(d) of Section 304. If the petition is granted, the
9089		-	holding company shall be included in a unitary
9090		-	business group only with persons apportioning their
9091		-	business income under the selected subsection of
9092		-
9093		-
9094		-	Section 304 until the Director grants a petition of
9095		-	the holding company either to be included in more than
9096		-	one unitary business group under subparagraph (C) or
9097		-	to include its base income and factors only with
9098		-	members of a unitary business group apportioning their
9099		-	business income under a different subsection of
9100		-	Section 304.
9101		-	(E) If the unitary business group members'
9102		-	accounting periods differ, the common parent's
9103		-	accounting period or, if there is no common parent,
9104		-	the accounting period of the member that is expected
9105		-	to have, on a recurring basis, the greatest Illinois
9106		-	income tax liability must be used to determine whether
9107		-	to use the apportionment method provided in subsection
9108		-	(a) or subsection (h) of Section 304. The prohibition
9109		-	against membership in a unitary business group for
9110		-	taxpayers ordinarily required to apportion income
9111		-	under different subsections of Section 304 does not
9112		-	apply to taxpayers required to apportion income under
9113		-	subsection (a) and subsection (h) of Section 304. The
9114		-	provisions of this amendatory Act of 1998 apply to tax
9115		-	years ending on or after December 31, 1998.
9116		-	(28) Subchapter S corporation. The term "Subchapter S
9117		-	corporation" means a corporation for which there is in
9118		-	effect an election under Section 1362 of the Internal
9119		-	Revenue Code, or for which there is a federal election to
9120		-
9121		-
9122		-	opt out of the provisions of the Subchapter S Revision Act
9123		-	of 1982 and have applied instead the prior federal
9124		-	Subchapter S rules as in effect on July 1, 1982.
9125		-	(30) Foreign person. The term "foreign person" means
9126		-	any person who is a nonresident individual who is a
9127		-	national or citizen of a country other than the United
9128		-	States and any nonindividual entity, regardless of where
9129		-	created or organized, whose business activity outside the
9130		-	United States is 80% or more of the entity's total
9131		-	business activity.
9132		-	(b) Other definitions.
9133		-	(1) Words denoting number, gender, and so forth, when
9134		-	used in this Act, where not otherwise distinctly expressed
9135		-	or manifestly incompatible with the intent thereof:
9136		-	(A) Words importing the singular include and apply
9137		-	to several persons, parties or things;
9138		-	(B) Words importing the plural include the
9139		-	singular; and
9140		-	(C) Words importing the masculine gender include
9141		-	the feminine as well.
9142		-	(2) "Company" or "association" as including successors
9143		-	and assigns. The word "company" or "association", when
9144		-	used in reference to a corporation, shall be deemed to
9145		-	embrace the words "successors and assigns of such company
9146		-	or association", and in like manner as if these last-named
9147		-	words, or words of similar import, were expressed.
9148		-
9149		-
9150		-	(3) Other terms. Any term used in any Section of this
9151		-	Act with respect to the application of, or in connection
9152		-	with, the provisions of any other Section of this Act
9153		-	shall have the same meaning as in such other Section.
9154		-	(Source: P.A. 102-1030, eff. 5-27-22.)
9155		-	ARTICLE 55. ANGEL INVESTMENT CREDIT
9156		-	Section 55-5. The Illinois Income Tax Act is amended by
9157		-	changing Section 220 as follows:
9158		-	(35 ILCS 5/220)
9159		-	Sec. 220. Angel investment credit.
9160		-	(a) As used in this Section:
9161		-	"Applicant" means a corporation, partnership, limited
9162		-	liability company, or a natural person that makes an
9163		-	investment in a qualified new business venture. The term
9164		-	"applicant" does not include (i) a corporation, partnership,
9165		-	limited liability company, or a natural person who has a
9166		-	direct or indirect ownership interest of at least 51% in the
9167		-	profits, capital, or value of the qualified new business
9168		-	venture receiving the investment or (ii) a related member.
9169		-	"Claimant" means an applicant certified by the Department
9170		-	who files a claim for a credit under this Section.
9171		-	"Department" means the Department of Commerce and Economic
9172		-	Opportunity.
9173		-
9174		-
9175		-	"Investment" means money (or its equivalent) given to a
9176		-	qualified new business venture, at a risk of loss, in
9177		-	consideration for an equity interest of the qualified new
9178		-	business venture. The Department may adopt rules to permit
9179		-	certain forms of contingent equity investments to be
9180		-	considered eligible for a tax credit under this Section.
9181		-	"Qualified new business venture" means a business that is
9182		-	registered with the Department under this Section.
9183		-	"Related member" means a person that, with respect to the
9184		-	applicant, is any one of the following:
9185		-	(1) An individual, if the individual and the members
9186		-	of the individual's family (as defined in Section 318 of
9187		-	the Internal Revenue Code) own directly, indirectly,
9188		-	beneficially, or constructively, in the aggregate, at
9189		-	least 50% of the value of the outstanding profits,
9190		-	capital, stock, or other ownership interest in the
9191		-	qualified new business venture that is the recipient of
9192		-	the applicant's investment.
9193		-	(2) A partnership, estate, or trust and any partner or
9194		-	beneficiary, if the partnership, estate, or trust and its
9195		-	partners or beneficiaries own directly, indirectly,
9196		-	beneficially, or constructively, in the aggregate, at
9197		-	least 50% of the profits, capital, stock, or other
9198		-	ownership interest in the qualified new business venture
9199		-	that is the recipient of the applicant's investment.
9200		-	(3) A corporation, and any party related to the
9201		-
9202		-
9203		-	corporation in a manner that would require an attribution
9204		-	of stock from the corporation under the attribution rules
9205		-	of Section 318 of the Internal Revenue Code, if the
9206		-	applicant and any other related member own, in the
9207		-	aggregate, directly, indirectly, beneficially, or
9208		-	constructively, at least 50% of the value of the
9209		-	outstanding stock of the qualified new business venture
9210		-	that is the recipient of the applicant's investment.
9211		-	(4) A corporation and any party related to that
9212		-	corporation in a manner that would require an attribution
9213		-	of stock from the corporation to the party or from the
9214		-	party to the corporation under the attribution rules of
9215		-	Section 318 of the Internal Revenue Code, if the
9216		-	corporation and all such related parties own, in the
9217		-	aggregate, at least 50% of the profits, capital, stock, or
9218		-	other ownership interest in the qualified new business
9219		-	venture that is the recipient of the applicant's
9220		-	investment.
9221		-	(5) A person to or from whom there is attribution of
9222		-	ownership of stock in the qualified new business venture
9223		-	that is the recipient of the applicant's investment in
9224		-	accordance with Section 1563(e) of the Internal Revenue
9225		-	Code, except that for purposes of determining whether a
9226		-	person is a related member under this paragraph, "20%"
9227		-	shall be substituted for "5%" whenever "5%" appears in
9228		-	Section 1563(e) of the Internal Revenue Code.
9229		-
9230		-
9231		-	(b) For taxable years beginning after December 31, 2010,
9232		-	and ending on or before December 31, 2026, subject to the
9233		-	limitations provided in this Section, a claimant may claim, as
9234		-	a credit against the tax imposed under subsections (a) and (b)
9235		-	of Section 201 of this Act, an amount equal to 25% of the
9236		-	claimant's investment made directly in a qualified new
9237		-	business venture. However, the amount of the credit is 35% of
9238		-	the claimant's investment made directly in the qualified new
9239		-	business venture if the investment is made in: (1) a qualified
9240		-	new business venture that is a minority-owned business, a
9241		-	women-owned business, or a business owned a person with a
9242		-	disability (as those terms are used and defined in the
9243		-	Business Enterprise for Minorities, Women, and Persons with
9244		-	Disabilities Act); or (2) a qualified new business venture in
9245		-	which the principal place of business is located in a county
9246		-	with a population of not more than 250,000. In order for an
9247		-	investment in a qualified new business venture to be eligible
9248		-	for tax credits, the business must have applied for and
9249		-	received certification under subsection (e) for the taxable
9250		-	year in which the investment was made prior to the date on
9251		-	which the investment was made. The credit under this Section
9252		-	may not exceed the taxpayer's Illinois income tax liability
9253		-	for the taxable year. If the amount of the credit exceeds the
9254		-	tax liability for the year, the excess may be carried forward
9255		-	and applied to the tax liability of the 5 taxable years
9256		-	following the excess credit year. The credit shall be applied
9257		-
9258		-
9259		-	to the earliest year for which there is a tax liability. If
9260		-	there are credits from more than one tax year that are
9261		-	available to offset a liability, the earlier credit shall be
9262		-	applied first. In the case of a partnership or Subchapter S
9263		-	Corporation, the credit is allowed to the partners or
9264		-	shareholders in accordance with the determination of income
9265		-	and distributive share of income under Sections 702 and 704
9266		-	and Subchapter S of the Internal Revenue Code.
9267		-	(c) The minimum amount an applicant must invest in any
9268		-	single qualified new business venture in order to be eligible
9269		-	for a credit under this Section is $10,000. The maximum amount
9270		-	of an applicant's total investment made in any single
9271		-	qualified new business venture that may be used as the basis
9272		-	for a credit under this Section is $2,000,000.
9273		-	(d) The Department shall implement a program to certify an
9274		-	applicant for an angel investment credit. Upon satisfactory
9275		-	review, the Department shall issue a tax credit certificate
9276		-	stating the amount of the tax credit to which the applicant is
9277		-	entitled. The Department shall annually certify that: (i) each
9278		-	qualified new business venture that receives an angel
9279		-	investment under this Section has maintained a minimum
9280		-	employment threshold, as defined by rule, in the State (and
9281		-	continues to maintain a minimum employment threshold in the
9282		-	State for a period of no less than 3 years from the issue date
9283		-	of the last tax credit certificate issued by the Department
9284		-	with respect to such business pursuant to this Section); and
9285		-
9286		-
9287		-	(ii) the claimant's investment has been made and remains,
9288		-	except in the event of a qualifying liquidity event, in the
9289		-	qualified new business venture for no less than 3 years.
9290		-	If an investment for which a claimant is allowed a credit
9291		-	under subsection (b) is held by the claimant for less than 3
9292		-	years, other than as a result of a permitted sale of the
9293		-	investment to person who is not a related member, the claimant
9294		-	shall pay to the Department of Revenue, in the manner
9295		-	prescribed by the Department of Revenue, the aggregate amount
9296		-	of the disqualified credits that the claimant received related
9297		-	to the subject investment.
9298		-	If the Department determines that a qualified new business
9299		-	venture failed to maintain a minimum employment threshold in
9300		-	the State through the date which is 3 years from the issue date
9301		-	of the last tax credit certificate issued by the Department
9302		-	with respect to the subject business pursuant to this Section,
9303		-	the claimant or claimants shall pay to the Department of
9304		-	Revenue, in the manner prescribed by the Department of
9305		-	Revenue, the aggregate amount of the disqualified credits that
9306		-	claimant or claimants received related to investments in that
9307		-	business.
9308		-	(e) The Department shall implement a program to register
9309		-	qualified new business ventures for purposes of this Section.
9310		-	A business desiring registration under this Section shall be
9311		-	required to submit a full and complete application to the
9312		-	Department. A submitted application shall be effective only
9313		-
9314		-
9315		-	for the taxable year in which it is submitted, and a business
9316		-	desiring registration under this Section shall be required to
9317		-	submit a separate application in and for each taxable year for
9318		-	which the business desires registration. Further, if at any
9319		-	time prior to the acceptance of an application for
9320		-	registration under this Section by the Department one or more
9321		-	events occurs which makes the information provided in that
9322		-	application materially false or incomplete (in whole or in
9323		-	part), the business shall promptly notify the Department of
9324		-	the same. Any failure of a business to promptly provide the
9325		-	foregoing information to the Department may, at the discretion
9326		-	of the Department, result in a revocation of a previously
9327		-	approved application for that business, or disqualification of
9328		-	the business from future registration under this Section, or
9329		-	both. The Department may register the business only if all of
9330		-	the following conditions are satisfied:
9331		-	(1) it has its principal place of business in this
9332		-	State;
9333		-	(2) at least 51% of the employees employed by the
9334		-	business are employed in this State;
9335		-	(3) the business has the potential for increasing jobs
9336		-	in this State, increasing capital investment in this
9337		-	State, or both, as determined by the Department, and
9338		-	either of the following apply:
9339		-	(A) it is principally engaged in innovation in any
9340		-	of the following: manufacturing; biotechnology;
9341		-
9342		-
9343		-	nanotechnology; communications; agricultural
9344		-	sciences; clean energy creation or storage technology;
9345		-	processing or assembling products, including medical
9346		-	devices, pharmaceuticals, computer software, computer
9347		-	hardware, semiconductors, other innovative technology
9348		-	products, or other products that are produced using
9349		-	manufacturing methods that are enabled by applying
9350		-	proprietary technology; or providing services that are
9351		-	enabled by applying proprietary technology; or
9352		-	(B) it is undertaking pre-commercialization
9353		-	activity related to proprietary technology that
9354		-	includes conducting research, developing a new product
9355		-	or business process, or developing a service that is
9356		-	principally reliant on applying proprietary
9357		-	technology;
9358		-	(4) it is not principally engaged in real estate
9359		-	development, insurance, banking, lending, lobbying,
9360		-	political consulting, professional services provided by
9361		-	attorneys, accountants, business consultants, physicians,
9362		-	or health care consultants, wholesale or retail trade,
9363		-	leisure, hospitality, transportation, or construction,
9364		-	except construction of power production plants that derive
9365		-	energy from a renewable energy resource, as defined in
9366		-	Section 1 of the Illinois Power Agency Act;
9367		-	(5) at the time it is first certified:
9368		-	(A) it has fewer than 100 employees;
9369		-
9370		-
9371		-	(B) it has been in operation in Illinois for not
9372		-	more than 10 consecutive years prior to the year of
9373		-	certification; and
9374		-	(C) it has received not more than $10,000,000 in
9375		-	aggregate investments;
9376		-	(5.1) it agrees to maintain a minimum employment
9377		-	threshold in the State of Illinois prior to the date which
9378		-	is 3 years from the issue date of the last tax credit
9379		-	certificate issued by the Department with respect to that
9380		-	business pursuant to this Section;
9381		-	(6) (blank); and
9382		-	(7) it has received not more than $4,000,000 in
9383		-	investments that qualified for tax credits under this
9384		-	Section.
9385		-	(f) The Department, in consultation with the Department of
9386		-	Revenue, shall adopt rules to administer this Section. For
9387		-	taxable years beginning before January 1, 2024, the The
9388		-	aggregate amount of the tax credits that may be claimed under
9389		-	this Section for investments made in qualified new business
9390		-	ventures shall be limited to at $10,000,000 per calendar year,
9391		-	of which $500,000 shall be reserved for investments made in
9392		-	qualified new business ventures which are minority-owned
9393		-	businesses, women-owned businesses, or businesses owned by a
9394		-	person with a disability (as those terms are used and defined
9395		-	in the Business Enterprise for Minorities, Women, and Persons
9396		-	with Disabilities Act), and an additional $500,000 shall be
9397		-
9398		-
9399		-	reserved for investments made in qualified new business
9400		-	ventures with their principal place of business in counties
9401		-	with a population of not more than 250,000. For taxable years
9402		-	beginning on or after January 1, 2024, the aggregate amount of
9403		-	the tax credits that may be claimed under this Section for
9404		-	investments made in qualified new business ventures shall be
9405		-	limited to $15,000,000 per calendar year, of which $2,500,000
9406		-	shall be reserved for investments made in qualified new
9407		-	business ventures that are minority-owned businesses (as the
9408		-	term is defined in the Business Enterprise for Minorities,
9409		-	Women, and Persons with Disabilities Act), $1,250,000 shall be
9410		-	reserved for investments made in qualified new business
9411		-	ventures that are women-owned businesses or businesses owned
9412		-	by a person with a disability (as those terms are defined in
9413		-	the Business Enterprise for Minorities, Women, and Persons
9414		-	with Disabilities Act), and $1,250,000 shall be reserved for
9415		-	investments made in qualified new business ventures with their
9416		-	principal place of business in a county with a population of
9417		-	not more than 250,000. The foregoing annual allowable amounts
9418		-	set forth in this Section shall be allocated by the
9419		-	Department, on a per calendar quarter basis and prior to the
9420		-	commencement of each calendar year, in such proportion as
9421		-	determined by the Department, provided that: (i) the amount
9422		-	initially allocated by the Department for any one calendar
9423		-	quarter shall not exceed 35% of the total allowable amount;
9424		-	(ii) any portion of the allocated allowable amount remaining
9425		-
9426		-
9427		-	unused as of the end of any of the first 3 calendar quarters of
9428		-	a given calendar year shall be rolled into, and added to, the
9429		-	total allocated amount for the next available calendar
9430		-	quarter; and (iii) the reservation of tax credits for
9431		-	investments in minority-owned businesses, women-owned
9432		-	businesses, businesses owned by a person with a disability,
9433		-	and in businesses in counties with a population of not more
9434		-	than 250,000 is limited to the first 3 calendar quarters of a
9435		-	given calendar year, after which they may be claimed by
9436		-	investors in any qualified new business venture.
9437		-	(g) A claimant may not sell or otherwise transfer a credit
9438		-	awarded under this Section to another person.
9439		-	(h) On or before March 1 of each year, the Department shall
9440		-	report to the Governor and to the General Assembly on the tax
9441		-	credit certificates awarded under this Section for the prior
9442		-	calendar year.
9443		-	(1) This report must include, for each tax credit
9444		-	certificate awarded:
9445		-	(A) the name of the claimant and the amount of
9446		-	credit awarded or allocated to that claimant;
9447		-	(B) the name and address (including the county) of
9448		-	the qualified new business venture that received the
9449		-	investment giving rise to the credit, the North
9450		-	American Industry Classification System (NAICS) code
9451		-	applicable to that qualified new business venture, and
9452		-	the number of employees of the qualified new business
9453		-
9454		-
9455		-	venture; and
9456		-	(C) the date of approval by the Department of each
9457		-	claimant's tax credit certificate.
9458		-	(2) The report must also include:
9459		-	(A) the total number of applicants and the total
9460		-	number of claimants, including the amount of each tax
9461		-	credit certificate awarded to a claimant under this
9462		-	Section in the prior calendar year;
9463		-	(B) the total number of applications from
9464		-	businesses seeking registration under this Section,
9465		-	the total number of new qualified business ventures
9466		-	registered by the Department, and the aggregate amount
9467		-	of investment upon which tax credit certificates were
9468		-	issued in the prior calendar year; and
9469		-	(C) the total amount of tax credit certificates
9470		-	sought by applicants, the amount of each tax credit
9471		-	certificate issued to a claimant, the aggregate amount
9472		-	of all tax credit certificates issued in the prior
9473		-	calendar year and the aggregate amount of tax credit
9474		-	certificates issued as authorized under this Section
9475		-	for all calendar years.
9476		-	(i) For each business seeking registration under this
9477		-	Section after December 31, 2016, the Department shall require
9478		-	the business to include in its application the North American
9479		-	Industry Classification System (NAICS) code applicable to the
9480		-	business and the number of employees of the business at the
9481		-
9482		-
9483		-	time of application. Each business registered by the
9484		-	Department as a qualified new business venture that receives
9485		-	an investment giving rise to the issuance of a tax credit
9486		-	certificate pursuant to this Section shall, for each of the 3
9487		-	years following the issue date of the last tax credit
9488		-	certificate issued by the Department with respect to such
9489		-	business pursuant to this Section, report to the Department
9490		-	the following:
9491		-	(1) the number of employees and the location at which
9492		-	those employees are employed, both as of the end of each
9493		-	year;
9494		-	(2) the amount of additional new capital investment
9495		-	raised as of the end of each year, if any; and
9496		-	(3) the terms of any liquidity event occurring during
9497		-	such year; for the purposes of this Section, a "liquidity
9498		-	event" means any event that would be considered an exit
9499		-	for an illiquid investment, including any event that
9500		-	allows the equity holders of the business (or any material
9501		-	portion thereof) to cash out some or all of their
9502		-	respective equity interests.
9503		-	(Source: P.A. 101-81, eff. 7-12-19; 102-16, eff. 6-17-21.)
9504		-	ARTICLE 60. NEW MARKETS DEVELOPMENT PROGRAM
9505		-	Section 60-5. The New Markets Development Program Act is
9506		-	amended by changing Sections 5, 20, 25, 45, and 50 as follows:
9507		-
9508		-
9509		-	(20 ILCS 663/5)
9510		-	Sec. 5. Definitions. As used in this Act:
9511		-	"Applicable percentage" means 0% for each of the first 2
9512		-	credit allowance dates, 7% for the third credit allowance
9513		-	date, and 8% for the next 4 credit allowance dates.
9514		-	"Credit allowance date" means with respect to any
9515		-	qualified equity investment:
9516		-	(1) the date on which the investment is initially
9517		-	made; and
9518		-	(2) each of the 6 anniversary dates of that date
9519		-	thereafter.
9520		-	"Department" means the Department of Commerce and Economic
9521		-	Opportunity.
9522		-	"Long-term debt security" means any debt instrument issued
9523		-	by a qualified community development entity, at par value or a
9524		-	premium, with an original maturity date of at least 7 years
9525		-	from the date of its issuance, with no acceleration of
9526		-	repayment, amortization, or prepayment features prior to its
9527		-	original maturity date. Cumulative cash payments of interest
9528		-	on the qualified debt instrument during the period commencing
9529		-	with the issuance of the qualified debt instrument and ending
9530		-	with the seventh anniversary of its issuance shall not exceed
9531		-	the sum of such cash interest payments and the cumulative net
9532		-	income of the issuing community development entity for the
9533		-	same period. This definition in no way limits the holder's
9534		-
9535		-
9536		-	ability to accelerate payments on the debt instrument in
9537		-	situations where the issuer has defaulted on covenants
9538		-	designed to ensure compliance with this Act or Section 45D of
9539		-	the Internal Revenue Code of 1986, as amended.
9540		-	"Purchase price" means the amount paid to the issuer of a
9541		-	qualified equity investment for that qualified equity
9542		-	investment.
9543		-	"Qualified active low-income community business" has the
9544		-	meaning given to that term in Section 45D of the Internal
9545		-	Revenue Code of 1986, as amended; except that any business
9546		-	that derives or projects to derive 15% or more of its annual
9547		-	revenue from the rental or sale of real estate is not
9548		-	considered to be a qualified active low-income community
9549		-	business. This exception does not apply to a business that is
9550		-	controlled by or under common control with another business if
9551		-	the second business (i) does not derive or project to derive
9552		-	15% or more of its annual revenue from the rental or sale of
9553		-	real estate and (ii) is the primary tenant of the real estate
9554		-	leased from the initial business. A business shall be
9555		-	considered a qualified active low-income community business
9556		-	for the duration of the qualified community development
9557		-	entity's investment in or loan to the business if the entity
9558		-	reasonably expects, at the time it makes the investment or
9559		-	loan, that the business will continue to satisfy the
9560		-	requirements for being a qualified active low-income community
9561		-	business throughout the entire period of the investment or
9562		-
9563		-
9564		-	loan.
9565		-	"Qualified community development entity" has the meaning
9566		-	given to that term in Section 45D of the Internal Revenue Code
9567		-	of 1986, as amended; provided that such entity has entered
9568		-	into, or is controlled by an entity that has entered into, an
9569		-	allocation agreement with the Community Development Financial
9570		-	Institutions Fund of the U.S. Treasury Department with respect
9571		-	to credits authorized by Section 45D of the Internal Revenue
9572		-	Code of 1986, as amended, that includes the State of Illinois
9573		-	within the service area set forth in that allocation
9574		-	agreement.
9575		-	"Qualified equity investment" means any equity investment
9576		-	in, or long-term debt security issued by, a qualified
9577		-	community development entity that:
9578		-	(1) is acquired after the effective date of this Act
9579		-	at its original issuance solely in exchange for cash;
9580		-	(2) with respect to qualified equity investments made
9581		-	before January 1, 2024 2017, has at least 85% of its cash
9582		-	purchase price used by the issuer to make qualified
9583		-	low-income community investments in the State of Illinois,
9584		-	and, with respect to qualified equity investments made on
9585		-	or after January 1, 2024 2017, has 100% of the cash
9586		-	purchase price used by the issuer to make qualified
9587		-	low-income community investments in the State of Illinois;
9588		-	and
9589		-	(3) is designated by the issuer as a qualified equity
9590		-
9591		-
9592		-	investment under this Act; with respect to qualified
9593		-	equity investments made on or after January 1, 2024 2017,
9594		-	is designated by the issuer as a qualified equity
9595		-	investment under Section 45D of the Internal Revenue Code
9596		-	of 1986, as amended; and is certified by the Department as
9597		-	not exceeding the limitation contained in Section 20.
9598		-	This term includes any qualified equity investment that
9599		-	does not meet the provisions of item (1) of this definition if
9600		-	the investment was a qualified equity investment in the hands
9601		-	of a prior holder.
9602		-	"Qualified low-income community investment" means any
9603		-	capital or equity investment in, or loan to, any qualified
9604		-	active low-income community business. With respect to any one
9605		-	qualified active low-income community business, the maximum
9606		-	amount of qualified low-income community investments made in
9607		-	that business, on a collective basis with all of its
9608		-	affiliates that may be counted towards the satisfaction of
9609		-	paragraph (2) of the definition of qualified equity
9610		-	investment, shall be $10,000,000 whether issued to one or
9611		-	several qualified community development entities.
9612		-	"Tax credit" means a credit against any income, franchise,
9613		-	or insurance premium taxes, including insurance retaliatory
9614		-	taxes, otherwise due under Illinois law.
9615		-	"Taxpayer" means any individual or entity subject to any
9616		-	income, franchise, or insurance premium tax under Illinois
9617		-	law.
9618		-
9619		-
9620		-	(Source: P.A. 100-408, eff. 8-25-17.)
9621		-	(20 ILCS 663/20)
9622		-	Sec. 20. Annual cap on credits. The Department shall limit
9623		-	the monetary amount of qualified equity investments permitted
9624		-	under this Act to a level necessary to limit tax credit use at
9625		-	no more than (i) $20,000,000 in of tax credits for fiscal years
9626		-	beginning before July 1, 2023 and (ii) $25,000,000 in tax
9627		-	credits for fiscal years beginning on or after July 1, 2023 in
9628		-	any fiscal year. This limitation on qualified equity
9629		-	investments shall be based on the anticipated use of credits
9630		-	without regard to the potential for taxpayers to carry forward
9631		-	tax credits to later tax years.
9632		-	(Source: P.A. 100-408, eff. 8-25-17.)
9633		-	(20 ILCS 663/25)
9634		-	Sec. 25. Certification of qualified equity investments.
9635		-	(a) A qualified community development entity that seeks to
9636		-	have an equity investment or long-term debt security
9637		-	designated as a qualified equity investment and eligible for
9638		-	tax credits under this Section shall apply to the Department.
9639		-	The qualified community development entity must submit an
9640		-	application on a form that the Department provides that
9641		-	includes:
9642		-	(1) The name, address, tax identification number of
9643		-	the entity, and evidence of the entity's certification as
9644		-
9645		-
9646		-	a qualified community development entity.
9647		-	(2) A copy of the allocation agreement executed by the
9648		-	entity, or its controlling entity, and the Community
9649		-	Development Financial Institutions Fund.
9650		-	(3) A certificate executed by an executive officer of
9651		-	the entity attesting that the allocation agreement remains
9652		-	in effect and has not been revoked or cancelled by the
9653		-	Community Development Financial Institutions Fund.
9654		-	(4) A description of the proposed amount, structure,
9655		-	and purchaser of the equity investment or long-term debt
9656		-	security.
9657		-	(5) The name and tax identification number of any
9658		-	taxpayer eligible to utilize tax credits earned as a
9659		-	result of the issuance of the qualified equity investment.
9660		-	(6) Information regarding the proposed use of proceeds
9661		-	from the issuance of the qualified equity investment.
9662		-	(7) A nonrefundable application fee of $5,000. This
9663		-	fee shall be paid to the Department and shall be required
9664		-	of each application submitted.
9665		-	(8) With respect to qualified equity investments made
9666		-	on or after January 1, 2017, the amount of qualified
9667		-	equity investment authority the applicant agrees to
9668		-	designate as a federal qualified equity investment under
9669		-	Section 45D of the Internal Revenue Code, including a copy
9670		-	of the screen shot from the Community Development
9671		-	Financial Institutions Fund's Allocation Tracking System
9672		-
9673		-
9674		-	of the applicant's remaining federal qualified equity
9675		-	investment authority.
9676		-	(b) Within 30 days after receipt of a completed
9677		-	application containing the information necessary for the
9678		-	Department to certify a potential qualified equity investment,
9679		-	including the payment of the application fee, the Department
9680		-	shall grant or deny the application in full or in part. If the
9681		-	Department denies any part of the application, it shall inform
9682		-	the qualified community development entity of the grounds for
9683		-	the denial. If the qualified community development entity
9684		-	provides any additional information required by the Department
9685		-	or otherwise completes its application within 15 days of the
9686		-	notice of denial, the application shall be considered
9687		-	completed as of the original date of submission. If the
9688		-	qualified community development entity fails to provide the
9689		-	information or complete its application within the 15-day
9690		-	period, the application remains denied and must be resubmitted
9691		-	in full with a new submission date.
9692		-	(c) If the application is deemed complete, the Department
9693		-	shall certify the proposed equity investment or long-term debt
9694		-	security as a qualified equity investment that is eligible for
9695		-	tax credits under this Section, subject to the limitations
9696		-	contained in Section 20. The Department shall provide written
9697		-	notice of the certification to the qualified community
9698		-	development entity. The notice shall include the names of
9699		-	those taxpayers who are eligible to utilize the credits and
9700		-
9701		-
9702		-	their respective credit amounts. If the names of the taxpayers
9703		-	who are eligible to utilize the credits change due to a
9704		-	transfer of a qualified equity investment or a change in an
9705		-	allocation pursuant to Section 15, the qualified community
9706		-	development entity shall notify the Department of such change.
9707		-	(d) With respect to applications received before January
9708		-	1, 2017, the Department shall certify qualified equity
9709		-	investments in the order applications are received by the
9710		-	Department. Applications received on the same day shall be
9711		-	deemed to have been received simultaneously. For applications
9712		-	received on the same day and deemed complete, the Department
9713		-	shall certify, consistent with remaining tax credit capacity,
9714		-	qualified equity investments in proportionate percentages
9715		-	based upon the ratio of the amount of qualified equity
9716		-	investment requested in an application to the total amount of
9717		-	qualified equity investments requested in all applications
9718		-	received on the same day.
9719		-	(d-5) With respect to applications received on or after
9720		-	January 1, 2017, the Department shall certify applications by
9721		-	applicants that agree to designate qualified equity
9722		-	investments as federal qualified equity investments in
9723		-	accordance with item (8) of subsection (a) of this Section in
9724		-	proportionate percentages based upon the ratio of the amount
9725		-	of qualified equity investments requested in an application to
9726		-	be designated as federal qualified equity investments to the
9727		-	total amount of qualified equity investments to be designated
9728		-
9729		-
9730		-	as federal qualified equity investments requested in all
9731		-	applications received on the same day.
9732		-	(d-10) With respect to applications received on or after
9733		-	January 1, 2017, after complying with subsection (d-5), the
9734		-	Department shall certify the qualified equity investments of
9735		-	all other applicants, including the remaining qualified equity
9736		-	investment authority requested by applicants not designated as
9737		-	federal qualified equity investments in accordance with item
9738		-	(8) of subsection (a) of this Section, in proportionate
9739		-	percentages based upon the ratio of the amount of qualified
9740		-	equity investments requested in the applications to the total
9741		-	amount of qualified equity investments requested in all
9742		-	applications received on the same day.
9743		-	(e) Once the Department has certified qualified equity
9744		-	investments that, on a cumulative basis, are eligible for
9745		-	$20,000,000 in tax credits (for taxable years beginning before
9746		-	July 1, 2023) or $25,000,000 in tax credits (for taxable years
9747		-	beginning on or after July 1, 2023), the Department may not
9748		-	certify any more qualified equity investments. If a pending
9749		-	request cannot be fully certified, the Department shall
9750		-	certify the portion that may be certified unless the qualified
9751		-	community development entity elects to withdraw its request
9752		-	rather than receive partial credit.
9753		-	(f) Within 30 days after receiving notice of
9754		-	certification, the qualified community development entity
9755		-	shall (i) issue the qualified equity investment and receive
9756		-
9757		-
9758		-	cash in the amount of the certified amount and (ii) with
9759		-	respect to qualified equity investments made on or after
9760		-	January 1, 2017, if applicable, designate the required amount
9761		-	of qualified equity investment authority as a federal
9762		-	qualified equity investment. The qualified community
9763		-	development entity must provide the Department with evidence
9764		-	of the receipt of the cash investment within 10 business days
9765		-	after receipt and, with respect to qualified equity
9766		-	investments made on or after January 1, 2017, if applicable,
9767		-	provide evidence that the required amount of qualified equity
9768		-	investment authority was designated as a federal qualified
9769		-	equity investment. If the qualified community development
9770		-	entity does not receive the cash investment and issue the
9771		-	qualified equity investment within 30 days following receipt
9772		-	of the certification notice, the certification shall lapse and
9773		-	the entity may not issue the qualified equity investment
9774		-	without reapplying to the Department for certification. A
9775		-	certification that lapses reverts back to the Department and
9776		-	may be reissued only in accordance with the application
9777		-	process outline in this Section 25.
9778		-	(g) Allocation rounds enabled by this Act shall be applied
9779		-	for according to the following schedule:
9780		-	(1) on January 2, 2019, $125,000,000 of qualified
9781		-	equity investments; and
9782		-	(2) not less than 45 days after but not more than 90
9783		-	days after the Community Development Financial
9784		-
9785		-
9786		-	Institutions Fund of the United States Department of the
9787		-	Treasury announces allocation awards under a Notice of
9788		-	Funding Availability that is published in the Federal
9789		-	Register after September 6, 2019, $125,000,000 of
9790		-	qualified equity investments; and .
9791		-	(3) on or after January 1, 2024, but not more than 120
9792		-	days after the Community Development Financial
9793		-	Institutions Fund of the United States Department of the
9794		-	Treasury announces allocation awards under a Notice of
9795		-	Funding Availability that was published in the Federal
9796		-	Register on November 22, 2022, $312,500,000 of qualified
9797		-	equity investments.
9798		-	(Source: P.A. 100-408, eff. 8-25-17; 101-604, eff. 12-13-19.)
9799		-	(20 ILCS 663/45)
9800		-	Sec. 45. Examination and Rulemaking.
9801		-	(a) The Department may conduct examinations to verify that
9802		-	the tax credits under this Act have been received and applied
9803		-	according to the requirements of this Act and to verify that no
9804		-	event has occurred that would result in a recapture of tax
9805		-	credits under Section 40.
9806		-	(b) Neither the Department nor the Department of Revenue
9807		-	shall have the authority to promulgate rules under the Act,
9808		-	but, with respect to qualified equity investments issued
9809		-	before January 1, 2024, the Department and the Department of
9810		-	Revenue shall have the authority to issue advisory letters to
9811		-
9812		-
9813		-	individual qualified community development entities and their
9814		-	investors that are limited to the specific facts outlined in
9815		-	an advisory letter request from a qualified community
9816		-	development entity. Such rulings cannot be relied upon by any
9817		-	person or entity other than the qualified community
9818		-	development entity that requested the letter and the taxpayers
9819		-	that are entitled to any tax credits generated from
9820		-	investments in such entity. For purposes of this subsection,
9821		-	"rules" is given the meaning contained in Section 1-70 of the
9822		-	Illinois Administrative Procedure Act.
9823		-	(c) In rendering advisory letters and making other
9824		-	determinations under this Act prior to January 1, 2024, to the
9825		-	extent applicable, the Department and the Department of
9826		-	Revenue shall look for guidance to Section 45D of the Internal
9827		-	Revenue Code of 1986, as amended, and the rules and
9828		-	regulations issued thereunder.
9829		-	(d) It is the intent of the General Assembly that
9830		-	qualified equity investment structures allowed pursuant to
9831		-	advisory letters and other determinations by the Department
9832		-	and the Department of Revenue prior to January 1, 2024 shall be
9833		-	allowed and that qualified community development entities may
9834		-	rely on the rules and regulations issued under Section 45D of
9835		-	the Internal Revenue Code of 1986, as amended, where
9836		-	applicable.
9837		-	(Source: P.A. 95-1024, eff. 12-31-08.)
9838		-
9839		-
9840		-	(20 ILCS 663/50)
9841		-	Sec. 50. Sunset. For fiscal years following fiscal year
9842		-	2031 2024, qualified equity investments shall not be made
9843		-	under this Act unless reauthorization is made pursuant to this
9844		-	Section. For all fiscal years following fiscal year 2031 2024,
9845		-	unless the General Assembly adopts a joint resolution granting
9846		-	authority to the Department to approve qualified equity
9847		-	investments for the Illinois new markets development program
9848		-	and clearly describing the amount of tax credits available for
9849		-	the next fiscal year, or otherwise complies with the
9850		-	provisions of this Section, no qualified equity investments
9851		-	may be permitted to be made under this Act. The amount of
9852		-	available tax credits contained in such a resolution shall not
9853		-	exceed the limitation provided under Section 20. Nothing in
9854		-	this Section precludes a taxpayer who makes a qualified equity
9855		-	investment prior to the expiration of authority to make
9856		-	qualified equity investments from claiming tax credits
9857		-	relating to that qualified equity investment for each
9858		-	applicable credit allowance date.
9859		-	(Source: P.A. 102-16, eff. 6-17-21.)
9860		-	ARTICLE 65. STANDARD EXEMPTION
9861		-	Section 65-5. The Illinois Income Tax Act is amended by
9862		-	changing Section 204 as follows:
9863		-
9864		-
9865		-	(35 ILCS 5/204) (from Ch. 120, par. 2-204)
9866		-	Sec. 204. Standard exemption.
9867		-	(a) Allowance of exemption. In computing net income under
9868		-	this Act, there shall be allowed as an exemption the sum of the
9869		-	amounts determined under subsections (b), (c) and (d),
9870		-	multiplied by a fraction the numerator of which is the amount
9871		-	of the taxpayer's base income allocable to this State for the
9872		-	taxable year and the denominator of which is the taxpayer's
9873		-	total base income for the taxable year.
9874		-	(b) Basic amount. For the purpose of subsection (a) of
9875		-	this Section, except as provided by subsection (a) of Section
9876		-	205 and in this subsection, each taxpayer shall be allowed a
9877		-	basic amount of $1000, except that for corporations the basic
9878		-	amount shall be zero for tax years ending on or after December
9879		-	31, 2003, and for individuals the basic amount shall be:
9880		-	(1) for taxable years ending on or after December 31,
9881		-	1998 and prior to December 31, 1999, $1,300;
9882		-	(2) for taxable years ending on or after December 31,
9883		-	1999 and prior to December 31, 2000, $1,650;
9884		-	(3) for taxable years ending on or after December 31,
9885		-	2000 and prior to December 31, 2012, $2,000;
9886		-	(4) for taxable years ending on or after December 31,
9887		-	2012 and prior to December 31, 2013, $2,050;
9888		-	(5) for taxable years ending on or after December 31,
9889		-	2013 and on or before December 31, 2022 December 31, 2023,
9890		-	$2,050 plus the cost-of-living adjustment under subsection
9891		-
9892		-
9893		-	(d-5); .
9894		-	(6) for taxable years ending on or after December 31,
9895		-	2023 and prior to December 31, 2024, $2,425;
9896		-	(7) for taxable years ending on or after December 31,
9897		-	2024 and on or before December 31, 2028, $2,050 plus the
9898		-	cost-of-living adjustment under subsection (d-5).
9899		-	For taxable years ending on or after December 31, 1992, a
9900		-	taxpayer whose Illinois base income exceeds the basic amount
9901		-	and who is claimed as a dependent on another person's tax
9902		-	return under the Internal Revenue Code shall not be allowed
9903		-	any basic amount under this subsection.
9904		-	(c) Additional amount for individuals. In the case of an
9905		-	individual taxpayer, there shall be allowed for the purpose of
9906		-	subsection (a), in addition to the basic amount provided by
9907		-	subsection (b), an additional exemption equal to the basic
9908		-	amount for each exemption in excess of one allowable to such
9909		-	individual taxpayer for the taxable year under Section 151 of
9910		-	the Internal Revenue Code.
9911		-	(d) Additional exemptions for an individual taxpayer and
9912		-	his or her spouse. In the case of an individual taxpayer and
9913		-	his or her spouse, he or she shall each be allowed additional
9914		-	exemptions as follows:
9915		-	(1) Additional exemption for taxpayer or spouse 65
9916		-	years of age or older.
9917		-	(A) For taxpayer. An additional exemption of
9918		-	$1,000 for the taxpayer if he or she has attained the
9919		-
9920		-
9921		-	age of 65 before the end of the taxable year.
9922		-	(B) For spouse when a joint return is not filed. An
9923		-	additional exemption of $1,000 for the spouse of the
9924		-	taxpayer if a joint return is not made by the taxpayer
9925		-	and his spouse, and if the spouse has attained the age
9926		-	of 65 before the end of such taxable year, and, for the
9927		-	calendar year in which the taxable year of the
9928		-	taxpayer begins, has no gross income and is not the
9929		-	dependent of another taxpayer.
9930		-	(2) Additional exemption for blindness of taxpayer or
9931		-	spouse.
9932		-	(A) For taxpayer. An additional exemption of
9933		-	$1,000 for the taxpayer if he or she is blind at the
9934		-	end of the taxable year.
9935		-	(B) For spouse when a joint return is not filed. An
9936		-	additional exemption of $1,000 for the spouse of the
9937		-	taxpayer if a separate return is made by the taxpayer,
9938		-	and if the spouse is blind and, for the calendar year
9939		-	in which the taxable year of the taxpayer begins, has
9940		-	no gross income and is not the dependent of another
9941		-	taxpayer. For purposes of this paragraph, the
9942		-	determination of whether the spouse is blind shall be
9943		-	made as of the end of the taxable year of the taxpayer;
9944		-	except that if the spouse dies during such taxable
9945		-	year such determination shall be made as of the time of
9946		-	such death.
9947		-
9948		-
9949		-	(C) Blindness defined. For purposes of this
9950		-	subsection, an individual is blind only if his or her
9951		-	central visual acuity does not exceed 20/200 in the
9952		-	better eye with correcting lenses, or if his or her
9953		-	visual acuity is greater than 20/200 but is
9954		-	accompanied by a limitation in the fields of vision
9955		-	such that the widest diameter of the visual fields
9956		-	subtends an angle no greater than 20 degrees.
9957		-	(d-5) Cost-of-living adjustment. For purposes of item (5)
9958		-	of subsection (b), the cost-of-living adjustment for any
9959		-	calendar year and for taxable years ending prior to the end of
9960		-	the subsequent calendar year is equal to $2,050 times the
9961		-	percentage (if any) by which:
9962		-	(1) the Consumer Price Index for the preceding
9963		-	calendar year, exceeds
9964		-	(2) the Consumer Price Index for the calendar year
9965		-	2011.
9966		-	The Consumer Price Index for any calendar year is the
9967		-	average of the Consumer Price Index as of the close of the
9968		-	12-month period ending on August 31 of that calendar year.
9969		-	The term "Consumer Price Index" means the last Consumer
9970		-	Price Index for All Urban Consumers published by the United
9971		-	States Department of Labor or any successor agency.
9972		-	If any cost-of-living adjustment is not a multiple of $25,
9973		-	that adjustment shall be rounded to the next lowest multiple
9974		-	of $25.
9975		-
9976		-
9977		-	(e) Cross reference. See Article 3 for the manner of
9978		-	determining base income allocable to this State.
9979		-	(f) Application of Section 250. Section 250 does not apply
9980		-	to the amendments to this Section made by Public Act 90-613.
9981		-	(g) Notwithstanding any other provision of law, for
9982		-	taxable years beginning on or after January 1, 2017, no
9983		-	taxpayer may claim an exemption under this Section if the
9984		-	taxpayer's adjusted gross income for the taxable year exceeds
9985		-	(i) $500,000, in the case of spouses filing a joint federal tax
9986		-	return or (ii) $250,000, in the case of all other taxpayers.
9987		-	(Source: P.A. 100-22, eff. 7-6-17; 100-865, eff. 8-14-18.)
9988		-	ARTICLE 70. AVIATION FUEL
9989		-	Section 70-5. The Use Tax Act is amended by changing
9990		-	Section 3-87 as follows:
9991		-	(35 ILCS 105/3-87)
9992		-	Sec. 3-87. Sustainable Aviation Fuel Purchase Credit.
9993		-	(a) From July 1, 2023 through December 31, 2032 June 1,
9994		-	2023 through January 1, 2033, sustainable aviation fuel sold
9995		-	to or used by an air common carrier, certified by the carrier
9996		-	to the Department to be used in Illinois, earns a credit in the
9997		-	amount of $1.50 per gallon of sustainable aviation fuel
9998		-	purchased. The credit earned shall be referred to as the
9999		-	Sustainable Aviation Fuel Purchase Credit.
10000		-
10001		-
10002		-	Only that portion of each gallon of aviation fuel that
10003		-	consists of sustainable aviation fuel, as defined in this
10004		-	Section, is eligible to earn the credit.
10005		-	The credit is earned at the time sustainable aviation fuel
10006		-	is purchased for use in Illinois. The amount of credit that is
10007		-	earned is based on the number of whole gallons of sustainable
10008		-	aviation fuel purchased for use in Illinois. Partial gallons
10009		-	will not earn a credit. Credits may be used at the same time as
10010		-	they are earned.
10011		-	For a sale or use of aviation fuel to qualify to earn the
10012		-	Sustainable Aviation Fuel Purchase Credit, taxpayers must
10013		-	retain in their books and records a certification from the
10014		-	producer of the aviation fuel that the aviation fuel sold or
10015		-	used and for which a sustainable aviation fuel purchase credit
10016		-	was earned meets the definition of sustainable aviation fuel
10017		-	under this Section. The documentation must include detail
10018		-	sufficient for the Department to determine the number of
10019		-	gallons of sustainable aviation fuel sold or used.
10020		-	A Sustainable Aviation Fuel Purchase Credit earned by an
10021		-	air common carrier expires on December 31, 2032. The
10022		-	Sustainable Aviation Fuel Purchase Credit is non-transferable
10023		-	and non-refundable. Taxpayers shall account for the earning
10024		-	and usage of Sustainable Aviation Fuel Purchase Credits on
10025		-	each monthly return filed with the Department, as deemed
10026		-	necessary by the Department.
10027		-	The purchaser of sustainable aviation fuel shall certify
10028		-
10029		-
10030		-	to the seller of the aviation fuel that the purchaser is
10031		-	satisfying all or part of its liability for the 6.25% tax under
10032		-	the Use Tax Act or the Service Use Tax Act that is due on the
10033		-	purchase of aviation fuel by use of the sustainable aviation
10034		-	fuel purchase credit.
10035		-	The Sustainable Aviation Fuel Purchase Credit
10036		-	certification must be dated and shall include the name and
10037		-	address of the purchaser, the purchaser's registration number,
10038		-	if registered, the credit being applied, and a statement that
10039		-	the State Use Tax or Service Use Tax use tax or service use tax
10040		-	liability is being satisfied with the air common carrier's
10041		-	accumulated sustainable aviation fuel purchase credit.
10042		-	An air common carrier-purchaser of aviation fuel may
10043		-	utilize the Sustainable Aviation Fuel Purchase Credit in
10044		-	satisfaction of the 6.25% tax arising from the purchase of
10045		-	aviation fuel, but not in satisfaction of penalty or interest.
10046		-	Until January 1, 2033 July 1, 2033, on an annual basis,
10047		-	running from January through December each year, no credit may
10048		-	be earned by an air common carrier for soybean oil-derived
10049		-	sustainable aviation fuel once air common carriers in this
10050		-	State have collectively purchased sustainable aviation fuel
10051		-	containing 10,000,000 gallons of soybean oil feedstock. If, in
10052		-	any year, air common carriers collectively purchase
10053		-	sustainable aviation fuel containing more than 10,000,000
10054		-	gallons of soybean oil feedstock for use in this State, then,
10055		-	in the month in which taxpayer reporting shows that the credit
10056		-
10057		-
10058		-	earned from these purchases exceeds the cap, the Department
10059		-	shall first determine the remaining number of gallons of
10060		-	soybean oil feedstock available to earn the credit for that
10061		-	year by subtracting from 10,000,000 the number of gallons of
10062		-	soybean oil feedstock collectively purchased that year based
10063		-	on the prior month's taxpayer reporting. The Department shall
10064		-	then allocate the credit from these remaining gallons of
10065		-	soybean oil feedstock available to earn the credit for that
10066		-	year by allowing credit to each air common carrier in the same
10067		-	proportion as the number of gallons of soybean oil feedstock
10068		-	reported as having been purchased by each air common carrier
10069		-	during the month in which the cap is exceeded is to all of the
10070		-	gallons of soybean oil feedstock reported as having been
10071		-	purchased during that month. The earning of any credit in
10072		-	excess of this shall be disallowed for the remainder of the
10073		-	year. For any credit that was used, the earning of which was
10074		-	disallowed in the process described in this paragraph, any
10075		-	resulting tax shall be due on or before April 20th of the year
10076		-	following the year in which the 10,000,000 gallon cap on
10077		-	soybean oil feedstock was exceeded and shall be reported and
10078		-	paid on the aviation fuel tax return. Any credit that is earned
10079		-	for the purchase of soybean oil feedstock but not timely
10080		-	reported in a year in which the cap is exceeded is disallowed.
10081		-	A Sustainable Aviation Fuel Purchase Credit certification
10082		-	provided by the air common carrier may be used to satisfy the
10083		-	retailer's or serviceman's 6.25% tax liability on aviation
10084		-
10085		-
10086		-	fuel under the Retailers' Occupation Tax Act or Service
10087		-	Occupation Tax Act for the credit claimed.
10088		-	(b) As used in this Section, "sustainable aviation fuel"
10089		-	means liquid fuel that meets the criteria set forth in
10090		-	subsections (d) and (e) of Section 40B of the federal Internal
10091		-	Revenue Code of 1986 or:
10092		-	(1) consists of synthesized hydrocarbons and meets the
10093		-	requirements of:
10094		-	(A) the American Society for Testing and Materials
10095		-	International Standard D7566; or
10096		-	(B) the Fischer-Tropsch provisions of American
10097		-	Society for Testing and Materials International
10098		-	Standard D1655, Annex A1;
10099		-	(2) prior to June 1, 2028, is derived from biomass
10100		-	resources, waste streams, renewable energy sources, or
10101		-	gaseous carbon oxides, and beginning on June 1, 2028 is
10102		-	derived from domestic biomass resources;
10103		-	(3) is not derived from any palm derivatives; and
10104		-	(4) the fuel production pathway for the sustainable
10105		-	aviation fuel achieves at least a 50% lifecycle greenhouse
10106		-	gas emissions reduction in comparison with petroleum-based
10107		-	jet fuel, as determined by a test that shows:
10108		-	(A) that the fuel production pathway achieves at
10109		-	least a 50% reduction of the aggregate attributional
10110		-	core lifecycle emissions and the positive induced land
10111		-	use change values under the lifecycle methodology for
10112		-
10113		-
10114		-	sustainable aviation fuels adopted by the
10115		-	International Civil Aviation Organization with the
10116		-	agreement of the United States; or
10117		-	(B) that the fuel production pathway achieves at
10118		-	least a 50% reduction of the aggregate attributional
10119		-	core lifecycle greenhouse gas emissions values
10120		-	utilizing the most recent version of Argonne National
10121		-	Laboratory's GREET model, inclusive of agricultural
10122		-	practices and carbon capture and sequestration.
10123		-	(Source: P.A. 102-1125, eff. 2-3-23.)
10124		-	Section 70-10. The Service Use Tax Act is amended by
10125		-	changing Section 3-72 as follows:
10126		-	(35 ILCS 110/3-72)
10127		-	Sec. 3-72. Sustainable Aviation Fuel Purchase Credit.
10128		-	(a) From July 1, 2023 through December 31, 2032 June 1,
10129		-	2023 through January 1, 2033, sustainable aviation fuel sold
10130		-	to or used by an air common carrier, certified by the carrier
10131		-	to the Department to be used in Illinois, earns a credit in the
10132		-	amount of $1.50 per gallon of sustainable aviation fuel
10133		-	purchased. The credit earned shall be referred to as the
10134		-	Sustainable Aviation Fuel Purchase Credit.
10135		-	Only that portion of each gallon of aviation fuel that
10136		-	consists of sustainable aviation fuel, as defined in this
10137		-	Section, is eligible to earn the credit.
10138		-
10139		-
10140		-	The credit is earned at the time sustainable aviation fuel
10141		-	is purchased for use in Illinois. The amount of credit that is
10142		-	earned is based on the number of whole gallons of sustainable
10143		-	aviation fuel purchased for use in Illinois. Partial gallons
10144		-	will not earn a credit. Credits may be used at the same time as
10145		-	they are earned.
10146		-	For a sale or use of aviation fuel to qualify to earn the
10147		-	Sustainable Aviation Fuel Purchase Credit, taxpayers must
10148		-	retain in their books and records a certification from the
10149		-	producer of the aviation fuel that the aviation fuel sold or
10150		-	used and for which a sustainable aviation fuel purchase credit
10151		-	was earned meets the definition of sustainable aviation fuel
10152		-	under this Section. The documentation must include detail
10153		-	sufficient for the Department to determine the number of
10154		-	gallons of sustainable aviation fuel sold or used.
10155		-	A Sustainable Aviation Fuel Purchase Credit earned by an
10156		-	air common carrier expires on December 31, 2032. The
10157		-	Sustainable Aviation Fuel Purchase Credit is a
10158		-	non-transferable and non-refundable credit. Taxpayers shall
10159		-	account for the earning and usage of Sustainable Aviation Fuel
10160		-	Purchase Credits on each monthly return filed with the
10161		-	Department, as deemed necessary by the Department.
10162		-	The purchaser of sustainable aviation fuel shall certify
10163		-	to the seller of the aviation fuel that the purchaser is
10164		-	satisfying all or part of its liability for the 6.25% tax under
10165		-	the Use Tax Act or the Service Use Tax Act that is due on the
10166		-
10167		-
10168		-	purchase of aviation fuel by use of the sustainable aviation
10169		-	fuel purchase credit.
10170		-	The Sustainable Aviation Fuel Purchase Credit
10171		-	certification must be dated and shall include the name and
10172		-	address of the purchaser, the purchaser's registration number,
10173		-	if registered, the credit being applied, and a statement that
10174		-	the State Use Tax or Service Use Tax use tax or service use tax
10175		-	liability is being satisfied with the air common carrier's
10176		-	accumulated sustainable aviation fuel purchase credit.
10177		-	An air common carrier-purchaser of aviation fuel may
10178		-	utilize the Sustainable Aviation Fuel Purchase Credit in
10179		-	satisfaction of the 6.25% tax arising from the purchase of
10180		-	aviation fuel, but not in satisfaction of penalty or interest.
10181		-	Until January 1, 2033 July 1, 2033, on an annual basis
10182		-	running from January through December each year, no credit may
10183		-	be earned by an air common carrier for soybean oil-derived
10184		-	sustainable aviation fuel once air common carriers in this
10185		-	State have collectively purchased sustainable aviation fuel
10186		-	containing 10,000,000 gallons of soybean oil feedstock. If, in
10187		-	any year, air common carriers collectively purchase
10188		-	sustainable aviation fuel containing more than 10,000,000
10189		-	gallons of soybean oil feedstock for use in this State, then,
10190		-	in the month in which taxpayer reporting shows that the credit
10191		-	earned from these purchases exceeds the cap, the Department
10192		-	shall first determine the remaining number of gallons of
10193		-	soybean oil feedstock available to earn the credit for that
10194		-
10195		-
10196		-	year by subtracting from 10,000,000 the number of gallons of
10197		-	soybean oil feedstock collectively purchased that year based
10198		-	on the prior month's taxpayer reporting. The Department shall
10199		-	then allocate the credit from these remaining gallons of
10200		-	soybean oil feedstock available to earn the credit for that
10201		-	year by allowing credit to each air common carrier in the same
10202		-	proportion as the number of gallons of soybean oil feedstock
10203		-	reported as having been purchased by each air common carrier
10204		-	during the month in which the cap is exceeded is to all of the
10205		-	gallons of soybean oil feedstock reported as having been
10206		-	purchased during that month. The earning of any credit in
10207		-	excess of this shall be disallowed for the remainder of the
10208		-	year. For any credit that was used, the earning of which was
10209		-	disallowed in the process described in this paragraph, any
10210		-	resulting tax shall be due on or before April 20th of the year
10211		-	following the year in which the 10,000,000 gallon cap on
10212		-	soybean oil feedstock was exceeded and shall be reported and
10213		-	paid on the aviation fuel tax return. Any credit that is earned
10214		-	for the purchase of soybean oil feedstock but not timely
10215		-	reported in a year in which the cap is exceeded is disallowed.
10216		-	A Sustainable Aviation Fuel Purchase Credit certification
10217		-	provided by the air common carrier may be used to satisfy the
10218		-	retailer's or serviceman's 6.25% tax liability on aviation
10219		-	fuel under the Retailers' Occupation Tax Act or Service
10220		-	Occupation Tax Act for the credit claimed.
10221		-	(b) As used in this Section, "sustainable aviation fuel"
10222		-
10223		-
10224		-	means liquid fuel that meets the criteria set forth in
10225		-	subsections (d) and (e) of Section 40B of the federal Internal
10226		-	Revenue Code of 1986 or:
10227		-	(1) consists of synthesized hydrocarbons and meets the
10228		-	requirements of:
10229		-	(A) the American Society for Testing and Materials
10230		-	International Standard D7566; or
10231		-	(B) the Fischer-Tropsch provisions of American
10232		-	Society for Testing and Materials International
10233		-	Standard D1655, Annex A1;
10234		-	(2) prior to June 1, 2028, is derived from biomass
10235		-	resources, waste streams, renewable energy sources, or
10236		-	gaseous carbon oxides, and beginning on June 1, 2028 is
10237		-	derived from domestic biomass resources;
10238		-	(3) is not derived from any palm derivatives; and
10239		-	(4) the fuel production pathway for the sustainable
10240		-	aviation fuel achieves at least a 50% lifecycle greenhouse
10241		-	gas emissions reduction in comparison with petroleum-based
10242		-	jet fuel, as determined by a test that shows:
10243		-	(A) that the fuel production pathway achieves at
10244		-	least a 50% reduction of the aggregate attributional
10245		-	core lifecycle emissions and the positive induced land
10246		-	use change values under the lifecycle methodology for
10247		-	sustainable aviation fuels adopted by the
10248		-	International Civil Aviation Organization with the
10249		-	agreement of the United States; or
10250		-
10251		-
10252		-	(B) that the fuel production pathway achieves at
10253		-	least a 50% reduction of the aggregate attributional
10254		-	core lifecycle greenhouse gas emissions values
10255		-	utilizing the most recent version of Argonne National
10256		-	Laboratory's GREET model, inclusive of agricultural
10257		-	practices and carbon capture and sequestration.
10258		-	(Source: P.A. 102-1125, eff. 2-3-23.)
10259		-	Section 70-15. The Service Occupation Tax Act is amended
10260		-	by changing Section 9 as follows:
10261		-	(35 ILCS 115/9) (from Ch. 120, par. 439.109)
10262		-	Sec. 9. Each serviceman required or authorized to collect
10263		-	the tax herein imposed shall pay to the Department the amount
10264		-	of such tax at the time when he is required to file his return
10265		-	for the period during which such tax was collectible, less a
10266		-	discount of 2.1% prior to January 1, 1990, and 1.75% on and
10267		-	after January 1, 1990, or $5 per calendar year, whichever is
10268		-	greater, which is allowed to reimburse the serviceman for
10269		-	expenses incurred in collecting the tax, keeping records,
10270		-	preparing and filing returns, remitting the tax and supplying
10271		-	data to the Department on request. When determining the
10272		-	discount allowed under this Section, servicemen shall include
10273		-	the amount of tax that would have been due at the 1% rate but
10274		-	for the 0% rate imposed under this amendatory Act of the 102nd
10275		-	General Assembly. The discount under this Section is not
10276		-
10277		-
10278		-	allowed for the 1.25% portion of taxes paid on aviation fuel
10279		-	that is subject to the revenue use requirements of 49 U.S.C.
10280		-	47107(b) and 49 U.S.C. 47133. The discount allowed under this
10281		-	Section is allowed only for returns that are filed in the
10282		-	manner required by this Act. The Department may disallow the
10283		-	discount for servicemen whose certificate of registration is
10284		-	revoked at the time the return is filed, but only if the
10285		-	Department's decision to revoke the certificate of
10286		-	registration has become final.
10287		-	Where such tangible personal property is sold under a
10288		-	conditional sales contract, or under any other form of sale
10289		-	wherein the payment of the principal sum, or a part thereof, is
10290		-	extended beyond the close of the period for which the return is
10291		-	filed, the serviceman, in collecting the tax may collect, for
10292		-	each tax return period, only the tax applicable to the part of
10293		-	the selling price actually received during such tax return
10294		-	period.
10295		-	Except as provided hereinafter in this Section, on or
10296		-	before the twentieth day of each calendar month, such
10297		-	serviceman shall file a return for the preceding calendar
10298		-	month in accordance with reasonable rules and regulations to
10299		-	be promulgated by the Department of Revenue. Such return shall
10300		-	be filed on a form prescribed by the Department and shall
10301		-	contain such information as the Department may reasonably
10302		-	require. The return shall include the gross receipts which
10303		-	were received during the preceding calendar month or quarter
10304		-
10305		-
10306		-	on the following items upon which tax would have been due but
10307		-	for the 0% rate imposed under this amendatory Act of the 102nd
10308		-	General Assembly: (i) food for human consumption that is to be
10309		-	consumed off the premises where it is sold (other than
10310		-	alcoholic beverages, food consisting of or infused with adult
10311		-	use cannabis, soft drinks, and food that has been prepared for
10312		-	immediate consumption); and (ii) food prepared for immediate
10313		-	consumption and transferred incident to a sale of service
10314		-	subject to this Act or the Service Use Tax Act by an entity
10315		-	licensed under the Hospital Licensing Act, the Nursing Home
10316		-	Care Act, the Assisted Living and Shared Housing Act, the
10317		-	ID/DD Community Care Act, the MC/DD Act, the Specialized
10318		-	Mental Health Rehabilitation Act of 2013, or the Child Care
10319		-	Act of 1969, or an entity that holds a permit issued pursuant
10320		-	to the Life Care Facilities Act. The return shall also include
10321		-	the amount of tax that would have been due on the items listed
10322		-	in the previous sentence but for the 0% rate imposed under this
10323		-	amendatory Act of the 102nd General Assembly.
10324		-	On and after January 1, 2018, with respect to servicemen
10325		-	whose annual gross receipts average $20,000 or more, all
10326		-	returns required to be filed pursuant to this Act shall be
10327		-	filed electronically. Servicemen who demonstrate that they do
10328		-	not have access to the Internet or demonstrate hardship in
10329		-	filing electronically may petition the Department to waive the
10330		-	electronic filing requirement.
10331		-	The Department may require returns to be filed on a
10332		-
10333		-
10334		-	quarterly basis. If so required, a return for each calendar
10335		-	quarter shall be filed on or before the twentieth day of the
10336		-	calendar month following the end of such calendar quarter. The
10337		-	taxpayer shall also file a return with the Department for each
10338		-	of the first two months of each calendar quarter, on or before
10339		-	the twentieth day of the following calendar month, stating:
10340		-	1. The name of the seller;
10341		-	2. The address of the principal place of business from
10342		-	which he engages in business as a serviceman in this
10343		-	State;
10344		-	3. The total amount of taxable receipts received by
10345		-	him during the preceding calendar month, including
10346		-	receipts from charge and time sales, but less all
10347		-	deductions allowed by law;
10348		-	4. The amount of credit provided in Section 2d of this
10349		-	Act;
10350		-	5. The amount of tax due;
10351		-	5-5. The signature of the taxpayer; and
10352		-	6. Such other reasonable information as the Department
10353		-	may require.
10354		-	Each serviceman required or authorized to collect the tax
10355		-	herein imposed on aviation fuel acquired as an incident to the
10356		-	purchase of a service in this State during the preceding
10357		-	calendar month shall, instead of reporting and paying tax as
10358		-	otherwise required by this Section, report and pay such tax on
10359		-	a separate aviation fuel tax return. The requirements related
10360		-
10361		-
10362		-	to the return shall be as otherwise provided in this Section.
10363		-	Notwithstanding any other provisions of this Act to the
10364		-	contrary, servicemen transferring aviation fuel incident to
10365		-	sales of service shall file all aviation fuel tax returns and
10366		-	shall make all aviation fuel tax payments by electronic means
10367		-	in the manner and form required by the Department. For
10368		-	purposes of this Section, "aviation fuel" means jet fuel and
10369		-	aviation gasoline.
10370		-	If a taxpayer fails to sign a return within 30 days after
10371		-	the proper notice and demand for signature by the Department,
10372		-	the return shall be considered valid and any amount shown to be
10373		-	due on the return shall be deemed assessed.
10374		-	Notwithstanding any other provision of this Act to the
10375		-	contrary, servicemen subject to tax on cannabis shall file all
10376		-	cannabis tax returns and shall make all cannabis tax payments
10377		-	by electronic means in the manner and form required by the
10378		-	Department.
10379		-	Prior to October 1, 2003, and on and after September 1,
10380		-	2004 a serviceman may accept a Manufacturer's Purchase Credit
10381		-	certification from a purchaser in satisfaction of Service Use
10382		-	Tax as provided in Section 3-70 of the Service Use Tax Act if
10383		-	the purchaser provides the appropriate documentation as
10384		-	required by Section 3-70 of the Service Use Tax Act. A
10385		-	Manufacturer's Purchase Credit certification, accepted prior
10386		-	to October 1, 2003 or on or after September 1, 2004 by a
10387		-	serviceman as provided in Section 3-70 of the Service Use Tax
10388		-
10389		-
10390		-	Act, may be used by that serviceman to satisfy Service
10391		-	Occupation Tax liability in the amount claimed in the
10392		-	certification, not to exceed 6.25% of the receipts subject to
10393		-	tax from a qualifying purchase. A Manufacturer's Purchase
10394		-	Credit reported on any original or amended return filed under
10395		-	this Act after October 20, 2003 for reporting periods prior to
10396		-	September 1, 2004 shall be disallowed. Manufacturer's Purchase
10397		-	Credit reported on annual returns due on or after January 1,
10398		-	2005 will be disallowed for periods prior to September 1,
10399		-	2004. No Manufacturer's Purchase Credit may be used after
10400		-	September 30, 2003 through August 31, 2004 to satisfy any tax
10401		-	liability imposed under this Act, including any audit
10402		-	liability.
10403		-	Beginning on July 1, 2023 and through December 31, 2032, a
10404		-	serviceman may accept a Sustainable Aviation Fuel Purchase
10405		-	Credit certification from an air common carrier-purchaser in
10406		-	satisfaction of Service Use Tax as provided in Section 3-72 of
10407		-	the Service Use Tax Act if the purchaser provides the
10408		-	appropriate documentation as required by Section 3-72 of the
10409		-	Service Use Tax Act. A Sustainable Aviation Fuel Purchase
10410		-	Credit certification accepted by a serviceman in accordance
10411		-	with this paragraph may be used by that serviceman to satisfy
10412		-	service occupation tax liability (but not in satisfaction of
10413		-	penalty or interest) in the amount claimed in the
10414		-	certification, not to exceed 6.25% of the receipts subject to
10415		-	tax from a sale of aviation fuel. In addition, for a sale of
10416		-
10417		-
10418		-	aviation fuel to qualify to earn the Sustainable Aviation Fuel
10419		-	Purchase Credit, servicemen must retain in their books and
10420		-	records a certification from the producer of the aviation fuel
10421		-	that the aviation fuel sold by the serviceman and for which a
10422		-	sustainable aviation fuel purchase credit was earned meets the
10423		-	definition of sustainable aviation fuel under Section 3-72 of
10424		-	the Service Use Tax Act. The documentation must include detail
10425		-	sufficient for the Department to determine the number of
10426		-	gallons of sustainable aviation fuel sold.
10427		-	If the serviceman's average monthly tax liability to the
10428		-	Department does not exceed $200, the Department may authorize
10429		-	his returns to be filed on a quarter annual basis, with the
10430		-	return for January, February and March of a given year being
10431		-	due by April 20 of such year; with the return for April, May
10432		-	and June of a given year being due by July 20 of such year;
10433		-	with the return for July, August and September of a given year
10434		-	being due by October 20 of such year, and with the return for
10435		-	October, November and December of a given year being due by
10436		-	January 20 of the following year.
10437		-	If the serviceman's average monthly tax liability to the
10438		-	Department does not exceed $50, the Department may authorize
10439		-	his returns to be filed on an annual basis, with the return for
10440		-	a given year being due by January 20 of the following year.
10441		-	Such quarter annual and annual returns, as to form and
10442		-	substance, shall be subject to the same requirements as
10443		-	monthly returns.
10444		-
10445		-
10446		-	Notwithstanding any other provision in this Act concerning
10447		-	the time within which a serviceman may file his return, in the
10448		-	case of any serviceman who ceases to engage in a kind of
10449		-	business which makes him responsible for filing returns under
10450		-	this Act, such serviceman shall file a final return under this
10451		-	Act with the Department not more than 1 month after
10452		-	discontinuing such business.
10453		-	Beginning October 1, 1993, a taxpayer who has an average
10454		-	monthly tax liability of $150,000 or more shall make all
10455		-	payments required by rules of the Department by electronic
10456		-	funds transfer. Beginning October 1, 1994, a taxpayer who has
10457		-	an average monthly tax liability of $100,000 or more shall
10458		-	make all payments required by rules of the Department by
10459		-	electronic funds transfer. Beginning October 1, 1995, a
10460		-	taxpayer who has an average monthly tax liability of $50,000
10461		-	or more shall make all payments required by rules of the
10462		-	Department by electronic funds transfer. Beginning October 1,
10463		-	2000, a taxpayer who has an annual tax liability of $200,000 or
10464		-	more shall make all payments required by rules of the
10465		-	Department by electronic funds transfer. The term "annual tax
10466		-	liability" shall be the sum of the taxpayer's liabilities
10467		-	under this Act, and under all other State and local occupation
10468		-	and use tax laws administered by the Department, for the
10469		-	immediately preceding calendar year. The term "average monthly
10470		-	tax liability" means the sum of the taxpayer's liabilities
10471		-	under this Act, and under all other State and local occupation
10472		-
10473		-
10474		-	and use tax laws administered by the Department, for the
10475		-	immediately preceding calendar year divided by 12. Beginning
10476		-	on October 1, 2002, a taxpayer who has a tax liability in the
10477		-	amount set forth in subsection (b) of Section 2505-210 of the
10478		-	Department of Revenue Law shall make all payments required by
10479		-	rules of the Department by electronic funds transfer.
10480		-	Before August 1 of each year beginning in 1993, the
10481		-	Department shall notify all taxpayers required to make
10482		-	payments by electronic funds transfer. All taxpayers required
10483		-	to make payments by electronic funds transfer shall make those
10484		-	payments for a minimum of one year beginning on October 1.
10485		-	Any taxpayer not required to make payments by electronic
10486		-	funds transfer may make payments by electronic funds transfer
10487		-	with the permission of the Department.
10488		-	All taxpayers required to make payment by electronic funds
10489		-	transfer and any taxpayers authorized to voluntarily make
10490		-	payments by electronic funds transfer shall make those
10491		-	payments in the manner authorized by the Department.
10492		-	The Department shall adopt such rules as are necessary to
10493		-	effectuate a program of electronic funds transfer and the
10494		-	requirements of this Section.
10495		-	Where a serviceman collects the tax with respect to the
10496		-	selling price of tangible personal property which he sells and
10497		-	the purchaser thereafter returns such tangible personal
10498		-	property and the serviceman refunds the selling price thereof
10499		-	to the purchaser, such serviceman shall also refund, to the
10500		-
10501		-
10502		-	purchaser, the tax so collected from the purchaser. When
10503		-	filing his return for the period in which he refunds such tax
10504		-	to the purchaser, the serviceman may deduct the amount of the
10505		-	tax so refunded by him to the purchaser from any other Service
10506		-	Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
10507		-	Use Tax which such serviceman may be required to pay or remit
10508		-	to the Department, as shown by such return, provided that the
10509		-	amount of the tax to be deducted shall previously have been
10510		-	remitted to the Department by such serviceman. If the
10511		-	serviceman shall not previously have remitted the amount of
10512		-	such tax to the Department, he shall be entitled to no
10513		-	deduction hereunder upon refunding such tax to the purchaser.
10514		-	If experience indicates such action to be practicable, the
10515		-	Department may prescribe and furnish a combination or joint
10516		-	return which will enable servicemen, who are required to file
10517		-	returns hereunder and also under the Retailers' Occupation Tax
10518		-	Act, the Use Tax Act or the Service Use Tax Act, to furnish all
10519		-	the return information required by all said Acts on the one
10520		-	form.
10521		-	Where the serviceman has more than one business registered
10522		-	with the Department under separate registrations hereunder,
10523		-	such serviceman shall file separate returns for each
10524		-	registered business.
10525		-	Beginning January 1, 1990, each month the Department shall
10526		-	pay into the Local Government Tax Fund the revenue realized
10527		-	for the preceding month from the 1% tax imposed under this Act.
10528		-
10529		-
10530		-	Beginning January 1, 1990, each month the Department shall
10531		-	pay into the County and Mass Transit District Fund 4% of the
10532		-	revenue realized for the preceding month from the 6.25%
10533		-	general rate on sales of tangible personal property other than
10534		-	aviation fuel sold on or after December 1, 2019. This
10535		-	exception for aviation fuel only applies for so long as the
10536		-	revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
10537		-	47133 are binding on the State.
10538		-	Beginning August 1, 2000, each month the Department shall
10539		-	pay into the County and Mass Transit District Fund 20% of the
10540		-	net revenue realized for the preceding month from the 1.25%
10541		-	rate on the selling price of motor fuel and gasohol.
10542		-	Beginning January 1, 1990, each month the Department shall
10543		-	pay into the Local Government Tax Fund 16% of the revenue
10544		-	realized for the preceding month from the 6.25% general rate
10545		-	on transfers of tangible personal property other than aviation
10546		-	fuel sold on or after December 1, 2019. This exception for
10547		-	aviation fuel only applies for so long as the revenue use
10548		-	requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
10549		-	binding on the State.
10550		-	For aviation fuel sold on or after December 1, 2019, each
10551		-	month the Department shall pay into the State Aviation Program
10552		-	Fund 20% of the net revenue realized for the preceding month
10553		-	from the 6.25% general rate on the selling price of aviation
10554		-	fuel, less an amount estimated by the Department to be
10555		-	required for refunds of the 20% portion of the tax on aviation
10556		-
10557		-
10558		-	fuel under this Act, which amount shall be deposited into the
10559		-	Aviation Fuel Sales Tax Refund Fund. The Department shall only
10560		-	pay moneys into the State Aviation Program Fund and the
10561		-	Aviation Fuel Sales Tax Refund Fund under this Act for so long
10562		-	as the revenue use requirements of 49 U.S.C. 47107(b) and 49
10563		-	U.S.C. 47133 are binding on the State.
10564		-	Beginning August 1, 2000, each month the Department shall
10565		-	pay into the Local Government Tax Fund 80% of the net revenue
10566		-	realized for the preceding month from the 1.25% rate on the
10567		-	selling price of motor fuel and gasohol.
10568		-	Beginning October 1, 2009, each month the Department shall
10569		-	pay into the Capital Projects Fund an amount that is equal to
10570		-	an amount estimated by the Department to represent 80% of the
10571		-	net revenue realized for the preceding month from the sale of
10572		-	candy, grooming and hygiene products, and soft drinks that had
10573		-	been taxed at a rate of 1% prior to September 1, 2009 but that
10574		-	are now taxed at 6.25%.
10575		-	Beginning July 1, 2013, each month the Department shall
10576		-	pay into the Underground Storage Tank Fund from the proceeds
10577		-	collected under this Act, the Use Tax Act, the Service Use Tax
10578		-	Act, and the Retailers' Occupation Tax Act an amount equal to
10579		-	the average monthly deficit in the Underground Storage Tank
10580		-	Fund during the prior year, as certified annually by the
10581		-	Illinois Environmental Protection Agency, but the total
10582		-	payment into the Underground Storage Tank Fund under this Act,
10583		-	the Use Tax Act, the Service Use Tax Act, and the Retailers'
10584		-
10585		-
10586		-	Occupation Tax Act shall not exceed $18,000,000 in any State
10587		-	fiscal year. As used in this paragraph, the "average monthly
10588		-	deficit" shall be equal to the difference between the average
10589		-	monthly claims for payment by the fund and the average monthly
10590		-	revenues deposited into the fund, excluding payments made
10591		-	pursuant to this paragraph.
10592		-	Beginning July 1, 2015, of the remainder of the moneys
10593		-	received by the Department under the Use Tax Act, the Service
10594		-	Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
10595		-	each month the Department shall deposit $500,000 into the
10596		-	State Crime Laboratory Fund.
10597		-	Of the remainder of the moneys received by the Department
10598		-	pursuant to this Act, (a) 1.75% thereof shall be paid into the
10599		-	Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
10600		-	and after July 1, 1989, 3.8% thereof shall be paid into the
10601		-	Build Illinois Fund; provided, however, that if in any fiscal
10602		-	year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
10603		-	may be, of the moneys received by the Department and required
10604		-	to be paid into the Build Illinois Fund pursuant to Section 3
10605		-	of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
10606		-	Act, Section 9 of the Service Use Tax Act, and Section 9 of the
10607		-	Service Occupation Tax Act, such Acts being hereinafter called
10608		-	the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
10609		-	may be, of moneys being hereinafter called the "Tax Act
10610		-	Amount", and (2) the amount transferred to the Build Illinois
10611		-	Fund from the State and Local Sales Tax Reform Fund shall be
10612		-
10613		-
10614		-	less than the Annual Specified Amount (as defined in Section 3
10615		-	of the Retailers' Occupation Tax Act), an amount equal to the
10616		-	difference shall be immediately paid into the Build Illinois
10617		-	Fund from other moneys received by the Department pursuant to
10618		-	the Tax Acts; and further provided, that if on the last
10619		-	business day of any month the sum of (1) the Tax Act Amount
10620		-	required to be deposited into the Build Illinois Account in
10621		-	the Build Illinois Fund during such month and (2) the amount
10622		-	transferred during such month to the Build Illinois Fund from
10623		-	the State and Local Sales Tax Reform Fund shall have been less
10624		-	than 1/12 of the Annual Specified Amount, an amount equal to
10625		-	the difference shall be immediately paid into the Build
10626		-	Illinois Fund from other moneys received by the Department
10627		-	pursuant to the Tax Acts; and, further provided, that in no
10628		-	event shall the payments required under the preceding proviso
10629		-	result in aggregate payments into the Build Illinois Fund
10630		-	pursuant to this clause (b) for any fiscal year in excess of
10631		-	the greater of (i) the Tax Act Amount or (ii) the Annual
10632		-	Specified Amount for such fiscal year; and, further provided,
10633		-	that the amounts payable into the Build Illinois Fund under
10634		-	this clause (b) shall be payable only until such time as the
10635		-	aggregate amount on deposit under each trust indenture
10636		-	securing Bonds issued and outstanding pursuant to the Build
10637		-	Illinois Bond Act is sufficient, taking into account any
10638		-	future investment income, to fully provide, in accordance with
10639		-	such indenture, for the defeasance of or the payment of the
10640		-
10641		-
10642		-	principal of, premium, if any, and interest on the Bonds
10643		-	secured by such indenture and on any Bonds expected to be
10644		-	issued thereafter and all fees and costs payable with respect
10645		-	thereto, all as certified by the Director of the Bureau of the
10646		-	Budget (now Governor's Office of Management and Budget). If on
10647		-	the last business day of any month in which Bonds are
10648		-	outstanding pursuant to the Build Illinois Bond Act, the
10649		-	aggregate of the moneys deposited in the Build Illinois Bond
10650		-	Account in the Build Illinois Fund in such month shall be less
10651		-	than the amount required to be transferred in such month from
10652		-	the Build Illinois Bond Account to the Build Illinois Bond
10653		-	Retirement and Interest Fund pursuant to Section 13 of the
10654		-	Build Illinois Bond Act, an amount equal to such deficiency
10655		-	shall be immediately paid from other moneys received by the
10656		-	Department pursuant to the Tax Acts to the Build Illinois
10657		-	Fund; provided, however, that any amounts paid to the Build
10658		-	Illinois Fund in any fiscal year pursuant to this sentence
10659		-	shall be deemed to constitute payments pursuant to clause (b)
10660		-	of the preceding sentence and shall reduce the amount
10661		-	otherwise payable for such fiscal year pursuant to clause (b)
10662		-	of the preceding sentence. The moneys received by the
10663		-	Department pursuant to this Act and required to be deposited
10664		-	into the Build Illinois Fund are subject to the pledge, claim
10665		-	and charge set forth in Section 12 of the Build Illinois Bond
10666		-	Act.
10667		-	Subject to payment of amounts into the Build Illinois Fund
10668		-
10669		-
10670		-	as provided in the preceding paragraph or in any amendment
10671		-	thereto hereafter enacted, the following specified monthly
10672		-	installment of the amount requested in the certificate of the
10673		-	Chairman of the Metropolitan Pier and Exposition Authority
10674		-	provided under Section 8.25f of the State Finance Act, but not
10675		-	in excess of the sums designated as "Total Deposit", shall be
10676		-	deposited in the aggregate from collections under Section 9 of
10677		-	the Use Tax Act, Section 9 of the Service Use Tax Act, Section
10678		-	9 of the Service Occupation Tax Act, and Section 3 of the
10679		-	Retailers' Occupation Tax Act into the McCormick Place
10680		-	Expansion Project Fund in the specified fiscal years.
10681		-	Fiscal YearTotal Deposit1993 $01994 53,000,0001995 58,000,0001996 61,000,0001997 64,000,0001998 68,000,0001999 71,000,0002000 75,000,0002001 80,000,0002002 93,000,0002003 99,000,0002004103,000,0002005108,000,000 Fiscal Year Total Deposit 1993 $0 1994 53,000,000 1995 58,000,000 1996 61,000,000 1997 64,000,000 1998 68,000,000 1999 71,000,000 2000 75,000,000 2001 80,000,000 2002 93,000,000 2003 99,000,000 2004 103,000,000 2005 108,000,000
10682		-	Fiscal Year Total Deposit
10683		-	1993 $0
10684		-	1994 53,000,000
10685		-	1995 58,000,000
10686		-	1996 61,000,000
10687		-	1997 64,000,000
10688		-	1998 68,000,000
10689		-	1999 71,000,000
10690		-	2000 75,000,000
10691		-	2001 80,000,000
10692		-	2002 93,000,000
10693		-	2003 99,000,000
10694		-	2004 103,000,000
10695		-	2005 108,000,000
10696		-
10697		-
10698		-	Fiscal Year Total Deposit
10699		-	1993 $0
10700		-	1994 53,000,000
10701		-	1995 58,000,000
10702		-	1996 61,000,000
10703		-	1997 64,000,000
10704		-	1998 68,000,000
10705		-	1999 71,000,000
10706		-	2000 75,000,000
10707		-	2001 80,000,000
10708		-	2002 93,000,000
10709		-	2003 99,000,000
10710		-	2004 103,000,000
10711		-	2005 108,000,000
10712		-
10713		-
10714		-	2006113,000,0002007119,000,0002008126,000,0002009132,000,0002010139,000,0002011146,000,0002012153,000,0002013161,000,0002014170,000,0002015179,000,0002016189,000,0002017199,000,0002018210,000,0002019221,000,0002020233,000,0002021300,000,000 2022300,000,0002023300,000,0002024 300,000,0002025 300,000,0002026 300,000,0002027 375,000,0002028 375,000,0002029 375,000,0002030 375,000,0002031 375,000,000 2006 113,000,000 2007 119,000,000 2008 126,000,000 2009 132,000,000 2010 139,000,000 2011 146,000,000 2012 153,000,000 2013 161,000,000 2014 170,000,000 2015 179,000,000 2016 189,000,000 2017 199,000,000 2018 210,000,000 2019 221,000,000 2020 233,000,000 2021 300,000,000 2022 300,000,000 2023 300,000,000 2024 300,000,000 2025 300,000,000 2026 300,000,000 2027 375,000,000 2028 375,000,000 2029 375,000,000 2030 375,000,000 2031 375,000,000
10715		-	2006 113,000,000
10716		-	2007 119,000,000
10717		-	2008 126,000,000
10718		-	2009 132,000,000
10719		-	2010 139,000,000
10720		-	2011 146,000,000
10721		-	2012 153,000,000
10722		-	2013 161,000,000
10723		-	2014 170,000,000
10724		-	2015 179,000,000
10725		-	2016 189,000,000
10726		-	2017 199,000,000
10727		-	2018 210,000,000
10728		-	2019 221,000,000
10729		-	2020 233,000,000
10730		-	2021 300,000,000
10731		-	2022 300,000,000
10732		-	2023 300,000,000
10733		-	2024 300,000,000
10734		-	2025 300,000,000
10735		-	2026 300,000,000
10736		-	2027 375,000,000
10737		-	2028 375,000,000
10738		-	2029 375,000,000
10739		-	2030 375,000,000
10740		-	2031 375,000,000
10741		-
10742		-	2006 113,000,000
10743		-	2007 119,000,000
10744		-	2008 126,000,000
10745		-	2009 132,000,000
10746		-	2010 139,000,000
10747		-	2011 146,000,000
10748		-	2012 153,000,000
10749		-	2013 161,000,000
10750		-	2014 170,000,000
10751		-	2015 179,000,000
10752		-	2016 189,000,000
10753		-	2017 199,000,000
10754		-	2018 210,000,000
10755		-	2019 221,000,000
10756		-	2020 233,000,000
10757		-	2021 300,000,000
10758		-	2022 300,000,000
10759		-	2023 300,000,000
10760		-	2024 300,000,000
10761		-	2025 300,000,000
10762		-	2026 300,000,000
10763		-	2027 375,000,000
10764		-	2028 375,000,000
10765		-	2029 375,000,000
10766		-	2030 375,000,000
10767		-	2031 375,000,000
10768		-
10769		-
10770		-	2032 375,000,0002033 375,000,0002034375,000,0002035375,000,0002036450,000,000and each fiscal year thereafter that bonds are outstanding under Section 13.2 of the Metropolitan Pier and Exposition Authority Act, but not after fiscal year 2060. 2032 375,000,000 2033 375,000,000 2034 375,000,000 2035 375,000,000 2036 450,000,000 and each fiscal year thereafter that bonds are outstanding under Section 13.2 of the Metropolitan Pier and Exposition Authority Act, but not after fiscal year 2060.
10771		-	2032 375,000,000
10772		-	2033 375,000,000
10773		-	2034 375,000,000
10774		-	2035 375,000,000
10775		-	2036 450,000,000
10776		-	and
10777		-	each fiscal year
10778		-	thereafter that bonds
10779		-	are outstanding under
10780		-	Section 13.2 of the
10781		-	Metropolitan Pier and
10782		-	Exposition Authority Act,
10783		-	but not after fiscal year 2060.
10784		-	Beginning July 20, 1993 and in each month of each fiscal
10785		-	year thereafter, one-eighth of the amount requested in the
10786		-	certificate of the Chairman of the Metropolitan Pier and
10787		-	Exposition Authority for that fiscal year, less the amount
10788		-	deposited into the McCormick Place Expansion Project Fund by
10789		-	the State Treasurer in the respective month under subsection
10790		-	(g) of Section 13 of the Metropolitan Pier and Exposition
10791		-	Authority Act, plus cumulative deficiencies in the deposits
10792		-	required under this Section for previous months and years,
10793		-	shall be deposited into the McCormick Place Expansion Project
10794		-	Fund, until the full amount requested for the fiscal year, but
10795		-	not in excess of the amount specified above as "Total
10796		-	Deposit", has been deposited.
10797		-
10798		-	2032 375,000,000
10799		-	2033 375,000,000
10800		-	2034 375,000,000
10801		-	2035 375,000,000
10802		-	2036 450,000,000
10803		-	and
10804		-	each fiscal year
10805		-	thereafter that bonds
10806		-	are outstanding under
10807		-	Section 13.2 of the
10808		-	Metropolitan Pier and
10809		-	Exposition Authority Act,
10810		-	but not after fiscal year 2060.
10811		-
10812		-
10813		-	Subject to payment of amounts into the Capital Projects
10814		-	Fund, the Build Illinois Fund, and the McCormick Place
10815		-	Expansion Project Fund pursuant to the preceding paragraphs or
10816		-	in any amendments thereto hereafter enacted, for aviation fuel
10817		-	sold on or after December 1, 2019, the Department shall each
10818		-	month deposit into the Aviation Fuel Sales Tax Refund Fund an
10819		-	amount estimated by the Department to be required for refunds
10820		-	of the 80% portion of the tax on aviation fuel under this Act.
10821		-	The Department shall only deposit moneys into the Aviation
10822		-	Fuel Sales Tax Refund Fund under this paragraph for so long as
10823		-	the revenue use requirements of 49 U.S.C. 47107(b) and 49
10824		-	U.S.C. 47133 are binding on the State.
10825		-	Subject to payment of amounts into the Build Illinois Fund
10826		-	and the McCormick Place Expansion Project Fund pursuant to the
10827		-	preceding paragraphs or in any amendments thereto hereafter
10828		-	enacted, beginning July 1, 1993 and ending on September 30,
10829		-	2013, the Department shall each month pay into the Illinois
10830		-	Tax Increment Fund 0.27% of 80% of the net revenue realized for
10831		-	the preceding month from the 6.25% general rate on the selling
10832		-	price of tangible personal property.
10833		-	Subject to payment of amounts into the Build Illinois Fund
10834		-	and the McCormick Place Expansion Project Fund pursuant to the
10835		-	preceding paragraphs or in any amendments thereto hereafter
10836		-	enacted, beginning with the receipt of the first report of
10837		-	taxes paid by an eligible business and continuing for a
10838		-	25-year period, the Department shall each month pay into the
10839		-
10840		-
10841		-	Energy Infrastructure Fund 80% of the net revenue realized
10842		-	from the 6.25% general rate on the selling price of
10843		-	Illinois-mined coal that was sold to an eligible business. For
10844		-	purposes of this paragraph, the term "eligible business" means
10845		-	a new electric generating facility certified pursuant to
10846		-	Section 605-332 of the Department of Commerce and Economic
10847		-	Opportunity Law of the Civil Administrative Code of Illinois.
10848		-	Subject to payment of amounts into the Build Illinois
10849		-	Fund, the McCormick Place Expansion Project Fund, the Illinois
10850		-	Tax Increment Fund, and the Energy Infrastructure Fund
10851		-	pursuant to the preceding paragraphs or in any amendments to
10852		-	this Section hereafter enacted, beginning on the first day of
10853		-	the first calendar month to occur on or after August 26, 2014
10854		-	(the effective date of Public Act 98-1098), each month, from
10855		-	the collections made under Section 9 of the Use Tax Act,
10856		-	Section 9 of the Service Use Tax Act, Section 9 of the Service
10857		-	Occupation Tax Act, and Section 3 of the Retailers' Occupation
10858		-	Tax Act, the Department shall pay into the Tax Compliance and
10859		-	Administration Fund, to be used, subject to appropriation, to
10860		-	fund additional auditors and compliance personnel at the
10861		-	Department of Revenue, an amount equal to 1/12 of 5% of 80% of
10862		-	the cash receipts collected during the preceding fiscal year
10863		-	by the Audit Bureau of the Department under the Use Tax Act,
10864		-	the Service Use Tax Act, the Service Occupation Tax Act, the
10865		-	Retailers' Occupation Tax Act, and associated local occupation
10866		-	and use taxes administered by the Department.
10867		-
10868		-
10869		-	Subject to payments of amounts into the Build Illinois
10870		-	Fund, the McCormick Place Expansion Project Fund, the Illinois
10871		-	Tax Increment Fund, the Energy Infrastructure Fund, and the
10872		-	Tax Compliance and Administration Fund as provided in this
10873		-	Section, beginning on July 1, 2018 the Department shall pay
10874		-	each month into the Downstate Public Transportation Fund the
10875		-	moneys required to be so paid under Section 2-3 of the
10876		-	Downstate Public Transportation Act.
10877		-	Subject to successful execution and delivery of a
10878		-	public-private agreement between the public agency and private
10879		-	entity and completion of the civic build, beginning on July 1,
10880		-	2023, of the remainder of the moneys received by the
10881		-	Department under the Use Tax Act, the Service Use Tax Act, the
10882		-	Service Occupation Tax Act, and this Act, the Department shall
10883		-	deposit the following specified deposits in the aggregate from
10884		-	collections under the Use Tax Act, the Service Use Tax Act, the
10885		-	Service Occupation Tax Act, and the Retailers' Occupation Tax
10886		-	Act, as required under Section 8.25g of the State Finance Act
10887		-	for distribution consistent with the Public-Private
10888		-	Partnership for Civic and Transit Infrastructure Project Act.
10889		-	The moneys received by the Department pursuant to this Act and
10890		-	required to be deposited into the Civic and Transit
10891		-	Infrastructure Fund are subject to the pledge, claim and
10892		-	charge set forth in Section 25-55 of the Public-Private
10893		-	Partnership for Civic and Transit Infrastructure Project Act.
10894		-	As used in this paragraph, "civic build", "private entity",
10895		-
10896		-
10897		-	"public-private agreement", and "public agency" have the
10898		-	meanings provided in Section 25-10 of the Public-Private
10899		-	Partnership for Civic and Transit Infrastructure Project Act.
10900		-	Fiscal Year............................Total Deposit
10901		-	2024....................................$200,000,000
10902		-	2025....................................$206,000,000
10903		-	2026....................................$212,200,000
10904		-	2027....................................$218,500,000
10905		-	2028....................................$225,100,000
10906		-	2029....................................$288,700,000
10907		-	2030....................................$298,900,000
10908		-	2031....................................$309,300,000
10909		-	2032....................................$320,100,000
10910		-	2033....................................$331,200,000
10911		-	2034....................................$341,200,000
10912		-	2035....................................$351,400,000
10913		-	2036....................................$361,900,000
10914		-	2037....................................$372,800,000
10915		-	2038....................................$384,000,000
10916		-	2039....................................$395,500,000
10917		-	2040....................................$407,400,000
10918		-	2041....................................$419,600,000
10919		-	2042....................................$432,200,000
10920		-	2043....................................$445,100,000
10921		-	Beginning July 1, 2021 and until July 1, 2022, subject to
10922		-	the payment of amounts into the County and Mass Transit
10923		-
10924		-
10925		-	District Fund, the Local Government Tax Fund, the Build
10926		-	Illinois Fund, the McCormick Place Expansion Project Fund, the
10927		-	Illinois Tax Increment Fund, the Energy Infrastructure Fund,
10928		-	and the Tax Compliance and Administration Fund as provided in
10929		-	this Section, the Department shall pay each month into the
10930		-	Road Fund the amount estimated to represent 16% of the net
10931		-	revenue realized from the taxes imposed on motor fuel and
10932		-	gasohol. Beginning July 1, 2022 and until July 1, 2023,
10933		-	subject to the payment of amounts into the County and Mass
10934		-	Transit District Fund, the Local Government Tax Fund, the
10935		-	Build Illinois Fund, the McCormick Place Expansion Project
10936		-	Fund, the Illinois Tax Increment Fund, the Energy
10937		-	Infrastructure Fund, and the Tax Compliance and Administration
10938		-	Fund as provided in this Section, the Department shall pay
10939		-	each month into the Road Fund the amount estimated to
10940		-	represent 32% of the net revenue realized from the taxes
10941		-	imposed on motor fuel and gasohol. Beginning July 1, 2023 and
10942		-	until July 1, 2024, subject to the payment of amounts into the
10943		-	County and Mass Transit District Fund, the Local Government
10944		-	Tax Fund, the Build Illinois Fund, the McCormick Place
10945		-	Expansion Project Fund, the Illinois Tax Increment Fund, the
10946		-	Energy Infrastructure Fund, and the Tax Compliance and
10947		-	Administration Fund as provided in this Section, the
10948		-	Department shall pay each month into the Road Fund the amount
10949		-	estimated to represent 48% of the net revenue realized from
10950		-	the taxes imposed on motor fuel and gasohol. Beginning July 1,
10951		-
10952		-
10953		-	2024 and until July 1, 2025, subject to the payment of amounts
10954		-	into the County and Mass Transit District Fund, the Local
10955		-	Government Tax Fund, the Build Illinois Fund, the McCormick
10956		-	Place Expansion Project Fund, the Illinois Tax Increment Fund,
10957		-	the Energy Infrastructure Fund, and the Tax Compliance and
10958		-	Administration Fund as provided in this Section, the
10959		-	Department shall pay each month into the Road Fund the amount
10960		-	estimated to represent 64% of the net revenue realized from
10961		-	the taxes imposed on motor fuel and gasohol. Beginning on July
10962		-	1, 2025, subject to the payment of amounts into the County and
10963		-	Mass Transit District Fund, the Local Government Tax Fund, the
10964		-	Build Illinois Fund, the McCormick Place Expansion Project
10965		-	Fund, the Illinois Tax Increment Fund, the Energy
10966		-	Infrastructure Fund, and the Tax Compliance and Administration
10967		-	Fund as provided in this Section, the Department shall pay
10968		-	each month into the Road Fund the amount estimated to
10969		-	represent 80% of the net revenue realized from the taxes
10970		-	imposed on motor fuel and gasohol. As used in this paragraph
10971		-	"motor fuel" has the meaning given to that term in Section 1.1
10972		-	of the Motor Fuel Tax Law, and "gasohol" has the meaning given
10973		-	to that term in Section 3-40 of the Use Tax Act.
10974		-	Of the remainder of the moneys received by the Department
10975		-	pursuant to this Act, 75% shall be paid into the General
10976		-	Revenue Fund of the State Treasury and 25% shall be reserved in
10977		-	a special account and used only for the transfer to the Common
10978		-	School Fund as part of the monthly transfer from the General
10979		-
10980		-
10981		-	Revenue Fund in accordance with Section 8a of the State
10982		-	Finance Act.
10983		-	The Department may, upon separate written notice to a
10984		-	taxpayer, require the taxpayer to prepare and file with the
10985		-	Department on a form prescribed by the Department within not
10986		-	less than 60 days after receipt of the notice an annual
10987		-	information return for the tax year specified in the notice.
10988		-	Such annual return to the Department shall include a statement
10989		-	of gross receipts as shown by the taxpayer's last Federal
10990		-	income tax return. If the total receipts of the business as
10991		-	reported in the Federal income tax return do not agree with the
10992		-	gross receipts reported to the Department of Revenue for the
10993		-	same period, the taxpayer shall attach to his annual return a
10994		-	schedule showing a reconciliation of the 2 amounts and the
10995		-	reasons for the difference. The taxpayer's annual return to
10996		-	the Department shall also disclose the cost of goods sold by
10997		-	the taxpayer during the year covered by such return, opening
10998		-	and closing inventories of such goods for such year, cost of
10999		-	goods used from stock or taken from stock and given away by the
11000		-	taxpayer during such year, pay roll information of the
11001		-	taxpayer's business during such year and any additional
11002		-	reasonable information which the Department deems would be
11003		-	helpful in determining the accuracy of the monthly, quarterly
11004		-	or annual returns filed by such taxpayer as hereinbefore
11005		-	provided for in this Section.
11006		-	If the annual information return required by this Section
11007		-
11008		-
11009		-	is not filed when and as required, the taxpayer shall be liable
11010		-	as follows:
11011		-	(i) Until January 1, 1994, the taxpayer shall be
11012		-	liable for a penalty equal to 1/6 of 1% of the tax due from
11013		-	such taxpayer under this Act during the period to be
11014		-	covered by the annual return for each month or fraction of
11015		-	a month until such return is filed as required, the
11016		-	penalty to be assessed and collected in the same manner as
11017		-	any other penalty provided for in this Act.
11018		-	(ii) On and after January 1, 1994, the taxpayer shall
11019		-	be liable for a penalty as described in Section 3-4 of the
11020		-	Uniform Penalty and Interest Act.
11021		-	The chief executive officer, proprietor, owner or highest
11022		-	ranking manager shall sign the annual return to certify the
11023		-	accuracy of the information contained therein. Any person who
11024		-	willfully signs the annual return containing false or
11025		-	inaccurate information shall be guilty of perjury and punished
11026		-	accordingly. The annual return form prescribed by the
11027		-	Department shall include a warning that the person signing the
11028		-	return may be liable for perjury.
11029		-	The foregoing portion of this Section concerning the
11030		-	filing of an annual information return shall not apply to a
11031		-	serviceman who is not required to file an income tax return
11032		-	with the United States Government.
11033		-	As soon as possible after the first day of each month, upon
11034		-	certification of the Department of Revenue, the Comptroller
11035		-
11036		-
11037		-	shall order transferred and the Treasurer shall transfer from
11038		-	the General Revenue Fund to the Motor Fuel Tax Fund an amount
11039		-	equal to 1.7% of 80% of the net revenue realized under this Act
11040		-	for the second preceding month. Beginning April 1, 2000, this
11041		-	transfer is no longer required and shall not be made.
11042		-	Net revenue realized for a month shall be the revenue
11043		-	collected by the State pursuant to this Act, less the amount
11044		-	paid out during that month as refunds to taxpayers for
11045		-	overpayment of liability.
11046		-	For greater simplicity of administration, it shall be
11047		-	permissible for manufacturers, importers and wholesalers whose
11048		-	products are sold by numerous servicemen in Illinois, and who
11049		-	wish to do so, to assume the responsibility for accounting and
11050		-	paying to the Department all tax accruing under this Act with
11051		-	respect to such sales, if the servicemen who are affected do
11052		-	not make written objection to the Department to this
11053		-	arrangement.
11054		-	(Source: P.A. 101-10, Article 15, Section 15-20, eff. 6-5-19;
11055		-	101-10, Article 25, Section 25-115, eff. 6-5-19; 101-27, eff.
11056		-	6-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
11057		-	101-636, eff. 6-10-20; 102-700, eff. 4-19-22.)
11058		-	Section 70-20. The Retailers' Occupation Tax Act is
11059		-	amended by changing Section 3 as follows:
11060		-	(35 ILCS 120/3) (from Ch. 120, par. 442)
11061		-
11062		-
11063		-	Sec. 3. Except as provided in this Section, on or before
11064		-	the twentieth day of each calendar month, every person engaged
11065		-	in the business of selling tangible personal property at
11066		-	retail in this State during the preceding calendar month shall
11067		-	file a return with the Department, stating:
11068		-	1. The name of the seller;
11069		-	2. His residence address and the address of his
11070		-	principal place of business and the address of the
11071		-	principal place of business (if that is a different
11072		-	address) from which he engages in the business of selling
11073		-	tangible personal property at retail in this State;
11074		-	3. Total amount of receipts received by him during the
11075		-	preceding calendar month or quarter, as the case may be,
11076		-	from sales of tangible personal property, and from
11077		-	services furnished, by him during such preceding calendar
11078		-	month or quarter;
11079		-	4. Total amount received by him during the preceding
11080		-	calendar month or quarter on charge and time sales of
11081		-	tangible personal property, and from services furnished,
11082		-	by him prior to the month or quarter for which the return
11083		-	is filed;
11084		-	5. Deductions allowed by law;
11085		-	6. Gross receipts which were received by him during
11086		-	the preceding calendar month or quarter and upon the basis
11087		-	of which the tax is imposed, including gross receipts on
11088		-	food for human consumption that is to be consumed off the
11089		-
11090		-
11091		-	premises where it is sold (other than alcoholic beverages,
11092		-	food consisting of or infused with adult use cannabis,
11093		-	soft drinks, and food that has been prepared for immediate
11094		-	consumption) which were received during the preceding
11095		-	calendar month or quarter and upon which tax would have
11096		-	been due but for the 0% rate imposed under Public Act
11097		-	102-700 this amendatory Act of the 102nd General Assembly;
11098		-	7. The amount of credit provided in Section 2d of this
11099		-	Act;
11100		-	8. The amount of tax due, including the amount of tax
11101		-	that would have been due on food for human consumption
11102		-	that is to be consumed off the premises where it is sold
11103		-	(other than alcoholic beverages, food consisting of or
11104		-	infused with adult use cannabis, soft drinks, and food
11105		-	that has been prepared for immediate consumption) but for
11106		-	the 0% rate imposed under Public Act 102-700 this
11107		-	amendatory Act of the 102nd General Assembly;
11108		-	9. The signature of the taxpayer; and
11109		-	10. Such other reasonable information as the
11110		-	Department may require.
11111		-	On and after January 1, 2018, except for returns required
11112		-	to be filed prior to January 1, 2023 for motor vehicles,
11113		-	watercraft, aircraft, and trailers that are required to be
11114		-	registered with an agency of this State, with respect to
11115		-	retailers whose annual gross receipts average $20,000 or more,
11116		-	all returns required to be filed pursuant to this Act shall be
11117		-
11118		-
11119		-	filed electronically. On and after January 1, 2023, with
11120		-	respect to retailers whose annual gross receipts average
11121		-	$20,000 or more, all returns required to be filed pursuant to
11122		-	this Act, including, but not limited to, returns for motor
11123		-	vehicles, watercraft, aircraft, and trailers that are required
11124		-	to be registered with an agency of this State, shall be filed
11125		-	electronically. Retailers who demonstrate that they do not
11126		-	have access to the Internet or demonstrate hardship in filing
11127		-	electronically may petition the Department to waive the
11128		-	electronic filing requirement.
11129		-	If a taxpayer fails to sign a return within 30 days after
11130		-	the proper notice and demand for signature by the Department,
11131		-	the return shall be considered valid and any amount shown to be
11132		-	due on the return shall be deemed assessed.
11133		-	Each return shall be accompanied by the statement of
11134		-	prepaid tax issued pursuant to Section 2e for which credit is
11135		-	claimed.
11136		-	Prior to October 1, 2003, and on and after September 1,
11137		-	2004 a retailer may accept a Manufacturer's Purchase Credit
11138		-	certification from a purchaser in satisfaction of Use Tax as
11139		-	provided in Section 3-85 of the Use Tax Act if the purchaser
11140		-	provides the appropriate documentation as required by Section
11141		-	3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
11142		-	certification, accepted by a retailer prior to October 1, 2003
11143		-	and on and after September 1, 2004 as provided in Section 3-85
11144		-	of the Use Tax Act, may be used by that retailer to satisfy
11145		-
11146		-
11147		-	Retailers' Occupation Tax liability in the amount claimed in
11148		-	the certification, not to exceed 6.25% of the receipts subject
11149		-	to tax from a qualifying purchase. A Manufacturer's Purchase
11150		-	Credit reported on any original or amended return filed under
11151		-	this Act after October 20, 2003 for reporting periods prior to
11152		-	September 1, 2004 shall be disallowed. Manufacturer's Purchase
11153		-	Credit reported on annual returns due on or after January 1,
11154		-	2005 will be disallowed for periods prior to September 1,
11155		-	2004. No Manufacturer's Purchase Credit may be used after
11156		-	September 30, 2003 through August 31, 2004 to satisfy any tax
11157		-	liability imposed under this Act, including any audit
11158		-	liability.
11159		-	Beginning on July 1, 2023 and through December 31, 2032, a
11160		-	retailer may accept a Sustainable Aviation Fuel Purchase
11161		-	Credit certification from an air common carrier-purchaser in
11162		-	satisfaction of Use Tax on aviation fuel as provided in
11163		-	Section 3-87 of the Use Tax Act if the purchaser provides the
11164		-	appropriate documentation as required by Section 3-87 of the
11165		-	Use Tax Act. A Sustainable Aviation Fuel Purchase Credit
11166		-	certification accepted by a retailer in accordance with this
11167		-	paragraph may be used by that retailer to satisfy Retailers'
11168		-	Occupation Tax liability (but not in satisfaction of penalty
11169		-	or interest) in the amount claimed in the certification, not
11170		-	to exceed 6.25% of the receipts subject to tax from a sale of
11171		-	aviation fuel. In addition, for a sale of aviation fuel to
11172		-	qualify to earn the Sustainable Aviation Fuel Purchase Credit,
11173		-
11174		-
11175		-	retailers must retain in their books and records a
11176		-	certification from the producer of the aviation fuel that the
11177		-	aviation fuel sold by the retailer and for which a sustainable
11178		-	aviation fuel purchase credit was earned meets the definition
11179		-	of sustainable aviation fuel under Section 3-87 of the Use Tax
11180		-	Act. The documentation must include detail sufficient for the
11181		-	Department to determine the number of gallons of sustainable
11182		-	aviation fuel sold.
11183		-	The Department may require returns to be filed on a
11184		-	quarterly basis. If so required, a return for each calendar
11185		-	quarter shall be filed on or before the twentieth day of the
11186		-	calendar month following the end of such calendar quarter. The
11187		-	taxpayer shall also file a return with the Department for each
11188		-	of the first two months of each calendar quarter, on or before
11189		-	the twentieth day of the following calendar month, stating:
11190		-	1. The name of the seller;
11191		-	2. The address of the principal place of business from
11192		-	which he engages in the business of selling tangible
11193		-	personal property at retail in this State;
11194		-	3. The total amount of taxable receipts received by
11195		-	him during the preceding calendar month from sales of
11196		-	tangible personal property by him during such preceding
11197		-	calendar month, including receipts from charge and time
11198		-	sales, but less all deductions allowed by law;
11199		-	4. The amount of credit provided in Section 2d of this
11200		-	Act;
11201		-
11202		-
11203		-	5. The amount of tax due; and
11204		-	6. Such other reasonable information as the Department
11205		-	may require.
11206		-	Every person engaged in the business of selling aviation
11207		-	fuel at retail in this State during the preceding calendar
11208		-	month shall, instead of reporting and paying tax as otherwise
11209		-	required by this Section, report and pay such tax on a separate
11210		-	aviation fuel tax return. The requirements related to the
11211		-	return shall be as otherwise provided in this Section.
11212		-	Notwithstanding any other provisions of this Act to the
11213		-	contrary, retailers selling aviation fuel shall file all
11214		-	aviation fuel tax returns and shall make all aviation fuel tax
11215		-	payments by electronic means in the manner and form required
11216		-	by the Department. For purposes of this Section, "aviation
11217		-	fuel" means jet fuel and aviation gasoline.
11218		-	Beginning on October 1, 2003, any person who is not a
11219		-	licensed distributor, importing distributor, or manufacturer,
11220		-	as defined in the Liquor Control Act of 1934, but is engaged in
11221		-	the business of selling, at retail, alcoholic liquor shall
11222		-	file a statement with the Department of Revenue, in a format
11223		-	and at a time prescribed by the Department, showing the total
11224		-	amount paid for alcoholic liquor purchased during the
11225		-	preceding month and such other information as is reasonably
11226		-	required by the Department. The Department may adopt rules to
11227		-	require that this statement be filed in an electronic or
11228		-	telephonic format. Such rules may provide for exceptions from
11229		-
11230		-
11231		-	the filing requirements of this paragraph. For the purposes of
11232		-	this paragraph, the term "alcoholic liquor" shall have the
11233		-	meaning prescribed in the Liquor Control Act of 1934.
11234		-	Beginning on October 1, 2003, every distributor, importing
11235		-	distributor, and manufacturer of alcoholic liquor as defined
11236		-	in the Liquor Control Act of 1934, shall file a statement with
11237		-	the Department of Revenue, no later than the 10th day of the
11238		-	month for the preceding month during which transactions
11239		-	occurred, by electronic means, showing the total amount of
11240		-	gross receipts from the sale of alcoholic liquor sold or
11241		-	distributed during the preceding month to purchasers;
11242		-	identifying the purchaser to whom it was sold or distributed;
11243		-	the purchaser's tax registration number; and such other
11244		-	information reasonably required by the Department. A
11245		-	distributor, importing distributor, or manufacturer of
11246		-	alcoholic liquor must personally deliver, mail, or provide by
11247		-	electronic means to each retailer listed on the monthly
11248		-	statement a report containing a cumulative total of that
11249		-	distributor's, importing distributor's, or manufacturer's
11250		-	total sales of alcoholic liquor to that retailer no later than
11251		-	the 10th day of the month for the preceding month during which
11252		-	the transaction occurred. The distributor, importing
11253		-	distributor, or manufacturer shall notify the retailer as to
11254		-	the method by which the distributor, importing distributor, or
11255		-	manufacturer will provide the sales information. If the
11256		-	retailer is unable to receive the sales information by
11257		-
11258		-
11259		-	electronic means, the distributor, importing distributor, or
11260		-	manufacturer shall furnish the sales information by personal
11261		-	delivery or by mail. For purposes of this paragraph, the term
11262		-	"electronic means" includes, but is not limited to, the use of
11263		-	a secure Internet website, e-mail, or facsimile.
11264		-	If a total amount of less than $1 is payable, refundable or
11265		-	creditable, such amount shall be disregarded if it is less
11266		-	than 50 cents and shall be increased to $1 if it is 50 cents or
11267		-	more.
11268		-	Notwithstanding any other provision of this Act to the
11269		-	contrary, retailers subject to tax on cannabis shall file all
11270		-	cannabis tax returns and shall make all cannabis tax payments
11271		-	by electronic means in the manner and form required by the
11272		-	Department.
11273		-	Beginning October 1, 1993, a taxpayer who has an average
11274		-	monthly tax liability of $150,000 or more shall make all
11275		-	payments required by rules of the Department by electronic
11276		-	funds transfer. Beginning October 1, 1994, a taxpayer who has
11277		-	an average monthly tax liability of $100,000 or more shall
11278		-	make all payments required by rules of the Department by
11279		-	electronic funds transfer. Beginning October 1, 1995, a
11280		-	taxpayer who has an average monthly tax liability of $50,000
11281		-	or more shall make all payments required by rules of the
11282		-	Department by electronic funds transfer. Beginning October 1,
11283		-	2000, a taxpayer who has an annual tax liability of $200,000 or
11284		-	more shall make all payments required by rules of the
11285		-
11286		-
11287		-	Department by electronic funds transfer. The term "annual tax
11288		-	liability" shall be the sum of the taxpayer's liabilities
11289		-	under this Act, and under all other State and local occupation
11290		-	and use tax laws administered by the Department, for the
11291		-	immediately preceding calendar year. The term "average monthly
11292		-	tax liability" shall be the sum of the taxpayer's liabilities
11293		-	under this Act, and under all other State and local occupation
11294		-	and use tax laws administered by the Department, for the
11295		-	immediately preceding calendar year divided by 12. Beginning
11296		-	on October 1, 2002, a taxpayer who has a tax liability in the
11297		-	amount set forth in subsection (b) of Section 2505-210 of the
11298		-	Department of Revenue Law shall make all payments required by
11299		-	rules of the Department by electronic funds transfer.
11300		-	Before August 1 of each year beginning in 1993, the
11301		-	Department shall notify all taxpayers required to make
11302		-	payments by electronic funds transfer. All taxpayers required
11303		-	to make payments by electronic funds transfer shall make those
11304		-	payments for a minimum of one year beginning on October 1.
11305		-	Any taxpayer not required to make payments by electronic
11306		-	funds transfer may make payments by electronic funds transfer
11307		-	with the permission of the Department.
11308		-	All taxpayers required to make payment by electronic funds
11309		-	transfer and any taxpayers authorized to voluntarily make
11310		-	payments by electronic funds transfer shall make those
11311		-	payments in the manner authorized by the Department.
11312		-	The Department shall adopt such rules as are necessary to
11313		-
11314		-
11315		-	effectuate a program of electronic funds transfer and the
11316		-	requirements of this Section.
11317		-	Any amount which is required to be shown or reported on any
11318		-	return or other document under this Act shall, if such amount
11319		-	is not a whole-dollar amount, be increased to the nearest
11320		-	whole-dollar amount in any case where the fractional part of a
11321		-	dollar is 50 cents or more, and decreased to the nearest
11322		-	whole-dollar amount where the fractional part of a dollar is
11323		-	less than 50 cents.
11324		-	If the retailer is otherwise required to file a monthly
11325		-	return and if the retailer's average monthly tax liability to
11326		-	the Department does not exceed $200, the Department may
11327		-	authorize his returns to be filed on a quarter annual basis,
11328		-	with the return for January, February and March of a given year
11329		-	being due by April 20 of such year; with the return for April,
11330		-	May and June of a given year being due by July 20 of such year;
11331		-	with the return for July, August and September of a given year
11332		-	being due by October 20 of such year, and with the return for
11333		-	October, November and December of a given year being due by
11334		-	January 20 of the following year.
11335		-	If the retailer is otherwise required to file a monthly or
11336		-	quarterly return and if the retailer's average monthly tax
11337		-	liability with the Department does not exceed $50, the
11338		-	Department may authorize his returns to be filed on an annual
11339		-	basis, with the return for a given year being due by January 20
11340		-	of the following year.
11341		-
11342		-
11343		-	Such quarter annual and annual returns, as to form and
11344		-	substance, shall be subject to the same requirements as
11345		-	monthly returns.
11346		-	Notwithstanding any other provision in this Act concerning
11347		-	the time within which a retailer may file his return, in the
11348		-	case of any retailer who ceases to engage in a kind of business
11349		-	which makes him responsible for filing returns under this Act,
11350		-	such retailer shall file a final return under this Act with the
11351		-	Department not more than one month after discontinuing such
11352		-	business.
11353		-	Where the same person has more than one business
11354		-	registered with the Department under separate registrations
11355		-	under this Act, such person may not file each return that is
11356		-	due as a single return covering all such registered
11357		-	businesses, but shall file separate returns for each such
11358		-	registered business.
11359		-	In addition, with respect to motor vehicles, watercraft,
11360		-	aircraft, and trailers that are required to be registered with
11361		-	an agency of this State, except as otherwise provided in this
11362		-	Section, every retailer selling this kind of tangible personal
11363		-	property shall file, with the Department, upon a form to be
11364		-	prescribed and supplied by the Department, a separate return
11365		-	for each such item of tangible personal property which the
11366		-	retailer sells, except that if, in the same transaction, (i) a
11367		-	retailer of aircraft, watercraft, motor vehicles or trailers
11368		-	transfers more than one aircraft, watercraft, motor vehicle or
11369		-
11370		-
11371		-	trailer to another aircraft, watercraft, motor vehicle
11372		-	retailer or trailer retailer for the purpose of resale or (ii)
11373		-	a retailer of aircraft, watercraft, motor vehicles, or
11374		-	trailers transfers more than one aircraft, watercraft, motor
11375		-	vehicle, or trailer to a purchaser for use as a qualifying
11376		-	rolling stock as provided in Section 2-5 of this Act, then that
11377		-	seller may report the transfer of all aircraft, watercraft,
11378		-	motor vehicles or trailers involved in that transaction to the
11379		-	Department on the same uniform invoice-transaction reporting
11380		-	return form. For purposes of this Section, "watercraft" means
11381		-	a Class 2, Class 3, or Class 4 watercraft as defined in Section
11382		-	3-2 of the Boat Registration and Safety Act, a personal
11383		-	watercraft, or any boat equipped with an inboard motor.
11384		-	In addition, with respect to motor vehicles, watercraft,
11385		-	aircraft, and trailers that are required to be registered with
11386		-	an agency of this State, every person who is engaged in the
11387		-	business of leasing or renting such items and who, in
11388		-	connection with such business, sells any such item to a
11389		-	retailer for the purpose of resale is, notwithstanding any
11390		-	other provision of this Section to the contrary, authorized to
11391		-	meet the return-filing requirement of this Act by reporting
11392		-	the transfer of all the aircraft, watercraft, motor vehicles,
11393		-	or trailers transferred for resale during a month to the
11394		-	Department on the same uniform invoice-transaction reporting
11395		-	return form on or before the 20th of the month following the
11396		-	month in which the transfer takes place. Notwithstanding any
11397		-
11398		-
11399		-	other provision of this Act to the contrary, all returns filed
11400		-	under this paragraph must be filed by electronic means in the
11401		-	manner and form as required by the Department.
11402		-	Any retailer who sells only motor vehicles, watercraft,
11403		-	aircraft, or trailers that are required to be registered with
11404		-	an agency of this State, so that all retailers' occupation tax
11405		-	liability is required to be reported, and is reported, on such
11406		-	transaction reporting returns and who is not otherwise
11407		-	required to file monthly or quarterly returns, need not file
11408		-	monthly or quarterly returns. However, those retailers shall
11409		-	be required to file returns on an annual basis.
11410		-	The transaction reporting return, in the case of motor
11411		-	vehicles or trailers that are required to be registered with
11412		-	an agency of this State, shall be the same document as the
11413		-	Uniform Invoice referred to in Section 5-402 of the Illinois
11414		-	Vehicle Code and must show the name and address of the seller;
11415		-	the name and address of the purchaser; the amount of the
11416		-	selling price including the amount allowed by the retailer for
11417		-	traded-in property, if any; the amount allowed by the retailer
11418		-	for the traded-in tangible personal property, if any, to the
11419		-	extent to which Section 1 of this Act allows an exemption for
11420		-	the value of traded-in property; the balance payable after
11421		-	deducting such trade-in allowance from the total selling
11422		-	price; the amount of tax due from the retailer with respect to
11423		-	such transaction; the amount of tax collected from the
11424		-	purchaser by the retailer on such transaction (or satisfactory
11425		-
11426		-
11427		-	evidence that such tax is not due in that particular instance,
11428		-	if that is claimed to be the fact); the place and date of the
11429		-	sale; a sufficient identification of the property sold; such
11430		-	other information as is required in Section 5-402 of the
11431		-	Illinois Vehicle Code, and such other information as the
11432		-	Department may reasonably require.
11433		-	The transaction reporting return in the case of watercraft
11434		-	or aircraft must show the name and address of the seller; the
11435		-	name and address of the purchaser; the amount of the selling
11436		-	price including the amount allowed by the retailer for
11437		-	traded-in property, if any; the amount allowed by the retailer
11438		-	for the traded-in tangible personal property, if any, to the
11439		-	extent to which Section 1 of this Act allows an exemption for
11440		-	the value of traded-in property; the balance payable after
11441		-	deducting such trade-in allowance from the total selling
11442		-	price; the amount of tax due from the retailer with respect to
11443		-	such transaction; the amount of tax collected from the
11444		-	purchaser by the retailer on such transaction (or satisfactory
11445		-	evidence that such tax is not due in that particular instance,
11446		-	if that is claimed to be the fact); the place and date of the
11447		-	sale, a sufficient identification of the property sold, and
11448		-	such other information as the Department may reasonably
11449		-	require.
11450		-	Such transaction reporting return shall be filed not later
11451		-	than 20 days after the day of delivery of the item that is
11452		-	being sold, but may be filed by the retailer at any time sooner
11453		-
11454		-
11455		-	than that if he chooses to do so. The transaction reporting
11456		-	return and tax remittance or proof of exemption from the
11457		-	Illinois use tax may be transmitted to the Department by way of
11458		-	the State agency with which, or State officer with whom the
11459		-	tangible personal property must be titled or registered (if
11460		-	titling or registration is required) if the Department and
11461		-	such agency or State officer determine that this procedure
11462		-	will expedite the processing of applications for title or
11463		-	registration.
11464		-	With each such transaction reporting return, the retailer
11465		-	shall remit the proper amount of tax due (or shall submit
11466		-	satisfactory evidence that the sale is not taxable if that is
11467		-	the case), to the Department or its agents, whereupon the
11468		-	Department shall issue, in the purchaser's name, a use tax
11469		-	receipt (or a certificate of exemption if the Department is
11470		-	satisfied that the particular sale is tax exempt) which such
11471		-	purchaser may submit to the agency with which, or State
11472		-	officer with whom, he must title or register the tangible
11473		-	personal property that is involved (if titling or registration
11474		-	is required) in support of such purchaser's application for an
11475		-	Illinois certificate or other evidence of title or
11476		-	registration to such tangible personal property.
11477		-	No retailer's failure or refusal to remit tax under this
11478		-	Act precludes a user, who has paid the proper tax to the
11479		-	retailer, from obtaining his certificate of title or other
11480		-	evidence of title or registration (if titling or registration
11481		-
11482		-
11483		-	is required) upon satisfying the Department that such user has
11484		-	paid the proper tax (if tax is due) to the retailer. The
11485		-	Department shall adopt appropriate rules to carry out the
11486		-	mandate of this paragraph.
11487		-	If the user who would otherwise pay tax to the retailer
11488		-	wants the transaction reporting return filed and the payment
11489		-	of the tax or proof of exemption made to the Department before
11490		-	the retailer is willing to take these actions and such user has
11491		-	not paid the tax to the retailer, such user may certify to the
11492		-	fact of such delay by the retailer and may (upon the Department
11493		-	being satisfied of the truth of such certification) transmit
11494		-	the information required by the transaction reporting return
11495		-	and the remittance for tax or proof of exemption directly to
11496		-	the Department and obtain his tax receipt or exemption
11497		-	determination, in which event the transaction reporting return
11498		-	and tax remittance (if a tax payment was required) shall be
11499		-	credited by the Department to the proper retailer's account
11500		-	with the Department, but without the 2.1% or 1.75% discount
11501		-	provided for in this Section being allowed. When the user pays
11502		-	the tax directly to the Department, he shall pay the tax in the
11503		-	same amount and in the same form in which it would be remitted
11504		-	if the tax had been remitted to the Department by the retailer.
11505		-	Refunds made by the seller during the preceding return
11506		-	period to purchasers, on account of tangible personal property
11507		-	returned to the seller, shall be allowed as a deduction under
11508		-	subdivision 5 of his monthly or quarterly return, as the case
11509		-
11510		-
11511		-	may be, in case the seller had theretofore included the
11512		-	receipts from the sale of such tangible personal property in a
11513		-	return filed by him and had paid the tax imposed by this Act
11514		-	with respect to such receipts.
11515		-	Where the seller is a corporation, the return filed on
11516		-	behalf of such corporation shall be signed by the president,
11517		-	vice-president, secretary or treasurer or by the properly
11518		-	accredited agent of such corporation.
11519		-	Where the seller is a limited liability company, the
11520		-	return filed on behalf of the limited liability company shall
11521		-	be signed by a manager, member, or properly accredited agent
11522		-	of the limited liability company.
11523		-	Except as provided in this Section, the retailer filing
11524		-	the return under this Section shall, at the time of filing such
11525		-	return, pay to the Department the amount of tax imposed by this
11526		-	Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
11527		-	on and after January 1, 1990, or $5 per calendar year,
11528		-	whichever is greater, which is allowed to reimburse the
11529		-	retailer for the expenses incurred in keeping records,
11530		-	preparing and filing returns, remitting the tax and supplying
11531		-	data to the Department on request. On and after January 1,
11532		-	2021, a certified service provider, as defined in the Leveling
11533		-	the Playing Field for Illinois Retail Act, filing the return
11534		-	under this Section on behalf of a remote retailer shall, at the
11535		-	time of such return, pay to the Department the amount of tax
11536		-	imposed by this Act less a discount of 1.75%. A remote retailer
11537		-
11538		-
11539		-	using a certified service provider to file a return on its
11540		-	behalf, as provided in the Leveling the Playing Field for
11541		-	Illinois Retail Act, is not eligible for the discount. When
11542		-	determining the discount allowed under this Section, retailers
11543		-	shall include the amount of tax that would have been due at the
11544		-	1% rate but for the 0% rate imposed under Public Act 102-700
11545		-	this amendatory Act of the 102nd General Assembly. When
11546		-	determining the discount allowed under this Section, retailers
11547		-	shall include the amount of tax that would have been due at the
11548		-	6.25% rate but for the 1.25% rate imposed on sales tax holiday
11549		-	items under Public Act 102-700 this amendatory Act of the
11550		-	102nd General Assembly. The discount under this Section is not
11551		-	allowed for the 1.25% portion of taxes paid on aviation fuel
11552		-	that is subject to the revenue use requirements of 49 U.S.C.
11553		-	47107(b) and 49 U.S.C. 47133. Any prepayment made pursuant to
11554		-	Section 2d of this Act shall be included in the amount on which
11555		-	such 2.1% or 1.75% discount is computed. In the case of
11556		-	retailers who report and pay the tax on a transaction by
11557		-	transaction basis, as provided in this Section, such discount
11558		-	shall be taken with each such tax remittance instead of when
11559		-	such retailer files his periodic return. The discount allowed
11560		-	under this Section is allowed only for returns that are filed
11561		-	in the manner required by this Act. The Department may
11562		-	disallow the discount for retailers whose certificate of
11563		-	registration is revoked at the time the return is filed, but
11564		-	only if the Department's decision to revoke the certificate of
11565		-
11566		-
11567		-	registration has become final.
11568		-	Before October 1, 2000, if the taxpayer's average monthly
11569		-	tax liability to the Department under this Act, the Use Tax
11570		-	Act, the Service Occupation Tax Act, and the Service Use Tax
11571		-	Act, excluding any liability for prepaid sales tax to be
11572		-	remitted in accordance with Section 2d of this Act, was
11573		-	$10,000 or more during the preceding 4 complete calendar
11574		-	quarters, he shall file a return with the Department each
11575		-	month by the 20th day of the month next following the month
11576		-	during which such tax liability is incurred and shall make
11577		-	payments to the Department on or before the 7th, 15th, 22nd and
11578		-	last day of the month during which such liability is incurred.
11579		-	On and after October 1, 2000, if the taxpayer's average
11580		-	monthly tax liability to the Department under this Act, the
11581		-	Use Tax Act, the Service Occupation Tax Act, and the Service
11582		-	Use Tax Act, excluding any liability for prepaid sales tax to
11583		-	be remitted in accordance with Section 2d of this Act, was
11584		-	$20,000 or more during the preceding 4 complete calendar
11585		-	quarters, he shall file a return with the Department each
11586		-	month by the 20th day of the month next following the month
11587		-	during which such tax liability is incurred and shall make
11588		-	payment to the Department on or before the 7th, 15th, 22nd and
11589		-	last day of the month during which such liability is incurred.
11590		-	If the month during which such tax liability is incurred began
11591		-	prior to January 1, 1985, each payment shall be in an amount
11592		-	equal to 1/4 of the taxpayer's actual liability for the month
11593		-
11594		-
11595		-	or an amount set by the Department not to exceed 1/4 of the
11596		-	average monthly liability of the taxpayer to the Department
11597		-	for the preceding 4 complete calendar quarters (excluding the
11598		-	month of highest liability and the month of lowest liability
11599		-	in such 4 quarter period). If the month during which such tax
11600		-	liability is incurred begins on or after January 1, 1985 and
11601		-	prior to January 1, 1987, each payment shall be in an amount
11602		-	equal to 22.5% of the taxpayer's actual liability for the
11603		-	month or 27.5% of the taxpayer's liability for the same
11604		-	calendar month of the preceding year. If the month during
11605		-	which such tax liability is incurred begins on or after
11606		-	January 1, 1987 and prior to January 1, 1988, each payment
11607		-	shall be in an amount equal to 22.5% of the taxpayer's actual
11608		-	liability for the month or 26.25% of the taxpayer's liability
11609		-	for the same calendar month of the preceding year. If the month
11610		-	during which such tax liability is incurred begins on or after
11611		-	January 1, 1988, and prior to January 1, 1989, or begins on or
11612		-	after January 1, 1996, each payment shall be in an amount equal
11613		-	to 22.5% of the taxpayer's actual liability for the month or
11614		-	25% of the taxpayer's liability for the same calendar month of
11615		-	the preceding year. If the month during which such tax
11616		-	liability is incurred begins on or after January 1, 1989, and
11617		-	prior to January 1, 1996, each payment shall be in an amount
11618		-	equal to 22.5% of the taxpayer's actual liability for the
11619		-	month or 25% of the taxpayer's liability for the same calendar
11620		-	month of the preceding year or 100% of the taxpayer's actual
11621		-
11622		-
11623		-	liability for the quarter monthly reporting period. The amount
11624		-	of such quarter monthly payments shall be credited against the
11625		-	final tax liability of the taxpayer's return for that month.
11626		-	Before October 1, 2000, once applicable, the requirement of
11627		-	the making of quarter monthly payments to the Department by
11628		-	taxpayers having an average monthly tax liability of $10,000
11629		-	or more as determined in the manner provided above shall
11630		-	continue until such taxpayer's average monthly liability to
11631		-	the Department during the preceding 4 complete calendar
11632		-	quarters (excluding the month of highest liability and the
11633		-	month of lowest liability) is less than $9,000, or until such
11634		-	taxpayer's average monthly liability to the Department as
11635		-	computed for each calendar quarter of the 4 preceding complete
11636		-	calendar quarter period is less than $10,000. However, if a
11637		-	taxpayer can show the Department that a substantial change in
11638		-	the taxpayer's business has occurred which causes the taxpayer
11639		-	to anticipate that his average monthly tax liability for the
11640		-	reasonably foreseeable future will fall below the $10,000
11641		-	threshold stated above, then such taxpayer may petition the
11642		-	Department for a change in such taxpayer's reporting status.
11643		-	On and after October 1, 2000, once applicable, the requirement
11644		-	of the making of quarter monthly payments to the Department by
11645		-	taxpayers having an average monthly tax liability of $20,000
11646		-	or more as determined in the manner provided above shall
11647		-	continue until such taxpayer's average monthly liability to
11648		-	the Department during the preceding 4 complete calendar
11649		-
11650		-
11651		-	quarters (excluding the month of highest liability and the
11652		-	month of lowest liability) is less than $19,000 or until such
11653		-	taxpayer's average monthly liability to the Department as
11654		-	computed for each calendar quarter of the 4 preceding complete
11655		-	calendar quarter period is less than $20,000. However, if a
11656		-	taxpayer can show the Department that a substantial change in
11657		-	the taxpayer's business has occurred which causes the taxpayer
11658		-	to anticipate that his average monthly tax liability for the
11659		-	reasonably foreseeable future will fall below the $20,000
11660		-	threshold stated above, then such taxpayer may petition the
11661		-	Department for a change in such taxpayer's reporting status.
11662		-	The Department shall change such taxpayer's reporting status
11663		-	unless it finds that such change is seasonal in nature and not
11664		-	likely to be long term. Quarter monthly payment status shall
11665		-	be determined under this paragraph as if the rate reduction to
11666		-	0% in Public Act 102-700 this amendatory Act of the 102nd
11667		-	General Assembly on food for human consumption that is to be
11668		-	consumed off the premises where it is sold (other than
11669		-	alcoholic beverages, food consisting of or infused with adult
11670		-	use cannabis, soft drinks, and food that has been prepared for
11671		-	immediate consumption) had not occurred. For quarter monthly
11672		-	payments due under this paragraph on or after July 1, 2023 and
11673		-	through June 30, 2024, "25% of the taxpayer's liability for
11674		-	the same calendar month of the preceding year" shall be
11675		-	determined as if the rate reduction to 0% in Public Act 102-700
11676		-	this amendatory Act of the 102nd General Assembly had not
11677		-
11678		-
11679		-	occurred. Quarter monthly payment status shall be determined
11680		-	under this paragraph as if the rate reduction to 1.25% in
11681		-	Public Act 102-700 this amendatory Act of the 102nd General
11682		-	Assembly on sales tax holiday items had not occurred. For
11683		-	quarter monthly payments due on or after July 1, 2023 and
11684		-	through June 30, 2024, "25% of the taxpayer's liability for
11685		-	the same calendar month of the preceding year" shall be
11686		-	determined as if the rate reduction to 1.25% in Public Act
11687		-	102-700 this amendatory Act of the 102nd General Assembly on
11688		-	sales tax holiday items had not occurred. If any such quarter
11689		-	monthly payment is not paid at the time or in the amount
11690		-	required by this Section, then the taxpayer shall be liable
11691		-	for penalties and interest on the difference between the
11692		-	minimum amount due as a payment and the amount of such quarter
11693		-	monthly payment actually and timely paid, except insofar as
11694		-	the taxpayer has previously made payments for that month to
11695		-	the Department in excess of the minimum payments previously
11696		-	due as provided in this Section. The Department shall make
11697		-	reasonable rules and regulations to govern the quarter monthly
11698		-	payment amount and quarter monthly payment dates for taxpayers
11699		-	who file on other than a calendar monthly basis.
11700		-	The provisions of this paragraph apply before October 1,
11701		-	2001. Without regard to whether a taxpayer is required to make
11702		-	quarter monthly payments as specified above, any taxpayer who
11703		-	is required by Section 2d of this Act to collect and remit
11704		-	prepaid taxes and has collected prepaid taxes which average in
11705		-
11706		-
11707		-	excess of $25,000 per month during the preceding 2 complete
11708		-	calendar quarters, shall file a return with the Department as
11709		-	required by Section 2f and shall make payments to the
11710		-	Department on or before the 7th, 15th, 22nd and last day of the
11711		-	month during which such liability is incurred. If the month
11712		-	during which such tax liability is incurred began prior to
11713		-	September 1, 1985 (the effective date of Public Act 84-221),
11714		-	each payment shall be in an amount not less than 22.5% of the
11715		-	taxpayer's actual liability under Section 2d. If the month
11716		-	during which such tax liability is incurred begins on or after
11717		-	January 1, 1986, each payment shall be in an amount equal to
11718		-	22.5% of the taxpayer's actual liability for the month or
11719		-	27.5% of the taxpayer's liability for the same calendar month
11720		-	of the preceding calendar year. If the month during which such
11721		-	tax liability is incurred begins on or after January 1, 1987,
11722		-	each payment shall be in an amount equal to 22.5% of the
11723		-	taxpayer's actual liability for the month or 26.25% of the
11724		-	taxpayer's liability for the same calendar month of the
11725		-	preceding year. The amount of such quarter monthly payments
11726		-	shall be credited against the final tax liability of the
11727		-	taxpayer's return for that month filed under this Section or
11728		-	Section 2f, as the case may be. Once applicable, the
11729		-	requirement of the making of quarter monthly payments to the
11730		-	Department pursuant to this paragraph shall continue until
11731		-	such taxpayer's average monthly prepaid tax collections during
11732		-	the preceding 2 complete calendar quarters is $25,000 or less.
11733		-
11734		-
11735		-	If any such quarter monthly payment is not paid at the time or
11736		-	in the amount required, the taxpayer shall be liable for
11737		-	penalties and interest on such difference, except insofar as
11738		-	the taxpayer has previously made payments for that month in
11739		-	excess of the minimum payments previously due.
11740		-	The provisions of this paragraph apply on and after
11741		-	October 1, 2001. Without regard to whether a taxpayer is
11742		-	required to make quarter monthly payments as specified above,
11743		-	any taxpayer who is required by Section 2d of this Act to
11744		-	collect and remit prepaid taxes and has collected prepaid
11745		-	taxes that average in excess of $20,000 per month during the
11746		-	preceding 4 complete calendar quarters shall file a return
11747		-	with the Department as required by Section 2f and shall make
11748		-	payments to the Department on or before the 7th, 15th, 22nd and
11749		-	last day of the month during which the liability is incurred.
11750		-	Each payment shall be in an amount equal to 22.5% of the
11751		-	taxpayer's actual liability for the month or 25% of the
11752		-	taxpayer's liability for the same calendar month of the
11753		-	preceding year. The amount of the quarter monthly payments
11754		-	shall be credited against the final tax liability of the
11755		-	taxpayer's return for that month filed under this Section or
11756		-	Section 2f, as the case may be. Once applicable, the
11757		-	requirement of the making of quarter monthly payments to the
11758		-	Department pursuant to this paragraph shall continue until the
11759		-	taxpayer's average monthly prepaid tax collections during the
11760		-	preceding 4 complete calendar quarters (excluding the month of
11761		-
11762		-
11763		-	highest liability and the month of lowest liability) is less
11764		-	than $19,000 or until such taxpayer's average monthly
11765		-	liability to the Department as computed for each calendar
11766		-	quarter of the 4 preceding complete calendar quarters is less
11767		-	than $20,000. If any such quarter monthly payment is not paid
11768		-	at the time or in the amount required, the taxpayer shall be
11769		-	liable for penalties and interest on such difference, except
11770		-	insofar as the taxpayer has previously made payments for that
11771		-	month in excess of the minimum payments previously due.
11772		-	If any payment provided for in this Section exceeds the
11773		-	taxpayer's liabilities under this Act, the Use Tax Act, the
11774		-	Service Occupation Tax Act and the Service Use Tax Act, as
11775		-	shown on an original monthly return, the Department shall, if
11776		-	requested by the taxpayer, issue to the taxpayer a credit
11777		-	memorandum no later than 30 days after the date of payment. The
11778		-	credit evidenced by such credit memorandum may be assigned by
11779		-	the taxpayer to a similar taxpayer under this Act, the Use Tax
11780		-	Act, the Service Occupation Tax Act or the Service Use Tax Act,
11781		-	in accordance with reasonable rules and regulations to be
11782		-	prescribed by the Department. If no such request is made, the
11783		-	taxpayer may credit such excess payment against tax liability
11784		-	subsequently to be remitted to the Department under this Act,
11785		-	the Use Tax Act, the Service Occupation Tax Act or the Service
11786		-	Use Tax Act, in accordance with reasonable rules and
11787		-	regulations prescribed by the Department. If the Department
11788		-	subsequently determined that all or any part of the credit
11789		-
11790		-
11791		-	taken was not actually due to the taxpayer, the taxpayer's
11792		-	2.1% and 1.75% vendor's discount shall be reduced by 2.1% or
11793		-	1.75% of the difference between the credit taken and that
11794		-	actually due, and that taxpayer shall be liable for penalties
11795		-	and interest on such difference.
11796		-	If a retailer of motor fuel is entitled to a credit under
11797		-	Section 2d of this Act which exceeds the taxpayer's liability
11798		-	to the Department under this Act for the month for which the
11799		-	taxpayer is filing a return, the Department shall issue the
11800		-	taxpayer a credit memorandum for the excess.
11801		-	Beginning January 1, 1990, each month the Department shall
11802		-	pay into the Local Government Tax Fund, a special fund in the
11803		-	State treasury which is hereby created, the net revenue
11804		-	realized for the preceding month from the 1% tax imposed under
11805		-	this Act.
11806		-	Beginning January 1, 1990, each month the Department shall
11807		-	pay into the County and Mass Transit District Fund, a special
11808		-	fund in the State treasury which is hereby created, 4% of the
11809		-	net revenue realized for the preceding month from the 6.25%
11810		-	general rate other than aviation fuel sold on or after
11811		-	December 1, 2019. This exception for aviation fuel only
11812		-	applies for so long as the revenue use requirements of 49
11813		-	U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
11814		-	Beginning August 1, 2000, each month the Department shall
11815		-	pay into the County and Mass Transit District Fund 20% of the
11816		-	net revenue realized for the preceding month from the 1.25%
11817		-
11818		-
11819		-	rate on the selling price of motor fuel and gasohol. If, in any
11820		-	month, the tax on sales tax holiday items, as defined in
11821		-	Section 2-8, is imposed at the rate of 1.25%, then the
11822		-	Department shall pay 20% of the net revenue realized for that
11823		-	month from the 1.25% rate on the selling price of sales tax
11824		-	holiday items into the County and Mass Transit District Fund.
11825		-	Beginning January 1, 1990, each month the Department shall
11826		-	pay into the Local Government Tax Fund 16% of the net revenue
11827		-	realized for the preceding month from the 6.25% general rate
11828		-	on the selling price of tangible personal property other than
11829		-	aviation fuel sold on or after December 1, 2019. This
11830		-	exception for aviation fuel only applies for so long as the
11831		-	revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
11832		-	47133 are binding on the State.
11833		-	For aviation fuel sold on or after December 1, 2019, each
11834		-	month the Department shall pay into the State Aviation Program
11835		-	Fund 20% of the net revenue realized for the preceding month
11836		-	from the 6.25% general rate on the selling price of aviation
11837		-	fuel, less an amount estimated by the Department to be
11838		-	required for refunds of the 20% portion of the tax on aviation
11839		-	fuel under this Act, which amount shall be deposited into the
11840		-	Aviation Fuel Sales Tax Refund Fund. The Department shall only
11841		-	pay moneys into the State Aviation Program Fund and the
11842		-	Aviation Fuel Sales Tax Refund Fund under this Act for so long
11843		-	as the revenue use requirements of 49 U.S.C. 47107(b) and 49
11844		-	U.S.C. 47133 are binding on the State.
11845		-
11846		-
11847		-	Beginning August 1, 2000, each month the Department shall
11848		-	pay into the Local Government Tax Fund 80% of the net revenue
11849		-	realized for the preceding month from the 1.25% rate on the
11850		-	selling price of motor fuel and gasohol. If, in any month, the
11851		-	tax on sales tax holiday items, as defined in Section 2-8, is
11852		-	imposed at the rate of 1.25%, then the Department shall pay 80%
11853		-	of the net revenue realized for that month from the 1.25% rate
11854		-	on the selling price of sales tax holiday items into the Local
11855		-	Government Tax Fund.
11856		-	Beginning October 1, 2009, each month the Department shall
11857		-	pay into the Capital Projects Fund an amount that is equal to
11858		-	an amount estimated by the Department to represent 80% of the
11859		-	net revenue realized for the preceding month from the sale of
11860		-	candy, grooming and hygiene products, and soft drinks that had
11861		-	been taxed at a rate of 1% prior to September 1, 2009 but that
11862		-	are now taxed at 6.25%.
11863		-	Beginning July 1, 2011, each month the Department shall
11864		-	pay into the Clean Air Act Permit Fund 80% of the net revenue
11865		-	realized for the preceding month from the 6.25% general rate
11866		-	on the selling price of sorbents used in Illinois in the
11867		-	process of sorbent injection as used to comply with the
11868		-	Environmental Protection Act or the federal Clean Air Act, but
11869		-	the total payment into the Clean Air Act Permit Fund under this
11870		-	Act and the Use Tax Act shall not exceed $2,000,000 in any
11871		-	fiscal year.
11872		-	Beginning July 1, 2013, each month the Department shall
11873		-
11874		-
11875		-	pay into the Underground Storage Tank Fund from the proceeds
11876		-	collected under this Act, the Use Tax Act, the Service Use Tax
11877		-	Act, and the Service Occupation Tax Act an amount equal to the
11878		-	average monthly deficit in the Underground Storage Tank Fund
11879		-	during the prior year, as certified annually by the Illinois
11880		-	Environmental Protection Agency, but the total payment into
11881		-	the Underground Storage Tank Fund under this Act, the Use Tax
11882		-	Act, the Service Use Tax Act, and the Service Occupation Tax
11883		-	Act shall not exceed $18,000,000 in any State fiscal year. As
11884		-	used in this paragraph, the "average monthly deficit" shall be
11885		-	equal to the difference between the average monthly claims for
11886		-	payment by the fund and the average monthly revenues deposited
11887		-	into the fund, excluding payments made pursuant to this
11888		-	paragraph.
11889		-	Beginning July 1, 2015, of the remainder of the moneys
11890		-	received by the Department under the Use Tax Act, the Service
11891		-	Use Tax Act, the Service Occupation Tax Act, and this Act, each
11892		-	month the Department shall deposit $500,000 into the State
11893		-	Crime Laboratory Fund.
11894		-	Of the remainder of the moneys received by the Department
11895		-	pursuant to this Act, (a) 1.75% thereof shall be paid into the
11896		-	Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
11897		-	and after July 1, 1989, 3.8% thereof shall be paid into the
11898		-	Build Illinois Fund; provided, however, that if in any fiscal
11899		-	year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
11900		-	may be, of the moneys received by the Department and required
11901		-
11902		-
11903		-	to be paid into the Build Illinois Fund pursuant to this Act,
11904		-	Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
11905		-	Act, and Section 9 of the Service Occupation Tax Act, such Acts
11906		-	being hereinafter called the "Tax Acts" and such aggregate of
11907		-	2.2% or 3.8%, as the case may be, of moneys being hereinafter
11908		-	called the "Tax Act Amount", and (2) the amount transferred to
11909		-	the Build Illinois Fund from the State and Local Sales Tax
11910		-	Reform Fund shall be less than the Annual Specified Amount (as
11911		-	hereinafter defined), an amount equal to the difference shall
11912		-	be immediately paid into the Build Illinois Fund from other
11913		-	moneys received by the Department pursuant to the Tax Acts;
11914		-	the "Annual Specified Amount" means the amounts specified
11915		-	below for fiscal years 1986 through 1993:
11916		-	Fiscal YearAnnual Specified Amount1986$54,800,0001987$76,650,0001988$80,480,0001989$88,510,0001990$115,330,0001991$145,470,0001992$182,730,0001993$206,520,000; Fiscal Year Annual Specified Amount 1986 $54,800,000 1987 $76,650,000 1988 $80,480,000 1989 $88,510,000 1990 $115,330,000 1991 $145,470,000 1992 $182,730,000 1993 $206,520,000;
11917		-	Fiscal Year Annual Specified Amount
11918		-	1986 $54,800,000
11919		-	1987 $76,650,000
11920		-	1988 $80,480,000
11921		-	1989 $88,510,000
11922		-	1990 $115,330,000
11923		-	1991 $145,470,000
11924		-	1992 $182,730,000
11925		-	1993 $206,520,000;
11926		-	and means the Certified Annual Debt Service Requirement (as
11927		-	defined in Section 13 of the Build Illinois Bond Act) or the
11928		-	Tax Act Amount, whichever is greater, for fiscal year 1994 and
11929		-	each fiscal year thereafter; and further provided, that if on
11930		-
11931		-
11932		-	Fiscal Year Annual Specified Amount
11933		-	1986 $54,800,000
11934		-	1987 $76,650,000
11935		-	1988 $80,480,000
11936		-	1989 $88,510,000
11937		-	1990 $115,330,000
11938		-	1991 $145,470,000
11939		-	1992 $182,730,000
11940		-	1993 $206,520,000;
11941		-
11942		-
11943		-	the last business day of any month the sum of (1) the Tax Act
11944		-	Amount required to be deposited into the Build Illinois Bond
11945		-	Account in the Build Illinois Fund during such month and (2)
11946		-	the amount transferred to the Build Illinois Fund from the
11947		-	State and Local Sales Tax Reform Fund shall have been less than
11948		-	1/12 of the Annual Specified Amount, an amount equal to the
11949		-	difference shall be immediately paid into the Build Illinois
11950		-	Fund from other moneys received by the Department pursuant to
11951		-	the Tax Acts; and, further provided, that in no event shall the
11952		-	payments required under the preceding proviso result in
11953		-	aggregate payments into the Build Illinois Fund pursuant to
11954		-	this clause (b) for any fiscal year in excess of the greater of
11955		-	(i) the Tax Act Amount or (ii) the Annual Specified Amount for
11956		-	such fiscal year. The amounts payable into the Build Illinois
11957		-	Fund under clause (b) of the first sentence in this paragraph
11958		-	shall be payable only until such time as the aggregate amount
11959		-	on deposit under each trust indenture securing Bonds issued
11960		-	and outstanding pursuant to the Build Illinois Bond Act is
11961		-	sufficient, taking into account any future investment income,
11962		-	to fully provide, in accordance with such indenture, for the
11963		-	defeasance of or the payment of the principal of, premium, if
11964		-	any, and interest on the Bonds secured by such indenture and on
11965		-	any Bonds expected to be issued thereafter and all fees and
11966		-	costs payable with respect thereto, all as certified by the
11967		-	Director of the Bureau of the Budget (now Governor's Office of
11968		-	Management and Budget). If on the last business day of any
11969		-
11970		-
11971		-	month in which Bonds are outstanding pursuant to the Build
11972		-	Illinois Bond Act, the aggregate of moneys deposited in the
11973		-	Build Illinois Bond Account in the Build Illinois Fund in such
11974		-	month shall be less than the amount required to be transferred
11975		-	in such month from the Build Illinois Bond Account to the Build
11976		-	Illinois Bond Retirement and Interest Fund pursuant to Section
11977		-	13 of the Build Illinois Bond Act, an amount equal to such
11978		-	deficiency shall be immediately paid from other moneys
11979		-	received by the Department pursuant to the Tax Acts to the
11980		-	Build Illinois Fund; provided, however, that any amounts paid
11981		-	to the Build Illinois Fund in any fiscal year pursuant to this
11982		-	sentence shall be deemed to constitute payments pursuant to
11983		-	clause (b) of the first sentence of this paragraph and shall
11984		-	reduce the amount otherwise payable for such fiscal year
11985		-	pursuant to that clause (b). The moneys received by the
11986		-	Department pursuant to this Act and required to be deposited
11987		-	into the Build Illinois Fund are subject to the pledge, claim
11988		-	and charge set forth in Section 12 of the Build Illinois Bond
11989		-	Act.
11990		-	Subject to payment of amounts into the Build Illinois Fund
11991		-	as provided in the preceding paragraph or in any amendment
11992		-	thereto hereafter enacted, the following specified monthly
11993		-	installment of the amount requested in the certificate of the
11994		-	Chairman of the Metropolitan Pier and Exposition Authority
11995		-	provided under Section 8.25f of the State Finance Act, but not
11996		-	in excess of sums designated as "Total Deposit", shall be
11997		-
11998		-
11999		-	deposited in the aggregate from collections under Section 9 of
12000		-	the Use Tax Act, Section 9 of the Service Use Tax Act, Section
12001		-	9 of the Service Occupation Tax Act, and Section 3 of the
12002		-	Retailers' Occupation Tax Act into the McCormick Place
12003		-	Expansion Project Fund in the specified fiscal years.
12004		-	Fiscal YearTotal Deposit1993 $01994 53,000,0001995 58,000,0001996 61,000,0001997 64,000,0001998 68,000,0001999 71,000,0002000 75,000,0002001 80,000,0002002 93,000,0002003 99,000,0002004103,000,0002005108,000,0002006113,000,0002007119,000,0002008126,000,0002009132,000,0002010139,000,0002011146,000,0002012153,000,000 Fiscal Year Total Deposit 1993 $0 1994 53,000,000 1995 58,000,000 1996 61,000,000 1997 64,000,000 1998 68,000,000 1999 71,000,000 2000 75,000,000 2001 80,000,000 2002 93,000,000 2003 99,000,000 2004 103,000,000 2005 108,000,000 2006 113,000,000 2007 119,000,000 2008 126,000,000 2009 132,000,000 2010 139,000,000 2011 146,000,000 2012 153,000,000
12005		-	Fiscal Year Total Deposit
12006		-	1993 $0
12007		-	1994 53,000,000
12008		-	1995 58,000,000
12009		-	1996 61,000,000
12010		-	1997 64,000,000
12011		-	1998 68,000,000
12012		-	1999 71,000,000
12013		-	2000 75,000,000
12014		-	2001 80,000,000
12015		-	2002 93,000,000
12016		-	2003 99,000,000
12017		-	2004 103,000,000
12018		-	2005 108,000,000
12019		-	2006 113,000,000
12020		-	2007 119,000,000
12021		-	2008 126,000,000
12022		-	2009 132,000,000
12023		-	2010 139,000,000
12024		-	2011 146,000,000
12025		-	2012 153,000,000
12026		-
12027		-
12028		-	Fiscal Year Total Deposit
12029		-	1993 $0
12030		-	1994 53,000,000
12031		-	1995 58,000,000
12032		-	1996 61,000,000
12033		-	1997 64,000,000
12034		-	1998 68,000,000
12035		-	1999 71,000,000
12036		-	2000 75,000,000
12037		-	2001 80,000,000
12038		-	2002 93,000,000
12039		-	2003 99,000,000
12040		-	2004 103,000,000
12041		-	2005 108,000,000
12042		-	2006 113,000,000
12043		-	2007 119,000,000
12044		-	2008 126,000,000
12045		-	2009 132,000,000
12046		-	2010 139,000,000
12047		-	2011 146,000,000
12048		-	2012 153,000,000
12049		-
12050		-
12051		-	2013161,000,0002014170,000,0002015179,000,0002016189,000,0002017199,000,0002018210,000,0002019221,000,0002020233,000,0002021300,000,0002022300,000,0002023300,000,0002024 300,000,0002025 300,000,0002026 300,000,0002027 375,000,0002028 375,000,0002029 375,000,0002030 375,000,0002031 375,000,0002032 375,000,0002033375,000,0002034375,000,0002035375,000,0002036450,000,000and each fiscal year 2013 161,000,000 2014 170,000,000 2015 179,000,000 2016 189,000,000 2017 199,000,000 2018 210,000,000 2019 221,000,000 2020 233,000,000 2021 300,000,000 2022 300,000,000 2023 300,000,000 2024 300,000,000 2025 300,000,000 2026 300,000,000 2027 375,000,000 2028 375,000,000 2029 375,000,000 2030 375,000,000 2031 375,000,000 2032 375,000,000 2033 375,000,000 2034 375,000,000 2035 375,000,000 2036 450,000,000 and each fiscal year
12052		-	2013 161,000,000
12053		-	2014 170,000,000
12054		-	2015 179,000,000
12055		-	2016 189,000,000
12056		-	2017 199,000,000
12057		-	2018 210,000,000
12058		-	2019 221,000,000
12059		-	2020 233,000,000
12060		-	2021 300,000,000
12061		-	2022 300,000,000
12062		-	2023 300,000,000
12063		-	2024 300,000,000
12064		-	2025 300,000,000
12065		-	2026 300,000,000
12066		-	2027 375,000,000
12067		-	2028 375,000,000
12068		-	2029 375,000,000
12069		-	2030 375,000,000
12070		-	2031 375,000,000
12071		-	2032 375,000,000
12072		-	2033 375,000,000
12073		-	2034 375,000,000
12074		-	2035 375,000,000
12075		-	2036 450,000,000
12076		-	and
12077		-	each fiscal year
12078		-
12079		-	2013 161,000,000
12080		-	2014 170,000,000
12081		-	2015 179,000,000
12082		-	2016 189,000,000
12083		-	2017 199,000,000
12084		-	2018 210,000,000
12085		-	2019 221,000,000
12086		-	2020 233,000,000
12087		-	2021 300,000,000
12088		-	2022 300,000,000
12089		-	2023 300,000,000
12090		-	2024 300,000,000
12091		-	2025 300,000,000
12092		-	2026 300,000,000
12093		-	2027 375,000,000
12094		-	2028 375,000,000
12095		-	2029 375,000,000
12096		-	2030 375,000,000
12097		-	2031 375,000,000
12098		-	2032 375,000,000
12099		-	2033 375,000,000
12100		-	2034 375,000,000
12101		-	2035 375,000,000
12102		-	2036 450,000,000
12103		-	and
12104		-	each fiscal year
12105		-
12106		-
12107		-	thereafter that bonds are outstanding under Section 13.2 of the Metropolitan Pier and Exposition Authority Act, but not after fiscal year 2060. thereafter that bonds are outstanding under Section 13.2 of the Metropolitan Pier and Exposition Authority Act, but not after fiscal year 2060.
12108		-	thereafter that bonds
12109		-	are outstanding under
12110		-	Section 13.2 of the
12111		-	Metropolitan Pier and
12112		-	Exposition Authority Act,
12113		-	but not after fiscal year 2060.
12114		-	Beginning July 20, 1993 and in each month of each fiscal
12115		-	year thereafter, one-eighth of the amount requested in the
12116		-	certificate of the Chairman of the Metropolitan Pier and
12117		-	Exposition Authority for that fiscal year, less the amount
12118		-	deposited into the McCormick Place Expansion Project Fund by
12119		-	the State Treasurer in the respective month under subsection
12120		-	(g) of Section 13 of the Metropolitan Pier and Exposition
12121		-	Authority Act, plus cumulative deficiencies in the deposits
12122		-	required under this Section for previous months and years,
12123		-	shall be deposited into the McCormick Place Expansion Project
12124		-	Fund, until the full amount requested for the fiscal year, but
12125		-	not in excess of the amount specified above as "Total
12126		-	Deposit", has been deposited.
12127		-	Subject to payment of amounts into the Capital Projects
12128		-	Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
12129		-	and the McCormick Place Expansion Project Fund pursuant to the
12130		-	preceding paragraphs or in any amendments thereto hereafter
12131		-	enacted, for aviation fuel sold on or after December 1, 2019,
12132		-	the Department shall each month deposit into the Aviation Fuel
12133		-	Sales Tax Refund Fund an amount estimated by the Department to
12134		-
12135		-	thereafter that bonds
12136		-	are outstanding under
12137		-	Section 13.2 of the
12138		-	Metropolitan Pier and
12139		-	Exposition Authority Act,
12140		-	but not after fiscal year 2060.
12141		-
12142		-
12143		-	be required for refunds of the 80% portion of the tax on
12144		-	aviation fuel under this Act. The Department shall only
12145		-	deposit moneys into the Aviation Fuel Sales Tax Refund Fund
12146		-	under this paragraph for so long as the revenue use
12147		-	requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
12148		-	binding on the State.
12149		-	Subject to payment of amounts into the Build Illinois Fund
12150		-	and the McCormick Place Expansion Project Fund pursuant to the
12151		-	preceding paragraphs or in any amendments thereto hereafter
12152		-	enacted, beginning July 1, 1993 and ending on September 30,
12153		-	2013, the Department shall each month pay into the Illinois
12154		-	Tax Increment Fund 0.27% of 80% of the net revenue realized for
12155		-	the preceding month from the 6.25% general rate on the selling
12156		-	price of tangible personal property.
12157		-	Subject to payment of amounts into the Build Illinois Fund
12158		-	and the McCormick Place Expansion Project Fund pursuant to the
12159		-	preceding paragraphs or in any amendments thereto hereafter
12160		-	enacted, beginning with the receipt of the first report of
12161		-	taxes paid by an eligible business and continuing for a
12162		-	25-year period, the Department shall each month pay into the
12163		-	Energy Infrastructure Fund 80% of the net revenue realized
12164		-	from the 6.25% general rate on the selling price of
12165		-	Illinois-mined coal that was sold to an eligible business. For
12166		-	purposes of this paragraph, the term "eligible business" means
12167		-	a new electric generating facility certified pursuant to
12168		-	Section 605-332 of the Department of Commerce and Economic
12169		-
12170		-
12171		-	Opportunity Law of the Civil Administrative Code of Illinois.
12172		-	Subject to payment of amounts into the Build Illinois
12173		-	Fund, the McCormick Place Expansion Project Fund, the Illinois
12174		-	Tax Increment Fund, and the Energy Infrastructure Fund
12175		-	pursuant to the preceding paragraphs or in any amendments to
12176		-	this Section hereafter enacted, beginning on the first day of
12177		-	the first calendar month to occur on or after August 26, 2014
12178		-	(the effective date of Public Act 98-1098), each month, from
12179		-	the collections made under Section 9 of the Use Tax Act,
12180		-	Section 9 of the Service Use Tax Act, Section 9 of the Service
12181		-	Occupation Tax Act, and Section 3 of the Retailers' Occupation
12182		-	Tax Act, the Department shall pay into the Tax Compliance and
12183		-	Administration Fund, to be used, subject to appropriation, to
12184		-	fund additional auditors and compliance personnel at the
12185		-	Department of Revenue, an amount equal to 1/12 of 5% of 80% of
12186		-	the cash receipts collected during the preceding fiscal year
12187		-	by the Audit Bureau of the Department under the Use Tax Act,
12188		-	the Service Use Tax Act, the Service Occupation Tax Act, the
12189		-	Retailers' Occupation Tax Act, and associated local occupation
12190		-	and use taxes administered by the Department.
12191		-	Subject to payments of amounts into the Build Illinois
12192		-	Fund, the McCormick Place Expansion Project Fund, the Illinois
12193		-	Tax Increment Fund, the Energy Infrastructure Fund, and the
12194		-	Tax Compliance and Administration Fund as provided in this
12195		-	Section, beginning on July 1, 2018 the Department shall pay
12196		-	each month into the Downstate Public Transportation Fund the
12197		-
12198		-
12199		-	moneys required to be so paid under Section 2-3 of the
12200		-	Downstate Public Transportation Act.
12201		-	Subject to successful execution and delivery of a
12202		-	public-private agreement between the public agency and private
12203		-	entity and completion of the civic build, beginning on July 1,
12204		-	2023, of the remainder of the moneys received by the
12205		-	Department under the Use Tax Act, the Service Use Tax Act, the
12206		-	Service Occupation Tax Act, and this Act, the Department shall
12207		-	deposit the following specified deposits in the aggregate from
12208		-	collections under the Use Tax Act, the Service Use Tax Act, the
12209		-	Service Occupation Tax Act, and the Retailers' Occupation Tax
12210		-	Act, as required under Section 8.25g of the State Finance Act
12211		-	for distribution consistent with the Public-Private
12212		-	Partnership for Civic and Transit Infrastructure Project Act.
12213		-	The moneys received by the Department pursuant to this Act and
12214		-	required to be deposited into the Civic and Transit
12215		-	Infrastructure Fund are subject to the pledge, claim and
12216		-	charge set forth in Section 25-55 of the Public-Private
12217		-	Partnership for Civic and Transit Infrastructure Project Act.
12218		-	As used in this paragraph, "civic build", "private entity",
12219		-	"public-private agreement", and "public agency" have the
12220		-	meanings provided in Section 25-10 of the Public-Private
12221		-	Partnership for Civic and Transit Infrastructure Project Act.
12222		-	Fiscal Year.............................Total Deposit
12223		-	2024.....................................$200,000,000
12224		-	2025....................................$206,000,000
12225		-
12226		-
12227		-	2026....................................$212,200,000
12228		-	2027....................................$218,500,000
12229		-	2028....................................$225,100,000
12230		-	2029....................................$288,700,000
12231		-	2030....................................$298,900,000
12232		-	2031....................................$309,300,000
12233		-	2032....................................$320,100,000
12234		-	2033....................................$331,200,000
12235		-	2034....................................$341,200,000
12236		-	2035....................................$351,400,000
12237		-	2036....................................$361,900,000
12238		-	2037....................................$372,800,000
12239		-	2038....................................$384,000,000
12240		-	2039....................................$395,500,000
12241		-	2040....................................$407,400,000
12242		-	2041....................................$419,600,000
12243		-	2042....................................$432,200,000
12244		-	2043....................................$445,100,000
12245		-	Beginning July 1, 2021 and until July 1, 2022, subject to
12246		-	the payment of amounts into the County and Mass Transit
12247		-	District Fund, the Local Government Tax Fund, the Build
12248		-	Illinois Fund, the McCormick Place Expansion Project Fund, the
12249		-	Illinois Tax Increment Fund, the Energy Infrastructure Fund,
12250		-	and the Tax Compliance and Administration Fund as provided in
12251		-	this Section, the Department shall pay each month into the
12252		-	Road Fund the amount estimated to represent 16% of the net
12253		-
12254		-
12255		-	revenue realized from the taxes imposed on motor fuel and
12256		-	gasohol. Beginning July 1, 2022 and until July 1, 2023,
12257		-	subject to the payment of amounts into the County and Mass
12258		-	Transit District Fund, the Local Government Tax Fund, the
12259		-	Build Illinois Fund, the McCormick Place Expansion Project
12260		-	Fund, the Illinois Tax Increment Fund, the Energy
12261		-	Infrastructure Fund, and the Tax Compliance and Administration
12262		-	Fund as provided in this Section, the Department shall pay
12263		-	each month into the Road Fund the amount estimated to
12264		-	represent 32% of the net revenue realized from the taxes
12265		-	imposed on motor fuel and gasohol. Beginning July 1, 2023 and
12266		-	until July 1, 2024, subject to the payment of amounts into the
12267		-	County and Mass Transit District Fund, the Local Government
12268		-	Tax Fund, the Build Illinois Fund, the McCormick Place
12269		-	Expansion Project Fund, the Illinois Tax Increment Fund, the
12270		-	Energy Infrastructure Fund, and the Tax Compliance and
12271		-	Administration Fund as provided in this Section, the
12272		-	Department shall pay each month into the Road Fund the amount
12273		-	estimated to represent 48% of the net revenue realized from
12274		-	the taxes imposed on motor fuel and gasohol. Beginning July 1,
12275		-	2024 and until July 1, 2025, subject to the payment of amounts
12276		-	into the County and Mass Transit District Fund, the Local
12277		-	Government Tax Fund, the Build Illinois Fund, the McCormick
12278		-	Place Expansion Project Fund, the Illinois Tax Increment Fund,
12279		-	the Energy Infrastructure Fund, and the Tax Compliance and
12280		-	Administration Fund as provided in this Section, the
12281		-
12282		-
12283		-	Department shall pay each month into the Road Fund the amount
12284		-	estimated to represent 64% of the net revenue realized from
12285		-	the taxes imposed on motor fuel and gasohol. Beginning on July
12286		-	1, 2025, subject to the payment of amounts into the County and
12287		-	Mass Transit District Fund, the Local Government Tax Fund, the
12288		-	Build Illinois Fund, the McCormick Place Expansion Project
12289		-	Fund, the Illinois Tax Increment Fund, the Energy
12290		-	Infrastructure Fund, and the Tax Compliance and Administration
12291		-	Fund as provided in this Section, the Department shall pay
12292		-	each month into the Road Fund the amount estimated to
12293		-	represent 80% of the net revenue realized from the taxes
12294		-	imposed on motor fuel and gasohol. As used in this paragraph
12295		-	"motor fuel" has the meaning given to that term in Section 1.1
12296		-	of the Motor Fuel Tax Law, and "gasohol" has the meaning given
12297		-	to that term in Section 3-40 of the Use Tax Act.
12298		-	Of the remainder of the moneys received by the Department
12299		-	pursuant to this Act, 75% thereof shall be paid into the State
12300		-	treasury Treasury and 25% shall be reserved in a special
12301		-	account and used only for the transfer to the Common School
12302		-	Fund as part of the monthly transfer from the General Revenue
12303		-	Fund in accordance with Section 8a of the State Finance Act.
12304		-	The Department may, upon separate written notice to a
12305		-	taxpayer, require the taxpayer to prepare and file with the
12306		-	Department on a form prescribed by the Department within not
12307		-	less than 60 days after receipt of the notice an annual
12308		-	information return for the tax year specified in the notice.
12309		-
12310		-
12311		-	Such annual return to the Department shall include a statement
12312		-	of gross receipts as shown by the retailer's last Federal
12313		-	income tax return. If the total receipts of the business as
12314		-	reported in the Federal income tax return do not agree with the
12315		-	gross receipts reported to the Department of Revenue for the
12316		-	same period, the retailer shall attach to his annual return a
12317		-	schedule showing a reconciliation of the 2 amounts and the
12318		-	reasons for the difference. The retailer's annual return to
12319		-	the Department shall also disclose the cost of goods sold by
12320		-	the retailer during the year covered by such return, opening
12321		-	and closing inventories of such goods for such year, costs of
12322		-	goods used from stock or taken from stock and given away by the
12323		-	retailer during such year, payroll information of the
12324		-	retailer's business during such year and any additional
12325		-	reasonable information which the Department deems would be
12326		-	helpful in determining the accuracy of the monthly, quarterly
12327		-	or annual returns filed by such retailer as provided for in
12328		-	this Section.
12329		-	If the annual information return required by this Section
12330		-	is not filed when and as required, the taxpayer shall be liable
12331		-	as follows:
12332		-	(i) Until January 1, 1994, the taxpayer shall be
12333		-	liable for a penalty equal to 1/6 of 1% of the tax due from
12334		-	such taxpayer under this Act during the period to be
12335		-	covered by the annual return for each month or fraction of
12336		-	a month until such return is filed as required, the
12337		-
12338		-
12339		-	penalty to be assessed and collected in the same manner as
12340		-	any other penalty provided for in this Act.
12341		-	(ii) On and after January 1, 1994, the taxpayer shall
12342		-	be liable for a penalty as described in Section 3-4 of the
12343		-	Uniform Penalty and Interest Act.
12344		-	The chief executive officer, proprietor, owner or highest
12345		-	ranking manager shall sign the annual return to certify the
12346		-	accuracy of the information contained therein. Any person who
12347		-	willfully signs the annual return containing false or
12348		-	inaccurate information shall be guilty of perjury and punished
12349		-	accordingly. The annual return form prescribed by the
12350		-	Department shall include a warning that the person signing the
12351		-	return may be liable for perjury.
12352		-	The provisions of this Section concerning the filing of an
12353		-	annual information return do not apply to a retailer who is not
12354		-	required to file an income tax return with the United States
12355		-	Government.
12356		-	As soon as possible after the first day of each month, upon
12357		-	certification of the Department of Revenue, the Comptroller
12358		-	shall order transferred and the Treasurer shall transfer from
12359		-	the General Revenue Fund to the Motor Fuel Tax Fund an amount
12360		-	equal to 1.7% of 80% of the net revenue realized under this Act
12361		-	for the second preceding month. Beginning April 1, 2000, this
12362		-	transfer is no longer required and shall not be made.
12363		-	Net revenue realized for a month shall be the revenue
12364		-	collected by the State pursuant to this Act, less the amount
12365		-
12366		-
12367		-	paid out during that month as refunds to taxpayers for
12368		-	overpayment of liability.
12369		-	For greater simplicity of administration, manufacturers,
12370		-	importers and wholesalers whose products are sold at retail in
12371		-	Illinois by numerous retailers, and who wish to do so, may
12372		-	assume the responsibility for accounting and paying to the
12373		-	Department all tax accruing under this Act with respect to
12374		-	such sales, if the retailers who are affected do not make
12375		-	written objection to the Department to this arrangement.
12376		-	Any person who promotes, organizes, provides retail
12377		-	selling space for concessionaires or other types of sellers at
12378		-	the Illinois State Fair, DuQuoin State Fair, county fairs,
12379		-	local fairs, art shows, flea markets and similar exhibitions
12380		-	or events, including any transient merchant as defined by
12381		-	Section 2 of the Transient Merchant Act of 1987, is required to
12382		-	file a report with the Department providing the name of the
12383		-	merchant's business, the name of the person or persons engaged
12384		-	in merchant's business, the permanent address and Illinois
12385		-	Retailers Occupation Tax Registration Number of the merchant,
12386		-	the dates and location of the event and other reasonable
12387		-	information that the Department may require. The report must
12388		-	be filed not later than the 20th day of the month next
12389		-	following the month during which the event with retail sales
12390		-	was held. Any person who fails to file a report required by
12391		-	this Section commits a business offense and is subject to a
12392		-	fine not to exceed $250.
12393		-
12394		-
12395		-	Any person engaged in the business of selling tangible
12396		-	personal property at retail as a concessionaire or other type
12397		-	of seller at the Illinois State Fair, county fairs, art shows,
12398		-	flea markets and similar exhibitions or events, or any
12399		-	transient merchants, as defined by Section 2 of the Transient
12400		-	Merchant Act of 1987, may be required to make a daily report of
12401		-	the amount of such sales to the Department and to make a daily
12402		-	payment of the full amount of tax due. The Department shall
12403		-	impose this requirement when it finds that there is a
12404		-	significant risk of loss of revenue to the State at such an
12405		-	exhibition or event. Such a finding shall be based on evidence
12406		-	that a substantial number of concessionaires or other sellers
12407		-	who are not residents of Illinois will be engaging in the
12408		-	business of selling tangible personal property at retail at
12409		-	the exhibition or event, or other evidence of a significant
12410		-	risk of loss of revenue to the State. The Department shall
12411		-	notify concessionaires and other sellers affected by the
12412		-	imposition of this requirement. In the absence of notification
12413		-	by the Department, the concessionaires and other sellers shall
12414		-	file their returns as otherwise required in this Section.
12415		-	(Source: P.A. 101-10, Article 15, Section 15-25, eff. 6-5-19;
12416		-	101-10, Article 25, Section 25-120, eff. 6-5-19; 101-27, eff.
12417		-	6-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
12418		-	101-636, eff. 6-10-20; 102-634, eff. 8-27-21; 102-700, Article
12419		-	60, Section 60-30, eff. 4-19-22; 102-700, Article 65, Section
12420		-	65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff.
12421		-
12422		-
12423		-	1-1-23; revised 12-13-22.)
12424		-	ARTICLE 75. REV ILLINOIS PROGRAM
12425		-	Section 75-5. The Reimagining Energy and Vehicles in
12426		-	Illinois Act is amended by changing Sections 20, 30, 40, and 45
12427		-	as follows:
12428		-	(20 ILCS 686/20)
12429		-	Sec. 20. REV Illinois Program; project applications.
12430		-	(a) The Reimagining Energy and Vehicles in Illinois (REV
12431		-	Illinois) Program is hereby established and shall be
12432		-	administered by the Department. The Program will provide
12433		-	financial incentives to any one or more of the following: (1)
12434		-	eligible manufacturers of electric vehicles, electric vehicle
12435		-	component parts, and electric vehicle power supply equipment;
12436		-	(2) battery recycling and reuse manufacturers; (3) battery raw
12437		-	materials refining service providers; or (4) renewable energy
12438		-	manufacturers.
12439		-	(b) Any taxpayer planning a project to be located in
12440		-	Illinois may request consideration for designation of its
12441		-	project as a REV Illinois Project, by formal written letter of
12442		-	request or by formal application to the Department, in which
12443		-	the applicant states its intent to make at least a specified
12444		-	level of investment and intends to hire a specified number of
12445		-	full-time employees at a designated location in Illinois. As
12446		-
12447		-
12448		-	circumstances require, the Department shall require a formal
12449		-	application from an applicant and a formal letter of request
12450		-	for assistance.
12451		-	(c) In order to qualify for credits under the REV Illinois
12452		-	Program, an applicant must:
12453		-	(1) if the applicant is an electric vehicle
12454		-	manufacturer:
12455		-	(A) make an investment of at least $1,500,000,000
12456		-	in capital improvements at the project site;
12457		-	(B) to be placed in service within the State
12458		-	within a 60-month period after approval of the
12459		-	application; and
12460		-	(C) create at least 500 new full-time employee
12461		-	jobs; or
12462		-	(2) if the applicant is an electric vehicle component
12463		-	parts manufacturer or a renewable energy manufacturer:
12464		-	(A) make an investment of at least $300,000,000 in
12465		-	capital improvements at the project site;
12466		-	(B) manufacture one or more parts that are
12467		-	primarily used for electric vehicle manufacturing;
12468		-	(C) to be placed in service within the State
12469		-	within a 60-month period after approval of the
12470		-	application; and
12471		-	(D) create at least 150 new full-time employee
12472		-	jobs; or
12473		-	(3) if the agreement is entered into before the
12474		-
12475		-
12476		-	effective date of this amendatory Act of the 102nd General
12477		-	Assembly and the applicant is an electric vehicle
12478		-	manufacturer, an electric vehicle power supply equipment
12479		-	manufacturer, an electric vehicle component part
12480		-	manufacturer that does not qualify under paragraph (2)
12481		-	above, a battery recycling and reuse manufacturer, or a
12482		-	battery raw materials refining service provider:
12483		-	(A) make an investment of at least $20,000,000 in
12484		-	capital improvements at the project site;
12485		-	(B) for electric vehicle component part
12486		-	manufacturers, manufacture one or more parts that are
12487		-	primarily used for electric vehicle manufacturing;
12488		-	(C) to be placed in service within the State
12489		-	within a 48-month period after approval of the
12490		-	application; and
12491		-	(D) create at least 50 new full-time employee
12492		-	jobs; or
12493		-	(3.1) if the agreement is entered into on or after the
12494		-	effective date of this amendatory Act of the 102nd General
12495		-	Assembly and the applicant is an electric vehicle
12496		-	manufacturer, an electric vehicle power supply equipment
12497		-	manufacturer, an electric vehicle component part
12498		-	manufacturer that does not qualify under paragraph (2)
12499		-	above, a renewable energy manufacturer that does not
12500		-	qualify under paragraph (2) above, a battery recycling and
12501		-	reuse manufacturer, or a battery raw materials refining
12502		-
12503		-
12504		-	service provider:
12505		-	(A) make an investment of at least $2,500,000 in
12506		-	capital improvements at the project site;
12507		-	(B) in the case of electric vehicle component part
12508		-	manufacturers, manufacture one or more parts that are
12509		-	used for electric vehicle manufacturing;
12510		-	(C) to be placed in service within the State
12511		-	within a 48-month period after approval of the
12512		-	application; and
12513		-	(D) create the lesser of 50 new full-time employee
12514		-	jobs or new full-time employee jobs equivalent to 10%
12515		-	of the Statewide baseline applicable to the taxpayer
12516		-	and any related member at the time of application; or
12517		-	(4) if the agreement is entered into before the
12518		-	effective date of this amendatory Act of the 102nd General
12519		-	Assembly and the applicant is an electric vehicle
12520		-	manufacturer or electric vehicle component parts
12521		-	manufacturer with existing operations within Illinois that
12522		-	intends to convert or expand, in whole or in part, the
12523		-	existing facility from traditional manufacturing to
12524		-	primarily electric vehicle manufacturing, electric vehicle
12525		-	component parts manufacturing, or electric vehicle power
12526		-	supply equipment manufacturing:
12527		-	(A) make an investment of at least $100,000,000 in
12528		-	capital improvements at the project site;
12529		-	(B) to be placed in service within the State
12530		-
12531		-
12532		-	within a 60-month period after approval of the
12533		-	application; and
12534		-	(C) create the lesser of 75 new full-time employee
12535		-	jobs or new full-time employee jobs equivalent to 10%
12536		-	of the Statewide baseline applicable to the taxpayer
12537		-	and any related member at the time of application; or
12538		-	(4.1) if the agreement is entered into on or after the
12539		-	effective date of this amendatory Act of the 102nd General
12540		-	Assembly and the applicant (i) is an electric vehicle
12541		-	manufacturer, an electric vehicle component parts
12542		-	manufacturer, or a renewable energy manufacturer and (ii)
12543		-	has existing operations within Illinois that the applicant
12544		-	intends to convert or expand, in whole or in part, from
12545		-	traditional manufacturing to electric vehicle
12546		-	manufacturing, electric vehicle component parts
12547		-	manufacturing, renewable energy manufacturing, or electric
12548		-	vehicle power supply equipment manufacturing:
12549		-	(A) make an investment of at least $100,000,000 in
12550		-	capital improvements at the project site;
12551		-	(B) to be placed in service within the State
12552		-	within a 60-month period after approval of the
12553		-	application; and
12554		-	(C) create the lesser of 50 new full-time employee
12555		-	jobs or new full-time employee jobs equivalent to 10%
12556		-	of the Statewide baseline applicable to the taxpayer
12557		-	and any related member at the time of application; or .
12558		-
12559		-
12560		-	(5) if the agreement is entered into on or after the
12561		-	effective date of the changes made to this Section by this
12562		-	amendatory Act of the 103rd General Assembly and before
12563		-	June 1, 2024 and the applicant (i) is an electric vehicle
12564		-	manufacturer, an electric vehicle component parts
12565		-	manufacturer, or a renewable energy manufacturer or (ii)
12566		-	has existing operations within Illinois that the applicant
12567		-	intends to convert or expand, in whole or in part, from
12568		-	traditional manufacturing to electric vehicle
12569		-	manufacturing, electric vehicle component parts
12570		-	manufacturing, renewable energy manufacturing, or electric
12571		-	vehicle power supply equipment manufacturing:
12572		-	(A) make an investment of at least $500,000,000 in
12573		-	capital improvements at the project site;
12574		-	(B) to be placed in service within the State
12575		-	within a 60-month period after approval of the
12576		-	application; and
12577		-	(C) retain at least 800 full-time employee jobs at
12578		-	the project.
12579		-	(d) For agreements entered into prior to April 19, 2022
12580		-	(the effective date of Public Act 102-700), for any applicant
12581		-	creating the full-time employee jobs noted in subsection (c),
12582		-	those jobs must have a total compensation equal to or greater
12583		-	than 120% of the average wage paid to full-time employees in
12584		-	the county where the project is located, as determined by the
12585		-	U.S. Bureau of Labor Statistics. For agreements entered into
12586		-
12587		-
12588		-	on or after April 19, 2022 (the effective date of Public Act
12589		-	102-700), for any applicant creating the full-time employee
12590		-	jobs noted in subsection (c), those jobs must have a
12591		-	compensation equal to or greater than 120% of the average wage
12592		-	paid to full-time employees in a similar position within an
12593		-	occupational group in the county where the project is located,
12594		-	as determined by the Department.
12595		-	(e) For any applicant, within 24 months after being placed
12596		-	in service, it must certify to the Department that it is carbon
12597		-	neutral or has attained certification under one of more of the
12598		-	following green building standards:
12599		-	(1) BREEAM for New Construction or BREEAM In-Use;
12600		-	(2) ENERGY STAR;
12601		-	(3) Envision;
12602		-	(4) ISO 50001 - energy management;
12603		-	(5) LEED for Building Design and Construction or LEED
12604		-	for Building Operations and Maintenance;
12605		-	(6) Green Globes for New Construction or Green Globes
12606		-	for Existing Buildings; or
12607		-	(7) UL 3223.
12608		-	(f) Each applicant must outline its hiring plan and
12609		-	commitment to recruit and hire full-time employee positions at
12610		-	the project site. The hiring plan may include a partnership
12611		-	with an institution of higher education to provide
12612		-	internships, including, but not limited to, internships
12613		-	supported by the Clean Jobs Workforce Network Program, or
12614		-
12615		-
12616		-	full-time permanent employment for students at the project
12617		-	site. Additionally, the applicant may create or utilize
12618		-	participants from apprenticeship programs that are approved by
12619		-	and registered with the United States Department of Labor's
12620		-	Bureau of Apprenticeship and Training. The applicant may apply
12621		-	for apprenticeship education expense credits in accordance
12622		-	with the provisions set forth in 14 Ill. Adm. Code 522. Each
12623		-	applicant is required to report annually, on or before April
12624		-	15, on the diversity of its workforce in accordance with
12625		-	Section 50 of this Act. For existing facilities of applicants
12626		-	under paragraph (3) of subsection (b) above, if the taxpayer
12627		-	expects a reduction in force due to its transition to
12628		-	manufacturing electric vehicle, electric vehicle component
12629		-	parts, or electric vehicle power supply equipment, the plan
12630		-	submitted under this Section must outline the taxpayer's plan
12631		-	to assist with retraining its workforce aligned with the
12632		-	taxpayer's adoption of new technologies and anticipated
12633		-	efforts to retrain employees through employment opportunities
12634		-	within the taxpayer's workforce.
12635		-	(g) Each applicant must demonstrate a contractual or other
12636		-	relationship with a recycling facility, or demonstrate its own
12637		-	recycling capabilities, at the time of application and report
12638		-	annually a continuing contractual or other relationship with a
12639		-	recycling facility and the percentage of batteries used in
12640		-	electric vehicles recycled throughout the term of the
12641		-	agreement.
12642		-
12643		-
12644		-	(h) A taxpayer may not enter into more than one agreement
12645		-	under this Act with respect to a single address or location for
12646		-	the same period of time. Also, a taxpayer may not enter into an
12647		-	agreement under this Act with respect to a single address or
12648		-	location for the same period of time for which the taxpayer
12649		-	currently holds an active agreement under the Economic
12650		-	Development for a Growing Economy Tax Credit Act. This
12651		-	provision does not preclude the applicant from entering into
12652		-	an additional agreement after the expiration or voluntary
12653		-	termination of an earlier agreement under this Act or under
12654		-	the Economic Development for a Growing Economy Tax Credit Act
12655		-	to the extent that the taxpayer's application otherwise
12656		-	satisfies the terms and conditions of this Act and is approved
12657		-	by the Department. An applicant with an existing agreement
12658		-	under the Economic Development for a Growing Economy Tax
12659		-	Credit Act may submit an application for an agreement under
12660		-	this Act after it terminates any existing agreement under the
12661		-	Economic Development for a Growing Economy Tax Credit Act with
12662		-	respect to the same address or location. If a project that is
12663		-	subject to an existing agreement under the Economic
12664		-	Development for a Growing Economy Tax Credit Act meets the
12665		-	requirements to be designated as a REV Illinois project under
12666		-	this Act, including for actions undertaken prior to the
12667		-	effective date of this Act, the taxpayer that is subject to
12668		-	that existing agreement under the Economic Development for a
12669		-	Growing Economy Tax Credit Act may apply to the Department to
12670		-
12671		-
12672		-	amend the agreement to allow the project to become a
12673		-	designated REV Illinois project. Following the amendment, time
12674		-	accrued during which the project was eligible for credits
12675		-	under the existing agreement under the Economic Development
12676		-	for a Growing Economy Tax Credit Act shall count toward the
12677		-	duration of the credit subject to limitations described in
12678		-	Section 40 of this Act.
12679		-	(i) If, at any time following the designation of a project
12680		-	as a REV Illinois Project by the Department and prior to the
12681		-	termination or expiration of an agreement under this Act, the
12682		-	project ceases to qualify as a REV Illinois project because
12683		-	the taxpayer is no longer an electric vehicle manufacturer, an
12684		-	electric vehicle component manufacturer, an electric vehicle
12685		-	power supply equipment manufacturer, a battery recycling and
12686		-	reuse manufacturer, or a battery raw materials refining
12687		-	service provider, that project may receive tax credit awards
12688		-	as described in Section 5-15 and Section 5-51 of the Economic
12689		-	Development for a Growing Economy Tax Credit Act, as long as
12690		-	the project continues to meet requirements to obtain those
12691		-	credits as described in the Economic Development for a Growing
12692		-	Economy Tax Credit Act and remains compliant with terms
12693		-	contained in the Agreement under this Act not related to their
12694		-	status as an electric vehicle manufacturer, an electric
12695		-	vehicle component manufacturer, an electric vehicle power
12696		-	supply equipment manufacturer, a battery recycling and reuse
12697		-	manufacturer, or a battery raw materials refining service
12698		-
12699		-
12700		-	provider. Time accrued during which the project was eligible
12701		-	for credits under an agreement under this Act shall count
12702		-	toward the duration of the credit subject to limitations
12703		-	described in Section 5-45 of the Economic Development for a
12704		-	Growing Economy Tax Credit Act.
12705		-	(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
12706		-	102-1112, eff. 12-21-22; 102-1125, eff. 2-3-23.)
12707		-	(20 ILCS 686/30)
12708		-	Sec. 30. Tax credit awards.
12709		-	(a) Subject to the conditions set forth in this Act, a
12710		-	taxpayer is entitled to a credit against the tax imposed
12711		-	pursuant to subsections (a) and (b) of Section 201 of the
12712		-	Illinois Income Tax Act for a taxable year beginning on or
12713		-	after January 1, 2025 if the taxpayer is awarded a credit by
12714		-	the Department in accordance with an agreement under this Act.
12715		-	The Department has authority to award credits under this Act
12716		-	on and after January 1, 2022.
12717		-	(b) REV Illinois Credits. A taxpayer may receive a tax
12718		-	credit against the tax imposed under subsections (a) and (b)
12719		-	of Section 201 of the Illinois Income Tax Act, not to exceed
12720		-	the sum of (i) 75% of the incremental income tax attributable
12721		-	to new employees at the applicant's project and (ii) 10% of the
12722		-	training costs of the new employees. If the project is located
12723		-	in an underserved area or an energy transition area, then the
12724		-	amount of the credit may not exceed the sum of (i) 100% of the
12725		-
12726		-
12727		-	incremental income tax attributable to new employees at the
12728		-	applicant's project; and (ii) 10% of the training costs of the
12729		-	new employees. The percentage of training costs includable in
12730		-	the calculation may be increased by an additional 15% for
12731		-	training costs associated with new employees that are recent
12732		-	(2 years or less) graduates, certificate holders, or
12733		-	credential recipients from an institution of higher education
12734		-	in Illinois, or, if the training is provided by an institution
12735		-	of higher education in Illinois, the Clean Jobs Workforce
12736		-	Network Program, or an apprenticeship and training program
12737		-	located in Illinois and approved by and registered with the
12738		-	United States Department of Labor's Bureau of Apprenticeship
12739		-	and Training. An applicant is also eligible for a training
12740		-	credit that shall not exceed 10% of the training costs of
12741		-	retained employees for the purpose of upskilling to meet the
12742		-	operational needs of the applicant or the REV Illinois
12743		-	Project. The percentage of training costs includable in the
12744		-	calculation shall not exceed a total of 25%. If an applicant
12745		-	agrees to hire the required number of new employees, then the
12746		-	maximum amount of the credit for that applicant may be
12747		-	increased by an amount not to exceed 75% of the incremental
12748		-	income tax attributable to retained employees at the
12749		-	applicant's project; provided that, in order to receive the
12750		-	increase for retained employees, the applicant must, if
12751		-	applicable, meet or exceed the statewide baseline. For
12752		-	agreements entered into on or after the effective date of this
12753		-
12754		-
12755		-	amendatory Act of the 103rd General Assembly and before June
12756		-	1, 2024 that qualify under paragraph (5) of subsection (c) of
12757		-	Section 20, a taxpayer may receive a tax credit not to exceed
12758		-	75% of the incremental income tax attributable to retained
12759		-	employees at the applicant's project. If the project is in an
12760		-	underserved area or an energy transition area and qualifies
12761		-	under paragraph (5) of subsection (c) of Section 20, then the
12762		-	maximum amount of the credit attributable to retained
12763		-	employees for the applicant may be increased to an amount not
12764		-	to exceed 100% of the incremental income tax attributable to
12765		-	retained employees at the applicant's project.
12766		-	If the Project is in an underserved area or an energy
12767		-	transition area, the maximum amount of the credit attributable
12768		-	to retained employees for the applicant may be increased to an
12769		-	amount not to exceed 100% of the incremental income tax
12770		-	attributable to retained employees at the applicant's project;
12771		-	provided that, in order to receive the increase for retained
12772		-	employees, the applicant must meet or exceed the statewide
12773		-	baseline. REV Illinois Credits awarded may include credit
12774		-	earned for incremental income tax withheld and training costs
12775		-	incurred by the taxpayer beginning on or after January 1,
12776		-	2022. Credits so earned and certified by the Department may be
12777		-	applied against the tax imposed by subsections (a) and (b) of
12778		-	Section 201 of the Illinois Income Tax Act for taxable years
12779		-	beginning on or after January 1, 2025.
12780		-	(c) REV Construction Jobs Credit. For construction wages
12781		-
12782		-
12783		-	associated with a project that qualified for a REV Illinois
12784		-	Credit under subsection (b), the taxpayer may receive a tax
12785		-	credit against the tax imposed under subsections (a) and (b)
12786		-	of Section 201 of the Illinois Income Tax Act in an amount
12787		-	equal to 50% of the incremental income tax attributable to
12788		-	construction wages paid in connection with construction of the
12789		-	project facilities, as a jobs credit for workers hired to
12790		-	construct the project.
12791		-	The REV Construction Jobs Credit may not exceed 75% of the
12792		-	amount of the incremental income tax attributable to
12793		-	construction wages paid in connection with construction of the
12794		-	project facilities if the project is in an underserved area or
12795		-	an energy transition area.
12796		-	(d) The Department shall certify to the Department of
12797		-	Revenue: (1) the identity of Taxpayers that are eligible for
12798		-	the REV Illinois Credit and REV Construction Jobs Credit; (2)
12799		-	the amount of the REV Illinois Credits and REV Construction
12800		-	Jobs Credits awarded in each calendar year; and (3) the amount
12801		-	of the REV Illinois Credit and REV Construction Jobs Credit
12802		-	claimed in each calendar year. REV Illinois Credits awarded
12803		-	may include credit earned for Incremental Income Tax withheld
12804		-	and Training Costs incurred by the Taxpayer beginning on or
12805		-	after January 1, 2022. Credits so earned and certified by the
12806		-	Department may be applied against the tax imposed by Section
12807		-	201(a) and (b) of the Illinois Income Tax Act for taxable years
12808		-	beginning on or after January 1, 2025.
12809		-
12810		-
12811		-	(e) Applicants seeking certification for a tax credits
12812		-	related to the construction of the project facilities in the
12813		-	State shall require the contractor to enter into a project
12814		-	labor agreement that conforms with the Project Labor
12815		-	Agreements Act.
12816		-	(f) Any applicant issued a certificate for a tax credit or
12817		-	tax exemption under this Act must annually report to the
12818		-	Department the total project tax benefits received. Reports
12819		-	are due no later than May 31 of each year and shall cover the
12820		-	previous calendar year. The first report is for the 2022
12821		-	calendar year and is due no later than May 31, 2023. For
12822		-	applicants issued a certificate of exemption under Section 105
12823		-	of this Act, the report shall be the same as required for a
12824		-	High Impact Business under subsection (a-5) of Section 8.1 of
12825		-	the Illinois Enterprise Zone Act. Each person required to file
12826		-	a return under the Gas Revenue Tax Act, the Electricity Excise
12827		-	Tax Law, or the Telecommunications Excise Tax Act shall file a
12828		-	report containing information about customers that are issued
12829		-	an exemption certificate under Section 95 of this Act in the
12830		-	same manner and form as they are required to report under
12831		-	subsection (b) of Section 8.1 of the Illinois Enterprise Zone
12832		-	Act.
12833		-	(g) Nothing in this Act shall prohibit an award of credit
12834		-	to an applicant that uses a PEO if all other award criteria are
12835		-	satisfied.
12836		-	(h) With respect to any portion of a REV Illinois Credit
12837		-
12838		-
12839		-	that is based on the incremental income tax attributable to
12840		-	new employees or retained employees, in lieu of the Credit
12841		-	allowed under this Act against the taxes imposed pursuant to
12842		-	subsections (a) and (b) of Section 201 of the Illinois Income
12843		-	Tax Act, a taxpayer that otherwise meets the criteria set
12844		-	forth in this Section, the taxpayer may elect to claim the
12845		-	credit, on or after January 1, 2025, against its obligation to
12846		-	pay over withholding under Section 704A of the Illinois Income
12847		-	Tax Act. The election shall be made in the manner prescribed by
12848		-	the Department of Revenue and once made shall be irrevocable.
12849		-	(Source: P.A. 102-669, eff. 11-16-21; 102-1112, eff. 12-21-22;
12850		-	102-1125, eff. 2-3-23; revised 4-5-23.)
12851		-	(20 ILCS 686/40)
12852		-	Sec. 40. Amount and duration of the credits; limitation to
12853		-	amount of costs of specified items. The Department shall
12854		-	determine the amount and duration of the REV Illinois Credit
12855		-	awarded under this Act, subject to the limitations set forth
12856		-	in this Act. For a project that qualified under paragraph (1),
12857		-	(2), (4), or (4.1), or (5) of subsection (c) of Section 20, the
12858		-	duration of the credit may not exceed 15 taxable years, with an
12859		-	option to renew the agreement for no more than one term not to
12860		-	exceed an additional 15 taxable years. For a project that
12861		-	qualified under paragraph (3) or (3.1) of subsection (c) of
12862		-	Section 20, the duration of the credit may not exceed 10
12863		-	taxable years, with an option to renew the agreement for no
12864		-
12865		-
12866		-	more than one term not to exceed an additional 10 taxable
12867		-	years. The credit may be stated as a percentage of the
12868		-	incremental income tax and training costs attributable to the
12869		-	applicant's project and may include a fixed dollar limitation.
12870		-	Nothing in this Section shall prevent the Department, in
12871		-	consultation with the Department of Revenue, from adopting
12872		-	rules to extend the sunset of any earned, existing, and unused
12873		-	tax credit or credits a taxpayer may be in possession of, as
12874		-	provided for in Section 605-1055 of the Department of Commerce
12875		-	and Economic Opportunity Law of the Civil Administrative Code
12876		-	of Illinois, notwithstanding the carry-forward provisions
12877		-	pursuant to paragraph (4) of Section 211 of the Illinois
12878		-	Income Tax Act.
12879		-	(Source: P.A. 102-669, eff. 11-16-21; 102-1112, eff. 12-21-22;
12880		-	102-1125, eff. 2-3-23; revised 4-5-23.)
12881		-	(20 ILCS 686/45)
12882		-	Sec. 45. Contents of agreements with applicants.
12883		-	(a) The Department shall enter into an agreement with an
12884		-	applicant that is awarded a credit under this Act. The
12885		-	agreement shall include all of the following:
12886		-	(1) A detailed description of the project that is the
12887		-	subject of the agreement, including the location and
12888		-	amount of the investment and jobs created or retained.
12889		-	(2) The duration of the credit, the first taxable year
12890		-	for which the credit may be awarded, and the first taxable
12891		-
12892		-
12893		-	year in which the credit may be used by the taxpayer.
12894		-	(3) The credit amount that will be allowed for each
12895		-	taxable year.
12896		-	(4) For a project qualified under paragraphs (1), (2),
12897		-	or (4), or (5) of subsection (c) of Section 20, a
12898		-	requirement that the taxpayer shall maintain operations at
12899		-	the project location a minimum number of years not to
12900		-	exceed 15. For a project qualified under paragraph (3) of
12901		-	subsection (c) of Section 20, a requirement that the
12902		-	taxpayer shall maintain operations at the project location
12903		-	a minimum number of years not to exceed 10.
12904		-	(5) A specific method for determining the number of
12905		-	new employees and if applicable, retained employees,
12906		-	employed during a taxable year.
12907		-	(6) A requirement that the taxpayer shall annually
12908		-	report to the Department the number of new employees, the
12909		-	incremental income tax withheld in connection with the new
12910		-	employees, and any other information the Department deems
12911		-	necessary and appropriate to perform its duties under this
12912		-	Act.
12913		-	(7) A requirement that the Director is authorized to
12914		-	verify with the appropriate State agencies the amounts
12915		-	reported under paragraph (6), and after doing so shall
12916		-	issue a certificate to the taxpayer stating that the
12917		-	amounts have been verified.
12918		-	(8) A requirement that the taxpayer shall provide
12919		-
12920		-
12921		-	written notification to the Director not more than 30 days
12922		-	after the taxpayer makes or receives a proposal that would
12923		-	transfer the taxpayer's State tax liability obligations to
12924		-	a successor taxpayer.
12925		-	(9) A detailed description of the number of new
12926		-	employees to be hired, and the occupation and payroll of
12927		-	full-time jobs to be created or retained because of the
12928		-	project.
12929		-	(10) The minimum investment the taxpayer will make in
12930		-	capital improvements, the time period for placing the
12931		-	property in service, and the designated location in
12932		-	Illinois for the investment.
12933		-	(11) A requirement that the taxpayer shall provide
12934		-	written notification to the Director and the Director's
12935		-	designee not more than 30 days after the taxpayer
12936		-	determines that the minimum job creation or retention,
12937		-	employment payroll, or investment no longer is or will be
12938		-	achieved or maintained as set forth in the terms and
12939		-	conditions of the agreement. Additionally, the
12940		-	notification should outline to the Department the number
12941		-	of layoffs, date of the layoffs, and detail taxpayer's
12942		-	efforts to provide career and training counseling for the
12943		-	impacted workers with industry-related certifications and
12944		-	trainings.
12945		-	(12) If applicable, a A provision that, if the total
12946		-	number of new employees falls below a specified level, the
12947		-
12948		-
12949		-	allowance of credit shall be suspended until the number of
12950		-	new employees equals or exceeds the agreement amount.
12951		-	(13) If applicable, a provision that specifies the
12952		-	statewide baseline at the time of application for retained
12953		-	employees. The Additionally, the agreement must have a
12954		-	provision addressing if the total number of retained
12955		-	employees falls below the lesser of the statewide baseline
12956		-	or the retention requirements specified in the agreement,
12957		-	the allowance of the credit shall be suspended until the
12958		-	number of retained employees equals or exceeds the
12959		-	agreement amount.
12960		-	(14) A detailed description of the items for which the
12961		-	costs incurred by the Taxpayer will be included in the
12962		-	limitation on the Credit provided in Section 40.
12963		-	(15) If the agreement is entered into before the
12964		-	effective date of the changes made to this Section by this
12965		-	amendatory Act of the 103rd General Assembly, a A
12966		-	provision stating that if the taxpayer fails to meet
12967		-	either the investment or job creation and retention
12968		-	requirements specified in the agreement during the entire
12969		-	5-year period beginning on the first day of the first
12970		-	taxable year in which the agreement is executed and ending
12971		-	on the last day of the fifth taxable year after the
12972		-	agreement is executed, then the agreement is automatically
12973		-	terminated on the last day of the fifth taxable year after
12974		-	the agreement is executed, and the taxpayer is not
12975		-
12976		-
12977		-	entitled to the award of any credits for any of that 5-year
12978		-	period. If the agreement is entered into on or after the
12979		-	effective date of the changes made to this Section by this
12980		-	amendatory Act of the 103rd General Assembly, a provision
12981		-	stating that if the taxpayer fails to meet either the
12982		-	investment or job creation and retention requirements
12983		-	specified in the agreement during the entire 10-year
12984		-	period beginning on the effective date of the agreement
12985		-	and ending 10 years after the effective date of the
12986		-	agreement, then the agreement is automatically terminated,
12987		-	and the taxpayer is not entitled to the award of any
12988		-	credits for any of that 10-year period.
12989		-	(16) A provision stating that if the taxpayer ceases
12990		-	principal operations with the intent to permanently shut
12991		-	down the project in the State during the term of the
12992		-	Agreement, then the entire credit amount awarded to the
12993		-	taxpayer prior to the date the taxpayer ceases principal
12994		-	operations shall be returned to the Department and shall
12995		-	be reallocated to the local workforce investment area in
12996		-	which the project was located.
12997		-	(17) A provision stating that the Taxpayer must
12998		-	provide the reports outlined in Sections 50 and 55 on or
12999		-	before April 15 each year.
13000		-	(18) A provision requiring the taxpayer to report
13001		-	annually its contractual obligations or otherwise with a
13002		-	recycling facility for its operations.
13003		-
13004		-
13005		-	(19) Any other performance conditions or contract
13006		-	provisions the Department determines are necessary or
13007		-	appropriate.
13008		-	(20) Each taxpayer under paragraph (1) of subsection
13009		-	(c) of Section 20 above shall maintain labor neutrality
13010		-	toward any union organizing campaign for any employees of
13011		-	the taxpayer assigned to work on the premises of the REV
13012		-	Illinois Project Site. This paragraph shall not apply to
13013		-	an electric vehicle manufacturer, electric vehicle
13014		-	component part manufacturer, electric vehicle power supply
13015		-	manufacturer, or renewable energy manufacturer, or any
13016		-	joint venture including an electric vehicle manufacturer,
13017		-	electric vehicle component part manufacturer, electric
13018		-	vehicle power supply manufacturer, or renewable energy
13019		-	manufacturer, who is subject to collective bargaining
13020		-	agreement entered into prior to the taxpayer filing an
13021		-	application pursuant to this Act.
13022		-	(b) The Department shall post on its website the terms of
13023		-	each agreement entered into under this Act. Such information
13024		-	shall be posted within 10 days after entering into the
13025		-	agreement and must include the following:
13026		-	(1) the name of the taxpayer;
13027		-	(2) the location of the project;
13028		-	(3) the estimated value of the credit;
13029		-	(4) the number of new employee jobs and, if
13030		-	applicable, number of retained employee jobs at the
13031		-
13032		-
13033		-	project; and
13034		-	(5) whether or not the project is in an underserved
13035		-	area or energy transition area.
13036		-	(Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23;
13037		-	revised 4-5-23.)
13038		-	ARTICLE 80. CIGARETTE TAX
13039		-	Section 80-5. The Cigarette Tax Act is amended by changing
13040		-	Section 2 as follows:
13041		-	(35 ILCS 130/2) (from Ch. 120, par. 453.2)
13042		-	Sec. 2. Tax imposed; rate; collection, payment, and
13043		-	distribution; discount.
13044		-	(a) Beginning on July 1, 2019, in place of the aggregate
13045		-	tax rate of 99 mills previously imposed by this Act, a tax is
13046		-	imposed upon any person engaged in business as a retailer of
13047		-	cigarettes at the rate of 149 mills per cigarette sold or
13048		-	otherwise disposed of in the course of such business in this
13049		-	State.
13050		-	(b) The payment of such taxes shall be evidenced by a stamp
13051		-	affixed to each original package of cigarettes, or an
13052		-	authorized substitute for such stamp imprinted on each
13053		-	original package of such cigarettes underneath the sealed
13054		-	transparent outside wrapper of such original package, as
13055		-	hereinafter provided. However, such taxes are not imposed upon
13056		-
13057		-
13058		-	any activity in such business in interstate commerce or
13059		-	otherwise, which activity may not under the Constitution and
13060		-	statutes of the United States be made the subject of taxation
13061		-	by this State.
13062		-	Out of the 149 mills per cigarette tax imposed by
13063		-	subsection (a), until July 1, 2023, the revenues received from
13064		-	4 mills shall be paid into the Common School Fund each month,
13065		-	not to exceed $9,000,000 per month. Out of the 149 mills per
13066		-	cigarette tax imposed by subsection (a), until July 1, 2023,
13067		-	all of the revenues received from 7 mills shall be paid into
13068		-	the Common School Fund each month. Out of the 149 mills per
13069		-	cigarette tax imposed by subsection (a), until July 1, 2023,
13070		-	50 mills per cigarette each month shall be paid into the
13071		-	Healthcare Provider Relief Fund.
13072		-	Beginning on July 1, 2006 and until July 1, 2023, all of
13073		-	the moneys received by the Department of Revenue pursuant to
13074		-	this Act and the Cigarette Use Tax Act, other than the moneys
13075		-	that are dedicated to the Common School Fund and, beginning on
13076		-	the effective date of this amendatory Act of the 97th General
13077		-	Assembly, other than the moneys from the additional taxes
13078		-	imposed by this amendatory Act of the 97th General Assembly
13079		-	that must be paid each month into the Healthcare Provider
13080		-	Relief Fund, and other than the moneys from the additional
13081		-	taxes imposed by this amendatory Act of the 101st General
13082		-	Assembly that must be paid each month under subsection (c),
13083		-	shall be distributed each month as follows: first, there shall
13084		-
13085		-
13086		-	be paid into the General Revenue Fund an amount that, when
13087		-	added to the amount paid into the Common School Fund for that
13088		-	month, equals $29,200,000; then, from the moneys remaining, if
13089		-	any amounts required to be paid into the General Revenue Fund
13090		-	in previous months remain unpaid, those amounts shall be paid
13091		-	into the General Revenue Fund; then from the moneys remaining,
13092		-	$5,000,000 per month shall be paid into the School
13093		-	Infrastructure Fund; then, if any amounts required to be paid
13094		-	into the School Infrastructure Fund in previous months remain
13095		-	unpaid, those amounts shall be paid into the School
13096		-	Infrastructure Fund; then the moneys remaining, if any, shall
13097		-	be paid into the Long-Term Care Provider Fund. Any amounts
13098		-	required to be paid into the General Revenue Fund, the School
13099		-	Infrastructure Fund, the Long-Term Care Provider Fund, the
13100		-	Common School Fund, the Capital Projects Fund, or the
13101		-	Healthcare Provider Relief Fund under this subsection that
13102		-	remain unpaid as of July 1, 2023 shall be deemed satisfied on
13103		-	that date, eliminating any deficiency accrued through that
13104		-	date.
13105		-	(c) Beginning on July 1, 2019 and until July 1, 2023, all
13106		-	of the moneys from the additional taxes imposed by Public Act
13107		-	101-31, except for moneys received from the tax on electronic
13108		-	cigarettes, received by the Department of Revenue pursuant to
13109		-	this Act, the Cigarette Use Tax Act, and the Tobacco Products
13110		-	Tax Act of 1995 shall be distributed each month into the
13111		-	Capital Projects Fund.
13112		-
13113		-
13114		-	(c-5) Beginning on July 1, 2023, all of the moneys
13115		-	received by the Department of Revenue pursuant to (i) this
13116		-	Act, (ii) the Cigarette Use Tax Act, and (iii) the tax imposed
13117		-	on little cigars under Section 10-10 of the Tobacco Products
13118		-	Tax Act of 1995 shall be paid each month as follows:
13119		-	(1) 7% into the Common School Fund;
13120		-	(2) 34% into the Healthcare Provider Relief Fund;
13121		-	(3) 34% into the Capital Projects Fund; and
13122		-	(4) 25% into the General Revenue Fund.
13123		-	(d) Until July 1, 2023, except Except for moneys received
13124		-	from the additional taxes imposed by Public Act 101-31, moneys
13125		-	collected from the tax imposed on little cigars under Section
13126		-	10-10 of the Tobacco Products Tax Act of 1995 shall be included
13127		-	with the moneys collected under the Cigarette Tax Act and the
13128		-	Cigarette Use Tax Act when making distributions to the Common
13129		-	School Fund, the Healthcare Provider Relief Fund, the General
13130		-	Revenue Fund, the School Infrastructure Fund, and the
13131		-	Long-Term Care Provider Fund under this Section. Any amounts,
13132		-	including moneys collected from the tax imposed on little
13133		-	cigars under Section 10-10 of the Tobacco Products Tax Act of
13134		-	1995, that are required to be paid into the General Revenue
13135		-	Fund, the School Infrastructure Fund, the Long-Term Care
13136		-	Provider Fund, the Common School Fund, the Capital Projects
13137		-	Fund, or the Healthcare Provider Relief Fund under subsection
13138		-	(b) that remain unpaid as of July 1, 2023 shall be deemed
13139		-	satisfied on that date, eliminating any deficiency accrued
13140		-
13141		-
13142		-	through that date. Beginning on July 1, 2023, moneys collected
13143		-	from the tax imposed on little cigars under Section 10-10 of
13144		-	the Tobacco Products Tax Act of 1995 shall be included with the
13145		-	moneys collected under the Cigarette Tax Act and the Cigarette
13146		-	Use Tax Act when making distributions under subsections (c-5).
13147		-	(e) If the tax imposed herein terminates or has
13148		-	terminated, distributors who have bought stamps while such tax
13149		-	was in effect and who therefore paid such tax, but who can
13150		-	show, to the Department's satisfaction, that they sold the
13151		-	cigarettes to which they affixed such stamps after such tax
13152		-	had terminated and did not recover the tax or its equivalent
13153		-	from purchasers, shall be allowed by the Department to take
13154		-	credit for such absorbed tax against subsequent tax stamp
13155		-	purchases from the Department by such distributor.
13156		-	(f) The impact of the tax levied by this Act is imposed
13157		-	upon the retailer and shall be prepaid or pre-collected by the
13158		-	distributor for the purpose of convenience and facility only,
13159		-	and the amount of the tax shall be added to the price of the
13160		-	cigarettes sold by such distributor. Collection of the tax
13161		-	shall be evidenced by a stamp or stamps affixed to each
13162		-	original package of cigarettes, as hereinafter provided. Any
13163		-	distributor who purchases stamps may credit any excess
13164		-	payments verified by the Department against amounts
13165		-	subsequently due for the purchase of additional stamps, until
13166		-	such time as no excess payment remains.
13167		-	(g) Each distributor shall collect the tax from the
13168		-
13169		-
13170		-	retailer at or before the time of the sale, shall affix the
13171		-	stamps as hereinafter required, and shall remit the tax
13172		-	collected from retailers to the Department, as hereinafter
13173		-	provided. Any distributor who fails to properly collect and
13174		-	pay the tax imposed by this Act shall be liable for the tax.
13175		-	(h) Any distributor having cigarettes in his or her
13176		-	possession on July 1, 2019 to which tax stamps have been
13177		-	affixed, and any distributor having stamps in his or her
13178		-	possession on July 1, 2019 that have not been affixed to
13179		-	packages of cigarettes before July 1, 2019, is required to pay
13180		-	the additional tax that begins on July 1, 2019 imposed by this
13181		-	amendatory Act of the 101st General Assembly to the extent
13182		-	that the volume of affixed and unaffixed stamps in the
13183		-	distributor's possession on July 1, 2019 exceeds the average
13184		-	monthly volume of cigarette stamps purchased by the
13185		-	distributor in calendar year 2018. This payment, less the
13186		-	discount provided in subsection (l), is due when the
13187		-	distributor first makes a purchase of cigarette stamps on or
13188		-	after July 1, 2019 or on the first due date of a return under
13189		-	this Act occurring on or after July 1, 2019, whichever occurs
13190		-	first. Those distributors may elect to pay the additional tax
13191		-	on packages of cigarettes to which stamps have been affixed
13192		-	and on any stamps in the distributor's possession that have
13193		-	not been affixed to packages of cigarettes in their possession
13194		-	on July 1, 2019 over a period not to exceed 12 months from the
13195		-	due date of the additional tax by notifying the Department in
13196		-
13197		-
13198		-	writing. The first payment for distributors making such
13199		-	election is due when the distributor first makes a purchase of
13200		-	cigarette tax stamps on or after July 1, 2019 or on the first
13201		-	due date of a return under this Act occurring on or after July
13202		-	1, 2019, whichever occurs first. Distributors making such an
13203		-	election are not entitled to take the discount provided in
13204		-	subsection (l) on such payments.
13205		-	(i) Any retailer having cigarettes in its possession on
13206		-	July 1, 2019 to which tax stamps have been affixed is not
13207		-	required to pay the additional tax that begins on July 1, 2019
13208		-	imposed by this amendatory Act of the 101st General Assembly
13209		-	on those stamped cigarettes.
13210		-	(j) Distributors making sales of cigarettes to secondary
13211		-	distributors shall add the amount of the tax to the price of
13212		-	the cigarettes sold by the distributors. Secondary
13213		-	distributors making sales of cigarettes to retailers shall
13214		-	include the amount of the tax in the price of the cigarettes
13215		-	sold to retailers. The amount of tax shall not be less than the
13216		-	amount of taxes imposed by the State and all local
13217		-	jurisdictions. The amount of local taxes shall be calculated
13218		-	based on the location of the retailer's place of business
13219		-	shown on the retailer's certificate of registration or
13220		-	sub-registration issued to the retailer pursuant to Section 2a
13221		-	of the Retailers' Occupation Tax Act. The original packages of
13222		-	cigarettes sold to the retailer shall bear all the required
13223		-	stamps, or other indicia, for the taxes included in the price
13224		-
13225		-
13226		-	of cigarettes.
13227		-	(k) The amount of the Cigarette Tax imposed by this Act
13228		-	shall be separately stated, apart from the price of the goods,
13229		-	by distributors, manufacturer representatives, secondary
13230		-	distributors, and retailers, in all bills and sales invoices.
13231		-	(l) The distributor shall be required to collect the tax
13232		-	provided under paragraph (a) hereof, and, to cover the costs
13233		-	of such collection, shall be allowed a discount during any
13234		-	year commencing July 1st and ending the following June 30th in
13235		-	accordance with the schedule set out hereinbelow, which
13236		-	discount shall be allowed at the time of purchase of the stamps
13237		-	when purchase is required by this Act, or at the time when the
13238		-	tax is remitted to the Department without the purchase of
13239		-	stamps from the Department when that method of paying the tax
13240		-	is required or authorized by this Act.
13241		-	On and after December 1, 1985, a discount equal to 1.75% of
13242		-	the amount of the tax payable under this Act up to and
13243		-	including the first $3,000,000 paid hereunder by such
13244		-	distributor to the Department during any such year and 1.5% of
13245		-	the amount of any additional tax paid hereunder by such
13246		-	distributor to the Department during any such year shall
13247		-	apply.
13248		-	Two or more distributors that use a common means of
13249		-	affixing revenue tax stamps or that are owned or controlled by
13250		-	the same interests shall be treated as a single distributor
13251		-	for the purpose of computing the discount.
13252		-
13253		-
13254		-	(m) The taxes herein imposed are in addition to all other
13255		-	occupation or privilege taxes imposed by the State of
13256		-	Illinois, or by any political subdivision thereof, or by any
13257		-	municipal corporation.
13258		-	(Source: P.A. 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19;
13259		-	101-604, eff. 12-13-19.)
13260		-	ARTICLE 85. USE AND OCCUPATION TAXES
13261		-	Section 85-5. The Use Tax Act is amended by changing
13262		-	Section 12 as follows:
13263		-	(35 ILCS 105/12) (from Ch. 120, par. 439.12)
13264		-	Sec. 12. Applicability of Retailers' Occupation Tax Act
13265		-	and Uniform Penalty and Interest Act. All of the provisions of
13266		-	Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12,
13267		-	2-54, 2a, 2b, 2c, 3, 4 (except that the time limitation
13268		-	provisions shall run from the date when the tax is due rather
13269		-	than from the date when gross receipts are received), 5
13270		-	(except that the time limitation provisions on the issuance of
13271		-	notices of tax liability shall run from the date when the tax
13272		-	is due rather than from the date when gross receipts are
13273		-	received and except that in the case of a failure to file a
13274		-	return required by this Act, no notice of tax liability shall
13275		-	be issued on and after each July 1 and January 1 covering tax
13276		-	due with that return during any month or period more than 6
13277		-
13278		-
13279		-	years before that July 1 or January 1, respectively), 5a, 5b,
13280		-	5c, 5d, 5e, 5f, 5g, 5h, 5j, 5k, 5l, 5m, 5n, 7, 8, 9, 10, 11 and
13281		-	12 of the Retailers' Occupation Tax Act and Section 3-7 of the
13282		-	Uniform Penalty and Interest Act, which are not inconsistent
13283		-	with this Act, shall apply, as far as practicable, to the
13284		-	subject matter of this Act to the same extent as if such
13285		-	provisions were included herein.
13286		-	(Source: P.A. 102-700, eff. 4-19-22.)
13287		-	Section 85-10. The Service Use Tax Act is amended by
13288		-	changing Section 12 as follows:
13289		-	(35 ILCS 110/12) (from Ch. 120, par. 439.42)
13290		-	Sec. 12. Applicability of Retailers' Occupation Tax Act
13291		-	and Uniform Penalty and Interest Act. All of the provisions of
13292		-	Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12,
13293		-	2-54, 2a, 2b, 2c, 3 (except as to the disposition by the
13294		-	Department of the money collected under this Act), 4 (except
13295		-	that the time limitation provisions shall run from the date
13296		-	when gross receipts are received), 5 (except that the time
13297		-	limitation provisions on the issuance of notices of tax
13298		-	liability shall run from the date when the tax is due rather
13299		-	than from the date when gross receipts are received and except
13300		-	that in the case of a failure to file a return required by this
13301		-	Act, no notice of tax liability shall be issued on and after
13302		-	July 1 and January 1 covering tax due with that return during
13303		-
13304		-
13305		-	any month or period more than 6 years before that July 1 or
13306		-	January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k,
13307		-	5l, 5m, 5n, 6d, 7, 8, 9, 10, 11 and 12 of the Retailers'
13308		-	Occupation Tax Act which are not inconsistent with this Act,
13309		-	and Section 3-7 of the Uniform Penalty and Interest Act, shall
13310		-	apply, as far as practicable, to the subject matter of this Act
13311		-	to the same extent as if such provisions were included herein.
13312		-	(Source: P.A. 102-700, eff. 4-19-22.)
13313		-	Section 85-15. The Service Occupation Tax Act is amended
13314		-	by changing Section 12 as follows:
13315		-	(35 ILCS 115/12) (from Ch. 120, par. 439.112)
13316		-	Sec. 12. All of the provisions of Sections 1d, 1e, 1f, 1i,
13317		-	1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12, 2-54, 2a, 2b, 2c, 3
13318		-	(except as to the disposition by the Department of the tax
13319		-	collected under this Act), 4 (except that the time limitation
13320		-	provisions shall run from the date when the tax is due rather
13321		-	than from the date when gross receipts are received), 5
13322		-	(except that the time limitation provisions on the issuance of
13323		-	notices of tax liability shall run from the date when the tax
13324		-	is due rather than from the date when gross receipts are
13325		-	received), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k, 5l, 5m, 5n, 6d,
13326		-	7, 8, 9, 10, 11 and 12 of the "Retailers' Occupation Tax Act"
13327		-	which are not inconsistent with this Act, and Section 3-7 of
13328		-	the Uniform Penalty and Interest Act shall apply, as far as
13329		-
13330		-
13331		-	practicable, to the subject matter of this Act to the same
13332		-	extent as if such provisions were included herein.
13333		-	(Source: P.A. 102-700, eff. 4-19-22.)
13334		-	ARTICLE 90. MUNICIPAL USE AND OCCUPATION TAXES
13335		-	Section 90-5. The Illinois Municipal Code is amended by
13336		-	changing Sections 8-11-1.4 and 8-11-1.5 as follows:
13337		-	(65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
13338		-	Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
13339		-	Tax Act. The corporate authorities of a non-home rule
13340		-	municipality may impose a tax upon all persons engaged, in
13341		-	such municipality, in the business of making sales of service
13342		-	for expenditure on public infrastructure or for property tax
13343		-	relief or both as defined in Section 8-11-1.2 if approved by
13344		-	referendum as provided in Section 8-11-1.1, of the selling
13345		-	price of all tangible personal property transferred by such
13346		-	servicemen either in the form of tangible personal property or
13347		-	in the form of real estate as an incident to a sale of service.
13348		-	If the tax is approved by referendum on or after July 14, 2010
13349		-	(the effective date of Public Act 96-1057), the corporate
13350		-	authorities of a non-home rule municipality may, until
13351		-	December 31, 2030 December 31, 2020, use the proceeds of the
13352		-	tax for expenditure on municipal operations, in addition to or
13353		-	in lieu of any expenditure on public infrastructure or for
13354		-
13355		-
13356		-	property tax relief. The tax imposed may not be more than 1%
13357		-	and may be imposed only in 1/4% increments. The tax may not be
13358		-	imposed on tangible personal property taxed at the 1% rate
13359		-	under the Service Occupation Tax Act (or at the 0% rate imposed
13360		-	under this amendatory Act of the 102nd General Assembly).
13361		-	Beginning December 1, 2019, this tax is not imposed on sales of
13362		-	aviation fuel unless the tax revenue is expended for
13363		-	airport-related purposes. If a municipality does not have an
13364		-	airport-related purpose to which it dedicates aviation fuel
13365		-	tax revenue, then aviation fuel is excluded from the tax. Each
13366		-	municipality must comply with the certification requirements
13367		-	for airport-related purposes under Section 2-22 of the
13368		-	Retailers' Occupation Tax Act. For purposes of this Section,
13369		-	"airport-related purposes" has the meaning ascribed in Section
13370		-	6z-20.2 of the State Finance Act. This exclusion for aviation
13371		-	fuel only applies for so long as the revenue use requirements
13372		-	of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
13373		-	municipality. The tax imposed by a municipality pursuant to
13374		-	this Section and all civil penalties that may be assessed as an
13375		-	incident thereof shall be collected and enforced by the State
13376		-	Department of Revenue. The certificate of registration which
13377		-	is issued by the Department to a retailer under the Retailers'
13378		-	Occupation Tax Act or under the Service Occupation Tax Act
13379		-	shall permit such registrant to engage in a business which is
13380		-	taxable under any ordinance or resolution enacted pursuant to
13381		-	this Section without registering separately with the
13382		-
13383		-
13384		-	Department under such ordinance or resolution or under this
13385		-	Section. The Department shall have full power to administer
13386		-	and enforce this Section; to collect all taxes and penalties
13387		-	due hereunder; to dispose of taxes and penalties so collected
13388		-	in the manner hereinafter provided, and to determine all
13389		-	rights to credit memoranda arising on account of the erroneous
13390		-	payment of tax or penalty hereunder. In the administration of,
13391		-	and compliance with, this Section the Department and persons
13392		-	who are subject to this Section shall have the same rights,
13393		-	remedies, privileges, immunities, powers and duties, and be
13394		-	subject to the same conditions, restrictions, limitations,
13395		-	penalties and definitions of terms, and employ the same modes
13396		-	of procedure, as are prescribed in Sections 1a-1, 2, 2a, 3
13397		-	through 3-50 (in respect to all provisions therein other than
13398		-	the State rate of tax), 4 (except that the reference to the
13399		-	State shall be to the taxing municipality), 5, 7, 8 (except
13400		-	that the jurisdiction to which the tax shall be a debt to the
13401		-	extent indicated in that Section 8 shall be the taxing
13402		-	municipality), 9 (except as to the disposition of taxes and
13403		-	penalties collected, and except that the returned merchandise
13404		-	credit for this municipal tax may not be taken against any
13405		-	State tax, and except that the retailer's discount is not
13406		-	allowed for taxes paid on aviation fuel that are subject to the
13407		-	revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
13408		-	47133), 10, 11, 12 (except the reference therein to Section 2b
13409		-	of the Retailers' Occupation Tax Act), 13 (except that any
13410		-
13411		-
13412		-	reference to the State shall mean the taxing municipality),
13413		-	the first paragraph of Section 15, 16, 17, 18, 19 and 20 of the
13414		-	Service Occupation Tax Act and Section 3-7 of the Uniform
13415		-	Penalty and Interest Act, as fully as if those provisions were
13416		-	set forth herein.
13417		-	No municipality may impose a tax under this Section unless
13418		-	the municipality also imposes a tax at the same rate under
13419		-	Section 8-11-1.3 of this Code.
13420		-	Persons subject to any tax imposed pursuant to the
13421		-	authority granted in this Section may reimburse themselves for
13422		-	their serviceman's tax liability hereunder by separately
13423		-	stating such tax as an additional charge, which charge may be
13424		-	stated in combination, in a single amount, with State tax
13425		-	which servicemen are authorized to collect under the Service
13426		-	Use Tax Act, pursuant to such bracket schedules as the
13427		-	Department may prescribe.
13428		-	Whenever the Department determines that a refund should be
13429		-	made under this Section to a claimant instead of issuing
13430		-	credit memorandum, the Department shall notify the State
13431		-	Comptroller, who shall cause the order to be drawn for the
13432		-	amount specified, and to the person named, in such
13433		-	notification from the Department. Such refund shall be paid by
13434		-	the State Treasurer out of the municipal retailers' occupation
13435		-	tax fund or the Local Government Aviation Trust Fund, as
13436		-	appropriate.
13437		-	Except as otherwise provided in this paragraph, the
13438		-
13439		-
13440		-	Department shall forthwith pay over to the State Treasurer, ex
13441		-	officio, as trustee, all taxes and penalties collected
13442		-	hereunder for deposit into the municipal retailers' occupation
13443		-	tax fund. Taxes and penalties collected on aviation fuel sold
13444		-	on or after December 1, 2019, shall be immediately paid over by
13445		-	the Department to the State Treasurer, ex officio, as trustee,
13446		-	for deposit into the Local Government Aviation Trust Fund. The
13447		-	Department shall only pay moneys into the Local Government
13448		-	Aviation Trust Fund under this Section for so long as the
13449		-	revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
13450		-	47133 are binding on the municipality.
13451		-	As soon as possible after the first day of each month,
13452		-	beginning January 1, 2011, upon certification of the
13453		-	Department of Revenue, the Comptroller shall order
13454		-	transferred, and the Treasurer shall transfer, to the STAR
13455		-	Bonds Revenue Fund the local sales tax increment, as defined
13456		-	in the Innovation Development and Economy Act, collected under
13457		-	this Section during the second preceding calendar month for
13458		-	sales within a STAR bond district.
13459		-	After the monthly transfer to the STAR Bonds Revenue Fund,
13460		-	on or before the 25th day of each calendar month, the
13461		-	Department shall prepare and certify to the Comptroller the
13462		-	disbursement of stated sums of money to named municipalities,
13463		-	the municipalities to be those from which suppliers and
13464		-	servicemen have paid taxes or penalties hereunder to the
13465		-	Department during the second preceding calendar month. The
13466		-
13467		-
13468		-	amount to be paid to each municipality shall be the amount (not
13469		-	including credit memoranda and not including taxes and
13470		-	penalties collected on aviation fuel sold on or after December
13471		-	1, 2019) collected hereunder during the second preceding
13472		-	calendar month by the Department, and not including an amount
13473		-	equal to the amount of refunds made during the second
13474		-	preceding calendar month by the Department on behalf of such
13475		-	municipality, and not including any amounts that are
13476		-	transferred to the STAR Bonds Revenue Fund, less 1.5% of the
13477		-	remainder, which the Department shall transfer into the Tax
13478		-	Compliance and Administration Fund. The Department, at the
13479		-	time of each monthly disbursement to the municipalities, shall
13480		-	prepare and certify to the State Comptroller the amount to be
13481		-	transferred into the Tax Compliance and Administration Fund
13482		-	under this Section. Within 10 days after receipt, by the
13483		-	Comptroller, of the disbursement certification to the
13484		-	municipalities, the General Revenue Fund, and the Tax
13485		-	Compliance and Administration Fund provided for in this
13486		-	Section to be given to the Comptroller by the Department, the
13487		-	Comptroller shall cause the orders to be drawn for the
13488		-	respective amounts in accordance with the directions contained
13489		-	in such certification.
13490		-	The Department of Revenue shall implement Public Act
13491		-	91-649 so as to collect the tax on and after January 1, 2002.
13492		-	Nothing in this Section shall be construed to authorize a
13493		-	municipality to impose a tax upon the privilege of engaging in
13494		-
13495		-
13496		-	any business which under the constitution of the United States
13497		-	may not be made the subject of taxation by this State.
13498		-	As used in this Section, "municipal" or "municipality"
13499		-	means or refers to a city, village or incorporated town,
13500		-	including an incorporated town which has superseded a civil
13501		-	township.
13502		-	This Section shall be known and may be cited as the
13503		-	"Non-Home Rule Municipal Service Occupation Tax Act".
13504		-	(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
13505		-	101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
13506		-	(65 ILCS 5/8-11-1.5) (from Ch. 24, par. 8-11-1.5)
13507		-	Sec. 8-11-1.5. Non-Home Rule Municipal Use Tax Act. The
13508		-	corporate authorities of a non-home rule municipality may
13509		-	impose a tax upon the privilege of using, in such
13510		-	municipality, any item of tangible personal property which is
13511		-	purchased at retail from a retailer, and which is titled or
13512		-	registered with an agency of this State's government, based on
13513		-	the selling price of such tangible personal property, as
13514		-	"selling price" is defined in the Use Tax Act, for expenditure
13515		-	on public infrastructure or for property tax relief or both as
13516		-	defined in Section 8-11-1.2, if approved by referendum as
13517		-	provided in Section 8-11-1.1. If the tax is approved by
13518		-	referendum on or after the effective date of this amendatory
13519		-	Act of the 96th General Assembly, the corporate authorities of
13520		-	a non-home rule municipality may, until December 31, 2030
13521		-
13522		-
13523		-	December 31, 2020, use the proceeds of the tax for expenditure
13524		-	on municipal operations, in addition to or in lieu of any
13525		-	expenditure on public infrastructure or for property tax
13526		-	relief. The tax imposed may not be more than 1% and may be
13527		-	imposed only in 1/4% increments. Such tax shall be collected
13528		-	from persons whose Illinois address for title or registration
13529		-	purposes is given as being in such municipality. Such tax
13530		-	shall be collected by the municipality imposing such tax. A
13531		-	non-home rule municipality may not impose and collect the tax
13532		-	prior to January 1, 2002.
13533		-	This Section shall be known and may be cited as the
13534		-	"Non-Home Rule Municipal Use Tax Act".
13535		-	(Source: P.A. 96-1057, eff. 7-14-10; 97-837, eff. 7-20-12.)
13536		-	ARTICLE 95. VOLUNTEER EMERGENCY WORKERS
13537		-	Section 95-5. The Illinois Administrative Procedure Act is
13538		-	amended by adding Section 5-45.36 as follows:
13539		-	(5 ILCS 100/5-45.36 new)
13540		-	Sec. 5-45.36. Emergency rulemaking. To provide for the
13541		-	expeditious and timely implementation of Section 234 of the
13542		-	Illinois Income Tax Act, emergency rules implementing that
13543		-	Section may be adopted in accordance with Section 5-45 by the
13544		-	Department of Revenue. The adoption of emergency rules
13545		-	authorized by Section 5-45 and this Section is deemed to be
13546		-
13547		-
13548		-	necessary for the public interest, safety, and welfare.
13549		-	This Section is repealed one year after the effective date
13550		-	of this amendatory Act of the 103rd General Assembly.
13551		-	Section 95-10. The Illinois Income Tax Act is amended by
13552		-	adding Section 234 as follows:
13553		-	(35 ILCS 5/234 new)
13554		-	Sec. 234. Volunteer emergency workers.
13555		-	(a) For taxable years beginning on or after January 1,
13556		-	2023 and beginning prior to January 1, 2028, each individual
13557		-	who (i) serves as a volunteer emergency worker for at least 9
13558		-	months during the taxable year and (ii) does not receive
13559		-	compensation for his or her services as a volunteer emergency
13560		-	worker of more than $5,000 for the taxable year may apply to
13561		-	the Department for a credit against the taxes imposed by
13562		-	subsections (a) and (b) of Section 201. The amount of the
13563		-	credit shall be $500 per eligible individual. The aggregate
13564		-	amount of all tax credits awarded by the Department under this
13565		-	Section in any calendar year may not exceed $5,000,000.
13566		-	Credits shall be awarded on a first-come first-served basis.
13567		-	(b) A credit under this Section may not reduce a
13568		-	taxpayer's liability to less than zero.
13569		-	(c) By January 24 of each year, the Office of the State
13570		-	Fire Marshal shall provide the Department of Revenue an
13571		-	electronic file with the names of volunteer emergency workers
13572		-
13573		-
13574		-	who (i) volunteered for at least 9 months during the
13575		-	immediately preceding calendar year, (ii) did not receive
13576		-	compensation for their services as a volunteer emergency
13577		-	worker of more than $5,000 during the immediately preceding
13578		-	calendar year, and (iii) are registered with the Office of the
13579		-	State Fire Marshal as of January 12 of the current year as
13580		-	meeting the requirements of items (i) and (ii) for the
13581		-	immediately preceding calendar year. The chief of the fire
13582		-	department, fire protection district, or fire protection
13583		-	association shall be responsible for notifying the State Fire
13584		-	Marshal of the volunteer emergency workers who met the
13585		-	requirements of items (i) and (ii) during the immediately
13586		-	preceding calendar year by January 12 of the current year.
13587		-	Notification shall be required in the format required by the
13588		-	State Fire Marshal. The chief of the fire department, fire
13589		-	protection district, or fire protection association shall be
13590		-	responsible for the verification and accuracy of their
13591		-	submission to the State Fire Marshal under this subsection.
13592		-	(d) As used in this Section, "volunteer emergency worker"
13593		-	means a person who serves as a member, other than on a
13594		-	full-time career basis, of a fire department, fire protection
13595		-	district, or fire protection association that has a Fire
13596		-	Department Identification Number issued by the Office of the
13597		-	State Fire Marshal and who does not serve as a member on a
13598		-	full-time career basis for another fire department, fire
13599		-	protection district, fire protection association, or
13600		-
13601		-
13602		-	governmental entity.
13603		-	(e) The Department shall adopt rules to implement and
13604		-	administer this Section, including rules concerning
13605		-	applications for the tax credit.
13606		-	ARTICLE 100. USE AND OCCUPATION TAX ASSESSMENTS
13607		-	Section 100-5. The Retailers' Occupation Tax Act is
13608		-	amended by changing Section 4 as follows:
13609		-	(35 ILCS 120/4) (from Ch. 120, par. 443)
13610		-	Sec. 4. As soon as practicable after any return is filed,
13611		-	the Department shall examine such return and shall, if
13612		-	necessary, correct such return according to its best judgment
13613		-	and information. If the correction of a return results in an
13614		-	amount of tax that is understated on the taxpayer's return due
13615		-	to a mathematical error, the Department shall notify the
13616		-	taxpayer that the amount of tax in excess of that shown on the
13617		-	return is due and has been assessed. The term "mathematical
13618		-	error" means arithmetic errors or incorrect computations on
13619		-	the return or supporting schedules. No such notice of
13620		-	additional tax due shall be issued on and after each July 1 and
13621		-	January 1 covering gross receipts received during any month or
13622		-	period of time more than 3 years prior to such July 1 and
13623		-	January 1, respectively. Such notice of additional tax due
13624		-	shall not be considered a notice of tax liability nor shall the
13625		-
13626		-
13627		-	taxpayer have any right of protest. In the event that the
13628		-	return is corrected for any reason other than a mathematical
13629		-	error, any return so corrected by the Department shall be
13630		-	prima facie correct and shall be prima facie evidence of the
13631		-	correctness of the amount of tax due, as shown therein. In
13632		-	correcting transaction by transaction reporting returns
13633		-	provided for in Section 3 of this Act, it shall be permissible
13634		-	for the Department to show a single corrected return figure
13635		-	for any given period of a calendar month instead of having to
13636		-	correct each transaction by transaction return form
13637		-	individually and having to show a corrected return figure for
13638		-	each of such transaction by transaction return forms. In
13639		-	making a correction of transaction by transaction, monthly or
13640		-	quarterly returns covering a period of 6 months or more, it
13641		-	shall be permissible for the Department to show a single
13642		-	corrected return figure for any given 6-month period.
13643		-	Instead of requiring the person filing such return to file
13644		-	an amended return, the Department may simply notify him of the
13645		-	correction or corrections it has made.
13646		-	Proof of such correction by the Department may be made at
13647		-	any hearing before the Department or the Illinois Independent
13648		-	Tax Tribunal or in any legal proceeding by a reproduced copy or
13649		-	computer print-out of the Department's record relating thereto
13650		-	in the name of the Department under the certificate of the
13651		-	Director of Revenue. If reproduced copies of the Department's
13652		-	records are offered as proof of such correction, the Director
13653		-
13654		-
13655		-	must certify that those copies are true and exact copies of
13656		-	records on file with the Department. If computer print-outs of
13657		-	the Department's records are offered as proof of such
13658		-	correction, the Director must certify that those computer
13659		-	print-outs are true and exact representations of records
13660		-	properly entered into standard electronic computing equipment,
13661		-	in the regular course of the Department's business, at or
13662		-	reasonably near the time of the occurrence of the facts
13663		-	recorded, from trustworthy and reliable information. Such
13664		-	certified reproduced copy or certified computer print-out
13665		-	shall without further proof, be admitted into evidence before
13666		-	the Department or in any legal proceeding and shall be prima
13667		-	facie proof of the correctness of the amount of tax due, as
13668		-	shown therein.
13669		-	If the tax computed upon the basis of the gross receipts as
13670		-	fixed by the Department is greater than the amount of tax due
13671		-	under the return or returns as filed, the Department shall (or
13672		-	if the tax or any part thereof that is admitted to be due by a
13673		-	return or returns, whether filed on time or not, is not paid,
13674		-	the Department may) issue the taxpayer a notice of tax
13675		-	liability for the amount of tax claimed by the Department to be
13676		-	due, together with a penalty in an amount determined in
13677		-	accordance with Section 3-3 of the Uniform Penalty and
13678		-	Interest Act. Provided, that if the incorrectness of any
13679		-	return or returns as determined by the Department is due to
13680		-	negligence or fraud, said penalty shall be in an amount
13681		-
13682		-
13683		-	determined in accordance with Section 3-5 or Section 3-6 of
13684		-	the Uniform Penalty and Interest Act, as the case may be. If
13685		-	the notice of tax liability is not based on a correction of the
13686		-	taxpayer's return or returns, but is based on the taxpayer's
13687		-	failure to pay all or a part of the tax admitted by his return
13688		-	or returns (whether filed on time or not) to be due, such
13689		-	notice of tax liability shall be prima facie correct and shall
13690		-	be prima facie evidence of the correctness of the amount of tax
13691		-	due, as shown therein.
13692		-	Proof of such notice of tax liability by the Department
13693		-	may be made at any hearing before the Department or the
13694		-	Illinois Independent Tax Tribunal or in any legal proceeding
13695		-	by a reproduced copy of the Department's record relating
13696		-	thereto in the name of the Department under the certificate of
13697		-	the Director of Revenue. Such reproduced copy shall without
13698		-	further proof, be admitted into evidence before the Department
13699		-	or in any legal proceeding and shall be prima facie proof of
13700		-	the correctness of the amount of tax due, as shown therein.
13701		-	If the person filing any return dies or becomes a person
13702		-	under legal disability at any time before the Department
13703		-	issues its notice of tax liability, such notice shall be
13704		-	issued to the administrator, executor or other legal
13705		-	representative, as such, of such person.
13706		-	Except in case of a fraudulent return, or in the case of an
13707		-	amended return (where a notice of tax liability may be issued
13708		-	on or after each January 1 and July 1 for an amended return
13709		-
13710		-
13711		-	filed not more than 3 years prior to such January 1 or July 1,
13712		-	respectively), no notice of tax liability shall be issued on
13713		-	and after each January 1 and July 1 covering gross receipts
13714		-	received during any month or period of time more than 3 years
13715		-	prior to such January 1 and July 1, respectively. If, before
13716		-	the expiration of the time prescribed in this Section for the
13717		-	issuance of a notice of tax liability, both the Department and
13718		-	the taxpayer have consented in writing to its issuance after
13719		-	such time, such notice may be issued at any time prior to the
13720		-	expiration of the period agreed upon. The period so agreed
13721		-	upon may be extended by subsequent agreements in writing made
13722		-	before the expiration of the period previously agreed upon.
13723		-	The foregoing limitations upon the issuance of a notice of tax
13724		-	liability shall not apply to the issuance of a notice of tax
13725		-	liability with respect to any period of time prior thereto in
13726		-	cases where the Department has, within the period of
13727		-	limitation then provided, notified the person making the
13728		-	return of a notice of tax liability even though such return,
13729		-	with which the tax that was shown by such return to be due was
13730		-	paid when the return was filed, had not been corrected by the
13731		-	Department in the manner required herein prior to the issuance
13732		-	of such notice, but in no case shall the amount of any such
13733		-	notice of tax liability for any period otherwise barred by
13734		-	this Act exceed for such period the amount shown in the notice
13735		-	of tax liability theretofore issued.
13736		-	If, when a tax or penalty under this Act becomes due and
13737		-
13738		-
13739		-	payable, the person alleged to be liable therefor is out of the
13740		-	State, the notice of tax liability may be issued within the
13741		-	times herein limited after his coming into or return to the
13742		-	State; and if, after the tax or penalty under this Act becomes
13743		-	due and payable, the person alleged to be liable therefor
13744		-	departs from and remains out of the State, the time of his or
13745		-	her absence is no part of the time limited for the issuance of
13746		-	the notice of tax liability; but the foregoing provisions
13747		-	concerning absence from the State shall not apply to any case
13748		-	in which, at the time when a tax or penalty becomes due under
13749		-	this Act, the person allegedly liable therefor is not a
13750		-	resident of this State.
13751		-	The time limitation period on the Department's right to
13752		-	issue a notice of tax liability shall not run during any period
13753		-	of time in which the Order of any Court has the effect of
13754		-	enjoining or restraining the Department from issuing the
13755		-	notice of tax liability.
13756		-	If such person or legal representative shall within 60
13757		-	days after such notice of tax liability file a protest to said
13758		-	notice of tax liability with the Department and request a
13759		-	hearing thereon, the Department shall give notice to such
13760		-	person or legal representative of the time and place fixed for
13761		-	such hearing and shall hold a hearing in conformity with the
13762		-	provisions of this Act, and pursuant thereto shall issue to
13763		-	such person or legal representative a final assessment for the
13764		-	amount found to be due as a result of such hearing. On or after
13765		-
13766		-
13767		-	July 1, 2013, protests concerning matters that are subject to
13768		-	the jurisdiction of the Illinois Independent Tax Tribunal
13769		-	shall be filed with the Illinois Independent Tax Tribunal in
13770		-	accordance with the Illinois Independent Tax Tribunal Act of
13771		-	2012, and hearings concerning those matters shall be held
13772		-	before the Tribunal in accordance with that Act. The Tribunal
13773		-	shall give notice to such person of the time and place fixed
13774		-	for such hearing and shall hold a hearing. With respect to
13775		-	protests filed with the Department prior to July 1, 2013 that
13776		-	would otherwise be subject to the jurisdiction of the Illinois
13777		-	Independent Tax Tribunal, the taxpayer may elect to be subject
13778		-	to the provisions of the Illinois Independent Tax Tribunal Act
13779		-	of 2012 at any time on or after July 1, 2013, but not later
13780		-	than 30 days after the date on which the protest was filed. If
13781		-	made, the election shall be irrevocable.
13782		-	If a protest to the notice of tax liability and a request
13783		-	for a hearing thereon is not filed within 60 days after such
13784		-	notice, such notice of tax liability shall become final
13785		-	without the necessity of a final assessment being issued and
13786		-	shall be deemed to be a final assessment.
13787		-	Notwithstanding any other provisions of this Act, any
13788		-	amount paid as tax or in respect of tax paid under this Act,
13789		-	other than amounts paid as quarter-monthly payments, shall be
13790		-	deemed assessed upon the date of receipt of payment.
13791		-	After the issuance of a final assessment, or a notice of
13792		-	tax liability which becomes final without the necessity of
13793		-
13794		-
13795		-	actually issuing a final assessment as hereinbefore provided,
13796		-	the Department, at any time before such assessment is reduced
13797		-	to judgment, may (subject to rules of the Department) grant a
13798		-	rehearing (or grant departmental review and hold an original
13799		-	hearing if no previous hearing in the matter has been held)
13800		-	upon the application of the person aggrieved. Pursuant to such
13801		-	hearing or rehearing, the Department shall issue a revised
13802		-	final assessment to such person or his legal representative
13803		-	for the amount found to be due as a result of such hearing or
13804		-	rehearing.
13805		-	(Source: P.A. 97-1129, eff. 8-28-12.)
13806		-	Section 100-10. The Cigarette Machine Operators'
13807		-	Occupation Tax Act is amended by changing Section 1-45 as
13808		-	follows:
13809		-	(35 ILCS 128/1-45)
13810		-	Sec. 1-45. Examination and correction of returns.
13811		-	(a) As soon as practicable after any return is filed, the
13812		-	Department shall examine that return and shall correct the
13813		-	return according to its best judgment and information, which
13814		-	return so corrected by the Department shall be prima facie
13815		-	correct and shall be prima facie evidence of the correctness
13816		-	of the amount of tax due, as shown on the corrected return.
13817		-	Instead of requiring the cigarette machine operator to file an
13818		-	amended return, the Department may simply notify the cigarette
13819		-
13820		-
13821		-	machine operator of the correction or corrections it has made.
13822		-	Proof of the correction by the Department may be made at any
13823		-	hearing before the Department or in any legal proceeding by a
13824		-	reproduced copy of the Department's record relating thereto in
13825		-	the name of the Department under the certificate of the
13826		-	Director of Revenue. Such reproduced copy shall, without
13827		-	further proof, be admitted into evidence before the Department
13828		-	or in any legal proceeding and shall be prima facie proof of
13829		-	the correctness of the amount of tax due, as shown on the
13830		-	reproduced copy. If the Department finds that any amount of
13831		-	tax is due from the cigarette machine operator, the Department
13832		-	shall issue the cigarette machine operator a notice of tax
13833		-	liability for the amount of tax claimed by the Department to be
13834		-	due, together with a penalty in an amount determined in
13835		-	accordance with Sections 3-3, 3-5 and 3-6 of the Uniform
13836		-	Penalty and Interest Act. If, in administering the provisions
13837		-	of this Act, comparison of a return or returns of a cigarette
13838		-	machine operator with the books, records, and inventories of
13839		-	such cigarette machine operator discloses a deficiency that
13840		-	cannot be allocated by the Department to a particular month or
13841		-	months, the Department shall issue the cigarette machine
13842		-	operator a notice of tax liability for the amount of tax
13843		-	claimed by the Department to be due for a given period, but
13844		-	without any obligation upon the Department to allocate that
13845		-	deficiency to any particular month or months, together with a
13846		-	penalty in an amount determined in accordance with Sections
13847		-
13848		-
13849		-	3-3, 3-5, and 3-6 of the Uniform Penalty and Interest Act,
13850		-	under which circumstances the aforesaid notice of tax
13851		-	liability shall be prima facie correct and shall be prima
13852		-	facie evidence of the correctness of the amount of tax due, as
13853		-	shown therein; and proof of such correctness may be made in
13854		-	accordance with, and the admissibility of a reproduced copy of
13855		-	such notice of tax liability shall be governed by, all the
13856		-	provisions of this Act applicable to corrected returns. If any
13857		-	cigarette machine operator filing any return dies or becomes a
13858		-	person under legal disability at any time before the
13859		-	Department issues its notice of tax liability, such notice
13860		-	shall be issued to the administrator, executor, or other legal
13861		-	representative of the cigarette machine operator.
13862		-	(b) If, within 60 days after such notice of tax liability,
13863		-	the cigarette machine operator or his or her legal
13864		-	representative files a written protest to such notice of tax
13865		-	liability and requests a hearing thereon, the Department shall
13866		-	give notice to such cigarette machine operator or legal
13867		-	representative of the time and place fixed for such hearing,
13868		-	and shall hold a hearing in conformity with the provisions of
13869		-	this Act, and pursuant thereto shall issue a final assessment
13870		-	to such cigarette machine operator or legal representative for
13871		-	the amount found to be due as a result of such hearing. If a
13872		-	written protest to the notice of tax liability and a request
13873		-	for a hearing thereon is not filed within 60 days after such
13874		-	notice of tax liability, such notice of tax liability shall
13875		-
13876		-
13877		-	become final without the necessity of a final assessment being
13878		-	issued and shall be deemed to be a final assessment.
13879		-	(c) In case of failure to pay the tax, or any portion
13880		-	thereof, or any penalty provided for in this Act, when due, the
13881		-	Department may bring suit to recover the amount of such tax, or
13882		-	portion thereof, or penalty; or, if the taxpayer dies or
13883		-	becomes incompetent, by filing claim therefore against his or
13884		-	her estate; provided that no such action with respect to any
13885		-	tax, or portion thereof, or penalty, shall be instituted more
13886		-	than 2 years after the cause of action accrues, except with the
13887		-	consent of the person from whom such tax or penalty is due.
13888		-	After the expiration of the period within which the person
13889		-	assessed may file an action for judicial review under the
13890		-	Administrative Review Law without such an action being filed,
13891		-	a certified copy of the final assessment or revised final
13892		-	assessment of the Department may be filed with the circuit
13893		-	court of the county in which the taxpayer has his or her
13894		-	principal place of business, or of Sangamon County in those
13895		-	cases in which the taxpayer does not have his or her principal
13896		-	place of business in this State. The certified copy of the
13897		-	final assessment or revised final assessment shall be
13898		-	accompanied by a certification which recites facts that are
13899		-	sufficient to show that the Department complied with the
13900		-	jurisdictional requirements of the law in arriving at its
13901		-	final assessment or its revised final assessment and that the
13902		-	taxpayer had his or her opportunity for an administrative
13903		-
13904		-
13905		-	hearing and for judicial review, whether he or she availed
13906		-	himself or herself of either or both of these opportunities or
13907		-	not. If the court is satisfied that the Department complied
13908		-	with the jurisdictional requirements of the law in arriving at
13909		-	its final assessment or its revised final assessment and that
13910		-	the taxpayer had his or her opportunity for an administrative
13911		-	hearing and for judicial review, whether he or she availed
13912		-	himself or herself of either or both of these opportunities or
13913		-	not, the court shall enter judgment in favor of the Department
13914		-	and against the taxpayer for the amount shown to be due by the
13915		-	final assessment or the revised final assessment, and such
13916		-	judgment shall be filed of record in the court. Such judgment
13917		-	shall bear the rate of interest set in the Uniform Penalty and
13918		-	Interest Act, but otherwise shall have the same effect as
13919		-	other judgments. The judgment may be enforced, and all laws
13920		-	applicable to sales for the enforcement of a judgment shall be
13921		-	applicable to sales made under such judgments. The Department
13922		-	shall file the certified copy of its assessment, as herein
13923		-	provided, with the circuit court within 2 years after such
13924		-	assessment becomes final except when the taxpayer consents in
13925		-	writing to an extension of such filing period.
13926		-	If, when the cause of action for a proceeding in court
13927		-	accrues against a person, he or she is out of the State, the
13928		-	action may be commenced within the times herein limited, after
13929		-	his or her coming into or returning to the State; and if, after
13930		-	the cause of action accrues, he or she departs from and remains
13931		-
13932		-
13933		-	out of the State, the time of his or her absence is no part of
13934		-	the time limited for the commencement of the action; but the
13935		-	foregoing provisions concerning absence from the State shall
13936		-	not apply to any case in which, at the time the cause of action
13937		-	accrues, the party against whom the cause of action accrues is
13938		-	not a resident of this State. The time within which a court
13939		-	action is to be commenced by the Department hereunder shall
13940		-	not run while the taxpayer is a debtor in any proceeding under
13941		-	the federal Bankruptcy Code nor thereafter until 90 days after
13942		-	the Department is notified by such debtor of being discharged
13943		-	in bankruptcy.
13944		-	No claim shall be filed against the estate of any deceased
13945		-	person or a person under legal disability for any tax or
13946		-	penalty or part of either except in the manner prescribed and
13947		-	within the time limited by the Probate Act of 1975.
13948		-	The remedies provided for herein shall not be exclusive,
13949		-	but all remedies available to creditors for the collection of
13950		-	debts shall be available for the collection of any tax or
13951		-	penalty due hereunder.
13952		-	The collection of tax or penalty by any means provided for
13953		-	herein shall not be a bar to any prosecution under this Act.
13954		-	The certificate of the Director of the Department to the
13955		-	effect that a tax or amount required to be paid by this Act has
13956		-	not been paid, that a return has not been filed, or that
13957		-	information has not been supplied pursuant to the provisions
13958		-	of this Act, shall be prima facie evidence thereof.
13959		-
13960		-
13961		-	Notwithstanding any other provisions of this Act, any
13962		-	amount paid as tax or in respect of tax paid under this Act
13963		-	shall be deemed assessed upon the date of receipt of payment.
13964		-	All of the provisions of Sections 5a, 5b, 5c, 5d, 5e, 5f,
13965		-	5g, 5i and 5j of the Retailers' Occupation Tax Act, which are
13966		-	not inconsistent with this Act, shall apply, as far as
13967		-	practicable, to the subject matter of this Act to the same
13968		-	extent as if such provisions were included herein. References
13969		-	in such incorporated Sections of the Retailers' Occupation Tax
13970		-	Act to retailers, to sellers, or to persons engaged in the
13971		-	business of selling tangible personal property shall mean
13972		-	cigarette machine operator when used in this Act.
13973		-	(Source: P.A. 97-688, eff. 6-14-12.)
13974		-	Section 100-15. The Cigarette Tax Act is amended by
13975		-	changing Section 9a as follows:
13976		-	(35 ILCS 130/9a) (from Ch. 120, par. 453.9a)
13977		-	Sec. 9a. Examination and correction of returns.
13978		-	(1) As soon as practicable after any return is filed, the
13979		-	Department shall examine such return and shall correct such
13980		-	return according to its best judgment and information, which
13981		-	return so corrected by the Department shall be prima facie
13982		-	correct and shall be prima facie evidence of the correctness
13983		-	of the amount of tax due, as shown therein. Instead of
13984		-	requiring the distributor to file an amended return, the
13985		-
13986		-
13987		-	Department may simply notify the distributor of the correction
13988		-	or corrections it has made. Proof of such correction by the
13989		-	Department may be made at any hearing before the Department or
13990		-	in any legal proceeding by a reproduced copy of the
13991		-	Department's record relating thereto in the name of the
13992		-	Department under the certificate of the Director of Revenue.
13993		-	Such reproduced copy shall, without further proof, be admitted
13994		-	into evidence before the Department or in any legal proceeding
13995		-	and shall be prima facie proof of the correctness of the amount
13996		-	of tax due, as shown therein. If the Department finds that any
13997		-	amount of tax is due from the distributor, the Department
13998		-	shall issue the distributor a notice of tax liability for the
13999		-	amount of tax claimed by the Department to be due, together
14000		-	with a penalty in an amount determined in accordance with
14001		-	Sections 3-3, 3-5 and 3-6 of the Uniform Penalty and Interest
14002		-	Act. If, in administering the provisions of this Act,
14003		-	comparison of a return or returns of a distributor with the
14004		-	books, records and inventories of such distributor discloses a
14005		-	deficiency which cannot be allocated by the Department to a
14006		-	particular month or months, the Department shall issue the
14007		-	distributor a notice of tax liability for the amount of tax
14008		-	claimed by the Department to be due for a given period, but
14009		-	without any obligation upon the Department to allocate such
14010		-	deficiency to any particular month or months, together with a
14011		-	penalty in an amount determined in accordance with Sections
14012		-	3-3, 3-5 and 3-6 of the Uniform Penalty and Interest Act, under
14013		-
14014		-
14015		-	which circumstances the aforesaid notice of tax liability
14016		-	shall be prima facie correct and shall be prima facie evidence
14017		-	of the correctness of the amount of tax due, as shown therein;
14018		-	and proof of such correctness may be made in accordance with,
14019		-	and the admissibility of a reproduced copy of such notice of
14020		-	tax liability shall be governed by, all the provisions of this
14021		-	Act applicable to corrected returns. If any distributor filing
14022		-	any return dies or becomes a person under legal disability at
14023		-	any time before the Department issues its notice of tax
14024		-	liability, such notice shall be issued to the administrator,
14025		-	executor or other legal representative, as such, of such
14026		-	distributor.
14027		-	(2) Except as otherwise provided in this Section, if,
14028		-	within 60 days after such notice of tax liability, the
14029		-	distributor or his or her legal representative files a protest
14030		-	to such notice of tax liability and requests a hearing
14031		-	thereon, the Department shall give notice to such distributor
14032		-	or legal representative of the time and place fixed for such
14033		-	hearing, and shall hold a hearing in conformity with the
14034		-	provisions of this Act, and pursuant thereto shall issue a
14035		-	final assessment to such distributor or legal representative
14036		-	for the amount found to be due as a result of such hearing. On
14037		-	or after July 1, 2013, protests concerning matters that are
14038		-	subject to the jurisdiction of the Illinois Independent Tax
14039		-	Tribunal shall be filed in accordance with the Illinois
14040		-	Independent Tax Tribunal Act of 2012, and hearings concerning
14041		-
14042		-
14043		-	those matters shall be held before the Tribunal in accordance
14044		-	with that Act. With respect to protests filed with the
14045		-	Department prior to July 1, 2013 that would otherwise be
14046		-	subject to the jurisdiction of the Illinois Independent Tax
14047		-	Tribunal, the taxpayer may elect to be subject to the
14048		-	provisions of the Illinois Independent Tax Tribunal Act of
14049		-	2012 at any time on or after July 1, 2013, but not later than
14050		-	30 days after the date on which the protest was filed. If made,
14051		-	the election shall be irrevocable. If a protest to the notice
14052		-	of tax liability and a request for a hearing thereon is not
14053		-	filed within the time allowed by law, such notice of tax
14054		-	liability shall become final without the necessity of a final
14055		-	assessment being issued and shall be deemed to be a final
14056		-	assessment.
14057		-	(3) In case of failure to pay the tax, or any portion
14058		-	thereof, or any penalty provided for in this Act, when due, the
14059		-	Department may bring suit to recover the amount of such tax, or
14060		-	portion thereof, or penalty; or, if the taxpayer dies or
14061		-	becomes incompetent, by filing claim therefor against his
14062		-	estate; provided that no such action with respect to any tax,
14063		-	or portion thereof, or penalty, shall be instituted more than
14064		-	2 years after the cause of action accrues, except with the
14065		-	consent of the person from whom such tax or penalty is due.
14066		-	After the expiration of the period within which the person
14067		-	assessed may file an action for judicial review under the
14068		-	Administrative Review Law without such an action being filed,
14069		-
14070		-
14071		-	a certified copy of the final assessment or revised final
14072		-	assessment of the Department may be filed with the Circuit
14073		-	Court of the county in which the taxpayer has his or her
14074		-	principal place of business, or of Sangamon County in those
14075		-	cases in which the taxpayer does not have his principal place
14076		-	of business in this State. The certified copy of the final
14077		-	assessment or revised final assessment shall be accompanied by
14078		-	a certification which recites facts that are sufficient to
14079		-	show that the Department complied with the jurisdictional
14080		-	requirements of the Law in arriving at its final assessment or
14081		-	its revised final assessment and that the taxpayer had his or
14082		-	her opportunity for an administrative hearing and for judicial
14083		-	review, whether he availed himself or herself of either or
14084		-	both of these opportunities or not. If the court is satisfied
14085		-	that the Department complied with the jurisdictional
14086		-	requirements of the Law in arriving at its final assessment or
14087		-	its revised final assessment and that the taxpayer had his or
14088		-	her opportunity for an administrative hearing and for judicial
14089		-	review, whether he or she availed himself or herself of either
14090		-	or both of these opportunities or not, the court shall enter
14091		-	judgment in favor of the Department and against the taxpayer
14092		-	for the amount shown to be due by the final assessment or the
14093		-	revised final assessment, and such judgment shall be filed of
14094		-	record in the court. Such judgment shall bear the rate of
14095		-	interest set in the Uniform Penalty and Interest Act, but
14096		-	otherwise shall have the same effect as other judgments. The
14097		-
14098		-
14099		-	judgment may be enforced, and all laws applicable to sales for
14100		-	the enforcement of a judgment shall be applicable to sales
14101		-	made under such judgments. The Department shall file the
14102		-	certified copy of its assessment, as herein provided, with the
14103		-	Circuit Court within 2 years after such assessment becomes
14104		-	final except when the taxpayer consents in writing to an
14105		-	extension of such filing period.
14106		-	If, when the cause of action for a proceeding in court
14107		-	accrues against a person, he or she is out of the State, the
14108		-	action may be commenced within the times herein limited, after
14109		-	his or her coming into or return to the State; and if, after
14110		-	the cause of action accrues, he or she departs from and remains
14111		-	out of the State, the time of his or her absence is no part of
14112		-	the time limited for the commencement of the action; but the
14113		-	foregoing provisions concerning absence from the State shall
14114		-	not apply to any case in which, at the time the cause of action
14115		-	accrues, the party against whom the cause of action accrues is
14116		-	not a resident of this State. The time within which a court
14117		-	action is to be commenced by the Department hereunder shall
14118		-	not run while the taxpayer is a debtor in any proceeding under
14119		-	the Federal Bankruptcy Act nor thereafter until 90 days after
14120		-	the Department is notified by such debtor of being discharged
14121		-	in bankruptcy.
14122		-	No claim shall be filed against the estate of any deceased
14123		-	person or a person under legal disability for any tax or
14124		-	penalty or part of either except in the manner prescribed and
14125		-
14126		-
14127		-	within the time limited by the Probate Act of 1975, as amended.
14128		-	The remedies provided for herein shall not be exclusive,
14129		-	but all remedies available to creditors for the collection of
14130		-	debts shall be available for the collection of any tax or
14131		-	penalty due hereunder.
14132		-	The collection of tax or penalty by any means provided for
14133		-	herein shall not be a bar to any prosecution under this Act.
14134		-	The certificate of the Director of the Department to the
14135		-	effect that a tax or amount required to be paid by this Act has
14136		-	not been paid, that a return has not been filed, or that
14137		-	information has not been supplied pursuant to the provisions
14138		-	of this Act, shall be prima facie evidence thereof.
14139		-	Notwithstanding any other provisions of this Act, any
14140		-	amount paid as tax or in respect of tax paid under this Act
14141		-	shall be deemed assessed upon the date of receipt of payment.
14142		-	All of the provisions of Sections 5a, 5b, 5c, 5d, 5e, 5f,
14143		-	5g, 5i and 5j of the Retailers' Occupation Tax Act, which are
14144		-	not inconsistent with this Act, and Section 3-7 of the Uniform
14145		-	Penalty and Interest Act shall apply, as far as practicable,
14146		-	to the subject matter of this Act to the same extent as if such
14147		-	provisions were included herein. References in such
14148		-	incorporated Sections of the "Retailers' Occupation Tax Act"
14149		-	to retailers, to sellers or to persons engaged in the business
14150		-	of selling tangible personal property shall mean distributors
14151		-	when used in this Act.
14152		-	(Source: P.A. 97-1129, eff. 8-28-12; 98-463, eff. 8-16-13.)
14153		-
14154		-
14155		-	Section 100-20. The Cigarette Use Tax Act is amended by
14156		-	changing Section 13 as follows:
14157		-	(35 ILCS 135/13) (from Ch. 120, par. 453.43)
14158		-	Sec. 13. Examination and correction of return. As soon as
14159		-	practicable after any return is filed, the Department shall
14160		-	examine such return and shall correct such return according to
14161		-	its best judgment and information, which return so corrected
14162		-	by the Department shall be prima facie correct and shall be
14163		-	prima facie evidence of the correctness of the amount of tax
14164		-	due, as shown therein. Proof of such correction by the
14165		-	Department may be made at any hearing before the Department or
14166		-	in any legal proceeding by a reproduced copy of the
14167		-	Department's record relating thereto in the name of the
14168		-	Department under the certificate of the Director of Revenue.
14169		-	Such reproduced copy shall, without further proof, be admitted
14170		-	into evidence before the Department or in any legal proceeding
14171		-	and shall be prima facie proof of the correctness of the amount
14172		-	of tax due, as shown therein. If the tax as fixed by the
14173		-	Department is greater than the amount of the tax due under the
14174		-	return as filed, the Department shall issue the person filing
14175		-	such return a notice of tax liability for the amount of tax
14176		-	claimed by the Department to be due, together with a penalty in
14177		-	an amount determined in accordance with Sections 3-3, 3-5 and
14178		-	3-6 of the Uniform Penalty and Interest Act. If, in
14179		-
14180		-
14181		-	administering the provisions of this Act, comparison of a
14182		-	return or returns of a distributor with the books, records and
14183		-	inventories of such distributor discloses a deficiency which
14184		-	cannot be allocated by the Department to a particular month or
14185		-	months, the Department shall issue the distributor a notice of
14186		-	tax liability for the amount of tax claimed by the Department
14187		-	to be due for a given period, but without any obligation upon
14188		-	the Department to allocate such deficiency to any particular
14189		-	month or months, together with a penalty in an amount
14190		-	determined in accordance with Sections 3-3, 3-5 and 3-6 of the
14191		-	Uniform Penalty and Interest Act, under which circumstances
14192		-	the aforesaid notice of tax liability shall be prima facie
14193		-	correct and shall be prima facie evidence of the correctness
14194		-	of the amount of tax due, as shown therein; and proof of such
14195		-	correctness may be made in accordance with, and the
14196		-	admissibility of a reproduced copy of such notice of tax
14197		-	liability shall be governed by, all the provisions of this Act
14198		-	applicable to corrected returns.
14199		-	If any person filing any return dies or becomes a person
14200		-	under legal disability at any time before the Department
14201		-	issues its notice of tax liability, such notice shall be
14202		-	issued to the administrator, executor or other legal
14203		-	representative, as such, of such person.
14204		-	Except as otherwise provided in this Section, if within 60
14205		-	days after such notice of tax liability, the person to whom
14206		-	such notice is issued or his legal representative files a
14207		-
14208		-
14209		-	protest to such notice of tax liability and requests a hearing
14210		-	thereon, the Department shall give notice to such person or
14211		-	legal representative of the time and place fixed for such
14212		-	hearing, and shall hold a hearing in conformity with the
14213		-	provisions of this Act, and pursuant thereto shall issue a
14214		-	final assessment to such person or legal representative for
14215		-	the amount found to be due as a result of such hearing.
14216		-	Effective July 1, 2013, protests concerning matters that are
14217		-	subject to the jurisdiction of the Illinois Independent Tax
14218		-	Tribunal shall be filed with the Tribunal in accordance with
14219		-	the Illinois Independent Tax Tribunal Act of 2012, and
14220		-	hearings concerning those matters shall be held before the
14221		-	Tribunal in accordance with that Act. With respect to protests
14222		-	filed with the Department prior to July 1, 2013 that would
14223		-	otherwise be subject to the jurisdiction of the Illinois
14224		-	Independent Tax Tribunal, the person filing the protest may
14225		-	elect to be subject to the provisions of the Illinois
14226		-	Independent Tax Tribunal Act of 2012 at any time on or after
14227		-	July 1, 2013, but not later than 30 days after the date on
14228		-	which the protest was filed. If made, the election shall be
14229		-	irrevocable. If a protest to the notice of tax liability and a
14230		-	request for a hearing thereon is not filed within the time
14231		-	allowed by law, such notice of tax liability shall become
14232		-	final without the necessity of a final assessment being issued
14233		-	and shall be deemed to be a final assessment.
14234		-	Notwithstanding any other provisions of this Act, any
14235		-
14236		-
14237		-	amount paid as tax or in respect of tax paid under this Act
14238		-	shall be deemed assessed upon the date of receipt of payment.
14239		-	(Source: P.A. 97-1129, eff. 8-28-12.)
14240		-	Section 100-25. The Liquor Control Act of 1934 is amended
14241		-	by changing Section 8-5 as follows:
14242		-	(235 ILCS 5/8-5) (from Ch. 43, par. 163a)
14243		-	Sec. 8-5. As soon as practicable after any return is
14244		-	filed, the Department shall examine such return or amended
14245		-	return and shall correct such return according to its best
14246		-	judgment and information, which return so corrected by the
14247		-	Department shall be prima facie correct and shall be prima
14248		-	facie evidence of the correctness of the amount of tax due, as
14249		-	shown therein. Instead of requiring the licensee to file an
14250		-	amended return, the Department may simply notify the licensee
14251		-	of the correction or corrections it has made. Proof of such
14252		-	correction by the Department, or of the determination of the
14253		-	amount of tax due as provided in Sections 8-4 and 8-10, may be
14254		-	made at any hearing before the Department or in any legal
14255		-	proceeding by a reproduced copy of the Department's record
14256		-	relating thereto in the name of the Department under the
14257		-	certificate of the Director of Revenue. Such reproduced copy
14258		-	shall, without further proof, be admitted into evidence before
14259		-	the Department or in any legal proceeding and shall be prima
14260		-	facie proof of the correctness of the amount of tax due, as
14261		-
14262		-
14263		-	shown therein. If the return so corrected by the Department
14264		-	discloses the sale or use, by a licensed manufacturer or
14265		-	importing distributor, of alcoholic liquors as to which the
14266		-	tax provided for in this Article should have been paid, but has
14267		-	not been paid, in excess of the alcoholic liquors reported as
14268		-	being taxable by the licensee, and as to which the proper tax
14269		-	was paid the Department shall notify the licensee that it
14270		-	shall issue the taxpayer a notice of tax liability for the
14271		-	amount of tax claimed by the Department to be due, together
14272		-	with penalties at the rates prescribed by Sections 3-3, 3-5
14273		-	and 3-6 of the Uniform Penalty and Interest Act, which amount
14274		-	of tax shall be equivalent to the amount of tax which, at the
14275		-	prescribed rate per gallon, should have been paid with respect
14276		-	to the alcoholic liquors disposed of in excess of those
14277		-	reported as being taxable. No earlier than 90 days after the
14278		-	due date of the return, the Department may compare filed
14279		-	returns, or any amendments thereto, against reports of sales
14280		-	of alcoholic liquor submitted to the Department by other
14281		-	manufacturers and distributors. If a return or amended return
14282		-	is corrected by the Department because the return or amended
14283		-	return failed to disclose the purchase of alcoholic liquor
14284		-	from manufacturers or distributors on which the tax provided
14285		-	for in this Article should have been paid, but has not been
14286		-	paid, the Department shall issue the taxpayer a notice of tax
14287		-	liability for the amount of tax claimed by the Department to be
14288		-	due, together with penalties at the rates prescribed by
14289		-
14290		-
14291		-	Sections 3-3, 3-5, and 3-6 of the Uniform Penalty and Interest
14292		-	Act. In a case where no return has been filed, the Department
14293		-	shall determine the amount of tax due according to its best
14294		-	judgment and information and shall issue the taxpayer a notice
14295		-	of tax liability for the amount of tax claimed by the
14296		-	Department to be due as herein provided together with
14297		-	penalties at the rates prescribed by Sections 3-3, 3-5 and 3-6
14298		-	of the Uniform Penalty and Interest Act. If, in administering
14299		-	the provisions of this Act, a comparison of a licensee's
14300		-	return or returns with the books, records and physical
14301		-	inventories of such licensee discloses a deficiency which
14302		-	cannot be allocated by the Department to a particular month or
14303		-	months, the Department shall issue the taxpayer a notice of
14304		-	tax liability for the amount of tax claimed by the Department
14305		-	to be due for a given period, but without any obligation upon
14306		-	the Department to allocate such deficiency to any particular
14307		-	month or months, together with penalties at the rates
14308		-	prescribed by Sections 3-3, 3-5 and 3-6 of the Uniform Penalty
14309		-	and Interest Act, which amount of tax shall be equivalent to
14310		-	the amount of tax which, at the prescribed rate per gallon,
14311		-	should have been paid with respect to the alcoholic liquors
14312		-	disposed of in excess of those reported being taxable, with
14313		-	the tax thereon having been paid under which circumstances the
14314		-	aforesaid notice of tax liability shall be prima facie correct
14315		-	and shall be prima facie evidence of the correctness of the
14316		-	amount of tax due as shown therein; and proof of such
14317		-
14318		-
14319		-	correctness may be made in accordance with, and the
14320		-	admissibility of a reproduced copy of such notice of the
14321		-	Department's notice of tax liability shall be governed by, all
14322		-	the provisions of this Act applicable to corrected returns.
14323		-	If the licensee dies or becomes a person under legal
14324		-	disability at any time before the Department issues its notice
14325		-	of tax liability, such notice shall be issued to the
14326		-	administrator, executor or other legal representative, as
14327		-	such, of the deceased or licensee who is under legal
14328		-	disability.
14329		-	If such licensee or legal representative, within 60 days
14330		-	after such notice of tax liability, files a protest to such
14331		-	notice of tax liability and requests a hearing thereon, the
14332		-	Department shall give at least 7 days' notice to such licensee
14333		-	or legal representative, as the case may be, of the time and
14334		-	place fixed for such hearing and shall hold a hearing in
14335		-	conformity with the provisions of this Act, and pursuant
14336		-	thereto shall issue a final assessment to such licensee or
14337		-	legal representative for the amount found to be due as a result
14338		-	of such hearing.
14339		-	If a protest to the notice of tax liability and a request
14340		-	for a hearing thereon is not filed within 60 days after such
14341		-	notice of tax liability, such notice of tax liability shall
14342		-	become final without the necessity of a final assessment being
14343		-	issued and shall be deemed to be a final assessment.
14344		-	Notwithstanding any other provisions of this Act, any
14345		-
14346		-
14347		-	amount paid as tax or in respect of tax paid under this Act
14348		-	shall be deemed assessed upon the date of receipt of payment.
14349		-	In case of failure to pay the tax, or any portion thereof,
14350		-	or any penalty provided for herein, when due, the Department
14351		-	may recover the amount of such tax, or portion thereof, or
14352		-	penalty in a civil action; or if the licensee dies or becomes a
14353		-	person under legal disability, by filing a claim therefor
14354		-	against his or her estate; provided that no such claim shall be
14355		-	filed against the estate of any deceased or of the licensee who
14356		-	is under legal disability for any tax or penalty or portion
14357		-	thereof except in the manner prescribed and within the time
14358		-	limited by the Probate Act of 1975, as amended.
14359		-	The collection of any such tax and penalty, or either, by
14360		-	any means provided for herein, shall not be a bar to any
14361		-	prosecution under this Act.
14362		-	In addition to any other penalty provided for in this
14363		-	Article, all provisions of the Uniform Penalty and Interest
14364		-	Act that are not inconsistent with this Act apply.
14365		-	(Source: P.A. 100-1050, eff. 7-1-19; 101-16, eff. 6-14-19.)
14366		-	ARTICLE 110. PARTNERSHIPS
14367		-	Section 5. The Illinois Income Tax Act is amended by
14368		-	changing Section 201 as follows:
14369		-	(35 ILCS 5/201)
14370		-
14371		-
14372		-	Sec. 201. Tax imposed.
14373		-	(a) In general. A tax measured by net income is hereby
14374		-	imposed on every individual, corporation, trust and estate for
14375		-	each taxable year ending after July 31, 1969 on the privilege
14376		-	of earning or receiving income in or as a resident of this
14377		-	State. Such tax shall be in addition to all other occupation or
14378		-	privilege taxes imposed by this State or by any municipal
14379		-	corporation or political subdivision thereof.
14380		-	(b) Rates. The tax imposed by subsection (a) of this
14381		-	Section shall be determined as follows, except as adjusted by
14382		-	subsection (d-1):
14383		-	(1) In the case of an individual, trust or estate, for
14384		-	taxable years ending prior to July 1, 1989, an amount
14385		-	equal to 2 1/2% of the taxpayer's net income for the
14386		-	taxable year.
14387		-	(2) In the case of an individual, trust or estate, for
14388		-	taxable years beginning prior to July 1, 1989 and ending
14389		-	after June 30, 1989, an amount equal to the sum of (i) 2
14390		-	1/2% of the taxpayer's net income for the period prior to
14391		-	July 1, 1989, as calculated under Section 202.3, and (ii)
14392		-	3% of the taxpayer's net income for the period after June
14393		-	30, 1989, as calculated under Section 202.3.
14394		-	(3) In the case of an individual, trust or estate, for
14395		-	taxable years beginning after June 30, 1989, and ending
14396		-	prior to January 1, 2011, an amount equal to 3% of the
14397		-	taxpayer's net income for the taxable year.
14398		-
14399		-
14400		-	(4) In the case of an individual, trust, or estate,
14401		-	for taxable years beginning prior to January 1, 2011, and
14402		-	ending after December 31, 2010, an amount equal to the sum
14403		-	of (i) 3% of the taxpayer's net income for the period prior
14404		-	to January 1, 2011, as calculated under Section 202.5, and
14405		-	(ii) 5% of the taxpayer's net income for the period after
14406		-	December 31, 2010, as calculated under Section 202.5.
14407		-	(5) In the case of an individual, trust, or estate,
14408		-	for taxable years beginning on or after January 1, 2011,
14409		-	and ending prior to January 1, 2015, an amount equal to 5%
14410		-	of the taxpayer's net income for the taxable year.
14411		-	(5.1) In the case of an individual, trust, or estate,
14412		-	for taxable years beginning prior to January 1, 2015, and
14413		-	ending after December 31, 2014, an amount equal to the sum
14414		-	of (i) 5% of the taxpayer's net income for the period prior
14415		-	to January 1, 2015, as calculated under Section 202.5, and
14416		-	(ii) 3.75% of the taxpayer's net income for the period
14417		-	after December 31, 2014, as calculated under Section
14418		-	202.5.
14419		-	(5.2) In the case of an individual, trust, or estate,
14420		-	for taxable years beginning on or after January 1, 2015,
14421		-	and ending prior to July 1, 2017, an amount equal to 3.75%
14422		-	of the taxpayer's net income for the taxable year.
14423		-	(5.3) In the case of an individual, trust, or estate,
14424		-	for taxable years beginning prior to July 1, 2017, and
14425		-	ending after June 30, 2017, an amount equal to the sum of
14426		-
14427		-
14428		-	(i) 3.75% of the taxpayer's net income for the period
14429		-	prior to July 1, 2017, as calculated under Section 202.5,
14430		-	and (ii) 4.95% of the taxpayer's net income for the period
14431		-	after June 30, 2017, as calculated under Section 202.5.
14432		-	(5.4) In the case of an individual, trust, or estate,
14433		-	for taxable years beginning on or after July 1, 2017, an
14434		-	amount equal to 4.95% of the taxpayer's net income for the
14435		-	taxable year.
14436		-	(6) In the case of a corporation, for taxable years
14437		-	ending prior to July 1, 1989, an amount equal to 4% of the
14438		-	taxpayer's net income for the taxable year.
14439		-	(7) In the case of a corporation, for taxable years
14440		-	beginning prior to July 1, 1989 and ending after June 30,
14441		-	1989, an amount equal to the sum of (i) 4% of the
14442		-	taxpayer's net income for the period prior to July 1,
14443		-	1989, as calculated under Section 202.3, and (ii) 4.8% of
14444		-	the taxpayer's net income for the period after June 30,
14445		-	1989, as calculated under Section 202.3.
14446		-	(8) In the case of a corporation, for taxable years
14447		-	beginning after June 30, 1989, and ending prior to January
14448		-	1, 2011, an amount equal to 4.8% of the taxpayer's net
14449		-	income for the taxable year.
14450		-	(9) In the case of a corporation, for taxable years
14451		-	beginning prior to January 1, 2011, and ending after
14452		-	December 31, 2010, an amount equal to the sum of (i) 4.8%
14453		-	of the taxpayer's net income for the period prior to
14454		-
14455		-
14456		-	January 1, 2011, as calculated under Section 202.5, and
14457		-	(ii) 7% of the taxpayer's net income for the period after
14458		-	December 31, 2010, as calculated under Section 202.5.
14459		-	(10) In the case of a corporation, for taxable years
14460		-	beginning on or after January 1, 2011, and ending prior to
14461		-	January 1, 2015, an amount equal to 7% of the taxpayer's
14462		-	net income for the taxable year.
14463		-	(11) In the case of a corporation, for taxable years
14464		-	beginning prior to January 1, 2015, and ending after
14465		-	December 31, 2014, an amount equal to the sum of (i) 7% of
14466		-	the taxpayer's net income for the period prior to January
14467		-	1, 2015, as calculated under Section 202.5, and (ii) 5.25%
14468		-	of the taxpayer's net income for the period after December
14469		-	31, 2014, as calculated under Section 202.5.
14470		-	(12) In the case of a corporation, for taxable years
14471		-	beginning on or after January 1, 2015, and ending prior to
14472		-	July 1, 2017, an amount equal to 5.25% of the taxpayer's
14473		-	net income for the taxable year.
14474		-	(13) In the case of a corporation, for taxable years
14475		-	beginning prior to July 1, 2017, and ending after June 30,
14476		-	2017, an amount equal to the sum of (i) 5.25% of the
14477		-	taxpayer's net income for the period prior to July 1,
14478		-	2017, as calculated under Section 202.5, and (ii) 7% of
14479		-	the taxpayer's net income for the period after June 30,
14480		-	2017, as calculated under Section 202.5.
14481		-	(14) In the case of a corporation, for taxable years
14482		-
14483		-
14484		-	beginning on or after July 1, 2017, an amount equal to 7%
14485		-	of the taxpayer's net income for the taxable year.
14486		-	The rates under this subsection (b) are subject to the
14487		-	provisions of Section 201.5.
14488		-	(b-5) Surcharge; sale or exchange of assets, properties,
14489		-	and intangibles of organization gaming licensees. For each of
14490		-	taxable years 2019 through 2027, a surcharge is imposed on all
14491		-	taxpayers on income arising from the sale or exchange of
14492		-	capital assets, depreciable business property, real property
14493		-	used in the trade or business, and Section 197 intangibles (i)
14494		-	of an organization licensee under the Illinois Horse Racing
14495		-	Act of 1975 and (ii) of an organization gaming licensee under
14496		-	the Illinois Gambling Act. The amount of the surcharge is
14497		-	equal to the amount of federal income tax liability for the
14498		-	taxable year attributable to those sales and exchanges. The
14499		-	surcharge imposed shall not apply if:
14500		-	(1) the organization gaming license, organization
14501		-	license, or racetrack property is transferred as a result
14502		-	of any of the following:
14503		-	(A) bankruptcy, a receivership, or a debt
14504		-	adjustment initiated by or against the initial
14505		-	licensee or the substantial owners of the initial
14506		-	licensee;
14507		-	(B) cancellation, revocation, or termination of
14508		-	any such license by the Illinois Gaming Board or the
14509		-	Illinois Racing Board;
14510		-
14511		-
14512		-	(C) a determination by the Illinois Gaming Board
14513		-	that transfer of the license is in the best interests
14514		-	of Illinois gaming;
14515		-	(D) the death of an owner of the equity interest in
14516		-	a licensee;
14517		-	(E) the acquisition of a controlling interest in
14518		-	the stock or substantially all of the assets of a
14519		-	publicly traded company;
14520		-	(F) a transfer by a parent company to a wholly
14521		-	owned subsidiary; or
14522		-	(G) the transfer or sale to or by one person to
14523		-	another person where both persons were initial owners
14524		-	of the license when the license was issued; or
14525		-	(2) the controlling interest in the organization
14526		-	gaming license, organization license, or racetrack
14527		-	property is transferred in a transaction to lineal
14528		-	descendants in which no gain or loss is recognized or as a
14529		-	result of a transaction in accordance with Section 351 of
14530		-	the Internal Revenue Code in which no gain or loss is
14531		-	recognized; or
14532		-	(3) live horse racing was not conducted in 2010 at a
14533		-	racetrack located within 3 miles of the Mississippi River
14534		-	under a license issued pursuant to the Illinois Horse
14535		-	Racing Act of 1975.
14536		-	The transfer of an organization gaming license,
14537		-	organization license, or racetrack property by a person other
14538		-
14539		-
14540		-	than the initial licensee to receive the organization gaming
14541		-	license is not subject to a surcharge. The Department shall
14542		-	adopt rules necessary to implement and administer this
14543		-	subsection.
14544		-	(c) Personal Property Tax Replacement Income Tax.
14545		-	Beginning on July 1, 1979 and thereafter, in addition to such
14546		-	income tax, there is also hereby imposed the Personal Property
14547		-	Tax Replacement Income Tax measured by net income on every
14548		-	corporation (including Subchapter S corporations), partnership
14549		-	and trust, for each taxable year ending after June 30, 1979.
14550		-	Such taxes are imposed on the privilege of earning or
14551		-	receiving income in or as a resident of this State. The
14552		-	Personal Property Tax Replacement Income Tax shall be in
14553		-	addition to the income tax imposed by subsections (a) and (b)
14554		-	of this Section and in addition to all other occupation or
14555		-	privilege taxes imposed by this State or by any municipal
14556		-	corporation or political subdivision thereof.
14557		-	(d) Additional Personal Property Tax Replacement Income
14558		-	Tax Rates. The personal property tax replacement income tax
14559		-	imposed by this subsection and subsection (c) of this Section
14560		-	in the case of a corporation, other than a Subchapter S
14561		-	corporation and except as adjusted by subsection (d-1), shall
14562		-	be an additional amount equal to 2.85% of such taxpayer's net
14563		-	income for the taxable year, except that beginning on January
14564		-	1, 1981, and thereafter, the rate of 2.85% specified in this
14565		-	subsection shall be reduced to 2.5%, and in the case of a
14566		-
14567		-
14568		-	partnership, trust or a Subchapter S corporation shall be an
14569		-	additional amount equal to 1.5% of such taxpayer's net income
14570		-	for the taxable year.
14571		-	(d-1) Rate reduction for certain foreign insurers. In the
14572		-	case of a foreign insurer, as defined by Section 35A-5 of the
14573		-	Illinois Insurance Code, whose state or country of domicile
14574		-	imposes on insurers domiciled in Illinois a retaliatory tax
14575		-	(excluding any insurer whose premiums from reinsurance assumed
14576		-	are 50% or more of its total insurance premiums as determined
14577		-	under paragraph (2) of subsection (b) of Section 304, except
14578		-	that for purposes of this determination premiums from
14579		-	reinsurance do not include premiums from inter-affiliate
14580		-	reinsurance arrangements), beginning with taxable years ending
14581		-	on or after December 31, 1999, the sum of the rates of tax
14582		-	imposed by subsections (b) and (d) shall be reduced (but not
14583		-	increased) to the rate at which the total amount of tax imposed
14584		-	under this Act, net of all credits allowed under this Act,
14585		-	shall equal (i) the total amount of tax that would be imposed
14586		-	on the foreign insurer's net income allocable to Illinois for
14587		-	the taxable year by such foreign insurer's state or country of
14588		-	domicile if that net income were subject to all income taxes
14589		-	and taxes measured by net income imposed by such foreign
14590		-	insurer's state or country of domicile, net of all credits
14591		-	allowed or (ii) a rate of zero if no such tax is imposed on
14592		-	such income by the foreign insurer's state of domicile. For
14593		-	the purposes of this subsection (d-1), an inter-affiliate
14594		-
14595		-
14596		-	includes a mutual insurer under common management.
14597		-	(1) For the purposes of subsection (d-1), in no event
14598		-	shall the sum of the rates of tax imposed by subsections
14599		-	(b) and (d) be reduced below the rate at which the sum of:
14600		-	(A) the total amount of tax imposed on such
14601		-	foreign insurer under this Act for a taxable year, net
14602		-	of all credits allowed under this Act, plus
14603		-	(B) the privilege tax imposed by Section 409 of
14604		-	the Illinois Insurance Code, the fire insurance
14605		-	company tax imposed by Section 12 of the Fire
14606		-	Investigation Act, and the fire department taxes
14607		-	imposed under Section 11-10-1 of the Illinois
14608		-	Municipal Code,
14609		-	equals 1.25% for taxable years ending prior to December
14610		-	31, 2003, or 1.75% for taxable years ending on or after
14611		-	December 31, 2003, of the net taxable premiums written for
14612		-	the taxable year, as described by subsection (1) of
14613		-	Section 409 of the Illinois Insurance Code. This paragraph
14614		-	will in no event increase the rates imposed under
14615		-	subsections (b) and (d).
14616		-	(2) Any reduction in the rates of tax imposed by this
14617		-	subsection shall be applied first against the rates
14618		-	imposed by subsection (b) and only after the tax imposed
14619		-	by subsection (a) net of all credits allowed under this
14620		-	Section other than the credit allowed under subsection (i)
14621		-	has been reduced to zero, against the rates imposed by
14622		-
14623		-
14624		-	subsection (d).
14625		-	This subsection (d-1) is exempt from the provisions of
14626		-	Section 250.
14627		-	(e) Investment credit. A taxpayer shall be allowed a
14628		-	credit against the Personal Property Tax Replacement Income
14629		-	Tax for investment in qualified property.
14630		-	(1) A taxpayer shall be allowed a credit equal to .5%
14631		-	of the basis of qualified property placed in service
14632		-	during the taxable year, provided such property is placed
14633		-	in service on or after July 1, 1984. There shall be allowed
14634		-	an additional credit equal to .5% of the basis of
14635		-	qualified property placed in service during the taxable
14636		-	year, provided such property is placed in service on or
14637		-	after July 1, 1986, and the taxpayer's base employment
14638		-	within Illinois has increased by 1% or more over the
14639		-	preceding year as determined by the taxpayer's employment
14640		-	records filed with the Illinois Department of Employment
14641		-	Security. Taxpayers who are new to Illinois shall be
14642		-	deemed to have met the 1% growth in base employment for the
14643		-	first year in which they file employment records with the
14644		-	Illinois Department of Employment Security. The provisions
14645		-	added to this Section by Public Act 85-1200 (and restored
14646		-	by Public Act 87-895) shall be construed as declaratory of
14647		-	existing law and not as a new enactment. If, in any year,
14648		-	the increase in base employment within Illinois over the
14649		-	preceding year is less than 1%, the additional credit
14650		-
14651		-
14652		-	shall be limited to that percentage times a fraction, the
14653		-	numerator of which is .5% and the denominator of which is
14654		-	1%, but shall not exceed .5%. The investment credit shall
14655		-	not be allowed to the extent that it would reduce a
14656		-	taxpayer's liability in any tax year below zero, nor may
14657		-	any credit for qualified property be allowed for any year
14658		-	other than the year in which the property was placed in
14659		-	service in Illinois. For tax years ending on or after
14660		-	December 31, 1987, and on or before December 31, 1988, the
14661		-	credit shall be allowed for the tax year in which the
14662		-	property is placed in service, or, if the amount of the
14663		-	credit exceeds the tax liability for that year, whether it
14664		-	exceeds the original liability or the liability as later
14665		-	amended, such excess may be carried forward and applied to
14666		-	the tax liability of the 5 taxable years following the
14667		-	excess credit years if the taxpayer (i) makes investments
14668		-	which cause the creation of a minimum of 2,000 full-time
14669		-	equivalent jobs in Illinois, (ii) is located in an
14670		-	enterprise zone established pursuant to the Illinois
14671		-	Enterprise Zone Act and (iii) is certified by the
14672		-	Department of Commerce and Community Affairs (now
14673		-	Department of Commerce and Economic Opportunity) as
14674		-	complying with the requirements specified in clause (i)
14675		-	and (ii) by July 1, 1986. The Department of Commerce and
14676		-	Community Affairs (now Department of Commerce and Economic
14677		-	Opportunity) shall notify the Department of Revenue of all
14678		-
14679		-
14680		-	such certifications immediately. For tax years ending
14681		-	after December 31, 1988, the credit shall be allowed for
14682		-	the tax year in which the property is placed in service,
14683		-	or, if the amount of the credit exceeds the tax liability
14684		-	for that year, whether it exceeds the original liability
14685		-	or the liability as later amended, such excess may be
14686		-	carried forward and applied to the tax liability of the 5
14687		-	taxable years following the excess credit years. The
14688		-	credit shall be applied to the earliest year for which
14689		-	there is a liability. If there is credit from more than one
14690		-	tax year that is available to offset a liability, earlier
14691		-	credit shall be applied first.
14692		-	(2) The term "qualified property" means property
14693		-	which:
14694		-	(A) is tangible, whether new or used, including
14695		-	buildings and structural components of buildings and
14696		-	signs that are real property, but not including land
14697		-	or improvements to real property that are not a
14698		-	structural component of a building such as
14699		-	landscaping, sewer lines, local access roads, fencing,
14700		-	parking lots, and other appurtenances;
14701		-	(B) is depreciable pursuant to Section 167 of the
14702		-	Internal Revenue Code, except that "3-year property"
14703		-	as defined in Section 168(c)(2)(A) of that Code is not
14704		-	eligible for the credit provided by this subsection
14705		-	(e);
14706		-
14707		-
14708		-	(C) is acquired by purchase as defined in Section
14709		-	179(d) of the Internal Revenue Code;
14710		-	(D) is used in Illinois by a taxpayer who is
14711		-	primarily engaged in manufacturing, or in mining coal
14712		-	or fluorite, or in retailing, or was placed in service
14713		-	on or after July 1, 2006 in a River Edge Redevelopment
14714		-	Zone established pursuant to the River Edge
14715		-	Redevelopment Zone Act; and
14716		-	(E) has not previously been used in Illinois in
14717		-	such a manner and by such a person as would qualify for
14718		-	the credit provided by this subsection (e) or
14719		-	subsection (f).
14720		-	(3) For purposes of this subsection (e),
14721		-	"manufacturing" means the material staging and production
14722		-	of tangible personal property by procedures commonly
14723		-	regarded as manufacturing, processing, fabrication, or
14724		-	assembling which changes some existing material into new
14725		-	shapes, new qualities, or new combinations. For purposes
14726		-	of this subsection (e) the term "mining" shall have the
14727		-	same meaning as the term "mining" in Section 613(c) of the
14728		-	Internal Revenue Code. For purposes of this subsection
14729		-	(e), the term "retailing" means the sale of tangible
14730		-	personal property for use or consumption and not for
14731		-	resale, or services rendered in conjunction with the sale
14732		-	of tangible personal property for use or consumption and
14733		-	not for resale. For purposes of this subsection (e),
14734		-
14735		-
14736		-	"tangible personal property" has the same meaning as when
14737		-	that term is used in the Retailers' Occupation Tax Act,
14738		-	and, for taxable years ending after December 31, 2008,
14739		-	does not include the generation, transmission, or
14740		-	distribution of electricity.
14741		-	(4) The basis of qualified property shall be the basis
14742		-	used to compute the depreciation deduction for federal
14743		-	income tax purposes.
14744		-	(5) If the basis of the property for federal income
14745		-	tax depreciation purposes is increased after it has been
14746		-	placed in service in Illinois by the taxpayer, the amount
14747		-	of such increase shall be deemed property placed in
14748		-	service on the date of such increase in basis.
14749		-	(6) The term "placed in service" shall have the same
14750		-	meaning as under Section 46 of the Internal Revenue Code.
14751		-	(7) If during any taxable year, any property ceases to
14752		-	be qualified property in the hands of the taxpayer within
14753		-	48 months after being placed in service, or the situs of
14754		-	any qualified property is moved outside Illinois within 48
14755		-	months after being placed in service, the Personal
14756		-	Property Tax Replacement Income Tax for such taxable year
14757		-	shall be increased. Such increase shall be determined by
14758		-	(i) recomputing the investment credit which would have
14759		-	been allowed for the year in which credit for such
14760		-	property was originally allowed by eliminating such
14761		-	property from such computation and, (ii) subtracting such
14762		-
14763		-
14764		-	recomputed credit from the amount of credit previously
14765		-	allowed. For the purposes of this paragraph (7), a
14766		-	reduction of the basis of qualified property resulting
14767		-	from a redetermination of the purchase price shall be
14768		-	deemed a disposition of qualified property to the extent
14769		-	of such reduction.
14770		-	(8) Unless the investment credit is extended by law,
14771		-	the basis of qualified property shall not include costs
14772		-	incurred after December 31, 2018, except for costs
14773		-	incurred pursuant to a binding contract entered into on or
14774		-	before December 31, 2018.
14775		-	(9) Each taxable year ending before December 31, 2000,
14776		-	a partnership may elect to pass through to its partners
14777		-	the credits to which the partnership is entitled under
14778		-	this subsection (e) for the taxable year. A partner may
14779		-	use the credit allocated to him or her under this
14780		-	paragraph only against the tax imposed in subsections (c)
14781		-	and (d) of this Section. If the partnership makes that
14782		-	election, those credits shall be allocated among the
14783		-	partners in the partnership in accordance with the rules
14784		-	set forth in Section 704(b) of the Internal Revenue Code,
14785		-	and the rules promulgated under that Section, and the
14786		-	allocated amount of the credits shall be allowed to the
14787		-	partners for that taxable year. The partnership shall make
14788		-	this election on its Personal Property Tax Replacement
14789		-	Income Tax return for that taxable year. The election to
14790		-
14791		-
14792		-	pass through the credits shall be irrevocable.
14793		-	For taxable years ending on or after December 31,
14794		-	2000, a partner that qualifies its partnership for a
14795		-	subtraction under subparagraph (I) of paragraph (2) of
14796		-	subsection (d) of Section 203 or a shareholder that
14797		-	qualifies a Subchapter S corporation for a subtraction
14798		-	under subparagraph (S) of paragraph (2) of subsection (b)
14799		-	of Section 203 shall be allowed a credit under this
14800		-	subsection (e) equal to its share of the credit earned
14801		-	under this subsection (e) during the taxable year by the
14802		-	partnership or Subchapter S corporation, determined in
14803		-	accordance with the determination of income and
14804		-	distributive share of income under Sections 702 and 704
14805		-	and Subchapter S of the Internal Revenue Code. This
14806		-	paragraph is exempt from the provisions of Section 250.
14807		-	(f) Investment credit; Enterprise Zone; River Edge
14808		-	Redevelopment Zone.
14809		-	(1) A taxpayer shall be allowed a credit against the
14810		-	tax imposed by subsections (a) and (b) of this Section for
14811		-	investment in qualified property which is placed in
14812		-	service in an Enterprise Zone created pursuant to the
14813		-	Illinois Enterprise Zone Act or, for property placed in
14814		-	service on or after July 1, 2006, a River Edge
14815		-	Redevelopment Zone established pursuant to the River Edge
14816		-	Redevelopment Zone Act. For partners, shareholders of
14817		-	Subchapter S corporations, and owners of limited liability
14818		-
14819		-
14820		-	companies, if the liability company is treated as a
14821		-	partnership for purposes of federal and State income
14822		-	taxation, there shall be allowed a credit under this
14823		-	subsection (f) to be determined in accordance with the
14824		-	determination of income and distributive share of income
14825		-	under Sections 702 and 704 and Subchapter S of the
14826		-	Internal Revenue Code. The credit shall be .5% of the
14827		-	basis for such property. The credit shall be available
14828		-	only in the taxable year in which the property is placed in
14829		-	service in the Enterprise Zone or River Edge Redevelopment
14830		-	Zone and shall not be allowed to the extent that it would
14831		-	reduce a taxpayer's liability for the tax imposed by
14832		-	subsections (a) and (b) of this Section to below zero. For
14833		-	tax years ending on or after December 31, 1985, the credit
14834		-	shall be allowed for the tax year in which the property is
14835		-	placed in service, or, if the amount of the credit exceeds
14836		-	the tax liability for that year, whether it exceeds the
14837		-	original liability or the liability as later amended, such
14838		-	excess may be carried forward and applied to the tax
14839		-	liability of the 5 taxable years following the excess
14840		-	credit year. The credit shall be applied to the earliest
14841		-	year for which there is a liability. If there is credit
14842		-	from more than one tax year that is available to offset a
14843		-	liability, the credit accruing first in time shall be
14844		-	applied first.
14845		-	(2) The term qualified property means property which:
14846		-
14847		-
14848		-	(A) is tangible, whether new or used, including
14849		-	buildings and structural components of buildings;
14850		-	(B) is depreciable pursuant to Section 167 of the
14851		-	Internal Revenue Code, except that "3-year property"
14852		-	as defined in Section 168(c)(2)(A) of that Code is not
14853		-	eligible for the credit provided by this subsection
14854		-	(f);
14855		-	(C) is acquired by purchase as defined in Section
14856		-	179(d) of the Internal Revenue Code;
14857		-	(D) is used in the Enterprise Zone or River Edge
14858		-	Redevelopment Zone by the taxpayer; and
14859		-	(E) has not been previously used in Illinois in
14860		-	such a manner and by such a person as would qualify for
14861		-	the credit provided by this subsection (f) or
14862		-	subsection (e).
14863		-	(3) The basis of qualified property shall be the basis
14864		-	used to compute the depreciation deduction for federal
14865		-	income tax purposes.
14866		-	(4) If the basis of the property for federal income
14867		-	tax depreciation purposes is increased after it has been
14868		-	placed in service in the Enterprise Zone or River Edge
14869		-	Redevelopment Zone by the taxpayer, the amount of such
14870		-	increase shall be deemed property placed in service on the
14871		-	date of such increase in basis.
14872		-	(5) The term "placed in service" shall have the same
14873		-	meaning as under Section 46 of the Internal Revenue Code.
14874		-
14875		-
14876		-	(6) If during any taxable year, any property ceases to
14877		-	be qualified property in the hands of the taxpayer within
14878		-	48 months after being placed in service, or the situs of
14879		-	any qualified property is moved outside the Enterprise
14880		-	Zone or River Edge Redevelopment Zone within 48 months
14881		-	after being placed in service, the tax imposed under
14882		-	subsections (a) and (b) of this Section for such taxable
14883		-	year shall be increased. Such increase shall be determined
14884		-	by (i) recomputing the investment credit which would have
14885		-	been allowed for the year in which credit for such
14886		-	property was originally allowed by eliminating such
14887		-	property from such computation, and (ii) subtracting such
14888		-	recomputed credit from the amount of credit previously
14889		-	allowed. For the purposes of this paragraph (6), a
14890		-	reduction of the basis of qualified property resulting
14891		-	from a redetermination of the purchase price shall be
14892		-	deemed a disposition of qualified property to the extent
14893		-	of such reduction.
14894		-	(7) There shall be allowed an additional credit equal
14895		-	to 0.5% of the basis of qualified property placed in
14896		-	service during the taxable year in a River Edge
14897		-	Redevelopment Zone, provided such property is placed in
14898		-	service on or after July 1, 2006, and the taxpayer's base
14899		-	employment within Illinois has increased by 1% or more
14900		-	over the preceding year as determined by the taxpayer's
14901		-	employment records filed with the Illinois Department of
14902		-
14903		-
14904		-	Employment Security. Taxpayers who are new to Illinois
14905		-	shall be deemed to have met the 1% growth in base
14906		-	employment for the first year in which they file
14907		-	employment records with the Illinois Department of
14908		-	Employment Security. If, in any year, the increase in base
14909		-	employment within Illinois over the preceding year is less
14910		-	than 1%, the additional credit shall be limited to that
14911		-	percentage times a fraction, the numerator of which is
14912		-	0.5% and the denominator of which is 1%, but shall not
14913		-	exceed 0.5%.
14914		-	(8) For taxable years beginning on or after January 1,
14915		-	2021, there shall be allowed an Enterprise Zone
14916		-	construction jobs credit against the taxes imposed under
14917		-	subsections (a) and (b) of this Section as provided in
14918		-	Section 13 of the Illinois Enterprise Zone Act.
14919		-	The credit or credits may not reduce the taxpayer's
14920		-	liability to less than zero. If the amount of the credit or
14921		-	credits exceeds the taxpayer's liability, the excess may
14922		-	be carried forward and applied against the taxpayer's
14923		-	liability in succeeding calendar years in the same manner
14924		-	provided under paragraph (4) of Section 211 of this Act.
14925		-	The credit or credits shall be applied to the earliest
14926		-	year for which there is a tax liability. If there are
14927		-	credits from more than one taxable year that are available
14928		-	to offset a liability, the earlier credit shall be applied
14929		-	first.
14930		-
14931		-
14932		-	For partners, shareholders of Subchapter S
14933		-	corporations, and owners of limited liability companies,
14934		-	if the liability company is treated as a partnership for
14935		-	the purposes of federal and State income taxation, there
14936		-	shall be allowed a credit under this Section to be
14937		-	determined in accordance with the determination of income
14938		-	and distributive share of income under Sections 702 and
14939		-	704 and Subchapter S of the Internal Revenue Code.
14940		-	The total aggregate amount of credits awarded under
14941		-	the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
14942		-	shall not exceed $20,000,000 in any State fiscal year.
14943		-	This paragraph (8) is exempt from the provisions of
14944		-	Section 250.
14945		-	(g) (Blank).
14946		-	(h) Investment credit; High Impact Business.
14947		-	(1) Subject to subsections (b) and (b-5) of Section
14948		-	5.5 of the Illinois Enterprise Zone Act, a taxpayer shall
14949		-	be allowed a credit against the tax imposed by subsections
14950		-	(a) and (b) of this Section for investment in qualified
14951		-	property which is placed in service by a Department of
14952		-	Commerce and Economic Opportunity designated High Impact
14953		-	Business. The credit shall be .5% of the basis for such
14954		-	property. The credit shall not be available (i) until the
14955		-	minimum investments in qualified property set forth in
14956		-	subdivision (a)(3)(A) of Section 5.5 of the Illinois
14957		-	Enterprise Zone Act have been satisfied or (ii) until the
14958		-
14959		-
14960		-	time authorized in subsection (b-5) of the Illinois
14961		-	Enterprise Zone Act for entities designated as High Impact
14962		-	Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
14963		-	(a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
14964		-	Act, and shall not be allowed to the extent that it would
14965		-	reduce a taxpayer's liability for the tax imposed by
14966		-	subsections (a) and (b) of this Section to below zero. The
14967		-	credit applicable to such investments shall be taken in
14968		-	the taxable year in which such investments have been
14969		-	completed. The credit for additional investments beyond
14970		-	the minimum investment by a designated high impact
14971		-	business authorized under subdivision (a)(3)(A) of Section
14972		-	5.5 of the Illinois Enterprise Zone Act shall be available
14973		-	only in the taxable year in which the property is placed in
14974		-	service and shall not be allowed to the extent that it
14975		-	would reduce a taxpayer's liability for the tax imposed by
14976		-	subsections (a) and (b) of this Section to below zero. For
14977		-	tax years ending on or after December 31, 1987, the credit
14978		-	shall be allowed for the tax year in which the property is
14979		-	placed in service, or, if the amount of the credit exceeds
14980		-	the tax liability for that year, whether it exceeds the
14981		-	original liability or the liability as later amended, such
14982		-	excess may be carried forward and applied to the tax
14983		-	liability of the 5 taxable years following the excess
14984		-	credit year. The credit shall be applied to the earliest
14985		-	year for which there is a liability. If there is credit
14986		-
14987		-
14988		-	from more than one tax year that is available to offset a
14989		-	liability, the credit accruing first in time shall be
14990		-	applied first.
14991		-	Changes made in this subdivision (h)(1) by Public Act
14992		-	88-670 restore changes made by Public Act 85-1182 and
14993		-	reflect existing law.
14994		-	(2) The term qualified property means property which:
14995		-	(A) is tangible, whether new or used, including
14996		-	buildings and structural components of buildings;
14997		-	(B) is depreciable pursuant to Section 167 of the
14998		-	Internal Revenue Code, except that "3-year property"
14999		-	as defined in Section 168(c)(2)(A) of that Code is not
15000		-	eligible for the credit provided by this subsection
15001		-	(h);
15002		-	(C) is acquired by purchase as defined in Section
15003		-	179(d) of the Internal Revenue Code; and
15004		-	(D) is not eligible for the Enterprise Zone
15005		-	Investment Credit provided by subsection (f) of this
15006		-	Section.
15007		-	(3) The basis of qualified property shall be the basis
15008		-	used to compute the depreciation deduction for federal
15009		-	income tax purposes.
15010		-	(4) If the basis of the property for federal income
15011		-	tax depreciation purposes is increased after it has been
15012		-	placed in service in a federally designated Foreign Trade
15013		-	Zone or Sub-Zone located in Illinois by the taxpayer, the
15014		-
15015		-
15016		-	amount of such increase shall be deemed property placed in
15017		-	service on the date of such increase in basis.
15018		-	(5) The term "placed in service" shall have the same
15019		-	meaning as under Section 46 of the Internal Revenue Code.
15020		-	(6) If during any taxable year ending on or before
15021		-	December 31, 1996, any property ceases to be qualified
15022		-	property in the hands of the taxpayer within 48 months
15023		-	after being placed in service, or the situs of any
15024		-	qualified property is moved outside Illinois within 48
15025		-	months after being placed in service, the tax imposed
15026		-	under subsections (a) and (b) of this Section for such
15027		-	taxable year shall be increased. Such increase shall be
15028		-	determined by (i) recomputing the investment credit which
15029		-	would have been allowed for the year in which credit for
15030		-	such property was originally allowed by eliminating such
15031		-	property from such computation, and (ii) subtracting such
15032		-	recomputed credit from the amount of credit previously
15033		-	allowed. For the purposes of this paragraph (6), a
15034		-	reduction of the basis of qualified property resulting
15035		-	from a redetermination of the purchase price shall be
15036		-	deemed a disposition of qualified property to the extent
15037		-	of such reduction.
15038		-	(7) Beginning with tax years ending after December 31,
15039		-	1996, if a taxpayer qualifies for the credit under this
15040		-	subsection (h) and thereby is granted a tax abatement and
15041		-	the taxpayer relocates its entire facility in violation of
15042		-
15043		-
15044		-	the explicit terms and length of the contract under
15045		-	Section 18-183 of the Property Tax Code, the tax imposed
15046		-	under subsections (a) and (b) of this Section shall be
15047		-	increased for the taxable year in which the taxpayer
15048		-	relocated its facility by an amount equal to the amount of
15049		-	credit received by the taxpayer under this subsection (h).
15050		-	(h-5) High Impact Business construction jobs credit. For
15051		-	taxable years beginning on or after January 1, 2021, there
15052		-	shall also be allowed a High Impact Business construction jobs
15053		-	credit against the tax imposed under subsections (a) and (b)
15054		-	of this Section as provided in subsections (i) and (j) of
15055		-	Section 5.5 of the Illinois Enterprise Zone Act.
15056		-	The credit or credits may not reduce the taxpayer's
15057		-	liability to less than zero. If the amount of the credit or
15058		-	credits exceeds the taxpayer's liability, the excess may be
15059		-	carried forward and applied against the taxpayer's liability
15060		-	in succeeding calendar years in the manner provided under
15061		-	paragraph (4) of Section 211 of this Act. The credit or credits
15062		-	shall be applied to the earliest year for which there is a tax
15063		-	liability. If there are credits from more than one taxable
15064		-	year that are available to offset a liability, the earlier
15065		-	credit shall be applied first.
15066		-	For partners, shareholders of Subchapter S corporations,
15067		-	and owners of limited liability companies, if the liability
15068		-	company is treated as a partnership for the purposes of
15069		-	federal and State income taxation, there shall be allowed a
15070		-
15071		-
15072		-	credit under this Section to be determined in accordance with
15073		-	the determination of income and distributive share of income
15074		-	under Sections 702 and 704 and Subchapter S of the Internal
15075		-	Revenue Code.
15076		-	The total aggregate amount of credits awarded under the
15077		-	Blue Collar Jobs Act (Article 20 of Public Act 101-9) shall not
15078		-	exceed $20,000,000 in any State fiscal year.
15079		-	This subsection (h-5) is exempt from the provisions of
15080		-	Section 250.
15081		-	(i) Credit for Personal Property Tax Replacement Income
15082		-	Tax. For tax years ending prior to December 31, 2003, a credit
15083		-	shall be allowed against the tax imposed by subsections (a)
15084		-	and (b) of this Section for the tax imposed by subsections (c)
15085		-	and (d) of this Section. This credit shall be computed by
15086		-	multiplying the tax imposed by subsections (c) and (d) of this
15087		-	Section by a fraction, the numerator of which is base income
15088		-	allocable to Illinois and the denominator of which is Illinois
15089		-	base income, and further multiplying the product by the tax
15090		-	rate imposed by subsections (a) and (b) of this Section.
15091		-	Any credit earned on or after December 31, 1986 under this
15092		-	subsection which is unused in the year the credit is computed
15093		-	because it exceeds the tax liability imposed by subsections
15094		-	(a) and (b) for that year (whether it exceeds the original
15095		-	liability or the liability as later amended) may be carried
15096		-	forward and applied to the tax liability imposed by
15097		-	subsections (a) and (b) of the 5 taxable years following the
15098		-
15099		-
15100		-	excess credit year, provided that no credit may be carried
15101		-	forward to any year ending on or after December 31, 2003. This
15102		-	credit shall be applied first to the earliest year for which
15103		-	there is a liability. If there is a credit under this
15104		-	subsection from more than one tax year that is available to
15105		-	offset a liability the earliest credit arising under this
15106		-	subsection shall be applied first.
15107		-	If, during any taxable year ending on or after December
15108		-	31, 1986, the tax imposed by subsections (c) and (d) of this
15109		-	Section for which a taxpayer has claimed a credit under this
15110		-	subsection (i) is reduced, the amount of credit for such tax
15111		-	shall also be reduced. Such reduction shall be determined by
15112		-	recomputing the credit to take into account the reduced tax
15113		-	imposed by subsections (c) and (d). If any portion of the
15114		-	reduced amount of credit has been carried to a different
15115		-	taxable year, an amended return shall be filed for such
15116		-	taxable year to reduce the amount of credit claimed.
15117		-	(j) Training expense credit. Beginning with tax years
15118		-	ending on or after December 31, 1986 and prior to December 31,
15119		-	2003, a taxpayer shall be allowed a credit against the tax
15120		-	imposed by subsections (a) and (b) under this Section for all
15121		-	amounts paid or accrued, on behalf of all persons employed by
15122		-	the taxpayer in Illinois or Illinois residents employed
15123		-	outside of Illinois by a taxpayer, for educational or
15124		-	vocational training in semi-technical or technical fields or
15125		-	semi-skilled or skilled fields, which were deducted from gross
15126		-
15127		-
15128		-	income in the computation of taxable income. The credit
15129		-	against the tax imposed by subsections (a) and (b) shall be
15130		-	1.6% of such training expenses. For partners, shareholders of
15131		-	subchapter S corporations, and owners of limited liability
15132		-	companies, if the liability company is treated as a
15133		-	partnership for purposes of federal and State income taxation,
15134		-	there shall be allowed a credit under this subsection (j) to be
15135		-	determined in accordance with the determination of income and
15136		-	distributive share of income under Sections 702 and 704 and
15137		-	subchapter S of the Internal Revenue Code.
15138		-	Any credit allowed under this subsection which is unused
15139		-	in the year the credit is earned may be carried forward to each
15140		-	of the 5 taxable years following the year for which the credit
15141		-	is first computed until it is used. This credit shall be
15142		-	applied first to the earliest year for which there is a
15143		-	liability. If there is a credit under this subsection from
15144		-	more than one tax year that is available to offset a liability,
15145		-	the earliest credit arising under this subsection shall be
15146		-	applied first. No carryforward credit may be claimed in any
15147		-	tax year ending on or after December 31, 2003.
15148		-	(k) Research and development credit. For tax years ending
15149		-	after July 1, 1990 and prior to December 31, 2003, and
15150		-	beginning again for tax years ending on or after December 31,
15151		-	2004, and ending prior to January 1, 2027, a taxpayer shall be
15152		-	allowed a credit against the tax imposed by subsections (a)
15153		-	and (b) of this Section for increasing research activities in
15154		-
15155		-
15156		-	this State. The credit allowed against the tax imposed by
15157		-	subsections (a) and (b) shall be equal to 6 1/2% of the
15158		-	qualifying expenditures for increasing research activities in
15159		-	this State. For partners, shareholders of subchapter S
15160		-	corporations, and owners of limited liability companies, if
15161		-	the liability company is treated as a partnership for purposes
15162		-	of federal and State income taxation, there shall be allowed a
15163		-	credit under this subsection to be determined in accordance
15164		-	with the determination of income and distributive share of
15165		-	income under Sections 702 and 704 and subchapter S of the
15166		-	Internal Revenue Code.
15167		-	For purposes of this subsection, "qualifying expenditures"
15168		-	means the qualifying expenditures as defined for the federal
15169		-	credit for increasing research activities which would be
15170		-	allowable under Section 41 of the Internal Revenue Code and
15171		-	which are conducted in this State, "qualifying expenditures
15172		-	for increasing research activities in this State" means the
15173		-	excess of qualifying expenditures for the taxable year in
15174		-	which incurred over qualifying expenditures for the base
15175		-	period, "qualifying expenditures for the base period" means
15176		-	the average of the qualifying expenditures for each year in
15177		-	the base period, and "base period" means the 3 taxable years
15178		-	immediately preceding the taxable year for which the
15179		-	determination is being made.
15180		-	Any credit in excess of the tax liability for the taxable
15181		-	year may be carried forward. A taxpayer may elect to have the
15182		-
15183		-
15184		-	unused credit shown on its final completed return carried over
15185		-	as a credit against the tax liability for the following 5
15186		-	taxable years or until it has been fully used, whichever
15187		-	occurs first; provided that no credit earned in a tax year
15188		-	ending prior to December 31, 2003 may be carried forward to any
15189		-	year ending on or after December 31, 2003.
15190		-	If an unused credit is carried forward to a given year from
15191		-	2 or more earlier years, that credit arising in the earliest
15192		-	year will be applied first against the tax liability for the
15193		-	given year. If a tax liability for the given year still
15194		-	remains, the credit from the next earliest year will then be
15195		-	applied, and so on, until all credits have been used or no tax
15196		-	liability for the given year remains. Any remaining unused
15197		-	credit or credits then will be carried forward to the next
15198		-	following year in which a tax liability is incurred, except
15199		-	that no credit can be carried forward to a year which is more
15200		-	than 5 years after the year in which the expense for which the
15201		-	credit is given was incurred.
15202		-	No inference shall be drawn from Public Act 91-644 in
15203		-	construing this Section for taxable years beginning before
15204		-	January 1, 1999.
15205		-	It is the intent of the General Assembly that the research
15206		-	and development credit under this subsection (k) shall apply
15207		-	continuously for all tax years ending on or after December 31,
15208		-	2004 and ending prior to January 1, 2027, including, but not
15209		-	limited to, the period beginning on January 1, 2016 and ending
15210		-
15211		-
15212		-	on July 6, 2017 (the effective date of Public Act 100-22). All
15213		-	actions taken in reliance on the continuation of the credit
15214		-	under this subsection (k) by any taxpayer are hereby
15215		-	validated.
15216		-	(l) Environmental Remediation Tax Credit.
15217		-	(i) For tax years ending after December 31, 1997 and
15218		-	on or before December 31, 2001, a taxpayer shall be
15219		-	allowed a credit against the tax imposed by subsections
15220		-	(a) and (b) of this Section for certain amounts paid for
15221		-	unreimbursed eligible remediation costs, as specified in
15222		-	this subsection. For purposes of this Section,
15223		-	"unreimbursed eligible remediation costs" means costs
15224		-	approved by the Illinois Environmental Protection Agency
15225		-	("Agency") under Section 58.14 of the Environmental
15226		-	Protection Act that were paid in performing environmental
15227		-	remediation at a site for which a No Further Remediation
15228		-	Letter was issued by the Agency and recorded under Section
15229		-	58.10 of the Environmental Protection Act. The credit must
15230		-	be claimed for the taxable year in which Agency approval
15231		-	of the eligible remediation costs is granted. The credit
15232		-	is not available to any taxpayer if the taxpayer or any
15233		-	related party caused or contributed to, in any material
15234		-	respect, a release of regulated substances on, in, or
15235		-	under the site that was identified and addressed by the
15236		-	remedial action pursuant to the Site Remediation Program
15237		-	of the Environmental Protection Act. After the Pollution
15238		-
15239		-
15240		-	Control Board rules are adopted pursuant to the Illinois
15241		-	Administrative Procedure Act for the administration and
15242		-	enforcement of Section 58.9 of the Environmental
15243		-	Protection Act, determinations as to credit availability
15244		-	for purposes of this Section shall be made consistent with
15245		-	those rules. For purposes of this Section, "taxpayer"
15246		-	includes a person whose tax attributes the taxpayer has
15247		-	succeeded to under Section 381 of the Internal Revenue
15248		-	Code and "related party" includes the persons disallowed a
15249		-	deduction for losses by paragraphs (b), (c), and (f)(1) of
15250		-	Section 267 of the Internal Revenue Code by virtue of
15251		-	being a related taxpayer, as well as any of its partners.
15252		-	The credit allowed against the tax imposed by subsections
15253		-	(a) and (b) shall be equal to 25% of the unreimbursed
15254		-	eligible remediation costs in excess of $100,000 per site,
15255		-	except that the $100,000 threshold shall not apply to any
15256		-	site contained in an enterprise zone as determined by the
15257		-	Department of Commerce and Community Affairs (now
15258		-	Department of Commerce and Economic Opportunity). The
15259		-	total credit allowed shall not exceed $40,000 per year
15260		-	with a maximum total of $150,000 per site. For partners
15261		-	and shareholders of subchapter S corporations, there shall
15262		-	be allowed a credit under this subsection to be determined
15263		-	in accordance with the determination of income and
15264		-	distributive share of income under Sections 702 and 704
15265		-	and subchapter S of the Internal Revenue Code.
15266		-
15267		-
15268		-	(ii) A credit allowed under this subsection that is
15269		-	unused in the year the credit is earned may be carried
15270		-	forward to each of the 5 taxable years following the year
15271		-	for which the credit is first earned until it is used. The
15272		-	term "unused credit" does not include any amounts of
15273		-	unreimbursed eligible remediation costs in excess of the
15274		-	maximum credit per site authorized under paragraph (i).
15275		-	This credit shall be applied first to the earliest year
15276		-	for which there is a liability. If there is a credit under
15277		-	this subsection from more than one tax year that is
15278		-	available to offset a liability, the earliest credit
15279		-	arising under this subsection shall be applied first. A
15280		-	credit allowed under this subsection may be sold to a
15281		-	buyer as part of a sale of all or part of the remediation
15282		-	site for which the credit was granted. The purchaser of a
15283		-	remediation site and the tax credit shall succeed to the
15284		-	unused credit and remaining carry-forward period of the
15285		-	seller. To perfect the transfer, the assignor shall record
15286		-	the transfer in the chain of title for the site and provide
15287		-	written notice to the Director of the Illinois Department
15288		-	of Revenue of the assignor's intent to sell the
15289		-	remediation site and the amount of the tax credit to be
15290		-	transferred as a portion of the sale. In no event may a
15291		-	credit be transferred to any taxpayer if the taxpayer or a
15292		-	related party would not be eligible under the provisions
15293		-	of subsection (i).
15294		-
15295		-
15296		-	(iii) For purposes of this Section, the term "site"
15297		-	shall have the same meaning as under Section 58.2 of the
15298		-	Environmental Protection Act.
15299		-	(m) Education expense credit. Beginning with tax years
15300		-	ending after December 31, 1999, a taxpayer who is the
15301		-	custodian of one or more qualifying pupils shall be allowed a
15302		-	credit against the tax imposed by subsections (a) and (b) of
15303		-	this Section for qualified education expenses incurred on
15304		-	behalf of the qualifying pupils. The credit shall be equal to
15305		-	25% of qualified education expenses, but in no event may the
15306		-	total credit under this subsection claimed by a family that is
15307		-	the custodian of qualifying pupils exceed (i) $500 for tax
15308		-	years ending prior to December 31, 2017, and (ii) $750 for tax
15309		-	years ending on or after December 31, 2017. In no event shall a
15310		-	credit under this subsection reduce the taxpayer's liability
15311		-	under this Act to less than zero. Notwithstanding any other
15312		-	provision of law, for taxable years beginning on or after
15313		-	January 1, 2017, no taxpayer may claim a credit under this
15314		-	subsection (m) if the taxpayer's adjusted gross income for the
15315		-	taxable year exceeds (i) $500,000, in the case of spouses
15316		-	filing a joint federal tax return or (ii) $250,000, in the case
15317		-	of all other taxpayers. This subsection is exempt from the
15318		-	provisions of Section 250 of this Act.
15319		-	For purposes of this subsection:
15320		-	"Qualifying pupils" means individuals who (i) are
15321		-	residents of the State of Illinois, (ii) are under the age of
15322		-
15323		-
15324		-	21 at the close of the school year for which a credit is
15325		-	sought, and (iii) during the school year for which a credit is
15326		-	sought were full-time pupils enrolled in a kindergarten
15327		-	through twelfth grade education program at any school, as
15328		-	defined in this subsection.
15329		-	"Qualified education expense" means the amount incurred on
15330		-	behalf of a qualifying pupil in excess of $250 for tuition,
15331		-	book fees, and lab fees at the school in which the pupil is
15332		-	enrolled during the regular school year.
15333		-	"School" means any public or nonpublic elementary or
15334		-	secondary school in Illinois that is in compliance with Title
15335		-	VI of the Civil Rights Act of 1964 and attendance at which
15336		-	satisfies the requirements of Section 26-1 of the School Code,
15337		-	except that nothing shall be construed to require a child to
15338		-	attend any particular public or nonpublic school to qualify
15339		-	for the credit under this Section.
15340		-	"Custodian" means, with respect to qualifying pupils, an
15341		-	Illinois resident who is a parent, the parents, a legal
15342		-	guardian, or the legal guardians of the qualifying pupils.
15343		-	(n) River Edge Redevelopment Zone site remediation tax
15344		-	credit.
15345		-	(i) For tax years ending on or after December 31,
15346		-	2006, a taxpayer shall be allowed a credit against the tax
15347		-	imposed by subsections (a) and (b) of this Section for
15348		-	certain amounts paid for unreimbursed eligible remediation
15349		-	costs, as specified in this subsection. For purposes of
15350		-
15351		-
15352		-	this Section, "unreimbursed eligible remediation costs"
15353		-	means costs approved by the Illinois Environmental
15354		-	Protection Agency ("Agency") under Section 58.14a of the
15355		-	Environmental Protection Act that were paid in performing
15356		-	environmental remediation at a site within a River Edge
15357		-	Redevelopment Zone for which a No Further Remediation
15358		-	Letter was issued by the Agency and recorded under Section
15359		-	58.10 of the Environmental Protection Act. The credit must
15360		-	be claimed for the taxable year in which Agency approval
15361		-	of the eligible remediation costs is granted. The credit
15362		-	is not available to any taxpayer if the taxpayer or any
15363		-	related party caused or contributed to, in any material
15364		-	respect, a release of regulated substances on, in, or
15365		-	under the site that was identified and addressed by the
15366		-	remedial action pursuant to the Site Remediation Program
15367		-	of the Environmental Protection Act. Determinations as to
15368		-	credit availability for purposes of this Section shall be
15369		-	made consistent with rules adopted by the Pollution
15370		-	Control Board pursuant to the Illinois Administrative
15371		-	Procedure Act for the administration and enforcement of
15372		-	Section 58.9 of the Environmental Protection Act. For
15373		-	purposes of this Section, "taxpayer" includes a person
15374		-	whose tax attributes the taxpayer has succeeded to under
15375		-	Section 381 of the Internal Revenue Code and "related
15376		-	party" includes the persons disallowed a deduction for
15377		-	losses by paragraphs (b), (c), and (f)(1) of Section 267
15378		-
15379		-
15380		-	of the Internal Revenue Code by virtue of being a related
15381		-	taxpayer, as well as any of its partners. The credit
15382		-	allowed against the tax imposed by subsections (a) and (b)
15383		-	shall be equal to 25% of the unreimbursed eligible
15384		-	remediation costs in excess of $100,000 per site.
15385		-	(ii) A credit allowed under this subsection that is
15386		-	unused in the year the credit is earned may be carried
15387		-	forward to each of the 5 taxable years following the year
15388		-	for which the credit is first earned until it is used. This
15389		-	credit shall be applied first to the earliest year for
15390		-	which there is a liability. If there is a credit under this
15391		-	subsection from more than one tax year that is available
15392		-	to offset a liability, the earliest credit arising under
15393		-	this subsection shall be applied first. A credit allowed
15394		-	under this subsection may be sold to a buyer as part of a
15395		-	sale of all or part of the remediation site for which the
15396		-	credit was granted. The purchaser of a remediation site
15397		-	and the tax credit shall succeed to the unused credit and
15398		-	remaining carry-forward period of the seller. To perfect
15399		-	the transfer, the assignor shall record the transfer in
15400		-	the chain of title for the site and provide written notice
15401		-	to the Director of the Illinois Department of Revenue of
15402		-	the assignor's intent to sell the remediation site and the
15403		-	amount of the tax credit to be transferred as a portion of
15404		-	the sale. In no event may a credit be transferred to any
15405		-	taxpayer if the taxpayer or a related party would not be
15406		-
15407		-
15408		-	eligible under the provisions of subsection (i).
15409		-	(iii) For purposes of this Section, the term "site"
15410		-	shall have the same meaning as under Section 58.2 of the
15411		-	Environmental Protection Act.
15412		-	(o) For each of taxable years during the Compassionate Use
15413		-	of Medical Cannabis Program, a surcharge is imposed on all
15414		-	taxpayers on income arising from the sale or exchange of
15415		-	capital assets, depreciable business property, real property
15416		-	used in the trade or business, and Section 197 intangibles of
15417		-	an organization registrant under the Compassionate Use of
15418		-	Medical Cannabis Program Act. The amount of the surcharge is
15419		-	equal to the amount of federal income tax liability for the
15420		-	taxable year attributable to those sales and exchanges. The
15421		-	surcharge imposed does not apply if:
15422		-	(1) the medical cannabis cultivation center
15423		-	registration, medical cannabis dispensary registration, or
15424		-	the property of a registration is transferred as a result
15425		-	of any of the following:
15426		-	(A) bankruptcy, a receivership, or a debt
15427		-	adjustment initiated by or against the initial
15428		-	registration or the substantial owners of the initial
15429		-	registration;
15430		-	(B) cancellation, revocation, or termination of
15431		-	any registration by the Illinois Department of Public
15432		-	Health;
15433		-	(C) a determination by the Illinois Department of
15434		-
15435		-
15436		-	Public Health that transfer of the registration is in
15437		-	the best interests of Illinois qualifying patients as
15438		-	defined by the Compassionate Use of Medical Cannabis
15439		-	Program Act;
15440		-	(D) the death of an owner of the equity interest in
15441		-	a registrant;
15442		-	(E) the acquisition of a controlling interest in
15443		-	the stock or substantially all of the assets of a
15444		-	publicly traded company;
15445		-	(F) a transfer by a parent company to a wholly
15446		-	owned subsidiary; or
15447		-	(G) the transfer or sale to or by one person to
15448		-	another person where both persons were initial owners
15449		-	of the registration when the registration was issued;
15450		-	or
15451		-	(2) the cannabis cultivation center registration,
15452		-	medical cannabis dispensary registration, or the
15453		-	controlling interest in a registrant's property is
15454		-	transferred in a transaction to lineal descendants in
15455		-	which no gain or loss is recognized or as a result of a
15456		-	transaction in accordance with Section 351 of the Internal
15457		-	Revenue Code in which no gain or loss is recognized.
15458		-	(p) Pass-through entity tax.
15459		-	(1) For taxable years ending on or after December 31,
15460		-	2021 and beginning prior to January 1, 2026, a partnership
15461		-	(other than a publicly traded partnership under Section
15462		-
15463		-
15464		-	7704 of the Internal Revenue Code) or Subchapter S
15465		-	corporation may elect to apply the provisions of this
15466		-	subsection. A separate election shall be made for each
15467		-	taxable year. Such election shall be made at such time,
15468		-	and in such form and manner as prescribed by the
15469		-	Department, and, once made, is irrevocable.
15470		-	(2) Entity-level tax. A partnership or Subchapter S
15471		-	corporation electing to apply the provisions of this
15472		-	subsection shall be subject to a tax for the privilege of
15473		-	earning or receiving income in this State in an amount
15474		-	equal to 4.95% of the taxpayer's net income for the
15475		-	taxable year.
15476		-	(3) Net income defined.
15477		-	(A) In general. For purposes of paragraph (2), the
15478		-	term net income has the same meaning as defined in
15479		-	Section 202 of this Act, except that, for tax years
15480		-	ending on or after December 31, 2023, a deduction
15481		-	shall be allowed in computing base income for
15482		-	distributions to a retired partner to the extent that
15483		-	the partner's distributions are exempt from tax under
15484		-	Section 203(a)(2)(F) of this Act. In addition, the
15485		-	following modifications provisions shall not apply:
15486		-	(i) the standard exemption allowed under
15487		-	Section 204;
15488		-	(ii) the deduction for net losses allowed
15489		-	under Section 207;
15490		-
15491		-
15492		-	(iii) in the case of an S corporation, the
15493		-	modification under Section 203(b)(2)(S); and
15494		-	(iv) in the case of a partnership, the
15495		-	modifications under Section 203(d)(2)(H) and
15496		-	Section 203(d)(2)(I).
15497		-	(B) Special rule for tiered partnerships. If a
15498		-	taxpayer making the election under paragraph (1) is a
15499		-	partner of another taxpayer making the election under
15500		-	paragraph (1), net income shall be computed as
15501		-	provided in subparagraph (A), except that the taxpayer
15502		-	shall subtract its distributive share of the net
15503		-	income of the electing partnership (including its
15504		-	distributive share of the net income of the electing
15505		-	partnership derived as a distributive share from
15506		-	electing partnerships in which it is a partner).
15507		-	(4) Credit for entity level tax. Each partner or
15508		-	shareholder of a taxpayer making the election under this
15509		-	Section shall be allowed a credit against the tax imposed
15510		-	under subsections (a) and (b) of Section 201 of this Act
15511		-	for the taxable year of the partnership or Subchapter S
15512		-	corporation for which an election is in effect ending
15513		-	within or with the taxable year of the partner or
15514		-	shareholder in an amount equal to 4.95% times the partner
15515		-	or shareholder's distributive share of the net income of
15516		-	the electing partnership or Subchapter S corporation, but
15517		-	not to exceed the partner's or shareholder's share of the
15518		-
15519		-
15520		-	tax imposed under paragraph (1) which is actually paid by
15521		-	the partnership or Subchapter S corporation. If the
15522		-	taxpayer is a partnership or Subchapter S corporation that
15523		-	is itself a partner of a partnership making the election
15524		-	under paragraph (1), the credit under this paragraph shall
15525		-	be allowed to the taxpayer's partners or shareholders (or
15526		-	if the partner is a partnership or Subchapter S
15527		-	corporation then its partners or shareholders) in
15528		-	accordance with the determination of income and
15529		-	distributive share of income under Sections 702 and 704
15530		-	and Subchapter S of the Internal Revenue Code. If the
15531		-	amount of the credit allowed under this paragraph exceeds
15532		-	the partner's or shareholder's liability for tax imposed
15533		-	under subsections (a) and (b) of Section 201 of this Act
15534		-	for the taxable year, such excess shall be treated as an
15535		-	overpayment for purposes of Section 909 of this Act.
15536		-	(5) Nonresidents. A nonresident individual who is a
15537		-	partner or shareholder of a partnership or Subchapter S
15538		-	corporation for a taxable year for which an election is in
15539		-	effect under paragraph (1) shall not be required to file
15540		-	an income tax return under this Act for such taxable year
15541		-	if the only source of net income of the individual (or the
15542		-	individual and the individual's spouse in the case of a
15543		-	joint return) is from an entity making the election under
15544		-	paragraph (1) and the credit allowed to the partner or
15545		-	shareholder under paragraph (4) equals or exceeds the
15546		-
15547		-
15548		-	individual's liability for the tax imposed under
15549		-	subsections (a) and (b) of Section 201 of this Act for the
15550		-	taxable year.
15551		-	(6) Liability for tax. Except as provided in this
15552		-	paragraph, a partnership or Subchapter S making the
15553		-	election under paragraph (1) is liable for the
15554		-	entity-level tax imposed under paragraph (2). If the
15555		-	electing partnership or corporation fails to pay the full
15556		-	amount of tax deemed assessed under paragraph (2), the
15557		-	partners or shareholders shall be liable to pay the tax
15558		-	assessed (including penalties and interest). Each partner
15559		-	or shareholder shall be liable for the unpaid assessment
15560		-	based on the ratio of the partner's or shareholder's share
15561		-	of the net income of the partnership over the total net
15562		-	income of the partnership. If the partnership or
15563		-	Subchapter S corporation fails to pay the tax assessed
15564		-	(including penalties and interest) and thereafter an
15565		-	amount of such tax is paid by the partners or
15566		-	shareholders, such amount shall not be collected from the
15567		-	partnership or corporation.
15568		-	(7) Foreign tax. For purposes of the credit allowed
15569		-	under Section 601(b)(3) of this Act, tax paid by a
15570		-	partnership or Subchapter S corporation to another state
15571		-	which, as determined by the Department, is substantially
15572		-	similar to the tax imposed under this subsection, shall be
15573		-	considered tax paid by the partner or shareholder to the
15574		-
15575		-
15576		-	extent that the partner's or shareholder's share of the
15577		-	income of the partnership or Subchapter S corporation
15578		-	allocated and apportioned to such other state bears to the
15579		-	total income of the partnership or Subchapter S
15580		-	corporation allocated or apportioned to such other state.
15581		-	(8) Suspension of withholding. The provisions of
15582		-	Section 709.5 of this Act shall not apply to a partnership
15583		-	or Subchapter S corporation for the taxable year for which
15584		-	an election under paragraph (1) is in effect.
15585		-	(9) Requirement to pay estimated tax. For each taxable
15586		-	year for which an election under paragraph (1) is in
15587		-	effect, a partnership or Subchapter S corporation is
15588		-	required to pay estimated tax for such taxable year under
15589		-	Sections 803 and 804 of this Act if the amount payable as
15590		-	estimated tax can reasonably be expected to exceed $500.
15591		-	(10) The provisions of this subsection shall apply
15592		-	only with respect to taxable years for which the
15593		-	limitation on individual deductions applies under Section
15594		-	164(b)(6) of the Internal Revenue Code.
15595		-	(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
15596		-	101-207, eff. 8-2-19; 101-363, eff. 8-9-19; 102-558, eff.
15597		-	8-20-21; 102-658, eff. 8-27-21.)
15598		-	ARTICLE 995. NON-ACCELERATION
15599		-	Section 995-95. No acceleration or delay. Where this Act
15600		-
15601		-
15602		-	makes changes in a statute that is represented in this Act by
15603		-	text that is not yet or no longer in effect (for example, a
15604		-	Section represented by multiple versions), the use of that
15605		-	text does not accelerate or delay the taking effect of (i) the
15606		-	changes made by this Act or (ii) provisions derived from any
15607		-	other Public Act.
15608		-	ARTICLE 999. EFFECTIVE DATE
15609		-	Section 999-99. Effective date. This Act takes effect upon
15610		-	becoming law, except that Article 20 takes effect on July 1,
15611		-	2023 and Articles 55 and 100 take effect on January 1, 2024.
	31	+	SB1963 Enrolled- 2 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 2 - LRB103 25648 HLH 51997 b
	32	+	SB1963 Enrolled - 2 - LRB103 25648 HLH 51997 b
	33	+	1 under Section 501(c)(3) of the Internal Revenue Code and that
	34	+	2 is organized and operated primarily for the presentation or
	35	+	3 support of arts or cultural programming, activities, or
	36	+	4 services. These organizations include, but are not limited to,
	37	+	5 music and dramatic arts organizations such as symphony
	38	+	6 orchestras and theatrical groups, arts and cultural service
	39	+	7 organizations, local arts councils, visual arts organizations,
	40	+	8 and media arts organizations. On and after July 1, 2001 (the
	41	+	9 effective date of Public Act 92-35), however, an entity
	42	+	10 otherwise eligible for this exemption shall not make tax-free
	43	+	11 purchases unless it has an active identification number issued
	44	+	12 by the Department.
	45	+	13 (4) Personal property purchased by a governmental body, by
	46	+	14 a corporation, society, association, foundation, or
	47	+	15 institution organized and operated exclusively for charitable,
	48	+	16 religious, or educational purposes, or by a not-for-profit
	49	+	17 corporation, society, association, foundation, institution, or
	50	+	18 organization that has no compensated officers or employees and
	51	+	19 that is organized and operated primarily for the recreation of
	52	+	20 persons 55 years of age or older. A limited liability company
	53	+	21 may qualify for the exemption under this paragraph only if the
	54	+	22 limited liability company is organized and operated
	55	+	23 exclusively for educational purposes. On and after July 1,
	56	+	24 1987, however, no entity otherwise eligible for this exemption
	57	+	25 shall make tax-free purchases unless it has an active
	58	+	26 exemption identification number issued by the Department.
	59	+
	60	+
	61	+
	62	+
	63	+
	64	+	SB1963 Enrolled - 2 - LRB103 25648 HLH 51997 b
	65	+
	66	+
	67	+	SB1963 Enrolled- 3 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 3 - LRB103 25648 HLH 51997 b
	68	+	SB1963 Enrolled - 3 - LRB103 25648 HLH 51997 b
	69	+	1 (5) Until July 1, 2003, a passenger car that is a
	70	+	2 replacement vehicle to the extent that the purchase price of
	71	+	3 the car is subject to the Replacement Vehicle Tax.
	72	+	4 (6) Until July 1, 2003 and beginning again on September 1,
	73	+	5 2004 through August 30, 2014, graphic arts machinery and
	74	+	6 equipment, including repair and replacement parts, both new
	75	+	7 and used, and including that manufactured on special order,
	76	+	8 certified by the purchaser to be used primarily for graphic
	77	+	9 arts production, and including machinery and equipment
	78	+	10 purchased for lease. Equipment includes chemicals or chemicals
	79	+	11 acting as catalysts but only if the chemicals or chemicals
	80	+	12 acting as catalysts effect a direct and immediate change upon
	81	+	13 a graphic arts product. Beginning on July 1, 2017, graphic
	82	+	14 arts machinery and equipment is included in the manufacturing
	83	+	15 and assembling machinery and equipment exemption under
	84	+	16 paragraph (18).
	85	+	17 (7) Farm chemicals.
	86	+	18 (8) Legal tender, currency, medallions, or gold or silver
	87	+	19 coinage issued by the State of Illinois, the government of the
	88	+	20 United States of America, or the government of any foreign
	89	+	21 country, and bullion.
	90	+	22 (9) Personal property purchased from a teacher-sponsored
	91	+	23 student organization affiliated with an elementary or
	92	+	24 secondary school located in Illinois.
	93	+	25 (10) A motor vehicle that is used for automobile renting,
	94	+	26 as defined in the Automobile Renting Occupation and Use Tax
	95	+
	96	+
	97	+
	98	+
	99	+
	100	+	SB1963 Enrolled - 3 - LRB103 25648 HLH 51997 b
	101	+
	102	+
	103	+	SB1963 Enrolled- 4 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 4 - LRB103 25648 HLH 51997 b
	104	+	SB1963 Enrolled - 4 - LRB103 25648 HLH 51997 b
	105	+	1 Act.
	106	+	2 (11) Farm machinery and equipment, both new and used,
	107	+	3 including that manufactured on special order, certified by the
	108	+	4 purchaser to be used primarily for production agriculture or
	109	+	5 State or federal agricultural programs, including individual
	110	+	6 replacement parts for the machinery and equipment, including
	111	+	7 machinery and equipment purchased for lease, and including
	112	+	8 implements of husbandry defined in Section 1-130 of the
	113	+	9 Illinois Vehicle Code, farm machinery and agricultural
	114	+	10 chemical and fertilizer spreaders, and nurse wagons required
	115	+	11 to be registered under Section 3-809 of the Illinois Vehicle
	116	+	12 Code, but excluding other motor vehicles required to be
	117	+	13 registered under the Illinois Vehicle Code. Horticultural
	118	+	14 polyhouses or hoop houses used for propagating, growing, or
	119	+	15 overwintering plants shall be considered farm machinery and
	120	+	16 equipment under this item (11). Agricultural chemical tender
	121	+	17 tanks and dry boxes shall include units sold separately from a
	122	+	18 motor vehicle required to be licensed and units sold mounted
	123	+	19 on a motor vehicle required to be licensed if the selling price
	124	+	20 of the tender is separately stated.
	125	+	21 Farm machinery and equipment shall include precision
	126	+	22 farming equipment that is installed or purchased to be
	127	+	23 installed on farm machinery and equipment including, but not
	128	+	24 limited to, tractors, harvesters, sprayers, planters, seeders,
	129	+	25 or spreaders. Precision farming equipment includes, but is not
	130	+	26 limited to, soil testing sensors, computers, monitors,
	131	+
	132	+
	133	+
	134	+
	135	+
	136	+	SB1963 Enrolled - 4 - LRB103 25648 HLH 51997 b
	137	+
	138	+
	139	+	SB1963 Enrolled- 5 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 5 - LRB103 25648 HLH 51997 b
	140	+	SB1963 Enrolled - 5 - LRB103 25648 HLH 51997 b
	141	+	1 software, global positioning and mapping systems, and other
	142	+	2 such equipment.
	143	+	3 Farm machinery and equipment also includes computers,
	144	+	4 sensors, software, and related equipment used primarily in the
	145	+	5 computer-assisted operation of production agriculture
	146	+	6 facilities, equipment, and activities such as, but not limited
	147	+	7 to, the collection, monitoring, and correlation of animal and
	148	+	8 crop data for the purpose of formulating animal diets and
	149	+	9 agricultural chemicals. This item (11) is exempt from the
	150	+	10 provisions of Section 3-90.
	151	+	11 (12) Until June 30, 2013, fuel and petroleum products sold
	152	+	12 to or used by an air common carrier, certified by the carrier
	153	+	13 to be used for consumption, shipment, or storage in the
	154	+	14 conduct of its business as an air common carrier, for a flight
	155	+	15 destined for or returning from a location or locations outside
	156	+	16 the United States without regard to previous or subsequent
	157	+	17 domestic stopovers.
	158	+	18 Beginning July 1, 2013, fuel and petroleum products sold
	159	+	19 to or used by an air carrier, certified by the carrier to be
	160	+	20 used for consumption, shipment, or storage in the conduct of
	161	+	21 its business as an air common carrier, for a flight that (i) is
	162	+	22 engaged in foreign trade or is engaged in trade between the
	163	+	23 United States and any of its possessions and (ii) transports
	164	+	24 at least one individual or package for hire from the city of
	165	+	25 origination to the city of final destination on the same
	166	+	26 aircraft, without regard to a change in the flight number of
	167	+
	168	+
	169	+
	170	+
	171	+
	172	+	SB1963 Enrolled - 5 - LRB103 25648 HLH 51997 b
	173	+
	174	+
	175	+	SB1963 Enrolled- 6 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 6 - LRB103 25648 HLH 51997 b
	176	+	SB1963 Enrolled - 6 - LRB103 25648 HLH 51997 b
	177	+	1 that aircraft.
	178	+	2 (13) Proceeds of mandatory service charges separately
	179	+	3 stated on customers' bills for the purchase and consumption of
	180	+	4 food and beverages purchased at retail from a retailer, to the
	181	+	5 extent that the proceeds of the service charge are in fact
	182	+	6 turned over as tips or as a substitute for tips to the
	183	+	7 employees who participate directly in preparing, serving,
	184	+	8 hosting or cleaning up the food or beverage function with
	185	+	9 respect to which the service charge is imposed.
	186	+	10 (14) Until July 1, 2003, oil field exploration, drilling,
	187	+	11 and production equipment, including (i) rigs and parts of
	188	+	12 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
	189	+	13 pipe and tubular goods, including casing and drill strings,
	190	+	14 (iii) pumps and pump-jack units, (iv) storage tanks and flow
	191	+	15 lines, (v) any individual replacement part for oil field
	192	+	16 exploration, drilling, and production equipment, and (vi)
	193	+	17 machinery and equipment purchased for lease; but excluding
	194	+	18 motor vehicles required to be registered under the Illinois
	195	+	19 Vehicle Code.
	196	+	20 (15) Photoprocessing machinery and equipment, including
	197	+	21 repair and replacement parts, both new and used, including
	198	+	22 that manufactured on special order, certified by the purchaser
	199	+	23 to be used primarily for photoprocessing, and including
	200	+	24 photoprocessing machinery and equipment purchased for lease.
	201	+	25 (16) Until July 1, 2028, coal and aggregate exploration,
	202	+	26 mining, off-highway hauling, processing, maintenance, and
	203	+
	204	+
	205	+
	206	+
	207	+
	208	+	SB1963 Enrolled - 6 - LRB103 25648 HLH 51997 b
	209	+
	210	+
	211	+	SB1963 Enrolled- 7 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 7 - LRB103 25648 HLH 51997 b
	212	+	SB1963 Enrolled - 7 - LRB103 25648 HLH 51997 b
	213	+	1 reclamation equipment, including replacement parts and
	214	+	2 equipment, and including equipment purchased for lease, but
	215	+	3 excluding motor vehicles required to be registered under the
	216	+	4 Illinois Vehicle Code. The changes made to this Section by
	217	+	5 Public Act 97-767 apply on and after July 1, 2003, but no claim
	218	+	6 for credit or refund is allowed on or after August 16, 2013
	219	+	7 (the effective date of Public Act 98-456) for such taxes paid
	220	+	8 during the period beginning July 1, 2003 and ending on August
	221	+	9 16, 2013 (the effective date of Public Act 98-456).
	222	+	10 (17) Until July 1, 2003, distillation machinery and
	223	+	11 equipment, sold as a unit or kit, assembled or installed by the
	224	+	12 retailer, certified by the user to be used only for the
	225	+	13 production of ethyl alcohol that will be used for consumption
	226	+	14 as motor fuel or as a component of motor fuel for the personal
	227	+	15 use of the user, and not subject to sale or resale.
	228	+	16 (18) Manufacturing and assembling machinery and equipment
	229	+	17 used primarily in the process of manufacturing or assembling
	230	+	18 tangible personal property for wholesale or retail sale or
	231	+	19 lease, whether that sale or lease is made directly by the
	232	+	20 manufacturer or by some other person, whether the materials
	233	+	21 used in the process are owned by the manufacturer or some other
	234	+	22 person, or whether that sale or lease is made apart from or as
	235	+	23 an incident to the seller's engaging in the service occupation
	236	+	24 of producing machines, tools, dies, jigs, patterns, gauges, or
	237	+	25 other similar items of no commercial value on special order
	238	+	26 for a particular purchaser. The exemption provided by this
	239	+
	240	+
	241	+
	242	+
	243	+
	244	+	SB1963 Enrolled - 7 - LRB103 25648 HLH 51997 b
	245	+
	246	+
	247	+	SB1963 Enrolled- 8 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 8 - LRB103 25648 HLH 51997 b
	248	+	SB1963 Enrolled - 8 - LRB103 25648 HLH 51997 b
	249	+	1 paragraph (18) includes production related tangible personal
	250	+	2 property, as defined in Section 3-50, purchased on or after
	251	+	3 July 1, 2019. The exemption provided by this paragraph (18)
	252	+	4 does not include machinery and equipment used in (i) the
	253	+	5 generation of electricity for wholesale or retail sale; (ii)
	254	+	6 the generation or treatment of natural or artificial gas for
	255	+	7 wholesale or retail sale that is delivered to customers
	256	+	8 through pipes, pipelines, or mains; or (iii) the treatment of
	257	+	9 water for wholesale or retail sale that is delivered to
	258	+	10 customers through pipes, pipelines, or mains. The provisions
	259	+	11 of Public Act 98-583 are declaratory of existing law as to the
	260	+	12 meaning and scope of this exemption. Beginning on July 1,
	261	+	13 2017, the exemption provided by this paragraph (18) includes,
	262	+	14 but is not limited to, graphic arts machinery and equipment,
	263	+	15 as defined in paragraph (6) of this Section.
	264	+	16 (19) Personal property delivered to a purchaser or
	265	+	17 purchaser's donee inside Illinois when the purchase order for
	266	+	18 that personal property was received by a florist located
	267	+	19 outside Illinois who has a florist located inside Illinois
	268	+	20 deliver the personal property.
	269	+	21 (20) Semen used for artificial insemination of livestock
	270	+	22 for direct agricultural production.
	271	+	23 (21) Horses, or interests in horses, registered with and
	272	+	24 meeting the requirements of any of the Arabian Horse Club
	273	+	25 Registry of America, Appaloosa Horse Club, American Quarter
	274	+	26 Horse Association, United States Trotting Association, or
	275	+
	276	+
	277	+
	278	+
	279	+
	280	+	SB1963 Enrolled - 8 - LRB103 25648 HLH 51997 b
	281	+
	282	+
	283	+	SB1963 Enrolled- 9 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 9 - LRB103 25648 HLH 51997 b
	284	+	SB1963 Enrolled - 9 - LRB103 25648 HLH 51997 b
	285	+	1 Jockey Club, as appropriate, used for purposes of breeding or
	286	+	2 racing for prizes. This item (21) is exempt from the
	287	+	3 provisions of Section 3-90, and the exemption provided for
	288	+	4 under this item (21) applies for all periods beginning May 30,
	289	+	5 1995, but no claim for credit or refund is allowed on or after
	290	+	6 January 1, 2008 for such taxes paid during the period
	291	+	7 beginning May 30, 2000 and ending on January 1, 2008.
	292	+	8 (22) Computers and communications equipment utilized for
	293	+	9 any hospital purpose and equipment used in the diagnosis,
	294	+	10 analysis, or treatment of hospital patients purchased by a
	295	+	11 lessor who leases the equipment, under a lease of one year or
	296	+	12 longer executed or in effect at the time the lessor would
	297	+	13 otherwise be subject to the tax imposed by this Act, to a
	298	+	14 hospital that has been issued an active tax exemption
	299	+	15 identification number by the Department under Section 1g of
	300	+	16 the Retailers' Occupation Tax Act. If the equipment is leased
	301	+	17 in a manner that does not qualify for this exemption or is used
	302	+	18 in any other non-exempt manner, the lessor shall be liable for
	303	+	19 the tax imposed under this Act or the Service Use Tax Act, as
	304	+	20 the case may be, based on the fair market value of the property
	305	+	21 at the time the non-qualifying use occurs. No lessor shall
	306	+	22 collect or attempt to collect an amount (however designated)
	307	+	23 that purports to reimburse that lessor for the tax imposed by
	308	+	24 this Act or the Service Use Tax Act, as the case may be, if the
	309	+	25 tax has not been paid by the lessor. If a lessor improperly
	310	+	26 collects any such amount from the lessee, the lessee shall
	311	+
	312	+
	313	+
	314	+
	315	+
	316	+	SB1963 Enrolled - 9 - LRB103 25648 HLH 51997 b
	317	+
	318	+
	319	+	SB1963 Enrolled- 10 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 10 - LRB103 25648 HLH 51997 b
	320	+	SB1963 Enrolled - 10 - LRB103 25648 HLH 51997 b
	321	+	1 have a legal right to claim a refund of that amount from the
	322	+	2 lessor. If, however, that amount is not refunded to the lessee
	323	+	3 for any reason, the lessor is liable to pay that amount to the
	324	+	4 Department.
	325	+	5 (23) Personal property purchased by a lessor who leases
	326	+	6 the property, under a lease of one year or longer executed or
	327	+	7 in effect at the time the lessor would otherwise be subject to
	328	+	8 the tax imposed by this Act, to a governmental body that has
	329	+	9 been issued an active sales tax exemption identification
	330	+	10 number by the Department under Section 1g of the Retailers'
	331	+	11 Occupation Tax Act. If the property is leased in a manner that
	332	+	12 does not qualify for this exemption or used in any other
	333	+	13 non-exempt manner, the lessor shall be liable for the tax
	334	+	14 imposed under this Act or the Service Use Tax Act, as the case
	335	+	15 may be, based on the fair market value of the property at the
	336	+	16 time the non-qualifying use occurs. No lessor shall collect or
	337	+	17 attempt to collect an amount (however designated) that
	338	+	18 purports to reimburse that lessor for the tax imposed by this
	339	+	19 Act or the Service Use Tax Act, as the case may be, if the tax
	340	+	20 has not been paid by the lessor. If a lessor improperly
	341	+	21 collects any such amount from the lessee, the lessee shall
	342	+	22 have a legal right to claim a refund of that amount from the
	343	+	23 lessor. If, however, that amount is not refunded to the lessee
	344	+	24 for any reason, the lessor is liable to pay that amount to the
	345	+	25 Department.
	346	+	26 (24) Beginning with taxable years ending on or after
	347	+
	348	+
	349	+
	350	+
	351	+
	352	+	SB1963 Enrolled - 10 - LRB103 25648 HLH 51997 b
	353	+
	354	+
	355	+	SB1963 Enrolled- 11 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 11 - LRB103 25648 HLH 51997 b
	356	+	SB1963 Enrolled - 11 - LRB103 25648 HLH 51997 b
	357	+	1 December 31, 1995 and ending with taxable years ending on or
	358	+	2 before December 31, 2004, personal property that is donated
	359	+	3 for disaster relief to be used in a State or federally declared
	360	+	4 disaster area in Illinois or bordering Illinois by a
	361	+	5 manufacturer or retailer that is registered in this State to a
	362	+	6 corporation, society, association, foundation, or institution
	363	+	7 that has been issued a sales tax exemption identification
	364	+	8 number by the Department that assists victims of the disaster
	365	+	9 who reside within the declared disaster area.
	366	+	10 (25) Beginning with taxable years ending on or after
	367	+	11 December 31, 1995 and ending with taxable years ending on or
	368	+	12 before December 31, 2004, personal property that is used in
	369	+	13 the performance of infrastructure repairs in this State,
	370	+	14 including but not limited to municipal roads and streets,
	371	+	15 access roads, bridges, sidewalks, waste disposal systems,
	372	+	16 water and sewer line extensions, water distribution and
	373	+	17 purification facilities, storm water drainage and retention
	374	+	18 facilities, and sewage treatment facilities, resulting from a
	375	+	19 State or federally declared disaster in Illinois or bordering
	376	+	20 Illinois when such repairs are initiated on facilities located
	377	+	21 in the declared disaster area within 6 months after the
	378	+	22 disaster.
	379	+	23 (26) Beginning July 1, 1999, game or game birds purchased
	380	+	24 at a "game breeding and hunting preserve area" as that term is
	381	+	25 used in the Wildlife Code. This paragraph is exempt from the
	382	+	26 provisions of Section 3-90.
	383	+
	384	+
	385	+
	386	+
	387	+
	388	+	SB1963 Enrolled - 11 - LRB103 25648 HLH 51997 b
	389	+
	390	+
	391	+	SB1963 Enrolled- 12 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 12 - LRB103 25648 HLH 51997 b
	392	+	SB1963 Enrolled - 12 - LRB103 25648 HLH 51997 b
	393	+	1 (27) A motor vehicle, as that term is defined in Section
	394	+	2 1-146 of the Illinois Vehicle Code, that is donated to a
	395	+	3 corporation, limited liability company, society, association,
	396	+	4 foundation, or institution that is determined by the
	397	+	5 Department to be organized and operated exclusively for
	398	+	6 educational purposes. For purposes of this exemption, "a
	399	+	7 corporation, limited liability company, society, association,
	400	+	8 foundation, or institution organized and operated exclusively
	401	+	9 for educational purposes" means all tax-supported public
	402	+	10 schools, private schools that offer systematic instruction in
	403	+	11 useful branches of learning by methods common to public
	404	+	12 schools and that compare favorably in their scope and
	405	+	13 intensity with the course of study presented in tax-supported
	406	+	14 schools, and vocational or technical schools or institutes
	407	+	15 organized and operated exclusively to provide a course of
	408	+	16 study of not less than 6 weeks duration and designed to prepare
	409	+	17 individuals to follow a trade or to pursue a manual,
	410	+	18 technical, mechanical, industrial, business, or commercial
	411	+	19 occupation.
	412	+	20 (28) Beginning January 1, 2000, personal property,
	413	+	21 including food, purchased through fundraising events for the
	414	+	22 benefit of a public or private elementary or secondary school,
	415	+	23 a group of those schools, or one or more school districts if
	416	+	24 the events are sponsored by an entity recognized by the school
	417	+	25 district that consists primarily of volunteers and includes
	418	+	26 parents and teachers of the school children. This paragraph
	419	+
	420	+
	421	+
	422	+
	423	+
	424	+	SB1963 Enrolled - 12 - LRB103 25648 HLH 51997 b
	425	+
	426	+
	427	+	SB1963 Enrolled- 13 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 13 - LRB103 25648 HLH 51997 b
	428	+	SB1963 Enrolled - 13 - LRB103 25648 HLH 51997 b
	429	+	1 does not apply to fundraising events (i) for the benefit of
	430	+	2 private home instruction or (ii) for which the fundraising
	431	+	3 entity purchases the personal property sold at the events from
	432	+	4 another individual or entity that sold the property for the
	433	+	5 purpose of resale by the fundraising entity and that profits
	434	+	6 from the sale to the fundraising entity. This paragraph is
	435	+	7 exempt from the provisions of Section 3-90.
	436	+	8 (29) Beginning January 1, 2000 and through December 31,
	437	+	9 2001, new or used automatic vending machines that prepare and
	438	+	10 serve hot food and beverages, including coffee, soup, and
	439	+	11 other items, and replacement parts for these machines.
	440	+	12 Beginning January 1, 2002 and through June 30, 2003, machines
	441	+	13 and parts for machines used in commercial, coin-operated
	442	+	14 amusement and vending business if a use or occupation tax is
	443	+	15 paid on the gross receipts derived from the use of the
	444	+	16 commercial, coin-operated amusement and vending machines. This
	445	+	17 paragraph is exempt from the provisions of Section 3-90.
	446	+	18 (30) Beginning January 1, 2001 and through June 30, 2016,
	447	+	19 food for human consumption that is to be consumed off the
	448	+	20 premises where it is sold (other than alcoholic beverages,
	449	+	21 soft drinks, and food that has been prepared for immediate
	450	+	22 consumption) and prescription and nonprescription medicines,
	451	+	23 drugs, medical appliances, and insulin, urine testing
	452	+	24 materials, syringes, and needles used by diabetics, for human
	453	+	25 use, when purchased for use by a person receiving medical
	454	+	26 assistance under Article V of the Illinois Public Aid Code who
	455	+
	456	+
	457	+
	458	+
	459	+
	460	+	SB1963 Enrolled - 13 - LRB103 25648 HLH 51997 b
	461	+
	462	+
	463	+	SB1963 Enrolled- 14 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 14 - LRB103 25648 HLH 51997 b
	464	+	SB1963 Enrolled - 14 - LRB103 25648 HLH 51997 b
	465	+	1 resides in a licensed long-term care facility, as defined in
	466	+	2 the Nursing Home Care Act, or in a licensed facility as defined
	467	+	3 in the ID/DD Community Care Act, the MC/DD Act, or the
	468	+	4 Specialized Mental Health Rehabilitation Act of 2013.
	469	+	5 (31) Beginning on August 2, 2001 (the effective date of
	470	+	6 Public Act 92-227), computers and communications equipment
	471	+	7 utilized for any hospital purpose and equipment used in the
	472	+	8 diagnosis, analysis, or treatment of hospital patients
	473	+	9 purchased by a lessor who leases the equipment, under a lease
	474	+	10 of one year or longer executed or in effect at the time the
	475	+	11 lessor would otherwise be subject to the tax imposed by this
	476	+	12 Act, to a hospital that has been issued an active tax exemption
	477	+	13 identification number by the Department under Section 1g of
	478	+	14 the Retailers' Occupation Tax Act. If the equipment is leased
	479	+	15 in a manner that does not qualify for this exemption or is used
	480	+	16 in any other nonexempt manner, the lessor shall be liable for
	481	+	17 the tax imposed under this Act or the Service Use Tax Act, as
	482	+	18 the case may be, based on the fair market value of the property
	483	+	19 at the time the nonqualifying use occurs. No lessor shall
	484	+	20 collect or attempt to collect an amount (however designated)
	485	+	21 that purports to reimburse that lessor for the tax imposed by
	486	+	22 this Act or the Service Use Tax Act, as the case may be, if the
	487	+	23 tax has not been paid by the lessor. If a lessor improperly
	488	+	24 collects any such amount from the lessee, the lessee shall
	489	+	25 have a legal right to claim a refund of that amount from the
	490	+	26 lessor. If, however, that amount is not refunded to the lessee
	491	+
	492	+
	493	+
	494	+
	495	+
	496	+	SB1963 Enrolled - 14 - LRB103 25648 HLH 51997 b
	497	+
	498	+
	499	+	SB1963 Enrolled- 15 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 15 - LRB103 25648 HLH 51997 b
	500	+	SB1963 Enrolled - 15 - LRB103 25648 HLH 51997 b
	501	+	1 for any reason, the lessor is liable to pay that amount to the
	502	+	2 Department. This paragraph is exempt from the provisions of
	503	+	3 Section 3-90.
	504	+	4 (32) Beginning on August 2, 2001 (the effective date of
	505	+	5 Public Act 92-227), personal property purchased by a lessor
	506	+	6 who leases the property, under a lease of one year or longer
	507	+	7 executed or in effect at the time the lessor would otherwise be
	508	+	8 subject to the tax imposed by this Act, to a governmental body
	509	+	9 that has been issued an active sales tax exemption
	510	+	10 identification number by the Department under Section 1g of
	511	+	11 the Retailers' Occupation Tax Act. If the property is leased
	512	+	12 in a manner that does not qualify for this exemption or used in
	513	+	13 any other nonexempt manner, the lessor shall be liable for the
	514	+	14 tax imposed under this Act or the Service Use Tax Act, as the
	515	+	15 case may be, based on the fair market value of the property at
	516	+	16 the time the nonqualifying use occurs. No lessor shall collect
	517	+	17 or attempt to collect an amount (however designated) that
	518	+	18 purports to reimburse that lessor for the tax imposed by this
	519	+	19 Act or the Service Use Tax Act, as the case may be, if the tax
	520	+	20 has not been paid by the lessor. If a lessor improperly
	521	+	21 collects any such amount from the lessee, the lessee shall
	522	+	22 have a legal right to claim a refund of that amount from the
	523	+	23 lessor. If, however, that amount is not refunded to the lessee
	524	+	24 for any reason, the lessor is liable to pay that amount to the
	525	+	25 Department. This paragraph is exempt from the provisions of
	526	+	26 Section 3-90.
	527	+
	528	+
	529	+
	530	+
	531	+
	532	+	SB1963 Enrolled - 15 - LRB103 25648 HLH 51997 b
	533	+
	534	+
	535	+	SB1963 Enrolled- 16 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 16 - LRB103 25648 HLH 51997 b
	536	+	SB1963 Enrolled - 16 - LRB103 25648 HLH 51997 b
	537	+	1 (33) On and after July 1, 2003 and through June 30, 2004,
	538	+	2 the use in this State of motor vehicles of the second division
	539	+	3 with a gross vehicle weight in excess of 8,000 pounds and that
	540	+	4 are subject to the commercial distribution fee imposed under
	541	+	5 Section 3-815.1 of the Illinois Vehicle Code. Beginning on
	542	+	6 July 1, 2004 and through June 30, 2005, the use in this State
	543	+	7 of motor vehicles of the second division: (i) with a gross
	544	+	8 vehicle weight rating in excess of 8,000 pounds; (ii) that are
	545	+	9 subject to the commercial distribution fee imposed under
	546	+	10 Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
	547	+	11 are primarily used for commercial purposes. Through June 30,
	548	+	12 2005, this exemption applies to repair and replacement parts
	549	+	13 added after the initial purchase of such a motor vehicle if
	550	+	14 that motor vehicle is used in a manner that would qualify for
	551	+	15 the rolling stock exemption otherwise provided for in this
	552	+	16 Act. For purposes of this paragraph, the term "used for
	553	+	17 commercial purposes" means the transportation of persons or
	554	+	18 property in furtherance of any commercial or industrial
	555	+	19 enterprise, whether for-hire or not.
	556	+	20 (34) Beginning January 1, 2008, tangible personal property
	557	+	21 used in the construction or maintenance of a community water
	558	+	22 supply, as defined under Section 3.145 of the Environmental
	559	+	23 Protection Act, that is operated by a not-for-profit
	560	+	24 corporation that holds a valid water supply permit issued
	561	+	25 under Title IV of the Environmental Protection Act. This
	562	+	26 paragraph is exempt from the provisions of Section 3-90.
	563	+
	564	+
	565	+
	566	+
	567	+
	568	+	SB1963 Enrolled - 16 - LRB103 25648 HLH 51997 b
	569	+
	570	+
	571	+	SB1963 Enrolled- 17 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 17 - LRB103 25648 HLH 51997 b
	572	+	SB1963 Enrolled - 17 - LRB103 25648 HLH 51997 b
	573	+	1 (35) Beginning January 1, 2010 and continuing through
	574	+	2 December 31, 2029 December 31, 2024, materials, parts,
	575	+	3 equipment, components, and furnishings incorporated into or
	576	+	4 upon an aircraft as part of the modification, refurbishment,
	577	+	5 completion, replacement, repair, or maintenance of the
	578	+	6 aircraft. This exemption includes consumable supplies used in
	579	+	7 the modification, refurbishment, completion, replacement,
	580	+	8 repair, and maintenance of aircraft. However, until January 1,
	581	+	9 2024, this exemption , but excludes any materials, parts,
	582	+	10 equipment, components, and consumable supplies used in the
	583	+	11 modification, replacement, repair, and maintenance of aircraft
	584	+	12 engines or power plants, whether such engines or power plants
	585	+	13 are installed or uninstalled upon any such aircraft.
	586	+	14 "Consumable supplies" include, but are not limited to,
	587	+	15 adhesive, tape, sandpaper, general purpose lubricants,
	588	+	16 cleaning solution, latex gloves, and protective films.
	589	+	17 Beginning January 1, 2010 and continuing through December
	590	+	18 31, 2023, this This exemption applies only to the use of
	591	+	19 qualifying tangible personal property by persons who modify,
	592	+	20 refurbish, complete, repair, replace, or maintain aircraft and
	593	+	21 who (i) hold an Air Agency Certificate and are empowered to
	594	+	22 operate an approved repair station by the Federal Aviation
	595	+	23 Administration, (ii) have a Class IV Rating, and (iii) conduct
	596	+	24 operations in accordance with Part 145 of the Federal Aviation
	597	+	25 Regulations. From January 1, 2024 through December 31, 2029,
	598	+	26 this exemption applies only to the use of qualifying tangible
	599	+
	600	+
	601	+
	602	+
	603	+
	604	+	SB1963 Enrolled - 17 - LRB103 25648 HLH 51997 b
	605	+
	606	+
	607	+	SB1963 Enrolled- 18 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 18 - LRB103 25648 HLH 51997 b
	608	+	SB1963 Enrolled - 18 - LRB103 25648 HLH 51997 b
	609	+	1 personal property by: (A) persons who modify, refurbish,
	610	+	2 complete, repair, replace, or maintain aircraft and who (i)
	611	+	3 hold an Air Agency Certificate and are empowered to operate an
	612	+	4 approved repair station by the Federal Aviation
	613	+	5 Administration, (ii) have a Class IV Rating, and (iii) conduct
	614	+	6 operations in accordance with Part 145 of the Federal Aviation
	615	+	7 Regulations; and (B) persons who engage in the modification,
	616	+	8 replacement, repair, and maintenance of aircraft engines or
	617	+	9 power plants without regard to whether or not those persons
	618	+	10 meet the qualifications of item (A).
	619	+	11 The exemption does not include aircraft operated by a
	620	+	12 commercial air carrier providing scheduled passenger air
	621	+	13 service pursuant to authority issued under Part 121 or Part
	622	+	14 129 of the Federal Aviation Regulations. The changes made to
	623	+	15 this paragraph (35) by Public Act 98-534 are declarative of
	624	+	16 existing law. It is the intent of the General Assembly that the
	625	+	17 exemption under this paragraph (35) applies continuously from
	626	+	18 January 1, 2010 through December 31, 2024; however, no claim
	627	+	19 for credit or refund is allowed for taxes paid as a result of
	628	+	20 the disallowance of this exemption on or after January 1, 2015
	629	+	21 and prior to February 5, 2020 (the effective date of Public Act
	630	+	22 101-629) this amendatory Act of the 101st General Assembly.
	631	+	23 (36) Tangible personal property purchased by a
	632	+	24 public-facilities corporation, as described in Section
	633	+	25 11-65-10 of the Illinois Municipal Code, for purposes of
	634	+	26 constructing or furnishing a municipal convention hall, but
	635	+
	636	+
	637	+
	638	+
	639	+
	640	+	SB1963 Enrolled - 18 - LRB103 25648 HLH 51997 b
	641	+
	642	+
	643	+	SB1963 Enrolled- 19 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 19 - LRB103 25648 HLH 51997 b
	644	+	SB1963 Enrolled - 19 - LRB103 25648 HLH 51997 b
	645	+	1 only if the legal title to the municipal convention hall is
	646	+	2 transferred to the municipality without any further
	647	+	3 consideration by or on behalf of the municipality at the time
	648	+	4 of the completion of the municipal convention hall or upon the
	649	+	5 retirement or redemption of any bonds or other debt
	650	+	6 instruments issued by the public-facilities corporation in
	651	+	7 connection with the development of the municipal convention
	652	+	8 hall. This exemption includes existing public-facilities
	653	+	9 corporations as provided in Section 11-65-25 of the Illinois
	654	+	10 Municipal Code. This paragraph is exempt from the provisions
	655	+	11 of Section 3-90.
	656	+	12 (37) Beginning January 1, 2017 and through December 31,
	657	+	13 2026, menstrual pads, tampons, and menstrual cups.
	658	+	14 (38) Merchandise that is subject to the Rental Purchase
	659	+	15 Agreement Occupation and Use Tax. The purchaser must certify
	660	+	16 that the item is purchased to be rented subject to a rental
	661	+	17 purchase agreement, as defined in the Rental Purchase
	662	+	18 Agreement Act, and provide proof of registration under the
	663	+	19 Rental Purchase Agreement Occupation and Use Tax Act. This
	664	+	20 paragraph is exempt from the provisions of Section 3-90.
	665	+	21 (39) Tangible personal property purchased by a purchaser
	666	+	22 who is exempt from the tax imposed by this Act by operation of
	667	+	23 federal law. This paragraph is exempt from the provisions of
	668	+	24 Section 3-90.
	669	+	25 (40) Qualified tangible personal property used in the
	670	+	26 construction or operation of a data center that has been
	671	+
	672	+
	673	+
	674	+
	675	+
	676	+	SB1963 Enrolled - 19 - LRB103 25648 HLH 51997 b
	677	+
	678	+
	679	+	SB1963 Enrolled- 20 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 20 - LRB103 25648 HLH 51997 b
	680	+	SB1963 Enrolled - 20 - LRB103 25648 HLH 51997 b
	681	+	1 granted a certificate of exemption by the Department of
	682	+	2 Commerce and Economic Opportunity, whether that tangible
	683	+	3 personal property is purchased by the owner, operator, or
	684	+	4 tenant of the data center or by a contractor or subcontractor
	685	+	5 of the owner, operator, or tenant. Data centers that would
	686	+	6 have qualified for a certificate of exemption prior to January
	687	+	7 1, 2020 had Public Act 101-31 been in effect may apply for and
	688	+	8 obtain an exemption for subsequent purchases of computer
	689	+	9 equipment or enabling software purchased or leased to upgrade,
	690	+	10 supplement, or replace computer equipment or enabling software
	691	+	11 purchased or leased in the original investment that would have
	692	+	12 qualified.
	693	+	13 The Department of Commerce and Economic Opportunity shall
	694	+	14 grant a certificate of exemption under this item (40) to
	695	+	15 qualified data centers as defined by Section 605-1025 of the
	696	+	16 Department of Commerce and Economic Opportunity Law of the
	697	+	17 Civil Administrative Code of Illinois.
	698	+	18 For the purposes of this item (40):
	699	+	19 "Data center" means a building or a series of
	700	+	20 buildings rehabilitated or constructed to house working
	701	+	21 servers in one physical location or multiple sites within
	702	+	22 the State of Illinois.
	703	+	23 "Qualified tangible personal property" means:
	704	+	24 electrical systems and equipment; climate control and
	705	+	25 chilling equipment and systems; mechanical systems and
	706	+	26 equipment; monitoring and secure systems; emergency
	707	+
	708	+
	709	+
	710	+
	711	+
	712	+	SB1963 Enrolled - 20 - LRB103 25648 HLH 51997 b
	713	+
	714	+
	715	+	SB1963 Enrolled- 21 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 21 - LRB103 25648 HLH 51997 b
	716	+	SB1963 Enrolled - 21 - LRB103 25648 HLH 51997 b
	717	+	1 generators; hardware; computers; servers; data storage
	718	+	2 devices; network connectivity equipment; racks; cabinets;
	719	+	3 telecommunications cabling infrastructure; raised floor
	720	+	4 systems; peripheral components or systems; software;
	721	+	5 mechanical, electrical, or plumbing systems; battery
	722	+	6 systems; cooling systems and towers; temperature control
	723	+	7 systems; other cabling; and other data center
	724	+	8 infrastructure equipment and systems necessary to operate
	725	+	9 qualified tangible personal property, including fixtures;
	726	+	10 and component parts of any of the foregoing, including
	727	+	11 installation, maintenance, repair, refurbishment, and
	728	+	12 replacement of qualified tangible personal property to
	729	+	13 generate, transform, transmit, distribute, or manage
	730	+	14 electricity necessary to operate qualified tangible
	731	+	15 personal property; and all other tangible personal
	732	+	16 property that is essential to the operations of a computer
	733	+	17 data center. The term "qualified tangible personal
	734	+	18 property" also includes building materials physically
	735	+	19 incorporated in to the qualifying data center. To document
	736	+	20 the exemption allowed under this Section, the retailer
	737	+	21 must obtain from the purchaser a copy of the certificate
	738	+	22 of eligibility issued by the Department of Commerce and
	739	+	23 Economic Opportunity.
	740	+	24 This item (40) is exempt from the provisions of Section
	741	+	25 3-90.
	742	+	26 (41) Beginning July 1, 2022, breast pumps, breast pump
	743	+
	744	+
	745	+
	746	+
	747	+
	748	+	SB1963 Enrolled - 21 - LRB103 25648 HLH 51997 b
	749	+
	750	+
	751	+	SB1963 Enrolled- 22 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 22 - LRB103 25648 HLH 51997 b
	752	+	SB1963 Enrolled - 22 - LRB103 25648 HLH 51997 b
	753	+	1 collection and storage supplies, and breast pump kits. This
	754	+	2 item (41) is exempt from the provisions of Section 3-90. As
	755	+	3 used in this item (41):
	756	+	4 "Breast pump" means an electrically controlled or
	757	+	5 manually controlled pump device designed or marketed to be
	758	+	6 used to express milk from a human breast during lactation,
	759	+	7 including the pump device and any battery, AC adapter, or
	760	+	8 other power supply unit that is used to power the pump
	761	+	9 device and is packaged and sold with the pump device at the
	762	+	10 time of sale.
	763	+	11 "Breast pump collection and storage supplies" means
	764	+	12 items of tangible personal property designed or marketed
	765	+	13 to be used in conjunction with a breast pump to collect
	766	+	14 milk expressed from a human breast and to store collected
	767	+	15 milk until it is ready for consumption.
	768	+	16 "Breast pump collection and storage supplies"
	769	+	17 includes, but is not limited to: breast shields and breast
	770	+	18 shield connectors; breast pump tubes and tubing adapters;
	771	+	19 breast pump valves and membranes; backflow protectors and
	772	+	20 backflow protector adaptors; bottles and bottle caps
	773	+	21 specific to the operation of the breast pump; and breast
	774	+	22 milk storage bags.
	775	+	23 "Breast pump collection and storage supplies" does not
	776	+	24 include: (1) bottles and bottle caps not specific to the
	777	+	25 operation of the breast pump; (2) breast pump travel bags
	778	+	26 and other similar carrying accessories, including ice
	779	+
	780	+
	781	+
	782	+
	783	+
	784	+	SB1963 Enrolled - 22 - LRB103 25648 HLH 51997 b
	785	+
	786	+
	787	+	SB1963 Enrolled- 23 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 23 - LRB103 25648 HLH 51997 b
	788	+	SB1963 Enrolled - 23 - LRB103 25648 HLH 51997 b
	789	+	1 packs, labels, and other similar products; (3) breast pump
	790	+	2 cleaning supplies; (4) nursing bras, bra pads, breast
	791	+	3 shells, and other similar products; and (5) creams,
	792	+	4 ointments, and other similar products that relieve
	793	+	5 breastfeeding-related symptoms or conditions of the
	794	+	6 breasts or nipples, unless sold as part of a breast pump
	795	+	7 kit that is pre-packaged by the breast pump manufacturer
	796	+	8 or distributor.
	797	+	9 "Breast pump kit" means a kit that: (1) contains no
	798	+	10 more than a breast pump, breast pump collection and
	799	+	11 storage supplies, a rechargeable battery for operating the
	800	+	12 breast pump, a breastmilk cooler, bottle stands, ice
	801	+	13 packs, and a breast pump carrying case; and (2) is
	802	+	14 pre-packaged as a breast pump kit by the breast pump
	803	+	15 manufacturer or distributor.
	804	+	16 (42) (41) Tangible personal property sold by or on behalf
	805	+	17 of the State Treasurer pursuant to the Revised Uniform
	806	+	18 Unclaimed Property Act. This item (42) (41) is exempt from the
	807	+	19 provisions of Section 3-90.
	808	+	20 (Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
	809	+	21 101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
	810	+	22 6-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
	811	+	23 102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
	812	+	24 eff. 5-27-22; revised 8-1-22.)
	813	+	25 Section 5-10. The Service Use Tax Act is amended by
	814	+
	815	+
	816	+
	817	+
	818	+
	819	+	SB1963 Enrolled - 23 - LRB103 25648 HLH 51997 b
	820	+
	821	+
	822	+	SB1963 Enrolled- 24 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 24 - LRB103 25648 HLH 51997 b
	823	+	SB1963 Enrolled - 24 - LRB103 25648 HLH 51997 b
	824	+	1 changing Section 3-5 as follows:
	825	+	2 (35 ILCS 110/3-5)
	826	+	3 Sec. 3-5. Exemptions. Use of the following tangible
	827	+	4 personal property is exempt from the tax imposed by this Act:
	828	+	5 (1) Personal property purchased from a corporation,
	829	+	6 society, association, foundation, institution, or
	830	+	7 organization, other than a limited liability company, that is
	831	+	8 organized and operated as a not-for-profit service enterprise
	832	+	9 for the benefit of persons 65 years of age or older if the
	833	+	10 personal property was not purchased by the enterprise for the
	834	+	11 purpose of resale by the enterprise.
	835	+	12 (2) Personal property purchased by a non-profit Illinois
	836	+	13 county fair association for use in conducting, operating, or
	837	+	14 promoting the county fair.
	838	+	15 (3) Personal property purchased by a not-for-profit arts
	839	+	16 or cultural organization that establishes, by proof required
	840	+	17 by the Department by rule, that it has received an exemption
	841	+	18 under Section 501(c)(3) of the Internal Revenue Code and that
	842	+	19 is organized and operated primarily for the presentation or
	843	+	20 support of arts or cultural programming, activities, or
	844	+	21 services. These organizations include, but are not limited to,
	845	+	22 music and dramatic arts organizations such as symphony
	846	+	23 orchestras and theatrical groups, arts and cultural service
	847	+	24 organizations, local arts councils, visual arts organizations,
	848	+	25 and media arts organizations. On and after July 1, 2001 (the
	849	+
	850	+
	851	+
	852	+
	853	+
	854	+	SB1963 Enrolled - 24 - LRB103 25648 HLH 51997 b
	855	+
	856	+
	857	+	SB1963 Enrolled- 25 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 25 - LRB103 25648 HLH 51997 b
	858	+	SB1963 Enrolled - 25 - LRB103 25648 HLH 51997 b
	859	+	1 effective date of Public Act 92-35), however, an entity
	860	+	2 otherwise eligible for this exemption shall not make tax-free
	861	+	3 purchases unless it has an active identification number issued
	862	+	4 by the Department.
	863	+	5 (4) Legal tender, currency, medallions, or gold or silver
	864	+	6 coinage issued by the State of Illinois, the government of the
	865	+	7 United States of America, or the government of any foreign
	866	+	8 country, and bullion.
	867	+	9 (5) Until July 1, 2003 and beginning again on September 1,
	868	+	10 2004 through August 30, 2014, graphic arts machinery and
	869	+	11 equipment, including repair and replacement parts, both new
	870	+	12 and used, and including that manufactured on special order or
	871	+	13 purchased for lease, certified by the purchaser to be used
	872	+	14 primarily for graphic arts production. Equipment includes
	873	+	15 chemicals or chemicals acting as catalysts but only if the
	874	+	16 chemicals or chemicals acting as catalysts effect a direct and
	875	+	17 immediate change upon a graphic arts product. Beginning on
	876	+	18 July 1, 2017, graphic arts machinery and equipment is included
	877	+	19 in the manufacturing and assembling machinery and equipment
	878	+	20 exemption under Section 2 of this Act.
	879	+	21 (6) Personal property purchased from a teacher-sponsored
	880	+	22 student organization affiliated with an elementary or
	881	+	23 secondary school located in Illinois.
	882	+	24 (7) Farm machinery and equipment, both new and used,
	883	+	25 including that manufactured on special order, certified by the
	884	+	26 purchaser to be used primarily for production agriculture or
	885	+
	886	+
	887	+
	888	+
	889	+
	890	+	SB1963 Enrolled - 25 - LRB103 25648 HLH 51997 b
	891	+
	892	+
	893	+	SB1963 Enrolled- 26 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 26 - LRB103 25648 HLH 51997 b
	894	+	SB1963 Enrolled - 26 - LRB103 25648 HLH 51997 b
	895	+	1 State or federal agricultural programs, including individual
	896	+	2 replacement parts for the machinery and equipment, including
	897	+	3 machinery and equipment purchased for lease, and including
	898	+	4 implements of husbandry defined in Section 1-130 of the
	899	+	5 Illinois Vehicle Code, farm machinery and agricultural
	900	+	6 chemical and fertilizer spreaders, and nurse wagons required
	901	+	7 to be registered under Section 3-809 of the Illinois Vehicle
	902	+	8 Code, but excluding other motor vehicles required to be
	903	+	9 registered under the Illinois Vehicle Code. Horticultural
	904	+	10 polyhouses or hoop houses used for propagating, growing, or
	905	+	11 overwintering plants shall be considered farm machinery and
	906	+	12 equipment under this item (7). Agricultural chemical tender
	907	+	13 tanks and dry boxes shall include units sold separately from a
	908	+	14 motor vehicle required to be licensed and units sold mounted
	909	+	15 on a motor vehicle required to be licensed if the selling price
	910	+	16 of the tender is separately stated.
	911	+	17 Farm machinery and equipment shall include precision
	912	+	18 farming equipment that is installed or purchased to be
	913	+	19 installed on farm machinery and equipment including, but not
	914	+	20 limited to, tractors, harvesters, sprayers, planters, seeders,
	915	+	21 or spreaders. Precision farming equipment includes, but is not
	916	+	22 limited to, soil testing sensors, computers, monitors,
	917	+	23 software, global positioning and mapping systems, and other
	918	+	24 such equipment.
	919	+	25 Farm machinery and equipment also includes computers,
	920	+	26 sensors, software, and related equipment used primarily in the
	921	+
	922	+
	923	+
	924	+
	925	+
	926	+	SB1963 Enrolled - 26 - LRB103 25648 HLH 51997 b
	927	+
	928	+
	929	+	SB1963 Enrolled- 27 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 27 - LRB103 25648 HLH 51997 b
	930	+	SB1963 Enrolled - 27 - LRB103 25648 HLH 51997 b
	931	+	1 computer-assisted operation of production agriculture
	932	+	2 facilities, equipment, and activities such as, but not limited
	933	+	3 to, the collection, monitoring, and correlation of animal and
	934	+	4 crop data for the purpose of formulating animal diets and
	935	+	5 agricultural chemicals. This item (7) is exempt from the
	936	+	6 provisions of Section 3-75.
	937	+	7 (8) Until June 30, 2013, fuel and petroleum products sold
	938	+	8 to or used by an air common carrier, certified by the carrier
	939	+	9 to be used for consumption, shipment, or storage in the
	940	+	10 conduct of its business as an air common carrier, for a flight
	941	+	11 destined for or returning from a location or locations outside
	942	+	12 the United States without regard to previous or subsequent
	943	+	13 domestic stopovers.
	944	+	14 Beginning July 1, 2013, fuel and petroleum products sold
	945	+	15 to or used by an air carrier, certified by the carrier to be
	946	+	16 used for consumption, shipment, or storage in the conduct of
	947	+	17 its business as an air common carrier, for a flight that (i) is
	948	+	18 engaged in foreign trade or is engaged in trade between the
	949	+	19 United States and any of its possessions and (ii) transports
	950	+	20 at least one individual or package for hire from the city of
	951	+	21 origination to the city of final destination on the same
	952	+	22 aircraft, without regard to a change in the flight number of
	953	+	23 that aircraft.
	954	+	24 (9) Proceeds of mandatory service charges separately
	955	+	25 stated on customers' bills for the purchase and consumption of
	956	+	26 food and beverages acquired as an incident to the purchase of a
	957	+
	958	+
	959	+
	960	+
	961	+
	962	+	SB1963 Enrolled - 27 - LRB103 25648 HLH 51997 b
	963	+
	964	+
	965	+	SB1963 Enrolled- 28 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 28 - LRB103 25648 HLH 51997 b
	966	+	SB1963 Enrolled - 28 - LRB103 25648 HLH 51997 b
	967	+	1 service from a serviceman, to the extent that the proceeds of
	968	+	2 the service charge are in fact turned over as tips or as a
	969	+	3 substitute for tips to the employees who participate directly
	970	+	4 in preparing, serving, hosting or cleaning up the food or
	971	+	5 beverage function with respect to which the service charge is
	972	+	6 imposed.
	973	+	7 (10) Until July 1, 2003, oil field exploration, drilling,
	974	+	8 and production equipment, including (i) rigs and parts of
	975	+	9 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
	976	+	10 pipe and tubular goods, including casing and drill strings,
	977	+	11 (iii) pumps and pump-jack units, (iv) storage tanks and flow
	978	+	12 lines, (v) any individual replacement part for oil field
	979	+	13 exploration, drilling, and production equipment, and (vi)
	980	+	14 machinery and equipment purchased for lease; but excluding
	981	+	15 motor vehicles required to be registered under the Illinois
	982	+	16 Vehicle Code.
	983	+	17 (11) Proceeds from the sale of photoprocessing machinery
	984	+	18 and equipment, including repair and replacement parts, both
	985	+	19 new and used, including that manufactured on special order,
	986	+	20 certified by the purchaser to be used primarily for
	987	+	21 photoprocessing, and including photoprocessing machinery and
	988	+	22 equipment purchased for lease.
	989	+	23 (12) Until July 1, 2028, coal and aggregate exploration,
	990	+	24 mining, off-highway hauling, processing, maintenance, and
	991	+	25 reclamation equipment, including replacement parts and
	992	+	26 equipment, and including equipment purchased for lease, but
	993	+
	994	+
	995	+
	996	+
	997	+
	998	+	SB1963 Enrolled - 28 - LRB103 25648 HLH 51997 b
	999	+
	1000	+
	1001	+	SB1963 Enrolled- 29 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 29 - LRB103 25648 HLH 51997 b
	1002	+	SB1963 Enrolled - 29 - LRB103 25648 HLH 51997 b
	1003	+	1 excluding motor vehicles required to be registered under the
	1004	+	2 Illinois Vehicle Code. The changes made to this Section by
	1005	+	3 Public Act 97-767 apply on and after July 1, 2003, but no claim
	1006	+	4 for credit or refund is allowed on or after August 16, 2013
	1007	+	5 (the effective date of Public Act 98-456) for such taxes paid
	1008	+	6 during the period beginning July 1, 2003 and ending on August
	1009	+	7 16, 2013 (the effective date of Public Act 98-456).
	1010	+	8 (13) Semen used for artificial insemination of livestock
	1011	+	9 for direct agricultural production.
	1012	+	10 (14) Horses, or interests in horses, registered with and
	1013	+	11 meeting the requirements of any of the Arabian Horse Club
	1014	+	12 Registry of America, Appaloosa Horse Club, American Quarter
	1015	+	13 Horse Association, United States Trotting Association, or
	1016	+	14 Jockey Club, as appropriate, used for purposes of breeding or
	1017	+	15 racing for prizes. This item (14) is exempt from the
	1018	+	16 provisions of Section 3-75, and the exemption provided for
	1019	+	17 under this item (14) applies for all periods beginning May 30,
	1020	+	18 1995, but no claim for credit or refund is allowed on or after
	1021	+	19 January 1, 2008 (the effective date of Public Act 95-88) for
	1022	+	20 such taxes paid during the period beginning May 30, 2000 and
	1023	+	21 ending on January 1, 2008 (the effective date of Public Act
	1024	+	22 95-88).
	1025	+	23 (15) Computers and communications equipment utilized for
	1026	+	24 any hospital purpose and equipment used in the diagnosis,
	1027	+	25 analysis, or treatment of hospital patients purchased by a
	1028	+	26 lessor who leases the equipment, under a lease of one year or
	1029	+
	1030	+
	1031	+
	1032	+
	1033	+
	1034	+	SB1963 Enrolled - 29 - LRB103 25648 HLH 51997 b
	1035	+
	1036	+
	1037	+	SB1963 Enrolled- 30 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 30 - LRB103 25648 HLH 51997 b
	1038	+	SB1963 Enrolled - 30 - LRB103 25648 HLH 51997 b
	1039	+	1 longer executed or in effect at the time the lessor would
	1040	+	2 otherwise be subject to the tax imposed by this Act, to a
	1041	+	3 hospital that has been issued an active tax exemption
	1042	+	4 identification number by the Department under Section 1g of
	1043	+	5 the Retailers' Occupation Tax Act. If the equipment is leased
	1044	+	6 in a manner that does not qualify for this exemption or is used
	1045	+	7 in any other non-exempt manner, the lessor shall be liable for
	1046	+	8 the tax imposed under this Act or the Use Tax Act, as the case
	1047	+	9 may be, based on the fair market value of the property at the
	1048	+	10 time the non-qualifying use occurs. No lessor shall collect or
	1049	+	11 attempt to collect an amount (however designated) that
	1050	+	12 purports to reimburse that lessor for the tax imposed by this
	1051	+	13 Act or the Use Tax Act, as the case may be, if the tax has not
	1052	+	14 been paid by the lessor. If a lessor improperly collects any
	1053	+	15 such amount from the lessee, the lessee shall have a legal
	1054	+	16 right to claim a refund of that amount from the lessor. If,
	1055	+	17 however, that amount is not refunded to the lessee for any
	1056	+	18 reason, the lessor is liable to pay that amount to the
	1057	+	19 Department.
	1058	+	20 (16) Personal property purchased by a lessor who leases
	1059	+	21 the property, under a lease of one year or longer executed or
	1060	+	22 in effect at the time the lessor would otherwise be subject to
	1061	+	23 the tax imposed by this Act, to a governmental body that has
	1062	+	24 been issued an active tax exemption identification number by
	1063	+	25 the Department under Section 1g of the Retailers' Occupation
	1064	+	26 Tax Act. If the property is leased in a manner that does not
	1065	+
	1066	+
	1067	+
	1068	+
	1069	+
	1070	+	SB1963 Enrolled - 30 - LRB103 25648 HLH 51997 b
	1071	+
	1072	+
	1073	+	SB1963 Enrolled- 31 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 31 - LRB103 25648 HLH 51997 b
	1074	+	SB1963 Enrolled - 31 - LRB103 25648 HLH 51997 b
	1075	+	1 qualify for this exemption or is used in any other non-exempt
	1076	+	2 manner, the lessor shall be liable for the tax imposed under
	1077	+	3 this Act or the Use Tax Act, as the case may be, based on the
	1078	+	4 fair market value of the property at the time the
	1079	+	5 non-qualifying use occurs. No lessor shall collect or attempt
	1080	+	6 to collect an amount (however designated) that purports to
	1081	+	7 reimburse that lessor for the tax imposed by this Act or the
	1082	+	8 Use Tax Act, as the case may be, if the tax has not been paid
	1083	+	9 by the lessor. If a lessor improperly collects any such amount
	1084	+	10 from the lessee, the lessee shall have a legal right to claim a
	1085	+	11 refund of that amount from the lessor. If, however, that
	1086	+	12 amount is not refunded to the lessee for any reason, the lessor
	1087	+	13 is liable to pay that amount to the Department.
	1088	+	14 (17) Beginning with taxable years ending on or after
	1089	+	15 December 31, 1995 and ending with taxable years ending on or
	1090	+	16 before December 31, 2004, personal property that is donated
	1091	+	17 for disaster relief to be used in a State or federally declared
	1092	+	18 disaster area in Illinois or bordering Illinois by a
	1093	+	19 manufacturer or retailer that is registered in this State to a
	1094	+	20 corporation, society, association, foundation, or institution
	1095	+	21 that has been issued a sales tax exemption identification
	1096	+	22 number by the Department that assists victims of the disaster
	1097	+	23 who reside within the declared disaster area.
	1098	+	24 (18) Beginning with taxable years ending on or after
	1099	+	25 December 31, 1995 and ending with taxable years ending on or
	1100	+	26 before December 31, 2004, personal property that is used in
	1101	+
	1102	+
	1103	+
	1104	+
	1105	+
	1106	+	SB1963 Enrolled - 31 - LRB103 25648 HLH 51997 b
	1107	+
	1108	+
	1109	+	SB1963 Enrolled- 32 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 32 - LRB103 25648 HLH 51997 b
	1110	+	SB1963 Enrolled - 32 - LRB103 25648 HLH 51997 b
	1111	+	1 the performance of infrastructure repairs in this State,
	1112	+	2 including but not limited to municipal roads and streets,
	1113	+	3 access roads, bridges, sidewalks, waste disposal systems,
	1114	+	4 water and sewer line extensions, water distribution and
	1115	+	5 purification facilities, storm water drainage and retention
	1116	+	6 facilities, and sewage treatment facilities, resulting from a
	1117	+	7 State or federally declared disaster in Illinois or bordering
	1118	+	8 Illinois when such repairs are initiated on facilities located
	1119	+	9 in the declared disaster area within 6 months after the
	1120	+	10 disaster.
	1121	+	11 (19) Beginning July 1, 1999, game or game birds purchased
	1122	+	12 at a "game breeding and hunting preserve area" as that term is
	1123	+	13 used in the Wildlife Code. This paragraph is exempt from the
	1124	+	14 provisions of Section 3-75.
	1125	+	15 (20) A motor vehicle, as that term is defined in Section
	1126	+	16 1-146 of the Illinois Vehicle Code, that is donated to a
	1127	+	17 corporation, limited liability company, society, association,
	1128	+	18 foundation, or institution that is determined by the
	1129	+	19 Department to be organized and operated exclusively for
	1130	+	20 educational purposes. For purposes of this exemption, "a
	1131	+	21 corporation, limited liability company, society, association,
	1132	+	22 foundation, or institution organized and operated exclusively
	1133	+	23 for educational purposes" means all tax-supported public
	1134	+	24 schools, private schools that offer systematic instruction in
	1135	+	25 useful branches of learning by methods common to public
	1136	+	26 schools and that compare favorably in their scope and
	1137	+
	1138	+
	1139	+
	1140	+
	1141	+
	1142	+	SB1963 Enrolled - 32 - LRB103 25648 HLH 51997 b
	1143	+
	1144	+
	1145	+	SB1963 Enrolled- 33 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 33 - LRB103 25648 HLH 51997 b
	1146	+	SB1963 Enrolled - 33 - LRB103 25648 HLH 51997 b
	1147	+	1 intensity with the course of study presented in tax-supported
	1148	+	2 schools, and vocational or technical schools or institutes
	1149	+	3 organized and operated exclusively to provide a course of
	1150	+	4 study of not less than 6 weeks duration and designed to prepare
	1151	+	5 individuals to follow a trade or to pursue a manual,
	1152	+	6 technical, mechanical, industrial, business, or commercial
	1153	+	7 occupation.
	1154	+	8 (21) Beginning January 1, 2000, personal property,
	1155	+	9 including food, purchased through fundraising events for the
	1156	+	10 benefit of a public or private elementary or secondary school,
	1157	+	11 a group of those schools, or one or more school districts if
	1158	+	12 the events are sponsored by an entity recognized by the school
	1159	+	13 district that consists primarily of volunteers and includes
	1160	+	14 parents and teachers of the school children. This paragraph
	1161	+	15 does not apply to fundraising events (i) for the benefit of
	1162	+	16 private home instruction or (ii) for which the fundraising
	1163	+	17 entity purchases the personal property sold at the events from
	1164	+	18 another individual or entity that sold the property for the
	1165	+	19 purpose of resale by the fundraising entity and that profits
	1166	+	20 from the sale to the fundraising entity. This paragraph is
	1167	+	21 exempt from the provisions of Section 3-75.
	1168	+	22 (22) Beginning January 1, 2000 and through December 31,
	1169	+	23 2001, new or used automatic vending machines that prepare and
	1170	+	24 serve hot food and beverages, including coffee, soup, and
	1171	+	25 other items, and replacement parts for these machines.
	1172	+	26 Beginning January 1, 2002 and through June 30, 2003, machines
	1173	+
	1174	+
	1175	+
	1176	+
	1177	+
	1178	+	SB1963 Enrolled - 33 - LRB103 25648 HLH 51997 b
	1179	+
	1180	+
	1181	+	SB1963 Enrolled- 34 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 34 - LRB103 25648 HLH 51997 b
	1182	+	SB1963 Enrolled - 34 - LRB103 25648 HLH 51997 b
	1183	+	1 and parts for machines used in commercial, coin-operated
	1184	+	2 amusement and vending business if a use or occupation tax is
	1185	+	3 paid on the gross receipts derived from the use of the
	1186	+	4 commercial, coin-operated amusement and vending machines. This
	1187	+	5 paragraph is exempt from the provisions of Section 3-75.
	1188	+	6 (23) Beginning August 23, 2001 and through June 30, 2016,
	1189	+	7 food for human consumption that is to be consumed off the
	1190	+	8 premises where it is sold (other than alcoholic beverages,
	1191	+	9 soft drinks, and food that has been prepared for immediate
	1192	+	10 consumption) and prescription and nonprescription medicines,
	1193	+	11 drugs, medical appliances, and insulin, urine testing
	1194	+	12 materials, syringes, and needles used by diabetics, for human
	1195	+	13 use, when purchased for use by a person receiving medical
	1196	+	14 assistance under Article V of the Illinois Public Aid Code who
	1197	+	15 resides in a licensed long-term care facility, as defined in
	1198	+	16 the Nursing Home Care Act, or in a licensed facility as defined
	1199	+	17 in the ID/DD Community Care Act, the MC/DD Act, or the
	1200	+	18 Specialized Mental Health Rehabilitation Act of 2013.
	1201	+	19 (24) Beginning on August 2, 2001 (the effective date of
	1202	+	20 Public Act 92-227), computers and communications equipment
	1203	+	21 utilized for any hospital purpose and equipment used in the
	1204	+	22 diagnosis, analysis, or treatment of hospital patients
	1205	+	23 purchased by a lessor who leases the equipment, under a lease
	1206	+	24 of one year or longer executed or in effect at the time the
	1207	+	25 lessor would otherwise be subject to the tax imposed by this
	1208	+	26 Act, to a hospital that has been issued an active tax exemption
	1209	+
	1210	+
	1211	+
	1212	+
	1213	+
	1214	+	SB1963 Enrolled - 34 - LRB103 25648 HLH 51997 b
	1215	+
	1216	+
	1217	+	SB1963 Enrolled- 35 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 35 - LRB103 25648 HLH 51997 b
	1218	+	SB1963 Enrolled - 35 - LRB103 25648 HLH 51997 b
	1219	+	1 identification number by the Department under Section 1g of
	1220	+	2 the Retailers' Occupation Tax Act. If the equipment is leased
	1221	+	3 in a manner that does not qualify for this exemption or is used
	1222	+	4 in any other nonexempt manner, the lessor shall be liable for
	1223	+	5 the tax imposed under this Act or the Use Tax Act, as the case
	1224	+	6 may be, based on the fair market value of the property at the
	1225	+	7 time the nonqualifying use occurs. No lessor shall collect or
	1226	+	8 attempt to collect an amount (however designated) that
	1227	+	9 purports to reimburse that lessor for the tax imposed by this
	1228	+	10 Act or the Use Tax Act, as the case may be, if the tax has not
	1229	+	11 been paid by the lessor. If a lessor improperly collects any
	1230	+	12 such amount from the lessee, the lessee shall have a legal
	1231	+	13 right to claim a refund of that amount from the lessor. If,
	1232	+	14 however, that amount is not refunded to the lessee for any
	1233	+	15 reason, the lessor is liable to pay that amount to the
	1234	+	16 Department. This paragraph is exempt from the provisions of
	1235	+	17 Section 3-75.
	1236	+	18 (25) Beginning on August 2, 2001 (the effective date of
	1237	+	19 Public Act 92-227), personal property purchased by a lessor
	1238	+	20 who leases the property, under a lease of one year or longer
	1239	+	21 executed or in effect at the time the lessor would otherwise be
	1240	+	22 subject to the tax imposed by this Act, to a governmental body
	1241	+	23 that has been issued an active tax exemption identification
	1242	+	24 number by the Department under Section 1g of the Retailers'
	1243	+	25 Occupation Tax Act. If the property is leased in a manner that
	1244	+	26 does not qualify for this exemption or is used in any other
	1245	+
	1246	+
	1247	+
	1248	+
	1249	+
	1250	+	SB1963 Enrolled - 35 - LRB103 25648 HLH 51997 b
	1251	+
	1252	+
	1253	+	SB1963 Enrolled- 36 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 36 - LRB103 25648 HLH 51997 b
	1254	+	SB1963 Enrolled - 36 - LRB103 25648 HLH 51997 b
	1255	+	1 nonexempt manner, the lessor shall be liable for the tax
	1256	+	2 imposed under this Act or the Use Tax Act, as the case may be,
	1257	+	3 based on the fair market value of the property at the time the
	1258	+	4 nonqualifying use occurs. No lessor shall collect or attempt
	1259	+	5 to collect an amount (however designated) that purports to
	1260	+	6 reimburse that lessor for the tax imposed by this Act or the
	1261	+	7 Use Tax Act, as the case may be, if the tax has not been paid
	1262	+	8 by the lessor. If a lessor improperly collects any such amount
	1263	+	9 from the lessee, the lessee shall have a legal right to claim a
	1264	+	10 refund of that amount from the lessor. If, however, that
	1265	+	11 amount is not refunded to the lessee for any reason, the lessor
	1266	+	12 is liable to pay that amount to the Department. This paragraph
	1267	+	13 is exempt from the provisions of Section 3-75.
	1268	+	14 (26) Beginning January 1, 2008, tangible personal property
	1269	+	15 used in the construction or maintenance of a community water
	1270	+	16 supply, as defined under Section 3.145 of the Environmental
	1271	+	17 Protection Act, that is operated by a not-for-profit
	1272	+	18 corporation that holds a valid water supply permit issued
	1273	+	19 under Title IV of the Environmental Protection Act. This
	1274	+	20 paragraph is exempt from the provisions of Section 3-75.
	1275	+	21 (27) Beginning January 1, 2010 and continuing through
	1276	+	22 December 31, 2029 December 31, 2024, materials, parts,
	1277	+	23 equipment, components, and furnishings incorporated into or
	1278	+	24 upon an aircraft as part of the modification, refurbishment,
	1279	+	25 completion, replacement, repair, or maintenance of the
	1280	+	26 aircraft. This exemption includes consumable supplies used in
	1281	+
	1282	+
	1283	+
	1284	+
	1285	+
	1286	+	SB1963 Enrolled - 36 - LRB103 25648 HLH 51997 b
	1287	+
	1288	+
	1289	+	SB1963 Enrolled- 37 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 37 - LRB103 25648 HLH 51997 b
	1290	+	SB1963 Enrolled - 37 - LRB103 25648 HLH 51997 b
	1291	+	1 the modification, refurbishment, completion, replacement,
	1292	+	2 repair, and maintenance of aircraft. However, until January 1,
	1293	+	3 2024, this exemption , but excludes any materials, parts,
	1294	+	4 equipment, components, and consumable supplies used in the
	1295	+	5 modification, replacement, repair, and maintenance of aircraft
	1296	+	6 engines or power plants, whether such engines or power plants
	1297	+	7 are installed or uninstalled upon any such aircraft.
	1298	+	8 "Consumable supplies" include, but are not limited to,
	1299	+	9 adhesive, tape, sandpaper, general purpose lubricants,
	1300	+	10 cleaning solution, latex gloves, and protective films.
	1301	+	11 Beginning January 1, 2010 and continuing through December
	1302	+	12 31, 2023, this This exemption applies only to the use of
	1303	+	13 qualifying tangible personal property transferred incident to
	1304	+	14 the modification, refurbishment, completion, replacement,
	1305	+	15 repair, or maintenance of aircraft by persons who (i) hold an
	1306	+	16 Air Agency Certificate and are empowered to operate an
	1307	+	17 approved repair station by the Federal Aviation
	1308	+	18 Administration, (ii) have a Class IV Rating, and (iii) conduct
	1309	+	19 operations in accordance with Part 145 of the Federal Aviation
	1310	+	20 Regulations. From January 1, 2024 through December 31, 2029,
	1311	+	21 this exemption applies only to the use of qualifying tangible
	1312	+	22 personal property by: (A) persons who modify, refurbish,
	1313	+	23 complete, repair, replace, or maintain aircraft and who (i)
	1314	+	24 hold an Air Agency Certificate and are empowered to operate an
	1315	+	25 approved repair station by the Federal Aviation
	1316	+	26 Administration, (ii) have a Class IV Rating, and (iii) conduct
	1317	+
	1318	+
	1319	+
	1320	+
	1321	+
	1322	+	SB1963 Enrolled - 37 - LRB103 25648 HLH 51997 b
	1323	+
	1324	+
	1325	+	SB1963 Enrolled- 38 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 38 - LRB103 25648 HLH 51997 b
	1326	+	SB1963 Enrolled - 38 - LRB103 25648 HLH 51997 b
	1327	+	1 operations in accordance with Part 145 of the Federal Aviation
	1328	+	2 Regulations; and (B) persons who engage in the modification,
	1329	+	3 replacement, repair, and maintenance of aircraft engines or
	1330	+	4 power plants without regard to whether or not those persons
	1331	+	5 meet the qualifications of item (A).
	1332	+	6 The exemption does not include aircraft operated by a
	1333	+	7 commercial air carrier providing scheduled passenger air
	1334	+	8 service pursuant to authority issued under Part 121 or Part
	1335	+	9 129 of the Federal Aviation Regulations. The changes made to
	1336	+	10 this paragraph (27) by Public Act 98-534 are declarative of
	1337	+	11 existing law. It is the intent of the General Assembly that the
	1338	+	12 exemption under this paragraph (27) applies continuously from
	1339	+	13 January 1, 2010 through December 31, 2024; however, no claim
	1340	+	14 for credit or refund is allowed for taxes paid as a result of
	1341	+	15 the disallowance of this exemption on or after January 1, 2015
	1342	+	16 and prior to February 5, 2020 (the effective date of Public Act
	1343	+	17 101-629) this amendatory Act of the 101st General Assembly.
	1344	+	18 (28) Tangible personal property purchased by a
	1345	+	19 public-facilities corporation, as described in Section
	1346	+	20 11-65-10 of the Illinois Municipal Code, for purposes of
	1347	+	21 constructing or furnishing a municipal convention hall, but
	1348	+	22 only if the legal title to the municipal convention hall is
	1349	+	23 transferred to the municipality without any further
	1350	+	24 consideration by or on behalf of the municipality at the time
	1351	+	25 of the completion of the municipal convention hall or upon the
	1352	+	26 retirement or redemption of any bonds or other debt
	1353	+
	1354	+
	1355	+
	1356	+
	1357	+
	1358	+	SB1963 Enrolled - 38 - LRB103 25648 HLH 51997 b
	1359	+
	1360	+
	1361	+	SB1963 Enrolled- 39 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 39 - LRB103 25648 HLH 51997 b
	1362	+	SB1963 Enrolled - 39 - LRB103 25648 HLH 51997 b
	1363	+	1 instruments issued by the public-facilities corporation in
	1364	+	2 connection with the development of the municipal convention
	1365	+	3 hall. This exemption includes existing public-facilities
	1366	+	4 corporations as provided in Section 11-65-25 of the Illinois
	1367	+	5 Municipal Code. This paragraph is exempt from the provisions
	1368	+	6 of Section 3-75.
	1369	+	7 (29) Beginning January 1, 2017 and through December 31,
	1370	+	8 2026, menstrual pads, tampons, and menstrual cups.
	1371	+	9 (30) Tangible personal property transferred to a purchaser
	1372	+	10 who is exempt from the tax imposed by this Act by operation of
	1373	+	11 federal law. This paragraph is exempt from the provisions of
	1374	+	12 Section 3-75.
	1375	+	13 (31) Qualified tangible personal property used in the
	1376	+	14 construction or operation of a data center that has been
	1377	+	15 granted a certificate of exemption by the Department of
	1378	+	16 Commerce and Economic Opportunity, whether that tangible
	1379	+	17 personal property is purchased by the owner, operator, or
	1380	+	18 tenant of the data center or by a contractor or subcontractor
	1381	+	19 of the owner, operator, or tenant. Data centers that would
	1382	+	20 have qualified for a certificate of exemption prior to January
	1383	+	21 1, 2020 had Public Act 101-31 this amendatory Act of the 101st
	1384	+	22 General Assembly been in effect, may apply for and obtain an
	1385	+	23 exemption for subsequent purchases of computer equipment or
	1386	+	24 enabling software purchased or leased to upgrade, supplement,
	1387	+	25 or replace computer equipment or enabling software purchased
	1388	+	26 or leased in the original investment that would have
	1389	+
	1390	+
	1391	+
	1392	+
	1393	+
	1394	+	SB1963 Enrolled - 39 - LRB103 25648 HLH 51997 b
	1395	+
	1396	+
	1397	+	SB1963 Enrolled- 40 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 40 - LRB103 25648 HLH 51997 b
	1398	+	SB1963 Enrolled - 40 - LRB103 25648 HLH 51997 b
	1399	+	1 qualified.
	1400	+	2 The Department of Commerce and Economic Opportunity shall
	1401	+	3 grant a certificate of exemption under this item (31) to
	1402	+	4 qualified data centers as defined by Section 605-1025 of the
	1403	+	5 Department of Commerce and Economic Opportunity Law of the
	1404	+	6 Civil Administrative Code of Illinois.
	1405	+	7 For the purposes of this item (31):
	1406	+	8 "Data center" means a building or a series of
	1407	+	9 buildings rehabilitated or constructed to house working
	1408	+	10 servers in one physical location or multiple sites within
	1409	+	11 the State of Illinois.
	1410	+	12 "Qualified tangible personal property" means:
	1411	+	13 electrical systems and equipment; climate control and
	1412	+	14 chilling equipment and systems; mechanical systems and
	1413	+	15 equipment; monitoring and secure systems; emergency
	1414	+	16 generators; hardware; computers; servers; data storage
	1415	+	17 devices; network connectivity equipment; racks; cabinets;
	1416	+	18 telecommunications cabling infrastructure; raised floor
	1417	+	19 systems; peripheral components or systems; software;
	1418	+	20 mechanical, electrical, or plumbing systems; battery
	1419	+	21 systems; cooling systems and towers; temperature control
	1420	+	22 systems; other cabling; and other data center
	1421	+	23 infrastructure equipment and systems necessary to operate
	1422	+	24 qualified tangible personal property, including fixtures;
	1423	+	25 and component parts of any of the foregoing, including
	1424	+	26 installation, maintenance, repair, refurbishment, and
	1425	+
	1426	+
	1427	+
	1428	+
	1429	+
	1430	+	SB1963 Enrolled - 40 - LRB103 25648 HLH 51997 b
	1431	+
	1432	+
	1433	+	SB1963 Enrolled- 41 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 41 - LRB103 25648 HLH 51997 b
	1434	+	SB1963 Enrolled - 41 - LRB103 25648 HLH 51997 b
	1435	+	1 replacement of qualified tangible personal property to
	1436	+	2 generate, transform, transmit, distribute, or manage
	1437	+	3 electricity necessary to operate qualified tangible
	1438	+	4 personal property; and all other tangible personal
	1439	+	5 property that is essential to the operations of a computer
	1440	+	6 data center. The term "qualified tangible personal
	1441	+	7 property" also includes building materials physically
	1442	+	8 incorporated in to the qualifying data center. To document
	1443	+	9 the exemption allowed under this Section, the retailer
	1444	+	10 must obtain from the purchaser a copy of the certificate
	1445	+	11 of eligibility issued by the Department of Commerce and
	1446	+	12 Economic Opportunity.
	1447	+	13 This item (31) is exempt from the provisions of Section
	1448	+	14 3-75.
	1449	+	15 (32) Beginning July 1, 2022, breast pumps, breast pump
	1450	+	16 collection and storage supplies, and breast pump kits. This
	1451	+	17 item (32) is exempt from the provisions of Section 3-75. As
	1452	+	18 used in this item (32):
	1453	+	19 "Breast pump" means an electrically controlled or
	1454	+	20 manually controlled pump device designed or marketed to be
	1455	+	21 used to express milk from a human breast during lactation,
	1456	+	22 including the pump device and any battery, AC adapter, or
	1457	+	23 other power supply unit that is used to power the pump
	1458	+	24 device and is packaged and sold with the pump device at the
	1459	+	25 time of sale.
	1460	+	26 "Breast pump collection and storage supplies" means
	1461	+
	1462	+
	1463	+
	1464	+
	1465	+
	1466	+	SB1963 Enrolled - 41 - LRB103 25648 HLH 51997 b
	1467	+
	1468	+
	1469	+	SB1963 Enrolled- 42 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 42 - LRB103 25648 HLH 51997 b
	1470	+	SB1963 Enrolled - 42 - LRB103 25648 HLH 51997 b
	1471	+	1 items of tangible personal property designed or marketed
	1472	+	2 to be used in conjunction with a breast pump to collect
	1473	+	3 milk expressed from a human breast and to store collected
	1474	+	4 milk until it is ready for consumption.
	1475	+	5 "Breast pump collection and storage supplies"
	1476	+	6 includes, but is not limited to: breast shields and breast
	1477	+	7 shield connectors; breast pump tubes and tubing adapters;
	1478	+	8 breast pump valves and membranes; backflow protectors and
	1479	+	9 backflow protector adaptors; bottles and bottle caps
	1480	+	10 specific to the operation of the breast pump; and breast
	1481	+	11 milk storage bags.
	1482	+	12 "Breast pump collection and storage supplies" does not
	1483	+	13 include: (1) bottles and bottle caps not specific to the
	1484	+	14 operation of the breast pump; (2) breast pump travel bags
	1485	+	15 and other similar carrying accessories, including ice
	1486	+	16 packs, labels, and other similar products; (3) breast pump
	1487	+	17 cleaning supplies; (4) nursing bras, bra pads, breast
	1488	+	18 shells, and other similar products; and (5) creams,
	1489	+	19 ointments, and other similar products that relieve
	1490	+	20 breastfeeding-related symptoms or conditions of the
	1491	+	21 breasts or nipples, unless sold as part of a breast pump
	1492	+	22 kit that is pre-packaged by the breast pump manufacturer
	1493	+	23 or distributor.
	1494	+	24 "Breast pump kit" means a kit that: (1) contains no
	1495	+	25 more than a breast pump, breast pump collection and
	1496	+	26 storage supplies, a rechargeable battery for operating the
	1497	+
	1498	+
	1499	+
	1500	+
	1501	+
	1502	+	SB1963 Enrolled - 42 - LRB103 25648 HLH 51997 b
	1503	+
	1504	+
	1505	+	SB1963 Enrolled- 43 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 43 - LRB103 25648 HLH 51997 b
	1506	+	SB1963 Enrolled - 43 - LRB103 25648 HLH 51997 b
	1507	+	1 breast pump, a breastmilk cooler, bottle stands, ice
	1508	+	2 packs, and a breast pump carrying case; and (2) is
	1509	+	3 pre-packaged as a breast pump kit by the breast pump
	1510	+	4 manufacturer or distributor.
	1511	+	5 (33) (32) Tangible personal property sold by or on behalf
	1512	+	6 of the State Treasurer pursuant to the Revised Uniform
	1513	+	7 Unclaimed Property Act. This item (33) (32) is exempt from the
	1514	+	8 provisions of Section 3-75.
	1515	+	9 (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
	1516	+	10 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
	1517	+	11 70, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
	1518	+	12 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
	1519	+	13 Section 5-15. The Service Occupation Tax Act is amended by
	1520	+	14 changing Section 3-5 as follows:
	1521	+	15 (35 ILCS 115/3-5)
	1522	+	16 Sec. 3-5. Exemptions. The following tangible personal
	1523	+	17 property is exempt from the tax imposed by this Act:
	1524	+	18 (1) Personal property sold by a corporation, society,
	1525	+	19 association, foundation, institution, or organization, other
	1526	+	20 than a limited liability company, that is organized and
	1527	+	21 operated as a not-for-profit service enterprise for the
	1528	+	22 benefit of persons 65 years of age or older if the personal
	1529	+	23 property was not purchased by the enterprise for the purpose
	1530	+	24 of resale by the enterprise.
	1531	+
	1532	+
	1533	+
	1534	+
	1535	+
	1536	+	SB1963 Enrolled - 43 - LRB103 25648 HLH 51997 b
	1537	+
	1538	+
	1539	+	SB1963 Enrolled- 44 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 44 - LRB103 25648 HLH 51997 b
	1540	+	SB1963 Enrolled - 44 - LRB103 25648 HLH 51997 b
	1541	+	1 (2) Personal property purchased by a not-for-profit
	1542	+	2 Illinois county fair association for use in conducting,
	1543	+	3 operating, or promoting the county fair.
	1544	+	4 (3) Personal property purchased by any not-for-profit arts
	1545	+	5 or cultural organization that establishes, by proof required
	1546	+	6 by the Department by rule, that it has received an exemption
	1547	+	7 under Section 501(c)(3) of the Internal Revenue Code and that
	1548	+	8 is organized and operated primarily for the presentation or
	1549	+	9 support of arts or cultural programming, activities, or
	1550	+	10 services. These organizations include, but are not limited to,
	1551	+	11 music and dramatic arts organizations such as symphony
	1552	+	12 orchestras and theatrical groups, arts and cultural service
	1553	+	13 organizations, local arts councils, visual arts organizations,
	1554	+	14 and media arts organizations. On and after July 1, 2001 (the
	1555	+	15 effective date of Public Act 92-35), however, an entity
	1556	+	16 otherwise eligible for this exemption shall not make tax-free
	1557	+	17 purchases unless it has an active identification number issued
	1558	+	18 by the Department.
	1559	+	19 (4) Legal tender, currency, medallions, or gold or silver
	1560	+	20 coinage issued by the State of Illinois, the government of the
	1561	+	21 United States of America, or the government of any foreign
	1562	+	22 country, and bullion.
	1563	+	23 (5) Until July 1, 2003 and beginning again on September 1,
	1564	+	24 2004 through August 30, 2014, graphic arts machinery and
	1565	+	25 equipment, including repair and replacement parts, both new
	1566	+	26 and used, and including that manufactured on special order or
	1567	+
	1568	+
	1569	+
	1570	+
	1571	+
	1572	+	SB1963 Enrolled - 44 - LRB103 25648 HLH 51997 b
	1573	+
	1574	+
	1575	+	SB1963 Enrolled- 45 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 45 - LRB103 25648 HLH 51997 b
	1576	+	SB1963 Enrolled - 45 - LRB103 25648 HLH 51997 b
	1577	+	1 purchased for lease, certified by the purchaser to be used
	1578	+	2 primarily for graphic arts production. Equipment includes
	1579	+	3 chemicals or chemicals acting as catalysts but only if the
	1580	+	4 chemicals or chemicals acting as catalysts effect a direct and
	1581	+	5 immediate change upon a graphic arts product. Beginning on
	1582	+	6 July 1, 2017, graphic arts machinery and equipment is included
	1583	+	7 in the manufacturing and assembling machinery and equipment
	1584	+	8 exemption under Section 2 of this Act.
	1585	+	9 (6) Personal property sold by a teacher-sponsored student
	1586	+	10 organization affiliated with an elementary or secondary school
	1587	+	11 located in Illinois.
	1588	+	12 (7) Farm machinery and equipment, both new and used,
	1589	+	13 including that manufactured on special order, certified by the
	1590	+	14 purchaser to be used primarily for production agriculture or
	1591	+	15 State or federal agricultural programs, including individual
	1592	+	16 replacement parts for the machinery and equipment, including
	1593	+	17 machinery and equipment purchased for lease, and including
	1594	+	18 implements of husbandry defined in Section 1-130 of the
	1595	+	19 Illinois Vehicle Code, farm machinery and agricultural
	1596	+	20 chemical and fertilizer spreaders, and nurse wagons required
	1597	+	21 to be registered under Section 3-809 of the Illinois Vehicle
	1598	+	22 Code, but excluding other motor vehicles required to be
	1599	+	23 registered under the Illinois Vehicle Code. Horticultural
	1600	+	24 polyhouses or hoop houses used for propagating, growing, or
	1601	+	25 overwintering plants shall be considered farm machinery and
	1602	+	26 equipment under this item (7). Agricultural chemical tender
	1603	+
	1604	+
	1605	+
	1606	+
	1607	+
	1608	+	SB1963 Enrolled - 45 - LRB103 25648 HLH 51997 b
	1609	+
	1610	+
	1611	+	SB1963 Enrolled- 46 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 46 - LRB103 25648 HLH 51997 b
	1612	+	SB1963 Enrolled - 46 - LRB103 25648 HLH 51997 b
	1613	+	1 tanks and dry boxes shall include units sold separately from a
	1614	+	2 motor vehicle required to be licensed and units sold mounted
	1615	+	3 on a motor vehicle required to be licensed if the selling price
	1616	+	4 of the tender is separately stated.
	1617	+	5 Farm machinery and equipment shall include precision
	1618	+	6 farming equipment that is installed or purchased to be
	1619	+	7 installed on farm machinery and equipment including, but not
	1620	+	8 limited to, tractors, harvesters, sprayers, planters, seeders,
	1621	+	9 or spreaders. Precision farming equipment includes, but is not
	1622	+	10 limited to, soil testing sensors, computers, monitors,
	1623	+	11 software, global positioning and mapping systems, and other
	1624	+	12 such equipment.
	1625	+	13 Farm machinery and equipment also includes computers,
	1626	+	14 sensors, software, and related equipment used primarily in the
	1627	+	15 computer-assisted operation of production agriculture
	1628	+	16 facilities, equipment, and activities such as, but not limited
	1629	+	17 to, the collection, monitoring, and correlation of animal and
	1630	+	18 crop data for the purpose of formulating animal diets and
	1631	+	19 agricultural chemicals. This item (7) is exempt from the
	1632	+	20 provisions of Section 3-55.
	1633	+	21 (8) Until June 30, 2013, fuel and petroleum products sold
	1634	+	22 to or used by an air common carrier, certified by the carrier
	1635	+	23 to be used for consumption, shipment, or storage in the
	1636	+	24 conduct of its business as an air common carrier, for a flight
	1637	+	25 destined for or returning from a location or locations outside
	1638	+	26 the United States without regard to previous or subsequent
	1639	+
	1640	+
	1641	+
	1642	+
	1643	+
	1644	+	SB1963 Enrolled - 46 - LRB103 25648 HLH 51997 b
	1645	+
	1646	+
	1647	+	SB1963 Enrolled- 47 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 47 - LRB103 25648 HLH 51997 b
	1648	+	SB1963 Enrolled - 47 - LRB103 25648 HLH 51997 b
	1649	+	1 domestic stopovers.
	1650	+	2 Beginning July 1, 2013, fuel and petroleum products sold
	1651	+	3 to or used by an air carrier, certified by the carrier to be
	1652	+	4 used for consumption, shipment, or storage in the conduct of
	1653	+	5 its business as an air common carrier, for a flight that (i) is
	1654	+	6 engaged in foreign trade or is engaged in trade between the
	1655	+	7 United States and any of its possessions and (ii) transports
	1656	+	8 at least one individual or package for hire from the city of
	1657	+	9 origination to the city of final destination on the same
	1658	+	10 aircraft, without regard to a change in the flight number of
	1659	+	11 that aircraft.
	1660	+	12 (9) Proceeds of mandatory service charges separately
	1661	+	13 stated on customers' bills for the purchase and consumption of
	1662	+	14 food and beverages, to the extent that the proceeds of the
	1663	+	15 service charge are in fact turned over as tips or as a
	1664	+	16 substitute for tips to the employees who participate directly
	1665	+	17 in preparing, serving, hosting or cleaning up the food or
	1666	+	18 beverage function with respect to which the service charge is
	1667	+	19 imposed.
	1668	+	20 (10) Until July 1, 2003, oil field exploration, drilling,
	1669	+	21 and production equipment, including (i) rigs and parts of
	1670	+	22 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
	1671	+	23 pipe and tubular goods, including casing and drill strings,
	1672	+	24 (iii) pumps and pump-jack units, (iv) storage tanks and flow
	1673	+	25 lines, (v) any individual replacement part for oil field
	1674	+	26 exploration, drilling, and production equipment, and (vi)
	1675	+
	1676	+
	1677	+
	1678	+
	1679	+
	1680	+	SB1963 Enrolled - 47 - LRB103 25648 HLH 51997 b
	1681	+
	1682	+
	1683	+	SB1963 Enrolled- 48 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 48 - LRB103 25648 HLH 51997 b
	1684	+	SB1963 Enrolled - 48 - LRB103 25648 HLH 51997 b
	1685	+	1 machinery and equipment purchased for lease; but excluding
	1686	+	2 motor vehicles required to be registered under the Illinois
	1687	+	3 Vehicle Code.
	1688	+	4 (11) Photoprocessing machinery and equipment, including
	1689	+	5 repair and replacement parts, both new and used, including
	1690	+	6 that manufactured on special order, certified by the purchaser
	1691	+	7 to be used primarily for photoprocessing, and including
	1692	+	8 photoprocessing machinery and equipment purchased for lease.
	1693	+	9 (12) Until July 1, 2028, coal and aggregate exploration,
	1694	+	10 mining, off-highway hauling, processing, maintenance, and
	1695	+	11 reclamation equipment, including replacement parts and
	1696	+	12 equipment, and including equipment purchased for lease, but
	1697	+	13 excluding motor vehicles required to be registered under the
	1698	+	14 Illinois Vehicle Code. The changes made to this Section by
	1699	+	15 Public Act 97-767 apply on and after July 1, 2003, but no claim
	1700	+	16 for credit or refund is allowed on or after August 16, 2013
	1701	+	17 (the effective date of Public Act 98-456) for such taxes paid
	1702	+	18 during the period beginning July 1, 2003 and ending on August
	1703	+	19 16, 2013 (the effective date of Public Act 98-456).
	1704	+	20 (13) Beginning January 1, 1992 and through June 30, 2016,
	1705	+	21 food for human consumption that is to be consumed off the
	1706	+	22 premises where it is sold (other than alcoholic beverages,
	1707	+	23 soft drinks and food that has been prepared for immediate
	1708	+	24 consumption) and prescription and non-prescription medicines,
	1709	+	25 drugs, medical appliances, and insulin, urine testing
	1710	+	26 materials, syringes, and needles used by diabetics, for human
	1711	+
	1712	+
	1713	+
	1714	+
	1715	+
	1716	+	SB1963 Enrolled - 48 - LRB103 25648 HLH 51997 b
	1717	+
	1718	+
	1719	+	SB1963 Enrolled- 49 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 49 - LRB103 25648 HLH 51997 b
	1720	+	SB1963 Enrolled - 49 - LRB103 25648 HLH 51997 b
	1721	+	1 use, when purchased for use by a person receiving medical
	1722	+	2 assistance under Article V of the Illinois Public Aid Code who
	1723	+	3 resides in a licensed long-term care facility, as defined in
	1724	+	4 the Nursing Home Care Act, or in a licensed facility as defined
	1725	+	5 in the ID/DD Community Care Act, the MC/DD Act, or the
	1726	+	6 Specialized Mental Health Rehabilitation Act of 2013.
	1727	+	7 (14) Semen used for artificial insemination of livestock
	1728	+	8 for direct agricultural production.
	1729	+	9 (15) Horses, or interests in horses, registered with and
	1730	+	10 meeting the requirements of any of the Arabian Horse Club
	1731	+	11 Registry of America, Appaloosa Horse Club, American Quarter
	1732	+	12 Horse Association, United States Trotting Association, or
	1733	+	13 Jockey Club, as appropriate, used for purposes of breeding or
	1734	+	14 racing for prizes. This item (15) is exempt from the
	1735	+	15 provisions of Section 3-55, and the exemption provided for
	1736	+	16 under this item (15) applies for all periods beginning May 30,
	1737	+	17 1995, but no claim for credit or refund is allowed on or after
	1738	+	18 January 1, 2008 (the effective date of Public Act 95-88) for
	1739	+	19 such taxes paid during the period beginning May 30, 2000 and
	1740	+	20 ending on January 1, 2008 (the effective date of Public Act
	1741	+	21 95-88).
	1742	+	22 (16) Computers and communications equipment utilized for
	1743	+	23 any hospital purpose and equipment used in the diagnosis,
	1744	+	24 analysis, or treatment of hospital patients sold to a lessor
	1745	+	25 who leases the equipment, under a lease of one year or longer
	1746	+	26 executed or in effect at the time of the purchase, to a
	1747	+
	1748	+
	1749	+
	1750	+
	1751	+
	1752	+	SB1963 Enrolled - 49 - LRB103 25648 HLH 51997 b
	1753	+
	1754	+
	1755	+	SB1963 Enrolled- 50 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 50 - LRB103 25648 HLH 51997 b
	1756	+	SB1963 Enrolled - 50 - LRB103 25648 HLH 51997 b
	1757	+	1 hospital that has been issued an active tax exemption
	1758	+	2 identification number by the Department under Section 1g of
	1759	+	3 the Retailers' Occupation Tax Act.
	1760	+	4 (17) Personal property sold to a lessor who leases the
	1761	+	5 property, under a lease of one year or longer executed or in
	1762	+	6 effect at the time of the purchase, to a governmental body that
	1763	+	7 has been issued an active tax exemption identification number
	1764	+	8 by the Department under Section 1g of the Retailers'
	1765	+	9 Occupation Tax Act.
	1766	+	10 (18) Beginning with taxable years ending on or after
	1767	+	11 December 31, 1995 and ending with taxable years ending on or
	1768	+	12 before December 31, 2004, personal property that is donated
	1769	+	13 for disaster relief to be used in a State or federally declared
	1770	+	14 disaster area in Illinois or bordering Illinois by a
	1771	+	15 manufacturer or retailer that is registered in this State to a
	1772	+	16 corporation, society, association, foundation, or institution
	1773	+	17 that has been issued a sales tax exemption identification
	1774	+	18 number by the Department that assists victims of the disaster
	1775	+	19 who reside within the declared disaster area.
	1776	+	20 (19) Beginning with taxable years ending on or after
	1777	+	21 December 31, 1995 and ending with taxable years ending on or
	1778	+	22 before December 31, 2004, personal property that is used in
	1779	+	23 the performance of infrastructure repairs in this State,
	1780	+	24 including but not limited to municipal roads and streets,
	1781	+	25 access roads, bridges, sidewalks, waste disposal systems,
	1782	+	26 water and sewer line extensions, water distribution and
	1783	+
	1784	+
	1785	+
	1786	+
	1787	+
	1788	+	SB1963 Enrolled - 50 - LRB103 25648 HLH 51997 b
	1789	+
	1790	+
	1791	+	SB1963 Enrolled- 51 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 51 - LRB103 25648 HLH 51997 b
	1792	+	SB1963 Enrolled - 51 - LRB103 25648 HLH 51997 b
	1793	+	1 purification facilities, storm water drainage and retention
	1794	+	2 facilities, and sewage treatment facilities, resulting from a
	1795	+	3 State or federally declared disaster in Illinois or bordering
	1796	+	4 Illinois when such repairs are initiated on facilities located
	1797	+	5 in the declared disaster area within 6 months after the
	1798	+	6 disaster.
	1799	+	7 (20) Beginning July 1, 1999, game or game birds sold at a
	1800	+	8 "game breeding and hunting preserve area" as that term is used
	1801	+	9 in the Wildlife Code. This paragraph is exempt from the
	1802	+	10 provisions of Section 3-55.
	1803	+	11 (21) A motor vehicle, as that term is defined in Section
	1804	+	12 1-146 of the Illinois Vehicle Code, that is donated to a
	1805	+	13 corporation, limited liability company, society, association,
	1806	+	14 foundation, or institution that is determined by the
	1807	+	15 Department to be organized and operated exclusively for
	1808	+	16 educational purposes. For purposes of this exemption, "a
	1809	+	17 corporation, limited liability company, society, association,
	1810	+	18 foundation, or institution organized and operated exclusively
	1811	+	19 for educational purposes" means all tax-supported public
	1812	+	20 schools, private schools that offer systematic instruction in
	1813	+	21 useful branches of learning by methods common to public
	1814	+	22 schools and that compare favorably in their scope and
	1815	+	23 intensity with the course of study presented in tax-supported
	1816	+	24 schools, and vocational or technical schools or institutes
	1817	+	25 organized and operated exclusively to provide a course of
	1818	+	26 study of not less than 6 weeks duration and designed to prepare
	1819	+
	1820	+
	1821	+
	1822	+
	1823	+
	1824	+	SB1963 Enrolled - 51 - LRB103 25648 HLH 51997 b
	1825	+
	1826	+
	1827	+	SB1963 Enrolled- 52 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 52 - LRB103 25648 HLH 51997 b
	1828	+	SB1963 Enrolled - 52 - LRB103 25648 HLH 51997 b
	1829	+	1 individuals to follow a trade or to pursue a manual,
	1830	+	2 technical, mechanical, industrial, business, or commercial
	1831	+	3 occupation.
	1832	+	4 (22) Beginning January 1, 2000, personal property,
	1833	+	5 including food, purchased through fundraising events for the
	1834	+	6 benefit of a public or private elementary or secondary school,
	1835	+	7 a group of those schools, or one or more school districts if
	1836	+	8 the events are sponsored by an entity recognized by the school
	1837	+	9 district that consists primarily of volunteers and includes
	1838	+	10 parents and teachers of the school children. This paragraph
	1839	+	11 does not apply to fundraising events (i) for the benefit of
	1840	+	12 private home instruction or (ii) for which the fundraising
	1841	+	13 entity purchases the personal property sold at the events from
	1842	+	14 another individual or entity that sold the property for the
	1843	+	15 purpose of resale by the fundraising entity and that profits
	1844	+	16 from the sale to the fundraising entity. This paragraph is
	1845	+	17 exempt from the provisions of Section 3-55.
	1846	+	18 (23) Beginning January 1, 2000 and through December 31,
	1847	+	19 2001, new or used automatic vending machines that prepare and
	1848	+	20 serve hot food and beverages, including coffee, soup, and
	1849	+	21 other items, and replacement parts for these machines.
	1850	+	22 Beginning January 1, 2002 and through June 30, 2003, machines
	1851	+	23 and parts for machines used in commercial, coin-operated
	1852	+	24 amusement and vending business if a use or occupation tax is
	1853	+	25 paid on the gross receipts derived from the use of the
	1854	+	26 commercial, coin-operated amusement and vending machines. This
	1855	+
	1856	+
	1857	+
	1858	+
	1859	+
	1860	+	SB1963 Enrolled - 52 - LRB103 25648 HLH 51997 b
	1861	+
	1862	+
	1863	+	SB1963 Enrolled- 53 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 53 - LRB103 25648 HLH 51997 b
	1864	+	SB1963 Enrolled - 53 - LRB103 25648 HLH 51997 b
	1865	+	1 paragraph is exempt from the provisions of Section 3-55.
	1866	+	2 (24) Beginning on August 2, 2001 (the effective date of
	1867	+	3 Public Act 92-227), computers and communications equipment
	1868	+	4 utilized for any hospital purpose and equipment used in the
	1869	+	5 diagnosis, analysis, or treatment of hospital patients sold to
	1870	+	6 a lessor who leases the equipment, under a lease of one year or
	1871	+	7 longer executed or in effect at the time of the purchase, to a
	1872	+	8 hospital that has been issued an active tax exemption
	1873	+	9 identification number by the Department under Section 1g of
	1874	+	10 the Retailers' Occupation Tax Act. This paragraph is exempt
	1875	+	11 from the provisions of Section 3-55.
	1876	+	12 (25) Beginning on August 2, 2001 (the effective date of
	1877	+	13 Public Act 92-227), personal property sold to a lessor who
	1878	+	14 leases the property, under a lease of one year or longer
	1879	+	15 executed or in effect at the time of the purchase, to a
	1880	+	16 governmental body that has been issued an active tax exemption
	1881	+	17 identification number by the Department under Section 1g of
	1882	+	18 the Retailers' Occupation Tax Act. This paragraph is exempt
	1883	+	19 from the provisions of Section 3-55.
	1884	+	20 (26) Beginning on January 1, 2002 and through June 30,
	1885	+	21 2016, tangible personal property purchased from an Illinois
	1886	+	22 retailer by a taxpayer engaged in centralized purchasing
	1887	+	23 activities in Illinois who will, upon receipt of the property
	1888	+	24 in Illinois, temporarily store the property in Illinois (i)
	1889	+	25 for the purpose of subsequently transporting it outside this
	1890	+	26 State for use or consumption thereafter solely outside this
	1891	+
	1892	+
	1893	+
	1894	+
	1895	+
	1896	+	SB1963 Enrolled - 53 - LRB103 25648 HLH 51997 b
	1897	+
	1898	+
	1899	+	SB1963 Enrolled- 54 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 54 - LRB103 25648 HLH 51997 b
	1900	+	SB1963 Enrolled - 54 - LRB103 25648 HLH 51997 b
	1901	+	1 State or (ii) for the purpose of being processed, fabricated,
	1902	+	2 or manufactured into, attached to, or incorporated into other
	1903	+	3 tangible personal property to be transported outside this
	1904	+	4 State and thereafter used or consumed solely outside this
	1905	+	5 State. The Director of Revenue shall, pursuant to rules
	1906	+	6 adopted in accordance with the Illinois Administrative
	1907	+	7 Procedure Act, issue a permit to any taxpayer in good standing
	1908	+	8 with the Department who is eligible for the exemption under
	1909	+	9 this paragraph (26). The permit issued under this paragraph
	1910	+	10 (26) shall authorize the holder, to the extent and in the
	1911	+	11 manner specified in the rules adopted under this Act, to
	1912	+	12 purchase tangible personal property from a retailer exempt
	1913	+	13 from the taxes imposed by this Act. Taxpayers shall maintain
	1914	+	14 all necessary books and records to substantiate the use and
	1915	+	15 consumption of all such tangible personal property outside of
	1916	+	16 the State of Illinois.
	1917	+	17 (27) Beginning January 1, 2008, tangible personal property
	1918	+	18 used in the construction or maintenance of a community water
	1919	+	19 supply, as defined under Section 3.145 of the Environmental
	1920	+	20 Protection Act, that is operated by a not-for-profit
	1921	+	21 corporation that holds a valid water supply permit issued
	1922	+	22 under Title IV of the Environmental Protection Act. This
	1923	+	23 paragraph is exempt from the provisions of Section 3-55.
	1924	+	24 (28) Tangible personal property sold to a
	1925	+	25 public-facilities corporation, as described in Section
	1926	+	26 11-65-10 of the Illinois Municipal Code, for purposes of
	1927	+
	1928	+
	1929	+
	1930	+
	1931	+
	1932	+	SB1963 Enrolled - 54 - LRB103 25648 HLH 51997 b
	1933	+
	1934	+
	1935	+	SB1963 Enrolled- 55 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 55 - LRB103 25648 HLH 51997 b
	1936	+	SB1963 Enrolled - 55 - LRB103 25648 HLH 51997 b
	1937	+	1 constructing or furnishing a municipal convention hall, but
	1938	+	2 only if the legal title to the municipal convention hall is
	1939	+	3 transferred to the municipality without any further
	1940	+	4 consideration by or on behalf of the municipality at the time
	1941	+	5 of the completion of the municipal convention hall or upon the
	1942	+	6 retirement or redemption of any bonds or other debt
	1943	+	7 instruments issued by the public-facilities corporation in
	1944	+	8 connection with the development of the municipal convention
	1945	+	9 hall. This exemption includes existing public-facilities
	1946	+	10 corporations as provided in Section 11-65-25 of the Illinois
	1947	+	11 Municipal Code. This paragraph is exempt from the provisions
	1948	+	12 of Section 3-55.
	1949	+	13 (29) Beginning January 1, 2010 and continuing through
	1950	+	14 December 31, 2029 December 31, 2024, materials, parts,
	1951	+	15 equipment, components, and furnishings incorporated into or
	1952	+	16 upon an aircraft as part of the modification, refurbishment,
	1953	+	17 completion, replacement, repair, or maintenance of the
	1954	+	18 aircraft. This exemption includes consumable supplies used in
	1955	+	19 the modification, refurbishment, completion, replacement,
	1956	+	20 repair, and maintenance of aircraft. However, until January 1,
	1957	+	21 2024, this exemption , but excludes any materials, parts,
	1958	+	22 equipment, components, and consumable supplies used in the
	1959	+	23 modification, replacement, repair, and maintenance of aircraft
	1960	+	24 engines or power plants, whether such engines or power plants
	1961	+	25 are installed or uninstalled upon any such aircraft.
	1962	+	26 "Consumable supplies" include, but are not limited to,
	1963	+
	1964	+
	1965	+
	1966	+
	1967	+
	1968	+	SB1963 Enrolled - 55 - LRB103 25648 HLH 51997 b
	1969	+
	1970	+
	1971	+	SB1963 Enrolled- 56 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 56 - LRB103 25648 HLH 51997 b
	1972	+	SB1963 Enrolled - 56 - LRB103 25648 HLH 51997 b
	1973	+	1 adhesive, tape, sandpaper, general purpose lubricants,
	1974	+	2 cleaning solution, latex gloves, and protective films.
	1975	+	3 Beginning January 1, 2010 and continuing through December
	1976	+	4 31, 2023, this This exemption applies only to the transfer of
	1977	+	5 qualifying tangible personal property incident to the
	1978	+	6 modification, refurbishment, completion, replacement, repair,
	1979	+	7 or maintenance of an aircraft by persons who (i) hold an Air
	1980	+	8 Agency Certificate and are empowered to operate an approved
	1981	+	9 repair station by the Federal Aviation Administration, (ii)
	1982	+	10 have a Class IV Rating, and (iii) conduct operations in
	1983	+	11 accordance with Part 145 of the Federal Aviation Regulations.
	1984	+	12 The exemption does not include aircraft operated by a
	1985	+	13 commercial air carrier providing scheduled passenger air
	1986	+	14 service pursuant to authority issued under Part 121 or Part
	1987	+	15 129 of the Federal Aviation Regulations. From January 1, 2024
	1988	+	16 through December 31, 2029, this exemption applies only to the
	1989	+	17 use of qualifying tangible personal property by: (A) persons
	1990	+	18 who modify, refurbish, complete, repair, replace, or maintain
	1991	+	19 aircraft and who (i) hold an Air Agency Certificate and are
	1992	+	20 empowered to operate an approved repair station by the Federal
	1993	+	21 Aviation Administration, (ii) have a Class IV Rating, and
	1994	+	22 (iii) conduct operations in accordance with Part 145 of the
	1995	+	23 Federal Aviation Regulations; and (B) persons who engage in
	1996	+	24 the modification, replacement, repair, and maintenance of
	1997	+	25 aircraft engines or power plants without regard to whether or
	1998	+	26 not those persons meet the qualifications of item (A).
	1999	+
	2000	+
	2001	+
	2002	+
	2003	+
	2004	+	SB1963 Enrolled - 56 - LRB103 25648 HLH 51997 b
	2005	+
	2006	+
	2007	+	SB1963 Enrolled- 57 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 57 - LRB103 25648 HLH 51997 b
	2008	+	SB1963 Enrolled - 57 - LRB103 25648 HLH 51997 b
	2009	+	1 The changes made to this paragraph (29) by Public Act
	2010	+	2 98-534 are declarative of existing law. It is the intent of the
	2011	+	3 General Assembly that the exemption under this paragraph (29)
	2012	+	4 applies continuously from January 1, 2010 through December 31,
	2013	+	5 2024; however, no claim for credit or refund is allowed for
	2014	+	6 taxes paid as a result of the disallowance of this exemption on
	2015	+	7 or after January 1, 2015 and prior to February 5, 2020 (the
	2016	+	8 effective date of Public Act 101-629) this amendatory Act of
	2017	+	9 the 101st General Assembly.
	2018	+	10 (30) Beginning January 1, 2017 and through December 31,
	2019	+	11 2026, menstrual pads, tampons, and menstrual cups.
	2020	+	12 (31) Tangible personal property transferred to a purchaser
	2021	+	13 who is exempt from tax by operation of federal law. This
	2022	+	14 paragraph is exempt from the provisions of Section 3-55.
	2023	+	15 (32) Qualified tangible personal property used in the
	2024	+	16 construction or operation of a data center that has been
	2025	+	17 granted a certificate of exemption by the Department of
	2026	+	18 Commerce and Economic Opportunity, whether that tangible
	2027	+	19 personal property is purchased by the owner, operator, or
	2028	+	20 tenant of the data center or by a contractor or subcontractor
	2029	+	21 of the owner, operator, or tenant. Data centers that would
	2030	+	22 have qualified for a certificate of exemption prior to January
	2031	+	23 1, 2020 had Public Act 101-31 this amendatory Act of the 101st
	2032	+	24 General Assembly been in effect, may apply for and obtain an
	2033	+	25 exemption for subsequent purchases of computer equipment or
	2034	+	26 enabling software purchased or leased to upgrade, supplement,
	2035	+
	2036	+
	2037	+
	2038	+
	2039	+
	2040	+	SB1963 Enrolled - 57 - LRB103 25648 HLH 51997 b
	2041	+
	2042	+
	2043	+	SB1963 Enrolled- 58 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 58 - LRB103 25648 HLH 51997 b
	2044	+	SB1963 Enrolled - 58 - LRB103 25648 HLH 51997 b
	2045	+	1 or replace computer equipment or enabling software purchased
	2046	+	2 or leased in the original investment that would have
	2047	+	3 qualified.
	2048	+	4 The Department of Commerce and Economic Opportunity shall
	2049	+	5 grant a certificate of exemption under this item (32) to
	2050	+	6 qualified data centers as defined by Section 605-1025 of the
	2051	+	7 Department of Commerce and Economic Opportunity Law of the
	2052	+	8 Civil Administrative Code of Illinois.
	2053	+	9 For the purposes of this item (32):
	2054	+	10 "Data center" means a building or a series of
	2055	+	11 buildings rehabilitated or constructed to house working
	2056	+	12 servers in one physical location or multiple sites within
	2057	+	13 the State of Illinois.
	2058	+	14 "Qualified tangible personal property" means:
	2059	+	15 electrical systems and equipment; climate control and
	2060	+	16 chilling equipment and systems; mechanical systems and
	2061	+	17 equipment; monitoring and secure systems; emergency
	2062	+	18 generators; hardware; computers; servers; data storage
	2063	+	19 devices; network connectivity equipment; racks; cabinets;
	2064	+	20 telecommunications cabling infrastructure; raised floor
	2065	+	21 systems; peripheral components or systems; software;
	2066	+	22 mechanical, electrical, or plumbing systems; battery
	2067	+	23 systems; cooling systems and towers; temperature control
	2068	+	24 systems; other cabling; and other data center
	2069	+	25 infrastructure equipment and systems necessary to operate
	2070	+	26 qualified tangible personal property, including fixtures;
	2071	+
	2072	+
	2073	+
	2074	+
	2075	+
	2076	+	SB1963 Enrolled - 58 - LRB103 25648 HLH 51997 b
	2077	+
	2078	+
	2079	+	SB1963 Enrolled- 59 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 59 - LRB103 25648 HLH 51997 b
	2080	+	SB1963 Enrolled - 59 - LRB103 25648 HLH 51997 b
	2081	+	1 and component parts of any of the foregoing, including
	2082	+	2 installation, maintenance, repair, refurbishment, and
	2083	+	3 replacement of qualified tangible personal property to
	2084	+	4 generate, transform, transmit, distribute, or manage
	2085	+	5 electricity necessary to operate qualified tangible
	2086	+	6 personal property; and all other tangible personal
	2087	+	7 property that is essential to the operations of a computer
	2088	+	8 data center. The term "qualified tangible personal
	2089	+	9 property" also includes building materials physically
	2090	+	10 incorporated in to the qualifying data center. To document
	2091	+	11 the exemption allowed under this Section, the retailer
	2092	+	12 must obtain from the purchaser a copy of the certificate
	2093	+	13 of eligibility issued by the Department of Commerce and
	2094	+	14 Economic Opportunity.
	2095	+	15 This item (32) is exempt from the provisions of Section
	2096	+	16 3-55.
	2097	+	17 (33) Beginning July 1, 2022, breast pumps, breast pump
	2098	+	18 collection and storage supplies, and breast pump kits. This
	2099	+	19 item (33) is exempt from the provisions of Section 3-55. As
	2100	+	20 used in this item (33):
	2101	+	21 "Breast pump" means an electrically controlled or
	2102	+	22 manually controlled pump device designed or marketed to be
	2103	+	23 used to express milk from a human breast during lactation,
	2104	+	24 including the pump device and any battery, AC adapter, or
	2105	+	25 other power supply unit that is used to power the pump
	2106	+	26 device and is packaged and sold with the pump device at the
	2107	+
	2108	+
	2109	+
	2110	+
	2111	+
	2112	+	SB1963 Enrolled - 59 - LRB103 25648 HLH 51997 b
	2113	+
	2114	+
	2115	+	SB1963 Enrolled- 60 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 60 - LRB103 25648 HLH 51997 b
	2116	+	SB1963 Enrolled - 60 - LRB103 25648 HLH 51997 b
	2117	+	1 time of sale.
	2118	+	2 "Breast pump collection and storage supplies" means
	2119	+	3 items of tangible personal property designed or marketed
	2120	+	4 to be used in conjunction with a breast pump to collect
	2121	+	5 milk expressed from a human breast and to store collected
	2122	+	6 milk until it is ready for consumption.
	2123	+	7 "Breast pump collection and storage supplies"
	2124	+	8 includes, but is not limited to: breast shields and breast
	2125	+	9 shield connectors; breast pump tubes and tubing adapters;
	2126	+	10 breast pump valves and membranes; backflow protectors and
	2127	+	11 backflow protector adaptors; bottles and bottle caps
	2128	+	12 specific to the operation of the breast pump; and breast
	2129	+	13 milk storage bags.
	2130	+	14 "Breast pump collection and storage supplies" does not
	2131	+	15 include: (1) bottles and bottle caps not specific to the
	2132	+	16 operation of the breast pump; (2) breast pump travel bags
	2133	+	17 and other similar carrying accessories, including ice
	2134	+	18 packs, labels, and other similar products; (3) breast pump
	2135	+	19 cleaning supplies; (4) nursing bras, bra pads, breast
	2136	+	20 shells, and other similar products; and (5) creams,
	2137	+	21 ointments, and other similar products that relieve
	2138	+	22 breastfeeding-related symptoms or conditions of the
	2139	+	23 breasts or nipples, unless sold as part of a breast pump
	2140	+	24 kit that is pre-packaged by the breast pump manufacturer
	2141	+	25 or distributor.
	2142	+	26 "Breast pump kit" means a kit that: (1) contains no
	2143	+
	2144	+
	2145	+
	2146	+
	2147	+
	2148	+	SB1963 Enrolled - 60 - LRB103 25648 HLH 51997 b
	2149	+
	2150	+
	2151	+	SB1963 Enrolled- 61 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 61 - LRB103 25648 HLH 51997 b
	2152	+	SB1963 Enrolled - 61 - LRB103 25648 HLH 51997 b
	2153	+	1 more than a breast pump, breast pump collection and
	2154	+	2 storage supplies, a rechargeable battery for operating the
	2155	+	3 breast pump, a breastmilk cooler, bottle stands, ice
	2156	+	4 packs, and a breast pump carrying case; and (2) is
	2157	+	5 pre-packaged as a breast pump kit by the breast pump
	2158	+	6 manufacturer or distributor.
	2159	+	7 (34) (33) Tangible personal property sold by or on behalf
	2160	+	8 of the State Treasurer pursuant to the Revised Uniform
	2161	+	9 Unclaimed Property Act. This item (34) (33) is exempt from the
	2162	+	10 provisions of Section 3-55.
	2163	+	11 (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
	2164	+	12 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
	2165	+	13 70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
	2166	+	14 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
	2167	+	15 Section 5-20. The Retailers' Occupation Tax Act is amended
	2168	+	16 by changing Section 2-5 as follows:
	2169	+	17 (35 ILCS 120/2-5)
	2170	+	18 Sec. 2-5. Exemptions. Gross receipts from proceeds from
	2171	+	19 the sale of the following tangible personal property are
	2172	+	20 exempt from the tax imposed by this Act:
	2173	+	21 (1) Farm chemicals.
	2174	+	22 (2) Farm machinery and equipment, both new and used,
	2175	+	23 including that manufactured on special order, certified by
	2176	+	24 the purchaser to be used primarily for production
	2177	+
	2178	+
	2179	+
	2180	+
	2181	+
	2182	+	SB1963 Enrolled - 61 - LRB103 25648 HLH 51997 b
	2183	+
	2184	+
	2185	+	SB1963 Enrolled- 62 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 62 - LRB103 25648 HLH 51997 b
	2186	+	SB1963 Enrolled - 62 - LRB103 25648 HLH 51997 b
	2187	+	1 agriculture or State or federal agricultural programs,
	2188	+	2 including individual replacement parts for the machinery
	2189	+	3 and equipment, including machinery and equipment purchased
	2190	+	4 for lease, and including implements of husbandry defined
	2191	+	5 in Section 1-130 of the Illinois Vehicle Code, farm
	2192	+	6 machinery and agricultural chemical and fertilizer
	2193	+	7 spreaders, and nurse wagons required to be registered
	2194	+	8 under Section 3-809 of the Illinois Vehicle Code, but
	2195	+	9 excluding other motor vehicles required to be registered
	2196	+	10 under the Illinois Vehicle Code. Horticultural polyhouses
	2197	+	11 or hoop houses used for propagating, growing, or
	2198	+	12 overwintering plants shall be considered farm machinery
	2199	+	13 and equipment under this item (2). Agricultural chemical
	2200	+	14 tender tanks and dry boxes shall include units sold
	2201	+	15 separately from a motor vehicle required to be licensed
	2202	+	16 and units sold mounted on a motor vehicle required to be
	2203	+	17 licensed, if the selling price of the tender is separately
	2204	+	18 stated.
	2205	+	19 Farm machinery and equipment shall include precision
	2206	+	20 farming equipment that is installed or purchased to be
	2207	+	21 installed on farm machinery and equipment including, but
	2208	+	22 not limited to, tractors, harvesters, sprayers, planters,
	2209	+	23 seeders, or spreaders. Precision farming equipment
	2210	+	24 includes, but is not limited to, soil testing sensors,
	2211	+	25 computers, monitors, software, global positioning and
	2212	+	26 mapping systems, and other such equipment.
	2213	+
	2214	+
	2215	+
	2216	+
	2217	+
	2218	+	SB1963 Enrolled - 62 - LRB103 25648 HLH 51997 b
	2219	+
	2220	+
	2221	+	SB1963 Enrolled- 63 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 63 - LRB103 25648 HLH 51997 b
	2222	+	SB1963 Enrolled - 63 - LRB103 25648 HLH 51997 b
	2223	+	1 Farm machinery and equipment also includes computers,
	2224	+	2 sensors, software, and related equipment used primarily in
	2225	+	3 the computer-assisted operation of production agriculture
	2226	+	4 facilities, equipment, and activities such as, but not
	2227	+	5 limited to, the collection, monitoring, and correlation of
	2228	+	6 animal and crop data for the purpose of formulating animal
	2229	+	7 diets and agricultural chemicals. This item (2) is exempt
	2230	+	8 from the provisions of Section 2-70.
	2231	+	9 (3) Until July 1, 2003, distillation machinery and
	2232	+	10 equipment, sold as a unit or kit, assembled or installed
	2233	+	11 by the retailer, certified by the user to be used only for
	2234	+	12 the production of ethyl alcohol that will be used for
	2235	+	13 consumption as motor fuel or as a component of motor fuel
	2236	+	14 for the personal use of the user, and not subject to sale
	2237	+	15 or resale.
	2238	+	16 (4) Until July 1, 2003 and beginning again September
	2239	+	17 1, 2004 through August 30, 2014, graphic arts machinery
	2240	+	18 and equipment, including repair and replacement parts,
	2241	+	19 both new and used, and including that manufactured on
	2242	+	20 special order or purchased for lease, certified by the
	2243	+	21 purchaser to be used primarily for graphic arts
	2244	+	22 production. Equipment includes chemicals or chemicals
	2245	+	23 acting as catalysts but only if the chemicals or chemicals
	2246	+	24 acting as catalysts effect a direct and immediate change
	2247	+	25 upon a graphic arts product. Beginning on July 1, 2017,
	2248	+	26 graphic arts machinery and equipment is included in the
	2249	+
	2250	+
	2251	+
	2252	+
	2253	+
	2254	+	SB1963 Enrolled - 63 - LRB103 25648 HLH 51997 b
	2255	+
	2256	+
	2257	+	SB1963 Enrolled- 64 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 64 - LRB103 25648 HLH 51997 b
	2258	+	SB1963 Enrolled - 64 - LRB103 25648 HLH 51997 b
	2259	+	1 manufacturing and assembling machinery and equipment
	2260	+	2 exemption under paragraph (14).
	2261	+	3 (5) A motor vehicle that is used for automobile
	2262	+	4 renting, as defined in the Automobile Renting Occupation
	2263	+	5 and Use Tax Act. This paragraph is exempt from the
	2264	+	6 provisions of Section 2-70.
	2265	+	7 (6) Personal property sold by a teacher-sponsored
	2266	+	8 student organization affiliated with an elementary or
	2267	+	9 secondary school located in Illinois.
	2268	+	10 (7) Until July 1, 2003, proceeds of that portion of
	2269	+	11 the selling price of a passenger car the sale of which is
	2270	+	12 subject to the Replacement Vehicle Tax.
	2271	+	13 (8) Personal property sold to an Illinois county fair
	2272	+	14 association for use in conducting, operating, or promoting
	2273	+	15 the county fair.
	2274	+	16 (9) Personal property sold to a not-for-profit arts or
	2275	+	17 cultural organization that establishes, by proof required
	2276	+	18 by the Department by rule, that it has received an
	2277	+	19 exemption under Section 501(c)(3) of the Internal Revenue
	2278	+	20 Code and that is organized and operated primarily for the
	2279	+	21 presentation or support of arts or cultural programming,
	2280	+	22 activities, or services. These organizations include, but
	2281	+	23 are not limited to, music and dramatic arts organizations
	2282	+	24 such as symphony orchestras and theatrical groups, arts
	2283	+	25 and cultural service organizations, local arts councils,
	2284	+	26 visual arts organizations, and media arts organizations.
	2285	+
	2286	+
	2287	+
	2288	+
	2289	+
	2290	+	SB1963 Enrolled - 64 - LRB103 25648 HLH 51997 b
	2291	+
	2292	+
	2293	+	SB1963 Enrolled- 65 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 65 - LRB103 25648 HLH 51997 b
	2294	+	SB1963 Enrolled - 65 - LRB103 25648 HLH 51997 b
	2295	+	1 On and after July 1, 2001 (the effective date of Public Act
	2296	+	2 92-35), however, an entity otherwise eligible for this
	2297	+	3 exemption shall not make tax-free purchases unless it has
	2298	+	4 an active identification number issued by the Department.
	2299	+	5 (10) Personal property sold by a corporation, society,
	2300	+	6 association, foundation, institution, or organization,
	2301	+	7 other than a limited liability company, that is organized
	2302	+	8 and operated as a not-for-profit service enterprise for
	2303	+	9 the benefit of persons 65 years of age or older if the
	2304	+	10 personal property was not purchased by the enterprise for
	2305	+	11 the purpose of resale by the enterprise.
	2306	+	12 (11) Personal property sold to a governmental body, to
	2307	+	13 a corporation, society, association, foundation, or
	2308	+	14 institution organized and operated exclusively for
	2309	+	15 charitable, religious, or educational purposes, or to a
	2310	+	16 not-for-profit corporation, society, association,
	2311	+	17 foundation, institution, or organization that has no
	2312	+	18 compensated officers or employees and that is organized
	2313	+	19 and operated primarily for the recreation of persons 55
	2314	+	20 years of age or older. A limited liability company may
	2315	+	21 qualify for the exemption under this paragraph only if the
	2316	+	22 limited liability company is organized and operated
	2317	+	23 exclusively for educational purposes. On and after July 1,
	2318	+	24 1987, however, no entity otherwise eligible for this
	2319	+	25 exemption shall make tax-free purchases unless it has an
	2320	+	26 active identification number issued by the Department.
	2321	+
	2322	+
	2323	+
	2324	+
	2325	+
	2326	+	SB1963 Enrolled - 65 - LRB103 25648 HLH 51997 b
	2327	+
	2328	+
	2329	+	SB1963 Enrolled- 66 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 66 - LRB103 25648 HLH 51997 b
	2330	+	SB1963 Enrolled - 66 - LRB103 25648 HLH 51997 b
	2331	+	1 (12) (Blank).
	2332	+	2 (12-5) On and after July 1, 2003 and through June 30,
	2333	+	3 2004, motor vehicles of the second division with a gross
	2334	+	4 vehicle weight in excess of 8,000 pounds that are subject
	2335	+	5 to the commercial distribution fee imposed under Section
	2336	+	6 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
	2337	+	7 2004 and through June 30, 2005, the use in this State of
	2338	+	8 motor vehicles of the second division: (i) with a gross
	2339	+	9 vehicle weight rating in excess of 8,000 pounds; (ii) that
	2340	+	10 are subject to the commercial distribution fee imposed
	2341	+	11 under Section 3-815.1 of the Illinois Vehicle Code; and
	2342	+	12 (iii) that are primarily used for commercial purposes.
	2343	+	13 Through June 30, 2005, this exemption applies to repair
	2344	+	14 and replacement parts added after the initial purchase of
	2345	+	15 such a motor vehicle if that motor vehicle is used in a
	2346	+	16 manner that would qualify for the rolling stock exemption
	2347	+	17 otherwise provided for in this Act. For purposes of this
	2348	+	18 paragraph, "used for commercial purposes" means the
	2349	+	19 transportation of persons or property in furtherance of
	2350	+	20 any commercial or industrial enterprise whether for-hire
	2351	+	21 or not.
	2352	+	22 (13) Proceeds from sales to owners, lessors, or
	2353	+	23 shippers of tangible personal property that is utilized by
	2354	+	24 interstate carriers for hire for use as rolling stock
	2355	+	25 moving in interstate commerce and equipment operated by a
	2356	+	26 telecommunications provider, licensed as a common carrier
	2357	+
	2358	+
	2359	+
	2360	+
	2361	+
	2362	+	SB1963 Enrolled - 66 - LRB103 25648 HLH 51997 b
	2363	+
	2364	+
	2365	+	SB1963 Enrolled- 67 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 67 - LRB103 25648 HLH 51997 b
	2366	+	SB1963 Enrolled - 67 - LRB103 25648 HLH 51997 b
	2367	+	1 by the Federal Communications Commission, which is
	2368	+	2 permanently installed in or affixed to aircraft moving in
	2369	+	3 interstate commerce.
	2370	+	4 (14) Machinery and equipment that will be used by the
	2371	+	5 purchaser, or a lessee of the purchaser, primarily in the
	2372	+	6 process of manufacturing or assembling tangible personal
	2373	+	7 property for wholesale or retail sale or lease, whether
	2374	+	8 the sale or lease is made directly by the manufacturer or
	2375	+	9 by some other person, whether the materials used in the
	2376	+	10 process are owned by the manufacturer or some other
	2377	+	11 person, or whether the sale or lease is made apart from or
	2378	+	12 as an incident to the seller's engaging in the service
	2379	+	13 occupation of producing machines, tools, dies, jigs,
	2380	+	14 patterns, gauges, or other similar items of no commercial
	2381	+	15 value on special order for a particular purchaser. The
	2382	+	16 exemption provided by this paragraph (14) does not include
	2383	+	17 machinery and equipment used in (i) the generation of
	2384	+	18 electricity for wholesale or retail sale; (ii) the
	2385	+	19 generation or treatment of natural or artificial gas for
	2386	+	20 wholesale or retail sale that is delivered to customers
	2387	+	21 through pipes, pipelines, or mains; or (iii) the treatment
	2388	+	22 of water for wholesale or retail sale that is delivered to
	2389	+	23 customers through pipes, pipelines, or mains. The
	2390	+	24 provisions of Public Act 98-583 are declaratory of
	2391	+	25 existing law as to the meaning and scope of this
	2392	+	26 exemption. Beginning on July 1, 2017, the exemption
	2393	+
	2394	+
	2395	+
	2396	+
	2397	+
	2398	+	SB1963 Enrolled - 67 - LRB103 25648 HLH 51997 b
	2399	+
	2400	+
	2401	+	SB1963 Enrolled- 68 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 68 - LRB103 25648 HLH 51997 b
	2402	+	SB1963 Enrolled - 68 - LRB103 25648 HLH 51997 b
	2403	+	1 provided by this paragraph (14) includes, but is not
	2404	+	2 limited to, graphic arts machinery and equipment, as
	2405	+	3 defined in paragraph (4) of this Section.
	2406	+	4 (15) Proceeds of mandatory service charges separately
	2407	+	5 stated on customers' bills for purchase and consumption of
	2408	+	6 food and beverages, to the extent that the proceeds of the
	2409	+	7 service charge are in fact turned over as tips or as a
	2410	+	8 substitute for tips to the employees who participate
	2411	+	9 directly in preparing, serving, hosting or cleaning up the
	2412	+	10 food or beverage function with respect to which the
	2413	+	11 service charge is imposed.
	2414	+	12 (16) Tangible personal property sold to a purchaser if
	2415	+	13 the purchaser is exempt from use tax by operation of
	2416	+	14 federal law. This paragraph is exempt from the provisions
	2417	+	15 of Section 2-70.
	2418	+	16 (17) Tangible personal property sold to a common
	2419	+	17 carrier by rail or motor that receives the physical
	2420	+	18 possession of the property in Illinois and that transports
	2421	+	19 the property, or shares with another common carrier in the
	2422	+	20 transportation of the property, out of Illinois on a
	2423	+	21 standard uniform bill of lading showing the seller of the
	2424	+	22 property as the shipper or consignor of the property to a
	2425	+	23 destination outside Illinois, for use outside Illinois.
	2426	+	24 (18) Legal tender, currency, medallions, or gold or
	2427	+	25 silver coinage issued by the State of Illinois, the
	2428	+	26 government of the United States of America, or the
	2429	+
	2430	+
	2431	+
	2432	+
	2433	+
	2434	+	SB1963 Enrolled - 68 - LRB103 25648 HLH 51997 b
	2435	+
	2436	+
	2437	+	SB1963 Enrolled- 69 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 69 - LRB103 25648 HLH 51997 b
	2438	+	SB1963 Enrolled - 69 - LRB103 25648 HLH 51997 b
	2439	+	1 government of any foreign country, and bullion.
	2440	+	2 (19) Until July 1, 2003, oil field exploration,
	2441	+	3 drilling, and production equipment, including (i) rigs and
	2442	+	4 parts of rigs, rotary rigs, cable tool rigs, and workover
	2443	+	5 rigs, (ii) pipe and tubular goods, including casing and
	2444	+	6 drill strings, (iii) pumps and pump-jack units, (iv)
	2445	+	7 storage tanks and flow lines, (v) any individual
	2446	+	8 replacement part for oil field exploration, drilling, and
	2447	+	9 production equipment, and (vi) machinery and equipment
	2448	+	10 purchased for lease; but excluding motor vehicles required
	2449	+	11 to be registered under the Illinois Vehicle Code.
	2450	+	12 (20) Photoprocessing machinery and equipment,
	2451	+	13 including repair and replacement parts, both new and used,
	2452	+	14 including that manufactured on special order, certified by
	2453	+	15 the purchaser to be used primarily for photoprocessing,
	2454	+	16 and including photoprocessing machinery and equipment
	2455	+	17 purchased for lease.
	2456	+	18 (21) Until July 1, 2028, coal and aggregate
	2457	+	19 exploration, mining, off-highway hauling, processing,
	2458	+	20 maintenance, and reclamation equipment, including
	2459	+	21 replacement parts and equipment, and including equipment
	2460	+	22 purchased for lease, but excluding motor vehicles required
	2461	+	23 to be registered under the Illinois Vehicle Code. The
	2462	+	24 changes made to this Section by Public Act 97-767 apply on
	2463	+	25 and after July 1, 2003, but no claim for credit or refund
	2464	+	26 is allowed on or after August 16, 2013 (the effective date
	2465	+
	2466	+
	2467	+
	2468	+
	2469	+
	2470	+	SB1963 Enrolled - 69 - LRB103 25648 HLH 51997 b
	2471	+
	2472	+
	2473	+	SB1963 Enrolled- 70 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 70 - LRB103 25648 HLH 51997 b
	2474	+	SB1963 Enrolled - 70 - LRB103 25648 HLH 51997 b
	2475	+	1 of Public Act 98-456) for such taxes paid during the
	2476	+	2 period beginning July 1, 2003 and ending on August 16,
	2477	+	3 2013 (the effective date of Public Act 98-456).
	2478	+	4 (22) Until June 30, 2013, fuel and petroleum products
	2479	+	5 sold to or used by an air carrier, certified by the carrier
	2480	+	6 to be used for consumption, shipment, or storage in the
	2481	+	7 conduct of its business as an air common carrier, for a
	2482	+	8 flight destined for or returning from a location or
	2483	+	9 locations outside the United States without regard to
	2484	+	10 previous or subsequent domestic stopovers.
	2485	+	11 Beginning July 1, 2013, fuel and petroleum products
	2486	+	12 sold to or used by an air carrier, certified by the carrier
	2487	+	13 to be used for consumption, shipment, or storage in the
	2488	+	14 conduct of its business as an air common carrier, for a
	2489	+	15 flight that (i) is engaged in foreign trade or is engaged
	2490	+	16 in trade between the United States and any of its
	2491	+	17 possessions and (ii) transports at least one individual or
	2492	+	18 package for hire from the city of origination to the city
	2493	+	19 of final destination on the same aircraft, without regard
	2494	+	20 to a change in the flight number of that aircraft.
	2495	+	21 (23) A transaction in which the purchase order is
	2496	+	22 received by a florist who is located outside Illinois, but
	2497	+	23 who has a florist located in Illinois deliver the property
	2498	+	24 to the purchaser or the purchaser's donee in Illinois.
	2499	+	25 (24) Fuel consumed or used in the operation of ships,
	2500	+	26 barges, or vessels that are used primarily in or for the
	2501	+
	2502	+
	2503	+
	2504	+
	2505	+
	2506	+	SB1963 Enrolled - 70 - LRB103 25648 HLH 51997 b
	2507	+
	2508	+
	2509	+	SB1963 Enrolled- 71 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 71 - LRB103 25648 HLH 51997 b
	2510	+	SB1963 Enrolled - 71 - LRB103 25648 HLH 51997 b
	2511	+	1 transportation of property or the conveyance of persons
	2512	+	2 for hire on rivers bordering on this State if the fuel is
	2513	+	3 delivered by the seller to the purchaser's barge, ship, or
	2514	+	4 vessel while it is afloat upon that bordering river.
	2515	+	5 (25) Except as provided in item (25-5) of this
	2516	+	6 Section, a motor vehicle sold in this State to a
	2517	+	7 nonresident even though the motor vehicle is delivered to
	2518	+	8 the nonresident in this State, if the motor vehicle is not
	2519	+	9 to be titled in this State, and if a drive-away permit is
	2520	+	10 issued to the motor vehicle as provided in Section 3-603
	2521	+	11 of the Illinois Vehicle Code or if the nonresident
	2522	+	12 purchaser has vehicle registration plates to transfer to
	2523	+	13 the motor vehicle upon returning to his or her home state.
	2524	+	14 The issuance of the drive-away permit or having the
	2525	+	15 out-of-state registration plates to be transferred is
	2526	+	16 prima facie evidence that the motor vehicle will not be
	2527	+	17 titled in this State.
	2528	+	18 (25-5) The exemption under item (25) does not apply if
	2529	+	19 the state in which the motor vehicle will be titled does
	2530	+	20 not allow a reciprocal exemption for a motor vehicle sold
	2531	+	21 and delivered in that state to an Illinois resident but
	2532	+	22 titled in Illinois. The tax collected under this Act on
	2533	+	23 the sale of a motor vehicle in this State to a resident of
	2534	+	24 another state that does not allow a reciprocal exemption
	2535	+	25 shall be imposed at a rate equal to the state's rate of tax
	2536	+	26 on taxable property in the state in which the purchaser is
	2537	+
	2538	+
	2539	+
	2540	+
	2541	+
	2542	+	SB1963 Enrolled - 71 - LRB103 25648 HLH 51997 b
	2543	+
	2544	+
	2545	+	SB1963 Enrolled- 72 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 72 - LRB103 25648 HLH 51997 b
	2546	+	SB1963 Enrolled - 72 - LRB103 25648 HLH 51997 b
	2547	+	1 a resident, except that the tax shall not exceed the tax
	2548	+	2 that would otherwise be imposed under this Act. At the
	2549	+	3 time of the sale, the purchaser shall execute a statement,
	2550	+	4 signed under penalty of perjury, of his or her intent to
	2551	+	5 title the vehicle in the state in which the purchaser is a
	2552	+	6 resident within 30 days after the sale and of the fact of
	2553	+	7 the payment to the State of Illinois of tax in an amount
	2554	+	8 equivalent to the state's rate of tax on taxable property
	2555	+	9 in his or her state of residence and shall submit the
	2556	+	10 statement to the appropriate tax collection agency in his
	2557	+	11 or her state of residence. In addition, the retailer must
	2558	+	12 retain a signed copy of the statement in his or her
	2559	+	13 records. Nothing in this item shall be construed to
	2560	+	14 require the removal of the vehicle from this state
	2561	+	15 following the filing of an intent to title the vehicle in
	2562	+	16 the purchaser's state of residence if the purchaser titles
	2563	+	17 the vehicle in his or her state of residence within 30 days
	2564	+	18 after the date of sale. The tax collected under this Act in
	2565	+	19 accordance with this item (25-5) shall be proportionately
	2566	+	20 distributed as if the tax were collected at the 6.25%
	2567	+	21 general rate imposed under this Act.
	2568	+	22 (25-7) Beginning on July 1, 2007, no tax is imposed
	2569	+	23 under this Act on the sale of an aircraft, as defined in
	2570	+	24 Section 3 of the Illinois Aeronautics Act, if all of the
	2571	+	25 following conditions are met:
	2572	+	26 (1) the aircraft leaves this State within 15 days
	2573	+
	2574	+
	2575	+
	2576	+
	2577	+
	2578	+	SB1963 Enrolled - 72 - LRB103 25648 HLH 51997 b
	2579	+
	2580	+
	2581	+	SB1963 Enrolled- 73 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 73 - LRB103 25648 HLH 51997 b
	2582	+	SB1963 Enrolled - 73 - LRB103 25648 HLH 51997 b
	2583	+	1 after the later of either the issuance of the final
	2584	+	2 billing for the sale of the aircraft, or the
	2585	+	3 authorized approval for return to service, completion
	2586	+	4 of the maintenance record entry, and completion of the
	2587	+	5 test flight and ground test for inspection, as
	2588	+	6 required by 14 CFR C.F.R. 91.407;
	2589	+	7 (2) the aircraft is not based or registered in
	2590	+	8 this State after the sale of the aircraft; and
	2591	+	9 (3) the seller retains in his or her books and
	2592	+	10 records and provides to the Department a signed and
	2593	+	11 dated certification from the purchaser, on a form
	2594	+	12 prescribed by the Department, certifying that the
	2595	+	13 requirements of this item (25-7) are met. The
	2596	+	14 certificate must also include the name and address of
	2597	+	15 the purchaser, the address of the location where the
	2598	+	16 aircraft is to be titled or registered, the address of
	2599	+	17 the primary physical location of the aircraft, and
	2600	+	18 other information that the Department may reasonably
	2601	+	19 require.
	2602	+	20 For purposes of this item (25-7):
	2603	+	21 "Based in this State" means hangared, stored, or
	2604	+	22 otherwise used, excluding post-sale customizations as
	2605	+	23 defined in this Section, for 10 or more days in each
	2606	+	24 12-month period immediately following the date of the sale
	2607	+	25 of the aircraft.
	2608	+	26 "Registered in this State" means an aircraft
	2609	+
	2610	+
	2611	+
	2612	+
	2613	+
	2614	+	SB1963 Enrolled - 73 - LRB103 25648 HLH 51997 b
	2615	+
	2616	+
	2617	+	SB1963 Enrolled- 74 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 74 - LRB103 25648 HLH 51997 b
	2618	+	SB1963 Enrolled - 74 - LRB103 25648 HLH 51997 b
	2619	+	1 registered with the Department of Transportation,
	2620	+	2 Aeronautics Division, or titled or registered with the
	2621	+	3 Federal Aviation Administration to an address located in
	2622	+	4 this State.
	2623	+	5 This paragraph (25-7) is exempt from the provisions of
	2624	+	6 Section 2-70.
	2625	+	7 (26) Semen used for artificial insemination of
	2626	+	8 livestock for direct agricultural production.
	2627	+	9 (27) Horses, or interests in horses, registered with
	2628	+	10 and meeting the requirements of any of the Arabian Horse
	2629	+	11 Club Registry of America, Appaloosa Horse Club, American
	2630	+	12 Quarter Horse Association, United States Trotting
	2631	+	13 Association, or Jockey Club, as appropriate, used for
	2632	+	14 purposes of breeding or racing for prizes. This item (27)
	2633	+	15 is exempt from the provisions of Section 2-70, and the
	2634	+	16 exemption provided for under this item (27) applies for
	2635	+	17 all periods beginning May 30, 1995, but no claim for
	2636	+	18 credit or refund is allowed on or after January 1, 2008
	2637	+	19 (the effective date of Public Act 95-88) for such taxes
	2638	+	20 paid during the period beginning May 30, 2000 and ending
	2639	+	21 on January 1, 2008 (the effective date of Public Act
	2640	+	22 95-88).
	2641	+	23 (28) Computers and communications equipment utilized
	2642	+	24 for any hospital purpose and equipment used in the
	2643	+	25 diagnosis, analysis, or treatment of hospital patients
	2644	+	26 sold to a lessor who leases the equipment, under a lease of
	2645	+
	2646	+
	2647	+
	2648	+
	2649	+
	2650	+	SB1963 Enrolled - 74 - LRB103 25648 HLH 51997 b
	2651	+
	2652	+
	2653	+	SB1963 Enrolled- 75 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 75 - LRB103 25648 HLH 51997 b
	2654	+	SB1963 Enrolled - 75 - LRB103 25648 HLH 51997 b
	2655	+	1 one year or longer executed or in effect at the time of the
	2656	+	2 purchase, to a hospital that has been issued an active tax
	2657	+	3 exemption identification number by the Department under
	2658	+	4 Section 1g of this Act.
	2659	+	5 (29) Personal property sold to a lessor who leases the
	2660	+	6 property, under a lease of one year or longer executed or
	2661	+	7 in effect at the time of the purchase, to a governmental
	2662	+	8 body that has been issued an active tax exemption
	2663	+	9 identification number by the Department under Section 1g
	2664	+	10 of this Act.
	2665	+	11 (30) Beginning with taxable years ending on or after
	2666	+	12 December 31, 1995 and ending with taxable years ending on
	2667	+	13 or before December 31, 2004, personal property that is
	2668	+	14 donated for disaster relief to be used in a State or
	2669	+	15 federally declared disaster area in Illinois or bordering
	2670	+	16 Illinois by a manufacturer or retailer that is registered
	2671	+	17 in this State to a corporation, society, association,
	2672	+	18 foundation, or institution that has been issued a sales
	2673	+	19 tax exemption identification number by the Department that
	2674	+	20 assists victims of the disaster who reside within the
	2675	+	21 declared disaster area.
	2676	+	22 (31) Beginning with taxable years ending on or after
	2677	+	23 December 31, 1995 and ending with taxable years ending on
	2678	+	24 or before December 31, 2004, personal property that is
	2679	+	25 used in the performance of infrastructure repairs in this
	2680	+	26 State, including but not limited to municipal roads and
	2681	+
	2682	+
	2683	+
	2684	+
	2685	+
	2686	+	SB1963 Enrolled - 75 - LRB103 25648 HLH 51997 b
	2687	+
	2688	+
	2689	+	SB1963 Enrolled- 76 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 76 - LRB103 25648 HLH 51997 b
	2690	+	SB1963 Enrolled - 76 - LRB103 25648 HLH 51997 b
	2691	+	1 streets, access roads, bridges, sidewalks, waste disposal
	2692	+	2 systems, water and sewer line extensions, water
	2693	+	3 distribution and purification facilities, storm water
	2694	+	4 drainage and retention facilities, and sewage treatment
	2695	+	5 facilities, resulting from a State or federally declared
	2696	+	6 disaster in Illinois or bordering Illinois when such
	2697	+	7 repairs are initiated on facilities located in the
	2698	+	8 declared disaster area within 6 months after the disaster.
	2699	+	9 (32) Beginning July 1, 1999, game or game birds sold
	2700	+	10 at a "game breeding and hunting preserve area" as that
	2701	+	11 term is used in the Wildlife Code. This paragraph is
	2702	+	12 exempt from the provisions of Section 2-70.
	2703	+	13 (33) A motor vehicle, as that term is defined in
	2704	+	14 Section 1-146 of the Illinois Vehicle Code, that is
	2705	+	15 donated to a corporation, limited liability company,
	2706	+	16 society, association, foundation, or institution that is
	2707	+	17 determined by the Department to be organized and operated
	2708	+	18 exclusively for educational purposes. For purposes of this
	2709	+	19 exemption, "a corporation, limited liability company,
	2710	+	20 society, association, foundation, or institution organized
	2711	+	21 and operated exclusively for educational purposes" means
	2712	+	22 all tax-supported public schools, private schools that
	2713	+	23 offer systematic instruction in useful branches of
	2714	+	24 learning by methods common to public schools and that
	2715	+	25 compare favorably in their scope and intensity with the
	2716	+	26 course of study presented in tax-supported schools, and
	2717	+
	2718	+
	2719	+
	2720	+
	2721	+
	2722	+	SB1963 Enrolled - 76 - LRB103 25648 HLH 51997 b
	2723	+
	2724	+
	2725	+	SB1963 Enrolled- 77 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 77 - LRB103 25648 HLH 51997 b
	2726	+	SB1963 Enrolled - 77 - LRB103 25648 HLH 51997 b
	2727	+	1 vocational or technical schools or institutes organized
	2728	+	2 and operated exclusively to provide a course of study of
	2729	+	3 not less than 6 weeks duration and designed to prepare
	2730	+	4 individuals to follow a trade or to pursue a manual,
	2731	+	5 technical, mechanical, industrial, business, or commercial
	2732	+	6 occupation.
	2733	+	7 (34) Beginning January 1, 2000, personal property,
	2734	+	8 including food, purchased through fundraising events for
	2735	+	9 the benefit of a public or private elementary or secondary
	2736	+	10 school, a group of those schools, or one or more school
	2737	+	11 districts if the events are sponsored by an entity
	2738	+	12 recognized by the school district that consists primarily
	2739	+	13 of volunteers and includes parents and teachers of the
	2740	+	14 school children. This paragraph does not apply to
	2741	+	15 fundraising events (i) for the benefit of private home
	2742	+	16 instruction or (ii) for which the fundraising entity
	2743	+	17 purchases the personal property sold at the events from
	2744	+	18 another individual or entity that sold the property for
	2745	+	19 the purpose of resale by the fundraising entity and that
	2746	+	20 profits from the sale to the fundraising entity. This
	2747	+	21 paragraph is exempt from the provisions of Section 2-70.
	2748	+	22 (35) Beginning January 1, 2000 and through December
	2749	+	23 31, 2001, new or used automatic vending machines that
	2750	+	24 prepare and serve hot food and beverages, including
	2751	+	25 coffee, soup, and other items, and replacement parts for
	2752	+	26 these machines. Beginning January 1, 2002 and through June
	2753	+
	2754	+
	2755	+
	2756	+
	2757	+
	2758	+	SB1963 Enrolled - 77 - LRB103 25648 HLH 51997 b
	2759	+
	2760	+
	2761	+	SB1963 Enrolled- 78 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 78 - LRB103 25648 HLH 51997 b
	2762	+	SB1963 Enrolled - 78 - LRB103 25648 HLH 51997 b
	2763	+	1 30, 2003, machines and parts for machines used in
	2764	+	2 commercial, coin-operated amusement and vending business
	2765	+	3 if a use or occupation tax is paid on the gross receipts
	2766	+	4 derived from the use of the commercial, coin-operated
	2767	+	5 amusement and vending machines. This paragraph is exempt
	2768	+	6 from the provisions of Section 2-70.
	2769	+	7 (35-5) Beginning August 23, 2001 and through June 30,
	2770	+	8 2016, food for human consumption that is to be consumed
	2771	+	9 off the premises where it is sold (other than alcoholic
	2772	+	10 beverages, soft drinks, and food that has been prepared
	2773	+	11 for immediate consumption) and prescription and
	2774	+	12 nonprescription medicines, drugs, medical appliances, and
	2775	+	13 insulin, urine testing materials, syringes, and needles
	2776	+	14 used by diabetics, for human use, when purchased for use
	2777	+	15 by a person receiving medical assistance under Article V
	2778	+	16 of the Illinois Public Aid Code who resides in a licensed
	2779	+	17 long-term care facility, as defined in the Nursing Home
	2780	+	18 Care Act, or a licensed facility as defined in the ID/DD
	2781	+	19 Community Care Act, the MC/DD Act, or the Specialized
	2782	+	20 Mental Health Rehabilitation Act of 2013.
	2783	+	21 (36) Beginning August 2, 2001, computers and
	2784	+	22 communications equipment utilized for any hospital purpose
	2785	+	23 and equipment used in the diagnosis, analysis, or
	2786	+	24 treatment of hospital patients sold to a lessor who leases
	2787	+	25 the equipment, under a lease of one year or longer
	2788	+	26 executed or in effect at the time of the purchase, to a
	2789	+
	2790	+
	2791	+
	2792	+
	2793	+
	2794	+	SB1963 Enrolled - 78 - LRB103 25648 HLH 51997 b
	2795	+
	2796	+
	2797	+	SB1963 Enrolled- 79 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 79 - LRB103 25648 HLH 51997 b
	2798	+	SB1963 Enrolled - 79 - LRB103 25648 HLH 51997 b
	2799	+	1 hospital that has been issued an active tax exemption
	2800	+	2 identification number by the Department under Section 1g
	2801	+	3 of this Act. This paragraph is exempt from the provisions
	2802	+	4 of Section 2-70.
	2803	+	5 (37) Beginning August 2, 2001, personal property sold
	2804	+	6 to a lessor who leases the property, under a lease of one
	2805	+	7 year or longer executed or in effect at the time of the
	2806	+	8 purchase, to a governmental body that has been issued an
	2807	+	9 active tax exemption identification number by the
	2808	+	10 Department under Section 1g of this Act. This paragraph is
	2809	+	11 exempt from the provisions of Section 2-70.
	2810	+	12 (38) Beginning on January 1, 2002 and through June 30,
	2811	+	13 2016, tangible personal property purchased from an
	2812	+	14 Illinois retailer by a taxpayer engaged in centralized
	2813	+	15 purchasing activities in Illinois who will, upon receipt
	2814	+	16 of the property in Illinois, temporarily store the
	2815	+	17 property in Illinois (i) for the purpose of subsequently
	2816	+	18 transporting it outside this State for use or consumption
	2817	+	19 thereafter solely outside this State or (ii) for the
	2818	+	20 purpose of being processed, fabricated, or manufactured
	2819	+	21 into, attached to, or incorporated into other tangible
	2820	+	22 personal property to be transported outside this State and
	2821	+	23 thereafter used or consumed solely outside this State. The
	2822	+	24 Director of Revenue shall, pursuant to rules adopted in
	2823	+	25 accordance with the Illinois Administrative Procedure Act,
	2824	+	26 issue a permit to any taxpayer in good standing with the
	2825	+
	2826	+
	2827	+
	2828	+
	2829	+
	2830	+	SB1963 Enrolled - 79 - LRB103 25648 HLH 51997 b
	2831	+
	2832	+
	2833	+	SB1963 Enrolled- 80 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 80 - LRB103 25648 HLH 51997 b
	2834	+	SB1963 Enrolled - 80 - LRB103 25648 HLH 51997 b
	2835	+	1 Department who is eligible for the exemption under this
	2836	+	2 paragraph (38). The permit issued under this paragraph
	2837	+	3 (38) shall authorize the holder, to the extent and in the
	2838	+	4 manner specified in the rules adopted under this Act, to
	2839	+	5 purchase tangible personal property from a retailer exempt
	2840	+	6 from the taxes imposed by this Act. Taxpayers shall
	2841	+	7 maintain all necessary books and records to substantiate
	2842	+	8 the use and consumption of all such tangible personal
	2843	+	9 property outside of the State of Illinois.
	2844	+	10 (39) Beginning January 1, 2008, tangible personal
	2845	+	11 property used in the construction or maintenance of a
	2846	+	12 community water supply, as defined under Section 3.145 of
	2847	+	13 the Environmental Protection Act, that is operated by a
	2848	+	14 not-for-profit corporation that holds a valid water supply
	2849	+	15 permit issued under Title IV of the Environmental
	2850	+	16 Protection Act. This paragraph is exempt from the
	2851	+	17 provisions of Section 2-70.
	2852	+	18 (40) Beginning January 1, 2010 and continuing through
	2853	+	19 December 31, 2029 December 31, 2024, materials, parts,
	2854	+	20 equipment, components, and furnishings incorporated into
	2855	+	21 or upon an aircraft as part of the modification,
	2856	+	22 refurbishment, completion, replacement, repair, or
	2857	+	23 maintenance of the aircraft. This exemption includes
	2858	+	24 consumable supplies used in the modification,
	2859	+	25 refurbishment, completion, replacement, repair, and
	2860	+	26 maintenance of aircraft. However, until January 1, 2024,
	2861	+
	2862	+
	2863	+
	2864	+
	2865	+
	2866	+	SB1963 Enrolled - 80 - LRB103 25648 HLH 51997 b
	2867	+
	2868	+
	2869	+	SB1963 Enrolled- 81 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 81 - LRB103 25648 HLH 51997 b
	2870	+	SB1963 Enrolled - 81 - LRB103 25648 HLH 51997 b
	2871	+	1 this exemption , but excludes any materials, parts,
	2872	+	2 equipment, components, and consumable supplies used in the
	2873	+	3 modification, replacement, repair, and maintenance of
	2874	+	4 aircraft engines or power plants, whether such engines or
	2875	+	5 power plants are installed or uninstalled upon any such
	2876	+	6 aircraft. "Consumable supplies" include, but are not
	2877	+	7 limited to, adhesive, tape, sandpaper, general purpose
	2878	+	8 lubricants, cleaning solution, latex gloves, and
	2879	+	9 protective films.
	2880	+	10 Beginning January 1, 2010 and continuing through
	2881	+	11 December 31, 2023, this This exemption applies only to the
	2882	+	12 sale of qualifying tangible personal property to persons
	2883	+	13 who modify, refurbish, complete, replace, or maintain an
	2884	+	14 aircraft and who (i) hold an Air Agency Certificate and
	2885	+	15 are empowered to operate an approved repair station by the
	2886	+	16 Federal Aviation Administration, (ii) have a Class IV
	2887	+	17 Rating, and (iii) conduct operations in accordance with
	2888	+	18 Part 145 of the Federal Aviation Regulations. The
	2889	+	19 exemption does not include aircraft operated by a
	2890	+	20 commercial air carrier providing scheduled passenger air
	2891	+	21 service pursuant to authority issued under Part 121 or
	2892	+	22 Part 129 of the Federal Aviation Regulations. From January
	2893	+	23 1, 2024 through December 31, 2029, this exemption applies
	2894	+	24 only to the use of qualifying tangible personal property
	2895	+	25 by: (A) persons who modify, refurbish, complete, repair,
	2896	+	26 replace, or maintain aircraft and who (i) hold an Air
	2897	+
	2898	+
	2899	+
	2900	+
	2901	+
	2902	+	SB1963 Enrolled - 81 - LRB103 25648 HLH 51997 b
	2903	+
	2904	+
	2905	+	SB1963 Enrolled- 82 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 82 - LRB103 25648 HLH 51997 b
	2906	+	SB1963 Enrolled - 82 - LRB103 25648 HLH 51997 b
	2907	+	1 Agency Certificate and are empowered to operate an
	2908	+	2 approved repair station by the Federal Aviation
	2909	+	3 Administration, (ii) have a Class IV Rating, and (iii)
	2910	+	4 conduct operations in accordance with Part 145 of the
	2911	+	5 Federal Aviation Regulations; and (B) persons who engage
	2912	+	6 in the modification, replacement, repair, and maintenance
	2913	+	7 of aircraft engines or power plants without regard to
	2914	+	8 whether or not those persons meet the qualifications of
	2915	+	9 item (A).
	2916	+	10 The changes made to this paragraph (40) by Public Act
	2917	+	11 98-534 are declarative of existing law. It is the intent
	2918	+	12 of the General Assembly that the exemption under this
	2919	+	13 paragraph (40) applies continuously from January 1, 2010
	2920	+	14 through December 31, 2024; however, no claim for credit or
	2921	+	15 refund is allowed for taxes paid as a result of the
	2922	+	16 disallowance of this exemption on or after January 1, 2015
	2923	+	17 and prior to February 5, 2020 (the effective date of
	2924	+	18 Public Act 101-629) this amendatory Act of the 101st
	2925	+	19 General Assembly.
	2926	+	20 (41) Tangible personal property sold to a
	2927	+	21 public-facilities corporation, as described in Section
	2928	+	22 11-65-10 of the Illinois Municipal Code, for purposes of
	2929	+	23 constructing or furnishing a municipal convention hall,
	2930	+	24 but only if the legal title to the municipal convention
	2931	+	25 hall is transferred to the municipality without any
	2932	+	26 further consideration by or on behalf of the municipality
	2933	+
	2934	+
	2935	+
	2936	+
	2937	+
	2938	+	SB1963 Enrolled - 82 - LRB103 25648 HLH 51997 b
	2939	+
	2940	+
	2941	+	SB1963 Enrolled- 83 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 83 - LRB103 25648 HLH 51997 b
	2942	+	SB1963 Enrolled - 83 - LRB103 25648 HLH 51997 b
	2943	+	1 at the time of the completion of the municipal convention
	2944	+	2 hall or upon the retirement or redemption of any bonds or
	2945	+	3 other debt instruments issued by the public-facilities
	2946	+	4 corporation in connection with the development of the
	2947	+	5 municipal convention hall. This exemption includes
	2948	+	6 existing public-facilities corporations as provided in
	2949	+	7 Section 11-65-25 of the Illinois Municipal Code. This
	2950	+	8 paragraph is exempt from the provisions of Section 2-70.
	2951	+	9 (42) Beginning January 1, 2017 and through December
	2952	+	10 31, 2026, menstrual pads, tampons, and menstrual cups.
	2953	+	11 (43) Merchandise that is subject to the Rental
	2954	+	12 Purchase Agreement Occupation and Use Tax. The purchaser
	2955	+	13 must certify that the item is purchased to be rented
	2956	+	14 subject to a rental purchase agreement, as defined in the
	2957	+	15 Rental Purchase Agreement Act, and provide proof of
	2958	+	16 registration under the Rental Purchase Agreement
	2959	+	17 Occupation and Use Tax Act. This paragraph is exempt from
	2960	+	18 the provisions of Section 2-70.
	2961	+	19 (44) Qualified tangible personal property used in the
	2962	+	20 construction or operation of a data center that has been
	2963	+	21 granted a certificate of exemption by the Department of
	2964	+	22 Commerce and Economic Opportunity, whether that tangible
	2965	+	23 personal property is purchased by the owner, operator, or
	2966	+	24 tenant of the data center or by a contractor or
	2967	+	25 subcontractor of the owner, operator, or tenant. Data
	2968	+	26 centers that would have qualified for a certificate of
	2969	+
	2970	+
	2971	+
	2972	+
	2973	+
	2974	+	SB1963 Enrolled - 83 - LRB103 25648 HLH 51997 b
	2975	+
	2976	+
	2977	+	SB1963 Enrolled- 84 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 84 - LRB103 25648 HLH 51997 b
	2978	+	SB1963 Enrolled - 84 - LRB103 25648 HLH 51997 b
	2979	+	1 exemption prior to January 1, 2020 had Public Act 101-31
	2980	+	2 this amendatory Act of the 101st General Assembly been in
	2981	+	3 effect, may apply for and obtain an exemption for
	2982	+	4 subsequent purchases of computer equipment or enabling
	2983	+	5 software purchased or leased to upgrade, supplement, or
	2984	+	6 replace computer equipment or enabling software purchased
	2985	+	7 or leased in the original investment that would have
	2986	+	8 qualified.
	2987	+	9 The Department of Commerce and Economic Opportunity
	2988	+	10 shall grant a certificate of exemption under this item
	2989	+	11 (44) to qualified data centers as defined by Section
	2990	+	12 605-1025 of the Department of Commerce and Economic
	2991	+	13 Opportunity Law of the Civil Administrative Code of
	2992	+	14 Illinois.
	2993	+	15 For the purposes of this item (44):
	2994	+	16 "Data center" means a building or a series of
	2995	+	17 buildings rehabilitated or constructed to house
	2996	+	18 working servers in one physical location or multiple
	2997	+	19 sites within the State of Illinois.
	2998	+	20 "Qualified tangible personal property" means:
	2999	+	21 electrical systems and equipment; climate control and
	3000	+	22 chilling equipment and systems; mechanical systems and
	3001	+	23 equipment; monitoring and secure systems; emergency
	3002	+	24 generators; hardware; computers; servers; data storage
	3003	+	25 devices; network connectivity equipment; racks;
	3004	+	26 cabinets; telecommunications cabling infrastructure;
	3005	+
	3006	+
	3007	+
	3008	+
	3009	+
	3010	+	SB1963 Enrolled - 84 - LRB103 25648 HLH 51997 b
	3011	+
	3012	+
	3013	+	SB1963 Enrolled- 85 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 85 - LRB103 25648 HLH 51997 b
	3014	+	SB1963 Enrolled - 85 - LRB103 25648 HLH 51997 b
	3015	+	1 raised floor systems; peripheral components or
	3016	+	2 systems; software; mechanical, electrical, or plumbing
	3017	+	3 systems; battery systems; cooling systems and towers;
	3018	+	4 temperature control systems; other cabling; and other
	3019	+	5 data center infrastructure equipment and systems
	3020	+	6 necessary to operate qualified tangible personal
	3021	+	7 property, including fixtures; and component parts of
	3022	+	8 any of the foregoing, including installation,
	3023	+	9 maintenance, repair, refurbishment, and replacement of
	3024	+	10 qualified tangible personal property to generate,
	3025	+	11 transform, transmit, distribute, or manage electricity
	3026	+	12 necessary to operate qualified tangible personal
	3027	+	13 property; and all other tangible personal property
	3028	+	14 that is essential to the operations of a computer data
	3029	+	15 center. The term "qualified tangible personal
	3030	+	16 property" also includes building materials physically
	3031	+	17 incorporated into the qualifying data center. To
	3032	+	18 document the exemption allowed under this Section, the
	3033	+	19 retailer must obtain from the purchaser a copy of the
	3034	+	20 certificate of eligibility issued by the Department of
	3035	+	21 Commerce and Economic Opportunity.
	3036	+	22 This item (44) is exempt from the provisions of
	3037	+	23 Section 2-70.
	3038	+	24 (45) Beginning January 1, 2020 and through December
	3039	+	25 31, 2020, sales of tangible personal property made by a
	3040	+	26 marketplace seller over a marketplace for which tax is due
	3041	+
	3042	+
	3043	+
	3044	+
	3045	+
	3046	+	SB1963 Enrolled - 85 - LRB103 25648 HLH 51997 b
	3047	+
	3048	+
	3049	+	SB1963 Enrolled- 86 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 86 - LRB103 25648 HLH 51997 b
	3050	+	SB1963 Enrolled - 86 - LRB103 25648 HLH 51997 b
	3051	+	1 under this Act but for which use tax has been collected and
	3052	+	2 remitted to the Department by a marketplace facilitator
	3053	+	3 under Section 2d of the Use Tax Act are exempt from tax
	3054	+	4 under this Act. A marketplace seller claiming this
	3055	+	5 exemption shall maintain books and records demonstrating
	3056	+	6 that the use tax on such sales has been collected and
	3057	+	7 remitted by a marketplace facilitator. Marketplace sellers
	3058	+	8 that have properly remitted tax under this Act on such
	3059	+	9 sales may file a claim for credit as provided in Section 6
	3060	+	10 of this Act. No claim is allowed, however, for such taxes
	3061	+	11 for which a credit or refund has been issued to the
	3062	+	12 marketplace facilitator under the Use Tax Act, or for
	3063	+	13 which the marketplace facilitator has filed a claim for
	3064	+	14 credit or refund under the Use Tax Act.
	3065	+	15 (46) Beginning July 1, 2022, breast pumps, breast pump
	3066	+	16 collection and storage supplies, and breast pump kits.
	3067	+	17 This item (46) is exempt from the provisions of Section
	3068	+	18 2-70. As used in this item (46):
	3069	+	19 "Breast pump" means an electrically controlled or
	3070	+	20 manually controlled pump device designed or marketed to be
	3071	+	21 used to express milk from a human breast during lactation,
	3072	+	22 including the pump device and any battery, AC adapter, or
	3073	+	23 other power supply unit that is used to power the pump
	3074	+	24 device and is packaged and sold with the pump device at the
	3075	+	25 time of sale.
	3076	+	26 "Breast pump collection and storage supplies" means
	3077	+
	3078	+
	3079	+
	3080	+
	3081	+
	3082	+	SB1963 Enrolled - 86 - LRB103 25648 HLH 51997 b
	3083	+
	3084	+
	3085	+	SB1963 Enrolled- 87 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 87 - LRB103 25648 HLH 51997 b
	3086	+	SB1963 Enrolled - 87 - LRB103 25648 HLH 51997 b
	3087	+	1 items of tangible personal property designed or marketed
	3088	+	2 to be used in conjunction with a breast pump to collect
	3089	+	3 milk expressed from a human breast and to store collected
	3090	+	4 milk until it is ready for consumption.
	3091	+	5 "Breast pump collection and storage supplies"
	3092	+	6 includes, but is not limited to: breast shields and breast
	3093	+	7 shield connectors; breast pump tubes and tubing adapters;
	3094	+	8 breast pump valves and membranes; backflow protectors and
	3095	+	9 backflow protector adaptors; bottles and bottle caps
	3096	+	10 specific to the operation of the breast pump; and breast
	3097	+	11 milk storage bags.
	3098	+	12 "Breast pump collection and storage supplies" does not
	3099	+	13 include: (1) bottles and bottle caps not specific to the
	3100	+	14 operation of the breast pump; (2) breast pump travel bags
	3101	+	15 and other similar carrying accessories, including ice
	3102	+	16 packs, labels, and other similar products; (3) breast pump
	3103	+	17 cleaning supplies; (4) nursing bras, bra pads, breast
	3104	+	18 shells, and other similar products; and (5) creams,
	3105	+	19 ointments, and other similar products that relieve
	3106	+	20 breastfeeding-related symptoms or conditions of the
	3107	+	21 breasts or nipples, unless sold as part of a breast pump
	3108	+	22 kit that is pre-packaged by the breast pump manufacturer
	3109	+	23 or distributor.
	3110	+	24 "Breast pump kit" means a kit that: (1) contains no
	3111	+	25 more than a breast pump, breast pump collection and
	3112	+	26 storage supplies, a rechargeable battery for operating the
	3113	+
	3114	+
	3115	+
	3116	+
	3117	+
	3118	+	SB1963 Enrolled - 87 - LRB103 25648 HLH 51997 b
	3119	+
	3120	+
	3121	+	SB1963 Enrolled- 88 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 88 - LRB103 25648 HLH 51997 b
	3122	+	SB1963 Enrolled - 88 - LRB103 25648 HLH 51997 b
	3123	+	1 breast pump, a breastmilk cooler, bottle stands, ice
	3124	+	2 packs, and a breast pump carrying case; and (2) is
	3125	+	3 pre-packaged as a breast pump kit by the breast pump
	3126	+	4 manufacturer or distributor.
	3127	+	5 (47) (46) Tangible personal property sold by or on
	3128	+	6 behalf of the State Treasurer pursuant to the Revised
	3129	+	7 Uniform Unclaimed Property Act. This item (47) (46) is
	3130	+	8 exempt from the provisions of Section 2-70.
	3131	+	9 (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
	3132	+	10 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
	3133	+	11 8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
	3134	+	12 102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
	3135	+	13 eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
	3136	+	14 ARTICLE 10. ETHANOL BLENDED FUEL
	3137	+	15 Section 10-5. The Use Tax Act is amended by changing
	3138	+	16 Sections 3-10, 3-40, and 3-44 and by adding Section 3-44.3 as
	3139	+	17 follows:
	3140	+	18 (35 ILCS 105/3-10)
	3141	+	19 Sec. 3-10. Rate of tax. Unless otherwise provided in this
	3142	+	20 Section, the tax imposed by this Act is at the rate of 6.25% of
	3143	+	21 either the selling price or the fair market value, if any, of
	3144	+	22 the tangible personal property. In all cases where property
	3145	+	23 functionally used or consumed is the same as the property that
	3146	+
	3147	+
	3148	+
	3149	+
	3150	+
	3151	+	SB1963 Enrolled - 88 - LRB103 25648 HLH 51997 b
	3152	+
	3153	+
	3154	+	SB1963 Enrolled- 89 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 89 - LRB103 25648 HLH 51997 b
	3155	+	SB1963 Enrolled - 89 - LRB103 25648 HLH 51997 b
	3156	+	1 was purchased at retail, then the tax is imposed on the selling
	3157	+	2 price of the property. In all cases where property
	3158	+	3 functionally used or consumed is a by-product or waste product
	3159	+	4 that has been refined, manufactured, or produced from property
	3160	+	5 purchased at retail, then the tax is imposed on the lower of
	3161	+	6 the fair market value, if any, of the specific property so used
	3162	+	7 in this State or on the selling price of the property purchased
	3163	+	8 at retail. For purposes of this Section "fair market value"
	3164	+	9 means the price at which property would change hands between a
	3165	+	10 willing buyer and a willing seller, neither being under any
	3166	+	11 compulsion to buy or sell and both having reasonable knowledge
	3167	+	12 of the relevant facts. The fair market value shall be
	3168	+	13 established by Illinois sales by the taxpayer of the same
	3169	+	14 property as that functionally used or consumed, or if there
	3170	+	15 are no such sales by the taxpayer, then comparable sales or
	3171	+	16 purchases of property of like kind and character in Illinois.
	3172	+	17 Beginning on July 1, 2000 and through December 31, 2000,
	3173	+	18 with respect to motor fuel, as defined in Section 1.1 of the
	3174	+	19 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
	3175	+	20 the Use Tax Act, the tax is imposed at the rate of 1.25%.
	3176	+	21 Beginning on August 6, 2010 through August 15, 2010, and
	3177	+	22 beginning again on August 5, 2022 through August 14, 2022,
	3178	+	23 with respect to sales tax holiday items as defined in Section
	3179	+	24 3-6 of this Act, the tax is imposed at the rate of 1.25%.
	3180	+	25 With respect to gasohol, the tax imposed by this Act
	3181	+	26 applies to (i) 70% of the proceeds of sales made on or after
	3182	+
	3183	+
	3184	+
	3185	+
	3186	+
	3187	+	SB1963 Enrolled - 89 - LRB103 25648 HLH 51997 b
	3188	+
	3189	+
	3190	+	SB1963 Enrolled- 90 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 90 - LRB103 25648 HLH 51997 b
	3191	+	SB1963 Enrolled - 90 - LRB103 25648 HLH 51997 b
	3192	+	1 January 1, 1990, and before July 1, 2003, (ii) 80% of the
	3193	+	2 proceeds of sales made on or after July 1, 2003 and on or
	3194	+	3 before July 1, 2017, and (iii) 100% of the proceeds of sales
	3195	+	4 made after July 1, 2017 and prior to January 1, 2024, (iv) 90%
	3196	+	5 of the proceeds of sales made on or after January 1, 2024 and
	3197	+	6 on or before December 31, 2028, and (v) 100% of the proceeds of
	3198	+	7 sales made after December 31, 2028 thereafter. If, at any
	3199	+	8 time, however, the tax under this Act on sales of gasohol is
	3200	+	9 imposed at the rate of 1.25%, then the tax imposed by this Act
	3201	+	10 applies to 100% of the proceeds of sales of gasohol made during
	3202	+	11 that time.
	3203	+	12 With respect to mid-range ethanol blends, the tax imposed
	3204	+	13 by this Act applies to (i) 80% of the proceeds of sales made on
	3205	+	14 or after January 1, 2024 and on or before December 31, 2028 and
	3206	+	15 (ii) 100% of the proceeds of sales made thereafter. If, at any
	3207	+	16 time, however, the tax under this Act on sales of mid-range
	3208	+	17 ethanol blends is imposed at the rate of 1.25%, then the tax
	3209	+	18 imposed by this Act applies to 100% of the proceeds of sales of
	3210	+	19 mid-range ethanol blends made during that time.
	3211	+	20 With respect to majority blended ethanol fuel, the tax
	3212	+	21 imposed by this Act does not apply to the proceeds of sales
	3213	+	22 made on or after July 1, 2003 and on or before December 31,
	3214	+	23 2028 December 31, 2023 but applies to 100% of the proceeds of
	3215	+	24 sales made thereafter.
	3216	+	25 With respect to biodiesel blends with no less than 1% and
	3217	+	26 no more than 10% biodiesel, the tax imposed by this Act applies
	3218	+
	3219	+
	3220	+
	3221	+
	3222	+
	3223	+	SB1963 Enrolled - 90 - LRB103 25648 HLH 51997 b
	3224	+
	3225	+
	3226	+	SB1963 Enrolled- 91 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 91 - LRB103 25648 HLH 51997 b
	3227	+	SB1963 Enrolled - 91 - LRB103 25648 HLH 51997 b
	3228	+	1 to (i) 80% of the proceeds of sales made on or after July 1,
	3229	+	2 2003 and on or before December 31, 2018 and (ii) 100% of the
	3230	+	3 proceeds of sales made after December 31, 2018 and before
	3231	+	4 January 1, 2024. On and after January 1, 2024 and on or before
	3232	+	5 December 31, 2030, the taxation of biodiesel, renewable
	3233	+	6 diesel, and biodiesel blends shall be as provided in Section
	3234	+	7 3-5.1. If, at any time, however, the tax under this Act on
	3235	+	8 sales of biodiesel blends with no less than 1% and no more than
	3236	+	9 10% biodiesel is imposed at the rate of 1.25%, then the tax
	3237	+	10 imposed by this Act applies to 100% of the proceeds of sales of
	3238	+	11 biodiesel blends with no less than 1% and no more than 10%
	3239	+	12 biodiesel made during that time.
	3240	+	13 With respect to biodiesel and biodiesel blends with more
	3241	+	14 than 10% but no more than 99% biodiesel, the tax imposed by
	3242	+	15 this Act does not apply to the proceeds of sales made on or
	3243	+	16 after July 1, 2003 and on or before December 31, 2023. On and
	3244	+	17 after January 1, 2024 and on or before December 31, 2030, the
	3245	+	18 taxation of biodiesel, renewable diesel, and biodiesel blends
	3246	+	19 shall be as provided in Section 3-5.1.
	3247	+	20 Until July 1, 2022 and beginning again on July 1, 2023,
	3248	+	21 with respect to food for human consumption that is to be
	3249	+	22 consumed off the premises where it is sold (other than
	3250	+	23 alcoholic beverages, food consisting of or infused with adult
	3251	+	24 use cannabis, soft drinks, and food that has been prepared for
	3252	+	25 immediate consumption), the tax is imposed at the rate of 1%.
	3253	+	26 Beginning on July 1, 2022 and until July 1, 2023, with respect
	3254	+
	3255	+
	3256	+
	3257	+
	3258	+
	3259	+	SB1963 Enrolled - 91 - LRB103 25648 HLH 51997 b
	3260	+
	3261	+
	3262	+	SB1963 Enrolled- 92 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 92 - LRB103 25648 HLH 51997 b
	3263	+	SB1963 Enrolled - 92 - LRB103 25648 HLH 51997 b
	3264	+	1 to food for human consumption that is to be consumed off the
	3265	+	2 premises where it is sold (other than alcoholic beverages,
	3266	+	3 food consisting of or infused with adult use cannabis, soft
	3267	+	4 drinks, and food that has been prepared for immediate
	3268	+	5 consumption), the tax is imposed at the rate of 0%.
	3269	+	6 With respect to prescription and nonprescription
	3270	+	7 medicines, drugs, medical appliances, products classified as
	3271	+	8 Class III medical devices by the United States Food and Drug
	3272	+	9 Administration that are used for cancer treatment pursuant to
	3273	+	10 a prescription, as well as any accessories and components
	3274	+	11 related to those devices, modifications to a motor vehicle for
	3275	+	12 the purpose of rendering it usable by a person with a
	3276	+	13 disability, and insulin, blood sugar testing materials,
	3277	+	14 syringes, and needles used by human diabetics, the tax is
	3278	+	15 imposed at the rate of 1%. For the purposes of this Section,
	3279	+	16 until September 1, 2009: the term "soft drinks" means any
	3280	+	17 complete, finished, ready-to-use, non-alcoholic drink, whether
	3281	+	18 carbonated or not, including, but not limited to, soda water,
	3282	+	19 cola, fruit juice, vegetable juice, carbonated water, and all
	3283	+	20 other preparations commonly known as soft drinks of whatever
	3284	+	21 kind or description that are contained in any closed or sealed
	3285	+	22 bottle, can, carton, or container, regardless of size; but
	3286	+	23 "soft drinks" does not include coffee, tea, non-carbonated
	3287	+	24 water, infant formula, milk or milk products as defined in the
	3288	+	25 Grade A Pasteurized Milk and Milk Products Act, or drinks
	3289	+	26 containing 50% or more natural fruit or vegetable juice.
	3290	+
	3291	+
	3292	+
	3293	+
	3294	+
	3295	+	SB1963 Enrolled - 92 - LRB103 25648 HLH 51997 b
	3296	+
	3297	+
	3298	+	SB1963 Enrolled- 93 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 93 - LRB103 25648 HLH 51997 b
	3299	+	SB1963 Enrolled - 93 - LRB103 25648 HLH 51997 b
	3300	+	1 Notwithstanding any other provisions of this Act,
	3301	+	2 beginning September 1, 2009, "soft drinks" means non-alcoholic
	3302	+	3 beverages that contain natural or artificial sweeteners. "Soft
	3303	+	4 drinks" does do not include beverages that contain milk or
	3304	+	5 milk products, soy, rice or similar milk substitutes, or
	3305	+	6 greater than 50% of vegetable or fruit juice by volume.
	3306	+	7 Until August 1, 2009, and notwithstanding any other
	3307	+	8 provisions of this Act, "food for human consumption that is to
	3308	+	9 be consumed off the premises where it is sold" includes all
	3309	+	10 food sold through a vending machine, except soft drinks and
	3310	+	11 food products that are dispensed hot from a vending machine,
	3311	+	12 regardless of the location of the vending machine. Beginning
	3312	+	13 August 1, 2009, and notwithstanding any other provisions of
	3313	+	14 this Act, "food for human consumption that is to be consumed
	3314	+	15 off the premises where it is sold" includes all food sold
	3315	+	16 through a vending machine, except soft drinks, candy, and food
	3316	+	17 products that are dispensed hot from a vending machine,
	3317	+	18 regardless of the location of the vending machine.
	3318	+	19 Notwithstanding any other provisions of this Act,
	3319	+	20 beginning September 1, 2009, "food for human consumption that
	3320	+	21 is to be consumed off the premises where it is sold" does not
	3321	+	22 include candy. For purposes of this Section, "candy" means a
	3322	+	23 preparation of sugar, honey, or other natural or artificial
	3323	+	24 sweeteners in combination with chocolate, fruits, nuts or
	3324	+	25 other ingredients or flavorings in the form of bars, drops, or
	3325	+	26 pieces. "Candy" does not include any preparation that contains
	3326	+
	3327	+
	3328	+
	3329	+
	3330	+
	3331	+	SB1963 Enrolled - 93 - LRB103 25648 HLH 51997 b
	3332	+
	3333	+
	3334	+	SB1963 Enrolled- 94 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 94 - LRB103 25648 HLH 51997 b
	3335	+	SB1963 Enrolled - 94 - LRB103 25648 HLH 51997 b
	3336	+	1 flour or requires refrigeration.
	3337	+	2 Notwithstanding any other provisions of this Act,
	3338	+	3 beginning September 1, 2009, "nonprescription medicines and
	3339	+	4 drugs" does not include grooming and hygiene products. For
	3340	+	5 purposes of this Section, "grooming and hygiene products"
	3341	+	6 includes, but is not limited to, soaps and cleaning solutions,
	3342	+	7 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
	3343	+	8 lotions and screens, unless those products are available by
	3344	+	9 prescription only, regardless of whether the products meet the
	3345	+	10 definition of "over-the-counter-drugs". For the purposes of
	3346	+	11 this paragraph, "over-the-counter-drug" means a drug for human
	3347	+	12 use that contains a label that identifies the product as a drug
	3348	+	13 as required by 21 CFR C.F.R. 201.66. The
	3349	+	14 "over-the-counter-drug" label includes:
	3350	+	15 (A) a A "Drug Facts" panel; or
	3351	+	16 (B) a A statement of the "active ingredient(s)" with a
	3352	+	17 list of those ingredients contained in the compound,
	3353	+	18 substance or preparation.
	3354	+	19 Beginning on January 1, 2014 (the effective date of Public
	3355	+	20 Act 98-122) this amendatory Act of the 98th General Assembly,
	3356	+	21 "prescription and nonprescription medicines and drugs"
	3357	+	22 includes medical cannabis purchased from a registered
	3358	+	23 dispensing organization under the Compassionate Use of Medical
	3359	+	24 Cannabis Program Act.
	3360	+	25 As used in this Section, "adult use cannabis" means
	3361	+	26 cannabis subject to tax under the Cannabis Cultivation
	3362	+
	3363	+
	3364	+
	3365	+
	3366	+
	3367	+	SB1963 Enrolled - 94 - LRB103 25648 HLH 51997 b
	3368	+
	3369	+
	3370	+	SB1963 Enrolled- 95 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 95 - LRB103 25648 HLH 51997 b
	3371	+	SB1963 Enrolled - 95 - LRB103 25648 HLH 51997 b
	3372	+	1 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
	3373	+	2 and does not include cannabis subject to tax under the
	3374	+	3 Compassionate Use of Medical Cannabis Program Act.
	3375	+	4 If the property that is purchased at retail from a
	3376	+	5 retailer is acquired outside Illinois and used outside
	3377	+	6 Illinois before being brought to Illinois for use here and is
	3378	+	7 taxable under this Act, the "selling price" on which the tax is
	3379	+	8 computed shall be reduced by an amount that represents a
	3380	+	9 reasonable allowance for depreciation for the period of prior
	3381	+	10 out-of-state use.
	3382	+	11 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
	3383	+	12 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.
	3384	+	13 4-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;
	3385	+	14 102-700, Article 65, Section 65-5, eff. 4-19-22; revised
	3386	+	15 5-27-22.)
	3387	+	16 (35 ILCS 105/3-40) (from Ch. 120, par. 439.3-40)
	3388	+	17 Sec. 3-40. Gasohol. As used in this Act, "gasohol" means
	3389	+	18 motor fuel that is a blend of denatured ethanol and gasoline
	3390	+	19 that contains no more than 1.25% water by weight. Prior to
	3391	+	20 January 1, 2024, the The blend must contain 90% gasoline and
	3392	+	21 10% denatured ethanol. On and after January 1, 2024, the blend
	3393	+	22 must contain 85% gasoline and 15% denatured ethanol. A maximum
	3394	+	23 of one percent error factor in the amount of denatured ethanol
	3395	+	24 used in the blend is allowable to compensate for blending
	3396	+	25 equipment variations. Any person who knowingly sells or
	3397	+
	3398	+
	3399	+
	3400	+
	3401	+
	3402	+	SB1963 Enrolled - 95 - LRB103 25648 HLH 51997 b
	3403	+
	3404	+
	3405	+	SB1963 Enrolled- 96 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 96 - LRB103 25648 HLH 51997 b
	3406	+	SB1963 Enrolled - 96 - LRB103 25648 HLH 51997 b
	3407	+	1 represents as gasohol any fuel that does not qualify as
	3408	+	2 gasohol under this Act is guilty of a business offense and
	3409	+	3 shall be fined not more than $100 for each day that the sale or
	3410	+	4 representation takes place after notification from the
	3411	+	5 Department of Agriculture that the fuel in question does not
	3412	+	6 qualify as gasohol.
	3413	+	7 (Source: P.A. 93-724, eff. 7-13-04.)
	3414	+	8 (35 ILCS 105/3-44)
	3415	+	9 Sec. 3-44. Majority blended ethanol fuel. Prior to January
	3416	+	10 1, 2024, "majority "Majority blended ethanol fuel" means motor
	3417	+	11 fuel that contains not less than 70% and no more than 90%
	3418	+	12 denatured ethanol and no less than 10% and no more than 30%
	3419	+	13 gasoline. On and after January 1, 2024, "majority blended
	3420	+	14 ethanol fuel" means motor fuel that is capable of being used in
	3421	+	15 the operation of flexible fuel vehicles and contains at least
	3422	+	16 51% and not more than 83% ethanol, by volume, as specified in
	3423	+	17 ASTM Standard D5798-11, and no less than 17% and no more than
	3424	+	18 49% gasoline.
	3425	+	19 (Source: P.A. 93-17, eff. 6-11-03.)
	3426	+	20 (35 ILCS 105/3-44.3 new)
	3427	+	21 Sec. 3-44.3. Mid-range ethanol blend. "Mid-range ethanol
	3428	+	22 blend" means a blend of gasoline and denatured ethanol that
	3429	+	23 contains at least 20% but less than 51% denatured ethanol.
	3430	+
	3431	+
	3432	+
	3433	+
	3434	+
	3435	+	SB1963 Enrolled - 96 - LRB103 25648 HLH 51997 b
	3436	+
	3437	+
	3438	+	SB1963 Enrolled- 97 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 97 - LRB103 25648 HLH 51997 b
	3439	+	SB1963 Enrolled - 97 - LRB103 25648 HLH 51997 b
	3440	+	1 Section 10-10. The Service Use Tax Act is amended by
	3441	+	2 changing Section 3-10 as follows:
	3442	+	3 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
	3443	+	4 Sec. 3-10. Rate of tax. Unless otherwise provided in this
	3444	+	5 Section, the tax imposed by this Act is at the rate of 6.25% of
	3445	+	6 the selling price of tangible personal property transferred as
	3446	+	7 an incident to the sale of service, but, for the purpose of
	3447	+	8 computing this tax, in no event shall the selling price be less
	3448	+	9 than the cost price of the property to the serviceman.
	3449	+	10 Beginning on July 1, 2000 and through December 31, 2000,
	3450	+	11 with respect to motor fuel, as defined in Section 1.1 of the
	3451	+	12 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
	3452	+	13 the Use Tax Act, the tax is imposed at the rate of 1.25%.
	3453	+	14 With respect to gasohol, as defined in the Use Tax Act, the
	3454	+	15 tax imposed by this Act applies to (i) 70% of the selling price
	3455	+	16 of property transferred as an incident to the sale of service
	3456	+	17 on or after January 1, 1990, and before July 1, 2003, (ii) 80%
	3457	+	18 of the selling price of property transferred as an incident to
	3458	+	19 the sale of service on or after July 1, 2003 and on or before
	3459	+	20 July 1, 2017, and (iii) 100% of the selling price of property
	3460	+	21 transferred as an incident to the sale of service after July 1,
	3461	+	22 2017 and before January 1, 2024, (iv) 90% of the selling price
	3462	+	23 of property transferred as an incident to the sale of service
	3463	+	24 on or after January 1, 2024 and on or before December 31, 2028,
	3464	+	25 and (v) 100% of the selling price of property transferred as an
	3465	+
	3466	+
	3467	+
	3468	+
	3469	+
	3470	+	SB1963 Enrolled - 97 - LRB103 25648 HLH 51997 b
	3471	+
	3472	+
	3473	+	SB1963 Enrolled- 98 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 98 - LRB103 25648 HLH 51997 b
	3474	+	SB1963 Enrolled - 98 - LRB103 25648 HLH 51997 b
	3475	+	1 incident to the sale of service after December 31, 2028
	3476	+	2 thereafter. If, at any time, however, the tax under this Act on
	3477	+	3 sales of gasohol, as defined in the Use Tax Act, is imposed at
	3478	+	4 the rate of 1.25%, then the tax imposed by this Act applies to
	3479	+	5 100% of the proceeds of sales of gasohol made during that time.
	3480	+	6 With respect to mid-range ethanol blends, as defined in
	3481	+	7 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
	3482	+	8 applies to (i) 80% of the selling price of property
	3483	+	9 transferred as an incident to the sale of service on or after
	3484	+	10 January 1, 2024 and on or before December 31, 2028 and (ii)
	3485	+	11 100% of the selling price of property transferred as an
	3486	+	12 incident to the sale of service after December 31, 2028. If, at
	3487	+	13 any time, however, the tax under this Act on sales of mid-range
	3488	+	14 ethanol blends is imposed at the rate of 1.25%, then the tax
	3489	+	15 imposed by this Act applies to 100% of the selling price of
	3490	+	16 mid-range ethanol blends transferred as an incident to the
	3491	+	17 sale of service during that time.
	3492	+	18 With respect to majority blended ethanol fuel, as defined
	3493	+	19 in the Use Tax Act, the tax imposed by this Act does not apply
	3494	+	20 to the selling price of property transferred as an incident to
	3495	+	21 the sale of service on or after July 1, 2003 and on or before
	3496	+	22 December 31, 2028 December 31, 2023 but applies to 100% of the
	3497	+	23 selling price thereafter.
	3498	+	24 With respect to biodiesel blends, as defined in the Use
	3499	+	25 Tax Act, with no less than 1% and no more than 10% biodiesel,
	3500	+	26 the tax imposed by this Act applies to (i) 80% of the selling
	3501	+
	3502	+
	3503	+
	3504	+
	3505	+
	3506	+	SB1963 Enrolled - 98 - LRB103 25648 HLH 51997 b
	3507	+
	3508	+
	3509	+	SB1963 Enrolled- 99 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 99 - LRB103 25648 HLH 51997 b
	3510	+	SB1963 Enrolled - 99 - LRB103 25648 HLH 51997 b
	3511	+	1 price of property transferred as an incident to the sale of
	3512	+	2 service on or after July 1, 2003 and on or before December 31,
	3513	+	3 2018 and (ii) 100% of the proceeds of the selling price after
	3514	+	4 December 31, 2018 and before January 1, 2024. On and after
	3515	+	5 January 1, 2024 and on or before December 31, 2030, the
	3516	+	6 taxation of biodiesel, renewable diesel, and biodiesel blends
	3517	+	7 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
	3518	+	8 at any time, however, the tax under this Act on sales of
	3519	+	9 biodiesel blends, as defined in the Use Tax Act, with no less
	3520	+	10 than 1% and no more than 10% biodiesel is imposed at the rate
	3521	+	11 of 1.25%, then the tax imposed by this Act applies to 100% of
	3522	+	12 the proceeds of sales of biodiesel blends with no less than 1%
	3523	+	13 and no more than 10% biodiesel made during that time.
	3524	+	14 With respect to biodiesel, as defined in the Use Tax Act,
	3525	+	15 and biodiesel blends, as defined in the Use Tax Act, with more
	3526	+	16 than 10% but no more than 99% biodiesel, the tax imposed by
	3527	+	17 this Act does not apply to the proceeds of the selling price of
	3528	+	18 property transferred as an incident to the sale of service on
	3529	+	19 or after July 1, 2003 and on or before December 31, 2023. On
	3530	+	20 and after January 1, 2024 and on or before December 31, 2030,
	3531	+	21 the taxation of biodiesel, renewable diesel, and biodiesel
	3532	+	22 blends shall be as provided in Section 3-5.1 of the Use Tax
	3533	+	23 Act.
	3534	+	24 At the election of any registered serviceman made for each
	3535	+	25 fiscal year, sales of service in which the aggregate annual
	3536	+	26 cost price of tangible personal property transferred as an
	3537	+
	3538	+
	3539	+
	3540	+
	3541	+
	3542	+	SB1963 Enrolled - 99 - LRB103 25648 HLH 51997 b
	3543	+
	3544	+
	3545	+	SB1963 Enrolled- 100 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 100 - LRB103 25648 HLH 51997 b
	3546	+	SB1963 Enrolled - 100 - LRB103 25648 HLH 51997 b
	3547	+	1 incident to the sales of service is less than 35%, or 75% in
	3548	+	2 the case of servicemen transferring prescription drugs or
	3549	+	3 servicemen engaged in graphic arts production, of the
	3550	+	4 aggregate annual total gross receipts from all sales of
	3551	+	5 service, the tax imposed by this Act shall be based on the
	3552	+	6 serviceman's cost price of the tangible personal property
	3553	+	7 transferred as an incident to the sale of those services.
	3554	+	8 Until July 1, 2022 and beginning again on July 1, 2023, the
	3555	+	9 tax shall be imposed at the rate of 1% on food prepared for
	3556	+	10 immediate consumption and transferred incident to a sale of
	3557	+	11 service subject to this Act or the Service Occupation Tax Act
	3558	+	12 by an entity licensed under the Hospital Licensing Act, the
	3559	+	13 Nursing Home Care Act, the Assisted Living and Shared Housing
	3560	+	14 Act, the ID/DD Community Care Act, the MC/DD Act, the
	3561	+	15 Specialized Mental Health Rehabilitation Act of 2013, or the
	3562	+	16 Child Care Act of 1969, or an entity that holds a permit issued
	3563	+	17 pursuant to the Life Care Facilities Act. Until July 1, 2022
	3564	+	18 and beginning again on July 1, 2023, the tax shall also be
	3565	+	19 imposed at the rate of 1% on food for human consumption that is
	3566	+	20 to be consumed off the premises where it is sold (other than
	3567	+	21 alcoholic beverages, food consisting of or infused with adult
	3568	+	22 use cannabis, soft drinks, and food that has been prepared for
	3569	+	23 immediate consumption and is not otherwise included in this
	3570	+	24 paragraph).
	3571	+	25 Beginning on July 1, 2022 and until July 1, 2023, the tax
	3572	+	26 shall be imposed at the rate of 0% on food prepared for
	3573	+
	3574	+
	3575	+
	3576	+
	3577	+
	3578	+	SB1963 Enrolled - 100 - LRB103 25648 HLH 51997 b
	3579	+
	3580	+
	3581	+	SB1963 Enrolled- 101 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 101 - LRB103 25648 HLH 51997 b
	3582	+	SB1963 Enrolled - 101 - LRB103 25648 HLH 51997 b
	3583	+	1 immediate consumption and transferred incident to a sale of
	3584	+	2 service subject to this Act or the Service Occupation Tax Act
	3585	+	3 by an entity licensed under the Hospital Licensing Act, the
	3586	+	4 Nursing Home Care Act, the Assisted Living and Shared Housing
	3587	+	5 Act, the ID/DD Community Care Act, the MC/DD Act, the
	3588	+	6 Specialized Mental Health Rehabilitation Act of 2013, or the
	3589	+	7 Child Care Act of 1969, or an entity that holds a permit issued
	3590	+	8 pursuant to the Life Care Facilities Act. Beginning on July 1,
	3591	+	9 2022 and until July 1, 2023, the tax shall also be imposed at
	3592	+	10 the rate of 0% on food for human consumption that is to be
	3593	+	11 consumed off the premises where it is sold (other than
	3594	+	12 alcoholic beverages, food consisting of or infused with adult
	3595	+	13 use cannabis, soft drinks, and food that has been prepared for
	3596	+	14 immediate consumption and is not otherwise included in this
	3597	+	15 paragraph).
	3598	+	16 The tax shall also be imposed at the rate of 1% on
	3599	+	17 prescription and nonprescription medicines, drugs, medical
	3600	+	18 appliances, products classified as Class III medical devices
	3601	+	19 by the United States Food and Drug Administration that are
	3602	+	20 used for cancer treatment pursuant to a prescription, as well
	3603	+	21 as any accessories and components related to those devices,
	3604	+	22 modifications to a motor vehicle for the purpose of rendering
	3605	+	23 it usable by a person with a disability, and insulin, blood
	3606	+	24 sugar testing materials, syringes, and needles used by human
	3607	+	25 diabetics. For the purposes of this Section, until September
	3608	+	26 1, 2009: the term "soft drinks" means any complete, finished,
	3609	+
	3610	+
	3611	+
	3612	+
	3613	+
	3614	+	SB1963 Enrolled - 101 - LRB103 25648 HLH 51997 b
	3615	+
	3616	+
	3617	+	SB1963 Enrolled- 102 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 102 - LRB103 25648 HLH 51997 b
	3618	+	SB1963 Enrolled - 102 - LRB103 25648 HLH 51997 b
	3619	+	1 ready-to-use, non-alcoholic drink, whether carbonated or not,
	3620	+	2 including, but not limited to, soda water, cola, fruit juice,
	3621	+	3 vegetable juice, carbonated water, and all other preparations
	3622	+	4 commonly known as soft drinks of whatever kind or description
	3623	+	5 that are contained in any closed or sealed bottle, can,
	3624	+	6 carton, or container, regardless of size; but "soft drinks"
	3625	+	7 does not include coffee, tea, non-carbonated water, infant
	3626	+	8 formula, milk or milk products as defined in the Grade A
	3627	+	9 Pasteurized Milk and Milk Products Act, or drinks containing
	3628	+	10 50% or more natural fruit or vegetable juice.
	3629	+	11 Notwithstanding any other provisions of this Act,
	3630	+	12 beginning September 1, 2009, "soft drinks" means non-alcoholic
	3631	+	13 beverages that contain natural or artificial sweeteners. "Soft
	3632	+	14 drinks" does do not include beverages that contain milk or
	3633	+	15 milk products, soy, rice or similar milk substitutes, or
	3634	+	16 greater than 50% of vegetable or fruit juice by volume.
	3635	+	17 Until August 1, 2009, and notwithstanding any other
	3636	+	18 provisions of this Act, "food for human consumption that is to
	3637	+	19 be consumed off the premises where it is sold" includes all
	3638	+	20 food sold through a vending machine, except soft drinks and
	3639	+	21 food products that are dispensed hot from a vending machine,
	3640	+	22 regardless of the location of the vending machine. Beginning
	3641	+	23 August 1, 2009, and notwithstanding any other provisions of
	3642	+	24 this Act, "food for human consumption that is to be consumed
	3643	+	25 off the premises where it is sold" includes all food sold
	3644	+	26 through a vending machine, except soft drinks, candy, and food
	3645	+
	3646	+
	3647	+
	3648	+
	3649	+
	3650	+	SB1963 Enrolled - 102 - LRB103 25648 HLH 51997 b
	3651	+
	3652	+
	3653	+	SB1963 Enrolled- 103 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 103 - LRB103 25648 HLH 51997 b
	3654	+	SB1963 Enrolled - 103 - LRB103 25648 HLH 51997 b
	3655	+	1 products that are dispensed hot from a vending machine,
	3656	+	2 regardless of the location of the vending machine.
	3657	+	3 Notwithstanding any other provisions of this Act,
	3658	+	4 beginning September 1, 2009, "food for human consumption that
	3659	+	5 is to be consumed off the premises where it is sold" does not
	3660	+	6 include candy. For purposes of this Section, "candy" means a
	3661	+	7 preparation of sugar, honey, or other natural or artificial
	3662	+	8 sweeteners in combination with chocolate, fruits, nuts or
	3663	+	9 other ingredients or flavorings in the form of bars, drops, or
	3664	+	10 pieces. "Candy" does not include any preparation that contains
	3665	+	11 flour or requires refrigeration.
	3666	+	12 Notwithstanding any other provisions of this Act,
	3667	+	13 beginning September 1, 2009, "nonprescription medicines and
	3668	+	14 drugs" does not include grooming and hygiene products. For
	3669	+	15 purposes of this Section, "grooming and hygiene products"
	3670	+	16 includes, but is not limited to, soaps and cleaning solutions,
	3671	+	17 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
	3672	+	18 lotions and screens, unless those products are available by
	3673	+	19 prescription only, regardless of whether the products meet the
	3674	+	20 definition of "over-the-counter-drugs". For the purposes of
	3675	+	21 this paragraph, "over-the-counter-drug" means a drug for human
	3676	+	22 use that contains a label that identifies the product as a drug
	3677	+	23 as required by 21 CFR C.F.R. 201.66. The
	3678	+	24 "over-the-counter-drug" label includes:
	3679	+	25 (A) a A "Drug Facts" panel; or
	3680	+	26 (B) a A statement of the "active ingredient(s)" with a
	3681	+
	3682	+
	3683	+
	3684	+
	3685	+
	3686	+	SB1963 Enrolled - 103 - LRB103 25648 HLH 51997 b
	3687	+
	3688	+
	3689	+	SB1963 Enrolled- 104 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 104 - LRB103 25648 HLH 51997 b
	3690	+	SB1963 Enrolled - 104 - LRB103 25648 HLH 51997 b
	3691	+	1 list of those ingredients contained in the compound,
	3692	+	2 substance or preparation.
	3693	+	3 Beginning on January 1, 2014 (the effective date of Public
	3694	+	4 Act 98-122), "prescription and nonprescription medicines and
	3695	+	5 drugs" includes medical cannabis purchased from a registered
	3696	+	6 dispensing organization under the Compassionate Use of Medical
	3697	+	7 Cannabis Program Act.
	3698	+	8 As used in this Section, "adult use cannabis" means
	3699	+	9 cannabis subject to tax under the Cannabis Cultivation
	3700	+	10 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
	3701	+	11 and does not include cannabis subject to tax under the
	3702	+	12 Compassionate Use of Medical Cannabis Program Act.
	3703	+	13 If the property that is acquired from a serviceman is
	3704	+	14 acquired outside Illinois and used outside Illinois before
	3705	+	15 being brought to Illinois for use here and is taxable under
	3706	+	16 this Act, the "selling price" on which the tax is computed
	3707	+	17 shall be reduced by an amount that represents a reasonable
	3708	+	18 allowance for depreciation for the period of prior
	3709	+	19 out-of-state use.
	3710	+	20 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
	3711	+	21 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
	3712	+	22 20, Section 20-10, eff. 4-19-22; 102-700, Article 60, Section
	3713	+	23 60-20, eff. 4-19-22; revised 6-1-22.)
	3714	+	24 Section 10-15. The Service Occupation Tax Act is amended
	3715	+	25 by changing Section 3-10 as follows:
	3716	+
	3717	+
	3718	+
	3719	+
	3720	+
	3721	+	SB1963 Enrolled - 104 - LRB103 25648 HLH 51997 b
	3722	+
	3723	+
	3724	+	SB1963 Enrolled- 105 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 105 - LRB103 25648 HLH 51997 b
	3725	+	SB1963 Enrolled - 105 - LRB103 25648 HLH 51997 b
	3726	+	1 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
	3727	+	2 Sec. 3-10. Rate of tax. Unless otherwise provided in this
	3728	+	3 Section, the tax imposed by this Act is at the rate of 6.25% of
	3729	+	4 the "selling price", as defined in Section 2 of the Service Use
	3730	+	5 Tax Act, of the tangible personal property. For the purpose of
	3731	+	6 computing this tax, in no event shall the "selling price" be
	3732	+	7 less than the cost price to the serviceman of the tangible
	3733	+	8 personal property transferred. The selling price of each item
	3734	+	9 of tangible personal property transferred as an incident of a
	3735	+	10 sale of service may be shown as a distinct and separate item on
	3736	+	11 the serviceman's billing to the service customer. If the
	3737	+	12 selling price is not so shown, the selling price of the
	3738	+	13 tangible personal property is deemed to be 50% of the
	3739	+	14 serviceman's entire billing to the service customer. When,
	3740	+	15 however, a serviceman contracts to design, develop, and
	3741	+	16 produce special order machinery or equipment, the tax imposed
	3742	+	17 by this Act shall be based on the serviceman's cost price of
	3743	+	18 the tangible personal property transferred incident to the
	3744	+	19 completion of the contract.
	3745	+	20 Beginning on July 1, 2000 and through December 31, 2000,
	3746	+	21 with respect to motor fuel, as defined in Section 1.1 of the
	3747	+	22 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
	3748	+	23 the Use Tax Act, the tax is imposed at the rate of 1.25%.
	3749	+	24 With respect to gasohol, as defined in the Use Tax Act, the
	3750	+	25 tax imposed by this Act shall apply to (i) 70% of the cost
	3751	+
	3752	+
	3753	+
	3754	+
	3755	+
	3756	+	SB1963 Enrolled - 105 - LRB103 25648 HLH 51997 b
	3757	+
	3758	+
	3759	+	SB1963 Enrolled- 106 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 106 - LRB103 25648 HLH 51997 b
	3760	+	SB1963 Enrolled - 106 - LRB103 25648 HLH 51997 b
	3761	+	1 price of property transferred as an incident to the sale of
	3762	+	2 service on or after January 1, 1990, and before July 1, 2003,
	3763	+	3 (ii) 80% of the selling price of property transferred as an
	3764	+	4 incident to the sale of service on or after July 1, 2003 and on
	3765	+	5 or before July 1, 2017, and (iii) 100% of the selling price of
	3766	+	6 property transferred as an incident to the sale of service
	3767	+	7 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
	3768	+	8 the selling price of property transferred as an incident to
	3769	+	9 the sale of service on or after January 1, 2024 and on or
	3770	+	10 before December 31, 2028, and (v) 100% of the selling price of
	3771	+	11 property transferred as an incident to the sale of service
	3772	+	12 after December 31, 2028 cost price thereafter. If, at any
	3773	+	13 time, however, the tax under this Act on sales of gasohol, as
	3774	+	14 defined in the Use Tax Act, is imposed at the rate of 1.25%,
	3775	+	15 then the tax imposed by this Act applies to 100% of the
	3776	+	16 proceeds of sales of gasohol made during that time.
	3777	+	17 With respect to mid-range ethanol blends, as defined in
	3778	+	18 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
	3779	+	19 applies to (i) 80% of the selling price of property
	3780	+	20 transferred as an incident to the sale of service on or after
	3781	+	21 January 1, 2024 and on or before December 31, 2028 and (ii)
	3782	+	22 100% of the selling price of property transferred as an
	3783	+	23 incident to the sale of service after December 31, 2028. If, at
	3784	+	24 any time, however, the tax under this Act on sales of mid-range
	3785	+	25 ethanol blends is imposed at the rate of 1.25%, then the tax
	3786	+	26 imposed by this Act applies to 100% of the selling price of
	3787	+
	3788	+
	3789	+
	3790	+
	3791	+
	3792	+	SB1963 Enrolled - 106 - LRB103 25648 HLH 51997 b
	3793	+
	3794	+
	3795	+	SB1963 Enrolled- 107 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 107 - LRB103 25648 HLH 51997 b
	3796	+	SB1963 Enrolled - 107 - LRB103 25648 HLH 51997 b
	3797	+	1 mid-range ethanol blends transferred as an incident to the
	3798	+	2 sale of service during that time.
	3799	+	3 With respect to majority blended ethanol fuel, as defined
	3800	+	4 in the Use Tax Act, the tax imposed by this Act does not apply
	3801	+	5 to the selling price of property transferred as an incident to
	3802	+	6 the sale of service on or after July 1, 2003 and on or before
	3803	+	7 December 31, 2028 December 31, 2023 but applies to 100% of the
	3804	+	8 selling price thereafter.
	3805	+	9 With respect to biodiesel blends, as defined in the Use
	3806	+	10 Tax Act, with no less than 1% and no more than 10% biodiesel,
	3807	+	11 the tax imposed by this Act applies to (i) 80% of the selling
	3808	+	12 price of property transferred as an incident to the sale of
	3809	+	13 service on or after July 1, 2003 and on or before December 31,
	3810	+	14 2018 and (ii) 100% of the proceeds of the selling price after
	3811	+	15 December 31, 2018 and before January 1, 2024. On and after
	3812	+	16 January 1, 2024 and on or before December 31, 2030, the
	3813	+	17 taxation of biodiesel, renewable diesel, and biodiesel blends
	3814	+	18 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
	3815	+	19 at any time, however, the tax under this Act on sales of
	3816	+	20 biodiesel blends, as defined in the Use Tax Act, with no less
	3817	+	21 than 1% and no more than 10% biodiesel is imposed at the rate
	3818	+	22 of 1.25%, then the tax imposed by this Act applies to 100% of
	3819	+	23 the proceeds of sales of biodiesel blends with no less than 1%
	3820	+	24 and no more than 10% biodiesel made during that time.
	3821	+	25 With respect to biodiesel, as defined in the Use Tax Act,
	3822	+	26 and biodiesel blends, as defined in the Use Tax Act, with more
	3823	+
	3824	+
	3825	+
	3826	+
	3827	+
	3828	+	SB1963 Enrolled - 107 - LRB103 25648 HLH 51997 b
	3829	+
	3830	+
	3831	+	SB1963 Enrolled- 108 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 108 - LRB103 25648 HLH 51997 b
	3832	+	SB1963 Enrolled - 108 - LRB103 25648 HLH 51997 b
	3833	+	1 than 10% but no more than 99% biodiesel material, the tax
	3834	+	2 imposed by this Act does not apply to the proceeds of the
	3835	+	3 selling price of property transferred as an incident to the
	3836	+	4 sale of service on or after July 1, 2003 and on or before
	3837	+	5 December 31, 2023. On and after January 1, 2024 and on or
	3838	+	6 before December 31, 2030, the taxation of biodiesel, renewable
	3839	+	7 diesel, and biodiesel blends shall be as provided in Section
	3840	+	8 3-5.1 of the Use Tax Act.
	3841	+	9 At the election of any registered serviceman made for each
	3842	+	10 fiscal year, sales of service in which the aggregate annual
	3843	+	11 cost price of tangible personal property transferred as an
	3844	+	12 incident to the sales of service is less than 35%, or 75% in
	3845	+	13 the case of servicemen transferring prescription drugs or
	3846	+	14 servicemen engaged in graphic arts production, of the
	3847	+	15 aggregate annual total gross receipts from all sales of
	3848	+	16 service, the tax imposed by this Act shall be based on the
	3849	+	17 serviceman's cost price of the tangible personal property
	3850	+	18 transferred incident to the sale of those services.
	3851	+	19 Until July 1, 2022 and beginning again on July 1, 2023, the
	3852	+	20 tax shall be imposed at the rate of 1% on food prepared for
	3853	+	21 immediate consumption and transferred incident to a sale of
	3854	+	22 service subject to this Act or the Service Use Tax Act by an
	3855	+	23 entity licensed under the Hospital Licensing Act, the Nursing
	3856	+	24 Home Care Act, the Assisted Living and Shared Housing Act, the
	3857	+	25 ID/DD Community Care Act, the MC/DD Act, the Specialized
	3858	+	26 Mental Health Rehabilitation Act of 2013, or the Child Care
	3859	+
	3860	+
	3861	+
	3862	+
	3863	+
	3864	+	SB1963 Enrolled - 108 - LRB103 25648 HLH 51997 b
	3865	+
	3866	+
	3867	+	SB1963 Enrolled- 109 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 109 - LRB103 25648 HLH 51997 b
	3868	+	SB1963 Enrolled - 109 - LRB103 25648 HLH 51997 b
	3869	+	1 Act of 1969, or an entity that holds a permit issued pursuant
	3870	+	2 to the Life Care Facilities Act. Until July 1, 2022 and
	3871	+	3 beginning again on July 1, 2023, the tax shall also be imposed
	3872	+	4 at the rate of 1% on food for human consumption that is to be
	3873	+	5 consumed off the premises where it is sold (other than
	3874	+	6 alcoholic beverages, food consisting of or infused with adult
	3875	+	7 use cannabis, soft drinks, and food that has been prepared for
	3876	+	8 immediate consumption and is not otherwise included in this
	3877	+	9 paragraph).
	3878	+	10 Beginning on July 1, 2022 and until July 1, 2023, the tax
	3879	+	11 shall be imposed at the rate of 0% on food prepared for
	3880	+	12 immediate consumption and transferred incident to a sale of
	3881	+	13 service subject to this Act or the Service Use Tax Act by an
	3882	+	14 entity licensed under the Hospital Licensing Act, the Nursing
	3883	+	15 Home Care Act, the Assisted Living and Shared Housing Act, the
	3884	+	16 ID/DD Community Care Act, the MC/DD Act, the Specialized
	3885	+	17 Mental Health Rehabilitation Act of 2013, or the Child Care
	3886	+	18 Act of 1969, or an entity that holds a permit issued pursuant
	3887	+	19 to the Life Care Facilities Act. Beginning July 1, 2022 and
	3888	+	20 until July 1, 2023, the tax shall also be imposed at the rate
	3889	+	21 of 0% on food for human consumption that is to be consumed off
	3890	+	22 the premises where it is sold (other than alcoholic beverages,
	3891	+	23 food consisting of or infused with adult use cannabis, soft
	3892	+	24 drinks, and food that has been prepared for immediate
	3893	+	25 consumption and is not otherwise included in this paragraph).
	3894	+	26 The tax shall also be imposed at the rate of 1% on
	3895	+
	3896	+
	3897	+
	3898	+
	3899	+
	3900	+	SB1963 Enrolled - 109 - LRB103 25648 HLH 51997 b
	3901	+
	3902	+
	3903	+	SB1963 Enrolled- 110 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 110 - LRB103 25648 HLH 51997 b
	3904	+	SB1963 Enrolled - 110 - LRB103 25648 HLH 51997 b
	3905	+	1 prescription and nonprescription medicines, drugs, medical
	3906	+	2 appliances, products classified as Class III medical devices
	3907	+	3 by the United States Food and Drug Administration that are
	3908	+	4 used for cancer treatment pursuant to a prescription, as well
	3909	+	5 as any accessories and components related to those devices,
	3910	+	6 modifications to a motor vehicle for the purpose of rendering
	3911	+	7 it usable by a person with a disability, and insulin, blood
	3912	+	8 sugar testing materials, syringes, and needles used by human
	3913	+	9 diabetics. For the purposes of this Section, until September
	3914	+	10 1, 2009: the term "soft drinks" means any complete, finished,
	3915	+	11 ready-to-use, non-alcoholic drink, whether carbonated or not,
	3916	+	12 including, but not limited to, soda water, cola, fruit juice,
	3917	+	13 vegetable juice, carbonated water, and all other preparations
	3918	+	14 commonly known as soft drinks of whatever kind or description
	3919	+	15 that are contained in any closed or sealed can, carton, or
	3920	+	16 container, regardless of size; but "soft drinks" does not
	3921	+	17 include coffee, tea, non-carbonated water, infant formula,
	3922	+	18 milk or milk products as defined in the Grade A Pasteurized
	3923	+	19 Milk and Milk Products Act, or drinks containing 50% or more
	3924	+	20 natural fruit or vegetable juice.
	3925	+	21 Notwithstanding any other provisions of this Act,
	3926	+	22 beginning September 1, 2009, "soft drinks" means non-alcoholic
	3927	+	23 beverages that contain natural or artificial sweeteners. "Soft
	3928	+	24 drinks" does do not include beverages that contain milk or
	3929	+	25 milk products, soy, rice or similar milk substitutes, or
	3930	+	26 greater than 50% of vegetable or fruit juice by volume.
	3931	+
	3932	+
	3933	+
	3934	+
	3935	+
	3936	+	SB1963 Enrolled - 110 - LRB103 25648 HLH 51997 b
	3937	+
	3938	+
	3939	+	SB1963 Enrolled- 111 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 111 - LRB103 25648 HLH 51997 b
	3940	+	SB1963 Enrolled - 111 - LRB103 25648 HLH 51997 b
	3941	+	1 Until August 1, 2009, and notwithstanding any other
	3942	+	2 provisions of this Act, "food for human consumption that is to
	3943	+	3 be consumed off the premises where it is sold" includes all
	3944	+	4 food sold through a vending machine, except soft drinks and
	3945	+	5 food products that are dispensed hot from a vending machine,
	3946	+	6 regardless of the location of the vending machine. Beginning
	3947	+	7 August 1, 2009, and notwithstanding any other provisions of
	3948	+	8 this Act, "food for human consumption that is to be consumed
	3949	+	9 off the premises where it is sold" includes all food sold
	3950	+	10 through a vending machine, except soft drinks, candy, and food
	3951	+	11 products that are dispensed hot from a vending machine,
	3952	+	12 regardless of the location of the vending machine.
	3953	+	13 Notwithstanding any other provisions of this Act,
	3954	+	14 beginning September 1, 2009, "food for human consumption that
	3955	+	15 is to be consumed off the premises where it is sold" does not
	3956	+	16 include candy. For purposes of this Section, "candy" means a
	3957	+	17 preparation of sugar, honey, or other natural or artificial
	3958	+	18 sweeteners in combination with chocolate, fruits, nuts or
	3959	+	19 other ingredients or flavorings in the form of bars, drops, or
	3960	+	20 pieces. "Candy" does not include any preparation that contains
	3961	+	21 flour or requires refrigeration.
	3962	+	22 Notwithstanding any other provisions of this Act,
	3963	+	23 beginning September 1, 2009, "nonprescription medicines and
	3964	+	24 drugs" does not include grooming and hygiene products. For
	3965	+	25 purposes of this Section, "grooming and hygiene products"
	3966	+	26 includes, but is not limited to, soaps and cleaning solutions,
	3967	+
	3968	+
	3969	+
	3970	+
	3971	+
	3972	+	SB1963 Enrolled - 111 - LRB103 25648 HLH 51997 b
	3973	+
	3974	+
	3975	+	SB1963 Enrolled- 112 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 112 - LRB103 25648 HLH 51997 b
	3976	+	SB1963 Enrolled - 112 - LRB103 25648 HLH 51997 b
	3977	+	1 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
	3978	+	2 lotions and screens, unless those products are available by
	3979	+	3 prescription only, regardless of whether the products meet the
	3980	+	4 definition of "over-the-counter-drugs". For the purposes of
	3981	+	5 this paragraph, "over-the-counter-drug" means a drug for human
	3982	+	6 use that contains a label that identifies the product as a drug
	3983	+	7 as required by 21 CFR C.F.R. 201.66. The
	3984	+	8 "over-the-counter-drug" label includes:
	3985	+	9 (A) a A "Drug Facts" panel; or
	3986	+	10 (B) a A statement of the "active ingredient(s)" with a
	3987	+	11 list of those ingredients contained in the compound,
	3988	+	12 substance or preparation.
	3989	+	13 Beginning on January 1, 2014 (the effective date of Public
	3990	+	14 Act 98-122), "prescription and nonprescription medicines and
	3991	+	15 drugs" includes medical cannabis purchased from a registered
	3992	+	16 dispensing organization under the Compassionate Use of Medical
	3993	+	17 Cannabis Program Act.
	3994	+	18 As used in this Section, "adult use cannabis" means
	3995	+	19 cannabis subject to tax under the Cannabis Cultivation
	3996	+	20 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
	3997	+	21 and does not include cannabis subject to tax under the
	3998	+	22 Compassionate Use of Medical Cannabis Program Act.
	3999	+	23 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
	4000	+	24 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
	4001	+	25 20, Section 20-15, eff. 4-19-22; 102-700, Article 60, Section
	4002	+	26 60-25, eff. 4-19-22; revised 6-1-22.)
	4003	+
	4004	+
	4005	+
	4006	+
	4007	+
	4008	+	SB1963 Enrolled - 112 - LRB103 25648 HLH 51997 b
	4009	+
	4010	+
	4011	+	SB1963 Enrolled- 113 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 113 - LRB103 25648 HLH 51997 b
	4012	+	SB1963 Enrolled - 113 - LRB103 25648 HLH 51997 b
	4013	+	1 Section 10-20. The Retailers' Occupation Tax Act is
	4014	+	2 amended by changing Sections 2-10 and 2d as follows:
	4015	+	3 (35 ILCS 120/2-10)
	4016	+	4 Sec. 2-10. Rate of tax. Unless otherwise provided in this
	4017	+	5 Section, the tax imposed by this Act is at the rate of 6.25% of
	4018	+	6 gross receipts from sales of tangible personal property made
	4019	+	7 in the course of business.
	4020	+	8 Beginning on July 1, 2000 and through December 31, 2000,
	4021	+	9 with respect to motor fuel, as defined in Section 1.1 of the
	4022	+	10 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
	4023	+	11 the Use Tax Act, the tax is imposed at the rate of 1.25%.
	4024	+	12 Beginning on August 6, 2010 through August 15, 2010, and
	4025	+	13 beginning again on August 5, 2022 through August 14, 2022,
	4026	+	14 with respect to sales tax holiday items as defined in Section
	4027	+	15 2-8 of this Act, the tax is imposed at the rate of 1.25%.
	4028	+	16 Within 14 days after July 1, 2000 (the effective date of
	4029	+	17 Public Act 91-872) this amendatory Act of the 91st General
	4030	+	18 Assembly, each retailer of motor fuel and gasohol shall cause
	4031	+	19 the following notice to be posted in a prominently visible
	4032	+	20 place on each retail dispensing device that is used to
	4033	+	21 dispense motor fuel or gasohol in the State of Illinois: "As of
	4034	+	22 July 1, 2000, the State of Illinois has eliminated the State's
	4035	+	23 share of sales tax on motor fuel and gasohol through December
	4036	+	24 31, 2000. The price on this pump should reflect the
	4037	+
	4038	+
	4039	+
	4040	+
	4041	+
	4042	+	SB1963 Enrolled - 113 - LRB103 25648 HLH 51997 b
	4043	+
	4044	+
	4045	+	SB1963 Enrolled- 114 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 114 - LRB103 25648 HLH 51997 b
	4046	+	SB1963 Enrolled - 114 - LRB103 25648 HLH 51997 b
	4047	+	1 elimination of the tax." The notice shall be printed in bold
	4048	+	2 print on a sign that is no smaller than 4 inches by 8 inches.
	4049	+	3 The sign shall be clearly visible to customers. Any retailer
	4050	+	4 who fails to post or maintain a required sign through December
	4051	+	5 31, 2000 is guilty of a petty offense for which the fine shall
	4052	+	6 be $500 per day per each retail premises where a violation
	4053	+	7 occurs.
	4054	+	8 With respect to gasohol, as defined in the Use Tax Act, the
	4055	+	9 tax imposed by this Act applies to (i) 70% of the proceeds of
	4056	+	10 sales made on or after January 1, 1990, and before July 1,
	4057	+	11 2003, (ii) 80% of the proceeds of sales made on or after July
	4058	+	12 1, 2003 and on or before July 1, 2017, and (iii) 100% of the
	4059	+	13 proceeds of sales made after July 1, 2017 and prior to January
	4060	+	14 1, 2024, (iv) 90% of the proceeds of sales made on or after
	4061	+	15 January 1, 2024 and on or before December 31, 2028, and (v)
	4062	+	16 100% of the proceeds of sales made after December 31, 2028
	4063	+	17 thereafter. If, at any time, however, the tax under this Act on
	4064	+	18 sales of gasohol, as defined in the Use Tax Act, is imposed at
	4065	+	19 the rate of 1.25%, then the tax imposed by this Act applies to
	4066	+	20 100% of the proceeds of sales of gasohol made during that time.
	4067	+	21 With respect to mid-range ethanol blends, as defined in
	4068	+	22 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
	4069	+	23 applies to (i) 80% of the proceeds of sales made on or after
	4070	+	24 January 1, 2024 and on or before December 31, 2028 and (ii)
	4071	+	25 100% of the proceeds of sales made after December 31, 2028. If,
	4072	+	26 at any time, however, the tax under this Act on sales of
	4073	+
	4074	+
	4075	+
	4076	+
	4077	+
	4078	+	SB1963 Enrolled - 114 - LRB103 25648 HLH 51997 b
	4079	+
	4080	+
	4081	+	SB1963 Enrolled- 115 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 115 - LRB103 25648 HLH 51997 b
	4082	+	SB1963 Enrolled - 115 - LRB103 25648 HLH 51997 b
	4083	+	1 mid-range ethanol blends is imposed at the rate of 1.25%, then
	4084	+	2 the tax imposed by this Act applies to 100% of the proceeds of
	4085	+	3 sales of mid-range ethanol blends made during that time.
	4086	+	4 With respect to majority blended ethanol fuel, as defined
	4087	+	5 in the Use Tax Act, the tax imposed by this Act does not apply
	4088	+	6 to the proceeds of sales made on or after July 1, 2003 and on
	4089	+	7 or before December 31, 2028 December 31, 2023 but applies to
	4090	+	8 100% of the proceeds of sales made thereafter.
	4091	+	9 With respect to biodiesel blends, as defined in the Use
	4092	+	10 Tax Act, with no less than 1% and no more than 10% biodiesel,
	4093	+	11 the tax imposed by this Act applies to (i) 80% of the proceeds
	4094	+	12 of sales made on or after July 1, 2003 and on or before
	4095	+	13 December 31, 2018 and (ii) 100% of the proceeds of sales made
	4096	+	14 after December 31, 2018 and before January 1, 2024. On and
	4097	+	15 after January 1, 2024 and on or before December 31, 2030, the
	4098	+	16 taxation of biodiesel, renewable diesel, and biodiesel blends
	4099	+	17 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
	4100	+	18 at any time, however, the tax under this Act on sales of
	4101	+	19 biodiesel blends, as defined in the Use Tax Act, with no less
	4102	+	20 than 1% and no more than 10% biodiesel is imposed at the rate
	4103	+	21 of 1.25%, then the tax imposed by this Act applies to 100% of
	4104	+	22 the proceeds of sales of biodiesel blends with no less than 1%
	4105	+	23 and no more than 10% biodiesel made during that time.
	4106	+	24 With respect to biodiesel, as defined in the Use Tax Act,
	4107	+	25 and biodiesel blends, as defined in the Use Tax Act, with more
	4108	+	26 than 10% but no more than 99% biodiesel, the tax imposed by
	4109	+
	4110	+
	4111	+
	4112	+
	4113	+
	4114	+	SB1963 Enrolled - 115 - LRB103 25648 HLH 51997 b
	4115	+
	4116	+
	4117	+	SB1963 Enrolled- 116 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 116 - LRB103 25648 HLH 51997 b
	4118	+	SB1963 Enrolled - 116 - LRB103 25648 HLH 51997 b
	4119	+	1 this Act does not apply to the proceeds of sales made on or
	4120	+	2 after July 1, 2003 and on or before December 31, 2023. On and
	4121	+	3 after January 1, 2024 and on or before December 31, 2030, the
	4122	+	4 taxation of biodiesel, renewable diesel, and biodiesel blends
	4123	+	5 shall be as provided in Section 3-5.1 of the Use Tax Act.
	4124	+	6 Until July 1, 2022 and beginning again on July 1, 2023,
	4125	+	7 with respect to food for human consumption that is to be
	4126	+	8 consumed off the premises where it is sold (other than
	4127	+	9 alcoholic beverages, food consisting of or infused with adult
	4128	+	10 use cannabis, soft drinks, and food that has been prepared for
	4129	+	11 immediate consumption), the tax is imposed at the rate of 1%.
	4130	+	12 Beginning July 1, 2022 and until July 1, 2023, with respect to
	4131	+	13 food for human consumption that is to be consumed off the
	4132	+	14 premises where it is sold (other than alcoholic beverages,
	4133	+	15 food consisting of or infused with adult use cannabis, soft
	4134	+	16 drinks, and food that has been prepared for immediate
	4135	+	17 consumption), the tax is imposed at the rate of 0%.
	4136	+	18 With respect to prescription and nonprescription
	4137	+	19 medicines, drugs, medical appliances, products classified as
	4138	+	20 Class III medical devices by the United States Food and Drug
	4139	+	21 Administration that are used for cancer treatment pursuant to
	4140	+	22 a prescription, as well as any accessories and components
	4141	+	23 related to those devices, modifications to a motor vehicle for
	4142	+	24 the purpose of rendering it usable by a person with a
	4143	+	25 disability, and insulin, blood sugar testing materials,
	4144	+	26 syringes, and needles used by human diabetics, the tax is
	4145	+
	4146	+
	4147	+
	4148	+
	4149	+
	4150	+	SB1963 Enrolled - 116 - LRB103 25648 HLH 51997 b
	4151	+
	4152	+
	4153	+	SB1963 Enrolled- 117 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 117 - LRB103 25648 HLH 51997 b
	4154	+	SB1963 Enrolled - 117 - LRB103 25648 HLH 51997 b
	4155	+	1 imposed at the rate of 1%. For the purposes of this Section,
	4156	+	2 until September 1, 2009: the term "soft drinks" means any
	4157	+	3 complete, finished, ready-to-use, non-alcoholic drink, whether
	4158	+	4 carbonated or not, including, but not limited to, soda water,
	4159	+	5 cola, fruit juice, vegetable juice, carbonated water, and all
	4160	+	6 other preparations commonly known as soft drinks of whatever
	4161	+	7 kind or description that are contained in any closed or sealed
	4162	+	8 bottle, can, carton, or container, regardless of size; but
	4163	+	9 "soft drinks" does not include coffee, tea, non-carbonated
	4164	+	10 water, infant formula, milk or milk products as defined in the
	4165	+	11 Grade A Pasteurized Milk and Milk Products Act, or drinks
	4166	+	12 containing 50% or more natural fruit or vegetable juice.
	4167	+	13 Notwithstanding any other provisions of this Act,
	4168	+	14 beginning September 1, 2009, "soft drinks" means non-alcoholic
	4169	+	15 beverages that contain natural or artificial sweeteners. "Soft
	4170	+	16 drinks" does do not include beverages that contain milk or
	4171	+	17 milk products, soy, rice or similar milk substitutes, or
	4172	+	18 greater than 50% of vegetable or fruit juice by volume.
	4173	+	19 Until August 1, 2009, and notwithstanding any other
	4174	+	20 provisions of this Act, "food for human consumption that is to
	4175	+	21 be consumed off the premises where it is sold" includes all
	4176	+	22 food sold through a vending machine, except soft drinks and
	4177	+	23 food products that are dispensed hot from a vending machine,
	4178	+	24 regardless of the location of the vending machine. Beginning
	4179	+	25 August 1, 2009, and notwithstanding any other provisions of
	4180	+	26 this Act, "food for human consumption that is to be consumed
	4181	+
	4182	+
	4183	+
	4184	+
	4185	+
	4186	+	SB1963 Enrolled - 117 - LRB103 25648 HLH 51997 b
	4187	+
	4188	+
	4189	+	SB1963 Enrolled- 118 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 118 - LRB103 25648 HLH 51997 b
	4190	+	SB1963 Enrolled - 118 - LRB103 25648 HLH 51997 b
	4191	+	1 off the premises where it is sold" includes all food sold
	4192	+	2 through a vending machine, except soft drinks, candy, and food
	4193	+	3 products that are dispensed hot from a vending machine,
	4194	+	4 regardless of the location of the vending machine.
	4195	+	5 Notwithstanding any other provisions of this Act,
	4196	+	6 beginning September 1, 2009, "food for human consumption that
	4197	+	7 is to be consumed off the premises where it is sold" does not
	4198	+	8 include candy. For purposes of this Section, "candy" means a
	4199	+	9 preparation of sugar, honey, or other natural or artificial
	4200	+	10 sweeteners in combination with chocolate, fruits, nuts or
	4201	+	11 other ingredients or flavorings in the form of bars, drops, or
	4202	+	12 pieces. "Candy" does not include any preparation that contains
	4203	+	13 flour or requires refrigeration.
	4204	+	14 Notwithstanding any other provisions of this Act,
	4205	+	15 beginning September 1, 2009, "nonprescription medicines and
	4206	+	16 drugs" does not include grooming and hygiene products. For
	4207	+	17 purposes of this Section, "grooming and hygiene products"
	4208	+	18 includes, but is not limited to, soaps and cleaning solutions,
	4209	+	19 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
	4210	+	20 lotions and screens, unless those products are available by
	4211	+	21 prescription only, regardless of whether the products meet the
	4212	+	22 definition of "over-the-counter-drugs". For the purposes of
	4213	+	23 this paragraph, "over-the-counter-drug" means a drug for human
	4214	+	24 use that contains a label that identifies the product as a drug
	4215	+	25 as required by 21 CFR C.F.R. 201.66. The
	4216	+	26 "over-the-counter-drug" label includes:
	4217	+
	4218	+
	4219	+
	4220	+
	4221	+
	4222	+	SB1963 Enrolled - 118 - LRB103 25648 HLH 51997 b
	4223	+
	4224	+
	4225	+	SB1963 Enrolled- 119 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 119 - LRB103 25648 HLH 51997 b
	4226	+	SB1963 Enrolled - 119 - LRB103 25648 HLH 51997 b
	4227	+	1 (A) a A "Drug Facts" panel; or
	4228	+	2 (B) a A statement of the "active ingredient(s)" with a
	4229	+	3 list of those ingredients contained in the compound,
	4230	+	4 substance or preparation.
	4231	+	5 Beginning on January 1, 2014 (the effective date of Public
	4232	+	6 Act 98-122) this amendatory Act of the 98th General Assembly,
	4233	+	7 "prescription and nonprescription medicines and drugs"
	4234	+	8 includes medical cannabis purchased from a registered
	4235	+	9 dispensing organization under the Compassionate Use of Medical
	4236	+	10 Cannabis Program Act.
	4237	+	11 As used in this Section, "adult use cannabis" means
	4238	+	12 cannabis subject to tax under the Cannabis Cultivation
	4239	+	13 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
	4240	+	14 and does not include cannabis subject to tax under the
	4241	+	15 Compassionate Use of Medical Cannabis Program Act.
	4242	+	16 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
	4243	+	17 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff.
	4244	+	18 4-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22;
	4245	+	19 102-700, Article 65, Section 65-10, eff. 4-19-22; revised
	4246	+	20 6-1-22.)
	4247	+	21 (35 ILCS 120/2d) (from Ch. 120, par. 441d)
	4248	+	22 Sec. 2d. Tax prepayment by motor fuel retailer.
	4249	+	23 (a) Any person engaged in the business of selling motor
	4250	+	24 fuel at retail, as defined in the Motor Fuel Tax Law, and who
	4251	+	25 is not a licensed distributor or supplier, as defined in the
	4252	+
	4253	+
	4254	+
	4255	+
	4256	+
	4257	+	SB1963 Enrolled - 119 - LRB103 25648 HLH 51997 b
	4258	+
	4259	+
	4260	+	SB1963 Enrolled- 120 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 120 - LRB103 25648 HLH 51997 b
	4261	+	SB1963 Enrolled - 120 - LRB103 25648 HLH 51997 b
	4262	+	1 Motor Fuel Tax Law, shall prepay to his or her distributor,
	4263	+	2 supplier, or other reseller of motor fuel a portion of the tax
	4264	+	3 imposed by this Act if the distributor, supplier, or other
	4265	+	4 reseller of motor fuel is registered under Section 2a or
	4266	+	5 Section 2c of this Act. The prepayment requirement provided
	4267	+	6 for in this Section does not apply to liquid propane gas.
	4268	+	7 (b) Beginning on July 1, 2000 and through December 31,
	4269	+	8 2000, the Retailers' Occupation Tax paid to the distributor,
	4270	+	9 supplier, or other reseller shall be an amount equal to $0.01
	4271	+	10 per gallon of the motor fuel, except gasohol as defined in
	4272	+	11 Section 2-10 of this Act which shall be an amount equal to
	4273	+	12 $0.01 per gallon, purchased from the distributor, supplier, or
	4274	+	13 other reseller.
	4275	+	14 (c) Before July 1, 2000 and then beginning on January 1,
	4276	+	15 2001 and through June 30, 2003, the Retailers' Occupation Tax
	4277	+	16 paid to the distributor, supplier, or other reseller shall be
	4278	+	17 an amount equal to $0.04 per gallon of the motor fuel, except
	4279	+	18 gasohol as defined in Section 2-10 of this Act which shall be
	4280	+	19 an amount equal to $0.03 per gallon, purchased from the
	4281	+	20 distributor, supplier, or other reseller.
	4282	+	21 (d) Beginning July 1, 2003 and through December 31, 2010,
	4283	+	22 the Retailers' Occupation Tax paid to the distributor,
	4284	+	23 supplier, or other reseller shall be an amount equal to $0.06
	4285	+	24 per gallon of the motor fuel, except gasohol as defined in
	4286	+	25 Section 2-10 of this Act which shall be an amount equal to
	4287	+	26 $0.05 per gallon, purchased from the distributor, supplier, or
	4288	+
	4289	+
	4290	+
	4291	+
	4292	+
	4293	+	SB1963 Enrolled - 120 - LRB103 25648 HLH 51997 b
	4294	+
	4295	+
	4296	+	SB1963 Enrolled- 121 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 121 - LRB103 25648 HLH 51997 b
	4297	+	SB1963 Enrolled - 121 - LRB103 25648 HLH 51997 b
	4298	+	1 other reseller.
	4299	+	2 (e) Beginning on January 1, 2011 and thereafter, the
	4300	+	3 Retailers' Occupation Tax paid to the distributor, supplier,
	4301	+	4 or other reseller shall be at the rate established by the
	4302	+	5 Department under this subsection. The rate shall be
	4303	+	6 established by the Department on January 1 and July 1 of each
	4304	+	7 year using the average selling price, as defined in Section 1
	4305	+	8 of this Act, per gallon of motor fuel sold in the State during
	4306	+	9 the previous 6 months and multiplying that amount by 6.25% to
	4307	+	10 determine the cents per gallon rate. Beginning on January 1,
	4308	+	11 2024 and through December 31, 2028, In the case of biodiesel
	4309	+	12 blends, as defined in Section 3-42 of the Use Tax Act, with no
	4310	+	13 less than 1% and no more than 10% biodiesel, and in the case of
	4311	+	14 gasohol, as defined in Section 3-40 of the Use Tax Act, the
	4312	+	15 rate shall be 90% 80% of the rate established by the Department
	4313	+	16 under this subsection for motor fuel. Beginning on January 1,
	4314	+	17 2024 and through December 31, 2028, in the case of mid-range
	4315	+	18 ethanol blends, as defined in Section 3-44.3 of the Use Tax
	4316	+	19 Act, the rate shall be 80% of the rate established by the
	4317	+	20 Department under this subsection for motor fuel. The
	4318	+	21 Department shall provide persons subject to this Section
	4319	+	22 notice of the rate established under this subsection at least
	4320	+	23 20 days prior to each January 1 and July 1. Publication of the
	4321	+	24 established rate on the Department's internet website shall
	4322	+	25 constitute sufficient notice under this Section. The
	4323	+	26 Department may use data derived from independent surveys
	4324	+
	4325	+
	4326	+
	4327	+
	4328	+
	4329	+	SB1963 Enrolled - 121 - LRB103 25648 HLH 51997 b
	4330	+
	4331	+
	4332	+	SB1963 Enrolled- 122 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 122 - LRB103 25648 HLH 51997 b
	4333	+	SB1963 Enrolled - 122 - LRB103 25648 HLH 51997 b
	4334	+	1 conducted or accumulated by third parties to determine the
	4335	+	2 average selling price per gallon of motor fuel sold in the
	4336	+	3 State.
	4337	+	4 (f) Any person engaged in the business of selling motor
	4338	+	5 fuel at retail shall be entitled to a credit against tax due
	4339	+	6 under this Act in an amount equal to the tax paid to the
	4340	+	7 distributor, supplier, or other reseller.
	4341	+	8 (g) Every distributor, supplier, or other reseller
	4342	+	9 registered as provided in Section 2a or Section 2c of this Act
	4343	+	10 shall remit the prepaid tax on all motor fuel that is due from
	4344	+	11 any person engaged in the business of selling at retail motor
	4345	+	12 fuel with the returns filed under Section 2f or Section 3 of
	4346	+	13 this Act, but the vendors discount provided in Section 3 shall
	4347	+	14 not apply to the amount of prepaid tax that is remitted. Any
	4348	+	15 distributor or supplier who fails to properly collect and
	4349	+	16 remit the tax shall be liable for the tax. For purposes of this
	4350	+	17 Section, the prepaid tax is due on invoiced gallons sold
	4351	+	18 during a month by the 20th day of the following month.
	4352	+	19 (Source: P.A. 96-1384, eff. 7-29-10.)
	4353	+	20 ARTICLE 15. ELECTRIC GENERATION EQUIPMENT
	4354	+	21 Section 15-5. The Use Tax Act is amended by changing
	4355	+	22 Section 3-5 as follows:
	4356	+	23 (35 ILCS 105/3-5)
	4357	+
	4358	+
	4359	+
	4360	+
	4361	+
	4362	+	SB1963 Enrolled - 122 - LRB103 25648 HLH 51997 b
	4363	+
	4364	+
	4365	+	SB1963 Enrolled- 123 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 123 - LRB103 25648 HLH 51997 b
	4366	+	SB1963 Enrolled - 123 - LRB103 25648 HLH 51997 b
	4367	+	1 Sec. 3-5. Exemptions. Use of the following tangible
	4368	+	2 personal property is exempt from the tax imposed by this Act:
	4369	+	3 (1) Personal property purchased from a corporation,
	4370	+	4 society, association, foundation, institution, or
	4371	+	5 organization, other than a limited liability company, that is
	4372	+	6 organized and operated as a not-for-profit service enterprise
	4373	+	7 for the benefit of persons 65 years of age or older if the
	4374	+	8 personal property was not purchased by the enterprise for the
	4375	+	9 purpose of resale by the enterprise.
	4376	+	10 (2) Personal property purchased by a not-for-profit
	4377	+	11 Illinois county fair association for use in conducting,
	4378	+	12 operating, or promoting the county fair.
	4379	+	13 (3) Personal property purchased by a not-for-profit arts
	4380	+	14 or cultural organization that establishes, by proof required
	4381	+	15 by the Department by rule, that it has received an exemption
	4382	+	16 under Section 501(c)(3) of the Internal Revenue Code and that
	4383	+	17 is organized and operated primarily for the presentation or
	4384	+	18 support of arts or cultural programming, activities, or
	4385	+	19 services. These organizations include, but are not limited to,
	4386	+	20 music and dramatic arts organizations such as symphony
	4387	+	21 orchestras and theatrical groups, arts and cultural service
	4388	+	22 organizations, local arts councils, visual arts organizations,
	4389	+	23 and media arts organizations. On and after July 1, 2001 (the
	4390	+	24 effective date of Public Act 92-35), however, an entity
	4391	+	25 otherwise eligible for this exemption shall not make tax-free
	4392	+	26 purchases unless it has an active identification number issued
	4393	+
	4394	+
	4395	+
	4396	+
	4397	+
	4398	+	SB1963 Enrolled - 123 - LRB103 25648 HLH 51997 b
	4399	+
	4400	+
	4401	+	SB1963 Enrolled- 124 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 124 - LRB103 25648 HLH 51997 b
	4402	+	SB1963 Enrolled - 124 - LRB103 25648 HLH 51997 b
	4403	+	1 by the Department.
	4404	+	2 (4) Personal property purchased by a governmental body, by
	4405	+	3 a corporation, society, association, foundation, or
	4406	+	4 institution organized and operated exclusively for charitable,
	4407	+	5 religious, or educational purposes, or by a not-for-profit
	4408	+	6 corporation, society, association, foundation, institution, or
	4409	+	7 organization that has no compensated officers or employees and
	4410	+	8 that is organized and operated primarily for the recreation of
	4411	+	9 persons 55 years of age or older. A limited liability company
	4412	+	10 may qualify for the exemption under this paragraph only if the
	4413	+	11 limited liability company is organized and operated
	4414	+	12 exclusively for educational purposes. On and after July 1,
	4415	+	13 1987, however, no entity otherwise eligible for this exemption
	4416	+	14 shall make tax-free purchases unless it has an active
	4417	+	15 exemption identification number issued by the Department.
	4418	+	16 (5) Until July 1, 2003, a passenger car that is a
	4419	+	17 replacement vehicle to the extent that the purchase price of
	4420	+	18 the car is subject to the Replacement Vehicle Tax.
	4421	+	19 (6) Until July 1, 2003 and beginning again on September 1,
	4422	+	20 2004 through August 30, 2014, graphic arts machinery and
	4423	+	21 equipment, including repair and replacement parts, both new
	4424	+	22 and used, and including that manufactured on special order,
	4425	+	23 certified by the purchaser to be used primarily for graphic
	4426	+	24 arts production, and including machinery and equipment
	4427	+	25 purchased for lease. Equipment includes chemicals or chemicals
	4428	+	26 acting as catalysts but only if the chemicals or chemicals
	4429	+
	4430	+
	4431	+
	4432	+
	4433	+
	4434	+	SB1963 Enrolled - 124 - LRB103 25648 HLH 51997 b
	4435	+
	4436	+
	4437	+	SB1963 Enrolled- 125 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 125 - LRB103 25648 HLH 51997 b
	4438	+	SB1963 Enrolled - 125 - LRB103 25648 HLH 51997 b
	4439	+	1 acting as catalysts effect a direct and immediate change upon
	4440	+	2 a graphic arts product. Beginning on July 1, 2017, graphic
	4441	+	3 arts machinery and equipment is included in the manufacturing
	4442	+	4 and assembling machinery and equipment exemption under
	4443	+	5 paragraph (18).
	4444	+	6 (7) Farm chemicals.
	4445	+	7 (8) Legal tender, currency, medallions, or gold or silver
	4446	+	8 coinage issued by the State of Illinois, the government of the
	4447	+	9 United States of America, or the government of any foreign
	4448	+	10 country, and bullion.
	4449	+	11 (9) Personal property purchased from a teacher-sponsored
	4450	+	12 student organization affiliated with an elementary or
	4451	+	13 secondary school located in Illinois.
	4452	+	14 (10) A motor vehicle that is used for automobile renting,
	4453	+	15 as defined in the Automobile Renting Occupation and Use Tax
	4454	+	16 Act.
	4455	+	17 (11) Farm machinery and equipment, both new and used,
	4456	+	18 including that manufactured on special order, certified by the
	4457	+	19 purchaser to be used primarily for production agriculture or
	4458	+	20 State or federal agricultural programs, including individual
	4459	+	21 replacement parts for the machinery and equipment, including
	4460	+	22 machinery and equipment purchased for lease, and including
	4461	+	23 implements of husbandry defined in Section 1-130 of the
	4462	+	24 Illinois Vehicle Code, farm machinery and agricultural
	4463	+	25 chemical and fertilizer spreaders, and nurse wagons required
	4464	+	26 to be registered under Section 3-809 of the Illinois Vehicle
	4465	+
	4466	+
	4467	+
	4468	+
	4469	+
	4470	+	SB1963 Enrolled - 125 - LRB103 25648 HLH 51997 b
	4471	+
	4472	+
	4473	+	SB1963 Enrolled- 126 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 126 - LRB103 25648 HLH 51997 b
	4474	+	SB1963 Enrolled - 126 - LRB103 25648 HLH 51997 b
	4475	+	1 Code, but excluding other motor vehicles required to be
	4476	+	2 registered under the Illinois Vehicle Code. Horticultural
	4477	+	3 polyhouses or hoop houses used for propagating, growing, or
	4478	+	4 overwintering plants shall be considered farm machinery and
	4479	+	5 equipment under this item (11). Agricultural chemical tender
	4480	+	6 tanks and dry boxes shall include units sold separately from a
	4481	+	7 motor vehicle required to be licensed and units sold mounted
	4482	+	8 on a motor vehicle required to be licensed if the selling price
	4483	+	9 of the tender is separately stated.
	4484	+	10 Farm machinery and equipment shall include precision
	4485	+	11 farming equipment that is installed or purchased to be
	4486	+	12 installed on farm machinery and equipment including, but not
	4487	+	13 limited to, tractors, harvesters, sprayers, planters, seeders,
	4488	+	14 or spreaders. Precision farming equipment includes, but is not
	4489	+	15 limited to, soil testing sensors, computers, monitors,
	4490	+	16 software, global positioning and mapping systems, and other
	4491	+	17 such equipment.
	4492	+	18 Farm machinery and equipment also includes computers,
	4493	+	19 sensors, software, and related equipment used primarily in the
	4494	+	20 computer-assisted operation of production agriculture
	4495	+	21 facilities, equipment, and activities such as, but not limited
	4496	+	22 to, the collection, monitoring, and correlation of animal and
	4497	+	23 crop data for the purpose of formulating animal diets and
	4498	+	24 agricultural chemicals.
	4499	+	25 Beginning on January 1, 2024, farm machinery and equipment
	4500	+	26 also includes electrical power generation equipment used
	4501	+
	4502	+
	4503	+
	4504	+
	4505	+
	4506	+	SB1963 Enrolled - 126 - LRB103 25648 HLH 51997 b
	4507	+
	4508	+
	4509	+	SB1963 Enrolled- 127 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 127 - LRB103 25648 HLH 51997 b
	4510	+	SB1963 Enrolled - 127 - LRB103 25648 HLH 51997 b
	4511	+	1 primarily for production agriculture.
	4512	+	2 This item (11) is exempt from the provisions of Section
	4513	+	3 3-90.
	4514	+	4 (12) Until June 30, 2013, fuel and petroleum products sold
	4515	+	5 to or used by an air common carrier, certified by the carrier
	4516	+	6 to be used for consumption, shipment, or storage in the
	4517	+	7 conduct of its business as an air common carrier, for a flight
	4518	+	8 destined for or returning from a location or locations outside
	4519	+	9 the United States without regard to previous or subsequent
	4520	+	10 domestic stopovers.
	4521	+	11 Beginning July 1, 2013, fuel and petroleum products sold
	4522	+	12 to or used by an air carrier, certified by the carrier to be
	4523	+	13 used for consumption, shipment, or storage in the conduct of
	4524	+	14 its business as an air common carrier, for a flight that (i) is
	4525	+	15 engaged in foreign trade or is engaged in trade between the
	4526	+	16 United States and any of its possessions and (ii) transports
	4527	+	17 at least one individual or package for hire from the city of
	4528	+	18 origination to the city of final destination on the same
	4529	+	19 aircraft, without regard to a change in the flight number of
	4530	+	20 that aircraft.
	4531	+	21 (13) Proceeds of mandatory service charges separately
	4532	+	22 stated on customers' bills for the purchase and consumption of
	4533	+	23 food and beverages purchased at retail from a retailer, to the
	4534	+	24 extent that the proceeds of the service charge are in fact
	4535	+	25 turned over as tips or as a substitute for tips to the
	4536	+	26 employees who participate directly in preparing, serving,
	4537	+
	4538	+
	4539	+
	4540	+
	4541	+
	4542	+	SB1963 Enrolled - 127 - LRB103 25648 HLH 51997 b
	4543	+
	4544	+
	4545	+	SB1963 Enrolled- 128 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 128 - LRB103 25648 HLH 51997 b
	4546	+	SB1963 Enrolled - 128 - LRB103 25648 HLH 51997 b
	4547	+	1 hosting or cleaning up the food or beverage function with
	4548	+	2 respect to which the service charge is imposed.
	4549	+	3 (14) Until July 1, 2003, oil field exploration, drilling,
	4550	+	4 and production equipment, including (i) rigs and parts of
	4551	+	5 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
	4552	+	6 pipe and tubular goods, including casing and drill strings,
	4553	+	7 (iii) pumps and pump-jack units, (iv) storage tanks and flow
	4554	+	8 lines, (v) any individual replacement part for oil field
	4555	+	9 exploration, drilling, and production equipment, and (vi)
	4556	+	10 machinery and equipment purchased for lease; but excluding
	4557	+	11 motor vehicles required to be registered under the Illinois
	4558	+	12 Vehicle Code.
	4559	+	13 (15) Photoprocessing machinery and equipment, including
	4560	+	14 repair and replacement parts, both new and used, including
	4561	+	15 that manufactured on special order, certified by the purchaser
	4562	+	16 to be used primarily for photoprocessing, and including
	4563	+	17 photoprocessing machinery and equipment purchased for lease.
	4564	+	18 (16) Until July 1, 2028, coal and aggregate exploration,
	4565	+	19 mining, off-highway hauling, processing, maintenance, and
	4566	+	20 reclamation equipment, including replacement parts and
	4567	+	21 equipment, and including equipment purchased for lease, but
	4568	+	22 excluding motor vehicles required to be registered under the
	4569	+	23 Illinois Vehicle Code. The changes made to this Section by
	4570	+	24 Public Act 97-767 apply on and after July 1, 2003, but no claim
	4571	+	25 for credit or refund is allowed on or after August 16, 2013
	4572	+	26 (the effective date of Public Act 98-456) for such taxes paid
	4573	+
	4574	+
	4575	+
	4576	+
	4577	+
	4578	+	SB1963 Enrolled - 128 - LRB103 25648 HLH 51997 b
	4579	+
	4580	+
	4581	+	SB1963 Enrolled- 129 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 129 - LRB103 25648 HLH 51997 b
	4582	+	SB1963 Enrolled - 129 - LRB103 25648 HLH 51997 b
	4583	+	1 during the period beginning July 1, 2003 and ending on August
	4584	+	2 16, 2013 (the effective date of Public Act 98-456).
	4585	+	3 (17) Until July 1, 2003, distillation machinery and
	4586	+	4 equipment, sold as a unit or kit, assembled or installed by the
	4587	+	5 retailer, certified by the user to be used only for the
	4588	+	6 production of ethyl alcohol that will be used for consumption
	4589	+	7 as motor fuel or as a component of motor fuel for the personal
	4590	+	8 use of the user, and not subject to sale or resale.
	4591	+	9 (18) Manufacturing and assembling machinery and equipment
	4592	+	10 used primarily in the process of manufacturing or assembling
	4593	+	11 tangible personal property for wholesale or retail sale or
	4594	+	12 lease, whether that sale or lease is made directly by the
	4595	+	13 manufacturer or by some other person, whether the materials
	4596	+	14 used in the process are owned by the manufacturer or some other
	4597	+	15 person, or whether that sale or lease is made apart from or as
	4598	+	16 an incident to the seller's engaging in the service occupation
	4599	+	17 of producing machines, tools, dies, jigs, patterns, gauges, or
	4600	+	18 other similar items of no commercial value on special order
	4601	+	19 for a particular purchaser. The exemption provided by this
	4602	+	20 paragraph (18) includes production related tangible personal
	4603	+	21 property, as defined in Section 3-50, purchased on or after
	4604	+	22 July 1, 2019. The exemption provided by this paragraph (18)
	4605	+	23 does not include machinery and equipment used in (i) the
	4606	+	24 generation of electricity for wholesale or retail sale; (ii)
	4607	+	25 the generation or treatment of natural or artificial gas for
	4608	+	26 wholesale or retail sale that is delivered to customers
	4609	+
	4610	+
	4611	+
	4612	+
	4613	+
	4614	+	SB1963 Enrolled - 129 - LRB103 25648 HLH 51997 b
	4615	+
	4616	+
	4617	+	SB1963 Enrolled- 130 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 130 - LRB103 25648 HLH 51997 b
	4618	+	SB1963 Enrolled - 130 - LRB103 25648 HLH 51997 b
	4619	+	1 through pipes, pipelines, or mains; or (iii) the treatment of
	4620	+	2 water for wholesale or retail sale that is delivered to
	4621	+	3 customers through pipes, pipelines, or mains. The provisions
	4622	+	4 of Public Act 98-583 are declaratory of existing law as to the
	4623	+	5 meaning and scope of this exemption. Beginning on July 1,
	4624	+	6 2017, the exemption provided by this paragraph (18) includes,
	4625	+	7 but is not limited to, graphic arts machinery and equipment,
	4626	+	8 as defined in paragraph (6) of this Section.
	4627	+	9 (19) Personal property delivered to a purchaser or
	4628	+	10 purchaser's donee inside Illinois when the purchase order for
	4629	+	11 that personal property was received by a florist located
	4630	+	12 outside Illinois who has a florist located inside Illinois
	4631	+	13 deliver the personal property.
	4632	+	14 (20) Semen used for artificial insemination of livestock
	4633	+	15 for direct agricultural production.
	4634	+	16 (21) Horses, or interests in horses, registered with and
	4635	+	17 meeting the requirements of any of the Arabian Horse Club
	4636	+	18 Registry of America, Appaloosa Horse Club, American Quarter
	4637	+	19 Horse Association, United States Trotting Association, or
	4638	+	20 Jockey Club, as appropriate, used for purposes of breeding or
	4639	+	21 racing for prizes. This item (21) is exempt from the
	4640	+	22 provisions of Section 3-90, and the exemption provided for
	4641	+	23 under this item (21) applies for all periods beginning May 30,
	4642	+	24 1995, but no claim for credit or refund is allowed on or after
	4643	+	25 January 1, 2008 for such taxes paid during the period
	4644	+	26 beginning May 30, 2000 and ending on January 1, 2008.
	4645	+
	4646	+
	4647	+
	4648	+
	4649	+
	4650	+	SB1963 Enrolled - 130 - LRB103 25648 HLH 51997 b
	4651	+
	4652	+
	4653	+	SB1963 Enrolled- 131 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 131 - LRB103 25648 HLH 51997 b
	4654	+	SB1963 Enrolled - 131 - LRB103 25648 HLH 51997 b
	4655	+	1 (22) Computers and communications equipment utilized for
	4656	+	2 any hospital purpose and equipment used in the diagnosis,
	4657	+	3 analysis, or treatment of hospital patients purchased by a
	4658	+	4 lessor who leases the equipment, under a lease of one year or
	4659	+	5 longer executed or in effect at the time the lessor would
	4660	+	6 otherwise be subject to the tax imposed by this Act, to a
	4661	+	7 hospital that has been issued an active tax exemption
	4662	+	8 identification number by the Department under Section 1g of
	4663	+	9 the Retailers' Occupation Tax Act. If the equipment is leased
	4664	+	10 in a manner that does not qualify for this exemption or is used
	4665	+	11 in any other non-exempt manner, the lessor shall be liable for
	4666	+	12 the tax imposed under this Act or the Service Use Tax Act, as
	4667	+	13 the case may be, based on the fair market value of the property
	4668	+	14 at the time the non-qualifying use occurs. No lessor shall
	4669	+	15 collect or attempt to collect an amount (however designated)
	4670	+	16 that purports to reimburse that lessor for the tax imposed by
	4671	+	17 this Act or the Service Use Tax Act, as the case may be, if the
	4672	+	18 tax has not been paid by the lessor. If a lessor improperly
	4673	+	19 collects any such amount from the lessee, the lessee shall
	4674	+	20 have a legal right to claim a refund of that amount from the
	4675	+	21 lessor. If, however, that amount is not refunded to the lessee
	4676	+	22 for any reason, the lessor is liable to pay that amount to the
	4677	+	23 Department.
	4678	+	24 (23) Personal property purchased by a lessor who leases
	4679	+	25 the property, under a lease of one year or longer executed or
	4680	+	26 in effect at the time the lessor would otherwise be subject to
	4681	+
	4682	+
	4683	+
	4684	+
	4685	+
	4686	+	SB1963 Enrolled - 131 - LRB103 25648 HLH 51997 b
	4687	+
	4688	+
	4689	+	SB1963 Enrolled- 132 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 132 - LRB103 25648 HLH 51997 b
	4690	+	SB1963 Enrolled - 132 - LRB103 25648 HLH 51997 b
	4691	+	1 the tax imposed by this Act, to a governmental body that has
	4692	+	2 been issued an active sales tax exemption identification
	4693	+	3 number by the Department under Section 1g of the Retailers'
	4694	+	4 Occupation Tax Act. If the property is leased in a manner that
	4695	+	5 does not qualify for this exemption or used in any other
	4696	+	6 non-exempt manner, the lessor shall be liable for the tax
	4697	+	7 imposed under this Act or the Service Use Tax Act, as the case
	4698	+	8 may be, based on the fair market value of the property at the
	4699	+	9 time the non-qualifying use occurs. No lessor shall collect or
	4700	+	10 attempt to collect an amount (however designated) that
	4701	+	11 purports to reimburse that lessor for the tax imposed by this
	4702	+	12 Act or the Service Use Tax Act, as the case may be, if the tax
	4703	+	13 has not been paid by the lessor. If a lessor improperly
	4704	+	14 collects any such amount from the lessee, the lessee shall
	4705	+	15 have a legal right to claim a refund of that amount from the
	4706	+	16 lessor. If, however, that amount is not refunded to the lessee
	4707	+	17 for any reason, the lessor is liable to pay that amount to the
	4708	+	18 Department.
	4709	+	19 (24) Beginning with taxable years ending on or after
	4710	+	20 December 31, 1995 and ending with taxable years ending on or
	4711	+	21 before December 31, 2004, personal property that is donated
	4712	+	22 for disaster relief to be used in a State or federally declared
	4713	+	23 disaster area in Illinois or bordering Illinois by a
	4714	+	24 manufacturer or retailer that is registered in this State to a
	4715	+	25 corporation, society, association, foundation, or institution
	4716	+	26 that has been issued a sales tax exemption identification
	4717	+
	4718	+
	4719	+
	4720	+
	4721	+
	4722	+	SB1963 Enrolled - 132 - LRB103 25648 HLH 51997 b
	4723	+
	4724	+
	4725	+	SB1963 Enrolled- 133 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 133 - LRB103 25648 HLH 51997 b
	4726	+	SB1963 Enrolled - 133 - LRB103 25648 HLH 51997 b
	4727	+	1 number by the Department that assists victims of the disaster
	4728	+	2 who reside within the declared disaster area.
	4729	+	3 (25) Beginning with taxable years ending on or after
	4730	+	4 December 31, 1995 and ending with taxable years ending on or
	4731	+	5 before December 31, 2004, personal property that is used in
	4732	+	6 the performance of infrastructure repairs in this State,
	4733	+	7 including but not limited to municipal roads and streets,
	4734	+	8 access roads, bridges, sidewalks, waste disposal systems,
	4735	+	9 water and sewer line extensions, water distribution and
	4736	+	10 purification facilities, storm water drainage and retention
	4737	+	11 facilities, and sewage treatment facilities, resulting from a
	4738	+	12 State or federally declared disaster in Illinois or bordering
	4739	+	13 Illinois when such repairs are initiated on facilities located
	4740	+	14 in the declared disaster area within 6 months after the
	4741	+	15 disaster.
	4742	+	16 (26) Beginning July 1, 1999, game or game birds purchased
	4743	+	17 at a "game breeding and hunting preserve area" as that term is
	4744	+	18 used in the Wildlife Code. This paragraph is exempt from the
	4745	+	19 provisions of Section 3-90.
	4746	+	20 (27) A motor vehicle, as that term is defined in Section
	4747	+	21 1-146 of the Illinois Vehicle Code, that is donated to a
	4748	+	22 corporation, limited liability company, society, association,
	4749	+	23 foundation, or institution that is determined by the
	4750	+	24 Department to be organized and operated exclusively for
	4751	+	25 educational purposes. For purposes of this exemption, "a
	4752	+	26 corporation, limited liability company, society, association,
	4753	+
	4754	+
	4755	+
	4756	+
	4757	+
	4758	+	SB1963 Enrolled - 133 - LRB103 25648 HLH 51997 b
	4759	+
	4760	+
	4761	+	SB1963 Enrolled- 134 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 134 - LRB103 25648 HLH 51997 b
	4762	+	SB1963 Enrolled - 134 - LRB103 25648 HLH 51997 b
	4763	+	1 foundation, or institution organized and operated exclusively
	4764	+	2 for educational purposes" means all tax-supported public
	4765	+	3 schools, private schools that offer systematic instruction in
	4766	+	4 useful branches of learning by methods common to public
	4767	+	5 schools and that compare favorably in their scope and
	4768	+	6 intensity with the course of study presented in tax-supported
	4769	+	7 schools, and vocational or technical schools or institutes
	4770	+	8 organized and operated exclusively to provide a course of
	4771	+	9 study of not less than 6 weeks duration and designed to prepare
	4772	+	10 individuals to follow a trade or to pursue a manual,
	4773	+	11 technical, mechanical, industrial, business, or commercial
	4774	+	12 occupation.
	4775	+	13 (28) Beginning January 1, 2000, personal property,
	4776	+	14 including food, purchased through fundraising events for the
	4777	+	15 benefit of a public or private elementary or secondary school,
	4778	+	16 a group of those schools, or one or more school districts if
	4779	+	17 the events are sponsored by an entity recognized by the school
	4780	+	18 district that consists primarily of volunteers and includes
	4781	+	19 parents and teachers of the school children. This paragraph
	4782	+	20 does not apply to fundraising events (i) for the benefit of
	4783	+	21 private home instruction or (ii) for which the fundraising
	4784	+	22 entity purchases the personal property sold at the events from
	4785	+	23 another individual or entity that sold the property for the
	4786	+	24 purpose of resale by the fundraising entity and that profits
	4787	+	25 from the sale to the fundraising entity. This paragraph is
	4788	+	26 exempt from the provisions of Section 3-90.
	4789	+
	4790	+
	4791	+
	4792	+
	4793	+
	4794	+	SB1963 Enrolled - 134 - LRB103 25648 HLH 51997 b
	4795	+
	4796	+
	4797	+	SB1963 Enrolled- 135 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 135 - LRB103 25648 HLH 51997 b
	4798	+	SB1963 Enrolled - 135 - LRB103 25648 HLH 51997 b
	4799	+	1 (29) Beginning January 1, 2000 and through December 31,
	4800	+	2 2001, new or used automatic vending machines that prepare and
	4801	+	3 serve hot food and beverages, including coffee, soup, and
	4802	+	4 other items, and replacement parts for these machines.
	4803	+	5 Beginning January 1, 2002 and through June 30, 2003, machines
	4804	+	6 and parts for machines used in commercial, coin-operated
	4805	+	7 amusement and vending business if a use or occupation tax is
	4806	+	8 paid on the gross receipts derived from the use of the
	4807	+	9 commercial, coin-operated amusement and vending machines. This
	4808	+	10 paragraph is exempt from the provisions of Section 3-90.
	4809	+	11 (30) Beginning January 1, 2001 and through June 30, 2016,
	4810	+	12 food for human consumption that is to be consumed off the
	4811	+	13 premises where it is sold (other than alcoholic beverages,
	4812	+	14 soft drinks, and food that has been prepared for immediate
	4813	+	15 consumption) and prescription and nonprescription medicines,
	4814	+	16 drugs, medical appliances, and insulin, urine testing
	4815	+	17 materials, syringes, and needles used by diabetics, for human
	4816	+	18 use, when purchased for use by a person receiving medical
	4817	+	19 assistance under Article V of the Illinois Public Aid Code who
	4818	+	20 resides in a licensed long-term care facility, as defined in
	4819	+	21 the Nursing Home Care Act, or in a licensed facility as defined
	4820	+	22 in the ID/DD Community Care Act, the MC/DD Act, or the
	4821	+	23 Specialized Mental Health Rehabilitation Act of 2013.
	4822	+	24 (31) Beginning on August 2, 2001 (the effective date of
	4823	+	25 Public Act 92-227), computers and communications equipment
	4824	+	26 utilized for any hospital purpose and equipment used in the
	4825	+
	4826	+
	4827	+
	4828	+
	4829	+
	4830	+	SB1963 Enrolled - 135 - LRB103 25648 HLH 51997 b
	4831	+
	4832	+
	4833	+	SB1963 Enrolled- 136 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 136 - LRB103 25648 HLH 51997 b
	4834	+	SB1963 Enrolled - 136 - LRB103 25648 HLH 51997 b
	4835	+	1 diagnosis, analysis, or treatment of hospital patients
	4836	+	2 purchased by a lessor who leases the equipment, under a lease
	4837	+	3 of one year or longer executed or in effect at the time the
	4838	+	4 lessor would otherwise be subject to the tax imposed by this
	4839	+	5 Act, to a hospital that has been issued an active tax exemption
	4840	+	6 identification number by the Department under Section 1g of
	4841	+	7 the Retailers' Occupation Tax Act. If the equipment is leased
	4842	+	8 in a manner that does not qualify for this exemption or is used
	4843	+	9 in any other nonexempt manner, the lessor shall be liable for
	4844	+	10 the tax imposed under this Act or the Service Use Tax Act, as
	4845	+	11 the case may be, based on the fair market value of the property
	4846	+	12 at the time the nonqualifying use occurs. No lessor shall
	4847	+	13 collect or attempt to collect an amount (however designated)
	4848	+	14 that purports to reimburse that lessor for the tax imposed by
	4849	+	15 this Act or the Service Use Tax Act, as the case may be, if the
	4850	+	16 tax has not been paid by the lessor. If a lessor improperly
	4851	+	17 collects any such amount from the lessee, the lessee shall
	4852	+	18 have a legal right to claim a refund of that amount from the
	4853	+	19 lessor. If, however, that amount is not refunded to the lessee
	4854	+	20 for any reason, the lessor is liable to pay that amount to the
	4855	+	21 Department. This paragraph is exempt from the provisions of
	4856	+	22 Section 3-90.
	4857	+	23 (32) Beginning on August 2, 2001 (the effective date of
	4858	+	24 Public Act 92-227), personal property purchased by a lessor
	4859	+	25 who leases the property, under a lease of one year or longer
	4860	+	26 executed or in effect at the time the lessor would otherwise be
	4861	+
	4862	+
	4863	+
	4864	+
	4865	+
	4866	+	SB1963 Enrolled - 136 - LRB103 25648 HLH 51997 b
	4867	+
	4868	+
	4869	+	SB1963 Enrolled- 137 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 137 - LRB103 25648 HLH 51997 b
	4870	+	SB1963 Enrolled - 137 - LRB103 25648 HLH 51997 b
	4871	+	1 subject to the tax imposed by this Act, to a governmental body
	4872	+	2 that has been issued an active sales tax exemption
	4873	+	3 identification number by the Department under Section 1g of
	4874	+	4 the Retailers' Occupation Tax Act. If the property is leased
	4875	+	5 in a manner that does not qualify for this exemption or used in
	4876	+	6 any other nonexempt manner, the lessor shall be liable for the
	4877	+	7 tax imposed under this Act or the Service Use Tax Act, as the
	4878	+	8 case may be, based on the fair market value of the property at
	4879	+	9 the time the nonqualifying use occurs. No lessor shall collect
	4880	+	10 or attempt to collect an amount (however designated) that
	4881	+	11 purports to reimburse that lessor for the tax imposed by this
	4882	+	12 Act or the Service Use Tax Act, as the case may be, if the tax
	4883	+	13 has not been paid by the lessor. If a lessor improperly
	4884	+	14 collects any such amount from the lessee, the lessee shall
	4885	+	15 have a legal right to claim a refund of that amount from the
	4886	+	16 lessor. If, however, that amount is not refunded to the lessee
	4887	+	17 for any reason, the lessor is liable to pay that amount to the
	4888	+	18 Department. This paragraph is exempt from the provisions of
	4889	+	19 Section 3-90.
	4890	+	20 (33) On and after July 1, 2003 and through June 30, 2004,
	4891	+	21 the use in this State of motor vehicles of the second division
	4892	+	22 with a gross vehicle weight in excess of 8,000 pounds and that
	4893	+	23 are subject to the commercial distribution fee imposed under
	4894	+	24 Section 3-815.1 of the Illinois Vehicle Code. Beginning on
	4895	+	25 July 1, 2004 and through June 30, 2005, the use in this State
	4896	+	26 of motor vehicles of the second division: (i) with a gross
	4897	+
	4898	+
	4899	+
	4900	+
	4901	+
	4902	+	SB1963 Enrolled - 137 - LRB103 25648 HLH 51997 b
	4903	+
	4904	+
	4905	+	SB1963 Enrolled- 138 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 138 - LRB103 25648 HLH 51997 b
	4906	+	SB1963 Enrolled - 138 - LRB103 25648 HLH 51997 b
	4907	+	1 vehicle weight rating in excess of 8,000 pounds; (ii) that are
	4908	+	2 subject to the commercial distribution fee imposed under
	4909	+	3 Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
	4910	+	4 are primarily used for commercial purposes. Through June 30,
	4911	+	5 2005, this exemption applies to repair and replacement parts
	4912	+	6 added after the initial purchase of such a motor vehicle if
	4913	+	7 that motor vehicle is used in a manner that would qualify for
	4914	+	8 the rolling stock exemption otherwise provided for in this
	4915	+	9 Act. For purposes of this paragraph, the term "used for
	4916	+	10 commercial purposes" means the transportation of persons or
	4917	+	11 property in furtherance of any commercial or industrial
	4918	+	12 enterprise, whether for-hire or not.
	4919	+	13 (34) Beginning January 1, 2008, tangible personal property
	4920	+	14 used in the construction or maintenance of a community water
	4921	+	15 supply, as defined under Section 3.145 of the Environmental
	4922	+	16 Protection Act, that is operated by a not-for-profit
	4923	+	17 corporation that holds a valid water supply permit issued
	4924	+	18 under Title IV of the Environmental Protection Act. This
	4925	+	19 paragraph is exempt from the provisions of Section 3-90.
	4926	+	20 (35) Beginning January 1, 2010 and continuing through
	4927	+	21 December 31, 2024, materials, parts, equipment, components,
	4928	+	22 and furnishings incorporated into or upon an aircraft as part
	4929	+	23 of the modification, refurbishment, completion, replacement,
	4930	+	24 repair, or maintenance of the aircraft. This exemption
	4931	+	25 includes consumable supplies used in the modification,
	4932	+	26 refurbishment, completion, replacement, repair, and
	4933	+
	4934	+
	4935	+
	4936	+
	4937	+
	4938	+	SB1963 Enrolled - 138 - LRB103 25648 HLH 51997 b
	4939	+
	4940	+
	4941	+	SB1963 Enrolled- 139 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 139 - LRB103 25648 HLH 51997 b
	4942	+	SB1963 Enrolled - 139 - LRB103 25648 HLH 51997 b
	4943	+	1 maintenance of aircraft, but excludes any materials, parts,
	4944	+	2 equipment, components, and consumable supplies used in the
	4945	+	3 modification, replacement, repair, and maintenance of aircraft
	4946	+	4 engines or power plants, whether such engines or power plants
	4947	+	5 are installed or uninstalled upon any such aircraft.
	4948	+	6 "Consumable supplies" include, but are not limited to,
	4949	+	7 adhesive, tape, sandpaper, general purpose lubricants,
	4950	+	8 cleaning solution, latex gloves, and protective films. This
	4951	+	9 exemption applies only to the use of qualifying tangible
	4952	+	10 personal property by persons who modify, refurbish, complete,
	4953	+	11 repair, replace, or maintain aircraft and who (i) hold an Air
	4954	+	12 Agency Certificate and are empowered to operate an approved
	4955	+	13 repair station by the Federal Aviation Administration, (ii)
	4956	+	14 have a Class IV Rating, and (iii) conduct operations in
	4957	+	15 accordance with Part 145 of the Federal Aviation Regulations.
	4958	+	16 The exemption does not include aircraft operated by a
	4959	+	17 commercial air carrier providing scheduled passenger air
	4960	+	18 service pursuant to authority issued under Part 121 or Part
	4961	+	19 129 of the Federal Aviation Regulations. The changes made to
	4962	+	20 this paragraph (35) by Public Act 98-534 are declarative of
	4963	+	21 existing law. It is the intent of the General Assembly that the
	4964	+	22 exemption under this paragraph (35) applies continuously from
	4965	+	23 January 1, 2010 through December 31, 2024; however, no claim
	4966	+	24 for credit or refund is allowed for taxes paid as a result of
	4967	+	25 the disallowance of this exemption on or after January 1, 2015
	4968	+	26 and prior to February 5, 2020 (the effective date of Public Act
	4969	+
	4970	+
	4971	+
	4972	+
	4973	+
	4974	+	SB1963 Enrolled - 139 - LRB103 25648 HLH 51997 b
	4975	+
	4976	+
	4977	+	SB1963 Enrolled- 140 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 140 - LRB103 25648 HLH 51997 b
	4978	+	SB1963 Enrolled - 140 - LRB103 25648 HLH 51997 b
	4979	+	1 101-629) this amendatory Act of the 101st General Assembly.
	4980	+	2 (36) Tangible personal property purchased by a
	4981	+	3 public-facilities corporation, as described in Section
	4982	+	4 11-65-10 of the Illinois Municipal Code, for purposes of
	4983	+	5 constructing or furnishing a municipal convention hall, but
	4984	+	6 only if the legal title to the municipal convention hall is
	4985	+	7 transferred to the municipality without any further
	4986	+	8 consideration by or on behalf of the municipality at the time
	4987	+	9 of the completion of the municipal convention hall or upon the
	4988	+	10 retirement or redemption of any bonds or other debt
	4989	+	11 instruments issued by the public-facilities corporation in
	4990	+	12 connection with the development of the municipal convention
	4991	+	13 hall. This exemption includes existing public-facilities
	4992	+	14 corporations as provided in Section 11-65-25 of the Illinois
	4993	+	15 Municipal Code. This paragraph is exempt from the provisions
	4994	+	16 of Section 3-90.
	4995	+	17 (37) Beginning January 1, 2017 and through December 31,
	4996	+	18 2026, menstrual pads, tampons, and menstrual cups.
	4997	+	19 (38) Merchandise that is subject to the Rental Purchase
	4998	+	20 Agreement Occupation and Use Tax. The purchaser must certify
	4999	+	21 that the item is purchased to be rented subject to a rental
	5000	+	22 purchase agreement, as defined in the Rental Purchase
	5001	+	23 Agreement Act, and provide proof of registration under the
	5002	+	24 Rental Purchase Agreement Occupation and Use Tax Act. This
	5003	+	25 paragraph is exempt from the provisions of Section 3-90.
	5004	+	26 (39) Tangible personal property purchased by a purchaser
	5005	+
	5006	+
	5007	+
	5008	+
	5009	+
	5010	+	SB1963 Enrolled - 140 - LRB103 25648 HLH 51997 b
	5011	+
	5012	+
	5013	+	SB1963 Enrolled- 141 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 141 - LRB103 25648 HLH 51997 b
	5014	+	SB1963 Enrolled - 141 - LRB103 25648 HLH 51997 b
	5015	+	1 who is exempt from the tax imposed by this Act by operation of
	5016	+	2 federal law. This paragraph is exempt from the provisions of
	5017	+	3 Section 3-90.
	5018	+	4 (40) Qualified tangible personal property used in the
	5019	+	5 construction or operation of a data center that has been
	5020	+	6 granted a certificate of exemption by the Department of
	5021	+	7 Commerce and Economic Opportunity, whether that tangible
	5022	+	8 personal property is purchased by the owner, operator, or
	5023	+	9 tenant of the data center or by a contractor or subcontractor
	5024	+	10 of the owner, operator, or tenant. Data centers that would
	5025	+	11 have qualified for a certificate of exemption prior to January
	5026	+	12 1, 2020 had Public Act 101-31 been in effect may apply for and
	5027	+	13 obtain an exemption for subsequent purchases of computer
	5028	+	14 equipment or enabling software purchased or leased to upgrade,
	5029	+	15 supplement, or replace computer equipment or enabling software
	5030	+	16 purchased or leased in the original investment that would have
	5031	+	17 qualified.
	5032	+	18 The Department of Commerce and Economic Opportunity shall
	5033	+	19 grant a certificate of exemption under this item (40) to
	5034	+	20 qualified data centers as defined by Section 605-1025 of the
	5035	+	21 Department of Commerce and Economic Opportunity Law of the
	5036	+	22 Civil Administrative Code of Illinois.
	5037	+	23 For the purposes of this item (40):
	5038	+	24 "Data center" means a building or a series of
	5039	+	25 buildings rehabilitated or constructed to house working
	5040	+	26 servers in one physical location or multiple sites within
	5041	+
	5042	+
	5043	+
	5044	+
	5045	+
	5046	+	SB1963 Enrolled - 141 - LRB103 25648 HLH 51997 b
	5047	+
	5048	+
	5049	+	SB1963 Enrolled- 142 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 142 - LRB103 25648 HLH 51997 b
	5050	+	SB1963 Enrolled - 142 - LRB103 25648 HLH 51997 b
	5051	+	1 the State of Illinois.
	5052	+	2 "Qualified tangible personal property" means:
	5053	+	3 electrical systems and equipment; climate control and
	5054	+	4 chilling equipment and systems; mechanical systems and
	5055	+	5 equipment; monitoring and secure systems; emergency
	5056	+	6 generators; hardware; computers; servers; data storage
	5057	+	7 devices; network connectivity equipment; racks; cabinets;
	5058	+	8 telecommunications cabling infrastructure; raised floor
	5059	+	9 systems; peripheral components or systems; software;
	5060	+	10 mechanical, electrical, or plumbing systems; battery
	5061	+	11 systems; cooling systems and towers; temperature control
	5062	+	12 systems; other cabling; and other data center
	5063	+	13 infrastructure equipment and systems necessary to operate
	5064	+	14 qualified tangible personal property, including fixtures;
	5065	+	15 and component parts of any of the foregoing, including
	5066	+	16 installation, maintenance, repair, refurbishment, and
	5067	+	17 replacement of qualified tangible personal property to
	5068	+	18 generate, transform, transmit, distribute, or manage
	5069	+	19 electricity necessary to operate qualified tangible
	5070	+	20 personal property; and all other tangible personal
	5071	+	21 property that is essential to the operations of a computer
	5072	+	22 data center. The term "qualified tangible personal
	5073	+	23 property" also includes building materials physically
	5074	+	24 incorporated in to the qualifying data center. To document
	5075	+	25 the exemption allowed under this Section, the retailer
	5076	+	26 must obtain from the purchaser a copy of the certificate
	5077	+
	5078	+
	5079	+
	5080	+
	5081	+
	5082	+	SB1963 Enrolled - 142 - LRB103 25648 HLH 51997 b
	5083	+
	5084	+
	5085	+	SB1963 Enrolled- 143 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 143 - LRB103 25648 HLH 51997 b
	5086	+	SB1963 Enrolled - 143 - LRB103 25648 HLH 51997 b
	5087	+	1 of eligibility issued by the Department of Commerce and
	5088	+	2 Economic Opportunity.
	5089	+	3 This item (40) is exempt from the provisions of Section
	5090	+	4 3-90.
	5091	+	5 (41) Beginning July 1, 2022, breast pumps, breast pump
	5092	+	6 collection and storage supplies, and breast pump kits. This
	5093	+	7 item (41) is exempt from the provisions of Section 3-90. As
	5094	+	8 used in this item (41):
	5095	+	9 "Breast pump" means an electrically controlled or
	5096	+	10 manually controlled pump device designed or marketed to be
	5097	+	11 used to express milk from a human breast during lactation,
	5098	+	12 including the pump device and any battery, AC adapter, or
	5099	+	13 other power supply unit that is used to power the pump
	5100	+	14 device and is packaged and sold with the pump device at the
	5101	+	15 time of sale.
	5102	+	16 "Breast pump collection and storage supplies" means
	5103	+	17 items of tangible personal property designed or marketed
	5104	+	18 to be used in conjunction with a breast pump to collect
	5105	+	19 milk expressed from a human breast and to store collected
	5106	+	20 milk until it is ready for consumption.
	5107	+	21 "Breast pump collection and storage supplies"
	5108	+	22 includes, but is not limited to: breast shields and breast
	5109	+	23 shield connectors; breast pump tubes and tubing adapters;
	5110	+	24 breast pump valves and membranes; backflow protectors and
	5111	+	25 backflow protector adaptors; bottles and bottle caps
	5112	+	26 specific to the operation of the breast pump; and breast
	5113	+
	5114	+
	5115	+
	5116	+
	5117	+
	5118	+	SB1963 Enrolled - 143 - LRB103 25648 HLH 51997 b
	5119	+
	5120	+
	5121	+	SB1963 Enrolled- 144 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 144 - LRB103 25648 HLH 51997 b
	5122	+	SB1963 Enrolled - 144 - LRB103 25648 HLH 51997 b
	5123	+	1 milk storage bags.
	5124	+	2 "Breast pump collection and storage supplies" does not
	5125	+	3 include: (1) bottles and bottle caps not specific to the
	5126	+	4 operation of the breast pump; (2) breast pump travel bags
	5127	+	5 and other similar carrying accessories, including ice
	5128	+	6 packs, labels, and other similar products; (3) breast pump
	5129	+	7 cleaning supplies; (4) nursing bras, bra pads, breast
	5130	+	8 shells, and other similar products; and (5) creams,
	5131	+	9 ointments, and other similar products that relieve
	5132	+	10 breastfeeding-related symptoms or conditions of the
	5133	+	11 breasts or nipples, unless sold as part of a breast pump
	5134	+	12 kit that is pre-packaged by the breast pump manufacturer
	5135	+	13 or distributor.
	5136	+	14 "Breast pump kit" means a kit that: (1) contains no
	5137	+	15 more than a breast pump, breast pump collection and
	5138	+	16 storage supplies, a rechargeable battery for operating the
	5139	+	17 breast pump, a breastmilk cooler, bottle stands, ice
	5140	+	18 packs, and a breast pump carrying case; and (2) is
	5141	+	19 pre-packaged as a breast pump kit by the breast pump
	5142	+	20 manufacturer or distributor.
	5143	+	21 (42) (41) Tangible personal property sold by or on behalf
	5144	+	22 of the State Treasurer pursuant to the Revised Uniform
	5145	+	23 Unclaimed Property Act. This item (42) (41) is exempt from the
	5146	+	24 provisions of Section 3-90.
	5147	+	25 (Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
	5148	+	26 101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
	5149	+
	5150	+
	5151	+
	5152	+
	5153	+
	5154	+	SB1963 Enrolled - 144 - LRB103 25648 HLH 51997 b
	5155	+
	5156	+
	5157	+	SB1963 Enrolled- 145 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 145 - LRB103 25648 HLH 51997 b
	5158	+	SB1963 Enrolled - 145 - LRB103 25648 HLH 51997 b
	5159	+	1 6-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
	5160	+	2 102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
	5161	+	3 eff. 5-27-22; revised 8-1-22.)
	5162	+	4 Section 15-10. The Service Use Tax Act is amended by
	5163	+	5 changing Section 3-5 as follows:
	5164	+	6 (35 ILCS 110/3-5)
	5165	+	7 Sec. 3-5. Exemptions. Use of the following tangible
	5166	+	8 personal property is exempt from the tax imposed by this Act:
	5167	+	9 (1) Personal property purchased from a corporation,
	5168	+	10 society, association, foundation, institution, or
	5169	+	11 organization, other than a limited liability company, that is
	5170	+	12 organized and operated as a not-for-profit service enterprise
	5171	+	13 for the benefit of persons 65 years of age or older if the
	5172	+	14 personal property was not purchased by the enterprise for the
	5173	+	15 purpose of resale by the enterprise.
	5174	+	16 (2) Personal property purchased by a non-profit Illinois
	5175	+	17 county fair association for use in conducting, operating, or
	5176	+	18 promoting the county fair.
	5177	+	19 (3) Personal property purchased by a not-for-profit arts
	5178	+	20 or cultural organization that establishes, by proof required
	5179	+	21 by the Department by rule, that it has received an exemption
	5180	+	22 under Section 501(c)(3) of the Internal Revenue Code and that
	5181	+	23 is organized and operated primarily for the presentation or
	5182	+	24 support of arts or cultural programming, activities, or
	5183	+
	5184	+
	5185	+
	5186	+
	5187	+
	5188	+	SB1963 Enrolled - 145 - LRB103 25648 HLH 51997 b
	5189	+
	5190	+
	5191	+	SB1963 Enrolled- 146 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 146 - LRB103 25648 HLH 51997 b
	5192	+	SB1963 Enrolled - 146 - LRB103 25648 HLH 51997 b
	5193	+	1 services. These organizations include, but are not limited to,
	5194	+	2 music and dramatic arts organizations such as symphony
	5195	+	3 orchestras and theatrical groups, arts and cultural service
	5196	+	4 organizations, local arts councils, visual arts organizations,
	5197	+	5 and media arts organizations. On and after July 1, 2001 (the
	5198	+	6 effective date of Public Act 92-35), however, an entity
	5199	+	7 otherwise eligible for this exemption shall not make tax-free
	5200	+	8 purchases unless it has an active identification number issued
	5201	+	9 by the Department.
	5202	+	10 (4) Legal tender, currency, medallions, or gold or silver
	5203	+	11 coinage issued by the State of Illinois, the government of the
	5204	+	12 United States of America, or the government of any foreign
	5205	+	13 country, and bullion.
	5206	+	14 (5) Until July 1, 2003 and beginning again on September 1,
	5207	+	15 2004 through August 30, 2014, graphic arts machinery and
	5208	+	16 equipment, including repair and replacement parts, both new
	5209	+	17 and used, and including that manufactured on special order or
	5210	+	18 purchased for lease, certified by the purchaser to be used
	5211	+	19 primarily for graphic arts production. Equipment includes
	5212	+	20 chemicals or chemicals acting as catalysts but only if the
	5213	+	21 chemicals or chemicals acting as catalysts effect a direct and
	5214	+	22 immediate change upon a graphic arts product. Beginning on
	5215	+	23 July 1, 2017, graphic arts machinery and equipment is included
	5216	+	24 in the manufacturing and assembling machinery and equipment
	5217	+	25 exemption under Section 2 of this Act.
	5218	+	26 (6) Personal property purchased from a teacher-sponsored
	5219	+
	5220	+
	5221	+
	5222	+
	5223	+
	5224	+	SB1963 Enrolled - 146 - LRB103 25648 HLH 51997 b
	5225	+
	5226	+
	5227	+	SB1963 Enrolled- 147 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 147 - LRB103 25648 HLH 51997 b
	5228	+	SB1963 Enrolled - 147 - LRB103 25648 HLH 51997 b
	5229	+	1 student organization affiliated with an elementary or
	5230	+	2 secondary school located in Illinois.
	5231	+	3 (7) Farm machinery and equipment, both new and used,
	5232	+	4 including that manufactured on special order, certified by the
	5233	+	5 purchaser to be used primarily for production agriculture or
	5234	+	6 State or federal agricultural programs, including individual
	5235	+	7 replacement parts for the machinery and equipment, including
	5236	+	8 machinery and equipment purchased for lease, and including
	5237	+	9 implements of husbandry defined in Section 1-130 of the
	5238	+	10 Illinois Vehicle Code, farm machinery and agricultural
	5239	+	11 chemical and fertilizer spreaders, and nurse wagons required
	5240	+	12 to be registered under Section 3-809 of the Illinois Vehicle
	5241	+	13 Code, but excluding other motor vehicles required to be
	5242	+	14 registered under the Illinois Vehicle Code. Horticultural
	5243	+	15 polyhouses or hoop houses used for propagating, growing, or
	5244	+	16 overwintering plants shall be considered farm machinery and
	5245	+	17 equipment under this item (7). Agricultural chemical tender
	5246	+	18 tanks and dry boxes shall include units sold separately from a
	5247	+	19 motor vehicle required to be licensed and units sold mounted
	5248	+	20 on a motor vehicle required to be licensed if the selling price
	5249	+	21 of the tender is separately stated.
	5250	+	22 Farm machinery and equipment shall include precision
	5251	+	23 farming equipment that is installed or purchased to be
	5252	+	24 installed on farm machinery and equipment including, but not
	5253	+	25 limited to, tractors, harvesters, sprayers, planters, seeders,
	5254	+	26 or spreaders. Precision farming equipment includes, but is not
	5255	+
	5256	+
	5257	+
	5258	+
	5259	+
	5260	+	SB1963 Enrolled - 147 - LRB103 25648 HLH 51997 b
	5261	+
	5262	+
	5263	+	SB1963 Enrolled- 148 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 148 - LRB103 25648 HLH 51997 b
	5264	+	SB1963 Enrolled - 148 - LRB103 25648 HLH 51997 b
	5265	+	1 limited to, soil testing sensors, computers, monitors,
	5266	+	2 software, global positioning and mapping systems, and other
	5267	+	3 such equipment.
	5268	+	4 Farm machinery and equipment also includes computers,
	5269	+	5 sensors, software, and related equipment used primarily in the
	5270	+	6 computer-assisted operation of production agriculture
	5271	+	7 facilities, equipment, and activities such as, but not limited
	5272	+	8 to, the collection, monitoring, and correlation of animal and
	5273	+	9 crop data for the purpose of formulating animal diets and
	5274	+	10 agricultural chemicals.
	5275	+	11 Beginning on January 1, 2024, farm machinery and equipment
	5276	+	12 also includes electrical power generation equipment used
	5277	+	13 primarily for production agriculture.
	5278	+	14 This item (7) is exempt from the provisions of Section
	5279	+	15 3-75.
	5280	+	16 (8) Until June 30, 2013, fuel and petroleum products sold
	5281	+	17 to or used by an air common carrier, certified by the carrier
	5282	+	18 to be used for consumption, shipment, or storage in the
	5283	+	19 conduct of its business as an air common carrier, for a flight
	5284	+	20 destined for or returning from a location or locations outside
	5285	+	21 the United States without regard to previous or subsequent
	5286	+	22 domestic stopovers.
	5287	+	23 Beginning July 1, 2013, fuel and petroleum products sold
	5288	+	24 to or used by an air carrier, certified by the carrier to be
	5289	+	25 used for consumption, shipment, or storage in the conduct of
	5290	+	26 its business as an air common carrier, for a flight that (i) is
	5291	+
	5292	+
	5293	+
	5294	+
	5295	+
	5296	+	SB1963 Enrolled - 148 - LRB103 25648 HLH 51997 b
	5297	+
	5298	+
	5299	+	SB1963 Enrolled- 149 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 149 - LRB103 25648 HLH 51997 b
	5300	+	SB1963 Enrolled - 149 - LRB103 25648 HLH 51997 b
	5301	+	1 engaged in foreign trade or is engaged in trade between the
	5302	+	2 United States and any of its possessions and (ii) transports
	5303	+	3 at least one individual or package for hire from the city of
	5304	+	4 origination to the city of final destination on the same
	5305	+	5 aircraft, without regard to a change in the flight number of
	5306	+	6 that aircraft.
	5307	+	7 (9) Proceeds of mandatory service charges separately
	5308	+	8 stated on customers' bills for the purchase and consumption of
	5309	+	9 food and beverages acquired as an incident to the purchase of a
	5310	+	10 service from a serviceman, to the extent that the proceeds of
	5311	+	11 the service charge are in fact turned over as tips or as a
	5312	+	12 substitute for tips to the employees who participate directly
	5313	+	13 in preparing, serving, hosting or cleaning up the food or
	5314	+	14 beverage function with respect to which the service charge is
	5315	+	15 imposed.
	5316	+	16 (10) Until July 1, 2003, oil field exploration, drilling,
	5317	+	17 and production equipment, including (i) rigs and parts of
	5318	+	18 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
	5319	+	19 pipe and tubular goods, including casing and drill strings,
	5320	+	20 (iii) pumps and pump-jack units, (iv) storage tanks and flow
	5321	+	21 lines, (v) any individual replacement part for oil field
	5322	+	22 exploration, drilling, and production equipment, and (vi)
	5323	+	23 machinery and equipment purchased for lease; but excluding
	5324	+	24 motor vehicles required to be registered under the Illinois
	5325	+	25 Vehicle Code.
	5326	+	26 (11) Proceeds from the sale of photoprocessing machinery
	5327	+
	5328	+
	5329	+
	5330	+
	5331	+
	5332	+	SB1963 Enrolled - 149 - LRB103 25648 HLH 51997 b
	5333	+
	5334	+
	5335	+	SB1963 Enrolled- 150 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 150 - LRB103 25648 HLH 51997 b
	5336	+	SB1963 Enrolled - 150 - LRB103 25648 HLH 51997 b
	5337	+	1 and equipment, including repair and replacement parts, both
	5338	+	2 new and used, including that manufactured on special order,
	5339	+	3 certified by the purchaser to be used primarily for
	5340	+	4 photoprocessing, and including photoprocessing machinery and
	5341	+	5 equipment purchased for lease.
	5342	+	6 (12) Until July 1, 2028, coal and aggregate exploration,
	5343	+	7 mining, off-highway hauling, processing, maintenance, and
	5344	+	8 reclamation equipment, including replacement parts and
	5345	+	9 equipment, and including equipment purchased for lease, but
	5346	+	10 excluding motor vehicles required to be registered under the
	5347	+	11 Illinois Vehicle Code. The changes made to this Section by
	5348	+	12 Public Act 97-767 apply on and after July 1, 2003, but no claim
	5349	+	13 for credit or refund is allowed on or after August 16, 2013
	5350	+	14 (the effective date of Public Act 98-456) for such taxes paid
	5351	+	15 during the period beginning July 1, 2003 and ending on August
	5352	+	16 16, 2013 (the effective date of Public Act 98-456).
	5353	+	17 (13) Semen used for artificial insemination of livestock
	5354	+	18 for direct agricultural production.
	5355	+	19 (14) Horses, or interests in horses, registered with and
	5356	+	20 meeting the requirements of any of the Arabian Horse Club
	5357	+	21 Registry of America, Appaloosa Horse Club, American Quarter
	5358	+	22 Horse Association, United States Trotting Association, or
	5359	+	23 Jockey Club, as appropriate, used for purposes of breeding or
	5360	+	24 racing for prizes. This item (14) is exempt from the
	5361	+	25 provisions of Section 3-75, and the exemption provided for
	5362	+	26 under this item (14) applies for all periods beginning May 30,
	5363	+
	5364	+
	5365	+
	5366	+
	5367	+
	5368	+	SB1963 Enrolled - 150 - LRB103 25648 HLH 51997 b
	5369	+
	5370	+
	5371	+	SB1963 Enrolled- 151 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 151 - LRB103 25648 HLH 51997 b
	5372	+	SB1963 Enrolled - 151 - LRB103 25648 HLH 51997 b
	5373	+	1 1995, but no claim for credit or refund is allowed on or after
	5374	+	2 January 1, 2008 (the effective date of Public Act 95-88) for
	5375	+	3 such taxes paid during the period beginning May 30, 2000 and
	5376	+	4 ending on January 1, 2008 (the effective date of Public Act
	5377	+	5 95-88).
	5378	+	6 (15) Computers and communications equipment utilized for
	5379	+	7 any hospital purpose and equipment used in the diagnosis,
	5380	+	8 analysis, or treatment of hospital patients purchased by a
	5381	+	9 lessor who leases the equipment, under a lease of one year or
	5382	+	10 longer executed or in effect at the time the lessor would
	5383	+	11 otherwise be subject to the tax imposed by this Act, to a
	5384	+	12 hospital that has been issued an active tax exemption
	5385	+	13 identification number by the Department under Section 1g of
	5386	+	14 the Retailers' Occupation Tax Act. If the equipment is leased
	5387	+	15 in a manner that does not qualify for this exemption or is used
	5388	+	16 in any other non-exempt manner, the lessor shall be liable for
	5389	+	17 the tax imposed under this Act or the Use Tax Act, as the case
	5390	+	18 may be, based on the fair market value of the property at the
	5391	+	19 time the non-qualifying use occurs. No lessor shall collect or
	5392	+	20 attempt to collect an amount (however designated) that
	5393	+	21 purports to reimburse that lessor for the tax imposed by this
	5394	+	22 Act or the Use Tax Act, as the case may be, if the tax has not
	5395	+	23 been paid by the lessor. If a lessor improperly collects any
	5396	+	24 such amount from the lessee, the lessee shall have a legal
	5397	+	25 right to claim a refund of that amount from the lessor. If,
	5398	+	26 however, that amount is not refunded to the lessee for any
	5399	+
	5400	+
	5401	+
	5402	+
	5403	+
	5404	+	SB1963 Enrolled - 151 - LRB103 25648 HLH 51997 b
	5405	+
	5406	+
	5407	+	SB1963 Enrolled- 152 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 152 - LRB103 25648 HLH 51997 b
	5408	+	SB1963 Enrolled - 152 - LRB103 25648 HLH 51997 b
	5409	+	1 reason, the lessor is liable to pay that amount to the
	5410	+	2 Department.
	5411	+	3 (16) Personal property purchased by a lessor who leases
	5412	+	4 the property, under a lease of one year or longer executed or
	5413	+	5 in effect at the time the lessor would otherwise be subject to
	5414	+	6 the tax imposed by this Act, to a governmental body that has
	5415	+	7 been issued an active tax exemption identification number by
	5416	+	8 the Department under Section 1g of the Retailers' Occupation
	5417	+	9 Tax Act. If the property is leased in a manner that does not
	5418	+	10 qualify for this exemption or is used in any other non-exempt
	5419	+	11 manner, the lessor shall be liable for the tax imposed under
	5420	+	12 this Act or the Use Tax Act, as the case may be, based on the
	5421	+	13 fair market value of the property at the time the
	5422	+	14 non-qualifying use occurs. No lessor shall collect or attempt
	5423	+	15 to collect an amount (however designated) that purports to
	5424	+	16 reimburse that lessor for the tax imposed by this Act or the
	5425	+	17 Use Tax Act, as the case may be, if the tax has not been paid
	5426	+	18 by the lessor. If a lessor improperly collects any such amount
	5427	+	19 from the lessee, the lessee shall have a legal right to claim a
	5428	+	20 refund of that amount from the lessor. If, however, that
	5429	+	21 amount is not refunded to the lessee for any reason, the lessor
	5430	+	22 is liable to pay that amount to the Department.
	5431	+	23 (17) Beginning with taxable years ending on or after
	5432	+	24 December 31, 1995 and ending with taxable years ending on or
	5433	+	25 before December 31, 2004, personal property that is donated
	5434	+	26 for disaster relief to be used in a State or federally declared
	5435	+
	5436	+
	5437	+
	5438	+
	5439	+
	5440	+	SB1963 Enrolled - 152 - LRB103 25648 HLH 51997 b
	5441	+
	5442	+
	5443	+	SB1963 Enrolled- 153 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 153 - LRB103 25648 HLH 51997 b
	5444	+	SB1963 Enrolled - 153 - LRB103 25648 HLH 51997 b
	5445	+	1 disaster area in Illinois or bordering Illinois by a
	5446	+	2 manufacturer or retailer that is registered in this State to a
	5447	+	3 corporation, society, association, foundation, or institution
	5448	+	4 that has been issued a sales tax exemption identification
	5449	+	5 number by the Department that assists victims of the disaster
	5450	+	6 who reside within the declared disaster area.
	5451	+	7 (18) Beginning with taxable years ending on or after
	5452	+	8 December 31, 1995 and ending with taxable years ending on or
	5453	+	9 before December 31, 2004, personal property that is used in
	5454	+	10 the performance of infrastructure repairs in this State,
	5455	+	11 including but not limited to municipal roads and streets,
	5456	+	12 access roads, bridges, sidewalks, waste disposal systems,
	5457	+	13 water and sewer line extensions, water distribution and
	5458	+	14 purification facilities, storm water drainage and retention
	5459	+	15 facilities, and sewage treatment facilities, resulting from a
	5460	+	16 State or federally declared disaster in Illinois or bordering
	5461	+	17 Illinois when such repairs are initiated on facilities located
	5462	+	18 in the declared disaster area within 6 months after the
	5463	+	19 disaster.
	5464	+	20 (19) Beginning July 1, 1999, game or game birds purchased
	5465	+	21 at a "game breeding and hunting preserve area" as that term is
	5466	+	22 used in the Wildlife Code. This paragraph is exempt from the
	5467	+	23 provisions of Section 3-75.
	5468	+	24 (20) A motor vehicle, as that term is defined in Section
	5469	+	25 1-146 of the Illinois Vehicle Code, that is donated to a
	5470	+	26 corporation, limited liability company, society, association,
	5471	+
	5472	+
	5473	+
	5474	+
	5475	+
	5476	+	SB1963 Enrolled - 153 - LRB103 25648 HLH 51997 b
	5477	+
	5478	+
	5479	+	SB1963 Enrolled- 154 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 154 - LRB103 25648 HLH 51997 b
	5480	+	SB1963 Enrolled - 154 - LRB103 25648 HLH 51997 b
	5481	+	1 foundation, or institution that is determined by the
	5482	+	2 Department to be organized and operated exclusively for
	5483	+	3 educational purposes. For purposes of this exemption, "a
	5484	+	4 corporation, limited liability company, society, association,
	5485	+	5 foundation, or institution organized and operated exclusively
	5486	+	6 for educational purposes" means all tax-supported public
	5487	+	7 schools, private schools that offer systematic instruction in
	5488	+	8 useful branches of learning by methods common to public
	5489	+	9 schools and that compare favorably in their scope and
	5490	+	10 intensity with the course of study presented in tax-supported
	5491	+	11 schools, and vocational or technical schools or institutes
	5492	+	12 organized and operated exclusively to provide a course of
	5493	+	13 study of not less than 6 weeks duration and designed to prepare
	5494	+	14 individuals to follow a trade or to pursue a manual,
	5495	+	15 technical, mechanical, industrial, business, or commercial
	5496	+	16 occupation.
	5497	+	17 (21) Beginning January 1, 2000, personal property,
	5498	+	18 including food, purchased through fundraising events for the
	5499	+	19 benefit of a public or private elementary or secondary school,
	5500	+	20 a group of those schools, or one or more school districts if
	5501	+	21 the events are sponsored by an entity recognized by the school
	5502	+	22 district that consists primarily of volunteers and includes
	5503	+	23 parents and teachers of the school children. This paragraph
	5504	+	24 does not apply to fundraising events (i) for the benefit of
	5505	+	25 private home instruction or (ii) for which the fundraising
	5506	+	26 entity purchases the personal property sold at the events from
	5507	+
	5508	+
	5509	+
	5510	+
	5511	+
	5512	+	SB1963 Enrolled - 154 - LRB103 25648 HLH 51997 b
	5513	+
	5514	+
	5515	+	SB1963 Enrolled- 155 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 155 - LRB103 25648 HLH 51997 b
	5516	+	SB1963 Enrolled - 155 - LRB103 25648 HLH 51997 b
	5517	+	1 another individual or entity that sold the property for the
	5518	+	2 purpose of resale by the fundraising entity and that profits
	5519	+	3 from the sale to the fundraising entity. This paragraph is
	5520	+	4 exempt from the provisions of Section 3-75.
	5521	+	5 (22) Beginning January 1, 2000 and through December 31,
	5522	+	6 2001, new or used automatic vending machines that prepare and
	5523	+	7 serve hot food and beverages, including coffee, soup, and
	5524	+	8 other items, and replacement parts for these machines.
	5525	+	9 Beginning January 1, 2002 and through June 30, 2003, machines
	5526	+	10 and parts for machines used in commercial, coin-operated
	5527	+	11 amusement and vending business if a use or occupation tax is
	5528	+	12 paid on the gross receipts derived from the use of the
	5529	+	13 commercial, coin-operated amusement and vending machines. This
	5530	+	14 paragraph is exempt from the provisions of Section 3-75.
	5531	+	15 (23) Beginning August 23, 2001 and through June 30, 2016,
	5532	+	16 food for human consumption that is to be consumed off the
	5533	+	17 premises where it is sold (other than alcoholic beverages,
	5534	+	18 soft drinks, and food that has been prepared for immediate
	5535	+	19 consumption) and prescription and nonprescription medicines,
	5536	+	20 drugs, medical appliances, and insulin, urine testing
	5537	+	21 materials, syringes, and needles used by diabetics, for human
	5538	+	22 use, when purchased for use by a person receiving medical
	5539	+	23 assistance under Article V of the Illinois Public Aid Code who
	5540	+	24 resides in a licensed long-term care facility, as defined in
	5541	+	25 the Nursing Home Care Act, or in a licensed facility as defined
	5542	+	26 in the ID/DD Community Care Act, the MC/DD Act, or the
	5543	+
	5544	+
	5545	+
	5546	+
	5547	+
	5548	+	SB1963 Enrolled - 155 - LRB103 25648 HLH 51997 b
	5549	+
	5550	+
	5551	+	SB1963 Enrolled- 156 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 156 - LRB103 25648 HLH 51997 b
	5552	+	SB1963 Enrolled - 156 - LRB103 25648 HLH 51997 b
	5553	+	1 Specialized Mental Health Rehabilitation Act of 2013.
	5554	+	2 (24) Beginning on August 2, 2001 (the effective date of
	5555	+	3 Public Act 92-227), computers and communications equipment
	5556	+	4 utilized for any hospital purpose and equipment used in the
	5557	+	5 diagnosis, analysis, or treatment of hospital patients
	5558	+	6 purchased by a lessor who leases the equipment, under a lease
	5559	+	7 of one year or longer executed or in effect at the time the
	5560	+	8 lessor would otherwise be subject to the tax imposed by this
	5561	+	9 Act, to a hospital that has been issued an active tax exemption
	5562	+	10 identification number by the Department under Section 1g of
	5563	+	11 the Retailers' Occupation Tax Act. If the equipment is leased
	5564	+	12 in a manner that does not qualify for this exemption or is used
	5565	+	13 in any other nonexempt manner, the lessor shall be liable for
	5566	+	14 the tax imposed under this Act or the Use Tax Act, as the case
	5567	+	15 may be, based on the fair market value of the property at the
	5568	+	16 time the nonqualifying use occurs. No lessor shall collect or
	5569	+	17 attempt to collect an amount (however designated) that
	5570	+	18 purports to reimburse that lessor for the tax imposed by this
	5571	+	19 Act or the Use Tax Act, as the case may be, if the tax has not
	5572	+	20 been paid by the lessor. If a lessor improperly collects any
	5573	+	21 such amount from the lessee, the lessee shall have a legal
	5574	+	22 right to claim a refund of that amount from the lessor. If,
	5575	+	23 however, that amount is not refunded to the lessee for any
	5576	+	24 reason, the lessor is liable to pay that amount to the
	5577	+	25 Department. This paragraph is exempt from the provisions of
	5578	+	26 Section 3-75.
	5579	+
	5580	+
	5581	+
	5582	+
	5583	+
	5584	+	SB1963 Enrolled - 156 - LRB103 25648 HLH 51997 b
	5585	+
	5586	+
	5587	+	SB1963 Enrolled- 157 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 157 - LRB103 25648 HLH 51997 b
	5588	+	SB1963 Enrolled - 157 - LRB103 25648 HLH 51997 b
	5589	+	1 (25) Beginning on August 2, 2001 (the effective date of
	5590	+	2 Public Act 92-227), personal property purchased by a lessor
	5591	+	3 who leases the property, under a lease of one year or longer
	5592	+	4 executed or in effect at the time the lessor would otherwise be
	5593	+	5 subject to the tax imposed by this Act, to a governmental body
	5594	+	6 that has been issued an active tax exemption identification
	5595	+	7 number by the Department under Section 1g of the Retailers'
	5596	+	8 Occupation Tax Act. If the property is leased in a manner that
	5597	+	9 does not qualify for this exemption or is used in any other
	5598	+	10 nonexempt manner, the lessor shall be liable for the tax
	5599	+	11 imposed under this Act or the Use Tax Act, as the case may be,
	5600	+	12 based on the fair market value of the property at the time the
	5601	+	13 nonqualifying use occurs. No lessor shall collect or attempt
	5602	+	14 to collect an amount (however designated) that purports to
	5603	+	15 reimburse that lessor for the tax imposed by this Act or the
	5604	+	16 Use Tax Act, as the case may be, if the tax has not been paid
	5605	+	17 by the lessor. If a lessor improperly collects any such amount
	5606	+	18 from the lessee, the lessee shall have a legal right to claim a
	5607	+	19 refund of that amount from the lessor. If, however, that
	5608	+	20 amount is not refunded to the lessee for any reason, the lessor
	5609	+	21 is liable to pay that amount to the Department. This paragraph
	5610	+	22 is exempt from the provisions of Section 3-75.
	5611	+	23 (26) Beginning January 1, 2008, tangible personal property
	5612	+	24 used in the construction or maintenance of a community water
	5613	+	25 supply, as defined under Section 3.145 of the Environmental
	5614	+	26 Protection Act, that is operated by a not-for-profit
	5615	+
	5616	+
	5617	+
	5618	+
	5619	+
	5620	+	SB1963 Enrolled - 157 - LRB103 25648 HLH 51997 b
	5621	+
	5622	+
	5623	+	SB1963 Enrolled- 158 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 158 - LRB103 25648 HLH 51997 b
	5624	+	SB1963 Enrolled - 158 - LRB103 25648 HLH 51997 b
	5625	+	1 corporation that holds a valid water supply permit issued
	5626	+	2 under Title IV of the Environmental Protection Act. This
	5627	+	3 paragraph is exempt from the provisions of Section 3-75.
	5628	+	4 (27) Beginning January 1, 2010 and continuing through
	5629	+	5 December 31, 2024, materials, parts, equipment, components,
	5630	+	6 and furnishings incorporated into or upon an aircraft as part
	5631	+	7 of the modification, refurbishment, completion, replacement,
	5632	+	8 repair, or maintenance of the aircraft. This exemption
	5633	+	9 includes consumable supplies used in the modification,
	5634	+	10 refurbishment, completion, replacement, repair, and
	5635	+	11 maintenance of aircraft, but excludes any materials, parts,
	5636	+	12 equipment, components, and consumable supplies used in the
	5637	+	13 modification, replacement, repair, and maintenance of aircraft
	5638	+	14 engines or power plants, whether such engines or power plants
	5639	+	15 are installed or uninstalled upon any such aircraft.
	5640	+	16 "Consumable supplies" include, but are not limited to,
	5641	+	17 adhesive, tape, sandpaper, general purpose lubricants,
	5642	+	18 cleaning solution, latex gloves, and protective films. This
	5643	+	19 exemption applies only to the use of qualifying tangible
	5644	+	20 personal property transferred incident to the modification,
	5645	+	21 refurbishment, completion, replacement, repair, or maintenance
	5646	+	22 of aircraft by persons who (i) hold an Air Agency Certificate
	5647	+	23 and are empowered to operate an approved repair station by the
	5648	+	24 Federal Aviation Administration, (ii) have a Class IV Rating,
	5649	+	25 and (iii) conduct operations in accordance with Part 145 of
	5650	+	26 the Federal Aviation Regulations. The exemption does not
	5651	+
	5652	+
	5653	+
	5654	+
	5655	+
	5656	+	SB1963 Enrolled - 158 - LRB103 25648 HLH 51997 b
	5657	+
	5658	+
	5659	+	SB1963 Enrolled- 159 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 159 - LRB103 25648 HLH 51997 b
	5660	+	SB1963 Enrolled - 159 - LRB103 25648 HLH 51997 b
	5661	+	1 include aircraft operated by a commercial air carrier
	5662	+	2 providing scheduled passenger air service pursuant to
	5663	+	3 authority issued under Part 121 or Part 129 of the Federal
	5664	+	4 Aviation Regulations. The changes made to this paragraph (27)
	5665	+	5 by Public Act 98-534 are declarative of existing law. It is the
	5666	+	6 intent of the General Assembly that the exemption under this
	5667	+	7 paragraph (27) applies continuously from January 1, 2010
	5668	+	8 through December 31, 2024; however, no claim for credit or
	5669	+	9 refund is allowed for taxes paid as a result of the
	5670	+	10 disallowance of this exemption on or after January 1, 2015 and
	5671	+	11 prior to February 5, 2020 (the effective date of Public Act
	5672	+	12 101-629) this amendatory Act of the 101st General Assembly.
	5673	+	13 (28) Tangible personal property purchased by a
	5674	+	14 public-facilities corporation, as described in Section
	5675	+	15 11-65-10 of the Illinois Municipal Code, for purposes of
	5676	+	16 constructing or furnishing a municipal convention hall, but
	5677	+	17 only if the legal title to the municipal convention hall is
	5678	+	18 transferred to the municipality without any further
	5679	+	19 consideration by or on behalf of the municipality at the time
	5680	+	20 of the completion of the municipal convention hall or upon the
	5681	+	21 retirement or redemption of any bonds or other debt
	5682	+	22 instruments issued by the public-facilities corporation in
	5683	+	23 connection with the development of the municipal convention
	5684	+	24 hall. This exemption includes existing public-facilities
	5685	+	25 corporations as provided in Section 11-65-25 of the Illinois
	5686	+	26 Municipal Code. This paragraph is exempt from the provisions
	5687	+
	5688	+
	5689	+
	5690	+
	5691	+
	5692	+	SB1963 Enrolled - 159 - LRB103 25648 HLH 51997 b
	5693	+
	5694	+
	5695	+	SB1963 Enrolled- 160 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 160 - LRB103 25648 HLH 51997 b
	5696	+	SB1963 Enrolled - 160 - LRB103 25648 HLH 51997 b
	5697	+	1 of Section 3-75.
	5698	+	2 (29) Beginning January 1, 2017 and through December 31,
	5699	+	3 2026, menstrual pads, tampons, and menstrual cups.
	5700	+	4 (30) Tangible personal property transferred to a purchaser
	5701	+	5 who is exempt from the tax imposed by this Act by operation of
	5702	+	6 federal law. This paragraph is exempt from the provisions of
	5703	+	7 Section 3-75.
	5704	+	8 (31) Qualified tangible personal property used in the
	5705	+	9 construction or operation of a data center that has been
	5706	+	10 granted a certificate of exemption by the Department of
	5707	+	11 Commerce and Economic Opportunity, whether that tangible
	5708	+	12 personal property is purchased by the owner, operator, or
	5709	+	13 tenant of the data center or by a contractor or subcontractor
	5710	+	14 of the owner, operator, or tenant. Data centers that would
	5711	+	15 have qualified for a certificate of exemption prior to January
	5712	+	16 1, 2020 had Public Act 101-31 this amendatory Act of the 101st
	5713	+	17 General Assembly been in effect, may apply for and obtain an
	5714	+	18 exemption for subsequent purchases of computer equipment or
	5715	+	19 enabling software purchased or leased to upgrade, supplement,
	5716	+	20 or replace computer equipment or enabling software purchased
	5717	+	21 or leased in the original investment that would have
	5718	+	22 qualified.
	5719	+	23 The Department of Commerce and Economic Opportunity shall
	5720	+	24 grant a certificate of exemption under this item (31) to
	5721	+	25 qualified data centers as defined by Section 605-1025 of the
	5722	+	26 Department of Commerce and Economic Opportunity Law of the
	5723	+
	5724	+
	5725	+
	5726	+
	5727	+
	5728	+	SB1963 Enrolled - 160 - LRB103 25648 HLH 51997 b
	5729	+
	5730	+
	5731	+	SB1963 Enrolled- 161 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 161 - LRB103 25648 HLH 51997 b
	5732	+	SB1963 Enrolled - 161 - LRB103 25648 HLH 51997 b
	5733	+	1 Civil Administrative Code of Illinois.
	5734	+	2 For the purposes of this item (31):
	5735	+	3 "Data center" means a building or a series of
	5736	+	4 buildings rehabilitated or constructed to house working
	5737	+	5 servers in one physical location or multiple sites within
	5738	+	6 the State of Illinois.
	5739	+	7 "Qualified tangible personal property" means:
	5740	+	8 electrical systems and equipment; climate control and
	5741	+	9 chilling equipment and systems; mechanical systems and
	5742	+	10 equipment; monitoring and secure systems; emergency
	5743	+	11 generators; hardware; computers; servers; data storage
	5744	+	12 devices; network connectivity equipment; racks; cabinets;
	5745	+	13 telecommunications cabling infrastructure; raised floor
	5746	+	14 systems; peripheral components or systems; software;
	5747	+	15 mechanical, electrical, or plumbing systems; battery
	5748	+	16 systems; cooling systems and towers; temperature control
	5749	+	17 systems; other cabling; and other data center
	5750	+	18 infrastructure equipment and systems necessary to operate
	5751	+	19 qualified tangible personal property, including fixtures;
	5752	+	20 and component parts of any of the foregoing, including
	5753	+	21 installation, maintenance, repair, refurbishment, and
	5754	+	22 replacement of qualified tangible personal property to
	5755	+	23 generate, transform, transmit, distribute, or manage
	5756	+	24 electricity necessary to operate qualified tangible
	5757	+	25 personal property; and all other tangible personal
	5758	+	26 property that is essential to the operations of a computer
	5759	+
	5760	+
	5761	+
	5762	+
	5763	+
	5764	+	SB1963 Enrolled - 161 - LRB103 25648 HLH 51997 b
	5765	+
	5766	+
	5767	+	SB1963 Enrolled- 162 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 162 - LRB103 25648 HLH 51997 b
	5768	+	SB1963 Enrolled - 162 - LRB103 25648 HLH 51997 b
	5769	+	1 data center. The term "qualified tangible personal
	5770	+	2 property" also includes building materials physically
	5771	+	3 incorporated in to the qualifying data center. To document
	5772	+	4 the exemption allowed under this Section, the retailer
	5773	+	5 must obtain from the purchaser a copy of the certificate
	5774	+	6 of eligibility issued by the Department of Commerce and
	5775	+	7 Economic Opportunity.
	5776	+	8 This item (31) is exempt from the provisions of Section
	5777	+	9 3-75.
	5778	+	10 (32) Beginning July 1, 2022, breast pumps, breast pump
	5779	+	11 collection and storage supplies, and breast pump kits. This
	5780	+	12 item (32) is exempt from the provisions of Section 3-75. As
	5781	+	13 used in this item (32):
	5782	+	14 "Breast pump" means an electrically controlled or
	5783	+	15 manually controlled pump device designed or marketed to be
	5784	+	16 used to express milk from a human breast during lactation,
	5785	+	17 including the pump device and any battery, AC adapter, or
	5786	+	18 other power supply unit that is used to power the pump
	5787	+	19 device and is packaged and sold with the pump device at the
	5788	+	20 time of sale.
	5789	+	21 "Breast pump collection and storage supplies" means
	5790	+	22 items of tangible personal property designed or marketed
	5791	+	23 to be used in conjunction with a breast pump to collect
	5792	+	24 milk expressed from a human breast and to store collected
	5793	+	25 milk until it is ready for consumption.
	5794	+	26 "Breast pump collection and storage supplies"
	5795	+
	5796	+
	5797	+
	5798	+
	5799	+
	5800	+	SB1963 Enrolled - 162 - LRB103 25648 HLH 51997 b
	5801	+
	5802	+
	5803	+	SB1963 Enrolled- 163 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 163 - LRB103 25648 HLH 51997 b
	5804	+	SB1963 Enrolled - 163 - LRB103 25648 HLH 51997 b
	5805	+	1 includes, but is not limited to: breast shields and breast
	5806	+	2 shield connectors; breast pump tubes and tubing adapters;
	5807	+	3 breast pump valves and membranes; backflow protectors and
	5808	+	4 backflow protector adaptors; bottles and bottle caps
	5809	+	5 specific to the operation of the breast pump; and breast
	5810	+	6 milk storage bags.
	5811	+	7 "Breast pump collection and storage supplies" does not
	5812	+	8 include: (1) bottles and bottle caps not specific to the
	5813	+	9 operation of the breast pump; (2) breast pump travel bags
	5814	+	10 and other similar carrying accessories, including ice
	5815	+	11 packs, labels, and other similar products; (3) breast pump
	5816	+	12 cleaning supplies; (4) nursing bras, bra pads, breast
	5817	+	13 shells, and other similar products; and (5) creams,
	5818	+	14 ointments, and other similar products that relieve
	5819	+	15 breastfeeding-related symptoms or conditions of the
	5820	+	16 breasts or nipples, unless sold as part of a breast pump
	5821	+	17 kit that is pre-packaged by the breast pump manufacturer
	5822	+	18 or distributor.
	5823	+	19 "Breast pump kit" means a kit that: (1) contains no
	5824	+	20 more than a breast pump, breast pump collection and
	5825	+	21 storage supplies, a rechargeable battery for operating the
	5826	+	22 breast pump, a breastmilk cooler, bottle stands, ice
	5827	+	23 packs, and a breast pump carrying case; and (2) is
	5828	+	24 pre-packaged as a breast pump kit by the breast pump
	5829	+	25 manufacturer or distributor.
	5830	+	26 (33) (32) Tangible personal property sold by or on behalf
	5831	+
	5832	+
	5833	+
	5834	+
	5835	+
	5836	+	SB1963 Enrolled - 163 - LRB103 25648 HLH 51997 b
	5837	+
	5838	+
	5839	+	SB1963 Enrolled- 164 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 164 - LRB103 25648 HLH 51997 b
	5840	+	SB1963 Enrolled - 164 - LRB103 25648 HLH 51997 b
	5841	+	1 of the State Treasurer pursuant to the Revised Uniform
	5842	+	2 Unclaimed Property Act. This item (33) (32) is exempt from the
	5843	+	3 provisions of Section 3-75.
	5844	+	4 (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
	5845	+	5 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
	5846	+	6 70, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
	5847	+	7 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
	5848	+	8 Section 15-15. The Service Occupation Tax Act is amended
	5849	+	9 by changing Section 3-5 as follows:
	5850	+	10 (35 ILCS 115/3-5)
	5851	+	11 Sec. 3-5. Exemptions. The following tangible personal
	5852	+	12 property is exempt from the tax imposed by this Act:
	5853	+	13 (1) Personal property sold by a corporation, society,
	5854	+	14 association, foundation, institution, or organization, other
	5855	+	15 than a limited liability company, that is organized and
	5856	+	16 operated as a not-for-profit service enterprise for the
	5857	+	17 benefit of persons 65 years of age or older if the personal
	5858	+	18 property was not purchased by the enterprise for the purpose
	5859	+	19 of resale by the enterprise.
	5860	+	20 (2) Personal property purchased by a not-for-profit
	5861	+	21 Illinois county fair association for use in conducting,
	5862	+	22 operating, or promoting the county fair.
	5863	+	23 (3) Personal property purchased by any not-for-profit arts
	5864	+	24 or cultural organization that establishes, by proof required
	5865	+
	5866	+
	5867	+
	5868	+
	5869	+
	5870	+	SB1963 Enrolled - 164 - LRB103 25648 HLH 51997 b
	5871	+
	5872	+
	5873	+	SB1963 Enrolled- 165 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 165 - LRB103 25648 HLH 51997 b
	5874	+	SB1963 Enrolled - 165 - LRB103 25648 HLH 51997 b
	5875	+	1 by the Department by rule, that it has received an exemption
	5876	+	2 under Section 501(c)(3) of the Internal Revenue Code and that
	5877	+	3 is organized and operated primarily for the presentation or
	5878	+	4 support of arts or cultural programming, activities, or
	5879	+	5 services. These organizations include, but are not limited to,
	5880	+	6 music and dramatic arts organizations such as symphony
	5881	+	7 orchestras and theatrical groups, arts and cultural service
	5882	+	8 organizations, local arts councils, visual arts organizations,
	5883	+	9 and media arts organizations. On and after July 1, 2001 (the
	5884	+	10 effective date of Public Act 92-35), however, an entity
	5885	+	11 otherwise eligible for this exemption shall not make tax-free
	5886	+	12 purchases unless it has an active identification number issued
	5887	+	13 by the Department.
	5888	+	14 (4) Legal tender, currency, medallions, or gold or silver
	5889	+	15 coinage issued by the State of Illinois, the government of the
	5890	+	16 United States of America, or the government of any foreign
	5891	+	17 country, and bullion.
	5892	+	18 (5) Until July 1, 2003 and beginning again on September 1,
	5893	+	19 2004 through August 30, 2014, graphic arts machinery and
	5894	+	20 equipment, including repair and replacement parts, both new
	5895	+	21 and used, and including that manufactured on special order or
	5896	+	22 purchased for lease, certified by the purchaser to be used
	5897	+	23 primarily for graphic arts production. Equipment includes
	5898	+	24 chemicals or chemicals acting as catalysts but only if the
	5899	+	25 chemicals or chemicals acting as catalysts effect a direct and
	5900	+	26 immediate change upon a graphic arts product. Beginning on
	5901	+
	5902	+
	5903	+
	5904	+
	5905	+
	5906	+	SB1963 Enrolled - 165 - LRB103 25648 HLH 51997 b
	5907	+
	5908	+
	5909	+	SB1963 Enrolled- 166 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 166 - LRB103 25648 HLH 51997 b
	5910	+	SB1963 Enrolled - 166 - LRB103 25648 HLH 51997 b
	5911	+	1 July 1, 2017, graphic arts machinery and equipment is included
	5912	+	2 in the manufacturing and assembling machinery and equipment
	5913	+	3 exemption under Section 2 of this Act.
	5914	+	4 (6) Personal property sold by a teacher-sponsored student
	5915	+	5 organization affiliated with an elementary or secondary school
	5916	+	6 located in Illinois.
	5917	+	7 (7) Farm machinery and equipment, both new and used,
	5918	+	8 including that manufactured on special order, certified by the
	5919	+	9 purchaser to be used primarily for production agriculture or
	5920	+	10 State or federal agricultural programs, including individual
	5921	+	11 replacement parts for the machinery and equipment, including
	5922	+	12 machinery and equipment purchased for lease, and including
	5923	+	13 implements of husbandry defined in Section 1-130 of the
	5924	+	14 Illinois Vehicle Code, farm machinery and agricultural
	5925	+	15 chemical and fertilizer spreaders, and nurse wagons required
	5926	+	16 to be registered under Section 3-809 of the Illinois Vehicle
	5927	+	17 Code, but excluding other motor vehicles required to be
	5928	+	18 registered under the Illinois Vehicle Code. Horticultural
	5929	+	19 polyhouses or hoop houses used for propagating, growing, or
	5930	+	20 overwintering plants shall be considered farm machinery and
	5931	+	21 equipment under this item (7). Agricultural chemical tender
	5932	+	22 tanks and dry boxes shall include units sold separately from a
	5933	+	23 motor vehicle required to be licensed and units sold mounted
	5934	+	24 on a motor vehicle required to be licensed if the selling price
	5935	+	25 of the tender is separately stated.
	5936	+	26 Farm machinery and equipment shall include precision
	5937	+
	5938	+
	5939	+
	5940	+
	5941	+
	5942	+	SB1963 Enrolled - 166 - LRB103 25648 HLH 51997 b
	5943	+
	5944	+
	5945	+	SB1963 Enrolled- 167 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 167 - LRB103 25648 HLH 51997 b
	5946	+	SB1963 Enrolled - 167 - LRB103 25648 HLH 51997 b
	5947	+	1 farming equipment that is installed or purchased to be
	5948	+	2 installed on farm machinery and equipment including, but not
	5949	+	3 limited to, tractors, harvesters, sprayers, planters, seeders,
	5950	+	4 or spreaders. Precision farming equipment includes, but is not
	5951	+	5 limited to, soil testing sensors, computers, monitors,
	5952	+	6 software, global positioning and mapping systems, and other
	5953	+	7 such equipment.
	5954	+	8 Farm machinery and equipment also includes computers,
	5955	+	9 sensors, software, and related equipment used primarily in the
	5956	+	10 computer-assisted operation of production agriculture
	5957	+	11 facilities, equipment, and activities such as, but not limited
	5958	+	12 to, the collection, monitoring, and correlation of animal and
	5959	+	13 crop data for the purpose of formulating animal diets and
	5960	+	14 agricultural chemicals.
	5961	+	15 Beginning on January 1, 2024, farm machinery and equipment
	5962	+	16 also includes electrical power generation equipment used
	5963	+	17 primarily for production agriculture.
	5964	+	18 This item (7) is exempt from the provisions of Section
	5965	+	19 3-55.
	5966	+	20 (8) Until June 30, 2013, fuel and petroleum products sold
	5967	+	21 to or used by an air common carrier, certified by the carrier
	5968	+	22 to be used for consumption, shipment, or storage in the
	5969	+	23 conduct of its business as an air common carrier, for a flight
	5970	+	24 destined for or returning from a location or locations outside
	5971	+	25 the United States without regard to previous or subsequent
	5972	+	26 domestic stopovers.
	5973	+
	5974	+
	5975	+
	5976	+
	5977	+
	5978	+	SB1963 Enrolled - 167 - LRB103 25648 HLH 51997 b
	5979	+
	5980	+
	5981	+	SB1963 Enrolled- 168 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 168 - LRB103 25648 HLH 51997 b
	5982	+	SB1963 Enrolled - 168 - LRB103 25648 HLH 51997 b
	5983	+	1 Beginning July 1, 2013, fuel and petroleum products sold
	5984	+	2 to or used by an air carrier, certified by the carrier to be
	5985	+	3 used for consumption, shipment, or storage in the conduct of
	5986	+	4 its business as an air common carrier, for a flight that (i) is
	5987	+	5 engaged in foreign trade or is engaged in trade between the
	5988	+	6 United States and any of its possessions and (ii) transports
	5989	+	7 at least one individual or package for hire from the city of
	5990	+	8 origination to the city of final destination on the same
	5991	+	9 aircraft, without regard to a change in the flight number of
	5992	+	10 that aircraft.
	5993	+	11 (9) Proceeds of mandatory service charges separately
	5994	+	12 stated on customers' bills for the purchase and consumption of
	5995	+	13 food and beverages, to the extent that the proceeds of the
	5996	+	14 service charge are in fact turned over as tips or as a
	5997	+	15 substitute for tips to the employees who participate directly
	5998	+	16 in preparing, serving, hosting or cleaning up the food or
	5999	+	17 beverage function with respect to which the service charge is
	6000	+	18 imposed.
	6001	+	19 (10) Until July 1, 2003, oil field exploration, drilling,
	6002	+	20 and production equipment, including (i) rigs and parts of
	6003	+	21 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
	6004	+	22 pipe and tubular goods, including casing and drill strings,
	6005	+	23 (iii) pumps and pump-jack units, (iv) storage tanks and flow
	6006	+	24 lines, (v) any individual replacement part for oil field
	6007	+	25 exploration, drilling, and production equipment, and (vi)
	6008	+	26 machinery and equipment purchased for lease; but excluding
	6009	+
	6010	+
	6011	+
	6012	+
	6013	+
	6014	+	SB1963 Enrolled - 168 - LRB103 25648 HLH 51997 b
	6015	+
	6016	+
	6017	+	SB1963 Enrolled- 169 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 169 - LRB103 25648 HLH 51997 b
	6018	+	SB1963 Enrolled - 169 - LRB103 25648 HLH 51997 b
	6019	+	1 motor vehicles required to be registered under the Illinois
	6020	+	2 Vehicle Code.
	6021	+	3 (11) Photoprocessing machinery and equipment, including
	6022	+	4 repair and replacement parts, both new and used, including
	6023	+	5 that manufactured on special order, certified by the purchaser
	6024	+	6 to be used primarily for photoprocessing, and including
	6025	+	7 photoprocessing machinery and equipment purchased for lease.
	6026	+	8 (12) Until July 1, 2028, coal and aggregate exploration,
	6027	+	9 mining, off-highway hauling, processing, maintenance, and
	6028	+	10 reclamation equipment, including replacement parts and
	6029	+	11 equipment, and including equipment purchased for lease, but
	6030	+	12 excluding motor vehicles required to be registered under the
	6031	+	13 Illinois Vehicle Code. The changes made to this Section by
	6032	+	14 Public Act 97-767 apply on and after July 1, 2003, but no claim
	6033	+	15 for credit or refund is allowed on or after August 16, 2013
	6034	+	16 (the effective date of Public Act 98-456) for such taxes paid
	6035	+	17 during the period beginning July 1, 2003 and ending on August
	6036	+	18 16, 2013 (the effective date of Public Act 98-456).
	6037	+	19 (13) Beginning January 1, 1992 and through June 30, 2016,
	6038	+	20 food for human consumption that is to be consumed off the
	6039	+	21 premises where it is sold (other than alcoholic beverages,
	6040	+	22 soft drinks and food that has been prepared for immediate
	6041	+	23 consumption) and prescription and non-prescription medicines,
	6042	+	24 drugs, medical appliances, and insulin, urine testing
	6043	+	25 materials, syringes, and needles used by diabetics, for human
	6044	+	26 use, when purchased for use by a person receiving medical
	6045	+
	6046	+
	6047	+
	6048	+
	6049	+
	6050	+	SB1963 Enrolled - 169 - LRB103 25648 HLH 51997 b
	6051	+
	6052	+
	6053	+	SB1963 Enrolled- 170 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 170 - LRB103 25648 HLH 51997 b
	6054	+	SB1963 Enrolled - 170 - LRB103 25648 HLH 51997 b
	6055	+	1 assistance under Article V of the Illinois Public Aid Code who
	6056	+	2 resides in a licensed long-term care facility, as defined in
	6057	+	3 the Nursing Home Care Act, or in a licensed facility as defined
	6058	+	4 in the ID/DD Community Care Act, the MC/DD Act, or the
	6059	+	5 Specialized Mental Health Rehabilitation Act of 2013.
	6060	+	6 (14) Semen used for artificial insemination of livestock
	6061	+	7 for direct agricultural production.
	6062	+	8 (15) Horses, or interests in horses, registered with and
	6063	+	9 meeting the requirements of any of the Arabian Horse Club
	6064	+	10 Registry of America, Appaloosa Horse Club, American Quarter
	6065	+	11 Horse Association, United States Trotting Association, or
	6066	+	12 Jockey Club, as appropriate, used for purposes of breeding or
	6067	+	13 racing for prizes. This item (15) is exempt from the
	6068	+	14 provisions of Section 3-55, and the exemption provided for
	6069	+	15 under this item (15) applies for all periods beginning May 30,
	6070	+	16 1995, but no claim for credit or refund is allowed on or after
	6071	+	17 January 1, 2008 (the effective date of Public Act 95-88) for
	6072	+	18 such taxes paid during the period beginning May 30, 2000 and
	6073	+	19 ending on January 1, 2008 (the effective date of Public Act
	6074	+	20 95-88).
	6075	+	21 (16) Computers and communications equipment utilized for
	6076	+	22 any hospital purpose and equipment used in the diagnosis,
	6077	+	23 analysis, or treatment of hospital patients sold to a lessor
	6078	+	24 who leases the equipment, under a lease of one year or longer
	6079	+	25 executed or in effect at the time of the purchase, to a
	6080	+	26 hospital that has been issued an active tax exemption
	6081	+
	6082	+
	6083	+
	6084	+
	6085	+
	6086	+	SB1963 Enrolled - 170 - LRB103 25648 HLH 51997 b
	6087	+
	6088	+
	6089	+	SB1963 Enrolled- 171 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 171 - LRB103 25648 HLH 51997 b
	6090	+	SB1963 Enrolled - 171 - LRB103 25648 HLH 51997 b
	6091	+	1 identification number by the Department under Section 1g of
	6092	+	2 the Retailers' Occupation Tax Act.
	6093	+	3 (17) Personal property sold to a lessor who leases the
	6094	+	4 property, under a lease of one year or longer executed or in
	6095	+	5 effect at the time of the purchase, to a governmental body that
	6096	+	6 has been issued an active tax exemption identification number
	6097	+	7 by the Department under Section 1g of the Retailers'
	6098	+	8 Occupation Tax Act.
	6099	+	9 (18) Beginning with taxable years ending on or after
	6100	+	10 December 31, 1995 and ending with taxable years ending on or
	6101	+	11 before December 31, 2004, personal property that is donated
	6102	+	12 for disaster relief to be used in a State or federally declared
	6103	+	13 disaster area in Illinois or bordering Illinois by a
	6104	+	14 manufacturer or retailer that is registered in this State to a
	6105	+	15 corporation, society, association, foundation, or institution
	6106	+	16 that has been issued a sales tax exemption identification
	6107	+	17 number by the Department that assists victims of the disaster
	6108	+	18 who reside within the declared disaster area.
	6109	+	19 (19) Beginning with taxable years ending on or after
	6110	+	20 December 31, 1995 and ending with taxable years ending on or
	6111	+	21 before December 31, 2004, personal property that is used in
	6112	+	22 the performance of infrastructure repairs in this State,
	6113	+	23 including but not limited to municipal roads and streets,
	6114	+	24 access roads, bridges, sidewalks, waste disposal systems,
	6115	+	25 water and sewer line extensions, water distribution and
	6116	+	26 purification facilities, storm water drainage and retention
	6117	+
	6118	+
	6119	+
	6120	+
	6121	+
	6122	+	SB1963 Enrolled - 171 - LRB103 25648 HLH 51997 b
	6123	+
	6124	+
	6125	+	SB1963 Enrolled- 172 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 172 - LRB103 25648 HLH 51997 b
	6126	+	SB1963 Enrolled - 172 - LRB103 25648 HLH 51997 b
	6127	+	1 facilities, and sewage treatment facilities, resulting from a
	6128	+	2 State or federally declared disaster in Illinois or bordering
	6129	+	3 Illinois when such repairs are initiated on facilities located
	6130	+	4 in the declared disaster area within 6 months after the
	6131	+	5 disaster.
	6132	+	6 (20) Beginning July 1, 1999, game or game birds sold at a
	6133	+	7 "game breeding and hunting preserve area" as that term is used
	6134	+	8 in the Wildlife Code. This paragraph is exempt from the
	6135	+	9 provisions of Section 3-55.
	6136	+	10 (21) A motor vehicle, as that term is defined in Section
	6137	+	11 1-146 of the Illinois Vehicle Code, that is donated to a
	6138	+	12 corporation, limited liability company, society, association,
	6139	+	13 foundation, or institution that is determined by the
	6140	+	14 Department to be organized and operated exclusively for
	6141	+	15 educational purposes. For purposes of this exemption, "a
	6142	+	16 corporation, limited liability company, society, association,
	6143	+	17 foundation, or institution organized and operated exclusively
	6144	+	18 for educational purposes" means all tax-supported public
	6145	+	19 schools, private schools that offer systematic instruction in
	6146	+	20 useful branches of learning by methods common to public
	6147	+	21 schools and that compare favorably in their scope and
	6148	+	22 intensity with the course of study presented in tax-supported
	6149	+	23 schools, and vocational or technical schools or institutes
	6150	+	24 organized and operated exclusively to provide a course of
	6151	+	25 study of not less than 6 weeks duration and designed to prepare
	6152	+	26 individuals to follow a trade or to pursue a manual,
	6153	+
	6154	+
	6155	+
	6156	+
	6157	+
	6158	+	SB1963 Enrolled - 172 - LRB103 25648 HLH 51997 b
	6159	+
	6160	+
	6161	+	SB1963 Enrolled- 173 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 173 - LRB103 25648 HLH 51997 b
	6162	+	SB1963 Enrolled - 173 - LRB103 25648 HLH 51997 b
	6163	+	1 technical, mechanical, industrial, business, or commercial
	6164	+	2 occupation.
	6165	+	3 (22) Beginning January 1, 2000, personal property,
	6166	+	4 including food, purchased through fundraising events for the
	6167	+	5 benefit of a public or private elementary or secondary school,
	6168	+	6 a group of those schools, or one or more school districts if
	6169	+	7 the events are sponsored by an entity recognized by the school
	6170	+	8 district that consists primarily of volunteers and includes
	6171	+	9 parents and teachers of the school children. This paragraph
	6172	+	10 does not apply to fundraising events (i) for the benefit of
	6173	+	11 private home instruction or (ii) for which the fundraising
	6174	+	12 entity purchases the personal property sold at the events from
	6175	+	13 another individual or entity that sold the property for the
	6176	+	14 purpose of resale by the fundraising entity and that profits
	6177	+	15 from the sale to the fundraising entity. This paragraph is
	6178	+	16 exempt from the provisions of Section 3-55.
	6179	+	17 (23) Beginning January 1, 2000 and through December 31,
	6180	+	18 2001, new or used automatic vending machines that prepare and
	6181	+	19 serve hot food and beverages, including coffee, soup, and
	6182	+	20 other items, and replacement parts for these machines.
	6183	+	21 Beginning January 1, 2002 and through June 30, 2003, machines
	6184	+	22 and parts for machines used in commercial, coin-operated
	6185	+	23 amusement and vending business if a use or occupation tax is
	6186	+	24 paid on the gross receipts derived from the use of the
	6187	+	25 commercial, coin-operated amusement and vending machines. This
	6188	+	26 paragraph is exempt from the provisions of Section 3-55.
	6189	+
	6190	+
	6191	+
	6192	+
	6193	+
	6194	+	SB1963 Enrolled - 173 - LRB103 25648 HLH 51997 b
	6195	+
	6196	+
	6197	+	SB1963 Enrolled- 174 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 174 - LRB103 25648 HLH 51997 b
	6198	+	SB1963 Enrolled - 174 - LRB103 25648 HLH 51997 b
	6199	+	1 (24) Beginning on August 2, 2001 (the effective date of
	6200	+	2 Public Act 92-227), computers and communications equipment
	6201	+	3 utilized for any hospital purpose and equipment used in the
	6202	+	4 diagnosis, analysis, or treatment of hospital patients sold to
	6203	+	5 a lessor who leases the equipment, under a lease of one year or
	6204	+	6 longer executed or in effect at the time of the purchase, to a
	6205	+	7 hospital that has been issued an active tax exemption
	6206	+	8 identification number by the Department under Section 1g of
	6207	+	9 the Retailers' Occupation Tax Act. This paragraph is exempt
	6208	+	10 from the provisions of Section 3-55.
	6209	+	11 (25) Beginning on August 2, 2001 (the effective date of
	6210	+	12 Public Act 92-227), personal property sold to a lessor who
	6211	+	13 leases the property, under a lease of one year or longer
	6212	+	14 executed or in effect at the time of the purchase, to a
	6213	+	15 governmental body that has been issued an active tax exemption
	6214	+	16 identification number by the Department under Section 1g of
	6215	+	17 the Retailers' Occupation Tax Act. This paragraph is exempt
	6216	+	18 from the provisions of Section 3-55.
	6217	+	19 (26) Beginning on January 1, 2002 and through June 30,
	6218	+	20 2016, tangible personal property purchased from an Illinois
	6219	+	21 retailer by a taxpayer engaged in centralized purchasing
	6220	+	22 activities in Illinois who will, upon receipt of the property
	6221	+	23 in Illinois, temporarily store the property in Illinois (i)
	6222	+	24 for the purpose of subsequently transporting it outside this
	6223	+	25 State for use or consumption thereafter solely outside this
	6224	+	26 State or (ii) for the purpose of being processed, fabricated,
	6225	+
	6226	+
	6227	+
	6228	+
	6229	+
	6230	+	SB1963 Enrolled - 174 - LRB103 25648 HLH 51997 b
	6231	+
	6232	+
	6233	+	SB1963 Enrolled- 175 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 175 - LRB103 25648 HLH 51997 b
	6234	+	SB1963 Enrolled - 175 - LRB103 25648 HLH 51997 b
	6235	+	1 or manufactured into, attached to, or incorporated into other
	6236	+	2 tangible personal property to be transported outside this
	6237	+	3 State and thereafter used or consumed solely outside this
	6238	+	4 State. The Director of Revenue shall, pursuant to rules
	6239	+	5 adopted in accordance with the Illinois Administrative
	6240	+	6 Procedure Act, issue a permit to any taxpayer in good standing
	6241	+	7 with the Department who is eligible for the exemption under
	6242	+	8 this paragraph (26). The permit issued under this paragraph
	6243	+	9 (26) shall authorize the holder, to the extent and in the
	6244	+	10 manner specified in the rules adopted under this Act, to
	6245	+	11 purchase tangible personal property from a retailer exempt
	6246	+	12 from the taxes imposed by this Act. Taxpayers shall maintain
	6247	+	13 all necessary books and records to substantiate the use and
	6248	+	14 consumption of all such tangible personal property outside of
	6249	+	15 the State of Illinois.
	6250	+	16 (27) Beginning January 1, 2008, tangible personal property
	6251	+	17 used in the construction or maintenance of a community water
	6252	+	18 supply, as defined under Section 3.145 of the Environmental
	6253	+	19 Protection Act, that is operated by a not-for-profit
	6254	+	20 corporation that holds a valid water supply permit issued
	6255	+	21 under Title IV of the Environmental Protection Act. This
	6256	+	22 paragraph is exempt from the provisions of Section 3-55.
	6257	+	23 (28) Tangible personal property sold to a
	6258	+	24 public-facilities corporation, as described in Section
	6259	+	25 11-65-10 of the Illinois Municipal Code, for purposes of
	6260	+	26 constructing or furnishing a municipal convention hall, but
	6261	+
	6262	+
	6263	+
	6264	+
	6265	+
	6266	+	SB1963 Enrolled - 175 - LRB103 25648 HLH 51997 b
	6267	+
	6268	+
	6269	+	SB1963 Enrolled- 176 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 176 - LRB103 25648 HLH 51997 b
	6270	+	SB1963 Enrolled - 176 - LRB103 25648 HLH 51997 b
	6271	+	1 only if the legal title to the municipal convention hall is
	6272	+	2 transferred to the municipality without any further
	6273	+	3 consideration by or on behalf of the municipality at the time
	6274	+	4 of the completion of the municipal convention hall or upon the
	6275	+	5 retirement or redemption of any bonds or other debt
	6276	+	6 instruments issued by the public-facilities corporation in
	6277	+	7 connection with the development of the municipal convention
	6278	+	8 hall. This exemption includes existing public-facilities
	6279	+	9 corporations as provided in Section 11-65-25 of the Illinois
	6280	+	10 Municipal Code. This paragraph is exempt from the provisions
	6281	+	11 of Section 3-55.
	6282	+	12 (29) Beginning January 1, 2010 and continuing through
	6283	+	13 December 31, 2024, materials, parts, equipment, components,
	6284	+	14 and furnishings incorporated into or upon an aircraft as part
	6285	+	15 of the modification, refurbishment, completion, replacement,
	6286	+	16 repair, or maintenance of the aircraft. This exemption
	6287	+	17 includes consumable supplies used in the modification,
	6288	+	18 refurbishment, completion, replacement, repair, and
	6289	+	19 maintenance of aircraft, but excludes any materials, parts,
	6290	+	20 equipment, components, and consumable supplies used in the
	6291	+	21 modification, replacement, repair, and maintenance of aircraft
	6292	+	22 engines or power plants, whether such engines or power plants
	6293	+	23 are installed or uninstalled upon any such aircraft.
	6294	+	24 "Consumable supplies" include, but are not limited to,
	6295	+	25 adhesive, tape, sandpaper, general purpose lubricants,
	6296	+	26 cleaning solution, latex gloves, and protective films. This
	6297	+
	6298	+
	6299	+
	6300	+
	6301	+
	6302	+	SB1963 Enrolled - 176 - LRB103 25648 HLH 51997 b
	6303	+
	6304	+
	6305	+	SB1963 Enrolled- 177 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 177 - LRB103 25648 HLH 51997 b
	6306	+	SB1963 Enrolled - 177 - LRB103 25648 HLH 51997 b
	6307	+	1 exemption applies only to the transfer of qualifying tangible
	6308	+	2 personal property incident to the modification, refurbishment,
	6309	+	3 completion, replacement, repair, or maintenance of an aircraft
	6310	+	4 by persons who (i) hold an Air Agency Certificate and are
	6311	+	5 empowered to operate an approved repair station by the Federal
	6312	+	6 Aviation Administration, (ii) have a Class IV Rating, and
	6313	+	7 (iii) conduct operations in accordance with Part 145 of the
	6314	+	8 Federal Aviation Regulations. The exemption does not include
	6315	+	9 aircraft operated by a commercial air carrier providing
	6316	+	10 scheduled passenger air service pursuant to authority issued
	6317	+	11 under Part 121 or Part 129 of the Federal Aviation
	6318	+	12 Regulations. The changes made to this paragraph (29) by Public
	6319	+	13 Act 98-534 are declarative of existing law. It is the intent of
	6320	+	14 the General Assembly that the exemption under this paragraph
	6321	+	15 (29) applies continuously from January 1, 2010 through
	6322	+	16 December 31, 2024; however, no claim for credit or refund is
	6323	+	17 allowed for taxes paid as a result of the disallowance of this
	6324	+	18 exemption on or after January 1, 2015 and prior to February 5,
	6325	+	19 2020 (the effective date of Public Act 101-629) this
	6326	+	20 amendatory Act of the 101st General Assembly.
	6327	+	21 (30) Beginning January 1, 2017 and through December 31,
	6328	+	22 2026, menstrual pads, tampons, and menstrual cups.
	6329	+	23 (31) Tangible personal property transferred to a purchaser
	6330	+	24 who is exempt from tax by operation of federal law. This
	6331	+	25 paragraph is exempt from the provisions of Section 3-55.
	6332	+	26 (32) Qualified tangible personal property used in the
	6333	+
	6334	+
	6335	+
	6336	+
	6337	+
	6338	+	SB1963 Enrolled - 177 - LRB103 25648 HLH 51997 b
	6339	+
	6340	+
	6341	+	SB1963 Enrolled- 178 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 178 - LRB103 25648 HLH 51997 b
	6342	+	SB1963 Enrolled - 178 - LRB103 25648 HLH 51997 b
	6343	+	1 construction or operation of a data center that has been
	6344	+	2 granted a certificate of exemption by the Department of
	6345	+	3 Commerce and Economic Opportunity, whether that tangible
	6346	+	4 personal property is purchased by the owner, operator, or
	6347	+	5 tenant of the data center or by a contractor or subcontractor
	6348	+	6 of the owner, operator, or tenant. Data centers that would
	6349	+	7 have qualified for a certificate of exemption prior to January
	6350	+	8 1, 2020 had Public Act 101-31 this amendatory Act of the 101st
	6351	+	9 General Assembly been in effect, may apply for and obtain an
	6352	+	10 exemption for subsequent purchases of computer equipment or
	6353	+	11 enabling software purchased or leased to upgrade, supplement,
	6354	+	12 or replace computer equipment or enabling software purchased
	6355	+	13 or leased in the original investment that would have
	6356	+	14 qualified.
	6357	+	15 The Department of Commerce and Economic Opportunity shall
	6358	+	16 grant a certificate of exemption under this item (32) to
	6359	+	17 qualified data centers as defined by Section 605-1025 of the
	6360	+	18 Department of Commerce and Economic Opportunity Law of the
	6361	+	19 Civil Administrative Code of Illinois.
	6362	+	20 For the purposes of this item (32):
	6363	+	21 "Data center" means a building or a series of
	6364	+	22 buildings rehabilitated or constructed to house working
	6365	+	23 servers in one physical location or multiple sites within
	6366	+	24 the State of Illinois.
	6367	+	25 "Qualified tangible personal property" means:
	6368	+	26 electrical systems and equipment; climate control and
	6369	+
	6370	+
	6371	+
	6372	+
	6373	+
	6374	+	SB1963 Enrolled - 178 - LRB103 25648 HLH 51997 b
	6375	+
	6376	+
	6377	+	SB1963 Enrolled- 179 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 179 - LRB103 25648 HLH 51997 b
	6378	+	SB1963 Enrolled - 179 - LRB103 25648 HLH 51997 b
	6379	+	1 chilling equipment and systems; mechanical systems and
	6380	+	2 equipment; monitoring and secure systems; emergency
	6381	+	3 generators; hardware; computers; servers; data storage
	6382	+	4 devices; network connectivity equipment; racks; cabinets;
	6383	+	5 telecommunications cabling infrastructure; raised floor
	6384	+	6 systems; peripheral components or systems; software;
	6385	+	7 mechanical, electrical, or plumbing systems; battery
	6386	+	8 systems; cooling systems and towers; temperature control
	6387	+	9 systems; other cabling; and other data center
	6388	+	10 infrastructure equipment and systems necessary to operate
	6389	+	11 qualified tangible personal property, including fixtures;
	6390	+	12 and component parts of any of the foregoing, including
	6391	+	13 installation, maintenance, repair, refurbishment, and
	6392	+	14 replacement of qualified tangible personal property to
	6393	+	15 generate, transform, transmit, distribute, or manage
	6394	+	16 electricity necessary to operate qualified tangible
	6395	+	17 personal property; and all other tangible personal
	6396	+	18 property that is essential to the operations of a computer
	6397	+	19 data center. The term "qualified tangible personal
	6398	+	20 property" also includes building materials physically
	6399	+	21 incorporated in to the qualifying data center. To document
	6400	+	22 the exemption allowed under this Section, the retailer
	6401	+	23 must obtain from the purchaser a copy of the certificate
	6402	+	24 of eligibility issued by the Department of Commerce and
	6403	+	25 Economic Opportunity.
	6404	+	26 This item (32) is exempt from the provisions of Section
	6405	+
	6406	+
	6407	+
	6408	+
	6409	+
	6410	+	SB1963 Enrolled - 179 - LRB103 25648 HLH 51997 b
	6411	+
	6412	+
	6413	+	SB1963 Enrolled- 180 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 180 - LRB103 25648 HLH 51997 b
	6414	+	SB1963 Enrolled - 180 - LRB103 25648 HLH 51997 b
	6415	+	1 3-55.
	6416	+	2 (33) Beginning July 1, 2022, breast pumps, breast pump
	6417	+	3 collection and storage supplies, and breast pump kits. This
	6418	+	4 item (33) is exempt from the provisions of Section 3-55. As
	6419	+	5 used in this item (33):
	6420	+	6 "Breast pump" means an electrically controlled or
	6421	+	7 manually controlled pump device designed or marketed to be
	6422	+	8 used to express milk from a human breast during lactation,
	6423	+	9 including the pump device and any battery, AC adapter, or
	6424	+	10 other power supply unit that is used to power the pump
	6425	+	11 device and is packaged and sold with the pump device at the
	6426	+	12 time of sale.
	6427	+	13 "Breast pump collection and storage supplies" means
	6428	+	14 items of tangible personal property designed or marketed
	6429	+	15 to be used in conjunction with a breast pump to collect
	6430	+	16 milk expressed from a human breast and to store collected
	6431	+	17 milk until it is ready for consumption.
	6432	+	18 "Breast pump collection and storage supplies"
	6433	+	19 includes, but is not limited to: breast shields and breast
	6434	+	20 shield connectors; breast pump tubes and tubing adapters;
	6435	+	21 breast pump valves and membranes; backflow protectors and
	6436	+	22 backflow protector adaptors; bottles and bottle caps
	6437	+	23 specific to the operation of the breast pump; and breast
	6438	+	24 milk storage bags.
	6439	+	25 "Breast pump collection and storage supplies" does not
	6440	+	26 include: (1) bottles and bottle caps not specific to the
	6441	+
	6442	+
	6443	+
	6444	+
	6445	+
	6446	+	SB1963 Enrolled - 180 - LRB103 25648 HLH 51997 b
	6447	+
	6448	+
	6449	+	SB1963 Enrolled- 181 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 181 - LRB103 25648 HLH 51997 b
	6450	+	SB1963 Enrolled - 181 - LRB103 25648 HLH 51997 b
	6451	+	1 operation of the breast pump; (2) breast pump travel bags
	6452	+	2 and other similar carrying accessories, including ice
	6453	+	3 packs, labels, and other similar products; (3) breast pump
	6454	+	4 cleaning supplies; (4) nursing bras, bra pads, breast
	6455	+	5 shells, and other similar products; and (5) creams,
	6456	+	6 ointments, and other similar products that relieve
	6457	+	7 breastfeeding-related symptoms or conditions of the
	6458	+	8 breasts or nipples, unless sold as part of a breast pump
	6459	+	9 kit that is pre-packaged by the breast pump manufacturer
	6460	+	10 or distributor.
	6461	+	11 "Breast pump kit" means a kit that: (1) contains no
	6462	+	12 more than a breast pump, breast pump collection and
	6463	+	13 storage supplies, a rechargeable battery for operating the
	6464	+	14 breast pump, a breastmilk cooler, bottle stands, ice
	6465	+	15 packs, and a breast pump carrying case; and (2) is
	6466	+	16 pre-packaged as a breast pump kit by the breast pump
	6467	+	17 manufacturer or distributor.
	6468	+	18 (34) (33) Tangible personal property sold by or on behalf
	6469	+	19 of the State Treasurer pursuant to the Revised Uniform
	6470	+	20 Unclaimed Property Act. This item (34) (33) is exempt from the
	6471	+	21 provisions of Section 3-55.
	6472	+	22 (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
	6473	+	23 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
	6474	+	24 70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
	6475	+	25 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
	6476	+
	6477	+
	6478	+
	6479	+
	6480	+
	6481	+	SB1963 Enrolled - 181 - LRB103 25648 HLH 51997 b
	6482	+
	6483	+
	6484	+	SB1963 Enrolled- 182 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 182 - LRB103 25648 HLH 51997 b
	6485	+	SB1963 Enrolled - 182 - LRB103 25648 HLH 51997 b
	6486	+	1 Section 15-20. The Retailers' Occupation Tax Act is
	6487	+	2 amended by changing Section 2-5 as follows:
	6488	+	3 (35 ILCS 120/2-5)
	6489	+	4 Sec. 2-5. Exemptions. Gross receipts from proceeds from
	6490	+	5 the sale of the following tangible personal property are
	6491	+	6 exempt from the tax imposed by this Act:
	6492	+	7 (1) Farm chemicals.
	6493	+	8 (2) Farm machinery and equipment, both new and used,
	6494	+	9 including that manufactured on special order, certified by
	6495	+	10 the purchaser to be used primarily for production
	6496	+	11 agriculture or State or federal agricultural programs,
	6497	+	12 including individual replacement parts for the machinery
	6498	+	13 and equipment, including machinery and equipment purchased
	6499	+	14 for lease, and including implements of husbandry defined
	6500	+	15 in Section 1-130 of the Illinois Vehicle Code, farm
	6501	+	16 machinery and agricultural chemical and fertilizer
	6502	+	17 spreaders, and nurse wagons required to be registered
	6503	+	18 under Section 3-809 of the Illinois Vehicle Code, but
	6504	+	19 excluding other motor vehicles required to be registered
	6505	+	20 under the Illinois Vehicle Code. Horticultural polyhouses
	6506	+	21 or hoop houses used for propagating, growing, or
	6507	+	22 overwintering plants shall be considered farm machinery
	6508	+	23 and equipment under this item (2). Agricultural chemical
	6509	+	24 tender tanks and dry boxes shall include units sold
	6510	+	25 separately from a motor vehicle required to be licensed
	6511	+
	6512	+
	6513	+
	6514	+
	6515	+
	6516	+	SB1963 Enrolled - 182 - LRB103 25648 HLH 51997 b
	6517	+
	6518	+
	6519	+	SB1963 Enrolled- 183 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 183 - LRB103 25648 HLH 51997 b
	6520	+	SB1963 Enrolled - 183 - LRB103 25648 HLH 51997 b
	6521	+	1 and units sold mounted on a motor vehicle required to be
	6522	+	2 licensed, if the selling price of the tender is separately
	6523	+	3 stated.
	6524	+	4 Farm machinery and equipment shall include precision
	6525	+	5 farming equipment that is installed or purchased to be
	6526	+	6 installed on farm machinery and equipment including, but
	6527	+	7 not limited to, tractors, harvesters, sprayers, planters,
	6528	+	8 seeders, or spreaders. Precision farming equipment
	6529	+	9 includes, but is not limited to, soil testing sensors,
	6530	+	10 computers, monitors, software, global positioning and
	6531	+	11 mapping systems, and other such equipment.
	6532	+	12 Farm machinery and equipment also includes computers,
	6533	+	13 sensors, software, and related equipment used primarily in
	6534	+	14 the computer-assisted operation of production agriculture
	6535	+	15 facilities, equipment, and activities such as, but not
	6536	+	16 limited to, the collection, monitoring, and correlation of
	6537	+	17 animal and crop data for the purpose of formulating animal
	6538	+	18 diets and agricultural chemicals.
	6539	+	19 Beginning on January 1, 2024, farm machinery and
	6540	+	20 equipment also includes electrical power generation
	6541	+	21 equipment used primarily for production agriculture.
	6542	+	22 This item (2) is exempt from the provisions of Section
	6543	+	23 2-70.
	6544	+	24 (3) Until July 1, 2003, distillation machinery and
	6545	+	25 equipment, sold as a unit or kit, assembled or installed
	6546	+	26 by the retailer, certified by the user to be used only for
	6547	+
	6548	+
	6549	+
	6550	+
	6551	+
	6552	+	SB1963 Enrolled - 183 - LRB103 25648 HLH 51997 b
	6553	+
	6554	+
	6555	+	SB1963 Enrolled- 184 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 184 - LRB103 25648 HLH 51997 b
	6556	+	SB1963 Enrolled - 184 - LRB103 25648 HLH 51997 b
	6557	+	1 the production of ethyl alcohol that will be used for
	6558	+	2 consumption as motor fuel or as a component of motor fuel
	6559	+	3 for the personal use of the user, and not subject to sale
	6560	+	4 or resale.
	6561	+	5 (4) Until July 1, 2003 and beginning again September
	6562	+	6 1, 2004 through August 30, 2014, graphic arts machinery
	6563	+	7 and equipment, including repair and replacement parts,
	6564	+	8 both new and used, and including that manufactured on
	6565	+	9 special order or purchased for lease, certified by the
	6566	+	10 purchaser to be used primarily for graphic arts
	6567	+	11 production. Equipment includes chemicals or chemicals
	6568	+	12 acting as catalysts but only if the chemicals or chemicals
	6569	+	13 acting as catalysts effect a direct and immediate change
	6570	+	14 upon a graphic arts product. Beginning on July 1, 2017,
	6571	+	15 graphic arts machinery and equipment is included in the
	6572	+	16 manufacturing and assembling machinery and equipment
	6573	+	17 exemption under paragraph (14).
	6574	+	18 (5) A motor vehicle that is used for automobile
	6575	+	19 renting, as defined in the Automobile Renting Occupation
	6576	+	20 and Use Tax Act. This paragraph is exempt from the
	6577	+	21 provisions of Section 2-70.
	6578	+	22 (6) Personal property sold by a teacher-sponsored
	6579	+	23 student organization affiliated with an elementary or
	6580	+	24 secondary school located in Illinois.
	6581	+	25 (7) Until July 1, 2003, proceeds of that portion of
	6582	+	26 the selling price of a passenger car the sale of which is
	6583	+
	6584	+
	6585	+
	6586	+
	6587	+
	6588	+	SB1963 Enrolled - 184 - LRB103 25648 HLH 51997 b
	6589	+
	6590	+
	6591	+	SB1963 Enrolled- 185 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 185 - LRB103 25648 HLH 51997 b
	6592	+	SB1963 Enrolled - 185 - LRB103 25648 HLH 51997 b
	6593	+	1 subject to the Replacement Vehicle Tax.
	6594	+	2 (8) Personal property sold to an Illinois county fair
	6595	+	3 association for use in conducting, operating, or promoting
	6596	+	4 the county fair.
	6597	+	5 (9) Personal property sold to a not-for-profit arts or
	6598	+	6 cultural organization that establishes, by proof required
	6599	+	7 by the Department by rule, that it has received an
	6600	+	8 exemption under Section 501(c)(3) of the Internal Revenue
	6601	+	9 Code and that is organized and operated primarily for the
	6602	+	10 presentation or support of arts or cultural programming,
	6603	+	11 activities, or services. These organizations include, but
	6604	+	12 are not limited to, music and dramatic arts organizations
	6605	+	13 such as symphony orchestras and theatrical groups, arts
	6606	+	14 and cultural service organizations, local arts councils,
	6607	+	15 visual arts organizations, and media arts organizations.
	6608	+	16 On and after July 1, 2001 (the effective date of Public Act
	6609	+	17 92-35), however, an entity otherwise eligible for this
	6610	+	18 exemption shall not make tax-free purchases unless it has
	6611	+	19 an active identification number issued by the Department.
	6612	+	20 (10) Personal property sold by a corporation, society,
	6613	+	21 association, foundation, institution, or organization,
	6614	+	22 other than a limited liability company, that is organized
	6615	+	23 and operated as a not-for-profit service enterprise for
	6616	+	24 the benefit of persons 65 years of age or older if the
	6617	+	25 personal property was not purchased by the enterprise for
	6618	+	26 the purpose of resale by the enterprise.
	6619	+
	6620	+
	6621	+
	6622	+
	6623	+
	6624	+	SB1963 Enrolled - 185 - LRB103 25648 HLH 51997 b
	6625	+
	6626	+
	6627	+	SB1963 Enrolled- 186 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 186 - LRB103 25648 HLH 51997 b
	6628	+	SB1963 Enrolled - 186 - LRB103 25648 HLH 51997 b
	6629	+	1 (11) Personal property sold to a governmental body, to
	6630	+	2 a corporation, society, association, foundation, or
	6631	+	3 institution organized and operated exclusively for
	6632	+	4 charitable, religious, or educational purposes, or to a
	6633	+	5 not-for-profit corporation, society, association,
	6634	+	6 foundation, institution, or organization that has no
	6635	+	7 compensated officers or employees and that is organized
	6636	+	8 and operated primarily for the recreation of persons 55
	6637	+	9 years of age or older. A limited liability company may
	6638	+	10 qualify for the exemption under this paragraph only if the
	6639	+	11 limited liability company is organized and operated
	6640	+	12 exclusively for educational purposes. On and after July 1,
	6641	+	13 1987, however, no entity otherwise eligible for this
	6642	+	14 exemption shall make tax-free purchases unless it has an
	6643	+	15 active identification number issued by the Department.
	6644	+	16 (12) (Blank).
	6645	+	17 (12-5) On and after July 1, 2003 and through June 30,
	6646	+	18 2004, motor vehicles of the second division with a gross
	6647	+	19 vehicle weight in excess of 8,000 pounds that are subject
	6648	+	20 to the commercial distribution fee imposed under Section
	6649	+	21 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
	6650	+	22 2004 and through June 30, 2005, the use in this State of
	6651	+	23 motor vehicles of the second division: (i) with a gross
	6652	+	24 vehicle weight rating in excess of 8,000 pounds; (ii) that
	6653	+	25 are subject to the commercial distribution fee imposed
	6654	+	26 under Section 3-815.1 of the Illinois Vehicle Code; and
	6655	+
	6656	+
	6657	+
	6658	+
	6659	+
	6660	+	SB1963 Enrolled - 186 - LRB103 25648 HLH 51997 b
	6661	+
	6662	+
	6663	+	SB1963 Enrolled- 187 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 187 - LRB103 25648 HLH 51997 b
	6664	+	SB1963 Enrolled - 187 - LRB103 25648 HLH 51997 b
	6665	+	1 (iii) that are primarily used for commercial purposes.
	6666	+	2 Through June 30, 2005, this exemption applies to repair
	6667	+	3 and replacement parts added after the initial purchase of
	6668	+	4 such a motor vehicle if that motor vehicle is used in a
	6669	+	5 manner that would qualify for the rolling stock exemption
	6670	+	6 otherwise provided for in this Act. For purposes of this
	6671	+	7 paragraph, "used for commercial purposes" means the
	6672	+	8 transportation of persons or property in furtherance of
	6673	+	9 any commercial or industrial enterprise whether for-hire
	6674	+	10 or not.
	6675	+	11 (13) Proceeds from sales to owners, lessors, or
	6676	+	12 shippers of tangible personal property that is utilized by
	6677	+	13 interstate carriers for hire for use as rolling stock
	6678	+	14 moving in interstate commerce and equipment operated by a
	6679	+	15 telecommunications provider, licensed as a common carrier
	6680	+	16 by the Federal Communications Commission, which is
	6681	+	17 permanently installed in or affixed to aircraft moving in
	6682	+	18 interstate commerce.
	6683	+	19 (14) Machinery and equipment that will be used by the
	6684	+	20 purchaser, or a lessee of the purchaser, primarily in the
	6685	+	21 process of manufacturing or assembling tangible personal
	6686	+	22 property for wholesale or retail sale or lease, whether
	6687	+	23 the sale or lease is made directly by the manufacturer or
	6688	+	24 by some other person, whether the materials used in the
	6689	+	25 process are owned by the manufacturer or some other
	6690	+	26 person, or whether the sale or lease is made apart from or
	6691	+
	6692	+
	6693	+
	6694	+
	6695	+
	6696	+	SB1963 Enrolled - 187 - LRB103 25648 HLH 51997 b
	6697	+
	6698	+
	6699	+	SB1963 Enrolled- 188 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 188 - LRB103 25648 HLH 51997 b
	6700	+	SB1963 Enrolled - 188 - LRB103 25648 HLH 51997 b
	6701	+	1 as an incident to the seller's engaging in the service
	6702	+	2 occupation of producing machines, tools, dies, jigs,
	6703	+	3 patterns, gauges, or other similar items of no commercial
	6704	+	4 value on special order for a particular purchaser. The
	6705	+	5 exemption provided by this paragraph (14) does not include
	6706	+	6 machinery and equipment used in (i) the generation of
	6707	+	7 electricity for wholesale or retail sale; (ii) the
	6708	+	8 generation or treatment of natural or artificial gas for
	6709	+	9 wholesale or retail sale that is delivered to customers
	6710	+	10 through pipes, pipelines, or mains; or (iii) the treatment
	6711	+	11 of water for wholesale or retail sale that is delivered to
	6712	+	12 customers through pipes, pipelines, or mains. The
	6713	+	13 provisions of Public Act 98-583 are declaratory of
	6714	+	14 existing law as to the meaning and scope of this
	6715	+	15 exemption. Beginning on July 1, 2017, the exemption
	6716	+	16 provided by this paragraph (14) includes, but is not
	6717	+	17 limited to, graphic arts machinery and equipment, as
	6718	+	18 defined in paragraph (4) of this Section.
	6719	+	19 (15) Proceeds of mandatory service charges separately
	6720	+	20 stated on customers' bills for purchase and consumption of
	6721	+	21 food and beverages, to the extent that the proceeds of the
	6722	+	22 service charge are in fact turned over as tips or as a
	6723	+	23 substitute for tips to the employees who participate
	6724	+	24 directly in preparing, serving, hosting or cleaning up the
	6725	+	25 food or beverage function with respect to which the
	6726	+	26 service charge is imposed.
	6727	+
	6728	+
	6729	+
	6730	+
	6731	+
	6732	+	SB1963 Enrolled - 188 - LRB103 25648 HLH 51997 b
	6733	+
	6734	+
	6735	+	SB1963 Enrolled- 189 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 189 - LRB103 25648 HLH 51997 b
	6736	+	SB1963 Enrolled - 189 - LRB103 25648 HLH 51997 b
	6737	+	1 (16) Tangible personal property sold to a purchaser if
	6738	+	2 the purchaser is exempt from use tax by operation of
	6739	+	3 federal law. This paragraph is exempt from the provisions
	6740	+	4 of Section 2-70.
	6741	+	5 (17) Tangible personal property sold to a common
	6742	+	6 carrier by rail or motor that receives the physical
	6743	+	7 possession of the property in Illinois and that transports
	6744	+	8 the property, or shares with another common carrier in the
	6745	+	9 transportation of the property, out of Illinois on a
	6746	+	10 standard uniform bill of lading showing the seller of the
	6747	+	11 property as the shipper or consignor of the property to a
	6748	+	12 destination outside Illinois, for use outside Illinois.
	6749	+	13 (18) Legal tender, currency, medallions, or gold or
	6750	+	14 silver coinage issued by the State of Illinois, the
	6751	+	15 government of the United States of America, or the
	6752	+	16 government of any foreign country, and bullion.
	6753	+	17 (19) Until July 1, 2003, oil field exploration,
	6754	+	18 drilling, and production equipment, including (i) rigs and
	6755	+	19 parts of rigs, rotary rigs, cable tool rigs, and workover
	6756	+	20 rigs, (ii) pipe and tubular goods, including casing and
	6757	+	21 drill strings, (iii) pumps and pump-jack units, (iv)
	6758	+	22 storage tanks and flow lines, (v) any individual
	6759	+	23 replacement part for oil field exploration, drilling, and
	6760	+	24 production equipment, and (vi) machinery and equipment
	6761	+	25 purchased for lease; but excluding motor vehicles required
	6762	+	26 to be registered under the Illinois Vehicle Code.
	6763	+
	6764	+
	6765	+
	6766	+
	6767	+
	6768	+	SB1963 Enrolled - 189 - LRB103 25648 HLH 51997 b
	6769	+
	6770	+
	6771	+	SB1963 Enrolled- 190 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 190 - LRB103 25648 HLH 51997 b
	6772	+	SB1963 Enrolled - 190 - LRB103 25648 HLH 51997 b
	6773	+	1 (20) Photoprocessing machinery and equipment,
	6774	+	2 including repair and replacement parts, both new and used,
	6775	+	3 including that manufactured on special order, certified by
	6776	+	4 the purchaser to be used primarily for photoprocessing,
	6777	+	5 and including photoprocessing machinery and equipment
	6778	+	6 purchased for lease.
	6779	+	7 (21) Until July 1, 2028, coal and aggregate
	6780	+	8 exploration, mining, off-highway hauling, processing,
	6781	+	9 maintenance, and reclamation equipment, including
	6782	+	10 replacement parts and equipment, and including equipment
	6783	+	11 purchased for lease, but excluding motor vehicles required
	6784	+	12 to be registered under the Illinois Vehicle Code. The
	6785	+	13 changes made to this Section by Public Act 97-767 apply on
	6786	+	14 and after July 1, 2003, but no claim for credit or refund
	6787	+	15 is allowed on or after August 16, 2013 (the effective date
	6788	+	16 of Public Act 98-456) for such taxes paid during the
	6789	+	17 period beginning July 1, 2003 and ending on August 16,
	6790	+	18 2013 (the effective date of Public Act 98-456).
	6791	+	19 (22) Until June 30, 2013, fuel and petroleum products
	6792	+	20 sold to or used by an air carrier, certified by the carrier
	6793	+	21 to be used for consumption, shipment, or storage in the
	6794	+	22 conduct of its business as an air common carrier, for a
	6795	+	23 flight destined for or returning from a location or
	6796	+	24 locations outside the United States without regard to
	6797	+	25 previous or subsequent domestic stopovers.
	6798	+	26 Beginning July 1, 2013, fuel and petroleum products
	6799	+
	6800	+
	6801	+
	6802	+
	6803	+
	6804	+	SB1963 Enrolled - 190 - LRB103 25648 HLH 51997 b
	6805	+
	6806	+
	6807	+	SB1963 Enrolled- 191 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 191 - LRB103 25648 HLH 51997 b
	6808	+	SB1963 Enrolled - 191 - LRB103 25648 HLH 51997 b
	6809	+	1 sold to or used by an air carrier, certified by the carrier
	6810	+	2 to be used for consumption, shipment, or storage in the
	6811	+	3 conduct of its business as an air common carrier, for a
	6812	+	4 flight that (i) is engaged in foreign trade or is engaged
	6813	+	5 in trade between the United States and any of its
	6814	+	6 possessions and (ii) transports at least one individual or
	6815	+	7 package for hire from the city of origination to the city
	6816	+	8 of final destination on the same aircraft, without regard
	6817	+	9 to a change in the flight number of that aircraft.
	6818	+	10 (23) A transaction in which the purchase order is
	6819	+	11 received by a florist who is located outside Illinois, but
	6820	+	12 who has a florist located in Illinois deliver the property
	6821	+	13 to the purchaser or the purchaser's donee in Illinois.
	6822	+	14 (24) Fuel consumed or used in the operation of ships,
	6823	+	15 barges, or vessels that are used primarily in or for the
	6824	+	16 transportation of property or the conveyance of persons
	6825	+	17 for hire on rivers bordering on this State if the fuel is
	6826	+	18 delivered by the seller to the purchaser's barge, ship, or
	6827	+	19 vessel while it is afloat upon that bordering river.
	6828	+	20 (25) Except as provided in item (25-5) of this
	6829	+	21 Section, a motor vehicle sold in this State to a
	6830	+	22 nonresident even though the motor vehicle is delivered to
	6831	+	23 the nonresident in this State, if the motor vehicle is not
	6832	+	24 to be titled in this State, and if a drive-away permit is
	6833	+	25 issued to the motor vehicle as provided in Section 3-603
	6834	+	26 of the Illinois Vehicle Code or if the nonresident
	6835	+
	6836	+
	6837	+
	6838	+
	6839	+
	6840	+	SB1963 Enrolled - 191 - LRB103 25648 HLH 51997 b
	6841	+
	6842	+
	6843	+	SB1963 Enrolled- 192 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 192 - LRB103 25648 HLH 51997 b
	6844	+	SB1963 Enrolled - 192 - LRB103 25648 HLH 51997 b
	6845	+	1 purchaser has vehicle registration plates to transfer to
	6846	+	2 the motor vehicle upon returning to his or her home state.
	6847	+	3 The issuance of the drive-away permit or having the
	6848	+	4 out-of-state registration plates to be transferred is
	6849	+	5 prima facie evidence that the motor vehicle will not be
	6850	+	6 titled in this State.
	6851	+	7 (25-5) The exemption under item (25) does not apply if
	6852	+	8 the state in which the motor vehicle will be titled does
	6853	+	9 not allow a reciprocal exemption for a motor vehicle sold
	6854	+	10 and delivered in that state to an Illinois resident but
	6855	+	11 titled in Illinois. The tax collected under this Act on
	6856	+	12 the sale of a motor vehicle in this State to a resident of
	6857	+	13 another state that does not allow a reciprocal exemption
	6858	+	14 shall be imposed at a rate equal to the state's rate of tax
	6859	+	15 on taxable property in the state in which the purchaser is
	6860	+	16 a resident, except that the tax shall not exceed the tax
	6861	+	17 that would otherwise be imposed under this Act. At the
	6862	+	18 time of the sale, the purchaser shall execute a statement,
	6863	+	19 signed under penalty of perjury, of his or her intent to
	6864	+	20 title the vehicle in the state in which the purchaser is a
	6865	+	21 resident within 30 days after the sale and of the fact of
	6866	+	22 the payment to the State of Illinois of tax in an amount
	6867	+	23 equivalent to the state's rate of tax on taxable property
	6868	+	24 in his or her state of residence and shall submit the
	6869	+	25 statement to the appropriate tax collection agency in his
	6870	+	26 or her state of residence. In addition, the retailer must
	6871	+
	6872	+
	6873	+
	6874	+
	6875	+
	6876	+	SB1963 Enrolled - 192 - LRB103 25648 HLH 51997 b
	6877	+
	6878	+
	6879	+	SB1963 Enrolled- 193 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 193 - LRB103 25648 HLH 51997 b
	6880	+	SB1963 Enrolled - 193 - LRB103 25648 HLH 51997 b
	6881	+	1 retain a signed copy of the statement in his or her
	6882	+	2 records. Nothing in this item shall be construed to
	6883	+	3 require the removal of the vehicle from this state
	6884	+	4 following the filing of an intent to title the vehicle in
	6885	+	5 the purchaser's state of residence if the purchaser titles
	6886	+	6 the vehicle in his or her state of residence within 30 days
	6887	+	7 after the date of sale. The tax collected under this Act in
	6888	+	8 accordance with this item (25-5) shall be proportionately
	6889	+	9 distributed as if the tax were collected at the 6.25%
	6890	+	10 general rate imposed under this Act.
	6891	+	11 (25-7) Beginning on July 1, 2007, no tax is imposed
	6892	+	12 under this Act on the sale of an aircraft, as defined in
	6893	+	13 Section 3 of the Illinois Aeronautics Act, if all of the
	6894	+	14 following conditions are met:
	6895	+	15 (1) the aircraft leaves this State within 15 days
	6896	+	16 after the later of either the issuance of the final
	6897	+	17 billing for the sale of the aircraft, or the
	6898	+	18 authorized approval for return to service, completion
	6899	+	19 of the maintenance record entry, and completion of the
	6900	+	20 test flight and ground test for inspection, as
	6901	+	21 required by 14 CFR C.F.R. 91.407;
	6902	+	22 (2) the aircraft is not based or registered in
	6903	+	23 this State after the sale of the aircraft; and
	6904	+	24 (3) the seller retains in his or her books and
	6905	+	25 records and provides to the Department a signed and
	6906	+	26 dated certification from the purchaser, on a form
	6907	+
	6908	+
	6909	+
	6910	+
	6911	+
	6912	+	SB1963 Enrolled - 193 - LRB103 25648 HLH 51997 b
	6913	+
	6914	+
	6915	+	SB1963 Enrolled- 194 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 194 - LRB103 25648 HLH 51997 b
	6916	+	SB1963 Enrolled - 194 - LRB103 25648 HLH 51997 b
	6917	+	1 prescribed by the Department, certifying that the
	6918	+	2 requirements of this item (25-7) are met. The
	6919	+	3 certificate must also include the name and address of
	6920	+	4 the purchaser, the address of the location where the
	6921	+	5 aircraft is to be titled or registered, the address of
	6922	+	6 the primary physical location of the aircraft, and
	6923	+	7 other information that the Department may reasonably
	6924	+	8 require.
	6925	+	9 For purposes of this item (25-7):
	6926	+	10 "Based in this State" means hangared, stored, or
	6927	+	11 otherwise used, excluding post-sale customizations as
	6928	+	12 defined in this Section, for 10 or more days in each
	6929	+	13 12-month period immediately following the date of the sale
	6930	+	14 of the aircraft.
	6931	+	15 "Registered in this State" means an aircraft
	6932	+	16 registered with the Department of Transportation,
	6933	+	17 Aeronautics Division, or titled or registered with the
	6934	+	18 Federal Aviation Administration to an address located in
	6935	+	19 this State.
	6936	+	20 This paragraph (25-7) is exempt from the provisions of
	6937	+	21 Section 2-70.
	6938	+	22 (26) Semen used for artificial insemination of
	6939	+	23 livestock for direct agricultural production.
	6940	+	24 (27) Horses, or interests in horses, registered with
	6941	+	25 and meeting the requirements of any of the Arabian Horse
	6942	+	26 Club Registry of America, Appaloosa Horse Club, American
	6943	+
	6944	+
	6945	+
	6946	+
	6947	+
	6948	+	SB1963 Enrolled - 194 - LRB103 25648 HLH 51997 b
	6949	+
	6950	+
	6951	+	SB1963 Enrolled- 195 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 195 - LRB103 25648 HLH 51997 b
	6952	+	SB1963 Enrolled - 195 - LRB103 25648 HLH 51997 b
	6953	+	1 Quarter Horse Association, United States Trotting
	6954	+	2 Association, or Jockey Club, as appropriate, used for
	6955	+	3 purposes of breeding or racing for prizes. This item (27)
	6956	+	4 is exempt from the provisions of Section 2-70, and the
	6957	+	5 exemption provided for under this item (27) applies for
	6958	+	6 all periods beginning May 30, 1995, but no claim for
	6959	+	7 credit or refund is allowed on or after January 1, 2008
	6960	+	8 (the effective date of Public Act 95-88) for such taxes
	6961	+	9 paid during the period beginning May 30, 2000 and ending
	6962	+	10 on January 1, 2008 (the effective date of Public Act
	6963	+	11 95-88).
	6964	+	12 (28) Computers and communications equipment utilized
	6965	+	13 for any hospital purpose and equipment used in the
	6966	+	14 diagnosis, analysis, or treatment of hospital patients
	6967	+	15 sold to a lessor who leases the equipment, under a lease of
	6968	+	16 one year or longer executed or in effect at the time of the
	6969	+	17 purchase, to a hospital that has been issued an active tax
	6970	+	18 exemption identification number by the Department under
	6971	+	19 Section 1g of this Act.
	6972	+	20 (29) Personal property sold to a lessor who leases the
	6973	+	21 property, under a lease of one year or longer executed or
	6974	+	22 in effect at the time of the purchase, to a governmental
	6975	+	23 body that has been issued an active tax exemption
	6976	+	24 identification number by the Department under Section 1g
	6977	+	25 of this Act.
	6978	+	26 (30) Beginning with taxable years ending on or after
	6979	+
	6980	+
	6981	+
	6982	+
	6983	+
	6984	+	SB1963 Enrolled - 195 - LRB103 25648 HLH 51997 b
	6985	+
	6986	+
	6987	+	SB1963 Enrolled- 196 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 196 - LRB103 25648 HLH 51997 b
	6988	+	SB1963 Enrolled - 196 - LRB103 25648 HLH 51997 b
	6989	+	1 December 31, 1995 and ending with taxable years ending on
	6990	+	2 or before December 31, 2004, personal property that is
	6991	+	3 donated for disaster relief to be used in a State or
	6992	+	4 federally declared disaster area in Illinois or bordering
	6993	+	5 Illinois by a manufacturer or retailer that is registered
	6994	+	6 in this State to a corporation, society, association,
	6995	+	7 foundation, or institution that has been issued a sales
	6996	+	8 tax exemption identification number by the Department that
	6997	+	9 assists victims of the disaster who reside within the
	6998	+	10 declared disaster area.
	6999	+	11 (31) Beginning with taxable years ending on or after
	7000	+	12 December 31, 1995 and ending with taxable years ending on
	7001	+	13 or before December 31, 2004, personal property that is
	7002	+	14 used in the performance of infrastructure repairs in this
	7003	+	15 State, including but not limited to municipal roads and
	7004	+	16 streets, access roads, bridges, sidewalks, waste disposal
	7005	+	17 systems, water and sewer line extensions, water
	7006	+	18 distribution and purification facilities, storm water
	7007	+	19 drainage and retention facilities, and sewage treatment
	7008	+	20 facilities, resulting from a State or federally declared
	7009	+	21 disaster in Illinois or bordering Illinois when such
	7010	+	22 repairs are initiated on facilities located in the
	7011	+	23 declared disaster area within 6 months after the disaster.
	7012	+	24 (32) Beginning July 1, 1999, game or game birds sold
	7013	+	25 at a "game breeding and hunting preserve area" as that
	7014	+	26 term is used in the Wildlife Code. This paragraph is
	7015	+
	7016	+
	7017	+
	7018	+
	7019	+
	7020	+	SB1963 Enrolled - 196 - LRB103 25648 HLH 51997 b
	7021	+
	7022	+
	7023	+	SB1963 Enrolled- 197 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 197 - LRB103 25648 HLH 51997 b
	7024	+	SB1963 Enrolled - 197 - LRB103 25648 HLH 51997 b
	7025	+	1 exempt from the provisions of Section 2-70.
	7026	+	2 (33) A motor vehicle, as that term is defined in
	7027	+	3 Section 1-146 of the Illinois Vehicle Code, that is
	7028	+	4 donated to a corporation, limited liability company,
	7029	+	5 society, association, foundation, or institution that is
	7030	+	6 determined by the Department to be organized and operated
	7031	+	7 exclusively for educational purposes. For purposes of this
	7032	+	8 exemption, "a corporation, limited liability company,
	7033	+	9 society, association, foundation, or institution organized
	7034	+	10 and operated exclusively for educational purposes" means
	7035	+	11 all tax-supported public schools, private schools that
	7036	+	12 offer systematic instruction in useful branches of
	7037	+	13 learning by methods common to public schools and that
	7038	+	14 compare favorably in their scope and intensity with the
	7039	+	15 course of study presented in tax-supported schools, and
	7040	+	16 vocational or technical schools or institutes organized
	7041	+	17 and operated exclusively to provide a course of study of
	7042	+	18 not less than 6 weeks duration and designed to prepare
	7043	+	19 individuals to follow a trade or to pursue a manual,
	7044	+	20 technical, mechanical, industrial, business, or commercial
	7045	+	21 occupation.
	7046	+	22 (34) Beginning January 1, 2000, personal property,
	7047	+	23 including food, purchased through fundraising events for
	7048	+	24 the benefit of a public or private elementary or secondary
	7049	+	25 school, a group of those schools, or one or more school
	7050	+	26 districts if the events are sponsored by an entity
	7051	+
	7052	+
	7053	+
	7054	+
	7055	+
	7056	+	SB1963 Enrolled - 197 - LRB103 25648 HLH 51997 b
	7057	+
	7058	+
	7059	+	SB1963 Enrolled- 198 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 198 - LRB103 25648 HLH 51997 b
	7060	+	SB1963 Enrolled - 198 - LRB103 25648 HLH 51997 b
	7061	+	1 recognized by the school district that consists primarily
	7062	+	2 of volunteers and includes parents and teachers of the
	7063	+	3 school children. This paragraph does not apply to
	7064	+	4 fundraising events (i) for the benefit of private home
	7065	+	5 instruction or (ii) for which the fundraising entity
	7066	+	6 purchases the personal property sold at the events from
	7067	+	7 another individual or entity that sold the property for
	7068	+	8 the purpose of resale by the fundraising entity and that
	7069	+	9 profits from the sale to the fundraising entity. This
	7070	+	10 paragraph is exempt from the provisions of Section 2-70.
	7071	+	11 (35) Beginning January 1, 2000 and through December
	7072	+	12 31, 2001, new or used automatic vending machines that
	7073	+	13 prepare and serve hot food and beverages, including
	7074	+	14 coffee, soup, and other items, and replacement parts for
	7075	+	15 these machines. Beginning January 1, 2002 and through June
	7076	+	16 30, 2003, machines and parts for machines used in
	7077	+	17 commercial, coin-operated amusement and vending business
	7078	+	18 if a use or occupation tax is paid on the gross receipts
	7079	+	19 derived from the use of the commercial, coin-operated
	7080	+	20 amusement and vending machines. This paragraph is exempt
	7081	+	21 from the provisions of Section 2-70.
	7082	+	22 (35-5) Beginning August 23, 2001 and through June 30,
	7083	+	23 2016, food for human consumption that is to be consumed
	7084	+	24 off the premises where it is sold (other than alcoholic
	7085	+	25 beverages, soft drinks, and food that has been prepared
	7086	+	26 for immediate consumption) and prescription and
	7087	+
	7088	+
	7089	+
	7090	+
	7091	+
	7092	+	SB1963 Enrolled - 198 - LRB103 25648 HLH 51997 b
	7093	+
	7094	+
	7095	+	SB1963 Enrolled- 199 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 199 - LRB103 25648 HLH 51997 b
	7096	+	SB1963 Enrolled - 199 - LRB103 25648 HLH 51997 b
	7097	+	1 nonprescription medicines, drugs, medical appliances, and
	7098	+	2 insulin, urine testing materials, syringes, and needles
	7099	+	3 used by diabetics, for human use, when purchased for use
	7100	+	4 by a person receiving medical assistance under Article V
	7101	+	5 of the Illinois Public Aid Code who resides in a licensed
	7102	+	6 long-term care facility, as defined in the Nursing Home
	7103	+	7 Care Act, or a licensed facility as defined in the ID/DD
	7104	+	8 Community Care Act, the MC/DD Act, or the Specialized
	7105	+	9 Mental Health Rehabilitation Act of 2013.
	7106	+	10 (36) Beginning August 2, 2001, computers and
	7107	+	11 communications equipment utilized for any hospital purpose
	7108	+	12 and equipment used in the diagnosis, analysis, or
	7109	+	13 treatment of hospital patients sold to a lessor who leases
	7110	+	14 the equipment, under a lease of one year or longer
	7111	+	15 executed or in effect at the time of the purchase, to a
	7112	+	16 hospital that has been issued an active tax exemption
	7113	+	17 identification number by the Department under Section 1g
	7114	+	18 of this Act. This paragraph is exempt from the provisions
	7115	+	19 of Section 2-70.
	7116	+	20 (37) Beginning August 2, 2001, personal property sold
	7117	+	21 to a lessor who leases the property, under a lease of one
	7118	+	22 year or longer executed or in effect at the time of the
	7119	+	23 purchase, to a governmental body that has been issued an
	7120	+	24 active tax exemption identification number by the
	7121	+	25 Department under Section 1g of this Act. This paragraph is
	7122	+	26 exempt from the provisions of Section 2-70.
	7123	+
	7124	+
	7125	+
	7126	+
	7127	+
	7128	+	SB1963 Enrolled - 199 - LRB103 25648 HLH 51997 b
	7129	+
	7130	+
	7131	+	SB1963 Enrolled- 200 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 200 - LRB103 25648 HLH 51997 b
	7132	+	SB1963 Enrolled - 200 - LRB103 25648 HLH 51997 b
	7133	+	1 (38) Beginning on January 1, 2002 and through June 30,
	7134	+	2 2016, tangible personal property purchased from an
	7135	+	3 Illinois retailer by a taxpayer engaged in centralized
	7136	+	4 purchasing activities in Illinois who will, upon receipt
	7137	+	5 of the property in Illinois, temporarily store the
	7138	+	6 property in Illinois (i) for the purpose of subsequently
	7139	+	7 transporting it outside this State for use or consumption
	7140	+	8 thereafter solely outside this State or (ii) for the
	7141	+	9 purpose of being processed, fabricated, or manufactured
	7142	+	10 into, attached to, or incorporated into other tangible
	7143	+	11 personal property to be transported outside this State and
	7144	+	12 thereafter used or consumed solely outside this State. The
	7145	+	13 Director of Revenue shall, pursuant to rules adopted in
	7146	+	14 accordance with the Illinois Administrative Procedure Act,
	7147	+	15 issue a permit to any taxpayer in good standing with the
	7148	+	16 Department who is eligible for the exemption under this
	7149	+	17 paragraph (38). The permit issued under this paragraph
	7150	+	18 (38) shall authorize the holder, to the extent and in the
	7151	+	19 manner specified in the rules adopted under this Act, to
	7152	+	20 purchase tangible personal property from a retailer exempt
	7153	+	21 from the taxes imposed by this Act. Taxpayers shall
	7154	+	22 maintain all necessary books and records to substantiate
	7155	+	23 the use and consumption of all such tangible personal
	7156	+	24 property outside of the State of Illinois.
	7157	+	25 (39) Beginning January 1, 2008, tangible personal
	7158	+	26 property used in the construction or maintenance of a
	7159	+
	7160	+
	7161	+
	7162	+
	7163	+
	7164	+	SB1963 Enrolled - 200 - LRB103 25648 HLH 51997 b
	7165	+
	7166	+
	7167	+	SB1963 Enrolled- 201 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 201 - LRB103 25648 HLH 51997 b
	7168	+	SB1963 Enrolled - 201 - LRB103 25648 HLH 51997 b
	7169	+	1 community water supply, as defined under Section 3.145 of
	7170	+	2 the Environmental Protection Act, that is operated by a
	7171	+	3 not-for-profit corporation that holds a valid water supply
	7172	+	4 permit issued under Title IV of the Environmental
	7173	+	5 Protection Act. This paragraph is exempt from the
	7174	+	6 provisions of Section 2-70.
	7175	+	7 (40) Beginning January 1, 2010 and continuing through
	7176	+	8 December 31, 2024, materials, parts, equipment,
	7177	+	9 components, and furnishings incorporated into or upon an
	7178	+	10 aircraft as part of the modification, refurbishment,
	7179	+	11 completion, replacement, repair, or maintenance of the
	7180	+	12 aircraft. This exemption includes consumable supplies used
	7181	+	13 in the modification, refurbishment, completion,
	7182	+	14 replacement, repair, and maintenance of aircraft, but
	7183	+	15 excludes any materials, parts, equipment, components, and
	7184	+	16 consumable supplies used in the modification, replacement,
	7185	+	17 repair, and maintenance of aircraft engines or power
	7186	+	18 plants, whether such engines or power plants are installed
	7187	+	19 or uninstalled upon any such aircraft. "Consumable
	7188	+	20 supplies" include, but are not limited to, adhesive, tape,
	7189	+	21 sandpaper, general purpose lubricants, cleaning solution,
	7190	+	22 latex gloves, and protective films. This exemption applies
	7191	+	23 only to the sale of qualifying tangible personal property
	7192	+	24 to persons who modify, refurbish, complete, replace, or
	7193	+	25 maintain an aircraft and who (i) hold an Air Agency
	7194	+	26 Certificate and are empowered to operate an approved
	7195	+
	7196	+
	7197	+
	7198	+
	7199	+
	7200	+	SB1963 Enrolled - 201 - LRB103 25648 HLH 51997 b
	7201	+
	7202	+
	7203	+	SB1963 Enrolled- 202 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 202 - LRB103 25648 HLH 51997 b
	7204	+	SB1963 Enrolled - 202 - LRB103 25648 HLH 51997 b
	7205	+	1 repair station by the Federal Aviation Administration,
	7206	+	2 (ii) have a Class IV Rating, and (iii) conduct operations
	7207	+	3 in accordance with Part 145 of the Federal Aviation
	7208	+	4 Regulations. The exemption does not include aircraft
	7209	+	5 operated by a commercial air carrier providing scheduled
	7210	+	6 passenger air service pursuant to authority issued under
	7211	+	7 Part 121 or Part 129 of the Federal Aviation Regulations.
	7212	+	8 The changes made to this paragraph (40) by Public Act
	7213	+	9 98-534 are declarative of existing law. It is the intent
	7214	+	10 of the General Assembly that the exemption under this
	7215	+	11 paragraph (40) applies continuously from January 1, 2010
	7216	+	12 through December 31, 2024; however, no claim for credit or
	7217	+	13 refund is allowed for taxes paid as a result of the
	7218	+	14 disallowance of this exemption on or after January 1, 2015
	7219	+	15 and prior to February 5, 2020 (the effective date of
	7220	+	16 Public Act 101-629) this amendatory Act of the 101st
	7221	+	17 General Assembly.
	7222	+	18 (41) Tangible personal property sold to a
	7223	+	19 public-facilities corporation, as described in Section
	7224	+	20 11-65-10 of the Illinois Municipal Code, for purposes of
	7225	+	21 constructing or furnishing a municipal convention hall,
	7226	+	22 but only if the legal title to the municipal convention
	7227	+	23 hall is transferred to the municipality without any
	7228	+	24 further consideration by or on behalf of the municipality
	7229	+	25 at the time of the completion of the municipal convention
	7230	+	26 hall or upon the retirement or redemption of any bonds or
	7231	+
	7232	+
	7233	+
	7234	+
	7235	+
	7236	+	SB1963 Enrolled - 202 - LRB103 25648 HLH 51997 b
	7237	+
	7238	+
	7239	+	SB1963 Enrolled- 203 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 203 - LRB103 25648 HLH 51997 b
	7240	+	SB1963 Enrolled - 203 - LRB103 25648 HLH 51997 b
	7241	+	1 other debt instruments issued by the public-facilities
	7242	+	2 corporation in connection with the development of the
	7243	+	3 municipal convention hall. This exemption includes
	7244	+	4 existing public-facilities corporations as provided in
	7245	+	5 Section 11-65-25 of the Illinois Municipal Code. This
	7246	+	6 paragraph is exempt from the provisions of Section 2-70.
	7247	+	7 (42) Beginning January 1, 2017 and through December
	7248	+	8 31, 2026, menstrual pads, tampons, and menstrual cups.
	7249	+	9 (43) Merchandise that is subject to the Rental
	7250	+	10 Purchase Agreement Occupation and Use Tax. The purchaser
	7251	+	11 must certify that the item is purchased to be rented
	7252	+	12 subject to a rental purchase agreement, as defined in the
	7253	+	13 Rental Purchase Agreement Act, and provide proof of
	7254	+	14 registration under the Rental Purchase Agreement
	7255	+	15 Occupation and Use Tax Act. This paragraph is exempt from
	7256	+	16 the provisions of Section 2-70.
	7257	+	17 (44) Qualified tangible personal property used in the
	7258	+	18 construction or operation of a data center that has been
	7259	+	19 granted a certificate of exemption by the Department of
	7260	+	20 Commerce and Economic Opportunity, whether that tangible
	7261	+	21 personal property is purchased by the owner, operator, or
	7262	+	22 tenant of the data center or by a contractor or
	7263	+	23 subcontractor of the owner, operator, or tenant. Data
	7264	+	24 centers that would have qualified for a certificate of
	7265	+	25 exemption prior to January 1, 2020 had Public Act 101-31
	7266	+	26 this amendatory Act of the 101st General Assembly been in
	7267	+
	7268	+
	7269	+
	7270	+
	7271	+
	7272	+	SB1963 Enrolled - 203 - LRB103 25648 HLH 51997 b
	7273	+
	7274	+
	7275	+	SB1963 Enrolled- 204 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 204 - LRB103 25648 HLH 51997 b
	7276	+	SB1963 Enrolled - 204 - LRB103 25648 HLH 51997 b
	7277	+	1 effect, may apply for and obtain an exemption for
	7278	+	2 subsequent purchases of computer equipment or enabling
	7279	+	3 software purchased or leased to upgrade, supplement, or
	7280	+	4 replace computer equipment or enabling software purchased
	7281	+	5 or leased in the original investment that would have
	7282	+	6 qualified.
	7283	+	7 The Department of Commerce and Economic Opportunity
	7284	+	8 shall grant a certificate of exemption under this item
	7285	+	9 (44) to qualified data centers as defined by Section
	7286	+	10 605-1025 of the Department of Commerce and Economic
	7287	+	11 Opportunity Law of the Civil Administrative Code of
	7288	+	12 Illinois.
	7289	+	13 For the purposes of this item (44):
	7290	+	14 "Data center" means a building or a series of
	7291	+	15 buildings rehabilitated or constructed to house
	7292	+	16 working servers in one physical location or multiple
	7293	+	17 sites within the State of Illinois.
	7294	+	18 "Qualified tangible personal property" means:
	7295	+	19 electrical systems and equipment; climate control and
	7296	+	20 chilling equipment and systems; mechanical systems and
	7297	+	21 equipment; monitoring and secure systems; emergency
	7298	+	22 generators; hardware; computers; servers; data storage
	7299	+	23 devices; network connectivity equipment; racks;
	7300	+	24 cabinets; telecommunications cabling infrastructure;
	7301	+	25 raised floor systems; peripheral components or
	7302	+	26 systems; software; mechanical, electrical, or plumbing
	7303	+
	7304	+
	7305	+
	7306	+
	7307	+
	7308	+	SB1963 Enrolled - 204 - LRB103 25648 HLH 51997 b
	7309	+
	7310	+
	7311	+	SB1963 Enrolled- 205 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 205 - LRB103 25648 HLH 51997 b
	7312	+	SB1963 Enrolled - 205 - LRB103 25648 HLH 51997 b
	7313	+	1 systems; battery systems; cooling systems and towers;
	7314	+	2 temperature control systems; other cabling; and other
	7315	+	3 data center infrastructure equipment and systems
	7316	+	4 necessary to operate qualified tangible personal
	7317	+	5 property, including fixtures; and component parts of
	7318	+	6 any of the foregoing, including installation,
	7319	+	7 maintenance, repair, refurbishment, and replacement of
	7320	+	8 qualified tangible personal property to generate,
	7321	+	9 transform, transmit, distribute, or manage electricity
	7322	+	10 necessary to operate qualified tangible personal
	7323	+	11 property; and all other tangible personal property
	7324	+	12 that is essential to the operations of a computer data
	7325	+	13 center. The term "qualified tangible personal
	7326	+	14 property" also includes building materials physically
	7327	+	15 incorporated into the qualifying data center. To
	7328	+	16 document the exemption allowed under this Section, the
	7329	+	17 retailer must obtain from the purchaser a copy of the
	7330	+	18 certificate of eligibility issued by the Department of
	7331	+	19 Commerce and Economic Opportunity.
	7332	+	20 This item (44) is exempt from the provisions of
	7333	+	21 Section 2-70.
	7334	+	22 (45) Beginning January 1, 2020 and through December
	7335	+	23 31, 2020, sales of tangible personal property made by a
	7336	+	24 marketplace seller over a marketplace for which tax is due
	7337	+	25 under this Act but for which use tax has been collected and
	7338	+	26 remitted to the Department by a marketplace facilitator
	7339	+
	7340	+
	7341	+
	7342	+
	7343	+
	7344	+	SB1963 Enrolled - 205 - LRB103 25648 HLH 51997 b
	7345	+
	7346	+
	7347	+	SB1963 Enrolled- 206 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 206 - LRB103 25648 HLH 51997 b
	7348	+	SB1963 Enrolled - 206 - LRB103 25648 HLH 51997 b
	7349	+	1 under Section 2d of the Use Tax Act are exempt from tax
	7350	+	2 under this Act. A marketplace seller claiming this
	7351	+	3 exemption shall maintain books and records demonstrating
	7352	+	4 that the use tax on such sales has been collected and
	7353	+	5 remitted by a marketplace facilitator. Marketplace sellers
	7354	+	6 that have properly remitted tax under this Act on such
	7355	+	7 sales may file a claim for credit as provided in Section 6
	7356	+	8 of this Act. No claim is allowed, however, for such taxes
	7357	+	9 for which a credit or refund has been issued to the
	7358	+	10 marketplace facilitator under the Use Tax Act, or for
	7359	+	11 which the marketplace facilitator has filed a claim for
	7360	+	12 credit or refund under the Use Tax Act.
	7361	+	13 (46) Beginning July 1, 2022, breast pumps, breast pump
	7362	+	14 collection and storage supplies, and breast pump kits.
	7363	+	15 This item (46) is exempt from the provisions of Section
	7364	+	16 2-70. As used in this item (46):
	7365	+	17 "Breast pump" means an electrically controlled or
	7366	+	18 manually controlled pump device designed or marketed to be
	7367	+	19 used to express milk from a human breast during lactation,
	7368	+	20 including the pump device and any battery, AC adapter, or
	7369	+	21 other power supply unit that is used to power the pump
	7370	+	22 device and is packaged and sold with the pump device at the
	7371	+	23 time of sale.
	7372	+	24 "Breast pump collection and storage supplies" means
	7373	+	25 items of tangible personal property designed or marketed
	7374	+	26 to be used in conjunction with a breast pump to collect
	7375	+
	7376	+
	7377	+
	7378	+
	7379	+
	7380	+	SB1963 Enrolled - 206 - LRB103 25648 HLH 51997 b
	7381	+
	7382	+
	7383	+	SB1963 Enrolled- 207 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 207 - LRB103 25648 HLH 51997 b
	7384	+	SB1963 Enrolled - 207 - LRB103 25648 HLH 51997 b
	7385	+	1 milk expressed from a human breast and to store collected
	7386	+	2 milk until it is ready for consumption.
	7387	+	3 "Breast pump collection and storage supplies"
	7388	+	4 includes, but is not limited to: breast shields and breast
	7389	+	5 shield connectors; breast pump tubes and tubing adapters;
	7390	+	6 breast pump valves and membranes; backflow protectors and
	7391	+	7 backflow protector adaptors; bottles and bottle caps
	7392	+	8 specific to the operation of the breast pump; and breast
	7393	+	9 milk storage bags.
	7394	+	10 "Breast pump collection and storage supplies" does not
	7395	+	11 include: (1) bottles and bottle caps not specific to the
	7396	+	12 operation of the breast pump; (2) breast pump travel bags
	7397	+	13 and other similar carrying accessories, including ice
	7398	+	14 packs, labels, and other similar products; (3) breast pump
	7399	+	15 cleaning supplies; (4) nursing bras, bra pads, breast
	7400	+	16 shells, and other similar products; and (5) creams,
	7401	+	17 ointments, and other similar products that relieve
	7402	+	18 breastfeeding-related symptoms or conditions of the
	7403	+	19 breasts or nipples, unless sold as part of a breast pump
	7404	+	20 kit that is pre-packaged by the breast pump manufacturer
	7405	+	21 or distributor.
	7406	+	22 "Breast pump kit" means a kit that: (1) contains no
	7407	+	23 more than a breast pump, breast pump collection and
	7408	+	24 storage supplies, a rechargeable battery for operating the
	7409	+	25 breast pump, a breastmilk cooler, bottle stands, ice
	7410	+	26 packs, and a breast pump carrying case; and (2) is
	7411	+
	7412	+
	7413	+
	7414	+
	7415	+
	7416	+	SB1963 Enrolled - 207 - LRB103 25648 HLH 51997 b
	7417	+
	7418	+
	7419	+	SB1963 Enrolled- 208 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 208 - LRB103 25648 HLH 51997 b
	7420	+	SB1963 Enrolled - 208 - LRB103 25648 HLH 51997 b
	7421	+	1 pre-packaged as a breast pump kit by the breast pump
	7422	+	2 manufacturer or distributor.
	7423	+	3 (47) (46) Tangible personal property sold by or on
	7424	+	4 behalf of the State Treasurer pursuant to the Revised
	7425	+	5 Uniform Unclaimed Property Act. This item (47) (46) is
	7426	+	6 exempt from the provisions of Section 2-70.
	7427	+	7 (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
	7428	+	8 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
	7429	+	9 8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
	7430	+	10 102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
	7431	+	11 eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
	7432	+	12 ARTICLE 20. PARKING EXCISE TAX
	7433	+	13 Section 20-5. The Parking Excise Tax Act is amended by
	7434	+	14 changing Sections 10-5, 10-10, 10-15, 10-25, 10-30, 10-35,
	7435	+	15 10-45, and 10-50 as follows:
	7436	+	16 (35 ILCS 525/10-5)
	7437	+	17 (Text of Section before amendment by P.A. 102-700)
	7438	+	18 Sec. 10-5. Definitions.
	7439	+	19 "Booking intermediary" means any person or entity that
	7440	+	20 facilitates the processing and fulfillment of reservation
	7441	+	21 transactions between an operator and a person or entity
	7442	+	22 desiring parking in a parking lot or garage of that operator.
	7443	+	23 "Charge or fee paid for parking" means the gross amount of
	7444	+
	7445	+
	7446	+
	7447	+
	7448	+
	7449	+	SB1963 Enrolled - 208 - LRB103 25648 HLH 51997 b
	7450	+
	7451	+
	7452	+	SB1963 Enrolled- 209 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 209 - LRB103 25648 HLH 51997 b
	7453	+	SB1963 Enrolled - 209 - LRB103 25648 HLH 51997 b
	7454	+	1 consideration for the use or privilege of parking a motor
	7455	+	2 vehicle in or upon any parking lot or garage in the State,
	7456	+	3 collected by an operator and valued in money, whether received
	7457	+	4 in money or otherwise, including cash, credits, property, and
	7458	+	5 services, determined without any deduction for costs or
	7459	+	6 expenses, but not including charges that are added to the
	7460	+	7 charge or fee on account of the tax imposed by this Act or on
	7461	+	8 account of any other tax imposed on the charge or fee. "Charge
	7462	+	9 or fee paid for parking" excludes separately stated charges
	7463	+	10 not for the use or privilege or parking and excludes amounts
	7464	+	11 retained by or paid to a booking intermediary for services
	7465	+	12 provided by the booking intermediary. If any separately stated
	7466	+	13 charge is not optional, it shall be presumed that it is part of
	7467	+	14 the charge for the use or privilege or parking.
	7468	+	15 "Department" means the Department of Revenue.
	7469	+	16 "Operator" means any person who engages in the business of
	7470	+	17 operating a parking area or garage, or who, directly or
	7471	+	18 through an agreement or arrangement with another party,
	7472	+	19 collects the consideration for parking or storage of motor
	7473	+	20 vehicles, recreational vehicles, or other self-propelled
	7474	+	21 vehicles, at that parking place. This includes, but is not
	7475	+	22 limited to, any facilitator or aggregator that collects from
	7476	+	23 the purchaser the charge or fee paid for parking. "Operator"
	7477	+	24 does not include a bank, credit card company, payment
	7478	+	25 processor, booking intermediary, or person whose involvement
	7479	+	26 is limited to performing functions that are similar to those
	7480	+
	7481	+
	7482	+
	7483	+
	7484	+
	7485	+	SB1963 Enrolled - 209 - LRB103 25648 HLH 51997 b
	7486	+
	7487	+
	7488	+	SB1963 Enrolled- 210 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 210 - LRB103 25648 HLH 51997 b
	7489	+	SB1963 Enrolled - 210 - LRB103 25648 HLH 51997 b
	7490	+	1 performed by a bank, credit card company, payment processor,
	7491	+	2 or booking intermediary.
	7492	+	3 "Parking area or garage" means any real estate, building,
	7493	+	4 structure, premises, enclosure or other place, whether
	7494	+	5 enclosed or not, except a public way, within the State, where
	7495	+	6 motor vehicles, recreational vehicles, or other self-propelled
	7496	+	7 vehicles, are stored, housed or parked for hire, charge, fee
	7497	+	8 or other valuable consideration in a condition ready for use,
	7498	+	9 or where rent or compensation is paid to the owner, manager,
	7499	+	10 operator or lessee of the premises for the housing, storing,
	7500	+	11 sheltering, keeping or maintaining motor vehicles,
	7501	+	12 recreational vehicles, or other self-propelled vehicles.
	7502	+	13 "Parking area or garage" includes any parking area or garage,
	7503	+	14 whether the vehicle is parked by the owner of the vehicle or by
	7504	+	15 the operator or an attendant.
	7505	+	16 "Person" means any natural individual, firm, trust,
	7506	+	17 estate, partnership, association, joint stock company, joint
	7507	+	18 venture, corporation, limited liability company, or a
	7508	+	19 receiver, trustee, guardian, or other representative appointed
	7509	+	20 by order of any court.
	7510	+	21 "Purchase price" means the consideration paid for the
	7511	+	22 purchase of a parking space in a parking area or garage, valued
	7512	+	23 in money, whether received in money or otherwise, including
	7513	+	24 cash, gift cards, credits, and property, and shall be
	7514	+	25 determined without any deduction on account of the cost of
	7515	+	26 materials used, labor or service costs, or any other expense
	7516	+
	7517	+
	7518	+
	7519	+
	7520	+
	7521	+	SB1963 Enrolled - 210 - LRB103 25648 HLH 51997 b
	7522	+
	7523	+
	7524	+	SB1963 Enrolled- 211 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 211 - LRB103 25648 HLH 51997 b
	7525	+	SB1963 Enrolled - 211 - LRB103 25648 HLH 51997 b
	7526	+	1 whatsoever.
	7527	+	2 "Purchase price" includes any and all charges that the
	7528	+	3 recipient pays related to or incidental to obtaining the use
	7529	+	4 or privilege of using a parking space in a parking area or
	7530	+	5 garage, including but not limited to any and all related
	7531	+	6 markups, service fees, convenience fees, facilitation fees,
	7532	+	7 cancellation fees, overtime fees, or other such charges,
	7533	+	8 regardless of terminology. However, "purchase price" shall not
	7534	+	9 include consideration paid for:
	7535	+	10 (1) optional, separately stated charges not for the
	7536	+	11 use or privilege of using a parking space in the parking
	7537	+	12 area or garage;
	7538	+	13 (2) any charge for a dishonored check;
	7539	+	14 (3) any finance or credit charge, penalty or charge
	7540	+	15 for delayed payment, or discount for prompt payment;
	7541	+	16 (4) any purchase by a purchaser if the operator is
	7542	+	17 prohibited by federal or State Constitution, treaty,
	7543	+	18 convention, statute or court decision from collecting the
	7544	+	19 tax from such purchaser;
	7545	+	20 (5) the isolated or occasional sale of parking spaces
	7546	+	21 subject to tax under this Act by a person who does not hold
	7547	+	22 himself out as being engaged (or who does not habitually
	7548	+	23 engage) in selling of parking spaces; and
	7549	+	24 (6) any amounts added to a purchaser's bills because
	7550	+	25 of charges made pursuant to the tax imposed by this Act. If
	7551	+	26 credit is extended, then the amount thereof shall be
	7552	+
	7553	+
	7554	+
	7555	+
	7556	+
	7557	+	SB1963 Enrolled - 211 - LRB103 25648 HLH 51997 b
	7558	+
	7559	+
	7560	+	SB1963 Enrolled- 212 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 212 - LRB103 25648 HLH 51997 b
	7561	+	SB1963 Enrolled - 212 - LRB103 25648 HLH 51997 b
	7562	+	1 included only as and when payments are made.
	7563	+	2 "Purchaser" means any person who acquires a parking space
	7564	+	3 in a parking area or garage for use for valuable
	7565	+	4 consideration.
	7566	+	5 "Use" means the exercise by any person of any right or
	7567	+	6 power over, or the enjoyment of, a parking space in a parking
	7568	+	7 area or garage subject to tax under this Act.
	7569	+	8 (Source: P.A. 101-31, eff. 6-28-19.)
	7570	+	9 (Text of Section after amendment by P.A. 102-700)
	7571	+	10 Sec. 10-5. Definitions. As used in this Act:
	7572	+	11 "Booking intermediary" means any person or entity that
	7573	+	12 facilitates the processing and fulfillment of reservation
	7574	+	13 transactions between an operator and a person or entity
	7575	+	14 desiring parking in a parking lot or garage of that operator.
	7576	+	15 "Department" means the Department of Revenue.
	7577	+	16 "Operator" means any person who engages in the business of
	7578	+	17 operating a parking area or garage, or who, directly or
	7579	+	18 through an agreement or arrangement with another party,
	7580	+	19 collects the consideration for parking or storage of motor
	7581	+	20 vehicles, recreational vehicles, or other self-propelled
	7582	+	21 vehicles, at that parking place. This includes, but is not
	7583	+	22 limited to, any facilitator or aggregator that collects the
	7584	+	23 purchase price from the purchaser. "Operator" does not include
	7585	+	24 a bank, credit card company, payment processor, booking
	7586	+	25 intermediary (except to the extent a booking intermediary is
	7587	+
	7588	+
	7589	+
	7590	+
	7591	+
	7592	+	SB1963 Enrolled - 212 - LRB103 25648 HLH 51997 b
	7593	+
	7594	+
	7595	+	SB1963 Enrolled- 213 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 213 - LRB103 25648 HLH 51997 b
	7596	+	SB1963 Enrolled - 213 - LRB103 25648 HLH 51997 b
	7597	+	1 required to be registered under Section 10-30 or as otherwise
	7598	+	2 provided in this Act), or person whose involvement is limited
	7599	+	3 to performing functions that are similar to those performed by
	7600	+	4 a bank, credit card company, or payment processor, or booking
	7601	+	5 intermediary.
	7602	+	6 "Parking area or garage" means any real estate, building,
	7603	+	7 structure, premises, enclosure or other place, whether
	7604	+	8 enclosed or not, except a public way, within the State, where
	7605	+	9 motor vehicles, recreational vehicles, or other self-propelled
	7606	+	10 vehicles, are stored, housed or parked for hire, charge, fee
	7607	+	11 or other valuable consideration in a condition ready for use,
	7608	+	12 or where rent or compensation is paid to the owner, manager,
	7609	+	13 operator or lessee of the premises for the housing, storing,
	7610	+	14 sheltering, keeping or maintaining motor vehicles,
	7611	+	15 recreational vehicles, or other self-propelled vehicles.
	7612	+	16 "Parking area or garage" includes any parking area or garage,
	7613	+	17 whether the vehicle is parked by the owner of the vehicle or by
	7614	+	18 the operator or an attendant.
	7615	+	19 "Person" means any natural individual, firm, trust,
	7616	+	20 estate, partnership, association, joint stock company, joint
	7617	+	21 venture, corporation, limited liability company, or a
	7618	+	22 receiver, trustee, guardian, or other representative appointed
	7619	+	23 by order of any court.
	7620	+	24 "Purchase price" means the consideration paid for the
	7621	+	25 purchase of a parking space in a parking area or garage, valued
	7622	+	26 in money, whether received in money or otherwise, including
	7623	+
	7624	+
	7625	+
	7626	+
	7627	+
	7628	+	SB1963 Enrolled - 213 - LRB103 25648 HLH 51997 b
	7629	+
	7630	+
	7631	+	SB1963 Enrolled- 214 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 214 - LRB103 25648 HLH 51997 b
	7632	+	SB1963 Enrolled - 214 - LRB103 25648 HLH 51997 b
	7633	+	1 cash, gift cards, credits, and property, and shall be
	7634	+	2 determined without any deduction on account of the cost of
	7635	+	3 materials used, labor or service costs, or any other expense
	7636	+	4 whatsoever.
	7637	+	5 "Purchase price" includes any and all charges that the
	7638	+	6 recipient pays related to or incidental to obtaining the use
	7639	+	7 or privilege of using a parking space in a parking area or
	7640	+	8 garage, including but not limited to any and all related
	7641	+	9 markups, service fees, convenience fees, facilitation fees,
	7642	+	10 cancellation fees, overtime fees, or other such charges,
	7643	+	11 regardless of terminology. However, "purchase price" shall not
	7644	+	12 include consideration paid for:
	7645	+	13 (1) optional, separately stated charges not for the
	7646	+	14 use or privilege of using a parking space in the parking
	7647	+	15 area or garage;
	7648	+	16 (2) any charge for a dishonored check;
	7649	+	17 (3) any finance or credit charge, penalty or charge
	7650	+	18 for delayed payment, or discount for prompt payment;
	7651	+	19 (4) any purchase by a purchaser if the operator is
	7652	+	20 prohibited by federal or State Constitution, treaty,
	7653	+	21 convention, statute or court decision from collecting the
	7654	+	22 tax from such purchaser;
	7655	+	23 (5) the isolated or occasional sale of parking spaces
	7656	+	24 subject to tax under this Act by a person who does not hold
	7657	+	25 himself out as being engaged (or who does not habitually
	7658	+	26 engage) in selling of parking spaces; and
	7659	+
	7660	+
	7661	+
	7662	+
	7663	+
	7664	+	SB1963 Enrolled - 214 - LRB103 25648 HLH 51997 b
	7665	+
	7666	+
	7667	+	SB1963 Enrolled- 215 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 215 - LRB103 25648 HLH 51997 b
	7668	+	SB1963 Enrolled - 215 - LRB103 25648 HLH 51997 b
	7669	+	1 (6) any amounts added to a purchaser's bills because
	7670	+	2 of charges made pursuant to the tax imposed by this Act. If
	7671	+	3 credit is extended, then the amount thereof shall be
	7672	+	4 included only as and when payments are made.
	7673	+	5 "Purchaser" means any person who acquires a parking space
	7674	+	6 in a parking area or garage for use for valuable
	7675	+	7 consideration.
	7676	+	8 "Use" means the exercise by any person of any right or
	7677	+	9 power over, or the enjoyment of, a parking space in a parking
	7678	+	10 area or garage subject to tax under this Act.
	7679	+	11 (Source: P.A. 101-31, eff. 6-28-19; 102-700, eff. 7-1-23.)
	7680	+	12 (35 ILCS 525/10-10)
	7681	+	13 Sec. 10-10. Imposition of tax; calculation of tax.
	7682	+	14 (a) Beginning on January 1, 2020, a tax is imposed on the
	7683	+	15 privilege of using in this State a parking space in a parking
	7684	+	16 area or garage for the use of parking one or more motor
	7685	+	17 vehicles, recreational vehicles, or other self-propelled
	7686	+	18 vehicles, at the rate of:
	7687	+	19 (1) 6% of the purchase price for a parking space paid
	7688	+	20 for on an hourly, daily, or weekly basis; and
	7689	+	21 (2) 9% of the purchase price for a parking space paid
	7690	+	22 for on a monthly or annual basis.
	7691	+	23 (b) The tax shall be collected from the purchaser by the
	7692	+	24 operator. Notwithstanding the provisions of this subsection,
	7693	+	25 beginning on January 1, 2024, if a booking intermediary
	7694	+
	7695	+
	7696	+
	7697	+
	7698	+
	7699	+	SB1963 Enrolled - 215 - LRB103 25648 HLH 51997 b
	7700	+
	7701	+
	7702	+	SB1963 Enrolled- 216 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 216 - LRB103 25648 HLH 51997 b
	7703	+	SB1963 Enrolled - 216 - LRB103 25648 HLH 51997 b
	7704	+	1 facilitates the processing and fulfillment of the reservation
	7705	+	2 for an operator that is not registered under Section 10-30,
	7706	+	3 then the tax shall be collected on the purchase price from the
	7707	+	4 purchaser by the booking intermediary on behalf of the
	7708	+	5 operator, and the tax shall be remitted to the Department by
	7709	+	6 the booking intermediary. The booking intermediary that
	7710	+	7 facilitates the processing and fulfillment of the reservation
	7711	+	8 for an operator that is not registered under Section 10-30 and
	7712	+	9 the unregistered operator are jointly and severally liable for
	7713	+	10 payment of the tax to the Department.
	7714	+	11 (b-5) Booking intermediaries shall collect the tax on the
	7715	+	12 purchase price paid by purchasers on behalf of registered
	7716	+	13 operators. If a booking intermediary charges a separate
	7717	+	14 service charge that is included in the purchase price, the tax
	7718	+	15 shall be collected on that separate service charge as well,
	7719	+	16 even if the separate service charge is retained by the booking
	7720	+	17 intermediary. Beginning January 1, 2024, booking
	7721	+	18 intermediaries are liable for and shall remit the tax to the
	7722	+	19 Department on any separately stated service fee that the
	7723	+	20 booking intermediary charges to the customer. Operators are
	7724	+	21 liable for the remittance of tax under this Act on the
	7725	+	22 remainder of the purchase price for the transaction. Booking
	7726	+	23 intermediaries and operators are subject to audit on all such
	7727	+	24 sales.
	7728	+	25 (c) An operator that has paid or remitted the tax imposed
	7729	+	26 by this Act to another operator in connection with the same
	7730	+
	7731	+
	7732	+
	7733	+
	7734	+
	7735	+	SB1963 Enrolled - 216 - LRB103 25648 HLH 51997 b
	7736	+
	7737	+
	7738	+	SB1963 Enrolled- 217 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 217 - LRB103 25648 HLH 51997 b
	7739	+	SB1963 Enrolled - 217 - LRB103 25648 HLH 51997 b
	7740	+	1 parking transaction, or the use of the same parking space,
	7741	+	2 that is subject to tax under this Act, shall be entitled to a
	7742	+	3 credit for such tax paid or remitted against the amount of tax
	7743	+	4 owed under this Act, provided that the other operator is
	7744	+	5 registered under this Act. The operator claiming the credit
	7745	+	6 shall have the burden of proving it is entitled to claim a
	7746	+	7 credit.
	7747	+	8 (d) If any operator or booking intermediary erroneously
	7748	+	9 collects tax or collects more from the purchaser than the
	7749	+	10 purchaser's liability for the transaction, the purchaser shall
	7750	+	11 have a legal right to claim a refund of such amount from the
	7751	+	12 operator or booking intermediary. However, if such amount is
	7752	+	13 not refunded to the purchaser for any reason, the operator or
	7753	+	14 booking intermediary is liable to pay such amount to the
	7754	+	15 Department.
	7755	+	16 (e) The tax imposed by this Section is not imposed with
	7756	+	17 respect to any transaction in interstate commerce, to the
	7757	+	18 extent that the transaction may not, under the Constitution
	7758	+	19 and statutes of the United States, be made the subject of
	7759	+	20 taxation by this State.
	7760	+	21 (Source: P.A. 101-31, eff. 6-28-19.)
	7761	+	22 (35 ILCS 525/10-15)
	7762	+	23 Sec. 10-15. Filing of returns and deposit of proceeds. On
	7763	+	24 or before the last day of each calendar month, every operator
	7764	+	25 engaged in the business of providing to purchasers parking
	7765	+
	7766	+
	7767	+
	7768	+
	7769	+
	7770	+	SB1963 Enrolled - 217 - LRB103 25648 HLH 51997 b
	7771	+
	7772	+
	7773	+	SB1963 Enrolled- 218 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 218 - LRB103 25648 HLH 51997 b
	7774	+	SB1963 Enrolled - 218 - LRB103 25648 HLH 51997 b
	7775	+	1 areas and garages in this State during the preceding calendar
	7776	+	2 month and every booking intermediary required to collect tax
	7777	+	3 under Section 10-10 shall file a return with the Department,
	7778	+	4 stating:
	7779	+	5 (1) the name of the operator or booking intermediary;
	7780	+	6 (2) the address of its principal place of business
	7781	+	7 and, if applicable, the address of the principal place of
	7782	+	8 business from which it provides parking areas and garages
	7783	+	9 in this State;
	7784	+	10 (3) the total amount of receipts received by the
	7785	+	11 operator during the preceding calendar month or quarter,
	7786	+	12 as the case may be, from sales of parking spaces to
	7787	+	13 purchasers in parking areas or garages during the
	7788	+	14 preceding calendar month or quarter; the total amount of
	7789	+	15 receipts for separately stated service fees that are
	7790	+	16 charged to the customer by the booking intermediary in
	7791	+	17 connection with the booking intermediary's facilitation of
	7792	+	18 parking spot reservations for an operator during the
	7793	+	19 preceding calendar month or quarter, as the case may be;
	7794	+	20 and, if the return is filed by a booking intermediary that
	7795	+	21 collects the tax under this Act on behalf of an
	7796	+	22 unregistered operator, as provided in Section 10-10, then
	7797	+	23 the total amount of receipts received by the booking
	7798	+	24 intermediary on behalf of the unregistered operator during
	7799	+	25 the preceding calendar month or quarter, as the case may
	7800	+	26 be, from sales of parking spaces to purchasers in parking
	7801	+
	7802	+
	7803	+
	7804	+
	7805	+
	7806	+	SB1963 Enrolled - 218 - LRB103 25648 HLH 51997 b
	7807	+
	7808	+
	7809	+	SB1963 Enrolled- 219 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 219 - LRB103 25648 HLH 51997 b
	7810	+	SB1963 Enrolled - 219 - LRB103 25648 HLH 51997 b
	7811	+	1 areas or garages during the preceding calendar month or
	7812	+	2 quarter;
	7813	+	3 (4) deductions allowed by law;
	7814	+	4 (5) the total amount of receipts received by the
	7815	+	5 operator during the preceding calendar month or quarter
	7816	+	6 upon which the tax was computed; the total amount of
	7817	+	7 receipts for separately stated service fees that are
	7818	+	8 charged to the customer by a booking intermediary in
	7819	+	9 connection with the booking intermediary's facilitation of
	7820	+	10 parking spot reservations for an operator during the
	7821	+	11 preceding calendar month or quarter upon which the tax was
	7822	+	12 computed; and, if the return is filed by a booking
	7823	+	13 intermediary that collects the tax under this Act on
	7824	+	14 behalf of an unregistered operator, as provided in Section
	7825	+	15 10-10, then the total amount of receipts received by the
	7826	+	16 booking intermediary on behalf of the unregistered
	7827	+	17 operator during the preceding calendar month or quarter
	7828	+	18 upon which the tax was computed;
	7829	+	19 (6) the amount of tax due; and
	7830	+	20 (7) such other reasonable information as the
	7831	+	21 Department may require.
	7832	+	22 If an operator or booking intermediary ceases to engage in
	7833	+	23 the kind of business that makes it responsible for filing
	7834	+	24 returns under this Act, then that operator or booking
	7835	+	25 intermediary shall file a final return under this Act with the
	7836	+	26 Department on or before the last day of the month after
	7837	+
	7838	+
	7839	+
	7840	+
	7841	+
	7842	+	SB1963 Enrolled - 219 - LRB103 25648 HLH 51997 b
	7843	+
	7844	+
	7845	+	SB1963 Enrolled- 220 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 220 - LRB103 25648 HLH 51997 b
	7846	+	SB1963 Enrolled - 220 - LRB103 25648 HLH 51997 b
	7847	+	1 discontinuing such business.
	7848	+	2 All returns required to be filed and payments required to
	7849	+	3 be made under this Act shall be by electronic means. Taxpayers
	7850	+	4 who demonstrate hardship in filing or paying electronically
	7851	+	5 may petition the Department to waive the electronic filing or
	7852	+	6 payment requirement, or both. The Department may require a
	7853	+	7 separate return for the tax under this Act or combine the
	7854	+	8 return for the tax under this Act with the return for other
	7855	+	9 taxes. In addition to the requirement to file all returns
	7856	+	10 required to be filed and payments required to be made under
	7857	+	11 this Act by electronic means, booking intermediaries shall
	7858	+	12 file returns in the form and manner required by the
	7859	+	13 Department.
	7860	+	14 If the same person has more than one business registered
	7861	+	15 with the Department under separate registrations under this
	7862	+	16 Act, that person shall not file each return that is due as a
	7863	+	17 single return covering all such registered businesses but
	7864	+	18 shall file separate returns for each such registered business.
	7865	+	19 If the operator or booking intermediary is a corporation,
	7866	+	20 the return filed on behalf of that corporation shall be signed
	7867	+	21 by the president, vice-president, secretary, or treasurer, or
	7868	+	22 by a properly accredited agent of such corporation.
	7869	+	23 The operator or booking intermediary filing the return
	7870	+	24 under this Act shall, at the time of filing the return, pay to
	7871	+	25 the Department the amount of tax imposed by this Act less a
	7872	+	26 discount of 1.75%, not to exceed $1,000 per month, which is
	7873	+
	7874	+
	7875	+
	7876	+
	7877	+
	7878	+	SB1963 Enrolled - 220 - LRB103 25648 HLH 51997 b
	7879	+
	7880	+
	7881	+	SB1963 Enrolled- 221 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 221 - LRB103 25648 HLH 51997 b
	7882	+	SB1963 Enrolled - 221 - LRB103 25648 HLH 51997 b
	7883	+	1 allowed to reimburse the operator or booking intermediary for
	7884	+	2 the expenses incurred in keeping records, preparing and filing
	7885	+	3 returns, remitting the tax, and supplying data to the
	7886	+	4 Department on request.
	7887	+	5 If any payment provided for in this Section exceeds the
	7888	+	6 taxpayer's liabilities under this Act, as shown on an original
	7889	+	7 return, the Department may authorize the taxpayer to credit
	7890	+	8 such excess payment against liability subsequently to be
	7891	+	9 remitted to the Department under this Act, in accordance with
	7892	+	10 reasonable rules adopted by the Department. If the Department
	7893	+	11 subsequently determines that all or any part of the credit
	7894	+	12 taken was not actually due to the taxpayer, the taxpayer's
	7895	+	13 discount shall be reduced by an amount equal to the difference
	7896	+	14 between the discount as applied to the credit taken and that
	7897	+	15 actually due, and that taxpayer shall be liable for penalties
	7898	+	16 and interest on such difference.
	7899	+	17 (Source: P.A. 101-31, eff. 6-28-19.)
	7900	+	18 (35 ILCS 525/10-25)
	7901	+	19 Sec. 10-25. Collection of tax.
	7902	+	20 (a) Beginning with bills issued or charges collected for a
	7903	+	21 purchase of a parking space in a parking area or garage on and
	7904	+	22 after January 1, 2020, the tax imposed by this Act shall be
	7905	+	23 collected from the purchaser by the operator, or, beginning
	7906	+	24 January 1, 2024 by a booking intermediary as provided in
	7907	+	25 Section 10-10, at the rate stated in Section 10-10 and shall be
	7908	+
	7909	+
	7910	+
	7911	+
	7912	+
	7913	+	SB1963 Enrolled - 221 - LRB103 25648 HLH 51997 b
	7914	+
	7915	+
	7916	+	SB1963 Enrolled- 222 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 222 - LRB103 25648 HLH 51997 b
	7917	+	SB1963 Enrolled - 222 - LRB103 25648 HLH 51997 b
	7918	+	1 remitted to the Department as provided in this Act. All
	7919	+	2 charges for parking spaces in a parking area or garage are
	7920	+	3 presumed subject to tax collection. Operators and booking
	7921	+	4 intermediaries, as applicable, shall collect the tax from
	7922	+	5 purchasers by adding the tax to the amount of the purchase
	7923	+	6 price received from the purchaser. The tax imposed by the Act
	7924	+	7 shall when collected be stated as a distinct item separate and
	7925	+	8 apart from the purchase price of the service subject to tax
	7926	+	9 under this Act. However, where it is not possible to state the
	7927	+	10 tax separately the Department may by rule exempt such
	7928	+	11 purchases from this requirement so long as purchasers are
	7929	+	12 notified by language on the invoice or notified by a sign that
	7930	+	13 the tax is included in the purchase price.
	7931	+	14 (b) Any person purchasing a parking space in a parking
	7932	+	15 area or garage subject to tax under this Act as to which there
	7933	+	16 has been no charge made to him of the tax imposed by Section
	7934	+	17 10-10, shall make payment of the tax imposed by Section 10-10
	7935	+	18 of this Act in the form and manner provided by the Department,
	7936	+	19 such payment to be made to the Department in the manner and
	7937	+	20 form required by the Department not later than the 20th day of
	7938	+	21 the month following the month of purchase of the parking
	7939	+	22 space.
	7940	+	23 (Source: P.A. 101-31, eff. 6-28-19.)
	7941	+	24 (35 ILCS 525/10-30)
	7942	+	25 Sec. 10-30. Registration of operators and booking
	7943	+
	7944	+
	7945	+
	7946	+
	7947	+
	7948	+	SB1963 Enrolled - 222 - LRB103 25648 HLH 51997 b
	7949	+
	7950	+
	7951	+	SB1963 Enrolled- 223 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 223 - LRB103 25648 HLH 51997 b
	7952	+	SB1963 Enrolled - 223 - LRB103 25648 HLH 51997 b
	7953	+	1 intermediaries.
	7954	+	2 (a) A person who engages in business as an operator of a
	7955	+	3 parking area or garage in this State, or, beginning January 1,
	7956	+	4 2024, a booking intermediary that directly charges to a
	7957	+	5 customer a separately stated service fee pursuant to
	7958	+	6 subsection (b-5) of Section 10-10, or, beginning January 1,
	7959	+	7 2024, a booking intermediary that facilitates the processing
	7960	+	8 and fulfillment of a reservation for an operator that is not
	7961	+	9 registered under Section 10-10, shall register with the
	7962	+	10 Department. Application for a certificate of registration
	7963	+	11 shall be made to the Department, by electronic means, in the
	7964	+	12 form and manner prescribed by the Department and shall contain
	7965	+	13 any reasonable information the Department may require. Upon
	7966	+	14 receipt of the application for a certificate of registration
	7967	+	15 in proper form and manner, the Department shall issue to the
	7968	+	16 applicant a certificate of registration. Operators who
	7969	+	17 demonstrate that they do not have access to the Internet or
	7970	+	18 demonstrate hardship in applying electronically may petition
	7971	+	19 the Department to waive the electronic application
	7972	+	20 requirements.
	7973	+	21 (b) The Department may refuse to issue or reissue a
	7974	+	22 certificate of registration to any applicant for the reasons
	7975	+	23 set forth in Section 2505-380 of the Department of Revenue Law
	7976	+	24 of the Civil Administrative Code of Illinois.
	7977	+	25 (c) Any person aggrieved by any decision of the Department
	7978	+	26 under this Section may, within 20 days after notice of such
	7979	+
	7980	+
	7981	+
	7982	+
	7983	+
	7984	+	SB1963 Enrolled - 223 - LRB103 25648 HLH 51997 b
	7985	+
	7986	+
	7987	+	SB1963 Enrolled- 224 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 224 - LRB103 25648 HLH 51997 b
	7988	+	SB1963 Enrolled - 224 - LRB103 25648 HLH 51997 b
	7989	+	1 decision, protest and request a hearing, whereupon the
	7990	+	2 Department shall give notice to such person of the time and
	7991	+	3 place fixed for such hearing and shall hold a hearing in
	7992	+	4 conformity with the provisions of this Act and then issue its
	7993	+	5 final administrative decision in the matter to such person. In
	7994	+	6 the absence of such a protest within 20 days, the Department's
	7995	+	7 decision shall become final without any further determination
	7996	+	8 being made or notice given.
	7997	+	9 (Source: P.A. 101-31, eff. 6-28-19.)
	7998	+	10 (35 ILCS 525/10-35)
	7999	+	11 Sec. 10-35. Revocation of certificate of registration.
	8000	+	12 (a) The Department may, after notice and a hearing as
	8001	+	13 provided in this Act, revoke the certificate of registration
	8002	+	14 of any operator or booking intermediary who violates any of
	8003	+	15 the provisions of this Act or any rule adopted pursuant to this
	8004	+	16 Act. Before revocation of a certificate of registration, the
	8005	+	17 Department shall, within 90 days after non-compliance and at
	8006	+	18 least 7 days prior to the date of the hearing, give the
	8007	+	19 operator or booking intermediary so accused notice in writing
	8008	+	20 of the charge against him or her, and on the date designated
	8009	+	21 shall conduct a hearing upon this matter. The lapse of such
	8010	+	22 90-day period shall not preclude the Department from
	8011	+	23 conducting revocation proceedings at a later date if
	8012	+	24 necessary. Any hearing held under this Section shall be
	8013	+	25 conducted by the Director or by any officer or employee of the
	8014	+
	8015	+
	8016	+
	8017	+
	8018	+
	8019	+	SB1963 Enrolled - 224 - LRB103 25648 HLH 51997 b
	8020	+
	8021	+
	8022	+	SB1963 Enrolled- 225 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 225 - LRB103 25648 HLH 51997 b
	8023	+	SB1963 Enrolled - 225 - LRB103 25648 HLH 51997 b
	8024	+	1 Department designated in writing by the Director.
	8025	+	2 (b) The Department may revoke a certificate of
	8026	+	3 registration for the reasons set forth in Section 2505-380 of
	8027	+	4 the Department of Revenue Law of the Civil Administrative Code
	8028	+	5 of Illinois.
	8029	+	6 (c) Upon the hearing of any such proceeding, the Director
	8030	+	7 or any officer or employee of the Department designated in
	8031	+	8 writing by the Director may administer oaths, and the
	8032	+	9 Department may procure by its subpoena the attendance of
	8033	+	10 witnesses and, by its subpoena duces tecum, the production of
	8034	+	11 relevant books and papers. Any circuit court, upon application
	8035	+	12 either of the operator or of the Department, may, by order duly
	8036	+	13 entered, require the attendance of witnesses and the
	8037	+	14 production of relevant books and papers before the Department
	8038	+	15 in any hearing relating to the revocation of certificates of
	8039	+	16 registration. Upon refusal or neglect to obey the order of the
	8040	+	17 court, the court may compel obedience thereof by proceedings
	8041	+	18 for contempt.
	8042	+	19 (d) The Department may, by application to any circuit
	8043	+	20 court, obtain an injunction requiring any person who engages
	8044	+	21 in business as an operator or booking intermediary under this
	8045	+	22 Act to obtain a certificate of registration. Upon refusal or
	8046	+	23 neglect to obey the order of the court, the court may compel
	8047	+	24 obedience by proceedings for contempt.
	8048	+	25 (Source: P.A. 101-31, eff. 6-28-19.)
	8049	+
	8050	+
	8051	+
	8052	+
	8053	+
	8054	+	SB1963 Enrolled - 225 - LRB103 25648 HLH 51997 b
	8055	+
	8056	+
	8057	+	SB1963 Enrolled- 226 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 226 - LRB103 25648 HLH 51997 b
	8058	+	SB1963 Enrolled - 226 - LRB103 25648 HLH 51997 b
	8059	+	1 (35 ILCS 525/10-45)
	8060	+	2 Sec. 10-45. Tax collected as debt owed to State. The tax
	8061	+	3 herein required to be collected by any operator, booking
	8062	+	4 intermediary, or valet business and any such tax collected by
	8063	+	5 that person, shall constitute a debt owed by that person to
	8064	+	6 this State.
	8065	+	7 (Source: P.A. 101-31, eff. 6-28-19.)
	8066	+	8 (35 ILCS 525/10-50)
	8067	+	9 Sec. 10-50. Incorporation by reference. All of the
	8068	+	10 provisions of Sections 1, 2a, 2b, 3 (except provisions
	8069	+	11 relating to transaction returns and except for provisions that
	8070	+	12 are inconsistent with this Act), in respect to all provisions
	8071	+	13 therein other than the State rate of tax) 4, 5, 5a, 5b, 5c, 5d,
	8072	+	14 5e, 5f, 5g, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12,
	8073	+	15 and 13 of the Retailers' Occupation Tax Act that are not
	8074	+	16 inconsistent with this Act, and all provisions of the Uniform
	8075	+	17 Penalty and Interest Act shall apply, as far as practicable,
	8076	+	18 to the subject matter of this Act to the same extent as if such
	8077	+	19 provisions were included in this Act. The enumerated
	8078	+	20 provisions of the Retailers' Occupation Tax Act in this
	8079	+	21 Section and all provisions of the Uniform Penalty and Interest
	8080	+	22 Act shall apply, as far as practicable, to booking
	8081	+	23 intermediaries required to be registered under Section 10-30
	8082	+	24 of this Act.
	8083	+	25 (Source: P.A. 101-31, eff. 6-28-19.)
	8084	+
	8085	+
	8086	+
	8087	+
	8088	+
	8089	+	SB1963 Enrolled - 226 - LRB103 25648 HLH 51997 b
	8090	+
	8091	+
	8092	+	SB1963 Enrolled- 227 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 227 - LRB103 25648 HLH 51997 b
	8093	+	SB1963 Enrolled - 227 - LRB103 25648 HLH 51997 b
	8094	+	1 ARTICLE 25. HOTELS-DISASTER RELIEF
	8095	+	2 Section 25-5. The Hotel Operators' Occupation Tax Act is
	8096	+	3 amended by changing Section 3 as follows:
	8097	+	4 (35 ILCS 145/3) (from Ch. 120, par. 481b.33)
	8098	+	5 Sec. 3. Rate; exemptions.
	8099	+	6 (a) A tax is imposed upon persons engaged in the business
	8100	+	7 of renting, leasing or letting rooms in a hotel at the rate of
	8101	+	8 5% of 94% of the gross rental receipts from such renting,
	8102	+	9 leasing or letting, excluding, however, from gross rental
	8103	+	10 receipts, the proceeds of such renting, leasing or letting to
	8104	+	11 permanent residents of that hotel and proceeds from the tax
	8105	+	12 imposed under subsection (c) of Section 13 of the Metropolitan
	8106	+	13 Pier and Exposition Authority Act.
	8107	+	14 (b) There shall be imposed an additional tax upon persons
	8108	+	15 engaged in the business of renting, leasing or letting rooms
	8109	+	16 in a hotel at the rate of 1% of 94% of the gross rental
	8110	+	17 receipts from such renting, leasing or letting, excluding,
	8111	+	18 however, from gross rental receipts, the proceeds of such
	8112	+	19 renting, leasing or letting to permanent residents of that
	8113	+	20 hotel and proceeds from the tax imposed under subsection (c)
	8114	+	21 of Section 13 of the Metropolitan Pier and Exposition
	8115	+	22 Authority Act.
	8116	+	23 (c) No funds received pursuant to this Act shall be used to
	8117	+
	8118	+
	8119	+
	8120	+
	8121	+
	8122	+	SB1963 Enrolled - 227 - LRB103 25648 HLH 51997 b
	8123	+
	8124	+
	8125	+	SB1963 Enrolled- 228 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 228 - LRB103 25648 HLH 51997 b
	8126	+	SB1963 Enrolled - 228 - LRB103 25648 HLH 51997 b
	8127	+	1 advertise for or otherwise promote new competition in the
	8128	+	2 hotel business.
	8129	+	3 (d) However, such tax is not imposed upon the privilege of
	8130	+	4 engaging in any business in Interstate Commerce or otherwise,
	8131	+	5 which business may not, under the Constitution and Statutes of
	8132	+	6 the United States, be made the subject of taxation by this
	8133	+	7 State. In addition, the tax is not imposed upon gross rental
	8134	+	8 receipts for which the hotel operator is prohibited from
	8135	+	9 obtaining reimbursement for the tax from the customer by
	8136	+	10 reason of a federal treaty.
	8137	+	11 (d-5) On and after July 1, 2017, the tax imposed by this
	8138	+	12 Act shall not apply to gross rental receipts received by an
	8139	+	13 entity that is organized and operated exclusively for
	8140	+	14 religious purposes and possesses an active Exemption
	8141	+	15 Identification Number issued by the Department pursuant to the
	8142	+	16 Retailers' Occupation Tax Act when acting as a hotel operator
	8143	+	17 renting, leasing, or letting rooms:
	8144	+	18 (1) in furtherance of the purposes for which it is
	8145	+	19 organized; or
	8146	+	20 (2) to entities that (i) are organized and operated
	8147	+	21 exclusively for religious purposes, (ii) possess an active
	8148	+	22 Exemption Identification Number issued by the Department
	8149	+	23 pursuant to the Retailers' Occupation Tax Act, and (iii)
	8150	+	24 rent the rooms in furtherance of the purposes for which
	8151	+	25 they are organized.
	8152	+	26 No gross rental receipts are exempt under paragraph (2) of
	8153	+
	8154	+
	8155	+
	8156	+
	8157	+
	8158	+	SB1963 Enrolled - 228 - LRB103 25648 HLH 51997 b
	8159	+
	8160	+
	8161	+	SB1963 Enrolled- 229 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 229 - LRB103 25648 HLH 51997 b
	8162	+	SB1963 Enrolled - 229 - LRB103 25648 HLH 51997 b
	8163	+	1 this subsection (d-5) unless the hotel operator obtains the
	8164	+	2 active Exemption Identification Number from the exclusively
	8165	+	3 religious entity to whom it is renting and maintains that
	8166	+	4 number in its books and records. Gross rental receipts from
	8167	+	5 all rentals other than those described in items (1) or (2) of
	8168	+	6 this subsection (d-5) are subject to the tax imposed by this
	8169	+	7 Act unless otherwise exempt under this Act.
	8170	+	8 This subsection (d-5) is exempt from the sunset provisions
	8171	+	9 of Section 3-5 of this Act.
	8172	+	10 (d-10) On and after July 1, 2023, the tax imposed by this
	8173	+	11 Act shall not apply to gross rental receipts received from the
	8174	+	12 renting, leasing, or letting of rooms to an entity that is
	8175	+	13 organized and operated exclusively by an organization
	8176	+	14 chartered by the United States Congress for the purpose of
	8177	+	15 providing disaster relief and that possesses an active
	8178	+	16 Exemption Identification Number issued by the Department
	8179	+	17 pursuant to the Retailers' Occupation Tax Act if the renting,
	8180	+	18 leasing, or letting of the rooms is in furtherance of the
	8181	+	19 purposes for which the exempt organization is organized. This
	8182	+	20 subsection (d-10) is exempt from the sunset provisions of
	8183	+	21 Section 3-5 of this Act.
	8184	+	22 (e) Persons subject to the tax imposed by this Act may
	8185	+	23 reimburse themselves for their tax liability under this Act by
	8186	+	24 separately stating such tax as an additional charge, which
	8187	+	25 charge may be stated in combination, in a single amount, with
	8188	+	26 any tax imposed pursuant to Sections 8-3-13 and 8-3-14 of the
	8189	+
	8190	+
	8191	+
	8192	+
	8193	+
	8194	+	SB1963 Enrolled - 229 - LRB103 25648 HLH 51997 b
	8195	+
	8196	+
	8197	+	SB1963 Enrolled- 230 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 230 - LRB103 25648 HLH 51997 b
	8198	+	SB1963 Enrolled - 230 - LRB103 25648 HLH 51997 b
	8199	+	1 Illinois Municipal Code, and Section 25.05-10 of "An Act to
	8200	+	2 revise the law in relation to counties".
	8201	+	3 (f) If any hotel operator collects an amount (however
	8202	+	4 designated) which purports to reimburse such operator for
	8203	+	5 hotel operators' occupation tax liability measured by receipts
	8204	+	6 which are not subject to hotel operators' occupation tax, or
	8205	+	7 if any hotel operator, in collecting an amount (however
	8206	+	8 designated) which purports to reimburse such operator for
	8207	+	9 hotel operators' occupation tax liability measured by receipts
	8208	+	10 which are subject to tax under this Act, collects more from the
	8209	+	11 customer than the operators' hotel operators' occupation tax
	8210	+	12 liability in the transaction is, the customer shall have a
	8211	+	13 legal right to claim a refund of such amount from such
	8212	+	14 operator. However, if such amount is not refunded to the
	8213	+	15 customer for any reason, the hotel operator is liable to pay
	8214	+	16 such amount to the Department.
	8215	+	17 (Source: P.A. 100-213, eff. 8-18-17.)
	8216	+	18 ARTICLE 30. MUNICIPAL CODE-UTILITIES
	8217	+	19 Section 30-5. The Illinois Municipal Code is amended by
	8218	+	20 changing Section 8-11-2.5 as follows:
	8219	+	21 (65 ILCS 5/8-11-2.5)
	8220	+	22 Sec. 8-11-2.5. Municipal tax review; requests for
	8221	+	23 information.
	8222	+
	8223	+
	8224	+
	8225	+
	8226	+
	8227	+	SB1963 Enrolled - 230 - LRB103 25648 HLH 51997 b
	8228	+
	8229	+
	8230	+	SB1963 Enrolled- 231 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 231 - LRB103 25648 HLH 51997 b
	8231	+	SB1963 Enrolled - 231 - LRB103 25648 HLH 51997 b
	8232	+	1 (a) If a municipality has imposed a tax under Section
	8233	+	2 8-11-2, then the municipality, which may act through its
	8234	+	3 designated auditor or agent, may conduct an audit of tax
	8235	+	4 receipts collected from the public utility that is subject to
	8236	+	5 the tax or that collects the tax from purchasers on behalf of
	8237	+	6 the municipality to determine whether the amount of tax that
	8238	+	7 was paid by the public utility was accurate.
	8239	+	8 (b) Not more than once every 2 years, a municipality that
	8240	+	9 has imposed a tax under Section 8-11-2 of this Code Act may,
	8241	+	10 subject to the limitations and protections stated in the Local
	8242	+	11 Government Taxpayers' Bill of Rights Act, make a written
	8243	+	12 request via e-mail to an e-mail address provided by the
	8244	+	13 utility for any information from a utility in the format
	8245	+	14 maintained by the public utility in the ordinary course of its
	8246	+	15 business that the municipality reasonably requires in order to
	8247	+	16 perform an audit under subsection (a). The information that
	8248	+	17 may be requested by the municipality includes, without
	8249	+	18 limitation:
	8250	+	19 (1) in an electronic format used by the public utility
	8251	+	20 in the ordinary course of its business, the
	8252	+	21 premises-specific and other information used by the public
	8253	+	22 utility to determine the amount of tax due to the
	8254	+	23 municipality, for a time period that includes the year in
	8255	+	24 which the request is made and not more than 6 years
	8256	+	25 immediately preceding that year, as appropriate for the
	8257	+	26 period being audited, and which shall include for each
	8258	+
	8259	+
	8260	+
	8261	+
	8262	+
	8263	+	SB1963 Enrolled - 231 - LRB103 25648 HLH 51997 b
	8264	+
	8265	+
	8266	+	SB1963 Enrolled- 232 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 232 - LRB103 25648 HLH 51997 b
	8267	+	SB1963 Enrolled - 232 - LRB103 25648 HLH 51997 b
	8268	+	1 customer premises in the municipality: (i) the premises
	8269	+	2 address and zip code; (ii) the classification of the
	8270	+	3 premises as designated by the public utility, such as
	8271	+	4 residential, commercial, or industrial; (iii) monthly
	8272	+	5 usage information sufficient to calculate taxes due, in
	8273	+	6 therms, kilowatts, minutes, or other such other unit of
	8274	+	7 measurement used to calculate the taxes; (iv) the taxes
	8275	+	8 actually assessed, collected, and remitted to the
	8276	+	9 municipality; (v) the first date of service for the
	8277	+	10 premises, if that date occurred within the period being
	8278	+	11 audited; and (vi) any tax exemption claimed for the
	8279	+	12 premises and any additional information that supports a
	8280	+	13 specific tax exemption, if the municipality requests that
	8281	+	14 information, including the customer name and other
	8282	+	15 relevant data; however, a public utility that is an
	8283	+	16 electric utility may not provide other customer-specific
	8284	+	17 information to the municipality; and
	8285	+	18 (2) the premises address for customer accounts that
	8286	+	19 the public utility's records indicate are: (i) in a
	8287	+	20 bordering municipality, township, or unincorporated area
	8288	+	21 (other than the City of Chicago), provided that the
	8289	+	22 municipality provides the public utility a list of such
	8290	+	23 bordering jurisdictions; or (ii) in any zip code with
	8291	+	24 boundaries that include or are adjacent to the requesting
	8292	+	25 municipality provided that the municipality provides the
	8293	+	26 public utility a list of those zip codes; this item (ii)
	8294	+
	8295	+
	8296	+
	8297	+
	8298	+
	8299	+	SB1963 Enrolled - 232 - LRB103 25648 HLH 51997 b
	8300	+
	8301	+
	8302	+	SB1963 Enrolled- 233 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 233 - LRB103 25648 HLH 51997 b
	8303	+	SB1963 Enrolled - 233 - LRB103 25648 HLH 51997 b
	8304	+	1 applies to requests made on or after September 1, 2022. If
	8305	+	2 any such customer is determined by the municipality and
	8306	+	3 the utility to be located within the requesting
	8307	+	4 municipality, then the public utility shall provide the
	8308	+	5 additional information provided in paragraph (1) of this
	8309	+	6 subsection (b)..
	8310	+	7 Following the municipality's receipt of the information
	8311	+	8 provided by the public utility pursuant to paragraphs (1) or
	8312	+	9 (2) of this subsection (b), if a question or issue arises that
	8313	+	10 can only be addressed by accessing customer-specific or
	8314	+	11 additional information not described in this Section, then the
	8315	+	12 utility shall attempt to resolve the question or issue without
	8316	+	13 disclosing any customer-specific information. If this process
	8317	+	14 does not resolve the question or issue, then either the
	8318	+	15 municipality or public utility can further pursue the matter
	8319	+	16 before the Department of Revenue, which has the discretion to
	8320	+	17 receive or share customer-specific information with the
	8321	+	18 municipality as appropriate subject to confidentiality
	8322	+	19 restrictions.
	8323	+	20 (c) Each public utility must provide the information
	8324	+	21 requested under subsection (b) within 45 days after the date
	8325	+	22 of the request.
	8326	+	23 The time in which a public utility must provide the
	8327	+	24 information requested under subsection (b) may be extended by
	8328	+	25 an agreement between the municipality and the public utility.
	8329	+	26 (d) If an audit by the municipality or its agents finds an
	8330	+
	8331	+
	8332	+
	8333	+
	8334	+
	8335	+	SB1963 Enrolled - 233 - LRB103 25648 HLH 51997 b
	8336	+
	8337	+
	8338	+	SB1963 Enrolled- 234 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 234 - LRB103 25648 HLH 51997 b
	8339	+	SB1963 Enrolled - 234 - LRB103 25648 HLH 51997 b
	8340	+	1 error by the public utility in the amount of taxes paid by the
	8341	+	2 public utility, then the municipality must notify the public
	8342	+	3 utility of the error. Any such notice must be issued pursuant
	8343	+	4 to Section 30 of the Local Government Taxpayers' Bill of
	8344	+	5 Rights Act or a lesser period of time from the date the tax was
	8345	+	6 due that may be specified in the municipal ordinance imposing
	8346	+	7 the tax. Upon such a notice, any audit shall be conducted
	8347	+	8 pursuant to Section 35 of the Local Government Taxpayers' Bill
	8348	+	9 of Rights Act subject to the timelines set forth in this
	8349	+	10 subsection (d). The public utility must submit a written
	8350	+	11 response within 60 days after the date the notice was
	8351	+	12 postmarked stating that it has corrected the error or stating
	8352	+	13 the reason that the error is inapplicable or inaccurate. The
	8353	+	14 municipality then has 60 days after the receipt of the public
	8354	+	15 utility's response to review and contest the conclusion of the
	8355	+	16 public utility. If the parties are unable to agree on the
	8356	+	17 disposition of the audit findings within 120 days after the
	8357	+	18 notification of the error to the public utility, then either
	8358	+	19 party may submit the matter for appeal as outlined in Section
	8359	+	20 40 of the Local Government Taxpayers' Bill of Rights Act. If
	8360	+	21 the appeals process does not produce a satisfactory result,
	8361	+	22 then either party may pursue the alleged error in a court of
	8362	+	23 competent jurisdiction.
	8363	+	24 (e) The public utility shall be liable to the municipality
	8364	+	25 for unpaid taxes, including taxes that the public utility
	8365	+	26 failed to properly bill to the customer subject to subsection
	8366	+
	8367	+
	8368	+
	8369	+
	8370	+
	8371	+	SB1963 Enrolled - 234 - LRB103 25648 HLH 51997 b
	8372	+
	8373	+
	8374	+	SB1963 Enrolled- 235 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 235 - LRB103 25648 HLH 51997 b
	8375	+	SB1963 Enrolled - 235 - LRB103 25648 HLH 51997 b
	8376	+	1 paragraph (2) of subsection (e-10) of this Section. This
	8377	+	2 subsection (e) does not limit a utility's right to an
	8378	+	3 offsetting credit it would otherwise be entitled to, including
	8379	+	4 that authorized by subsection (c) of Section 8-11-2 of this
	8380	+	5 the Code. To the extent that a public utility's errors in past
	8381	+	6 tax collections and payments relate to premises located in an
	8382	+	7 area of the municipality that was annexed on or after March 17,
	8383	+	8 2023 (the effective date of Public Act 102-1144) this
	8384	+	9 amendatory Act of the 102nd General Assembly, however, the
	8385	+	10 public utility shall only be liable for such errors beginning
	8386	+	11 60 days after the date that the municipality provided the
	8387	+	12 public utility notice of the annexation, provided that the
	8388	+	13 public utility provides municipalities with an email address
	8389	+	14 to send annexation notices. A copy of the annexation ordinance
	8390	+	15 and the map filed with the County Clerk sent to the email
	8391	+	16 address provided by the public utility shall be deemed
	8392	+	17 sufficient notice, but other forms of notice may also be
	8393	+	18 sufficient.
	8394	+	19 (e-5) Upon mutual agreement, a utility and municipality
	8395	+	20 may use a web portal in lieu of email to receive notice of
	8396	+	21 annexations and boundary changes. After December 31, 2025 for
	8397	+	22 a gas public utility that serves more than 2,000,000 customers
	8398	+	23 in Illinois and after December 31, 2022 for all other public
	8399	+	24 utilities that serve more than 1,000,000 retail customers in
	8400	+	25 Illinois, the public utilities shall provide a secure web
	8401	+	26 portal for municipalities to use, and, thereafter, the web
	8402	+
	8403	+
	8404	+
	8405	+
	8406	+
	8407	+	SB1963 Enrolled - 235 - LRB103 25648 HLH 51997 b
	8408	+
	8409	+
	8410	+	SB1963 Enrolled- 236 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 236 - LRB103 25648 HLH 51997 b
	8411	+	SB1963 Enrolled - 236 - LRB103 25648 HLH 51997 b
	8412	+	1 portals shall be used by all municipalities to notify the
	8413	+	2 public utilities of annexations. The web portal must provide
	8414	+	3 the municipality with an electronic record of all
	8415	+	4 communications and attached documents that the municipality
	8416	+	5 has submitted through the portal.
	8417	+	6 (e-10) (1) No later than August 1, 2023, the Department of
	8418	+	7 Revenue shall develop and publish a written process to be used
	8419	+	8 by each public utility and each municipality that imposes a
	8420	+	9 tax under Section 8-11-2 of this the Code, which may act
	8421	+	10 through its designated auditor or agent, under which:
	8422	+	11 (A) by December 31, 2024, and on a regular schedule
	8423	+	12 thereafter to occur approximately every 5 years, each
	8424	+	13 public utility shall work collaboratively with each
	8425	+	14 municipality to develop and file with the Department of
	8426	+	15 Revenue, a master list of all premises addresses in the
	8427	+	16 municipality (including premises addresses with inactive
	8428	+	17 accounts) that are subject to such tax and all accounts in
	8429	+	18 the municipality that are exempt from such tax, provided
	8430	+	19 that the final date for the first master list shall be
	8431	+	20 extended, at the utility's request, to no later than
	8432	+	21 December 31, 2026;
	8433	+	22 (B) information is provided to the municipality to
	8434	+	23 facilitate development of the master list including
	8435	+	24 information described in paragraph (1) of subsection (b)
	8436	+	25 of this Section regarding all accounts (including premises
	8437	+	26 addresses with inactive accounts) that the public
	8438	+
	8439	+
	8440	+
	8441	+
	8442	+
	8443	+	SB1963 Enrolled - 236 - LRB103 25648 HLH 51997 b
	8444	+
	8445	+
	8446	+	SB1963 Enrolled- 237 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 237 - LRB103 25648 HLH 51997 b
	8447	+	SB1963 Enrolled - 237 - LRB103 25648 HLH 51997 b
	8448	+	1 utility's records show are in the municipality and the
	8449	+	2 premises addresses in (i) any bordering municipality, (ii)
	8450	+	3 any bordering township, or (iii) any zip code that is in
	8451	+	4 any part in the municipality or that borders the
	8452	+	5 municipality;
	8453	+	6 (C) any dispute between the public utility and the
	8454	+	7 municipality related to the master list will be resolved;
	8455	+	8 (D) on a semi-annual basis following the development
	8456	+	9 of the master list, each public utility shall provide to
	8457	+	10 each municipality certain information that the
	8458	+	11 municipality can use to nominate changes to the master
	8459	+	12 list, including, but not limited to: (i) a list of any
	8460	+	13 tax-related changes, such as the addition or removal of an
	8461	+	14 exemption, or to the taxing jurisdiction, to any account
	8462	+	15 on the master list; and (ii) new premises addresses within
	8463	+	16 the municipality, any bordering municipality, in any
	8464	+	17 bordering township, or in any zip code that is in any part
	8465	+	18 in the municipality or that borders the municipality;
	8466	+	19 (E) accounts nominated by the municipality to be added
	8467	+	20 or deleted from the master list may be submitted to the
	8468	+	21 public utility and related disputes will be resolved;
	8469	+	22 (F) changes may be made to the master list; and
	8470	+	23 (G) the utility may file a master list based solely on
	8471	+	24 its records if the municipality fails to participate and
	8472	+	25 such a municipality may request to restart the process
	8473	+	26 prior to the end of the 5-year five-year cycle.
	8474	+
	8475	+
	8476	+
	8477	+
	8478	+
	8479	+	SB1963 Enrolled - 237 - LRB103 25648 HLH 51997 b
	8480	+
	8481	+
	8482	+	SB1963 Enrolled- 238 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 238 - LRB103 25648 HLH 51997 b
	8483	+	SB1963 Enrolled - 238 - LRB103 25648 HLH 51997 b
	8484	+	1 (2) No public utility is liable for any error in tax
	8485	+	2 collections or payments due more than 60 days after the date
	8486	+	3 that the first master list for the relevant municipality is
	8487	+	4 filed with the Department of Revenue unless such error in tax
	8488	+	5 collection or payment:
	8489	+	6 (A) was related to a premises address on the master
	8490	+	7 list at the time of the error;
	8491	+	8 (B) was related to an area of the municipality annexed
	8492	+	9 on or after March 17, 2023 (the effective date of Public
	8493	+	10 Act 102-1144) this amendatory Act of the 102nd General
	8494	+	11 Assembly, notice of which was properly provided to the
	8495	+	12 public utility pursuant to the procedures set forth in
	8496	+	13 subsection (e); or
	8497	+	14 (C) resulted from the public utility's failure to
	8498	+	15 comply with the process established in this subsection
	8499	+	16 (e-10).
	8500	+	17 (3) If the public utility uses a portal as set forth in
	8501	+	18 subsection (e-5), all lists, changes affecting tax collection
	8502	+	19 and remission, proposed corrections, and reports shall be
	8503	+	20 provided through such portal.
	8504	+	21 (e-15) If a customer paid a tax to a municipality that the
	8505	+	22 customer did not owe or was in excess of the tax the customer
	8506	+	23 owed, then the customer may, to the extent allowed by Section
	8507	+	24 9-252 of the Public Utilities Act, recover the tax or over
	8508	+	25 payment from the public utility, and any amount so paid by the
	8509	+	26 public utility may be deducted by that public utility from any
	8510	+
	8511	+
	8512	+
	8513	+
	8514	+
	8515	+	SB1963 Enrolled - 238 - LRB103 25648 HLH 51997 b
	8516	+
	8517	+
	8518	+	SB1963 Enrolled- 239 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 239 - LRB103 25648 HLH 51997 b
	8519	+	SB1963 Enrolled - 239 - LRB103 25648 HLH 51997 b
	8520	+	1 taxes then or thereafter owed by the public utility to that
	8521	+	2 municipality.
	8522	+	3 (e-20) (1) Any court of competent jurisdiction The
	8523	+	4 Department of Revenue shall have the authority to resolve a
	8524	+	5 claim by a municipality that a public utility materially
	8525	+	6 failed to comply with the requirements of subsections (b) or
	8526	+	7 (c) of this Section or the process developed under subsection
	8527	+	8 (e-10) of this Section. If a court the Department of Revenue
	8528	+	9 finds, after notice and hearing, that a public utility (i)
	8529	+	10 caused a material delay in providing information properly
	8530	+	11 requested under such subsections or (ii) omitted a material
	8531	+	12 portion of information properly requested, then, if the claim
	8532	+	13 relates to subsections (b) or (c), the court Department shall
	8533	+	14 assess a penalty on the utility of up to $50,000 per audit, or
	8534	+	15 up to $10,000 per audit for a utility that served less than
	8535	+	16 100,000 retail customers on the date of the audit notice, or,
	8536	+	17 if the claim relates to subsection (e-10), up to $50,000 per
	8537	+	18 5-year master list cycle or up to $10,000 per cycle for a
	8538	+	19 utility that served less than 100,000 retail customers on the
	8539	+	20 date such master list was filed with the Department, which
	8540	+	21 penalty shall be paid by the public utility to the
	8541	+	22 municipality Department of Revenue for deposit into the
	8542	+	23 Supplemental Low-Income Energy Assistance Fund.
	8543	+	24 Notwithstanding anything to the contrary, a penalty assessed
	8544	+	25 pursuant to this subsection shall be the exclusive remedy for
	8545	+	26 the conduct that is the subject of the claim. A penalty
	8546	+
	8547	+
	8548	+
	8549	+
	8550	+
	8551	+	SB1963 Enrolled - 239 - LRB103 25648 HLH 51997 b
	8552	+
	8553	+
	8554	+	SB1963 Enrolled- 240 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 240 - LRB103 25648 HLH 51997 b
	8555	+	SB1963 Enrolled - 240 - LRB103 25648 HLH 51997 b
	8556	+	1 assessed under this subsection shall bar and prohibit pursuit
	8557	+	2 of any other penalty, fine, or recovery related to the conduct
	8558	+	3 for which the penalty was assessed.
	8559	+	4 (2) No penalty shall be assessed by the Department
	8560	+	5 pursuant to this subsection if the Department finds that a
	8561	+	6 delay or omission was immaterial or de minimis.
	8562	+	7 (3) Any penalties or fines paid by a public utility
	8563	+	8 pursuant to this subsection shall not be recoverable through
	8564	+	9 the utility's rates.
	8565	+	10 (4) (Blank). If a municipality and public utility have a
	8566	+	11 disagreement regarding the scope or conduct of an audit
	8567	+	12 undertaken pursuant to this Section, they shall work together
	8568	+	13 in good faith to attempt to resolve the dispute. If, after a
	8569	+	14 period of no less than 14 days, the municipality and public
	8570	+	15 utility are not able to reach an agreement regarding the
	8571	+	16 dispute, either entity, or both entities jointly, may submit a
	8572	+	17 request to the Illinois Department of Revenue seeking
	8573	+	18 resolution of the dispute, and the Department shall have the
	8574	+	19 authority to resolve the issue, and shall resolve such dispute
	8575	+	20 within 60 days. Each such request must include a statement
	8576	+	21 showing that consultation and reasonable attempts to resolve
	8577	+	22 the dispute have failed.
	8578	+	23 The time period established pursuant to this Section for
	8579	+	24 complying with requests for information under this Section
	8580	+	25 shall be suspended during the dispute resolution processes set
	8581	+	26 forth in this paragraph (4) of subsection (e-20), but only for
	8582	+
	8583	+
	8584	+
	8585	+
	8586	+
	8587	+	SB1963 Enrolled - 240 - LRB103 25648 HLH 51997 b
	8588	+
	8589	+
	8590	+	SB1963 Enrolled- 241 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 241 - LRB103 25648 HLH 51997 b
	8591	+	SB1963 Enrolled - 241 - LRB103 25648 HLH 51997 b
	8592	+	1 the issue or issues that are the subject of the dispute.
	8593	+	2 Information requests that are undisputed shall continue to be
	8594	+	3 subject to the time periods for compliance set forth in this
	8595	+	4 Section.
	8596	+	5 (f) All account-specific account specific and
	8597	+	6 premises-specific information provided by a public utility
	8598	+	7 under this Section may be used only for the purpose of an audit
	8599	+	8 of taxes conducted under this Section and the enforcement of
	8600	+	9 any related tax claim. All such information must be held in
	8601	+	10 strict confidence by the municipality and its agents and may
	8602	+	11 not be disclosed to the public under the Freedom of
	8603	+	12 Information Act or under any other similar statutes allowing
	8604	+	13 for or requiring public disclosure.
	8605	+	14 (g) The provisions of this Section shall not be construed
	8606	+	15 as diminishing or replacing any civil remedy available to a
	8607	+	16 municipality, taxpayer, or tax collector.
	8608	+	17 (h) This Section does not apply to any municipality having
	8609	+	18 a population greater than 1,000,000.
	8610	+	19 (i) The changes to subsection (e) and paragraph (2) of
	8611	+	20 subsection (e-10) of this Section made by Public Act 102-1144
	8612	+	21 this amendatory Act of the 102nd General Assembly apply to
	8613	+	22 taxes due on or after August 1, 2022. The remaining changes to
	8614	+	23 this Section made by Public Act 102-1144 this amendatory Act
	8615	+	24 of the 102nd General Assembly apply on or after March 17, 2023
	8616	+	25 (the effective date of Public Act 102-1144) this amendatory
	8617	+	26 Act of the 102nd General Assembly.
	8618	+
	8619	+
	8620	+
	8621	+
	8622	+
	8623	+	SB1963 Enrolled - 241 - LRB103 25648 HLH 51997 b
	8624	+
	8625	+
	8626	+	SB1963 Enrolled- 242 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 242 - LRB103 25648 HLH 51997 b
	8627	+	SB1963 Enrolled - 242 - LRB103 25648 HLH 51997 b
	8628	+	1 (j) As used in this Section:
	8629	+	2 "Customer-specific information" means the name, phone
	8630	+	3 number, email address, and banking information of a customer.
	8631	+	4 "Customer-specific information" includes the load-shape data
	8632	+	5 associated with a customer account. "Customer-specific
	8633	+	6 information" does not include the tax-exempt status of the
	8634	+	7 premises and the name of tax-exempt tax exempt customers.
	8635	+	8 "Premises-specific information" means any information,
	8636	+	9 including billing and usage data, associated with a premises
	8637	+	10 address that is not customer-specific information.
	8638	+	11 "Premises address" includes the jurisdiction to which the
	8639	+	12 address is currently coded by the public utility for municipal
	8640	+	13 tax purposes.
	8641	+	14 (Source: P.A. 102-1144, eff. 3-17-23; revised 4-5-23.)
	8642	+	15 ARTICLE 35. RIVER EDGE ZONES
	8643	+	16 Section 35-5. The River Edge Redevelopment Zone Act is
	8644	+	17 amended by changing Section 10-5.3 as follows:
	8645	+	18 (65 ILCS 115/10-5.3)
	8646	+	19 Sec. 10-5.3. Certification of River Edge Redevelopment
	8647	+	20 Zones.
	8648	+	21 (a) Approval of designated River Edge Redevelopment Zones
	8649	+	22 shall be made by the Department by certification of the
	8650	+	23 designating ordinance. The Department shall promptly issue a
	8651	+
	8652	+
	8653	+
	8654	+
	8655	+
	8656	+	SB1963 Enrolled - 242 - LRB103 25648 HLH 51997 b
	8657	+
	8658	+
	8659	+	SB1963 Enrolled- 243 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 243 - LRB103 25648 HLH 51997 b
	8660	+	SB1963 Enrolled - 243 - LRB103 25648 HLH 51997 b
	8661	+	1 certificate for each zone upon its approval. The certificate
	8662	+	2 shall be signed by the Director of the Department, shall make
	8663	+	3 specific reference to the designating ordinance, which shall
	8664	+	4 be attached thereto, and shall be filed in the office of the
	8665	+	5 Secretary of State. A certified copy of the River Edge
	8666	+	6 Redevelopment Zone Certificate, or a duplicate original
	8667	+	7 thereof, shall be recorded in the office of the recorder of
	8668	+	8 deeds of the county in which the River Edge Redevelopment Zone
	8669	+	9 lies.
	8670	+	10 (b) A River Edge Redevelopment Zone shall be effective
	8671	+	11 upon its certification. The Department shall transmit a copy
	8672	+	12 of the certification to the Department of Revenue, and to the
	8673	+	13 designating municipality. Upon certification of a River Edge
	8674	+	14 Redevelopment Zone, the terms and provisions of the
	8675	+	15 designating ordinance shall be in effect, and may not be
	8676	+	16 amended or repealed except in accordance with Section 10-5.4.
	8677	+	17 (c) A River Edge Redevelopment Zone shall be in effect for
	8678	+	18 the period stated in the certificate, which shall in no event
	8679	+	19 exceed 30 calendar years. Zones shall terminate at midnight of
	8680	+	20 December 31 of the final calendar year of the certified term,
	8681	+	21 except as provided in Section 10-5.4.
	8682	+	22 (d) In calendar years 2006 and 2007, the Department may
	8683	+	23 certify one pilot River Edge Redevelopment Zone in the City of
	8684	+	24 East St. Louis, one pilot River Edge Redevelopment Zone in the
	8685	+	25 City of Rockford, and one pilot River Edge Redevelopment Zone
	8686	+	26 in the City of Aurora.
	8687	+
	8688	+
	8689	+
	8690	+
	8691	+
	8692	+	SB1963 Enrolled - 243 - LRB103 25648 HLH 51997 b
	8693	+
	8694	+
	8695	+	SB1963 Enrolled- 244 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 244 - LRB103 25648 HLH 51997 b
	8696	+	SB1963 Enrolled - 244 - LRB103 25648 HLH 51997 b
	8697	+	1 In calendar year 2009, the Department may certify one
	8698	+	2 pilot River Edge Redevelopment Zone in the City of Elgin.
	8699	+	3 On or after the effective date of this amendatory Act of
	8700	+	4 the 97th General Assembly, the Department may certify one
	8701	+	5 additional pilot River Edge Redevelopment Zone in the City of
	8702	+	6 Peoria.
	8703	+	7 On or after the effective date of this amendatory Act of
	8704	+	8 the 103rd General Assembly, the Department may certify 2
	8705	+	9 additional pilot River Edge Redevelopment Zones, including one
	8706	+	10 in the City of Joliet and one in the City of Kankakee.
	8707	+	11 After certifying the additional pilot River Edge
	8708	+	12 Redevelopment Zones authorized by the above paragraphs,
	8709	+	13 Thereafter the Department may not certify any additional River
	8710	+	14 Edge Redevelopment Zones, but it may amend and rescind
	8711	+	15 certifications of existing River Edge Redevelopment Zones in
	8712	+	16 accordance with Section 10-5.4, except that no River Edge
	8713	+	17 Redevelopment Zone may be extended on or after the effective
	8714	+	18 date of this amendatory Act of the 97th General Assembly. Each
	8715	+	19 River Edge Redevelopment Zone in existence on the effective
	8716	+	20 date of this amendatory Act of the 97th General Assembly shall
	8717	+	21 continue until its scheduled termination under this Act,
	8718	+	22 unless the Zone is decertified sooner. At the time of its term
	8719	+	23 expiration each River Edge Redevelopment Zone will become an
	8720	+	24 open enterprise zone, available for the previously designated
	8721	+	25 area or a different area to compete for designation as an
	8722	+	26 enterprise zone. No preference for designation as a Zone will
	8723	+
	8724	+
	8725	+
	8726	+
	8727	+
	8728	+	SB1963 Enrolled - 244 - LRB103 25648 HLH 51997 b
	8729	+
	8730	+
	8731	+	SB1963 Enrolled- 245 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 245 - LRB103 25648 HLH 51997 b
	8732	+	SB1963 Enrolled - 245 - LRB103 25648 HLH 51997 b
	8733	+	1 be given to the previously designated area.
	8734	+	2 (e) A municipality in which a River Edge Redevelopment
	8735	+	3 Zone has been certified must submit to the Department, within
	8736	+	4 60 days after the certification, a plan for encouraging the
	8737	+	5 participation by minority persons, women, persons with
	8738	+	6 disabilities, and veterans in the zone. The Department may
	8739	+	7 assist the municipality in developing and implementing the
	8740	+	8 plan. The terms "minority person", "woman", and "person with a
	8741	+	9 disability" have the meanings set forth under Section 2 of the
	8742	+	10 Business Enterprise for Minorities, Women, and Persons with
	8743	+	11 Disabilities Act. "Veteran" means an Illinois resident who is
	8744	+	12 a veteran as defined in subsection (h) of Section 1491 of Title
	8745	+	13 10 of the United States Code.
	8746	+	14 (Source: P.A. 100-391, eff. 8-25-17.)
	8747	+	15 ARTICLE 40. HISTORIC PRESERVATION
	8748	+	16 Section 40-5. The Illinois Income Tax Act is amended by
	8749	+	17 changing Section 228 as follows:
	8750	+	18 (35 ILCS 5/228)
	8751	+	19 Sec. 228. Historic preservation credit. For tax years
	8752	+	20 beginning on or after January 1, 2019 and ending on or before
	8753	+	21 December 31, 2028 December 31, 2023, a taxpayer who qualifies
	8754	+	22 for a credit under the Historic Preservation Tax Credit Act is
	8755	+	23 entitled to a credit against the taxes imposed under
	8756	+
	8757	+
	8758	+
	8759	+
	8760	+
	8761	+	SB1963 Enrolled - 245 - LRB103 25648 HLH 51997 b
	8762	+
	8763	+
	8764	+	SB1963 Enrolled- 246 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 246 - LRB103 25648 HLH 51997 b
	8765	+	SB1963 Enrolled - 246 - LRB103 25648 HLH 51997 b
	8766	+	1 subsections (a) and (b) of Section 201 of this Act as provided
	8767	+	2 in that Act. If the taxpayer is a partnership, Subchapter S
	8768	+	3 corporation, or a limited liability company the credit shall
	8769	+	4 be allowed to the partners, shareholders, or members in
	8770	+	5 accordance with the determination of income and distributive
	8771	+	6 share of income under Sections 702 and 704 and Subchapter S of
	8772	+	7 the Internal Revenue Code provided that credits granted to a
	8773	+	8 partnership, a limited liability company taxed as a
	8774	+	9 partnership, or other multiple owners of property shall be
	8775	+	10 passed through to the partners, members, or owners
	8776	+	11 respectively on a pro rata basis or pursuant to an executed
	8777	+	12 agreement among the partners, members, or owners documenting
	8778	+	13 any alternate distribution method. If the amount of any tax
	8779	+	14 credit awarded under this Section exceeds the qualified
	8780	+	15 taxpayer's income tax liability for the year in which the
	8781	+	16 qualified rehabilitation plan was placed in service, the
	8782	+	17 excess amount may be carried forward as provided in the
	8783	+	18 Historic Preservation Tax Credit Act.
	8784	+	19 (Source: P.A. 101-81, eff. 7-12-19; 102-741, eff. 5-6-22.)
	8785	+	20 Section 40-10. The Historic Preservation Tax Credit Act is
	8786	+	21 amended by changing Sections 10 and 20 as follows:
	8787	+	22 (35 ILCS 31/10)
	8788	+	23 Sec. 10. Allowable credit.
	8789	+	24 (a) To the extent authorized by this Act, for taxable
	8790	+
	8791	+
	8792	+
	8793	+
	8794	+
	8795	+	SB1963 Enrolled - 246 - LRB103 25648 HLH 51997 b
	8796	+
	8797	+
	8798	+	SB1963 Enrolled- 247 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 247 - LRB103 25648 HLH 51997 b
	8799	+	SB1963 Enrolled - 247 - LRB103 25648 HLH 51997 b
	8800	+	1 years beginning on or after January 1, 2019 and ending on or
	8801	+	2 before December 31, 2028 December 31, 2023, there shall be
	8802	+	3 allowed a tax credit to the qualified taxpayer against the tax
	8803	+	4 imposed by subsections (a) and (b) of Section 201 of the
	8804	+	5 Illinois Income Tax Act in an aggregate amount equal to 25% of
	8805	+	6 qualified expenditures, but not to exceed $3,000,000, incurred
	8806	+	7 undertaking a qualified rehabilitation plan, provided that the
	8807	+	8 total amount of such expenditures must (i) equal $5,000 or
	8808	+	9 more and (ii) exceed the adjusted basis of the structure on the
	8809	+	10 first day the qualified rehabilitation plan commenced. If the
	8810	+	11 qualified rehabilitation plan spans multiple years, the
	8811	+	12 aggregate credit for the entire project shall be allowed in
	8812	+	13 the last taxable year.
	8813	+	14 (b) To obtain a tax credit certificate pursuant to this
	8814	+	15 Section, the qualified taxpayer must apply with the Division.
	8815	+	16 The Division shall determine the amount of eligible
	8816	+	17 rehabilitation expenditures within 45 days after receipt of a
	8817	+	18 complete application. The taxpayer must provide to the
	8818	+	19 Division a third-party cost certification conducted by a
	8819	+	20 certified public accountant verifying (i) the qualified and
	8820	+	21 non-qualified rehabilitation expenses and (ii) that the
	8821	+	22 qualified expenditures exceed the adjusted basis of the
	8822	+	23 structure on the first day the qualified rehabilitation plan
	8823	+	24 commenced. The accountant shall provide appropriate review and
	8824	+	25 testing of invoices. The Division is authorized, but not
	8825	+	26 required, to accept this third-party cost certification to
	8826	+
	8827	+
	8828	+
	8829	+
	8830	+
	8831	+	SB1963 Enrolled - 247 - LRB103 25648 HLH 51997 b
	8832	+
	8833	+
	8834	+	SB1963 Enrolled- 248 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 248 - LRB103 25648 HLH 51997 b
	8835	+	SB1963 Enrolled - 248 - LRB103 25648 HLH 51997 b
	8836	+	1 determine the amount of qualified expenditures. The Division
	8837	+	2 and the National Park Service shall determine whether the
	8838	+	3 rehabilitation is consistent with the Standards of the
	8839	+	4 Secretary of the United States Department of the Interior.
	8840	+	5 (c) If the amount of any tax credit awarded under this Act
	8841	+	6 exceeds the qualified taxpayer's income tax liability for the
	8842	+	7 year in which the qualified rehabilitation plan was placed in
	8843	+	8 service, the excess amount may be carried forward for
	8844	+	9 deduction from the taxpayer's income tax liability in the next
	8845	+	10 succeeding year or years until the total amount of the credit
	8846	+	11 has been used, except that a credit may not be carried forward
	8847	+	12 for deduction after the tenth taxable year after the taxable
	8848	+	13 year in which the qualified rehabilitation plan was placed in
	8849	+	14 service. Upon completion of the project and approval of the
	8850	+	15 complete application, the Division shall issue a single
	8851	+	16 certificate in the amount of the eligible credits equal to 25%
	8852	+	17 of the qualified expenditures incurred during the eligible
	8853	+	18 taxable years, not to exceed the lesser of the allocated
	8854	+	19 amount or $3,000,000 per single qualified rehabilitation plan.
	8855	+	20 Prior to the issuance of the tax credit certificate, the
	8856	+	21 qualified taxpayer must provide to the Division verification
	8857	+	22 that the rehabilitated structure is a qualified historic
	8858	+	23 structure. At the time the certificate is issued, an issuance
	8859	+	24 fee up to the maximum amount of 2% of the amount of the credits
	8860	+	25 issued by the certificate may be collected from the qualified
	8861	+	26 taxpayer to administer the Act. If collected, this issuance
	8862	+
	8863	+
	8864	+
	8865	+
	8866	+
	8867	+	SB1963 Enrolled - 248 - LRB103 25648 HLH 51997 b
	8868	+
	8869	+
	8870	+	SB1963 Enrolled- 249 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 249 - LRB103 25648 HLH 51997 b
	8871	+	SB1963 Enrolled - 249 - LRB103 25648 HLH 51997 b
	8872	+	1 fee shall be directed to the Division Historic Property
	8873	+	2 Administrative Fund or other such fund as appropriate for use
	8874	+	3 of the Division in the administration of the Historic
	8875	+	4 Preservation Tax Credit Program. The taxpayer must attach the
	8876	+	5 certificate or legal documentation of her or his proportional
	8877	+	6 share of the certificate to the tax return on which the credits
	8878	+	7 are to be claimed. The tax credit under this Section may not
	8879	+	8 reduce the taxpayer's liability to less than zero. If the
	8880	+	9 amount of the credit exceeds the tax liability for the year,
	8881	+	10 the excess credit may be carried forward and applied to the tax
	8882	+	11 liability of the 10 taxable years following the first excess
	8883	+	12 credit year. The taxpayer is not eligible to receive credits
	8884	+	13 under this Section and under Section 221 of the Illinois
	8885	+	14 Income Tax Act for the same qualified expenditures or
	8886	+	15 qualified rehabilitation plan.
	8887	+	16 (d) If the taxpayer is (i) a corporation having an
	8888	+	17 election in effect under Subchapter S of the federal Internal
	8889	+	18 Revenue Code, (ii) a partnership, or (iii) a limited liability
	8890	+	19 company, the credit provided under this Act may be claimed by
	8891	+	20 the shareholders of the corporation, the partners of the
	8892	+	21 partnership, or the members of the limited liability company
	8893	+	22 in the same manner as those shareholders, partners, or members
	8894	+	23 account for their proportionate shares of the income or losses
	8895	+	24 of the corporation, partnership, or limited liability company,
	8896	+	25 or as provided in the bylaws or other executed agreement of the
	8897	+	26 corporation, partnership, or limited liability company.
	8898	+
	8899	+
	8900	+
	8901	+
	8902	+
	8903	+	SB1963 Enrolled - 249 - LRB103 25648 HLH 51997 b
	8904	+
	8905	+
	8906	+	SB1963 Enrolled- 250 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 250 - LRB103 25648 HLH 51997 b
	8907	+	SB1963 Enrolled - 250 - LRB103 25648 HLH 51997 b
	8908	+	1 Credits granted to a partnership, a limited liability company
	8909	+	2 taxed as a partnership, or other multiple owners of property
	8910	+	3 shall be passed through to the partners, members, or owners
	8911	+	4 respectively on a pro rata basis or pursuant to an executed
	8912	+	5 agreement among the partners, members, or owners documenting
	8913	+	6 any alternate distribution method.
	8914	+	7 (e) If a recapture event occurs during the recapture
	8915	+	8 period with respect to a qualified historic structure, then
	8916	+	9 for any taxable year in which the credits are allowed as
	8917	+	10 specified in this Act, the tax under the applicable Section of
	8918	+	11 this Act shall be increased by applying the recapture
	8919	+	12 percentage set forth below to the tax decrease resulting from
	8920	+	13 the application of credits allowed under this Act to the
	8921	+	14 taxable year in question.
	8922	+	15 For the purposes of this subsection, the recapture
	8923	+	16 percentage shall be determined as follows:
	8924	+	17 (1) if the recapture event occurs within the first
	8925	+	18 year after commencement of the recapture period, then the
	8926	+	19 recapture percentage is 100%;
	8927	+	20 (2) if the recapture event occurs within the second
	8928	+	21 year after commencement of the recapture period, then the
	8929	+	22 recapture percentage is 80%;
	8930	+	23 (3) if the recapture event occurs within the third
	8931	+	24 year after commencement of the recapture period, then the
	8932	+	25 recapture percentage is 60%;
	8933	+	26 (4) if the recapture event occurs within the fourth
	8934	+
	8935	+
	8936	+
	8937	+
	8938	+
	8939	+	SB1963 Enrolled - 250 - LRB103 25648 HLH 51997 b
	8940	+
	8941	+
	8942	+	SB1963 Enrolled- 251 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 251 - LRB103 25648 HLH 51997 b
	8943	+	SB1963 Enrolled - 251 - LRB103 25648 HLH 51997 b
	8944	+	1 year after commencement of the recapture period, then the
	8945	+	2 recapture percentage is 40%; and
	8946	+	3 (5) if the recapture event occurs within the fifth
	8947	+	4 year after commencement of the recapture period, then the
	8948	+	5 recapture percentage is 20%.
	8949	+	6 In the case of any recapture event, the carryforwards
	8950	+	7 under this Act shall be adjusted by reason of such event.
	8951	+	8 (f) The Division may adopt rules to implement this Section
	8952	+	9 in addition to the rules expressly authorized herein.
	8953	+	10 (Source: P.A. 101-81, eff. 7-12-19; 102-741, eff. 5-6-22.)
	8954	+	11 (35 ILCS 31/20)
	8955	+	12 Sec. 20. Limitations, reporting, and monitoring.
	8956	+	13 (a) In each every calendar year beginning on or after
	8957	+	14 January 1, 2019 and ending on or before December 31, 2023 that
	8958	+	15 this program is in effect, the Division is authorized to
	8959	+	16 allocate $15,000,000 in tax credits in addition to any
	8960	+	17 unallocated, returned, or rescinded allocations from previous
	8961	+	18 years, pursuant to qualified rehabilitation plans. In each
	8962	+	19 calendar year beginning on or after January 1, 2024 and ending
	8963	+	20 on or before December 31, 2028, the Division is authorized to
	8964	+	21 allocate $25,000,000 in tax credits in addition to any
	8965	+	22 unallocated, returned, or rescinded allocations from previous
	8966	+	23 years, pursuant to qualified rehabilitation plans. The
	8967	+	24 Division shall not allocate or award more than $3,000,000 in
	8968	+	25 tax credits with regard to a single qualified rehabilitation
	8969	+
	8970	+
	8971	+
	8972	+
	8973	+
	8974	+	SB1963 Enrolled - 251 - LRB103 25648 HLH 51997 b
	8975	+
	8976	+
	8977	+	SB1963 Enrolled- 252 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 252 - LRB103 25648 HLH 51997 b
	8978	+	SB1963 Enrolled - 252 - LRB103 25648 HLH 51997 b
	8979	+	1 plan. In allocating tax credits under this Act, the Division
	8980	+	2 must prioritize applications that meet one or more of the
	8981	+	3 following:
	8982	+	4 (1) the structure is located in a county that borders
	8983	+	5 a State with a historic income-producing property
	8984	+	6 rehabilitation credit;
	8985	+	7 (2) the structure was previously owned by a federal,
	8986	+	8 state, or local governmental entity for no less than 6
	8987	+	9 months;
	8988	+	10 (3) the structure is located in a census tract that
	8989	+	11 has a median family income at or below the State median
	8990	+	12 family income; data from the most recent 5-year estimate
	8991	+	13 from the American Community Survey (ACS), published by the
	8992	+	14 U.S. Census Bureau, shall be used to determine
	8993	+	15 eligibility;
	8994	+	16 (4) the qualified rehabilitation plan includes in the
	8995	+	17 development partnership a Community Development Entity or
	8996	+	18 a low-profit (B Corporation) or not-for-profit
	8997	+	19 organization, as defined by Section 501(c)(3) of the
	8998	+	20 Internal Revenue Code; or
	8999	+	21 (5) the structure is located in an area declared under
	9000	+	22 an Emergency Declaration or Major Disaster Declaration
	9001	+	23 under the federal Robert T. Stafford Disaster Relief and
	9002	+	24 Emergency Assistance Act. The declaration must be no older
	9003	+	25 than 3 years at the time of application.
	9004	+	26 (b) The annual aggregate authorization of $15,000,000 set
	9005	+
	9006	+
	9007	+
	9008	+
	9009	+
	9010	+	SB1963 Enrolled - 252 - LRB103 25648 HLH 51997 b
	9011	+
	9012	+
	9013	+	SB1963 Enrolled- 253 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 253 - LRB103 25648 HLH 51997 b
	9014	+	SB1963 Enrolled - 253 - LRB103 25648 HLH 51997 b
	9015	+	1 forth in subsection (a) shall be allocated by the Division, in
	9016	+	2 such proportion as determined by the Director twice in each
	9017	+	3 calendar year that the program is in effect, provided that the
	9018	+	4 amount initially allocated by the Division for the first
	9019	+	5 calendar year application period shall not exceed 65% of the
	9020	+	6 total amount available for allocation. Any unallocated amount
	9021	+	7 remaining as of the end of the second application period of a
	9022	+	8 given calendar year shall be rolled over and added to the total
	9023	+	9 authorized amount for the next available calendar year. The
	9024	+	10 qualified rehabilitation plan must meet a readiness test, as
	9025	+	11 defined by the Division, in order for the application to
	9026	+	12 qualify. In any given application period, applications that
	9027	+	13 qualify under this Act will be prioritized as set forth in
	9028	+	14 subsection (a) and placed in a queue based on the date and time
	9029	+	15 the application is received. Applicants whose applications
	9030	+	16 qualify but do not receive an allocation must reapply to be
	9031	+	17 considered in subsequent application periods.
	9032	+	18 (c) Subject to appropriation to the Division, moneys in
	9033	+	19 the Historic Property Administrative Fund shall be used, on a
	9034	+	20 biennial basis, beginning at the end of the second fiscal year
	9035	+	21 after the effective date of this Act, to hire a qualified third
	9036	+	22 party to prepare a biennial report to assess the overall
	9037	+	23 impact of this Act from the qualified rehabilitation plans
	9038	+	24 under this Act completed in that year and in previous years.
	9039	+	25 Baseline data of the metrics in the report shall be collected
	9040	+	26 at the initiation of a qualified rehabilitation plan. The
	9041	+
	9042	+
	9043	+
	9044	+
	9045	+
	9046	+	SB1963 Enrolled - 253 - LRB103 25648 HLH 51997 b
	9047	+
	9048	+
	9049	+	SB1963 Enrolled- 254 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 254 - LRB103 25648 HLH 51997 b
	9050	+	SB1963 Enrolled - 254 - LRB103 25648 HLH 51997 b
	9051	+	1 overall economic impact shall include at least:
	9052	+	2 (1) the number of applications, project locations, and
	9053	+	3 proposed use of qualified historic structures;
	9054	+	4 (2) the amount of credits awarded and the number and
	9055	+	5 location of projects receiving credit allocations;
	9056	+	6 (3) the status of ongoing projects and projected
	9057	+	7 qualifying expenditures for ongoing projects;
	9058	+	8 (4) for completed projects, the total amount of
	9059	+	9 qualifying rehabilitation expenditures and non-qualifying
	9060	+	10 expenditures, the number of housing units created and the
	9061	+	11 number of housing units that qualify as affordable, and
	9062	+	12 the total square footage rehabilitated and developed;
	9063	+	13 (5) direct, indirect, and induced economic impacts;
	9064	+	14 (6) temporary, permanent, and construction jobs
	9065	+	15 created; and
	9066	+	16 (7) sales, income, and property tax generation before
	9067	+	17 construction, during construction, and after completion.
	9068	+	18 The report to the General Assembly shall be filed with the
	9069	+	19 Clerk of the House of Representatives and the Secretary of the
	9070	+	20 Senate in electronic form only, in the manner that the Clerk
	9071	+	21 and the Secretary shall direct.
	9072	+	22 (d) Any time prior to issuance of a tax credit
	9073	+	23 certificate, the Director of the Division, the State Historic
	9074	+	24 Preservation Officer, or staff of the Division may, upon
	9075	+	25 reasonable notice of not less than 3 business days, conduct a
	9076	+	26 site visit to the project to inspect and evaluate the project.
	9077	+
	9078	+
	9079	+
	9080	+
	9081	+
	9082	+	SB1963 Enrolled - 254 - LRB103 25648 HLH 51997 b
	9083	+
	9084	+
	9085	+	SB1963 Enrolled- 255 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 255 - LRB103 25648 HLH 51997 b
	9086	+	SB1963 Enrolled - 255 - LRB103 25648 HLH 51997 b
	9087	+	1 (e) Any time prior to the issuance of a tax credit
	9088	+	2 certificate, the Director may, upon reasonable notice of not
	9089	+	3 less than 30 calendar days, request a status report from the
	9090	+	4 Applicant consisting of information and updates relevant to
	9091	+	5 the status of the project. Status reports shall not be
	9092	+	6 requested more than twice yearly.
	9093	+	7 (f) In order to demonstrate sufficient evidence of
	9094	+	8 reviewable progress within 12 months after the date the
	9095	+	9 Applicant received notification of allocation from the
	9096	+	10 Division, the Director may require the Applicant to provide
	9097	+	11 all of the following:
	9098	+	12 (1) a viable financial plan which demonstrates by way
	9099	+	13 of an executed agreement that all financing has been
	9100	+	14 secured for the project; such financing shall include, but
	9101	+	15 not be limited to, equity investment as demonstrated by
	9102	+	16 letters of commitment from the owner of the property,
	9103	+	17 investment partners, and equity investors;
	9104	+	18 (2) (blank); and
	9105	+	19 (3) all historic approvals, including all federal and
	9106	+	20 State rehabilitation documents required by the Division.
	9107	+	21 The Director shall review the submitted evidence and may
	9108	+	22 request additional documentation from the Applicant if
	9109	+	23 necessary. The Applicant will have 30 calendar days to provide
	9110	+	24 the information requested, otherwise the allocation may be
	9111	+	25 rescinded at the discretion of the Director.
	9112	+	26 (g) In order to demonstrate sufficient evidence of
	9113	+
	9114	+
	9115	+
	9116	+
	9117	+
	9118	+	SB1963 Enrolled - 255 - LRB103 25648 HLH 51997 b
	9119	+
	9120	+
	9121	+	SB1963 Enrolled- 256 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 256 - LRB103 25648 HLH 51997 b
	9122	+	SB1963 Enrolled - 256 - LRB103 25648 HLH 51997 b
	9123	+	1 reviewable progress within 24 months after the date the
	9124	+	2 application received notification of approval from the
	9125	+	3 Division, the Director may require the Applicant to provide
	9126	+	4 detailed evidence that the Applicant has secured and closed on
	9127	+	5 financing for the complete scope of rehabilitation for the
	9128	+	6 project. To demonstrate evidence that the Applicant has
	9129	+	7 secured and closed on financing, the Applicant will need to
	9130	+	8 provide signed and processed loan agreements, bank financing
	9131	+	9 documents or other legal and contractual evidence to
	9132	+	10 demonstrate that adequate financing is available to complete
	9133	+	11 the project. The Director shall review the submitted evidence
	9134	+	12 and may request additional documentation from the Applicant if
	9135	+	13 necessary. The Applicant will have 30 calendar days to provide
	9136	+	14 the information requested, otherwise the allocation may be
	9137	+	15 rescinded at the discretion of the Director.
	9138	+	16 If the Applicant fails to document reviewable progress
	9139	+	17 within 24 months of approval, the Director may notify the
	9140	+	18 Applicant that the allocation is rescinded. However, should
	9141	+	19 financing and construction be imminent, the Director may elect
	9142	+	20 to grant the Applicant no more than 5 months to close on
	9143	+	21 financing and commence construction. If the Applicant fails to
	9144	+	22 meet these conditions in the required timeframe, the Director
	9145	+	23 shall notify the Applicant that the allocation is rescinded.
	9146	+	24 Any such rescinded allocation shall be added to the aggregate
	9147	+	25 amount of credits available for allocation for the year in
	9148	+	26 which the forfeiture occurred.
	9149	+
	9150	+
	9151	+
	9152	+
	9153	+
	9154	+	SB1963 Enrolled - 256 - LRB103 25648 HLH 51997 b
	9155	+
	9156	+
	9157	+	SB1963 Enrolled- 257 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 257 - LRB103 25648 HLH 51997 b
	9158	+	SB1963 Enrolled - 257 - LRB103 25648 HLH 51997 b
	9159	+	1 The amount of the qualified expenditures identified in the
	9160	+	2 qualified taxpayer's certification of completion and reflected
	9161	+	3 on the Historic Preservation Tax Credit certificate issued by
	9162	+	4 the Director is subject to inspection, examination, and audit
	9163	+	5 by the Department of Revenue.
	9164	+	6 The qualified taxpayer shall establish and maintain for a
	9165	+	7 period of 4 years following the effective date on a project tax
	9166	+	8 credit certificate such records as required by the Director.
	9167	+	9 Such records include, but are not limited to, records
	9168	+	10 documenting project expenditures and compliance with the U.S.
	9169	+	11 Secretary of the Interior's Standards. The qualified taxpayer
	9170	+	12 shall make such records available for review and verification
	9171	+	13 by the Director, the State Historic Preservation Officer, the
	9172	+	14 Department of Revenue, or appropriate staff, as well as other
	9173	+	15 appropriate State agencies. In the event the Director
	9174	+	16 determines an Applicant has submitted a status report
	9175	+	17 containing erroneous information or data not supported by
	9176	+	18 records established and maintained under this Act, the
	9177	+	19 Director may, after providing notice, require the Applicant to
	9178	+	20 resubmit corrected reports.
	9179	+	21 (Source: P.A. 102-741, eff. 5-6-22.)
	9180	+	22 ARTICLE 45. HIGH IMPACT BUSINESSES
	9181	+	23 Section 45-5. The Illinois Enterprise Zone Act is amended
	9182	+	24 by changing Section 5.5 as follows:
	9183	+
	9184	+
	9185	+
	9186	+
	9187	+
	9188	+	SB1963 Enrolled - 257 - LRB103 25648 HLH 51997 b
	9189	+
	9190	+
	9191	+	SB1963 Enrolled- 258 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 258 - LRB103 25648 HLH 51997 b
	9192	+	SB1963 Enrolled - 258 - LRB103 25648 HLH 51997 b
	9193	+	1 (20 ILCS 655/5.5) (from Ch. 67 1/2, par. 609.1)
	9194	+	2 Sec. 5.5. High Impact Business.
	9195	+	3 (a) In order to respond to unique opportunities to assist
	9196	+	4 in the encouragement, development, growth, and expansion of
	9197	+	5 the private sector through large scale investment and
	9198	+	6 development projects, the Department is authorized to receive
	9199	+	7 and approve applications for the designation of "High Impact
	9200	+	8 Businesses" in Illinois, for an initial term of 20 years with
	9201	+	9 an option for renewal for a term not to exceed 20 years,
	9202	+	10 subject to the following conditions:
	9203	+	11 (1) such applications may be submitted at any time
	9204	+	12 during the year;
	9205	+	13 (2) such business is not located, at the time of
	9206	+	14 designation, in an enterprise zone designated pursuant to
	9207	+	15 this Act;
	9208	+	16 (3) the business intends to do one or more of the
	9209	+	17 following:
	9210	+	18 (A) the business intends to make a minimum
	9211	+	19 investment of $12,000,000 which will be placed in
	9212	+	20 service in qualified property and intends to create
	9213	+	21 500 full-time equivalent jobs at a designated location
	9214	+	22 in Illinois or intends to make a minimum investment of
	9215	+	23 $30,000,000 which will be placed in service in
	9216	+	24 qualified property and intends to retain 1,500
	9217	+	25 full-time retained jobs at a designated location in
	9218	+
	9219	+
	9220	+
	9221	+
	9222	+
	9223	+	SB1963 Enrolled - 258 - LRB103 25648 HLH 51997 b
	9224	+
	9225	+
	9226	+	SB1963 Enrolled- 259 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 259 - LRB103 25648 HLH 51997 b
	9227	+	SB1963 Enrolled - 259 - LRB103 25648 HLH 51997 b
	9228	+	1 Illinois. The terms "placed in service" and "qualified
	9229	+	2 property" have the same meanings as described in
	9230	+	3 subsection (h) of Section 201 of the Illinois Income
	9231	+	4 Tax Act; or
	9232	+	5 (B) the business intends to establish a new
	9233	+	6 electric generating facility at a designated location
	9234	+	7 in Illinois. "New electric generating facility", for
	9235	+	8 purposes of this Section, means a newly constructed
	9236	+	9 electric generation plant or a newly constructed
	9237	+	10 generation capacity expansion at an existing electric
	9238	+	11 generation plant, including the transmission lines and
	9239	+	12 associated equipment that transfers electricity from
	9240	+	13 points of supply to points of delivery, and for which
	9241	+	14 such new foundation construction commenced not sooner
	9242	+	15 than July 1, 2001. Such facility shall be designed to
	9243	+	16 provide baseload electric generation and shall operate
	9244	+	17 on a continuous basis throughout the year; and (i)
	9245	+	18 shall have an aggregate rated generating capacity of
	9246	+	19 at least 1,000 megawatts for all new units at one site
	9247	+	20 if it uses natural gas as its primary fuel and
	9248	+	21 foundation construction of the facility is commenced
	9249	+	22 on or before December 31, 2004, or shall have an
	9250	+	23 aggregate rated generating capacity of at least 400
	9251	+	24 megawatts for all new units at one site if it uses coal
	9252	+	25 or gases derived from coal as its primary fuel and
	9253	+	26 shall support the creation of at least 150 new
	9254	+
	9255	+
	9256	+
	9257	+
	9258	+
	9259	+	SB1963 Enrolled - 259 - LRB103 25648 HLH 51997 b
	9260	+
	9261	+
	9262	+	SB1963 Enrolled- 260 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 260 - LRB103 25648 HLH 51997 b
	9263	+	SB1963 Enrolled - 260 - LRB103 25648 HLH 51997 b
	9264	+	1 Illinois coal mining jobs, or (ii) shall be funded
	9265	+	2 through a federal Department of Energy grant before
	9266	+	3 December 31, 2010 and shall support the creation of
	9267	+	4 Illinois coal-mining jobs, or (iii) shall use coal
	9268	+	5 gasification or integrated gasification-combined cycle
	9269	+	6 units that generate electricity or chemicals, or both,
	9270	+	7 and shall support the creation of Illinois coal-mining
	9271	+	8 jobs. The term "placed in service" has the same
	9272	+	9 meaning as described in subsection (h) of Section 201
	9273	+	10 of the Illinois Income Tax Act; or
	9274	+	11 (B-5) the business intends to establish a new
	9275	+	12 gasification facility at a designated location in
	9276	+	13 Illinois. As used in this Section, "new gasification
	9277	+	14 facility" means a newly constructed coal gasification
	9278	+	15 facility that generates chemical feedstocks or
	9279	+	16 transportation fuels derived from coal (which may
	9280	+	17 include, but are not limited to, methane, methanol,
	9281	+	18 and nitrogen fertilizer), that supports the creation
	9282	+	19 or retention of Illinois coal-mining jobs, and that
	9283	+	20 qualifies for financial assistance from the Department
	9284	+	21 before December 31, 2010. A new gasification facility
	9285	+	22 does not include a pilot project located within
	9286	+	23 Jefferson County or within a county adjacent to
	9287	+	24 Jefferson County for synthetic natural gas from coal;
	9288	+	25 or
	9289	+	26 (C) the business intends to establish production
	9290	+
	9291	+
	9292	+
	9293	+
	9294	+
	9295	+	SB1963 Enrolled - 260 - LRB103 25648 HLH 51997 b
	9296	+
	9297	+
	9298	+	SB1963 Enrolled- 261 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 261 - LRB103 25648 HLH 51997 b
	9299	+	SB1963 Enrolled - 261 - LRB103 25648 HLH 51997 b
	9300	+	1 operations at a new coal mine, re-establish production
	9301	+	2 operations at a closed coal mine, or expand production
	9302	+	3 at an existing coal mine at a designated location in
	9303	+	4 Illinois not sooner than July 1, 2001; provided that
	9304	+	5 the production operations result in the creation of
	9305	+	6 150 new Illinois coal mining jobs as described in
	9306	+	7 subdivision (a)(3)(B) of this Section, and further
	9307	+	8 provided that the coal extracted from such mine is
	9308	+	9 utilized as the predominant source for a new electric
	9309	+	10 generating facility. The term "placed in service" has
	9310	+	11 the same meaning as described in subsection (h) of
	9311	+	12 Section 201 of the Illinois Income Tax Act; or
	9312	+	13 (D) the business intends to construct new
	9313	+	14 transmission facilities or upgrade existing
	9314	+	15 transmission facilities at designated locations in
	9315	+	16 Illinois, for which construction commenced not sooner
	9316	+	17 than July 1, 2001. For the purposes of this Section,
	9317	+	18 "transmission facilities" means transmission lines
	9318	+	19 with a voltage rating of 115 kilovolts or above,
	9319	+	20 including associated equipment, that transfer
	9320	+	21 electricity from points of supply to points of
	9321	+	22 delivery and that transmit a majority of the
	9322	+	23 electricity generated by a new electric generating
	9323	+	24 facility designated as a High Impact Business in
	9324	+	25 accordance with this Section. The term "placed in
	9325	+	26 service" has the same meaning as described in
	9326	+
	9327	+
	9328	+
	9329	+
	9330	+
	9331	+	SB1963 Enrolled - 261 - LRB103 25648 HLH 51997 b
	9332	+
	9333	+
	9334	+	SB1963 Enrolled- 262 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 262 - LRB103 25648 HLH 51997 b
	9335	+	SB1963 Enrolled - 262 - LRB103 25648 HLH 51997 b
	9336	+	1 subsection (h) of Section 201 of the Illinois Income
	9337	+	2 Tax Act; or
	9338	+	3 (E) the business intends to establish a new wind
	9339	+	4 power facility at a designated location in Illinois.
	9340	+	5 For purposes of this Section, "new wind power
	9341	+	6 facility" means a newly constructed electric
	9342	+	7 generation facility, a newly constructed expansion of
	9343	+	8 an existing electric generation facility, or the
	9344	+	9 replacement of an existing electric generation
	9345	+	10 facility, including the demolition and removal of an
	9346	+	11 electric generation facility irrespective of whether
	9347	+	12 it will be replaced, placed in service or replaced on
	9348	+	13 or after July 1, 2009, that generates electricity
	9349	+	14 using wind energy devices, and such facility shall be
	9350	+	15 deemed to include any permanent structures associated
	9351	+	16 with the electric generation facility and all
	9352	+	17 associated transmission lines, substations, and other
	9353	+	18 equipment related to the generation of electricity
	9354	+	19 from wind energy devices. For purposes of this
	9355	+	20 Section, "wind energy device" means any device, with a
	9356	+	21 nameplate capacity of at least 0.5 megawatts, that is
	9357	+	22 used in the process of converting kinetic energy from
	9358	+	23 the wind to generate electricity; or
	9359	+	24 (E-5) the business intends to establish a new
	9360	+	25 utility-scale solar facility at a designated location
	9361	+	26 in Illinois. For purposes of this Section, "new
	9362	+
	9363	+
	9364	+
	9365	+
	9366	+
	9367	+	SB1963 Enrolled - 262 - LRB103 25648 HLH 51997 b
	9368	+
	9369	+
	9370	+	SB1963 Enrolled- 263 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 263 - LRB103 25648 HLH 51997 b
	9371	+	SB1963 Enrolled - 263 - LRB103 25648 HLH 51997 b
	9372	+	1 utility-scale solar power facility" means a newly
	9373	+	2 constructed electric generation facility, or a newly
	9374	+	3 constructed expansion of an existing electric
	9375	+	4 generation facility, placed in service on or after
	9376	+	5 July 1, 2021, that (i) generates electricity using
	9377	+	6 photovoltaic cells and (ii) has a nameplate capacity
	9378	+	7 that is greater than 5,000 kilowatts, and such
	9379	+	8 facility shall be deemed to include all associated
	9380	+	9 transmission lines, substations, energy storage
	9381	+	10 facilities, and other equipment related to the
	9382	+	11 generation and storage of electricity from
	9383	+	12 photovoltaic cells; or
	9384	+	13 (F) the business commits to (i) make a minimum
	9385	+	14 investment of $500,000,000, which will be placed in
	9386	+	15 service in a qualified property, (ii) create 125
	9387	+	16 full-time equivalent jobs at a designated location in
	9388	+	17 Illinois, (iii) establish a fertilizer plant at a
	9389	+	18 designated location in Illinois that complies with the
	9390	+	19 set-back standards as described in Table 1: Initial
	9391	+	20 Isolation and Protective Action Distances in the 2012
	9392	+	21 Emergency Response Guidebook published by the United
	9393	+	22 States Department of Transportation, (iv) pay a
	9394	+	23 prevailing wage for employees at that location who are
	9395	+	24 engaged in construction activities, and (v) secure an
	9396	+	25 appropriate level of general liability insurance to
	9397	+	26 protect against catastrophic failure of the fertilizer
	9398	+
	9399	+
	9400	+
	9401	+
	9402	+
	9403	+	SB1963 Enrolled - 263 - LRB103 25648 HLH 51997 b
	9404	+
	9405	+
	9406	+	SB1963 Enrolled- 264 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 264 - LRB103 25648 HLH 51997 b
	9407	+	SB1963 Enrolled - 264 - LRB103 25648 HLH 51997 b
	9408	+	1 plant or any of its constituent systems; in addition,
	9409	+	2 the business must agree to enter into a construction
	9410	+	3 project labor agreement including provisions
	9411	+	4 establishing wages, benefits, and other compensation
	9412	+	5 for employees performing work under the project labor
	9413	+	6 agreement at that location; for the purposes of this
	9414	+	7 Section, "fertilizer plant" means a newly constructed
	9415	+	8 or upgraded plant utilizing gas used in the production
	9416	+	9 of anhydrous ammonia and downstream nitrogen
	9417	+	10 fertilizer products for resale; for the purposes of
	9418	+	11 this Section, "prevailing wage" means the hourly cash
	9419	+	12 wages plus fringe benefits for training and
	9420	+	13 apprenticeship programs approved by the U.S.
	9421	+	14 Department of Labor, Bureau of Apprenticeship and
	9422	+	15 Training, health and welfare, insurance, vacations and
	9423	+	16 pensions paid generally, in the locality in which the
	9424	+	17 work is being performed, to employees engaged in work
	9425	+	18 of a similar character on public works; this paragraph
	9426	+	19 (F) applies only to businesses that submit an
	9427	+	20 application to the Department within 60 days after
	9428	+	21 July 25, 2013 (the effective date of Public Act
	9429	+	22 98-109); or and
	9430	+	23 (G) the business intends to establish a new
	9431	+	24 cultured cell material food production facility at a
	9432	+	25 designated location in Illinois. As used in this
	9433	+	26 paragraph (G):
	9434	+
	9435	+
	9436	+
	9437	+
	9438	+
	9439	+	SB1963 Enrolled - 264 - LRB103 25648 HLH 51997 b
	9440	+
	9441	+
	9442	+	SB1963 Enrolled- 265 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 265 - LRB103 25648 HLH 51997 b
	9443	+	SB1963 Enrolled - 265 - LRB103 25648 HLH 51997 b
	9444	+	1 "Cultured cell material food production facility"
	9445	+	2 means a facility (i) at which cultured animal cell
	9446	+	3 food is developed using animal cell culture
	9447	+	4 technology, (ii) at which production processes occur
	9448	+	5 that include the establishment of cell lines and cell
	9449	+	6 banks, manufacturing controls, and all components and
	9450	+	7 inputs, and (iii) that complies with all existing
	9451	+	8 registrations, inspections, licensing, and approvals
	9452	+	9 from all applicable and participating State and
	9453	+	10 federal food agencies, including the Department of
	9454	+	11 Agriculture, the Department of Public Health, and the
	9455	+	12 United States Food and Drug Administration, to ensure
	9456	+	13 that all food production is safe and lawful under
	9457	+	14 provisions of the Federal Food, Drug and Cosmetic Act
	9458	+	15 related to the development, production, and storage of
	9459	+	16 cultured animal cell food.
	9460	+	17 "New cultured cell material food production
	9461	+	18 facility" means a newly constructed cultured cell
	9462	+	19 material food production facility that is placed in
	9463	+	20 service on or after the effective date of this
	9464	+	21 amendatory Act of the 103rd General Assembly or a
	9465	+	22 newly constructed expansion of an existing cultured
	9466	+	23 cell material food production facility, in a
	9467	+	24 controlled environment, when the improvements are
	9468	+	25 placed in service on or after the effective date of
	9469	+	26 this amendatory Act of the 103rd General Assembly; and
	9470	+
	9471	+
	9472	+
	9473	+
	9474	+
	9475	+	SB1963 Enrolled - 265 - LRB103 25648 HLH 51997 b
	9476	+
	9477	+
	9478	+	SB1963 Enrolled- 266 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 266 - LRB103 25648 HLH 51997 b
	9479	+	SB1963 Enrolled - 266 - LRB103 25648 HLH 51997 b
	9480	+	1 (4) no later than 90 days after an application is
	9481	+	2 submitted, the Department shall notify the applicant of
	9482	+	3 the Department's determination of the qualification of the
	9483	+	4 proposed High Impact Business under this Section.
	9484	+	5 (b) Businesses designated as High Impact Businesses
	9485	+	6 pursuant to subdivision (a)(3)(A) of this Section shall
	9486	+	7 qualify for the credits and exemptions described in the
	9487	+	8 following Acts: Section 9-222 and Section 9-222.1A of the
	9488	+	9 Public Utilities Act, subsection (h) of Section 201 of the
	9489	+	10 Illinois Income Tax Act, and Section 1d of the Retailers'
	9490	+	11 Occupation Tax Act; provided that these credits and exemptions
	9491	+	12 described in these Acts shall not be authorized until the
	9492	+	13 minimum investments set forth in subdivision (a)(3)(A) of this
	9493	+	14 Section have been placed in service in qualified properties
	9494	+	15 and, in the case of the exemptions described in the Public
	9495	+	16 Utilities Act and Section 1d of the Retailers' Occupation Tax
	9496	+	17 Act, the minimum full-time equivalent jobs or full-time
	9497	+	18 retained jobs set forth in subdivision (a)(3)(A) of this
	9498	+	19 Section have been created or retained. Businesses designated
	9499	+	20 as High Impact Businesses under this Section shall also
	9500	+	21 qualify for the exemption described in Section 5l of the
	9501	+	22 Retailers' Occupation Tax Act. The credit provided in
	9502	+	23 subsection (h) of Section 201 of the Illinois Income Tax Act
	9503	+	24 shall be applicable to investments in qualified property as
	9504	+	25 set forth in subdivision (a)(3)(A) of this Section.
	9505	+	26 (b-5) Businesses designated as High Impact Businesses
	9506	+
	9507	+
	9508	+
	9509	+
	9510	+
	9511	+	SB1963 Enrolled - 266 - LRB103 25648 HLH 51997 b
	9512	+
	9513	+
	9514	+	SB1963 Enrolled- 267 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 267 - LRB103 25648 HLH 51997 b
	9515	+	SB1963 Enrolled - 267 - LRB103 25648 HLH 51997 b
	9516	+	1 pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
	9517	+	2 and (a)(3)(D), and (a)(3)(G) of this Section shall qualify for
	9518	+	3 the credits and exemptions described in the following Acts:
	9519	+	4 Section 51 of the Retailers' Occupation Tax Act, Section 9-222
	9520	+	5 and Section 9-222.1A of the Public Utilities Act, and
	9521	+	6 subsection (h) of Section 201 of the Illinois Income Tax Act;
	9522	+	7 however, the credits and exemptions authorized under Section
	9523	+	8 9-222 and Section 9-222.1A of the Public Utilities Act, and
	9524	+	9 subsection (h) of Section 201 of the Illinois Income Tax Act
	9525	+	10 shall not be authorized until the new electric generating
	9526	+	11 facility, the new gasification facility, the new transmission
	9527	+	12 facility, or the new, expanded, or reopened coal mine, or the
	9528	+	13 new cultured cell material food production facility is
	9529	+	14 operational, except that a new electric generating facility
	9530	+	15 whose primary fuel source is natural gas is eligible only for
	9531	+	16 the exemption under Section 5l of the Retailers' Occupation
	9532	+	17 Tax Act.
	9533	+	18 (b-6) Businesses designated as High Impact Businesses
	9534	+	19 pursuant to subdivision (a)(3)(E) or (a)(3)(E-5) of this
	9535	+	20 Section shall qualify for the exemptions described in Section
	9536	+	21 5l of the Retailers' Occupation Tax Act; any business so
	9537	+	22 designated as a High Impact Business being, for purposes of
	9538	+	23 this Section, a "Wind Energy Business".
	9539	+	24 (b-7) Beginning on January 1, 2021, businesses designated
	9540	+	25 as High Impact Businesses by the Department shall qualify for
	9541	+	26 the High Impact Business construction jobs credit under
	9542	+
	9543	+
	9544	+
	9545	+
	9546	+
	9547	+	SB1963 Enrolled - 267 - LRB103 25648 HLH 51997 b
	9548	+
	9549	+
	9550	+	SB1963 Enrolled- 268 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 268 - LRB103 25648 HLH 51997 b
	9551	+	SB1963 Enrolled - 268 - LRB103 25648 HLH 51997 b
	9552	+	1 subsection (h-5) of Section 201 of the Illinois Income Tax Act
	9553	+	2 if the business meets the criteria set forth in subsection (i)
	9554	+	3 of this Section. The total aggregate amount of credits awarded
	9555	+	4 under the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
	9556	+	5 shall not exceed $20,000,000 in any State fiscal year.
	9557	+	6 (c) High Impact Businesses located in federally designated
	9558	+	7 foreign trade zones or sub-zones are also eligible for
	9559	+	8 additional credits, exemptions and deductions as described in
	9560	+	9 the following Acts: Section 9-221 and Section 9-222.1 of the
	9561	+	10 Public Utilities Act; and subsection (g) of Section 201, and
	9562	+	11 Section 203 of the Illinois Income Tax Act.
	9563	+	12 (d) Except for businesses contemplated under subdivision
	9564	+	13 (a)(3)(E), or (a)(3)(E-5), or (a)(3)(G) of this Section,
	9565	+	14 existing Illinois businesses which apply for designation as a
	9566	+	15 High Impact Business must provide the Department with the
	9567	+	16 prospective plan for which 1,500 full-time retained jobs would
	9568	+	17 be eliminated in the event that the business is not
	9569	+	18 designated.
	9570	+	19 (e) Except for new businesses wind power facilities
	9571	+	20 contemplated under subdivision (a)(3)(E) or subdivision
	9572	+	21 (a)(3)(G) of this Section, new proposed facilities which apply
	9573	+	22 for designation as High Impact Business must provide the
	9574	+	23 Department with proof of alternative non-Illinois sites which
	9575	+	24 would receive the proposed investment and job creation in the
	9576	+	25 event that the business is not designated as a High Impact
	9577	+	26 Business.
	9578	+
	9579	+
	9580	+
	9581	+
	9582	+
	9583	+	SB1963 Enrolled - 268 - LRB103 25648 HLH 51997 b
	9584	+
	9585	+
	9586	+	SB1963 Enrolled- 269 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 269 - LRB103 25648 HLH 51997 b
	9587	+	SB1963 Enrolled - 269 - LRB103 25648 HLH 51997 b
	9588	+	1 (f) Except for businesses contemplated under subdivision
	9589	+	2 (a)(3)(E) or subdivision (a)(3)(G) of this Section, in the
	9590	+	3 event that a business is designated a High Impact Business and
	9591	+	4 it is later determined after reasonable notice and an
	9592	+	5 opportunity for a hearing as provided under the Illinois
	9593	+	6 Administrative Procedure Act, that the business would have
	9594	+	7 placed in service in qualified property the investments and
	9595	+	8 created or retained the requisite number of jobs without the
	9596	+	9 benefits of the High Impact Business designation, the
	9597	+	10 Department shall be required to immediately revoke the
	9598	+	11 designation and notify the Director of the Department of
	9599	+	12 Revenue who shall begin proceedings to recover all wrongfully
	9600	+	13 exempted State taxes with interest. The business shall also be
	9601	+	14 ineligible for all State funded Department programs for a
	9602	+	15 period of 10 years.
	9603	+	16 (g) The Department shall revoke a High Impact Business
	9604	+	17 designation if the participating business fails to comply with
	9605	+	18 the terms and conditions of the designation.
	9606	+	19 (h) Prior to designating a business, the Department shall
	9607	+	20 provide the members of the General Assembly and Commission on
	9608	+	21 Government Forecasting and Accountability with a report
	9609	+	22 setting forth the terms and conditions of the designation and
	9610	+	23 guarantees that have been received by the Department in
	9611	+	24 relation to the proposed business being designated.
	9612	+	25 (i) High Impact Business construction jobs credit.
	9613	+	26 Beginning on January 1, 2021, a High Impact Business may
	9614	+
	9615	+
	9616	+
	9617	+
	9618	+
	9619	+	SB1963 Enrolled - 269 - LRB103 25648 HLH 51997 b
	9620	+
	9621	+
	9622	+	SB1963 Enrolled- 270 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 270 - LRB103 25648 HLH 51997 b
	9623	+	SB1963 Enrolled - 270 - LRB103 25648 HLH 51997 b
	9624	+	1 receive a tax credit against the tax imposed under subsections
	9625	+	2 (a) and (b) of Section 201 of the Illinois Income Tax Act in an
	9626	+	3 amount equal to 50% of the amount of the incremental income tax
	9627	+	4 attributable to High Impact Business construction jobs credit
	9628	+	5 employees employed in the course of completing a High Impact
	9629	+	6 Business construction jobs project. However, the High Impact
	9630	+	7 Business construction jobs credit may equal 75% of the amount
	9631	+	8 of the incremental income tax attributable to High Impact
	9632	+	9 Business construction jobs credit employees if the High Impact
	9633	+	10 Business construction jobs credit project is located in an
	9634	+	11 underserved area.
	9635	+	12 The Department shall certify to the Department of Revenue:
	9636	+	13 (1) the identity of taxpayers that are eligible for the High
	9637	+	14 Impact Business construction jobs credit; and (2) the amount
	9638	+	15 of High Impact Business construction jobs credits that are
	9639	+	16 claimed pursuant to subsection (h-5) of Section 201 of the
	9640	+	17 Illinois Income Tax Act in each taxable year. Any business
	9641	+	18 entity that receives a High Impact Business construction jobs
	9642	+	19 credit shall maintain a certified payroll pursuant to
	9643	+	20 subsection (j) of this Section.
	9644	+	21 As used in this subsection (i):
	9645	+	22 "High Impact Business construction jobs credit" means an
	9646	+	23 amount equal to 50% (or 75% if the High Impact Business
	9647	+	24 construction project is located in an underserved area) of the
	9648	+	25 incremental income tax attributable to High Impact Business
	9649	+	26 construction job employees. The total aggregate amount of
	9650	+
	9651	+
	9652	+
	9653	+
	9654	+
	9655	+	SB1963 Enrolled - 270 - LRB103 25648 HLH 51997 b
	9656	+
	9657	+
	9658	+	SB1963 Enrolled- 271 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 271 - LRB103 25648 HLH 51997 b
	9659	+	SB1963 Enrolled - 271 - LRB103 25648 HLH 51997 b
	9660	+	1 credits awarded under the Blue Collar Jobs Act (Article 20 of
	9661	+	2 Public Act 101-9) shall not exceed $20,000,000 in any State
	9662	+	3 fiscal year
	9663	+	4 "High Impact Business construction job employee" means a
	9664	+	5 laborer or worker who is employed by an Illinois contractor or
	9665	+	6 subcontractor in the actual construction work on the site of a
	9666	+	7 High Impact Business construction job project.
	9667	+	8 "High Impact Business construction jobs project" means
	9668	+	9 building a structure or building or making improvements of any
	9669	+	10 kind to real property, undertaken and commissioned by a
	9670	+	11 business that was designated as a High Impact Business by the
	9671	+	12 Department. The term "High Impact Business construction jobs
	9672	+	13 project" does not include the routine operation, routine
	9673	+	14 repair, or routine maintenance of existing structures,
	9674	+	15 buildings, or real property.
	9675	+	16 "Incremental income tax" means the total amount withheld
	9676	+	17 during the taxable year from the compensation of High Impact
	9677	+	18 Business construction job employees.
	9678	+	19 "Underserved area" means a geographic area that meets one
	9679	+	20 or more of the following conditions:
	9680	+	21 (1) the area has a poverty rate of at least 20%
	9681	+	22 according to the latest American Community Survey;
	9682	+	23 (2) 35% or more of the families with children in the
	9683	+	24 area are living below 130% of the poverty line, according
	9684	+	25 to the latest American Community Survey;
	9685	+	26 (3) at least 20% of the households in the area receive
	9686	+
	9687	+
	9688	+
	9689	+
	9690	+
	9691	+	SB1963 Enrolled - 271 - LRB103 25648 HLH 51997 b
	9692	+
	9693	+
	9694	+	SB1963 Enrolled- 272 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 272 - LRB103 25648 HLH 51997 b
	9695	+	SB1963 Enrolled - 272 - LRB103 25648 HLH 51997 b
	9696	+	1 assistance under the Supplemental Nutrition Assistance
	9697	+	2 Program (SNAP); or
	9698	+	3 (4) the area has an average unemployment rate, as
	9699	+	4 determined by the Illinois Department of Employment
	9700	+	5 Security, that is more than 120% of the national
	9701	+	6 unemployment average, as determined by the U.S. Department
	9702	+	7 of Labor, for a period of at least 2 consecutive calendar
	9703	+	8 years preceding the date of the application.
	9704	+	9 (j) Each contractor and subcontractor who is engaged in
	9705	+	10 and executing a High Impact Business Construction jobs
	9706	+	11 project, as defined under subsection (i) of this Section, for
	9707	+	12 a business that is entitled to a credit pursuant to subsection
	9708	+	13 (i) of this Section shall:
	9709	+	14 (1) make and keep, for a period of 5 years from the
	9710	+	15 date of the last payment made on or after June 5, 2019 (the
	9711	+	16 effective date of Public Act 101-9) on a contract or
	9712	+	17 subcontract for a High Impact Business Construction Jobs
	9713	+	18 Project, records for all laborers and other workers
	9714	+	19 employed by the contractor or subcontractor on the
	9715	+	20 project; the records shall include:
	9716	+	21 (A) the worker's name;
	9717	+	22 (B) the worker's address;
	9718	+	23 (C) the worker's telephone number, if available;
	9719	+	24 (D) the worker's social security number;
	9720	+	25 (E) the worker's classification or
	9721	+	26 classifications;
	9722	+
	9723	+
	9724	+
	9725	+
	9726	+
	9727	+	SB1963 Enrolled - 272 - LRB103 25648 HLH 51997 b
	9728	+
	9729	+
	9730	+	SB1963 Enrolled- 273 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 273 - LRB103 25648 HLH 51997 b
	9731	+	SB1963 Enrolled - 273 - LRB103 25648 HLH 51997 b
	9732	+	1 (F) the worker's gross and net wages paid in each
	9733	+	2 pay period;
	9734	+	3 (G) the worker's number of hours worked each day;
	9735	+	4 (H) the worker's starting and ending times of work
	9736	+	5 each day;
	9737	+	6 (I) the worker's hourly wage rate;
	9738	+	7 (J) the worker's hourly overtime wage rate;
	9739	+	8 (K) the worker's race and ethnicity; and
	9740	+	9 (L) the worker's gender;
	9741	+	10 (2) no later than the 15th day of each calendar month,
	9742	+	11 provide a certified payroll for the immediately preceding
	9743	+	12 month to the taxpayer in charge of the High Impact
	9744	+	13 Business construction jobs project; within 5 business days
	9745	+	14 after receiving the certified payroll, the taxpayer shall
	9746	+	15 file the certified payroll with the Department of Labor
	9747	+	16 and the Department of Commerce and Economic Opportunity; a
	9748	+	17 certified payroll must be filed for only those calendar
	9749	+	18 months during which construction on a High Impact Business
	9750	+	19 construction jobs project has occurred; the certified
	9751	+	20 payroll shall consist of a complete copy of the records
	9752	+	21 identified in paragraph (1) of this subsection (j), but
	9753	+	22 may exclude the starting and ending times of work each
	9754	+	23 day; the certified payroll shall be accompanied by a
	9755	+	24 statement signed by the contractor or subcontractor or an
	9756	+	25 officer, employee, or agent of the contractor or
	9757	+	26 subcontractor which avers that:
	9758	+
	9759	+
	9760	+
	9761	+
	9762	+
	9763	+	SB1963 Enrolled - 273 - LRB103 25648 HLH 51997 b
	9764	+
	9765	+
	9766	+	SB1963 Enrolled- 274 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 274 - LRB103 25648 HLH 51997 b
	9767	+	SB1963 Enrolled - 274 - LRB103 25648 HLH 51997 b
	9768	+	1 (A) he or she has examined the certified payroll
	9769	+	2 records required to be submitted by the Act and such
	9770	+	3 records are true and accurate; and
	9771	+	4 (B) the contractor or subcontractor is aware that
	9772	+	5 filing a certified payroll that he or she knows to be
	9773	+	6 false is a Class A misdemeanor.
	9774	+	7 A general contractor is not prohibited from relying on a
	9775	+	8 certified payroll of a lower-tier subcontractor, provided the
	9776	+	9 general contractor does not knowingly rely upon a
	9777	+	10 subcontractor's false certification.
	9778	+	11 Any contractor or subcontractor subject to this
	9779	+	12 subsection, and any officer, employee, or agent of such
	9780	+	13 contractor or subcontractor whose duty as an officer,
	9781	+	14 employee, or agent it is to file a certified payroll under this
	9782	+	15 subsection, who willfully fails to file such a certified
	9783	+	16 payroll on or before the date such certified payroll is
	9784	+	17 required by this paragraph to be filed and any person who
	9785	+	18 willfully files a false certified payroll that is false as to
	9786	+	19 any material fact is in violation of this Act and guilty of a
	9787	+	20 Class A misdemeanor.
	9788	+	21 The taxpayer in charge of the project shall keep the
	9789	+	22 records submitted in accordance with this subsection on or
	9790	+	23 after June 5, 2019 (the effective date of Public Act 101-9) for
	9791	+	24 a period of 5 years from the date of the last payment for work
	9792	+	25 on a contract or subcontract for the High Impact Business
	9793	+	26 construction jobs project.
	9794	+
	9795	+
	9796	+
	9797	+
	9798	+
	9799	+	SB1963 Enrolled - 274 - LRB103 25648 HLH 51997 b
	9800	+
	9801	+
	9802	+	SB1963 Enrolled- 275 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 275 - LRB103 25648 HLH 51997 b
	9803	+	SB1963 Enrolled - 275 - LRB103 25648 HLH 51997 b
	9804	+	1 The records submitted in accordance with this subsection
	9805	+	2 shall be considered public records, except an employee's
	9806	+	3 address, telephone number, and social security number, and
	9807	+	4 made available in accordance with the Freedom of Information
	9808	+	5 Act. The Department of Labor shall share the information with
	9809	+	6 the Department in order to comply with the awarding of a High
	9810	+	7 Impact Business construction jobs credit. A contractor,
	9811	+	8 subcontractor, or public body may retain records required
	9812	+	9 under this Section in paper or electronic format.
	9813	+	10 (k) Upon 7 business days' notice, each contractor and
	9814	+	11 subcontractor shall make available for inspection and copying
	9815	+	12 at a location within this State during reasonable hours, the
	9816	+	13 records identified in this subsection (j) to the taxpayer in
	9817	+	14 charge of the High Impact Business construction jobs project,
	9818	+	15 its officers and agents, the Director of the Department of
	9819	+	16 Labor and his or her deputies and agents, and to federal,
	9820	+	17 State, or local law enforcement agencies and prosecutors.
	9821	+	18 (l) The changes made to this Section by this amendatory
	9822	+	19 Act of the 102nd General Assembly, other than the changes in
	9823	+	20 subsection (a), apply to high impact businesses that submit
	9824	+	21 applications on or after the effective date of this amendatory
	9825	+	22 Act of the 102nd General Assembly.
	9826	+	23 (Source: P.A. 101-9, eff. 6-5-19; 102-108, eff. 1-1-22;
	9827	+	24 102-558, eff. 8-20-21; 102-605, eff. 8-27-21; 102-662, eff.
	9828	+	25 9-15-21; 102-673, eff. 11-30-21; 102-813, eff. 5-13-22;
	9829	+	26 102-1125, eff. 2-3-23.)
	9830	+
	9831	+
	9832	+
	9833	+
	9834	+
	9835	+	SB1963 Enrolled - 275 - LRB103 25648 HLH 51997 b
	9836	+
	9837	+
	9838	+	SB1963 Enrolled- 276 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 276 - LRB103 25648 HLH 51997 b
	9839	+	SB1963 Enrolled - 276 - LRB103 25648 HLH 51997 b
	9840	+	1 Section 45-10. The Economic Development for a Growing
	9841	+	2 Economy Tax Credit Act is amended by changing Sections 5-5 and
	9842	+	3 5-15 as follows:
	9843	+	4 (35 ILCS 10/5-5)
	9844	+	5 Sec. 5-5. Definitions. As used in this Act:
	9845	+	6 "Agreement" means the Agreement between a Taxpayer and the
	9846	+	7 Department under the provisions of Section 5-50 of this Act.
	9847	+	8 "Applicant" means a Taxpayer that is operating a business
	9848	+	9 located or that the Taxpayer plans to locate within the State
	9849	+	10 of Illinois and that is engaged in interstate or intrastate
	9850	+	11 commerce for the purpose of manufacturing, processing,
	9851	+	12 assembling, warehousing, or distributing products, conducting
	9852	+	13 research and development, providing tourism services, or
	9853	+	14 providing services in interstate commerce, office industries,
	9854	+	15 or agricultural processing, but excluding retail, retail food,
	9855	+	16 health, or professional services. "Applicant" does not include
	9856	+	17 a Taxpayer who closes or substantially reduces an operation at
	9857	+	18 one location in the State and relocates substantially the same
	9858	+	19 operation to another location in the State. This does not
	9859	+	20 prohibit a Taxpayer from expanding its operations at another
	9860	+	21 location in the State, provided that existing operations of a
	9861	+	22 similar nature located within the State are not closed or
	9862	+	23 substantially reduced. This also does not prohibit a Taxpayer
	9863	+	24 from moving its operations from one location in the State to
	9864	+
	9865	+
	9866	+
	9867	+
	9868	+
	9869	+	SB1963 Enrolled - 276 - LRB103 25648 HLH 51997 b
	9870	+
	9871	+
	9872	+	SB1963 Enrolled- 277 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 277 - LRB103 25648 HLH 51997 b
	9873	+	SB1963 Enrolled - 277 - LRB103 25648 HLH 51997 b
	9874	+	1 another location in the State for the purpose of expanding the
	9875	+	2 operation provided that the Department determines that
	9876	+	3 expansion cannot reasonably be accommodated within the
	9877	+	4 municipality in which the business is located, or in the case
	9878	+	5 of a business located in an incorporated area of the county,
	9879	+	6 within the county in which the business is located, after
	9880	+	7 conferring with the chief elected official of the municipality
	9881	+	8 or county and taking into consideration any evidence offered
	9882	+	9 by the municipality or county regarding the ability to
	9883	+	10 accommodate expansion within the municipality or county.
	9884	+	11 "Credit" means the amount agreed to between the Department
	9885	+	12 and Applicant under this Act, but not to exceed the lesser of:
	9886	+	13 (1) the sum of (i) 50% of the Incremental Income Tax
	9887	+	14 attributable to New Employees at the Applicant's project and
	9888	+	15 (ii) 10% of the training costs of New Employees; or (2) 100% of
	9889	+	16 the Incremental Income Tax attributable to New Employees at
	9890	+	17 the Applicant's project. However, if the project is located in
	9891	+	18 an underserved area, then the amount of the Credit may not
	9892	+	19 exceed the lesser of: (1) the sum of (i) 75% of the Incremental
	9893	+	20 Income Tax attributable to New Employees at the Applicant's
	9894	+	21 project and (ii) 10% of the training costs of New Employees; or
	9895	+	22 (2) 100% of the Incremental Income Tax attributable to New
	9896	+	23 Employees at the Applicant's project. If the project is not
	9897	+	24 located in an underserved area and the Applicant agrees to
	9898	+	25 hire the required number of New Employees, then the maximum
	9899	+	26 amount of the Credit for that Applicant may be increased by an
	9900	+
	9901	+
	9902	+
	9903	+
	9904	+
	9905	+	SB1963 Enrolled - 277 - LRB103 25648 HLH 51997 b
	9906	+
	9907	+
	9908	+	SB1963 Enrolled- 278 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 278 - LRB103 25648 HLH 51997 b
	9909	+	SB1963 Enrolled - 278 - LRB103 25648 HLH 51997 b
	9910	+	1 amount not to exceed 25% of the Incremental Income Tax
	9911	+	2 attributable to retained employees at the Applicant's project.
	9912	+	3 If the project is located in an underserved area and the
	9913	+	4 Applicant agrees to hire the required number of New Employees,
	9914	+	5 then the maximum amount of the credit for that Applicant may be
	9915	+	6 increased by an amount not to exceed 50% of the Incremental
	9916	+	7 Income Tax attributable to retained employees at the
	9917	+	8 Applicant's project.
	9918	+	9 "Department" means the Department of Commerce and Economic
	9919	+	10 Opportunity.
	9920	+	11 "Director" means the Director of Commerce and Economic
	9921	+	12 Opportunity.
	9922	+	13 "Full-time Employee" means an individual who is employed
	9923	+	14 for consideration for at least 35 hours each week or who
	9924	+	15 renders any other standard of service generally accepted by
	9925	+	16 industry custom or practice as full-time employment. An
	9926	+	17 individual for whom a W-2 is issued by a Professional Employer
	9927	+	18 Organization (PEO) is a full-time employee if employed in the
	9928	+	19 service of the Applicant for consideration for at least 35
	9929	+	20 hours each week or who renders any other standard of service
	9930	+	21 generally accepted by industry custom or practice as full-time
	9931	+	22 employment to Applicant.
	9932	+	23 "Incremental Income Tax" means the total amount withheld
	9933	+	24 during the taxable year from the compensation of New Employees
	9934	+	25 and, if applicable, retained employees under Article 7 of the
	9935	+	26 Illinois Income Tax Act arising from employment at a project
	9936	+
	9937	+
	9938	+
	9939	+
	9940	+
	9941	+	SB1963 Enrolled - 278 - LRB103 25648 HLH 51997 b
	9942	+
	9943	+
	9944	+	SB1963 Enrolled- 279 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 279 - LRB103 25648 HLH 51997 b
	9945	+	SB1963 Enrolled - 279 - LRB103 25648 HLH 51997 b
	9946	+	1 that is the subject of an Agreement.
	9947	+	2 "New Construction EDGE Agreement" means the Agreement
	9948	+	3 between a Taxpayer and the Department under the provisions of
	9949	+	4 Section 5-51 of this Act.
	9950	+	5 "New Construction EDGE Credit" means an amount agreed to
	9951	+	6 between the Department and the Applicant under this Act as
	9952	+	7 part of a New Construction EDGE Agreement that does not exceed
	9953	+	8 50% of the Incremental Income Tax attributable to New
	9954	+	9 Construction EDGE Employees at the Applicant's project;
	9955	+	10 however, if the New Construction EDGE Project is located in an
	9956	+	11 underserved area, then the amount of the New Construction EDGE
	9957	+	12 Credit may not exceed 75% of the Incremental Income Tax
	9958	+	13 attributable to New Construction EDGE Employees at the
	9959	+	14 Applicant's New Construction EDGE Project.
	9960	+	15 "New Construction EDGE Employee" means a laborer or worker
	9961	+	16 who is employed by an Illinois contractor or subcontractor in
	9962	+	17 the actual construction work on the site of a New Construction
	9963	+	18 EDGE Project, pursuant to a New Construction EDGE Agreement.
	9964	+	19 "New Construction EDGE Incremental Income Tax" means the
	9965	+	20 total amount withheld during the taxable year from the
	9966	+	21 compensation of New Construction EDGE Employees.
	9967	+	22 "New Construction EDGE Project" means the building of a
	9968	+	23 Taxpayer's structure or building, or making improvements of
	9969	+	24 any kind to real property. "New Construction EDGE Project"
	9970	+	25 does not include the routine operation, routine repair, or
	9971	+	26 routine maintenance of existing structures, buildings, or real
	9972	+
	9973	+
	9974	+
	9975	+
	9976	+
	9977	+	SB1963 Enrolled - 279 - LRB103 25648 HLH 51997 b
	9978	+
	9979	+
	9980	+	SB1963 Enrolled- 280 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 280 - LRB103 25648 HLH 51997 b
	9981	+	SB1963 Enrolled - 280 - LRB103 25648 HLH 51997 b
	9982	+	1 property.
	9983	+	2 "New Employee" means:
	9984	+	3 (a) A Full-time Employee first employed by a Taxpayer
	9985	+	4 in the project that is the subject of an Agreement and who
	9986	+	5 is hired after the Taxpayer enters into the tax credit
	9987	+	6 Agreement.
	9988	+	7 (b) The term "New Employee" does not include:
	9989	+	8 (1) an employee of the Taxpayer who performs a job
	9990	+	9 that was previously performed by another employee, if
	9991	+	10 that job existed for at least 6 months before hiring
	9992	+	11 the employee;
	9993	+	12 (2) an employee of the Taxpayer who was previously
	9994	+	13 employed in Illinois by a Related Member of the
	9995	+	14 Taxpayer and whose employment was shifted to the
	9996	+	15 Taxpayer after the Taxpayer entered into the tax
	9997	+	16 credit Agreement; or
	9998	+	17 (3) a child, grandchild, parent, or spouse, other
	9999	+	18 than a spouse who is legally separated from the
	10000	+	19 individual, of any individual who has a direct or an
	10001	+	20 indirect ownership interest of at least 5% in the
	10002	+	21 profits, capital, or value of the Taxpayer.
	10003	+	22 (c) Notwithstanding paragraph (1) of subsection (b),
	10004	+	23 an employee may be considered a New Employee under the
	10005	+	24 Agreement if the employee performs a job that was
	10006	+	25 previously performed by an employee who was:
	10007	+	26 (1) treated under the Agreement as a New Employee;
	10008	+
	10009	+
	10010	+
	10011	+
	10012	+
	10013	+	SB1963 Enrolled - 280 - LRB103 25648 HLH 51997 b
	10014	+
	10015	+
	10016	+	SB1963 Enrolled- 281 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 281 - LRB103 25648 HLH 51997 b
	10017	+	SB1963 Enrolled - 281 - LRB103 25648 HLH 51997 b
	10018	+	1 and
	10019	+	2 (2) promoted by the Taxpayer to another job.
	10020	+	3 (d) Notwithstanding subsection (a), the Department may
	10021	+	4 award Credit to an Applicant with respect to an employee
	10022	+	5 hired prior to the date of the Agreement if:
	10023	+	6 (1) the Applicant is in receipt of a letter from
	10024	+	7 the Department stating an intent to enter into a
	10025	+	8 credit Agreement;
	10026	+	9 (2) the letter described in paragraph (1) is
	10027	+	10 issued by the Department not later than 15 days after
	10028	+	11 the effective date of this Act; and
	10029	+	12 (3) the employee was hired after the date the
	10030	+	13 letter described in paragraph (1) was issued.
	10031	+	14 "Noncompliance Date" means, in the case of a Taxpayer that
	10032	+	15 is not complying with the requirements of the Agreement or the
	10033	+	16 provisions of this Act, the day following the last date upon
	10034	+	17 which the Taxpayer was in compliance with the requirements of
	10035	+	18 the Agreement and the provisions of this Act, as determined by
	10036	+	19 the Director, pursuant to Section 5-65.
	10037	+	20 "Pass Through Entity" means an entity that is exempt from
	10038	+	21 the tax under subsection (b) or (c) of Section 205 of the
	10039	+	22 Illinois Income Tax Act.
	10040	+	23 "Professional Employer Organization" (PEO) means an
	10041	+	24 employee leasing company, as defined in Section 206.1(A)(2) of
	10042	+	25 the Illinois Unemployment Insurance Act.
	10043	+	26 "Related Member" means a person that, with respect to the
	10044	+
	10045	+
	10046	+
	10047	+
	10048	+
	10049	+	SB1963 Enrolled - 281 - LRB103 25648 HLH 51997 b
	10050	+
	10051	+
	10052	+	SB1963 Enrolled- 282 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 282 - LRB103 25648 HLH 51997 b
	10053	+	SB1963 Enrolled - 282 - LRB103 25648 HLH 51997 b
	10054	+	1 Taxpayer during any portion of the taxable year, is any one of
	10055	+	2 the following:
	10056	+	3 (1) An individual stockholder, if the stockholder and
	10057	+	4 the members of the stockholder's family (as defined in
	10058	+	5 Section 318 of the Internal Revenue Code) own directly,
	10059	+	6 indirectly, beneficially, or constructively, in the
	10060	+	7 aggregate, at least 50% of the value of the Taxpayer's
	10061	+	8 outstanding stock.
	10062	+	9 (2) A partnership, estate, or trust and any partner or
	10063	+	10 beneficiary, if the partnership, estate, or trust, and its
	10064	+	11 partners or beneficiaries own directly, indirectly,
	10065	+	12 beneficially, or constructively, in the aggregate, at
	10066	+	13 least 50% of the profits, capital, stock, or value of the
	10067	+	14 Taxpayer.
	10068	+	15 (3) A corporation, and any party related to the
	10069	+	16 corporation in a manner that would require an attribution
	10070	+	17 of stock from the corporation to the party or from the
	10071	+	18 party to the corporation under the attribution rules of
	10072	+	19 Section 318 of the Internal Revenue Code, if the Taxpayer
	10073	+	20 owns directly, indirectly, beneficially, or constructively
	10074	+	21 at least 50% of the value of the corporation's outstanding
	10075	+	22 stock.
	10076	+	23 (4) A corporation and any party related to that
	10077	+	24 corporation in a manner that would require an attribution
	10078	+	25 of stock from the corporation to the party or from the
	10079	+	26 party to the corporation under the attribution rules of
	10080	+
	10081	+
	10082	+
	10083	+
	10084	+
	10085	+	SB1963 Enrolled - 282 - LRB103 25648 HLH 51997 b
	10086	+
	10087	+
	10088	+	SB1963 Enrolled- 283 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 283 - LRB103 25648 HLH 51997 b
	10089	+	SB1963 Enrolled - 283 - LRB103 25648 HLH 51997 b
	10090	+	1 Section 318 of the Internal Revenue Code, if the
	10091	+	2 corporation and all such related parties own in the
	10092	+	3 aggregate at least 50% of the profits, capital, stock, or
	10093	+	4 value of the Taxpayer.
	10094	+	5 (5) A person to or from whom there is attribution of
	10095	+	6 stock ownership in accordance with Section 1563(e) of the
	10096	+	7 Internal Revenue Code, except, for purposes of determining
	10097	+	8 whether a person is a Related Member under this paragraph,
	10098	+	9 20% shall be substituted for 5% wherever 5% appears in
	10099	+	10 Section 1563(e) of the Internal Revenue Code.
	10100	+	11 "Startup taxpayer" means, for Agreements that are executed
	10101	+	12 before the effective date of the changes made to this Section
	10102	+	13 by this amendatory Act of the 103rd General Assembly, a
	10103	+	14 corporation, partnership, or other entity incorporated or
	10104	+	15 organized no more than 5 years before the filing of an
	10105	+	16 application for an Agreement that has never had any Illinois
	10106	+	17 income tax liability, excluding any Illinois income tax
	10107	+	18 liability of a Related Member which shall not be attributed to
	10108	+	19 the startup taxpayer. "Startup taxpayer" means, for Agreements
	10109	+	20 that are executed on or after the effective date of this
	10110	+	21 amendatory Act of the 103rd General Assembly, a corporation,
	10111	+	22 partnership, or other entity that is incorporated or organized
	10112	+	23 no more than 10 years before the filing of an application for
	10113	+	24 an Agreement and that has never had any Illinois income tax
	10114	+	25 liability. For the purpose of determining whether the taxpayer
	10115	+	26 has had any Illinois income tax liability, the Illinois income
	10116	+
	10117	+
	10118	+
	10119	+
	10120	+
	10121	+	SB1963 Enrolled - 283 - LRB103 25648 HLH 51997 b
	10122	+
	10123	+
	10124	+	SB1963 Enrolled- 284 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 284 - LRB103 25648 HLH 51997 b
	10125	+	SB1963 Enrolled - 284 - LRB103 25648 HLH 51997 b
	10126	+	1 tax liability of a Related Member shall not be attributed to
	10127	+	2 the startup taxpayer.
	10128	+	3 "Taxpayer" means an individual, corporation, partnership,
	10129	+	4 or other entity that has any Illinois Income Tax liability.
	10130	+	5 Until July 1, 2022, "underserved area" means a geographic
	10131	+	6 area that meets one or more of the following conditions:
	10132	+	7 (1) the area has a poverty rate of at least 20%
	10133	+	8 according to the latest federal decennial census;
	10134	+	9 (2) 75% or more of the children in the area
	10135	+	10 participate in the federal free lunch program according to
	10136	+	11 reported statistics from the State Board of Education;
	10137	+	12 (3) at least 20% of the households in the area receive
	10138	+	13 assistance under the Supplemental Nutrition Assistance
	10139	+	14 Program (SNAP); or
	10140	+	15 (4) the area has an average unemployment rate, as
	10141	+	16 determined by the Illinois Department of Employment
	10142	+	17 Security, that is more than 120% of the national
	10143	+	18 unemployment average, as determined by the U.S. Department
	10144	+	19 of Labor, for a period of at least 2 consecutive calendar
	10145	+	20 years preceding the date of the application.
	10146	+	21 On and after July 1, 2022, "underserved area" means a
	10147	+	22 geographic area that meets one or more of the following
	10148	+	23 conditions:
	10149	+	24 (1) the area has a poverty rate of at least 20%
	10150	+	25 according to the latest American Community Survey;
	10151	+	26 (2) 35% or more of the families with children in the
	10152	+
	10153	+
	10154	+
	10155	+
	10156	+
	10157	+	SB1963 Enrolled - 284 - LRB103 25648 HLH 51997 b
	10158	+
	10159	+
	10160	+	SB1963 Enrolled- 285 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 285 - LRB103 25648 HLH 51997 b
	10161	+	SB1963 Enrolled - 285 - LRB103 25648 HLH 51997 b
	10162	+	1 area are living below 130% of the poverty line, according
	10163	+	2 to the latest American Community Survey;
	10164	+	3 (3) at least 20% of the households in the area receive
	10165	+	4 assistance under the Supplemental Nutrition Assistance
	10166	+	5 Program (SNAP); or
	10167	+	6 (4) the area has an average unemployment rate, as
	10168	+	7 determined by the Illinois Department of Employment
	10169	+	8 Security, that is more than 120% of the national
	10170	+	9 unemployment average, as determined by the U.S. Department
	10171	+	10 of Labor, for a period of at least 2 consecutive calendar
	10172	+	11 years preceding the date of the application.
	10173	+	12 (Source: P.A. 101-9, eff. 6-5-19; 102-330, eff. 1-1-22;
	10174	+	13 102-700, eff. 4-19-22; 102-1125, eff. 2-3-23.)
	10175	+	14 (35 ILCS 10/5-15)
	10176	+	15 Sec. 5-15. Tax Credit Awards. Subject to the conditions
	10177	+	16 set forth in this Act, a Taxpayer is entitled to a Credit
	10178	+	17 against or, as described in subsection (g) of this Section, a
	10179	+	18 payment towards taxes imposed pursuant to subsections (a) and
	10180	+	19 (b) of Section 201 of the Illinois Income Tax Act that may be
	10181	+	20 imposed on the Taxpayer for a taxable year beginning on or
	10182	+	21 after January 1, 1999, if the Taxpayer is awarded a Credit by
	10183	+	22 the Department under this Act for that taxable year.
	10184	+	23 (a) The Department shall make Credit awards under this Act
	10185	+	24 to foster job creation and retention in Illinois.
	10186	+	25 (b) A person that proposes a project to create new jobs in
	10187	+
	10188	+
	10189	+
	10190	+
	10191	+
	10192	+	SB1963 Enrolled - 285 - LRB103 25648 HLH 51997 b
	10193	+
	10194	+
	10195	+	SB1963 Enrolled- 286 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 286 - LRB103 25648 HLH 51997 b
	10196	+	SB1963 Enrolled - 286 - LRB103 25648 HLH 51997 b
	10197	+	1 Illinois must enter into an Agreement with the Department for
	10198	+	2 the Credit under this Act.
	10199	+	3 (c) The Credit shall be claimed for the taxable years
	10200	+	4 specified in the Agreement.
	10201	+	5 (d) The Credit shall not exceed the Incremental Income Tax
	10202	+	6 attributable to the project that is the subject of the
	10203	+	7 Agreement.
	10204	+	8 (e) Nothing herein shall prohibit a Tax Credit Award to an
	10205	+	9 Applicant that uses a PEO if all other award criteria are
	10206	+	10 satisfied.
	10207	+	11 (f) In lieu of the Credit allowed under this Act against
	10208	+	12 the taxes imposed pursuant to subsections (a) and (b) of
	10209	+	13 Section 201 of the Illinois Income Tax Act for any taxable year
	10210	+	14 ending on or after December 31, 2009, for Taxpayers that
	10211	+	15 entered into Agreements prior to January 1, 2015 and otherwise
	10212	+	16 meet the criteria set forth in this subsection (f), the
	10213	+	17 Taxpayer may elect to claim the Credit against its obligation
	10214	+	18 to pay over withholding under Section 704A of the Illinois
	10215	+	19 Income Tax Act.
	10216	+	20 (1) The election under this subsection (f) may be made
	10217	+	21 only by a Taxpayer that (i) is primarily engaged in one of
	10218	+	22 the following business activities: water purification and
	10219	+	23 treatment, motor vehicle metal stamping, automobile
	10220	+	24 manufacturing, automobile and light duty motor vehicle
	10221	+	25 manufacturing, motor vehicle manufacturing, light truck
	10222	+	26 and utility vehicle manufacturing, heavy duty truck
	10223	+
	10224	+
	10225	+
	10226	+
	10227	+
	10228	+	SB1963 Enrolled - 286 - LRB103 25648 HLH 51997 b
	10229	+
	10230	+
	10231	+	SB1963 Enrolled- 287 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 287 - LRB103 25648 HLH 51997 b
	10232	+	SB1963 Enrolled - 287 - LRB103 25648 HLH 51997 b
	10233	+	1 manufacturing, motor vehicle body manufacturing, cable
	10234	+	2 television infrastructure design or manufacturing, or
	10235	+	3 wireless telecommunication or computing terminal device
	10236	+	4 design or manufacturing for use on public networks and
	10237	+	5 (ii) meets the following criteria:
	10238	+	6 (A) the Taxpayer (i) had an Illinois net loss or an
	10239	+	7 Illinois net loss deduction under Section 207 of the
	10240	+	8 Illinois Income Tax Act for the taxable year in which
	10241	+	9 the Credit is awarded, (ii) employed a minimum of
	10242	+	10 1,000 full-time employees in this State during the
	10243	+	11 taxable year in which the Credit is awarded, (iii) has
	10244	+	12 an Agreement under this Act on December 14, 2009 (the
	10245	+	13 effective date of Public Act 96-834), and (iv) is in
	10246	+	14 compliance with all provisions of that Agreement;
	10247	+	15 (B) the Taxpayer (i) had an Illinois net loss or an
	10248	+	16 Illinois net loss deduction under Section 207 of the
	10249	+	17 Illinois Income Tax Act for the taxable year in which
	10250	+	18 the Credit is awarded, (ii) employed a minimum of
	10251	+	19 1,000 full-time employees in this State during the
	10252	+	20 taxable year in which the Credit is awarded, and (iii)
	10253	+	21 has applied for an Agreement within 365 days after
	10254	+	22 December 14, 2009 (the effective date of Public Act
	10255	+	23 96-834);
	10256	+	24 (C) the Taxpayer (i) had an Illinois net operating
	10257	+	25 loss carryforward under Section 207 of the Illinois
	10258	+	26 Income Tax Act in a taxable year ending during
	10259	+
	10260	+
	10261	+
	10262	+
	10263	+
	10264	+	SB1963 Enrolled - 287 - LRB103 25648 HLH 51997 b
	10265	+
	10266	+
	10267	+	SB1963 Enrolled- 288 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 288 - LRB103 25648 HLH 51997 b
	10268	+	SB1963 Enrolled - 288 - LRB103 25648 HLH 51997 b
	10269	+	1 calendar year 2008, (ii) has applied for an Agreement
	10270	+	2 within 150 days after the effective date of this
	10271	+	3 amendatory Act of the 96th General Assembly, (iii)
	10272	+	4 creates at least 400 new jobs in Illinois, (iv)
	10273	+	5 retains at least 2,000 jobs in Illinois that would
	10274	+	6 have been at risk of relocation out of Illinois over a
	10275	+	7 10-year period, and (v) makes a capital investment of
	10276	+	8 at least $75,000,000;
	10277	+	9 (D) the Taxpayer (i) had an Illinois net operating
	10278	+	10 loss carryforward under Section 207 of the Illinois
	10279	+	11 Income Tax Act in a taxable year ending during
	10280	+	12 calendar year 2009, (ii) has applied for an Agreement
	10281	+	13 within 150 days after the effective date of this
	10282	+	14 amendatory Act of the 96th General Assembly, (iii)
	10283	+	15 creates at least 150 new jobs, (iv) retains at least
	10284	+	16 1,000 jobs in Illinois that would have been at risk of
	10285	+	17 relocation out of Illinois over a 10-year period, and
	10286	+	18 (v) makes a capital investment of at least
	10287	+	19 $57,000,000; or
	10288	+	20 (E) the Taxpayer (i) employed at least 2,500
	10289	+	21 full-time employees in the State during the year in
	10290	+	22 which the Credit is awarded, (ii) commits to make at
	10291	+	23 least $500,000,000 in combined capital improvements
	10292	+	24 and project costs under the Agreement, (iii) applies
	10293	+	25 for an Agreement between January 1, 2011 and June 30,
	10294	+	26 2011, (iv) executes an Agreement for the Credit during
	10295	+
	10296	+
	10297	+
	10298	+
	10299	+
	10300	+	SB1963 Enrolled - 288 - LRB103 25648 HLH 51997 b
	10301	+
	10302	+
	10303	+	SB1963 Enrolled- 289 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 289 - LRB103 25648 HLH 51997 b
	10304	+	SB1963 Enrolled - 289 - LRB103 25648 HLH 51997 b
	10305	+	1 calendar year 2011, and (v) was incorporated no more
	10306	+	2 than 5 years before the filing of an application for an
	10307	+	3 Agreement.
	10308	+	4 (1.5) The election under this subsection (f) may also
	10309	+	5 be made by a Taxpayer for any Credit awarded pursuant to an
	10310	+	6 agreement that was executed between January 1, 2011 and
	10311	+	7 June 30, 2011, if the Taxpayer (i) is primarily engaged in
	10312	+	8 the manufacture of inner tubes or tires, or both, from
	10313	+	9 natural and synthetic rubber, (ii) employs a minimum of
	10314	+	10 2,400 full-time employees in Illinois at the time of
	10315	+	11 application, (iii) creates at least 350 full-time jobs and
	10316	+	12 retains at least 250 full-time jobs in Illinois that would
	10317	+	13 have been at risk of being created or retained outside of
	10318	+	14 Illinois, and (iv) makes a capital investment of at least
	10319	+	15 $200,000,000 at the project location.
	10320	+	16 (1.6) The election under this subsection (f) may also
	10321	+	17 be made by a Taxpayer for any Credit awarded pursuant to an
	10322	+	18 agreement that was executed within 150 days after the
	10323	+	19 effective date of this amendatory Act of the 97th General
	10324	+	20 Assembly, if the Taxpayer (i) is primarily engaged in the
	10325	+	21 operation of a discount department store, (ii) maintains
	10326	+	22 its corporate headquarters in Illinois, (iii) employs a
	10327	+	23 minimum of 4,250 full-time employees at its corporate
	10328	+	24 headquarters in Illinois at the time of application, (iv)
	10329	+	25 retains at least 4,250 full-time jobs in Illinois that
	10330	+	26 would have been at risk of being relocated outside of
	10331	+
	10332	+
	10333	+
	10334	+
	10335	+
	10336	+	SB1963 Enrolled - 289 - LRB103 25648 HLH 51997 b
	10337	+
	10338	+
	10339	+	SB1963 Enrolled- 290 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 290 - LRB103 25648 HLH 51997 b
	10340	+	SB1963 Enrolled - 290 - LRB103 25648 HLH 51997 b
	10341	+	1 Illinois, (v) had a minimum of $40,000,000,000 in total
	10342	+	2 revenue in 2010, and (vi) makes a capital investment of at
	10343	+	3 least $300,000,000 at the project location.
	10344	+	4 (1.7) Notwithstanding any other provision of law, the
	10345	+	5 election under this subsection (f) may also be made by a
	10346	+	6 Taxpayer for any Credit awarded pursuant to an agreement
	10347	+	7 that was executed or applied for on or after July 1, 2011
	10348	+	8 and on or before March 31, 2012, if the Taxpayer is
	10349	+	9 primarily engaged in the manufacture of original and
	10350	+	10 aftermarket filtration parts and products for automobiles,
	10351	+	11 motor vehicles, light duty motor vehicles, light trucks
	10352	+	12 and utility vehicles, and heavy duty trucks, (ii) employs
	10353	+	13 a minimum of 1,000 full-time employees in Illinois at the
	10354	+	14 time of application, (iii) creates at least 250 full-time
	10355	+	15 jobs in Illinois, (iv) relocates its corporate
	10356	+	16 headquarters to Illinois from another state, and (v) makes
	10357	+	17 a capital investment of at least $4,000,000 at the project
	10358	+	18 location.
	10359	+	19 (1.8) Notwithstanding any other provision of law, the
	10360	+	20 election under this subsection (f) may also be made by a
	10361	+	21 startup taxpayer for any Credit awarded pursuant to an
	10362	+	22 Agreement that was executed or applied for on or after the
	10363	+	23 effective date of this amendatory Act of the 102nd General
	10364	+	24 Assembly, if the startup taxpayer, without considering any
	10365	+	25 Related Member or other investor, (i) has never had any
	10366	+	26 Illinois income tax liability and (ii) was incorporated no
	10367	+
	10368	+
	10369	+
	10370	+
	10371	+
	10372	+	SB1963 Enrolled - 290 - LRB103 25648 HLH 51997 b
	10373	+
	10374	+
	10375	+	SB1963 Enrolled- 291 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 291 - LRB103 25648 HLH 51997 b
	10376	+	SB1963 Enrolled - 291 - LRB103 25648 HLH 51997 b
	10377	+	1 more than 5 years before the filing of an application for
	10378	+	2 an Agreement. Any such election under this paragraph (1.8)
	10379	+	3 shall be effective unless and until such startup taxpayer
	10380	+	4 has any Illinois income tax liability. This election under
	10381	+	5 this paragraph (1.8) shall automatically terminate when
	10382	+	6 the startup taxpayer has any Illinois income tax liability
	10383	+	7 at the end of any taxable year during the term of the
	10384	+	8 Agreement. Thereafter, the startup taxpayer may receive a
	10385	+	9 Credit, taking into account any benefits previously
	10386	+	10 enjoyed or received by way of the election under this
	10387	+	11 paragraph (1.8), so long as the startup taxpayer remains
	10388	+	12 in compliance with the terms and conditions of the
	10389	+	13 Agreement.
	10390	+	14 (2) An election under this subsection shall allow the
	10391	+	15 credit to be taken against payments otherwise due under
	10392	+	16 Section 704A of the Illinois Income Tax Act during the
	10393	+	17 first calendar quarter year beginning after the end of the
	10394	+	18 taxable quarter year in which the credit is awarded under
	10395	+	19 this Act.
	10396	+	20 (3) The election shall be made in the form and manner
	10397	+	21 required by the Illinois Department of Revenue and, once
	10398	+	22 made, shall be irrevocable.
	10399	+	23 (4) If a Taxpayer who meets the requirements of
	10400	+	24 subparagraph (A) of paragraph (1) of this subsection (f)
	10401	+	25 elects to claim the Credit against its withholdings as
	10402	+	26 provided in this subsection (f), then, on and after the
	10403	+
	10404	+
	10405	+
	10406	+
	10407	+
	10408	+	SB1963 Enrolled - 291 - LRB103 25648 HLH 51997 b
	10409	+
	10410	+
	10411	+	SB1963 Enrolled- 292 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 292 - LRB103 25648 HLH 51997 b
	10412	+	SB1963 Enrolled - 292 - LRB103 25648 HLH 51997 b
	10413	+	1 date of the election, the terms of the Agreement between
	10414	+	2 the Taxpayer and the Department may not be further amended
	10415	+	3 during the term of the Agreement.
	10416	+	4 (g) A pass-through entity that has been awarded a credit
	10417	+	5 under this Act, its shareholders, or its partners may treat
	10418	+	6 some or all of the credit awarded pursuant to this Act as a tax
	10419	+	7 payment for purposes of the Illinois Income Tax Act. The term
	10420	+	8 "tax payment" means a payment as described in Article 6 or
	10421	+	9 Article 8 of the Illinois Income Tax Act or a composite payment
	10422	+	10 made by a pass-through entity on behalf of any of its
	10423	+	11 shareholders or partners to satisfy such shareholders' or
	10424	+	12 partners' taxes imposed pursuant to subsections (a) and (b) of
	10425	+	13 Section 201 of the Illinois Income Tax Act. In no event shall
	10426	+	14 the amount of the award credited pursuant to this Act exceed
	10427	+	15 the Illinois income tax liability of the pass-through entity
	10428	+	16 or its shareholders or partners for the taxable year.
	10429	+	17 (Source: P.A. 102-700, eff. 4-19-22.)
	10430	+	18 Section 45-15. The Public Utilities Act is amended by
	10431	+	19 changing Section 9-222.1A as follows:
	10432	+	20 (220 ILCS 5/9-222.1A)
	10433	+	21 Sec. 9-222.1A. High impact business. Beginning on August
	10434	+	22 1, 1998 and thereafter, a business enterprise that is
	10435	+	23 certified as a High Impact Business by the Department of
	10436	+	24 Commerce and Economic Opportunity (formerly Department of
	10437	+
	10438	+
	10439	+
	10440	+
	10441	+
	10442	+	SB1963 Enrolled - 292 - LRB103 25648 HLH 51997 b
	10443	+
	10444	+
	10445	+	SB1963 Enrolled- 293 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 293 - LRB103 25648 HLH 51997 b
	10446	+	SB1963 Enrolled - 293 - LRB103 25648 HLH 51997 b
	10447	+	1 Commerce and Community Affairs) is exempt from the tax imposed
	10448	+	2 by Section 2-4 of the Electricity Excise Tax Law, if the High
	10449	+	3 Impact Business is registered to self-assess that tax, and is
	10450	+	4 exempt from any additional charges added to the business
	10451	+	5 enterprise's utility bills as a pass-on of State utility taxes
	10452	+	6 under Section 9-222 of this Act, to the extent the tax or
	10453	+	7 charges are exempted by the percentage specified by the
	10454	+	8 Department of Commerce and Economic Opportunity for State
	10455	+	9 utility taxes, provided the business enterprise meets the
	10456	+	10 following criteria:
	10457	+	11 (1) (A) it intends either (i) to make a minimum
	10458	+	12 eligible investment of $12,000,000 that will be placed
	10459	+	13 in service in qualified property in Illinois and is
	10460	+	14 intended to create at least 500 full-time equivalent
	10461	+	15 jobs at a designated location in Illinois; or (ii) to
	10462	+	16 make a minimum eligible investment of $30,000,000 that
	10463	+	17 will be placed in service in qualified property in
	10464	+	18 Illinois and is intended to retain at least 1,500
	10465	+	19 full-time equivalent jobs at a designated location in
	10466	+	20 Illinois; or
	10467	+	21 (B) it meets the criteria of subdivision
	10468	+	22 (a)(3)(B), (a)(3)(C), (a)(3)(D), or (a)(3)(F), or
	10469	+	23 (a)(3)(G) of Section 5.5 of the Illinois Enterprise
	10470	+	24 Zone Act;
	10471	+	25 (2) it is designated as a High Impact Business by the
	10472	+	26 Department of Commerce and Economic Opportunity; and
	10473	+
	10474	+
	10475	+
	10476	+
	10477	+
	10478	+	SB1963 Enrolled - 293 - LRB103 25648 HLH 51997 b
	10479	+
	10480	+
	10481	+	SB1963 Enrolled- 294 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 294 - LRB103 25648 HLH 51997 b
	10482	+	SB1963 Enrolled - 294 - LRB103 25648 HLH 51997 b
	10483	+	1 (3) it is certified by the Department of Commerce and
	10484	+	2 Economic Opportunity as complying with the requirements
	10485	+	3 specified in clauses (1) and (2) of this Section.
	10486	+	4 The Department of Commerce and Economic Opportunity shall
	10487	+	5 determine the period during which the exemption from the
	10488	+	6 Electricity Excise Tax Law and the charges imposed under
	10489	+	7 Section 9-222 are in effect and shall specify the percentage
	10490	+	8 of the exemption from those taxes or additional charges.
	10491	+	9 The Department of Commerce and Economic Opportunity is
	10492	+	10 authorized to promulgate rules and regulations to carry out
	10493	+	11 the provisions of this Section, including procedures for
	10494	+	12 complying with the requirements specified in clauses (1) and
	10495	+	13 (2) of this Section and procedures for applying for the
	10496	+	14 exemptions authorized under this Section; to define the
	10497	+	15 amounts and types of eligible investments that business
	10498	+	16 enterprises must make in order to receive State utility tax
	10499	+	17 exemptions or exemptions from the additional charges imposed
	10500	+	18 under Section 9-222 and this Section; to approve such utility
	10501	+	19 tax exemptions for business enterprises whose investments are
	10502	+	20 not yet placed in service; and to require that business
	10503	+	21 enterprises granted tax exemptions or exemptions from
	10504	+	22 additional charges under Section 9-222 repay the exempted
	10505	+	23 amount if the business enterprise fails to comply with the
	10506	+	24 terms and conditions of the certification.
	10507	+	25 Upon certification of the business enterprises by the
	10508	+	26 Department of Commerce and Economic Opportunity, the
	10509	+
	10510	+
	10511	+
	10512	+
	10513	+
	10514	+	SB1963 Enrolled - 294 - LRB103 25648 HLH 51997 b
	10515	+
	10516	+
	10517	+	SB1963 Enrolled- 295 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 295 - LRB103 25648 HLH 51997 b
	10518	+	SB1963 Enrolled - 295 - LRB103 25648 HLH 51997 b
	10519	+	1 Department of Commerce and Economic Opportunity shall notify
	10520	+	2 the Department of Revenue of the certification. The Department
	10521	+	3 of Revenue shall notify the public utilities of the exemption
	10522	+	4 status of business enterprises from the tax or pass-on charges
	10523	+	5 of State utility taxes. The exemption status shall take effect
	10524	+	6 within 3 months after certification of the business
	10525	+	7 enterprise.
	10526	+	8 (Source: P.A. 102-1125, eff. 2-3-23.)
	10527	+	9 ARTICLE 50. INVESTMENT PARTNERSHIPS
	10528	+	10 Section 50-5. The Illinois Income Tax Act is amended by
	10529	+	11 changing Sections 709.5 and 1501 as follows:
	10530	+	12 (35 ILCS 5/709.5)
	10531	+	13 Sec. 709.5. Withholding by partnerships, Subchapter S
	10532	+	14 corporations, and trusts.
	10533	+	15 (a) In general. For each taxable year ending on or after
	10534	+	16 December 31, 2008, every partnership (other than a publicly
	10535	+	17 traded partnership under Section 7704 of the Internal Revenue
	10536	+	18 Code or investment partnership), Subchapter S corporation, and
	10537	+	19 trust must withhold from each nonresident partner,
	10538	+	20 shareholder, or beneficiary (other than a partner,
	10539	+	21 shareholder, or beneficiary who is exempt from tax under
	10540	+	22 Section 501(a) of the Internal Revenue Code or under Section
	10541	+	23 205 of this Act, who is included on a composite return filed by
	10542	+
	10543	+
	10544	+
	10545	+
	10546	+
	10547	+	SB1963 Enrolled - 295 - LRB103 25648 HLH 51997 b
	10548	+
	10549	+
	10550	+	SB1963 Enrolled- 296 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 296 - LRB103 25648 HLH 51997 b
	10551	+	SB1963 Enrolled - 296 - LRB103 25648 HLH 51997 b
	10552	+	1 the partnership or Subchapter S corporation for the taxable
	10553	+	2 year under subsection (f) of Section 502 of this Act), or who
	10554	+	3 is a retired partner, to the extent that partner's
	10555	+	4 distributions are exempt from tax under Section 203(a)(2)(F)
	10556	+	5 of this Act) an amount equal to the sum of (i) the share of
	10557	+	6 business income of the partnership, Subchapter S corporation,
	10558	+	7 or trust apportionable to Illinois plus (ii) for taxable years
	10559	+	8 ending on or after December 31, 2014, the share of nonbusiness
	10560	+	9 income of the partnership, Subchapter S corporation, or trust
	10561	+	10 allocated to Illinois under Section 303 of this Act (other
	10562	+	11 than an amount allocated to the commercial domicile of the
	10563	+	12 taxpayer under Section 303 of this Act) that is distributable
	10564	+	13 to that partner, shareholder, or beneficiary under Sections
	10565	+	14 702 and 704 and Subchapter S of the Internal Revenue Code,
	10566	+	15 whether or not distributed, (iii) multiplied by the applicable
	10567	+	16 rates of tax for that partner, shareholder, or beneficiary
	10568	+	17 under subsections (a) through (d) of Section 201 of this Act,
	10569	+	18 and (iv) net of the share of any credit under Article 2 of this
	10570	+	19 Act that is distributable by the partnership, Subchapter S
	10571	+	20 corporation, or trust and allowable against the tax liability
	10572	+	21 of that partner, shareholder, or beneficiary for a taxable
	10573	+	22 year ending on or after December 31, 2014.
	10574	+	23 (b) Credit for taxes withheld. Any amount withheld under
	10575	+	24 subsection (a) of this Section and paid to the Department
	10576	+	25 shall be treated as a payment of the estimated tax liability or
	10577	+	26 of the liability for withholding under this Section of the
	10578	+
	10579	+
	10580	+
	10581	+
	10582	+
	10583	+	SB1963 Enrolled - 296 - LRB103 25648 HLH 51997 b
	10584	+
	10585	+
	10586	+	SB1963 Enrolled- 297 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 297 - LRB103 25648 HLH 51997 b
	10587	+	SB1963 Enrolled - 297 - LRB103 25648 HLH 51997 b
	10588	+	1 partner, shareholder, or beneficiary to whom the income is
	10589	+	2 distributable for the taxable year in which that person
	10590	+	3 incurred a liability under this Act with respect to that
	10591	+	4 income. The Department shall adopt rules pursuant to which a
	10592	+	5 partner, shareholder, or beneficiary may claim a credit
	10593	+	6 against its obligation for withholding under this Section for
	10594	+	7 amounts withheld under this Section with respect to income
	10595	+	8 distributable to it by a partnership, Subchapter S
	10596	+	9 corporation, or trust and allowing its partners, shareholders,
	10597	+	10 or beneficiaries to claim a credit under this subsection (b)
	10598	+	11 for those withheld amounts.
	10599	+	12 (c) Exemption from withholding.
	10600	+	13 (1) A partnership, Subchapter S corporation, or trust
	10601	+	14 shall not be required to withhold tax under subsection (a)
	10602	+	15 of this Section with respect to any nonresident partner,
	10603	+	16 shareholder, or beneficiary (other than an individual)
	10604	+	17 from whom the partnership, S corporation, or trust has
	10605	+	18 received a certificate, completed in the form and manner
	10606	+	19 prescribed by the Department, stating that such
	10607	+	20 nonresident partner, shareholder, or beneficiary shall:
	10608	+	21 (A) file all returns that the partner,
	10609	+	22 shareholder, or beneficiary is required to file under
	10610	+	23 Section 502 of this Act and make timely payment of all
	10611	+	24 taxes imposed under Section 201 of this Act or under
	10612	+	25 this Section on the partner, shareholder, or
	10613	+	26 beneficiary with respect to income of the partnership,
	10614	+
	10615	+
	10616	+
	10617	+
	10618	+
	10619	+	SB1963 Enrolled - 297 - LRB103 25648 HLH 51997 b
	10620	+
	10621	+
	10622	+	SB1963 Enrolled- 298 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 298 - LRB103 25648 HLH 51997 b
	10623	+	SB1963 Enrolled - 298 - LRB103 25648 HLH 51997 b
	10624	+	1 S corporation, or trust; and
	10625	+	2 (B) be subject to personal jurisdiction in this
	10626	+	3 State for purposes of the collection of income taxes,
	10627	+	4 together with related interest and penalties, imposed
	10628	+	5 on the partner, shareholder, or beneficiary with
	10629	+	6 respect to the income of the partnership, S
	10630	+	7 corporation, or trust.
	10631	+	8 (2) The Department may revoke the exemption provided
	10632	+	9 by this subsection (c) at any time that it determines that
	10633	+	10 the nonresident partner, shareholder, or beneficiary is
	10634	+	11 not abiding by the terms of the certificate. The
	10635	+	12 Department shall notify the partnership, S corporation, or
	10636	+	13 trust that it has revoked a certificate by notice left at
	10637	+	14 the usual place of business of the partnership, S
	10638	+	15 corporation, or trust or by mail to the last known address
	10639	+	16 of the partnership, S corporation, or trust.
	10640	+	17 (3) A partnership, S corporation, or trust that
	10641	+	18 receives a certificate under this subsection (c) properly
	10642	+	19 completed by a nonresident partner, shareholder, or
	10643	+	20 beneficiary shall not be required to withhold any amount
	10644	+	21 from that partner, shareholder, or beneficiary, the
	10645	+	22 payment of which would be due under Section 711(a-5) of
	10646	+	23 this Act after the receipt of the certificate and no
	10647	+	24 earlier than 60 days after the Department has notified the
	10648	+	25 partnership, S corporation, or trust that the certificate
	10649	+	26 has been revoked.
	10650	+
	10651	+
	10652	+
	10653	+
	10654	+
	10655	+	SB1963 Enrolled - 298 - LRB103 25648 HLH 51997 b
	10656	+
	10657	+
	10658	+	SB1963 Enrolled- 299 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 299 - LRB103 25648 HLH 51997 b
	10659	+	SB1963 Enrolled - 299 - LRB103 25648 HLH 51997 b
	10660	+	1 (4) Certificates received by a partnership, S
	10661	+	2 corporation, or trust under this subsection (c) must be
	10662	+	3 retained by the partnership, S corporation, or trust and a
	10663	+	4 record of such certificates must be provided to the
	10664	+	5 Department, in a format in which the record is available
	10665	+	6 for review by the Department, upon request by the
	10666	+	7 Department. The Department may, by rule, require the
	10667	+	8 record of certificates to be maintained and provided to
	10668	+	9 the Department electronically.
	10669	+	10 (d) For taxable years ending on and after December 31,
	10670	+	11 2023, every investment partnership, as defined in Section 1501
	10671	+	12 of this Act, shall withhold from each nonresident partner
	10672	+	13 (other than a partner who is exempt from tax under Section
	10673	+	14 501(a) of the Internal Revenue Code or under Section 205 of
	10674	+	15 this Act, or who is a retired partner, to the extent that
	10675	+	16 partner's distributions are exempt from tax under Section
	10676	+	17 203(a)(2)(F) of this Act) an amount calculated as follows:
	10677	+	18 (1) the sum of (i) the share of income that, but for
	10678	+	19 the provisions of subsection (c-5) of Section 305 of this
	10679	+	20 Act, would be apportioned to Illinois by the investment
	10680	+	21 partnership under subsection (a) of Section 305 of this
	10681	+	22 Act and (ii) the share of nonbusiness income that, but for
	10682	+	23 the provisions of subsection (c-5) of Section 305 of this
	10683	+	24 Act, would be allocated to Illinois by the investment
	10684	+	25 partnership under subsection (b) of Sections 305 and
	10685	+	26 Section 303 of this Act (other than an amount allocated to
	10686	+
	10687	+
	10688	+
	10689	+
	10690	+
	10691	+	SB1963 Enrolled - 299 - LRB103 25648 HLH 51997 b
	10692	+
	10693	+
	10694	+	SB1963 Enrolled- 300 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 300 - LRB103 25648 HLH 51997 b
	10695	+	SB1963 Enrolled - 300 - LRB103 25648 HLH 51997 b
	10696	+	1 the commercial domicile of the taxpayer under Section 303
	10697	+	2 of this Act) that is distributable to that partner under
	10698	+	3 Sections 702 and 704 of the Internal Revenue Code, whether
	10699	+	4 or not distributed; multiplied by
	10700	+	5 (2) the applicable rates of tax for that partner under
	10701	+	6 subsections (a) through (d) of Section 201 of this Act
	10702	+	7 (except that, if the partner is a partnership or
	10703	+	8 subchapter S corporation, the rate shall be equal to the
	10704	+	9 rate imposed on individuals under subsection (b) of
	10705	+	10 Section 201 of this Act); and
	10706	+	11 (3) net of the investment partnership's distributive
	10707	+	12 share of any credit under Article 2 of this Act that is
	10708	+	13 distributable by the partnership and first allowable
	10709	+	14 against the tax liability of that partner for a taxable
	10710	+	15 year ending on or after December 31, 2023.
	10711	+	16 Except to the extent that the income of the investment
	10712	+	17 partnership is business income in the hands of the partner
	10713	+	18 under subsection (c-5) of Section 305 of this Act, no credit
	10714	+	19 for taxes withheld shall be allowed under subsection (b) of
	10715	+	20 this Section for amounts withheld under this subsection.
	10716	+	21 The provisions of subsection (c) of this Section, allowing
	10717	+	22 for exemption from withholding, shall not apply for purposes
	10718	+	23 of this subsection.
	10719	+	24 (Source: P.A. 100-201, eff. 8-18-17.)
	10720	+	25 (35 ILCS 5/1501) (from Ch. 120, par. 15-1501)
	10721	+
	10722	+
	10723	+
	10724	+
	10725	+
	10726	+	SB1963 Enrolled - 300 - LRB103 25648 HLH 51997 b
	10727	+
	10728	+
	10729	+	SB1963 Enrolled- 301 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 301 - LRB103 25648 HLH 51997 b
	10730	+	SB1963 Enrolled - 301 - LRB103 25648 HLH 51997 b
	10731	+	1 Sec. 1501. Definitions.
	10732	+	2 (a) In general. When used in this Act, where not otherwise
	10733	+	3 distinctly expressed or manifestly incompatible with the
	10734	+	4 intent thereof:
	10735	+	5 (1) Business income. The term "business income" means
	10736	+	6 all income that may be treated as apportionable business
	10737	+	7 income under the Constitution of the United States.
	10738	+	8 Business income is net of the deductions allocable
	10739	+	9 thereto. Such term does not include compensation or the
	10740	+	10 deductions allocable thereto. For each taxable year
	10741	+	11 beginning on or after January 1, 2003, a taxpayer may
	10742	+	12 elect to treat all income other than compensation as
	10743	+	13 business income. This election shall be made in accordance
	10744	+	14 with rules adopted by the Department and, once made, shall
	10745	+	15 be irrevocable.
	10746	+	16 (1.5) Captive real estate investment trust:
	10747	+	17 (A) The term "captive real estate investment
	10748	+	18 trust" means a corporation, trust, or association:
	10749	+	19 (i) that is considered a real estate
	10750	+	20 investment trust for the taxable year under
	10751	+	21 Section 856 of the Internal Revenue Code;
	10752	+	22 (ii) the certificates of beneficial interest
	10753	+	23 or shares of which are not regularly traded on an
	10754	+	24 established securities market; and
	10755	+	25 (iii) of which more than 50% of the voting
	10756	+	26 power or value of the beneficial interest or
	10757	+
	10758	+
	10759	+
	10760	+
	10761	+
	10762	+	SB1963 Enrolled - 301 - LRB103 25648 HLH 51997 b
	10763	+
	10764	+
	10765	+	SB1963 Enrolled- 302 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 302 - LRB103 25648 HLH 51997 b
	10766	+	SB1963 Enrolled - 302 - LRB103 25648 HLH 51997 b
	10767	+	1 shares, at any time during the last half of the
	10768	+	2 taxable year, is owned or controlled, directly,
	10769	+	3 indirectly, or constructively, by a single
	10770	+	4 corporation.
	10771	+	5 (B) The term "captive real estate investment
	10772	+	6 trust" does not include:
	10773	+	7 (i) a real estate investment trust of which
	10774	+	8 more than 50% of the voting power or value of the
	10775	+	9 beneficial interest or shares is owned or
	10776	+	10 controlled, directly, indirectly, or
	10777	+	11 constructively, by:
	10778	+	12 (a) a real estate investment trust, other
	10779	+	13 than a captive real estate investment trust;
	10780	+	14 (b) a person who is exempt from taxation
	10781	+	15 under Section 501 of the Internal Revenue
	10782	+	16 Code, and who is not required to treat income
	10783	+	17 received from the real estate investment trust
	10784	+	18 as unrelated business taxable income under
	10785	+	19 Section 512 of the Internal Revenue Code;
	10786	+	20 (c) a listed Australian property trust, if
	10787	+	21 no more than 50% of the voting power or value
	10788	+	22 of the beneficial interest or shares of that
	10789	+	23 trust, at any time during the last half of the
	10790	+	24 taxable year, is owned or controlled, directly
	10791	+	25 or indirectly, by a single person;
	10792	+	26 (d) an entity organized as a trust,
	10793	+
	10794	+
	10795	+
	10796	+
	10797	+
	10798	+	SB1963 Enrolled - 302 - LRB103 25648 HLH 51997 b
	10799	+
	10800	+
	10801	+	SB1963 Enrolled- 303 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 303 - LRB103 25648 HLH 51997 b
	10802	+	SB1963 Enrolled - 303 - LRB103 25648 HLH 51997 b
	10803	+	1 provided a listed Australian property trust
	10804	+	2 described in subparagraph (c) owns or
	10805	+	3 controls, directly or indirectly, or
	10806	+	4 constructively, 75% or more of the voting
	10807	+	5 power or value of the beneficial interests or
	10808	+	6 shares of such entity; or
	10809	+	7 (e) an entity that is organized outside of
	10810	+	8 the laws of the United States and that
	10811	+	9 satisfies all of the following criteria:
	10812	+	10 (1) at least 75% of the entity's total
	10813	+	11 asset value at the close of its taxable
	10814	+	12 year is represented by real estate assets
	10815	+	13 (as defined in Section 856(c)(5)(B) of the
	10816	+	14 Internal Revenue Code, thereby including
	10817	+	15 shares or certificates of beneficial
	10818	+	16 interest in any real estate investment
	10819	+	17 trust), cash and cash equivalents, and
	10820	+	18 U.S. Government securities;
	10821	+	19 (2) the entity is not subject to tax
	10822	+	20 on amounts that are distributed to its
	10823	+	21 beneficial owners or is exempt from
	10824	+	22 entity-level taxation;
	10825	+	23 (3) the entity distributes at least
	10826	+	24 85% of its taxable income (as computed in
	10827	+	25 the jurisdiction in which it is organized)
	10828	+	26 to the holders of its shares or
	10829	+
	10830	+
	10831	+
	10832	+
	10833	+
	10834	+	SB1963 Enrolled - 303 - LRB103 25648 HLH 51997 b
	10835	+
	10836	+
	10837	+	SB1963 Enrolled- 304 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 304 - LRB103 25648 HLH 51997 b
	10838	+	SB1963 Enrolled - 304 - LRB103 25648 HLH 51997 b
	10839	+	1 certificates of beneficial interest on an
	10840	+	2 annual basis;
	10841	+	3 (4) either (i) the shares or
	10842	+	4 beneficial interests of the entity are
	10843	+	5 regularly traded on an established
	10844	+	6 securities market or (ii) not more than
	10845	+	7 10% of the voting power or value in the
	10846	+	8 entity is held, directly, indirectly, or
	10847	+	9 constructively, by a single entity or
	10848	+	10 individual; and
	10849	+	11 (5) the entity is organized in a
	10850	+	12 country that has entered into a tax treaty
	10851	+	13 with the United States; or
	10852	+	14 (ii) during its first taxable year for which
	10853	+	15 it elects to be treated as a real estate
	10854	+	16 investment trust under Section 856(c)(1) of the
	10855	+	17 Internal Revenue Code, a real estate investment
	10856	+	18 trust the certificates of beneficial interest or
	10857	+	19 shares of which are not regularly traded on an
	10858	+	20 established securities market, but only if the
	10859	+	21 certificates of beneficial interest or shares of
	10860	+	22 the real estate investment trust are regularly
	10861	+	23 traded on an established securities market prior
	10862	+	24 to the earlier of the due date (including
	10863	+	25 extensions) for filing its return under this Act
	10864	+	26 for that first taxable year or the date it
	10865	+
	10866	+
	10867	+
	10868	+
	10869	+
	10870	+	SB1963 Enrolled - 304 - LRB103 25648 HLH 51997 b
	10871	+
	10872	+
	10873	+	SB1963 Enrolled- 305 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 305 - LRB103 25648 HLH 51997 b
	10874	+	SB1963 Enrolled - 305 - LRB103 25648 HLH 51997 b
	10875	+	1 actually files that return.
	10876	+	2 (C) For the purposes of this subsection (1.5), the
	10877	+	3 constructive ownership rules prescribed under Section
	10878	+	4 318(a) of the Internal Revenue Code, as modified by
	10879	+	5 Section 856(d)(5) of the Internal Revenue Code, apply
	10880	+	6 in determining the ownership of stock, assets, or net
	10881	+	7 profits of any person.
	10882	+	8 (D) For the purposes of this item (1.5), for
	10883	+	9 taxable years ending on or after August 16, 2007, the
	10884	+	10 voting power or value of the beneficial interest or
	10885	+	11 shares of a real estate investment trust does not
	10886	+	12 include any voting power or value of beneficial
	10887	+	13 interest or shares in a real estate investment trust
	10888	+	14 held directly or indirectly in a segregated asset
	10889	+	15 account by a life insurance company (as described in
	10890	+	16 Section 817 of the Internal Revenue Code) to the
	10891	+	17 extent such voting power or value is for the benefit of
	10892	+	18 entities or persons who are either immune from
	10893	+	19 taxation or exempt from taxation under subtitle A of
	10894	+	20 the Internal Revenue Code.
	10895	+	21 (2) Commercial domicile. The term "commercial
	10896	+	22 domicile" means the principal place from which the trade
	10897	+	23 or business of the taxpayer is directed or managed.
	10898	+	24 (3) Compensation. The term "compensation" means wages,
	10899	+	25 salaries, commissions and any other form of remuneration
	10900	+	26 paid to employees for personal services.
	10901	+
	10902	+
	10903	+
	10904	+
	10905	+
	10906	+	SB1963 Enrolled - 305 - LRB103 25648 HLH 51997 b
	10907	+
	10908	+
	10909	+	SB1963 Enrolled- 306 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 306 - LRB103 25648 HLH 51997 b
	10910	+	SB1963 Enrolled - 306 - LRB103 25648 HLH 51997 b
	10911	+	1 (4) Corporation. The term "corporation" includes
	10912	+	2 associations, joint-stock companies, insurance companies
	10913	+	3 and cooperatives. Any entity, including a limited
	10914	+	4 liability company formed under the Illinois Limited
	10915	+	5 Liability Company Act, shall be treated as a corporation
	10916	+	6 if it is so classified for federal income tax purposes.
	10917	+	7 (5) Department. The term "Department" means the
	10918	+	8 Department of Revenue of this State.
	10919	+	9 (6) Director. The term "Director" means the Director
	10920	+	10 of Revenue of this State.
	10921	+	11 (7) Fiduciary. The term "fiduciary" means a guardian,
	10922	+	12 trustee, executor, administrator, receiver, or any person
	10923	+	13 acting in any fiduciary capacity for any person.
	10924	+	14 (8) Financial organization.
	10925	+	15 (A) The term "financial organization" means any
	10926	+	16 bank, bank holding company, trust company, savings
	10927	+	17 bank, industrial bank, land bank, safe deposit
	10928	+	18 company, private banker, savings and loan association,
	10929	+	19 building and loan association, credit union, currency
	10930	+	20 exchange, cooperative bank, small loan company, sales
	10931	+	21 finance company, investment company, or any person
	10932	+	22 which is owned by a bank or bank holding company. For
	10933	+	23 the purpose of this Section a "person" will include
	10934	+	24 only those persons which a bank holding company may
	10935	+	25 acquire and hold an interest in, directly or
	10936	+	26 indirectly, under the provisions of the Bank Holding
	10937	+
	10938	+
	10939	+
	10940	+
	10941	+
	10942	+	SB1963 Enrolled - 306 - LRB103 25648 HLH 51997 b
	10943	+
	10944	+
	10945	+	SB1963 Enrolled- 307 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 307 - LRB103 25648 HLH 51997 b
	10946	+	SB1963 Enrolled - 307 - LRB103 25648 HLH 51997 b
	10947	+	1 Company Act of 1956 (12 U.S.C. 1841, et seq.), except
	10948	+	2 where interests in any person must be disposed of
	10949	+	3 within certain required time limits under the Bank
	10950	+	4 Holding Company Act of 1956.
	10951	+	5 (B) For purposes of subparagraph (A) of this
	10952	+	6 paragraph, the term "bank" includes (i) any entity
	10953	+	7 that is regulated by the Comptroller of the Currency
	10954	+	8 under the National Bank Act, or by the Federal Reserve
	10955	+	9 Board, or by the Federal Deposit Insurance Corporation
	10956	+	10 and (ii) any federally or State chartered bank
	10957	+	11 operating as a credit card bank.
	10958	+	12 (C) For purposes of subparagraph (A) of this
	10959	+	13 paragraph, the term "sales finance company" has the
	10960	+	14 meaning provided in the following item (i) or (ii):
	10961	+	15 (i) A person primarily engaged in one or more
	10962	+	16 of the following businesses: the business of
	10963	+	17 purchasing customer receivables, the business of
	10964	+	18 making loans upon the security of customer
	10965	+	19 receivables, the business of making loans for the
	10966	+	20 express purpose of funding purchases of tangible
	10967	+	21 personal property or services by the borrower, or
	10968	+	22 the business of finance leasing. For purposes of
	10969	+	23 this item (i), "customer receivable" means:
	10970	+	24 (a) a retail installment contract or
	10971	+	25 retail charge agreement within the meaning of
	10972	+	26 the Sales Finance Agency Act, the Retail
	10973	+
	10974	+
	10975	+
	10976	+
	10977	+
	10978	+	SB1963 Enrolled - 307 - LRB103 25648 HLH 51997 b
	10979	+
	10980	+
	10981	+	SB1963 Enrolled- 308 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 308 - LRB103 25648 HLH 51997 b
	10982	+	SB1963 Enrolled - 308 - LRB103 25648 HLH 51997 b
	10983	+	1 Installment Sales Act, or the Motor Vehicle
	10984	+	2 Retail Installment Sales Act;
	10985	+	3 (b) an installment, charge, credit, or
	10986	+	4 similar contract or agreement arising from the
	10987	+	5 sale of tangible personal property or services
	10988	+	6 in a transaction involving a deferred payment
	10989	+	7 price payable in one or more installments
	10990	+	8 subsequent to the sale; or
	10991	+	9 (c) the outstanding balance of a contract
	10992	+	10 or agreement described in provisions (a) or
	10993	+	11 (b) of this item (i).
	10994	+	12 A customer receivable need not provide for
	10995	+	13 payment of interest on deferred payments. A sales
	10996	+	14 finance company may purchase a customer receivable
	10997	+	15 from, or make a loan secured by a customer
	10998	+	16 receivable to, the seller in the original
	10999	+	17 transaction or to a person who purchased the
	11000	+	18 customer receivable directly or indirectly from
	11001	+	19 that seller.
	11002	+	20 (ii) A corporation meeting each of the
	11003	+	21 following criteria:
	11004	+	22 (a) the corporation must be a member of an
	11005	+	23 "affiliated group" within the meaning of
	11006	+	24 Section 1504(a) of the Internal Revenue Code,
	11007	+	25 determined without regard to Section 1504(b)
	11008	+	26 of the Internal Revenue Code;
	11009	+
	11010	+
	11011	+
	11012	+
	11013	+
	11014	+	SB1963 Enrolled - 308 - LRB103 25648 HLH 51997 b
	11015	+
	11016	+
	11017	+	SB1963 Enrolled- 309 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 309 - LRB103 25648 HLH 51997 b
	11018	+	SB1963 Enrolled - 309 - LRB103 25648 HLH 51997 b
	11019	+	1 (b) more than 50% of the gross income of
	11020	+	2 the corporation for the taxable year must be
	11021	+	3 interest income derived from qualifying loans.
	11022	+	4 A "qualifying loan" is a loan made to a member
	11023	+	5 of the corporation's affiliated group that
	11024	+	6 originates customer receivables (within the
	11025	+	7 meaning of item (i)) or to whom customer
	11026	+	8 receivables originated by a member of the
	11027	+	9 affiliated group have been transferred, to the
	11028	+	10 extent the average outstanding balance of
	11029	+	11 loans from that corporation to members of its
	11030	+	12 affiliated group during the taxable year do
	11031	+	13 not exceed the limitation amount for that
	11032	+	14 corporation. The "limitation amount" for a
	11033	+	15 corporation is the average outstanding
	11034	+	16 balances during the taxable year of customer
	11035	+	17 receivables (within the meaning of item (i))
	11036	+	18 originated by all members of the affiliated
	11037	+	19 group. If the average outstanding balances of
	11038	+	20 the loans made by a corporation to members of
	11039	+	21 its affiliated group exceed the limitation
	11040	+	22 amount, the interest income of that
	11041	+	23 corporation from qualifying loans shall be
	11042	+	24 equal to its interest income from loans to
	11043	+	25 members of its affiliated groups times a
	11044	+	26 fraction equal to the limitation amount
	11045	+
	11046	+
	11047	+
	11048	+
	11049	+
	11050	+	SB1963 Enrolled - 309 - LRB103 25648 HLH 51997 b
	11051	+
	11052	+
	11053	+	SB1963 Enrolled- 310 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 310 - LRB103 25648 HLH 51997 b
	11054	+	SB1963 Enrolled - 310 - LRB103 25648 HLH 51997 b
	11055	+	1 divided by the average outstanding balances of
	11056	+	2 the loans made by that corporation to members
	11057	+	3 of its affiliated group;
	11058	+	4 (c) the total of all shareholder's equity
	11059	+	5 (including, without limitation, paid-in
	11060	+	6 capital on common and preferred stock and
	11061	+	7 retained earnings) of the corporation plus the
	11062	+	8 total of all of its loans, advances, and other
	11063	+	9 obligations payable or owed to members of its
	11064	+	10 affiliated group may not exceed 20% of the
	11065	+	11 total assets of the corporation at any time
	11066	+	12 during the tax year; and
	11067	+	13 (d) more than 50% of all interest-bearing
	11068	+	14 obligations of the affiliated group payable to
	11069	+	15 persons outside the group determined in
	11070	+	16 accordance with generally accepted accounting
	11071	+	17 principles must be obligations of the
	11072	+	18 corporation.
	11073	+	19 This amendatory Act of the 91st General Assembly
	11074	+	20 is declaratory of existing law.
	11075	+	21 (D) Subparagraphs (B) and (C) of this paragraph
	11076	+	22 are declaratory of existing law and apply
	11077	+	23 retroactively, for all tax years beginning on or
	11078	+	24 before December 31, 1996, to all original returns, to
	11079	+	25 all amended returns filed no later than 30 days after
	11080	+	26 the effective date of this amendatory Act of 1996, and
	11081	+
	11082	+
	11083	+
	11084	+
	11085	+
	11086	+	SB1963 Enrolled - 310 - LRB103 25648 HLH 51997 b
	11087	+
	11088	+
	11089	+	SB1963 Enrolled- 311 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 311 - LRB103 25648 HLH 51997 b
	11090	+	SB1963 Enrolled - 311 - LRB103 25648 HLH 51997 b
	11091	+	1 to all notices issued on or before the effective date
	11092	+	2 of this amendatory Act of 1996 under subsection (a) of
	11093	+	3 Section 903, subsection (a) of Section 904, subsection
	11094	+	4 (e) of Section 909, or Section 912. A taxpayer that is
	11095	+	5 a "financial organization" that engages in any
	11096	+	6 transaction with an affiliate shall be a "financial
	11097	+	7 organization" for all purposes of this Act.
	11098	+	8 (E) For all tax years beginning on or before
	11099	+	9 December 31, 1996, a taxpayer that falls within the
	11100	+	10 definition of a "financial organization" under
	11101	+	11 subparagraphs (B) or (C) of this paragraph, but who
	11102	+	12 does not fall within the definition of a "financial
	11103	+	13 organization" under the Proposed Regulations issued by
	11104	+	14 the Department of Revenue on July 19, 1996, may
	11105	+	15 irrevocably elect to apply the Proposed Regulations
	11106	+	16 for all of those years as though the Proposed
	11107	+	17 Regulations had been lawfully promulgated, adopted,
	11108	+	18 and in effect for all of those years. For purposes of
	11109	+	19 applying subparagraphs (B) or (C) of this paragraph to
	11110	+	20 all of those years, the election allowed by this
	11111	+	21 subparagraph applies only to the taxpayer making the
	11112	+	22 election and to those members of the taxpayer's
	11113	+	23 unitary business group who are ordinarily required to
	11114	+	24 apportion business income under the same subsection of
	11115	+	25 Section 304 of this Act as the taxpayer making the
	11116	+	26 election. No election allowed by this subparagraph
	11117	+
	11118	+
	11119	+
	11120	+
	11121	+
	11122	+	SB1963 Enrolled - 311 - LRB103 25648 HLH 51997 b
	11123	+
	11124	+
	11125	+	SB1963 Enrolled- 312 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 312 - LRB103 25648 HLH 51997 b
	11126	+	SB1963 Enrolled - 312 - LRB103 25648 HLH 51997 b
	11127	+	1 shall be made under a claim filed under subsection (d)
	11128	+	2 of Section 909 more than 30 days after the effective
	11129	+	3 date of this amendatory Act of 1996.
	11130	+	4 (F) Finance Leases. For purposes of this
	11131	+	5 subsection, a finance lease shall be treated as a loan
	11132	+	6 or other extension of credit, rather than as a lease,
	11133	+	7 regardless of how the transaction is characterized for
	11134	+	8 any other purpose, including the purposes of any
	11135	+	9 regulatory agency to which the lessor is subject. A
	11136	+	10 finance lease is any transaction in the form of a lease
	11137	+	11 in which the lessee is treated as the owner of the
	11138	+	12 leased asset entitled to any deduction for
	11139	+	13 depreciation allowed under Section 167 of the Internal
	11140	+	14 Revenue Code.
	11141	+	15 (9) Fiscal year. The term "fiscal year" means an
	11142	+	16 accounting period of 12 months ending on the last day of
	11143	+	17 any month other than December.
	11144	+	18 (9.5) Fixed place of business. The term "fixed place
	11145	+	19 of business" has the same meaning as that term is given in
	11146	+	20 Section 864 of the Internal Revenue Code and the related
	11147	+	21 Treasury regulations.
	11148	+	22 (10) Includes and including. The terms "includes" and
	11149	+	23 "including" when used in a definition contained in this
	11150	+	24 Act shall not be deemed to exclude other things otherwise
	11151	+	25 within the meaning of the term defined.
	11152	+	26 (11) Internal Revenue Code. The term "Internal Revenue
	11153	+
	11154	+
	11155	+
	11156	+
	11157	+
	11158	+	SB1963 Enrolled - 312 - LRB103 25648 HLH 51997 b
	11159	+
	11160	+
	11161	+	SB1963 Enrolled- 313 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 313 - LRB103 25648 HLH 51997 b
	11162	+	SB1963 Enrolled - 313 - LRB103 25648 HLH 51997 b
	11163	+	1 Code" means the United States Internal Revenue Code of
	11164	+	2 1954 or any successor law or laws relating to federal
	11165	+	3 income taxes in effect for the taxable year.
	11166	+	4 (11.5) Investment partnership.
	11167	+	5 (A) For tax years ending before December 31, 2023,
	11168	+	6 the The term "investment partnership" means any entity
	11169	+	7 that is treated as a partnership for federal income
	11170	+	8 tax purposes that meets the following requirements:
	11171	+	9 (i) no less than 90% of the partnership's cost
	11172	+	10 of its total assets consists of qualifying
	11173	+	11 investment securities, deposits at banks or other
	11174	+	12 financial institutions, and office space and
	11175	+	13 equipment reasonably necessary to carry on its
	11176	+	14 activities as an investment partnership;
	11177	+	15 (ii) no less than 90% of its gross income
	11178	+	16 consists of interest, dividends, and gains from
	11179	+	17 the sale or exchange of qualifying investment
	11180	+	18 securities; and
	11181	+	19 (iii) the partnership is not a dealer in
	11182	+	20 qualifying investment securities.
	11183	+	21 (A-5) For tax years ending on or after December
	11184	+	22 31, 2023, the term "investment partnership" means any
	11185	+	23 entity that is treated as a partnership for federal
	11186	+	24 income tax purposes that meets the following
	11187	+	25 requirements:
	11188	+	26 (i) no less than 90% of the partnership's cost
	11189	+
	11190	+
	11191	+
	11192	+
	11193	+
	11194	+	SB1963 Enrolled - 313 - LRB103 25648 HLH 51997 b
	11195	+
	11196	+
	11197	+	SB1963 Enrolled- 314 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 314 - LRB103 25648 HLH 51997 b
	11198	+	SB1963 Enrolled - 314 - LRB103 25648 HLH 51997 b
	11199	+	1 of its total assets consists of qualifying
	11200	+	2 investment securities, deposits at banks or other
	11201	+	3 financial institutions, and office space and
	11202	+	4 equipment reasonably necessary to carry on its
	11203	+	5 activities as an investment partnership; and
	11204	+	6 (ii) no less than 90% of its gross income
	11205	+	7 consists of interest, dividends, gains from the
	11206	+	8 sale or exchange of qualifying investment
	11207	+	9 securities, and the distributive share of
	11208	+	10 partnership income from lower-tier partnership
	11209	+	11 interests meeting the definition of qualifying
	11210	+	12 investment security under subparagraph (B)(xiii);
	11211	+	13 for the purposes of this subparagraph (ii), "gross
	11212	+	14 income" does not include income from partnerships
	11213	+	15 that are operating at a federal taxable loss.
	11214	+	16 (B) For purposes of this paragraph (11.5), the
	11215	+	17 term "qualifying investment securities" (other than,
	11216	+	18 for tax years ending on or after December 31, 2023,
	11217	+	19 securities with respect to which the taxpayer is
	11218	+	20 required to apply the rules of Internal Revenue Code
	11219	+	21 Section 475(a)) includes all of the following:
	11220	+	22 (i) common stock, including preferred or debt
	11221	+	23 securities convertible into common stock, and
	11222	+	24 preferred stock;
	11223	+	25 (ii) bonds, debentures, and other debt
	11224	+	26 securities;
	11225	+
	11226	+
	11227	+
	11228	+
	11229	+
	11230	+	SB1963 Enrolled - 314 - LRB103 25648 HLH 51997 b
	11231	+
	11232	+
	11233	+	SB1963 Enrolled- 315 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 315 - LRB103 25648 HLH 51997 b
	11234	+	SB1963 Enrolled - 315 - LRB103 25648 HLH 51997 b
	11235	+	1 (iii) foreign and domestic currency deposits
	11236	+	2 secured by federal, state, or local governmental
	11237	+	3 agencies;
	11238	+	4 (iv) mortgage or asset-backed securities
	11239	+	5 secured by federal, state, or local governmental
	11240	+	6 agencies;
	11241	+	7 (v) repurchase agreements and loan
	11242	+	8 participations;
	11243	+	9 (vi) foreign currency exchange contracts and
	11244	+	10 forward and futures contracts on foreign
	11245	+	11 currencies;
	11246	+	12 (vii) stock and bond index securities and
	11247	+	13 futures contracts and other similar financial
	11248	+	14 securities and futures contracts on those
	11249	+	15 securities;
	11250	+	16 (viii) options for the purchase or sale of any
	11251	+	17 of the securities, currencies, contracts, or
	11252	+	18 financial instruments described in items (i) to
	11253	+	19 (vii), inclusive;
	11254	+	20 (ix) regulated futures contracts;
	11255	+	21 (x) commodities (not described in Section
	11256	+	22 1221(a)(1) of the Internal Revenue Code) or
	11257	+	23 futures, forwards, and options with respect to
	11258	+	24 such commodities, provided, however, that any item
	11259	+	25 of a physical commodity to which title is actually
	11260	+	26 acquired in the partnership's capacity as a dealer
	11261	+
	11262	+
	11263	+
	11264	+
	11265	+
	11266	+	SB1963 Enrolled - 315 - LRB103 25648 HLH 51997 b
	11267	+
	11268	+
	11269	+	SB1963 Enrolled- 316 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 316 - LRB103 25648 HLH 51997 b
	11270	+	SB1963 Enrolled - 316 - LRB103 25648 HLH 51997 b
	11271	+	1 in such commodity shall not be a qualifying
	11272	+	2 investment security;
	11273	+	3 (xi) derivatives; and
	11274	+	4 (xii) a partnership interest in another
	11275	+	5 partnership that is an investment partnership; and
	11276	+	6 .
	11277	+	7 (xiii) for tax years ending on or after
	11278	+	8 December 31, 2023, a partnership interest that, in
	11279	+	9 the hands of the partnership, qualifies as a
	11280	+	10 security within the meaning of subsection (a)(1)
	11281	+	11 of Subchapter 77b of Chapter 2A of Title 15 of the
	11282	+	12 United States Code.
	11283	+	13 (12) Mathematical error. The term "mathematical error"
	11284	+	14 includes the following types of errors, omissions, or
	11285	+	15 defects in a return filed by a taxpayer which prevents
	11286	+	16 acceptance of the return as filed for processing:
	11287	+	17 (A) arithmetic errors or incorrect computations on
	11288	+	18 the return or supporting schedules;
	11289	+	19 (B) entries on the wrong lines;
	11290	+	20 (C) omission of required supporting forms or
	11291	+	21 schedules or the omission of the information in whole
	11292	+	22 or in part called for thereon; and
	11293	+	23 (D) an attempt to claim, exclude, deduct, or
	11294	+	24 improperly report, in a manner directly contrary to
	11295	+	25 the provisions of the Act and regulations thereunder
	11296	+	26 any item of income, exemption, deduction, or credit.
	11297	+
	11298	+
	11299	+
	11300	+
	11301	+
	11302	+	SB1963 Enrolled - 316 - LRB103 25648 HLH 51997 b
	11303	+
	11304	+
	11305	+	SB1963 Enrolled- 317 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 317 - LRB103 25648 HLH 51997 b
	11306	+	SB1963 Enrolled - 317 - LRB103 25648 HLH 51997 b
	11307	+	1 (13) Nonbusiness income. The term "nonbusiness income"
	11308	+	2 means all income other than business income or
	11309	+	3 compensation.
	11310	+	4 (14) Nonresident. The term "nonresident" means a
	11311	+	5 person who is not a resident.
	11312	+	6 (15) Paid, incurred and accrued. The terms "paid",
	11313	+	7 "incurred" and "accrued" shall be construed according to
	11314	+	8 the method of accounting upon the basis of which the
	11315	+	9 person's base income is computed under this Act.
	11316	+	10 (16) Partnership and partner. The term "partnership"
	11317	+	11 includes a syndicate, group, pool, joint venture or other
	11318	+	12 unincorporated organization, through or by means of which
	11319	+	13 any business, financial operation, or venture is carried
	11320	+	14 on, and which is not, within the meaning of this Act, a
	11321	+	15 trust or estate or a corporation; and the term "partner"
	11322	+	16 includes a member in such syndicate, group, pool, joint
	11323	+	17 venture or organization.
	11324	+	18 The term "partnership" includes any entity, including
	11325	+	19 a limited liability company formed under the Illinois
	11326	+	20 Limited Liability Company Act, classified as a partnership
	11327	+	21 for federal income tax purposes.
	11328	+	22 The term "partnership" does not include a syndicate,
	11329	+	23 group, pool, joint venture, or other unincorporated
	11330	+	24 organization established for the sole purpose of playing
	11331	+	25 the Illinois State Lottery.
	11332	+	26 (17) Part-year resident. The term "part-year resident"
	11333	+
	11334	+
	11335	+
	11336	+
	11337	+
	11338	+	SB1963 Enrolled - 317 - LRB103 25648 HLH 51997 b
	11339	+
	11340	+
	11341	+	SB1963 Enrolled- 318 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 318 - LRB103 25648 HLH 51997 b
	11342	+	SB1963 Enrolled - 318 - LRB103 25648 HLH 51997 b
	11343	+	1 means an individual who became a resident during the
	11344	+	2 taxable year or ceased to be a resident during the taxable
	11345	+	3 year. Under Section 1501(a)(20)(A)(i) residence commences
	11346	+	4 with presence in this State for other than a temporary or
	11347	+	5 transitory purpose and ceases with absence from this State
	11348	+	6 for other than a temporary or transitory purpose. Under
	11349	+	7 Section 1501(a)(20)(A)(ii) residence commences with the
	11350	+	8 establishment of domicile in this State and ceases with
	11351	+	9 the establishment of domicile in another State.
	11352	+	10 (18) Person. The term "person" shall be construed to
	11353	+	11 mean and include an individual, a trust, estate,
	11354	+	12 partnership, association, firm, company, corporation,
	11355	+	13 limited liability company, or fiduciary. For purposes of
	11356	+	14 Section 1301 and 1302 of this Act, a "person" means (i) an
	11357	+	15 individual, (ii) a corporation, (iii) an officer, agent,
	11358	+	16 or employee of a corporation, (iv) a member, agent or
	11359	+	17 employee of a partnership, or (v) a member, manager,
	11360	+	18 employee, officer, director, or agent of a limited
	11361	+	19 liability company who in such capacity commits an offense
	11362	+	20 specified in Section 1301 and 1302.
	11363	+	21 (18A) Records. The term "records" includes all data
	11364	+	22 maintained by the taxpayer, whether on paper, microfilm,
	11365	+	23 microfiche, or any type of machine-sensible data
	11366	+	24 compilation.
	11367	+	25 (19) Regulations. The term "regulations" includes
	11368	+	26 rules promulgated and forms prescribed by the Department.
	11369	+
	11370	+
	11371	+
	11372	+
	11373	+
	11374	+	SB1963 Enrolled - 318 - LRB103 25648 HLH 51997 b
	11375	+
	11376	+
	11377	+	SB1963 Enrolled- 319 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 319 - LRB103 25648 HLH 51997 b
	11378	+	SB1963 Enrolled - 319 - LRB103 25648 HLH 51997 b
	11379	+	1 (20) Resident. The term "resident" means:
	11380	+	2 (A) an individual (i) who is in this State for
	11381	+	3 other than a temporary or transitory purpose during
	11382	+	4 the taxable year; or (ii) who is domiciled in this
	11383	+	5 State but is absent from the State for a temporary or
	11384	+	6 transitory purpose during the taxable year;
	11385	+	7 (B) The estate of a decedent who at his or her
	11386	+	8 death was domiciled in this State;
	11387	+	9 (C) A trust created by a will of a decedent who at
	11388	+	10 his death was domiciled in this State; and
	11389	+	11 (D) An irrevocable trust, the grantor of which was
	11390	+	12 domiciled in this State at the time such trust became
	11391	+	13 irrevocable. For purpose of this subparagraph, a trust
	11392	+	14 shall be considered irrevocable to the extent that the
	11393	+	15 grantor is not treated as the owner thereof under
	11394	+	16 Sections 671 through 678 of the Internal Revenue Code.
	11395	+	17 (21) Sales. The term "sales" means all gross receipts
	11396	+	18 of the taxpayer not allocated under Sections 301, 302 and
	11397	+	19 303.
	11398	+	20 (22) State. The term "state" when applied to a
	11399	+	21 jurisdiction other than this State means any state of the
	11400	+	22 United States, the District of Columbia, the Commonwealth
	11401	+	23 of Puerto Rico, any Territory or Possession of the United
	11402	+	24 States, and any foreign country, or any political
	11403	+	25 subdivision of any of the foregoing. For purposes of the
	11404	+	26 foreign tax credit under Section 601, the term "state"
	11405	+
	11406	+
	11407	+
	11408	+
	11409	+
	11410	+	SB1963 Enrolled - 319 - LRB103 25648 HLH 51997 b
	11411	+
	11412	+
	11413	+	SB1963 Enrolled- 320 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 320 - LRB103 25648 HLH 51997 b
	11414	+	SB1963 Enrolled - 320 - LRB103 25648 HLH 51997 b
	11415	+	1 means any state of the United States, the District of
	11416	+	2 Columbia, the Commonwealth of Puerto Rico, and any
	11417	+	3 territory or possession of the United States, or any
	11418	+	4 political subdivision of any of the foregoing, effective
	11419	+	5 for tax years ending on or after December 31, 1989.
	11420	+	6 (23) Taxable year. The term "taxable year" means the
	11421	+	7 calendar year, or the fiscal year ending during such
	11422	+	8 calendar year, upon the basis of which the base income is
	11423	+	9 computed under this Act. "Taxable year" means, in the case
	11424	+	10 of a return made for a fractional part of a year under the
	11425	+	11 provisions of this Act, the period for which such return
	11426	+	12 is made.
	11427	+	13 (24) Taxpayer. The term "taxpayer" means any person
	11428	+	14 subject to the tax imposed by this Act.
	11429	+	15 (25) International banking facility. The term
	11430	+	16 international banking facility shall have the same meaning
	11431	+	17 as is set forth in the Illinois Banking Act or as is set
	11432	+	18 forth in the laws of the United States or regulations of
	11433	+	19 the Board of Governors of the Federal Reserve System.
	11434	+	20 (26) Income Tax Return Preparer.
	11435	+	21 (A) The term "income tax return preparer" means
	11436	+	22 any person who prepares for compensation, or who
	11437	+	23 employs one or more persons to prepare for
	11438	+	24 compensation, any return of tax imposed by this Act or
	11439	+	25 any claim for refund of tax imposed by this Act. The
	11440	+	26 preparation of a substantial portion of a return or
	11441	+
	11442	+
	11443	+
	11444	+
	11445	+
	11446	+	SB1963 Enrolled - 320 - LRB103 25648 HLH 51997 b
	11447	+
	11448	+
	11449	+	SB1963 Enrolled- 321 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 321 - LRB103 25648 HLH 51997 b
	11450	+	SB1963 Enrolled - 321 - LRB103 25648 HLH 51997 b
	11451	+	1 claim for refund shall be treated as the preparation
	11452	+	2 of that return or claim for refund.
	11453	+	3 (B) A person is not an income tax return preparer
	11454	+	4 if all he or she does is
	11455	+	5 (i) furnish typing, reproducing, or other
	11456	+	6 mechanical assistance;
	11457	+	7 (ii) prepare returns or claims for refunds for
	11458	+	8 the employer by whom he or she is regularly and
	11459	+	9 continuously employed;
	11460	+	10 (iii) prepare as a fiduciary returns or claims
	11461	+	11 for refunds for any person; or
	11462	+	12 (iv) prepare claims for refunds for a taxpayer
	11463	+	13 in response to any notice of deficiency issued to
	11464	+	14 that taxpayer or in response to any waiver of
	11465	+	15 restriction after the commencement of an audit of
	11466	+	16 that taxpayer or of another taxpayer if a
	11467	+	17 determination in the audit of the other taxpayer
	11468	+	18 directly or indirectly affects the tax liability
	11469	+	19 of the taxpayer whose claims he or she is
	11470	+	20 preparing.
	11471	+	21 (27) Unitary business group.
	11472	+	22 (A) The term "unitary business group" means a
	11473	+	23 group of persons related through common ownership
	11474	+	24 whose business activities are integrated with,
	11475	+	25 dependent upon and contribute to each other. The group
	11476	+	26 will not include those members whose business activity
	11477	+
	11478	+
	11479	+
	11480	+
	11481	+
	11482	+	SB1963 Enrolled - 321 - LRB103 25648 HLH 51997 b
	11483	+
	11484	+
	11485	+	SB1963 Enrolled- 322 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 322 - LRB103 25648 HLH 51997 b
	11486	+	SB1963 Enrolled - 322 - LRB103 25648 HLH 51997 b
	11487	+	1 outside the United States is 80% or more of any such
	11488	+	2 member's total business activity; for purposes of this
	11489	+	3 paragraph and clause (a)(3)(B)(ii) of Section 304,
	11490	+	4 business activity within the United States shall be
	11491	+	5 measured by means of the factors ordinarily applicable
	11492	+	6 under subsections (a), (b), (c), (d), or (h) of
	11493	+	7 Section 304 except that, in the case of members
	11494	+	8 ordinarily required to apportion business income by
	11495	+	9 means of the 3 factor formula of property, payroll and
	11496	+	10 sales specified in subsection (a) of Section 304,
	11497	+	11 including the formula as weighted in subsection (h) of
	11498	+	12 Section 304, such members shall not use the sales
	11499	+	13 factor in the computation and the results of the
	11500	+	14 property and payroll factor computations of subsection
	11501	+	15 (a) of Section 304 shall be divided by 2 (by one if
	11502	+	16 either the property or payroll factor has a
	11503	+	17 denominator of zero). The computation required by the
	11504	+	18 preceding sentence shall, in each case, involve the
	11505	+	19 division of the member's property, payroll, or revenue
	11506	+	20 miles in the United States, insurance premiums on
	11507	+	21 property or risk in the United States, or financial
	11508	+	22 organization business income from sources within the
	11509	+	23 United States, as the case may be, by the respective
	11510	+	24 worldwide figures for such items. Common ownership in
	11511	+	25 the case of corporations is the direct or indirect
	11512	+	26 control or ownership of more than 50% of the
	11513	+
	11514	+
	11515	+
	11516	+
	11517	+
	11518	+	SB1963 Enrolled - 322 - LRB103 25648 HLH 51997 b
	11519	+
	11520	+
	11521	+	SB1963 Enrolled- 323 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 323 - LRB103 25648 HLH 51997 b
	11522	+	SB1963 Enrolled - 323 - LRB103 25648 HLH 51997 b
	11523	+	1 outstanding voting stock of the persons carrying on
	11524	+	2 unitary business activity. Unitary business activity
	11525	+	3 can ordinarily be illustrated where the activities of
	11526	+	4 the members are: (1) in the same general line (such as
	11527	+	5 manufacturing, wholesaling, retailing of tangible
	11528	+	6 personal property, insurance, transportation or
	11529	+	7 finance); or (2) are steps in a vertically structured
	11530	+	8 enterprise or process (such as the steps involved in
	11531	+	9 the production of natural resources, which might
	11532	+	10 include exploration, mining, refining, and marketing);
	11533	+	11 and, in either instance, the members are functionally
	11534	+	12 integrated through the exercise of strong centralized
	11535	+	13 management (where, for example, authority over such
	11536	+	14 matters as purchasing, financing, tax compliance,
	11537	+	15 product line, personnel, marketing and capital
	11538	+	16 investment is not left to each member).
	11539	+	17 (B) In no event, for taxable years ending prior to
	11540	+	18 December 31, 2017, shall any unitary business group
	11541	+	19 include members which are ordinarily required to
	11542	+	20 apportion business income under different subsections
	11543	+	21 of Section 304 except that for tax years ending on or
	11544	+	22 after December 31, 1987 this prohibition shall not
	11545	+	23 apply to a holding company that would otherwise be a
	11546	+	24 member of a unitary business group with taxpayers that
	11547	+	25 apportion business income under any of subsections
	11548	+	26 (b), (c), (c-1), or (d) of Section 304. If a unitary
	11549	+
	11550	+
	11551	+
	11552	+
	11553	+
	11554	+	SB1963 Enrolled - 323 - LRB103 25648 HLH 51997 b
	11555	+
	11556	+
	11557	+	SB1963 Enrolled- 324 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 324 - LRB103 25648 HLH 51997 b
	11558	+	SB1963 Enrolled - 324 - LRB103 25648 HLH 51997 b
	11559	+	1 business group would, but for the preceding sentence,
	11560	+	2 include members that are ordinarily required to
	11561	+	3 apportion business income under different subsections
	11562	+	4 of Section 304, then for each subsection of Section
	11563	+	5 304 for which there are two or more members, there
	11564	+	6 shall be a separate unitary business group composed of
	11565	+	7 such members. For purposes of the preceding two
	11566	+	8 sentences, a member is "ordinarily required to
	11567	+	9 apportion business income" under a particular
	11568	+	10 subsection of Section 304 if it would be required to
	11569	+	11 use the apportionment method prescribed by such
	11570	+	12 subsection except for the fact that it derives
	11571	+	13 business income solely from Illinois. As used in this
	11572	+	14 paragraph, for taxable years ending before December
	11573	+	15 31, 2017, the phrase "United States" means only the 50
	11574	+	16 states and the District of Columbia, but does not
	11575	+	17 include any territory or possession of the United
	11576	+	18 States or any area over which the United States has
	11577	+	19 asserted jurisdiction or claimed exclusive rights with
	11578	+	20 respect to the exploration for or exploitation of
	11579	+	21 natural resources. For taxable years ending on or
	11580	+	22 after December 31, 2017, the phrase "United States",
	11581	+	23 as used in this paragraph, means only the 50 states,
	11582	+	24 the District of Columbia, and any area over which the
	11583	+	25 United States has asserted jurisdiction or claimed
	11584	+	26 exclusive rights with respect to the exploration for
	11585	+
	11586	+
	11587	+
	11588	+
	11589	+
	11590	+	SB1963 Enrolled - 324 - LRB103 25648 HLH 51997 b
	11591	+
	11592	+
	11593	+	SB1963 Enrolled- 325 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 325 - LRB103 25648 HLH 51997 b
	11594	+	SB1963 Enrolled - 325 - LRB103 25648 HLH 51997 b
	11595	+	1 or exploitation of natural resources, but does not
	11596	+	2 include any territory or possession of the United
	11597	+	3 States.
	11598	+	4 (C) Holding companies.
	11599	+	5 (i) For purposes of this subparagraph, a
	11600	+	6 "holding company" is a corporation (other than a
	11601	+	7 corporation that is a financial organization under
	11602	+	8 paragraph (8) of this subsection (a) of Section
	11603	+	9 1501 because it is a bank holding company under
	11604	+	10 the provisions of the Bank Holding Company Act of
	11605	+	11 1956 (12 U.S.C. 1841, et seq.) or because it is
	11606	+	12 owned by a bank or a bank holding company) that
	11607	+	13 owns a controlling interest in one or more other
	11608	+	14 taxpayers ("controlled taxpayers"); that, during
	11609	+	15 the period that includes the taxable year and the
	11610	+	16 2 immediately preceding taxable years or, if the
	11611	+	17 corporation was formed during the current or
	11612	+	18 immediately preceding taxable year, the taxable
	11613	+	19 years in which the corporation has been in
	11614	+	20 existence, derived substantially all its gross
	11615	+	21 income from dividends, interest, rents, royalties,
	11616	+	22 fees or other charges received from controlled
	11617	+	23 taxpayers for the provision of services, and gains
	11618	+	24 on the sale or other disposition of interests in
	11619	+	25 controlled taxpayers or in property leased or
	11620	+	26 licensed to controlled taxpayers or used by the
	11621	+
	11622	+
	11623	+
	11624	+
	11625	+
	11626	+	SB1963 Enrolled - 325 - LRB103 25648 HLH 51997 b
	11627	+
	11628	+
	11629	+	SB1963 Enrolled- 326 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 326 - LRB103 25648 HLH 51997 b
	11630	+	SB1963 Enrolled - 326 - LRB103 25648 HLH 51997 b
	11631	+	1 taxpayer in providing services to controlled
	11632	+	2 taxpayers; and that incurs no substantial expenses
	11633	+	3 other than expenses (including interest and other
	11634	+	4 costs of borrowing) incurred in connection with
	11635	+	5 the acquisition and holding of interests in
	11636	+	6 controlled taxpayers and in the provision of
	11637	+	7 services to controlled taxpayers or in the leasing
	11638	+	8 or licensing of property to controlled taxpayers.
	11639	+	9 (ii) The income of a holding company which is
	11640	+	10 a member of more than one unitary business group
	11641	+	11 shall be included in each unitary business group
	11642	+	12 of which it is a member on a pro rata basis, by
	11643	+	13 including in each unitary business group that
	11644	+	14 portion of the base income of the holding company
	11645	+	15 that bears the same proportion to the total base
	11646	+	16 income of the holding company as the gross
	11647	+	17 receipts of the unitary business group bears to
	11648	+	18 the combined gross receipts of all unitary
	11649	+	19 business groups (in both cases without regard to
	11650	+	20 the holding company) or on any other reasonable
	11651	+	21 basis, consistently applied.
	11652	+	22 (iii) A holding company shall apportion its
	11653	+	23 business income under the subsection of Section
	11654	+	24 304 used by the other members of its unitary
	11655	+	25 business group. The apportionment factors of a
	11656	+	26 holding company which would be a member of more
	11657	+
	11658	+
	11659	+
	11660	+
	11661	+
	11662	+	SB1963 Enrolled - 326 - LRB103 25648 HLH 51997 b
	11663	+
	11664	+
	11665	+	SB1963 Enrolled- 327 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 327 - LRB103 25648 HLH 51997 b
	11666	+	SB1963 Enrolled - 327 - LRB103 25648 HLH 51997 b
	11667	+	1 than one unitary business group shall be included
	11668	+	2 with the apportionment factors of each unitary
	11669	+	3 business group of which it is a member on a pro
	11670	+	4 rata basis using the same method used in clause
	11671	+	5 (ii).
	11672	+	6 (iv) The provisions of this subparagraph (C)
	11673	+	7 are intended to clarify existing law.
	11674	+	8 (D) If including the base income and factors of a
	11675	+	9 holding company in more than one unitary business
	11676	+	10 group under subparagraph (C) does not fairly reflect
	11677	+	11 the degree of integration between the holding company
	11678	+	12 and one or more of the unitary business groups, the
	11679	+	13 dependence of the holding company and one or more of
	11680	+	14 the unitary business groups upon each other, or the
	11681	+	15 contributions between the holding company and one or
	11682	+	16 more of the unitary business groups, the holding
	11683	+	17 company may petition the Director, under the
	11684	+	18 procedures provided under Section 304(f), for
	11685	+	19 permission to include all base income and factors of
	11686	+	20 the holding company only with members of a unitary
	11687	+	21 business group apportioning their business income
	11688	+	22 under one subsection of subsections (a), (b), (c), or
	11689	+	23 (d) of Section 304. If the petition is granted, the
	11690	+	24 holding company shall be included in a unitary
	11691	+	25 business group only with persons apportioning their
	11692	+	26 business income under the selected subsection of
	11693	+
	11694	+
	11695	+
	11696	+
	11697	+
	11698	+	SB1963 Enrolled - 327 - LRB103 25648 HLH 51997 b
	11699	+
	11700	+
	11701	+	SB1963 Enrolled- 328 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 328 - LRB103 25648 HLH 51997 b
	11702	+	SB1963 Enrolled - 328 - LRB103 25648 HLH 51997 b
	11703	+	1 Section 304 until the Director grants a petition of
	11704	+	2 the holding company either to be included in more than
	11705	+	3 one unitary business group under subparagraph (C) or
	11706	+	4 to include its base income and factors only with
	11707	+	5 members of a unitary business group apportioning their
	11708	+	6 business income under a different subsection of
	11709	+	7 Section 304.
	11710	+	8 (E) If the unitary business group members'
	11711	+	9 accounting periods differ, the common parent's
	11712	+	10 accounting period or, if there is no common parent,
	11713	+	11 the accounting period of the member that is expected
	11714	+	12 to have, on a recurring basis, the greatest Illinois
	11715	+	13 income tax liability must be used to determine whether
	11716	+	14 to use the apportionment method provided in subsection
	11717	+	15 (a) or subsection (h) of Section 304. The prohibition
	11718	+	16 against membership in a unitary business group for
	11719	+	17 taxpayers ordinarily required to apportion income
	11720	+	18 under different subsections of Section 304 does not
	11721	+	19 apply to taxpayers required to apportion income under
	11722	+	20 subsection (a) and subsection (h) of Section 304. The
	11723	+	21 provisions of this amendatory Act of 1998 apply to tax
	11724	+	22 years ending on or after December 31, 1998.
	11725	+	23 (28) Subchapter S corporation. The term "Subchapter S
	11726	+	24 corporation" means a corporation for which there is in
	11727	+	25 effect an election under Section 1362 of the Internal
	11728	+	26 Revenue Code, or for which there is a federal election to
	11729	+
	11730	+
	11731	+
	11732	+
	11733	+
	11734	+	SB1963 Enrolled - 328 - LRB103 25648 HLH 51997 b
	11735	+
	11736	+
	11737	+	SB1963 Enrolled- 329 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 329 - LRB103 25648 HLH 51997 b
	11738	+	SB1963 Enrolled - 329 - LRB103 25648 HLH 51997 b
	11739	+	1 opt out of the provisions of the Subchapter S Revision Act
	11740	+	2 of 1982 and have applied instead the prior federal
	11741	+	3 Subchapter S rules as in effect on July 1, 1982.
	11742	+	4 (30) Foreign person. The term "foreign person" means
	11743	+	5 any person who is a nonresident individual who is a
	11744	+	6 national or citizen of a country other than the United
	11745	+	7 States and any nonindividual entity, regardless of where
	11746	+	8 created or organized, whose business activity outside the
	11747	+	9 United States is 80% or more of the entity's total
	11748	+	10 business activity.
	11749	+	11 (b) Other definitions.
	11750	+	12 (1) Words denoting number, gender, and so forth, when
	11751	+	13 used in this Act, where not otherwise distinctly expressed
	11752	+	14 or manifestly incompatible with the intent thereof:
	11753	+	15 (A) Words importing the singular include and apply
	11754	+	16 to several persons, parties or things;
	11755	+	17 (B) Words importing the plural include the
	11756	+	18 singular; and
	11757	+	19 (C) Words importing the masculine gender include
	11758	+	20 the feminine as well.
	11759	+	21 (2) "Company" or "association" as including successors
	11760	+	22 and assigns. The word "company" or "association", when
	11761	+	23 used in reference to a corporation, shall be deemed to
	11762	+	24 embrace the words "successors and assigns of such company
	11763	+	25 or association", and in like manner as if these last-named
	11764	+	26 words, or words of similar import, were expressed.
	11765	+
	11766	+
	11767	+
	11768	+
	11769	+
	11770	+	SB1963 Enrolled - 329 - LRB103 25648 HLH 51997 b
	11771	+
	11772	+
	11773	+	SB1963 Enrolled- 330 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 330 - LRB103 25648 HLH 51997 b
	11774	+	SB1963 Enrolled - 330 - LRB103 25648 HLH 51997 b
	11775	+	1 (3) Other terms. Any term used in any Section of this
	11776	+	2 Act with respect to the application of, or in connection
	11777	+	3 with, the provisions of any other Section of this Act
	11778	+	4 shall have the same meaning as in such other Section.
	11779	+	5 (Source: P.A. 102-1030, eff. 5-27-22.)
	11780	+	6 ARTICLE 55. ANGEL INVESTMENT CREDIT
	11781	+	7 Section 55-5. The Illinois Income Tax Act is amended by
	11782	+	8 changing Section 220 as follows:
	11783	+	9 (35 ILCS 5/220)
	11784	+	10 Sec. 220. Angel investment credit.
	11785	+	11 (a) As used in this Section:
	11786	+	12 "Applicant" means a corporation, partnership, limited
	11787	+	13 liability company, or a natural person that makes an
	11788	+	14 investment in a qualified new business venture. The term
	11789	+	15 "applicant" does not include (i) a corporation, partnership,
	11790	+	16 limited liability company, or a natural person who has a
	11791	+	17 direct or indirect ownership interest of at least 51% in the
	11792	+	18 profits, capital, or value of the qualified new business
	11793	+	19 venture receiving the investment or (ii) a related member.
	11794	+	20 "Claimant" means an applicant certified by the Department
	11795	+	21 who files a claim for a credit under this Section.
	11796	+	22 "Department" means the Department of Commerce and Economic
	11797	+	23 Opportunity.
	11798	+
	11799	+
	11800	+
	11801	+
	11802	+
	11803	+	SB1963 Enrolled - 330 - LRB103 25648 HLH 51997 b
	11804	+
	11805	+
	11806	+	SB1963 Enrolled- 331 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 331 - LRB103 25648 HLH 51997 b
	11807	+	SB1963 Enrolled - 331 - LRB103 25648 HLH 51997 b
	11808	+	1 "Investment" means money (or its equivalent) given to a
	11809	+	2 qualified new business venture, at a risk of loss, in
	11810	+	3 consideration for an equity interest of the qualified new
	11811	+	4 business venture. The Department may adopt rules to permit
	11812	+	5 certain forms of contingent equity investments to be
	11813	+	6 considered eligible for a tax credit under this Section.
	11814	+	7 "Qualified new business venture" means a business that is
	11815	+	8 registered with the Department under this Section.
	11816	+	9 "Related member" means a person that, with respect to the
	11817	+	10 applicant, is any one of the following:
	11818	+	11 (1) An individual, if the individual and the members
	11819	+	12 of the individual's family (as defined in Section 318 of
	11820	+	13 the Internal Revenue Code) own directly, indirectly,
	11821	+	14 beneficially, or constructively, in the aggregate, at
	11822	+	15 least 50% of the value of the outstanding profits,
	11823	+	16 capital, stock, or other ownership interest in the
	11824	+	17 qualified new business venture that is the recipient of
	11825	+	18 the applicant's investment.
	11826	+	19 (2) A partnership, estate, or trust and any partner or
	11827	+	20 beneficiary, if the partnership, estate, or trust and its
	11828	+	21 partners or beneficiaries own directly, indirectly,
	11829	+	22 beneficially, or constructively, in the aggregate, at
	11830	+	23 least 50% of the profits, capital, stock, or other
	11831	+	24 ownership interest in the qualified new business venture
	11832	+	25 that is the recipient of the applicant's investment.
	11833	+	26 (3) A corporation, and any party related to the
	11834	+
	11835	+
	11836	+
	11837	+
	11838	+
	11839	+	SB1963 Enrolled - 331 - LRB103 25648 HLH 51997 b
	11840	+
	11841	+
	11842	+	SB1963 Enrolled- 332 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 332 - LRB103 25648 HLH 51997 b
	11843	+	SB1963 Enrolled - 332 - LRB103 25648 HLH 51997 b
	11844	+	1 corporation in a manner that would require an attribution
	11845	+	2 of stock from the corporation under the attribution rules
	11846	+	3 of Section 318 of the Internal Revenue Code, if the
	11847	+	4 applicant and any other related member own, in the
	11848	+	5 aggregate, directly, indirectly, beneficially, or
	11849	+	6 constructively, at least 50% of the value of the
	11850	+	7 outstanding stock of the qualified new business venture
	11851	+	8 that is the recipient of the applicant's investment.
	11852	+	9 (4) A corporation and any party related to that
	11853	+	10 corporation in a manner that would require an attribution
	11854	+	11 of stock from the corporation to the party or from the
	11855	+	12 party to the corporation under the attribution rules of
	11856	+	13 Section 318 of the Internal Revenue Code, if the
	11857	+	14 corporation and all such related parties own, in the
	11858	+	15 aggregate, at least 50% of the profits, capital, stock, or
	11859	+	16 other ownership interest in the qualified new business
	11860	+	17 venture that is the recipient of the applicant's
	11861	+	18 investment.
	11862	+	19 (5) A person to or from whom there is attribution of
	11863	+	20 ownership of stock in the qualified new business venture
	11864	+	21 that is the recipient of the applicant's investment in
	11865	+	22 accordance with Section 1563(e) of the Internal Revenue
	11866	+	23 Code, except that for purposes of determining whether a
	11867	+	24 person is a related member under this paragraph, "20%"
	11868	+	25 shall be substituted for "5%" whenever "5%" appears in
	11869	+	26 Section 1563(e) of the Internal Revenue Code.
	11870	+
	11871	+
	11872	+
	11873	+
	11874	+
	11875	+	SB1963 Enrolled - 332 - LRB103 25648 HLH 51997 b
	11876	+
	11877	+
	11878	+	SB1963 Enrolled- 333 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 333 - LRB103 25648 HLH 51997 b
	11879	+	SB1963 Enrolled - 333 - LRB103 25648 HLH 51997 b
	11880	+	1 (b) For taxable years beginning after December 31, 2010,
	11881	+	2 and ending on or before December 31, 2026, subject to the
	11882	+	3 limitations provided in this Section, a claimant may claim, as
	11883	+	4 a credit against the tax imposed under subsections (a) and (b)
	11884	+	5 of Section 201 of this Act, an amount equal to 25% of the
	11885	+	6 claimant's investment made directly in a qualified new
	11886	+	7 business venture. However, the amount of the credit is 35% of
	11887	+	8 the claimant's investment made directly in the qualified new
	11888	+	9 business venture if the investment is made in: (1) a qualified
	11889	+	10 new business venture that is a minority-owned business, a
	11890	+	11 women-owned business, or a business owned a person with a
	11891	+	12 disability (as those terms are used and defined in the
	11892	+	13 Business Enterprise for Minorities, Women, and Persons with
	11893	+	14 Disabilities Act); or (2) a qualified new business venture in
	11894	+	15 which the principal place of business is located in a county
	11895	+	16 with a population of not more than 250,000. In order for an
	11896	+	17 investment in a qualified new business venture to be eligible
	11897	+	18 for tax credits, the business must have applied for and
	11898	+	19 received certification under subsection (e) for the taxable
	11899	+	20 year in which the investment was made prior to the date on
	11900	+	21 which the investment was made. The credit under this Section
	11901	+	22 may not exceed the taxpayer's Illinois income tax liability
	11902	+	23 for the taxable year. If the amount of the credit exceeds the
	11903	+	24 tax liability for the year, the excess may be carried forward
	11904	+	25 and applied to the tax liability of the 5 taxable years
	11905	+	26 following the excess credit year. The credit shall be applied
	11906	+
	11907	+
	11908	+
	11909	+
	11910	+
	11911	+	SB1963 Enrolled - 333 - LRB103 25648 HLH 51997 b
	11912	+
	11913	+
	11914	+	SB1963 Enrolled- 334 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 334 - LRB103 25648 HLH 51997 b
	11915	+	SB1963 Enrolled - 334 - LRB103 25648 HLH 51997 b
	11916	+	1 to the earliest year for which there is a tax liability. If
	11917	+	2 there are credits from more than one tax year that are
	11918	+	3 available to offset a liability, the earlier credit shall be
	11919	+	4 applied first. In the case of a partnership or Subchapter S
	11920	+	5 Corporation, the credit is allowed to the partners or
	11921	+	6 shareholders in accordance with the determination of income
	11922	+	7 and distributive share of income under Sections 702 and 704
	11923	+	8 and Subchapter S of the Internal Revenue Code.
	11924	+	9 (c) The minimum amount an applicant must invest in any
	11925	+	10 single qualified new business venture in order to be eligible
	11926	+	11 for a credit under this Section is $10,000. The maximum amount
	11927	+	12 of an applicant's total investment made in any single
	11928	+	13 qualified new business venture that may be used as the basis
	11929	+	14 for a credit under this Section is $2,000,000.
	11930	+	15 (d) The Department shall implement a program to certify an
	11931	+	16 applicant for an angel investment credit. Upon satisfactory
	11932	+	17 review, the Department shall issue a tax credit certificate
	11933	+	18 stating the amount of the tax credit to which the applicant is
	11934	+	19 entitled. The Department shall annually certify that: (i) each
	11935	+	20 qualified new business venture that receives an angel
	11936	+	21 investment under this Section has maintained a minimum
	11937	+	22 employment threshold, as defined by rule, in the State (and
	11938	+	23 continues to maintain a minimum employment threshold in the
	11939	+	24 State for a period of no less than 3 years from the issue date
	11940	+	25 of the last tax credit certificate issued by the Department
	11941	+	26 with respect to such business pursuant to this Section); and
	11942	+
	11943	+
	11944	+
	11945	+
	11946	+
	11947	+	SB1963 Enrolled - 334 - LRB103 25648 HLH 51997 b
	11948	+
	11949	+
	11950	+	SB1963 Enrolled- 335 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 335 - LRB103 25648 HLH 51997 b
	11951	+	SB1963 Enrolled - 335 - LRB103 25648 HLH 51997 b
	11952	+	1 (ii) the claimant's investment has been made and remains,
	11953	+	2 except in the event of a qualifying liquidity event, in the
	11954	+	3 qualified new business venture for no less than 3 years.
	11955	+	4 If an investment for which a claimant is allowed a credit
	11956	+	5 under subsection (b) is held by the claimant for less than 3
	11957	+	6 years, other than as a result of a permitted sale of the
	11958	+	7 investment to person who is not a related member, the claimant
	11959	+	8 shall pay to the Department of Revenue, in the manner
	11960	+	9 prescribed by the Department of Revenue, the aggregate amount
	11961	+	10 of the disqualified credits that the claimant received related
	11962	+	11 to the subject investment.
	11963	+	12 If the Department determines that a qualified new business
	11964	+	13 venture failed to maintain a minimum employment threshold in
	11965	+	14 the State through the date which is 3 years from the issue date
	11966	+	15 of the last tax credit certificate issued by the Department
	11967	+	16 with respect to the subject business pursuant to this Section,
	11968	+	17 the claimant or claimants shall pay to the Department of
	11969	+	18 Revenue, in the manner prescribed by the Department of
	11970	+	19 Revenue, the aggregate amount of the disqualified credits that
	11971	+	20 claimant or claimants received related to investments in that
	11972	+	21 business.
	11973	+	22 (e) The Department shall implement a program to register
	11974	+	23 qualified new business ventures for purposes of this Section.
	11975	+	24 A business desiring registration under this Section shall be
	11976	+	25 required to submit a full and complete application to the
	11977	+	26 Department. A submitted application shall be effective only
	11978	+
	11979	+
	11980	+
	11981	+
	11982	+
	11983	+	SB1963 Enrolled - 335 - LRB103 25648 HLH 51997 b
	11984	+
	11985	+
	11986	+	SB1963 Enrolled- 336 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 336 - LRB103 25648 HLH 51997 b
	11987	+	SB1963 Enrolled - 336 - LRB103 25648 HLH 51997 b
	11988	+	1 for the taxable year in which it is submitted, and a business
	11989	+	2 desiring registration under this Section shall be required to
	11990	+	3 submit a separate application in and for each taxable year for
	11991	+	4 which the business desires registration. Further, if at any
	11992	+	5 time prior to the acceptance of an application for
	11993	+	6 registration under this Section by the Department one or more
	11994	+	7 events occurs which makes the information provided in that
	11995	+	8 application materially false or incomplete (in whole or in
	11996	+	9 part), the business shall promptly notify the Department of
	11997	+	10 the same. Any failure of a business to promptly provide the
	11998	+	11 foregoing information to the Department may, at the discretion
	11999	+	12 of the Department, result in a revocation of a previously
	12000	+	13 approved application for that business, or disqualification of
	12001	+	14 the business from future registration under this Section, or
	12002	+	15 both. The Department may register the business only if all of
	12003	+	16 the following conditions are satisfied:
	12004	+	17 (1) it has its principal place of business in this
	12005	+	18 State;
	12006	+	19 (2) at least 51% of the employees employed by the
	12007	+	20 business are employed in this State;
	12008	+	21 (3) the business has the potential for increasing jobs
	12009	+	22 in this State, increasing capital investment in this
	12010	+	23 State, or both, as determined by the Department, and
	12011	+	24 either of the following apply:
	12012	+	25 (A) it is principally engaged in innovation in any
	12013	+	26 of the following: manufacturing; biotechnology;
	12014	+
	12015	+
	12016	+
	12017	+
	12018	+
	12019	+	SB1963 Enrolled - 336 - LRB103 25648 HLH 51997 b
	12020	+
	12021	+
	12022	+	SB1963 Enrolled- 337 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 337 - LRB103 25648 HLH 51997 b
	12023	+	SB1963 Enrolled - 337 - LRB103 25648 HLH 51997 b
	12024	+	1 nanotechnology; communications; agricultural
	12025	+	2 sciences; clean energy creation or storage technology;
	12026	+	3 processing or assembling products, including medical
	12027	+	4 devices, pharmaceuticals, computer software, computer
	12028	+	5 hardware, semiconductors, other innovative technology
	12029	+	6 products, or other products that are produced using
	12030	+	7 manufacturing methods that are enabled by applying
	12031	+	8 proprietary technology; or providing services that are
	12032	+	9 enabled by applying proprietary technology; or
	12033	+	10 (B) it is undertaking pre-commercialization
	12034	+	11 activity related to proprietary technology that
	12035	+	12 includes conducting research, developing a new product
	12036	+	13 or business process, or developing a service that is
	12037	+	14 principally reliant on applying proprietary
	12038	+	15 technology;
	12039	+	16 (4) it is not principally engaged in real estate
	12040	+	17 development, insurance, banking, lending, lobbying,
	12041	+	18 political consulting, professional services provided by
	12042	+	19 attorneys, accountants, business consultants, physicians,
	12043	+	20 or health care consultants, wholesale or retail trade,
	12044	+	21 leisure, hospitality, transportation, or construction,
	12045	+	22 except construction of power production plants that derive
	12046	+	23 energy from a renewable energy resource, as defined in
	12047	+	24 Section 1 of the Illinois Power Agency Act;
	12048	+	25 (5) at the time it is first certified:
	12049	+	26 (A) it has fewer than 100 employees;
	12050	+
	12051	+
	12052	+
	12053	+
	12054	+
	12055	+	SB1963 Enrolled - 337 - LRB103 25648 HLH 51997 b
	12056	+
	12057	+
	12058	+	SB1963 Enrolled- 338 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 338 - LRB103 25648 HLH 51997 b
	12059	+	SB1963 Enrolled - 338 - LRB103 25648 HLH 51997 b
	12060	+	1 (B) it has been in operation in Illinois for not
	12061	+	2 more than 10 consecutive years prior to the year of
	12062	+	3 certification; and
	12063	+	4 (C) it has received not more than $10,000,000 in
	12064	+	5 aggregate investments;
	12065	+	6 (5.1) it agrees to maintain a minimum employment
	12066	+	7 threshold in the State of Illinois prior to the date which
	12067	+	8 is 3 years from the issue date of the last tax credit
	12068	+	9 certificate issued by the Department with respect to that
	12069	+	10 business pursuant to this Section;
	12070	+	11 (6) (blank); and
	12071	+	12 (7) it has received not more than $4,000,000 in
	12072	+	13 investments that qualified for tax credits under this
	12073	+	14 Section.
	12074	+	15 (f) The Department, in consultation with the Department of
	12075	+	16 Revenue, shall adopt rules to administer this Section. For
	12076	+	17 taxable years beginning before January 1, 2024, the The
	12077	+	18 aggregate amount of the tax credits that may be claimed under
	12078	+	19 this Section for investments made in qualified new business
	12079	+	20 ventures shall be limited to at $10,000,000 per calendar year,
	12080	+	21 of which $500,000 shall be reserved for investments made in
	12081	+	22 qualified new business ventures which are minority-owned
	12082	+	23 businesses, women-owned businesses, or businesses owned by a
	12083	+	24 person with a disability (as those terms are used and defined
	12084	+	25 in the Business Enterprise for Minorities, Women, and Persons
	12085	+	26 with Disabilities Act), and an additional $500,000 shall be
	12086	+
	12087	+
	12088	+
	12089	+
	12090	+
	12091	+	SB1963 Enrolled - 338 - LRB103 25648 HLH 51997 b
	12092	+
	12093	+
	12094	+	SB1963 Enrolled- 339 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 339 - LRB103 25648 HLH 51997 b
	12095	+	SB1963 Enrolled - 339 - LRB103 25648 HLH 51997 b
	12096	+	1 reserved for investments made in qualified new business
	12097	+	2 ventures with their principal place of business in counties
	12098	+	3 with a population of not more than 250,000. For taxable years
	12099	+	4 beginning on or after January 1, 2024, the aggregate amount of
	12100	+	5 the tax credits that may be claimed under this Section for
	12101	+	6 investments made in qualified new business ventures shall be
	12102	+	7 limited to $15,000,000 per calendar year, of which $2,500,000
	12103	+	8 shall be reserved for investments made in qualified new
	12104	+	9 business ventures that are minority-owned businesses (as the
	12105	+	10 term is defined in the Business Enterprise for Minorities,
	12106	+	11 Women, and Persons with Disabilities Act), $1,250,000 shall be
	12107	+	12 reserved for investments made in qualified new business
	12108	+	13 ventures that are women-owned businesses or businesses owned
	12109	+	14 by a person with a disability (as those terms are defined in
	12110	+	15 the Business Enterprise for Minorities, Women, and Persons
	12111	+	16 with Disabilities Act), and $1,250,000 shall be reserved for
	12112	+	17 investments made in qualified new business ventures with their
	12113	+	18 principal place of business in a county with a population of
	12114	+	19 not more than 250,000. The foregoing annual allowable amounts
	12115	+	20 set forth in this Section shall be allocated by the
	12116	+	21 Department, on a per calendar quarter basis and prior to the
	12117	+	22 commencement of each calendar year, in such proportion as
	12118	+	23 determined by the Department, provided that: (i) the amount
	12119	+	24 initially allocated by the Department for any one calendar
	12120	+	25 quarter shall not exceed 35% of the total allowable amount;
	12121	+	26 (ii) any portion of the allocated allowable amount remaining
	12122	+
	12123	+
	12124	+
	12125	+
	12126	+
	12127	+	SB1963 Enrolled - 339 - LRB103 25648 HLH 51997 b
	12128	+
	12129	+
	12130	+	SB1963 Enrolled- 340 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 340 - LRB103 25648 HLH 51997 b
	12131	+	SB1963 Enrolled - 340 - LRB103 25648 HLH 51997 b
	12132	+	1 unused as of the end of any of the first 3 calendar quarters of
	12133	+	2 a given calendar year shall be rolled into, and added to, the
	12134	+	3 total allocated amount for the next available calendar
	12135	+	4 quarter; and (iii) the reservation of tax credits for
	12136	+	5 investments in minority-owned businesses, women-owned
	12137	+	6 businesses, businesses owned by a person with a disability,
	12138	+	7 and in businesses in counties with a population of not more
	12139	+	8 than 250,000 is limited to the first 3 calendar quarters of a
	12140	+	9 given calendar year, after which they may be claimed by
	12141	+	10 investors in any qualified new business venture.
	12142	+	11 (g) A claimant may not sell or otherwise transfer a credit
	12143	+	12 awarded under this Section to another person.
	12144	+	13 (h) On or before March 1 of each year, the Department shall
	12145	+	14 report to the Governor and to the General Assembly on the tax
	12146	+	15 credit certificates awarded under this Section for the prior
	12147	+	16 calendar year.
	12148	+	17 (1) This report must include, for each tax credit
	12149	+	18 certificate awarded:
	12150	+	19 (A) the name of the claimant and the amount of
	12151	+	20 credit awarded or allocated to that claimant;
	12152	+	21 (B) the name and address (including the county) of
	12153	+	22 the qualified new business venture that received the
	12154	+	23 investment giving rise to the credit, the North
	12155	+	24 American Industry Classification System (NAICS) code
	12156	+	25 applicable to that qualified new business venture, and
	12157	+	26 the number of employees of the qualified new business
	12158	+
	12159	+
	12160	+
	12161	+
	12162	+
	12163	+	SB1963 Enrolled - 340 - LRB103 25648 HLH 51997 b
	12164	+
	12165	+
	12166	+	SB1963 Enrolled- 341 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 341 - LRB103 25648 HLH 51997 b
	12167	+	SB1963 Enrolled - 341 - LRB103 25648 HLH 51997 b
	12168	+	1 venture; and
	12169	+	2 (C) the date of approval by the Department of each
	12170	+	3 claimant's tax credit certificate.
	12171	+	4 (2) The report must also include:
	12172	+	5 (A) the total number of applicants and the total
	12173	+	6 number of claimants, including the amount of each tax
	12174	+	7 credit certificate awarded to a claimant under this
	12175	+	8 Section in the prior calendar year;
	12176	+	9 (B) the total number of applications from
	12177	+	10 businesses seeking registration under this Section,
	12178	+	11 the total number of new qualified business ventures
	12179	+	12 registered by the Department, and the aggregate amount
	12180	+	13 of investment upon which tax credit certificates were
	12181	+	14 issued in the prior calendar year; and
	12182	+	15 (C) the total amount of tax credit certificates
	12183	+	16 sought by applicants, the amount of each tax credit
	12184	+	17 certificate issued to a claimant, the aggregate amount
	12185	+	18 of all tax credit certificates issued in the prior
	12186	+	19 calendar year and the aggregate amount of tax credit
	12187	+	20 certificates issued as authorized under this Section
	12188	+	21 for all calendar years.
	12189	+	22 (i) For each business seeking registration under this
	12190	+	23 Section after December 31, 2016, the Department shall require
	12191	+	24 the business to include in its application the North American
	12192	+	25 Industry Classification System (NAICS) code applicable to the
	12193	+	26 business and the number of employees of the business at the
	12194	+
	12195	+
	12196	+
	12197	+
	12198	+
	12199	+	SB1963 Enrolled - 341 - LRB103 25648 HLH 51997 b
	12200	+
	12201	+
	12202	+	SB1963 Enrolled- 342 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 342 - LRB103 25648 HLH 51997 b
	12203	+	SB1963 Enrolled - 342 - LRB103 25648 HLH 51997 b
	12204	+	1 time of application. Each business registered by the
	12205	+	2 Department as a qualified new business venture that receives
	12206	+	3 an investment giving rise to the issuance of a tax credit
	12207	+	4 certificate pursuant to this Section shall, for each of the 3
	12208	+	5 years following the issue date of the last tax credit
	12209	+	6 certificate issued by the Department with respect to such
	12210	+	7 business pursuant to this Section, report to the Department
	12211	+	8 the following:
	12212	+	9 (1) the number of employees and the location at which
	12213	+	10 those employees are employed, both as of the end of each
	12214	+	11 year;
	12215	+	12 (2) the amount of additional new capital investment
	12216	+	13 raised as of the end of each year, if any; and
	12217	+	14 (3) the terms of any liquidity event occurring during
	12218	+	15 such year; for the purposes of this Section, a "liquidity
	12219	+	16 event" means any event that would be considered an exit
	12220	+	17 for an illiquid investment, including any event that
	12221	+	18 allows the equity holders of the business (or any material
	12222	+	19 portion thereof) to cash out some or all of their
	12223	+	20 respective equity interests.
	12224	+	21 (Source: P.A. 101-81, eff. 7-12-19; 102-16, eff. 6-17-21.)
	12225	+	22 ARTICLE 60. NEW MARKETS DEVELOPMENT PROGRAM
	12226	+	23 Section 60-5. The New Markets Development Program Act is
	12227	+	24 amended by changing Sections 5, 20, 25, 45, and 50 as follows:
	12228	+
	12229	+
	12230	+
	12231	+
	12232	+
	12233	+	SB1963 Enrolled - 342 - LRB103 25648 HLH 51997 b
	12234	+
	12235	+
	12236	+	SB1963 Enrolled- 343 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 343 - LRB103 25648 HLH 51997 b
	12237	+	SB1963 Enrolled - 343 - LRB103 25648 HLH 51997 b
	12238	+	1 (20 ILCS 663/5)
	12239	+	2 Sec. 5. Definitions. As used in this Act:
	12240	+	3 "Applicable percentage" means 0% for each of the first 2
	12241	+	4 credit allowance dates, 7% for the third credit allowance
	12242	+	5 date, and 8% for the next 4 credit allowance dates.
	12243	+	6 "Credit allowance date" means with respect to any
	12244	+	7 qualified equity investment:
	12245	+	8 (1) the date on which the investment is initially
	12246	+	9 made; and
	12247	+	10 (2) each of the 6 anniversary dates of that date
	12248	+	11 thereafter.
	12249	+	12 "Department" means the Department of Commerce and Economic
	12250	+	13 Opportunity.
	12251	+	14 "Long-term debt security" means any debt instrument issued
	12252	+	15 by a qualified community development entity, at par value or a
	12253	+	16 premium, with an original maturity date of at least 7 years
	12254	+	17 from the date of its issuance, with no acceleration of
	12255	+	18 repayment, amortization, or prepayment features prior to its
	12256	+	19 original maturity date. Cumulative cash payments of interest
	12257	+	20 on the qualified debt instrument during the period commencing
	12258	+	21 with the issuance of the qualified debt instrument and ending
	12259	+	22 with the seventh anniversary of its issuance shall not exceed
	12260	+	23 the sum of such cash interest payments and the cumulative net
	12261	+	24 income of the issuing community development entity for the
	12262	+	25 same period. This definition in no way limits the holder's
	12263	+
	12264	+
	12265	+
	12266	+
	12267	+
	12268	+	SB1963 Enrolled - 343 - LRB103 25648 HLH 51997 b
	12269	+
	12270	+
	12271	+	SB1963 Enrolled- 344 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 344 - LRB103 25648 HLH 51997 b
	12272	+	SB1963 Enrolled - 344 - LRB103 25648 HLH 51997 b
	12273	+	1 ability to accelerate payments on the debt instrument in
	12274	+	2 situations where the issuer has defaulted on covenants
	12275	+	3 designed to ensure compliance with this Act or Section 45D of
	12276	+	4 the Internal Revenue Code of 1986, as amended.
	12277	+	5 "Purchase price" means the amount paid to the issuer of a
	12278	+	6 qualified equity investment for that qualified equity
	12279	+	7 investment.
	12280	+	8 "Qualified active low-income community business" has the
	12281	+	9 meaning given to that term in Section 45D of the Internal
	12282	+	10 Revenue Code of 1986, as amended; except that any business
	12283	+	11 that derives or projects to derive 15% or more of its annual
	12284	+	12 revenue from the rental or sale of real estate is not
	12285	+	13 considered to be a qualified active low-income community
	12286	+	14 business. This exception does not apply to a business that is
	12287	+	15 controlled by or under common control with another business if
	12288	+	16 the second business (i) does not derive or project to derive
	12289	+	17 15% or more of its annual revenue from the rental or sale of
	12290	+	18 real estate and (ii) is the primary tenant of the real estate
	12291	+	19 leased from the initial business. A business shall be
	12292	+	20 considered a qualified active low-income community business
	12293	+	21 for the duration of the qualified community development
	12294	+	22 entity's investment in or loan to the business if the entity
	12295	+	23 reasonably expects, at the time it makes the investment or
	12296	+	24 loan, that the business will continue to satisfy the
	12297	+	25 requirements for being a qualified active low-income community
	12298	+	26 business throughout the entire period of the investment or
	12299	+
	12300	+
	12301	+
	12302	+
	12303	+
	12304	+	SB1963 Enrolled - 344 - LRB103 25648 HLH 51997 b
	12305	+
	12306	+
	12307	+	SB1963 Enrolled- 345 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 345 - LRB103 25648 HLH 51997 b
	12308	+	SB1963 Enrolled - 345 - LRB103 25648 HLH 51997 b
	12309	+	1 loan.
	12310	+	2 "Qualified community development entity" has the meaning
	12311	+	3 given to that term in Section 45D of the Internal Revenue Code
	12312	+	4 of 1986, as amended; provided that such entity has entered
	12313	+	5 into, or is controlled by an entity that has entered into, an
	12314	+	6 allocation agreement with the Community Development Financial
	12315	+	7 Institutions Fund of the U.S. Treasury Department with respect
	12316	+	8 to credits authorized by Section 45D of the Internal Revenue
	12317	+	9 Code of 1986, as amended, that includes the State of Illinois
	12318	+	10 within the service area set forth in that allocation
	12319	+	11 agreement.
	12320	+	12 "Qualified equity investment" means any equity investment
	12321	+	13 in, or long-term debt security issued by, a qualified
	12322	+	14 community development entity that:
	12323	+	15 (1) is acquired after the effective date of this Act
	12324	+	16 at its original issuance solely in exchange for cash;
	12325	+	17 (2) with respect to qualified equity investments made
	12326	+	18 before January 1, 2024 2017, has at least 85% of its cash
	12327	+	19 purchase price used by the issuer to make qualified
	12328	+	20 low-income community investments in the State of Illinois,
	12329	+	21 and, with respect to qualified equity investments made on
	12330	+	22 or after January 1, 2024 2017, has 100% of the cash
	12331	+	23 purchase price used by the issuer to make qualified
	12332	+	24 low-income community investments in the State of Illinois;
	12333	+	25 and
	12334	+	26 (3) is designated by the issuer as a qualified equity
	12335	+
	12336	+
	12337	+
	12338	+
	12339	+
	12340	+	SB1963 Enrolled - 345 - LRB103 25648 HLH 51997 b
	12341	+
	12342	+
	12343	+	SB1963 Enrolled- 346 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 346 - LRB103 25648 HLH 51997 b
	12344	+	SB1963 Enrolled - 346 - LRB103 25648 HLH 51997 b
	12345	+	1 investment under this Act; with respect to qualified
	12346	+	2 equity investments made on or after January 1, 2024 2017,
	12347	+	3 is designated by the issuer as a qualified equity
	12348	+	4 investment under Section 45D of the Internal Revenue Code
	12349	+	5 of 1986, as amended; and is certified by the Department as
	12350	+	6 not exceeding the limitation contained in Section 20.
	12351	+	7 This term includes any qualified equity investment that
	12352	+	8 does not meet the provisions of item (1) of this definition if
	12353	+	9 the investment was a qualified equity investment in the hands
	12354	+	10 of a prior holder.
	12355	+	11 "Qualified low-income community investment" means any
	12356	+	12 capital or equity investment in, or loan to, any qualified
	12357	+	13 active low-income community business. With respect to any one
	12358	+	14 qualified active low-income community business, the maximum
	12359	+	15 amount of qualified low-income community investments made in
	12360	+	16 that business, on a collective basis with all of its
	12361	+	17 affiliates that may be counted towards the satisfaction of
	12362	+	18 paragraph (2) of the definition of qualified equity
	12363	+	19 investment, shall be $10,000,000 whether issued to one or
	12364	+	20 several qualified community development entities.
	12365	+	21 "Tax credit" means a credit against any income, franchise,
	12366	+	22 or insurance premium taxes, including insurance retaliatory
	12367	+	23 taxes, otherwise due under Illinois law.
	12368	+	24 "Taxpayer" means any individual or entity subject to any
	12369	+	25 income, franchise, or insurance premium tax under Illinois
	12370	+	26 law.
	12371	+
	12372	+
	12373	+
	12374	+
	12375	+
	12376	+	SB1963 Enrolled - 346 - LRB103 25648 HLH 51997 b
	12377	+
	12378	+
	12379	+	SB1963 Enrolled- 347 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 347 - LRB103 25648 HLH 51997 b
	12380	+	SB1963 Enrolled - 347 - LRB103 25648 HLH 51997 b
	12381	+	1 (Source: P.A. 100-408, eff. 8-25-17.)
	12382	+	2 (20 ILCS 663/20)
	12383	+	3 Sec. 20. Annual cap on credits. The Department shall limit
	12384	+	4 the monetary amount of qualified equity investments permitted
	12385	+	5 under this Act to a level necessary to limit tax credit use at
	12386	+	6 no more than (i) $20,000,000 in of tax credits for fiscal years
	12387	+	7 beginning before July 1, 2023 and (ii) $25,000,000 in tax
	12388	+	8 credits for fiscal years beginning on or after July 1, 2023 in
	12389	+	9 any fiscal year. This limitation on qualified equity
	12390	+	10 investments shall be based on the anticipated use of credits
	12391	+	11 without regard to the potential for taxpayers to carry forward
	12392	+	12 tax credits to later tax years.
	12393	+	13 (Source: P.A. 100-408, eff. 8-25-17.)
	12394	+	14 (20 ILCS 663/25)
	12395	+	15 Sec. 25. Certification of qualified equity investments.
	12396	+	16 (a) A qualified community development entity that seeks to
	12397	+	17 have an equity investment or long-term debt security
	12398	+	18 designated as a qualified equity investment and eligible for
	12399	+	19 tax credits under this Section shall apply to the Department.
	12400	+	20 The qualified community development entity must submit an
	12401	+	21 application on a form that the Department provides that
	12402	+	22 includes:
	12403	+	23 (1) The name, address, tax identification number of
	12404	+	24 the entity, and evidence of the entity's certification as
	12405	+
	12406	+
	12407	+
	12408	+
	12409	+
	12410	+	SB1963 Enrolled - 347 - LRB103 25648 HLH 51997 b
	12411	+
	12412	+
	12413	+	SB1963 Enrolled- 348 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 348 - LRB103 25648 HLH 51997 b
	12414	+	SB1963 Enrolled - 348 - LRB103 25648 HLH 51997 b
	12415	+	1 a qualified community development entity.
	12416	+	2 (2) A copy of the allocation agreement executed by the
	12417	+	3 entity, or its controlling entity, and the Community
	12418	+	4 Development Financial Institutions Fund.
	12419	+	5 (3) A certificate executed by an executive officer of
	12420	+	6 the entity attesting that the allocation agreement remains
	12421	+	7 in effect and has not been revoked or cancelled by the
	12422	+	8 Community Development Financial Institutions Fund.
	12423	+	9 (4) A description of the proposed amount, structure,
	12424	+	10 and purchaser of the equity investment or long-term debt
	12425	+	11 security.
	12426	+	12 (5) The name and tax identification number of any
	12427	+	13 taxpayer eligible to utilize tax credits earned as a
	12428	+	14 result of the issuance of the qualified equity investment.
	12429	+	15 (6) Information regarding the proposed use of proceeds
	12430	+	16 from the issuance of the qualified equity investment.
	12431	+	17 (7) A nonrefundable application fee of $5,000. This
	12432	+	18 fee shall be paid to the Department and shall be required
	12433	+	19 of each application submitted.
	12434	+	20 (8) With respect to qualified equity investments made
	12435	+	21 on or after January 1, 2017, the amount of qualified
	12436	+	22 equity investment authority the applicant agrees to
	12437	+	23 designate as a federal qualified equity investment under
	12438	+	24 Section 45D of the Internal Revenue Code, including a copy
	12439	+	25 of the screen shot from the Community Development
	12440	+	26 Financial Institutions Fund's Allocation Tracking System
	12441	+
	12442	+
	12443	+
	12444	+
	12445	+
	12446	+	SB1963 Enrolled - 348 - LRB103 25648 HLH 51997 b
	12447	+
	12448	+
	12449	+	SB1963 Enrolled- 349 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 349 - LRB103 25648 HLH 51997 b
	12450	+	SB1963 Enrolled - 349 - LRB103 25648 HLH 51997 b
	12451	+	1 of the applicant's remaining federal qualified equity
	12452	+	2 investment authority.
	12453	+	3 (b) Within 30 days after receipt of a completed
	12454	+	4 application containing the information necessary for the
	12455	+	5 Department to certify a potential qualified equity investment,
	12456	+	6 including the payment of the application fee, the Department
	12457	+	7 shall grant or deny the application in full or in part. If the
	12458	+	8 Department denies any part of the application, it shall inform
	12459	+	9 the qualified community development entity of the grounds for
	12460	+	10 the denial. If the qualified community development entity
	12461	+	11 provides any additional information required by the Department
	12462	+	12 or otherwise completes its application within 15 days of the
	12463	+	13 notice of denial, the application shall be considered
	12464	+	14 completed as of the original date of submission. If the
	12465	+	15 qualified community development entity fails to provide the
	12466	+	16 information or complete its application within the 15-day
	12467	+	17 period, the application remains denied and must be resubmitted
	12468	+	18 in full with a new submission date.
	12469	+	19 (c) If the application is deemed complete, the Department
	12470	+	20 shall certify the proposed equity investment or long-term debt
	12471	+	21 security as a qualified equity investment that is eligible for
	12472	+	22 tax credits under this Section, subject to the limitations
	12473	+	23 contained in Section 20. The Department shall provide written
	12474	+	24 notice of the certification to the qualified community
	12475	+	25 development entity. The notice shall include the names of
	12476	+	26 those taxpayers who are eligible to utilize the credits and
	12477	+
	12478	+
	12479	+
	12480	+
	12481	+
	12482	+	SB1963 Enrolled - 349 - LRB103 25648 HLH 51997 b
	12483	+
	12484	+
	12485	+	SB1963 Enrolled- 350 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 350 - LRB103 25648 HLH 51997 b
	12486	+	SB1963 Enrolled - 350 - LRB103 25648 HLH 51997 b
	12487	+	1 their respective credit amounts. If the names of the taxpayers
	12488	+	2 who are eligible to utilize the credits change due to a
	12489	+	3 transfer of a qualified equity investment or a change in an
	12490	+	4 allocation pursuant to Section 15, the qualified community
	12491	+	5 development entity shall notify the Department of such change.
	12492	+	6 (d) With respect to applications received before January
	12493	+	7 1, 2017, the Department shall certify qualified equity
	12494	+	8 investments in the order applications are received by the
	12495	+	9 Department. Applications received on the same day shall be
	12496	+	10 deemed to have been received simultaneously. For applications
	12497	+	11 received on the same day and deemed complete, the Department
	12498	+	12 shall certify, consistent with remaining tax credit capacity,
	12499	+	13 qualified equity investments in proportionate percentages
	12500	+	14 based upon the ratio of the amount of qualified equity
	12501	+	15 investment requested in an application to the total amount of
	12502	+	16 qualified equity investments requested in all applications
	12503	+	17 received on the same day.
	12504	+	18 (d-5) With respect to applications received on or after
	12505	+	19 January 1, 2017, the Department shall certify applications by
	12506	+	20 applicants that agree to designate qualified equity
	12507	+	21 investments as federal qualified equity investments in
	12508	+	22 accordance with item (8) of subsection (a) of this Section in
	12509	+	23 proportionate percentages based upon the ratio of the amount
	12510	+	24 of qualified equity investments requested in an application to
	12511	+	25 be designated as federal qualified equity investments to the
	12512	+	26 total amount of qualified equity investments to be designated
	12513	+
	12514	+
	12515	+
	12516	+
	12517	+
	12518	+	SB1963 Enrolled - 350 - LRB103 25648 HLH 51997 b
	12519	+
	12520	+
	12521	+	SB1963 Enrolled- 351 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 351 - LRB103 25648 HLH 51997 b
	12522	+	SB1963 Enrolled - 351 - LRB103 25648 HLH 51997 b
	12523	+	1 as federal qualified equity investments requested in all
	12524	+	2 applications received on the same day.
	12525	+	3 (d-10) With respect to applications received on or after
	12526	+	4 January 1, 2017, after complying with subsection (d-5), the
	12527	+	5 Department shall certify the qualified equity investments of
	12528	+	6 all other applicants, including the remaining qualified equity
	12529	+	7 investment authority requested by applicants not designated as
	12530	+	8 federal qualified equity investments in accordance with item
	12531	+	9 (8) of subsection (a) of this Section, in proportionate
	12532	+	10 percentages based upon the ratio of the amount of qualified
	12533	+	11 equity investments requested in the applications to the total
	12534	+	12 amount of qualified equity investments requested in all
	12535	+	13 applications received on the same day.
	12536	+	14 (e) Once the Department has certified qualified equity
	12537	+	15 investments that, on a cumulative basis, are eligible for
	12538	+	16 $20,000,000 in tax credits (for taxable years beginning before
	12539	+	17 July 1, 2023) or $25,000,000 in tax credits (for taxable years
	12540	+	18 beginning on or after July 1, 2023), the Department may not
	12541	+	19 certify any more qualified equity investments. If a pending
	12542	+	20 request cannot be fully certified, the Department shall
	12543	+	21 certify the portion that may be certified unless the qualified
	12544	+	22 community development entity elects to withdraw its request
	12545	+	23 rather than receive partial credit.
	12546	+	24 (f) Within 30 days after receiving notice of
	12547	+	25 certification, the qualified community development entity
	12548	+	26 shall (i) issue the qualified equity investment and receive
	12549	+
	12550	+
	12551	+
	12552	+
	12553	+
	12554	+	SB1963 Enrolled - 351 - LRB103 25648 HLH 51997 b
	12555	+
	12556	+
	12557	+	SB1963 Enrolled- 352 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 352 - LRB103 25648 HLH 51997 b
	12558	+	SB1963 Enrolled - 352 - LRB103 25648 HLH 51997 b
	12559	+	1 cash in the amount of the certified amount and (ii) with
	12560	+	2 respect to qualified equity investments made on or after
	12561	+	3 January 1, 2017, if applicable, designate the required amount
	12562	+	4 of qualified equity investment authority as a federal
	12563	+	5 qualified equity investment. The qualified community
	12564	+	6 development entity must provide the Department with evidence
	12565	+	7 of the receipt of the cash investment within 10 business days
	12566	+	8 after receipt and, with respect to qualified equity
	12567	+	9 investments made on or after January 1, 2017, if applicable,
	12568	+	10 provide evidence that the required amount of qualified equity
	12569	+	11 investment authority was designated as a federal qualified
	12570	+	12 equity investment. If the qualified community development
	12571	+	13 entity does not receive the cash investment and issue the
	12572	+	14 qualified equity investment within 30 days following receipt
	12573	+	15 of the certification notice, the certification shall lapse and
	12574	+	16 the entity may not issue the qualified equity investment
	12575	+	17 without reapplying to the Department for certification. A
	12576	+	18 certification that lapses reverts back to the Department and
	12577	+	19 may be reissued only in accordance with the application
	12578	+	20 process outline in this Section 25.
	12579	+	21 (g) Allocation rounds enabled by this Act shall be applied
	12580	+	22 for according to the following schedule:
	12581	+	23 (1) on January 2, 2019, $125,000,000 of qualified
	12582	+	24 equity investments; and
	12583	+	25 (2) not less than 45 days after but not more than 90
	12584	+	26 days after the Community Development Financial
	12585	+
	12586	+
	12587	+
	12588	+
	12589	+
	12590	+	SB1963 Enrolled - 352 - LRB103 25648 HLH 51997 b
	12591	+
	12592	+
	12593	+	SB1963 Enrolled- 353 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 353 - LRB103 25648 HLH 51997 b
	12594	+	SB1963 Enrolled - 353 - LRB103 25648 HLH 51997 b
	12595	+	1 Institutions Fund of the United States Department of the
	12596	+	2 Treasury announces allocation awards under a Notice of
	12597	+	3 Funding Availability that is published in the Federal
	12598	+	4 Register after September 6, 2019, $125,000,000 of
	12599	+	5 qualified equity investments; and .
	12600	+	6 (3) on or after January 1, 2024, but not more than 120
	12601	+	7 days after the Community Development Financial
	12602	+	8 Institutions Fund of the United States Department of the
	12603	+	9 Treasury announces allocation awards under a Notice of
	12604	+	10 Funding Availability that was published in the Federal
	12605	+	11 Register on November 22, 2022, $312,500,000 of qualified
	12606	+	12 equity investments.
	12607	+	13 (Source: P.A. 100-408, eff. 8-25-17; 101-604, eff. 12-13-19.)
	12608	+	14 (20 ILCS 663/45)
	12609	+	15 Sec. 45. Examination and Rulemaking.
	12610	+	16 (a) The Department may conduct examinations to verify that
	12611	+	17 the tax credits under this Act have been received and applied
	12612	+	18 according to the requirements of this Act and to verify that no
	12613	+	19 event has occurred that would result in a recapture of tax
	12614	+	20 credits under Section 40.
	12615	+	21 (b) Neither the Department nor the Department of Revenue
	12616	+	22 shall have the authority to promulgate rules under the Act,
	12617	+	23 but, with respect to qualified equity investments issued
	12618	+	24 before January 1, 2024, the Department and the Department of
	12619	+	25 Revenue shall have the authority to issue advisory letters to
	12620	+
	12621	+
	12622	+
	12623	+
	12624	+
	12625	+	SB1963 Enrolled - 353 - LRB103 25648 HLH 51997 b
	12626	+
	12627	+
	12628	+	SB1963 Enrolled- 354 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 354 - LRB103 25648 HLH 51997 b
	12629	+	SB1963 Enrolled - 354 - LRB103 25648 HLH 51997 b
	12630	+	1 individual qualified community development entities and their
	12631	+	2 investors that are limited to the specific facts outlined in
	12632	+	3 an advisory letter request from a qualified community
	12633	+	4 development entity. Such rulings cannot be relied upon by any
	12634	+	5 person or entity other than the qualified community
	12635	+	6 development entity that requested the letter and the taxpayers
	12636	+	7 that are entitled to any tax credits generated from
	12637	+	8 investments in such entity. For purposes of this subsection,
	12638	+	9 "rules" is given the meaning contained in Section 1-70 of the
	12639	+	10 Illinois Administrative Procedure Act.
	12640	+	11 (c) In rendering advisory letters and making other
	12641	+	12 determinations under this Act prior to January 1, 2024, to the
	12642	+	13 extent applicable, the Department and the Department of
	12643	+	14 Revenue shall look for guidance to Section 45D of the Internal
	12644	+	15 Revenue Code of 1986, as amended, and the rules and
	12645	+	16 regulations issued thereunder.
	12646	+	17 (d) It is the intent of the General Assembly that
	12647	+	18 qualified equity investment structures allowed pursuant to
	12648	+	19 advisory letters and other determinations by the Department
	12649	+	20 and the Department of Revenue prior to January 1, 2024 shall be
	12650	+	21 allowed and that qualified community development entities may
	12651	+	22 rely on the rules and regulations issued under Section 45D of
	12652	+	23 the Internal Revenue Code of 1986, as amended, where
	12653	+	24 applicable.
	12654	+	25 (Source: P.A. 95-1024, eff. 12-31-08.)
	12655	+
	12656	+
	12657	+
	12658	+
	12659	+
	12660	+	SB1963 Enrolled - 354 - LRB103 25648 HLH 51997 b
	12661	+
	12662	+
	12663	+	SB1963 Enrolled- 355 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 355 - LRB103 25648 HLH 51997 b
	12664	+	SB1963 Enrolled - 355 - LRB103 25648 HLH 51997 b
	12665	+	1 (20 ILCS 663/50)
	12666	+	2 Sec. 50. Sunset. For fiscal years following fiscal year
	12667	+	3 2031 2024, qualified equity investments shall not be made
	12668	+	4 under this Act unless reauthorization is made pursuant to this
	12669	+	5 Section. For all fiscal years following fiscal year 2031 2024,
	12670	+	6 unless the General Assembly adopts a joint resolution granting
	12671	+	7 authority to the Department to approve qualified equity
	12672	+	8 investments for the Illinois new markets development program
	12673	+	9 and clearly describing the amount of tax credits available for
	12674	+	10 the next fiscal year, or otherwise complies with the
	12675	+	11 provisions of this Section, no qualified equity investments
	12676	+	12 may be permitted to be made under this Act. The amount of
	12677	+	13 available tax credits contained in such a resolution shall not
	12678	+	14 exceed the limitation provided under Section 20. Nothing in
	12679	+	15 this Section precludes a taxpayer who makes a qualified equity
	12680	+	16 investment prior to the expiration of authority to make
	12681	+	17 qualified equity investments from claiming tax credits
	12682	+	18 relating to that qualified equity investment for each
	12683	+	19 applicable credit allowance date.
	12684	+	20 (Source: P.A. 102-16, eff. 6-17-21.)
	12685	+	21 ARTICLE 65. STANDARD EXEMPTION
	12686	+	22 Section 65-5. The Illinois Income Tax Act is amended by
	12687	+	23 changing Section 204 as follows:
	12688	+
	12689	+
	12690	+
	12691	+
	12692	+
	12693	+	SB1963 Enrolled - 355 - LRB103 25648 HLH 51997 b
	12694	+
	12695	+
	12696	+	SB1963 Enrolled- 356 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 356 - LRB103 25648 HLH 51997 b
	12697	+	SB1963 Enrolled - 356 - LRB103 25648 HLH 51997 b
	12698	+	1 (35 ILCS 5/204) (from Ch. 120, par. 2-204)
	12699	+	2 Sec. 204. Standard exemption.
	12700	+	3 (a) Allowance of exemption. In computing net income under
	12701	+	4 this Act, there shall be allowed as an exemption the sum of the
	12702	+	5 amounts determined under subsections (b), (c) and (d),
	12703	+	6 multiplied by a fraction the numerator of which is the amount
	12704	+	7 of the taxpayer's base income allocable to this State for the
	12705	+	8 taxable year and the denominator of which is the taxpayer's
	12706	+	9 total base income for the taxable year.
	12707	+	10 (b) Basic amount. For the purpose of subsection (a) of
	12708	+	11 this Section, except as provided by subsection (a) of Section
	12709	+	12 205 and in this subsection, each taxpayer shall be allowed a
	12710	+	13 basic amount of $1000, except that for corporations the basic
	12711	+	14 amount shall be zero for tax years ending on or after December
	12712	+	15 31, 2003, and for individuals the basic amount shall be:
	12713	+	16 (1) for taxable years ending on or after December 31,
	12714	+	17 1998 and prior to December 31, 1999, $1,300;
	12715	+	18 (2) for taxable years ending on or after December 31,
	12716	+	19 1999 and prior to December 31, 2000, $1,650;
	12717	+	20 (3) for taxable years ending on or after December 31,
	12718	+	21 2000 and prior to December 31, 2012, $2,000;
	12719	+	22 (4) for taxable years ending on or after December 31,
	12720	+	23 2012 and prior to December 31, 2013, $2,050;
	12721	+	24 (5) for taxable years ending on or after December 31,
	12722	+	25 2013 and on or before December 31, 2022 December 31, 2023,
	12723	+	26 $2,050 plus the cost-of-living adjustment under subsection
	12724	+
	12725	+
	12726	+
	12727	+
	12728	+
	12729	+	SB1963 Enrolled - 356 - LRB103 25648 HLH 51997 b
	12730	+
	12731	+
	12732	+	SB1963 Enrolled- 357 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 357 - LRB103 25648 HLH 51997 b
	12733	+	SB1963 Enrolled - 357 - LRB103 25648 HLH 51997 b
	12734	+	1 (d-5); .
	12735	+	2 (6) for taxable years ending on or after December 31,
	12736	+	3 2023 and prior to December 31, 2024, $2,425;
	12737	+	4 (7) for taxable years ending on or after December 31,
	12738	+	5 2024 and on or before December 31, 2028, $2,050 plus the
	12739	+	6 cost-of-living adjustment under subsection (d-5).
	12740	+	7 For taxable years ending on or after December 31, 1992, a
	12741	+	8 taxpayer whose Illinois base income exceeds the basic amount
	12742	+	9 and who is claimed as a dependent on another person's tax
	12743	+	10 return under the Internal Revenue Code shall not be allowed
	12744	+	11 any basic amount under this subsection.
	12745	+	12 (c) Additional amount for individuals. In the case of an
	12746	+	13 individual taxpayer, there shall be allowed for the purpose of
	12747	+	14 subsection (a), in addition to the basic amount provided by
	12748	+	15 subsection (b), an additional exemption equal to the basic
	12749	+	16 amount for each exemption in excess of one allowable to such
	12750	+	17 individual taxpayer for the taxable year under Section 151 of
	12751	+	18 the Internal Revenue Code.
	12752	+	19 (d) Additional exemptions for an individual taxpayer and
	12753	+	20 his or her spouse. In the case of an individual taxpayer and
	12754	+	21 his or her spouse, he or she shall each be allowed additional
	12755	+	22 exemptions as follows:
	12756	+	23 (1) Additional exemption for taxpayer or spouse 65
	12757	+	24 years of age or older.
	12758	+	25 (A) For taxpayer. An additional exemption of
	12759	+	26 $1,000 for the taxpayer if he or she has attained the
	12760	+
	12761	+
	12762	+
	12763	+
	12764	+
	12765	+	SB1963 Enrolled - 357 - LRB103 25648 HLH 51997 b
	12766	+
	12767	+
	12768	+	SB1963 Enrolled- 358 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 358 - LRB103 25648 HLH 51997 b
	12769	+	SB1963 Enrolled - 358 - LRB103 25648 HLH 51997 b
	12770	+	1 age of 65 before the end of the taxable year.
	12771	+	2 (B) For spouse when a joint return is not filed. An
	12772	+	3 additional exemption of $1,000 for the spouse of the
	12773	+	4 taxpayer if a joint return is not made by the taxpayer
	12774	+	5 and his spouse, and if the spouse has attained the age
	12775	+	6 of 65 before the end of such taxable year, and, for the
	12776	+	7 calendar year in which the taxable year of the
	12777	+	8 taxpayer begins, has no gross income and is not the
	12778	+	9 dependent of another taxpayer.
	12779	+	10 (2) Additional exemption for blindness of taxpayer or
	12780	+	11 spouse.
	12781	+	12 (A) For taxpayer. An additional exemption of
	12782	+	13 $1,000 for the taxpayer if he or she is blind at the
	12783	+	14 end of the taxable year.
	12784	+	15 (B) For spouse when a joint return is not filed. An
	12785	+	16 additional exemption of $1,000 for the spouse of the
	12786	+	17 taxpayer if a separate return is made by the taxpayer,
	12787	+	18 and if the spouse is blind and, for the calendar year
	12788	+	19 in which the taxable year of the taxpayer begins, has
	12789	+	20 no gross income and is not the dependent of another
	12790	+	21 taxpayer. For purposes of this paragraph, the
	12791	+	22 determination of whether the spouse is blind shall be
	12792	+	23 made as of the end of the taxable year of the taxpayer;
	12793	+	24 except that if the spouse dies during such taxable
	12794	+	25 year such determination shall be made as of the time of
	12795	+	26 such death.
	12796	+
	12797	+
	12798	+
	12799	+
	12800	+
	12801	+	SB1963 Enrolled - 358 - LRB103 25648 HLH 51997 b
	12802	+
	12803	+
	12804	+	SB1963 Enrolled- 359 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 359 - LRB103 25648 HLH 51997 b
	12805	+	SB1963 Enrolled - 359 - LRB103 25648 HLH 51997 b
	12806	+	1 (C) Blindness defined. For purposes of this
	12807	+	2 subsection, an individual is blind only if his or her
	12808	+	3 central visual acuity does not exceed 20/200 in the
	12809	+	4 better eye with correcting lenses, or if his or her
	12810	+	5 visual acuity is greater than 20/200 but is
	12811	+	6 accompanied by a limitation in the fields of vision
	12812	+	7 such that the widest diameter of the visual fields
	12813	+	8 subtends an angle no greater than 20 degrees.
	12814	+	9 (d-5) Cost-of-living adjustment. For purposes of item (5)
	12815	+	10 of subsection (b), the cost-of-living adjustment for any
	12816	+	11 calendar year and for taxable years ending prior to the end of
	12817	+	12 the subsequent calendar year is equal to $2,050 times the
	12818	+	13 percentage (if any) by which:
	12819	+	14 (1) the Consumer Price Index for the preceding
	12820	+	15 calendar year, exceeds
	12821	+	16 (2) the Consumer Price Index for the calendar year
	12822	+	17 2011.
	12823	+	18 The Consumer Price Index for any calendar year is the
	12824	+	19 average of the Consumer Price Index as of the close of the
	12825	+	20 12-month period ending on August 31 of that calendar year.
	12826	+	21 The term "Consumer Price Index" means the last Consumer
	12827	+	22 Price Index for All Urban Consumers published by the United
	12828	+	23 States Department of Labor or any successor agency.
	12829	+	24 If any cost-of-living adjustment is not a multiple of $25,
	12830	+	25 that adjustment shall be rounded to the next lowest multiple
	12831	+	26 of $25.
	12832	+
	12833	+
	12834	+
	12835	+
	12836	+
	12837	+	SB1963 Enrolled - 359 - LRB103 25648 HLH 51997 b
	12838	+
	12839	+
	12840	+	SB1963 Enrolled- 360 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 360 - LRB103 25648 HLH 51997 b
	12841	+	SB1963 Enrolled - 360 - LRB103 25648 HLH 51997 b
	12842	+	1 (e) Cross reference. See Article 3 for the manner of
	12843	+	2 determining base income allocable to this State.
	12844	+	3 (f) Application of Section 250. Section 250 does not apply
	12845	+	4 to the amendments to this Section made by Public Act 90-613.
	12846	+	5 (g) Notwithstanding any other provision of law, for
	12847	+	6 taxable years beginning on or after January 1, 2017, no
	12848	+	7 taxpayer may claim an exemption under this Section if the
	12849	+	8 taxpayer's adjusted gross income for the taxable year exceeds
	12850	+	9 (i) $500,000, in the case of spouses filing a joint federal tax
	12851	+	10 return or (ii) $250,000, in the case of all other taxpayers.
	12852	+	11 (Source: P.A. 100-22, eff. 7-6-17; 100-865, eff. 8-14-18.)
	12853	+	12 ARTICLE 70. AVIATION FUEL
	12854	+	13 Section 70-5. The Use Tax Act is amended by changing
	12855	+	14 Section 3-87 as follows:
	12856	+	15 (35 ILCS 105/3-87)
	12857	+	16 Sec. 3-87. Sustainable Aviation Fuel Purchase Credit.
	12858	+	17 (a) From July 1, 2023 through December 31, 2032 June 1,
	12859	+	18 2023 through January 1, 2033, sustainable aviation fuel sold
	12860	+	19 to or used by an air common carrier, certified by the carrier
	12861	+	20 to the Department to be used in Illinois, earns a credit in the
	12862	+	21 amount of $1.50 per gallon of sustainable aviation fuel
	12863	+	22 purchased. The credit earned shall be referred to as the
	12864	+	23 Sustainable Aviation Fuel Purchase Credit.
	12865	+
	12866	+
	12867	+
	12868	+
	12869	+
	12870	+	SB1963 Enrolled - 360 - LRB103 25648 HLH 51997 b
	12871	+
	12872	+
	12873	+	SB1963 Enrolled- 361 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 361 - LRB103 25648 HLH 51997 b
	12874	+	SB1963 Enrolled - 361 - LRB103 25648 HLH 51997 b
	12875	+	1 Only that portion of each gallon of aviation fuel that
	12876	+	2 consists of sustainable aviation fuel, as defined in this
	12877	+	3 Section, is eligible to earn the credit.
	12878	+	4 The credit is earned at the time sustainable aviation fuel
	12879	+	5 is purchased for use in Illinois. The amount of credit that is
	12880	+	6 earned is based on the number of whole gallons of sustainable
	12881	+	7 aviation fuel purchased for use in Illinois. Partial gallons
	12882	+	8 will not earn a credit. Credits may be used at the same time as
	12883	+	9 they are earned.
	12884	+	10 For a sale or use of aviation fuel to qualify to earn the
	12885	+	11 Sustainable Aviation Fuel Purchase Credit, taxpayers must
	12886	+	12 retain in their books and records a certification from the
	12887	+	13 producer of the aviation fuel that the aviation fuel sold or
	12888	+	14 used and for which a sustainable aviation fuel purchase credit
	12889	+	15 was earned meets the definition of sustainable aviation fuel
	12890	+	16 under this Section. The documentation must include detail
	12891	+	17 sufficient for the Department to determine the number of
	12892	+	18 gallons of sustainable aviation fuel sold or used.
	12893	+	19 A Sustainable Aviation Fuel Purchase Credit earned by an
	12894	+	20 air common carrier expires on December 31, 2032. The
	12895	+	21 Sustainable Aviation Fuel Purchase Credit is non-transferable
	12896	+	22 and non-refundable. Taxpayers shall account for the earning
	12897	+	23 and usage of Sustainable Aviation Fuel Purchase Credits on
	12898	+	24 each monthly return filed with the Department, as deemed
	12899	+	25 necessary by the Department.
	12900	+	26 The purchaser of sustainable aviation fuel shall certify
	12901	+
	12902	+
	12903	+
	12904	+
	12905	+
	12906	+	SB1963 Enrolled - 361 - LRB103 25648 HLH 51997 b
	12907	+
	12908	+
	12909	+	SB1963 Enrolled- 362 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 362 - LRB103 25648 HLH 51997 b
	12910	+	SB1963 Enrolled - 362 - LRB103 25648 HLH 51997 b
	12911	+	1 to the seller of the aviation fuel that the purchaser is
	12912	+	2 satisfying all or part of its liability for the 6.25% tax under
	12913	+	3 the Use Tax Act or the Service Use Tax Act that is due on the
	12914	+	4 purchase of aviation fuel by use of the sustainable aviation
	12915	+	5 fuel purchase credit.
	12916	+	6 The Sustainable Aviation Fuel Purchase Credit
	12917	+	7 certification must be dated and shall include the name and
	12918	+	8 address of the purchaser, the purchaser's registration number,
	12919	+	9 if registered, the credit being applied, and a statement that
	12920	+	10 the State Use Tax or Service Use Tax use tax or service use tax
	12921	+	11 liability is being satisfied with the air common carrier's
	12922	+	12 accumulated sustainable aviation fuel purchase credit.
	12923	+	13 An air common carrier-purchaser of aviation fuel may
	12924	+	14 utilize the Sustainable Aviation Fuel Purchase Credit in
	12925	+	15 satisfaction of the 6.25% tax arising from the purchase of
	12926	+	16 aviation fuel, but not in satisfaction of penalty or interest.
	12927	+	17 Until January 1, 2033 July 1, 2033, on an annual basis,
	12928	+	18 running from January through December each year, no credit may
	12929	+	19 be earned by an air common carrier for soybean oil-derived
	12930	+	20 sustainable aviation fuel once air common carriers in this
	12931	+	21 State have collectively purchased sustainable aviation fuel
	12932	+	22 containing 10,000,000 gallons of soybean oil feedstock. If, in
	12933	+	23 any year, air common carriers collectively purchase
	12934	+	24 sustainable aviation fuel containing more than 10,000,000
	12935	+	25 gallons of soybean oil feedstock for use in this State, then,
	12936	+	26 in the month in which taxpayer reporting shows that the credit
	12937	+
	12938	+
	12939	+
	12940	+
	12941	+
	12942	+	SB1963 Enrolled - 362 - LRB103 25648 HLH 51997 b
	12943	+
	12944	+
	12945	+	SB1963 Enrolled- 363 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 363 - LRB103 25648 HLH 51997 b
	12946	+	SB1963 Enrolled - 363 - LRB103 25648 HLH 51997 b
	12947	+	1 earned from these purchases exceeds the cap, the Department
	12948	+	2 shall first determine the remaining number of gallons of
	12949	+	3 soybean oil feedstock available to earn the credit for that
	12950	+	4 year by subtracting from 10,000,000 the number of gallons of
	12951	+	5 soybean oil feedstock collectively purchased that year based
	12952	+	6 on the prior month's taxpayer reporting. The Department shall
	12953	+	7 then allocate the credit from these remaining gallons of
	12954	+	8 soybean oil feedstock available to earn the credit for that
	12955	+	9 year by allowing credit to each air common carrier in the same
	12956	+	10 proportion as the number of gallons of soybean oil feedstock
	12957	+	11 reported as having been purchased by each air common carrier
	12958	+	12 during the month in which the cap is exceeded is to all of the
	12959	+	13 gallons of soybean oil feedstock reported as having been
	12960	+	14 purchased during that month. The earning of any credit in
	12961	+	15 excess of this shall be disallowed for the remainder of the
	12962	+	16 year. For any credit that was used, the earning of which was
	12963	+	17 disallowed in the process described in this paragraph, any
	12964	+	18 resulting tax shall be due on or before April 20th of the year
	12965	+	19 following the year in which the 10,000,000 gallon cap on
	12966	+	20 soybean oil feedstock was exceeded and shall be reported and
	12967	+	21 paid on the aviation fuel tax return. Any credit that is earned
	12968	+	22 for the purchase of soybean oil feedstock but not timely
	12969	+	23 reported in a year in which the cap is exceeded is disallowed.
	12970	+	24 A Sustainable Aviation Fuel Purchase Credit certification
	12971	+	25 provided by the air common carrier may be used to satisfy the
	12972	+	26 retailer's or serviceman's 6.25% tax liability on aviation
	12973	+
	12974	+
	12975	+
	12976	+
	12977	+
	12978	+	SB1963 Enrolled - 363 - LRB103 25648 HLH 51997 b
	12979	+
	12980	+
	12981	+	SB1963 Enrolled- 364 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 364 - LRB103 25648 HLH 51997 b
	12982	+	SB1963 Enrolled - 364 - LRB103 25648 HLH 51997 b
	12983	+	1 fuel under the Retailers' Occupation Tax Act or Service
	12984	+	2 Occupation Tax Act for the credit claimed.
	12985	+	3 (b) As used in this Section, "sustainable aviation fuel"
	12986	+	4 means liquid fuel that meets the criteria set forth in
	12987	+	5 subsections (d) and (e) of Section 40B of the federal Internal
	12988	+	6 Revenue Code of 1986 or:
	12989	+	7 (1) consists of synthesized hydrocarbons and meets the
	12990	+	8 requirements of:
	12991	+	9 (A) the American Society for Testing and Materials
	12992	+	10 International Standard D7566; or
	12993	+	11 (B) the Fischer-Tropsch provisions of American
	12994	+	12 Society for Testing and Materials International
	12995	+	13 Standard D1655, Annex A1;
	12996	+	14 (2) prior to June 1, 2028, is derived from biomass
	12997	+	15 resources, waste streams, renewable energy sources, or
	12998	+	16 gaseous carbon oxides, and beginning on June 1, 2028 is
	12999	+	17 derived from domestic biomass resources;
	13000	+	18 (3) is not derived from any palm derivatives; and
	13001	+	19 (4) the fuel production pathway for the sustainable
	13002	+	20 aviation fuel achieves at least a 50% lifecycle greenhouse
	13003	+	21 gas emissions reduction in comparison with petroleum-based
	13004	+	22 jet fuel, as determined by a test that shows:
	13005	+	23 (A) that the fuel production pathway achieves at
	13006	+	24 least a 50% reduction of the aggregate attributional
	13007	+	25 core lifecycle emissions and the positive induced land
	13008	+	26 use change values under the lifecycle methodology for
	13009	+
	13010	+
	13011	+
	13012	+
	13013	+
	13014	+	SB1963 Enrolled - 364 - LRB103 25648 HLH 51997 b
	13015	+
	13016	+
	13017	+	SB1963 Enrolled- 365 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 365 - LRB103 25648 HLH 51997 b
	13018	+	SB1963 Enrolled - 365 - LRB103 25648 HLH 51997 b
	13019	+	1 sustainable aviation fuels adopted by the
	13020	+	2 International Civil Aviation Organization with the
	13021	+	3 agreement of the United States; or
	13022	+	4 (B) that the fuel production pathway achieves at
	13023	+	5 least a 50% reduction of the aggregate attributional
	13024	+	6 core lifecycle greenhouse gas emissions values
	13025	+	7 utilizing the most recent version of Argonne National
	13026	+	8 Laboratory's GREET model, inclusive of agricultural
	13027	+	9 practices and carbon capture and sequestration.
	13028	+	10 (Source: P.A. 102-1125, eff. 2-3-23.)
	13029	+	11 Section 70-10. The Service Use Tax Act is amended by
	13030	+	12 changing Section 3-72 as follows:
	13031	+	13 (35 ILCS 110/3-72)
	13032	+	14 Sec. 3-72. Sustainable Aviation Fuel Purchase Credit.
	13033	+	15 (a) From July 1, 2023 through December 31, 2032 June 1,
	13034	+	16 2023 through January 1, 2033, sustainable aviation fuel sold
	13035	+	17 to or used by an air common carrier, certified by the carrier
	13036	+	18 to the Department to be used in Illinois, earns a credit in the
	13037	+	19 amount of $1.50 per gallon of sustainable aviation fuel
	13038	+	20 purchased. The credit earned shall be referred to as the
	13039	+	21 Sustainable Aviation Fuel Purchase Credit.
	13040	+	22 Only that portion of each gallon of aviation fuel that
	13041	+	23 consists of sustainable aviation fuel, as defined in this
	13042	+	24 Section, is eligible to earn the credit.
	13043	+
	13044	+
	13045	+
	13046	+
	13047	+
	13048	+	SB1963 Enrolled - 365 - LRB103 25648 HLH 51997 b
	13049	+
	13050	+
	13051	+	SB1963 Enrolled- 366 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 366 - LRB103 25648 HLH 51997 b
	13052	+	SB1963 Enrolled - 366 - LRB103 25648 HLH 51997 b
	13053	+	1 The credit is earned at the time sustainable aviation fuel
	13054	+	2 is purchased for use in Illinois. The amount of credit that is
	13055	+	3 earned is based on the number of whole gallons of sustainable
	13056	+	4 aviation fuel purchased for use in Illinois. Partial gallons
	13057	+	5 will not earn a credit. Credits may be used at the same time as
	13058	+	6 they are earned.
	13059	+	7 For a sale or use of aviation fuel to qualify to earn the
	13060	+	8 Sustainable Aviation Fuel Purchase Credit, taxpayers must
	13061	+	9 retain in their books and records a certification from the
	13062	+	10 producer of the aviation fuel that the aviation fuel sold or
	13063	+	11 used and for which a sustainable aviation fuel purchase credit
	13064	+	12 was earned meets the definition of sustainable aviation fuel
	13065	+	13 under this Section. The documentation must include detail
	13066	+	14 sufficient for the Department to determine the number of
	13067	+	15 gallons of sustainable aviation fuel sold or used.
	13068	+	16 A Sustainable Aviation Fuel Purchase Credit earned by an
	13069	+	17 air common carrier expires on December 31, 2032. The
	13070	+	18 Sustainable Aviation Fuel Purchase Credit is a
	13071	+	19 non-transferable and non-refundable credit. Taxpayers shall
	13072	+	20 account for the earning and usage of Sustainable Aviation Fuel
	13073	+	21 Purchase Credits on each monthly return filed with the
	13074	+	22 Department, as deemed necessary by the Department.
	13075	+	23 The purchaser of sustainable aviation fuel shall certify
	13076	+	24 to the seller of the aviation fuel that the purchaser is
	13077	+	25 satisfying all or part of its liability for the 6.25% tax under
	13078	+	26 the Use Tax Act or the Service Use Tax Act that is due on the
	13079	+
	13080	+
	13081	+
	13082	+
	13083	+
	13084	+	SB1963 Enrolled - 366 - LRB103 25648 HLH 51997 b
	13085	+
	13086	+
	13087	+	SB1963 Enrolled- 367 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 367 - LRB103 25648 HLH 51997 b
	13088	+	SB1963 Enrolled - 367 - LRB103 25648 HLH 51997 b
	13089	+	1 purchase of aviation fuel by use of the sustainable aviation
	13090	+	2 fuel purchase credit.
	13091	+	3 The Sustainable Aviation Fuel Purchase Credit
	13092	+	4 certification must be dated and shall include the name and
	13093	+	5 address of the purchaser, the purchaser's registration number,
	13094	+	6 if registered, the credit being applied, and a statement that
	13095	+	7 the State Use Tax or Service Use Tax use tax or service use tax
	13096	+	8 liability is being satisfied with the air common carrier's
	13097	+	9 accumulated sustainable aviation fuel purchase credit.
	13098	+	10 An air common carrier-purchaser of aviation fuel may
	13099	+	11 utilize the Sustainable Aviation Fuel Purchase Credit in
	13100	+	12 satisfaction of the 6.25% tax arising from the purchase of
	13101	+	13 aviation fuel, but not in satisfaction of penalty or interest.
	13102	+	14 Until January 1, 2033 July 1, 2033, on an annual basis
	13103	+	15 running from January through December each year, no credit may
	13104	+	16 be earned by an air common carrier for soybean oil-derived
	13105	+	17 sustainable aviation fuel once air common carriers in this
	13106	+	18 State have collectively purchased sustainable aviation fuel
	13107	+	19 containing 10,000,000 gallons of soybean oil feedstock. If, in
	13108	+	20 any year, air common carriers collectively purchase
	13109	+	21 sustainable aviation fuel containing more than 10,000,000
	13110	+	22 gallons of soybean oil feedstock for use in this State, then,
	13111	+	23 in the month in which taxpayer reporting shows that the credit
	13112	+	24 earned from these purchases exceeds the cap, the Department
	13113	+	25 shall first determine the remaining number of gallons of
	13114	+	26 soybean oil feedstock available to earn the credit for that
	13115	+
	13116	+
	13117	+
	13118	+
	13119	+
	13120	+	SB1963 Enrolled - 367 - LRB103 25648 HLH 51997 b
	13121	+
	13122	+
	13123	+	SB1963 Enrolled- 368 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 368 - LRB103 25648 HLH 51997 b
	13124	+	SB1963 Enrolled - 368 - LRB103 25648 HLH 51997 b
	13125	+	1 year by subtracting from 10,000,000 the number of gallons of
	13126	+	2 soybean oil feedstock collectively purchased that year based
	13127	+	3 on the prior month's taxpayer reporting. The Department shall
	13128	+	4 then allocate the credit from these remaining gallons of
	13129	+	5 soybean oil feedstock available to earn the credit for that
	13130	+	6 year by allowing credit to each air common carrier in the same
	13131	+	7 proportion as the number of gallons of soybean oil feedstock
	13132	+	8 reported as having been purchased by each air common carrier
	13133	+	9 during the month in which the cap is exceeded is to all of the
	13134	+	10 gallons of soybean oil feedstock reported as having been
	13135	+	11 purchased during that month. The earning of any credit in
	13136	+	12 excess of this shall be disallowed for the remainder of the
	13137	+	13 year. For any credit that was used, the earning of which was
	13138	+	14 disallowed in the process described in this paragraph, any
	13139	+	15 resulting tax shall be due on or before April 20th of the year
	13140	+	16 following the year in which the 10,000,000 gallon cap on
	13141	+	17 soybean oil feedstock was exceeded and shall be reported and
	13142	+	18 paid on the aviation fuel tax return. Any credit that is earned
	13143	+	19 for the purchase of soybean oil feedstock but not timely
	13144	+	20 reported in a year in which the cap is exceeded is disallowed.
	13145	+	21 A Sustainable Aviation Fuel Purchase Credit certification
	13146	+	22 provided by the air common carrier may be used to satisfy the
	13147	+	23 retailer's or serviceman's 6.25% tax liability on aviation
	13148	+	24 fuel under the Retailers' Occupation Tax Act or Service
	13149	+	25 Occupation Tax Act for the credit claimed.
	13150	+	26 (b) As used in this Section, "sustainable aviation fuel"
	13151	+
	13152	+
	13153	+
	13154	+
	13155	+
	13156	+	SB1963 Enrolled - 368 - LRB103 25648 HLH 51997 b
	13157	+
	13158	+
	13159	+	SB1963 Enrolled- 369 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 369 - LRB103 25648 HLH 51997 b
	13160	+	SB1963 Enrolled - 369 - LRB103 25648 HLH 51997 b
	13161	+	1 means liquid fuel that meets the criteria set forth in
	13162	+	2 subsections (d) and (e) of Section 40B of the federal Internal
	13163	+	3 Revenue Code of 1986 or:
	13164	+	4 (1) consists of synthesized hydrocarbons and meets the
	13165	+	5 requirements of:
	13166	+	6 (A) the American Society for Testing and Materials
	13167	+	7 International Standard D7566; or
	13168	+	8 (B) the Fischer-Tropsch provisions of American
	13169	+	9 Society for Testing and Materials International
	13170	+	10 Standard D1655, Annex A1;
	13171	+	11 (2) prior to June 1, 2028, is derived from biomass
	13172	+	12 resources, waste streams, renewable energy sources, or
	13173	+	13 gaseous carbon oxides, and beginning on June 1, 2028 is
	13174	+	14 derived from domestic biomass resources;
	13175	+	15 (3) is not derived from any palm derivatives; and
	13176	+	16 (4) the fuel production pathway for the sustainable
	13177	+	17 aviation fuel achieves at least a 50% lifecycle greenhouse
	13178	+	18 gas emissions reduction in comparison with petroleum-based
	13179	+	19 jet fuel, as determined by a test that shows:
	13180	+	20 (A) that the fuel production pathway achieves at
	13181	+	21 least a 50% reduction of the aggregate attributional
	13182	+	22 core lifecycle emissions and the positive induced land
	13183	+	23 use change values under the lifecycle methodology for
	13184	+	24 sustainable aviation fuels adopted by the
	13185	+	25 International Civil Aviation Organization with the
	13186	+	26 agreement of the United States; or
	13187	+
	13188	+
	13189	+
	13190	+
	13191	+
	13192	+	SB1963 Enrolled - 369 - LRB103 25648 HLH 51997 b
	13193	+
	13194	+
	13195	+	SB1963 Enrolled- 370 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 370 - LRB103 25648 HLH 51997 b
	13196	+	SB1963 Enrolled - 370 - LRB103 25648 HLH 51997 b
	13197	+	1 (B) that the fuel production pathway achieves at
	13198	+	2 least a 50% reduction of the aggregate attributional
	13199	+	3 core lifecycle greenhouse gas emissions values
	13200	+	4 utilizing the most recent version of Argonne National
	13201	+	5 Laboratory's GREET model, inclusive of agricultural
	13202	+	6 practices and carbon capture and sequestration.
	13203	+	7 (Source: P.A. 102-1125, eff. 2-3-23.)
	13204	+	8 Section 70-15. The Service Occupation Tax Act is amended
	13205	+	9 by changing Section 9 as follows:
	13206	+	10 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
	13207	+	11 Sec. 9. Each serviceman required or authorized to collect
	13208	+	12 the tax herein imposed shall pay to the Department the amount
	13209	+	13 of such tax at the time when he is required to file his return
	13210	+	14 for the period during which such tax was collectible, less a
	13211	+	15 discount of 2.1% prior to January 1, 1990, and 1.75% on and
	13212	+	16 after January 1, 1990, or $5 per calendar year, whichever is
	13213	+	17 greater, which is allowed to reimburse the serviceman for
	13214	+	18 expenses incurred in collecting the tax, keeping records,
	13215	+	19 preparing and filing returns, remitting the tax and supplying
	13216	+	20 data to the Department on request. When determining the
	13217	+	21 discount allowed under this Section, servicemen shall include
	13218	+	22 the amount of tax that would have been due at the 1% rate but
	13219	+	23 for the 0% rate imposed under this amendatory Act of the 102nd
	13220	+	24 General Assembly. The discount under this Section is not
	13221	+
	13222	+
	13223	+
	13224	+
	13225	+
	13226	+	SB1963 Enrolled - 370 - LRB103 25648 HLH 51997 b
	13227	+
	13228	+
	13229	+	SB1963 Enrolled- 371 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 371 - LRB103 25648 HLH 51997 b
	13230	+	SB1963 Enrolled - 371 - LRB103 25648 HLH 51997 b
	13231	+	1 allowed for the 1.25% portion of taxes paid on aviation fuel
	13232	+	2 that is subject to the revenue use requirements of 49 U.S.C.
	13233	+	3 47107(b) and 49 U.S.C. 47133. The discount allowed under this
	13234	+	4 Section is allowed only for returns that are filed in the
	13235	+	5 manner required by this Act. The Department may disallow the
	13236	+	6 discount for servicemen whose certificate of registration is
	13237	+	7 revoked at the time the return is filed, but only if the
	13238	+	8 Department's decision to revoke the certificate of
	13239	+	9 registration has become final.
	13240	+	10 Where such tangible personal property is sold under a
	13241	+	11 conditional sales contract, or under any other form of sale
	13242	+	12 wherein the payment of the principal sum, or a part thereof, is
	13243	+	13 extended beyond the close of the period for which the return is
	13244	+	14 filed, the serviceman, in collecting the tax may collect, for
	13245	+	15 each tax return period, only the tax applicable to the part of
	13246	+	16 the selling price actually received during such tax return
	13247	+	17 period.
	13248	+	18 Except as provided hereinafter in this Section, on or
	13249	+	19 before the twentieth day of each calendar month, such
	13250	+	20 serviceman shall file a return for the preceding calendar
	13251	+	21 month in accordance with reasonable rules and regulations to
	13252	+	22 be promulgated by the Department of Revenue. Such return shall
	13253	+	23 be filed on a form prescribed by the Department and shall
	13254	+	24 contain such information as the Department may reasonably
	13255	+	25 require. The return shall include the gross receipts which
	13256	+	26 were received during the preceding calendar month or quarter
	13257	+
	13258	+
	13259	+
	13260	+
	13261	+
	13262	+	SB1963 Enrolled - 371 - LRB103 25648 HLH 51997 b
	13263	+
	13264	+
	13265	+	SB1963 Enrolled- 372 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 372 - LRB103 25648 HLH 51997 b
	13266	+	SB1963 Enrolled - 372 - LRB103 25648 HLH 51997 b
	13267	+	1 on the following items upon which tax would have been due but
	13268	+	2 for the 0% rate imposed under this amendatory Act of the 102nd
	13269	+	3 General Assembly: (i) food for human consumption that is to be
	13270	+	4 consumed off the premises where it is sold (other than
	13271	+	5 alcoholic beverages, food consisting of or infused with adult
	13272	+	6 use cannabis, soft drinks, and food that has been prepared for
	13273	+	7 immediate consumption); and (ii) food prepared for immediate
	13274	+	8 consumption and transferred incident to a sale of service
	13275	+	9 subject to this Act or the Service Use Tax Act by an entity
	13276	+	10 licensed under the Hospital Licensing Act, the Nursing Home
	13277	+	11 Care Act, the Assisted Living and Shared Housing Act, the
	13278	+	12 ID/DD Community Care Act, the MC/DD Act, the Specialized
	13279	+	13 Mental Health Rehabilitation Act of 2013, or the Child Care
	13280	+	14 Act of 1969, or an entity that holds a permit issued pursuant
	13281	+	15 to the Life Care Facilities Act. The return shall also include
	13282	+	16 the amount of tax that would have been due on the items listed
	13283	+	17 in the previous sentence but for the 0% rate imposed under this
	13284	+	18 amendatory Act of the 102nd General Assembly.
	13285	+	19 On and after January 1, 2018, with respect to servicemen
	13286	+	20 whose annual gross receipts average $20,000 or more, all
	13287	+	21 returns required to be filed pursuant to this Act shall be
	13288	+	22 filed electronically. Servicemen who demonstrate that they do
	13289	+	23 not have access to the Internet or demonstrate hardship in
	13290	+	24 filing electronically may petition the Department to waive the
	13291	+	25 electronic filing requirement.
	13292	+	26 The Department may require returns to be filed on a
	13293	+
	13294	+
	13295	+
	13296	+
	13297	+
	13298	+	SB1963 Enrolled - 372 - LRB103 25648 HLH 51997 b
	13299	+
	13300	+
	13301	+	SB1963 Enrolled- 373 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 373 - LRB103 25648 HLH 51997 b
	13302	+	SB1963 Enrolled - 373 - LRB103 25648 HLH 51997 b
	13303	+	1 quarterly basis. If so required, a return for each calendar
	13304	+	2 quarter shall be filed on or before the twentieth day of the
	13305	+	3 calendar month following the end of such calendar quarter. The
	13306	+	4 taxpayer shall also file a return with the Department for each
	13307	+	5 of the first two months of each calendar quarter, on or before
	13308	+	6 the twentieth day of the following calendar month, stating:
	13309	+	7 1. The name of the seller;
	13310	+	8 2. The address of the principal place of business from
	13311	+	9 which he engages in business as a serviceman in this
	13312	+	10 State;
	13313	+	11 3. The total amount of taxable receipts received by
	13314	+	12 him during the preceding calendar month, including
	13315	+	13 receipts from charge and time sales, but less all
	13316	+	14 deductions allowed by law;
	13317	+	15 4. The amount of credit provided in Section 2d of this
	13318	+	16 Act;
	13319	+	17 5. The amount of tax due;
	13320	+	18 5-5. The signature of the taxpayer; and
	13321	+	19 6. Such other reasonable information as the Department
	13322	+	20 may require.
	13323	+	21 Each serviceman required or authorized to collect the tax
	13324	+	22 herein imposed on aviation fuel acquired as an incident to the
	13325	+	23 purchase of a service in this State during the preceding
	13326	+	24 calendar month shall, instead of reporting and paying tax as
	13327	+	25 otherwise required by this Section, report and pay such tax on
	13328	+	26 a separate aviation fuel tax return. The requirements related
	13329	+
	13330	+
	13331	+
	13332	+
	13333	+
	13334	+	SB1963 Enrolled - 373 - LRB103 25648 HLH 51997 b
	13335	+
	13336	+
	13337	+	SB1963 Enrolled- 374 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 374 - LRB103 25648 HLH 51997 b
	13338	+	SB1963 Enrolled - 374 - LRB103 25648 HLH 51997 b
	13339	+	1 to the return shall be as otherwise provided in this Section.
	13340	+	2 Notwithstanding any other provisions of this Act to the
	13341	+	3 contrary, servicemen transferring aviation fuel incident to
	13342	+	4 sales of service shall file all aviation fuel tax returns and
	13343	+	5 shall make all aviation fuel tax payments by electronic means
	13344	+	6 in the manner and form required by the Department. For
	13345	+	7 purposes of this Section, "aviation fuel" means jet fuel and
	13346	+	8 aviation gasoline.
	13347	+	9 If a taxpayer fails to sign a return within 30 days after
	13348	+	10 the proper notice and demand for signature by the Department,
	13349	+	11 the return shall be considered valid and any amount shown to be
	13350	+	12 due on the return shall be deemed assessed.
	13351	+	13 Notwithstanding any other provision of this Act to the
	13352	+	14 contrary, servicemen subject to tax on cannabis shall file all
	13353	+	15 cannabis tax returns and shall make all cannabis tax payments
	13354	+	16 by electronic means in the manner and form required by the
	13355	+	17 Department.
	13356	+	18 Prior to October 1, 2003, and on and after September 1,
	13357	+	19 2004 a serviceman may accept a Manufacturer's Purchase Credit
	13358	+	20 certification from a purchaser in satisfaction of Service Use
	13359	+	21 Tax as provided in Section 3-70 of the Service Use Tax Act if
	13360	+	22 the purchaser provides the appropriate documentation as
	13361	+	23 required by Section 3-70 of the Service Use Tax Act. A
	13362	+	24 Manufacturer's Purchase Credit certification, accepted prior
	13363	+	25 to October 1, 2003 or on or after September 1, 2004 by a
	13364	+	26 serviceman as provided in Section 3-70 of the Service Use Tax
	13365	+
	13366	+
	13367	+
	13368	+
	13369	+
	13370	+	SB1963 Enrolled - 374 - LRB103 25648 HLH 51997 b
	13371	+
	13372	+
	13373	+	SB1963 Enrolled- 375 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 375 - LRB103 25648 HLH 51997 b
	13374	+	SB1963 Enrolled - 375 - LRB103 25648 HLH 51997 b
	13375	+	1 Act, may be used by that serviceman to satisfy Service
	13376	+	2 Occupation Tax liability in the amount claimed in the
	13377	+	3 certification, not to exceed 6.25% of the receipts subject to
	13378	+	4 tax from a qualifying purchase. A Manufacturer's Purchase
	13379	+	5 Credit reported on any original or amended return filed under
	13380	+	6 this Act after October 20, 2003 for reporting periods prior to
	13381	+	7 September 1, 2004 shall be disallowed. Manufacturer's Purchase
	13382	+	8 Credit reported on annual returns due on or after January 1,
	13383	+	9 2005 will be disallowed for periods prior to September 1,
	13384	+	10 2004. No Manufacturer's Purchase Credit may be used after
	13385	+	11 September 30, 2003 through August 31, 2004 to satisfy any tax
	13386	+	12 liability imposed under this Act, including any audit
	13387	+	13 liability.
	13388	+	14 Beginning on July 1, 2023 and through December 31, 2032, a
	13389	+	15 serviceman may accept a Sustainable Aviation Fuel Purchase
	13390	+	16 Credit certification from an air common carrier-purchaser in
	13391	+	17 satisfaction of Service Use Tax as provided in Section 3-72 of
	13392	+	18 the Service Use Tax Act if the purchaser provides the
	13393	+	19 appropriate documentation as required by Section 3-72 of the
	13394	+	20 Service Use Tax Act. A Sustainable Aviation Fuel Purchase
	13395	+	21 Credit certification accepted by a serviceman in accordance
	13396	+	22 with this paragraph may be used by that serviceman to satisfy
	13397	+	23 service occupation tax liability (but not in satisfaction of
	13398	+	24 penalty or interest) in the amount claimed in the
	13399	+	25 certification, not to exceed 6.25% of the receipts subject to
	13400	+	26 tax from a sale of aviation fuel. In addition, for a sale of
	13401	+
	13402	+
	13403	+
	13404	+
	13405	+
	13406	+	SB1963 Enrolled - 375 - LRB103 25648 HLH 51997 b
	13407	+
	13408	+
	13409	+	SB1963 Enrolled- 376 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 376 - LRB103 25648 HLH 51997 b
	13410	+	SB1963 Enrolled - 376 - LRB103 25648 HLH 51997 b
	13411	+	1 aviation fuel to qualify to earn the Sustainable Aviation Fuel
	13412	+	2 Purchase Credit, servicemen must retain in their books and
	13413	+	3 records a certification from the producer of the aviation fuel
	13414	+	4 that the aviation fuel sold by the serviceman and for which a
	13415	+	5 sustainable aviation fuel purchase credit was earned meets the
	13416	+	6 definition of sustainable aviation fuel under Section 3-72 of
	13417	+	7 the Service Use Tax Act. The documentation must include detail
	13418	+	8 sufficient for the Department to determine the number of
	13419	+	9 gallons of sustainable aviation fuel sold.
	13420	+	10 If the serviceman's average monthly tax liability to the
	13421	+	11 Department does not exceed $200, the Department may authorize
	13422	+	12 his returns to be filed on a quarter annual basis, with the
	13423	+	13 return for January, February and March of a given year being
	13424	+	14 due by April 20 of such year; with the return for April, May
	13425	+	15 and June of a given year being due by July 20 of such year;
	13426	+	16 with the return for July, August and September of a given year
	13427	+	17 being due by October 20 of such year, and with the return for
	13428	+	18 October, November and December of a given year being due by
	13429	+	19 January 20 of the following year.
	13430	+	20 If the serviceman's average monthly tax liability to the
	13431	+	21 Department does not exceed $50, the Department may authorize
	13432	+	22 his returns to be filed on an annual basis, with the return for
	13433	+	23 a given year being due by January 20 of the following year.
	13434	+	24 Such quarter annual and annual returns, as to form and
	13435	+	25 substance, shall be subject to the same requirements as
	13436	+	26 monthly returns.
	13437	+
	13438	+
	13439	+
	13440	+
	13441	+
	13442	+	SB1963 Enrolled - 376 - LRB103 25648 HLH 51997 b
	13443	+
	13444	+
	13445	+	SB1963 Enrolled- 377 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 377 - LRB103 25648 HLH 51997 b
	13446	+	SB1963 Enrolled - 377 - LRB103 25648 HLH 51997 b
	13447	+	1 Notwithstanding any other provision in this Act concerning
	13448	+	2 the time within which a serviceman may file his return, in the
	13449	+	3 case of any serviceman who ceases to engage in a kind of
	13450	+	4 business which makes him responsible for filing returns under
	13451	+	5 this Act, such serviceman shall file a final return under this
	13452	+	6 Act with the Department not more than 1 month after
	13453	+	7 discontinuing such business.
	13454	+	8 Beginning October 1, 1993, a taxpayer who has an average
	13455	+	9 monthly tax liability of $150,000 or more shall make all
	13456	+	10 payments required by rules of the Department by electronic
	13457	+	11 funds transfer. Beginning October 1, 1994, a taxpayer who has
	13458	+	12 an average monthly tax liability of $100,000 or more shall
	13459	+	13 make all payments required by rules of the Department by
	13460	+	14 electronic funds transfer. Beginning October 1, 1995, a
	13461	+	15 taxpayer who has an average monthly tax liability of $50,000
	13462	+	16 or more shall make all payments required by rules of the
	13463	+	17 Department by electronic funds transfer. Beginning October 1,
	13464	+	18 2000, a taxpayer who has an annual tax liability of $200,000 or
	13465	+	19 more shall make all payments required by rules of the
	13466	+	20 Department by electronic funds transfer. The term "annual tax
	13467	+	21 liability" shall be the sum of the taxpayer's liabilities
	13468	+	22 under this Act, and under all other State and local occupation
	13469	+	23 and use tax laws administered by the Department, for the
	13470	+	24 immediately preceding calendar year. The term "average monthly
	13471	+	25 tax liability" means the sum of the taxpayer's liabilities
	13472	+	26 under this Act, and under all other State and local occupation
	13473	+
	13474	+
	13475	+
	13476	+
	13477	+
	13478	+	SB1963 Enrolled - 377 - LRB103 25648 HLH 51997 b
	13479	+
	13480	+
	13481	+	SB1963 Enrolled- 378 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 378 - LRB103 25648 HLH 51997 b
	13482	+	SB1963 Enrolled - 378 - LRB103 25648 HLH 51997 b
	13483	+	1 and use tax laws administered by the Department, for the
	13484	+	2 immediately preceding calendar year divided by 12. Beginning
	13485	+	3 on October 1, 2002, a taxpayer who has a tax liability in the
	13486	+	4 amount set forth in subsection (b) of Section 2505-210 of the
	13487	+	5 Department of Revenue Law shall make all payments required by
	13488	+	6 rules of the Department by electronic funds transfer.
	13489	+	7 Before August 1 of each year beginning in 1993, the
	13490	+	8 Department shall notify all taxpayers required to make
	13491	+	9 payments by electronic funds transfer. All taxpayers required
	13492	+	10 to make payments by electronic funds transfer shall make those
	13493	+	11 payments for a minimum of one year beginning on October 1.
	13494	+	12 Any taxpayer not required to make payments by electronic
	13495	+	13 funds transfer may make payments by electronic funds transfer
	13496	+	14 with the permission of the Department.
	13497	+	15 All taxpayers required to make payment by electronic funds
	13498	+	16 transfer and any taxpayers authorized to voluntarily make
	13499	+	17 payments by electronic funds transfer shall make those
	13500	+	18 payments in the manner authorized by the Department.
	13501	+	19 The Department shall adopt such rules as are necessary to
	13502	+	20 effectuate a program of electronic funds transfer and the
	13503	+	21 requirements of this Section.
	13504	+	22 Where a serviceman collects the tax with respect to the
	13505	+	23 selling price of tangible personal property which he sells and
	13506	+	24 the purchaser thereafter returns such tangible personal
	13507	+	25 property and the serviceman refunds the selling price thereof
	13508	+	26 to the purchaser, such serviceman shall also refund, to the
	13509	+
	13510	+
	13511	+
	13512	+
	13513	+
	13514	+	SB1963 Enrolled - 378 - LRB103 25648 HLH 51997 b
	13515	+
	13516	+
	13517	+	SB1963 Enrolled- 379 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 379 - LRB103 25648 HLH 51997 b
	13518	+	SB1963 Enrolled - 379 - LRB103 25648 HLH 51997 b
	13519	+	1 purchaser, the tax so collected from the purchaser. When
	13520	+	2 filing his return for the period in which he refunds such tax
	13521	+	3 to the purchaser, the serviceman may deduct the amount of the
	13522	+	4 tax so refunded by him to the purchaser from any other Service
	13523	+	5 Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
	13524	+	6 Use Tax which such serviceman may be required to pay or remit
	13525	+	7 to the Department, as shown by such return, provided that the
	13526	+	8 amount of the tax to be deducted shall previously have been
	13527	+	9 remitted to the Department by such serviceman. If the
	13528	+	10 serviceman shall not previously have remitted the amount of
	13529	+	11 such tax to the Department, he shall be entitled to no
	13530	+	12 deduction hereunder upon refunding such tax to the purchaser.
	13531	+	13 If experience indicates such action to be practicable, the
	13532	+	14 Department may prescribe and furnish a combination or joint
	13533	+	15 return which will enable servicemen, who are required to file
	13534	+	16 returns hereunder and also under the Retailers' Occupation Tax
	13535	+	17 Act, the Use Tax Act or the Service Use Tax Act, to furnish all
	13536	+	18 the return information required by all said Acts on the one
	13537	+	19 form.
	13538	+	20 Where the serviceman has more than one business registered
	13539	+	21 with the Department under separate registrations hereunder,
	13540	+	22 such serviceman shall file separate returns for each
	13541	+	23 registered business.
	13542	+	24 Beginning January 1, 1990, each month the Department shall
	13543	+	25 pay into the Local Government Tax Fund the revenue realized
	13544	+	26 for the preceding month from the 1% tax imposed under this Act.
	13545	+
	13546	+
	13547	+
	13548	+
	13549	+
	13550	+	SB1963 Enrolled - 379 - LRB103 25648 HLH 51997 b
	13551	+
	13552	+
	13553	+	SB1963 Enrolled- 380 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 380 - LRB103 25648 HLH 51997 b
	13554	+	SB1963 Enrolled - 380 - LRB103 25648 HLH 51997 b
	13555	+	1 Beginning January 1, 1990, each month the Department shall
	13556	+	2 pay into the County and Mass Transit District Fund 4% of the
	13557	+	3 revenue realized for the preceding month from the 6.25%
	13558	+	4 general rate on sales of tangible personal property other than
	13559	+	5 aviation fuel sold on or after December 1, 2019. This
	13560	+	6 exception for aviation fuel only applies for so long as the
	13561	+	7 revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
	13562	+	8 47133 are binding on the State.
	13563	+	9 Beginning August 1, 2000, each month the Department shall
	13564	+	10 pay into the County and Mass Transit District Fund 20% of the
	13565	+	11 net revenue realized for the preceding month from the 1.25%
	13566	+	12 rate on the selling price of motor fuel and gasohol.
	13567	+	13 Beginning January 1, 1990, each month the Department shall
	13568	+	14 pay into the Local Government Tax Fund 16% of the revenue
	13569	+	15 realized for the preceding month from the 6.25% general rate
	13570	+	16 on transfers of tangible personal property other than aviation
	13571	+	17 fuel sold on or after December 1, 2019. This exception for
	13572	+	18 aviation fuel only applies for so long as the revenue use
	13573	+	19 requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
	13574	+	20 binding on the State.
	13575	+	21 For aviation fuel sold on or after December 1, 2019, each
	13576	+	22 month the Department shall pay into the State Aviation Program
	13577	+	23 Fund 20% of the net revenue realized for the preceding month
	13578	+	24 from the 6.25% general rate on the selling price of aviation
	13579	+	25 fuel, less an amount estimated by the Department to be
	13580	+	26 required for refunds of the 20% portion of the tax on aviation
	13581	+
	13582	+
	13583	+
	13584	+
	13585	+
	13586	+	SB1963 Enrolled - 380 - LRB103 25648 HLH 51997 b
	13587	+
	13588	+
	13589	+	SB1963 Enrolled- 381 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 381 - LRB103 25648 HLH 51997 b
	13590	+	SB1963 Enrolled - 381 - LRB103 25648 HLH 51997 b
	13591	+	1 fuel under this Act, which amount shall be deposited into the
	13592	+	2 Aviation Fuel Sales Tax Refund Fund. The Department shall only
	13593	+	3 pay moneys into the State Aviation Program Fund and the
	13594	+	4 Aviation Fuel Sales Tax Refund Fund under this Act for so long
	13595	+	5 as the revenue use requirements of 49 U.S.C. 47107(b) and 49
	13596	+	6 U.S.C. 47133 are binding on the State.
	13597	+	7 Beginning August 1, 2000, each month the Department shall
	13598	+	8 pay into the Local Government Tax Fund 80% of the net revenue
	13599	+	9 realized for the preceding month from the 1.25% rate on the
	13600	+	10 selling price of motor fuel and gasohol.
	13601	+	11 Beginning October 1, 2009, each month the Department shall
	13602	+	12 pay into the Capital Projects Fund an amount that is equal to
	13603	+	13 an amount estimated by the Department to represent 80% of the
	13604	+	14 net revenue realized for the preceding month from the sale of
	13605	+	15 candy, grooming and hygiene products, and soft drinks that had
	13606	+	16 been taxed at a rate of 1% prior to September 1, 2009 but that
	13607	+	17 are now taxed at 6.25%.
	13608	+	18 Beginning July 1, 2013, each month the Department shall
	13609	+	19 pay into the Underground Storage Tank Fund from the proceeds
	13610	+	20 collected under this Act, the Use Tax Act, the Service Use Tax
	13611	+	21 Act, and the Retailers' Occupation Tax Act an amount equal to
	13612	+	22 the average monthly deficit in the Underground Storage Tank
	13613	+	23 Fund during the prior year, as certified annually by the
	13614	+	24 Illinois Environmental Protection Agency, but the total
	13615	+	25 payment into the Underground Storage Tank Fund under this Act,
	13616	+	26 the Use Tax Act, the Service Use Tax Act, and the Retailers'
	13617	+
	13618	+
	13619	+
	13620	+
	13621	+
	13622	+	SB1963 Enrolled - 381 - LRB103 25648 HLH 51997 b
	13623	+
	13624	+
	13625	+	SB1963 Enrolled- 382 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 382 - LRB103 25648 HLH 51997 b
	13626	+	SB1963 Enrolled - 382 - LRB103 25648 HLH 51997 b
	13627	+	1 Occupation Tax Act shall not exceed $18,000,000 in any State
	13628	+	2 fiscal year. As used in this paragraph, the "average monthly
	13629	+	3 deficit" shall be equal to the difference between the average
	13630	+	4 monthly claims for payment by the fund and the average monthly
	13631	+	5 revenues deposited into the fund, excluding payments made
	13632	+	6 pursuant to this paragraph.
	13633	+	7 Beginning July 1, 2015, of the remainder of the moneys
	13634	+	8 received by the Department under the Use Tax Act, the Service
	13635	+	9 Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
	13636	+	10 each month the Department shall deposit $500,000 into the
	13637	+	11 State Crime Laboratory Fund.
	13638	+	12 Of the remainder of the moneys received by the Department
	13639	+	13 pursuant to this Act, (a) 1.75% thereof shall be paid into the
	13640	+	14 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
	13641	+	15 and after July 1, 1989, 3.8% thereof shall be paid into the
	13642	+	16 Build Illinois Fund; provided, however, that if in any fiscal
	13643	+	17 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
	13644	+	18 may be, of the moneys received by the Department and required
	13645	+	19 to be paid into the Build Illinois Fund pursuant to Section 3
	13646	+	20 of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
	13647	+	21 Act, Section 9 of the Service Use Tax Act, and Section 9 of the
	13648	+	22 Service Occupation Tax Act, such Acts being hereinafter called
	13649	+	23 the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
	13650	+	24 may be, of moneys being hereinafter called the "Tax Act
	13651	+	25 Amount", and (2) the amount transferred to the Build Illinois
	13652	+	26 Fund from the State and Local Sales Tax Reform Fund shall be
	13653	+
	13654	+
	13655	+
	13656	+
	13657	+
	13658	+	SB1963 Enrolled - 382 - LRB103 25648 HLH 51997 b
	13659	+
	13660	+
	13661	+	SB1963 Enrolled- 383 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 383 - LRB103 25648 HLH 51997 b
	13662	+	SB1963 Enrolled - 383 - LRB103 25648 HLH 51997 b
	13663	+	1 less than the Annual Specified Amount (as defined in Section 3
	13664	+	2 of the Retailers' Occupation Tax Act), an amount equal to the
	13665	+	3 difference shall be immediately paid into the Build Illinois
	13666	+	4 Fund from other moneys received by the Department pursuant to
	13667	+	5 the Tax Acts; and further provided, that if on the last
	13668	+	6 business day of any month the sum of (1) the Tax Act Amount
	13669	+	7 required to be deposited into the Build Illinois Account in
	13670	+	8 the Build Illinois Fund during such month and (2) the amount
	13671	+	9 transferred during such month to the Build Illinois Fund from
	13672	+	10 the State and Local Sales Tax Reform Fund shall have been less
	13673	+	11 than 1/12 of the Annual Specified Amount, an amount equal to
	13674	+	12 the difference shall be immediately paid into the Build
	13675	+	13 Illinois Fund from other moneys received by the Department
	13676	+	14 pursuant to the Tax Acts; and, further provided, that in no
	13677	+	15 event shall the payments required under the preceding proviso
	13678	+	16 result in aggregate payments into the Build Illinois Fund
	13679	+	17 pursuant to this clause (b) for any fiscal year in excess of
	13680	+	18 the greater of (i) the Tax Act Amount or (ii) the Annual
	13681	+	19 Specified Amount for such fiscal year; and, further provided,
	13682	+	20 that the amounts payable into the Build Illinois Fund under
	13683	+	21 this clause (b) shall be payable only until such time as the
	13684	+	22 aggregate amount on deposit under each trust indenture
	13685	+	23 securing Bonds issued and outstanding pursuant to the Build
	13686	+	24 Illinois Bond Act is sufficient, taking into account any
	13687	+	25 future investment income, to fully provide, in accordance with
	13688	+	26 such indenture, for the defeasance of or the payment of the
	13689	+
	13690	+
	13691	+
	13692	+
	13693	+
	13694	+	SB1963 Enrolled - 383 - LRB103 25648 HLH 51997 b
	13695	+
	13696	+
	13697	+	SB1963 Enrolled- 384 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 384 - LRB103 25648 HLH 51997 b
	13698	+	SB1963 Enrolled - 384 - LRB103 25648 HLH 51997 b
	13699	+	1 principal of, premium, if any, and interest on the Bonds
	13700	+	2 secured by such indenture and on any Bonds expected to be
	13701	+	3 issued thereafter and all fees and costs payable with respect
	13702	+	4 thereto, all as certified by the Director of the Bureau of the
	13703	+	5 Budget (now Governor's Office of Management and Budget). If on
	13704	+	6 the last business day of any month in which Bonds are
	13705	+	7 outstanding pursuant to the Build Illinois Bond Act, the
	13706	+	8 aggregate of the moneys deposited in the Build Illinois Bond
	13707	+	9 Account in the Build Illinois Fund in such month shall be less
	13708	+	10 than the amount required to be transferred in such month from
	13709	+	11 the Build Illinois Bond Account to the Build Illinois Bond
	13710	+	12 Retirement and Interest Fund pursuant to Section 13 of the
	13711	+	13 Build Illinois Bond Act, an amount equal to such deficiency
	13712	+	14 shall be immediately paid from other moneys received by the
	13713	+	15 Department pursuant to the Tax Acts to the Build Illinois
	13714	+	16 Fund; provided, however, that any amounts paid to the Build
	13715	+	17 Illinois Fund in any fiscal year pursuant to this sentence
	13716	+	18 shall be deemed to constitute payments pursuant to clause (b)
	13717	+	19 of the preceding sentence and shall reduce the amount
	13718	+	20 otherwise payable for such fiscal year pursuant to clause (b)
	13719	+	21 of the preceding sentence. The moneys received by the
	13720	+	22 Department pursuant to this Act and required to be deposited
	13721	+	23 into the Build Illinois Fund are subject to the pledge, claim
	13722	+	24 and charge set forth in Section 12 of the Build Illinois Bond
	13723	+	25 Act.
	13724	+	26 Subject to payment of amounts into the Build Illinois Fund
	13725	+
	13726	+
	13727	+
	13728	+
	13729	+
	13730	+	SB1963 Enrolled - 384 - LRB103 25648 HLH 51997 b
	13731	+
	13732	+
	13733	+	SB1963 Enrolled- 385 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 385 - LRB103 25648 HLH 51997 b
	13734	+	SB1963 Enrolled - 385 - LRB103 25648 HLH 51997 b
	13735	+	1 as provided in the preceding paragraph or in any amendment
	13736	+	2 thereto hereafter enacted, the following specified monthly
	13737	+	3 installment of the amount requested in the certificate of the
	13738	+	4 Chairman of the Metropolitan Pier and Exposition Authority
	13739	+	5 provided under Section 8.25f of the State Finance Act, but not
	13740	+	6 in excess of the sums designated as "Total Deposit", shall be
	13741	+	7 deposited in the aggregate from collections under Section 9 of
	13742	+	8 the Use Tax Act, Section 9 of the Service Use Tax Act, Section
	13743	+	9 9 of the Service Occupation Tax Act, and Section 3 of the
	13744	+	10 Retailers' Occupation Tax Act into the McCormick Place
	13745	+	11 Expansion Project Fund in the specified fiscal years.
	13746	+	12Fiscal YearTotal Deposit131993 $0141994 53,000,000151995 58,000,000161996 61,000,000171997 64,000,000181998 68,000,000191999 71,000,000202000 75,000,000212001 80,000,000222002 93,000,000232003 99,000,000242004103,000,000252005108,000,000 12 Fiscal Year Total Deposit 13 1993 $0 14 1994 53,000,000 15 1995 58,000,000 16 1996 61,000,000 17 1997 64,000,000 18 1998 68,000,000 19 1999 71,000,000 20 2000 75,000,000 21 2001 80,000,000 22 2002 93,000,000 23 2003 99,000,000 24 2004 103,000,000 25 2005 108,000,000
	13747	+	12 Fiscal Year Total Deposit
	13748	+	13 1993 $0
	13749	+	14 1994 53,000,000
	13750	+	15 1995 58,000,000
	13751	+	16 1996 61,000,000
	13752	+	17 1997 64,000,000
	13753	+	18 1998 68,000,000
	13754	+	19 1999 71,000,000
	13755	+	20 2000 75,000,000
	13756	+	21 2001 80,000,000
	13757	+	22 2002 93,000,000
	13758	+	23 2003 99,000,000
	13759	+	24 2004 103,000,000
	13760	+	25 2005 108,000,000
	13761	+
	13762	+
	13763	+
	13764	+
	13765	+
	13766	+	SB1963 Enrolled - 385 - LRB103 25648 HLH 51997 b
	13767	+
	13768	+
	13769	+	12 Fiscal Year Total Deposit
	13770	+	13 1993 $0
	13771	+	14 1994 53,000,000
	13772	+	15 1995 58,000,000
	13773	+	16 1996 61,000,000
	13774	+	17 1997 64,000,000
	13775	+	18 1998 68,000,000
	13776	+	19 1999 71,000,000
	13777	+	20 2000 75,000,000
	13778	+	21 2001 80,000,000
	13779	+	22 2002 93,000,000
	13780	+	23 2003 99,000,000
	13781	+	24 2004 103,000,000
	13782	+	25 2005 108,000,000
	13783	+
	13784	+
	13785	+	SB1963 Enrolled- 386 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 386 - LRB103 25648 HLH 51997 b
	13786	+	SB1963 Enrolled - 386 - LRB103 25648 HLH 51997 b
	13787	+	12006113,000,00022007119,000,00032008126,000,00042009132,000,00052010139,000,00062011146,000,00072012153,000,00082013161,000,00092014170,000,000102015179,000,000112016189,000,000122017199,000,000132018210,000,000142019221,000,000152020233,000,000162021300,000,000 172022300,000,000182023300,000,000192024 300,000,000202025 300,000,000212026 300,000,000222027 375,000,000232028 375,000,000242029 375,000,000252030 375,000,000262031 375,000,000 1 2006 113,000,000 2 2007 119,000,000 3 2008 126,000,000 4 2009 132,000,000 5 2010 139,000,000 6 2011 146,000,000 7 2012 153,000,000 8 2013 161,000,000 9 2014 170,000,000 10 2015 179,000,000 11 2016 189,000,000 12 2017 199,000,000 13 2018 210,000,000 14 2019 221,000,000 15 2020 233,000,000 16 2021 300,000,000 17 2022 300,000,000 18 2023 300,000,000 19 2024 300,000,000 20 2025 300,000,000 21 2026 300,000,000 22 2027 375,000,000 23 2028 375,000,000 24 2029 375,000,000 25 2030 375,000,000 26 2031 375,000,000
	13788	+	1 2006 113,000,000
	13789	+	2 2007 119,000,000
	13790	+	3 2008 126,000,000
	13791	+	4 2009 132,000,000
	13792	+	5 2010 139,000,000
	13793	+	6 2011 146,000,000
	13794	+	7 2012 153,000,000
	13795	+	8 2013 161,000,000
	13796	+	9 2014 170,000,000
	13797	+	10 2015 179,000,000
	13798	+	11 2016 189,000,000
	13799	+	12 2017 199,000,000
	13800	+	13 2018 210,000,000
	13801	+	14 2019 221,000,000
	13802	+	15 2020 233,000,000
	13803	+	16 2021 300,000,000
	13804	+	17 2022 300,000,000
	13805	+	18 2023 300,000,000
	13806	+	19 2024 300,000,000
	13807	+	20 2025 300,000,000
	13808	+	21 2026 300,000,000
	13809	+	22 2027 375,000,000
	13810	+	23 2028 375,000,000
	13811	+	24 2029 375,000,000
	13812	+	25 2030 375,000,000
	13813	+	26 2031 375,000,000
	13814	+
	13815	+
	13816	+
	13817	+
	13818	+
	13819	+	SB1963 Enrolled - 386 - LRB103 25648 HLH 51997 b
	13820	+
	13821	+	1 2006 113,000,000
	13822	+	2 2007 119,000,000
	13823	+	3 2008 126,000,000
	13824	+	4 2009 132,000,000
	13825	+	5 2010 139,000,000
	13826	+	6 2011 146,000,000
	13827	+	7 2012 153,000,000
	13828	+	8 2013 161,000,000
	13829	+	9 2014 170,000,000
	13830	+	10 2015 179,000,000
	13831	+	11 2016 189,000,000
	13832	+	12 2017 199,000,000
	13833	+	13 2018 210,000,000
	13834	+	14 2019 221,000,000
	13835	+	15 2020 233,000,000
	13836	+	16 2021 300,000,000
	13837	+	17 2022 300,000,000
	13838	+	18 2023 300,000,000
	13839	+	19 2024 300,000,000
	13840	+	20 2025 300,000,000
	13841	+	21 2026 300,000,000
	13842	+	22 2027 375,000,000
	13843	+	23 2028 375,000,000
	13844	+	24 2029 375,000,000
	13845	+	25 2030 375,000,000
	13846	+	26 2031 375,000,000
	13847	+
	13848	+
	13849	+	SB1963 Enrolled- 387 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 387 - LRB103 25648 HLH 51997 b
	13850	+	SB1963 Enrolled - 387 - LRB103 25648 HLH 51997 b
	13851	+	12032 375,000,00022033 375,000,00032034375,000,00042035375,000,00052036450,000,0006and 7each fiscal year 8thereafter that bonds 9are outstanding under 10Section 13.2 of the 11Metropolitan Pier and 12Exposition Authority Act, 13but not after fiscal year 2060. 1 2032 375,000,000 2 2033 375,000,000 3 2034 375,000,000 4 2035 375,000,000 5 2036 450,000,000 6 and 7 each fiscal year 8 thereafter that bonds 9 are outstanding under 10 Section 13.2 of the 11 Metropolitan Pier and 12 Exposition Authority Act, 13 but not after fiscal year 2060.
	13852	+	1 2032 375,000,000
	13853	+	2 2033 375,000,000
	13854	+	3 2034 375,000,000
	13855	+	4 2035 375,000,000
	13856	+	5 2036 450,000,000
	13857	+	6 and
	13858	+	7 each fiscal year
	13859	+	8 thereafter that bonds
	13860	+	9 are outstanding under
	13861	+	10 Section 13.2 of the
	13862	+	11 Metropolitan Pier and
	13863	+	12 Exposition Authority Act,
	13864	+	13 but not after fiscal year 2060.
	13865	+	14 Beginning July 20, 1993 and in each month of each fiscal
	13866	+	15 year thereafter, one-eighth of the amount requested in the
	13867	+	16 certificate of the Chairman of the Metropolitan Pier and
	13868	+	17 Exposition Authority for that fiscal year, less the amount
	13869	+	18 deposited into the McCormick Place Expansion Project Fund by
	13870	+	19 the State Treasurer in the respective month under subsection
	13871	+	20 (g) of Section 13 of the Metropolitan Pier and Exposition
	13872	+	21 Authority Act, plus cumulative deficiencies in the deposits
	13873	+	22 required under this Section for previous months and years,
	13874	+	23 shall be deposited into the McCormick Place Expansion Project
	13875	+	24 Fund, until the full amount requested for the fiscal year, but
	13876	+	25 not in excess of the amount specified above as "Total
	13877	+	26 Deposit", has been deposited.
	13878	+
	13879	+
	13880	+
	13881	+
	13882	+
	13883	+	SB1963 Enrolled - 387 - LRB103 25648 HLH 51997 b
	13884	+
	13885	+	1 2032 375,000,000
	13886	+	2 2033 375,000,000
	13887	+	3 2034 375,000,000
	13888	+	4 2035 375,000,000
	13889	+	5 2036 450,000,000
	13890	+	6 and
	13891	+	7 each fiscal year
	13892	+	8 thereafter that bonds
	13893	+	9 are outstanding under
	13894	+	10 Section 13.2 of the
	13895	+	11 Metropolitan Pier and
	13896	+	12 Exposition Authority Act,
	13897	+	13 but not after fiscal year 2060.
	13898	+
	13899	+
	13900	+	SB1963 Enrolled- 388 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 388 - LRB103 25648 HLH 51997 b
	13901	+	SB1963 Enrolled - 388 - LRB103 25648 HLH 51997 b
	13902	+	1 Subject to payment of amounts into the Capital Projects
	13903	+	2 Fund, the Build Illinois Fund, and the McCormick Place
	13904	+	3 Expansion Project Fund pursuant to the preceding paragraphs or
	13905	+	4 in any amendments thereto hereafter enacted, for aviation fuel
	13906	+	5 sold on or after December 1, 2019, the Department shall each
	13907	+	6 month deposit into the Aviation Fuel Sales Tax Refund Fund an
	13908	+	7 amount estimated by the Department to be required for refunds
	13909	+	8 of the 80% portion of the tax on aviation fuel under this Act.
	13910	+	9 The Department shall only deposit moneys into the Aviation
	13911	+	10 Fuel Sales Tax Refund Fund under this paragraph for so long as
	13912	+	11 the revenue use requirements of 49 U.S.C. 47107(b) and 49
	13913	+	12 U.S.C. 47133 are binding on the State.
	13914	+	13 Subject to payment of amounts into the Build Illinois Fund
	13915	+	14 and the McCormick Place Expansion Project Fund pursuant to the
	13916	+	15 preceding paragraphs or in any amendments thereto hereafter
	13917	+	16 enacted, beginning July 1, 1993 and ending on September 30,
	13918	+	17 2013, the Department shall each month pay into the Illinois
	13919	+	18 Tax Increment Fund 0.27% of 80% of the net revenue realized for
	13920	+	19 the preceding month from the 6.25% general rate on the selling
	13921	+	20 price of tangible personal property.
	13922	+	21 Subject to payment of amounts into the Build Illinois Fund
	13923	+	22 and the McCormick Place Expansion Project Fund pursuant to the
	13924	+	23 preceding paragraphs or in any amendments thereto hereafter
	13925	+	24 enacted, beginning with the receipt of the first report of
	13926	+	25 taxes paid by an eligible business and continuing for a
	13927	+	26 25-year period, the Department shall each month pay into the
	13928	+
	13929	+
	13930	+
	13931	+
	13932	+
	13933	+	SB1963 Enrolled - 388 - LRB103 25648 HLH 51997 b
	13934	+
	13935	+
	13936	+	SB1963 Enrolled- 389 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 389 - LRB103 25648 HLH 51997 b
	13937	+	SB1963 Enrolled - 389 - LRB103 25648 HLH 51997 b
	13938	+	1 Energy Infrastructure Fund 80% of the net revenue realized
	13939	+	2 from the 6.25% general rate on the selling price of
	13940	+	3 Illinois-mined coal that was sold to an eligible business. For
	13941	+	4 purposes of this paragraph, the term "eligible business" means
	13942	+	5 a new electric generating facility certified pursuant to
	13943	+	6 Section 605-332 of the Department of Commerce and Economic
	13944	+	7 Opportunity Law of the Civil Administrative Code of Illinois.
	13945	+	8 Subject to payment of amounts into the Build Illinois
	13946	+	9 Fund, the McCormick Place Expansion Project Fund, the Illinois
	13947	+	10 Tax Increment Fund, and the Energy Infrastructure Fund
	13948	+	11 pursuant to the preceding paragraphs or in any amendments to
	13949	+	12 this Section hereafter enacted, beginning on the first day of
	13950	+	13 the first calendar month to occur on or after August 26, 2014
	13951	+	14 (the effective date of Public Act 98-1098), each month, from
	13952	+	15 the collections made under Section 9 of the Use Tax Act,
	13953	+	16 Section 9 of the Service Use Tax Act, Section 9 of the Service
	13954	+	17 Occupation Tax Act, and Section 3 of the Retailers' Occupation
	13955	+	18 Tax Act, the Department shall pay into the Tax Compliance and
	13956	+	19 Administration Fund, to be used, subject to appropriation, to
	13957	+	20 fund additional auditors and compliance personnel at the
	13958	+	21 Department of Revenue, an amount equal to 1/12 of 5% of 80% of
	13959	+	22 the cash receipts collected during the preceding fiscal year
	13960	+	23 by the Audit Bureau of the Department under the Use Tax Act,
	13961	+	24 the Service Use Tax Act, the Service Occupation Tax Act, the
	13962	+	25 Retailers' Occupation Tax Act, and associated local occupation
	13963	+	26 and use taxes administered by the Department.
	13964	+
	13965	+
	13966	+
	13967	+
	13968	+
	13969	+	SB1963 Enrolled - 389 - LRB103 25648 HLH 51997 b
	13970	+
	13971	+
	13972	+	SB1963 Enrolled- 390 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 390 - LRB103 25648 HLH 51997 b
	13973	+	SB1963 Enrolled - 390 - LRB103 25648 HLH 51997 b
	13974	+	1 Subject to payments of amounts into the Build Illinois
	13975	+	2 Fund, the McCormick Place Expansion Project Fund, the Illinois
	13976	+	3 Tax Increment Fund, the Energy Infrastructure Fund, and the
	13977	+	4 Tax Compliance and Administration Fund as provided in this
	13978	+	5 Section, beginning on July 1, 2018 the Department shall pay
	13979	+	6 each month into the Downstate Public Transportation Fund the
	13980	+	7 moneys required to be so paid under Section 2-3 of the
	13981	+	8 Downstate Public Transportation Act.
	13982	+	9 Subject to successful execution and delivery of a
	13983	+	10 public-private agreement between the public agency and private
	13984	+	11 entity and completion of the civic build, beginning on July 1,
	13985	+	12 2023, of the remainder of the moneys received by the
	13986	+	13 Department under the Use Tax Act, the Service Use Tax Act, the
	13987	+	14 Service Occupation Tax Act, and this Act, the Department shall
	13988	+	15 deposit the following specified deposits in the aggregate from
	13989	+	16 collections under the Use Tax Act, the Service Use Tax Act, the
	13990	+	17 Service Occupation Tax Act, and the Retailers' Occupation Tax
	13991	+	18 Act, as required under Section 8.25g of the State Finance Act
	13992	+	19 for distribution consistent with the Public-Private
	13993	+	20 Partnership for Civic and Transit Infrastructure Project Act.
	13994	+	21 The moneys received by the Department pursuant to this Act and
	13995	+	22 required to be deposited into the Civic and Transit
	13996	+	23 Infrastructure Fund are subject to the pledge, claim and
	13997	+	24 charge set forth in Section 25-55 of the Public-Private
	13998	+	25 Partnership for Civic and Transit Infrastructure Project Act.
	13999	+	26 As used in this paragraph, "civic build", "private entity",
	14000	+
	14001	+
	14002	+
	14003	+
	14004	+
	14005	+	SB1963 Enrolled - 390 - LRB103 25648 HLH 51997 b
	14006	+
	14007	+
	14008	+	SB1963 Enrolled- 391 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 391 - LRB103 25648 HLH 51997 b
	14009	+	SB1963 Enrolled - 391 - LRB103 25648 HLH 51997 b
	14010	+	1 "public-private agreement", and "public agency" have the
	14011	+	2 meanings provided in Section 25-10 of the Public-Private
	14012	+	3 Partnership for Civic and Transit Infrastructure Project Act.
	14013	+	4 Fiscal Year............................Total Deposit
	14014	+	5 2024....................................$200,000,000
	14015	+	6 2025....................................$206,000,000
	14016	+	7 2026....................................$212,200,000
	14017	+	8 2027....................................$218,500,000
	14018	+	9 2028....................................$225,100,000
	14019	+	10 2029....................................$288,700,000
	14020	+	11 2030....................................$298,900,000
	14021	+	12 2031....................................$309,300,000
	14022	+	13 2032....................................$320,100,000
	14023	+	14 2033....................................$331,200,000
	14024	+	15 2034....................................$341,200,000
	14025	+	16 2035....................................$351,400,000
	14026	+	17 2036....................................$361,900,000
	14027	+	18 2037....................................$372,800,000
	14028	+	19 2038....................................$384,000,000
	14029	+	20 2039....................................$395,500,000
	14030	+	21 2040....................................$407,400,000
	14031	+	22 2041....................................$419,600,000
	14032	+	23 2042....................................$432,200,000
	14033	+	24 2043....................................$445,100,000
	14034	+	25 Beginning July 1, 2021 and until July 1, 2022, subject to
	14035	+	26 the payment of amounts into the County and Mass Transit
	14036	+
	14037	+
	14038	+
	14039	+
	14040	+
	14041	+	SB1963 Enrolled - 391 - LRB103 25648 HLH 51997 b
	14042	+
	14043	+
	14044	+	SB1963 Enrolled- 392 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 392 - LRB103 25648 HLH 51997 b
	14045	+	SB1963 Enrolled - 392 - LRB103 25648 HLH 51997 b
	14046	+	1 District Fund, the Local Government Tax Fund, the Build
	14047	+	2 Illinois Fund, the McCormick Place Expansion Project Fund, the
	14048	+	3 Illinois Tax Increment Fund, the Energy Infrastructure Fund,
	14049	+	4 and the Tax Compliance and Administration Fund as provided in
	14050	+	5 this Section, the Department shall pay each month into the
	14051	+	6 Road Fund the amount estimated to represent 16% of the net
	14052	+	7 revenue realized from the taxes imposed on motor fuel and
	14053	+	8 gasohol. Beginning July 1, 2022 and until July 1, 2023,
	14054	+	9 subject to the payment of amounts into the County and Mass
	14055	+	10 Transit District Fund, the Local Government Tax Fund, the
	14056	+	11 Build Illinois Fund, the McCormick Place Expansion Project
	14057	+	12 Fund, the Illinois Tax Increment Fund, the Energy
	14058	+	13 Infrastructure Fund, and the Tax Compliance and Administration
	14059	+	14 Fund as provided in this Section, the Department shall pay
	14060	+	15 each month into the Road Fund the amount estimated to
	14061	+	16 represent 32% of the net revenue realized from the taxes
	14062	+	17 imposed on motor fuel and gasohol. Beginning July 1, 2023 and
	14063	+	18 until July 1, 2024, subject to the payment of amounts into the
	14064	+	19 County and Mass Transit District Fund, the Local Government
	14065	+	20 Tax Fund, the Build Illinois Fund, the McCormick Place
	14066	+	21 Expansion Project Fund, the Illinois Tax Increment Fund, the
	14067	+	22 Energy Infrastructure Fund, and the Tax Compliance and
	14068	+	23 Administration Fund as provided in this Section, the
	14069	+	24 Department shall pay each month into the Road Fund the amount
	14070	+	25 estimated to represent 48% of the net revenue realized from
	14071	+	26 the taxes imposed on motor fuel and gasohol. Beginning July 1,
	14072	+
	14073	+
	14074	+
	14075	+
	14076	+
	14077	+	SB1963 Enrolled - 392 - LRB103 25648 HLH 51997 b
	14078	+
	14079	+
	14080	+	SB1963 Enrolled- 393 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 393 - LRB103 25648 HLH 51997 b
	14081	+	SB1963 Enrolled - 393 - LRB103 25648 HLH 51997 b
	14082	+	1 2024 and until July 1, 2025, subject to the payment of amounts
	14083	+	2 into the County and Mass Transit District Fund, the Local
	14084	+	3 Government Tax Fund, the Build Illinois Fund, the McCormick
	14085	+	4 Place Expansion Project Fund, the Illinois Tax Increment Fund,
	14086	+	5 the Energy Infrastructure Fund, and the Tax Compliance and
	14087	+	6 Administration Fund as provided in this Section, the
	14088	+	7 Department shall pay each month into the Road Fund the amount
	14089	+	8 estimated to represent 64% of the net revenue realized from
	14090	+	9 the taxes imposed on motor fuel and gasohol. Beginning on July
	14091	+	10 1, 2025, subject to the payment of amounts into the County and
	14092	+	11 Mass Transit District Fund, the Local Government Tax Fund, the
	14093	+	12 Build Illinois Fund, the McCormick Place Expansion Project
	14094	+	13 Fund, the Illinois Tax Increment Fund, the Energy
	14095	+	14 Infrastructure Fund, and the Tax Compliance and Administration
	14096	+	15 Fund as provided in this Section, the Department shall pay
	14097	+	16 each month into the Road Fund the amount estimated to
	14098	+	17 represent 80% of the net revenue realized from the taxes
	14099	+	18 imposed on motor fuel and gasohol. As used in this paragraph
	14100	+	19 "motor fuel" has the meaning given to that term in Section 1.1
	14101	+	20 of the Motor Fuel Tax Law, and "gasohol" has the meaning given
	14102	+	21 to that term in Section 3-40 of the Use Tax Act.
	14103	+	22 Of the remainder of the moneys received by the Department
	14104	+	23 pursuant to this Act, 75% shall be paid into the General
	14105	+	24 Revenue Fund of the State Treasury and 25% shall be reserved in
	14106	+	25 a special account and used only for the transfer to the Common
	14107	+	26 School Fund as part of the monthly transfer from the General
	14108	+
	14109	+
	14110	+
	14111	+
	14112	+
	14113	+	SB1963 Enrolled - 393 - LRB103 25648 HLH 51997 b
	14114	+
	14115	+
	14116	+	SB1963 Enrolled- 394 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 394 - LRB103 25648 HLH 51997 b
	14117	+	SB1963 Enrolled - 394 - LRB103 25648 HLH 51997 b
	14118	+	1 Revenue Fund in accordance with Section 8a of the State
	14119	+	2 Finance Act.
	14120	+	3 The Department may, upon separate written notice to a
	14121	+	4 taxpayer, require the taxpayer to prepare and file with the
	14122	+	5 Department on a form prescribed by the Department within not
	14123	+	6 less than 60 days after receipt of the notice an annual
	14124	+	7 information return for the tax year specified in the notice.
	14125	+	8 Such annual return to the Department shall include a statement
	14126	+	9 of gross receipts as shown by the taxpayer's last Federal
	14127	+	10 income tax return. If the total receipts of the business as
	14128	+	11 reported in the Federal income tax return do not agree with the
	14129	+	12 gross receipts reported to the Department of Revenue for the
	14130	+	13 same period, the taxpayer shall attach to his annual return a
	14131	+	14 schedule showing a reconciliation of the 2 amounts and the
	14132	+	15 reasons for the difference. The taxpayer's annual return to
	14133	+	16 the Department shall also disclose the cost of goods sold by
	14134	+	17 the taxpayer during the year covered by such return, opening
	14135	+	18 and closing inventories of such goods for such year, cost of
	14136	+	19 goods used from stock or taken from stock and given away by the
	14137	+	20 taxpayer during such year, pay roll information of the
	14138	+	21 taxpayer's business during such year and any additional
	14139	+	22 reasonable information which the Department deems would be
	14140	+	23 helpful in determining the accuracy of the monthly, quarterly
	14141	+	24 or annual returns filed by such taxpayer as hereinbefore
	14142	+	25 provided for in this Section.
	14143	+	26 If the annual information return required by this Section
	14144	+
	14145	+
	14146	+
	14147	+
	14148	+
	14149	+	SB1963 Enrolled - 394 - LRB103 25648 HLH 51997 b
	14150	+
	14151	+
	14152	+	SB1963 Enrolled- 395 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 395 - LRB103 25648 HLH 51997 b
	14153	+	SB1963 Enrolled - 395 - LRB103 25648 HLH 51997 b
	14154	+	1 is not filed when and as required, the taxpayer shall be liable
	14155	+	2 as follows:
	14156	+	3 (i) Until January 1, 1994, the taxpayer shall be
	14157	+	4 liable for a penalty equal to 1/6 of 1% of the tax due from
	14158	+	5 such taxpayer under this Act during the period to be
	14159	+	6 covered by the annual return for each month or fraction of
	14160	+	7 a month until such return is filed as required, the
	14161	+	8 penalty to be assessed and collected in the same manner as
	14162	+	9 any other penalty provided for in this Act.
	14163	+	10 (ii) On and after January 1, 1994, the taxpayer shall
	14164	+	11 be liable for a penalty as described in Section 3-4 of the
	14165	+	12 Uniform Penalty and Interest Act.
	14166	+	13 The chief executive officer, proprietor, owner or highest
	14167	+	14 ranking manager shall sign the annual return to certify the
	14168	+	15 accuracy of the information contained therein. Any person who
	14169	+	16 willfully signs the annual return containing false or
	14170	+	17 inaccurate information shall be guilty of perjury and punished
	14171	+	18 accordingly. The annual return form prescribed by the
	14172	+	19 Department shall include a warning that the person signing the
	14173	+	20 return may be liable for perjury.
	14174	+	21 The foregoing portion of this Section concerning the
	14175	+	22 filing of an annual information return shall not apply to a
	14176	+	23 serviceman who is not required to file an income tax return
	14177	+	24 with the United States Government.
	14178	+	25 As soon as possible after the first day of each month, upon
	14179	+	26 certification of the Department of Revenue, the Comptroller
	14180	+
	14181	+
	14182	+
	14183	+
	14184	+
	14185	+	SB1963 Enrolled - 395 - LRB103 25648 HLH 51997 b
	14186	+
	14187	+
	14188	+	SB1963 Enrolled- 396 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 396 - LRB103 25648 HLH 51997 b
	14189	+	SB1963 Enrolled - 396 - LRB103 25648 HLH 51997 b
	14190	+	1 shall order transferred and the Treasurer shall transfer from
	14191	+	2 the General Revenue Fund to the Motor Fuel Tax Fund an amount
	14192	+	3 equal to 1.7% of 80% of the net revenue realized under this Act
	14193	+	4 for the second preceding month. Beginning April 1, 2000, this
	14194	+	5 transfer is no longer required and shall not be made.
	14195	+	6 Net revenue realized for a month shall be the revenue
	14196	+	7 collected by the State pursuant to this Act, less the amount
	14197	+	8 paid out during that month as refunds to taxpayers for
	14198	+	9 overpayment of liability.
	14199	+	10 For greater simplicity of administration, it shall be
	14200	+	11 permissible for manufacturers, importers and wholesalers whose
	14201	+	12 products are sold by numerous servicemen in Illinois, and who
	14202	+	13 wish to do so, to assume the responsibility for accounting and
	14203	+	14 paying to the Department all tax accruing under this Act with
	14204	+	15 respect to such sales, if the servicemen who are affected do
	14205	+	16 not make written objection to the Department to this
	14206	+	17 arrangement.
	14207	+	18 (Source: P.A. 101-10, Article 15, Section 15-20, eff. 6-5-19;
	14208	+	19 101-10, Article 25, Section 25-115, eff. 6-5-19; 101-27, eff.
	14209	+	20 6-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
	14210	+	21 101-636, eff. 6-10-20; 102-700, eff. 4-19-22.)
	14211	+	22 Section 70-20. The Retailers' Occupation Tax Act is
	14212	+	23 amended by changing Section 3 as follows:
	14213	+	24 (35 ILCS 120/3) (from Ch. 120, par. 442)
	14214	+
	14215	+
	14216	+
	14217	+
	14218	+
	14219	+	SB1963 Enrolled - 396 - LRB103 25648 HLH 51997 b
	14220	+
	14221	+
	14222	+	SB1963 Enrolled- 397 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 397 - LRB103 25648 HLH 51997 b
	14223	+	SB1963 Enrolled - 397 - LRB103 25648 HLH 51997 b
	14224	+	1 Sec. 3. Except as provided in this Section, on or before
	14225	+	2 the twentieth day of each calendar month, every person engaged
	14226	+	3 in the business of selling tangible personal property at
	14227	+	4 retail in this State during the preceding calendar month shall
	14228	+	5 file a return with the Department, stating:
	14229	+	6 1. The name of the seller;
	14230	+	7 2. His residence address and the address of his
	14231	+	8 principal place of business and the address of the
	14232	+	9 principal place of business (if that is a different
	14233	+	10 address) from which he engages in the business of selling
	14234	+	11 tangible personal property at retail in this State;
	14235	+	12 3. Total amount of receipts received by him during the
	14236	+	13 preceding calendar month or quarter, as the case may be,
	14237	+	14 from sales of tangible personal property, and from
	14238	+	15 services furnished, by him during such preceding calendar
	14239	+	16 month or quarter;
	14240	+	17 4. Total amount received by him during the preceding
	14241	+	18 calendar month or quarter on charge and time sales of
	14242	+	19 tangible personal property, and from services furnished,
	14243	+	20 by him prior to the month or quarter for which the return
	14244	+	21 is filed;
	14245	+	22 5. Deductions allowed by law;
	14246	+	23 6. Gross receipts which were received by him during
	14247	+	24 the preceding calendar month or quarter and upon the basis
	14248	+	25 of which the tax is imposed, including gross receipts on
	14249	+	26 food for human consumption that is to be consumed off the
	14250	+
	14251	+
	14252	+
	14253	+
	14254	+
	14255	+	SB1963 Enrolled - 397 - LRB103 25648 HLH 51997 b
	14256	+
	14257	+
	14258	+	SB1963 Enrolled- 398 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 398 - LRB103 25648 HLH 51997 b
	14259	+	SB1963 Enrolled - 398 - LRB103 25648 HLH 51997 b
	14260	+	1 premises where it is sold (other than alcoholic beverages,
	14261	+	2 food consisting of or infused with adult use cannabis,
	14262	+	3 soft drinks, and food that has been prepared for immediate
	14263	+	4 consumption) which were received during the preceding
	14264	+	5 calendar month or quarter and upon which tax would have
	14265	+	6 been due but for the 0% rate imposed under Public Act
	14266	+	7 102-700 this amendatory Act of the 102nd General Assembly;
	14267	+	8 7. The amount of credit provided in Section 2d of this
	14268	+	9 Act;
	14269	+	10 8. The amount of tax due, including the amount of tax
	14270	+	11 that would have been due on food for human consumption
	14271	+	12 that is to be consumed off the premises where it is sold
	14272	+	13 (other than alcoholic beverages, food consisting of or
	14273	+	14 infused with adult use cannabis, soft drinks, and food
	14274	+	15 that has been prepared for immediate consumption) but for
	14275	+	16 the 0% rate imposed under Public Act 102-700 this
	14276	+	17 amendatory Act of the 102nd General Assembly;
	14277	+	18 9. The signature of the taxpayer; and
	14278	+	19 10. Such other reasonable information as the
	14279	+	20 Department may require.
	14280	+	21 On and after January 1, 2018, except for returns required
	14281	+	22 to be filed prior to January 1, 2023 for motor vehicles,
	14282	+	23 watercraft, aircraft, and trailers that are required to be
	14283	+	24 registered with an agency of this State, with respect to
	14284	+	25 retailers whose annual gross receipts average $20,000 or more,
	14285	+	26 all returns required to be filed pursuant to this Act shall be
	14286	+
	14287	+
	14288	+
	14289	+
	14290	+
	14291	+	SB1963 Enrolled - 398 - LRB103 25648 HLH 51997 b
	14292	+
	14293	+
	14294	+	SB1963 Enrolled- 399 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 399 - LRB103 25648 HLH 51997 b
	14295	+	SB1963 Enrolled - 399 - LRB103 25648 HLH 51997 b
	14296	+	1 filed electronically. On and after January 1, 2023, with
	14297	+	2 respect to retailers whose annual gross receipts average
	14298	+	3 $20,000 or more, all returns required to be filed pursuant to
	14299	+	4 this Act, including, but not limited to, returns for motor
	14300	+	5 vehicles, watercraft, aircraft, and trailers that are required
	14301	+	6 to be registered with an agency of this State, shall be filed
	14302	+	7 electronically. Retailers who demonstrate that they do not
	14303	+	8 have access to the Internet or demonstrate hardship in filing
	14304	+	9 electronically may petition the Department to waive the
	14305	+	10 electronic filing requirement.
	14306	+	11 If a taxpayer fails to sign a return within 30 days after
	14307	+	12 the proper notice and demand for signature by the Department,
	14308	+	13 the return shall be considered valid and any amount shown to be
	14309	+	14 due on the return shall be deemed assessed.
	14310	+	15 Each return shall be accompanied by the statement of
	14311	+	16 prepaid tax issued pursuant to Section 2e for which credit is
	14312	+	17 claimed.
	14313	+	18 Prior to October 1, 2003, and on and after September 1,
	14314	+	19 2004 a retailer may accept a Manufacturer's Purchase Credit
	14315	+	20 certification from a purchaser in satisfaction of Use Tax as
	14316	+	21 provided in Section 3-85 of the Use Tax Act if the purchaser
	14317	+	22 provides the appropriate documentation as required by Section
	14318	+	23 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
	14319	+	24 certification, accepted by a retailer prior to October 1, 2003
	14320	+	25 and on and after September 1, 2004 as provided in Section 3-85
	14321	+	26 of the Use Tax Act, may be used by that retailer to satisfy
	14322	+
	14323	+
	14324	+
	14325	+
	14326	+
	14327	+	SB1963 Enrolled - 399 - LRB103 25648 HLH 51997 b
	14328	+
	14329	+
	14330	+	SB1963 Enrolled- 400 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 400 - LRB103 25648 HLH 51997 b
	14331	+	SB1963 Enrolled - 400 - LRB103 25648 HLH 51997 b
	14332	+	1 Retailers' Occupation Tax liability in the amount claimed in
	14333	+	2 the certification, not to exceed 6.25% of the receipts subject
	14334	+	3 to tax from a qualifying purchase. A Manufacturer's Purchase
	14335	+	4 Credit reported on any original or amended return filed under
	14336	+	5 this Act after October 20, 2003 for reporting periods prior to
	14337	+	6 September 1, 2004 shall be disallowed. Manufacturer's Purchase
	14338	+	7 Credit reported on annual returns due on or after January 1,
	14339	+	8 2005 will be disallowed for periods prior to September 1,
	14340	+	9 2004. No Manufacturer's Purchase Credit may be used after
	14341	+	10 September 30, 2003 through August 31, 2004 to satisfy any tax
	14342	+	11 liability imposed under this Act, including any audit
	14343	+	12 liability.
	14344	+	13 Beginning on July 1, 2023 and through December 31, 2032, a
	14345	+	14 retailer may accept a Sustainable Aviation Fuel Purchase
	14346	+	15 Credit certification from an air common carrier-purchaser in
	14347	+	16 satisfaction of Use Tax on aviation fuel as provided in
	14348	+	17 Section 3-87 of the Use Tax Act if the purchaser provides the
	14349	+	18 appropriate documentation as required by Section 3-87 of the
	14350	+	19 Use Tax Act. A Sustainable Aviation Fuel Purchase Credit
	14351	+	20 certification accepted by a retailer in accordance with this
	14352	+	21 paragraph may be used by that retailer to satisfy Retailers'
	14353	+	22 Occupation Tax liability (but not in satisfaction of penalty
	14354	+	23 or interest) in the amount claimed in the certification, not
	14355	+	24 to exceed 6.25% of the receipts subject to tax from a sale of
	14356	+	25 aviation fuel. In addition, for a sale of aviation fuel to
	14357	+	26 qualify to earn the Sustainable Aviation Fuel Purchase Credit,
	14358	+
	14359	+
	14360	+
	14361	+
	14362	+
	14363	+	SB1963 Enrolled - 400 - LRB103 25648 HLH 51997 b
	14364	+
	14365	+
	14366	+	SB1963 Enrolled- 401 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 401 - LRB103 25648 HLH 51997 b
	14367	+	SB1963 Enrolled - 401 - LRB103 25648 HLH 51997 b
	14368	+	1 retailers must retain in their books and records a
	14369	+	2 certification from the producer of the aviation fuel that the
	14370	+	3 aviation fuel sold by the retailer and for which a sustainable
	14371	+	4 aviation fuel purchase credit was earned meets the definition
	14372	+	5 of sustainable aviation fuel under Section 3-87 of the Use Tax
	14373	+	6 Act. The documentation must include detail sufficient for the
	14374	+	7 Department to determine the number of gallons of sustainable
	14375	+	8 aviation fuel sold.
	14376	+	9 The Department may require returns to be filed on a
	14377	+	10 quarterly basis. If so required, a return for each calendar
	14378	+	11 quarter shall be filed on or before the twentieth day of the
	14379	+	12 calendar month following the end of such calendar quarter. The
	14380	+	13 taxpayer shall also file a return with the Department for each
	14381	+	14 of the first two months of each calendar quarter, on or before
	14382	+	15 the twentieth day of the following calendar month, stating:
	14383	+	16 1. The name of the seller;
	14384	+	17 2. The address of the principal place of business from
	14385	+	18 which he engages in the business of selling tangible
	14386	+	19 personal property at retail in this State;
	14387	+	20 3. The total amount of taxable receipts received by
	14388	+	21 him during the preceding calendar month from sales of
	14389	+	22 tangible personal property by him during such preceding
	14390	+	23 calendar month, including receipts from charge and time
	14391	+	24 sales, but less all deductions allowed by law;
	14392	+	25 4. The amount of credit provided in Section 2d of this
	14393	+	26 Act;
	14394	+
	14395	+
	14396	+
	14397	+
	14398	+
	14399	+	SB1963 Enrolled - 401 - LRB103 25648 HLH 51997 b
	14400	+
	14401	+
	14402	+	SB1963 Enrolled- 402 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 402 - LRB103 25648 HLH 51997 b
	14403	+	SB1963 Enrolled - 402 - LRB103 25648 HLH 51997 b
	14404	+	1 5. The amount of tax due; and
	14405	+	2 6. Such other reasonable information as the Department
	14406	+	3 may require.
	14407	+	4 Every person engaged in the business of selling aviation
	14408	+	5 fuel at retail in this State during the preceding calendar
	14409	+	6 month shall, instead of reporting and paying tax as otherwise
	14410	+	7 required by this Section, report and pay such tax on a separate
	14411	+	8 aviation fuel tax return. The requirements related to the
	14412	+	9 return shall be as otherwise provided in this Section.
	14413	+	10 Notwithstanding any other provisions of this Act to the
	14414	+	11 contrary, retailers selling aviation fuel shall file all
	14415	+	12 aviation fuel tax returns and shall make all aviation fuel tax
	14416	+	13 payments by electronic means in the manner and form required
	14417	+	14 by the Department. For purposes of this Section, "aviation
	14418	+	15 fuel" means jet fuel and aviation gasoline.
	14419	+	16 Beginning on October 1, 2003, any person who is not a
	14420	+	17 licensed distributor, importing distributor, or manufacturer,
	14421	+	18 as defined in the Liquor Control Act of 1934, but is engaged in
	14422	+	19 the business of selling, at retail, alcoholic liquor shall
	14423	+	20 file a statement with the Department of Revenue, in a format
	14424	+	21 and at a time prescribed by the Department, showing the total
	14425	+	22 amount paid for alcoholic liquor purchased during the
	14426	+	23 preceding month and such other information as is reasonably
	14427	+	24 required by the Department. The Department may adopt rules to
	14428	+	25 require that this statement be filed in an electronic or
	14429	+	26 telephonic format. Such rules may provide for exceptions from
	14430	+
	14431	+
	14432	+
	14433	+
	14434	+
	14435	+	SB1963 Enrolled - 402 - LRB103 25648 HLH 51997 b
	14436	+
	14437	+
	14438	+	SB1963 Enrolled- 403 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 403 - LRB103 25648 HLH 51997 b
	14439	+	SB1963 Enrolled - 403 - LRB103 25648 HLH 51997 b
	14440	+	1 the filing requirements of this paragraph. For the purposes of
	14441	+	2 this paragraph, the term "alcoholic liquor" shall have the
	14442	+	3 meaning prescribed in the Liquor Control Act of 1934.
	14443	+	4 Beginning on October 1, 2003, every distributor, importing
	14444	+	5 distributor, and manufacturer of alcoholic liquor as defined
	14445	+	6 in the Liquor Control Act of 1934, shall file a statement with
	14446	+	7 the Department of Revenue, no later than the 10th day of the
	14447	+	8 month for the preceding month during which transactions
	14448	+	9 occurred, by electronic means, showing the total amount of
	14449	+	10 gross receipts from the sale of alcoholic liquor sold or
	14450	+	11 distributed during the preceding month to purchasers;
	14451	+	12 identifying the purchaser to whom it was sold or distributed;
	14452	+	13 the purchaser's tax registration number; and such other
	14453	+	14 information reasonably required by the Department. A
	14454	+	15 distributor, importing distributor, or manufacturer of
	14455	+	16 alcoholic liquor must personally deliver, mail, or provide by
	14456	+	17 electronic means to each retailer listed on the monthly
	14457	+	18 statement a report containing a cumulative total of that
	14458	+	19 distributor's, importing distributor's, or manufacturer's
	14459	+	20 total sales of alcoholic liquor to that retailer no later than
	14460	+	21 the 10th day of the month for the preceding month during which
	14461	+	22 the transaction occurred. The distributor, importing
	14462	+	23 distributor, or manufacturer shall notify the retailer as to
	14463	+	24 the method by which the distributor, importing distributor, or
	14464	+	25 manufacturer will provide the sales information. If the
	14465	+	26 retailer is unable to receive the sales information by
	14466	+
	14467	+
	14468	+
	14469	+
	14470	+
	14471	+	SB1963 Enrolled - 403 - LRB103 25648 HLH 51997 b
	14472	+
	14473	+
	14474	+	SB1963 Enrolled- 404 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 404 - LRB103 25648 HLH 51997 b
	14475	+	SB1963 Enrolled - 404 - LRB103 25648 HLH 51997 b
	14476	+	1 electronic means, the distributor, importing distributor, or
	14477	+	2 manufacturer shall furnish the sales information by personal
	14478	+	3 delivery or by mail. For purposes of this paragraph, the term
	14479	+	4 "electronic means" includes, but is not limited to, the use of
	14480	+	5 a secure Internet website, e-mail, or facsimile.
	14481	+	6 If a total amount of less than $1 is payable, refundable or
	14482	+	7 creditable, such amount shall be disregarded if it is less
	14483	+	8 than 50 cents and shall be increased to $1 if it is 50 cents or
	14484	+	9 more.
	14485	+	10 Notwithstanding any other provision of this Act to the
	14486	+	11 contrary, retailers subject to tax on cannabis shall file all
	14487	+	12 cannabis tax returns and shall make all cannabis tax payments
	14488	+	13 by electronic means in the manner and form required by the
	14489	+	14 Department.
	14490	+	15 Beginning October 1, 1993, a taxpayer who has an average
	14491	+	16 monthly tax liability of $150,000 or more shall make all
	14492	+	17 payments required by rules of the Department by electronic
	14493	+	18 funds transfer. Beginning October 1, 1994, a taxpayer who has
	14494	+	19 an average monthly tax liability of $100,000 or more shall
	14495	+	20 make all payments required by rules of the Department by
	14496	+	21 electronic funds transfer. Beginning October 1, 1995, a
	14497	+	22 taxpayer who has an average monthly tax liability of $50,000
	14498	+	23 or more shall make all payments required by rules of the
	14499	+	24 Department by electronic funds transfer. Beginning October 1,
	14500	+	25 2000, a taxpayer who has an annual tax liability of $200,000 or
	14501	+	26 more shall make all payments required by rules of the
	14502	+
	14503	+
	14504	+
	14505	+
	14506	+
	14507	+	SB1963 Enrolled - 404 - LRB103 25648 HLH 51997 b
	14508	+
	14509	+
	14510	+	SB1963 Enrolled- 405 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 405 - LRB103 25648 HLH 51997 b
	14511	+	SB1963 Enrolled - 405 - LRB103 25648 HLH 51997 b
	14512	+	1 Department by electronic funds transfer. The term "annual tax
	14513	+	2 liability" shall be the sum of the taxpayer's liabilities
	14514	+	3 under this Act, and under all other State and local occupation
	14515	+	4 and use tax laws administered by the Department, for the
	14516	+	5 immediately preceding calendar year. The term "average monthly
	14517	+	6 tax liability" shall be the sum of the taxpayer's liabilities
	14518	+	7 under this Act, and under all other State and local occupation
	14519	+	8 and use tax laws administered by the Department, for the
	14520	+	9 immediately preceding calendar year divided by 12. Beginning
	14521	+	10 on October 1, 2002, a taxpayer who has a tax liability in the
	14522	+	11 amount set forth in subsection (b) of Section 2505-210 of the
	14523	+	12 Department of Revenue Law shall make all payments required by
	14524	+	13 rules of the Department by electronic funds transfer.
	14525	+	14 Before August 1 of each year beginning in 1993, the
	14526	+	15 Department shall notify all taxpayers required to make
	14527	+	16 payments by electronic funds transfer. All taxpayers required
	14528	+	17 to make payments by electronic funds transfer shall make those
	14529	+	18 payments for a minimum of one year beginning on October 1.
	14530	+	19 Any taxpayer not required to make payments by electronic
	14531	+	20 funds transfer may make payments by electronic funds transfer
	14532	+	21 with the permission of the Department.
	14533	+	22 All taxpayers required to make payment by electronic funds
	14534	+	23 transfer and any taxpayers authorized to voluntarily make
	14535	+	24 payments by electronic funds transfer shall make those
	14536	+	25 payments in the manner authorized by the Department.
	14537	+	26 The Department shall adopt such rules as are necessary to
	14538	+
	14539	+
	14540	+
	14541	+
	14542	+
	14543	+	SB1963 Enrolled - 405 - LRB103 25648 HLH 51997 b
	14544	+
	14545	+
	14546	+	SB1963 Enrolled- 406 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 406 - LRB103 25648 HLH 51997 b
	14547	+	SB1963 Enrolled - 406 - LRB103 25648 HLH 51997 b
	14548	+	1 effectuate a program of electronic funds transfer and the
	14549	+	2 requirements of this Section.
	14550	+	3 Any amount which is required to be shown or reported on any
	14551	+	4 return or other document under this Act shall, if such amount
	14552	+	5 is not a whole-dollar amount, be increased to the nearest
	14553	+	6 whole-dollar amount in any case where the fractional part of a
	14554	+	7 dollar is 50 cents or more, and decreased to the nearest
	14555	+	8 whole-dollar amount where the fractional part of a dollar is
	14556	+	9 less than 50 cents.
	14557	+	10 If the retailer is otherwise required to file a monthly
	14558	+	11 return and if the retailer's average monthly tax liability to
	14559	+	12 the Department does not exceed $200, the Department may
	14560	+	13 authorize his returns to be filed on a quarter annual basis,
	14561	+	14 with the return for January, February and March of a given year
	14562	+	15 being due by April 20 of such year; with the return for April,
	14563	+	16 May and June of a given year being due by July 20 of such year;
	14564	+	17 with the return for July, August and September of a given year
	14565	+	18 being due by October 20 of such year, and with the return for
	14566	+	19 October, November and December of a given year being due by
	14567	+	20 January 20 of the following year.
	14568	+	21 If the retailer is otherwise required to file a monthly or
	14569	+	22 quarterly return and if the retailer's average monthly tax
	14570	+	23 liability with the Department does not exceed $50, the
	14571	+	24 Department may authorize his returns to be filed on an annual
	14572	+	25 basis, with the return for a given year being due by January 20
	14573	+	26 of the following year.
	14574	+
	14575	+
	14576	+
	14577	+
	14578	+
	14579	+	SB1963 Enrolled - 406 - LRB103 25648 HLH 51997 b
	14580	+
	14581	+
	14582	+	SB1963 Enrolled- 407 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 407 - LRB103 25648 HLH 51997 b
	14583	+	SB1963 Enrolled - 407 - LRB103 25648 HLH 51997 b
	14584	+	1 Such quarter annual and annual returns, as to form and
	14585	+	2 substance, shall be subject to the same requirements as
	14586	+	3 monthly returns.
	14587	+	4 Notwithstanding any other provision in this Act concerning
	14588	+	5 the time within which a retailer may file his return, in the
	14589	+	6 case of any retailer who ceases to engage in a kind of business
	14590	+	7 which makes him responsible for filing returns under this Act,
	14591	+	8 such retailer shall file a final return under this Act with the
	14592	+	9 Department not more than one month after discontinuing such
	14593	+	10 business.
	14594	+	11 Where the same person has more than one business
	14595	+	12 registered with the Department under separate registrations
	14596	+	13 under this Act, such person may not file each return that is
	14597	+	14 due as a single return covering all such registered
	14598	+	15 businesses, but shall file separate returns for each such
	14599	+	16 registered business.
	14600	+	17 In addition, with respect to motor vehicles, watercraft,
	14601	+	18 aircraft, and trailers that are required to be registered with
	14602	+	19 an agency of this State, except as otherwise provided in this
	14603	+	20 Section, every retailer selling this kind of tangible personal
	14604	+	21 property shall file, with the Department, upon a form to be
	14605	+	22 prescribed and supplied by the Department, a separate return
	14606	+	23 for each such item of tangible personal property which the
	14607	+	24 retailer sells, except that if, in the same transaction, (i) a
	14608	+	25 retailer of aircraft, watercraft, motor vehicles or trailers
	14609	+	26 transfers more than one aircraft, watercraft, motor vehicle or
	14610	+
	14611	+
	14612	+
	14613	+
	14614	+
	14615	+	SB1963 Enrolled - 407 - LRB103 25648 HLH 51997 b
	14616	+
	14617	+
	14618	+	SB1963 Enrolled- 408 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 408 - LRB103 25648 HLH 51997 b
	14619	+	SB1963 Enrolled - 408 - LRB103 25648 HLH 51997 b
	14620	+	1 trailer to another aircraft, watercraft, motor vehicle
	14621	+	2 retailer or trailer retailer for the purpose of resale or (ii)
	14622	+	3 a retailer of aircraft, watercraft, motor vehicles, or
	14623	+	4 trailers transfers more than one aircraft, watercraft, motor
	14624	+	5 vehicle, or trailer to a purchaser for use as a qualifying
	14625	+	6 rolling stock as provided in Section 2-5 of this Act, then that
	14626	+	7 seller may report the transfer of all aircraft, watercraft,
	14627	+	8 motor vehicles or trailers involved in that transaction to the
	14628	+	9 Department on the same uniform invoice-transaction reporting
	14629	+	10 return form. For purposes of this Section, "watercraft" means
	14630	+	11 a Class 2, Class 3, or Class 4 watercraft as defined in Section
	14631	+	12 3-2 of the Boat Registration and Safety Act, a personal
	14632	+	13 watercraft, or any boat equipped with an inboard motor.
	14633	+	14 In addition, with respect to motor vehicles, watercraft,
	14634	+	15 aircraft, and trailers that are required to be registered with
	14635	+	16 an agency of this State, every person who is engaged in the
	14636	+	17 business of leasing or renting such items and who, in
	14637	+	18 connection with such business, sells any such item to a
	14638	+	19 retailer for the purpose of resale is, notwithstanding any
	14639	+	20 other provision of this Section to the contrary, authorized to
	14640	+	21 meet the return-filing requirement of this Act by reporting
	14641	+	22 the transfer of all the aircraft, watercraft, motor vehicles,
	14642	+	23 or trailers transferred for resale during a month to the
	14643	+	24 Department on the same uniform invoice-transaction reporting
	14644	+	25 return form on or before the 20th of the month following the
	14645	+	26 month in which the transfer takes place. Notwithstanding any
	14646	+
	14647	+
	14648	+
	14649	+
	14650	+
	14651	+	SB1963 Enrolled - 408 - LRB103 25648 HLH 51997 b
	14652	+
	14653	+
	14654	+	SB1963 Enrolled- 409 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 409 - LRB103 25648 HLH 51997 b
	14655	+	SB1963 Enrolled - 409 - LRB103 25648 HLH 51997 b
	14656	+	1 other provision of this Act to the contrary, all returns filed
	14657	+	2 under this paragraph must be filed by electronic means in the
	14658	+	3 manner and form as required by the Department.
	14659	+	4 Any retailer who sells only motor vehicles, watercraft,
	14660	+	5 aircraft, or trailers that are required to be registered with
	14661	+	6 an agency of this State, so that all retailers' occupation tax
	14662	+	7 liability is required to be reported, and is reported, on such
	14663	+	8 transaction reporting returns and who is not otherwise
	14664	+	9 required to file monthly or quarterly returns, need not file
	14665	+	10 monthly or quarterly returns. However, those retailers shall
	14666	+	11 be required to file returns on an annual basis.
	14667	+	12 The transaction reporting return, in the case of motor
	14668	+	13 vehicles or trailers that are required to be registered with
	14669	+	14 an agency of this State, shall be the same document as the
	14670	+	15 Uniform Invoice referred to in Section 5-402 of the Illinois
	14671	+	16 Vehicle Code and must show the name and address of the seller;
	14672	+	17 the name and address of the purchaser; the amount of the
	14673	+	18 selling price including the amount allowed by the retailer for
	14674	+	19 traded-in property, if any; the amount allowed by the retailer
	14675	+	20 for the traded-in tangible personal property, if any, to the
	14676	+	21 extent to which Section 1 of this Act allows an exemption for
	14677	+	22 the value of traded-in property; the balance payable after
	14678	+	23 deducting such trade-in allowance from the total selling
	14679	+	24 price; the amount of tax due from the retailer with respect to
	14680	+	25 such transaction; the amount of tax collected from the
	14681	+	26 purchaser by the retailer on such transaction (or satisfactory
	14682	+
	14683	+
	14684	+
	14685	+
	14686	+
	14687	+	SB1963 Enrolled - 409 - LRB103 25648 HLH 51997 b
	14688	+
	14689	+
	14690	+	SB1963 Enrolled- 410 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 410 - LRB103 25648 HLH 51997 b
	14691	+	SB1963 Enrolled - 410 - LRB103 25648 HLH 51997 b
	14692	+	1 evidence that such tax is not due in that particular instance,
	14693	+	2 if that is claimed to be the fact); the place and date of the
	14694	+	3 sale; a sufficient identification of the property sold; such
	14695	+	4 other information as is required in Section 5-402 of the
	14696	+	5 Illinois Vehicle Code, and such other information as the
	14697	+	6 Department may reasonably require.
	14698	+	7 The transaction reporting return in the case of watercraft
	14699	+	8 or aircraft must show the name and address of the seller; the
	14700	+	9 name and address of the purchaser; the amount of the selling
	14701	+	10 price including the amount allowed by the retailer for
	14702	+	11 traded-in property, if any; the amount allowed by the retailer
	14703	+	12 for the traded-in tangible personal property, if any, to the
	14704	+	13 extent to which Section 1 of this Act allows an exemption for
	14705	+	14 the value of traded-in property; the balance payable after
	14706	+	15 deducting such trade-in allowance from the total selling
	14707	+	16 price; the amount of tax due from the retailer with respect to
	14708	+	17 such transaction; the amount of tax collected from the
	14709	+	18 purchaser by the retailer on such transaction (or satisfactory
	14710	+	19 evidence that such tax is not due in that particular instance,
	14711	+	20 if that is claimed to be the fact); the place and date of the
	14712	+	21 sale, a sufficient identification of the property sold, and
	14713	+	22 such other information as the Department may reasonably
	14714	+	23 require.
	14715	+	24 Such transaction reporting return shall be filed not later
	14716	+	25 than 20 days after the day of delivery of the item that is
	14717	+	26 being sold, but may be filed by the retailer at any time sooner
	14718	+
	14719	+
	14720	+
	14721	+
	14722	+
	14723	+	SB1963 Enrolled - 410 - LRB103 25648 HLH 51997 b
	14724	+
	14725	+
	14726	+	SB1963 Enrolled- 411 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 411 - LRB103 25648 HLH 51997 b
	14727	+	SB1963 Enrolled - 411 - LRB103 25648 HLH 51997 b
	14728	+	1 than that if he chooses to do so. The transaction reporting
	14729	+	2 return and tax remittance or proof of exemption from the
	14730	+	3 Illinois use tax may be transmitted to the Department by way of
	14731	+	4 the State agency with which, or State officer with whom the
	14732	+	5 tangible personal property must be titled or registered (if
	14733	+	6 titling or registration is required) if the Department and
	14734	+	7 such agency or State officer determine that this procedure
	14735	+	8 will expedite the processing of applications for title or
	14736	+	9 registration.
	14737	+	10 With each such transaction reporting return, the retailer
	14738	+	11 shall remit the proper amount of tax due (or shall submit
	14739	+	12 satisfactory evidence that the sale is not taxable if that is
	14740	+	13 the case), to the Department or its agents, whereupon the
	14741	+	14 Department shall issue, in the purchaser's name, a use tax
	14742	+	15 receipt (or a certificate of exemption if the Department is
	14743	+	16 satisfied that the particular sale is tax exempt) which such
	14744	+	17 purchaser may submit to the agency with which, or State
	14745	+	18 officer with whom, he must title or register the tangible
	14746	+	19 personal property that is involved (if titling or registration
	14747	+	20 is required) in support of such purchaser's application for an
	14748	+	21 Illinois certificate or other evidence of title or
	14749	+	22 registration to such tangible personal property.
	14750	+	23 No retailer's failure or refusal to remit tax under this
	14751	+	24 Act precludes a user, who has paid the proper tax to the
	14752	+	25 retailer, from obtaining his certificate of title or other
	14753	+	26 evidence of title or registration (if titling or registration
	14754	+
	14755	+
	14756	+
	14757	+
	14758	+
	14759	+	SB1963 Enrolled - 411 - LRB103 25648 HLH 51997 b
	14760	+
	14761	+
	14762	+	SB1963 Enrolled- 412 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 412 - LRB103 25648 HLH 51997 b
	14763	+	SB1963 Enrolled - 412 - LRB103 25648 HLH 51997 b
	14764	+	1 is required) upon satisfying the Department that such user has
	14765	+	2 paid the proper tax (if tax is due) to the retailer. The
	14766	+	3 Department shall adopt appropriate rules to carry out the
	14767	+	4 mandate of this paragraph.
	14768	+	5 If the user who would otherwise pay tax to the retailer
	14769	+	6 wants the transaction reporting return filed and the payment
	14770	+	7 of the tax or proof of exemption made to the Department before
	14771	+	8 the retailer is willing to take these actions and such user has
	14772	+	9 not paid the tax to the retailer, such user may certify to the
	14773	+	10 fact of such delay by the retailer and may (upon the Department
	14774	+	11 being satisfied of the truth of such certification) transmit
	14775	+	12 the information required by the transaction reporting return
	14776	+	13 and the remittance for tax or proof of exemption directly to
	14777	+	14 the Department and obtain his tax receipt or exemption
	14778	+	15 determination, in which event the transaction reporting return
	14779	+	16 and tax remittance (if a tax payment was required) shall be
	14780	+	17 credited by the Department to the proper retailer's account
	14781	+	18 with the Department, but without the 2.1% or 1.75% discount
	14782	+	19 provided for in this Section being allowed. When the user pays
	14783	+	20 the tax directly to the Department, he shall pay the tax in the
	14784	+	21 same amount and in the same form in which it would be remitted
	14785	+	22 if the tax had been remitted to the Department by the retailer.
	14786	+	23 Refunds made by the seller during the preceding return
	14787	+	24 period to purchasers, on account of tangible personal property
	14788	+	25 returned to the seller, shall be allowed as a deduction under
	14789	+	26 subdivision 5 of his monthly or quarterly return, as the case
	14790	+
	14791	+
	14792	+
	14793	+
	14794	+
	14795	+	SB1963 Enrolled - 412 - LRB103 25648 HLH 51997 b
	14796	+
	14797	+
	14798	+	SB1963 Enrolled- 413 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 413 - LRB103 25648 HLH 51997 b
	14799	+	SB1963 Enrolled - 413 - LRB103 25648 HLH 51997 b
	14800	+	1 may be, in case the seller had theretofore included the
	14801	+	2 receipts from the sale of such tangible personal property in a
	14802	+	3 return filed by him and had paid the tax imposed by this Act
	14803	+	4 with respect to such receipts.
	14804	+	5 Where the seller is a corporation, the return filed on
	14805	+	6 behalf of such corporation shall be signed by the president,
	14806	+	7 vice-president, secretary or treasurer or by the properly
	14807	+	8 accredited agent of such corporation.
	14808	+	9 Where the seller is a limited liability company, the
	14809	+	10 return filed on behalf of the limited liability company shall
	14810	+	11 be signed by a manager, member, or properly accredited agent
	14811	+	12 of the limited liability company.
	14812	+	13 Except as provided in this Section, the retailer filing
	14813	+	14 the return under this Section shall, at the time of filing such
	14814	+	15 return, pay to the Department the amount of tax imposed by this
	14815	+	16 Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
	14816	+	17 on and after January 1, 1990, or $5 per calendar year,
	14817	+	18 whichever is greater, which is allowed to reimburse the
	14818	+	19 retailer for the expenses incurred in keeping records,
	14819	+	20 preparing and filing returns, remitting the tax and supplying
	14820	+	21 data to the Department on request. On and after January 1,
	14821	+	22 2021, a certified service provider, as defined in the Leveling
	14822	+	23 the Playing Field for Illinois Retail Act, filing the return
	14823	+	24 under this Section on behalf of a remote retailer shall, at the
	14824	+	25 time of such return, pay to the Department the amount of tax
	14825	+	26 imposed by this Act less a discount of 1.75%. A remote retailer
	14826	+
	14827	+
	14828	+
	14829	+
	14830	+
	14831	+	SB1963 Enrolled - 413 - LRB103 25648 HLH 51997 b
	14832	+
	14833	+
	14834	+	SB1963 Enrolled- 414 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 414 - LRB103 25648 HLH 51997 b
	14835	+	SB1963 Enrolled - 414 - LRB103 25648 HLH 51997 b
	14836	+	1 using a certified service provider to file a return on its
	14837	+	2 behalf, as provided in the Leveling the Playing Field for
	14838	+	3 Illinois Retail Act, is not eligible for the discount. When
	14839	+	4 determining the discount allowed under this Section, retailers
	14840	+	5 shall include the amount of tax that would have been due at the
	14841	+	6 1% rate but for the 0% rate imposed under Public Act 102-700
	14842	+	7 this amendatory Act of the 102nd General Assembly. When
	14843	+	8 determining the discount allowed under this Section, retailers
	14844	+	9 shall include the amount of tax that would have been due at the
	14845	+	10 6.25% rate but for the 1.25% rate imposed on sales tax holiday
	14846	+	11 items under Public Act 102-700 this amendatory Act of the
	14847	+	12 102nd General Assembly. The discount under this Section is not
	14848	+	13 allowed for the 1.25% portion of taxes paid on aviation fuel
	14849	+	14 that is subject to the revenue use requirements of 49 U.S.C.
	14850	+	15 47107(b) and 49 U.S.C. 47133. Any prepayment made pursuant to
	14851	+	16 Section 2d of this Act shall be included in the amount on which
	14852	+	17 such 2.1% or 1.75% discount is computed. In the case of
	14853	+	18 retailers who report and pay the tax on a transaction by
	14854	+	19 transaction basis, as provided in this Section, such discount
	14855	+	20 shall be taken with each such tax remittance instead of when
	14856	+	21 such retailer files his periodic return. The discount allowed
	14857	+	22 under this Section is allowed only for returns that are filed
	14858	+	23 in the manner required by this Act. The Department may
	14859	+	24 disallow the discount for retailers whose certificate of
	14860	+	25 registration is revoked at the time the return is filed, but
	14861	+	26 only if the Department's decision to revoke the certificate of
	14862	+
	14863	+
	14864	+
	14865	+
	14866	+
	14867	+	SB1963 Enrolled - 414 - LRB103 25648 HLH 51997 b
	14868	+
	14869	+
	14870	+	SB1963 Enrolled- 415 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 415 - LRB103 25648 HLH 51997 b
	14871	+	SB1963 Enrolled - 415 - LRB103 25648 HLH 51997 b
	14872	+	1 registration has become final.
	14873	+	2 Before October 1, 2000, if the taxpayer's average monthly
	14874	+	3 tax liability to the Department under this Act, the Use Tax
	14875	+	4 Act, the Service Occupation Tax Act, and the Service Use Tax
	14876	+	5 Act, excluding any liability for prepaid sales tax to be
	14877	+	6 remitted in accordance with Section 2d of this Act, was
	14878	+	7 $10,000 or more during the preceding 4 complete calendar
	14879	+	8 quarters, he shall file a return with the Department each
	14880	+	9 month by the 20th day of the month next following the month
	14881	+	10 during which such tax liability is incurred and shall make
	14882	+	11 payments to the Department on or before the 7th, 15th, 22nd and
	14883	+	12 last day of the month during which such liability is incurred.
	14884	+	13 On and after October 1, 2000, if the taxpayer's average
	14885	+	14 monthly tax liability to the Department under this Act, the
	14886	+	15 Use Tax Act, the Service Occupation Tax Act, and the Service
	14887	+	16 Use Tax Act, excluding any liability for prepaid sales tax to
	14888	+	17 be remitted in accordance with Section 2d of this Act, was
	14889	+	18 $20,000 or more during the preceding 4 complete calendar
	14890	+	19 quarters, he shall file a return with the Department each
	14891	+	20 month by the 20th day of the month next following the month
	14892	+	21 during which such tax liability is incurred and shall make
	14893	+	22 payment to the Department on or before the 7th, 15th, 22nd and
	14894	+	23 last day of the month during which such liability is incurred.
	14895	+	24 If the month during which such tax liability is incurred began
	14896	+	25 prior to January 1, 1985, each payment shall be in an amount
	14897	+	26 equal to 1/4 of the taxpayer's actual liability for the month
	14898	+
	14899	+
	14900	+
	14901	+
	14902	+
	14903	+	SB1963 Enrolled - 415 - LRB103 25648 HLH 51997 b
	14904	+
	14905	+
	14906	+	SB1963 Enrolled- 416 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 416 - LRB103 25648 HLH 51997 b
	14907	+	SB1963 Enrolled - 416 - LRB103 25648 HLH 51997 b
	14908	+	1 or an amount set by the Department not to exceed 1/4 of the
	14909	+	2 average monthly liability of the taxpayer to the Department
	14910	+	3 for the preceding 4 complete calendar quarters (excluding the
	14911	+	4 month of highest liability and the month of lowest liability
	14912	+	5 in such 4 quarter period). If the month during which such tax
	14913	+	6 liability is incurred begins on or after January 1, 1985 and
	14914	+	7 prior to January 1, 1987, each payment shall be in an amount
	14915	+	8 equal to 22.5% of the taxpayer's actual liability for the
	14916	+	9 month or 27.5% of the taxpayer's liability for the same
	14917	+	10 calendar month of the preceding year. If the month during
	14918	+	11 which such tax liability is incurred begins on or after
	14919	+	12 January 1, 1987 and prior to January 1, 1988, each payment
	14920	+	13 shall be in an amount equal to 22.5% of the taxpayer's actual
	14921	+	14 liability for the month or 26.25% of the taxpayer's liability
	14922	+	15 for the same calendar month of the preceding year. If the month
	14923	+	16 during which such tax liability is incurred begins on or after
	14924	+	17 January 1, 1988, and prior to January 1, 1989, or begins on or
	14925	+	18 after January 1, 1996, each payment shall be in an amount equal
	14926	+	19 to 22.5% of the taxpayer's actual liability for the month or
	14927	+	20 25% of the taxpayer's liability for the same calendar month of
	14928	+	21 the preceding year. If the month during which such tax
	14929	+	22 liability is incurred begins on or after January 1, 1989, and
	14930	+	23 prior to January 1, 1996, each payment shall be in an amount
	14931	+	24 equal to 22.5% of the taxpayer's actual liability for the
	14932	+	25 month or 25% of the taxpayer's liability for the same calendar
	14933	+	26 month of the preceding year or 100% of the taxpayer's actual
	14934	+
	14935	+
	14936	+
	14937	+
	14938	+
	14939	+	SB1963 Enrolled - 416 - LRB103 25648 HLH 51997 b
	14940	+
	14941	+
	14942	+	SB1963 Enrolled- 417 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 417 - LRB103 25648 HLH 51997 b
	14943	+	SB1963 Enrolled - 417 - LRB103 25648 HLH 51997 b
	14944	+	1 liability for the quarter monthly reporting period. The amount
	14945	+	2 of such quarter monthly payments shall be credited against the
	14946	+	3 final tax liability of the taxpayer's return for that month.
	14947	+	4 Before October 1, 2000, once applicable, the requirement of
	14948	+	5 the making of quarter monthly payments to the Department by
	14949	+	6 taxpayers having an average monthly tax liability of $10,000
	14950	+	7 or more as determined in the manner provided above shall
	14951	+	8 continue until such taxpayer's average monthly liability to
	14952	+	9 the Department during the preceding 4 complete calendar
	14953	+	10 quarters (excluding the month of highest liability and the
	14954	+	11 month of lowest liability) is less than $9,000, or until such
	14955	+	12 taxpayer's average monthly liability to the Department as
	14956	+	13 computed for each calendar quarter of the 4 preceding complete
	14957	+	14 calendar quarter period is less than $10,000. However, if a
	14958	+	15 taxpayer can show the Department that a substantial change in
	14959	+	16 the taxpayer's business has occurred which causes the taxpayer
	14960	+	17 to anticipate that his average monthly tax liability for the
	14961	+	18 reasonably foreseeable future will fall below the $10,000
	14962	+	19 threshold stated above, then such taxpayer may petition the
	14963	+	20 Department for a change in such taxpayer's reporting status.
	14964	+	21 On and after October 1, 2000, once applicable, the requirement
	14965	+	22 of the making of quarter monthly payments to the Department by
	14966	+	23 taxpayers having an average monthly tax liability of $20,000
	14967	+	24 or more as determined in the manner provided above shall
	14968	+	25 continue until such taxpayer's average monthly liability to
	14969	+	26 the Department during the preceding 4 complete calendar
	14970	+
	14971	+
	14972	+
	14973	+
	14974	+
	14975	+	SB1963 Enrolled - 417 - LRB103 25648 HLH 51997 b
	14976	+
	14977	+
	14978	+	SB1963 Enrolled- 418 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 418 - LRB103 25648 HLH 51997 b
	14979	+	SB1963 Enrolled - 418 - LRB103 25648 HLH 51997 b
	14980	+	1 quarters (excluding the month of highest liability and the
	14981	+	2 month of lowest liability) is less than $19,000 or until such
	14982	+	3 taxpayer's average monthly liability to the Department as
	14983	+	4 computed for each calendar quarter of the 4 preceding complete
	14984	+	5 calendar quarter period is less than $20,000. However, if a
	14985	+	6 taxpayer can show the Department that a substantial change in
	14986	+	7 the taxpayer's business has occurred which causes the taxpayer
	14987	+	8 to anticipate that his average monthly tax liability for the
	14988	+	9 reasonably foreseeable future will fall below the $20,000
	14989	+	10 threshold stated above, then such taxpayer may petition the
	14990	+	11 Department for a change in such taxpayer's reporting status.
	14991	+	12 The Department shall change such taxpayer's reporting status
	14992	+	13 unless it finds that such change is seasonal in nature and not
	14993	+	14 likely to be long term. Quarter monthly payment status shall
	14994	+	15 be determined under this paragraph as if the rate reduction to
	14995	+	16 0% in Public Act 102-700 this amendatory Act of the 102nd
	14996	+	17 General Assembly on food for human consumption that is to be
	14997	+	18 consumed off the premises where it is sold (other than
	14998	+	19 alcoholic beverages, food consisting of or infused with adult
	14999	+	20 use cannabis, soft drinks, and food that has been prepared for
	15000	+	21 immediate consumption) had not occurred. For quarter monthly
	15001	+	22 payments due under this paragraph on or after July 1, 2023 and
	15002	+	23 through June 30, 2024, "25% of the taxpayer's liability for
	15003	+	24 the same calendar month of the preceding year" shall be
	15004	+	25 determined as if the rate reduction to 0% in Public Act 102-700
	15005	+	26 this amendatory Act of the 102nd General Assembly had not
	15006	+
	15007	+
	15008	+
	15009	+
	15010	+
	15011	+	SB1963 Enrolled - 418 - LRB103 25648 HLH 51997 b
	15012	+
	15013	+
	15014	+	SB1963 Enrolled- 419 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 419 - LRB103 25648 HLH 51997 b
	15015	+	SB1963 Enrolled - 419 - LRB103 25648 HLH 51997 b
	15016	+	1 occurred. Quarter monthly payment status shall be determined
	15017	+	2 under this paragraph as if the rate reduction to 1.25% in
	15018	+	3 Public Act 102-700 this amendatory Act of the 102nd General
	15019	+	4 Assembly on sales tax holiday items had not occurred. For
	15020	+	5 quarter monthly payments due on or after July 1, 2023 and
	15021	+	6 through June 30, 2024, "25% of the taxpayer's liability for
	15022	+	7 the same calendar month of the preceding year" shall be
	15023	+	8 determined as if the rate reduction to 1.25% in Public Act
	15024	+	9 102-700 this amendatory Act of the 102nd General Assembly on
	15025	+	10 sales tax holiday items had not occurred. If any such quarter
	15026	+	11 monthly payment is not paid at the time or in the amount
	15027	+	12 required by this Section, then the taxpayer shall be liable
	15028	+	13 for penalties and interest on the difference between the
	15029	+	14 minimum amount due as a payment and the amount of such quarter
	15030	+	15 monthly payment actually and timely paid, except insofar as
	15031	+	16 the taxpayer has previously made payments for that month to
	15032	+	17 the Department in excess of the minimum payments previously
	15033	+	18 due as provided in this Section. The Department shall make
	15034	+	19 reasonable rules and regulations to govern the quarter monthly
	15035	+	20 payment amount and quarter monthly payment dates for taxpayers
	15036	+	21 who file on other than a calendar monthly basis.
	15037	+	22 The provisions of this paragraph apply before October 1,
	15038	+	23 2001. Without regard to whether a taxpayer is required to make
	15039	+	24 quarter monthly payments as specified above, any taxpayer who
	15040	+	25 is required by Section 2d of this Act to collect and remit
	15041	+	26 prepaid taxes and has collected prepaid taxes which average in
	15042	+
	15043	+
	15044	+
	15045	+
	15046	+
	15047	+	SB1963 Enrolled - 419 - LRB103 25648 HLH 51997 b
	15048	+
	15049	+
	15050	+	SB1963 Enrolled- 420 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 420 - LRB103 25648 HLH 51997 b
	15051	+	SB1963 Enrolled - 420 - LRB103 25648 HLH 51997 b
	15052	+	1 excess of $25,000 per month during the preceding 2 complete
	15053	+	2 calendar quarters, shall file a return with the Department as
	15054	+	3 required by Section 2f and shall make payments to the
	15055	+	4 Department on or before the 7th, 15th, 22nd and last day of the
	15056	+	5 month during which such liability is incurred. If the month
	15057	+	6 during which such tax liability is incurred began prior to
	15058	+	7 September 1, 1985 (the effective date of Public Act 84-221),
	15059	+	8 each payment shall be in an amount not less than 22.5% of the
	15060	+	9 taxpayer's actual liability under Section 2d. If the month
	15061	+	10 during which such tax liability is incurred begins on or after
	15062	+	11 January 1, 1986, each payment shall be in an amount equal to
	15063	+	12 22.5% of the taxpayer's actual liability for the month or
	15064	+	13 27.5% of the taxpayer's liability for the same calendar month
	15065	+	14 of the preceding calendar year. If the month during which such
	15066	+	15 tax liability is incurred begins on or after January 1, 1987,
	15067	+	16 each payment shall be in an amount equal to 22.5% of the
	15068	+	17 taxpayer's actual liability for the month or 26.25% of the
	15069	+	18 taxpayer's liability for the same calendar month of the
	15070	+	19 preceding year. The amount of such quarter monthly payments
	15071	+	20 shall be credited against the final tax liability of the
	15072	+	21 taxpayer's return for that month filed under this Section or
	15073	+	22 Section 2f, as the case may be. Once applicable, the
	15074	+	23 requirement of the making of quarter monthly payments to the
	15075	+	24 Department pursuant to this paragraph shall continue until
	15076	+	25 such taxpayer's average monthly prepaid tax collections during
	15077	+	26 the preceding 2 complete calendar quarters is $25,000 or less.
	15078	+
	15079	+
	15080	+
	15081	+
	15082	+
	15083	+	SB1963 Enrolled - 420 - LRB103 25648 HLH 51997 b
	15084	+
	15085	+
	15086	+	SB1963 Enrolled- 421 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 421 - LRB103 25648 HLH 51997 b
	15087	+	SB1963 Enrolled - 421 - LRB103 25648 HLH 51997 b
	15088	+	1 If any such quarter monthly payment is not paid at the time or
	15089	+	2 in the amount required, the taxpayer shall be liable for
	15090	+	3 penalties and interest on such difference, except insofar as
	15091	+	4 the taxpayer has previously made payments for that month in
	15092	+	5 excess of the minimum payments previously due.
	15093	+	6 The provisions of this paragraph apply on and after
	15094	+	7 October 1, 2001. Without regard to whether a taxpayer is
	15095	+	8 required to make quarter monthly payments as specified above,
	15096	+	9 any taxpayer who is required by Section 2d of this Act to
	15097	+	10 collect and remit prepaid taxes and has collected prepaid
	15098	+	11 taxes that average in excess of $20,000 per month during the
	15099	+	12 preceding 4 complete calendar quarters shall file a return
	15100	+	13 with the Department as required by Section 2f and shall make
	15101	+	14 payments to the Department on or before the 7th, 15th, 22nd and
	15102	+	15 last day of the month during which the liability is incurred.
	15103	+	16 Each payment shall be in an amount equal to 22.5% of the
	15104	+	17 taxpayer's actual liability for the month or 25% of the
	15105	+	18 taxpayer's liability for the same calendar month of the
	15106	+	19 preceding year. The amount of the quarter monthly payments
	15107	+	20 shall be credited against the final tax liability of the
	15108	+	21 taxpayer's return for that month filed under this Section or
	15109	+	22 Section 2f, as the case may be. Once applicable, the
	15110	+	23 requirement of the making of quarter monthly payments to the
	15111	+	24 Department pursuant to this paragraph shall continue until the
	15112	+	25 taxpayer's average monthly prepaid tax collections during the
	15113	+	26 preceding 4 complete calendar quarters (excluding the month of
	15114	+
	15115	+
	15116	+
	15117	+
	15118	+
	15119	+	SB1963 Enrolled - 421 - LRB103 25648 HLH 51997 b
	15120	+
	15121	+
	15122	+	SB1963 Enrolled- 422 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 422 - LRB103 25648 HLH 51997 b
	15123	+	SB1963 Enrolled - 422 - LRB103 25648 HLH 51997 b
	15124	+	1 highest liability and the month of lowest liability) is less
	15125	+	2 than $19,000 or until such taxpayer's average monthly
	15126	+	3 liability to the Department as computed for each calendar
	15127	+	4 quarter of the 4 preceding complete calendar quarters is less
	15128	+	5 than $20,000. If any such quarter monthly payment is not paid
	15129	+	6 at the time or in the amount required, the taxpayer shall be
	15130	+	7 liable for penalties and interest on such difference, except
	15131	+	8 insofar as the taxpayer has previously made payments for that
	15132	+	9 month in excess of the minimum payments previously due.
	15133	+	10 If any payment provided for in this Section exceeds the
	15134	+	11 taxpayer's liabilities under this Act, the Use Tax Act, the
	15135	+	12 Service Occupation Tax Act and the Service Use Tax Act, as
	15136	+	13 shown on an original monthly return, the Department shall, if
	15137	+	14 requested by the taxpayer, issue to the taxpayer a credit
	15138	+	15 memorandum no later than 30 days after the date of payment. The
	15139	+	16 credit evidenced by such credit memorandum may be assigned by
	15140	+	17 the taxpayer to a similar taxpayer under this Act, the Use Tax
	15141	+	18 Act, the Service Occupation Tax Act or the Service Use Tax Act,
	15142	+	19 in accordance with reasonable rules and regulations to be
	15143	+	20 prescribed by the Department. If no such request is made, the
	15144	+	21 taxpayer may credit such excess payment against tax liability
	15145	+	22 subsequently to be remitted to the Department under this Act,
	15146	+	23 the Use Tax Act, the Service Occupation Tax Act or the Service
	15147	+	24 Use Tax Act, in accordance with reasonable rules and
	15148	+	25 regulations prescribed by the Department. If the Department
	15149	+	26 subsequently determined that all or any part of the credit
	15150	+
	15151	+
	15152	+
	15153	+
	15154	+
	15155	+	SB1963 Enrolled - 422 - LRB103 25648 HLH 51997 b
	15156	+
	15157	+
	15158	+	SB1963 Enrolled- 423 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 423 - LRB103 25648 HLH 51997 b
	15159	+	SB1963 Enrolled - 423 - LRB103 25648 HLH 51997 b
	15160	+	1 taken was not actually due to the taxpayer, the taxpayer's
	15161	+	2 2.1% and 1.75% vendor's discount shall be reduced by 2.1% or
	15162	+	3 1.75% of the difference between the credit taken and that
	15163	+	4 actually due, and that taxpayer shall be liable for penalties
	15164	+	5 and interest on such difference.
	15165	+	6 If a retailer of motor fuel is entitled to a credit under
	15166	+	7 Section 2d of this Act which exceeds the taxpayer's liability
	15167	+	8 to the Department under this Act for the month for which the
	15168	+	9 taxpayer is filing a return, the Department shall issue the
	15169	+	10 taxpayer a credit memorandum for the excess.
	15170	+	11 Beginning January 1, 1990, each month the Department shall
	15171	+	12 pay into the Local Government Tax Fund, a special fund in the
	15172	+	13 State treasury which is hereby created, the net revenue
	15173	+	14 realized for the preceding month from the 1% tax imposed under
	15174	+	15 this Act.
	15175	+	16 Beginning January 1, 1990, each month the Department shall
	15176	+	17 pay into the County and Mass Transit District Fund, a special
	15177	+	18 fund in the State treasury which is hereby created, 4% of the
	15178	+	19 net revenue realized for the preceding month from the 6.25%
	15179	+	20 general rate other than aviation fuel sold on or after
	15180	+	21 December 1, 2019. This exception for aviation fuel only
	15181	+	22 applies for so long as the revenue use requirements of 49
	15182	+	23 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
	15183	+	24 Beginning August 1, 2000, each month the Department shall
	15184	+	25 pay into the County and Mass Transit District Fund 20% of the
	15185	+	26 net revenue realized for the preceding month from the 1.25%
	15186	+
	15187	+
	15188	+
	15189	+
	15190	+
	15191	+	SB1963 Enrolled - 423 - LRB103 25648 HLH 51997 b
	15192	+
	15193	+
	15194	+	SB1963 Enrolled- 424 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 424 - LRB103 25648 HLH 51997 b
	15195	+	SB1963 Enrolled - 424 - LRB103 25648 HLH 51997 b
	15196	+	1 rate on the selling price of motor fuel and gasohol. If, in any
	15197	+	2 month, the tax on sales tax holiday items, as defined in
	15198	+	3 Section 2-8, is imposed at the rate of 1.25%, then the
	15199	+	4 Department shall pay 20% of the net revenue realized for that
	15200	+	5 month from the 1.25% rate on the selling price of sales tax
	15201	+	6 holiday items into the County and Mass Transit District Fund.
	15202	+	7 Beginning January 1, 1990, each month the Department shall
	15203	+	8 pay into the Local Government Tax Fund 16% of the net revenue
	15204	+	9 realized for the preceding month from the 6.25% general rate
	15205	+	10 on the selling price of tangible personal property other than
	15206	+	11 aviation fuel sold on or after December 1, 2019. This
	15207	+	12 exception for aviation fuel only applies for so long as the
	15208	+	13 revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
	15209	+	14 47133 are binding on the State.
	15210	+	15 For aviation fuel sold on or after December 1, 2019, each
	15211	+	16 month the Department shall pay into the State Aviation Program
	15212	+	17 Fund 20% of the net revenue realized for the preceding month
	15213	+	18 from the 6.25% general rate on the selling price of aviation
	15214	+	19 fuel, less an amount estimated by the Department to be
	15215	+	20 required for refunds of the 20% portion of the tax on aviation
	15216	+	21 fuel under this Act, which amount shall be deposited into the
	15217	+	22 Aviation Fuel Sales Tax Refund Fund. The Department shall only
	15218	+	23 pay moneys into the State Aviation Program Fund and the
	15219	+	24 Aviation Fuel Sales Tax Refund Fund under this Act for so long
	15220	+	25 as the revenue use requirements of 49 U.S.C. 47107(b) and 49
	15221	+	26 U.S.C. 47133 are binding on the State.
	15222	+
	15223	+
	15224	+
	15225	+
	15226	+
	15227	+	SB1963 Enrolled - 424 - LRB103 25648 HLH 51997 b
	15228	+
	15229	+
	15230	+	SB1963 Enrolled- 425 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 425 - LRB103 25648 HLH 51997 b
	15231	+	SB1963 Enrolled - 425 - LRB103 25648 HLH 51997 b
	15232	+	1 Beginning August 1, 2000, each month the Department shall
	15233	+	2 pay into the Local Government Tax Fund 80% of the net revenue
	15234	+	3 realized for the preceding month from the 1.25% rate on the
	15235	+	4 selling price of motor fuel and gasohol. If, in any month, the
	15236	+	5 tax on sales tax holiday items, as defined in Section 2-8, is
	15237	+	6 imposed at the rate of 1.25%, then the Department shall pay 80%
	15238	+	7 of the net revenue realized for that month from the 1.25% rate
	15239	+	8 on the selling price of sales tax holiday items into the Local
	15240	+	9 Government Tax Fund.
	15241	+	10 Beginning October 1, 2009, each month the Department shall
	15242	+	11 pay into the Capital Projects Fund an amount that is equal to
	15243	+	12 an amount estimated by the Department to represent 80% of the
	15244	+	13 net revenue realized for the preceding month from the sale of
	15245	+	14 candy, grooming and hygiene products, and soft drinks that had
	15246	+	15 been taxed at a rate of 1% prior to September 1, 2009 but that
	15247	+	16 are now taxed at 6.25%.
	15248	+	17 Beginning July 1, 2011, each month the Department shall
	15249	+	18 pay into the Clean Air Act Permit Fund 80% of the net revenue
	15250	+	19 realized for the preceding month from the 6.25% general rate
	15251	+	20 on the selling price of sorbents used in Illinois in the
	15252	+	21 process of sorbent injection as used to comply with the
	15253	+	22 Environmental Protection Act or the federal Clean Air Act, but
	15254	+	23 the total payment into the Clean Air Act Permit Fund under this
	15255	+	24 Act and the Use Tax Act shall not exceed $2,000,000 in any
	15256	+	25 fiscal year.
	15257	+	26 Beginning July 1, 2013, each month the Department shall
	15258	+
	15259	+
	15260	+
	15261	+
	15262	+
	15263	+	SB1963 Enrolled - 425 - LRB103 25648 HLH 51997 b
	15264	+
	15265	+
	15266	+	SB1963 Enrolled- 426 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 426 - LRB103 25648 HLH 51997 b
	15267	+	SB1963 Enrolled - 426 - LRB103 25648 HLH 51997 b
	15268	+	1 pay into the Underground Storage Tank Fund from the proceeds
	15269	+	2 collected under this Act, the Use Tax Act, the Service Use Tax
	15270	+	3 Act, and the Service Occupation Tax Act an amount equal to the
	15271	+	4 average monthly deficit in the Underground Storage Tank Fund
	15272	+	5 during the prior year, as certified annually by the Illinois
	15273	+	6 Environmental Protection Agency, but the total payment into
	15274	+	7 the Underground Storage Tank Fund under this Act, the Use Tax
	15275	+	8 Act, the Service Use Tax Act, and the Service Occupation Tax
	15276	+	9 Act shall not exceed $18,000,000 in any State fiscal year. As
	15277	+	10 used in this paragraph, the "average monthly deficit" shall be
	15278	+	11 equal to the difference between the average monthly claims for
	15279	+	12 payment by the fund and the average monthly revenues deposited
	15280	+	13 into the fund, excluding payments made pursuant to this
	15281	+	14 paragraph.
	15282	+	15 Beginning July 1, 2015, of the remainder of the moneys
	15283	+	16 received by the Department under the Use Tax Act, the Service
	15284	+	17 Use Tax Act, the Service Occupation Tax Act, and this Act, each
	15285	+	18 month the Department shall deposit $500,000 into the State
	15286	+	19 Crime Laboratory Fund.
	15287	+	20 Of the remainder of the moneys received by the Department
	15288	+	21 pursuant to this Act, (a) 1.75% thereof shall be paid into the
	15289	+	22 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
	15290	+	23 and after July 1, 1989, 3.8% thereof shall be paid into the
	15291	+	24 Build Illinois Fund; provided, however, that if in any fiscal
	15292	+	25 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
	15293	+	26 may be, of the moneys received by the Department and required
	15294	+
	15295	+
	15296	+
	15297	+
	15298	+
	15299	+	SB1963 Enrolled - 426 - LRB103 25648 HLH 51997 b
	15300	+
	15301	+
	15302	+	SB1963 Enrolled- 427 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 427 - LRB103 25648 HLH 51997 b
	15303	+	SB1963 Enrolled - 427 - LRB103 25648 HLH 51997 b
	15304	+	1 to be paid into the Build Illinois Fund pursuant to this Act,
	15305	+	2 Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
	15306	+	3 Act, and Section 9 of the Service Occupation Tax Act, such Acts
	15307	+	4 being hereinafter called the "Tax Acts" and such aggregate of
	15308	+	5 2.2% or 3.8%, as the case may be, of moneys being hereinafter
	15309	+	6 called the "Tax Act Amount", and (2) the amount transferred to
	15310	+	7 the Build Illinois Fund from the State and Local Sales Tax
	15311	+	8 Reform Fund shall be less than the Annual Specified Amount (as
	15312	+	9 hereinafter defined), an amount equal to the difference shall
	15313	+	10 be immediately paid into the Build Illinois Fund from other
	15314	+	11 moneys received by the Department pursuant to the Tax Acts;
	15315	+	12 the "Annual Specified Amount" means the amounts specified
	15316	+	13 below for fiscal years 1986 through 1993:
	15317	+	14Fiscal YearAnnual Specified Amount151986$54,800,000161987$76,650,000171988$80,480,000181989$88,510,000191990$115,330,000201991$145,470,000211992$182,730,000221993$206,520,000; 14 Fiscal Year Annual Specified Amount 15 1986 $54,800,000 16 1987 $76,650,000 17 1988 $80,480,000 18 1989 $88,510,000 19 1990 $115,330,000 20 1991 $145,470,000 21 1992 $182,730,000 22 1993 $206,520,000;
	15318	+	14 Fiscal Year Annual Specified Amount
	15319	+	15 1986 $54,800,000
	15320	+	16 1987 $76,650,000
	15321	+	17 1988 $80,480,000
	15322	+	18 1989 $88,510,000
	15323	+	19 1990 $115,330,000
	15324	+	20 1991 $145,470,000
	15325	+	21 1992 $182,730,000
	15326	+	22 1993 $206,520,000;
	15327	+	23 and means the Certified Annual Debt Service Requirement (as
	15328	+	24 defined in Section 13 of the Build Illinois Bond Act) or the
	15329	+	25 Tax Act Amount, whichever is greater, for fiscal year 1994 and
	15330	+	26 each fiscal year thereafter; and further provided, that if on
	15331	+
	15332	+
	15333	+
	15334	+
	15335	+
	15336	+	SB1963 Enrolled - 427 - LRB103 25648 HLH 51997 b
	15337	+
	15338	+
	15339	+	14 Fiscal Year Annual Specified Amount
	15340	+	15 1986 $54,800,000
	15341	+	16 1987 $76,650,000
	15342	+	17 1988 $80,480,000
	15343	+	18 1989 $88,510,000
	15344	+	19 1990 $115,330,000
	15345	+	20 1991 $145,470,000
	15346	+	21 1992 $182,730,000
	15347	+	22 1993 $206,520,000;
	15348	+
	15349	+
	15350	+	SB1963 Enrolled- 428 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 428 - LRB103 25648 HLH 51997 b
	15351	+	SB1963 Enrolled - 428 - LRB103 25648 HLH 51997 b
	15352	+	1 the last business day of any month the sum of (1) the Tax Act
	15353	+	2 Amount required to be deposited into the Build Illinois Bond
	15354	+	3 Account in the Build Illinois Fund during such month and (2)
	15355	+	4 the amount transferred to the Build Illinois Fund from the
	15356	+	5 State and Local Sales Tax Reform Fund shall have been less than
	15357	+	6 1/12 of the Annual Specified Amount, an amount equal to the
	15358	+	7 difference shall be immediately paid into the Build Illinois
	15359	+	8 Fund from other moneys received by the Department pursuant to
	15360	+	9 the Tax Acts; and, further provided, that in no event shall the
	15361	+	10 payments required under the preceding proviso result in
	15362	+	11 aggregate payments into the Build Illinois Fund pursuant to
	15363	+	12 this clause (b) for any fiscal year in excess of the greater of
	15364	+	13 (i) the Tax Act Amount or (ii) the Annual Specified Amount for
	15365	+	14 such fiscal year. The amounts payable into the Build Illinois
	15366	+	15 Fund under clause (b) of the first sentence in this paragraph
	15367	+	16 shall be payable only until such time as the aggregate amount
	15368	+	17 on deposit under each trust indenture securing Bonds issued
	15369	+	18 and outstanding pursuant to the Build Illinois Bond Act is
	15370	+	19 sufficient, taking into account any future investment income,
	15371	+	20 to fully provide, in accordance with such indenture, for the
	15372	+	21 defeasance of or the payment of the principal of, premium, if
	15373	+	22 any, and interest on the Bonds secured by such indenture and on
	15374	+	23 any Bonds expected to be issued thereafter and all fees and
	15375	+	24 costs payable with respect thereto, all as certified by the
	15376	+	25 Director of the Bureau of the Budget (now Governor's Office of
	15377	+	26 Management and Budget). If on the last business day of any
	15378	+
	15379	+
	15380	+
	15381	+
	15382	+
	15383	+	SB1963 Enrolled - 428 - LRB103 25648 HLH 51997 b
	15384	+
	15385	+
	15386	+	SB1963 Enrolled- 429 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 429 - LRB103 25648 HLH 51997 b
	15387	+	SB1963 Enrolled - 429 - LRB103 25648 HLH 51997 b
	15388	+	1 month in which Bonds are outstanding pursuant to the Build
	15389	+	2 Illinois Bond Act, the aggregate of moneys deposited in the
	15390	+	3 Build Illinois Bond Account in the Build Illinois Fund in such
	15391	+	4 month shall be less than the amount required to be transferred
	15392	+	5 in such month from the Build Illinois Bond Account to the Build
	15393	+	6 Illinois Bond Retirement and Interest Fund pursuant to Section
	15394	+	7 13 of the Build Illinois Bond Act, an amount equal to such
	15395	+	8 deficiency shall be immediately paid from other moneys
	15396	+	9 received by the Department pursuant to the Tax Acts to the
	15397	+	10 Build Illinois Fund; provided, however, that any amounts paid
	15398	+	11 to the Build Illinois Fund in any fiscal year pursuant to this
	15399	+	12 sentence shall be deemed to constitute payments pursuant to
	15400	+	13 clause (b) of the first sentence of this paragraph and shall
	15401	+	14 reduce the amount otherwise payable for such fiscal year
	15402	+	15 pursuant to that clause (b). The moneys received by the
	15403	+	16 Department pursuant to this Act and required to be deposited
	15404	+	17 into the Build Illinois Fund are subject to the pledge, claim
	15405	+	18 and charge set forth in Section 12 of the Build Illinois Bond
	15406	+	19 Act.
	15407	+	20 Subject to payment of amounts into the Build Illinois Fund
	15408	+	21 as provided in the preceding paragraph or in any amendment
	15409	+	22 thereto hereafter enacted, the following specified monthly
	15410	+	23 installment of the amount requested in the certificate of the
	15411	+	24 Chairman of the Metropolitan Pier and Exposition Authority
	15412	+	25 provided under Section 8.25f of the State Finance Act, but not
	15413	+	26 in excess of sums designated as "Total Deposit", shall be
	15414	+
	15415	+
	15416	+
	15417	+
	15418	+
	15419	+	SB1963 Enrolled - 429 - LRB103 25648 HLH 51997 b
	15420	+
	15421	+
	15422	+	SB1963 Enrolled- 430 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 430 - LRB103 25648 HLH 51997 b
	15423	+	SB1963 Enrolled - 430 - LRB103 25648 HLH 51997 b
	15424	+	1 deposited in the aggregate from collections under Section 9 of
	15425	+	2 the Use Tax Act, Section 9 of the Service Use Tax Act, Section
	15426	+	3 9 of the Service Occupation Tax Act, and Section 3 of the
	15427	+	4 Retailers' Occupation Tax Act into the McCormick Place
	15428	+	5 Expansion Project Fund in the specified fiscal years.
	15429	+	6Fiscal YearTotal Deposit71993 $081994 53,000,00091995 58,000,000101996 61,000,000111997 64,000,000121998 68,000,000131999 71,000,000142000 75,000,000152001 80,000,000162002 93,000,000172003 99,000,000182004103,000,000192005108,000,000202006113,000,000212007119,000,000222008126,000,000232009132,000,000242010139,000,000252011146,000,000262012153,000,000 6 Fiscal Year Total Deposit 7 1993 $0 8 1994 53,000,000 9 1995 58,000,000 10 1996 61,000,000 11 1997 64,000,000 12 1998 68,000,000 13 1999 71,000,000 14 2000 75,000,000 15 2001 80,000,000 16 2002 93,000,000 17 2003 99,000,000 18 2004 103,000,000 19 2005 108,000,000 20 2006 113,000,000 21 2007 119,000,000 22 2008 126,000,000 23 2009 132,000,000 24 2010 139,000,000 25 2011 146,000,000 26 2012 153,000,000
	15430	+	6 Fiscal Year Total Deposit
	15431	+	7 1993 $0
	15432	+	8 1994 53,000,000
	15433	+	9 1995 58,000,000
	15434	+	10 1996 61,000,000
	15435	+	11 1997 64,000,000
	15436	+	12 1998 68,000,000
	15437	+	13 1999 71,000,000
	15438	+	14 2000 75,000,000
	15439	+	15 2001 80,000,000
	15440	+	16 2002 93,000,000
	15441	+	17 2003 99,000,000
	15442	+	18 2004 103,000,000
	15443	+	19 2005 108,000,000
	15444	+	20 2006 113,000,000
	15445	+	21 2007 119,000,000
	15446	+	22 2008 126,000,000
	15447	+	23 2009 132,000,000
	15448	+	24 2010 139,000,000
	15449	+	25 2011 146,000,000
	15450	+	26 2012 153,000,000
	15451	+
	15452	+
	15453	+
	15454	+
	15455	+
	15456	+	SB1963 Enrolled - 430 - LRB103 25648 HLH 51997 b
	15457	+
	15458	+
	15459	+	6 Fiscal Year Total Deposit
	15460	+	7 1993 $0
	15461	+	8 1994 53,000,000
	15462	+	9 1995 58,000,000
	15463	+	10 1996 61,000,000
	15464	+	11 1997 64,000,000
	15465	+	12 1998 68,000,000
	15466	+	13 1999 71,000,000
	15467	+	14 2000 75,000,000
	15468	+	15 2001 80,000,000
	15469	+	16 2002 93,000,000
	15470	+	17 2003 99,000,000
	15471	+	18 2004 103,000,000
	15472	+	19 2005 108,000,000
	15473	+	20 2006 113,000,000
	15474	+	21 2007 119,000,000
	15475	+	22 2008 126,000,000
	15476	+	23 2009 132,000,000
	15477	+	24 2010 139,000,000
	15478	+	25 2011 146,000,000
	15479	+	26 2012 153,000,000
	15480	+
	15481	+
	15482	+	SB1963 Enrolled- 431 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 431 - LRB103 25648 HLH 51997 b
	15483	+	SB1963 Enrolled - 431 - LRB103 25648 HLH 51997 b
	15484	+	12013161,000,00022014170,000,00032015179,000,00042016189,000,00052017199,000,00062018210,000,00072019221,000,00082020233,000,00092021300,000,000102022300,000,000112023300,000,000122024 300,000,000132025 300,000,000142026 300,000,000152027 375,000,000162028 375,000,000172029 375,000,000182030 375,000,000192031 375,000,000202032 375,000,000212033375,000,000222034375,000,000232035375,000,000242036450,000,00025and 26each fiscal year 1 2013 161,000,000 2 2014 170,000,000 3 2015 179,000,000 4 2016 189,000,000 5 2017 199,000,000 6 2018 210,000,000 7 2019 221,000,000 8 2020 233,000,000 9 2021 300,000,000 10 2022 300,000,000 11 2023 300,000,000 12 2024 300,000,000 13 2025 300,000,000 14 2026 300,000,000 15 2027 375,000,000 16 2028 375,000,000 17 2029 375,000,000 18 2030 375,000,000 19 2031 375,000,000 20 2032 375,000,000 21 2033 375,000,000 22 2034 375,000,000 23 2035 375,000,000 24 2036 450,000,000 25 and 26 each fiscal year
	15485	+	1 2013 161,000,000
	15486	+	2 2014 170,000,000
	15487	+	3 2015 179,000,000
	15488	+	4 2016 189,000,000
	15489	+	5 2017 199,000,000
	15490	+	6 2018 210,000,000
	15491	+	7 2019 221,000,000
	15492	+	8 2020 233,000,000
	15493	+	9 2021 300,000,000
	15494	+	10 2022 300,000,000
	15495	+	11 2023 300,000,000
	15496	+	12 2024 300,000,000
	15497	+	13 2025 300,000,000
	15498	+	14 2026 300,000,000
	15499	+	15 2027 375,000,000
	15500	+	16 2028 375,000,000
	15501	+	17 2029 375,000,000
	15502	+	18 2030 375,000,000
	15503	+	19 2031 375,000,000
	15504	+	20 2032 375,000,000
	15505	+	21 2033 375,000,000
	15506	+	22 2034 375,000,000
	15507	+	23 2035 375,000,000
	15508	+	24 2036 450,000,000
	15509	+	25 and
	15510	+	26 each fiscal year
	15511	+
	15512	+
	15513	+
	15514	+
	15515	+
	15516	+	SB1963 Enrolled - 431 - LRB103 25648 HLH 51997 b
	15517	+
	15518	+	1 2013 161,000,000
	15519	+	2 2014 170,000,000
	15520	+	3 2015 179,000,000
	15521	+	4 2016 189,000,000
	15522	+	5 2017 199,000,000
	15523	+	6 2018 210,000,000
	15524	+	7 2019 221,000,000
	15525	+	8 2020 233,000,000
	15526	+	9 2021 300,000,000
	15527	+	10 2022 300,000,000
	15528	+	11 2023 300,000,000
	15529	+	12 2024 300,000,000
	15530	+	13 2025 300,000,000
	15531	+	14 2026 300,000,000
	15532	+	15 2027 375,000,000
	15533	+	16 2028 375,000,000
	15534	+	17 2029 375,000,000
	15535	+	18 2030 375,000,000
	15536	+	19 2031 375,000,000
	15537	+	20 2032 375,000,000
	15538	+	21 2033 375,000,000
	15539	+	22 2034 375,000,000
	15540	+	23 2035 375,000,000
	15541	+	24 2036 450,000,000
	15542	+	25 and
	15543	+	26 each fiscal year
	15544	+
	15545	+
	15546	+	SB1963 Enrolled- 432 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 432 - LRB103 25648 HLH 51997 b
	15547	+	SB1963 Enrolled - 432 - LRB103 25648 HLH 51997 b
	15548	+	1thereafter that bonds 2are outstanding under 3Section 13.2 of the 4Metropolitan Pier and 5Exposition Authority Act, 6but not after fiscal year 2060. 1 thereafter that bonds 2 are outstanding under 3 Section 13.2 of the 4 Metropolitan Pier and 5 Exposition Authority Act, 6 but not after fiscal year 2060.
	15549	+	1 thereafter that bonds
	15550	+	2 are outstanding under
	15551	+	3 Section 13.2 of the
	15552	+	4 Metropolitan Pier and
	15553	+	5 Exposition Authority Act,
	15554	+	6 but not after fiscal year 2060.
	15555	+	7 Beginning July 20, 1993 and in each month of each fiscal
	15556	+	8 year thereafter, one-eighth of the amount requested in the
	15557	+	9 certificate of the Chairman of the Metropolitan Pier and
	15558	+	10 Exposition Authority for that fiscal year, less the amount
	15559	+	11 deposited into the McCormick Place Expansion Project Fund by
	15560	+	12 the State Treasurer in the respective month under subsection
	15561	+	13 (g) of Section 13 of the Metropolitan Pier and Exposition
	15562	+	14 Authority Act, plus cumulative deficiencies in the deposits
	15563	+	15 required under this Section for previous months and years,
	15564	+	16 shall be deposited into the McCormick Place Expansion Project
	15565	+	17 Fund, until the full amount requested for the fiscal year, but
	15566	+	18 not in excess of the amount specified above as "Total
	15567	+	19 Deposit", has been deposited.
	15568	+	20 Subject to payment of amounts into the Capital Projects
	15569	+	21 Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
	15570	+	22 and the McCormick Place Expansion Project Fund pursuant to the
	15571	+	23 preceding paragraphs or in any amendments thereto hereafter
	15572	+	24 enacted, for aviation fuel sold on or after December 1, 2019,
	15573	+	25 the Department shall each month deposit into the Aviation Fuel
	15574	+	26 Sales Tax Refund Fund an amount estimated by the Department to
	15575	+
	15576	+
	15577	+
	15578	+
	15579	+
	15580	+	SB1963 Enrolled - 432 - LRB103 25648 HLH 51997 b
	15581	+
	15582	+	1 thereafter that bonds
	15583	+	2 are outstanding under
	15584	+	3 Section 13.2 of the
	15585	+	4 Metropolitan Pier and
	15586	+	5 Exposition Authority Act,
	15587	+	6 but not after fiscal year 2060.
	15588	+
	15589	+
	15590	+	SB1963 Enrolled- 433 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 433 - LRB103 25648 HLH 51997 b
	15591	+	SB1963 Enrolled - 433 - LRB103 25648 HLH 51997 b
	15592	+	1 be required for refunds of the 80% portion of the tax on
	15593	+	2 aviation fuel under this Act. The Department shall only
	15594	+	3 deposit moneys into the Aviation Fuel Sales Tax Refund Fund
	15595	+	4 under this paragraph for so long as the revenue use
	15596	+	5 requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
	15597	+	6 binding on the State.
	15598	+	7 Subject to payment of amounts into the Build Illinois Fund
	15599	+	8 and the McCormick Place Expansion Project Fund pursuant to the
	15600	+	9 preceding paragraphs or in any amendments thereto hereafter
	15601	+	10 enacted, beginning July 1, 1993 and ending on September 30,
	15602	+	11 2013, the Department shall each month pay into the Illinois
	15603	+	12 Tax Increment Fund 0.27% of 80% of the net revenue realized for
	15604	+	13 the preceding month from the 6.25% general rate on the selling
	15605	+	14 price of tangible personal property.
	15606	+	15 Subject to payment of amounts into the Build Illinois Fund
	15607	+	16 and the McCormick Place Expansion Project Fund pursuant to the
	15608	+	17 preceding paragraphs or in any amendments thereto hereafter
	15609	+	18 enacted, beginning with the receipt of the first report of
	15610	+	19 taxes paid by an eligible business and continuing for a
	15611	+	20 25-year period, the Department shall each month pay into the
	15612	+	21 Energy Infrastructure Fund 80% of the net revenue realized
	15613	+	22 from the 6.25% general rate on the selling price of
	15614	+	23 Illinois-mined coal that was sold to an eligible business. For
	15615	+	24 purposes of this paragraph, the term "eligible business" means
	15616	+	25 a new electric generating facility certified pursuant to
	15617	+	26 Section 605-332 of the Department of Commerce and Economic
	15618	+
	15619	+
	15620	+
	15621	+
	15622	+
	15623	+	SB1963 Enrolled - 433 - LRB103 25648 HLH 51997 b
	15624	+
	15625	+
	15626	+	SB1963 Enrolled- 434 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 434 - LRB103 25648 HLH 51997 b
	15627	+	SB1963 Enrolled - 434 - LRB103 25648 HLH 51997 b
	15628	+	1 Opportunity Law of the Civil Administrative Code of Illinois.
	15629	+	2 Subject to payment of amounts into the Build Illinois
	15630	+	3 Fund, the McCormick Place Expansion Project Fund, the Illinois
	15631	+	4 Tax Increment Fund, and the Energy Infrastructure Fund
	15632	+	5 pursuant to the preceding paragraphs or in any amendments to
	15633	+	6 this Section hereafter enacted, beginning on the first day of
	15634	+	7 the first calendar month to occur on or after August 26, 2014
	15635	+	8 (the effective date of Public Act 98-1098), each month, from
	15636	+	9 the collections made under Section 9 of the Use Tax Act,
	15637	+	10 Section 9 of the Service Use Tax Act, Section 9 of the Service
	15638	+	11 Occupation Tax Act, and Section 3 of the Retailers' Occupation
	15639	+	12 Tax Act, the Department shall pay into the Tax Compliance and
	15640	+	13 Administration Fund, to be used, subject to appropriation, to
	15641	+	14 fund additional auditors and compliance personnel at the
	15642	+	15 Department of Revenue, an amount equal to 1/12 of 5% of 80% of
	15643	+	16 the cash receipts collected during the preceding fiscal year
	15644	+	17 by the Audit Bureau of the Department under the Use Tax Act,
	15645	+	18 the Service Use Tax Act, the Service Occupation Tax Act, the
	15646	+	19 Retailers' Occupation Tax Act, and associated local occupation
	15647	+	20 and use taxes administered by the Department.
	15648	+	21 Subject to payments of amounts into the Build Illinois
	15649	+	22 Fund, the McCormick Place Expansion Project Fund, the Illinois
	15650	+	23 Tax Increment Fund, the Energy Infrastructure Fund, and the
	15651	+	24 Tax Compliance and Administration Fund as provided in this
	15652	+	25 Section, beginning on July 1, 2018 the Department shall pay
	15653	+	26 each month into the Downstate Public Transportation Fund the
	15654	+
	15655	+
	15656	+
	15657	+
	15658	+
	15659	+	SB1963 Enrolled - 434 - LRB103 25648 HLH 51997 b
	15660	+
	15661	+
	15662	+	SB1963 Enrolled- 435 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 435 - LRB103 25648 HLH 51997 b
	15663	+	SB1963 Enrolled - 435 - LRB103 25648 HLH 51997 b
	15664	+	1 moneys required to be so paid under Section 2-3 of the
	15665	+	2 Downstate Public Transportation Act.
	15666	+	3 Subject to successful execution and delivery of a
	15667	+	4 public-private agreement between the public agency and private
	15668	+	5 entity and completion of the civic build, beginning on July 1,
	15669	+	6 2023, of the remainder of the moneys received by the
	15670	+	7 Department under the Use Tax Act, the Service Use Tax Act, the
	15671	+	8 Service Occupation Tax Act, and this Act, the Department shall
	15672	+	9 deposit the following specified deposits in the aggregate from
	15673	+	10 collections under the Use Tax Act, the Service Use Tax Act, the
	15674	+	11 Service Occupation Tax Act, and the Retailers' Occupation Tax
	15675	+	12 Act, as required under Section 8.25g of the State Finance Act
	15676	+	13 for distribution consistent with the Public-Private
	15677	+	14 Partnership for Civic and Transit Infrastructure Project Act.
	15678	+	15 The moneys received by the Department pursuant to this Act and
	15679	+	16 required to be deposited into the Civic and Transit
	15680	+	17 Infrastructure Fund are subject to the pledge, claim and
	15681	+	18 charge set forth in Section 25-55 of the Public-Private
	15682	+	19 Partnership for Civic and Transit Infrastructure Project Act.
	15683	+	20 As used in this paragraph, "civic build", "private entity",
	15684	+	21 "public-private agreement", and "public agency" have the
	15685	+	22 meanings provided in Section 25-10 of the Public-Private
	15686	+	23 Partnership for Civic and Transit Infrastructure Project Act.
	15687	+	24 Fiscal Year.............................Total Deposit
	15688	+	25 2024.....................................$200,000,000
	15689	+	26 2025....................................$206,000,000
	15690	+
	15691	+
	15692	+
	15693	+
	15694	+
	15695	+	SB1963 Enrolled - 435 - LRB103 25648 HLH 51997 b
	15696	+
	15697	+
	15698	+	SB1963 Enrolled- 436 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 436 - LRB103 25648 HLH 51997 b
	15699	+	SB1963 Enrolled - 436 - LRB103 25648 HLH 51997 b
	15700	+	1 2026....................................$212,200,000
	15701	+	2 2027....................................$218,500,000
	15702	+	3 2028....................................$225,100,000
	15703	+	4 2029....................................$288,700,000
	15704	+	5 2030....................................$298,900,000
	15705	+	6 2031....................................$309,300,000
	15706	+	7 2032....................................$320,100,000
	15707	+	8 2033....................................$331,200,000
	15708	+	9 2034....................................$341,200,000
	15709	+	10 2035....................................$351,400,000
	15710	+	11 2036....................................$361,900,000
	15711	+	12 2037....................................$372,800,000
	15712	+	13 2038....................................$384,000,000
	15713	+	14 2039....................................$395,500,000
	15714	+	15 2040....................................$407,400,000
	15715	+	16 2041....................................$419,600,000
	15716	+	17 2042....................................$432,200,000
	15717	+	18 2043....................................$445,100,000
	15718	+	19 Beginning July 1, 2021 and until July 1, 2022, subject to
	15719	+	20 the payment of amounts into the County and Mass Transit
	15720	+	21 District Fund, the Local Government Tax Fund, the Build
	15721	+	22 Illinois Fund, the McCormick Place Expansion Project Fund, the
	15722	+	23 Illinois Tax Increment Fund, the Energy Infrastructure Fund,
	15723	+	24 and the Tax Compliance and Administration Fund as provided in
	15724	+	25 this Section, the Department shall pay each month into the
	15725	+	26 Road Fund the amount estimated to represent 16% of the net
	15726	+
	15727	+
	15728	+
	15729	+
	15730	+
	15731	+	SB1963 Enrolled - 436 - LRB103 25648 HLH 51997 b
	15732	+
	15733	+
	15734	+	SB1963 Enrolled- 437 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 437 - LRB103 25648 HLH 51997 b
	15735	+	SB1963 Enrolled - 437 - LRB103 25648 HLH 51997 b
	15736	+	1 revenue realized from the taxes imposed on motor fuel and
	15737	+	2 gasohol. Beginning July 1, 2022 and until July 1, 2023,
	15738	+	3 subject to the payment of amounts into the County and Mass
	15739	+	4 Transit District Fund, the Local Government Tax Fund, the
	15740	+	5 Build Illinois Fund, the McCormick Place Expansion Project
	15741	+	6 Fund, the Illinois Tax Increment Fund, the Energy
	15742	+	7 Infrastructure Fund, and the Tax Compliance and Administration
	15743	+	8 Fund as provided in this Section, the Department shall pay
	15744	+	9 each month into the Road Fund the amount estimated to
	15745	+	10 represent 32% of the net revenue realized from the taxes
	15746	+	11 imposed on motor fuel and gasohol. Beginning July 1, 2023 and
	15747	+	12 until July 1, 2024, subject to the payment of amounts into the
	15748	+	13 County and Mass Transit District Fund, the Local Government
	15749	+	14 Tax Fund, the Build Illinois Fund, the McCormick Place
	15750	+	15 Expansion Project Fund, the Illinois Tax Increment Fund, the
	15751	+	16 Energy Infrastructure Fund, and the Tax Compliance and
	15752	+	17 Administration Fund as provided in this Section, the
	15753	+	18 Department shall pay each month into the Road Fund the amount
	15754	+	19 estimated to represent 48% of the net revenue realized from
	15755	+	20 the taxes imposed on motor fuel and gasohol. Beginning July 1,
	15756	+	21 2024 and until July 1, 2025, subject to the payment of amounts
	15757	+	22 into the County and Mass Transit District Fund, the Local
	15758	+	23 Government Tax Fund, the Build Illinois Fund, the McCormick
	15759	+	24 Place Expansion Project Fund, the Illinois Tax Increment Fund,
	15760	+	25 the Energy Infrastructure Fund, and the Tax Compliance and
	15761	+	26 Administration Fund as provided in this Section, the
	15762	+
	15763	+
	15764	+
	15765	+
	15766	+
	15767	+	SB1963 Enrolled - 437 - LRB103 25648 HLH 51997 b
	15768	+
	15769	+
	15770	+	SB1963 Enrolled- 438 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 438 - LRB103 25648 HLH 51997 b
	15771	+	SB1963 Enrolled - 438 - LRB103 25648 HLH 51997 b
	15772	+	1 Department shall pay each month into the Road Fund the amount
	15773	+	2 estimated to represent 64% of the net revenue realized from
	15774	+	3 the taxes imposed on motor fuel and gasohol. Beginning on July
	15775	+	4 1, 2025, subject to the payment of amounts into the County and
	15776	+	5 Mass Transit District Fund, the Local Government Tax Fund, the
	15777	+	6 Build Illinois Fund, the McCormick Place Expansion Project
	15778	+	7 Fund, the Illinois Tax Increment Fund, the Energy
	15779	+	8 Infrastructure Fund, and the Tax Compliance and Administration
	15780	+	9 Fund as provided in this Section, the Department shall pay
	15781	+	10 each month into the Road Fund the amount estimated to
	15782	+	11 represent 80% of the net revenue realized from the taxes
	15783	+	12 imposed on motor fuel and gasohol. As used in this paragraph
	15784	+	13 "motor fuel" has the meaning given to that term in Section 1.1
	15785	+	14 of the Motor Fuel Tax Law, and "gasohol" has the meaning given
	15786	+	15 to that term in Section 3-40 of the Use Tax Act.
	15787	+	16 Of the remainder of the moneys received by the Department
	15788	+	17 pursuant to this Act, 75% thereof shall be paid into the State
	15789	+	18 treasury Treasury and 25% shall be reserved in a special
	15790	+	19 account and used only for the transfer to the Common School
	15791	+	20 Fund as part of the monthly transfer from the General Revenue
	15792	+	21 Fund in accordance with Section 8a of the State Finance Act.
	15793	+	22 The Department may, upon separate written notice to a
	15794	+	23 taxpayer, require the taxpayer to prepare and file with the
	15795	+	24 Department on a form prescribed by the Department within not
	15796	+	25 less than 60 days after receipt of the notice an annual
	15797	+	26 information return for the tax year specified in the notice.
	15798	+
	15799	+
	15800	+
	15801	+
	15802	+
	15803	+	SB1963 Enrolled - 438 - LRB103 25648 HLH 51997 b
	15804	+
	15805	+
	15806	+	SB1963 Enrolled- 439 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 439 - LRB103 25648 HLH 51997 b
	15807	+	SB1963 Enrolled - 439 - LRB103 25648 HLH 51997 b
	15808	+	1 Such annual return to the Department shall include a statement
	15809	+	2 of gross receipts as shown by the retailer's last Federal
	15810	+	3 income tax return. If the total receipts of the business as
	15811	+	4 reported in the Federal income tax return do not agree with the
	15812	+	5 gross receipts reported to the Department of Revenue for the
	15813	+	6 same period, the retailer shall attach to his annual return a
	15814	+	7 schedule showing a reconciliation of the 2 amounts and the
	15815	+	8 reasons for the difference. The retailer's annual return to
	15816	+	9 the Department shall also disclose the cost of goods sold by
	15817	+	10 the retailer during the year covered by such return, opening
	15818	+	11 and closing inventories of such goods for such year, costs of
	15819	+	12 goods used from stock or taken from stock and given away by the
	15820	+	13 retailer during such year, payroll information of the
	15821	+	14 retailer's business during such year and any additional
	15822	+	15 reasonable information which the Department deems would be
	15823	+	16 helpful in determining the accuracy of the monthly, quarterly
	15824	+	17 or annual returns filed by such retailer as provided for in
	15825	+	18 this Section.
	15826	+	19 If the annual information return required by this Section
	15827	+	20 is not filed when and as required, the taxpayer shall be liable
	15828	+	21 as follows:
	15829	+	22 (i) Until January 1, 1994, the taxpayer shall be
	15830	+	23 liable for a penalty equal to 1/6 of 1% of the tax due from
	15831	+	24 such taxpayer under this Act during the period to be
	15832	+	25 covered by the annual return for each month or fraction of
	15833	+	26 a month until such return is filed as required, the
	15834	+
	15835	+
	15836	+
	15837	+
	15838	+
	15839	+	SB1963 Enrolled - 439 - LRB103 25648 HLH 51997 b
	15840	+
	15841	+
	15842	+	SB1963 Enrolled- 440 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 440 - LRB103 25648 HLH 51997 b
	15843	+	SB1963 Enrolled - 440 - LRB103 25648 HLH 51997 b
	15844	+	1 penalty to be assessed and collected in the same manner as
	15845	+	2 any other penalty provided for in this Act.
	15846	+	3 (ii) On and after January 1, 1994, the taxpayer shall
	15847	+	4 be liable for a penalty as described in Section 3-4 of the
	15848	+	5 Uniform Penalty and Interest Act.
	15849	+	6 The chief executive officer, proprietor, owner or highest
	15850	+	7 ranking manager shall sign the annual return to certify the
	15851	+	8 accuracy of the information contained therein. Any person who
	15852	+	9 willfully signs the annual return containing false or
	15853	+	10 inaccurate information shall be guilty of perjury and punished
	15854	+	11 accordingly. The annual return form prescribed by the
	15855	+	12 Department shall include a warning that the person signing the
	15856	+	13 return may be liable for perjury.
	15857	+	14 The provisions of this Section concerning the filing of an
	15858	+	15 annual information return do not apply to a retailer who is not
	15859	+	16 required to file an income tax return with the United States
	15860	+	17 Government.
	15861	+	18 As soon as possible after the first day of each month, upon
	15862	+	19 certification of the Department of Revenue, the Comptroller
	15863	+	20 shall order transferred and the Treasurer shall transfer from
	15864	+	21 the General Revenue Fund to the Motor Fuel Tax Fund an amount
	15865	+	22 equal to 1.7% of 80% of the net revenue realized under this Act
	15866	+	23 for the second preceding month. Beginning April 1, 2000, this
	15867	+	24 transfer is no longer required and shall not be made.
	15868	+	25 Net revenue realized for a month shall be the revenue
	15869	+	26 collected by the State pursuant to this Act, less the amount
	15870	+
	15871	+
	15872	+
	15873	+
	15874	+
	15875	+	SB1963 Enrolled - 440 - LRB103 25648 HLH 51997 b
	15876	+
	15877	+
	15878	+	SB1963 Enrolled- 441 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 441 - LRB103 25648 HLH 51997 b
	15879	+	SB1963 Enrolled - 441 - LRB103 25648 HLH 51997 b
	15880	+	1 paid out during that month as refunds to taxpayers for
	15881	+	2 overpayment of liability.
	15882	+	3 For greater simplicity of administration, manufacturers,
	15883	+	4 importers and wholesalers whose products are sold at retail in
	15884	+	5 Illinois by numerous retailers, and who wish to do so, may
	15885	+	6 assume the responsibility for accounting and paying to the
	15886	+	7 Department all tax accruing under this Act with respect to
	15887	+	8 such sales, if the retailers who are affected do not make
	15888	+	9 written objection to the Department to this arrangement.
	15889	+	10 Any person who promotes, organizes, provides retail
	15890	+	11 selling space for concessionaires or other types of sellers at
	15891	+	12 the Illinois State Fair, DuQuoin State Fair, county fairs,
	15892	+	13 local fairs, art shows, flea markets and similar exhibitions
	15893	+	14 or events, including any transient merchant as defined by
	15894	+	15 Section 2 of the Transient Merchant Act of 1987, is required to
	15895	+	16 file a report with the Department providing the name of the
	15896	+	17 merchant's business, the name of the person or persons engaged
	15897	+	18 in merchant's business, the permanent address and Illinois
	15898	+	19 Retailers Occupation Tax Registration Number of the merchant,
	15899	+	20 the dates and location of the event and other reasonable
	15900	+	21 information that the Department may require. The report must
	15901	+	22 be filed not later than the 20th day of the month next
	15902	+	23 following the month during which the event with retail sales
	15903	+	24 was held. Any person who fails to file a report required by
	15904	+	25 this Section commits a business offense and is subject to a
	15905	+	26 fine not to exceed $250.
	15906	+
	15907	+
	15908	+
	15909	+
	15910	+
	15911	+	SB1963 Enrolled - 441 - LRB103 25648 HLH 51997 b
	15912	+
	15913	+
	15914	+	SB1963 Enrolled- 442 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 442 - LRB103 25648 HLH 51997 b
	15915	+	SB1963 Enrolled - 442 - LRB103 25648 HLH 51997 b
	15916	+	1 Any person engaged in the business of selling tangible
	15917	+	2 personal property at retail as a concessionaire or other type
	15918	+	3 of seller at the Illinois State Fair, county fairs, art shows,
	15919	+	4 flea markets and similar exhibitions or events, or any
	15920	+	5 transient merchants, as defined by Section 2 of the Transient
	15921	+	6 Merchant Act of 1987, may be required to make a daily report of
	15922	+	7 the amount of such sales to the Department and to make a daily
	15923	+	8 payment of the full amount of tax due. The Department shall
	15924	+	9 impose this requirement when it finds that there is a
	15925	+	10 significant risk of loss of revenue to the State at such an
	15926	+	11 exhibition or event. Such a finding shall be based on evidence
	15927	+	12 that a substantial number of concessionaires or other sellers
	15928	+	13 who are not residents of Illinois will be engaging in the
	15929	+	14 business of selling tangible personal property at retail at
	15930	+	15 the exhibition or event, or other evidence of a significant
	15931	+	16 risk of loss of revenue to the State. The Department shall
	15932	+	17 notify concessionaires and other sellers affected by the
	15933	+	18 imposition of this requirement. In the absence of notification
	15934	+	19 by the Department, the concessionaires and other sellers shall
	15935	+	20 file their returns as otherwise required in this Section.
	15936	+	21 (Source: P.A. 101-10, Article 15, Section 15-25, eff. 6-5-19;
	15937	+	22 101-10, Article 25, Section 25-120, eff. 6-5-19; 101-27, eff.
	15938	+	23 6-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
	15939	+	24 101-636, eff. 6-10-20; 102-634, eff. 8-27-21; 102-700, Article
	15940	+	25 60, Section 60-30, eff. 4-19-22; 102-700, Article 65, Section
	15941	+	26 65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff.
	15942	+
	15943	+
	15944	+
	15945	+
	15946	+
	15947	+	SB1963 Enrolled - 442 - LRB103 25648 HLH 51997 b
	15948	+
	15949	+
	15950	+	SB1963 Enrolled- 443 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 443 - LRB103 25648 HLH 51997 b
	15951	+	SB1963 Enrolled - 443 - LRB103 25648 HLH 51997 b
	15952	+	1 1-1-23; revised 12-13-22.)
	15953	+	2 ARTICLE 75. REV ILLINOIS PROGRAM
	15954	+	3 Section 75-5. The Reimagining Energy and Vehicles in
	15955	+	4 Illinois Act is amended by changing Sections 20, 30, 40, and 45
	15956	+	5 as follows:
	15957	+	6 (20 ILCS 686/20)
	15958	+	7 Sec. 20. REV Illinois Program; project applications.
	15959	+	8 (a) The Reimagining Energy and Vehicles in Illinois (REV
	15960	+	9 Illinois) Program is hereby established and shall be
	15961	+	10 administered by the Department. The Program will provide
	15962	+	11 financial incentives to any one or more of the following: (1)
	15963	+	12 eligible manufacturers of electric vehicles, electric vehicle
	15964	+	13 component parts, and electric vehicle power supply equipment;
	15965	+	14 (2) battery recycling and reuse manufacturers; (3) battery raw
	15966	+	15 materials refining service providers; or (4) renewable energy
	15967	+	16 manufacturers.
	15968	+	17 (b) Any taxpayer planning a project to be located in
	15969	+	18 Illinois may request consideration for designation of its
	15970	+	19 project as a REV Illinois Project, by formal written letter of
	15971	+	20 request or by formal application to the Department, in which
	15972	+	21 the applicant states its intent to make at least a specified
	15973	+	22 level of investment and intends to hire a specified number of
	15974	+	23 full-time employees at a designated location in Illinois. As
	15975	+
	15976	+
	15977	+
	15978	+
	15979	+
	15980	+	SB1963 Enrolled - 443 - LRB103 25648 HLH 51997 b
	15981	+
	15982	+
	15983	+	SB1963 Enrolled- 444 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 444 - LRB103 25648 HLH 51997 b
	15984	+	SB1963 Enrolled - 444 - LRB103 25648 HLH 51997 b
	15985	+	1 circumstances require, the Department shall require a formal
	15986	+	2 application from an applicant and a formal letter of request
	15987	+	3 for assistance.
	15988	+	4 (c) In order to qualify for credits under the REV Illinois
	15989	+	5 Program, an applicant must:
	15990	+	6 (1) if the applicant is an electric vehicle
	15991	+	7 manufacturer:
	15992	+	8 (A) make an investment of at least $1,500,000,000
	15993	+	9 in capital improvements at the project site;
	15994	+	10 (B) to be placed in service within the State
	15995	+	11 within a 60-month period after approval of the
	15996	+	12 application; and
	15997	+	13 (C) create at least 500 new full-time employee
	15998	+	14 jobs; or
	15999	+	15 (2) if the applicant is an electric vehicle component
	16000	+	16 parts manufacturer or a renewable energy manufacturer:
	16001	+	17 (A) make an investment of at least $300,000,000 in
	16002	+	18 capital improvements at the project site;
	16003	+	19 (B) manufacture one or more parts that are
	16004	+	20 primarily used for electric vehicle manufacturing;
	16005	+	21 (C) to be placed in service within the State
	16006	+	22 within a 60-month period after approval of the
	16007	+	23 application; and
	16008	+	24 (D) create at least 150 new full-time employee
	16009	+	25 jobs; or
	16010	+	26 (3) if the agreement is entered into before the
	16011	+
	16012	+
	16013	+
	16014	+
	16015	+
	16016	+	SB1963 Enrolled - 444 - LRB103 25648 HLH 51997 b
	16017	+
	16018	+
	16019	+	SB1963 Enrolled- 445 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 445 - LRB103 25648 HLH 51997 b
	16020	+	SB1963 Enrolled - 445 - LRB103 25648 HLH 51997 b
	16021	+	1 effective date of this amendatory Act of the 102nd General
	16022	+	2 Assembly and the applicant is an electric vehicle
	16023	+	3 manufacturer, an electric vehicle power supply equipment
	16024	+	4 manufacturer, an electric vehicle component part
	16025	+	5 manufacturer that does not qualify under paragraph (2)
	16026	+	6 above, a battery recycling and reuse manufacturer, or a
	16027	+	7 battery raw materials refining service provider:
	16028	+	8 (A) make an investment of at least $20,000,000 in
	16029	+	9 capital improvements at the project site;
	16030	+	10 (B) for electric vehicle component part
	16031	+	11 manufacturers, manufacture one or more parts that are
	16032	+	12 primarily used for electric vehicle manufacturing;
	16033	+	13 (C) to be placed in service within the State
	16034	+	14 within a 48-month period after approval of the
	16035	+	15 application; and
	16036	+	16 (D) create at least 50 new full-time employee
	16037	+	17 jobs; or
	16038	+	18 (3.1) if the agreement is entered into on or after the
	16039	+	19 effective date of this amendatory Act of the 102nd General
	16040	+	20 Assembly and the applicant is an electric vehicle
	16041	+	21 manufacturer, an electric vehicle power supply equipment
	16042	+	22 manufacturer, an electric vehicle component part
	16043	+	23 manufacturer that does not qualify under paragraph (2)
	16044	+	24 above, a renewable energy manufacturer that does not
	16045	+	25 qualify under paragraph (2) above, a battery recycling and
	16046	+	26 reuse manufacturer, or a battery raw materials refining
	16047	+
	16048	+
	16049	+
	16050	+
	16051	+
	16052	+	SB1963 Enrolled - 445 - LRB103 25648 HLH 51997 b
	16053	+
	16054	+
	16055	+	SB1963 Enrolled- 446 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 446 - LRB103 25648 HLH 51997 b
	16056	+	SB1963 Enrolled - 446 - LRB103 25648 HLH 51997 b
	16057	+	1 service provider:
	16058	+	2 (A) make an investment of at least $2,500,000 in
	16059	+	3 capital improvements at the project site;
	16060	+	4 (B) in the case of electric vehicle component part
	16061	+	5 manufacturers, manufacture one or more parts that are
	16062	+	6 used for electric vehicle manufacturing;
	16063	+	7 (C) to be placed in service within the State
	16064	+	8 within a 48-month period after approval of the
	16065	+	9 application; and
	16066	+	10 (D) create the lesser of 50 new full-time employee
	16067	+	11 jobs or new full-time employee jobs equivalent to 10%
	16068	+	12 of the Statewide baseline applicable to the taxpayer
	16069	+	13 and any related member at the time of application; or
	16070	+	14 (4) if the agreement is entered into before the
	16071	+	15 effective date of this amendatory Act of the 102nd General
	16072	+	16 Assembly and the applicant is an electric vehicle
	16073	+	17 manufacturer or electric vehicle component parts
	16074	+	18 manufacturer with existing operations within Illinois that
	16075	+	19 intends to convert or expand, in whole or in part, the
	16076	+	20 existing facility from traditional manufacturing to
	16077	+	21 primarily electric vehicle manufacturing, electric vehicle
	16078	+	22 component parts manufacturing, or electric vehicle power
	16079	+	23 supply equipment manufacturing:
	16080	+	24 (A) make an investment of at least $100,000,000 in
	16081	+	25 capital improvements at the project site;
	16082	+	26 (B) to be placed in service within the State
	16083	+
	16084	+
	16085	+
	16086	+
	16087	+
	16088	+	SB1963 Enrolled - 446 - LRB103 25648 HLH 51997 b
	16089	+
	16090	+
	16091	+	SB1963 Enrolled- 447 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 447 - LRB103 25648 HLH 51997 b
	16092	+	SB1963 Enrolled - 447 - LRB103 25648 HLH 51997 b
	16093	+	1 within a 60-month period after approval of the
	16094	+	2 application; and
	16095	+	3 (C) create the lesser of 75 new full-time employee
	16096	+	4 jobs or new full-time employee jobs equivalent to 10%
	16097	+	5 of the Statewide baseline applicable to the taxpayer
	16098	+	6 and any related member at the time of application; or
	16099	+	7 (4.1) if the agreement is entered into on or after the
	16100	+	8 effective date of this amendatory Act of the 102nd General
	16101	+	9 Assembly and the applicant (i) is an electric vehicle
	16102	+	10 manufacturer, an electric vehicle component parts
	16103	+	11 manufacturer, or a renewable energy manufacturer and (ii)
	16104	+	12 has existing operations within Illinois that the applicant
	16105	+	13 intends to convert or expand, in whole or in part, from
	16106	+	14 traditional manufacturing to electric vehicle
	16107	+	15 manufacturing, electric vehicle component parts
	16108	+	16 manufacturing, renewable energy manufacturing, or electric
	16109	+	17 vehicle power supply equipment manufacturing:
	16110	+	18 (A) make an investment of at least $100,000,000 in
	16111	+	19 capital improvements at the project site;
	16112	+	20 (B) to be placed in service within the State
	16113	+	21 within a 60-month period after approval of the
	16114	+	22 application; and
	16115	+	23 (C) create the lesser of 50 new full-time employee
	16116	+	24 jobs or new full-time employee jobs equivalent to 10%
	16117	+	25 of the Statewide baseline applicable to the taxpayer
	16118	+	26 and any related member at the time of application; or .
	16119	+
	16120	+
	16121	+
	16122	+
	16123	+
	16124	+	SB1963 Enrolled - 447 - LRB103 25648 HLH 51997 b
	16125	+
	16126	+
	16127	+	SB1963 Enrolled- 448 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 448 - LRB103 25648 HLH 51997 b
	16128	+	SB1963 Enrolled - 448 - LRB103 25648 HLH 51997 b
	16129	+	1 (5) if the agreement is entered into on or after the
	16130	+	2 effective date of the changes made to this Section by this
	16131	+	3 amendatory Act of the 103rd General Assembly and before
	16132	+	4 June 1, 2024 and the applicant (i) is an electric vehicle
	16133	+	5 manufacturer, an electric vehicle component parts
	16134	+	6 manufacturer, or a renewable energy manufacturer or (ii)
	16135	+	7 has existing operations within Illinois that the applicant
	16136	+	8 intends to convert or expand, in whole or in part, from
	16137	+	9 traditional manufacturing to electric vehicle
	16138	+	10 manufacturing, electric vehicle component parts
	16139	+	11 manufacturing, renewable energy manufacturing, or electric
	16140	+	12 vehicle power supply equipment manufacturing:
	16141	+	13 (A) make an investment of at least $500,000,000 in
	16142	+	14 capital improvements at the project site;
	16143	+	15 (B) to be placed in service within the State
	16144	+	16 within a 60-month period after approval of the
	16145	+	17 application; and
	16146	+	18 (C) retain at least 800 full-time employee jobs at
	16147	+	19 the project.
	16148	+	20 (d) For agreements entered into prior to April 19, 2022
	16149	+	21 (the effective date of Public Act 102-700), for any applicant
	16150	+	22 creating the full-time employee jobs noted in subsection (c),
	16151	+	23 those jobs must have a total compensation equal to or greater
	16152	+	24 than 120% of the average wage paid to full-time employees in
	16153	+	25 the county where the project is located, as determined by the
	16154	+	26 U.S. Bureau of Labor Statistics. For agreements entered into
	16155	+
	16156	+
	16157	+
	16158	+
	16159	+
	16160	+	SB1963 Enrolled - 448 - LRB103 25648 HLH 51997 b
	16161	+
	16162	+
	16163	+	SB1963 Enrolled- 449 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 449 - LRB103 25648 HLH 51997 b
	16164	+	SB1963 Enrolled - 449 - LRB103 25648 HLH 51997 b
	16165	+	1 on or after April 19, 2022 (the effective date of Public Act
	16166	+	2 102-700), for any applicant creating the full-time employee
	16167	+	3 jobs noted in subsection (c), those jobs must have a
	16168	+	4 compensation equal to or greater than 120% of the average wage
	16169	+	5 paid to full-time employees in a similar position within an
	16170	+	6 occupational group in the county where the project is located,
	16171	+	7 as determined by the Department.
	16172	+	8 (e) For any applicant, within 24 months after being placed
	16173	+	9 in service, it must certify to the Department that it is carbon
	16174	+	10 neutral or has attained certification under one of more of the
	16175	+	11 following green building standards:
	16176	+	12 (1) BREEAM for New Construction or BREEAM In-Use;
	16177	+	13 (2) ENERGY STAR;
	16178	+	14 (3) Envision;
	16179	+	15 (4) ISO 50001 - energy management;
	16180	+	16 (5) LEED for Building Design and Construction or LEED
	16181	+	17 for Building Operations and Maintenance;
	16182	+	18 (6) Green Globes for New Construction or Green Globes
	16183	+	19 for Existing Buildings; or
	16184	+	20 (7) UL 3223.
	16185	+	21 (f) Each applicant must outline its hiring plan and
	16186	+	22 commitment to recruit and hire full-time employee positions at
	16187	+	23 the project site. The hiring plan may include a partnership
	16188	+	24 with an institution of higher education to provide
	16189	+	25 internships, including, but not limited to, internships
	16190	+	26 supported by the Clean Jobs Workforce Network Program, or
	16191	+
	16192	+
	16193	+
	16194	+
	16195	+
	16196	+	SB1963 Enrolled - 449 - LRB103 25648 HLH 51997 b
	16197	+
	16198	+
	16199	+	SB1963 Enrolled- 450 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 450 - LRB103 25648 HLH 51997 b
	16200	+	SB1963 Enrolled - 450 - LRB103 25648 HLH 51997 b
	16201	+	1 full-time permanent employment for students at the project
	16202	+	2 site. Additionally, the applicant may create or utilize
	16203	+	3 participants from apprenticeship programs that are approved by
	16204	+	4 and registered with the United States Department of Labor's
	16205	+	5 Bureau of Apprenticeship and Training. The applicant may apply
	16206	+	6 for apprenticeship education expense credits in accordance
	16207	+	7 with the provisions set forth in 14 Ill. Adm. Code 522. Each
	16208	+	8 applicant is required to report annually, on or before April
	16209	+	9 15, on the diversity of its workforce in accordance with
	16210	+	10 Section 50 of this Act. For existing facilities of applicants
	16211	+	11 under paragraph (3) of subsection (b) above, if the taxpayer
	16212	+	12 expects a reduction in force due to its transition to
	16213	+	13 manufacturing electric vehicle, electric vehicle component
	16214	+	14 parts, or electric vehicle power supply equipment, the plan
	16215	+	15 submitted under this Section must outline the taxpayer's plan
	16216	+	16 to assist with retraining its workforce aligned with the
	16217	+	17 taxpayer's adoption of new technologies and anticipated
	16218	+	18 efforts to retrain employees through employment opportunities
	16219	+	19 within the taxpayer's workforce.
	16220	+	20 (g) Each applicant must demonstrate a contractual or other
	16221	+	21 relationship with a recycling facility, or demonstrate its own
	16222	+	22 recycling capabilities, at the time of application and report
	16223	+	23 annually a continuing contractual or other relationship with a
	16224	+	24 recycling facility and the percentage of batteries used in
	16225	+	25 electric vehicles recycled throughout the term of the
	16226	+	26 agreement.
	16227	+
	16228	+
	16229	+
	16230	+
	16231	+
	16232	+	SB1963 Enrolled - 450 - LRB103 25648 HLH 51997 b
	16233	+
	16234	+
	16235	+	SB1963 Enrolled- 451 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 451 - LRB103 25648 HLH 51997 b
	16236	+	SB1963 Enrolled - 451 - LRB103 25648 HLH 51997 b
	16237	+	1 (h) A taxpayer may not enter into more than one agreement
	16238	+	2 under this Act with respect to a single address or location for
	16239	+	3 the same period of time. Also, a taxpayer may not enter into an
	16240	+	4 agreement under this Act with respect to a single address or
	16241	+	5 location for the same period of time for which the taxpayer
	16242	+	6 currently holds an active agreement under the Economic
	16243	+	7 Development for a Growing Economy Tax Credit Act. This
	16244	+	8 provision does not preclude the applicant from entering into
	16245	+	9 an additional agreement after the expiration or voluntary
	16246	+	10 termination of an earlier agreement under this Act or under
	16247	+	11 the Economic Development for a Growing Economy Tax Credit Act
	16248	+	12 to the extent that the taxpayer's application otherwise
	16249	+	13 satisfies the terms and conditions of this Act and is approved
	16250	+	14 by the Department. An applicant with an existing agreement
	16251	+	15 under the Economic Development for a Growing Economy Tax
	16252	+	16 Credit Act may submit an application for an agreement under
	16253	+	17 this Act after it terminates any existing agreement under the
	16254	+	18 Economic Development for a Growing Economy Tax Credit Act with
	16255	+	19 respect to the same address or location. If a project that is
	16256	+	20 subject to an existing agreement under the Economic
	16257	+	21 Development for a Growing Economy Tax Credit Act meets the
	16258	+	22 requirements to be designated as a REV Illinois project under
	16259	+	23 this Act, including for actions undertaken prior to the
	16260	+	24 effective date of this Act, the taxpayer that is subject to
	16261	+	25 that existing agreement under the Economic Development for a
	16262	+	26 Growing Economy Tax Credit Act may apply to the Department to
	16263	+
	16264	+
	16265	+
	16266	+
	16267	+
	16268	+	SB1963 Enrolled - 451 - LRB103 25648 HLH 51997 b
	16269	+
	16270	+
	16271	+	SB1963 Enrolled- 452 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 452 - LRB103 25648 HLH 51997 b
	16272	+	SB1963 Enrolled - 452 - LRB103 25648 HLH 51997 b
	16273	+	1 amend the agreement to allow the project to become a
	16274	+	2 designated REV Illinois project. Following the amendment, time
	16275	+	3 accrued during which the project was eligible for credits
	16276	+	4 under the existing agreement under the Economic Development
	16277	+	5 for a Growing Economy Tax Credit Act shall count toward the
	16278	+	6 duration of the credit subject to limitations described in
	16279	+	7 Section 40 of this Act.
	16280	+	8 (i) If, at any time following the designation of a project
	16281	+	9 as a REV Illinois Project by the Department and prior to the
	16282	+	10 termination or expiration of an agreement under this Act, the
	16283	+	11 project ceases to qualify as a REV Illinois project because
	16284	+	12 the taxpayer is no longer an electric vehicle manufacturer, an
	16285	+	13 electric vehicle component manufacturer, an electric vehicle
	16286	+	14 power supply equipment manufacturer, a battery recycling and
	16287	+	15 reuse manufacturer, or a battery raw materials refining
	16288	+	16 service provider, that project may receive tax credit awards
	16289	+	17 as described in Section 5-15 and Section 5-51 of the Economic
	16290	+	18 Development for a Growing Economy Tax Credit Act, as long as
	16291	+	19 the project continues to meet requirements to obtain those
	16292	+	20 credits as described in the Economic Development for a Growing
	16293	+	21 Economy Tax Credit Act and remains compliant with terms
	16294	+	22 contained in the Agreement under this Act not related to their
	16295	+	23 status as an electric vehicle manufacturer, an electric
	16296	+	24 vehicle component manufacturer, an electric vehicle power
	16297	+	25 supply equipment manufacturer, a battery recycling and reuse
	16298	+	26 manufacturer, or a battery raw materials refining service
	16299	+
	16300	+
	16301	+
	16302	+
	16303	+
	16304	+	SB1963 Enrolled - 452 - LRB103 25648 HLH 51997 b
	16305	+
	16306	+
	16307	+	SB1963 Enrolled- 453 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 453 - LRB103 25648 HLH 51997 b
	16308	+	SB1963 Enrolled - 453 - LRB103 25648 HLH 51997 b
	16309	+	1 provider. Time accrued during which the project was eligible
	16310	+	2 for credits under an agreement under this Act shall count
	16311	+	3 toward the duration of the credit subject to limitations
	16312	+	4 described in Section 5-45 of the Economic Development for a
	16313	+	5 Growing Economy Tax Credit Act.
	16314	+	6 (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
	16315	+	7 102-1112, eff. 12-21-22; 102-1125, eff. 2-3-23.)
	16316	+	8 (20 ILCS 686/30)
	16317	+	9 Sec. 30. Tax credit awards.
	16318	+	10 (a) Subject to the conditions set forth in this Act, a
	16319	+	11 taxpayer is entitled to a credit against the tax imposed
	16320	+	12 pursuant to subsections (a) and (b) of Section 201 of the
	16321	+	13 Illinois Income Tax Act for a taxable year beginning on or
	16322	+	14 after January 1, 2025 if the taxpayer is awarded a credit by
	16323	+	15 the Department in accordance with an agreement under this Act.
	16324	+	16 The Department has authority to award credits under this Act
	16325	+	17 on and after January 1, 2022.
	16326	+	18 (b) REV Illinois Credits. A taxpayer may receive a tax
	16327	+	19 credit against the tax imposed under subsections (a) and (b)
	16328	+	20 of Section 201 of the Illinois Income Tax Act, not to exceed
	16329	+	21 the sum of (i) 75% of the incremental income tax attributable
	16330	+	22 to new employees at the applicant's project and (ii) 10% of the
	16331	+	23 training costs of the new employees. If the project is located
	16332	+	24 in an underserved area or an energy transition area, then the
	16333	+	25 amount of the credit may not exceed the sum of (i) 100% of the
	16334	+
	16335	+
	16336	+
	16337	+
	16338	+
	16339	+	SB1963 Enrolled - 453 - LRB103 25648 HLH 51997 b
	16340	+
	16341	+
	16342	+	SB1963 Enrolled- 454 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 454 - LRB103 25648 HLH 51997 b
	16343	+	SB1963 Enrolled - 454 - LRB103 25648 HLH 51997 b
	16344	+	1 incremental income tax attributable to new employees at the
	16345	+	2 applicant's project; and (ii) 10% of the training costs of the
	16346	+	3 new employees. The percentage of training costs includable in
	16347	+	4 the calculation may be increased by an additional 15% for
	16348	+	5 training costs associated with new employees that are recent
	16349	+	6 (2 years or less) graduates, certificate holders, or
	16350	+	7 credential recipients from an institution of higher education
	16351	+	8 in Illinois, or, if the training is provided by an institution
	16352	+	9 of higher education in Illinois, the Clean Jobs Workforce
	16353	+	10 Network Program, or an apprenticeship and training program
	16354	+	11 located in Illinois and approved by and registered with the
	16355	+	12 United States Department of Labor's Bureau of Apprenticeship
	16356	+	13 and Training. An applicant is also eligible for a training
	16357	+	14 credit that shall not exceed 10% of the training costs of
	16358	+	15 retained employees for the purpose of upskilling to meet the
	16359	+	16 operational needs of the applicant or the REV Illinois
	16360	+	17 Project. The percentage of training costs includable in the
	16361	+	18 calculation shall not exceed a total of 25%. If an applicant
	16362	+	19 agrees to hire the required number of new employees, then the
	16363	+	20 maximum amount of the credit for that applicant may be
	16364	+	21 increased by an amount not to exceed 75% of the incremental
	16365	+	22 income tax attributable to retained employees at the
	16366	+	23 applicant's project; provided that, in order to receive the
	16367	+	24 increase for retained employees, the applicant must, if
	16368	+	25 applicable, meet or exceed the statewide baseline. For
	16369	+	26 agreements entered into on or after the effective date of this
	16370	+
	16371	+
	16372	+
	16373	+
	16374	+
	16375	+	SB1963 Enrolled - 454 - LRB103 25648 HLH 51997 b
	16376	+
	16377	+
	16378	+	SB1963 Enrolled- 455 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 455 - LRB103 25648 HLH 51997 b
	16379	+	SB1963 Enrolled - 455 - LRB103 25648 HLH 51997 b
	16380	+	1 amendatory Act of the 103rd General Assembly and before June
	16381	+	2 1, 2024 that qualify under paragraph (5) of subsection (c) of
	16382	+	3 Section 20, a taxpayer may receive a tax credit not to exceed
	16383	+	4 75% of the incremental income tax attributable to retained
	16384	+	5 employees at the applicant's project. If the project is in an
	16385	+	6 underserved area or an energy transition area and qualifies
	16386	+	7 under paragraph (5) of subsection (c) of Section 20, then the
	16387	+	8 maximum amount of the credit attributable to retained
	16388	+	9 employees for the applicant may be increased to an amount not
	16389	+	10 to exceed 100% of the incremental income tax attributable to
	16390	+	11 retained employees at the applicant's project.
	16391	+	12 If the Project is in an underserved area or an energy
	16392	+	13 transition area, the maximum amount of the credit attributable
	16393	+	14 to retained employees for the applicant may be increased to an
	16394	+	15 amount not to exceed 100% of the incremental income tax
	16395	+	16 attributable to retained employees at the applicant's project;
	16396	+	17 provided that, in order to receive the increase for retained
	16397	+	18 employees, the applicant must meet or exceed the statewide
	16398	+	19 baseline. REV Illinois Credits awarded may include credit
	16399	+	20 earned for incremental income tax withheld and training costs
	16400	+	21 incurred by the taxpayer beginning on or after January 1,
	16401	+	22 2022. Credits so earned and certified by the Department may be
	16402	+	23 applied against the tax imposed by subsections (a) and (b) of
	16403	+	24 Section 201 of the Illinois Income Tax Act for taxable years
	16404	+	25 beginning on or after January 1, 2025.
	16405	+	26 (c) REV Construction Jobs Credit. For construction wages
	16406	+
	16407	+
	16408	+
	16409	+
	16410	+
	16411	+	SB1963 Enrolled - 455 - LRB103 25648 HLH 51997 b
	16412	+
	16413	+
	16414	+	SB1963 Enrolled- 456 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 456 - LRB103 25648 HLH 51997 b
	16415	+	SB1963 Enrolled - 456 - LRB103 25648 HLH 51997 b
	16416	+	1 associated with a project that qualified for a REV Illinois
	16417	+	2 Credit under subsection (b), the taxpayer may receive a tax
	16418	+	3 credit against the tax imposed under subsections (a) and (b)
	16419	+	4 of Section 201 of the Illinois Income Tax Act in an amount
	16420	+	5 equal to 50% of the incremental income tax attributable to
	16421	+	6 construction wages paid in connection with construction of the
	16422	+	7 project facilities, as a jobs credit for workers hired to
	16423	+	8 construct the project.
	16424	+	9 The REV Construction Jobs Credit may not exceed 75% of the
	16425	+	10 amount of the incremental income tax attributable to
	16426	+	11 construction wages paid in connection with construction of the
	16427	+	12 project facilities if the project is in an underserved area or
	16428	+	13 an energy transition area.
	16429	+	14 (d) The Department shall certify to the Department of
	16430	+	15 Revenue: (1) the identity of Taxpayers that are eligible for
	16431	+	16 the REV Illinois Credit and REV Construction Jobs Credit; (2)
	16432	+	17 the amount of the REV Illinois Credits and REV Construction
	16433	+	18 Jobs Credits awarded in each calendar year; and (3) the amount
	16434	+	19 of the REV Illinois Credit and REV Construction Jobs Credit
	16435	+	20 claimed in each calendar year. REV Illinois Credits awarded
	16436	+	21 may include credit earned for Incremental Income Tax withheld
	16437	+	22 and Training Costs incurred by the Taxpayer beginning on or
	16438	+	23 after January 1, 2022. Credits so earned and certified by the
	16439	+	24 Department may be applied against the tax imposed by Section
	16440	+	25 201(a) and (b) of the Illinois Income Tax Act for taxable years
	16441	+	26 beginning on or after January 1, 2025.
	16442	+
	16443	+
	16444	+
	16445	+
	16446	+
	16447	+	SB1963 Enrolled - 456 - LRB103 25648 HLH 51997 b
	16448	+
	16449	+
	16450	+	SB1963 Enrolled- 457 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 457 - LRB103 25648 HLH 51997 b
	16451	+	SB1963 Enrolled - 457 - LRB103 25648 HLH 51997 b
	16452	+	1 (e) Applicants seeking certification for a tax credits
	16453	+	2 related to the construction of the project facilities in the
	16454	+	3 State shall require the contractor to enter into a project
	16455	+	4 labor agreement that conforms with the Project Labor
	16456	+	5 Agreements Act.
	16457	+	6 (f) Any applicant issued a certificate for a tax credit or
	16458	+	7 tax exemption under this Act must annually report to the
	16459	+	8 Department the total project tax benefits received. Reports
	16460	+	9 are due no later than May 31 of each year and shall cover the
	16461	+	10 previous calendar year. The first report is for the 2022
	16462	+	11 calendar year and is due no later than May 31, 2023. For
	16463	+	12 applicants issued a certificate of exemption under Section 105
	16464	+	13 of this Act, the report shall be the same as required for a
	16465	+	14 High Impact Business under subsection (a-5) of Section 8.1 of
	16466	+	15 the Illinois Enterprise Zone Act. Each person required to file
	16467	+	16 a return under the Gas Revenue Tax Act, the Electricity Excise
	16468	+	17 Tax Law, or the Telecommunications Excise Tax Act shall file a
	16469	+	18 report containing information about customers that are issued
	16470	+	19 an exemption certificate under Section 95 of this Act in the
	16471	+	20 same manner and form as they are required to report under
	16472	+	21 subsection (b) of Section 8.1 of the Illinois Enterprise Zone
	16473	+	22 Act.
	16474	+	23 (g) Nothing in this Act shall prohibit an award of credit
	16475	+	24 to an applicant that uses a PEO if all other award criteria are
	16476	+	25 satisfied.
	16477	+	26 (h) With respect to any portion of a REV Illinois Credit
	16478	+
	16479	+
	16480	+
	16481	+
	16482	+
	16483	+	SB1963 Enrolled - 457 - LRB103 25648 HLH 51997 b
	16484	+
	16485	+
	16486	+	SB1963 Enrolled- 458 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 458 - LRB103 25648 HLH 51997 b
	16487	+	SB1963 Enrolled - 458 - LRB103 25648 HLH 51997 b
	16488	+	1 that is based on the incremental income tax attributable to
	16489	+	2 new employees or retained employees, in lieu of the Credit
	16490	+	3 allowed under this Act against the taxes imposed pursuant to
	16491	+	4 subsections (a) and (b) of Section 201 of the Illinois Income
	16492	+	5 Tax Act, a taxpayer that otherwise meets the criteria set
	16493	+	6 forth in this Section, the taxpayer may elect to claim the
	16494	+	7 credit, on or after January 1, 2025, against its obligation to
	16495	+	8 pay over withholding under Section 704A of the Illinois Income
	16496	+	9 Tax Act. The election shall be made in the manner prescribed by
	16497	+	10 the Department of Revenue and once made shall be irrevocable.
	16498	+	11 (Source: P.A. 102-669, eff. 11-16-21; 102-1112, eff. 12-21-22;
	16499	+	12 102-1125, eff. 2-3-23; revised 4-5-23.)
	16500	+	13 (20 ILCS 686/40)
	16501	+	14 Sec. 40. Amount and duration of the credits; limitation to
	16502	+	15 amount of costs of specified items. The Department shall
	16503	+	16 determine the amount and duration of the REV Illinois Credit
	16504	+	17 awarded under this Act, subject to the limitations set forth
	16505	+	18 in this Act. For a project that qualified under paragraph (1),
	16506	+	19 (2), (4), or (4.1), or (5) of subsection (c) of Section 20, the
	16507	+	20 duration of the credit may not exceed 15 taxable years, with an
	16508	+	21 option to renew the agreement for no more than one term not to
	16509	+	22 exceed an additional 15 taxable years. For a project that
	16510	+	23 qualified under paragraph (3) or (3.1) of subsection (c) of
	16511	+	24 Section 20, the duration of the credit may not exceed 10
	16512	+	25 taxable years, with an option to renew the agreement for no
	16513	+
	16514	+
	16515	+
	16516	+
	16517	+
	16518	+	SB1963 Enrolled - 458 - LRB103 25648 HLH 51997 b
	16519	+
	16520	+
	16521	+	SB1963 Enrolled- 459 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 459 - LRB103 25648 HLH 51997 b
	16522	+	SB1963 Enrolled - 459 - LRB103 25648 HLH 51997 b
	16523	+	1 more than one term not to exceed an additional 10 taxable
	16524	+	2 years. The credit may be stated as a percentage of the
	16525	+	3 incremental income tax and training costs attributable to the
	16526	+	4 applicant's project and may include a fixed dollar limitation.
	16527	+	5 Nothing in this Section shall prevent the Department, in
	16528	+	6 consultation with the Department of Revenue, from adopting
	16529	+	7 rules to extend the sunset of any earned, existing, and unused
	16530	+	8 tax credit or credits a taxpayer may be in possession of, as
	16531	+	9 provided for in Section 605-1055 of the Department of Commerce
	16532	+	10 and Economic Opportunity Law of the Civil Administrative Code
	16533	+	11 of Illinois, notwithstanding the carry-forward provisions
	16534	+	12 pursuant to paragraph (4) of Section 211 of the Illinois
	16535	+	13 Income Tax Act.
	16536	+	14 (Source: P.A. 102-669, eff. 11-16-21; 102-1112, eff. 12-21-22;
	16537	+	15 102-1125, eff. 2-3-23; revised 4-5-23.)
	16538	+	16 (20 ILCS 686/45)
	16539	+	17 Sec. 45. Contents of agreements with applicants.
	16540	+	18 (a) The Department shall enter into an agreement with an
	16541	+	19 applicant that is awarded a credit under this Act. The
	16542	+	20 agreement shall include all of the following:
	16543	+	21 (1) A detailed description of the project that is the
	16544	+	22 subject of the agreement, including the location and
	16545	+	23 amount of the investment and jobs created or retained.
	16546	+	24 (2) The duration of the credit, the first taxable year
	16547	+	25 for which the credit may be awarded, and the first taxable
	16548	+
	16549	+
	16550	+
	16551	+
	16552	+
	16553	+	SB1963 Enrolled - 459 - LRB103 25648 HLH 51997 b
	16554	+
	16555	+
	16556	+	SB1963 Enrolled- 460 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 460 - LRB103 25648 HLH 51997 b
	16557	+	SB1963 Enrolled - 460 - LRB103 25648 HLH 51997 b
	16558	+	1 year in which the credit may be used by the taxpayer.
	16559	+	2 (3) The credit amount that will be allowed for each
	16560	+	3 taxable year.
	16561	+	4 (4) For a project qualified under paragraphs (1), (2),
	16562	+	5 or (4), or (5) of subsection (c) of Section 20, a
	16563	+	6 requirement that the taxpayer shall maintain operations at
	16564	+	7 the project location a minimum number of years not to
	16565	+	8 exceed 15. For a project qualified under paragraph (3) of
	16566	+	9 subsection (c) of Section 20, a requirement that the
	16567	+	10 taxpayer shall maintain operations at the project location
	16568	+	11 a minimum number of years not to exceed 10.
	16569	+	12 (5) A specific method for determining the number of
	16570	+	13 new employees and if applicable, retained employees,
	16571	+	14 employed during a taxable year.
	16572	+	15 (6) A requirement that the taxpayer shall annually
	16573	+	16 report to the Department the number of new employees, the
	16574	+	17 incremental income tax withheld in connection with the new
	16575	+	18 employees, and any other information the Department deems
	16576	+	19 necessary and appropriate to perform its duties under this
	16577	+	20 Act.
	16578	+	21 (7) A requirement that the Director is authorized to
	16579	+	22 verify with the appropriate State agencies the amounts
	16580	+	23 reported under paragraph (6), and after doing so shall
	16581	+	24 issue a certificate to the taxpayer stating that the
	16582	+	25 amounts have been verified.
	16583	+	26 (8) A requirement that the taxpayer shall provide
	16584	+
	16585	+
	16586	+
	16587	+
	16588	+
	16589	+	SB1963 Enrolled - 460 - LRB103 25648 HLH 51997 b
	16590	+
	16591	+
	16592	+	SB1963 Enrolled- 461 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 461 - LRB103 25648 HLH 51997 b
	16593	+	SB1963 Enrolled - 461 - LRB103 25648 HLH 51997 b
	16594	+	1 written notification to the Director not more than 30 days
	16595	+	2 after the taxpayer makes or receives a proposal that would
	16596	+	3 transfer the taxpayer's State tax liability obligations to
	16597	+	4 a successor taxpayer.
	16598	+	5 (9) A detailed description of the number of new
	16599	+	6 employees to be hired, and the occupation and payroll of
	16600	+	7 full-time jobs to be created or retained because of the
	16601	+	8 project.
	16602	+	9 (10) The minimum investment the taxpayer will make in
	16603	+	10 capital improvements, the time period for placing the
	16604	+	11 property in service, and the designated location in
	16605	+	12 Illinois for the investment.
	16606	+	13 (11) A requirement that the taxpayer shall provide
	16607	+	14 written notification to the Director and the Director's
	16608	+	15 designee not more than 30 days after the taxpayer
	16609	+	16 determines that the minimum job creation or retention,
	16610	+	17 employment payroll, or investment no longer is or will be
	16611	+	18 achieved or maintained as set forth in the terms and
	16612	+	19 conditions of the agreement. Additionally, the
	16613	+	20 notification should outline to the Department the number
	16614	+	21 of layoffs, date of the layoffs, and detail taxpayer's
	16615	+	22 efforts to provide career and training counseling for the
	16616	+	23 impacted workers with industry-related certifications and
	16617	+	24 trainings.
	16618	+	25 (12) If applicable, a A provision that, if the total
	16619	+	26 number of new employees falls below a specified level, the
	16620	+
	16621	+
	16622	+
	16623	+
	16624	+
	16625	+	SB1963 Enrolled - 461 - LRB103 25648 HLH 51997 b
	16626	+
	16627	+
	16628	+	SB1963 Enrolled- 462 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 462 - LRB103 25648 HLH 51997 b
	16629	+	SB1963 Enrolled - 462 - LRB103 25648 HLH 51997 b
	16630	+	1 allowance of credit shall be suspended until the number of
	16631	+	2 new employees equals or exceeds the agreement amount.
	16632	+	3 (13) If applicable, a provision that specifies the
	16633	+	4 statewide baseline at the time of application for retained
	16634	+	5 employees. The Additionally, the agreement must have a
	16635	+	6 provision addressing if the total number of retained
	16636	+	7 employees falls below the lesser of the statewide baseline
	16637	+	8 or the retention requirements specified in the agreement,
	16638	+	9 the allowance of the credit shall be suspended until the
	16639	+	10 number of retained employees equals or exceeds the
	16640	+	11 agreement amount.
	16641	+	12 (14) A detailed description of the items for which the
	16642	+	13 costs incurred by the Taxpayer will be included in the
	16643	+	14 limitation on the Credit provided in Section 40.
	16644	+	15 (15) If the agreement is entered into before the
	16645	+	16 effective date of the changes made to this Section by this
	16646	+	17 amendatory Act of the 103rd General Assembly, a A
	16647	+	18 provision stating that if the taxpayer fails to meet
	16648	+	19 either the investment or job creation and retention
	16649	+	20 requirements specified in the agreement during the entire
	16650	+	21 5-year period beginning on the first day of the first
	16651	+	22 taxable year in which the agreement is executed and ending
	16652	+	23 on the last day of the fifth taxable year after the
	16653	+	24 agreement is executed, then the agreement is automatically
	16654	+	25 terminated on the last day of the fifth taxable year after
	16655	+	26 the agreement is executed, and the taxpayer is not
	16656	+
	16657	+
	16658	+
	16659	+
	16660	+
	16661	+	SB1963 Enrolled - 462 - LRB103 25648 HLH 51997 b
	16662	+
	16663	+
	16664	+	SB1963 Enrolled- 463 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 463 - LRB103 25648 HLH 51997 b
	16665	+	SB1963 Enrolled - 463 - LRB103 25648 HLH 51997 b
	16666	+	1 entitled to the award of any credits for any of that 5-year
	16667	+	2 period. If the agreement is entered into on or after the
	16668	+	3 effective date of the changes made to this Section by this
	16669	+	4 amendatory Act of the 103rd General Assembly, a provision
	16670	+	5 stating that if the taxpayer fails to meet either the
	16671	+	6 investment or job creation and retention requirements
	16672	+	7 specified in the agreement during the entire 10-year
	16673	+	8 period beginning on the effective date of the agreement
	16674	+	9 and ending 10 years after the effective date of the
	16675	+	10 agreement, then the agreement is automatically terminated,
	16676	+	11 and the taxpayer is not entitled to the award of any
	16677	+	12 credits for any of that 10-year period.
	16678	+	13 (16) A provision stating that if the taxpayer ceases
	16679	+	14 principal operations with the intent to permanently shut
	16680	+	15 down the project in the State during the term of the
	16681	+	16 Agreement, then the entire credit amount awarded to the
	16682	+	17 taxpayer prior to the date the taxpayer ceases principal
	16683	+	18 operations shall be returned to the Department and shall
	16684	+	19 be reallocated to the local workforce investment area in
	16685	+	20 which the project was located.
	16686	+	21 (17) A provision stating that the Taxpayer must
	16687	+	22 provide the reports outlined in Sections 50 and 55 on or
	16688	+	23 before April 15 each year.
	16689	+	24 (18) A provision requiring the taxpayer to report
	16690	+	25 annually its contractual obligations or otherwise with a
	16691	+	26 recycling facility for its operations.
	16692	+
	16693	+
	16694	+
	16695	+
	16696	+
	16697	+	SB1963 Enrolled - 463 - LRB103 25648 HLH 51997 b
	16698	+
	16699	+
	16700	+	SB1963 Enrolled- 464 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 464 - LRB103 25648 HLH 51997 b
	16701	+	SB1963 Enrolled - 464 - LRB103 25648 HLH 51997 b
	16702	+	1 (19) Any other performance conditions or contract
	16703	+	2 provisions the Department determines are necessary or
	16704	+	3 appropriate.
	16705	+	4 (20) Each taxpayer under paragraph (1) of subsection
	16706	+	5 (c) of Section 20 above shall maintain labor neutrality
	16707	+	6 toward any union organizing campaign for any employees of
	16708	+	7 the taxpayer assigned to work on the premises of the REV
	16709	+	8 Illinois Project Site. This paragraph shall not apply to
	16710	+	9 an electric vehicle manufacturer, electric vehicle
	16711	+	10 component part manufacturer, electric vehicle power supply
	16712	+	11 manufacturer, or renewable energy manufacturer, or any
	16713	+	12 joint venture including an electric vehicle manufacturer,
	16714	+	13 electric vehicle component part manufacturer, electric
	16715	+	14 vehicle power supply manufacturer, or renewable energy
	16716	+	15 manufacturer, who is subject to collective bargaining
	16717	+	16 agreement entered into prior to the taxpayer filing an
	16718	+	17 application pursuant to this Act.
	16719	+	18 (b) The Department shall post on its website the terms of
	16720	+	19 each agreement entered into under this Act. Such information
	16721	+	20 shall be posted within 10 days after entering into the
	16722	+	21 agreement and must include the following:
	16723	+	22 (1) the name of the taxpayer;
	16724	+	23 (2) the location of the project;
	16725	+	24 (3) the estimated value of the credit;
	16726	+	25 (4) the number of new employee jobs and, if
	16727	+	26 applicable, number of retained employee jobs at the
	16728	+
	16729	+
	16730	+
	16731	+
	16732	+
	16733	+	SB1963 Enrolled - 464 - LRB103 25648 HLH 51997 b
	16734	+
	16735	+
	16736	+	SB1963 Enrolled- 465 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 465 - LRB103 25648 HLH 51997 b
	16737	+	SB1963 Enrolled - 465 - LRB103 25648 HLH 51997 b
	16738	+	1 project; and
	16739	+	2 (5) whether or not the project is in an underserved
	16740	+	3 area or energy transition area.
	16741	+	4 (Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23;
	16742	+	5 revised 4-5-23.)
	16743	+	6 ARTICLE 80. CIGARETTE TAX
	16744	+	7 Section 80-5. The Cigarette Tax Act is amended by changing
	16745	+	8 Section 2 as follows:
	16746	+	9 (35 ILCS 130/2) (from Ch. 120, par. 453.2)
	16747	+	10 Sec. 2. Tax imposed; rate; collection, payment, and
	16748	+	11 distribution; discount.
	16749	+	12 (a) Beginning on July 1, 2019, in place of the aggregate
	16750	+	13 tax rate of 99 mills previously imposed by this Act, a tax is
	16751	+	14 imposed upon any person engaged in business as a retailer of
	16752	+	15 cigarettes at the rate of 149 mills per cigarette sold or
	16753	+	16 otherwise disposed of in the course of such business in this
	16754	+	17 State.
	16755	+	18 (b) The payment of such taxes shall be evidenced by a stamp
	16756	+	19 affixed to each original package of cigarettes, or an
	16757	+	20 authorized substitute for such stamp imprinted on each
	16758	+	21 original package of such cigarettes underneath the sealed
	16759	+	22 transparent outside wrapper of such original package, as
	16760	+	23 hereinafter provided. However, such taxes are not imposed upon
	16761	+
	16762	+
	16763	+
	16764	+
	16765	+
	16766	+	SB1963 Enrolled - 465 - LRB103 25648 HLH 51997 b
	16767	+
	16768	+
	16769	+	SB1963 Enrolled- 466 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 466 - LRB103 25648 HLH 51997 b
	16770	+	SB1963 Enrolled - 466 - LRB103 25648 HLH 51997 b
	16771	+	1 any activity in such business in interstate commerce or
	16772	+	2 otherwise, which activity may not under the Constitution and
	16773	+	3 statutes of the United States be made the subject of taxation
	16774	+	4 by this State.
	16775	+	5 Out of the 149 mills per cigarette tax imposed by
	16776	+	6 subsection (a), until July 1, 2023, the revenues received from
	16777	+	7 4 mills shall be paid into the Common School Fund each month,
	16778	+	8 not to exceed $9,000,000 per month. Out of the 149 mills per
	16779	+	9 cigarette tax imposed by subsection (a), until July 1, 2023,
	16780	+	10 all of the revenues received from 7 mills shall be paid into
	16781	+	11 the Common School Fund each month. Out of the 149 mills per
	16782	+	12 cigarette tax imposed by subsection (a), until July 1, 2023,
	16783	+	13 50 mills per cigarette each month shall be paid into the
	16784	+	14 Healthcare Provider Relief Fund.
	16785	+	15 Beginning on July 1, 2006 and until July 1, 2023, all of
	16786	+	16 the moneys received by the Department of Revenue pursuant to
	16787	+	17 this Act and the Cigarette Use Tax Act, other than the moneys
	16788	+	18 that are dedicated to the Common School Fund and, beginning on
	16789	+	19 the effective date of this amendatory Act of the 97th General
	16790	+	20 Assembly, other than the moneys from the additional taxes
	16791	+	21 imposed by this amendatory Act of the 97th General Assembly
	16792	+	22 that must be paid each month into the Healthcare Provider
	16793	+	23 Relief Fund, and other than the moneys from the additional
	16794	+	24 taxes imposed by this amendatory Act of the 101st General
	16795	+	25 Assembly that must be paid each month under subsection (c),
	16796	+	26 shall be distributed each month as follows: first, there shall
	16797	+
	16798	+
	16799	+
	16800	+
	16801	+
	16802	+	SB1963 Enrolled - 466 - LRB103 25648 HLH 51997 b
	16803	+
	16804	+
	16805	+	SB1963 Enrolled- 467 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 467 - LRB103 25648 HLH 51997 b
	16806	+	SB1963 Enrolled - 467 - LRB103 25648 HLH 51997 b
	16807	+	1 be paid into the General Revenue Fund an amount that, when
	16808	+	2 added to the amount paid into the Common School Fund for that
	16809	+	3 month, equals $29,200,000; then, from the moneys remaining, if
	16810	+	4 any amounts required to be paid into the General Revenue Fund
	16811	+	5 in previous months remain unpaid, those amounts shall be paid
	16812	+	6 into the General Revenue Fund; then from the moneys remaining,
	16813	+	7 $5,000,000 per month shall be paid into the School
	16814	+	8 Infrastructure Fund; then, if any amounts required to be paid
	16815	+	9 into the School Infrastructure Fund in previous months remain
	16816	+	10 unpaid, those amounts shall be paid into the School
	16817	+	11 Infrastructure Fund; then the moneys remaining, if any, shall
	16818	+	12 be paid into the Long-Term Care Provider Fund. Any amounts
	16819	+	13 required to be paid into the General Revenue Fund, the School
	16820	+	14 Infrastructure Fund, the Long-Term Care Provider Fund, the
	16821	+	15 Common School Fund, the Capital Projects Fund, or the
	16822	+	16 Healthcare Provider Relief Fund under this subsection that
	16823	+	17 remain unpaid as of July 1, 2023 shall be deemed satisfied on
	16824	+	18 that date, eliminating any deficiency accrued through that
	16825	+	19 date.
	16826	+	20 (c) Beginning on July 1, 2019 and until July 1, 2023, all
	16827	+	21 of the moneys from the additional taxes imposed by Public Act
	16828	+	22 101-31, except for moneys received from the tax on electronic
	16829	+	23 cigarettes, received by the Department of Revenue pursuant to
	16830	+	24 this Act, the Cigarette Use Tax Act, and the Tobacco Products
	16831	+	25 Tax Act of 1995 shall be distributed each month into the
	16832	+	26 Capital Projects Fund.
	16833	+
	16834	+
	16835	+
	16836	+
	16837	+
	16838	+	SB1963 Enrolled - 467 - LRB103 25648 HLH 51997 b
	16839	+
	16840	+
	16841	+	SB1963 Enrolled- 468 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 468 - LRB103 25648 HLH 51997 b
	16842	+	SB1963 Enrolled - 468 - LRB103 25648 HLH 51997 b
	16843	+	1 (c-5) Beginning on July 1, 2023, all of the moneys
	16844	+	2 received by the Department of Revenue pursuant to (i) this
	16845	+	3 Act, (ii) the Cigarette Use Tax Act, and (iii) the tax imposed
	16846	+	4 on little cigars under Section 10-10 of the Tobacco Products
	16847	+	5 Tax Act of 1995 shall be paid each month as follows:
	16848	+	6 (1) 7% into the Common School Fund;
	16849	+	7 (2) 34% into the Healthcare Provider Relief Fund;
	16850	+	8 (3) 34% into the Capital Projects Fund; and
	16851	+	9 (4) 25% into the General Revenue Fund.
	16852	+	10 (d) Until July 1, 2023, except Except for moneys received
	16853	+	11 from the additional taxes imposed by Public Act 101-31, moneys
	16854	+	12 collected from the tax imposed on little cigars under Section
	16855	+	13 10-10 of the Tobacco Products Tax Act of 1995 shall be included
	16856	+	14 with the moneys collected under the Cigarette Tax Act and the
	16857	+	15 Cigarette Use Tax Act when making distributions to the Common
	16858	+	16 School Fund, the Healthcare Provider Relief Fund, the General
	16859	+	17 Revenue Fund, the School Infrastructure Fund, and the
	16860	+	18 Long-Term Care Provider Fund under this Section. Any amounts,
	16861	+	19 including moneys collected from the tax imposed on little
	16862	+	20 cigars under Section 10-10 of the Tobacco Products Tax Act of
	16863	+	21 1995, that are required to be paid into the General Revenue
	16864	+	22 Fund, the School Infrastructure Fund, the Long-Term Care
	16865	+	23 Provider Fund, the Common School Fund, the Capital Projects
	16866	+	24 Fund, or the Healthcare Provider Relief Fund under subsection
	16867	+	25 (b) that remain unpaid as of July 1, 2023 shall be deemed
	16868	+	26 satisfied on that date, eliminating any deficiency accrued
	16869	+
	16870	+
	16871	+
	16872	+
	16873	+
	16874	+	SB1963 Enrolled - 468 - LRB103 25648 HLH 51997 b
	16875	+
	16876	+
	16877	+	SB1963 Enrolled- 469 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 469 - LRB103 25648 HLH 51997 b
	16878	+	SB1963 Enrolled - 469 - LRB103 25648 HLH 51997 b
	16879	+	1 through that date. Beginning on July 1, 2023, moneys collected
	16880	+	2 from the tax imposed on little cigars under Section 10-10 of
	16881	+	3 the Tobacco Products Tax Act of 1995 shall be included with the
	16882	+	4 moneys collected under the Cigarette Tax Act and the Cigarette
	16883	+	5 Use Tax Act when making distributions under subsections (c-5).
	16884	+	6 (e) If the tax imposed herein terminates or has
	16885	+	7 terminated, distributors who have bought stamps while such tax
	16886	+	8 was in effect and who therefore paid such tax, but who can
	16887	+	9 show, to the Department's satisfaction, that they sold the
	16888	+	10 cigarettes to which they affixed such stamps after such tax
	16889	+	11 had terminated and did not recover the tax or its equivalent
	16890	+	12 from purchasers, shall be allowed by the Department to take
	16891	+	13 credit for such absorbed tax against subsequent tax stamp
	16892	+	14 purchases from the Department by such distributor.
	16893	+	15 (f) The impact of the tax levied by this Act is imposed
	16894	+	16 upon the retailer and shall be prepaid or pre-collected by the
	16895	+	17 distributor for the purpose of convenience and facility only,
	16896	+	18 and the amount of the tax shall be added to the price of the
	16897	+	19 cigarettes sold by such distributor. Collection of the tax
	16898	+	20 shall be evidenced by a stamp or stamps affixed to each
	16899	+	21 original package of cigarettes, as hereinafter provided. Any
	16900	+	22 distributor who purchases stamps may credit any excess
	16901	+	23 payments verified by the Department against amounts
	16902	+	24 subsequently due for the purchase of additional stamps, until
	16903	+	25 such time as no excess payment remains.
	16904	+	26 (g) Each distributor shall collect the tax from the
	16905	+
	16906	+
	16907	+
	16908	+
	16909	+
	16910	+	SB1963 Enrolled - 469 - LRB103 25648 HLH 51997 b
	16911	+
	16912	+
	16913	+	SB1963 Enrolled- 470 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 470 - LRB103 25648 HLH 51997 b
	16914	+	SB1963 Enrolled - 470 - LRB103 25648 HLH 51997 b
	16915	+	1 retailer at or before the time of the sale, shall affix the
	16916	+	2 stamps as hereinafter required, and shall remit the tax
	16917	+	3 collected from retailers to the Department, as hereinafter
	16918	+	4 provided. Any distributor who fails to properly collect and
	16919	+	5 pay the tax imposed by this Act shall be liable for the tax.
	16920	+	6 (h) Any distributor having cigarettes in his or her
	16921	+	7 possession on July 1, 2019 to which tax stamps have been
	16922	+	8 affixed, and any distributor having stamps in his or her
	16923	+	9 possession on July 1, 2019 that have not been affixed to
	16924	+	10 packages of cigarettes before July 1, 2019, is required to pay
	16925	+	11 the additional tax that begins on July 1, 2019 imposed by this
	16926	+	12 amendatory Act of the 101st General Assembly to the extent
	16927	+	13 that the volume of affixed and unaffixed stamps in the
	16928	+	14 distributor's possession on July 1, 2019 exceeds the average
	16929	+	15 monthly volume of cigarette stamps purchased by the
	16930	+	16 distributor in calendar year 2018. This payment, less the
	16931	+	17 discount provided in subsection (l), is due when the
	16932	+	18 distributor first makes a purchase of cigarette stamps on or
	16933	+	19 after July 1, 2019 or on the first due date of a return under
	16934	+	20 this Act occurring on or after July 1, 2019, whichever occurs
	16935	+	21 first. Those distributors may elect to pay the additional tax
	16936	+	22 on packages of cigarettes to which stamps have been affixed
	16937	+	23 and on any stamps in the distributor's possession that have
	16938	+	24 not been affixed to packages of cigarettes in their possession
	16939	+	25 on July 1, 2019 over a period not to exceed 12 months from the
	16940	+	26 due date of the additional tax by notifying the Department in
	16941	+
	16942	+
	16943	+
	16944	+
	16945	+
	16946	+	SB1963 Enrolled - 470 - LRB103 25648 HLH 51997 b
	16947	+
	16948	+
	16949	+	SB1963 Enrolled- 471 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 471 - LRB103 25648 HLH 51997 b
	16950	+	SB1963 Enrolled - 471 - LRB103 25648 HLH 51997 b
	16951	+	1 writing. The first payment for distributors making such
	16952	+	2 election is due when the distributor first makes a purchase of
	16953	+	3 cigarette tax stamps on or after July 1, 2019 or on the first
	16954	+	4 due date of a return under this Act occurring on or after July
	16955	+	5 1, 2019, whichever occurs first. Distributors making such an
	16956	+	6 election are not entitled to take the discount provided in
	16957	+	7 subsection (l) on such payments.
	16958	+	8 (i) Any retailer having cigarettes in its possession on
	16959	+	9 July 1, 2019 to which tax stamps have been affixed is not
	16960	+	10 required to pay the additional tax that begins on July 1, 2019
	16961	+	11 imposed by this amendatory Act of the 101st General Assembly
	16962	+	12 on those stamped cigarettes.
	16963	+	13 (j) Distributors making sales of cigarettes to secondary
	16964	+	14 distributors shall add the amount of the tax to the price of
	16965	+	15 the cigarettes sold by the distributors. Secondary
	16966	+	16 distributors making sales of cigarettes to retailers shall
	16967	+	17 include the amount of the tax in the price of the cigarettes
	16968	+	18 sold to retailers. The amount of tax shall not be less than the
	16969	+	19 amount of taxes imposed by the State and all local
	16970	+	20 jurisdictions. The amount of local taxes shall be calculated
	16971	+	21 based on the location of the retailer's place of business
	16972	+	22 shown on the retailer's certificate of registration or
	16973	+	23 sub-registration issued to the retailer pursuant to Section 2a
	16974	+	24 of the Retailers' Occupation Tax Act. The original packages of
	16975	+	25 cigarettes sold to the retailer shall bear all the required
	16976	+	26 stamps, or other indicia, for the taxes included in the price
	16977	+
	16978	+
	16979	+
	16980	+
	16981	+
	16982	+	SB1963 Enrolled - 471 - LRB103 25648 HLH 51997 b
	16983	+
	16984	+
	16985	+	SB1963 Enrolled- 472 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 472 - LRB103 25648 HLH 51997 b
	16986	+	SB1963 Enrolled - 472 - LRB103 25648 HLH 51997 b
	16987	+	1 of cigarettes.
	16988	+	2 (k) The amount of the Cigarette Tax imposed by this Act
	16989	+	3 shall be separately stated, apart from the price of the goods,
	16990	+	4 by distributors, manufacturer representatives, secondary
	16991	+	5 distributors, and retailers, in all bills and sales invoices.
	16992	+	6 (l) The distributor shall be required to collect the tax
	16993	+	7 provided under paragraph (a) hereof, and, to cover the costs
	16994	+	8 of such collection, shall be allowed a discount during any
	16995	+	9 year commencing July 1st and ending the following June 30th in
	16996	+	10 accordance with the schedule set out hereinbelow, which
	16997	+	11 discount shall be allowed at the time of purchase of the stamps
	16998	+	12 when purchase is required by this Act, or at the time when the
	16999	+	13 tax is remitted to the Department without the purchase of
	17000	+	14 stamps from the Department when that method of paying the tax
	17001	+	15 is required or authorized by this Act.
	17002	+	16 On and after December 1, 1985, a discount equal to 1.75% of
	17003	+	17 the amount of the tax payable under this Act up to and
	17004	+	18 including the first $3,000,000 paid hereunder by such
	17005	+	19 distributor to the Department during any such year and 1.5% of
	17006	+	20 the amount of any additional tax paid hereunder by such
	17007	+	21 distributor to the Department during any such year shall
	17008	+	22 apply.
	17009	+	23 Two or more distributors that use a common means of
	17010	+	24 affixing revenue tax stamps or that are owned or controlled by
	17011	+	25 the same interests shall be treated as a single distributor
	17012	+	26 for the purpose of computing the discount.
	17013	+
	17014	+
	17015	+
	17016	+
	17017	+
	17018	+	SB1963 Enrolled - 472 - LRB103 25648 HLH 51997 b
	17019	+
	17020	+
	17021	+	SB1963 Enrolled- 473 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 473 - LRB103 25648 HLH 51997 b
	17022	+	SB1963 Enrolled - 473 - LRB103 25648 HLH 51997 b
	17023	+	1 (m) The taxes herein imposed are in addition to all other
	17024	+	2 occupation or privilege taxes imposed by the State of
	17025	+	3 Illinois, or by any political subdivision thereof, or by any
	17026	+	4 municipal corporation.
	17027	+	5 (Source: P.A. 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19;
	17028	+	6 101-604, eff. 12-13-19.)
	17029	+	7 ARTICLE 85. USE AND OCCUPATION TAXES
	17030	+	8 Section 85-5. The Use Tax Act is amended by changing
	17031	+	9 Section 12 as follows:
	17032	+	10 (35 ILCS 105/12) (from Ch. 120, par. 439.12)
	17033	+	11 Sec. 12. Applicability of Retailers' Occupation Tax Act
	17034	+	12 and Uniform Penalty and Interest Act. All of the provisions of
	17035	+	13 Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12,
	17036	+	14 2-54, 2a, 2b, 2c, 3, 4 (except that the time limitation
	17037	+	15 provisions shall run from the date when the tax is due rather
	17038	+	16 than from the date when gross receipts are received), 5
	17039	+	17 (except that the time limitation provisions on the issuance of
	17040	+	18 notices of tax liability shall run from the date when the tax
	17041	+	19 is due rather than from the date when gross receipts are
	17042	+	20 received and except that in the case of a failure to file a
	17043	+	21 return required by this Act, no notice of tax liability shall
	17044	+	22 be issued on and after each July 1 and January 1 covering tax
	17045	+	23 due with that return during any month or period more than 6
	17046	+
	17047	+
	17048	+
	17049	+
	17050	+
	17051	+	SB1963 Enrolled - 473 - LRB103 25648 HLH 51997 b
	17052	+
	17053	+
	17054	+	SB1963 Enrolled- 474 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 474 - LRB103 25648 HLH 51997 b
	17055	+	SB1963 Enrolled - 474 - LRB103 25648 HLH 51997 b
	17056	+	1 years before that July 1 or January 1, respectively), 5a, 5b,
	17057	+	2 5c, 5d, 5e, 5f, 5g, 5h, 5j, 5k, 5l, 5m, 5n, 7, 8, 9, 10, 11 and
	17058	+	3 12 of the Retailers' Occupation Tax Act and Section 3-7 of the
	17059	+	4 Uniform Penalty and Interest Act, which are not inconsistent
	17060	+	5 with this Act, shall apply, as far as practicable, to the
	17061	+	6 subject matter of this Act to the same extent as if such
	17062	+	7 provisions were included herein.
	17063	+	8 (Source: P.A. 102-700, eff. 4-19-22.)
	17064	+	9 Section 85-10. The Service Use Tax Act is amended by
	17065	+	10 changing Section 12 as follows:
	17066	+	11 (35 ILCS 110/12) (from Ch. 120, par. 439.42)
	17067	+	12 Sec. 12. Applicability of Retailers' Occupation Tax Act
	17068	+	13 and Uniform Penalty and Interest Act. All of the provisions of
	17069	+	14 Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12,
	17070	+	15 2-54, 2a, 2b, 2c, 3 (except as to the disposition by the
	17071	+	16 Department of the money collected under this Act), 4 (except
	17072	+	17 that the time limitation provisions shall run from the date
	17073	+	18 when gross receipts are received), 5 (except that the time
	17074	+	19 limitation provisions on the issuance of notices of tax
	17075	+	20 liability shall run from the date when the tax is due rather
	17076	+	21 than from the date when gross receipts are received and except
	17077	+	22 that in the case of a failure to file a return required by this
	17078	+	23 Act, no notice of tax liability shall be issued on and after
	17079	+	24 July 1 and January 1 covering tax due with that return during
	17080	+
	17081	+
	17082	+
	17083	+
	17084	+
	17085	+	SB1963 Enrolled - 474 - LRB103 25648 HLH 51997 b
	17086	+
	17087	+
	17088	+	SB1963 Enrolled- 475 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 475 - LRB103 25648 HLH 51997 b
	17089	+	SB1963 Enrolled - 475 - LRB103 25648 HLH 51997 b
	17090	+	1 any month or period more than 6 years before that July 1 or
	17091	+	2 January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k,
	17092	+	3 5l, 5m, 5n, 6d, 7, 8, 9, 10, 11 and 12 of the Retailers'
	17093	+	4 Occupation Tax Act which are not inconsistent with this Act,
	17094	+	5 and Section 3-7 of the Uniform Penalty and Interest Act, shall
	17095	+	6 apply, as far as practicable, to the subject matter of this Act
	17096	+	7 to the same extent as if such provisions were included herein.
	17097	+	8 (Source: P.A. 102-700, eff. 4-19-22.)
	17098	+	9 Section 85-15. The Service Occupation Tax Act is amended
	17099	+	10 by changing Section 12 as follows:
	17100	+	11 (35 ILCS 115/12) (from Ch. 120, par. 439.112)
	17101	+	12 Sec. 12. All of the provisions of Sections 1d, 1e, 1f, 1i,
	17102	+	13 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12, 2-54, 2a, 2b, 2c, 3
	17103	+	14 (except as to the disposition by the Department of the tax
	17104	+	15 collected under this Act), 4 (except that the time limitation
	17105	+	16 provisions shall run from the date when the tax is due rather
	17106	+	17 than from the date when gross receipts are received), 5
	17107	+	18 (except that the time limitation provisions on the issuance of
	17108	+	19 notices of tax liability shall run from the date when the tax
	17109	+	20 is due rather than from the date when gross receipts are
	17110	+	21 received), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k, 5l, 5m, 5n, 6d,
	17111	+	22 7, 8, 9, 10, 11 and 12 of the "Retailers' Occupation Tax Act"
	17112	+	23 which are not inconsistent with this Act, and Section 3-7 of
	17113	+	24 the Uniform Penalty and Interest Act shall apply, as far as
	17114	+
	17115	+
	17116	+
	17117	+
	17118	+
	17119	+	SB1963 Enrolled - 475 - LRB103 25648 HLH 51997 b
	17120	+
	17121	+
	17122	+	SB1963 Enrolled- 476 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 476 - LRB103 25648 HLH 51997 b
	17123	+	SB1963 Enrolled - 476 - LRB103 25648 HLH 51997 b
	17124	+	1 practicable, to the subject matter of this Act to the same
	17125	+	2 extent as if such provisions were included herein.
	17126	+	3 (Source: P.A. 102-700, eff. 4-19-22.)
	17127	+	4 ARTICLE 90. MUNICIPAL USE AND OCCUPATION TAXES
	17128	+	5 Section 90-5. The Illinois Municipal Code is amended by
	17129	+	6 changing Sections 8-11-1.4 and 8-11-1.5 as follows:
	17130	+	7 (65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
	17131	+	8 Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
	17132	+	9 Tax Act. The corporate authorities of a non-home rule
	17133	+	10 municipality may impose a tax upon all persons engaged, in
	17134	+	11 such municipality, in the business of making sales of service
	17135	+	12 for expenditure on public infrastructure or for property tax
	17136	+	13 relief or both as defined in Section 8-11-1.2 if approved by
	17137	+	14 referendum as provided in Section 8-11-1.1, of the selling
	17138	+	15 price of all tangible personal property transferred by such
	17139	+	16 servicemen either in the form of tangible personal property or
	17140	+	17 in the form of real estate as an incident to a sale of service.
	17141	+	18 If the tax is approved by referendum on or after July 14, 2010
	17142	+	19 (the effective date of Public Act 96-1057), the corporate
	17143	+	20 authorities of a non-home rule municipality may, until
	17144	+	21 December 31, 2030 December 31, 2020, use the proceeds of the
	17145	+	22 tax for expenditure on municipal operations, in addition to or
	17146	+	23 in lieu of any expenditure on public infrastructure or for
	17147	+
	17148	+
	17149	+
	17150	+
	17151	+
	17152	+	SB1963 Enrolled - 476 - LRB103 25648 HLH 51997 b
	17153	+
	17154	+
	17155	+	SB1963 Enrolled- 477 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 477 - LRB103 25648 HLH 51997 b
	17156	+	SB1963 Enrolled - 477 - LRB103 25648 HLH 51997 b
	17157	+	1 property tax relief. The tax imposed may not be more than 1%
	17158	+	2 and may be imposed only in 1/4% increments. The tax may not be
	17159	+	3 imposed on tangible personal property taxed at the 1% rate
	17160	+	4 under the Service Occupation Tax Act (or at the 0% rate imposed
	17161	+	5 under this amendatory Act of the 102nd General Assembly).
	17162	+	6 Beginning December 1, 2019, this tax is not imposed on sales of
	17163	+	7 aviation fuel unless the tax revenue is expended for
	17164	+	8 airport-related purposes. If a municipality does not have an
	17165	+	9 airport-related purpose to which it dedicates aviation fuel
	17166	+	10 tax revenue, then aviation fuel is excluded from the tax. Each
	17167	+	11 municipality must comply with the certification requirements
	17168	+	12 for airport-related purposes under Section 2-22 of the
	17169	+	13 Retailers' Occupation Tax Act. For purposes of this Section,
	17170	+	14 "airport-related purposes" has the meaning ascribed in Section
	17171	+	15 6z-20.2 of the State Finance Act. This exclusion for aviation
	17172	+	16 fuel only applies for so long as the revenue use requirements
	17173	+	17 of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
	17174	+	18 municipality. The tax imposed by a municipality pursuant to
	17175	+	19 this Section and all civil penalties that may be assessed as an
	17176	+	20 incident thereof shall be collected and enforced by the State
	17177	+	21 Department of Revenue. The certificate of registration which
	17178	+	22 is issued by the Department to a retailer under the Retailers'
	17179	+	23 Occupation Tax Act or under the Service Occupation Tax Act
	17180	+	24 shall permit such registrant to engage in a business which is
	17181	+	25 taxable under any ordinance or resolution enacted pursuant to
	17182	+	26 this Section without registering separately with the
	17183	+
	17184	+
	17185	+
	17186	+
	17187	+
	17188	+	SB1963 Enrolled - 477 - LRB103 25648 HLH 51997 b
	17189	+
	17190	+
	17191	+	SB1963 Enrolled- 478 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 478 - LRB103 25648 HLH 51997 b
	17192	+	SB1963 Enrolled - 478 - LRB103 25648 HLH 51997 b
	17193	+	1 Department under such ordinance or resolution or under this
	17194	+	2 Section. The Department shall have full power to administer
	17195	+	3 and enforce this Section; to collect all taxes and penalties
	17196	+	4 due hereunder; to dispose of taxes and penalties so collected
	17197	+	5 in the manner hereinafter provided, and to determine all
	17198	+	6 rights to credit memoranda arising on account of the erroneous
	17199	+	7 payment of tax or penalty hereunder. In the administration of,
	17200	+	8 and compliance with, this Section the Department and persons
	17201	+	9 who are subject to this Section shall have the same rights,
	17202	+	10 remedies, privileges, immunities, powers and duties, and be
	17203	+	11 subject to the same conditions, restrictions, limitations,
	17204	+	12 penalties and definitions of terms, and employ the same modes
	17205	+	13 of procedure, as are prescribed in Sections 1a-1, 2, 2a, 3
	17206	+	14 through 3-50 (in respect to all provisions therein other than
	17207	+	15 the State rate of tax), 4 (except that the reference to the
	17208	+	16 State shall be to the taxing municipality), 5, 7, 8 (except
	17209	+	17 that the jurisdiction to which the tax shall be a debt to the
	17210	+	18 extent indicated in that Section 8 shall be the taxing
	17211	+	19 municipality), 9 (except as to the disposition of taxes and
	17212	+	20 penalties collected, and except that the returned merchandise
	17213	+	21 credit for this municipal tax may not be taken against any
	17214	+	22 State tax, and except that the retailer's discount is not
	17215	+	23 allowed for taxes paid on aviation fuel that are subject to the
	17216	+	24 revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
	17217	+	25 47133), 10, 11, 12 (except the reference therein to Section 2b
	17218	+	26 of the Retailers' Occupation Tax Act), 13 (except that any
	17219	+
	17220	+
	17221	+
	17222	+
	17223	+
	17224	+	SB1963 Enrolled - 478 - LRB103 25648 HLH 51997 b
	17225	+
	17226	+
	17227	+	SB1963 Enrolled- 479 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 479 - LRB103 25648 HLH 51997 b
	17228	+	SB1963 Enrolled - 479 - LRB103 25648 HLH 51997 b
	17229	+	1 reference to the State shall mean the taxing municipality),
	17230	+	2 the first paragraph of Section 15, 16, 17, 18, 19 and 20 of the
	17231	+	3 Service Occupation Tax Act and Section 3-7 of the Uniform
	17232	+	4 Penalty and Interest Act, as fully as if those provisions were
	17233	+	5 set forth herein.
	17234	+	6 No municipality may impose a tax under this Section unless
	17235	+	7 the municipality also imposes a tax at the same rate under
	17236	+	8 Section 8-11-1.3 of this Code.
	17237	+	9 Persons subject to any tax imposed pursuant to the
	17238	+	10 authority granted in this Section may reimburse themselves for
	17239	+	11 their serviceman's tax liability hereunder by separately
	17240	+	12 stating such tax as an additional charge, which charge may be
	17241	+	13 stated in combination, in a single amount, with State tax
	17242	+	14 which servicemen are authorized to collect under the Service
	17243	+	15 Use Tax Act, pursuant to such bracket schedules as the
	17244	+	16 Department may prescribe.
	17245	+	17 Whenever the Department determines that a refund should be
	17246	+	18 made under this Section to a claimant instead of issuing
	17247	+	19 credit memorandum, the Department shall notify the State
	17248	+	20 Comptroller, who shall cause the order to be drawn for the
	17249	+	21 amount specified, and to the person named, in such
	17250	+	22 notification from the Department. Such refund shall be paid by
	17251	+	23 the State Treasurer out of the municipal retailers' occupation
	17252	+	24 tax fund or the Local Government Aviation Trust Fund, as
	17253	+	25 appropriate.
	17254	+	26 Except as otherwise provided in this paragraph, the
	17255	+
	17256	+
	17257	+
	17258	+
	17259	+
	17260	+	SB1963 Enrolled - 479 - LRB103 25648 HLH 51997 b
	17261	+
	17262	+
	17263	+	SB1963 Enrolled- 480 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 480 - LRB103 25648 HLH 51997 b
	17264	+	SB1963 Enrolled - 480 - LRB103 25648 HLH 51997 b
	17265	+	1 Department shall forthwith pay over to the State Treasurer, ex
	17266	+	2 officio, as trustee, all taxes and penalties collected
	17267	+	3 hereunder for deposit into the municipal retailers' occupation
	17268	+	4 tax fund. Taxes and penalties collected on aviation fuel sold
	17269	+	5 on or after December 1, 2019, shall be immediately paid over by
	17270	+	6 the Department to the State Treasurer, ex officio, as trustee,
	17271	+	7 for deposit into the Local Government Aviation Trust Fund. The
	17272	+	8 Department shall only pay moneys into the Local Government
	17273	+	9 Aviation Trust Fund under this Section for so long as the
	17274	+	10 revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
	17275	+	11 47133 are binding on the municipality.
	17276	+	12 As soon as possible after the first day of each month,
	17277	+	13 beginning January 1, 2011, upon certification of the
	17278	+	14 Department of Revenue, the Comptroller shall order
	17279	+	15 transferred, and the Treasurer shall transfer, to the STAR
	17280	+	16 Bonds Revenue Fund the local sales tax increment, as defined
	17281	+	17 in the Innovation Development and Economy Act, collected under
	17282	+	18 this Section during the second preceding calendar month for
	17283	+	19 sales within a STAR bond district.
	17284	+	20 After the monthly transfer to the STAR Bonds Revenue Fund,
	17285	+	21 on or before the 25th day of each calendar month, the
	17286	+	22 Department shall prepare and certify to the Comptroller the
	17287	+	23 disbursement of stated sums of money to named municipalities,
	17288	+	24 the municipalities to be those from which suppliers and
	17289	+	25 servicemen have paid taxes or penalties hereunder to the
	17290	+	26 Department during the second preceding calendar month. The
	17291	+
	17292	+
	17293	+
	17294	+
	17295	+
	17296	+	SB1963 Enrolled - 480 - LRB103 25648 HLH 51997 b
	17297	+
	17298	+
	17299	+	SB1963 Enrolled- 481 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 481 - LRB103 25648 HLH 51997 b
	17300	+	SB1963 Enrolled - 481 - LRB103 25648 HLH 51997 b
	17301	+	1 amount to be paid to each municipality shall be the amount (not
	17302	+	2 including credit memoranda and not including taxes and
	17303	+	3 penalties collected on aviation fuel sold on or after December
	17304	+	4 1, 2019) collected hereunder during the second preceding
	17305	+	5 calendar month by the Department, and not including an amount
	17306	+	6 equal to the amount of refunds made during the second
	17307	+	7 preceding calendar month by the Department on behalf of such
	17308	+	8 municipality, and not including any amounts that are
	17309	+	9 transferred to the STAR Bonds Revenue Fund, less 1.5% of the
	17310	+	10 remainder, which the Department shall transfer into the Tax
	17311	+	11 Compliance and Administration Fund. The Department, at the
	17312	+	12 time of each monthly disbursement to the municipalities, shall
	17313	+	13 prepare and certify to the State Comptroller the amount to be
	17314	+	14 transferred into the Tax Compliance and Administration Fund
	17315	+	15 under this Section. Within 10 days after receipt, by the
	17316	+	16 Comptroller, of the disbursement certification to the
	17317	+	17 municipalities, the General Revenue Fund, and the Tax
	17318	+	18 Compliance and Administration Fund provided for in this
	17319	+	19 Section to be given to the Comptroller by the Department, the
	17320	+	20 Comptroller shall cause the orders to be drawn for the
	17321	+	21 respective amounts in accordance with the directions contained
	17322	+	22 in such certification.
	17323	+	23 The Department of Revenue shall implement Public Act
	17324	+	24 91-649 so as to collect the tax on and after January 1, 2002.
	17325	+	25 Nothing in this Section shall be construed to authorize a
	17326	+	26 municipality to impose a tax upon the privilege of engaging in
	17327	+
	17328	+
	17329	+
	17330	+
	17331	+
	17332	+	SB1963 Enrolled - 481 - LRB103 25648 HLH 51997 b
	17333	+
	17334	+
	17335	+	SB1963 Enrolled- 482 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 482 - LRB103 25648 HLH 51997 b
	17336	+	SB1963 Enrolled - 482 - LRB103 25648 HLH 51997 b
	17337	+	1 any business which under the constitution of the United States
	17338	+	2 may not be made the subject of taxation by this State.
	17339	+	3 As used in this Section, "municipal" or "municipality"
	17340	+	4 means or refers to a city, village or incorporated town,
	17341	+	5 including an incorporated town which has superseded a civil
	17342	+	6 township.
	17343	+	7 This Section shall be known and may be cited as the
	17344	+	8 "Non-Home Rule Municipal Service Occupation Tax Act".
	17345	+	9 (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
	17346	+	10 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
	17347	+	11 (65 ILCS 5/8-11-1.5) (from Ch. 24, par. 8-11-1.5)
	17348	+	12 Sec. 8-11-1.5. Non-Home Rule Municipal Use Tax Act. The
	17349	+	13 corporate authorities of a non-home rule municipality may
	17350	+	14 impose a tax upon the privilege of using, in such
	17351	+	15 municipality, any item of tangible personal property which is
	17352	+	16 purchased at retail from a retailer, and which is titled or
	17353	+	17 registered with an agency of this State's government, based on
	17354	+	18 the selling price of such tangible personal property, as
	17355	+	19 "selling price" is defined in the Use Tax Act, for expenditure
	17356	+	20 on public infrastructure or for property tax relief or both as
	17357	+	21 defined in Section 8-11-1.2, if approved by referendum as
	17358	+	22 provided in Section 8-11-1.1. If the tax is approved by
	17359	+	23 referendum on or after the effective date of this amendatory
	17360	+	24 Act of the 96th General Assembly, the corporate authorities of
	17361	+	25 a non-home rule municipality may, until December 31, 2030
	17362	+
	17363	+
	17364	+
	17365	+
	17366	+
	17367	+	SB1963 Enrolled - 482 - LRB103 25648 HLH 51997 b
	17368	+
	17369	+
	17370	+	SB1963 Enrolled- 483 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 483 - LRB103 25648 HLH 51997 b
	17371	+	SB1963 Enrolled - 483 - LRB103 25648 HLH 51997 b
	17372	+	1 December 31, 2020, use the proceeds of the tax for expenditure
	17373	+	2 on municipal operations, in addition to or in lieu of any
	17374	+	3 expenditure on public infrastructure or for property tax
	17375	+	4 relief. The tax imposed may not be more than 1% and may be
	17376	+	5 imposed only in 1/4% increments. Such tax shall be collected
	17377	+	6 from persons whose Illinois address for title or registration
	17378	+	7 purposes is given as being in such municipality. Such tax
	17379	+	8 shall be collected by the municipality imposing such tax. A
	17380	+	9 non-home rule municipality may not impose and collect the tax
	17381	+	10 prior to January 1, 2002.
	17382	+	11 This Section shall be known and may be cited as the
	17383	+	12 "Non-Home Rule Municipal Use Tax Act".
	17384	+	13 (Source: P.A. 96-1057, eff. 7-14-10; 97-837, eff. 7-20-12.)
	17385	+	14 ARTICLE 95. VOLUNTEER EMERGENCY WORKERS
	17386	+	15 Section 95-5. The Illinois Administrative Procedure Act is
	17387	+	16 amended by adding Section 5-45.36 as follows:
	17388	+	17 (5 ILCS 100/5-45.36 new)
	17389	+	18 Sec. 5-45.36. Emergency rulemaking. To provide for the
	17390	+	19 expeditious and timely implementation of Section 234 of the
	17391	+	20 Illinois Income Tax Act, emergency rules implementing that
	17392	+	21 Section may be adopted in accordance with Section 5-45 by the
	17393	+	22 Department of Revenue. The adoption of emergency rules
	17394	+	23 authorized by Section 5-45 and this Section is deemed to be
	17395	+
	17396	+
	17397	+
	17398	+
	17399	+
	17400	+	SB1963 Enrolled - 483 - LRB103 25648 HLH 51997 b
	17401	+
	17402	+
	17403	+	SB1963 Enrolled- 484 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 484 - LRB103 25648 HLH 51997 b
	17404	+	SB1963 Enrolled - 484 - LRB103 25648 HLH 51997 b
	17405	+	1 necessary for the public interest, safety, and welfare.
	17406	+	2 This Section is repealed one year after the effective date
	17407	+	3 of this amendatory Act of the 103rd General Assembly.
	17408	+	4 Section 95-10. The Illinois Income Tax Act is amended by
	17409	+	5 adding Section 234 as follows:
	17410	+	6 (35 ILCS 5/234 new)
	17411	+	7 Sec. 234. Volunteer emergency workers.
	17412	+	8 (a) For taxable years beginning on or after January 1,
	17413	+	9 2023 and beginning prior to January 1, 2028, each individual
	17414	+	10 who (i) serves as a volunteer emergency worker for at least 9
	17415	+	11 months during the taxable year and (ii) does not receive
	17416	+	12 compensation for his or her services as a volunteer emergency
	17417	+	13 worker of more than $5,000 for the taxable year may apply to
	17418	+	14 the Department for a credit against the taxes imposed by
	17419	+	15 subsections (a) and (b) of Section 201. The amount of the
	17420	+	16 credit shall be $500 per eligible individual. The aggregate
	17421	+	17 amount of all tax credits awarded by the Department under this
	17422	+	18 Section in any calendar year may not exceed $5,000,000.
	17423	+	19 Credits shall be awarded on a first-come first-served basis.
	17424	+	20 (b) A credit under this Section may not reduce a
	17425	+	21 taxpayer's liability to less than zero.
	17426	+	22 (c) By January 24 of each year, the Office of the State
	17427	+	23 Fire Marshal shall provide the Department of Revenue an
	17428	+	24 electronic file with the names of volunteer emergency workers
	17429	+
	17430	+
	17431	+
	17432	+
	17433	+
	17434	+	SB1963 Enrolled - 484 - LRB103 25648 HLH 51997 b
	17435	+
	17436	+
	17437	+	SB1963 Enrolled- 485 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 485 - LRB103 25648 HLH 51997 b
	17438	+	SB1963 Enrolled - 485 - LRB103 25648 HLH 51997 b
	17439	+	1 who (i) volunteered for at least 9 months during the
	17440	+	2 immediately preceding calendar year, (ii) did not receive
	17441	+	3 compensation for their services as a volunteer emergency
	17442	+	4 worker of more than $5,000 during the immediately preceding
	17443	+	5 calendar year, and (iii) are registered with the Office of the
	17444	+	6 State Fire Marshal as of January 12 of the current year as
	17445	+	7 meeting the requirements of items (i) and (ii) for the
	17446	+	8 immediately preceding calendar year. The chief of the fire
	17447	+	9 department, fire protection district, or fire protection
	17448	+	10 association shall be responsible for notifying the State Fire
	17449	+	11 Marshal of the volunteer emergency workers who met the
	17450	+	12 requirements of items (i) and (ii) during the immediately
	17451	+	13 preceding calendar year by January 12 of the current year.
	17452	+	14 Notification shall be required in the format required by the
	17453	+	15 State Fire Marshal. The chief of the fire department, fire
	17454	+	16 protection district, or fire protection association shall be
	17455	+	17 responsible for the verification and accuracy of their
	17456	+	18 submission to the State Fire Marshal under this subsection.
	17457	+	19 (d) As used in this Section, "volunteer emergency worker"
	17458	+	20 means a person who serves as a member, other than on a
	17459	+	21 full-time career basis, of a fire department, fire protection
	17460	+	22 district, or fire protection association that has a Fire
	17461	+	23 Department Identification Number issued by the Office of the
	17462	+	24 State Fire Marshal and who does not serve as a member on a
	17463	+	25 full-time career basis for another fire department, fire
	17464	+	26 protection district, fire protection association, or
	17465	+
	17466	+
	17467	+
	17468	+
	17469	+
	17470	+	SB1963 Enrolled - 485 - LRB103 25648 HLH 51997 b
	17471	+
	17472	+
	17473	+	SB1963 Enrolled- 486 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 486 - LRB103 25648 HLH 51997 b
	17474	+	SB1963 Enrolled - 486 - LRB103 25648 HLH 51997 b
	17475	+	1 governmental entity.
	17476	+	2 (e) The Department shall adopt rules to implement and
	17477	+	3 administer this Section, including rules concerning
	17478	+	4 applications for the tax credit.
	17479	+	5 ARTICLE 100. USE AND OCCUPATION TAX ASSESSMENTS
	17480	+	6 Section 100-5. The Retailers' Occupation Tax Act is
	17481	+	7 amended by changing Section 4 as follows:
	17482	+	8 (35 ILCS 120/4) (from Ch. 120, par. 443)
	17483	+	9 Sec. 4. As soon as practicable after any return is filed,
	17484	+	10 the Department shall examine such return and shall, if
	17485	+	11 necessary, correct such return according to its best judgment
	17486	+	12 and information. If the correction of a return results in an
	17487	+	13 amount of tax that is understated on the taxpayer's return due
	17488	+	14 to a mathematical error, the Department shall notify the
	17489	+	15 taxpayer that the amount of tax in excess of that shown on the
	17490	+	16 return is due and has been assessed. The term "mathematical
	17491	+	17 error" means arithmetic errors or incorrect computations on
	17492	+	18 the return or supporting schedules. No such notice of
	17493	+	19 additional tax due shall be issued on and after each July 1 and
	17494	+	20 January 1 covering gross receipts received during any month or
	17495	+	21 period of time more than 3 years prior to such July 1 and
	17496	+	22 January 1, respectively. Such notice of additional tax due
	17497	+	23 shall not be considered a notice of tax liability nor shall the
	17498	+
	17499	+
	17500	+
	17501	+
	17502	+
	17503	+	SB1963 Enrolled - 486 - LRB103 25648 HLH 51997 b
	17504	+
	17505	+
	17506	+	SB1963 Enrolled- 487 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 487 - LRB103 25648 HLH 51997 b
	17507	+	SB1963 Enrolled - 487 - LRB103 25648 HLH 51997 b
	17508	+	1 taxpayer have any right of protest. In the event that the
	17509	+	2 return is corrected for any reason other than a mathematical
	17510	+	3 error, any return so corrected by the Department shall be
	17511	+	4 prima facie correct and shall be prima facie evidence of the
	17512	+	5 correctness of the amount of tax due, as shown therein. In
	17513	+	6 correcting transaction by transaction reporting returns
	17514	+	7 provided for in Section 3 of this Act, it shall be permissible
	17515	+	8 for the Department to show a single corrected return figure
	17516	+	9 for any given period of a calendar month instead of having to
	17517	+	10 correct each transaction by transaction return form
	17518	+	11 individually and having to show a corrected return figure for
	17519	+	12 each of such transaction by transaction return forms. In
	17520	+	13 making a correction of transaction by transaction, monthly or
	17521	+	14 quarterly returns covering a period of 6 months or more, it
	17522	+	15 shall be permissible for the Department to show a single
	17523	+	16 corrected return figure for any given 6-month period.
	17524	+	17 Instead of requiring the person filing such return to file
	17525	+	18 an amended return, the Department may simply notify him of the
	17526	+	19 correction or corrections it has made.
	17527	+	20 Proof of such correction by the Department may be made at
	17528	+	21 any hearing before the Department or the Illinois Independent
	17529	+	22 Tax Tribunal or in any legal proceeding by a reproduced copy or
	17530	+	23 computer print-out of the Department's record relating thereto
	17531	+	24 in the name of the Department under the certificate of the
	17532	+	25 Director of Revenue. If reproduced copies of the Department's
	17533	+	26 records are offered as proof of such correction, the Director
	17534	+
	17535	+
	17536	+
	17537	+
	17538	+
	17539	+	SB1963 Enrolled - 487 - LRB103 25648 HLH 51997 b
	17540	+
	17541	+
	17542	+	SB1963 Enrolled- 488 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 488 - LRB103 25648 HLH 51997 b
	17543	+	SB1963 Enrolled - 488 - LRB103 25648 HLH 51997 b
	17544	+	1 must certify that those copies are true and exact copies of
	17545	+	2 records on file with the Department. If computer print-outs of
	17546	+	3 the Department's records are offered as proof of such
	17547	+	4 correction, the Director must certify that those computer
	17548	+	5 print-outs are true and exact representations of records
	17549	+	6 properly entered into standard electronic computing equipment,
	17550	+	7 in the regular course of the Department's business, at or
	17551	+	8 reasonably near the time of the occurrence of the facts
	17552	+	9 recorded, from trustworthy and reliable information. Such
	17553	+	10 certified reproduced copy or certified computer print-out
	17554	+	11 shall without further proof, be admitted into evidence before
	17555	+	12 the Department or in any legal proceeding and shall be prima
	17556	+	13 facie proof of the correctness of the amount of tax due, as
	17557	+	14 shown therein.
	17558	+	15 If the tax computed upon the basis of the gross receipts as
	17559	+	16 fixed by the Department is greater than the amount of tax due
	17560	+	17 under the return or returns as filed, the Department shall (or
	17561	+	18 if the tax or any part thereof that is admitted to be due by a
	17562	+	19 return or returns, whether filed on time or not, is not paid,
	17563	+	20 the Department may) issue the taxpayer a notice of tax
	17564	+	21 liability for the amount of tax claimed by the Department to be
	17565	+	22 due, together with a penalty in an amount determined in
	17566	+	23 accordance with Section 3-3 of the Uniform Penalty and
	17567	+	24 Interest Act. Provided, that if the incorrectness of any
	17568	+	25 return or returns as determined by the Department is due to
	17569	+	26 negligence or fraud, said penalty shall be in an amount
	17570	+
	17571	+
	17572	+
	17573	+
	17574	+
	17575	+	SB1963 Enrolled - 488 - LRB103 25648 HLH 51997 b
	17576	+
	17577	+
	17578	+	SB1963 Enrolled- 489 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 489 - LRB103 25648 HLH 51997 b
	17579	+	SB1963 Enrolled - 489 - LRB103 25648 HLH 51997 b
	17580	+	1 determined in accordance with Section 3-5 or Section 3-6 of
	17581	+	2 the Uniform Penalty and Interest Act, as the case may be. If
	17582	+	3 the notice of tax liability is not based on a correction of the
	17583	+	4 taxpayer's return or returns, but is based on the taxpayer's
	17584	+	5 failure to pay all or a part of the tax admitted by his return
	17585	+	6 or returns (whether filed on time or not) to be due, such
	17586	+	7 notice of tax liability shall be prima facie correct and shall
	17587	+	8 be prima facie evidence of the correctness of the amount of tax
	17588	+	9 due, as shown therein.
	17589	+	10 Proof of such notice of tax liability by the Department
	17590	+	11 may be made at any hearing before the Department or the
	17591	+	12 Illinois Independent Tax Tribunal or in any legal proceeding
	17592	+	13 by a reproduced copy of the Department's record relating
	17593	+	14 thereto in the name of the Department under the certificate of
	17594	+	15 the Director of Revenue. Such reproduced copy shall without
	17595	+	16 further proof, be admitted into evidence before the Department
	17596	+	17 or in any legal proceeding and shall be prima facie proof of
	17597	+	18 the correctness of the amount of tax due, as shown therein.
	17598	+	19 If the person filing any return dies or becomes a person
	17599	+	20 under legal disability at any time before the Department
	17600	+	21 issues its notice of tax liability, such notice shall be
	17601	+	22 issued to the administrator, executor or other legal
	17602	+	23 representative, as such, of such person.
	17603	+	24 Except in case of a fraudulent return, or in the case of an
	17604	+	25 amended return (where a notice of tax liability may be issued
	17605	+	26 on or after each January 1 and July 1 for an amended return
	17606	+
	17607	+
	17608	+
	17609	+
	17610	+
	17611	+	SB1963 Enrolled - 489 - LRB103 25648 HLH 51997 b
	17612	+
	17613	+
	17614	+	SB1963 Enrolled- 490 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 490 - LRB103 25648 HLH 51997 b
	17615	+	SB1963 Enrolled - 490 - LRB103 25648 HLH 51997 b
	17616	+	1 filed not more than 3 years prior to such January 1 or July 1,
	17617	+	2 respectively), no notice of tax liability shall be issued on
	17618	+	3 and after each January 1 and July 1 covering gross receipts
	17619	+	4 received during any month or period of time more than 3 years
	17620	+	5 prior to such January 1 and July 1, respectively. If, before
	17621	+	6 the expiration of the time prescribed in this Section for the
	17622	+	7 issuance of a notice of tax liability, both the Department and
	17623	+	8 the taxpayer have consented in writing to its issuance after
	17624	+	9 such time, such notice may be issued at any time prior to the
	17625	+	10 expiration of the period agreed upon. The period so agreed
	17626	+	11 upon may be extended by subsequent agreements in writing made
	17627	+	12 before the expiration of the period previously agreed upon.
	17628	+	13 The foregoing limitations upon the issuance of a notice of tax
	17629	+	14 liability shall not apply to the issuance of a notice of tax
	17630	+	15 liability with respect to any period of time prior thereto in
	17631	+	16 cases where the Department has, within the period of
	17632	+	17 limitation then provided, notified the person making the
	17633	+	18 return of a notice of tax liability even though such return,
	17634	+	19 with which the tax that was shown by such return to be due was
	17635	+	20 paid when the return was filed, had not been corrected by the
	17636	+	21 Department in the manner required herein prior to the issuance
	17637	+	22 of such notice, but in no case shall the amount of any such
	17638	+	23 notice of tax liability for any period otherwise barred by
	17639	+	24 this Act exceed for such period the amount shown in the notice
	17640	+	25 of tax liability theretofore issued.
	17641	+	26 If, when a tax or penalty under this Act becomes due and
	17642	+
	17643	+
	17644	+
	17645	+
	17646	+
	17647	+	SB1963 Enrolled - 490 - LRB103 25648 HLH 51997 b
	17648	+
	17649	+
	17650	+	SB1963 Enrolled- 491 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 491 - LRB103 25648 HLH 51997 b
	17651	+	SB1963 Enrolled - 491 - LRB103 25648 HLH 51997 b
	17652	+	1 payable, the person alleged to be liable therefor is out of the
	17653	+	2 State, the notice of tax liability may be issued within the
	17654	+	3 times herein limited after his coming into or return to the
	17655	+	4 State; and if, after the tax or penalty under this Act becomes
	17656	+	5 due and payable, the person alleged to be liable therefor
	17657	+	6 departs from and remains out of the State, the time of his or
	17658	+	7 her absence is no part of the time limited for the issuance of
	17659	+	8 the notice of tax liability; but the foregoing provisions
	17660	+	9 concerning absence from the State shall not apply to any case
	17661	+	10 in which, at the time when a tax or penalty becomes due under
	17662	+	11 this Act, the person allegedly liable therefor is not a
	17663	+	12 resident of this State.
	17664	+	13 The time limitation period on the Department's right to
	17665	+	14 issue a notice of tax liability shall not run during any period
	17666	+	15 of time in which the Order of any Court has the effect of
	17667	+	16 enjoining or restraining the Department from issuing the
	17668	+	17 notice of tax liability.
	17669	+	18 If such person or legal representative shall within 60
	17670	+	19 days after such notice of tax liability file a protest to said
	17671	+	20 notice of tax liability with the Department and request a
	17672	+	21 hearing thereon, the Department shall give notice to such
	17673	+	22 person or legal representative of the time and place fixed for
	17674	+	23 such hearing and shall hold a hearing in conformity with the
	17675	+	24 provisions of this Act, and pursuant thereto shall issue to
	17676	+	25 such person or legal representative a final assessment for the
	17677	+	26 amount found to be due as a result of such hearing. On or after
	17678	+
	17679	+
	17680	+
	17681	+
	17682	+
	17683	+	SB1963 Enrolled - 491 - LRB103 25648 HLH 51997 b
	17684	+
	17685	+
	17686	+	SB1963 Enrolled- 492 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 492 - LRB103 25648 HLH 51997 b
	17687	+	SB1963 Enrolled - 492 - LRB103 25648 HLH 51997 b
	17688	+	1 July 1, 2013, protests concerning matters that are subject to
	17689	+	2 the jurisdiction of the Illinois Independent Tax Tribunal
	17690	+	3 shall be filed with the Illinois Independent Tax Tribunal in
	17691	+	4 accordance with the Illinois Independent Tax Tribunal Act of
	17692	+	5 2012, and hearings concerning those matters shall be held
	17693	+	6 before the Tribunal in accordance with that Act. The Tribunal
	17694	+	7 shall give notice to such person of the time and place fixed
	17695	+	8 for such hearing and shall hold a hearing. With respect to
	17696	+	9 protests filed with the Department prior to July 1, 2013 that
	17697	+	10 would otherwise be subject to the jurisdiction of the Illinois
	17698	+	11 Independent Tax Tribunal, the taxpayer may elect to be subject
	17699	+	12 to the provisions of the Illinois Independent Tax Tribunal Act
	17700	+	13 of 2012 at any time on or after July 1, 2013, but not later
	17701	+	14 than 30 days after the date on which the protest was filed. If
	17702	+	15 made, the election shall be irrevocable.
	17703	+	16 If a protest to the notice of tax liability and a request
	17704	+	17 for a hearing thereon is not filed within 60 days after such
	17705	+	18 notice, such notice of tax liability shall become final
	17706	+	19 without the necessity of a final assessment being issued and
	17707	+	20 shall be deemed to be a final assessment.
	17708	+	21 Notwithstanding any other provisions of this Act, any
	17709	+	22 amount paid as tax or in respect of tax paid under this Act,
	17710	+	23 other than amounts paid as quarter-monthly payments, shall be
	17711	+	24 deemed assessed upon the date of receipt of payment.
	17712	+	25 After the issuance of a final assessment, or a notice of
	17713	+	26 tax liability which becomes final without the necessity of
	17714	+
	17715	+
	17716	+
	17717	+
	17718	+
	17719	+	SB1963 Enrolled - 492 - LRB103 25648 HLH 51997 b
	17720	+
	17721	+
	17722	+	SB1963 Enrolled- 493 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 493 - LRB103 25648 HLH 51997 b
	17723	+	SB1963 Enrolled - 493 - LRB103 25648 HLH 51997 b
	17724	+	1 actually issuing a final assessment as hereinbefore provided,
	17725	+	2 the Department, at any time before such assessment is reduced
	17726	+	3 to judgment, may (subject to rules of the Department) grant a
	17727	+	4 rehearing (or grant departmental review and hold an original
	17728	+	5 hearing if no previous hearing in the matter has been held)
	17729	+	6 upon the application of the person aggrieved. Pursuant to such
	17730	+	7 hearing or rehearing, the Department shall issue a revised
	17731	+	8 final assessment to such person or his legal representative
	17732	+	9 for the amount found to be due as a result of such hearing or
	17733	+	10 rehearing.
	17734	+	11 (Source: P.A. 97-1129, eff. 8-28-12.)
	17735	+	12 Section 100-10. The Cigarette Machine Operators'
	17736	+	13 Occupation Tax Act is amended by changing Section 1-45 as
	17737	+	14 follows:
	17738	+	15 (35 ILCS 128/1-45)
	17739	+	16 Sec. 1-45. Examination and correction of returns.
	17740	+	17 (a) As soon as practicable after any return is filed, the
	17741	+	18 Department shall examine that return and shall correct the
	17742	+	19 return according to its best judgment and information, which
	17743	+	20 return so corrected by the Department shall be prima facie
	17744	+	21 correct and shall be prima facie evidence of the correctness
	17745	+	22 of the amount of tax due, as shown on the corrected return.
	17746	+	23 Instead of requiring the cigarette machine operator to file an
	17747	+	24 amended return, the Department may simply notify the cigarette
	17748	+
	17749	+
	17750	+
	17751	+
	17752	+
	17753	+	SB1963 Enrolled - 493 - LRB103 25648 HLH 51997 b
	17754	+
	17755	+
	17756	+	SB1963 Enrolled- 494 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 494 - LRB103 25648 HLH 51997 b
	17757	+	SB1963 Enrolled - 494 - LRB103 25648 HLH 51997 b
	17758	+	1 machine operator of the correction or corrections it has made.
	17759	+	2 Proof of the correction by the Department may be made at any
	17760	+	3 hearing before the Department or in any legal proceeding by a
	17761	+	4 reproduced copy of the Department's record relating thereto in
	17762	+	5 the name of the Department under the certificate of the
	17763	+	6 Director of Revenue. Such reproduced copy shall, without
	17764	+	7 further proof, be admitted into evidence before the Department
	17765	+	8 or in any legal proceeding and shall be prima facie proof of
	17766	+	9 the correctness of the amount of tax due, as shown on the
	17767	+	10 reproduced copy. If the Department finds that any amount of
	17768	+	11 tax is due from the cigarette machine operator, the Department
	17769	+	12 shall issue the cigarette machine operator a notice of tax
	17770	+	13 liability for the amount of tax claimed by the Department to be
	17771	+	14 due, together with a penalty in an amount determined in
	17772	+	15 accordance with Sections 3-3, 3-5 and 3-6 of the Uniform
	17773	+	16 Penalty and Interest Act. If, in administering the provisions
	17774	+	17 of this Act, comparison of a return or returns of a cigarette
	17775	+	18 machine operator with the books, records, and inventories of
	17776	+	19 such cigarette machine operator discloses a deficiency that
	17777	+	20 cannot be allocated by the Department to a particular month or
	17778	+	21 months, the Department shall issue the cigarette machine
	17779	+	22 operator a notice of tax liability for the amount of tax
	17780	+	23 claimed by the Department to be due for a given period, but
	17781	+	24 without any obligation upon the Department to allocate that
	17782	+	25 deficiency to any particular month or months, together with a
	17783	+	26 penalty in an amount determined in accordance with Sections
	17784	+
	17785	+
	17786	+
	17787	+
	17788	+
	17789	+	SB1963 Enrolled - 494 - LRB103 25648 HLH 51997 b
	17790	+
	17791	+
	17792	+	SB1963 Enrolled- 495 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 495 - LRB103 25648 HLH 51997 b
	17793	+	SB1963 Enrolled - 495 - LRB103 25648 HLH 51997 b
	17794	+	1 3-3, 3-5, and 3-6 of the Uniform Penalty and Interest Act,
	17795	+	2 under which circumstances the aforesaid notice of tax
	17796	+	3 liability shall be prima facie correct and shall be prima
	17797	+	4 facie evidence of the correctness of the amount of tax due, as
	17798	+	5 shown therein; and proof of such correctness may be made in
	17799	+	6 accordance with, and the admissibility of a reproduced copy of
	17800	+	7 such notice of tax liability shall be governed by, all the
	17801	+	8 provisions of this Act applicable to corrected returns. If any
	17802	+	9 cigarette machine operator filing any return dies or becomes a
	17803	+	10 person under legal disability at any time before the
	17804	+	11 Department issues its notice of tax liability, such notice
	17805	+	12 shall be issued to the administrator, executor, or other legal
	17806	+	13 representative of the cigarette machine operator.
	17807	+	14 (b) If, within 60 days after such notice of tax liability,
	17808	+	15 the cigarette machine operator or his or her legal
	17809	+	16 representative files a written protest to such notice of tax
	17810	+	17 liability and requests a hearing thereon, the Department shall
	17811	+	18 give notice to such cigarette machine operator or legal
	17812	+	19 representative of the time and place fixed for such hearing,
	17813	+	20 and shall hold a hearing in conformity with the provisions of
	17814	+	21 this Act, and pursuant thereto shall issue a final assessment
	17815	+	22 to such cigarette machine operator or legal representative for
	17816	+	23 the amount found to be due as a result of such hearing. If a
	17817	+	24 written protest to the notice of tax liability and a request
	17818	+	25 for a hearing thereon is not filed within 60 days after such
	17819	+	26 notice of tax liability, such notice of tax liability shall
	17820	+
	17821	+
	17822	+
	17823	+
	17824	+
	17825	+	SB1963 Enrolled - 495 - LRB103 25648 HLH 51997 b
	17826	+
	17827	+
	17828	+	SB1963 Enrolled- 496 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 496 - LRB103 25648 HLH 51997 b
	17829	+	SB1963 Enrolled - 496 - LRB103 25648 HLH 51997 b
	17830	+	1 become final without the necessity of a final assessment being
	17831	+	2 issued and shall be deemed to be a final assessment.
	17832	+	3 (c) In case of failure to pay the tax, or any portion
	17833	+	4 thereof, or any penalty provided for in this Act, when due, the
	17834	+	5 Department may bring suit to recover the amount of such tax, or
	17835	+	6 portion thereof, or penalty; or, if the taxpayer dies or
	17836	+	7 becomes incompetent, by filing claim therefore against his or
	17837	+	8 her estate; provided that no such action with respect to any
	17838	+	9 tax, or portion thereof, or penalty, shall be instituted more
	17839	+	10 than 2 years after the cause of action accrues, except with the
	17840	+	11 consent of the person from whom such tax or penalty is due.
	17841	+	12 After the expiration of the period within which the person
	17842	+	13 assessed may file an action for judicial review under the
	17843	+	14 Administrative Review Law without such an action being filed,
	17844	+	15 a certified copy of the final assessment or revised final
	17845	+	16 assessment of the Department may be filed with the circuit
	17846	+	17 court of the county in which the taxpayer has his or her
	17847	+	18 principal place of business, or of Sangamon County in those
	17848	+	19 cases in which the taxpayer does not have his or her principal
	17849	+	20 place of business in this State. The certified copy of the
	17850	+	21 final assessment or revised final assessment shall be
	17851	+	22 accompanied by a certification which recites facts that are
	17852	+	23 sufficient to show that the Department complied with the
	17853	+	24 jurisdictional requirements of the law in arriving at its
	17854	+	25 final assessment or its revised final assessment and that the
	17855	+	26 taxpayer had his or her opportunity for an administrative
	17856	+
	17857	+
	17858	+
	17859	+
	17860	+
	17861	+	SB1963 Enrolled - 496 - LRB103 25648 HLH 51997 b
	17862	+
	17863	+
	17864	+	SB1963 Enrolled- 497 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 497 - LRB103 25648 HLH 51997 b
	17865	+	SB1963 Enrolled - 497 - LRB103 25648 HLH 51997 b
	17866	+	1 hearing and for judicial review, whether he or she availed
	17867	+	2 himself or herself of either or both of these opportunities or
	17868	+	3 not. If the court is satisfied that the Department complied
	17869	+	4 with the jurisdictional requirements of the law in arriving at
	17870	+	5 its final assessment or its revised final assessment and that
	17871	+	6 the taxpayer had his or her opportunity for an administrative
	17872	+	7 hearing and for judicial review, whether he or she availed
	17873	+	8 himself or herself of either or both of these opportunities or
	17874	+	9 not, the court shall enter judgment in favor of the Department
	17875	+	10 and against the taxpayer for the amount shown to be due by the
	17876	+	11 final assessment or the revised final assessment, and such
	17877	+	12 judgment shall be filed of record in the court. Such judgment
	17878	+	13 shall bear the rate of interest set in the Uniform Penalty and
	17879	+	14 Interest Act, but otherwise shall have the same effect as
	17880	+	15 other judgments. The judgment may be enforced, and all laws
	17881	+	16 applicable to sales for the enforcement of a judgment shall be
	17882	+	17 applicable to sales made under such judgments. The Department
	17883	+	18 shall file the certified copy of its assessment, as herein
	17884	+	19 provided, with the circuit court within 2 years after such
	17885	+	20 assessment becomes final except when the taxpayer consents in
	17886	+	21 writing to an extension of such filing period.
	17887	+	22 If, when the cause of action for a proceeding in court
	17888	+	23 accrues against a person, he or she is out of the State, the
	17889	+	24 action may be commenced within the times herein limited, after
	17890	+	25 his or her coming into or returning to the State; and if, after
	17891	+	26 the cause of action accrues, he or she departs from and remains
	17892	+
	17893	+
	17894	+
	17895	+
	17896	+
	17897	+	SB1963 Enrolled - 497 - LRB103 25648 HLH 51997 b
	17898	+
	17899	+
	17900	+	SB1963 Enrolled- 498 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 498 - LRB103 25648 HLH 51997 b
	17901	+	SB1963 Enrolled - 498 - LRB103 25648 HLH 51997 b
	17902	+	1 out of the State, the time of his or her absence is no part of
	17903	+	2 the time limited for the commencement of the action; but the
	17904	+	3 foregoing provisions concerning absence from the State shall
	17905	+	4 not apply to any case in which, at the time the cause of action
	17906	+	5 accrues, the party against whom the cause of action accrues is
	17907	+	6 not a resident of this State. The time within which a court
	17908	+	7 action is to be commenced by the Department hereunder shall
	17909	+	8 not run while the taxpayer is a debtor in any proceeding under
	17910	+	9 the federal Bankruptcy Code nor thereafter until 90 days after
	17911	+	10 the Department is notified by such debtor of being discharged
	17912	+	11 in bankruptcy.
	17913	+	12 No claim shall be filed against the estate of any deceased
	17914	+	13 person or a person under legal disability for any tax or
	17915	+	14 penalty or part of either except in the manner prescribed and
	17916	+	15 within the time limited by the Probate Act of 1975.
	17917	+	16 The remedies provided for herein shall not be exclusive,
	17918	+	17 but all remedies available to creditors for the collection of
	17919	+	18 debts shall be available for the collection of any tax or
	17920	+	19 penalty due hereunder.
	17921	+	20 The collection of tax or penalty by any means provided for
	17922	+	21 herein shall not be a bar to any prosecution under this Act.
	17923	+	22 The certificate of the Director of the Department to the
	17924	+	23 effect that a tax or amount required to be paid by this Act has
	17925	+	24 not been paid, that a return has not been filed, or that
	17926	+	25 information has not been supplied pursuant to the provisions
	17927	+	26 of this Act, shall be prima facie evidence thereof.
	17928	+
	17929	+
	17930	+
	17931	+
	17932	+
	17933	+	SB1963 Enrolled - 498 - LRB103 25648 HLH 51997 b
	17934	+
	17935	+
	17936	+	SB1963 Enrolled- 499 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 499 - LRB103 25648 HLH 51997 b
	17937	+	SB1963 Enrolled - 499 - LRB103 25648 HLH 51997 b
	17938	+	1 Notwithstanding any other provisions of this Act, any
	17939	+	2 amount paid as tax or in respect of tax paid under this Act
	17940	+	3 shall be deemed assessed upon the date of receipt of payment.
	17941	+	4 All of the provisions of Sections 5a, 5b, 5c, 5d, 5e, 5f,
	17942	+	5 5g, 5i and 5j of the Retailers' Occupation Tax Act, which are
	17943	+	6 not inconsistent with this Act, shall apply, as far as
	17944	+	7 practicable, to the subject matter of this Act to the same
	17945	+	8 extent as if such provisions were included herein. References
	17946	+	9 in such incorporated Sections of the Retailers' Occupation Tax
	17947	+	10 Act to retailers, to sellers, or to persons engaged in the
	17948	+	11 business of selling tangible personal property shall mean
	17949	+	12 cigarette machine operator when used in this Act.
	17950	+	13 (Source: P.A. 97-688, eff. 6-14-12.)
	17951	+	14 Section 100-15. The Cigarette Tax Act is amended by
	17952	+	15 changing Section 9a as follows:
	17953	+	16 (35 ILCS 130/9a) (from Ch. 120, par. 453.9a)
	17954	+	17 Sec. 9a. Examination and correction of returns.
	17955	+	18 (1) As soon as practicable after any return is filed, the
	17956	+	19 Department shall examine such return and shall correct such
	17957	+	20 return according to its best judgment and information, which
	17958	+	21 return so corrected by the Department shall be prima facie
	17959	+	22 correct and shall be prima facie evidence of the correctness
	17960	+	23 of the amount of tax due, as shown therein. Instead of
	17961	+	24 requiring the distributor to file an amended return, the
	17962	+
	17963	+
	17964	+
	17965	+
	17966	+
	17967	+	SB1963 Enrolled - 499 - LRB103 25648 HLH 51997 b
	17968	+
	17969	+
	17970	+	SB1963 Enrolled- 500 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 500 - LRB103 25648 HLH 51997 b
	17971	+	SB1963 Enrolled - 500 - LRB103 25648 HLH 51997 b
	17972	+	1 Department may simply notify the distributor of the correction
	17973	+	2 or corrections it has made. Proof of such correction by the
	17974	+	3 Department may be made at any hearing before the Department or
	17975	+	4 in any legal proceeding by a reproduced copy of the
	17976	+	5 Department's record relating thereto in the name of the
	17977	+	6 Department under the certificate of the Director of Revenue.
	17978	+	7 Such reproduced copy shall, without further proof, be admitted
	17979	+	8 into evidence before the Department or in any legal proceeding
	17980	+	9 and shall be prima facie proof of the correctness of the amount
	17981	+	10 of tax due, as shown therein. If the Department finds that any
	17982	+	11 amount of tax is due from the distributor, the Department
	17983	+	12 shall issue the distributor a notice of tax liability for the
	17984	+	13 amount of tax claimed by the Department to be due, together
	17985	+	14 with a penalty in an amount determined in accordance with
	17986	+	15 Sections 3-3, 3-5 and 3-6 of the Uniform Penalty and Interest
	17987	+	16 Act. If, in administering the provisions of this Act,
	17988	+	17 comparison of a return or returns of a distributor with the
	17989	+	18 books, records and inventories of such distributor discloses a
	17990	+	19 deficiency which cannot be allocated by the Department to a
	17991	+	20 particular month or months, the Department shall issue the
	17992	+	21 distributor a notice of tax liability for the amount of tax
	17993	+	22 claimed by the Department to be due for a given period, but
	17994	+	23 without any obligation upon the Department to allocate such
	17995	+	24 deficiency to any particular month or months, together with a
	17996	+	25 penalty in an amount determined in accordance with Sections
	17997	+	26 3-3, 3-5 and 3-6 of the Uniform Penalty and Interest Act, under
	17998	+
	17999	+
	18000	+
	18001	+
	18002	+
	18003	+	SB1963 Enrolled - 500 - LRB103 25648 HLH 51997 b
	18004	+
	18005	+
	18006	+	SB1963 Enrolled- 501 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 501 - LRB103 25648 HLH 51997 b
	18007	+	SB1963 Enrolled - 501 - LRB103 25648 HLH 51997 b
	18008	+	1 which circumstances the aforesaid notice of tax liability
	18009	+	2 shall be prima facie correct and shall be prima facie evidence
	18010	+	3 of the correctness of the amount of tax due, as shown therein;
	18011	+	4 and proof of such correctness may be made in accordance with,
	18012	+	5 and the admissibility of a reproduced copy of such notice of
	18013	+	6 tax liability shall be governed by, all the provisions of this
	18014	+	7 Act applicable to corrected returns. If any distributor filing
	18015	+	8 any return dies or becomes a person under legal disability at
	18016	+	9 any time before the Department issues its notice of tax
	18017	+	10 liability, such notice shall be issued to the administrator,
	18018	+	11 executor or other legal representative, as such, of such
	18019	+	12 distributor.
	18020	+	13 (2) Except as otherwise provided in this Section, if,
	18021	+	14 within 60 days after such notice of tax liability, the
	18022	+	15 distributor or his or her legal representative files a protest
	18023	+	16 to such notice of tax liability and requests a hearing
	18024	+	17 thereon, the Department shall give notice to such distributor
	18025	+	18 or legal representative of the time and place fixed for such
	18026	+	19 hearing, and shall hold a hearing in conformity with the
	18027	+	20 provisions of this Act, and pursuant thereto shall issue a
	18028	+	21 final assessment to such distributor or legal representative
	18029	+	22 for the amount found to be due as a result of such hearing. On
	18030	+	23 or after July 1, 2013, protests concerning matters that are
	18031	+	24 subject to the jurisdiction of the Illinois Independent Tax
	18032	+	25 Tribunal shall be filed in accordance with the Illinois
	18033	+	26 Independent Tax Tribunal Act of 2012, and hearings concerning
	18034	+
	18035	+
	18036	+
	18037	+
	18038	+
	18039	+	SB1963 Enrolled - 501 - LRB103 25648 HLH 51997 b
	18040	+
	18041	+
	18042	+	SB1963 Enrolled- 502 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 502 - LRB103 25648 HLH 51997 b
	18043	+	SB1963 Enrolled - 502 - LRB103 25648 HLH 51997 b
	18044	+	1 those matters shall be held before the Tribunal in accordance
	18045	+	2 with that Act. With respect to protests filed with the
	18046	+	3 Department prior to July 1, 2013 that would otherwise be
	18047	+	4 subject to the jurisdiction of the Illinois Independent Tax
	18048	+	5 Tribunal, the taxpayer may elect to be subject to the
	18049	+	6 provisions of the Illinois Independent Tax Tribunal Act of
	18050	+	7 2012 at any time on or after July 1, 2013, but not later than
	18051	+	8 30 days after the date on which the protest was filed. If made,
	18052	+	9 the election shall be irrevocable. If a protest to the notice
	18053	+	10 of tax liability and a request for a hearing thereon is not
	18054	+	11 filed within the time allowed by law, such notice of tax
	18055	+	12 liability shall become final without the necessity of a final
	18056	+	13 assessment being issued and shall be deemed to be a final
	18057	+	14 assessment.
	18058	+	15 (3) In case of failure to pay the tax, or any portion
	18059	+	16 thereof, or any penalty provided for in this Act, when due, the
	18060	+	17 Department may bring suit to recover the amount of such tax, or
	18061	+	18 portion thereof, or penalty; or, if the taxpayer dies or
	18062	+	19 becomes incompetent, by filing claim therefor against his
	18063	+	20 estate; provided that no such action with respect to any tax,
	18064	+	21 or portion thereof, or penalty, shall be instituted more than
	18065	+	22 2 years after the cause of action accrues, except with the
	18066	+	23 consent of the person from whom such tax or penalty is due.
	18067	+	24 After the expiration of the period within which the person
	18068	+	25 assessed may file an action for judicial review under the
	18069	+	26 Administrative Review Law without such an action being filed,
	18070	+
	18071	+
	18072	+
	18073	+
	18074	+
	18075	+	SB1963 Enrolled - 502 - LRB103 25648 HLH 51997 b
	18076	+
	18077	+
	18078	+	SB1963 Enrolled- 503 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 503 - LRB103 25648 HLH 51997 b
	18079	+	SB1963 Enrolled - 503 - LRB103 25648 HLH 51997 b
	18080	+	1 a certified copy of the final assessment or revised final
	18081	+	2 assessment of the Department may be filed with the Circuit
	18082	+	3 Court of the county in which the taxpayer has his or her
	18083	+	4 principal place of business, or of Sangamon County in those
	18084	+	5 cases in which the taxpayer does not have his principal place
	18085	+	6 of business in this State. The certified copy of the final
	18086	+	7 assessment or revised final assessment shall be accompanied by
	18087	+	8 a certification which recites facts that are sufficient to
	18088	+	9 show that the Department complied with the jurisdictional
	18089	+	10 requirements of the Law in arriving at its final assessment or
	18090	+	11 its revised final assessment and that the taxpayer had his or
	18091	+	12 her opportunity for an administrative hearing and for judicial
	18092	+	13 review, whether he availed himself or herself of either or
	18093	+	14 both of these opportunities or not. If the court is satisfied
	18094	+	15 that the Department complied with the jurisdictional
	18095	+	16 requirements of the Law in arriving at its final assessment or
	18096	+	17 its revised final assessment and that the taxpayer had his or
	18097	+	18 her opportunity for an administrative hearing and for judicial
	18098	+	19 review, whether he or she availed himself or herself of either
	18099	+	20 or both of these opportunities or not, the court shall enter
	18100	+	21 judgment in favor of the Department and against the taxpayer
	18101	+	22 for the amount shown to be due by the final assessment or the
	18102	+	23 revised final assessment, and such judgment shall be filed of
	18103	+	24 record in the court. Such judgment shall bear the rate of
	18104	+	25 interest set in the Uniform Penalty and Interest Act, but
	18105	+	26 otherwise shall have the same effect as other judgments. The
	18106	+
	18107	+
	18108	+
	18109	+
	18110	+
	18111	+	SB1963 Enrolled - 503 - LRB103 25648 HLH 51997 b
	18112	+
	18113	+
	18114	+	SB1963 Enrolled- 504 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 504 - LRB103 25648 HLH 51997 b
	18115	+	SB1963 Enrolled - 504 - LRB103 25648 HLH 51997 b
	18116	+	1 judgment may be enforced, and all laws applicable to sales for
	18117	+	2 the enforcement of a judgment shall be applicable to sales
	18118	+	3 made under such judgments. The Department shall file the
	18119	+	4 certified copy of its assessment, as herein provided, with the
	18120	+	5 Circuit Court within 2 years after such assessment becomes
	18121	+	6 final except when the taxpayer consents in writing to an
	18122	+	7 extension of such filing period.
	18123	+	8 If, when the cause of action for a proceeding in court
	18124	+	9 accrues against a person, he or she is out of the State, the
	18125	+	10 action may be commenced within the times herein limited, after
	18126	+	11 his or her coming into or return to the State; and if, after
	18127	+	12 the cause of action accrues, he or she departs from and remains
	18128	+	13 out of the State, the time of his or her absence is no part of
	18129	+	14 the time limited for the commencement of the action; but the
	18130	+	15 foregoing provisions concerning absence from the State shall
	18131	+	16 not apply to any case in which, at the time the cause of action
	18132	+	17 accrues, the party against whom the cause of action accrues is
	18133	+	18 not a resident of this State. The time within which a court
	18134	+	19 action is to be commenced by the Department hereunder shall
	18135	+	20 not run while the taxpayer is a debtor in any proceeding under
	18136	+	21 the Federal Bankruptcy Act nor thereafter until 90 days after
	18137	+	22 the Department is notified by such debtor of being discharged
	18138	+	23 in bankruptcy.
	18139	+	24 No claim shall be filed against the estate of any deceased
	18140	+	25 person or a person under legal disability for any tax or
	18141	+	26 penalty or part of either except in the manner prescribed and
	18142	+
	18143	+
	18144	+
	18145	+
	18146	+
	18147	+	SB1963 Enrolled - 504 - LRB103 25648 HLH 51997 b
	18148	+
	18149	+
	18150	+	SB1963 Enrolled- 505 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 505 - LRB103 25648 HLH 51997 b
	18151	+	SB1963 Enrolled - 505 - LRB103 25648 HLH 51997 b
	18152	+	1 within the time limited by the Probate Act of 1975, as amended.
	18153	+	2 The remedies provided for herein shall not be exclusive,
	18154	+	3 but all remedies available to creditors for the collection of
	18155	+	4 debts shall be available for the collection of any tax or
	18156	+	5 penalty due hereunder.
	18157	+	6 The collection of tax or penalty by any means provided for
	18158	+	7 herein shall not be a bar to any prosecution under this Act.
	18159	+	8 The certificate of the Director of the Department to the
	18160	+	9 effect that a tax or amount required to be paid by this Act has
	18161	+	10 not been paid, that a return has not been filed, or that
	18162	+	11 information has not been supplied pursuant to the provisions
	18163	+	12 of this Act, shall be prima facie evidence thereof.
	18164	+	13 Notwithstanding any other provisions of this Act, any
	18165	+	14 amount paid as tax or in respect of tax paid under this Act
	18166	+	15 shall be deemed assessed upon the date of receipt of payment.
	18167	+	16 All of the provisions of Sections 5a, 5b, 5c, 5d, 5e, 5f,
	18168	+	17 5g, 5i and 5j of the Retailers' Occupation Tax Act, which are
	18169	+	18 not inconsistent with this Act, and Section 3-7 of the Uniform
	18170	+	19 Penalty and Interest Act shall apply, as far as practicable,
	18171	+	20 to the subject matter of this Act to the same extent as if such
	18172	+	21 provisions were included herein. References in such
	18173	+	22 incorporated Sections of the "Retailers' Occupation Tax Act"
	18174	+	23 to retailers, to sellers or to persons engaged in the business
	18175	+	24 of selling tangible personal property shall mean distributors
	18176	+	25 when used in this Act.
	18177	+	26 (Source: P.A. 97-1129, eff. 8-28-12; 98-463, eff. 8-16-13.)
	18178	+
	18179	+
	18180	+
	18181	+
	18182	+
	18183	+	SB1963 Enrolled - 505 - LRB103 25648 HLH 51997 b
	18184	+
	18185	+
	18186	+	SB1963 Enrolled- 506 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 506 - LRB103 25648 HLH 51997 b
	18187	+	SB1963 Enrolled - 506 - LRB103 25648 HLH 51997 b
	18188	+	1 Section 100-20. The Cigarette Use Tax Act is amended by
	18189	+	2 changing Section 13 as follows:
	18190	+	3 (35 ILCS 135/13) (from Ch. 120, par. 453.43)
	18191	+	4 Sec. 13. Examination and correction of return. As soon as
	18192	+	5 practicable after any return is filed, the Department shall
	18193	+	6 examine such return and shall correct such return according to
	18194	+	7 its best judgment and information, which return so corrected
	18195	+	8 by the Department shall be prima facie correct and shall be
	18196	+	9 prima facie evidence of the correctness of the amount of tax
	18197	+	10 due, as shown therein. Proof of such correction by the
	18198	+	11 Department may be made at any hearing before the Department or
	18199	+	12 in any legal proceeding by a reproduced copy of the
	18200	+	13 Department's record relating thereto in the name of the
	18201	+	14 Department under the certificate of the Director of Revenue.
	18202	+	15 Such reproduced copy shall, without further proof, be admitted
	18203	+	16 into evidence before the Department or in any legal proceeding
	18204	+	17 and shall be prima facie proof of the correctness of the amount
	18205	+	18 of tax due, as shown therein. If the tax as fixed by the
	18206	+	19 Department is greater than the amount of the tax due under the
	18207	+	20 return as filed, the Department shall issue the person filing
	18208	+	21 such return a notice of tax liability for the amount of tax
	18209	+	22 claimed by the Department to be due, together with a penalty in
	18210	+	23 an amount determined in accordance with Sections 3-3, 3-5 and
	18211	+	24 3-6 of the Uniform Penalty and Interest Act. If, in
	18212	+
	18213	+
	18214	+
	18215	+
	18216	+
	18217	+	SB1963 Enrolled - 506 - LRB103 25648 HLH 51997 b
	18218	+
	18219	+
	18220	+	SB1963 Enrolled- 507 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 507 - LRB103 25648 HLH 51997 b
	18221	+	SB1963 Enrolled - 507 - LRB103 25648 HLH 51997 b
	18222	+	1 administering the provisions of this Act, comparison of a
	18223	+	2 return or returns of a distributor with the books, records and
	18224	+	3 inventories of such distributor discloses a deficiency which
	18225	+	4 cannot be allocated by the Department to a particular month or
	18226	+	5 months, the Department shall issue the distributor a notice of
	18227	+	6 tax liability for the amount of tax claimed by the Department
	18228	+	7 to be due for a given period, but without any obligation upon
	18229	+	8 the Department to allocate such deficiency to any particular
	18230	+	9 month or months, together with a penalty in an amount
	18231	+	10 determined in accordance with Sections 3-3, 3-5 and 3-6 of the
	18232	+	11 Uniform Penalty and Interest Act, under which circumstances
	18233	+	12 the aforesaid notice of tax liability shall be prima facie
	18234	+	13 correct and shall be prima facie evidence of the correctness
	18235	+	14 of the amount of tax due, as shown therein; and proof of such
	18236	+	15 correctness may be made in accordance with, and the
	18237	+	16 admissibility of a reproduced copy of such notice of tax
	18238	+	17 liability shall be governed by, all the provisions of this Act
	18239	+	18 applicable to corrected returns.
	18240	+	19 If any person filing any return dies or becomes a person
	18241	+	20 under legal disability at any time before the Department
	18242	+	21 issues its notice of tax liability, such notice shall be
	18243	+	22 issued to the administrator, executor or other legal
	18244	+	23 representative, as such, of such person.
	18245	+	24 Except as otherwise provided in this Section, if within 60
	18246	+	25 days after such notice of tax liability, the person to whom
	18247	+	26 such notice is issued or his legal representative files a
	18248	+
	18249	+
	18250	+
	18251	+
	18252	+
	18253	+	SB1963 Enrolled - 507 - LRB103 25648 HLH 51997 b
	18254	+
	18255	+
	18256	+	SB1963 Enrolled- 508 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 508 - LRB103 25648 HLH 51997 b
	18257	+	SB1963 Enrolled - 508 - LRB103 25648 HLH 51997 b
	18258	+	1 protest to such notice of tax liability and requests a hearing
	18259	+	2 thereon, the Department shall give notice to such person or
	18260	+	3 legal representative of the time and place fixed for such
	18261	+	4 hearing, and shall hold a hearing in conformity with the
	18262	+	5 provisions of this Act, and pursuant thereto shall issue a
	18263	+	6 final assessment to such person or legal representative for
	18264	+	7 the amount found to be due as a result of such hearing.
	18265	+	8 Effective July 1, 2013, protests concerning matters that are
	18266	+	9 subject to the jurisdiction of the Illinois Independent Tax
	18267	+	10 Tribunal shall be filed with the Tribunal in accordance with
	18268	+	11 the Illinois Independent Tax Tribunal Act of 2012, and
	18269	+	12 hearings concerning those matters shall be held before the
	18270	+	13 Tribunal in accordance with that Act. With respect to protests
	18271	+	14 filed with the Department prior to July 1, 2013 that would
	18272	+	15 otherwise be subject to the jurisdiction of the Illinois
	18273	+	16 Independent Tax Tribunal, the person filing the protest may
	18274	+	17 elect to be subject to the provisions of the Illinois
	18275	+	18 Independent Tax Tribunal Act of 2012 at any time on or after
	18276	+	19 July 1, 2013, but not later than 30 days after the date on
	18277	+	20 which the protest was filed. If made, the election shall be
	18278	+	21 irrevocable. If a protest to the notice of tax liability and a
	18279	+	22 request for a hearing thereon is not filed within the time
	18280	+	23 allowed by law, such notice of tax liability shall become
	18281	+	24 final without the necessity of a final assessment being issued
	18282	+	25 and shall be deemed to be a final assessment.
	18283	+	26 Notwithstanding any other provisions of this Act, any
	18284	+
	18285	+
	18286	+
	18287	+
	18288	+
	18289	+	SB1963 Enrolled - 508 - LRB103 25648 HLH 51997 b
	18290	+
	18291	+
	18292	+	SB1963 Enrolled- 509 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 509 - LRB103 25648 HLH 51997 b
	18293	+	SB1963 Enrolled - 509 - LRB103 25648 HLH 51997 b
	18294	+	1 amount paid as tax or in respect of tax paid under this Act
	18295	+	2 shall be deemed assessed upon the date of receipt of payment.
	18296	+	3 (Source: P.A. 97-1129, eff. 8-28-12.)
	18297	+	4 Section 100-25. The Liquor Control Act of 1934 is amended
	18298	+	5 by changing Section 8-5 as follows:
	18299	+	6 (235 ILCS 5/8-5) (from Ch. 43, par. 163a)
	18300	+	7 Sec. 8-5. As soon as practicable after any return is
	18301	+	8 filed, the Department shall examine such return or amended
	18302	+	9 return and shall correct such return according to its best
	18303	+	10 judgment and information, which return so corrected by the
	18304	+	11 Department shall be prima facie correct and shall be prima
	18305	+	12 facie evidence of the correctness of the amount of tax due, as
	18306	+	13 shown therein. Instead of requiring the licensee to file an
	18307	+	14 amended return, the Department may simply notify the licensee
	18308	+	15 of the correction or corrections it has made. Proof of such
	18309	+	16 correction by the Department, or of the determination of the
	18310	+	17 amount of tax due as provided in Sections 8-4 and 8-10, may be
	18311	+	18 made at any hearing before the Department or in any legal
	18312	+	19 proceeding by a reproduced copy of the Department's record
	18313	+	20 relating thereto in the name of the Department under the
	18314	+	21 certificate of the Director of Revenue. Such reproduced copy
	18315	+	22 shall, without further proof, be admitted into evidence before
	18316	+	23 the Department or in any legal proceeding and shall be prima
	18317	+	24 facie proof of the correctness of the amount of tax due, as
	18318	+
	18319	+
	18320	+
	18321	+
	18322	+
	18323	+	SB1963 Enrolled - 509 - LRB103 25648 HLH 51997 b
	18324	+
	18325	+
	18326	+	SB1963 Enrolled- 510 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 510 - LRB103 25648 HLH 51997 b
	18327	+	SB1963 Enrolled - 510 - LRB103 25648 HLH 51997 b
	18328	+	1 shown therein. If the return so corrected by the Department
	18329	+	2 discloses the sale or use, by a licensed manufacturer or
	18330	+	3 importing distributor, of alcoholic liquors as to which the
	18331	+	4 tax provided for in this Article should have been paid, but has
	18332	+	5 not been paid, in excess of the alcoholic liquors reported as
	18333	+	6 being taxable by the licensee, and as to which the proper tax
	18334	+	7 was paid the Department shall notify the licensee that it
	18335	+	8 shall issue the taxpayer a notice of tax liability for the
	18336	+	9 amount of tax claimed by the Department to be due, together
	18337	+	10 with penalties at the rates prescribed by Sections 3-3, 3-5
	18338	+	11 and 3-6 of the Uniform Penalty and Interest Act, which amount
	18339	+	12 of tax shall be equivalent to the amount of tax which, at the
	18340	+	13 prescribed rate per gallon, should have been paid with respect
	18341	+	14 to the alcoholic liquors disposed of in excess of those
	18342	+	15 reported as being taxable. No earlier than 90 days after the
	18343	+	16 due date of the return, the Department may compare filed
	18344	+	17 returns, or any amendments thereto, against reports of sales
	18345	+	18 of alcoholic liquor submitted to the Department by other
	18346	+	19 manufacturers and distributors. If a return or amended return
	18347	+	20 is corrected by the Department because the return or amended
	18348	+	21 return failed to disclose the purchase of alcoholic liquor
	18349	+	22 from manufacturers or distributors on which the tax provided
	18350	+	23 for in this Article should have been paid, but has not been
	18351	+	24 paid, the Department shall issue the taxpayer a notice of tax
	18352	+	25 liability for the amount of tax claimed by the Department to be
	18353	+	26 due, together with penalties at the rates prescribed by
	18354	+
	18355	+
	18356	+
	18357	+
	18358	+
	18359	+	SB1963 Enrolled - 510 - LRB103 25648 HLH 51997 b
	18360	+
	18361	+
	18362	+	SB1963 Enrolled- 511 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 511 - LRB103 25648 HLH 51997 b
	18363	+	SB1963 Enrolled - 511 - LRB103 25648 HLH 51997 b
	18364	+	1 Sections 3-3, 3-5, and 3-6 of the Uniform Penalty and Interest
	18365	+	2 Act. In a case where no return has been filed, the Department
	18366	+	3 shall determine the amount of tax due according to its best
	18367	+	4 judgment and information and shall issue the taxpayer a notice
	18368	+	5 of tax liability for the amount of tax claimed by the
	18369	+	6 Department to be due as herein provided together with
	18370	+	7 penalties at the rates prescribed by Sections 3-3, 3-5 and 3-6
	18371	+	8 of the Uniform Penalty and Interest Act. If, in administering
	18372	+	9 the provisions of this Act, a comparison of a licensee's
	18373	+	10 return or returns with the books, records and physical
	18374	+	11 inventories of such licensee discloses a deficiency which
	18375	+	12 cannot be allocated by the Department to a particular month or
	18376	+	13 months, the Department shall issue the taxpayer a notice of
	18377	+	14 tax liability for the amount of tax claimed by the Department
	18378	+	15 to be due for a given period, but without any obligation upon
	18379	+	16 the Department to allocate such deficiency to any particular
	18380	+	17 month or months, together with penalties at the rates
	18381	+	18 prescribed by Sections 3-3, 3-5 and 3-6 of the Uniform Penalty
	18382	+	19 and Interest Act, which amount of tax shall be equivalent to
	18383	+	20 the amount of tax which, at the prescribed rate per gallon,
	18384	+	21 should have been paid with respect to the alcoholic liquors
	18385	+	22 disposed of in excess of those reported being taxable, with
	18386	+	23 the tax thereon having been paid under which circumstances the
	18387	+	24 aforesaid notice of tax liability shall be prima facie correct
	18388	+	25 and shall be prima facie evidence of the correctness of the
	18389	+	26 amount of tax due as shown therein; and proof of such
	18390	+
	18391	+
	18392	+
	18393	+
	18394	+
	18395	+	SB1963 Enrolled - 511 - LRB103 25648 HLH 51997 b
	18396	+
	18397	+
	18398	+	SB1963 Enrolled- 512 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 512 - LRB103 25648 HLH 51997 b
	18399	+	SB1963 Enrolled - 512 - LRB103 25648 HLH 51997 b
	18400	+	1 correctness may be made in accordance with, and the
	18401	+	2 admissibility of a reproduced copy of such notice of the
	18402	+	3 Department's notice of tax liability shall be governed by, all
	18403	+	4 the provisions of this Act applicable to corrected returns.
	18404	+	5 If the licensee dies or becomes a person under legal
	18405	+	6 disability at any time before the Department issues its notice
	18406	+	7 of tax liability, such notice shall be issued to the
	18407	+	8 administrator, executor or other legal representative, as
	18408	+	9 such, of the deceased or licensee who is under legal
	18409	+	10 disability.
	18410	+	11 If such licensee or legal representative, within 60 days
	18411	+	12 after such notice of tax liability, files a protest to such
	18412	+	13 notice of tax liability and requests a hearing thereon, the
	18413	+	14 Department shall give at least 7 days' notice to such licensee
	18414	+	15 or legal representative, as the case may be, of the time and
	18415	+	16 place fixed for such hearing and shall hold a hearing in
	18416	+	17 conformity with the provisions of this Act, and pursuant
	18417	+	18 thereto shall issue a final assessment to such licensee or
	18418	+	19 legal representative for the amount found to be due as a result
	18419	+	20 of such hearing.
	18420	+	21 If a protest to the notice of tax liability and a request
	18421	+	22 for a hearing thereon is not filed within 60 days after such
	18422	+	23 notice of tax liability, such notice of tax liability shall
	18423	+	24 become final without the necessity of a final assessment being
	18424	+	25 issued and shall be deemed to be a final assessment.
	18425	+	26 Notwithstanding any other provisions of this Act, any
	18426	+
	18427	+
	18428	+
	18429	+
	18430	+
	18431	+	SB1963 Enrolled - 512 - LRB103 25648 HLH 51997 b
	18432	+
	18433	+
	18434	+	SB1963 Enrolled- 513 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 513 - LRB103 25648 HLH 51997 b
	18435	+	SB1963 Enrolled - 513 - LRB103 25648 HLH 51997 b
	18436	+	1 amount paid as tax or in respect of tax paid under this Act
	18437	+	2 shall be deemed assessed upon the date of receipt of payment.
	18438	+	3 In case of failure to pay the tax, or any portion thereof,
	18439	+	4 or any penalty provided for herein, when due, the Department
	18440	+	5 may recover the amount of such tax, or portion thereof, or
	18441	+	6 penalty in a civil action; or if the licensee dies or becomes a
	18442	+	7 person under legal disability, by filing a claim therefor
	18443	+	8 against his or her estate; provided that no such claim shall be
	18444	+	9 filed against the estate of any deceased or of the licensee who
	18445	+	10 is under legal disability for any tax or penalty or portion
	18446	+	11 thereof except in the manner prescribed and within the time
	18447	+	12 limited by the Probate Act of 1975, as amended.
	18448	+	13 The collection of any such tax and penalty, or either, by
	18449	+	14 any means provided for herein, shall not be a bar to any
	18450	+	15 prosecution under this Act.
	18451	+	16 In addition to any other penalty provided for in this
	18452	+	17 Article, all provisions of the Uniform Penalty and Interest
	18453	+	18 Act that are not inconsistent with this Act apply.
	18454	+	19 (Source: P.A. 100-1050, eff. 7-1-19; 101-16, eff. 6-14-19.)
	18455	+	20 ARTICLE 110. PARTNERSHIPS
	18456	+	21 Section 5. The Illinois Income Tax Act is amended by
	18457	+	22 changing Section 201 as follows:
	18458	+	23 (35 ILCS 5/201)
	18459	+
	18460	+
	18461	+
	18462	+
	18463	+
	18464	+	SB1963 Enrolled - 513 - LRB103 25648 HLH 51997 b
	18465	+
	18466	+
	18467	+	SB1963 Enrolled- 514 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 514 - LRB103 25648 HLH 51997 b
	18468	+	SB1963 Enrolled - 514 - LRB103 25648 HLH 51997 b
	18469	+	1 Sec. 201. Tax imposed.
	18470	+	2 (a) In general. A tax measured by net income is hereby
	18471	+	3 imposed on every individual, corporation, trust and estate for
	18472	+	4 each taxable year ending after July 31, 1969 on the privilege
	18473	+	5 of earning or receiving income in or as a resident of this
	18474	+	6 State. Such tax shall be in addition to all other occupation or
	18475	+	7 privilege taxes imposed by this State or by any municipal
	18476	+	8 corporation or political subdivision thereof.
	18477	+	9 (b) Rates. The tax imposed by subsection (a) of this
	18478	+	10 Section shall be determined as follows, except as adjusted by
	18479	+	11 subsection (d-1):
	18480	+	12 (1) In the case of an individual, trust or estate, for
	18481	+	13 taxable years ending prior to July 1, 1989, an amount
	18482	+	14 equal to 2 1/2% of the taxpayer's net income for the
	18483	+	15 taxable year.
	18484	+	16 (2) In the case of an individual, trust or estate, for
	18485	+	17 taxable years beginning prior to July 1, 1989 and ending
	18486	+	18 after June 30, 1989, an amount equal to the sum of (i) 2
	18487	+	19 1/2% of the taxpayer's net income for the period prior to
	18488	+	20 July 1, 1989, as calculated under Section 202.3, and (ii)
	18489	+	21 3% of the taxpayer's net income for the period after June
	18490	+	22 30, 1989, as calculated under Section 202.3.
	18491	+	23 (3) In the case of an individual, trust or estate, for
	18492	+	24 taxable years beginning after June 30, 1989, and ending
	18493	+	25 prior to January 1, 2011, an amount equal to 3% of the
	18494	+	26 taxpayer's net income for the taxable year.
	18495	+
	18496	+
	18497	+
	18498	+
	18499	+
	18500	+	SB1963 Enrolled - 514 - LRB103 25648 HLH 51997 b
	18501	+
	18502	+
	18503	+	SB1963 Enrolled- 515 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 515 - LRB103 25648 HLH 51997 b
	18504	+	SB1963 Enrolled - 515 - LRB103 25648 HLH 51997 b
	18505	+	1 (4) In the case of an individual, trust, or estate,
	18506	+	2 for taxable years beginning prior to January 1, 2011, and
	18507	+	3 ending after December 31, 2010, an amount equal to the sum
	18508	+	4 of (i) 3% of the taxpayer's net income for the period prior
	18509	+	5 to January 1, 2011, as calculated under Section 202.5, and
	18510	+	6 (ii) 5% of the taxpayer's net income for the period after
	18511	+	7 December 31, 2010, as calculated under Section 202.5.
	18512	+	8 (5) In the case of an individual, trust, or estate,
	18513	+	9 for taxable years beginning on or after January 1, 2011,
	18514	+	10 and ending prior to January 1, 2015, an amount equal to 5%
	18515	+	11 of the taxpayer's net income for the taxable year.
	18516	+	12 (5.1) In the case of an individual, trust, or estate,
	18517	+	13 for taxable years beginning prior to January 1, 2015, and
	18518	+	14 ending after December 31, 2014, an amount equal to the sum
	18519	+	15 of (i) 5% of the taxpayer's net income for the period prior
	18520	+	16 to January 1, 2015, as calculated under Section 202.5, and
	18521	+	17 (ii) 3.75% of the taxpayer's net income for the period
	18522	+	18 after December 31, 2014, as calculated under Section
	18523	+	19 202.5.
	18524	+	20 (5.2) In the case of an individual, trust, or estate,
	18525	+	21 for taxable years beginning on or after January 1, 2015,
	18526	+	22 and ending prior to July 1, 2017, an amount equal to 3.75%
	18527	+	23 of the taxpayer's net income for the taxable year.
	18528	+	24 (5.3) In the case of an individual, trust, or estate,
	18529	+	25 for taxable years beginning prior to July 1, 2017, and
	18530	+	26 ending after June 30, 2017, an amount equal to the sum of
	18531	+
	18532	+
	18533	+
	18534	+
	18535	+
	18536	+	SB1963 Enrolled - 515 - LRB103 25648 HLH 51997 b
	18537	+
	18538	+
	18539	+	SB1963 Enrolled- 516 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 516 - LRB103 25648 HLH 51997 b
	18540	+	SB1963 Enrolled - 516 - LRB103 25648 HLH 51997 b
	18541	+	1 (i) 3.75% of the taxpayer's net income for the period
	18542	+	2 prior to July 1, 2017, as calculated under Section 202.5,
	18543	+	3 and (ii) 4.95% of the taxpayer's net income for the period
	18544	+	4 after June 30, 2017, as calculated under Section 202.5.
	18545	+	5 (5.4) In the case of an individual, trust, or estate,
	18546	+	6 for taxable years beginning on or after July 1, 2017, an
	18547	+	7 amount equal to 4.95% of the taxpayer's net income for the
	18548	+	8 taxable year.
	18549	+	9 (6) In the case of a corporation, for taxable years
	18550	+	10 ending prior to July 1, 1989, an amount equal to 4% of the
	18551	+	11 taxpayer's net income for the taxable year.
	18552	+	12 (7) In the case of a corporation, for taxable years
	18553	+	13 beginning prior to July 1, 1989 and ending after June 30,
	18554	+	14 1989, an amount equal to the sum of (i) 4% of the
	18555	+	15 taxpayer's net income for the period prior to July 1,
	18556	+	16 1989, as calculated under Section 202.3, and (ii) 4.8% of
	18557	+	17 the taxpayer's net income for the period after June 30,
	18558	+	18 1989, as calculated under Section 202.3.
	18559	+	19 (8) In the case of a corporation, for taxable years
	18560	+	20 beginning after June 30, 1989, and ending prior to January
	18561	+	21 1, 2011, an amount equal to 4.8% of the taxpayer's net
	18562	+	22 income for the taxable year.
	18563	+	23 (9) In the case of a corporation, for taxable years
	18564	+	24 beginning prior to January 1, 2011, and ending after
	18565	+	25 December 31, 2010, an amount equal to the sum of (i) 4.8%
	18566	+	26 of the taxpayer's net income for the period prior to
	18567	+
	18568	+
	18569	+
	18570	+
	18571	+
	18572	+	SB1963 Enrolled - 516 - LRB103 25648 HLH 51997 b
	18573	+
	18574	+
	18575	+	SB1963 Enrolled- 517 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 517 - LRB103 25648 HLH 51997 b
	18576	+	SB1963 Enrolled - 517 - LRB103 25648 HLH 51997 b
	18577	+	1 January 1, 2011, as calculated under Section 202.5, and
	18578	+	2 (ii) 7% of the taxpayer's net income for the period after
	18579	+	3 December 31, 2010, as calculated under Section 202.5.
	18580	+	4 (10) In the case of a corporation, for taxable years
	18581	+	5 beginning on or after January 1, 2011, and ending prior to
	18582	+	6 January 1, 2015, an amount equal to 7% of the taxpayer's
	18583	+	7 net income for the taxable year.
	18584	+	8 (11) In the case of a corporation, for taxable years
	18585	+	9 beginning prior to January 1, 2015, and ending after
	18586	+	10 December 31, 2014, an amount equal to the sum of (i) 7% of
	18587	+	11 the taxpayer's net income for the period prior to January
	18588	+	12 1, 2015, as calculated under Section 202.5, and (ii) 5.25%
	18589	+	13 of the taxpayer's net income for the period after December
	18590	+	14 31, 2014, as calculated under Section 202.5.
	18591	+	15 (12) In the case of a corporation, for taxable years
	18592	+	16 beginning on or after January 1, 2015, and ending prior to
	18593	+	17 July 1, 2017, an amount equal to 5.25% of the taxpayer's
	18594	+	18 net income for the taxable year.
	18595	+	19 (13) In the case of a corporation, for taxable years
	18596	+	20 beginning prior to July 1, 2017, and ending after June 30,
	18597	+	21 2017, an amount equal to the sum of (i) 5.25% of the
	18598	+	22 taxpayer's net income for the period prior to July 1,
	18599	+	23 2017, as calculated under Section 202.5, and (ii) 7% of
	18600	+	24 the taxpayer's net income for the period after June 30,
	18601	+	25 2017, as calculated under Section 202.5.
	18602	+	26 (14) In the case of a corporation, for taxable years
	18603	+
	18604	+
	18605	+
	18606	+
	18607	+
	18608	+	SB1963 Enrolled - 517 - LRB103 25648 HLH 51997 b
	18609	+
	18610	+
	18611	+	SB1963 Enrolled- 518 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 518 - LRB103 25648 HLH 51997 b
	18612	+	SB1963 Enrolled - 518 - LRB103 25648 HLH 51997 b
	18613	+	1 beginning on or after July 1, 2017, an amount equal to 7%
	18614	+	2 of the taxpayer's net income for the taxable year.
	18615	+	3 The rates under this subsection (b) are subject to the
	18616	+	4 provisions of Section 201.5.
	18617	+	5 (b-5) Surcharge; sale or exchange of assets, properties,
	18618	+	6 and intangibles of organization gaming licensees. For each of
	18619	+	7 taxable years 2019 through 2027, a surcharge is imposed on all
	18620	+	8 taxpayers on income arising from the sale or exchange of
	18621	+	9 capital assets, depreciable business property, real property
	18622	+	10 used in the trade or business, and Section 197 intangibles (i)
	18623	+	11 of an organization licensee under the Illinois Horse Racing
	18624	+	12 Act of 1975 and (ii) of an organization gaming licensee under
	18625	+	13 the Illinois Gambling Act. The amount of the surcharge is
	18626	+	14 equal to the amount of federal income tax liability for the
	18627	+	15 taxable year attributable to those sales and exchanges. The
	18628	+	16 surcharge imposed shall not apply if:
	18629	+	17 (1) the organization gaming license, organization
	18630	+	18 license, or racetrack property is transferred as a result
	18631	+	19 of any of the following:
	18632	+	20 (A) bankruptcy, a receivership, or a debt
	18633	+	21 adjustment initiated by or against the initial
	18634	+	22 licensee or the substantial owners of the initial
	18635	+	23 licensee;
	18636	+	24 (B) cancellation, revocation, or termination of
	18637	+	25 any such license by the Illinois Gaming Board or the
	18638	+	26 Illinois Racing Board;
	18639	+
	18640	+
	18641	+
	18642	+
	18643	+
	18644	+	SB1963 Enrolled - 518 - LRB103 25648 HLH 51997 b
	18645	+
	18646	+
	18647	+	SB1963 Enrolled- 519 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 519 - LRB103 25648 HLH 51997 b
	18648	+	SB1963 Enrolled - 519 - LRB103 25648 HLH 51997 b
	18649	+	1 (C) a determination by the Illinois Gaming Board
	18650	+	2 that transfer of the license is in the best interests
	18651	+	3 of Illinois gaming;
	18652	+	4 (D) the death of an owner of the equity interest in
	18653	+	5 a licensee;
	18654	+	6 (E) the acquisition of a controlling interest in
	18655	+	7 the stock or substantially all of the assets of a
	18656	+	8 publicly traded company;
	18657	+	9 (F) a transfer by a parent company to a wholly
	18658	+	10 owned subsidiary; or
	18659	+	11 (G) the transfer or sale to or by one person to
	18660	+	12 another person where both persons were initial owners
	18661	+	13 of the license when the license was issued; or
	18662	+	14 (2) the controlling interest in the organization
	18663	+	15 gaming license, organization license, or racetrack
	18664	+	16 property is transferred in a transaction to lineal
	18665	+	17 descendants in which no gain or loss is recognized or as a
	18666	+	18 result of a transaction in accordance with Section 351 of
	18667	+	19 the Internal Revenue Code in which no gain or loss is
	18668	+	20 recognized; or
	18669	+	21 (3) live horse racing was not conducted in 2010 at a
	18670	+	22 racetrack located within 3 miles of the Mississippi River
	18671	+	23 under a license issued pursuant to the Illinois Horse
	18672	+	24 Racing Act of 1975.
	18673	+	25 The transfer of an organization gaming license,
	18674	+	26 organization license, or racetrack property by a person other
	18675	+
	18676	+
	18677	+
	18678	+
	18679	+
	18680	+	SB1963 Enrolled - 519 - LRB103 25648 HLH 51997 b
	18681	+
	18682	+
	18683	+	SB1963 Enrolled- 520 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 520 - LRB103 25648 HLH 51997 b
	18684	+	SB1963 Enrolled - 520 - LRB103 25648 HLH 51997 b
	18685	+	1 than the initial licensee to receive the organization gaming
	18686	+	2 license is not subject to a surcharge. The Department shall
	18687	+	3 adopt rules necessary to implement and administer this
	18688	+	4 subsection.
	18689	+	5 (c) Personal Property Tax Replacement Income Tax.
	18690	+	6 Beginning on July 1, 1979 and thereafter, in addition to such
	18691	+	7 income tax, there is also hereby imposed the Personal Property
	18692	+	8 Tax Replacement Income Tax measured by net income on every
	18693	+	9 corporation (including Subchapter S corporations), partnership
	18694	+	10 and trust, for each taxable year ending after June 30, 1979.
	18695	+	11 Such taxes are imposed on the privilege of earning or
	18696	+	12 receiving income in or as a resident of this State. The
	18697	+	13 Personal Property Tax Replacement Income Tax shall be in
	18698	+	14 addition to the income tax imposed by subsections (a) and (b)
	18699	+	15 of this Section and in addition to all other occupation or
	18700	+	16 privilege taxes imposed by this State or by any municipal
	18701	+	17 corporation or political subdivision thereof.
	18702	+	18 (d) Additional Personal Property Tax Replacement Income
	18703	+	19 Tax Rates. The personal property tax replacement income tax
	18704	+	20 imposed by this subsection and subsection (c) of this Section
	18705	+	21 in the case of a corporation, other than a Subchapter S
	18706	+	22 corporation and except as adjusted by subsection (d-1), shall
	18707	+	23 be an additional amount equal to 2.85% of such taxpayer's net
	18708	+	24 income for the taxable year, except that beginning on January
	18709	+	25 1, 1981, and thereafter, the rate of 2.85% specified in this
	18710	+	26 subsection shall be reduced to 2.5%, and in the case of a
	18711	+
	18712	+
	18713	+
	18714	+
	18715	+
	18716	+	SB1963 Enrolled - 520 - LRB103 25648 HLH 51997 b
	18717	+
	18718	+
	18719	+	SB1963 Enrolled- 521 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 521 - LRB103 25648 HLH 51997 b
	18720	+	SB1963 Enrolled - 521 - LRB103 25648 HLH 51997 b
	18721	+	1 partnership, trust or a Subchapter S corporation shall be an
	18722	+	2 additional amount equal to 1.5% of such taxpayer's net income
	18723	+	3 for the taxable year.
	18724	+	4 (d-1) Rate reduction for certain foreign insurers. In the
	18725	+	5 case of a foreign insurer, as defined by Section 35A-5 of the
	18726	+	6 Illinois Insurance Code, whose state or country of domicile
	18727	+	7 imposes on insurers domiciled in Illinois a retaliatory tax
	18728	+	8 (excluding any insurer whose premiums from reinsurance assumed
	18729	+	9 are 50% or more of its total insurance premiums as determined
	18730	+	10 under paragraph (2) of subsection (b) of Section 304, except
	18731	+	11 that for purposes of this determination premiums from
	18732	+	12 reinsurance do not include premiums from inter-affiliate
	18733	+	13 reinsurance arrangements), beginning with taxable years ending
	18734	+	14 on or after December 31, 1999, the sum of the rates of tax
	18735	+	15 imposed by subsections (b) and (d) shall be reduced (but not
	18736	+	16 increased) to the rate at which the total amount of tax imposed
	18737	+	17 under this Act, net of all credits allowed under this Act,
	18738	+	18 shall equal (i) the total amount of tax that would be imposed
	18739	+	19 on the foreign insurer's net income allocable to Illinois for
	18740	+	20 the taxable year by such foreign insurer's state or country of
	18741	+	21 domicile if that net income were subject to all income taxes
	18742	+	22 and taxes measured by net income imposed by such foreign
	18743	+	23 insurer's state or country of domicile, net of all credits
	18744	+	24 allowed or (ii) a rate of zero if no such tax is imposed on
	18745	+	25 such income by the foreign insurer's state of domicile. For
	18746	+	26 the purposes of this subsection (d-1), an inter-affiliate
	18747	+
	18748	+
	18749	+
	18750	+
	18751	+
	18752	+	SB1963 Enrolled - 521 - LRB103 25648 HLH 51997 b
	18753	+
	18754	+
	18755	+	SB1963 Enrolled- 522 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 522 - LRB103 25648 HLH 51997 b
	18756	+	SB1963 Enrolled - 522 - LRB103 25648 HLH 51997 b
	18757	+	1 includes a mutual insurer under common management.
	18758	+	2 (1) For the purposes of subsection (d-1), in no event
	18759	+	3 shall the sum of the rates of tax imposed by subsections
	18760	+	4 (b) and (d) be reduced below the rate at which the sum of:
	18761	+	5 (A) the total amount of tax imposed on such
	18762	+	6 foreign insurer under this Act for a taxable year, net
	18763	+	7 of all credits allowed under this Act, plus
	18764	+	8 (B) the privilege tax imposed by Section 409 of
	18765	+	9 the Illinois Insurance Code, the fire insurance
	18766	+	10 company tax imposed by Section 12 of the Fire
	18767	+	11 Investigation Act, and the fire department taxes
	18768	+	12 imposed under Section 11-10-1 of the Illinois
	18769	+	13 Municipal Code,
	18770	+	14 equals 1.25% for taxable years ending prior to December
	18771	+	15 31, 2003, or 1.75% for taxable years ending on or after
	18772	+	16 December 31, 2003, of the net taxable premiums written for
	18773	+	17 the taxable year, as described by subsection (1) of
	18774	+	18 Section 409 of the Illinois Insurance Code. This paragraph
	18775	+	19 will in no event increase the rates imposed under
	18776	+	20 subsections (b) and (d).
	18777	+	21 (2) Any reduction in the rates of tax imposed by this
	18778	+	22 subsection shall be applied first against the rates
	18779	+	23 imposed by subsection (b) and only after the tax imposed
	18780	+	24 by subsection (a) net of all credits allowed under this
	18781	+	25 Section other than the credit allowed under subsection (i)
	18782	+	26 has been reduced to zero, against the rates imposed by
	18783	+
	18784	+
	18785	+
	18786	+
	18787	+
	18788	+	SB1963 Enrolled - 522 - LRB103 25648 HLH 51997 b
	18789	+
	18790	+
	18791	+	SB1963 Enrolled- 523 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 523 - LRB103 25648 HLH 51997 b
	18792	+	SB1963 Enrolled - 523 - LRB103 25648 HLH 51997 b
	18793	+	1 subsection (d).
	18794	+	2 This subsection (d-1) is exempt from the provisions of
	18795	+	3 Section 250.
	18796	+	4 (e) Investment credit. A taxpayer shall be allowed a
	18797	+	5 credit against the Personal Property Tax Replacement Income
	18798	+	6 Tax for investment in qualified property.
	18799	+	7 (1) A taxpayer shall be allowed a credit equal to .5%
	18800	+	8 of the basis of qualified property placed in service
	18801	+	9 during the taxable year, provided such property is placed
	18802	+	10 in service on or after July 1, 1984. There shall be allowed
	18803	+	11 an additional credit equal to .5% of the basis of
	18804	+	12 qualified property placed in service during the taxable
	18805	+	13 year, provided such property is placed in service on or
	18806	+	14 after July 1, 1986, and the taxpayer's base employment
	18807	+	15 within Illinois has increased by 1% or more over the
	18808	+	16 preceding year as determined by the taxpayer's employment
	18809	+	17 records filed with the Illinois Department of Employment
	18810	+	18 Security. Taxpayers who are new to Illinois shall be
	18811	+	19 deemed to have met the 1% growth in base employment for the
	18812	+	20 first year in which they file employment records with the
	18813	+	21 Illinois Department of Employment Security. The provisions
	18814	+	22 added to this Section by Public Act 85-1200 (and restored
	18815	+	23 by Public Act 87-895) shall be construed as declaratory of
	18816	+	24 existing law and not as a new enactment. If, in any year,
	18817	+	25 the increase in base employment within Illinois over the
	18818	+	26 preceding year is less than 1%, the additional credit
	18819	+
	18820	+
	18821	+
	18822	+
	18823	+
	18824	+	SB1963 Enrolled - 523 - LRB103 25648 HLH 51997 b
	18825	+
	18826	+
	18827	+	SB1963 Enrolled- 524 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 524 - LRB103 25648 HLH 51997 b
	18828	+	SB1963 Enrolled - 524 - LRB103 25648 HLH 51997 b
	18829	+	1 shall be limited to that percentage times a fraction, the
	18830	+	2 numerator of which is .5% and the denominator of which is
	18831	+	3 1%, but shall not exceed .5%. The investment credit shall
	18832	+	4 not be allowed to the extent that it would reduce a
	18833	+	5 taxpayer's liability in any tax year below zero, nor may
	18834	+	6 any credit for qualified property be allowed for any year
	18835	+	7 other than the year in which the property was placed in
	18836	+	8 service in Illinois. For tax years ending on or after
	18837	+	9 December 31, 1987, and on or before December 31, 1988, the
	18838	+	10 credit shall be allowed for the tax year in which the
	18839	+	11 property is placed in service, or, if the amount of the
	18840	+	12 credit exceeds the tax liability for that year, whether it
	18841	+	13 exceeds the original liability or the liability as later
	18842	+	14 amended, such excess may be carried forward and applied to
	18843	+	15 the tax liability of the 5 taxable years following the
	18844	+	16 excess credit years if the taxpayer (i) makes investments
	18845	+	17 which cause the creation of a minimum of 2,000 full-time
	18846	+	18 equivalent jobs in Illinois, (ii) is located in an
	18847	+	19 enterprise zone established pursuant to the Illinois
	18848	+	20 Enterprise Zone Act and (iii) is certified by the
	18849	+	21 Department of Commerce and Community Affairs (now
	18850	+	22 Department of Commerce and Economic Opportunity) as
	18851	+	23 complying with the requirements specified in clause (i)
	18852	+	24 and (ii) by July 1, 1986. The Department of Commerce and
	18853	+	25 Community Affairs (now Department of Commerce and Economic
	18854	+	26 Opportunity) shall notify the Department of Revenue of all
	18855	+
	18856	+
	18857	+
	18858	+
	18859	+
	18860	+	SB1963 Enrolled - 524 - LRB103 25648 HLH 51997 b
	18861	+
	18862	+
	18863	+	SB1963 Enrolled- 525 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 525 - LRB103 25648 HLH 51997 b
	18864	+	SB1963 Enrolled - 525 - LRB103 25648 HLH 51997 b
	18865	+	1 such certifications immediately. For tax years ending
	18866	+	2 after December 31, 1988, the credit shall be allowed for
	18867	+	3 the tax year in which the property is placed in service,
	18868	+	4 or, if the amount of the credit exceeds the tax liability
	18869	+	5 for that year, whether it exceeds the original liability
	18870	+	6 or the liability as later amended, such excess may be
	18871	+	7 carried forward and applied to the tax liability of the 5
	18872	+	8 taxable years following the excess credit years. The
	18873	+	9 credit shall be applied to the earliest year for which
	18874	+	10 there is a liability. If there is credit from more than one
	18875	+	11 tax year that is available to offset a liability, earlier
	18876	+	12 credit shall be applied first.
	18877	+	13 (2) The term "qualified property" means property
	18878	+	14 which:
	18879	+	15 (A) is tangible, whether new or used, including
	18880	+	16 buildings and structural components of buildings and
	18881	+	17 signs that are real property, but not including land
	18882	+	18 or improvements to real property that are not a
	18883	+	19 structural component of a building such as
	18884	+	20 landscaping, sewer lines, local access roads, fencing,
	18885	+	21 parking lots, and other appurtenances;
	18886	+	22 (B) is depreciable pursuant to Section 167 of the
	18887	+	23 Internal Revenue Code, except that "3-year property"
	18888	+	24 as defined in Section 168(c)(2)(A) of that Code is not
	18889	+	25 eligible for the credit provided by this subsection
	18890	+	26 (e);
	18891	+
	18892	+
	18893	+
	18894	+
	18895	+
	18896	+	SB1963 Enrolled - 525 - LRB103 25648 HLH 51997 b
	18897	+
	18898	+
	18899	+	SB1963 Enrolled- 526 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 526 - LRB103 25648 HLH 51997 b
	18900	+	SB1963 Enrolled - 526 - LRB103 25648 HLH 51997 b
	18901	+	1 (C) is acquired by purchase as defined in Section
	18902	+	2 179(d) of the Internal Revenue Code;
	18903	+	3 (D) is used in Illinois by a taxpayer who is
	18904	+	4 primarily engaged in manufacturing, or in mining coal
	18905	+	5 or fluorite, or in retailing, or was placed in service
	18906	+	6 on or after July 1, 2006 in a River Edge Redevelopment
	18907	+	7 Zone established pursuant to the River Edge
	18908	+	8 Redevelopment Zone Act; and
	18909	+	9 (E) has not previously been used in Illinois in
	18910	+	10 such a manner and by such a person as would qualify for
	18911	+	11 the credit provided by this subsection (e) or
	18912	+	12 subsection (f).
	18913	+	13 (3) For purposes of this subsection (e),
	18914	+	14 "manufacturing" means the material staging and production
	18915	+	15 of tangible personal property by procedures commonly
	18916	+	16 regarded as manufacturing, processing, fabrication, or
	18917	+	17 assembling which changes some existing material into new
	18918	+	18 shapes, new qualities, or new combinations. For purposes
	18919	+	19 of this subsection (e) the term "mining" shall have the
	18920	+	20 same meaning as the term "mining" in Section 613(c) of the
	18921	+	21 Internal Revenue Code. For purposes of this subsection
	18922	+	22 (e), the term "retailing" means the sale of tangible
	18923	+	23 personal property for use or consumption and not for
	18924	+	24 resale, or services rendered in conjunction with the sale
	18925	+	25 of tangible personal property for use or consumption and
	18926	+	26 not for resale. For purposes of this subsection (e),
	18927	+
	18928	+
	18929	+
	18930	+
	18931	+
	18932	+	SB1963 Enrolled - 526 - LRB103 25648 HLH 51997 b
	18933	+
	18934	+
	18935	+	SB1963 Enrolled- 527 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 527 - LRB103 25648 HLH 51997 b
	18936	+	SB1963 Enrolled - 527 - LRB103 25648 HLH 51997 b
	18937	+	1 "tangible personal property" has the same meaning as when
	18938	+	2 that term is used in the Retailers' Occupation Tax Act,
	18939	+	3 and, for taxable years ending after December 31, 2008,
	18940	+	4 does not include the generation, transmission, or
	18941	+	5 distribution of electricity.
	18942	+	6 (4) The basis of qualified property shall be the basis
	18943	+	7 used to compute the depreciation deduction for federal
	18944	+	8 income tax purposes.
	18945	+	9 (5) If the basis of the property for federal income
	18946	+	10 tax depreciation purposes is increased after it has been
	18947	+	11 placed in service in Illinois by the taxpayer, the amount
	18948	+	12 of such increase shall be deemed property placed in
	18949	+	13 service on the date of such increase in basis.
	18950	+	14 (6) The term "placed in service" shall have the same
	18951	+	15 meaning as under Section 46 of the Internal Revenue Code.
	18952	+	16 (7) If during any taxable year, any property ceases to
	18953	+	17 be qualified property in the hands of the taxpayer within
	18954	+	18 48 months after being placed in service, or the situs of
	18955	+	19 any qualified property is moved outside Illinois within 48
	18956	+	20 months after being placed in service, the Personal
	18957	+	21 Property Tax Replacement Income Tax for such taxable year
	18958	+	22 shall be increased. Such increase shall be determined by
	18959	+	23 (i) recomputing the investment credit which would have
	18960	+	24 been allowed for the year in which credit for such
	18961	+	25 property was originally allowed by eliminating such
	18962	+	26 property from such computation and, (ii) subtracting such
	18963	+
	18964	+
	18965	+
	18966	+
	18967	+
	18968	+	SB1963 Enrolled - 527 - LRB103 25648 HLH 51997 b
	18969	+
	18970	+
	18971	+	SB1963 Enrolled- 528 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 528 - LRB103 25648 HLH 51997 b
	18972	+	SB1963 Enrolled - 528 - LRB103 25648 HLH 51997 b
	18973	+	1 recomputed credit from the amount of credit previously
	18974	+	2 allowed. For the purposes of this paragraph (7), a
	18975	+	3 reduction of the basis of qualified property resulting
	18976	+	4 from a redetermination of the purchase price shall be
	18977	+	5 deemed a disposition of qualified property to the extent
	18978	+	6 of such reduction.
	18979	+	7 (8) Unless the investment credit is extended by law,
	18980	+	8 the basis of qualified property shall not include costs
	18981	+	9 incurred after December 31, 2018, except for costs
	18982	+	10 incurred pursuant to a binding contract entered into on or
	18983	+	11 before December 31, 2018.
	18984	+	12 (9) Each taxable year ending before December 31, 2000,
	18985	+	13 a partnership may elect to pass through to its partners
	18986	+	14 the credits to which the partnership is entitled under
	18987	+	15 this subsection (e) for the taxable year. A partner may
	18988	+	16 use the credit allocated to him or her under this
	18989	+	17 paragraph only against the tax imposed in subsections (c)
	18990	+	18 and (d) of this Section. If the partnership makes that
	18991	+	19 election, those credits shall be allocated among the
	18992	+	20 partners in the partnership in accordance with the rules
	18993	+	21 set forth in Section 704(b) of the Internal Revenue Code,
	18994	+	22 and the rules promulgated under that Section, and the
	18995	+	23 allocated amount of the credits shall be allowed to the
	18996	+	24 partners for that taxable year. The partnership shall make
	18997	+	25 this election on its Personal Property Tax Replacement
	18998	+	26 Income Tax return for that taxable year. The election to
	18999	+
	19000	+
	19001	+
	19002	+
	19003	+
	19004	+	SB1963 Enrolled - 528 - LRB103 25648 HLH 51997 b
	19005	+
	19006	+
	19007	+	SB1963 Enrolled- 529 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 529 - LRB103 25648 HLH 51997 b
	19008	+	SB1963 Enrolled - 529 - LRB103 25648 HLH 51997 b
	19009	+	1 pass through the credits shall be irrevocable.
	19010	+	2 For taxable years ending on or after December 31,
	19011	+	3 2000, a partner that qualifies its partnership for a
	19012	+	4 subtraction under subparagraph (I) of paragraph (2) of
	19013	+	5 subsection (d) of Section 203 or a shareholder that
	19014	+	6 qualifies a Subchapter S corporation for a subtraction
	19015	+	7 under subparagraph (S) of paragraph (2) of subsection (b)
	19016	+	8 of Section 203 shall be allowed a credit under this
	19017	+	9 subsection (e) equal to its share of the credit earned
	19018	+	10 under this subsection (e) during the taxable year by the
	19019	+	11 partnership or Subchapter S corporation, determined in
	19020	+	12 accordance with the determination of income and
	19021	+	13 distributive share of income under Sections 702 and 704
	19022	+	14 and Subchapter S of the Internal Revenue Code. This
	19023	+	15 paragraph is exempt from the provisions of Section 250.
	19024	+	16 (f) Investment credit; Enterprise Zone; River Edge
	19025	+	17 Redevelopment Zone.
	19026	+	18 (1) A taxpayer shall be allowed a credit against the
	19027	+	19 tax imposed by subsections (a) and (b) of this Section for
	19028	+	20 investment in qualified property which is placed in
	19029	+	21 service in an Enterprise Zone created pursuant to the
	19030	+	22 Illinois Enterprise Zone Act or, for property placed in
	19031	+	23 service on or after July 1, 2006, a River Edge
	19032	+	24 Redevelopment Zone established pursuant to the River Edge
	19033	+	25 Redevelopment Zone Act. For partners, shareholders of
	19034	+	26 Subchapter S corporations, and owners of limited liability
	19035	+
	19036	+
	19037	+
	19038	+
	19039	+
	19040	+	SB1963 Enrolled - 529 - LRB103 25648 HLH 51997 b
	19041	+
	19042	+
	19043	+	SB1963 Enrolled- 530 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 530 - LRB103 25648 HLH 51997 b
	19044	+	SB1963 Enrolled - 530 - LRB103 25648 HLH 51997 b
	19045	+	1 companies, if the liability company is treated as a
	19046	+	2 partnership for purposes of federal and State income
	19047	+	3 taxation, there shall be allowed a credit under this
	19048	+	4 subsection (f) to be determined in accordance with the
	19049	+	5 determination of income and distributive share of income
	19050	+	6 under Sections 702 and 704 and Subchapter S of the
	19051	+	7 Internal Revenue Code. The credit shall be .5% of the
	19052	+	8 basis for such property. The credit shall be available
	19053	+	9 only in the taxable year in which the property is placed in
	19054	+	10 service in the Enterprise Zone or River Edge Redevelopment
	19055	+	11 Zone and shall not be allowed to the extent that it would
	19056	+	12 reduce a taxpayer's liability for the tax imposed by
	19057	+	13 subsections (a) and (b) of this Section to below zero. For
	19058	+	14 tax years ending on or after December 31, 1985, the credit
	19059	+	15 shall be allowed for the tax year in which the property is
	19060	+	16 placed in service, or, if the amount of the credit exceeds
	19061	+	17 the tax liability for that year, whether it exceeds the
	19062	+	18 original liability or the liability as later amended, such
	19063	+	19 excess may be carried forward and applied to the tax
	19064	+	20 liability of the 5 taxable years following the excess
	19065	+	21 credit year. The credit shall be applied to the earliest
	19066	+	22 year for which there is a liability. If there is credit
	19067	+	23 from more than one tax year that is available to offset a
	19068	+	24 liability, the credit accruing first in time shall be
	19069	+	25 applied first.
	19070	+	26 (2) The term qualified property means property which:
	19071	+
	19072	+
	19073	+
	19074	+
	19075	+
	19076	+	SB1963 Enrolled - 530 - LRB103 25648 HLH 51997 b
	19077	+
	19078	+
	19079	+	SB1963 Enrolled- 531 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 531 - LRB103 25648 HLH 51997 b
	19080	+	SB1963 Enrolled - 531 - LRB103 25648 HLH 51997 b
	19081	+	1 (A) is tangible, whether new or used, including
	19082	+	2 buildings and structural components of buildings;
	19083	+	3 (B) is depreciable pursuant to Section 167 of the
	19084	+	4 Internal Revenue Code, except that "3-year property"
	19085	+	5 as defined in Section 168(c)(2)(A) of that Code is not
	19086	+	6 eligible for the credit provided by this subsection
	19087	+	7 (f);
	19088	+	8 (C) is acquired by purchase as defined in Section
	19089	+	9 179(d) of the Internal Revenue Code;
	19090	+	10 (D) is used in the Enterprise Zone or River Edge
	19091	+	11 Redevelopment Zone by the taxpayer; and
	19092	+	12 (E) has not been previously used in Illinois in
	19093	+	13 such a manner and by such a person as would qualify for
	19094	+	14 the credit provided by this subsection (f) or
	19095	+	15 subsection (e).
	19096	+	16 (3) The basis of qualified property shall be the basis
	19097	+	17 used to compute the depreciation deduction for federal
	19098	+	18 income tax purposes.
	19099	+	19 (4) If the basis of the property for federal income
	19100	+	20 tax depreciation purposes is increased after it has been
	19101	+	21 placed in service in the Enterprise Zone or River Edge
	19102	+	22 Redevelopment Zone by the taxpayer, the amount of such
	19103	+	23 increase shall be deemed property placed in service on the
	19104	+	24 date of such increase in basis.
	19105	+	25 (5) The term "placed in service" shall have the same
	19106	+	26 meaning as under Section 46 of the Internal Revenue Code.
	19107	+
	19108	+
	19109	+
	19110	+
	19111	+
	19112	+	SB1963 Enrolled - 531 - LRB103 25648 HLH 51997 b
	19113	+
	19114	+
	19115	+	SB1963 Enrolled- 532 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 532 - LRB103 25648 HLH 51997 b
	19116	+	SB1963 Enrolled - 532 - LRB103 25648 HLH 51997 b
	19117	+	1 (6) If during any taxable year, any property ceases to
	19118	+	2 be qualified property in the hands of the taxpayer within
	19119	+	3 48 months after being placed in service, or the situs of
	19120	+	4 any qualified property is moved outside the Enterprise
	19121	+	5 Zone or River Edge Redevelopment Zone within 48 months
	19122	+	6 after being placed in service, the tax imposed under
	19123	+	7 subsections (a) and (b) of this Section for such taxable
	19124	+	8 year shall be increased. Such increase shall be determined
	19125	+	9 by (i) recomputing the investment credit which would have
	19126	+	10 been allowed for the year in which credit for such
	19127	+	11 property was originally allowed by eliminating such
	19128	+	12 property from such computation, and (ii) subtracting such
	19129	+	13 recomputed credit from the amount of credit previously
	19130	+	14 allowed. For the purposes of this paragraph (6), a
	19131	+	15 reduction of the basis of qualified property resulting
	19132	+	16 from a redetermination of the purchase price shall be
	19133	+	17 deemed a disposition of qualified property to the extent
	19134	+	18 of such reduction.
	19135	+	19 (7) There shall be allowed an additional credit equal
	19136	+	20 to 0.5% of the basis of qualified property placed in
	19137	+	21 service during the taxable year in a River Edge
	19138	+	22 Redevelopment Zone, provided such property is placed in
	19139	+	23 service on or after July 1, 2006, and the taxpayer's base
	19140	+	24 employment within Illinois has increased by 1% or more
	19141	+	25 over the preceding year as determined by the taxpayer's
	19142	+	26 employment records filed with the Illinois Department of
	19143	+
	19144	+
	19145	+
	19146	+
	19147	+
	19148	+	SB1963 Enrolled - 532 - LRB103 25648 HLH 51997 b
	19149	+
	19150	+
	19151	+	SB1963 Enrolled- 533 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 533 - LRB103 25648 HLH 51997 b
	19152	+	SB1963 Enrolled - 533 - LRB103 25648 HLH 51997 b
	19153	+	1 Employment Security. Taxpayers who are new to Illinois
	19154	+	2 shall be deemed to have met the 1% growth in base
	19155	+	3 employment for the first year in which they file
	19156	+	4 employment records with the Illinois Department of
	19157	+	5 Employment Security. If, in any year, the increase in base
	19158	+	6 employment within Illinois over the preceding year is less
	19159	+	7 than 1%, the additional credit shall be limited to that
	19160	+	8 percentage times a fraction, the numerator of which is
	19161	+	9 0.5% and the denominator of which is 1%, but shall not
	19162	+	10 exceed 0.5%.
	19163	+	11 (8) For taxable years beginning on or after January 1,
	19164	+	12 2021, there shall be allowed an Enterprise Zone
	19165	+	13 construction jobs credit against the taxes imposed under
	19166	+	14 subsections (a) and (b) of this Section as provided in
	19167	+	15 Section 13 of the Illinois Enterprise Zone Act.
	19168	+	16 The credit or credits may not reduce the taxpayer's
	19169	+	17 liability to less than zero. If the amount of the credit or
	19170	+	18 credits exceeds the taxpayer's liability, the excess may
	19171	+	19 be carried forward and applied against the taxpayer's
	19172	+	20 liability in succeeding calendar years in the same manner
	19173	+	21 provided under paragraph (4) of Section 211 of this Act.
	19174	+	22 The credit or credits shall be applied to the earliest
	19175	+	23 year for which there is a tax liability. If there are
	19176	+	24 credits from more than one taxable year that are available
	19177	+	25 to offset a liability, the earlier credit shall be applied
	19178	+	26 first.
	19179	+
	19180	+
	19181	+
	19182	+
	19183	+
	19184	+	SB1963 Enrolled - 533 - LRB103 25648 HLH 51997 b
	19185	+
	19186	+
	19187	+	SB1963 Enrolled- 534 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 534 - LRB103 25648 HLH 51997 b
	19188	+	SB1963 Enrolled - 534 - LRB103 25648 HLH 51997 b
	19189	+	1 For partners, shareholders of Subchapter S
	19190	+	2 corporations, and owners of limited liability companies,
	19191	+	3 if the liability company is treated as a partnership for
	19192	+	4 the purposes of federal and State income taxation, there
	19193	+	5 shall be allowed a credit under this Section to be
	19194	+	6 determined in accordance with the determination of income
	19195	+	7 and distributive share of income under Sections 702 and
	19196	+	8 704 and Subchapter S of the Internal Revenue Code.
	19197	+	9 The total aggregate amount of credits awarded under
	19198	+	10 the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
	19199	+	11 shall not exceed $20,000,000 in any State fiscal year.
	19200	+	12 This paragraph (8) is exempt from the provisions of
	19201	+	13 Section 250.
	19202	+	14 (g) (Blank).
	19203	+	15 (h) Investment credit; High Impact Business.
	19204	+	16 (1) Subject to subsections (b) and (b-5) of Section
	19205	+	17 5.5 of the Illinois Enterprise Zone Act, a taxpayer shall
	19206	+	18 be allowed a credit against the tax imposed by subsections
	19207	+	19 (a) and (b) of this Section for investment in qualified
	19208	+	20 property which is placed in service by a Department of
	19209	+	21 Commerce and Economic Opportunity designated High Impact
	19210	+	22 Business. The credit shall be .5% of the basis for such
	19211	+	23 property. The credit shall not be available (i) until the
	19212	+	24 minimum investments in qualified property set forth in
	19213	+	25 subdivision (a)(3)(A) of Section 5.5 of the Illinois
	19214	+	26 Enterprise Zone Act have been satisfied or (ii) until the
	19215	+
	19216	+
	19217	+
	19218	+
	19219	+
	19220	+	SB1963 Enrolled - 534 - LRB103 25648 HLH 51997 b
	19221	+
	19222	+
	19223	+	SB1963 Enrolled- 535 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 535 - LRB103 25648 HLH 51997 b
	19224	+	SB1963 Enrolled - 535 - LRB103 25648 HLH 51997 b
	19225	+	1 time authorized in subsection (b-5) of the Illinois
	19226	+	2 Enterprise Zone Act for entities designated as High Impact
	19227	+	3 Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
	19228	+	4 (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
	19229	+	5 Act, and shall not be allowed to the extent that it would
	19230	+	6 reduce a taxpayer's liability for the tax imposed by
	19231	+	7 subsections (a) and (b) of this Section to below zero. The
	19232	+	8 credit applicable to such investments shall be taken in
	19233	+	9 the taxable year in which such investments have been
	19234	+	10 completed. The credit for additional investments beyond
	19235	+	11 the minimum investment by a designated high impact
	19236	+	12 business authorized under subdivision (a)(3)(A) of Section
	19237	+	13 5.5 of the Illinois Enterprise Zone Act shall be available
	19238	+	14 only in the taxable year in which the property is placed in
	19239	+	15 service and shall not be allowed to the extent that it
	19240	+	16 would reduce a taxpayer's liability for the tax imposed by
	19241	+	17 subsections (a) and (b) of this Section to below zero. For
	19242	+	18 tax years ending on or after December 31, 1987, the credit
	19243	+	19 shall be allowed for the tax year in which the property is
	19244	+	20 placed in service, or, if the amount of the credit exceeds
	19245	+	21 the tax liability for that year, whether it exceeds the
	19246	+	22 original liability or the liability as later amended, such
	19247	+	23 excess may be carried forward and applied to the tax
	19248	+	24 liability of the 5 taxable years following the excess
	19249	+	25 credit year. The credit shall be applied to the earliest
	19250	+	26 year for which there is a liability. If there is credit
	19251	+
	19252	+
	19253	+
	19254	+
	19255	+
	19256	+	SB1963 Enrolled - 535 - LRB103 25648 HLH 51997 b
	19257	+
	19258	+
	19259	+	SB1963 Enrolled- 536 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 536 - LRB103 25648 HLH 51997 b
	19260	+	SB1963 Enrolled - 536 - LRB103 25648 HLH 51997 b
	19261	+	1 from more than one tax year that is available to offset a
	19262	+	2 liability, the credit accruing first in time shall be
	19263	+	3 applied first.
	19264	+	4 Changes made in this subdivision (h)(1) by Public Act
	19265	+	5 88-670 restore changes made by Public Act 85-1182 and
	19266	+	6 reflect existing law.
	19267	+	7 (2) The term qualified property means property which:
	19268	+	8 (A) is tangible, whether new or used, including
	19269	+	9 buildings and structural components of buildings;
	19270	+	10 (B) is depreciable pursuant to Section 167 of the
	19271	+	11 Internal Revenue Code, except that "3-year property"
	19272	+	12 as defined in Section 168(c)(2)(A) of that Code is not
	19273	+	13 eligible for the credit provided by this subsection
	19274	+	14 (h);
	19275	+	15 (C) is acquired by purchase as defined in Section
	19276	+	16 179(d) of the Internal Revenue Code; and
	19277	+	17 (D) is not eligible for the Enterprise Zone
	19278	+	18 Investment Credit provided by subsection (f) of this
	19279	+	19 Section.
	19280	+	20 (3) The basis of qualified property shall be the basis
	19281	+	21 used to compute the depreciation deduction for federal
	19282	+	22 income tax purposes.
	19283	+	23 (4) If the basis of the property for federal income
	19284	+	24 tax depreciation purposes is increased after it has been
	19285	+	25 placed in service in a federally designated Foreign Trade
	19286	+	26 Zone or Sub-Zone located in Illinois by the taxpayer, the
	19287	+
	19288	+
	19289	+
	19290	+
	19291	+
	19292	+	SB1963 Enrolled - 536 - LRB103 25648 HLH 51997 b
	19293	+
	19294	+
	19295	+	SB1963 Enrolled- 537 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 537 - LRB103 25648 HLH 51997 b
	19296	+	SB1963 Enrolled - 537 - LRB103 25648 HLH 51997 b
	19297	+	1 amount of such increase shall be deemed property placed in
	19298	+	2 service on the date of such increase in basis.
	19299	+	3 (5) The term "placed in service" shall have the same
	19300	+	4 meaning as under Section 46 of the Internal Revenue Code.
	19301	+	5 (6) If during any taxable year ending on or before
	19302	+	6 December 31, 1996, any property ceases to be qualified
	19303	+	7 property in the hands of the taxpayer within 48 months
	19304	+	8 after being placed in service, or the situs of any
	19305	+	9 qualified property is moved outside Illinois within 48
	19306	+	10 months after being placed in service, the tax imposed
	19307	+	11 under subsections (a) and (b) of this Section for such
	19308	+	12 taxable year shall be increased. Such increase shall be
	19309	+	13 determined by (i) recomputing the investment credit which
	19310	+	14 would have been allowed for the year in which credit for
	19311	+	15 such property was originally allowed by eliminating such
	19312	+	16 property from such computation, and (ii) subtracting such
	19313	+	17 recomputed credit from the amount of credit previously
	19314	+	18 allowed. For the purposes of this paragraph (6), a
	19315	+	19 reduction of the basis of qualified property resulting
	19316	+	20 from a redetermination of the purchase price shall be
	19317	+	21 deemed a disposition of qualified property to the extent
	19318	+	22 of such reduction.
	19319	+	23 (7) Beginning with tax years ending after December 31,
	19320	+	24 1996, if a taxpayer qualifies for the credit under this
	19321	+	25 subsection (h) and thereby is granted a tax abatement and
	19322	+	26 the taxpayer relocates its entire facility in violation of
	19323	+
	19324	+
	19325	+
	19326	+
	19327	+
	19328	+	SB1963 Enrolled - 537 - LRB103 25648 HLH 51997 b
	19329	+
	19330	+
	19331	+	SB1963 Enrolled- 538 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 538 - LRB103 25648 HLH 51997 b
	19332	+	SB1963 Enrolled - 538 - LRB103 25648 HLH 51997 b
	19333	+	1 the explicit terms and length of the contract under
	19334	+	2 Section 18-183 of the Property Tax Code, the tax imposed
	19335	+	3 under subsections (a) and (b) of this Section shall be
	19336	+	4 increased for the taxable year in which the taxpayer
	19337	+	5 relocated its facility by an amount equal to the amount of
	19338	+	6 credit received by the taxpayer under this subsection (h).
	19339	+	7 (h-5) High Impact Business construction jobs credit. For
	19340	+	8 taxable years beginning on or after January 1, 2021, there
	19341	+	9 shall also be allowed a High Impact Business construction jobs
	19342	+	10 credit against the tax imposed under subsections (a) and (b)
	19343	+	11 of this Section as provided in subsections (i) and (j) of
	19344	+	12 Section 5.5 of the Illinois Enterprise Zone Act.
	19345	+	13 The credit or credits may not reduce the taxpayer's
	19346	+	14 liability to less than zero. If the amount of the credit or
	19347	+	15 credits exceeds the taxpayer's liability, the excess may be
	19348	+	16 carried forward and applied against the taxpayer's liability
	19349	+	17 in succeeding calendar years in the manner provided under
	19350	+	18 paragraph (4) of Section 211 of this Act. The credit or credits
	19351	+	19 shall be applied to the earliest year for which there is a tax
	19352	+	20 liability. If there are credits from more than one taxable
	19353	+	21 year that are available to offset a liability, the earlier
	19354	+	22 credit shall be applied first.
	19355	+	23 For partners, shareholders of Subchapter S corporations,
	19356	+	24 and owners of limited liability companies, if the liability
	19357	+	25 company is treated as a partnership for the purposes of
	19358	+	26 federal and State income taxation, there shall be allowed a
	19359	+
	19360	+
	19361	+
	19362	+
	19363	+
	19364	+	SB1963 Enrolled - 538 - LRB103 25648 HLH 51997 b
	19365	+
	19366	+
	19367	+	SB1963 Enrolled- 539 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 539 - LRB103 25648 HLH 51997 b
	19368	+	SB1963 Enrolled - 539 - LRB103 25648 HLH 51997 b
	19369	+	1 credit under this Section to be determined in accordance with
	19370	+	2 the determination of income and distributive share of income
	19371	+	3 under Sections 702 and 704 and Subchapter S of the Internal
	19372	+	4 Revenue Code.
	19373	+	5 The total aggregate amount of credits awarded under the
	19374	+	6 Blue Collar Jobs Act (Article 20 of Public Act 101-9) shall not
	19375	+	7 exceed $20,000,000 in any State fiscal year.
	19376	+	8 This subsection (h-5) is exempt from the provisions of
	19377	+	9 Section 250.
	19378	+	10 (i) Credit for Personal Property Tax Replacement Income
	19379	+	11 Tax. For tax years ending prior to December 31, 2003, a credit
	19380	+	12 shall be allowed against the tax imposed by subsections (a)
	19381	+	13 and (b) of this Section for the tax imposed by subsections (c)
	19382	+	14 and (d) of this Section. This credit shall be computed by
	19383	+	15 multiplying the tax imposed by subsections (c) and (d) of this
	19384	+	16 Section by a fraction, the numerator of which is base income
	19385	+	17 allocable to Illinois and the denominator of which is Illinois
	19386	+	18 base income, and further multiplying the product by the tax
	19387	+	19 rate imposed by subsections (a) and (b) of this Section.
	19388	+	20 Any credit earned on or after December 31, 1986 under this
	19389	+	21 subsection which is unused in the year the credit is computed
	19390	+	22 because it exceeds the tax liability imposed by subsections
	19391	+	23 (a) and (b) for that year (whether it exceeds the original
	19392	+	24 liability or the liability as later amended) may be carried
	19393	+	25 forward and applied to the tax liability imposed by
	19394	+	26 subsections (a) and (b) of the 5 taxable years following the
	19395	+
	19396	+
	19397	+
	19398	+
	19399	+
	19400	+	SB1963 Enrolled - 539 - LRB103 25648 HLH 51997 b
	19401	+
	19402	+
	19403	+	SB1963 Enrolled- 540 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 540 - LRB103 25648 HLH 51997 b
	19404	+	SB1963 Enrolled - 540 - LRB103 25648 HLH 51997 b
	19405	+	1 excess credit year, provided that no credit may be carried
	19406	+	2 forward to any year ending on or after December 31, 2003. This
	19407	+	3 credit shall be applied first to the earliest year for which
	19408	+	4 there is a liability. If there is a credit under this
	19409	+	5 subsection from more than one tax year that is available to
	19410	+	6 offset a liability the earliest credit arising under this
	19411	+	7 subsection shall be applied first.
	19412	+	8 If, during any taxable year ending on or after December
	19413	+	9 31, 1986, the tax imposed by subsections (c) and (d) of this
	19414	+	10 Section for which a taxpayer has claimed a credit under this
	19415	+	11 subsection (i) is reduced, the amount of credit for such tax
	19416	+	12 shall also be reduced. Such reduction shall be determined by
	19417	+	13 recomputing the credit to take into account the reduced tax
	19418	+	14 imposed by subsections (c) and (d). If any portion of the
	19419	+	15 reduced amount of credit has been carried to a different
	19420	+	16 taxable year, an amended return shall be filed for such
	19421	+	17 taxable year to reduce the amount of credit claimed.
	19422	+	18 (j) Training expense credit. Beginning with tax years
	19423	+	19 ending on or after December 31, 1986 and prior to December 31,
	19424	+	20 2003, a taxpayer shall be allowed a credit against the tax
	19425	+	21 imposed by subsections (a) and (b) under this Section for all
	19426	+	22 amounts paid or accrued, on behalf of all persons employed by
	19427	+	23 the taxpayer in Illinois or Illinois residents employed
	19428	+	24 outside of Illinois by a taxpayer, for educational or
	19429	+	25 vocational training in semi-technical or technical fields or
	19430	+	26 semi-skilled or skilled fields, which were deducted from gross
	19431	+
	19432	+
	19433	+
	19434	+
	19435	+
	19436	+	SB1963 Enrolled - 540 - LRB103 25648 HLH 51997 b
	19437	+
	19438	+
	19439	+	SB1963 Enrolled- 541 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 541 - LRB103 25648 HLH 51997 b
	19440	+	SB1963 Enrolled - 541 - LRB103 25648 HLH 51997 b
	19441	+	1 income in the computation of taxable income. The credit
	19442	+	2 against the tax imposed by subsections (a) and (b) shall be
	19443	+	3 1.6% of such training expenses. For partners, shareholders of
	19444	+	4 subchapter S corporations, and owners of limited liability
	19445	+	5 companies, if the liability company is treated as a
	19446	+	6 partnership for purposes of federal and State income taxation,
	19447	+	7 there shall be allowed a credit under this subsection (j) to be
	19448	+	8 determined in accordance with the determination of income and
	19449	+	9 distributive share of income under Sections 702 and 704 and
	19450	+	10 subchapter S of the Internal Revenue Code.
	19451	+	11 Any credit allowed under this subsection which is unused
	19452	+	12 in the year the credit is earned may be carried forward to each
	19453	+	13 of the 5 taxable years following the year for which the credit
	19454	+	14 is first computed until it is used. This credit shall be
	19455	+	15 applied first to the earliest year for which there is a
	19456	+	16 liability. If there is a credit under this subsection from
	19457	+	17 more than one tax year that is available to offset a liability,
	19458	+	18 the earliest credit arising under this subsection shall be
	19459	+	19 applied first. No carryforward credit may be claimed in any
	19460	+	20 tax year ending on or after December 31, 2003.
	19461	+	21 (k) Research and development credit. For tax years ending
	19462	+	22 after July 1, 1990 and prior to December 31, 2003, and
	19463	+	23 beginning again for tax years ending on or after December 31,
	19464	+	24 2004, and ending prior to January 1, 2027, a taxpayer shall be
	19465	+	25 allowed a credit against the tax imposed by subsections (a)
	19466	+	26 and (b) of this Section for increasing research activities in
	19467	+
	19468	+
	19469	+
	19470	+
	19471	+
	19472	+	SB1963 Enrolled - 541 - LRB103 25648 HLH 51997 b
	19473	+
	19474	+
	19475	+	SB1963 Enrolled- 542 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 542 - LRB103 25648 HLH 51997 b
	19476	+	SB1963 Enrolled - 542 - LRB103 25648 HLH 51997 b
	19477	+	1 this State. The credit allowed against the tax imposed by
	19478	+	2 subsections (a) and (b) shall be equal to 6 1/2% of the
	19479	+	3 qualifying expenditures for increasing research activities in
	19480	+	4 this State. For partners, shareholders of subchapter S
	19481	+	5 corporations, and owners of limited liability companies, if
	19482	+	6 the liability company is treated as a partnership for purposes
	19483	+	7 of federal and State income taxation, there shall be allowed a
	19484	+	8 credit under this subsection to be determined in accordance
	19485	+	9 with the determination of income and distributive share of
	19486	+	10 income under Sections 702 and 704 and subchapter S of the
	19487	+	11 Internal Revenue Code.
	19488	+	12 For purposes of this subsection, "qualifying expenditures"
	19489	+	13 means the qualifying expenditures as defined for the federal
	19490	+	14 credit for increasing research activities which would be
	19491	+	15 allowable under Section 41 of the Internal Revenue Code and
	19492	+	16 which are conducted in this State, "qualifying expenditures
	19493	+	17 for increasing research activities in this State" means the
	19494	+	18 excess of qualifying expenditures for the taxable year in
	19495	+	19 which incurred over qualifying expenditures for the base
	19496	+	20 period, "qualifying expenditures for the base period" means
	19497	+	21 the average of the qualifying expenditures for each year in
	19498	+	22 the base period, and "base period" means the 3 taxable years
	19499	+	23 immediately preceding the taxable year for which the
	19500	+	24 determination is being made.
	19501	+	25 Any credit in excess of the tax liability for the taxable
	19502	+	26 year may be carried forward. A taxpayer may elect to have the
	19503	+
	19504	+
	19505	+
	19506	+
	19507	+
	19508	+	SB1963 Enrolled - 542 - LRB103 25648 HLH 51997 b
	19509	+
	19510	+
	19511	+	SB1963 Enrolled- 543 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 543 - LRB103 25648 HLH 51997 b
	19512	+	SB1963 Enrolled - 543 - LRB103 25648 HLH 51997 b
	19513	+	1 unused credit shown on its final completed return carried over
	19514	+	2 as a credit against the tax liability for the following 5
	19515	+	3 taxable years or until it has been fully used, whichever
	19516	+	4 occurs first; provided that no credit earned in a tax year
	19517	+	5 ending prior to December 31, 2003 may be carried forward to any
	19518	+	6 year ending on or after December 31, 2003.
	19519	+	7 If an unused credit is carried forward to a given year from
	19520	+	8 2 or more earlier years, that credit arising in the earliest
	19521	+	9 year will be applied first against the tax liability for the
	19522	+	10 given year. If a tax liability for the given year still
	19523	+	11 remains, the credit from the next earliest year will then be
	19524	+	12 applied, and so on, until all credits have been used or no tax
	19525	+	13 liability for the given year remains. Any remaining unused
	19526	+	14 credit or credits then will be carried forward to the next
	19527	+	15 following year in which a tax liability is incurred, except
	19528	+	16 that no credit can be carried forward to a year which is more
	19529	+	17 than 5 years after the year in which the expense for which the
	19530	+	18 credit is given was incurred.
	19531	+	19 No inference shall be drawn from Public Act 91-644 in
	19532	+	20 construing this Section for taxable years beginning before
	19533	+	21 January 1, 1999.
	19534	+	22 It is the intent of the General Assembly that the research
	19535	+	23 and development credit under this subsection (k) shall apply
	19536	+	24 continuously for all tax years ending on or after December 31,
	19537	+	25 2004 and ending prior to January 1, 2027, including, but not
	19538	+	26 limited to, the period beginning on January 1, 2016 and ending
	19539	+
	19540	+
	19541	+
	19542	+
	19543	+
	19544	+	SB1963 Enrolled - 543 - LRB103 25648 HLH 51997 b
	19545	+
	19546	+
	19547	+	SB1963 Enrolled- 544 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 544 - LRB103 25648 HLH 51997 b
	19548	+	SB1963 Enrolled - 544 - LRB103 25648 HLH 51997 b
	19549	+	1 on July 6, 2017 (the effective date of Public Act 100-22). All
	19550	+	2 actions taken in reliance on the continuation of the credit
	19551	+	3 under this subsection (k) by any taxpayer are hereby
	19552	+	4 validated.
	19553	+	5 (l) Environmental Remediation Tax Credit.
	19554	+	6 (i) For tax years ending after December 31, 1997 and
	19555	+	7 on or before December 31, 2001, a taxpayer shall be
	19556	+	8 allowed a credit against the tax imposed by subsections
	19557	+	9 (a) and (b) of this Section for certain amounts paid for
	19558	+	10 unreimbursed eligible remediation costs, as specified in
	19559	+	11 this subsection. For purposes of this Section,
	19560	+	12 "unreimbursed eligible remediation costs" means costs
	19561	+	13 approved by the Illinois Environmental Protection Agency
	19562	+	14 ("Agency") under Section 58.14 of the Environmental
	19563	+	15 Protection Act that were paid in performing environmental
	19564	+	16 remediation at a site for which a No Further Remediation
	19565	+	17 Letter was issued by the Agency and recorded under Section
	19566	+	18 58.10 of the Environmental Protection Act. The credit must
	19567	+	19 be claimed for the taxable year in which Agency approval
	19568	+	20 of the eligible remediation costs is granted. The credit
	19569	+	21 is not available to any taxpayer if the taxpayer or any
	19570	+	22 related party caused or contributed to, in any material
	19571	+	23 respect, a release of regulated substances on, in, or
	19572	+	24 under the site that was identified and addressed by the
	19573	+	25 remedial action pursuant to the Site Remediation Program
	19574	+	26 of the Environmental Protection Act. After the Pollution
	19575	+
	19576	+
	19577	+
	19578	+
	19579	+
	19580	+	SB1963 Enrolled - 544 - LRB103 25648 HLH 51997 b
	19581	+
	19582	+
	19583	+	SB1963 Enrolled- 545 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 545 - LRB103 25648 HLH 51997 b
	19584	+	SB1963 Enrolled - 545 - LRB103 25648 HLH 51997 b
	19585	+	1 Control Board rules are adopted pursuant to the Illinois
	19586	+	2 Administrative Procedure Act for the administration and
	19587	+	3 enforcement of Section 58.9 of the Environmental
	19588	+	4 Protection Act, determinations as to credit availability
	19589	+	5 for purposes of this Section shall be made consistent with
	19590	+	6 those rules. For purposes of this Section, "taxpayer"
	19591	+	7 includes a person whose tax attributes the taxpayer has
	19592	+	8 succeeded to under Section 381 of the Internal Revenue
	19593	+	9 Code and "related party" includes the persons disallowed a
	19594	+	10 deduction for losses by paragraphs (b), (c), and (f)(1) of
	19595	+	11 Section 267 of the Internal Revenue Code by virtue of
	19596	+	12 being a related taxpayer, as well as any of its partners.
	19597	+	13 The credit allowed against the tax imposed by subsections
	19598	+	14 (a) and (b) shall be equal to 25% of the unreimbursed
	19599	+	15 eligible remediation costs in excess of $100,000 per site,
	19600	+	16 except that the $100,000 threshold shall not apply to any
	19601	+	17 site contained in an enterprise zone as determined by the
	19602	+	18 Department of Commerce and Community Affairs (now
	19603	+	19 Department of Commerce and Economic Opportunity). The
	19604	+	20 total credit allowed shall not exceed $40,000 per year
	19605	+	21 with a maximum total of $150,000 per site. For partners
	19606	+	22 and shareholders of subchapter S corporations, there shall
	19607	+	23 be allowed a credit under this subsection to be determined
	19608	+	24 in accordance with the determination of income and
	19609	+	25 distributive share of income under Sections 702 and 704
	19610	+	26 and subchapter S of the Internal Revenue Code.
	19611	+
	19612	+
	19613	+
	19614	+
	19615	+
	19616	+	SB1963 Enrolled - 545 - LRB103 25648 HLH 51997 b
	19617	+
	19618	+
	19619	+	SB1963 Enrolled- 546 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 546 - LRB103 25648 HLH 51997 b
	19620	+	SB1963 Enrolled - 546 - LRB103 25648 HLH 51997 b
	19621	+	1 (ii) A credit allowed under this subsection that is
	19622	+	2 unused in the year the credit is earned may be carried
	19623	+	3 forward to each of the 5 taxable years following the year
	19624	+	4 for which the credit is first earned until it is used. The
	19625	+	5 term "unused credit" does not include any amounts of
	19626	+	6 unreimbursed eligible remediation costs in excess of the
	19627	+	7 maximum credit per site authorized under paragraph (i).
	19628	+	8 This credit shall be applied first to the earliest year
	19629	+	9 for which there is a liability. If there is a credit under
	19630	+	10 this subsection from more than one tax year that is
	19631	+	11 available to offset a liability, the earliest credit
	19632	+	12 arising under this subsection shall be applied first. A
	19633	+	13 credit allowed under this subsection may be sold to a
	19634	+	14 buyer as part of a sale of all or part of the remediation
	19635	+	15 site for which the credit was granted. The purchaser of a
	19636	+	16 remediation site and the tax credit shall succeed to the
	19637	+	17 unused credit and remaining carry-forward period of the
	19638	+	18 seller. To perfect the transfer, the assignor shall record
	19639	+	19 the transfer in the chain of title for the site and provide
	19640	+	20 written notice to the Director of the Illinois Department
	19641	+	21 of Revenue of the assignor's intent to sell the
	19642	+	22 remediation site and the amount of the tax credit to be
	19643	+	23 transferred as a portion of the sale. In no event may a
	19644	+	24 credit be transferred to any taxpayer if the taxpayer or a
	19645	+	25 related party would not be eligible under the provisions
	19646	+	26 of subsection (i).
	19647	+
	19648	+
	19649	+
	19650	+
	19651	+
	19652	+	SB1963 Enrolled - 546 - LRB103 25648 HLH 51997 b
	19653	+
	19654	+
	19655	+	SB1963 Enrolled- 547 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 547 - LRB103 25648 HLH 51997 b
	19656	+	SB1963 Enrolled - 547 - LRB103 25648 HLH 51997 b
	19657	+	1 (iii) For purposes of this Section, the term "site"
	19658	+	2 shall have the same meaning as under Section 58.2 of the
	19659	+	3 Environmental Protection Act.
	19660	+	4 (m) Education expense credit. Beginning with tax years
	19661	+	5 ending after December 31, 1999, a taxpayer who is the
	19662	+	6 custodian of one or more qualifying pupils shall be allowed a
	19663	+	7 credit against the tax imposed by subsections (a) and (b) of
	19664	+	8 this Section for qualified education expenses incurred on
	19665	+	9 behalf of the qualifying pupils. The credit shall be equal to
	19666	+	10 25% of qualified education expenses, but in no event may the
	19667	+	11 total credit under this subsection claimed by a family that is
	19668	+	12 the custodian of qualifying pupils exceed (i) $500 for tax
	19669	+	13 years ending prior to December 31, 2017, and (ii) $750 for tax
	19670	+	14 years ending on or after December 31, 2017. In no event shall a
	19671	+	15 credit under this subsection reduce the taxpayer's liability
	19672	+	16 under this Act to less than zero. Notwithstanding any other
	19673	+	17 provision of law, for taxable years beginning on or after
	19674	+	18 January 1, 2017, no taxpayer may claim a credit under this
	19675	+	19 subsection (m) if the taxpayer's adjusted gross income for the
	19676	+	20 taxable year exceeds (i) $500,000, in the case of spouses
	19677	+	21 filing a joint federal tax return or (ii) $250,000, in the case
	19678	+	22 of all other taxpayers. This subsection is exempt from the
	19679	+	23 provisions of Section 250 of this Act.
	19680	+	24 For purposes of this subsection:
	19681	+	25 "Qualifying pupils" means individuals who (i) are
	19682	+	26 residents of the State of Illinois, (ii) are under the age of
	19683	+
	19684	+
	19685	+
	19686	+
	19687	+
	19688	+	SB1963 Enrolled - 547 - LRB103 25648 HLH 51997 b
	19689	+
	19690	+
	19691	+	SB1963 Enrolled- 548 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 548 - LRB103 25648 HLH 51997 b
	19692	+	SB1963 Enrolled - 548 - LRB103 25648 HLH 51997 b
	19693	+	1 21 at the close of the school year for which a credit is
	19694	+	2 sought, and (iii) during the school year for which a credit is
	19695	+	3 sought were full-time pupils enrolled in a kindergarten
	19696	+	4 through twelfth grade education program at any school, as
	19697	+	5 defined in this subsection.
	19698	+	6 "Qualified education expense" means the amount incurred on
	19699	+	7 behalf of a qualifying pupil in excess of $250 for tuition,
	19700	+	8 book fees, and lab fees at the school in which the pupil is
	19701	+	9 enrolled during the regular school year.
	19702	+	10 "School" means any public or nonpublic elementary or
	19703	+	11 secondary school in Illinois that is in compliance with Title
	19704	+	12 VI of the Civil Rights Act of 1964 and attendance at which
	19705	+	13 satisfies the requirements of Section 26-1 of the School Code,
	19706	+	14 except that nothing shall be construed to require a child to
	19707	+	15 attend any particular public or nonpublic school to qualify
	19708	+	16 for the credit under this Section.
	19709	+	17 "Custodian" means, with respect to qualifying pupils, an
	19710	+	18 Illinois resident who is a parent, the parents, a legal
	19711	+	19 guardian, or the legal guardians of the qualifying pupils.
	19712	+	20 (n) River Edge Redevelopment Zone site remediation tax
	19713	+	21 credit.
	19714	+	22 (i) For tax years ending on or after December 31,
	19715	+	23 2006, a taxpayer shall be allowed a credit against the tax
	19716	+	24 imposed by subsections (a) and (b) of this Section for
	19717	+	25 certain amounts paid for unreimbursed eligible remediation
	19718	+	26 costs, as specified in this subsection. For purposes of
	19719	+
	19720	+
	19721	+
	19722	+
	19723	+
	19724	+	SB1963 Enrolled - 548 - LRB103 25648 HLH 51997 b
	19725	+
	19726	+
	19727	+	SB1963 Enrolled- 549 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 549 - LRB103 25648 HLH 51997 b
	19728	+	SB1963 Enrolled - 549 - LRB103 25648 HLH 51997 b
	19729	+	1 this Section, "unreimbursed eligible remediation costs"
	19730	+	2 means costs approved by the Illinois Environmental
	19731	+	3 Protection Agency ("Agency") under Section 58.14a of the
	19732	+	4 Environmental Protection Act that were paid in performing
	19733	+	5 environmental remediation at a site within a River Edge
	19734	+	6 Redevelopment Zone for which a No Further Remediation
	19735	+	7 Letter was issued by the Agency and recorded under Section
	19736	+	8 58.10 of the Environmental Protection Act. The credit must
	19737	+	9 be claimed for the taxable year in which Agency approval
	19738	+	10 of the eligible remediation costs is granted. The credit
	19739	+	11 is not available to any taxpayer if the taxpayer or any
	19740	+	12 related party caused or contributed to, in any material
	19741	+	13 respect, a release of regulated substances on, in, or
	19742	+	14 under the site that was identified and addressed by the
	19743	+	15 remedial action pursuant to the Site Remediation Program
	19744	+	16 of the Environmental Protection Act. Determinations as to
	19745	+	17 credit availability for purposes of this Section shall be
	19746	+	18 made consistent with rules adopted by the Pollution
	19747	+	19 Control Board pursuant to the Illinois Administrative
	19748	+	20 Procedure Act for the administration and enforcement of
	19749	+	21 Section 58.9 of the Environmental Protection Act. For
	19750	+	22 purposes of this Section, "taxpayer" includes a person
	19751	+	23 whose tax attributes the taxpayer has succeeded to under
	19752	+	24 Section 381 of the Internal Revenue Code and "related
	19753	+	25 party" includes the persons disallowed a deduction for
	19754	+	26 losses by paragraphs (b), (c), and (f)(1) of Section 267
	19755	+
	19756	+
	19757	+
	19758	+
	19759	+
	19760	+	SB1963 Enrolled - 549 - LRB103 25648 HLH 51997 b
	19761	+
	19762	+
	19763	+	SB1963 Enrolled- 550 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 550 - LRB103 25648 HLH 51997 b
	19764	+	SB1963 Enrolled - 550 - LRB103 25648 HLH 51997 b
	19765	+	1 of the Internal Revenue Code by virtue of being a related
	19766	+	2 taxpayer, as well as any of its partners. The credit
	19767	+	3 allowed against the tax imposed by subsections (a) and (b)
	19768	+	4 shall be equal to 25% of the unreimbursed eligible
	19769	+	5 remediation costs in excess of $100,000 per site.
	19770	+	6 (ii) A credit allowed under this subsection that is
	19771	+	7 unused in the year the credit is earned may be carried
	19772	+	8 forward to each of the 5 taxable years following the year
	19773	+	9 for which the credit is first earned until it is used. This
	19774	+	10 credit shall be applied first to the earliest year for
	19775	+	11 which there is a liability. If there is a credit under this
	19776	+	12 subsection from more than one tax year that is available
	19777	+	13 to offset a liability, the earliest credit arising under
	19778	+	14 this subsection shall be applied first. A credit allowed
	19779	+	15 under this subsection may be sold to a buyer as part of a
	19780	+	16 sale of all or part of the remediation site for which the
	19781	+	17 credit was granted. The purchaser of a remediation site
	19782	+	18 and the tax credit shall succeed to the unused credit and
	19783	+	19 remaining carry-forward period of the seller. To perfect
	19784	+	20 the transfer, the assignor shall record the transfer in
	19785	+	21 the chain of title for the site and provide written notice
	19786	+	22 to the Director of the Illinois Department of Revenue of
	19787	+	23 the assignor's intent to sell the remediation site and the
	19788	+	24 amount of the tax credit to be transferred as a portion of
	19789	+	25 the sale. In no event may a credit be transferred to any
	19790	+	26 taxpayer if the taxpayer or a related party would not be
	19791	+
	19792	+
	19793	+
	19794	+
	19795	+
	19796	+	SB1963 Enrolled - 550 - LRB103 25648 HLH 51997 b
	19797	+
	19798	+
	19799	+	SB1963 Enrolled- 551 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 551 - LRB103 25648 HLH 51997 b
	19800	+	SB1963 Enrolled - 551 - LRB103 25648 HLH 51997 b
	19801	+	1 eligible under the provisions of subsection (i).
	19802	+	2 (iii) For purposes of this Section, the term "site"
	19803	+	3 shall have the same meaning as under Section 58.2 of the
	19804	+	4 Environmental Protection Act.
	19805	+	5 (o) For each of taxable years during the Compassionate Use
	19806	+	6 of Medical Cannabis Program, a surcharge is imposed on all
	19807	+	7 taxpayers on income arising from the sale or exchange of
	19808	+	8 capital assets, depreciable business property, real property
	19809	+	9 used in the trade or business, and Section 197 intangibles of
	19810	+	10 an organization registrant under the Compassionate Use of
	19811	+	11 Medical Cannabis Program Act. The amount of the surcharge is
	19812	+	12 equal to the amount of federal income tax liability for the
	19813	+	13 taxable year attributable to those sales and exchanges. The
	19814	+	14 surcharge imposed does not apply if:
	19815	+	15 (1) the medical cannabis cultivation center
	19816	+	16 registration, medical cannabis dispensary registration, or
	19817	+	17 the property of a registration is transferred as a result
	19818	+	18 of any of the following:
	19819	+	19 (A) bankruptcy, a receivership, or a debt
	19820	+	20 adjustment initiated by or against the initial
	19821	+	21 registration or the substantial owners of the initial
	19822	+	22 registration;
	19823	+	23 (B) cancellation, revocation, or termination of
	19824	+	24 any registration by the Illinois Department of Public
	19825	+	25 Health;
	19826	+	26 (C) a determination by the Illinois Department of
	19827	+
	19828	+
	19829	+
	19830	+
	19831	+
	19832	+	SB1963 Enrolled - 551 - LRB103 25648 HLH 51997 b
	19833	+
	19834	+
	19835	+	SB1963 Enrolled- 552 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 552 - LRB103 25648 HLH 51997 b
	19836	+	SB1963 Enrolled - 552 - LRB103 25648 HLH 51997 b
	19837	+	1 Public Health that transfer of the registration is in
	19838	+	2 the best interests of Illinois qualifying patients as
	19839	+	3 defined by the Compassionate Use of Medical Cannabis
	19840	+	4 Program Act;
	19841	+	5 (D) the death of an owner of the equity interest in
	19842	+	6 a registrant;
	19843	+	7 (E) the acquisition of a controlling interest in
	19844	+	8 the stock or substantially all of the assets of a
	19845	+	9 publicly traded company;
	19846	+	10 (F) a transfer by a parent company to a wholly
	19847	+	11 owned subsidiary; or
	19848	+	12 (G) the transfer or sale to or by one person to
	19849	+	13 another person where both persons were initial owners
	19850	+	14 of the registration when the registration was issued;
	19851	+	15 or
	19852	+	16 (2) the cannabis cultivation center registration,
	19853	+	17 medical cannabis dispensary registration, or the
	19854	+	18 controlling interest in a registrant's property is
	19855	+	19 transferred in a transaction to lineal descendants in
	19856	+	20 which no gain or loss is recognized or as a result of a
	19857	+	21 transaction in accordance with Section 351 of the Internal
	19858	+	22 Revenue Code in which no gain or loss is recognized.
	19859	+	23 (p) Pass-through entity tax.
	19860	+	24 (1) For taxable years ending on or after December 31,
	19861	+	25 2021 and beginning prior to January 1, 2026, a partnership
	19862	+	26 (other than a publicly traded partnership under Section
	19863	+
	19864	+
	19865	+
	19866	+
	19867	+
	19868	+	SB1963 Enrolled - 552 - LRB103 25648 HLH 51997 b
	19869	+
	19870	+
	19871	+	SB1963 Enrolled- 553 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 553 - LRB103 25648 HLH 51997 b
	19872	+	SB1963 Enrolled - 553 - LRB103 25648 HLH 51997 b
	19873	+	1 7704 of the Internal Revenue Code) or Subchapter S
	19874	+	2 corporation may elect to apply the provisions of this
	19875	+	3 subsection. A separate election shall be made for each
	19876	+	4 taxable year. Such election shall be made at such time,
	19877	+	5 and in such form and manner as prescribed by the
	19878	+	6 Department, and, once made, is irrevocable.
	19879	+	7 (2) Entity-level tax. A partnership or Subchapter S
	19880	+	8 corporation electing to apply the provisions of this
	19881	+	9 subsection shall be subject to a tax for the privilege of
	19882	+	10 earning or receiving income in this State in an amount
	19883	+	11 equal to 4.95% of the taxpayer's net income for the
	19884	+	12 taxable year.
	19885	+	13 (3) Net income defined.
	19886	+	14 (A) In general. For purposes of paragraph (2), the
	19887	+	15 term net income has the same meaning as defined in
	19888	+	16 Section 202 of this Act, except that, for tax years
	19889	+	17 ending on or after December 31, 2023, a deduction
	19890	+	18 shall be allowed in computing base income for
	19891	+	19 distributions to a retired partner to the extent that
	19892	+	20 the partner's distributions are exempt from tax under
	19893	+	21 Section 203(a)(2)(F) of this Act. In addition, the
	19894	+	22 following modifications provisions shall not apply:
	19895	+	23 (i) the standard exemption allowed under
	19896	+	24 Section 204;
	19897	+	25 (ii) the deduction for net losses allowed
	19898	+	26 under Section 207;
	19899	+
	19900	+
	19901	+
	19902	+
	19903	+
	19904	+	SB1963 Enrolled - 553 - LRB103 25648 HLH 51997 b
	19905	+
	19906	+
	19907	+	SB1963 Enrolled- 554 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 554 - LRB103 25648 HLH 51997 b
	19908	+	SB1963 Enrolled - 554 - LRB103 25648 HLH 51997 b
	19909	+	1 (iii) in the case of an S corporation, the
	19910	+	2 modification under Section 203(b)(2)(S); and
	19911	+	3 (iv) in the case of a partnership, the
	19912	+	4 modifications under Section 203(d)(2)(H) and
	19913	+	5 Section 203(d)(2)(I).
	19914	+	6 (B) Special rule for tiered partnerships. If a
	19915	+	7 taxpayer making the election under paragraph (1) is a
	19916	+	8 partner of another taxpayer making the election under
	19917	+	9 paragraph (1), net income shall be computed as
	19918	+	10 provided in subparagraph (A), except that the taxpayer
	19919	+	11 shall subtract its distributive share of the net
	19920	+	12 income of the electing partnership (including its
	19921	+	13 distributive share of the net income of the electing
	19922	+	14 partnership derived as a distributive share from
	19923	+	15 electing partnerships in which it is a partner).
	19924	+	16 (4) Credit for entity level tax. Each partner or
	19925	+	17 shareholder of a taxpayer making the election under this
	19926	+	18 Section shall be allowed a credit against the tax imposed
	19927	+	19 under subsections (a) and (b) of Section 201 of this Act
	19928	+	20 for the taxable year of the partnership or Subchapter S
	19929	+	21 corporation for which an election is in effect ending
	19930	+	22 within or with the taxable year of the partner or
	19931	+	23 shareholder in an amount equal to 4.95% times the partner
	19932	+	24 or shareholder's distributive share of the net income of
	19933	+	25 the electing partnership or Subchapter S corporation, but
	19934	+	26 not to exceed the partner's or shareholder's share of the
	19935	+
	19936	+
	19937	+
	19938	+
	19939	+
	19940	+	SB1963 Enrolled - 554 - LRB103 25648 HLH 51997 b
	19941	+
	19942	+
	19943	+	SB1963 Enrolled- 555 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 555 - LRB103 25648 HLH 51997 b
	19944	+	SB1963 Enrolled - 555 - LRB103 25648 HLH 51997 b
	19945	+	1 tax imposed under paragraph (1) which is actually paid by
	19946	+	2 the partnership or Subchapter S corporation. If the
	19947	+	3 taxpayer is a partnership or Subchapter S corporation that
	19948	+	4 is itself a partner of a partnership making the election
	19949	+	5 under paragraph (1), the credit under this paragraph shall
	19950	+	6 be allowed to the taxpayer's partners or shareholders (or
	19951	+	7 if the partner is a partnership or Subchapter S
	19952	+	8 corporation then its partners or shareholders) in
	19953	+	9 accordance with the determination of income and
	19954	+	10 distributive share of income under Sections 702 and 704
	19955	+	11 and Subchapter S of the Internal Revenue Code. If the
	19956	+	12 amount of the credit allowed under this paragraph exceeds
	19957	+	13 the partner's or shareholder's liability for tax imposed
	19958	+	14 under subsections (a) and (b) of Section 201 of this Act
	19959	+	15 for the taxable year, such excess shall be treated as an
	19960	+	16 overpayment for purposes of Section 909 of this Act.
	19961	+	17 (5) Nonresidents. A nonresident individual who is a
	19962	+	18 partner or shareholder of a partnership or Subchapter S
	19963	+	19 corporation for a taxable year for which an election is in
	19964	+	20 effect under paragraph (1) shall not be required to file
	19965	+	21 an income tax return under this Act for such taxable year
	19966	+	22 if the only source of net income of the individual (or the
	19967	+	23 individual and the individual's spouse in the case of a
	19968	+	24 joint return) is from an entity making the election under
	19969	+	25 paragraph (1) and the credit allowed to the partner or
	19970	+	26 shareholder under paragraph (4) equals or exceeds the
	19971	+
	19972	+
	19973	+
	19974	+
	19975	+
	19976	+	SB1963 Enrolled - 555 - LRB103 25648 HLH 51997 b
	19977	+
	19978	+
	19979	+	SB1963 Enrolled- 556 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 556 - LRB103 25648 HLH 51997 b
	19980	+	SB1963 Enrolled - 556 - LRB103 25648 HLH 51997 b
	19981	+	1 individual's liability for the tax imposed under
	19982	+	2 subsections (a) and (b) of Section 201 of this Act for the
	19983	+	3 taxable year.
	19984	+	4 (6) Liability for tax. Except as provided in this
	19985	+	5 paragraph, a partnership or Subchapter S making the
	19986	+	6 election under paragraph (1) is liable for the
	19987	+	7 entity-level tax imposed under paragraph (2). If the
	19988	+	8 electing partnership or corporation fails to pay the full
	19989	+	9 amount of tax deemed assessed under paragraph (2), the
	19990	+	10 partners or shareholders shall be liable to pay the tax
	19991	+	11 assessed (including penalties and interest). Each partner
	19992	+	12 or shareholder shall be liable for the unpaid assessment
	19993	+	13 based on the ratio of the partner's or shareholder's share
	19994	+	14 of the net income of the partnership over the total net
	19995	+	15 income of the partnership. If the partnership or
	19996	+	16 Subchapter S corporation fails to pay the tax assessed
	19997	+	17 (including penalties and interest) and thereafter an
	19998	+	18 amount of such tax is paid by the partners or
	19999	+	19 shareholders, such amount shall not be collected from the
	20000	+	20 partnership or corporation.
	20001	+	21 (7) Foreign tax. For purposes of the credit allowed
	20002	+	22 under Section 601(b)(3) of this Act, tax paid by a
	20003	+	23 partnership or Subchapter S corporation to another state
	20004	+	24 which, as determined by the Department, is substantially
	20005	+	25 similar to the tax imposed under this subsection, shall be
	20006	+	26 considered tax paid by the partner or shareholder to the
	20007	+
	20008	+
	20009	+
	20010	+
	20011	+
	20012	+	SB1963 Enrolled - 556 - LRB103 25648 HLH 51997 b
	20013	+
	20014	+
	20015	+	SB1963 Enrolled- 557 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 557 - LRB103 25648 HLH 51997 b
	20016	+	SB1963 Enrolled - 557 - LRB103 25648 HLH 51997 b
	20017	+	1 extent that the partner's or shareholder's share of the
	20018	+	2 income of the partnership or Subchapter S corporation
	20019	+	3 allocated and apportioned to such other state bears to the
	20020	+	4 total income of the partnership or Subchapter S
	20021	+	5 corporation allocated or apportioned to such other state.
	20022	+	6 (8) Suspension of withholding. The provisions of
	20023	+	7 Section 709.5 of this Act shall not apply to a partnership
	20024	+	8 or Subchapter S corporation for the taxable year for which
	20025	+	9 an election under paragraph (1) is in effect.
	20026	+	10 (9) Requirement to pay estimated tax. For each taxable
	20027	+	11 year for which an election under paragraph (1) is in
	20028	+	12 effect, a partnership or Subchapter S corporation is
	20029	+	13 required to pay estimated tax for such taxable year under
	20030	+	14 Sections 803 and 804 of this Act if the amount payable as
	20031	+	15 estimated tax can reasonably be expected to exceed $500.
	20032	+	16 (10) The provisions of this subsection shall apply
	20033	+	17 only with respect to taxable years for which the
	20034	+	18 limitation on individual deductions applies under Section
	20035	+	19 164(b)(6) of the Internal Revenue Code.
	20036	+	20 (Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
	20037	+	21 101-207, eff. 8-2-19; 101-363, eff. 8-9-19; 102-558, eff.
	20038	+	22 8-20-21; 102-658, eff. 8-27-21.)
	20039	+	23 ARTICLE 995. NON-ACCELERATION
	20040	+	24 Section 995-95. No acceleration or delay. Where this Act
	20041	+
	20042	+
	20043	+
	20044	+
	20045	+
	20046	+	SB1963 Enrolled - 557 - LRB103 25648 HLH 51997 b
	20047	+
	20048	+
	20049	+	SB1963 Enrolled- 558 -LRB103 25648 HLH 51997 b SB1963 Enrolled - 558 - LRB103 25648 HLH 51997 b
	20050	+	SB1963 Enrolled - 558 - LRB103 25648 HLH 51997 b
	20051	+	1 makes changes in a statute that is represented in this Act by
	20052	+	2 text that is not yet or no longer in effect (for example, a
	20053	+	3 Section represented by multiple versions), the use of that
	20054	+	4 text does not accelerate or delay the taking effect of (i) the
	20055	+	5 changes made by this Act or (ii) provisions derived from any
	20056	+	6 other Public Act.
	20057	+	7 ARTICLE 999. EFFECTIVE DATE
	20058	+	8 Section 999-99. Effective date. This Act takes effect upon
	20059	+	9 becoming law, except that Article 20 takes effect on July 1,
	20060	+	10 2023 and Articles 55 and 100 take effect on January 1, 2024.
	20061	+
	20062	+
	20063	+
	20064	+
	20065	+
	20066	+	SB1963 Enrolled - 558 - LRB103 25648 HLH 51997 b