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91_SB0878enr
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1 AN ACT concerning taxation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 3. The Illinois Income Tax Act is amended by
5 changing Section 201 as follows:
6 (35 ILCS 5/201) (from Ch. 120, par. 2-201)
7 Sec. 201. Tax Imposed.
8 (a) In general. A tax measured by net income is hereby
9 imposed on every individual, corporation, trust and estate
10 for each taxable year ending after July 31, 1969 on the
11 privilege of earning or receiving income in or as a resident
12 of this State. Such tax shall be in addition to all other
13 occupation or privilege taxes imposed by this State or by any
14 municipal corporation or political subdivision thereof.
15 (b) Rates. The tax imposed by subsection (a) of this
16 Section shall be determined as follows:
17 (1) In the case of an individual, trust or estate,
18 for taxable years ending prior to July 1, 1989, an amount
19 equal to 2 1/2% of the taxpayer's net income for the
20 taxable year.
21 (2) In the case of an individual, trust or estate,
22 for taxable years beginning prior to July 1, 1989 and
23 ending after June 30, 1989, an amount equal to the sum of
24 (i) 2 1/2% of the taxpayer's net income for the period
25 prior to July 1, 1989, as calculated under Section 202.3,
26 and (ii) 3% of the taxpayer's net income for the period
27 after June 30, 1989, as calculated under Section 202.3.
28 (3) In the case of an individual, trust or estate,
29 for taxable years beginning after June 30, 1989, an
30 amount equal to 3% of the taxpayer's net income for the
31 taxable year.
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1 (4) (Blank).
2 (5) (Blank).
3 (6) In the case of a corporation, for taxable years
4 ending prior to July 1, 1989, an amount equal to 4% of
5 the taxpayer's net income for the taxable year.
6 (7) In the case of a corporation, for taxable years
7 beginning prior to July 1, 1989 and ending after June 30,
8 1989, an amount equal to the sum of (i) 4% of the
9 taxpayer's net income for the period prior to July 1,
10 1989, as calculated under Section 202.3, and (ii) 4.8% of
11 the taxpayer's net income for the period after June 30,
12 1989, as calculated under Section 202.3.
13 (8) In the case of a corporation, for taxable years
14 beginning after June 30, 1989, an amount equal to 4.8% of
15 the taxpayer's net income for the taxable year.
16 (c) Beginning on July 1, 1979 and thereafter, in
17 addition to such income tax, there is also hereby imposed the
18 Personal Property Tax Replacement Income Tax measured by net
19 income on every corporation (including Subchapter S
20 corporations), partnership and trust, for each taxable year
21 ending after June 30, 1979. Such taxes are imposed on the
22 privilege of earning or receiving income in or as a resident
23 of this State. The Personal Property Tax Replacement Income
24 Tax shall be in addition to the income tax imposed by
25 subsections (a) and (b) of this Section and in addition to
26 all other occupation or privilege taxes imposed by this State
27 or by any municipal corporation or political subdivision
28 thereof.
29 (d) Additional Personal Property Tax Replacement Income
30 Tax Rates. The personal property tax replacement income tax
31 imposed by this subsection and subsection (c) of this Section
32 in the case of a corporation, other than a Subchapter S
33 corporation, shall be an additional amount equal to 2.85% of
34 such taxpayer's net income for the taxable year, except that
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1 beginning on January 1, 1981, and thereafter, the rate of
2 2.85% specified in this subsection shall be reduced to 2.5%,
3 and in the case of a partnership, trust or a Subchapter S
4 corporation shall be an additional amount equal to 1.5% of
5 such taxpayer's net income for the taxable year.
6 (e) Investment credit. A taxpayer shall be allowed a
7 credit against the Personal Property Tax Replacement Income
8 Tax for investment in qualified property.
9 (1) A taxpayer shall be allowed a credit equal to
10 .5% of the basis of qualified property placed in service
11 during the taxable year, provided such property is placed
12 in service on or after July 1, 1984. There shall be
13 allowed an additional credit equal to .5% of the basis of
14 qualified property placed in service during the taxable
15 year, provided such property is placed in service on or
16 after July 1, 1986, and the taxpayer's base employment
17 within Illinois has increased by 1% or more over the
18 preceding year as determined by the taxpayer's employment
19 records filed with the Illinois Department of Employment
20 Security. Taxpayers who are new to Illinois shall be
21 deemed to have met the 1% growth in base employment for
22 the first year in which they file employment records with
23 the Illinois Department of Employment Security. The
24 provisions added to this Section by Public Act 85-1200
25 (and restored by Public Act 87-895) shall be construed as
26 declaratory of existing law and not as a new enactment.
27 If, in any year, the increase in base employment within
28 Illinois over the preceding year is less than 1%, the
29 additional credit shall be limited to that percentage
30 times a fraction, the numerator of which is .5% and the
31 denominator of which is 1%, but shall not exceed .5%.
32 The investment credit shall not be allowed to the extent
33 that it would reduce a taxpayer's liability in any tax
34 year below zero, nor may any credit for qualified
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1 property be allowed for any year other than the year in
2 which the property was placed in service in Illinois. For
3 tax years ending on or after December 31, 1987, and on or
4 before December 31, 1988, the credit shall be allowed for
5 the tax year in which the property is placed in service,
6 or, if the amount of the credit exceeds the tax liability
7 for that year, whether it exceeds the original liability
8 or the liability as later amended, such excess may be
9 carried forward and applied to the tax liability of the 5
10 taxable years following the excess credit years if the
11 taxpayer (i) makes investments which cause the creation
12 of a minimum of 2,000 full-time equivalent jobs in
13 Illinois, (ii) is located in an enterprise zone
14 established pursuant to the Illinois Enterprise Zone Act
15 and (iii) is certified by the Department of Commerce and
16 Community Affairs as complying with the requirements
17 specified in clause (i) and (ii) by July 1, 1986. The
18 Department of Commerce and Community Affairs shall notify
19 the Department of Revenue of all such certifications
20 immediately. For tax years ending after December 31,
21 1988, the credit shall be allowed for the tax year in
22 which the property is placed in service, or, if the
23 amount of the credit exceeds the tax liability for that
24 year, whether it exceeds the original liability or the
25 liability as later amended, such excess may be carried
26 forward and applied to the tax liability of the 5 taxable
27 years following the excess credit years. The credit shall
28 be applied to the earliest year for which there is a
29 liability. If there is credit from more than one tax year
30 that is available to offset a liability, earlier credit
31 shall be applied first.
32 (2) The term "qualified property" means property
33 which:
34 (A) is tangible, whether new or used,
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1 including buildings and structural components of
2 buildings and signs that are real property, but not
3 including land or improvements to real property that
4 are not a structural component of a building such as
5 landscaping, sewer lines, local access roads,
6 fencing, parking lots, and other appurtenances;
7 (B) is depreciable pursuant to Section 167 of
8 the Internal Revenue Code, except that "3-year
9 property" as defined in Section 168(c)(2)(A) of that
10 Code is not eligible for the credit provided by this
11 subsection (e);
12 (C) is acquired by purchase as defined in
13 Section 179(d) of the Internal Revenue Code;
14 (D) is used in Illinois by a taxpayer who is
15 primarily engaged in manufacturing, or in mining
16 coal or fluorite, or in retailing; and
17 (E) has not previously been used in Illinois
18 in such a manner and by such a person as would
19 qualify for the credit provided by this subsection
20 (e) or subsection (f).
21 (3) For purposes of this subsection (e),
22 "manufacturing" means the material staging and production
23 of tangible personal property by procedures commonly
24 regarded as manufacturing, processing, fabrication, or
25 assembling which changes some existing material into new
26 shapes, new qualities, or new combinations. For purposes
27 of this subsection (e) the term "mining" shall have the
28 same meaning as the term "mining" in Section 613(c) of
29 the Internal Revenue Code. For purposes of this
30 subsection (e), the term "retailing" means the sale of
31 tangible personal property or services rendered in
32 conjunction with the sale of tangible consumer goods or
33 commodities.
34 (4) The basis of qualified property shall be the
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1 basis used to compute the depreciation deduction for
2 federal income tax purposes.
3 (5) If the basis of the property for federal income
4 tax depreciation purposes is increased after it has been
5 placed in service in Illinois by the taxpayer, the amount
6 of such increase shall be deemed property placed in
7 service on the date of such increase in basis.
8 (6) The term "placed in service" shall have the
9 same meaning as under Section 46 of the Internal Revenue
10 Code.
11 (7) If during any taxable year, any property ceases
12 to be qualified property in the hands of the taxpayer
13 within 48 months after being placed in service, or the
14 situs of any qualified property is moved outside Illinois
15 within 48 months after being placed in service, the
16 Personal Property Tax Replacement Income Tax for such
17 taxable year shall be increased. Such increase shall be
18 determined by (i) recomputing the investment credit which
19 would have been allowed for the year in which credit for
20 such property was originally allowed by eliminating such
21 property from such computation and, (ii) subtracting such
22 recomputed credit from the amount of credit previously
23 allowed. For the purposes of this paragraph (7), a
24 reduction of the basis of qualified property resulting
25 from a redetermination of the purchase price shall be
26 deemed a disposition of qualified property to the extent
27 of such reduction.
28 (8) Unless the investment credit is extended by
29 law, the basis of qualified property shall not include
30 costs incurred after December 31, 2003, except for costs
31 incurred pursuant to a binding contract entered into on
32 or before December 31, 2003.
33 (9) Each taxable year, a partnership may elect to
34 pass through to its partners the credits to which the
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1 partnership is entitled under this subsection (e) for the
2 taxable year. A partner may use the credit allocated to
3 him or her under this paragraph only against the tax
4 imposed in subsections (c) and (d) of this Section. If
5 the partnership makes that election, those credits shall
6 be allocated among the partners in the partnership in
7 accordance with the rules set forth in Section 704(b) of
8 the Internal Revenue Code, and the rules promulgated
9 under that Section, and the allocated amount of the
10 credits shall be allowed to the partners for that taxable
11 year. The partnership shall make this election on its
12 Personal Property Tax Replacement Income Tax return for
13 that taxable year. The election to pass through the
14 credits shall be irrevocable.
15 (f) Investment credit; Enterprise Zone.
16 (1) A taxpayer shall be allowed a credit against
17 the tax imposed by subsections (a) and (b) of this
18 Section for investment in qualified property which is
19 placed in service in an Enterprise Zone created pursuant
20 to the Illinois Enterprise Zone Act. For partners, and
21 for shareholders of Subchapter S corporations, and owners
22 of limited liability companies, if the liability company
23 is treated as a partnership for purposes of federal and
24 State income taxation, there shall be allowed a credit
25 under this subsection (f) to be determined in accordance
26 with the determination of income and distributive share
27 of income under Sections 702 and 704 and Subchapter S of
28 the Internal Revenue Code. The credit shall be .5% of the
29 basis for such property. The credit shall be available
30 only in the taxable year in which the property is placed
31 in service in the Enterprise Zone and shall not be
32 allowed to the extent that it would reduce a taxpayer's
33 liability for the tax imposed by subsections (a) and (b)
34 of this Section to below zero. For tax years ending on or
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1 after December 31, 1985, the credit shall be allowed for
2 the tax year in which the property is placed in service,
3 or, if the amount of the credit exceeds the tax liability
4 for that year, whether it exceeds the original liability
5 or the liability as later amended, such excess may be
6 carried forward and applied to the tax liability of the 5
7 taxable years following the excess credit year. The
8 credit shall be applied to the earliest year for which
9 there is a liability. If there is credit from more than
10 one tax year that is available to offset a liability, the
11 credit accruing first in time shall be applied first.
12 (2) The term qualified property means property
13 which:
14 (A) is tangible, whether new or used,
15 including buildings and structural components of
16 buildings;
17 (B) is depreciable pursuant to Section 167 of
18 the Internal Revenue Code, except that "3-year
19 property" as defined in Section 168(c)(2)(A) of that
20 Code is not eligible for the credit provided by this
21 subsection (f);
22 (C) is acquired by purchase as defined in
23 Section 179(d) of the Internal Revenue Code;
24 (D) is used in the Enterprise Zone by the
25 taxpayer; and
26 (E) has not been previously used in Illinois
27 in such a manner and by such a person as would
28 qualify for the credit provided by this subsection
29 (f) or subsection (e).
30 (3) The basis of qualified property shall be the
31 basis used to compute the depreciation deduction for
32 federal income tax purposes.
33 (4) If the basis of the property for federal income
34 tax depreciation purposes is increased after it has been
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1 placed in service in the Enterprise Zone by the taxpayer,
2 the amount of such increase shall be deemed property
3 placed in service on the date of such increase in basis.
4 (5) The term "placed in service" shall have the
5 same meaning as under Section 46 of the Internal Revenue
6 Code.
7 (6) If during any taxable year, any property ceases
8 to be qualified property in the hands of the taxpayer
9 within 48 months after being placed in service, or the
10 situs of any qualified property is moved outside the
11 Enterprise Zone within 48 months after being placed in
12 service, the tax imposed under subsections (a) and (b) of
13 this Section for such taxable year shall be increased.
14 Such increase shall be determined by (i) recomputing the
15 investment credit which would have been allowed for the
16 year in which credit for such property was originally
17 allowed by eliminating such property from such
18 computation, and (ii) subtracting such recomputed credit
19 from the amount of credit previously allowed. For the
20 purposes of this paragraph (6), a reduction of the basis
21 of qualified property resulting from a redetermination of
22 the purchase price shall be deemed a disposition of
23 qualified property to the extent of such reduction.
24 (g) Jobs Tax Credit; Enterprise Zone and Foreign
25 Trade Zone or Sub-Zone.
26 (1) A taxpayer conducting a trade or business in an
27 enterprise zone or a High Impact Business designated by
28 the Department of Commerce and Community Affairs
29 conducting a trade or business in a federally designated
30 Foreign Trade Zone or Sub-Zone shall be allowed a credit
31 against the tax imposed by subsections (a) and (b) of
32 this Section in the amount of $500 per eligible employee
33 hired to work in the zone during the taxable year.
34 (2) To qualify for the credit:
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1 (A) the taxpayer must hire 5 or more eligible
2 employees to work in an enterprise zone or federally
3 designated Foreign Trade Zone or Sub-Zone during the
4 taxable year;
5 (B) the taxpayer's total employment within the
6 enterprise zone or federally designated Foreign
7 Trade Zone or Sub-Zone must increase by 5 or more
8 full-time employees beyond the total employed in
9 that zone at the end of the previous tax year for
10 which a jobs tax credit under this Section was
11 taken, or beyond the total employed by the taxpayer
12 as of December 31, 1985, whichever is later; and
13 (C) the eligible employees must be employed
14 180 consecutive days in order to be deemed hired for
15 purposes of this subsection.
16 (3) An "eligible employee" means an employee who
17 is:
18 (A) Certified by the Department of Commerce
19 and Community Affairs as "eligible for services"
20 pursuant to regulations promulgated in accordance
21 with Title II of the Job Training Partnership Act,
22 Training Services for the Disadvantaged or Title III
23 of the Job Training Partnership Act, Employment and
24 Training Assistance for Dislocated Workers Program.
25 (B) Hired after the enterprise zone or
26 federally designated Foreign Trade Zone or Sub-Zone
27 was designated or the trade or business was located
28 in that zone, whichever is later.
29 (C) Employed in the enterprise zone or Foreign
30 Trade Zone or Sub-Zone. An employee is employed in
31 an enterprise zone or federally designated Foreign
32 Trade Zone or Sub-Zone if his services are rendered
33 there or it is the base of operations for the
34 services performed.
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1 (D) A full-time employee working 30 or more
2 hours per week.
3 (4) For tax years ending on or after December 31,
4 1985 and prior to December 31, 1988, the credit shall be
5 allowed for the tax year in which the eligible employees
6 are hired. For tax years ending on or after December 31,
7 1988, the credit shall be allowed for the tax year
8 immediately following the tax year in which the eligible
9 employees are hired. If the amount of the credit exceeds
10 the tax liability for that year, whether it exceeds the
11 original liability or the liability as later amended,
12 such excess may be carried forward and applied to the tax
13 liability of the 5 taxable years following the excess
14 credit year. The credit shall be applied to the earliest
15 year for which there is a liability. If there is credit
16 from more than one tax year that is available to offset a
17 liability, earlier credit shall be applied first.
18 (5) The Department of Revenue shall promulgate such
19 rules and regulations as may be deemed necessary to carry
20 out the purposes of this subsection (g).
21 (6) The credit shall be available for eligible
22 employees hired on or after January 1, 1986.
23 (h) Investment credit; High Impact Business.
24 (1) Subject to subsection (b) of Section 5.5 of the
25 Illinois Enterprise Zone Act, a taxpayer shall be allowed
26 a credit against the tax imposed by subsections (a) and
27 (b) of this Section for investment in qualified property
28 which is placed in service by a Department of Commerce
29 and Community Affairs designated High Impact Business.
30 The credit shall be .5% of the basis for such property.
31 The credit shall not be available until the minimum
32 investments in qualified property set forth in Section
33 5.5 of the Illinois Enterprise Zone Act have been
34 satisfied and shall not be allowed to the extent that it
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1 would reduce a taxpayer's liability for the tax imposed
2 by subsections (a) and (b) of this Section to below zero.
3 The credit applicable to such minimum investments shall
4 be taken in the taxable year in which such minimum
5 investments have been completed. The credit for
6 additional investments beyond the minimum investment by a
7 designated high impact business shall be available only
8 in the taxable year in which the property is placed in
9 service and shall not be allowed to the extent that it
10 would reduce a taxpayer's liability for the tax imposed
11 by subsections (a) and (b) of this Section to below zero.
12 For tax years ending on or after December 31, 1987, the
13 credit shall be allowed for the tax year in which the
14 property is placed in service, or, if the amount of the
15 credit exceeds the tax liability for that year, whether
16 it exceeds the original liability or the liability as
17 later amended, such excess may be carried forward and
18 applied to the tax liability of the 5 taxable years
19 following the excess credit year. The credit shall be
20 applied to the earliest year for which there is a
21 liability. If there is credit from more than one tax
22 year that is available to offset a liability, the credit
23 accruing first in time shall be applied first.
24 Changes made in this subdivision (h)(1) by Public
25 Act 88-670 restore changes made by Public Act 85-1182 and
26 reflect existing law.
27 (2) The term qualified property means property
28 which:
29 (A) is tangible, whether new or used,
30 including buildings and structural components of
31 buildings;
32 (B) is depreciable pursuant to Section 167 of
33 the Internal Revenue Code, except that "3-year
34 property" as defined in Section 168(c)(2)(A) of that
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1 Code is not eligible for the credit provided by this
2 subsection (h);
3 (C) is acquired by purchase as defined in
4 Section 179(d) of the Internal Revenue Code; and
5 (D) is not eligible for the Enterprise Zone
6 Investment Credit provided by subsection (f) of this
7 Section.
8 (3) The basis of qualified property shall be the
9 basis used to compute the depreciation deduction for
10 federal income tax purposes.
11 (4) If the basis of the property for federal income
12 tax depreciation purposes is increased after it has been
13 placed in service in a federally designated Foreign Trade
14 Zone or Sub-Zone located in Illinois by the taxpayer, the
15 amount of such increase shall be deemed property placed
16 in service on the date of such increase in basis.
17 (5) The term "placed in service" shall have the
18 same meaning as under Section 46 of the Internal Revenue
19 Code.
20 (6) If during any taxable year ending on or before
21 December 31, 1996, any property ceases to be qualified
22 property in the hands of the taxpayer within 48 months
23 after being placed in service, or the situs of any
24 qualified property is moved outside Illinois within 48
25 months after being placed in service, the tax imposed
26 under subsections (a) and (b) of this Section for such
27 taxable year shall be increased. Such increase shall be
28 determined by (i) recomputing the investment credit which
29 would have been allowed for the year in which credit for
30 such property was originally allowed by eliminating such
31 property from such computation, and (ii) subtracting such
32 recomputed credit from the amount of credit previously
33 allowed. For the purposes of this paragraph (6), a
34 reduction of the basis of qualified property resulting
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1 from a redetermination of the purchase price shall be
2 deemed a disposition of qualified property to the extent
3 of such reduction.
4 (7) Beginning with tax years ending after December
5 31, 1996, if a taxpayer qualifies for the credit under
6 this subsection (h) and thereby is granted a tax
7 abatement and the taxpayer relocates its entire facility
8 in violation of the explicit terms and length of the
9 contract under Section 18-183 of the Property Tax Code,
10 the tax imposed under subsections (a) and (b) of this
11 Section shall be increased for the taxable year in which
12 the taxpayer relocated its facility by an amount equal to
13 the amount of credit received by the taxpayer under this
14 subsection (h).
15 (i) A credit shall be allowed against the tax imposed by
16 subsections (a) and (b) of this Section for the tax imposed
17 by subsections (c) and (d) of this Section. This credit
18 shall be computed by multiplying the tax imposed by
19 subsections (c) and (d) of this Section by a fraction, the
20 numerator of which is base income allocable to Illinois and
21 the denominator of which is Illinois base income, and further
22 multiplying the product by the tax rate imposed by
23 subsections (a) and (b) of this Section.
24 Any credit earned on or after December 31, 1986 under
25 this subsection which is unused in the year the credit is
26 computed because it exceeds the tax liability imposed by
27 subsections (a) and (b) for that year (whether it exceeds the
28 original liability or the liability as later amended) may be
29 carried forward and applied to the tax liability imposed by
30 subsections (a) and (b) of the 5 taxable years following the
31 excess credit year. This credit shall be applied first to
32 the earliest year for which there is a liability. If there
33 is a credit under this subsection from more than one tax year
34 that is available to offset a liability the earliest credit
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1 arising under this subsection shall be applied first.
2 If, during any taxable year ending on or after December
3 31, 1986, the tax imposed by subsections (c) and (d) of this
4 Section for which a taxpayer has claimed a credit under this
5 subsection (i) is reduced, the amount of credit for such tax
6 shall also be reduced. Such reduction shall be determined by
7 recomputing the credit to take into account the reduced tax
8 imposed by subsection (c) and (d). If any portion of the
9 reduced amount of credit has been carried to a different
10 taxable year, an amended return shall be filed for such
11 taxable year to reduce the amount of credit claimed.
12 (j) Training expense credit. Beginning with tax years
13 ending on or after December 31, 1986, a taxpayer shall be
14 allowed a credit against the tax imposed by subsection (a)
15 and (b) under this Section for all amounts paid or accrued,
16 on behalf of all persons employed by the taxpayer in Illinois
17 or Illinois residents employed outside of Illinois by a
18 taxpayer, for educational or vocational training in
19 semi-technical or technical fields or semi-skilled or skilled
20 fields, which were deducted from gross income in the
21 computation of taxable income. The credit against the tax
22 imposed by subsections (a) and (b) shall be 1.6% of such
23 training expenses. For partners, and for shareholders of
24 subchapter S corporations, and owners of limited liability
25 companies, if the liability company is treated as a
26 partnership for purposes of federal and State income
27 taxation, there shall be allowed a credit under this
28 subsection (j) to be determined in accordance with the
29 determination of income and distributive share of income
30 under Sections 702 and 704 and subchapter S of the Internal
31 Revenue Code.
32 Any credit allowed under this subsection which is unused
33 in the year the credit is earned may be carried forward to
34 each of the 5 taxable years following the year for which the
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1 credit is first computed until it is used. This credit shall
2 be applied first to the earliest year for which there is a
3 liability. If there is a credit under this subsection from
4 more than one tax year that is available to offset a
5 liability the earliest credit arising under this subsection
6 shall be applied first.
7 (k) Research and development credit.
8 Beginning with tax years ending after July 1, 1990, a
9 taxpayer shall be allowed a credit against the tax imposed by
10 subsections (a) and (b) of this Section for increasing
11 research activities in this State. The credit allowed
12 against the tax imposed by subsections (a) and (b) shall be
13 equal to 6 1/2% of the qualifying expenditures for increasing
14 research activities in this State. For partners, shareholders
15 of subchapter S corporations, and owners of limited liability
16 companies, if the liability company is treated as a
17 partnership for purposes of federal and State income
18 taxation, there shall be allowed a credit under this
19 subsection to be determined in accordance with the
20 determination of income and distributive share of income
21 under Sections 702 and 704 and subchapter S of the Internal
22 Revenue Code.
23 For purposes of this subsection, "qualifying
24 expenditures" means the qualifying expenditures as defined
25 for the federal credit for increasing research activities
26 which would be allowable under Section 41 of the Internal
27 Revenue Code and which are conducted in this State,
28 "qualifying expenditures for increasing research activities
29 in this State" means the excess of qualifying expenditures
30 for the taxable year in which incurred over qualifying
31 expenditures for the base period, "qualifying expenditures
32 for the base period" means the average of the qualifying
33 expenditures for each year in the base period, and "base
34 period" means the 3 taxable years immediately preceding the
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1 taxable year for which the determination is being made.
2 Any credit in excess of the tax liability for the taxable
3 year may be carried forward. A taxpayer may elect to have the
4 unused credit shown on its final completed return carried
5 over as a credit against the tax liability for the following
6 5 taxable years or until it has been fully used, whichever
7 occurs first.
8 If an unused credit is carried forward to a given year
9 from 2 or more earlier years, that credit arising in the
10 earliest year will be applied first against the tax liability
11 for the given year. If a tax liability for the given year
12 still remains, the credit from the next earliest year will
13 then be applied, and so on, until all credits have been used
14 or no tax liability for the given year remains. Any
15 remaining unused credit or credits then will be carried
16 forward to the next following year in which a tax liability
17 is incurred, except that no credit can be carried forward to
18 a year which is more than 5 years after the year in which the
19 expense for which the credit is given was incurred.
20 Unless extended by law, the credit shall not include
21 costs incurred after December 31, 2004, except for costs
22 incurred pursuant to a binding contract entered into on or
23 before December 31, 2004.
24 No inference shall be drawn from this amendatory Act of
25 the 91st General Assembly in construing this Section for
26 taxable years beginning before January 1, 1999.
27 (l) Environmental Remediation Tax Credit.
28 (i) For tax years ending after December 31, 1997
29 and on or before December 31, 2001, a taxpayer shall be
30 allowed a credit against the tax imposed by subsections
31 (a) and (b) of this Section for certain amounts paid for
32 unreimbursed eligible remediation costs, as specified in
33 this subsection. For purposes of this Section,
34 "unreimbursed eligible remediation costs" means costs
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1 approved by the Illinois Environmental Protection Agency
2 ("Agency") under Section 58.14 of the Environmental
3 Protection Act that were paid in performing environmental
4 remediation at a site for which a No Further Remediation
5 Letter was issued by the Agency and recorded under
6 Section 58.10 of the Environmental Protection Act. The
7 credit must be claimed for the taxable year in which
8 Agency approval of the eligible remediation costs is
9 granted. The credit is not available to any taxpayer if
10 the taxpayer or any related party caused or contributed
11 to, in any material respect, a release of regulated
12 substances on, in, or under the site that was identified
13 and addressed by the remedial action pursuant to the Site
14 Remediation Program of the Environmental Protection Act.
15 After the Pollution Control Board rules are adopted
16 pursuant to the Illinois Administrative Procedure Act for
17 the administration and enforcement of Section 58.9 of the
18 Environmental Protection Act, determinations as to credit
19 availability for purposes of this Section shall be made
20 consistent with those rules. For purposes of this
21 Section, "taxpayer" includes a person whose tax
22 attributes the taxpayer has succeeded to under Section
23 381 of the Internal Revenue Code and "related party"
24 includes the persons disallowed a deduction for losses by
25 paragraphs (b), (c), and (f)(1) of Section 267 of the
26 Internal Revenue Code by virtue of being a related
27 taxpayer, as well as any of its partners. The credit
28 allowed against the tax imposed by subsections (a) and
29 (b) shall be equal to 25% of the unreimbursed eligible
30 remediation costs in excess of $100,000 per site, except
31 that the $100,000 threshold shall not apply to any site
32 contained in an enterprise zone as determined by the
33 Department of Commerce and Community Affairs. The total
34 credit allowed shall not exceed $40,000 per year with a
SB878 Enrolled -19- LRB9105091PTpk
1 maximum total of $150,000 per site. For partners and
2 shareholders of subchapter S corporations, there shall be
3 allowed a credit under this subsection to be determined
4 in accordance with the determination of income and
5 distributive share of income under Sections 702 and 704
6 of subchapter S of the Internal Revenue Code.
7 (ii) A credit allowed under this subsection that is
8 unused in the year the credit is earned may be carried
9 forward to each of the 5 taxable years following the year
10 for which the credit is first earned until it is used.
11 The term "unused credit" does not include any amounts of
12 unreimbursed eligible remediation costs in excess of the
13 maximum credit per site authorized under paragraph (i).
14 This credit shall be applied first to the earliest year
15 for which there is a liability. If there is a credit
16 under this subsection from more than one tax year that is
17 available to offset a liability, the earliest credit
18 arising under this subsection shall be applied first. A
19 credit allowed under this subsection may be sold to a
20 buyer as part of a sale of all or part of the remediation
21 site for which the credit was granted. The purchaser of
22 a remediation site and the tax credit shall succeed to
23 the unused credit and remaining carry-forward period of
24 the seller. To perfect the transfer, the assignor shall
25 record the transfer in the chain of title for the site
26 and provide written notice to the Director of the
27 Illinois Department of Revenue of the assignor's intent
28 to sell the remediation site and the amount of the tax
29 credit to be transferred as a portion of the sale. In no
30 event may a credit be transferred to any taxpayer if the
31 taxpayer or a related party would not be eligible under
32 the provisions of subsection (i).
33 (iii) For purposes of this Section, the term "site"
34 shall have the same meaning as under Section 58.2 of the
SB878 Enrolled -20- LRB9105091PTpk
1 Environmental Protection Act.
2 (Source: P.A. 89-235, eff. 8-4-95; 89-519, eff. 7-18-96;
3 89-591, eff. 8-1-96; 90-123, eff. 7-21-97; 90-458, eff.
4 8-17-97; 90-605, eff. 6-30-98; 90-655, eff. 7-30-98; 90-717,
5 eff. 8-7-98; 90-792, eff. 1-1-99; revised 9-16-98.)
6 Section 5. The Use Tax Act is amended by changing
7 Section 3-5 as follows:
8 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
9 Sec. 3-5. Exemptions. Use of the following tangible
10 personal property is exempt from the tax imposed by this Act:
11 (1) Personal property purchased from a corporation,
12 society, association, foundation, institution, or
13 organization, other than a limited liability company, that is
14 organized and operated as a not-for-profit service enterprise
15 for the benefit of persons 65 years of age or older if the
16 personal property was not purchased by the enterprise for the
17 purpose of resale by the enterprise.
18 (2) Personal property purchased by a not-for-profit
19 Illinois county fair association for use in conducting,
20 operating, or promoting the county fair.
21 (3) Personal property purchased by a not-for-profit
22 music or dramatic arts organization that establishes, by
23 proof required by the Department by rule, that it has
24 received an exemption under Section 501(c)(3) of the Internal
25 Revenue Code and that is organized and operated for the
26 presentation of live public performances of musical or
27 theatrical works on a regular basis.
28 (4) Personal property purchased by a governmental body,
29 by a corporation, society, association, foundation, or
30 institution organized and operated exclusively for
31 charitable, religious, or educational purposes, or by a
32 not-for-profit corporation, society, association, foundation,
SB878 Enrolled -21- LRB9105091PTpk
1 institution, or organization that has no compensated officers
2 or employees and that is organized and operated primarily for
3 the recreation of persons 55 years of age or older. A limited
4 liability company may qualify for the exemption under this
5 paragraph only if the limited liability company is organized
6 and operated exclusively for educational purposes. On and
7 after July 1, 1987, however, no entity otherwise eligible for
8 this exemption shall make tax-free purchases unless it has an
9 active exemption identification number issued by the
10 Department.
11 (5) A passenger car that is a replacement vehicle to the
12 extent that the purchase price of the car is subject to the
13 Replacement Vehicle Tax.
14 (6) Graphic arts machinery and equipment, including
15 repair and replacement parts, both new and used, and
16 including that manufactured on special order, certified by
17 the purchaser to be used primarily for graphic arts
18 production, and including machinery and equipment purchased
19 for lease.
20 (7) Farm chemicals.
21 (8) Legal tender, currency, medallions, or gold or
22 silver coinage issued by the State of Illinois, the
23 government of the United States of America, or the government
24 of any foreign country, and bullion.
25 (9) Personal property purchased from a teacher-sponsored
26 student organization affiliated with an elementary or
27 secondary school located in Illinois.
28 (10) A motor vehicle of the first division, a motor
29 vehicle of the second division that is a self-contained motor
30 vehicle designed or permanently converted to provide living
31 quarters for recreational, camping, or travel use, with
32 direct walk through to the living quarters from the driver's
33 seat, or a motor vehicle of the second division that is of
34 the van configuration designed for the transportation of not
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1 less than 7 nor more than 16 passengers, as defined in
2 Section 1-146 of the Illinois Vehicle Code, that is used for
3 automobile renting, as defined in the Automobile Renting
4 Occupation and Use Tax Act.
5 (11) Farm machinery and equipment, both new and used,
6 including that manufactured on special order, certified by
7 the purchaser to be used primarily for production agriculture
8 or State or federal agricultural programs, including
9 individual replacement parts for the machinery and equipment,
10 including machinery and equipment purchased for lease, and
11 including implements of husbandry defined in Section 1-130 of
12 the Illinois Vehicle Code, farm machinery and agricultural
13 chemical and fertilizer spreaders, and nurse wagons required
14 to be registered under Section 3-809 of the Illinois Vehicle
15 Code, but excluding other motor vehicles required to be
16 registered under the Illinois Vehicle Code. Horticultural
17 polyhouses or hoop houses used for propagating, growing, or
18 overwintering plants shall be considered farm machinery and
19 equipment under this item (11). Agricultural chemical tender
20 tanks and dry boxes shall include units sold separately from
21 a motor vehicle required to be licensed and units sold
22 mounted on a motor vehicle required to be licensed if the
23 selling price of the tender is separately stated.
24 Farm machinery and equipment shall include precision
25 farming equipment that is installed or purchased to be
26 installed on farm machinery and equipment including, but not
27 limited to, tractors, harvesters, sprayers, planters,
28 seeders, or spreaders. Precision farming equipment includes,
29 but is not limited to, soil testing sensors, computers,
30 monitors, software, global positioning and mapping systems,
31 and other such equipment.
32 Farm machinery and equipment also includes computers,
33 sensors, software, and related equipment used primarily in
34 the computer-assisted operation of production agriculture
SB878 Enrolled -23- LRB9105091PTpk
1 facilities, equipment, and activities such as, but not
2 limited to, the collection, monitoring, and correlation of
3 animal and crop data for the purpose of formulating animal
4 diets and agricultural chemicals. This item (11) is exempt
5 from the provisions of Section 3-90.
6 (12) Fuel and petroleum products sold to or used by an
7 air common carrier, certified by the carrier to be used for
8 consumption, shipment, or storage in the conduct of its
9 business as an air common carrier, for a flight destined for
10 or returning from a location or locations outside the United
11 States without regard to previous or subsequent domestic
12 stopovers.
13 (13) Proceeds of mandatory service charges separately
14 stated on customers' bills for the purchase and consumption
15 of food and beverages purchased at retail from a retailer, to
16 the extent that the proceeds of the service charge are in
17 fact turned over as tips or as a substitute for tips to the
18 employees who participate directly in preparing, serving,
19 hosting or cleaning up the food or beverage function with
20 respect to which the service charge is imposed.
21 (14) Oil field exploration, drilling, and production
22 equipment, including (i) rigs and parts of rigs, rotary rigs,
23 cable tool rigs, and workover rigs, (ii) pipe and tubular
24 goods, including casing and drill strings, (iii) pumps and
25 pump-jack units, (iv) storage tanks and flow lines, (v) any
26 individual replacement part for oil field exploration,
27 drilling, and production equipment, and (vi) machinery and
28 equipment purchased for lease; but excluding motor vehicles
29 required to be registered under the Illinois Vehicle Code.
30 (15) Photoprocessing machinery and equipment, including
31 repair and replacement parts, both new and used, including
32 that manufactured on special order, certified by the
33 purchaser to be used primarily for photoprocessing, and
34 including photoprocessing machinery and equipment purchased
SB878 Enrolled -24- LRB9105091PTpk
1 for lease.
2 (16) Coal exploration, mining, offhighway hauling,
3 processing, maintenance, and reclamation equipment, including
4 replacement parts and equipment, and including equipment
5 purchased for lease, but excluding motor vehicles required to
6 be registered under the Illinois Vehicle Code.
7 (17) Distillation machinery and equipment, sold as a
8 unit or kit, assembled or installed by the retailer,
9 certified by the user to be used only for the production of
10 ethyl alcohol that will be used for consumption as motor fuel
11 or as a component of motor fuel for the personal use of the
12 user, and not subject to sale or resale.
13 (18) Manufacturing and assembling machinery and
14 equipment used primarily in the process of manufacturing or
15 assembling tangible personal property for wholesale or retail
16 sale or lease, whether that sale or lease is made directly by
17 the manufacturer or by some other person, whether the
18 materials used in the process are owned by the manufacturer
19 or some other person, or whether that sale or lease is made
20 apart from or as an incident to the seller's engaging in the
21 service occupation of producing machines, tools, dies, jigs,
22 patterns, gauges, or other similar items of no commercial
23 value on special order for a particular purchaser.
24 (19) Personal property delivered to a purchaser or
25 purchaser's donee inside Illinois when the purchase order for
26 that personal property was received by a florist located
27 outside Illinois who has a florist located inside Illinois
28 deliver the personal property.
29 (20) Semen used for artificial insemination of livestock
30 for direct agricultural production.
31 (21) Horses, or interests in horses, registered with and
32 meeting the requirements of any of the Arabian Horse Club
33 Registry of America, Appaloosa Horse Club, American Quarter
34 Horse Association, United States Trotting Association, or
SB878 Enrolled -25- LRB9105091PTpk
1 Jockey Club, as appropriate, used for purposes of breeding or
2 racing for prizes.
3 (22) Computers and communications equipment utilized for
4 any hospital purpose and equipment used in the diagnosis,
5 analysis, or treatment of hospital patients purchased by a
6 lessor who leases the equipment, under a lease of one year or
7 longer executed or in effect at the time the lessor would
8 otherwise be subject to the tax imposed by this Act, to a
9 hospital that has been issued an active tax exemption
10 identification number by the Department under Section 1g of
11 the Retailers' Occupation Tax Act. If the equipment is
12 leased in a manner that does not qualify for this exemption
13 or is used in any other non-exempt manner, the lessor shall
14 be liable for the tax imposed under this Act or the Service
15 Use Tax Act, as the case may be, based on the fair market
16 value of the property at the time the non-qualifying use
17 occurs. No lessor shall collect or attempt to collect an
18 amount (however designated) that purports to reimburse that
19 lessor for the tax imposed by this Act or the Service Use Tax
20 Act, as the case may be, if the tax has not been paid by the
21 lessor. If a lessor improperly collects any such amount from
22 the lessee, the lessee shall have a legal right to claim a
23 refund of that amount from the lessor. If, however, that
24 amount is not refunded to the lessee for any reason, the
25 lessor is liable to pay that amount to the Department.
26 (23) Personal property purchased by a lessor who leases
27 the property, under a lease of one year or longer executed
28 or in effect at the time the lessor would otherwise be
29 subject to the tax imposed by this Act, to a governmental
30 body that has been issued an active sales tax exemption
31 identification number by the Department under Section 1g of
32 the Retailers' Occupation Tax Act. If the property is leased
33 in a manner that does not qualify for this exemption or used
34 in any other non-exempt manner, the lessor shall be liable
SB878 Enrolled -26- LRB9105091PTpk
1 for the tax imposed under this Act or the Service Use Tax
2 Act, as the case may be, based on the fair market value of
3 the property at the time the non-qualifying use occurs. No
4 lessor shall collect or attempt to collect an amount (however
5 designated) that purports to reimburse that lessor for the
6 tax imposed by this Act or the Service Use Tax Act, as the
7 case may be, if the tax has not been paid by the lessor. If
8 a lessor improperly collects any such amount from the lessee,
9 the lessee shall have a legal right to claim a refund of that
10 amount from the lessor. If, however, that amount is not
11 refunded to the lessee for any reason, the lessor is liable
12 to pay that amount to the Department.
13 (24) Beginning with taxable years ending on or after
14 December 31, 1995 and ending with taxable years ending on or
15 before December 31, 2004, personal property that is donated
16 for disaster relief to be used in a State or federally
17 declared disaster area in Illinois or bordering Illinois by a
18 manufacturer or retailer that is registered in this State to
19 a corporation, society, association, foundation, or
20 institution that has been issued a sales tax exemption
21 identification number by the Department that assists victims
22 of the disaster who reside within the declared disaster area.
23 (25) Beginning with taxable years ending on or after
24 December 31, 1995 and ending with taxable years ending on or
25 before December 31, 2004, personal property that is used in
26 the performance of infrastructure repairs in this State,
27 including but not limited to municipal roads and streets,
28 access roads, bridges, sidewalks, waste disposal systems,
29 water and sewer line extensions, water distribution and
30 purification facilities, storm water drainage and retention
31 facilities, and sewage treatment facilities, resulting from a
32 State or federally declared disaster in Illinois or bordering
33 Illinois when such repairs are initiated on facilities
34 located in the declared disaster area within 6 months after
SB878 Enrolled -27- LRB9105091PTpk
1 the disaster.
2 (26) Beginning January 1, 2000, new or used automatic
3 vending machines that prepare and serve hot food and
4 beverages, including coffee, soup, and other items, and
5 replacement parts for these machines. This paragraph is
6 exempt from the provisions of Section 3-90.
7 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
8 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
9 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
10 eff. 12-12-97; 90-605, eff. 6-30-98.)
11 Section 10. The Service Use Tax Act is amended by
12 changing Section 3-5 as follows:
13 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
14 Sec. 3-5. Exemptions. Use of the following tangible
15 personal property is exempt from the tax imposed by this Act:
16 (1) Personal property purchased from a corporation,
17 society, association, foundation, institution, or
18 organization, other than a limited liability company, that is
19 organized and operated as a not-for-profit service enterprise
20 for the benefit of persons 65 years of age or older if the
21 personal property was not purchased by the enterprise for the
22 purpose of resale by the enterprise.
23 (2) Personal property purchased by a non-profit Illinois
24 county fair association for use in conducting, operating, or
25 promoting the county fair.
26 (3) Personal property purchased by a not-for-profit
27 music or dramatic arts organization that establishes, by
28 proof required by the Department by rule, that it has
29 received an exemption under Section 501(c)(3) of the Internal
30 Revenue Code and that is organized and operated for the
31 presentation of live public performances of musical or
32 theatrical works on a regular basis.
SB878 Enrolled -28- LRB9105091PTpk
1 (4) Legal tender, currency, medallions, or gold or
2 silver coinage issued by the State of Illinois, the
3 government of the United States of America, or the government
4 of any foreign country, and bullion.
5 (5) Graphic arts machinery and equipment, including
6 repair and replacement parts, both new and used, and
7 including that manufactured on special order or purchased for
8 lease, certified by the purchaser to be used primarily for
9 graphic arts production.
10 (6) Personal property purchased from a teacher-sponsored
11 student organization affiliated with an elementary or
12 secondary school located in Illinois.
13 (7) Farm machinery and equipment, both new and used,
14 including that manufactured on special order, certified by
15 the purchaser to be used primarily for production agriculture
16 or State or federal agricultural programs, including
17 individual replacement parts for the machinery and equipment,
18 including machinery and equipment purchased for lease, and
19 including implements of husbandry defined in Section 1-130 of
20 the Illinois Vehicle Code, farm machinery and agricultural
21 chemical and fertilizer spreaders, and nurse wagons required
22 to be registered under Section 3-809 of the Illinois Vehicle
23 Code, but excluding other motor vehicles required to be
24 registered under the Illinois Vehicle Code. Horticultural
25 polyhouses or hoop houses used for propagating, growing, or
26 overwintering plants shall be considered farm machinery and
27 equipment under this item (7). Agricultural chemical tender
28 tanks and dry boxes shall include units sold separately from
29 a motor vehicle required to be licensed and units sold
30 mounted on a motor vehicle required to be licensed if the
31 selling price of the tender is separately stated.
32 Farm machinery and equipment shall include precision
33 farming equipment that is installed or purchased to be
34 installed on farm machinery and equipment including, but not
SB878 Enrolled -29- LRB9105091PTpk
1 limited to, tractors, harvesters, sprayers, planters,
2 seeders, or spreaders. Precision farming equipment includes,
3 but is not limited to, soil testing sensors, computers,
4 monitors, software, global positioning and mapping systems,
5 and other such equipment.
6 Farm machinery and equipment also includes computers,
7 sensors, software, and related equipment used primarily in
8 the computer-assisted operation of production agriculture
9 facilities, equipment, and activities such as, but not
10 limited to, the collection, monitoring, and correlation of
11 animal and crop data for the purpose of formulating animal
12 diets and agricultural chemicals. This item (7) is exempt
13 from the provisions of Section 3-75.
14 (8) Fuel and petroleum products sold to or used by an
15 air common carrier, certified by the carrier to be used for
16 consumption, shipment, or storage in the conduct of its
17 business as an air common carrier, for a flight destined for
18 or returning from a location or locations outside the United
19 States without regard to previous or subsequent domestic
20 stopovers.
21 (9) Proceeds of mandatory service charges separately
22 stated on customers' bills for the purchase and consumption
23 of food and beverages acquired as an incident to the purchase
24 of a service from a serviceman, to the extent that the
25 proceeds of the service charge are in fact turned over as
26 tips or as a substitute for tips to the employees who
27 participate directly in preparing, serving, hosting or
28 cleaning up the food or beverage function with respect to
29 which the service charge is imposed.
30 (10) Oil field exploration, drilling, and production
31 equipment, including (i) rigs and parts of rigs, rotary rigs,
32 cable tool rigs, and workover rigs, (ii) pipe and tubular
33 goods, including casing and drill strings, (iii) pumps and
34 pump-jack units, (iv) storage tanks and flow lines, (v) any
SB878 Enrolled -30- LRB9105091PTpk
1 individual replacement part for oil field exploration,
2 drilling, and production equipment, and (vi) machinery and
3 equipment purchased for lease; but excluding motor vehicles
4 required to be registered under the Illinois Vehicle Code.
5 (11) Proceeds from the sale of photoprocessing machinery
6 and equipment, including repair and replacement parts, both
7 new and used, including that manufactured on special order,
8 certified by the purchaser to be used primarily for
9 photoprocessing, and including photoprocessing machinery and
10 equipment purchased for lease.
11 (12) Coal exploration, mining, offhighway hauling,
12 processing, maintenance, and reclamation equipment, including
13 replacement parts and equipment, and including equipment
14 purchased for lease, but excluding motor vehicles required to
15 be registered under the Illinois Vehicle Code.
16 (13) Semen used for artificial insemination of livestock
17 for direct agricultural production.
18 (14) Horses, or interests in horses, registered with and
19 meeting the requirements of any of the Arabian Horse Club
20 Registry of America, Appaloosa Horse Club, American Quarter
21 Horse Association, United States Trotting Association, or
22 Jockey Club, as appropriate, used for purposes of breeding or
23 racing for prizes.
24 (15) Computers and communications equipment utilized for
25 any hospital purpose and equipment used in the diagnosis,
26 analysis, or treatment of hospital patients purchased by a
27 lessor who leases the equipment, under a lease of one year or
28 longer executed or in effect at the time the lessor would
29 otherwise be subject to the tax imposed by this Act, to a
30 hospital that has been issued an active tax exemption
31 identification number by the Department under Section 1g of
32 the Retailers' Occupation Tax Act. If the equipment is leased
33 in a manner that does not qualify for this exemption or is
34 used in any other non-exempt manner, the lessor shall be
SB878 Enrolled -31- LRB9105091PTpk
1 liable for the tax imposed under this Act or the Use Tax Act,
2 as the case may be, based on the fair market value of the
3 property at the time the non-qualifying use occurs. No
4 lessor shall collect or attempt to collect an amount (however
5 designated) that purports to reimburse that lessor for the
6 tax imposed by this Act or the Use Tax Act, as the case may
7 be, if the tax has not been paid by the lessor. If a lessor
8 improperly collects any such amount from the lessee, the
9 lessee shall have a legal right to claim a refund of that
10 amount from the lessor. If, however, that amount is not
11 refunded to the lessee for any reason, the lessor is liable
12 to pay that amount to the Department.
13 (16) Personal property purchased by a lessor who leases
14 the property, under a lease of one year or longer executed or
15 in effect at the time the lessor would otherwise be subject
16 to the tax imposed by this Act, to a governmental body that
17 has been issued an active tax exemption identification number
18 by the Department under Section 1g of the Retailers'
19 Occupation Tax Act. If the property is leased in a manner
20 that does not qualify for this exemption or is used in any
21 other non-exempt manner, the lessor shall be liable for the
22 tax imposed under this Act or the Use Tax Act, as the case
23 may be, based on the fair market value of the property at the
24 time the non-qualifying use occurs. No lessor shall collect
25 or attempt to collect an amount (however designated) that
26 purports to reimburse that lessor for the tax imposed by this
27 Act or the Use Tax Act, as the case may be, if the tax has
28 not been paid by the lessor. If a lessor improperly collects
29 any such amount from the lessee, the lessee shall have a
30 legal right to claim a refund of that amount from the lessor.
31 If, however, that amount is not refunded to the lessee for
32 any reason, the lessor is liable to pay that amount to the
33 Department.
34 (17) Beginning with taxable years ending on or after
SB878 Enrolled -32- LRB9105091PTpk
1 December 31, 1995 and ending with taxable years ending on or
2 before December 31, 2004, personal property that is donated
3 for disaster relief to be used in a State or federally
4 declared disaster area in Illinois or bordering Illinois by a
5 manufacturer or retailer that is registered in this State to
6 a corporation, society, association, foundation, or
7 institution that has been issued a sales tax exemption
8 identification number by the Department that assists victims
9 of the disaster who reside within the declared disaster area.
10 (18) Beginning with taxable years ending on or after
11 December 31, 1995 and ending with taxable years ending on or
12 before December 31, 2004, personal property that is used in
13 the performance of infrastructure repairs in this State,
14 including but not limited to municipal roads and streets,
15 access roads, bridges, sidewalks, waste disposal systems,
16 water and sewer line extensions, water distribution and
17 purification facilities, storm water drainage and retention
18 facilities, and sewage treatment facilities, resulting from a
19 State or federally declared disaster in Illinois or bordering
20 Illinois when such repairs are initiated on facilities
21 located in the declared disaster area within 6 months after
22 the disaster.
23 (19) Beginning January 1, 2000, new or used automatic
24 vending machines that prepare and serve hot food and
25 beverages, including coffee, soup, and other items, and
26 replacement parts for these machines. This paragraph is
27 exempt from the provisions of Section 3-75.
28 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
29 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
30 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
31 eff. 12-12-97; 90-605, eff. 6-30-98.)
32 Section 15. The Service Occupation Tax Act is amended by
33 changing Section 3-5 as follows:
SB878 Enrolled -33- LRB9105091PTpk
1 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
2 Sec. 3-5. Exemptions. The following tangible personal
3 property is exempt from the tax imposed by this Act:
4 (1) Personal property sold by a corporation, society,
5 association, foundation, institution, or organization, other
6 than a limited liability company, that is organized and
7 operated as a not-for-profit service enterprise for the
8 benefit of persons 65 years of age or older if the personal
9 property was not purchased by the enterprise for the purpose
10 of resale by the enterprise.
11 (2) Personal property purchased by a not-for-profit
12 Illinois county fair association for use in conducting,
13 operating, or promoting the county fair.
14 (3) Personal property purchased by any not-for-profit
15 music or dramatic arts organization that establishes, by
16 proof required by the Department by rule, that it has
17 received an exemption under Section 501(c)(3) of the
18 Internal Revenue Code and that is organized and operated for
19 the presentation of live public performances of musical or
20 theatrical works on a regular basis.
21 (4) Legal tender, currency, medallions, or gold or
22 silver coinage issued by the State of Illinois, the
23 government of the United States of America, or the government
24 of any foreign country, and bullion.
25 (5) Graphic arts machinery and equipment, including
26 repair and replacement parts, both new and used, and
27 including that manufactured on special order or purchased for
28 lease, certified by the purchaser to be used primarily for
29 graphic arts production.
30 (6) Personal property sold by a teacher-sponsored
31 student organization affiliated with an elementary or
32 secondary school located in Illinois.
33 (7) Farm machinery and equipment, both new and used,
34 including that manufactured on special order, certified by
SB878 Enrolled -34- LRB9105091PTpk
1 the purchaser to be used primarily for production agriculture
2 or State or federal agricultural programs, including
3 individual replacement parts for the machinery and equipment,
4 including machinery and equipment purchased for lease, and
5 including implements of husbandry defined in Section 1-130 of
6 the Illinois Vehicle Code, farm machinery and agricultural
7 chemical and fertilizer spreaders, and nurse wagons required
8 to be registered under Section 3-809 of the Illinois Vehicle
9 Code, but excluding other motor vehicles required to be
10 registered under the Illinois Vehicle Code. Horticultural
11 polyhouses or hoop houses used for propagating, growing, or
12 overwintering plants shall be considered farm machinery and
13 equipment under this item (7). Agricultural chemical tender
14 tanks and dry boxes shall include units sold separately from
15 a motor vehicle required to be licensed and units sold
16 mounted on a motor vehicle required to be licensed if the
17 selling price of the tender is separately stated.
18 Farm machinery and equipment shall include precision
19 farming equipment that is installed or purchased to be
20 installed on farm machinery and equipment including, but not
21 limited to, tractors, harvesters, sprayers, planters,
22 seeders, or spreaders. Precision farming equipment includes,
23 but is not limited to, soil testing sensors, computers,
24 monitors, software, global positioning and mapping systems,
25 and other such equipment.
26 Farm machinery and equipment also includes computers,
27 sensors, software, and related equipment used primarily in
28 the computer-assisted operation of production agriculture
29 facilities, equipment, and activities such as, but not
30 limited to, the collection, monitoring, and correlation of
31 animal and crop data for the purpose of formulating animal
32 diets and agricultural chemicals. This item (7) is exempt
33 from the provisions of Section 3-55 3-75.
34 (8) Fuel and petroleum products sold to or used by an
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1 air common carrier, certified by the carrier to be used for
2 consumption, shipment, or storage in the conduct of its
3 business as an air common carrier, for a flight destined for
4 or returning from a location or locations outside the United
5 States without regard to previous or subsequent domestic
6 stopovers.
7 (9) Proceeds of mandatory service charges separately
8 stated on customers' bills for the purchase and consumption
9 of food and beverages, to the extent that the proceeds of the
10 service charge are in fact turned over as tips or as a
11 substitute for tips to the employees who participate directly
12 in preparing, serving, hosting or cleaning up the food or
13 beverage function with respect to which the service charge is
14 imposed.
15 (10) Oil field exploration, drilling, and production
16 equipment, including (i) rigs and parts of rigs, rotary rigs,
17 cable tool rigs, and workover rigs, (ii) pipe and tubular
18 goods, including casing and drill strings, (iii) pumps and
19 pump-jack units, (iv) storage tanks and flow lines, (v) any
20 individual replacement part for oil field exploration,
21 drilling, and production equipment, and (vi) machinery and
22 equipment purchased for lease; but excluding motor vehicles
23 required to be registered under the Illinois Vehicle Code.
24 (11) Photoprocessing machinery and equipment, including
25 repair and replacement parts, both new and used, including
26 that manufactured on special order, certified by the
27 purchaser to be used primarily for photoprocessing, and
28 including photoprocessing machinery and equipment purchased
29 for lease.
30 (12) Coal exploration, mining, offhighway hauling,
31 processing, maintenance, and reclamation equipment, including
32 replacement parts and equipment, and including equipment
33 purchased for lease, but excluding motor vehicles required to
34 be registered under the Illinois Vehicle Code.
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1 (13) Food for human consumption that is to be consumed
2 off the premises where it is sold (other than alcoholic
3 beverages, soft drinks and food that has been prepared for
4 immediate consumption) and prescription and non-prescription
5 medicines, drugs, medical appliances, and insulin, urine
6 testing materials, syringes, and needles used by diabetics,
7 for human use, when purchased for use by a person receiving
8 medical assistance under Article 5 of the Illinois Public Aid
9 Code who resides in a licensed long-term care facility, as
10 defined in the Nursing Home Care Act.
11 (14) Semen used for artificial insemination of livestock
12 for direct agricultural production.
13 (15) Horses, or interests in horses, registered with and
14 meeting the requirements of any of the Arabian Horse Club
15 Registry of America, Appaloosa Horse Club, American Quarter
16 Horse Association, United States Trotting Association, or
17 Jockey Club, as appropriate, used for purposes of breeding or
18 racing for prizes.
19 (16) Computers and communications equipment utilized for
20 any hospital purpose and equipment used in the diagnosis,
21 analysis, or treatment of hospital patients sold to a lessor
22 who leases the equipment, under a lease of one year or longer
23 executed or in effect at the time of the purchase, to a
24 hospital that has been issued an active tax exemption
25 identification number by the Department under Section 1g of
26 the Retailers' Occupation Tax Act.
27 (17) Personal property sold to a lessor who leases the
28 property, under a lease of one year or longer executed or in
29 effect at the time of the purchase, to a governmental body
30 that has been issued an active tax exemption identification
31 number by the Department under Section 1g of the Retailers'
32 Occupation Tax Act.
33 (18) Beginning with taxable years ending on or after
34 December 31, 1995 and ending with taxable years ending on or
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1 before December 31, 2004, personal property that is donated
2 for disaster relief to be used in a State or federally
3 declared disaster area in Illinois or bordering Illinois by a
4 manufacturer or retailer that is registered in this State to
5 a corporation, society, association, foundation, or
6 institution that has been issued a sales tax exemption
7 identification number by the Department that assists victims
8 of the disaster who reside within the declared disaster area.
9 (19) Beginning with taxable years ending on or after
10 December 31, 1995 and ending with taxable years ending on or
11 before December 31, 2004, personal property that is used in
12 the performance of infrastructure repairs in this State,
13 including but not limited to municipal roads and streets,
14 access roads, bridges, sidewalks, waste disposal systems,
15 water and sewer line extensions, water distribution and
16 purification facilities, storm water drainage and retention
17 facilities, and sewage treatment facilities, resulting from a
18 State or federally declared disaster in Illinois or bordering
19 Illinois when such repairs are initiated on facilities
20 located in the declared disaster area within 6 months after
21 the disaster.
22 (20) Beginning January 1, 2000, new or used automatic
23 vending machines that prepare and serve hot food and
24 beverages, including coffee, soup, and other items, and
25 replacement parts for these machines. This paragraph is
26 exempt from the provisions of Section 3-55.
27 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
28 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
29 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
30 eff. 12-12-97; 90-605, eff. 6-30-98; revised 2-10-99.)
31 Section 20. The Retailers' Occupation Tax Act is amended
32 by changing Section 2-5 as follows:
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1 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
2 Sec. 2-5. Exemptions. Gross receipts from proceeds from
3 the sale of the following tangible personal property are
4 exempt from the tax imposed by this Act:
5 (1) Farm chemicals.
6 (2) Farm machinery and equipment, both new and used,
7 including that manufactured on special order, certified by
8 the purchaser to be used primarily for production agriculture
9 or State or federal agricultural programs, including
10 individual replacement parts for the machinery and equipment,
11 including machinery and equipment purchased for lease, and
12 including implements of husbandry defined in Section 1-130 of
13 the Illinois Vehicle Code, farm machinery and agricultural
14 chemical and fertilizer spreaders, and nurse wagons required
15 to be registered under Section 3-809 of the Illinois Vehicle
16 Code, but excluding other motor vehicles required to be
17 registered under the Illinois Vehicle Code. Horticultural
18 polyhouses or hoop houses used for propagating, growing, or
19 overwintering plants shall be considered farm machinery and
20 equipment under this item (2). Agricultural chemical tender
21 tanks and dry boxes shall include units sold separately from
22 a motor vehicle required to be licensed and units sold
23 mounted on a motor vehicle required to be licensed, if the
24 selling price of the tender is separately stated.
25 Farm machinery and equipment shall include precision
26 farming equipment that is installed or purchased to be
27 installed on farm machinery and equipment including, but not
28 limited to, tractors, harvesters, sprayers, planters,
29 seeders, or spreaders. Precision farming equipment includes,
30 but is not limited to, soil testing sensors, computers,
31 monitors, software, global positioning and mapping systems,
32 and other such equipment.
33 Farm machinery and equipment also includes computers,
34 sensors, software, and related equipment used primarily in
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1 the computer-assisted operation of production agriculture
2 facilities, equipment, and activities such as, but not
3 limited to, the collection, monitoring, and correlation of
4 animal and crop data for the purpose of formulating animal
5 diets and agricultural chemicals. This item (7) is exempt
6 from the provisions of Section 2-70 3-75.
7 (3) Distillation machinery and equipment, sold as a unit
8 or kit, assembled or installed by the retailer, certified by
9 the user to be used only for the production of ethyl alcohol
10 that will be used for consumption as motor fuel or as a
11 component of motor fuel for the personal use of the user, and
12 not subject to sale or resale.
13 (4) Graphic arts machinery and equipment, including
14 repair and replacement parts, both new and used, and
15 including that manufactured on special order or purchased for
16 lease, certified by the purchaser to be used primarily for
17 graphic arts production.
18 (5) A motor vehicle of the first division, a motor
19 vehicle of the second division that is a self-contained motor
20 vehicle designed or permanently converted to provide living
21 quarters for recreational, camping, or travel use, with
22 direct walk through access to the living quarters from the
23 driver's seat, or a motor vehicle of the second division that
24 is of the van configuration designed for the transportation
25 of not less than 7 nor more than 16 passengers, as defined in
26 Section 1-146 of the Illinois Vehicle Code, that is used for
27 automobile renting, as defined in the Automobile Renting
28 Occupation and Use Tax Act.
29 (6) Personal property sold by a teacher-sponsored
30 student organization affiliated with an elementary or
31 secondary school located in Illinois.
32 (7) Proceeds of that portion of the selling price of a
33 passenger car the sale of which is subject to the Replacement
34 Vehicle Tax.
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1 (8) Personal property sold to an Illinois county fair
2 association for use in conducting, operating, or promoting
3 the county fair.
4 (9) Personal property sold to a not-for-profit music or
5 dramatic arts organization that establishes, by proof
6 required by the Department by rule, that it has received an
7 exemption under Section 501(c) (3) of the Internal Revenue
8 Code and that is organized and operated for the presentation
9 of live public performances of musical or theatrical works on
10 a regular basis.
11 (10) Personal property sold by a corporation, society,
12 association, foundation, institution, or organization, other
13 than a limited liability company, that is organized and
14 operated as a not-for-profit service enterprise for the
15 benefit of persons 65 years of age or older if the personal
16 property was not purchased by the enterprise for the purpose
17 of resale by the enterprise.
18 (11) Personal property sold to a governmental body, to a
19 corporation, society, association, foundation, or institution
20 organized and operated exclusively for charitable, religious,
21 or educational purposes, or to a not-for-profit corporation,
22 society, association, foundation, institution, or
23 organization that has no compensated officers or employees
24 and that is organized and operated primarily for the
25 recreation of persons 55 years of age or older. A limited
26 liability company may qualify for the exemption under this
27 paragraph only if the limited liability company is organized
28 and operated exclusively for educational purposes. On and
29 after July 1, 1987, however, no entity otherwise eligible for
30 this exemption shall make tax-free purchases unless it has an
31 active identification number issued by the Department.
32 (12) Personal property sold to interstate carriers for
33 hire for use as rolling stock moving in interstate commerce
34 or to lessors under leases of one year or longer executed or
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1 in effect at the time of purchase by interstate carriers for
2 hire for use as rolling stock moving in interstate commerce
3 and equipment operated by a telecommunications provider,
4 licensed as a common carrier by the Federal Communications
5 Commission, which is permanently installed in or affixed to
6 aircraft moving in interstate commerce.
7 (13) Proceeds from sales to owners, lessors, or shippers
8 of tangible personal property that is utilized by interstate
9 carriers for hire for use as rolling stock moving in
10 interstate commerce and equipment operated by a
11 telecommunications provider, licensed as a common carrier by
12 the Federal Communications Commission, which is permanently
13 installed in or affixed to aircraft moving in interstate
14 commerce.
15 (14) Machinery and equipment that will be used by the
16 purchaser, or a lessee of the purchaser, primarily in the
17 process of manufacturing or assembling tangible personal
18 property for wholesale or retail sale or lease, whether the
19 sale or lease is made directly by the manufacturer or by some
20 other person, whether the materials used in the process are
21 owned by the manufacturer or some other person, or whether
22 the sale or lease is made apart from or as an incident to the
23 seller's engaging in the service occupation of producing
24 machines, tools, dies, jigs, patterns, gauges, or other
25 similar items of no commercial value on special order for a
26 particular purchaser.
27 (15) Proceeds of mandatory service charges separately
28 stated on customers' bills for purchase and consumption of
29 food and beverages, to the extent that the proceeds of the
30 service charge are in fact turned over as tips or as a
31 substitute for tips to the employees who participate directly
32 in preparing, serving, hosting or cleaning up the food or
33 beverage function with respect to which the service charge is
34 imposed.
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1 (16) Petroleum products sold to a purchaser if the
2 seller is prohibited by federal law from charging tax to the
3 purchaser.
4 (17) Tangible personal property sold to a common carrier
5 by rail or motor that receives the physical possession of the
6 property in Illinois and that transports the property, or
7 shares with another common carrier in the transportation of
8 the property, out of Illinois on a standard uniform bill of
9 lading showing the seller of the property as the shipper or
10 consignor of the property to a destination outside Illinois,
11 for use outside Illinois.
12 (18) Legal tender, currency, medallions, or gold or
13 silver coinage issued by the State of Illinois, the
14 government of the United States of America, or the government
15 of any foreign country, and bullion.
16 (19) Oil field exploration, drilling, and production
17 equipment, including (i) rigs and parts of rigs, rotary rigs,
18 cable tool rigs, and workover rigs, (ii) pipe and tubular
19 goods, including casing and drill strings, (iii) pumps and
20 pump-jack units, (iv) storage tanks and flow lines, (v) any
21 individual replacement part for oil field exploration,
22 drilling, and production equipment, and (vi) machinery and
23 equipment purchased for lease; but excluding motor vehicles
24 required to be registered under the Illinois Vehicle Code.
25 (20) Photoprocessing machinery and equipment, including
26 repair and replacement parts, both new and used, including
27 that manufactured on special order, certified by the
28 purchaser to be used primarily for photoprocessing, and
29 including photoprocessing machinery and equipment purchased
30 for lease.
31 (21) Coal exploration, mining, offhighway hauling,
32 processing, maintenance, and reclamation equipment, including
33 replacement parts and equipment, and including equipment
34 purchased for lease, but excluding motor vehicles required to
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1 be registered under the Illinois Vehicle Code.
2 (22) Fuel and petroleum products sold to or used by an
3 air carrier, certified by the carrier to be used for
4 consumption, shipment, or storage in the conduct of its
5 business as an air common carrier, for a flight destined for
6 or returning from a location or locations outside the United
7 States without regard to previous or subsequent domestic
8 stopovers.
9 (23) A transaction in which the purchase order is
10 received by a florist who is located outside Illinois, but
11 who has a florist located in Illinois deliver the property to
12 the purchaser or the purchaser's donee in Illinois.
13 (24) Fuel consumed or used in the operation of ships,
14 barges, or vessels that are used primarily in or for the
15 transportation of property or the conveyance of persons for
16 hire on rivers bordering on this State if the fuel is
17 delivered by the seller to the purchaser's barge, ship, or
18 vessel while it is afloat upon that bordering river.
19 (25) A motor vehicle sold in this State to a nonresident
20 even though the motor vehicle is delivered to the nonresident
21 in this State, if the motor vehicle is not to be titled in
22 this State, and if a driveaway decal permit is issued to the
23 motor vehicle as provided in Section 3-603 of the Illinois
24 Vehicle Code or if the nonresident purchaser has vehicle
25 registration plates to transfer to the motor vehicle upon
26 returning to his or her home state. The issuance of the
27 driveaway decal permit or having the out-of-state
28 registration plates to be transferred is prima facie evidence
29 that the motor vehicle will not be titled in this State.
30 (26) Semen used for artificial insemination of livestock
31 for direct agricultural production.
32 (27) Horses, or interests in horses, registered with and
33 meeting the requirements of any of the Arabian Horse Club
34 Registry of America, Appaloosa Horse Club, American Quarter
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1 Horse Association, United States Trotting Association, or
2 Jockey Club, as appropriate, used for purposes of breeding or
3 racing for prizes.
4 (28) Computers and communications equipment utilized for
5 any hospital purpose and equipment used in the diagnosis,
6 analysis, or treatment of hospital patients sold to a lessor
7 who leases the equipment, under a lease of one year or longer
8 executed or in effect at the time of the purchase, to a
9 hospital that has been issued an active tax exemption
10 identification number by the Department under Section 1g of
11 this Act.
12 (29) Personal property sold to a lessor who leases the
13 property, under a lease of one year or longer executed or in
14 effect at the time of the purchase, to a governmental body
15 that has been issued an active tax exemption identification
16 number by the Department under Section 1g of this Act.
17 (30) Beginning with taxable years ending on or after
18 December 31, 1995 and ending with taxable years ending on or
19 before December 31, 2004, personal property that is donated
20 for disaster relief to be used in a State or federally
21 declared disaster area in Illinois or bordering Illinois by a
22 manufacturer or retailer that is registered in this State to
23 a corporation, society, association, foundation, or
24 institution that has been issued a sales tax exemption
25 identification number by the Department that assists victims
26 of the disaster who reside within the declared disaster area.
27 (31) Beginning with taxable years ending on or after
28 December 31, 1995 and ending with taxable years ending on or
29 before December 31, 2004, personal property that is used in
30 the performance of infrastructure repairs in this State,
31 including but not limited to municipal roads and streets,
32 access roads, bridges, sidewalks, waste disposal systems,
33 water and sewer line extensions, water distribution and
34 purification facilities, storm water drainage and retention
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1 facilities, and sewage treatment facilities, resulting from a
2 State or federally declared disaster in Illinois or bordering
3 Illinois when such repairs are initiated on facilities
4 located in the declared disaster area within 6 months after
5 the disaster.
6 (32) Beginning January 1, 2000, new or used automatic
7 vending machines that prepare and serve hot food and
8 beverages, including coffee, soup, and other items, and
9 replacement parts for these machines. This paragraph is
10 exempt from the provisions of Section 2-70.
11 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
12 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
13 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-519,
14 eff. 6-1-98; 90-552, eff. 12-12-97; 90-605, eff. 6-30-98;
15 revised 2-10-99.)
16 Section 25. The Property Tax Code is amended by changing
17 Section 18-165 as follows:
18 (35 ILCS 200/18-165)
19 Sec. 18-165. Abatement of taxes.
20 (a) Any taxing district, upon a majority vote of its
21 governing authority, may, after the determination of the
22 assessed valuation of its property, order the clerk of that
23 county to abate any portion of its taxes on the following
24 types of property:
25 (1) Commercial and industrial.
26 (A) The property of any commercial or
27 industrial firm, including but not limited to the
28 property of any firm that is used for collecting,
29 separating, storing, or processing recyclable
30 materials, locating within the taxing district
31 during the immediately preceding year from another
32 state, territory, or country, or having been newly
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1 created within this State during the immediately
2 preceding year, or expanding an existing facility.
3 The abatement shall not exceed a period of 10 years
4 and the aggregate amount of abated taxes for all
5 taxing districts combined shall not exceed
6 $4,000,000; or
7 (B) The property of any commercial or
8 industrial development of at least 500 acres having
9 been created within the taxing district. The
10 abatement shall not exceed a period of 20 years and
11 the aggregate amount of abated taxes for all taxing
12 districts combined shall not exceed $12,000,000.
13 (C) The property of any commercial or
14 industrial firm currently located in the taxing
15 district that expands a facility or its number of
16 employees. The abatement shall not exceed a period
17 of 10 years and the aggregate amount of abated taxes
18 for all taxing districts combined shall not exceed
19 $4,000,000. The abatement period may be renewed at
20 the option of the taxing districts.
21 (2) Horse racing. Any property in the taxing
22 district which is used for the racing of horses and upon
23 which capital improvements consisting of expansion,
24 improvement or replacement of existing facilities have
25 been made since July 1, 1987. The combined abatements
26 for such property from all taxing districts in any county
27 shall not exceed $5,000,000 annually and shall not exceed
28 a period of 10 years.
29 (3) Auto racing. Any property designed exclusively
30 for the racing of motor vehicles. Such abatement shall
31 not exceed a period of 10 years.
32 (4) Academic or research institute. The property
33 of any academic or research institute in the taxing
34 district that (i) is an exempt organization under
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1 paragraph (3) of Section 501(c) of the Internal Revenue
2 Code, (ii) operates for the benefit of the public by
3 actually and exclusively performing scientific research
4 and making the results of the research available to the
5 interested public on a non-discriminatory basis, and
6 (iii) employs more than 100 employees. An abatement
7 granted under this paragraph shall be for at least 15
8 years and the aggregate amount of abated taxes for all
9 taxing districts combined shall not exceed $5,000,000.
10 (5) Housing for older persons. Any property in the
11 taxing district that is devoted exclusively to affordable
12 housing for older households. For purposes of this
13 paragraph, "older households" means those households (i)
14 living in housing provided under any State or federal
15 program that the Department of Human Rights determines is
16 specifically designed and operated to assist elderly
17 persons and is solely occupied by persons 55 years of age
18 or older and (ii) whose annual income does not exceed 80%
19 of the area gross median income, adjusted for family
20 size, as such gross income and median income are
21 determined from time to time by the United States
22 Department of Housing and Urban Development. The
23 abatement shall not exceed a period of 15 years, and the
24 aggregate amount of abated taxes for all taxing districts
25 shall not exceed $3,000,000.
26 (6) Historical society. For assessment years 1998
27 through 2000, the property of an historical society
28 qualifying as an exempt organization under Section
29 501(c)(3) of the federal Internal Revenue Code.
30 (b) Upon a majority vote of its governing authority, any
31 municipality may, after the determination of the assessed
32 valuation of its property, order the county clerk to abate
33 any portion of its taxes on any property that is located
34 within the corporate limits of the municipality in accordance
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1 with Section 8-3-18 of the Illinois Municipal Code.
2 (Source: P.A. 89-561, eff. 1-1-97; 90-46, eff. 7-3-97;
3 90-415, eff. 8-15-97; 90-568, eff. 1-1-99; 90-655, eff.
4 7-30-98.)
5 Section 99. Effective date. This Act takes effect upon
6 becoming law.
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