Illinois 2025-2026 Regular Session

Illinois House Bill HB2509 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 HB2509 Introduced , by Rep. Jed Davis 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 materials furnished to a common interest community association pursuant to a contract entered into with the highway commissioner of a road district are exempt from the taxes imposed under those Acts. LRB104 11822 HLH 21912 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2509 Introduced , by Rep. Jed Davis 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 materials furnished to a common interest community association pursuant to a contract entered into with the highway commissioner of a road district are exempt from the taxes imposed under those Acts. LRB104 11822 HLH 21912 b LRB104 11822 HLH 21912 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2509 Introduced , by Rep. Jed Davis 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 materials furnished to a common interest community association pursuant to a contract entered into with the highway commissioner of a road district are exempt from the taxes imposed under those Acts.
9	9	LRB104 11822 HLH 21912 b LRB104 11822 HLH 21912 b
10	10	LRB104 11822 HLH 21912 b
11	11	A BILL FOR
12	12	HB2509LRB104 11822 HLH 21912 b HB2509 LRB104 11822 HLH 21912 b
13	13	HB2509 LRB104 11822 HLH 21912 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 HB2509 Introduced , by Rep. Jed Davis 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 materials furnished to a common interest community association pursuant to a contract entered into with the highway commissioner of a road district are exempt from the taxes imposed under those Acts.
47	47	LRB104 11822 HLH 21912 b LRB104 11822 HLH 21912 b
48	48	LRB104 11822 HLH 21912 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	HB2509 - 13 - LRB104 11822 HLH 21912 b
505	505
506	506
507	507	HB2509- 14 -LRB104 11822 HLH 21912 b HB2509 - 14 - LRB104 11822 HLH 21912 b
508	508	HB2509 - 14 - LRB104 11822 HLH 21912 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	HB2509 - 14 - LRB104 11822 HLH 21912 b
541	541
542	542
543	543	HB2509- 15 -LRB104 11822 HLH 21912 b HB2509 - 15 - LRB104 11822 HLH 21912 b
544	544	HB2509 - 15 - LRB104 11822 HLH 21912 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	HB2509 - 15 - LRB104 11822 HLH 21912 b
577	577
578	578
579	579	HB2509- 16 -LRB104 11822 HLH 21912 b HB2509 - 16 - LRB104 11822 HLH 21912 b
580	580	HB2509 - 16 - LRB104 11822 HLH 21912 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	HB2509 - 16 - LRB104 11822 HLH 21912 b
613	613
614	614
615	615	HB2509- 17 -LRB104 11822 HLH 21912 b HB2509 - 17 - LRB104 11822 HLH 21912 b
616	616	HB2509 - 17 - LRB104 11822 HLH 21912 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	HB2509 - 17 - LRB104 11822 HLH 21912 b
649	649
650	650
651	651	HB2509- 18 -LRB104 11822 HLH 21912 b HB2509 - 18 - LRB104 11822 HLH 21912 b
652	652	HB2509 - 18 - LRB104 11822 HLH 21912 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	HB2509 - 18 - LRB104 11822 HLH 21912 b
685	685
686	686
687	687	HB2509- 19 -LRB104 11822 HLH 21912 b HB2509 - 19 - LRB104 11822 HLH 21912 b
688	688	HB2509 - 19 - LRB104 11822 HLH 21912 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	HB2509 - 19 - LRB104 11822 HLH 21912 b
721	721
722	722
723	723	HB2509- 20 -LRB104 11822 HLH 21912 b HB2509 - 20 - LRB104 11822 HLH 21912 b
724	724	HB2509 - 20 - LRB104 11822 HLH 21912 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	HB2509 - 20 - LRB104 11822 HLH 21912 b
757	757
758	758
759	759	HB2509- 21 -LRB104 11822 HLH 21912 b HB2509 - 21 - LRB104 11822 HLH 21912 b
760	760	HB2509 - 21 - LRB104 11822 HLH 21912 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	HB2509 - 21 - LRB104 11822 HLH 21912 b
793	793
794	794
795	795	HB2509- 22 -LRB104 11822 HLH 21912 b HB2509 - 22 - LRB104 11822 HLH 21912 b
796	796	HB2509 - 22 - LRB104 11822 HLH 21912 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	HB2509 - 22 - LRB104 11822 HLH 21912 b
829	829
830	830
831	831	HB2509- 23 -LRB104 11822 HLH 21912 b HB2509 - 23 - LRB104 11822 HLH 21912 b
832	832	HB2509 - 23 - LRB104 11822 HLH 21912 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	HB2509 - 23 - LRB104 11822 HLH 21912 b
865	865
866	866
867	867	HB2509- 24 -LRB104 11822 HLH 21912 b HB2509 - 24 - LRB104 11822 HLH 21912 b
868	868	HB2509 - 24 - LRB104 11822 HLH 21912 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	HB2509 - 24 - LRB104 11822 HLH 21912 b
901	901
902	902
903	903	HB2509- 25 -LRB104 11822 HLH 21912 b HB2509 - 25 - LRB104 11822 HLH 21912 b
904	904	HB2509 - 25 - LRB104 11822 HLH 21912 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	HB2509 - 25 - LRB104 11822 HLH 21912 b
937	937
938	938
939	939	HB2509- 26 -LRB104 11822 HLH 21912 b HB2509 - 26 - LRB104 11822 HLH 21912 b
940	940	HB2509 - 26 - LRB104 11822 HLH 21912 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) Materials furnished to a common interest community
951	951	11 association pursuant to a contract entered into with the
952	952	12 highway commissioner of a road district under subsection (k)
953	953	13 of Section 1-30 of the Common Interest Community Association
954	954	14 Act. This paragraph is exempt from the provisions of Section
955	955	15 3-90.
956	956	16 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
957	957	17 Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
958	958	18 eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
959	959	19 Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
960	960	20 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
961	961	21 103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
962	962	22 7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; revised
963	963	23 11-26-24.)
964	964	24 Section 10. The Service Use Tax Act is amended by changing
965	965	25 Section 3-5 as follows:
966	966
967	967
968	968
969	969
970	970
971	971	HB2509 - 26 - LRB104 11822 HLH 21912 b
972	972
973	973
974	974	HB2509- 27 -LRB104 11822 HLH 21912 b HB2509 - 27 - LRB104 11822 HLH 21912 b
975	975	HB2509 - 27 - LRB104 11822 HLH 21912 b
976	976	1 (35 ILCS 110/3-5)
977	977	2 Sec. 3-5. Exemptions. Use of the following tangible
978	978	3 personal property is exempt from the tax imposed by this Act:
979	979	4 (1) Personal property purchased from a corporation,
980	980	5 society, association, foundation, institution, or
981	981	6 organization, other than a limited liability company, that is
982	982	7 organized and operated as a not-for-profit service enterprise
983	983	8 for the benefit of persons 65 years of age or older if the
984	984	9 personal property was not purchased by the enterprise for the
985	985	10 purpose of resale by the enterprise.
986	986	11 (2) Personal property purchased by a non-profit Illinois
987	987	12 county fair association for use in conducting, operating, or
988	988	13 promoting the county fair.
989	989	14 (3) Personal property purchased by a not-for-profit arts
990	990	15 or cultural organization that establishes, by proof required
991	991	16 by the Department by rule, that it has received an exemption
992	992	17 under Section 501(c)(3) of the Internal Revenue Code and that
993	993	18 is organized and operated primarily for the presentation or
994	994	19 support of arts or cultural programming, activities, or
995	995	20 services. These organizations include, but are not limited to,
996	996	21 music and dramatic arts organizations such as symphony
997	997	22 orchestras and theatrical groups, arts and cultural service
998	998	23 organizations, local arts councils, visual arts organizations,
999	999	24 and media arts organizations. On and after July 1, 2001 (the
1000	1000	25 effective date of Public Act 92-35), however, an entity
1001	1001
1002	1002
1003	1003
1004	1004
1005	1005
1006	1006	HB2509 - 27 - LRB104 11822 HLH 21912 b
1007	1007
1008	1008
1009	1009	HB2509- 28 -LRB104 11822 HLH 21912 b HB2509 - 28 - LRB104 11822 HLH 21912 b
1010	1010	HB2509 - 28 - LRB104 11822 HLH 21912 b
1011	1011	1 otherwise eligible for this exemption shall not make tax-free
1012	1012	2 purchases unless it has an active identification number issued
1013	1013	3 by the Department.
1014	1014	4 (4) Legal tender, currency, medallions, or gold or silver
1015	1015	5 coinage issued by the State of Illinois, the government of the
1016	1016	6 United States of America, or the government of any foreign
1017	1017	7 country, and bullion.
1018	1018	8 (5) Until July 1, 2003 and beginning again on September 1,
1019	1019	9 2004 through August 30, 2014, graphic arts machinery and
1020	1020	10 equipment, including repair and replacement parts, both new
1021	1021	11 and used, and including that manufactured on special order or
1022	1022	12 purchased for lease, certified by the purchaser to be used
1023	1023	13 primarily for graphic arts production. Equipment includes
1024	1024	14 chemicals or chemicals acting as catalysts but only if the
1025	1025	15 chemicals or chemicals acting as catalysts effect a direct and
1026	1026	16 immediate change upon a graphic arts product. Beginning on
1027	1027	17 July 1, 2017, graphic arts machinery and equipment is included
1028	1028	18 in the manufacturing and assembling machinery and equipment
1029	1029	19 exemption under Section 2 of this Act.
1030	1030	20 (6) Personal property purchased from a teacher-sponsored
1031	1031	21 student organization affiliated with an elementary or
1032	1032	22 secondary school located in Illinois.
1033	1033	23 (7) Farm machinery and equipment, both new and used,
1034	1034	24 including that manufactured on special order, certified by the
1035	1035	25 purchaser to be used primarily for production agriculture or
1036	1036	26 State or federal agricultural programs, including individual
1037	1037
1038	1038
1039	1039
1040	1040
1041	1041
1042	1042	HB2509 - 28 - LRB104 11822 HLH 21912 b
1043	1043
1044	1044
1045	1045	HB2509- 29 -LRB104 11822 HLH 21912 b HB2509 - 29 - LRB104 11822 HLH 21912 b
1046	1046	HB2509 - 29 - LRB104 11822 HLH 21912 b
1047	1047	1 replacement parts for the machinery and equipment, including
1048	1048	2 machinery and equipment purchased for lease, and including
1049	1049	3 implements of husbandry defined in Section 1-130 of the
1050	1050	4 Illinois Vehicle Code, farm machinery and agricultural
1051	1051	5 chemical and fertilizer spreaders, and nurse wagons required
1052	1052	6 to be registered under Section 3-809 of the Illinois Vehicle
1053	1053	7 Code, but excluding other motor vehicles required to be
1054	1054	8 registered under the Illinois Vehicle Code. Horticultural
1055	1055	9 polyhouses or hoop houses used for propagating, growing, or
1056	1056	10 overwintering plants shall be considered farm machinery and
1057	1057	11 equipment under this item (7). Agricultural chemical tender
1058	1058	12 tanks and dry boxes shall include units sold separately from a
1059	1059	13 motor vehicle required to be licensed and units sold mounted
1060	1060	14 on a motor vehicle required to be licensed if the selling price
1061	1061	15 of the tender is separately stated.
1062	1062	16 Farm machinery and equipment shall include precision
1063	1063	17 farming equipment that is installed or purchased to be
1064	1064	18 installed on farm machinery and equipment, including, but not
1065	1065	19 limited to, tractors, harvesters, sprayers, planters, seeders,
1066	1066	20 or spreaders. Precision farming equipment includes, but is not
1067	1067	21 limited to, soil testing sensors, computers, monitors,
1068	1068	22 software, global positioning and mapping systems, and other
1069	1069	23 such equipment.
1070	1070	24 Farm machinery and equipment also includes computers,
1071	1071	25 sensors, software, and related equipment used primarily in the
1072	1072	26 computer-assisted operation of production agriculture
1073	1073
1074	1074
1075	1075
1076	1076
1077	1077
1078	1078	HB2509 - 29 - LRB104 11822 HLH 21912 b
1079	1079
1080	1080
1081	1081	HB2509- 30 -LRB104 11822 HLH 21912 b HB2509 - 30 - LRB104 11822 HLH 21912 b
1082	1082	HB2509 - 30 - LRB104 11822 HLH 21912 b
1083	1083	1 facilities, equipment, and activities such as, but not limited
1084	1084	2 to, the collection, monitoring, and correlation of animal and
1085	1085	3 crop data for the purpose of formulating animal diets and
1086	1086	4 agricultural chemicals.
1087	1087	5 Beginning on January 1, 2024, farm machinery and equipment
1088	1088	6 also includes electrical power generation equipment used
1089	1089	7 primarily for production agriculture.
1090	1090	8 This item (7) is exempt from the provisions of Section
1091	1091	9 3-75.
1092	1092	10 (8) Until June 30, 2013, fuel and petroleum products sold
1093	1093	11 to or used by an air common carrier, certified by the carrier
1094	1094	12 to be used for consumption, shipment, or storage in the
1095	1095	13 conduct of its business as an air common carrier, for a flight
1096	1096	14 destined for or returning from a location or locations outside
1097	1097	15 the United States without regard to previous or subsequent
1098	1098	16 domestic stopovers.
1099	1099	17 Beginning July 1, 2013, fuel and petroleum products sold
1100	1100	18 to or used by an air carrier, certified by the carrier to be
1101	1101	19 used for consumption, shipment, or storage in the conduct of
1102	1102	20 its business as an air common carrier, for a flight that (i) is
1103	1103	21 engaged in foreign trade or is engaged in trade between the
1104	1104	22 United States and any of its possessions and (ii) transports
1105	1105	23 at least one individual or package for hire from the city of
1106	1106	24 origination to the city of final destination on the same
1107	1107	25 aircraft, without regard to a change in the flight number of
1108	1108	26 that aircraft.
1109	1109
1110	1110
1111	1111
1112	1112
1113	1113
1114	1114	HB2509 - 30 - LRB104 11822 HLH 21912 b
1115	1115
1116	1116
1117	1117	HB2509- 31 -LRB104 11822 HLH 21912 b HB2509 - 31 - LRB104 11822 HLH 21912 b
1118	1118	HB2509 - 31 - LRB104 11822 HLH 21912 b
1119	1119	1 (9) Proceeds of mandatory service charges separately
1120	1120	2 stated on customers' bills for the purchase and consumption of
1121	1121	3 food and beverages acquired as an incident to the purchase of a
1122	1122	4 service from a serviceman, to the extent that the proceeds of
1123	1123	5 the service charge are in fact turned over as tips or as a
1124	1124	6 substitute for tips to the employees who participate directly
1125	1125	7 in preparing, serving, hosting or cleaning up the food or
1126	1126	8 beverage function with respect to which the service charge is
1127	1127	9 imposed.
1128	1128	10 (10) Until July 1, 2003, oil field exploration, drilling,
1129	1129	11 and production equipment, including (i) rigs and parts of
1130	1130	12 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1131	1131	13 pipe and tubular goods, including casing and drill strings,
1132	1132	14 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1133	1133	15 lines, (v) any individual replacement part for oil field
1134	1134	16 exploration, drilling, and production equipment, and (vi)
1135	1135	17 machinery and equipment purchased for lease; but excluding
1136	1136	18 motor vehicles required to be registered under the Illinois
1137	1137	19 Vehicle Code.
1138	1138	20 (11) Proceeds from the sale of photoprocessing machinery
1139	1139	21 and equipment, including repair and replacement parts, both
1140	1140	22 new and used, including that manufactured on special order,
1141	1141	23 certified by the purchaser to be used primarily for
1142	1142	24 photoprocessing, and including photoprocessing machinery and
1143	1143	25 equipment purchased for lease.
1144	1144	26 (12) Until July 1, 2028, coal and aggregate exploration,
1145	1145
1146	1146
1147	1147
1148	1148
1149	1149
1150	1150	HB2509 - 31 - LRB104 11822 HLH 21912 b
1151	1151
1152	1152
1153	1153	HB2509- 32 -LRB104 11822 HLH 21912 b HB2509 - 32 - LRB104 11822 HLH 21912 b
1154	1154	HB2509 - 32 - LRB104 11822 HLH 21912 b
1155	1155	1 mining, off-highway hauling, processing, maintenance, and
1156	1156	2 reclamation equipment, including replacement parts and
1157	1157	3 equipment, and including equipment purchased for lease, but
1158	1158	4 excluding motor vehicles required to be registered under the
1159	1159	5 Illinois Vehicle Code. The changes made to this Section by
1160	1160	6 Public Act 97-767 apply on and after July 1, 2003, but no claim
1161	1161	7 for credit or refund is allowed on or after August 16, 2013
1162	1162	8 (the effective date of Public Act 98-456) for such taxes paid
1163	1163	9 during the period beginning July 1, 2003 and ending on August
1164	1164	10 16, 2013 (the effective date of Public Act 98-456).
1165	1165	11 (13) Semen used for artificial insemination of livestock
1166	1166	12 for direct agricultural production.
1167	1167	13 (14) Horses, or interests in horses, registered with and
1168	1168	14 meeting the requirements of any of the Arabian Horse Club
1169	1169	15 Registry of America, Appaloosa Horse Club, American Quarter
1170	1170	16 Horse Association, United States Trotting Association, or
1171	1171	17 Jockey Club, as appropriate, used for purposes of breeding or
1172	1172	18 racing for prizes. This item (14) is exempt from the
1173	1173	19 provisions of Section 3-75, and the exemption provided for
1174	1174	20 under this item (14) applies for all periods beginning May 30,
1175	1175	21 1995, but no claim for credit or refund is allowed on or after
1176	1176	22 January 1, 2008 (the effective date of Public Act 95-88) for
1177	1177	23 such taxes paid during the period beginning May 30, 2000 and
1178	1178	24 ending on January 1, 2008 (the effective date of Public Act
1179	1179	25 95-88).
1180	1180	26 (15) Computers and communications equipment utilized for
1181	1181
1182	1182
1183	1183
1184	1184
1185	1185
1186	1186	HB2509 - 32 - LRB104 11822 HLH 21912 b
1187	1187
1188	1188
1189	1189	HB2509- 33 -LRB104 11822 HLH 21912 b HB2509 - 33 - LRB104 11822 HLH 21912 b
1190	1190	HB2509 - 33 - LRB104 11822 HLH 21912 b
1191	1191	1 any hospital purpose and equipment used in the diagnosis,
1192	1192	2 analysis, or treatment of hospital patients purchased by a
1193	1193	3 lessor who leases the equipment, under a lease of one year or
1194	1194	4 longer executed or in effect at the time the lessor would
1195	1195	5 otherwise be subject to the tax imposed by this Act, to a
1196	1196	6 hospital that has been issued an active tax exemption
1197	1197	7 identification number by the Department under Section 1g of
1198	1198	8 the Retailers' Occupation Tax Act. If the equipment is leased
1199	1199	9 in a manner that does not qualify for this exemption or is used
1200	1200	10 in any other non-exempt manner, the lessor shall be liable for
1201	1201	11 the tax imposed under this Act or the Use Tax Act, as the case
1202	1202	12 may be, based on the fair market value of the property at the
1203	1203	13 time the non-qualifying use occurs. No lessor shall collect or
1204	1204	14 attempt to collect an amount (however designated) that
1205	1205	15 purports to reimburse that lessor for the tax imposed by this
1206	1206	16 Act or the Use Tax Act, as the case may be, if the tax has not
1207	1207	17 been paid by the lessor. If a lessor improperly collects any
1208	1208	18 such amount from the lessee, the lessee shall have a legal
1209	1209	19 right to claim a refund of that amount from the lessor. If,
1210	1210	20 however, that amount is not refunded to the lessee for any
1211	1211	21 reason, the lessor is liable to pay that amount to the
1212	1212	22 Department.
1213	1213	23 (16) Personal property purchased by a lessor who leases
1214	1214	24 the property, under a lease of one year or longer executed or
1215	1215	25 in effect at the time the lessor would otherwise be subject to
1216	1216	26 the tax imposed by this Act, to a governmental body that has
1217	1217
1218	1218
1219	1219
1220	1220
1221	1221
1222	1222	HB2509 - 33 - LRB104 11822 HLH 21912 b
1223	1223
1224	1224
1225	1225	HB2509- 34 -LRB104 11822 HLH 21912 b HB2509 - 34 - LRB104 11822 HLH 21912 b
1226	1226	HB2509 - 34 - LRB104 11822 HLH 21912 b
1227	1227	1 been issued an active tax exemption identification number by
1228	1228	2 the Department under Section 1g of the Retailers' Occupation
1229	1229	3 Tax Act. If the property is leased in a manner that does not
1230	1230	4 qualify for this exemption or is used in any other non-exempt
1231	1231	5 manner, the lessor shall be liable for the tax imposed under
1232	1232	6 this Act or the Use Tax Act, as the case may be, based on the
1233	1233	7 fair market value of the property at the time the
1234	1234	8 non-qualifying use occurs. No lessor shall collect or attempt
1235	1235	9 to collect an amount (however designated) that purports to
1236	1236	10 reimburse that lessor for the tax imposed by this Act or the
1237	1237	11 Use Tax Act, as the case may be, if the tax has not been paid
1238	1238	12 by the lessor. If a lessor improperly collects any such amount
1239	1239	13 from the lessee, the lessee shall have a legal right to claim a
1240	1240	14 refund of that amount from the lessor. If, however, that
1241	1241	15 amount is not refunded to the lessee for any reason, the lessor
1242	1242	16 is liable to pay that amount to the Department.
1243	1243	17 (17) Beginning with taxable years ending on or after
1244	1244	18 December 31, 1995 and ending with taxable years ending on or
1245	1245	19 before December 31, 2004, personal property that is donated
1246	1246	20 for disaster relief to be used in a State or federally declared
1247	1247	21 disaster area in Illinois or bordering Illinois by a
1248	1248	22 manufacturer or retailer that is registered in this State to a
1249	1249	23 corporation, society, association, foundation, or institution
1250	1250	24 that has been issued a sales tax exemption identification
1251	1251	25 number by the Department that assists victims of the disaster
1252	1252	26 who reside within the declared disaster area.
1253	1253
1254	1254
1255	1255
1256	1256
1257	1257
1258	1258	HB2509 - 34 - LRB104 11822 HLH 21912 b
1259	1259
1260	1260
1261	1261	HB2509- 35 -LRB104 11822 HLH 21912 b HB2509 - 35 - LRB104 11822 HLH 21912 b
1262	1262	HB2509 - 35 - LRB104 11822 HLH 21912 b
1263	1263	1 (18) Beginning with taxable years ending on or after
1264	1264	2 December 31, 1995 and ending with taxable years ending on or
1265	1265	3 before December 31, 2004, personal property that is used in
1266	1266	4 the performance of infrastructure repairs in this State,
1267	1267	5 including, but not limited to, municipal roads and streets,
1268	1268	6 access roads, bridges, sidewalks, waste disposal systems,
1269	1269	7 water and sewer line extensions, water distribution and
1270	1270	8 purification facilities, storm water drainage and retention
1271	1271	9 facilities, and sewage treatment facilities, resulting from a
1272	1272	10 State or federally declared disaster in Illinois or bordering
1273	1273	11 Illinois when such repairs are initiated on facilities located
1274	1274	12 in the declared disaster area within 6 months after the
1275	1275	13 disaster.
1276	1276	14 (19) Beginning July 1, 1999, game or game birds purchased
1277	1277	15 at a "game breeding and hunting preserve area" as that term is
1278	1278	16 used in the Wildlife Code. This paragraph is exempt from the
1279	1279	17 provisions of Section 3-75.
1280	1280	18 (20) A motor vehicle, as that term is defined in Section
1281	1281	19 1-146 of the Illinois Vehicle Code, that is donated to a
1282	1282	20 corporation, limited liability company, society, association,
1283	1283	21 foundation, or institution that is determined by the
1284	1284	22 Department to be organized and operated exclusively for
1285	1285	23 educational purposes. For purposes of this exemption, "a
1286	1286	24 corporation, limited liability company, society, association,
1287	1287	25 foundation, or institution organized and operated exclusively
1288	1288	26 for educational purposes" means all tax-supported public
1289	1289
1290	1290
1291	1291
1292	1292
1293	1293
1294	1294	HB2509 - 35 - LRB104 11822 HLH 21912 b
1295	1295
1296	1296
1297	1297	HB2509- 36 -LRB104 11822 HLH 21912 b HB2509 - 36 - LRB104 11822 HLH 21912 b
1298	1298	HB2509 - 36 - LRB104 11822 HLH 21912 b
1299	1299	1 schools, private schools that offer systematic instruction in
1300	1300	2 useful branches of learning by methods common to public
1301	1301	3 schools and that compare favorably in their scope and
1302	1302	4 intensity with the course of study presented in tax-supported
1303	1303	5 schools, and vocational or technical schools or institutes
1304	1304	6 organized and operated exclusively to provide a course of
1305	1305	7 study of not less than 6 weeks duration and designed to prepare
1306	1306	8 individuals to follow a trade or to pursue a manual,
1307	1307	9 technical, mechanical, industrial, business, or commercial
1308	1308	10 occupation.
1309	1309	11 (21) Beginning January 1, 2000, personal property,
1310	1310	12 including food, purchased through fundraising events for the
1311	1311	13 benefit of a public or private elementary or secondary school,
1312	1312	14 a group of those schools, or one or more school districts if
1313	1313	15 the events are sponsored by an entity recognized by the school
1314	1314	16 district that consists primarily of volunteers and includes
1315	1315	17 parents and teachers of the school children. This paragraph
1316	1316	18 does not apply to fundraising events (i) for the benefit of
1317	1317	19 private home instruction or (ii) for which the fundraising
1318	1318	20 entity purchases the personal property sold at the events from
1319	1319	21 another individual or entity that sold the property for the
1320	1320	22 purpose of resale by the fundraising entity and that profits
1321	1321	23 from the sale to the fundraising entity. This paragraph is
1322	1322	24 exempt from the provisions of Section 3-75.
1323	1323	25 (22) Beginning January 1, 2000 and through December 31,
1324	1324	26 2001, new or used automatic vending machines that prepare and
1325	1325
1326	1326
1327	1327
1328	1328
1329	1329
1330	1330	HB2509 - 36 - LRB104 11822 HLH 21912 b
1331	1331
1332	1332
1333	1333	HB2509- 37 -LRB104 11822 HLH 21912 b HB2509 - 37 - LRB104 11822 HLH 21912 b
1334	1334	HB2509 - 37 - LRB104 11822 HLH 21912 b
1335	1335	1 serve hot food and beverages, including coffee, soup, and
1336	1336	2 other items, and replacement parts for these machines.
1337	1337	3 Beginning January 1, 2002 and through June 30, 2003, machines
1338	1338	4 and parts for machines used in commercial, coin-operated
1339	1339	5 amusement and vending business if a use or occupation tax is
1340	1340	6 paid on the gross receipts derived from the use of the
1341	1341	7 commercial, coin-operated amusement and vending machines. This
1342	1342	8 paragraph is exempt from the provisions of Section 3-75.
1343	1343	9 (23) Beginning August 23, 2001 and through June 30, 2016,
1344	1344	10 food for human consumption that is to be consumed off the
1345	1345	11 premises where it is sold (other than alcoholic beverages,
1346	1346	12 soft drinks, and food that has been prepared for immediate
1347	1347	13 consumption) and prescription and nonprescription medicines,
1348	1348	14 drugs, medical appliances, and insulin, urine testing
1349	1349	15 materials, syringes, and needles used by diabetics, for human
1350	1350	16 use, when purchased for use by a person receiving medical
1351	1351	17 assistance under Article V of the Illinois Public Aid Code who
1352	1352	18 resides in a licensed long-term care facility, as defined in
1353	1353	19 the Nursing Home Care Act, or in a licensed facility as defined
1354	1354	20 in the ID/DD Community Care Act, the MC/DD Act, or the
1355	1355	21 Specialized Mental Health Rehabilitation Act of 2013.
1356	1356	22 (24) Beginning on August 2, 2001 (the effective date of
1357	1357	23 Public Act 92-227), computers and communications equipment
1358	1358	24 utilized for any hospital purpose and equipment used in the
1359	1359	25 diagnosis, analysis, or treatment of hospital patients
1360	1360	26 purchased by a lessor who leases the equipment, under a lease
1361	1361
1362	1362
1363	1363
1364	1364
1365	1365
1366	1366	HB2509 - 37 - LRB104 11822 HLH 21912 b
1367	1367
1368	1368
1369	1369	HB2509- 38 -LRB104 11822 HLH 21912 b HB2509 - 38 - LRB104 11822 HLH 21912 b
1370	1370	HB2509 - 38 - LRB104 11822 HLH 21912 b
1371	1371	1 of one year or longer executed or in effect at the time the
1372	1372	2 lessor would otherwise be subject to the tax imposed by this
1373	1373	3 Act, to a hospital that has been issued an active tax exemption
1374	1374	4 identification number by the Department under Section 1g of
1375	1375	5 the Retailers' Occupation Tax Act. If the equipment is leased
1376	1376	6 in a manner that does not qualify for this exemption or is used
1377	1377	7 in any other nonexempt manner, the lessor shall be liable for
1378	1378	8 the tax imposed under this Act or the Use Tax Act, as the case
1379	1379	9 may be, based on the fair market value of the property at the
1380	1380	10 time the nonqualifying use occurs. No lessor shall collect or
1381	1381	11 attempt to collect an amount (however designated) that
1382	1382	12 purports to reimburse that lessor for the tax imposed by this
1383	1383	13 Act or the Use Tax Act, as the case may be, if the tax has not
1384	1384	14 been paid by the lessor. If a lessor improperly collects any
1385	1385	15 such amount from the lessee, the lessee shall have a legal
1386	1386	16 right to claim a refund of that amount from the lessor. If,
1387	1387	17 however, that amount is not refunded to the lessee for any
1388	1388	18 reason, the lessor is liable to pay that amount to the
1389	1389	19 Department. This paragraph is exempt from the provisions of
1390	1390	20 Section 3-75.
1391	1391	21 (25) Beginning on August 2, 2001 (the effective date of
1392	1392	22 Public Act 92-227), personal property purchased by a lessor
1393	1393	23 who leases the property, under a lease of one year or longer
1394	1394	24 executed or in effect at the time the lessor would otherwise be
1395	1395	25 subject to the tax imposed by this Act, to a governmental body
1396	1396	26 that has been issued an active tax exemption identification
1397	1397
1398	1398
1399	1399
1400	1400
1401	1401
1402	1402	HB2509 - 38 - LRB104 11822 HLH 21912 b
1403	1403
1404	1404
1405	1405	HB2509- 39 -LRB104 11822 HLH 21912 b HB2509 - 39 - LRB104 11822 HLH 21912 b
1406	1406	HB2509 - 39 - LRB104 11822 HLH 21912 b
1407	1407	1 number by the Department under Section 1g of the Retailers'
1408	1408	2 Occupation Tax Act. If the property is leased in a manner that
1409	1409	3 does not qualify for this exemption or is used in any other
1410	1410	4 nonexempt manner, the lessor shall be liable for the tax
1411	1411	5 imposed under this Act or the Use Tax Act, as the case may be,
1412	1412	6 based on the fair market value of the property at the time the
1413	1413	7 nonqualifying use occurs. No lessor shall collect or attempt
1414	1414	8 to collect an amount (however designated) that purports to
1415	1415	9 reimburse that lessor for the tax imposed by this Act or the
1416	1416	10 Use Tax Act, as the case may be, if the tax has not been paid
1417	1417	11 by the lessor. If a lessor improperly collects any such amount
1418	1418	12 from the lessee, the lessee shall have a legal right to claim a
1419	1419	13 refund of that amount from the lessor. If, however, that
1420	1420	14 amount is not refunded to the lessee for any reason, the lessor
1421	1421	15 is liable to pay that amount to the Department. This paragraph
1422	1422	16 is exempt from the provisions of Section 3-75.
1423	1423	17 (26) Beginning January 1, 2008, tangible personal property
1424	1424	18 used in the construction or maintenance of a community water
1425	1425	19 supply, as defined under Section 3.145 of the Environmental
1426	1426	20 Protection Act, that is operated by a not-for-profit
1427	1427	21 corporation that holds a valid water supply permit issued
1428	1428	22 under Title IV of the Environmental Protection Act. This
1429	1429	23 paragraph is exempt from the provisions of Section 3-75.
1430	1430	24 (27) Beginning January 1, 2010 and continuing through
1431	1431	25 December 31, 2029, materials, parts, equipment, components,
1432	1432	26 and furnishings incorporated into or upon an aircraft as part
1433	1433
1434	1434
1435	1435
1436	1436
1437	1437
1438	1438	HB2509 - 39 - LRB104 11822 HLH 21912 b
1439	1439
1440	1440
1441	1441	HB2509- 40 -LRB104 11822 HLH 21912 b HB2509 - 40 - LRB104 11822 HLH 21912 b
1442	1442	HB2509 - 40 - LRB104 11822 HLH 21912 b
1443	1443	1 of the modification, refurbishment, completion, replacement,
1444	1444	2 repair, or maintenance of the aircraft. This exemption
1445	1445	3 includes consumable supplies used in the modification,
1446	1446	4 refurbishment, completion, replacement, repair, and
1447	1447	5 maintenance of aircraft. However, until January 1, 2024, this
1448	1448	6 exemption excludes any materials, parts, equipment,
1449	1449	7 components, and consumable supplies used in the modification,
1450	1450	8 replacement, repair, and maintenance of aircraft engines or
1451	1451	9 power plants, whether such engines or power plants are
1452	1452	10 installed or uninstalled upon any such aircraft. "Consumable
1453	1453	11 supplies" include, but are not limited to, adhesive, tape,
1454	1454	12 sandpaper, general purpose lubricants, cleaning solution,
1455	1455	13 latex gloves, and protective films.
1456	1456	14 Beginning January 1, 2010 and continuing through December
1457	1457	15 31, 2023, this exemption applies only to the use of qualifying
1458	1458	16 tangible personal property transferred incident to the
1459	1459	17 modification, refurbishment, completion, replacement, repair,
1460	1460	18 or maintenance of aircraft by persons who (i) hold an Air
1461	1461	19 Agency Certificate and are empowered to operate an approved
1462	1462	20 repair station by the Federal Aviation Administration, (ii)
1463	1463	21 have a Class IV Rating, and (iii) conduct operations in
1464	1464	22 accordance with Part 145 of the Federal Aviation Regulations.
1465	1465	23 From January 1, 2024 through December 31, 2029, this exemption
1466	1466	24 applies only to the use of qualifying tangible personal
1467	1467	25 property transferred incident to: (A) the modification,
1468	1468	26 refurbishment, completion, repair, replacement, or maintenance
1469	1469
1470	1470
1471	1471
1472	1472
1473	1473
1474	1474	HB2509 - 40 - LRB104 11822 HLH 21912 b
1475	1475
1476	1476
1477	1477	HB2509- 41 -LRB104 11822 HLH 21912 b HB2509 - 41 - LRB104 11822 HLH 21912 b
1478	1478	HB2509 - 41 - LRB104 11822 HLH 21912 b
1479	1479	1 of an aircraft by persons who (i) hold an Air Agency
1480	1480	2 Certificate and are empowered to operate an approved repair
1481	1481	3 station by the Federal Aviation Administration, (ii) have a
1482	1482	4 Class IV Rating, and (iii) conduct operations in accordance
1483	1483	5 with Part 145 of the Federal Aviation Regulations; and (B) the
1484	1484	6 modification, replacement, repair, and maintenance of aircraft
1485	1485	7 engines or power plants without regard to whether or not those
1486	1486	8 persons meet the qualifications of item (A).
1487	1487	9 The exemption does not include aircraft operated by a
1488	1488	10 commercial air carrier providing scheduled passenger air
1489	1489	11 service pursuant to authority issued under Part 121 or Part
1490	1490	12 129 of the Federal Aviation Regulations. The changes made to
1491	1491	13 this paragraph (27) by Public Act 98-534 are declarative of
1492	1492	14 existing law. It is the intent of the General Assembly that the
1493	1493	15 exemption under this paragraph (27) applies continuously from
1494	1494	16 January 1, 2010 through December 31, 2024; however, no claim
1495	1495	17 for credit or refund is allowed for taxes paid as a result of
1496	1496	18 the disallowance of this exemption on or after January 1, 2015
1497	1497	19 and prior to February 5, 2020 (the effective date of Public Act
1498	1498	20 101-629).
1499	1499	21 (28) Tangible personal property purchased by a
1500	1500	22 public-facilities corporation, as described in Section
1501	1501	23 11-65-10 of the Illinois Municipal Code, for purposes of
1502	1502	24 constructing or furnishing a municipal convention hall, but
1503	1503	25 only if the legal title to the municipal convention hall is
1504	1504	26 transferred to the municipality without any further
1505	1505
1506	1506
1507	1507
1508	1508
1509	1509
1510	1510	HB2509 - 41 - LRB104 11822 HLH 21912 b
1511	1511
1512	1512
1513	1513	HB2509- 42 -LRB104 11822 HLH 21912 b HB2509 - 42 - LRB104 11822 HLH 21912 b
1514	1514	HB2509 - 42 - LRB104 11822 HLH 21912 b
1515	1515	1 consideration by or on behalf of the municipality at the time
1516	1516	2 of the completion of the municipal convention hall or upon the
1517	1517	3 retirement or redemption of any bonds or other debt
1518	1518	4 instruments issued by the public-facilities corporation in
1519	1519	5 connection with the development of the municipal convention
1520	1520	6 hall. This exemption includes existing public-facilities
1521	1521	7 corporations as provided in Section 11-65-25 of the Illinois
1522	1522	8 Municipal Code. This paragraph is exempt from the provisions
1523	1523	9 of Section 3-75.
1524	1524	10 (29) Beginning January 1, 2017 and through December 31,
1525	1525	11 2026, menstrual pads, tampons, and menstrual cups.
1526	1526	12 (30) Tangible personal property transferred to a purchaser
1527	1527	13 who is exempt from the tax imposed by this Act by operation of
1528	1528	14 federal law. This paragraph is exempt from the provisions of
1529	1529	15 Section 3-75.
1530	1530	16 (31) Qualified tangible personal property used in the
1531	1531	17 construction or operation of a data center that has been
1532	1532	18 granted a certificate of exemption by the Department of
1533	1533	19 Commerce and Economic Opportunity, whether that tangible
1534	1534	20 personal property is purchased by the owner, operator, or
1535	1535	21 tenant of the data center or by a contractor or subcontractor
1536	1536	22 of the owner, operator, or tenant. Data centers that would
1537	1537	23 have qualified for a certificate of exemption prior to January
1538	1538	24 1, 2020 had Public Act 101-31 been in effect, may apply for and
1539	1539	25 obtain an exemption for subsequent purchases of computer
1540	1540	26 equipment or enabling software purchased or leased to upgrade,
1541	1541
1542	1542
1543	1543
1544	1544
1545	1545
1546	1546	HB2509 - 42 - LRB104 11822 HLH 21912 b
1547	1547
1548	1548
1549	1549	HB2509- 43 -LRB104 11822 HLH 21912 b HB2509 - 43 - LRB104 11822 HLH 21912 b
1550	1550	HB2509 - 43 - LRB104 11822 HLH 21912 b
1551	1551	1 supplement, or replace computer equipment or enabling software
1552	1552	2 purchased or leased in the original investment that would have
1553	1553	3 qualified.
1554	1554	4 The Department of Commerce and Economic Opportunity shall
1555	1555	5 grant a certificate of exemption under this item (31) to
1556	1556	6 qualified data centers as defined by Section 605-1025 of the
1557	1557	7 Department of Commerce and Economic Opportunity Law of the
1558	1558	8 Civil Administrative Code of Illinois.
1559	1559	9 For the purposes of this item (31):
1560	1560	10 "Data center" means a building or a series of
1561	1561	11 buildings rehabilitated or constructed to house working
1562	1562	12 servers in one physical location or multiple sites within
1563	1563	13 the State of Illinois.
1564	1564	14 "Qualified tangible personal property" means:
1565	1565	15 electrical systems and equipment; climate control and
1566	1566	16 chilling equipment and systems; mechanical systems and
1567	1567	17 equipment; monitoring and secure systems; emergency
1568	1568	18 generators; hardware; computers; servers; data storage
1569	1569	19 devices; network connectivity equipment; racks; cabinets;
1570	1570	20 telecommunications cabling infrastructure; raised floor
1571	1571	21 systems; peripheral components or systems; software;
1572	1572	22 mechanical, electrical, or plumbing systems; battery
1573	1573	23 systems; cooling systems and towers; temperature control
1574	1574	24 systems; other cabling; and other data center
1575	1575	25 infrastructure equipment and systems necessary to operate
1576	1576	26 qualified tangible personal property, including fixtures;
1577	1577
1578	1578
1579	1579
1580	1580
1581	1581
1582	1582	HB2509 - 43 - LRB104 11822 HLH 21912 b
1583	1583
1584	1584
1585	1585	HB2509- 44 -LRB104 11822 HLH 21912 b HB2509 - 44 - LRB104 11822 HLH 21912 b
1586	1586	HB2509 - 44 - LRB104 11822 HLH 21912 b
1587	1587	1 and component parts of any of the foregoing, including
1588	1588	2 installation, maintenance, repair, refurbishment, and
1589	1589	3 replacement of qualified tangible personal property to
1590	1590	4 generate, transform, transmit, distribute, or manage
1591	1591	5 electricity necessary to operate qualified tangible
1592	1592	6 personal property; and all other tangible personal
1593	1593	7 property that is essential to the operations of a computer
1594	1594	8 data center. The term "qualified tangible personal
1595	1595	9 property" also includes building materials physically
1596	1596	10 incorporated into the qualifying data center. To document
1597	1597	11 the exemption allowed under this Section, the retailer
1598	1598	12 must obtain from the purchaser a copy of the certificate
1599	1599	13 of eligibility issued by the Department of Commerce and
1600	1600	14 Economic Opportunity.
1601	1601	15 This item (31) is exempt from the provisions of Section
1602	1602	16 3-75.
1603	1603	17 (32) Beginning July 1, 2022, breast pumps, breast pump
1604	1604	18 collection and storage supplies, and breast pump kits. This
1605	1605	19 item (32) is exempt from the provisions of Section 3-75. As
1606	1606	20 used in this item (32):
1607	1607	21 "Breast pump" means an electrically controlled or
1608	1608	22 manually controlled pump device designed or marketed to be
1609	1609	23 used to express milk from a human breast during lactation,
1610	1610	24 including the pump device and any battery, AC adapter, or
1611	1611	25 other power supply unit that is used to power the pump
1612	1612	26 device and is packaged and sold with the pump device at the
1613	1613
1614	1614
1615	1615
1616	1616
1617	1617
1618	1618	HB2509 - 44 - LRB104 11822 HLH 21912 b
1619	1619
1620	1620
1621	1621	HB2509- 45 -LRB104 11822 HLH 21912 b HB2509 - 45 - LRB104 11822 HLH 21912 b
1622	1622	HB2509 - 45 - LRB104 11822 HLH 21912 b
1623	1623	1 time of sale.
1624	1624	2 "Breast pump collection and storage supplies" means
1625	1625	3 items of tangible personal property designed or marketed
1626	1626	4 to be used in conjunction with a breast pump to collect
1627	1627	5 milk expressed from a human breast and to store collected
1628	1628	6 milk until it is ready for consumption.
1629	1629	7 "Breast pump collection and storage supplies"
1630	1630	8 includes, but is not limited to: breast shields and breast
1631	1631	9 shield connectors; breast pump tubes and tubing adapters;
1632	1632	10 breast pump valves and membranes; backflow protectors and
1633	1633	11 backflow protector adaptors; bottles and bottle caps
1634	1634	12 specific to the operation of the breast pump; and breast
1635	1635	13 milk storage bags.
1636	1636	14 "Breast pump collection and storage supplies" does not
1637	1637	15 include: (1) bottles and bottle caps not specific to the
1638	1638	16 operation of the breast pump; (2) breast pump travel bags
1639	1639	17 and other similar carrying accessories, including ice
1640	1640	18 packs, labels, and other similar products; (3) breast pump
1641	1641	19 cleaning supplies; (4) nursing bras, bra pads, breast
1642	1642	20 shells, and other similar products; and (5) creams,
1643	1643	21 ointments, and other similar products that relieve
1644	1644	22 breastfeeding-related symptoms or conditions of the
1645	1645	23 breasts or nipples, unless sold as part of a breast pump
1646	1646	24 kit that is pre-packaged by the breast pump manufacturer
1647	1647	25 or distributor.
1648	1648	26 "Breast pump kit" means a kit that: (1) contains no
1649	1649
1650	1650
1651	1651
1652	1652
1653	1653
1654	1654	HB2509 - 45 - LRB104 11822 HLH 21912 b
1655	1655
1656	1656
1657	1657	HB2509- 46 -LRB104 11822 HLH 21912 b HB2509 - 46 - LRB104 11822 HLH 21912 b
1658	1658	HB2509 - 46 - LRB104 11822 HLH 21912 b
1659	1659	1 more than a breast pump, breast pump collection and
1660	1660	2 storage supplies, a rechargeable battery for operating the
1661	1661	3 breast pump, a breastmilk cooler, bottle stands, ice
1662	1662	4 packs, and a breast pump carrying case; and (2) is
1663	1663	5 pre-packaged as a breast pump kit by the breast pump
1664	1664	6 manufacturer or distributor.
1665	1665	7 (33) Tangible personal property sold by or on behalf of
1666	1666	8 the State Treasurer pursuant to the Revised Uniform Unclaimed
1667	1667	9 Property Act. This item (33) is exempt from the provisions of
1668	1668	10 Section 3-75.
1669	1669	11 (34) Beginning on January 1, 2024, tangible personal
1670	1670	12 property purchased by an active duty member of the armed
1671	1671	13 forces of the United States who presents valid military
1672	1672	14 identification and purchases the property using a form of
1673	1673	15 payment where the federal government is the payor. The member
1674	1674	16 of the armed forces must complete, at the point of sale, a form
1675	1675	17 prescribed by the Department of Revenue documenting that the
1676	1676	18 transaction is eligible for the exemption under this
1677	1677	19 paragraph. Retailers must keep the form as documentation of
1678	1678	20 the exemption in their records for a period of not less than 6
1679	1679	21 years. "Armed forces of the United States" means the United
1680	1680	22 States Army, Navy, Air Force, Space Force, Marine Corps, or
1681	1681	23 Coast Guard. This paragraph is exempt from the provisions of
1682	1682	24 Section 3-75.
1683	1683	25 (35) Beginning July 1, 2024, home-delivered meals provided
1684	1684	26 to Medicare or Medicaid recipients when payment is made by an
1685	1685
1686	1686
1687	1687
1688	1688
1689	1689
1690	1690	HB2509 - 46 - LRB104 11822 HLH 21912 b
1691	1691
1692	1692
1693	1693	HB2509- 47 -LRB104 11822 HLH 21912 b HB2509 - 47 - LRB104 11822 HLH 21912 b
1694	1694	HB2509 - 47 - LRB104 11822 HLH 21912 b
1695	1695	1 intermediary, such as a Medicare Administrative Contractor, a
1696	1696	2 Managed Care Organization, or a Medicare Advantage
1697	1697	3 Organization, pursuant to a government contract. This
1698	1698	4 paragraph (35) is exempt from the provisions of Section 3-75.
1699	1699	5 (36) (35) Beginning on January 1, 2026, as further defined
1700	1700	6 in Section 3-10, food prepared for immediate consumption and
1701	1701	7 transferred incident to a sale of service subject to this Act
1702	1702	8 or the Service Occupation Tax Act by an entity licensed under
1703	1703	9 the Hospital Licensing Act, the Nursing Home Care Act, the
1704	1704	10 Assisted Living and Shared Housing Act, the ID/DD Community
1705	1705	11 Care Act, the MC/DD Act, the Specialized Mental Health
1706	1706	12 Rehabilitation Act of 2013, or the Child Care Act of 1969, or
1707	1707	13 by an entity that holds a permit issued pursuant to the Life
1708	1708	14 Care Facilities Act. This item (36) (35) is exempt from the
1709	1709	15 provisions of Section 3-75.
1710	1710	16 (37) (36) Beginning on January 1, 2026, as further defined
1711	1711	17 in Section 3-10, food for human consumption that is to be
1712	1712	18 consumed off the premises where it is sold (other than
1713	1713	19 alcoholic beverages, food consisting of or infused with adult
1714	1714	20 use cannabis, soft drinks, candy, and food that has been
1715	1715	21 prepared for immediate consumption). This item (37) (36) is
1716	1716	22 exempt from the provisions of Section 3-75.
1717	1717	23 (38) (35) Use by a lessee of the following leased tangible
1718	1718	24 personal property:
1719	1719	25 (1) software transferred subject to a license that
1720	1720	26 meets the following requirements:
1721	1721
1722	1722
1723	1723
1724	1724
1725	1725
1726	1726	HB2509 - 47 - LRB104 11822 HLH 21912 b
1727	1727
1728	1728
1729	1729	HB2509- 48 -LRB104 11822 HLH 21912 b HB2509 - 48 - LRB104 11822 HLH 21912 b
1730	1730	HB2509 - 48 - LRB104 11822 HLH 21912 b
1731	1731	1 (A) it is evidenced by a written agreement signed
1732	1732	2 by the licensor and the customer;
1733	1733	3 (i) an electronic agreement in which the
1734	1734	4 customer accepts the license by means of an
1735	1735	5 electronic signature that is verifiable and can be
1736	1736	6 authenticated and is attached to or made part of
1737	1737	7 the license will comply with this requirement;
1738	1738	8 (ii) a license agreement in which the customer
1739	1739	9 electronically accepts the terms by clicking "I
1740	1740	10 agree" does not comply with this requirement;
1741	1741	11 (B) it restricts the customer's duplication and
1742	1742	12 use of the software;
1743	1743	13 (C) it prohibits the customer from licensing,
1744	1744	14 sublicensing, or transferring the software to a third
1745	1745	15 party (except to a related party) without the
1746	1746	16 permission and continued control of the licensor;
1747	1747	17 (D) the licensor has a policy of providing another
1748	1748	18 copy at minimal or no charge if the customer loses or
1749	1749	19 damages the software, or of permitting the licensee to
1750	1750	20 make and keep an archival copy, and such policy is
1751	1751	21 either stated in the license agreement, supported by
1752	1752	22 the licensor's books and records, or supported by a
1753	1753	23 notarized statement made under penalties of perjury by
1754	1754	24 the licensor; and
1755	1755	25 (E) the customer must destroy or return all copies
1756	1756	26 of the software to the licensor at the end of the
1757	1757
1758	1758
1759	1759
1760	1760
1761	1761
1762	1762	HB2509 - 48 - LRB104 11822 HLH 21912 b
1763	1763
1764	1764
1765	1765	HB2509- 49 -LRB104 11822 HLH 21912 b HB2509 - 49 - LRB104 11822 HLH 21912 b
1766	1766	HB2509 - 49 - LRB104 11822 HLH 21912 b
1767	1767	1 license period; this provision is deemed to be met, in
1768	1768	2 the case of a perpetual license, without being set
1769	1769	3 forth in the license agreement; and
1770	1770	4 (2) property that is subject to a tax on lease
1771	1771	5 receipts imposed by a home rule unit of local government
1772	1772	6 if the ordinance imposing that tax was adopted prior to
1773	1773	7 January 1, 2023.
1774	1774	8 (39) Materials furnished to a common interest community
1775	1775	9 association pursuant to a contract entered into with the
1776	1776	10 highway commissioner of a road district under subsection (k)
1777	1777	11 of Section 1-30 of the Common Interest Community Association
1778	1778	12 Act. This paragraph is exempt from the provisions of Section
1779	1779	13 3-75.
1780	1780	14 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
1781	1781	15 Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1782	1782	16 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
1783	1783	17 Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
1784	1784	18 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
1785	1785	19 103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
1786	1786	20 7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995,
1787	1787	21 eff. 8-9-24; revised 11-26-24.)
1788	1788	22 Section 15. The Service Occupation Tax Act is amended by
1789	1789	23 changing Section 3-5 as follows:
1790	1790	24 (35 ILCS 115/3-5)
1791	1791
1792	1792
1793	1793
1794	1794
1795	1795
1796	1796	HB2509 - 49 - LRB104 11822 HLH 21912 b
1797	1797
1798	1798
1799	1799	HB2509- 50 -LRB104 11822 HLH 21912 b HB2509 - 50 - LRB104 11822 HLH 21912 b
1800	1800	HB2509 - 50 - LRB104 11822 HLH 21912 b
1801	1801	1 Sec. 3-5. Exemptions. The following tangible personal
1802	1802	2 property is exempt from the tax imposed by this Act:
1803	1803	3 (1) Personal property sold by a corporation, society,
1804	1804	4 association, foundation, institution, or organization, other
1805	1805	5 than a limited liability company, that is organized and
1806	1806	6 operated as a not-for-profit service enterprise for the
1807	1807	7 benefit of persons 65 years of age or older if the personal
1808	1808	8 property was not purchased by the enterprise for the purpose
1809	1809	9 of resale by the enterprise.
1810	1810	10 (2) Personal property purchased by a not-for-profit
1811	1811	11 Illinois county fair association for use in conducting,
1812	1812	12 operating, or promoting the county fair.
1813	1813	13 (3) Personal property purchased by any not-for-profit arts
1814	1814	14 or cultural organization that establishes, by proof required
1815	1815	15 by the Department by rule, that it has received an exemption
1816	1816	16 under Section 501(c)(3) of the Internal Revenue Code and that
1817	1817	17 is organized and operated primarily for the presentation or
1818	1818	18 support of arts or cultural programming, activities, or
1819	1819	19 services. These organizations include, but are not limited to,
1820	1820	20 music and dramatic arts organizations such as symphony
1821	1821	21 orchestras and theatrical groups, arts and cultural service
1822	1822	22 organizations, local arts councils, visual arts organizations,
1823	1823	23 and media arts organizations. On and after July 1, 2001 (the
1824	1824	24 effective date of Public Act 92-35), however, an entity
1825	1825	25 otherwise eligible for this exemption shall not make tax-free
1826	1826	26 purchases unless it has an active identification number issued
1827	1827
1828	1828
1829	1829
1830	1830
1831	1831
1832	1832	HB2509 - 50 - LRB104 11822 HLH 21912 b
1833	1833
1834	1834
1835	1835	HB2509- 51 -LRB104 11822 HLH 21912 b HB2509 - 51 - LRB104 11822 HLH 21912 b
1836	1836	HB2509 - 51 - LRB104 11822 HLH 21912 b
1837	1837	1 by the Department.
1838	1838	2 (4) Legal tender, currency, medallions, or gold or silver
1839	1839	3 coinage issued by the State of Illinois, the government of the
1840	1840	4 United States of America, or the government of any foreign
1841	1841	5 country, and bullion.
1842	1842	6 (5) Until July 1, 2003 and beginning again on September 1,
1843	1843	7 2004 through August 30, 2014, graphic arts machinery and
1844	1844	8 equipment, including repair and replacement parts, both new
1845	1845	9 and used, and including that manufactured on special order or
1846	1846	10 purchased for lease, certified by the purchaser to be used
1847	1847	11 primarily for graphic arts production. Equipment includes
1848	1848	12 chemicals or chemicals acting as catalysts but only if the
1849	1849	13 chemicals or chemicals acting as catalysts effect a direct and
1850	1850	14 immediate change upon a graphic arts product. Beginning on
1851	1851	15 July 1, 2017, graphic arts machinery and equipment is included
1852	1852	16 in the manufacturing and assembling machinery and equipment
1853	1853	17 exemption under Section 2 of this Act.
1854	1854	18 (6) Personal property sold by a teacher-sponsored student
1855	1855	19 organization affiliated with an elementary or secondary school
1856	1856	20 located in Illinois.
1857	1857	21 (7) Farm machinery and equipment, both new and used,
1858	1858	22 including that manufactured on special order, certified by the
1859	1859	23 purchaser to be used primarily for production agriculture or
1860	1860	24 State or federal agricultural programs, including individual
1861	1861	25 replacement parts for the machinery and equipment, including
1862	1862	26 machinery and equipment purchased for lease, and including
1863	1863
1864	1864
1865	1865
1866	1866
1867	1867
1868	1868	HB2509 - 51 - LRB104 11822 HLH 21912 b
1869	1869
1870	1870
1871	1871	HB2509- 52 -LRB104 11822 HLH 21912 b HB2509 - 52 - LRB104 11822 HLH 21912 b
1872	1872	HB2509 - 52 - LRB104 11822 HLH 21912 b
1873	1873	1 implements of husbandry defined in Section 1-130 of the
1874	1874	2 Illinois Vehicle Code, farm machinery and agricultural
1875	1875	3 chemical and fertilizer spreaders, and nurse wagons required
1876	1876	4 to be registered under Section 3-809 of the Illinois Vehicle
1877	1877	5 Code, but excluding other motor vehicles required to be
1878	1878	6 registered under the Illinois Vehicle Code. Horticultural
1879	1879	7 polyhouses or hoop houses used for propagating, growing, or
1880	1880	8 overwintering plants shall be considered farm machinery and
1881	1881	9 equipment under this item (7). Agricultural chemical tender
1882	1882	10 tanks and dry boxes shall include units sold separately from a
1883	1883	11 motor vehicle required to be licensed and units sold mounted
1884	1884	12 on a motor vehicle required to be licensed if the selling price
1885	1885	13 of the tender is separately stated.
1886	1886	14 Farm machinery and equipment shall include precision
1887	1887	15 farming equipment that is installed or purchased to be
1888	1888	16 installed on farm machinery and equipment, including, but not
1889	1889	17 limited to, tractors, harvesters, sprayers, planters, seeders,
1890	1890	18 or spreaders. Precision farming equipment includes, but is not
1891	1891	19 limited to, soil testing sensors, computers, monitors,
1892	1892	20 software, global positioning and mapping systems, and other
1893	1893	21 such equipment.
1894	1894	22 Farm machinery and equipment also includes computers,
1895	1895	23 sensors, software, and related equipment used primarily in the
1896	1896	24 computer-assisted operation of production agriculture
1897	1897	25 facilities, equipment, and activities such as, but not limited
1898	1898	26 to, the collection, monitoring, and correlation of animal and
1899	1899
1900	1900
1901	1901
1902	1902
1903	1903
1904	1904	HB2509 - 52 - LRB104 11822 HLH 21912 b
1905	1905
1906	1906
1907	1907	HB2509- 53 -LRB104 11822 HLH 21912 b HB2509 - 53 - LRB104 11822 HLH 21912 b
1908	1908	HB2509 - 53 - LRB104 11822 HLH 21912 b
1909	1909	1 crop data for the purpose of formulating animal diets and
1910	1910	2 agricultural chemicals.
1911	1911	3 Beginning on January 1, 2024, farm machinery and equipment
1912	1912	4 also includes electrical power generation equipment used
1913	1913	5 primarily for production agriculture.
1914	1914	6 This item (7) is exempt from the provisions of Section
1915	1915	7 3-55.
1916	1916	8 (8) Until June 30, 2013, fuel and petroleum products sold
1917	1917	9 to or used by an air common carrier, certified by the carrier
1918	1918	10 to be used for consumption, shipment, or storage in the
1919	1919	11 conduct of its business as an air common carrier, for a flight
1920	1920	12 destined for or returning from a location or locations outside
1921	1921	13 the United States without regard to previous or subsequent
1922	1922	14 domestic stopovers.
1923	1923	15 Beginning July 1, 2013, fuel and petroleum products sold
1924	1924	16 to or used by an air carrier, certified by the carrier to be
1925	1925	17 used for consumption, shipment, or storage in the conduct of
1926	1926	18 its business as an air common carrier, for a flight that (i) is
1927	1927	19 engaged in foreign trade or is engaged in trade between the
1928	1928	20 United States and any of its possessions and (ii) transports
1929	1929	21 at least one individual or package for hire from the city of
1930	1930	22 origination to the city of final destination on the same
1931	1931	23 aircraft, without regard to a change in the flight number of
1932	1932	24 that aircraft.
1933	1933	25 (9) Proceeds of mandatory service charges separately
1934	1934	26 stated on customers' bills for the purchase and consumption of
1935	1935
1936	1936
1937	1937
1938	1938
1939	1939
1940	1940	HB2509 - 53 - LRB104 11822 HLH 21912 b
1941	1941
1942	1942
1943	1943	HB2509- 54 -LRB104 11822 HLH 21912 b HB2509 - 54 - LRB104 11822 HLH 21912 b
1944	1944	HB2509 - 54 - LRB104 11822 HLH 21912 b
1945	1945	1 food and beverages, to the extent that the proceeds of the
1946	1946	2 service charge are in fact turned over as tips or as a
1947	1947	3 substitute for tips to the employees who participate directly
1948	1948	4 in preparing, serving, hosting or cleaning up the food or
1949	1949	5 beverage function with respect to which the service charge is
1950	1950	6 imposed.
1951	1951	7 (10) Until July 1, 2003, oil field exploration, drilling,
1952	1952	8 and production equipment, including (i) rigs and parts of
1953	1953	9 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1954	1954	10 pipe and tubular goods, including casing and drill strings,
1955	1955	11 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1956	1956	12 lines, (v) any individual replacement part for oil field
1957	1957	13 exploration, drilling, and production equipment, and (vi)
1958	1958	14 machinery and equipment purchased for lease; but excluding
1959	1959	15 motor vehicles required to be registered under the Illinois
1960	1960	16 Vehicle Code.
1961	1961	17 (11) Photoprocessing machinery and equipment, including
1962	1962	18 repair and replacement parts, both new and used, including
1963	1963	19 that manufactured on special order, certified by the purchaser
1964	1964	20 to be used primarily for photoprocessing, and including
1965	1965	21 photoprocessing machinery and equipment purchased for lease.
1966	1966	22 (12) Until July 1, 2028, coal and aggregate exploration,
1967	1967	23 mining, off-highway hauling, processing, maintenance, and
1968	1968	24 reclamation equipment, including replacement parts and
1969	1969	25 equipment, and including equipment purchased for lease, but
1970	1970	26 excluding motor vehicles required to be registered under the
1971	1971
1972	1972
1973	1973
1974	1974
1975	1975
1976	1976	HB2509 - 54 - LRB104 11822 HLH 21912 b
1977	1977
1978	1978
1979	1979	HB2509- 55 -LRB104 11822 HLH 21912 b HB2509 - 55 - LRB104 11822 HLH 21912 b
1980	1980	HB2509 - 55 - LRB104 11822 HLH 21912 b
1981	1981	1 Illinois Vehicle Code. The changes made to this Section by
1982	1982	2 Public Act 97-767 apply on and after July 1, 2003, but no claim
1983	1983	3 for credit or refund is allowed on or after August 16, 2013
1984	1984	4 (the effective date of Public Act 98-456) for such taxes paid
1985	1985	5 during the period beginning July 1, 2003 and ending on August
1986	1986	6 16, 2013 (the effective date of Public Act 98-456).
1987	1987	7 (13) Beginning January 1, 1992 and through June 30, 2016,
1988	1988	8 food for human consumption that is to be consumed off the
1989	1989	9 premises where it is sold (other than alcoholic beverages,
1990	1990	10 soft drinks and food that has been prepared for immediate
1991	1991	11 consumption) and prescription and non-prescription medicines,
1992	1992	12 drugs, medical appliances, and insulin, urine testing
1993	1993	13 materials, syringes, and needles used by diabetics, for human
1994	1994	14 use, when purchased for use by a person receiving medical
1995	1995	15 assistance under Article V of the Illinois Public Aid Code who
1996	1996	16 resides in a licensed long-term care facility, as defined in
1997	1997	17 the Nursing Home Care Act, or in a licensed facility as defined
1998	1998	18 in the ID/DD Community Care Act, the MC/DD Act, or the
1999	1999	19 Specialized Mental Health Rehabilitation Act of 2013.
2000	2000	20 (14) Semen used for artificial insemination of livestock
2001	2001	21 for direct agricultural production.
2002	2002	22 (15) Horses, or interests in horses, registered with and
2003	2003	23 meeting the requirements of any of the Arabian Horse Club
2004	2004	24 Registry of America, Appaloosa Horse Club, American Quarter
2005	2005	25 Horse Association, United States Trotting Association, or
2006	2006	26 Jockey Club, as appropriate, used for purposes of breeding or
2007	2007
2008	2008
2009	2009
2010	2010
2011	2011
2012	2012	HB2509 - 55 - LRB104 11822 HLH 21912 b
2013	2013
2014	2014
2015	2015	HB2509- 56 -LRB104 11822 HLH 21912 b HB2509 - 56 - LRB104 11822 HLH 21912 b
2016	2016	HB2509 - 56 - LRB104 11822 HLH 21912 b
2017	2017	1 racing for prizes. This item (15) is exempt from the
2018	2018	2 provisions of Section 3-55, and the exemption provided for
2019	2019	3 under this item (15) applies for all periods beginning May 30,
2020	2020	4 1995, but no claim for credit or refund is allowed on or after
2021	2021	5 January 1, 2008 (the effective date of Public Act 95-88) for
2022	2022	6 such taxes paid during the period beginning May 30, 2000 and
2023	2023	7 ending on January 1, 2008 (the effective date of Public Act
2024	2024	8 95-88).
2025	2025	9 (16) Computers and communications equipment utilized for
2026	2026	10 any hospital purpose and equipment used in the diagnosis,
2027	2027	11 analysis, or treatment of hospital patients sold to a lessor
2028	2028	12 who leases the equipment, under a lease of one year or longer
2029	2029	13 executed or in effect at the time of the purchase, to a
2030	2030	14 hospital that has been issued an active tax exemption
2031	2031	15 identification number by the Department under Section 1g of
2032	2032	16 the Retailers' Occupation Tax Act.
2033	2033	17 (17) Personal property sold to a lessor who leases the
2034	2034	18 property, under a lease of one year or longer executed or in
2035	2035	19 effect at the time of the purchase, to a governmental body that
2036	2036	20 has been issued an active tax exemption identification number
2037	2037	21 by the Department under Section 1g of the Retailers'
2038	2038	22 Occupation Tax Act.
2039	2039	23 (18) Beginning with taxable years ending on or after
2040	2040	24 December 31, 1995 and ending with taxable years ending on or
2041	2041	25 before December 31, 2004, personal property that is donated
2042	2042	26 for disaster relief to be used in a State or federally declared
2043	2043
2044	2044
2045	2045
2046	2046
2047	2047
2048	2048	HB2509 - 56 - LRB104 11822 HLH 21912 b
2049	2049
2050	2050
2051	2051	HB2509- 57 -LRB104 11822 HLH 21912 b HB2509 - 57 - LRB104 11822 HLH 21912 b
2052	2052	HB2509 - 57 - LRB104 11822 HLH 21912 b
2053	2053	1 disaster area in Illinois or bordering Illinois by a
2054	2054	2 manufacturer or retailer that is registered in this State to a
2055	2055	3 corporation, society, association, foundation, or institution
2056	2056	4 that has been issued a sales tax exemption identification
2057	2057	5 number by the Department that assists victims of the disaster
2058	2058	6 who reside within the declared disaster area.
2059	2059	7 (19) Beginning with taxable years ending on or after
2060	2060	8 December 31, 1995 and ending with taxable years ending on or
2061	2061	9 before December 31, 2004, personal property that is used in
2062	2062	10 the performance of infrastructure repairs in this State,
2063	2063	11 including, but not limited to, municipal roads and streets,
2064	2064	12 access roads, bridges, sidewalks, waste disposal systems,
2065	2065	13 water and sewer line extensions, water distribution and
2066	2066	14 purification facilities, storm water drainage and retention
2067	2067	15 facilities, and sewage treatment facilities, resulting from a
2068	2068	16 State or federally declared disaster in Illinois or bordering
2069	2069	17 Illinois when such repairs are initiated on facilities located
2070	2070	18 in the declared disaster area within 6 months after the
2071	2071	19 disaster.
2072	2072	20 (20) Beginning July 1, 1999, game or game birds sold at a
2073	2073	21 "game breeding and hunting preserve area" as that term is used
2074	2074	22 in the Wildlife Code. This paragraph is exempt from the
2075	2075	23 provisions of Section 3-55.
2076	2076	24 (21) A motor vehicle, as that term is defined in Section
2077	2077	25 1-146 of the Illinois Vehicle Code, that is donated to a
2078	2078	26 corporation, limited liability company, society, association,
2079	2079
2080	2080
2081	2081
2082	2082
2083	2083
2084	2084	HB2509 - 57 - LRB104 11822 HLH 21912 b
2085	2085
2086	2086
2087	2087	HB2509- 58 -LRB104 11822 HLH 21912 b HB2509 - 58 - LRB104 11822 HLH 21912 b
2088	2088	HB2509 - 58 - LRB104 11822 HLH 21912 b
2089	2089	1 foundation, or institution that is determined by the
2090	2090	2 Department to be organized and operated exclusively for
2091	2091	3 educational purposes. For purposes of this exemption, "a
2092	2092	4 corporation, limited liability company, society, association,
2093	2093	5 foundation, or institution organized and operated exclusively
2094	2094	6 for educational purposes" means all tax-supported public
2095	2095	7 schools, private schools that offer systematic instruction in
2096	2096	8 useful branches of learning by methods common to public
2097	2097	9 schools and that compare favorably in their scope and
2098	2098	10 intensity with the course of study presented in tax-supported
2099	2099	11 schools, and vocational or technical schools or institutes
2100	2100	12 organized and operated exclusively to provide a course of
2101	2101	13 study of not less than 6 weeks duration and designed to prepare
2102	2102	14 individuals to follow a trade or to pursue a manual,
2103	2103	15 technical, mechanical, industrial, business, or commercial
2104	2104	16 occupation.
2105	2105	17 (22) Beginning January 1, 2000, personal property,
2106	2106	18 including food, purchased through fundraising events for the
2107	2107	19 benefit of a public or private elementary or secondary school,
2108	2108	20 a group of those schools, or one or more school districts if
2109	2109	21 the events are sponsored by an entity recognized by the school
2110	2110	22 district that consists primarily of volunteers and includes
2111	2111	23 parents and teachers of the school children. This paragraph
2112	2112	24 does not apply to fundraising events (i) for the benefit of
2113	2113	25 private home instruction or (ii) for which the fundraising
2114	2114	26 entity purchases the personal property sold at the events from
2115	2115
2116	2116
2117	2117
2118	2118
2119	2119
2120	2120	HB2509 - 58 - LRB104 11822 HLH 21912 b
2121	2121
2122	2122
2123	2123	HB2509- 59 -LRB104 11822 HLH 21912 b HB2509 - 59 - LRB104 11822 HLH 21912 b
2124	2124	HB2509 - 59 - LRB104 11822 HLH 21912 b
2125	2125	1 another individual or entity that sold the property for the
2126	2126	2 purpose of resale by the fundraising entity and that profits
2127	2127	3 from the sale to the fundraising entity. This paragraph is
2128	2128	4 exempt from the provisions of Section 3-55.
2129	2129	5 (23) Beginning January 1, 2000 and through December 31,
2130	2130	6 2001, new or used automatic vending machines that prepare and
2131	2131	7 serve hot food and beverages, including coffee, soup, and
2132	2132	8 other items, and replacement parts for these machines.
2133	2133	9 Beginning January 1, 2002 and through June 30, 2003, machines
2134	2134	10 and parts for machines used in commercial, coin-operated
2135	2135	11 amusement and vending business if a use or occupation tax is
2136	2136	12 paid on the gross receipts derived from the use of the
2137	2137	13 commercial, coin-operated amusement and vending machines. This
2138	2138	14 paragraph is exempt from the provisions of Section 3-55.
2139	2139	15 (24) Beginning on August 2, 2001 (the effective date of
2140	2140	16 Public Act 92-227), computers and communications equipment
2141	2141	17 utilized for any hospital purpose and equipment used in the
2142	2142	18 diagnosis, analysis, or treatment of hospital patients sold to
2143	2143	19 a lessor who leases the equipment, under a lease of one year or
2144	2144	20 longer executed or in effect at the time of the purchase, to a
2145	2145	21 hospital that has been issued an active tax exemption
2146	2146	22 identification number by the Department under Section 1g of
2147	2147	23 the Retailers' Occupation Tax Act. This paragraph is exempt
2148	2148	24 from the provisions of Section 3-55.
2149	2149	25 (25) Beginning on August 2, 2001 (the effective date of
2150	2150	26 Public Act 92-227), personal property sold to a lessor who
2151	2151
2152	2152
2153	2153
2154	2154
2155	2155
2156	2156	HB2509 - 59 - LRB104 11822 HLH 21912 b
2157	2157
2158	2158
2159	2159	HB2509- 60 -LRB104 11822 HLH 21912 b HB2509 - 60 - LRB104 11822 HLH 21912 b
2160	2160	HB2509 - 60 - LRB104 11822 HLH 21912 b
2161	2161	1 leases the property, under a lease of one year or longer
2162	2162	2 executed or in effect at the time of the purchase, to a
2163	2163	3 governmental body that has been issued an active tax exemption
2164	2164	4 identification number by the Department under Section 1g of
2165	2165	5 the Retailers' Occupation Tax Act. This paragraph is exempt
2166	2166	6 from the provisions of Section 3-55.
2167	2167	7 (26) Beginning on January 1, 2002 and through June 30,
2168	2168	8 2016, tangible personal property purchased from an Illinois
2169	2169	9 retailer by a taxpayer engaged in centralized purchasing
2170	2170	10 activities in Illinois who will, upon receipt of the property
2171	2171	11 in Illinois, temporarily store the property in Illinois (i)
2172	2172	12 for the purpose of subsequently transporting it outside this
2173	2173	13 State for use or consumption thereafter solely outside this
2174	2174	14 State or (ii) for the purpose of being processed, fabricated,
2175	2175	15 or manufactured into, attached to, or incorporated into other
2176	2176	16 tangible personal property to be transported outside this
2177	2177	17 State and thereafter used or consumed solely outside this
2178	2178	18 State. The Director of Revenue shall, pursuant to rules
2179	2179	19 adopted in accordance with the Illinois Administrative
2180	2180	20 Procedure Act, issue a permit to any taxpayer in good standing
2181	2181	21 with the Department who is eligible for the exemption under
2182	2182	22 this paragraph (26). The permit issued under this paragraph
2183	2183	23 (26) shall authorize the holder, to the extent and in the
2184	2184	24 manner specified in the rules adopted under this Act, to
2185	2185	25 purchase tangible personal property from a retailer exempt
2186	2186	26 from the taxes imposed by this Act. Taxpayers shall maintain
2187	2187
2188	2188
2189	2189
2190	2190
2191	2191
2192	2192	HB2509 - 60 - LRB104 11822 HLH 21912 b
2193	2193
2194	2194
2195	2195	HB2509- 61 -LRB104 11822 HLH 21912 b HB2509 - 61 - LRB104 11822 HLH 21912 b
2196	2196	HB2509 - 61 - LRB104 11822 HLH 21912 b
2197	2197	1 all necessary books and records to substantiate the use and
2198	2198	2 consumption of all such tangible personal property outside of
2199	2199	3 the State of Illinois.
2200	2200	4 (27) Beginning January 1, 2008, tangible personal property
2201	2201	5 used in the construction or maintenance of a community water
2202	2202	6 supply, as defined under Section 3.145 of the Environmental
2203	2203	7 Protection Act, that is operated by a not-for-profit
2204	2204	8 corporation that holds a valid water supply permit issued
2205	2205	9 under Title IV of the Environmental Protection Act. This
2206	2206	10 paragraph is exempt from the provisions of Section 3-55.
2207	2207	11 (28) Tangible personal property sold to a
2208	2208	12 public-facilities corporation, as described in Section
2209	2209	13 11-65-10 of the Illinois Municipal Code, for purposes of
2210	2210	14 constructing or furnishing a municipal convention hall, but
2211	2211	15 only if the legal title to the municipal convention hall is
2212	2212	16 transferred to the municipality without any further
2213	2213	17 consideration by or on behalf of the municipality at the time
2214	2214	18 of the completion of the municipal convention hall or upon the
2215	2215	19 retirement or redemption of any bonds or other debt
2216	2216	20 instruments issued by the public-facilities corporation in
2217	2217	21 connection with the development of the municipal convention
2218	2218	22 hall. This exemption includes existing public-facilities
2219	2219	23 corporations as provided in Section 11-65-25 of the Illinois
2220	2220	24 Municipal Code. This paragraph is exempt from the provisions
2221	2221	25 of Section 3-55.
2222	2222	26 (29) Beginning January 1, 2010 and continuing through
2223	2223
2224	2224
2225	2225
2226	2226
2227	2227
2228	2228	HB2509 - 61 - LRB104 11822 HLH 21912 b
2229	2229
2230	2230
2231	2231	HB2509- 62 -LRB104 11822 HLH 21912 b HB2509 - 62 - LRB104 11822 HLH 21912 b
2232	2232	HB2509 - 62 - LRB104 11822 HLH 21912 b
2233	2233	1 December 31, 2029, materials, parts, equipment, components,
2234	2234	2 and furnishings incorporated into or upon an aircraft as part
2235	2235	3 of the modification, refurbishment, completion, replacement,
2236	2236	4 repair, or maintenance of the aircraft. This exemption
2237	2237	5 includes consumable supplies used in the modification,
2238	2238	6 refurbishment, completion, replacement, repair, and
2239	2239	7 maintenance of aircraft. However, until January 1, 2024, this
2240	2240	8 exemption excludes any materials, parts, equipment,
2241	2241	9 components, and consumable supplies used in the modification,
2242	2242	10 replacement, repair, and maintenance of aircraft engines or
2243	2243	11 power plants, whether such engines or power plants are
2244	2244	12 installed or uninstalled upon any such aircraft. "Consumable
2245	2245	13 supplies" include, but are not limited to, adhesive, tape,
2246	2246	14 sandpaper, general purpose lubricants, cleaning solution,
2247	2247	15 latex gloves, and protective films.
2248	2248	16 Beginning January 1, 2010 and continuing through December
2249	2249	17 31, 2023, this exemption applies only to the transfer of
2250	2250	18 qualifying tangible personal property incident to the
2251	2251	19 modification, refurbishment, completion, replacement, repair,
2252	2252	20 or maintenance of an aircraft by persons who (i) hold an Air
2253	2253	21 Agency Certificate and are empowered to operate an approved
2254	2254	22 repair station by the Federal Aviation Administration, (ii)
2255	2255	23 have a Class IV Rating, and (iii) conduct operations in
2256	2256	24 accordance with Part 145 of the Federal Aviation Regulations.
2257	2257	25 The exemption does not include aircraft operated by a
2258	2258	26 commercial air carrier providing scheduled passenger air
2259	2259
2260	2260
2261	2261
2262	2262
2263	2263
2264	2264	HB2509 - 62 - LRB104 11822 HLH 21912 b
2265	2265
2266	2266
2267	2267	HB2509- 63 -LRB104 11822 HLH 21912 b HB2509 - 63 - LRB104 11822 HLH 21912 b
2268	2268	HB2509 - 63 - LRB104 11822 HLH 21912 b
2269	2269	1 service pursuant to authority issued under Part 121 or Part
2270	2270	2 129 of the Federal Aviation Regulations. From January 1, 2024
2271	2271	3 through December 31, 2029, this exemption applies only to the
2272	2272	4 transfer of qualifying tangible personal property incident to:
2273	2273	5 (A) the modification, refurbishment, completion, repair,
2274	2274	6 replacement, or maintenance of an aircraft by persons who (i)
2275	2275	7 hold an Air Agency Certificate and are empowered to operate an
2276	2276	8 approved repair station by the Federal Aviation
2277	2277	9 Administration, (ii) have a Class IV Rating, and (iii) conduct
2278	2278	10 operations in accordance with Part 145 of the Federal Aviation
2279	2279	11 Regulations; and (B) the modification, replacement, repair,
2280	2280	12 and maintenance of aircraft engines or power plants without
2281	2281	13 regard to whether or not those persons meet the qualifications
2282	2282	14 of item (A).
2283	2283	15 The changes made to this paragraph (29) by Public Act
2284	2284	16 98-534 are declarative of existing law. It is the intent of the
2285	2285	17 General Assembly that the exemption under this paragraph (29)
2286	2286	18 applies continuously from January 1, 2010 through December 31,
2287	2287	19 2024; however, no claim for credit or refund is allowed for
2288	2288	20 taxes paid as a result of the disallowance of this exemption on
2289	2289	21 or after January 1, 2015 and prior to February 5, 2020 (the
2290	2290	22 effective date of Public Act 101-629).
2291	2291	23 (30) Beginning January 1, 2017 and through December 31,
2292	2292	24 2026, menstrual pads, tampons, and menstrual cups.
2293	2293	25 (31) Tangible personal property transferred to a purchaser
2294	2294	26 who is exempt from tax by operation of federal law. This
2295	2295
2296	2296
2297	2297
2298	2298
2299	2299
2300	2300	HB2509 - 63 - LRB104 11822 HLH 21912 b
2301	2301
2302	2302
2303	2303	HB2509- 64 -LRB104 11822 HLH 21912 b HB2509 - 64 - LRB104 11822 HLH 21912 b
2304	2304	HB2509 - 64 - LRB104 11822 HLH 21912 b
2305	2305	1 paragraph is exempt from the provisions of Section 3-55.
2306	2306	2 (32) Qualified tangible personal property used in the
2307	2307	3 construction or operation of a data center that has been
2308	2308	4 granted a certificate of exemption by the Department of
2309	2309	5 Commerce and Economic Opportunity, whether that tangible
2310	2310	6 personal property is purchased by the owner, operator, or
2311	2311	7 tenant of the data center or by a contractor or subcontractor
2312	2312	8 of the owner, operator, or tenant. Data centers that would
2313	2313	9 have qualified for a certificate of exemption prior to January
2314	2314	10 1, 2020 had Public Act 101-31 been in effect, may apply for and
2315	2315	11 obtain an exemption for subsequent purchases of computer
2316	2316	12 equipment or enabling software purchased or leased to upgrade,
2317	2317	13 supplement, or replace computer equipment or enabling software
2318	2318	14 purchased or leased in the original investment that would have
2319	2319	15 qualified.
2320	2320	16 The Department of Commerce and Economic Opportunity shall
2321	2321	17 grant a certificate of exemption under this item (32) to
2322	2322	18 qualified data centers as defined by Section 605-1025 of the
2323	2323	19 Department of Commerce and Economic Opportunity Law of the
2324	2324	20 Civil Administrative Code of Illinois.
2325	2325	21 For the purposes of this item (32):
2326	2326	22 "Data center" means a building or a series of
2327	2327	23 buildings rehabilitated or constructed to house working
2328	2328	24 servers in one physical location or multiple sites within
2329	2329	25 the State of Illinois.
2330	2330	26 "Qualified tangible personal property" means:
2331	2331
2332	2332
2333	2333
2334	2334
2335	2335
2336	2336	HB2509 - 64 - LRB104 11822 HLH 21912 b
2337	2337
2338	2338
2339	2339	HB2509- 65 -LRB104 11822 HLH 21912 b HB2509 - 65 - LRB104 11822 HLH 21912 b
2340	2340	HB2509 - 65 - LRB104 11822 HLH 21912 b
2341	2341	1 electrical systems and equipment; climate control and
2342	2342	2 chilling equipment and systems; mechanical systems and
2343	2343	3 equipment; monitoring and secure systems; emergency
2344	2344	4 generators; hardware; computers; servers; data storage
2345	2345	5 devices; network connectivity equipment; racks; cabinets;
2346	2346	6 telecommunications cabling infrastructure; raised floor
2347	2347	7 systems; peripheral components or systems; software;
2348	2348	8 mechanical, electrical, or plumbing systems; battery
2349	2349	9 systems; cooling systems and towers; temperature control
2350	2350	10 systems; other cabling; and other data center
2351	2351	11 infrastructure equipment and systems necessary to operate
2352	2352	12 qualified tangible personal property, including fixtures;
2353	2353	13 and component parts of any of the foregoing, including
2354	2354	14 installation, maintenance, repair, refurbishment, and
2355	2355	15 replacement of qualified tangible personal property to
2356	2356	16 generate, transform, transmit, distribute, or manage
2357	2357	17 electricity necessary to operate qualified tangible
2358	2358	18 personal property; and all other tangible personal
2359	2359	19 property that is essential to the operations of a computer
2360	2360	20 data center. The term "qualified tangible personal
2361	2361	21 property" also includes building materials physically
2362	2362	22 incorporated into the qualifying data center. To document
2363	2363	23 the exemption allowed under this Section, the retailer
2364	2364	24 must obtain from the purchaser a copy of the certificate
2365	2365	25 of eligibility issued by the Department of Commerce and
2366	2366	26 Economic Opportunity.
2367	2367
2368	2368
2369	2369
2370	2370
2371	2371
2372	2372	HB2509 - 65 - LRB104 11822 HLH 21912 b
2373	2373
2374	2374
2375	2375	HB2509- 66 -LRB104 11822 HLH 21912 b HB2509 - 66 - LRB104 11822 HLH 21912 b
2376	2376	HB2509 - 66 - LRB104 11822 HLH 21912 b
2377	2377	1 This item (32) is exempt from the provisions of Section
2378	2378	2 3-55.
2379	2379	3 (33) Beginning July 1, 2022, breast pumps, breast pump
2380	2380	4 collection and storage supplies, and breast pump kits. This
2381	2381	5 item (33) is exempt from the provisions of Section 3-55. As
2382	2382	6 used in this item (33):
2383	2383	7 "Breast pump" means an electrically controlled or
2384	2384	8 manually controlled pump device designed or marketed to be
2385	2385	9 used to express milk from a human breast during lactation,
2386	2386	10 including the pump device and any battery, AC adapter, or
2387	2387	11 other power supply unit that is used to power the pump
2388	2388	12 device and is packaged and sold with the pump device at the
2389	2389	13 time of sale.
2390	2390	14 "Breast pump collection and storage supplies" means
2391	2391	15 items of tangible personal property designed or marketed
2392	2392	16 to be used in conjunction with a breast pump to collect
2393	2393	17 milk expressed from a human breast and to store collected
2394	2394	18 milk until it is ready for consumption.
2395	2395	19 "Breast pump collection and storage supplies"
2396	2396	20 includes, but is not limited to: breast shields and breast
2397	2397	21 shield connectors; breast pump tubes and tubing adapters;
2398	2398	22 breast pump valves and membranes; backflow protectors and
2399	2399	23 backflow protector adaptors; bottles and bottle caps
2400	2400	24 specific to the operation of the breast pump; and breast
2401	2401	25 milk storage bags.
2402	2402	26 "Breast pump collection and storage supplies" does not
2403	2403
2404	2404
2405	2405
2406	2406
2407	2407
2408	2408	HB2509 - 66 - LRB104 11822 HLH 21912 b
2409	2409
2410	2410
2411	2411	HB2509- 67 -LRB104 11822 HLH 21912 b HB2509 - 67 - LRB104 11822 HLH 21912 b
2412	2412	HB2509 - 67 - LRB104 11822 HLH 21912 b
2413	2413	1 include: (1) bottles and bottle caps not specific to the
2414	2414	2 operation of the breast pump; (2) breast pump travel bags
2415	2415	3 and other similar carrying accessories, including ice
2416	2416	4 packs, labels, and other similar products; (3) breast pump
2417	2417	5 cleaning supplies; (4) nursing bras, bra pads, breast
2418	2418	6 shells, and other similar products; and (5) creams,
2419	2419	7 ointments, and other similar products that relieve
2420	2420	8 breastfeeding-related symptoms or conditions of the
2421	2421	9 breasts or nipples, unless sold as part of a breast pump
2422	2422	10 kit that is pre-packaged by the breast pump manufacturer
2423	2423	11 or distributor.
2424	2424	12 "Breast pump kit" means a kit that: (1) contains no
2425	2425	13 more than a breast pump, breast pump collection and
2426	2426	14 storage supplies, a rechargeable battery for operating the
2427	2427	15 breast pump, a breastmilk cooler, bottle stands, ice
2428	2428	16 packs, and a breast pump carrying case; and (2) is
2429	2429	17 pre-packaged as a breast pump kit by the breast pump
2430	2430	18 manufacturer or distributor.
2431	2431	19 (34) Tangible personal property sold by or on behalf of
2432	2432	20 the State Treasurer pursuant to the Revised Uniform Unclaimed
2433	2433	21 Property Act. This item (34) is exempt from the provisions of
2434	2434	22 Section 3-55.
2435	2435	23 (35) Beginning on January 1, 2024, tangible personal
2436	2436	24 property purchased by an active duty member of the armed
2437	2437	25 forces of the United States who presents valid military
2438	2438	26 identification and purchases the property using a form of
2439	2439
2440	2440
2441	2441
2442	2442
2443	2443
2444	2444	HB2509 - 67 - LRB104 11822 HLH 21912 b
2445	2445
2446	2446
2447	2447	HB2509- 68 -LRB104 11822 HLH 21912 b HB2509 - 68 - LRB104 11822 HLH 21912 b
2448	2448	HB2509 - 68 - LRB104 11822 HLH 21912 b
2449	2449	1 payment where the federal government is the payor. The member
2450	2450	2 of the armed forces must complete, at the point of sale, a form
2451	2451	3 prescribed by the Department of Revenue documenting that the
2452	2452	4 transaction is eligible for the exemption under this
2453	2453	5 paragraph. Retailers must keep the form as documentation of
2454	2454	6 the exemption in their records for a period of not less than 6
2455	2455	7 years. "Armed forces of the United States" means the United
2456	2456	8 States Army, Navy, Air Force, Space Force, Marine Corps, or
2457	2457	9 Coast Guard. This paragraph is exempt from the provisions of
2458	2458	10 Section 3-55.
2459	2459	11 (36) Beginning July 1, 2024, home-delivered meals provided
2460	2460	12 to Medicare or Medicaid recipients when payment is made by an
2461	2461	13 intermediary, such as a Medicare Administrative Contractor, a
2462	2462	14 Managed Care Organization, or a Medicare Advantage
2463	2463	15 Organization, pursuant to a government contract. This
2464	2464	16 paragraph (36) (35) is exempt from the provisions of Section
2465	2465	17 3-55.
2466	2466	18 (37) (36) Beginning on January 1, 2026, as further defined
2467	2467	19 in Section 3-10, food prepared for immediate consumption and
2468	2468	20 transferred incident to a sale of service subject to this Act
2469	2469	21 or the Service Use Tax Act by an entity licensed under the
2470	2470	22 Hospital Licensing Act, the Nursing Home Care Act, the
2471	2471	23 Assisted Living and Shared Housing Act, the ID/DD Community
2472	2472	24 Care Act, the MC/DD Act, the Specialized Mental Health
2473	2473	25 Rehabilitation Act of 2013, or the Child Care Act of 1969 or by
2474	2474	26 an entity that holds a permit issued pursuant to the Life Care
2475	2475
2476	2476
2477	2477
2478	2478
2479	2479
2480	2480	HB2509 - 68 - LRB104 11822 HLH 21912 b
2481	2481
2482	2482
2483	2483	HB2509- 69 -LRB104 11822 HLH 21912 b HB2509 - 69 - LRB104 11822 HLH 21912 b
2484	2484	HB2509 - 69 - LRB104 11822 HLH 21912 b
2485	2485	1 Facilities Act. This item (37) (36) is exempt from the
2486	2486	2 provisions of Section 3-55.
2487	2487	3 (38) (37) Beginning on January 1, 2026, as further defined
2488	2488	4 in Section 3-10, food for human consumption that is to be
2489	2489	5 consumed off the premises where it is sold (other than
2490	2490	6 alcoholic beverages, food consisting of or infused with adult
2491	2491	7 use cannabis, soft drinks, candy, and food that has been
2492	2492	8 prepared for immediate consumption). This item (38) (37) is
2493	2493	9 exempt from the provisions of Section 3-55.
2494	2494	10 (39) (36) The lease of the following tangible personal
2495	2495	11 property:
2496	2496	12 (1) computer software transferred subject to a license
2497	2497	13 that meets the following requirements:
2498	2498	14 (A) it is evidenced by a written agreement signed
2499	2499	15 by the licensor and the customer;
2500	2500	16 (i) an electronic agreement in which the
2501	2501	17 customer accepts the license by means of an
2502	2502	18 electronic signature that is verifiable and can be
2503	2503	19 authenticated and is attached to or made part of
2504	2504	20 the license will comply with this requirement;
2505	2505	21 (ii) a license agreement in which the customer
2506	2506	22 electronically accepts the terms by clicking "I
2507	2507	23 agree" does not comply with this requirement;
2508	2508	24 (B) it restricts the customer's duplication and
2509	2509	25 use of the software;
2510	2510	26 (C) it prohibits the customer from licensing,
2511	2511
2512	2512
2513	2513
2514	2514
2515	2515
2516	2516	HB2509 - 69 - LRB104 11822 HLH 21912 b
2517	2517
2518	2518
2519	2519	HB2509- 70 -LRB104 11822 HLH 21912 b HB2509 - 70 - LRB104 11822 HLH 21912 b
2520	2520	HB2509 - 70 - LRB104 11822 HLH 21912 b
2521	2521	1 sublicensing, or transferring the software to a third
2522	2522	2 party (except to a related party) without the
2523	2523	3 permission and continued control of the licensor;
2524	2524	4 (D) the licensor has a policy of providing another
2525	2525	5 copy at minimal or no charge if the customer loses or
2526	2526	6 damages the software, or of permitting the licensee to
2527	2527	7 make and keep an archival copy, and such policy is
2528	2528	8 either stated in the license agreement, supported by
2529	2529	9 the licensor's books and records, or supported by a
2530	2530	10 notarized statement made under penalties of perjury by
2531	2531	11 the licensor; and
2532	2532	12 (E) the customer must destroy or return all copies
2533	2533	13 of the software to the licensor at the end of the
2534	2534	14 license period; this provision is deemed to be met, in
2535	2535	15 the case of a perpetual license, without being set
2536	2536	16 forth in the license agreement; and
2537	2537	17 (2) property that is subject to a tax on lease
2538	2538	18 receipts imposed by a home rule unit of local government
2539	2539	19 if the ordinance imposing that tax was adopted prior to
2540	2540	20 January 1, 2023.
2541	2541	21 (40) Materials furnished to a common interest community
2542	2542	22 association pursuant to a contract entered into with the
2543	2543	23 highway commissioner of a road district under subsection (k)
2544	2544	24 of Section 1-30 of the Common Interest Community Association
2545	2545	25 Act. This paragraph is exempt from the provisions of Section
2546	2546	26 3-55.
2547	2547
2548	2548
2549	2549
2550	2550
2551	2551
2552	2552	HB2509 - 70 - LRB104 11822 HLH 21912 b
2553	2553
2554	2554
2555	2555	HB2509- 71 -LRB104 11822 HLH 21912 b HB2509 - 71 - LRB104 11822 HLH 21912 b
2556	2556	HB2509 - 71 - LRB104 11822 HLH 21912 b
2557	2557	1 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
2558	2558	2 Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2559	2559	3 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
2560	2560	4 Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
2561	2561	5 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
2562	2562	6 103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
2563	2563	7 7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995,
2564	2564	8 eff. 8-9-24; revised 11-26-24.)
2565	2565	9 Section 20. The Retailers' Occupation Tax Act is amended
2566	2566	10 by changing Section 2-5 as follows:
2567	2567	11 (35 ILCS 120/2-5)
2568	2568	12 Sec. 2-5. Exemptions. Gross receipts from proceeds from
2569	2569	13 the sale, which, on and after January 1, 2025, includes the
2570	2570	14 lease, of the following tangible personal property are exempt
2571	2571	15 from the tax imposed by this Act:
2572	2572	16 (1) Farm chemicals.
2573	2573	17 (2) Farm machinery and equipment, both new and used,
2574	2574	18 including that manufactured on special order, certified by
2575	2575	19 the purchaser to be used primarily for production
2576	2576	20 agriculture or State or federal agricultural programs,
2577	2577	21 including individual replacement parts for the machinery
2578	2578	22 and equipment, including machinery and equipment purchased
2579	2579	23 for lease, and including implements of husbandry defined
2580	2580	24 in Section 1-130 of the Illinois Vehicle Code, farm
2581	2581
2582	2582
2583	2583
2584	2584
2585	2585
2586	2586	HB2509 - 71 - LRB104 11822 HLH 21912 b
2587	2587
2588	2588
2589	2589	HB2509- 72 -LRB104 11822 HLH 21912 b HB2509 - 72 - LRB104 11822 HLH 21912 b
2590	2590	HB2509 - 72 - LRB104 11822 HLH 21912 b
2591	2591	1 machinery and agricultural chemical and fertilizer
2592	2592	2 spreaders, and nurse wagons required to be registered
2593	2593	3 under Section 3-809 of the Illinois Vehicle Code, but
2594	2594	4 excluding other motor vehicles required to be registered
2595	2595	5 under the Illinois Vehicle Code. Horticultural polyhouses
2596	2596	6 or hoop houses used for propagating, growing, or
2597	2597	7 overwintering plants shall be considered farm machinery
2598	2598	8 and equipment under this item (2). Agricultural chemical
2599	2599	9 tender tanks and dry boxes shall include units sold
2600	2600	10 separately from a motor vehicle required to be licensed
2601	2601	11 and units sold mounted on a motor vehicle required to be
2602	2602	12 licensed, if the selling price of the tender is separately
2603	2603	13 stated.
2604	2604	14 Farm machinery and equipment shall include precision
2605	2605	15 farming equipment that is installed or purchased to be
2606	2606	16 installed on farm machinery and equipment including, but
2607	2607	17 not limited to, tractors, harvesters, sprayers, planters,
2608	2608	18 seeders, or spreaders. Precision farming equipment
2609	2609	19 includes, but is not limited to, soil testing sensors,
2610	2610	20 computers, monitors, software, global positioning and
2611	2611	21 mapping systems, and other such equipment.
2612	2612	22 Farm machinery and equipment also includes computers,
2613	2613	23 sensors, software, and related equipment used primarily in
2614	2614	24 the computer-assisted operation of production agriculture
2615	2615	25 facilities, equipment, and activities such as, but not
2616	2616	26 limited to, the collection, monitoring, and correlation of
2617	2617
2618	2618
2619	2619
2620	2620
2621	2621
2622	2622	HB2509 - 72 - LRB104 11822 HLH 21912 b
2623	2623
2624	2624
2625	2625	HB2509- 73 -LRB104 11822 HLH 21912 b HB2509 - 73 - LRB104 11822 HLH 21912 b
2626	2626	HB2509 - 73 - LRB104 11822 HLH 21912 b
2627	2627	1 animal and crop data for the purpose of formulating animal
2628	2628	2 diets and agricultural chemicals.
2629	2629	3 Beginning on January 1, 2024, farm machinery and
2630	2630	4 equipment also includes electrical power generation
2631	2631	5 equipment used primarily for production agriculture.
2632	2632	6 This item (2) is exempt from the provisions of Section
2633	2633	7 2-70.
2634	2634	8 (3) Until July 1, 2003, distillation machinery and
2635	2635	9 equipment, sold as a unit or kit, assembled or installed
2636	2636	10 by the retailer, certified by the user to be used only for
2637	2637	11 the production of ethyl alcohol that will be used for
2638	2638	12 consumption as motor fuel or as a component of motor fuel
2639	2639	13 for the personal use of the user, and not subject to sale
2640	2640	14 or resale.
2641	2641	15 (4) Until July 1, 2003 and beginning again September
2642	2642	16 1, 2004 through August 30, 2014, graphic arts machinery
2643	2643	17 and equipment, including repair and replacement parts,
2644	2644	18 both new and used, and including that manufactured on
2645	2645	19 special order or purchased for lease, certified by the
2646	2646	20 purchaser to be used primarily for graphic arts
2647	2647	21 production. Equipment includes chemicals or chemicals
2648	2648	22 acting as catalysts but only if the chemicals or chemicals
2649	2649	23 acting as catalysts effect a direct and immediate change
2650	2650	24 upon a graphic arts product. Beginning on July 1, 2017,
2651	2651	25 graphic arts machinery and equipment is included in the
2652	2652	26 manufacturing and assembling machinery and equipment
2653	2653
2654	2654
2655	2655
2656	2656
2657	2657
2658	2658	HB2509 - 73 - LRB104 11822 HLH 21912 b
2659	2659
2660	2660
2661	2661	HB2509- 74 -LRB104 11822 HLH 21912 b HB2509 - 74 - LRB104 11822 HLH 21912 b
2662	2662	HB2509 - 74 - LRB104 11822 HLH 21912 b
2663	2663	1 exemption under paragraph (14).
2664	2664	2 (5) A motor vehicle that is used for automobile
2665	2665	3 renting, as defined in the Automobile Renting Occupation
2666	2666	4 and Use Tax Act. This paragraph is exempt from the
2667	2667	5 provisions of Section 2-70.
2668	2668	6 (6) Personal property sold by a teacher-sponsored
2669	2669	7 student organization affiliated with an elementary or
2670	2670	8 secondary school located in Illinois.
2671	2671	9 (7) Until July 1, 2003, proceeds of that portion of
2672	2672	10 the selling price of a passenger car the sale of which is
2673	2673	11 subject to the Replacement Vehicle Tax.
2674	2674	12 (8) Personal property sold to an Illinois county fair
2675	2675	13 association for use in conducting, operating, or promoting
2676	2676	14 the county fair.
2677	2677	15 (9) Personal property sold to a not-for-profit arts or
2678	2678	16 cultural organization that establishes, by proof required
2679	2679	17 by the Department by rule, that it has received an
2680	2680	18 exemption under Section 501(c)(3) of the Internal Revenue
2681	2681	19 Code and that is organized and operated primarily for the
2682	2682	20 presentation or support of arts or cultural programming,
2683	2683	21 activities, or services. These organizations include, but
2684	2684	22 are not limited to, music and dramatic arts organizations
2685	2685	23 such as symphony orchestras and theatrical groups, arts
2686	2686	24 and cultural service organizations, local arts councils,
2687	2687	25 visual arts organizations, and media arts organizations.
2688	2688	26 On and after July 1, 2001 (the effective date of Public Act
2689	2689
2690	2690
2691	2691
2692	2692
2693	2693
2694	2694	HB2509 - 74 - LRB104 11822 HLH 21912 b
2695	2695
2696	2696
2697	2697	HB2509- 75 -LRB104 11822 HLH 21912 b HB2509 - 75 - LRB104 11822 HLH 21912 b
2698	2698	HB2509 - 75 - LRB104 11822 HLH 21912 b
2699	2699	1 92-35), however, an entity otherwise eligible for this
2700	2700	2 exemption shall not make tax-free purchases unless it has
2701	2701	3 an active identification number issued by the Department.
2702	2702	4 (10) Personal property sold by a corporation, society,
2703	2703	5 association, foundation, institution, or organization,
2704	2704	6 other than a limited liability company, that is organized
2705	2705	7 and operated as a not-for-profit service enterprise for
2706	2706	8 the benefit of persons 65 years of age or older if the
2707	2707	9 personal property was not purchased by the enterprise for
2708	2708	10 the purpose of resale by the enterprise.
2709	2709	11 (11) Except as otherwise provided in this Section,
2710	2710	12 personal property sold to a governmental body, to a
2711	2711	13 corporation, society, association, foundation, or
2712	2712	14 institution organized and operated exclusively for
2713	2713	15 charitable, religious, or educational purposes, or to a
2714	2714	16 not-for-profit corporation, society, association,
2715	2715	17 foundation, institution, or organization that has no
2716	2716	18 compensated officers or employees and that is organized
2717	2717	19 and operated primarily for the recreation of persons 55
2718	2718	20 years of age or older. A limited liability company may
2719	2719	21 qualify for the exemption under this paragraph only if the
2720	2720	22 limited liability company is organized and operated
2721	2721	23 exclusively for educational purposes. On and after July 1,
2722	2722	24 1987, however, no entity otherwise eligible for this
2723	2723	25 exemption shall make tax-free purchases unless it has an
2724	2724	26 active identification number issued by the Department.
2725	2725
2726	2726
2727	2727
2728	2728
2729	2729
2730	2730	HB2509 - 75 - LRB104 11822 HLH 21912 b
2731	2731
2732	2732
2733	2733	HB2509- 76 -LRB104 11822 HLH 21912 b HB2509 - 76 - LRB104 11822 HLH 21912 b
2734	2734	HB2509 - 76 - LRB104 11822 HLH 21912 b
2735	2735	1 (12) (Blank).
2736	2736	2 (12-5) On and after July 1, 2003 and through June 30,
2737	2737	3 2004, motor vehicles of the second division with a gross
2738	2738	4 vehicle weight in excess of 8,000 pounds that are subject
2739	2739	5 to the commercial distribution fee imposed under Section
2740	2740	6 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
2741	2741	7 2004 and through June 30, 2005, the use in this State of
2742	2742	8 motor vehicles of the second division: (i) with a gross
2743	2743	9 vehicle weight rating in excess of 8,000 pounds; (ii) that
2744	2744	10 are subject to the commercial distribution fee imposed
2745	2745	11 under Section 3-815.1 of the Illinois Vehicle Code; and
2746	2746	12 (iii) that are primarily used for commercial purposes.
2747	2747	13 Through June 30, 2005, this exemption applies to repair
2748	2748	14 and replacement parts added after the initial purchase of
2749	2749	15 such a motor vehicle if that motor vehicle is used in a
2750	2750	16 manner that would qualify for the rolling stock exemption
2751	2751	17 otherwise provided for in this Act. For purposes of this
2752	2752	18 paragraph, "used for commercial purposes" means the
2753	2753	19 transportation of persons or property in furtherance of
2754	2754	20 any commercial or industrial enterprise whether for-hire
2755	2755	21 or not.
2756	2756	22 (13) Proceeds from sales to owners or lessors,
2757	2757	23 lessees, or shippers of tangible personal property that is
2758	2758	24 utilized by interstate carriers for hire for use as
2759	2759	25 rolling stock moving in interstate commerce and equipment
2760	2760	26 operated by a telecommunications provider, licensed as a
2761	2761
2762	2762
2763	2763
2764	2764
2765	2765
2766	2766	HB2509 - 76 - LRB104 11822 HLH 21912 b
2767	2767
2768	2768
2769	2769	HB2509- 77 -LRB104 11822 HLH 21912 b HB2509 - 77 - LRB104 11822 HLH 21912 b
2770	2770	HB2509 - 77 - LRB104 11822 HLH 21912 b
2771	2771	1 common carrier by the Federal Communications Commission,
2772	2772	2 which is permanently installed in or affixed to aircraft
2773	2773	3 moving in interstate commerce.
2774	2774	4 (14) Machinery and equipment that will be used by the
2775	2775	5 purchaser, or a lessee of the purchaser, primarily in the
2776	2776	6 process of manufacturing or assembling tangible personal
2777	2777	7 property for wholesale or retail sale or lease, whether
2778	2778	8 the sale or lease is made directly by the manufacturer or
2779	2779	9 by some other person, whether the materials used in the
2780	2780	10 process are owned by the manufacturer or some other
2781	2781	11 person, or whether the sale or lease is made apart from or
2782	2782	12 as an incident to the seller's engaging in the service
2783	2783	13 occupation of producing machines, tools, dies, jigs,
2784	2784	14 patterns, gauges, or other similar items of no commercial
2785	2785	15 value on special order for a particular purchaser. The
2786	2786	16 exemption provided by this paragraph (14) does not include
2787	2787	17 machinery and equipment used in (i) the generation of
2788	2788	18 electricity for wholesale or retail sale; (ii) the
2789	2789	19 generation or treatment of natural or artificial gas for
2790	2790	20 wholesale or retail sale that is delivered to customers
2791	2791	21 through pipes, pipelines, or mains; or (iii) the treatment
2792	2792	22 of water for wholesale or retail sale that is delivered to
2793	2793	23 customers through pipes, pipelines, or mains. The
2794	2794	24 provisions of Public Act 98-583 are declaratory of
2795	2795	25 existing law as to the meaning and scope of this
2796	2796	26 exemption. Beginning on July 1, 2017, the exemption
2797	2797
2798	2798
2799	2799
2800	2800
2801	2801
2802	2802	HB2509 - 77 - LRB104 11822 HLH 21912 b
2803	2803
2804	2804
2805	2805	HB2509- 78 -LRB104 11822 HLH 21912 b HB2509 - 78 - LRB104 11822 HLH 21912 b
2806	2806	HB2509 - 78 - LRB104 11822 HLH 21912 b
2807	2807	1 provided by this paragraph (14) includes, but is not
2808	2808	2 limited to, graphic arts machinery and equipment, as
2809	2809	3 defined in paragraph (4) of this Section.
2810	2810	4 (15) Proceeds of mandatory service charges separately
2811	2811	5 stated on customers' bills for purchase and consumption of
2812	2812	6 food and beverages, to the extent that the proceeds of the
2813	2813	7 service charge are in fact turned over as tips or as a
2814	2814	8 substitute for tips to the employees who participate
2815	2815	9 directly in preparing, serving, hosting or cleaning up the
2816	2816	10 food or beverage function with respect to which the
2817	2817	11 service charge is imposed.
2818	2818	12 (16) Tangible personal property sold to a purchaser if
2819	2819	13 the purchaser is exempt from use tax by operation of
2820	2820	14 federal law. This paragraph is exempt from the provisions
2821	2821	15 of Section 2-70.
2822	2822	16 (17) Tangible personal property sold to a common
2823	2823	17 carrier by rail or motor that receives the physical
2824	2824	18 possession of the property in Illinois and that transports
2825	2825	19 the property, or shares with another common carrier in the
2826	2826	20 transportation of the property, out of Illinois on a
2827	2827	21 standard uniform bill of lading showing the seller of the
2828	2828	22 property as the shipper or consignor of the property to a
2829	2829	23 destination outside Illinois, for use outside Illinois.
2830	2830	24 (18) Legal tender, currency, medallions, or gold or
2831	2831	25 silver coinage issued by the State of Illinois, the
2832	2832	26 government of the United States of America, or the
2833	2833
2834	2834
2835	2835
2836	2836
2837	2837
2838	2838	HB2509 - 78 - LRB104 11822 HLH 21912 b
2839	2839
2840	2840
2841	2841	HB2509- 79 -LRB104 11822 HLH 21912 b HB2509 - 79 - LRB104 11822 HLH 21912 b
2842	2842	HB2509 - 79 - LRB104 11822 HLH 21912 b
2843	2843	1 government of any foreign country, and bullion.
2844	2844	2 (19) Until July 1, 2003, oil field exploration,
2845	2845	3 drilling, and production equipment, including (i) rigs and
2846	2846	4 parts of rigs, rotary rigs, cable tool rigs, and workover
2847	2847	5 rigs, (ii) pipe and tubular goods, including casing and
2848	2848	6 drill strings, (iii) pumps and pump-jack units, (iv)
2849	2849	7 storage tanks and flow lines, (v) any individual
2850	2850	8 replacement part for oil field exploration, drilling, and
2851	2851	9 production equipment, and (vi) machinery and equipment
2852	2852	10 purchased for lease; but excluding motor vehicles required
2853	2853	11 to be registered under the Illinois Vehicle Code.
2854	2854	12 (20) Photoprocessing machinery and equipment,
2855	2855	13 including repair and replacement parts, both new and used,
2856	2856	14 including that manufactured on special order, certified by
2857	2857	15 the purchaser to be used primarily for photoprocessing,
2858	2858	16 and including photoprocessing machinery and equipment
2859	2859	17 purchased for lease.
2860	2860	18 (21) Until July 1, 2028, coal and aggregate
2861	2861	19 exploration, mining, off-highway hauling, processing,
2862	2862	20 maintenance, and reclamation equipment, including
2863	2863	21 replacement parts and equipment, and including equipment
2864	2864	22 purchased for lease, but excluding motor vehicles required
2865	2865	23 to be registered under the Illinois Vehicle Code. The
2866	2866	24 changes made to this Section by Public Act 97-767 apply on
2867	2867	25 and after July 1, 2003, but no claim for credit or refund
2868	2868	26 is allowed on or after August 16, 2013 (the effective date
2869	2869
2870	2870
2871	2871
2872	2872
2873	2873
2874	2874	HB2509 - 79 - LRB104 11822 HLH 21912 b
2875	2875
2876	2876
2877	2877	HB2509- 80 -LRB104 11822 HLH 21912 b HB2509 - 80 - LRB104 11822 HLH 21912 b
2878	2878	HB2509 - 80 - LRB104 11822 HLH 21912 b
2879	2879	1 of Public Act 98-456) for such taxes paid during the
2880	2880	2 period beginning July 1, 2003 and ending on August 16,
2881	2881	3 2013 (the effective date of Public Act 98-456).
2882	2882	4 (22) Until June 30, 2013, fuel and petroleum products
2883	2883	5 sold to or used by an air carrier, certified by the carrier
2884	2884	6 to be used for consumption, shipment, or storage in the
2885	2885	7 conduct of its business as an air common carrier, for a
2886	2886	8 flight destined for or returning from a location or
2887	2887	9 locations outside the United States without regard to
2888	2888	10 previous or subsequent domestic stopovers.
2889	2889	11 Beginning July 1, 2013, fuel and petroleum products
2890	2890	12 sold to or used by an air carrier, certified by the carrier
2891	2891	13 to be used for consumption, shipment, or storage in the
2892	2892	14 conduct of its business as an air common carrier, for a
2893	2893	15 flight that (i) is engaged in foreign trade or is engaged
2894	2894	16 in trade between the United States and any of its
2895	2895	17 possessions and (ii) transports at least one individual or
2896	2896	18 package for hire from the city of origination to the city
2897	2897	19 of final destination on the same aircraft, without regard
2898	2898	20 to a change in the flight number of that aircraft.
2899	2899	21 (23) A transaction in which the purchase order is
2900	2900	22 received by a florist who is located outside Illinois, but
2901	2901	23 who has a florist located in Illinois deliver the property
2902	2902	24 to the purchaser or the purchaser's donee in Illinois.
2903	2903	25 (24) Fuel consumed or used in the operation of ships,
2904	2904	26 barges, or vessels that are used primarily in or for the
2905	2905
2906	2906
2907	2907
2908	2908
2909	2909
2910	2910	HB2509 - 80 - LRB104 11822 HLH 21912 b
2911	2911
2912	2912
2913	2913	HB2509- 81 -LRB104 11822 HLH 21912 b HB2509 - 81 - LRB104 11822 HLH 21912 b
2914	2914	HB2509 - 81 - LRB104 11822 HLH 21912 b
2915	2915	1 transportation of property or the conveyance of persons
2916	2916	2 for hire on rivers bordering on this State if the fuel is
2917	2917	3 delivered by the seller to the purchaser's barge, ship, or
2918	2918	4 vessel while it is afloat upon that bordering river.
2919	2919	5 (25) Except as provided in item (25-5) of this
2920	2920	6 Section, a motor vehicle sold in this State to a
2921	2921	7 nonresident even though the motor vehicle is delivered to
2922	2922	8 the nonresident in this State, if the motor vehicle is not
2923	2923	9 to be titled in this State, and if a drive-away permit is
2924	2924	10 issued to the motor vehicle as provided in Section 3-603
2925	2925	11 of the Illinois Vehicle Code or if the nonresident
2926	2926	12 purchaser has vehicle registration plates to transfer to
2927	2927	13 the motor vehicle upon returning to his or her home state.
2928	2928	14 The issuance of the drive-away permit or having the
2929	2929	15 out-of-state registration plates to be transferred is
2930	2930	16 prima facie evidence that the motor vehicle will not be
2931	2931	17 titled in this State.
2932	2932	18 (25-5) The exemption under item (25) does not apply if
2933	2933	19 the state in which the motor vehicle will be titled does
2934	2934	20 not allow a reciprocal exemption for a motor vehicle sold
2935	2935	21 and delivered in that state to an Illinois resident but
2936	2936	22 titled in Illinois. The tax collected under this Act on
2937	2937	23 the sale of a motor vehicle in this State to a resident of
2938	2938	24 another state that does not allow a reciprocal exemption
2939	2939	25 shall be imposed at a rate equal to the state's rate of tax
2940	2940	26 on taxable property in the state in which the purchaser is
2941	2941
2942	2942
2943	2943
2944	2944
2945	2945
2946	2946	HB2509 - 81 - LRB104 11822 HLH 21912 b
2947	2947
2948	2948
2949	2949	HB2509- 82 -LRB104 11822 HLH 21912 b HB2509 - 82 - LRB104 11822 HLH 21912 b
2950	2950	HB2509 - 82 - LRB104 11822 HLH 21912 b
2951	2951	1 a resident, except that the tax shall not exceed the tax
2952	2952	2 that would otherwise be imposed under this Act. At the
2953	2953	3 time of the sale, the purchaser shall execute a statement,
2954	2954	4 signed under penalty of perjury, of his or her intent to
2955	2955	5 title the vehicle in the state in which the purchaser is a
2956	2956	6 resident within 30 days after the sale and of the fact of
2957	2957	7 the payment to the State of Illinois of tax in an amount
2958	2958	8 equivalent to the state's rate of tax on taxable property
2959	2959	9 in his or her state of residence and shall submit the
2960	2960	10 statement to the appropriate tax collection agency in his
2961	2961	11 or her state of residence. In addition, the retailer must
2962	2962	12 retain a signed copy of the statement in his or her
2963	2963	13 records. Nothing in this item shall be construed to
2964	2964	14 require the removal of the vehicle from this state
2965	2965	15 following the filing of an intent to title the vehicle in
2966	2966	16 the purchaser's state of residence if the purchaser titles
2967	2967	17 the vehicle in his or her state of residence within 30 days
2968	2968	18 after the date of sale. The tax collected under this Act in
2969	2969	19 accordance with this item (25-5) shall be proportionately
2970	2970	20 distributed as if the tax were collected at the 6.25%
2971	2971	21 general rate imposed under this Act.
2972	2972	22 (25-7) Beginning on July 1, 2007, no tax is imposed
2973	2973	23 under this Act on the sale of an aircraft, as defined in
2974	2974	24 Section 3 of the Illinois Aeronautics Act, if all of the
2975	2975	25 following conditions are met:
2976	2976	26 (1) the aircraft leaves this State within 15 days
2977	2977
2978	2978
2979	2979
2980	2980
2981	2981
2982	2982	HB2509 - 82 - LRB104 11822 HLH 21912 b
2983	2983
2984	2984
2985	2985	HB2509- 83 -LRB104 11822 HLH 21912 b HB2509 - 83 - LRB104 11822 HLH 21912 b
2986	2986	HB2509 - 83 - LRB104 11822 HLH 21912 b
2987	2987	1 after the later of either the issuance of the final
2988	2988	2 billing for the sale of the aircraft, or the
2989	2989	3 authorized approval for return to service, completion
2990	2990	4 of the maintenance record entry, and completion of the
2991	2991	5 test flight and ground test for inspection, as
2992	2992	6 required by 14 CFR 91.407;
2993	2993	7 (2) the aircraft is not based or registered in
2994	2994	8 this State after the sale of the aircraft; and
2995	2995	9 (3) the seller retains in his or her books and
2996	2996	10 records and provides to the Department a signed and
2997	2997	11 dated certification from the purchaser, on a form
2998	2998	12 prescribed by the Department, certifying that the
2999	2999	13 requirements of this item (25-7) are met. The
3000	3000	14 certificate must also include the name and address of
3001	3001	15 the purchaser, the address of the location where the
3002	3002	16 aircraft is to be titled or registered, the address of
3003	3003	17 the primary physical location of the aircraft, and
3004	3004	18 other information that the Department may reasonably
3005	3005	19 require.
3006	3006	20 For purposes of this item (25-7):
3007	3007	21 "Based in this State" means hangared, stored, or
3008	3008	22 otherwise used, excluding post-sale customizations as
3009	3009	23 defined in this Section, for 10 or more days in each
3010	3010	24 12-month period immediately following the date of the sale
3011	3011	25 of the aircraft.
3012	3012	26 "Registered in this State" means an aircraft
3013	3013
3014	3014
3015	3015
3016	3016
3017	3017
3018	3018	HB2509 - 83 - LRB104 11822 HLH 21912 b
3019	3019
3020	3020
3021	3021	HB2509- 84 -LRB104 11822 HLH 21912 b HB2509 - 84 - LRB104 11822 HLH 21912 b
3022	3022	HB2509 - 84 - LRB104 11822 HLH 21912 b
3023	3023	1 registered with the Department of Transportation,
3024	3024	2 Aeronautics Division, or titled or registered with the
3025	3025	3 Federal Aviation Administration to an address located in
3026	3026	4 this State.
3027	3027	5 This paragraph (25-7) is exempt from the provisions of
3028	3028	6 Section 2-70.
3029	3029	7 (26) Semen used for artificial insemination of
3030	3030	8 livestock for direct agricultural production.
3031	3031	9 (27) Horses, or interests in horses, registered with
3032	3032	10 and meeting the requirements of any of the Arabian Horse
3033	3033	11 Club Registry of America, Appaloosa Horse Club, American
3034	3034	12 Quarter Horse Association, United States Trotting
3035	3035	13 Association, or Jockey Club, as appropriate, used for
3036	3036	14 purposes of breeding or racing for prizes. This item (27)
3037	3037	15 is exempt from the provisions of Section 2-70, and the
3038	3038	16 exemption provided for under this item (27) applies for
3039	3039	17 all periods beginning May 30, 1995, but no claim for
3040	3040	18 credit or refund is allowed on or after January 1, 2008
3041	3041	19 (the effective date of Public Act 95-88) for such taxes
3042	3042	20 paid during the period beginning May 30, 2000 and ending
3043	3043	21 on January 1, 2008 (the effective date of Public Act
3044	3044	22 95-88).
3045	3045	23 (28) Computers and communications equipment utilized
3046	3046	24 for any hospital purpose and equipment used in the
3047	3047	25 diagnosis, analysis, or treatment of hospital patients
3048	3048	26 sold to a lessor who leases the equipment, under a lease of
3049	3049
3050	3050
3051	3051
3052	3052
3053	3053
3054	3054	HB2509 - 84 - LRB104 11822 HLH 21912 b
3055	3055
3056	3056
3057	3057	HB2509- 85 -LRB104 11822 HLH 21912 b HB2509 - 85 - LRB104 11822 HLH 21912 b
3058	3058	HB2509 - 85 - LRB104 11822 HLH 21912 b
3059	3059	1 one year or longer executed or in effect at the time of the
3060	3060	2 purchase, to a hospital that has been issued an active tax
3061	3061	3 exemption identification number by the Department under
3062	3062	4 Section 1g of this Act.
3063	3063	5 (29) Personal property sold to a lessor who leases the
3064	3064	6 property, under a lease of one year or longer executed or
3065	3065	7 in effect at the time of the purchase, to a governmental
3066	3066	8 body that has been issued an active tax exemption
3067	3067	9 identification number by the Department under Section 1g
3068	3068	10 of this Act.
3069	3069	11 (30) Beginning with taxable years ending on or after
3070	3070	12 December 31, 1995 and ending with taxable years ending on
3071	3071	13 or before December 31, 2004, personal property that is
3072	3072	14 donated for disaster relief to be used in a State or
3073	3073	15 federally declared disaster area in Illinois or bordering
3074	3074	16 Illinois by a manufacturer or retailer that is registered
3075	3075	17 in this State to a corporation, society, association,
3076	3076	18 foundation, or institution that has been issued a sales
3077	3077	19 tax exemption identification number by the Department that
3078	3078	20 assists victims of the disaster who reside within the
3079	3079	21 declared disaster area.
3080	3080	22 (31) Beginning with taxable years ending on or after
3081	3081	23 December 31, 1995 and ending with taxable years ending on
3082	3082	24 or before December 31, 2004, personal property that is
3083	3083	25 used in the performance of infrastructure repairs in this
3084	3084	26 State, including, but not limited to, municipal roads and
3085	3085
3086	3086
3087	3087
3088	3088
3089	3089
3090	3090	HB2509 - 85 - LRB104 11822 HLH 21912 b
3091	3091
3092	3092
3093	3093	HB2509- 86 -LRB104 11822 HLH 21912 b HB2509 - 86 - LRB104 11822 HLH 21912 b
3094	3094	HB2509 - 86 - LRB104 11822 HLH 21912 b
3095	3095	1 streets, access roads, bridges, sidewalks, waste disposal
3096	3096	2 systems, water and sewer line extensions, water
3097	3097	3 distribution and purification facilities, storm water
3098	3098	4 drainage and retention facilities, and sewage treatment
3099	3099	5 facilities, resulting from a State or federally declared
3100	3100	6 disaster in Illinois or bordering Illinois when such
3101	3101	7 repairs are initiated on facilities located in the
3102	3102	8 declared disaster area within 6 months after the disaster.
3103	3103	9 (32) Beginning July 1, 1999, game or game birds sold
3104	3104	10 at a "game breeding and hunting preserve area" as that
3105	3105	11 term is used in the Wildlife Code. This paragraph is
3106	3106	12 exempt from the provisions of Section 2-70.
3107	3107	13 (33) A motor vehicle, as that term is defined in
3108	3108	14 Section 1-146 of the Illinois Vehicle Code, that is
3109	3109	15 donated to a corporation, limited liability company,
3110	3110	16 society, association, foundation, or institution that is
3111	3111	17 determined by the Department to be organized and operated
3112	3112	18 exclusively for educational purposes. For purposes of this
3113	3113	19 exemption, "a corporation, limited liability company,
3114	3114	20 society, association, foundation, or institution organized
3115	3115	21 and operated exclusively for educational purposes" means
3116	3116	22 all tax-supported public schools, private schools that
3117	3117	23 offer systematic instruction in useful branches of
3118	3118	24 learning by methods common to public schools and that
3119	3119	25 compare favorably in their scope and intensity with the
3120	3120	26 course of study presented in tax-supported schools, and
3121	3121
3122	3122
3123	3123
3124	3124
3125	3125
3126	3126	HB2509 - 86 - LRB104 11822 HLH 21912 b
3127	3127
3128	3128
3129	3129	HB2509- 87 -LRB104 11822 HLH 21912 b HB2509 - 87 - LRB104 11822 HLH 21912 b
3130	3130	HB2509 - 87 - LRB104 11822 HLH 21912 b
3131	3131	1 vocational or technical schools or institutes organized
3132	3132	2 and operated exclusively to provide a course of study of
3133	3133	3 not less than 6 weeks duration and designed to prepare
3134	3134	4 individuals to follow a trade or to pursue a manual,
3135	3135	5 technical, mechanical, industrial, business, or commercial
3136	3136	6 occupation.
3137	3137	7 (34) Beginning January 1, 2000, personal property,
3138	3138	8 including food, purchased through fundraising events for
3139	3139	9 the benefit of a public or private elementary or secondary
3140	3140	10 school, a group of those schools, or one or more school
3141	3141	11 districts if the events are sponsored by an entity
3142	3142	12 recognized by the school district that consists primarily
3143	3143	13 of volunteers and includes parents and teachers of the
3144	3144	14 school children. This paragraph does not apply to
3145	3145	15 fundraising events (i) for the benefit of private home
3146	3146	16 instruction or (ii) for which the fundraising entity
3147	3147	17 purchases the personal property sold at the events from
3148	3148	18 another individual or entity that sold the property for
3149	3149	19 the purpose of resale by the fundraising entity and that
3150	3150	20 profits from the sale to the fundraising entity. This
3151	3151	21 paragraph is exempt from the provisions of Section 2-70.
3152	3152	22 (35) Beginning January 1, 2000 and through December
3153	3153	23 31, 2001, new or used automatic vending machines that
3154	3154	24 prepare and serve hot food and beverages, including
3155	3155	25 coffee, soup, and other items, and replacement parts for
3156	3156	26 these machines. Beginning January 1, 2002 and through June
3157	3157
3158	3158
3159	3159
3160	3160
3161	3161
3162	3162	HB2509 - 87 - LRB104 11822 HLH 21912 b
3163	3163
3164	3164
3165	3165	HB2509- 88 -LRB104 11822 HLH 21912 b HB2509 - 88 - LRB104 11822 HLH 21912 b
3166	3166	HB2509 - 88 - LRB104 11822 HLH 21912 b
3167	3167	1 30, 2003, machines and parts for machines used in
3168	3168	2 commercial, coin-operated amusement and vending business
3169	3169	3 if a use or occupation tax is paid on the gross receipts
3170	3170	4 derived from the use of the commercial, coin-operated
3171	3171	5 amusement and vending machines. This paragraph is exempt
3172	3172	6 from the provisions of Section 2-70.
3173	3173	7 (35-5) Beginning August 23, 2001 and through June 30,
3174	3174	8 2016, food for human consumption that is to be consumed
3175	3175	9 off the premises where it is sold (other than alcoholic
3176	3176	10 beverages, soft drinks, and food that has been prepared
3177	3177	11 for immediate consumption) and prescription and
3178	3178	12 nonprescription medicines, drugs, medical appliances, and
3179	3179	13 insulin, urine testing materials, syringes, and needles
3180	3180	14 used by diabetics, for human use, when purchased for use
3181	3181	15 by a person receiving medical assistance under Article V
3182	3182	16 of the Illinois Public Aid Code who resides in a licensed
3183	3183	17 long-term care facility, as defined in the Nursing Home
3184	3184	18 Care Act, or a licensed facility as defined in the ID/DD
3185	3185	19 Community Care Act, the MC/DD Act, or the Specialized
3186	3186	20 Mental Health Rehabilitation Act of 2013.
3187	3187	21 (36) Beginning August 2, 2001, computers and
3188	3188	22 communications equipment utilized for any hospital purpose
3189	3189	23 and equipment used in the diagnosis, analysis, or
3190	3190	24 treatment of hospital patients sold to a lessor who leases
3191	3191	25 the equipment, under a lease of one year or longer
3192	3192	26 executed or in effect at the time of the purchase, to a
3193	3193
3194	3194
3195	3195
3196	3196
3197	3197
3198	3198	HB2509 - 88 - LRB104 11822 HLH 21912 b
3199	3199
3200	3200
3201	3201	HB2509- 89 -LRB104 11822 HLH 21912 b HB2509 - 89 - LRB104 11822 HLH 21912 b
3202	3202	HB2509 - 89 - LRB104 11822 HLH 21912 b
3203	3203	1 hospital that has been issued an active tax exemption
3204	3204	2 identification number by the Department under Section 1g
3205	3205	3 of this Act. This paragraph is exempt from the provisions
3206	3206	4 of Section 2-70.
3207	3207	5 (37) Beginning August 2, 2001, personal property sold
3208	3208	6 to a lessor who leases the property, under a lease of one
3209	3209	7 year or longer executed or in effect at the time of the
3210	3210	8 purchase, to a governmental body that has been issued an
3211	3211	9 active tax exemption identification number by the
3212	3212	10 Department under Section 1g of this Act. This paragraph is
3213	3213	11 exempt from the provisions of Section 2-70.
3214	3214	12 (38) Beginning on January 1, 2002 and through June 30,
3215	3215	13 2016, tangible personal property purchased from an
3216	3216	14 Illinois retailer by a taxpayer engaged in centralized
3217	3217	15 purchasing activities in Illinois who will, upon receipt
3218	3218	16 of the property in Illinois, temporarily store the
3219	3219	17 property in Illinois (i) for the purpose of subsequently
3220	3220	18 transporting it outside this State for use or consumption
3221	3221	19 thereafter solely outside this State or (ii) for the
3222	3222	20 purpose of being processed, fabricated, or manufactured
3223	3223	21 into, attached to, or incorporated into other tangible
3224	3224	22 personal property to be transported outside this State and
3225	3225	23 thereafter used or consumed solely outside this State. The
3226	3226	24 Director of Revenue shall, pursuant to rules adopted in
3227	3227	25 accordance with the Illinois Administrative Procedure Act,
3228	3228	26 issue a permit to any taxpayer in good standing with the
3229	3229
3230	3230
3231	3231
3232	3232
3233	3233
3234	3234	HB2509 - 89 - LRB104 11822 HLH 21912 b
3235	3235
3236	3236
3237	3237	HB2509- 90 -LRB104 11822 HLH 21912 b HB2509 - 90 - LRB104 11822 HLH 21912 b
3238	3238	HB2509 - 90 - LRB104 11822 HLH 21912 b
3239	3239	1 Department who is eligible for the exemption under this
3240	3240	2 paragraph (38). The permit issued under this paragraph
3241	3241	3 (38) shall authorize the holder, to the extent and in the
3242	3242	4 manner specified in the rules adopted under this Act, to
3243	3243	5 purchase tangible personal property from a retailer exempt
3244	3244	6 from the taxes imposed by this Act. Taxpayers shall
3245	3245	7 maintain all necessary books and records to substantiate
3246	3246	8 the use and consumption of all such tangible personal
3247	3247	9 property outside of the State of Illinois.
3248	3248	10 (39) Beginning January 1, 2008, tangible personal
3249	3249	11 property used in the construction or maintenance of a
3250	3250	12 community water supply, as defined under Section 3.145 of
3251	3251	13 the Environmental Protection Act, that is operated by a
3252	3252	14 not-for-profit corporation that holds a valid water supply
3253	3253	15 permit issued under Title IV of the Environmental
3254	3254	16 Protection Act. This paragraph is exempt from the
3255	3255	17 provisions of Section 2-70.
3256	3256	18 (40) Beginning January 1, 2010 and continuing through
3257	3257	19 December 31, 2029, materials, parts, equipment,
3258	3258	20 components, and furnishings incorporated into or upon an
3259	3259	21 aircraft as part of the modification, refurbishment,
3260	3260	22 completion, replacement, repair, or maintenance of the
3261	3261	23 aircraft. This exemption includes consumable supplies used
3262	3262	24 in the modification, refurbishment, completion,
3263	3263	25 replacement, repair, and maintenance of aircraft. However,
3264	3264	26 until January 1, 2024, this exemption excludes any
3265	3265
3266	3266
3267	3267
3268	3268
3269	3269
3270	3270	HB2509 - 90 - LRB104 11822 HLH 21912 b
3271	3271
3272	3272
3273	3273	HB2509- 91 -LRB104 11822 HLH 21912 b HB2509 - 91 - LRB104 11822 HLH 21912 b
3274	3274	HB2509 - 91 - LRB104 11822 HLH 21912 b
3275	3275	1 materials, parts, equipment, components, and consumable
3276	3276	2 supplies used in the modification, replacement, repair,
3277	3277	3 and maintenance of aircraft engines or power plants,
3278	3278	4 whether such engines or power plants are installed or
3279	3279	5 uninstalled upon any such aircraft. "Consumable supplies"
3280	3280	6 include, but are not limited to, adhesive, tape,
3281	3281	7 sandpaper, general purpose lubricants, cleaning solution,
3282	3282	8 latex gloves, and protective films.
3283	3283	9 Beginning January 1, 2010 and continuing through
3284	3284	10 December 31, 2023, this exemption applies only to the sale
3285	3285	11 of qualifying tangible personal property to persons who
3286	3286	12 modify, refurbish, complete, replace, or maintain an
3287	3287	13 aircraft and who (i) hold an Air Agency Certificate and
3288	3288	14 are empowered to operate an approved repair station by the
3289	3289	15 Federal Aviation Administration, (ii) have a Class IV
3290	3290	16 Rating, and (iii) conduct operations in accordance with
3291	3291	17 Part 145 of the Federal Aviation Regulations. The
3292	3292	18 exemption does not include aircraft operated by a
3293	3293	19 commercial air carrier providing scheduled passenger air
3294	3294	20 service pursuant to authority issued under Part 121 or
3295	3295	21 Part 129 of the Federal Aviation Regulations. From January
3296	3296	22 1, 2024 through December 31, 2029, this exemption applies
3297	3297	23 only to the sale of qualifying tangible personal property
3298	3298	24 to: (A) persons who modify, refurbish, complete, repair,
3299	3299	25 replace, or maintain aircraft and who (i) hold an Air
3300	3300	26 Agency Certificate and are empowered to operate an
3301	3301
3302	3302
3303	3303
3304	3304
3305	3305
3306	3306	HB2509 - 91 - LRB104 11822 HLH 21912 b
3307	3307
3308	3308
3309	3309	HB2509- 92 -LRB104 11822 HLH 21912 b HB2509 - 92 - LRB104 11822 HLH 21912 b
3310	3310	HB2509 - 92 - LRB104 11822 HLH 21912 b
3311	3311	1 approved repair station by the Federal Aviation
3312	3312	2 Administration, (ii) have a Class IV Rating, and (iii)
3313	3313	3 conduct operations in accordance with Part 145 of the
3314	3314	4 Federal Aviation Regulations; and (B) persons who engage
3315	3315	5 in the modification, replacement, repair, and maintenance
3316	3316	6 of aircraft engines or power plants without regard to
3317	3317	7 whether or not those persons meet the qualifications of
3318	3318	8 item (A).
3319	3319	9 The changes made to this paragraph (40) by Public Act
3320	3320	10 98-534 are declarative of existing law. It is the intent
3321	3321	11 of the General Assembly that the exemption under this
3322	3322	12 paragraph (40) applies continuously from January 1, 2010
3323	3323	13 through December 31, 2024; however, no claim for credit or
3324	3324	14 refund is allowed for taxes paid as a result of the
3325	3325	15 disallowance of this exemption on or after January 1, 2015
3326	3326	16 and prior to February 5, 2020 (the effective date of
3327	3327	17 Public Act 101-629).
3328	3328	18 (41) Tangible personal property sold to a
3329	3329	19 public-facilities corporation, as described in Section
3330	3330	20 11-65-10 of the Illinois Municipal Code, for purposes of
3331	3331	21 constructing or furnishing a municipal convention hall,
3332	3332	22 but only if the legal title to the municipal convention
3333	3333	23 hall is transferred to the municipality without any
3334	3334	24 further consideration by or on behalf of the municipality
3335	3335	25 at the time of the completion of the municipal convention
3336	3336	26 hall or upon the retirement or redemption of any bonds or
3337	3337
3338	3338
3339	3339
3340	3340
3341	3341
3342	3342	HB2509 - 92 - LRB104 11822 HLH 21912 b
3343	3343
3344	3344
3345	3345	HB2509- 93 -LRB104 11822 HLH 21912 b HB2509 - 93 - LRB104 11822 HLH 21912 b
3346	3346	HB2509 - 93 - LRB104 11822 HLH 21912 b
3347	3347	1 other debt instruments issued by the public-facilities
3348	3348	2 corporation in connection with the development of the
3349	3349	3 municipal convention hall. This exemption includes
3350	3350	4 existing public-facilities corporations as provided in
3351	3351	5 Section 11-65-25 of the Illinois Municipal Code. This
3352	3352	6 paragraph is exempt from the provisions of Section 2-70.
3353	3353	7 (42) Beginning January 1, 2017 and through December
3354	3354	8 31, 2026, menstrual pads, tampons, and menstrual cups.
3355	3355	9 (43) Merchandise that is subject to the Rental
3356	3356	10 Purchase Agreement Occupation and Use Tax. The purchaser
3357	3357	11 must certify that the item is purchased to be rented
3358	3358	12 subject to a rental-purchase agreement, as defined in the
3359	3359	13 Rental-Purchase Agreement Act, and provide proof of
3360	3360	14 registration under the Rental Purchase Agreement
3361	3361	15 Occupation and Use Tax Act. This paragraph is exempt from
3362	3362	16 the provisions of Section 2-70.
3363	3363	17 (44) Qualified tangible personal property used in the
3364	3364	18 construction or operation of a data center that has been
3365	3365	19 granted a certificate of exemption by the Department of
3366	3366	20 Commerce and Economic Opportunity, whether that tangible
3367	3367	21 personal property is purchased by the owner, operator, or
3368	3368	22 tenant of the data center or by a contractor or
3369	3369	23 subcontractor of the owner, operator, or tenant. Data
3370	3370	24 centers that would have qualified for a certificate of
3371	3371	25 exemption prior to January 1, 2020 had Public Act 101-31
3372	3372	26 been in effect, may apply for and obtain an exemption for
3373	3373
3374	3374
3375	3375
3376	3376
3377	3377
3378	3378	HB2509 - 93 - LRB104 11822 HLH 21912 b
3379	3379
3380	3380
3381	3381	HB2509- 94 -LRB104 11822 HLH 21912 b HB2509 - 94 - LRB104 11822 HLH 21912 b
3382	3382	HB2509 - 94 - LRB104 11822 HLH 21912 b
3383	3383	1 subsequent purchases of computer equipment or enabling
3384	3384	2 software purchased or leased to upgrade, supplement, or
3385	3385	3 replace computer equipment or enabling software purchased
3386	3386	4 or leased in the original investment that would have
3387	3387	5 qualified.
3388	3388	6 The Department of Commerce and Economic Opportunity
3389	3389	7 shall grant a certificate of exemption under this item
3390	3390	8 (44) to qualified data centers as defined by Section
3391	3391	9 605-1025 of the Department of Commerce and Economic
3392	3392	10 Opportunity Law of the Civil Administrative Code of
3393	3393	11 Illinois.
3394	3394	12 For the purposes of this item (44):
3395	3395	13 "Data center" means a building or a series of
3396	3396	14 buildings rehabilitated or constructed to house
3397	3397	15 working servers in one physical location or multiple
3398	3398	16 sites within the State of Illinois.
3399	3399	17 "Qualified tangible personal property" means:
3400	3400	18 electrical systems and equipment; climate control and
3401	3401	19 chilling equipment and systems; mechanical systems and
3402	3402	20 equipment; monitoring and secure systems; emergency
3403	3403	21 generators; hardware; computers; servers; data storage
3404	3404	22 devices; network connectivity equipment; racks;
3405	3405	23 cabinets; telecommunications cabling infrastructure;
3406	3406	24 raised floor systems; peripheral components or
3407	3407	25 systems; software; mechanical, electrical, or plumbing
3408	3408	26 systems; battery systems; cooling systems and towers;
3409	3409
3410	3410
3411	3411
3412	3412
3413	3413
3414	3414	HB2509 - 94 - LRB104 11822 HLH 21912 b
3415	3415
3416	3416
3417	3417	HB2509- 95 -LRB104 11822 HLH 21912 b HB2509 - 95 - LRB104 11822 HLH 21912 b
3418	3418	HB2509 - 95 - LRB104 11822 HLH 21912 b
3419	3419	1 temperature control systems; other cabling; and other
3420	3420	2 data center infrastructure equipment and systems
3421	3421	3 necessary to operate qualified tangible personal
3422	3422	4 property, including fixtures; and component parts of
3423	3423	5 any of the foregoing, including installation,
3424	3424	6 maintenance, repair, refurbishment, and replacement of
3425	3425	7 qualified tangible personal property to generate,
3426	3426	8 transform, transmit, distribute, or manage electricity
3427	3427	9 necessary to operate qualified tangible personal
3428	3428	10 property; and all other tangible personal property
3429	3429	11 that is essential to the operations of a computer data
3430	3430	12 center. The term "qualified tangible personal
3431	3431	13 property" also includes building materials physically
3432	3432	14 incorporated into the qualifying data center. To
3433	3433	15 document the exemption allowed under this Section, the
3434	3434	16 retailer must obtain from the purchaser a copy of the
3435	3435	17 certificate of eligibility issued by the Department of
3436	3436	18 Commerce and Economic Opportunity.
3437	3437	19 This item (44) is exempt from the provisions of
3438	3438	20 Section 2-70.
3439	3439	21 (45) Beginning January 1, 2020 and through December
3440	3440	22 31, 2020, sales of tangible personal property made by a
3441	3441	23 marketplace seller over a marketplace for which tax is due
3442	3442	24 under this Act but for which use tax has been collected and
3443	3443	25 remitted to the Department by a marketplace facilitator
3444	3444	26 under Section 2d of the Use Tax Act are exempt from tax
3445	3445
3446	3446
3447	3447
3448	3448
3449	3449
3450	3450	HB2509 - 95 - LRB104 11822 HLH 21912 b
3451	3451
3452	3452
3453	3453	HB2509- 96 -LRB104 11822 HLH 21912 b HB2509 - 96 - LRB104 11822 HLH 21912 b
3454	3454	HB2509 - 96 - LRB104 11822 HLH 21912 b
3455	3455	1 under this Act. A marketplace seller claiming this
3456	3456	2 exemption shall maintain books and records demonstrating
3457	3457	3 that the use tax on such sales has been collected and
3458	3458	4 remitted by a marketplace facilitator. Marketplace sellers
3459	3459	5 that have properly remitted tax under this Act on such
3460	3460	6 sales may file a claim for credit as provided in Section 6
3461	3461	7 of this Act. No claim is allowed, however, for such taxes
3462	3462	8 for which a credit or refund has been issued to the
3463	3463	9 marketplace facilitator under the Use Tax Act, or for
3464	3464	10 which the marketplace facilitator has filed a claim for
3465	3465	11 credit or refund under the Use Tax Act.
3466	3466	12 (46) Beginning July 1, 2022, breast pumps, breast pump
3467	3467	13 collection and storage supplies, and breast pump kits.
3468	3468	14 This item (46) is exempt from the provisions of Section
3469	3469	15 2-70. As used in this item (46):
3470	3470	16 "Breast pump" means an electrically controlled or
3471	3471	17 manually controlled pump device designed or marketed to be
3472	3472	18 used to express milk from a human breast during lactation,
3473	3473	19 including the pump device and any battery, AC adapter, or
3474	3474	20 other power supply unit that is used to power the pump
3475	3475	21 device and is packaged and sold with the pump device at the
3476	3476	22 time of sale.
3477	3477	23 "Breast pump collection and storage supplies" means
3478	3478	24 items of tangible personal property designed or marketed
3479	3479	25 to be used in conjunction with a breast pump to collect
3480	3480	26 milk expressed from a human breast and to store collected
3481	3481
3482	3482
3483	3483
3484	3484
3485	3485
3486	3486	HB2509 - 96 - LRB104 11822 HLH 21912 b
3487	3487
3488	3488
3489	3489	HB2509- 97 -LRB104 11822 HLH 21912 b HB2509 - 97 - LRB104 11822 HLH 21912 b
3490	3490	HB2509 - 97 - LRB104 11822 HLH 21912 b
3491	3491	1 milk until it is ready for consumption.
3492	3492	2 "Breast pump collection and storage supplies"
3493	3493	3 includes, but is not limited to: breast shields and breast
3494	3494	4 shield connectors; breast pump tubes and tubing adapters;
3495	3495	5 breast pump valves and membranes; backflow protectors and
3496	3496	6 backflow protector adaptors; bottles and bottle caps
3497	3497	7 specific to the operation of the breast pump; and breast
3498	3498	8 milk storage bags.
3499	3499	9 "Breast pump collection and storage supplies" does not
3500	3500	10 include: (1) bottles and bottle caps not specific to the
3501	3501	11 operation of the breast pump; (2) breast pump travel bags
3502	3502	12 and other similar carrying accessories, including ice
3503	3503	13 packs, labels, and other similar products; (3) breast pump
3504	3504	14 cleaning supplies; (4) nursing bras, bra pads, breast
3505	3505	15 shells, and other similar products; and (5) creams,
3506	3506	16 ointments, and other similar products that relieve
3507	3507	17 breastfeeding-related symptoms or conditions of the
3508	3508	18 breasts or nipples, unless sold as part of a breast pump
3509	3509	19 kit that is pre-packaged by the breast pump manufacturer
3510	3510	20 or distributor.
3511	3511	21 "Breast pump kit" means a kit that: (1) contains no
3512	3512	22 more than a breast pump, breast pump collection and
3513	3513	23 storage supplies, a rechargeable battery for operating the
3514	3514	24 breast pump, a breastmilk cooler, bottle stands, ice
3515	3515	25 packs, and a breast pump carrying case; and (2) is
3516	3516	26 pre-packaged as a breast pump kit by the breast pump
3517	3517
3518	3518
3519	3519
3520	3520
3521	3521
3522	3522	HB2509 - 97 - LRB104 11822 HLH 21912 b
3523	3523
3524	3524
3525	3525	HB2509- 98 -LRB104 11822 HLH 21912 b HB2509 - 98 - LRB104 11822 HLH 21912 b
3526	3526	HB2509 - 98 - LRB104 11822 HLH 21912 b
3527	3527	1 manufacturer or distributor.
3528	3528	2 (47) Tangible personal property sold by or on behalf
3529	3529	3 of the State Treasurer pursuant to the Revised Uniform
3530	3530	4 Unclaimed Property Act. This item (47) is exempt from the
3531	3531	5 provisions of Section 2-70.
3532	3532	6 (48) Beginning on January 1, 2024, tangible personal
3533	3533	7 property purchased by an active duty member of the armed
3534	3534	8 forces of the United States who presents valid military
3535	3535	9 identification and purchases the property using a form of
3536	3536	10 payment where the federal government is the payor. The
3537	3537	11 member of the armed forces must complete, at the point of
3538	3538	12 sale, a form prescribed by the Department of Revenue
3539	3539	13 documenting that the transaction is eligible for the
3540	3540	14 exemption under this paragraph. Retailers must keep the
3541	3541	15 form as documentation of the exemption in their records
3542	3542	16 for a period of not less than 6 years. "Armed forces of the
3543	3543	17 United States" means the United States Army, Navy, Air
3544	3544	18 Force, Space Force, Marine Corps, or Coast Guard. This
3545	3545	19 paragraph is exempt from the provisions of Section 2-70.
3546	3546	20 (49) Beginning July 1, 2024, home-delivered meals
3547	3547	21 provided to Medicare or Medicaid recipients when payment
3548	3548	22 is made by an intermediary, such as a Medicare
3549	3549	23 Administrative Contractor, a Managed Care Organization, or
3550	3550	24 a Medicare Advantage Organization, pursuant to a
3551	3551	25 government contract. This paragraph (49) is exempt from
3552	3552	26 the provisions of Section 2-70.
3553	3553
3554	3554
3555	3555
3556	3556
3557	3557
3558	3558	HB2509 - 98 - LRB104 11822 HLH 21912 b
3559	3559
3560	3560
3561	3561	HB2509- 99 -LRB104 11822 HLH 21912 b HB2509 - 99 - LRB104 11822 HLH 21912 b
3562	3562	HB2509 - 99 - LRB104 11822 HLH 21912 b
3563	3563	1 (50) (49) Beginning on January 1, 2026, as further
3564	3564	2 defined in Section 2-10, food for human consumption that
3565	3565	3 is to be consumed off the premises where it is sold (other
3566	3566	4 than alcoholic beverages, food consisting of or infused
3567	3567	5 with adult use cannabis, soft drinks, candy, and food that
3568	3568	6 has been prepared for immediate consumption). This item
3569	3569	7 (50) (49) is exempt from the provisions of Section 2-70.
3570	3570	8 (51) (49) Gross receipts from the lease of the
3571	3571	9 following tangible personal property:
3572	3572	10 (1) computer software transferred subject to a
3573	3573	11 license that meets the following requirements:
3574	3574	12 (A) it is evidenced by a written agreement
3575	3575	13 signed by the licensor and the customer;
3576	3576	14 (i) an electronic agreement in which the
3577	3577	15 customer accepts the license by means of an
3578	3578	16 electronic signature that is verifiable and
3579	3579	17 can be authenticated and is attached to or
3580	3580	18 made part of the license will comply with this
3581	3581	19 requirement;
3582	3582	20 (ii) a license agreement in which the
3583	3583	21 customer electronically accepts the terms by
3584	3584	22 clicking "I agree" does not comply with this
3585	3585	23 requirement;
3586	3586	24 (B) it restricts the customer's duplication
3587	3587	25 and use of the software;
3588	3588	26 (C) it prohibits the customer from licensing,
3589	3589
3590	3590
3591	3591
3592	3592
3593	3593
3594	3594	HB2509 - 99 - LRB104 11822 HLH 21912 b
3595	3595
3596	3596
3597	3597	HB2509- 100 -LRB104 11822 HLH 21912 b HB2509 - 100 - LRB104 11822 HLH 21912 b
3598	3598	HB2509 - 100 - LRB104 11822 HLH 21912 b
3599	3599	1 sublicensing, or transferring the software to a
3600	3600	2 third party (except to a related party) without
3601	3601	3 the permission and continued control of the
3602	3602	4 licensor;
3603	3603	5 (D) the licensor has a policy of providing
3604	3604	6 another copy at minimal or no charge if the
3605	3605	7 customer loses or damages the software, or of
3606	3606	8 permitting the licensee to make and keep an
3607	3607	9 archival copy, and such policy is either stated in
3608	3608	10 the license agreement, supported by the licensor's
3609	3609	11 books and records, or supported by a notarized
3610	3610	12 statement made under penalties of perjury by the
3611	3611	13 licensor; and
3612	3612	14 (E) the customer must destroy or return all
3613	3613	15 copies of the software to the licensor at the end
3614	3614	16 of the license period; this provision is deemed to
3615	3615	17 be met, in the case of a perpetual license,
3616	3616	18 without being set forth in the license agreement;
3617	3617	19 and
3618	3618	20 (2) property that is subject to a tax on lease
3619	3619	21 receipts imposed by a home rule unit of local
3620	3620	22 government if the ordinance imposing that tax was
3621	3621	23 adopted prior to January 1, 2023.
3622	3622	24 (52) Materials furnished to a common interest
3623	3623	25 community association pursuant to a contract entered into
3624	3624	26 with the highway commissioner of a road district under
3625	3625
3626	3626
3627	3627
3628	3628
3629	3629
3630	3630	HB2509 - 100 - LRB104 11822 HLH 21912 b
3631	3631
3632	3632
3633	3633	HB2509- 101 -LRB104 11822 HLH 21912 b HB2509 - 101 - LRB104 11822 HLH 21912 b
3634	3634	HB2509 - 101 - LRB104 11822 HLH 21912 b
3635	3635
3636	3636
3637	3637
3638	3638
3639	3639
3640	3640	HB2509 - 101 - LRB104 11822 HLH 21912 b