Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1178 Compare Versions

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

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1178 Introduced 1/24/2025, by Sen. Michael W. Halpin SYNOPSIS AS INTRODUCED: 35 ILCS 5/246 new35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5 Amends the Illinois Income Tax Act. Creates an income tax credit for developers that invest in a qualified project redeveloping a brownfield or grayfield. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Creates an exemption for tangible personal property that is purchased by a developer who has been awarded a certificate of exemption by the Department of Commerce and Economic Opportunity and that is used to rehabilitate brownfield or grayfield property. Effective immediately. LRB104 08564 HLH 18616 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1178 Introduced 1/24/2025, by Sen. Michael W. Halpin SYNOPSIS AS INTRODUCED: 35 ILCS 5/246 new35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5 35 ILCS 5/246 new 35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5 Amends the Illinois Income Tax Act. Creates an income tax credit for developers that invest in a qualified project redeveloping a brownfield or grayfield. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Creates an exemption for tangible personal property that is purchased by a developer who has been awarded a certificate of exemption by the Department of Commerce and Economic Opportunity and that is used to rehabilitate brownfield or grayfield property. Effective immediately. LRB104 08564 HLH 18616 b LRB104 08564 HLH 18616 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1178 Introduced 1/24/2025, by Sen. Michael W. Halpin SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 5/246 new35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5 35 ILCS 5/246 new 35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5
4	4	35 ILCS 5/246 new
5	5	35 ILCS 105/3-5
6	6	35 ILCS 110/3-5
7	7	35 ILCS 115/3-5
8	8	35 ILCS 120/2-5
9	9	Amends the Illinois Income Tax Act. Creates an income tax credit for developers that invest in a qualified project redeveloping a brownfield or grayfield. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Creates an exemption for tangible personal property that is purchased by a developer who has been awarded a certificate of exemption by the Department of Commerce and Economic Opportunity and that is used to rehabilitate brownfield or grayfield property. Effective immediately.
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12	12	A BILL FOR
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15	15	1 AN ACT concerning revenue.
16	16	2 Be it enacted by the People of the State of Illinois,
17	17	3 represented in the General Assembly:
18	18	4 Section 5. The Illinois Income Tax Act is amended by
19	19	5 adding Section 246 as follows:
20	20	6 (35 ILCS 5/246 new)
21	21	7 Sec. 246. Brownfield and grayfield tax credit incentive
22	22	8 program.
23	23	9 (a) For taxable years ending on or after December 31, 2025
24	24	10 and ending on or before December 31, 2028, each taxpayer that
25	25	11 is a developer and that invests in a qualified project
26	26	12 redeveloping a brownfield or a grayfield may apply to the
27	27	13 Department to receive a credit against the taxes imposed by
28	28	14 subsections (a) and (b) of Section 201. If the redevelopment
29	29	15 is to a brownfield, the amount of the credit is equal to 10% of
30	30	16 up to $1,000,000 of the rehabilitation costs incurred by the
31	31	17 taxpayer after remediation has occurred. If the redevelopment
32	32	18 is to a grayfield, the amount of the credit is equal to 5% of
33	33	19 up to $1,000,000 of the rehabilitation costs incurred by the
34	34	20 taxpayer after remediation has occurred. The Department may
35	35	21 not issue more than $20,000,000 in credits under this Section
36	36	22 for taxable years ending on or after December 31, 2025 and
37	37	23 ending on or before December 31, 2028.
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41	41	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1178 Introduced 1/24/2025, by Sen. Michael W. Halpin SYNOPSIS AS INTRODUCED:
42	42	35 ILCS 5/246 new35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5 35 ILCS 5/246 new 35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5
43	43	35 ILCS 5/246 new
44	44	35 ILCS 105/3-5
45	45	35 ILCS 110/3-5
46	46	35 ILCS 115/3-5
47	47	35 ILCS 120/2-5
48	48	Amends the Illinois Income Tax Act. Creates an income tax credit for developers that invest in a qualified project redeveloping a brownfield or grayfield. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Creates an exemption for tangible personal property that is purchased by a developer who has been awarded a certificate of exemption by the Department of Commerce and Economic Opportunity and that is used to rehabilitate brownfield or grayfield property. Effective immediately.
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51	51	A BILL FOR
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57	57	35 ILCS 5/246 new
58	58	35 ILCS 105/3-5
59	59	35 ILCS 110/3-5
60	60	35 ILCS 115/3-5
61	61	35 ILCS 120/2-5
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80	80	1 (b) If a municipality or a county is the developer of the
81	81	2 project, then the Department shall award the municipality or
82	82	3 county the amount of the credit under this Section in the form
83	83	4 of a grant from the General Revenue Fund.
84	84	5 (c) In no event shall a credit under this Section reduce
85	85	6 the taxpayer's liability to less than zero. If the amount of
86	86	7 the credit exceeds the tax liability for the year, the excess
87	87	8 may be carried forward and applied to the tax liability of the
88	88	9 5 taxable years following the excess credit year. The tax
89	89	10 credit shall be applied to the earliest year for which there is
90	90	11 a tax liability. If there are credits for more than one year
91	91	12 that are available to offset a liability, the earlier credit
92	92	13 shall be applied first.
93	93	14 (d) If the taxpayer is a partnership or Subchapter S
94	94	15 corporation, the credit is allowed to pass through to the
95	95	16 partners and shareholders as provided in Section 251. Credits
96	96	17 may also be transferred during the 5 taxable years after the
97	97	18 taxable year in which the credit is claimed.
98	98	19 (e) The Department shall determine whether a project
99	99	20 qualifies for the credit under this Section. The criteria that
100	100	21 shall be used in making that determination are:
101	101	22 (1) the total amount of the developer's investment in
102	102	23 the project;
103	103	24 (2) the number of projected jobs or housing units
104	104	25 created by the project;
105	105	26 (3) the community impact of the planned
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116	116	1 revitalization; and
117	117	2 (4) the cost-efficiency of the project.
118	118	3 In addition, the Department shall give enhanced
119	119	4 consideration to projects that provide middle-income housing
120	120	5 as part of the project.
121	121	6 Receipt of other credits or incentives shall not count
122	122	7 against applicants when determining qualifying projects.
123	123	8 (f) The Department shall adopt rules to implement and
124	124	9 administer this Section, including rules concerning
125	125	10 applications for the tax credit. A taxpayer claiming the
126	126	11 credit provided by this Section must maintain and record any
127	127	12 information that the Department requires regarding the project
128	128	13 for which the credit is claimed.
129	129	14 (g) As used in this Section:
130	130	15 "Brownfield" means a former industrial or commercial site
131	131	16 where future use is affected by real or perceived
132	132	17 environmental contamination.
133	133	18 "Department" means the Department of Commerce and Economic
134	134	19 Opportunity.
135	135	20 "Developer" means a for-profit developer, a nonprofit
136	136	21 developer, a land bank, a municipality, or a county.
137	137	22 "Grayfield" means commercial buildings that have been
138	138	23 vacant for a minimum of 12 consecutive months. "Grayfield"
139	139	24 includes vacant shopping malls and surrounding parking lots.
140	140	25 "Household" means all persons using the premises as their
141	141	26 principal place of residence upon the sale or lease of the
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152	152	1 middle-income housing by the developer.
153	153	2 "Household income" means the combined federal adjusted
154	154	3 gross income of the members of the household for the taxable
155	155	4 year immediately preceding the year in which the middle-income
156	156	5 housing is sold or rented to the members of the household.
157	157	6 "Middle-income housing" means housing that is sold or
158	158	7 rented to pursuant to a contract with a term of one year or
159	159	8 longer to one or more individuals with a combined household
160	160	9 income that exceeds 80% of the median household income in
161	161	10 Illinois but does not exceed 120% of the median household
162	162	11 income in Illinois.
163	163	12 Section 10. The Use Tax Act is amended by changing Section
164	164	13 3-5 as follows:
165	165	14 (35 ILCS 105/3-5)
166	166	15 Sec. 3-5. Exemptions. Use, which, on and after January 1,
167	167	16 2025, includes use by a lessee, of the following tangible
168	168	17 personal property is exempt from the tax imposed by this Act:
169	169	18 (1) Personal property purchased from a corporation,
170	170	19 society, association, foundation, institution, or
171	171	20 organization, other than a limited liability company, that is
172	172	21 organized and operated as a not-for-profit service enterprise
173	173	22 for the benefit of persons 65 years of age or older if the
174	174	23 personal property was not purchased by the enterprise for the
175	175	24 purpose of resale by the enterprise.
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186	186	1 (2) Personal property purchased by a not-for-profit
187	187	2 Illinois county fair association for use in conducting,
188	188	3 operating, or promoting the county fair.
189	189	4 (3) Personal property purchased by a not-for-profit arts
190	190	5 or cultural organization that establishes, by proof required
191	191	6 by the Department by rule, that it has received an exemption
192	192	7 under Section 501(c)(3) of the Internal Revenue Code and that
193	193	8 is organized and operated primarily for the presentation or
194	194	9 support of arts or cultural programming, activities, or
195	195	10 services. These organizations include, but are not limited to,
196	196	11 music and dramatic arts organizations such as symphony
197	197	12 orchestras and theatrical groups, arts and cultural service
198	198	13 organizations, local arts councils, visual arts organizations,
199	199	14 and media arts organizations. On and after July 1, 2001 (the
200	200	15 effective date of Public Act 92-35), however, an entity
201	201	16 otherwise eligible for this exemption shall not make tax-free
202	202	17 purchases unless it has an active identification number issued
203	203	18 by the Department.
204	204	19 (4) Except as otherwise provided in this Act, personal
205	205	20 property purchased by a governmental body, by a corporation,
206	206	21 society, association, foundation, or institution organized and
207	207	22 operated exclusively for charitable, religious, or educational
208	208	23 purposes, or by a not-for-profit corporation, society,
209	209	24 association, foundation, institution, or organization that has
210	210	25 no compensated officers or employees and that is organized and
211	211	26 operated primarily for the recreation of persons 55 years of
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222	222	1 age or older. A limited liability company may qualify for the
223	223	2 exemption under this paragraph only if the limited liability
224	224	3 company is organized and operated exclusively for educational
225	225	4 purposes. On and after July 1, 1987, however, no entity
226	226	5 otherwise eligible for this exemption shall make tax-free
227	227	6 purchases unless it has an active exemption identification
228	228	7 number issued by the Department.
229	229	8 (5) Until July 1, 2003, a passenger car that is a
230	230	9 replacement vehicle to the extent that the purchase price of
231	231	10 the car is subject to the Replacement Vehicle Tax.
232	232	11 (6) Until July 1, 2003 and beginning again on September 1,
233	233	12 2004 through August 30, 2014, graphic arts machinery and
234	234	13 equipment, including repair and replacement parts, both new
235	235	14 and used, and including that manufactured on special order,
236	236	15 certified by the purchaser to be used primarily for graphic
237	237	16 arts production, and including machinery and equipment
238	238	17 purchased for lease. Equipment includes chemicals or chemicals
239	239	18 acting as catalysts but only if the chemicals or chemicals
240	240	19 acting as catalysts effect a direct and immediate change upon
241	241	20 a graphic arts product. Beginning on July 1, 2017, graphic
242	242	21 arts machinery and equipment is included in the manufacturing
243	243	22 and assembling machinery and equipment exemption under
244	244	23 paragraph (18).
245	245	24 (7) Farm chemicals.
246	246	25 (8) Legal tender, currency, medallions, or gold or silver
247	247	26 coinage issued by the State of Illinois, the government of the
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258	258	1 United States of America, or the government of any foreign
259	259	2 country, and bullion.
260	260	3 (9) Personal property purchased from a teacher-sponsored
261	261	4 student organization affiliated with an elementary or
262	262	5 secondary school located in Illinois.
263	263	6 (10) A motor vehicle that is used for automobile renting,
264	264	7 as defined in the Automobile Renting Occupation and Use Tax
265	265	8 Act.
266	266	9 (11) Farm machinery and equipment, both new and used,
267	267	10 including that manufactured on special order, certified by the
268	268	11 purchaser to be used primarily for production agriculture or
269	269	12 State or federal agricultural programs, including individual
270	270	13 replacement parts for the machinery and equipment, including
271	271	14 machinery and equipment purchased for lease, and including
272	272	15 implements of husbandry defined in Section 1-130 of the
273	273	16 Illinois Vehicle Code, farm machinery and agricultural
274	274	17 chemical and fertilizer spreaders, and nurse wagons required
275	275	18 to be registered under Section 3-809 of the Illinois Vehicle
276	276	19 Code, but excluding other motor vehicles required to be
277	277	20 registered under the Illinois Vehicle Code. Horticultural
278	278	21 polyhouses or hoop houses used for propagating, growing, or
279	279	22 overwintering plants shall be considered farm machinery and
280	280	23 equipment under this item (11). Agricultural chemical tender
281	281	24 tanks and dry boxes shall include units sold separately from a
282	282	25 motor vehicle required to be licensed and units sold mounted
283	283	26 on a motor vehicle required to be licensed if the selling price
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294	294	1 of the tender is separately stated.
295	295	2 Farm machinery and equipment shall include precision
296	296	3 farming equipment that is installed or purchased to be
297	297	4 installed on farm machinery and equipment, including, but not
298	298	5 limited to, tractors, harvesters, sprayers, planters, seeders,
299	299	6 or spreaders. Precision farming equipment includes, but is not
300	300	7 limited to, soil testing sensors, computers, monitors,
301	301	8 software, global positioning and mapping systems, and other
302	302	9 such equipment.
303	303	10 Farm machinery and equipment also includes computers,
304	304	11 sensors, software, and related equipment used primarily in the
305	305	12 computer-assisted operation of production agriculture
306	306	13 facilities, equipment, and activities such as, but not limited
307	307	14 to, the collection, monitoring, and correlation of animal and
308	308	15 crop data for the purpose of formulating animal diets and
309	309	16 agricultural chemicals.
310	310	17 Beginning on January 1, 2024, farm machinery and equipment
311	311	18 also includes electrical power generation equipment used
312	312	19 primarily for production agriculture.
313	313	20 This item (11) is exempt from the provisions of Section
314	314	21 3-90.
315	315	22 (12) Until June 30, 2013, fuel and petroleum products sold
316	316	23 to or used by an air common carrier, certified by the carrier
317	317	24 to be used for consumption, shipment, or storage in the
318	318	25 conduct of its business as an air common carrier, for a flight
319	319	26 destined for or returning from a location or locations outside
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330	330	1 the United States without regard to previous or subsequent
331	331	2 domestic stopovers.
332	332	3 Beginning July 1, 2013, fuel and petroleum products sold
333	333	4 to or used by an air carrier, certified by the carrier to be
334	334	5 used for consumption, shipment, or storage in the conduct of
335	335	6 its business as an air common carrier, for a flight that (i) is
336	336	7 engaged in foreign trade or is engaged in trade between the
337	337	8 United States and any of its possessions and (ii) transports
338	338	9 at least one individual or package for hire from the city of
339	339	10 origination to the city of final destination on the same
340	340	11 aircraft, without regard to a change in the flight number of
341	341	12 that aircraft.
342	342	13 (13) Proceeds of mandatory service charges separately
343	343	14 stated on customers' bills for the purchase and consumption of
344	344	15 food and beverages purchased at retail from a retailer, to the
345	345	16 extent that the proceeds of the service charge are in fact
346	346	17 turned over as tips or as a substitute for tips to the
347	347	18 employees who participate directly in preparing, serving,
348	348	19 hosting or cleaning up the food or beverage function with
349	349	20 respect to which the service charge is imposed.
350	350	21 (14) Until July 1, 2003, oil field exploration, drilling,
351	351	22 and production equipment, including (i) rigs and parts of
352	352	23 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
353	353	24 pipe and tubular goods, including casing and drill strings,
354	354	25 (iii) pumps and pump-jack units, (iv) storage tanks and flow
355	355	26 lines, (v) any individual replacement part for oil field
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366	366	1 exploration, drilling, and production equipment, and (vi)
367	367	2 machinery and equipment purchased for lease; but excluding
368	368	3 motor vehicles required to be registered under the Illinois
369	369	4 Vehicle Code.
370	370	5 (15) Photoprocessing machinery and equipment, including
371	371	6 repair and replacement parts, both new and used, including
372	372	7 that manufactured on special order, certified by the purchaser
373	373	8 to be used primarily for photoprocessing, and including
374	374	9 photoprocessing machinery and equipment purchased for lease.
375	375	10 (16) Until July 1, 2028, coal and aggregate exploration,
376	376	11 mining, off-highway hauling, processing, maintenance, and
377	377	12 reclamation equipment, including replacement parts and
378	378	13 equipment, and including equipment purchased for lease, but
379	379	14 excluding motor vehicles required to be registered under the
380	380	15 Illinois Vehicle Code. The changes made to this Section by
381	381	16 Public Act 97-767 apply on and after July 1, 2003, but no claim
382	382	17 for credit or refund is allowed on or after August 16, 2013
383	383	18 (the effective date of Public Act 98-456) for such taxes paid
384	384	19 during the period beginning July 1, 2003 and ending on August
385	385	20 16, 2013 (the effective date of Public Act 98-456).
386	386	21 (17) Until July 1, 2003, distillation machinery and
387	387	22 equipment, sold as a unit or kit, assembled or installed by the
388	388	23 retailer, certified by the user to be used only for the
389	389	24 production of ethyl alcohol that will be used for consumption
390	390	25 as motor fuel or as a component of motor fuel for the personal
391	391	26 use of the user, and not subject to sale or resale.
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402	402	1 (18) Manufacturing and assembling machinery and equipment
403	403	2 used primarily in the process of manufacturing or assembling
404	404	3 tangible personal property for wholesale or retail sale or
405	405	4 lease, whether that sale or lease is made directly by the
406	406	5 manufacturer or by some other person, whether the materials
407	407	6 used in the process are owned by the manufacturer or some other
408	408	7 person, or whether that sale or lease is made apart from or as
409	409	8 an incident to the seller's engaging in the service occupation
410	410	9 of producing machines, tools, dies, jigs, patterns, gauges, or
411	411	10 other similar items of no commercial value on special order
412	412	11 for a particular purchaser. The exemption provided by this
413	413	12 paragraph (18) includes production related tangible personal
414	414	13 property, as defined in Section 3-50, purchased on or after
415	415	14 July 1, 2019. The exemption provided by this paragraph (18)
416	416	15 does not include machinery and equipment used in (i) the
417	417	16 generation of electricity for wholesale or retail sale; (ii)
418	418	17 the generation or treatment of natural or artificial gas for
419	419	18 wholesale or retail sale that is delivered to customers
420	420	19 through pipes, pipelines, or mains; or (iii) the treatment of
421	421	20 water for wholesale or retail sale that is delivered to
422	422	21 customers through pipes, pipelines, or mains. The provisions
423	423	22 of Public Act 98-583 are declaratory of existing law as to the
424	424	23 meaning and scope of this exemption. Beginning on July 1,
425	425	24 2017, the exemption provided by this paragraph (18) includes,
426	426	25 but is not limited to, graphic arts machinery and equipment,
427	427	26 as defined in paragraph (6) of this Section.
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438	438	1 (19) Personal property delivered to a purchaser or
439	439	2 purchaser's donee inside Illinois when the purchase order for
440	440	3 that personal property was received by a florist located
441	441	4 outside Illinois who has a florist located inside Illinois
442	442	5 deliver the personal property.
443	443	6 (20) Semen used for artificial insemination of livestock
444	444	7 for direct agricultural production.
445	445	8 (21) Horses, or interests in horses, registered with and
446	446	9 meeting the requirements of any of the Arabian Horse Club
447	447	10 Registry of America, Appaloosa Horse Club, American Quarter
448	448	11 Horse Association, United States Trotting Association, or
449	449	12 Jockey Club, as appropriate, used for purposes of breeding or
450	450	13 racing for prizes. This item (21) is exempt from the
451	451	14 provisions of Section 3-90, and the exemption provided for
452	452	15 under this item (21) applies for all periods beginning May 30,
453	453	16 1995, but no claim for credit or refund is allowed on or after
454	454	17 January 1, 2008 for such taxes paid during the period
455	455	18 beginning May 30, 2000 and ending on January 1, 2008.
456	456	19 (22) Computers and communications equipment utilized for
457	457	20 any hospital purpose and equipment used in the diagnosis,
458	458	21 analysis, or treatment of hospital patients purchased by a
459	459	22 lessor who leases the equipment, under a lease of one year or
460	460	23 longer executed or in effect at the time the lessor would
461	461	24 otherwise be subject to the tax imposed by this Act, to a
462	462	25 hospital that has been issued an active tax exemption
463	463	26 identification number by the Department under Section 1g of
464	464
465	465
466	466
467	467
468	468
469	469	SB1178 - 12 - LRB104 08564 HLH 18616 b
470	470
471	471
472	472	SB1178- 13 -LRB104 08564 HLH 18616 b SB1178 - 13 - LRB104 08564 HLH 18616 b
473	473	SB1178 - 13 - LRB104 08564 HLH 18616 b
474	474	1 the Retailers' Occupation Tax Act. If the equipment is leased
475	475	2 in a manner that does not qualify for this exemption or is used
476	476	3 in any other non-exempt manner, the lessor shall be liable for
477	477	4 the tax imposed under this Act or the Service Use Tax Act, as
478	478	5 the case may be, based on the fair market value of the property
479	479	6 at the time the non-qualifying use occurs. No lessor shall
480	480	7 collect or attempt to collect an amount (however designated)
481	481	8 that purports to reimburse that lessor for the tax imposed by
482	482	9 this Act or the Service Use Tax Act, as the case may be, if the
483	483	10 tax has not been paid by the lessor. If a lessor improperly
484	484	11 collects any such amount from the lessee, the lessee shall
485	485	12 have a legal right to claim a refund of that amount from the
486	486	13 lessor. If, however, that amount is not refunded to the lessee
487	487	14 for any reason, the lessor is liable to pay that amount to the
488	488	15 Department.
489	489	16 (23) Personal property purchased by a lessor who leases
490	490	17 the property, under a lease of one year or longer executed or
491	491	18 in effect at the time the lessor would otherwise be subject to
492	492	19 the tax imposed by this Act, to a governmental body that has
493	493	20 been issued an active sales tax exemption identification
494	494	21 number by the Department under Section 1g of the Retailers'
495	495	22 Occupation Tax Act. If the property is leased in a manner that
496	496	23 does not qualify for this exemption or used in any other
497	497	24 non-exempt manner, the lessor shall be liable for the tax
498	498	25 imposed under this Act or the Service Use Tax Act, as the case
499	499	26 may be, based on the fair market value of the property at the
500	500
501	501
502	502
503	503
504	504
505	505	SB1178 - 13 - LRB104 08564 HLH 18616 b
506	506
507	507
508	508	SB1178- 14 -LRB104 08564 HLH 18616 b SB1178 - 14 - LRB104 08564 HLH 18616 b
509	509	SB1178 - 14 - LRB104 08564 HLH 18616 b
510	510	1 time the non-qualifying use occurs. No lessor shall collect or
511	511	2 attempt to collect an amount (however designated) that
512	512	3 purports to reimburse that lessor for the tax imposed by this
513	513	4 Act or the Service Use Tax Act, as the case may be, if the tax
514	514	5 has not been paid by the lessor. If a lessor improperly
515	515	6 collects any such amount from the lessee, the lessee shall
516	516	7 have a legal right to claim a refund of that amount from the
517	517	8 lessor. If, however, that amount is not refunded to the lessee
518	518	9 for any reason, the lessor is liable to pay that amount to the
519	519	10 Department.
520	520	11 (24) Beginning with taxable years ending on or after
521	521	12 December 31, 1995 and ending with taxable years ending on or
522	522	13 before December 31, 2004, personal property that is donated
523	523	14 for disaster relief to be used in a State or federally declared
524	524	15 disaster area in Illinois or bordering Illinois by a
525	525	16 manufacturer or retailer that is registered in this State to a
526	526	17 corporation, society, association, foundation, or institution
527	527	18 that has been issued a sales tax exemption identification
528	528	19 number by the Department that assists victims of the disaster
529	529	20 who reside within the declared disaster area.
530	530	21 (25) Beginning with taxable years ending on or after
531	531	22 December 31, 1995 and ending with taxable years ending on or
532	532	23 before December 31, 2004, personal property that is used in
533	533	24 the performance of infrastructure repairs in this State,
534	534	25 including, but not limited to, municipal roads and streets,
535	535	26 access roads, bridges, sidewalks, waste disposal systems,
536	536
537	537
538	538
539	539
540	540
541	541	SB1178 - 14 - LRB104 08564 HLH 18616 b
542	542
543	543
544	544	SB1178- 15 -LRB104 08564 HLH 18616 b SB1178 - 15 - LRB104 08564 HLH 18616 b
545	545	SB1178 - 15 - LRB104 08564 HLH 18616 b
546	546	1 water and sewer line extensions, water distribution and
547	547	2 purification facilities, storm water drainage and retention
548	548	3 facilities, and sewage treatment facilities, resulting from a
549	549	4 State or federally declared disaster in Illinois or bordering
550	550	5 Illinois when such repairs are initiated on facilities located
551	551	6 in the declared disaster area within 6 months after the
552	552	7 disaster.
553	553	8 (26) Beginning July 1, 1999, game or game birds purchased
554	554	9 at a "game breeding and hunting preserve area" as that term is
555	555	10 used in the Wildlife Code. This paragraph is exempt from the
556	556	11 provisions of Section 3-90.
557	557	12 (27) A motor vehicle, as that term is defined in Section
558	558	13 1-146 of the Illinois Vehicle Code, that is donated to a
559	559	14 corporation, limited liability company, society, association,
560	560	15 foundation, or institution that is determined by the
561	561	16 Department to be organized and operated exclusively for
562	562	17 educational purposes. For purposes of this exemption, "a
563	563	18 corporation, limited liability company, society, association,
564	564	19 foundation, or institution organized and operated exclusively
565	565	20 for educational purposes" means all tax-supported public
566	566	21 schools, private schools that offer systematic instruction in
567	567	22 useful branches of learning by methods common to public
568	568	23 schools and that compare favorably in their scope and
569	569	24 intensity with the course of study presented in tax-supported
570	570	25 schools, and vocational or technical schools or institutes
571	571	26 organized and operated exclusively to provide a course of
572	572
573	573
574	574
575	575
576	576
577	577	SB1178 - 15 - LRB104 08564 HLH 18616 b
578	578
579	579
580	580	SB1178- 16 -LRB104 08564 HLH 18616 b SB1178 - 16 - LRB104 08564 HLH 18616 b
581	581	SB1178 - 16 - LRB104 08564 HLH 18616 b
582	582	1 study of not less than 6 weeks duration and designed to prepare
583	583	2 individuals to follow a trade or to pursue a manual,
584	584	3 technical, mechanical, industrial, business, or commercial
585	585	4 occupation.
586	586	5 (28) Beginning January 1, 2000, personal property,
587	587	6 including food, purchased through fundraising events for the
588	588	7 benefit of a public or private elementary or secondary school,
589	589	8 a group of those schools, or one or more school districts if
590	590	9 the events are sponsored by an entity recognized by the school
591	591	10 district that consists primarily of volunteers and includes
592	592	11 parents and teachers of the school children. This paragraph
593	593	12 does not apply to fundraising events (i) for the benefit of
594	594	13 private home instruction or (ii) for which the fundraising
595	595	14 entity purchases the personal property sold at the events from
596	596	15 another individual or entity that sold the property for the
597	597	16 purpose of resale by the fundraising entity and that profits
598	598	17 from the sale to the fundraising entity. This paragraph is
599	599	18 exempt from the provisions of Section 3-90.
600	600	19 (29) Beginning January 1, 2000 and through December 31,
601	601	20 2001, new or used automatic vending machines that prepare and
602	602	21 serve hot food and beverages, including coffee, soup, and
603	603	22 other items, and replacement parts for these machines.
604	604	23 Beginning January 1, 2002 and through June 30, 2003, machines
605	605	24 and parts for machines used in commercial, coin-operated
606	606	25 amusement and vending business if a use or occupation tax is
607	607	26 paid on the gross receipts derived from the use of the
608	608
609	609
610	610
611	611
612	612
613	613	SB1178 - 16 - LRB104 08564 HLH 18616 b
614	614
615	615
616	616	SB1178- 17 -LRB104 08564 HLH 18616 b SB1178 - 17 - LRB104 08564 HLH 18616 b
617	617	SB1178 - 17 - LRB104 08564 HLH 18616 b
618	618	1 commercial, coin-operated amusement and vending machines. This
619	619	2 paragraph is exempt from the provisions of Section 3-90.
620	620	3 (30) Beginning January 1, 2001 and through June 30, 2016,
621	621	4 food for human consumption that is to be consumed off the
622	622	5 premises where it is sold (other than alcoholic beverages,
623	623	6 soft drinks, and food that has been prepared for immediate
624	624	7 consumption) and prescription and nonprescription medicines,
625	625	8 drugs, medical appliances, and insulin, urine testing
626	626	9 materials, syringes, and needles used by diabetics, for human
627	627	10 use, when purchased for use by a person receiving medical
628	628	11 assistance under Article V of the Illinois Public Aid Code who
629	629	12 resides in a licensed long-term care facility, as defined in
630	630	13 the Nursing Home Care Act, or in a licensed facility as defined
631	631	14 in the ID/DD Community Care Act, the MC/DD Act, or the
632	632	15 Specialized Mental Health Rehabilitation Act of 2013.
633	633	16 (31) Beginning on August 2, 2001 (the effective date of
634	634	17 Public Act 92-227), computers and communications equipment
635	635	18 utilized for any hospital purpose and equipment used in the
636	636	19 diagnosis, analysis, or treatment of hospital patients
637	637	20 purchased by a lessor who leases the equipment, under a lease
638	638	21 of one year or longer executed or in effect at the time the
639	639	22 lessor would otherwise be subject to the tax imposed by this
640	640	23 Act, to a hospital that has been issued an active tax exemption
641	641	24 identification number by the Department under Section 1g of
642	642	25 the Retailers' Occupation Tax Act. If the equipment is leased
643	643	26 in a manner that does not qualify for this exemption or is used
644	644
645	645
646	646
647	647
648	648
649	649	SB1178 - 17 - LRB104 08564 HLH 18616 b
650	650
651	651
652	652	SB1178- 18 -LRB104 08564 HLH 18616 b SB1178 - 18 - LRB104 08564 HLH 18616 b
653	653	SB1178 - 18 - LRB104 08564 HLH 18616 b
654	654	1 in any other nonexempt manner, the lessor shall be liable for
655	655	2 the tax imposed under this Act or the Service Use Tax Act, as
656	656	3 the case may be, based on the fair market value of the property
657	657	4 at the time the nonqualifying use occurs. No lessor shall
658	658	5 collect or attempt to collect an amount (however designated)
659	659	6 that purports to reimburse that lessor for the tax imposed by
660	660	7 this Act or the Service Use Tax Act, as the case may be, if the
661	661	8 tax has not been paid by the lessor. If a lessor improperly
662	662	9 collects any such amount from the lessee, the lessee shall
663	663	10 have a legal right to claim a refund of that amount from the
664	664	11 lessor. If, however, that amount is not refunded to the lessee
665	665	12 for any reason, the lessor is liable to pay that amount to the
666	666	13 Department. This paragraph is exempt from the provisions of
667	667	14 Section 3-90.
668	668	15 (32) Beginning on August 2, 2001 (the effective date of
669	669	16 Public Act 92-227), personal property purchased by a lessor
670	670	17 who leases the property, under a lease of one year or longer
671	671	18 executed or in effect at the time the lessor would otherwise be
672	672	19 subject to the tax imposed by this Act, to a governmental body
673	673	20 that has been issued an active sales tax exemption
674	674	21 identification number by the Department under Section 1g of
675	675	22 the Retailers' Occupation Tax Act. If the property is leased
676	676	23 in a manner that does not qualify for this exemption or used in
677	677	24 any other nonexempt manner, the lessor shall be liable for the
678	678	25 tax imposed under this Act or the Service Use Tax Act, as the
679	679	26 case may be, based on the fair market value of the property at
680	680
681	681
682	682
683	683
684	684
685	685	SB1178 - 18 - LRB104 08564 HLH 18616 b
686	686
687	687
688	688	SB1178- 19 -LRB104 08564 HLH 18616 b SB1178 - 19 - LRB104 08564 HLH 18616 b
689	689	SB1178 - 19 - LRB104 08564 HLH 18616 b
690	690	1 the time the nonqualifying use occurs. No lessor shall collect
691	691	2 or attempt to collect an amount (however designated) that
692	692	3 purports to reimburse that lessor for the tax imposed by this
693	693	4 Act or the Service Use Tax Act, as the case may be, if the tax
694	694	5 has not been paid by the lessor. If a lessor improperly
695	695	6 collects any such amount from the lessee, the lessee shall
696	696	7 have a legal right to claim a refund of that amount from the
697	697	8 lessor. If, however, that amount is not refunded to the lessee
698	698	9 for any reason, the lessor is liable to pay that amount to the
699	699	10 Department. This paragraph is exempt from the provisions of
700	700	11 Section 3-90.
701	701	12 (33) On and after July 1, 2003 and through June 30, 2004,
702	702	13 the use in this State of motor vehicles of the second division
703	703	14 with a gross vehicle weight in excess of 8,000 pounds and that
704	704	15 are subject to the commercial distribution fee imposed under
705	705	16 Section 3-815.1 of the Illinois Vehicle Code. Beginning on
706	706	17 July 1, 2004 and through June 30, 2005, the use in this State
707	707	18 of motor vehicles of the second division: (i) with a gross
708	708	19 vehicle weight rating in excess of 8,000 pounds; (ii) that are
709	709	20 subject to the commercial distribution fee imposed under
710	710	21 Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
711	711	22 are primarily used for commercial purposes. Through June 30,
712	712	23 2005, this exemption applies to repair and replacement parts
713	713	24 added after the initial purchase of such a motor vehicle if
714	714	25 that motor vehicle is used in a manner that would qualify for
715	715	26 the rolling stock exemption otherwise provided for in this
716	716
717	717
718	718
719	719
720	720
721	721	SB1178 - 19 - LRB104 08564 HLH 18616 b
722	722
723	723
724	724	SB1178- 20 -LRB104 08564 HLH 18616 b SB1178 - 20 - LRB104 08564 HLH 18616 b
725	725	SB1178 - 20 - LRB104 08564 HLH 18616 b
726	726	1 Act. For purposes of this paragraph, the term "used for
727	727	2 commercial purposes" means the transportation of persons or
728	728	3 property in furtherance of any commercial or industrial
729	729	4 enterprise, whether for-hire or not.
730	730	5 (34) Beginning January 1, 2008, tangible personal property
731	731	6 used in the construction or maintenance of a community water
732	732	7 supply, as defined under Section 3.145 of the Environmental
733	733	8 Protection Act, that is operated by a not-for-profit
734	734	9 corporation that holds a valid water supply permit issued
735	735	10 under Title IV of the Environmental Protection Act. This
736	736	11 paragraph is exempt from the provisions of Section 3-90.
737	737	12 (35) Beginning January 1, 2010 and continuing through
738	738	13 December 31, 2029, materials, parts, equipment, components,
739	739	14 and furnishings incorporated into or upon an aircraft as part
740	740	15 of the modification, refurbishment, completion, replacement,
741	741	16 repair, or maintenance of the aircraft. This exemption
742	742	17 includes consumable supplies used in the modification,
743	743	18 refurbishment, completion, replacement, repair, and
744	744	19 maintenance of aircraft. However, until January 1, 2024, this
745	745	20 exemption excludes any materials, parts, equipment,
746	746	21 components, and consumable supplies used in the modification,
747	747	22 replacement, repair, and maintenance of aircraft engines or
748	748	23 power plants, whether such engines or power plants are
749	749	24 installed or uninstalled upon any such aircraft. "Consumable
750	750	25 supplies" include, but are not limited to, adhesive, tape,
751	751	26 sandpaper, general purpose lubricants, cleaning solution,
752	752
753	753
754	754
755	755
756	756
757	757	SB1178 - 20 - LRB104 08564 HLH 18616 b
758	758
759	759
760	760	SB1178- 21 -LRB104 08564 HLH 18616 b SB1178 - 21 - LRB104 08564 HLH 18616 b
761	761	SB1178 - 21 - LRB104 08564 HLH 18616 b
762	762	1 latex gloves, and protective films.
763	763	2 Beginning January 1, 2010 and continuing through December
764	764	3 31, 2023, this exemption applies only to the use of qualifying
765	765	4 tangible personal property by persons who modify, refurbish,
766	766	5 complete, repair, replace, or maintain aircraft and who (i)
767	767	6 hold an Air Agency Certificate and are empowered to operate an
768	768	7 approved repair station by the Federal Aviation
769	769	8 Administration, (ii) have a Class IV Rating, and (iii) conduct
770	770	9 operations in accordance with Part 145 of the Federal Aviation
771	771	10 Regulations. From January 1, 2024 through December 31, 2029,
772	772	11 this exemption applies only to the use of qualifying tangible
773	773	12 personal property by: (A) persons who modify, refurbish,
774	774	13 complete, repair, replace, or maintain aircraft and who (i)
775	775	14 hold an Air Agency Certificate and are empowered to operate an
776	776	15 approved repair station by the Federal Aviation
777	777	16 Administration, (ii) have a Class IV Rating, and (iii) conduct
778	778	17 operations in accordance with Part 145 of the Federal Aviation
779	779	18 Regulations; and (B) persons who engage in the modification,
780	780	19 replacement, repair, and maintenance of aircraft engines or
781	781	20 power plants without regard to whether or not those persons
782	782	21 meet the qualifications of item (A).
783	783	22 The exemption does not include aircraft operated by a
784	784	23 commercial air carrier providing scheduled passenger air
785	785	24 service pursuant to authority issued under Part 121 or Part
786	786	25 129 of the Federal Aviation Regulations. The changes made to
787	787	26 this paragraph (35) by Public Act 98-534 are declarative of
788	788
789	789
790	790
791	791
792	792
793	793	SB1178 - 21 - LRB104 08564 HLH 18616 b
794	794
795	795
796	796	SB1178- 22 -LRB104 08564 HLH 18616 b SB1178 - 22 - LRB104 08564 HLH 18616 b
797	797	SB1178 - 22 - LRB104 08564 HLH 18616 b
798	798	1 existing law. It is the intent of the General Assembly that the
799	799	2 exemption under this paragraph (35) applies continuously from
800	800	3 January 1, 2010 through December 31, 2024; however, no claim
801	801	4 for credit or refund is allowed for taxes paid as a result of
802	802	5 the disallowance of this exemption on or after January 1, 2015
803	803	6 and prior to February 5, 2020 (the effective date of Public Act
804	804	7 101-629).
805	805	8 (36) Tangible personal property purchased by a
806	806	9 public-facilities corporation, as described in Section
807	807	10 11-65-10 of the Illinois Municipal Code, for purposes of
808	808	11 constructing or furnishing a municipal convention hall, but
809	809	12 only if the legal title to the municipal convention hall is
810	810	13 transferred to the municipality without any further
811	811	14 consideration by or on behalf of the municipality at the time
812	812	15 of the completion of the municipal convention hall or upon the
813	813	16 retirement or redemption of any bonds or other debt
814	814	17 instruments issued by the public-facilities corporation in
815	815	18 connection with the development of the municipal convention
816	816	19 hall. This exemption includes existing public-facilities
817	817	20 corporations as provided in Section 11-65-25 of the Illinois
818	818	21 Municipal Code. This paragraph is exempt from the provisions
819	819	22 of Section 3-90.
820	820	23 (37) Beginning January 1, 2017 and through December 31,
821	821	24 2026, menstrual pads, tampons, and menstrual cups.
822	822	25 (38) Merchandise that is subject to the Rental Purchase
823	823	26 Agreement Occupation and Use Tax. The purchaser must certify
824	824
825	825
826	826
827	827
828	828
829	829	SB1178 - 22 - LRB104 08564 HLH 18616 b
830	830
831	831
832	832	SB1178- 23 -LRB104 08564 HLH 18616 b SB1178 - 23 - LRB104 08564 HLH 18616 b
833	833	SB1178 - 23 - LRB104 08564 HLH 18616 b
834	834	1 that the item is purchased to be rented subject to a
835	835	2 rental-purchase agreement, as defined in the Rental-Purchase
836	836	3 Agreement Act, and provide proof of registration under the
837	837	4 Rental Purchase Agreement Occupation and Use Tax Act. This
838	838	5 paragraph is exempt from the provisions of Section 3-90.
839	839	6 (39) Tangible personal property purchased by a purchaser
840	840	7 who is exempt from the tax imposed by this Act by operation of
841	841	8 federal law. This paragraph is exempt from the provisions of
842	842	9 Section 3-90.
843	843	10 (40) Qualified tangible personal property used in the
844	844	11 construction or operation of a data center that has been
845	845	12 granted a certificate of exemption by the Department of
846	846	13 Commerce and Economic Opportunity, whether that tangible
847	847	14 personal property is purchased by the owner, operator, or
848	848	15 tenant of the data center or by a contractor or subcontractor
849	849	16 of the owner, operator, or tenant. Data centers that would
850	850	17 have qualified for a certificate of exemption prior to January
851	851	18 1, 2020 had Public Act 101-31 been in effect may apply for and
852	852	19 obtain an exemption for subsequent purchases of computer
853	853	20 equipment or enabling software purchased or leased to upgrade,
854	854	21 supplement, or replace computer equipment or enabling software
855	855	22 purchased or leased in the original investment that would have
856	856	23 qualified.
857	857	24 The Department of Commerce and Economic Opportunity shall
858	858	25 grant a certificate of exemption under this item (40) to
859	859	26 qualified data centers as defined by Section 605-1025 of the
860	860
861	861
862	862
863	863
864	864
865	865	SB1178 - 23 - LRB104 08564 HLH 18616 b
866	866
867	867
868	868	SB1178- 24 -LRB104 08564 HLH 18616 b SB1178 - 24 - LRB104 08564 HLH 18616 b
869	869	SB1178 - 24 - LRB104 08564 HLH 18616 b
870	870	1 Department of Commerce and Economic Opportunity Law of the
871	871	2 Civil Administrative Code of Illinois.
872	872	3 For the purposes of this item (40):
873	873	4 "Data center" means a building or a series of
874	874	5 buildings rehabilitated or constructed to house working
875	875	6 servers in one physical location or multiple sites within
876	876	7 the State of Illinois.
877	877	8 "Qualified tangible personal property" means:
878	878	9 electrical systems and equipment; climate control and
879	879	10 chilling equipment and systems; mechanical systems and
880	880	11 equipment; monitoring and secure systems; emergency
881	881	12 generators; hardware; computers; servers; data storage
882	882	13 devices; network connectivity equipment; racks; cabinets;
883	883	14 telecommunications cabling infrastructure; raised floor
884	884	15 systems; peripheral components or systems; software;
885	885	16 mechanical, electrical, or plumbing systems; battery
886	886	17 systems; cooling systems and towers; temperature control
887	887	18 systems; other cabling; and other data center
888	888	19 infrastructure equipment and systems necessary to operate
889	889	20 qualified tangible personal property, including fixtures;
890	890	21 and component parts of any of the foregoing, including
891	891	22 installation, maintenance, repair, refurbishment, and
892	892	23 replacement of qualified tangible personal property to
893	893	24 generate, transform, transmit, distribute, or manage
894	894	25 electricity necessary to operate qualified tangible
895	895	26 personal property; and all other tangible personal
896	896
897	897
898	898
899	899
900	900
901	901	SB1178 - 24 - LRB104 08564 HLH 18616 b
902	902
903	903
904	904	SB1178- 25 -LRB104 08564 HLH 18616 b SB1178 - 25 - LRB104 08564 HLH 18616 b
905	905	SB1178 - 25 - LRB104 08564 HLH 18616 b
906	906	1 property that is essential to the operations of a computer
907	907	2 data center. The term "qualified tangible personal
908	908	3 property" also includes building materials physically
909	909	4 incorporated into the qualifying data center. To document
910	910	5 the exemption allowed under this Section, the retailer
911	911	6 must obtain from the purchaser a copy of the certificate
912	912	7 of eligibility issued by the Department of Commerce and
913	913	8 Economic Opportunity.
914	914	9 This item (40) is exempt from the provisions of Section
915	915	10 3-90.
916	916	11 (41) Beginning July 1, 2022, breast pumps, breast pump
917	917	12 collection and storage supplies, and breast pump kits. This
918	918	13 item (41) is exempt from the provisions of Section 3-90. As
919	919	14 used in this item (41):
920	920	15 "Breast pump" means an electrically controlled or
921	921	16 manually controlled pump device designed or marketed to be
922	922	17 used to express milk from a human breast during lactation,
923	923	18 including the pump device and any battery, AC adapter, or
924	924	19 other power supply unit that is used to power the pump
925	925	20 device and is packaged and sold with the pump device at the
926	926	21 time of sale.
927	927	22 "Breast pump collection and storage supplies" means
928	928	23 items of tangible personal property designed or marketed
929	929	24 to be used in conjunction with a breast pump to collect
930	930	25 milk expressed from a human breast and to store collected
931	931	26 milk until it is ready for consumption.
932	932
933	933
934	934
935	935
936	936
937	937	SB1178 - 25 - LRB104 08564 HLH 18616 b
938	938
939	939
940	940	SB1178- 26 -LRB104 08564 HLH 18616 b SB1178 - 26 - LRB104 08564 HLH 18616 b
941	941	SB1178 - 26 - LRB104 08564 HLH 18616 b
942	942	1 "Breast pump collection and storage supplies"
943	943	2 includes, but is not limited to: breast shields and breast
944	944	3 shield connectors; breast pump tubes and tubing adapters;
945	945	4 breast pump valves and membranes; backflow protectors and
946	946	5 backflow protector adaptors; bottles and bottle caps
947	947	6 specific to the operation of the breast pump; and breast
948	948	7 milk storage bags.
949	949	8 "Breast pump collection and storage supplies" does not
950	950	9 include: (1) bottles and bottle caps not specific to the
951	951	10 operation of the breast pump; (2) breast pump travel bags
952	952	11 and other similar carrying accessories, including ice
953	953	12 packs, labels, and other similar products; (3) breast pump
954	954	13 cleaning supplies; (4) nursing bras, bra pads, breast
955	955	14 shells, and other similar products; and (5) creams,
956	956	15 ointments, and other similar products that relieve
957	957	16 breastfeeding-related symptoms or conditions of the
958	958	17 breasts or nipples, unless sold as part of a breast pump
959	959	18 kit that is pre-packaged by the breast pump manufacturer
960	960	19 or distributor.
961	961	20 "Breast pump kit" means a kit that: (1) contains no
962	962	21 more than a breast pump, breast pump collection and
963	963	22 storage supplies, a rechargeable battery for operating the
964	964	23 breast pump, a breastmilk cooler, bottle stands, ice
965	965	24 packs, and a breast pump carrying case; and (2) is
966	966	25 pre-packaged as a breast pump kit by the breast pump
967	967	26 manufacturer or distributor.
968	968
969	969
970	970
971	971
972	972
973	973	SB1178 - 26 - LRB104 08564 HLH 18616 b
974	974
975	975
976	976	SB1178- 27 -LRB104 08564 HLH 18616 b SB1178 - 27 - LRB104 08564 HLH 18616 b
977	977	SB1178 - 27 - LRB104 08564 HLH 18616 b
978	978	1 (42) Tangible personal property sold by or on behalf of
979	979	2 the State Treasurer pursuant to the Revised Uniform Unclaimed
980	980	3 Property Act. This item (42) is exempt from the provisions of
981	981	4 Section 3-90.
982	982	5 (43) Beginning on January 1, 2024, tangible personal
983	983	6 property purchased by an active duty member of the armed
984	984	7 forces of the United States who presents valid military
985	985	8 identification and purchases the property using a form of
986	986	9 payment where the federal government is the payor. The member
987	987	10 of the armed forces must complete, at the point of sale, a form
988	988	11 prescribed by the Department of Revenue documenting that the
989	989	12 transaction is eligible for the exemption under this
990	990	13 paragraph. Retailers must keep the form as documentation of
991	991	14 the exemption in their records for a period of not less than 6
992	992	15 years. "Armed forces of the United States" means the United
993	993	16 States Army, Navy, Air Force, Space Force, Marine Corps, or
994	994	17 Coast Guard. This paragraph is exempt from the provisions of
995	995	18 Section 3-90.
996	996	19 (44) Beginning July 1, 2024, home-delivered meals provided
997	997	20 to Medicare or Medicaid recipients when payment is made by an
998	998	21 intermediary, such as a Medicare Administrative Contractor, a
999	999	22 Managed Care Organization, or a Medicare Advantage
1000	1000	23 Organization, pursuant to a government contract. This item
1001	1001	24 (44) is exempt from the provisions of Section 3-90.
1002	1002	25 (45) (44) Beginning on January 1, 2026, as further defined
1003	1003	26 in Section 3-10, food for human consumption that is to be
1004	1004
1005	1005
1006	1006
1007	1007
1008	1008
1009	1009	SB1178 - 27 - LRB104 08564 HLH 18616 b
1010	1010
1011	1011
1012	1012	SB1178- 28 -LRB104 08564 HLH 18616 b SB1178 - 28 - LRB104 08564 HLH 18616 b
1013	1013	SB1178 - 28 - LRB104 08564 HLH 18616 b
1014	1014	1 consumed off the premises where it is sold (other than
1015	1015	2 alcoholic beverages, food consisting of or infused with adult
1016	1016	3 use cannabis, soft drinks, candy, and food that has been
1017	1017	4 prepared for immediate consumption). This item (45) (44) is
1018	1018	5 exempt from the provisions of Section 3-90.
1019	1019	6 (46) (44) Use by the lessee of the following leased
1020	1020	7 tangible personal property:
1021	1021	8 (1) software transferred subject to a license that
1022	1022	9 meets the following requirements:
1023	1023	10 (A) it is evidenced by a written agreement signed
1024	1024	11 by the licensor and the customer;
1025	1025	12 (i) an electronic agreement in which the
1026	1026	13 customer accepts the license by means of an
1027	1027	14 electronic signature that is verifiable and can be
1028	1028	15 authenticated and is attached to or made part of
1029	1029	16 the license will comply with this requirement;
1030	1030	17 (ii) a license agreement in which the customer
1031	1031	18 electronically accepts the terms by clicking "I
1032	1032	19 agree" does not comply with this requirement;
1033	1033	20 (B) it restricts the customer's duplication and
1034	1034	21 use of the software;
1035	1035	22 (C) it prohibits the customer from licensing,
1036	1036	23 sublicensing, or transferring the software to a third
1037	1037	24 party (except to a related party) without the
1038	1038	25 permission and continued control of the licensor;
1039	1039	26 (D) the licensor has a policy of providing another
1040	1040
1041	1041
1042	1042
1043	1043
1044	1044
1045	1045	SB1178 - 28 - LRB104 08564 HLH 18616 b
1046	1046
1047	1047
1048	1048	SB1178- 29 -LRB104 08564 HLH 18616 b SB1178 - 29 - LRB104 08564 HLH 18616 b
1049	1049	SB1178 - 29 - LRB104 08564 HLH 18616 b
1050	1050	1 copy at minimal or no charge if the customer loses or
1051	1051	2 damages the software, or of permitting the licensee to
1052	1052	3 make and keep an archival copy, and such policy is
1053	1053	4 either stated in the license agreement, supported by
1054	1054	5 the licensor's books and records, or supported by a
1055	1055	6 notarized statement made under penalties of perjury by
1056	1056	7 the licensor; and
1057	1057	8 (E) the customer must destroy or return all copies
1058	1058	9 of the software to the licensor at the end of the
1059	1059	10 license period; this provision is deemed to be met, in
1060	1060	11 the case of a perpetual license, without being set
1061	1061	12 forth in the license agreement; and
1062	1062	13 (2) property that is subject to a tax on lease
1063	1063	14 receipts imposed by a home rule unit of local government
1064	1064	15 if the ordinance imposing that tax was adopted prior to
1065	1065	16 January 1, 2023.
1066	1066	17 (47) Tangible personal property that is (i) purchased by a
1067	1067	18 developer who has been awarded a certificate of exemption
1068	1068	19 under this paragraph (47) by the Department of Commerce and
1069	1069	20 Economic Opportunity and (ii) used to rehabilitate brownfield
1070	1070	21 or grayfield property, as defined in Section 246 of the
1071	1071	22 Illinois Income Tax Act, after remediation has occurred. The
1072	1072	23 Department of Commerce and Economic Opportunity shall award
1073	1073	24 certificates of exemption under this paragraph (47) for
1074	1074	25 property that meets the criteria under this paragraph (47).
1075	1075	26 This paragraph is exempt from the provisions of Section 3-90.
1076	1076
1077	1077
1078	1078
1079	1079
1080	1080
1081	1081	SB1178 - 29 - LRB104 08564 HLH 18616 b
1082	1082
1083	1083
1084	1084	SB1178- 30 -LRB104 08564 HLH 18616 b SB1178 - 30 - LRB104 08564 HLH 18616 b
1085	1085	SB1178 - 30 - LRB104 08564 HLH 18616 b
1086	1086	1 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
1087	1087	2 Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
1088	1088	3 eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
1089	1089	4 Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
1090	1090	5 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
1091	1091	6 103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
1092	1092	7 7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; revised
1093	1093	8 11-26-24.)
1094	1094	9 Section 15. The Service Use Tax Act is amended by changing
1095	1095	10 Section 3-5 as follows:
1096	1096	11 (35 ILCS 110/3-5)
1097	1097	12 Sec. 3-5. Exemptions. Use of the following tangible
1098	1098	13 personal property is exempt from the tax imposed by this Act:
1099	1099	14 (1) Personal property purchased from a corporation,
1100	1100	15 society, association, foundation, institution, or
1101	1101	16 organization, other than a limited liability company, that is
1102	1102	17 organized and operated as a not-for-profit service enterprise
1103	1103	18 for the benefit of persons 65 years of age or older if the
1104	1104	19 personal property was not purchased by the enterprise for the
1105	1105	20 purpose of resale by the enterprise.
1106	1106	21 (2) Personal property purchased by a non-profit Illinois
1107	1107	22 county fair association for use in conducting, operating, or
1108	1108	23 promoting the county fair.
1109	1109	24 (3) Personal property purchased by a not-for-profit arts
1110	1110
1111	1111
1112	1112
1113	1113
1114	1114
1115	1115	SB1178 - 30 - LRB104 08564 HLH 18616 b
1116	1116
1117	1117
1118	1118	SB1178- 31 -LRB104 08564 HLH 18616 b SB1178 - 31 - LRB104 08564 HLH 18616 b
1119	1119	SB1178 - 31 - LRB104 08564 HLH 18616 b
1120	1120	1 or cultural organization that establishes, by proof required
1121	1121	2 by the Department by rule, that it has received an exemption
1122	1122	3 under Section 501(c)(3) of the Internal Revenue Code and that
1123	1123	4 is organized and operated primarily for the presentation or
1124	1124	5 support of arts or cultural programming, activities, or
1125	1125	6 services. These organizations include, but are not limited to,
1126	1126	7 music and dramatic arts organizations such as symphony
1127	1127	8 orchestras and theatrical groups, arts and cultural service
1128	1128	9 organizations, local arts councils, visual arts organizations,
1129	1129	10 and media arts organizations. On and after July 1, 2001 (the
1130	1130	11 effective date of Public Act 92-35), however, an entity
1131	1131	12 otherwise eligible for this exemption shall not make tax-free
1132	1132	13 purchases unless it has an active identification number issued
1133	1133	14 by the Department.
1134	1134	15 (4) Legal tender, currency, medallions, or gold or silver
1135	1135	16 coinage issued by the State of Illinois, the government of the
1136	1136	17 United States of America, or the government of any foreign
1137	1137	18 country, and bullion.
1138	1138	19 (5) Until July 1, 2003 and beginning again on September 1,
1139	1139	20 2004 through August 30, 2014, graphic arts machinery and
1140	1140	21 equipment, including repair and replacement parts, both new
1141	1141	22 and used, and including that manufactured on special order or
1142	1142	23 purchased for lease, certified by the purchaser to be used
1143	1143	24 primarily for graphic arts production. Equipment includes
1144	1144	25 chemicals or chemicals acting as catalysts but only if the
1145	1145	26 chemicals or chemicals acting as catalysts effect a direct and
1146	1146
1147	1147
1148	1148
1149	1149
1150	1150
1151	1151	SB1178 - 31 - LRB104 08564 HLH 18616 b
1152	1152
1153	1153
1154	1154	SB1178- 32 -LRB104 08564 HLH 18616 b SB1178 - 32 - LRB104 08564 HLH 18616 b
1155	1155	SB1178 - 32 - LRB104 08564 HLH 18616 b
1156	1156	1 immediate change upon a graphic arts product. Beginning on
1157	1157	2 July 1, 2017, graphic arts machinery and equipment is included
1158	1158	3 in the manufacturing and assembling machinery and equipment
1159	1159	4 exemption under Section 2 of this Act.
1160	1160	5 (6) Personal property purchased from a teacher-sponsored
1161	1161	6 student organization affiliated with an elementary or
1162	1162	7 secondary school located in Illinois.
1163	1163	8 (7) Farm machinery and equipment, both new and used,
1164	1164	9 including that manufactured on special order, certified by the
1165	1165	10 purchaser to be used primarily for production agriculture or
1166	1166	11 State or federal agricultural programs, including individual
1167	1167	12 replacement parts for the machinery and equipment, including
1168	1168	13 machinery and equipment purchased for lease, and including
1169	1169	14 implements of husbandry defined in Section 1-130 of the
1170	1170	15 Illinois Vehicle Code, farm machinery and agricultural
1171	1171	16 chemical and fertilizer spreaders, and nurse wagons required
1172	1172	17 to be registered under Section 3-809 of the Illinois Vehicle
1173	1173	18 Code, but excluding other motor vehicles required to be
1174	1174	19 registered under the Illinois Vehicle Code. Horticultural
1175	1175	20 polyhouses or hoop houses used for propagating, growing, or
1176	1176	21 overwintering plants shall be considered farm machinery and
1177	1177	22 equipment under this item (7). Agricultural chemical tender
1178	1178	23 tanks and dry boxes shall include units sold separately from a
1179	1179	24 motor vehicle required to be licensed and units sold mounted
1180	1180	25 on a motor vehicle required to be licensed if the selling price
1181	1181	26 of the tender is separately stated.
1182	1182
1183	1183
1184	1184
1185	1185
1186	1186
1187	1187	SB1178 - 32 - LRB104 08564 HLH 18616 b
1188	1188
1189	1189
1190	1190	SB1178- 33 -LRB104 08564 HLH 18616 b SB1178 - 33 - LRB104 08564 HLH 18616 b
1191	1191	SB1178 - 33 - LRB104 08564 HLH 18616 b
1192	1192	1 Farm machinery and equipment shall include precision
1193	1193	2 farming equipment that is installed or purchased to be
1194	1194	3 installed on farm machinery and equipment, including, but not
1195	1195	4 limited to, tractors, harvesters, sprayers, planters, seeders,
1196	1196	5 or spreaders. Precision farming equipment includes, but is not
1197	1197	6 limited to, soil testing sensors, computers, monitors,
1198	1198	7 software, global positioning and mapping systems, and other
1199	1199	8 such equipment.
1200	1200	9 Farm machinery and equipment also includes computers,
1201	1201	10 sensors, software, and related equipment used primarily in the
1202	1202	11 computer-assisted operation of production agriculture
1203	1203	12 facilities, equipment, and activities such as, but not limited
1204	1204	13 to, the collection, monitoring, and correlation of animal and
1205	1205	14 crop data for the purpose of formulating animal diets and
1206	1206	15 agricultural chemicals.
1207	1207	16 Beginning on January 1, 2024, farm machinery and equipment
1208	1208	17 also includes electrical power generation equipment used
1209	1209	18 primarily for production agriculture.
1210	1210	19 This item (7) is exempt from the provisions of Section
1211	1211	20 3-75.
1212	1212	21 (8) Until June 30, 2013, fuel and petroleum products sold
1213	1213	22 to or used by an air common carrier, certified by the carrier
1214	1214	23 to be used for consumption, shipment, or storage in the
1215	1215	24 conduct of its business as an air common carrier, for a flight
1216	1216	25 destined for or returning from a location or locations outside
1217	1217	26 the United States without regard to previous or subsequent
1218	1218
1219	1219
1220	1220
1221	1221
1222	1222
1223	1223	SB1178 - 33 - LRB104 08564 HLH 18616 b
1224	1224
1225	1225
1226	1226	SB1178- 34 -LRB104 08564 HLH 18616 b SB1178 - 34 - LRB104 08564 HLH 18616 b
1227	1227	SB1178 - 34 - LRB104 08564 HLH 18616 b
1228	1228	1 domestic stopovers.
1229	1229	2 Beginning July 1, 2013, fuel and petroleum products sold
1230	1230	3 to or used by an air carrier, certified by the carrier to be
1231	1231	4 used for consumption, shipment, or storage in the conduct of
1232	1232	5 its business as an air common carrier, for a flight that (i) is
1233	1233	6 engaged in foreign trade or is engaged in trade between the
1234	1234	7 United States and any of its possessions and (ii) transports
1235	1235	8 at least one individual or package for hire from the city of
1236	1236	9 origination to the city of final destination on the same
1237	1237	10 aircraft, without regard to a change in the flight number of
1238	1238	11 that aircraft.
1239	1239	12 (9) Proceeds of mandatory service charges separately
1240	1240	13 stated on customers' bills for the purchase and consumption of
1241	1241	14 food and beverages acquired as an incident to the purchase of a
1242	1242	15 service from a serviceman, to the extent that the proceeds of
1243	1243	16 the service charge are in fact turned over as tips or as a
1244	1244	17 substitute for tips to the employees who participate directly
1245	1245	18 in preparing, serving, hosting or cleaning up the food or
1246	1246	19 beverage function with respect to which the service charge is
1247	1247	20 imposed.
1248	1248	21 (10) Until July 1, 2003, oil field exploration, drilling,
1249	1249	22 and production equipment, including (i) rigs and parts of
1250	1250	23 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1251	1251	24 pipe and tubular goods, including casing and drill strings,
1252	1252	25 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1253	1253	26 lines, (v) any individual replacement part for oil field
1254	1254
1255	1255
1256	1256
1257	1257
1258	1258
1259	1259	SB1178 - 34 - LRB104 08564 HLH 18616 b
1260	1260
1261	1261
1262	1262	SB1178- 35 -LRB104 08564 HLH 18616 b SB1178 - 35 - LRB104 08564 HLH 18616 b
1263	1263	SB1178 - 35 - LRB104 08564 HLH 18616 b
1264	1264	1 exploration, drilling, and production equipment, and (vi)
1265	1265	2 machinery and equipment purchased for lease; but excluding
1266	1266	3 motor vehicles required to be registered under the Illinois
1267	1267	4 Vehicle Code.
1268	1268	5 (11) Proceeds from the sale of photoprocessing machinery
1269	1269	6 and equipment, including repair and replacement parts, both
1270	1270	7 new and used, including that manufactured on special order,
1271	1271	8 certified by the purchaser to be used primarily for
1272	1272	9 photoprocessing, and including photoprocessing machinery and
1273	1273	10 equipment purchased for lease.
1274	1274	11 (12) Until July 1, 2028, coal and aggregate exploration,
1275	1275	12 mining, off-highway hauling, processing, maintenance, and
1276	1276	13 reclamation equipment, including replacement parts and
1277	1277	14 equipment, and including equipment purchased for lease, but
1278	1278	15 excluding motor vehicles required to be registered under the
1279	1279	16 Illinois Vehicle Code. The changes made to this Section by
1280	1280	17 Public Act 97-767 apply on and after July 1, 2003, but no claim
1281	1281	18 for credit or refund is allowed on or after August 16, 2013
1282	1282	19 (the effective date of Public Act 98-456) for such taxes paid
1283	1283	20 during the period beginning July 1, 2003 and ending on August
1284	1284	21 16, 2013 (the effective date of Public Act 98-456).
1285	1285	22 (13) Semen used for artificial insemination of livestock
1286	1286	23 for direct agricultural production.
1287	1287	24 (14) Horses, or interests in horses, registered with and
1288	1288	25 meeting the requirements of any of the Arabian Horse Club
1289	1289	26 Registry of America, Appaloosa Horse Club, American Quarter
1290	1290
1291	1291
1292	1292
1293	1293
1294	1294
1295	1295	SB1178 - 35 - LRB104 08564 HLH 18616 b
1296	1296
1297	1297
1298	1298	SB1178- 36 -LRB104 08564 HLH 18616 b SB1178 - 36 - LRB104 08564 HLH 18616 b
1299	1299	SB1178 - 36 - LRB104 08564 HLH 18616 b
1300	1300	1 Horse Association, United States Trotting Association, or
1301	1301	2 Jockey Club, as appropriate, used for purposes of breeding or
1302	1302	3 racing for prizes. This item (14) is exempt from the
1303	1303	4 provisions of Section 3-75, and the exemption provided for
1304	1304	5 under this item (14) applies for all periods beginning May 30,
1305	1305	6 1995, but no claim for credit or refund is allowed on or after
1306	1306	7 January 1, 2008 (the effective date of Public Act 95-88) for
1307	1307	8 such taxes paid during the period beginning May 30, 2000 and
1308	1308	9 ending on January 1, 2008 (the effective date of Public Act
1309	1309	10 95-88).
1310	1310	11 (15) Computers and communications equipment utilized for
1311	1311	12 any hospital purpose and equipment used in the diagnosis,
1312	1312	13 analysis, or treatment of hospital patients purchased by a
1313	1313	14 lessor who leases the equipment, under a lease of one year or
1314	1314	15 longer executed or in effect at the time the lessor would
1315	1315	16 otherwise be subject to the tax imposed by this Act, to a
1316	1316	17 hospital that has been issued an active tax exemption
1317	1317	18 identification number by the Department under Section 1g of
1318	1318	19 the Retailers' Occupation Tax Act. If the equipment is leased
1319	1319	20 in a manner that does not qualify for this exemption or is used
1320	1320	21 in any other non-exempt manner, the lessor shall be liable for
1321	1321	22 the tax imposed under this Act or the Use Tax Act, as the case
1322	1322	23 may be, based on the fair market value of the property at the
1323	1323	24 time the non-qualifying use occurs. No lessor shall collect or
1324	1324	25 attempt to collect an amount (however designated) that
1325	1325	26 purports to reimburse that lessor for the tax imposed by this
1326	1326
1327	1327
1328	1328
1329	1329
1330	1330
1331	1331	SB1178 - 36 - LRB104 08564 HLH 18616 b
1332	1332
1333	1333
1334	1334	SB1178- 37 -LRB104 08564 HLH 18616 b SB1178 - 37 - LRB104 08564 HLH 18616 b
1335	1335	SB1178 - 37 - LRB104 08564 HLH 18616 b
1336	1336	1 Act or the Use Tax Act, as the case may be, if the tax has not
1337	1337	2 been paid by the lessor. If a lessor improperly collects any
1338	1338	3 such amount from the lessee, the lessee shall have a legal
1339	1339	4 right to claim a refund of that amount from the lessor. If,
1340	1340	5 however, that amount is not refunded to the lessee for any
1341	1341	6 reason, the lessor is liable to pay that amount to the
1342	1342	7 Department.
1343	1343	8 (16) Personal property purchased by a lessor who leases
1344	1344	9 the property, under a lease of one year or longer executed or
1345	1345	10 in effect at the time the lessor would otherwise be subject to
1346	1346	11 the tax imposed by this Act, to a governmental body that has
1347	1347	12 been issued an active tax exemption identification number by
1348	1348	13 the Department under Section 1g of the Retailers' Occupation
1349	1349	14 Tax Act. If the property is leased in a manner that does not
1350	1350	15 qualify for this exemption or is used in any other non-exempt
1351	1351	16 manner, the lessor shall be liable for the tax imposed under
1352	1352	17 this Act or the Use Tax Act, as the case may be, based on the
1353	1353	18 fair market value of the property at the time the
1354	1354	19 non-qualifying use occurs. No lessor shall collect or attempt
1355	1355	20 to collect an amount (however designated) that purports to
1356	1356	21 reimburse that lessor for the tax imposed by this Act or the
1357	1357	22 Use Tax Act, as the case may be, if the tax has not been paid
1358	1358	23 by the lessor. If a lessor improperly collects any such amount
1359	1359	24 from the lessee, the lessee shall have a legal right to claim a
1360	1360	25 refund of that amount from the lessor. If, however, that
1361	1361	26 amount is not refunded to the lessee for any reason, the lessor
1362	1362
1363	1363
1364	1364
1365	1365
1366	1366
1367	1367	SB1178 - 37 - LRB104 08564 HLH 18616 b
1368	1368
1369	1369
1370	1370	SB1178- 38 -LRB104 08564 HLH 18616 b SB1178 - 38 - LRB104 08564 HLH 18616 b
1371	1371	SB1178 - 38 - LRB104 08564 HLH 18616 b
1372	1372	1 is liable to pay that amount to the Department.
1373	1373	2 (17) Beginning with taxable years ending on or after
1374	1374	3 December 31, 1995 and ending with taxable years ending on or
1375	1375	4 before December 31, 2004, personal property that is donated
1376	1376	5 for disaster relief to be used in a State or federally declared
1377	1377	6 disaster area in Illinois or bordering Illinois by a
1378	1378	7 manufacturer or retailer that is registered in this State to a
1379	1379	8 corporation, society, association, foundation, or institution
1380	1380	9 that has been issued a sales tax exemption identification
1381	1381	10 number by the Department that assists victims of the disaster
1382	1382	11 who reside within the declared disaster area.
1383	1383	12 (18) Beginning with taxable years ending on or after
1384	1384	13 December 31, 1995 and ending with taxable years ending on or
1385	1385	14 before December 31, 2004, personal property that is used in
1386	1386	15 the performance of infrastructure repairs in this State,
1387	1387	16 including, but not limited to, municipal roads and streets,
1388	1388	17 access roads, bridges, sidewalks, waste disposal systems,
1389	1389	18 water and sewer line extensions, water distribution and
1390	1390	19 purification facilities, storm water drainage and retention
1391	1391	20 facilities, and sewage treatment facilities, resulting from a
1392	1392	21 State or federally declared disaster in Illinois or bordering
1393	1393	22 Illinois when such repairs are initiated on facilities located
1394	1394	23 in the declared disaster area within 6 months after the
1395	1395	24 disaster.
1396	1396	25 (19) Beginning July 1, 1999, game or game birds purchased
1397	1397	26 at a "game breeding and hunting preserve area" as that term is
1398	1398
1399	1399
1400	1400
1401	1401
1402	1402
1403	1403	SB1178 - 38 - LRB104 08564 HLH 18616 b
1404	1404
1405	1405
1406	1406	SB1178- 39 -LRB104 08564 HLH 18616 b SB1178 - 39 - LRB104 08564 HLH 18616 b
1407	1407	SB1178 - 39 - LRB104 08564 HLH 18616 b
1408	1408	1 used in the Wildlife Code. This paragraph is exempt from the
1409	1409	2 provisions of Section 3-75.
1410	1410	3 (20) A motor vehicle, as that term is defined in Section
1411	1411	4 1-146 of the Illinois Vehicle Code, that is donated to a
1412	1412	5 corporation, limited liability company, society, association,
1413	1413	6 foundation, or institution that is determined by the
1414	1414	7 Department to be organized and operated exclusively for
1415	1415	8 educational purposes. For purposes of this exemption, "a
1416	1416	9 corporation, limited liability company, society, association,
1417	1417	10 foundation, or institution organized and operated exclusively
1418	1418	11 for educational purposes" means all tax-supported public
1419	1419	12 schools, private schools that offer systematic instruction in
1420	1420	13 useful branches of learning by methods common to public
1421	1421	14 schools and that compare favorably in their scope and
1422	1422	15 intensity with the course of study presented in tax-supported
1423	1423	16 schools, and vocational or technical schools or institutes
1424	1424	17 organized and operated exclusively to provide a course of
1425	1425	18 study of not less than 6 weeks duration and designed to prepare
1426	1426	19 individuals to follow a trade or to pursue a manual,
1427	1427	20 technical, mechanical, industrial, business, or commercial
1428	1428	21 occupation.
1429	1429	22 (21) Beginning January 1, 2000, personal property,
1430	1430	23 including food, purchased through fundraising events for the
1431	1431	24 benefit of a public or private elementary or secondary school,
1432	1432	25 a group of those schools, or one or more school districts if
1433	1433	26 the events are sponsored by an entity recognized by the school
1434	1434
1435	1435
1436	1436
1437	1437
1438	1438
1439	1439	SB1178 - 39 - LRB104 08564 HLH 18616 b
1440	1440
1441	1441
1442	1442	SB1178- 40 -LRB104 08564 HLH 18616 b SB1178 - 40 - LRB104 08564 HLH 18616 b
1443	1443	SB1178 - 40 - LRB104 08564 HLH 18616 b
1444	1444	1 district that consists primarily of volunteers and includes
1445	1445	2 parents and teachers of the school children. This paragraph
1446	1446	3 does not apply to fundraising events (i) for the benefit of
1447	1447	4 private home instruction or (ii) for which the fundraising
1448	1448	5 entity purchases the personal property sold at the events from
1449	1449	6 another individual or entity that sold the property for the
1450	1450	7 purpose of resale by the fundraising entity and that profits
1451	1451	8 from the sale to the fundraising entity. This paragraph is
1452	1452	9 exempt from the provisions of Section 3-75.
1453	1453	10 (22) Beginning January 1, 2000 and through December 31,
1454	1454	11 2001, new or used automatic vending machines that prepare and
1455	1455	12 serve hot food and beverages, including coffee, soup, and
1456	1456	13 other items, and replacement parts for these machines.
1457	1457	14 Beginning January 1, 2002 and through June 30, 2003, machines
1458	1458	15 and parts for machines used in commercial, coin-operated
1459	1459	16 amusement and vending business if a use or occupation tax is
1460	1460	17 paid on the gross receipts derived from the use of the
1461	1461	18 commercial, coin-operated amusement and vending machines. This
1462	1462	19 paragraph is exempt from the provisions of Section 3-75.
1463	1463	20 (23) Beginning August 23, 2001 and through June 30, 2016,
1464	1464	21 food for human consumption that is to be consumed off the
1465	1465	22 premises where it is sold (other than alcoholic beverages,
1466	1466	23 soft drinks, and food that has been prepared for immediate
1467	1467	24 consumption) and prescription and nonprescription medicines,
1468	1468	25 drugs, medical appliances, and insulin, urine testing
1469	1469	26 materials, syringes, and needles used by diabetics, for human
1470	1470
1471	1471
1472	1472
1473	1473
1474	1474
1475	1475	SB1178 - 40 - LRB104 08564 HLH 18616 b
1476	1476
1477	1477
1478	1478	SB1178- 41 -LRB104 08564 HLH 18616 b SB1178 - 41 - LRB104 08564 HLH 18616 b
1479	1479	SB1178 - 41 - LRB104 08564 HLH 18616 b
1480	1480	1 use, when purchased for use by a person receiving medical
1481	1481	2 assistance under Article V of the Illinois Public Aid Code who
1482	1482	3 resides in a licensed long-term care facility, as defined in
1483	1483	4 the Nursing Home Care Act, or in a licensed facility as defined
1484	1484	5 in the ID/DD Community Care Act, the MC/DD Act, or the
1485	1485	6 Specialized Mental Health Rehabilitation Act of 2013.
1486	1486	7 (24) Beginning on August 2, 2001 (the effective date of
1487	1487	8 Public Act 92-227), computers and communications equipment
1488	1488	9 utilized for any hospital purpose and equipment used in the
1489	1489	10 diagnosis, analysis, or treatment of hospital patients
1490	1490	11 purchased by a lessor who leases the equipment, under a lease
1491	1491	12 of one year or longer executed or in effect at the time the
1492	1492	13 lessor would otherwise be subject to the tax imposed by this
1493	1493	14 Act, to a hospital that has been issued an active tax exemption
1494	1494	15 identification number by the Department under Section 1g of
1495	1495	16 the Retailers' Occupation Tax Act. If the equipment is leased
1496	1496	17 in a manner that does not qualify for this exemption or is used
1497	1497	18 in any other nonexempt manner, the lessor shall be liable for
1498	1498	19 the tax imposed under this Act or the Use Tax Act, as the case
1499	1499	20 may be, based on the fair market value of the property at the
1500	1500	21 time the nonqualifying use occurs. No lessor shall collect or
1501	1501	22 attempt to collect an amount (however designated) that
1502	1502	23 purports to reimburse that lessor for the tax imposed by this
1503	1503	24 Act or the Use Tax Act, as the case may be, if the tax has not
1504	1504	25 been paid by the lessor. If a lessor improperly collects any
1505	1505	26 such amount from the lessee, the lessee shall have a legal
1506	1506
1507	1507
1508	1508
1509	1509
1510	1510
1511	1511	SB1178 - 41 - LRB104 08564 HLH 18616 b
1512	1512
1513	1513
1514	1514	SB1178- 42 -LRB104 08564 HLH 18616 b SB1178 - 42 - LRB104 08564 HLH 18616 b
1515	1515	SB1178 - 42 - LRB104 08564 HLH 18616 b
1516	1516	1 right to claim a refund of that amount from the lessor. If,
1517	1517	2 however, that amount is not refunded to the lessee for any
1518	1518	3 reason, the lessor is liable to pay that amount to the
1519	1519	4 Department. This paragraph is exempt from the provisions of
1520	1520	5 Section 3-75.
1521	1521	6 (25) Beginning on August 2, 2001 (the effective date of
1522	1522	7 Public Act 92-227), personal property purchased by a lessor
1523	1523	8 who leases the property, under a lease of one year or longer
1524	1524	9 executed or in effect at the time the lessor would otherwise be
1525	1525	10 subject to the tax imposed by this Act, to a governmental body
1526	1526	11 that has been issued an active tax exemption identification
1527	1527	12 number by the Department under Section 1g of the Retailers'
1528	1528	13 Occupation Tax Act. If the property is leased in a manner that
1529	1529	14 does not qualify for this exemption or is used in any other
1530	1530	15 nonexempt manner, the lessor shall be liable for the tax
1531	1531	16 imposed under this Act or the Use Tax Act, as the case may be,
1532	1532	17 based on the fair market value of the property at the time the
1533	1533	18 nonqualifying use occurs. No lessor shall collect or attempt
1534	1534	19 to collect an amount (however designated) that purports to
1535	1535	20 reimburse that lessor for the tax imposed by this Act or the
1536	1536	21 Use Tax Act, as the case may be, if the tax has not been paid
1537	1537	22 by the lessor. If a lessor improperly collects any such amount
1538	1538	23 from the lessee, the lessee shall have a legal right to claim a
1539	1539	24 refund of that amount from the lessor. If, however, that
1540	1540	25 amount is not refunded to the lessee for any reason, the lessor
1541	1541	26 is liable to pay that amount to the Department. This paragraph
1542	1542
1543	1543
1544	1544
1545	1545
1546	1546
1547	1547	SB1178 - 42 - LRB104 08564 HLH 18616 b
1548	1548
1549	1549
1550	1550	SB1178- 43 -LRB104 08564 HLH 18616 b SB1178 - 43 - LRB104 08564 HLH 18616 b
1551	1551	SB1178 - 43 - LRB104 08564 HLH 18616 b
1552	1552	1 is exempt from the provisions of Section 3-75.
1553	1553	2 (26) Beginning January 1, 2008, tangible personal property
1554	1554	3 used in the construction or maintenance of a community water
1555	1555	4 supply, as defined under Section 3.145 of the Environmental
1556	1556	5 Protection Act, that is operated by a not-for-profit
1557	1557	6 corporation that holds a valid water supply permit issued
1558	1558	7 under Title IV of the Environmental Protection Act. This
1559	1559	8 paragraph is exempt from the provisions of Section 3-75.
1560	1560	9 (27) Beginning January 1, 2010 and continuing through
1561	1561	10 December 31, 2029, materials, parts, equipment, components,
1562	1562	11 and furnishings incorporated into or upon an aircraft as part
1563	1563	12 of the modification, refurbishment, completion, replacement,
1564	1564	13 repair, or maintenance of the aircraft. This exemption
1565	1565	14 includes consumable supplies used in the modification,
1566	1566	15 refurbishment, completion, replacement, repair, and
1567	1567	16 maintenance of aircraft. However, until January 1, 2024, this
1568	1568	17 exemption excludes any materials, parts, equipment,
1569	1569	18 components, and consumable supplies used in the modification,
1570	1570	19 replacement, repair, and maintenance of aircraft engines or
1571	1571	20 power plants, whether such engines or power plants are
1572	1572	21 installed or uninstalled upon any such aircraft. "Consumable
1573	1573	22 supplies" include, but are not limited to, adhesive, tape,
1574	1574	23 sandpaper, general purpose lubricants, cleaning solution,
1575	1575	24 latex gloves, and protective films.
1576	1576	25 Beginning January 1, 2010 and continuing through December
1577	1577	26 31, 2023, this exemption applies only to the use of qualifying
1578	1578
1579	1579
1580	1580
1581	1581
1582	1582
1583	1583	SB1178 - 43 - LRB104 08564 HLH 18616 b
1584	1584
1585	1585
1586	1586	SB1178- 44 -LRB104 08564 HLH 18616 b SB1178 - 44 - LRB104 08564 HLH 18616 b
1587	1587	SB1178 - 44 - LRB104 08564 HLH 18616 b
1588	1588	1 tangible personal property transferred incident to the
1589	1589	2 modification, refurbishment, completion, replacement, repair,
1590	1590	3 or maintenance of aircraft by persons who (i) hold an Air
1591	1591	4 Agency Certificate and are empowered to operate an approved
1592	1592	5 repair station by the Federal Aviation Administration, (ii)
1593	1593	6 have a Class IV Rating, and (iii) conduct operations in
1594	1594	7 accordance with Part 145 of the Federal Aviation Regulations.
1595	1595	8 From January 1, 2024 through December 31, 2029, this exemption
1596	1596	9 applies only to the use of qualifying tangible personal
1597	1597	10 property transferred incident to: (A) the modification,
1598	1598	11 refurbishment, completion, repair, replacement, or maintenance
1599	1599	12 of an aircraft by persons who (i) hold an Air Agency
1600	1600	13 Certificate and are empowered to operate an approved repair
1601	1601	14 station by the Federal Aviation Administration, (ii) have a
1602	1602	15 Class IV Rating, and (iii) conduct operations in accordance
1603	1603	16 with Part 145 of the Federal Aviation Regulations; and (B) the
1604	1604	17 modification, replacement, repair, and maintenance of aircraft
1605	1605	18 engines or power plants without regard to whether or not those
1606	1606	19 persons meet the qualifications of item (A).
1607	1607	20 The exemption does not include aircraft operated by a
1608	1608	21 commercial air carrier providing scheduled passenger air
1609	1609	22 service pursuant to authority issued under Part 121 or Part
1610	1610	23 129 of the Federal Aviation Regulations. The changes made to
1611	1611	24 this paragraph (27) by Public Act 98-534 are declarative of
1612	1612	25 existing law. It is the intent of the General Assembly that the
1613	1613	26 exemption under this paragraph (27) applies continuously from
1614	1614
1615	1615
1616	1616
1617	1617
1618	1618
1619	1619	SB1178 - 44 - LRB104 08564 HLH 18616 b
1620	1620
1621	1621
1622	1622	SB1178- 45 -LRB104 08564 HLH 18616 b SB1178 - 45 - LRB104 08564 HLH 18616 b
1623	1623	SB1178 - 45 - LRB104 08564 HLH 18616 b
1624	1624	1 January 1, 2010 through December 31, 2024; however, no claim
1625	1625	2 for credit or refund is allowed for taxes paid as a result of
1626	1626	3 the disallowance of this exemption on or after January 1, 2015
1627	1627	4 and prior to February 5, 2020 (the effective date of Public Act
1628	1628	5 101-629).
1629	1629	6 (28) Tangible personal property purchased by a
1630	1630	7 public-facilities corporation, as described in Section
1631	1631	8 11-65-10 of the Illinois Municipal Code, for purposes of
1632	1632	9 constructing or furnishing a municipal convention hall, but
1633	1633	10 only if the legal title to the municipal convention hall is
1634	1634	11 transferred to the municipality without any further
1635	1635	12 consideration by or on behalf of the municipality at the time
1636	1636	13 of the completion of the municipal convention hall or upon the
1637	1637	14 retirement or redemption of any bonds or other debt
1638	1638	15 instruments issued by the public-facilities corporation in
1639	1639	16 connection with the development of the municipal convention
1640	1640	17 hall. This exemption includes existing public-facilities
1641	1641	18 corporations as provided in Section 11-65-25 of the Illinois
1642	1642	19 Municipal Code. This paragraph is exempt from the provisions
1643	1643	20 of Section 3-75.
1644	1644	21 (29) Beginning January 1, 2017 and through December 31,
1645	1645	22 2026, menstrual pads, tampons, and menstrual cups.
1646	1646	23 (30) Tangible personal property transferred to a purchaser
1647	1647	24 who is exempt from the tax imposed by this Act by operation of
1648	1648	25 federal law. This paragraph is exempt from the provisions of
1649	1649	26 Section 3-75.
1650	1650
1651	1651
1652	1652
1653	1653
1654	1654
1655	1655	SB1178 - 45 - LRB104 08564 HLH 18616 b
1656	1656
1657	1657
1658	1658	SB1178- 46 -LRB104 08564 HLH 18616 b SB1178 - 46 - LRB104 08564 HLH 18616 b
1659	1659	SB1178 - 46 - LRB104 08564 HLH 18616 b
1660	1660	1 (31) Qualified tangible personal property used in the
1661	1661	2 construction or operation of a data center that has been
1662	1662	3 granted a certificate of exemption by the Department of
1663	1663	4 Commerce and Economic Opportunity, whether that tangible
1664	1664	5 personal property is purchased by the owner, operator, or
1665	1665	6 tenant of the data center or by a contractor or subcontractor
1666	1666	7 of the owner, operator, or tenant. Data centers that would
1667	1667	8 have qualified for a certificate of exemption prior to January
1668	1668	9 1, 2020 had Public Act 101-31 been in effect, may apply for and
1669	1669	10 obtain an exemption for subsequent purchases of computer
1670	1670	11 equipment or enabling software purchased or leased to upgrade,
1671	1671	12 supplement, or replace computer equipment or enabling software
1672	1672	13 purchased or leased in the original investment that would have
1673	1673	14 qualified.
1674	1674	15 The Department of Commerce and Economic Opportunity shall
1675	1675	16 grant a certificate of exemption under this item (31) to
1676	1676	17 qualified data centers as defined by Section 605-1025 of the
1677	1677	18 Department of Commerce and Economic Opportunity Law of the
1678	1678	19 Civil Administrative Code of Illinois.
1679	1679	20 For the purposes of this item (31):
1680	1680	21 "Data center" means a building or a series of
1681	1681	22 buildings rehabilitated or constructed to house working
1682	1682	23 servers in one physical location or multiple sites within
1683	1683	24 the State of Illinois.
1684	1684	25 "Qualified tangible personal property" means:
1685	1685	26 electrical systems and equipment; climate control and
1686	1686
1687	1687
1688	1688
1689	1689
1690	1690
1691	1691	SB1178 - 46 - LRB104 08564 HLH 18616 b
1692	1692
1693	1693
1694	1694	SB1178- 47 -LRB104 08564 HLH 18616 b SB1178 - 47 - LRB104 08564 HLH 18616 b
1695	1695	SB1178 - 47 - LRB104 08564 HLH 18616 b
1696	1696	1 chilling equipment and systems; mechanical systems and
1697	1697	2 equipment; monitoring and secure systems; emergency
1698	1698	3 generators; hardware; computers; servers; data storage
1699	1699	4 devices; network connectivity equipment; racks; cabinets;
1700	1700	5 telecommunications cabling infrastructure; raised floor
1701	1701	6 systems; peripheral components or systems; software;
1702	1702	7 mechanical, electrical, or plumbing systems; battery
1703	1703	8 systems; cooling systems and towers; temperature control
1704	1704	9 systems; other cabling; and other data center
1705	1705	10 infrastructure equipment and systems necessary to operate
1706	1706	11 qualified tangible personal property, including fixtures;
1707	1707	12 and component parts of any of the foregoing, including
1708	1708	13 installation, maintenance, repair, refurbishment, and
1709	1709	14 replacement of qualified tangible personal property to
1710	1710	15 generate, transform, transmit, distribute, or manage
1711	1711	16 electricity necessary to operate qualified tangible
1712	1712	17 personal property; and all other tangible personal
1713	1713	18 property that is essential to the operations of a computer
1714	1714	19 data center. The term "qualified tangible personal
1715	1715	20 property" also includes building materials physically
1716	1716	21 incorporated into the qualifying data center. To document
1717	1717	22 the exemption allowed under this Section, the retailer
1718	1718	23 must obtain from the purchaser a copy of the certificate
1719	1719	24 of eligibility issued by the Department of Commerce and
1720	1720	25 Economic Opportunity.
1721	1721	26 This item (31) is exempt from the provisions of Section
1722	1722
1723	1723
1724	1724
1725	1725
1726	1726
1727	1727	SB1178 - 47 - LRB104 08564 HLH 18616 b
1728	1728
1729	1729
1730	1730	SB1178- 48 -LRB104 08564 HLH 18616 b SB1178 - 48 - LRB104 08564 HLH 18616 b
1731	1731	SB1178 - 48 - LRB104 08564 HLH 18616 b
1732	1732	1 3-75.
1733	1733	2 (32) Beginning July 1, 2022, breast pumps, breast pump
1734	1734	3 collection and storage supplies, and breast pump kits. This
1735	1735	4 item (32) is exempt from the provisions of Section 3-75. As
1736	1736	5 used in this item (32):
1737	1737	6 "Breast pump" means an electrically controlled or
1738	1738	7 manually controlled pump device designed or marketed to be
1739	1739	8 used to express milk from a human breast during lactation,
1740	1740	9 including the pump device and any battery, AC adapter, or
1741	1741	10 other power supply unit that is used to power the pump
1742	1742	11 device and is packaged and sold with the pump device at the
1743	1743	12 time of sale.
1744	1744	13 "Breast pump collection and storage supplies" means
1745	1745	14 items of tangible personal property designed or marketed
1746	1746	15 to be used in conjunction with a breast pump to collect
1747	1747	16 milk expressed from a human breast and to store collected
1748	1748	17 milk until it is ready for consumption.
1749	1749	18 "Breast pump collection and storage supplies"
1750	1750	19 includes, but is not limited to: breast shields and breast
1751	1751	20 shield connectors; breast pump tubes and tubing adapters;
1752	1752	21 breast pump valves and membranes; backflow protectors and
1753	1753	22 backflow protector adaptors; bottles and bottle caps
1754	1754	23 specific to the operation of the breast pump; and breast
1755	1755	24 milk storage bags.
1756	1756	25 "Breast pump collection and storage supplies" does not
1757	1757	26 include: (1) bottles and bottle caps not specific to the
1758	1758
1759	1759
1760	1760
1761	1761
1762	1762
1763	1763	SB1178 - 48 - LRB104 08564 HLH 18616 b
1764	1764
1765	1765
1766	1766	SB1178- 49 -LRB104 08564 HLH 18616 b SB1178 - 49 - LRB104 08564 HLH 18616 b
1767	1767	SB1178 - 49 - LRB104 08564 HLH 18616 b
1768	1768	1 operation of the breast pump; (2) breast pump travel bags
1769	1769	2 and other similar carrying accessories, including ice
1770	1770	3 packs, labels, and other similar products; (3) breast pump
1771	1771	4 cleaning supplies; (4) nursing bras, bra pads, breast
1772	1772	5 shells, and other similar products; and (5) creams,
1773	1773	6 ointments, and other similar products that relieve
1774	1774	7 breastfeeding-related symptoms or conditions of the
1775	1775	8 breasts or nipples, unless sold as part of a breast pump
1776	1776	9 kit that is pre-packaged by the breast pump manufacturer
1777	1777	10 or distributor.
1778	1778	11 "Breast pump kit" means a kit that: (1) contains no
1779	1779	12 more than a breast pump, breast pump collection and
1780	1780	13 storage supplies, a rechargeable battery for operating the
1781	1781	14 breast pump, a breastmilk cooler, bottle stands, ice
1782	1782	15 packs, and a breast pump carrying case; and (2) is
1783	1783	16 pre-packaged as a breast pump kit by the breast pump
1784	1784	17 manufacturer or distributor.
1785	1785	18 (33) Tangible personal property sold by or on behalf of
1786	1786	19 the State Treasurer pursuant to the Revised Uniform Unclaimed
1787	1787	20 Property Act. This item (33) is exempt from the provisions of
1788	1788	21 Section 3-75.
1789	1789	22 (34) Beginning on January 1, 2024, tangible personal
1790	1790	23 property purchased by an active duty member of the armed
1791	1791	24 forces of the United States who presents valid military
1792	1792	25 identification and purchases the property using a form of
1793	1793	26 payment where the federal government is the payor. The member
1794	1794
1795	1795
1796	1796
1797	1797
1798	1798
1799	1799	SB1178 - 49 - LRB104 08564 HLH 18616 b
1800	1800
1801	1801
1802	1802	SB1178- 50 -LRB104 08564 HLH 18616 b SB1178 - 50 - LRB104 08564 HLH 18616 b
1803	1803	SB1178 - 50 - LRB104 08564 HLH 18616 b
1804	1804	1 of the armed forces must complete, at the point of sale, a form
1805	1805	2 prescribed by the Department of Revenue documenting that the
1806	1806	3 transaction is eligible for the exemption under this
1807	1807	4 paragraph. Retailers must keep the form as documentation of
1808	1808	5 the exemption in their records for a period of not less than 6
1809	1809	6 years. "Armed forces of the United States" means the United
1810	1810	7 States Army, Navy, Air Force, Space Force, Marine Corps, or
1811	1811	8 Coast Guard. This paragraph is exempt from the provisions of
1812	1812	9 Section 3-75.
1813	1813	10 (35) Beginning July 1, 2024, home-delivered meals provided
1814	1814	11 to Medicare or Medicaid recipients when payment is made by an
1815	1815	12 intermediary, such as a Medicare Administrative Contractor, a
1816	1816	13 Managed Care Organization, or a Medicare Advantage
1817	1817	14 Organization, pursuant to a government contract. This
1818	1818	15 paragraph (35) is exempt from the provisions of Section 3-75.
1819	1819	16 (36) (35) Beginning on January 1, 2026, as further defined
1820	1820	17 in Section 3-10, food prepared for immediate consumption and
1821	1821	18 transferred incident to a sale of service subject to this Act
1822	1822	19 or the Service Occupation Tax Act by an entity licensed under
1823	1823	20 the Hospital Licensing Act, the Nursing Home Care Act, the
1824	1824	21 Assisted Living and Shared Housing Act, the ID/DD Community
1825	1825	22 Care Act, the MC/DD Act, the Specialized Mental Health
1826	1826	23 Rehabilitation Act of 2013, or the Child Care Act of 1969, or
1827	1827	24 by an entity that holds a permit issued pursuant to the Life
1828	1828	25 Care Facilities Act. This item (36) (35) is exempt from the
1829	1829	26 provisions of Section 3-75.
1830	1830
1831	1831
1832	1832
1833	1833
1834	1834
1835	1835	SB1178 - 50 - LRB104 08564 HLH 18616 b
1836	1836
1837	1837
1838	1838	SB1178- 51 -LRB104 08564 HLH 18616 b SB1178 - 51 - LRB104 08564 HLH 18616 b
1839	1839	SB1178 - 51 - LRB104 08564 HLH 18616 b
1840	1840	1 (37) (36) Beginning on January 1, 2026, as further defined
1841	1841	2 in Section 3-10, food for human consumption that is to be
1842	1842	3 consumed off the premises where it is sold (other than
1843	1843	4 alcoholic beverages, food consisting of or infused with adult
1844	1844	5 use cannabis, soft drinks, candy, and food that has been
1845	1845	6 prepared for immediate consumption). This item (37) (36) is
1846	1846	7 exempt from the provisions of Section 3-75.
1847	1847	8 (38) (35) Use by a lessee of the following leased tangible
1848	1848	9 personal property:
1849	1849	10 (1) software transferred subject to a license that
1850	1850	11 meets the following requirements:
1851	1851	12 (A) it is evidenced by a written agreement signed
1852	1852	13 by the licensor and the customer;
1853	1853	14 (i) an electronic agreement in which the
1854	1854	15 customer accepts the license by means of an
1855	1855	16 electronic signature that is verifiable and can be
1856	1856	17 authenticated and is attached to or made part of
1857	1857	18 the license will comply with this requirement;
1858	1858	19 (ii) a license agreement in which the customer
1859	1859	20 electronically accepts the terms by clicking "I
1860	1860	21 agree" does not comply with this requirement;
1861	1861	22 (B) it restricts the customer's duplication and
1862	1862	23 use of the software;
1863	1863	24 (C) it prohibits the customer from licensing,
1864	1864	25 sublicensing, or transferring the software to a third
1865	1865	26 party (except to a related party) without the
1866	1866
1867	1867
1868	1868
1869	1869
1870	1870
1871	1871	SB1178 - 51 - LRB104 08564 HLH 18616 b
1872	1872
1873	1873
1874	1874	SB1178- 52 -LRB104 08564 HLH 18616 b SB1178 - 52 - LRB104 08564 HLH 18616 b
1875	1875	SB1178 - 52 - LRB104 08564 HLH 18616 b
1876	1876	1 permission and continued control of the licensor;
1877	1877	2 (D) the licensor has a policy of providing another
1878	1878	3 copy at minimal or no charge if the customer loses or
1879	1879	4 damages the software, or of permitting the licensee to
1880	1880	5 make and keep an archival copy, and such policy is
1881	1881	6 either stated in the license agreement, supported by
1882	1882	7 the licensor's books and records, or supported by a
1883	1883	8 notarized statement made under penalties of perjury by
1884	1884	9 the licensor; and
1885	1885	10 (E) the customer must destroy or return all copies
1886	1886	11 of the software to the licensor at the end of the
1887	1887	12 license period; this provision is deemed to be met, in
1888	1888	13 the case of a perpetual license, without being set
1889	1889	14 forth in the license agreement; and
1890	1890	15 (2) property that is subject to a tax on lease
1891	1891	16 receipts imposed by a home rule unit of local government
1892	1892	17 if the ordinance imposing that tax was adopted prior to
1893	1893	18 January 1, 2023.
1894	1894	19 (39) Tangible personal property that is (i) purchased by a
1895	1895	20 developer who has been awarded a certificate of exemption
1896	1896	21 under this paragraph (39) by the Department of Commerce and
1897	1897	22 Economic Opportunity and (ii) used to rehabilitate brownfield
1898	1898	23 or grayfield property, as defined in Section 246 of the
1899	1899	24 Illinois Income Tax Act, after remediation has occurred. The
1900	1900	25 Department of Commerce and Economic Opportunity shall award
1901	1901	26 certificates of exemption under this paragraph (39) for
1902	1902
1903	1903
1904	1904
1905	1905
1906	1906
1907	1907	SB1178 - 52 - LRB104 08564 HLH 18616 b
1908	1908
1909	1909
1910	1910	SB1178- 53 -LRB104 08564 HLH 18616 b SB1178 - 53 - LRB104 08564 HLH 18616 b
1911	1911	SB1178 - 53 - LRB104 08564 HLH 18616 b
1912	1912	1 property that meets the criteria under this paragraph (39).
1913	1913	2 This paragraph is exempt from the provisions of Section 3-75.
1914	1914	3 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
1915	1915	4 Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1916	1916	5 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
1917	1917	6 Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
1918	1918	7 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
1919	1919	8 103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
1920	1920	9 7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995,
1921	1921	10 eff. 8-9-24; revised 11-26-24.)
1922	1922	11 Section 20. The Service Occupation Tax Act is amended by
1923	1923	12 changing Section 3-5 as follows:
1924	1924	13 (35 ILCS 115/3-5)
1925	1925	14 Sec. 3-5. Exemptions. The following tangible personal
1926	1926	15 property is exempt from the tax imposed by this Act:
1927	1927	16 (1) Personal property sold by a corporation, society,
1928	1928	17 association, foundation, institution, or organization, other
1929	1929	18 than a limited liability company, that is organized and
1930	1930	19 operated as a not-for-profit service enterprise for the
1931	1931	20 benefit of persons 65 years of age or older if the personal
1932	1932	21 property was not purchased by the enterprise for the purpose
1933	1933	22 of resale by the enterprise.
1934	1934	23 (2) Personal property purchased by a not-for-profit
1935	1935	24 Illinois county fair association for use in conducting,
1936	1936
1937	1937
1938	1938
1939	1939
1940	1940
1941	1941	SB1178 - 53 - LRB104 08564 HLH 18616 b
1942	1942
1943	1943
1944	1944	SB1178- 54 -LRB104 08564 HLH 18616 b SB1178 - 54 - LRB104 08564 HLH 18616 b
1945	1945	SB1178 - 54 - LRB104 08564 HLH 18616 b
1946	1946	1 operating, or promoting the county fair.
1947	1947	2 (3) Personal property purchased by any not-for-profit arts
1948	1948	3 or cultural organization that establishes, by proof required
1949	1949	4 by the Department by rule, that it has received an exemption
1950	1950	5 under Section 501(c)(3) of the Internal Revenue Code and that
1951	1951	6 is organized and operated primarily for the presentation or
1952	1952	7 support of arts or cultural programming, activities, or
1953	1953	8 services. These organizations include, but are not limited to,
1954	1954	9 music and dramatic arts organizations such as symphony
1955	1955	10 orchestras and theatrical groups, arts and cultural service
1956	1956	11 organizations, local arts councils, visual arts organizations,
1957	1957	12 and media arts organizations. On and after July 1, 2001 (the
1958	1958	13 effective date of Public Act 92-35), however, an entity
1959	1959	14 otherwise eligible for this exemption shall not make tax-free
1960	1960	15 purchases unless it has an active identification number issued
1961	1961	16 by the Department.
1962	1962	17 (4) Legal tender, currency, medallions, or gold or silver
1963	1963	18 coinage issued by the State of Illinois, the government of the
1964	1964	19 United States of America, or the government of any foreign
1965	1965	20 country, and bullion.
1966	1966	21 (5) Until July 1, 2003 and beginning again on September 1,
1967	1967	22 2004 through August 30, 2014, graphic arts machinery and
1968	1968	23 equipment, including repair and replacement parts, both new
1969	1969	24 and used, and including that manufactured on special order or
1970	1970	25 purchased for lease, certified by the purchaser to be used
1971	1971	26 primarily for graphic arts production. Equipment includes
1972	1972
1973	1973
1974	1974
1975	1975
1976	1976
1977	1977	SB1178 - 54 - LRB104 08564 HLH 18616 b
1978	1978
1979	1979
1980	1980	SB1178- 55 -LRB104 08564 HLH 18616 b SB1178 - 55 - LRB104 08564 HLH 18616 b
1981	1981	SB1178 - 55 - LRB104 08564 HLH 18616 b
1982	1982	1 chemicals or chemicals acting as catalysts but only if the
1983	1983	2 chemicals or chemicals acting as catalysts effect a direct and
1984	1984	3 immediate change upon a graphic arts product. Beginning on
1985	1985	4 July 1, 2017, graphic arts machinery and equipment is included
1986	1986	5 in the manufacturing and assembling machinery and equipment
1987	1987	6 exemption under Section 2 of this Act.
1988	1988	7 (6) Personal property sold by a teacher-sponsored student
1989	1989	8 organization affiliated with an elementary or secondary school
1990	1990	9 located in Illinois.
1991	1991	10 (7) Farm machinery and equipment, both new and used,
1992	1992	11 including that manufactured on special order, certified by the
1993	1993	12 purchaser to be used primarily for production agriculture or
1994	1994	13 State or federal agricultural programs, including individual
1995	1995	14 replacement parts for the machinery and equipment, including
1996	1996	15 machinery and equipment purchased for lease, and including
1997	1997	16 implements of husbandry defined in Section 1-130 of the
1998	1998	17 Illinois Vehicle Code, farm machinery and agricultural
1999	1999	18 chemical and fertilizer spreaders, and nurse wagons required
2000	2000	19 to be registered under Section 3-809 of the Illinois Vehicle
2001	2001	20 Code, but excluding other motor vehicles required to be
2002	2002	21 registered under the Illinois Vehicle Code. Horticultural
2003	2003	22 polyhouses or hoop houses used for propagating, growing, or
2004	2004	23 overwintering plants shall be considered farm machinery and
2005	2005	24 equipment under this item (7). Agricultural chemical tender
2006	2006	25 tanks and dry boxes shall include units sold separately from a
2007	2007	26 motor vehicle required to be licensed and units sold mounted
2008	2008
2009	2009
2010	2010
2011	2011
2012	2012
2013	2013	SB1178 - 55 - LRB104 08564 HLH 18616 b
2014	2014
2015	2015
2016	2016	SB1178- 56 -LRB104 08564 HLH 18616 b SB1178 - 56 - LRB104 08564 HLH 18616 b
2017	2017	SB1178 - 56 - LRB104 08564 HLH 18616 b
2018	2018	1 on a motor vehicle required to be licensed if the selling price
2019	2019	2 of the tender is separately stated.
2020	2020	3 Farm machinery and equipment shall include precision
2021	2021	4 farming equipment that is installed or purchased to be
2022	2022	5 installed on farm machinery and equipment, including, but not
2023	2023	6 limited to, tractors, harvesters, sprayers, planters, seeders,
2024	2024	7 or spreaders. Precision farming equipment includes, but is not
2025	2025	8 limited to, soil testing sensors, computers, monitors,
2026	2026	9 software, global positioning and mapping systems, and other
2027	2027	10 such equipment.
2028	2028	11 Farm machinery and equipment also includes computers,
2029	2029	12 sensors, software, and related equipment used primarily in the
2030	2030	13 computer-assisted operation of production agriculture
2031	2031	14 facilities, equipment, and activities such as, but not limited
2032	2032	15 to, the collection, monitoring, and correlation of animal and
2033	2033	16 crop data for the purpose of formulating animal diets and
2034	2034	17 agricultural chemicals.
2035	2035	18 Beginning on January 1, 2024, farm machinery and equipment
2036	2036	19 also includes electrical power generation equipment used
2037	2037	20 primarily for production agriculture.
2038	2038	21 This item (7) is exempt from the provisions of Section
2039	2039	22 3-55.
2040	2040	23 (8) Until June 30, 2013, fuel and petroleum products sold
2041	2041	24 to or used by an air common carrier, certified by the carrier
2042	2042	25 to be used for consumption, shipment, or storage in the
2043	2043	26 conduct of its business as an air common carrier, for a flight
2044	2044
2045	2045
2046	2046
2047	2047
2048	2048
2049	2049	SB1178 - 56 - LRB104 08564 HLH 18616 b
2050	2050
2051	2051
2052	2052	SB1178- 57 -LRB104 08564 HLH 18616 b SB1178 - 57 - LRB104 08564 HLH 18616 b
2053	2053	SB1178 - 57 - LRB104 08564 HLH 18616 b
2054	2054	1 destined for or returning from a location or locations outside
2055	2055	2 the United States without regard to previous or subsequent
2056	2056	3 domestic stopovers.
2057	2057	4 Beginning July 1, 2013, fuel and petroleum products sold
2058	2058	5 to or used by an air carrier, certified by the carrier to be
2059	2059	6 used for consumption, shipment, or storage in the conduct of
2060	2060	7 its business as an air common carrier, for a flight that (i) is
2061	2061	8 engaged in foreign trade or is engaged in trade between the
2062	2062	9 United States and any of its possessions and (ii) transports
2063	2063	10 at least one individual or package for hire from the city of
2064	2064	11 origination to the city of final destination on the same
2065	2065	12 aircraft, without regard to a change in the flight number of
2066	2066	13 that aircraft.
2067	2067	14 (9) Proceeds of mandatory service charges separately
2068	2068	15 stated on customers' bills for the purchase and consumption of
2069	2069	16 food and beverages, to the extent that the proceeds of the
2070	2070	17 service charge are in fact turned over as tips or as a
2071	2071	18 substitute for tips to the employees who participate directly
2072	2072	19 in preparing, serving, hosting or cleaning up the food or
2073	2073	20 beverage function with respect to which the service charge is
2074	2074	21 imposed.
2075	2075	22 (10) Until July 1, 2003, oil field exploration, drilling,
2076	2076	23 and production equipment, including (i) rigs and parts of
2077	2077	24 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
2078	2078	25 pipe and tubular goods, including casing and drill strings,
2079	2079	26 (iii) pumps and pump-jack units, (iv) storage tanks and flow
2080	2080
2081	2081
2082	2082
2083	2083
2084	2084
2085	2085	SB1178 - 57 - LRB104 08564 HLH 18616 b
2086	2086
2087	2087
2088	2088	SB1178- 58 -LRB104 08564 HLH 18616 b SB1178 - 58 - LRB104 08564 HLH 18616 b
2089	2089	SB1178 - 58 - LRB104 08564 HLH 18616 b
2090	2090	1 lines, (v) any individual replacement part for oil field
2091	2091	2 exploration, drilling, and production equipment, and (vi)
2092	2092	3 machinery and equipment purchased for lease; but excluding
2093	2093	4 motor vehicles required to be registered under the Illinois
2094	2094	5 Vehicle Code.
2095	2095	6 (11) Photoprocessing machinery and equipment, including
2096	2096	7 repair and replacement parts, both new and used, including
2097	2097	8 that manufactured on special order, certified by the purchaser
2098	2098	9 to be used primarily for photoprocessing, and including
2099	2099	10 photoprocessing machinery and equipment purchased for lease.
2100	2100	11 (12) Until July 1, 2028, coal and aggregate exploration,
2101	2101	12 mining, off-highway hauling, processing, maintenance, and
2102	2102	13 reclamation equipment, including replacement parts and
2103	2103	14 equipment, and including equipment purchased for lease, but
2104	2104	15 excluding motor vehicles required to be registered under the
2105	2105	16 Illinois Vehicle Code. The changes made to this Section by
2106	2106	17 Public Act 97-767 apply on and after July 1, 2003, but no claim
2107	2107	18 for credit or refund is allowed on or after August 16, 2013
2108	2108	19 (the effective date of Public Act 98-456) for such taxes paid
2109	2109	20 during the period beginning July 1, 2003 and ending on August
2110	2110	21 16, 2013 (the effective date of Public Act 98-456).
2111	2111	22 (13) Beginning January 1, 1992 and through June 30, 2016,
2112	2112	23 food for human consumption that is to be consumed off the
2113	2113	24 premises where it is sold (other than alcoholic beverages,
2114	2114	25 soft drinks and food that has been prepared for immediate
2115	2115	26 consumption) and prescription and non-prescription medicines,
2116	2116
2117	2117
2118	2118
2119	2119
2120	2120
2121	2121	SB1178 - 58 - LRB104 08564 HLH 18616 b
2122	2122
2123	2123
2124	2124	SB1178- 59 -LRB104 08564 HLH 18616 b SB1178 - 59 - LRB104 08564 HLH 18616 b
2125	2125	SB1178 - 59 - LRB104 08564 HLH 18616 b
2126	2126	1 drugs, medical appliances, and insulin, urine testing
2127	2127	2 materials, syringes, and needles used by diabetics, for human
2128	2128	3 use, when purchased for use by a person receiving medical
2129	2129	4 assistance under Article V of the Illinois Public Aid Code who
2130	2130	5 resides in a licensed long-term care facility, as defined in
2131	2131	6 the Nursing Home Care Act, or in a licensed facility as defined
2132	2132	7 in the ID/DD Community Care Act, the MC/DD Act, or the
2133	2133	8 Specialized Mental Health Rehabilitation Act of 2013.
2134	2134	9 (14) Semen used for artificial insemination of livestock
2135	2135	10 for direct agricultural production.
2136	2136	11 (15) Horses, or interests in horses, registered with and
2137	2137	12 meeting the requirements of any of the Arabian Horse Club
2138	2138	13 Registry of America, Appaloosa Horse Club, American Quarter
2139	2139	14 Horse Association, United States Trotting Association, or
2140	2140	15 Jockey Club, as appropriate, used for purposes of breeding or
2141	2141	16 racing for prizes. This item (15) is exempt from the
2142	2142	17 provisions of Section 3-55, and the exemption provided for
2143	2143	18 under this item (15) applies for all periods beginning May 30,
2144	2144	19 1995, but no claim for credit or refund is allowed on or after
2145	2145	20 January 1, 2008 (the effective date of Public Act 95-88) for
2146	2146	21 such taxes paid during the period beginning May 30, 2000 and
2147	2147	22 ending on January 1, 2008 (the effective date of Public Act
2148	2148	23 95-88).
2149	2149	24 (16) Computers and communications equipment utilized for
2150	2150	25 any hospital purpose and equipment used in the diagnosis,
2151	2151	26 analysis, or treatment of hospital patients sold to a lessor
2152	2152
2153	2153
2154	2154
2155	2155
2156	2156
2157	2157	SB1178 - 59 - LRB104 08564 HLH 18616 b
2158	2158
2159	2159
2160	2160	SB1178- 60 -LRB104 08564 HLH 18616 b SB1178 - 60 - LRB104 08564 HLH 18616 b
2161	2161	SB1178 - 60 - LRB104 08564 HLH 18616 b
2162	2162	1 who leases the equipment, under a lease of one year or longer
2163	2163	2 executed or in effect at the time of the purchase, to a
2164	2164	3 hospital that has been issued an active tax exemption
2165	2165	4 identification number by the Department under Section 1g of
2166	2166	5 the Retailers' Occupation Tax Act.
2167	2167	6 (17) Personal property sold to a lessor who leases the
2168	2168	7 property, under a lease of one year or longer executed or in
2169	2169	8 effect at the time of the purchase, to a governmental body that
2170	2170	9 has been issued an active tax exemption identification number
2171	2171	10 by the Department under Section 1g of the Retailers'
2172	2172	11 Occupation Tax Act.
2173	2173	12 (18) Beginning with taxable years ending on or after
2174	2174	13 December 31, 1995 and ending with taxable years ending on or
2175	2175	14 before December 31, 2004, personal property that is donated
2176	2176	15 for disaster relief to be used in a State or federally declared
2177	2177	16 disaster area in Illinois or bordering Illinois by a
2178	2178	17 manufacturer or retailer that is registered in this State to a
2179	2179	18 corporation, society, association, foundation, or institution
2180	2180	19 that has been issued a sales tax exemption identification
2181	2181	20 number by the Department that assists victims of the disaster
2182	2182	21 who reside within the declared disaster area.
2183	2183	22 (19) Beginning with taxable years ending on or after
2184	2184	23 December 31, 1995 and ending with taxable years ending on or
2185	2185	24 before December 31, 2004, personal property that is used in
2186	2186	25 the performance of infrastructure repairs in this State,
2187	2187	26 including, but not limited to, municipal roads and streets,
2188	2188
2189	2189
2190	2190
2191	2191
2192	2192
2193	2193	SB1178 - 60 - LRB104 08564 HLH 18616 b
2194	2194
2195	2195
2196	2196	SB1178- 61 -LRB104 08564 HLH 18616 b SB1178 - 61 - LRB104 08564 HLH 18616 b
2197	2197	SB1178 - 61 - LRB104 08564 HLH 18616 b
2198	2198	1 access roads, bridges, sidewalks, waste disposal systems,
2199	2199	2 water and sewer line extensions, water distribution and
2200	2200	3 purification facilities, storm water drainage and retention
2201	2201	4 facilities, and sewage treatment facilities, resulting from a
2202	2202	5 State or federally declared disaster in Illinois or bordering
2203	2203	6 Illinois when such repairs are initiated on facilities located
2204	2204	7 in the declared disaster area within 6 months after the
2205	2205	8 disaster.
2206	2206	9 (20) Beginning July 1, 1999, game or game birds sold at a
2207	2207	10 "game breeding and hunting preserve area" as that term is used
2208	2208	11 in the Wildlife Code. This paragraph is exempt from the
2209	2209	12 provisions of Section 3-55.
2210	2210	13 (21) A motor vehicle, as that term is defined in Section
2211	2211	14 1-146 of the Illinois Vehicle Code, that is donated to a
2212	2212	15 corporation, limited liability company, society, association,
2213	2213	16 foundation, or institution that is determined by the
2214	2214	17 Department to be organized and operated exclusively for
2215	2215	18 educational purposes. For purposes of this exemption, "a
2216	2216	19 corporation, limited liability company, society, association,
2217	2217	20 foundation, or institution organized and operated exclusively
2218	2218	21 for educational purposes" means all tax-supported public
2219	2219	22 schools, private schools that offer systematic instruction in
2220	2220	23 useful branches of learning by methods common to public
2221	2221	24 schools and that compare favorably in their scope and
2222	2222	25 intensity with the course of study presented in tax-supported
2223	2223	26 schools, and vocational or technical schools or institutes
2224	2224
2225	2225
2226	2226
2227	2227
2228	2228
2229	2229	SB1178 - 61 - LRB104 08564 HLH 18616 b
2230	2230
2231	2231
2232	2232	SB1178- 62 -LRB104 08564 HLH 18616 b SB1178 - 62 - LRB104 08564 HLH 18616 b
2233	2233	SB1178 - 62 - LRB104 08564 HLH 18616 b
2234	2234	1 organized and operated exclusively to provide a course of
2235	2235	2 study of not less than 6 weeks duration and designed to prepare
2236	2236	3 individuals to follow a trade or to pursue a manual,
2237	2237	4 technical, mechanical, industrial, business, or commercial
2238	2238	5 occupation.
2239	2239	6 (22) Beginning January 1, 2000, personal property,
2240	2240	7 including food, purchased through fundraising events for the
2241	2241	8 benefit of a public or private elementary or secondary school,
2242	2242	9 a group of those schools, or one or more school districts if
2243	2243	10 the events are sponsored by an entity recognized by the school
2244	2244	11 district that consists primarily of volunteers and includes
2245	2245	12 parents and teachers of the school children. This paragraph
2246	2246	13 does not apply to fundraising events (i) for the benefit of
2247	2247	14 private home instruction or (ii) for which the fundraising
2248	2248	15 entity purchases the personal property sold at the events from
2249	2249	16 another individual or entity that sold the property for the
2250	2250	17 purpose of resale by the fundraising entity and that profits
2251	2251	18 from the sale to the fundraising entity. This paragraph is
2252	2252	19 exempt from the provisions of Section 3-55.
2253	2253	20 (23) Beginning January 1, 2000 and through December 31,
2254	2254	21 2001, new or used automatic vending machines that prepare and
2255	2255	22 serve hot food and beverages, including coffee, soup, and
2256	2256	23 other items, and replacement parts for these machines.
2257	2257	24 Beginning January 1, 2002 and through June 30, 2003, machines
2258	2258	25 and parts for machines used in commercial, coin-operated
2259	2259	26 amusement and vending business if a use or occupation tax is
2260	2260
2261	2261
2262	2262
2263	2263
2264	2264
2265	2265	SB1178 - 62 - LRB104 08564 HLH 18616 b
2266	2266
2267	2267
2268	2268	SB1178- 63 -LRB104 08564 HLH 18616 b SB1178 - 63 - LRB104 08564 HLH 18616 b
2269	2269	SB1178 - 63 - LRB104 08564 HLH 18616 b
2270	2270	1 paid on the gross receipts derived from the use of the
2271	2271	2 commercial, coin-operated amusement and vending machines. This
2272	2272	3 paragraph is exempt from the provisions of Section 3-55.
2273	2273	4 (24) Beginning on August 2, 2001 (the effective date of
2274	2274	5 Public Act 92-227), computers and communications equipment
2275	2275	6 utilized for any hospital purpose and equipment used in the
2276	2276	7 diagnosis, analysis, or treatment of hospital patients sold to
2277	2277	8 a lessor who leases the equipment, under a lease of one year or
2278	2278	9 longer executed or in effect at the time of the purchase, to a
2279	2279	10 hospital that has been issued an active tax exemption
2280	2280	11 identification number by the Department under Section 1g of
2281	2281	12 the Retailers' Occupation Tax Act. This paragraph is exempt
2282	2282	13 from the provisions of Section 3-55.
2283	2283	14 (25) Beginning on August 2, 2001 (the effective date of
2284	2284	15 Public Act 92-227), personal property sold to a lessor who
2285	2285	16 leases the property, under a lease of one year or longer
2286	2286	17 executed or in effect at the time of the purchase, to a
2287	2287	18 governmental body that has been issued an active tax exemption
2288	2288	19 identification number by the Department under Section 1g of
2289	2289	20 the Retailers' Occupation Tax Act. This paragraph is exempt
2290	2290	21 from the provisions of Section 3-55.
2291	2291	22 (26) Beginning on January 1, 2002 and through June 30,
2292	2292	23 2016, tangible personal property purchased from an Illinois
2293	2293	24 retailer by a taxpayer engaged in centralized purchasing
2294	2294	25 activities in Illinois who will, upon receipt of the property
2295	2295	26 in Illinois, temporarily store the property in Illinois (i)
2296	2296
2297	2297
2298	2298
2299	2299
2300	2300
2301	2301	SB1178 - 63 - LRB104 08564 HLH 18616 b
2302	2302
2303	2303
2304	2304	SB1178- 64 -LRB104 08564 HLH 18616 b SB1178 - 64 - LRB104 08564 HLH 18616 b
2305	2305	SB1178 - 64 - LRB104 08564 HLH 18616 b
2306	2306	1 for the purpose of subsequently transporting it outside this
2307	2307	2 State for use or consumption thereafter solely outside this
2308	2308	3 State or (ii) for the purpose of being processed, fabricated,
2309	2309	4 or manufactured into, attached to, or incorporated into other
2310	2310	5 tangible personal property to be transported outside this
2311	2311	6 State and thereafter used or consumed solely outside this
2312	2312	7 State. The Director of Revenue shall, pursuant to rules
2313	2313	8 adopted in accordance with the Illinois Administrative
2314	2314	9 Procedure Act, issue a permit to any taxpayer in good standing
2315	2315	10 with the Department who is eligible for the exemption under
2316	2316	11 this paragraph (26). The permit issued under this paragraph
2317	2317	12 (26) shall authorize the holder, to the extent and in the
2318	2318	13 manner specified in the rules adopted under this Act, to
2319	2319	14 purchase tangible personal property from a retailer exempt
2320	2320	15 from the taxes imposed by this Act. Taxpayers shall maintain
2321	2321	16 all necessary books and records to substantiate the use and
2322	2322	17 consumption of all such tangible personal property outside of
2323	2323	18 the State of Illinois.
2324	2324	19 (27) Beginning January 1, 2008, tangible personal property
2325	2325	20 used in the construction or maintenance of a community water
2326	2326	21 supply, as defined under Section 3.145 of the Environmental
2327	2327	22 Protection Act, that is operated by a not-for-profit
2328	2328	23 corporation that holds a valid water supply permit issued
2329	2329	24 under Title IV of the Environmental Protection Act. This
2330	2330	25 paragraph is exempt from the provisions of Section 3-55.
2331	2331	26 (28) Tangible personal property sold to a
2332	2332
2333	2333
2334	2334
2335	2335
2336	2336
2337	2337	SB1178 - 64 - LRB104 08564 HLH 18616 b
2338	2338
2339	2339
2340	2340	SB1178- 65 -LRB104 08564 HLH 18616 b SB1178 - 65 - LRB104 08564 HLH 18616 b
2341	2341	SB1178 - 65 - LRB104 08564 HLH 18616 b
2342	2342	1 public-facilities corporation, as described in Section
2343	2343	2 11-65-10 of the Illinois Municipal Code, for purposes of
2344	2344	3 constructing or furnishing a municipal convention hall, but
2345	2345	4 only if the legal title to the municipal convention hall is
2346	2346	5 transferred to the municipality without any further
2347	2347	6 consideration by or on behalf of the municipality at the time
2348	2348	7 of the completion of the municipal convention hall or upon the
2349	2349	8 retirement or redemption of any bonds or other debt
2350	2350	9 instruments issued by the public-facilities corporation in
2351	2351	10 connection with the development of the municipal convention
2352	2352	11 hall. This exemption includes existing public-facilities
2353	2353	12 corporations as provided in Section 11-65-25 of the Illinois
2354	2354	13 Municipal Code. This paragraph is exempt from the provisions
2355	2355	14 of Section 3-55.
2356	2356	15 (29) Beginning January 1, 2010 and continuing through
2357	2357	16 December 31, 2029, materials, parts, equipment, components,
2358	2358	17 and furnishings incorporated into or upon an aircraft as part
2359	2359	18 of the modification, refurbishment, completion, replacement,
2360	2360	19 repair, or maintenance of the aircraft. This exemption
2361	2361	20 includes consumable supplies used in the modification,
2362	2362	21 refurbishment, completion, replacement, repair, and
2363	2363	22 maintenance of aircraft. However, until January 1, 2024, this
2364	2364	23 exemption excludes any materials, parts, equipment,
2365	2365	24 components, and consumable supplies used in the modification,
2366	2366	25 replacement, repair, and maintenance of aircraft engines or
2367	2367	26 power plants, whether such engines or power plants are
2368	2368
2369	2369
2370	2370
2371	2371
2372	2372
2373	2373	SB1178 - 65 - LRB104 08564 HLH 18616 b
2374	2374
2375	2375
2376	2376	SB1178- 66 -LRB104 08564 HLH 18616 b SB1178 - 66 - LRB104 08564 HLH 18616 b
2377	2377	SB1178 - 66 - LRB104 08564 HLH 18616 b
2378	2378	1 installed or uninstalled upon any such aircraft. "Consumable
2379	2379	2 supplies" include, but are not limited to, adhesive, tape,
2380	2380	3 sandpaper, general purpose lubricants, cleaning solution,
2381	2381	4 latex gloves, and protective films.
2382	2382	5 Beginning January 1, 2010 and continuing through December
2383	2383	6 31, 2023, this exemption applies only to the transfer of
2384	2384	7 qualifying tangible personal property incident to the
2385	2385	8 modification, refurbishment, completion, replacement, repair,
2386	2386	9 or maintenance of an aircraft by persons who (i) hold an Air
2387	2387	10 Agency Certificate and are empowered to operate an approved
2388	2388	11 repair station by the Federal Aviation Administration, (ii)
2389	2389	12 have a Class IV Rating, and (iii) conduct operations in
2390	2390	13 accordance with Part 145 of the Federal Aviation Regulations.
2391	2391	14 The exemption does not include aircraft operated by a
2392	2392	15 commercial air carrier providing scheduled passenger air
2393	2393	16 service pursuant to authority issued under Part 121 or Part
2394	2394	17 129 of the Federal Aviation Regulations. From January 1, 2024
2395	2395	18 through December 31, 2029, this exemption applies only to the
2396	2396	19 transfer of qualifying tangible personal property incident to:
2397	2397	20 (A) the modification, refurbishment, completion, repair,
2398	2398	21 replacement, or maintenance of an aircraft by persons who (i)
2399	2399	22 hold an Air Agency Certificate and are empowered to operate an
2400	2400	23 approved repair station by the Federal Aviation
2401	2401	24 Administration, (ii) have a Class IV Rating, and (iii) conduct
2402	2402	25 operations in accordance with Part 145 of the Federal Aviation
2403	2403	26 Regulations; and (B) the modification, replacement, repair,
2404	2404
2405	2405
2406	2406
2407	2407
2408	2408
2409	2409	SB1178 - 66 - LRB104 08564 HLH 18616 b
2410	2410
2411	2411
2412	2412	SB1178- 67 -LRB104 08564 HLH 18616 b SB1178 - 67 - LRB104 08564 HLH 18616 b
2413	2413	SB1178 - 67 - LRB104 08564 HLH 18616 b
2414	2414	1 and maintenance of aircraft engines or power plants without
2415	2415	2 regard to whether or not those persons meet the qualifications
2416	2416	3 of item (A).
2417	2417	4 The changes made to this paragraph (29) by Public Act
2418	2418	5 98-534 are declarative of existing law. It is the intent of the
2419	2419	6 General Assembly that the exemption under this paragraph (29)
2420	2420	7 applies continuously from January 1, 2010 through December 31,
2421	2421	8 2024; however, no claim for credit or refund is allowed for
2422	2422	9 taxes paid as a result of the disallowance of this exemption on
2423	2423	10 or after January 1, 2015 and prior to February 5, 2020 (the
2424	2424	11 effective date of Public Act 101-629).
2425	2425	12 (30) Beginning January 1, 2017 and through December 31,
2426	2426	13 2026, menstrual pads, tampons, and menstrual cups.
2427	2427	14 (31) Tangible personal property transferred to a purchaser
2428	2428	15 who is exempt from tax by operation of federal law. This
2429	2429	16 paragraph is exempt from the provisions of Section 3-55.
2430	2430	17 (32) Qualified tangible personal property used in the
2431	2431	18 construction or operation of a data center that has been
2432	2432	19 granted a certificate of exemption by the Department of
2433	2433	20 Commerce and Economic Opportunity, whether that tangible
2434	2434	21 personal property is purchased by the owner, operator, or
2435	2435	22 tenant of the data center or by a contractor or subcontractor
2436	2436	23 of the owner, operator, or tenant. Data centers that would
2437	2437	24 have qualified for a certificate of exemption prior to January
2438	2438	25 1, 2020 had Public Act 101-31 been in effect, may apply for and
2439	2439	26 obtain an exemption for subsequent purchases of computer
2440	2440
2441	2441
2442	2442
2443	2443
2444	2444
2445	2445	SB1178 - 67 - LRB104 08564 HLH 18616 b
2446	2446
2447	2447
2448	2448	SB1178- 68 -LRB104 08564 HLH 18616 b SB1178 - 68 - LRB104 08564 HLH 18616 b
2449	2449	SB1178 - 68 - LRB104 08564 HLH 18616 b
2450	2450	1 equipment or enabling software purchased or leased to upgrade,
2451	2451	2 supplement, or replace computer equipment or enabling software
2452	2452	3 purchased or leased in the original investment that would have
2453	2453	4 qualified.
2454	2454	5 The Department of Commerce and Economic Opportunity shall
2455	2455	6 grant a certificate of exemption under this item (32) to
2456	2456	7 qualified data centers as defined by Section 605-1025 of the
2457	2457	8 Department of Commerce and Economic Opportunity Law of the
2458	2458	9 Civil Administrative Code of Illinois.
2459	2459	10 For the purposes of this item (32):
2460	2460	11 "Data center" means a building or a series of
2461	2461	12 buildings rehabilitated or constructed to house working
2462	2462	13 servers in one physical location or multiple sites within
2463	2463	14 the State of Illinois.
2464	2464	15 "Qualified tangible personal property" means:
2465	2465	16 electrical systems and equipment; climate control and
2466	2466	17 chilling equipment and systems; mechanical systems and
2467	2467	18 equipment; monitoring and secure systems; emergency
2468	2468	19 generators; hardware; computers; servers; data storage
2469	2469	20 devices; network connectivity equipment; racks; cabinets;
2470	2470	21 telecommunications cabling infrastructure; raised floor
2471	2471	22 systems; peripheral components or systems; software;
2472	2472	23 mechanical, electrical, or plumbing systems; battery
2473	2473	24 systems; cooling systems and towers; temperature control
2474	2474	25 systems; other cabling; and other data center
2475	2475	26 infrastructure equipment and systems necessary to operate
2476	2476
2477	2477
2478	2478
2479	2479
2480	2480
2481	2481	SB1178 - 68 - LRB104 08564 HLH 18616 b
2482	2482
2483	2483
2484	2484	SB1178- 69 -LRB104 08564 HLH 18616 b SB1178 - 69 - LRB104 08564 HLH 18616 b
2485	2485	SB1178 - 69 - LRB104 08564 HLH 18616 b
2486	2486	1 qualified tangible personal property, including fixtures;
2487	2487	2 and component parts of any of the foregoing, including
2488	2488	3 installation, maintenance, repair, refurbishment, and
2489	2489	4 replacement of qualified tangible personal property to
2490	2490	5 generate, transform, transmit, distribute, or manage
2491	2491	6 electricity necessary to operate qualified tangible
2492	2492	7 personal property; and all other tangible personal
2493	2493	8 property that is essential to the operations of a computer
2494	2494	9 data center. The term "qualified tangible personal
2495	2495	10 property" also includes building materials physically
2496	2496	11 incorporated into the qualifying data center. To document
2497	2497	12 the exemption allowed under this Section, the retailer
2498	2498	13 must obtain from the purchaser a copy of the certificate
2499	2499	14 of eligibility issued by the Department of Commerce and
2500	2500	15 Economic Opportunity.
2501	2501	16 This item (32) is exempt from the provisions of Section
2502	2502	17 3-55.
2503	2503	18 (33) Beginning July 1, 2022, breast pumps, breast pump
2504	2504	19 collection and storage supplies, and breast pump kits. This
2505	2505	20 item (33) is exempt from the provisions of Section 3-55. As
2506	2506	21 used in this item (33):
2507	2507	22 "Breast pump" means an electrically controlled or
2508	2508	23 manually controlled pump device designed or marketed to be
2509	2509	24 used to express milk from a human breast during lactation,
2510	2510	25 including the pump device and any battery, AC adapter, or
2511	2511	26 other power supply unit that is used to power the pump
2512	2512
2513	2513
2514	2514
2515	2515
2516	2516
2517	2517	SB1178 - 69 - LRB104 08564 HLH 18616 b
2518	2518
2519	2519
2520	2520	SB1178- 70 -LRB104 08564 HLH 18616 b SB1178 - 70 - LRB104 08564 HLH 18616 b
2521	2521	SB1178 - 70 - LRB104 08564 HLH 18616 b
2522	2522	1 device and is packaged and sold with the pump device at the
2523	2523	2 time of sale.
2524	2524	3 "Breast pump collection and storage supplies" means
2525	2525	4 items of tangible personal property designed or marketed
2526	2526	5 to be used in conjunction with a breast pump to collect
2527	2527	6 milk expressed from a human breast and to store collected
2528	2528	7 milk until it is ready for consumption.
2529	2529	8 "Breast pump collection and storage supplies"
2530	2530	9 includes, but is not limited to: breast shields and breast
2531	2531	10 shield connectors; breast pump tubes and tubing adapters;
2532	2532	11 breast pump valves and membranes; backflow protectors and
2533	2533	12 backflow protector adaptors; bottles and bottle caps
2534	2534	13 specific to the operation of the breast pump; and breast
2535	2535	14 milk storage bags.
2536	2536	15 "Breast pump collection and storage supplies" does not
2537	2537	16 include: (1) bottles and bottle caps not specific to the
2538	2538	17 operation of the breast pump; (2) breast pump travel bags
2539	2539	18 and other similar carrying accessories, including ice
2540	2540	19 packs, labels, and other similar products; (3) breast pump
2541	2541	20 cleaning supplies; (4) nursing bras, bra pads, breast
2542	2542	21 shells, and other similar products; and (5) creams,
2543	2543	22 ointments, and other similar products that relieve
2544	2544	23 breastfeeding-related symptoms or conditions of the
2545	2545	24 breasts or nipples, unless sold as part of a breast pump
2546	2546	25 kit that is pre-packaged by the breast pump manufacturer
2547	2547	26 or distributor.
2548	2548
2549	2549
2550	2550
2551	2551
2552	2552
2553	2553	SB1178 - 70 - LRB104 08564 HLH 18616 b
2554	2554
2555	2555
2556	2556	SB1178- 71 -LRB104 08564 HLH 18616 b SB1178 - 71 - LRB104 08564 HLH 18616 b
2557	2557	SB1178 - 71 - LRB104 08564 HLH 18616 b
2558	2558	1 "Breast pump kit" means a kit that: (1) contains no
2559	2559	2 more than a breast pump, breast pump collection and
2560	2560	3 storage supplies, a rechargeable battery for operating the
2561	2561	4 breast pump, a breastmilk cooler, bottle stands, ice
2562	2562	5 packs, and a breast pump carrying case; and (2) is
2563	2563	6 pre-packaged as a breast pump kit by the breast pump
2564	2564	7 manufacturer or distributor.
2565	2565	8 (34) Tangible personal property sold by or on behalf of
2566	2566	9 the State Treasurer pursuant to the Revised Uniform Unclaimed
2567	2567	10 Property Act. This item (34) is exempt from the provisions of
2568	2568	11 Section 3-55.
2569	2569	12 (35) Beginning on January 1, 2024, tangible personal
2570	2570	13 property purchased by an active duty member of the armed
2571	2571	14 forces of the United States who presents valid military
2572	2572	15 identification and purchases the property using a form of
2573	2573	16 payment where the federal government is the payor. The member
2574	2574	17 of the armed forces must complete, at the point of sale, a form
2575	2575	18 prescribed by the Department of Revenue documenting that the
2576	2576	19 transaction is eligible for the exemption under this
2577	2577	20 paragraph. Retailers must keep the form as documentation of
2578	2578	21 the exemption in their records for a period of not less than 6
2579	2579	22 years. "Armed forces of the United States" means the United
2580	2580	23 States Army, Navy, Air Force, Space Force, Marine Corps, or
2581	2581	24 Coast Guard. This paragraph is exempt from the provisions of
2582	2582	25 Section 3-55.
2583	2583	26 (36) Beginning July 1, 2024, home-delivered meals provided
2584	2584
2585	2585
2586	2586
2587	2587
2588	2588
2589	2589	SB1178 - 71 - LRB104 08564 HLH 18616 b
2590	2590
2591	2591
2592	2592	SB1178- 72 -LRB104 08564 HLH 18616 b SB1178 - 72 - LRB104 08564 HLH 18616 b
2593	2593	SB1178 - 72 - LRB104 08564 HLH 18616 b
2594	2594	1 to Medicare or Medicaid recipients when payment is made by an
2595	2595	2 intermediary, such as a Medicare Administrative Contractor, a
2596	2596	3 Managed Care Organization, or a Medicare Advantage
2597	2597	4 Organization, pursuant to a government contract. This
2598	2598	5 paragraph (36) (35) is exempt from the provisions of Section
2599	2599	6 3-55.
2600	2600	7 (37) (36) Beginning on January 1, 2026, as further defined
2601	2601	8 in Section 3-10, food prepared for immediate consumption and
2602	2602	9 transferred incident to a sale of service subject to this Act
2603	2603	10 or the Service Use Tax Act by an entity licensed under the
2604	2604	11 Hospital Licensing Act, the Nursing Home Care Act, the
2605	2605	12 Assisted Living and Shared Housing Act, the ID/DD Community
2606	2606	13 Care Act, the MC/DD Act, the Specialized Mental Health
2607	2607	14 Rehabilitation Act of 2013, or the Child Care Act of 1969 or by
2608	2608	15 an entity that holds a permit issued pursuant to the Life Care
2609	2609	16 Facilities Act. This item (37) (36) is exempt from the
2610	2610	17 provisions of Section 3-55.
2611	2611	18 (38) (37) Beginning on January 1, 2026, as further defined
2612	2612	19 in Section 3-10, food for human consumption that is to be
2613	2613	20 consumed off the premises where it is sold (other than
2614	2614	21 alcoholic beverages, food consisting of or infused with adult
2615	2615	22 use cannabis, soft drinks, candy, and food that has been
2616	2616	23 prepared for immediate consumption). This item (38) (37) is
2617	2617	24 exempt from the provisions of Section 3-55.
2618	2618	25 (39) (36) The lease of the following tangible personal
2619	2619	26 property:
2620	2620
2621	2621
2622	2622
2623	2623
2624	2624
2625	2625	SB1178 - 72 - LRB104 08564 HLH 18616 b
2626	2626
2627	2627
2628	2628	SB1178- 73 -LRB104 08564 HLH 18616 b SB1178 - 73 - LRB104 08564 HLH 18616 b
2629	2629	SB1178 - 73 - LRB104 08564 HLH 18616 b
2630	2630	1 (1) computer software transferred subject to a license
2631	2631	2 that meets the following requirements:
2632	2632	3 (A) it is evidenced by a written agreement signed
2633	2633	4 by the licensor and the customer;
2634	2634	5 (i) an electronic agreement in which the
2635	2635	6 customer accepts the license by means of an
2636	2636	7 electronic signature that is verifiable and can be
2637	2637	8 authenticated and is attached to or made part of
2638	2638	9 the license will comply with this requirement;
2639	2639	10 (ii) a license agreement in which the customer
2640	2640	11 electronically accepts the terms by clicking "I
2641	2641	12 agree" does not comply with this requirement;
2642	2642	13 (B) it restricts the customer's duplication and
2643	2643	14 use of the software;
2644	2644	15 (C) it prohibits the customer from licensing,
2645	2645	16 sublicensing, or transferring the software to a third
2646	2646	17 party (except to a related party) without the
2647	2647	18 permission and continued control of the licensor;
2648	2648	19 (D) the licensor has a policy of providing another
2649	2649	20 copy at minimal or no charge if the customer loses or
2650	2650	21 damages the software, or of permitting the licensee to
2651	2651	22 make and keep an archival copy, and such policy is
2652	2652	23 either stated in the license agreement, supported by
2653	2653	24 the licensor's books and records, or supported by a
2654	2654	25 notarized statement made under penalties of perjury by
2655	2655	26 the licensor; and
2656	2656
2657	2657
2658	2658
2659	2659
2660	2660
2661	2661	SB1178 - 73 - LRB104 08564 HLH 18616 b
2662	2662
2663	2663
2664	2664	SB1178- 74 -LRB104 08564 HLH 18616 b SB1178 - 74 - LRB104 08564 HLH 18616 b
2665	2665	SB1178 - 74 - LRB104 08564 HLH 18616 b
2666	2666	1 (E) the customer must destroy or return all copies
2667	2667	2 of the software to the licensor at the end of the
2668	2668	3 license period; this provision is deemed to be met, in
2669	2669	4 the case of a perpetual license, without being set
2670	2670	5 forth in the license agreement; and
2671	2671	6 (2) property that is subject to a tax on lease
2672	2672	7 receipts imposed by a home rule unit of local government
2673	2673	8 if the ordinance imposing that tax was adopted prior to
2674	2674	9 January 1, 2023.
2675	2675	10 (40) Tangible personal property that is (i) purchased by a
2676	2676	11 developer who has been awarded a certificate of exemption
2677	2677	12 under this paragraph (40) by the Department of Commerce and
2678	2678	13 Economic Opportunity and (ii) used to rehabilitate brownfield
2679	2679	14 or grayfield property, as defined in Section 246 of the
2680	2680	15 Illinois Income Tax Act, after remediation has occurred. The
2681	2681	16 Department of Commerce and Economic Opportunity shall award
2682	2682	17 certificates of exemption under this paragraph (40) for
2683	2683	18 property that meets the criteria under this paragraph (40).
2684	2684	19 This paragraph is exempt from the provisions of Section 3-55.
2685	2685	20 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
2686	2686	21 Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2687	2687	22 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
2688	2688	23 Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
2689	2689	24 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
2690	2690	25 103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
2691	2691	26 7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995,
2692	2692
2693	2693
2694	2694
2695	2695
2696	2696
2697	2697	SB1178 - 74 - LRB104 08564 HLH 18616 b
2698	2698
2699	2699
2700	2700	SB1178- 75 -LRB104 08564 HLH 18616 b SB1178 - 75 - LRB104 08564 HLH 18616 b
2701	2701	SB1178 - 75 - LRB104 08564 HLH 18616 b
2702	2702	1 eff. 8-9-24; revised 11-26-24.)
2703	2703	2 Section 25. The Retailers' Occupation Tax Act is amended
2704	2704	3 by changing Section 2-5 as follows:
2705	2705	4 (35 ILCS 120/2-5)
2706	2706	5 Sec. 2-5. Exemptions. Gross receipts from proceeds from
2707	2707	6 the sale, which, on and after January 1, 2025, includes the
2708	2708	7 lease, of the following tangible personal property are exempt
2709	2709	8 from the tax imposed by this Act:
2710	2710	9 (1) Farm chemicals.
2711	2711	10 (2) Farm machinery and equipment, both new and used,
2712	2712	11 including that manufactured on special order, certified by
2713	2713	12 the purchaser to be used primarily for production
2714	2714	13 agriculture or State or federal agricultural programs,
2715	2715	14 including individual replacement parts for the machinery
2716	2716	15 and equipment, including machinery and equipment purchased
2717	2717	16 for lease, and including implements of husbandry defined
2718	2718	17 in Section 1-130 of the Illinois Vehicle Code, farm
2719	2719	18 machinery and agricultural chemical and fertilizer
2720	2720	19 spreaders, and nurse wagons required to be registered
2721	2721	20 under Section 3-809 of the Illinois Vehicle Code, but
2722	2722	21 excluding other motor vehicles required to be registered
2723	2723	22 under the Illinois Vehicle Code. Horticultural polyhouses
2724	2724	23 or hoop houses used for propagating, growing, or
2725	2725	24 overwintering plants shall be considered farm machinery
2726	2726
2727	2727
2728	2728
2729	2729
2730	2730
2731	2731	SB1178 - 75 - LRB104 08564 HLH 18616 b
2732	2732
2733	2733
2734	2734	SB1178- 76 -LRB104 08564 HLH 18616 b SB1178 - 76 - LRB104 08564 HLH 18616 b
2735	2735	SB1178 - 76 - LRB104 08564 HLH 18616 b
2736	2736	1 and equipment under this item (2). Agricultural chemical
2737	2737	2 tender tanks and dry boxes shall include units sold
2738	2738	3 separately from a motor vehicle required to be licensed
2739	2739	4 and units sold mounted on a motor vehicle required to be
2740	2740	5 licensed, if the selling price of the tender is separately
2741	2741	6 stated.
2742	2742	7 Farm machinery and equipment shall include precision
2743	2743	8 farming equipment that is installed or purchased to be
2744	2744	9 installed on farm machinery and equipment including, but
2745	2745	10 not limited to, tractors, harvesters, sprayers, planters,
2746	2746	11 seeders, or spreaders. Precision farming equipment
2747	2747	12 includes, but is not limited to, soil testing sensors,
2748	2748	13 computers, monitors, software, global positioning and
2749	2749	14 mapping systems, and other such equipment.
2750	2750	15 Farm machinery and equipment also includes computers,
2751	2751	16 sensors, software, and related equipment used primarily in
2752	2752	17 the computer-assisted operation of production agriculture
2753	2753	18 facilities, equipment, and activities such as, but not
2754	2754	19 limited to, the collection, monitoring, and correlation of
2755	2755	20 animal and crop data for the purpose of formulating animal
2756	2756	21 diets and agricultural chemicals.
2757	2757	22 Beginning on January 1, 2024, farm machinery and
2758	2758	23 equipment also includes electrical power generation
2759	2759	24 equipment used primarily for production agriculture.
2760	2760	25 This item (2) is exempt from the provisions of Section
2761	2761	26 2-70.
2762	2762
2763	2763
2764	2764
2765	2765
2766	2766
2767	2767	SB1178 - 76 - LRB104 08564 HLH 18616 b
2768	2768
2769	2769
2770	2770	SB1178- 77 -LRB104 08564 HLH 18616 b SB1178 - 77 - LRB104 08564 HLH 18616 b
2771	2771	SB1178 - 77 - LRB104 08564 HLH 18616 b
2772	2772	1 (3) Until July 1, 2003, distillation machinery and
2773	2773	2 equipment, sold as a unit or kit, assembled or installed
2774	2774	3 by the retailer, certified by the user to be used only for
2775	2775	4 the production of ethyl alcohol that will be used for
2776	2776	5 consumption as motor fuel or as a component of motor fuel
2777	2777	6 for the personal use of the user, and not subject to sale
2778	2778	7 or resale.
2779	2779	8 (4) Until July 1, 2003 and beginning again September
2780	2780	9 1, 2004 through August 30, 2014, graphic arts machinery
2781	2781	10 and equipment, including repair and replacement parts,
2782	2782	11 both new and used, and including that manufactured on
2783	2783	12 special order or purchased for lease, certified by the
2784	2784	13 purchaser to be used primarily for graphic arts
2785	2785	14 production. Equipment includes chemicals or chemicals
2786	2786	15 acting as catalysts but only if the chemicals or chemicals
2787	2787	16 acting as catalysts effect a direct and immediate change
2788	2788	17 upon a graphic arts product. Beginning on July 1, 2017,
2789	2789	18 graphic arts machinery and equipment is included in the
2790	2790	19 manufacturing and assembling machinery and equipment
2791	2791	20 exemption under paragraph (14).
2792	2792	21 (5) A motor vehicle that is used for automobile
2793	2793	22 renting, as defined in the Automobile Renting Occupation
2794	2794	23 and Use Tax Act. This paragraph is exempt from the
2795	2795	24 provisions of Section 2-70.
2796	2796	25 (6) Personal property sold by a teacher-sponsored
2797	2797	26 student organization affiliated with an elementary or
2798	2798
2799	2799
2800	2800
2801	2801
2802	2802
2803	2803	SB1178 - 77 - LRB104 08564 HLH 18616 b
2804	2804
2805	2805
2806	2806	SB1178- 78 -LRB104 08564 HLH 18616 b SB1178 - 78 - LRB104 08564 HLH 18616 b
2807	2807	SB1178 - 78 - LRB104 08564 HLH 18616 b
2808	2808	1 secondary school located in Illinois.
2809	2809	2 (7) Until July 1, 2003, proceeds of that portion of
2810	2810	3 the selling price of a passenger car the sale of which is
2811	2811	4 subject to the Replacement Vehicle Tax.
2812	2812	5 (8) Personal property sold to an Illinois county fair
2813	2813	6 association for use in conducting, operating, or promoting
2814	2814	7 the county fair.
2815	2815	8 (9) Personal property sold to a not-for-profit arts or
2816	2816	9 cultural organization that establishes, by proof required
2817	2817	10 by the Department by rule, that it has received an
2818	2818	11 exemption under Section 501(c)(3) of the Internal Revenue
2819	2819	12 Code and that is organized and operated primarily for the
2820	2820	13 presentation or support of arts or cultural programming,
2821	2821	14 activities, or services. These organizations include, but
2822	2822	15 are not limited to, music and dramatic arts organizations
2823	2823	16 such as symphony orchestras and theatrical groups, arts
2824	2824	17 and cultural service organizations, local arts councils,
2825	2825	18 visual arts organizations, and media arts organizations.
2826	2826	19 On and after July 1, 2001 (the effective date of Public Act
2827	2827	20 92-35), however, an entity otherwise eligible for this
2828	2828	21 exemption shall not make tax-free purchases unless it has
2829	2829	22 an active identification number issued by the Department.
2830	2830	23 (10) Personal property sold by a corporation, society,
2831	2831	24 association, foundation, institution, or organization,
2832	2832	25 other than a limited liability company, that is organized
2833	2833	26 and operated as a not-for-profit service enterprise for
2834	2834
2835	2835
2836	2836
2837	2837
2838	2838
2839	2839	SB1178 - 78 - LRB104 08564 HLH 18616 b
2840	2840
2841	2841
2842	2842	SB1178- 79 -LRB104 08564 HLH 18616 b SB1178 - 79 - LRB104 08564 HLH 18616 b
2843	2843	SB1178 - 79 - LRB104 08564 HLH 18616 b
2844	2844	1 the benefit of persons 65 years of age or older if the
2845	2845	2 personal property was not purchased by the enterprise for
2846	2846	3 the purpose of resale by the enterprise.
2847	2847	4 (11) Except as otherwise provided in this Section,
2848	2848	5 personal property sold to a governmental body, to a
2849	2849	6 corporation, society, association, foundation, or
2850	2850	7 institution organized and operated exclusively for
2851	2851	8 charitable, religious, or educational purposes, or to a
2852	2852	9 not-for-profit corporation, society, association,
2853	2853	10 foundation, institution, or organization that has no
2854	2854	11 compensated officers or employees and that is organized
2855	2855	12 and operated primarily for the recreation of persons 55
2856	2856	13 years of age or older. A limited liability company may
2857	2857	14 qualify for the exemption under this paragraph only if the
2858	2858	15 limited liability company is organized and operated
2859	2859	16 exclusively for educational purposes. On and after July 1,
2860	2860	17 1987, however, no entity otherwise eligible for this
2861	2861	18 exemption shall make tax-free purchases unless it has an
2862	2862	19 active identification number issued by the Department.
2863	2863	20 (12) (Blank).
2864	2864	21 (12-5) On and after July 1, 2003 and through June 30,
2865	2865	22 2004, motor vehicles of the second division with a gross
2866	2866	23 vehicle weight in excess of 8,000 pounds that are subject
2867	2867	24 to the commercial distribution fee imposed under Section
2868	2868	25 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
2869	2869	26 2004 and through June 30, 2005, the use in this State of
2870	2870
2871	2871
2872	2872
2873	2873
2874	2874
2875	2875	SB1178 - 79 - LRB104 08564 HLH 18616 b
2876	2876
2877	2877
2878	2878	SB1178- 80 -LRB104 08564 HLH 18616 b SB1178 - 80 - LRB104 08564 HLH 18616 b
2879	2879	SB1178 - 80 - LRB104 08564 HLH 18616 b
2880	2880	1 motor vehicles of the second division: (i) with a gross
2881	2881	2 vehicle weight rating in excess of 8,000 pounds; (ii) that
2882	2882	3 are subject to the commercial distribution fee imposed
2883	2883	4 under Section 3-815.1 of the Illinois Vehicle Code; and
2884	2884	5 (iii) that are primarily used for commercial purposes.
2885	2885	6 Through June 30, 2005, this exemption applies to repair
2886	2886	7 and replacement parts added after the initial purchase of
2887	2887	8 such a motor vehicle if that motor vehicle is used in a
2888	2888	9 manner that would qualify for the rolling stock exemption
2889	2889	10 otherwise provided for in this Act. For purposes of this
2890	2890	11 paragraph, "used for commercial purposes" means the
2891	2891	12 transportation of persons or property in furtherance of
2892	2892	13 any commercial or industrial enterprise whether for-hire
2893	2893	14 or not.
2894	2894	15 (13) Proceeds from sales to owners or lessors,
2895	2895	16 lessees, or shippers of tangible personal property that is
2896	2896	17 utilized by interstate carriers for hire for use as
2897	2897	18 rolling stock moving in interstate commerce and equipment
2898	2898	19 operated by a telecommunications provider, licensed as a
2899	2899	20 common carrier by the Federal Communications Commission,
2900	2900	21 which is permanently installed in or affixed to aircraft
2901	2901	22 moving in interstate commerce.
2902	2902	23 (14) Machinery and equipment that will be used by the
2903	2903	24 purchaser, or a lessee of the purchaser, primarily in the
2904	2904	25 process of manufacturing or assembling tangible personal
2905	2905	26 property for wholesale or retail sale or lease, whether
2906	2906
2907	2907
2908	2908
2909	2909
2910	2910
2911	2911	SB1178 - 80 - LRB104 08564 HLH 18616 b
2912	2912
2913	2913
2914	2914	SB1178- 81 -LRB104 08564 HLH 18616 b SB1178 - 81 - LRB104 08564 HLH 18616 b
2915	2915	SB1178 - 81 - LRB104 08564 HLH 18616 b
2916	2916	1 the sale or lease is made directly by the manufacturer or
2917	2917	2 by some other person, whether the materials used in the
2918	2918	3 process are owned by the manufacturer or some other
2919	2919	4 person, or whether the sale or lease is made apart from or
2920	2920	5 as an incident to the seller's engaging in the service
2921	2921	6 occupation of producing machines, tools, dies, jigs,
2922	2922	7 patterns, gauges, or other similar items of no commercial
2923	2923	8 value on special order for a particular purchaser. The
2924	2924	9 exemption provided by this paragraph (14) does not include
2925	2925	10 machinery and equipment used in (i) the generation of
2926	2926	11 electricity for wholesale or retail sale; (ii) the
2927	2927	12 generation or treatment of natural or artificial gas for
2928	2928	13 wholesale or retail sale that is delivered to customers
2929	2929	14 through pipes, pipelines, or mains; or (iii) the treatment
2930	2930	15 of water for wholesale or retail sale that is delivered to
2931	2931	16 customers through pipes, pipelines, or mains. The
2932	2932	17 provisions of Public Act 98-583 are declaratory of
2933	2933	18 existing law as to the meaning and scope of this
2934	2934	19 exemption. Beginning on July 1, 2017, the exemption
2935	2935	20 provided by this paragraph (14) includes, but is not
2936	2936	21 limited to, graphic arts machinery and equipment, as
2937	2937	22 defined in paragraph (4) of this Section.
2938	2938	23 (15) Proceeds of mandatory service charges separately
2939	2939	24 stated on customers' bills for purchase and consumption of
2940	2940	25 food and beverages, to the extent that the proceeds of the
2941	2941	26 service charge are in fact turned over as tips or as a
2942	2942
2943	2943
2944	2944
2945	2945
2946	2946
2947	2947	SB1178 - 81 - LRB104 08564 HLH 18616 b
2948	2948
2949	2949
2950	2950	SB1178- 82 -LRB104 08564 HLH 18616 b SB1178 - 82 - LRB104 08564 HLH 18616 b
2951	2951	SB1178 - 82 - LRB104 08564 HLH 18616 b
2952	2952	1 substitute for tips to the employees who participate
2953	2953	2 directly in preparing, serving, hosting or cleaning up the
2954	2954	3 food or beverage function with respect to which the
2955	2955	4 service charge is imposed.
2956	2956	5 (16) Tangible personal property sold to a purchaser if
2957	2957	6 the purchaser is exempt from use tax by operation of
2958	2958	7 federal law. This paragraph is exempt from the provisions
2959	2959	8 of Section 2-70.
2960	2960	9 (17) Tangible personal property sold to a common
2961	2961	10 carrier by rail or motor that receives the physical
2962	2962	11 possession of the property in Illinois and that transports
2963	2963	12 the property, or shares with another common carrier in the
2964	2964	13 transportation of the property, out of Illinois on a
2965	2965	14 standard uniform bill of lading showing the seller of the
2966	2966	15 property as the shipper or consignor of the property to a
2967	2967	16 destination outside Illinois, for use outside Illinois.
2968	2968	17 (18) Legal tender, currency, medallions, or gold or
2969	2969	18 silver coinage issued by the State of Illinois, the
2970	2970	19 government of the United States of America, or the
2971	2971	20 government of any foreign country, and bullion.
2972	2972	21 (19) Until July 1, 2003, oil field exploration,
2973	2973	22 drilling, and production equipment, including (i) rigs and
2974	2974	23 parts of rigs, rotary rigs, cable tool rigs, and workover
2975	2975	24 rigs, (ii) pipe and tubular goods, including casing and
2976	2976	25 drill strings, (iii) pumps and pump-jack units, (iv)
2977	2977	26 storage tanks and flow lines, (v) any individual
2978	2978
2979	2979
2980	2980
2981	2981
2982	2982
2983	2983	SB1178 - 82 - LRB104 08564 HLH 18616 b
2984	2984
2985	2985
2986	2986	SB1178- 83 -LRB104 08564 HLH 18616 b SB1178 - 83 - LRB104 08564 HLH 18616 b
2987	2987	SB1178 - 83 - LRB104 08564 HLH 18616 b
2988	2988	1 replacement part for oil field exploration, drilling, and
2989	2989	2 production equipment, and (vi) machinery and equipment
2990	2990	3 purchased for lease; but excluding motor vehicles required
2991	2991	4 to be registered under the Illinois Vehicle Code.
2992	2992	5 (20) Photoprocessing machinery and equipment,
2993	2993	6 including repair and replacement parts, both new and used,
2994	2994	7 including that manufactured on special order, certified by
2995	2995	8 the purchaser to be used primarily for photoprocessing,
2996	2996	9 and including photoprocessing machinery and equipment
2997	2997	10 purchased for lease.
2998	2998	11 (21) Until July 1, 2028, coal and aggregate
2999	2999	12 exploration, mining, off-highway hauling, processing,
3000	3000	13 maintenance, and reclamation equipment, including
3001	3001	14 replacement parts and equipment, and including equipment
3002	3002	15 purchased for lease, but excluding motor vehicles required
3003	3003	16 to be registered under the Illinois Vehicle Code. The
3004	3004	17 changes made to this Section by Public Act 97-767 apply on
3005	3005	18 and after July 1, 2003, but no claim for credit or refund
3006	3006	19 is allowed on or after August 16, 2013 (the effective date
3007	3007	20 of Public Act 98-456) for such taxes paid during the
3008	3008	21 period beginning July 1, 2003 and ending on August 16,
3009	3009	22 2013 (the effective date of Public Act 98-456).
3010	3010	23 (22) Until June 30, 2013, fuel and petroleum products
3011	3011	24 sold to or used by an air carrier, certified by the carrier
3012	3012	25 to be used for consumption, shipment, or storage in the
3013	3013	26 conduct of its business as an air common carrier, for a
3014	3014
3015	3015
3016	3016
3017	3017
3018	3018
3019	3019	SB1178 - 83 - LRB104 08564 HLH 18616 b
3020	3020
3021	3021
3022	3022	SB1178- 84 -LRB104 08564 HLH 18616 b SB1178 - 84 - LRB104 08564 HLH 18616 b
3023	3023	SB1178 - 84 - LRB104 08564 HLH 18616 b
3024	3024	1 flight destined for or returning from a location or
3025	3025	2 locations outside the United States without regard to
3026	3026	3 previous or subsequent domestic stopovers.
3027	3027	4 Beginning July 1, 2013, fuel and petroleum products
3028	3028	5 sold to or used by an air carrier, certified by the carrier
3029	3029	6 to be used for consumption, shipment, or storage in the
3030	3030	7 conduct of its business as an air common carrier, for a
3031	3031	8 flight that (i) is engaged in foreign trade or is engaged
3032	3032	9 in trade between the United States and any of its
3033	3033	10 possessions and (ii) transports at least one individual or
3034	3034	11 package for hire from the city of origination to the city
3035	3035	12 of final destination on the same aircraft, without regard
3036	3036	13 to a change in the flight number of that aircraft.
3037	3037	14 (23) A transaction in which the purchase order is
3038	3038	15 received by a florist who is located outside Illinois, but
3039	3039	16 who has a florist located in Illinois deliver the property
3040	3040	17 to the purchaser or the purchaser's donee in Illinois.
3041	3041	18 (24) Fuel consumed or used in the operation of ships,
3042	3042	19 barges, or vessels that are used primarily in or for the
3043	3043	20 transportation of property or the conveyance of persons
3044	3044	21 for hire on rivers bordering on this State if the fuel is
3045	3045	22 delivered by the seller to the purchaser's barge, ship, or
3046	3046	23 vessel while it is afloat upon that bordering river.
3047	3047	24 (25) Except as provided in item (25-5) of this
3048	3048	25 Section, a motor vehicle sold in this State to a
3049	3049	26 nonresident even though the motor vehicle is delivered to
3050	3050
3051	3051
3052	3052
3053	3053
3054	3054
3055	3055	SB1178 - 84 - LRB104 08564 HLH 18616 b
3056	3056
3057	3057
3058	3058	SB1178- 85 -LRB104 08564 HLH 18616 b SB1178 - 85 - LRB104 08564 HLH 18616 b
3059	3059	SB1178 - 85 - LRB104 08564 HLH 18616 b
3060	3060	1 the nonresident in this State, if the motor vehicle is not
3061	3061	2 to be titled in this State, and if a drive-away permit is
3062	3062	3 issued to the motor vehicle as provided in Section 3-603
3063	3063	4 of the Illinois Vehicle Code or if the nonresident
3064	3064	5 purchaser has vehicle registration plates to transfer to
3065	3065	6 the motor vehicle upon returning to his or her home state.
3066	3066	7 The issuance of the drive-away permit or having the
3067	3067	8 out-of-state registration plates to be transferred is
3068	3068	9 prima facie evidence that the motor vehicle will not be
3069	3069	10 titled in this State.
3070	3070	11 (25-5) The exemption under item (25) does not apply if
3071	3071	12 the state in which the motor vehicle will be titled does
3072	3072	13 not allow a reciprocal exemption for a motor vehicle sold
3073	3073	14 and delivered in that state to an Illinois resident but
3074	3074	15 titled in Illinois. The tax collected under this Act on
3075	3075	16 the sale of a motor vehicle in this State to a resident of
3076	3076	17 another state that does not allow a reciprocal exemption
3077	3077	18 shall be imposed at a rate equal to the state's rate of tax
3078	3078	19 on taxable property in the state in which the purchaser is
3079	3079	20 a resident, except that the tax shall not exceed the tax
3080	3080	21 that would otherwise be imposed under this Act. At the
3081	3081	22 time of the sale, the purchaser shall execute a statement,
3082	3082	23 signed under penalty of perjury, of his or her intent to
3083	3083	24 title the vehicle in the state in which the purchaser is a
3084	3084	25 resident within 30 days after the sale and of the fact of
3085	3085	26 the payment to the State of Illinois of tax in an amount
3086	3086
3087	3087
3088	3088
3089	3089
3090	3090
3091	3091	SB1178 - 85 - LRB104 08564 HLH 18616 b
3092	3092
3093	3093
3094	3094	SB1178- 86 -LRB104 08564 HLH 18616 b SB1178 - 86 - LRB104 08564 HLH 18616 b
3095	3095	SB1178 - 86 - LRB104 08564 HLH 18616 b
3096	3096	1 equivalent to the state's rate of tax on taxable property
3097	3097	2 in his or her state of residence and shall submit the
3098	3098	3 statement to the appropriate tax collection agency in his
3099	3099	4 or her state of residence. In addition, the retailer must
3100	3100	5 retain a signed copy of the statement in his or her
3101	3101	6 records. Nothing in this item shall be construed to
3102	3102	7 require the removal of the vehicle from this state
3103	3103	8 following the filing of an intent to title the vehicle in
3104	3104	9 the purchaser's state of residence if the purchaser titles
3105	3105	10 the vehicle in his or her state of residence within 30 days
3106	3106	11 after the date of sale. The tax collected under this Act in
3107	3107	12 accordance with this item (25-5) shall be proportionately
3108	3108	13 distributed as if the tax were collected at the 6.25%
3109	3109	14 general rate imposed under this Act.
3110	3110	15 (25-7) Beginning on July 1, 2007, no tax is imposed
3111	3111	16 under this Act on the sale of an aircraft, as defined in
3112	3112	17 Section 3 of the Illinois Aeronautics Act, if all of the
3113	3113	18 following conditions are met:
3114	3114	19 (1) the aircraft leaves this State within 15 days
3115	3115	20 after the later of either the issuance of the final
3116	3116	21 billing for the sale of the aircraft, or the
3117	3117	22 authorized approval for return to service, completion
3118	3118	23 of the maintenance record entry, and completion of the
3119	3119	24 test flight and ground test for inspection, as
3120	3120	25 required by 14 CFR 91.407;
3121	3121	26 (2) the aircraft is not based or registered in
3122	3122
3123	3123
3124	3124
3125	3125
3126	3126
3127	3127	SB1178 - 86 - LRB104 08564 HLH 18616 b
3128	3128
3129	3129
3130	3130	SB1178- 87 -LRB104 08564 HLH 18616 b SB1178 - 87 - LRB104 08564 HLH 18616 b
3131	3131	SB1178 - 87 - LRB104 08564 HLH 18616 b
3132	3132	1 this State after the sale of the aircraft; and
3133	3133	2 (3) the seller retains in his or her books and
3134	3134	3 records and provides to the Department a signed and
3135	3135	4 dated certification from the purchaser, on a form
3136	3136	5 prescribed by the Department, certifying that the
3137	3137	6 requirements of this item (25-7) are met. The
3138	3138	7 certificate must also include the name and address of
3139	3139	8 the purchaser, the address of the location where the
3140	3140	9 aircraft is to be titled or registered, the address of
3141	3141	10 the primary physical location of the aircraft, and
3142	3142	11 other information that the Department may reasonably
3143	3143	12 require.
3144	3144	13 For purposes of this item (25-7):
3145	3145	14 "Based in this State" means hangared, stored, or
3146	3146	15 otherwise used, excluding post-sale customizations as
3147	3147	16 defined in this Section, for 10 or more days in each
3148	3148	17 12-month period immediately following the date of the sale
3149	3149	18 of the aircraft.
3150	3150	19 "Registered in this State" means an aircraft
3151	3151	20 registered with the Department of Transportation,
3152	3152	21 Aeronautics Division, or titled or registered with the
3153	3153	22 Federal Aviation Administration to an address located in
3154	3154	23 this State.
3155	3155	24 This paragraph (25-7) is exempt from the provisions of
3156	3156	25 Section 2-70.
3157	3157	26 (26) Semen used for artificial insemination of
3158	3158
3159	3159
3160	3160
3161	3161
3162	3162
3163	3163	SB1178 - 87 - LRB104 08564 HLH 18616 b
3164	3164
3165	3165
3166	3166	SB1178- 88 -LRB104 08564 HLH 18616 b SB1178 - 88 - LRB104 08564 HLH 18616 b
3167	3167	SB1178 - 88 - LRB104 08564 HLH 18616 b
3168	3168	1 livestock for direct agricultural production.
3169	3169	2 (27) Horses, or interests in horses, registered with
3170	3170	3 and meeting the requirements of any of the Arabian Horse
3171	3171	4 Club Registry of America, Appaloosa Horse Club, American
3172	3172	5 Quarter Horse Association, United States Trotting
3173	3173	6 Association, or Jockey Club, as appropriate, used for
3174	3174	7 purposes of breeding or racing for prizes. This item (27)
3175	3175	8 is exempt from the provisions of Section 2-70, and the
3176	3176	9 exemption provided for under this item (27) applies for
3177	3177	10 all periods beginning May 30, 1995, but no claim for
3178	3178	11 credit or refund is allowed on or after January 1, 2008
3179	3179	12 (the effective date of Public Act 95-88) for such taxes
3180	3180	13 paid during the period beginning May 30, 2000 and ending
3181	3181	14 on January 1, 2008 (the effective date of Public Act
3182	3182	15 95-88).
3183	3183	16 (28) Computers and communications equipment utilized
3184	3184	17 for any hospital purpose and equipment used in the
3185	3185	18 diagnosis, analysis, or treatment of hospital patients
3186	3186	19 sold to a lessor who leases the equipment, under a lease of
3187	3187	20 one year or longer executed or in effect at the time of the
3188	3188	21 purchase, to a hospital that has been issued an active tax
3189	3189	22 exemption identification number by the Department under
3190	3190	23 Section 1g of this Act.
3191	3191	24 (29) Personal property sold to a lessor who leases the
3192	3192	25 property, under a lease of one year or longer executed or
3193	3193	26 in effect at the time of the purchase, to a governmental
3194	3194
3195	3195
3196	3196
3197	3197
3198	3198
3199	3199	SB1178 - 88 - LRB104 08564 HLH 18616 b
3200	3200
3201	3201
3202	3202	SB1178- 89 -LRB104 08564 HLH 18616 b SB1178 - 89 - LRB104 08564 HLH 18616 b
3203	3203	SB1178 - 89 - LRB104 08564 HLH 18616 b
3204	3204	1 body that has been issued an active tax exemption
3205	3205	2 identification number by the Department under Section 1g
3206	3206	3 of this Act.
3207	3207	4 (30) Beginning with taxable years ending on or after
3208	3208	5 December 31, 1995 and ending with taxable years ending on
3209	3209	6 or before December 31, 2004, personal property that is
3210	3210	7 donated for disaster relief to be used in a State or
3211	3211	8 federally declared disaster area in Illinois or bordering
3212	3212	9 Illinois by a manufacturer or retailer that is registered
3213	3213	10 in this State to a corporation, society, association,
3214	3214	11 foundation, or institution that has been issued a sales
3215	3215	12 tax exemption identification number by the Department that
3216	3216	13 assists victims of the disaster who reside within the
3217	3217	14 declared disaster area.
3218	3218	15 (31) Beginning with taxable years ending on or after
3219	3219	16 December 31, 1995 and ending with taxable years ending on
3220	3220	17 or before December 31, 2004, personal property that is
3221	3221	18 used in the performance of infrastructure repairs in this
3222	3222	19 State, including, but not limited to, municipal roads and
3223	3223	20 streets, access roads, bridges, sidewalks, waste disposal
3224	3224	21 systems, water and sewer line extensions, water
3225	3225	22 distribution and purification facilities, storm water
3226	3226	23 drainage and retention facilities, and sewage treatment
3227	3227	24 facilities, resulting from a State or federally declared
3228	3228	25 disaster in Illinois or bordering Illinois when such
3229	3229	26 repairs are initiated on facilities located in the
3230	3230
3231	3231
3232	3232
3233	3233
3234	3234
3235	3235	SB1178 - 89 - LRB104 08564 HLH 18616 b
3236	3236
3237	3237
3238	3238	SB1178- 90 -LRB104 08564 HLH 18616 b SB1178 - 90 - LRB104 08564 HLH 18616 b
3239	3239	SB1178 - 90 - LRB104 08564 HLH 18616 b
3240	3240	1 declared disaster area within 6 months after the disaster.
3241	3241	2 (32) Beginning July 1, 1999, game or game birds sold
3242	3242	3 at a "game breeding and hunting preserve area" as that
3243	3243	4 term is used in the Wildlife Code. This paragraph is
3244	3244	5 exempt from the provisions of Section 2-70.
3245	3245	6 (33) A motor vehicle, as that term is defined in
3246	3246	7 Section 1-146 of the Illinois Vehicle Code, that is
3247	3247	8 donated to a corporation, limited liability company,
3248	3248	9 society, association, foundation, or institution that is
3249	3249	10 determined by the Department to be organized and operated
3250	3250	11 exclusively for educational purposes. For purposes of this
3251	3251	12 exemption, "a corporation, limited liability company,
3252	3252	13 society, association, foundation, or institution organized
3253	3253	14 and operated exclusively for educational purposes" means
3254	3254	15 all tax-supported public schools, private schools that
3255	3255	16 offer systematic instruction in useful branches of
3256	3256	17 learning by methods common to public schools and that
3257	3257	18 compare favorably in their scope and intensity with the
3258	3258	19 course of study presented in tax-supported schools, and
3259	3259	20 vocational or technical schools or institutes organized
3260	3260	21 and operated exclusively to provide a course of study of
3261	3261	22 not less than 6 weeks duration and designed to prepare
3262	3262	23 individuals to follow a trade or to pursue a manual,
3263	3263	24 technical, mechanical, industrial, business, or commercial
3264	3264	25 occupation.
3265	3265	26 (34) Beginning January 1, 2000, personal property,
3266	3266
3267	3267
3268	3268
3269	3269
3270	3270
3271	3271	SB1178 - 90 - LRB104 08564 HLH 18616 b
3272	3272
3273	3273
3274	3274	SB1178- 91 -LRB104 08564 HLH 18616 b SB1178 - 91 - LRB104 08564 HLH 18616 b
3275	3275	SB1178 - 91 - LRB104 08564 HLH 18616 b
3276	3276	1 including food, purchased through fundraising events for
3277	3277	2 the benefit of a public or private elementary or secondary
3278	3278	3 school, a group of those schools, or one or more school
3279	3279	4 districts if the events are sponsored by an entity
3280	3280	5 recognized by the school district that consists primarily
3281	3281	6 of volunteers and includes parents and teachers of the
3282	3282	7 school children. This paragraph does not apply to
3283	3283	8 fundraising events (i) for the benefit of private home
3284	3284	9 instruction or (ii) for which the fundraising entity
3285	3285	10 purchases the personal property sold at the events from
3286	3286	11 another individual or entity that sold the property for
3287	3287	12 the purpose of resale by the fundraising entity and that
3288	3288	13 profits from the sale to the fundraising entity. This
3289	3289	14 paragraph is exempt from the provisions of Section 2-70.
3290	3290	15 (35) Beginning January 1, 2000 and through December
3291	3291	16 31, 2001, new or used automatic vending machines that
3292	3292	17 prepare and serve hot food and beverages, including
3293	3293	18 coffee, soup, and other items, and replacement parts for
3294	3294	19 these machines. Beginning January 1, 2002 and through June
3295	3295	20 30, 2003, machines and parts for machines used in
3296	3296	21 commercial, coin-operated amusement and vending business
3297	3297	22 if a use or occupation tax is paid on the gross receipts
3298	3298	23 derived from the use of the commercial, coin-operated
3299	3299	24 amusement and vending machines. This paragraph is exempt
3300	3300	25 from the provisions of Section 2-70.
3301	3301	26 (35-5) Beginning August 23, 2001 and through June 30,
3302	3302
3303	3303
3304	3304
3305	3305
3306	3306
3307	3307	SB1178 - 91 - LRB104 08564 HLH 18616 b
3308	3308
3309	3309
3310	3310	SB1178- 92 -LRB104 08564 HLH 18616 b SB1178 - 92 - LRB104 08564 HLH 18616 b
3311	3311	SB1178 - 92 - LRB104 08564 HLH 18616 b
3312	3312	1 2016, food for human consumption that is to be consumed
3313	3313	2 off the premises where it is sold (other than alcoholic
3314	3314	3 beverages, soft drinks, and food that has been prepared
3315	3315	4 for immediate consumption) and prescription and
3316	3316	5 nonprescription medicines, drugs, medical appliances, and
3317	3317	6 insulin, urine testing materials, syringes, and needles
3318	3318	7 used by diabetics, for human use, when purchased for use
3319	3319	8 by a person receiving medical assistance under Article V
3320	3320	9 of the Illinois Public Aid Code who resides in a licensed
3321	3321	10 long-term care facility, as defined in the Nursing Home
3322	3322	11 Care Act, or a licensed facility as defined in the ID/DD
3323	3323	12 Community Care Act, the MC/DD Act, or the Specialized
3324	3324	13 Mental Health Rehabilitation Act of 2013.
3325	3325	14 (36) Beginning August 2, 2001, computers and
3326	3326	15 communications equipment utilized for any hospital purpose
3327	3327	16 and equipment used in the diagnosis, analysis, or
3328	3328	17 treatment of hospital patients sold to a lessor who leases
3329	3329	18 the equipment, under a lease of one year or longer
3330	3330	19 executed or in effect at the time of the purchase, to a
3331	3331	20 hospital that has been issued an active tax exemption
3332	3332	21 identification number by the Department under Section 1g
3333	3333	22 of this Act. This paragraph is exempt from the provisions
3334	3334	23 of Section 2-70.
3335	3335	24 (37) Beginning August 2, 2001, personal property sold
3336	3336	25 to a lessor who leases the property, under a lease of one
3337	3337	26 year or longer executed or in effect at the time of the
3338	3338
3339	3339
3340	3340
3341	3341
3342	3342
3343	3343	SB1178 - 92 - LRB104 08564 HLH 18616 b
3344	3344
3345	3345
3346	3346	SB1178- 93 -LRB104 08564 HLH 18616 b SB1178 - 93 - LRB104 08564 HLH 18616 b
3347	3347	SB1178 - 93 - LRB104 08564 HLH 18616 b
3348	3348	1 purchase, to a governmental body that has been issued an
3349	3349	2 active tax exemption identification number by the
3350	3350	3 Department under Section 1g of this Act. This paragraph is
3351	3351	4 exempt from the provisions of Section 2-70.
3352	3352	5 (38) Beginning on January 1, 2002 and through June 30,
3353	3353	6 2016, tangible personal property purchased from an
3354	3354	7 Illinois retailer by a taxpayer engaged in centralized
3355	3355	8 purchasing activities in Illinois who will, upon receipt
3356	3356	9 of the property in Illinois, temporarily store the
3357	3357	10 property in Illinois (i) for the purpose of subsequently
3358	3358	11 transporting it outside this State for use or consumption
3359	3359	12 thereafter solely outside this State or (ii) for the
3360	3360	13 purpose of being processed, fabricated, or manufactured
3361	3361	14 into, attached to, or incorporated into other tangible
3362	3362	15 personal property to be transported outside this State and
3363	3363	16 thereafter used or consumed solely outside this State. The
3364	3364	17 Director of Revenue shall, pursuant to rules adopted in
3365	3365	18 accordance with the Illinois Administrative Procedure Act,
3366	3366	19 issue a permit to any taxpayer in good standing with the
3367	3367	20 Department who is eligible for the exemption under this
3368	3368	21 paragraph (38). The permit issued under this paragraph
3369	3369	22 (38) shall authorize the holder, to the extent and in the
3370	3370	23 manner specified in the rules adopted under this Act, to
3371	3371	24 purchase tangible personal property from a retailer exempt
3372	3372	25 from the taxes imposed by this Act. Taxpayers shall
3373	3373	26 maintain all necessary books and records to substantiate
3374	3374
3375	3375
3376	3376
3377	3377
3378	3378
3379	3379	SB1178 - 93 - LRB104 08564 HLH 18616 b
3380	3380
3381	3381
3382	3382	SB1178- 94 -LRB104 08564 HLH 18616 b SB1178 - 94 - LRB104 08564 HLH 18616 b
3383	3383	SB1178 - 94 - LRB104 08564 HLH 18616 b
3384	3384	1 the use and consumption of all such tangible personal
3385	3385	2 property outside of the State of Illinois.
3386	3386	3 (39) Beginning January 1, 2008, tangible personal
3387	3387	4 property used in the construction or maintenance of a
3388	3388	5 community water supply, as defined under Section 3.145 of
3389	3389	6 the Environmental Protection Act, that is operated by a
3390	3390	7 not-for-profit corporation that holds a valid water supply
3391	3391	8 permit issued under Title IV of the Environmental
3392	3392	9 Protection Act. This paragraph is exempt from the
3393	3393	10 provisions of Section 2-70.
3394	3394	11 (40) Beginning January 1, 2010 and continuing through
3395	3395	12 December 31, 2029, materials, parts, equipment,
3396	3396	13 components, and furnishings incorporated into or upon an
3397	3397	14 aircraft as part of the modification, refurbishment,
3398	3398	15 completion, replacement, repair, or maintenance of the
3399	3399	16 aircraft. This exemption includes consumable supplies used
3400	3400	17 in the modification, refurbishment, completion,
3401	3401	18 replacement, repair, and maintenance of aircraft. However,
3402	3402	19 until January 1, 2024, this exemption excludes any
3403	3403	20 materials, parts, equipment, components, and consumable
3404	3404	21 supplies used in the modification, replacement, repair,
3405	3405	22 and maintenance of aircraft engines or power plants,
3406	3406	23 whether such engines or power plants are installed or
3407	3407	24 uninstalled upon any such aircraft. "Consumable supplies"
3408	3408	25 include, but are not limited to, adhesive, tape,
3409	3409	26 sandpaper, general purpose lubricants, cleaning solution,
3410	3410
3411	3411
3412	3412
3413	3413
3414	3414
3415	3415	SB1178 - 94 - LRB104 08564 HLH 18616 b
3416	3416
3417	3417
3418	3418	SB1178- 95 -LRB104 08564 HLH 18616 b SB1178 - 95 - LRB104 08564 HLH 18616 b
3419	3419	SB1178 - 95 - LRB104 08564 HLH 18616 b
3420	3420	1 latex gloves, and protective films.
3421	3421	2 Beginning January 1, 2010 and continuing through
3422	3422	3 December 31, 2023, this exemption applies only to the sale
3423	3423	4 of qualifying tangible personal property to persons who
3424	3424	5 modify, refurbish, complete, replace, or maintain an
3425	3425	6 aircraft and who (i) hold an Air Agency Certificate and
3426	3426	7 are empowered to operate an approved repair station by the
3427	3427	8 Federal Aviation Administration, (ii) have a Class IV
3428	3428	9 Rating, and (iii) conduct operations in accordance with
3429	3429	10 Part 145 of the Federal Aviation Regulations. The
3430	3430	11 exemption does not include aircraft operated by a
3431	3431	12 commercial air carrier providing scheduled passenger air
3432	3432	13 service pursuant to authority issued under Part 121 or
3433	3433	14 Part 129 of the Federal Aviation Regulations. From January
3434	3434	15 1, 2024 through December 31, 2029, this exemption applies
3435	3435	16 only to the sale of qualifying tangible personal property
3436	3436	17 to: (A) persons who modify, refurbish, complete, repair,
3437	3437	18 replace, or maintain aircraft and who (i) hold an Air
3438	3438	19 Agency Certificate and are empowered to operate an
3439	3439	20 approved repair station by the Federal Aviation
3440	3440	21 Administration, (ii) have a Class IV Rating, and (iii)
3441	3441	22 conduct operations in accordance with Part 145 of the
3442	3442	23 Federal Aviation Regulations; and (B) persons who engage
3443	3443	24 in the modification, replacement, repair, and maintenance
3444	3444	25 of aircraft engines or power plants without regard to
3445	3445	26 whether or not those persons meet the qualifications of
3446	3446
3447	3447
3448	3448
3449	3449
3450	3450
3451	3451	SB1178 - 95 - LRB104 08564 HLH 18616 b
3452	3452
3453	3453
3454	3454	SB1178- 96 -LRB104 08564 HLH 18616 b SB1178 - 96 - LRB104 08564 HLH 18616 b
3455	3455	SB1178 - 96 - LRB104 08564 HLH 18616 b
3456	3456	1 item (A).
3457	3457	2 The changes made to this paragraph (40) by Public Act
3458	3458	3 98-534 are declarative of existing law. It is the intent
3459	3459	4 of the General Assembly that the exemption under this
3460	3460	5 paragraph (40) applies continuously from January 1, 2010
3461	3461	6 through December 31, 2024; however, no claim for credit or
3462	3462	7 refund is allowed for taxes paid as a result of the
3463	3463	8 disallowance of this exemption on or after January 1, 2015
3464	3464	9 and prior to February 5, 2020 (the effective date of
3465	3465	10 Public Act 101-629).
3466	3466	11 (41) Tangible personal property sold to a
3467	3467	12 public-facilities corporation, as described in Section
3468	3468	13 11-65-10 of the Illinois Municipal Code, for purposes of
3469	3469	14 constructing or furnishing a municipal convention hall,
3470	3470	15 but only if the legal title to the municipal convention
3471	3471	16 hall is transferred to the municipality without any
3472	3472	17 further consideration by or on behalf of the municipality
3473	3473	18 at the time of the completion of the municipal convention
3474	3474	19 hall or upon the retirement or redemption of any bonds or
3475	3475	20 other debt instruments issued by the public-facilities
3476	3476	21 corporation in connection with the development of the
3477	3477	22 municipal convention hall. This exemption includes
3478	3478	23 existing public-facilities corporations as provided in
3479	3479	24 Section 11-65-25 of the Illinois Municipal Code. This
3480	3480	25 paragraph is exempt from the provisions of Section 2-70.
3481	3481	26 (42) Beginning January 1, 2017 and through December
3482	3482
3483	3483
3484	3484
3485	3485
3486	3486
3487	3487	SB1178 - 96 - LRB104 08564 HLH 18616 b
3488	3488
3489	3489
3490	3490	SB1178- 97 -LRB104 08564 HLH 18616 b SB1178 - 97 - LRB104 08564 HLH 18616 b
3491	3491	SB1178 - 97 - LRB104 08564 HLH 18616 b
3492	3492	1 31, 2026, menstrual pads, tampons, and menstrual cups.
3493	3493	2 (43) Merchandise that is subject to the Rental
3494	3494	3 Purchase Agreement Occupation and Use Tax. The purchaser
3495	3495	4 must certify that the item is purchased to be rented
3496	3496	5 subject to a rental-purchase agreement, as defined in the
3497	3497	6 Rental-Purchase Agreement Act, and provide proof of
3498	3498	7 registration under the Rental Purchase Agreement
3499	3499	8 Occupation and Use Tax Act. This paragraph is exempt from
3500	3500	9 the provisions of Section 2-70.
3501	3501	10 (44) Qualified tangible personal property used in the
3502	3502	11 construction or operation of a data center that has been
3503	3503	12 granted a certificate of exemption by the Department of
3504	3504	13 Commerce and Economic Opportunity, whether that tangible
3505	3505	14 personal property is purchased by the owner, operator, or
3506	3506	15 tenant of the data center or by a contractor or
3507	3507	16 subcontractor of the owner, operator, or tenant. Data
3508	3508	17 centers that would have qualified for a certificate of
3509	3509	18 exemption prior to January 1, 2020 had Public Act 101-31
3510	3510	19 been in effect, may apply for and obtain an exemption for
3511	3511	20 subsequent purchases of computer equipment or enabling
3512	3512	21 software purchased or leased to upgrade, supplement, or
3513	3513	22 replace computer equipment or enabling software purchased
3514	3514	23 or leased in the original investment that would have
3515	3515	24 qualified.
3516	3516	25 The Department of Commerce and Economic Opportunity
3517	3517	26 shall grant a certificate of exemption under this item
3518	3518
3519	3519
3520	3520
3521	3521
3522	3522
3523	3523	SB1178 - 97 - LRB104 08564 HLH 18616 b
3524	3524
3525	3525
3526	3526	SB1178- 98 -LRB104 08564 HLH 18616 b SB1178 - 98 - LRB104 08564 HLH 18616 b
3527	3527	SB1178 - 98 - LRB104 08564 HLH 18616 b
3528	3528	1 (44) to qualified data centers as defined by Section
3529	3529	2 605-1025 of the Department of Commerce and Economic
3530	3530	3 Opportunity Law of the Civil Administrative Code of
3531	3531	4 Illinois.
3532	3532	5 For the purposes of this item (44):
3533	3533	6 "Data center" means a building or a series of
3534	3534	7 buildings rehabilitated or constructed to house
3535	3535	8 working servers in one physical location or multiple
3536	3536	9 sites within the State of Illinois.
3537	3537	10 "Qualified tangible personal property" means:
3538	3538	11 electrical systems and equipment; climate control and
3539	3539	12 chilling equipment and systems; mechanical systems and
3540	3540	13 equipment; monitoring and secure systems; emergency
3541	3541	14 generators; hardware; computers; servers; data storage
3542	3542	15 devices; network connectivity equipment; racks;
3543	3543	16 cabinets; telecommunications cabling infrastructure;
3544	3544	17 raised floor systems; peripheral components or
3545	3545	18 systems; software; mechanical, electrical, or plumbing
3546	3546	19 systems; battery systems; cooling systems and towers;
3547	3547	20 temperature control systems; other cabling; and other
3548	3548	21 data center infrastructure equipment and systems
3549	3549	22 necessary to operate qualified tangible personal
3550	3550	23 property, including fixtures; and component parts of
3551	3551	24 any of the foregoing, including installation,
3552	3552	25 maintenance, repair, refurbishment, and replacement of
3553	3553	26 qualified tangible personal property to generate,
3554	3554
3555	3555
3556	3556
3557	3557
3558	3558
3559	3559	SB1178 - 98 - LRB104 08564 HLH 18616 b
3560	3560
3561	3561
3562	3562	SB1178- 99 -LRB104 08564 HLH 18616 b SB1178 - 99 - LRB104 08564 HLH 18616 b
3563	3563	SB1178 - 99 - LRB104 08564 HLH 18616 b
3564	3564	1 transform, transmit, distribute, or manage electricity
3565	3565	2 necessary to operate qualified tangible personal
3566	3566	3 property; and all other tangible personal property
3567	3567	4 that is essential to the operations of a computer data
3568	3568	5 center. The term "qualified tangible personal
3569	3569	6 property" also includes building materials physically
3570	3570	7 incorporated into the qualifying data center. To
3571	3571	8 document the exemption allowed under this Section, the
3572	3572	9 retailer must obtain from the purchaser a copy of the
3573	3573	10 certificate of eligibility issued by the Department of
3574	3574	11 Commerce and Economic Opportunity.
3575	3575	12 This item (44) is exempt from the provisions of
3576	3576	13 Section 2-70.
3577	3577	14 (45) Beginning January 1, 2020 and through December
3578	3578	15 31, 2020, sales of tangible personal property made by a
3579	3579	16 marketplace seller over a marketplace for which tax is due
3580	3580	17 under this Act but for which use tax has been collected and
3581	3581	18 remitted to the Department by a marketplace facilitator
3582	3582	19 under Section 2d of the Use Tax Act are exempt from tax
3583	3583	20 under this Act. A marketplace seller claiming this
3584	3584	21 exemption shall maintain books and records demonstrating
3585	3585	22 that the use tax on such sales has been collected and
3586	3586	23 remitted by a marketplace facilitator. Marketplace sellers
3587	3587	24 that have properly remitted tax under this Act on such
3588	3588	25 sales may file a claim for credit as provided in Section 6
3589	3589	26 of this Act. No claim is allowed, however, for such taxes
3590	3590
3591	3591
3592	3592
3593	3593
3594	3594
3595	3595	SB1178 - 99 - LRB104 08564 HLH 18616 b
3596	3596
3597	3597
3598	3598	SB1178- 100 -LRB104 08564 HLH 18616 b SB1178 - 100 - LRB104 08564 HLH 18616 b
3599	3599	SB1178 - 100 - LRB104 08564 HLH 18616 b
3600	3600	1 for which a credit or refund has been issued to the
3601	3601	2 marketplace facilitator under the Use Tax Act, or for
3602	3602	3 which the marketplace facilitator has filed a claim for
3603	3603	4 credit or refund under the Use Tax Act.
3604	3604	5 (46) Beginning July 1, 2022, breast pumps, breast pump
3605	3605	6 collection and storage supplies, and breast pump kits.
3606	3606	7 This item (46) is exempt from the provisions of Section
3607	3607	8 2-70. As used in this item (46):
3608	3608	9 "Breast pump" means an electrically controlled or
3609	3609	10 manually controlled pump device designed or marketed to be
3610	3610	11 used to express milk from a human breast during lactation,
3611	3611	12 including the pump device and any battery, AC adapter, or
3612	3612	13 other power supply unit that is used to power the pump
3613	3613	14 device and is packaged and sold with the pump device at the
3614	3614	15 time of sale.
3615	3615	16 "Breast pump collection and storage supplies" means
3616	3616	17 items of tangible personal property designed or marketed
3617	3617	18 to be used in conjunction with a breast pump to collect
3618	3618	19 milk expressed from a human breast and to store collected
3619	3619	20 milk until it is ready for consumption.
3620	3620	21 "Breast pump collection and storage supplies"
3621	3621	22 includes, but is not limited to: breast shields and breast
3622	3622	23 shield connectors; breast pump tubes and tubing adapters;
3623	3623	24 breast pump valves and membranes; backflow protectors and
3624	3624	25 backflow protector adaptors; bottles and bottle caps
3625	3625	26 specific to the operation of the breast pump; and breast
3626	3626
3627	3627
3628	3628
3629	3629
3630	3630
3631	3631	SB1178 - 100 - LRB104 08564 HLH 18616 b
3632	3632
3633	3633
3634	3634	SB1178- 101 -LRB104 08564 HLH 18616 b SB1178 - 101 - LRB104 08564 HLH 18616 b
3635	3635	SB1178 - 101 - LRB104 08564 HLH 18616 b
3636	3636	1 milk storage bags.
3637	3637	2 "Breast pump collection and storage supplies" does not
3638	3638	3 include: (1) bottles and bottle caps not specific to the
3639	3639	4 operation of the breast pump; (2) breast pump travel bags
3640	3640	5 and other similar carrying accessories, including ice
3641	3641	6 packs, labels, and other similar products; (3) breast pump
3642	3642	7 cleaning supplies; (4) nursing bras, bra pads, breast
3643	3643	8 shells, and other similar products; and (5) creams,
3644	3644	9 ointments, and other similar products that relieve
3645	3645	10 breastfeeding-related symptoms or conditions of the
3646	3646	11 breasts or nipples, unless sold as part of a breast pump
3647	3647	12 kit that is pre-packaged by the breast pump manufacturer
3648	3648	13 or distributor.
3649	3649	14 "Breast pump kit" means a kit that: (1) contains no
3650	3650	15 more than a breast pump, breast pump collection and
3651	3651	16 storage supplies, a rechargeable battery for operating the
3652	3652	17 breast pump, a breastmilk cooler, bottle stands, ice
3653	3653	18 packs, and a breast pump carrying case; and (2) is
3654	3654	19 pre-packaged as a breast pump kit by the breast pump
3655	3655	20 manufacturer or distributor.
3656	3656	21 (47) Tangible personal property sold by or on behalf
3657	3657	22 of the State Treasurer pursuant to the Revised Uniform
3658	3658	23 Unclaimed Property Act. This item (47) is exempt from the
3659	3659	24 provisions of Section 2-70.
3660	3660	25 (48) Beginning on January 1, 2024, tangible personal
3661	3661	26 property purchased by an active duty member of the armed
3662	3662
3663	3663
3664	3664
3665	3665
3666	3666
3667	3667	SB1178 - 101 - LRB104 08564 HLH 18616 b
3668	3668
3669	3669
3670	3670	SB1178- 102 -LRB104 08564 HLH 18616 b SB1178 - 102 - LRB104 08564 HLH 18616 b
3671	3671	SB1178 - 102 - LRB104 08564 HLH 18616 b
3672	3672	1 forces of the United States who presents valid military
3673	3673	2 identification and purchases the property using a form of
3674	3674	3 payment where the federal government is the payor. The
3675	3675	4 member of the armed forces must complete, at the point of
3676	3676	5 sale, a form prescribed by the Department of Revenue
3677	3677	6 documenting that the transaction is eligible for the
3678	3678	7 exemption under this paragraph. Retailers must keep the
3679	3679	8 form as documentation of the exemption in their records
3680	3680	9 for a period of not less than 6 years. "Armed forces of the
3681	3681	10 United States" means the United States Army, Navy, Air
3682	3682	11 Force, Space Force, Marine Corps, or Coast Guard. This
3683	3683	12 paragraph is exempt from the provisions of Section 2-70.
3684	3684	13 (49) Beginning July 1, 2024, home-delivered meals
3685	3685	14 provided to Medicare or Medicaid recipients when payment
3686	3686	15 is made by an intermediary, such as a Medicare
3687	3687	16 Administrative Contractor, a Managed Care Organization, or
3688	3688	17 a Medicare Advantage Organization, pursuant to a
3689	3689	18 government contract. This paragraph (49) is exempt from
3690	3690	19 the provisions of Section 2-70.
3691	3691	20 (50) (49) Beginning on January 1, 2026, as further
3692	3692	21 defined in Section 2-10, food for human consumption that
3693	3693	22 is to be consumed off the premises where it is sold (other
3694	3694	23 than alcoholic beverages, food consisting of or infused
3695	3695	24 with adult use cannabis, soft drinks, candy, and food that
3696	3696	25 has been prepared for immediate consumption). This item
3697	3697	26 (50) (49) is exempt from the provisions of Section 2-70.
3698	3698
3699	3699
3700	3700
3701	3701
3702	3702
3703	3703	SB1178 - 102 - LRB104 08564 HLH 18616 b
3704	3704
3705	3705
3706	3706	SB1178- 103 -LRB104 08564 HLH 18616 b SB1178 - 103 - LRB104 08564 HLH 18616 b
3707	3707	SB1178 - 103 - LRB104 08564 HLH 18616 b
3708	3708	1 (51) (49) Gross receipts from the lease of the
3709	3709	2 following tangible personal property:
3710	3710	3 (1) computer software transferred subject to a
3711	3711	4 license that meets the following requirements:
3712	3712	5 (A) it is evidenced by a written agreement
3713	3713	6 signed by the licensor and the customer;
3714	3714	7 (i) an electronic agreement in which the
3715	3715	8 customer accepts the license by means of an
3716	3716	9 electronic signature that is verifiable and
3717	3717	10 can be authenticated and is attached to or
3718	3718	11 made part of the license will comply with this
3719	3719	12 requirement;
3720	3720	13 (ii) a license agreement in which the
3721	3721	14 customer electronically accepts the terms by
3722	3722	15 clicking "I agree" does not comply with this
3723	3723	16 requirement;
3724	3724	17 (B) it restricts the customer's duplication
3725	3725	18 and use of the software;
3726	3726	19 (C) it prohibits the customer from licensing,
3727	3727	20 sublicensing, or transferring the software to a
3728	3728	21 third party (except to a related party) without
3729	3729	22 the permission and continued control of the
3730	3730	23 licensor;
3731	3731	24 (D) the licensor has a policy of providing
3732	3732	25 another copy at minimal or no charge if the
3733	3733	26 customer loses or damages the software, or of
3734	3734
3735	3735
3736	3736
3737	3737
3738	3738
3739	3739	SB1178 - 103 - LRB104 08564 HLH 18616 b
3740	3740
3741	3741
3742	3742	SB1178- 104 -LRB104 08564 HLH 18616 b SB1178 - 104 - LRB104 08564 HLH 18616 b
3743	3743	SB1178 - 104 - LRB104 08564 HLH 18616 b
3744	3744	1 permitting the licensee to make and keep an
3745	3745	2 archival copy, and such policy is either stated in
3746	3746	3 the license agreement, supported by the licensor's
3747	3747	4 books and records, or supported by a notarized
3748	3748	5 statement made under penalties of perjury by the
3749	3749	6 licensor; and
3750	3750	7 (E) the customer must destroy or return all
3751	3751	8 copies of the software to the licensor at the end
3752	3752	9 of the license period; this provision is deemed to
3753	3753	10 be met, in the case of a perpetual license,
3754	3754	11 without being set forth in the license agreement;
3755	3755	12 and
3756	3756	13 (2) property that is subject to a tax on lease
3757	3757	14 receipts imposed by a home rule unit of local
3758	3758	15 government if the ordinance imposing that tax was
3759	3759	16 adopted prior to January 1, 2023.
3760	3760	17 (52) Tangible personal property that is (i) purchased
3761	3761	18 by a developer who has been awarded a certificate of
3762	3762	19 exemption under this paragraph (52) by the Department of
3763	3763	20 Commerce and Economic Opportunity and (ii) used to
3764	3764	21 rehabilitate brownfield or grayfield property, as defined
3765	3765	22 in Section 246 of the Illinois Income Tax Act, after
3766	3766	23 remediation has occurred. The Department of Commerce and
3767	3767	24 Economic Opportunity shall award certificates of exemption
3768	3768	25 under this paragraph (52) for property that meets the
3769	3769	26 criteria under this paragraph (52). This paragraph is
3770	3770
3771	3771
3772	3772
3773	3773
3774	3774
3775	3775	SB1178 - 104 - LRB104 08564 HLH 18616 b
3776	3776
3777	3777
3778	3778	SB1178- 105 -LRB104 08564 HLH 18616 b SB1178 - 105 - LRB104 08564 HLH 18616 b
3779	3779	SB1178 - 105 - LRB104 08564 HLH 18616 b
3780	3780	1 exempt from the provisions of Section 2-70.
3781	3781	2 (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
3782	3782	3 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
3783	3783	4 Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
3784	3784	5 5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
3785	3785	6 5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
3786	3786	7 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; 103-592,
3787	3787	8 eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff. 7-1-24;
3788	3788	9 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995, eff.
3789	3789	10 8-9-24; revised 11-26-24.)
3790	3790
3791	3791
3792	3792
3793	3793
3794	3794
3795	3795	SB1178 - 105 - LRB104 08564 HLH 18616 b