Illinois 2023-2024 Regular Session

Illinois Senate Bill SB2857 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2857 Introduced 1/19/2024, by Sen. Ann Gillespie SYNOPSIS AS INTRODUCED: See Index Amends the Property Tax Code. Provides that certain property may be certified by the Department of Commerce and Economic Opportunity as containing a megaproject. Provides that a "megaproject" is a project that meets certain investment and job creation specifications. Provides that the megaproject property is eligible for an assessment freeze. Provides that megaproject property may be granted an abatement. Provides that a company that operates a megaproject shall enter into an agreement with the municipality in which the project is located and other local taxing districts to make certain special payments. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that qualified tangible personal property used in the construction or development of a megaproject is exempt from the taxes imposed under those Acts. Effective June 1, 2024. LRB103 36897 HLH 67010 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2857 Introduced 1/19/2024, by Sen. Ann Gillespie SYNOPSIS AS INTRODUCED: See Index See Index Amends the Property Tax Code. Provides that certain property may be certified by the Department of Commerce and Economic Opportunity as containing a megaproject. Provides that a "megaproject" is a project that meets certain investment and job creation specifications. Provides that the megaproject property is eligible for an assessment freeze. Provides that megaproject property may be granted an abatement. Provides that a company that operates a megaproject shall enter into an agreement with the municipality in which the project is located and other local taxing districts to make certain special payments. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that qualified tangible personal property used in the construction or development of a megaproject is exempt from the taxes imposed under those Acts. Effective June 1, 2024. LRB103 36897 HLH 67010 b LRB103 36897 HLH 67010 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2857 Introduced 1/19/2024, by Sen. Ann Gillespie SYNOPSIS AS INTRODUCED:
3	3	See Index See Index
4	4	See Index
5	5	Amends the Property Tax Code. Provides that certain property may be certified by the Department of Commerce and Economic Opportunity as containing a megaproject. Provides that a "megaproject" is a project that meets certain investment and job creation specifications. Provides that the megaproject property is eligible for an assessment freeze. Provides that megaproject property may be granted an abatement. Provides that a company that operates a megaproject shall enter into an agreement with the municipality in which the project is located and other local taxing districts to make certain special payments. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that qualified tangible personal property used in the construction or development of a megaproject is exempt from the taxes imposed under those Acts. Effective June 1, 2024.
6	6	LRB103 36897 HLH 67010 b LRB103 36897 HLH 67010 b
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8	8	A BILL FOR
9	9	SB2857LRB103 36897 HLH 67010 b SB2857 LRB103 36897 HLH 67010 b
10	10	SB2857 LRB103 36897 HLH 67010 b
11	11	1 AN ACT concerning revenue.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Use Tax Act is amended by changing Section
15	15	5 3-5 as follows:
16	16	6 (35 ILCS 105/3-5)
17	17	7 Sec. 3-5. Exemptions. Use of the following tangible
18	18	8 personal property is exempt from the tax imposed by this Act:
19	19	9 (1) Personal property purchased from a corporation,
20	20	10 society, association, foundation, institution, or
21	21	11 organization, other than a limited liability company, that is
22	22	12 organized and operated as a not-for-profit service enterprise
23	23	13 for the benefit of persons 65 years of age or older if the
24	24	14 personal property was not purchased by the enterprise for the
25	25	15 purpose of resale by the enterprise.
26	26	16 (2) Personal property purchased by a not-for-profit
27	27	17 Illinois county fair association for use in conducting,
28	28	18 operating, or promoting the county fair.
29	29	19 (3) Personal property purchased by a not-for-profit arts
30	30	20 or cultural organization that establishes, by proof required
31	31	21 by the Department by rule, that it has received an exemption
32	32	22 under Section 501(c)(3) of the Internal Revenue Code and that
33	33	23 is organized and operated primarily for the presentation or
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37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2857 Introduced 1/19/2024, by Sen. Ann Gillespie SYNOPSIS AS INTRODUCED:
38	38	See Index See Index
39	39	See Index
40	40	Amends the Property Tax Code. Provides that certain property may be certified by the Department of Commerce and Economic Opportunity as containing a megaproject. Provides that a "megaproject" is a project that meets certain investment and job creation specifications. Provides that the megaproject property is eligible for an assessment freeze. Provides that megaproject property may be granted an abatement. Provides that a company that operates a megaproject shall enter into an agreement with the municipality in which the project is located and other local taxing districts to make certain special payments. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that qualified tangible personal property used in the construction or development of a megaproject is exempt from the taxes imposed under those Acts. Effective June 1, 2024.
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43	43	A BILL FOR
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49	49	See Index
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68	68	1 support of arts or cultural programming, activities, or
69	69	2 services. These organizations include, but are not limited to,
70	70	3 music and dramatic arts organizations such as symphony
71	71	4 orchestras and theatrical groups, arts and cultural service
72	72	5 organizations, local arts councils, visual arts organizations,
73	73	6 and media arts organizations. On and after July 1, 2001 (the
74	74	7 effective date of Public Act 92-35), however, an entity
75	75	8 otherwise eligible for this exemption shall not make tax-free
76	76	9 purchases unless it has an active identification number issued
77	77	10 by the Department.
78	78	11 (4) Except as otherwise provided in this Act, personal
79	79	12 property purchased by a governmental body, by a corporation,
80	80	13 society, association, foundation, or institution organized and
81	81	14 operated exclusively for charitable, religious, or educational
82	82	15 purposes, or by a not-for-profit corporation, society,
83	83	16 association, foundation, institution, or organization that has
84	84	17 no compensated officers or employees and that is organized and
85	85	18 operated primarily for the recreation of persons 55 years of
86	86	19 age or older. A limited liability company may qualify for the
87	87	20 exemption under this paragraph only if the limited liability
88	88	21 company is organized and operated exclusively for educational
89	89	22 purposes. On and after July 1, 1987, however, no entity
90	90	23 otherwise eligible for this exemption shall make tax-free
91	91	24 purchases unless it has an active exemption identification
92	92	25 number issued by the Department.
93	93	26 (5) Until July 1, 2003, a passenger car that is a
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104	104	1 replacement vehicle to the extent that the purchase price of
105	105	2 the car is subject to the Replacement Vehicle Tax.
106	106	3 (6) Until July 1, 2003 and beginning again on September 1,
107	107	4 2004 through August 30, 2014, graphic arts machinery and
108	108	5 equipment, including repair and replacement parts, both new
109	109	6 and used, and including that manufactured on special order,
110	110	7 certified by the purchaser to be used primarily for graphic
111	111	8 arts production, and including machinery and equipment
112	112	9 purchased for lease. Equipment includes chemicals or chemicals
113	113	10 acting as catalysts but only if the chemicals or chemicals
114	114	11 acting as catalysts effect a direct and immediate change upon
115	115	12 a graphic arts product. Beginning on July 1, 2017, graphic
116	116	13 arts machinery and equipment is included in the manufacturing
117	117	14 and assembling machinery and equipment exemption under
118	118	15 paragraph (18).
119	119	16 (7) Farm chemicals.
120	120	17 (8) Legal tender, currency, medallions, or gold or silver
121	121	18 coinage issued by the State of Illinois, the government of the
122	122	19 United States of America, or the government of any foreign
123	123	20 country, and bullion.
124	124	21 (9) Personal property purchased from a teacher-sponsored
125	125	22 student organization affiliated with an elementary or
126	126	23 secondary school located in Illinois.
127	127	24 (10) A motor vehicle that is used for automobile renting,
128	128	25 as defined in the Automobile Renting Occupation and Use Tax
129	129	26 Act.
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140	140	1 (11) Farm machinery and equipment, both new and used,
141	141	2 including that manufactured on special order, certified by the
142	142	3 purchaser to be used primarily for production agriculture or
143	143	4 State or federal agricultural programs, including individual
144	144	5 replacement parts for the machinery and equipment, including
145	145	6 machinery and equipment purchased for lease, and including
146	146	7 implements of husbandry defined in Section 1-130 of the
147	147	8 Illinois Vehicle Code, farm machinery and agricultural
148	148	9 chemical and fertilizer spreaders, and nurse wagons required
149	149	10 to be registered under Section 3-809 of the Illinois Vehicle
150	150	11 Code, but excluding other motor vehicles required to be
151	151	12 registered under the Illinois Vehicle Code. Horticultural
152	152	13 polyhouses or hoop houses used for propagating, growing, or
153	153	14 overwintering plants shall be considered farm machinery and
154	154	15 equipment under this item (11). Agricultural chemical tender
155	155	16 tanks and dry boxes shall include units sold separately from a
156	156	17 motor vehicle required to be licensed and units sold mounted
157	157	18 on a motor vehicle required to be licensed if the selling price
158	158	19 of the tender is separately stated.
159	159	20 Farm machinery and equipment shall include precision
160	160	21 farming equipment that is installed or purchased to be
161	161	22 installed on farm machinery and equipment, including, but not
162	162	23 limited to, tractors, harvesters, sprayers, planters, seeders,
163	163	24 or spreaders. Precision farming equipment includes, but is not
164	164	25 limited to, soil testing sensors, computers, monitors,
165	165	26 software, global positioning and mapping systems, and other
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176	176	1 such equipment.
177	177	2 Farm machinery and equipment also includes computers,
178	178	3 sensors, software, and related equipment used primarily in the
179	179	4 computer-assisted operation of production agriculture
180	180	5 facilities, equipment, and activities such as, but not limited
181	181	6 to, the collection, monitoring, and correlation of animal and
182	182	7 crop data for the purpose of formulating animal diets and
183	183	8 agricultural chemicals.
184	184	9 Beginning on January 1, 2024, farm machinery and equipment
185	185	10 also includes electrical power generation equipment used
186	186	11 primarily for production agriculture.
187	187	12 This item (11) is exempt from the provisions of Section
188	188	13 3-90.
189	189	14 (12) Until June 30, 2013, fuel and petroleum products sold
190	190	15 to or used by an air common carrier, certified by the carrier
191	191	16 to be used for consumption, shipment, or storage in the
192	192	17 conduct of its business as an air common carrier, for a flight
193	193	18 destined for or returning from a location or locations outside
194	194	19 the United States without regard to previous or subsequent
195	195	20 domestic stopovers.
196	196	21 Beginning July 1, 2013, fuel and petroleum products sold
197	197	22 to or used by an air carrier, certified by the carrier to be
198	198	23 used for consumption, shipment, or storage in the conduct of
199	199	24 its business as an air common carrier, for a flight that (i) is
200	200	25 engaged in foreign trade or is engaged in trade between the
201	201	26 United States and any of its possessions and (ii) transports
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212	212	1 at least one individual or package for hire from the city of
213	213	2 origination to the city of final destination on the same
214	214	3 aircraft, without regard to a change in the flight number of
215	215	4 that aircraft.
216	216	5 (13) Proceeds of mandatory service charges separately
217	217	6 stated on customers' bills for the purchase and consumption of
218	218	7 food and beverages purchased at retail from a retailer, to the
219	219	8 extent that the proceeds of the service charge are in fact
220	220	9 turned over as tips or as a substitute for tips to the
221	221	10 employees who participate directly in preparing, serving,
222	222	11 hosting or cleaning up the food or beverage function with
223	223	12 respect to which the service charge is imposed.
224	224	13 (14) Until July 1, 2003, oil field exploration, drilling,
225	225	14 and production equipment, including (i) rigs and parts of
226	226	15 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
227	227	16 pipe and tubular goods, including casing and drill strings,
228	228	17 (iii) pumps and pump-jack units, (iv) storage tanks and flow
229	229	18 lines, (v) any individual replacement part for oil field
230	230	19 exploration, drilling, and production equipment, and (vi)
231	231	20 machinery and equipment purchased for lease; but excluding
232	232	21 motor vehicles required to be registered under the Illinois
233	233	22 Vehicle Code.
234	234	23 (15) Photoprocessing machinery and equipment, including
235	235	24 repair and replacement parts, both new and used, including
236	236	25 that manufactured on special order, certified by the purchaser
237	237	26 to be used primarily for photoprocessing, and including
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248	248	1 photoprocessing machinery and equipment purchased for lease.
249	249	2 (16) Until July 1, 2028, coal and aggregate exploration,
250	250	3 mining, off-highway hauling, processing, maintenance, and
251	251	4 reclamation equipment, including replacement parts and
252	252	5 equipment, and including equipment purchased for lease, but
253	253	6 excluding motor vehicles required to be registered under the
254	254	7 Illinois Vehicle Code. The changes made to this Section by
255	255	8 Public Act 97-767 apply on and after July 1, 2003, but no claim
256	256	9 for credit or refund is allowed on or after August 16, 2013
257	257	10 (the effective date of Public Act 98-456) for such taxes paid
258	258	11 during the period beginning July 1, 2003 and ending on August
259	259	12 16, 2013 (the effective date of Public Act 98-456).
260	260	13 (17) Until July 1, 2003, distillation machinery and
261	261	14 equipment, sold as a unit or kit, assembled or installed by the
262	262	15 retailer, certified by the user to be used only for the
263	263	16 production of ethyl alcohol that will be used for consumption
264	264	17 as motor fuel or as a component of motor fuel for the personal
265	265	18 use of the user, and not subject to sale or resale.
266	266	19 (18) Manufacturing and assembling machinery and equipment
267	267	20 used primarily in the process of manufacturing or assembling
268	268	21 tangible personal property for wholesale or retail sale or
269	269	22 lease, whether that sale or lease is made directly by the
270	270	23 manufacturer or by some other person, whether the materials
271	271	24 used in the process are owned by the manufacturer or some other
272	272	25 person, or whether that sale or lease is made apart from or as
273	273	26 an incident to the seller's engaging in the service occupation
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284	284	1 of producing machines, tools, dies, jigs, patterns, gauges, or
285	285	2 other similar items of no commercial value on special order
286	286	3 for a particular purchaser. The exemption provided by this
287	287	4 paragraph (18) includes production related tangible personal
288	288	5 property, as defined in Section 3-50, purchased on or after
289	289	6 July 1, 2019. The exemption provided by this paragraph (18)
290	290	7 does not include machinery and equipment used in (i) the
291	291	8 generation of electricity for wholesale or retail sale; (ii)
292	292	9 the generation or treatment of natural or artificial gas for
293	293	10 wholesale or retail sale that is delivered to customers
294	294	11 through pipes, pipelines, or mains; or (iii) the treatment of
295	295	12 water for wholesale or retail sale that is delivered to
296	296	13 customers through pipes, pipelines, or mains. The provisions
297	297	14 of Public Act 98-583 are declaratory of existing law as to the
298	298	15 meaning and scope of this exemption. Beginning on July 1,
299	299	16 2017, the exemption provided by this paragraph (18) includes,
300	300	17 but is not limited to, graphic arts machinery and equipment,
301	301	18 as defined in paragraph (6) of this Section.
302	302	19 (19) Personal property delivered to a purchaser or
303	303	20 purchaser's donee inside Illinois when the purchase order for
304	304	21 that personal property was received by a florist located
305	305	22 outside Illinois who has a florist located inside Illinois
306	306	23 deliver the personal property.
307	307	24 (20) Semen used for artificial insemination of livestock
308	308	25 for direct agricultural production.
309	309	26 (21) Horses, or interests in horses, registered with and
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320	320	1 meeting the requirements of any of the Arabian Horse Club
321	321	2 Registry of America, Appaloosa Horse Club, American Quarter
322	322	3 Horse Association, United States Trotting Association, or
323	323	4 Jockey Club, as appropriate, used for purposes of breeding or
324	324	5 racing for prizes. This item (21) is exempt from the
325	325	6 provisions of Section 3-90, and the exemption provided for
326	326	7 under this item (21) applies for all periods beginning May 30,
327	327	8 1995, but no claim for credit or refund is allowed on or after
328	328	9 January 1, 2008 for such taxes paid during the period
329	329	10 beginning May 30, 2000 and ending on January 1, 2008.
330	330	11 (22) Computers and communications equipment utilized for
331	331	12 any hospital purpose and equipment used in the diagnosis,
332	332	13 analysis, or treatment of hospital patients purchased by a
333	333	14 lessor who leases the equipment, under a lease of one year or
334	334	15 longer executed or in effect at the time the lessor would
335	335	16 otherwise be subject to the tax imposed by this Act, to a
336	336	17 hospital that has been issued an active tax exemption
337	337	18 identification number by the Department under Section 1g of
338	338	19 the Retailers' Occupation Tax Act. If the equipment is leased
339	339	20 in a manner that does not qualify for this exemption or is used
340	340	21 in any other non-exempt manner, the lessor shall be liable for
341	341	22 the tax imposed under this Act or the Service Use Tax Act, as
342	342	23 the case may be, based on the fair market value of the property
343	343	24 at the time the non-qualifying use occurs. No lessor shall
344	344	25 collect or attempt to collect an amount (however designated)
345	345	26 that purports to reimburse that lessor for the tax imposed by
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356	356	1 this Act or the Service Use Tax Act, as the case may be, if the
357	357	2 tax has not been paid by the lessor. If a lessor improperly
358	358	3 collects any such amount from the lessee, the lessee shall
359	359	4 have a legal right to claim a refund of that amount from the
360	360	5 lessor. If, however, that amount is not refunded to the lessee
361	361	6 for any reason, the lessor is liable to pay that amount to the
362	362	7 Department.
363	363	8 (23) Personal property purchased by a lessor who leases
364	364	9 the property, under a lease of one year or longer executed or
365	365	10 in effect at the time the lessor would otherwise be subject to
366	366	11 the tax imposed by this Act, to a governmental body that has
367	367	12 been issued an active sales tax exemption identification
368	368	13 number by the Department under Section 1g of the Retailers'
369	369	14 Occupation Tax Act. If the property is leased in a manner that
370	370	15 does not qualify for this exemption or used in any other
371	371	16 non-exempt manner, the lessor shall be liable for the tax
372	372	17 imposed under this Act or the Service Use Tax Act, as the case
373	373	18 may be, based on the fair market value of the property at the
374	374	19 time the non-qualifying use occurs. No lessor shall collect or
375	375	20 attempt to collect an amount (however designated) that
376	376	21 purports to reimburse that lessor for the tax imposed by this
377	377	22 Act or the Service Use Tax Act, as the case may be, if the tax
378	378	23 has not been paid by the lessor. If a lessor improperly
379	379	24 collects any such amount from the lessee, the lessee shall
380	380	25 have a legal right to claim a refund of that amount from the
381	381	26 lessor. If, however, that amount is not refunded to the lessee
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392	392	1 for any reason, the lessor is liable to pay that amount to the
393	393	2 Department.
394	394	3 (24) Beginning with taxable years ending on or after
395	395	4 December 31, 1995 and ending with taxable years ending on or
396	396	5 before December 31, 2004, personal property that is donated
397	397	6 for disaster relief to be used in a State or federally declared
398	398	7 disaster area in Illinois or bordering Illinois by a
399	399	8 manufacturer or retailer that is registered in this State to a
400	400	9 corporation, society, association, foundation, or institution
401	401	10 that has been issued a sales tax exemption identification
402	402	11 number by the Department that assists victims of the disaster
403	403	12 who reside within the declared disaster area.
404	404	13 (25) Beginning with taxable years ending on or after
405	405	14 December 31, 1995 and ending with taxable years ending on or
406	406	15 before December 31, 2004, personal property that is used in
407	407	16 the performance of infrastructure repairs in this State,
408	408	17 including, but not limited to, municipal roads and streets,
409	409	18 access roads, bridges, sidewalks, waste disposal systems,
410	410	19 water and sewer line extensions, water distribution and
411	411	20 purification facilities, storm water drainage and retention
412	412	21 facilities, and sewage treatment facilities, resulting from a
413	413	22 State or federally declared disaster in Illinois or bordering
414	414	23 Illinois when such repairs are initiated on facilities located
415	415	24 in the declared disaster area within 6 months after the
416	416	25 disaster.
417	417	26 (26) Beginning July 1, 1999, game or game birds purchased
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428	428	1 at a "game breeding and hunting preserve area" as that term is
429	429	2 used in the Wildlife Code. This paragraph is exempt from the
430	430	3 provisions of Section 3-90.
431	431	4 (27) A motor vehicle, as that term is defined in Section
432	432	5 1-146 of the Illinois Vehicle Code, that is donated to a
433	433	6 corporation, limited liability company, society, association,
434	434	7 foundation, or institution that is determined by the
435	435	8 Department to be organized and operated exclusively for
436	436	9 educational purposes. For purposes of this exemption, "a
437	437	10 corporation, limited liability company, society, association,
438	438	11 foundation, or institution organized and operated exclusively
439	439	12 for educational purposes" means all tax-supported public
440	440	13 schools, private schools that offer systematic instruction in
441	441	14 useful branches of learning by methods common to public
442	442	15 schools and that compare favorably in their scope and
443	443	16 intensity with the course of study presented in tax-supported
444	444	17 schools, and vocational or technical schools or institutes
445	445	18 organized and operated exclusively to provide a course of
446	446	19 study of not less than 6 weeks duration and designed to prepare
447	447	20 individuals to follow a trade or to pursue a manual,
448	448	21 technical, mechanical, industrial, business, or commercial
449	449	22 occupation.
450	450	23 (28) Beginning January 1, 2000, personal property,
451	451	24 including food, purchased through fundraising events for the
452	452	25 benefit of a public or private elementary or secondary school,
453	453	26 a group of those schools, or one or more school districts if
454	454
455	455
456	456
457	457
458	458
459	459	SB2857 - 12 - LRB103 36897 HLH 67010 b
460	460
461	461
462	462	SB2857- 13 -LRB103 36897 HLH 67010 b SB2857 - 13 - LRB103 36897 HLH 67010 b
463	463	SB2857 - 13 - LRB103 36897 HLH 67010 b
464	464	1 the events are sponsored by an entity recognized by the school
465	465	2 district that consists primarily of volunteers and includes
466	466	3 parents and teachers of the school children. This paragraph
467	467	4 does not apply to fundraising events (i) for the benefit of
468	468	5 private home instruction or (ii) for which the fundraising
469	469	6 entity purchases the personal property sold at the events from
470	470	7 another individual or entity that sold the property for the
471	471	8 purpose of resale by the fundraising entity and that profits
472	472	9 from the sale to the fundraising entity. This paragraph is
473	473	10 exempt from the provisions of Section 3-90.
474	474	11 (29) Beginning January 1, 2000 and through December 31,
475	475	12 2001, new or used automatic vending machines that prepare and
476	476	13 serve hot food and beverages, including coffee, soup, and
477	477	14 other items, and replacement parts for these machines.
478	478	15 Beginning January 1, 2002 and through June 30, 2003, machines
479	479	16 and parts for machines used in commercial, coin-operated
480	480	17 amusement and vending business if a use or occupation tax is
481	481	18 paid on the gross receipts derived from the use of the
482	482	19 commercial, coin-operated amusement and vending machines. This
483	483	20 paragraph is exempt from the provisions of Section 3-90.
484	484	21 (30) Beginning January 1, 2001 and through June 30, 2016,
485	485	22 food for human consumption that is to be consumed off the
486	486	23 premises where it is sold (other than alcoholic beverages,
487	487	24 soft drinks, and food that has been prepared for immediate
488	488	25 consumption) and prescription and nonprescription medicines,
489	489	26 drugs, medical appliances, and insulin, urine testing
490	490
491	491
492	492
493	493
494	494
495	495	SB2857 - 13 - LRB103 36897 HLH 67010 b
496	496
497	497
498	498	SB2857- 14 -LRB103 36897 HLH 67010 b SB2857 - 14 - LRB103 36897 HLH 67010 b
499	499	SB2857 - 14 - LRB103 36897 HLH 67010 b
500	500	1 materials, syringes, and needles used by diabetics, for human
501	501	2 use, when purchased for use by a person receiving medical
502	502	3 assistance under Article V of the Illinois Public Aid Code who
503	503	4 resides in a licensed long-term care facility, as defined in
504	504	5 the Nursing Home Care Act, or in a licensed facility as defined
505	505	6 in the ID/DD Community Care Act, the MC/DD Act, or the
506	506	7 Specialized Mental Health Rehabilitation Act of 2013.
507	507	8 (31) Beginning on August 2, 2001 (the effective date of
508	508	9 Public Act 92-227), computers and communications equipment
509	509	10 utilized for any hospital purpose and equipment used in the
510	510	11 diagnosis, analysis, or treatment of hospital patients
511	511	12 purchased by a lessor who leases the equipment, under a lease
512	512	13 of one year or longer executed or in effect at the time the
513	513	14 lessor would otherwise be subject to the tax imposed by this
514	514	15 Act, to a hospital that has been issued an active tax exemption
515	515	16 identification number by the Department under Section 1g of
516	516	17 the Retailers' Occupation Tax Act. If the equipment is leased
517	517	18 in a manner that does not qualify for this exemption or is used
518	518	19 in any other nonexempt manner, the lessor shall be liable for
519	519	20 the tax imposed under this Act or the Service Use Tax Act, as
520	520	21 the case may be, based on the fair market value of the property
521	521	22 at the time the nonqualifying use occurs. No lessor shall
522	522	23 collect or attempt to collect an amount (however designated)
523	523	24 that purports to reimburse that lessor for the tax imposed by
524	524	25 this Act or the Service Use Tax Act, as the case may be, if the
525	525	26 tax has not been paid by the lessor. If a lessor improperly
526	526
527	527
528	528
529	529
530	530
531	531	SB2857 - 14 - LRB103 36897 HLH 67010 b
532	532
533	533
534	534	SB2857- 15 -LRB103 36897 HLH 67010 b SB2857 - 15 - LRB103 36897 HLH 67010 b
535	535	SB2857 - 15 - LRB103 36897 HLH 67010 b
536	536	1 collects any such amount from the lessee, the lessee shall
537	537	2 have a legal right to claim a refund of that amount from the
538	538	3 lessor. If, however, that amount is not refunded to the lessee
539	539	4 for any reason, the lessor is liable to pay that amount to the
540	540	5 Department. This paragraph is exempt from the provisions of
541	541	6 Section 3-90.
542	542	7 (32) Beginning on August 2, 2001 (the effective date of
543	543	8 Public Act 92-227), personal property purchased by a lessor
544	544	9 who leases the property, under a lease of one year or longer
545	545	10 executed or in effect at the time the lessor would otherwise be
546	546	11 subject to the tax imposed by this Act, to a governmental body
547	547	12 that has been issued an active sales tax exemption
548	548	13 identification number by the Department under Section 1g of
549	549	14 the Retailers' Occupation Tax Act. If the property is leased
550	550	15 in a manner that does not qualify for this exemption or used in
551	551	16 any other nonexempt manner, the lessor shall be liable for the
552	552	17 tax imposed under this Act or the Service Use Tax Act, as the
553	553	18 case may be, based on the fair market value of the property at
554	554	19 the time the nonqualifying use occurs. No lessor shall collect
555	555	20 or attempt to collect an amount (however designated) that
556	556	21 purports to reimburse that lessor for the tax imposed by this
557	557	22 Act or the Service Use Tax Act, as the case may be, if the tax
558	558	23 has not been paid by the lessor. If a lessor improperly
559	559	24 collects any such amount from the lessee, the lessee shall
560	560	25 have a legal right to claim a refund of that amount from the
561	561	26 lessor. If, however, that amount is not refunded to the lessee
562	562
563	563
564	564
565	565
566	566
567	567	SB2857 - 15 - LRB103 36897 HLH 67010 b
568	568
569	569
570	570	SB2857- 16 -LRB103 36897 HLH 67010 b SB2857 - 16 - LRB103 36897 HLH 67010 b
571	571	SB2857 - 16 - LRB103 36897 HLH 67010 b
572	572	1 for any reason, the lessor is liable to pay that amount to the
573	573	2 Department. This paragraph is exempt from the provisions of
574	574	3 Section 3-90.
575	575	4 (33) On and after July 1, 2003 and through June 30, 2004,
576	576	5 the use in this State of motor vehicles of the second division
577	577	6 with a gross vehicle weight in excess of 8,000 pounds and that
578	578	7 are subject to the commercial distribution fee imposed under
579	579	8 Section 3-815.1 of the Illinois Vehicle Code. Beginning on
580	580	9 July 1, 2004 and through June 30, 2005, the use in this State
581	581	10 of motor vehicles of the second division: (i) with a gross
582	582	11 vehicle weight rating in excess of 8,000 pounds; (ii) that are
583	583	12 subject to the commercial distribution fee imposed under
584	584	13 Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
585	585	14 are primarily used for commercial purposes. Through June 30,
586	586	15 2005, this exemption applies to repair and replacement parts
587	587	16 added after the initial purchase of such a motor vehicle if
588	588	17 that motor vehicle is used in a manner that would qualify for
589	589	18 the rolling stock exemption otherwise provided for in this
590	590	19 Act. For purposes of this paragraph, the term "used for
591	591	20 commercial purposes" means the transportation of persons or
592	592	21 property in furtherance of any commercial or industrial
593	593	22 enterprise, whether for-hire or not.
594	594	23 (34) Beginning January 1, 2008, tangible personal property
595	595	24 used in the construction or maintenance of a community water
596	596	25 supply, as defined under Section 3.145 of the Environmental
597	597	26 Protection Act, that is operated by a not-for-profit
598	598
599	599
600	600
601	601
602	602
603	603	SB2857 - 16 - LRB103 36897 HLH 67010 b
604	604
605	605
606	606	SB2857- 17 -LRB103 36897 HLH 67010 b SB2857 - 17 - LRB103 36897 HLH 67010 b
607	607	SB2857 - 17 - LRB103 36897 HLH 67010 b
608	608	1 corporation that holds a valid water supply permit issued
609	609	2 under Title IV of the Environmental Protection Act. This
610	610	3 paragraph is exempt from the provisions of Section 3-90.
611	611	4 (35) Beginning January 1, 2010 and continuing through
612	612	5 December 31, 2029, materials, parts, equipment, components,
613	613	6 and furnishings incorporated into or upon an aircraft as part
614	614	7 of the modification, refurbishment, completion, replacement,
615	615	8 repair, or maintenance of the aircraft. This exemption
616	616	9 includes consumable supplies used in the modification,
617	617	10 refurbishment, completion, replacement, repair, and
618	618	11 maintenance of aircraft. However, until January 1, 2024, this
619	619	12 exemption excludes any materials, parts, equipment,
620	620	13 components, and consumable supplies used in the modification,
621	621	14 replacement, repair, and maintenance of aircraft engines or
622	622	15 power plants, whether such engines or power plants are
623	623	16 installed or uninstalled upon any such aircraft. "Consumable
624	624	17 supplies" include, but are not limited to, adhesive, tape,
625	625	18 sandpaper, general purpose lubricants, cleaning solution,
626	626	19 latex gloves, and protective films.
627	627	20 Beginning January 1, 2010 and continuing through December
628	628	21 31, 2023, this exemption applies only to the use of qualifying
629	629	22 tangible personal property by persons who modify, refurbish,
630	630	23 complete, repair, replace, or maintain aircraft and who (i)
631	631	24 hold an Air Agency Certificate and are empowered to operate an
632	632	25 approved repair station by the Federal Aviation
633	633	26 Administration, (ii) have a Class IV Rating, and (iii) conduct
634	634
635	635
636	636
637	637
638	638
639	639	SB2857 - 17 - LRB103 36897 HLH 67010 b
640	640
641	641
642	642	SB2857- 18 -LRB103 36897 HLH 67010 b SB2857 - 18 - LRB103 36897 HLH 67010 b
643	643	SB2857 - 18 - LRB103 36897 HLH 67010 b
644	644	1 operations in accordance with Part 145 of the Federal Aviation
645	645	2 Regulations. From January 1, 2024 through December 31, 2029,
646	646	3 this exemption applies only to the use of qualifying tangible
647	647	4 personal property by: (A) persons who modify, refurbish,
648	648	5 complete, repair, replace, or maintain aircraft and who (i)
649	649	6 hold an Air Agency Certificate and are empowered to operate an
650	650	7 approved repair station by the Federal Aviation
651	651	8 Administration, (ii) have a Class IV Rating, and (iii) conduct
652	652	9 operations in accordance with Part 145 of the Federal Aviation
653	653	10 Regulations; and (B) persons who engage in the modification,
654	654	11 replacement, repair, and maintenance of aircraft engines or
655	655	12 power plants without regard to whether or not those persons
656	656	13 meet the qualifications of item (A).
657	657	14 The exemption does not include aircraft operated by a
658	658	15 commercial air carrier providing scheduled passenger air
659	659	16 service pursuant to authority issued under Part 121 or Part
660	660	17 129 of the Federal Aviation Regulations. The changes made to
661	661	18 this paragraph (35) by Public Act 98-534 are declarative of
662	662	19 existing law. It is the intent of the General Assembly that the
663	663	20 exemption under this paragraph (35) applies continuously from
664	664	21 January 1, 2010 through December 31, 2024; however, no claim
665	665	22 for credit or refund is allowed for taxes paid as a result of
666	666	23 the disallowance of this exemption on or after January 1, 2015
667	667	24 and prior to February 5, 2020 (the effective date of Public Act
668	668	25 101-629).
669	669	26 (36) Tangible personal property purchased by a
670	670
671	671
672	672
673	673
674	674
675	675	SB2857 - 18 - LRB103 36897 HLH 67010 b
676	676
677	677
678	678	SB2857- 19 -LRB103 36897 HLH 67010 b SB2857 - 19 - LRB103 36897 HLH 67010 b
679	679	SB2857 - 19 - LRB103 36897 HLH 67010 b
680	680	1 public-facilities corporation, as described in Section
681	681	2 11-65-10 of the Illinois Municipal Code, for purposes of
682	682	3 constructing or furnishing a municipal convention hall, but
683	683	4 only if the legal title to the municipal convention hall is
684	684	5 transferred to the municipality without any further
685	685	6 consideration by or on behalf of the municipality at the time
686	686	7 of the completion of the municipal convention hall or upon the
687	687	8 retirement or redemption of any bonds or other debt
688	688	9 instruments issued by the public-facilities corporation in
689	689	10 connection with the development of the municipal convention
690	690	11 hall. This exemption includes existing public-facilities
691	691	12 corporations as provided in Section 11-65-25 of the Illinois
692	692	13 Municipal Code. This paragraph is exempt from the provisions
693	693	14 of Section 3-90.
694	694	15 (37) Beginning January 1, 2017 and through December 31,
695	695	16 2026, menstrual pads, tampons, and menstrual cups.
696	696	17 (38) Merchandise that is subject to the Rental Purchase
697	697	18 Agreement Occupation and Use Tax. The purchaser must certify
698	698	19 that the item is purchased to be rented subject to a
699	699	20 rental-purchase rental purchase agreement, as defined in the
700	700	21 Rental-Purchase Rental Purchase Agreement Act, and provide
701	701	22 proof of registration under the Rental Purchase Agreement
702	702	23 Occupation and Use Tax Act. This paragraph is exempt from the
703	703	24 provisions of Section 3-90.
704	704	25 (39) Tangible personal property purchased by a purchaser
705	705	26 who is exempt from the tax imposed by this Act by operation of
706	706
707	707
708	708
709	709
710	710
711	711	SB2857 - 19 - LRB103 36897 HLH 67010 b
712	712
713	713
714	714	SB2857- 20 -LRB103 36897 HLH 67010 b SB2857 - 20 - LRB103 36897 HLH 67010 b
715	715	SB2857 - 20 - LRB103 36897 HLH 67010 b
716	716	1 federal law. This paragraph is exempt from the provisions of
717	717	2 Section 3-90.
718	718	3 (40) Qualified tangible personal property used in the
719	719	4 construction or operation of a data center that has been
720	720	5 granted a certificate of exemption by the Department of
721	721	6 Commerce and Economic Opportunity, whether that tangible
722	722	7 personal property is purchased by the owner, operator, or
723	723	8 tenant of the data center or by a contractor or subcontractor
724	724	9 of the owner, operator, or tenant. Data centers that would
725	725	10 have qualified for a certificate of exemption prior to January
726	726	11 1, 2020 had Public Act 101-31 been in effect may apply for and
727	727	12 obtain an exemption for subsequent purchases of computer
728	728	13 equipment or enabling software purchased or leased to upgrade,
729	729	14 supplement, or replace computer equipment or enabling software
730	730	15 purchased or leased in the original investment that would have
731	731	16 qualified.
732	732	17 The Department of Commerce and Economic Opportunity shall
733	733	18 grant a certificate of exemption under this item (40) to
734	734	19 qualified data centers as defined by Section 605-1025 of the
735	735	20 Department of Commerce and Economic Opportunity Law of the
736	736	21 Civil Administrative Code of Illinois.
737	737	22 For the purposes of this item (40):
738	738	23 "Data center" means a building or a series of
739	739	24 buildings rehabilitated or constructed to house working
740	740	25 servers in one physical location or multiple sites within
741	741	26 the State of Illinois.
742	742
743	743
744	744
745	745
746	746
747	747	SB2857 - 20 - LRB103 36897 HLH 67010 b
748	748
749	749
750	750	SB2857- 21 -LRB103 36897 HLH 67010 b SB2857 - 21 - LRB103 36897 HLH 67010 b
751	751	SB2857 - 21 - LRB103 36897 HLH 67010 b
752	752	1 "Qualified tangible personal property" means:
753	753	2 electrical systems and equipment; climate control and
754	754	3 chilling equipment and systems; mechanical systems and
755	755	4 equipment; monitoring and secure systems; emergency
756	756	5 generators; hardware; computers; servers; data storage
757	757	6 devices; network connectivity equipment; racks; cabinets;
758	758	7 telecommunications cabling infrastructure; raised floor
759	759	8 systems; peripheral components or systems; software;
760	760	9 mechanical, electrical, or plumbing systems; battery
761	761	10 systems; cooling systems and towers; temperature control
762	762	11 systems; other cabling; and other data center
763	763	12 infrastructure equipment and systems necessary to operate
764	764	13 qualified tangible personal property, including fixtures;
765	765	14 and component parts of any of the foregoing, including
766	766	15 installation, maintenance, repair, refurbishment, and
767	767	16 replacement of qualified tangible personal property to
768	768	17 generate, transform, transmit, distribute, or manage
769	769	18 electricity necessary to operate qualified tangible
770	770	19 personal property; and all other tangible personal
771	771	20 property that is essential to the operations of a computer
772	772	21 data center. The term "qualified tangible personal
773	773	22 property" also includes building materials physically
774	774	23 incorporated into in to the qualifying data center. To
775	775	24 document the exemption allowed under this Section, the
776	776	25 retailer must obtain from the purchaser a copy of the
777	777	26 certificate of eligibility issued by the Department of
778	778
779	779
780	780
781	781
782	782
783	783	SB2857 - 21 - LRB103 36897 HLH 67010 b
784	784
785	785
786	786	SB2857- 22 -LRB103 36897 HLH 67010 b SB2857 - 22 - LRB103 36897 HLH 67010 b
787	787	SB2857 - 22 - LRB103 36897 HLH 67010 b
788	788	1 Commerce and Economic Opportunity.
789	789	2 This item (40) is exempt from the provisions of Section
790	790	3 3-90.
791	791	4 (41) Beginning July 1, 2022, breast pumps, breast pump
792	792	5 collection and storage supplies, and breast pump kits. This
793	793	6 item (41) is exempt from the provisions of Section 3-90. As
794	794	7 used in this item (41):
795	795	8 "Breast pump" means an electrically controlled or
796	796	9 manually controlled pump device designed or marketed to be
797	797	10 used to express milk from a human breast during lactation,
798	798	11 including the pump device and any battery, AC adapter, or
799	799	12 other power supply unit that is used to power the pump
800	800	13 device and is packaged and sold with the pump device at the
801	801	14 time of sale.
802	802	15 "Breast pump collection and storage supplies" means
803	803	16 items of tangible personal property designed or marketed
804	804	17 to be used in conjunction with a breast pump to collect
805	805	18 milk expressed from a human breast and to store collected
806	806	19 milk until it is ready for consumption.
807	807	20 "Breast pump collection and storage supplies"
808	808	21 includes, but is not limited to: breast shields and breast
809	809	22 shield connectors; breast pump tubes and tubing adapters;
810	810	23 breast pump valves and membranes; backflow protectors and
811	811	24 backflow protector adaptors; bottles and bottle caps
812	812	25 specific to the operation of the breast pump; and breast
813	813	26 milk storage bags.
814	814
815	815
816	816
817	817
818	818
819	819	SB2857 - 22 - LRB103 36897 HLH 67010 b
820	820
821	821
822	822	SB2857- 23 -LRB103 36897 HLH 67010 b SB2857 - 23 - LRB103 36897 HLH 67010 b
823	823	SB2857 - 23 - LRB103 36897 HLH 67010 b
824	824	1 "Breast pump collection and storage supplies" does not
825	825	2 include: (1) bottles and bottle caps not specific to the
826	826	3 operation of the breast pump; (2) breast pump travel bags
827	827	4 and other similar carrying accessories, including ice
828	828	5 packs, labels, and other similar products; (3) breast pump
829	829	6 cleaning supplies; (4) nursing bras, bra pads, breast
830	830	7 shells, and other similar products; and (5) creams,
831	831	8 ointments, and other similar products that relieve
832	832	9 breastfeeding-related symptoms or conditions of the
833	833	10 breasts or nipples, unless sold as part of a breast pump
834	834	11 kit that is pre-packaged by the breast pump manufacturer
835	835	12 or distributor.
836	836	13 "Breast pump kit" means a kit that: (1) contains no
837	837	14 more than a breast pump, breast pump collection and
838	838	15 storage supplies, a rechargeable battery for operating the
839	839	16 breast pump, a breastmilk cooler, bottle stands, ice
840	840	17 packs, and a breast pump carrying case; and (2) is
841	841	18 pre-packaged as a breast pump kit by the breast pump
842	842	19 manufacturer or distributor.
843	843	20 (42) Tangible personal property sold by or on behalf of
844	844	21 the State Treasurer pursuant to the Revised Uniform Unclaimed
845	845	22 Property Act. This item (42) is exempt from the provisions of
846	846	23 Section 3-90.
847	847	24 (43) Beginning on January 1, 2024, tangible personal
848	848	25 property purchased by an active duty member of the armed
849	849	26 forces of the United States who presents valid military
850	850
851	851
852	852
853	853
854	854
855	855	SB2857 - 23 - LRB103 36897 HLH 67010 b
856	856
857	857
858	858	SB2857- 24 -LRB103 36897 HLH 67010 b SB2857 - 24 - LRB103 36897 HLH 67010 b
859	859	SB2857 - 24 - LRB103 36897 HLH 67010 b
860	860	1 identification and purchases the property using a form of
861	861	2 payment where the federal government is the payor. The member
862	862	3 of the armed forces must complete, at the point of sale, a form
863	863	4 prescribed by the Department of Revenue documenting that the
864	864	5 transaction is eligible for the exemption under this
865	865	6 paragraph. Retailers must keep the form as documentation of
866	866	7 the exemption in their records for a period of not less than 6
867	867	8 years. "Armed forces of the United States" means the United
868	868	9 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
869	869	10 This paragraph is exempt from the provisions of Section 3-90.
870	870	11 (44) Qualified tangible personal property that is (i) used
871	871	12 in the construction or development of a megaproject for which
872	872	13 a certificate has been issued prior to December 31, 2030 by the
873	873	14 Department of Commerce and Economic Opportunity under Division
874	874	15 22 of Article 10 of the Property Tax Code and (ii) purchased
875	875	16 prior to the Department's issuance of the megaproject
876	876	17 certificate or during the investment period, whether that
877	877	18 tangible personal property is purchased by the owner,
878	878	19 operator, or tenant of the megaproject or by a contractor or
879	879	20 subcontractor of the owner, operator, or tenant.
880	880	21 As used in this item (44):
881	881	22 "Facility" means a building or series of buildings.
882	882	23 "Investment period" means the period ending 7 years after
883	883	24 the date on which the Department of Commerce and Economic
884	884	25 Opportunity issues the megaproject certificate, or such other
885	885	26 longer period of time as the local municipality, local taxing
886	886
887	887
888	888
889	889
890	890
891	891	SB2857 - 24 - LRB103 36897 HLH 67010 b
892	892
893	893
894	894	SB2857- 25 -LRB103 36897 HLH 67010 b SB2857 - 25 - LRB103 36897 HLH 67010 b
895	895	SB2857 - 25 - LRB103 36897 HLH 67010 b
896	896	1 districts, and the company may agree to, not to exceed an
897	897	2 initial period of 10 years.
898	898	3 "Megaproject" means a facility that is rehabilitated or
899	899	4 constructed as described in Division 22 of Article 10 of the
900	900	5 Property Tax Code.
901	901	6 "Qualified tangible personal property" means all tangible
902	902	7 personal property that is essential to the construction or
903	903	8 development of a megaproject, including, but not limited to:
904	904	9 electrical systems and equipment; climate control and chilling
905	905	10 equipment and systems; mechanical systems and equipment;
906	906	11 monitoring and secure systems; emergency generators; hardware;
907	907	12 computers; servers; data storage devices; network connectivity
908	908	13 equipment; racks; cabinets; telecommunications cabling
909	909	14 infrastructure; raised floor systems; peripheral components or
910	910	15 systems; software; mechanical, electrical, or plumbing
911	911	16 systems; battery systems; cooling systems and towers;
912	912	17 temperature control systems; other cabling; and other
913	913	18 infrastructure, equipment, and systems necessary to operate
914	914	19 qualified tangible personal property, including fixtures; and
915	915	20 component parts of those items, including installation,
916	916	21 maintenance, repair, refurbishment, and replacement of
917	917	22 qualified tangible personal property to generate, transform,
918	918	23 transmit, distribute, or manage electricity necessary to
919	919	24 operate qualified tangible personal property. The term
920	920	25 "qualified tangible personal property" also includes building
921	921	26 materials to be incorporated into the megaproject. To document
922	922
923	923
924	924
925	925
926	926
927	927	SB2857 - 25 - LRB103 36897 HLH 67010 b
928	928
929	929
930	930	SB2857- 26 -LRB103 36897 HLH 67010 b SB2857 - 26 - LRB103 36897 HLH 67010 b
931	931	SB2857 - 26 - LRB103 36897 HLH 67010 b
932	932	1 the exemption allowed under this Section, the retailer,
933	933	2 contractor, subcontractor, or supplier must obtain from the
934	934	3 purchaser a copy of the certificate issued by the Department
935	935	4 of Commerce and Economic Opportunity for the megaproject as
936	936	5 described and defined in Division 22 of Article 10 of the
937	937	6 Property Tax Code.
938	938	7 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
939	939	8 Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
940	940	9 eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
941	941	10 Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
942	942	11 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
943	943	12 revised 12-12-23.)
944	944	13 Section 10. The Service Use Tax Act is amended by changing
945	945	14 Section 3-5 as follows:
946	946	15 (35 ILCS 110/3-5)
947	947	16 Sec. 3-5. Exemptions. Use of the following tangible
948	948	17 personal property is exempt from the tax imposed by this Act:
949	949	18 (1) Personal property purchased from a corporation,
950	950	19 society, association, foundation, institution, or
951	951	20 organization, other than a limited liability company, that is
952	952	21 organized and operated as a not-for-profit service enterprise
953	953	22 for the benefit of persons 65 years of age or older if the
954	954	23 personal property was not purchased by the enterprise for the
955	955	24 purpose of resale by the enterprise.
956	956
957	957
958	958
959	959
960	960
961	961	SB2857 - 26 - LRB103 36897 HLH 67010 b
962	962
963	963
964	964	SB2857- 27 -LRB103 36897 HLH 67010 b SB2857 - 27 - LRB103 36897 HLH 67010 b
965	965	SB2857 - 27 - LRB103 36897 HLH 67010 b
966	966	1 (2) Personal property purchased by a non-profit Illinois
967	967	2 county fair association for use in conducting, operating, or
968	968	3 promoting the county fair.
969	969	4 (3) Personal property purchased by a not-for-profit arts
970	970	5 or cultural organization that establishes, by proof required
971	971	6 by the Department by rule, that it has received an exemption
972	972	7 under Section 501(c)(3) of the Internal Revenue Code and that
973	973	8 is organized and operated primarily for the presentation or
974	974	9 support of arts or cultural programming, activities, or
975	975	10 services. These organizations include, but are not limited to,
976	976	11 music and dramatic arts organizations such as symphony
977	977	12 orchestras and theatrical groups, arts and cultural service
978	978	13 organizations, local arts councils, visual arts organizations,
979	979	14 and media arts organizations. On and after July 1, 2001 (the
980	980	15 effective date of Public Act 92-35), however, an entity
981	981	16 otherwise eligible for this exemption shall not make tax-free
982	982	17 purchases unless it has an active identification number issued
983	983	18 by the Department.
984	984	19 (4) Legal tender, currency, medallions, or gold or silver
985	985	20 coinage issued by the State of Illinois, the government of the
986	986	21 United States of America, or the government of any foreign
987	987	22 country, and bullion.
988	988	23 (5) Until July 1, 2003 and beginning again on September 1,
989	989	24 2004 through August 30, 2014, graphic arts machinery and
990	990	25 equipment, including repair and replacement parts, both new
991	991	26 and used, and including that manufactured on special order or
992	992
993	993
994	994
995	995
996	996
997	997	SB2857 - 27 - LRB103 36897 HLH 67010 b
998	998
999	999
1000	1000	SB2857- 28 -LRB103 36897 HLH 67010 b SB2857 - 28 - LRB103 36897 HLH 67010 b
1001	1001	SB2857 - 28 - LRB103 36897 HLH 67010 b
1002	1002	1 purchased for lease, certified by the purchaser to be used
1003	1003	2 primarily for graphic arts production. Equipment includes
1004	1004	3 chemicals or chemicals acting as catalysts but only if the
1005	1005	4 chemicals or chemicals acting as catalysts effect a direct and
1006	1006	5 immediate change upon a graphic arts product. Beginning on
1007	1007	6 July 1, 2017, graphic arts machinery and equipment is included
1008	1008	7 in the manufacturing and assembling machinery and equipment
1009	1009	8 exemption under Section 2 of this Act.
1010	1010	9 (6) Personal property purchased from a teacher-sponsored
1011	1011	10 student organization affiliated with an elementary or
1012	1012	11 secondary school located in Illinois.
1013	1013	12 (7) Farm machinery and equipment, both new and used,
1014	1014	13 including that manufactured on special order, certified by the
1015	1015	14 purchaser to be used primarily for production agriculture or
1016	1016	15 State or federal agricultural programs, including individual
1017	1017	16 replacement parts for the machinery and equipment, including
1018	1018	17 machinery and equipment purchased for lease, and including
1019	1019	18 implements of husbandry defined in Section 1-130 of the
1020	1020	19 Illinois Vehicle Code, farm machinery and agricultural
1021	1021	20 chemical and fertilizer spreaders, and nurse wagons required
1022	1022	21 to be registered under Section 3-809 of the Illinois Vehicle
1023	1023	22 Code, but excluding other motor vehicles required to be
1024	1024	23 registered under the Illinois Vehicle Code. Horticultural
1025	1025	24 polyhouses or hoop houses used for propagating, growing, or
1026	1026	25 overwintering plants shall be considered farm machinery and
1027	1027	26 equipment under this item (7). Agricultural chemical tender
1028	1028
1029	1029
1030	1030
1031	1031
1032	1032
1033	1033	SB2857 - 28 - LRB103 36897 HLH 67010 b
1034	1034
1035	1035
1036	1036	SB2857- 29 -LRB103 36897 HLH 67010 b SB2857 - 29 - LRB103 36897 HLH 67010 b
1037	1037	SB2857 - 29 - LRB103 36897 HLH 67010 b
1038	1038	1 tanks and dry boxes shall include units sold separately from a
1039	1039	2 motor vehicle required to be licensed and units sold mounted
1040	1040	3 on a motor vehicle required to be licensed if the selling price
1041	1041	4 of the tender is separately stated.
1042	1042	5 Farm machinery and equipment shall include precision
1043	1043	6 farming equipment that is installed or purchased to be
1044	1044	7 installed on farm machinery and equipment, including, but not
1045	1045	8 limited to, tractors, harvesters, sprayers, planters, seeders,
1046	1046	9 or spreaders. Precision farming equipment includes, but is not
1047	1047	10 limited to, soil testing sensors, computers, monitors,
1048	1048	11 software, global positioning and mapping systems, and other
1049	1049	12 such equipment.
1050	1050	13 Farm machinery and equipment also includes computers,
1051	1051	14 sensors, software, and related equipment used primarily in the
1052	1052	15 computer-assisted operation of production agriculture
1053	1053	16 facilities, equipment, and activities such as, but not limited
1054	1054	17 to, the collection, monitoring, and correlation of animal and
1055	1055	18 crop data for the purpose of formulating animal diets and
1056	1056	19 agricultural chemicals.
1057	1057	20 Beginning on January 1, 2024, farm machinery and equipment
1058	1058	21 also includes electrical power generation equipment used
1059	1059	22 primarily for production agriculture.
1060	1060	23 This item (7) is exempt from the provisions of Section
1061	1061	24 3-75.
1062	1062	25 (8) Until June 30, 2013, fuel and petroleum products sold
1063	1063	26 to or used by an air common carrier, certified by the carrier
1064	1064
1065	1065
1066	1066
1067	1067
1068	1068
1069	1069	SB2857 - 29 - LRB103 36897 HLH 67010 b
1070	1070
1071	1071
1072	1072	SB2857- 30 -LRB103 36897 HLH 67010 b SB2857 - 30 - LRB103 36897 HLH 67010 b
1073	1073	SB2857 - 30 - LRB103 36897 HLH 67010 b
1074	1074	1 to be used for consumption, shipment, or storage in the
1075	1075	2 conduct of its business as an air common carrier, for a flight
1076	1076	3 destined for or returning from a location or locations outside
1077	1077	4 the United States without regard to previous or subsequent
1078	1078	5 domestic stopovers.
1079	1079	6 Beginning July 1, 2013, fuel and petroleum products sold
1080	1080	7 to or used by an air carrier, certified by the carrier to be
1081	1081	8 used for consumption, shipment, or storage in the conduct of
1082	1082	9 its business as an air common carrier, for a flight that (i) is
1083	1083	10 engaged in foreign trade or is engaged in trade between the
1084	1084	11 United States and any of its possessions and (ii) transports
1085	1085	12 at least one individual or package for hire from the city of
1086	1086	13 origination to the city of final destination on the same
1087	1087	14 aircraft, without regard to a change in the flight number of
1088	1088	15 that aircraft.
1089	1089	16 (9) Proceeds of mandatory service charges separately
1090	1090	17 stated on customers' bills for the purchase and consumption of
1091	1091	18 food and beverages acquired as an incident to the purchase of a
1092	1092	19 service from a serviceman, to the extent that the proceeds of
1093	1093	20 the service charge are in fact turned over as tips or as a
1094	1094	21 substitute for tips to the employees who participate directly
1095	1095	22 in preparing, serving, hosting or cleaning up the food or
1096	1096	23 beverage function with respect to which the service charge is
1097	1097	24 imposed.
1098	1098	25 (10) Until July 1, 2003, oil field exploration, drilling,
1099	1099	26 and production equipment, including (i) rigs and parts of
1100	1100
1101	1101
1102	1102
1103	1103
1104	1104
1105	1105	SB2857 - 30 - LRB103 36897 HLH 67010 b
1106	1106
1107	1107
1108	1108	SB2857- 31 -LRB103 36897 HLH 67010 b SB2857 - 31 - LRB103 36897 HLH 67010 b
1109	1109	SB2857 - 31 - LRB103 36897 HLH 67010 b
1110	1110	1 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1111	1111	2 pipe and tubular goods, including casing and drill strings,
1112	1112	3 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1113	1113	4 lines, (v) any individual replacement part for oil field
1114	1114	5 exploration, drilling, and production equipment, and (vi)
1115	1115	6 machinery and equipment purchased for lease; but excluding
1116	1116	7 motor vehicles required to be registered under the Illinois
1117	1117	8 Vehicle Code.
1118	1118	9 (11) Proceeds from the sale of photoprocessing machinery
1119	1119	10 and equipment, including repair and replacement parts, both
1120	1120	11 new and used, including that manufactured on special order,
1121	1121	12 certified by the purchaser to be used primarily for
1122	1122	13 photoprocessing, and including photoprocessing machinery and
1123	1123	14 equipment purchased for lease.
1124	1124	15 (12) Until July 1, 2028, coal and aggregate exploration,
1125	1125	16 mining, off-highway hauling, processing, maintenance, and
1126	1126	17 reclamation equipment, including replacement parts and
1127	1127	18 equipment, and including equipment purchased for lease, but
1128	1128	19 excluding motor vehicles required to be registered under the
1129	1129	20 Illinois Vehicle Code. The changes made to this Section by
1130	1130	21 Public Act 97-767 apply on and after July 1, 2003, but no claim
1131	1131	22 for credit or refund is allowed on or after August 16, 2013
1132	1132	23 (the effective date of Public Act 98-456) for such taxes paid
1133	1133	24 during the period beginning July 1, 2003 and ending on August
1134	1134	25 16, 2013 (the effective date of Public Act 98-456).
1135	1135	26 (13) Semen used for artificial insemination of livestock
1136	1136
1137	1137
1138	1138
1139	1139
1140	1140
1141	1141	SB2857 - 31 - LRB103 36897 HLH 67010 b
1142	1142
1143	1143
1144	1144	SB2857- 32 -LRB103 36897 HLH 67010 b SB2857 - 32 - LRB103 36897 HLH 67010 b
1145	1145	SB2857 - 32 - LRB103 36897 HLH 67010 b
1146	1146	1 for direct agricultural production.
1147	1147	2 (14) Horses, or interests in horses, registered with and
1148	1148	3 meeting the requirements of any of the Arabian Horse Club
1149	1149	4 Registry of America, Appaloosa Horse Club, American Quarter
1150	1150	5 Horse Association, United States Trotting Association, or
1151	1151	6 Jockey Club, as appropriate, used for purposes of breeding or
1152	1152	7 racing for prizes. This item (14) is exempt from the
1153	1153	8 provisions of Section 3-75, and the exemption provided for
1154	1154	9 under this item (14) applies for all periods beginning May 30,
1155	1155	10 1995, but no claim for credit or refund is allowed on or after
1156	1156	11 January 1, 2008 (the effective date of Public Act 95-88) for
1157	1157	12 such taxes paid during the period beginning May 30, 2000 and
1158	1158	13 ending on January 1, 2008 (the effective date of Public Act
1159	1159	14 95-88).
1160	1160	15 (15) Computers and communications equipment utilized for
1161	1161	16 any hospital purpose and equipment used in the diagnosis,
1162	1162	17 analysis, or treatment of hospital patients purchased by a
1163	1163	18 lessor who leases the equipment, under a lease of one year or
1164	1164	19 longer executed or in effect at the time the lessor would
1165	1165	20 otherwise be subject to the tax imposed by this Act, to a
1166	1166	21 hospital that has been issued an active tax exemption
1167	1167	22 identification number by the Department under Section 1g of
1168	1168	23 the Retailers' Occupation Tax Act. If the equipment is leased
1169	1169	24 in a manner that does not qualify for this exemption or is used
1170	1170	25 in any other non-exempt manner, the lessor shall be liable for
1171	1171	26 the tax imposed under this Act or the Use Tax Act, as the case
1172	1172
1173	1173
1174	1174
1175	1175
1176	1176
1177	1177	SB2857 - 32 - LRB103 36897 HLH 67010 b
1178	1178
1179	1179
1180	1180	SB2857- 33 -LRB103 36897 HLH 67010 b SB2857 - 33 - LRB103 36897 HLH 67010 b
1181	1181	SB2857 - 33 - LRB103 36897 HLH 67010 b
1182	1182	1 may be, based on the fair market value of the property at the
1183	1183	2 time the non-qualifying use occurs. No lessor shall collect or
1184	1184	3 attempt to collect an amount (however designated) that
1185	1185	4 purports to reimburse that lessor for the tax imposed by this
1186	1186	5 Act or the Use Tax Act, as the case may be, if the tax has not
1187	1187	6 been paid by the lessor. If a lessor improperly collects any
1188	1188	7 such amount from the lessee, the lessee shall have a legal
1189	1189	8 right to claim a refund of that amount from the lessor. If,
1190	1190	9 however, that amount is not refunded to the lessee for any
1191	1191	10 reason, the lessor is liable to pay that amount to the
1192	1192	11 Department.
1193	1193	12 (16) Personal property purchased by a lessor who leases
1194	1194	13 the property, under a lease of one year or longer executed or
1195	1195	14 in effect at the time the lessor would otherwise be subject to
1196	1196	15 the tax imposed by this Act, to a governmental body that has
1197	1197	16 been issued an active tax exemption identification number by
1198	1198	17 the Department under Section 1g of the Retailers' Occupation
1199	1199	18 Tax Act. If the property is leased in a manner that does not
1200	1200	19 qualify for this exemption or is used in any other non-exempt
1201	1201	20 manner, the lessor shall be liable for the tax imposed under
1202	1202	21 this Act or the Use Tax Act, as the case may be, based on the
1203	1203	22 fair market value of the property at the time the
1204	1204	23 non-qualifying use occurs. No lessor shall collect or attempt
1205	1205	24 to collect an amount (however designated) that purports to
1206	1206	25 reimburse that lessor for the tax imposed by this Act or the
1207	1207	26 Use Tax Act, as the case may be, if the tax has not been paid
1208	1208
1209	1209
1210	1210
1211	1211
1212	1212
1213	1213	SB2857 - 33 - LRB103 36897 HLH 67010 b
1214	1214
1215	1215
1216	1216	SB2857- 34 -LRB103 36897 HLH 67010 b SB2857 - 34 - LRB103 36897 HLH 67010 b
1217	1217	SB2857 - 34 - LRB103 36897 HLH 67010 b
1218	1218	1 by the lessor. If a lessor improperly collects any such amount
1219	1219	2 from the lessee, the lessee shall have a legal right to claim a
1220	1220	3 refund of that amount from the lessor. If, however, that
1221	1221	4 amount is not refunded to the lessee for any reason, the lessor
1222	1222	5 is liable to pay that amount to the Department.
1223	1223	6 (17) Beginning with taxable years ending on or after
1224	1224	7 December 31, 1995 and ending with taxable years ending on or
1225	1225	8 before December 31, 2004, personal property that is donated
1226	1226	9 for disaster relief to be used in a State or federally declared
1227	1227	10 disaster area in Illinois or bordering Illinois by a
1228	1228	11 manufacturer or retailer that is registered in this State to a
1229	1229	12 corporation, society, association, foundation, or institution
1230	1230	13 that has been issued a sales tax exemption identification
1231	1231	14 number by the Department that assists victims of the disaster
1232	1232	15 who reside within the declared disaster area.
1233	1233	16 (18) Beginning with taxable years ending on or after
1234	1234	17 December 31, 1995 and ending with taxable years ending on or
1235	1235	18 before December 31, 2004, personal property that is used in
1236	1236	19 the performance of infrastructure repairs in this State,
1237	1237	20 including, but not limited to, municipal roads and streets,
1238	1238	21 access roads, bridges, sidewalks, waste disposal systems,
1239	1239	22 water and sewer line extensions, water distribution and
1240	1240	23 purification facilities, storm water drainage and retention
1241	1241	24 facilities, and sewage treatment facilities, resulting from a
1242	1242	25 State or federally declared disaster in Illinois or bordering
1243	1243	26 Illinois when such repairs are initiated on facilities located
1244	1244
1245	1245
1246	1246
1247	1247
1248	1248
1249	1249	SB2857 - 34 - LRB103 36897 HLH 67010 b
1250	1250
1251	1251
1252	1252	SB2857- 35 -LRB103 36897 HLH 67010 b SB2857 - 35 - LRB103 36897 HLH 67010 b
1253	1253	SB2857 - 35 - LRB103 36897 HLH 67010 b
1254	1254	1 in the declared disaster area within 6 months after the
1255	1255	2 disaster.
1256	1256	3 (19) Beginning July 1, 1999, game or game birds purchased
1257	1257	4 at a "game breeding and hunting preserve area" as that term is
1258	1258	5 used in the Wildlife Code. This paragraph is exempt from the
1259	1259	6 provisions of Section 3-75.
1260	1260	7 (20) A motor vehicle, as that term is defined in Section
1261	1261	8 1-146 of the Illinois Vehicle Code, that is donated to a
1262	1262	9 corporation, limited liability company, society, association,
1263	1263	10 foundation, or institution that is determined by the
1264	1264	11 Department to be organized and operated exclusively for
1265	1265	12 educational purposes. For purposes of this exemption, "a
1266	1266	13 corporation, limited liability company, society, association,
1267	1267	14 foundation, or institution organized and operated exclusively
1268	1268	15 for educational purposes" means all tax-supported public
1269	1269	16 schools, private schools that offer systematic instruction in
1270	1270	17 useful branches of learning by methods common to public
1271	1271	18 schools and that compare favorably in their scope and
1272	1272	19 intensity with the course of study presented in tax-supported
1273	1273	20 schools, and vocational or technical schools or institutes
1274	1274	21 organized and operated exclusively to provide a course of
1275	1275	22 study of not less than 6 weeks duration and designed to prepare
1276	1276	23 individuals to follow a trade or to pursue a manual,
1277	1277	24 technical, mechanical, industrial, business, or commercial
1278	1278	25 occupation.
1279	1279	26 (21) Beginning January 1, 2000, personal property,
1280	1280
1281	1281
1282	1282
1283	1283
1284	1284
1285	1285	SB2857 - 35 - LRB103 36897 HLH 67010 b
1286	1286
1287	1287
1288	1288	SB2857- 36 -LRB103 36897 HLH 67010 b SB2857 - 36 - LRB103 36897 HLH 67010 b
1289	1289	SB2857 - 36 - LRB103 36897 HLH 67010 b
1290	1290	1 including food, purchased through fundraising events for the
1291	1291	2 benefit of a public or private elementary or secondary school,
1292	1292	3 a group of those schools, or one or more school districts if
1293	1293	4 the events are sponsored by an entity recognized by the school
1294	1294	5 district that consists primarily of volunteers and includes
1295	1295	6 parents and teachers of the school children. This paragraph
1296	1296	7 does not apply to fundraising events (i) for the benefit of
1297	1297	8 private home instruction or (ii) for which the fundraising
1298	1298	9 entity purchases the personal property sold at the events from
1299	1299	10 another individual or entity that sold the property for the
1300	1300	11 purpose of resale by the fundraising entity and that profits
1301	1301	12 from the sale to the fundraising entity. This paragraph is
1302	1302	13 exempt from the provisions of Section 3-75.
1303	1303	14 (22) Beginning January 1, 2000 and through December 31,
1304	1304	15 2001, new or used automatic vending machines that prepare and
1305	1305	16 serve hot food and beverages, including coffee, soup, and
1306	1306	17 other items, and replacement parts for these machines.
1307	1307	18 Beginning January 1, 2002 and through June 30, 2003, machines
1308	1308	19 and parts for machines used in commercial, coin-operated
1309	1309	20 amusement and vending business if a use or occupation tax is
1310	1310	21 paid on the gross receipts derived from the use of the
1311	1311	22 commercial, coin-operated amusement and vending machines. This
1312	1312	23 paragraph is exempt from the provisions of Section 3-75.
1313	1313	24 (23) Beginning August 23, 2001 and through June 30, 2016,
1314	1314	25 food for human consumption that is to be consumed off the
1315	1315	26 premises where it is sold (other than alcoholic beverages,
1316	1316
1317	1317
1318	1318
1319	1319
1320	1320
1321	1321	SB2857 - 36 - LRB103 36897 HLH 67010 b
1322	1322
1323	1323
1324	1324	SB2857- 37 -LRB103 36897 HLH 67010 b SB2857 - 37 - LRB103 36897 HLH 67010 b
1325	1325	SB2857 - 37 - LRB103 36897 HLH 67010 b
1326	1326	1 soft drinks, and food that has been prepared for immediate
1327	1327	2 consumption) and prescription and nonprescription medicines,
1328	1328	3 drugs, medical appliances, and insulin, urine testing
1329	1329	4 materials, syringes, and needles used by diabetics, for human
1330	1330	5 use, when purchased for use by a person receiving medical
1331	1331	6 assistance under Article V of the Illinois Public Aid Code who
1332	1332	7 resides in a licensed long-term care facility, as defined in
1333	1333	8 the Nursing Home Care Act, or in a licensed facility as defined
1334	1334	9 in the ID/DD Community Care Act, the MC/DD Act, or the
1335	1335	10 Specialized Mental Health Rehabilitation Act of 2013.
1336	1336	11 (24) Beginning on August 2, 2001 (the effective date of
1337	1337	12 Public Act 92-227), computers and communications equipment
1338	1338	13 utilized for any hospital purpose and equipment used in the
1339	1339	14 diagnosis, analysis, or treatment of hospital patients
1340	1340	15 purchased by a lessor who leases the equipment, under a lease
1341	1341	16 of one year or longer executed or in effect at the time the
1342	1342	17 lessor would otherwise be subject to the tax imposed by this
1343	1343	18 Act, to a hospital that has been issued an active tax exemption
1344	1344	19 identification number by the Department under Section 1g of
1345	1345	20 the Retailers' Occupation Tax Act. If the equipment is leased
1346	1346	21 in a manner that does not qualify for this exemption or is used
1347	1347	22 in any other nonexempt manner, the lessor shall be liable for
1348	1348	23 the tax imposed under this Act or the Use Tax Act, as the case
1349	1349	24 may be, based on the fair market value of the property at the
1350	1350	25 time the nonqualifying use occurs. No lessor shall collect or
1351	1351	26 attempt to collect an amount (however designated) that
1352	1352
1353	1353
1354	1354
1355	1355
1356	1356
1357	1357	SB2857 - 37 - LRB103 36897 HLH 67010 b
1358	1358
1359	1359
1360	1360	SB2857- 38 -LRB103 36897 HLH 67010 b SB2857 - 38 - LRB103 36897 HLH 67010 b
1361	1361	SB2857 - 38 - LRB103 36897 HLH 67010 b
1362	1362	1 purports to reimburse that lessor for the tax imposed by this
1363	1363	2 Act or the Use Tax Act, as the case may be, if the tax has not
1364	1364	3 been paid by the lessor. If a lessor improperly collects any
1365	1365	4 such amount from the lessee, the lessee shall have a legal
1366	1366	5 right to claim a refund of that amount from the lessor. If,
1367	1367	6 however, that amount is not refunded to the lessee for any
1368	1368	7 reason, the lessor is liable to pay that amount to the
1369	1369	8 Department. This paragraph is exempt from the provisions of
1370	1370	9 Section 3-75.
1371	1371	10 (25) Beginning on August 2, 2001 (the effective date of
1372	1372	11 Public Act 92-227), personal property purchased by a lessor
1373	1373	12 who leases the property, under a lease of one year or longer
1374	1374	13 executed or in effect at the time the lessor would otherwise be
1375	1375	14 subject to the tax imposed by this Act, to a governmental body
1376	1376	15 that has been issued an active tax exemption identification
1377	1377	16 number by the Department under Section 1g of the Retailers'
1378	1378	17 Occupation Tax Act. If the property is leased in a manner that
1379	1379	18 does not qualify for this exemption or is used in any other
1380	1380	19 nonexempt manner, the lessor shall be liable for the tax
1381	1381	20 imposed under this Act or the Use Tax Act, as the case may be,
1382	1382	21 based on the fair market value of the property at the time the
1383	1383	22 nonqualifying use occurs. No lessor shall collect or attempt
1384	1384	23 to collect an amount (however designated) that purports to
1385	1385	24 reimburse that lessor for the tax imposed by this Act or the
1386	1386	25 Use Tax Act, as the case may be, if the tax has not been paid
1387	1387	26 by the lessor. If a lessor improperly collects any such amount
1388	1388
1389	1389
1390	1390
1391	1391
1392	1392
1393	1393	SB2857 - 38 - LRB103 36897 HLH 67010 b
1394	1394
1395	1395
1396	1396	SB2857- 39 -LRB103 36897 HLH 67010 b SB2857 - 39 - LRB103 36897 HLH 67010 b
1397	1397	SB2857 - 39 - LRB103 36897 HLH 67010 b
1398	1398	1 from the lessee, the lessee shall have a legal right to claim a
1399	1399	2 refund of that amount from the lessor. If, however, that
1400	1400	3 amount is not refunded to the lessee for any reason, the lessor
1401	1401	4 is liable to pay that amount to the Department. This paragraph
1402	1402	5 is exempt from the provisions of Section 3-75.
1403	1403	6 (26) Beginning January 1, 2008, tangible personal property
1404	1404	7 used in the construction or maintenance of a community water
1405	1405	8 supply, as defined under Section 3.145 of the Environmental
1406	1406	9 Protection Act, that is operated by a not-for-profit
1407	1407	10 corporation that holds a valid water supply permit issued
1408	1408	11 under Title IV of the Environmental Protection Act. This
1409	1409	12 paragraph is exempt from the provisions of Section 3-75.
1410	1410	13 (27) Beginning January 1, 2010 and continuing through
1411	1411	14 December 31, 2029, materials, parts, equipment, components,
1412	1412	15 and furnishings incorporated into or upon an aircraft as part
1413	1413	16 of the modification, refurbishment, completion, replacement,
1414	1414	17 repair, or maintenance of the aircraft. This exemption
1415	1415	18 includes consumable supplies used in the modification,
1416	1416	19 refurbishment, completion, replacement, repair, and
1417	1417	20 maintenance of aircraft. However, until January 1, 2024, this
1418	1418	21 exemption excludes any materials, parts, equipment,
1419	1419	22 components, and consumable supplies used in the modification,
1420	1420	23 replacement, repair, and maintenance of aircraft engines or
1421	1421	24 power plants, whether such engines or power plants are
1422	1422	25 installed or uninstalled upon any such aircraft. "Consumable
1423	1423	26 supplies" include, but are not limited to, adhesive, tape,
1424	1424
1425	1425
1426	1426
1427	1427
1428	1428
1429	1429	SB2857 - 39 - LRB103 36897 HLH 67010 b
1430	1430
1431	1431
1432	1432	SB2857- 40 -LRB103 36897 HLH 67010 b SB2857 - 40 - LRB103 36897 HLH 67010 b
1433	1433	SB2857 - 40 - LRB103 36897 HLH 67010 b
1434	1434	1 sandpaper, general purpose lubricants, cleaning solution,
1435	1435	2 latex gloves, and protective films.
1436	1436	3 Beginning January 1, 2010 and continuing through December
1437	1437	4 31, 2023, this exemption applies only to the use of qualifying
1438	1438	5 tangible personal property transferred incident to the
1439	1439	6 modification, refurbishment, completion, replacement, repair,
1440	1440	7 or maintenance of aircraft by persons who (i) hold an Air
1441	1441	8 Agency Certificate and are empowered to operate an approved
1442	1442	9 repair station by the Federal Aviation Administration, (ii)
1443	1443	10 have a Class IV Rating, and (iii) conduct operations in
1444	1444	11 accordance with Part 145 of the Federal Aviation Regulations.
1445	1445	12 From January 1, 2024 through December 31, 2029, this exemption
1446	1446	13 applies only to the use of qualifying tangible personal
1447	1447	14 property by: (A) persons who modify, refurbish, complete,
1448	1448	15 repair, replace, or maintain aircraft and who (i) hold an Air
1449	1449	16 Agency Certificate and are empowered to operate an approved
1450	1450	17 repair station by the Federal Aviation Administration, (ii)
1451	1451	18 have a Class IV Rating, and (iii) conduct operations in
1452	1452	19 accordance with Part 145 of the Federal Aviation Regulations;
1453	1453	20 and (B) persons who engage in the modification, replacement,
1454	1454	21 repair, and maintenance of aircraft engines or power plants
1455	1455	22 without regard to whether or not those persons meet the
1456	1456	23 qualifications of item (A).
1457	1457	24 The exemption does not include aircraft operated by a
1458	1458	25 commercial air carrier providing scheduled passenger air
1459	1459	26 service pursuant to authority issued under Part 121 or Part
1460	1460
1461	1461
1462	1462
1463	1463
1464	1464
1465	1465	SB2857 - 40 - LRB103 36897 HLH 67010 b
1466	1466
1467	1467
1468	1468	SB2857- 41 -LRB103 36897 HLH 67010 b SB2857 - 41 - LRB103 36897 HLH 67010 b
1469	1469	SB2857 - 41 - LRB103 36897 HLH 67010 b
1470	1470	1 129 of the Federal Aviation Regulations. The changes made to
1471	1471	2 this paragraph (27) by Public Act 98-534 are declarative of
1472	1472	3 existing law. It is the intent of the General Assembly that the
1473	1473	4 exemption under this paragraph (27) applies continuously from
1474	1474	5 January 1, 2010 through December 31, 2024; however, no claim
1475	1475	6 for credit or refund is allowed for taxes paid as a result of
1476	1476	7 the disallowance of this exemption on or after January 1, 2015
1477	1477	8 and prior to February 5, 2020 (the effective date of Public Act
1478	1478	9 101-629).
1479	1479	10 (28) Tangible personal property purchased by a
1480	1480	11 public-facilities corporation, as described in Section
1481	1481	12 11-65-10 of the Illinois Municipal Code, for purposes of
1482	1482	13 constructing or furnishing a municipal convention hall, but
1483	1483	14 only if the legal title to the municipal convention hall is
1484	1484	15 transferred to the municipality without any further
1485	1485	16 consideration by or on behalf of the municipality at the time
1486	1486	17 of the completion of the municipal convention hall or upon the
1487	1487	18 retirement or redemption of any bonds or other debt
1488	1488	19 instruments issued by the public-facilities corporation in
1489	1489	20 connection with the development of the municipal convention
1490	1490	21 hall. This exemption includes existing public-facilities
1491	1491	22 corporations as provided in Section 11-65-25 of the Illinois
1492	1492	23 Municipal Code. This paragraph is exempt from the provisions
1493	1493	24 of Section 3-75.
1494	1494	25 (29) Beginning January 1, 2017 and through December 31,
1495	1495	26 2026, menstrual pads, tampons, and menstrual cups.
1496	1496
1497	1497
1498	1498
1499	1499
1500	1500
1501	1501	SB2857 - 41 - LRB103 36897 HLH 67010 b
1502	1502
1503	1503
1504	1504	SB2857- 42 -LRB103 36897 HLH 67010 b SB2857 - 42 - LRB103 36897 HLH 67010 b
1505	1505	SB2857 - 42 - LRB103 36897 HLH 67010 b
1506	1506	1 (30) Tangible personal property transferred to a purchaser
1507	1507	2 who is exempt from the tax imposed by this Act by operation of
1508	1508	3 federal law. This paragraph is exempt from the provisions of
1509	1509	4 Section 3-75.
1510	1510	5 (31) Qualified tangible personal property used in the
1511	1511	6 construction or operation of a data center that has been
1512	1512	7 granted a certificate of exemption by the Department of
1513	1513	8 Commerce and Economic Opportunity, whether that tangible
1514	1514	9 personal property is purchased by the owner, operator, or
1515	1515	10 tenant of the data center or by a contractor or subcontractor
1516	1516	11 of the owner, operator, or tenant. Data centers that would
1517	1517	12 have qualified for a certificate of exemption prior to January
1518	1518	13 1, 2020 had Public Act 101-31 been in effect, may apply for and
1519	1519	14 obtain an exemption for subsequent purchases of computer
1520	1520	15 equipment or enabling software purchased or leased to upgrade,
1521	1521	16 supplement, or replace computer equipment or enabling software
1522	1522	17 purchased or leased in the original investment that would have
1523	1523	18 qualified.
1524	1524	19 The Department of Commerce and Economic Opportunity shall
1525	1525	20 grant a certificate of exemption under this item (31) to
1526	1526	21 qualified data centers as defined by Section 605-1025 of the
1527	1527	22 Department of Commerce and Economic Opportunity Law of the
1528	1528	23 Civil Administrative Code of Illinois.
1529	1529	24 For the purposes of this item (31):
1530	1530	25 "Data center" means a building or a series of
1531	1531	26 buildings rehabilitated or constructed to house working
1532	1532
1533	1533
1534	1534
1535	1535
1536	1536
1537	1537	SB2857 - 42 - LRB103 36897 HLH 67010 b
1538	1538
1539	1539
1540	1540	SB2857- 43 -LRB103 36897 HLH 67010 b SB2857 - 43 - LRB103 36897 HLH 67010 b
1541	1541	SB2857 - 43 - LRB103 36897 HLH 67010 b
1542	1542	1 servers in one physical location or multiple sites within
1543	1543	2 the State of Illinois.
1544	1544	3 "Qualified tangible personal property" means:
1545	1545	4 electrical systems and equipment; climate control and
1546	1546	5 chilling equipment and systems; mechanical systems and
1547	1547	6 equipment; monitoring and secure systems; emergency
1548	1548	7 generators; hardware; computers; servers; data storage
1549	1549	8 devices; network connectivity equipment; racks; cabinets;
1550	1550	9 telecommunications cabling infrastructure; raised floor
1551	1551	10 systems; peripheral components or systems; software;
1552	1552	11 mechanical, electrical, or plumbing systems; battery
1553	1553	12 systems; cooling systems and towers; temperature control
1554	1554	13 systems; other cabling; and other data center
1555	1555	14 infrastructure equipment and systems necessary to operate
1556	1556	15 qualified tangible personal property, including fixtures;
1557	1557	16 and component parts of any of the foregoing, including
1558	1558	17 installation, maintenance, repair, refurbishment, and
1559	1559	18 replacement of qualified tangible personal property to
1560	1560	19 generate, transform, transmit, distribute, or manage
1561	1561	20 electricity necessary to operate qualified tangible
1562	1562	21 personal property; and all other tangible personal
1563	1563	22 property that is essential to the operations of a computer
1564	1564	23 data center. The term "qualified tangible personal
1565	1565	24 property" also includes building materials physically
1566	1566	25 incorporated into in to the qualifying data center. To
1567	1567	26 document the exemption allowed under this Section, the
1568	1568
1569	1569
1570	1570
1571	1571
1572	1572
1573	1573	SB2857 - 43 - LRB103 36897 HLH 67010 b
1574	1574
1575	1575
1576	1576	SB2857- 44 -LRB103 36897 HLH 67010 b SB2857 - 44 - LRB103 36897 HLH 67010 b
1577	1577	SB2857 - 44 - LRB103 36897 HLH 67010 b
1578	1578	1 retailer must obtain from the purchaser a copy of the
1579	1579	2 certificate of eligibility issued by the Department of
1580	1580	3 Commerce and Economic Opportunity.
1581	1581	4 This item (31) is exempt from the provisions of Section
1582	1582	5 3-75.
1583	1583	6 (32) Beginning July 1, 2022, breast pumps, breast pump
1584	1584	7 collection and storage supplies, and breast pump kits. This
1585	1585	8 item (32) is exempt from the provisions of Section 3-75. As
1586	1586	9 used in this item (32):
1587	1587	10 "Breast pump" means an electrically controlled or
1588	1588	11 manually controlled pump device designed or marketed to be
1589	1589	12 used to express milk from a human breast during lactation,
1590	1590	13 including the pump device and any battery, AC adapter, or
1591	1591	14 other power supply unit that is used to power the pump
1592	1592	15 device and is packaged and sold with the pump device at the
1593	1593	16 time of sale.
1594	1594	17 "Breast pump collection and storage supplies" means
1595	1595	18 items of tangible personal property designed or marketed
1596	1596	19 to be used in conjunction with a breast pump to collect
1597	1597	20 milk expressed from a human breast and to store collected
1598	1598	21 milk until it is ready for consumption.
1599	1599	22 "Breast pump collection and storage supplies"
1600	1600	23 includes, but is not limited to: breast shields and breast
1601	1601	24 shield connectors; breast pump tubes and tubing adapters;
1602	1602	25 breast pump valves and membranes; backflow protectors and
1603	1603	26 backflow protector adaptors; bottles and bottle caps
1604	1604
1605	1605
1606	1606
1607	1607
1608	1608
1609	1609	SB2857 - 44 - LRB103 36897 HLH 67010 b
1610	1610
1611	1611
1612	1612	SB2857- 45 -LRB103 36897 HLH 67010 b SB2857 - 45 - LRB103 36897 HLH 67010 b
1613	1613	SB2857 - 45 - LRB103 36897 HLH 67010 b
1614	1614	1 specific to the operation of the breast pump; and breast
1615	1615	2 milk storage bags.
1616	1616	3 "Breast pump collection and storage supplies" does not
1617	1617	4 include: (1) bottles and bottle caps not specific to the
1618	1618	5 operation of the breast pump; (2) breast pump travel bags
1619	1619	6 and other similar carrying accessories, including ice
1620	1620	7 packs, labels, and other similar products; (3) breast pump
1621	1621	8 cleaning supplies; (4) nursing bras, bra pads, breast
1622	1622	9 shells, and other similar products; and (5) creams,
1623	1623	10 ointments, and other similar products that relieve
1624	1624	11 breastfeeding-related symptoms or conditions of the
1625	1625	12 breasts or nipples, unless sold as part of a breast pump
1626	1626	13 kit that is pre-packaged by the breast pump manufacturer
1627	1627	14 or distributor.
1628	1628	15 "Breast pump kit" means a kit that: (1) contains no
1629	1629	16 more than a breast pump, breast pump collection and
1630	1630	17 storage supplies, a rechargeable battery for operating the
1631	1631	18 breast pump, a breastmilk cooler, bottle stands, ice
1632	1632	19 packs, and a breast pump carrying case; and (2) is
1633	1633	20 pre-packaged as a breast pump kit by the breast pump
1634	1634	21 manufacturer or distributor.
1635	1635	22 (33) Tangible personal property sold by or on behalf of
1636	1636	23 the State Treasurer pursuant to the Revised Uniform Unclaimed
1637	1637	24 Property Act. This item (33) is exempt from the provisions of
1638	1638	25 Section 3-75.
1639	1639	26 (34) Beginning on January 1, 2024, tangible personal
1640	1640
1641	1641
1642	1642
1643	1643
1644	1644
1645	1645	SB2857 - 45 - LRB103 36897 HLH 67010 b
1646	1646
1647	1647
1648	1648	SB2857- 46 -LRB103 36897 HLH 67010 b SB2857 - 46 - LRB103 36897 HLH 67010 b
1649	1649	SB2857 - 46 - LRB103 36897 HLH 67010 b
1650	1650	1 property purchased by an active duty member of the armed
1651	1651	2 forces of the United States who presents valid military
1652	1652	3 identification and purchases the property using a form of
1653	1653	4 payment where the federal government is the payor. The member
1654	1654	5 of the armed forces must complete, at the point of sale, a form
1655	1655	6 prescribed by the Department of Revenue documenting that the
1656	1656	7 transaction is eligible for the exemption under this
1657	1657	8 paragraph. Retailers must keep the form as documentation of
1658	1658	9 the exemption in their records for a period of not less than 6
1659	1659	10 years. "Armed forces of the United States" means the United
1660	1660	11 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
1661	1661	12 This paragraph is exempt from the provisions of Section 3-75.
1662	1662	13 (35) Qualified tangible personal property that is (i) used
1663	1663	14 in the construction or development of a megaproject for which
1664	1664	15 a certificate has been issued prior to December 31, 2030 by the
1665	1665	16 Department of Commerce and Economic Opportunity under Division
1666	1666	17 22 of Article 10 of the Property Tax Code and (ii) purchased
1667	1667	18 prior to the Department's issuance of the megaproject
1668	1668	19 certificate or during the investment period, whether that
1669	1669	20 tangible personal property is purchased by the owner,
1670	1670	21 operator, or tenant of the megaproject or by a contractor or
1671	1671	22 subcontractor of the owner, operator, or tenant.
1672	1672	23 As used in this item (35):
1673	1673	24 "Facility" means a building or series of buildings.
1674	1674	25 "Investment period" means the period ending 7 years after
1675	1675	26 the date on which the Department of Commerce and Economic
1676	1676
1677	1677
1678	1678
1679	1679
1680	1680
1681	1681	SB2857 - 46 - LRB103 36897 HLH 67010 b
1682	1682
1683	1683
1684	1684	SB2857- 47 -LRB103 36897 HLH 67010 b SB2857 - 47 - LRB103 36897 HLH 67010 b
1685	1685	SB2857 - 47 - LRB103 36897 HLH 67010 b
1686	1686	1 Opportunity issues the megaproject certificate, or such other
1687	1687	2 longer period of time as the local municipality, local taxing
1688	1688	3 districts, and the company may agree to, not to exceed an
1689	1689	4 initial period of 10 years.
1690	1690	5 "Megaproject" means a facility that is rehabilitated or
1691	1691	6 constructed as described in Division 22 of Article 10 of the
1692	1692	7 Property Tax Code.
1693	1693	8 "Qualified tangible personal property" means all tangible
1694	1694	9 personal property that is essential to the construction or
1695	1695	10 development of a megaproject, including, but not limited to:
1696	1696	11 electrical systems and equipment; climate control and chilling
1697	1697	12 equipment and systems; mechanical systems and equipment;
1698	1698	13 monitoring and secure systems; emergency generators; hardware;
1699	1699	14 computers; servers; data storage devices; network connectivity
1700	1700	15 equipment; racks; cabinets; telecommunications cabling
1701	1701	16 infrastructure; raised floor systems; peripheral components or
1702	1702	17 systems; software; mechanical, electrical, or plumbing
1703	1703	18 systems; battery systems; cooling systems and towers;
1704	1704	19 temperature control systems; other cabling; and other
1705	1705	20 infrastructure, equipment, and systems necessary to operate
1706	1706	21 qualified tangible personal property, including fixtures; and
1707	1707	22 component parts of those items, including installation,
1708	1708	23 maintenance, repair, refurbishment, and replacement of
1709	1709	24 qualified tangible personal property to generate, transform,
1710	1710	25 transmit, distribute, or manage electricity necessary to
1711	1711	26 operate qualified tangible personal property. The term
1712	1712
1713	1713
1714	1714
1715	1715
1716	1716
1717	1717	SB2857 - 47 - LRB103 36897 HLH 67010 b
1718	1718
1719	1719
1720	1720	SB2857- 48 -LRB103 36897 HLH 67010 b SB2857 - 48 - LRB103 36897 HLH 67010 b
1721	1721	SB2857 - 48 - LRB103 36897 HLH 67010 b
1722	1722	1 "qualified tangible personal property" also includes building
1723	1723	2 materials to be incorporated into the megaproject. To document
1724	1724	3 the exemption allowed under this Section, the retailer,
1725	1725	4 contractor, subcontractor, or supplier must obtain from the
1726	1726	5 purchaser a copy of the certificate issued by the Department
1727	1727	6 of Commerce and Economic Opportunity for the megaproject as
1728	1728	7 described and defined in Division 22 of Article 10 of the
1729	1729	8 Property Tax Code.
1730	1730	9 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
1731	1731	10 Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1732	1732	11 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
1733	1733	12 Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
1734	1734	13 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
1735	1735	14 revised 12-12-23.)
1736	1736	15 Section 15. The Service Occupation Tax Act is amended by
1737	1737	16 changing Section 3-5 as follows:
1738	1738	17 (35 ILCS 115/3-5)
1739	1739	18 Sec. 3-5. Exemptions. The following tangible personal
1740	1740	19 property is exempt from the tax imposed by this Act:
1741	1741	20 (1) Personal property sold by a corporation, society,
1742	1742	21 association, foundation, institution, or organization, other
1743	1743	22 than a limited liability company, that is organized and
1744	1744	23 operated as a not-for-profit service enterprise for the
1745	1745	24 benefit of persons 65 years of age or older if the personal
1746	1746
1747	1747
1748	1748
1749	1749
1750	1750
1751	1751	SB2857 - 48 - LRB103 36897 HLH 67010 b
1752	1752
1753	1753
1754	1754	SB2857- 49 -LRB103 36897 HLH 67010 b SB2857 - 49 - LRB103 36897 HLH 67010 b
1755	1755	SB2857 - 49 - LRB103 36897 HLH 67010 b
1756	1756	1 property was not purchased by the enterprise for the purpose
1757	1757	2 of resale by the enterprise.
1758	1758	3 (2) Personal property purchased by a not-for-profit
1759	1759	4 Illinois county fair association for use in conducting,
1760	1760	5 operating, or promoting the county fair.
1761	1761	6 (3) Personal property purchased by any not-for-profit arts
1762	1762	7 or cultural organization that establishes, by proof required
1763	1763	8 by the Department by rule, that it has received an exemption
1764	1764	9 under Section 501(c)(3) of the Internal Revenue Code and that
1765	1765	10 is organized and operated primarily for the presentation or
1766	1766	11 support of arts or cultural programming, activities, or
1767	1767	12 services. These organizations include, but are not limited to,
1768	1768	13 music and dramatic arts organizations such as symphony
1769	1769	14 orchestras and theatrical groups, arts and cultural service
1770	1770	15 organizations, local arts councils, visual arts organizations,
1771	1771	16 and media arts organizations. On and after July 1, 2001 (the
1772	1772	17 effective date of Public Act 92-35), however, an entity
1773	1773	18 otherwise eligible for this exemption shall not make tax-free
1774	1774	19 purchases unless it has an active identification number issued
1775	1775	20 by the Department.
1776	1776	21 (4) Legal tender, currency, medallions, or gold or silver
1777	1777	22 coinage issued by the State of Illinois, the government of the
1778	1778	23 United States of America, or the government of any foreign
1779	1779	24 country, and bullion.
1780	1780	25 (5) Until July 1, 2003 and beginning again on September 1,
1781	1781	26 2004 through August 30, 2014, graphic arts machinery and
1782	1782
1783	1783
1784	1784
1785	1785
1786	1786
1787	1787	SB2857 - 49 - LRB103 36897 HLH 67010 b
1788	1788
1789	1789
1790	1790	SB2857- 50 -LRB103 36897 HLH 67010 b SB2857 - 50 - LRB103 36897 HLH 67010 b
1791	1791	SB2857 - 50 - LRB103 36897 HLH 67010 b
1792	1792	1 equipment, including repair and replacement parts, both new
1793	1793	2 and used, and including that manufactured on special order or
1794	1794	3 purchased for lease, certified by the purchaser to be used
1795	1795	4 primarily for graphic arts production. Equipment includes
1796	1796	5 chemicals or chemicals acting as catalysts but only if the
1797	1797	6 chemicals or chemicals acting as catalysts effect a direct and
1798	1798	7 immediate change upon a graphic arts product. Beginning on
1799	1799	8 July 1, 2017, graphic arts machinery and equipment is included
1800	1800	9 in the manufacturing and assembling machinery and equipment
1801	1801	10 exemption under Section 2 of this Act.
1802	1802	11 (6) Personal property sold by a teacher-sponsored student
1803	1803	12 organization affiliated with an elementary or secondary school
1804	1804	13 located in Illinois.
1805	1805	14 (7) Farm machinery and equipment, both new and used,
1806	1806	15 including that manufactured on special order, certified by the
1807	1807	16 purchaser to be used primarily for production agriculture or
1808	1808	17 State or federal agricultural programs, including individual
1809	1809	18 replacement parts for the machinery and equipment, including
1810	1810	19 machinery and equipment purchased for lease, and including
1811	1811	20 implements of husbandry defined in Section 1-130 of the
1812	1812	21 Illinois Vehicle Code, farm machinery and agricultural
1813	1813	22 chemical and fertilizer spreaders, and nurse wagons required
1814	1814	23 to be registered under Section 3-809 of the Illinois Vehicle
1815	1815	24 Code, but excluding other motor vehicles required to be
1816	1816	25 registered under the Illinois Vehicle Code. Horticultural
1817	1817	26 polyhouses or hoop houses used for propagating, growing, or
1818	1818
1819	1819
1820	1820
1821	1821
1822	1822
1823	1823	SB2857 - 50 - LRB103 36897 HLH 67010 b
1824	1824
1825	1825
1826	1826	SB2857- 51 -LRB103 36897 HLH 67010 b SB2857 - 51 - LRB103 36897 HLH 67010 b
1827	1827	SB2857 - 51 - LRB103 36897 HLH 67010 b
1828	1828	1 overwintering plants shall be considered farm machinery and
1829	1829	2 equipment under this item (7). Agricultural chemical tender
1830	1830	3 tanks and dry boxes shall include units sold separately from a
1831	1831	4 motor vehicle required to be licensed and units sold mounted
1832	1832	5 on a motor vehicle required to be licensed if the selling price
1833	1833	6 of the tender is separately stated.
1834	1834	7 Farm machinery and equipment shall include precision
1835	1835	8 farming equipment that is installed or purchased to be
1836	1836	9 installed on farm machinery and equipment, including, but not
1837	1837	10 limited to, tractors, harvesters, sprayers, planters, seeders,
1838	1838	11 or spreaders. Precision farming equipment includes, but is not
1839	1839	12 limited to, soil testing sensors, computers, monitors,
1840	1840	13 software, global positioning and mapping systems, and other
1841	1841	14 such equipment.
1842	1842	15 Farm machinery and equipment also includes computers,
1843	1843	16 sensors, software, and related equipment used primarily in the
1844	1844	17 computer-assisted operation of production agriculture
1845	1845	18 facilities, equipment, and activities such as, but not limited
1846	1846	19 to, the collection, monitoring, and correlation of animal and
1847	1847	20 crop data for the purpose of formulating animal diets and
1848	1848	21 agricultural chemicals.
1849	1849	22 Beginning on January 1, 2024, farm machinery and equipment
1850	1850	23 also includes electrical power generation equipment used
1851	1851	24 primarily for production agriculture.
1852	1852	25 This item (7) is exempt from the provisions of Section
1853	1853	26 3-55.
1854	1854
1855	1855
1856	1856
1857	1857
1858	1858
1859	1859	SB2857 - 51 - LRB103 36897 HLH 67010 b
1860	1860
1861	1861
1862	1862	SB2857- 52 -LRB103 36897 HLH 67010 b SB2857 - 52 - LRB103 36897 HLH 67010 b
1863	1863	SB2857 - 52 - LRB103 36897 HLH 67010 b
1864	1864	1 (8) Until June 30, 2013, fuel and petroleum products sold
1865	1865	2 to or used by an air common carrier, certified by the carrier
1866	1866	3 to be used for consumption, shipment, or storage in the
1867	1867	4 conduct of its business as an air common carrier, for a flight
1868	1868	5 destined for or returning from a location or locations outside
1869	1869	6 the United States without regard to previous or subsequent
1870	1870	7 domestic stopovers.
1871	1871	8 Beginning July 1, 2013, fuel and petroleum products sold
1872	1872	9 to or used by an air carrier, certified by the carrier to be
1873	1873	10 used for consumption, shipment, or storage in the conduct of
1874	1874	11 its business as an air common carrier, for a flight that (i) is
1875	1875	12 engaged in foreign trade or is engaged in trade between the
1876	1876	13 United States and any of its possessions and (ii) transports
1877	1877	14 at least one individual or package for hire from the city of
1878	1878	15 origination to the city of final destination on the same
1879	1879	16 aircraft, without regard to a change in the flight number of
1880	1880	17 that aircraft.
1881	1881	18 (9) Proceeds of mandatory service charges separately
1882	1882	19 stated on customers' bills for the purchase and consumption of
1883	1883	20 food and beverages, to the extent that the proceeds of the
1884	1884	21 service charge are in fact turned over as tips or as a
1885	1885	22 substitute for tips to the employees who participate directly
1886	1886	23 in preparing, serving, hosting or cleaning up the food or
1887	1887	24 beverage function with respect to which the service charge is
1888	1888	25 imposed.
1889	1889	26 (10) Until July 1, 2003, oil field exploration, drilling,
1890	1890
1891	1891
1892	1892
1893	1893
1894	1894
1895	1895	SB2857 - 52 - LRB103 36897 HLH 67010 b
1896	1896
1897	1897
1898	1898	SB2857- 53 -LRB103 36897 HLH 67010 b SB2857 - 53 - LRB103 36897 HLH 67010 b
1899	1899	SB2857 - 53 - LRB103 36897 HLH 67010 b
1900	1900	1 and production equipment, including (i) rigs and parts of
1901	1901	2 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1902	1902	3 pipe and tubular goods, including casing and drill strings,
1903	1903	4 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1904	1904	5 lines, (v) any individual replacement part for oil field
1905	1905	6 exploration, drilling, and production equipment, and (vi)
1906	1906	7 machinery and equipment purchased for lease; but excluding
1907	1907	8 motor vehicles required to be registered under the Illinois
1908	1908	9 Vehicle Code.
1909	1909	10 (11) Photoprocessing machinery and equipment, including
1910	1910	11 repair and replacement parts, both new and used, including
1911	1911	12 that manufactured on special order, certified by the purchaser
1912	1912	13 to be used primarily for photoprocessing, and including
1913	1913	14 photoprocessing machinery and equipment purchased for lease.
1914	1914	15 (12) Until July 1, 2028, coal and aggregate exploration,
1915	1915	16 mining, off-highway hauling, processing, maintenance, and
1916	1916	17 reclamation equipment, including replacement parts and
1917	1917	18 equipment, and including equipment purchased for lease, but
1918	1918	19 excluding motor vehicles required to be registered under the
1919	1919	20 Illinois Vehicle Code. The changes made to this Section by
1920	1920	21 Public Act 97-767 apply on and after July 1, 2003, but no claim
1921	1921	22 for credit or refund is allowed on or after August 16, 2013
1922	1922	23 (the effective date of Public Act 98-456) for such taxes paid
1923	1923	24 during the period beginning July 1, 2003 and ending on August
1924	1924	25 16, 2013 (the effective date of Public Act 98-456).
1925	1925	26 (13) Beginning January 1, 1992 and through June 30, 2016,
1926	1926
1927	1927
1928	1928
1929	1929
1930	1930
1931	1931	SB2857 - 53 - LRB103 36897 HLH 67010 b
1932	1932
1933	1933
1934	1934	SB2857- 54 -LRB103 36897 HLH 67010 b SB2857 - 54 - LRB103 36897 HLH 67010 b
1935	1935	SB2857 - 54 - LRB103 36897 HLH 67010 b
1936	1936	1 food for human consumption that is to be consumed off the
1937	1937	2 premises where it is sold (other than alcoholic beverages,
1938	1938	3 soft drinks and food that has been prepared for immediate
1939	1939	4 consumption) and prescription and non-prescription medicines,
1940	1940	5 drugs, medical appliances, and insulin, urine testing
1941	1941	6 materials, syringes, and needles used by diabetics, for human
1942	1942	7 use, when purchased for use by a person receiving medical
1943	1943	8 assistance under Article V of the Illinois Public Aid Code who
1944	1944	9 resides in a licensed long-term care facility, as defined in
1945	1945	10 the Nursing Home Care Act, or in a licensed facility as defined
1946	1946	11 in the ID/DD Community Care Act, the MC/DD Act, or the
1947	1947	12 Specialized Mental Health Rehabilitation Act of 2013.
1948	1948	13 (14) Semen used for artificial insemination of livestock
1949	1949	14 for direct agricultural production.
1950	1950	15 (15) Horses, or interests in horses, registered with and
1951	1951	16 meeting the requirements of any of the Arabian Horse Club
1952	1952	17 Registry of America, Appaloosa Horse Club, American Quarter
1953	1953	18 Horse Association, United States Trotting Association, or
1954	1954	19 Jockey Club, as appropriate, used for purposes of breeding or
1955	1955	20 racing for prizes. This item (15) is exempt from the
1956	1956	21 provisions of Section 3-55, and the exemption provided for
1957	1957	22 under this item (15) applies for all periods beginning May 30,
1958	1958	23 1995, but no claim for credit or refund is allowed on or after
1959	1959	24 January 1, 2008 (the effective date of Public Act 95-88) for
1960	1960	25 such taxes paid during the period beginning May 30, 2000 and
1961	1961	26 ending on January 1, 2008 (the effective date of Public Act
1962	1962
1963	1963
1964	1964
1965	1965
1966	1966
1967	1967	SB2857 - 54 - LRB103 36897 HLH 67010 b
1968	1968
1969	1969
1970	1970	SB2857- 55 -LRB103 36897 HLH 67010 b SB2857 - 55 - LRB103 36897 HLH 67010 b
1971	1971	SB2857 - 55 - LRB103 36897 HLH 67010 b
1972	1972	1 95-88).
1973	1973	2 (16) Computers and communications equipment utilized for
1974	1974	3 any hospital purpose and equipment used in the diagnosis,
1975	1975	4 analysis, or treatment of hospital patients sold to a lessor
1976	1976	5 who leases the equipment, under a lease of one year or longer
1977	1977	6 executed or in effect at the time of the purchase, to a
1978	1978	7 hospital that has been issued an active tax exemption
1979	1979	8 identification number by the Department under Section 1g of
1980	1980	9 the Retailers' Occupation Tax Act.
1981	1981	10 (17) Personal property sold to a lessor who leases the
1982	1982	11 property, under a lease of one year or longer executed or in
1983	1983	12 effect at the time of the purchase, to a governmental body that
1984	1984	13 has been issued an active tax exemption identification number
1985	1985	14 by the Department under Section 1g of the Retailers'
1986	1986	15 Occupation Tax Act.
1987	1987	16 (18) Beginning with taxable years ending on or after
1988	1988	17 December 31, 1995 and ending with taxable years ending on or
1989	1989	18 before December 31, 2004, personal property that is donated
1990	1990	19 for disaster relief to be used in a State or federally declared
1991	1991	20 disaster area in Illinois or bordering Illinois by a
1992	1992	21 manufacturer or retailer that is registered in this State to a
1993	1993	22 corporation, society, association, foundation, or institution
1994	1994	23 that has been issued a sales tax exemption identification
1995	1995	24 number by the Department that assists victims of the disaster
1996	1996	25 who reside within the declared disaster area.
1997	1997	26 (19) Beginning with taxable years ending on or after
1998	1998
1999	1999
2000	2000
2001	2001
2002	2002
2003	2003	SB2857 - 55 - LRB103 36897 HLH 67010 b
2004	2004
2005	2005
2006	2006	SB2857- 56 -LRB103 36897 HLH 67010 b SB2857 - 56 - LRB103 36897 HLH 67010 b
2007	2007	SB2857 - 56 - LRB103 36897 HLH 67010 b
2008	2008	1 December 31, 1995 and ending with taxable years ending on or
2009	2009	2 before December 31, 2004, personal property that is used in
2010	2010	3 the performance of infrastructure repairs in this State,
2011	2011	4 including, but not limited to, municipal roads and streets,
2012	2012	5 access roads, bridges, sidewalks, waste disposal systems,
2013	2013	6 water and sewer line extensions, water distribution and
2014	2014	7 purification facilities, storm water drainage and retention
2015	2015	8 facilities, and sewage treatment facilities, resulting from a
2016	2016	9 State or federally declared disaster in Illinois or bordering
2017	2017	10 Illinois when such repairs are initiated on facilities located
2018	2018	11 in the declared disaster area within 6 months after the
2019	2019	12 disaster.
2020	2020	13 (20) Beginning July 1, 1999, game or game birds sold at a
2021	2021	14 "game breeding and hunting preserve area" as that term is used
2022	2022	15 in the Wildlife Code. This paragraph is exempt from the
2023	2023	16 provisions of Section 3-55.
2024	2024	17 (21) A motor vehicle, as that term is defined in Section
2025	2025	18 1-146 of the Illinois Vehicle Code, that is donated to a
2026	2026	19 corporation, limited liability company, society, association,
2027	2027	20 foundation, or institution that is determined by the
2028	2028	21 Department to be organized and operated exclusively for
2029	2029	22 educational purposes. For purposes of this exemption, "a
2030	2030	23 corporation, limited liability company, society, association,
2031	2031	24 foundation, or institution organized and operated exclusively
2032	2032	25 for educational purposes" means all tax-supported public
2033	2033	26 schools, private schools that offer systematic instruction in
2034	2034
2035	2035
2036	2036
2037	2037
2038	2038
2039	2039	SB2857 - 56 - LRB103 36897 HLH 67010 b
2040	2040
2041	2041
2042	2042	SB2857- 57 -LRB103 36897 HLH 67010 b SB2857 - 57 - LRB103 36897 HLH 67010 b
2043	2043	SB2857 - 57 - LRB103 36897 HLH 67010 b
2044	2044	1 useful branches of learning by methods common to public
2045	2045	2 schools and that compare favorably in their scope and
2046	2046	3 intensity with the course of study presented in tax-supported
2047	2047	4 schools, and vocational or technical schools or institutes
2048	2048	5 organized and operated exclusively to provide a course of
2049	2049	6 study of not less than 6 weeks duration and designed to prepare
2050	2050	7 individuals to follow a trade or to pursue a manual,
2051	2051	8 technical, mechanical, industrial, business, or commercial
2052	2052	9 occupation.
2053	2053	10 (22) Beginning January 1, 2000, personal property,
2054	2054	11 including food, purchased through fundraising events for the
2055	2055	12 benefit of a public or private elementary or secondary school,
2056	2056	13 a group of those schools, or one or more school districts if
2057	2057	14 the events are sponsored by an entity recognized by the school
2058	2058	15 district that consists primarily of volunteers and includes
2059	2059	16 parents and teachers of the school children. This paragraph
2060	2060	17 does not apply to fundraising events (i) for the benefit of
2061	2061	18 private home instruction or (ii) for which the fundraising
2062	2062	19 entity purchases the personal property sold at the events from
2063	2063	20 another individual or entity that sold the property for the
2064	2064	21 purpose of resale by the fundraising entity and that profits
2065	2065	22 from the sale to the fundraising entity. This paragraph is
2066	2066	23 exempt from the provisions of Section 3-55.
2067	2067	24 (23) Beginning January 1, 2000 and through December 31,
2068	2068	25 2001, new or used automatic vending machines that prepare and
2069	2069	26 serve hot food and beverages, including coffee, soup, and
2070	2070
2071	2071
2072	2072
2073	2073
2074	2074
2075	2075	SB2857 - 57 - LRB103 36897 HLH 67010 b
2076	2076
2077	2077
2078	2078	SB2857- 58 -LRB103 36897 HLH 67010 b SB2857 - 58 - LRB103 36897 HLH 67010 b
2079	2079	SB2857 - 58 - LRB103 36897 HLH 67010 b
2080	2080	1 other items, and replacement parts for these machines.
2081	2081	2 Beginning January 1, 2002 and through June 30, 2003, machines
2082	2082	3 and parts for machines used in commercial, coin-operated
2083	2083	4 amusement and vending business if a use or occupation tax is
2084	2084	5 paid on the gross receipts derived from the use of the
2085	2085	6 commercial, coin-operated amusement and vending machines. This
2086	2086	7 paragraph is exempt from the provisions of Section 3-55.
2087	2087	8 (24) Beginning on August 2, 2001 (the effective date of
2088	2088	9 Public Act 92-227), computers and communications equipment
2089	2089	10 utilized for any hospital purpose and equipment used in the
2090	2090	11 diagnosis, analysis, or treatment of hospital patients sold to
2091	2091	12 a lessor who leases the equipment, under a lease of one year or
2092	2092	13 longer executed or in effect at the time of the purchase, to a
2093	2093	14 hospital that has been issued an active tax exemption
2094	2094	15 identification number by the Department under Section 1g of
2095	2095	16 the Retailers' Occupation Tax Act. This paragraph is exempt
2096	2096	17 from the provisions of Section 3-55.
2097	2097	18 (25) Beginning on August 2, 2001 (the effective date of
2098	2098	19 Public Act 92-227), personal property sold to a lessor who
2099	2099	20 leases the property, under a lease of one year or longer
2100	2100	21 executed or in effect at the time of the purchase, to a
2101	2101	22 governmental body that has been issued an active tax exemption
2102	2102	23 identification number by the Department under Section 1g of
2103	2103	24 the Retailers' Occupation Tax Act. This paragraph is exempt
2104	2104	25 from the provisions of Section 3-55.
2105	2105	26 (26) Beginning on January 1, 2002 and through June 30,
2106	2106
2107	2107
2108	2108
2109	2109
2110	2110
2111	2111	SB2857 - 58 - LRB103 36897 HLH 67010 b
2112	2112
2113	2113
2114	2114	SB2857- 59 -LRB103 36897 HLH 67010 b SB2857 - 59 - LRB103 36897 HLH 67010 b
2115	2115	SB2857 - 59 - LRB103 36897 HLH 67010 b
2116	2116	1 2016, tangible personal property purchased from an Illinois
2117	2117	2 retailer by a taxpayer engaged in centralized purchasing
2118	2118	3 activities in Illinois who will, upon receipt of the property
2119	2119	4 in Illinois, temporarily store the property in Illinois (i)
2120	2120	5 for the purpose of subsequently transporting it outside this
2121	2121	6 State for use or consumption thereafter solely outside this
2122	2122	7 State or (ii) for the purpose of being processed, fabricated,
2123	2123	8 or manufactured into, attached to, or incorporated into other
2124	2124	9 tangible personal property to be transported outside this
2125	2125	10 State and thereafter used or consumed solely outside this
2126	2126	11 State. The Director of Revenue shall, pursuant to rules
2127	2127	12 adopted in accordance with the Illinois Administrative
2128	2128	13 Procedure Act, issue a permit to any taxpayer in good standing
2129	2129	14 with the Department who is eligible for the exemption under
2130	2130	15 this paragraph (26). The permit issued under this paragraph
2131	2131	16 (26) shall authorize the holder, to the extent and in the
2132	2132	17 manner specified in the rules adopted under this Act, to
2133	2133	18 purchase tangible personal property from a retailer exempt
2134	2134	19 from the taxes imposed by this Act. Taxpayers shall maintain
2135	2135	20 all necessary books and records to substantiate the use and
2136	2136	21 consumption of all such tangible personal property outside of
2137	2137	22 the State of Illinois.
2138	2138	23 (27) Beginning January 1, 2008, tangible personal property
2139	2139	24 used in the construction or maintenance of a community water
2140	2140	25 supply, as defined under Section 3.145 of the Environmental
2141	2141	26 Protection Act, that is operated by a not-for-profit
2142	2142
2143	2143
2144	2144
2145	2145
2146	2146
2147	2147	SB2857 - 59 - LRB103 36897 HLH 67010 b
2148	2148
2149	2149
2150	2150	SB2857- 60 -LRB103 36897 HLH 67010 b SB2857 - 60 - LRB103 36897 HLH 67010 b
2151	2151	SB2857 - 60 - LRB103 36897 HLH 67010 b
2152	2152	1 corporation that holds a valid water supply permit issued
2153	2153	2 under Title IV of the Environmental Protection Act. This
2154	2154	3 paragraph is exempt from the provisions of Section 3-55.
2155	2155	4 (28) Tangible personal property sold to a
2156	2156	5 public-facilities corporation, as described in Section
2157	2157	6 11-65-10 of the Illinois Municipal Code, for purposes of
2158	2158	7 constructing or furnishing a municipal convention hall, but
2159	2159	8 only if the legal title to the municipal convention hall is
2160	2160	9 transferred to the municipality without any further
2161	2161	10 consideration by or on behalf of the municipality at the time
2162	2162	11 of the completion of the municipal convention hall or upon the
2163	2163	12 retirement or redemption of any bonds or other debt
2164	2164	13 instruments issued by the public-facilities corporation in
2165	2165	14 connection with the development of the municipal convention
2166	2166	15 hall. This exemption includes existing public-facilities
2167	2167	16 corporations as provided in Section 11-65-25 of the Illinois
2168	2168	17 Municipal Code. This paragraph is exempt from the provisions
2169	2169	18 of Section 3-55.
2170	2170	19 (29) Beginning January 1, 2010 and continuing through
2171	2171	20 December 31, 2029, materials, parts, equipment, components,
2172	2172	21 and furnishings incorporated into or upon an aircraft as part
2173	2173	22 of the modification, refurbishment, completion, replacement,
2174	2174	23 repair, or maintenance of the aircraft. This exemption
2175	2175	24 includes consumable supplies used in the modification,
2176	2176	25 refurbishment, completion, replacement, repair, and
2177	2177	26 maintenance of aircraft. However, until January 1, 2024, this
2178	2178
2179	2179
2180	2180
2181	2181
2182	2182
2183	2183	SB2857 - 60 - LRB103 36897 HLH 67010 b
2184	2184
2185	2185
2186	2186	SB2857- 61 -LRB103 36897 HLH 67010 b SB2857 - 61 - LRB103 36897 HLH 67010 b
2187	2187	SB2857 - 61 - LRB103 36897 HLH 67010 b
2188	2188	1 exemption excludes any materials, parts, equipment,
2189	2189	2 components, and consumable supplies used in the modification,
2190	2190	3 replacement, repair, and maintenance of aircraft engines or
2191	2191	4 power plants, whether such engines or power plants are
2192	2192	5 installed or uninstalled upon any such aircraft. "Consumable
2193	2193	6 supplies" include, but are not limited to, adhesive, tape,
2194	2194	7 sandpaper, general purpose lubricants, cleaning solution,
2195	2195	8 latex gloves, and protective films.
2196	2196	9 Beginning January 1, 2010 and continuing through December
2197	2197	10 31, 2023, this exemption applies only to the transfer of
2198	2198	11 qualifying tangible personal property incident to the
2199	2199	12 modification, refurbishment, completion, replacement, repair,
2200	2200	13 or maintenance of an aircraft by persons who (i) hold an Air
2201	2201	14 Agency Certificate and are empowered to operate an approved
2202	2202	15 repair station by the Federal Aviation Administration, (ii)
2203	2203	16 have a Class IV Rating, and (iii) conduct operations in
2204	2204	17 accordance with Part 145 of the Federal Aviation Regulations.
2205	2205	18 The exemption does not include aircraft operated by a
2206	2206	19 commercial air carrier providing scheduled passenger air
2207	2207	20 service pursuant to authority issued under Part 121 or Part
2208	2208	21 129 of the Federal Aviation Regulations. From January 1, 2024
2209	2209	22 through December 31, 2029, this exemption applies only to the
2210	2210	23 use of qualifying tangible personal property by: (A) persons
2211	2211	24 who modify, refurbish, complete, repair, replace, or maintain
2212	2212	25 aircraft and who (i) hold an Air Agency Certificate and are
2213	2213	26 empowered to operate an approved repair station by the Federal
2214	2214
2215	2215
2216	2216
2217	2217
2218	2218
2219	2219	SB2857 - 61 - LRB103 36897 HLH 67010 b
2220	2220
2221	2221
2222	2222	SB2857- 62 -LRB103 36897 HLH 67010 b SB2857 - 62 - LRB103 36897 HLH 67010 b
2223	2223	SB2857 - 62 - LRB103 36897 HLH 67010 b
2224	2224	1 Aviation Administration, (ii) have a Class IV Rating, and
2225	2225	2 (iii) conduct operations in accordance with Part 145 of the
2226	2226	3 Federal Aviation Regulations; and (B) persons who engage in
2227	2227	4 the modification, replacement, repair, and maintenance of
2228	2228	5 aircraft engines or power plants without regard to whether or
2229	2229	6 not those persons meet the qualifications of item (A).
2230	2230	7 The changes made to this paragraph (29) by Public Act
2231	2231	8 98-534 are declarative of existing law. It is the intent of the
2232	2232	9 General Assembly that the exemption under this paragraph (29)
2233	2233	10 applies continuously from January 1, 2010 through December 31,
2234	2234	11 2024; however, no claim for credit or refund is allowed for
2235	2235	12 taxes paid as a result of the disallowance of this exemption on
2236	2236	13 or after January 1, 2015 and prior to February 5, 2020 (the
2237	2237	14 effective date of Public Act 101-629).
2238	2238	15 (30) Beginning January 1, 2017 and through December 31,
2239	2239	16 2026, menstrual pads, tampons, and menstrual cups.
2240	2240	17 (31) Tangible personal property transferred to a purchaser
2241	2241	18 who is exempt from tax by operation of federal law. This
2242	2242	19 paragraph is exempt from the provisions of Section 3-55.
2243	2243	20 (32) Qualified tangible personal property used in the
2244	2244	21 construction or operation of a data center that has been
2245	2245	22 granted a certificate of exemption by the Department of
2246	2246	23 Commerce and Economic Opportunity, whether that tangible
2247	2247	24 personal property is purchased by the owner, operator, or
2248	2248	25 tenant of the data center or by a contractor or subcontractor
2249	2249	26 of the owner, operator, or tenant. Data centers that would
2250	2250
2251	2251
2252	2252
2253	2253
2254	2254
2255	2255	SB2857 - 62 - LRB103 36897 HLH 67010 b
2256	2256
2257	2257
2258	2258	SB2857- 63 -LRB103 36897 HLH 67010 b SB2857 - 63 - LRB103 36897 HLH 67010 b
2259	2259	SB2857 - 63 - LRB103 36897 HLH 67010 b
2260	2260	1 have qualified for a certificate of exemption prior to January
2261	2261	2 1, 2020 had Public Act 101-31 been in effect, may apply for and
2262	2262	3 obtain an exemption for subsequent purchases of computer
2263	2263	4 equipment or enabling software purchased or leased to upgrade,
2264	2264	5 supplement, or replace computer equipment or enabling software
2265	2265	6 purchased or leased in the original investment that would have
2266	2266	7 qualified.
2267	2267	8 The Department of Commerce and Economic Opportunity shall
2268	2268	9 grant a certificate of exemption under this item (32) to
2269	2269	10 qualified data centers as defined by Section 605-1025 of the
2270	2270	11 Department of Commerce and Economic Opportunity Law of the
2271	2271	12 Civil Administrative Code of Illinois.
2272	2272	13 For the purposes of this item (32):
2273	2273	14 "Data center" means a building or a series of
2274	2274	15 buildings rehabilitated or constructed to house working
2275	2275	16 servers in one physical location or multiple sites within
2276	2276	17 the State of Illinois.
2277	2277	18 "Qualified tangible personal property" means:
2278	2278	19 electrical systems and equipment; climate control and
2279	2279	20 chilling equipment and systems; mechanical systems and
2280	2280	21 equipment; monitoring and secure systems; emergency
2281	2281	22 generators; hardware; computers; servers; data storage
2282	2282	23 devices; network connectivity equipment; racks; cabinets;
2283	2283	24 telecommunications cabling infrastructure; raised floor
2284	2284	25 systems; peripheral components or systems; software;
2285	2285	26 mechanical, electrical, or plumbing systems; battery
2286	2286
2287	2287
2288	2288
2289	2289
2290	2290
2291	2291	SB2857 - 63 - LRB103 36897 HLH 67010 b
2292	2292
2293	2293
2294	2294	SB2857- 64 -LRB103 36897 HLH 67010 b SB2857 - 64 - LRB103 36897 HLH 67010 b
2295	2295	SB2857 - 64 - LRB103 36897 HLH 67010 b
2296	2296	1 systems; cooling systems and towers; temperature control
2297	2297	2 systems; other cabling; and other data center
2298	2298	3 infrastructure equipment and systems necessary to operate
2299	2299	4 qualified tangible personal property, including fixtures;
2300	2300	5 and component parts of any of the foregoing, including
2301	2301	6 installation, maintenance, repair, refurbishment, and
2302	2302	7 replacement of qualified tangible personal property to
2303	2303	8 generate, transform, transmit, distribute, or manage
2304	2304	9 electricity necessary to operate qualified tangible
2305	2305	10 personal property; and all other tangible personal
2306	2306	11 property that is essential to the operations of a computer
2307	2307	12 data center. The term "qualified tangible personal
2308	2308	13 property" also includes building materials physically
2309	2309	14 incorporated into in to the qualifying data center. To
2310	2310	15 document the exemption allowed under this Section, the
2311	2311	16 retailer must obtain from the purchaser a copy of the
2312	2312	17 certificate of eligibility issued by the Department of
2313	2313	18 Commerce and Economic Opportunity.
2314	2314	19 This item (32) is exempt from the provisions of Section
2315	2315	20 3-55.
2316	2316	21 (33) Beginning July 1, 2022, breast pumps, breast pump
2317	2317	22 collection and storage supplies, and breast pump kits. This
2318	2318	23 item (33) is exempt from the provisions of Section 3-55. As
2319	2319	24 used in this item (33):
2320	2320	25 "Breast pump" means an electrically controlled or
2321	2321	26 manually controlled pump device designed or marketed to be
2322	2322
2323	2323
2324	2324
2325	2325
2326	2326
2327	2327	SB2857 - 64 - LRB103 36897 HLH 67010 b
2328	2328
2329	2329
2330	2330	SB2857- 65 -LRB103 36897 HLH 67010 b SB2857 - 65 - LRB103 36897 HLH 67010 b
2331	2331	SB2857 - 65 - LRB103 36897 HLH 67010 b
2332	2332	1 used to express milk from a human breast during lactation,
2333	2333	2 including the pump device and any battery, AC adapter, or
2334	2334	3 other power supply unit that is used to power the pump
2335	2335	4 device and is packaged and sold with the pump device at the
2336	2336	5 time of sale.
2337	2337	6 "Breast pump collection and storage supplies" means
2338	2338	7 items of tangible personal property designed or marketed
2339	2339	8 to be used in conjunction with a breast pump to collect
2340	2340	9 milk expressed from a human breast and to store collected
2341	2341	10 milk until it is ready for consumption.
2342	2342	11 "Breast pump collection and storage supplies"
2343	2343	12 includes, but is not limited to: breast shields and breast
2344	2344	13 shield connectors; breast pump tubes and tubing adapters;
2345	2345	14 breast pump valves and membranes; backflow protectors and
2346	2346	15 backflow protector adaptors; bottles and bottle caps
2347	2347	16 specific to the operation of the breast pump; and breast
2348	2348	17 milk storage bags.
2349	2349	18 "Breast pump collection and storage supplies" does not
2350	2350	19 include: (1) bottles and bottle caps not specific to the
2351	2351	20 operation of the breast pump; (2) breast pump travel bags
2352	2352	21 and other similar carrying accessories, including ice
2353	2353	22 packs, labels, and other similar products; (3) breast pump
2354	2354	23 cleaning supplies; (4) nursing bras, bra pads, breast
2355	2355	24 shells, and other similar products; and (5) creams,
2356	2356	25 ointments, and other similar products that relieve
2357	2357	26 breastfeeding-related symptoms or conditions of the
2358	2358
2359	2359
2360	2360
2361	2361
2362	2362
2363	2363	SB2857 - 65 - LRB103 36897 HLH 67010 b
2364	2364
2365	2365
2366	2366	SB2857- 66 -LRB103 36897 HLH 67010 b SB2857 - 66 - LRB103 36897 HLH 67010 b
2367	2367	SB2857 - 66 - LRB103 36897 HLH 67010 b
2368	2368	1 breasts or nipples, unless sold as part of a breast pump
2369	2369	2 kit that is pre-packaged by the breast pump manufacturer
2370	2370	3 or distributor.
2371	2371	4 "Breast pump kit" means a kit that: (1) contains no
2372	2372	5 more than a breast pump, breast pump collection and
2373	2373	6 storage supplies, a rechargeable battery for operating the
2374	2374	7 breast pump, a breastmilk cooler, bottle stands, ice
2375	2375	8 packs, and a breast pump carrying case; and (2) is
2376	2376	9 pre-packaged as a breast pump kit by the breast pump
2377	2377	10 manufacturer or distributor.
2378	2378	11 (34) Tangible personal property sold by or on behalf of
2379	2379	12 the State Treasurer pursuant to the Revised Uniform Unclaimed
2380	2380	13 Property Act. This item (34) is exempt from the provisions of
2381	2381	14 Section 3-55.
2382	2382	15 (35) Beginning on January 1, 2024, tangible personal
2383	2383	16 property purchased by an active duty member of the armed
2384	2384	17 forces of the United States who presents valid military
2385	2385	18 identification and purchases the property using a form of
2386	2386	19 payment where the federal government is the payor. The member
2387	2387	20 of the armed forces must complete, at the point of sale, a form
2388	2388	21 prescribed by the Department of Revenue documenting that the
2389	2389	22 transaction is eligible for the exemption under this
2390	2390	23 paragraph. Retailers must keep the form as documentation of
2391	2391	24 the exemption in their records for a period of not less than 6
2392	2392	25 years. "Armed forces of the United States" means the United
2393	2393	26 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
2394	2394
2395	2395
2396	2396
2397	2397
2398	2398
2399	2399	SB2857 - 66 - LRB103 36897 HLH 67010 b
2400	2400
2401	2401
2402	2402	SB2857- 67 -LRB103 36897 HLH 67010 b SB2857 - 67 - LRB103 36897 HLH 67010 b
2403	2403	SB2857 - 67 - LRB103 36897 HLH 67010 b
2404	2404	1 This paragraph is exempt from the provisions of Section 3-55.
2405	2405	2 (36) Qualified tangible personal property that is (i) used
2406	2406	3 in the construction or development of a megaproject for which
2407	2407	4 a certificate has been issued prior to December 31, 2030 by the
2408	2408	5 Department of Commerce and Economic Opportunity under Division
2409	2409	6 22 of Article 10 of the Property Tax Code and (ii) purchased
2410	2410	7 prior to the Department's issuance of the megaproject
2411	2411	8 certificate or during the investment period, whether that
2412	2412	9 tangible personal property is purchased by the owner,
2413	2413	10 operator, or tenant of the megaproject or by a contractor or
2414	2414	11 subcontractor of the owner, operator, or tenant.
2415	2415	12 As used in this item (36):
2416	2416	13 "Facility" means a building or series of buildings.
2417	2417	14 "Investment period" means the period ending 7 years after
2418	2418	15 the date on which the Department of Commerce and Economic
2419	2419	16 Opportunity issues the megaproject certificate, or such other
2420	2420	17 longer period of time as the local municipality, local taxing
2421	2421	18 districts, and the company may agree to, not to exceed an
2422	2422	19 initial period of 10 years.
2423	2423	20 "Megaproject" means a facility that is rehabilitated or
2424	2424	21 constructed as described in Division 22 of Article 10 of the
2425	2425	22 Property Tax Code.
2426	2426	23 "Qualified tangible personal property" means all tangible
2427	2427	24 personal property that is essential to the construction or
2428	2428	25 development of a megaproject, including, but not limited to:
2429	2429	26 electrical systems and equipment; climate control and chilling
2430	2430
2431	2431
2432	2432
2433	2433
2434	2434
2435	2435	SB2857 - 67 - LRB103 36897 HLH 67010 b
2436	2436
2437	2437
2438	2438	SB2857- 68 -LRB103 36897 HLH 67010 b SB2857 - 68 - LRB103 36897 HLH 67010 b
2439	2439	SB2857 - 68 - LRB103 36897 HLH 67010 b
2440	2440	1 equipment and systems; mechanical systems and equipment;
2441	2441	2 monitoring and secure systems; emergency generators; hardware;
2442	2442	3 computers; servers; data storage devices; network connectivity
2443	2443	4 equipment; racks; cabinets; telecommunications cabling
2444	2444	5 infrastructure; raised floor systems; peripheral components or
2445	2445	6 systems; software; mechanical, electrical, or plumbing
2446	2446	7 systems; battery systems; cooling systems and towers;
2447	2447	8 temperature control systems; other cabling; and other
2448	2448	9 infrastructure, equipment, and systems necessary to operate
2449	2449	10 qualified tangible personal property, including fixtures; and
2450	2450	11 component parts of those items, including installation,
2451	2451	12 maintenance, repair, refurbishment, and replacement of
2452	2452	13 qualified tangible personal property to generate, transform,
2453	2453	14 transmit, distribute, or manage electricity necessary to
2454	2454	15 operate qualified tangible personal property. The term
2455	2455	16 "qualified tangible personal property" also includes building
2456	2456	17 materials to be incorporated into the megaproject. To document
2457	2457	18 the exemption allowed under this Section, the retailer,
2458	2458	19 contractor, subcontractor, or supplier must obtain from the
2459	2459	20 purchaser a copy of the certificate issued by the Department
2460	2460	21 of Commerce and Economic Opportunity for the megaproject as
2461	2461	22 described and defined in Division 22 of Article 10 of the
2462	2462	23 Property Tax Code.
2463	2463	24 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
2464	2464	25 Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2465	2465	26 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
2466	2466
2467	2467
2468	2468
2469	2469
2470	2470
2471	2471	SB2857 - 68 - LRB103 36897 HLH 67010 b
2472	2472
2473	2473
2474	2474	SB2857- 69 -LRB103 36897 HLH 67010 b SB2857 - 69 - LRB103 36897 HLH 67010 b
2475	2475	SB2857 - 69 - LRB103 36897 HLH 67010 b
2476	2476	1 Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
2477	2477	2 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
2478	2478	3 revised 12-12-23.)
2479	2479	4 Section 20. The Retailers' Occupation Tax Act is amended
2480	2480	5 by changing Section 2-5 as follows:
2481	2481	6 (35 ILCS 120/2-5)
2482	2482	7 Sec. 2-5. Exemptions. Gross receipts from proceeds from
2483	2483	8 the sale of the following tangible personal property are
2484	2484	9 exempt from the tax imposed by this Act:
2485	2485	10 (1) Farm chemicals.
2486	2486	11 (2) Farm machinery and equipment, both new and used,
2487	2487	12 including that manufactured on special order, certified by
2488	2488	13 the purchaser to be used primarily for production
2489	2489	14 agriculture or State or federal agricultural programs,
2490	2490	15 including individual replacement parts for the machinery
2491	2491	16 and equipment, including machinery and equipment purchased
2492	2492	17 for lease, and including implements of husbandry defined
2493	2493	18 in Section 1-130 of the Illinois Vehicle Code, farm
2494	2494	19 machinery and agricultural chemical and fertilizer
2495	2495	20 spreaders, and nurse wagons required to be registered
2496	2496	21 under Section 3-809 of the Illinois Vehicle Code, but
2497	2497	22 excluding other motor vehicles required to be registered
2498	2498	23 under the Illinois Vehicle Code. Horticultural polyhouses
2499	2499	24 or hoop houses used for propagating, growing, or
2500	2500
2501	2501
2502	2502
2503	2503
2504	2504
2505	2505	SB2857 - 69 - LRB103 36897 HLH 67010 b
2506	2506
2507	2507
2508	2508	SB2857- 70 -LRB103 36897 HLH 67010 b SB2857 - 70 - LRB103 36897 HLH 67010 b
2509	2509	SB2857 - 70 - LRB103 36897 HLH 67010 b
2510	2510	1 overwintering plants shall be considered farm machinery
2511	2511	2 and equipment under this item (2). Agricultural chemical
2512	2512	3 tender tanks and dry boxes shall include units sold
2513	2513	4 separately from a motor vehicle required to be licensed
2514	2514	5 and units sold mounted on a motor vehicle required to be
2515	2515	6 licensed, if the selling price of the tender is separately
2516	2516	7 stated.
2517	2517	8 Farm machinery and equipment shall include precision
2518	2518	9 farming equipment that is installed or purchased to be
2519	2519	10 installed on farm machinery and equipment including, but
2520	2520	11 not limited to, tractors, harvesters, sprayers, planters,
2521	2521	12 seeders, or spreaders. Precision farming equipment
2522	2522	13 includes, but is not limited to, soil testing sensors,
2523	2523	14 computers, monitors, software, global positioning and
2524	2524	15 mapping systems, and other such equipment.
2525	2525	16 Farm machinery and equipment also includes computers,
2526	2526	17 sensors, software, and related equipment used primarily in
2527	2527	18 the computer-assisted operation of production agriculture
2528	2528	19 facilities, equipment, and activities such as, but not
2529	2529	20 limited to, the collection, monitoring, and correlation of
2530	2530	21 animal and crop data for the purpose of formulating animal
2531	2531	22 diets and agricultural chemicals.
2532	2532	23 Beginning on January 1, 2024, farm machinery and
2533	2533	24 equipment also includes electrical power generation
2534	2534	25 equipment used primarily for production agriculture.
2535	2535	26 This item (2) is exempt from the provisions of Section
2536	2536
2537	2537
2538	2538
2539	2539
2540	2540
2541	2541	SB2857 - 70 - LRB103 36897 HLH 67010 b
2542	2542
2543	2543
2544	2544	SB2857- 71 -LRB103 36897 HLH 67010 b SB2857 - 71 - LRB103 36897 HLH 67010 b
2545	2545	SB2857 - 71 - LRB103 36897 HLH 67010 b
2546	2546	1 2-70.
2547	2547	2 (3) Until July 1, 2003, distillation machinery and
2548	2548	3 equipment, sold as a unit or kit, assembled or installed
2549	2549	4 by the retailer, certified by the user to be used only for
2550	2550	5 the production of ethyl alcohol that will be used for
2551	2551	6 consumption as motor fuel or as a component of motor fuel
2552	2552	7 for the personal use of the user, and not subject to sale
2553	2553	8 or resale.
2554	2554	9 (4) Until July 1, 2003 and beginning again September
2555	2555	10 1, 2004 through August 30, 2014, graphic arts machinery
2556	2556	11 and equipment, including repair and replacement parts,
2557	2557	12 both new and used, and including that manufactured on
2558	2558	13 special order or purchased for lease, certified by the
2559	2559	14 purchaser to be used primarily for graphic arts
2560	2560	15 production. Equipment includes chemicals or chemicals
2561	2561	16 acting as catalysts but only if the chemicals or chemicals
2562	2562	17 acting as catalysts effect a direct and immediate change
2563	2563	18 upon a graphic arts product. Beginning on July 1, 2017,
2564	2564	19 graphic arts machinery and equipment is included in the
2565	2565	20 manufacturing and assembling machinery and equipment
2566	2566	21 exemption under paragraph (14).
2567	2567	22 (5) A motor vehicle that is used for automobile
2568	2568	23 renting, as defined in the Automobile Renting Occupation
2569	2569	24 and Use Tax Act. This paragraph is exempt from the
2570	2570	25 provisions of Section 2-70.
2571	2571	26 (6) Personal property sold by a teacher-sponsored
2572	2572
2573	2573
2574	2574
2575	2575
2576	2576
2577	2577	SB2857 - 71 - LRB103 36897 HLH 67010 b
2578	2578
2579	2579
2580	2580	SB2857- 72 -LRB103 36897 HLH 67010 b SB2857 - 72 - LRB103 36897 HLH 67010 b
2581	2581	SB2857 - 72 - LRB103 36897 HLH 67010 b
2582	2582	1 student organization affiliated with an elementary or
2583	2583	2 secondary school located in Illinois.
2584	2584	3 (7) Until July 1, 2003, proceeds of that portion of
2585	2585	4 the selling price of a passenger car the sale of which is
2586	2586	5 subject to the Replacement Vehicle Tax.
2587	2587	6 (8) Personal property sold to an Illinois county fair
2588	2588	7 association for use in conducting, operating, or promoting
2589	2589	8 the county fair.
2590	2590	9 (9) Personal property sold to a not-for-profit arts or
2591	2591	10 cultural organization that establishes, by proof required
2592	2592	11 by the Department by rule, that it has received an
2593	2593	12 exemption under Section 501(c)(3) of the Internal Revenue
2594	2594	13 Code and that is organized and operated primarily for the
2595	2595	14 presentation or support of arts or cultural programming,
2596	2596	15 activities, or services. These organizations include, but
2597	2597	16 are not limited to, music and dramatic arts organizations
2598	2598	17 such as symphony orchestras and theatrical groups, arts
2599	2599	18 and cultural service organizations, local arts councils,
2600	2600	19 visual arts organizations, and media arts organizations.
2601	2601	20 On and after July 1, 2001 (the effective date of Public Act
2602	2602	21 92-35), however, an entity otherwise eligible for this
2603	2603	22 exemption shall not make tax-free purchases unless it has
2604	2604	23 an active identification number issued by the Department.
2605	2605	24 (10) Personal property sold by a corporation, society,
2606	2606	25 association, foundation, institution, or organization,
2607	2607	26 other than a limited liability company, that is organized
2608	2608
2609	2609
2610	2610
2611	2611
2612	2612
2613	2613	SB2857 - 72 - LRB103 36897 HLH 67010 b
2614	2614
2615	2615
2616	2616	SB2857- 73 -LRB103 36897 HLH 67010 b SB2857 - 73 - LRB103 36897 HLH 67010 b
2617	2617	SB2857 - 73 - LRB103 36897 HLH 67010 b
2618	2618	1 and operated as a not-for-profit service enterprise for
2619	2619	2 the benefit of persons 65 years of age or older if the
2620	2620	3 personal property was not purchased by the enterprise for
2621	2621	4 the purpose of resale by the enterprise.
2622	2622	5 (11) Except as otherwise provided in this Section,
2623	2623	6 personal property sold to a governmental body, to a
2624	2624	7 corporation, society, association, foundation, or
2625	2625	8 institution organized and operated exclusively for
2626	2626	9 charitable, religious, or educational purposes, or to a
2627	2627	10 not-for-profit corporation, society, association,
2628	2628	11 foundation, institution, or organization that has no
2629	2629	12 compensated officers or employees and that is organized
2630	2630	13 and operated primarily for the recreation of persons 55
2631	2631	14 years of age or older. A limited liability company may
2632	2632	15 qualify for the exemption under this paragraph only if the
2633	2633	16 limited liability company is organized and operated
2634	2634	17 exclusively for educational purposes. On and after July 1,
2635	2635	18 1987, however, no entity otherwise eligible for this
2636	2636	19 exemption shall make tax-free purchases unless it has an
2637	2637	20 active identification number issued by the Department.
2638	2638	21 (12) (Blank).
2639	2639	22 (12-5) On and after July 1, 2003 and through June 30,
2640	2640	23 2004, motor vehicles of the second division with a gross
2641	2641	24 vehicle weight in excess of 8,000 pounds that are subject
2642	2642	25 to the commercial distribution fee imposed under Section
2643	2643	26 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
2644	2644
2645	2645
2646	2646
2647	2647
2648	2648
2649	2649	SB2857 - 73 - LRB103 36897 HLH 67010 b
2650	2650
2651	2651
2652	2652	SB2857- 74 -LRB103 36897 HLH 67010 b SB2857 - 74 - LRB103 36897 HLH 67010 b
2653	2653	SB2857 - 74 - LRB103 36897 HLH 67010 b
2654	2654	1 2004 and through June 30, 2005, the use in this State of
2655	2655	2 motor vehicles of the second division: (i) with a gross
2656	2656	3 vehicle weight rating in excess of 8,000 pounds; (ii) that
2657	2657	4 are subject to the commercial distribution fee imposed
2658	2658	5 under Section 3-815.1 of the Illinois Vehicle Code; and
2659	2659	6 (iii) that are primarily used for commercial purposes.
2660	2660	7 Through June 30, 2005, this exemption applies to repair
2661	2661	8 and replacement parts added after the initial purchase of
2662	2662	9 such a motor vehicle if that motor vehicle is used in a
2663	2663	10 manner that would qualify for the rolling stock exemption
2664	2664	11 otherwise provided for in this Act. For purposes of this
2665	2665	12 paragraph, "used for commercial purposes" means the
2666	2666	13 transportation of persons or property in furtherance of
2667	2667	14 any commercial or industrial enterprise whether for-hire
2668	2668	15 or not.
2669	2669	16 (13) Proceeds from sales to owners, lessors, or
2670	2670	17 shippers of tangible personal property that is utilized by
2671	2671	18 interstate carriers for hire for use as rolling stock
2672	2672	19 moving in interstate commerce and equipment operated by a
2673	2673	20 telecommunications provider, licensed as a common carrier
2674	2674	21 by the Federal Communications Commission, which is
2675	2675	22 permanently installed in or affixed to aircraft moving in
2676	2676	23 interstate commerce.
2677	2677	24 (14) Machinery and equipment that will be used by the
2678	2678	25 purchaser, or a lessee of the purchaser, primarily in the
2679	2679	26 process of manufacturing or assembling tangible personal
2680	2680
2681	2681
2682	2682
2683	2683
2684	2684
2685	2685	SB2857 - 74 - LRB103 36897 HLH 67010 b
2686	2686
2687	2687
2688	2688	SB2857- 75 -LRB103 36897 HLH 67010 b SB2857 - 75 - LRB103 36897 HLH 67010 b
2689	2689	SB2857 - 75 - LRB103 36897 HLH 67010 b
2690	2690	1 property for wholesale or retail sale or lease, whether
2691	2691	2 the sale or lease is made directly by the manufacturer or
2692	2692	3 by some other person, whether the materials used in the
2693	2693	4 process are owned by the manufacturer or some other
2694	2694	5 person, or whether the sale or lease is made apart from or
2695	2695	6 as an incident to the seller's engaging in the service
2696	2696	7 occupation of producing machines, tools, dies, jigs,
2697	2697	8 patterns, gauges, or other similar items of no commercial
2698	2698	9 value on special order for a particular purchaser. The
2699	2699	10 exemption provided by this paragraph (14) does not include
2700	2700	11 machinery and equipment used in (i) the generation of
2701	2701	12 electricity for wholesale or retail sale; (ii) the
2702	2702	13 generation or treatment of natural or artificial gas for
2703	2703	14 wholesale or retail sale that is delivered to customers
2704	2704	15 through pipes, pipelines, or mains; or (iii) the treatment
2705	2705	16 of water for wholesale or retail sale that is delivered to
2706	2706	17 customers through pipes, pipelines, or mains. The
2707	2707	18 provisions of Public Act 98-583 are declaratory of
2708	2708	19 existing law as to the meaning and scope of this
2709	2709	20 exemption. Beginning on July 1, 2017, the exemption
2710	2710	21 provided by this paragraph (14) includes, but is not
2711	2711	22 limited to, graphic arts machinery and equipment, as
2712	2712	23 defined in paragraph (4) of this Section.
2713	2713	24 (15) Proceeds of mandatory service charges separately
2714	2714	25 stated on customers' bills for purchase and consumption of
2715	2715	26 food and beverages, to the extent that the proceeds of the
2716	2716
2717	2717
2718	2718
2719	2719
2720	2720
2721	2721	SB2857 - 75 - LRB103 36897 HLH 67010 b
2722	2722
2723	2723
2724	2724	SB2857- 76 -LRB103 36897 HLH 67010 b SB2857 - 76 - LRB103 36897 HLH 67010 b
2725	2725	SB2857 - 76 - LRB103 36897 HLH 67010 b
2726	2726	1 service charge are in fact turned over as tips or as a
2727	2727	2 substitute for tips to the employees who participate
2728	2728	3 directly in preparing, serving, hosting or cleaning up the
2729	2729	4 food or beverage function with respect to which the
2730	2730	5 service charge is imposed.
2731	2731	6 (16) Tangible personal property sold to a purchaser if
2732	2732	7 the purchaser is exempt from use tax by operation of
2733	2733	8 federal law. This paragraph is exempt from the provisions
2734	2734	9 of Section 2-70.
2735	2735	10 (17) Tangible personal property sold to a common
2736	2736	11 carrier by rail or motor that receives the physical
2737	2737	12 possession of the property in Illinois and that transports
2738	2738	13 the property, or shares with another common carrier in the
2739	2739	14 transportation of the property, out of Illinois on a
2740	2740	15 standard uniform bill of lading showing the seller of the
2741	2741	16 property as the shipper or consignor of the property to a
2742	2742	17 destination outside Illinois, for use outside Illinois.
2743	2743	18 (18) Legal tender, currency, medallions, or gold or
2744	2744	19 silver coinage issued by the State of Illinois, the
2745	2745	20 government of the United States of America, or the
2746	2746	21 government of any foreign country, and bullion.
2747	2747	22 (19) Until July 1, 2003, oil field exploration,
2748	2748	23 drilling, and production equipment, including (i) rigs and
2749	2749	24 parts of rigs, rotary rigs, cable tool rigs, and workover
2750	2750	25 rigs, (ii) pipe and tubular goods, including casing and
2751	2751	26 drill strings, (iii) pumps and pump-jack units, (iv)
2752	2752
2753	2753
2754	2754
2755	2755
2756	2756
2757	2757	SB2857 - 76 - LRB103 36897 HLH 67010 b
2758	2758
2759	2759
2760	2760	SB2857- 77 -LRB103 36897 HLH 67010 b SB2857 - 77 - LRB103 36897 HLH 67010 b
2761	2761	SB2857 - 77 - LRB103 36897 HLH 67010 b
2762	2762	1 storage tanks and flow lines, (v) any individual
2763	2763	2 replacement part for oil field exploration, drilling, and
2764	2764	3 production equipment, and (vi) machinery and equipment
2765	2765	4 purchased for lease; but excluding motor vehicles required
2766	2766	5 to be registered under the Illinois Vehicle Code.
2767	2767	6 (20) Photoprocessing machinery and equipment,
2768	2768	7 including repair and replacement parts, both new and used,
2769	2769	8 including that manufactured on special order, certified by
2770	2770	9 the purchaser to be used primarily for photoprocessing,
2771	2771	10 and including photoprocessing machinery and equipment
2772	2772	11 purchased for lease.
2773	2773	12 (21) Until July 1, 2028, coal and aggregate
2774	2774	13 exploration, mining, off-highway hauling, processing,
2775	2775	14 maintenance, and reclamation equipment, including
2776	2776	15 replacement parts and equipment, and including equipment
2777	2777	16 purchased for lease, but excluding motor vehicles required
2778	2778	17 to be registered under the Illinois Vehicle Code. The
2779	2779	18 changes made to this Section by Public Act 97-767 apply on
2780	2780	19 and after July 1, 2003, but no claim for credit or refund
2781	2781	20 is allowed on or after August 16, 2013 (the effective date
2782	2782	21 of Public Act 98-456) for such taxes paid during the
2783	2783	22 period beginning July 1, 2003 and ending on August 16,
2784	2784	23 2013 (the effective date of Public Act 98-456).
2785	2785	24 (22) Until June 30, 2013, fuel and petroleum products
2786	2786	25 sold to or used by an air carrier, certified by the carrier
2787	2787	26 to be used for consumption, shipment, or storage in the
2788	2788
2789	2789
2790	2790
2791	2791
2792	2792
2793	2793	SB2857 - 77 - LRB103 36897 HLH 67010 b
2794	2794
2795	2795
2796	2796	SB2857- 78 -LRB103 36897 HLH 67010 b SB2857 - 78 - LRB103 36897 HLH 67010 b
2797	2797	SB2857 - 78 - LRB103 36897 HLH 67010 b
2798	2798	1 conduct of its business as an air common carrier, for a
2799	2799	2 flight destined for or returning from a location or
2800	2800	3 locations outside the United States without regard to
2801	2801	4 previous or subsequent domestic stopovers.
2802	2802	5 Beginning July 1, 2013, fuel and petroleum products
2803	2803	6 sold to or used by an air carrier, certified by the carrier
2804	2804	7 to be used for consumption, shipment, or storage in the
2805	2805	8 conduct of its business as an air common carrier, for a
2806	2806	9 flight that (i) is engaged in foreign trade or is engaged
2807	2807	10 in trade between the United States and any of its
2808	2808	11 possessions and (ii) transports at least one individual or
2809	2809	12 package for hire from the city of origination to the city
2810	2810	13 of final destination on the same aircraft, without regard
2811	2811	14 to a change in the flight number of that aircraft.
2812	2812	15 (23) A transaction in which the purchase order is
2813	2813	16 received by a florist who is located outside Illinois, but
2814	2814	17 who has a florist located in Illinois deliver the property
2815	2815	18 to the purchaser or the purchaser's donee in Illinois.
2816	2816	19 (24) Fuel consumed or used in the operation of ships,
2817	2817	20 barges, or vessels that are used primarily in or for the
2818	2818	21 transportation of property or the conveyance of persons
2819	2819	22 for hire on rivers bordering on this State if the fuel is
2820	2820	23 delivered by the seller to the purchaser's barge, ship, or
2821	2821	24 vessel while it is afloat upon that bordering river.
2822	2822	25 (25) Except as provided in item (25-5) of this
2823	2823	26 Section, a motor vehicle sold in this State to a
2824	2824
2825	2825
2826	2826
2827	2827
2828	2828
2829	2829	SB2857 - 78 - LRB103 36897 HLH 67010 b
2830	2830
2831	2831
2832	2832	SB2857- 79 -LRB103 36897 HLH 67010 b SB2857 - 79 - LRB103 36897 HLH 67010 b
2833	2833	SB2857 - 79 - LRB103 36897 HLH 67010 b
2834	2834	1 nonresident even though the motor vehicle is delivered to
2835	2835	2 the nonresident in this State, if the motor vehicle is not
2836	2836	3 to be titled in this State, and if a drive-away permit is
2837	2837	4 issued to the motor vehicle as provided in Section 3-603
2838	2838	5 of the Illinois Vehicle Code or if the nonresident
2839	2839	6 purchaser has vehicle registration plates to transfer to
2840	2840	7 the motor vehicle upon returning to his or her home state.
2841	2841	8 The issuance of the drive-away permit or having the
2842	2842	9 out-of-state registration plates to be transferred is
2843	2843	10 prima facie evidence that the motor vehicle will not be
2844	2844	11 titled in this State.
2845	2845	12 (25-5) The exemption under item (25) does not apply if
2846	2846	13 the state in which the motor vehicle will be titled does
2847	2847	14 not allow a reciprocal exemption for a motor vehicle sold
2848	2848	15 and delivered in that state to an Illinois resident but
2849	2849	16 titled in Illinois. The tax collected under this Act on
2850	2850	17 the sale of a motor vehicle in this State to a resident of
2851	2851	18 another state that does not allow a reciprocal exemption
2852	2852	19 shall be imposed at a rate equal to the state's rate of tax
2853	2853	20 on taxable property in the state in which the purchaser is
2854	2854	21 a resident, except that the tax shall not exceed the tax
2855	2855	22 that would otherwise be imposed under this Act. At the
2856	2856	23 time of the sale, the purchaser shall execute a statement,
2857	2857	24 signed under penalty of perjury, of his or her intent to
2858	2858	25 title the vehicle in the state in which the purchaser is a
2859	2859	26 resident within 30 days after the sale and of the fact of
2860	2860
2861	2861
2862	2862
2863	2863
2864	2864
2865	2865	SB2857 - 79 - LRB103 36897 HLH 67010 b
2866	2866
2867	2867
2868	2868	SB2857- 80 -LRB103 36897 HLH 67010 b SB2857 - 80 - LRB103 36897 HLH 67010 b
2869	2869	SB2857 - 80 - LRB103 36897 HLH 67010 b
2870	2870	1 the payment to the State of Illinois of tax in an amount
2871	2871	2 equivalent to the state's rate of tax on taxable property
2872	2872	3 in his or her state of residence and shall submit the
2873	2873	4 statement to the appropriate tax collection agency in his
2874	2874	5 or her state of residence. In addition, the retailer must
2875	2875	6 retain a signed copy of the statement in his or her
2876	2876	7 records. Nothing in this item shall be construed to
2877	2877	8 require the removal of the vehicle from this state
2878	2878	9 following the filing of an intent to title the vehicle in
2879	2879	10 the purchaser's state of residence if the purchaser titles
2880	2880	11 the vehicle in his or her state of residence within 30 days
2881	2881	12 after the date of sale. The tax collected under this Act in
2882	2882	13 accordance with this item (25-5) shall be proportionately
2883	2883	14 distributed as if the tax were collected at the 6.25%
2884	2884	15 general rate imposed under this Act.
2885	2885	16 (25-7) Beginning on July 1, 2007, no tax is imposed
2886	2886	17 under this Act on the sale of an aircraft, as defined in
2887	2887	18 Section 3 of the Illinois Aeronautics Act, if all of the
2888	2888	19 following conditions are met:
2889	2889	20 (1) the aircraft leaves this State within 15 days
2890	2890	21 after the later of either the issuance of the final
2891	2891	22 billing for the sale of the aircraft, or the
2892	2892	23 authorized approval for return to service, completion
2893	2893	24 of the maintenance record entry, and completion of the
2894	2894	25 test flight and ground test for inspection, as
2895	2895	26 required by 14 CFR 91.407;
2896	2896
2897	2897
2898	2898
2899	2899
2900	2900
2901	2901	SB2857 - 80 - LRB103 36897 HLH 67010 b
2902	2902
2903	2903
2904	2904	SB2857- 81 -LRB103 36897 HLH 67010 b SB2857 - 81 - LRB103 36897 HLH 67010 b
2905	2905	SB2857 - 81 - LRB103 36897 HLH 67010 b
2906	2906	1 (2) the aircraft is not based or registered in
2907	2907	2 this State after the sale of the aircraft; and
2908	2908	3 (3) the seller retains in his or her books and
2909	2909	4 records and provides to the Department a signed and
2910	2910	5 dated certification from the purchaser, on a form
2911	2911	6 prescribed by the Department, certifying that the
2912	2912	7 requirements of this item (25-7) are met. The
2913	2913	8 certificate must also include the name and address of
2914	2914	9 the purchaser, the address of the location where the
2915	2915	10 aircraft is to be titled or registered, the address of
2916	2916	11 the primary physical location of the aircraft, and
2917	2917	12 other information that the Department may reasonably
2918	2918	13 require.
2919	2919	14 For purposes of this item (25-7):
2920	2920	15 "Based in this State" means hangared, stored, or
2921	2921	16 otherwise used, excluding post-sale customizations as
2922	2922	17 defined in this Section, for 10 or more days in each
2923	2923	18 12-month period immediately following the date of the sale
2924	2924	19 of the aircraft.
2925	2925	20 "Registered in this State" means an aircraft
2926	2926	21 registered with the Department of Transportation,
2927	2927	22 Aeronautics Division, or titled or registered with the
2928	2928	23 Federal Aviation Administration to an address located in
2929	2929	24 this State.
2930	2930	25 This paragraph (25-7) is exempt from the provisions of
2931	2931	26 Section 2-70.
2932	2932
2933	2933
2934	2934
2935	2935
2936	2936
2937	2937	SB2857 - 81 - LRB103 36897 HLH 67010 b
2938	2938
2939	2939
2940	2940	SB2857- 82 -LRB103 36897 HLH 67010 b SB2857 - 82 - LRB103 36897 HLH 67010 b
2941	2941	SB2857 - 82 - LRB103 36897 HLH 67010 b
2942	2942	1 (26) Semen used for artificial insemination of
2943	2943	2 livestock for direct agricultural production.
2944	2944	3 (27) Horses, or interests in horses, registered with
2945	2945	4 and meeting the requirements of any of the Arabian Horse
2946	2946	5 Club Registry of America, Appaloosa Horse Club, American
2947	2947	6 Quarter Horse Association, United States Trotting
2948	2948	7 Association, or Jockey Club, as appropriate, used for
2949	2949	8 purposes of breeding or racing for prizes. This item (27)
2950	2950	9 is exempt from the provisions of Section 2-70, and the
2951	2951	10 exemption provided for under this item (27) applies for
2952	2952	11 all periods beginning May 30, 1995, but no claim for
2953	2953	12 credit or refund is allowed on or after January 1, 2008
2954	2954	13 (the effective date of Public Act 95-88) for such taxes
2955	2955	14 paid during the period beginning May 30, 2000 and ending
2956	2956	15 on January 1, 2008 (the effective date of Public Act
2957	2957	16 95-88).
2958	2958	17 (28) Computers and communications equipment utilized
2959	2959	18 for any hospital purpose and equipment used in the
2960	2960	19 diagnosis, analysis, or treatment of hospital patients
2961	2961	20 sold to a lessor who leases the equipment, under a lease of
2962	2962	21 one year or longer executed or in effect at the time of the
2963	2963	22 purchase, to a hospital that has been issued an active tax
2964	2964	23 exemption identification number by the Department under
2965	2965	24 Section 1g of this Act.
2966	2966	25 (29) Personal property sold to a lessor who leases the
2967	2967	26 property, under a lease of one year or longer executed or
2968	2968
2969	2969
2970	2970
2971	2971
2972	2972
2973	2973	SB2857 - 82 - LRB103 36897 HLH 67010 b
2974	2974
2975	2975
2976	2976	SB2857- 83 -LRB103 36897 HLH 67010 b SB2857 - 83 - LRB103 36897 HLH 67010 b
2977	2977	SB2857 - 83 - LRB103 36897 HLH 67010 b
2978	2978	1 in effect at the time of the purchase, to a governmental
2979	2979	2 body that has been issued an active tax exemption
2980	2980	3 identification number by the Department under Section 1g
2981	2981	4 of this Act.
2982	2982	5 (30) Beginning with taxable years ending on or after
2983	2983	6 December 31, 1995 and ending with taxable years ending on
2984	2984	7 or before December 31, 2004, personal property that is
2985	2985	8 donated for disaster relief to be used in a State or
2986	2986	9 federally declared disaster area in Illinois or bordering
2987	2987	10 Illinois by a manufacturer or retailer that is registered
2988	2988	11 in this State to a corporation, society, association,
2989	2989	12 foundation, or institution that has been issued a sales
2990	2990	13 tax exemption identification number by the Department that
2991	2991	14 assists victims of the disaster who reside within the
2992	2992	15 declared disaster area.
2993	2993	16 (31) Beginning with taxable years ending on or after
2994	2994	17 December 31, 1995 and ending with taxable years ending on
2995	2995	18 or before December 31, 2004, personal property that is
2996	2996	19 used in the performance of infrastructure repairs in this
2997	2997	20 State, including, but not limited to, municipal roads and
2998	2998	21 streets, access roads, bridges, sidewalks, waste disposal
2999	2999	22 systems, water and sewer line extensions, water
3000	3000	23 distribution and purification facilities, storm water
3001	3001	24 drainage and retention facilities, and sewage treatment
3002	3002	25 facilities, resulting from a State or federally declared
3003	3003	26 disaster in Illinois or bordering Illinois when such
3004	3004
3005	3005
3006	3006
3007	3007
3008	3008
3009	3009	SB2857 - 83 - LRB103 36897 HLH 67010 b
3010	3010
3011	3011
3012	3012	SB2857- 84 -LRB103 36897 HLH 67010 b SB2857 - 84 - LRB103 36897 HLH 67010 b
3013	3013	SB2857 - 84 - LRB103 36897 HLH 67010 b
3014	3014	1 repairs are initiated on facilities located in the
3015	3015	2 declared disaster area within 6 months after the disaster.
3016	3016	3 (32) Beginning July 1, 1999, game or game birds sold
3017	3017	4 at a "game breeding and hunting preserve area" as that
3018	3018	5 term is used in the Wildlife Code. This paragraph is
3019	3019	6 exempt from the provisions of Section 2-70.
3020	3020	7 (33) A motor vehicle, as that term is defined in
3021	3021	8 Section 1-146 of the Illinois Vehicle Code, that is
3022	3022	9 donated to a corporation, limited liability company,
3023	3023	10 society, association, foundation, or institution that is
3024	3024	11 determined by the Department to be organized and operated
3025	3025	12 exclusively for educational purposes. For purposes of this
3026	3026	13 exemption, "a corporation, limited liability company,
3027	3027	14 society, association, foundation, or institution organized
3028	3028	15 and operated exclusively for educational purposes" means
3029	3029	16 all tax-supported public schools, private schools that
3030	3030	17 offer systematic instruction in useful branches of
3031	3031	18 learning by methods common to public schools and that
3032	3032	19 compare favorably in their scope and intensity with the
3033	3033	20 course of study presented in tax-supported schools, and
3034	3034	21 vocational or technical schools or institutes organized
3035	3035	22 and operated exclusively to provide a course of study of
3036	3036	23 not less than 6 weeks duration and designed to prepare
3037	3037	24 individuals to follow a trade or to pursue a manual,
3038	3038	25 technical, mechanical, industrial, business, or commercial
3039	3039	26 occupation.
3040	3040
3041	3041
3042	3042
3043	3043
3044	3044
3045	3045	SB2857 - 84 - LRB103 36897 HLH 67010 b
3046	3046
3047	3047
3048	3048	SB2857- 85 -LRB103 36897 HLH 67010 b SB2857 - 85 - LRB103 36897 HLH 67010 b
3049	3049	SB2857 - 85 - LRB103 36897 HLH 67010 b
3050	3050	1 (34) Beginning January 1, 2000, personal property,
3051	3051	2 including food, purchased through fundraising events for
3052	3052	3 the benefit of a public or private elementary or secondary
3053	3053	4 school, a group of those schools, or one or more school
3054	3054	5 districts if the events are sponsored by an entity
3055	3055	6 recognized by the school district that consists primarily
3056	3056	7 of volunteers and includes parents and teachers of the
3057	3057	8 school children. This paragraph does not apply to
3058	3058	9 fundraising events (i) for the benefit of private home
3059	3059	10 instruction or (ii) for which the fundraising entity
3060	3060	11 purchases the personal property sold at the events from
3061	3061	12 another individual or entity that sold the property for
3062	3062	13 the purpose of resale by the fundraising entity and that
3063	3063	14 profits from the sale to the fundraising entity. This
3064	3064	15 paragraph is exempt from the provisions of Section 2-70.
3065	3065	16 (35) Beginning January 1, 2000 and through December
3066	3066	17 31, 2001, new or used automatic vending machines that
3067	3067	18 prepare and serve hot food and beverages, including
3068	3068	19 coffee, soup, and other items, and replacement parts for
3069	3069	20 these machines. Beginning January 1, 2002 and through June
3070	3070	21 30, 2003, machines and parts for machines used in
3071	3071	22 commercial, coin-operated amusement and vending business
3072	3072	23 if a use or occupation tax is paid on the gross receipts
3073	3073	24 derived from the use of the commercial, coin-operated
3074	3074	25 amusement and vending machines. This paragraph is exempt
3075	3075	26 from the provisions of Section 2-70.
3076	3076
3077	3077
3078	3078
3079	3079
3080	3080
3081	3081	SB2857 - 85 - LRB103 36897 HLH 67010 b
3082	3082
3083	3083
3084	3084	SB2857- 86 -LRB103 36897 HLH 67010 b SB2857 - 86 - LRB103 36897 HLH 67010 b
3085	3085	SB2857 - 86 - LRB103 36897 HLH 67010 b
3086	3086	1 (35-5) Beginning August 23, 2001 and through June 30,
3087	3087	2 2016, food for human consumption that is to be consumed
3088	3088	3 off the premises where it is sold (other than alcoholic
3089	3089	4 beverages, soft drinks, and food that has been prepared
3090	3090	5 for immediate consumption) and prescription and
3091	3091	6 nonprescription medicines, drugs, medical appliances, and
3092	3092	7 insulin, urine testing materials, syringes, and needles
3093	3093	8 used by diabetics, for human use, when purchased for use
3094	3094	9 by a person receiving medical assistance under Article V
3095	3095	10 of the Illinois Public Aid Code who resides in a licensed
3096	3096	11 long-term care facility, as defined in the Nursing Home
3097	3097	12 Care Act, or a licensed facility as defined in the ID/DD
3098	3098	13 Community Care Act, the MC/DD Act, or the Specialized
3099	3099	14 Mental Health Rehabilitation Act of 2013.
3100	3100	15 (36) Beginning August 2, 2001, computers and
3101	3101	16 communications equipment utilized for any hospital purpose
3102	3102	17 and equipment used in the diagnosis, analysis, or
3103	3103	18 treatment of hospital patients sold to a lessor who leases
3104	3104	19 the equipment, under a lease of one year or longer
3105	3105	20 executed or in effect at the time of the purchase, to a
3106	3106	21 hospital that has been issued an active tax exemption
3107	3107	22 identification number by the Department under Section 1g
3108	3108	23 of this Act. This paragraph is exempt from the provisions
3109	3109	24 of Section 2-70.
3110	3110	25 (37) Beginning August 2, 2001, personal property sold
3111	3111	26 to a lessor who leases the property, under a lease of one
3112	3112
3113	3113
3114	3114
3115	3115
3116	3116
3117	3117	SB2857 - 86 - LRB103 36897 HLH 67010 b
3118	3118
3119	3119
3120	3120	SB2857- 87 -LRB103 36897 HLH 67010 b SB2857 - 87 - LRB103 36897 HLH 67010 b
3121	3121	SB2857 - 87 - LRB103 36897 HLH 67010 b
3122	3122	1 year or longer executed or in effect at the time of the
3123	3123	2 purchase, to a governmental body that has been issued an
3124	3124	3 active tax exemption identification number by the
3125	3125	4 Department under Section 1g of this Act. This paragraph is
3126	3126	5 exempt from the provisions of Section 2-70.
3127	3127	6 (38) Beginning on January 1, 2002 and through June 30,
3128	3128	7 2016, tangible personal property purchased from an
3129	3129	8 Illinois retailer by a taxpayer engaged in centralized
3130	3130	9 purchasing activities in Illinois who will, upon receipt
3131	3131	10 of the property in Illinois, temporarily store the
3132	3132	11 property in Illinois (i) for the purpose of subsequently
3133	3133	12 transporting it outside this State for use or consumption
3134	3134	13 thereafter solely outside this State or (ii) for the
3135	3135	14 purpose of being processed, fabricated, or manufactured
3136	3136	15 into, attached to, or incorporated into other tangible
3137	3137	16 personal property to be transported outside this State and
3138	3138	17 thereafter used or consumed solely outside this State. The
3139	3139	18 Director of Revenue shall, pursuant to rules adopted in
3140	3140	19 accordance with the Illinois Administrative Procedure Act,
3141	3141	20 issue a permit to any taxpayer in good standing with the
3142	3142	21 Department who is eligible for the exemption under this
3143	3143	22 paragraph (38). The permit issued under this paragraph
3144	3144	23 (38) shall authorize the holder, to the extent and in the
3145	3145	24 manner specified in the rules adopted under this Act, to
3146	3146	25 purchase tangible personal property from a retailer exempt
3147	3147	26 from the taxes imposed by this Act. Taxpayers shall
3148	3148
3149	3149
3150	3150
3151	3151
3152	3152
3153	3153	SB2857 - 87 - LRB103 36897 HLH 67010 b
3154	3154
3155	3155
3156	3156	SB2857- 88 -LRB103 36897 HLH 67010 b SB2857 - 88 - LRB103 36897 HLH 67010 b
3157	3157	SB2857 - 88 - LRB103 36897 HLH 67010 b
3158	3158	1 maintain all necessary books and records to substantiate
3159	3159	2 the use and consumption of all such tangible personal
3160	3160	3 property outside of the State of Illinois.
3161	3161	4 (39) Beginning January 1, 2008, tangible personal
3162	3162	5 property used in the construction or maintenance of a
3163	3163	6 community water supply, as defined under Section 3.145 of
3164	3164	7 the Environmental Protection Act, that is operated by a
3165	3165	8 not-for-profit corporation that holds a valid water supply
3166	3166	9 permit issued under Title IV of the Environmental
3167	3167	10 Protection Act. This paragraph is exempt from the
3168	3168	11 provisions of Section 2-70.
3169	3169	12 (40) Beginning January 1, 2010 and continuing through
3170	3170	13 December 31, 2029, materials, parts, equipment,
3171	3171	14 components, and furnishings incorporated into or upon an
3172	3172	15 aircraft as part of the modification, refurbishment,
3173	3173	16 completion, replacement, repair, or maintenance of the
3174	3174	17 aircraft. This exemption includes consumable supplies used
3175	3175	18 in the modification, refurbishment, completion,
3176	3176	19 replacement, repair, and maintenance of aircraft. However,
3177	3177	20 until January 1, 2024, this exemption excludes any
3178	3178	21 materials, parts, equipment, components, and consumable
3179	3179	22 supplies used in the modification, replacement, repair,
3180	3180	23 and maintenance of aircraft engines or power plants,
3181	3181	24 whether such engines or power plants are installed or
3182	3182	25 uninstalled upon any such aircraft. "Consumable supplies"
3183	3183	26 include, but are not limited to, adhesive, tape,
3184	3184
3185	3185
3186	3186
3187	3187
3188	3188
3189	3189	SB2857 - 88 - LRB103 36897 HLH 67010 b
3190	3190
3191	3191
3192	3192	SB2857- 89 -LRB103 36897 HLH 67010 b SB2857 - 89 - LRB103 36897 HLH 67010 b
3193	3193	SB2857 - 89 - LRB103 36897 HLH 67010 b
3194	3194	1 sandpaper, general purpose lubricants, cleaning solution,
3195	3195	2 latex gloves, and protective films.
3196	3196	3 Beginning January 1, 2010 and continuing through
3197	3197	4 December 31, 2023, this exemption applies only to the sale
3198	3198	5 of qualifying tangible personal property to persons who
3199	3199	6 modify, refurbish, complete, replace, or maintain an
3200	3200	7 aircraft and who (i) hold an Air Agency Certificate and
3201	3201	8 are empowered to operate an approved repair station by the
3202	3202	9 Federal Aviation Administration, (ii) have a Class IV
3203	3203	10 Rating, and (iii) conduct operations in accordance with
3204	3204	11 Part 145 of the Federal Aviation Regulations. The
3205	3205	12 exemption does not include aircraft operated by a
3206	3206	13 commercial air carrier providing scheduled passenger air
3207	3207	14 service pursuant to authority issued under Part 121 or
3208	3208	15 Part 129 of the Federal Aviation Regulations. From January
3209	3209	16 1, 2024 through December 31, 2029, this exemption applies
3210	3210	17 only to the use of qualifying tangible personal property
3211	3211	18 by: (A) persons who modify, refurbish, complete, repair,
3212	3212	19 replace, or maintain aircraft and who (i) hold an Air
3213	3213	20 Agency Certificate and are empowered to operate an
3214	3214	21 approved repair station by the Federal Aviation
3215	3215	22 Administration, (ii) have a Class IV Rating, and (iii)
3216	3216	23 conduct operations in accordance with Part 145 of the
3217	3217	24 Federal Aviation Regulations; and (B) persons who engage
3218	3218	25 in the modification, replacement, repair, and maintenance
3219	3219	26 of aircraft engines or power plants without regard to
3220	3220
3221	3221
3222	3222
3223	3223
3224	3224
3225	3225	SB2857 - 89 - LRB103 36897 HLH 67010 b
3226	3226
3227	3227
3228	3228	SB2857- 90 -LRB103 36897 HLH 67010 b SB2857 - 90 - LRB103 36897 HLH 67010 b
3229	3229	SB2857 - 90 - LRB103 36897 HLH 67010 b
3230	3230	1 whether or not those persons meet the qualifications of
3231	3231	2 item (A).
3232	3232	3 The changes made to this paragraph (40) by Public Act
3233	3233	4 98-534 are declarative of existing law. It is the intent
3234	3234	5 of the General Assembly that the exemption under this
3235	3235	6 paragraph (40) applies continuously from January 1, 2010
3236	3236	7 through December 31, 2024; however, no claim for credit or
3237	3237	8 refund is allowed for taxes paid as a result of the
3238	3238	9 disallowance of this exemption on or after January 1, 2015
3239	3239	10 and prior to February 5, 2020 (the effective date of
3240	3240	11 Public Act 101-629).
3241	3241	12 (41) Tangible personal property sold to a
3242	3242	13 public-facilities corporation, as described in Section
3243	3243	14 11-65-10 of the Illinois Municipal Code, for purposes of
3244	3244	15 constructing or furnishing a municipal convention hall,
3245	3245	16 but only if the legal title to the municipal convention
3246	3246	17 hall is transferred to the municipality without any
3247	3247	18 further consideration by or on behalf of the municipality
3248	3248	19 at the time of the completion of the municipal convention
3249	3249	20 hall or upon the retirement or redemption of any bonds or
3250	3250	21 other debt instruments issued by the public-facilities
3251	3251	22 corporation in connection with the development of the
3252	3252	23 municipal convention hall. This exemption includes
3253	3253	24 existing public-facilities corporations as provided in
3254	3254	25 Section 11-65-25 of the Illinois Municipal Code. This
3255	3255	26 paragraph is exempt from the provisions of Section 2-70.
3256	3256
3257	3257
3258	3258
3259	3259
3260	3260
3261	3261	SB2857 - 90 - LRB103 36897 HLH 67010 b
3262	3262
3263	3263
3264	3264	SB2857- 91 -LRB103 36897 HLH 67010 b SB2857 - 91 - LRB103 36897 HLH 67010 b
3265	3265	SB2857 - 91 - LRB103 36897 HLH 67010 b
3266	3266	1 (42) Beginning January 1, 2017 and through December
3267	3267	2 31, 2026, menstrual pads, tampons, and menstrual cups.
3268	3268	3 (43) Merchandise that is subject to the Rental
3269	3269	4 Purchase Agreement Occupation and Use Tax. The purchaser
3270	3270	5 must certify that the item is purchased to be rented
3271	3271	6 subject to a rental-purchase rental purchase agreement, as
3272	3272	7 defined in the Rental-Purchase Rental Purchase Agreement
3273	3273	8 Act, and provide proof of registration under the Rental
3274	3274	9 Purchase Agreement Occupation and Use Tax Act. This
3275	3275	10 paragraph is exempt from the provisions of Section 2-70.
3276	3276	11 (44) Qualified tangible personal property used in the
3277	3277	12 construction or operation of a data center that has been
3278	3278	13 granted a certificate of exemption by the Department of
3279	3279	14 Commerce and Economic Opportunity, whether that tangible
3280	3280	15 personal property is purchased by the owner, operator, or
3281	3281	16 tenant of the data center or by a contractor or
3282	3282	17 subcontractor of the owner, operator, or tenant. Data
3283	3283	18 centers that would have qualified for a certificate of
3284	3284	19 exemption prior to January 1, 2020 had Public Act 101-31
3285	3285	20 been in effect, may apply for and obtain an exemption for
3286	3286	21 subsequent purchases of computer equipment or enabling
3287	3287	22 software purchased or leased to upgrade, supplement, or
3288	3288	23 replace computer equipment or enabling software purchased
3289	3289	24 or leased in the original investment that would have
3290	3290	25 qualified.
3291	3291	26 The Department of Commerce and Economic Opportunity
3292	3292
3293	3293
3294	3294
3295	3295
3296	3296
3297	3297	SB2857 - 91 - LRB103 36897 HLH 67010 b
3298	3298
3299	3299
3300	3300	SB2857- 92 -LRB103 36897 HLH 67010 b SB2857 - 92 - LRB103 36897 HLH 67010 b
3301	3301	SB2857 - 92 - LRB103 36897 HLH 67010 b
3302	3302	1 shall grant a certificate of exemption under this item
3303	3303	2 (44) to qualified data centers as defined by Section
3304	3304	3 605-1025 of the Department of Commerce and Economic
3305	3305	4 Opportunity Law of the Civil Administrative Code of
3306	3306	5 Illinois.
3307	3307	6 For the purposes of this item (44):
3308	3308	7 "Data center" means a building or a series of
3309	3309	8 buildings rehabilitated or constructed to house
3310	3310	9 working servers in one physical location or multiple
3311	3311	10 sites within the State of Illinois.
3312	3312	11 "Qualified tangible personal property" means:
3313	3313	12 electrical systems and equipment; climate control and
3314	3314	13 chilling equipment and systems; mechanical systems and
3315	3315	14 equipment; monitoring and secure systems; emergency
3316	3316	15 generators; hardware; computers; servers; data storage
3317	3317	16 devices; network connectivity equipment; racks;
3318	3318	17 cabinets; telecommunications cabling infrastructure;
3319	3319	18 raised floor systems; peripheral components or
3320	3320	19 systems; software; mechanical, electrical, or plumbing
3321	3321	20 systems; battery systems; cooling systems and towers;
3322	3322	21 temperature control systems; other cabling; and other
3323	3323	22 data center infrastructure equipment and systems
3324	3324	23 necessary to operate qualified tangible personal
3325	3325	24 property, including fixtures; and component parts of
3326	3326	25 any of the foregoing, including installation,
3327	3327	26 maintenance, repair, refurbishment, and replacement of
3328	3328
3329	3329
3330	3330
3331	3331
3332	3332
3333	3333	SB2857 - 92 - LRB103 36897 HLH 67010 b
3334	3334
3335	3335
3336	3336	SB2857- 93 -LRB103 36897 HLH 67010 b SB2857 - 93 - LRB103 36897 HLH 67010 b
3337	3337	SB2857 - 93 - LRB103 36897 HLH 67010 b
3338	3338	1 qualified tangible personal property to generate,
3339	3339	2 transform, transmit, distribute, or manage electricity
3340	3340	3 necessary to operate qualified tangible personal
3341	3341	4 property; and all other tangible personal property
3342	3342	5 that is essential to the operations of a computer data
3343	3343	6 center. The term "qualified tangible personal
3344	3344	7 property" also includes building materials physically
3345	3345	8 incorporated into the qualifying data center. To
3346	3346	9 document the exemption allowed under this Section, the
3347	3347	10 retailer must obtain from the purchaser a copy of the
3348	3348	11 certificate of eligibility issued by the Department of
3349	3349	12 Commerce and Economic Opportunity.
3350	3350	13 This item (44) is exempt from the provisions of
3351	3351	14 Section 2-70.
3352	3352	15 (45) Beginning January 1, 2020 and through December
3353	3353	16 31, 2020, sales of tangible personal property made by a
3354	3354	17 marketplace seller over a marketplace for which tax is due
3355	3355	18 under this Act but for which use tax has been collected and
3356	3356	19 remitted to the Department by a marketplace facilitator
3357	3357	20 under Section 2d of the Use Tax Act are exempt from tax
3358	3358	21 under this Act. A marketplace seller claiming this
3359	3359	22 exemption shall maintain books and records demonstrating
3360	3360	23 that the use tax on such sales has been collected and
3361	3361	24 remitted by a marketplace facilitator. Marketplace sellers
3362	3362	25 that have properly remitted tax under this Act on such
3363	3363	26 sales may file a claim for credit as provided in Section 6
3364	3364
3365	3365
3366	3366
3367	3367
3368	3368
3369	3369	SB2857 - 93 - LRB103 36897 HLH 67010 b
3370	3370
3371	3371
3372	3372	SB2857- 94 -LRB103 36897 HLH 67010 b SB2857 - 94 - LRB103 36897 HLH 67010 b
3373	3373	SB2857 - 94 - LRB103 36897 HLH 67010 b
3374	3374	1 of this Act. No claim is allowed, however, for such taxes
3375	3375	2 for which a credit or refund has been issued to the
3376	3376	3 marketplace facilitator under the Use Tax Act, or for
3377	3377	4 which the marketplace facilitator has filed a claim for
3378	3378	5 credit or refund under the Use Tax Act.
3379	3379	6 (46) Beginning July 1, 2022, breast pumps, breast pump
3380	3380	7 collection and storage supplies, and breast pump kits.
3381	3381	8 This item (46) is exempt from the provisions of Section
3382	3382	9 2-70. As used in this item (46):
3383	3383	10 "Breast pump" means an electrically controlled or
3384	3384	11 manually controlled pump device designed or marketed to be
3385	3385	12 used to express milk from a human breast during lactation,
3386	3386	13 including the pump device and any battery, AC adapter, or
3387	3387	14 other power supply unit that is used to power the pump
3388	3388	15 device and is packaged and sold with the pump device at the
3389	3389	16 time of sale.
3390	3390	17 "Breast pump collection and storage supplies" means
3391	3391	18 items of tangible personal property designed or marketed
3392	3392	19 to be used in conjunction with a breast pump to collect
3393	3393	20 milk expressed from a human breast and to store collected
3394	3394	21 milk until it is ready for consumption.
3395	3395	22 "Breast pump collection and storage supplies"
3396	3396	23 includes, but is not limited to: breast shields and breast
3397	3397	24 shield connectors; breast pump tubes and tubing adapters;
3398	3398	25 breast pump valves and membranes; backflow protectors and
3399	3399	26 backflow protector adaptors; bottles and bottle caps
3400	3400
3401	3401
3402	3402
3403	3403
3404	3404
3405	3405	SB2857 - 94 - LRB103 36897 HLH 67010 b
3406	3406
3407	3407
3408	3408	SB2857- 95 -LRB103 36897 HLH 67010 b SB2857 - 95 - LRB103 36897 HLH 67010 b
3409	3409	SB2857 - 95 - LRB103 36897 HLH 67010 b
3410	3410	1 specific to the operation of the breast pump; and breast
3411	3411	2 milk storage bags.
3412	3412	3 "Breast pump collection and storage supplies" does not
3413	3413	4 include: (1) bottles and bottle caps not specific to the
3414	3414	5 operation of the breast pump; (2) breast pump travel bags
3415	3415	6 and other similar carrying accessories, including ice
3416	3416	7 packs, labels, and other similar products; (3) breast pump
3417	3417	8 cleaning supplies; (4) nursing bras, bra pads, breast
3418	3418	9 shells, and other similar products; and (5) creams,
3419	3419	10 ointments, and other similar products that relieve
3420	3420	11 breastfeeding-related symptoms or conditions of the
3421	3421	12 breasts or nipples, unless sold as part of a breast pump
3422	3422	13 kit that is pre-packaged by the breast pump manufacturer
3423	3423	14 or distributor.
3424	3424	15 "Breast pump kit" means a kit that: (1) contains no
3425	3425	16 more than a breast pump, breast pump collection and
3426	3426	17 storage supplies, a rechargeable battery for operating the
3427	3427	18 breast pump, a breastmilk cooler, bottle stands, ice
3428	3428	19 packs, and a breast pump carrying case; and (2) is
3429	3429	20 pre-packaged as a breast pump kit by the breast pump
3430	3430	21 manufacturer or distributor.
3431	3431	22 (47) Tangible personal property sold by or on behalf
3432	3432	23 of the State Treasurer pursuant to the Revised Uniform
3433	3433	24 Unclaimed Property Act. This item (47) is exempt from the
3434	3434	25 provisions of Section 2-70.
3435	3435	26 (48) Beginning on January 1, 2024, tangible personal
3436	3436
3437	3437
3438	3438
3439	3439
3440	3440
3441	3441	SB2857 - 95 - LRB103 36897 HLH 67010 b
3442	3442
3443	3443
3444	3444	SB2857- 96 -LRB103 36897 HLH 67010 b SB2857 - 96 - LRB103 36897 HLH 67010 b
3445	3445	SB2857 - 96 - LRB103 36897 HLH 67010 b
3446	3446	1 property purchased by an active duty member of the armed
3447	3447	2 forces of the United States who presents valid military
3448	3448	3 identification and purchases the property using a form of
3449	3449	4 payment where the federal government is the payor. The
3450	3450	5 member of the armed forces must complete, at the point of
3451	3451	6 sale, a form prescribed by the Department of Revenue
3452	3452	7 documenting that the transaction is eligible for the
3453	3453	8 exemption under this paragraph. Retailers must keep the
3454	3454	9 form as documentation of the exemption in their records
3455	3455	10 for a period of not less than 6 years. "Armed forces of the
3456	3456	11 United States" means the United States Army, Navy, Air
3457	3457	12 Force, Marine Corps, or Coast Guard. This paragraph is
3458	3458	13 exempt from the provisions of Section 2-70.
3459	3459	14 (49) Qualified tangible personal property that is (i)
3460	3460	15 used in the construction or development of a megaproject
3461	3461	16 for which a certificate has been issued prior to December
3462	3462	17 31, 2030 by the Department of Commerce and Economic
3463	3463	18 Opportunity under Division 22 of Article 10 of the
3464	3464	19 Property Tax Code and (ii) purchased prior to the
3465	3465	20 Department's issuance of the megaproject certificate or
3466	3466	21 during the investment period, whether that tangible
3467	3467	22 personal property is purchased by the owner, operator, or
3468	3468	23 tenant of the megaproject or by a contractor or
3469	3469	24 subcontractor of the owner, operator, or tenant.
3470	3470	25 As used in this item (49):
3471	3471	26 "Facility" means a building or series of buildings.
3472	3472
3473	3473
3474	3474
3475	3475
3476	3476
3477	3477	SB2857 - 96 - LRB103 36897 HLH 67010 b
3478	3478
3479	3479
3480	3480	SB2857- 97 -LRB103 36897 HLH 67010 b SB2857 - 97 - LRB103 36897 HLH 67010 b
3481	3481	SB2857 - 97 - LRB103 36897 HLH 67010 b
3482	3482	1 "Investment period" means the period ending 7 years
3483	3483	2 after the date on which the Department of Commerce and
3484	3484	3 Economic Opportunity issues the megaproject certificate,
3485	3485	4 or such other longer period of time as the local
3486	3486	5 municipality, local taxing districts, and the company may
3487	3487	6 agree to, not to exceed an initial period of 10 years.
3488	3488	7 "Megaproject" means a facility that is rehabilitated
3489	3489	8 or constructed as described in Division 22 of Article 10
3490	3490	9 of the Property Tax Code.
3491	3491	10 "Qualified tangible personal property" means all
3492	3492	11 tangible personal property that is essential to the
3493	3493	12 construction or development of a megaproject, including,
3494	3494	13 but not limited to: electrical systems and equipment;
3495	3495	14 climate control and chilling equipment and systems;
3496	3496	15 mechanical systems and equipment; monitoring and secure
3497	3497	16 systems; emergency generators; hardware; computers;
3498	3498	17 servers; data storage devices; network connectivity
3499	3499	18 equipment; racks; cabinets; telecommunications cabling
3500	3500	19 infrastructure; raised floor systems; peripheral
3501	3501	20 components or systems; software; mechanical, electrical,
3502	3502	21 or plumbing systems; battery systems; cooling systems and
3503	3503	22 towers; temperature control systems; other cabling; and
3504	3504	23 other infrastructure, equipment, and systems necessary to
3505	3505	24 operate qualified tangible personal property, including
3506	3506	25 fixtures; and component parts of those items, including
3507	3507	26 installation, maintenance, repair, refurbishment, and
3508	3508
3509	3509
3510	3510
3511	3511
3512	3512
3513	3513	SB2857 - 97 - LRB103 36897 HLH 67010 b
3514	3514
3515	3515
3516	3516	SB2857- 98 -LRB103 36897 HLH 67010 b SB2857 - 98 - LRB103 36897 HLH 67010 b
3517	3517	SB2857 - 98 - LRB103 36897 HLH 67010 b
3518	3518	1 replacement of qualified tangible personal property to
3519	3519	2 generate, transform, transmit, distribute, or manage
3520	3520	3 electricity necessary to operate qualified tangible
3521	3521	4 personal property. The term "qualified tangible personal
3522	3522	5 property" also includes building materials to be
3523	3523	6 incorporated into the megaproject. To document the
3524	3524	7 exemption allowed under this Section, the retailer,
3525	3525	8 contractor, subcontractor, or supplier must obtain from
3526	3526	9 the purchaser a copy of the certificate issued by the
3527	3527	10 Department of Commerce and Economic Opportunity for the
3528	3528	11 megaproject as described and defined in Division 22 of
3529	3529	12 Article 10 of the Property Tax Code.
3530	3530	13 (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
3531	3531	14 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
3532	3532	15 Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
3533	3533	16 5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
3534	3534	17 5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
3535	3535	18 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised
3536	3536	19 12-12-23.)
3537	3537	20 Section 25. The Property Tax Code is amended by adding
3538	3538	21 Division 22 to Article 10 as follows:
3539	3539	22 (35 ILCS 200/Art. 10 Div. 22 heading new)
3540	3540	23 Division 22. Megaprojects
3541	3541
3542	3542
3543	3543
3544	3544
3545	3545
3546	3546	SB2857 - 98 - LRB103 36897 HLH 67010 b
3547	3547
3548	3548
3549	3549	SB2857- 99 -LRB103 36897 HLH 67010 b SB2857 - 99 - LRB103 36897 HLH 67010 b
3550	3550	SB2857 - 99 - LRB103 36897 HLH 67010 b
3551	3551	1 (35 ILCS 200/10-910 new)
3552	3552	2 Sec. 10-910. Megaproject Assessment Freeze and Payment
3553	3553	3 Law; definitions. This Division 22 may be cited as the
3554	3554	4 Megaproject Assessment Freeze and Payment Law.
3555	3555	5 As used in this Division:
3556	3556	6 "Assessment officer" means the chief county assessment
3557	3557	7 officer of the county in which the megaproject is located.
3558	3558	8 "Assessment period" means the period beginning on the
3559	3559	9 first day of the calendar year after the calendar year in which
3560	3560	10 a megaproject is placed in service and ending on the date when
3561	3561	11 the megaproject no longer qualifies as a megaproject under
3562	3562	12 this Division.
3563	3563	13 "Base tax year" means the tax year prior to the first
3564	3564	14 calendar year during which the Department issues a megaproject
3565	3565	15 certificate under this Division.
3566	3566	16 "Base year" means:
3567	3567	17 (1) the calendar year prior to the calendar year in
3568	3568	18 which the Department issues the megaproject certificate,
3569	3569	19 if the Department issues a megaproject certificate for a
3570	3570	20 project located on the property without granting
3571	3571	21 preliminary approval for the project pursuant to Section
3572	3572	22 10-940; or
3573	3573	23 (2) the calendar year prior to the calendar year in
3574	3574	24 which the Department grants that preliminary approval, if
3575	3575	25 the Department grants preliminary approval pursuant to
3576	3576	26 Section 10-940 for a megaproject located on the property.
3577	3577
3578	3578
3579	3579
3580	3580
3581	3581
3582	3582	SB2857 - 99 - LRB103 36897 HLH 67010 b
3583	3583
3584	3584
3585	3585	SB2857- 100 -LRB103 36897 HLH 67010 b SB2857 - 100 - LRB103 36897 HLH 67010 b
3586	3586	SB2857 - 100 - LRB103 36897 HLH 67010 b
3587	3587	1 "Base year valuation" means the assessed value, in the
3588	3588	2 base year, of the property comprising the megaproject.
3589	3589	3 "Company" means one or more entities whose aggregate
3590	3590	4 investment in the megaproject meets the minimum investment
3591	3591	5 required under this Division. The term "company" includes a
3592	3592	6 company affiliate unless the context clearly indicates
3593	3593	7 otherwise.
3594	3594	8 "Company affiliate" means an entity that joins with or is
3595	3595	9 an affiliate of a company and that participates in the
3596	3596	10 investment in, or financing of, a megaproject.
3597	3597	11 "Consumer Price Index" means the index published by the
3598	3598	12 Bureau of Labor Statistics of the United States Department of
3599	3599	13 Labor that measures the average change in prices of goods and
3600	3600	14 services purchased by all urban consumers, United States city
3601	3601	15 average, all items, 1982-84 = 100.
3602	3602	16 "Department" means the Department of Commerce and Economic
3603	3603	17 Opportunity.
3604	3604	18 "Eligible costs" means all costs incurred by or on behalf
3605	3605	19 of, or allocated to, a company, prior to the Department's
3606	3606	20 issuance of the megaproject certificate or during the
3607	3607	21 investment period, to create or construct a megaproject.
3608	3608	22 "Eligible costs" includes, without limitation:
3609	3609	23 (1) the purchase, site preparation, renovation,
3610	3610	24 rehabilitation, and construction of land, buildings,
3611	3611	25 structures, equipment, and furnishings used for or in the
3612	3612	26 megaproject;
3613	3613
3614	3614
3615	3615
3616	3616
3617	3617
3618	3618	SB2857 - 100 - LRB103 36897 HLH 67010 b
3619	3619
3620	3620
3621	3621	SB2857- 101 -LRB103 36897 HLH 67010 b SB2857 - 101 - LRB103 36897 HLH 67010 b
3622	3622	SB2857 - 101 - LRB103 36897 HLH 67010 b
3623	3623	1 (2) any goods or services for the megaproject that are
3624	3624	2 purchased and capitalized under generally accepted
3625	3625	3 accounting principles, including any organizational costs
3626	3626	4 and research and development costs incurred in Illinois;
3627	3627	5 (3) capitalized lease costs for land, buildings,
3628	3628	6 structures, and equipment valued at their present value
3629	3629	7 using the interest rate at which the company borrows funds
3630	3630	8 prevailing at the time the company entered into the lease;
3631	3631	9 (4) infrastructure development costs;
3632	3632	10 (5) debt service and project financing costs;
3633	3633	11 (6) noncapitalized research and development costs;
3634	3634	12 (7) job training and education costs;
3635	3635	13 (8) lease and relocation costs; and
3636	3636	14 (9) amounts expended by a company or company affiliate
3637	3637	15 as a nonresponsible party pursuant to a voluntary program
3638	3638	16 of site remediation, including amounts expended to obtain
3639	3639	17 a certification of completion, if completion of
3640	3640	18 remediation is certified by the Illinois Environmental
3641	3641	19 Protection Agency.
3642	3642	20 "Entity" means a sole proprietor, partnership, firm,
3643	3643	21 corporation, limited liability company, association, or other
3644	3644	22 business enterprise.
3645	3645	23 "Full-time employee" means an individual who is employed
3646	3646	24 for consideration for at least 35 hours each week or who
3647	3647	25 renders any other standard of service generally accepted by
3648	3648	26 industry custom or practice as a full-time employee. An
3649	3649
3650	3650
3651	3651
3652	3652
3653	3653
3654	3654	SB2857 - 101 - LRB103 36897 HLH 67010 b
3655	3655
3656	3656
3657	3657	SB2857- 102 -LRB103 36897 HLH 67010 b SB2857 - 102 - LRB103 36897 HLH 67010 b
3658	3658	SB2857 - 102 - LRB103 36897 HLH 67010 b
3659	3659	1 individual for whom a W-2 is issued by a professional employer
3660	3660	2 organization is a full-time employee if he or she is employed
3661	3661	3 in the service of the applicant for at least 35 hours each week
3662	3662	4 or renders any other standard of service generally accepted by
3663	3663	5 industry custom or practice as a full-time employment. An
3664	3664	6 owner, operator, or tenant who employs labor or services at a
3665	3665	7 specific site or facility under contract with another may
3666	3666	8 declare one full-time job for every 1,820 man-hours worked per
3667	3667	9 year under the contract. Vacations, paid holidays, and sick
3668	3668	10 time are included in this computation, but overtime is not
3669	3669	11 considered a part of regular hours.
3670	3670	12 "Incentive agreement" means an agreement between a
3671	3671	13 company, a local municipality, and the local taxing districts
3672	3672	14 obligating the company to make the special payment under this
3673	3673	15 Division, in addition to paying property taxes, during the
3674	3674	16 incentive period for a megaproject.
3675	3675	17 "Incentive period" means the period beginning on the first
3676	3676	18 day of the calendar year after the calendar year in which the
3677	3677	19 megaproject is placed in service and each calendar year
3678	3678	20 thereafter until the earlier of (i) the expiration or
3679	3679	21 termination of the incentive agreement or (ii) the revocation
3680	3680	22 of the megaproject certificate.
3681	3681	23 "Inducement resolution" means a resolution adopted by the
3682	3682	24 local municipality setting forth the commitment of the local
3683	3683	25 municipality to enter into an incentive agreement.
3684	3684	26 "Investment period" means the period ending 7 years after
3685	3685
3686	3686
3687	3687
3688	3688
3689	3689
3690	3690	SB2857 - 102 - LRB103 36897 HLH 67010 b
3691	3691
3692	3692
3693	3693	SB2857- 103 -LRB103 36897 HLH 67010 b SB2857 - 103 - LRB103 36897 HLH 67010 b
3694	3694	SB2857 - 103 - LRB103 36897 HLH 67010 b
3695	3695	1 the date on which the Department issues the megaproject
3696	3696	2 certificate, or such other longer period of time as the local
3697	3697	3 municipality, the local taxing districts, and the company may
3698	3698	4 agree to, not to exceed an initial period of 10 years.
3699	3699	5 "Local municipality" means the city, village, or
3700	3700	6 incorporated town in which the megaproject is located or, if
3701	3701	7 the megaproject is located in an unincorporated area, the
3702	3702	8 county in which the megaproject is located.
3703	3703	9 "Local taxing district means a taxing district that levies
3704	3704	10 taxes totaling 10% or more of the total property tax bill for
3705	3705	11 the property on which the megaproject is located.
3706	3706	12 "Megaproject" means a project that satisfies the minimum
3707	3707	13 investment and other requirements of this Division.
3708	3708	14 "Megaproject certificate" means a certificate issued by
3709	3709	15 the Department that authorizes an assessment freeze as
3710	3710	16 provided in this Division.
3711	3711	17 "Minimum investment" means an investment in the
3712	3712	18 megaproject of at least $100,000,000 in eligible costs within
3713	3713	19 the investment period.
3714	3714	20 "Minority person" means a person who is a citizen or
3715	3715	21 lawful permanent resident of the United States and who is any
3716	3716	22 of the following:
3717	3717	23 (1) American Indian or Alaska Native (a person having
3718	3718	24 origins in any of the original peoples of North and South
3719	3719	25 America, including Central America, and who maintains
3720	3720	26 tribal affiliation or community attachment).
3721	3721
3722	3722
3723	3723
3724	3724
3725	3725
3726	3726	SB2857 - 103 - LRB103 36897 HLH 67010 b
3727	3727
3728	3728
3729	3729	SB2857- 104 -LRB103 36897 HLH 67010 b SB2857 - 104 - LRB103 36897 HLH 67010 b
3730	3730	SB2857 - 104 - LRB103 36897 HLH 67010 b
3731	3731	1 (2) Asian (a person having origins in any of the
3732	3732	2 original peoples of the Far East, Southeast Asia, or the
3733	3733	3 Indian subcontinent, including, but not limited to,
3734	3734	4 Cambodia, China, India, Japan, Korea, Malaysia, Pakistan,
3735	3735	5 the Philippine Islands, Thailand, and Vietnam).
3736	3736	6 (3) Black or African American (a person having origins
3737	3737	7 in any of the black racial groups of Africa).
3738	3738	8 (4) Hispanic or Latino (a person of Cuban, Mexican,
3739	3739	9 Puerto Rican, South or Central American, or other Spanish
3740	3740	10 culture or origin, regardless of race).
3741	3741	11 (5) Native Hawaiian or Other Pacific Islander (a
3742	3742	12 person having origins in any of the original peoples of
3743	3743	13 Hawaii, Guam, Samoa, or other Pacific Islands).
3744	3744	14 "Minority-owned business" means a business that is at
3745	3745	15 least 51% owned by one or more minority persons, or that, in
3746	3746	16 the case of a corporation, has at least 51% of its stock owned
3747	3747	17 by one or more minority persons, and that, in either case, is
3748	3748	18 managed and operated on a daily basis by one or more of the
3749	3749	19 minority individuals who own the business.
3750	3750	20 "New full-time employee" means a full-time employee who
3751	3751	21 first became employed by the owner, operator, contractor, or
3752	3752	22 tenant of the megaproject during the incentive period or
3753	3753	23 investment period and whose hiring results in a net increase
3754	3754	24 in the owner, operator, contractor, or tenant's total number
3755	3755	25 of full-time Illinois employees.
3756	3756	26 "New full-time employee" does not include:
3757	3757
3758	3758
3759	3759
3760	3760
3761	3761
3762	3762	SB2857 - 104 - LRB103 36897 HLH 67010 b
3763	3763
3764	3764
3765	3765	SB2857- 105 -LRB103 36897 HLH 67010 b SB2857 - 105 - LRB103 36897 HLH 67010 b
3766	3766	SB2857 - 105 - LRB103 36897 HLH 67010 b
3767	3767	1 (1) a person who was previously employed in Illinois
3768	3768	2 by the applicant or a related family member prior to the
3769	3769	3 onset of the investment or incentive period; or
3770	3770	4 (2) an individual who has a direct or indirect
3771	3771	5 ownership interest of at least 5% in the profits, capital,
3772	3772	6 or value of the applicant.
3773	3773	7 "Placed in service" means that the company has commenced
3774	3774	8 its business operations at the megaproject site and has met
3775	3775	9 its job creation requirements under this Section by hiring or
3776	3776	10 causing to be hired at least 100 new full-time employees who
3777	3777	11 provide support to the megaproject's business operations and
3778	3778	12 work in the State of Illinois. If a company pauses or shuts
3779	3779	13 down its business operations for a period of more than 30 days,
3780	3780	14 then the megaproject shall no longer be considered placed in
3781	3781	15 service.
3782	3782	16 "Project" means land, buildings, and other improvements on
3783	3783	17 the land, including water facilities, sewage treatment and
3784	3784	18 disposal facilities, air pollution control facilities, and all
3785	3785	19 other machinery, apparatuses, equipment, office facilities,
3786	3786	20 related infrastructure, and furnishings that are considered
3787	3787	21 necessary, suitable, or useful by a company and comprise the
3788	3788	22 megaproject, including all such property subject to assessment
3789	3789	23 under the Property Tax Code.
3790	3790	24 "Special payment" means the annual amount paid in addition
3791	3791	25 to property taxes paid during the incentive period as provided
3792	3792	26 in the incentive agreement.
3793	3793
3794	3794
3795	3795
3796	3796
3797	3797
3798	3798	SB2857 - 105 - LRB103 36897 HLH 67010 b
3799	3799
3800	3800
3801	3801	SB2857- 106 -LRB103 36897 HLH 67010 b SB2857 - 106 - LRB103 36897 HLH 67010 b
3802	3802	SB2857 - 106 - LRB103 36897 HLH 67010 b
3803	3803	1 "Sports stadium" means a facility, stadium, arena, or
3804	3804	2 other structure where athletic contests are held and sports
3805	3805	3 teams practice and perform.
3806	3806	4 "Taxing district" has the meaning set forth in Section
3807	3807	5 1-150.
3808	3808	6 "Termination date" means the last day of a calendar year
3809	3809	7 that is no later than the 23rd year following the first
3810	3810	8 calendar year in which a megaproject is placed in service. A
3811	3811	9 company may apply to the local municipality and local taxing
3812	3812	10 districts prior to the termination date for an extension of
3813	3813	11 the termination date beyond the 23rd year for up to 17
3814	3814	12 additional years, for a total of 40 years. The corporate
3815	3815	13 authorities of the local municipality and the local taxing
3816	3816	14 districts shall approve an extension by resolution upon a
3817	3817	15 finding of substantial public benefit. A copy of the
3818	3818	16 resolution must be delivered to the Department within 30 days
3819	3819	17 of the date the resolution was adopted. If the incentive
3820	3820	18 agreement is terminated under Section 10-937, then the
3821	3821	19 termination date is the date the agreement is terminated.
3822	3822	20 (35 ILCS 200/10-915 new)
3823	3823	21 Sec. 10-915. Valuation during incentive period;
3824	3824	22 eligibility.
3825	3825	23 (a) Property certified by the Department as megaproject
3826	3826	24 property pursuant to this Division is eligible for an
3827	3827	25 assessment freeze, as provided in this Division, eliminating
3828	3828
3829	3829
3830	3830
3831	3831
3832	3832
3833	3833	SB2857 - 106 - LRB103 36897 HLH 67010 b
3834	3834
3835	3835
3836	3836	SB2857- 107 -LRB103 36897 HLH 67010 b SB2857 - 107 - LRB103 36897 HLH 67010 b
3837	3837	SB2857 - 107 - LRB103 36897 HLH 67010 b
3838	3838	1 from consideration, for assessment purposes during the
3839	3839	2 incentive period, the value added to the property by the
3840	3840	3 project and limiting the total valuation of the property
3841	3841	4 during the incentive period to the base year valuation. If the
3842	3842	5 company does not anticipate completing the project within the
3843	3843	6 investment period, then the local municipality and local
3844	3844	7 taxing districts may approve one or more extensions of time to
3845	3845	8 complete the project. However, the local municipality and
3846	3846	9 local taxing districts may not extend the project for a period
3847	3847	10 that exceeds 5 years after the last day of the investment
3848	3848	11 period. Unless approved as part of the original incentive
3849	3849	12 agreement, the corporate authorities of the local municipality
3850	3850	13 and local taxing districts may approve an extension under this
3851	3851	14 subsection by resolution, a copy of which must be delivered to
3852	3852	15 the Department within 30 days after the date the resolution is
3853	3853	16 adopted.
3854	3854	17 (b) To qualify for a megaproject certificate, the company
3855	3855	18 must:
3856	3856	19 (1) make the minimum investment in the megaproject
3857	3857	20 during the investment period;
3858	3858	21 (2) enter into an incentive agreement with the local
3859	3859	22 municipality and local taxing districts as described in
3860	3860	23 this Division;
3861	3861	24 (3) enter into a project labor agreement with the
3862	3862	25 applicable local building trades council prior to the
3863	3863	26 commencement of any demolition, building construction, or
3864	3864
3865	3865
3866	3866
3867	3867
3868	3868
3869	3869	SB2857 - 107 - LRB103 36897 HLH 67010 b
3870	3870
3871	3871
3872	3872	SB2857- 108 -LRB103 36897 HLH 67010 b SB2857 - 108 - LRB103 36897 HLH 67010 b
3873	3873	SB2857 - 108 - LRB103 36897 HLH 67010 b
3874	3874	1 building renovation related to the project;
3875	3875	2 (4) establish the goal of awarding 20% of the total
3876	3876	3 dollar amount of contracts that are related to the project
3877	3877	4 and are awarded by the company during each calendar year
3878	3878	5 to minority-owned businesses; and
3879	3879	6 (5) enter into a memorandum of understanding with the
3880	3880	7 Department committing to the creation of at least 100 new
3881	3881	8 full-time jobs as a result of the megaproject.
3882	3882	9 (c) For purposes of this Division, if a single company
3883	3883	10 enters into a financing arrangement of the type described in
3884	3884	11 subsection (b) of Section 10-950, the investment in or
3885	3885	12 financing of the property by a developer, lessor, financing
3886	3886	13 entity, or other third party in accordance with this
3887	3887	14 arrangement is considered investment by the company.
3888	3888	15 Investment by a related person to the company is considered
3889	3889	16 investment by the company.
3890	3890	17 (35 ILCS 200/10-920 new)
3891	3891	18 Sec. 10-920. Incentive agreement; assessment freeze for
3892	3892	19 megaprojects; incentive period; inducement resolution;
3893	3893	20 location of the project; criteria to qualify.
3894	3894	21 (a) To obtain the benefits provided in this Division, the
3895	3895	22 company shall apply in writing to the local municipality and
3896	3896	23 local taxing districts to enter into an incentive agreement
3897	3897	24 with the municipality and local taxing districts, in the form
3898	3898	25 and manner required by the local municipality and local taxing
3899	3899
3900	3900
3901	3901
3902	3902
3903	3903
3904	3904	SB2857 - 108 - LRB103 36897 HLH 67010 b
3905	3905
3906	3906
3907	3907	SB2857- 109 -LRB103 36897 HLH 67010 b SB2857 - 109 - LRB103 36897 HLH 67010 b
3908	3908	SB2857 - 109 - LRB103 36897 HLH 67010 b
3909	3909	1 districts, respectively, and shall certify to the facts
3910	3910	2 asserted in the application.
3911	3911	3 (b) The corporate authorities of the local municipality,
3912	3912	4 prior to entering into an incentive agreement under this
3913	3913	5 Section, shall hold a public hearing to consider the
3914	3914	6 application. The amount and terms of the proposed special
3915	3915	7 payment and the duration of the incentive agreement shall be
3916	3916	8 considered at the public hearing.
3917	3917	9 (c) Copies of the completed application shall be provided
3918	3918	10 to each taxing district for which property taxes were assessed
3919	3919	11 on the property for the immediately preceding tax year. Those
3920	3920	12 copies shall be provided at least 30 days prior to the
3921	3921	13 scheduled public hearing at which the corporate authorities of
3922	3922	14 the local municipality will consider the application.
3923	3923	15 (d) The company, the local municipality, and the local
3924	3924	16 taxing districts shall enter into an incentive agreement
3925	3925	17 requiring the special payment described in Section 10-925. The
3926	3926	18 corporate authorities of the local municipality shall adopt an
3927	3927	19 ordinance approving the incentive agreement.
3928	3928	20 (e) If an incentive agreement is not executed within 5
3929	3929	21 years after the local municipality's adoption of an inducement
3930	3930	22 resolution, expenditures incurred by the company more than 5
3931	3931	23 years prior to the execution of the incentive agreement shall
3932	3932	24 not qualify as part of the minimum investment.
3933	3933	25 (f) To be eligible to enter into an incentive agreement
3934	3934	26 under this Division, the company must commit to a project that
3935	3935
3936	3936
3937	3937
3938	3938
3939	3939
3940	3940	SB2857 - 109 - LRB103 36897 HLH 67010 b
3941	3941
3942	3942
3943	3943	SB2857- 110 -LRB103 36897 HLH 67010 b SB2857 - 110 - LRB103 36897 HLH 67010 b
3944	3944	SB2857 - 110 - LRB103 36897 HLH 67010 b
3945	3945	1 meets the minimum investment and new job creation requirements
3946	3946	2 set forth in this Division.
3947	3947	3 (35 ILCS 200/10-925 new)
3948	3948	4 Sec. 10-925. Contents of incentive agreement.
3949	3949	5 (a) The incentive agreement under Section 10-920 must
3950	3950	6 require the company to pay, or be responsible for the payment
3951	3951	7 of, an annual special payment to the local municipality and
3952	3952	8 the local taxing districts, beginning with the first tax year
3953	3953	9 for which the assessment freeze under this Division is applied
3954	3954	10 to the megaproject. The amount of the special payment shall be
3955	3955	11 established by the local municipality and local taxing
3956	3956	12 districts in the incentive agreement and may be a fixed amount
3957	3957	13 for the duration of the incentive period or may be subject to
3958	3958	14 adjustment (downward or upward) based on factors memorialized
3959	3959	15 in the incentive agreement.
3960	3960	16 Unless the special payment is negotiated as a fixed
3961	3961	17 payment for the duration of the incentive period, the parties
3962	3962	18 shall conduct an impact analysis study on the megaproject
3963	3963	19 every 5 years, and the special payment shall be adjusted based
3964	3964	20 on the results of that study; provided, however, the
3965	3965	21 adjustment shall not be less than the initial special payment
3966	3966	22 adjusted for inflation as measured by the Consumer Price
3967	3967	23 Index.
3968	3968	24 The portion of the special payment due to the local school
3969	3969	25 districts shall be increased annually by the lesser of (i) 5%
3970	3970
3971	3971
3972	3972
3973	3973
3974	3974
3975	3975	SB2857 - 110 - LRB103 36897 HLH 67010 b
3976	3976
3977	3977
3978	3978	SB2857- 111 -LRB103 36897 HLH 67010 b SB2857 - 111 - LRB103 36897 HLH 67010 b
3979	3979	SB2857 - 111 - LRB103 36897 HLH 67010 b
3980	3980	1 or (ii) the percentage increase, if any, in the Consumer Price
3981	3981	2 Index for the 12 months ending in September of the immediately
3982	3982	3 preceding calendar year, and may be further increased or
3983	3983	4 decreased every 5 years based on the results of the impact
3984	3984	5 analysis study.
3985	3985	6 (b) The incentive agreement shall obligate the company to
3986	3986	7 operate the megaproject at the designated project location for
3987	3987	8 a minimum of 20 years.
3988	3988	9 (c) The incentive agreement may contain such other terms
3989	3989	10 and conditions as are mutually agreeable to the local
3990	3990	11 municipality, the local taxing districts, and the company and
3991	3991	12 are consistent with the requirements of this Division,
3992	3992	13 including, without limitation, operational and additional job
3993	3993	14 creation requirements.
3994	3994	15 (d) In addition, all incentive agreements entered into
3995	3995	16 pursuant to Section 10-920 must include, as the first portion
3996	3996	17 of the document, a recapitulation of the remaining contents of
3997	3997	18 the document, which shall include the following:
3998	3998	19 (1) the legal name of each party to the agreement;
3999	3999	20 (2) the street address of the project and the property
4000	4000	21 subject to the agreement;
4001	4001	22 (3) the agreed minimum investment;
4002	4002	23 (3.5) the agreed number of new jobs to be created;
4003	4003	24 (4) the term of the agreement;
4004	4004	25 (5) a schedule showing the amount of the special
4005	4005	26 payment and its calculation for each year of the
4006	4006
4007	4007
4008	4008
4009	4009
4010	4010
4011	4011	SB2857 - 111 - LRB103 36897 HLH 67010 b
4012	4012
4013	4013
4014	4014	SB2857- 112 -LRB103 36897 HLH 67010 b SB2857 - 112 - LRB103 36897 HLH 67010 b
4015	4015	SB2857 - 112 - LRB103 36897 HLH 67010 b
4016	4016	1 agreement;
4017	4017	2 (6) a schedule showing the amount to be distributed
4018	4018	3 annually to each local taxing district, as set forth in
4019	4019	4 the incentive agreement;
4020	4020	5 (7) any other feature or aspect of the agreement which
4021	4021	6 may affect the calculation of items (5) and (6) of this
4022	4022	7 subsection; and
4023	4023	8 (8) the party or parties to the agreement who are
4024	4024	9 responsible for updating the information contained in the
4025	4025	10 summary document.
4026	4026	11 (35 ILCS 200/10-927 new)
4027	4027	12 Sec. 10-927. Minimum job creation requirements.
4028	4028	13 (a) The company must hire at least 100 new full-time
4029	4029	14 employees as a result of the megaproject beginning no later
4030	4030	15 than when the project is placed in service and lasting for the
4031	4031	16 duration of the incentive period. These new full-time
4032	4032	17 employees must be hired to support the business operations of
4033	4033	18 the megaproject and be located within the State of Illinois.
4034	4034	19 (b) A company may not satisfy the requirements of this
4035	4035	20 Section by relocating jobs from one site in Illinois to
4036	4036	21 another site in Illinois.
4037	4037	22 (35 ILCS 200/10-930 new)
4038	4038	23 Sec. 10-930. Installment bills; distribution of special
4039	4039	24 payments.
4040	4040
4041	4041
4042	4042
4043	4043
4044	4044
4045	4045	SB2857 - 112 - LRB103 36897 HLH 67010 b
4046	4046
4047	4047
4048	4048	SB2857- 113 -LRB103 36897 HLH 67010 b SB2857 - 113 - LRB103 36897 HLH 67010 b
4049	4049	SB2857 - 113 - LRB103 36897 HLH 67010 b
4050	4050	1 (a) The local municipality shall prepare a bill for the
4051	4051	2 company for each installment of the special payment according
4052	4052	3 to the schedule set forth in paragraph (5) of subsection (d) of
4053	4053	4 Section 10-925, or as modified pursuant to paragraph (7) of
4054	4054	5 subsection (d) of Section 10-925, and the company shall make
4055	4055	6 direct payments to the affected taxing entities according to
4056	4056	7 the schedule in paragraph (6) of subsection (d) of Section
4057	4057	8 10-925 or as modified in paragraph (7) of subsection (d) of
4058	4058	9 Section 10-925.
4059	4059	10 (b) The company shall make direct payments of the special
4060	4060	11 payment to the local taxing districts associated with the
4061	4061	12 megaproject within 30 days after receipt by the company of the
4062	4062	13 bill prepared by the local municipality.
4063	4063	14 (c) Misallocations of the special payments may be
4064	4064	15 corrected by adjusting later distributions, but these
4065	4065	16 adjustments must be made in the next succeeding year following
4066	4066	17 identification and resolution of the misallocation. To the
4067	4067	18 extent that distributions have been made improperly in
4068	4068	19 previous years, claims for adjustment must be made within one
4069	4069	20 year of the distribution.
4070	4070	21 (35 ILCS 200/10-937 new)
4071	4071	22 Sec. 10-937. Termination of incentive agreement; automatic
4072	4072	23 termination; minimum level of investment and new job creation
4073	4073	24 required to remain qualified for assessment freeze.
4074	4074	25 (a) The local municipality, the local taxing districts,
4075	4075
4076	4076
4077	4077
4078	4078
4079	4079
4080	4080	SB2857 - 113 - LRB103 36897 HLH 67010 b
4081	4081
4082	4082
4083	4083	SB2857- 114 -LRB103 36897 HLH 67010 b SB2857 - 114 - LRB103 36897 HLH 67010 b
4084	4084	SB2857 - 114 - LRB103 36897 HLH 67010 b
4085	4085	1 and the company may mutually agree to terminate the incentive
4086	4086	2 agreement at any time. From the date of termination, the
4087	4087	3 megaproject is subject to assessment on the basis of the
4088	4088	4 then-current fair cash value.
4089	4089	5 (b) An incentive agreement shall be terminated if the
4090	4090	6 company fails to satisfy the minimum investment level or the
4091	4091	7 job creation requirements provided in this Division. If the
4092	4092	8 incentive agreement is terminated under this subsection, the
4093	4093	9 megaproject is subject to assessment on the basis of the
4094	4094	10 then-current fair cash value beginning in the tax year during
4095	4095	11 which the termination occurs.
4096	4096	12 (c) An incentive agreement shall terminate if, at any
4097	4097	13 time, the company no longer has the minimum level of new job
4098	4098	14 creation and investment as provided in this Division, without
4099	4099	15 regard to depreciation.
4100	4100	16 (35 ILCS 200/10-940 new)
4101	4101	17 Sec. 10-940. Megaproject applications; certification as a
4102	4102	18 megaproject and revocation of certification.
4103	4103	19 (a) The Department shall receive applications for
4104	4104	20 megaproject certificates under this Division in a form and
4105	4105	21 manner provided by the Department by rule. The Department
4106	4106	22 shall promptly notify the assessment officer when the
4107	4107	23 Department receives an application under this Section. The
4108	4108	24 Department's rules shall provide that an applicant may request
4109	4109	25 preliminary approval of the megaproject before the project
4110	4110
4111	4111
4112	4112
4113	4113
4114	4114
4115	4115	SB2857 - 114 - LRB103 36897 HLH 67010 b
4116	4116
4117	4117
4118	4118	SB2857- 115 -LRB103 36897 HLH 67010 b SB2857 - 115 - LRB103 36897 HLH 67010 b
4119	4119	SB2857 - 115 - LRB103 36897 HLH 67010 b
4120	4120	1 begins, before the applicant has entered into a fully executed
4121	4121	2 incentive agreement with the local municipality and local
4122	4122	3 taxing districts, or before the project has been placed in
4123	4123	4 service.
4124	4124	5 (b) An applicant for a megaproject certificate under this
4125	4125	6 Division must provide evidence to the Department of a fully
4126	4126	7 executed incentive agreement between the company, the local
4127	4127	8 municipality, and the local taxing districts as described in
4128	4128	9 this Division.
4129	4129	10 (c) An applicant for a megaproject certificate under this
4130	4130	11 Division must provide evidence to the Department of a fully
4131	4131	12 executed project labor agreement entered into with the
4132	4132	13 applicable local building trades council prior to the
4133	4133	14 commencement of any demolition, building construction, or
4134	4134	15 building renovation at the project. If the demolition,
4135	4135	16 building construction, or building renovation begins after the
4136	4136	17 application is approved, then the applicant must transmit a
4137	4137	18 copy of the fully executed project labor agreement to the
4138	4138	19 Department as soon as possible after the agreement is
4139	4139	20 executed.
4140	4140	21 (d) An applicant for a megaproject certificate under this
4141	4141	22 Division must provide evidence to the Department that the
4142	4142	23 company has established the goal of awarding 20% of the total
4143	4143	24 dollar amount of contracts awarded during each calendar year
4144	4144	25 by the company, that are related to the project, to
4145	4145	26 minority-owned businesses.
4146	4146
4147	4147
4148	4148
4149	4149
4150	4150
4151	4151	SB2857 - 115 - LRB103 36897 HLH 67010 b
4152	4152
4153	4153
4154	4154	SB2857- 116 -LRB103 36897 HLH 67010 b SB2857 - 116 - LRB103 36897 HLH 67010 b
4155	4155	SB2857 - 116 - LRB103 36897 HLH 67010 b
4156	4156	1 (d-1) An applicant for a megaproject certificate under
4157	4157	2 this Division must provide evidence to the Department that the
4158	4158	3 company has entered into a memorandum of understanding with
4159	4159	4 the Department committing to the creation of at least 100 new
4160	4160	5 full-time jobs that provide support to the business operations
4161	4161	6 of the megaproject and are located within the State of
4162	4162	7 Illinois.
4163	4163	8 (e) The Department shall approve an application for a
4164	4164	9 megaproject certificate if the Department finds that the
4165	4165	10 project meets the requirements of this Division.
4166	4166	11 (f) Upon approval of the application, the Department shall
4167	4167	12 issue a megaproject certificate to the applicant and transmit
4168	4168	13 a copy to the assessment officer. The certificate shall
4169	4169	14 identify the property on which the megaproject is located.
4170	4170	15 (g) For each calendar year following issuance of the
4171	4171	16 megaproject certificate, until the minimum investment and new
4172	4172	17 job creation requirements have been met and the megaproject
4173	4173	18 has been placed in service, the company shall deliver a report
4174	4174	19 to the Department on the status of construction or creation of
4175	4175	20 the megaproject and the amount of minimum investment made in
4176	4176	21 the megaproject during the preceding calendar year. If the
4177	4177	22 Department determines, in accordance with the Administrative
4178	4178	23 Review Law and the Illinois Administrative Procedure Act, that
4179	4179	24 a project for which a certificate has been issued has not met
4180	4180	25 the minimum investment and job creation requirements of this
4181	4181	26 Division within the investment period, the Department shall
4182	4182
4183	4183
4184	4184
4185	4185
4186	4186
4187	4187	SB2857 - 116 - LRB103 36897 HLH 67010 b
4188	4188
4189	4189
4190	4190	SB2857- 117 -LRB103 36897 HLH 67010 b SB2857 - 117 - LRB103 36897 HLH 67010 b
4191	4191	SB2857 - 117 - LRB103 36897 HLH 67010 b
4192	4192	1 revoke the certificate by written notice to the taxpayer of
4193	4193	2 record and transmit a copy of the revocation to the assessment
4194	4194	3 officer.
4195	4195	4 (h) If the local municipality notifies the Department that
4196	4196	5 the incentive agreement between the company, the local
4197	4197	6 municipality, and the local taxing districts has been
4198	4198	7 terminated, the Department shall revoke the certificate by
4199	4199	8 written notice to the taxpayer of record and transmit a copy of
4200	4200	9 the revocation to the assessment officer.
4201	4201	10 (35 ILCS 200/10-945 new)
4202	4202	11 Sec. 10-945. Computation of valuation.
4203	4203	12 (a) Upon receipt of the megaproject certificate from the
4204	4204	13 Department, the assessment officer shall determine the base
4205	4205	14 year valuation and shall make a notation on each statement of
4206	4206	15 assessment during the assessment period that the valuation of
4207	4207	16 the project is based upon the issuance of a megaproject
4208	4208	17 certificate.
4209	4209	18 (b) Upon revocation of a megaproject certificate, the
4210	4210	19 assessment officer shall compute the assessed valuation of the
4211	4211	20 project on the basis of the then-current fair cash value of the
4212	4212	21 property.
4213	4213	22 (35 ILCS 200/10-950 new)
4214	4214	23 Sec. 10-950. Transfers of interest in a megaproject;
4215	4215	24 sale-leaseback arrangement; requirements.
4216	4216
4217	4217
4218	4218
4219	4219
4220	4220
4221	4221	SB2857 - 117 - LRB103 36897 HLH 67010 b
4222	4222
4223	4223
4224	4224	SB2857- 118 -LRB103 36897 HLH 67010 b SB2857 - 118 - LRB103 36897 HLH 67010 b
4225	4225	SB2857 - 118 - LRB103 36897 HLH 67010 b
4226	4226	1 (a) Subject to the terms of the incentive agreement
4227	4227	2 between the company, the local municipality, and the local
4228	4228	3 municipality, ownership of or any interest in the megaproject
4229	4229	4 and any and all related project property, including, without
4230	4230	5 limitation, transfers of indirect beneficial interests and
4231	4231	6 equity interests in a company owning a megaproject, shall not
4232	4232	7 affect the assessment freeze or the validity of the
4233	4233	8 megaproject certificate issued under this Division.
4234	4234	9 Notwithstanding the provisions of this subsection, the
4235	4235	10 incentive agreement shall be a covenant running with the land.
4236	4236	11 (b) A company may enter into lending, financing, security,
4237	4237	12 leasing, or similar arrangements, or a succession of such
4238	4238	13 arrangements, with a financing entity concerning all or part
4239	4239	14 of a project including, without limitation, a sale-leaseback
4240	4240	15 arrangement, equipment lease, build-to-suit lease, synthetic
4241	4241	16 lease, nordic lease, defeased tax benefit, or transfer lease,
4242	4242	17 an assignment, sublease, or similar arrangement, or succession
4243	4243	18 of those arrangements, with one or more financing entities
4244	4244	19 concerning all or part of a project, regardless of the
4245	4245	20 identity of the income tax or fee owner of the megaproject.
4246	4246	21 Neither the original transfer to the financing entity nor the
4247	4247	22 later transfer from the financing entity back to the company,
4248	4248	23 pursuant to terms in the sale-leaseback agreement, shall
4249	4249	24 affect the assessment freeze or the validity of the
4250	4250	25 megaproject certificate issued under this Division, regardless
4251	4251	26 of whether the income tax basis is changed for income tax
4252	4252
4253	4253
4254	4254
4255	4255
4256	4256
4257	4257	SB2857 - 118 - LRB103 36897 HLH 67010 b
4258	4258
4259	4259
4260	4260	SB2857- 119 -LRB103 36897 HLH 67010 b SB2857 - 119 - LRB103 36897 HLH 67010 b
4261	4261	SB2857 - 119 - LRB103 36897 HLH 67010 b
4262	4262	1 purposes.
4263	4263	2 (c) The Department must receive notice of all transfers
4264	4264	3 undertaken with respect to other projects to effect a
4265	4265	4 financing. Notice shall be made in writing within 60 days
4266	4266	5 after the transfer, shall identify each transferee, and shall
4267	4267	6 contain other information required by the Department with the
4268	4268	7 appropriate returns. Failure to meet this notice requirement
4269	4269	8 does not adversely affect the assessment freeze.
4270	4270	9 (35 ILCS 200/10-955 new)
4271	4271	10 Sec. 10-955. Minimum investment by company affiliates. To
4272	4272	11 be eligible for the benefits of this Division, a company must
4273	4273	12 invest the minimum investment. Investments by company
4274	4274	13 affiliates during the investment period may be applied toward
4275	4275	14 the minimum investment under this Division regardless of
4276	4276	15 whether the company affiliate was part of the project. To
4277	4277	16 qualify for the assessment freeze, the minimum investment must
4278	4278	17 be made in connection with the megaproject.
4279	4279	18 (35 ILCS 200/10-960 new)
4280	4280	19 Sec. 10-960. Projects to be valued at fair cash value for
4281	4281	20 purposes of bonded indebtedness and limitations on property
4282	4282	21 tax extensions. Projects to which an assessment freeze applies
4283	4283	22 pursuant to this Division shall be valued at their fair cash
4284	4284	23 value for purposes of calculating a municipality's general
4285	4285	24 obligation bond limits and a taxing district's limitation on
4286	4286
4287	4287
4288	4288
4289	4289
4290	4290
4291	4291	SB2857 - 119 - LRB103 36897 HLH 67010 b
4292	4292
4293	4293
4294	4294	SB2857- 120 -LRB103 36897 HLH 67010 b SB2857 - 120 - LRB103 36897 HLH 67010 b
4295	4295	SB2857 - 120 - LRB103 36897 HLH 67010 b
4296	4296	1 tax extensions.
4297	4297	2 (35 ILCS 200/10-965 new)
4298	4298	3 Sec. 10-965. Abatements. Any taxing district, upon a
4299	4299	4 majority vote of its governing authority, may, after the
4300	4300	5 determination of the assessed valuation as set forth in this
4301	4301	6 Division, order the clerk of the appropriate municipality or
4302	4302	7 county to abate any portion of real property taxes otherwise
4303	4303	8 levied or extended by the taxing district on a megaproject.
4304	4304	9 (35 ILCS 200/10-970 new)
4305	4305	10 Sec. 10-970. Filing of returns, contracts, and other
4306	4306	11 information; due date of payments and returns.
4307	4307	12 (a) The company and the local municipality shall file
4308	4308	13 notices, reports, and other information as required by the
4309	4309	14 Department.
4310	4310	15 (b) Special payments are due at the same time as property
4311	4311	16 tax payments and property tax returns are due for the
4312	4312	17 megaproject property.
4313	4313	18 (c) Failure to make a timely special payment results in
4314	4314	19 the assessment of penalties as if the payment were a
4315	4315	20 delinquent property tax payment or return.
4316	4316	21 (d) Within 30 days after the date of execution of an
4317	4317	22 incentive agreement, a copy of the incentive agreement must be
4318	4318	23 filed with the Department, the county assessor, and the county
4319	4319	24 auditor for the county in which the megaproject is located.
4320	4320
4321	4321
4322	4322
4323	4323
4324	4324
4325	4325	SB2857 - 120 - LRB103 36897 HLH 67010 b
4326	4326
4327	4327
4328	4328	SB2857- 121 -LRB103 36897 HLH 67010 b SB2857 - 121 - LRB103 36897 HLH 67010 b
4329	4329	SB2857 - 121 - LRB103 36897 HLH 67010 b
4330	4330	1 (35 ILCS 200/10-980 new)
4331	4331	2 Sec. 10-980. Rules. The Department may issue rulings and
4332	4332	3 adopt rules as necessary to carry out the purpose of this
4333	4333	4 Division.
4334	4334	5 (35 ILCS 200/10-985 new)
4335	4335	6 Sec. 10-985. Prohibition on multiple credits, exemptions,
4336	4336	7 and freezes. An applicant for a megaproject certificate who
4337	4337	8 qualifies for an assessment freeze under this Section is not
4338	4338	9 entitled to any other property tax credits, exemptions, or
4339	4339	10 assessment freezes relating to the megaproject.
4340	4340	11 (35 ILCS 200/10-990 new)
4341	4341	12 Sec. 10-990. Sports stadiums. An applicant is not
4342	4342	13 eligible for a megaproject assessment freeze under this
4343	4343	14 Section for the construction or development of a sports
4344	4344	15 stadium unless, prior to the approval of the megaproject by
4345	4345	16 the Department, the General Assembly approves the megaproject
4346	4346	17 by joint resolution.
4347	4347	18 (35 ILCS 200/10-995 new)
4348	4348	19 Sec. 10-995. Tax Increment Financing districts. A project
4349	4349	20 that is located and operated in a Tax Increment Financing
4350	4350	21 (TIF) district or TIF designated area is not eligible for a
4351	4351	22 megaproject assessment freeze under this Section. The
4352	4352
4353	4353
4354	4354
4355	4355
4356	4356
4357	4357	SB2857 - 121 - LRB103 36897 HLH 67010 b
4358	4358
4359	4359
4360	4360	SB2857- 122 -LRB103 36897 HLH 67010 b SB2857 - 122 - LRB103 36897 HLH 67010 b
4361	4361	SB2857 - 122 - LRB103 36897 HLH 67010 b
4362	4362	1 agreement shall provide that the megaproject certificate is
4363	4363	2 void if an area on which the megaproject is located is
4364	4364	3 designated as a TIF district or TIF designated area.
4365	4365	4 (35 ILCS 200/10-1000 new)
4366	4366	5 Sec. 10-1000. Invalidity. If all or any part of this
4367	4367	6 Division is determined to be unconstitutional or otherwise
4368	4368	7 unenforceable by a court of competent jurisdiction, a company
4369	4369	8 has 180 days from the date of the determination to transfer the
4370	4370	9 megaproject's title to an authorized economic development
4371	4371	10 authority that qualifies for property tax assessment under
4372	4372	11 this Division or is exempt from property taxes.
4373	4373	12 Section 97. Severability. The provisions of this Act are
4374	4374	13 severable under Section 1.31 of the Statute on Statutes.
4375	4375	14 Section 99. Effective date. This Act takes effect June 1,
4376	4376	15 2024
4377	4377	.
4378	4378	SB2857- 123 -LRB103 36897 HLH 67010 b 1 INDEX 2 Statutes amended in order of appearance 3 35 ILCS 105/3-54 35 ILCS 110/3-55 35 ILCS 115/3-56 35 ILCS 120/2-57 35 ILCS 200/Art. 10 Div. 8 22 heading new9 35 ILCS 200/10-910 new10 35 ILCS 200/10-915 new11 35 ILCS 200/10-920 new12 35 ILCS 200/10-925 new13 35 ILCS 200/10-927 new14 35 ILCS 200/10-930 new15 35 ILCS 200/10-937 new16 35 ILCS 200/10-940 new17 35 ILCS 200/10-945 new18 35 ILCS 200/10-950 new19 35 ILCS 200/10-955 new20 35 ILCS 200/10-960 new21 35 ILCS 200/10-965 new22 35 ILCS 200/10-970 new23 35 ILCS 200/10-980 new24 35 ILCS 200/10-985 new25 35 ILCS 200/10-990 new SB2857- 124 -LRB103 36897 HLH 67010 b SB2857- 123 -LRB103 36897 HLH 67010 b SB2857 - 123 - LRB103 36897 HLH 67010 b 1 INDEX 2 Statutes amended in order of appearance 3 35 ILCS 105/3-5 4 35 ILCS 110/3-5 5 35 ILCS 115/3-5 6 35 ILCS 120/2-5 7 35 ILCS 200/Art. 10 Div. 8 22 heading new 9 35 ILCS 200/10-910 new 10 35 ILCS 200/10-915 new 11 35 ILCS 200/10-920 new 12 35 ILCS 200/10-925 new 13 35 ILCS 200/10-927 new 14 35 ILCS 200/10-930 new 15 35 ILCS 200/10-937 new 16 35 ILCS 200/10-940 new 17 35 ILCS 200/10-945 new 18 35 ILCS 200/10-950 new 19 35 ILCS 200/10-955 new 20 35 ILCS 200/10-960 new 21 35 ILCS 200/10-965 new 22 35 ILCS 200/10-970 new 23 35 ILCS 200/10-980 new 24 35 ILCS 200/10-985 new 25 35 ILCS 200/10-990 new SB2857- 124 -LRB103 36897 HLH 67010 b SB2857 - 124 - LRB103 36897 HLH 67010 b
4379	4379	SB2857- 123 -LRB103 36897 HLH 67010 b SB2857 - 123 - LRB103 36897 HLH 67010 b
4380	4380	SB2857 - 123 - LRB103 36897 HLH 67010 b
4381	4381	1 INDEX
4382	4382	2 Statutes amended in order of appearance
4383	4383	3 35 ILCS 105/3-5
4384	4384	4 35 ILCS 110/3-5
4385	4385	5 35 ILCS 115/3-5
4386	4386	6 35 ILCS 120/2-5
4387	4387	7 35 ILCS 200/Art. 10 Div.
4388	4388	8 22 heading new
4389	4389	9 35 ILCS 200/10-910 new
4390	4390	10 35 ILCS 200/10-915 new
4391	4391	11 35 ILCS 200/10-920 new
4392	4392	12 35 ILCS 200/10-925 new
4393	4393	13 35 ILCS 200/10-927 new
4394	4394	14 35 ILCS 200/10-930 new
4395	4395	15 35 ILCS 200/10-937 new
4396	4396	16 35 ILCS 200/10-940 new
4397	4397	17 35 ILCS 200/10-945 new
4398	4398	18 35 ILCS 200/10-950 new
4399	4399	19 35 ILCS 200/10-955 new
4400	4400	20 35 ILCS 200/10-960 new
4401	4401	21 35 ILCS 200/10-965 new
4402	4402	22 35 ILCS 200/10-970 new
4403	4403	23 35 ILCS 200/10-980 new
4404	4404	24 35 ILCS 200/10-985 new
4405	4405	25 35 ILCS 200/10-990 new
4406	4406	SB2857- 124 -LRB103 36897 HLH 67010 b SB2857 - 124 - LRB103 36897 HLH 67010 b
4407	4407	SB2857 - 124 - LRB103 36897 HLH 67010 b
4408	4408
4409	4409
4410	4410
4411	4411
4412	4412
4413	4413	SB2857 - 122 - LRB103 36897 HLH 67010 b
4414	4414
4415	4415
4416	4416
4417	4417	SB2857- 123 -LRB103 36897 HLH 67010 b SB2857 - 123 - LRB103 36897 HLH 67010 b
4418	4418	SB2857 - 123 - LRB103 36897 HLH 67010 b
4419	4419	1 INDEX
4420	4420	2 Statutes amended in order of appearance
4421	4421	3 35 ILCS 105/3-5
4422	4422	4 35 ILCS 110/3-5
4423	4423	5 35 ILCS 115/3-5
4424	4424	6 35 ILCS 120/2-5
4425	4425	7 35 ILCS 200/Art. 10 Div.
4426	4426	8 22 heading new
4427	4427	9 35 ILCS 200/10-910 new
4428	4428	10 35 ILCS 200/10-915 new
4429	4429	11 35 ILCS 200/10-920 new
4430	4430	12 35 ILCS 200/10-925 new
4431	4431	13 35 ILCS 200/10-927 new
4432	4432	14 35 ILCS 200/10-930 new
4433	4433	15 35 ILCS 200/10-937 new
4434	4434	16 35 ILCS 200/10-940 new
4435	4435	17 35 ILCS 200/10-945 new
4436	4436	18 35 ILCS 200/10-950 new
4437	4437	19 35 ILCS 200/10-955 new
4438	4438	20 35 ILCS 200/10-960 new
4439	4439	21 35 ILCS 200/10-965 new
4440	4440	22 35 ILCS 200/10-970 new
4441	4441	23 35 ILCS 200/10-980 new
4442	4442	24 35 ILCS 200/10-985 new
4443	4443	25 35 ILCS 200/10-990 new
4444	4444
4445	4445
4446	4446
4447	4447
4448	4448
4449	4449	SB2857 - 123 - LRB103 36897 HLH 67010 b
4450	4450
4451	4451
4452	4452	SB2857- 124 -LRB103 36897 HLH 67010 b SB2857 - 124 - LRB103 36897 HLH 67010 b
4453	4453	SB2857 - 124 - LRB103 36897 HLH 67010 b
4454	4454
4455	4455
4456	4456
4457	4457
4458	4458
4459	4459	SB2857 - 124 - LRB103 36897 HLH 67010 b