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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 3. The Department of Commerce and Economic | ||||||
5 | Opportunity Law of the
Civil Administrative Code of Illinois is | ||||||
6 | amended by adding Section 605-1025 as follows: | ||||||
7 | (20 ILCS 605/605-1025 new) | ||||||
8 | Sec. 605-1025. Data center investment. | ||||||
9 | (a) The Department shall issue certificates of exemption | ||||||
10 | from the Retailers' Occupation Tax Act, the Use Tax Act, the | ||||||
11 | Service Use Tax Act, and the Service Occupation Tax Act, all | ||||||
12 | locally-imposed retailers' occupation taxes administered and | ||||||
13 | collected by the Department, the Chicago non-titled Use Tax, | ||||||
14 | the Electricity Excise Tax Act, and a credit certification | ||||||
15 | against the taxes imposed under subsections (a) and (b) of | ||||||
16 | Section 201 of the Illinois Income Tax Act to qualifying | ||||||
17 | Illinois data centers. | ||||||
18 | (b) For taxable years beginning on or after January 1, | ||||||
19 | 2019, the Department shall award credits against the taxes | ||||||
20 | imposed under subsections (a) and (b) of Section 201 of the | ||||||
21 | Illinois Income Tax Act as provided in Section 229 of the | ||||||
22 | Illinois Income Tax Act. | ||||||
23 | (c) For purposes of this Section: |
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1 | "Data center" means a building or a series of buildings | ||||||
2 | that is rehabilitated or constructed to house working | ||||||
3 | servers in one physical location or several sites. | ||||||
4 | "Qualifying Illinois data center" means a new or | ||||||
5 | existing data center that: | ||||||
6 | (1) is located in the State of Illinois; | ||||||
7 | (2) in the case of an existing data center, made a | ||||||
8 | capital investment of at least $250,000,000 | ||||||
9 | collectively by the data center operator and the | ||||||
10 | tenants of all of its data centers over the 60-month | ||||||
11 | period immediately prior to January 1, 2020 or | ||||||
12 | committed to make a capital investment of at least | ||||||
13 | $250,000,000 over a 60-month period commencing before | ||||||
14 | January 1, 2020 and ending after January 1, 2020; or | ||||||
15 | (3) in the case of a new data center, makes a | ||||||
16 | capital investment of at least $250,000,000 over a | ||||||
17 | 60-month period; and | ||||||
18 | (4) in the case of both existing and new data | ||||||
19 | centers, results in the creation of at least 20 | ||||||
20 | full-time or full-time equivalent new jobs over a | ||||||
21 | period of 60 months by the data center operator and the | ||||||
22 | tenants of the data center, collectively, associated | ||||||
23 | with the operation or maintenance of the data center; | ||||||
24 | those jobs must have a total compensation equal to or | ||||||
25 | greater than 120% of the median wage paid to full-time | ||||||
26 | employees in the county where the data center is |
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1 | located, as determined by the U.S. Bureau of Labor | ||||||
2 | Statistics; and | ||||||
3 | (5) is carbon neutral or attains certification | ||||||
4 | under one or more of the following green building | ||||||
5 | standards: | ||||||
6 | (A) BREEAM for New Construction or BREEAM | ||||||
7 | In-Use; | ||||||
8 | (B) ENERGY STAR; | ||||||
9 | (C) Envision; | ||||||
10 | (D) ISO 50001-energy management; | ||||||
11 | (E) LEED for Building Design and Construction | ||||||
12 | or LEED for Operations and Maintenance; | ||||||
13 | (F) Green Globes for New Construction or Green | ||||||
14 | Globes for Existing Buildings; | ||||||
15 | (G) UL 3223; or | ||||||
16 | (H) an equivalent program approved by the | ||||||
17 | Department of Commerce and Economic Opportunity. | ||||||
18 | "Full-time equivalent job" means a job in which the new | ||||||
19 | employee works for the owner, operator, contractor, or | ||||||
20 | tenant of a data center or for a corporation under contract | ||||||
21 | with the owner, operator or tenant of a data center at a | ||||||
22 | rate of at least 35 hours per week. An owner, operator or | ||||||
23 | tenant who employs labor or services at a specific site or | ||||||
24 | facility under contract with another may declare one | ||||||
25 | full-time, permanent job for every 1,820 man hours worked | ||||||
26 | per year under that contract. Vacations, paid holidays, and |
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1 | sick time are included in this computation. Overtime is not | ||||||
2 | considered a part of regular hours. | ||||||
3 | "Qualified tangible personal property" means: | ||||||
4 | electrical systems and equipment; climate control and | ||||||
5 | chilling equipment and systems; mechanical systems and | ||||||
6 | equipment; monitoring and secure systems; emergency | ||||||
7 | generators; hardware; computers; servers; data storage | ||||||
8 | devices; network connectivity equipment; racks; cabinets; | ||||||
9 | telecommunications cabling infrastructure; raised floor | ||||||
10 | systems; peripheral components or systems; software; | ||||||
11 | mechanical, electrical, or plumbing systems; battery | ||||||
12 | systems; cooling systems and towers; temperature control | ||||||
13 | systems; other cabling; and other data center | ||||||
14 | infrastructure equipment and systems necessary to operate | ||||||
15 | qualified tangible personal property, including fixtures; | ||||||
16 | and component parts of any of the foregoing, including | ||||||
17 | installation, maintenance, repair, refurbishment, and | ||||||
18 | replacement of qualified tangible personal property to | ||||||
19 | generate, transform, transmit, distribute, or manage | ||||||
20 | electricity necessary to operate qualified tangible | ||||||
21 | personal property; and all other tangible personal | ||||||
22 | property that is essential to the operations of a computer | ||||||
23 | data center. "Qualified tangible personal property" also | ||||||
24 | includes building materials physically incorporated in to | ||||||
25 | the qualifying data center. | ||||||
26 | To document the exemption allowed under this Section, the |
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1 | retailer must obtain from the purchaser a copy of the | ||||||
2 | certificate of eligibility issued by the Department. | ||||||
3 | (d) New and existing data centers seeking a certificate of | ||||||
4 | exemption for new or existing facilities shall apply to the | ||||||
5 | Department in the manner specified by the Department. The | ||||||
6 | Department and any data center seeking the exemption, including | ||||||
7 | a data center operator on behalf of itself and its tenants, | ||||||
8 | must enter into a memorandum of understanding that at a minimum | ||||||
9 | provides: | ||||||
10 | (1) the details for determining the amount of capital | ||||||
11 | investment to be made; | ||||||
12 | (2) the number of new jobs created; | ||||||
13 | (3) the timeline for achieving the capital investment | ||||||
14 | and new job goals; | ||||||
15 | (4) the repayment obligation should those goals not be | ||||||
16 | achieved and any conditions under which repayment by the | ||||||
17 | qualifying data center or data center tenant claiming the | ||||||
18 | exemption will be required;
and | ||||||
19 | (5) other provisions as deemed necessary by the | ||||||
20 | Department. | ||||||
21 | (e) Beginning July 1, 2021, and each year thereafter, the | ||||||
22 | Department shall annually report to the Governor and the | ||||||
23 | General Assembly on the outcomes and effectiveness of this | ||||||
24 | amendatory Act of the 101st General Assembly that shall include | ||||||
25 | the following: | ||||||
26 | (1) the name of each recipient business; |
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1 | (2) the location of the project; | ||||||
2 | (3) the estimated value of the credit; | ||||||
3 | (4) the number of new jobs and, if applicable, retained | ||||||
4 | jobs pledged as a result of the project; and | ||||||
5 | (5) whether or not the project is located in an | ||||||
6 | underserved area. | ||||||
7 | (f) New and existing data centers seeking a certificate of | ||||||
8 | exemption related to the rehabilitation or construction of data | ||||||
9 | centers in the State shall require the contractor and all | ||||||
10 | subcontractors to comply with the requirements of Section 30-22 | ||||||
11 | of the Illinois Procurement Code as they apply to responsible | ||||||
12 | bidders and to present satisfactory evidence of that compliance | ||||||
13 | to the Department. | ||||||
14 | (g) New and existing data centers seeking a certificate of | ||||||
15 | exemption for the rehabilitation or construction of data | ||||||
16 | centers in the State shall require the contractor to enter into | ||||||
17 | a project labor agreement approved by the Department. | ||||||
18 | Section 4. The Illinois Income Tax Act is amended by adding | ||||||
19 | Section 229 as follows: | ||||||
20 | (35 ILCS 5/229 new) | ||||||
21 | Sec. 229. Data center construction employment tax credit. | ||||||
22 | (a) For tax years beginning on or after January 1, 2019, a | ||||||
23 | taxpayer who has been awarded a credit by the Department of | ||||||
24 | Commerce and Economic Opportunity under Section 605-1025 of the |
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1 | Department of Commerce and Economic Opportunity Law of the
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2 | Civil Administrative Code of Illinois is entitled to a credit | ||||||
3 | against the taxes imposed under subsections (a) and (b) of | ||||||
4 | Section 201 of this Act. The amount of the credit shall be 20% | ||||||
5 | of the wages paid during the taxable year to a full-time or | ||||||
6 | part-time employee of a construction contractor employed by a | ||||||
7 | certified data center if those wages are paid for the | ||||||
8 | construction of a new data center in a geographic area that | ||||||
9 | meets any one of the following criteria: | ||||||
10 | (1) the area has a poverty rate of at least 20%, | ||||||
11 | according to the latest federal decennial census; | ||||||
12 | (2) 75% or more of the children in the area participate | ||||||
13 | in the federal free lunch program, according to reported | ||||||
14 | statistics from the State Board of Education; | ||||||
15 | (3) 20% or more of the households in the area receive | ||||||
16 | assistance under the Supplemental Nutrition Assistance | ||||||
17 | Program (SNAP); or | ||||||
18 | (4) the area has an average unemployment rate, as | ||||||
19 | determined by the Department of Employment Security, that | ||||||
20 | is more than 120% of the national unemployment average, as | ||||||
21 | determined by the U.S. Department of Labor, for a period of | ||||||
22 | at least 2 consecutive calendar years preceding the date of | ||||||
23 | the application. | ||||||
24 | If the taxpayer is a partnership, a Subchapter S | ||||||
25 | corporation, or a limited liability company that has elected | ||||||
26 | partnership tax treatment, the credit shall be allowed to the |
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1 | partners, shareholders, or members in accordance with the | ||||||
2 | determination of income and distributive share of income under | ||||||
3 | Sections 702 and 704 and subchapter S of the Internal Revenue | ||||||
4 | Code, as applicable. The Department, in cooperation with the | ||||||
5 | Department of Commerce and Economic Opportunity, shall adopt | ||||||
6 | rules to enforce and administer this Section. This Section is | ||||||
7 | exempt from the provisions of Section 250 of this Act. | ||||||
8 | (b) In no event shall a credit under this Section reduce | ||||||
9 | the taxpayer's liability to less than zero. If the amount of | ||||||
10 | the credit exceeds the tax liability for the year, the excess | ||||||
11 | may be carried forward and applied to the tax liability of the | ||||||
12 | 5 taxable years following the excess credit year. The tax | ||||||
13 | credit shall be applied to the earliest year for which there is | ||||||
14 | a tax liability. If there are credits for more than one year | ||||||
15 | that are available to offset a liability, the earlier credit | ||||||
16 | shall be applied first. | ||||||
17 | (c) No credit shall be allowed with respect to any | ||||||
18 | certification for any taxable year ending after the revocation | ||||||
19 | of the certification by the Department of Commerce and Economic | ||||||
20 | Opportunity. Upon receiving notification by the Department of | ||||||
21 | Commerce and Economic Opportunity of the revocation of | ||||||
22 | certification, the Department shall notify the taxpayer that no | ||||||
23 | credit is allowed for any taxable year ending after the | ||||||
24 | revocation date, as stated in such notification. If any credit | ||||||
25 | has been allowed with respect to a certification for a taxable | ||||||
26 | year ending after the revocation date, any refund paid to the |
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1 | taxpayer for that taxable year shall, to the extent of that | ||||||
2 | credit allowed, be an erroneous refund within the meaning of | ||||||
3 | Section 912 of this Act. | ||||||
4 | Section 5. The Use Tax Act is amended by changing Section | ||||||
5 | 3-5 as follows:
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6 | (35 ILCS 105/3-5)
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7 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
8 | personal property is exempt from the tax imposed by this Act:
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9 | (1) Personal property purchased from a corporation, | ||||||
10 | society, association,
foundation, institution, or | ||||||
11 | organization, other than a limited liability
company, that is | ||||||
12 | organized and operated as a not-for-profit service enterprise
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13 | for the benefit of persons 65 years of age or older if the | ||||||
14 | personal property was not purchased by the enterprise for the | ||||||
15 | purpose of resale by the
enterprise.
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16 | (2) Personal property purchased by a not-for-profit | ||||||
17 | Illinois county
fair association for use in conducting, | ||||||
18 | operating, or promoting the
county fair.
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19 | (3) Personal property purchased by a not-for-profit
arts or | ||||||
20 | cultural organization that establishes, by proof required by | ||||||
21 | the
Department by
rule, that it has received an exemption under | ||||||
22 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
23 | organized and operated primarily for the
presentation
or | ||||||
24 | support of arts or cultural programming, activities, or |
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1 | services. These
organizations include, but are not limited to, | ||||||
2 | music and dramatic arts
organizations such as symphony | ||||||
3 | orchestras and theatrical groups, arts and
cultural service | ||||||
4 | organizations, local arts councils, visual arts organizations,
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5 | and media arts organizations.
On and after July 1, 2001 (the | ||||||
6 | effective date of Public Act 92-35), however, an entity | ||||||
7 | otherwise eligible for this exemption shall not
make tax-free | ||||||
8 | purchases unless it has an active identification number issued | ||||||
9 | by
the Department.
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10 | (4) Personal property purchased by a governmental body, by | ||||||
11 | a
corporation, society, association, foundation, or | ||||||
12 | institution organized and
operated exclusively for charitable, | ||||||
13 | religious, or educational purposes, or
by a not-for-profit | ||||||
14 | corporation, society, association, foundation,
institution, or | ||||||
15 | organization that has no compensated officers or employees
and | ||||||
16 | that is organized and operated primarily for the recreation of | ||||||
17 | persons
55 years of age or older. A limited liability company | ||||||
18 | may qualify for the
exemption under this paragraph only if the | ||||||
19 | limited liability company is
organized and operated | ||||||
20 | exclusively for educational purposes. On and after July
1, | ||||||
21 | 1987, however, no entity otherwise eligible for this exemption | ||||||
22 | shall make
tax-free purchases unless it has an active exemption | ||||||
23 | identification number
issued by the Department.
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24 | (5) Until July 1, 2003, a passenger car that is a | ||||||
25 | replacement vehicle to
the extent that the
purchase price of | ||||||
26 | the car is subject to the Replacement Vehicle Tax.
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1 | (6) Until July 1, 2003 and beginning again on September 1, | ||||||
2 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
3 | equipment, including
repair and replacement
parts, both new and | ||||||
4 | used, and including that manufactured on special order,
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5 | certified by the purchaser to be used primarily for graphic | ||||||
6 | arts production,
and including machinery and equipment | ||||||
7 | purchased for lease.
Equipment includes chemicals or chemicals | ||||||
8 | acting as catalysts but only if
the
chemicals or chemicals | ||||||
9 | acting as catalysts effect a direct and immediate change
upon a | ||||||
10 | graphic arts product. Beginning on July 1, 2017, graphic arts | ||||||
11 | machinery and equipment is included in the manufacturing and | ||||||
12 | assembling machinery and equipment exemption under paragraph | ||||||
13 | (18).
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14 | (7) Farm chemicals.
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15 | (8) Legal tender, currency, medallions, or gold or silver | ||||||
16 | coinage issued by
the State of Illinois, the government of the | ||||||
17 | United States of America, or the
government of any foreign | ||||||
18 | country, and bullion.
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19 | (9) Personal property purchased from a teacher-sponsored | ||||||
20 | student
organization affiliated with an elementary or | ||||||
21 | secondary school located in
Illinois.
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22 | (10) A motor vehicle that is used for automobile renting, | ||||||
23 | as defined in the
Automobile Renting Occupation and Use Tax | ||||||
24 | Act.
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25 | (11) Farm machinery and equipment, both new and used,
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26 | including that manufactured on special order, certified by the |
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1 | purchaser
to be used primarily for production agriculture or | ||||||
2 | State or federal
agricultural programs, including individual | ||||||
3 | replacement parts for
the machinery and equipment, including | ||||||
4 | machinery and equipment
purchased
for lease,
and including | ||||||
5 | implements of husbandry defined in Section 1-130 of
the | ||||||
6 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
7 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
8 | be registered
under Section 3-809 of the Illinois Vehicle Code,
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9 | but excluding other motor
vehicles required to be
registered | ||||||
10 | under the Illinois Vehicle Code.
Horticultural polyhouses or | ||||||
11 | hoop houses used for propagating, growing, or
overwintering | ||||||
12 | plants shall be considered farm machinery and equipment under
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13 | this item (11).
Agricultural chemical tender tanks and dry | ||||||
14 | boxes shall include units sold
separately from a motor vehicle | ||||||
15 | required to be licensed and units sold mounted
on a motor | ||||||
16 | vehicle required to be licensed if the selling price of the | ||||||
17 | tender
is separately stated.
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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,
seeders, | ||||||
22 | or spreaders.
Precision farming equipment includes, but is not | ||||||
23 | limited to, soil testing
sensors, computers, monitors, | ||||||
24 | software, global positioning
and mapping systems, and other | ||||||
25 | such equipment.
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26 | Farm machinery and equipment also includes computers, |
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1 | sensors, software, and
related equipment used primarily in the
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2 | computer-assisted operation of production agriculture | ||||||
3 | facilities, equipment,
and
activities such as, but not limited | ||||||
4 | to,
the collection, monitoring, and correlation of
animal and | ||||||
5 | crop data for the purpose of
formulating animal diets and | ||||||
6 | agricultural chemicals. This item (11) is exempt
from the | ||||||
7 | provisions of
Section 3-90.
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8 | (12) Until June 30, 2013, fuel and petroleum products sold | ||||||
9 | to or used by an air common
carrier, certified by the carrier | ||||||
10 | to be used for consumption, shipment, or
storage in the conduct | ||||||
11 | of its business as an air common carrier, for a
flight destined | ||||||
12 | for or returning from a location or locations
outside the | ||||||
13 | United States without regard to previous or subsequent domestic
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14 | stopovers.
| ||||||
15 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
16 | or used by an air carrier, certified by the carrier to be used | ||||||
17 | for consumption, shipment, or storage in the conduct of its | ||||||
18 | business as an air common carrier, for a flight that (i) is | ||||||
19 | engaged in foreign trade or is engaged in trade between the | ||||||
20 | United States and any of its possessions and (ii) transports at | ||||||
21 | least one individual or package for hire from the city of | ||||||
22 | origination to the city of final destination on the same | ||||||
23 | aircraft, without regard to a change in the flight number of | ||||||
24 | that aircraft. | ||||||
25 | (13) Proceeds of mandatory service charges separately
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26 | stated on customers' bills for the purchase and consumption of |
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1 | food and
beverages purchased at retail from a retailer, to the | ||||||
2 | extent that the proceeds
of the service charge are in fact | ||||||
3 | turned over as tips or as a substitute
for tips to the | ||||||
4 | employees who participate directly in preparing, serving,
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5 | hosting or cleaning up the food or beverage function with | ||||||
6 | respect to which
the service charge is imposed.
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7 | (14) Until July 1, 2003, oil field exploration, drilling, | ||||||
8 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
9 | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | ||||||
10 | tubular goods,
including casing and drill strings, (iii) pumps | ||||||
11 | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | ||||||
12 | individual replacement part for oil
field exploration, | ||||||
13 | drilling, and production equipment, and (vi) machinery and
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14 | equipment purchased
for lease; but excluding motor vehicles | ||||||
15 | required to be registered under the
Illinois Vehicle Code.
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16 | (15) Photoprocessing machinery and equipment, including | ||||||
17 | repair and
replacement parts, both new and used, including that
| ||||||
18 | manufactured on special order, certified by the purchaser to be | ||||||
19 | used
primarily for photoprocessing, and including
| ||||||
20 | photoprocessing machinery and equipment purchased for lease.
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21 | (16) Until July 1, 2023, coal and aggregate exploration, | ||||||
22 | mining, off-highway hauling,
processing, maintenance, and | ||||||
23 | reclamation equipment,
including replacement parts and | ||||||
24 | equipment, and
including equipment purchased for lease, but | ||||||
25 | excluding motor
vehicles required to be registered under the | ||||||
26 | Illinois Vehicle Code. The changes made to this Section by |
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1 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
2 | for credit or refund is allowed on or after August 16, 2013 | ||||||
3 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
4 | during the period beginning July 1, 2003 and ending on August | ||||||
5 | 16, 2013 (the effective date of Public Act 98-456).
| ||||||
6 | (17) Until July 1, 2003, distillation machinery and | ||||||
7 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
8 | retailer, certified by the user to be used
only for the | ||||||
9 | production of ethyl alcohol that will be used for consumption
| ||||||
10 | as motor fuel or as a component of motor fuel for the personal | ||||||
11 | use of the
user, and not subject to sale or resale.
| ||||||
12 | (18) Manufacturing and assembling machinery and equipment | ||||||
13 | used
primarily in the process of manufacturing or assembling | ||||||
14 | tangible
personal property for wholesale or retail sale or | ||||||
15 | lease, whether that sale
or lease is made directly by the | ||||||
16 | manufacturer or by some other person,
whether the materials | ||||||
17 | used in the process are
owned by the manufacturer or some other | ||||||
18 | person, or whether that sale or
lease is made apart from or as | ||||||
19 | an incident to the seller's engaging in
the service occupation | ||||||
20 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
21 | other similar items of no commercial value on
special order for | ||||||
22 | a particular purchaser. The exemption provided by this | ||||||
23 | paragraph (18) does not include machinery and equipment used in | ||||||
24 | (i) the generation of electricity for wholesale or retail sale; | ||||||
25 | (ii) the generation or treatment of natural or artificial gas | ||||||
26 | for wholesale or retail sale that is delivered to customers |
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1 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
2 | water for wholesale or retail sale that is delivered to | ||||||
3 | customers through pipes, pipelines, or mains. The provisions of | ||||||
4 | Public Act 98-583 are declaratory of existing law as to the | ||||||
5 | meaning and scope of this exemption. Beginning on July 1, 2017, | ||||||
6 | the exemption provided by this paragraph (18) includes, but is | ||||||
7 | not limited to, graphic arts machinery and equipment, as | ||||||
8 | defined in paragraph (6) of this Section.
| ||||||
9 | (19) Personal property delivered to a purchaser or | ||||||
10 | purchaser's donee
inside Illinois when the purchase order for | ||||||
11 | that personal property was
received by a florist located | ||||||
12 | outside Illinois who has a florist located
inside Illinois | ||||||
13 | deliver the personal property.
| ||||||
14 | (20) Semen used for artificial insemination of livestock | ||||||
15 | for direct
agricultural production.
| ||||||
16 | (21) Horses, or interests in horses, registered with and | ||||||
17 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
18 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
19 | Horse Association, United States
Trotting Association, or | ||||||
20 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
21 | racing for prizes. This item (21) is exempt from the provisions | ||||||
22 | of Section 3-90, and the exemption provided for under this item | ||||||
23 | (21) applies for all periods beginning May 30, 1995, but no | ||||||
24 | claim for credit or refund is allowed on or after January 1, | ||||||
25 | 2008
for such taxes paid during the period beginning May 30, | ||||||
26 | 2000 and ending on January 1, 2008.
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1 | (22) Computers and communications equipment utilized for | ||||||
2 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
3 | analysis, or treatment of hospital patients purchased by a | ||||||
4 | lessor who leases
the
equipment, under a lease of one year or | ||||||
5 | longer executed or in effect at the
time the lessor would | ||||||
6 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
7 | hospital
that has been issued an active tax exemption | ||||||
8 | identification number by
the
Department under Section 1g of the | ||||||
9 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
10 | manner that does not qualify for
this exemption or is used in | ||||||
11 | any other non-exempt manner, the lessor
shall be liable for the
| ||||||
12 | tax imposed under this Act or the Service Use Tax Act, as the | ||||||
13 | case may
be, based on the fair market value of the property at | ||||||
14 | the time the
non-qualifying use occurs. No lessor shall collect | ||||||
15 | or attempt to collect an
amount (however
designated) that | ||||||
16 | purports to reimburse that lessor for the tax imposed by this
| ||||||
17 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
18 | has not been
paid by the lessor. If a lessor improperly | ||||||
19 | collects any such amount from the
lessee, the lessee shall have | ||||||
20 | a legal right to claim a refund of that amount
from the lessor. | ||||||
21 | If, however, that amount is not refunded to the lessee for
any | ||||||
22 | reason, the lessor is liable to pay that amount to the | ||||||
23 | Department.
| ||||||
24 | (23) Personal property purchased by a lessor who leases the
| ||||||
25 | property, under
a
lease of
one year or longer executed or in | ||||||
26 | effect at the time
the lessor would otherwise be subject to the |
| |||||||
| |||||||
1 | tax imposed by this Act,
to a governmental body
that has been | ||||||
2 | issued an active sales tax exemption identification number by | ||||||
3 | the
Department under Section 1g of the Retailers' Occupation | ||||||
4 | Tax Act.
If the
property is leased in a manner that does not | ||||||
5 | qualify for
this exemption
or used in any other non-exempt | ||||||
6 | manner, the lessor shall be liable for the
tax imposed under | ||||||
7 | this Act or the Service Use Tax Act, as the case may
be, based | ||||||
8 | on the fair market value of the property at the time the
| ||||||
9 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
10 | to collect an
amount (however
designated) that purports to | ||||||
11 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
12 | Service Use Tax Act, as the case may be, if the tax has not been
| ||||||
13 | paid by the lessor. If a lessor improperly collects any such | ||||||
14 | amount from the
lessee, the lessee shall have a legal right to | ||||||
15 | claim a refund of that amount
from the lessor. If, however, | ||||||
16 | that amount is not refunded to the lessee for
any reason, the | ||||||
17 | lessor is liable to pay that amount to the Department.
| ||||||
18 | (24) Beginning with taxable years ending on or after | ||||||
19 | December
31, 1995
and
ending with taxable years ending on or | ||||||
20 | before December 31, 2004,
personal property that is
donated for | ||||||
21 | disaster relief to be used in a State or federally declared
| ||||||
22 | disaster area in Illinois or bordering Illinois by a | ||||||
23 | manufacturer or retailer
that is registered in this State to a | ||||||
24 | corporation, society, association,
foundation, or institution | ||||||
25 | that has been issued a sales tax exemption
identification | ||||||
26 | number by the Department that assists victims of the disaster
|
| |||||||
| |||||||
1 | who reside within the declared disaster area.
| ||||||
2 | (25) Beginning with taxable years ending on or after | ||||||
3 | December
31, 1995 and
ending with taxable years ending on or | ||||||
4 | before December 31, 2004, personal
property that is used in the | ||||||
5 | performance of infrastructure repairs in this
State, including | ||||||
6 | but not limited to municipal roads and streets, access roads,
| ||||||
7 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
8 | line extensions,
water distribution and purification | ||||||
9 | facilities, storm water drainage and
retention facilities, and | ||||||
10 | sewage treatment facilities, resulting from a State
or | ||||||
11 | federally declared disaster in Illinois or bordering Illinois | ||||||
12 | when such
repairs are initiated on facilities located in the | ||||||
13 | declared disaster area
within 6 months after the disaster.
| ||||||
14 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
15 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
16 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
17 | provisions
of
Section 3-90.
| ||||||
18 | (27) A motor vehicle, as that term is defined in Section | ||||||
19 | 1-146
of the
Illinois
Vehicle Code, that is donated to a | ||||||
20 | corporation, limited liability company,
society, association, | ||||||
21 | foundation, or institution that is determined by the
Department | ||||||
22 | to be organized and operated exclusively for educational | ||||||
23 | purposes.
For purposes of this exemption, "a corporation, | ||||||
24 | limited liability company,
society, association, foundation, | ||||||
25 | or institution organized and operated
exclusively for | ||||||
26 | educational purposes" means all tax-supported public schools,
|
| |||||||
| |||||||
1 | private schools that offer systematic instruction in useful | ||||||
2 | branches of
learning by methods common to public schools and | ||||||
3 | that compare favorably in
their scope and intensity with the | ||||||
4 | course of study presented in tax-supported
schools, and | ||||||
5 | vocational or technical schools or institutes organized and
| ||||||
6 | operated exclusively to provide a course of study of not less | ||||||
7 | than 6 weeks
duration and designed to prepare individuals to | ||||||
8 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
9 | industrial, business, or commercial
occupation.
| ||||||
10 | (28) Beginning January 1, 2000, personal property, | ||||||
11 | including
food,
purchased through fundraising
events for the | ||||||
12 | benefit of
a public or private elementary or
secondary school, | ||||||
13 | a group of those schools, or one or more school
districts if | ||||||
14 | the events are
sponsored by an entity recognized by the school | ||||||
15 | district that consists
primarily of volunteers and includes
| ||||||
16 | parents and teachers of the school children. This paragraph | ||||||
17 | does not apply
to fundraising
events (i) for the benefit of | ||||||
18 | private home instruction or (ii)
for which the fundraising | ||||||
19 | entity purchases the personal property sold at
the events from | ||||||
20 | another individual or entity that sold the property for the
| ||||||
21 | purpose of resale by the fundraising entity and that
profits | ||||||
22 | from the sale to the
fundraising entity. This paragraph is | ||||||
23 | exempt
from the provisions
of Section 3-90.
| ||||||
24 | (29) Beginning January 1, 2000 and through December 31, | ||||||
25 | 2001, new or
used automatic vending
machines that prepare and | ||||||
26 | serve hot food and beverages, including coffee, soup,
and
other |
| |||||||
| |||||||
1 | items, and replacement parts for these machines.
Beginning | ||||||
2 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
3 | for machines used in
commercial, coin-operated amusement and | ||||||
4 | vending business if a use or occupation
tax is paid on the | ||||||
5 | gross receipts derived from the use of the commercial,
| ||||||
6 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
7 | is exempt from the provisions of Section 3-90.
| ||||||
8 | (30) Beginning January 1, 2001 and through June 30, 2016, | ||||||
9 | food for human consumption that is to be consumed off the | ||||||
10 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
11 | drinks, and food that
has been prepared for immediate | ||||||
12 | consumption) and prescription and
nonprescription medicines, | ||||||
13 | drugs, medical appliances, and insulin, urine
testing | ||||||
14 | materials, syringes, and needles used by diabetics, for human | ||||||
15 | use, when
purchased for use by a person receiving medical | ||||||
16 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
17 | resides in a licensed long-term care facility,
as defined in | ||||||
18 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
19 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
20 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
21 | (31) Beginning on August 2, 2001 (the effective date of | ||||||
22 | Public Act 92-227),
computers and communications equipment
| ||||||
23 | utilized for any hospital purpose and equipment used in the | ||||||
24 | diagnosis,
analysis, or treatment of hospital patients | ||||||
25 | purchased by a lessor who leases
the equipment, under a lease | ||||||
26 | of one year or longer executed or in effect at the
time the |
| |||||||
| |||||||
1 | lessor would otherwise be subject to the tax imposed by this | ||||||
2 | Act, to a
hospital that has been issued an active tax exemption | ||||||
3 | identification number by
the Department under Section 1g of the | ||||||
4 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
5 | manner that does not qualify for this exemption or is
used in | ||||||
6 | any other nonexempt manner, the lessor shall be liable for the | ||||||
7 | tax
imposed under this Act or the Service Use Tax Act, as the | ||||||
8 | case may be, based on
the fair market value of the property at | ||||||
9 | the time the nonqualifying use
occurs. No lessor shall collect | ||||||
10 | or attempt to collect an amount (however
designated) that | ||||||
11 | purports to reimburse that lessor for the tax imposed by this
| ||||||
12 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
13 | has not been
paid by the lessor. If a lessor improperly | ||||||
14 | collects any such amount from the
lessee, the lessee shall have | ||||||
15 | a legal right to claim a refund of that amount
from the lessor. | ||||||
16 | If, however, that amount is not refunded to the lessee for
any | ||||||
17 | reason, the lessor is liable to pay that amount to the | ||||||
18 | Department.
This paragraph is exempt from the provisions of | ||||||
19 | Section 3-90.
| ||||||
20 | (32) Beginning on August 2, 2001 (the effective date of | ||||||
21 | Public Act 92-227),
personal property purchased by a lessor who | ||||||
22 | leases the property,
under a lease of one year or longer | ||||||
23 | executed or in effect at the time the
lessor would otherwise be | ||||||
24 | subject to the tax imposed by this Act, to a
governmental body | ||||||
25 | that has been issued an active sales tax exemption
| ||||||
26 | identification number by the Department under Section 1g of the |
| |||||||
| |||||||
1 | Retailers'
Occupation Tax Act. If the property is leased in a | ||||||
2 | manner that does not
qualify for this exemption or used in any | ||||||
3 | other nonexempt manner, the lessor
shall be liable for the tax | ||||||
4 | imposed under this Act or the Service Use Tax Act,
as the case | ||||||
5 | may be, based on the fair market value of the property at the | ||||||
6 | time
the nonqualifying use occurs. No lessor shall collect or | ||||||
7 | attempt to collect
an amount (however designated) that purports | ||||||
8 | to reimburse that lessor for the
tax imposed by this Act or the | ||||||
9 | Service Use Tax Act, as the case may be, if the
tax has not been | ||||||
10 | paid by the lessor. If a lessor improperly collects any such
| ||||||
11 | amount from the lessee, the lessee shall have a legal right to | ||||||
12 | claim a refund
of that amount from the lessor. If, however, | ||||||
13 | that amount is not refunded to
the lessee for any reason, the | ||||||
14 | lessor is liable to pay that amount to the
Department. This | ||||||
15 | paragraph is exempt from the provisions of Section 3-90.
| ||||||
16 | (33) On and after July 1, 2003 and through June 30, 2004, | ||||||
17 | the use in this State of motor vehicles of
the second division | ||||||
18 | with a gross vehicle weight in excess of 8,000 pounds and
that | ||||||
19 | are subject to the commercial distribution fee imposed under | ||||||
20 | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | ||||||
21 | 1, 2004 and through June 30, 2005, the use in this State of | ||||||
22 | motor vehicles of the second division: (i) with a gross vehicle | ||||||
23 | weight rating in excess of 8,000 pounds; (ii) that are subject | ||||||
24 | to the commercial distribution fee imposed under Section | ||||||
25 | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | ||||||
26 | primarily used for commercial purposes. Through June 30, 2005, |
| |||||||
| |||||||
1 | this exemption applies to repair and
replacement parts added | ||||||
2 | after the initial purchase of such a motor vehicle if
that | ||||||
3 | motor
vehicle is used in a manner that would qualify for the | ||||||
4 | rolling stock exemption
otherwise provided for in this Act. For | ||||||
5 | purposes of this paragraph, the term "used for commercial | ||||||
6 | purposes" means the transportation of persons or property in | ||||||
7 | furtherance of any commercial or industrial enterprise, | ||||||
8 | whether for-hire or not.
| ||||||
9 | (34) Beginning January 1, 2008, tangible personal property | ||||||
10 | used in the construction or maintenance of a community water | ||||||
11 | supply, as defined under Section 3.145 of the Environmental | ||||||
12 | Protection Act, that is operated by a not-for-profit | ||||||
13 | corporation that holds a valid water supply permit issued under | ||||||
14 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
15 | exempt from the provisions of Section 3-90. | ||||||
16 | (35) Beginning January 1, 2010, materials, parts, | ||||||
17 | equipment, components, and furnishings incorporated into or | ||||||
18 | upon an aircraft as part of the modification, refurbishment, | ||||||
19 | completion, replacement, repair, or maintenance of the | ||||||
20 | aircraft. This exemption includes consumable supplies used in | ||||||
21 | the modification, refurbishment, completion, replacement, | ||||||
22 | repair, and maintenance of aircraft, but excludes any | ||||||
23 | materials, parts, equipment, components, and consumable | ||||||
24 | supplies used in the modification, replacement, repair, and | ||||||
25 | maintenance of aircraft engines or power plants, whether such | ||||||
26 | engines or power plants are installed or uninstalled upon any |
| |||||||
| |||||||
1 | such aircraft. "Consumable supplies" include, but are not | ||||||
2 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
3 | lubricants, cleaning solution, latex gloves, and protective | ||||||
4 | films. This exemption applies only to the use of qualifying | ||||||
5 | tangible personal property by persons who modify, refurbish, | ||||||
6 | complete, repair, replace, or maintain aircraft and who (i) | ||||||
7 | hold an Air Agency Certificate and are empowered to operate an | ||||||
8 | approved repair station by the Federal Aviation | ||||||
9 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
10 | operations in accordance with Part 145 of the Federal Aviation | ||||||
11 | Regulations. The exemption does not include aircraft operated | ||||||
12 | by a commercial air carrier providing scheduled passenger air | ||||||
13 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
14 | of the Federal Aviation Regulations. The changes made to this | ||||||
15 | paragraph (35) by Public Act 98-534 are declarative of existing | ||||||
16 | law. | ||||||
17 | (36) Tangible personal property purchased by a | ||||||
18 | public-facilities corporation, as described in Section | ||||||
19 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
20 | constructing or furnishing a municipal convention hall, but | ||||||
21 | only if the legal title to the municipal convention hall is | ||||||
22 | transferred to the municipality without any further | ||||||
23 | consideration by or on behalf of the municipality at the time | ||||||
24 | of the completion of the municipal convention hall or upon the | ||||||
25 | retirement or redemption of any bonds or other debt instruments | ||||||
26 | issued by the public-facilities corporation in connection with |
| |||||||
| |||||||
1 | the development of the municipal convention hall. This | ||||||
2 | exemption includes existing public-facilities corporations as | ||||||
3 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
4 | This paragraph is exempt from the provisions of Section 3-90. | ||||||
5 | (37) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
6 | and menstrual cups. | ||||||
7 | (38) Merchandise that is subject to the Rental Purchase | ||||||
8 | Agreement Occupation and Use Tax. The purchaser must certify | ||||||
9 | that the item is purchased to be rented subject to a rental | ||||||
10 | purchase agreement, as defined in the Rental Purchase Agreement | ||||||
11 | Act, and provide proof of registration under the Rental | ||||||
12 | Purchase Agreement Occupation and Use Tax Act. This paragraph | ||||||
13 | is exempt from the provisions of Section 3-90. | ||||||
14 | (39) Tangible personal property purchased by a purchaser | ||||||
15 | who is exempt from the tax imposed by this Act by operation of | ||||||
16 | federal law. This paragraph is exempt from the provisions of | ||||||
17 | Section 3-90. | ||||||
18 | (40) Beginning on January 1, 2020, qualified tangible | ||||||
19 | personal property used in the construction or operation of a | ||||||
20 | data center that has been granted a certificate of exemption by | ||||||
21 | the Department of Commerce and Economic Opportunity, whether | ||||||
22 | that tangible personal property is purchased by the owner, | ||||||
23 | operator, or tenant of the data center or by a contractor or | ||||||
24 | subcontractor of the owner, operator, or tenant. Data centers | ||||||
25 | that would have qualified for a certificate of exemption prior | ||||||
26 | to January 1, 2020 had this amendatory Act of the 101st General |
| |||||||
| |||||||
1 | Assembly been in effect, may apply for and obtain an exemption | ||||||
2 | for subsequent purchases of computer equipment or enabling | ||||||
3 | software purchased or leased to upgrade, supplement, or replace | ||||||
4 | computer equipment or enabling software purchased or leased in | ||||||
5 | the original investment that would have qualified. | ||||||
6 | The Department of Commerce and Economic Opportunity shall | ||||||
7 | grant a certificate of exemption under this item (40) to | ||||||
8 | qualified data centers as defined by Section 605-1025 of the | ||||||
9 | Department of Commerce and Economic Opportunity Law of the
| ||||||
10 | Civil Administrative Code of Illinois. | ||||||
11 | For the purposes of this item (40): | ||||||
12 | "Data center" means a building or a series of buildings | ||||||
13 | rehabilitated or constructed to house working servers in | ||||||
14 | one physical location or multiple sites within the State of | ||||||
15 | Illinois. | ||||||
16 | "Qualified tangible personal property" means: | ||||||
17 | electrical systems and equipment; climate control and | ||||||
18 | chilling equipment and systems; mechanical systems and | ||||||
19 | equipment; monitoring and secure systems; emergency | ||||||
20 | generators; hardware; computers; servers; data storage | ||||||
21 | devices; network connectivity equipment; racks; cabinets; | ||||||
22 | telecommunications cabling infrastructure; raised floor | ||||||
23 | systems; peripheral components or systems; software; | ||||||
24 | mechanical, electrical, or plumbing systems; battery | ||||||
25 | systems; cooling systems and towers; temperature control | ||||||
26 | systems; other cabling; and other data center |
| |||||||
| |||||||
1 | infrastructure equipment and systems necessary to operate | ||||||
2 | qualified tangible personal property, including fixtures; | ||||||
3 | and component parts of any of the foregoing, including | ||||||
4 | installation, maintenance, repair, refurbishment, and | ||||||
5 | replacement of qualified tangible personal property to | ||||||
6 | generate, transform, transmit, distribute, or manage | ||||||
7 | electricity necessary to operate qualified tangible | ||||||
8 | personal property; and all other tangible personal | ||||||
9 | property that is essential to the operations of a computer | ||||||
10 | data center. The term "qualified tangible personal | ||||||
11 | property" also includes building materials physically | ||||||
12 | incorporated in to the qualifying data center. To document | ||||||
13 | the exemption allowed under this Section, the retailer must | ||||||
14 | obtain from the purchaser a copy of the certificate of | ||||||
15 | eligibility issued by the Department of Commerce and | ||||||
16 | Economic Opportunity. | ||||||
17 | This item (40) is exempt from the provisions of Section | ||||||
18 | 3-90. | ||||||
19 | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | ||||||
20 | 100-22, eff. 7-6-17; 100-437, eff. 1-1-18; 100-594, eff. | ||||||
21 | 6-29-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; revised | ||||||
22 | 1-8-19.)
| ||||||
23 | Section 10. The Service Use Tax Act is amended by changing | ||||||
24 | Section 3-5 as follows:
|
| |||||||
| |||||||
1 | (35 ILCS 110/3-5)
| ||||||
2 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
3 | personal property
is exempt from the tax imposed by this Act:
| ||||||
4 | (1) Personal property purchased from a corporation, | ||||||
5 | society,
association, foundation, institution, or | ||||||
6 | organization, other than a limited
liability company, that is | ||||||
7 | organized and operated as a not-for-profit service
enterprise | ||||||
8 | for the benefit of persons 65 years of age or older if the | ||||||
9 | personal
property was not purchased by the enterprise for the | ||||||
10 | purpose of resale by the
enterprise.
| ||||||
11 | (2) Personal property purchased by a non-profit Illinois | ||||||
12 | county fair
association for use in conducting, operating, or | ||||||
13 | promoting the county fair.
| ||||||
14 | (3) Personal property purchased by a not-for-profit arts
or | ||||||
15 | cultural
organization that establishes, by proof required by | ||||||
16 | the Department by rule,
that it has received an exemption under | ||||||
17 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
18 | organized and operated primarily for the
presentation
or | ||||||
19 | support of arts or cultural programming, activities, or | ||||||
20 | services. These
organizations include, but are not limited to, | ||||||
21 | music and dramatic arts
organizations such as symphony | ||||||
22 | orchestras and theatrical groups, arts and
cultural service | ||||||
23 | organizations, local arts councils, visual arts organizations,
| ||||||
24 | and media arts organizations.
On and after July 1, 2001 ( the | ||||||
25 | effective date of Public Act 92-35) this amendatory Act of the | ||||||
26 | 92nd General
Assembly , however, an entity otherwise eligible |
| |||||||
| |||||||
1 | for this exemption shall not
make tax-free purchases unless it | ||||||
2 | has an active identification number issued by
the Department.
| ||||||
3 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
4 | coinage issued
by the State of Illinois, the government of the | ||||||
5 | United States of America,
or the government of any foreign | ||||||
6 | country, and bullion.
| ||||||
7 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
8 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
9 | equipment, including
repair and
replacement parts, both new and | ||||||
10 | used, and including that manufactured on
special order or | ||||||
11 | purchased for lease, certified by the purchaser to be used
| ||||||
12 | primarily for graphic arts production.
Equipment includes | ||||||
13 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
14 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
15 | immediate
change upon a graphic arts product. Beginning on July | ||||||
16 | 1, 2017, graphic arts machinery and equipment is included in | ||||||
17 | the manufacturing and assembling machinery and equipment | ||||||
18 | exemption under Section 2 of this Act.
| ||||||
19 | (6) Personal property purchased from a teacher-sponsored | ||||||
20 | student
organization affiliated with an elementary or | ||||||
21 | secondary school located
in Illinois.
| ||||||
22 | (7) Farm machinery and equipment, both new and used, | ||||||
23 | including that
manufactured on special order, certified by the | ||||||
24 | purchaser to be used
primarily for production agriculture or | ||||||
25 | State or federal agricultural
programs, including individual | ||||||
26 | replacement parts for the machinery and
equipment, including |
| |||||||
| |||||||
1 | machinery and equipment purchased for lease,
and including | ||||||
2 | implements of husbandry defined in Section 1-130 of
the | ||||||
3 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
4 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
5 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
6 | but
excluding other motor vehicles required to be registered | ||||||
7 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
8 | hoop houses used for propagating, growing, or
overwintering | ||||||
9 | plants shall be considered farm machinery and equipment under
| ||||||
10 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
11 | shall include units sold
separately from a motor vehicle | ||||||
12 | required to be licensed and units sold mounted
on a motor | ||||||
13 | vehicle required to be licensed if the selling price of the | ||||||
14 | tender
is separately stated.
| ||||||
15 | Farm machinery and equipment shall include precision | ||||||
16 | farming equipment
that is
installed or purchased to be | ||||||
17 | installed on farm machinery and equipment
including, but not | ||||||
18 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
19 | or spreaders.
Precision farming equipment includes, but is not | ||||||
20 | limited to,
soil testing sensors, computers, monitors, | ||||||
21 | software, global positioning
and mapping systems, and other | ||||||
22 | such equipment.
| ||||||
23 | Farm machinery and equipment also includes computers, | ||||||
24 | sensors, software, and
related equipment used primarily in the
| ||||||
25 | computer-assisted operation of production agriculture | ||||||
26 | facilities, equipment,
and activities such as, but
not limited |
| |||||||
| |||||||
1 | to,
the collection, monitoring, and correlation of
animal and | ||||||
2 | crop data for the purpose of
formulating animal diets and | ||||||
3 | agricultural chemicals. This item (7) is exempt
from the | ||||||
4 | provisions of
Section 3-75.
| ||||||
5 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
6 | to or used by an air common
carrier, certified by the carrier | ||||||
7 | to be used for consumption, shipment, or
storage in the conduct | ||||||
8 | of its business as an air common carrier, for a
flight destined | ||||||
9 | for or returning from a location or locations
outside the | ||||||
10 | United States without regard to previous or subsequent domestic
| ||||||
11 | stopovers.
| ||||||
12 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
13 | or used by an air carrier, certified by the carrier to be used | ||||||
14 | for consumption, shipment, or storage in the conduct of its | ||||||
15 | business as an air common carrier, for a flight that (i) is | ||||||
16 | engaged in foreign trade or is engaged in trade between the | ||||||
17 | United States and any of its possessions and (ii) transports at | ||||||
18 | least one individual or package for hire from the city of | ||||||
19 | origination to the city of final destination on the same | ||||||
20 | aircraft, without regard to a change in the flight number of | ||||||
21 | that aircraft. | ||||||
22 | (9) Proceeds of mandatory service charges separately | ||||||
23 | stated on
customers' bills for the purchase and consumption of | ||||||
24 | food and beverages
acquired as an incident to the purchase of a | ||||||
25 | service from a serviceman, to
the extent that the proceeds of | ||||||
26 | the service charge are in fact
turned over as tips or as a |
| |||||||
| |||||||
1 | substitute for tips to the employees who
participate directly | ||||||
2 | in preparing, serving, hosting or cleaning up the
food or | ||||||
3 | beverage function with respect to which the service charge is | ||||||
4 | imposed.
| ||||||
5 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
6 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
7 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
8 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
9 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
10 | individual replacement part for oil field exploration,
| ||||||
11 | drilling, and production equipment, and (vi) machinery and | ||||||
12 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
13 | required to be registered under the Illinois
Vehicle Code.
| ||||||
14 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
15 | and
equipment, including repair and replacement parts, both new | ||||||
16 | and
used, including that manufactured on special order, | ||||||
17 | certified by the
purchaser to be used primarily for | ||||||
18 | photoprocessing, and including
photoprocessing machinery and | ||||||
19 | equipment purchased for lease.
| ||||||
20 | (12) Until July 1, 2023, coal and aggregate exploration, | ||||||
21 | mining, off-highway hauling,
processing,
maintenance, and | ||||||
22 | reclamation equipment, including
replacement parts and | ||||||
23 | equipment, and including
equipment purchased for lease, but | ||||||
24 | excluding motor vehicles required to be
registered under the | ||||||
25 | Illinois Vehicle Code. The changes made to this Section by | ||||||
26 | Public Act 97-767 apply on and after July 1, 2003, but no claim |
| |||||||
| |||||||
1 | for credit or refund is allowed on or after August 16, 2013 | ||||||
2 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
3 | during the period beginning July 1, 2003 and ending on August | ||||||
4 | 16, 2013 (the effective date of Public Act 98-456).
| ||||||
5 | (13) Semen used for artificial insemination of livestock | ||||||
6 | for direct
agricultural production.
| ||||||
7 | (14) Horses, or interests in horses, registered with and | ||||||
8 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
9 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
10 | Horse Association, United States
Trotting Association, or | ||||||
11 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
12 | racing for prizes. This item (14) is exempt from the provisions | ||||||
13 | of Section 3-75, and the exemption provided for under this item | ||||||
14 | (14) applies for all periods beginning May 30, 1995, but no | ||||||
15 | claim for credit or refund is allowed on or after January 1, | ||||||
16 | 2008 ( the effective date of Public Act 95-88) this amendatory | ||||||
17 | Act of the 95th General Assembly for such taxes paid during the | ||||||
18 | period beginning May 30, 2000 and ending on January 1, 2008 | ||||||
19 | ( the effective date of Public Act 95-88) this amendatory Act of | ||||||
20 | the 95th General Assembly .
| ||||||
21 | (15) Computers and communications equipment utilized for | ||||||
22 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
23 | analysis, or treatment of hospital patients purchased by a | ||||||
24 | lessor who leases
the
equipment, under a lease of one year or | ||||||
25 | longer executed or in effect at the
time
the lessor would | ||||||
26 | otherwise be subject to the tax imposed by this Act,
to a
|
| |||||||
| |||||||
1 | hospital
that has been issued an active tax exemption | ||||||
2 | identification number by the
Department under Section 1g of the | ||||||
3 | Retailers' Occupation Tax Act.
If the
equipment is leased in a | ||||||
4 | manner that does not qualify for
this exemption
or is used in | ||||||
5 | any other non-exempt manner,
the lessor shall be liable for the
| ||||||
6 | tax imposed under this Act or the Use Tax Act, as the case may
| ||||||
7 | be, based on the fair market value of the property at the time | ||||||
8 | the
non-qualifying use occurs. No lessor shall collect or | ||||||
9 | attempt to collect an
amount (however
designated) that purports | ||||||
10 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
11 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
12 | the lessor. If a lessor improperly collects any such amount | ||||||
13 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
14 | refund of that amount
from the lessor. If, however, that amount | ||||||
15 | is not refunded to the lessee for
any reason, the lessor is | ||||||
16 | liable to pay that amount to the Department.
| ||||||
17 | (16) Personal property purchased by a lessor who leases the
| ||||||
18 | property, under
a
lease of one year or longer executed or in | ||||||
19 | effect at the time
the lessor would otherwise be subject to the | ||||||
20 | tax imposed by this Act,
to a governmental body
that has been | ||||||
21 | issued an active tax exemption identification number by the
| ||||||
22 | Department under Section 1g of the Retailers' Occupation Tax | ||||||
23 | Act.
If the
property is leased in a manner that does not | ||||||
24 | qualify for
this exemption
or is used in any other non-exempt | ||||||
25 | manner,
the lessor shall be liable for the
tax imposed under | ||||||
26 | this Act or the Use Tax Act, as the case may
be, based on the |
| |||||||
| |||||||
1 | fair market value of the property at the time the
| ||||||
2 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
3 | to collect an
amount (however
designated) that purports to | ||||||
4 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
5 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
6 | the lessor. If a lessor improperly collects any such amount | ||||||
7 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
8 | refund of that amount
from the lessor. If, however, that amount | ||||||
9 | is not refunded to the lessee for
any reason, the lessor is | ||||||
10 | liable to pay that amount to the Department.
| ||||||
11 | (17) Beginning with taxable years ending on or after | ||||||
12 | December
31,
1995
and
ending with taxable years ending on or | ||||||
13 | before December 31, 2004,
personal property that is
donated for | ||||||
14 | disaster relief to be used in a State or federally declared
| ||||||
15 | disaster area in Illinois or bordering Illinois by a | ||||||
16 | manufacturer or retailer
that is registered in this State to a | ||||||
17 | corporation, society, association,
foundation, or institution | ||||||
18 | that has been issued a sales tax exemption
identification | ||||||
19 | number by the Department that assists victims of the disaster
| ||||||
20 | who reside within the declared disaster area.
| ||||||
21 | (18) Beginning with taxable years ending on or after | ||||||
22 | December
31, 1995 and
ending with taxable years ending on or | ||||||
23 | before December 31, 2004, personal
property that is used in the | ||||||
24 | performance of infrastructure repairs in this
State, including | ||||||
25 | but not limited to municipal roads and streets, access roads,
| ||||||
26 | bridges, sidewalks, waste disposal systems, water and sewer |
| |||||||
| |||||||
1 | line extensions,
water distribution and purification | ||||||
2 | facilities, storm water drainage and
retention facilities, and | ||||||
3 | sewage treatment facilities, resulting from a State
or | ||||||
4 | federally declared disaster in Illinois or bordering Illinois | ||||||
5 | when such
repairs are initiated on facilities located in the | ||||||
6 | declared disaster area
within 6 months after the disaster.
| ||||||
7 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
8 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
9 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
10 | provisions
of
Section 3-75.
| ||||||
11 | (20) A motor vehicle, as that term is defined in Section | ||||||
12 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
13 | corporation, limited liability
company, society, association, | ||||||
14 | foundation, or institution that is determined by
the Department | ||||||
15 | to be organized and operated exclusively for educational
| ||||||
16 | purposes. For purposes of this exemption, "a corporation, | ||||||
17 | limited liability
company, society, association, foundation, | ||||||
18 | or institution organized and
operated
exclusively for | ||||||
19 | educational purposes" means all tax-supported public schools,
| ||||||
20 | private schools that offer systematic instruction in useful | ||||||
21 | branches of
learning by methods common to public schools and | ||||||
22 | that compare favorably in
their scope and intensity with the | ||||||
23 | course of study presented in tax-supported
schools, and | ||||||
24 | vocational or technical schools or institutes organized and
| ||||||
25 | operated exclusively to provide a course of study of not less | ||||||
26 | than 6 weeks
duration and designed to prepare individuals to |
| |||||||
| |||||||
1 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
2 | industrial, business, or commercial
occupation.
| ||||||
3 | (21) Beginning January 1, 2000, personal property, | ||||||
4 | including
food,
purchased through fundraising
events for the | ||||||
5 | benefit of
a public or private elementary or
secondary school, | ||||||
6 | a group of those schools, or one or more school
districts if | ||||||
7 | the events are
sponsored by an entity recognized by the school | ||||||
8 | district that consists
primarily of volunteers and includes
| ||||||
9 | parents and teachers of the school children. This paragraph | ||||||
10 | does not apply
to fundraising
events (i) for the benefit of | ||||||
11 | private home instruction or (ii)
for which the fundraising | ||||||
12 | entity purchases the personal property sold at
the events from | ||||||
13 | another individual or entity that sold the property for the
| ||||||
14 | purpose of resale by the fundraising entity and that
profits | ||||||
15 | from the sale to the
fundraising entity. This paragraph is | ||||||
16 | exempt
from the provisions
of Section 3-75.
| ||||||
17 | (22) Beginning January 1, 2000
and through December 31, | ||||||
18 | 2001, new or used automatic vending
machines that prepare and | ||||||
19 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
20 | items, and replacement parts for these machines.
Beginning | ||||||
21 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
22 | for machines used in
commercial, coin-operated
amusement
and | ||||||
23 | vending business if a use or occupation tax is paid on the | ||||||
24 | gross receipts
derived from
the use of the commercial, | ||||||
25 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
26 | is exempt from the provisions of Section 3-75.
|
| |||||||
| |||||||
1 | (23) Beginning August 23, 2001 and through June 30, 2016, | ||||||
2 | food for human consumption that is to be consumed off the
| ||||||
3 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
4 | drinks, and food that
has been prepared for immediate | ||||||
5 | consumption) and prescription and
nonprescription medicines, | ||||||
6 | drugs, medical appliances, and insulin, urine
testing | ||||||
7 | materials, syringes, and needles used by diabetics, for human | ||||||
8 | use, when
purchased for use by a person receiving medical | ||||||
9 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
10 | resides in a licensed long-term care facility,
as defined in | ||||||
11 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
12 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
13 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
14 | (24) Beginning on August 2, 2001 ( the effective date of | ||||||
15 | Public Act 92-227) this amendatory Act of the 92nd
General | ||||||
16 | Assembly , computers and communications equipment
utilized for | ||||||
17 | any hospital purpose and equipment used in the diagnosis,
| ||||||
18 | analysis, or treatment of hospital patients purchased by a | ||||||
19 | lessor who leases
the equipment, under a lease of one year or | ||||||
20 | longer executed or in effect at the
time the lessor would | ||||||
21 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
22 | hospital that has been issued an active tax exemption | ||||||
23 | identification number by
the Department under Section 1g of the | ||||||
24 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
25 | manner that does not qualify for this exemption or is
used in | ||||||
26 | any other nonexempt manner, the lessor shall be liable for the
|
| |||||||
| |||||||
1 | tax imposed under this Act or the Use Tax Act, as the case may | ||||||
2 | be, based on the
fair market value of the property at the time | ||||||
3 | the nonqualifying use occurs.
No lessor shall collect or | ||||||
4 | attempt to collect an amount (however
designated) that purports | ||||||
5 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
6 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
7 | the lessor. If a lessor improperly collects any such amount | ||||||
8 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
9 | refund of that amount
from the lessor. If, however, that amount | ||||||
10 | is not refunded to the lessee for
any reason, the lessor is | ||||||
11 | liable to pay that amount to the Department.
This paragraph is | ||||||
12 | exempt from the provisions of Section 3-75.
| ||||||
13 | (25) Beginning
on August 2, 2001 ( the effective date of | ||||||
14 | Public Act 92-227) this amendatory Act of the 92nd General | ||||||
15 | Assembly ,
personal property purchased by a lessor
who leases | ||||||
16 | the property, under a lease of one year or longer executed or | ||||||
17 | in
effect at the time the lessor would otherwise be subject to | ||||||
18 | the tax imposed by
this Act, to a governmental body that has | ||||||
19 | been issued an active tax exemption
identification number by | ||||||
20 | the Department under Section 1g of the Retailers'
Occupation | ||||||
21 | Tax Act. If the property is leased in a manner that does not
| ||||||
22 | qualify for this exemption or is used in any other nonexempt | ||||||
23 | manner, the
lessor shall be liable for the tax imposed under | ||||||
24 | this Act or the Use Tax Act,
as the case may be, based on the | ||||||
25 | fair market value of the property at the time
the nonqualifying | ||||||
26 | use occurs. No lessor shall collect or attempt to collect
an |
| |||||||
| |||||||
1 | amount (however designated) that purports to reimburse that | ||||||
2 | lessor for the
tax imposed by this Act or the Use Tax Act, as | ||||||
3 | the case may be, if the tax has
not been paid by the lessor. If | ||||||
4 | a lessor improperly collects any such amount
from the lessee, | ||||||
5 | the lessee shall have a legal right to claim a refund of that
| ||||||
6 | amount from the lessor. If, however, that amount is not | ||||||
7 | refunded to the lessee
for any reason, the lessor is liable to | ||||||
8 | pay that amount to the Department.
This paragraph is exempt | ||||||
9 | from the provisions of Section 3-75.
| ||||||
10 | (26) Beginning January 1, 2008, tangible personal property | ||||||
11 | used in the construction or maintenance of a community water | ||||||
12 | supply, as defined under Section 3.145 of the Environmental | ||||||
13 | Protection Act, that is operated by a not-for-profit | ||||||
14 | corporation that holds a valid water supply permit issued under | ||||||
15 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
16 | exempt from the provisions of Section 3-75.
| ||||||
17 | (27) Beginning January 1, 2010, materials, parts, | ||||||
18 | equipment, components, and furnishings incorporated into or | ||||||
19 | upon an aircraft as part of the modification, refurbishment, | ||||||
20 | completion, replacement, repair, or maintenance of the | ||||||
21 | aircraft. This exemption includes consumable supplies used in | ||||||
22 | the modification, refurbishment, completion, replacement, | ||||||
23 | repair, and maintenance of aircraft, but excludes any | ||||||
24 | materials, parts, equipment, components, and consumable | ||||||
25 | supplies used in the modification, replacement, repair, and | ||||||
26 | maintenance of aircraft engines or power plants, whether such |
| |||||||
| |||||||
1 | engines or power plants are installed or uninstalled upon any | ||||||
2 | such aircraft. "Consumable supplies" include, but are not | ||||||
3 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
4 | lubricants, cleaning solution, latex gloves, and protective | ||||||
5 | films. This exemption applies only to the use of qualifying | ||||||
6 | tangible personal property transferred incident to the | ||||||
7 | modification, refurbishment, completion, replacement, repair, | ||||||
8 | or maintenance of aircraft by persons who (i) hold an Air | ||||||
9 | Agency Certificate and are empowered to operate an approved | ||||||
10 | repair station by the Federal Aviation Administration, (ii) | ||||||
11 | have a Class IV Rating, and (iii) conduct operations in | ||||||
12 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
13 | The exemption does not include aircraft operated by a | ||||||
14 | commercial air carrier providing scheduled passenger air | ||||||
15 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
16 | of the Federal Aviation Regulations. The changes made to this | ||||||
17 | paragraph (27) by Public Act 98-534 are declarative of existing | ||||||
18 | law. | ||||||
19 | (28) Tangible personal property purchased by a | ||||||
20 | public-facilities corporation, as described in Section | ||||||
21 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
22 | constructing or furnishing a municipal convention hall, but | ||||||
23 | only if the legal title to the municipal convention hall is | ||||||
24 | transferred to the municipality without any further | ||||||
25 | consideration by or on behalf of the municipality at the time | ||||||
26 | of the completion of the municipal convention hall or upon the |
| |||||||
| |||||||
1 | retirement or redemption of any bonds or other debt instruments | ||||||
2 | issued by the public-facilities corporation in connection with | ||||||
3 | the development of the municipal convention hall. This | ||||||
4 | exemption includes existing public-facilities corporations as | ||||||
5 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
6 | This paragraph is exempt from the provisions of Section 3-75. | ||||||
7 | (29) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
8 | and menstrual cups. | ||||||
9 | (30) Tangible personal property transferred to a purchaser | ||||||
10 | who is exempt from the tax imposed by this Act by operation of | ||||||
11 | federal law. This paragraph is exempt from the provisions of | ||||||
12 | Section 3-75. | ||||||
13 | (31) Beginning on January 1, 2020, qualified tangible | ||||||
14 | personal property used in the construction or operation of a | ||||||
15 | data center that has been granted a certificate of exemption by | ||||||
16 | the Department of Commerce and Economic Opportunity, whether | ||||||
17 | that tangible personal property is purchased by the owner, | ||||||
18 | operator, or tenant of the data center or by a contractor or | ||||||
19 | subcontractor of the owner, operator, or tenant. Data centers | ||||||
20 | that would have qualified for a certificate of exemption prior | ||||||
21 | to January 1, 2020 had this amendatory Act of the 101st General | ||||||
22 | Assembly been in effect, may apply for and obtain an exemption | ||||||
23 | for subsequent purchases of computer equipment or enabling | ||||||
24 | software purchased or leased to upgrade, supplement, or replace | ||||||
25 | computer equipment or enabling software purchased or leased in | ||||||
26 | the original investment that would have qualified. |
| |||||||
| |||||||
1 | The Department of Commerce and Economic Opportunity shall | ||||||
2 | grant a certificate of exemption under this item (31) to | ||||||
3 | qualified data centers as defined by Section 605-1025 of the | ||||||
4 | Department of Commerce and Economic Opportunity Law of the
| ||||||
5 | Civil Administrative Code of Illinois. | ||||||
6 | For the purposes of this item (31): | ||||||
7 | "Data center" means a building or a series of buildings | ||||||
8 | rehabilitated or constructed to house working servers in | ||||||
9 | one physical location or multiple sites within the State of | ||||||
10 | Illinois. | ||||||
11 | "Qualified tangible personal property" means: | ||||||
12 | electrical systems and equipment; climate control and | ||||||
13 | chilling equipment and systems; mechanical systems and | ||||||
14 | equipment; monitoring and secure systems; emergency | ||||||
15 | generators; hardware; computers; servers; data storage | ||||||
16 | devices; network connectivity equipment; racks; cabinets; | ||||||
17 | telecommunications cabling infrastructure; raised floor | ||||||
18 | systems; peripheral components or systems; software; | ||||||
19 | mechanical, electrical, or plumbing systems; battery | ||||||
20 | systems; cooling systems and towers; temperature control | ||||||
21 | systems; other cabling; and other data center | ||||||
22 | infrastructure equipment and systems necessary to operate | ||||||
23 | qualified tangible personal property, including fixtures; | ||||||
24 | and component parts of any of the foregoing, including | ||||||
25 | installation, maintenance, repair, refurbishment, and | ||||||
26 | replacement of qualified tangible personal property to |
| |||||||
| |||||||
1 | generate, transform, transmit, distribute, or manage | ||||||
2 | electricity necessary to operate qualified tangible | ||||||
3 | personal property; and all other tangible personal | ||||||
4 | property that is essential to the operations of a computer | ||||||
5 | data center. The term "qualified tangible personal | ||||||
6 | property" also includes building materials physically | ||||||
7 | incorporated in to the qualifying data center. To document | ||||||
8 | the exemption allowed under this Section, the retailer must | ||||||
9 | obtain from the purchaser a copy of the certificate of | ||||||
10 | eligibility issued by the Department of Commerce and | ||||||
11 | Economic Opportunity. | ||||||
12 | This item (31) is exempt from the provisions of Section | ||||||
13 | 3-75. | ||||||
14 | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | ||||||
15 | 100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff. | ||||||
16 | 1-4-19; revised 1-8-19.)
| ||||||
17 | Section 15. The Service Occupation Tax Act is amended by | ||||||
18 | changing Section 3-5 as follows:
| ||||||
19 | (35 ILCS 115/3-5)
| ||||||
20 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
21 | property is
exempt from the tax imposed by this Act:
| ||||||
22 | (1) Personal property sold by a corporation, society, | ||||||
23 | association,
foundation, institution, or organization, other | ||||||
24 | than a limited liability
company, that is organized and |
| |||||||
| |||||||
1 | operated as a not-for-profit service enterprise
for the benefit | ||||||
2 | of persons 65 years of age or older if the personal property
| ||||||
3 | was not purchased by the enterprise for the purpose of resale | ||||||
4 | by the
enterprise.
| ||||||
5 | (2) Personal property purchased by a not-for-profit | ||||||
6 | Illinois county fair
association for use in conducting, | ||||||
7 | operating, or promoting the county fair.
| ||||||
8 | (3) Personal property purchased by any not-for-profit
arts | ||||||
9 | or cultural organization that establishes, by proof required by | ||||||
10 | the
Department by
rule, that it has received an exemption under | ||||||
11 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
12 | organized and operated primarily for the
presentation
or | ||||||
13 | support of arts or cultural programming, activities, or | ||||||
14 | services. These
organizations include, but are not limited to, | ||||||
15 | music and dramatic arts
organizations such as symphony | ||||||
16 | orchestras and theatrical groups, arts and
cultural service | ||||||
17 | organizations, local arts councils, visual arts organizations,
| ||||||
18 | and media arts organizations.
On and after July 1, 2001 ( the | ||||||
19 | effective date of Public Act 92-35) this amendatory Act of the | ||||||
20 | 92nd General
Assembly , however, an entity otherwise eligible | ||||||
21 | for this exemption shall not
make tax-free purchases unless it | ||||||
22 | has an active identification number issued by
the Department.
| ||||||
23 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
24 | coinage
issued by the State of Illinois, the government of the | ||||||
25 | United States of
America, or the government of any foreign | ||||||
26 | country, and bullion.
|
| |||||||
| |||||||
1 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
2 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
3 | equipment, including
repair and
replacement parts, both new and | ||||||
4 | used, and including that manufactured on
special order or | ||||||
5 | purchased for lease, certified by the purchaser to be used
| ||||||
6 | primarily for graphic arts production.
Equipment includes | ||||||
7 | chemicals or chemicals acting as catalysts but only if
the
| ||||||
8 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
9 | immediate change
upon a graphic arts product. Beginning on July | ||||||
10 | 1, 2017, graphic arts machinery and equipment is included in | ||||||
11 | the manufacturing and assembling machinery and equipment | ||||||
12 | exemption under Section 2 of this Act.
| ||||||
13 | (6) Personal property sold by a teacher-sponsored student | ||||||
14 | organization
affiliated with an elementary or secondary school | ||||||
15 | located in Illinois.
| ||||||
16 | (7) Farm machinery and equipment, both new and used, | ||||||
17 | including that
manufactured on special order, certified by the | ||||||
18 | purchaser to be used
primarily for production agriculture or | ||||||
19 | State or federal agricultural
programs, including individual | ||||||
20 | replacement parts for the machinery and
equipment, including | ||||||
21 | machinery and equipment purchased for lease,
and including | ||||||
22 | implements of husbandry defined in Section 1-130 of
the | ||||||
23 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
24 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
25 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
26 | but
excluding other motor vehicles required to be registered |
| |||||||
| |||||||
1 | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | ||||||
2 | hoop houses used for propagating, growing, or
overwintering | ||||||
3 | plants shall be considered farm machinery and equipment under
| ||||||
4 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
5 | shall include units sold
separately from a motor vehicle | ||||||
6 | required to be licensed and units sold mounted
on a motor | ||||||
7 | vehicle required to be licensed if the selling price of the | ||||||
8 | tender
is separately stated.
| ||||||
9 | Farm machinery and equipment shall include precision | ||||||
10 | farming equipment
that is
installed or purchased to be | ||||||
11 | installed on farm machinery and equipment
including, but not | ||||||
12 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
13 | or spreaders.
Precision farming equipment includes, but is not | ||||||
14 | limited to,
soil testing sensors, computers, monitors, | ||||||
15 | software, global positioning
and mapping systems, and other | ||||||
16 | such equipment.
| ||||||
17 | Farm machinery and equipment also includes computers, | ||||||
18 | sensors, software, and
related equipment used primarily in the
| ||||||
19 | computer-assisted operation of production agriculture | ||||||
20 | facilities, equipment,
and activities such as, but
not limited | ||||||
21 | to,
the collection, monitoring, and correlation of
animal and | ||||||
22 | crop data for the purpose of
formulating animal diets and | ||||||
23 | agricultural chemicals. This item (7) is exempt
from the | ||||||
24 | provisions of
Section 3-55.
| ||||||
25 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
26 | to or used by an air common
carrier, certified by the carrier |
| |||||||
| |||||||
1 | to be used for consumption, shipment,
or storage in the conduct | ||||||
2 | of its business as an air common carrier, for
a flight destined | ||||||
3 | for or returning from a location or locations
outside the | ||||||
4 | United States without regard to previous or subsequent domestic
| ||||||
5 | stopovers.
| ||||||
6 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
7 | or used by an air carrier, certified by the carrier to be used | ||||||
8 | for consumption, shipment, or storage in the conduct of its | ||||||
9 | business as an air common carrier, for a flight that (i) is | ||||||
10 | engaged in foreign trade or is engaged in trade between the | ||||||
11 | United States and any of its possessions and (ii) transports at | ||||||
12 | least one individual or package for hire from the city of | ||||||
13 | origination to the city of final destination on the same | ||||||
14 | aircraft, without regard to a change in the flight number of | ||||||
15 | that aircraft. | ||||||
16 | (9) Proceeds of mandatory service charges separately
| ||||||
17 | stated on customers' bills for the purchase and consumption of | ||||||
18 | food and
beverages, to the extent that the proceeds of the | ||||||
19 | service charge are in fact
turned over as tips or as a | ||||||
20 | substitute for tips to the employees who
participate directly | ||||||
21 | in preparing, serving, hosting or cleaning up the
food or | ||||||
22 | beverage function with respect to which the service charge is | ||||||
23 | imposed.
| ||||||
24 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
25 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
26 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and |
| |||||||
| |||||||
1 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
2 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
3 | individual replacement part for oil field exploration,
| ||||||
4 | drilling, and production equipment, and (vi) machinery and | ||||||
5 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
6 | required to be registered under the Illinois
Vehicle Code.
| ||||||
7 | (11) Photoprocessing machinery and equipment, including | ||||||
8 | repair and
replacement parts, both new and used, including that | ||||||
9 | manufactured on
special order, certified by the purchaser to be | ||||||
10 | used primarily for
photoprocessing, and including | ||||||
11 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
12 | (12) Until July 1, 2023, coal and aggregate exploration, | ||||||
13 | mining, off-highway hauling,
processing,
maintenance, and | ||||||
14 | reclamation equipment, including
replacement parts and | ||||||
15 | equipment, and including
equipment
purchased for lease, but | ||||||
16 | excluding motor vehicles required to be registered
under the | ||||||
17 | Illinois Vehicle Code. The changes made to this Section by | ||||||
18 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
19 | for credit or refund is allowed on or after August 16, 2013 | ||||||
20 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
21 | during the period beginning July 1, 2003 and ending on August | ||||||
22 | 16, 2013 (the effective date of Public Act 98-456).
| ||||||
23 | (13) Beginning January 1, 1992 and through June 30, 2016, | ||||||
24 | food for human consumption that is to be consumed off the | ||||||
25 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
26 | drinks and food that
has been prepared for immediate |
| |||||||
| |||||||
1 | consumption) and prescription and
non-prescription medicines, | ||||||
2 | drugs, medical appliances, and insulin, urine
testing | ||||||
3 | materials, syringes, and needles used by diabetics, for human | ||||||
4 | use,
when purchased for use by a person receiving medical | ||||||
5 | assistance under
Article V of the Illinois Public Aid Code who | ||||||
6 | resides in a licensed
long-term care facility, as defined in | ||||||
7 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
8 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
9 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
10 | (14) Semen used for artificial insemination of livestock | ||||||
11 | for direct
agricultural production.
| ||||||
12 | (15) Horses, or interests in horses, registered with and | ||||||
13 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
14 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
15 | Horse Association, United States
Trotting Association, or | ||||||
16 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
17 | racing for prizes. This item (15) is exempt from the provisions | ||||||
18 | of Section 3-55, and the exemption provided for under this item | ||||||
19 | (15) applies for all periods beginning May 30, 1995, but no | ||||||
20 | claim for credit or refund is allowed on or after January 1, | ||||||
21 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
22 | paid during the period beginning May 30, 2000 and ending on | ||||||
23 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
24 | (16) Computers and communications equipment utilized for | ||||||
25 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
26 | analysis, or treatment of hospital patients sold to a lessor |
| |||||||
| |||||||
1 | who leases the
equipment, under a lease of one year or longer | ||||||
2 | executed or in effect at the
time of the purchase, to a
| ||||||
3 | hospital
that has been issued an active tax exemption | ||||||
4 | identification number by the
Department under Section 1g of the | ||||||
5 | Retailers' Occupation Tax Act.
| ||||||
6 | (17) Personal property sold to a lessor who leases the
| ||||||
7 | property, under a
lease of one year or longer executed or in | ||||||
8 | effect at the time of the purchase,
to a governmental body
that | ||||||
9 | has been issued an active tax exemption identification number | ||||||
10 | by the
Department under Section 1g of the Retailers' Occupation | ||||||
11 | Tax Act.
| ||||||
12 | (18) Beginning with taxable years ending on or after | ||||||
13 | December
31, 1995
and
ending with taxable years ending on or | ||||||
14 | before December 31, 2004,
personal property that is
donated for | ||||||
15 | disaster relief to be used in a State or federally declared
| ||||||
16 | disaster area in Illinois or bordering Illinois by a | ||||||
17 | manufacturer or retailer
that is registered in this State to a | ||||||
18 | corporation, society, association,
foundation, or institution | ||||||
19 | that has been issued a sales tax exemption
identification | ||||||
20 | number by the Department that assists victims of the disaster
| ||||||
21 | who reside within the declared disaster area.
| ||||||
22 | (19) Beginning with taxable years ending on or after | ||||||
23 | December
31, 1995 and
ending with taxable years ending on or | ||||||
24 | before December 31, 2004, personal
property that is used in the | ||||||
25 | performance of infrastructure repairs in this
State, including | ||||||
26 | but not limited to municipal roads and streets, access roads,
|
| |||||||
| |||||||
1 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
2 | line extensions,
water distribution and purification | ||||||
3 | facilities, storm water drainage and
retention facilities, and | ||||||
4 | sewage treatment facilities, resulting from a State
or | ||||||
5 | federally declared disaster in Illinois or bordering Illinois | ||||||
6 | when such
repairs are initiated on facilities located in the | ||||||
7 | declared disaster area
within 6 months after the disaster.
| ||||||
8 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
9 | "game breeding
and
hunting preserve area" as that term is used
| ||||||
10 | in the
Wildlife Code. This paragraph is exempt from the | ||||||
11 | provisions
of
Section 3-55.
| ||||||
12 | (21) A motor vehicle, as that term is defined in Section | ||||||
13 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
14 | corporation, limited liability
company, society, association, | ||||||
15 | foundation, or institution that is determined by
the Department | ||||||
16 | to be organized and operated exclusively for educational
| ||||||
17 | purposes. For purposes of this exemption, "a corporation, | ||||||
18 | limited liability
company, society, association, foundation, | ||||||
19 | or institution organized and
operated
exclusively for | ||||||
20 | educational purposes" means all tax-supported public schools,
| ||||||
21 | private schools that offer systematic instruction in useful | ||||||
22 | branches of
learning by methods common to public schools and | ||||||
23 | that compare favorably in
their scope and intensity with the | ||||||
24 | course of study presented in tax-supported
schools, and | ||||||
25 | vocational or technical schools or institutes organized and
| ||||||
26 | operated exclusively to provide a course of study of not less |
| |||||||
| |||||||
1 | than 6 weeks
duration and designed to prepare individuals to | ||||||
2 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
3 | industrial, business, or commercial
occupation.
| ||||||
4 | (22) Beginning January 1, 2000, personal property, | ||||||
5 | including
food,
purchased through fundraising
events for the | ||||||
6 | benefit of
a public or private elementary or
secondary school, | ||||||
7 | a group of those schools, or one or more school
districts if | ||||||
8 | the events are
sponsored by an entity recognized by the school | ||||||
9 | district that consists
primarily of volunteers and includes
| ||||||
10 | parents and teachers of the school children. This paragraph | ||||||
11 | does not apply
to fundraising
events (i) for the benefit of | ||||||
12 | private home instruction or (ii)
for which the fundraising | ||||||
13 | entity purchases the personal property sold at
the events from | ||||||
14 | another individual or entity that sold the property for the
| ||||||
15 | purpose of resale by the fundraising entity and that
profits | ||||||
16 | from the sale to the
fundraising entity. This paragraph is | ||||||
17 | exempt
from the provisions
of Section 3-55.
| ||||||
18 | (23) Beginning January 1, 2000
and through December 31, | ||||||
19 | 2001, new or used automatic vending
machines that prepare and | ||||||
20 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
21 | items, and replacement parts for these machines.
Beginning | ||||||
22 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
23 | for
machines used in commercial, coin-operated amusement
and | ||||||
24 | vending business if a use or occupation tax is paid on the | ||||||
25 | gross receipts
derived from
the use of the commercial, | ||||||
26 | coin-operated amusement and vending machines.
This paragraph |
| |||||||
| |||||||
1 | is exempt from the provisions of Section 3-55.
| ||||||
2 | (24) Beginning
on August 2, 2001 ( the effective date of | ||||||
3 | Public Act 92-227) this amendatory Act of the 92nd General | ||||||
4 | Assembly ,
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 the
| ||||||
11 | Retailers' Occupation Tax Act. This paragraph is exempt from | ||||||
12 | the provisions of
Section 3-55.
| ||||||
13 | (25) Beginning
on August 2, 2001 ( the effective date of | ||||||
14 | Public Act 92-227) this amendatory Act of the 92nd General | ||||||
15 | Assembly ,
personal property sold to a lessor who
leases the | ||||||
16 | property, under a lease of one year or longer executed or in | ||||||
17 | effect
at the time of the purchase, to a governmental body that | ||||||
18 | has been issued an
active tax exemption identification number | ||||||
19 | by the Department under Section 1g
of the Retailers' Occupation | ||||||
20 | Tax Act. This paragraph is exempt from the
provisions of | ||||||
21 | Section 3-55.
| ||||||
22 | (26) Beginning on January 1, 2002 and through June 30, | ||||||
23 | 2016, tangible personal property
purchased
from an Illinois | ||||||
24 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
25 | activities in Illinois who will, upon receipt of the property | ||||||
26 | in Illinois,
temporarily store the property in Illinois (i) for |
| |||||||
| |||||||
1 | the purpose of subsequently
transporting it outside this State | ||||||
2 | for use or consumption thereafter solely
outside this State or | ||||||
3 | (ii) for the purpose of being processed, fabricated, or
| ||||||
4 | manufactured into, attached to, or incorporated into other | ||||||
5 | tangible personal
property to be transported outside this State | ||||||
6 | and thereafter used or consumed
solely outside this State. The | ||||||
7 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
8 | accordance with the Illinois Administrative Procedure Act, | ||||||
9 | issue a
permit to any taxpayer in good standing with the | ||||||
10 | Department who is eligible for
the exemption under this | ||||||
11 | paragraph (26). The permit issued under
this paragraph (26) | ||||||
12 | shall authorize the holder, to the extent and
in the manner | ||||||
13 | specified in the rules adopted under this Act, to purchase
| ||||||
14 | tangible personal property from a retailer exempt from the | ||||||
15 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
16 | necessary books and records to
substantiate the use and | ||||||
17 | consumption of all such tangible personal property
outside of | ||||||
18 | the State of Illinois.
| ||||||
19 | (27) Beginning January 1, 2008, tangible personal property | ||||||
20 | used in the construction or maintenance of a community water | ||||||
21 | supply, as defined under Section 3.145 of the Environmental | ||||||
22 | Protection Act, that is operated by a not-for-profit | ||||||
23 | corporation that holds a valid water supply permit issued under | ||||||
24 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
25 | exempt from the provisions of Section 3-55.
| ||||||
26 | (28) Tangible personal property sold to a |
| |||||||
| |||||||
1 | public-facilities corporation, as described in Section | ||||||
2 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
3 | constructing or furnishing a municipal convention hall, but | ||||||
4 | only if the legal title to the municipal convention hall is | ||||||
5 | transferred to the municipality without any further | ||||||
6 | consideration by or on behalf of the municipality at the time | ||||||
7 | of the completion of the municipal convention hall or upon the | ||||||
8 | retirement or redemption of any bonds or other debt instruments | ||||||
9 | issued by the public-facilities corporation in connection with | ||||||
10 | the development of the municipal convention hall. This | ||||||
11 | exemption includes existing public-facilities corporations as | ||||||
12 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
13 | This paragraph is exempt from the provisions of Section 3-55. | ||||||
14 | (29) Beginning January 1, 2010, materials, parts, | ||||||
15 | equipment, components, and furnishings incorporated into or | ||||||
16 | upon an aircraft as part of the modification, refurbishment, | ||||||
17 | completion, replacement, repair, or maintenance of the | ||||||
18 | aircraft. This exemption includes consumable supplies used in | ||||||
19 | the modification, refurbishment, completion, replacement, | ||||||
20 | repair, and maintenance of aircraft, but excludes any | ||||||
21 | materials, parts, equipment, components, and consumable | ||||||
22 | supplies used in the modification, replacement, repair, and | ||||||
23 | maintenance of aircraft engines or power plants, whether such | ||||||
24 | engines or power plants are installed or uninstalled upon any | ||||||
25 | such aircraft. "Consumable supplies" include, but are not | ||||||
26 | limited to, adhesive, tape, sandpaper, general purpose |
| |||||||
| |||||||
1 | lubricants, cleaning solution, latex gloves, and protective | ||||||
2 | films. This exemption applies only to the transfer of | ||||||
3 | qualifying tangible personal property incident to the | ||||||
4 | modification, refurbishment, completion, replacement, repair, | ||||||
5 | or maintenance of an aircraft by persons who (i) hold an Air | ||||||
6 | Agency Certificate and are empowered to operate an approved | ||||||
7 | repair station by the Federal Aviation Administration, (ii) | ||||||
8 | have a Class IV Rating, and (iii) conduct operations in | ||||||
9 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
10 | The exemption does not include aircraft operated by a | ||||||
11 | commercial air carrier providing scheduled passenger air | ||||||
12 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
13 | of the Federal Aviation Regulations. The changes made to this | ||||||
14 | paragraph (29) by Public Act 98-534 are declarative of existing | ||||||
15 | law. | ||||||
16 | (30) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
17 | and menstrual cups. | ||||||
18 | (31) Tangible personal property transferred to a purchaser | ||||||
19 | who is exempt from tax by operation of federal law. This | ||||||
20 | paragraph is exempt from the provisions of Section 3-55. | ||||||
21 | (32) Beginning on January 1, 2020, qualified tangible | ||||||
22 | personal property used in the construction or operation of a | ||||||
23 | data center that has been granted a certificate of exemption by | ||||||
24 | the Department of Commerce and Economic Opportunity, whether | ||||||
25 | that tangible personal property is purchased by the owner, | ||||||
26 | operator, or tenant of the data center or by a contractor or |
| |||||||
| |||||||
1 | subcontractor of the owner, operator, or tenant. Data centers | ||||||
2 | that would have qualified for a certificate of exemption prior | ||||||
3 | to January 1, 2020 had this amendatory Act of the 101st General | ||||||
4 | Assembly been in effect, may apply for and obtain an exemption | ||||||
5 | for subsequent purchases of computer equipment or enabling | ||||||
6 | software purchased or leased to upgrade, supplement, or replace | ||||||
7 | computer equipment or enabling software purchased or leased in | ||||||
8 | the original investment that would have qualified. | ||||||
9 | The Department of Commerce and Economic Opportunity shall | ||||||
10 | grant a certificate of exemption under this item (32) to | ||||||
11 | qualified data centers as defined by Section 605-1025 of the | ||||||
12 | Department of Commerce and Economic Opportunity Law of the
| ||||||
13 | Civil Administrative Code of Illinois. | ||||||
14 | For the purposes of this item (32): | ||||||
15 | "Data center" means a building or a series of buildings | ||||||
16 | rehabilitated or constructed to house working servers in | ||||||
17 | one physical location or multiple sites within the State of | ||||||
18 | Illinois. | ||||||
19 | "Qualified tangible personal property" means: | ||||||
20 | electrical systems and equipment; climate control and | ||||||
21 | chilling equipment and systems; mechanical systems and | ||||||
22 | equipment; monitoring and secure systems; emergency | ||||||
23 | generators; hardware; computers; servers; data storage | ||||||
24 | devices; network connectivity equipment; racks; cabinets; | ||||||
25 | telecommunications cabling infrastructure; raised floor | ||||||
26 | systems; peripheral components or systems; software; |
| |||||||
| |||||||
1 | mechanical, electrical, or plumbing systems; battery | ||||||
2 | systems; cooling systems and towers; temperature control | ||||||
3 | systems; other cabling; and other data center | ||||||
4 | infrastructure equipment and systems necessary to operate | ||||||
5 | qualified tangible personal property, including fixtures; | ||||||
6 | and component parts of any of the foregoing, including | ||||||
7 | installation, maintenance, repair, refurbishment, and | ||||||
8 | replacement of qualified tangible personal property to | ||||||
9 | generate, transform, transmit, distribute, or manage | ||||||
10 | electricity necessary to operate qualified tangible | ||||||
11 | personal property; and all other tangible personal | ||||||
12 | property that is essential to the operations of a computer | ||||||
13 | data center. The term "qualified tangible personal | ||||||
14 | property" also includes building materials physically | ||||||
15 | incorporated in to the qualifying data center. To document | ||||||
16 | the exemption allowed under this Section, the retailer must | ||||||
17 | obtain from the purchaser a copy of the certificate of | ||||||
18 | eligibility issued by the Department of Commerce and | ||||||
19 | Economic Opportunity. | ||||||
20 | This item (32) is exempt from the provisions of Section | ||||||
21 | 3-55. | ||||||
22 | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | ||||||
23 | 100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff. | ||||||
24 | 1-4-19; revised 1-8-19.)
| ||||||
25 | Section 20. The Retailers' Occupation Tax Act is amended by |
| |||||||
| |||||||
1 | changing Section 2-5 as follows:
| ||||||
2 | (35 ILCS 120/2-5)
| ||||||
3 | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||||||
4 | sale of
the following tangible personal property are exempt | ||||||
5 | from the tax imposed
by this Act:
| ||||||
6 | (1) Farm chemicals.
| ||||||
7 | (2) Farm machinery and equipment, both new and used, | ||||||
8 | including that
manufactured on special order, certified by | ||||||
9 | the purchaser to be used
primarily for production | ||||||
10 | agriculture or State or federal agricultural
programs, | ||||||
11 | including individual replacement parts for the machinery | ||||||
12 | and
equipment, including machinery and equipment purchased | ||||||
13 | for lease,
and including implements of husbandry defined in | ||||||
14 | Section 1-130 of
the Illinois Vehicle Code, farm machinery | ||||||
15 | and agricultural chemical and
fertilizer spreaders, and | ||||||
16 | nurse wagons required to be registered
under Section 3-809 | ||||||
17 | of the Illinois Vehicle Code,
but
excluding other motor | ||||||
18 | vehicles required to be registered under the Illinois
| ||||||
19 | Vehicle Code.
Horticultural polyhouses or hoop houses used | ||||||
20 | for propagating, growing, or
overwintering plants shall be | ||||||
21 | considered farm machinery and equipment under
this item | ||||||
22 | (2).
Agricultural chemical tender tanks and dry boxes shall | ||||||
23 | include units sold
separately from a motor vehicle required | ||||||
24 | to be licensed and units sold mounted
on a motor vehicle | ||||||
25 | required to be licensed, if the selling price of the tender
|
| |||||||
| |||||||
1 | is separately stated.
| ||||||
2 | Farm machinery and equipment shall include precision | ||||||
3 | farming equipment
that is
installed or purchased to be | ||||||
4 | installed on farm machinery and equipment
including, but | ||||||
5 | not limited to, tractors, harvesters, sprayers, planters,
| ||||||
6 | seeders, or spreaders.
Precision farming equipment | ||||||
7 | includes, but is not limited to,
soil testing sensors, | ||||||
8 | computers, monitors, software, global positioning
and | ||||||
9 | mapping systems, and other such equipment.
| ||||||
10 | Farm machinery and equipment also includes computers, | ||||||
11 | sensors, software, and
related equipment used primarily in | ||||||
12 | the
computer-assisted operation of production agriculture | ||||||
13 | facilities, equipment,
and activities such as, but
not | ||||||
14 | limited to,
the collection, monitoring, and correlation of
| ||||||
15 | animal and crop data for the purpose of
formulating animal | ||||||
16 | diets and agricultural chemicals. This item (2) is exempt
| ||||||
17 | from the provisions of
Section 2-70.
| ||||||
18 | (3) Until July 1, 2003, distillation machinery and | ||||||
19 | equipment, sold as a
unit or kit,
assembled or installed by | ||||||
20 | the retailer, certified by the user to be used
only for the | ||||||
21 | production of ethyl alcohol that will be used for | ||||||
22 | consumption
as motor fuel or as a component of motor fuel | ||||||
23 | for the personal use of the
user, and not subject to sale | ||||||
24 | or resale.
| ||||||
25 | (4) Until July 1, 2003 and beginning again September 1, | ||||||
26 | 2004 through August 30, 2014, graphic arts machinery and |
| |||||||
| |||||||
1 | equipment, including
repair and
replacement parts, both | ||||||
2 | new and used, and including that manufactured on
special | ||||||
3 | order or purchased for lease, certified by the purchaser to | ||||||
4 | be used
primarily for graphic arts production.
Equipment | ||||||
5 | includes chemicals or
chemicals acting as catalysts but | ||||||
6 | only if
the chemicals or chemicals acting as catalysts | ||||||
7 | effect a direct and immediate
change upon a
graphic arts | ||||||
8 | product. Beginning on July 1, 2017, graphic arts machinery | ||||||
9 | and equipment is included in the manufacturing and | ||||||
10 | assembling machinery and equipment exemption under | ||||||
11 | paragraph (14).
| ||||||
12 | (5) A motor vehicle that is used for automobile | ||||||
13 | renting, as defined in the Automobile Renting Occupation | ||||||
14 | and Use Tax Act. This paragraph is exempt from
the | ||||||
15 | provisions of Section 2-70.
| ||||||
16 | (6) Personal property sold by a teacher-sponsored | ||||||
17 | student organization
affiliated with an elementary or | ||||||
18 | secondary school located in Illinois.
| ||||||
19 | (7) Until July 1, 2003, proceeds of that portion of the | ||||||
20 | selling price of
a passenger car the
sale of which is | ||||||
21 | subject to the Replacement Vehicle Tax.
| ||||||
22 | (8) Personal property sold to an Illinois county fair | ||||||
23 | association for
use in conducting, operating, or promoting | ||||||
24 | the county fair.
| ||||||
25 | (9) Personal property sold to a not-for-profit arts
or | ||||||
26 | cultural organization that establishes, by proof required |
| |||||||
| |||||||
1 | by the Department
by
rule, that it has received an | ||||||
2 | exemption under Section 501(c)(3) of the
Internal Revenue | ||||||
3 | Code and that is organized and operated primarily for the
| ||||||
4 | presentation
or support of arts or cultural programming, | ||||||
5 | activities, or services. These
organizations include, but | ||||||
6 | are not limited to, music and dramatic arts
organizations | ||||||
7 | such as symphony orchestras and theatrical groups, arts and
| ||||||
8 | cultural service organizations, local arts councils, | ||||||
9 | visual arts organizations,
and media arts organizations.
| ||||||
10 | On and after July 1, 2001 (the effective date of Public Act | ||||||
11 | 92-35), however, an entity otherwise eligible for this | ||||||
12 | exemption shall not
make tax-free purchases unless it has | ||||||
13 | an active identification number issued by
the Department.
| ||||||
14 | (10) Personal property sold by a corporation, society, | ||||||
15 | association,
foundation, institution, or organization, | ||||||
16 | other than a limited liability
company, that is organized | ||||||
17 | and operated as a not-for-profit service enterprise
for the | ||||||
18 | benefit of persons 65 years of age or older if the personal | ||||||
19 | property
was not purchased by the enterprise for the | ||||||
20 | purpose of resale by the
enterprise.
| ||||||
21 | (11) Personal property sold to a governmental body, to | ||||||
22 | a corporation,
society, association, foundation, or | ||||||
23 | institution organized and operated
exclusively for | ||||||
24 | charitable, religious, or educational purposes, or to a
| ||||||
25 | not-for-profit corporation, society, association, | ||||||
26 | foundation, institution,
or organization that has no |
| |||||||
| |||||||
1 | compensated officers or employees and that is
organized and | ||||||
2 | operated primarily for the recreation of persons 55 years | ||||||
3 | of
age or older. A limited liability company may qualify | ||||||
4 | for the exemption under
this paragraph only if the limited | ||||||
5 | liability company is organized and operated
exclusively | ||||||
6 | for educational purposes. On and after July 1, 1987, | ||||||
7 | however, no
entity otherwise eligible for this exemption | ||||||
8 | shall make tax-free purchases
unless it has an active | ||||||
9 | identification number issued by the Department.
| ||||||
10 | (12) (Blank).
| ||||||
11 | (12-5) On and after July 1, 2003 and through June 30, | ||||||
12 | 2004, motor vehicles of the second division
with a gross | ||||||
13 | vehicle weight in excess of 8,000 pounds
that
are
subject | ||||||
14 | to the commercial distribution fee imposed under Section | ||||||
15 | 3-815.1 of
the Illinois
Vehicle Code. Beginning on July 1, | ||||||
16 | 2004 and through June 30, 2005, the use in this State of | ||||||
17 | motor vehicles of the second division: (i) with a gross | ||||||
18 | vehicle weight rating in excess of 8,000 pounds; (ii) that | ||||||
19 | are subject to the commercial distribution fee imposed | ||||||
20 | under Section 3-815.1 of the Illinois Vehicle Code; and | ||||||
21 | (iii) that are primarily used for commercial purposes. | ||||||
22 | Through June 30, 2005, this
exemption applies to repair and | ||||||
23 | replacement parts added
after the
initial purchase of such | ||||||
24 | a motor vehicle if that motor vehicle is used in a
manner | ||||||
25 | that
would qualify for the rolling stock exemption | ||||||
26 | otherwise provided for in this
Act. For purposes of this |
| |||||||
| |||||||
1 | paragraph, "used for commercial purposes" means the | ||||||
2 | transportation of persons or property in furtherance of any | ||||||
3 | commercial or industrial enterprise whether for-hire or | ||||||
4 | not.
| ||||||
5 | (13) Proceeds from sales to owners, lessors, or
| ||||||
6 | shippers of
tangible personal property that is utilized by | ||||||
7 | interstate carriers for
hire for use as rolling stock | ||||||
8 | moving in interstate commerce
and equipment operated by a | ||||||
9 | telecommunications provider, licensed as a
common carrier | ||||||
10 | by the Federal Communications Commission, which is
| ||||||
11 | permanently installed in or affixed to aircraft moving in | ||||||
12 | interstate commerce.
| ||||||
13 | (14) Machinery and equipment that will be used by the | ||||||
14 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
15 | process of manufacturing or
assembling tangible personal | ||||||
16 | property for wholesale or retail sale or
lease, whether the | ||||||
17 | sale or lease is made directly by the manufacturer or by
| ||||||
18 | some other person, whether the materials used in the | ||||||
19 | process are owned by
the manufacturer or some other person, | ||||||
20 | or whether the sale or lease is made
apart from or as an | ||||||
21 | incident to the seller's engaging in the service
occupation | ||||||
22 | of producing machines, tools, dies, jigs, patterns, | ||||||
23 | gauges, or
other similar items of no commercial value on | ||||||
24 | special order for a particular
purchaser. The exemption | ||||||
25 | provided by this paragraph (14) does not include machinery | ||||||
26 | and equipment used in (i) the generation of electricity for |
| |||||||
| |||||||
1 | wholesale or retail sale; (ii) the generation or treatment | ||||||
2 | of natural or artificial gas for wholesale or retail sale | ||||||
3 | that is delivered to customers through pipes, pipelines, or | ||||||
4 | mains; or (iii) the treatment of water for wholesale or | ||||||
5 | retail sale that is delivered to customers through pipes, | ||||||
6 | pipelines, or mains. The provisions of Public Act 98-583 | ||||||
7 | are declaratory of existing law as to the meaning and scope | ||||||
8 | of this exemption. Beginning on July 1, 2017, the exemption | ||||||
9 | provided by this paragraph (14) includes, but is not | ||||||
10 | limited to, graphic arts machinery and equipment, as | ||||||
11 | defined in paragraph (4) of this Section.
| ||||||
12 | (15) Proceeds of mandatory service charges separately | ||||||
13 | stated on
customers' bills for purchase and consumption of | ||||||
14 | food and beverages, to the
extent that the proceeds of the | ||||||
15 | service charge are in fact turned over as
tips or as a | ||||||
16 | substitute for tips to the employees who participate | ||||||
17 | directly
in preparing, serving, hosting or cleaning up the | ||||||
18 | food or beverage function
with respect to which the service | ||||||
19 | charge is imposed.
| ||||||
20 | (16) Tangible personal property sold to a purchaser if | ||||||
21 | the purchaser is exempt from use tax by operation of | ||||||
22 | federal law. This paragraph is exempt from the provisions | ||||||
23 | of Section 2-70.
| ||||||
24 | (17) Tangible personal property sold to a common | ||||||
25 | carrier by rail or
motor that
receives the physical | ||||||
26 | possession of the property in Illinois and that
transports |
| |||||||
| |||||||
1 | the property, or shares with another common carrier in the
| ||||||
2 | transportation of the property, out of Illinois on a | ||||||
3 | standard uniform bill
of lading showing the seller of the | ||||||
4 | property as the shipper or consignor of
the property to a | ||||||
5 | destination outside Illinois, for use outside Illinois.
| ||||||
6 | (18) Legal tender, currency, medallions, or gold or | ||||||
7 | silver coinage
issued by the State of Illinois, the | ||||||
8 | government of the United States of
America, or the | ||||||
9 | government of any foreign country, and bullion.
| ||||||
10 | (19) Until July 1, 2003, oil field exploration, | ||||||
11 | drilling, and production
equipment, including
(i) rigs and | ||||||
12 | parts of rigs, rotary rigs, cable tool
rigs, and workover | ||||||
13 | rigs, (ii) pipe and tubular goods, including casing and
| ||||||
14 | drill strings, (iii) pumps and pump-jack units, (iv) | ||||||
15 | storage tanks and flow
lines, (v) any individual | ||||||
16 | replacement part for oil field exploration,
drilling, and | ||||||
17 | production equipment, and (vi) machinery and equipment | ||||||
18 | purchased
for lease; but
excluding motor vehicles required | ||||||
19 | to be registered under the Illinois
Vehicle Code.
| ||||||
20 | (20) Photoprocessing machinery and equipment, | ||||||
21 | including repair and
replacement parts, both new and used, | ||||||
22 | including that manufactured on
special order, certified by | ||||||
23 | the purchaser to be used primarily for
photoprocessing, and | ||||||
24 | including photoprocessing machinery and equipment
| ||||||
25 | purchased for lease.
| ||||||
26 | (21) Until July 1, 2023, coal and aggregate |
| |||||||
| |||||||
1 | exploration, mining, off-highway hauling,
processing,
| ||||||
2 | maintenance, and reclamation equipment, including
| ||||||
3 | replacement parts and equipment, and including
equipment | ||||||
4 | purchased for lease, but excluding motor vehicles required | ||||||
5 | to be
registered under the Illinois Vehicle Code. The | ||||||
6 | changes made to this Section by Public Act 97-767 apply on | ||||||
7 | and after July 1, 2003, but no claim for credit or refund | ||||||
8 | is allowed on or after August 16, 2013 (the effective date | ||||||
9 | of Public Act 98-456)
for such taxes paid during the period | ||||||
10 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
11 | effective date of Public Act 98-456).
| ||||||
12 | (22) Until June 30, 2013, fuel and petroleum products | ||||||
13 | sold to or used by an air carrier,
certified by the carrier | ||||||
14 | to be used for consumption, shipment, or storage
in the | ||||||
15 | conduct of its business as an air common carrier, for a | ||||||
16 | flight
destined for or returning from a location or | ||||||
17 | locations
outside the United States without regard to | ||||||
18 | previous or subsequent domestic
stopovers.
| ||||||
19 | Beginning July 1, 2013, fuel and petroleum products | ||||||
20 | sold to or used by an air carrier, certified by the carrier | ||||||
21 | to be used for consumption, shipment, or storage in the | ||||||
22 | conduct of its business as an air common carrier, for a | ||||||
23 | flight that (i) is engaged in foreign trade or is engaged | ||||||
24 | in trade between the United States and any of its | ||||||
25 | possessions and (ii) transports at least one individual or | ||||||
26 | package for hire from the city of origination to the city |
| |||||||
| |||||||
1 | of final destination on the same aircraft, without regard | ||||||
2 | to a change in the flight number of that aircraft. | ||||||
3 | (23) A transaction in which the purchase order is | ||||||
4 | received by a florist
who is located outside Illinois, but | ||||||
5 | who has a florist located in Illinois
deliver the property | ||||||
6 | to the purchaser or the purchaser's donee in Illinois.
| ||||||
7 | (24) Fuel consumed or used in the operation of ships, | ||||||
8 | barges, or vessels
that are used primarily in or for the | ||||||
9 | transportation of property or the
conveyance of persons for | ||||||
10 | hire on rivers bordering on this State if the
fuel is | ||||||
11 | delivered by the seller to the purchaser's barge, ship, or | ||||||
12 | vessel
while it is afloat upon that bordering river.
| ||||||
13 | (25) Except as provided in item (25-5) of this Section, | ||||||
14 | a
motor vehicle sold in this State to a nonresident even | ||||||
15 | though the
motor vehicle is delivered to the nonresident in | ||||||
16 | this State, if the motor
vehicle is not to be titled in | ||||||
17 | this State, and if a drive-away permit
is issued to the | ||||||
18 | motor vehicle as provided in Section 3-603 of the Illinois
| ||||||
19 | Vehicle Code or if the nonresident purchaser has vehicle | ||||||
20 | registration
plates to transfer to the motor vehicle upon | ||||||
21 | returning to his or her home
state. The issuance of the | ||||||
22 | drive-away permit or having
the
out-of-state registration | ||||||
23 | plates to be transferred is prima facie evidence
that the | ||||||
24 | motor vehicle will not be titled in this State.
| ||||||
25 | (25-5) The exemption under item (25) does not apply if | ||||||
26 | the state in which the motor vehicle will be titled does |
| |||||||
| |||||||
1 | not allow a reciprocal exemption for a motor vehicle sold | ||||||
2 | and delivered in that state to an Illinois resident but | ||||||
3 | titled in Illinois. The tax collected under this Act on the | ||||||
4 | sale of a motor vehicle in this State to a resident of | ||||||
5 | another state that does not allow a reciprocal exemption | ||||||
6 | shall be imposed at a rate equal to the state's rate of tax | ||||||
7 | on taxable property in the state in which the purchaser is | ||||||
8 | a resident, except that the tax shall not exceed the tax | ||||||
9 | that would otherwise be imposed under this Act. At the time | ||||||
10 | of the sale, the purchaser shall execute a statement, | ||||||
11 | signed under penalty of perjury, of his or her intent to | ||||||
12 | title the vehicle in the state in which the purchaser is a | ||||||
13 | resident within 30 days after the sale and of the fact of | ||||||
14 | the payment to the State of Illinois of tax in an amount | ||||||
15 | equivalent to the state's rate of tax on taxable property | ||||||
16 | in his or her state of residence and shall submit the | ||||||
17 | statement to the appropriate tax collection agency in his | ||||||
18 | or her state of residence. In addition, the retailer must | ||||||
19 | retain a signed copy of the statement in his or her | ||||||
20 | records. Nothing in this item shall be construed to require | ||||||
21 | the removal of the vehicle from this state following the | ||||||
22 | filing of an intent to title the vehicle in the purchaser's | ||||||
23 | state of residence if the purchaser titles the vehicle in | ||||||
24 | his or her state of residence within 30 days after the date | ||||||
25 | of sale. The tax collected under this Act in accordance | ||||||
26 | with this item (25-5) shall be proportionately distributed |
| |||||||
| |||||||
1 | as if the tax were collected at the 6.25% general rate | ||||||
2 | imposed under this Act.
| ||||||
3 | (25-7) Beginning on July 1, 2007, no tax is imposed | ||||||
4 | under this Act on the sale of an aircraft, as defined in | ||||||
5 | Section 3 of the Illinois Aeronautics Act, if all of the | ||||||
6 | following conditions are met: | ||||||
7 | (1) the aircraft leaves this State within 15 days | ||||||
8 | after the later of either the issuance of the final | ||||||
9 | billing for the sale of the aircraft, or the authorized | ||||||
10 | approval for return to service, completion of the | ||||||
11 | maintenance record entry, and completion of the test | ||||||
12 | flight and ground test for inspection, as required by | ||||||
13 | 14 C.F.R. 91.407; | ||||||
14 | (2) the aircraft is not based or registered in this | ||||||
15 | State after the sale of the aircraft; and | ||||||
16 | (3) the seller retains in his or her books and | ||||||
17 | records and provides to the Department a signed and | ||||||
18 | dated certification from the purchaser, on a form | ||||||
19 | prescribed by the Department, certifying that the | ||||||
20 | requirements of this item (25-7) are met. The | ||||||
21 | certificate must also include the name and address of | ||||||
22 | the purchaser, the address of the location where the | ||||||
23 | aircraft is to be titled or registered, the address of | ||||||
24 | the primary physical location of the aircraft, and | ||||||
25 | other information that the Department may reasonably | ||||||
26 | require. |
| |||||||
| |||||||
1 | For purposes of this item (25-7): | ||||||
2 | "Based in this State" means hangared, stored, or | ||||||
3 | otherwise used, excluding post-sale customizations as | ||||||
4 | defined in this Section, for 10 or more days in each | ||||||
5 | 12-month period immediately following the date of the sale | ||||||
6 | of the aircraft. | ||||||
7 | "Registered in this State" means an aircraft | ||||||
8 | registered with the Department of Transportation, | ||||||
9 | Aeronautics Division, or titled or registered with the | ||||||
10 | Federal Aviation Administration to an address located in | ||||||
11 | this State. | ||||||
12 | This paragraph (25-7) is exempt from the provisions
of
| ||||||
13 | Section 2-70.
| ||||||
14 | (26) Semen used for artificial insemination of | ||||||
15 | livestock for direct
agricultural production.
| ||||||
16 | (27) Horses, or interests in horses, registered with | ||||||
17 | and meeting the
requirements of any of the
Arabian Horse | ||||||
18 | Club Registry of America, Appaloosa Horse Club, American | ||||||
19 | Quarter
Horse Association, United States
Trotting | ||||||
20 | Association, or Jockey Club, as appropriate, used for
| ||||||
21 | purposes of breeding or racing for prizes. This item (27) | ||||||
22 | is exempt from the provisions of Section 2-70, and the | ||||||
23 | exemption provided for under this item (27) applies for all | ||||||
24 | periods beginning May 30, 1995, but no claim for credit or | ||||||
25 | refund is allowed on or after January 1, 2008 (the | ||||||
26 | effective date of Public Act 95-88)
for such taxes paid |
| |||||||
| |||||||
1 | during the period beginning May 30, 2000 and ending on | ||||||
2 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
3 | (28) Computers and communications equipment utilized | ||||||
4 | for any
hospital
purpose
and equipment used in the | ||||||
5 | diagnosis,
analysis, or treatment of hospital patients | ||||||
6 | sold to a lessor who leases the
equipment, under a lease of | ||||||
7 | one year or longer executed or in effect at the
time of the | ||||||
8 | purchase, to a
hospital
that has been issued an active tax | ||||||
9 | exemption identification number by the
Department under | ||||||
10 | Section 1g of this Act.
| ||||||
11 | (29) Personal property sold to a lessor who leases the
| ||||||
12 | property, under a
lease of one year or longer executed or | ||||||
13 | in effect at the time of the purchase,
to a governmental | ||||||
14 | body
that has been issued an active tax exemption | ||||||
15 | identification number by the
Department under Section 1g of | ||||||
16 | this Act.
| ||||||
17 | (30) Beginning with taxable years ending on or after | ||||||
18 | December
31, 1995
and
ending with taxable years ending on | ||||||
19 | or before December 31, 2004,
personal property that is
| ||||||
20 | donated for disaster relief to be used in a State or | ||||||
21 | federally declared
disaster area in Illinois or bordering | ||||||
22 | Illinois by a manufacturer or retailer
that is registered | ||||||
23 | in this State to a corporation, society, association,
| ||||||
24 | foundation, or institution that has been issued a sales tax | ||||||
25 | exemption
identification number by the Department that | ||||||
26 | assists victims of the disaster
who reside within the |
| |||||||
| |||||||
1 | declared disaster area.
| ||||||
2 | (31) Beginning with taxable years ending on or after | ||||||
3 | December
31, 1995 and
ending with taxable years ending on | ||||||
4 | or before December 31, 2004, personal
property that is used | ||||||
5 | in the performance of infrastructure repairs in this
State, | ||||||
6 | including but not limited to municipal roads and streets, | ||||||
7 | access roads,
bridges, sidewalks, waste disposal systems, | ||||||
8 | water and sewer line extensions,
water distribution and | ||||||
9 | purification facilities, storm water drainage and
| ||||||
10 | retention facilities, and sewage treatment facilities, | ||||||
11 | resulting from a State
or federally declared disaster in | ||||||
12 | Illinois or bordering Illinois when such
repairs are | ||||||
13 | initiated on facilities located in the declared disaster | ||||||
14 | area
within 6 months after the disaster.
| ||||||
15 | (32) Beginning July 1, 1999, game or game birds sold at | ||||||
16 | a "game breeding
and
hunting preserve area" as that term is | ||||||
17 | used
in the
Wildlife Code. This paragraph is exempt from | ||||||
18 | the provisions
of
Section 2-70.
| ||||||
19 | (33) A motor vehicle, as that term is defined in | ||||||
20 | Section 1-146
of the
Illinois Vehicle Code, that is donated | ||||||
21 | to a corporation, limited liability
company, society, | ||||||
22 | association, foundation, or institution that is determined | ||||||
23 | by
the Department to be organized and operated exclusively | ||||||
24 | for educational
purposes. For purposes of this exemption, | ||||||
25 | "a corporation, limited liability
company, society, | ||||||
26 | association, foundation, or institution organized and
|
| |||||||
| |||||||
1 | operated
exclusively for educational purposes" means all | ||||||
2 | tax-supported public schools,
private schools that offer | ||||||
3 | systematic instruction in useful branches of
learning by | ||||||
4 | methods common to public schools and that compare favorably | ||||||
5 | in
their scope and intensity with the course of study | ||||||
6 | presented in tax-supported
schools, and vocational or | ||||||
7 | technical schools or institutes organized and
operated | ||||||
8 | exclusively to provide a course of study of not less than 6 | ||||||
9 | weeks
duration and designed to prepare individuals to | ||||||
10 | follow a trade or to pursue a
manual, technical, | ||||||
11 | mechanical, industrial, business, or commercial
| ||||||
12 | occupation.
| ||||||
13 | (34) Beginning January 1, 2000, personal property, | ||||||
14 | including food, purchased
through fundraising events for | ||||||
15 | the benefit of a public or private elementary or
secondary | ||||||
16 | school, a group of those schools, or one or more school | ||||||
17 | districts if
the events are sponsored by an entity | ||||||
18 | recognized by the school district that
consists primarily | ||||||
19 | of volunteers and includes parents and teachers of the
| ||||||
20 | school children. This paragraph does not apply to | ||||||
21 | fundraising events (i) for
the benefit of private home | ||||||
22 | instruction or (ii) for which the fundraising
entity | ||||||
23 | purchases the personal property sold at the events from | ||||||
24 | another
individual or entity that sold the property for the | ||||||
25 | purpose of resale by the
fundraising entity and that | ||||||
26 | profits from the sale to the fundraising entity.
This |
| |||||||
| |||||||
1 | paragraph is exempt from the provisions of Section 2-70.
| ||||||
2 | (35) Beginning January 1, 2000 and through December 31, | ||||||
3 | 2001, new or used
automatic vending machines that prepare | ||||||
4 | and serve hot food and beverages,
including coffee, soup, | ||||||
5 | and other items, and replacement parts for these
machines. | ||||||
6 | Beginning January 1, 2002 and through June 30, 2003, | ||||||
7 | machines
and parts for machines used in
commercial, | ||||||
8 | coin-operated amusement and vending business if a use or | ||||||
9 | occupation
tax is paid on the gross receipts derived from | ||||||
10 | the use of the commercial,
coin-operated amusement and | ||||||
11 | vending machines. This paragraph is exempt from
the | ||||||
12 | provisions of Section 2-70.
| ||||||
13 | (35-5) Beginning August 23, 2001 and through June 30, | ||||||
14 | 2016, food for human consumption that is to be consumed off
| ||||||
15 | the premises where it is sold (other than alcoholic | ||||||
16 | beverages, soft drinks,
and food that has been prepared for | ||||||
17 | immediate consumption) and prescription
and | ||||||
18 | nonprescription medicines, drugs, medical appliances, and | ||||||
19 | insulin, urine
testing materials, syringes, and needles | ||||||
20 | used by diabetics, for human use, when
purchased for use by | ||||||
21 | a person receiving medical assistance under Article V of
| ||||||
22 | the Illinois Public Aid Code who resides in a licensed | ||||||
23 | long-term care facility,
as defined in the Nursing Home | ||||||
24 | Care Act, or a licensed facility as defined in the ID/DD | ||||||
25 | Community Care Act, the MC/DD Act, or the Specialized | ||||||
26 | Mental Health Rehabilitation Act of 2013.
|
| |||||||
| |||||||
1 | (36) Beginning August 2, 2001, computers and | ||||||
2 | communications equipment
utilized for any hospital purpose | ||||||
3 | and equipment used in the diagnosis,
analysis, or treatment | ||||||
4 | of hospital patients sold to a lessor who leases the
| ||||||
5 | equipment, under a lease of one year or longer executed or | ||||||
6 | in effect at the
time of the purchase, to a hospital that | ||||||
7 | has been issued an active tax
exemption identification | ||||||
8 | number by the Department under Section 1g of this Act.
This | ||||||
9 | paragraph is exempt from the provisions of Section 2-70.
| ||||||
10 | (37) Beginning August 2, 2001, personal property sold | ||||||
11 | to a lessor who
leases the property, under a lease of one | ||||||
12 | year or longer executed or in effect
at the time of the | ||||||
13 | purchase, to a governmental body that has been issued an
| ||||||
14 | active tax exemption identification number by the | ||||||
15 | Department under Section 1g
of this Act. This paragraph is | ||||||
16 | exempt from the provisions of Section 2-70.
| ||||||
17 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
18 | 2016, tangible personal property purchased
from an | ||||||
19 | Illinois retailer by a taxpayer engaged in centralized | ||||||
20 | purchasing
activities in Illinois who will, upon receipt of | ||||||
21 | the property in Illinois,
temporarily store the property in | ||||||
22 | Illinois (i) for the purpose of subsequently
transporting | ||||||
23 | it outside this State for use or consumption thereafter | ||||||
24 | solely
outside this State or (ii) for the purpose of being | ||||||
25 | processed, fabricated, or
manufactured into, attached to, | ||||||
26 | or incorporated into other tangible personal
property to be |
| |||||||
| |||||||
1 | transported outside this State and thereafter used or | ||||||
2 | consumed
solely outside this State. The Director of Revenue | ||||||
3 | shall, pursuant to rules
adopted in accordance with the | ||||||
4 | Illinois Administrative Procedure Act, issue a
permit to | ||||||
5 | any taxpayer in good standing with the Department who is | ||||||
6 | eligible for
the exemption under this paragraph (38). The | ||||||
7 | permit issued under
this paragraph (38) shall authorize the | ||||||
8 | holder, to the extent and
in the manner specified in the | ||||||
9 | rules adopted under this Act, to purchase
tangible personal | ||||||
10 | property from a retailer exempt from the taxes imposed by
| ||||||
11 | this Act. Taxpayers shall maintain all necessary books and | ||||||
12 | records to
substantiate the use and consumption of all such | ||||||
13 | tangible personal property
outside of the State of | ||||||
14 | Illinois.
| ||||||
15 | (39) Beginning January 1, 2008, tangible personal | ||||||
16 | property used in the construction or maintenance of a | ||||||
17 | community water supply, as defined under Section 3.145 of | ||||||
18 | the Environmental Protection Act, that is operated by a | ||||||
19 | not-for-profit corporation that holds a valid water supply | ||||||
20 | permit issued under Title IV of the Environmental | ||||||
21 | Protection Act. This paragraph is exempt from the | ||||||
22 | provisions of Section 2-70.
| ||||||
23 | (40) Beginning January 1, 2010, materials, parts, | ||||||
24 | equipment, components, and furnishings incorporated into | ||||||
25 | or upon an aircraft as part of the modification, | ||||||
26 | refurbishment, completion, replacement, repair, or |
| |||||||
| |||||||
1 | maintenance of the aircraft. This exemption includes | ||||||
2 | consumable supplies used in the modification, | ||||||
3 | refurbishment, completion, replacement, repair, and | ||||||
4 | maintenance of aircraft, but excludes any materials, | ||||||
5 | parts, equipment, components, and consumable supplies used | ||||||
6 | in the modification, replacement, repair, and maintenance | ||||||
7 | of aircraft engines or power plants, whether such engines | ||||||
8 | or power plants are installed or uninstalled upon any such | ||||||
9 | aircraft. "Consumable supplies" include, but are not | ||||||
10 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
11 | lubricants, cleaning solution, latex gloves, and | ||||||
12 | protective films. This exemption applies only to the sale | ||||||
13 | of qualifying tangible personal property to persons who | ||||||
14 | modify, refurbish, complete, replace, or maintain an | ||||||
15 | aircraft and who (i) hold an Air Agency Certificate and are | ||||||
16 | empowered to operate an approved repair station by the | ||||||
17 | Federal Aviation Administration, (ii) have a Class IV | ||||||
18 | Rating, and (iii) conduct operations in accordance with | ||||||
19 | Part 145 of the Federal Aviation Regulations. The exemption | ||||||
20 | does not include aircraft operated by a commercial air | ||||||
21 | carrier providing scheduled passenger air service pursuant | ||||||
22 | to authority issued under Part 121 or Part 129 of the | ||||||
23 | Federal Aviation Regulations. The changes made to this | ||||||
24 | paragraph (40) by Public Act 98-534 are declarative of | ||||||
25 | existing law. | ||||||
26 | (41) Tangible personal property sold to a |
| |||||||
| |||||||
1 | public-facilities corporation, as described in Section | ||||||
2 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
3 | constructing or furnishing a municipal convention hall, | ||||||
4 | but only if the legal title to the municipal convention | ||||||
5 | hall is transferred to the municipality without any further | ||||||
6 | consideration by or on behalf of the municipality at the | ||||||
7 | time of the completion of the municipal convention hall or | ||||||
8 | upon the retirement or redemption of any bonds or other | ||||||
9 | debt instruments issued by the public-facilities | ||||||
10 | corporation in connection with the development of the | ||||||
11 | municipal convention hall. This exemption includes | ||||||
12 | existing public-facilities corporations as provided in | ||||||
13 | Section 11-65-25 of the Illinois Municipal Code. This | ||||||
14 | paragraph is exempt from the provisions of Section 2-70. | ||||||
15 | (42) Beginning January 1, 2017, menstrual pads, | ||||||
16 | tampons, and menstrual cups. | ||||||
17 | (43) Merchandise that is subject to the Rental Purchase | ||||||
18 | Agreement Occupation and Use Tax. The purchaser must | ||||||
19 | certify that the item is purchased to be rented subject to | ||||||
20 | a rental purchase agreement, as defined in the Rental | ||||||
21 | Purchase Agreement Act, and provide proof of registration | ||||||
22 | under the Rental Purchase Agreement Occupation and Use Tax | ||||||
23 | Act. This paragraph is exempt from the provisions of | ||||||
24 | Section 2-70. | ||||||
25 | (44) Beginning on January 1, 2020, qualified tangible | ||||||
26 | personal property used in the construction or operation of |
| |||||||
| |||||||
1 | a data center that has been granted a certificate of | ||||||
2 | exemption by the Department of Commerce and Economic | ||||||
3 | Opportunity, whether that tangible personal property is | ||||||
4 | purchased by the owner, operator, or tenant of the data | ||||||
5 | center or by a contractor or subcontractor of the owner, | ||||||
6 | operator, or tenant. Data centers that would have qualified | ||||||
7 | for a certificate of exemption prior to January 1, 2020 had | ||||||
8 | this amendatory Act of the 101st General Assembly been in | ||||||
9 | effect, may apply for and obtain an exemption for | ||||||
10 | subsequent purchases of computer equipment or enabling | ||||||
11 | software purchased or leased to upgrade, supplement, or | ||||||
12 | replace computer equipment or enabling software purchased | ||||||
13 | or leased in the original investment that would have | ||||||
14 | qualified. | ||||||
15 | The Department of Commerce and Economic Opportunity | ||||||
16 | shall grant a certificate of exemption under this item (44) | ||||||
17 | to qualified data centers as defined by Section 605-1025 of | ||||||
18 | the Department of Commerce and Economic Opportunity Law of | ||||||
19 | the
Civil Administrative Code of Illinois. | ||||||
20 | For the purposes of this item (44): | ||||||
21 | "Data center" means a building or a series of | ||||||
22 | buildings rehabilitated or constructed to house | ||||||
23 | working servers in one physical location or multiple | ||||||
24 | sites within the State of Illinois. | ||||||
25 | "Qualified tangible personal property" means: | ||||||
26 | electrical systems and equipment; climate control and |
| |||||||
| |||||||
1 | chilling equipment and systems; mechanical systems and | ||||||
2 | equipment; monitoring and secure systems; emergency | ||||||
3 | generators; hardware; computers; servers; data storage | ||||||
4 | devices; network connectivity equipment; racks; | ||||||
5 | cabinets; telecommunications cabling infrastructure; | ||||||
6 | raised floor systems; peripheral components or | ||||||
7 | systems; software; mechanical, electrical, or plumbing | ||||||
8 | systems; battery systems; cooling systems and towers; | ||||||
9 | temperature control systems; other cabling; and other | ||||||
10 | data center infrastructure equipment and systems | ||||||
11 | necessary to operate qualified tangible personal | ||||||
12 | property, including fixtures; and component parts of | ||||||
13 | any of the foregoing, including installation, | ||||||
14 | maintenance, repair, refurbishment, and replacement of | ||||||
15 | qualified tangible personal property to generate, | ||||||
16 | transform, transmit, distribute, or manage electricity | ||||||
17 | necessary to operate qualified tangible personal | ||||||
18 | property; and all other tangible personal property | ||||||
19 | that is essential to the operations of a computer data | ||||||
20 | center. The term "qualified tangible personal | ||||||
21 | property" also includes building materials physically | ||||||
22 | incorporated in to the qualifying data center. To | ||||||
23 | document the exemption allowed under this Section, the | ||||||
24 | retailer must obtain from the purchaser a copy of the | ||||||
25 | certificate of eligibility issued by the Department of | ||||||
26 | Commerce and Economic Opportunity. |
| |||||||
| |||||||
1 | This item (44) is exempt from the provisions of Section | ||||||
2 | 2-70. | ||||||
3 | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | ||||||
4 | 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff. | ||||||
5 | 1-1-18; 100-594, eff. 6-29-18; 100-863, eff. 8-14-18; | ||||||
6 | 100-1171, eff. 1-4-19; revised 1-8-19.)
| ||||||
7 | Section 25. The Electricity Excise Tax Law is amended by | ||||||
8 | changing Section 2-4 as follows:
| ||||||
9 | (35 ILCS 640/2-4)
| ||||||
10 | Sec. 2-4. Tax imposed.
| ||||||
11 | (a) Except as provided in subsection (b), a tax is
imposed | ||||||
12 | on the privilege
of using in this State electricity purchased | ||||||
13 | for use or
consumption and not for resale, other than by | ||||||
14 | municipal corporations owning and
operating a local | ||||||
15 | transportation system for public service, at the following
| ||||||
16 | rates per
kilowatt-hour delivered to the purchaser:
| ||||||
17 | (i) For the first 2000 kilowatt-hours used or
consumed | ||||||
18 | in a month: 0.330 cents per kilowatt-hour;
| ||||||
19 | (ii) For the next 48,000 kilowatt-hours used or
| ||||||
20 | consumed in a month: 0.319 cents per kilowatt-hour;
| ||||||
21 | (iii) For the next 50,000 kilowatt-hours used or
| ||||||
22 | consumed in a month: 0.303 cents per kilowatt-hour;
| ||||||
23 | (iv) For the next 400,000 kilowatt-hours used or
| ||||||
24 | consumed in a month: 0.297 cents per kilowatt-hour;
|
| |||||||
| |||||||
1 | (v) For the next 500,000 kilowatt-hours used or
| ||||||
2 | consumed in a month: 0.286 cents per kilowatt-hour;
| ||||||
3 | (vi) For the next 2,000,000 kilowatt-hours used or
| ||||||
4 | consumed in a month: 0.270 cents per kilowatt-hour;
| ||||||
5 | (vii) For the next 2,000,000 kilowatt-hours used or
| ||||||
6 | consumed in a month: 0.254 cents per kilowatt-hour;
| ||||||
7 | (viii) For the next 5,000,000 kilowatt-hours used
or | ||||||
8 | consumed in a month: 0.233 cents per kilowatt-hour;
| ||||||
9 | (ix) For the next 10,000,000 kilowatt-hours used or
| ||||||
10 | consumed in a month: 0.207 cents per kilowatt-hour;
| ||||||
11 | (x) For all electricity in excess of 20,000,000
| ||||||
12 | kilowatt-hours used or consumed in a month: 0.202 cents
per | ||||||
13 | kilowatt-hour.
| ||||||
14 | Provided, that in lieu of the foregoing rates, the tax
is | ||||||
15 | imposed on a self-assessing purchaser at the rate of 5.1%
of | ||||||
16 | the self-assessing purchaser's purchase price for
all | ||||||
17 | electricity distributed, supplied, furnished, sold,
| ||||||
18 | transmitted and delivered to the self-assessing purchaser in a
| ||||||
19 | month.
| ||||||
20 | (b) A tax is imposed on the privilege of using in this | ||||||
21 | State electricity
purchased from a municipal system or electric | ||||||
22 | cooperative, as defined in
Article XVII of the Public Utilities | ||||||
23 | Act, which has not made an election as
permitted by either | ||||||
24 | Section 17-200 or Section 17-300 of such Act, at the lesser
of | ||||||
25 | 0.32 cents per kilowatt hour of all electricity distributed, | ||||||
26 | supplied,
furnished, sold, transmitted, and delivered by such |
| |||||||
| |||||||
1 | municipal system or
electric cooperative to the purchaser or 5% | ||||||
2 | of each such purchaser's purchase
price for all electricity | ||||||
3 | distributed, supplied, furnished, sold, transmitted,
and | ||||||
4 | delivered by such municipal system or electric cooperative to | ||||||
5 | the
purchaser, whichever is the lower rate as applied to each | ||||||
6 | purchaser in each
billing period.
| ||||||
7 | (c) The tax imposed by this Section 2-4 is not imposed with
| ||||||
8 | respect to any use of electricity by business enterprises
| ||||||
9 | certified under Section 9-222.1 or 9-222.1A of the Public | ||||||
10 | Utilities Act,
as amended, to the extent of such exemption and | ||||||
11 | during the
time specified by the Department of Commerce and | ||||||
12 | Economic Opportunity; or with respect to any transaction in | ||||||
13 | interstate
commerce, or otherwise, to the extent to which such
| ||||||
14 | transaction may not, under the Constitution and statutes of
the | ||||||
15 | United States, be made the subject of taxation by this
State.
| ||||||
16 | (d) Beginning January 1, 2020, a business enterprise that | ||||||
17 | is certified as a qualified data center, as defined by | ||||||
18 | subsection (b) of the Data Center Investment Act, by the | ||||||
19 | Department of Revenue is exempt from the tax imposed under this | ||||||
20 | Section. The Department shall adopt rules to carry out the | ||||||
21 | provisions of this subsection including procedures for | ||||||
22 | applying for the exemption. The Department of Revenue shall | ||||||
23 | notify the public utility of the exemption status of the | ||||||
24 | business enterprise. The exemption shall take effect upon | ||||||
25 | certification of the qualifying data center. | ||||||
26 | (Source: P.A. 94-793, eff. 5-19-06.)
|
| |||||||
| |||||||
1 | Section 99. Effective date. This Act takes effect upon | ||||||
2 | becoming law.
|