Illinois Senate Bill SB1633 Latest Draft

                            104TH GENERAL ASSEMBLY
 State of Illinois
 2025 and 2026 SB1633 Introduced 2/4/2025, by Sen. Donald P. DeWitte SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that leases of solar energy systems are exempt from the taxes imposed under the Acts. LRB104 08081 HLH 18127 b   A BILL FOR 104TH GENERAL ASSEMBLY
 State of Illinois
 2025 and 2026 SB1633 Introduced 2/4/2025, by Sen. Donald P. DeWitte SYNOPSIS AS INTRODUCED:  35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5 35 ILCS 105/3-5  35 ILCS 110/3-5  35 ILCS 115/3-5  35 ILCS 120/2-5  Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that leases of solar energy systems are exempt from the taxes imposed under the Acts.  LRB104 08081 HLH 18127 b     LRB104 08081 HLH 18127 b   A BILL FOR
104TH GENERAL ASSEMBLY
 State of Illinois
 2025 and 2026 SB1633 Introduced 2/4/2025, by Sen. Donald P. DeWitte SYNOPSIS AS INTRODUCED:
35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5 35 ILCS 105/3-5  35 ILCS 110/3-5  35 ILCS 115/3-5  35 ILCS 120/2-5
35 ILCS 105/3-5
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/2-5
Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that leases of solar energy systems are exempt from the taxes imposed under the Acts.
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A BILL FOR
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1  AN ACT concerning revenue.
2  Be it enacted by the People of the State of Illinois,
3  represented in the General Assembly:
4  Section 5. The Use Tax Act is amended by changing Section
5  3-5 as follows:
6  (35 ILCS 105/3-5)
7  Sec. 3-5. Exemptions. Use, which, on and after January 1,
8  2025, includes use by a lessee, of the following tangible
9  personal property is exempt from the tax imposed by this Act:
10  (1) Personal property purchased from a corporation,
11  society, association, foundation, institution, or
12  organization, other than a limited liability company, that is
13  organized and operated as a not-for-profit service enterprise
14  for the benefit of persons 65 years of age or older if the
15  personal property was not purchased by the enterprise for the
16  purpose of resale by the enterprise.
17  (2) Personal property purchased by a not-for-profit
18  Illinois county fair association for use in conducting,
19  operating, or promoting the county fair.
20  (3) Personal property purchased by a not-for-profit arts
21  or cultural organization that establishes, by proof required
22  by the Department by rule, that it has received an exemption
23  under Section 501(c)(3) of the Internal Revenue Code and that

 

104TH GENERAL ASSEMBLY
 State of Illinois
 2025 and 2026 SB1633 Introduced 2/4/2025, by Sen. Donald P. DeWitte SYNOPSIS AS INTRODUCED:
35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5 35 ILCS 105/3-5  35 ILCS 110/3-5  35 ILCS 115/3-5  35 ILCS 120/2-5
35 ILCS 105/3-5
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/2-5
Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that leases of solar energy systems are exempt from the taxes imposed under the Acts.
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A BILL FOR

 

 

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



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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  (E) the customer must destroy or return all copies
2  of the software to the licensor at the end of the
3  license period; this provision is deemed to be met, in
4  the case of a perpetual license, without being set
5  forth in the license agreement; and
6  (2) property that is subject to a tax on lease
7  receipts imposed by a home rule unit of local government
8  if the ordinance imposing that tax was adopted prior to
9  January 1, 2023; and .
10  (3) a solar energy system, as defined in Section 10-5
11  of the Property Tax Code.
12  (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
13  Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
14  eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
15  Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
16  eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
17  103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
18  7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; revised
19  11-26-24.)
20  Section 10. The Service Use Tax Act is amended by changing
21  Section 3-5 as follows:
22  (35 ILCS 110/3-5)
23  Sec. 3-5. Exemptions. Use of the following tangible
24  personal property is exempt from the tax imposed by this Act:

 

 

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

 

 

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1  coinage issued by the State of Illinois, the government of the
2  United States of America, or the government of any foreign
3  country, and bullion.
4  (5) Until July 1, 2003 and beginning again on September 1,
5  2004 through August 30, 2014, graphic arts machinery and
6  equipment, including repair and replacement parts, both new
7  and used, and including that manufactured on special order or
8  purchased for lease, certified by the purchaser to be used
9  primarily for graphic arts production. Equipment includes
10  chemicals or chemicals acting as catalysts but only if the
11  chemicals or chemicals acting as catalysts effect a direct and
12  immediate change upon a graphic arts product. Beginning on
13  July 1, 2017, graphic arts machinery and equipment is included
14  in the manufacturing and assembling machinery and equipment
15  exemption under Section 2 of this Act.
16  (6) Personal property purchased from a teacher-sponsored
17  student organization affiliated with an elementary or
18  secondary school located in Illinois.
19  (7) Farm machinery and equipment, both new and used,
20  including that manufactured on special order, certified by the
21  purchaser to be used primarily for production agriculture or
22  State or federal agricultural programs, including individual
23  replacement parts for the machinery and equipment, including
24  machinery and equipment purchased for lease, and including
25  implements of husbandry defined in Section 1-130 of the
26  Illinois Vehicle Code, farm machinery and agricultural

 

 

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

 

 

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1  Beginning on January 1, 2024, farm machinery and equipment
2  also includes electrical power generation equipment used
3  primarily for production agriculture.
4  This item (7) is exempt from the provisions of Section
5  3-75.
6  (8) Until June 30, 2013, fuel and petroleum products sold
7  to or used by an air common carrier, certified by the carrier
8  to be used for consumption, shipment, or storage in the
9  conduct of its business as an air common carrier, for a flight
10  destined for or returning from a location or locations outside
11  the United States without regard to previous or subsequent
12  domestic stopovers.
13  Beginning July 1, 2013, fuel and petroleum products sold
14  to or used by an air carrier, certified by the carrier to be
15  used for consumption, shipment, or storage in the conduct of
16  its business as an air common carrier, for a flight that (i) is
17  engaged in foreign trade or is engaged in trade between the
18  United States and any of its possessions and (ii) transports
19  at least one individual or package for hire from the city of
20  origination to the city of final destination on the same
21  aircraft, without regard to a change in the flight number of
22  that aircraft.
23  (9) Proceeds of mandatory service charges separately
24  stated on customers' bills for the purchase and consumption of
25  food and beverages acquired as an incident to the purchase of a
26  service from a serviceman, to the extent that the proceeds of

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  schools, and vocational or technical schools or institutes
2  organized and operated exclusively to provide a course of
3  study of not less than 6 weeks duration and designed to prepare
4  individuals to follow a trade or to pursue a manual,
5  technical, mechanical, industrial, business, or commercial
6  occupation.
7  (21) Beginning January 1, 2000, personal property,
8  including food, purchased through fundraising events for the
9  benefit of a public or private elementary or secondary school,
10  a group of those schools, or one or more school districts if
11  the events are sponsored by an entity recognized by the school
12  district that consists primarily of volunteers and includes
13  parents and teachers of the school children. This paragraph
14  does not apply to fundraising events (i) for the benefit of
15  private home instruction or (ii) for which the fundraising
16  entity purchases the personal property sold at the events from
17  another individual or entity that sold the property for the
18  purpose of resale by the fundraising entity and that profits
19  from the sale to the fundraising entity. This paragraph is
20  exempt from the provisions of Section 3-75.
21  (22) Beginning January 1, 2000 and through December 31,
22  2001, new or used automatic vending machines that prepare and
23  serve hot food and beverages, including coffee, soup, and
24  other items, and replacement parts for these machines.
25  Beginning January 1, 2002 and through June 30, 2003, machines
26  and parts for machines used in commercial, coin-operated

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  receipts imposed by a home rule unit of local government
2  if the ordinance imposing that tax was adopted prior to
3  January 1, 2023; and .
4  (3) solar energy systems, as defined in Section 10-5
5  of the Property Tax Code.
6  (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
7  Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
8  75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
9  Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
10  eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
11  103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
12  7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995,
13  eff. 8-9-24; revised 11-26-24.)
14  Section 15. The Service Occupation Tax Act is amended by
15  changing Section 3-5 as follows:
16  (35 ILCS 115/3-5)
17  Sec. 3-5. Exemptions. The following tangible personal
18  property is exempt from the tax imposed by this Act:
19  (1) Personal property sold by a corporation, society,
20  association, foundation, institution, or organization, other
21  than a limited liability company, that is organized and
22  operated as a not-for-profit service enterprise for the
23  benefit of persons 65 years of age or older if the personal
24  property was not purchased by the enterprise for the purpose

 

 

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1  of resale by the enterprise.
2  (2) Personal property purchased by a not-for-profit
3  Illinois county fair association for use in conducting,
4  operating, or promoting the county fair.
5  (3) Personal property purchased by any not-for-profit arts
6  or cultural organization that establishes, by proof required
7  by the Department by rule, that it has received an exemption
8  under Section 501(c)(3) of the Internal Revenue Code and that
9  is organized and operated primarily for the presentation or
10  support of arts or cultural programming, activities, or
11  services. These organizations include, but are not limited to,
12  music and dramatic arts organizations such as symphony
13  orchestras and theatrical groups, arts and cultural service
14  organizations, local arts councils, visual arts organizations,
15  and media arts organizations. On and after July 1, 2001 (the
16  effective date of Public Act 92-35), however, an entity
17  otherwise eligible for this exemption shall not make tax-free
18  purchases unless it has an active identification number issued
19  by the Department.
20  (4) Legal tender, currency, medallions, or gold or silver
21  coinage issued by the State of Illinois, the government of the
22  United States of America, or the government of any foreign
23  country, and bullion.
24  (5) Until July 1, 2003 and beginning again on September 1,
25  2004 through August 30, 2014, graphic arts machinery and
26  equipment, including repair and replacement parts, both new

 

 

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1  and used, and including that manufactured on special order or
2  purchased for lease, certified by the purchaser to be used
3  primarily for graphic arts production. Equipment includes
4  chemicals or chemicals acting as catalysts but only if the
5  chemicals or chemicals acting as catalysts effect a direct and
6  immediate change upon a graphic arts product. Beginning on
7  July 1, 2017, graphic arts machinery and equipment is included
8  in the manufacturing and assembling machinery and equipment
9  exemption under Section 2 of this Act.
10  (6) Personal property sold by a teacher-sponsored student
11  organization affiliated with an elementary or secondary school
12  located in Illinois.
13  (7) Farm machinery and equipment, both new and used,
14  including that manufactured on special order, certified by the
15  purchaser to be used primarily for production agriculture or
16  State or federal agricultural programs, including individual
17  replacement parts for the machinery and equipment, including
18  machinery and equipment purchased for lease, and including
19  implements of husbandry defined in Section 1-130 of the
20  Illinois Vehicle Code, farm machinery and agricultural
21  chemical and fertilizer spreaders, and nurse wagons required
22  to be registered under Section 3-809 of the Illinois Vehicle
23  Code, but excluding other motor vehicles required to be
24  registered under the Illinois Vehicle Code. Horticultural
25  polyhouses or hoop houses used for propagating, growing, or
26  overwintering plants shall be considered farm machinery and

 

 

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1  equipment under this item (7). Agricultural chemical tender
2  tanks and dry boxes shall include units sold separately from a
3  motor vehicle required to be licensed and units sold mounted
4  on a motor vehicle required to be licensed if the selling price
5  of the tender is separately stated.
6  Farm machinery and equipment shall include precision
7  farming equipment that is installed or purchased to be
8  installed on farm machinery and equipment, including, but not
9  limited to, tractors, harvesters, sprayers, planters, seeders,
10  or spreaders. Precision farming equipment includes, but is not
11  limited to, soil testing sensors, computers, monitors,
12  software, global positioning and mapping systems, and other
13  such equipment.
14  Farm machinery and equipment also includes computers,
15  sensors, software, and related equipment used primarily in the
16  computer-assisted operation of production agriculture
17  facilities, equipment, and activities such as, but not limited
18  to, the collection, monitoring, and correlation of animal and
19  crop data for the purpose of formulating animal diets and
20  agricultural chemicals.
21  Beginning on January 1, 2024, farm machinery and equipment
22  also includes electrical power generation equipment used
23  primarily for production agriculture.
24  This item (7) is exempt from the provisions of Section
25  3-55.
26  (8) Until June 30, 2013, fuel and petroleum products sold

 

 

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1  to or used by an air common carrier, certified by the carrier
2  to be used for consumption, shipment, or storage in the
3  conduct of its business as an air common carrier, for a flight
4  destined for or returning from a location or locations outside
5  the United States without regard to previous or subsequent
6  domestic stopovers.
7  Beginning July 1, 2013, fuel and petroleum products sold
8  to or used by an air carrier, certified by the carrier to be
9  used for consumption, shipment, or storage in the conduct of
10  its business as an air common carrier, for a flight that (i) is
11  engaged in foreign trade or is engaged in trade between the
12  United States and any of its possessions and (ii) transports
13  at least one individual or package for hire from the city of
14  origination to the city of final destination on the same
15  aircraft, without regard to a change in the flight number of
16  that aircraft.
17  (9) Proceeds of mandatory service charges separately
18  stated on customers' bills for the purchase and consumption of
19  food and beverages, to the extent that the proceeds of the
20  service charge are in fact turned over as tips or as a
21  substitute for tips to the employees who participate directly
22  in preparing, serving, hosting or cleaning up the food or
23  beverage function with respect to which the service charge is
24  imposed.
25  (10) Until July 1, 2003, oil field exploration, drilling,
26  and production equipment, including (i) rigs and parts of

 

 

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1  rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
2  pipe and tubular goods, including casing and drill strings,
3  (iii) pumps and pump-jack units, (iv) storage tanks and flow
4  lines, (v) any individual replacement part for oil field
5  exploration, drilling, and production equipment, and (vi)
6  machinery and equipment purchased for lease; but excluding
7  motor vehicles required to be registered under the Illinois
8  Vehicle Code.
9  (11) Photoprocessing machinery and equipment, including
10  repair and replacement parts, both new and used, including
11  that manufactured on special order, certified by the purchaser
12  to be used primarily for photoprocessing, and including
13  photoprocessing machinery and equipment purchased for lease.
14  (12) Until July 1, 2028, coal and aggregate exploration,
15  mining, off-highway hauling, processing, maintenance, and
16  reclamation equipment, including replacement parts and
17  equipment, and including equipment purchased for lease, but
18  excluding motor vehicles required to be registered under the
19  Illinois Vehicle Code. The changes made to this Section by
20  Public Act 97-767 apply on and after July 1, 2003, but no claim
21  for credit or refund is allowed on or after August 16, 2013
22  (the effective date of Public Act 98-456) for such taxes paid
23  during the period beginning July 1, 2003 and ending on August
24  16, 2013 (the effective date of Public Act 98-456).
25  (13) Beginning January 1, 1992 and through June 30, 2016,
26  food for human consumption that is to be consumed off the

 

 

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1  premises where it is sold (other than alcoholic beverages,
2  soft drinks and food that has been prepared for immediate
3  consumption) and prescription and non-prescription medicines,
4  drugs, medical appliances, and insulin, urine testing
5  materials, syringes, and needles used by diabetics, for human
6  use, when purchased for use by a person receiving medical
7  assistance under Article V of the Illinois Public Aid Code who
8  resides in a licensed long-term care facility, as defined in
9  the Nursing Home Care Act, or in a licensed facility as defined
10  in the ID/DD Community Care Act, the MC/DD Act, or the
11  Specialized Mental Health Rehabilitation Act of 2013.
12  (14) Semen used for artificial insemination of livestock
13  for direct agricultural production.
14  (15) Horses, or interests in horses, registered with and
15  meeting the requirements of any of the Arabian Horse Club
16  Registry of America, Appaloosa Horse Club, American Quarter
17  Horse Association, United States Trotting Association, or
18  Jockey Club, as appropriate, used for purposes of breeding or
19  racing for prizes. This item (15) is exempt from the
20  provisions of Section 3-55, and the exemption provided for
21  under this item (15) applies for all periods beginning May 30,
22  1995, but no claim for credit or refund is allowed on or after
23  January 1, 2008 (the effective date of Public Act 95-88) for
24  such taxes paid during the period beginning May 30, 2000 and
25  ending on January 1, 2008 (the effective date of Public Act
26  95-88).

 

 

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1  (16) Computers and communications equipment utilized for
2  any hospital purpose and equipment used in the diagnosis,
3  analysis, or treatment of hospital patients sold to a lessor
4  who leases the equipment, under a lease of one year or longer
5  executed or in effect at the time of the purchase, to a
6  hospital that has been issued an active tax exemption
7  identification number by the Department under Section 1g of
8  the Retailers' Occupation Tax Act.
9  (17) Personal property sold to a lessor who leases the
10  property, under a lease of one year or longer executed or in
11  effect at the time of the purchase, to a governmental body that
12  has been issued an active tax exemption identification number
13  by the Department under Section 1g of the Retailers'
14  Occupation Tax Act.
15  (18) Beginning with taxable years ending on or after
16  December 31, 1995 and ending with taxable years ending on or
17  before December 31, 2004, personal property that is donated
18  for disaster relief to be used in a State or federally declared
19  disaster area in Illinois or bordering Illinois by a
20  manufacturer or retailer that is registered in this State to a
21  corporation, society, association, foundation, or institution
22  that has been issued a sales tax exemption identification
23  number by the Department that assists victims of the disaster
24  who reside within the declared disaster area.
25  (19) Beginning with taxable years ending on or after
26  December 31, 1995 and ending with taxable years ending on or

 

 

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1  before December 31, 2004, personal property that is used in
2  the performance of infrastructure repairs in this State,
3  including, but not limited to, municipal roads and streets,
4  access roads, bridges, sidewalks, waste disposal systems,
5  water and sewer line extensions, water distribution and
6  purification facilities, storm water drainage and retention
7  facilities, and sewage treatment facilities, resulting from a
8  State or federally declared disaster in Illinois or bordering
9  Illinois when such repairs are initiated on facilities located
10  in the declared disaster area within 6 months after the
11  disaster.
12  (20) Beginning July 1, 1999, game or game birds sold at a
13  "game breeding and hunting preserve area" as that term is used
14  in the Wildlife Code. This paragraph is exempt from the
15  provisions of Section 3-55.
16  (21) A motor vehicle, as that term is defined in Section
17  1-146 of the Illinois Vehicle Code, that is donated to a
18  corporation, limited liability company, society, association,
19  foundation, or institution that is determined by the
20  Department to be organized and operated exclusively for
21  educational purposes. For purposes of this exemption, "a
22  corporation, limited liability company, society, association,
23  foundation, or institution organized and operated exclusively
24  for educational purposes" means all tax-supported public
25  schools, private schools that offer systematic instruction in
26  useful branches of learning by methods common to public

 

 

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1  schools and that compare favorably in their scope and
2  intensity with the course of study presented in tax-supported
3  schools, and vocational or technical schools or institutes
4  organized and operated exclusively to provide a course of
5  study of not less than 6 weeks duration and designed to prepare
6  individuals to follow a trade or to pursue a manual,
7  technical, mechanical, industrial, business, or commercial
8  occupation.
9  (22) Beginning January 1, 2000, personal property,
10  including food, purchased through fundraising events for the
11  benefit of a public or private elementary or secondary school,
12  a group of those schools, or one or more school districts if
13  the events are sponsored by an entity recognized by the school
14  district that consists primarily of volunteers and includes
15  parents and teachers of the school children. This paragraph
16  does not apply to fundraising events (i) for the benefit of
17  private home instruction or (ii) for which the fundraising
18  entity purchases the personal property sold at the events from
19  another individual or entity that sold the property for the
20  purpose of resale by the fundraising entity and that profits
21  from the sale to the fundraising entity. This paragraph is
22  exempt from the provisions of Section 3-55.
23  (23) Beginning January 1, 2000 and through December 31,
24  2001, new or used automatic vending machines that prepare and
25  serve hot food and beverages, including coffee, soup, and
26  other items, and replacement parts for these machines.

 

 

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1  Beginning January 1, 2002 and through June 30, 2003, machines
2  and parts for machines used in commercial, coin-operated
3  amusement and vending business if a use or occupation tax is
4  paid on the gross receipts derived from the use of the
5  commercial, coin-operated amusement and vending machines. This
6  paragraph is exempt from the provisions of Section 3-55.
7  (24) Beginning on August 2, 2001 (the effective date of
8  Public Act 92-227), computers and communications equipment
9  utilized for any hospital purpose and equipment used in the
10  diagnosis, analysis, or treatment of hospital patients sold to
11  a lessor who leases the equipment, under a lease of one year or
12  longer executed or in effect at the time of the purchase, to a
13  hospital that has been issued an active tax exemption
14  identification number by the Department under Section 1g of
15  the Retailers' Occupation Tax Act. This paragraph is exempt
16  from the provisions of Section 3-55.
17  (25) Beginning on August 2, 2001 (the effective date of
18  Public Act 92-227), personal property sold to a lessor who
19  leases the property, under a lease of one year or longer
20  executed or in effect at the time of the purchase, to a
21  governmental body that has been issued an active tax exemption
22  identification number by the Department under Section 1g of
23  the Retailers' Occupation Tax Act. This paragraph is exempt
24  from the provisions of Section 3-55.
25  (26) Beginning on January 1, 2002 and through June 30,
26  2016, tangible personal property purchased from an Illinois

 

 

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1  retailer by a taxpayer engaged in centralized purchasing
2  activities in Illinois who will, upon receipt of the property
3  in Illinois, temporarily store the property in Illinois (i)
4  for the purpose of subsequently transporting it outside this
5  State for use or consumption thereafter solely outside this
6  State or (ii) for the purpose of being processed, fabricated,
7  or manufactured into, attached to, or incorporated into other
8  tangible personal property to be transported outside this
9  State and thereafter used or consumed solely outside this
10  State. The Director of Revenue shall, pursuant to rules
11  adopted in accordance with the Illinois Administrative
12  Procedure Act, issue a permit to any taxpayer in good standing
13  with the Department who is eligible for the exemption under
14  this paragraph (26). The permit issued under this paragraph
15  (26) shall authorize the holder, to the extent and in the
16  manner specified in the rules adopted under this Act, to
17  purchase tangible personal property from a retailer exempt
18  from the taxes imposed by this Act. Taxpayers shall maintain
19  all necessary books and records to substantiate the use and
20  consumption of all such tangible personal property outside of
21  the State of Illinois.
22  (27) Beginning January 1, 2008, tangible personal property
23  used in the construction or maintenance of a community water
24  supply, as defined under Section 3.145 of the Environmental
25  Protection Act, that is operated by a not-for-profit
26  corporation that holds a valid water supply permit issued

 

 

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1  under Title IV of the Environmental Protection Act. This
2  paragraph is exempt from the provisions of Section 3-55.
3  (28) Tangible personal property sold to a
4  public-facilities corporation, as described in Section
5  11-65-10 of the Illinois Municipal Code, for purposes of
6  constructing or furnishing a municipal convention hall, but
7  only if the legal title to the municipal convention hall is
8  transferred to the municipality without any further
9  consideration by or on behalf of the municipality at the time
10  of the completion of the municipal convention hall or upon the
11  retirement or redemption of any bonds or other debt
12  instruments issued by the public-facilities corporation in
13  connection with the development of the municipal convention
14  hall. This exemption includes existing public-facilities
15  corporations as provided in Section 11-65-25 of the Illinois
16  Municipal Code. This paragraph is exempt from the provisions
17  of Section 3-55.
18  (29) Beginning January 1, 2010 and continuing through
19  December 31, 2029, materials, parts, equipment, components,
20  and furnishings incorporated into or upon an aircraft as part
21  of the modification, refurbishment, completion, replacement,
22  repair, or maintenance of the aircraft. This exemption
23  includes consumable supplies used in the modification,
24  refurbishment, completion, replacement, repair, and
25  maintenance of aircraft. However, until January 1, 2024, this
26  exemption excludes any materials, parts, equipment,

 

 

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

 

 

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1  Administration, (ii) have a Class IV Rating, and (iii) conduct
2  operations in accordance with Part 145 of the Federal Aviation
3  Regulations; and (B) the modification, replacement, repair,
4  and maintenance of aircraft engines or power plants without
5  regard to whether or not those persons meet the qualifications
6  of item (A).
7  The changes made to this paragraph (29) by Public Act
8  98-534 are declarative of existing law. It is the intent of the
9  General Assembly that the exemption under this paragraph (29)
10  applies continuously from January 1, 2010 through December 31,
11  2024; however, no claim for credit or refund is allowed for
12  taxes paid as a result of the disallowance of this exemption on
13  or after January 1, 2015 and prior to February 5, 2020 (the
14  effective date of Public Act 101-629).
15  (30) Beginning January 1, 2017 and through December 31,
16  2026, menstrual pads, tampons, and menstrual cups.
17  (31) Tangible personal property transferred to a purchaser
18  who is exempt from tax by operation of federal law. This
19  paragraph is exempt from the provisions of Section 3-55.
20  (32) Qualified tangible personal property used in the
21  construction or operation of a data center that has been
22  granted a certificate of exemption by the Department of
23  Commerce and Economic Opportunity, whether that tangible
24  personal property is purchased by the owner, operator, or
25  tenant of the data center or by a contractor or subcontractor
26  of the owner, operator, or tenant. Data centers that would

 

 

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1  have qualified for a certificate of exemption prior to January
2  1, 2020 had Public Act 101-31 been in effect, may apply for and
3  obtain an exemption for subsequent purchases of computer
4  equipment or enabling software purchased or leased to upgrade,
5  supplement, or replace computer equipment or enabling software
6  purchased or leased in the original investment that would have
7  qualified.
8  The Department of Commerce and Economic Opportunity shall
9  grant a certificate of exemption under this item (32) to
10  qualified data centers as defined by Section 605-1025 of the
11  Department of Commerce and Economic Opportunity Law of the
12  Civil Administrative Code of Illinois.
13  For the purposes of this item (32):
14  "Data center" means a building or a series of
15  buildings rehabilitated or constructed to house working
16  servers in one physical location or multiple sites within
17  the State of Illinois.
18  "Qualified tangible personal property" means:
19  electrical systems and equipment; climate control and
20  chilling equipment and systems; mechanical systems and
21  equipment; monitoring and secure systems; emergency
22  generators; hardware; computers; servers; data storage
23  devices; network connectivity equipment; racks; cabinets;
24  telecommunications cabling infrastructure; raised floor
25  systems; peripheral components or systems; software;
26  mechanical, electrical, or plumbing systems; battery

 

 

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1  systems; cooling systems and towers; temperature control
2  systems; other cabling; and other data center
3  infrastructure equipment and systems necessary to operate
4  qualified tangible personal property, including fixtures;
5  and component parts of any of the foregoing, including
6  installation, maintenance, repair, refurbishment, and
7  replacement of qualified tangible personal property to
8  generate, transform, transmit, distribute, or manage
9  electricity necessary to operate qualified tangible
10  personal property; and all other tangible personal
11  property that is essential to the operations of a computer
12  data center. The term "qualified tangible personal
13  property" also includes building materials physically
14  incorporated into the qualifying data center. To document
15  the exemption allowed under this Section, the retailer
16  must obtain from the purchaser a copy of the certificate
17  of eligibility issued by the Department of Commerce and
18  Economic Opportunity.
19  This item (32) is exempt from the provisions of Section
20  3-55.
21  (33) Beginning July 1, 2022, breast pumps, breast pump
22  collection and storage supplies, and breast pump kits. This
23  item (33) is exempt from the provisions of Section 3-55. As
24  used in this item (33):
25  "Breast pump" means an electrically controlled or
26  manually controlled pump device designed or marketed to be

 

 

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1  used to express milk from a human breast during lactation,
2  including the pump device and any battery, AC adapter, or
3  other power supply unit that is used to power the pump
4  device and is packaged and sold with the pump device at the
5  time of sale.
6  "Breast pump collection and storage supplies" means
7  items of tangible personal property designed or marketed
8  to be used in conjunction with a breast pump to collect
9  milk expressed from a human breast and to store collected
10  milk until it is ready for consumption.
11  "Breast pump collection and storage supplies"
12  includes, but is not limited to: breast shields and breast
13  shield connectors; breast pump tubes and tubing adapters;
14  breast pump valves and membranes; backflow protectors and
15  backflow protector adaptors; bottles and bottle caps
16  specific to the operation of the breast pump; and breast
17  milk storage bags.
18  "Breast pump collection and storage supplies" does not
19  include: (1) bottles and bottle caps not specific to the
20  operation of the breast pump; (2) breast pump travel bags
21  and other similar carrying accessories, including ice
22  packs, labels, and other similar products; (3) breast pump
23  cleaning supplies; (4) nursing bras, bra pads, breast
24  shells, and other similar products; and (5) creams,
25  ointments, and other similar products that relieve
26  breastfeeding-related symptoms or conditions of the

 

 

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1  breasts or nipples, unless sold as part of a breast pump
2  kit that is pre-packaged by the breast pump manufacturer
3  or distributor.
4  "Breast pump kit" means a kit that: (1) contains no
5  more than a breast pump, breast pump collection and
6  storage supplies, a rechargeable battery for operating the
7  breast pump, a breastmilk cooler, bottle stands, ice
8  packs, and a breast pump carrying case; and (2) is
9  pre-packaged as a breast pump kit by the breast pump
10  manufacturer or distributor.
11  (34) Tangible personal property sold by or on behalf of
12  the State Treasurer pursuant to the Revised Uniform Unclaimed
13  Property Act. This item (34) is exempt from the provisions of
14  Section 3-55.
15  (35) Beginning on January 1, 2024, tangible personal
16  property purchased by an active duty member of the armed
17  forces of the United States who presents valid military
18  identification and purchases the property using a form of
19  payment where the federal government is the payor. The member
20  of the armed forces must complete, at the point of sale, a form
21  prescribed by the Department of Revenue documenting that the
22  transaction is eligible for the exemption under this
23  paragraph. Retailers must keep the form as documentation of
24  the exemption in their records for a period of not less than 6
25  years. "Armed forces of the United States" means the United
26  States Army, Navy, Air Force, Space Force, Marine Corps, or

 

 

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1  Coast Guard. This paragraph is exempt from the provisions of
2  Section 3-55.
3  (36) Beginning July 1, 2024, home-delivered meals provided
4  to Medicare or Medicaid recipients when payment is made by an
5  intermediary, such as a Medicare Administrative Contractor, a
6  Managed Care Organization, or a Medicare Advantage
7  Organization, pursuant to a government contract. This
8  paragraph (36) (35) is exempt from the provisions of Section
9  3-55.
10  (37) (36) Beginning on January 1, 2026, as further defined
11  in Section 3-10, food prepared for immediate consumption and
12  transferred incident to a sale of service subject to this Act
13  or the Service Use Tax Act by an entity licensed under the
14  Hospital Licensing Act, the Nursing Home Care Act, the
15  Assisted Living and Shared Housing Act, the ID/DD Community
16  Care Act, the MC/DD Act, the Specialized Mental Health
17  Rehabilitation Act of 2013, or the Child Care Act of 1969 or by
18  an entity that holds a permit issued pursuant to the Life Care
19  Facilities Act. This item (37) (36) is exempt from the
20  provisions of Section 3-55.
21  (38) (37) Beginning on January 1, 2026, as further defined
22  in Section 3-10, food for human consumption that is to be
23  consumed off the premises where it is sold (other than
24  alcoholic beverages, food consisting of or infused with adult
25  use cannabis, soft drinks, candy, and food that has been
26  prepared for immediate consumption). This item (38) (37) is

 

 

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1  exempt from the provisions of Section 3-55.
2  (39) (36) The lease of the following tangible personal
3  property:
4  (1) computer software transferred subject to a license
5  that meets the following requirements:
6  (A) it is evidenced by a written agreement signed
7  by the licensor and the customer;
8  (i) an electronic agreement in which the
9  customer accepts the license by means of an
10  electronic signature that is verifiable and can be
11  authenticated and is attached to or made part of
12  the license will comply with this requirement;
13  (ii) a license agreement in which the customer
14  electronically accepts the terms by clicking "I
15  agree" does not comply with this requirement;
16  (B) it restricts the customer's duplication and
17  use of the software;
18  (C) it prohibits the customer from licensing,
19  sublicensing, or transferring the software to a third
20  party (except to a related party) without the
21  permission and continued control of the licensor;
22  (D) the licensor has a policy of providing another
23  copy at minimal or no charge if the customer loses or
24  damages the software, or of permitting the licensee to
25  make and keep an archival copy, and such policy is
26  either stated in the license agreement, supported by

 

 

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1  the licensor's books and records, or supported by a
2  notarized statement made under penalties of perjury by
3  the licensor; and
4  (E) the customer must destroy or return all copies
5  of the software to the licensor at the end of the
6  license period; this provision is deemed to be met, in
7  the case of a perpetual license, without being set
8  forth in the license agreement; and
9  (2) property that is subject to a tax on lease
10  receipts imposed by a home rule unit of local government
11  if the ordinance imposing that tax was adopted prior to
12  January 1, 2023; and .
13  (3) solar energy systems, as defined in Section 10-5
14  of the Property Tax Code.
15  (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
16  Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
17  75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
18  Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
19  eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
20  103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
21  7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995,
22  eff. 8-9-24; revised 11-26-24.)
23  Section 20. The Retailers' Occupation Tax Act is amended
24  by changing Section 2-5 as follows:

 

 

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1  (35 ILCS 120/2-5)
2  Sec. 2-5. Exemptions. Gross receipts from proceeds from
3  the sale, which, on and after January 1, 2025, includes the
4  lease, of the following tangible personal property are exempt
5  from the tax imposed by this Act:
6  (1) Farm chemicals.
7  (2) Farm machinery and equipment, both new and used,
8  including that manufactured on special order, certified by
9  the purchaser to be used primarily for production
10  agriculture or State or federal agricultural programs,
11  including individual replacement parts for the machinery
12  and equipment, including machinery and equipment purchased
13  for lease, and including implements of husbandry defined
14  in Section 1-130 of the Illinois Vehicle Code, farm
15  machinery and agricultural chemical and fertilizer
16  spreaders, and nurse wagons required to be registered
17  under Section 3-809 of the Illinois Vehicle Code, but
18  excluding other motor vehicles required to be registered
19  under the Illinois Vehicle Code. Horticultural polyhouses
20  or hoop houses used for propagating, growing, or
21  overwintering plants shall be considered farm machinery
22  and equipment under this item (2). Agricultural chemical
23  tender tanks and dry boxes shall include units sold
24  separately from a motor vehicle required to be licensed
25  and units sold mounted on a motor vehicle required to be
26  licensed, if the selling price of the tender is separately

 

 

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1  stated.
2  Farm machinery and equipment shall include precision
3  farming equipment that is installed or purchased to be
4  installed on farm machinery and equipment including, but
5  not limited to, tractors, harvesters, sprayers, planters,
6  seeders, or spreaders. Precision farming equipment
7  includes, but is not limited to, soil testing sensors,
8  computers, monitors, software, global positioning and
9  mapping systems, and other such equipment.
10  Farm machinery and equipment also includes computers,
11  sensors, software, and related equipment used primarily in
12  the computer-assisted operation of production agriculture
13  facilities, equipment, and activities such as, but not
14  limited to, the collection, monitoring, and correlation of
15  animal and crop data for the purpose of formulating animal
16  diets and agricultural chemicals.
17  Beginning on January 1, 2024, farm machinery and
18  equipment also includes electrical power generation
19  equipment used primarily for production agriculture.
20  This item (2) is exempt from the provisions of Section
21  2-70.
22  (3) Until July 1, 2003, distillation machinery and
23  equipment, sold as a unit or kit, assembled or installed
24  by the retailer, certified by the user to be used only for
25  the production of ethyl alcohol that will be used for
26  consumption as motor fuel or as a component of motor fuel

 

 

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1  for the personal use of the user, and not subject to sale
2  or resale.
3  (4) Until July 1, 2003 and beginning again September
4  1, 2004 through August 30, 2014, graphic arts machinery
5  and equipment, including repair and replacement parts,
6  both new and used, and including that manufactured on
7  special order or purchased for lease, certified by the
8  purchaser to be used primarily for graphic arts
9  production. Equipment includes chemicals or chemicals
10  acting as catalysts but only if the chemicals or chemicals
11  acting as catalysts effect a direct and immediate change
12  upon a graphic arts product. Beginning on July 1, 2017,
13  graphic arts machinery and equipment is included in the
14  manufacturing and assembling machinery and equipment
15  exemption under paragraph (14).
16  (5) A motor vehicle that is used for automobile
17  renting, as defined in the Automobile Renting Occupation
18  and Use Tax Act. This paragraph is exempt from the
19  provisions of Section 2-70.
20  (6) Personal property sold by a teacher-sponsored
21  student organization affiliated with an elementary or
22  secondary school located in Illinois.
23  (7) Until July 1, 2003, proceeds of that portion of
24  the selling price of a passenger car the sale of which is
25  subject to the Replacement Vehicle Tax.
26  (8) Personal property sold to an Illinois county fair

 

 

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

 

 

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1  corporation, society, association, foundation, or
2  institution organized and operated exclusively for
3  charitable, religious, or educational purposes, or to a
4  not-for-profit corporation, society, association,
5  foundation, institution, or organization that has no
6  compensated officers or employees and that is organized
7  and operated primarily for the recreation of persons 55
8  years of age or older. A limited liability company may
9  qualify for the exemption under this paragraph only if the
10  limited liability company is organized and operated
11  exclusively for educational purposes. On and after July 1,
12  1987, however, no entity otherwise eligible for this
13  exemption shall make tax-free purchases unless it has an
14  active identification number issued by the Department.
15  (12) (Blank).
16  (12-5) On and after July 1, 2003 and through June 30,
17  2004, motor vehicles of the second division with a gross
18  vehicle weight in excess of 8,000 pounds that are subject
19  to the commercial distribution fee imposed under Section
20  3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
21  2004 and through June 30, 2005, the use in this State of
22  motor vehicles of the second division: (i) with a gross
23  vehicle weight rating in excess of 8,000 pounds; (ii) that
24  are subject to the commercial distribution fee imposed
25  under Section 3-815.1 of the Illinois Vehicle Code; and
26  (iii) that are primarily used for commercial purposes.

 

 

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1  Through June 30, 2005, this exemption applies to repair
2  and replacement parts added after the initial purchase of
3  such a motor vehicle if that motor vehicle is used in a
4  manner that would qualify for the rolling stock exemption
5  otherwise provided for in this Act. For purposes of this
6  paragraph, "used for commercial purposes" means the
7  transportation of persons or property in furtherance of
8  any commercial or industrial enterprise whether for-hire
9  or not.
10  (13) Proceeds from sales to owners or lessors,
11  lessees, or shippers of tangible personal property that is
12  utilized by interstate carriers for hire for use as
13  rolling stock moving in interstate commerce and equipment
14  operated by a telecommunications provider, licensed as a
15  common carrier by the Federal Communications Commission,
16  which is permanently installed in or affixed to aircraft
17  moving in interstate commerce.
18  (14) Machinery and equipment that will be used by the
19  purchaser, or a lessee of the purchaser, primarily in the
20  process of manufacturing or assembling tangible personal
21  property for wholesale or retail sale or lease, whether
22  the sale or lease is made directly by the manufacturer or
23  by some other person, whether the materials used in the
24  process are owned by the manufacturer or some other
25  person, or whether the sale or lease is made apart from or
26  as an incident to the seller's engaging in the service

 

 

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1  occupation of producing machines, tools, dies, jigs,
2  patterns, gauges, or other similar items of no commercial
3  value on special order for a particular purchaser. The
4  exemption provided by this paragraph (14) does not include
5  machinery and equipment used in (i) the generation of
6  electricity for wholesale or retail sale; (ii) the
7  generation or treatment of natural or artificial gas for
8  wholesale or retail sale that is delivered to customers
9  through pipes, pipelines, or mains; or (iii) the treatment
10  of water for wholesale or retail sale that is delivered to
11  customers through pipes, pipelines, or mains. The
12  provisions of Public Act 98-583 are declaratory of
13  existing law as to the meaning and scope of this
14  exemption. Beginning on July 1, 2017, the exemption
15  provided by this paragraph (14) includes, but is not
16  limited to, graphic arts machinery and equipment, as
17  defined in paragraph (4) of this Section.
18  (15) Proceeds of mandatory service charges separately
19  stated on customers' bills for purchase and consumption of
20  food and beverages, to the extent that the proceeds of the
21  service charge are in fact turned over as tips or as a
22  substitute for tips to the employees who participate
23  directly in preparing, serving, hosting or cleaning up the
24  food or beverage function with respect to which the
25  service charge is imposed.
26  (16) Tangible personal property sold to a purchaser if

 

 

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1  the purchaser is exempt from use tax by operation of
2  federal law. This paragraph is exempt from the provisions
3  of Section 2-70.
4  (17) Tangible personal property sold to a common
5  carrier by rail or motor that receives the physical
6  possession of the property in Illinois and that transports
7  the property, or shares with another common carrier in the
8  transportation of the property, out of Illinois on a
9  standard uniform bill of lading showing the seller of the
10  property as the shipper or consignor of the property to a
11  destination outside Illinois, for use outside Illinois.
12  (18) Legal tender, currency, medallions, or gold or
13  silver coinage issued by the State of Illinois, the
14  government of the United States of America, or the
15  government of any foreign country, and bullion.
16  (19) Until July 1, 2003, oil field exploration,
17  drilling, and production equipment, including (i) rigs and
18  parts of rigs, rotary rigs, cable tool rigs, and workover
19  rigs, (ii) pipe and tubular goods, including casing and
20  drill strings, (iii) pumps and pump-jack units, (iv)
21  storage tanks and flow lines, (v) any individual
22  replacement part for oil field exploration, drilling, and
23  production equipment, and (vi) machinery and equipment
24  purchased for lease; but excluding motor vehicles required
25  to be registered under the Illinois Vehicle Code.
26  (20) Photoprocessing machinery and equipment,

 

 

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1  including repair and replacement parts, both new and used,
2  including that manufactured on special order, certified by
3  the purchaser to be used primarily for photoprocessing,
4  and including photoprocessing machinery and equipment
5  purchased for lease.
6  (21) Until July 1, 2028, coal and aggregate
7  exploration, mining, off-highway hauling, processing,
8  maintenance, and reclamation equipment, including
9  replacement parts and equipment, and including equipment
10  purchased for lease, but excluding motor vehicles required
11  to be registered under the Illinois Vehicle Code. The
12  changes made to this Section by Public Act 97-767 apply on
13  and after July 1, 2003, but no claim for credit or refund
14  is allowed on or after August 16, 2013 (the effective date
15  of Public Act 98-456) for such taxes paid during the
16  period beginning July 1, 2003 and ending on August 16,
17  2013 (the effective date of Public Act 98-456).
18  (22) Until June 30, 2013, fuel and petroleum products
19  sold to or used by an air carrier, certified by the carrier
20  to be used for consumption, shipment, or storage in the
21  conduct of its business as an air common carrier, for a
22  flight destined for or returning from a location or
23  locations outside the United States without regard to
24  previous or subsequent domestic stopovers.
25  Beginning July 1, 2013, fuel and petroleum products
26  sold to or used by an air carrier, certified by the carrier

 

 

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1  to be used for consumption, shipment, or storage in the
2  conduct of its business as an air common carrier, for a
3  flight that (i) is engaged in foreign trade or is engaged
4  in trade between the United States and any of its
5  possessions and (ii) transports at least one individual or
6  package for hire from the city of origination to the city
7  of final destination on the same aircraft, without regard
8  to a change in the flight number of that aircraft.
9  (23) A transaction in which the purchase order is
10  received by a florist who is located outside Illinois, but
11  who has a florist located in Illinois deliver the property
12  to the purchaser or the purchaser's donee in Illinois.
13  (24) Fuel consumed or used in the operation of ships,
14  barges, or vessels that are used primarily in or for the
15  transportation of property or the conveyance of persons
16  for hire on rivers bordering on this State if the fuel is
17  delivered by the seller to the purchaser's barge, ship, or
18  vessel while it is afloat upon that bordering river.
19  (25) Except as provided in item (25-5) of this
20  Section, a motor vehicle sold in this State to a
21  nonresident even though the motor vehicle is delivered to
22  the nonresident in this State, if the motor vehicle is not
23  to be titled in this State, and if a drive-away permit is
24  issued to the motor vehicle as provided in Section 3-603
25  of the Illinois Vehicle Code or if the nonresident
26  purchaser has vehicle registration plates to transfer to

 

 

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1  the motor vehicle upon returning to his or her home state.
2  The issuance of the drive-away permit or having the
3  out-of-state registration plates to be transferred is
4  prima facie evidence that the motor vehicle will not be
5  titled in this State.
6  (25-5) The exemption under item (25) does not apply if
7  the state in which the motor vehicle will be titled does
8  not allow a reciprocal exemption for a motor vehicle sold
9  and delivered in that state to an Illinois resident but
10  titled in Illinois. The tax collected under this Act on
11  the sale of a motor vehicle in this State to a resident of
12  another state that does not allow a reciprocal exemption
13  shall be imposed at a rate equal to the state's rate of tax
14  on taxable property in the state in which the purchaser is
15  a resident, except that the tax shall not exceed the tax
16  that would otherwise be imposed under this Act. At the
17  time of the sale, the purchaser shall execute a statement,
18  signed under penalty of perjury, of his or her intent to
19  title the vehicle in the state in which the purchaser is a
20  resident within 30 days after the sale and of the fact of
21  the payment to the State of Illinois of tax in an amount
22  equivalent to the state's rate of tax on taxable property
23  in his or her state of residence and shall submit the
24  statement to the appropriate tax collection agency in his
25  or her state of residence. In addition, the retailer must
26  retain a signed copy of the statement in his or her

 

 

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1  records. Nothing in this item shall be construed to
2  require the removal of the vehicle from this state
3  following the filing of an intent to title the vehicle in
4  the purchaser's state of residence if the purchaser titles
5  the vehicle in his or her state of residence within 30 days
6  after the date of sale. The tax collected under this Act in
7  accordance with this item (25-5) shall be proportionately
8  distributed as if the tax were collected at the 6.25%
9  general rate imposed under this Act.
10  (25-7) Beginning on July 1, 2007, no tax is imposed
11  under this Act on the sale of an aircraft, as defined in
12  Section 3 of the Illinois Aeronautics Act, if all of the
13  following conditions are met:
14  (1) the aircraft leaves this State within 15 days
15  after the later of either the issuance of the final
16  billing for the sale of the aircraft, or the
17  authorized approval for return to service, completion
18  of the maintenance record entry, and completion of the
19  test flight and ground test for inspection, as
20  required by 14 CFR 91.407;
21  (2) the aircraft is not based or registered in
22  this State after the sale of the aircraft; and
23  (3) the seller retains in his or her books and
24  records and provides to the Department a signed and
25  dated certification from the purchaser, on a form
26  prescribed by the Department, certifying that the

 

 

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1  requirements of this item (25-7) are met. The
2  certificate must also include the name and address of
3  the purchaser, the address of the location where the
4  aircraft is to be titled or registered, the address of
5  the primary physical location of the aircraft, and
6  other information that the Department may reasonably
7  require.
8  For purposes of this item (25-7):
9  "Based in this State" means hangared, stored, or
10  otherwise used, excluding post-sale customizations as
11  defined in this Section, for 10 or more days in each
12  12-month period immediately following the date of the sale
13  of the aircraft.
14  "Registered in this State" means an aircraft
15  registered with the Department of Transportation,
16  Aeronautics Division, or titled or registered with the
17  Federal Aviation Administration to an address located in
18  this State.
19  This paragraph (25-7) is exempt from the provisions of
20  Section 2-70.
21  (26) Semen used for artificial insemination of
22  livestock for direct agricultural production.
23  (27) Horses, or interests in horses, registered with
24  and meeting the requirements of any of the Arabian Horse
25  Club Registry of America, Appaloosa Horse Club, American
26  Quarter Horse Association, United States Trotting

 

 

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1  Association, or Jockey Club, as appropriate, used for
2  purposes of breeding or racing for prizes. This item (27)
3  is exempt from the provisions of Section 2-70, and the
4  exemption provided for under this item (27) applies for
5  all periods beginning May 30, 1995, but no claim for
6  credit or refund is allowed on or after January 1, 2008
7  (the effective date of Public Act 95-88) for such taxes
8  paid during the period beginning May 30, 2000 and ending
9  on January 1, 2008 (the effective date of Public Act
10  95-88).
11  (28) Computers and communications equipment utilized
12  for any hospital purpose and equipment used in the
13  diagnosis, analysis, or treatment of hospital patients
14  sold to a lessor who leases the equipment, under a lease of
15  one year or longer executed or in effect at the time of the
16  purchase, to a hospital that has been issued an active tax
17  exemption identification number by the Department under
18  Section 1g of this Act.
19  (29) Personal property sold to a lessor who leases the
20  property, under a lease of one year or longer executed or
21  in effect at the time of the purchase, to a governmental
22  body that has been issued an active tax exemption
23  identification number by the Department under Section 1g
24  of this Act.
25  (30) Beginning with taxable years ending on or after
26  December 31, 1995 and ending with taxable years ending on

 

 

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1  or before December 31, 2004, personal property that is
2  donated for disaster relief to be used in a State or
3  federally declared disaster area in Illinois or bordering
4  Illinois by a manufacturer or retailer that is registered
5  in this State to a corporation, society, association,
6  foundation, or institution that has been issued a sales
7  tax exemption identification number by the Department that
8  assists victims of the disaster who reside within the
9  declared disaster area.
10  (31) Beginning with taxable years ending on or after
11  December 31, 1995 and ending with taxable years ending on
12  or before December 31, 2004, personal property that is
13  used in the performance of infrastructure repairs in this
14  State, including, but not limited to, municipal roads and
15  streets, access roads, bridges, sidewalks, waste disposal
16  systems, water and sewer line extensions, water
17  distribution and purification facilities, storm water
18  drainage and retention facilities, and sewage treatment
19  facilities, resulting from a State or federally declared
20  disaster in Illinois or bordering Illinois when such
21  repairs are initiated on facilities located in the
22  declared disaster area within 6 months after the disaster.
23  (32) Beginning July 1, 1999, game or game birds sold
24  at a "game breeding and hunting preserve area" as that
25  term is used in the Wildlife Code. This paragraph is
26  exempt from the provisions of Section 2-70.

 

 

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1  (33) A motor vehicle, as that term is defined in
2  Section 1-146 of the Illinois Vehicle Code, that is
3  donated to a corporation, limited liability company,
4  society, association, foundation, or institution that is
5  determined by the Department to be organized and operated
6  exclusively for educational purposes. For purposes of this
7  exemption, "a corporation, limited liability company,
8  society, association, foundation, or institution organized
9  and operated exclusively for educational purposes" means
10  all tax-supported public schools, private schools that
11  offer systematic instruction in useful branches of
12  learning by methods common to public schools and that
13  compare favorably in their scope and intensity with the
14  course of study presented in tax-supported schools, and
15  vocational or technical schools or institutes organized
16  and operated exclusively to provide a course of study of
17  not less than 6 weeks duration and designed to prepare
18  individuals to follow a trade or to pursue a manual,
19  technical, mechanical, industrial, business, or commercial
20  occupation.
21  (34) Beginning January 1, 2000, personal property,
22  including food, purchased through fundraising events for
23  the benefit of a public or private elementary or secondary
24  school, a group of those schools, or one or more school
25  districts if the events are sponsored by an entity
26  recognized by the school district that consists primarily

 

 

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1  of volunteers and includes parents and teachers of the
2  school children. This paragraph does not apply to
3  fundraising events (i) for the benefit of private home
4  instruction or (ii) for which the fundraising entity
5  purchases the personal property sold at the events from
6  another individual or entity that sold the property for
7  the purpose of resale by the fundraising entity and that
8  profits from the sale to the fundraising entity. This
9  paragraph is exempt from the provisions of Section 2-70.
10  (35) Beginning January 1, 2000 and through December
11  31, 2001, new or used automatic vending machines that
12  prepare and serve hot food and beverages, including
13  coffee, soup, and other items, and replacement parts for
14  these machines. Beginning January 1, 2002 and through June
15  30, 2003, machines and parts for machines used in
16  commercial, coin-operated amusement and vending business
17  if a use or occupation tax is paid on the gross receipts
18  derived from the use of the commercial, coin-operated
19  amusement and vending machines. This paragraph is exempt
20  from the provisions of Section 2-70.
21  (35-5) Beginning August 23, 2001 and through June 30,
22  2016, food for human consumption that is to be consumed
23  off the premises where it is sold (other than alcoholic
24  beverages, soft drinks, and food that has been prepared
25  for immediate consumption) and prescription and
26  nonprescription medicines, drugs, medical appliances, and

 

 

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1  insulin, urine testing materials, syringes, and needles
2  used by diabetics, for human use, when purchased for use
3  by a person receiving medical assistance under Article V
4  of the Illinois Public Aid Code who resides in a licensed
5  long-term care facility, as defined in the Nursing Home
6  Care Act, or a licensed facility as defined in the ID/DD
7  Community Care Act, the MC/DD Act, or the Specialized
8  Mental Health Rehabilitation Act of 2013.
9  (36) Beginning August 2, 2001, computers and
10  communications equipment utilized for any hospital purpose
11  and equipment used in the diagnosis, analysis, or
12  treatment of hospital patients sold to a lessor who leases
13  the equipment, under a lease of one year or longer
14  executed or in effect at the time of the purchase, to a
15  hospital that has been issued an active tax exemption
16  identification number by the Department under Section 1g
17  of this Act. This paragraph is exempt from the provisions
18  of Section 2-70.
19  (37) Beginning August 2, 2001, personal property sold
20  to a lessor who leases the property, under a lease of one
21  year or longer executed or in effect at the time of the
22  purchase, to a governmental body that has been issued an
23  active tax exemption identification number by the
24  Department under Section 1g of this Act. This paragraph is
25  exempt from the provisions of Section 2-70.
26  (38) Beginning on January 1, 2002 and through June 30,

 

 

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1  2016, tangible personal property purchased from an
2  Illinois retailer by a taxpayer engaged in centralized
3  purchasing activities in Illinois who will, upon receipt
4  of the property in Illinois, temporarily store the
5  property in Illinois (i) for the purpose of subsequently
6  transporting it outside this State for use or consumption
7  thereafter solely outside this State or (ii) for the
8  purpose of being processed, fabricated, or manufactured
9  into, attached to, or incorporated into other tangible
10  personal property to be transported outside this State and
11  thereafter used or consumed solely outside this State. The
12  Director of Revenue shall, pursuant to rules adopted in
13  accordance with the Illinois Administrative Procedure Act,
14  issue a permit to any taxpayer in good standing with the
15  Department who is eligible for the exemption under this
16  paragraph (38). The permit issued under this paragraph
17  (38) shall authorize the holder, to the extent and in the
18  manner specified in the rules adopted under this Act, to
19  purchase tangible personal property from a retailer exempt
20  from the taxes imposed by this Act. Taxpayers shall
21  maintain all necessary books and records to substantiate
22  the use and consumption of all such tangible personal
23  property outside of the State of Illinois.
24  (39) Beginning January 1, 2008, tangible personal
25  property used in the construction or maintenance of a
26  community water supply, as defined under Section 3.145 of

 

 

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1  the Environmental Protection Act, that is operated by a
2  not-for-profit corporation that holds a valid water supply
3  permit issued under Title IV of the Environmental
4  Protection Act. This paragraph is exempt from the
5  provisions of Section 2-70.
6  (40) Beginning January 1, 2010 and continuing through
7  December 31, 2029, materials, parts, equipment,
8  components, and furnishings incorporated into or upon an
9  aircraft as part of the modification, refurbishment,
10  completion, replacement, repair, or maintenance of the
11  aircraft. This exemption includes consumable supplies used
12  in the modification, refurbishment, completion,
13  replacement, repair, and maintenance of aircraft. However,
14  until January 1, 2024, this exemption excludes any
15  materials, parts, equipment, components, and consumable
16  supplies used in the modification, replacement, repair,
17  and maintenance of aircraft engines or power plants,
18  whether such engines or power plants are installed or
19  uninstalled upon any such aircraft. "Consumable supplies"
20  include, but are not limited to, adhesive, tape,
21  sandpaper, general purpose lubricants, cleaning solution,
22  latex gloves, and protective films.
23  Beginning January 1, 2010 and continuing through
24  December 31, 2023, this exemption applies only to the sale
25  of qualifying tangible personal property to persons who
26  modify, refurbish, complete, replace, or maintain an

 

 

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1  aircraft and who (i) hold an Air Agency Certificate and
2  are empowered to operate an approved repair station by the
3  Federal Aviation Administration, (ii) have a Class IV
4  Rating, and (iii) conduct operations in accordance with
5  Part 145 of the Federal Aviation Regulations. The
6  exemption does not include aircraft operated by a
7  commercial air carrier providing scheduled passenger air
8  service pursuant to authority issued under Part 121 or
9  Part 129 of the Federal Aviation Regulations. From January
10  1, 2024 through December 31, 2029, this exemption applies
11  only to the sale of qualifying tangible personal property
12  to: (A) persons who modify, refurbish, complete, repair,
13  replace, or maintain aircraft and who (i) hold an Air
14  Agency Certificate and are empowered to operate an
15  approved repair station by the Federal Aviation
16  Administration, (ii) have a Class IV Rating, and (iii)
17  conduct operations in accordance with Part 145 of the
18  Federal Aviation Regulations; and (B) persons who engage
19  in the modification, replacement, repair, and maintenance
20  of aircraft engines or power plants without regard to
21  whether or not those persons meet the qualifications of
22  item (A).
23  The changes made to this paragraph (40) by Public Act
24  98-534 are declarative of existing law. It is the intent
25  of the General Assembly that the exemption under this
26  paragraph (40) applies continuously from January 1, 2010

 

 

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1  through December 31, 2024; however, no claim for credit or
2  refund is allowed for taxes paid as a result of the
3  disallowance of this exemption on or after January 1, 2015
4  and prior to February 5, 2020 (the effective date of
5  Public Act 101-629).
6  (41) Tangible personal property sold to a
7  public-facilities corporation, as described in Section
8  11-65-10 of the Illinois Municipal Code, for purposes of
9  constructing or furnishing a municipal convention hall,
10  but only if the legal title to the municipal convention
11  hall is transferred to the municipality without any
12  further consideration by or on behalf of the municipality
13  at the time of the completion of the municipal convention
14  hall or upon the retirement or redemption of any bonds or
15  other debt instruments issued by the public-facilities
16  corporation in connection with the development of the
17  municipal convention hall. This exemption includes
18  existing public-facilities corporations as provided in
19  Section 11-65-25 of the Illinois Municipal Code. This
20  paragraph is exempt from the provisions of Section 2-70.
21  (42) Beginning January 1, 2017 and through December
22  31, 2026, menstrual pads, tampons, and menstrual cups.
23  (43) Merchandise that is subject to the Rental
24  Purchase Agreement Occupation and Use Tax. The purchaser
25  must certify that the item is purchased to be rented
26  subject to a rental-purchase agreement, as defined in the

 

 

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1  Rental-Purchase Agreement Act, and provide proof of
2  registration under the Rental Purchase Agreement
3  Occupation and Use Tax Act. This paragraph is exempt from
4  the provisions of Section 2-70.
5  (44) Qualified tangible personal property used in the
6  construction or operation of a data center that has been
7  granted a certificate of exemption by the Department of
8  Commerce and Economic Opportunity, whether that tangible
9  personal property is purchased by the owner, operator, or
10  tenant of the data center or by a contractor or
11  subcontractor of the owner, operator, or tenant. Data
12  centers that would have qualified for a certificate of
13  exemption prior to January 1, 2020 had Public Act 101-31
14  been in effect, may apply for and obtain an exemption for
15  subsequent purchases of computer equipment or enabling
16  software purchased or leased to upgrade, supplement, or
17  replace computer equipment or enabling software purchased
18  or leased in the original investment that would have
19  qualified.
20  The Department of Commerce and Economic Opportunity
21  shall grant a certificate of exemption under this item
22  (44) to qualified data centers as defined by Section
23  605-1025 of the Department of Commerce and Economic
24  Opportunity Law of the Civil Administrative Code of
25  Illinois.
26  For the purposes of this item (44):

 

 

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1  "Data center" means a building or a series of
2  buildings rehabilitated or constructed to house
3  working servers in one physical location or multiple
4  sites within the State of Illinois.
5  "Qualified tangible personal property" means:
6  electrical systems and equipment; climate control and
7  chilling equipment and systems; mechanical systems and
8  equipment; monitoring and secure systems; emergency
9  generators; hardware; computers; servers; data storage
10  devices; network connectivity equipment; racks;
11  cabinets; telecommunications cabling infrastructure;
12  raised floor systems; peripheral components or
13  systems; software; mechanical, electrical, or plumbing
14  systems; battery systems; cooling systems and towers;
15  temperature control systems; other cabling; and other
16  data center infrastructure equipment and systems
17  necessary to operate qualified tangible personal
18  property, including fixtures; and component parts of
19  any of the foregoing, including installation,
20  maintenance, repair, refurbishment, and replacement of
21  qualified tangible personal property to generate,
22  transform, transmit, distribute, or manage electricity
23  necessary to operate qualified tangible personal
24  property; and all other tangible personal property
25  that is essential to the operations of a computer data
26  center. The term "qualified tangible personal

 

 

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1  property" also includes building materials physically
2  incorporated into the qualifying data center. To
3  document the exemption allowed under this Section, the
4  retailer must obtain from the purchaser a copy of the
5  certificate of eligibility issued by the Department of
6  Commerce and Economic Opportunity.
7  This item (44) is exempt from the provisions of
8  Section 2-70.
9  (45) Beginning January 1, 2020 and through December
10  31, 2020, sales of tangible personal property made by a
11  marketplace seller over a marketplace for which tax is due
12  under this Act but for which use tax has been collected and
13  remitted to the Department by a marketplace facilitator
14  under Section 2d of the Use Tax Act are exempt from tax
15  under this Act. A marketplace seller claiming this
16  exemption shall maintain books and records demonstrating
17  that the use tax on such sales has been collected and
18  remitted by a marketplace facilitator. Marketplace sellers
19  that have properly remitted tax under this Act on such
20  sales may file a claim for credit as provided in Section 6
21  of this Act. No claim is allowed, however, for such taxes
22  for which a credit or refund has been issued to the
23  marketplace facilitator under the Use Tax Act, or for
24  which the marketplace facilitator has filed a claim for
25  credit or refund under the Use Tax Act.
26  (46) Beginning July 1, 2022, breast pumps, breast pump

 

 

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1  collection and storage supplies, and breast pump kits.
2  This item (46) is exempt from the provisions of Section
3  2-70. As used in this item (46):
4  "Breast pump" means an electrically controlled or
5  manually controlled pump device designed or marketed to be
6  used to express milk from a human breast during lactation,
7  including the pump device and any battery, AC adapter, or
8  other power supply unit that is used to power the pump
9  device and is packaged and sold with the pump device at the
10  time of sale.
11  "Breast pump collection and storage supplies" means
12  items of tangible personal property designed or marketed
13  to be used in conjunction with a breast pump to collect
14  milk expressed from a human breast and to store collected
15  milk until it is ready for consumption.
16  "Breast pump collection and storage supplies"
17  includes, but is not limited to: breast shields and breast
18  shield connectors; breast pump tubes and tubing adapters;
19  breast pump valves and membranes; backflow protectors and
20  backflow protector adaptors; bottles and bottle caps
21  specific to the operation of the breast pump; and breast
22  milk storage bags.
23  "Breast pump collection and storage supplies" does not
24  include: (1) bottles and bottle caps not specific to the
25  operation of the breast pump; (2) breast pump travel bags
26  and other similar carrying accessories, including ice

 

 

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1  packs, labels, and other similar products; (3) breast pump
2  cleaning supplies; (4) nursing bras, bra pads, breast
3  shells, and other similar products; and (5) creams,
4  ointments, and other similar products that relieve
5  breastfeeding-related symptoms or conditions of the
6  breasts or nipples, unless sold as part of a breast pump
7  kit that is pre-packaged by the breast pump manufacturer
8  or distributor.
9  "Breast pump kit" means a kit that: (1) contains no
10  more than a breast pump, breast pump collection and
11  storage supplies, a rechargeable battery for operating the
12  breast pump, a breastmilk cooler, bottle stands, ice
13  packs, and a breast pump carrying case; and (2) is
14  pre-packaged as a breast pump kit by the breast pump
15  manufacturer or distributor.
16  (47) Tangible personal property sold by or on behalf
17  of the State Treasurer pursuant to the Revised Uniform
18  Unclaimed Property Act. This item (47) is exempt from the
19  provisions of Section 2-70.
20  (48) Beginning on January 1, 2024, tangible personal
21  property purchased by an active duty member of the armed
22  forces of the United States who presents valid military
23  identification and purchases the property using a form of
24  payment where the federal government is the payor. The
25  member of the armed forces must complete, at the point of
26  sale, a form prescribed by the Department of Revenue

 

 

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1  documenting that the transaction is eligible for the
2  exemption under this paragraph. Retailers must keep the
3  form as documentation of the exemption in their records
4  for a period of not less than 6 years. "Armed forces of the
5  United States" means the United States Army, Navy, Air
6  Force, Space Force, Marine Corps, or Coast Guard. This
7  paragraph is exempt from the provisions of Section 2-70.
8  (49) Beginning July 1, 2024, home-delivered meals
9  provided to Medicare or Medicaid recipients when payment
10  is made by an intermediary, such as a Medicare
11  Administrative Contractor, a Managed Care Organization, or
12  a Medicare Advantage Organization, pursuant to a
13  government contract. This paragraph (49) is exempt from
14  the provisions of Section 2-70.
15  (50) (49) Beginning on January 1, 2026, as further
16  defined in Section 2-10, food for human consumption that
17  is to be consumed off the premises where it is sold (other
18  than alcoholic beverages, food consisting of or infused
19  with adult use cannabis, soft drinks, candy, and food that
20  has been prepared for immediate consumption). This item
21  (50) (49) is exempt from the provisions of Section 2-70.
22  (51) (49) Gross receipts from the lease of the
23  following tangible personal property:
24  (1) computer software transferred subject to a
25  license that meets the following requirements:
26  (A) it is evidenced by a written agreement

 

 

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

 

 

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