Illinois 2025-2026 Regular Session

Illinois Senate Bill SB2028 Compare Versions

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

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2028 Introduced 2/6/2025, by Sen. Celina Villanueva 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. Creates an exemption for equipment and materials placed in service on or after January 1, 2026 that are incorporated into or used in the business of providing broadband services. Effective immediately. LRB104 10539 HLH 20615 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2028 Introduced 2/6/2025, by Sen. Celina Villanueva 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. Creates an exemption for equipment and materials placed in service on or after January 1, 2026 that are incorporated into or used in the business of providing broadband services. Effective immediately. LRB104 10539 HLH 20615 b LRB104 10539 HLH 20615 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2028 Introduced 2/6/2025, by Sen. Celina Villanueva SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5 35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5
4	4	35 ILCS 105/3-5
5	5	35 ILCS 110/3-5
6	6	35 ILCS 115/3-5
7	7	35 ILCS 120/2-5
8	8	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Creates an exemption for equipment and materials placed in service on or after January 1, 2026 that are incorporated into or used in the business of providing broadband services. Effective immediately.
9	9	LRB104 10539 HLH 20615 b LRB104 10539 HLH 20615 b
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11	11	A BILL FOR
12	12	SB2028LRB104 10539 HLH 20615 b SB2028 LRB104 10539 HLH 20615 b
13	13	SB2028 LRB104 10539 HLH 20615 b
14	14	1 AN ACT concerning revenue.
15	15	2 Be it enacted by the People of the State of Illinois,
16	16	3 represented in the General Assembly:
17	17	4 Section 5. The Use Tax Act is amended by changing Section
18	18	5 3-5 as follows:
19	19	6 (35 ILCS 105/3-5)
20	20	7 Sec. 3-5. Exemptions. Use, which, on and after January 1,
21	21	8 2025, includes use by a lessee, of the following tangible
22	22	9 personal property is exempt from the tax imposed by this Act:
23	23	10 (1) Personal property purchased from a corporation,
24	24	11 society, association, foundation, institution, or
25	25	12 organization, other than a limited liability company, that is
26	26	13 organized and operated as a not-for-profit service enterprise
27	27	14 for the benefit of persons 65 years of age or older if the
28	28	15 personal property was not purchased by the enterprise for the
29	29	16 purpose of resale by the enterprise.
30	30	17 (2) Personal property purchased by a not-for-profit
31	31	18 Illinois county fair association for use in conducting,
32	32	19 operating, or promoting the county fair.
33	33	20 (3) Personal property purchased by a not-for-profit arts
34	34	21 or cultural organization that establishes, by proof required
35	35	22 by the Department by rule, that it has received an exemption
36	36	23 under Section 501(c)(3) of the Internal Revenue Code and that
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40	40	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2028 Introduced 2/6/2025, by Sen. Celina Villanueva SYNOPSIS AS INTRODUCED:
41	41	35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5 35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5
42	42	35 ILCS 105/3-5
43	43	35 ILCS 110/3-5
44	44	35 ILCS 115/3-5
45	45	35 ILCS 120/2-5
46	46	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Creates an exemption for equipment and materials placed in service on or after January 1, 2026 that are incorporated into or used in the business of providing broadband services. Effective immediately.
47	47	LRB104 10539 HLH 20615 b LRB104 10539 HLH 20615 b
48	48	LRB104 10539 HLH 20615 b
49	49	A BILL FOR
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55	55	35 ILCS 105/3-5
56	56	35 ILCS 110/3-5
57	57	35 ILCS 115/3-5
58	58	35 ILCS 120/2-5
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77	77	1 is organized and operated primarily for the presentation or
78	78	2 support of arts or cultural programming, activities, or
79	79	3 services. These organizations include, but are not limited to,
80	80	4 music and dramatic arts organizations such as symphony
81	81	5 orchestras and theatrical groups, arts and cultural service
82	82	6 organizations, local arts councils, visual arts organizations,
83	83	7 and media arts organizations. On and after July 1, 2001 (the
84	84	8 effective date of Public Act 92-35), however, an entity
85	85	9 otherwise eligible for this exemption shall not make tax-free
86	86	10 purchases unless it has an active identification number issued
87	87	11 by the Department.
88	88	12 (4) Except as otherwise provided in this Act, personal
89	89	13 property purchased by a governmental body, by a corporation,
90	90	14 society, association, foundation, or institution organized and
91	91	15 operated exclusively for charitable, religious, or educational
92	92	16 purposes, or by a not-for-profit corporation, society,
93	93	17 association, foundation, institution, or organization that has
94	94	18 no compensated officers or employees and that is organized and
95	95	19 operated primarily for the recreation of persons 55 years of
96	96	20 age or older. A limited liability company may qualify for the
97	97	21 exemption under this paragraph only if the limited liability
98	98	22 company is organized and operated exclusively for educational
99	99	23 purposes. On and after July 1, 1987, however, no entity
100	100	24 otherwise eligible for this exemption shall make tax-free
101	101	25 purchases unless it has an active exemption identification
102	102	26 number issued by the Department.
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113	113	1 (5) Until July 1, 2003, a passenger car that is a
114	114	2 replacement vehicle to the extent that the purchase price of
115	115	3 the car is subject to the Replacement Vehicle Tax.
116	116	4 (6) Until July 1, 2003 and beginning again on September 1,
117	117	5 2004 through August 30, 2014, graphic arts machinery and
118	118	6 equipment, including repair and replacement parts, both new
119	119	7 and used, and including that manufactured on special order,
120	120	8 certified by the purchaser to be used primarily for graphic
121	121	9 arts production, and including machinery and equipment
122	122	10 purchased for lease. Equipment includes chemicals or chemicals
123	123	11 acting as catalysts but only if the chemicals or chemicals
124	124	12 acting as catalysts effect a direct and immediate change upon
125	125	13 a graphic arts product. Beginning on July 1, 2017, graphic
126	126	14 arts machinery and equipment is included in the manufacturing
127	127	15 and assembling machinery and equipment exemption under
128	128	16 paragraph (18).
129	129	17 (7) Farm chemicals.
130	130	18 (8) Legal tender, currency, medallions, or gold or silver
131	131	19 coinage issued by the State of Illinois, the government of the
132	132	20 United States of America, or the government of any foreign
133	133	21 country, and bullion.
134	134	22 (9) Personal property purchased from a teacher-sponsored
135	135	23 student organization affiliated with an elementary or
136	136	24 secondary school located in Illinois.
137	137	25 (10) A motor vehicle that is used for automobile renting,
138	138	26 as defined in the Automobile Renting Occupation and Use Tax
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149	149	1 Act.
150	150	2 (11) Farm machinery and equipment, both new and used,
151	151	3 including that manufactured on special order, certified by the
152	152	4 purchaser to be used primarily for production agriculture or
153	153	5 State or federal agricultural programs, including individual
154	154	6 replacement parts for the machinery and equipment, including
155	155	7 machinery and equipment purchased for lease, and including
156	156	8 implements of husbandry defined in Section 1-130 of the
157	157	9 Illinois Vehicle Code, farm machinery and agricultural
158	158	10 chemical and fertilizer spreaders, and nurse wagons required
159	159	11 to be registered under Section 3-809 of the Illinois Vehicle
160	160	12 Code, but excluding other motor vehicles required to be
161	161	13 registered under the Illinois Vehicle Code. Horticultural
162	162	14 polyhouses or hoop houses used for propagating, growing, or
163	163	15 overwintering plants shall be considered farm machinery and
164	164	16 equipment under this item (11). Agricultural chemical tender
165	165	17 tanks and dry boxes shall include units sold separately from a
166	166	18 motor vehicle required to be licensed and units sold mounted
167	167	19 on a motor vehicle required to be licensed if the selling price
168	168	20 of the tender is separately stated.
169	169	21 Farm machinery and equipment shall include precision
170	170	22 farming equipment that is installed or purchased to be
171	171	23 installed on farm machinery and equipment, including, but not
172	172	24 limited to, tractors, harvesters, sprayers, planters, seeders,
173	173	25 or spreaders. Precision farming equipment includes, but is not
174	174	26 limited to, soil testing sensors, computers, monitors,
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185	185	1 software, global positioning and mapping systems, and other
186	186	2 such equipment.
187	187	3 Farm machinery and equipment also includes computers,
188	188	4 sensors, software, and related equipment used primarily in the
189	189	5 computer-assisted operation of production agriculture
190	190	6 facilities, equipment, and activities such as, but not limited
191	191	7 to, the collection, monitoring, and correlation of animal and
192	192	8 crop data for the purpose of formulating animal diets and
193	193	9 agricultural chemicals.
194	194	10 Beginning on January 1, 2024, farm machinery and equipment
195	195	11 also includes electrical power generation equipment used
196	196	12 primarily for production agriculture.
197	197	13 This item (11) is exempt from the provisions of Section
198	198	14 3-90.
199	199	15 (12) Until June 30, 2013, fuel and petroleum products sold
200	200	16 to or used by an air common carrier, certified by the carrier
201	201	17 to be used for consumption, shipment, or storage in the
202	202	18 conduct of its business as an air common carrier, for a flight
203	203	19 destined for or returning from a location or locations outside
204	204	20 the United States without regard to previous or subsequent
205	205	21 domestic stopovers.
206	206	22 Beginning July 1, 2013, fuel and petroleum products sold
207	207	23 to or used by an air carrier, certified by the carrier to be
208	208	24 used for consumption, shipment, or storage in the conduct of
209	209	25 its business as an air common carrier, for a flight that (i) is
210	210	26 engaged in foreign trade or is engaged in trade between the
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221	221	1 United States and any of its possessions and (ii) transports
222	222	2 at least one individual or package for hire from the city of
223	223	3 origination to the city of final destination on the same
224	224	4 aircraft, without regard to a change in the flight number of
225	225	5 that aircraft.
226	226	6 (13) Proceeds of mandatory service charges separately
227	227	7 stated on customers' bills for the purchase and consumption of
228	228	8 food and beverages purchased at retail from a retailer, to the
229	229	9 extent that the proceeds of the service charge are in fact
230	230	10 turned over as tips or as a substitute for tips to the
231	231	11 employees who participate directly in preparing, serving,
232	232	12 hosting or cleaning up the food or beverage function with
233	233	13 respect to which the service charge is imposed.
234	234	14 (14) Until July 1, 2003, oil field exploration, drilling,
235	235	15 and production equipment, including (i) rigs and parts of
236	236	16 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
237	237	17 pipe and tubular goods, including casing and drill strings,
238	238	18 (iii) pumps and pump-jack units, (iv) storage tanks and flow
239	239	19 lines, (v) any individual replacement part for oil field
240	240	20 exploration, drilling, and production equipment, and (vi)
241	241	21 machinery and equipment purchased for lease; but excluding
242	242	22 motor vehicles required to be registered under the Illinois
243	243	23 Vehicle Code.
244	244	24 (15) Photoprocessing machinery and equipment, including
245	245	25 repair and replacement parts, both new and used, including
246	246	26 that manufactured on special order, certified by the purchaser
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257	257	1 to be used primarily for photoprocessing, and including
258	258	2 photoprocessing machinery and equipment purchased for lease.
259	259	3 (16) Until July 1, 2028, coal and aggregate exploration,
260	260	4 mining, off-highway hauling, processing, maintenance, and
261	261	5 reclamation equipment, including replacement parts and
262	262	6 equipment, and including equipment purchased for lease, but
263	263	7 excluding motor vehicles required to be registered under the
264	264	8 Illinois Vehicle Code. The changes made to this Section by
265	265	9 Public Act 97-767 apply on and after July 1, 2003, but no claim
266	266	10 for credit or refund is allowed on or after August 16, 2013
267	267	11 (the effective date of Public Act 98-456) for such taxes paid
268	268	12 during the period beginning July 1, 2003 and ending on August
269	269	13 16, 2013 (the effective date of Public Act 98-456).
270	270	14 (17) Until July 1, 2003, distillation machinery and
271	271	15 equipment, sold as a unit or kit, assembled or installed by the
272	272	16 retailer, certified by the user to be used only for the
273	273	17 production of ethyl alcohol that will be used for consumption
274	274	18 as motor fuel or as a component of motor fuel for the personal
275	275	19 use of the user, and not subject to sale or resale.
276	276	20 (18) Manufacturing and assembling machinery and equipment
277	277	21 used primarily in the process of manufacturing or assembling
278	278	22 tangible personal property for wholesale or retail sale or
279	279	23 lease, whether that sale or lease is made directly by the
280	280	24 manufacturer or by some other person, whether the materials
281	281	25 used in the process are owned by the manufacturer or some other
282	282	26 person, or whether that sale or lease is made apart from or as
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293	293	1 an incident to the seller's engaging in the service occupation
294	294	2 of producing machines, tools, dies, jigs, patterns, gauges, or
295	295	3 other similar items of no commercial value on special order
296	296	4 for a particular purchaser. The exemption provided by this
297	297	5 paragraph (18) includes production related tangible personal
298	298	6 property, as defined in Section 3-50, purchased on or after
299	299	7 July 1, 2019. The exemption provided by this paragraph (18)
300	300	8 does not include machinery and equipment used in (i) the
301	301	9 generation of electricity for wholesale or retail sale; (ii)
302	302	10 the generation or treatment of natural or artificial gas for
303	303	11 wholesale or retail sale that is delivered to customers
304	304	12 through pipes, pipelines, or mains; or (iii) the treatment of
305	305	13 water for wholesale or retail sale that is delivered to
306	306	14 customers through pipes, pipelines, or mains. The provisions
307	307	15 of Public Act 98-583 are declaratory of existing law as to the
308	308	16 meaning and scope of this exemption. Beginning on July 1,
309	309	17 2017, the exemption provided by this paragraph (18) includes,
310	310	18 but is not limited to, graphic arts machinery and equipment,
311	311	19 as defined in paragraph (6) of this Section.
312	312	20 (19) Personal property delivered to a purchaser or
313	313	21 purchaser's donee inside Illinois when the purchase order for
314	314	22 that personal property was received by a florist located
315	315	23 outside Illinois who has a florist located inside Illinois
316	316	24 deliver the personal property.
317	317	25 (20) Semen used for artificial insemination of livestock
318	318	26 for direct agricultural production.
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329	329	1 (21) Horses, or interests in horses, registered with and
330	330	2 meeting the requirements of any of the Arabian Horse Club
331	331	3 Registry of America, Appaloosa Horse Club, American Quarter
332	332	4 Horse Association, United States Trotting Association, or
333	333	5 Jockey Club, as appropriate, used for purposes of breeding or
334	334	6 racing for prizes. This item (21) is exempt from the
335	335	7 provisions of Section 3-90, and the exemption provided for
336	336	8 under this item (21) applies for all periods beginning May 30,
337	337	9 1995, but no claim for credit or refund is allowed on or after
338	338	10 January 1, 2008 for such taxes paid during the period
339	339	11 beginning May 30, 2000 and ending on January 1, 2008.
340	340	12 (22) Computers and communications equipment utilized for
341	341	13 any hospital purpose and equipment used in the diagnosis,
342	342	14 analysis, or treatment of hospital patients purchased by a
343	343	15 lessor who leases the equipment, under a lease of one year or
344	344	16 longer executed or in effect at the time the lessor would
345	345	17 otherwise be subject to the tax imposed by this Act, to a
346	346	18 hospital that has been issued an active tax exemption
347	347	19 identification number by the Department under Section 1g of
348	348	20 the Retailers' Occupation Tax Act. If the equipment is leased
349	349	21 in a manner that does not qualify for this exemption or is used
350	350	22 in any other non-exempt manner, the lessor shall be liable for
351	351	23 the tax imposed under this Act or the Service Use Tax Act, as
352	352	24 the case may be, based on the fair market value of the property
353	353	25 at the time the non-qualifying use occurs. No lessor shall
354	354	26 collect or attempt to collect an amount (however designated)
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365	365	1 that purports to reimburse that lessor for the tax imposed by
366	366	2 this Act or the Service Use Tax Act, as the case may be, if the
367	367	3 tax has not been paid by the lessor. If a lessor improperly
368	368	4 collects any such amount from the lessee, the lessee shall
369	369	5 have a legal right to claim a refund of that amount from the
370	370	6 lessor. If, however, that amount is not refunded to the lessee
371	371	7 for any reason, the lessor is liable to pay that amount to the
372	372	8 Department.
373	373	9 (23) Personal property purchased by a lessor who leases
374	374	10 the property, under a lease of one year or longer executed or
375	375	11 in effect at the time the lessor would otherwise be subject to
376	376	12 the tax imposed by this Act, to a governmental body that has
377	377	13 been issued an active sales tax exemption identification
378	378	14 number by the Department under Section 1g of the Retailers'
379	379	15 Occupation Tax Act. If the property is leased in a manner that
380	380	16 does not qualify for this exemption or used in any other
381	381	17 non-exempt manner, the lessor shall be liable for the tax
382	382	18 imposed under this Act or the Service Use Tax Act, as the case
383	383	19 may be, based on the fair market value of the property at the
384	384	20 time the non-qualifying use occurs. No lessor shall collect or
385	385	21 attempt to collect an amount (however designated) that
386	386	22 purports to reimburse that lessor for the tax imposed by this
387	387	23 Act or the Service Use Tax Act, as the case may be, if the tax
388	388	24 has not been paid by the lessor. If a lessor improperly
389	389	25 collects any such amount from the lessee, the lessee shall
390	390	26 have a legal right to claim a refund of that amount from the
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401	401	1 lessor. If, however, that amount is not refunded to the lessee
402	402	2 for any reason, the lessor is liable to pay that amount to the
403	403	3 Department.
404	404	4 (24) Beginning with taxable years ending on or after
405	405	5 December 31, 1995 and ending with taxable years ending on or
406	406	6 before December 31, 2004, personal property that is donated
407	407	7 for disaster relief to be used in a State or federally declared
408	408	8 disaster area in Illinois or bordering Illinois by a
409	409	9 manufacturer or retailer that is registered in this State to a
410	410	10 corporation, society, association, foundation, or institution
411	411	11 that has been issued a sales tax exemption identification
412	412	12 number by the Department that assists victims of the disaster
413	413	13 who reside within the declared disaster area.
414	414	14 (25) Beginning with taxable years ending on or after
415	415	15 December 31, 1995 and ending with taxable years ending on or
416	416	16 before December 31, 2004, personal property that is used in
417	417	17 the performance of infrastructure repairs in this State,
418	418	18 including, but not limited to, municipal roads and streets,
419	419	19 access roads, bridges, sidewalks, waste disposal systems,
420	420	20 water and sewer line extensions, water distribution and
421	421	21 purification facilities, storm water drainage and retention
422	422	22 facilities, and sewage treatment facilities, resulting from a
423	423	23 State or federally declared disaster in Illinois or bordering
424	424	24 Illinois when such repairs are initiated on facilities located
425	425	25 in the declared disaster area within 6 months after the
426	426	26 disaster.
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437	437	1 (26) Beginning July 1, 1999, game or game birds purchased
438	438	2 at a "game breeding and hunting preserve area" as that term is
439	439	3 used in the Wildlife Code. This paragraph is exempt from the
440	440	4 provisions of Section 3-90.
441	441	5 (27) A motor vehicle, as that term is defined in Section
442	442	6 1-146 of the Illinois Vehicle Code, that is donated to a
443	443	7 corporation, limited liability company, society, association,
444	444	8 foundation, or institution that is determined by the
445	445	9 Department to be organized and operated exclusively for
446	446	10 educational purposes. For purposes of this exemption, "a
447	447	11 corporation, limited liability company, society, association,
448	448	12 foundation, or institution organized and operated exclusively
449	449	13 for educational purposes" means all tax-supported public
450	450	14 schools, private schools that offer systematic instruction in
451	451	15 useful branches of learning by methods common to public
452	452	16 schools and that compare favorably in their scope and
453	453	17 intensity with the course of study presented in tax-supported
454	454	18 schools, and vocational or technical schools or institutes
455	455	19 organized and operated exclusively to provide a course of
456	456	20 study of not less than 6 weeks duration and designed to prepare
457	457	21 individuals to follow a trade or to pursue a manual,
458	458	22 technical, mechanical, industrial, business, or commercial
459	459	23 occupation.
460	460	24 (28) Beginning January 1, 2000, personal property,
461	461	25 including food, purchased through fundraising events for the
462	462	26 benefit of a public or private elementary or secondary school,
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473	473	1 a group of those schools, or one or more school districts if
474	474	2 the events are sponsored by an entity recognized by the school
475	475	3 district that consists primarily of volunteers and includes
476	476	4 parents and teachers of the school children. This paragraph
477	477	5 does not apply to fundraising events (i) for the benefit of
478	478	6 private home instruction or (ii) for which the fundraising
479	479	7 entity purchases the personal property sold at the events from
480	480	8 another individual or entity that sold the property for the
481	481	9 purpose of resale by the fundraising entity and that profits
482	482	10 from the sale to the fundraising entity. This paragraph is
483	483	11 exempt from the provisions of Section 3-90.
484	484	12 (29) Beginning January 1, 2000 and through December 31,
485	485	13 2001, new or used automatic vending machines that prepare and
486	486	14 serve hot food and beverages, including coffee, soup, and
487	487	15 other items, and replacement parts for these machines.
488	488	16 Beginning January 1, 2002 and through June 30, 2003, machines
489	489	17 and parts for machines used in commercial, coin-operated
490	490	18 amusement and vending business if a use or occupation tax is
491	491	19 paid on the gross receipts derived from the use of the
492	492	20 commercial, coin-operated amusement and vending machines. This
493	493	21 paragraph is exempt from the provisions of Section 3-90.
494	494	22 (30) Beginning January 1, 2001 and through June 30, 2016,
495	495	23 food for human consumption that is to be consumed off the
496	496	24 premises where it is sold (other than alcoholic beverages,
497	497	25 soft drinks, and food that has been prepared for immediate
498	498	26 consumption) and prescription and nonprescription medicines,
499	499
500	500
501	501
502	502
503	503
504	504	SB2028 - 13 - LRB104 10539 HLH 20615 b
505	505
506	506
507	507	SB2028- 14 -LRB104 10539 HLH 20615 b SB2028 - 14 - LRB104 10539 HLH 20615 b
508	508	SB2028 - 14 - LRB104 10539 HLH 20615 b
509	509	1 drugs, medical appliances, and insulin, urine testing
510	510	2 materials, syringes, and needles used by diabetics, for human
511	511	3 use, when purchased for use by a person receiving medical
512	512	4 assistance under Article V of the Illinois Public Aid Code who
513	513	5 resides in a licensed long-term care facility, as defined in
514	514	6 the Nursing Home Care Act, or in a licensed facility as defined
515	515	7 in the ID/DD Community Care Act, the MC/DD Act, or the
516	516	8 Specialized Mental Health Rehabilitation Act of 2013.
517	517	9 (31) Beginning on August 2, 2001 (the effective date of
518	518	10 Public Act 92-227), computers and communications equipment
519	519	11 utilized for any hospital purpose and equipment used in the
520	520	12 diagnosis, analysis, or treatment of hospital patients
521	521	13 purchased by a lessor who leases the equipment, under a lease
522	522	14 of one year or longer executed or in effect at the time the
523	523	15 lessor would otherwise be subject to the tax imposed by this
524	524	16 Act, to a hospital that has been issued an active tax exemption
525	525	17 identification number by the Department under Section 1g of
526	526	18 the Retailers' Occupation Tax Act. If the equipment is leased
527	527	19 in a manner that does not qualify for this exemption or is used
528	528	20 in any other nonexempt manner, the lessor shall be liable for
529	529	21 the tax imposed under this Act or the Service Use Tax Act, as
530	530	22 the case may be, based on the fair market value of the property
531	531	23 at the time the nonqualifying use occurs. No lessor shall
532	532	24 collect or attempt to collect an amount (however designated)
533	533	25 that purports to reimburse that lessor for the tax imposed by
534	534	26 this Act or the Service Use Tax Act, as the case may be, if the
535	535
536	536
537	537
538	538
539	539
540	540	SB2028 - 14 - LRB104 10539 HLH 20615 b
541	541
542	542
543	543	SB2028- 15 -LRB104 10539 HLH 20615 b SB2028 - 15 - LRB104 10539 HLH 20615 b
544	544	SB2028 - 15 - LRB104 10539 HLH 20615 b
545	545	1 tax has not been paid by the lessor. If a lessor improperly
546	546	2 collects any such amount from the lessee, the lessee shall
547	547	3 have a legal right to claim a refund of that amount from the
548	548	4 lessor. If, however, that amount is not refunded to the lessee
549	549	5 for any reason, the lessor is liable to pay that amount to the
550	550	6 Department. This paragraph is exempt from the provisions of
551	551	7 Section 3-90.
552	552	8 (32) Beginning on August 2, 2001 (the effective date of
553	553	9 Public Act 92-227), personal property purchased by a lessor
554	554	10 who leases the property, under a lease of one year or longer
555	555	11 executed or in effect at the time the lessor would otherwise be
556	556	12 subject to the tax imposed by this Act, to a governmental body
557	557	13 that has been issued an active sales tax exemption
558	558	14 identification number by the Department under Section 1g of
559	559	15 the Retailers' Occupation Tax Act. If the property is leased
560	560	16 in a manner that does not qualify for this exemption or used in
561	561	17 any other nonexempt manner, the lessor shall be liable for the
562	562	18 tax imposed under this Act or the Service Use Tax Act, as the
563	563	19 case may be, based on the fair market value of the property at
564	564	20 the time the nonqualifying use occurs. No lessor shall collect
565	565	21 or attempt to collect an amount (however designated) that
566	566	22 purports to reimburse that lessor for the tax imposed by this
567	567	23 Act or the Service Use Tax Act, as the case may be, if the tax
568	568	24 has not been paid by the lessor. If a lessor improperly
569	569	25 collects any such amount from the lessee, the lessee shall
570	570	26 have a legal right to claim a refund of that amount from the
571	571
572	572
573	573
574	574
575	575
576	576	SB2028 - 15 - LRB104 10539 HLH 20615 b
577	577
578	578
579	579	SB2028- 16 -LRB104 10539 HLH 20615 b SB2028 - 16 - LRB104 10539 HLH 20615 b
580	580	SB2028 - 16 - LRB104 10539 HLH 20615 b
581	581	1 lessor. If, however, that amount is not refunded to the lessee
582	582	2 for any reason, the lessor is liable to pay that amount to the
583	583	3 Department. This paragraph is exempt from the provisions of
584	584	4 Section 3-90.
585	585	5 (33) On and after July 1, 2003 and through June 30, 2004,
586	586	6 the use in this State of motor vehicles of the second division
587	587	7 with a gross vehicle weight in excess of 8,000 pounds and that
588	588	8 are subject to the commercial distribution fee imposed under
589	589	9 Section 3-815.1 of the Illinois Vehicle Code. Beginning on
590	590	10 July 1, 2004 and through June 30, 2005, the use in this State
591	591	11 of motor vehicles of the second division: (i) with a gross
592	592	12 vehicle weight rating in excess of 8,000 pounds; (ii) that are
593	593	13 subject to the commercial distribution fee imposed under
594	594	14 Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
595	595	15 are primarily used for commercial purposes. Through June 30,
596	596	16 2005, this exemption applies to repair and replacement parts
597	597	17 added after the initial purchase of such a motor vehicle if
598	598	18 that motor vehicle is used in a manner that would qualify for
599	599	19 the rolling stock exemption otherwise provided for in this
600	600	20 Act. For purposes of this paragraph, the term "used for
601	601	21 commercial purposes" means the transportation of persons or
602	602	22 property in furtherance of any commercial or industrial
603	603	23 enterprise, whether for-hire or not.
604	604	24 (34) Beginning January 1, 2008, tangible personal property
605	605	25 used in the construction or maintenance of a community water
606	606	26 supply, as defined under Section 3.145 of the Environmental
607	607
608	608
609	609
610	610
611	611
612	612	SB2028 - 16 - LRB104 10539 HLH 20615 b
613	613
614	614
615	615	SB2028- 17 -LRB104 10539 HLH 20615 b SB2028 - 17 - LRB104 10539 HLH 20615 b
616	616	SB2028 - 17 - LRB104 10539 HLH 20615 b
617	617	1 Protection Act, that is operated by a not-for-profit
618	618	2 corporation that holds a valid water supply permit issued
619	619	3 under Title IV of the Environmental Protection Act. This
620	620	4 paragraph is exempt from the provisions of Section 3-90.
621	621	5 (35) Beginning January 1, 2010 and continuing through
622	622	6 December 31, 2029, materials, parts, equipment, components,
623	623	7 and furnishings incorporated into or upon an aircraft as part
624	624	8 of the modification, refurbishment, completion, replacement,
625	625	9 repair, or maintenance of the aircraft. This exemption
626	626	10 includes consumable supplies used in the modification,
627	627	11 refurbishment, completion, replacement, repair, and
628	628	12 maintenance of aircraft. However, until January 1, 2024, this
629	629	13 exemption excludes any materials, parts, equipment,
630	630	14 components, and consumable supplies used in the modification,
631	631	15 replacement, repair, and maintenance of aircraft engines or
632	632	16 power plants, whether such engines or power plants are
633	633	17 installed or uninstalled upon any such aircraft. "Consumable
634	634	18 supplies" include, but are not limited to, adhesive, tape,
635	635	19 sandpaper, general purpose lubricants, cleaning solution,
636	636	20 latex gloves, and protective films.
637	637	21 Beginning January 1, 2010 and continuing through December
638	638	22 31, 2023, this exemption applies only to the use of qualifying
639	639	23 tangible personal property by persons who modify, refurbish,
640	640	24 complete, repair, replace, or maintain aircraft and who (i)
641	641	25 hold an Air Agency Certificate and are empowered to operate an
642	642	26 approved repair station by the Federal Aviation
643	643
644	644
645	645
646	646
647	647
648	648	SB2028 - 17 - LRB104 10539 HLH 20615 b
649	649
650	650
651	651	SB2028- 18 -LRB104 10539 HLH 20615 b SB2028 - 18 - LRB104 10539 HLH 20615 b
652	652	SB2028 - 18 - LRB104 10539 HLH 20615 b
653	653	1 Administration, (ii) have a Class IV Rating, and (iii) conduct
654	654	2 operations in accordance with Part 145 of the Federal Aviation
655	655	3 Regulations. From January 1, 2024 through December 31, 2029,
656	656	4 this exemption applies only to the use of qualifying tangible
657	657	5 personal property by: (A) persons who modify, refurbish,
658	658	6 complete, repair, replace, or maintain aircraft and who (i)
659	659	7 hold an Air Agency Certificate and are empowered to operate an
660	660	8 approved repair station by the Federal Aviation
661	661	9 Administration, (ii) have a Class IV Rating, and (iii) conduct
662	662	10 operations in accordance with Part 145 of the Federal Aviation
663	663	11 Regulations; and (B) persons who engage in the modification,
664	664	12 replacement, repair, and maintenance of aircraft engines or
665	665	13 power plants without regard to whether or not those persons
666	666	14 meet the qualifications of item (A).
667	667	15 The exemption does not include aircraft operated by a
668	668	16 commercial air carrier providing scheduled passenger air
669	669	17 service pursuant to authority issued under Part 121 or Part
670	670	18 129 of the Federal Aviation Regulations. The changes made to
671	671	19 this paragraph (35) by Public Act 98-534 are declarative of
672	672	20 existing law. It is the intent of the General Assembly that the
673	673	21 exemption under this paragraph (35) applies continuously from
674	674	22 January 1, 2010 through December 31, 2024; however, no claim
675	675	23 for credit or refund is allowed for taxes paid as a result of
676	676	24 the disallowance of this exemption on or after January 1, 2015
677	677	25 and prior to February 5, 2020 (the effective date of Public Act
678	678	26 101-629).
679	679
680	680
681	681
682	682
683	683
684	684	SB2028 - 18 - LRB104 10539 HLH 20615 b
685	685
686	686
687	687	SB2028- 19 -LRB104 10539 HLH 20615 b SB2028 - 19 - LRB104 10539 HLH 20615 b
688	688	SB2028 - 19 - LRB104 10539 HLH 20615 b
689	689	1 (36) Tangible personal property purchased by a
690	690	2 public-facilities corporation, as described in Section
691	691	3 11-65-10 of the Illinois Municipal Code, for purposes of
692	692	4 constructing or furnishing a municipal convention hall, but
693	693	5 only if the legal title to the municipal convention hall is
694	694	6 transferred to the municipality without any further
695	695	7 consideration by or on behalf of the municipality at the time
696	696	8 of the completion of the municipal convention hall or upon the
697	697	9 retirement or redemption of any bonds or other debt
698	698	10 instruments issued by the public-facilities corporation in
699	699	11 connection with the development of the municipal convention
700	700	12 hall. This exemption includes existing public-facilities
701	701	13 corporations as provided in Section 11-65-25 of the Illinois
702	702	14 Municipal Code. This paragraph is exempt from the provisions
703	703	15 of Section 3-90.
704	704	16 (37) Beginning January 1, 2017 and through December 31,
705	705	17 2026, menstrual pads, tampons, and menstrual cups.
706	706	18 (38) Merchandise that is subject to the Rental Purchase
707	707	19 Agreement Occupation and Use Tax. The purchaser must certify
708	708	20 that the item is purchased to be rented subject to a
709	709	21 rental-purchase agreement, as defined in the Rental-Purchase
710	710	22 Agreement Act, and provide proof of registration under the
711	711	23 Rental Purchase Agreement Occupation and Use Tax Act. This
712	712	24 paragraph is exempt from the provisions of Section 3-90.
713	713	25 (39) Tangible personal property purchased by a purchaser
714	714	26 who is exempt from the tax imposed by this Act by operation of
715	715
716	716
717	717
718	718
719	719
720	720	SB2028 - 19 - LRB104 10539 HLH 20615 b
721	721
722	722
723	723	SB2028- 20 -LRB104 10539 HLH 20615 b SB2028 - 20 - LRB104 10539 HLH 20615 b
724	724	SB2028 - 20 - LRB104 10539 HLH 20615 b
725	725	1 federal law. This paragraph is exempt from the provisions of
726	726	2 Section 3-90.
727	727	3 (40) Qualified tangible personal property used in the
728	728	4 construction or operation of a data center that has been
729	729	5 granted a certificate of exemption by the Department of
730	730	6 Commerce and Economic Opportunity, whether that tangible
731	731	7 personal property is purchased by the owner, operator, or
732	732	8 tenant of the data center or by a contractor or subcontractor
733	733	9 of the owner, operator, or tenant. Data centers that would
734	734	10 have qualified for a certificate of exemption prior to January
735	735	11 1, 2020 had Public Act 101-31 been in effect may apply for and
736	736	12 obtain an exemption for subsequent purchases of computer
737	737	13 equipment or enabling software purchased or leased to upgrade,
738	738	14 supplement, or replace computer equipment or enabling software
739	739	15 purchased or leased in the original investment that would have
740	740	16 qualified.
741	741	17 The Department of Commerce and Economic Opportunity shall
742	742	18 grant a certificate of exemption under this item (40) to
743	743	19 qualified data centers as defined by Section 605-1025 of the
744	744	20 Department of Commerce and Economic Opportunity Law of the
745	745	21 Civil Administrative Code of Illinois.
746	746	22 For the purposes of this item (40):
747	747	23 "Data center" means a building or a series of
748	748	24 buildings rehabilitated or constructed to house working
749	749	25 servers in one physical location or multiple sites within
750	750	26 the State of Illinois.
751	751
752	752
753	753
754	754
755	755
756	756	SB2028 - 20 - LRB104 10539 HLH 20615 b
757	757
758	758
759	759	SB2028- 21 -LRB104 10539 HLH 20615 b SB2028 - 21 - LRB104 10539 HLH 20615 b
760	760	SB2028 - 21 - LRB104 10539 HLH 20615 b
761	761	1 "Qualified tangible personal property" means:
762	762	2 electrical systems and equipment; climate control and
763	763	3 chilling equipment and systems; mechanical systems and
764	764	4 equipment; monitoring and secure systems; emergency
765	765	5 generators; hardware; computers; servers; data storage
766	766	6 devices; network connectivity equipment; racks; cabinets;
767	767	7 telecommunications cabling infrastructure; raised floor
768	768	8 systems; peripheral components or systems; software;
769	769	9 mechanical, electrical, or plumbing systems; battery
770	770	10 systems; cooling systems and towers; temperature control
771	771	11 systems; other cabling; and other data center
772	772	12 infrastructure equipment and systems necessary to operate
773	773	13 qualified tangible personal property, including fixtures;
774	774	14 and component parts of any of the foregoing, including
775	775	15 installation, maintenance, repair, refurbishment, and
776	776	16 replacement of qualified tangible personal property to
777	777	17 generate, transform, transmit, distribute, or manage
778	778	18 electricity necessary to operate qualified tangible
779	779	19 personal property; and all other tangible personal
780	780	20 property that is essential to the operations of a computer
781	781	21 data center. The term "qualified tangible personal
782	782	22 property" also includes building materials physically
783	783	23 incorporated into the qualifying data center. To document
784	784	24 the exemption allowed under this Section, the retailer
785	785	25 must obtain from the purchaser a copy of the certificate
786	786	26 of eligibility issued by the Department of Commerce and
787	787
788	788
789	789
790	790
791	791
792	792	SB2028 - 21 - LRB104 10539 HLH 20615 b
793	793
794	794
795	795	SB2028- 22 -LRB104 10539 HLH 20615 b SB2028 - 22 - LRB104 10539 HLH 20615 b
796	796	SB2028 - 22 - LRB104 10539 HLH 20615 b
797	797	1 Economic Opportunity.
798	798	2 This item (40) is exempt from the provisions of Section
799	799	3 3-90.
800	800	4 (41) Beginning July 1, 2022, breast pumps, breast pump
801	801	5 collection and storage supplies, and breast pump kits. This
802	802	6 item (41) is exempt from the provisions of Section 3-90. As
803	803	7 used in this item (41):
804	804	8 "Breast pump" means an electrically controlled or
805	805	9 manually controlled pump device designed or marketed to be
806	806	10 used to express milk from a human breast during lactation,
807	807	11 including the pump device and any battery, AC adapter, or
808	808	12 other power supply unit that is used to power the pump
809	809	13 device and is packaged and sold with the pump device at the
810	810	14 time of sale.
811	811	15 "Breast pump collection and storage supplies" means
812	812	16 items of tangible personal property designed or marketed
813	813	17 to be used in conjunction with a breast pump to collect
814	814	18 milk expressed from a human breast and to store collected
815	815	19 milk until it is ready for consumption.
816	816	20 "Breast pump collection and storage supplies"
817	817	21 includes, but is not limited to: breast shields and breast
818	818	22 shield connectors; breast pump tubes and tubing adapters;
819	819	23 breast pump valves and membranes; backflow protectors and
820	820	24 backflow protector adaptors; bottles and bottle caps
821	821	25 specific to the operation of the breast pump; and breast
822	822	26 milk storage bags.
823	823
824	824
825	825
826	826
827	827
828	828	SB2028 - 22 - LRB104 10539 HLH 20615 b
829	829
830	830
831	831	SB2028- 23 -LRB104 10539 HLH 20615 b SB2028 - 23 - LRB104 10539 HLH 20615 b
832	832	SB2028 - 23 - LRB104 10539 HLH 20615 b
833	833	1 "Breast pump collection and storage supplies" does not
834	834	2 include: (1) bottles and bottle caps not specific to the
835	835	3 operation of the breast pump; (2) breast pump travel bags
836	836	4 and other similar carrying accessories, including ice
837	837	5 packs, labels, and other similar products; (3) breast pump
838	838	6 cleaning supplies; (4) nursing bras, bra pads, breast
839	839	7 shells, and other similar products; and (5) creams,
840	840	8 ointments, and other similar products that relieve
841	841	9 breastfeeding-related symptoms or conditions of the
842	842	10 breasts or nipples, unless sold as part of a breast pump
843	843	11 kit that is pre-packaged by the breast pump manufacturer
844	844	12 or distributor.
845	845	13 "Breast pump kit" means a kit that: (1) contains no
846	846	14 more than a breast pump, breast pump collection and
847	847	15 storage supplies, a rechargeable battery for operating the
848	848	16 breast pump, a breastmilk cooler, bottle stands, ice
849	849	17 packs, and a breast pump carrying case; and (2) is
850	850	18 pre-packaged as a breast pump kit by the breast pump
851	851	19 manufacturer or distributor.
852	852	20 (42) Tangible personal property sold by or on behalf of
853	853	21 the State Treasurer pursuant to the Revised Uniform Unclaimed
854	854	22 Property Act. This item (42) is exempt from the provisions of
855	855	23 Section 3-90.
856	856	24 (43) Beginning on January 1, 2024, tangible personal
857	857	25 property purchased by an active duty member of the armed
858	858	26 forces of the United States who presents valid military
859	859
860	860
861	861
862	862
863	863
864	864	SB2028 - 23 - LRB104 10539 HLH 20615 b
865	865
866	866
867	867	SB2028- 24 -LRB104 10539 HLH 20615 b SB2028 - 24 - LRB104 10539 HLH 20615 b
868	868	SB2028 - 24 - LRB104 10539 HLH 20615 b
869	869	1 identification and purchases the property using a form of
870	870	2 payment where the federal government is the payor. The member
871	871	3 of the armed forces must complete, at the point of sale, a form
872	872	4 prescribed by the Department of Revenue documenting that the
873	873	5 transaction is eligible for the exemption under this
874	874	6 paragraph. Retailers must keep the form as documentation of
875	875	7 the exemption in their records for a period of not less than 6
876	876	8 years. "Armed forces of the United States" means the United
877	877	9 States Army, Navy, Air Force, Space Force, Marine Corps, or
878	878	10 Coast Guard. This paragraph is exempt from the provisions of
879	879	11 Section 3-90.
880	880	12 (44) Beginning July 1, 2024, home-delivered meals provided
881	881	13 to Medicare or Medicaid recipients when payment is made by an
882	882	14 intermediary, such as a Medicare Administrative Contractor, a
883	883	15 Managed Care Organization, or a Medicare Advantage
884	884	16 Organization, pursuant to a government contract. This item
885	885	17 (44) is exempt from the provisions of Section 3-90.
886	886	18 (45) (44) Beginning on January 1, 2026, as further defined
887	887	19 in Section 3-10, food for human consumption that is to be
888	888	20 consumed off the premises where it is sold (other than
889	889	21 alcoholic beverages, food consisting of or infused with adult
890	890	22 use cannabis, soft drinks, candy, and food that has been
891	891	23 prepared for immediate consumption). This item (45) (44) is
892	892	24 exempt from the provisions of Section 3-90.
893	893	25 (46) (44) Use by the lessee of the following leased
894	894	26 tangible personal property:
895	895
896	896
897	897
898	898
899	899
900	900	SB2028 - 24 - LRB104 10539 HLH 20615 b
901	901
902	902
903	903	SB2028- 25 -LRB104 10539 HLH 20615 b SB2028 - 25 - LRB104 10539 HLH 20615 b
904	904	SB2028 - 25 - LRB104 10539 HLH 20615 b
905	905	1 (1) software transferred subject to a license that
906	906	2 meets the following requirements:
907	907	3 (A) it is evidenced by a written agreement signed
908	908	4 by the licensor and the customer;
909	909	5 (i) an electronic agreement in which the
910	910	6 customer accepts the license by means of an
911	911	7 electronic signature that is verifiable and can be
912	912	8 authenticated and is attached to or made part of
913	913	9 the license will comply with this requirement;
914	914	10 (ii) a license agreement in which the customer
915	915	11 electronically accepts the terms by clicking "I
916	916	12 agree" does not comply with this requirement;
917	917	13 (B) it restricts the customer's duplication and
918	918	14 use of the software;
919	919	15 (C) it prohibits the customer from licensing,
920	920	16 sublicensing, or transferring the software to a third
921	921	17 party (except to a related party) without the
922	922	18 permission and continued control of the licensor;
923	923	19 (D) the licensor has a policy of providing another
924	924	20 copy at minimal or no charge if the customer loses or
925	925	21 damages the software, or of permitting the licensee to
926	926	22 make and keep an archival copy, and such policy is
927	927	23 either stated in the license agreement, supported by
928	928	24 the licensor's books and records, or supported by a
929	929	25 notarized statement made under penalties of perjury by
930	930	26 the licensor; and
931	931
932	932
933	933
934	934
935	935
936	936	SB2028 - 25 - LRB104 10539 HLH 20615 b
937	937
938	938
939	939	SB2028- 26 -LRB104 10539 HLH 20615 b SB2028 - 26 - LRB104 10539 HLH 20615 b
940	940	SB2028 - 26 - LRB104 10539 HLH 20615 b
941	941	1 (E) the customer must destroy or return all copies
942	942	2 of the software to the licensor at the end of the
943	943	3 license period; this provision is deemed to be met, in
944	944	4 the case of a perpetual license, without being set
945	945	5 forth in the license agreement; and
946	946	6 (2) property that is subject to a tax on lease
947	947	7 receipts imposed by a home rule unit of local government
948	948	8 if the ordinance imposing that tax was adopted prior to
949	949	9 January 1, 2023.
950	950	10 (47) Equipment and materials placed in service on or after
951	951	11 January 1, 2026 that are incorporated into or used in the
952	952	12 business of providing broadband services, including all
953	953	13 equipment and materials machinery, software, or other tangible
954	954	14 personal property that is used in whole or in part in
955	955	15 producing, broadcasting, distributing, sending, receiving,
956	956	16 storing, transmitting, retransmitting, amplifying, switching,
957	957	17 or routing broadband services, including the monitoring,
958	958	18 testing, maintaining, enabling, or facilitating of such
959	959	19 equipment, machinery, software, or other infrastructure. That
960	960	20 property includes, but is not limited to, wires, cables
961	961	21 including fiber optic cables, antennas, poles, switches,
962	962	22 routers, amplifiers, rectifiers, repeaters, receivers,
963	963	23 multiplexers, duplexers, transmitters, power equipment, backup
964	964	24 power equipment, diagnostic equipment, storage devices,
965	965	25 modems, and other general central office equipment, such as
966	966	26 channel cards, frames, and cabinets. As used in this item
967	967
968	968
969	969
970	970
971	971
972	972	SB2028 - 26 - LRB104 10539 HLH 20615 b
973	973
974	974
975	975	SB2028- 27 -LRB104 10539 HLH 20615 b SB2028 - 27 - LRB104 10539 HLH 20615 b
976	976	SB2028 - 27 - LRB104 10539 HLH 20615 b
977	977	1 (47), "broadband" and "broadband service" have the meanings
978	978	2 given to those terms under Section 10 of the Broadband
979	979	3 Advisory Council Act. This item (47) is exempt from the
980	980	4 provisions of Section 3-90.
981	981	5 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
982	982	6 Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
983	983	7 eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
984	984	8 Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
985	985	9 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
986	986	10 103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
987	987	11 7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; revised
988	988	12 11-26-24.)
989	989	13 Section 10. The Service Use Tax Act is amended by changing
990	990	14 Section 3-5 as follows:
991	991	15 (35 ILCS 110/3-5)
992	992	16 Sec. 3-5. Exemptions. Use of the following tangible
993	993	17 personal property is exempt from the tax imposed by this Act:
994	994	18 (1) Personal property purchased from a corporation,
995	995	19 society, association, foundation, institution, or
996	996	20 organization, other than a limited liability company, that is
997	997	21 organized and operated as a not-for-profit service enterprise
998	998	22 for the benefit of persons 65 years of age or older if the
999	999	23 personal property was not purchased by the enterprise for the
1000	1000	24 purpose of resale by the enterprise.
1001	1001
1002	1002
1003	1003
1004	1004
1005	1005
1006	1006	SB2028 - 27 - LRB104 10539 HLH 20615 b
1007	1007
1008	1008
1009	1009	SB2028- 28 -LRB104 10539 HLH 20615 b SB2028 - 28 - LRB104 10539 HLH 20615 b
1010	1010	SB2028 - 28 - LRB104 10539 HLH 20615 b
1011	1011	1 (2) Personal property purchased by a non-profit Illinois
1012	1012	2 county fair association for use in conducting, operating, or
1013	1013	3 promoting the county fair.
1014	1014	4 (3) Personal property purchased by a not-for-profit arts
1015	1015	5 or cultural organization that establishes, by proof required
1016	1016	6 by the Department by rule, that it has received an exemption
1017	1017	7 under Section 501(c)(3) of the Internal Revenue Code and that
1018	1018	8 is organized and operated primarily for the presentation or
1019	1019	9 support of arts or cultural programming, activities, or
1020	1020	10 services. These organizations include, but are not limited to,
1021	1021	11 music and dramatic arts organizations such as symphony
1022	1022	12 orchestras and theatrical groups, arts and cultural service
1023	1023	13 organizations, local arts councils, visual arts organizations,
1024	1024	14 and media arts organizations. On and after July 1, 2001 (the
1025	1025	15 effective date of Public Act 92-35), however, an entity
1026	1026	16 otherwise eligible for this exemption shall not make tax-free
1027	1027	17 purchases unless it has an active identification number issued
1028	1028	18 by the Department.
1029	1029	19 (4) Legal tender, currency, medallions, or gold or silver
1030	1030	20 coinage issued by the State of Illinois, the government of the
1031	1031	21 United States of America, or the government of any foreign
1032	1032	22 country, and bullion.
1033	1033	23 (5) Until July 1, 2003 and beginning again on September 1,
1034	1034	24 2004 through August 30, 2014, graphic arts machinery and
1035	1035	25 equipment, including repair and replacement parts, both new
1036	1036	26 and used, and including that manufactured on special order or
1037	1037
1038	1038
1039	1039
1040	1040
1041	1041
1042	1042	SB2028 - 28 - LRB104 10539 HLH 20615 b
1043	1043
1044	1044
1045	1045	SB2028- 29 -LRB104 10539 HLH 20615 b SB2028 - 29 - LRB104 10539 HLH 20615 b
1046	1046	SB2028 - 29 - LRB104 10539 HLH 20615 b
1047	1047	1 purchased for lease, certified by the purchaser to be used
1048	1048	2 primarily for graphic arts production. Equipment includes
1049	1049	3 chemicals or chemicals acting as catalysts but only if the
1050	1050	4 chemicals or chemicals acting as catalysts effect a direct and
1051	1051	5 immediate change upon a graphic arts product. Beginning on
1052	1052	6 July 1, 2017, graphic arts machinery and equipment is included
1053	1053	7 in the manufacturing and assembling machinery and equipment
1054	1054	8 exemption under Section 2 of this Act.
1055	1055	9 (6) Personal property purchased from a teacher-sponsored
1056	1056	10 student organization affiliated with an elementary or
1057	1057	11 secondary school located in Illinois.
1058	1058	12 (7) Farm machinery and equipment, both new and used,
1059	1059	13 including that manufactured on special order, certified by the
1060	1060	14 purchaser to be used primarily for production agriculture or
1061	1061	15 State or federal agricultural programs, including individual
1062	1062	16 replacement parts for the machinery and equipment, including
1063	1063	17 machinery and equipment purchased for lease, and including
1064	1064	18 implements of husbandry defined in Section 1-130 of the
1065	1065	19 Illinois Vehicle Code, farm machinery and agricultural
1066	1066	20 chemical and fertilizer spreaders, and nurse wagons required
1067	1067	21 to be registered under Section 3-809 of the Illinois Vehicle
1068	1068	22 Code, but excluding other motor vehicles required to be
1069	1069	23 registered under the Illinois Vehicle Code. Horticultural
1070	1070	24 polyhouses or hoop houses used for propagating, growing, or
1071	1071	25 overwintering plants shall be considered farm machinery and
1072	1072	26 equipment under this item (7). Agricultural chemical tender
1073	1073
1074	1074
1075	1075
1076	1076
1077	1077
1078	1078	SB2028 - 29 - LRB104 10539 HLH 20615 b
1079	1079
1080	1080
1081	1081	SB2028- 30 -LRB104 10539 HLH 20615 b SB2028 - 30 - LRB104 10539 HLH 20615 b
1082	1082	SB2028 - 30 - LRB104 10539 HLH 20615 b
1083	1083	1 tanks and dry boxes shall include units sold separately from a
1084	1084	2 motor vehicle required to be licensed and units sold mounted
1085	1085	3 on a motor vehicle required to be licensed if the selling price
1086	1086	4 of the tender is separately stated.
1087	1087	5 Farm machinery and equipment shall include precision
1088	1088	6 farming equipment that is installed or purchased to be
1089	1089	7 installed on farm machinery and equipment, including, but not
1090	1090	8 limited to, tractors, harvesters, sprayers, planters, seeders,
1091	1091	9 or spreaders. Precision farming equipment includes, but is not
1092	1092	10 limited to, soil testing sensors, computers, monitors,
1093	1093	11 software, global positioning and mapping systems, and other
1094	1094	12 such equipment.
1095	1095	13 Farm machinery and equipment also includes computers,
1096	1096	14 sensors, software, and related equipment used primarily in the
1097	1097	15 computer-assisted operation of production agriculture
1098	1098	16 facilities, equipment, and activities such as, but not limited
1099	1099	17 to, the collection, monitoring, and correlation of animal and
1100	1100	18 crop data for the purpose of formulating animal diets and
1101	1101	19 agricultural chemicals.
1102	1102	20 Beginning on January 1, 2024, farm machinery and equipment
1103	1103	21 also includes electrical power generation equipment used
1104	1104	22 primarily for production agriculture.
1105	1105	23 This item (7) is exempt from the provisions of Section
1106	1106	24 3-75.
1107	1107	25 (8) Until June 30, 2013, fuel and petroleum products sold
1108	1108	26 to or used by an air common carrier, certified by the carrier
1109	1109
1110	1110
1111	1111
1112	1112
1113	1113
1114	1114	SB2028 - 30 - LRB104 10539 HLH 20615 b
1115	1115
1116	1116
1117	1117	SB2028- 31 -LRB104 10539 HLH 20615 b SB2028 - 31 - LRB104 10539 HLH 20615 b
1118	1118	SB2028 - 31 - LRB104 10539 HLH 20615 b
1119	1119	1 to be used for consumption, shipment, or storage in the
1120	1120	2 conduct of its business as an air common carrier, for a flight
1121	1121	3 destined for or returning from a location or locations outside
1122	1122	4 the United States without regard to previous or subsequent
1123	1123	5 domestic stopovers.
1124	1124	6 Beginning July 1, 2013, fuel and petroleum products sold
1125	1125	7 to or used by an air carrier, certified by the carrier to be
1126	1126	8 used for consumption, shipment, or storage in the conduct of
1127	1127	9 its business as an air common carrier, for a flight that (i) is
1128	1128	10 engaged in foreign trade or is engaged in trade between the
1129	1129	11 United States and any of its possessions and (ii) transports
1130	1130	12 at least one individual or package for hire from the city of
1131	1131	13 origination to the city of final destination on the same
1132	1132	14 aircraft, without regard to a change in the flight number of
1133	1133	15 that aircraft.
1134	1134	16 (9) Proceeds of mandatory service charges separately
1135	1135	17 stated on customers' bills for the purchase and consumption of
1136	1136	18 food and beverages acquired as an incident to the purchase of a
1137	1137	19 service from a serviceman, to the extent that the proceeds of
1138	1138	20 the service charge are in fact turned over as tips or as a
1139	1139	21 substitute for tips to the employees who participate directly
1140	1140	22 in preparing, serving, hosting or cleaning up the food or
1141	1141	23 beverage function with respect to which the service charge is
1142	1142	24 imposed.
1143	1143	25 (10) Until July 1, 2003, oil field exploration, drilling,
1144	1144	26 and production equipment, including (i) rigs and parts of
1145	1145
1146	1146
1147	1147
1148	1148
1149	1149
1150	1150	SB2028 - 31 - LRB104 10539 HLH 20615 b
1151	1151
1152	1152
1153	1153	SB2028- 32 -LRB104 10539 HLH 20615 b SB2028 - 32 - LRB104 10539 HLH 20615 b
1154	1154	SB2028 - 32 - LRB104 10539 HLH 20615 b
1155	1155	1 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1156	1156	2 pipe and tubular goods, including casing and drill strings,
1157	1157	3 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1158	1158	4 lines, (v) any individual replacement part for oil field
1159	1159	5 exploration, drilling, and production equipment, and (vi)
1160	1160	6 machinery and equipment purchased for lease; but excluding
1161	1161	7 motor vehicles required to be registered under the Illinois
1162	1162	8 Vehicle Code.
1163	1163	9 (11) Proceeds from the sale of photoprocessing machinery
1164	1164	10 and equipment, including repair and replacement parts, both
1165	1165	11 new and used, including that manufactured on special order,
1166	1166	12 certified by the purchaser to be used primarily for
1167	1167	13 photoprocessing, and including photoprocessing machinery and
1168	1168	14 equipment purchased for lease.
1169	1169	15 (12) Until July 1, 2028, coal and aggregate exploration,
1170	1170	16 mining, off-highway hauling, processing, maintenance, and
1171	1171	17 reclamation equipment, including replacement parts and
1172	1172	18 equipment, and including equipment purchased for lease, but
1173	1173	19 excluding motor vehicles required to be registered under the
1174	1174	20 Illinois Vehicle Code. The changes made to this Section by
1175	1175	21 Public Act 97-767 apply on and after July 1, 2003, but no claim
1176	1176	22 for credit or refund is allowed on or after August 16, 2013
1177	1177	23 (the effective date of Public Act 98-456) for such taxes paid
1178	1178	24 during the period beginning July 1, 2003 and ending on August
1179	1179	25 16, 2013 (the effective date of Public Act 98-456).
1180	1180	26 (13) Semen used for artificial insemination of livestock
1181	1181
1182	1182
1183	1183
1184	1184
1185	1185
1186	1186	SB2028 - 32 - LRB104 10539 HLH 20615 b
1187	1187
1188	1188
1189	1189	SB2028- 33 -LRB104 10539 HLH 20615 b SB2028 - 33 - LRB104 10539 HLH 20615 b
1190	1190	SB2028 - 33 - LRB104 10539 HLH 20615 b
1191	1191	1 for direct agricultural production.
1192	1192	2 (14) Horses, or interests in horses, registered with and
1193	1193	3 meeting the requirements of any of the Arabian Horse Club
1194	1194	4 Registry of America, Appaloosa Horse Club, American Quarter
1195	1195	5 Horse Association, United States Trotting Association, or
1196	1196	6 Jockey Club, as appropriate, used for purposes of breeding or
1197	1197	7 racing for prizes. This item (14) is exempt from the
1198	1198	8 provisions of Section 3-75, and the exemption provided for
1199	1199	9 under this item (14) applies for all periods beginning May 30,
1200	1200	10 1995, but no claim for credit or refund is allowed on or after
1201	1201	11 January 1, 2008 (the effective date of Public Act 95-88) for
1202	1202	12 such taxes paid during the period beginning May 30, 2000 and
1203	1203	13 ending on January 1, 2008 (the effective date of Public Act
1204	1204	14 95-88).
1205	1205	15 (15) Computers and communications equipment utilized for
1206	1206	16 any hospital purpose and equipment used in the diagnosis,
1207	1207	17 analysis, or treatment of hospital patients purchased by a
1208	1208	18 lessor who leases the equipment, under a lease of one year or
1209	1209	19 longer executed or in effect at the time the lessor would
1210	1210	20 otherwise be subject to the tax imposed by this Act, to a
1211	1211	21 hospital that has been issued an active tax exemption
1212	1212	22 identification number by the Department under Section 1g of
1213	1213	23 the Retailers' Occupation Tax Act. If the equipment is leased
1214	1214	24 in a manner that does not qualify for this exemption or is used
1215	1215	25 in any other non-exempt manner, the lessor shall be liable for
1216	1216	26 the tax imposed under this Act or the Use Tax Act, as the case
1217	1217
1218	1218
1219	1219
1220	1220
1221	1221
1222	1222	SB2028 - 33 - LRB104 10539 HLH 20615 b
1223	1223
1224	1224
1225	1225	SB2028- 34 -LRB104 10539 HLH 20615 b SB2028 - 34 - LRB104 10539 HLH 20615 b
1226	1226	SB2028 - 34 - LRB104 10539 HLH 20615 b
1227	1227	1 may be, based on the fair market value of the property at the
1228	1228	2 time the non-qualifying use occurs. No lessor shall collect or
1229	1229	3 attempt to collect an amount (however designated) that
1230	1230	4 purports to reimburse that lessor for the tax imposed by this
1231	1231	5 Act or the Use Tax Act, as the case may be, if the tax has not
1232	1232	6 been paid by the lessor. If a lessor improperly collects any
1233	1233	7 such amount from the lessee, the lessee shall have a legal
1234	1234	8 right to claim a refund of that amount from the lessor. If,
1235	1235	9 however, that amount is not refunded to the lessee for any
1236	1236	10 reason, the lessor is liable to pay that amount to the
1237	1237	11 Department.
1238	1238	12 (16) Personal property purchased by a lessor who leases
1239	1239	13 the property, under a lease of one year or longer executed or
1240	1240	14 in effect at the time the lessor would otherwise be subject to
1241	1241	15 the tax imposed by this Act, to a governmental body that has
1242	1242	16 been issued an active tax exemption identification number by
1243	1243	17 the Department under Section 1g of the Retailers' Occupation
1244	1244	18 Tax Act. If the property is leased in a manner that does not
1245	1245	19 qualify for this exemption or is used in any other non-exempt
1246	1246	20 manner, the lessor shall be liable for the tax imposed under
1247	1247	21 this Act or the Use Tax Act, as the case may be, based on the
1248	1248	22 fair market value of the property at the time the
1249	1249	23 non-qualifying use occurs. No lessor shall collect or attempt
1250	1250	24 to collect an amount (however designated) that purports to
1251	1251	25 reimburse that lessor for the tax imposed by this Act or the
1252	1252	26 Use Tax Act, as the case may be, if the tax has not been paid
1253	1253
1254	1254
1255	1255
1256	1256
1257	1257
1258	1258	SB2028 - 34 - LRB104 10539 HLH 20615 b
1259	1259
1260	1260
1261	1261	SB2028- 35 -LRB104 10539 HLH 20615 b SB2028 - 35 - LRB104 10539 HLH 20615 b
1262	1262	SB2028 - 35 - LRB104 10539 HLH 20615 b
1263	1263	1 by the lessor. If a lessor improperly collects any such amount
1264	1264	2 from the lessee, the lessee shall have a legal right to claim a
1265	1265	3 refund of that amount from the lessor. If, however, that
1266	1266	4 amount is not refunded to the lessee for any reason, the lessor
1267	1267	5 is liable to pay that amount to the Department.
1268	1268	6 (17) Beginning with taxable years ending on or after
1269	1269	7 December 31, 1995 and ending with taxable years ending on or
1270	1270	8 before December 31, 2004, personal property that is donated
1271	1271	9 for disaster relief to be used in a State or federally declared
1272	1272	10 disaster area in Illinois or bordering Illinois by a
1273	1273	11 manufacturer or retailer that is registered in this State to a
1274	1274	12 corporation, society, association, foundation, or institution
1275	1275	13 that has been issued a sales tax exemption identification
1276	1276	14 number by the Department that assists victims of the disaster
1277	1277	15 who reside within the declared disaster area.
1278	1278	16 (18) Beginning with taxable years ending on or after
1279	1279	17 December 31, 1995 and ending with taxable years ending on or
1280	1280	18 before December 31, 2004, personal property that is used in
1281	1281	19 the performance of infrastructure repairs in this State,
1282	1282	20 including, but not limited to, municipal roads and streets,
1283	1283	21 access roads, bridges, sidewalks, waste disposal systems,
1284	1284	22 water and sewer line extensions, water distribution and
1285	1285	23 purification facilities, storm water drainage and retention
1286	1286	24 facilities, and sewage treatment facilities, resulting from a
1287	1287	25 State or federally declared disaster in Illinois or bordering
1288	1288	26 Illinois when such repairs are initiated on facilities located
1289	1289
1290	1290
1291	1291
1292	1292
1293	1293
1294	1294	SB2028 - 35 - LRB104 10539 HLH 20615 b
1295	1295
1296	1296
1297	1297	SB2028- 36 -LRB104 10539 HLH 20615 b SB2028 - 36 - LRB104 10539 HLH 20615 b
1298	1298	SB2028 - 36 - LRB104 10539 HLH 20615 b
1299	1299	1 in the declared disaster area within 6 months after the
1300	1300	2 disaster.
1301	1301	3 (19) Beginning July 1, 1999, game or game birds purchased
1302	1302	4 at a "game breeding and hunting preserve area" as that term is
1303	1303	5 used in the Wildlife Code. This paragraph is exempt from the
1304	1304	6 provisions of Section 3-75.
1305	1305	7 (20) A motor vehicle, as that term is defined in Section
1306	1306	8 1-146 of the Illinois Vehicle Code, that is donated to a
1307	1307	9 corporation, limited liability company, society, association,
1308	1308	10 foundation, or institution that is determined by the
1309	1309	11 Department to be organized and operated exclusively for
1310	1310	12 educational purposes. For purposes of this exemption, "a
1311	1311	13 corporation, limited liability company, society, association,
1312	1312	14 foundation, or institution organized and operated exclusively
1313	1313	15 for educational purposes" means all tax-supported public
1314	1314	16 schools, private schools that offer systematic instruction in
1315	1315	17 useful branches of learning by methods common to public
1316	1316	18 schools and that compare favorably in their scope and
1317	1317	19 intensity with the course of study presented in tax-supported
1318	1318	20 schools, and vocational or technical schools or institutes
1319	1319	21 organized and operated exclusively to provide a course of
1320	1320	22 study of not less than 6 weeks duration and designed to prepare
1321	1321	23 individuals to follow a trade or to pursue a manual,
1322	1322	24 technical, mechanical, industrial, business, or commercial
1323	1323	25 occupation.
1324	1324	26 (21) Beginning January 1, 2000, personal property,
1325	1325
1326	1326
1327	1327
1328	1328
1329	1329
1330	1330	SB2028 - 36 - LRB104 10539 HLH 20615 b
1331	1331
1332	1332
1333	1333	SB2028- 37 -LRB104 10539 HLH 20615 b SB2028 - 37 - LRB104 10539 HLH 20615 b
1334	1334	SB2028 - 37 - LRB104 10539 HLH 20615 b
1335	1335	1 including food, purchased through fundraising events for the
1336	1336	2 benefit of a public or private elementary or secondary school,
1337	1337	3 a group of those schools, or one or more school districts if
1338	1338	4 the events are sponsored by an entity recognized by the school
1339	1339	5 district that consists primarily of volunteers and includes
1340	1340	6 parents and teachers of the school children. This paragraph
1341	1341	7 does not apply to fundraising events (i) for the benefit of
1342	1342	8 private home instruction or (ii) for which the fundraising
1343	1343	9 entity purchases the personal property sold at the events from
1344	1344	10 another individual or entity that sold the property for the
1345	1345	11 purpose of resale by the fundraising entity and that profits
1346	1346	12 from the sale to the fundraising entity. This paragraph is
1347	1347	13 exempt from the provisions of Section 3-75.
1348	1348	14 (22) Beginning January 1, 2000 and through December 31,
1349	1349	15 2001, new or used automatic vending machines that prepare and
1350	1350	16 serve hot food and beverages, including coffee, soup, and
1351	1351	17 other items, and replacement parts for these machines.
1352	1352	18 Beginning January 1, 2002 and through June 30, 2003, machines
1353	1353	19 and parts for machines used in commercial, coin-operated
1354	1354	20 amusement and vending business if a use or occupation tax is
1355	1355	21 paid on the gross receipts derived from the use of the
1356	1356	22 commercial, coin-operated amusement and vending machines. This
1357	1357	23 paragraph is exempt from the provisions of Section 3-75.
1358	1358	24 (23) Beginning August 23, 2001 and through June 30, 2016,
1359	1359	25 food for human consumption that is to be consumed off the
1360	1360	26 premises where it is sold (other than alcoholic beverages,
1361	1361
1362	1362
1363	1363
1364	1364
1365	1365
1366	1366	SB2028 - 37 - LRB104 10539 HLH 20615 b
1367	1367
1368	1368
1369	1369	SB2028- 38 -LRB104 10539 HLH 20615 b SB2028 - 38 - LRB104 10539 HLH 20615 b
1370	1370	SB2028 - 38 - LRB104 10539 HLH 20615 b
1371	1371	1 soft drinks, and food that has been prepared for immediate
1372	1372	2 consumption) and prescription and nonprescription medicines,
1373	1373	3 drugs, medical appliances, and insulin, urine testing
1374	1374	4 materials, syringes, and needles used by diabetics, for human
1375	1375	5 use, when purchased for use by a person receiving medical
1376	1376	6 assistance under Article V of the Illinois Public Aid Code who
1377	1377	7 resides in a licensed long-term care facility, as defined in
1378	1378	8 the Nursing Home Care Act, or in a licensed facility as defined
1379	1379	9 in the ID/DD Community Care Act, the MC/DD Act, or the
1380	1380	10 Specialized Mental Health Rehabilitation Act of 2013.
1381	1381	11 (24) Beginning on August 2, 2001 (the effective date of
1382	1382	12 Public Act 92-227), computers and communications equipment
1383	1383	13 utilized for any hospital purpose and equipment used in the
1384	1384	14 diagnosis, analysis, or treatment of hospital patients
1385	1385	15 purchased by a lessor who leases the equipment, under a lease
1386	1386	16 of one year or longer executed or in effect at the time the
1387	1387	17 lessor would otherwise be subject to the tax imposed by this
1388	1388	18 Act, to a hospital that has been issued an active tax exemption
1389	1389	19 identification number by the Department under Section 1g of
1390	1390	20 the Retailers' Occupation Tax Act. If the equipment is leased
1391	1391	21 in a manner that does not qualify for this exemption or is used
1392	1392	22 in any other nonexempt manner, the lessor shall be liable for
1393	1393	23 the tax imposed under this Act or the Use Tax Act, as the case
1394	1394	24 may be, based on the fair market value of the property at the
1395	1395	25 time the nonqualifying use occurs. No lessor shall collect or
1396	1396	26 attempt to collect an amount (however designated) that
1397	1397
1398	1398
1399	1399
1400	1400
1401	1401
1402	1402	SB2028 - 38 - LRB104 10539 HLH 20615 b
1403	1403
1404	1404
1405	1405	SB2028- 39 -LRB104 10539 HLH 20615 b SB2028 - 39 - LRB104 10539 HLH 20615 b
1406	1406	SB2028 - 39 - LRB104 10539 HLH 20615 b
1407	1407	1 purports to reimburse that lessor for the tax imposed by this
1408	1408	2 Act or the Use Tax Act, as the case may be, if the tax has not
1409	1409	3 been paid by the lessor. If a lessor improperly collects any
1410	1410	4 such amount from the lessee, the lessee shall have a legal
1411	1411	5 right to claim a refund of that amount from the lessor. If,
1412	1412	6 however, that amount is not refunded to the lessee for any
1413	1413	7 reason, the lessor is liable to pay that amount to the
1414	1414	8 Department. This paragraph is exempt from the provisions of
1415	1415	9 Section 3-75.
1416	1416	10 (25) Beginning on August 2, 2001 (the effective date of
1417	1417	11 Public Act 92-227), personal property purchased by a lessor
1418	1418	12 who leases the property, under a lease of one year or longer
1419	1419	13 executed or in effect at the time the lessor would otherwise be
1420	1420	14 subject to the tax imposed by this Act, to a governmental body
1421	1421	15 that has been issued an active tax exemption identification
1422	1422	16 number by the Department under Section 1g of the Retailers'
1423	1423	17 Occupation Tax Act. If the property is leased in a manner that
1424	1424	18 does not qualify for this exemption or is used in any other
1425	1425	19 nonexempt manner, the lessor shall be liable for the tax
1426	1426	20 imposed under this Act or the Use Tax Act, as the case may be,
1427	1427	21 based on the fair market value of the property at the time the
1428	1428	22 nonqualifying use occurs. No lessor shall collect or attempt
1429	1429	23 to collect an amount (however designated) that purports to
1430	1430	24 reimburse that lessor for the tax imposed by this Act or the
1431	1431	25 Use Tax Act, as the case may be, if the tax has not been paid
1432	1432	26 by the lessor. If a lessor improperly collects any such amount
1433	1433
1434	1434
1435	1435
1436	1436
1437	1437
1438	1438	SB2028 - 39 - LRB104 10539 HLH 20615 b
1439	1439
1440	1440
1441	1441	SB2028- 40 -LRB104 10539 HLH 20615 b SB2028 - 40 - LRB104 10539 HLH 20615 b
1442	1442	SB2028 - 40 - LRB104 10539 HLH 20615 b
1443	1443	1 from the lessee, the lessee shall have a legal right to claim a
1444	1444	2 refund of that amount from the lessor. If, however, that
1445	1445	3 amount is not refunded to the lessee for any reason, the lessor
1446	1446	4 is liable to pay that amount to the Department. This paragraph
1447	1447	5 is exempt from the provisions of Section 3-75.
1448	1448	6 (26) Beginning January 1, 2008, tangible personal property
1449	1449	7 used in the construction or maintenance of a community water
1450	1450	8 supply, as defined under Section 3.145 of the Environmental
1451	1451	9 Protection Act, that is operated by a not-for-profit
1452	1452	10 corporation that holds a valid water supply permit issued
1453	1453	11 under Title IV of the Environmental Protection Act. This
1454	1454	12 paragraph is exempt from the provisions of Section 3-75.
1455	1455	13 (27) Beginning January 1, 2010 and continuing through
1456	1456	14 December 31, 2029, materials, parts, equipment, components,
1457	1457	15 and furnishings incorporated into or upon an aircraft as part
1458	1458	16 of the modification, refurbishment, completion, replacement,
1459	1459	17 repair, or maintenance of the aircraft. This exemption
1460	1460	18 includes consumable supplies used in the modification,
1461	1461	19 refurbishment, completion, replacement, repair, and
1462	1462	20 maintenance of aircraft. However, until January 1, 2024, this
1463	1463	21 exemption excludes any materials, parts, equipment,
1464	1464	22 components, and consumable supplies used in the modification,
1465	1465	23 replacement, repair, and maintenance of aircraft engines or
1466	1466	24 power plants, whether such engines or power plants are
1467	1467	25 installed or uninstalled upon any such aircraft. "Consumable
1468	1468	26 supplies" include, but are not limited to, adhesive, tape,
1469	1469
1470	1470
1471	1471
1472	1472
1473	1473
1474	1474	SB2028 - 40 - LRB104 10539 HLH 20615 b
1475	1475
1476	1476
1477	1477	SB2028- 41 -LRB104 10539 HLH 20615 b SB2028 - 41 - LRB104 10539 HLH 20615 b
1478	1478	SB2028 - 41 - LRB104 10539 HLH 20615 b
1479	1479	1 sandpaper, general purpose lubricants, cleaning solution,
1480	1480	2 latex gloves, and protective films.
1481	1481	3 Beginning January 1, 2010 and continuing through December
1482	1482	4 31, 2023, this exemption applies only to the use of qualifying
1483	1483	5 tangible personal property transferred incident to the
1484	1484	6 modification, refurbishment, completion, replacement, repair,
1485	1485	7 or maintenance of aircraft by persons who (i) hold an Air
1486	1486	8 Agency Certificate and are empowered to operate an approved
1487	1487	9 repair station by the Federal Aviation Administration, (ii)
1488	1488	10 have a Class IV Rating, and (iii) conduct operations in
1489	1489	11 accordance with Part 145 of the Federal Aviation Regulations.
1490	1490	12 From January 1, 2024 through December 31, 2029, this exemption
1491	1491	13 applies only to the use of qualifying tangible personal
1492	1492	14 property transferred incident to: (A) the modification,
1493	1493	15 refurbishment, completion, repair, replacement, or maintenance
1494	1494	16 of an aircraft by persons who (i) hold an Air Agency
1495	1495	17 Certificate and are empowered to operate an approved repair
1496	1496	18 station by the Federal Aviation Administration, (ii) have a
1497	1497	19 Class IV Rating, and (iii) conduct operations in accordance
1498	1498	20 with Part 145 of the Federal Aviation Regulations; and (B) the
1499	1499	21 modification, replacement, repair, and maintenance of aircraft
1500	1500	22 engines or power plants without regard to whether or not those
1501	1501	23 persons meet the qualifications of item (A).
1502	1502	24 The exemption does not include aircraft operated by a
1503	1503	25 commercial air carrier providing scheduled passenger air
1504	1504	26 service pursuant to authority issued under Part 121 or Part
1505	1505
1506	1506
1507	1507
1508	1508
1509	1509
1510	1510	SB2028 - 41 - LRB104 10539 HLH 20615 b
1511	1511
1512	1512
1513	1513	SB2028- 42 -LRB104 10539 HLH 20615 b SB2028 - 42 - LRB104 10539 HLH 20615 b
1514	1514	SB2028 - 42 - LRB104 10539 HLH 20615 b
1515	1515	1 129 of the Federal Aviation Regulations. The changes made to
1516	1516	2 this paragraph (27) by Public Act 98-534 are declarative of
1517	1517	3 existing law. It is the intent of the General Assembly that the
1518	1518	4 exemption under this paragraph (27) applies continuously from
1519	1519	5 January 1, 2010 through December 31, 2024; however, no claim
1520	1520	6 for credit or refund is allowed for taxes paid as a result of
1521	1521	7 the disallowance of this exemption on or after January 1, 2015
1522	1522	8 and prior to February 5, 2020 (the effective date of Public Act
1523	1523	9 101-629).
1524	1524	10 (28) Tangible personal property purchased by a
1525	1525	11 public-facilities corporation, as described in Section
1526	1526	12 11-65-10 of the Illinois Municipal Code, for purposes of
1527	1527	13 constructing or furnishing a municipal convention hall, but
1528	1528	14 only if the legal title to the municipal convention hall is
1529	1529	15 transferred to the municipality without any further
1530	1530	16 consideration by or on behalf of the municipality at the time
1531	1531	17 of the completion of the municipal convention hall or upon the
1532	1532	18 retirement or redemption of any bonds or other debt
1533	1533	19 instruments issued by the public-facilities corporation in
1534	1534	20 connection with the development of the municipal convention
1535	1535	21 hall. This exemption includes existing public-facilities
1536	1536	22 corporations as provided in Section 11-65-25 of the Illinois
1537	1537	23 Municipal Code. This paragraph is exempt from the provisions
1538	1538	24 of Section 3-75.
1539	1539	25 (29) Beginning January 1, 2017 and through December 31,
1540	1540	26 2026, menstrual pads, tampons, and menstrual cups.
1541	1541
1542	1542
1543	1543
1544	1544
1545	1545
1546	1546	SB2028 - 42 - LRB104 10539 HLH 20615 b
1547	1547
1548	1548
1549	1549	SB2028- 43 -LRB104 10539 HLH 20615 b SB2028 - 43 - LRB104 10539 HLH 20615 b
1550	1550	SB2028 - 43 - LRB104 10539 HLH 20615 b
1551	1551	1 (30) Tangible personal property transferred to a purchaser
1552	1552	2 who is exempt from the tax imposed by this Act by operation of
1553	1553	3 federal law. This paragraph is exempt from the provisions of
1554	1554	4 Section 3-75.
1555	1555	5 (31) Qualified tangible personal property used in the
1556	1556	6 construction or operation of a data center that has been
1557	1557	7 granted a certificate of exemption by the Department of
1558	1558	8 Commerce and Economic Opportunity, whether that tangible
1559	1559	9 personal property is purchased by the owner, operator, or
1560	1560	10 tenant of the data center or by a contractor or subcontractor
1561	1561	11 of the owner, operator, or tenant. Data centers that would
1562	1562	12 have qualified for a certificate of exemption prior to January
1563	1563	13 1, 2020 had Public Act 101-31 been in effect, may apply for and
1564	1564	14 obtain an exemption for subsequent purchases of computer
1565	1565	15 equipment or enabling software purchased or leased to upgrade,
1566	1566	16 supplement, or replace computer equipment or enabling software
1567	1567	17 purchased or leased in the original investment that would have
1568	1568	18 qualified.
1569	1569	19 The Department of Commerce and Economic Opportunity shall
1570	1570	20 grant a certificate of exemption under this item (31) to
1571	1571	21 qualified data centers as defined by Section 605-1025 of the
1572	1572	22 Department of Commerce and Economic Opportunity Law of the
1573	1573	23 Civil Administrative Code of Illinois.
1574	1574	24 For the purposes of this item (31):
1575	1575	25 "Data center" means a building or a series of
1576	1576	26 buildings rehabilitated or constructed to house working
1577	1577
1578	1578
1579	1579
1580	1580
1581	1581
1582	1582	SB2028 - 43 - LRB104 10539 HLH 20615 b
1583	1583
1584	1584
1585	1585	SB2028- 44 -LRB104 10539 HLH 20615 b SB2028 - 44 - LRB104 10539 HLH 20615 b
1586	1586	SB2028 - 44 - LRB104 10539 HLH 20615 b
1587	1587	1 servers in one physical location or multiple sites within
1588	1588	2 the State of Illinois.
1589	1589	3 "Qualified tangible personal property" means:
1590	1590	4 electrical systems and equipment; climate control and
1591	1591	5 chilling equipment and systems; mechanical systems and
1592	1592	6 equipment; monitoring and secure systems; emergency
1593	1593	7 generators; hardware; computers; servers; data storage
1594	1594	8 devices; network connectivity equipment; racks; cabinets;
1595	1595	9 telecommunications cabling infrastructure; raised floor
1596	1596	10 systems; peripheral components or systems; software;
1597	1597	11 mechanical, electrical, or plumbing systems; battery
1598	1598	12 systems; cooling systems and towers; temperature control
1599	1599	13 systems; other cabling; and other data center
1600	1600	14 infrastructure equipment and systems necessary to operate
1601	1601	15 qualified tangible personal property, including fixtures;
1602	1602	16 and component parts of any of the foregoing, including
1603	1603	17 installation, maintenance, repair, refurbishment, and
1604	1604	18 replacement of qualified tangible personal property to
1605	1605	19 generate, transform, transmit, distribute, or manage
1606	1606	20 electricity necessary to operate qualified tangible
1607	1607	21 personal property; and all other tangible personal
1608	1608	22 property that is essential to the operations of a computer
1609	1609	23 data center. The term "qualified tangible personal
1610	1610	24 property" also includes building materials physically
1611	1611	25 incorporated into the qualifying data center. To document
1612	1612	26 the exemption allowed under this Section, the retailer
1613	1613
1614	1614
1615	1615
1616	1616
1617	1617
1618	1618	SB2028 - 44 - LRB104 10539 HLH 20615 b
1619	1619
1620	1620
1621	1621	SB2028- 45 -LRB104 10539 HLH 20615 b SB2028 - 45 - LRB104 10539 HLH 20615 b
1622	1622	SB2028 - 45 - LRB104 10539 HLH 20615 b
1623	1623	1 must obtain from the purchaser a copy of the certificate
1624	1624	2 of eligibility issued by the Department of Commerce and
1625	1625	3 Economic Opportunity.
1626	1626	4 This item (31) is exempt from the provisions of Section
1627	1627	5 3-75.
1628	1628	6 (32) Beginning July 1, 2022, breast pumps, breast pump
1629	1629	7 collection and storage supplies, and breast pump kits. This
1630	1630	8 item (32) is exempt from the provisions of Section 3-75. As
1631	1631	9 used in this item (32):
1632	1632	10 "Breast pump" means an electrically controlled or
1633	1633	11 manually controlled pump device designed or marketed to be
1634	1634	12 used to express milk from a human breast during lactation,
1635	1635	13 including the pump device and any battery, AC adapter, or
1636	1636	14 other power supply unit that is used to power the pump
1637	1637	15 device and is packaged and sold with the pump device at the
1638	1638	16 time of sale.
1639	1639	17 "Breast pump collection and storage supplies" means
1640	1640	18 items of tangible personal property designed or marketed
1641	1641	19 to be used in conjunction with a breast pump to collect
1642	1642	20 milk expressed from a human breast and to store collected
1643	1643	21 milk until it is ready for consumption.
1644	1644	22 "Breast pump collection and storage supplies"
1645	1645	23 includes, but is not limited to: breast shields and breast
1646	1646	24 shield connectors; breast pump tubes and tubing adapters;
1647	1647	25 breast pump valves and membranes; backflow protectors and
1648	1648	26 backflow protector adaptors; bottles and bottle caps
1649	1649
1650	1650
1651	1651
1652	1652
1653	1653
1654	1654	SB2028 - 45 - LRB104 10539 HLH 20615 b
1655	1655
1656	1656
1657	1657	SB2028- 46 -LRB104 10539 HLH 20615 b SB2028 - 46 - LRB104 10539 HLH 20615 b
1658	1658	SB2028 - 46 - LRB104 10539 HLH 20615 b
1659	1659	1 specific to the operation of the breast pump; and breast
1660	1660	2 milk storage bags.
1661	1661	3 "Breast pump collection and storage supplies" does not
1662	1662	4 include: (1) bottles and bottle caps not specific to the
1663	1663	5 operation of the breast pump; (2) breast pump travel bags
1664	1664	6 and other similar carrying accessories, including ice
1665	1665	7 packs, labels, and other similar products; (3) breast pump
1666	1666	8 cleaning supplies; (4) nursing bras, bra pads, breast
1667	1667	9 shells, and other similar products; and (5) creams,
1668	1668	10 ointments, and other similar products that relieve
1669	1669	11 breastfeeding-related symptoms or conditions of the
1670	1670	12 breasts or nipples, unless sold as part of a breast pump
1671	1671	13 kit that is pre-packaged by the breast pump manufacturer
1672	1672	14 or distributor.
1673	1673	15 "Breast pump kit" means a kit that: (1) contains no
1674	1674	16 more than a breast pump, breast pump collection and
1675	1675	17 storage supplies, a rechargeable battery for operating the
1676	1676	18 breast pump, a breastmilk cooler, bottle stands, ice
1677	1677	19 packs, and a breast pump carrying case; and (2) is
1678	1678	20 pre-packaged as a breast pump kit by the breast pump
1679	1679	21 manufacturer or distributor.
1680	1680	22 (33) Tangible personal property sold by or on behalf of
1681	1681	23 the State Treasurer pursuant to the Revised Uniform Unclaimed
1682	1682	24 Property Act. This item (33) is exempt from the provisions of
1683	1683	25 Section 3-75.
1684	1684	26 (34) Beginning on January 1, 2024, tangible personal
1685	1685
1686	1686
1687	1687
1688	1688
1689	1689
1690	1690	SB2028 - 46 - LRB104 10539 HLH 20615 b
1691	1691
1692	1692
1693	1693	SB2028- 47 -LRB104 10539 HLH 20615 b SB2028 - 47 - LRB104 10539 HLH 20615 b
1694	1694	SB2028 - 47 - LRB104 10539 HLH 20615 b
1695	1695	1 property purchased by an active duty member of the armed
1696	1696	2 forces of the United States who presents valid military
1697	1697	3 identification and purchases the property using a form of
1698	1698	4 payment where the federal government is the payor. The member
1699	1699	5 of the armed forces must complete, at the point of sale, a form
1700	1700	6 prescribed by the Department of Revenue documenting that the
1701	1701	7 transaction is eligible for the exemption under this
1702	1702	8 paragraph. Retailers must keep the form as documentation of
1703	1703	9 the exemption in their records for a period of not less than 6
1704	1704	10 years. "Armed forces of the United States" means the United
1705	1705	11 States Army, Navy, Air Force, Space Force, Marine Corps, or
1706	1706	12 Coast Guard. This paragraph is exempt from the provisions of
1707	1707	13 Section 3-75.
1708	1708	14 (35) Beginning July 1, 2024, home-delivered meals provided
1709	1709	15 to Medicare or Medicaid recipients when payment is made by an
1710	1710	16 intermediary, such as a Medicare Administrative Contractor, a
1711	1711	17 Managed Care Organization, or a Medicare Advantage
1712	1712	18 Organization, pursuant to a government contract. This
1713	1713	19 paragraph (35) is exempt from the provisions of Section 3-75.
1714	1714	20 (36) (35) Beginning on January 1, 2026, as further defined
1715	1715	21 in Section 3-10, food prepared for immediate consumption and
1716	1716	22 transferred incident to a sale of service subject to this Act
1717	1717	23 or the Service Occupation Tax Act by an entity licensed under
1718	1718	24 the Hospital Licensing Act, the Nursing Home Care Act, the
1719	1719	25 Assisted Living and Shared Housing Act, the ID/DD Community
1720	1720	26 Care Act, the MC/DD Act, the Specialized Mental Health
1721	1721
1722	1722
1723	1723
1724	1724
1725	1725
1726	1726	SB2028 - 47 - LRB104 10539 HLH 20615 b
1727	1727
1728	1728
1729	1729	SB2028- 48 -LRB104 10539 HLH 20615 b SB2028 - 48 - LRB104 10539 HLH 20615 b
1730	1730	SB2028 - 48 - LRB104 10539 HLH 20615 b
1731	1731	1 Rehabilitation Act of 2013, or the Child Care Act of 1969, or
1732	1732	2 by an entity that holds a permit issued pursuant to the Life
1733	1733	3 Care Facilities Act. This item (36) (35) is exempt from the
1734	1734	4 provisions of Section 3-75.
1735	1735	5 (37) (36) Beginning on January 1, 2026, as further defined
1736	1736	6 in Section 3-10, food for human consumption that is to be
1737	1737	7 consumed off the premises where it is sold (other than
1738	1738	8 alcoholic beverages, food consisting of or infused with adult
1739	1739	9 use cannabis, soft drinks, candy, and food that has been
1740	1740	10 prepared for immediate consumption). This item (37) (36) is
1741	1741	11 exempt from the provisions of Section 3-75.
1742	1742	12 (38) (35) Use by a lessee of the following leased tangible
1743	1743	13 personal property:
1744	1744	14 (1) software transferred subject to a license that
1745	1745	15 meets the following requirements:
1746	1746	16 (A) it is evidenced by a written agreement signed
1747	1747	17 by the licensor and the customer;
1748	1748	18 (i) an electronic agreement in which the
1749	1749	19 customer accepts the license by means of an
1750	1750	20 electronic signature that is verifiable and can be
1751	1751	21 authenticated and is attached to or made part of
1752	1752	22 the license will comply with this requirement;
1753	1753	23 (ii) a license agreement in which the customer
1754	1754	24 electronically accepts the terms by clicking "I
1755	1755	25 agree" does not comply with this requirement;
1756	1756	26 (B) it restricts the customer's duplication and
1757	1757
1758	1758
1759	1759
1760	1760
1761	1761
1762	1762	SB2028 - 48 - LRB104 10539 HLH 20615 b
1763	1763
1764	1764
1765	1765	SB2028- 49 -LRB104 10539 HLH 20615 b SB2028 - 49 - LRB104 10539 HLH 20615 b
1766	1766	SB2028 - 49 - LRB104 10539 HLH 20615 b
1767	1767	1 use of the software;
1768	1768	2 (C) it prohibits the customer from licensing,
1769	1769	3 sublicensing, or transferring the software to a third
1770	1770	4 party (except to a related party) without the
1771	1771	5 permission and continued control of the licensor;
1772	1772	6 (D) the licensor has a policy of providing another
1773	1773	7 copy at minimal or no charge if the customer loses or
1774	1774	8 damages the software, or of permitting the licensee to
1775	1775	9 make and keep an archival copy, and such policy is
1776	1776	10 either stated in the license agreement, supported by
1777	1777	11 the licensor's books and records, or supported by a
1778	1778	12 notarized statement made under penalties of perjury by
1779	1779	13 the licensor; and
1780	1780	14 (E) the customer must destroy or return all copies
1781	1781	15 of the software to the licensor at the end of the
1782	1782	16 license period; this provision is deemed to be met, in
1783	1783	17 the case of a perpetual license, without being set
1784	1784	18 forth in the license agreement; and
1785	1785	19 (2) property that is subject to a tax on lease
1786	1786	20 receipts imposed by a home rule unit of local government
1787	1787	21 if the ordinance imposing that tax was adopted prior to
1788	1788	22 January 1, 2023.
1789	1789	23 (39) Equipment and materials placed in service on or after
1790	1790	24 January 1, 2026 that are incorporated into or used in the
1791	1791	25 business of providing broadband services, including all
1792	1792	26 equipment and materials machinery, software, or other tangible
1793	1793
1794	1794
1795	1795
1796	1796
1797	1797
1798	1798	SB2028 - 49 - LRB104 10539 HLH 20615 b
1799	1799
1800	1800
1801	1801	SB2028- 50 -LRB104 10539 HLH 20615 b SB2028 - 50 - LRB104 10539 HLH 20615 b
1802	1802	SB2028 - 50 - LRB104 10539 HLH 20615 b
1803	1803	1 personal property that is used in whole or in part in
1804	1804	2 producing, broadcasting, distributing, sending, receiving,
1805	1805	3 storing, transmitting, retransmitting, amplifying, switching,
1806	1806	4 or routing broadband services, including the monitoring,
1807	1807	5 testing, maintaining, enabling, or facilitating of such
1808	1808	6 equipment, machinery, software, or other infrastructure. That
1809	1809	7 property includes, but is not limited to, wires, cables
1810	1810	8 including fiber optic cables, antennas, poles, switches,
1811	1811	9 routers, amplifiers, rectifiers, repeaters, receivers,
1812	1812	10 multiplexers, duplexers, transmitters, power equipment, backup
1813	1813	11 power equipment, diagnostic equipment, storage devices,
1814	1814	12 modems, and other general central office equipment, such as
1815	1815	13 channel cards, frames, and cabinets. As used in this item
1816	1816	14 (39), "broadband" and "broadband service" have the meanings
1817	1817	15 given to those terms under Section 10 of the Broadband
1818	1818	16 Advisory Council Act. This item (39) is exempt from the
1819	1819	17 provisions of Section 3-75.
1820	1820	18 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
1821	1821	19 Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1822	1822	20 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
1823	1823	21 Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
1824	1824	22 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
1825	1825	23 103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
1826	1826	24 7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995,
1827	1827	25 eff. 8-9-24; revised 11-26-24.)
1828	1828
1829	1829
1830	1830
1831	1831
1832	1832
1833	1833	SB2028 - 50 - LRB104 10539 HLH 20615 b
1834	1834
1835	1835
1836	1836	SB2028- 51 -LRB104 10539 HLH 20615 b SB2028 - 51 - LRB104 10539 HLH 20615 b
1837	1837	SB2028 - 51 - LRB104 10539 HLH 20615 b
1838	1838	1 Section 15. The Service Occupation Tax Act is amended by
1839	1839	2 changing Section 3-5 as follows:
1840	1840	3 (35 ILCS 115/3-5)
1841	1841	4 Sec. 3-5. Exemptions. The following tangible personal
1842	1842	5 property is exempt from the tax imposed by this Act:
1843	1843	6 (1) Personal property sold by a corporation, society,
1844	1844	7 association, foundation, institution, or organization, other
1845	1845	8 than a limited liability company, that is organized and
1846	1846	9 operated as a not-for-profit service enterprise for the
1847	1847	10 benefit of persons 65 years of age or older if the personal
1848	1848	11 property was not purchased by the enterprise for the purpose
1849	1849	12 of resale by the enterprise.
1850	1850	13 (2) Personal property purchased by a not-for-profit
1851	1851	14 Illinois county fair association for use in conducting,
1852	1852	15 operating, or promoting the county fair.
1853	1853	16 (3) Personal property purchased by any not-for-profit arts
1854	1854	17 or cultural organization that establishes, by proof required
1855	1855	18 by the Department by rule, that it has received an exemption
1856	1856	19 under Section 501(c)(3) of the Internal Revenue Code and that
1857	1857	20 is organized and operated primarily for the presentation or
1858	1858	21 support of arts or cultural programming, activities, or
1859	1859	22 services. These organizations include, but are not limited to,
1860	1860	23 music and dramatic arts organizations such as symphony
1861	1861	24 orchestras and theatrical groups, arts and cultural service
1862	1862	25 organizations, local arts councils, visual arts organizations,
1863	1863
1864	1864
1865	1865
1866	1866
1867	1867
1868	1868	SB2028 - 51 - LRB104 10539 HLH 20615 b
1869	1869
1870	1870
1871	1871	SB2028- 52 -LRB104 10539 HLH 20615 b SB2028 - 52 - LRB104 10539 HLH 20615 b
1872	1872	SB2028 - 52 - LRB104 10539 HLH 20615 b
1873	1873	1 and media arts organizations. On and after July 1, 2001 (the
1874	1874	2 effective date of Public Act 92-35), however, an entity
1875	1875	3 otherwise eligible for this exemption shall not make tax-free
1876	1876	4 purchases unless it has an active identification number issued
1877	1877	5 by the Department.
1878	1878	6 (4) Legal tender, currency, medallions, or gold or silver
1879	1879	7 coinage issued by the State of Illinois, the government of the
1880	1880	8 United States of America, or the government of any foreign
1881	1881	9 country, and bullion.
1882	1882	10 (5) Until July 1, 2003 and beginning again on September 1,
1883	1883	11 2004 through August 30, 2014, graphic arts machinery and
1884	1884	12 equipment, including repair and replacement parts, both new
1885	1885	13 and used, and including that manufactured on special order or
1886	1886	14 purchased for lease, certified by the purchaser to be used
1887	1887	15 primarily for graphic arts production. Equipment includes
1888	1888	16 chemicals or chemicals acting as catalysts but only if the
1889	1889	17 chemicals or chemicals acting as catalysts effect a direct and
1890	1890	18 immediate change upon a graphic arts product. Beginning on
1891	1891	19 July 1, 2017, graphic arts machinery and equipment is included
1892	1892	20 in the manufacturing and assembling machinery and equipment
1893	1893	21 exemption under Section 2 of this Act.
1894	1894	22 (6) Personal property sold by a teacher-sponsored student
1895	1895	23 organization affiliated with an elementary or secondary school
1896	1896	24 located in Illinois.
1897	1897	25 (7) Farm machinery and equipment, both new and used,
1898	1898	26 including that manufactured on special order, certified by the
1899	1899
1900	1900
1901	1901
1902	1902
1903	1903
1904	1904	SB2028 - 52 - LRB104 10539 HLH 20615 b
1905	1905
1906	1906
1907	1907	SB2028- 53 -LRB104 10539 HLH 20615 b SB2028 - 53 - LRB104 10539 HLH 20615 b
1908	1908	SB2028 - 53 - LRB104 10539 HLH 20615 b
1909	1909	1 purchaser to be used primarily for production agriculture or
1910	1910	2 State or federal agricultural programs, including individual
1911	1911	3 replacement parts for the machinery and equipment, including
1912	1912	4 machinery and equipment purchased for lease, and including
1913	1913	5 implements of husbandry defined in Section 1-130 of the
1914	1914	6 Illinois Vehicle Code, farm machinery and agricultural
1915	1915	7 chemical and fertilizer spreaders, and nurse wagons required
1916	1916	8 to be registered under Section 3-809 of the Illinois Vehicle
1917	1917	9 Code, but excluding other motor vehicles required to be
1918	1918	10 registered under the Illinois Vehicle Code. Horticultural
1919	1919	11 polyhouses or hoop houses used for propagating, growing, or
1920	1920	12 overwintering plants shall be considered farm machinery and
1921	1921	13 equipment under this item (7). Agricultural chemical tender
1922	1922	14 tanks and dry boxes shall include units sold separately from a
1923	1923	15 motor vehicle required to be licensed and units sold mounted
1924	1924	16 on a motor vehicle required to be licensed if the selling price
1925	1925	17 of the tender is separately stated.
1926	1926	18 Farm machinery and equipment shall include precision
1927	1927	19 farming equipment that is installed or purchased to be
1928	1928	20 installed on farm machinery and equipment, including, but not
1929	1929	21 limited to, tractors, harvesters, sprayers, planters, seeders,
1930	1930	22 or spreaders. Precision farming equipment includes, but is not
1931	1931	23 limited to, soil testing sensors, computers, monitors,
1932	1932	24 software, global positioning and mapping systems, and other
1933	1933	25 such equipment.
1934	1934	26 Farm machinery and equipment also includes computers,
1935	1935
1936	1936
1937	1937
1938	1938
1939	1939
1940	1940	SB2028 - 53 - LRB104 10539 HLH 20615 b
1941	1941
1942	1942
1943	1943	SB2028- 54 -LRB104 10539 HLH 20615 b SB2028 - 54 - LRB104 10539 HLH 20615 b
1944	1944	SB2028 - 54 - LRB104 10539 HLH 20615 b
1945	1945	1 sensors, software, and related equipment used primarily in the
1946	1946	2 computer-assisted operation of production agriculture
1947	1947	3 facilities, equipment, and activities such as, but not limited
1948	1948	4 to, the collection, monitoring, and correlation of animal and
1949	1949	5 crop data for the purpose of formulating animal diets and
1950	1950	6 agricultural chemicals.
1951	1951	7 Beginning on January 1, 2024, farm machinery and equipment
1952	1952	8 also includes electrical power generation equipment used
1953	1953	9 primarily for production agriculture.
1954	1954	10 This item (7) is exempt from the provisions of Section
1955	1955	11 3-55.
1956	1956	12 (8) Until June 30, 2013, fuel and petroleum products sold
1957	1957	13 to or used by an air common carrier, certified by the carrier
1958	1958	14 to be used for consumption, shipment, or storage in the
1959	1959	15 conduct of its business as an air common carrier, for a flight
1960	1960	16 destined for or returning from a location or locations outside
1961	1961	17 the United States without regard to previous or subsequent
1962	1962	18 domestic stopovers.
1963	1963	19 Beginning July 1, 2013, fuel and petroleum products sold
1964	1964	20 to or used by an air carrier, certified by the carrier to be
1965	1965	21 used for consumption, shipment, or storage in the conduct of
1966	1966	22 its business as an air common carrier, for a flight that (i) is
1967	1967	23 engaged in foreign trade or is engaged in trade between the
1968	1968	24 United States and any of its possessions and (ii) transports
1969	1969	25 at least one individual or package for hire from the city of
1970	1970	26 origination to the city of final destination on the same
1971	1971
1972	1972
1973	1973
1974	1974
1975	1975
1976	1976	SB2028 - 54 - LRB104 10539 HLH 20615 b
1977	1977
1978	1978
1979	1979	SB2028- 55 -LRB104 10539 HLH 20615 b SB2028 - 55 - LRB104 10539 HLH 20615 b
1980	1980	SB2028 - 55 - LRB104 10539 HLH 20615 b
1981	1981	1 aircraft, without regard to a change in the flight number of
1982	1982	2 that aircraft.
1983	1983	3 (9) Proceeds of mandatory service charges separately
1984	1984	4 stated on customers' bills for the purchase and consumption of
1985	1985	5 food and beverages, to the extent that the proceeds of the
1986	1986	6 service charge are in fact turned over as tips or as a
1987	1987	7 substitute for tips to the employees who participate directly
1988	1988	8 in preparing, serving, hosting or cleaning up the food or
1989	1989	9 beverage function with respect to which the service charge is
1990	1990	10 imposed.
1991	1991	11 (10) Until July 1, 2003, oil field exploration, drilling,
1992	1992	12 and production equipment, including (i) rigs and parts of
1993	1993	13 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1994	1994	14 pipe and tubular goods, including casing and drill strings,
1995	1995	15 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1996	1996	16 lines, (v) any individual replacement part for oil field
1997	1997	17 exploration, drilling, and production equipment, and (vi)
1998	1998	18 machinery and equipment purchased for lease; but excluding
1999	1999	19 motor vehicles required to be registered under the Illinois
2000	2000	20 Vehicle Code.
2001	2001	21 (11) Photoprocessing machinery and equipment, including
2002	2002	22 repair and replacement parts, both new and used, including
2003	2003	23 that manufactured on special order, certified by the purchaser
2004	2004	24 to be used primarily for photoprocessing, and including
2005	2005	25 photoprocessing machinery and equipment purchased for lease.
2006	2006	26 (12) Until July 1, 2028, coal and aggregate exploration,
2007	2007
2008	2008
2009	2009
2010	2010
2011	2011
2012	2012	SB2028 - 55 - LRB104 10539 HLH 20615 b
2013	2013
2014	2014
2015	2015	SB2028- 56 -LRB104 10539 HLH 20615 b SB2028 - 56 - LRB104 10539 HLH 20615 b
2016	2016	SB2028 - 56 - LRB104 10539 HLH 20615 b
2017	2017	1 mining, off-highway hauling, processing, maintenance, and
2018	2018	2 reclamation equipment, including replacement parts and
2019	2019	3 equipment, and including equipment purchased for lease, but
2020	2020	4 excluding motor vehicles required to be registered under the
2021	2021	5 Illinois Vehicle Code. The changes made to this Section by
2022	2022	6 Public Act 97-767 apply on and after July 1, 2003, but no claim
2023	2023	7 for credit or refund is allowed on or after August 16, 2013
2024	2024	8 (the effective date of Public Act 98-456) for such taxes paid
2025	2025	9 during the period beginning July 1, 2003 and ending on August
2026	2026	10 16, 2013 (the effective date of Public Act 98-456).
2027	2027	11 (13) Beginning January 1, 1992 and through June 30, 2016,
2028	2028	12 food for human consumption that is to be consumed off the
2029	2029	13 premises where it is sold (other than alcoholic beverages,
2030	2030	14 soft drinks and food that has been prepared for immediate
2031	2031	15 consumption) and prescription and non-prescription medicines,
2032	2032	16 drugs, medical appliances, and insulin, urine testing
2033	2033	17 materials, syringes, and needles used by diabetics, for human
2034	2034	18 use, when purchased for use by a person receiving medical
2035	2035	19 assistance under Article V of the Illinois Public Aid Code who
2036	2036	20 resides in a licensed long-term care facility, as defined in
2037	2037	21 the Nursing Home Care Act, or in a licensed facility as defined
2038	2038	22 in the ID/DD Community Care Act, the MC/DD Act, or the
2039	2039	23 Specialized Mental Health Rehabilitation Act of 2013.
2040	2040	24 (14) Semen used for artificial insemination of livestock
2041	2041	25 for direct agricultural production.
2042	2042	26 (15) Horses, or interests in horses, registered with and
2043	2043
2044	2044
2045	2045
2046	2046
2047	2047
2048	2048	SB2028 - 56 - LRB104 10539 HLH 20615 b
2049	2049
2050	2050
2051	2051	SB2028- 57 -LRB104 10539 HLH 20615 b SB2028 - 57 - LRB104 10539 HLH 20615 b
2052	2052	SB2028 - 57 - LRB104 10539 HLH 20615 b
2053	2053	1 meeting the requirements of any of the Arabian Horse Club
2054	2054	2 Registry of America, Appaloosa Horse Club, American Quarter
2055	2055	3 Horse Association, United States Trotting Association, or
2056	2056	4 Jockey Club, as appropriate, used for purposes of breeding or
2057	2057	5 racing for prizes. This item (15) is exempt from the
2058	2058	6 provisions of Section 3-55, and the exemption provided for
2059	2059	7 under this item (15) applies for all periods beginning May 30,
2060	2060	8 1995, but no claim for credit or refund is allowed on or after
2061	2061	9 January 1, 2008 (the effective date of Public Act 95-88) for
2062	2062	10 such taxes paid during the period beginning May 30, 2000 and
2063	2063	11 ending on January 1, 2008 (the effective date of Public Act
2064	2064	12 95-88).
2065	2065	13 (16) Computers and communications equipment utilized for
2066	2066	14 any hospital purpose and equipment used in the diagnosis,
2067	2067	15 analysis, or treatment of hospital patients sold to a lessor
2068	2068	16 who leases the equipment, under a lease of one year or longer
2069	2069	17 executed or in effect at the time of the purchase, to a
2070	2070	18 hospital that has been issued an active tax exemption
2071	2071	19 identification number by the Department under Section 1g of
2072	2072	20 the Retailers' Occupation Tax Act.
2073	2073	21 (17) Personal property sold to a lessor who leases the
2074	2074	22 property, under a lease of one year or longer executed or in
2075	2075	23 effect at the time of the purchase, to a governmental body that
2076	2076	24 has been issued an active tax exemption identification number
2077	2077	25 by the Department under Section 1g of the Retailers'
2078	2078	26 Occupation Tax Act.
2079	2079
2080	2080
2081	2081
2082	2082
2083	2083
2084	2084	SB2028 - 57 - LRB104 10539 HLH 20615 b
2085	2085
2086	2086
2087	2087	SB2028- 58 -LRB104 10539 HLH 20615 b SB2028 - 58 - LRB104 10539 HLH 20615 b
2088	2088	SB2028 - 58 - LRB104 10539 HLH 20615 b
2089	2089	1 (18) Beginning with taxable years ending on or after
2090	2090	2 December 31, 1995 and ending with taxable years ending on or
2091	2091	3 before December 31, 2004, personal property that is donated
2092	2092	4 for disaster relief to be used in a State or federally declared
2093	2093	5 disaster area in Illinois or bordering Illinois by a
2094	2094	6 manufacturer or retailer that is registered in this State to a
2095	2095	7 corporation, society, association, foundation, or institution
2096	2096	8 that has been issued a sales tax exemption identification
2097	2097	9 number by the Department that assists victims of the disaster
2098	2098	10 who reside within the declared disaster area.
2099	2099	11 (19) Beginning with taxable years ending on or after
2100	2100	12 December 31, 1995 and ending with taxable years ending on or
2101	2101	13 before December 31, 2004, personal property that is used in
2102	2102	14 the performance of infrastructure repairs in this State,
2103	2103	15 including, but not limited to, municipal roads and streets,
2104	2104	16 access roads, bridges, sidewalks, waste disposal systems,
2105	2105	17 water and sewer line extensions, water distribution and
2106	2106	18 purification facilities, storm water drainage and retention
2107	2107	19 facilities, and sewage treatment facilities, resulting from a
2108	2108	20 State or federally declared disaster in Illinois or bordering
2109	2109	21 Illinois when such repairs are initiated on facilities located
2110	2110	22 in the declared disaster area within 6 months after the
2111	2111	23 disaster.
2112	2112	24 (20) Beginning July 1, 1999, game or game birds sold at a
2113	2113	25 "game breeding and hunting preserve area" as that term is used
2114	2114	26 in the Wildlife Code. This paragraph is exempt from the
2115	2115
2116	2116
2117	2117
2118	2118
2119	2119
2120	2120	SB2028 - 58 - LRB104 10539 HLH 20615 b
2121	2121
2122	2122
2123	2123	SB2028- 59 -LRB104 10539 HLH 20615 b SB2028 - 59 - LRB104 10539 HLH 20615 b
2124	2124	SB2028 - 59 - LRB104 10539 HLH 20615 b
2125	2125	1 provisions of Section 3-55.
2126	2126	2 (21) A motor vehicle, as that term is defined in Section
2127	2127	3 1-146 of the Illinois Vehicle Code, that is donated to a
2128	2128	4 corporation, limited liability company, society, association,
2129	2129	5 foundation, or institution that is determined by the
2130	2130	6 Department to be organized and operated exclusively for
2131	2131	7 educational purposes. For purposes of this exemption, "a
2132	2132	8 corporation, limited liability company, society, association,
2133	2133	9 foundation, or institution organized and operated exclusively
2134	2134	10 for educational purposes" means all tax-supported public
2135	2135	11 schools, private schools that offer systematic instruction in
2136	2136	12 useful branches of learning by methods common to public
2137	2137	13 schools and that compare favorably in their scope and
2138	2138	14 intensity with the course of study presented in tax-supported
2139	2139	15 schools, and vocational or technical schools or institutes
2140	2140	16 organized and operated exclusively to provide a course of
2141	2141	17 study of not less than 6 weeks duration and designed to prepare
2142	2142	18 individuals to follow a trade or to pursue a manual,
2143	2143	19 technical, mechanical, industrial, business, or commercial
2144	2144	20 occupation.
2145	2145	21 (22) Beginning January 1, 2000, personal property,
2146	2146	22 including food, purchased through fundraising events for the
2147	2147	23 benefit of a public or private elementary or secondary school,
2148	2148	24 a group of those schools, or one or more school districts if
2149	2149	25 the events are sponsored by an entity recognized by the school
2150	2150	26 district that consists primarily of volunteers and includes
2151	2151
2152	2152
2153	2153
2154	2154
2155	2155
2156	2156	SB2028 - 59 - LRB104 10539 HLH 20615 b
2157	2157
2158	2158
2159	2159	SB2028- 60 -LRB104 10539 HLH 20615 b SB2028 - 60 - LRB104 10539 HLH 20615 b
2160	2160	SB2028 - 60 - LRB104 10539 HLH 20615 b
2161	2161	1 parents and teachers of the school children. This paragraph
2162	2162	2 does not apply to fundraising events (i) for the benefit of
2163	2163	3 private home instruction or (ii) for which the fundraising
2164	2164	4 entity purchases the personal property sold at the events from
2165	2165	5 another individual or entity that sold the property for the
2166	2166	6 purpose of resale by the fundraising entity and that profits
2167	2167	7 from the sale to the fundraising entity. This paragraph is
2168	2168	8 exempt from the provisions of Section 3-55.
2169	2169	9 (23) Beginning January 1, 2000 and through December 31,
2170	2170	10 2001, new or used automatic vending machines that prepare and
2171	2171	11 serve hot food and beverages, including coffee, soup, and
2172	2172	12 other items, and replacement parts for these machines.
2173	2173	13 Beginning January 1, 2002 and through June 30, 2003, machines
2174	2174	14 and parts for machines used in commercial, coin-operated
2175	2175	15 amusement and vending business if a use or occupation tax is
2176	2176	16 paid on the gross receipts derived from the use of the
2177	2177	17 commercial, coin-operated amusement and vending machines. This
2178	2178	18 paragraph is exempt from the provisions of Section 3-55.
2179	2179	19 (24) Beginning on August 2, 2001 (the effective date of
2180	2180	20 Public Act 92-227), computers and communications equipment
2181	2181	21 utilized for any hospital purpose and equipment used in the
2182	2182	22 diagnosis, analysis, or treatment of hospital patients sold to
2183	2183	23 a lessor who leases the equipment, under a lease of one year or
2184	2184	24 longer executed or in effect at the time of the purchase, to a
2185	2185	25 hospital that has been issued an active tax exemption
2186	2186	26 identification number by the Department under Section 1g of
2187	2187
2188	2188
2189	2189
2190	2190
2191	2191
2192	2192	SB2028 - 60 - LRB104 10539 HLH 20615 b
2193	2193
2194	2194
2195	2195	SB2028- 61 -LRB104 10539 HLH 20615 b SB2028 - 61 - LRB104 10539 HLH 20615 b
2196	2196	SB2028 - 61 - LRB104 10539 HLH 20615 b
2197	2197	1 the Retailers' Occupation Tax Act. This paragraph is exempt
2198	2198	2 from the provisions of Section 3-55.
2199	2199	3 (25) Beginning on August 2, 2001 (the effective date of
2200	2200	4 Public Act 92-227), personal property sold to a lessor who
2201	2201	5 leases the property, under a lease of one year or longer
2202	2202	6 executed or in effect at the time of the purchase, to a
2203	2203	7 governmental body that has been issued an active tax exemption
2204	2204	8 identification number by the Department under Section 1g of
2205	2205	9 the Retailers' Occupation Tax Act. This paragraph is exempt
2206	2206	10 from the provisions of Section 3-55.
2207	2207	11 (26) Beginning on January 1, 2002 and through June 30,
2208	2208	12 2016, tangible personal property purchased from an Illinois
2209	2209	13 retailer by a taxpayer engaged in centralized purchasing
2210	2210	14 activities in Illinois who will, upon receipt of the property
2211	2211	15 in Illinois, temporarily store the property in Illinois (i)
2212	2212	16 for the purpose of subsequently transporting it outside this
2213	2213	17 State for use or consumption thereafter solely outside this
2214	2214	18 State or (ii) for the purpose of being processed, fabricated,
2215	2215	19 or manufactured into, attached to, or incorporated into other
2216	2216	20 tangible personal property to be transported outside this
2217	2217	21 State and thereafter used or consumed solely outside this
2218	2218	22 State. The Director of Revenue shall, pursuant to rules
2219	2219	23 adopted in accordance with the Illinois Administrative
2220	2220	24 Procedure Act, issue a permit to any taxpayer in good standing
2221	2221	25 with the Department who is eligible for the exemption under
2222	2222	26 this paragraph (26). The permit issued under this paragraph
2223	2223
2224	2224
2225	2225
2226	2226
2227	2227
2228	2228	SB2028 - 61 - LRB104 10539 HLH 20615 b
2229	2229
2230	2230
2231	2231	SB2028- 62 -LRB104 10539 HLH 20615 b SB2028 - 62 - LRB104 10539 HLH 20615 b
2232	2232	SB2028 - 62 - LRB104 10539 HLH 20615 b
2233	2233	1 (26) shall authorize the holder, to the extent and in the
2234	2234	2 manner specified in the rules adopted under this Act, to
2235	2235	3 purchase tangible personal property from a retailer exempt
2236	2236	4 from the taxes imposed by this Act. Taxpayers shall maintain
2237	2237	5 all necessary books and records to substantiate the use and
2238	2238	6 consumption of all such tangible personal property outside of
2239	2239	7 the State of Illinois.
2240	2240	8 (27) Beginning January 1, 2008, tangible personal property
2241	2241	9 used in the construction or maintenance of a community water
2242	2242	10 supply, as defined under Section 3.145 of the Environmental
2243	2243	11 Protection Act, that is operated by a not-for-profit
2244	2244	12 corporation that holds a valid water supply permit issued
2245	2245	13 under Title IV of the Environmental Protection Act. This
2246	2246	14 paragraph is exempt from the provisions of Section 3-55.
2247	2247	15 (28) Tangible personal property sold to a
2248	2248	16 public-facilities corporation, as described in Section
2249	2249	17 11-65-10 of the Illinois Municipal Code, for purposes of
2250	2250	18 constructing or furnishing a municipal convention hall, but
2251	2251	19 only if the legal title to the municipal convention hall is
2252	2252	20 transferred to the municipality without any further
2253	2253	21 consideration by or on behalf of the municipality at the time
2254	2254	22 of the completion of the municipal convention hall or upon the
2255	2255	23 retirement or redemption of any bonds or other debt
2256	2256	24 instruments issued by the public-facilities corporation in
2257	2257	25 connection with the development of the municipal convention
2258	2258	26 hall. This exemption includes existing public-facilities
2259	2259
2260	2260
2261	2261
2262	2262
2263	2263
2264	2264	SB2028 - 62 - LRB104 10539 HLH 20615 b
2265	2265
2266	2266
2267	2267	SB2028- 63 -LRB104 10539 HLH 20615 b SB2028 - 63 - LRB104 10539 HLH 20615 b
2268	2268	SB2028 - 63 - LRB104 10539 HLH 20615 b
2269	2269	1 corporations as provided in Section 11-65-25 of the Illinois
2270	2270	2 Municipal Code. This paragraph is exempt from the provisions
2271	2271	3 of Section 3-55.
2272	2272	4 (29) Beginning January 1, 2010 and continuing through
2273	2273	5 December 31, 2029, materials, parts, equipment, components,
2274	2274	6 and furnishings incorporated into or upon an aircraft as part
2275	2275	7 of the modification, refurbishment, completion, replacement,
2276	2276	8 repair, or maintenance of the aircraft. This exemption
2277	2277	9 includes consumable supplies used in the modification,
2278	2278	10 refurbishment, completion, replacement, repair, and
2279	2279	11 maintenance of aircraft. However, until January 1, 2024, this
2280	2280	12 exemption excludes any materials, parts, equipment,
2281	2281	13 components, and consumable supplies used in the modification,
2282	2282	14 replacement, repair, and maintenance of aircraft engines or
2283	2283	15 power plants, whether such engines or power plants are
2284	2284	16 installed or uninstalled upon any such aircraft. "Consumable
2285	2285	17 supplies" include, but are not limited to, adhesive, tape,
2286	2286	18 sandpaper, general purpose lubricants, cleaning solution,
2287	2287	19 latex gloves, and protective films.
2288	2288	20 Beginning January 1, 2010 and continuing through December
2289	2289	21 31, 2023, this exemption applies only to the transfer of
2290	2290	22 qualifying tangible personal property incident to the
2291	2291	23 modification, refurbishment, completion, replacement, repair,
2292	2292	24 or maintenance of an aircraft by persons who (i) hold an Air
2293	2293	25 Agency Certificate and are empowered to operate an approved
2294	2294	26 repair station by the Federal Aviation Administration, (ii)
2295	2295
2296	2296
2297	2297
2298	2298
2299	2299
2300	2300	SB2028 - 63 - LRB104 10539 HLH 20615 b
2301	2301
2302	2302
2303	2303	SB2028- 64 -LRB104 10539 HLH 20615 b SB2028 - 64 - LRB104 10539 HLH 20615 b
2304	2304	SB2028 - 64 - LRB104 10539 HLH 20615 b
2305	2305	1 have a Class IV Rating, and (iii) conduct operations in
2306	2306	2 accordance with Part 145 of the Federal Aviation Regulations.
2307	2307	3 The exemption does not include aircraft operated by a
2308	2308	4 commercial air carrier providing scheduled passenger air
2309	2309	5 service pursuant to authority issued under Part 121 or Part
2310	2310	6 129 of the Federal Aviation Regulations. From January 1, 2024
2311	2311	7 through December 31, 2029, this exemption applies only to the
2312	2312	8 transfer of qualifying tangible personal property incident to:
2313	2313	9 (A) the modification, refurbishment, completion, repair,
2314	2314	10 replacement, or maintenance of an aircraft by persons who (i)
2315	2315	11 hold an Air Agency Certificate and are empowered to operate an
2316	2316	12 approved repair station by the Federal Aviation
2317	2317	13 Administration, (ii) have a Class IV Rating, and (iii) conduct
2318	2318	14 operations in accordance with Part 145 of the Federal Aviation
2319	2319	15 Regulations; and (B) the modification, replacement, repair,
2320	2320	16 and maintenance of aircraft engines or power plants without
2321	2321	17 regard to whether or not those persons meet the qualifications
2322	2322	18 of item (A).
2323	2323	19 The changes made to this paragraph (29) by Public Act
2324	2324	20 98-534 are declarative of existing law. It is the intent of the
2325	2325	21 General Assembly that the exemption under this paragraph (29)
2326	2326	22 applies continuously from January 1, 2010 through December 31,
2327	2327	23 2024; however, no claim for credit or refund is allowed for
2328	2328	24 taxes paid as a result of the disallowance of this exemption on
2329	2329	25 or after January 1, 2015 and prior to February 5, 2020 (the
2330	2330	26 effective date of Public Act 101-629).
2331	2331
2332	2332
2333	2333
2334	2334
2335	2335
2336	2336	SB2028 - 64 - LRB104 10539 HLH 20615 b
2337	2337
2338	2338
2339	2339	SB2028- 65 -LRB104 10539 HLH 20615 b SB2028 - 65 - LRB104 10539 HLH 20615 b
2340	2340	SB2028 - 65 - LRB104 10539 HLH 20615 b
2341	2341	1 (30) Beginning January 1, 2017 and through December 31,
2342	2342	2 2026, menstrual pads, tampons, and menstrual cups.
2343	2343	3 (31) Tangible personal property transferred to a purchaser
2344	2344	4 who is exempt from tax by operation of federal law. This
2345	2345	5 paragraph is exempt from the provisions of Section 3-55.
2346	2346	6 (32) Qualified tangible personal property used in the
2347	2347	7 construction or operation of a data center that has been
2348	2348	8 granted a certificate of exemption by the Department of
2349	2349	9 Commerce and Economic Opportunity, whether that tangible
2350	2350	10 personal property is purchased by the owner, operator, or
2351	2351	11 tenant of the data center or by a contractor or subcontractor
2352	2352	12 of the owner, operator, or tenant. Data centers that would
2353	2353	13 have qualified for a certificate of exemption prior to January
2354	2354	14 1, 2020 had Public Act 101-31 been in effect, may apply for and
2355	2355	15 obtain an exemption for subsequent purchases of computer
2356	2356	16 equipment or enabling software purchased or leased to upgrade,
2357	2357	17 supplement, or replace computer equipment or enabling software
2358	2358	18 purchased or leased in the original investment that would have
2359	2359	19 qualified.
2360	2360	20 The Department of Commerce and Economic Opportunity shall
2361	2361	21 grant a certificate of exemption under this item (32) to
2362	2362	22 qualified data centers as defined by Section 605-1025 of the
2363	2363	23 Department of Commerce and Economic Opportunity Law of the
2364	2364	24 Civil Administrative Code of Illinois.
2365	2365	25 For the purposes of this item (32):
2366	2366	26 "Data center" means a building or a series of
2367	2367
2368	2368
2369	2369
2370	2370
2371	2371
2372	2372	SB2028 - 65 - LRB104 10539 HLH 20615 b
2373	2373
2374	2374
2375	2375	SB2028- 66 -LRB104 10539 HLH 20615 b SB2028 - 66 - LRB104 10539 HLH 20615 b
2376	2376	SB2028 - 66 - LRB104 10539 HLH 20615 b
2377	2377	1 buildings rehabilitated or constructed to house working
2378	2378	2 servers in one physical location or multiple sites within
2379	2379	3 the State of Illinois.
2380	2380	4 "Qualified tangible personal property" means:
2381	2381	5 electrical systems and equipment; climate control and
2382	2382	6 chilling equipment and systems; mechanical systems and
2383	2383	7 equipment; monitoring and secure systems; emergency
2384	2384	8 generators; hardware; computers; servers; data storage
2385	2385	9 devices; network connectivity equipment; racks; cabinets;
2386	2386	10 telecommunications cabling infrastructure; raised floor
2387	2387	11 systems; peripheral components or systems; software;
2388	2388	12 mechanical, electrical, or plumbing systems; battery
2389	2389	13 systems; cooling systems and towers; temperature control
2390	2390	14 systems; other cabling; and other data center
2391	2391	15 infrastructure equipment and systems necessary to operate
2392	2392	16 qualified tangible personal property, including fixtures;
2393	2393	17 and component parts of any of the foregoing, including
2394	2394	18 installation, maintenance, repair, refurbishment, and
2395	2395	19 replacement of qualified tangible personal property to
2396	2396	20 generate, transform, transmit, distribute, or manage
2397	2397	21 electricity necessary to operate qualified tangible
2398	2398	22 personal property; and all other tangible personal
2399	2399	23 property that is essential to the operations of a computer
2400	2400	24 data center. The term "qualified tangible personal
2401	2401	25 property" also includes building materials physically
2402	2402	26 incorporated into the qualifying data center. To document
2403	2403
2404	2404
2405	2405
2406	2406
2407	2407
2408	2408	SB2028 - 66 - LRB104 10539 HLH 20615 b
2409	2409
2410	2410
2411	2411	SB2028- 67 -LRB104 10539 HLH 20615 b SB2028 - 67 - LRB104 10539 HLH 20615 b
2412	2412	SB2028 - 67 - LRB104 10539 HLH 20615 b
2413	2413	1 the exemption allowed under this Section, the retailer
2414	2414	2 must obtain from the purchaser a copy of the certificate
2415	2415	3 of eligibility issued by the Department of Commerce and
2416	2416	4 Economic Opportunity.
2417	2417	5 This item (32) is exempt from the provisions of Section
2418	2418	6 3-55.
2419	2419	7 (33) Beginning July 1, 2022, breast pumps, breast pump
2420	2420	8 collection and storage supplies, and breast pump kits. This
2421	2421	9 item (33) is exempt from the provisions of Section 3-55. As
2422	2422	10 used in this item (33):
2423	2423	11 "Breast pump" means an electrically controlled or
2424	2424	12 manually controlled pump device designed or marketed to be
2425	2425	13 used to express milk from a human breast during lactation,
2426	2426	14 including the pump device and any battery, AC adapter, or
2427	2427	15 other power supply unit that is used to power the pump
2428	2428	16 device and is packaged and sold with the pump device at the
2429	2429	17 time of sale.
2430	2430	18 "Breast pump collection and storage supplies" means
2431	2431	19 items of tangible personal property designed or marketed
2432	2432	20 to be used in conjunction with a breast pump to collect
2433	2433	21 milk expressed from a human breast and to store collected
2434	2434	22 milk until it is ready for consumption.
2435	2435	23 "Breast pump collection and storage supplies"
2436	2436	24 includes, but is not limited to: breast shields and breast
2437	2437	25 shield connectors; breast pump tubes and tubing adapters;
2438	2438	26 breast pump valves and membranes; backflow protectors and
2439	2439
2440	2440
2441	2441
2442	2442
2443	2443
2444	2444	SB2028 - 67 - LRB104 10539 HLH 20615 b
2445	2445
2446	2446
2447	2447	SB2028- 68 -LRB104 10539 HLH 20615 b SB2028 - 68 - LRB104 10539 HLH 20615 b
2448	2448	SB2028 - 68 - LRB104 10539 HLH 20615 b
2449	2449	1 backflow protector adaptors; bottles and bottle caps
2450	2450	2 specific to the operation of the breast pump; and breast
2451	2451	3 milk storage bags.
2452	2452	4 "Breast pump collection and storage supplies" does not
2453	2453	5 include: (1) bottles and bottle caps not specific to the
2454	2454	6 operation of the breast pump; (2) breast pump travel bags
2455	2455	7 and other similar carrying accessories, including ice
2456	2456	8 packs, labels, and other similar products; (3) breast pump
2457	2457	9 cleaning supplies; (4) nursing bras, bra pads, breast
2458	2458	10 shells, and other similar products; and (5) creams,
2459	2459	11 ointments, and other similar products that relieve
2460	2460	12 breastfeeding-related symptoms or conditions of the
2461	2461	13 breasts or nipples, unless sold as part of a breast pump
2462	2462	14 kit that is pre-packaged by the breast pump manufacturer
2463	2463	15 or distributor.
2464	2464	16 "Breast pump kit" means a kit that: (1) contains no
2465	2465	17 more than a breast pump, breast pump collection and
2466	2466	18 storage supplies, a rechargeable battery for operating the
2467	2467	19 breast pump, a breastmilk cooler, bottle stands, ice
2468	2468	20 packs, and a breast pump carrying case; and (2) is
2469	2469	21 pre-packaged as a breast pump kit by the breast pump
2470	2470	22 manufacturer or distributor.
2471	2471	23 (34) Tangible personal property sold by or on behalf of
2472	2472	24 the State Treasurer pursuant to the Revised Uniform Unclaimed
2473	2473	25 Property Act. This item (34) is exempt from the provisions of
2474	2474	26 Section 3-55.
2475	2475
2476	2476
2477	2477
2478	2478
2479	2479
2480	2480	SB2028 - 68 - LRB104 10539 HLH 20615 b
2481	2481
2482	2482
2483	2483	SB2028- 69 -LRB104 10539 HLH 20615 b SB2028 - 69 - LRB104 10539 HLH 20615 b
2484	2484	SB2028 - 69 - LRB104 10539 HLH 20615 b
2485	2485	1 (35) Beginning on January 1, 2024, tangible personal
2486	2486	2 property purchased by an active duty member of the armed
2487	2487	3 forces of the United States who presents valid military
2488	2488	4 identification and purchases the property using a form of
2489	2489	5 payment where the federal government is the payor. The member
2490	2490	6 of the armed forces must complete, at the point of sale, a form
2491	2491	7 prescribed by the Department of Revenue documenting that the
2492	2492	8 transaction is eligible for the exemption under this
2493	2493	9 paragraph. Retailers must keep the form as documentation of
2494	2494	10 the exemption in their records for a period of not less than 6
2495	2495	11 years. "Armed forces of the United States" means the United
2496	2496	12 States Army, Navy, Air Force, Space Force, Marine Corps, or
2497	2497	13 Coast Guard. This paragraph is exempt from the provisions of
2498	2498	14 Section 3-55.
2499	2499	15 (36) Beginning July 1, 2024, home-delivered meals provided
2500	2500	16 to Medicare or Medicaid recipients when payment is made by an
2501	2501	17 intermediary, such as a Medicare Administrative Contractor, a
2502	2502	18 Managed Care Organization, or a Medicare Advantage
2503	2503	19 Organization, pursuant to a government contract. This
2504	2504	20 paragraph (36) (35) is exempt from the provisions of Section
2505	2505	21 3-55.
2506	2506	22 (37) (36) Beginning on January 1, 2026, as further defined
2507	2507	23 in Section 3-10, food prepared for immediate consumption and
2508	2508	24 transferred incident to a sale of service subject to this Act
2509	2509	25 or the Service Use Tax Act by an entity licensed under the
2510	2510	26 Hospital Licensing Act, the Nursing Home Care Act, the
2511	2511
2512	2512
2513	2513
2514	2514
2515	2515
2516	2516	SB2028 - 69 - LRB104 10539 HLH 20615 b
2517	2517
2518	2518
2519	2519	SB2028- 70 -LRB104 10539 HLH 20615 b SB2028 - 70 - LRB104 10539 HLH 20615 b
2520	2520	SB2028 - 70 - LRB104 10539 HLH 20615 b
2521	2521	1 Assisted Living and Shared Housing Act, the ID/DD Community
2522	2522	2 Care Act, the MC/DD Act, the Specialized Mental Health
2523	2523	3 Rehabilitation Act of 2013, or the Child Care Act of 1969 or by
2524	2524	4 an entity that holds a permit issued pursuant to the Life Care
2525	2525	5 Facilities Act. This item (37) (36) is exempt from the
2526	2526	6 provisions of Section 3-55.
2527	2527	7 (38) (37) Beginning on January 1, 2026, as further defined
2528	2528	8 in Section 3-10, food for human consumption that is to be
2529	2529	9 consumed off the premises where it is sold (other than
2530	2530	10 alcoholic beverages, food consisting of or infused with adult
2531	2531	11 use cannabis, soft drinks, candy, and food that has been
2532	2532	12 prepared for immediate consumption). This item (38) (37) is
2533	2533	13 exempt from the provisions of Section 3-55.
2534	2534	14 (39) (36) The lease of the following tangible personal
2535	2535	15 property:
2536	2536	16 (1) computer software transferred subject to a license
2537	2537	17 that meets the following requirements:
2538	2538	18 (A) it is evidenced by a written agreement signed
2539	2539	19 by the licensor and the customer;
2540	2540	20 (i) an electronic agreement in which the
2541	2541	21 customer accepts the license by means of an
2542	2542	22 electronic signature that is verifiable and can be
2543	2543	23 authenticated and is attached to or made part of
2544	2544	24 the license will comply with this requirement;
2545	2545	25 (ii) a license agreement in which the customer
2546	2546	26 electronically accepts the terms by clicking "I
2547	2547
2548	2548
2549	2549
2550	2550
2551	2551
2552	2552	SB2028 - 70 - LRB104 10539 HLH 20615 b
2553	2553
2554	2554
2555	2555	SB2028- 71 -LRB104 10539 HLH 20615 b SB2028 - 71 - LRB104 10539 HLH 20615 b
2556	2556	SB2028 - 71 - LRB104 10539 HLH 20615 b
2557	2557	1 agree" does not comply with this requirement;
2558	2558	2 (B) it restricts the customer's duplication and
2559	2559	3 use of the software;
2560	2560	4 (C) it prohibits the customer from licensing,
2561	2561	5 sublicensing, or transferring the software to a third
2562	2562	6 party (except to a related party) without the
2563	2563	7 permission and continued control of the licensor;
2564	2564	8 (D) the licensor has a policy of providing another
2565	2565	9 copy at minimal or no charge if the customer loses or
2566	2566	10 damages the software, or of permitting the licensee to
2567	2567	11 make and keep an archival copy, and such policy is
2568	2568	12 either stated in the license agreement, supported by
2569	2569	13 the licensor's books and records, or supported by a
2570	2570	14 notarized statement made under penalties of perjury by
2571	2571	15 the licensor; and
2572	2572	16 (E) the customer must destroy or return all copies
2573	2573	17 of the software to the licensor at the end of the
2574	2574	18 license period; this provision is deemed to be met, in
2575	2575	19 the case of a perpetual license, without being set
2576	2576	20 forth in the license agreement; and
2577	2577	21 (2) property that is subject to a tax on lease
2578	2578	22 receipts imposed by a home rule unit of local government
2579	2579	23 if the ordinance imposing that tax was adopted prior to
2580	2580	24 January 1, 2023.
2581	2581	25 (40) Equipment and materials placed in service on or after
2582	2582	26 January 1, 2026 that are incorporated into or used in the
2583	2583
2584	2584
2585	2585
2586	2586
2587	2587
2588	2588	SB2028 - 71 - LRB104 10539 HLH 20615 b
2589	2589
2590	2590
2591	2591	SB2028- 72 -LRB104 10539 HLH 20615 b SB2028 - 72 - LRB104 10539 HLH 20615 b
2592	2592	SB2028 - 72 - LRB104 10539 HLH 20615 b
2593	2593	1 business of providing broadband services, including all
2594	2594	2 equipment and materials machinery, software, or other tangible
2595	2595	3 personal property that is used in whole or in part in
2596	2596	4 producing, broadcasting, distributing, sending, receiving,
2597	2597	5 storing, transmitting, retransmitting, amplifying, switching,
2598	2598	6 or routing broadband services, including the monitoring,
2599	2599	7 testing, maintaining, enabling, or facilitating of such
2600	2600	8 equipment, machinery, software, or other infrastructure. That
2601	2601	9 property includes, but is not limited to, wires, cables
2602	2602	10 including fiber optic cables, antennas, poles, switches,
2603	2603	11 routers, amplifiers, rectifiers, repeaters, receivers,
2604	2604	12 multiplexers, duplexers, transmitters, power equipment, backup
2605	2605	13 power equipment, diagnostic equipment, storage devices,
2606	2606	14 modems, and other general central office equipment, such as
2607	2607	15 channel cards, frames, and cabinets. As used in this item
2608	2608	16 (40), "broadband" and "broadband service" have the meanings
2609	2609	17 given to those terms under Section 10 of the Broadband
2610	2610	18 Advisory Council Act. This item (40) is exempt from the
2611	2611	19 provisions of Section 3-55.
2612	2612	20 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
2613	2613	21 Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2614	2614	22 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
2615	2615	23 Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
2616	2616	24 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
2617	2617	25 103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
2618	2618	26 7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995,
2619	2619
2620	2620
2621	2621
2622	2622
2623	2623
2624	2624	SB2028 - 72 - LRB104 10539 HLH 20615 b
2625	2625
2626	2626
2627	2627	SB2028- 73 -LRB104 10539 HLH 20615 b SB2028 - 73 - LRB104 10539 HLH 20615 b
2628	2628	SB2028 - 73 - LRB104 10539 HLH 20615 b
2629	2629	1 eff. 8-9-24; revised 11-26-24.)
2630	2630	2 Section 20. The Retailers' Occupation Tax Act is amended
2631	2631	3 by changing Section 2-5 as follows:
2632	2632	4 (35 ILCS 120/2-5)
2633	2633	5 Sec. 2-5. Exemptions. Gross receipts from proceeds from
2634	2634	6 the sale, which, on and after January 1, 2025, includes the
2635	2635	7 lease, of the following tangible personal property are exempt
2636	2636	8 from the tax imposed by this Act:
2637	2637	9 (1) Farm chemicals.
2638	2638	10 (2) Farm machinery and equipment, both new and used,
2639	2639	11 including that manufactured on special order, certified by
2640	2640	12 the purchaser to be used primarily for production
2641	2641	13 agriculture or State or federal agricultural programs,
2642	2642	14 including individual replacement parts for the machinery
2643	2643	15 and equipment, including machinery and equipment purchased
2644	2644	16 for lease, and including implements of husbandry defined
2645	2645	17 in Section 1-130 of the Illinois Vehicle Code, farm
2646	2646	18 machinery and agricultural chemical and fertilizer
2647	2647	19 spreaders, and nurse wagons required to be registered
2648	2648	20 under Section 3-809 of the Illinois Vehicle Code, but
2649	2649	21 excluding other motor vehicles required to be registered
2650	2650	22 under the Illinois Vehicle Code. Horticultural polyhouses
2651	2651	23 or hoop houses used for propagating, growing, or
2652	2652	24 overwintering plants shall be considered farm machinery
2653	2653
2654	2654
2655	2655
2656	2656
2657	2657
2658	2658	SB2028 - 73 - LRB104 10539 HLH 20615 b
2659	2659
2660	2660
2661	2661	SB2028- 74 -LRB104 10539 HLH 20615 b SB2028 - 74 - LRB104 10539 HLH 20615 b
2662	2662	SB2028 - 74 - LRB104 10539 HLH 20615 b
2663	2663	1 and equipment under this item (2). Agricultural chemical
2664	2664	2 tender tanks and dry boxes shall include units sold
2665	2665	3 separately from a motor vehicle required to be licensed
2666	2666	4 and units sold mounted on a motor vehicle required to be
2667	2667	5 licensed, if the selling price of the tender is separately
2668	2668	6 stated.
2669	2669	7 Farm machinery and equipment shall include precision
2670	2670	8 farming equipment that is installed or purchased to be
2671	2671	9 installed on farm machinery and equipment including, but
2672	2672	10 not limited to, tractors, harvesters, sprayers, planters,
2673	2673	11 seeders, or spreaders. Precision farming equipment
2674	2674	12 includes, but is not limited to, soil testing sensors,
2675	2675	13 computers, monitors, software, global positioning and
2676	2676	14 mapping systems, and other such equipment.
2677	2677	15 Farm machinery and equipment also includes computers,
2678	2678	16 sensors, software, and related equipment used primarily in
2679	2679	17 the computer-assisted operation of production agriculture
2680	2680	18 facilities, equipment, and activities such as, but not
2681	2681	19 limited to, the collection, monitoring, and correlation of
2682	2682	20 animal and crop data for the purpose of formulating animal
2683	2683	21 diets and agricultural chemicals.
2684	2684	22 Beginning on January 1, 2024, farm machinery and
2685	2685	23 equipment also includes electrical power generation
2686	2686	24 equipment used primarily for production agriculture.
2687	2687	25 This item (2) is exempt from the provisions of Section
2688	2688	26 2-70.
2689	2689
2690	2690
2691	2691
2692	2692
2693	2693
2694	2694	SB2028 - 74 - LRB104 10539 HLH 20615 b
2695	2695
2696	2696
2697	2697	SB2028- 75 -LRB104 10539 HLH 20615 b SB2028 - 75 - LRB104 10539 HLH 20615 b
2698	2698	SB2028 - 75 - LRB104 10539 HLH 20615 b
2699	2699	1 (3) Until July 1, 2003, distillation machinery and
2700	2700	2 equipment, sold as a unit or kit, assembled or installed
2701	2701	3 by the retailer, certified by the user to be used only for
2702	2702	4 the production of ethyl alcohol that will be used for
2703	2703	5 consumption as motor fuel or as a component of motor fuel
2704	2704	6 for the personal use of the user, and not subject to sale
2705	2705	7 or resale.
2706	2706	8 (4) Until July 1, 2003 and beginning again September
2707	2707	9 1, 2004 through August 30, 2014, graphic arts machinery
2708	2708	10 and equipment, including repair and replacement parts,
2709	2709	11 both new and used, and including that manufactured on
2710	2710	12 special order or purchased for lease, certified by the
2711	2711	13 purchaser to be used primarily for graphic arts
2712	2712	14 production. Equipment includes chemicals or chemicals
2713	2713	15 acting as catalysts but only if the chemicals or chemicals
2714	2714	16 acting as catalysts effect a direct and immediate change
2715	2715	17 upon a graphic arts product. Beginning on July 1, 2017,
2716	2716	18 graphic arts machinery and equipment is included in the
2717	2717	19 manufacturing and assembling machinery and equipment
2718	2718	20 exemption under paragraph (14).
2719	2719	21 (5) A motor vehicle that is used for automobile
2720	2720	22 renting, as defined in the Automobile Renting Occupation
2721	2721	23 and Use Tax Act. This paragraph is exempt from the
2722	2722	24 provisions of Section 2-70.
2723	2723	25 (6) Personal property sold by a teacher-sponsored
2724	2724	26 student organization affiliated with an elementary or
2725	2725
2726	2726
2727	2727
2728	2728
2729	2729
2730	2730	SB2028 - 75 - LRB104 10539 HLH 20615 b
2731	2731
2732	2732
2733	2733	SB2028- 76 -LRB104 10539 HLH 20615 b SB2028 - 76 - LRB104 10539 HLH 20615 b
2734	2734	SB2028 - 76 - LRB104 10539 HLH 20615 b
2735	2735	1 secondary school located in Illinois.
2736	2736	2 (7) Until July 1, 2003, proceeds of that portion of
2737	2737	3 the selling price of a passenger car the sale of which is
2738	2738	4 subject to the Replacement Vehicle Tax.
2739	2739	5 (8) Personal property sold to an Illinois county fair
2740	2740	6 association for use in conducting, operating, or promoting
2741	2741	7 the county fair.
2742	2742	8 (9) Personal property sold to a not-for-profit arts or
2743	2743	9 cultural organization that establishes, by proof required
2744	2744	10 by the Department by rule, that it has received an
2745	2745	11 exemption under Section 501(c)(3) of the Internal Revenue
2746	2746	12 Code and that is organized and operated primarily for the
2747	2747	13 presentation or support of arts or cultural programming,
2748	2748	14 activities, or services. These organizations include, but
2749	2749	15 are not limited to, music and dramatic arts organizations
2750	2750	16 such as symphony orchestras and theatrical groups, arts
2751	2751	17 and cultural service organizations, local arts councils,
2752	2752	18 visual arts organizations, and media arts organizations.
2753	2753	19 On and after July 1, 2001 (the effective date of Public Act
2754	2754	20 92-35), however, an entity otherwise eligible for this
2755	2755	21 exemption shall not make tax-free purchases unless it has
2756	2756	22 an active identification number issued by the Department.
2757	2757	23 (10) Personal property sold by a corporation, society,
2758	2758	24 association, foundation, institution, or organization,
2759	2759	25 other than a limited liability company, that is organized
2760	2760	26 and operated as a not-for-profit service enterprise for
2761	2761
2762	2762
2763	2763
2764	2764
2765	2765
2766	2766	SB2028 - 76 - LRB104 10539 HLH 20615 b
2767	2767
2768	2768
2769	2769	SB2028- 77 -LRB104 10539 HLH 20615 b SB2028 - 77 - LRB104 10539 HLH 20615 b
2770	2770	SB2028 - 77 - LRB104 10539 HLH 20615 b
2771	2771	1 the benefit of persons 65 years of age or older if the
2772	2772	2 personal property was not purchased by the enterprise for
2773	2773	3 the purpose of resale by the enterprise.
2774	2774	4 (11) Except as otherwise provided in this Section,
2775	2775	5 personal property sold to a governmental body, to a
2776	2776	6 corporation, society, association, foundation, or
2777	2777	7 institution organized and operated exclusively for
2778	2778	8 charitable, religious, or educational purposes, or to a
2779	2779	9 not-for-profit corporation, society, association,
2780	2780	10 foundation, institution, or organization that has no
2781	2781	11 compensated officers or employees and that is organized
2782	2782	12 and operated primarily for the recreation of persons 55
2783	2783	13 years of age or older. A limited liability company may
2784	2784	14 qualify for the exemption under this paragraph only if the
2785	2785	15 limited liability company is organized and operated
2786	2786	16 exclusively for educational purposes. On and after July 1,
2787	2787	17 1987, however, no entity otherwise eligible for this
2788	2788	18 exemption shall make tax-free purchases unless it has an
2789	2789	19 active identification number issued by the Department.
2790	2790	20 (12) (Blank).
2791	2791	21 (12-5) On and after July 1, 2003 and through June 30,
2792	2792	22 2004, motor vehicles of the second division with a gross
2793	2793	23 vehicle weight in excess of 8,000 pounds that are subject
2794	2794	24 to the commercial distribution fee imposed under Section
2795	2795	25 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
2796	2796	26 2004 and through June 30, 2005, the use in this State of
2797	2797
2798	2798
2799	2799
2800	2800
2801	2801
2802	2802	SB2028 - 77 - LRB104 10539 HLH 20615 b
2803	2803
2804	2804
2805	2805	SB2028- 78 -LRB104 10539 HLH 20615 b SB2028 - 78 - LRB104 10539 HLH 20615 b
2806	2806	SB2028 - 78 - LRB104 10539 HLH 20615 b
2807	2807	1 motor vehicles of the second division: (i) with a gross
2808	2808	2 vehicle weight rating in excess of 8,000 pounds; (ii) that
2809	2809	3 are subject to the commercial distribution fee imposed
2810	2810	4 under Section 3-815.1 of the Illinois Vehicle Code; and
2811	2811	5 (iii) that are primarily used for commercial purposes.
2812	2812	6 Through June 30, 2005, this exemption applies to repair
2813	2813	7 and replacement parts added after the initial purchase of
2814	2814	8 such a motor vehicle if that motor vehicle is used in a
2815	2815	9 manner that would qualify for the rolling stock exemption
2816	2816	10 otherwise provided for in this Act. For purposes of this
2817	2817	11 paragraph, "used for commercial purposes" means the
2818	2818	12 transportation of persons or property in furtherance of
2819	2819	13 any commercial or industrial enterprise whether for-hire
2820	2820	14 or not.
2821	2821	15 (13) Proceeds from sales to owners or lessors,
2822	2822	16 lessees, or shippers of tangible personal property that is
2823	2823	17 utilized by interstate carriers for hire for use as
2824	2824	18 rolling stock moving in interstate commerce and equipment
2825	2825	19 operated by a telecommunications provider, licensed as a
2826	2826	20 common carrier by the Federal Communications Commission,
2827	2827	21 which is permanently installed in or affixed to aircraft
2828	2828	22 moving in interstate commerce.
2829	2829	23 (14) Machinery and equipment that will be used by the
2830	2830	24 purchaser, or a lessee of the purchaser, primarily in the
2831	2831	25 process of manufacturing or assembling tangible personal
2832	2832	26 property for wholesale or retail sale or lease, whether
2833	2833
2834	2834
2835	2835
2836	2836
2837	2837
2838	2838	SB2028 - 78 - LRB104 10539 HLH 20615 b
2839	2839
2840	2840
2841	2841	SB2028- 79 -LRB104 10539 HLH 20615 b SB2028 - 79 - LRB104 10539 HLH 20615 b
2842	2842	SB2028 - 79 - LRB104 10539 HLH 20615 b
2843	2843	1 the sale or lease is made directly by the manufacturer or
2844	2844	2 by some other person, whether the materials used in the
2845	2845	3 process are owned by the manufacturer or some other
2846	2846	4 person, or whether the sale or lease is made apart from or
2847	2847	5 as an incident to the seller's engaging in the service
2848	2848	6 occupation of producing machines, tools, dies, jigs,
2849	2849	7 patterns, gauges, or other similar items of no commercial
2850	2850	8 value on special order for a particular purchaser. The
2851	2851	9 exemption provided by this paragraph (14) does not include
2852	2852	10 machinery and equipment used in (i) the generation of
2853	2853	11 electricity for wholesale or retail sale; (ii) the
2854	2854	12 generation or treatment of natural or artificial gas for
2855	2855	13 wholesale or retail sale that is delivered to customers
2856	2856	14 through pipes, pipelines, or mains; or (iii) the treatment
2857	2857	15 of water for wholesale or retail sale that is delivered to
2858	2858	16 customers through pipes, pipelines, or mains. The
2859	2859	17 provisions of Public Act 98-583 are declaratory of
2860	2860	18 existing law as to the meaning and scope of this
2861	2861	19 exemption. Beginning on July 1, 2017, the exemption
2862	2862	20 provided by this paragraph (14) includes, but is not
2863	2863	21 limited to, graphic arts machinery and equipment, as
2864	2864	22 defined in paragraph (4) of this Section.
2865	2865	23 (15) Proceeds of mandatory service charges separately
2866	2866	24 stated on customers' bills for purchase and consumption of
2867	2867	25 food and beverages, to the extent that the proceeds of the
2868	2868	26 service charge are in fact turned over as tips or as a
2869	2869
2870	2870
2871	2871
2872	2872
2873	2873
2874	2874	SB2028 - 79 - LRB104 10539 HLH 20615 b
2875	2875
2876	2876
2877	2877	SB2028- 80 -LRB104 10539 HLH 20615 b SB2028 - 80 - LRB104 10539 HLH 20615 b
2878	2878	SB2028 - 80 - LRB104 10539 HLH 20615 b
2879	2879	1 substitute for tips to the employees who participate
2880	2880	2 directly in preparing, serving, hosting or cleaning up the
2881	2881	3 food or beverage function with respect to which the
2882	2882	4 service charge is imposed.
2883	2883	5 (16) Tangible personal property sold to a purchaser if
2884	2884	6 the purchaser is exempt from use tax by operation of
2885	2885	7 federal law. This paragraph is exempt from the provisions
2886	2886	8 of Section 2-70.
2887	2887	9 (17) Tangible personal property sold to a common
2888	2888	10 carrier by rail or motor that receives the physical
2889	2889	11 possession of the property in Illinois and that transports
2890	2890	12 the property, or shares with another common carrier in the
2891	2891	13 transportation of the property, out of Illinois on a
2892	2892	14 standard uniform bill of lading showing the seller of the
2893	2893	15 property as the shipper or consignor of the property to a
2894	2894	16 destination outside Illinois, for use outside Illinois.
2895	2895	17 (18) Legal tender, currency, medallions, or gold or
2896	2896	18 silver coinage issued by the State of Illinois, the
2897	2897	19 government of the United States of America, or the
2898	2898	20 government of any foreign country, and bullion.
2899	2899	21 (19) Until July 1, 2003, oil field exploration,
2900	2900	22 drilling, and production equipment, including (i) rigs and
2901	2901	23 parts of rigs, rotary rigs, cable tool rigs, and workover
2902	2902	24 rigs, (ii) pipe and tubular goods, including casing and
2903	2903	25 drill strings, (iii) pumps and pump-jack units, (iv)
2904	2904	26 storage tanks and flow lines, (v) any individual
2905	2905
2906	2906
2907	2907
2908	2908
2909	2909
2910	2910	SB2028 - 80 - LRB104 10539 HLH 20615 b
2911	2911
2912	2912
2913	2913	SB2028- 81 -LRB104 10539 HLH 20615 b SB2028 - 81 - LRB104 10539 HLH 20615 b
2914	2914	SB2028 - 81 - LRB104 10539 HLH 20615 b
2915	2915	1 replacement part for oil field exploration, drilling, and
2916	2916	2 production equipment, and (vi) machinery and equipment
2917	2917	3 purchased for lease; but excluding motor vehicles required
2918	2918	4 to be registered under the Illinois Vehicle Code.
2919	2919	5 (20) Photoprocessing machinery and equipment,
2920	2920	6 including repair and replacement parts, both new and used,
2921	2921	7 including that manufactured on special order, certified by
2922	2922	8 the purchaser to be used primarily for photoprocessing,
2923	2923	9 and including photoprocessing machinery and equipment
2924	2924	10 purchased for lease.
2925	2925	11 (21) Until July 1, 2028, coal and aggregate
2926	2926	12 exploration, mining, off-highway hauling, processing,
2927	2927	13 maintenance, and reclamation equipment, including
2928	2928	14 replacement parts and equipment, and including equipment
2929	2929	15 purchased for lease, but excluding motor vehicles required
2930	2930	16 to be registered under the Illinois Vehicle Code. The
2931	2931	17 changes made to this Section by Public Act 97-767 apply on
2932	2932	18 and after July 1, 2003, but no claim for credit or refund
2933	2933	19 is allowed on or after August 16, 2013 (the effective date
2934	2934	20 of Public Act 98-456) for such taxes paid during the
2935	2935	21 period beginning July 1, 2003 and ending on August 16,
2936	2936	22 2013 (the effective date of Public Act 98-456).
2937	2937	23 (22) Until June 30, 2013, fuel and petroleum products
2938	2938	24 sold to or used by an air carrier, certified by the carrier
2939	2939	25 to be used for consumption, shipment, or storage in the
2940	2940	26 conduct of its business as an air common carrier, for a
2941	2941
2942	2942
2943	2943
2944	2944
2945	2945
2946	2946	SB2028 - 81 - LRB104 10539 HLH 20615 b
2947	2947
2948	2948
2949	2949	SB2028- 82 -LRB104 10539 HLH 20615 b SB2028 - 82 - LRB104 10539 HLH 20615 b
2950	2950	SB2028 - 82 - LRB104 10539 HLH 20615 b
2951	2951	1 flight destined for or returning from a location or
2952	2952	2 locations outside the United States without regard to
2953	2953	3 previous or subsequent domestic stopovers.
2954	2954	4 Beginning July 1, 2013, fuel and petroleum products
2955	2955	5 sold to or used by an air carrier, certified by the carrier
2956	2956	6 to be used for consumption, shipment, or storage in the
2957	2957	7 conduct of its business as an air common carrier, for a
2958	2958	8 flight that (i) is engaged in foreign trade or is engaged
2959	2959	9 in trade between the United States and any of its
2960	2960	10 possessions and (ii) transports at least one individual or
2961	2961	11 package for hire from the city of origination to the city
2962	2962	12 of final destination on the same aircraft, without regard
2963	2963	13 to a change in the flight number of that aircraft.
2964	2964	14 (23) A transaction in which the purchase order is
2965	2965	15 received by a florist who is located outside Illinois, but
2966	2966	16 who has a florist located in Illinois deliver the property
2967	2967	17 to the purchaser or the purchaser's donee in Illinois.
2968	2968	18 (24) Fuel consumed or used in the operation of ships,
2969	2969	19 barges, or vessels that are used primarily in or for the
2970	2970	20 transportation of property or the conveyance of persons
2971	2971	21 for hire on rivers bordering on this State if the fuel is
2972	2972	22 delivered by the seller to the purchaser's barge, ship, or
2973	2973	23 vessel while it is afloat upon that bordering river.
2974	2974	24 (25) Except as provided in item (25-5) of this
2975	2975	25 Section, a motor vehicle sold in this State to a
2976	2976	26 nonresident even though the motor vehicle is delivered to
2977	2977
2978	2978
2979	2979
2980	2980
2981	2981
2982	2982	SB2028 - 82 - LRB104 10539 HLH 20615 b
2983	2983
2984	2984
2985	2985	SB2028- 83 -LRB104 10539 HLH 20615 b SB2028 - 83 - LRB104 10539 HLH 20615 b
2986	2986	SB2028 - 83 - LRB104 10539 HLH 20615 b
2987	2987	1 the nonresident in this State, if the motor vehicle is not
2988	2988	2 to be titled in this State, and if a drive-away permit is
2989	2989	3 issued to the motor vehicle as provided in Section 3-603
2990	2990	4 of the Illinois Vehicle Code or if the nonresident
2991	2991	5 purchaser has vehicle registration plates to transfer to
2992	2992	6 the motor vehicle upon returning to his or her home state.
2993	2993	7 The issuance of the drive-away permit or having the
2994	2994	8 out-of-state registration plates to be transferred is
2995	2995	9 prima facie evidence that the motor vehicle will not be
2996	2996	10 titled in this State.
2997	2997	11 (25-5) The exemption under item (25) does not apply if
2998	2998	12 the state in which the motor vehicle will be titled does
2999	2999	13 not allow a reciprocal exemption for a motor vehicle sold
3000	3000	14 and delivered in that state to an Illinois resident but
3001	3001	15 titled in Illinois. The tax collected under this Act on
3002	3002	16 the sale of a motor vehicle in this State to a resident of
3003	3003	17 another state that does not allow a reciprocal exemption
3004	3004	18 shall be imposed at a rate equal to the state's rate of tax
3005	3005	19 on taxable property in the state in which the purchaser is
3006	3006	20 a resident, except that the tax shall not exceed the tax
3007	3007	21 that would otherwise be imposed under this Act. At the
3008	3008	22 time of the sale, the purchaser shall execute a statement,
3009	3009	23 signed under penalty of perjury, of his or her intent to
3010	3010	24 title the vehicle in the state in which the purchaser is a
3011	3011	25 resident within 30 days after the sale and of the fact of
3012	3012	26 the payment to the State of Illinois of tax in an amount
3013	3013
3014	3014
3015	3015
3016	3016
3017	3017
3018	3018	SB2028 - 83 - LRB104 10539 HLH 20615 b
3019	3019
3020	3020
3021	3021	SB2028- 84 -LRB104 10539 HLH 20615 b SB2028 - 84 - LRB104 10539 HLH 20615 b
3022	3022	SB2028 - 84 - LRB104 10539 HLH 20615 b
3023	3023	1 equivalent to the state's rate of tax on taxable property
3024	3024	2 in his or her state of residence and shall submit the
3025	3025	3 statement to the appropriate tax collection agency in his
3026	3026	4 or her state of residence. In addition, the retailer must
3027	3027	5 retain a signed copy of the statement in his or her
3028	3028	6 records. Nothing in this item shall be construed to
3029	3029	7 require the removal of the vehicle from this state
3030	3030	8 following the filing of an intent to title the vehicle in
3031	3031	9 the purchaser's state of residence if the purchaser titles
3032	3032	10 the vehicle in his or her state of residence within 30 days
3033	3033	11 after the date of sale. The tax collected under this Act in
3034	3034	12 accordance with this item (25-5) shall be proportionately
3035	3035	13 distributed as if the tax were collected at the 6.25%
3036	3036	14 general rate imposed under this Act.
3037	3037	15 (25-7) Beginning on July 1, 2007, no tax is imposed
3038	3038	16 under this Act on the sale of an aircraft, as defined in
3039	3039	17 Section 3 of the Illinois Aeronautics Act, if all of the
3040	3040	18 following conditions are met:
3041	3041	19 (1) the aircraft leaves this State within 15 days
3042	3042	20 after the later of either the issuance of the final
3043	3043	21 billing for the sale of the aircraft, or the
3044	3044	22 authorized approval for return to service, completion
3045	3045	23 of the maintenance record entry, and completion of the
3046	3046	24 test flight and ground test for inspection, as
3047	3047	25 required by 14 CFR 91.407;
3048	3048	26 (2) the aircraft is not based or registered in
3049	3049
3050	3050
3051	3051
3052	3052
3053	3053
3054	3054	SB2028 - 84 - LRB104 10539 HLH 20615 b
3055	3055
3056	3056
3057	3057	SB2028- 85 -LRB104 10539 HLH 20615 b SB2028 - 85 - LRB104 10539 HLH 20615 b
3058	3058	SB2028 - 85 - LRB104 10539 HLH 20615 b
3059	3059	1 this State after the sale of the aircraft; and
3060	3060	2 (3) the seller retains in his or her books and
3061	3061	3 records and provides to the Department a signed and
3062	3062	4 dated certification from the purchaser, on a form
3063	3063	5 prescribed by the Department, certifying that the
3064	3064	6 requirements of this item (25-7) are met. The
3065	3065	7 certificate must also include the name and address of
3066	3066	8 the purchaser, the address of the location where the
3067	3067	9 aircraft is to be titled or registered, the address of
3068	3068	10 the primary physical location of the aircraft, and
3069	3069	11 other information that the Department may reasonably
3070	3070	12 require.
3071	3071	13 For purposes of this item (25-7):
3072	3072	14 "Based in this State" means hangared, stored, or
3073	3073	15 otherwise used, excluding post-sale customizations as
3074	3074	16 defined in this Section, for 10 or more days in each
3075	3075	17 12-month period immediately following the date of the sale
3076	3076	18 of the aircraft.
3077	3077	19 "Registered in this State" means an aircraft
3078	3078	20 registered with the Department of Transportation,
3079	3079	21 Aeronautics Division, or titled or registered with the
3080	3080	22 Federal Aviation Administration to an address located in
3081	3081	23 this State.
3082	3082	24 This paragraph (25-7) is exempt from the provisions of
3083	3083	25 Section 2-70.
3084	3084	26 (26) Semen used for artificial insemination of
3085	3085
3086	3086
3087	3087
3088	3088
3089	3089
3090	3090	SB2028 - 85 - LRB104 10539 HLH 20615 b
3091	3091
3092	3092
3093	3093	SB2028- 86 -LRB104 10539 HLH 20615 b SB2028 - 86 - LRB104 10539 HLH 20615 b
3094	3094	SB2028 - 86 - LRB104 10539 HLH 20615 b
3095	3095	1 livestock for direct agricultural production.
3096	3096	2 (27) Horses, or interests in horses, registered with
3097	3097	3 and meeting the requirements of any of the Arabian Horse
3098	3098	4 Club Registry of America, Appaloosa Horse Club, American
3099	3099	5 Quarter Horse Association, United States Trotting
3100	3100	6 Association, or Jockey Club, as appropriate, used for
3101	3101	7 purposes of breeding or racing for prizes. This item (27)
3102	3102	8 is exempt from the provisions of Section 2-70, and the
3103	3103	9 exemption provided for under this item (27) applies for
3104	3104	10 all periods beginning May 30, 1995, but no claim for
3105	3105	11 credit or refund is allowed on or after January 1, 2008
3106	3106	12 (the effective date of Public Act 95-88) for such taxes
3107	3107	13 paid during the period beginning May 30, 2000 and ending
3108	3108	14 on January 1, 2008 (the effective date of Public Act
3109	3109	15 95-88).
3110	3110	16 (28) Computers and communications equipment utilized
3111	3111	17 for any hospital purpose and equipment used in the
3112	3112	18 diagnosis, analysis, or treatment of hospital patients
3113	3113	19 sold to a lessor who leases the equipment, under a lease of
3114	3114	20 one year or longer executed or in effect at the time of the
3115	3115	21 purchase, to a hospital that has been issued an active tax
3116	3116	22 exemption identification number by the Department under
3117	3117	23 Section 1g of this Act.
3118	3118	24 (29) Personal property sold to a lessor who leases the
3119	3119	25 property, under a lease of one year or longer executed or
3120	3120	26 in effect at the time of the purchase, to a governmental
3121	3121
3122	3122
3123	3123
3124	3124
3125	3125
3126	3126	SB2028 - 86 - LRB104 10539 HLH 20615 b
3127	3127
3128	3128
3129	3129	SB2028- 87 -LRB104 10539 HLH 20615 b SB2028 - 87 - LRB104 10539 HLH 20615 b
3130	3130	SB2028 - 87 - LRB104 10539 HLH 20615 b
3131	3131	1 body that has been issued an active tax exemption
3132	3132	2 identification number by the Department under Section 1g
3133	3133	3 of this Act.
3134	3134	4 (30) Beginning with taxable years ending on or after
3135	3135	5 December 31, 1995 and ending with taxable years ending on
3136	3136	6 or before December 31, 2004, personal property that is
3137	3137	7 donated for disaster relief to be used in a State or
3138	3138	8 federally declared disaster area in Illinois or bordering
3139	3139	9 Illinois by a manufacturer or retailer that is registered
3140	3140	10 in this State to a corporation, society, association,
3141	3141	11 foundation, or institution that has been issued a sales
3142	3142	12 tax exemption identification number by the Department that
3143	3143	13 assists victims of the disaster who reside within the
3144	3144	14 declared disaster area.
3145	3145	15 (31) Beginning with taxable years ending on or after
3146	3146	16 December 31, 1995 and ending with taxable years ending on
3147	3147	17 or before December 31, 2004, personal property that is
3148	3148	18 used in the performance of infrastructure repairs in this
3149	3149	19 State, including, but not limited to, municipal roads and
3150	3150	20 streets, access roads, bridges, sidewalks, waste disposal
3151	3151	21 systems, water and sewer line extensions, water
3152	3152	22 distribution and purification facilities, storm water
3153	3153	23 drainage and retention facilities, and sewage treatment
3154	3154	24 facilities, resulting from a State or federally declared
3155	3155	25 disaster in Illinois or bordering Illinois when such
3156	3156	26 repairs are initiated on facilities located in the
3157	3157
3158	3158
3159	3159
3160	3160
3161	3161
3162	3162	SB2028 - 87 - LRB104 10539 HLH 20615 b
3163	3163
3164	3164
3165	3165	SB2028- 88 -LRB104 10539 HLH 20615 b SB2028 - 88 - LRB104 10539 HLH 20615 b
3166	3166	SB2028 - 88 - LRB104 10539 HLH 20615 b
3167	3167	1 declared disaster area within 6 months after the disaster.
3168	3168	2 (32) Beginning July 1, 1999, game or game birds sold
3169	3169	3 at a "game breeding and hunting preserve area" as that
3170	3170	4 term is used in the Wildlife Code. This paragraph is
3171	3171	5 exempt from the provisions of Section 2-70.
3172	3172	6 (33) A motor vehicle, as that term is defined in
3173	3173	7 Section 1-146 of the Illinois Vehicle Code, that is
3174	3174	8 donated to a corporation, limited liability company,
3175	3175	9 society, association, foundation, or institution that is
3176	3176	10 determined by the Department to be organized and operated
3177	3177	11 exclusively for educational purposes. For purposes of this
3178	3178	12 exemption, "a corporation, limited liability company,
3179	3179	13 society, association, foundation, or institution organized
3180	3180	14 and operated exclusively for educational purposes" means
3181	3181	15 all tax-supported public schools, private schools that
3182	3182	16 offer systematic instruction in useful branches of
3183	3183	17 learning by methods common to public schools and that
3184	3184	18 compare favorably in their scope and intensity with the
3185	3185	19 course of study presented in tax-supported schools, and
3186	3186	20 vocational or technical schools or institutes organized
3187	3187	21 and operated exclusively to provide a course of study of
3188	3188	22 not less than 6 weeks duration and designed to prepare
3189	3189	23 individuals to follow a trade or to pursue a manual,
3190	3190	24 technical, mechanical, industrial, business, or commercial
3191	3191	25 occupation.
3192	3192	26 (34) Beginning January 1, 2000, personal property,
3193	3193
3194	3194
3195	3195
3196	3196
3197	3197
3198	3198	SB2028 - 88 - LRB104 10539 HLH 20615 b
3199	3199
3200	3200
3201	3201	SB2028- 89 -LRB104 10539 HLH 20615 b SB2028 - 89 - LRB104 10539 HLH 20615 b
3202	3202	SB2028 - 89 - LRB104 10539 HLH 20615 b
3203	3203	1 including food, purchased through fundraising events for
3204	3204	2 the benefit of a public or private elementary or secondary
3205	3205	3 school, a group of those schools, or one or more school
3206	3206	4 districts if the events are sponsored by an entity
3207	3207	5 recognized by the school district that consists primarily
3208	3208	6 of volunteers and includes parents and teachers of the
3209	3209	7 school children. This paragraph does not apply to
3210	3210	8 fundraising events (i) for the benefit of private home
3211	3211	9 instruction or (ii) for which the fundraising entity
3212	3212	10 purchases the personal property sold at the events from
3213	3213	11 another individual or entity that sold the property for
3214	3214	12 the purpose of resale by the fundraising entity and that
3215	3215	13 profits from the sale to the fundraising entity. This
3216	3216	14 paragraph is exempt from the provisions of Section 2-70.
3217	3217	15 (35) Beginning January 1, 2000 and through December
3218	3218	16 31, 2001, new or used automatic vending machines that
3219	3219	17 prepare and serve hot food and beverages, including
3220	3220	18 coffee, soup, and other items, and replacement parts for
3221	3221	19 these machines. Beginning January 1, 2002 and through June
3222	3222	20 30, 2003, machines and parts for machines used in
3223	3223	21 commercial, coin-operated amusement and vending business
3224	3224	22 if a use or occupation tax is paid on the gross receipts
3225	3225	23 derived from the use of the commercial, coin-operated
3226	3226	24 amusement and vending machines. This paragraph is exempt
3227	3227	25 from the provisions of Section 2-70.
3228	3228	26 (35-5) Beginning August 23, 2001 and through June 30,
3229	3229
3230	3230
3231	3231
3232	3232
3233	3233
3234	3234	SB2028 - 89 - LRB104 10539 HLH 20615 b
3235	3235
3236	3236
3237	3237	SB2028- 90 -LRB104 10539 HLH 20615 b SB2028 - 90 - LRB104 10539 HLH 20615 b
3238	3238	SB2028 - 90 - LRB104 10539 HLH 20615 b
3239	3239	1 2016, food for human consumption that is to be consumed
3240	3240	2 off the premises where it is sold (other than alcoholic
3241	3241	3 beverages, soft drinks, and food that has been prepared
3242	3242	4 for immediate consumption) and prescription and
3243	3243	5 nonprescription medicines, drugs, medical appliances, and
3244	3244	6 insulin, urine testing materials, syringes, and needles
3245	3245	7 used by diabetics, for human use, when purchased for use
3246	3246	8 by a person receiving medical assistance under Article V
3247	3247	9 of the Illinois Public Aid Code who resides in a licensed
3248	3248	10 long-term care facility, as defined in the Nursing Home
3249	3249	11 Care Act, or a licensed facility as defined in the ID/DD
3250	3250	12 Community Care Act, the MC/DD Act, or the Specialized
3251	3251	13 Mental Health Rehabilitation Act of 2013.
3252	3252	14 (36) Beginning August 2, 2001, computers and
3253	3253	15 communications equipment utilized for any hospital purpose
3254	3254	16 and equipment used in the diagnosis, analysis, or
3255	3255	17 treatment of hospital patients sold to a lessor who leases
3256	3256	18 the equipment, under a lease of one year or longer
3257	3257	19 executed or in effect at the time of the purchase, to a
3258	3258	20 hospital that has been issued an active tax exemption
3259	3259	21 identification number by the Department under Section 1g
3260	3260	22 of this Act. This paragraph is exempt from the provisions
3261	3261	23 of Section 2-70.
3262	3262	24 (37) Beginning August 2, 2001, personal property sold
3263	3263	25 to a lessor who leases the property, under a lease of one
3264	3264	26 year or longer executed or in effect at the time of the
3265	3265
3266	3266
3267	3267
3268	3268
3269	3269
3270	3270	SB2028 - 90 - LRB104 10539 HLH 20615 b
3271	3271
3272	3272
3273	3273	SB2028- 91 -LRB104 10539 HLH 20615 b SB2028 - 91 - LRB104 10539 HLH 20615 b
3274	3274	SB2028 - 91 - LRB104 10539 HLH 20615 b
3275	3275	1 purchase, to a governmental body that has been issued an
3276	3276	2 active tax exemption identification number by the
3277	3277	3 Department under Section 1g of this Act. This paragraph is
3278	3278	4 exempt from the provisions of Section 2-70.
3279	3279	5 (38) Beginning on January 1, 2002 and through June 30,
3280	3280	6 2016, tangible personal property purchased from an
3281	3281	7 Illinois retailer by a taxpayer engaged in centralized
3282	3282	8 purchasing activities in Illinois who will, upon receipt
3283	3283	9 of the property in Illinois, temporarily store the
3284	3284	10 property in Illinois (i) for the purpose of subsequently
3285	3285	11 transporting it outside this State for use or consumption
3286	3286	12 thereafter solely outside this State or (ii) for the
3287	3287	13 purpose of being processed, fabricated, or manufactured
3288	3288	14 into, attached to, or incorporated into other tangible
3289	3289	15 personal property to be transported outside this State and
3290	3290	16 thereafter used or consumed solely outside this State. The
3291	3291	17 Director of Revenue shall, pursuant to rules adopted in
3292	3292	18 accordance with the Illinois Administrative Procedure Act,
3293	3293	19 issue a permit to any taxpayer in good standing with the
3294	3294	20 Department who is eligible for the exemption under this
3295	3295	21 paragraph (38). The permit issued under this paragraph
3296	3296	22 (38) shall authorize the holder, to the extent and in the
3297	3297	23 manner specified in the rules adopted under this Act, to
3298	3298	24 purchase tangible personal property from a retailer exempt
3299	3299	25 from the taxes imposed by this Act. Taxpayers shall
3300	3300	26 maintain all necessary books and records to substantiate
3301	3301
3302	3302
3303	3303
3304	3304
3305	3305
3306	3306	SB2028 - 91 - LRB104 10539 HLH 20615 b
3307	3307
3308	3308
3309	3309	SB2028- 92 -LRB104 10539 HLH 20615 b SB2028 - 92 - LRB104 10539 HLH 20615 b
3310	3310	SB2028 - 92 - LRB104 10539 HLH 20615 b
3311	3311	1 the use and consumption of all such tangible personal
3312	3312	2 property outside of the State of Illinois.
3313	3313	3 (39) Beginning January 1, 2008, tangible personal
3314	3314	4 property used in the construction or maintenance of a
3315	3315	5 community water supply, as defined under Section 3.145 of
3316	3316	6 the Environmental Protection Act, that is operated by a
3317	3317	7 not-for-profit corporation that holds a valid water supply
3318	3318	8 permit issued under Title IV of the Environmental
3319	3319	9 Protection Act. This paragraph is exempt from the
3320	3320	10 provisions of Section 2-70.
3321	3321	11 (40) Beginning January 1, 2010 and continuing through
3322	3322	12 December 31, 2029, materials, parts, equipment,
3323	3323	13 components, and furnishings incorporated into or upon an
3324	3324	14 aircraft as part of the modification, refurbishment,
3325	3325	15 completion, replacement, repair, or maintenance of the
3326	3326	16 aircraft. This exemption includes consumable supplies used
3327	3327	17 in the modification, refurbishment, completion,
3328	3328	18 replacement, repair, and maintenance of aircraft. However,
3329	3329	19 until January 1, 2024, this exemption excludes any
3330	3330	20 materials, parts, equipment, components, and consumable
3331	3331	21 supplies used in the modification, replacement, repair,
3332	3332	22 and maintenance of aircraft engines or power plants,
3333	3333	23 whether such engines or power plants are installed or
3334	3334	24 uninstalled upon any such aircraft. "Consumable supplies"
3335	3335	25 include, but are not limited to, adhesive, tape,
3336	3336	26 sandpaper, general purpose lubricants, cleaning solution,
3337	3337
3338	3338
3339	3339
3340	3340
3341	3341
3342	3342	SB2028 - 92 - LRB104 10539 HLH 20615 b
3343	3343
3344	3344
3345	3345	SB2028- 93 -LRB104 10539 HLH 20615 b SB2028 - 93 - LRB104 10539 HLH 20615 b
3346	3346	SB2028 - 93 - LRB104 10539 HLH 20615 b
3347	3347	1 latex gloves, and protective films.
3348	3348	2 Beginning January 1, 2010 and continuing through
3349	3349	3 December 31, 2023, this exemption applies only to the sale
3350	3350	4 of qualifying tangible personal property to persons who
3351	3351	5 modify, refurbish, complete, replace, or maintain an
3352	3352	6 aircraft and who (i) hold an Air Agency Certificate and
3353	3353	7 are empowered to operate an approved repair station by the
3354	3354	8 Federal Aviation Administration, (ii) have a Class IV
3355	3355	9 Rating, and (iii) conduct operations in accordance with
3356	3356	10 Part 145 of the Federal Aviation Regulations. The
3357	3357	11 exemption does not include aircraft operated by a
3358	3358	12 commercial air carrier providing scheduled passenger air
3359	3359	13 service pursuant to authority issued under Part 121 or
3360	3360	14 Part 129 of the Federal Aviation Regulations. From January
3361	3361	15 1, 2024 through December 31, 2029, this exemption applies
3362	3362	16 only to the sale of qualifying tangible personal property
3363	3363	17 to: (A) persons who modify, refurbish, complete, repair,
3364	3364	18 replace, or maintain aircraft and who (i) hold an Air
3365	3365	19 Agency Certificate and are empowered to operate an
3366	3366	20 approved repair station by the Federal Aviation
3367	3367	21 Administration, (ii) have a Class IV Rating, and (iii)
3368	3368	22 conduct operations in accordance with Part 145 of the
3369	3369	23 Federal Aviation Regulations; and (B) persons who engage
3370	3370	24 in the modification, replacement, repair, and maintenance
3371	3371	25 of aircraft engines or power plants without regard to
3372	3372	26 whether or not those persons meet the qualifications of
3373	3373
3374	3374
3375	3375
3376	3376
3377	3377
3378	3378	SB2028 - 93 - LRB104 10539 HLH 20615 b
3379	3379
3380	3380
3381	3381	SB2028- 94 -LRB104 10539 HLH 20615 b SB2028 - 94 - LRB104 10539 HLH 20615 b
3382	3382	SB2028 - 94 - LRB104 10539 HLH 20615 b
3383	3383	1 item (A).
3384	3384	2 The changes made to this paragraph (40) by Public Act
3385	3385	3 98-534 are declarative of existing law. It is the intent
3386	3386	4 of the General Assembly that the exemption under this
3387	3387	5 paragraph (40) applies continuously from January 1, 2010
3388	3388	6 through December 31, 2024; however, no claim for credit or
3389	3389	7 refund is allowed for taxes paid as a result of the
3390	3390	8 disallowance of this exemption on or after January 1, 2015
3391	3391	9 and prior to February 5, 2020 (the effective date of
3392	3392	10 Public Act 101-629).
3393	3393	11 (41) Tangible personal property sold to a
3394	3394	12 public-facilities corporation, as described in Section
3395	3395	13 11-65-10 of the Illinois Municipal Code, for purposes of
3396	3396	14 constructing or furnishing a municipal convention hall,
3397	3397	15 but only if the legal title to the municipal convention
3398	3398	16 hall is transferred to the municipality without any
3399	3399	17 further consideration by or on behalf of the municipality
3400	3400	18 at the time of the completion of the municipal convention
3401	3401	19 hall or upon the retirement or redemption of any bonds or
3402	3402	20 other debt instruments issued by the public-facilities
3403	3403	21 corporation in connection with the development of the
3404	3404	22 municipal convention hall. This exemption includes
3405	3405	23 existing public-facilities corporations as provided in
3406	3406	24 Section 11-65-25 of the Illinois Municipal Code. This
3407	3407	25 paragraph is exempt from the provisions of Section 2-70.
3408	3408	26 (42) Beginning January 1, 2017 and through December
3409	3409
3410	3410
3411	3411
3412	3412
3413	3413
3414	3414	SB2028 - 94 - LRB104 10539 HLH 20615 b
3415	3415
3416	3416
3417	3417	SB2028- 95 -LRB104 10539 HLH 20615 b SB2028 - 95 - LRB104 10539 HLH 20615 b
3418	3418	SB2028 - 95 - LRB104 10539 HLH 20615 b
3419	3419	1 31, 2026, menstrual pads, tampons, and menstrual cups.
3420	3420	2 (43) Merchandise that is subject to the Rental
3421	3421	3 Purchase Agreement Occupation and Use Tax. The purchaser
3422	3422	4 must certify that the item is purchased to be rented
3423	3423	5 subject to a rental-purchase agreement, as defined in the
3424	3424	6 Rental-Purchase Agreement Act, and provide proof of
3425	3425	7 registration under the Rental Purchase Agreement
3426	3426	8 Occupation and Use Tax Act. This paragraph is exempt from
3427	3427	9 the provisions of Section 2-70.
3428	3428	10 (44) Qualified tangible personal property used in the
3429	3429	11 construction or operation of a data center that has been
3430	3430	12 granted a certificate of exemption by the Department of
3431	3431	13 Commerce and Economic Opportunity, whether that tangible
3432	3432	14 personal property is purchased by the owner, operator, or
3433	3433	15 tenant of the data center or by a contractor or
3434	3434	16 subcontractor of the owner, operator, or tenant. Data
3435	3435	17 centers that would have qualified for a certificate of
3436	3436	18 exemption prior to January 1, 2020 had Public Act 101-31
3437	3437	19 been in effect, may apply for and obtain an exemption for
3438	3438	20 subsequent purchases of computer equipment or enabling
3439	3439	21 software purchased or leased to upgrade, supplement, or
3440	3440	22 replace computer equipment or enabling software purchased
3441	3441	23 or leased in the original investment that would have
3442	3442	24 qualified.
3443	3443	25 The Department of Commerce and Economic Opportunity
3444	3444	26 shall grant a certificate of exemption under this item
3445	3445
3446	3446
3447	3447
3448	3448
3449	3449
3450	3450	SB2028 - 95 - LRB104 10539 HLH 20615 b
3451	3451
3452	3452
3453	3453	SB2028- 96 -LRB104 10539 HLH 20615 b SB2028 - 96 - LRB104 10539 HLH 20615 b
3454	3454	SB2028 - 96 - LRB104 10539 HLH 20615 b
3455	3455	1 (44) to qualified data centers as defined by Section
3456	3456	2 605-1025 of the Department of Commerce and Economic
3457	3457	3 Opportunity Law of the Civil Administrative Code of
3458	3458	4 Illinois.
3459	3459	5 For the purposes of this item (44):
3460	3460	6 "Data center" means a building or a series of
3461	3461	7 buildings rehabilitated or constructed to house
3462	3462	8 working servers in one physical location or multiple
3463	3463	9 sites within the State of Illinois.
3464	3464	10 "Qualified tangible personal property" means:
3465	3465	11 electrical systems and equipment; climate control and
3466	3466	12 chilling equipment and systems; mechanical systems and
3467	3467	13 equipment; monitoring and secure systems; emergency
3468	3468	14 generators; hardware; computers; servers; data storage
3469	3469	15 devices; network connectivity equipment; racks;
3470	3470	16 cabinets; telecommunications cabling infrastructure;
3471	3471	17 raised floor systems; peripheral components or
3472	3472	18 systems; software; mechanical, electrical, or plumbing
3473	3473	19 systems; battery systems; cooling systems and towers;
3474	3474	20 temperature control systems; other cabling; and other
3475	3475	21 data center infrastructure equipment and systems
3476	3476	22 necessary to operate qualified tangible personal
3477	3477	23 property, including fixtures; and component parts of
3478	3478	24 any of the foregoing, including installation,
3479	3479	25 maintenance, repair, refurbishment, and replacement of
3480	3480	26 qualified tangible personal property to generate,
3481	3481
3482	3482
3483	3483
3484	3484
3485	3485
3486	3486	SB2028 - 96 - LRB104 10539 HLH 20615 b
3487	3487
3488	3488
3489	3489	SB2028- 97 -LRB104 10539 HLH 20615 b SB2028 - 97 - LRB104 10539 HLH 20615 b
3490	3490	SB2028 - 97 - LRB104 10539 HLH 20615 b
3491	3491	1 transform, transmit, distribute, or manage electricity
3492	3492	2 necessary to operate qualified tangible personal
3493	3493	3 property; and all other tangible personal property
3494	3494	4 that is essential to the operations of a computer data
3495	3495	5 center. The term "qualified tangible personal
3496	3496	6 property" also includes building materials physically
3497	3497	7 incorporated into the qualifying data center. To
3498	3498	8 document the exemption allowed under this Section, the
3499	3499	9 retailer must obtain from the purchaser a copy of the
3500	3500	10 certificate of eligibility issued by the Department of
3501	3501	11 Commerce and Economic Opportunity.
3502	3502	12 This item (44) is exempt from the provisions of
3503	3503	13 Section 2-70.
3504	3504	14 (45) Beginning January 1, 2020 and through December
3505	3505	15 31, 2020, sales of tangible personal property made by a
3506	3506	16 marketplace seller over a marketplace for which tax is due
3507	3507	17 under this Act but for which use tax has been collected and
3508	3508	18 remitted to the Department by a marketplace facilitator
3509	3509	19 under Section 2d of the Use Tax Act are exempt from tax
3510	3510	20 under this Act. A marketplace seller claiming this
3511	3511	21 exemption shall maintain books and records demonstrating
3512	3512	22 that the use tax on such sales has been collected and
3513	3513	23 remitted by a marketplace facilitator. Marketplace sellers
3514	3514	24 that have properly remitted tax under this Act on such
3515	3515	25 sales may file a claim for credit as provided in Section 6
3516	3516	26 of this Act. No claim is allowed, however, for such taxes
3517	3517
3518	3518
3519	3519
3520	3520
3521	3521
3522	3522	SB2028 - 97 - LRB104 10539 HLH 20615 b
3523	3523
3524	3524
3525	3525	SB2028- 98 -LRB104 10539 HLH 20615 b SB2028 - 98 - LRB104 10539 HLH 20615 b
3526	3526	SB2028 - 98 - LRB104 10539 HLH 20615 b
3527	3527	1 for which a credit or refund has been issued to the
3528	3528	2 marketplace facilitator under the Use Tax Act, or for
3529	3529	3 which the marketplace facilitator has filed a claim for
3530	3530	4 credit or refund under the Use Tax Act.
3531	3531	5 (46) Beginning July 1, 2022, breast pumps, breast pump
3532	3532	6 collection and storage supplies, and breast pump kits.
3533	3533	7 This item (46) is exempt from the provisions of Section
3534	3534	8 2-70. As used in this item (46):
3535	3535	9 "Breast pump" means an electrically controlled or
3536	3536	10 manually controlled pump device designed or marketed to be
3537	3537	11 used to express milk from a human breast during lactation,
3538	3538	12 including the pump device and any battery, AC adapter, or
3539	3539	13 other power supply unit that is used to power the pump
3540	3540	14 device and is packaged and sold with the pump device at the
3541	3541	15 time of sale.
3542	3542	16 "Breast pump collection and storage supplies" means
3543	3543	17 items of tangible personal property designed or marketed
3544	3544	18 to be used in conjunction with a breast pump to collect
3545	3545	19 milk expressed from a human breast and to store collected
3546	3546	20 milk until it is ready for consumption.
3547	3547	21 "Breast pump collection and storage supplies"
3548	3548	22 includes, but is not limited to: breast shields and breast
3549	3549	23 shield connectors; breast pump tubes and tubing adapters;
3550	3550	24 breast pump valves and membranes; backflow protectors and
3551	3551	25 backflow protector adaptors; bottles and bottle caps
3552	3552	26 specific to the operation of the breast pump; and breast
3553	3553
3554	3554
3555	3555
3556	3556
3557	3557
3558	3558	SB2028 - 98 - LRB104 10539 HLH 20615 b
3559	3559
3560	3560
3561	3561	SB2028- 99 -LRB104 10539 HLH 20615 b SB2028 - 99 - LRB104 10539 HLH 20615 b
3562	3562	SB2028 - 99 - LRB104 10539 HLH 20615 b
3563	3563	1 milk storage bags.
3564	3564	2 "Breast pump collection and storage supplies" does not
3565	3565	3 include: (1) bottles and bottle caps not specific to the
3566	3566	4 operation of the breast pump; (2) breast pump travel bags
3567	3567	5 and other similar carrying accessories, including ice
3568	3568	6 packs, labels, and other similar products; (3) breast pump
3569	3569	7 cleaning supplies; (4) nursing bras, bra pads, breast
3570	3570	8 shells, and other similar products; and (5) creams,
3571	3571	9 ointments, and other similar products that relieve
3572	3572	10 breastfeeding-related symptoms or conditions of the
3573	3573	11 breasts or nipples, unless sold as part of a breast pump
3574	3574	12 kit that is pre-packaged by the breast pump manufacturer
3575	3575	13 or distributor.
3576	3576	14 "Breast pump kit" means a kit that: (1) contains no
3577	3577	15 more than a breast pump, breast pump collection and
3578	3578	16 storage supplies, a rechargeable battery for operating the
3579	3579	17 breast pump, a breastmilk cooler, bottle stands, ice
3580	3580	18 packs, and a breast pump carrying case; and (2) is
3581	3581	19 pre-packaged as a breast pump kit by the breast pump
3582	3582	20 manufacturer or distributor.
3583	3583	21 (47) Tangible personal property sold by or on behalf
3584	3584	22 of the State Treasurer pursuant to the Revised Uniform
3585	3585	23 Unclaimed Property Act. This item (47) is exempt from the
3586	3586	24 provisions of Section 2-70.
3587	3587	25 (48) Beginning on January 1, 2024, tangible personal
3588	3588	26 property purchased by an active duty member of the armed
3589	3589
3590	3590
3591	3591
3592	3592
3593	3593
3594	3594	SB2028 - 99 - LRB104 10539 HLH 20615 b
3595	3595
3596	3596
3597	3597	SB2028- 100 -LRB104 10539 HLH 20615 b SB2028 - 100 - LRB104 10539 HLH 20615 b
3598	3598	SB2028 - 100 - LRB104 10539 HLH 20615 b
3599	3599	1 forces of the United States who presents valid military
3600	3600	2 identification and purchases the property using a form of
3601	3601	3 payment where the federal government is the payor. The
3602	3602	4 member of the armed forces must complete, at the point of
3603	3603	5 sale, a form prescribed by the Department of Revenue
3604	3604	6 documenting that the transaction is eligible for the
3605	3605	7 exemption under this paragraph. Retailers must keep the
3606	3606	8 form as documentation of the exemption in their records
3607	3607	9 for a period of not less than 6 years. "Armed forces of the
3608	3608	10 United States" means the United States Army, Navy, Air
3609	3609	11 Force, Space Force, Marine Corps, or Coast Guard. This
3610	3610	12 paragraph is exempt from the provisions of Section 2-70.
3611	3611	13 (49) Beginning July 1, 2024, home-delivered meals
3612	3612	14 provided to Medicare or Medicaid recipients when payment
3613	3613	15 is made by an intermediary, such as a Medicare
3614	3614	16 Administrative Contractor, a Managed Care Organization, or
3615	3615	17 a Medicare Advantage Organization, pursuant to a
3616	3616	18 government contract. This paragraph (49) is exempt from
3617	3617	19 the provisions of Section 2-70.
3618	3618	20 (50) (49) Beginning on January 1, 2026, as further
3619	3619	21 defined in Section 2-10, food for human consumption that
3620	3620	22 is to be consumed off the premises where it is sold (other
3621	3621	23 than alcoholic beverages, food consisting of or infused
3622	3622	24 with adult use cannabis, soft drinks, candy, and food that
3623	3623	25 has been prepared for immediate consumption). This item
3624	3624	26 (50) (49) is exempt from the provisions of Section 2-70.
3625	3625
3626	3626
3627	3627
3628	3628
3629	3629
3630	3630	SB2028 - 100 - LRB104 10539 HLH 20615 b
3631	3631
3632	3632
3633	3633	SB2028- 101 -LRB104 10539 HLH 20615 b SB2028 - 101 - LRB104 10539 HLH 20615 b
3634	3634	SB2028 - 101 - LRB104 10539 HLH 20615 b
3635	3635	1 (51) (49) Gross receipts from the lease of the
3636	3636	2 following tangible personal property:
3637	3637	3 (1) computer software transferred subject to a
3638	3638	4 license that meets the following requirements:
3639	3639	5 (A) it is evidenced by a written agreement
3640	3640	6 signed by the licensor and the customer;
3641	3641	7 (i) an electronic agreement in which the
3642	3642	8 customer accepts the license by means of an
3643	3643	9 electronic signature that is verifiable and
3644	3644	10 can be authenticated and is attached to or
3645	3645	11 made part of the license will comply with this
3646	3646	12 requirement;
3647	3647	13 (ii) a license agreement in which the
3648	3648	14 customer electronically accepts the terms by
3649	3649	15 clicking "I agree" does not comply with this
3650	3650	16 requirement;
3651	3651	17 (B) it restricts the customer's duplication
3652	3652	18 and use of the software;
3653	3653	19 (C) it prohibits the customer from licensing,
3654	3654	20 sublicensing, or transferring the software to a
3655	3655	21 third party (except to a related party) without
3656	3656	22 the permission and continued control of the
3657	3657	23 licensor;
3658	3658	24 (D) the licensor has a policy of providing
3659	3659	25 another copy at minimal or no charge if the
3660	3660	26 customer loses or damages the software, or of
3661	3661
3662	3662
3663	3663
3664	3664
3665	3665
3666	3666	SB2028 - 101 - LRB104 10539 HLH 20615 b
3667	3667
3668	3668
3669	3669	SB2028- 102 -LRB104 10539 HLH 20615 b SB2028 - 102 - LRB104 10539 HLH 20615 b
3670	3670	SB2028 - 102 - LRB104 10539 HLH 20615 b
3671	3671	1 permitting the licensee to make and keep an
3672	3672	2 archival copy, and such policy is either stated in
3673	3673	3 the license agreement, supported by the licensor's
3674	3674	4 books and records, or supported by a notarized
3675	3675	5 statement made under penalties of perjury by the
3676	3676	6 licensor; and
3677	3677	7 (E) the customer must destroy or return all
3678	3678	8 copies of the software to the licensor at the end
3679	3679	9 of the license period; this provision is deemed to
3680	3680	10 be met, in the case of a perpetual license,
3681	3681	11 without being set forth in the license agreement;
3682	3682	12 and
3683	3683	13 (2) property that is subject to a tax on lease
3684	3684	14 receipts imposed by a home rule unit of local
3685	3685	15 government if the ordinance imposing that tax was
3686	3686	16 adopted prior to January 1, 2023.
3687	3687	17 (52) Equipment and materials placed in service on or
3688	3688	18 after January 1, 2026 that are incorporated into or used
3689	3689	19 in the business of providing broadband services, including
3690	3690	20 all equipment and materials machinery, software, or other
3691	3691	21 tangible personal property that is used in whole or in
3692	3692	22 part in producing, broadcasting, distributing, sending,
3693	3693	23 receiving, storing, transmitting, retransmitting,
3694	3694	24 amplifying, switching, or routing broadband services,
3695	3695	25 including the monitoring, testing, maintaining, enabling,
3696	3696	26 or facilitating of such equipment, machinery, software, or
3697	3697
3698	3698
3699	3699
3700	3700
3701	3701
3702	3702	SB2028 - 102 - LRB104 10539 HLH 20615 b
3703	3703
3704	3704
3705	3705	SB2028- 103 -LRB104 10539 HLH 20615 b SB2028 - 103 - LRB104 10539 HLH 20615 b
3706	3706	SB2028 - 103 - LRB104 10539 HLH 20615 b
3707	3707	1 other infrastructure. That property includes, but is not
3708	3708	2 limited to, wires, cables including fiber optic cables,
3709	3709	3 antennas, poles, switches, routers, amplifiers,
3710	3710	4 rectifiers, repeaters, receivers, multiplexers,
3711	3711	5 duplexers, transmitters, power equipment, backup power
3712	3712	6 equipment, diagnostic equipment, storage devices, modems,
3713	3713	7 and other general central office equipment, such as
3714	3714	8 channel cards, frames, and cabinets. As used in this item
3715	3715	9 (52), "broadband" and "broadband service" have the
3716	3716	10 meanings given to those terms under Section 10 of the
3717	3717	11 Broadband Advisory Council Act. This item (52) is exempt
3718	3718	12 from the provisions of Section 2-70.
3719	3719	13 (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
3720	3720	14 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
3721	3721	15 Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
3722	3722	16 5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
3723	3723	17 5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
3724	3724	18 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; 103-592,
3725	3725	19 eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff. 7-1-24;
3726	3726	20 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995, eff.
3727	3727	21 8-9-24; revised 11-26-24.)
3728	3728
3729	3729
3730	3730
3731	3731
3732	3732
3733	3733	SB2028 - 103 - LRB104 10539 HLH 20615 b