Illinois 2025-2026 Regular Session

Illinois House Bill HB1639 Compare Versions

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

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1639 Introduced , by Rep. Amy L. Grant SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that certain supplies purchased by a day care center are exempt from the taxes imposed under those Acts. Effective immediately. LRB104 07437 HLH 17478 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1639 Introduced , by Rep. Amy L. Grant SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5 35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that certain supplies purchased by a day care center are exempt from the taxes imposed under those Acts. Effective immediately. LRB104 07437 HLH 17478 b LRB104 07437 HLH 17478 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1639 Introduced , by Rep. Amy L. Grant SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5 35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5
4	4	35 ILCS 105/3-5
5	5	35 ILCS 110/3-5
6	6	35 ILCS 115/3-5
7	7	35 ILCS 120/2-5
8	8	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that certain supplies purchased by a day care center are exempt from the taxes imposed under those Acts. Effective immediately.
9	9	LRB104 07437 HLH 17478 b LRB104 07437 HLH 17478 b
10	10	LRB104 07437 HLH 17478 b
11	11	A BILL FOR
12	12	HB1639LRB104 07437 HLH 17478 b HB1639 LRB104 07437 HLH 17478 b
13	13	HB1639 LRB104 07437 HLH 17478 b
14	14	1 AN ACT concerning revenue.
15	15	2 Be it enacted by the People of the State of Illinois,
16	16	3 represented in the General Assembly:
17	17	4 Section 5. The Use Tax Act is amended by changing Section
18	18	5 3-5 as follows:
19	19	6 (35 ILCS 105/3-5)
20	20	7 Sec. 3-5. Exemptions. Use, which, on and after January 1,
21	21	8 2025, includes use by a lessee, of the following tangible
22	22	9 personal property is exempt from the tax imposed by this Act:
23	23	10 (1) Personal property purchased from a corporation,
24	24	11 society, association, foundation, institution, or
25	25	12 organization, other than a limited liability company, that is
26	26	13 organized and operated as a not-for-profit service enterprise
27	27	14 for the benefit of persons 65 years of age or older if the
28	28	15 personal property was not purchased by the enterprise for the
29	29	16 purpose of resale by the enterprise.
30	30	17 (2) Personal property purchased by a not-for-profit
31	31	18 Illinois county fair association for use in conducting,
32	32	19 operating, or promoting the county fair.
33	33	20 (3) Personal property purchased by a not-for-profit arts
34	34	21 or cultural organization that establishes, by proof required
35	35	22 by the Department by rule, that it has received an exemption
36	36	23 under Section 501(c)(3) of the Internal Revenue Code and that
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40	40	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1639 Introduced , by Rep. Amy L. Grant SYNOPSIS AS INTRODUCED:
41	41	35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5 35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5
42	42	35 ILCS 105/3-5
43	43	35 ILCS 110/3-5
44	44	35 ILCS 115/3-5
45	45	35 ILCS 120/2-5
46	46	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that certain supplies purchased by a day care center are exempt from the taxes imposed under those Acts. Effective immediately.
47	47	LRB104 07437 HLH 17478 b LRB104 07437 HLH 17478 b
48	48	LRB104 07437 HLH 17478 b
49	49	A BILL FOR
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55	55	35 ILCS 105/3-5
56	56	35 ILCS 110/3-5
57	57	35 ILCS 115/3-5
58	58	35 ILCS 120/2-5
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77	77	1 is organized and operated primarily for the presentation or
78	78	2 support of arts or cultural programming, activities, or
79	79	3 services. These organizations include, but are not limited to,
80	80	4 music and dramatic arts organizations such as symphony
81	81	5 orchestras and theatrical groups, arts and cultural service
82	82	6 organizations, local arts councils, visual arts organizations,
83	83	7 and media arts organizations. On and after July 1, 2001 (the
84	84	8 effective date of Public Act 92-35), however, an entity
85	85	9 otherwise eligible for this exemption shall not make tax-free
86	86	10 purchases unless it has an active identification number issued
87	87	11 by the Department.
88	88	12 (4) Except as otherwise provided in this Act, personal
89	89	13 property purchased by a governmental body, by a corporation,
90	90	14 society, association, foundation, or institution organized and
91	91	15 operated exclusively for charitable, religious, or educational
92	92	16 purposes, or by a not-for-profit corporation, society,
93	93	17 association, foundation, institution, or organization that has
94	94	18 no compensated officers or employees and that is organized and
95	95	19 operated primarily for the recreation of persons 55 years of
96	96	20 age or older. A limited liability company may qualify for the
97	97	21 exemption under this paragraph only if the limited liability
98	98	22 company is organized and operated exclusively for educational
99	99	23 purposes. On and after July 1, 1987, however, no entity
100	100	24 otherwise eligible for this exemption shall make tax-free
101	101	25 purchases unless it has an active exemption identification
102	102	26 number issued by the Department.
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113	113	1 (5) Until July 1, 2003, a passenger car that is a
114	114	2 replacement vehicle to the extent that the purchase price of
115	115	3 the car is subject to the Replacement Vehicle Tax.
116	116	4 (6) Until July 1, 2003 and beginning again on September 1,
117	117	5 2004 through August 30, 2014, graphic arts machinery and
118	118	6 equipment, including repair and replacement parts, both new
119	119	7 and used, and including that manufactured on special order,
120	120	8 certified by the purchaser to be used primarily for graphic
121	121	9 arts production, and including machinery and equipment
122	122	10 purchased for lease. Equipment includes chemicals or chemicals
123	123	11 acting as catalysts but only if the chemicals or chemicals
124	124	12 acting as catalysts effect a direct and immediate change upon
125	125	13 a graphic arts product. Beginning on July 1, 2017, graphic
126	126	14 arts machinery and equipment is included in the manufacturing
127	127	15 and assembling machinery and equipment exemption under
128	128	16 paragraph (18).
129	129	17 (7) Farm chemicals.
130	130	18 (8) Legal tender, currency, medallions, or gold or silver
131	131	19 coinage issued by the State of Illinois, the government of the
132	132	20 United States of America, or the government of any foreign
133	133	21 country, and bullion.
134	134	22 (9) Personal property purchased from a teacher-sponsored
135	135	23 student organization affiliated with an elementary or
136	136	24 secondary school located in Illinois.
137	137	25 (10) A motor vehicle that is used for automobile renting,
138	138	26 as defined in the Automobile Renting Occupation and Use Tax
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149	149	1 Act.
150	150	2 (11) Farm machinery and equipment, both new and used,
151	151	3 including that manufactured on special order, certified by the
152	152	4 purchaser to be used primarily for production agriculture or
153	153	5 State or federal agricultural programs, including individual
154	154	6 replacement parts for the machinery and equipment, including
155	155	7 machinery and equipment purchased for lease, and including
156	156	8 implements of husbandry defined in Section 1-130 of the
157	157	9 Illinois Vehicle Code, farm machinery and agricultural
158	158	10 chemical and fertilizer spreaders, and nurse wagons required
159	159	11 to be registered under Section 3-809 of the Illinois Vehicle
160	160	12 Code, but excluding other motor vehicles required to be
161	161	13 registered under the Illinois Vehicle Code. Horticultural
162	162	14 polyhouses or hoop houses used for propagating, growing, or
163	163	15 overwintering plants shall be considered farm machinery and
164	164	16 equipment under this item (11). Agricultural chemical tender
165	165	17 tanks and dry boxes shall include units sold separately from a
166	166	18 motor vehicle required to be licensed and units sold mounted
167	167	19 on a motor vehicle required to be licensed if the selling price
168	168	20 of the tender is separately stated.
169	169	21 Farm machinery and equipment shall include precision
170	170	22 farming equipment that is installed or purchased to be
171	171	23 installed on farm machinery and equipment, including, but not
172	172	24 limited to, tractors, harvesters, sprayers, planters, seeders,
173	173	25 or spreaders. Precision farming equipment includes, but is not
174	174	26 limited to, soil testing sensors, computers, monitors,
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185	185	1 software, global positioning and mapping systems, and other
186	186	2 such equipment.
187	187	3 Farm machinery and equipment also includes computers,
188	188	4 sensors, software, and related equipment used primarily in the
189	189	5 computer-assisted operation of production agriculture
190	190	6 facilities, equipment, and activities such as, but not limited
191	191	7 to, the collection, monitoring, and correlation of animal and
192	192	8 crop data for the purpose of formulating animal diets and
193	193	9 agricultural chemicals.
194	194	10 Beginning on January 1, 2024, farm machinery and equipment
195	195	11 also includes electrical power generation equipment used
196	196	12 primarily for production agriculture.
197	197	13 This item (11) is exempt from the provisions of Section
198	198	14 3-90.
199	199	15 (12) Until June 30, 2013, fuel and petroleum products sold
200	200	16 to or used by an air common carrier, certified by the carrier
201	201	17 to be used for consumption, shipment, or storage in the
202	202	18 conduct of its business as an air common carrier, for a flight
203	203	19 destined for or returning from a location or locations outside
204	204	20 the United States without regard to previous or subsequent
205	205	21 domestic stopovers.
206	206	22 Beginning July 1, 2013, fuel and petroleum products sold
207	207	23 to or used by an air carrier, certified by the carrier to be
208	208	24 used for consumption, shipment, or storage in the conduct of
209	209	25 its business as an air common carrier, for a flight that (i) is
210	210	26 engaged in foreign trade or is engaged in trade between the
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221	221	1 United States and any of its possessions and (ii) transports
222	222	2 at least one individual or package for hire from the city of
223	223	3 origination to the city of final destination on the same
224	224	4 aircraft, without regard to a change in the flight number of
225	225	5 that aircraft.
226	226	6 (13) Proceeds of mandatory service charges separately
227	227	7 stated on customers' bills for the purchase and consumption of
228	228	8 food and beverages purchased at retail from a retailer, to the
229	229	9 extent that the proceeds of the service charge are in fact
230	230	10 turned over as tips or as a substitute for tips to the
231	231	11 employees who participate directly in preparing, serving,
232	232	12 hosting or cleaning up the food or beverage function with
233	233	13 respect to which the service charge is imposed.
234	234	14 (14) Until July 1, 2003, oil field exploration, drilling,
235	235	15 and production equipment, including (i) rigs and parts of
236	236	16 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
237	237	17 pipe and tubular goods, including casing and drill strings,
238	238	18 (iii) pumps and pump-jack units, (iv) storage tanks and flow
239	239	19 lines, (v) any individual replacement part for oil field
240	240	20 exploration, drilling, and production equipment, and (vi)
241	241	21 machinery and equipment purchased for lease; but excluding
242	242	22 motor vehicles required to be registered under the Illinois
243	243	23 Vehicle Code.
244	244	24 (15) Photoprocessing machinery and equipment, including
245	245	25 repair and replacement parts, both new and used, including
246	246	26 that manufactured on special order, certified by the purchaser
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257	257	1 to be used primarily for photoprocessing, and including
258	258	2 photoprocessing machinery and equipment purchased for lease.
259	259	3 (16) Until July 1, 2028, coal and aggregate exploration,
260	260	4 mining, off-highway hauling, processing, maintenance, and
261	261	5 reclamation equipment, including replacement parts and
262	262	6 equipment, and including equipment purchased for lease, but
263	263	7 excluding motor vehicles required to be registered under the
264	264	8 Illinois Vehicle Code. The changes made to this Section by
265	265	9 Public Act 97-767 apply on and after July 1, 2003, but no claim
266	266	10 for credit or refund is allowed on or after August 16, 2013
267	267	11 (the effective date of Public Act 98-456) for such taxes paid
268	268	12 during the period beginning July 1, 2003 and ending on August
269	269	13 16, 2013 (the effective date of Public Act 98-456).
270	270	14 (17) Until July 1, 2003, distillation machinery and
271	271	15 equipment, sold as a unit or kit, assembled or installed by the
272	272	16 retailer, certified by the user to be used only for the
273	273	17 production of ethyl alcohol that will be used for consumption
274	274	18 as motor fuel or as a component of motor fuel for the personal
275	275	19 use of the user, and not subject to sale or resale.
276	276	20 (18) Manufacturing and assembling machinery and equipment
277	277	21 used primarily in the process of manufacturing or assembling
278	278	22 tangible personal property for wholesale or retail sale or
279	279	23 lease, whether that sale or lease is made directly by the
280	280	24 manufacturer or by some other person, whether the materials
281	281	25 used in the process are owned by the manufacturer or some other
282	282	26 person, or whether that sale or lease is made apart from or as
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293	293	1 an incident to the seller's engaging in the service occupation
294	294	2 of producing machines, tools, dies, jigs, patterns, gauges, or
295	295	3 other similar items of no commercial value on special order
296	296	4 for a particular purchaser. The exemption provided by this
297	297	5 paragraph (18) includes production related tangible personal
298	298	6 property, as defined in Section 3-50, purchased on or after
299	299	7 July 1, 2019. The exemption provided by this paragraph (18)
300	300	8 does not include machinery and equipment used in (i) the
301	301	9 generation of electricity for wholesale or retail sale; (ii)
302	302	10 the generation or treatment of natural or artificial gas for
303	303	11 wholesale or retail sale that is delivered to customers
304	304	12 through pipes, pipelines, or mains; or (iii) the treatment of
305	305	13 water for wholesale or retail sale that is delivered to
306	306	14 customers through pipes, pipelines, or mains. The provisions
307	307	15 of Public Act 98-583 are declaratory of existing law as to the
308	308	16 meaning and scope of this exemption. Beginning on July 1,
309	309	17 2017, the exemption provided by this paragraph (18) includes,
310	310	18 but is not limited to, graphic arts machinery and equipment,
311	311	19 as defined in paragraph (6) of this Section.
312	312	20 (19) Personal property delivered to a purchaser or
313	313	21 purchaser's donee inside Illinois when the purchase order for
314	314	22 that personal property was received by a florist located
315	315	23 outside Illinois who has a florist located inside Illinois
316	316	24 deliver the personal property.
317	317	25 (20) Semen used for artificial insemination of livestock
318	318	26 for direct agricultural production.
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329	329	1 (21) Horses, or interests in horses, registered with and
330	330	2 meeting the requirements of any of the Arabian Horse Club
331	331	3 Registry of America, Appaloosa Horse Club, American Quarter
332	332	4 Horse Association, United States Trotting Association, or
333	333	5 Jockey Club, as appropriate, used for purposes of breeding or
334	334	6 racing for prizes. This item (21) is exempt from the
335	335	7 provisions of Section 3-90, and the exemption provided for
336	336	8 under this item (21) applies for all periods beginning May 30,
337	337	9 1995, but no claim for credit or refund is allowed on or after
338	338	10 January 1, 2008 for such taxes paid during the period
339	339	11 beginning May 30, 2000 and ending on January 1, 2008.
340	340	12 (22) Computers and communications equipment utilized for
341	341	13 any hospital purpose and equipment used in the diagnosis,
342	342	14 analysis, or treatment of hospital patients purchased by a
343	343	15 lessor who leases the equipment, under a lease of one year or
344	344	16 longer executed or in effect at the time the lessor would
345	345	17 otherwise be subject to the tax imposed by this Act, to a
346	346	18 hospital that has been issued an active tax exemption
347	347	19 identification number by the Department under Section 1g of
348	348	20 the Retailers' Occupation Tax Act. If the equipment is leased
349	349	21 in a manner that does not qualify for this exemption or is used
350	350	22 in any other non-exempt manner, the lessor shall be liable for
351	351	23 the tax imposed under this Act or the Service Use Tax Act, as
352	352	24 the case may be, based on the fair market value of the property
353	353	25 at the time the non-qualifying use occurs. No lessor shall
354	354	26 collect or attempt to collect an amount (however designated)
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365	365	1 that purports to reimburse that lessor for the tax imposed by
366	366	2 this Act or the Service Use Tax Act, as the case may be, if the
367	367	3 tax has not been paid by the lessor. If a lessor improperly
368	368	4 collects any such amount from the lessee, the lessee shall
369	369	5 have a legal right to claim a refund of that amount from the
370	370	6 lessor. If, however, that amount is not refunded to the lessee
371	371	7 for any reason, the lessor is liable to pay that amount to the
372	372	8 Department.
373	373	9 (23) Personal property purchased by a lessor who leases
374	374	10 the property, under a lease of one year or longer executed or
375	375	11 in effect at the time the lessor would otherwise be subject to
376	376	12 the tax imposed by this Act, to a governmental body that has
377	377	13 been issued an active sales tax exemption identification
378	378	14 number by the Department under Section 1g of the Retailers'
379	379	15 Occupation Tax Act. If the property is leased in a manner that
380	380	16 does not qualify for this exemption or used in any other
381	381	17 non-exempt manner, the lessor shall be liable for the tax
382	382	18 imposed under this Act or the Service Use Tax Act, as the case
383	383	19 may be, based on the fair market value of the property at the
384	384	20 time the non-qualifying use occurs. No lessor shall collect or
385	385	21 attempt to collect an amount (however designated) that
386	386	22 purports to reimburse that lessor for the tax imposed by this
387	387	23 Act or the Service Use Tax Act, as the case may be, if the tax
388	388	24 has not been paid by the lessor. If a lessor improperly
389	389	25 collects any such amount from the lessee, the lessee shall
390	390	26 have a legal right to claim a refund of that amount from the
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401	401	1 lessor. If, however, that amount is not refunded to the lessee
402	402	2 for any reason, the lessor is liable to pay that amount to the
403	403	3 Department.
404	404	4 (24) Beginning with taxable years ending on or after
405	405	5 December 31, 1995 and ending with taxable years ending on or
406	406	6 before December 31, 2004, personal property that is donated
407	407	7 for disaster relief to be used in a State or federally declared
408	408	8 disaster area in Illinois or bordering Illinois by a
409	409	9 manufacturer or retailer that is registered in this State to a
410	410	10 corporation, society, association, foundation, or institution
411	411	11 that has been issued a sales tax exemption identification
412	412	12 number by the Department that assists victims of the disaster
413	413	13 who reside within the declared disaster area.
414	414	14 (25) Beginning with taxable years ending on or after
415	415	15 December 31, 1995 and ending with taxable years ending on or
416	416	16 before December 31, 2004, personal property that is used in
417	417	17 the performance of infrastructure repairs in this State,
418	418	18 including, but not limited to, municipal roads and streets,
419	419	19 access roads, bridges, sidewalks, waste disposal systems,
420	420	20 water and sewer line extensions, water distribution and
421	421	21 purification facilities, storm water drainage and retention
422	422	22 facilities, and sewage treatment facilities, resulting from a
423	423	23 State or federally declared disaster in Illinois or bordering
424	424	24 Illinois when such repairs are initiated on facilities located
425	425	25 in the declared disaster area within 6 months after the
426	426	26 disaster.
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437	437	1 (26) Beginning July 1, 1999, game or game birds purchased
438	438	2 at a "game breeding and hunting preserve area" as that term is
439	439	3 used in the Wildlife Code. This paragraph is exempt from the
440	440	4 provisions of Section 3-90.
441	441	5 (27) A motor vehicle, as that term is defined in Section
442	442	6 1-146 of the Illinois Vehicle Code, that is donated to a
443	443	7 corporation, limited liability company, society, association,
444	444	8 foundation, or institution that is determined by the
445	445	9 Department to be organized and operated exclusively for
446	446	10 educational purposes. For purposes of this exemption, "a
447	447	11 corporation, limited liability company, society, association,
448	448	12 foundation, or institution organized and operated exclusively
449	449	13 for educational purposes" means all tax-supported public
450	450	14 schools, private schools that offer systematic instruction in
451	451	15 useful branches of learning by methods common to public
452	452	16 schools and that compare favorably in their scope and
453	453	17 intensity with the course of study presented in tax-supported
454	454	18 schools, and vocational or technical schools or institutes
455	455	19 organized and operated exclusively to provide a course of
456	456	20 study of not less than 6 weeks duration and designed to prepare
457	457	21 individuals to follow a trade or to pursue a manual,
458	458	22 technical, mechanical, industrial, business, or commercial
459	459	23 occupation.
460	460	24 (28) Beginning January 1, 2000, personal property,
461	461	25 including food, purchased through fundraising events for the
462	462	26 benefit of a public or private elementary or secondary school,
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473	473	1 a group of those schools, or one or more school districts if
474	474	2 the events are sponsored by an entity recognized by the school
475	475	3 district that consists primarily of volunteers and includes
476	476	4 parents and teachers of the school children. This paragraph
477	477	5 does not apply to fundraising events (i) for the benefit of
478	478	6 private home instruction or (ii) for which the fundraising
479	479	7 entity purchases the personal property sold at the events from
480	480	8 another individual or entity that sold the property for the
481	481	9 purpose of resale by the fundraising entity and that profits
482	482	10 from the sale to the fundraising entity. This paragraph is
483	483	11 exempt from the provisions of Section 3-90.
484	484	12 (29) Beginning January 1, 2000 and through December 31,
485	485	13 2001, new or used automatic vending machines that prepare and
486	486	14 serve hot food and beverages, including coffee, soup, and
487	487	15 other items, and replacement parts for these machines.
488	488	16 Beginning January 1, 2002 and through June 30, 2003, machines
489	489	17 and parts for machines used in commercial, coin-operated
490	490	18 amusement and vending business if a use or occupation tax is
491	491	19 paid on the gross receipts derived from the use of the
492	492	20 commercial, coin-operated amusement and vending machines. This
493	493	21 paragraph is exempt from the provisions of Section 3-90.
494	494	22 (30) Beginning January 1, 2001 and through June 30, 2016,
495	495	23 food for human consumption that is to be consumed off the
496	496	24 premises where it is sold (other than alcoholic beverages,
497	497	25 soft drinks, and food that has been prepared for immediate
498	498	26 consumption) and prescription and nonprescription medicines,
499	499
500	500
501	501
502	502
503	503
504	504	HB1639 - 13 - LRB104 07437 HLH 17478 b
505	505
506	506
507	507	HB1639- 14 -LRB104 07437 HLH 17478 b HB1639 - 14 - LRB104 07437 HLH 17478 b
508	508	HB1639 - 14 - LRB104 07437 HLH 17478 b
509	509	1 drugs, medical appliances, and insulin, urine testing
510	510	2 materials, syringes, and needles used by diabetics, for human
511	511	3 use, when purchased for use by a person receiving medical
512	512	4 assistance under Article V of the Illinois Public Aid Code who
513	513	5 resides in a licensed long-term care facility, as defined in
514	514	6 the Nursing Home Care Act, or in a licensed facility as defined
515	515	7 in the ID/DD Community Care Act, the MC/DD Act, or the
516	516	8 Specialized Mental Health Rehabilitation Act of 2013.
517	517	9 (31) Beginning on August 2, 2001 (the effective date of
518	518	10 Public Act 92-227), computers and communications equipment
519	519	11 utilized for any hospital purpose and equipment used in the
520	520	12 diagnosis, analysis, or treatment of hospital patients
521	521	13 purchased by a lessor who leases the equipment, under a lease
522	522	14 of one year or longer executed or in effect at the time the
523	523	15 lessor would otherwise be subject to the tax imposed by this
524	524	16 Act, to a hospital that has been issued an active tax exemption
525	525	17 identification number by the Department under Section 1g of
526	526	18 the Retailers' Occupation Tax Act. If the equipment is leased
527	527	19 in a manner that does not qualify for this exemption or is used
528	528	20 in any other nonexempt manner, the lessor shall be liable for
529	529	21 the tax imposed under this Act or the Service Use Tax Act, as
530	530	22 the case may be, based on the fair market value of the property
531	531	23 at the time the nonqualifying use occurs. No lessor shall
532	532	24 collect or attempt to collect an amount (however designated)
533	533	25 that purports to reimburse that lessor for the tax imposed by
534	534	26 this Act or the Service Use Tax Act, as the case may be, if the
535	535
536	536
537	537
538	538
539	539
540	540	HB1639 - 14 - LRB104 07437 HLH 17478 b
541	541
542	542
543	543	HB1639- 15 -LRB104 07437 HLH 17478 b HB1639 - 15 - LRB104 07437 HLH 17478 b
544	544	HB1639 - 15 - LRB104 07437 HLH 17478 b
545	545	1 tax has not been paid by the lessor. If a lessor improperly
546	546	2 collects any such amount from the lessee, the lessee shall
547	547	3 have a legal right to claim a refund of that amount from the
548	548	4 lessor. If, however, that amount is not refunded to the lessee
549	549	5 for any reason, the lessor is liable to pay that amount to the
550	550	6 Department. This paragraph is exempt from the provisions of
551	551	7 Section 3-90.
552	552	8 (32) Beginning on August 2, 2001 (the effective date of
553	553	9 Public Act 92-227), personal property purchased by a lessor
554	554	10 who leases the property, under a lease of one year or longer
555	555	11 executed or in effect at the time the lessor would otherwise be
556	556	12 subject to the tax imposed by this Act, to a governmental body
557	557	13 that has been issued an active sales tax exemption
558	558	14 identification number by the Department under Section 1g of
559	559	15 the Retailers' Occupation Tax Act. If the property is leased
560	560	16 in a manner that does not qualify for this exemption or used in
561	561	17 any other nonexempt manner, the lessor shall be liable for the
562	562	18 tax imposed under this Act or the Service Use Tax Act, as the
563	563	19 case may be, based on the fair market value of the property at
564	564	20 the time the nonqualifying use occurs. No lessor shall collect
565	565	21 or attempt to collect an amount (however designated) that
566	566	22 purports to reimburse that lessor for the tax imposed by this
567	567	23 Act or the Service Use Tax Act, as the case may be, if the tax
568	568	24 has not been paid by the lessor. If a lessor improperly
569	569	25 collects any such amount from the lessee, the lessee shall
570	570	26 have a legal right to claim a refund of that amount from the
571	571
572	572
573	573
574	574
575	575
576	576	HB1639 - 15 - LRB104 07437 HLH 17478 b
577	577
578	578
579	579	HB1639- 16 -LRB104 07437 HLH 17478 b HB1639 - 16 - LRB104 07437 HLH 17478 b
580	580	HB1639 - 16 - LRB104 07437 HLH 17478 b
581	581	1 lessor. If, however, that amount is not refunded to the lessee
582	582	2 for any reason, the lessor is liable to pay that amount to the
583	583	3 Department. This paragraph is exempt from the provisions of
584	584	4 Section 3-90.
585	585	5 (33) On and after July 1, 2003 and through June 30, 2004,
586	586	6 the use in this State of motor vehicles of the second division
587	587	7 with a gross vehicle weight in excess of 8,000 pounds and that
588	588	8 are subject to the commercial distribution fee imposed under
589	589	9 Section 3-815.1 of the Illinois Vehicle Code. Beginning on
590	590	10 July 1, 2004 and through June 30, 2005, the use in this State
591	591	11 of motor vehicles of the second division: (i) with a gross
592	592	12 vehicle weight rating in excess of 8,000 pounds; (ii) that are
593	593	13 subject to the commercial distribution fee imposed under
594	594	14 Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
595	595	15 are primarily used for commercial purposes. Through June 30,
596	596	16 2005, this exemption applies to repair and replacement parts
597	597	17 added after the initial purchase of such a motor vehicle if
598	598	18 that motor vehicle is used in a manner that would qualify for
599	599	19 the rolling stock exemption otherwise provided for in this
600	600	20 Act. For purposes of this paragraph, the term "used for
601	601	21 commercial purposes" means the transportation of persons or
602	602	22 property in furtherance of any commercial or industrial
603	603	23 enterprise, whether for-hire or not.
604	604	24 (34) Beginning January 1, 2008, tangible personal property
605	605	25 used in the construction or maintenance of a community water
606	606	26 supply, as defined under Section 3.145 of the Environmental
607	607
608	608
609	609
610	610
611	611
612	612	HB1639 - 16 - LRB104 07437 HLH 17478 b
613	613
614	614
615	615	HB1639- 17 -LRB104 07437 HLH 17478 b HB1639 - 17 - LRB104 07437 HLH 17478 b
616	616	HB1639 - 17 - LRB104 07437 HLH 17478 b
617	617	1 Protection Act, that is operated by a not-for-profit
618	618	2 corporation that holds a valid water supply permit issued
619	619	3 under Title IV of the Environmental Protection Act. This
620	620	4 paragraph is exempt from the provisions of Section 3-90.
621	621	5 (35) Beginning January 1, 2010 and continuing through
622	622	6 December 31, 2029, materials, parts, equipment, components,
623	623	7 and furnishings incorporated into or upon an aircraft as part
624	624	8 of the modification, refurbishment, completion, replacement,
625	625	9 repair, or maintenance of the aircraft. This exemption
626	626	10 includes consumable supplies used in the modification,
627	627	11 refurbishment, completion, replacement, repair, and
628	628	12 maintenance of aircraft. However, until January 1, 2024, this
629	629	13 exemption excludes any materials, parts, equipment,
630	630	14 components, and consumable supplies used in the modification,
631	631	15 replacement, repair, and maintenance of aircraft engines or
632	632	16 power plants, whether such engines or power plants are
633	633	17 installed or uninstalled upon any such aircraft. "Consumable
634	634	18 supplies" include, but are not limited to, adhesive, tape,
635	635	19 sandpaper, general purpose lubricants, cleaning solution,
636	636	20 latex gloves, and protective films.
637	637	21 Beginning January 1, 2010 and continuing through December
638	638	22 31, 2023, this exemption applies only to the use of qualifying
639	639	23 tangible personal property by persons who modify, refurbish,
640	640	24 complete, repair, replace, or maintain aircraft and who (i)
641	641	25 hold an Air Agency Certificate and are empowered to operate an
642	642	26 approved repair station by the Federal Aviation
643	643
644	644
645	645
646	646
647	647
648	648	HB1639 - 17 - LRB104 07437 HLH 17478 b
649	649
650	650
651	651	HB1639- 18 -LRB104 07437 HLH 17478 b HB1639 - 18 - LRB104 07437 HLH 17478 b
652	652	HB1639 - 18 - LRB104 07437 HLH 17478 b
653	653	1 Administration, (ii) have a Class IV Rating, and (iii) conduct
654	654	2 operations in accordance with Part 145 of the Federal Aviation
655	655	3 Regulations. From January 1, 2024 through December 31, 2029,
656	656	4 this exemption applies only to the use of qualifying tangible
657	657	5 personal property by: (A) persons who modify, refurbish,
658	658	6 complete, repair, replace, or maintain aircraft and who (i)
659	659	7 hold an Air Agency Certificate and are empowered to operate an
660	660	8 approved repair station by the Federal Aviation
661	661	9 Administration, (ii) have a Class IV Rating, and (iii) conduct
662	662	10 operations in accordance with Part 145 of the Federal Aviation
663	663	11 Regulations; and (B) persons who engage in the modification,
664	664	12 replacement, repair, and maintenance of aircraft engines or
665	665	13 power plants without regard to whether or not those persons
666	666	14 meet the qualifications of item (A).
667	667	15 The exemption does not include aircraft operated by a
668	668	16 commercial air carrier providing scheduled passenger air
669	669	17 service pursuant to authority issued under Part 121 or Part
670	670	18 129 of the Federal Aviation Regulations. The changes made to
671	671	19 this paragraph (35) by Public Act 98-534 are declarative of
672	672	20 existing law. It is the intent of the General Assembly that the
673	673	21 exemption under this paragraph (35) applies continuously from
674	674	22 January 1, 2010 through December 31, 2024; however, no claim
675	675	23 for credit or refund is allowed for taxes paid as a result of
676	676	24 the disallowance of this exemption on or after January 1, 2015
677	677	25 and prior to February 5, 2020 (the effective date of Public Act
678	678	26 101-629).
679	679
680	680
681	681
682	682
683	683
684	684	HB1639 - 18 - LRB104 07437 HLH 17478 b
685	685
686	686
687	687	HB1639- 19 -LRB104 07437 HLH 17478 b HB1639 - 19 - LRB104 07437 HLH 17478 b
688	688	HB1639 - 19 - LRB104 07437 HLH 17478 b
689	689	1 (36) Tangible personal property purchased by a
690	690	2 public-facilities corporation, as described in Section
691	691	3 11-65-10 of the Illinois Municipal Code, for purposes of
692	692	4 constructing or furnishing a municipal convention hall, but
693	693	5 only if the legal title to the municipal convention hall is
694	694	6 transferred to the municipality without any further
695	695	7 consideration by or on behalf of the municipality at the time
696	696	8 of the completion of the municipal convention hall or upon the
697	697	9 retirement or redemption of any bonds or other debt
698	698	10 instruments issued by the public-facilities corporation in
699	699	11 connection with the development of the municipal convention
700	700	12 hall. This exemption includes existing public-facilities
701	701	13 corporations as provided in Section 11-65-25 of the Illinois
702	702	14 Municipal Code. This paragraph is exempt from the provisions
703	703	15 of Section 3-90.
704	704	16 (37) Beginning January 1, 2017 and through December 31,
705	705	17 2026, menstrual pads, tampons, and menstrual cups.
706	706	18 (38) Merchandise that is subject to the Rental Purchase
707	707	19 Agreement Occupation and Use Tax. The purchaser must certify
708	708	20 that the item is purchased to be rented subject to a
709	709	21 rental-purchase agreement, as defined in the Rental-Purchase
710	710	22 Agreement Act, and provide proof of registration under the
711	711	23 Rental Purchase Agreement Occupation and Use Tax Act. This
712	712	24 paragraph is exempt from the provisions of Section 3-90.
713	713	25 (39) Tangible personal property purchased by a purchaser
714	714	26 who is exempt from the tax imposed by this Act by operation of
715	715
716	716
717	717
718	718
719	719
720	720	HB1639 - 19 - LRB104 07437 HLH 17478 b
721	721
722	722
723	723	HB1639- 20 -LRB104 07437 HLH 17478 b HB1639 - 20 - LRB104 07437 HLH 17478 b
724	724	HB1639 - 20 - LRB104 07437 HLH 17478 b
725	725	1 federal law. This paragraph is exempt from the provisions of
726	726	2 Section 3-90.
727	727	3 (40) Qualified tangible personal property used in the
728	728	4 construction or operation of a data center that has been
729	729	5 granted a certificate of exemption by the Department of
730	730	6 Commerce and Economic Opportunity, whether that tangible
731	731	7 personal property is purchased by the owner, operator, or
732	732	8 tenant of the data center or by a contractor or subcontractor
733	733	9 of the owner, operator, or tenant. Data centers that would
734	734	10 have qualified for a certificate of exemption prior to January
735	735	11 1, 2020 had Public Act 101-31 been in effect may apply for and
736	736	12 obtain an exemption for subsequent purchases of computer
737	737	13 equipment or enabling software purchased or leased to upgrade,
738	738	14 supplement, or replace computer equipment or enabling software
739	739	15 purchased or leased in the original investment that would have
740	740	16 qualified.
741	741	17 The Department of Commerce and Economic Opportunity shall
742	742	18 grant a certificate of exemption under this item (40) to
743	743	19 qualified data centers as defined by Section 605-1025 of the
744	744	20 Department of Commerce and Economic Opportunity Law of the
745	745	21 Civil Administrative Code of Illinois.
746	746	22 For the purposes of this item (40):
747	747	23 "Data center" means a building or a series of
748	748	24 buildings rehabilitated or constructed to house working
749	749	25 servers in one physical location or multiple sites within
750	750	26 the State of Illinois.
751	751
752	752
753	753
754	754
755	755
756	756	HB1639 - 20 - LRB104 07437 HLH 17478 b
757	757
758	758
759	759	HB1639- 21 -LRB104 07437 HLH 17478 b HB1639 - 21 - LRB104 07437 HLH 17478 b
760	760	HB1639 - 21 - LRB104 07437 HLH 17478 b
761	761	1 "Qualified tangible personal property" means:
762	762	2 electrical systems and equipment; climate control and
763	763	3 chilling equipment and systems; mechanical systems and
764	764	4 equipment; monitoring and secure systems; emergency
765	765	5 generators; hardware; computers; servers; data storage
766	766	6 devices; network connectivity equipment; racks; cabinets;
767	767	7 telecommunications cabling infrastructure; raised floor
768	768	8 systems; peripheral components or systems; software;
769	769	9 mechanical, electrical, or plumbing systems; battery
770	770	10 systems; cooling systems and towers; temperature control
771	771	11 systems; other cabling; and other data center
772	772	12 infrastructure equipment and systems necessary to operate
773	773	13 qualified tangible personal property, including fixtures;
774	774	14 and component parts of any of the foregoing, including
775	775	15 installation, maintenance, repair, refurbishment, and
776	776	16 replacement of qualified tangible personal property to
777	777	17 generate, transform, transmit, distribute, or manage
778	778	18 electricity necessary to operate qualified tangible
779	779	19 personal property; and all other tangible personal
780	780	20 property that is essential to the operations of a computer
781	781	21 data center. The term "qualified tangible personal
782	782	22 property" also includes building materials physically
783	783	23 incorporated into the qualifying data center. To document
784	784	24 the exemption allowed under this Section, the retailer
785	785	25 must obtain from the purchaser a copy of the certificate
786	786	26 of eligibility issued by the Department of Commerce and
787	787
788	788
789	789
790	790
791	791
792	792	HB1639 - 21 - LRB104 07437 HLH 17478 b
793	793
794	794
795	795	HB1639- 22 -LRB104 07437 HLH 17478 b HB1639 - 22 - LRB104 07437 HLH 17478 b
796	796	HB1639 - 22 - LRB104 07437 HLH 17478 b
797	797	1 Economic Opportunity.
798	798	2 This item (40) is exempt from the provisions of Section
799	799	3 3-90.
800	800	4 (41) Beginning July 1, 2022, breast pumps, breast pump
801	801	5 collection and storage supplies, and breast pump kits. This
802	802	6 item (41) is exempt from the provisions of Section 3-90. As
803	803	7 used in this item (41):
804	804	8 "Breast pump" means an electrically controlled or
805	805	9 manually controlled pump device designed or marketed to be
806	806	10 used to express milk from a human breast during lactation,
807	807	11 including the pump device and any battery, AC adapter, or
808	808	12 other power supply unit that is used to power the pump
809	809	13 device and is packaged and sold with the pump device at the
810	810	14 time of sale.
811	811	15 "Breast pump collection and storage supplies" means
812	812	16 items of tangible personal property designed or marketed
813	813	17 to be used in conjunction with a breast pump to collect
814	814	18 milk expressed from a human breast and to store collected
815	815	19 milk until it is ready for consumption.
816	816	20 "Breast pump collection and storage supplies"
817	817	21 includes, but is not limited to: breast shields and breast
818	818	22 shield connectors; breast pump tubes and tubing adapters;
819	819	23 breast pump valves and membranes; backflow protectors and
820	820	24 backflow protector adaptors; bottles and bottle caps
821	821	25 specific to the operation of the breast pump; and breast
822	822	26 milk storage bags.
823	823
824	824
825	825
826	826
827	827
828	828	HB1639 - 22 - LRB104 07437 HLH 17478 b
829	829
830	830
831	831	HB1639- 23 -LRB104 07437 HLH 17478 b HB1639 - 23 - LRB104 07437 HLH 17478 b
832	832	HB1639 - 23 - LRB104 07437 HLH 17478 b
833	833	1 "Breast pump collection and storage supplies" does not
834	834	2 include: (1) bottles and bottle caps not specific to the
835	835	3 operation of the breast pump; (2) breast pump travel bags
836	836	4 and other similar carrying accessories, including ice
837	837	5 packs, labels, and other similar products; (3) breast pump
838	838	6 cleaning supplies; (4) nursing bras, bra pads, breast
839	839	7 shells, and other similar products; and (5) creams,
840	840	8 ointments, and other similar products that relieve
841	841	9 breastfeeding-related symptoms or conditions of the
842	842	10 breasts or nipples, unless sold as part of a breast pump
843	843	11 kit that is pre-packaged by the breast pump manufacturer
844	844	12 or distributor.
845	845	13 "Breast pump kit" means a kit that: (1) contains no
846	846	14 more than a breast pump, breast pump collection and
847	847	15 storage supplies, a rechargeable battery for operating the
848	848	16 breast pump, a breastmilk cooler, bottle stands, ice
849	849	17 packs, and a breast pump carrying case; and (2) is
850	850	18 pre-packaged as a breast pump kit by the breast pump
851	851	19 manufacturer or distributor.
852	852	20 (42) Tangible personal property sold by or on behalf of
853	853	21 the State Treasurer pursuant to the Revised Uniform Unclaimed
854	854	22 Property Act. This item (42) is exempt from the provisions of
855	855	23 Section 3-90.
856	856	24 (43) Beginning on January 1, 2024, tangible personal
857	857	25 property purchased by an active duty member of the armed
858	858	26 forces of the United States who presents valid military
859	859
860	860
861	861
862	862
863	863
864	864	HB1639 - 23 - LRB104 07437 HLH 17478 b
865	865
866	866
867	867	HB1639- 24 -LRB104 07437 HLH 17478 b HB1639 - 24 - LRB104 07437 HLH 17478 b
868	868	HB1639 - 24 - LRB104 07437 HLH 17478 b
869	869	1 identification and purchases the property using a form of
870	870	2 payment where the federal government is the payor. The member
871	871	3 of the armed forces must complete, at the point of sale, a form
872	872	4 prescribed by the Department of Revenue documenting that the
873	873	5 transaction is eligible for the exemption under this
874	874	6 paragraph. Retailers must keep the form as documentation of
875	875	7 the exemption in their records for a period of not less than 6
876	876	8 years. "Armed forces of the United States" means the United
877	877	9 States Army, Navy, Air Force, Space Force, Marine Corps, or
878	878	10 Coast Guard. This paragraph is exempt from the provisions of
879	879	11 Section 3-90.
880	880	12 (44) Beginning July 1, 2024, home-delivered meals provided
881	881	13 to Medicare or Medicaid recipients when payment is made by an
882	882	14 intermediary, such as a Medicare Administrative Contractor, a
883	883	15 Managed Care Organization, or a Medicare Advantage
884	884	16 Organization, pursuant to a government contract. This item
885	885	17 (44) is exempt from the provisions of Section 3-90.
886	886	18 (45) (44) Beginning on January 1, 2026, as further defined
887	887	19 in Section 3-10, food for human consumption that is to be
888	888	20 consumed off the premises where it is sold (other than
889	889	21 alcoholic beverages, food consisting of or infused with adult
890	890	22 use cannabis, soft drinks, candy, and food that has been
891	891	23 prepared for immediate consumption). This item (45) (44) is
892	892	24 exempt from the provisions of Section 3-90.
893	893	25 (46) (44) Use by the lessee of the following leased
894	894	26 tangible personal property:
895	895
896	896
897	897
898	898
899	899
900	900	HB1639 - 24 - LRB104 07437 HLH 17478 b
901	901
902	902
903	903	HB1639- 25 -LRB104 07437 HLH 17478 b HB1639 - 25 - LRB104 07437 HLH 17478 b
904	904	HB1639 - 25 - LRB104 07437 HLH 17478 b
905	905	1 (1) software transferred subject to a license that
906	906	2 meets the following requirements:
907	907	3 (A) it is evidenced by a written agreement signed
908	908	4 by the licensor and the customer;
909	909	5 (i) an electronic agreement in which the
910	910	6 customer accepts the license by means of an
911	911	7 electronic signature that is verifiable and can be
912	912	8 authenticated and is attached to or made part of
913	913	9 the license will comply with this requirement;
914	914	10 (ii) a license agreement in which the customer
915	915	11 electronically accepts the terms by clicking "I
916	916	12 agree" does not comply with this requirement;
917	917	13 (B) it restricts the customer's duplication and
918	918	14 use of the software;
919	919	15 (C) it prohibits the customer from licensing,
920	920	16 sublicensing, or transferring the software to a third
921	921	17 party (except to a related party) without the
922	922	18 permission and continued control of the licensor;
923	923	19 (D) the licensor has a policy of providing another
924	924	20 copy at minimal or no charge if the customer loses or
925	925	21 damages the software, or of permitting the licensee to
926	926	22 make and keep an archival copy, and such policy is
927	927	23 either stated in the license agreement, supported by
928	928	24 the licensor's books and records, or supported by a
929	929	25 notarized statement made under penalties of perjury by
930	930	26 the licensor; and
931	931
932	932
933	933
934	934
935	935
936	936	HB1639 - 25 - LRB104 07437 HLH 17478 b
937	937
938	938
939	939	HB1639- 26 -LRB104 07437 HLH 17478 b HB1639 - 26 - LRB104 07437 HLH 17478 b
940	940	HB1639 - 26 - LRB104 07437 HLH 17478 b
941	941	1 (E) the customer must destroy or return all copies
942	942	2 of the software to the licensor at the end of the
943	943	3 license period; this provision is deemed to be met, in
944	944	4 the case of a perpetual license, without being set
945	945	5 forth in the license agreement; and
946	946	6 (2) property that is subject to a tax on lease
947	947	7 receipts imposed by a home rule unit of local government
948	948	8 if the ordinance imposing that tax was adopted prior to
949	949	9 January 1, 2023.
950	950	10 (47) On and after January 1, 2026, essential supplies
951	951	11 purchased by a day care center that has been granted a
952	952	12 certificate of exemption by the Department. The Department of
953	953	13 Children and Family Services may share information with the
954	954	14 Department of Revenue for the purpose of administering the
955	955	15 provisions of this exemption. This item (47) is exempt from
956	956	16 the provisions of Section 3-90.
957	957	17 As used in this item (47):
958	958	18 "Day care center" has the meaning given to that term in
959	959	19 Section 2.09 of the Child Care Act of 1969.
960	960	20 "Essential supplies" means items designated, by rule, as
961	961	21 essential supplies by the Department of Children and Family
962	962	22 Services, including, but not limited to: food and beverages to
963	963	23 be consumed by a child as a snack or meal at the day care
964	964	24 center, including, but not limited to, fruits and vegetables,
965	965	25 whole grains, proteins, water, and reduced fat or skim milk;
966	966	26 diapers; wipes; first aid kits; smoke detectors; nap mats; and
967	967
968	968
969	969
970	970
971	971
972	972	HB1639 - 26 - LRB104 07437 HLH 17478 b
973	973
974	974
975	975	HB1639- 27 -LRB104 07437 HLH 17478 b HB1639 - 27 - LRB104 07437 HLH 17478 b
976	976	HB1639 - 27 - LRB104 07437 HLH 17478 b
977	977	1 soap and hand sanitizer.
978	978	2 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
979	979	3 Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
980	980	4 eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
981	981	5 Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
982	982	6 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
983	983	7 103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
984	984	8 7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; revised
985	985	9 11-26-24.)
986	986	10 Section 10. The Service Use Tax Act is amended by changing
987	987	11 Section 3-5 as follows:
988	988	12 (35 ILCS 110/3-5)
989	989	13 Sec. 3-5. Exemptions. Use of the following tangible
990	990	14 personal property is exempt from the tax imposed by this Act:
991	991	15 (1) Personal property purchased from a corporation,
992	992	16 society, association, foundation, institution, or
993	993	17 organization, other than a limited liability company, that is
994	994	18 organized and operated as a not-for-profit service enterprise
995	995	19 for the benefit of persons 65 years of age or older if the
996	996	20 personal property was not purchased by the enterprise for the
997	997	21 purpose of resale by the enterprise.
998	998	22 (2) Personal property purchased by a non-profit Illinois
999	999	23 county fair association for use in conducting, operating, or
1000	1000	24 promoting the county fair.
1001	1001
1002	1002
1003	1003
1004	1004
1005	1005
1006	1006	HB1639 - 27 - LRB104 07437 HLH 17478 b
1007	1007
1008	1008
1009	1009	HB1639- 28 -LRB104 07437 HLH 17478 b HB1639 - 28 - LRB104 07437 HLH 17478 b
1010	1010	HB1639 - 28 - LRB104 07437 HLH 17478 b
1011	1011	1 (3) Personal property purchased by a not-for-profit arts
1012	1012	2 or cultural organization that establishes, by proof required
1013	1013	3 by the Department by rule, that it has received an exemption
1014	1014	4 under Section 501(c)(3) of the Internal Revenue Code and that
1015	1015	5 is organized and operated primarily for the presentation or
1016	1016	6 support of arts or cultural programming, activities, or
1017	1017	7 services. These organizations include, but are not limited to,
1018	1018	8 music and dramatic arts organizations such as symphony
1019	1019	9 orchestras and theatrical groups, arts and cultural service
1020	1020	10 organizations, local arts councils, visual arts organizations,
1021	1021	11 and media arts organizations. On and after July 1, 2001 (the
1022	1022	12 effective date of Public Act 92-35), however, an entity
1023	1023	13 otherwise eligible for this exemption shall not make tax-free
1024	1024	14 purchases unless it has an active identification number issued
1025	1025	15 by the Department.
1026	1026	16 (4) Legal tender, currency, medallions, or gold or silver
1027	1027	17 coinage issued by the State of Illinois, the government of the
1028	1028	18 United States of America, or the government of any foreign
1029	1029	19 country, and bullion.
1030	1030	20 (5) Until July 1, 2003 and beginning again on September 1,
1031	1031	21 2004 through August 30, 2014, graphic arts machinery and
1032	1032	22 equipment, including repair and replacement parts, both new
1033	1033	23 and used, and including that manufactured on special order or
1034	1034	24 purchased for lease, certified by the purchaser to be used
1035	1035	25 primarily for graphic arts production. Equipment includes
1036	1036	26 chemicals or chemicals acting as catalysts but only if the
1037	1037
1038	1038
1039	1039
1040	1040
1041	1041
1042	1042	HB1639 - 28 - LRB104 07437 HLH 17478 b
1043	1043
1044	1044
1045	1045	HB1639- 29 -LRB104 07437 HLH 17478 b HB1639 - 29 - LRB104 07437 HLH 17478 b
1046	1046	HB1639 - 29 - LRB104 07437 HLH 17478 b
1047	1047	1 chemicals or chemicals acting as catalysts effect a direct and
1048	1048	2 immediate change upon a graphic arts product. Beginning on
1049	1049	3 July 1, 2017, graphic arts machinery and equipment is included
1050	1050	4 in the manufacturing and assembling machinery and equipment
1051	1051	5 exemption under Section 2 of this Act.
1052	1052	6 (6) Personal property purchased from a teacher-sponsored
1053	1053	7 student organization affiliated with an elementary or
1054	1054	8 secondary school located in Illinois.
1055	1055	9 (7) Farm machinery and equipment, both new and used,
1056	1056	10 including that manufactured on special order, certified by the
1057	1057	11 purchaser to be used primarily for production agriculture or
1058	1058	12 State or federal agricultural programs, including individual
1059	1059	13 replacement parts for the machinery and equipment, including
1060	1060	14 machinery and equipment purchased for lease, and including
1061	1061	15 implements of husbandry defined in Section 1-130 of the
1062	1062	16 Illinois Vehicle Code, farm machinery and agricultural
1063	1063	17 chemical and fertilizer spreaders, and nurse wagons required
1064	1064	18 to be registered under Section 3-809 of the Illinois Vehicle
1065	1065	19 Code, but excluding other motor vehicles required to be
1066	1066	20 registered under the Illinois Vehicle Code. Horticultural
1067	1067	21 polyhouses or hoop houses used for propagating, growing, or
1068	1068	22 overwintering plants shall be considered farm machinery and
1069	1069	23 equipment under this item (7). Agricultural chemical tender
1070	1070	24 tanks and dry boxes shall include units sold separately from a
1071	1071	25 motor vehicle required to be licensed and units sold mounted
1072	1072	26 on a motor vehicle required to be licensed if the selling price
1073	1073
1074	1074
1075	1075
1076	1076
1077	1077
1078	1078	HB1639 - 29 - LRB104 07437 HLH 17478 b
1079	1079
1080	1080
1081	1081	HB1639- 30 -LRB104 07437 HLH 17478 b HB1639 - 30 - LRB104 07437 HLH 17478 b
1082	1082	HB1639 - 30 - LRB104 07437 HLH 17478 b
1083	1083	1 of the tender is separately stated.
1084	1084	2 Farm machinery and equipment shall include precision
1085	1085	3 farming equipment that is installed or purchased to be
1086	1086	4 installed on farm machinery and equipment, including, but not
1087	1087	5 limited to, tractors, harvesters, sprayers, planters, seeders,
1088	1088	6 or spreaders. Precision farming equipment includes, but is not
1089	1089	7 limited to, soil testing sensors, computers, monitors,
1090	1090	8 software, global positioning and mapping systems, and other
1091	1091	9 such equipment.
1092	1092	10 Farm machinery and equipment also includes computers,
1093	1093	11 sensors, software, and related equipment used primarily in the
1094	1094	12 computer-assisted operation of production agriculture
1095	1095	13 facilities, equipment, and activities such as, but not limited
1096	1096	14 to, the collection, monitoring, and correlation of animal and
1097	1097	15 crop data for the purpose of formulating animal diets and
1098	1098	16 agricultural chemicals.
1099	1099	17 Beginning on January 1, 2024, farm machinery and equipment
1100	1100	18 also includes electrical power generation equipment used
1101	1101	19 primarily for production agriculture.
1102	1102	20 This item (7) is exempt from the provisions of Section
1103	1103	21 3-75.
1104	1104	22 (8) Until June 30, 2013, fuel and petroleum products sold
1105	1105	23 to or used by an air common carrier, certified by the carrier
1106	1106	24 to be used for consumption, shipment, or storage in the
1107	1107	25 conduct of its business as an air common carrier, for a flight
1108	1108	26 destined for or returning from a location or locations outside
1109	1109
1110	1110
1111	1111
1112	1112
1113	1113
1114	1114	HB1639 - 30 - LRB104 07437 HLH 17478 b
1115	1115
1116	1116
1117	1117	HB1639- 31 -LRB104 07437 HLH 17478 b HB1639 - 31 - LRB104 07437 HLH 17478 b
1118	1118	HB1639 - 31 - LRB104 07437 HLH 17478 b
1119	1119	1 the United States without regard to previous or subsequent
1120	1120	2 domestic stopovers.
1121	1121	3 Beginning July 1, 2013, fuel and petroleum products sold
1122	1122	4 to or used by an air carrier, certified by the carrier to be
1123	1123	5 used for consumption, shipment, or storage in the conduct of
1124	1124	6 its business as an air common carrier, for a flight that (i) is
1125	1125	7 engaged in foreign trade or is engaged in trade between the
1126	1126	8 United States and any of its possessions and (ii) transports
1127	1127	9 at least one individual or package for hire from the city of
1128	1128	10 origination to the city of final destination on the same
1129	1129	11 aircraft, without regard to a change in the flight number of
1130	1130	12 that aircraft.
1131	1131	13 (9) Proceeds of mandatory service charges separately
1132	1132	14 stated on customers' bills for the purchase and consumption of
1133	1133	15 food and beverages acquired as an incident to the purchase of a
1134	1134	16 service from a serviceman, to the extent that the proceeds of
1135	1135	17 the service charge are in fact turned over as tips or as a
1136	1136	18 substitute for tips to the employees who participate directly
1137	1137	19 in preparing, serving, hosting or cleaning up the food or
1138	1138	20 beverage function with respect to which the service charge is
1139	1139	21 imposed.
1140	1140	22 (10) Until July 1, 2003, oil field exploration, drilling,
1141	1141	23 and production equipment, including (i) rigs and parts of
1142	1142	24 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1143	1143	25 pipe and tubular goods, including casing and drill strings,
1144	1144	26 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1145	1145
1146	1146
1147	1147
1148	1148
1149	1149
1150	1150	HB1639 - 31 - LRB104 07437 HLH 17478 b
1151	1151
1152	1152
1153	1153	HB1639- 32 -LRB104 07437 HLH 17478 b HB1639 - 32 - LRB104 07437 HLH 17478 b
1154	1154	HB1639 - 32 - LRB104 07437 HLH 17478 b
1155	1155	1 lines, (v) any individual replacement part for oil field
1156	1156	2 exploration, drilling, and production equipment, and (vi)
1157	1157	3 machinery and equipment purchased for lease; but excluding
1158	1158	4 motor vehicles required to be registered under the Illinois
1159	1159	5 Vehicle Code.
1160	1160	6 (11) Proceeds from the sale of photoprocessing machinery
1161	1161	7 and equipment, including repair and replacement parts, both
1162	1162	8 new and used, including that manufactured on special order,
1163	1163	9 certified by the purchaser to be used primarily for
1164	1164	10 photoprocessing, and including photoprocessing machinery and
1165	1165	11 equipment purchased for lease.
1166	1166	12 (12) Until July 1, 2028, coal and aggregate exploration,
1167	1167	13 mining, off-highway hauling, processing, maintenance, and
1168	1168	14 reclamation equipment, including replacement parts and
1169	1169	15 equipment, and including equipment purchased for lease, but
1170	1170	16 excluding motor vehicles required to be registered under the
1171	1171	17 Illinois Vehicle Code. The changes made to this Section by
1172	1172	18 Public Act 97-767 apply on and after July 1, 2003, but no claim
1173	1173	19 for credit or refund is allowed on or after August 16, 2013
1174	1174	20 (the effective date of Public Act 98-456) for such taxes paid
1175	1175	21 during the period beginning July 1, 2003 and ending on August
1176	1176	22 16, 2013 (the effective date of Public Act 98-456).
1177	1177	23 (13) Semen used for artificial insemination of livestock
1178	1178	24 for direct agricultural production.
1179	1179	25 (14) Horses, or interests in horses, registered with and
1180	1180	26 meeting the requirements of any of the Arabian Horse Club
1181	1181
1182	1182
1183	1183
1184	1184
1185	1185
1186	1186	HB1639 - 32 - LRB104 07437 HLH 17478 b
1187	1187
1188	1188
1189	1189	HB1639- 33 -LRB104 07437 HLH 17478 b HB1639 - 33 - LRB104 07437 HLH 17478 b
1190	1190	HB1639 - 33 - LRB104 07437 HLH 17478 b
1191	1191	1 Registry of America, Appaloosa Horse Club, American Quarter
1192	1192	2 Horse Association, United States Trotting Association, or
1193	1193	3 Jockey Club, as appropriate, used for purposes of breeding or
1194	1194	4 racing for prizes. This item (14) is exempt from the
1195	1195	5 provisions of Section 3-75, and the exemption provided for
1196	1196	6 under this item (14) applies for all periods beginning May 30,
1197	1197	7 1995, but no claim for credit or refund is allowed on or after
1198	1198	8 January 1, 2008 (the effective date of Public Act 95-88) for
1199	1199	9 such taxes paid during the period beginning May 30, 2000 and
1200	1200	10 ending on January 1, 2008 (the effective date of Public Act
1201	1201	11 95-88).
1202	1202	12 (15) Computers and communications equipment utilized for
1203	1203	13 any hospital purpose and equipment used in the diagnosis,
1204	1204	14 analysis, or treatment of hospital patients purchased by a
1205	1205	15 lessor who leases the equipment, under a lease of one year or
1206	1206	16 longer executed or in effect at the time the lessor would
1207	1207	17 otherwise be subject to the tax imposed by this Act, to a
1208	1208	18 hospital that has been issued an active tax exemption
1209	1209	19 identification number by the Department under Section 1g of
1210	1210	20 the Retailers' Occupation Tax Act. If the equipment is leased
1211	1211	21 in a manner that does not qualify for this exemption or is used
1212	1212	22 in any other non-exempt manner, the lessor shall be liable for
1213	1213	23 the tax imposed under this Act or the Use Tax Act, as the case
1214	1214	24 may be, based on the fair market value of the property at the
1215	1215	25 time the non-qualifying use occurs. No lessor shall collect or
1216	1216	26 attempt to collect an amount (however designated) that
1217	1217
1218	1218
1219	1219
1220	1220
1221	1221
1222	1222	HB1639 - 33 - LRB104 07437 HLH 17478 b
1223	1223
1224	1224
1225	1225	HB1639- 34 -LRB104 07437 HLH 17478 b HB1639 - 34 - LRB104 07437 HLH 17478 b
1226	1226	HB1639 - 34 - LRB104 07437 HLH 17478 b
1227	1227	1 purports to reimburse that lessor for the tax imposed by this
1228	1228	2 Act or the Use Tax Act, as the case may be, if the tax has not
1229	1229	3 been paid by the lessor. If a lessor improperly collects any
1230	1230	4 such amount from the lessee, the lessee shall have a legal
1231	1231	5 right to claim a refund of that amount from the lessor. If,
1232	1232	6 however, that amount is not refunded to the lessee for any
1233	1233	7 reason, the lessor is liable to pay that amount to the
1234	1234	8 Department.
1235	1235	9 (16) Personal property purchased by a lessor who leases
1236	1236	10 the property, under a lease of one year or longer executed or
1237	1237	11 in effect at the time the lessor would otherwise be subject to
1238	1238	12 the tax imposed by this Act, to a governmental body that has
1239	1239	13 been issued an active tax exemption identification number by
1240	1240	14 the Department under Section 1g of the Retailers' Occupation
1241	1241	15 Tax Act. If the property is leased in a manner that does not
1242	1242	16 qualify for this exemption or is used in any other non-exempt
1243	1243	17 manner, the lessor shall be liable for the tax imposed under
1244	1244	18 this Act or the Use Tax Act, as the case may be, based on the
1245	1245	19 fair market value of the property at the time the
1246	1246	20 non-qualifying use occurs. No lessor shall collect or attempt
1247	1247	21 to collect an amount (however designated) that purports to
1248	1248	22 reimburse that lessor for the tax imposed by this Act or the
1249	1249	23 Use Tax Act, as the case may be, if the tax has not been paid
1250	1250	24 by the lessor. If a lessor improperly collects any such amount
1251	1251	25 from the lessee, the lessee shall have a legal right to claim a
1252	1252	26 refund of that amount from the lessor. If, however, that
1253	1253
1254	1254
1255	1255
1256	1256
1257	1257
1258	1258	HB1639 - 34 - LRB104 07437 HLH 17478 b
1259	1259
1260	1260
1261	1261	HB1639- 35 -LRB104 07437 HLH 17478 b HB1639 - 35 - LRB104 07437 HLH 17478 b
1262	1262	HB1639 - 35 - LRB104 07437 HLH 17478 b
1263	1263	1 amount is not refunded to the lessee for any reason, the lessor
1264	1264	2 is liable to pay that amount to the Department.
1265	1265	3 (17) Beginning with taxable years ending on or after
1266	1266	4 December 31, 1995 and ending with taxable years ending on or
1267	1267	5 before December 31, 2004, personal property that is donated
1268	1268	6 for disaster relief to be used in a State or federally declared
1269	1269	7 disaster area in Illinois or bordering Illinois by a
1270	1270	8 manufacturer or retailer that is registered in this State to a
1271	1271	9 corporation, society, association, foundation, or institution
1272	1272	10 that has been issued a sales tax exemption identification
1273	1273	11 number by the Department that assists victims of the disaster
1274	1274	12 who reside within the declared disaster area.
1275	1275	13 (18) Beginning with taxable years ending on or after
1276	1276	14 December 31, 1995 and ending with taxable years ending on or
1277	1277	15 before December 31, 2004, personal property that is used in
1278	1278	16 the performance of infrastructure repairs in this State,
1279	1279	17 including, but not limited to, municipal roads and streets,
1280	1280	18 access roads, bridges, sidewalks, waste disposal systems,
1281	1281	19 water and sewer line extensions, water distribution and
1282	1282	20 purification facilities, storm water drainage and retention
1283	1283	21 facilities, and sewage treatment facilities, resulting from a
1284	1284	22 State or federally declared disaster in Illinois or bordering
1285	1285	23 Illinois when such repairs are initiated on facilities located
1286	1286	24 in the declared disaster area within 6 months after the
1287	1287	25 disaster.
1288	1288	26 (19) Beginning July 1, 1999, game or game birds purchased
1289	1289
1290	1290
1291	1291
1292	1292
1293	1293
1294	1294	HB1639 - 35 - LRB104 07437 HLH 17478 b
1295	1295
1296	1296
1297	1297	HB1639- 36 -LRB104 07437 HLH 17478 b HB1639 - 36 - LRB104 07437 HLH 17478 b
1298	1298	HB1639 - 36 - LRB104 07437 HLH 17478 b
1299	1299	1 at a "game breeding and hunting preserve area" as that term is
1300	1300	2 used in the Wildlife Code. This paragraph is exempt from the
1301	1301	3 provisions of Section 3-75.
1302	1302	4 (20) A motor vehicle, as that term is defined in Section
1303	1303	5 1-146 of the Illinois Vehicle Code, that is donated to a
1304	1304	6 corporation, limited liability company, society, association,
1305	1305	7 foundation, or institution that is determined by the
1306	1306	8 Department to be organized and operated exclusively for
1307	1307	9 educational purposes. For purposes of this exemption, "a
1308	1308	10 corporation, limited liability company, society, association,
1309	1309	11 foundation, or institution organized and operated exclusively
1310	1310	12 for educational purposes" means all tax-supported public
1311	1311	13 schools, private schools that offer systematic instruction in
1312	1312	14 useful branches of learning by methods common to public
1313	1313	15 schools and that compare favorably in their scope and
1314	1314	16 intensity with the course of study presented in tax-supported
1315	1315	17 schools, and vocational or technical schools or institutes
1316	1316	18 organized and operated exclusively to provide a course of
1317	1317	19 study of not less than 6 weeks duration and designed to prepare
1318	1318	20 individuals to follow a trade or to pursue a manual,
1319	1319	21 technical, mechanical, industrial, business, or commercial
1320	1320	22 occupation.
1321	1321	23 (21) Beginning January 1, 2000, personal property,
1322	1322	24 including food, purchased through fundraising events for the
1323	1323	25 benefit of a public or private elementary or secondary school,
1324	1324	26 a group of those schools, or one or more school districts if
1325	1325
1326	1326
1327	1327
1328	1328
1329	1329
1330	1330	HB1639 - 36 - LRB104 07437 HLH 17478 b
1331	1331
1332	1332
1333	1333	HB1639- 37 -LRB104 07437 HLH 17478 b HB1639 - 37 - LRB104 07437 HLH 17478 b
1334	1334	HB1639 - 37 - LRB104 07437 HLH 17478 b
1335	1335	1 the events are sponsored by an entity recognized by the school
1336	1336	2 district that consists primarily of volunteers and includes
1337	1337	3 parents and teachers of the school children. This paragraph
1338	1338	4 does not apply to fundraising events (i) for the benefit of
1339	1339	5 private home instruction or (ii) for which the fundraising
1340	1340	6 entity purchases the personal property sold at the events from
1341	1341	7 another individual or entity that sold the property for the
1342	1342	8 purpose of resale by the fundraising entity and that profits
1343	1343	9 from the sale to the fundraising entity. This paragraph is
1344	1344	10 exempt from the provisions of Section 3-75.
1345	1345	11 (22) Beginning January 1, 2000 and through December 31,
1346	1346	12 2001, new or used automatic vending machines that prepare and
1347	1347	13 serve hot food and beverages, including coffee, soup, and
1348	1348	14 other items, and replacement parts for these machines.
1349	1349	15 Beginning January 1, 2002 and through June 30, 2003, machines
1350	1350	16 and parts for machines used in commercial, coin-operated
1351	1351	17 amusement and vending business if a use or occupation tax is
1352	1352	18 paid on the gross receipts derived from the use of the
1353	1353	19 commercial, coin-operated amusement and vending machines. This
1354	1354	20 paragraph is exempt from the provisions of Section 3-75.
1355	1355	21 (23) Beginning August 23, 2001 and through June 30, 2016,
1356	1356	22 food for human consumption that is to be consumed off the
1357	1357	23 premises where it is sold (other than alcoholic beverages,
1358	1358	24 soft drinks, and food that has been prepared for immediate
1359	1359	25 consumption) and prescription and nonprescription medicines,
1360	1360	26 drugs, medical appliances, and insulin, urine testing
1361	1361
1362	1362
1363	1363
1364	1364
1365	1365
1366	1366	HB1639 - 37 - LRB104 07437 HLH 17478 b
1367	1367
1368	1368
1369	1369	HB1639- 38 -LRB104 07437 HLH 17478 b HB1639 - 38 - LRB104 07437 HLH 17478 b
1370	1370	HB1639 - 38 - LRB104 07437 HLH 17478 b
1371	1371	1 materials, syringes, and needles used by diabetics, for human
1372	1372	2 use, when purchased for use by a person receiving medical
1373	1373	3 assistance under Article V of the Illinois Public Aid Code who
1374	1374	4 resides in a licensed long-term care facility, as defined in
1375	1375	5 the Nursing Home Care Act, or in a licensed facility as defined
1376	1376	6 in the ID/DD Community Care Act, the MC/DD Act, or the
1377	1377	7 Specialized Mental Health Rehabilitation Act of 2013.
1378	1378	8 (24) Beginning on August 2, 2001 (the effective date of
1379	1379	9 Public Act 92-227), computers and communications equipment
1380	1380	10 utilized for any hospital purpose and equipment used in the
1381	1381	11 diagnosis, analysis, or treatment of hospital patients
1382	1382	12 purchased by a lessor who leases the equipment, under a lease
1383	1383	13 of one year or longer executed or in effect at the time the
1384	1384	14 lessor would otherwise be subject to the tax imposed by this
1385	1385	15 Act, to a hospital that has been issued an active tax exemption
1386	1386	16 identification number by the Department under Section 1g of
1387	1387	17 the Retailers' Occupation Tax Act. If the equipment is leased
1388	1388	18 in a manner that does not qualify for this exemption or is used
1389	1389	19 in any other nonexempt manner, the lessor shall be liable for
1390	1390	20 the tax imposed under this Act or the Use Tax Act, as the case
1391	1391	21 may be, based on the fair market value of the property at the
1392	1392	22 time the nonqualifying use occurs. No lessor shall collect or
1393	1393	23 attempt to collect an amount (however designated) that
1394	1394	24 purports to reimburse that lessor for the tax imposed by this
1395	1395	25 Act or the Use Tax Act, as the case may be, if the tax has not
1396	1396	26 been paid by the lessor. If a lessor improperly collects any
1397	1397
1398	1398
1399	1399
1400	1400
1401	1401
1402	1402	HB1639 - 38 - LRB104 07437 HLH 17478 b
1403	1403
1404	1404
1405	1405	HB1639- 39 -LRB104 07437 HLH 17478 b HB1639 - 39 - LRB104 07437 HLH 17478 b
1406	1406	HB1639 - 39 - LRB104 07437 HLH 17478 b
1407	1407	1 such amount from the lessee, the lessee shall have a legal
1408	1408	2 right to claim a refund of that amount from the lessor. If,
1409	1409	3 however, that amount is not refunded to the lessee for any
1410	1410	4 reason, the lessor is liable to pay that amount to the
1411	1411	5 Department. This paragraph is exempt from the provisions of
1412	1412	6 Section 3-75.
1413	1413	7 (25) Beginning on August 2, 2001 (the effective date of
1414	1414	8 Public Act 92-227), personal property purchased by a lessor
1415	1415	9 who leases the property, under a lease of one year or longer
1416	1416	10 executed or in effect at the time the lessor would otherwise be
1417	1417	11 subject to the tax imposed by this Act, to a governmental body
1418	1418	12 that has been issued an active tax exemption identification
1419	1419	13 number by the Department under Section 1g of the Retailers'
1420	1420	14 Occupation Tax Act. If the property is leased in a manner that
1421	1421	15 does not qualify for this exemption or is used in any other
1422	1422	16 nonexempt manner, the lessor shall be liable for the tax
1423	1423	17 imposed under this Act or the Use Tax Act, as the case may be,
1424	1424	18 based on the fair market value of the property at the time the
1425	1425	19 nonqualifying use occurs. No lessor shall collect or attempt
1426	1426	20 to collect an amount (however designated) that purports to
1427	1427	21 reimburse that lessor for the tax imposed by this Act or the
1428	1428	22 Use Tax Act, as the case may be, if the tax has not been paid
1429	1429	23 by the lessor. If a lessor improperly collects any such amount
1430	1430	24 from the lessee, the lessee shall have a legal right to claim a
1431	1431	25 refund of that amount from the lessor. If, however, that
1432	1432	26 amount is not refunded to the lessee for any reason, the lessor
1433	1433
1434	1434
1435	1435
1436	1436
1437	1437
1438	1438	HB1639 - 39 - LRB104 07437 HLH 17478 b
1439	1439
1440	1440
1441	1441	HB1639- 40 -LRB104 07437 HLH 17478 b HB1639 - 40 - LRB104 07437 HLH 17478 b
1442	1442	HB1639 - 40 - LRB104 07437 HLH 17478 b
1443	1443	1 is liable to pay that amount to the Department. This paragraph
1444	1444	2 is exempt from the provisions of Section 3-75.
1445	1445	3 (26) Beginning January 1, 2008, tangible personal property
1446	1446	4 used in the construction or maintenance of a community water
1447	1447	5 supply, as defined under Section 3.145 of the Environmental
1448	1448	6 Protection Act, that is operated by a not-for-profit
1449	1449	7 corporation that holds a valid water supply permit issued
1450	1450	8 under Title IV of the Environmental Protection Act. This
1451	1451	9 paragraph is exempt from the provisions of Section 3-75.
1452	1452	10 (27) Beginning January 1, 2010 and continuing through
1453	1453	11 December 31, 2029, materials, parts, equipment, components,
1454	1454	12 and furnishings incorporated into or upon an aircraft as part
1455	1455	13 of the modification, refurbishment, completion, replacement,
1456	1456	14 repair, or maintenance of the aircraft. This exemption
1457	1457	15 includes consumable supplies used in the modification,
1458	1458	16 refurbishment, completion, replacement, repair, and
1459	1459	17 maintenance of aircraft. However, until January 1, 2024, this
1460	1460	18 exemption excludes any materials, parts, equipment,
1461	1461	19 components, and consumable supplies used in the modification,
1462	1462	20 replacement, repair, and maintenance of aircraft engines or
1463	1463	21 power plants, whether such engines or power plants are
1464	1464	22 installed or uninstalled upon any such aircraft. "Consumable
1465	1465	23 supplies" include, but are not limited to, adhesive, tape,
1466	1466	24 sandpaper, general purpose lubricants, cleaning solution,
1467	1467	25 latex gloves, and protective films.
1468	1468	26 Beginning January 1, 2010 and continuing through December
1469	1469
1470	1470
1471	1471
1472	1472
1473	1473
1474	1474	HB1639 - 40 - LRB104 07437 HLH 17478 b
1475	1475
1476	1476
1477	1477	HB1639- 41 -LRB104 07437 HLH 17478 b HB1639 - 41 - LRB104 07437 HLH 17478 b
1478	1478	HB1639 - 41 - LRB104 07437 HLH 17478 b
1479	1479	1 31, 2023, this exemption applies only to the use of qualifying
1480	1480	2 tangible personal property transferred incident to the
1481	1481	3 modification, refurbishment, completion, replacement, repair,
1482	1482	4 or maintenance of aircraft by persons who (i) hold an Air
1483	1483	5 Agency Certificate and are empowered to operate an approved
1484	1484	6 repair station by the Federal Aviation Administration, (ii)
1485	1485	7 have a Class IV Rating, and (iii) conduct operations in
1486	1486	8 accordance with Part 145 of the Federal Aviation Regulations.
1487	1487	9 From January 1, 2024 through December 31, 2029, this exemption
1488	1488	10 applies only to the use of qualifying tangible personal
1489	1489	11 property transferred incident to: (A) the modification,
1490	1490	12 refurbishment, completion, repair, replacement, or maintenance
1491	1491	13 of an aircraft by persons who (i) hold an Air Agency
1492	1492	14 Certificate and are empowered to operate an approved repair
1493	1493	15 station by the Federal Aviation Administration, (ii) have a
1494	1494	16 Class IV Rating, and (iii) conduct operations in accordance
1495	1495	17 with Part 145 of the Federal Aviation Regulations; and (B) the
1496	1496	18 modification, replacement, repair, and maintenance of aircraft
1497	1497	19 engines or power plants without regard to whether or not those
1498	1498	20 persons meet the qualifications of item (A).
1499	1499	21 The exemption does not include aircraft operated by a
1500	1500	22 commercial air carrier providing scheduled passenger air
1501	1501	23 service pursuant to authority issued under Part 121 or Part
1502	1502	24 129 of the Federal Aviation Regulations. The changes made to
1503	1503	25 this paragraph (27) by Public Act 98-534 are declarative of
1504	1504	26 existing law. It is the intent of the General Assembly that the
1505	1505
1506	1506
1507	1507
1508	1508
1509	1509
1510	1510	HB1639 - 41 - LRB104 07437 HLH 17478 b
1511	1511
1512	1512
1513	1513	HB1639- 42 -LRB104 07437 HLH 17478 b HB1639 - 42 - LRB104 07437 HLH 17478 b
1514	1514	HB1639 - 42 - LRB104 07437 HLH 17478 b
1515	1515	1 exemption under this paragraph (27) applies continuously from
1516	1516	2 January 1, 2010 through December 31, 2024; however, no claim
1517	1517	3 for credit or refund is allowed for taxes paid as a result of
1518	1518	4 the disallowance of this exemption on or after January 1, 2015
1519	1519	5 and prior to February 5, 2020 (the effective date of Public Act
1520	1520	6 101-629).
1521	1521	7 (28) Tangible personal property purchased by a
1522	1522	8 public-facilities corporation, as described in Section
1523	1523	9 11-65-10 of the Illinois Municipal Code, for purposes of
1524	1524	10 constructing or furnishing a municipal convention hall, but
1525	1525	11 only if the legal title to the municipal convention hall is
1526	1526	12 transferred to the municipality without any further
1527	1527	13 consideration by or on behalf of the municipality at the time
1528	1528	14 of the completion of the municipal convention hall or upon the
1529	1529	15 retirement or redemption of any bonds or other debt
1530	1530	16 instruments issued by the public-facilities corporation in
1531	1531	17 connection with the development of the municipal convention
1532	1532	18 hall. This exemption includes existing public-facilities
1533	1533	19 corporations as provided in Section 11-65-25 of the Illinois
1534	1534	20 Municipal Code. This paragraph is exempt from the provisions
1535	1535	21 of Section 3-75.
1536	1536	22 (29) Beginning January 1, 2017 and through December 31,
1537	1537	23 2026, menstrual pads, tampons, and menstrual cups.
1538	1538	24 (30) Tangible personal property transferred to a purchaser
1539	1539	25 who is exempt from the tax imposed by this Act by operation of
1540	1540	26 federal law. This paragraph is exempt from the provisions of
1541	1541
1542	1542
1543	1543
1544	1544
1545	1545
1546	1546	HB1639 - 42 - LRB104 07437 HLH 17478 b
1547	1547
1548	1548
1549	1549	HB1639- 43 -LRB104 07437 HLH 17478 b HB1639 - 43 - LRB104 07437 HLH 17478 b
1550	1550	HB1639 - 43 - LRB104 07437 HLH 17478 b
1551	1551	1 Section 3-75.
1552	1552	2 (31) Qualified tangible personal property used in the
1553	1553	3 construction or operation of a data center that has been
1554	1554	4 granted a certificate of exemption by the Department of
1555	1555	5 Commerce and Economic Opportunity, whether that tangible
1556	1556	6 personal property is purchased by the owner, operator, or
1557	1557	7 tenant of the data center or by a contractor or subcontractor
1558	1558	8 of the owner, operator, or tenant. Data centers that would
1559	1559	9 have qualified for a certificate of exemption prior to January
1560	1560	10 1, 2020 had Public Act 101-31 been in effect, may apply for and
1561	1561	11 obtain an exemption for subsequent purchases of computer
1562	1562	12 equipment or enabling software purchased or leased to upgrade,
1563	1563	13 supplement, or replace computer equipment or enabling software
1564	1564	14 purchased or leased in the original investment that would have
1565	1565	15 qualified.
1566	1566	16 The Department of Commerce and Economic Opportunity shall
1567	1567	17 grant a certificate of exemption under this item (31) to
1568	1568	18 qualified data centers as defined by Section 605-1025 of the
1569	1569	19 Department of Commerce and Economic Opportunity Law of the
1570	1570	20 Civil Administrative Code of Illinois.
1571	1571	21 For the purposes of this item (31):
1572	1572	22 "Data center" means a building or a series of
1573	1573	23 buildings rehabilitated or constructed to house working
1574	1574	24 servers in one physical location or multiple sites within
1575	1575	25 the State of Illinois.
1576	1576	26 "Qualified tangible personal property" means:
1577	1577
1578	1578
1579	1579
1580	1580
1581	1581
1582	1582	HB1639 - 43 - LRB104 07437 HLH 17478 b
1583	1583
1584	1584
1585	1585	HB1639- 44 -LRB104 07437 HLH 17478 b HB1639 - 44 - LRB104 07437 HLH 17478 b
1586	1586	HB1639 - 44 - LRB104 07437 HLH 17478 b
1587	1587	1 electrical systems and equipment; climate control and
1588	1588	2 chilling equipment and systems; mechanical systems and
1589	1589	3 equipment; monitoring and secure systems; emergency
1590	1590	4 generators; hardware; computers; servers; data storage
1591	1591	5 devices; network connectivity equipment; racks; cabinets;
1592	1592	6 telecommunications cabling infrastructure; raised floor
1593	1593	7 systems; peripheral components or systems; software;
1594	1594	8 mechanical, electrical, or plumbing systems; battery
1595	1595	9 systems; cooling systems and towers; temperature control
1596	1596	10 systems; other cabling; and other data center
1597	1597	11 infrastructure equipment and systems necessary to operate
1598	1598	12 qualified tangible personal property, including fixtures;
1599	1599	13 and component parts of any of the foregoing, including
1600	1600	14 installation, maintenance, repair, refurbishment, and
1601	1601	15 replacement of qualified tangible personal property to
1602	1602	16 generate, transform, transmit, distribute, or manage
1603	1603	17 electricity necessary to operate qualified tangible
1604	1604	18 personal property; and all other tangible personal
1605	1605	19 property that is essential to the operations of a computer
1606	1606	20 data center. The term "qualified tangible personal
1607	1607	21 property" also includes building materials physically
1608	1608	22 incorporated into the qualifying data center. To document
1609	1609	23 the exemption allowed under this Section, the retailer
1610	1610	24 must obtain from the purchaser a copy of the certificate
1611	1611	25 of eligibility issued by the Department of Commerce and
1612	1612	26 Economic Opportunity.
1613	1613
1614	1614
1615	1615
1616	1616
1617	1617
1618	1618	HB1639 - 44 - LRB104 07437 HLH 17478 b
1619	1619
1620	1620
1621	1621	HB1639- 45 -LRB104 07437 HLH 17478 b HB1639 - 45 - LRB104 07437 HLH 17478 b
1622	1622	HB1639 - 45 - LRB104 07437 HLH 17478 b
1623	1623	1 This item (31) is exempt from the provisions of Section
1624	1624	2 3-75.
1625	1625	3 (32) Beginning July 1, 2022, breast pumps, breast pump
1626	1626	4 collection and storage supplies, and breast pump kits. This
1627	1627	5 item (32) is exempt from the provisions of Section 3-75. As
1628	1628	6 used in this item (32):
1629	1629	7 "Breast pump" means an electrically controlled or
1630	1630	8 manually controlled pump device designed or marketed to be
1631	1631	9 used to express milk from a human breast during lactation,
1632	1632	10 including the pump device and any battery, AC adapter, or
1633	1633	11 other power supply unit that is used to power the pump
1634	1634	12 device and is packaged and sold with the pump device at the
1635	1635	13 time of sale.
1636	1636	14 "Breast pump collection and storage supplies" means
1637	1637	15 items of tangible personal property designed or marketed
1638	1638	16 to be used in conjunction with a breast pump to collect
1639	1639	17 milk expressed from a human breast and to store collected
1640	1640	18 milk until it is ready for consumption.
1641	1641	19 "Breast pump collection and storage supplies"
1642	1642	20 includes, but is not limited to: breast shields and breast
1643	1643	21 shield connectors; breast pump tubes and tubing adapters;
1644	1644	22 breast pump valves and membranes; backflow protectors and
1645	1645	23 backflow protector adaptors; bottles and bottle caps
1646	1646	24 specific to the operation of the breast pump; and breast
1647	1647	25 milk storage bags.
1648	1648	26 "Breast pump collection and storage supplies" does not
1649	1649
1650	1650
1651	1651
1652	1652
1653	1653
1654	1654	HB1639 - 45 - LRB104 07437 HLH 17478 b
1655	1655
1656	1656
1657	1657	HB1639- 46 -LRB104 07437 HLH 17478 b HB1639 - 46 - LRB104 07437 HLH 17478 b
1658	1658	HB1639 - 46 - LRB104 07437 HLH 17478 b
1659	1659	1 include: (1) bottles and bottle caps not specific to the
1660	1660	2 operation of the breast pump; (2) breast pump travel bags
1661	1661	3 and other similar carrying accessories, including ice
1662	1662	4 packs, labels, and other similar products; (3) breast pump
1663	1663	5 cleaning supplies; (4) nursing bras, bra pads, breast
1664	1664	6 shells, and other similar products; and (5) creams,
1665	1665	7 ointments, and other similar products that relieve
1666	1666	8 breastfeeding-related symptoms or conditions of the
1667	1667	9 breasts or nipples, unless sold as part of a breast pump
1668	1668	10 kit that is pre-packaged by the breast pump manufacturer
1669	1669	11 or distributor.
1670	1670	12 "Breast pump kit" means a kit that: (1) contains no
1671	1671	13 more than a breast pump, breast pump collection and
1672	1672	14 storage supplies, a rechargeable battery for operating the
1673	1673	15 breast pump, a breastmilk cooler, bottle stands, ice
1674	1674	16 packs, and a breast pump carrying case; and (2) is
1675	1675	17 pre-packaged as a breast pump kit by the breast pump
1676	1676	18 manufacturer or distributor.
1677	1677	19 (33) Tangible personal property sold by or on behalf of
1678	1678	20 the State Treasurer pursuant to the Revised Uniform Unclaimed
1679	1679	21 Property Act. This item (33) is exempt from the provisions of
1680	1680	22 Section 3-75.
1681	1681	23 (34) Beginning on January 1, 2024, tangible personal
1682	1682	24 property purchased by an active duty member of the armed
1683	1683	25 forces of the United States who presents valid military
1684	1684	26 identification and purchases the property using a form of
1685	1685
1686	1686
1687	1687
1688	1688
1689	1689
1690	1690	HB1639 - 46 - LRB104 07437 HLH 17478 b
1691	1691
1692	1692
1693	1693	HB1639- 47 -LRB104 07437 HLH 17478 b HB1639 - 47 - LRB104 07437 HLH 17478 b
1694	1694	HB1639 - 47 - LRB104 07437 HLH 17478 b
1695	1695	1 payment where the federal government is the payor. The member
1696	1696	2 of the armed forces must complete, at the point of sale, a form
1697	1697	3 prescribed by the Department of Revenue documenting that the
1698	1698	4 transaction is eligible for the exemption under this
1699	1699	5 paragraph. Retailers must keep the form as documentation of
1700	1700	6 the exemption in their records for a period of not less than 6
1701	1701	7 years. "Armed forces of the United States" means the United
1702	1702	8 States Army, Navy, Air Force, Space Force, Marine Corps, or
1703	1703	9 Coast Guard. This paragraph is exempt from the provisions of
1704	1704	10 Section 3-75.
1705	1705	11 (35) Beginning July 1, 2024, home-delivered meals provided
1706	1706	12 to Medicare or Medicaid recipients when payment is made by an
1707	1707	13 intermediary, such as a Medicare Administrative Contractor, a
1708	1708	14 Managed Care Organization, or a Medicare Advantage
1709	1709	15 Organization, pursuant to a government contract. This
1710	1710	16 paragraph (35) is exempt from the provisions of Section 3-75.
1711	1711	17 (36) (35) Beginning on January 1, 2026, as further defined
1712	1712	18 in Section 3-10, food prepared for immediate consumption and
1713	1713	19 transferred incident to a sale of service subject to this Act
1714	1714	20 or the Service Occupation Tax Act by an entity licensed under
1715	1715	21 the Hospital Licensing Act, the Nursing Home Care Act, the
1716	1716	22 Assisted Living and Shared Housing Act, the ID/DD Community
1717	1717	23 Care Act, the MC/DD Act, the Specialized Mental Health
1718	1718	24 Rehabilitation Act of 2013, or the Child Care Act of 1969, or
1719	1719	25 by an entity that holds a permit issued pursuant to the Life
1720	1720	26 Care Facilities Act. This item (36) (35) is exempt from the
1721	1721
1722	1722
1723	1723
1724	1724
1725	1725
1726	1726	HB1639 - 47 - LRB104 07437 HLH 17478 b
1727	1727
1728	1728
1729	1729	HB1639- 48 -LRB104 07437 HLH 17478 b HB1639 - 48 - LRB104 07437 HLH 17478 b
1730	1730	HB1639 - 48 - LRB104 07437 HLH 17478 b
1731	1731	1 provisions of Section 3-75.
1732	1732	2 (37) (36) Beginning on January 1, 2026, as further defined
1733	1733	3 in Section 3-10, food for human consumption that is to be
1734	1734	4 consumed off the premises where it is sold (other than
1735	1735	5 alcoholic beverages, food consisting of or infused with adult
1736	1736	6 use cannabis, soft drinks, candy, and food that has been
1737	1737	7 prepared for immediate consumption). This item (37) (36) is
1738	1738	8 exempt from the provisions of Section 3-75.
1739	1739	9 (38) (35) Use by a lessee of the following leased tangible
1740	1740	10 personal property:
1741	1741	11 (1) software transferred subject to a license that
1742	1742	12 meets the following requirements:
1743	1743	13 (A) it is evidenced by a written agreement signed
1744	1744	14 by the licensor and the customer;
1745	1745	15 (i) an electronic agreement in which the
1746	1746	16 customer accepts the license by means of an
1747	1747	17 electronic signature that is verifiable and can be
1748	1748	18 authenticated and is attached to or made part of
1749	1749	19 the license will comply with this requirement;
1750	1750	20 (ii) a license agreement in which the customer
1751	1751	21 electronically accepts the terms by clicking "I
1752	1752	22 agree" does not comply with this requirement;
1753	1753	23 (B) it restricts the customer's duplication and
1754	1754	24 use of the software;
1755	1755	25 (C) it prohibits the customer from licensing,
1756	1756	26 sublicensing, or transferring the software to a third
1757	1757
1758	1758
1759	1759
1760	1760
1761	1761
1762	1762	HB1639 - 48 - LRB104 07437 HLH 17478 b
1763	1763
1764	1764
1765	1765	HB1639- 49 -LRB104 07437 HLH 17478 b HB1639 - 49 - LRB104 07437 HLH 17478 b
1766	1766	HB1639 - 49 - LRB104 07437 HLH 17478 b
1767	1767	1 party (except to a related party) without the
1768	1768	2 permission and continued control of the licensor;
1769	1769	3 (D) the licensor has a policy of providing another
1770	1770	4 copy at minimal or no charge if the customer loses or
1771	1771	5 damages the software, or of permitting the licensee to
1772	1772	6 make and keep an archival copy, and such policy is
1773	1773	7 either stated in the license agreement, supported by
1774	1774	8 the licensor's books and records, or supported by a
1775	1775	9 notarized statement made under penalties of perjury by
1776	1776	10 the licensor; and
1777	1777	11 (E) the customer must destroy or return all copies
1778	1778	12 of the software to the licensor at the end of the
1779	1779	13 license period; this provision is deemed to be met, in
1780	1780	14 the case of a perpetual license, without being set
1781	1781	15 forth in the license agreement; and
1782	1782	16 (2) property that is subject to a tax on lease
1783	1783	17 receipts imposed by a home rule unit of local government
1784	1784	18 if the ordinance imposing that tax was adopted prior to
1785	1785	19 January 1, 2023.
1786	1786	20 (39) On and after January 1, 2026, essential supplies
1787	1787	21 purchased by a day care center that has been granted a
1788	1788	22 certificate of exemption by the Department. The Department of
1789	1789	23 Children and Family Services may share information with the
1790	1790	24 Department of Revenue for the purpose of administering the
1791	1791	25 provisions of this exemption. This item (39) is exempt from
1792	1792	26 the provisions of Section 3-75.
1793	1793
1794	1794
1795	1795
1796	1796
1797	1797
1798	1798	HB1639 - 49 - LRB104 07437 HLH 17478 b
1799	1799
1800	1800
1801	1801	HB1639- 50 -LRB104 07437 HLH 17478 b HB1639 - 50 - LRB104 07437 HLH 17478 b
1802	1802	HB1639 - 50 - LRB104 07437 HLH 17478 b
1803	1803	1 As used in this item (39):
1804	1804	2 "Day care center" has the meaning given to that term in
1805	1805	3 Section 2.09 of the Child Care Act of 1969.
1806	1806	4 "Essential supplies" means items designated, by rule, as
1807	1807	5 essential supplies by the Department of Children and Family
1808	1808	6 Services, including, but not limited to: food and beverages to
1809	1809	7 be consumed by a child as a snack or meal at the day care
1810	1810	8 center, including, but not limited to, fruits and vegetables,
1811	1811	9 whole grains, proteins, water, and reduced fat or skim milk;
1812	1812	10 diapers; wipes; first aid kits; smoke detectors; nap mats; and
1813	1813	11 soap and hand sanitizer.
1814	1814	12 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
1815	1815	13 Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1816	1816	14 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
1817	1817	15 Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
1818	1818	16 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
1819	1819	17 103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
1820	1820	18 7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995,
1821	1821	19 eff. 8-9-24; revised 11-26-24.)
1822	1822	20 Section 15. The Service Occupation Tax Act is amended by
1823	1823	21 changing Section 3-5 as follows:
1824	1824	22 (35 ILCS 115/3-5)
1825	1825	23 Sec. 3-5. Exemptions. The following tangible personal
1826	1826	24 property is exempt from the tax imposed by this Act:
1827	1827
1828	1828
1829	1829
1830	1830
1831	1831
1832	1832	HB1639 - 50 - LRB104 07437 HLH 17478 b
1833	1833
1834	1834
1835	1835	HB1639- 51 -LRB104 07437 HLH 17478 b HB1639 - 51 - LRB104 07437 HLH 17478 b
1836	1836	HB1639 - 51 - LRB104 07437 HLH 17478 b
1837	1837	1 (1) Personal property sold by a corporation, society,
1838	1838	2 association, foundation, institution, or organization, other
1839	1839	3 than a limited liability company, that is organized and
1840	1840	4 operated as a not-for-profit service enterprise for the
1841	1841	5 benefit of persons 65 years of age or older if the personal
1842	1842	6 property was not purchased by the enterprise for the purpose
1843	1843	7 of resale by the enterprise.
1844	1844	8 (2) Personal property purchased by a not-for-profit
1845	1845	9 Illinois county fair association for use in conducting,
1846	1846	10 operating, or promoting the county fair.
1847	1847	11 (3) Personal property purchased by any not-for-profit arts
1848	1848	12 or cultural organization that establishes, by proof required
1849	1849	13 by the Department by rule, that it has received an exemption
1850	1850	14 under Section 501(c)(3) of the Internal Revenue Code and that
1851	1851	15 is organized and operated primarily for the presentation or
1852	1852	16 support of arts or cultural programming, activities, or
1853	1853	17 services. These organizations include, but are not limited to,
1854	1854	18 music and dramatic arts organizations such as symphony
1855	1855	19 orchestras and theatrical groups, arts and cultural service
1856	1856	20 organizations, local arts councils, visual arts organizations,
1857	1857	21 and media arts organizations. On and after July 1, 2001 (the
1858	1858	22 effective date of Public Act 92-35), however, an entity
1859	1859	23 otherwise eligible for this exemption shall not make tax-free
1860	1860	24 purchases unless it has an active identification number issued
1861	1861	25 by the Department.
1862	1862	26 (4) Legal tender, currency, medallions, or gold or silver
1863	1863
1864	1864
1865	1865
1866	1866
1867	1867
1868	1868	HB1639 - 51 - LRB104 07437 HLH 17478 b
1869	1869
1870	1870
1871	1871	HB1639- 52 -LRB104 07437 HLH 17478 b HB1639 - 52 - LRB104 07437 HLH 17478 b
1872	1872	HB1639 - 52 - LRB104 07437 HLH 17478 b
1873	1873	1 coinage issued by the State of Illinois, the government of the
1874	1874	2 United States of America, or the government of any foreign
1875	1875	3 country, and bullion.
1876	1876	4 (5) Until July 1, 2003 and beginning again on September 1,
1877	1877	5 2004 through August 30, 2014, graphic arts machinery and
1878	1878	6 equipment, including repair and replacement parts, both new
1879	1879	7 and used, and including that manufactured on special order or
1880	1880	8 purchased for lease, certified by the purchaser to be used
1881	1881	9 primarily for graphic arts production. Equipment includes
1882	1882	10 chemicals or chemicals acting as catalysts but only if the
1883	1883	11 chemicals or chemicals acting as catalysts effect a direct and
1884	1884	12 immediate change upon a graphic arts product. Beginning on
1885	1885	13 July 1, 2017, graphic arts machinery and equipment is included
1886	1886	14 in the manufacturing and assembling machinery and equipment
1887	1887	15 exemption under Section 2 of this Act.
1888	1888	16 (6) Personal property sold by a teacher-sponsored student
1889	1889	17 organization affiliated with an elementary or secondary school
1890	1890	18 located in Illinois.
1891	1891	19 (7) Farm machinery and equipment, both new and used,
1892	1892	20 including that manufactured on special order, certified by the
1893	1893	21 purchaser to be used primarily for production agriculture or
1894	1894	22 State or federal agricultural programs, including individual
1895	1895	23 replacement parts for the machinery and equipment, including
1896	1896	24 machinery and equipment purchased for lease, and including
1897	1897	25 implements of husbandry defined in Section 1-130 of the
1898	1898	26 Illinois Vehicle Code, farm machinery and agricultural
1899	1899
1900	1900
1901	1901
1902	1902
1903	1903
1904	1904	HB1639 - 52 - LRB104 07437 HLH 17478 b
1905	1905
1906	1906
1907	1907	HB1639- 53 -LRB104 07437 HLH 17478 b HB1639 - 53 - LRB104 07437 HLH 17478 b
1908	1908	HB1639 - 53 - LRB104 07437 HLH 17478 b
1909	1909	1 chemical and fertilizer spreaders, and nurse wagons required
1910	1910	2 to be registered under Section 3-809 of the Illinois Vehicle
1911	1911	3 Code, but excluding other motor vehicles required to be
1912	1912	4 registered under the Illinois Vehicle Code. Horticultural
1913	1913	5 polyhouses or hoop houses used for propagating, growing, or
1914	1914	6 overwintering plants shall be considered farm machinery and
1915	1915	7 equipment under this item (7). Agricultural chemical tender
1916	1916	8 tanks and dry boxes shall include units sold separately from a
1917	1917	9 motor vehicle required to be licensed and units sold mounted
1918	1918	10 on a motor vehicle required to be licensed if the selling price
1919	1919	11 of the tender is separately stated.
1920	1920	12 Farm machinery and equipment shall include precision
1921	1921	13 farming equipment that is installed or purchased to be
1922	1922	14 installed on farm machinery and equipment, including, but not
1923	1923	15 limited to, tractors, harvesters, sprayers, planters, seeders,
1924	1924	16 or spreaders. Precision farming equipment includes, but is not
1925	1925	17 limited to, soil testing sensors, computers, monitors,
1926	1926	18 software, global positioning and mapping systems, and other
1927	1927	19 such equipment.
1928	1928	20 Farm machinery and equipment also includes computers,
1929	1929	21 sensors, software, and related equipment used primarily in the
1930	1930	22 computer-assisted operation of production agriculture
1931	1931	23 facilities, equipment, and activities such as, but not limited
1932	1932	24 to, the collection, monitoring, and correlation of animal and
1933	1933	25 crop data for the purpose of formulating animal diets and
1934	1934	26 agricultural chemicals.
1935	1935
1936	1936
1937	1937
1938	1938
1939	1939
1940	1940	HB1639 - 53 - LRB104 07437 HLH 17478 b
1941	1941
1942	1942
1943	1943	HB1639- 54 -LRB104 07437 HLH 17478 b HB1639 - 54 - LRB104 07437 HLH 17478 b
1944	1944	HB1639 - 54 - LRB104 07437 HLH 17478 b
1945	1945	1 Beginning on January 1, 2024, farm machinery and equipment
1946	1946	2 also includes electrical power generation equipment used
1947	1947	3 primarily for production agriculture.
1948	1948	4 This item (7) is exempt from the provisions of Section
1949	1949	5 3-55.
1950	1950	6 (8) Until June 30, 2013, fuel and petroleum products sold
1951	1951	7 to or used by an air common carrier, certified by the carrier
1952	1952	8 to be used for consumption, shipment, or storage in the
1953	1953	9 conduct of its business as an air common carrier, for a flight
1954	1954	10 destined for or returning from a location or locations outside
1955	1955	11 the United States without regard to previous or subsequent
1956	1956	12 domestic stopovers.
1957	1957	13 Beginning July 1, 2013, fuel and petroleum products sold
1958	1958	14 to or used by an air carrier, certified by the carrier to be
1959	1959	15 used for consumption, shipment, or storage in the conduct of
1960	1960	16 its business as an air common carrier, for a flight that (i) is
1961	1961	17 engaged in foreign trade or is engaged in trade between the
1962	1962	18 United States and any of its possessions and (ii) transports
1963	1963	19 at least one individual or package for hire from the city of
1964	1964	20 origination to the city of final destination on the same
1965	1965	21 aircraft, without regard to a change in the flight number of
1966	1966	22 that aircraft.
1967	1967	23 (9) Proceeds of mandatory service charges separately
1968	1968	24 stated on customers' bills for the purchase and consumption of
1969	1969	25 food and beverages, to the extent that the proceeds of the
1970	1970	26 service charge are in fact turned over as tips or as a
1971	1971
1972	1972
1973	1973
1974	1974
1975	1975
1976	1976	HB1639 - 54 - LRB104 07437 HLH 17478 b
1977	1977
1978	1978
1979	1979	HB1639- 55 -LRB104 07437 HLH 17478 b HB1639 - 55 - LRB104 07437 HLH 17478 b
1980	1980	HB1639 - 55 - LRB104 07437 HLH 17478 b
1981	1981	1 substitute for tips to the employees who participate directly
1982	1982	2 in preparing, serving, hosting or cleaning up the food or
1983	1983	3 beverage function with respect to which the service charge is
1984	1984	4 imposed.
1985	1985	5 (10) Until July 1, 2003, oil field exploration, drilling,
1986	1986	6 and production equipment, including (i) rigs and parts of
1987	1987	7 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1988	1988	8 pipe and tubular goods, including casing and drill strings,
1989	1989	9 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1990	1990	10 lines, (v) any individual replacement part for oil field
1991	1991	11 exploration, drilling, and production equipment, and (vi)
1992	1992	12 machinery and equipment purchased for lease; but excluding
1993	1993	13 motor vehicles required to be registered under the Illinois
1994	1994	14 Vehicle Code.
1995	1995	15 (11) Photoprocessing machinery and equipment, including
1996	1996	16 repair and replacement parts, both new and used, including
1997	1997	17 that manufactured on special order, certified by the purchaser
1998	1998	18 to be used primarily for photoprocessing, and including
1999	1999	19 photoprocessing machinery and equipment purchased for lease.
2000	2000	20 (12) Until July 1, 2028, coal and aggregate exploration,
2001	2001	21 mining, off-highway hauling, processing, maintenance, and
2002	2002	22 reclamation equipment, including replacement parts and
2003	2003	23 equipment, and including equipment purchased for lease, but
2004	2004	24 excluding motor vehicles required to be registered under the
2005	2005	25 Illinois Vehicle Code. The changes made to this Section by
2006	2006	26 Public Act 97-767 apply on and after July 1, 2003, but no claim
2007	2007
2008	2008
2009	2009
2010	2010
2011	2011
2012	2012	HB1639 - 55 - LRB104 07437 HLH 17478 b
2013	2013
2014	2014
2015	2015	HB1639- 56 -LRB104 07437 HLH 17478 b HB1639 - 56 - LRB104 07437 HLH 17478 b
2016	2016	HB1639 - 56 - LRB104 07437 HLH 17478 b
2017	2017	1 for credit or refund is allowed on or after August 16, 2013
2018	2018	2 (the effective date of Public Act 98-456) for such taxes paid
2019	2019	3 during the period beginning July 1, 2003 and ending on August
2020	2020	4 16, 2013 (the effective date of Public Act 98-456).
2021	2021	5 (13) Beginning January 1, 1992 and through June 30, 2016,
2022	2022	6 food for human consumption that is to be consumed off the
2023	2023	7 premises where it is sold (other than alcoholic beverages,
2024	2024	8 soft drinks and food that has been prepared for immediate
2025	2025	9 consumption) and prescription and non-prescription medicines,
2026	2026	10 drugs, medical appliances, and insulin, urine testing
2027	2027	11 materials, syringes, and needles used by diabetics, for human
2028	2028	12 use, when purchased for use by a person receiving medical
2029	2029	13 assistance under Article V of the Illinois Public Aid Code who
2030	2030	14 resides in a licensed long-term care facility, as defined in
2031	2031	15 the Nursing Home Care Act, or in a licensed facility as defined
2032	2032	16 in the ID/DD Community Care Act, the MC/DD Act, or the
2033	2033	17 Specialized Mental Health Rehabilitation Act of 2013.
2034	2034	18 (14) Semen used for artificial insemination of livestock
2035	2035	19 for direct agricultural production.
2036	2036	20 (15) Horses, or interests in horses, registered with and
2037	2037	21 meeting the requirements of any of the Arabian Horse Club
2038	2038	22 Registry of America, Appaloosa Horse Club, American Quarter
2039	2039	23 Horse Association, United States Trotting Association, or
2040	2040	24 Jockey Club, as appropriate, used for purposes of breeding or
2041	2041	25 racing for prizes. This item (15) is exempt from the
2042	2042	26 provisions of Section 3-55, and the exemption provided for
2043	2043
2044	2044
2045	2045
2046	2046
2047	2047
2048	2048	HB1639 - 56 - LRB104 07437 HLH 17478 b
2049	2049
2050	2050
2051	2051	HB1639- 57 -LRB104 07437 HLH 17478 b HB1639 - 57 - LRB104 07437 HLH 17478 b
2052	2052	HB1639 - 57 - LRB104 07437 HLH 17478 b
2053	2053	1 under this item (15) applies for all periods beginning May 30,
2054	2054	2 1995, but no claim for credit or refund is allowed on or after
2055	2055	3 January 1, 2008 (the effective date of Public Act 95-88) for
2056	2056	4 such taxes paid during the period beginning May 30, 2000 and
2057	2057	5 ending on January 1, 2008 (the effective date of Public Act
2058	2058	6 95-88).
2059	2059	7 (16) Computers and communications equipment utilized for
2060	2060	8 any hospital purpose and equipment used in the diagnosis,
2061	2061	9 analysis, or treatment of hospital patients sold to a lessor
2062	2062	10 who leases the equipment, under a lease of one year or longer
2063	2063	11 executed or in effect at the time of the purchase, to a
2064	2064	12 hospital that has been issued an active tax exemption
2065	2065	13 identification number by the Department under Section 1g of
2066	2066	14 the Retailers' Occupation Tax Act.
2067	2067	15 (17) Personal property sold to a lessor who leases the
2068	2068	16 property, under a lease of one year or longer executed or in
2069	2069	17 effect at the time of the purchase, to a governmental body that
2070	2070	18 has been issued an active tax exemption identification number
2071	2071	19 by the Department under Section 1g of the Retailers'
2072	2072	20 Occupation Tax Act.
2073	2073	21 (18) Beginning with taxable years ending on or after
2074	2074	22 December 31, 1995 and ending with taxable years ending on or
2075	2075	23 before December 31, 2004, personal property that is donated
2076	2076	24 for disaster relief to be used in a State or federally declared
2077	2077	25 disaster area in Illinois or bordering Illinois by a
2078	2078	26 manufacturer or retailer that is registered in this State to a
2079	2079
2080	2080
2081	2081
2082	2082
2083	2083
2084	2084	HB1639 - 57 - LRB104 07437 HLH 17478 b
2085	2085
2086	2086
2087	2087	HB1639- 58 -LRB104 07437 HLH 17478 b HB1639 - 58 - LRB104 07437 HLH 17478 b
2088	2088	HB1639 - 58 - LRB104 07437 HLH 17478 b
2089	2089	1 corporation, society, association, foundation, or institution
2090	2090	2 that has been issued a sales tax exemption identification
2091	2091	3 number by the Department that assists victims of the disaster
2092	2092	4 who reside within the declared disaster area.
2093	2093	5 (19) Beginning with taxable years ending on or after
2094	2094	6 December 31, 1995 and ending with taxable years ending on or
2095	2095	7 before December 31, 2004, personal property that is used in
2096	2096	8 the performance of infrastructure repairs in this State,
2097	2097	9 including, but not limited to, municipal roads and streets,
2098	2098	10 access roads, bridges, sidewalks, waste disposal systems,
2099	2099	11 water and sewer line extensions, water distribution and
2100	2100	12 purification facilities, storm water drainage and retention
2101	2101	13 facilities, and sewage treatment facilities, resulting from a
2102	2102	14 State or federally declared disaster in Illinois or bordering
2103	2103	15 Illinois when such repairs are initiated on facilities located
2104	2104	16 in the declared disaster area within 6 months after the
2105	2105	17 disaster.
2106	2106	18 (20) Beginning July 1, 1999, game or game birds sold at a
2107	2107	19 "game breeding and hunting preserve area" as that term is used
2108	2108	20 in the Wildlife Code. This paragraph is exempt from the
2109	2109	21 provisions of Section 3-55.
2110	2110	22 (21) A motor vehicle, as that term is defined in Section
2111	2111	23 1-146 of the Illinois Vehicle Code, that is donated to a
2112	2112	24 corporation, limited liability company, society, association,
2113	2113	25 foundation, or institution that is determined by the
2114	2114	26 Department to be organized and operated exclusively for
2115	2115
2116	2116
2117	2117
2118	2118
2119	2119
2120	2120	HB1639 - 58 - LRB104 07437 HLH 17478 b
2121	2121
2122	2122
2123	2123	HB1639- 59 -LRB104 07437 HLH 17478 b HB1639 - 59 - LRB104 07437 HLH 17478 b
2124	2124	HB1639 - 59 - LRB104 07437 HLH 17478 b
2125	2125	1 educational purposes. For purposes of this exemption, "a
2126	2126	2 corporation, limited liability company, society, association,
2127	2127	3 foundation, or institution organized and operated exclusively
2128	2128	4 for educational purposes" means all tax-supported public
2129	2129	5 schools, private schools that offer systematic instruction in
2130	2130	6 useful branches of learning by methods common to public
2131	2131	7 schools and that compare favorably in their scope and
2132	2132	8 intensity with the course of study presented in tax-supported
2133	2133	9 schools, and vocational or technical schools or institutes
2134	2134	10 organized and operated exclusively to provide a course of
2135	2135	11 study of not less than 6 weeks duration and designed to prepare
2136	2136	12 individuals to follow a trade or to pursue a manual,
2137	2137	13 technical, mechanical, industrial, business, or commercial
2138	2138	14 occupation.
2139	2139	15 (22) Beginning January 1, 2000, personal property,
2140	2140	16 including food, purchased through fundraising events for the
2141	2141	17 benefit of a public or private elementary or secondary school,
2142	2142	18 a group of those schools, or one or more school districts if
2143	2143	19 the events are sponsored by an entity recognized by the school
2144	2144	20 district that consists primarily of volunteers and includes
2145	2145	21 parents and teachers of the school children. This paragraph
2146	2146	22 does not apply to fundraising events (i) for the benefit of
2147	2147	23 private home instruction or (ii) for which the fundraising
2148	2148	24 entity purchases the personal property sold at the events from
2149	2149	25 another individual or entity that sold the property for the
2150	2150	26 purpose of resale by the fundraising entity and that profits
2151	2151
2152	2152
2153	2153
2154	2154
2155	2155
2156	2156	HB1639 - 59 - LRB104 07437 HLH 17478 b
2157	2157
2158	2158
2159	2159	HB1639- 60 -LRB104 07437 HLH 17478 b HB1639 - 60 - LRB104 07437 HLH 17478 b
2160	2160	HB1639 - 60 - LRB104 07437 HLH 17478 b
2161	2161	1 from the sale to the fundraising entity. This paragraph is
2162	2162	2 exempt from the provisions of Section 3-55.
2163	2163	3 (23) Beginning January 1, 2000 and through December 31,
2164	2164	4 2001, new or used automatic vending machines that prepare and
2165	2165	5 serve hot food and beverages, including coffee, soup, and
2166	2166	6 other items, and replacement parts for these machines.
2167	2167	7 Beginning January 1, 2002 and through June 30, 2003, machines
2168	2168	8 and parts for machines used in commercial, coin-operated
2169	2169	9 amusement and vending business if a use or occupation tax is
2170	2170	10 paid on the gross receipts derived from the use of the
2171	2171	11 commercial, coin-operated amusement and vending machines. This
2172	2172	12 paragraph is exempt from the provisions of Section 3-55.
2173	2173	13 (24) Beginning on August 2, 2001 (the effective date of
2174	2174	14 Public Act 92-227), computers and communications equipment
2175	2175	15 utilized for any hospital purpose and equipment used in the
2176	2176	16 diagnosis, analysis, or treatment of hospital patients sold to
2177	2177	17 a lessor who leases the equipment, under a lease of one year or
2178	2178	18 longer executed or in effect at the time of the purchase, to a
2179	2179	19 hospital that has been issued an active tax exemption
2180	2180	20 identification number by the Department under Section 1g of
2181	2181	21 the Retailers' Occupation Tax Act. This paragraph is exempt
2182	2182	22 from the provisions of Section 3-55.
2183	2183	23 (25) Beginning on August 2, 2001 (the effective date of
2184	2184	24 Public Act 92-227), personal property sold to a lessor who
2185	2185	25 leases the property, under a lease of one year or longer
2186	2186	26 executed or in effect at the time of the purchase, to a
2187	2187
2188	2188
2189	2189
2190	2190
2191	2191
2192	2192	HB1639 - 60 - LRB104 07437 HLH 17478 b
2193	2193
2194	2194
2195	2195	HB1639- 61 -LRB104 07437 HLH 17478 b HB1639 - 61 - LRB104 07437 HLH 17478 b
2196	2196	HB1639 - 61 - LRB104 07437 HLH 17478 b
2197	2197	1 governmental body that has been issued an active tax exemption
2198	2198	2 identification number by the Department under Section 1g of
2199	2199	3 the Retailers' Occupation Tax Act. This paragraph is exempt
2200	2200	4 from the provisions of Section 3-55.
2201	2201	5 (26) Beginning on January 1, 2002 and through June 30,
2202	2202	6 2016, tangible personal property purchased from an Illinois
2203	2203	7 retailer by a taxpayer engaged in centralized purchasing
2204	2204	8 activities in Illinois who will, upon receipt of the property
2205	2205	9 in Illinois, temporarily store the property in Illinois (i)
2206	2206	10 for the purpose of subsequently transporting it outside this
2207	2207	11 State for use or consumption thereafter solely outside this
2208	2208	12 State or (ii) for the purpose of being processed, fabricated,
2209	2209	13 or manufactured into, attached to, or incorporated into other
2210	2210	14 tangible personal property to be transported outside this
2211	2211	15 State and thereafter used or consumed solely outside this
2212	2212	16 State. The Director of Revenue shall, pursuant to rules
2213	2213	17 adopted in accordance with the Illinois Administrative
2214	2214	18 Procedure Act, issue a permit to any taxpayer in good standing
2215	2215	19 with the Department who is eligible for the exemption under
2216	2216	20 this paragraph (26). The permit issued under this paragraph
2217	2217	21 (26) shall authorize the holder, to the extent and in the
2218	2218	22 manner specified in the rules adopted under this Act, to
2219	2219	23 purchase tangible personal property from a retailer exempt
2220	2220	24 from the taxes imposed by this Act. Taxpayers shall maintain
2221	2221	25 all necessary books and records to substantiate the use and
2222	2222	26 consumption of all such tangible personal property outside of
2223	2223
2224	2224
2225	2225
2226	2226
2227	2227
2228	2228	HB1639 - 61 - LRB104 07437 HLH 17478 b
2229	2229
2230	2230
2231	2231	HB1639- 62 -LRB104 07437 HLH 17478 b HB1639 - 62 - LRB104 07437 HLH 17478 b
2232	2232	HB1639 - 62 - LRB104 07437 HLH 17478 b
2233	2233	1 the State of Illinois.
2234	2234	2 (27) Beginning January 1, 2008, tangible personal property
2235	2235	3 used in the construction or maintenance of a community water
2236	2236	4 supply, as defined under Section 3.145 of the Environmental
2237	2237	5 Protection Act, that is operated by a not-for-profit
2238	2238	6 corporation that holds a valid water supply permit issued
2239	2239	7 under Title IV of the Environmental Protection Act. This
2240	2240	8 paragraph is exempt from the provisions of Section 3-55.
2241	2241	9 (28) Tangible personal property sold to a
2242	2242	10 public-facilities corporation, as described in Section
2243	2243	11 11-65-10 of the Illinois Municipal Code, for purposes of
2244	2244	12 constructing or furnishing a municipal convention hall, but
2245	2245	13 only if the legal title to the municipal convention hall is
2246	2246	14 transferred to the municipality without any further
2247	2247	15 consideration by or on behalf of the municipality at the time
2248	2248	16 of the completion of the municipal convention hall or upon the
2249	2249	17 retirement or redemption of any bonds or other debt
2250	2250	18 instruments issued by the public-facilities corporation in
2251	2251	19 connection with the development of the municipal convention
2252	2252	20 hall. This exemption includes existing public-facilities
2253	2253	21 corporations as provided in Section 11-65-25 of the Illinois
2254	2254	22 Municipal Code. This paragraph is exempt from the provisions
2255	2255	23 of Section 3-55.
2256	2256	24 (29) Beginning January 1, 2010 and continuing through
2257	2257	25 December 31, 2029, materials, parts, equipment, components,
2258	2258	26 and furnishings incorporated into or upon an aircraft as part
2259	2259
2260	2260
2261	2261
2262	2262
2263	2263
2264	2264	HB1639 - 62 - LRB104 07437 HLH 17478 b
2265	2265
2266	2266
2267	2267	HB1639- 63 -LRB104 07437 HLH 17478 b HB1639 - 63 - LRB104 07437 HLH 17478 b
2268	2268	HB1639 - 63 - LRB104 07437 HLH 17478 b
2269	2269	1 of the modification, refurbishment, completion, replacement,
2270	2270	2 repair, or maintenance of the aircraft. This exemption
2271	2271	3 includes consumable supplies used in the modification,
2272	2272	4 refurbishment, completion, replacement, repair, and
2273	2273	5 maintenance of aircraft. However, until January 1, 2024, this
2274	2274	6 exemption excludes any materials, parts, equipment,
2275	2275	7 components, and consumable supplies used in the modification,
2276	2276	8 replacement, repair, and maintenance of aircraft engines or
2277	2277	9 power plants, whether such engines or power plants are
2278	2278	10 installed or uninstalled upon any such aircraft. "Consumable
2279	2279	11 supplies" include, but are not limited to, adhesive, tape,
2280	2280	12 sandpaper, general purpose lubricants, cleaning solution,
2281	2281	13 latex gloves, and protective films.
2282	2282	14 Beginning January 1, 2010 and continuing through December
2283	2283	15 31, 2023, this exemption applies only to the transfer of
2284	2284	16 qualifying tangible personal property incident to the
2285	2285	17 modification, refurbishment, completion, replacement, repair,
2286	2286	18 or maintenance of an aircraft by persons who (i) hold an Air
2287	2287	19 Agency Certificate and are empowered to operate an approved
2288	2288	20 repair station by the Federal Aviation Administration, (ii)
2289	2289	21 have a Class IV Rating, and (iii) conduct operations in
2290	2290	22 accordance with Part 145 of the Federal Aviation Regulations.
2291	2291	23 The exemption does not include aircraft operated by a
2292	2292	24 commercial air carrier providing scheduled passenger air
2293	2293	25 service pursuant to authority issued under Part 121 or Part
2294	2294	26 129 of the Federal Aviation Regulations. From January 1, 2024
2295	2295
2296	2296
2297	2297
2298	2298
2299	2299
2300	2300	HB1639 - 63 - LRB104 07437 HLH 17478 b
2301	2301
2302	2302
2303	2303	HB1639- 64 -LRB104 07437 HLH 17478 b HB1639 - 64 - LRB104 07437 HLH 17478 b
2304	2304	HB1639 - 64 - LRB104 07437 HLH 17478 b
2305	2305	1 through December 31, 2029, this exemption applies only to the
2306	2306	2 transfer of qualifying tangible personal property incident to:
2307	2307	3 (A) the modification, refurbishment, completion, repair,
2308	2308	4 replacement, or maintenance of an aircraft by persons who (i)
2309	2309	5 hold an Air Agency Certificate and are empowered to operate an
2310	2310	6 approved repair station by the Federal Aviation
2311	2311	7 Administration, (ii) have a Class IV Rating, and (iii) conduct
2312	2312	8 operations in accordance with Part 145 of the Federal Aviation
2313	2313	9 Regulations; and (B) the modification, replacement, repair,
2314	2314	10 and maintenance of aircraft engines or power plants without
2315	2315	11 regard to whether or not those persons meet the qualifications
2316	2316	12 of item (A).
2317	2317	13 The changes made to this paragraph (29) by Public Act
2318	2318	14 98-534 are declarative of existing law. It is the intent of the
2319	2319	15 General Assembly that the exemption under this paragraph (29)
2320	2320	16 applies continuously from January 1, 2010 through December 31,
2321	2321	17 2024; however, no claim for credit or refund is allowed for
2322	2322	18 taxes paid as a result of the disallowance of this exemption on
2323	2323	19 or after January 1, 2015 and prior to February 5, 2020 (the
2324	2324	20 effective date of Public Act 101-629).
2325	2325	21 (30) Beginning January 1, 2017 and through December 31,
2326	2326	22 2026, menstrual pads, tampons, and menstrual cups.
2327	2327	23 (31) Tangible personal property transferred to a purchaser
2328	2328	24 who is exempt from tax by operation of federal law. This
2329	2329	25 paragraph is exempt from the provisions of Section 3-55.
2330	2330	26 (32) Qualified tangible personal property used in the
2331	2331
2332	2332
2333	2333
2334	2334
2335	2335
2336	2336	HB1639 - 64 - LRB104 07437 HLH 17478 b
2337	2337
2338	2338
2339	2339	HB1639- 65 -LRB104 07437 HLH 17478 b HB1639 - 65 - LRB104 07437 HLH 17478 b
2340	2340	HB1639 - 65 - LRB104 07437 HLH 17478 b
2341	2341	1 construction or operation of a data center that has been
2342	2342	2 granted a certificate of exemption by the Department of
2343	2343	3 Commerce and Economic Opportunity, whether that tangible
2344	2344	4 personal property is purchased by the owner, operator, or
2345	2345	5 tenant of the data center or by a contractor or subcontractor
2346	2346	6 of the owner, operator, or tenant. Data centers that would
2347	2347	7 have qualified for a certificate of exemption prior to January
2348	2348	8 1, 2020 had Public Act 101-31 been in effect, may apply for and
2349	2349	9 obtain an exemption for subsequent purchases of computer
2350	2350	10 equipment or enabling software purchased or leased to upgrade,
2351	2351	11 supplement, or replace computer equipment or enabling software
2352	2352	12 purchased or leased in the original investment that would have
2353	2353	13 qualified.
2354	2354	14 The Department of Commerce and Economic Opportunity shall
2355	2355	15 grant a certificate of exemption under this item (32) to
2356	2356	16 qualified data centers as defined by Section 605-1025 of the
2357	2357	17 Department of Commerce and Economic Opportunity Law of the
2358	2358	18 Civil Administrative Code of Illinois.
2359	2359	19 For the purposes of this item (32):
2360	2360	20 "Data center" means a building or a series of
2361	2361	21 buildings rehabilitated or constructed to house working
2362	2362	22 servers in one physical location or multiple sites within
2363	2363	23 the State of Illinois.
2364	2364	24 "Qualified tangible personal property" means:
2365	2365	25 electrical systems and equipment; climate control and
2366	2366	26 chilling equipment and systems; mechanical systems and
2367	2367
2368	2368
2369	2369
2370	2370
2371	2371
2372	2372	HB1639 - 65 - LRB104 07437 HLH 17478 b
2373	2373
2374	2374
2375	2375	HB1639- 66 -LRB104 07437 HLH 17478 b HB1639 - 66 - LRB104 07437 HLH 17478 b
2376	2376	HB1639 - 66 - LRB104 07437 HLH 17478 b
2377	2377	1 equipment; monitoring and secure systems; emergency
2378	2378	2 generators; hardware; computers; servers; data storage
2379	2379	3 devices; network connectivity equipment; racks; cabinets;
2380	2380	4 telecommunications cabling infrastructure; raised floor
2381	2381	5 systems; peripheral components or systems; software;
2382	2382	6 mechanical, electrical, or plumbing systems; battery
2383	2383	7 systems; cooling systems and towers; temperature control
2384	2384	8 systems; other cabling; and other data center
2385	2385	9 infrastructure equipment and systems necessary to operate
2386	2386	10 qualified tangible personal property, including fixtures;
2387	2387	11 and component parts of any of the foregoing, including
2388	2388	12 installation, maintenance, repair, refurbishment, and
2389	2389	13 replacement of qualified tangible personal property to
2390	2390	14 generate, transform, transmit, distribute, or manage
2391	2391	15 electricity necessary to operate qualified tangible
2392	2392	16 personal property; and all other tangible personal
2393	2393	17 property that is essential to the operations of a computer
2394	2394	18 data center. The term "qualified tangible personal
2395	2395	19 property" also includes building materials physically
2396	2396	20 incorporated into the qualifying data center. To document
2397	2397	21 the exemption allowed under this Section, the retailer
2398	2398	22 must obtain from the purchaser a copy of the certificate
2399	2399	23 of eligibility issued by the Department of Commerce and
2400	2400	24 Economic Opportunity.
2401	2401	25 This item (32) is exempt from the provisions of Section
2402	2402	26 3-55.
2403	2403
2404	2404
2405	2405
2406	2406
2407	2407
2408	2408	HB1639 - 66 - LRB104 07437 HLH 17478 b
2409	2409
2410	2410
2411	2411	HB1639- 67 -LRB104 07437 HLH 17478 b HB1639 - 67 - LRB104 07437 HLH 17478 b
2412	2412	HB1639 - 67 - LRB104 07437 HLH 17478 b
2413	2413	1 (33) Beginning July 1, 2022, breast pumps, breast pump
2414	2414	2 collection and storage supplies, and breast pump kits. This
2415	2415	3 item (33) is exempt from the provisions of Section 3-55. As
2416	2416	4 used in this item (33):
2417	2417	5 "Breast pump" means an electrically controlled or
2418	2418	6 manually controlled pump device designed or marketed to be
2419	2419	7 used to express milk from a human breast during lactation,
2420	2420	8 including the pump device and any battery, AC adapter, or
2421	2421	9 other power supply unit that is used to power the pump
2422	2422	10 device and is packaged and sold with the pump device at the
2423	2423	11 time of sale.
2424	2424	12 "Breast pump collection and storage supplies" means
2425	2425	13 items of tangible personal property designed or marketed
2426	2426	14 to be used in conjunction with a breast pump to collect
2427	2427	15 milk expressed from a human breast and to store collected
2428	2428	16 milk until it is ready for consumption.
2429	2429	17 "Breast pump collection and storage supplies"
2430	2430	18 includes, but is not limited to: breast shields and breast
2431	2431	19 shield connectors; breast pump tubes and tubing adapters;
2432	2432	20 breast pump valves and membranes; backflow protectors and
2433	2433	21 backflow protector adaptors; bottles and bottle caps
2434	2434	22 specific to the operation of the breast pump; and breast
2435	2435	23 milk storage bags.
2436	2436	24 "Breast pump collection and storage supplies" does not
2437	2437	25 include: (1) bottles and bottle caps not specific to the
2438	2438	26 operation of the breast pump; (2) breast pump travel bags
2439	2439
2440	2440
2441	2441
2442	2442
2443	2443
2444	2444	HB1639 - 67 - LRB104 07437 HLH 17478 b
2445	2445
2446	2446
2447	2447	HB1639- 68 -LRB104 07437 HLH 17478 b HB1639 - 68 - LRB104 07437 HLH 17478 b
2448	2448	HB1639 - 68 - LRB104 07437 HLH 17478 b
2449	2449	1 and other similar carrying accessories, including ice
2450	2450	2 packs, labels, and other similar products; (3) breast pump
2451	2451	3 cleaning supplies; (4) nursing bras, bra pads, breast
2452	2452	4 shells, and other similar products; and (5) creams,
2453	2453	5 ointments, and other similar products that relieve
2454	2454	6 breastfeeding-related symptoms or conditions of the
2455	2455	7 breasts or nipples, unless sold as part of a breast pump
2456	2456	8 kit that is pre-packaged by the breast pump manufacturer
2457	2457	9 or distributor.
2458	2458	10 "Breast pump kit" means a kit that: (1) contains no
2459	2459	11 more than a breast pump, breast pump collection and
2460	2460	12 storage supplies, a rechargeable battery for operating the
2461	2461	13 breast pump, a breastmilk cooler, bottle stands, ice
2462	2462	14 packs, and a breast pump carrying case; and (2) is
2463	2463	15 pre-packaged as a breast pump kit by the breast pump
2464	2464	16 manufacturer or distributor.
2465	2465	17 (34) Tangible personal property sold by or on behalf of
2466	2466	18 the State Treasurer pursuant to the Revised Uniform Unclaimed
2467	2467	19 Property Act. This item (34) is exempt from the provisions of
2468	2468	20 Section 3-55.
2469	2469	21 (35) Beginning on January 1, 2024, tangible personal
2470	2470	22 property purchased by an active duty member of the armed
2471	2471	23 forces of the United States who presents valid military
2472	2472	24 identification and purchases the property using a form of
2473	2473	25 payment where the federal government is the payor. The member
2474	2474	26 of the armed forces must complete, at the point of sale, a form
2475	2475
2476	2476
2477	2477
2478	2478
2479	2479
2480	2480	HB1639 - 68 - LRB104 07437 HLH 17478 b
2481	2481
2482	2482
2483	2483	HB1639- 69 -LRB104 07437 HLH 17478 b HB1639 - 69 - LRB104 07437 HLH 17478 b
2484	2484	HB1639 - 69 - LRB104 07437 HLH 17478 b
2485	2485	1 prescribed by the Department of Revenue documenting that the
2486	2486	2 transaction is eligible for the exemption under this
2487	2487	3 paragraph. Retailers must keep the form as documentation of
2488	2488	4 the exemption in their records for a period of not less than 6
2489	2489	5 years. "Armed forces of the United States" means the United
2490	2490	6 States Army, Navy, Air Force, Space Force, Marine Corps, or
2491	2491	7 Coast Guard. This paragraph is exempt from the provisions of
2492	2492	8 Section 3-55.
2493	2493	9 (36) Beginning July 1, 2024, home-delivered meals provided
2494	2494	10 to Medicare or Medicaid recipients when payment is made by an
2495	2495	11 intermediary, such as a Medicare Administrative Contractor, a
2496	2496	12 Managed Care Organization, or a Medicare Advantage
2497	2497	13 Organization, pursuant to a government contract. This
2498	2498	14 paragraph (36) (35) is exempt from the provisions of Section
2499	2499	15 3-55.
2500	2500	16 (37) (36) Beginning on January 1, 2026, as further defined
2501	2501	17 in Section 3-10, food prepared for immediate consumption and
2502	2502	18 transferred incident to a sale of service subject to this Act
2503	2503	19 or the Service Use Tax Act by an entity licensed under the
2504	2504	20 Hospital Licensing Act, the Nursing Home Care Act, the
2505	2505	21 Assisted Living and Shared Housing Act, the ID/DD Community
2506	2506	22 Care Act, the MC/DD Act, the Specialized Mental Health
2507	2507	23 Rehabilitation Act of 2013, or the Child Care Act of 1969 or by
2508	2508	24 an entity that holds a permit issued pursuant to the Life Care
2509	2509	25 Facilities Act. This item (37) (36) is exempt from the
2510	2510	26 provisions of Section 3-55.
2511	2511
2512	2512
2513	2513
2514	2514
2515	2515
2516	2516	HB1639 - 69 - LRB104 07437 HLH 17478 b
2517	2517
2518	2518
2519	2519	HB1639- 70 -LRB104 07437 HLH 17478 b HB1639 - 70 - LRB104 07437 HLH 17478 b
2520	2520	HB1639 - 70 - LRB104 07437 HLH 17478 b
2521	2521	1 (38) (37) Beginning on January 1, 2026, as further defined
2522	2522	2 in Section 3-10, food for human consumption that is to be
2523	2523	3 consumed off the premises where it is sold (other than
2524	2524	4 alcoholic beverages, food consisting of or infused with adult
2525	2525	5 use cannabis, soft drinks, candy, and food that has been
2526	2526	6 prepared for immediate consumption). This item (38) (37) is
2527	2527	7 exempt from the provisions of Section 3-55.
2528	2528	8 (39) (36) The lease of the following tangible personal
2529	2529	9 property:
2530	2530	10 (1) computer software transferred subject to a license
2531	2531	11 that meets the following requirements:
2532	2532	12 (A) it is evidenced by a written agreement signed
2533	2533	13 by the licensor and the customer;
2534	2534	14 (i) an electronic agreement in which the
2535	2535	15 customer accepts the license by means of an
2536	2536	16 electronic signature that is verifiable and can be
2537	2537	17 authenticated and is attached to or made part of
2538	2538	18 the license will comply with this requirement;
2539	2539	19 (ii) a license agreement in which the customer
2540	2540	20 electronically accepts the terms by clicking "I
2541	2541	21 agree" does not comply with this requirement;
2542	2542	22 (B) it restricts the customer's duplication and
2543	2543	23 use of the software;
2544	2544	24 (C) it prohibits the customer from licensing,
2545	2545	25 sublicensing, or transferring the software to a third
2546	2546	26 party (except to a related party) without the
2547	2547
2548	2548
2549	2549
2550	2550
2551	2551
2552	2552	HB1639 - 70 - LRB104 07437 HLH 17478 b
2553	2553
2554	2554
2555	2555	HB1639- 71 -LRB104 07437 HLH 17478 b HB1639 - 71 - LRB104 07437 HLH 17478 b
2556	2556	HB1639 - 71 - LRB104 07437 HLH 17478 b
2557	2557	1 permission and continued control of the licensor;
2558	2558	2 (D) the licensor has a policy of providing another
2559	2559	3 copy at minimal or no charge if the customer loses or
2560	2560	4 damages the software, or of permitting the licensee to
2561	2561	5 make and keep an archival copy, and such policy is
2562	2562	6 either stated in the license agreement, supported by
2563	2563	7 the licensor's books and records, or supported by a
2564	2564	8 notarized statement made under penalties of perjury by
2565	2565	9 the licensor; and
2566	2566	10 (E) the customer must destroy or return all copies
2567	2567	11 of the software to the licensor at the end of the
2568	2568	12 license period; this provision is deemed to be met, in
2569	2569	13 the case of a perpetual license, without being set
2570	2570	14 forth in the license agreement; and
2571	2571	15 (2) property that is subject to a tax on lease
2572	2572	16 receipts imposed by a home rule unit of local government
2573	2573	17 if the ordinance imposing that tax was adopted prior to
2574	2574	18 January 1, 2023.
2575	2575	19 (40) On and after January 1, 2026, essential supplies
2576	2576	20 purchased by a day care center that has been granted a
2577	2577	21 certificate of exemption by the Department. The Department of
2578	2578	22 Children and Family Services may share information with the
2579	2579	23 Department of Revenue for the purpose of administering the
2580	2580	24 provisions of this exemption. This item (40) is exempt from
2581	2581	25 the provisions of Section 3-55.
2582	2582	26 As used in this item (40):
2583	2583
2584	2584
2585	2585
2586	2586
2587	2587
2588	2588	HB1639 - 71 - LRB104 07437 HLH 17478 b
2589	2589
2590	2590
2591	2591	HB1639- 72 -LRB104 07437 HLH 17478 b HB1639 - 72 - LRB104 07437 HLH 17478 b
2592	2592	HB1639 - 72 - LRB104 07437 HLH 17478 b
2593	2593	1 "Day care center" has the meaning given to that term in
2594	2594	2 Section 2.09 of the Child Care Act of 1969.
2595	2595	3 "Essential supplies" means items designated, by rule, as
2596	2596	4 essential supplies by the Department of Children and Family
2597	2597	5 Services, including, but not limited to: food and beverages to
2598	2598	6 be consumed by a child as a snack or meal at the day care
2599	2599	7 center, including, but not limited to, fruits and vegetables,
2600	2600	8 whole grains, proteins, water, and reduced fat or skim milk;
2601	2601	9 diapers; wipes; first aid kits; smoke detectors; nap mats; and
2602	2602	10 soap and hand sanitizer.
2603	2603	11 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
2604	2604	12 Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2605	2605	13 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
2606	2606	14 Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
2607	2607	15 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
2608	2608	16 103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
2609	2609	17 7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995,
2610	2610	18 eff. 8-9-24; revised 11-26-24.)
2611	2611	19 Section 20. The Retailers' Occupation Tax Act is amended
2612	2612	20 by changing Section 2-5 as follows:
2613	2613	21 (35 ILCS 120/2-5)
2614	2614	22 Sec. 2-5. Exemptions. Gross receipts from proceeds from
2615	2615	23 the sale, which, on and after January 1, 2025, includes the
2616	2616	24 lease, of the following tangible personal property are exempt
2617	2617
2618	2618
2619	2619
2620	2620
2621	2621
2622	2622	HB1639 - 72 - LRB104 07437 HLH 17478 b
2623	2623
2624	2624
2625	2625	HB1639- 73 -LRB104 07437 HLH 17478 b HB1639 - 73 - LRB104 07437 HLH 17478 b
2626	2626	HB1639 - 73 - LRB104 07437 HLH 17478 b
2627	2627	1 from the tax imposed by this Act:
2628	2628	2 (1) Farm chemicals.
2629	2629	3 (2) Farm machinery and equipment, both new and used,
2630	2630	4 including that manufactured on special order, certified by
2631	2631	5 the purchaser to be used primarily for production
2632	2632	6 agriculture or State or federal agricultural programs,
2633	2633	7 including individual replacement parts for the machinery
2634	2634	8 and equipment, including machinery and equipment purchased
2635	2635	9 for lease, and including implements of husbandry defined
2636	2636	10 in Section 1-130 of the Illinois Vehicle Code, farm
2637	2637	11 machinery and agricultural chemical and fertilizer
2638	2638	12 spreaders, and nurse wagons required to be registered
2639	2639	13 under Section 3-809 of the Illinois Vehicle Code, but
2640	2640	14 excluding other motor vehicles required to be registered
2641	2641	15 under the Illinois Vehicle Code. Horticultural polyhouses
2642	2642	16 or hoop houses used for propagating, growing, or
2643	2643	17 overwintering plants shall be considered farm machinery
2644	2644	18 and equipment under this item (2). Agricultural chemical
2645	2645	19 tender tanks and dry boxes shall include units sold
2646	2646	20 separately from a motor vehicle required to be licensed
2647	2647	21 and units sold mounted on a motor vehicle required to be
2648	2648	22 licensed, if the selling price of the tender is separately
2649	2649	23 stated.
2650	2650	24 Farm machinery and equipment shall include precision
2651	2651	25 farming equipment that is installed or purchased to be
2652	2652	26 installed on farm machinery and equipment including, but
2653	2653
2654	2654
2655	2655
2656	2656
2657	2657
2658	2658	HB1639 - 73 - LRB104 07437 HLH 17478 b
2659	2659
2660	2660
2661	2661	HB1639- 74 -LRB104 07437 HLH 17478 b HB1639 - 74 - LRB104 07437 HLH 17478 b
2662	2662	HB1639 - 74 - LRB104 07437 HLH 17478 b
2663	2663	1 not limited to, tractors, harvesters, sprayers, planters,
2664	2664	2 seeders, or spreaders. Precision farming equipment
2665	2665	3 includes, but is not limited to, soil testing sensors,
2666	2666	4 computers, monitors, software, global positioning and
2667	2667	5 mapping systems, and other such equipment.
2668	2668	6 Farm machinery and equipment also includes computers,
2669	2669	7 sensors, software, and related equipment used primarily in
2670	2670	8 the computer-assisted operation of production agriculture
2671	2671	9 facilities, equipment, and activities such as, but not
2672	2672	10 limited to, the collection, monitoring, and correlation of
2673	2673	11 animal and crop data for the purpose of formulating animal
2674	2674	12 diets and agricultural chemicals.
2675	2675	13 Beginning on January 1, 2024, farm machinery and
2676	2676	14 equipment also includes electrical power generation
2677	2677	15 equipment used primarily for production agriculture.
2678	2678	16 This item (2) is exempt from the provisions of Section
2679	2679	17 2-70.
2680	2680	18 (3) Until July 1, 2003, distillation machinery and
2681	2681	19 equipment, sold as a unit or kit, assembled or installed
2682	2682	20 by the retailer, certified by the user to be used only for
2683	2683	21 the production of ethyl alcohol that will be used for
2684	2684	22 consumption as motor fuel or as a component of motor fuel
2685	2685	23 for the personal use of the user, and not subject to sale
2686	2686	24 or resale.
2687	2687	25 (4) Until July 1, 2003 and beginning again September
2688	2688	26 1, 2004 through August 30, 2014, graphic arts machinery
2689	2689
2690	2690
2691	2691
2692	2692
2693	2693
2694	2694	HB1639 - 74 - LRB104 07437 HLH 17478 b
2695	2695
2696	2696
2697	2697	HB1639- 75 -LRB104 07437 HLH 17478 b HB1639 - 75 - LRB104 07437 HLH 17478 b
2698	2698	HB1639 - 75 - LRB104 07437 HLH 17478 b
2699	2699	1 and equipment, including repair and replacement parts,
2700	2700	2 both new and used, and including that manufactured on
2701	2701	3 special order or purchased for lease, certified by the
2702	2702	4 purchaser to be used primarily for graphic arts
2703	2703	5 production. Equipment includes chemicals or chemicals
2704	2704	6 acting as catalysts but only if the chemicals or chemicals
2705	2705	7 acting as catalysts effect a direct and immediate change
2706	2706	8 upon a graphic arts product. Beginning on July 1, 2017,
2707	2707	9 graphic arts machinery and equipment is included in the
2708	2708	10 manufacturing and assembling machinery and equipment
2709	2709	11 exemption under paragraph (14).
2710	2710	12 (5) A motor vehicle that is used for automobile
2711	2711	13 renting, as defined in the Automobile Renting Occupation
2712	2712	14 and Use Tax Act. This paragraph is exempt from the
2713	2713	15 provisions of Section 2-70.
2714	2714	16 (6) Personal property sold by a teacher-sponsored
2715	2715	17 student organization affiliated with an elementary or
2716	2716	18 secondary school located in Illinois.
2717	2717	19 (7) Until July 1, 2003, proceeds of that portion of
2718	2718	20 the selling price of a passenger car the sale of which is
2719	2719	21 subject to the Replacement Vehicle Tax.
2720	2720	22 (8) Personal property sold to an Illinois county fair
2721	2721	23 association for use in conducting, operating, or promoting
2722	2722	24 the county fair.
2723	2723	25 (9) Personal property sold to a not-for-profit arts or
2724	2724	26 cultural organization that establishes, by proof required
2725	2725
2726	2726
2727	2727
2728	2728
2729	2729
2730	2730	HB1639 - 75 - LRB104 07437 HLH 17478 b
2731	2731
2732	2732
2733	2733	HB1639- 76 -LRB104 07437 HLH 17478 b HB1639 - 76 - LRB104 07437 HLH 17478 b
2734	2734	HB1639 - 76 - LRB104 07437 HLH 17478 b
2735	2735	1 by the Department by rule, that it has received an
2736	2736	2 exemption under Section 501(c)(3) of the Internal Revenue
2737	2737	3 Code and that is organized and operated primarily for the
2738	2738	4 presentation or support of arts or cultural programming,
2739	2739	5 activities, or services. These organizations include, but
2740	2740	6 are not limited to, music and dramatic arts organizations
2741	2741	7 such as symphony orchestras and theatrical groups, arts
2742	2742	8 and cultural service organizations, local arts councils,
2743	2743	9 visual arts organizations, and media arts organizations.
2744	2744	10 On and after July 1, 2001 (the effective date of Public Act
2745	2745	11 92-35), however, an entity otherwise eligible for this
2746	2746	12 exemption shall not make tax-free purchases unless it has
2747	2747	13 an active identification number issued by the Department.
2748	2748	14 (10) Personal property sold by a corporation, society,
2749	2749	15 association, foundation, institution, or organization,
2750	2750	16 other than a limited liability company, that is organized
2751	2751	17 and operated as a not-for-profit service enterprise for
2752	2752	18 the benefit of persons 65 years of age or older if the
2753	2753	19 personal property was not purchased by the enterprise for
2754	2754	20 the purpose of resale by the enterprise.
2755	2755	21 (11) Except as otherwise provided in this Section,
2756	2756	22 personal property sold to a governmental body, to a
2757	2757	23 corporation, society, association, foundation, or
2758	2758	24 institution organized and operated exclusively for
2759	2759	25 charitable, religious, or educational purposes, or to a
2760	2760	26 not-for-profit corporation, society, association,
2761	2761
2762	2762
2763	2763
2764	2764
2765	2765
2766	2766	HB1639 - 76 - LRB104 07437 HLH 17478 b
2767	2767
2768	2768
2769	2769	HB1639- 77 -LRB104 07437 HLH 17478 b HB1639 - 77 - LRB104 07437 HLH 17478 b
2770	2770	HB1639 - 77 - LRB104 07437 HLH 17478 b
2771	2771	1 foundation, institution, or organization that has no
2772	2772	2 compensated officers or employees and that is organized
2773	2773	3 and operated primarily for the recreation of persons 55
2774	2774	4 years of age or older. A limited liability company may
2775	2775	5 qualify for the exemption under this paragraph only if the
2776	2776	6 limited liability company is organized and operated
2777	2777	7 exclusively for educational purposes. On and after July 1,
2778	2778	8 1987, however, no entity otherwise eligible for this
2779	2779	9 exemption shall make tax-free purchases unless it has an
2780	2780	10 active identification number issued by the Department.
2781	2781	11 (12) (Blank).
2782	2782	12 (12-5) On and after July 1, 2003 and through June 30,
2783	2783	13 2004, motor vehicles of the second division with a gross
2784	2784	14 vehicle weight in excess of 8,000 pounds that are subject
2785	2785	15 to the commercial distribution fee imposed under Section
2786	2786	16 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
2787	2787	17 2004 and through June 30, 2005, the use in this State of
2788	2788	18 motor vehicles of the second division: (i) with a gross
2789	2789	19 vehicle weight rating in excess of 8,000 pounds; (ii) that
2790	2790	20 are subject to the commercial distribution fee imposed
2791	2791	21 under Section 3-815.1 of the Illinois Vehicle Code; and
2792	2792	22 (iii) that are primarily used for commercial purposes.
2793	2793	23 Through June 30, 2005, this exemption applies to repair
2794	2794	24 and replacement parts added after the initial purchase of
2795	2795	25 such a motor vehicle if that motor vehicle is used in a
2796	2796	26 manner that would qualify for the rolling stock exemption
2797	2797
2798	2798
2799	2799
2800	2800
2801	2801
2802	2802	HB1639 - 77 - LRB104 07437 HLH 17478 b
2803	2803
2804	2804
2805	2805	HB1639- 78 -LRB104 07437 HLH 17478 b HB1639 - 78 - LRB104 07437 HLH 17478 b
2806	2806	HB1639 - 78 - LRB104 07437 HLH 17478 b
2807	2807	1 otherwise provided for in this Act. For purposes of this
2808	2808	2 paragraph, "used for commercial purposes" means the
2809	2809	3 transportation of persons or property in furtherance of
2810	2810	4 any commercial or industrial enterprise whether for-hire
2811	2811	5 or not.
2812	2812	6 (13) Proceeds from sales to owners or lessors,
2813	2813	7 lessees, or shippers of tangible personal property that is
2814	2814	8 utilized by interstate carriers for hire for use as
2815	2815	9 rolling stock moving in interstate commerce and equipment
2816	2816	10 operated by a telecommunications provider, licensed as a
2817	2817	11 common carrier by the Federal Communications Commission,
2818	2818	12 which is permanently installed in or affixed to aircraft
2819	2819	13 moving in interstate commerce.
2820	2820	14 (14) Machinery and equipment that will be used by the
2821	2821	15 purchaser, or a lessee of the purchaser, primarily in the
2822	2822	16 process of manufacturing or assembling tangible personal
2823	2823	17 property for wholesale or retail sale or lease, whether
2824	2824	18 the sale or lease is made directly by the manufacturer or
2825	2825	19 by some other person, whether the materials used in the
2826	2826	20 process are owned by the manufacturer or some other
2827	2827	21 person, or whether the sale or lease is made apart from or
2828	2828	22 as an incident to the seller's engaging in the service
2829	2829	23 occupation of producing machines, tools, dies, jigs,
2830	2830	24 patterns, gauges, or other similar items of no commercial
2831	2831	25 value on special order for a particular purchaser. The
2832	2832	26 exemption provided by this paragraph (14) does not include
2833	2833
2834	2834
2835	2835
2836	2836
2837	2837
2838	2838	HB1639 - 78 - LRB104 07437 HLH 17478 b
2839	2839
2840	2840
2841	2841	HB1639- 79 -LRB104 07437 HLH 17478 b HB1639 - 79 - LRB104 07437 HLH 17478 b
2842	2842	HB1639 - 79 - LRB104 07437 HLH 17478 b
2843	2843	1 machinery and equipment used in (i) the generation of
2844	2844	2 electricity for wholesale or retail sale; (ii) the
2845	2845	3 generation or treatment of natural or artificial gas for
2846	2846	4 wholesale or retail sale that is delivered to customers
2847	2847	5 through pipes, pipelines, or mains; or (iii) the treatment
2848	2848	6 of water for wholesale or retail sale that is delivered to
2849	2849	7 customers through pipes, pipelines, or mains. The
2850	2850	8 provisions of Public Act 98-583 are declaratory of
2851	2851	9 existing law as to the meaning and scope of this
2852	2852	10 exemption. Beginning on July 1, 2017, the exemption
2853	2853	11 provided by this paragraph (14) includes, but is not
2854	2854	12 limited to, graphic arts machinery and equipment, as
2855	2855	13 defined in paragraph (4) of this Section.
2856	2856	14 (15) Proceeds of mandatory service charges separately
2857	2857	15 stated on customers' bills for purchase and consumption of
2858	2858	16 food and beverages, to the extent that the proceeds of the
2859	2859	17 service charge are in fact turned over as tips or as a
2860	2860	18 substitute for tips to the employees who participate
2861	2861	19 directly in preparing, serving, hosting or cleaning up the
2862	2862	20 food or beverage function with respect to which the
2863	2863	21 service charge is imposed.
2864	2864	22 (16) Tangible personal property sold to a purchaser if
2865	2865	23 the purchaser is exempt from use tax by operation of
2866	2866	24 federal law. This paragraph is exempt from the provisions
2867	2867	25 of Section 2-70.
2868	2868	26 (17) Tangible personal property sold to a common
2869	2869
2870	2870
2871	2871
2872	2872
2873	2873
2874	2874	HB1639 - 79 - LRB104 07437 HLH 17478 b
2875	2875
2876	2876
2877	2877	HB1639- 80 -LRB104 07437 HLH 17478 b HB1639 - 80 - LRB104 07437 HLH 17478 b
2878	2878	HB1639 - 80 - LRB104 07437 HLH 17478 b
2879	2879	1 carrier by rail or motor that receives the physical
2880	2880	2 possession of the property in Illinois and that transports
2881	2881	3 the property, or shares with another common carrier in the
2882	2882	4 transportation of the property, out of Illinois on a
2883	2883	5 standard uniform bill of lading showing the seller of the
2884	2884	6 property as the shipper or consignor of the property to a
2885	2885	7 destination outside Illinois, for use outside Illinois.
2886	2886	8 (18) Legal tender, currency, medallions, or gold or
2887	2887	9 silver coinage issued by the State of Illinois, the
2888	2888	10 government of the United States of America, or the
2889	2889	11 government of any foreign country, and bullion.
2890	2890	12 (19) Until July 1, 2003, oil field exploration,
2891	2891	13 drilling, and production equipment, including (i) rigs and
2892	2892	14 parts of rigs, rotary rigs, cable tool rigs, and workover
2893	2893	15 rigs, (ii) pipe and tubular goods, including casing and
2894	2894	16 drill strings, (iii) pumps and pump-jack units, (iv)
2895	2895	17 storage tanks and flow lines, (v) any individual
2896	2896	18 replacement part for oil field exploration, drilling, and
2897	2897	19 production equipment, and (vi) machinery and equipment
2898	2898	20 purchased for lease; but excluding motor vehicles required
2899	2899	21 to be registered under the Illinois Vehicle Code.
2900	2900	22 (20) Photoprocessing machinery and equipment,
2901	2901	23 including repair and replacement parts, both new and used,
2902	2902	24 including that manufactured on special order, certified by
2903	2903	25 the purchaser to be used primarily for photoprocessing,
2904	2904	26 and including photoprocessing machinery and equipment
2905	2905
2906	2906
2907	2907
2908	2908
2909	2909
2910	2910	HB1639 - 80 - LRB104 07437 HLH 17478 b
2911	2911
2912	2912
2913	2913	HB1639- 81 -LRB104 07437 HLH 17478 b HB1639 - 81 - LRB104 07437 HLH 17478 b
2914	2914	HB1639 - 81 - LRB104 07437 HLH 17478 b
2915	2915	1 purchased for lease.
2916	2916	2 (21) Until July 1, 2028, coal and aggregate
2917	2917	3 exploration, mining, off-highway hauling, processing,
2918	2918	4 maintenance, and reclamation equipment, including
2919	2919	5 replacement parts and equipment, and including equipment
2920	2920	6 purchased for lease, but excluding motor vehicles required
2921	2921	7 to be registered under the Illinois Vehicle Code. The
2922	2922	8 changes made to this Section by Public Act 97-767 apply on
2923	2923	9 and after July 1, 2003, but no claim for credit or refund
2924	2924	10 is allowed on or after August 16, 2013 (the effective date
2925	2925	11 of Public Act 98-456) for such taxes paid during the
2926	2926	12 period beginning July 1, 2003 and ending on August 16,
2927	2927	13 2013 (the effective date of Public Act 98-456).
2928	2928	14 (22) Until June 30, 2013, fuel and petroleum products
2929	2929	15 sold to or used by an air carrier, certified by the carrier
2930	2930	16 to be used for consumption, shipment, or storage in the
2931	2931	17 conduct of its business as an air common carrier, for a
2932	2932	18 flight destined for or returning from a location or
2933	2933	19 locations outside the United States without regard to
2934	2934	20 previous or subsequent domestic stopovers.
2935	2935	21 Beginning July 1, 2013, fuel and petroleum products
2936	2936	22 sold to or used by an air carrier, certified by the carrier
2937	2937	23 to be used for consumption, shipment, or storage in the
2938	2938	24 conduct of its business as an air common carrier, for a
2939	2939	25 flight that (i) is engaged in foreign trade or is engaged
2940	2940	26 in trade between the United States and any of its
2941	2941
2942	2942
2943	2943
2944	2944
2945	2945
2946	2946	HB1639 - 81 - LRB104 07437 HLH 17478 b
2947	2947
2948	2948
2949	2949	HB1639- 82 -LRB104 07437 HLH 17478 b HB1639 - 82 - LRB104 07437 HLH 17478 b
2950	2950	HB1639 - 82 - LRB104 07437 HLH 17478 b
2951	2951	1 possessions and (ii) transports at least one individual or
2952	2952	2 package for hire from the city of origination to the city
2953	2953	3 of final destination on the same aircraft, without regard
2954	2954	4 to a change in the flight number of that aircraft.
2955	2955	5 (23) A transaction in which the purchase order is
2956	2956	6 received by a florist who is located outside Illinois, but
2957	2957	7 who has a florist located in Illinois deliver the property
2958	2958	8 to the purchaser or the purchaser's donee in Illinois.
2959	2959	9 (24) Fuel consumed or used in the operation of ships,
2960	2960	10 barges, or vessels that are used primarily in or for the
2961	2961	11 transportation of property or the conveyance of persons
2962	2962	12 for hire on rivers bordering on this State if the fuel is
2963	2963	13 delivered by the seller to the purchaser's barge, ship, or
2964	2964	14 vessel while it is afloat upon that bordering river.
2965	2965	15 (25) Except as provided in item (25-5) of this
2966	2966	16 Section, a motor vehicle sold in this State to a
2967	2967	17 nonresident even though the motor vehicle is delivered to
2968	2968	18 the nonresident in this State, if the motor vehicle is not
2969	2969	19 to be titled in this State, and if a drive-away permit is
2970	2970	20 issued to the motor vehicle as provided in Section 3-603
2971	2971	21 of the Illinois Vehicle Code or if the nonresident
2972	2972	22 purchaser has vehicle registration plates to transfer to
2973	2973	23 the motor vehicle upon returning to his or her home state.
2974	2974	24 The issuance of the drive-away permit or having the
2975	2975	25 out-of-state registration plates to be transferred is
2976	2976	26 prima facie evidence that the motor vehicle will not be
2977	2977
2978	2978
2979	2979
2980	2980
2981	2981
2982	2982	HB1639 - 82 - LRB104 07437 HLH 17478 b
2983	2983
2984	2984
2985	2985	HB1639- 83 -LRB104 07437 HLH 17478 b HB1639 - 83 - LRB104 07437 HLH 17478 b
2986	2986	HB1639 - 83 - LRB104 07437 HLH 17478 b
2987	2987	1 titled in this State.
2988	2988	2 (25-5) The exemption under item (25) does not apply if
2989	2989	3 the state in which the motor vehicle will be titled does
2990	2990	4 not allow a reciprocal exemption for a motor vehicle sold
2991	2991	5 and delivered in that state to an Illinois resident but
2992	2992	6 titled in Illinois. The tax collected under this Act on
2993	2993	7 the sale of a motor vehicle in this State to a resident of
2994	2994	8 another state that does not allow a reciprocal exemption
2995	2995	9 shall be imposed at a rate equal to the state's rate of tax
2996	2996	10 on taxable property in the state in which the purchaser is
2997	2997	11 a resident, except that the tax shall not exceed the tax
2998	2998	12 that would otherwise be imposed under this Act. At the
2999	2999	13 time of the sale, the purchaser shall execute a statement,
3000	3000	14 signed under penalty of perjury, of his or her intent to
3001	3001	15 title the vehicle in the state in which the purchaser is a
3002	3002	16 resident within 30 days after the sale and of the fact of
3003	3003	17 the payment to the State of Illinois of tax in an amount
3004	3004	18 equivalent to the state's rate of tax on taxable property
3005	3005	19 in his or her state of residence and shall submit the
3006	3006	20 statement to the appropriate tax collection agency in his
3007	3007	21 or her state of residence. In addition, the retailer must
3008	3008	22 retain a signed copy of the statement in his or her
3009	3009	23 records. Nothing in this item shall be construed to
3010	3010	24 require the removal of the vehicle from this state
3011	3011	25 following the filing of an intent to title the vehicle in
3012	3012	26 the purchaser's state of residence if the purchaser titles
3013	3013
3014	3014
3015	3015
3016	3016
3017	3017
3018	3018	HB1639 - 83 - LRB104 07437 HLH 17478 b
3019	3019
3020	3020
3021	3021	HB1639- 84 -LRB104 07437 HLH 17478 b HB1639 - 84 - LRB104 07437 HLH 17478 b
3022	3022	HB1639 - 84 - LRB104 07437 HLH 17478 b
3023	3023	1 the vehicle in his or her state of residence within 30 days
3024	3024	2 after the date of sale. The tax collected under this Act in
3025	3025	3 accordance with this item (25-5) shall be proportionately
3026	3026	4 distributed as if the tax were collected at the 6.25%
3027	3027	5 general rate imposed under this Act.
3028	3028	6 (25-7) Beginning on July 1, 2007, no tax is imposed
3029	3029	7 under this Act on the sale of an aircraft, as defined in
3030	3030	8 Section 3 of the Illinois Aeronautics Act, if all of the
3031	3031	9 following conditions are met:
3032	3032	10 (1) the aircraft leaves this State within 15 days
3033	3033	11 after the later of either the issuance of the final
3034	3034	12 billing for the sale of the aircraft, or the
3035	3035	13 authorized approval for return to service, completion
3036	3036	14 of the maintenance record entry, and completion of the
3037	3037	15 test flight and ground test for inspection, as
3038	3038	16 required by 14 CFR 91.407;
3039	3039	17 (2) the aircraft is not based or registered in
3040	3040	18 this State after the sale of the aircraft; and
3041	3041	19 (3) the seller retains in his or her books and
3042	3042	20 records and provides to the Department a signed and
3043	3043	21 dated certification from the purchaser, on a form
3044	3044	22 prescribed by the Department, certifying that the
3045	3045	23 requirements of this item (25-7) are met. The
3046	3046	24 certificate must also include the name and address of
3047	3047	25 the purchaser, the address of the location where the
3048	3048	26 aircraft is to be titled or registered, the address of
3049	3049
3050	3050
3051	3051
3052	3052
3053	3053
3054	3054	HB1639 - 84 - LRB104 07437 HLH 17478 b
3055	3055
3056	3056
3057	3057	HB1639- 85 -LRB104 07437 HLH 17478 b HB1639 - 85 - LRB104 07437 HLH 17478 b
3058	3058	HB1639 - 85 - LRB104 07437 HLH 17478 b
3059	3059	1 the primary physical location of the aircraft, and
3060	3060	2 other information that the Department may reasonably
3061	3061	3 require.
3062	3062	4 For purposes of this item (25-7):
3063	3063	5 "Based in this State" means hangared, stored, or
3064	3064	6 otherwise used, excluding post-sale customizations as
3065	3065	7 defined in this Section, for 10 or more days in each
3066	3066	8 12-month period immediately following the date of the sale
3067	3067	9 of the aircraft.
3068	3068	10 "Registered in this State" means an aircraft
3069	3069	11 registered with the Department of Transportation,
3070	3070	12 Aeronautics Division, or titled or registered with the
3071	3071	13 Federal Aviation Administration to an address located in
3072	3072	14 this State.
3073	3073	15 This paragraph (25-7) is exempt from the provisions of
3074	3074	16 Section 2-70.
3075	3075	17 (26) Semen used for artificial insemination of
3076	3076	18 livestock for direct agricultural production.
3077	3077	19 (27) Horses, or interests in horses, registered with
3078	3078	20 and meeting the requirements of any of the Arabian Horse
3079	3079	21 Club Registry of America, Appaloosa Horse Club, American
3080	3080	22 Quarter Horse Association, United States Trotting
3081	3081	23 Association, or Jockey Club, as appropriate, used for
3082	3082	24 purposes of breeding or racing for prizes. This item (27)
3083	3083	25 is exempt from the provisions of Section 2-70, and the
3084	3084	26 exemption provided for under this item (27) applies for
3085	3085
3086	3086
3087	3087
3088	3088
3089	3089
3090	3090	HB1639 - 85 - LRB104 07437 HLH 17478 b
3091	3091
3092	3092
3093	3093	HB1639- 86 -LRB104 07437 HLH 17478 b HB1639 - 86 - LRB104 07437 HLH 17478 b
3094	3094	HB1639 - 86 - LRB104 07437 HLH 17478 b
3095	3095	1 all periods beginning May 30, 1995, but no claim for
3096	3096	2 credit or refund is allowed on or after January 1, 2008
3097	3097	3 (the effective date of Public Act 95-88) for such taxes
3098	3098	4 paid during the period beginning May 30, 2000 and ending
3099	3099	5 on January 1, 2008 (the effective date of Public Act
3100	3100	6 95-88).
3101	3101	7 (28) Computers and communications equipment utilized
3102	3102	8 for any hospital purpose and equipment used in the
3103	3103	9 diagnosis, analysis, or treatment of hospital patients
3104	3104	10 sold to a lessor who leases the equipment, under a lease of
3105	3105	11 one year or longer executed or in effect at the time of the
3106	3106	12 purchase, to a hospital that has been issued an active tax
3107	3107	13 exemption identification number by the Department under
3108	3108	14 Section 1g of this Act.
3109	3109	15 (29) Personal property sold to a lessor who leases the
3110	3110	16 property, under a lease of one year or longer executed or
3111	3111	17 in effect at the time of the purchase, to a governmental
3112	3112	18 body that has been issued an active tax exemption
3113	3113	19 identification number by the Department under Section 1g
3114	3114	20 of this Act.
3115	3115	21 (30) Beginning with taxable years ending on or after
3116	3116	22 December 31, 1995 and ending with taxable years ending on
3117	3117	23 or before December 31, 2004, personal property that is
3118	3118	24 donated for disaster relief to be used in a State or
3119	3119	25 federally declared disaster area in Illinois or bordering
3120	3120	26 Illinois by a manufacturer or retailer that is registered
3121	3121
3122	3122
3123	3123
3124	3124
3125	3125
3126	3126	HB1639 - 86 - LRB104 07437 HLH 17478 b
3127	3127
3128	3128
3129	3129	HB1639- 87 -LRB104 07437 HLH 17478 b HB1639 - 87 - LRB104 07437 HLH 17478 b
3130	3130	HB1639 - 87 - LRB104 07437 HLH 17478 b
3131	3131	1 in this State to a corporation, society, association,
3132	3132	2 foundation, or institution that has been issued a sales
3133	3133	3 tax exemption identification number by the Department that
3134	3134	4 assists victims of the disaster who reside within the
3135	3135	5 declared disaster area.
3136	3136	6 (31) Beginning with taxable years ending on or after
3137	3137	7 December 31, 1995 and ending with taxable years ending on
3138	3138	8 or before December 31, 2004, personal property that is
3139	3139	9 used in the performance of infrastructure repairs in this
3140	3140	10 State, including, but not limited to, municipal roads and
3141	3141	11 streets, access roads, bridges, sidewalks, waste disposal
3142	3142	12 systems, water and sewer line extensions, water
3143	3143	13 distribution and purification facilities, storm water
3144	3144	14 drainage and retention facilities, and sewage treatment
3145	3145	15 facilities, resulting from a State or federally declared
3146	3146	16 disaster in Illinois or bordering Illinois when such
3147	3147	17 repairs are initiated on facilities located in the
3148	3148	18 declared disaster area within 6 months after the disaster.
3149	3149	19 (32) Beginning July 1, 1999, game or game birds sold
3150	3150	20 at a "game breeding and hunting preserve area" as that
3151	3151	21 term is used in the Wildlife Code. This paragraph is
3152	3152	22 exempt from the provisions of Section 2-70.
3153	3153	23 (33) A motor vehicle, as that term is defined in
3154	3154	24 Section 1-146 of the Illinois Vehicle Code, that is
3155	3155	25 donated to a corporation, limited liability company,
3156	3156	26 society, association, foundation, or institution that is
3157	3157
3158	3158
3159	3159
3160	3160
3161	3161
3162	3162	HB1639 - 87 - LRB104 07437 HLH 17478 b
3163	3163
3164	3164
3165	3165	HB1639- 88 -LRB104 07437 HLH 17478 b HB1639 - 88 - LRB104 07437 HLH 17478 b
3166	3166	HB1639 - 88 - LRB104 07437 HLH 17478 b
3167	3167	1 determined by the Department to be organized and operated
3168	3168	2 exclusively for educational purposes. For purposes of this
3169	3169	3 exemption, "a corporation, limited liability company,
3170	3170	4 society, association, foundation, or institution organized
3171	3171	5 and operated exclusively for educational purposes" means
3172	3172	6 all tax-supported public schools, private schools that
3173	3173	7 offer systematic instruction in useful branches of
3174	3174	8 learning by methods common to public schools and that
3175	3175	9 compare favorably in their scope and intensity with the
3176	3176	10 course of study presented in tax-supported schools, and
3177	3177	11 vocational or technical schools or institutes organized
3178	3178	12 and operated exclusively to provide a course of study of
3179	3179	13 not less than 6 weeks duration and designed to prepare
3180	3180	14 individuals to follow a trade or to pursue a manual,
3181	3181	15 technical, mechanical, industrial, business, or commercial
3182	3182	16 occupation.
3183	3183	17 (34) Beginning January 1, 2000, personal property,
3184	3184	18 including food, purchased through fundraising events for
3185	3185	19 the benefit of a public or private elementary or secondary
3186	3186	20 school, a group of those schools, or one or more school
3187	3187	21 districts if the events are sponsored by an entity
3188	3188	22 recognized by the school district that consists primarily
3189	3189	23 of volunteers and includes parents and teachers of the
3190	3190	24 school children. This paragraph does not apply to
3191	3191	25 fundraising events (i) for the benefit of private home
3192	3192	26 instruction or (ii) for which the fundraising entity
3193	3193
3194	3194
3195	3195
3196	3196
3197	3197
3198	3198	HB1639 - 88 - LRB104 07437 HLH 17478 b
3199	3199
3200	3200
3201	3201	HB1639- 89 -LRB104 07437 HLH 17478 b HB1639 - 89 - LRB104 07437 HLH 17478 b
3202	3202	HB1639 - 89 - LRB104 07437 HLH 17478 b
3203	3203	1 purchases the personal property sold at the events from
3204	3204	2 another individual or entity that sold the property for
3205	3205	3 the purpose of resale by the fundraising entity and that
3206	3206	4 profits from the sale to the fundraising entity. This
3207	3207	5 paragraph is exempt from the provisions of Section 2-70.
3208	3208	6 (35) Beginning January 1, 2000 and through December
3209	3209	7 31, 2001, new or used automatic vending machines that
3210	3210	8 prepare and serve hot food and beverages, including
3211	3211	9 coffee, soup, and other items, and replacement parts for
3212	3212	10 these machines. Beginning January 1, 2002 and through June
3213	3213	11 30, 2003, machines and parts for machines used in
3214	3214	12 commercial, coin-operated amusement and vending business
3215	3215	13 if a use or occupation tax is paid on the gross receipts
3216	3216	14 derived from the use of the commercial, coin-operated
3217	3217	15 amusement and vending machines. This paragraph is exempt
3218	3218	16 from the provisions of Section 2-70.
3219	3219	17 (35-5) Beginning August 23, 2001 and through June 30,
3220	3220	18 2016, food for human consumption that is to be consumed
3221	3221	19 off the premises where it is sold (other than alcoholic
3222	3222	20 beverages, soft drinks, and food that has been prepared
3223	3223	21 for immediate consumption) and prescription and
3224	3224	22 nonprescription medicines, drugs, medical appliances, and
3225	3225	23 insulin, urine testing materials, syringes, and needles
3226	3226	24 used by diabetics, for human use, when purchased for use
3227	3227	25 by a person receiving medical assistance under Article V
3228	3228	26 of the Illinois Public Aid Code who resides in a licensed
3229	3229
3230	3230
3231	3231
3232	3232
3233	3233
3234	3234	HB1639 - 89 - LRB104 07437 HLH 17478 b
3235	3235
3236	3236
3237	3237	HB1639- 90 -LRB104 07437 HLH 17478 b HB1639 - 90 - LRB104 07437 HLH 17478 b
3238	3238	HB1639 - 90 - LRB104 07437 HLH 17478 b
3239	3239	1 long-term care facility, as defined in the Nursing Home
3240	3240	2 Care Act, or a licensed facility as defined in the ID/DD
3241	3241	3 Community Care Act, the MC/DD Act, or the Specialized
3242	3242	4 Mental Health Rehabilitation Act of 2013.
3243	3243	5 (36) Beginning August 2, 2001, computers and
3244	3244	6 communications equipment utilized for any hospital purpose
3245	3245	7 and equipment used in the diagnosis, analysis, or
3246	3246	8 treatment of hospital patients sold to a lessor who leases
3247	3247	9 the equipment, under a lease of one year or longer
3248	3248	10 executed or in effect at the time of the purchase, to a
3249	3249	11 hospital that has been issued an active tax exemption
3250	3250	12 identification number by the Department under Section 1g
3251	3251	13 of this Act. This paragraph is exempt from the provisions
3252	3252	14 of Section 2-70.
3253	3253	15 (37) Beginning August 2, 2001, personal property sold
3254	3254	16 to a lessor who leases the property, under a lease of one
3255	3255	17 year or longer executed or in effect at the time of the
3256	3256	18 purchase, to a governmental body that has been issued an
3257	3257	19 active tax exemption identification number by the
3258	3258	20 Department under Section 1g of this Act. This paragraph is
3259	3259	21 exempt from the provisions of Section 2-70.
3260	3260	22 (38) Beginning on January 1, 2002 and through June 30,
3261	3261	23 2016, tangible personal property purchased from an
3262	3262	24 Illinois retailer by a taxpayer engaged in centralized
3263	3263	25 purchasing activities in Illinois who will, upon receipt
3264	3264	26 of the property in Illinois, temporarily store the
3265	3265
3266	3266
3267	3267
3268	3268
3269	3269
3270	3270	HB1639 - 90 - LRB104 07437 HLH 17478 b
3271	3271
3272	3272
3273	3273	HB1639- 91 -LRB104 07437 HLH 17478 b HB1639 - 91 - LRB104 07437 HLH 17478 b
3274	3274	HB1639 - 91 - LRB104 07437 HLH 17478 b
3275	3275	1 property in Illinois (i) for the purpose of subsequently
3276	3276	2 transporting it outside this State for use or consumption
3277	3277	3 thereafter solely outside this State or (ii) for the
3278	3278	4 purpose of being processed, fabricated, or manufactured
3279	3279	5 into, attached to, or incorporated into other tangible
3280	3280	6 personal property to be transported outside this State and
3281	3281	7 thereafter used or consumed solely outside this State. The
3282	3282	8 Director of Revenue shall, pursuant to rules adopted in
3283	3283	9 accordance with the Illinois Administrative Procedure Act,
3284	3284	10 issue a permit to any taxpayer in good standing with the
3285	3285	11 Department who is eligible for the exemption under this
3286	3286	12 paragraph (38). The permit issued under this paragraph
3287	3287	13 (38) shall authorize the holder, to the extent and in the
3288	3288	14 manner specified in the rules adopted under this Act, to
3289	3289	15 purchase tangible personal property from a retailer exempt
3290	3290	16 from the taxes imposed by this Act. Taxpayers shall
3291	3291	17 maintain all necessary books and records to substantiate
3292	3292	18 the use and consumption of all such tangible personal
3293	3293	19 property outside of the State of Illinois.
3294	3294	20 (39) Beginning January 1, 2008, tangible personal
3295	3295	21 property used in the construction or maintenance of a
3296	3296	22 community water supply, as defined under Section 3.145 of
3297	3297	23 the Environmental Protection Act, that is operated by a
3298	3298	24 not-for-profit corporation that holds a valid water supply
3299	3299	25 permit issued under Title IV of the Environmental
3300	3300	26 Protection Act. This paragraph is exempt from the
3301	3301
3302	3302
3303	3303
3304	3304
3305	3305
3306	3306	HB1639 - 91 - LRB104 07437 HLH 17478 b
3307	3307
3308	3308
3309	3309	HB1639- 92 -LRB104 07437 HLH 17478 b HB1639 - 92 - LRB104 07437 HLH 17478 b
3310	3310	HB1639 - 92 - LRB104 07437 HLH 17478 b
3311	3311	1 provisions of Section 2-70.
3312	3312	2 (40) Beginning January 1, 2010 and continuing through
3313	3313	3 December 31, 2029, materials, parts, equipment,
3314	3314	4 components, and furnishings incorporated into or upon an
3315	3315	5 aircraft as part of the modification, refurbishment,
3316	3316	6 completion, replacement, repair, or maintenance of the
3317	3317	7 aircraft. This exemption includes consumable supplies used
3318	3318	8 in the modification, refurbishment, completion,
3319	3319	9 replacement, repair, and maintenance of aircraft. However,
3320	3320	10 until January 1, 2024, this exemption excludes any
3321	3321	11 materials, parts, equipment, components, and consumable
3322	3322	12 supplies used in the modification, replacement, repair,
3323	3323	13 and maintenance of aircraft engines or power plants,
3324	3324	14 whether such engines or power plants are installed or
3325	3325	15 uninstalled upon any such aircraft. "Consumable supplies"
3326	3326	16 include, but are not limited to, adhesive, tape,
3327	3327	17 sandpaper, general purpose lubricants, cleaning solution,
3328	3328	18 latex gloves, and protective films.
3329	3329	19 Beginning January 1, 2010 and continuing through
3330	3330	20 December 31, 2023, this exemption applies only to the sale
3331	3331	21 of qualifying tangible personal property to persons who
3332	3332	22 modify, refurbish, complete, replace, or maintain an
3333	3333	23 aircraft and who (i) hold an Air Agency Certificate and
3334	3334	24 are empowered to operate an approved repair station by the
3335	3335	25 Federal Aviation Administration, (ii) have a Class IV
3336	3336	26 Rating, and (iii) conduct operations in accordance with
3337	3337
3338	3338
3339	3339
3340	3340
3341	3341
3342	3342	HB1639 - 92 - LRB104 07437 HLH 17478 b
3343	3343
3344	3344
3345	3345	HB1639- 93 -LRB104 07437 HLH 17478 b HB1639 - 93 - LRB104 07437 HLH 17478 b
3346	3346	HB1639 - 93 - LRB104 07437 HLH 17478 b
3347	3347	1 Part 145 of the Federal Aviation Regulations. The
3348	3348	2 exemption does not include aircraft operated by a
3349	3349	3 commercial air carrier providing scheduled passenger air
3350	3350	4 service pursuant to authority issued under Part 121 or
3351	3351	5 Part 129 of the Federal Aviation Regulations. From January
3352	3352	6 1, 2024 through December 31, 2029, this exemption applies
3353	3353	7 only to the sale of qualifying tangible personal property
3354	3354	8 to: (A) persons who modify, refurbish, complete, repair,
3355	3355	9 replace, or maintain aircraft and who (i) hold an Air
3356	3356	10 Agency Certificate and are empowered to operate an
3357	3357	11 approved repair station by the Federal Aviation
3358	3358	12 Administration, (ii) have a Class IV Rating, and (iii)
3359	3359	13 conduct operations in accordance with Part 145 of the
3360	3360	14 Federal Aviation Regulations; and (B) persons who engage
3361	3361	15 in the modification, replacement, repair, and maintenance
3362	3362	16 of aircraft engines or power plants without regard to
3363	3363	17 whether or not those persons meet the qualifications of
3364	3364	18 item (A).
3365	3365	19 The changes made to this paragraph (40) by Public Act
3366	3366	20 98-534 are declarative of existing law. It is the intent
3367	3367	21 of the General Assembly that the exemption under this
3368	3368	22 paragraph (40) applies continuously from January 1, 2010
3369	3369	23 through December 31, 2024; however, no claim for credit or
3370	3370	24 refund is allowed for taxes paid as a result of the
3371	3371	25 disallowance of this exemption on or after January 1, 2015
3372	3372	26 and prior to February 5, 2020 (the effective date of
3373	3373
3374	3374
3375	3375
3376	3376
3377	3377
3378	3378	HB1639 - 93 - LRB104 07437 HLH 17478 b
3379	3379
3380	3380
3381	3381	HB1639- 94 -LRB104 07437 HLH 17478 b HB1639 - 94 - LRB104 07437 HLH 17478 b
3382	3382	HB1639 - 94 - LRB104 07437 HLH 17478 b
3383	3383	1 Public Act 101-629).
3384	3384	2 (41) Tangible personal property sold to a
3385	3385	3 public-facilities corporation, as described in Section
3386	3386	4 11-65-10 of the Illinois Municipal Code, for purposes of
3387	3387	5 constructing or furnishing a municipal convention hall,
3388	3388	6 but only if the legal title to the municipal convention
3389	3389	7 hall is transferred to the municipality without any
3390	3390	8 further consideration by or on behalf of the municipality
3391	3391	9 at the time of the completion of the municipal convention
3392	3392	10 hall or upon the retirement or redemption of any bonds or
3393	3393	11 other debt instruments issued by the public-facilities
3394	3394	12 corporation in connection with the development of the
3395	3395	13 municipal convention hall. This exemption includes
3396	3396	14 existing public-facilities corporations as provided in
3397	3397	15 Section 11-65-25 of the Illinois Municipal Code. This
3398	3398	16 paragraph is exempt from the provisions of Section 2-70.
3399	3399	17 (42) Beginning January 1, 2017 and through December
3400	3400	18 31, 2026, menstrual pads, tampons, and menstrual cups.
3401	3401	19 (43) Merchandise that is subject to the Rental
3402	3402	20 Purchase Agreement Occupation and Use Tax. The purchaser
3403	3403	21 must certify that the item is purchased to be rented
3404	3404	22 subject to a rental-purchase agreement, as defined in the
3405	3405	23 Rental-Purchase Agreement Act, and provide proof of
3406	3406	24 registration under the Rental Purchase Agreement
3407	3407	25 Occupation and Use Tax Act. This paragraph is exempt from
3408	3408	26 the provisions of Section 2-70.
3409	3409
3410	3410
3411	3411
3412	3412
3413	3413
3414	3414	HB1639 - 94 - LRB104 07437 HLH 17478 b
3415	3415
3416	3416
3417	3417	HB1639- 95 -LRB104 07437 HLH 17478 b HB1639 - 95 - LRB104 07437 HLH 17478 b
3418	3418	HB1639 - 95 - LRB104 07437 HLH 17478 b
3419	3419	1 (44) Qualified tangible personal property used in the
3420	3420	2 construction or operation of a data center that has been
3421	3421	3 granted a certificate of exemption by the Department of
3422	3422	4 Commerce and Economic Opportunity, whether that tangible
3423	3423	5 personal property is purchased by the owner, operator, or
3424	3424	6 tenant of the data center or by a contractor or
3425	3425	7 subcontractor of the owner, operator, or tenant. Data
3426	3426	8 centers that would have qualified for a certificate of
3427	3427	9 exemption prior to January 1, 2020 had Public Act 101-31
3428	3428	10 been in effect, may apply for and obtain an exemption for
3429	3429	11 subsequent purchases of computer equipment or enabling
3430	3430	12 software purchased or leased to upgrade, supplement, or
3431	3431	13 replace computer equipment or enabling software purchased
3432	3432	14 or leased in the original investment that would have
3433	3433	15 qualified.
3434	3434	16 The Department of Commerce and Economic Opportunity
3435	3435	17 shall grant a certificate of exemption under this item
3436	3436	18 (44) to qualified data centers as defined by Section
3437	3437	19 605-1025 of the Department of Commerce and Economic
3438	3438	20 Opportunity Law of the Civil Administrative Code of
3439	3439	21 Illinois.
3440	3440	22 For the purposes of this item (44):
3441	3441	23 "Data center" means a building or a series of
3442	3442	24 buildings rehabilitated or constructed to house
3443	3443	25 working servers in one physical location or multiple
3444	3444	26 sites within the State of Illinois.
3445	3445
3446	3446
3447	3447
3448	3448
3449	3449
3450	3450	HB1639 - 95 - LRB104 07437 HLH 17478 b
3451	3451
3452	3452
3453	3453	HB1639- 96 -LRB104 07437 HLH 17478 b HB1639 - 96 - LRB104 07437 HLH 17478 b
3454	3454	HB1639 - 96 - LRB104 07437 HLH 17478 b
3455	3455	1 "Qualified tangible personal property" means:
3456	3456	2 electrical systems and equipment; climate control and
3457	3457	3 chilling equipment and systems; mechanical systems and
3458	3458	4 equipment; monitoring and secure systems; emergency
3459	3459	5 generators; hardware; computers; servers; data storage
3460	3460	6 devices; network connectivity equipment; racks;
3461	3461	7 cabinets; telecommunications cabling infrastructure;
3462	3462	8 raised floor systems; peripheral components or
3463	3463	9 systems; software; mechanical, electrical, or plumbing
3464	3464	10 systems; battery systems; cooling systems and towers;
3465	3465	11 temperature control systems; other cabling; and other
3466	3466	12 data center infrastructure equipment and systems
3467	3467	13 necessary to operate qualified tangible personal
3468	3468	14 property, including fixtures; and component parts of
3469	3469	15 any of the foregoing, including installation,
3470	3470	16 maintenance, repair, refurbishment, and replacement of
3471	3471	17 qualified tangible personal property to generate,
3472	3472	18 transform, transmit, distribute, or manage electricity
3473	3473	19 necessary to operate qualified tangible personal
3474	3474	20 property; and all other tangible personal property
3475	3475	21 that is essential to the operations of a computer data
3476	3476	22 center. The term "qualified tangible personal
3477	3477	23 property" also includes building materials physically
3478	3478	24 incorporated into the qualifying data center. To
3479	3479	25 document the exemption allowed under this Section, the
3480	3480	26 retailer must obtain from the purchaser a copy of the
3481	3481
3482	3482
3483	3483
3484	3484
3485	3485
3486	3486	HB1639 - 96 - LRB104 07437 HLH 17478 b
3487	3487
3488	3488
3489	3489	HB1639- 97 -LRB104 07437 HLH 17478 b HB1639 - 97 - LRB104 07437 HLH 17478 b
3490	3490	HB1639 - 97 - LRB104 07437 HLH 17478 b
3491	3491	1 certificate of eligibility issued by the Department of
3492	3492	2 Commerce and Economic Opportunity.
3493	3493	3 This item (44) is exempt from the provisions of
3494	3494	4 Section 2-70.
3495	3495	5 (45) Beginning January 1, 2020 and through December
3496	3496	6 31, 2020, sales of tangible personal property made by a
3497	3497	7 marketplace seller over a marketplace for which tax is due
3498	3498	8 under this Act but for which use tax has been collected and
3499	3499	9 remitted to the Department by a marketplace facilitator
3500	3500	10 under Section 2d of the Use Tax Act are exempt from tax
3501	3501	11 under this Act. A marketplace seller claiming this
3502	3502	12 exemption shall maintain books and records demonstrating
3503	3503	13 that the use tax on such sales has been collected and
3504	3504	14 remitted by a marketplace facilitator. Marketplace sellers
3505	3505	15 that have properly remitted tax under this Act on such
3506	3506	16 sales may file a claim for credit as provided in Section 6
3507	3507	17 of this Act. No claim is allowed, however, for such taxes
3508	3508	18 for which a credit or refund has been issued to the
3509	3509	19 marketplace facilitator under the Use Tax Act, or for
3510	3510	20 which the marketplace facilitator has filed a claim for
3511	3511	21 credit or refund under the Use Tax Act.
3512	3512	22 (46) Beginning July 1, 2022, breast pumps, breast pump
3513	3513	23 collection and storage supplies, and breast pump kits.
3514	3514	24 This item (46) is exempt from the provisions of Section
3515	3515	25 2-70. As used in this item (46):
3516	3516	26 "Breast pump" means an electrically controlled or
3517	3517
3518	3518
3519	3519
3520	3520
3521	3521
3522	3522	HB1639 - 97 - LRB104 07437 HLH 17478 b
3523	3523
3524	3524
3525	3525	HB1639- 98 -LRB104 07437 HLH 17478 b HB1639 - 98 - LRB104 07437 HLH 17478 b
3526	3526	HB1639 - 98 - LRB104 07437 HLH 17478 b
3527	3527	1 manually controlled pump device designed or marketed to be
3528	3528	2 used to express milk from a human breast during lactation,
3529	3529	3 including the pump device and any battery, AC adapter, or
3530	3530	4 other power supply unit that is used to power the pump
3531	3531	5 device and is packaged and sold with the pump device at the
3532	3532	6 time of sale.
3533	3533	7 "Breast pump collection and storage supplies" means
3534	3534	8 items of tangible personal property designed or marketed
3535	3535	9 to be used in conjunction with a breast pump to collect
3536	3536	10 milk expressed from a human breast and to store collected
3537	3537	11 milk until it is ready for consumption.
3538	3538	12 "Breast pump collection and storage supplies"
3539	3539	13 includes, but is not limited to: breast shields and breast
3540	3540	14 shield connectors; breast pump tubes and tubing adapters;
3541	3541	15 breast pump valves and membranes; backflow protectors and
3542	3542	16 backflow protector adaptors; bottles and bottle caps
3543	3543	17 specific to the operation of the breast pump; and breast
3544	3544	18 milk storage bags.
3545	3545	19 "Breast pump collection and storage supplies" does not
3546	3546	20 include: (1) bottles and bottle caps not specific to the
3547	3547	21 operation of the breast pump; (2) breast pump travel bags
3548	3548	22 and other similar carrying accessories, including ice
3549	3549	23 packs, labels, and other similar products; (3) breast pump
3550	3550	24 cleaning supplies; (4) nursing bras, bra pads, breast
3551	3551	25 shells, and other similar products; and (5) creams,
3552	3552	26 ointments, and other similar products that relieve
3553	3553
3554	3554
3555	3555
3556	3556
3557	3557
3558	3558	HB1639 - 98 - LRB104 07437 HLH 17478 b
3559	3559
3560	3560
3561	3561	HB1639- 99 -LRB104 07437 HLH 17478 b HB1639 - 99 - LRB104 07437 HLH 17478 b
3562	3562	HB1639 - 99 - LRB104 07437 HLH 17478 b
3563	3563	1 breastfeeding-related symptoms or conditions of the
3564	3564	2 breasts or nipples, unless sold as part of a breast pump
3565	3565	3 kit that is pre-packaged by the breast pump manufacturer
3566	3566	4 or distributor.
3567	3567	5 "Breast pump kit" means a kit that: (1) contains no
3568	3568	6 more than a breast pump, breast pump collection and
3569	3569	7 storage supplies, a rechargeable battery for operating the
3570	3570	8 breast pump, a breastmilk cooler, bottle stands, ice
3571	3571	9 packs, and a breast pump carrying case; and (2) is
3572	3572	10 pre-packaged as a breast pump kit by the breast pump
3573	3573	11 manufacturer or distributor.
3574	3574	12 (47) Tangible personal property sold by or on behalf
3575	3575	13 of the State Treasurer pursuant to the Revised Uniform
3576	3576	14 Unclaimed Property Act. This item (47) is exempt from the
3577	3577	15 provisions of Section 2-70.
3578	3578	16 (48) Beginning on January 1, 2024, tangible personal
3579	3579	17 property purchased by an active duty member of the armed
3580	3580	18 forces of the United States who presents valid military
3581	3581	19 identification and purchases the property using a form of
3582	3582	20 payment where the federal government is the payor. The
3583	3583	21 member of the armed forces must complete, at the point of
3584	3584	22 sale, a form prescribed by the Department of Revenue
3585	3585	23 documenting that the transaction is eligible for the
3586	3586	24 exemption under this paragraph. Retailers must keep the
3587	3587	25 form as documentation of the exemption in their records
3588	3588	26 for a period of not less than 6 years. "Armed forces of the
3589	3589
3590	3590
3591	3591
3592	3592
3593	3593
3594	3594	HB1639 - 99 - LRB104 07437 HLH 17478 b
3595	3595
3596	3596
3597	3597	HB1639- 100 -LRB104 07437 HLH 17478 b HB1639 - 100 - LRB104 07437 HLH 17478 b
3598	3598	HB1639 - 100 - LRB104 07437 HLH 17478 b
3599	3599	1 United States" means the United States Army, Navy, Air
3600	3600	2 Force, Space Force, Marine Corps, or Coast Guard. This
3601	3601	3 paragraph is exempt from the provisions of Section 2-70.
3602	3602	4 (49) Beginning July 1, 2024, home-delivered meals
3603	3603	5 provided to Medicare or Medicaid recipients when payment
3604	3604	6 is made by an intermediary, such as a Medicare
3605	3605	7 Administrative Contractor, a Managed Care Organization, or
3606	3606	8 a Medicare Advantage Organization, pursuant to a
3607	3607	9 government contract. This paragraph (49) is exempt from
3608	3608	10 the provisions of Section 2-70.
3609	3609	11 (50) (49) Beginning on January 1, 2026, as further
3610	3610	12 defined in Section 2-10, food for human consumption that
3611	3611	13 is to be consumed off the premises where it is sold (other
3612	3612	14 than alcoholic beverages, food consisting of or infused
3613	3613	15 with adult use cannabis, soft drinks, candy, and food that
3614	3614	16 has been prepared for immediate consumption). This item
3615	3615	17 (50) (49) is exempt from the provisions of Section 2-70.
3616	3616	18 (51) (49) Gross receipts from the lease of the
3617	3617	19 following tangible personal property:
3618	3618	20 (1) computer software transferred subject to a
3619	3619	21 license that meets the following requirements:
3620	3620	22 (A) it is evidenced by a written agreement
3621	3621	23 signed by the licensor and the customer;
3622	3622	24 (i) an electronic agreement in which the
3623	3623	25 customer accepts the license by means of an
3624	3624	26 electronic signature that is verifiable and
3625	3625
3626	3626
3627	3627
3628	3628
3629	3629
3630	3630	HB1639 - 100 - LRB104 07437 HLH 17478 b
3631	3631
3632	3632
3633	3633	HB1639- 101 -LRB104 07437 HLH 17478 b HB1639 - 101 - LRB104 07437 HLH 17478 b
3634	3634	HB1639 - 101 - LRB104 07437 HLH 17478 b
3635	3635	1 can be authenticated and is attached to or
3636	3636	2 made part of the license will comply with this
3637	3637	3 requirement;
3638	3638	4 (ii) a license agreement in which the
3639	3639	5 customer electronically accepts the terms by
3640	3640	6 clicking "I agree" does not comply with this
3641	3641	7 requirement;
3642	3642	8 (B) it restricts the customer's duplication
3643	3643	9 and use of the software;
3644	3644	10 (C) it prohibits the customer from licensing,
3645	3645	11 sublicensing, or transferring the software to a
3646	3646	12 third party (except to a related party) without
3647	3647	13 the permission and continued control of the
3648	3648	14 licensor;
3649	3649	15 (D) the licensor has a policy of providing
3650	3650	16 another copy at minimal or no charge if the
3651	3651	17 customer loses or damages the software, or of
3652	3652	18 permitting the licensee to make and keep an
3653	3653	19 archival copy, and such policy is either stated in
3654	3654	20 the license agreement, supported by the licensor's
3655	3655	21 books and records, or supported by a notarized
3656	3656	22 statement made under penalties of perjury by the
3657	3657	23 licensor; and
3658	3658	24 (E) the customer must destroy or return all
3659	3659	25 copies of the software to the licensor at the end
3660	3660	26 of the license period; this provision is deemed to
3661	3661
3662	3662
3663	3663
3664	3664
3665	3665
3666	3666	HB1639 - 101 - LRB104 07437 HLH 17478 b
3667	3667
3668	3668
3669	3669	HB1639- 102 -LRB104 07437 HLH 17478 b HB1639 - 102 - LRB104 07437 HLH 17478 b
3670	3670	HB1639 - 102 - LRB104 07437 HLH 17478 b
3671	3671	1 be met, in the case of a perpetual license,
3672	3672	2 without being set forth in the license agreement;
3673	3673	3 and
3674	3674	4 (2) property that is subject to a tax on lease
3675	3675	5 receipts imposed by a home rule unit of local
3676	3676	6 government if the ordinance imposing that tax was
3677	3677	7 adopted prior to January 1, 2023.
3678	3678	8 (52) On and after January 1, 2026, essential supplies
3679	3679	9 purchased by a day care center that has been granted a
3680	3680	10 certificate of exemption by the Department. The Department
3681	3681	11 of Children and Family Services may share information with
3682	3682	12 the Department of Revenue for the purpose of administering
3683	3683	13 the provisions of this exemption. This item (52) is exempt
3684	3684	14 from the provisions of Section 2-70.
3685	3685	15 As used in this item (52):
3686	3686	16 "Day care center" has the meaning given to that term
3687	3687	17 in Section 2.09 of the Child Care Act of 1969.
3688	3688	18 "Essential supplies" means items designated, by rule,
3689	3689	19 as essential supplies by the Department of Children and
3690	3690	20 Family Services, including, but not limited to: food and
3691	3691	21 beverages to be consumed by a child as a snack or meal at
3692	3692	22 the day care center, including, but not limited to, fruits
3693	3693	23 and vegetables, whole grains, proteins, water, and reduced
3694	3694	24 fat or skim milk; diapers; wipes; first aid kits; smoke
3695	3695	25 detectors; nap mats; and soap and hand sanitizer.
3696	3696	26 (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
3697	3697
3698	3698
3699	3699
3700	3700
3701	3701
3702	3702	HB1639 - 102 - LRB104 07437 HLH 17478 b
3703	3703
3704	3704
3705	3705	HB1639- 103 -LRB104 07437 HLH 17478 b HB1639 - 103 - LRB104 07437 HLH 17478 b
3706	3706	HB1639 - 103 - LRB104 07437 HLH 17478 b
3707	3707	1 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
3708	3708	2 Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
3709	3709	3 5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
3710	3710	4 5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
3711	3711	5 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; 103-592,
3712	3712	6 eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff. 7-1-24;
3713	3713	7 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995, eff.
3714	3714	8 8-9-24; revised 11-26-24.)
3715	3715
3716	3716
3717	3717
3718	3718
3719	3719
3720	3720	HB1639 - 103 - LRB104 07437 HLH 17478 b