Illinois House Bill HB2509 Latest Draft

                            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
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
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
    LRB104 11822 HLH 21912 b
A BILL FOR
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1  AN ACT concerning revenue.
2  Be it enacted by the People of the State of Illinois,
3  represented in the General Assembly:
4  Section 5. The Use Tax Act is amended by changing Section
5  3-5 as follows:
6  (35 ILCS 105/3-5)
7  Sec. 3-5. Exemptions. Use, which, on and after January 1,
8  2025, includes use by a lessee, of the following tangible
9  personal property is exempt from the tax imposed by this Act:
10  (1) Personal property purchased from a corporation,
11  society, association, foundation, institution, or
12  organization, other than a limited liability company, that is
13  organized and operated as a not-for-profit service enterprise
14  for the benefit of persons 65 years of age or older if the
15  personal property was not purchased by the enterprise for the
16  purpose of resale by the enterprise.
17  (2) Personal property purchased by a not-for-profit
18  Illinois county fair association for use in conducting,
19  operating, or promoting the county fair.
20  (3) Personal property purchased by a not-for-profit arts
21  or cultural organization that establishes, by proof required
22  by the Department by rule, that it has received an exemption
23  under Section 501(c)(3) of the Internal Revenue Code and that

 

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
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.
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    LRB104 11822 HLH 21912 b
A BILL FOR

 

 

35 ILCS 105/3-5
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/2-5



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1  is organized and operated primarily for the presentation or
2  support of arts or cultural programming, activities, or
3  services. These organizations include, but are not limited to,
4  music and dramatic arts organizations such as symphony
5  orchestras and theatrical groups, arts and cultural service
6  organizations, local arts councils, visual arts organizations,
7  and media arts organizations. On and after July 1, 2001 (the
8  effective date of Public Act 92-35), however, an entity
9  otherwise eligible for this exemption shall not make tax-free
10  purchases unless it has an active identification number issued
11  by the Department.
12  (4) Except as otherwise provided in this Act, personal
13  property purchased by a governmental body, by a corporation,
14  society, association, foundation, or institution organized and
15  operated exclusively for charitable, religious, or educational
16  purposes, or by a not-for-profit corporation, society,
17  association, foundation, institution, or organization that has
18  no compensated officers or employees and that is organized and
19  operated primarily for the recreation of persons 55 years of
20  age or older. A limited liability company may qualify for the
21  exemption under this paragraph only if the limited liability
22  company is organized and operated exclusively for educational
23  purposes. On and after July 1, 1987, however, no entity
24  otherwise eligible for this exemption shall make tax-free
25  purchases unless it has an active exemption identification
26  number issued by the Department.

 

 

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1  (5) Until July 1, 2003, a passenger car that is a
2  replacement vehicle to the extent that the purchase price of
3  the car is subject to the Replacement Vehicle Tax.
4  (6) Until July 1, 2003 and beginning again on September 1,
5  2004 through August 30, 2014, graphic arts machinery and
6  equipment, including repair and replacement parts, both new
7  and used, and including that manufactured on special order,
8  certified by the purchaser to be used primarily for graphic
9  arts production, and including machinery and equipment
10  purchased for lease. Equipment includes chemicals or chemicals
11  acting as catalysts but only if the chemicals or chemicals
12  acting as catalysts effect a direct and immediate change upon
13  a graphic arts product. Beginning on July 1, 2017, graphic
14  arts machinery and equipment is included in the manufacturing
15  and assembling machinery and equipment exemption under
16  paragraph (18).
17  (7) Farm chemicals.
18  (8) Legal tender, currency, medallions, or gold or silver
19  coinage issued by the State of Illinois, the government of the
20  United States of America, or the government of any foreign
21  country, and bullion.
22  (9) Personal property purchased from a teacher-sponsored
23  student organization affiliated with an elementary or
24  secondary school located in Illinois.
25  (10) A motor vehicle that is used for automobile renting,
26  as defined in the Automobile Renting Occupation and Use Tax

 

 

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1  Act.
2  (11) Farm machinery and equipment, both new and used,
3  including that manufactured on special order, certified by the
4  purchaser to be used primarily for production agriculture or
5  State or federal agricultural programs, including individual
6  replacement parts for the machinery and equipment, including
7  machinery and equipment purchased for lease, and including
8  implements of husbandry defined in Section 1-130 of the
9  Illinois Vehicle Code, farm machinery and agricultural
10  chemical and fertilizer spreaders, and nurse wagons required
11  to be registered under Section 3-809 of the Illinois Vehicle
12  Code, but excluding other motor vehicles required to be
13  registered under the Illinois Vehicle Code. Horticultural
14  polyhouses or hoop houses used for propagating, growing, or
15  overwintering plants shall be considered farm machinery and
16  equipment under this item (11). Agricultural chemical tender
17  tanks and dry boxes shall include units sold separately from a
18  motor vehicle required to be licensed and units sold mounted
19  on a motor vehicle required to be licensed if the selling price
20  of the tender is separately stated.
21  Farm machinery and equipment shall include precision
22  farming equipment that is installed or purchased to be
23  installed on farm machinery and equipment, including, but not
24  limited to, tractors, harvesters, sprayers, planters, seeders,
25  or spreaders. Precision farming equipment includes, but is not
26  limited to, soil testing sensors, computers, monitors,

 

 

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1  software, global positioning and mapping systems, and other
2  such equipment.
3  Farm machinery and equipment also includes computers,
4  sensors, software, and related equipment used primarily in the
5  computer-assisted operation of production agriculture
6  facilities, equipment, and activities such as, but not limited
7  to, the collection, monitoring, and correlation of animal and
8  crop data for the purpose of formulating animal diets and
9  agricultural chemicals.
10  Beginning on January 1, 2024, farm machinery and equipment
11  also includes electrical power generation equipment used
12  primarily for production agriculture.
13  This item (11) is exempt from the provisions of Section
14  3-90.
15  (12) Until June 30, 2013, fuel and petroleum products sold
16  to or used by an air common carrier, certified by the carrier
17  to be used for consumption, shipment, or storage in the
18  conduct of its business as an air common carrier, for a flight
19  destined for or returning from a location or locations outside
20  the United States without regard to previous or subsequent
21  domestic stopovers.
22  Beginning July 1, 2013, fuel and petroleum products sold
23  to or used by an air carrier, certified by the carrier to be
24  used for consumption, shipment, or storage in the conduct of
25  its business as an air common carrier, for a flight that (i) is
26  engaged in foreign trade or is engaged in trade between the

 

 

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1  United States and any of its possessions and (ii) transports
2  at least one individual or package for hire from the city of
3  origination to the city of final destination on the same
4  aircraft, without regard to a change in the flight number of
5  that aircraft.
6  (13) Proceeds of mandatory service charges separately
7  stated on customers' bills for the purchase and consumption of
8  food and beverages purchased at retail from a retailer, to the
9  extent that the proceeds of the service charge are in fact
10  turned over as tips or as a substitute for tips to the
11  employees who participate directly in preparing, serving,
12  hosting or cleaning up the food or beverage function with
13  respect to which the service charge is imposed.
14  (14) Until July 1, 2003, oil field exploration, drilling,
15  and production equipment, including (i) rigs and parts of
16  rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
17  pipe and tubular goods, including casing and drill strings,
18  (iii) pumps and pump-jack units, (iv) storage tanks and flow
19  lines, (v) any individual replacement part for oil field
20  exploration, drilling, and production equipment, and (vi)
21  machinery and equipment purchased for lease; but excluding
22  motor vehicles required to be registered under the Illinois
23  Vehicle Code.
24  (15) Photoprocessing machinery and equipment, including
25  repair and replacement parts, both new and used, including
26  that manufactured on special order, certified by the purchaser

 

 

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1  to be used primarily for photoprocessing, and including
2  photoprocessing machinery and equipment purchased for lease.
3  (16) Until July 1, 2028, coal and aggregate exploration,
4  mining, off-highway hauling, processing, maintenance, and
5  reclamation equipment, including replacement parts and
6  equipment, and including equipment purchased for lease, but
7  excluding motor vehicles required to be registered under the
8  Illinois Vehicle Code. The changes made to this Section by
9  Public Act 97-767 apply on and after July 1, 2003, but no claim
10  for credit or refund is allowed on or after August 16, 2013
11  (the effective date of Public Act 98-456) for such taxes paid
12  during the period beginning July 1, 2003 and ending on August
13  16, 2013 (the effective date of Public Act 98-456).
14  (17) Until July 1, 2003, distillation machinery and
15  equipment, sold as a unit or kit, assembled or installed by the
16  retailer, certified by the user to be used only for the
17  production of ethyl alcohol that will be used for consumption
18  as motor fuel or as a component of motor fuel for the personal
19  use of the user, and not subject to sale or resale.
20  (18) Manufacturing and assembling machinery and equipment
21  used primarily in the process of manufacturing or assembling
22  tangible personal property for wholesale or retail sale or
23  lease, whether that sale or lease is made directly by the
24  manufacturer or by some other person, whether the materials
25  used in the process are owned by the manufacturer or some other
26  person, or whether that sale or lease is made apart from or as

 

 

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1  an incident to the seller's engaging in the service occupation
2  of producing machines, tools, dies, jigs, patterns, gauges, or
3  other similar items of no commercial value on special order
4  for a particular purchaser. The exemption provided by this
5  paragraph (18) includes production related tangible personal
6  property, as defined in Section 3-50, purchased on or after
7  July 1, 2019. The exemption provided by this paragraph (18)
8  does not include machinery and equipment used in (i) the
9  generation of electricity for wholesale or retail sale; (ii)
10  the generation or treatment of natural or artificial gas for
11  wholesale or retail sale that is delivered to customers
12  through pipes, pipelines, or mains; or (iii) the treatment of
13  water for wholesale or retail sale that is delivered to
14  customers through pipes, pipelines, or mains. The provisions
15  of Public Act 98-583 are declaratory of existing law as to the
16  meaning and scope of this exemption. Beginning on July 1,
17  2017, the exemption provided by this paragraph (18) includes,
18  but is not limited to, graphic arts machinery and equipment,
19  as defined in paragraph (6) of this Section.
20  (19) Personal property delivered to a purchaser or
21  purchaser's donee inside Illinois when the purchase order for
22  that personal property was received by a florist located
23  outside Illinois who has a florist located inside Illinois
24  deliver the personal property.
25  (20) Semen used for artificial insemination of livestock
26  for direct agricultural production.

 

 

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1  (21) Horses, or interests in horses, registered with and
2  meeting the requirements of any of the Arabian Horse Club
3  Registry of America, Appaloosa Horse Club, American Quarter
4  Horse Association, United States Trotting Association, or
5  Jockey Club, as appropriate, used for purposes of breeding or
6  racing for prizes. This item (21) is exempt from the
7  provisions of Section 3-90, and the exemption provided for
8  under this item (21) applies for all periods beginning May 30,
9  1995, but no claim for credit or refund is allowed on or after
10  January 1, 2008 for such taxes paid during the period
11  beginning May 30, 2000 and ending on January 1, 2008.
12  (22) Computers and communications equipment utilized for
13  any hospital purpose and equipment used in the diagnosis,
14  analysis, or treatment of hospital patients purchased by a
15  lessor who leases the equipment, under a lease of one year or
16  longer executed or in effect at the time the lessor would
17  otherwise be subject to the tax imposed by this Act, to a
18  hospital that has been issued an active tax exemption
19  identification number by the Department under Section 1g of
20  the Retailers' Occupation Tax Act. If the equipment is leased
21  in a manner that does not qualify for this exemption or is used
22  in any other non-exempt manner, the lessor shall be liable for
23  the tax imposed under this Act or the Service Use Tax Act, as
24  the case may be, based on the fair market value of the property
25  at the time the non-qualifying use occurs. No lessor shall
26  collect or attempt to collect an amount (however designated)

 

 

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1  that purports to reimburse that lessor for the tax imposed by
2  this Act or the Service Use Tax Act, as the case may be, if the
3  tax has not been paid by the lessor. If a lessor improperly
4  collects any such amount from the lessee, the lessee shall
5  have a legal right to claim a refund of that amount from the
6  lessor. If, however, that amount is not refunded to the lessee
7  for any reason, the lessor is liable to pay that amount to the
8  Department.
9  (23) Personal property purchased by a lessor who leases
10  the property, under a lease of one year or longer executed or
11  in effect at the time the lessor would otherwise be subject to
12  the tax imposed by this Act, to a governmental body that has
13  been issued an active sales tax exemption identification
14  number by the Department under Section 1g of the Retailers'
15  Occupation Tax Act. If the property is leased in a manner that
16  does not qualify for this exemption or used in any other
17  non-exempt manner, the lessor shall be liable for the tax
18  imposed under this Act or the Service Use Tax Act, as the case
19  may be, based on the fair market value of the property at the
20  time the non-qualifying use occurs. No lessor shall collect or
21  attempt to collect an amount (however designated) that
22  purports to reimburse that lessor for the tax imposed by this
23  Act or the Service Use Tax Act, as the case may be, if the tax
24  has not been paid by the lessor. If a lessor improperly
25  collects any such amount from the lessee, the lessee shall
26  have a legal right to claim a refund of that amount from the

 

 

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1  lessor. If, however, that amount is not refunded to the lessee
2  for any reason, the lessor is liable to pay that amount to the
3  Department.
4  (24) Beginning with taxable years ending on or after
5  December 31, 1995 and ending with taxable years ending on or
6  before December 31, 2004, personal property that is donated
7  for disaster relief to be used in a State or federally declared
8  disaster area in Illinois or bordering Illinois by a
9  manufacturer or retailer that is registered in this State to a
10  corporation, society, association, foundation, or institution
11  that has been issued a sales tax exemption identification
12  number by the Department that assists victims of the disaster
13  who reside within the declared disaster area.
14  (25) Beginning with taxable years ending on or after
15  December 31, 1995 and ending with taxable years ending on or
16  before December 31, 2004, personal property that is used in
17  the performance of infrastructure repairs in this State,
18  including, but not limited to, municipal roads and streets,
19  access roads, bridges, sidewalks, waste disposal systems,
20  water and sewer line extensions, water distribution and
21  purification facilities, storm water drainage and retention
22  facilities, and sewage treatment facilities, resulting from a
23  State or federally declared disaster in Illinois or bordering
24  Illinois when such repairs are initiated on facilities located
25  in the declared disaster area within 6 months after the
26  disaster.

 

 

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1  (26) Beginning July 1, 1999, game or game birds purchased
2  at a "game breeding and hunting preserve area" as that term is
3  used in the Wildlife Code. This paragraph is exempt from the
4  provisions of Section 3-90.
5  (27) A motor vehicle, as that term is defined in Section
6  1-146 of the Illinois Vehicle Code, that is donated to a
7  corporation, limited liability company, society, association,
8  foundation, or institution that is determined by the
9  Department to be organized and operated exclusively for
10  educational purposes. For purposes of this exemption, "a
11  corporation, limited liability company, society, association,
12  foundation, or institution organized and operated exclusively
13  for educational purposes" means all tax-supported public
14  schools, private schools that offer systematic instruction in
15  useful branches of learning by methods common to public
16  schools and that compare favorably in their scope and
17  intensity with the course of study presented in tax-supported
18  schools, and vocational or technical schools or institutes
19  organized and operated exclusively to provide a course of
20  study of not less than 6 weeks duration and designed to prepare
21  individuals to follow a trade or to pursue a manual,
22  technical, mechanical, industrial, business, or commercial
23  occupation.
24  (28) Beginning January 1, 2000, personal property,
25  including food, purchased through fundraising events for the
26  benefit of a public or private elementary or secondary school,

 

 

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1  a group of those schools, or one or more school districts if
2  the events are sponsored by an entity recognized by the school
3  district that consists primarily of volunteers and includes
4  parents and teachers of the school children. This paragraph
5  does not apply to fundraising events (i) for the benefit of
6  private home instruction or (ii) for which the fundraising
7  entity purchases the personal property sold at the events from
8  another individual or entity that sold the property for the
9  purpose of resale by the fundraising entity and that profits
10  from the sale to the fundraising entity. This paragraph is
11  exempt from the provisions of Section 3-90.
12  (29) Beginning January 1, 2000 and through December 31,
13  2001, new or used automatic vending machines that prepare and
14  serve hot food and beverages, including coffee, soup, and
15  other items, and replacement parts for these machines.
16  Beginning January 1, 2002 and through June 30, 2003, machines
17  and parts for machines used in commercial, coin-operated
18  amusement and vending business if a use or occupation tax is
19  paid on the gross receipts derived from the use of the
20  commercial, coin-operated amusement and vending machines. This
21  paragraph is exempt from the provisions of Section 3-90.
22  (30) Beginning January 1, 2001 and through June 30, 2016,
23  food for human consumption that is to be consumed off the
24  premises where it is sold (other than alcoholic beverages,
25  soft drinks, and food that has been prepared for immediate
26  consumption) and prescription and nonprescription medicines,

 

 

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1  drugs, medical appliances, and insulin, urine testing
2  materials, syringes, and needles used by diabetics, for human
3  use, when purchased for use by a person receiving medical
4  assistance under Article V of the Illinois Public Aid Code who
5  resides in a licensed long-term care facility, as defined in
6  the Nursing Home Care Act, or in a licensed facility as defined
7  in the ID/DD Community Care Act, the MC/DD Act, or the
8  Specialized Mental Health Rehabilitation Act of 2013.
9  (31) Beginning on August 2, 2001 (the effective date of
10  Public Act 92-227), computers and communications equipment
11  utilized for any hospital purpose and equipment used in the
12  diagnosis, analysis, or treatment of hospital patients
13  purchased by a lessor who leases the equipment, under a lease
14  of one year or longer executed or in effect at the time the
15  lessor would otherwise be subject to the tax imposed by this
16  Act, to a hospital that has been issued an active tax exemption
17  identification number by the Department under Section 1g of
18  the Retailers' Occupation Tax Act. If the equipment is leased
19  in a manner that does not qualify for this exemption or is used
20  in any other nonexempt manner, the lessor shall be liable for
21  the tax imposed under this Act or the Service Use Tax Act, as
22  the case may be, based on the fair market value of the property
23  at the time the nonqualifying use occurs. No lessor shall
24  collect or attempt to collect an amount (however designated)
25  that purports to reimburse that lessor for the tax imposed by
26  this Act or the Service Use Tax Act, as the case may be, if the

 

 

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1  tax has not been paid by the lessor. If a lessor improperly
2  collects any such amount from the lessee, the lessee shall
3  have a legal right to claim a refund of that amount from the
4  lessor. If, however, that amount is not refunded to the lessee
5  for any reason, the lessor is liable to pay that amount to the
6  Department. This paragraph is exempt from the provisions of
7  Section 3-90.
8  (32) Beginning on August 2, 2001 (the effective date of
9  Public Act 92-227), personal property purchased by a lessor
10  who leases the property, under a lease of one year or longer
11  executed or in effect at the time the lessor would otherwise be
12  subject to the tax imposed by this Act, to a governmental body
13  that has been issued an active sales tax exemption
14  identification number by the Department under Section 1g of
15  the Retailers' Occupation Tax Act. If the property is leased
16  in a manner that does not qualify for this exemption or used in
17  any other nonexempt manner, the lessor shall be liable for the
18  tax imposed under this Act or the Service Use Tax Act, as the
19  case may be, based on the fair market value of the property at
20  the time the nonqualifying use occurs. No lessor shall collect
21  or attempt to collect an amount (however designated) that
22  purports to reimburse that lessor for the tax imposed by this
23  Act or the Service Use Tax Act, as the case may be, if the tax
24  has not been paid by the lessor. If a lessor improperly
25  collects any such amount from the lessee, the lessee shall
26  have a legal right to claim a refund of that amount from the

 

 

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1  lessor. If, however, that amount is not refunded to the lessee
2  for any reason, the lessor is liable to pay that amount to the
3  Department. This paragraph is exempt from the provisions of
4  Section 3-90.
5  (33) On and after July 1, 2003 and through June 30, 2004,
6  the use in this State of motor vehicles of the second division
7  with a gross vehicle weight in excess of 8,000 pounds and that
8  are subject to the commercial distribution fee imposed under
9  Section 3-815.1 of the Illinois Vehicle Code. Beginning on
10  July 1, 2004 and through June 30, 2005, the use in this State
11  of motor vehicles of the second division: (i) with a gross
12  vehicle weight rating in excess of 8,000 pounds; (ii) that are
13  subject to the commercial distribution fee imposed under
14  Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
15  are primarily used for commercial purposes. Through June 30,
16  2005, this exemption applies to repair and replacement parts
17  added after the initial purchase of such a motor vehicle if
18  that motor vehicle is used in a manner that would qualify for
19  the rolling stock exemption otherwise provided for in this
20  Act. For purposes of this paragraph, the term "used for
21  commercial purposes" means the transportation of persons or
22  property in furtherance of any commercial or industrial
23  enterprise, whether for-hire or not.
24  (34) Beginning January 1, 2008, tangible personal property
25  used in the construction or maintenance of a community water
26  supply, as defined under Section 3.145 of the Environmental

 

 

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1  Protection Act, that is operated by a not-for-profit
2  corporation that holds a valid water supply permit issued
3  under Title IV of the Environmental Protection Act. This
4  paragraph is exempt from the provisions of Section 3-90.
5  (35) Beginning January 1, 2010 and continuing through
6  December 31, 2029, materials, parts, equipment, components,
7  and furnishings incorporated into or upon an aircraft as part
8  of the modification, refurbishment, completion, replacement,
9  repair, or maintenance of the aircraft. This exemption
10  includes consumable supplies used in the modification,
11  refurbishment, completion, replacement, repair, and
12  maintenance of aircraft. However, until January 1, 2024, this
13  exemption excludes any materials, parts, equipment,
14  components, and consumable supplies used in the modification,
15  replacement, repair, and maintenance of aircraft engines or
16  power plants, whether such engines or power plants are
17  installed or uninstalled upon any such aircraft. "Consumable
18  supplies" include, but are not limited to, adhesive, tape,
19  sandpaper, general purpose lubricants, cleaning solution,
20  latex gloves, and protective films.
21  Beginning January 1, 2010 and continuing through December
22  31, 2023, this exemption applies only to the use of qualifying
23  tangible personal property by persons who modify, refurbish,
24  complete, repair, replace, or maintain aircraft and who (i)
25  hold an Air Agency Certificate and are empowered to operate an
26  approved repair station by the Federal Aviation

 

 

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1  Administration, (ii) have a Class IV Rating, and (iii) conduct
2  operations in accordance with Part 145 of the Federal Aviation
3  Regulations. From January 1, 2024 through December 31, 2029,
4  this exemption applies only to the use of qualifying tangible
5  personal property by: (A) persons who modify, refurbish,
6  complete, repair, replace, or maintain aircraft and who (i)
7  hold an Air Agency Certificate and are empowered to operate an
8  approved repair station by the Federal Aviation
9  Administration, (ii) have a Class IV Rating, and (iii) conduct
10  operations in accordance with Part 145 of the Federal Aviation
11  Regulations; and (B) persons who engage in the modification,
12  replacement, repair, and maintenance of aircraft engines or
13  power plants without regard to whether or not those persons
14  meet the qualifications of item (A).
15  The exemption does not include aircraft operated by a
16  commercial air carrier providing scheduled passenger air
17  service pursuant to authority issued under Part 121 or Part
18  129 of the Federal Aviation Regulations. The changes made to
19  this paragraph (35) by Public Act 98-534 are declarative of
20  existing law. It is the intent of the General Assembly that the
21  exemption under this paragraph (35) applies continuously from
22  January 1, 2010 through December 31, 2024; however, no claim
23  for credit or refund is allowed for taxes paid as a result of
24  the disallowance of this exemption on or after January 1, 2015
25  and prior to February 5, 2020 (the effective date of Public Act
26  101-629).

 

 

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1  (36) Tangible personal property purchased by a
2  public-facilities corporation, as described in Section
3  11-65-10 of the Illinois Municipal Code, for purposes of
4  constructing or furnishing a municipal convention hall, but
5  only if the legal title to the municipal convention hall is
6  transferred to the municipality without any further
7  consideration by or on behalf of the municipality at the time
8  of the completion of the municipal convention hall or upon the
9  retirement or redemption of any bonds or other debt
10  instruments issued by the public-facilities corporation in
11  connection with the development of the municipal convention
12  hall. This exemption includes existing public-facilities
13  corporations as provided in Section 11-65-25 of the Illinois
14  Municipal Code. This paragraph is exempt from the provisions
15  of Section 3-90.
16  (37) Beginning January 1, 2017 and through December 31,
17  2026, menstrual pads, tampons, and menstrual cups.
18  (38) Merchandise that is subject to the Rental Purchase
19  Agreement Occupation and Use Tax. The purchaser must certify
20  that the item is purchased to be rented subject to a
21  rental-purchase agreement, as defined in the Rental-Purchase
22  Agreement Act, and provide proof of registration under the
23  Rental Purchase Agreement Occupation and Use Tax Act. This
24  paragraph is exempt from the provisions of Section 3-90.
25  (39) Tangible personal property purchased by a purchaser
26  who is exempt from the tax imposed by this Act by operation of

 

 

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1  federal law. This paragraph is exempt from the provisions of
2  Section 3-90.
3  (40) Qualified tangible personal property used in the
4  construction or operation of a data center that has been
5  granted a certificate of exemption by the Department of
6  Commerce and Economic Opportunity, whether that tangible
7  personal property is purchased by the owner, operator, or
8  tenant of the data center or by a contractor or subcontractor
9  of the owner, operator, or tenant. Data centers that would
10  have qualified for a certificate of exemption prior to January
11  1, 2020 had Public Act 101-31 been in effect may apply for and
12  obtain an exemption for subsequent purchases of computer
13  equipment or enabling software purchased or leased to upgrade,
14  supplement, or replace computer equipment or enabling software
15  purchased or leased in the original investment that would have
16  qualified.
17  The Department of Commerce and Economic Opportunity shall
18  grant a certificate of exemption under this item (40) to
19  qualified data centers as defined by Section 605-1025 of the
20  Department of Commerce and Economic Opportunity Law of the
21  Civil Administrative Code of Illinois.
22  For the purposes of this item (40):
23  "Data center" means a building or a series of
24  buildings rehabilitated or constructed to house working
25  servers in one physical location or multiple sites within
26  the State of Illinois.

 

 

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1  "Qualified tangible personal property" means:
2  electrical systems and equipment; climate control and
3  chilling equipment and systems; mechanical systems and
4  equipment; monitoring and secure systems; emergency
5  generators; hardware; computers; servers; data storage
6  devices; network connectivity equipment; racks; cabinets;
7  telecommunications cabling infrastructure; raised floor
8  systems; peripheral components or systems; software;
9  mechanical, electrical, or plumbing systems; battery
10  systems; cooling systems and towers; temperature control
11  systems; other cabling; and other data center
12  infrastructure equipment and systems necessary to operate
13  qualified tangible personal property, including fixtures;
14  and component parts of any of the foregoing, including
15  installation, maintenance, repair, refurbishment, and
16  replacement of qualified tangible personal property to
17  generate, transform, transmit, distribute, or manage
18  electricity necessary to operate qualified tangible
19  personal property; and all other tangible personal
20  property that is essential to the operations of a computer
21  data center. The term "qualified tangible personal
22  property" also includes building materials physically
23  incorporated into the qualifying data center. To document
24  the exemption allowed under this Section, the retailer
25  must obtain from the purchaser a copy of the certificate
26  of eligibility issued by the Department of Commerce and

 

 

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1  Economic Opportunity.
2  This item (40) is exempt from the provisions of Section
3  3-90.
4  (41) Beginning July 1, 2022, breast pumps, breast pump
5  collection and storage supplies, and breast pump kits. This
6  item (41) is exempt from the provisions of Section 3-90. As
7  used in this item (41):
8  "Breast pump" means an electrically controlled or
9  manually controlled pump device designed or marketed to be
10  used to express milk from a human breast during lactation,
11  including the pump device and any battery, AC adapter, or
12  other power supply unit that is used to power the pump
13  device and is packaged and sold with the pump device at the
14  time of sale.
15  "Breast pump collection and storage supplies" means
16  items of tangible personal property designed or marketed
17  to be used in conjunction with a breast pump to collect
18  milk expressed from a human breast and to store collected
19  milk until it is ready for consumption.
20  "Breast pump collection and storage supplies"
21  includes, but is not limited to: breast shields and breast
22  shield connectors; breast pump tubes and tubing adapters;
23  breast pump valves and membranes; backflow protectors and
24  backflow protector adaptors; bottles and bottle caps
25  specific to the operation of the breast pump; and breast
26  milk storage bags.

 

 

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1  "Breast pump collection and storage supplies" does not
2  include: (1) bottles and bottle caps not specific to the
3  operation of the breast pump; (2) breast pump travel bags
4  and other similar carrying accessories, including ice
5  packs, labels, and other similar products; (3) breast pump
6  cleaning supplies; (4) nursing bras, bra pads, breast
7  shells, and other similar products; and (5) creams,
8  ointments, and other similar products that relieve
9  breastfeeding-related symptoms or conditions of the
10  breasts or nipples, unless sold as part of a breast pump
11  kit that is pre-packaged by the breast pump manufacturer
12  or distributor.
13  "Breast pump kit" means a kit that: (1) contains no
14  more than a breast pump, breast pump collection and
15  storage supplies, a rechargeable battery for operating the
16  breast pump, a breastmilk cooler, bottle stands, ice
17  packs, and a breast pump carrying case; and (2) is
18  pre-packaged as a breast pump kit by the breast pump
19  manufacturer or distributor.
20  (42) Tangible personal property sold by or on behalf of
21  the State Treasurer pursuant to the Revised Uniform Unclaimed
22  Property Act. This item (42) is exempt from the provisions of
23  Section 3-90.
24  (43) Beginning on January 1, 2024, tangible personal
25  property purchased by an active duty member of the armed
26  forces of the United States who presents valid military

 

 

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1  identification and purchases the property using a form of
2  payment where the federal government is the payor. The member
3  of the armed forces must complete, at the point of sale, a form
4  prescribed by the Department of Revenue documenting that the
5  transaction is eligible for the exemption under this
6  paragraph. Retailers must keep the form as documentation of
7  the exemption in their records for a period of not less than 6
8  years. "Armed forces of the United States" means the United
9  States Army, Navy, Air Force, Space Force, Marine Corps, or
10  Coast Guard. This paragraph is exempt from the provisions of
11  Section 3-90.
12  (44) Beginning July 1, 2024, home-delivered meals provided
13  to Medicare or Medicaid recipients when payment is made by an
14  intermediary, such as a Medicare Administrative Contractor, a
15  Managed Care Organization, or a Medicare Advantage
16  Organization, pursuant to a government contract. This item
17  (44) is exempt from the provisions of Section 3-90.
18  (45) (44) Beginning on January 1, 2026, as further defined
19  in Section 3-10, food for human consumption that is to be
20  consumed off the premises where it is sold (other than
21  alcoholic beverages, food consisting of or infused with adult
22  use cannabis, soft drinks, candy, and food that has been
23  prepared for immediate consumption). This item (45) (44) is
24  exempt from the provisions of Section 3-90.
25  (46) (44) Use by the lessee of the following leased
26  tangible personal property:

 

 

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1  (1) software transferred subject to a license that
2  meets the following requirements:
3  (A) it is evidenced by a written agreement signed
4  by the licensor and the customer;
5  (i) an electronic agreement in which the
6  customer accepts the license by means of an
7  electronic signature that is verifiable and can be
8  authenticated and is attached to or made part of
9  the license will comply with this requirement;
10  (ii) a license agreement in which the customer
11  electronically accepts the terms by clicking "I
12  agree" does not comply with this requirement;
13  (B) it restricts the customer's duplication and
14  use of the software;
15  (C) it prohibits the customer from licensing,
16  sublicensing, or transferring the software to a third
17  party (except to a related party) without the
18  permission and continued control of the licensor;
19  (D) the licensor has a policy of providing another
20  copy at minimal or no charge if the customer loses or
21  damages the software, or of permitting the licensee to
22  make and keep an archival copy, and such policy is
23  either stated in the license agreement, supported by
24  the licensor's books and records, or supported by a
25  notarized statement made under penalties of perjury by
26  the licensor; and

 

 

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1  (E) the customer must destroy or return all copies
2  of the software to the licensor at the end of the
3  license period; this provision is deemed to be met, in
4  the case of a perpetual license, without being set
5  forth in the license agreement; and
6  (2) property that is subject to a tax on lease
7  receipts imposed by a home rule unit of local government
8  if the ordinance imposing that tax was adopted prior to
9  January 1, 2023.
10  (47) Materials furnished to a common interest community
11  association pursuant to a contract entered into with the
12  highway commissioner of a road district under subsection (k)
13  of Section 1-30 of the Common Interest Community Association
14  Act. This paragraph is exempt from the provisions of Section
15  3-90.
16  (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
17  Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
18  eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
19  Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
20  eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
21  103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
22  7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; revised
23  11-26-24.)
24  Section 10. The Service Use Tax Act is amended by changing
25  Section 3-5 as follows:

 

 

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1  (35 ILCS 110/3-5)
2  Sec. 3-5. Exemptions. Use of the following tangible
3  personal property is exempt from the tax imposed by this Act:
4  (1) Personal property purchased from a corporation,
5  society, association, foundation, institution, or
6  organization, other than a limited liability company, that is
7  organized and operated as a not-for-profit service enterprise
8  for the benefit of persons 65 years of age or older if the
9  personal property was not purchased by the enterprise for the
10  purpose of resale by the enterprise.
11  (2) Personal property purchased by a non-profit Illinois
12  county fair association for use in conducting, operating, or
13  promoting the county fair.
14  (3) Personal property purchased by a not-for-profit arts
15  or cultural organization that establishes, by proof required
16  by the Department by rule, that it has received an exemption
17  under Section 501(c)(3) of the Internal Revenue Code and that
18  is organized and operated primarily for the presentation or
19  support of arts or cultural programming, activities, or
20  services. These organizations include, but are not limited to,
21  music and dramatic arts organizations such as symphony
22  orchestras and theatrical groups, arts and cultural service
23  organizations, local arts councils, visual arts organizations,
24  and media arts organizations. On and after July 1, 2001 (the
25  effective date of Public Act 92-35), however, an entity

 

 

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1  otherwise eligible for this exemption shall not make tax-free
2  purchases unless it has an active identification number issued
3  by the Department.
4  (4) Legal tender, currency, medallions, or gold or silver
5  coinage issued by the State of Illinois, the government of the
6  United States of America, or the government of any foreign
7  country, and bullion.
8  (5) Until July 1, 2003 and beginning again on September 1,
9  2004 through August 30, 2014, graphic arts machinery and
10  equipment, including repair and replacement parts, both new
11  and used, and including that manufactured on special order or
12  purchased for lease, certified by the purchaser to be used
13  primarily for graphic arts production. Equipment includes
14  chemicals or chemicals acting as catalysts but only if the
15  chemicals or chemicals acting as catalysts effect a direct and
16  immediate change upon a graphic arts product. Beginning on
17  July 1, 2017, graphic arts machinery and equipment is included
18  in the manufacturing and assembling machinery and equipment
19  exemption under Section 2 of this Act.
20  (6) Personal property purchased from a teacher-sponsored
21  student organization affiliated with an elementary or
22  secondary school located in Illinois.
23  (7) Farm machinery and equipment, both new and used,
24  including that manufactured on special order, certified by the
25  purchaser to be used primarily for production agriculture or
26  State or federal agricultural programs, including individual

 

 

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1  replacement parts for the machinery and equipment, including
2  machinery and equipment purchased for lease, and including
3  implements of husbandry defined in Section 1-130 of the
4  Illinois Vehicle Code, farm machinery and agricultural
5  chemical and fertilizer spreaders, and nurse wagons required
6  to be registered under Section 3-809 of the Illinois Vehicle
7  Code, but excluding other motor vehicles required to be
8  registered under the Illinois Vehicle Code. Horticultural
9  polyhouses or hoop houses used for propagating, growing, or
10  overwintering plants shall be considered farm machinery and
11  equipment under this item (7). Agricultural chemical tender
12  tanks and dry boxes shall include units sold separately from a
13  motor vehicle required to be licensed and units sold mounted
14  on a motor vehicle required to be licensed if the selling price
15  of the tender is separately stated.
16  Farm machinery and equipment shall include precision
17  farming equipment that is installed or purchased to be
18  installed on farm machinery and equipment, including, but not
19  limited to, tractors, harvesters, sprayers, planters, seeders,
20  or spreaders. Precision farming equipment includes, but is not
21  limited to, soil testing sensors, computers, monitors,
22  software, global positioning and mapping systems, and other
23  such equipment.
24  Farm machinery and equipment also includes computers,
25  sensors, software, and related equipment used primarily in the
26  computer-assisted operation of production agriculture

 

 

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1  facilities, equipment, and activities such as, but not limited
2  to, the collection, monitoring, and correlation of animal and
3  crop data for the purpose of formulating animal diets and
4  agricultural chemicals.
5  Beginning on January 1, 2024, farm machinery and equipment
6  also includes electrical power generation equipment used
7  primarily for production agriculture.
8  This item (7) is exempt from the provisions of Section
9  3-75.
10  (8) Until June 30, 2013, fuel and petroleum products sold
11  to or used by an air common carrier, certified by the carrier
12  to be used for consumption, shipment, or storage in the
13  conduct of its business as an air common carrier, for a flight
14  destined for or returning from a location or locations outside
15  the United States without regard to previous or subsequent
16  domestic stopovers.
17  Beginning July 1, 2013, fuel and petroleum products sold
18  to or used by an air carrier, certified by the carrier to be
19  used for consumption, shipment, or storage in the conduct of
20  its business as an air common carrier, for a flight that (i) is
21  engaged in foreign trade or is engaged in trade between the
22  United States and any of its possessions and (ii) transports
23  at least one individual or package for hire from the city of
24  origination to the city of final destination on the same
25  aircraft, without regard to a change in the flight number of
26  that aircraft.

 

 

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1  (9) Proceeds of mandatory service charges separately
2  stated on customers' bills for the purchase and consumption of
3  food and beverages acquired as an incident to the purchase of a
4  service from a serviceman, to the extent that the proceeds of
5  the service charge are in fact turned over as tips or as a
6  substitute for tips to the employees who participate directly
7  in preparing, serving, hosting or cleaning up the food or
8  beverage function with respect to which the service charge is
9  imposed.
10  (10) Until July 1, 2003, oil field exploration, drilling,
11  and production equipment, including (i) rigs and parts of
12  rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
13  pipe and tubular goods, including casing and drill strings,
14  (iii) pumps and pump-jack units, (iv) storage tanks and flow
15  lines, (v) any individual replacement part for oil field
16  exploration, drilling, and production equipment, and (vi)
17  machinery and equipment purchased for lease; but excluding
18  motor vehicles required to be registered under the Illinois
19  Vehicle Code.
20  (11) Proceeds from the sale of photoprocessing machinery
21  and equipment, including repair and replacement parts, both
22  new and used, including that manufactured on special order,
23  certified by the purchaser to be used primarily for
24  photoprocessing, and including photoprocessing machinery and
25  equipment purchased for lease.
26  (12) Until July 1, 2028, coal and aggregate exploration,

 

 

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1  mining, off-highway hauling, processing, maintenance, and
2  reclamation equipment, including replacement parts and
3  equipment, and including equipment purchased for lease, but
4  excluding motor vehicles required to be registered under the
5  Illinois Vehicle Code. The changes made to this Section by
6  Public Act 97-767 apply on and after July 1, 2003, but no claim
7  for credit or refund is allowed on or after August 16, 2013
8  (the effective date of Public Act 98-456) for such taxes paid
9  during the period beginning July 1, 2003 and ending on August
10  16, 2013 (the effective date of Public Act 98-456).
11  (13) Semen used for artificial insemination of livestock
12  for direct agricultural production.
13  (14) Horses, or interests in horses, registered with and
14  meeting the requirements of any of the Arabian Horse Club
15  Registry of America, Appaloosa Horse Club, American Quarter
16  Horse Association, United States Trotting Association, or
17  Jockey Club, as appropriate, used for purposes of breeding or
18  racing for prizes. This item (14) is exempt from the
19  provisions of Section 3-75, and the exemption provided for
20  under this item (14) applies for all periods beginning May 30,
21  1995, but no claim for credit or refund is allowed on or after
22  January 1, 2008 (the effective date of Public Act 95-88) for
23  such taxes paid during the period beginning May 30, 2000 and
24  ending on January 1, 2008 (the effective date of Public Act
25  95-88).
26  (15) Computers and communications equipment utilized for

 

 

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1  any hospital purpose and equipment used in the diagnosis,
2  analysis, or treatment of hospital patients purchased by a
3  lessor who leases the equipment, under a lease of one year or
4  longer executed or in effect at the time the lessor would
5  otherwise be subject to the tax imposed by this Act, to a
6  hospital that has been issued an active tax exemption
7  identification number by the Department under Section 1g of
8  the Retailers' Occupation Tax Act. If the equipment is leased
9  in a manner that does not qualify for this exemption or is used
10  in any other non-exempt manner, the lessor shall be liable for
11  the tax imposed under this Act or the Use Tax Act, as the case
12  may be, based on the fair market value of the property at the
13  time the non-qualifying use occurs. No lessor shall collect or
14  attempt to collect an amount (however designated) that
15  purports to reimburse that lessor for the tax imposed by this
16  Act or the Use Tax Act, as the case may be, if the tax has not
17  been paid by the lessor. If a lessor improperly collects any
18  such amount from the lessee, the lessee shall have a legal
19  right to claim a refund of that amount from the lessor. If,
20  however, that amount is not refunded to the lessee for any
21  reason, the lessor is liable to pay that amount to the
22  Department.
23  (16) Personal property purchased by a lessor who leases
24  the property, under a lease of one year or longer executed or
25  in effect at the time the lessor would otherwise be subject to
26  the tax imposed by this Act, to a governmental body that has

 

 

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1  been issued an active tax exemption identification number by
2  the Department under Section 1g of the Retailers' Occupation
3  Tax Act. If the property is leased in a manner that does not
4  qualify for this exemption or is used in any other non-exempt
5  manner, the lessor shall be liable for the tax imposed under
6  this Act or the Use Tax Act, as the case may be, based on the
7  fair market value of the property at the time the
8  non-qualifying use occurs. No lessor shall collect or attempt
9  to collect an amount (however designated) that purports to
10  reimburse that lessor for the tax imposed by this Act or the
11  Use Tax Act, as the case may be, if the tax has not been paid
12  by the lessor. If a lessor improperly collects any such amount
13  from the lessee, the lessee shall have a legal right to claim a
14  refund of that amount from the lessor. If, however, that
15  amount is not refunded to the lessee for any reason, the lessor
16  is liable to pay that amount to the Department.
17  (17) Beginning with taxable years ending on or after
18  December 31, 1995 and ending with taxable years ending on or
19  before December 31, 2004, personal property that is donated
20  for disaster relief to be used in a State or federally declared
21  disaster area in Illinois or bordering Illinois by a
22  manufacturer or retailer that is registered in this State to a
23  corporation, society, association, foundation, or institution
24  that has been issued a sales tax exemption identification
25  number by the Department that assists victims of the disaster
26  who reside within the declared disaster area.

 

 

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1  (18) Beginning with taxable years ending on or after
2  December 31, 1995 and ending with taxable years ending on or
3  before December 31, 2004, personal property that is used in
4  the performance of infrastructure repairs in this State,
5  including, but not limited to, municipal roads and streets,
6  access roads, bridges, sidewalks, waste disposal systems,
7  water and sewer line extensions, water distribution and
8  purification facilities, storm water drainage and retention
9  facilities, and sewage treatment facilities, resulting from a
10  State or federally declared disaster in Illinois or bordering
11  Illinois when such repairs are initiated on facilities located
12  in the declared disaster area within 6 months after the
13  disaster.
14  (19) Beginning July 1, 1999, game or game birds purchased
15  at a "game breeding and hunting preserve area" as that term is
16  used in the Wildlife Code. This paragraph is exempt from the
17  provisions of Section 3-75.
18  (20) A motor vehicle, as that term is defined in Section
19  1-146 of the Illinois Vehicle Code, that is donated to a
20  corporation, limited liability company, society, association,
21  foundation, or institution that is determined by the
22  Department to be organized and operated exclusively for
23  educational purposes. For purposes of this exemption, "a
24  corporation, limited liability company, society, association,
25  foundation, or institution organized and operated exclusively
26  for educational purposes" means all tax-supported public

 

 

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1  schools, private schools that offer systematic instruction in
2  useful branches of learning by methods common to public
3  schools and that compare favorably in their scope and
4  intensity with the course of study presented in tax-supported
5  schools, and vocational or technical schools or institutes
6  organized and operated exclusively to provide a course of
7  study of not less than 6 weeks duration and designed to prepare
8  individuals to follow a trade or to pursue a manual,
9  technical, mechanical, industrial, business, or commercial
10  occupation.
11  (21) Beginning January 1, 2000, personal property,
12  including food, purchased through fundraising events for the
13  benefit of a public or private elementary or secondary school,
14  a group of those schools, or one or more school districts if
15  the events are sponsored by an entity recognized by the school
16  district that consists primarily of volunteers and includes
17  parents and teachers of the school children. This paragraph
18  does not apply to fundraising events (i) for the benefit of
19  private home instruction or (ii) for which the fundraising
20  entity purchases the personal property sold at the events from
21  another individual or entity that sold the property for the
22  purpose of resale by the fundraising entity and that profits
23  from the sale to the fundraising entity. This paragraph is
24  exempt from the provisions of Section 3-75.
25  (22) Beginning January 1, 2000 and through December 31,
26  2001, new or used automatic vending machines that prepare and

 

 

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1  serve hot food and beverages, including coffee, soup, and
2  other items, and replacement parts for these machines.
3  Beginning January 1, 2002 and through June 30, 2003, machines
4  and parts for machines used in commercial, coin-operated
5  amusement and vending business if a use or occupation tax is
6  paid on the gross receipts derived from the use of the
7  commercial, coin-operated amusement and vending machines. This
8  paragraph is exempt from the provisions of Section 3-75.
9  (23) Beginning August 23, 2001 and through June 30, 2016,
10  food for human consumption that is to be consumed off the
11  premises where it is sold (other than alcoholic beverages,
12  soft drinks, and food that has been prepared for immediate
13  consumption) and prescription and nonprescription medicines,
14  drugs, medical appliances, and insulin, urine testing
15  materials, syringes, and needles used by diabetics, for human
16  use, when purchased for use by a person receiving medical
17  assistance under Article V of the Illinois Public Aid Code who
18  resides in a licensed long-term care facility, as defined in
19  the Nursing Home Care Act, or in a licensed facility as defined
20  in the ID/DD Community Care Act, the MC/DD Act, or the
21  Specialized Mental Health Rehabilitation Act of 2013.
22  (24) Beginning on August 2, 2001 (the effective date of
23  Public Act 92-227), computers and communications equipment
24  utilized for any hospital purpose and equipment used in the
25  diagnosis, analysis, or treatment of hospital patients
26  purchased by a lessor who leases the equipment, under a lease

 

 

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1  of one year or longer executed or in effect at the time the
2  lessor would otherwise be subject to the tax imposed by this
3  Act, to a hospital that has been issued an active tax exemption
4  identification number by the Department under Section 1g of
5  the Retailers' Occupation Tax Act. If the equipment is leased
6  in a manner that does not qualify for this exemption or is used
7  in any other nonexempt manner, the lessor shall be liable for
8  the tax imposed under this Act or the Use Tax Act, as the case
9  may be, based on the fair market value of the property at the
10  time the nonqualifying use occurs. No lessor shall collect or
11  attempt to collect an amount (however designated) that
12  purports to reimburse that lessor for the tax imposed by this
13  Act or the Use Tax Act, as the case may be, if the tax has not
14  been paid by the lessor. If a lessor improperly collects any
15  such amount from the lessee, the lessee shall have a legal
16  right to claim a refund of that amount from the lessor. If,
17  however, that amount is not refunded to the lessee for any
18  reason, the lessor is liable to pay that amount to the
19  Department. This paragraph is exempt from the provisions of
20  Section 3-75.
21  (25) Beginning on August 2, 2001 (the effective date of
22  Public Act 92-227), personal property purchased by a lessor
23  who leases the property, under a lease of one year or longer
24  executed or in effect at the time the lessor would otherwise be
25  subject to the tax imposed by this Act, to a governmental body
26  that has been issued an active tax exemption identification

 

 

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1  number by the Department under Section 1g of the Retailers'
2  Occupation Tax Act. If the property is leased in a manner that
3  does not qualify for this exemption or is used in any other
4  nonexempt manner, the lessor shall be liable for the tax
5  imposed under this Act or the Use Tax Act, as the case may be,
6  based on the fair market value of the property at the time the
7  nonqualifying use occurs. No lessor shall collect or attempt
8  to collect an amount (however designated) that purports to
9  reimburse that lessor for the tax imposed by this Act or the
10  Use Tax Act, as the case may be, if the tax has not been paid
11  by the lessor. If a lessor improperly collects any such amount
12  from the lessee, the lessee shall have a legal right to claim a
13  refund of that amount from the lessor. If, however, that
14  amount is not refunded to the lessee for any reason, the lessor
15  is liable to pay that amount to the Department. This paragraph
16  is exempt from the provisions of Section 3-75.
17  (26) Beginning January 1, 2008, tangible personal property
18  used in the construction or maintenance of a community water
19  supply, as defined under Section 3.145 of the Environmental
20  Protection Act, that is operated by a not-for-profit
21  corporation that holds a valid water supply permit issued
22  under Title IV of the Environmental Protection Act. This
23  paragraph is exempt from the provisions of Section 3-75.
24  (27) Beginning January 1, 2010 and continuing through
25  December 31, 2029, materials, parts, equipment, components,
26  and furnishings incorporated into or upon an aircraft as part

 

 

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1  of the modification, refurbishment, completion, replacement,
2  repair, or maintenance of the aircraft. This exemption
3  includes consumable supplies used in the modification,
4  refurbishment, completion, replacement, repair, and
5  maintenance of aircraft. However, until January 1, 2024, this
6  exemption excludes any materials, parts, equipment,
7  components, and consumable supplies used in the modification,
8  replacement, repair, and maintenance of aircraft engines or
9  power plants, whether such engines or power plants are
10  installed or uninstalled upon any such aircraft. "Consumable
11  supplies" include, but are not limited to, adhesive, tape,
12  sandpaper, general purpose lubricants, cleaning solution,
13  latex gloves, and protective films.
14  Beginning January 1, 2010 and continuing through December
15  31, 2023, this exemption applies only to the use of qualifying
16  tangible personal property transferred incident to the
17  modification, refurbishment, completion, replacement, repair,
18  or maintenance of aircraft by persons who (i) hold an Air
19  Agency Certificate and are empowered to operate an approved
20  repair station by the Federal Aviation Administration, (ii)
21  have a Class IV Rating, and (iii) conduct operations in
22  accordance with Part 145 of the Federal Aviation Regulations.
23  From January 1, 2024 through December 31, 2029, this exemption
24  applies only to the use of qualifying tangible personal
25  property transferred incident to: (A) the modification,
26  refurbishment, completion, repair, replacement, or maintenance

 

 

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1  of an aircraft by persons who (i) hold an Air Agency
2  Certificate and are empowered to operate an approved repair
3  station by the Federal Aviation Administration, (ii) have a
4  Class IV Rating, and (iii) conduct operations in accordance
5  with Part 145 of the Federal Aviation Regulations; and (B) the
6  modification, replacement, repair, and maintenance of aircraft
7  engines or power plants without regard to whether or not those
8  persons meet the qualifications of item (A).
9  The exemption does not include aircraft operated by a
10  commercial air carrier providing scheduled passenger air
11  service pursuant to authority issued under Part 121 or Part
12  129 of the Federal Aviation Regulations. The changes made to
13  this paragraph (27) by Public Act 98-534 are declarative of
14  existing law. It is the intent of the General Assembly that the
15  exemption under this paragraph (27) applies continuously from
16  January 1, 2010 through December 31, 2024; however, no claim
17  for credit or refund is allowed for taxes paid as a result of
18  the disallowance of this exemption on or after January 1, 2015
19  and prior to February 5, 2020 (the effective date of Public Act
20  101-629).
21  (28) Tangible personal property purchased by a
22  public-facilities corporation, as described in Section
23  11-65-10 of the Illinois Municipal Code, for purposes of
24  constructing or furnishing a municipal convention hall, but
25  only if the legal title to the municipal convention hall is
26  transferred to the municipality without any further

 

 

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1  consideration by or on behalf of the municipality at the time
2  of the completion of the municipal convention hall or upon the
3  retirement or redemption of any bonds or other debt
4  instruments issued by the public-facilities corporation in
5  connection with the development of the municipal convention
6  hall. This exemption includes existing public-facilities
7  corporations as provided in Section 11-65-25 of the Illinois
8  Municipal Code. This paragraph is exempt from the provisions
9  of Section 3-75.
10  (29) Beginning January 1, 2017 and through December 31,
11  2026, menstrual pads, tampons, and menstrual cups.
12  (30) Tangible personal property transferred to a purchaser
13  who is exempt from the tax imposed by this Act by operation of
14  federal law. This paragraph is exempt from the provisions of
15  Section 3-75.
16  (31) Qualified tangible personal property used in the
17  construction or operation of a data center that has been
18  granted a certificate of exemption by the Department of
19  Commerce and Economic Opportunity, whether that tangible
20  personal property is purchased by the owner, operator, or
21  tenant of the data center or by a contractor or subcontractor
22  of the owner, operator, or tenant. Data centers that would
23  have qualified for a certificate of exemption prior to January
24  1, 2020 had Public Act 101-31 been in effect, may apply for and
25  obtain an exemption for subsequent purchases of computer
26  equipment or enabling software purchased or leased to upgrade,

 

 

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1  supplement, or replace computer equipment or enabling software
2  purchased or leased in the original investment that would have
3  qualified.
4  The Department of Commerce and Economic Opportunity shall
5  grant a certificate of exemption under this item (31) to
6  qualified data centers as defined by Section 605-1025 of the
7  Department of Commerce and Economic Opportunity Law of the
8  Civil Administrative Code of Illinois.
9  For the purposes of this item (31):
10  "Data center" means a building or a series of
11  buildings rehabilitated or constructed to house working
12  servers in one physical location or multiple sites within
13  the State of Illinois.
14  "Qualified tangible personal property" means:
15  electrical systems and equipment; climate control and
16  chilling equipment and systems; mechanical systems and
17  equipment; monitoring and secure systems; emergency
18  generators; hardware; computers; servers; data storage
19  devices; network connectivity equipment; racks; cabinets;
20  telecommunications cabling infrastructure; raised floor
21  systems; peripheral components or systems; software;
22  mechanical, electrical, or plumbing systems; battery
23  systems; cooling systems and towers; temperature control
24  systems; other cabling; and other data center
25  infrastructure equipment and systems necessary to operate
26  qualified tangible personal property, including fixtures;

 

 

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1  and component parts of any of the foregoing, including
2  installation, maintenance, repair, refurbishment, and
3  replacement of qualified tangible personal property to
4  generate, transform, transmit, distribute, or manage
5  electricity necessary to operate qualified tangible
6  personal property; and all other tangible personal
7  property that is essential to the operations of a computer
8  data center. The term "qualified tangible personal
9  property" also includes building materials physically
10  incorporated into the qualifying data center. To document
11  the exemption allowed under this Section, the retailer
12  must obtain from the purchaser a copy of the certificate
13  of eligibility issued by the Department of Commerce and
14  Economic Opportunity.
15  This item (31) is exempt from the provisions of Section
16  3-75.
17  (32) Beginning July 1, 2022, breast pumps, breast pump
18  collection and storage supplies, and breast pump kits. This
19  item (32) is exempt from the provisions of Section 3-75. As
20  used in this item (32):
21  "Breast pump" means an electrically controlled or
22  manually controlled pump device designed or marketed to be
23  used to express milk from a human breast during lactation,
24  including the pump device and any battery, AC adapter, or
25  other power supply unit that is used to power the pump
26  device and is packaged and sold with the pump device at the

 

 

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1  time of sale.
2  "Breast pump collection and storage supplies" means
3  items of tangible personal property designed or marketed
4  to be used in conjunction with a breast pump to collect
5  milk expressed from a human breast and to store collected
6  milk until it is ready for consumption.
7  "Breast pump collection and storage supplies"
8  includes, but is not limited to: breast shields and breast
9  shield connectors; breast pump tubes and tubing adapters;
10  breast pump valves and membranes; backflow protectors and
11  backflow protector adaptors; bottles and bottle caps
12  specific to the operation of the breast pump; and breast
13  milk storage bags.
14  "Breast pump collection and storage supplies" does not
15  include: (1) bottles and bottle caps not specific to the
16  operation of the breast pump; (2) breast pump travel bags
17  and other similar carrying accessories, including ice
18  packs, labels, and other similar products; (3) breast pump
19  cleaning supplies; (4) nursing bras, bra pads, breast
20  shells, and other similar products; and (5) creams,
21  ointments, and other similar products that relieve
22  breastfeeding-related symptoms or conditions of the
23  breasts or nipples, unless sold as part of a breast pump
24  kit that is pre-packaged by the breast pump manufacturer
25  or distributor.
26  "Breast pump kit" means a kit that: (1) contains no

 

 

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1  more than a breast pump, breast pump collection and
2  storage supplies, a rechargeable battery for operating the
3  breast pump, a breastmilk cooler, bottle stands, ice
4  packs, and a breast pump carrying case; and (2) is
5  pre-packaged as a breast pump kit by the breast pump
6  manufacturer or distributor.
7  (33) Tangible personal property sold by or on behalf of
8  the State Treasurer pursuant to the Revised Uniform Unclaimed
9  Property Act. This item (33) is exempt from the provisions of
10  Section 3-75.
11  (34) Beginning on January 1, 2024, tangible personal
12  property purchased by an active duty member of the armed
13  forces of the United States who presents valid military
14  identification and purchases the property using a form of
15  payment where the federal government is the payor. The member
16  of the armed forces must complete, at the point of sale, a form
17  prescribed by the Department of Revenue documenting that the
18  transaction is eligible for the exemption under this
19  paragraph. Retailers must keep the form as documentation of
20  the exemption in their records for a period of not less than 6
21  years. "Armed forces of the United States" means the United
22  States Army, Navy, Air Force, Space Force, Marine Corps, or
23  Coast Guard. This paragraph is exempt from the provisions of
24  Section 3-75.
25  (35) Beginning July 1, 2024, home-delivered meals provided
26  to Medicare or Medicaid recipients when payment is made by an

 

 

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1  intermediary, such as a Medicare Administrative Contractor, a
2  Managed Care Organization, or a Medicare Advantage
3  Organization, pursuant to a government contract. This
4  paragraph (35) is exempt from the provisions of Section 3-75.
5  (36) (35) Beginning on January 1, 2026, as further defined
6  in Section 3-10, food prepared for immediate consumption and
7  transferred incident to a sale of service subject to this Act
8  or the Service Occupation Tax Act by an entity licensed under
9  the Hospital Licensing Act, the Nursing Home Care Act, the
10  Assisted Living and Shared Housing Act, the ID/DD Community
11  Care Act, the MC/DD Act, the Specialized Mental Health
12  Rehabilitation Act of 2013, or the Child Care Act of 1969, or
13  by an entity that holds a permit issued pursuant to the Life
14  Care Facilities Act. This item (36) (35) is exempt from the
15  provisions of Section 3-75.
16  (37) (36) Beginning on January 1, 2026, as further defined
17  in Section 3-10, food for human consumption that is to be
18  consumed off the premises where it is sold (other than
19  alcoholic beverages, food consisting of or infused with adult
20  use cannabis, soft drinks, candy, and food that has been
21  prepared for immediate consumption). This item (37) (36) is
22  exempt from the provisions of Section 3-75.
23  (38) (35) Use by a lessee of the following leased tangible
24  personal property:
25  (1) software transferred subject to a license that
26  meets the following requirements:

 

 

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1  (A) it is evidenced by a written agreement signed
2  by the licensor and the customer;
3  (i) an electronic agreement in which the
4  customer accepts the license by means of an
5  electronic signature that is verifiable and can be
6  authenticated and is attached to or made part of
7  the license will comply with this requirement;
8  (ii) a license agreement in which the customer
9  electronically accepts the terms by clicking "I
10  agree" does not comply with this requirement;
11  (B) it restricts the customer's duplication and
12  use of the software;
13  (C) it prohibits the customer from licensing,
14  sublicensing, or transferring the software to a third
15  party (except to a related party) without the
16  permission and continued control of the licensor;
17  (D) the licensor has a policy of providing another
18  copy at minimal or no charge if the customer loses or
19  damages the software, or of permitting the licensee to
20  make and keep an archival copy, and such policy is
21  either stated in the license agreement, supported by
22  the licensor's books and records, or supported by a
23  notarized statement made under penalties of perjury by
24  the licensor; and
25  (E) the customer must destroy or return all copies
26  of the software to the licensor at the end of the

 

 

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1  license period; this provision is deemed to be met, in
2  the case of a perpetual license, without being set
3  forth in the license agreement; and
4  (2) property that is subject to a tax on lease
5  receipts imposed by a home rule unit of local government
6  if the ordinance imposing that tax was adopted prior to
7  January 1, 2023.
8  (39) Materials furnished to a common interest community
9  association pursuant to a contract entered into with the
10  highway commissioner of a road district under subsection (k)
11  of Section 1-30 of the Common Interest Community Association
12  Act. This paragraph is exempt from the provisions of Section
13  3-75.
14  (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
15  Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
16  75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
17  Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
18  eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
19  103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
20  7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995,
21  eff. 8-9-24; revised 11-26-24.)
22  Section 15. The Service Occupation Tax Act is amended by
23  changing Section 3-5 as follows:
24  (35 ILCS 115/3-5)

 

 

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1  Sec. 3-5. Exemptions. The following tangible personal
2  property is exempt from the tax imposed by this Act:
3  (1) Personal property sold by a corporation, society,
4  association, foundation, institution, or organization, other
5  than a limited liability company, that is organized and
6  operated as a not-for-profit service enterprise for the
7  benefit of persons 65 years of age or older if the personal
8  property was not purchased by the enterprise for the purpose
9  of resale by the enterprise.
10  (2) Personal property purchased by a not-for-profit
11  Illinois county fair association for use in conducting,
12  operating, or promoting the county fair.
13  (3) Personal property purchased by any not-for-profit arts
14  or cultural organization that establishes, by proof required
15  by the Department by rule, that it has received an exemption
16  under Section 501(c)(3) of the Internal Revenue Code and that
17  is organized and operated primarily for the presentation or
18  support of arts or cultural programming, activities, or
19  services. These organizations include, but are not limited to,
20  music and dramatic arts organizations such as symphony
21  orchestras and theatrical groups, arts and cultural service
22  organizations, local arts councils, visual arts organizations,
23  and media arts organizations. On and after July 1, 2001 (the
24  effective date of Public Act 92-35), however, an entity
25  otherwise eligible for this exemption shall not make tax-free
26  purchases unless it has an active identification number issued

 

 

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1  by the Department.
2  (4) Legal tender, currency, medallions, or gold or silver
3  coinage issued by the State of Illinois, the government of the
4  United States of America, or the government of any foreign
5  country, and bullion.
6  (5) Until July 1, 2003 and beginning again on September 1,
7  2004 through August 30, 2014, graphic arts machinery and
8  equipment, including repair and replacement parts, both new
9  and used, and including that manufactured on special order or
10  purchased for lease, certified by the purchaser to be used
11  primarily for graphic arts production. Equipment includes
12  chemicals or chemicals acting as catalysts but only if the
13  chemicals or chemicals acting as catalysts effect a direct and
14  immediate change upon a graphic arts product. Beginning on
15  July 1, 2017, graphic arts machinery and equipment is included
16  in the manufacturing and assembling machinery and equipment
17  exemption under Section 2 of this Act.
18  (6) Personal property sold by a teacher-sponsored student
19  organization affiliated with an elementary or secondary school
20  located in Illinois.
21  (7) Farm machinery and equipment, both new and used,
22  including that manufactured on special order, certified by the
23  purchaser to be used primarily for production agriculture or
24  State or federal agricultural programs, including individual
25  replacement parts for the machinery and equipment, including
26  machinery and equipment purchased for lease, and including

 

 

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1  implements of husbandry defined in Section 1-130 of the
2  Illinois Vehicle Code, farm machinery and agricultural
3  chemical and fertilizer spreaders, and nurse wagons required
4  to be registered under Section 3-809 of the Illinois Vehicle
5  Code, but excluding other motor vehicles required to be
6  registered under the Illinois Vehicle Code. Horticultural
7  polyhouses or hoop houses used for propagating, growing, or
8  overwintering plants shall be considered farm machinery and
9  equipment under this item (7). Agricultural chemical tender
10  tanks and dry boxes shall include units sold separately from a
11  motor vehicle required to be licensed and units sold mounted
12  on a motor vehicle required to be licensed if the selling price
13  of the tender is separately stated.
14  Farm machinery and equipment shall include precision
15  farming equipment that is installed or purchased to be
16  installed on farm machinery and equipment, including, but not
17  limited to, tractors, harvesters, sprayers, planters, seeders,
18  or spreaders. Precision farming equipment includes, but is not
19  limited to, soil testing sensors, computers, monitors,
20  software, global positioning and mapping systems, and other
21  such equipment.
22  Farm machinery and equipment also includes computers,
23  sensors, software, and related equipment used primarily in the
24  computer-assisted operation of production agriculture
25  facilities, equipment, and activities such as, but not limited
26  to, the collection, monitoring, and correlation of animal and

 

 

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1  crop data for the purpose of formulating animal diets and
2  agricultural chemicals.
3  Beginning on January 1, 2024, farm machinery and equipment
4  also includes electrical power generation equipment used
5  primarily for production agriculture.
6  This item (7) is exempt from the provisions of Section
7  3-55.
8  (8) Until June 30, 2013, fuel and petroleum products sold
9  to or used by an air common carrier, certified by the carrier
10  to be used for consumption, shipment, or storage in the
11  conduct of its business as an air common carrier, for a flight
12  destined for or returning from a location or locations outside
13  the United States without regard to previous or subsequent
14  domestic stopovers.
15  Beginning July 1, 2013, fuel and petroleum products sold
16  to or used by an air carrier, certified by the carrier to be
17  used for consumption, shipment, or storage in the conduct of
18  its business as an air common carrier, for a flight that (i) is
19  engaged in foreign trade or is engaged in trade between the
20  United States and any of its possessions and (ii) transports
21  at least one individual or package for hire from the city of
22  origination to the city of final destination on the same
23  aircraft, without regard to a change in the flight number of
24  that aircraft.
25  (9) Proceeds of mandatory service charges separately
26  stated on customers' bills for the purchase and consumption of

 

 

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1  food and beverages, to the extent that the proceeds of the
2  service charge are in fact turned over as tips or as a
3  substitute for tips to the employees who participate directly
4  in preparing, serving, hosting or cleaning up the food or
5  beverage function with respect to which the service charge is
6  imposed.
7  (10) Until July 1, 2003, oil field exploration, drilling,
8  and production equipment, including (i) rigs and parts of
9  rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
10  pipe and tubular goods, including casing and drill strings,
11  (iii) pumps and pump-jack units, (iv) storage tanks and flow
12  lines, (v) any individual replacement part for oil field
13  exploration, drilling, and production equipment, and (vi)
14  machinery and equipment purchased for lease; but excluding
15  motor vehicles required to be registered under the Illinois
16  Vehicle Code.
17  (11) Photoprocessing machinery and equipment, including
18  repair and replacement parts, both new and used, including
19  that manufactured on special order, certified by the purchaser
20  to be used primarily for photoprocessing, and including
21  photoprocessing machinery and equipment purchased for lease.
22  (12) Until July 1, 2028, coal and aggregate exploration,
23  mining, off-highway hauling, processing, maintenance, and
24  reclamation equipment, including replacement parts and
25  equipment, and including equipment purchased for lease, but
26  excluding motor vehicles required to be registered under the

 

 

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1  Illinois Vehicle Code. The changes made to this Section by
2  Public Act 97-767 apply on and after July 1, 2003, but no claim
3  for credit or refund is allowed on or after August 16, 2013
4  (the effective date of Public Act 98-456) for such taxes paid
5  during the period beginning July 1, 2003 and ending on August
6  16, 2013 (the effective date of Public Act 98-456).
7  (13) Beginning January 1, 1992 and through June 30, 2016,
8  food for human consumption that is to be consumed off the
9  premises where it is sold (other than alcoholic beverages,
10  soft drinks and food that has been prepared for immediate
11  consumption) and prescription and non-prescription medicines,
12  drugs, medical appliances, and insulin, urine testing
13  materials, syringes, and needles used by diabetics, for human
14  use, when purchased for use by a person receiving medical
15  assistance under Article V of the Illinois Public Aid Code who
16  resides in a licensed long-term care facility, as defined in
17  the Nursing Home Care Act, or in a licensed facility as defined
18  in the ID/DD Community Care Act, the MC/DD Act, or the
19  Specialized Mental Health Rehabilitation Act of 2013.
20  (14) Semen used for artificial insemination of livestock
21  for direct agricultural production.
22  (15) Horses, or interests in horses, registered with and
23  meeting the requirements of any of the Arabian Horse Club
24  Registry of America, Appaloosa Horse Club, American Quarter
25  Horse Association, United States Trotting Association, or
26  Jockey Club, as appropriate, used for purposes of breeding or

 

 

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1  racing for prizes. This item (15) is exempt from the
2  provisions of Section 3-55, and the exemption provided for
3  under this item (15) applies for all periods beginning May 30,
4  1995, but no claim for credit or refund is allowed on or after
5  January 1, 2008 (the effective date of Public Act 95-88) for
6  such taxes paid during the period beginning May 30, 2000 and
7  ending on January 1, 2008 (the effective date of Public Act
8  95-88).
9  (16) Computers and communications equipment utilized for
10  any hospital purpose and equipment used in the diagnosis,
11  analysis, or treatment of hospital patients sold to a lessor
12  who leases the equipment, under a lease of one year or longer
13  executed or in effect at the time of the purchase, to a
14  hospital that has been issued an active tax exemption
15  identification number by the Department under Section 1g of
16  the Retailers' Occupation Tax Act.
17  (17) Personal property sold to a lessor who leases the
18  property, under a lease of one year or longer executed or in
19  effect at the time of the purchase, to a governmental body that
20  has been issued an active tax exemption identification number
21  by the Department under Section 1g of the Retailers'
22  Occupation Tax Act.
23  (18) Beginning with taxable years ending on or after
24  December 31, 1995 and ending with taxable years ending on or
25  before December 31, 2004, personal property that is donated
26  for disaster relief to be used in a State or federally declared

 

 

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1  disaster area in Illinois or bordering Illinois by a
2  manufacturer or retailer that is registered in this State to a
3  corporation, society, association, foundation, or institution
4  that has been issued a sales tax exemption identification
5  number by the Department that assists victims of the disaster
6  who reside within the declared disaster area.
7  (19) Beginning with taxable years ending on or after
8  December 31, 1995 and ending with taxable years ending on or
9  before December 31, 2004, personal property that is used in
10  the performance of infrastructure repairs in this State,
11  including, but not limited to, municipal roads and streets,
12  access roads, bridges, sidewalks, waste disposal systems,
13  water and sewer line extensions, water distribution and
14  purification facilities, storm water drainage and retention
15  facilities, and sewage treatment facilities, resulting from a
16  State or federally declared disaster in Illinois or bordering
17  Illinois when such repairs are initiated on facilities located
18  in the declared disaster area within 6 months after the
19  disaster.
20  (20) Beginning July 1, 1999, game or game birds sold at a
21  "game breeding and hunting preserve area" as that term is used
22  in the Wildlife Code. This paragraph is exempt from the
23  provisions of Section 3-55.
24  (21) A motor vehicle, as that term is defined in Section
25  1-146 of the Illinois Vehicle Code, that is donated to a
26  corporation, limited liability company, society, association,

 

 

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1  foundation, or institution that is determined by the
2  Department to be organized and operated exclusively for
3  educational purposes. For purposes of this exemption, "a
4  corporation, limited liability company, society, association,
5  foundation, or institution organized and operated exclusively
6  for educational purposes" means all tax-supported public
7  schools, private schools that offer systematic instruction in
8  useful branches of learning by methods common to public
9  schools and that compare favorably in their scope and
10  intensity with the course of study presented in tax-supported
11  schools, and vocational or technical schools or institutes
12  organized and operated exclusively to provide a course of
13  study of not less than 6 weeks duration and designed to prepare
14  individuals to follow a trade or to pursue a manual,
15  technical, mechanical, industrial, business, or commercial
16  occupation.
17  (22) Beginning January 1, 2000, personal property,
18  including food, purchased through fundraising events for the
19  benefit of a public or private elementary or secondary school,
20  a group of those schools, or one or more school districts if
21  the events are sponsored by an entity recognized by the school
22  district that consists primarily of volunteers and includes
23  parents and teachers of the school children. This paragraph
24  does not apply to fundraising events (i) for the benefit of
25  private home instruction or (ii) for which the fundraising
26  entity purchases the personal property sold at the events from

 

 

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1  another individual or entity that sold the property for the
2  purpose of resale by the fundraising entity and that profits
3  from the sale to the fundraising entity. This paragraph is
4  exempt from the provisions of Section 3-55.
5  (23) Beginning January 1, 2000 and through December 31,
6  2001, new or used automatic vending machines that prepare and
7  serve hot food and beverages, including coffee, soup, and
8  other items, and replacement parts for these machines.
9  Beginning January 1, 2002 and through June 30, 2003, machines
10  and parts for machines used in commercial, coin-operated
11  amusement and vending business if a use or occupation tax is
12  paid on the gross receipts derived from the use of the
13  commercial, coin-operated amusement and vending machines. This
14  paragraph is exempt from the provisions of Section 3-55.
15  (24) Beginning on August 2, 2001 (the effective date of
16  Public Act 92-227), computers and communications equipment
17  utilized for any hospital purpose and equipment used in the
18  diagnosis, analysis, or treatment of hospital patients sold to
19  a lessor who leases the equipment, under a lease of one year or
20  longer executed or in effect at the time of the purchase, to a
21  hospital that has been issued an active tax exemption
22  identification number by the Department under Section 1g of
23  the Retailers' Occupation Tax Act. This paragraph is exempt
24  from the provisions of Section 3-55.
25  (25) Beginning on August 2, 2001 (the effective date of
26  Public Act 92-227), personal property sold to a lessor who

 

 

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1  leases the property, under a lease of one year or longer
2  executed or in effect at the time of the purchase, to a
3  governmental body that has been issued an active tax exemption
4  identification number by the Department under Section 1g of
5  the Retailers' Occupation Tax Act. This paragraph is exempt
6  from the provisions of Section 3-55.
7  (26) Beginning on January 1, 2002 and through June 30,
8  2016, tangible personal property purchased from an Illinois
9  retailer by a taxpayer engaged in centralized purchasing
10  activities in Illinois who will, upon receipt of the property
11  in Illinois, temporarily store the property in Illinois (i)
12  for the purpose of subsequently transporting it outside this
13  State for use or consumption thereafter solely outside this
14  State or (ii) for the purpose of being processed, fabricated,
15  or manufactured into, attached to, or incorporated into other
16  tangible personal property to be transported outside this
17  State and thereafter used or consumed solely outside this
18  State. The Director of Revenue shall, pursuant to rules
19  adopted in accordance with the Illinois Administrative
20  Procedure Act, issue a permit to any taxpayer in good standing
21  with the Department who is eligible for the exemption under
22  this paragraph (26). The permit issued under this paragraph
23  (26) shall authorize the holder, to the extent and in the
24  manner specified in the rules adopted under this Act, to
25  purchase tangible personal property from a retailer exempt
26  from the taxes imposed by this Act. Taxpayers shall maintain

 

 

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1  all necessary books and records to substantiate the use and
2  consumption of all such tangible personal property outside of
3  the State of Illinois.
4  (27) Beginning January 1, 2008, tangible personal property
5  used in the construction or maintenance of a community water
6  supply, as defined under Section 3.145 of the Environmental
7  Protection Act, that is operated by a not-for-profit
8  corporation that holds a valid water supply permit issued
9  under Title IV of the Environmental Protection Act. This
10  paragraph is exempt from the provisions of Section 3-55.
11  (28) Tangible personal property sold to a
12  public-facilities corporation, as described in Section
13  11-65-10 of the Illinois Municipal Code, for purposes of
14  constructing or furnishing a municipal convention hall, but
15  only if the legal title to the municipal convention hall is
16  transferred to the municipality without any further
17  consideration by or on behalf of the municipality at the time
18  of the completion of the municipal convention hall or upon the
19  retirement or redemption of any bonds or other debt
20  instruments issued by the public-facilities corporation in
21  connection with the development of the municipal convention
22  hall. This exemption includes existing public-facilities
23  corporations as provided in Section 11-65-25 of the Illinois
24  Municipal Code. This paragraph is exempt from the provisions
25  of Section 3-55.
26  (29) Beginning January 1, 2010 and continuing through

 

 

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1  December 31, 2029, materials, parts, equipment, components,
2  and furnishings incorporated into or upon an aircraft as part
3  of the modification, refurbishment, completion, replacement,
4  repair, or maintenance of the aircraft. This exemption
5  includes consumable supplies used in the modification,
6  refurbishment, completion, replacement, repair, and
7  maintenance of aircraft. However, until January 1, 2024, this
8  exemption excludes any materials, parts, equipment,
9  components, and consumable supplies used in the modification,
10  replacement, repair, and maintenance of aircraft engines or
11  power plants, whether such engines or power plants are
12  installed or uninstalled upon any such aircraft. "Consumable
13  supplies" include, but are not limited to, adhesive, tape,
14  sandpaper, general purpose lubricants, cleaning solution,
15  latex gloves, and protective films.
16  Beginning January 1, 2010 and continuing through December
17  31, 2023, this exemption applies only to the transfer of
18  qualifying tangible personal property incident to the
19  modification, refurbishment, completion, replacement, repair,
20  or maintenance of an aircraft by persons who (i) hold an Air
21  Agency Certificate and are empowered to operate an approved
22  repair station by the Federal Aviation Administration, (ii)
23  have a Class IV Rating, and (iii) conduct operations in
24  accordance with Part 145 of the Federal Aviation Regulations.
25  The exemption does not include aircraft operated by a
26  commercial air carrier providing scheduled passenger air

 

 

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1  service pursuant to authority issued under Part 121 or Part
2  129 of the Federal Aviation Regulations. From January 1, 2024
3  through December 31, 2029, this exemption applies only to the
4  transfer of qualifying tangible personal property incident to:
5  (A) the modification, refurbishment, completion, repair,
6  replacement, or maintenance of an aircraft by persons who (i)
7  hold an Air Agency Certificate and are empowered to operate an
8  approved repair station by the Federal Aviation
9  Administration, (ii) have a Class IV Rating, and (iii) conduct
10  operations in accordance with Part 145 of the Federal Aviation
11  Regulations; and (B) the modification, replacement, repair,
12  and maintenance of aircraft engines or power plants without
13  regard to whether or not those persons meet the qualifications
14  of item (A).
15  The changes made to this paragraph (29) by Public Act
16  98-534 are declarative of existing law. It is the intent of the
17  General Assembly that the exemption under this paragraph (29)
18  applies continuously from January 1, 2010 through December 31,
19  2024; however, no claim for credit or refund is allowed for
20  taxes paid as a result of the disallowance of this exemption on
21  or after January 1, 2015 and prior to February 5, 2020 (the
22  effective date of Public Act 101-629).
23  (30) Beginning January 1, 2017 and through December 31,
24  2026, menstrual pads, tampons, and menstrual cups.
25  (31) Tangible personal property transferred to a purchaser
26  who is exempt from tax by operation of federal law. This

 

 

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1  paragraph is exempt from the provisions of Section 3-55.
2  (32) Qualified tangible personal property used in the
3  construction or operation of a data center that has been
4  granted a certificate of exemption by the Department of
5  Commerce and Economic Opportunity, whether that tangible
6  personal property is purchased by the owner, operator, or
7  tenant of the data center or by a contractor or subcontractor
8  of the owner, operator, or tenant. Data centers that would
9  have qualified for a certificate of exemption prior to January
10  1, 2020 had Public Act 101-31 been in effect, may apply for and
11  obtain an exemption for subsequent purchases of computer
12  equipment or enabling software purchased or leased to upgrade,
13  supplement, or replace computer equipment or enabling software
14  purchased or leased in the original investment that would have
15  qualified.
16  The Department of Commerce and Economic Opportunity shall
17  grant a certificate of exemption under this item (32) to
18  qualified data centers as defined by Section 605-1025 of the
19  Department of Commerce and Economic Opportunity Law of the
20  Civil Administrative Code of Illinois.
21  For the purposes of this item (32):
22  "Data center" means a building or a series of
23  buildings rehabilitated or constructed to house working
24  servers in one physical location or multiple sites within
25  the State of Illinois.
26  "Qualified tangible personal property" means:

 

 

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1  electrical systems and equipment; climate control and
2  chilling equipment and systems; mechanical systems and
3  equipment; monitoring and secure systems; emergency
4  generators; hardware; computers; servers; data storage
5  devices; network connectivity equipment; racks; cabinets;
6  telecommunications cabling infrastructure; raised floor
7  systems; peripheral components or systems; software;
8  mechanical, electrical, or plumbing systems; battery
9  systems; cooling systems and towers; temperature control
10  systems; other cabling; and other data center
11  infrastructure equipment and systems necessary to operate
12  qualified tangible personal property, including fixtures;
13  and component parts of any of the foregoing, including
14  installation, maintenance, repair, refurbishment, and
15  replacement of qualified tangible personal property to
16  generate, transform, transmit, distribute, or manage
17  electricity necessary to operate qualified tangible
18  personal property; and all other tangible personal
19  property that is essential to the operations of a computer
20  data center. The term "qualified tangible personal
21  property" also includes building materials physically
22  incorporated into the qualifying data center. To document
23  the exemption allowed under this Section, the retailer
24  must obtain from the purchaser a copy of the certificate
25  of eligibility issued by the Department of Commerce and
26  Economic Opportunity.

 

 

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1  This item (32) is exempt from the provisions of Section
2  3-55.
3  (33) Beginning July 1, 2022, breast pumps, breast pump
4  collection and storage supplies, and breast pump kits. This
5  item (33) is exempt from the provisions of Section 3-55. As
6  used in this item (33):
7  "Breast pump" means an electrically controlled or
8  manually controlled pump device designed or marketed to be
9  used to express milk from a human breast during lactation,
10  including the pump device and any battery, AC adapter, or
11  other power supply unit that is used to power the pump
12  device and is packaged and sold with the pump device at the
13  time of sale.
14  "Breast pump collection and storage supplies" means
15  items of tangible personal property designed or marketed
16  to be used in conjunction with a breast pump to collect
17  milk expressed from a human breast and to store collected
18  milk until it is ready for consumption.
19  "Breast pump collection and storage supplies"
20  includes, but is not limited to: breast shields and breast
21  shield connectors; breast pump tubes and tubing adapters;
22  breast pump valves and membranes; backflow protectors and
23  backflow protector adaptors; bottles and bottle caps
24  specific to the operation of the breast pump; and breast
25  milk storage bags.
26  "Breast pump collection and storage supplies" does not

 

 

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1  include: (1) bottles and bottle caps not specific to the
2  operation of the breast pump; (2) breast pump travel bags
3  and other similar carrying accessories, including ice
4  packs, labels, and other similar products; (3) breast pump
5  cleaning supplies; (4) nursing bras, bra pads, breast
6  shells, and other similar products; and (5) creams,
7  ointments, and other similar products that relieve
8  breastfeeding-related symptoms or conditions of the
9  breasts or nipples, unless sold as part of a breast pump
10  kit that is pre-packaged by the breast pump manufacturer
11  or distributor.
12  "Breast pump kit" means a kit that: (1) contains no
13  more than a breast pump, breast pump collection and
14  storage supplies, a rechargeable battery for operating the
15  breast pump, a breastmilk cooler, bottle stands, ice
16  packs, and a breast pump carrying case; and (2) is
17  pre-packaged as a breast pump kit by the breast pump
18  manufacturer or distributor.
19  (34) Tangible personal property sold by or on behalf of
20  the State Treasurer pursuant to the Revised Uniform Unclaimed
21  Property Act. This item (34) is exempt from the provisions of
22  Section 3-55.
23  (35) Beginning on January 1, 2024, tangible personal
24  property purchased by an active duty member of the armed
25  forces of the United States who presents valid military
26  identification and purchases the property using a form of

 

 

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1  payment where the federal government is the payor. The member
2  of the armed forces must complete, at the point of sale, a form
3  prescribed by the Department of Revenue documenting that the
4  transaction is eligible for the exemption under this
5  paragraph. Retailers must keep the form as documentation of
6  the exemption in their records for a period of not less than 6
7  years. "Armed forces of the United States" means the United
8  States Army, Navy, Air Force, Space Force, Marine Corps, or
9  Coast Guard. This paragraph is exempt from the provisions of
10  Section 3-55.
11  (36) Beginning July 1, 2024, home-delivered meals provided
12  to Medicare or Medicaid recipients when payment is made by an
13  intermediary, such as a Medicare Administrative Contractor, a
14  Managed Care Organization, or a Medicare Advantage
15  Organization, pursuant to a government contract. This
16  paragraph (36) (35) is exempt from the provisions of Section
17  3-55.
18  (37) (36) Beginning on January 1, 2026, as further defined
19  in Section 3-10, food prepared for immediate consumption and
20  transferred incident to a sale of service subject to this Act
21  or the Service Use Tax Act by an entity licensed under the
22  Hospital Licensing Act, the Nursing Home Care Act, the
23  Assisted Living and Shared Housing Act, the ID/DD Community
24  Care Act, the MC/DD Act, the Specialized Mental Health
25  Rehabilitation Act of 2013, or the Child Care Act of 1969 or by
26  an entity that holds a permit issued pursuant to the Life Care

 

 

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1  Facilities Act. This item (37) (36) is exempt from the
2  provisions of Section 3-55.
3  (38) (37) Beginning on January 1, 2026, as further defined
4  in Section 3-10, food for human consumption that is to be
5  consumed off the premises where it is sold (other than
6  alcoholic beverages, food consisting of or infused with adult
7  use cannabis, soft drinks, candy, and food that has been
8  prepared for immediate consumption). This item (38) (37) is
9  exempt from the provisions of Section 3-55.
10  (39) (36) The lease of the following tangible personal
11  property:
12  (1) computer software transferred subject to a license
13  that meets the following requirements:
14  (A) it is evidenced by a written agreement signed
15  by the licensor and the customer;
16  (i) an electronic agreement in which the
17  customer accepts the license by means of an
18  electronic signature that is verifiable and can be
19  authenticated and is attached to or made part of
20  the license will comply with this requirement;
21  (ii) a license agreement in which the customer
22  electronically accepts the terms by clicking "I
23  agree" does not comply with this requirement;
24  (B) it restricts the customer's duplication and
25  use of the software;
26  (C) it prohibits the customer from licensing,

 

 

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1  sublicensing, or transferring the software to a third
2  party (except to a related party) without the
3  permission and continued control of the licensor;
4  (D) the licensor has a policy of providing another
5  copy at minimal or no charge if the customer loses or
6  damages the software, or of permitting the licensee to
7  make and keep an archival copy, and such policy is
8  either stated in the license agreement, supported by
9  the licensor's books and records, or supported by a
10  notarized statement made under penalties of perjury by
11  the licensor; and
12  (E) the customer must destroy or return all copies
13  of the software to the licensor at the end of the
14  license period; this provision is deemed to be met, in
15  the case of a perpetual license, without being set
16  forth in the license agreement; and
17  (2) property that is subject to a tax on lease
18  receipts imposed by a home rule unit of local government
19  if the ordinance imposing that tax was adopted prior to
20  January 1, 2023.
21  (40) Materials furnished to a common interest community
22  association pursuant to a contract entered into with the
23  highway commissioner of a road district under subsection (k)
24  of Section 1-30 of the Common Interest Community Association
25  Act. This paragraph is exempt from the provisions of Section
26  3-55.

 

 

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1  (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
2  Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
3  75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
4  Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
5  eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
6  103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
7  7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995,
8  eff. 8-9-24; revised 11-26-24.)
9  Section 20. The Retailers' Occupation Tax Act is amended
10  by changing Section 2-5 as follows:
11  (35 ILCS 120/2-5)
12  Sec. 2-5. Exemptions. Gross receipts from proceeds from
13  the sale, which, on and after January 1, 2025, includes the
14  lease, of the following tangible personal property are exempt
15  from the tax imposed by this Act:
16  (1) Farm chemicals.
17  (2) Farm machinery and equipment, both new and used,
18  including that manufactured on special order, certified by
19  the purchaser to be used primarily for production
20  agriculture or State or federal agricultural programs,
21  including individual replacement parts for the machinery
22  and equipment, including machinery and equipment purchased
23  for lease, and including implements of husbandry defined
24  in Section 1-130 of the Illinois Vehicle Code, farm

 

 

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1  machinery and agricultural chemical and fertilizer
2  spreaders, and nurse wagons required to be registered
3  under Section 3-809 of the Illinois Vehicle Code, but
4  excluding other motor vehicles required to be registered
5  under the Illinois Vehicle Code. Horticultural polyhouses
6  or hoop houses used for propagating, growing, or
7  overwintering plants shall be considered farm machinery
8  and equipment under this item (2). Agricultural chemical
9  tender tanks and dry boxes shall include units sold
10  separately from a motor vehicle required to be licensed
11  and units sold mounted on a motor vehicle required to be
12  licensed, if the selling price of the tender is separately
13  stated.
14  Farm machinery and equipment shall include precision
15  farming equipment that is installed or purchased to be
16  installed on farm machinery and equipment including, but
17  not limited to, tractors, harvesters, sprayers, planters,
18  seeders, or spreaders. Precision farming equipment
19  includes, but is not limited to, soil testing sensors,
20  computers, monitors, software, global positioning and
21  mapping systems, and other such equipment.
22  Farm machinery and equipment also includes computers,
23  sensors, software, and related equipment used primarily in
24  the computer-assisted operation of production agriculture
25  facilities, equipment, and activities such as, but not
26  limited to, the collection, monitoring, and correlation of

 

 

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1  animal and crop data for the purpose of formulating animal
2  diets and agricultural chemicals.
3  Beginning on January 1, 2024, farm machinery and
4  equipment also includes electrical power generation
5  equipment used primarily for production agriculture.
6  This item (2) is exempt from the provisions of Section
7  2-70.
8  (3) Until July 1, 2003, distillation machinery and
9  equipment, sold as a unit or kit, assembled or installed
10  by the retailer, certified by the user to be used only for
11  the production of ethyl alcohol that will be used for
12  consumption as motor fuel or as a component of motor fuel
13  for the personal use of the user, and not subject to sale
14  or resale.
15  (4) Until July 1, 2003 and beginning again September
16  1, 2004 through August 30, 2014, graphic arts machinery
17  and equipment, including repair and replacement parts,
18  both new and used, and including that manufactured on
19  special order or purchased for lease, certified by the
20  purchaser to be used primarily for graphic arts
21  production. Equipment includes chemicals or chemicals
22  acting as catalysts but only if the chemicals or chemicals
23  acting as catalysts effect a direct and immediate change
24  upon a graphic arts product. Beginning on July 1, 2017,
25  graphic arts machinery and equipment is included in the
26  manufacturing and assembling machinery and equipment

 

 

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1  exemption under paragraph (14).
2  (5) A motor vehicle that is used for automobile
3  renting, as defined in the Automobile Renting Occupation
4  and Use Tax Act. This paragraph is exempt from the
5  provisions of Section 2-70.
6  (6) Personal property sold by a teacher-sponsored
7  student organization affiliated with an elementary or
8  secondary school located in Illinois.
9  (7) Until July 1, 2003, proceeds of that portion of
10  the selling price of a passenger car the sale of which is
11  subject to the Replacement Vehicle Tax.
12  (8) Personal property sold to an Illinois county fair
13  association for use in conducting, operating, or promoting
14  the county fair.
15  (9) Personal property sold to a not-for-profit arts or
16  cultural organization that establishes, by proof required
17  by the Department by rule, that it has received an
18  exemption under Section 501(c)(3) of the Internal Revenue
19  Code and that is organized and operated primarily for the
20  presentation or support of arts or cultural programming,
21  activities, or services. These organizations include, but
22  are not limited to, music and dramatic arts organizations
23  such as symphony orchestras and theatrical groups, arts
24  and cultural service organizations, local arts councils,
25  visual arts organizations, and media arts organizations.
26  On and after July 1, 2001 (the effective date of Public Act

 

 

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1  92-35), however, an entity otherwise eligible for this
2  exemption shall not make tax-free purchases unless it has
3  an active identification number issued by the Department.
4  (10) Personal property sold by a corporation, society,
5  association, foundation, institution, or organization,
6  other than a limited liability company, that is organized
7  and operated as a not-for-profit service enterprise for
8  the benefit of persons 65 years of age or older if the
9  personal property was not purchased by the enterprise for
10  the purpose of resale by the enterprise.
11  (11) Except as otherwise provided in this Section,
12  personal property sold to a governmental body, to a
13  corporation, society, association, foundation, or
14  institution organized and operated exclusively for
15  charitable, religious, or educational purposes, or to a
16  not-for-profit corporation, society, association,
17  foundation, institution, or organization that has no
18  compensated officers or employees and that is organized
19  and operated primarily for the recreation of persons 55
20  years of age or older. A limited liability company may
21  qualify for the exemption under this paragraph only if the
22  limited liability company is organized and operated
23  exclusively for educational purposes. On and after July 1,
24  1987, however, no entity otherwise eligible for this
25  exemption shall make tax-free purchases unless it has an
26  active identification number issued by the Department.

 

 

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1  (12) (Blank).
2  (12-5) On and after July 1, 2003 and through June 30,
3  2004, motor vehicles of the second division with a gross
4  vehicle weight in excess of 8,000 pounds that are subject
5  to the commercial distribution fee imposed under Section
6  3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
7  2004 and through June 30, 2005, the use in this State of
8  motor vehicles of the second division: (i) with a gross
9  vehicle weight rating in excess of 8,000 pounds; (ii) that
10  are subject to the commercial distribution fee imposed
11  under Section 3-815.1 of the Illinois Vehicle Code; and
12  (iii) that are primarily used for commercial purposes.
13  Through June 30, 2005, this exemption applies to repair
14  and replacement parts added after the initial purchase of
15  such a motor vehicle if that motor vehicle is used in a
16  manner that would qualify for the rolling stock exemption
17  otherwise provided for in this Act. For purposes of this
18  paragraph, "used for commercial purposes" means the
19  transportation of persons or property in furtherance of
20  any commercial or industrial enterprise whether for-hire
21  or not.
22  (13) Proceeds from sales to owners or lessors,
23  lessees, or shippers of tangible personal property that is
24  utilized by interstate carriers for hire for use as
25  rolling stock moving in interstate commerce and equipment
26  operated by a telecommunications provider, licensed as a

 

 

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1  common carrier by the Federal Communications Commission,
2  which is permanently installed in or affixed to aircraft
3  moving in interstate commerce.
4  (14) Machinery and equipment that will be used by the
5  purchaser, or a lessee of the purchaser, primarily in the
6  process of manufacturing or assembling tangible personal
7  property for wholesale or retail sale or lease, whether
8  the sale or lease is made directly by the manufacturer or
9  by some other person, whether the materials used in the
10  process are owned by the manufacturer or some other
11  person, or whether the sale or lease is made apart from or
12  as an incident to the seller's engaging in the service
13  occupation of producing machines, tools, dies, jigs,
14  patterns, gauges, or other similar items of no commercial
15  value on special order for a particular purchaser. The
16  exemption provided by this paragraph (14) does not include
17  machinery and equipment used in (i) the generation of
18  electricity for wholesale or retail sale; (ii) the
19  generation or treatment of natural or artificial gas for
20  wholesale or retail sale that is delivered to customers
21  through pipes, pipelines, or mains; or (iii) the treatment
22  of water for wholesale or retail sale that is delivered to
23  customers through pipes, pipelines, or mains. The
24  provisions of Public Act 98-583 are declaratory of
25  existing law as to the meaning and scope of this
26  exemption. Beginning on July 1, 2017, the exemption

 

 

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1  provided by this paragraph (14) includes, but is not
2  limited to, graphic arts machinery and equipment, as
3  defined in paragraph (4) of this Section.
4  (15) Proceeds of mandatory service charges separately
5  stated on customers' bills for purchase and consumption of
6  food and beverages, to the extent that the proceeds of the
7  service charge are in fact turned over as tips or as a
8  substitute for tips to the employees who participate
9  directly in preparing, serving, hosting or cleaning up the
10  food or beverage function with respect to which the
11  service charge is imposed.
12  (16) Tangible personal property sold to a purchaser if
13  the purchaser is exempt from use tax by operation of
14  federal law. This paragraph is exempt from the provisions
15  of Section 2-70.
16  (17) Tangible personal property sold to a common
17  carrier by rail or motor that receives the physical
18  possession of the property in Illinois and that transports
19  the property, or shares with another common carrier in the
20  transportation of the property, out of Illinois on a
21  standard uniform bill of lading showing the seller of the
22  property as the shipper or consignor of the property to a
23  destination outside Illinois, for use outside Illinois.
24  (18) Legal tender, currency, medallions, or gold or
25  silver coinage issued by the State of Illinois, the
26  government of the United States of America, or the

 

 

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1  government of any foreign country, and bullion.
2  (19) Until July 1, 2003, oil field exploration,
3  drilling, and production equipment, including (i) rigs and
4  parts of rigs, rotary rigs, cable tool rigs, and workover
5  rigs, (ii) pipe and tubular goods, including casing and
6  drill strings, (iii) pumps and pump-jack units, (iv)
7  storage tanks and flow lines, (v) any individual
8  replacement part for oil field exploration, drilling, and
9  production equipment, and (vi) machinery and equipment
10  purchased for lease; but excluding motor vehicles required
11  to be registered under the Illinois Vehicle Code.
12  (20) Photoprocessing machinery and equipment,
13  including repair and replacement parts, both new and used,
14  including that manufactured on special order, certified by
15  the purchaser to be used primarily for photoprocessing,
16  and including photoprocessing machinery and equipment
17  purchased for lease.
18  (21) Until July 1, 2028, coal and aggregate
19  exploration, mining, off-highway hauling, processing,
20  maintenance, and reclamation equipment, including
21  replacement parts and equipment, and including equipment
22  purchased for lease, but excluding motor vehicles required
23  to be registered under the Illinois Vehicle Code. The
24  changes made to this Section by Public Act 97-767 apply on
25  and after July 1, 2003, but no claim for credit or refund
26  is allowed on or after August 16, 2013 (the effective date

 

 

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1  of Public Act 98-456) for such taxes paid during the
2  period beginning July 1, 2003 and ending on August 16,
3  2013 (the effective date of Public Act 98-456).
4  (22) Until June 30, 2013, fuel and petroleum products
5  sold to or used by an air carrier, certified by the carrier
6  to be used for consumption, shipment, or storage in the
7  conduct of its business as an air common carrier, for a
8  flight destined for or returning from a location or
9  locations outside the United States without regard to
10  previous or subsequent domestic stopovers.
11  Beginning July 1, 2013, fuel and petroleum products
12  sold to or used by an air carrier, certified by the carrier
13  to be used for consumption, shipment, or storage in the
14  conduct of its business as an air common carrier, for a
15  flight that (i) is engaged in foreign trade or is engaged
16  in trade between the United States and any of its
17  possessions and (ii) transports at least one individual or
18  package for hire from the city of origination to the city
19  of final destination on the same aircraft, without regard
20  to a change in the flight number of that aircraft.
21  (23) A transaction in which the purchase order is
22  received by a florist who is located outside Illinois, but
23  who has a florist located in Illinois deliver the property
24  to the purchaser or the purchaser's donee in Illinois.
25  (24) Fuel consumed or used in the operation of ships,
26  barges, or vessels that are used primarily in or for the

 

 

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1  transportation of property or the conveyance of persons
2  for hire on rivers bordering on this State if the fuel is
3  delivered by the seller to the purchaser's barge, ship, or
4  vessel while it is afloat upon that bordering river.
5  (25) Except as provided in item (25-5) of this
6  Section, a motor vehicle sold in this State to a
7  nonresident even though the motor vehicle is delivered to
8  the nonresident in this State, if the motor vehicle is not
9  to be titled in this State, and if a drive-away permit is
10  issued to the motor vehicle as provided in Section 3-603
11  of the Illinois Vehicle Code or if the nonresident
12  purchaser has vehicle registration plates to transfer to
13  the motor vehicle upon returning to his or her home state.
14  The issuance of the drive-away permit or having the
15  out-of-state registration plates to be transferred is
16  prima facie evidence that the motor vehicle will not be
17  titled in this State.
18  (25-5) The exemption under item (25) does not apply if
19  the state in which the motor vehicle will be titled does
20  not allow a reciprocal exemption for a motor vehicle sold
21  and delivered in that state to an Illinois resident but
22  titled in Illinois. The tax collected under this Act on
23  the sale of a motor vehicle in this State to a resident of
24  another state that does not allow a reciprocal exemption
25  shall be imposed at a rate equal to the state's rate of tax
26  on taxable property in the state in which the purchaser is

 

 

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1  a resident, except that the tax shall not exceed the tax
2  that would otherwise be imposed under this Act. At the
3  time of the sale, the purchaser shall execute a statement,
4  signed under penalty of perjury, of his or her intent to
5  title the vehicle in the state in which the purchaser is a
6  resident within 30 days after the sale and of the fact of
7  the payment to the State of Illinois of tax in an amount
8  equivalent to the state's rate of tax on taxable property
9  in his or her state of residence and shall submit the
10  statement to the appropriate tax collection agency in his
11  or her state of residence. In addition, the retailer must
12  retain a signed copy of the statement in his or her
13  records. Nothing in this item shall be construed to
14  require the removal of the vehicle from this state
15  following the filing of an intent to title the vehicle in
16  the purchaser's state of residence if the purchaser titles
17  the vehicle in his or her state of residence within 30 days
18  after the date of sale. The tax collected under this Act in
19  accordance with this item (25-5) shall be proportionately
20  distributed as if the tax were collected at the 6.25%
21  general rate imposed under this Act.
22  (25-7) Beginning on July 1, 2007, no tax is imposed
23  under this Act on the sale of an aircraft, as defined in
24  Section 3 of the Illinois Aeronautics Act, if all of the
25  following conditions are met:
26  (1) the aircraft leaves this State within 15 days

 

 

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1  after the later of either the issuance of the final
2  billing for the sale of the aircraft, or the
3  authorized approval for return to service, completion
4  of the maintenance record entry, and completion of the
5  test flight and ground test for inspection, as
6  required by 14 CFR 91.407;
7  (2) the aircraft is not based or registered in
8  this State after the sale of the aircraft; and
9  (3) the seller retains in his or her books and
10  records and provides to the Department a signed and
11  dated certification from the purchaser, on a form
12  prescribed by the Department, certifying that the
13  requirements of this item (25-7) are met. The
14  certificate must also include the name and address of
15  the purchaser, the address of the location where the
16  aircraft is to be titled or registered, the address of
17  the primary physical location of the aircraft, and
18  other information that the Department may reasonably
19  require.
20  For purposes of this item (25-7):
21  "Based in this State" means hangared, stored, or
22  otherwise used, excluding post-sale customizations as
23  defined in this Section, for 10 or more days in each
24  12-month period immediately following the date of the sale
25  of the aircraft.
26  "Registered in this State" means an aircraft

 

 

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1  registered with the Department of Transportation,
2  Aeronautics Division, or titled or registered with the
3  Federal Aviation Administration to an address located in
4  this State.
5  This paragraph (25-7) is exempt from the provisions of
6  Section 2-70.
7  (26) Semen used for artificial insemination of
8  livestock for direct agricultural production.
9  (27) Horses, or interests in horses, registered with
10  and meeting the requirements of any of the Arabian Horse
11  Club Registry of America, Appaloosa Horse Club, American
12  Quarter Horse Association, United States Trotting
13  Association, or Jockey Club, as appropriate, used for
14  purposes of breeding or racing for prizes. This item (27)
15  is exempt from the provisions of Section 2-70, and the
16  exemption provided for under this item (27) applies for
17  all periods beginning May 30, 1995, but no claim for
18  credit or refund is allowed on or after January 1, 2008
19  (the effective date of Public Act 95-88) for such taxes
20  paid during the period beginning May 30, 2000 and ending
21  on January 1, 2008 (the effective date of Public Act
22  95-88).
23  (28) Computers and communications equipment utilized
24  for any hospital purpose and equipment used in the
25  diagnosis, analysis, or treatment of hospital patients
26  sold to a lessor who leases the equipment, under a lease of

 

 

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1  one year or longer executed or in effect at the time of the
2  purchase, to a hospital that has been issued an active tax
3  exemption identification number by the Department under
4  Section 1g of this Act.
5  (29) Personal property sold to a lessor who leases the
6  property, under a lease of one year or longer executed or
7  in effect at the time of the purchase, to a governmental
8  body that has been issued an active tax exemption
9  identification number by the Department under Section 1g
10  of this Act.
11  (30) Beginning with taxable years ending on or after
12  December 31, 1995 and ending with taxable years ending on
13  or before December 31, 2004, personal property that is
14  donated for disaster relief to be used in a State or
15  federally declared disaster area in Illinois or bordering
16  Illinois by a manufacturer or retailer that is registered
17  in this State to a corporation, society, association,
18  foundation, or institution that has been issued a sales
19  tax exemption identification number by the Department that
20  assists victims of the disaster who reside within the
21  declared disaster area.
22  (31) Beginning with taxable years ending on or after
23  December 31, 1995 and ending with taxable years ending on
24  or before December 31, 2004, personal property that is
25  used in the performance of infrastructure repairs in this
26  State, including, but not limited to, municipal roads and

 

 

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1  streets, access roads, bridges, sidewalks, waste disposal
2  systems, water and sewer line extensions, water
3  distribution and purification facilities, storm water
4  drainage and retention facilities, and sewage treatment
5  facilities, resulting from a State or federally declared
6  disaster in Illinois or bordering Illinois when such
7  repairs are initiated on facilities located in the
8  declared disaster area within 6 months after the disaster.
9  (32) Beginning July 1, 1999, game or game birds sold
10  at a "game breeding and hunting preserve area" as that
11  term is used in the Wildlife Code. This paragraph is
12  exempt from the provisions of Section 2-70.
13  (33) A motor vehicle, as that term is defined in
14  Section 1-146 of the Illinois Vehicle Code, that is
15  donated to a corporation, limited liability company,
16  society, association, foundation, or institution that is
17  determined by the Department to be organized and operated
18  exclusively for educational purposes. For purposes of this
19  exemption, "a corporation, limited liability company,
20  society, association, foundation, or institution organized
21  and operated exclusively for educational purposes" means
22  all tax-supported public schools, private schools that
23  offer systematic instruction in useful branches of
24  learning by methods common to public schools and that
25  compare favorably in their scope and intensity with the
26  course of study presented in tax-supported schools, and

 

 

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1  vocational or technical schools or institutes organized
2  and operated exclusively to provide a course of study of
3  not less than 6 weeks duration and designed to prepare
4  individuals to follow a trade or to pursue a manual,
5  technical, mechanical, industrial, business, or commercial
6  occupation.
7  (34) Beginning January 1, 2000, personal property,
8  including food, purchased through fundraising events for
9  the benefit of a public or private elementary or secondary
10  school, a group of those schools, or one or more school
11  districts if the events are sponsored by an entity
12  recognized by the school district that consists primarily
13  of volunteers and includes parents and teachers of the
14  school children. This paragraph does not apply to
15  fundraising events (i) for the benefit of private home
16  instruction or (ii) for which the fundraising entity
17  purchases the personal property sold at the events from
18  another individual or entity that sold the property for
19  the purpose of resale by the fundraising entity and that
20  profits from the sale to the fundraising entity. This
21  paragraph is exempt from the provisions of Section 2-70.
22  (35) Beginning January 1, 2000 and through December
23  31, 2001, new or used automatic vending machines that
24  prepare and serve hot food and beverages, including
25  coffee, soup, and other items, and replacement parts for
26  these machines. Beginning January 1, 2002 and through June

 

 

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1  30, 2003, machines and parts for machines used in
2  commercial, coin-operated amusement and vending business
3  if a use or occupation tax is paid on the gross receipts
4  derived from the use of the commercial, coin-operated
5  amusement and vending machines. This paragraph is exempt
6  from the provisions of Section 2-70.
7  (35-5) Beginning August 23, 2001 and through June 30,
8  2016, food for human consumption that is to be consumed
9  off the premises where it is sold (other than alcoholic
10  beverages, soft drinks, and food that has been prepared
11  for immediate consumption) and prescription and
12  nonprescription medicines, drugs, medical appliances, and
13  insulin, urine testing materials, syringes, and needles
14  used by diabetics, for human use, when purchased for use
15  by a person receiving medical assistance under Article V
16  of the Illinois Public Aid Code who resides in a licensed
17  long-term care facility, as defined in the Nursing Home
18  Care Act, or a licensed facility as defined in the ID/DD
19  Community Care Act, the MC/DD Act, or the Specialized
20  Mental Health Rehabilitation Act of 2013.
21  (36) Beginning August 2, 2001, computers and
22  communications equipment utilized for any hospital purpose
23  and equipment used in the diagnosis, analysis, or
24  treatment of hospital patients sold to a lessor who leases
25  the equipment, under a lease of one year or longer
26  executed or in effect at the time of the purchase, to a

 

 

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1  hospital that has been issued an active tax exemption
2  identification number by the Department under Section 1g
3  of this Act. This paragraph is exempt from the provisions
4  of Section 2-70.
5  (37) Beginning August 2, 2001, personal property sold
6  to a lessor who leases the property, under a lease of one
7  year or longer executed or in effect at the time of the
8  purchase, to a governmental body that has been issued an
9  active tax exemption identification number by the
10  Department under Section 1g of this Act. This paragraph is
11  exempt from the provisions of Section 2-70.
12  (38) Beginning on January 1, 2002 and through June 30,
13  2016, tangible personal property purchased from an
14  Illinois retailer by a taxpayer engaged in centralized
15  purchasing activities in Illinois who will, upon receipt
16  of the property in Illinois, temporarily store the
17  property in Illinois (i) for the purpose of subsequently
18  transporting it outside this State for use or consumption
19  thereafter solely outside this State or (ii) for the
20  purpose of being processed, fabricated, or manufactured
21  into, attached to, or incorporated into other tangible
22  personal property to be transported outside this State and
23  thereafter used or consumed solely outside this State. The
24  Director of Revenue shall, pursuant to rules adopted in
25  accordance with the Illinois Administrative Procedure Act,
26  issue a permit to any taxpayer in good standing with the

 

 

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1  Department who is eligible for the exemption under this
2  paragraph (38). The permit issued under this paragraph
3  (38) shall authorize the holder, to the extent and in the
4  manner specified in the rules adopted under this Act, to
5  purchase tangible personal property from a retailer exempt
6  from the taxes imposed by this Act. Taxpayers shall
7  maintain all necessary books and records to substantiate
8  the use and consumption of all such tangible personal
9  property outside of the State of Illinois.
10  (39) Beginning January 1, 2008, tangible personal
11  property used in the construction or maintenance of a
12  community water supply, as defined under Section 3.145 of
13  the Environmental Protection Act, that is operated by a
14  not-for-profit corporation that holds a valid water supply
15  permit issued under Title IV of the Environmental
16  Protection Act. This paragraph is exempt from the
17  provisions of Section 2-70.
18  (40) Beginning January 1, 2010 and continuing through
19  December 31, 2029, materials, parts, equipment,
20  components, and furnishings incorporated into or upon an
21  aircraft as part of the modification, refurbishment,
22  completion, replacement, repair, or maintenance of the
23  aircraft. This exemption includes consumable supplies used
24  in the modification, refurbishment, completion,
25  replacement, repair, and maintenance of aircraft. However,
26  until January 1, 2024, this exemption excludes any

 

 

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1  materials, parts, equipment, components, and consumable
2  supplies used in the modification, replacement, repair,
3  and maintenance of aircraft engines or power plants,
4  whether such engines or power plants are installed or
5  uninstalled upon any such aircraft. "Consumable supplies"
6  include, but are not limited to, adhesive, tape,
7  sandpaper, general purpose lubricants, cleaning solution,
8  latex gloves, and protective films.
9  Beginning January 1, 2010 and continuing through
10  December 31, 2023, this exemption applies only to the sale
11  of qualifying tangible personal property to persons who
12  modify, refurbish, complete, replace, or maintain an
13  aircraft and who (i) hold an Air Agency Certificate and
14  are empowered to operate an approved repair station by the
15  Federal Aviation Administration, (ii) have a Class IV
16  Rating, and (iii) conduct operations in accordance with
17  Part 145 of the Federal Aviation Regulations. The
18  exemption does not include aircraft operated by a
19  commercial air carrier providing scheduled passenger air
20  service pursuant to authority issued under Part 121 or
21  Part 129 of the Federal Aviation Regulations. From January
22  1, 2024 through December 31, 2029, this exemption applies
23  only to the sale of qualifying tangible personal property
24  to: (A) persons who modify, refurbish, complete, repair,
25  replace, or maintain aircraft and who (i) hold an Air
26  Agency Certificate and are empowered to operate an

 

 

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1  approved repair station by the Federal Aviation
2  Administration, (ii) have a Class IV Rating, and (iii)
3  conduct operations in accordance with Part 145 of the
4  Federal Aviation Regulations; and (B) persons who engage
5  in the modification, replacement, repair, and maintenance
6  of aircraft engines or power plants without regard to
7  whether or not those persons meet the qualifications of
8  item (A).
9  The changes made to this paragraph (40) by Public Act
10  98-534 are declarative of existing law. It is the intent
11  of the General Assembly that the exemption under this
12  paragraph (40) applies continuously from January 1, 2010
13  through December 31, 2024; however, no claim for credit or
14  refund is allowed for taxes paid as a result of the
15  disallowance of this exemption on or after January 1, 2015
16  and prior to February 5, 2020 (the effective date of
17  Public Act 101-629).
18  (41) Tangible personal property sold to a
19  public-facilities corporation, as described in Section
20  11-65-10 of the Illinois Municipal Code, for purposes of
21  constructing or furnishing a municipal convention hall,
22  but only if the legal title to the municipal convention
23  hall is transferred to the municipality without any
24  further consideration by or on behalf of the municipality
25  at the time of the completion of the municipal convention
26  hall or upon the retirement or redemption of any bonds or

 

 

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1  other debt instruments issued by the public-facilities
2  corporation in connection with the development of the
3  municipal convention hall. This exemption includes
4  existing public-facilities corporations as provided in
5  Section 11-65-25 of the Illinois Municipal Code. This
6  paragraph is exempt from the provisions of Section 2-70.
7  (42) Beginning January 1, 2017 and through December
8  31, 2026, menstrual pads, tampons, and menstrual cups.
9  (43) Merchandise that is subject to the Rental
10  Purchase Agreement Occupation and Use Tax. The purchaser
11  must certify that the item is purchased to be rented
12  subject to a rental-purchase agreement, as defined in the
13  Rental-Purchase Agreement Act, and provide proof of
14  registration under the Rental Purchase Agreement
15  Occupation and Use Tax Act. This paragraph is exempt from
16  the provisions of Section 2-70.
17  (44) Qualified tangible personal property used in the
18  construction or operation of a data center that has been
19  granted a certificate of exemption by the Department of
20  Commerce and Economic Opportunity, whether that tangible
21  personal property is purchased by the owner, operator, or
22  tenant of the data center or by a contractor or
23  subcontractor of the owner, operator, or tenant. Data
24  centers that would have qualified for a certificate of
25  exemption prior to January 1, 2020 had Public Act 101-31
26  been in effect, may apply for and obtain an exemption for

 

 

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1  subsequent purchases of computer equipment or enabling
2  software purchased or leased to upgrade, supplement, or
3  replace computer equipment or enabling software purchased
4  or leased in the original investment that would have
5  qualified.
6  The Department of Commerce and Economic Opportunity
7  shall grant a certificate of exemption under this item
8  (44) to qualified data centers as defined by Section
9  605-1025 of the Department of Commerce and Economic
10  Opportunity Law of the Civil Administrative Code of
11  Illinois.
12  For the purposes of this item (44):
13  "Data center" means a building or a series of
14  buildings rehabilitated or constructed to house
15  working servers in one physical location or multiple
16  sites within the State of Illinois.
17  "Qualified tangible personal property" means:
18  electrical systems and equipment; climate control and
19  chilling equipment and systems; mechanical systems and
20  equipment; monitoring and secure systems; emergency
21  generators; hardware; computers; servers; data storage
22  devices; network connectivity equipment; racks;
23  cabinets; telecommunications cabling infrastructure;
24  raised floor systems; peripheral components or
25  systems; software; mechanical, electrical, or plumbing
26  systems; battery systems; cooling systems and towers;

 

 

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1  temperature control systems; other cabling; and other
2  data center infrastructure equipment and systems
3  necessary to operate qualified tangible personal
4  property, including fixtures; and component parts of
5  any of the foregoing, including installation,
6  maintenance, repair, refurbishment, and replacement of
7  qualified tangible personal property to generate,
8  transform, transmit, distribute, or manage electricity
9  necessary to operate qualified tangible personal
10  property; and all other tangible personal property
11  that is essential to the operations of a computer data
12  center. The term "qualified tangible personal
13  property" also includes building materials physically
14  incorporated into the qualifying data center. To
15  document the exemption allowed under this Section, the
16  retailer must obtain from the purchaser a copy of the
17  certificate of eligibility issued by the Department of
18  Commerce and Economic Opportunity.
19  This item (44) is exempt from the provisions of
20  Section 2-70.
21  (45) Beginning January 1, 2020 and through December
22  31, 2020, sales of tangible personal property made by a
23  marketplace seller over a marketplace for which tax is due
24  under this Act but for which use tax has been collected and
25  remitted to the Department by a marketplace facilitator
26  under Section 2d of the Use Tax Act are exempt from tax

 

 

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1  under this Act. A marketplace seller claiming this
2  exemption shall maintain books and records demonstrating
3  that the use tax on such sales has been collected and
4  remitted by a marketplace facilitator. Marketplace sellers
5  that have properly remitted tax under this Act on such
6  sales may file a claim for credit as provided in Section 6
7  of this Act. No claim is allowed, however, for such taxes
8  for which a credit or refund has been issued to the
9  marketplace facilitator under the Use Tax Act, or for
10  which the marketplace facilitator has filed a claim for
11  credit or refund under the Use Tax Act.
12  (46) Beginning July 1, 2022, breast pumps, breast pump
13  collection and storage supplies, and breast pump kits.
14  This item (46) is exempt from the provisions of Section
15  2-70. As used in this item (46):
16  "Breast pump" means an electrically controlled or
17  manually controlled pump device designed or marketed to be
18  used to express milk from a human breast during lactation,
19  including the pump device and any battery, AC adapter, or
20  other power supply unit that is used to power the pump
21  device and is packaged and sold with the pump device at the
22  time of sale.
23  "Breast pump collection and storage supplies" means
24  items of tangible personal property designed or marketed
25  to be used in conjunction with a breast pump to collect
26  milk expressed from a human breast and to store collected

 

 

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1  milk until it is ready for consumption.
2  "Breast pump collection and storage supplies"
3  includes, but is not limited to: breast shields and breast
4  shield connectors; breast pump tubes and tubing adapters;
5  breast pump valves and membranes; backflow protectors and
6  backflow protector adaptors; bottles and bottle caps
7  specific to the operation of the breast pump; and breast
8  milk storage bags.
9  "Breast pump collection and storage supplies" does not
10  include: (1) bottles and bottle caps not specific to the
11  operation of the breast pump; (2) breast pump travel bags
12  and other similar carrying accessories, including ice
13  packs, labels, and other similar products; (3) breast pump
14  cleaning supplies; (4) nursing bras, bra pads, breast
15  shells, and other similar products; and (5) creams,
16  ointments, and other similar products that relieve
17  breastfeeding-related symptoms or conditions of the
18  breasts or nipples, unless sold as part of a breast pump
19  kit that is pre-packaged by the breast pump manufacturer
20  or distributor.
21  "Breast pump kit" means a kit that: (1) contains no
22  more than a breast pump, breast pump collection and
23  storage supplies, a rechargeable battery for operating the
24  breast pump, a breastmilk cooler, bottle stands, ice
25  packs, and a breast pump carrying case; and (2) is
26  pre-packaged as a breast pump kit by the breast pump

 

 

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1  manufacturer or distributor.
2  (47) Tangible personal property sold by or on behalf
3  of the State Treasurer pursuant to the Revised Uniform
4  Unclaimed Property Act. This item (47) is exempt from the
5  provisions of Section 2-70.
6  (48) Beginning on January 1, 2024, tangible personal
7  property purchased by an active duty member of the armed
8  forces of the United States who presents valid military
9  identification and purchases the property using a form of
10  payment where the federal government is the payor. The
11  member of the armed forces must complete, at the point of
12  sale, a form prescribed by the Department of Revenue
13  documenting that the transaction is eligible for the
14  exemption under this paragraph. Retailers must keep the
15  form as documentation of the exemption in their records
16  for a period of not less than 6 years. "Armed forces of the
17  United States" means the United States Army, Navy, Air
18  Force, Space Force, Marine Corps, or Coast Guard. This
19  paragraph is exempt from the provisions of Section 2-70.
20  (49) Beginning July 1, 2024, home-delivered meals
21  provided to Medicare or Medicaid recipients when payment
22  is made by an intermediary, such as a Medicare
23  Administrative Contractor, a Managed Care Organization, or
24  a Medicare Advantage Organization, pursuant to a
25  government contract. This paragraph (49) is exempt from
26  the provisions of Section 2-70.

 

 

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1  (50) (49) Beginning on January 1, 2026, as further
2  defined in Section 2-10, food for human consumption that
3  is to be consumed off the premises where it is sold (other
4  than alcoholic beverages, food consisting of or infused
5  with adult use cannabis, soft drinks, candy, and food that
6  has been prepared for immediate consumption). This item
7  (50) (49) is exempt from the provisions of Section 2-70.
8  (51) (49) Gross receipts from the lease of the
9  following tangible personal property:
10  (1) computer software transferred subject to a
11  license that meets the following requirements:
12  (A) it is evidenced by a written agreement
13  signed by the licensor and the customer;
14  (i) an electronic agreement in which the
15  customer accepts the license by means of an
16  electronic signature that is verifiable and
17  can be authenticated and is attached to or
18  made part of the license will comply with this
19  requirement;
20  (ii) a license agreement in which the
21  customer electronically accepts the terms by
22  clicking "I agree" does not comply with this
23  requirement;
24  (B) it restricts the customer's duplication
25  and use of the software;
26  (C) it prohibits the customer from licensing,

 

 

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1  sublicensing, or transferring the software to a
2  third party (except to a related party) without
3  the permission and continued control of the
4  licensor;
5  (D) the licensor has a policy of providing
6  another copy at minimal or no charge if the
7  customer loses or damages the software, or of
8  permitting the licensee to make and keep an
9  archival copy, and such policy is either stated in
10  the license agreement, supported by the licensor's
11  books and records, or supported by a notarized
12  statement made under penalties of perjury by the
13  licensor; and
14  (E) the customer must destroy or return all
15  copies of the software to the licensor at the end
16  of the license period; this provision is deemed to
17  be met, in the case of a perpetual license,
18  without being set forth in the license agreement;
19  and
20  (2) property that is subject to a tax on lease
21  receipts imposed by a home rule unit of local
22  government if the ordinance imposing that tax was
23  adopted prior to January 1, 2023.
24  (52) Materials furnished to a common interest
25  community association pursuant to a contract entered into
26  with the highway commissioner of a road district under

 

 

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