SB0157 EnrolledLRB102 10128 HLH 16591 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4
ARTICLE 5. EDGE CREDIT

 
5    Section 5-5. The Economic Development for a Growing
6Economy Tax Credit Act is amended by changing Sections 5-5,
75-15, 5-20, and 5-77 as follows:
 
8    (35 ILCS 10/5-5)
9    Sec. 5-5. Definitions. As used in this Act:
10    "Agreement" means the Agreement between a Taxpayer and the
11Department under the provisions of Section 5-50 of this Act.
12    "Applicant" means a Taxpayer that is operating a business
13located or that the Taxpayer plans to locate within the State
14of Illinois and that is engaged in interstate or intrastate
15commerce for the purpose of manufacturing, processing,
16assembling, warehousing, or distributing products, conducting
17research and development, providing tourism services, or
18providing services in interstate commerce, office industries,
19or agricultural processing, but excluding retail, retail food,
20health, or professional services. "Applicant" does not include
21a Taxpayer who closes or substantially reduces an operation at
22one location in the State and relocates substantially the same

 

 

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1operation to another location in the State. This does not
2prohibit a Taxpayer from expanding its operations at another
3location in the State, provided that existing operations of a
4similar nature located within the State are not closed or
5substantially reduced. This also does not prohibit a Taxpayer
6from moving its operations from one location in the State to
7another location in the State for the purpose of expanding the
8operation provided that the Department determines that
9expansion cannot reasonably be accommodated within the
10municipality in which the business is located, or in the case
11of a business located in an incorporated area of the county,
12within the county in which the business is located, after
13conferring with the chief elected official of the municipality
14or county and taking into consideration any evidence offered
15by the municipality or county regarding the ability to
16accommodate expansion within the municipality or county.
17    "Credit" means the amount agreed to between the Department
18and Applicant under this Act, but not to exceed the lesser of:
19(1) the sum of (i) 50% of the Incremental Income Tax
20attributable to New Employees at the Applicant's project and
21(ii) 10% of the training costs of New Employees; or (2) 100% of
22the Incremental Income Tax attributable to New Employees at
23the Applicant's project. However, if the project is located in
24an underserved area, then the amount of the Credit may not
25exceed the lesser of: (1) the sum of (i) 75% of the Incremental
26Income Tax attributable to New Employees at the Applicant's

 

 

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1project and (ii) 10% of the training costs of New Employees; or
2(2) 100% of the Incremental Income Tax attributable to New
3Employees at the Applicant's project. If an Applicant agrees
4to hire the required number of New Employees, then the maximum
5amount of the Credit for that Applicant may be increased by an
6amount not to exceed 25% of the Incremental Income Tax
7attributable to retained employees at the Applicant's project;
8provided that, in order to receive the increase for retained
9employees, the Applicant must provide the additional evidence
10required under paragraph (3) of subsection (b) of Section
115-25.
12    "Department" means the Department of Commerce and Economic
13Opportunity.
14    "Director" means the Director of Commerce and Economic
15Opportunity.
16    "Full-time Employee" means an individual who is employed
17for consideration for at least 35 hours each week or who
18renders any other standard of service generally accepted by
19industry custom or practice as full-time employment. An
20individual for whom a W-2 is issued by a Professional Employer
21Organization (PEO) is a full-time employee if employed in the
22service of the Applicant for consideration for at least 35
23hours each week or who renders any other standard of service
24generally accepted by industry custom or practice as full-time
25employment to Applicant.
26    "Incremental Income Tax" means the total amount withheld

 

 

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1during the taxable year from the compensation of New Employees
2and, if applicable, retained employees under Article 7 of the
3Illinois Income Tax Act arising from employment at a project
4that is the subject of an Agreement.
5    "New Construction EDGE Agreement" means the Agreement
6between a Taxpayer and the Department under the provisions of
7Section 5-51 of this Act.
8    "New Construction EDGE Credit" means an amount agreed to
9between the Department and the Applicant under this Act as
10part of a New Construction EDGE Agreement that does not exceed
1150% of the Incremental Income Tax attributable to New
12Construction EDGE Employees at the Applicant's project;
13however, if the New Construction EDGE Project is located in an
14underserved area, then the amount of the New Construction EDGE
15Credit may not exceed 75% of the Incremental Income Tax
16attributable to New Construction EDGE Employees at the
17Applicant's New Construction EDGE Project.
18    "New Construction EDGE Employee" means a laborer or worker
19who is employed by an Illinois contractor or subcontractor in
20the actual construction work on the site of a New Construction
21EDGE Project, pursuant to a New Construction EDGE Agreement.
22    "New Construction EDGE Incremental Income Tax" means the
23total amount withheld during the taxable year from the
24compensation of New Construction EDGE Employees.
25    "New Construction EDGE Project" means the building of a
26Taxpayer's structure or building, or making improvements of

 

 

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1any kind to real property. "New Construction EDGE Project"
2does not include the routine operation, routine repair, or
3routine maintenance of existing structures, buildings, or real
4property.
5    "New Employee" means:
6        (a) A Full-time Employee first employed by a Taxpayer
7    in the project that is the subject of an Agreement and who
8    is hired after the Taxpayer enters into the tax credit
9    Agreement.
10        (b) The term "New Employee" does not include:
11            (1) an employee of the Taxpayer who performs a job
12        that was previously performed by another employee, if
13        that job existed for at least 6 months before hiring
14        the employee;
15            (2) an employee of the Taxpayer who was previously
16        employed in Illinois by a Related Member of the
17        Taxpayer and whose employment was shifted to the
18        Taxpayer after the Taxpayer entered into the tax
19        credit Agreement; or
20            (3) a child, grandchild, parent, or spouse, other
21        than a spouse who is legally separated from the
22        individual, of any individual who has a direct or an
23        indirect ownership interest of at least 5% in the
24        profits, capital, or value of the Taxpayer.
25        (c) Notwithstanding paragraph (1) of subsection (b),
26    an employee may be considered a New Employee under the

 

 

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1    Agreement if the employee performs a job that was
2    previously performed by an employee who was:
3            (1) treated under the Agreement as a New Employee;
4        and
5            (2) promoted by the Taxpayer to another job.
6        (d) Notwithstanding subsection (a), the Department may
7    award Credit to an Applicant with respect to an employee
8    hired prior to the date of the Agreement if:
9            (1) the Applicant is in receipt of a letter from
10        the Department stating an intent to enter into a
11        credit Agreement;
12            (2) the letter described in paragraph (1) is
13        issued by the Department not later than 15 days after
14        the effective date of this Act; and
15            (3) the employee was hired after the date the
16        letter described in paragraph (1) was issued.
17    "Noncompliance Date" means, in the case of a Taxpayer that
18is not complying with the requirements of the Agreement or the
19provisions of this Act, the day following the last date upon
20which the Taxpayer was in compliance with the requirements of
21the Agreement and the provisions of this Act, as determined by
22the Director, pursuant to Section 5-65.
23    "Pass Through Entity" means an entity that is exempt from
24the tax under subsection (b) or (c) of Section 205 of the
25Illinois Income Tax Act.
26    "Professional Employer Organization" (PEO) means an

 

 

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1employee leasing company, as defined in Section 206.1(A)(2) of
2the Illinois Unemployment Insurance Act.
3    "Related Member" means a person that, with respect to the
4Taxpayer during any portion of the taxable year, is any one of
5the following:
6        (1) An individual stockholder, if the stockholder and
7    the members of the stockholder's family (as defined in
8    Section 318 of the Internal Revenue Code) own directly,
9    indirectly, beneficially, or constructively, in the
10    aggregate, at least 50% of the value of the Taxpayer's
11    outstanding stock.
12        (2) A partnership, estate, or trust and any partner or
13    beneficiary, if the partnership, estate, or trust, and its
14    partners or beneficiaries own directly, indirectly,
15    beneficially, or constructively, in the aggregate, at
16    least 50% of the profits, capital, stock, or value of the
17    Taxpayer.
18        (3) A corporation, and any party related to the
19    corporation in a manner that would require an attribution
20    of stock from the corporation to the party or from the
21    party to the corporation under the attribution rules of
22    Section 318 of the Internal Revenue Code, if the Taxpayer
23    owns directly, indirectly, beneficially, or constructively
24    at least 50% of the value of the corporation's outstanding
25    stock.
26        (4) A corporation and any party related to that

 

 

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1    corporation in a manner that would require an attribution
2    of stock from the corporation to the party or from the
3    party to the corporation under the attribution rules of
4    Section 318 of the Internal Revenue Code, if the
5    corporation and all such related parties own in the
6    aggregate at least 50% of the profits, capital, stock, or
7    value of the Taxpayer.
8        (5) A person to or from whom there is attribution of
9    stock ownership in accordance with Section 1563(e) of the
10    Internal Revenue Code, except, for purposes of determining
11    whether a person is a Related Member under this paragraph,
12    20% shall be substituted for 5% wherever 5% appears in
13    Section 1563(e) of the Internal Revenue Code.
14    "Startup taxpayer" means a corporation, partnership, or
15other entity incorporated or organized no more than 5 years
16before the filing of an application for an Agreement that has
17never had any Illinois income tax liability, excluding any
18Illinois income tax liability of a Related Member which shall
19not be attributed to the startup taxpayer.
20    "Taxpayer" means an individual, corporation, partnership,
21or other entity that has any Illinois Income Tax liability.
22    Until July 1, 2022, "underserved "Underserved area" means
23a geographic area that meets one or more of the following
24conditions:
25        (1) the area has a poverty rate of at least 20%
26    according to the latest federal decennial census;

 

 

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1        (2) 75% or more of the children in the area
2    participate in the federal free lunch program according to
3    reported statistics from the State Board of Education;
4        (3) at least 20% of the households in the area receive
5    assistance under the Supplemental Nutrition Assistance
6    Program (SNAP); or
7        (4) the area has an average unemployment rate, as
8    determined by the Illinois Department of Employment
9    Security, that is more than 120% of the national
10    unemployment average, as determined by the U.S. Department
11    of Labor, for a period of at least 2 consecutive calendar
12    years preceding the date of the application.
13    On and after July 1, 2022, "underserved area" means a
14geographic area that meets one or more of the following
15conditions:
16        (1) the area has a poverty rate of at least 20%
17    according to the latest American Community Survey;
18        (2) 35% or more of the families with children in the
19    area are living below 130% of the poverty line, according
20    to the latest American Community Survey;
21        (3) at least 20% of the households in the area receive
22    assistance under the Supplemental Nutrition Assistance
23    Program (SNAP); or
24        (4) the area has an average unemployment rate, as
25    determined by the Illinois Department of Employment
26    Security, that is more than 120% of the national

 

 

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1    unemployment average, as determined by the U.S. Department
2    of Labor, for a period of at least 2 consecutive calendar
3    years preceding the date of the application.
4(Source: P.A. 101-9, eff. 6-5-19; 102-330, eff. 1-1-22.)
 
5    (35 ILCS 10/5-15)
6    Sec. 5-15. Tax Credit Awards. Subject to the conditions
7set forth in this Act, a Taxpayer is entitled to a Credit
8against or, as described in subsection (g) of this Section, a
9payment towards taxes imposed pursuant to subsections (a) and
10(b) of Section 201 of the Illinois Income Tax Act that may be
11imposed on the Taxpayer for a taxable year beginning on or
12after January 1, 1999, if the Taxpayer is awarded a Credit by
13the Department under this Act for that taxable year.
14    (a) The Department shall make Credit awards under this Act
15to foster job creation and retention in Illinois.
16    (b) A person that proposes a project to create new jobs in
17Illinois must enter into an Agreement with the Department for
18the Credit under this Act.
19    (c) The Credit shall be claimed for the taxable years
20specified in the Agreement.
21    (d) The Credit shall not exceed the Incremental Income Tax
22attributable to the project that is the subject of the
23Agreement.
24    (e) Nothing herein shall prohibit a Tax Credit Award to an
25Applicant that uses a PEO if all other award criteria are

 

 

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1satisfied.
2    (f) In lieu of the Credit allowed under this Act against
3the taxes imposed pursuant to subsections (a) and (b) of
4Section 201 of the Illinois Income Tax Act for any taxable year
5ending on or after December 31, 2009, for Taxpayers that
6entered into Agreements prior to January 1, 2015 and otherwise
7meet the criteria set forth in this subsection (f), the
8Taxpayer may elect to claim the Credit against its obligation
9to pay over withholding under Section 704A of the Illinois
10Income Tax Act.
11        (1) The election under this subsection (f) may be made
12    only by a Taxpayer that (i) is primarily engaged in one of
13    the following business activities: water purification and
14    treatment, motor vehicle metal stamping, automobile
15    manufacturing, automobile and light duty motor vehicle
16    manufacturing, motor vehicle manufacturing, light truck
17    and utility vehicle manufacturing, heavy duty truck
18    manufacturing, motor vehicle body manufacturing, cable
19    television infrastructure design or manufacturing, or
20    wireless telecommunication or computing terminal device
21    design or manufacturing for use on public networks and
22    (ii) meets the following criteria:
23            (A) the Taxpayer (i) had an Illinois net loss or an
24        Illinois net loss deduction under Section 207 of the
25        Illinois Income Tax Act for the taxable year in which
26        the Credit is awarded, (ii) employed a minimum of

 

 

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1        1,000 full-time employees in this State during the
2        taxable year in which the Credit is awarded, (iii) has
3        an Agreement under this Act on December 14, 2009 (the
4        effective date of Public Act 96-834), and (iv) is in
5        compliance with all provisions of that Agreement;
6            (B) the Taxpayer (i) had an Illinois net loss or an
7        Illinois net loss deduction under Section 207 of the
8        Illinois Income Tax Act for the taxable year in which
9        the Credit is awarded, (ii) employed a minimum of
10        1,000 full-time employees in this State during the
11        taxable year in which the Credit is awarded, and (iii)
12        has applied for an Agreement within 365 days after
13        December 14, 2009 (the effective date of Public Act
14        96-834);
15            (C) the Taxpayer (i) had an Illinois net operating
16        loss carryforward under Section 207 of the Illinois
17        Income Tax Act in a taxable year ending during
18        calendar year 2008, (ii) has applied for an Agreement
19        within 150 days after the effective date of this
20        amendatory Act of the 96th General Assembly, (iii)
21        creates at least 400 new jobs in Illinois, (iv)
22        retains at least 2,000 jobs in Illinois that would
23        have been at risk of relocation out of Illinois over a
24        10-year period, and (v) makes a capital investment of
25        at least $75,000,000;
26            (D) the Taxpayer (i) had an Illinois net operating

 

 

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1        loss carryforward under Section 207 of the Illinois
2        Income Tax Act in a taxable year ending during
3        calendar year 2009, (ii) has applied for an Agreement
4        within 150 days after the effective date of this
5        amendatory Act of the 96th General Assembly, (iii)
6        creates at least 150 new jobs, (iv) retains at least
7        1,000 jobs in Illinois that would have been at risk of
8        relocation out of Illinois over a 10-year period, and
9        (v) makes a capital investment of at least
10        $57,000,000; or
11            (E) the Taxpayer (i) employed at least 2,500
12        full-time employees in the State during the year in
13        which the Credit is awarded, (ii) commits to make at
14        least $500,000,000 in combined capital improvements
15        and project costs under the Agreement, (iii) applies
16        for an Agreement between January 1, 2011 and June 30,
17        2011, (iv) executes an Agreement for the Credit during
18        calendar year 2011, and (v) was incorporated no more
19        than 5 years before the filing of an application for an
20        Agreement.
21        (1.5) The election under this subsection (f) may also
22    be made by a Taxpayer for any Credit awarded pursuant to an
23    agreement that was executed between January 1, 2011 and
24    June 30, 2011, if the Taxpayer (i) is primarily engaged in
25    the manufacture of inner tubes or tires, or both, from
26    natural and synthetic rubber, (ii) employs a minimum of

 

 

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1    2,400 full-time employees in Illinois at the time of
2    application, (iii) creates at least 350 full-time jobs and
3    retains at least 250 full-time jobs in Illinois that would
4    have been at risk of being created or retained outside of
5    Illinois, and (iv) makes a capital investment of at least
6    $200,000,000 at the project location.
7        (1.6) The election under this subsection (f) may also
8    be made by a Taxpayer for any Credit awarded pursuant to an
9    agreement that was executed within 150 days after the
10    effective date of this amendatory Act of the 97th General
11    Assembly, if the Taxpayer (i) is primarily engaged in the
12    operation of a discount department store, (ii) maintains
13    its corporate headquarters in Illinois, (iii) employs a
14    minimum of 4,250 full-time employees at its corporate
15    headquarters in Illinois at the time of application, (iv)
16    retains at least 4,250 full-time jobs in Illinois that
17    would have been at risk of being relocated outside of
18    Illinois, (v) had a minimum of $40,000,000,000 in total
19    revenue in 2010, and (vi) makes a capital investment of at
20    least $300,000,000 at the project location.
21        (1.7) Notwithstanding any other provision of law, the
22    election under this subsection (f) may also be made by a
23    Taxpayer for any Credit awarded pursuant to an agreement
24    that was executed or applied for on or after July 1, 2011
25    and on or before March 31, 2012, if the Taxpayer is
26    primarily engaged in the manufacture of original and

 

 

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1    aftermarket filtration parts and products for automobiles,
2    motor vehicles, light duty motor vehicles, light trucks
3    and utility vehicles, and heavy duty trucks, (ii) employs
4    a minimum of 1,000 full-time employees in Illinois at the
5    time of application, (iii) creates at least 250 full-time
6    jobs in Illinois, (iv) relocates its corporate
7    headquarters to Illinois from another state, and (v) makes
8    a capital investment of at least $4,000,000 at the project
9    location.
10        (1.8) Notwithstanding any other provision of law, the
11    election under this subsection (f) may also be made by a
12    startup taxpayer for any Credit awarded pursuant to an
13    Agreement that was executed or applied for on or after the
14    effective date of this amendatory Act of the 102nd General
15    Assembly, if the startup taxpayer, without considering any
16    Related Member or other investor, (i) has never had any
17    Illinois income tax liability and (ii) was incorporated no
18    more than 5 years before the filing of an application for
19    an Agreement. Any such election under this paragraph (1.8)
20    shall be effective unless and until such startup taxpayer
21    has any Illinois income tax liability. This election under
22    this paragraph (1.8) shall automatically terminate when
23    the startup taxpayer has any Illinois income tax liability
24    at the end of any taxable year during the term of the
25    Agreement. Thereafter, the startup taxpayer may receive a
26    Credit, taking into account any benefits previously

 

 

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1    enjoyed or received by way of the election under this
2    paragraph (1.8), so long as the startup taxpayer remains
3    in compliance with the terms and conditions of the
4    Agreement.
5        (2) An election under this subsection shall allow the
6    credit to be taken against payments otherwise due under
7    Section 704A of the Illinois Income Tax Act during the
8    first calendar year beginning after the end of the taxable
9    year in which the credit is awarded under this Act.
10        (3) The election shall be made in the form and manner
11    required by the Illinois Department of Revenue and, once
12    made, shall be irrevocable.
13        (4) If a Taxpayer who meets the requirements of
14    subparagraph (A) of paragraph (1) of this subsection (f)
15    elects to claim the Credit against its withholdings as
16    provided in this subsection (f), then, on and after the
17    date of the election, the terms of the Agreement between
18    the Taxpayer and the Department may not be further amended
19    during the term of the Agreement.
20    (g) A pass-through entity that has been awarded a credit
21under this Act, its shareholders, or its partners may treat
22some or all of the credit awarded pursuant to this Act as a tax
23payment for purposes of the Illinois Income Tax Act. The term
24"tax payment" means a payment as described in Article 6 or
25Article 8 of the Illinois Income Tax Act or a composite payment
26made by a pass-through entity on behalf of any of its

 

 

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1shareholders or partners to satisfy such shareholders' or
2partners' taxes imposed pursuant to subsections (a) and (b) of
3Section 201 of the Illinois Income Tax Act. In no event shall
4the amount of the award credited pursuant to this Act exceed
5the Illinois income tax liability of the pass-through entity
6or its shareholders or partners for the taxable year.
7(Source: P.A. 100-511, eff. 9-18-17.)
 
8    (35 ILCS 10/5-20)
9    Sec. 5-20. Application for a project to create and retain
10new jobs.
11    (a) Any Taxpayer proposing a project located or planned to
12be located in Illinois may request consideration for
13designation of its project, by formal written letter of
14request or by formal application to the Department, in which
15the Applicant states its intent to make at least a specified
16level of investment and intends to hire or retain a specified
17number of full-time employees at a designated location in
18Illinois. As circumstances require, the Department may require
19a formal application from an Applicant and a formal letter of
20request for assistance.
21    (b) In order to qualify for Credits under this Act, an
22Applicant's project must:
23        (1) if the Applicant has more than 100 employees,
24    involve an investment of at least $2,500,000 in capital
25    improvements to be placed in service within the State as a

 

 

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1    direct result of the project; if the Applicant has 100 or
2    fewer employees, then there is no capital investment
3    requirement;
4        (1.5) if the Applicant has more than 100 employees,
5    employ a number of new employees in the State equal to the
6    lesser of (A) 10% of the number of full-time employees
7    employed by the applicant world-wide on the date the
8    application is filed with the Department or (B) 50 New
9    Employees; and, if the Applicant has 100 or fewer
10    employees, employ a number of new employees in the State
11    equal to the lesser of (A) 5% of the number of full-time
12    employees employed by the applicant world-wide on the date
13    the application is filed with the Department or (B) 50 New
14    Employees;
15        (1.6) if the Applicant is a startup taxpayer, the
16    employees employed by Related Members shall not be
17    attributed to the Applicant for purposes of determining
18    the capital investment or job creation requirements under
19    this subsection (b);
20        (2) (blank);
21        (3) (blank); and
22        (4) include an annual sexual harassment policy report
23    as provided under Section 5-58.
24    (c) After receipt of an application, the Department may
25enter into an Agreement with the Applicant if the application
26is accepted in accordance with Section 5-25.

 

 

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1(Source: P.A. 100-511, eff. 9-18-17; 100-698, eff. 1-1-19;
2101-81, eff. 7-12-19.)
 
3    (35 ILCS 10/5-77)
4    Sec. 5-77. Sunset of new Agreements. The Department shall
5not enter into any new Agreements under the provisions of
6Section 5-50 of this Act after June 30, 2027 June 30, 2022.
7(Source: P.A. 99-925, eff. 1-20-17; 100-511, eff. 9-18-17.)
 
8    Section 5-10. The River Edge Redevelopment Zone Act is
9amended by changing Section 10-3 as follows:
 
10    (65 ILCS 115/10-3)
11    Sec. 10-3. Definitions. As used in this Act:
12    "Department" means the Department of Commerce and Economic
13Opportunity.
14    "River Edge Redevelopment Zone" means an area of the State
15certified by the Department as a River Edge Redevelopment Zone
16pursuant to this Act.
17    "Designated zone organization" means an association or
18entity: (1) the members of which are substantially all
19residents of the River Edge Redevelopment Zone or of the
20municipality in which the River Edge Redevelopment Zone is
21located; (2) the board of directors of which is elected by the
22members of the organization; (3) that satisfies the criteria
23set forth in Section 501(c) (3) or 501(c) (4) of the Internal

 

 

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1Revenue Code; and (4) that exists primarily for the purpose of
2performing within the zone, for the benefit of the residents
3and businesses thereof, any of the functions set forth in
4Section 8 of this Act.
5    "Incremental income tax" means the total amount withheld
6during the taxable year from the compensation of River Edge
7Construction Jobs Employees.
8    "Agency" means: each officer, board, commission, and
9agency created by the Constitution, in the executive branch of
10State government, other than the State Board of Elections;
11each officer, department, board, commission, agency,
12institution, authority, university, and body politic and
13corporate of the State; each administrative unit or corporate
14outgrowth of the State government that is created by or
15pursuant to statute, other than units of local government and
16their officers, school districts, and boards of election
17commissioners; and each administrative unit or corporate
18outgrowth of the above and as may be created by executive order
19of the Governor. No entity is an "agency" for the purposes of
20this Act unless the entity is authorized by law to make rules
21or regulations.
22    "River Edge construction jobs credit" means an amount
23equal to 50% of the incremental income tax attributable to
24River Edge construction employees employed on a River Edge
25construction jobs project. However, the amount may equal 75%
26of the incremental income tax attributable to River Edge

 

 

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1construction employees employed on a River Edge construction
2jobs project located in an underserved area. The total
3aggregate amount of credits awarded under the Blue Collar Jobs
4Act (Article 20 of this amendatory Act of the 101st General
5Assembly) shall not exceed $20,000,000 in any State fiscal
6year.
7    "River Edge construction jobs employee" means a laborer or
8worker who is employed by an Illinois contractor or
9subcontractor in the actual construction work on the site of a
10River Edge construction jobs project.
11    "River Edge construction jobs project" means building a
12structure or building, or making improvements of any kind to
13real property, in a River Edge Redevelopment Zone that is
14built or improved in the course of completing a qualified
15rehabilitation plan. "River Edge construction jobs project"
16does not include the routine operation, routine repair, or
17routine maintenance of existing structures, buildings, or real
18property.
19    "Rule" means each agency statement of general
20applicability that implements, applies, interprets, or
21prescribes law or policy, but does not include (i) statements
22concerning only the internal management of an agency and not
23affecting private rights or procedures available to persons or
24entities outside the agency, (ii) intra-agency memoranda, or
25(iii) the prescription of standardized forms.
26    Until July 1, 2022, "underserved "Underserved area" means

 

 

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1a geographic area that meets one or more of the following
2conditions:
3        (1) the area has a poverty rate of at least 20%
4    according to the latest federal decennial census;
5        (2) 75% or more of the children in the area
6    participate in the federal free lunch program according to
7    reported statistics from the State Board of Education;
8        (3) at least 20% of the households in the area receive
9    assistance under the Supplemental Nutrition Assistance
10    Program (SNAP); or
11        (4) the area has an average unemployment rate, as
12    determined by the Illinois Department of Employment
13    Security, that is more than 120% of the national
14    unemployment average, as determined by the U.S. Department
15    of Labor, for a period of at least 2 consecutive calendar
16    years preceding the date of the application.
17    Beginning July 1, 2022, "Underserved area" means a
18geographic area that meets one or more of the following
19conditions:
20        (1) the area has a poverty rate of at least 20%
21    according to the latest American Community Survey;
22        (2) 35% or more of the families with children in the
23    area are living below 130% of the poverty line, according
24    to the latest American Community Survey;
25        (3) at least 20% of the households in the area receive
26    assistance under the Supplemental Nutrition Assistance

 

 

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1    Program (SNAP); or
2        (4) the area has an average unemployment rate, as
3    determined by the Illinois Department of Employment
4    Security, that is more than 120% of the national
5    unemployment average, as determined by the U.S. Department
6    of Labor, for a period of at least 2 consecutive calendar
7    years preceding the date of the application.
8(Source: P.A. 101-9, eff. 6-5-19.)
 
9
ARTICLE 10. FILM PRODUCTION TAX CREDIT

 
10    Section 10-5. The Illinois Income Tax Act is amended by
11changing Section 213 as follows:
 
12    (35 ILCS 5/213)
13    Sec. 213. Film production services credit. For tax years
14beginning on or after January 1, 2004, a taxpayer who has been
15awarded a tax credit under the Film Production Services Tax
16Credit Act or under the Film Production Services Tax Credit
17Act of 2008 is entitled to a credit against the taxes imposed
18under subsections (a) and (b) of Section 201 of this Act in an
19amount determined by the Department of Commerce and Economic
20Opportunity under those Acts. If the taxpayer is a partnership
21or Subchapter S corporation, the credit is allowed to the
22partners or shareholders in accordance with the determination
23of income and distributive share of income under Sections 702

 

 

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1and 704 and Subchapter S of the Internal Revenue Code.
2    A transfer of this credit may be made by the taxpayer
3earning the credit within one year after the credit is awarded
4in accordance with rules adopted by the Department of Commerce
5and Economic Opportunity. Beginning July 1, 2023, if a credit
6is transferred under this Section by the taxpayer, then the
7transferor taxpayer shall pay to the Department of Commerce
8and Economic Opportunity, upon notification of a transfer, a
9fee equal to 2.5% of the transferred credit amount eligible
10for nonresident wages, as described in Section 10 of the Film
11Production Services Tax Credit Act of 2008, and an additional
12fee of 0.25% of the total amount of the transferred credit that
13is not calculated on nonresident wages, which shall be
14deposited into the Illinois Production Workforce Development
15Fund.
16    The Department, in cooperation with the Department of
17Commerce and Economic Opportunity, must prescribe rules to
18enforce and administer the provisions of this Section. This
19Section is exempt from the provisions of Section 250 of this
20Act.
21    The credit may not be carried back. If the amount of the
22credit exceeds the tax liability for the year, the excess may
23be carried forward and applied to the tax liability of the 5
24taxable years following the excess credit year. The credit
25shall be applied to the earliest year for which there is a tax
26liability. If there are credits from more than one tax year

 

 

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1that are available to offset a liability, the earlier credit
2shall be applied first. In no event shall a credit under this
3Section reduce the taxpayer's liability to less than zero.
4(Source: P.A. 94-171, eff. 7-11-05; 95-720, eff. 5-27-08.)
 
5    Section 10-10. The Film Production Services Tax Credit Act
6of 2008 is amended by changing Sections 10 and 42 and by adding
7Section 46 as follows:
 
8    (35 ILCS 16/10)
9    Sec. 10. Definitions. As used in this Act:
10    "Accredited production" means: (i) for productions
11commencing before May 1, 2006, a film, video, or television
12production that has been certified by the Department in which
13the aggregate Illinois labor expenditures included in the cost
14of the production, in the period that ends 12 months after the
15time principal filming or taping of the production began,
16exceed $100,000 for productions of 30 minutes or longer, or
17$50,000 for productions of less than 30 minutes; and (ii) for
18productions commencing on or after May 1, 2006, a film, video,
19or television production that has been certified by the
20Department in which the Illinois production spending included
21in the cost of production in the period that ends 12 months
22after the time principal filming or taping of the production
23began exceeds $100,000 for productions of 30 minutes or longer
24or exceeds $50,000 for productions of less than 30 minutes.

 

 

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1"Accredited production" does not include a production that:
2        (1) is news, current events, or public programming, or
3    a program that includes weather or market reports;
4        (2) is a talk show;
5        (3) is a production in respect of a game,
6    questionnaire, or contest;
7        (4) is a sports event or activity;
8        (5) is a gala presentation or awards show;
9        (6) is a finished production that solicits funds;
10        (7) is a production produced by a film production
11    company if records, as required by 18 U.S.C. 2257, are to
12    be maintained by that film production company with respect
13    to any performer portrayed in that single media or
14    multimedia program; or
15        (8) is a production produced primarily for industrial,
16    corporate, or institutional purposes.
17    "Accredited animated production" means an accredited
18production in which movement and characters' performances are
19created using a frame-by-frame technique and a significant
20number of major characters are animated. Motion capture by
21itself is not an animation technique.
22    "Accredited production certificate" means a certificate
23issued by the Department certifying that the production is an
24accredited production that meets the guidelines of this Act.
25    "Applicant" means a taxpayer that is a film production
26company that is operating or has operated an accredited

 

 

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1production located within the State of Illinois and that (i)
2owns the copyright in the accredited production throughout the
3Illinois production period or (ii) has contracted directly
4with the owner of the copyright in the accredited production
5or a person acting on behalf of the owner to provide services
6for the production, where the owner of the copyright is not an
7eligible production corporation.
8    "Credit" means:
9        (1) for an accredited production approved by the
10    Department on or before January 1, 2005 and commencing
11    before May 1, 2006, the amount equal to 25% of the Illinois
12    labor expenditure approved by the Department. The
13    applicant is deemed to have paid, on its balance due day
14    for the year, an amount equal to 25% of its qualified
15    Illinois labor expenditure for the tax year. For Illinois
16    labor expenditures generated by the employment of
17    residents of geographic areas of high poverty or high
18    unemployment, as determined by the Department, in an
19    accredited production commencing before May 1, 2006 and
20    approved by the Department after January 1, 2005, the
21    applicant shall receive an enhanced credit of 10% in
22    addition to the 25% credit; and
23        (2) for an accredited production commencing on or
24    after May 1, 2006, the amount equal to:
25            (i) 20% of the Illinois production spending for
26        the taxable year; plus

 

 

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1            (ii) 15% of the Illinois labor expenditures
2        generated by the employment of residents of geographic
3        areas of high poverty or high unemployment, as
4        determined by the Department; and
5        (3) for an accredited production commencing on or
6    after January 1, 2009, the amount equal to:
7            (i) 30% of the Illinois production spending for
8        the taxable year; plus
9            (ii) 15% of the Illinois labor expenditures
10        generated by the employment of residents of geographic
11        areas of high poverty or high unemployment, as
12        determined by the Department.
13    "Department" means the Department of Commerce and Economic
14Opportunity.
15    "Director" means the Director of Commerce and Economic
16Opportunity.
17    "Illinois labor expenditure" means salary or wages paid to
18employees of the applicant for services on the accredited
19production.
20    To qualify as an Illinois labor expenditure, the
21expenditure must be:
22        (1) Reasonable in the circumstances.
23        (2) Included in the federal income tax basis of the
24    property.
25        (3) Incurred by the applicant for services on or after
26    January 1, 2004.

 

 

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1        (4) Incurred for the production stages of the
2    accredited production, from the final script stage to the
3    end of the post-production stage.
4        (5) Limited to the first $25,000 of wages paid or
5    incurred to each employee of a production commencing
6    before May 1, 2006 and the first $100,000 of wages paid or
7    incurred to each employee of a production commencing on or
8    after May 1, 2006 and prior to July 1, 2022. For
9    productions commencing on or after July 1, 2022, limited
10    to the first $500,000 of wages paid or incurred to each
11    nonresident or resident employee of a production company
12    or loan out company that provides in-State services to a
13    production, whether those wages are paid or incurred by
14    the production company, loan out company, or both, subject
15    to withholding payments provided for in Article 7 of the
16    Illinois Income Tax Act. For purposes of calculating
17    Illinois labor expenditures for a television series, the
18    nonresident wage limitations provided under this
19    subparagraph are applied to the entire season.
20        (6) For a production commencing before May 1, 2006,
21    exclusive of the salary or wages paid to or incurred for
22    the 2 highest paid employees of the production.
23        (7) Directly attributable to the accredited
24    production.
25        (8) (Blank).
26        (9) Prior to July 1, 2022, paid Paid to persons

 

 

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1    resident in Illinois at the time the payments were made.
2    For a production commencing on or after July 1, 2022, paid
3    to persons resident in Illinois and nonresidents at the
4    time the payments were made. For purposes of this
5    subparagraph, only wages paid to nonresidents working in
6    the following positions shall be considered Illinois labor
7    expenditures: Writer, Director, Director of Photography,
8    Production Designer, Costume Designer, Production
9    Accountant, VFX Supervisor, Editor, Composer, and Actor,
10    subject to the limitations set forth under this
11    subparagraph. For an accredited Illinois production
12    spending of $25,000,000 or less, no more than 2
13    nonresident actors' wages shall qualify as an Illinois
14    labor expenditure. For an accredited production with
15    Illinois production spending of more than $25,000,000, no
16    more than 4 nonresident actor's wages shall qualify as
17    Illinois labor expenditures.
18        (10) Paid for services rendered in Illinois.
19    "Illinois production spending" means the expenses incurred
20by the applicant for an accredited production, including,
21without limitation, all of the following:
22        (1) expenses to purchase, from vendors within
23    Illinois, tangible personal property that is used in the
24    accredited production;
25        (2) expenses to acquire services, from vendors in
26    Illinois, for film production, editing, or processing; and

 

 

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1        (3) for a production commencing before July 1, 2022,
2    the compensation, not to exceed $100,000 for any one
3    employee, for contractual or salaried employees who are
4    Illinois residents performing services with respect to the
5    accredited production. For a production commencing on or
6    after July 1, 2022, the compensation, not to exceed
7    $500,000 for any one employee, for contractual or salaried
8    employees who are Illinois residents or nonresident
9    employees, subject to the limitations set forth under
10    Section 10 of this Act.
11    "Loan out company" means a personal service corporation or
12other entity that is under contract with the taxpayer to
13provide specified individual personnel, such as artists, crew,
14actors, producers, or directors for the performance of
15services used directly in a production. "Loan out company"
16does not include entities contracted with by the taxpayer to
17provide goods or ancillary contractor services such as
18catering, construction, trailers, equipment, or
19transportation.
20    "Qualified production facility" means stage facilities in
21the State in which television shows and films are or are
22intended to be regularly produced and that contain at least
23one sound stage of at least 15,000 square feet.
24    Rulemaking authority to implement Public Act 95-1006, if
25any, is conditioned on the rules being adopted in accordance
26with all provisions of the Illinois Administrative Procedure

 

 

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1Act and all rules and procedures of the Joint Committee on
2Administrative Rules; any purported rule not so adopted, for
3whatever reason, is unauthorized.
4(Source: P.A. 102-558, eff. 8-20-21.)
 
5    (35 ILCS 16/42)
6    Sec. 42. Sunset of credits. The application of credits
7awarded pursuant to this Act shall be limited by a reasonable
8and appropriate sunset date. A taxpayer shall not be awarded
9any new credits entitled to take a credit awarded pursuant to
10this Act for tax years beginning on or after January 1, 2027.
11(Source: P.A. 101-178, eff. 8-1-19.)
 
12    (35 ILCS 16/46 new)
13    Sec. 46. Illinois Production Workforce Development Fund.
14    (a) The Illinois Production Workforce Development Fund is
15created as a special fund in the State Treasury. Beginning
16July 1, 2022, amounts paid to the Department of Commerce and
17Economic Opportunity pursuant to Section 213 of the Illinois
18Income Tax Act shall be deposited into the Fund. The Fund shall
19be used exclusively to provide grants to community-based
20organizations, labor organizations, private and public
21universities, community colleges, and other organizations and
22institutions that may be deemed appropriate by the Department
23to administer workforce training programs that support efforts
24to recruit, hire, promote, retain, develop, and train a

 

 

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1diverse and inclusive workforce in the film industry.
2    (b) Pursuant to Section 213 of the Illinois Income Tax
3Act, the Fund shall receive deposits in amounts not to exceed
40.25% of the amount of each credit certificate issued that is
5not calculated on out-of-state wages and transferred or
6claimed on an Illinois tax return in the quarter such credit
7was transferred or claimed. In addition, such amount shall
8also include 2.5% of the credit amount calculated on wages
9paid to nonresidents that is transferred or claimed on an
10Illinois tax return in the quarter such credit was transferred
11or claimed.
12    (c) At the request of the Department, the State
13Comptroller and the State Treasurer may advance amounts to the
14Fund on an annual basis not to exceed $1,000,000 in any fiscal
15year. The fund from which the moneys are advanced shall be
16reimbursed in the same fiscal year for any such advance
17payments as described in this Section. The method of
18reimbursement shall be set forth in rules.
19    (d) Of the appropriated funds in a given fiscal year, 50%
20of the appropriated funds shall be reserved for organizations
21that meet one of the following criteria. The organization is:
22(1) a minority-owned business, as defined by the Business
23Enterprise for Minorities, Women, and Persons with
24Disabilities Act; (2) located in an underserved area, as
25defined by the Economic Development for a Growing Economy Tax
26Credit Act; or (3) on an annual basis, training a cohort of

 

 

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1program participants where at least 50% of the program
2participants are either a minority person, as defined by the
3Business Enterprise for Minorities, Women, and Persons with
4Disabilities Act, or reside in an underserved area, as defined
5by the Economic Development for a Growing Economy Tax Credit
6Act.
7    (e) The Illinois Production Workforce Development Fund
8shall be administered by the Department. The Department may
9adopt rules necessary to administer the provisions of this
10Section.
11    (f) Notwithstanding any other law to the contrary, the
12Illinois Production Workforce Development Fund is not subject
13to sweeps, administrative charge-backs, or any other fiscal or
14budgetary maneuver that would in any way transfer any amounts
15from the Illinois Production Workforce Development Fund.
16    (g) By June 30 of each fiscal year, the Department must
17submit to the General Assembly a report that includes the
18following information: (1) an identification of the
19organizations and institutions that received funding to
20administer workforce training programs during the fiscal year;
21(2) the number of total persons trained and the number of
22persons trained per workforce training program in the fiscal
23year; and (3) in the aggregate, per organization, the number
24of persons identified as a minority person or that reside in an
25underserved area that received training in the fiscal year.
 

 

 

SB0157 Enrolled- 35 -LRB102 10128 HLH 16591 b

1    Section 10-90. The State Finance Act is amended by adding
2Section 5.970 as follows:
 
3    (30 ILCS 105/5.970 new)
4    Sec. 5.970. The Illinois Production Workforce Development
5Fund.
 
6
ARTICLE 15. LIVE THEATER TAX CREDIT

 
7    Section 15-5. The Live Theater Production Tax Credit Act
8is amended by changing Section 10-20 as follows:
 
9    (35 ILCS 17/10-20)
10    Sec. 10-20. Tax credit award. Subject to the conditions
11set forth in this Act, an applicant is entitled to a tax credit
12award as approved by the Department for qualifying Illinois
13labor expenditures and Illinois production spending for each
14tax year in which the applicant is awarded an accredited
15theater production certificate issued by the Department. The
16amount of tax credits awarded pursuant to this Act shall not
17exceed $2,000,000 for State fiscal years ending on or before
18June 30, 2022 and ending on or after June 30, 2024. Due to the
19impact of the COVID-19 pandemic, for the State fiscal year
20ending on June 30, 2023, the amount of tax credits awarded
21pursuant to this Act shall not exceed $4,000,000. For the
22State fiscal year ending on June 30, 2023, credits awarded

 

 

SB0157 Enrolled- 36 -LRB102 10128 HLH 16591 b

1under this Act in excess of $2,000,000 must be awarded to
2applicants with Illinois production spending of not less than
3$2,500,000, as shown on the applicant's application for the
4credit. in any fiscal year. Credits shall be awarded on a
5first-come, first-served basis. Notwithstanding the foregoing,
6if the amount of credits applied for in any fiscal year exceeds
7the amount authorized to be awarded under this Section, the
8excess credit amount shall be awarded in the next fiscal year
9in which credits remain available for award and shall be
10treated as having been applied for on the first day of that
11fiscal year.
12(Source: P.A. 97-636, eff. 6-1-12.)
 
13
ARTICLE 20. BIODIESEL

 
14    Section 20-5. The Use Tax Act is amended by changing
15Sections 3-10 and 3-41 and by adding Sections 3-5.1 and 3-42.5
16as follows:
 
17    (35 ILCS 105/3-5.1 new)
18    Sec. 3-5.1. Biodiesel, renewable diesel, and biodiesel
19blends.
20    (a) On and after January 1, 2024 and on or before December
2131, 2030, the taxes imposed by this Act, the Service Use Tax
22Act, the Service Occupation Tax Act, or the Retailers'
23Occupation Tax Act apply to 100% of the proceeds of sales of

 

 

SB0157 Enrolled- 37 -LRB102 10128 HLH 16591 b

1(i) biodiesel blends with no less than 1% and no more than 10%
2of biodiesel and (ii) any diesel fuel containing no less than
31% and no more than 10% of renewable diesel.
4    (b) From January 1, 2024 through March 31, 2024, the taxes
5imposed by this Act, the Service Use Tax Act, the Service
6Occupation Tax Act, or the Retailers' Occupation Tax Act do
7not apply to the proceeds of sales of any diesel fuel
8containing more than 10% biodiesel or renewable diesel.
9    (c) From April 1, 2024 through November 30, 2024, the
10taxes imposed by this Act, the Service Use Tax Act, the Service
11Occupation Tax Act, or the Retailers' Occupation Tax Act do
12not apply to the proceeds of sales of any diesel fuel
13containing more than 13% biodiesel or renewable diesel.
14    (d) From December 1, 2024 through March 31, 2025, the
15taxes imposed by this Act, the Service Use Tax Act, the Service
16Occupation Tax Act, or the Retailers' Occupation Tax Act do
17not apply to the proceeds of sales of any diesel fuel
18containing more than 10% biodiesel or renewable diesel.
19    (e) From April 1, 2025 through November 30, 2025, the
20taxes imposed by this Act, the Service Use Tax Act, the Service
21Occupation Tax Act, or the Retailers' Occupation Tax Act do
22not apply to the proceeds of sales of any diesel fuel
23containing more than 16% biodiesel or renewable diesel.
24    (f) From December 1, 2025 through March 31, 2026, the
25taxes imposed by this Act, the Service Use Tax Act, the Service
26Occupation Tax Act, or the Retailers' Occupation Tax Act do

 

 

SB0157 Enrolled- 38 -LRB102 10128 HLH 16591 b

1not apply to the proceeds of sales of any diesel fuel
2containing more than 10% biodiesel or renewable diesel.
3    (g) On and after April 1, 2026 and on or before November
430, 2030, the taxes imposed by this Act, the Service Use Tax
5Act, the Service Occupation Tax Act, or the Retailers'
6Occupation Tax Act do not apply to the proceeds of sales of any
7diesel fuel containing more than 19% biodiesel or renewable
8diesel; except that, from December 1 of calendar years 2026,
92027, 2028, and 2029 through March 31 of the following
10calendar year, and from December 1, 2030 through December 31,
112030, the taxes imposed by this Act, the Service Use Tax Act,
12the Service Occupation Tax Act, or the Retailers' Occupation
13Tax Act do not apply to the proceeds of sales of any diesel
14fuel containing more than 10% biodiesel or renewable diesel.
15    (h) This Section is exempt from the provisions of Section
163-90 of this Act, Section 3-75 of the Service Use Tax Act,
17Section 3-55 of the Service Occupation Tax Act, and Section
182-70 of the Retailers' Occupation Tax Act.
 
19    (35 ILCS 105/3-10)
20    Sec. 3-10. Rate of tax. Unless otherwise provided in this
21Section, the tax imposed by this Act is at the rate of 6.25% of
22either the selling price or the fair market value, if any, of
23the tangible personal property. In all cases where property
24functionally used or consumed is the same as the property that
25was purchased at retail, then the tax is imposed on the selling

 

 

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1price of the property. In all cases where property
2functionally used or consumed is a by-product or waste product
3that has been refined, manufactured, or produced from property
4purchased at retail, then the tax is imposed on the lower of
5the fair market value, if any, of the specific property so used
6in this State or on the selling price of the property purchased
7at retail. For purposes of this Section "fair market value"
8means the price at which property would change hands between a
9willing buyer and a willing seller, neither being under any
10compulsion to buy or sell and both having reasonable knowledge
11of the relevant facts. The fair market value shall be
12established by Illinois sales by the taxpayer of the same
13property as that functionally used or consumed, or if there
14are no such sales by the taxpayer, then comparable sales or
15purchases of property of like kind and character in Illinois.
16    Beginning on July 1, 2000 and through December 31, 2000,
17with respect to motor fuel, as defined in Section 1.1 of the
18Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
19the Use Tax Act, the tax is imposed at the rate of 1.25%.
20    Beginning on August 6, 2010 through August 15, 2010, with
21respect to sales tax holiday items as defined in Section 3-6 of
22this Act, the tax is imposed at the rate of 1.25%.
23    With respect to gasohol, the tax imposed by this Act
24applies to (i) 70% of the proceeds of sales made on or after
25January 1, 1990, and before July 1, 2003, (ii) 80% of the
26proceeds of sales made on or after July 1, 2003 and on or

 

 

SB0157 Enrolled- 40 -LRB102 10128 HLH 16591 b

1before July 1, 2017, and (iii) 100% of the proceeds of sales
2made thereafter. If, at any time, however, the tax under this
3Act on sales of gasohol is imposed at the rate of 1.25%, then
4the tax imposed by this Act applies to 100% of the proceeds of
5sales of gasohol made during that time.
6    With respect to majority blended ethanol fuel, the tax
7imposed by this Act does not apply to the proceeds of sales
8made on or after July 1, 2003 and on or before December 31,
92023 but applies to 100% of the proceeds of sales made
10thereafter.
11    With respect to biodiesel blends with no less than 1% and
12no more than 10% biodiesel, the tax imposed by this Act applies
13to (i) 80% of the proceeds of sales made on or after July 1,
142003 and on or before December 31, 2018 and (ii) 100% of the
15proceeds of sales made after December 31, 2018 and before
16January 1, 2024. On and after January 1, 2024 and on or before
17December 31, 2030, the taxation of biodiesel, renewable
18diesel, and biodiesel blends shall be as provided in Section
193-5.1 thereafter. If, at any time, however, the tax under this
20Act on sales of biodiesel blends with no less than 1% and no
21more than 10% biodiesel is imposed at the rate of 1.25%, then
22the tax imposed by this Act applies to 100% of the proceeds of
23sales of biodiesel blends with no less than 1% and no more than
2410% biodiesel made during that time.
25    With respect to 100% biodiesel and biodiesel blends with
26more than 10% but no more than 99% biodiesel, the tax imposed

 

 

SB0157 Enrolled- 41 -LRB102 10128 HLH 16591 b

1by this Act does not apply to the proceeds of sales made on or
2after July 1, 2003 and on or before December 31, 2023 but
3applies to 100% of the proceeds of sales made thereafter. On
4and after January 1, 2024 and on or before December 31, 2030,
5the taxation of biodiesel, renewable diesel, and biodiesel
6blends shall be as provided in Section 3-5.1.
7    With respect to food for human consumption that is to be
8consumed off the premises where it is sold (other than
9alcoholic beverages, food consisting of or infused with adult
10use cannabis, soft drinks, and food that has been prepared for
11immediate consumption) and prescription and nonprescription
12medicines, drugs, medical appliances, products classified as
13Class III medical devices by the United States Food and Drug
14Administration that are used for cancer treatment pursuant to
15a prescription, as well as any accessories and components
16related to those devices, modifications to a motor vehicle for
17the purpose of rendering it usable by a person with a
18disability, and insulin, blood sugar testing materials,
19syringes, and needles used by human diabetics, the tax is
20imposed at the rate of 1%. For the purposes of this Section,
21until September 1, 2009: the term "soft drinks" means any
22complete, finished, ready-to-use, non-alcoholic drink, whether
23carbonated or not, including but not limited to soda water,
24cola, fruit juice, vegetable juice, carbonated water, and all
25other preparations commonly known as soft drinks of whatever
26kind or description that are contained in any closed or sealed

 

 

SB0157 Enrolled- 42 -LRB102 10128 HLH 16591 b

1bottle, can, carton, or container, regardless of size; but
2"soft drinks" does not include coffee, tea, non-carbonated
3water, infant formula, milk or milk products as defined in the
4Grade A Pasteurized Milk and Milk Products Act, or drinks
5containing 50% or more natural fruit or vegetable juice.
6    Notwithstanding any other provisions of this Act,
7beginning September 1, 2009, "soft drinks" means non-alcoholic
8beverages that contain natural or artificial sweeteners. "Soft
9drinks" do not include beverages that contain milk or milk
10products, soy, rice or similar milk substitutes, or greater
11than 50% of vegetable or fruit juice by volume.
12    Until August 1, 2009, and notwithstanding any other
13provisions of this Act, "food for human consumption that is to
14be consumed off the premises where it is sold" includes all
15food sold through a vending machine, except soft drinks and
16food products that are dispensed hot from a vending machine,
17regardless of the location of the vending machine. Beginning
18August 1, 2009, and notwithstanding any other provisions of
19this Act, "food for human consumption that is to be consumed
20off the premises where it is sold" includes all food sold
21through a vending machine, except soft drinks, candy, and food
22products that are dispensed hot from a vending machine,
23regardless of the location of the vending machine.
24    Notwithstanding any other provisions of this Act,
25beginning September 1, 2009, "food for human consumption that
26is to be consumed off the premises where it is sold" does not

 

 

SB0157 Enrolled- 43 -LRB102 10128 HLH 16591 b

1include candy. For purposes of this Section, "candy" means a
2preparation of sugar, honey, or other natural or artificial
3sweeteners in combination with chocolate, fruits, nuts or
4other ingredients or flavorings in the form of bars, drops, or
5pieces. "Candy" does not include any preparation that contains
6flour or requires refrigeration.
7    Notwithstanding any other provisions of this Act,
8beginning September 1, 2009, "nonprescription medicines and
9drugs" does not include grooming and hygiene products. For
10purposes of this Section, "grooming and hygiene products"
11includes, but is not limited to, soaps and cleaning solutions,
12shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
13lotions and screens, unless those products are available by
14prescription only, regardless of whether the products meet the
15definition of "over-the-counter-drugs". For the purposes of
16this paragraph, "over-the-counter-drug" means a drug for human
17use that contains a label that identifies the product as a drug
18as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
19label includes:
20        (A) A "Drug Facts" panel; or
21        (B) A statement of the "active ingredient(s)" with a
22    list of those ingredients contained in the compound,
23    substance or preparation.
24    Beginning on the effective date of this amendatory Act of
25the 98th General Assembly, "prescription and nonprescription
26medicines and drugs" includes medical cannabis purchased from

 

 

SB0157 Enrolled- 44 -LRB102 10128 HLH 16591 b

1a registered dispensing organization under the Compassionate
2Use of Medical Cannabis Program Act.
3    As used in this Section, "adult use cannabis" means
4cannabis subject to tax under the Cannabis Cultivation
5Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
6and does not include cannabis subject to tax under the
7Compassionate Use of Medical Cannabis Program Act.
8    If the property that is purchased at retail from a
9retailer is acquired outside Illinois and used outside
10Illinois before being brought to Illinois for use here and is
11taxable under this Act, the "selling price" on which the tax is
12computed shall be reduced by an amount that represents a
13reasonable allowance for depreciation for the period of prior
14out-of-state use.
15(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
16102-4, eff. 4-27-21.)
 
17    (35 ILCS 105/3-41)
18    Sec. 3-41. Biodiesel. "Biodiesel" means a renewable diesel
19fuel that is not a hydrocarbon fuel and that is derived from
20biomass that is intended for use in diesel engines.
21(Source: P.A. 93-17, eff. 6-11-03.)
 
22    (35 ILCS 105/3-42.5 new)
23    Sec. 3-42.5. Renewable diesel. "Renewable diesel" means a
24diesel fuel that is a hydrocarbon fuel derived from biomass

 

 

SB0157 Enrolled- 45 -LRB102 10128 HLH 16591 b

1meeting the requirements of the latest version of ASTM
2standards D975 or D396. Fuels that have been co-processed are
3not considered renewable diesel.
 
4    Section 20-10. The Service Use Tax Act is amended by
5changing Section 3-10 as follows:
 
6    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
7    Sec. 3-10. Rate of tax. Unless otherwise provided in this
8Section, the tax imposed by this Act is at the rate of 6.25% of
9the selling price of tangible personal property transferred as
10an incident to the sale of service, but, for the purpose of
11computing this tax, in no event shall the selling price be less
12than the cost price of the property to the serviceman.
13    Beginning on July 1, 2000 and through December 31, 2000,
14with respect to motor fuel, as defined in Section 1.1 of the
15Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
16the Use Tax Act, the tax is imposed at the rate of 1.25%.
17    With respect to gasohol, as defined in the Use Tax Act, the
18tax imposed by this Act applies to (i) 70% of the selling price
19of property transferred as an incident to the sale of service
20on or after January 1, 1990, and before July 1, 2003, (ii) 80%
21of the selling price of property transferred as an incident to
22the sale of service on or after July 1, 2003 and on or before
23July 1, 2017, and (iii) 100% of the selling price thereafter.
24If, at any time, however, the tax under this Act on sales of

 

 

SB0157 Enrolled- 46 -LRB102 10128 HLH 16591 b

1gasohol, as defined in the Use Tax Act, is imposed at the rate
2of 1.25%, then the tax imposed by this Act applies to 100% of
3the proceeds of sales of gasohol made during that time.
4    With respect to majority blended ethanol fuel, as defined
5in the Use Tax Act, the tax imposed by this Act does not apply
6to the selling price of property transferred as an incident to
7the sale of service on or after July 1, 2003 and on or before
8December 31, 2023 but applies to 100% of the selling price
9thereafter.
10    With respect to biodiesel blends, as defined in the Use
11Tax Act, with no less than 1% and no more than 10% biodiesel,
12the tax imposed by this Act applies to (i) 80% of the selling
13price of property transferred as an incident to the sale of
14service on or after July 1, 2003 and on or before December 31,
152018 and (ii) 100% of the proceeds of the selling price after
16December 31, 2018 and before January 1, 2024. On and after
17January 1, 2024 and on or before December 31, 2030, the
18taxation of biodiesel, renewable diesel, and biodiesel blends
19shall be as provided in Section 3-5.1 of the Use Tax
20Act thereafter. If, at any time, however, the tax under this
21Act on sales of biodiesel blends, as defined in the Use Tax
22Act, with no less than 1% and no more than 10% biodiesel is
23imposed at the rate of 1.25%, then the tax imposed by this Act
24applies to 100% of the proceeds of sales of biodiesel blends
25with no less than 1% and no more than 10% biodiesel made during
26that time.

 

 

SB0157 Enrolled- 47 -LRB102 10128 HLH 16591 b

1    With respect to 100% biodiesel, as defined in the Use Tax
2Act, and biodiesel blends, as defined in the Use Tax Act, with
3more than 10% but no more than 99% biodiesel, the tax imposed
4by this Act does not apply to the proceeds of the selling price
5of property transferred as an incident to the sale of service
6on or after July 1, 2003 and on or before December 31, 2023 but
7applies to 100% of the selling price thereafter. On and after
8January 1, 2024 and on or before December 31, 2030, the
9taxation of biodiesel, renewable diesel, and biodiesel blends
10shall be as provided in Section 3-5.1 of the Use Tax Act.
11    At the election of any registered serviceman made for each
12fiscal year, sales of service in which the aggregate annual
13cost price of tangible personal property transferred as an
14incident to the sales of service is less than 35%, or 75% in
15the case of servicemen transferring prescription drugs or
16servicemen engaged in graphic arts production, of the
17aggregate annual total gross receipts from all sales of
18service, the tax imposed by this Act shall be based on the
19serviceman's cost price of the tangible personal property
20transferred as an incident to the sale of those services.
21    The tax shall be imposed at the rate of 1% on food prepared
22for immediate consumption and transferred incident to a sale
23of service subject to this Act or the Service Occupation Tax
24Act by an entity licensed under the Hospital Licensing Act,
25the Nursing Home Care Act, the Assisted Living and Shared
26Housing Act, the ID/DD Community Care Act, the MC/DD Act, the

 

 

SB0157 Enrolled- 48 -LRB102 10128 HLH 16591 b

1Specialized Mental Health Rehabilitation Act of 2013, or the
2Child Care Act of 1969, or an entity that holds a permit issued
3pursuant to the Life Care Facilities Act. The tax shall also be
4imposed at the rate of 1% on food for human consumption that is
5to be consumed off the premises where it is sold (other than
6alcoholic beverages, food consisting of or infused with adult
7use cannabis, soft drinks, and food that has been prepared for
8immediate consumption and is not otherwise included in this
9paragraph) and prescription and nonprescription medicines,
10drugs, medical appliances, products classified as Class III
11medical devices by the United States Food and Drug
12Administration that are used for cancer treatment pursuant to
13a prescription, as well as any accessories and components
14related to those devices, modifications to a motor vehicle for
15the purpose of rendering it usable by a person with a
16disability, and insulin, blood sugar testing materials,
17syringes, and needles used by human diabetics. For the
18purposes of this Section, until September 1, 2009: the term
19"soft drinks" means any complete, finished, ready-to-use,
20non-alcoholic drink, whether carbonated or not, including but
21not limited to soda water, cola, fruit juice, vegetable juice,
22carbonated water, and all other preparations commonly known as
23soft drinks of whatever kind or description that are contained
24in any closed or sealed bottle, can, carton, or container,
25regardless of size; but "soft drinks" does not include coffee,
26tea, non-carbonated water, infant formula, milk or milk

 

 

SB0157 Enrolled- 49 -LRB102 10128 HLH 16591 b

1products as defined in the Grade A Pasteurized Milk and Milk
2Products Act, or drinks containing 50% or more natural fruit
3or vegetable juice.
4    Notwithstanding any other provisions of this Act,
5beginning September 1, 2009, "soft drinks" means non-alcoholic
6beverages that contain natural or artificial sweeteners. "Soft
7drinks" do not include beverages that contain milk or milk
8products, soy, rice or similar milk substitutes, or greater
9than 50% of vegetable or fruit juice by volume.
10    Until August 1, 2009, and notwithstanding any other
11provisions of this Act, "food for human consumption that is to
12be consumed off the premises where it is sold" includes all
13food sold through a vending machine, except soft drinks and
14food products that are dispensed hot from a vending machine,
15regardless of the location of the vending machine. Beginning
16August 1, 2009, and notwithstanding any other provisions of
17this Act, "food for human consumption that is to be consumed
18off the premises where it is sold" includes all food sold
19through a vending machine, except soft drinks, candy, and food
20products that are dispensed hot from a vending machine,
21regardless of the location of the vending machine.
22    Notwithstanding any other provisions of this Act,
23beginning September 1, 2009, "food for human consumption that
24is to be consumed off the premises where it is sold" does not
25include candy. For purposes of this Section, "candy" means a
26preparation of sugar, honey, or other natural or artificial

 

 

SB0157 Enrolled- 50 -LRB102 10128 HLH 16591 b

1sweeteners in combination with chocolate, fruits, nuts or
2other ingredients or flavorings in the form of bars, drops, or
3pieces. "Candy" does not include any preparation that contains
4flour or requires refrigeration.
5    Notwithstanding any other provisions of this Act,
6beginning September 1, 2009, "nonprescription medicines and
7drugs" does not include grooming and hygiene products. For
8purposes of this Section, "grooming and hygiene products"
9includes, but is not limited to, soaps and cleaning solutions,
10shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
11lotions and screens, unless those products are available by
12prescription only, regardless of whether the products meet the
13definition of "over-the-counter-drugs". For the purposes of
14this paragraph, "over-the-counter-drug" means a drug for human
15use that contains a label that identifies the product as a drug
16as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
17label includes:
18        (A) A "Drug Facts" panel; or
19        (B) A statement of the "active ingredient(s)" with a
20    list of those ingredients contained in the compound,
21    substance or preparation.
22    Beginning on January 1, 2014 (the effective date of Public
23Act 98-122), "prescription and nonprescription medicines and
24drugs" includes medical cannabis purchased from a registered
25dispensing organization under the Compassionate Use of Medical
26Cannabis Program Act.

 

 

SB0157 Enrolled- 51 -LRB102 10128 HLH 16591 b

1    As used in this Section, "adult use cannabis" means
2cannabis subject to tax under the Cannabis Cultivation
3Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
4and does not include cannabis subject to tax under the
5Compassionate Use of Medical Cannabis Program Act.
6    If the property that is acquired from a serviceman is
7acquired outside Illinois and used outside Illinois before
8being brought to Illinois for use here and is taxable under
9this Act, the "selling price" on which the tax is computed
10shall be reduced by an amount that represents a reasonable
11allowance for depreciation for the period of prior
12out-of-state use.
13(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
14102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
15    Section 20-15. The Service Occupation Tax Act is amended
16by changing Section 3-10 as follows:
 
17    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
18    Sec. 3-10. Rate of tax. Unless otherwise provided in this
19Section, the tax imposed by this Act is at the rate of 6.25% of
20the "selling price", as defined in Section 2 of the Service Use
21Tax Act, of the tangible personal property. For the purpose of
22computing this tax, in no event shall the "selling price" be
23less than the cost price to the serviceman of the tangible
24personal property transferred. The selling price of each item

 

 

SB0157 Enrolled- 52 -LRB102 10128 HLH 16591 b

1of tangible personal property transferred as an incident of a
2sale of service may be shown as a distinct and separate item on
3the serviceman's billing to the service customer. If the
4selling price is not so shown, the selling price of the
5tangible personal property is deemed to be 50% of the
6serviceman's entire billing to the service customer. When,
7however, a serviceman contracts to design, develop, and
8produce special order machinery or equipment, the tax imposed
9by this Act shall be based on the serviceman's cost price of
10the tangible personal property transferred incident to the
11completion of the contract.
12    Beginning on July 1, 2000 and through December 31, 2000,
13with respect to motor fuel, as defined in Section 1.1 of the
14Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
15the Use Tax Act, the tax is imposed at the rate of 1.25%.
16    With respect to gasohol, as defined in the Use Tax Act, the
17tax imposed by this Act shall apply to (i) 70% of the cost
18price of property transferred as an incident to the sale of
19service on or after January 1, 1990, and before July 1, 2003,
20(ii) 80% of the selling price of property transferred as an
21incident to the sale of service on or after July 1, 2003 and on
22or before July 1, 2017, and (iii) 100% of the cost price
23thereafter. If, at any time, however, the tax under this Act on
24sales of gasohol, as defined in the Use Tax Act, is imposed at
25the rate of 1.25%, then the tax imposed by this Act applies to
26100% of the proceeds of sales of gasohol made during that time.

 

 

SB0157 Enrolled- 53 -LRB102 10128 HLH 16591 b

1    With respect to majority blended ethanol fuel, as defined
2in the Use Tax Act, the tax imposed by this Act does not apply
3to the selling price of property transferred as an incident to
4the sale of service on or after July 1, 2003 and on or before
5December 31, 2023 but applies to 100% of the selling price
6thereafter.
7    With respect to biodiesel blends, as defined in the Use
8Tax Act, with no less than 1% and no more than 10% biodiesel,
9the tax imposed by this Act applies to (i) 80% of the selling
10price of property transferred as an incident to the sale of
11service on or after July 1, 2003 and on or before December 31,
122018 and (ii) 100% of the proceeds of the selling price after
13December 31, 2018 and before January 1, 2024. On and after
14January 1, 2024 and on or before December 31, 2030, the
15taxation of biodiesel, renewable diesel, and biodiesel blends
16shall be as provided in Section 3-5.1 of the Use Tax
17Act thereafter. If, at any time, however, the tax under this
18Act on sales of biodiesel blends, as defined in the Use Tax
19Act, with no less than 1% and no more than 10% biodiesel is
20imposed at the rate of 1.25%, then the tax imposed by this Act
21applies to 100% of the proceeds of sales of biodiesel blends
22with no less than 1% and no more than 10% biodiesel made during
23that time.
24    With respect to 100% biodiesel, as defined in the Use Tax
25Act, and biodiesel blends, as defined in the Use Tax Act, with
26more than 10% but no more than 99% biodiesel material, the tax

 

 

SB0157 Enrolled- 54 -LRB102 10128 HLH 16591 b

1imposed by this Act does not apply to the proceeds of the
2selling price of property transferred as an incident to the
3sale of service on or after July 1, 2003 and on or before
4December 31, 2023 but applies to 100% of the selling price
5thereafter. On and after January 1, 2024 and on or before
6December 31, 2030, the taxation of biodiesel, renewable
7diesel, and biodiesel blends shall be as provided in Section
83-5.1 of the Use Tax Act.
9    At the election of any registered serviceman made for each
10fiscal year, sales of service in which the aggregate annual
11cost price of tangible personal property transferred as an
12incident to the sales of service is less than 35%, or 75% in
13the case of servicemen transferring prescription drugs or
14servicemen engaged in graphic arts production, of the
15aggregate annual total gross receipts from all sales of
16service, the tax imposed by this Act shall be based on the
17serviceman's cost price of the tangible personal property
18transferred incident to the sale of those services.
19    The tax shall be imposed at the rate of 1% on food prepared
20for immediate consumption and transferred incident to a sale
21of service subject to this Act or the Service Occupation Tax
22Act by an entity licensed under the Hospital Licensing Act,
23the Nursing Home Care Act, the Assisted Living and Shared
24Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
25Specialized Mental Health Rehabilitation Act of 2013, or the
26Child Care Act of 1969, or an entity that holds a permit issued

 

 

SB0157 Enrolled- 55 -LRB102 10128 HLH 16591 b

1pursuant to the Life Care Facilities Act. The tax shall also be
2imposed at the rate of 1% on food for human consumption that is
3to be consumed off the premises where it is sold (other than
4alcoholic beverages, food consisting of or infused with adult
5use cannabis, soft drinks, and food that has been prepared for
6immediate consumption and is not otherwise included in this
7paragraph) and prescription and nonprescription medicines,
8drugs, medical appliances, products classified as Class III
9medical devices by the United States Food and Drug
10Administration that are used for cancer treatment pursuant to
11a prescription, as well as any accessories and components
12related to those devices, modifications to a motor vehicle for
13the purpose of rendering it usable by a person with a
14disability, and insulin, blood sugar testing materials,
15syringes, and needles used by human diabetics. For the
16purposes of this Section, until September 1, 2009: the term
17"soft drinks" means any complete, finished, ready-to-use,
18non-alcoholic drink, whether carbonated or not, including but
19not limited to soda water, cola, fruit juice, vegetable juice,
20carbonated water, and all other preparations commonly known as
21soft drinks of whatever kind or description that are contained
22in any closed or sealed can, carton, or container, regardless
23of size; but "soft drinks" does not include coffee, tea,
24non-carbonated water, infant formula, milk or milk products as
25defined in the Grade A Pasteurized Milk and Milk Products Act,
26or drinks containing 50% or more natural fruit or vegetable

 

 

SB0157 Enrolled- 56 -LRB102 10128 HLH 16591 b

1juice.
2    Notwithstanding any other provisions of this Act,
3beginning September 1, 2009, "soft drinks" means non-alcoholic
4beverages that contain natural or artificial sweeteners. "Soft
5drinks" do not include beverages that contain milk or milk
6products, soy, rice or similar milk substitutes, or greater
7than 50% of vegetable or fruit juice by volume.
8    Until August 1, 2009, and notwithstanding any other
9provisions of this Act, "food for human consumption that is to
10be consumed off the premises where it is sold" includes all
11food sold through a vending machine, except soft drinks and
12food products that are dispensed hot from a vending machine,
13regardless of the location of the vending machine. Beginning
14August 1, 2009, and notwithstanding any other provisions of
15this Act, "food for human consumption that is to be consumed
16off the premises where it is sold" includes all food sold
17through a vending machine, except soft drinks, candy, and food
18products that are dispensed hot from a vending machine,
19regardless of the location of the vending machine.
20    Notwithstanding any other provisions of this Act,
21beginning September 1, 2009, "food for human consumption that
22is to be consumed off the premises where it is sold" does not
23include candy. For purposes of this Section, "candy" means a
24preparation of sugar, honey, or other natural or artificial
25sweeteners in combination with chocolate, fruits, nuts or
26other ingredients or flavorings in the form of bars, drops, or

 

 

SB0157 Enrolled- 57 -LRB102 10128 HLH 16591 b

1pieces. "Candy" does not include any preparation that contains
2flour or requires refrigeration.
3    Notwithstanding any other provisions of this Act,
4beginning September 1, 2009, "nonprescription medicines and
5drugs" does not include grooming and hygiene products. For
6purposes of this Section, "grooming and hygiene products"
7includes, but is not limited to, soaps and cleaning solutions,
8shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
9lotions and screens, unless those products are available by
10prescription only, regardless of whether the products meet the
11definition of "over-the-counter-drugs". For the purposes of
12this paragraph, "over-the-counter-drug" means a drug for human
13use that contains a label that identifies the product as a drug
14as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
15label includes:
16        (A) A "Drug Facts" panel; or
17        (B) A statement of the "active ingredient(s)" with a
18    list of those ingredients contained in the compound,
19    substance or preparation.
20    Beginning on January 1, 2014 (the effective date of Public
21Act 98-122), "prescription and nonprescription medicines and
22drugs" includes medical cannabis purchased from a registered
23dispensing organization under the Compassionate Use of Medical
24Cannabis Program Act.
25    As used in this Section, "adult use cannabis" means
26cannabis subject to tax under the Cannabis Cultivation

 

 

SB0157 Enrolled- 58 -LRB102 10128 HLH 16591 b

1Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
2and does not include cannabis subject to tax under the
3Compassionate Use of Medical Cannabis Program Act.
4(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
5102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
6    Section 20-20. The Retailers' Occupation Tax Act is
7amended by changing Section 2-10 as follows:
 
8    (35 ILCS 120/2-10)
9    Sec. 2-10. Rate of tax. Unless otherwise provided in this
10Section, the tax imposed by this Act is at the rate of 6.25% of
11gross receipts from sales of tangible personal property made
12in the course of business.
13    Beginning on July 1, 2000 and through December 31, 2000,
14with respect to motor fuel, as defined in Section 1.1 of the
15Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
16the Use Tax Act, the tax is imposed at the rate of 1.25%.
17    Beginning on August 6, 2010 through August 15, 2010, with
18respect to sales tax holiday items as defined in Section 2-8 of
19this Act, the tax is imposed at the rate of 1.25%.
20    Within 14 days after the effective date of this amendatory
21Act of the 91st General Assembly, each retailer of motor fuel
22and gasohol shall cause the following notice to be posted in a
23prominently visible place on each retail dispensing device
24that is used to dispense motor fuel or gasohol in the State of

 

 

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1Illinois: "As of July 1, 2000, the State of Illinois has
2eliminated the State's share of sales tax on motor fuel and
3gasohol through December 31, 2000. The price on this pump
4should reflect the elimination of the tax." The notice shall
5be printed in bold print on a sign that is no smaller than 4
6inches by 8 inches. The sign shall be clearly visible to
7customers. Any retailer who fails to post or maintain a
8required sign through December 31, 2000 is guilty of a petty
9offense for which the fine shall be $500 per day per each
10retail premises where a violation occurs.
11    With respect to gasohol, as defined in the Use Tax Act, the
12tax imposed by this Act applies to (i) 70% of the proceeds of
13sales made on or after January 1, 1990, and before July 1,
142003, (ii) 80% of the proceeds of sales made on or after July
151, 2003 and on or before July 1, 2017, and (iii) 100% of the
16proceeds of sales made thereafter. If, at any time, however,
17the tax under this Act on sales of gasohol, as defined in the
18Use Tax Act, is imposed at the rate of 1.25%, then the tax
19imposed by this Act applies to 100% of the proceeds of sales of
20gasohol made during that time.
21    With respect to majority blended ethanol fuel, as defined
22in the Use Tax Act, the tax imposed by this Act does not apply
23to the proceeds of sales made on or after July 1, 2003 and on
24or before December 31, 2023 but applies to 100% of the proceeds
25of sales made thereafter.
26    With respect to biodiesel blends, as defined in the Use

 

 

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1Tax Act, with no less than 1% and no more than 10% biodiesel,
2the tax imposed by this Act applies to (i) 80% of the proceeds
3of sales made on or after July 1, 2003 and on or before
4December 31, 2018 and (ii) 100% of the proceeds of sales made
5after December 31, 2018 and before January 1, 2024. On and
6after January 1, 2024 and on or before December 31, 2030, the
7taxation of biodiesel, renewable diesel, and biodiesel blends
8shall be as provided in Section 3-5.1 of the Use Tax Act
9thereafter. If, at any time, however, the tax under this Act on
10sales of biodiesel blends, as defined in the Use Tax Act, with
11no less than 1% and no more than 10% biodiesel is imposed at
12the rate of 1.25%, then the tax imposed by this Act applies to
13100% of the proceeds of sales of biodiesel blends with no less
14than 1% and no more than 10% biodiesel made during that time.
15    With respect to 100% biodiesel, as defined in the Use Tax
16Act, and biodiesel blends, as defined in the Use Tax Act, with
17more than 10% but no more than 99% biodiesel, the tax imposed
18by this Act does not apply to the proceeds of sales made on or
19after July 1, 2003 and on or before December 31, 2023 but
20applies to 100% of the proceeds of sales made thereafter. On
21and after January 1, 2024 and on or before December 31, 2030,
22the taxation of biodiesel, renewable diesel, and biodiesel
23blends shall be as provided in Section 3-5.1 of the Use Tax
24Act.
25    With respect to food for human consumption that is to be
26consumed off the premises where it is sold (other than

 

 

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1alcoholic beverages, food consisting of or infused with adult
2use cannabis, soft drinks, and food that has been prepared for
3immediate consumption) and prescription and nonprescription
4medicines, drugs, medical appliances, products classified as
5Class III medical devices by the United States Food and Drug
6Administration that are used for cancer treatment pursuant to
7a prescription, as well as any accessories and components
8related to those devices, modifications to a motor vehicle for
9the purpose of rendering it usable by a person with a
10disability, and insulin, blood sugar testing materials,
11syringes, and needles used by human diabetics, the tax is
12imposed at the rate of 1%. For the purposes of this Section,
13until September 1, 2009: the term "soft drinks" means any
14complete, finished, ready-to-use, non-alcoholic drink, whether
15carbonated or not, including but not limited to soda water,
16cola, fruit juice, vegetable juice, carbonated water, and all
17other preparations commonly known as soft drinks of whatever
18kind or description that are contained in any closed or sealed
19bottle, can, carton, or container, regardless of size; but
20"soft drinks" does not include coffee, tea, non-carbonated
21water, infant formula, milk or milk products as defined in the
22Grade A Pasteurized Milk and Milk Products Act, or drinks
23containing 50% or more natural fruit or vegetable juice.
24    Notwithstanding any other provisions of this Act,
25beginning September 1, 2009, "soft drinks" means non-alcoholic
26beverages that contain natural or artificial sweeteners. "Soft

 

 

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1drinks" do not include beverages that contain milk or milk
2products, soy, rice or similar milk substitutes, or greater
3than 50% of vegetable or fruit juice by volume.
4    Until August 1, 2009, and notwithstanding any other
5provisions of this Act, "food for human consumption that is to
6be consumed off the premises where it is sold" includes all
7food sold through a vending machine, except soft drinks and
8food products that are dispensed hot from a vending machine,
9regardless of the location of the vending machine. Beginning
10August 1, 2009, and notwithstanding any other provisions of
11this Act, "food for human consumption that is to be consumed
12off the premises where it is sold" includes all food sold
13through a vending machine, except soft drinks, candy, and food
14products that are dispensed hot from a vending machine,
15regardless of the location of the vending machine.
16    Notwithstanding any other provisions of this Act,
17beginning September 1, 2009, "food for human consumption that
18is to be consumed off the premises where it is sold" does not
19include candy. For purposes of this Section, "candy" means a
20preparation of sugar, honey, or other natural or artificial
21sweeteners in combination with chocolate, fruits, nuts or
22other ingredients or flavorings in the form of bars, drops, or
23pieces. "Candy" does not include any preparation that contains
24flour or requires refrigeration.
25    Notwithstanding any other provisions of this Act,
26beginning September 1, 2009, "nonprescription medicines and

 

 

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1drugs" does not include grooming and hygiene products. For
2purposes of this Section, "grooming and hygiene products"
3includes, but is not limited to, soaps and cleaning solutions,
4shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
5lotions and screens, unless those products are available by
6prescription only, regardless of whether the products meet the
7definition of "over-the-counter-drugs". For the purposes of
8this paragraph, "over-the-counter-drug" means a drug for human
9use that contains a label that identifies the product as a drug
10as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
11label includes:
12        (A) A "Drug Facts" panel; or
13        (B) A statement of the "active ingredient(s)" with a
14    list of those ingredients contained in the compound,
15    substance or preparation.
16    Beginning on the effective date of this amendatory Act of
17the 98th General Assembly, "prescription and nonprescription
18medicines and drugs" includes medical cannabis purchased from
19a registered dispensing organization under the Compassionate
20Use of Medical Cannabis Program Act.
21    As used in this Section, "adult use cannabis" means
22cannabis subject to tax under the Cannabis Cultivation
23Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
24and does not include cannabis subject to tax under the
25Compassionate Use of Medical Cannabis Program Act.
26(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;

 

 

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1102-4, eff. 4-27-21.)
 
2    Section 20-25. The Motor Fuel Tax Law is amended by adding
3Section 3d as follows:
 
4    (35 ILCS 505/3d new)
5    Sec. 3d. Right to blend.
6    (a) A distributor who is properly licensed and permitted
7as a blender pursuant to this Act may blend petroleum-based
8diesel fuel with biodiesel and sell the blended or unblended
9product on any premises owned and operated by the distributor
10for the purpose of supporting or facilitating the retail sale
11of motor fuel.
12    (b) A refiner or supplier of petroleum-based diesel fuel
13or biodiesel shall not refuse to sell or transport to a
14distributor who is properly licensed and permitted as a
15blender pursuant to this Act any petroleum-based diesel fuel
16or biodiesel based on the distributor's or dealer's intent to
17use that product for blending.
 
18
ARTICLE 25. HOSPITALS

 
19    Section 25-5. The Illinois Income Tax Act is amended by
20changing Section 223 as follows:
 
21    (35 ILCS 5/223)

 

 

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1    Sec. 223. Hospital credit.
2    (a) For tax years ending on or after December 31, 2012 and
3ending on or before December 31, 2027 December 31, 2022, a
4taxpayer that is the owner of a hospital licensed under the
5Hospital Licensing Act, but not including an organization that
6is exempt from federal income taxes under the Internal Revenue
7Code, is entitled to a credit against the taxes imposed under
8subsections (a) and (b) of Section 201 of this Act in an amount
9equal to the lesser of the amount of real property taxes paid
10during the tax year on real property used for hospital
11purposes during the prior tax year or the cost of free or
12discounted services provided during the tax year pursuant to
13the hospital's charitable financial assistance policy,
14measured at cost.
15    (b) If the taxpayer is a partnership or Subchapter S
16corporation, the credit is allowed to the partners or
17shareholders in accordance with the determination of income
18and distributive share of income under Sections 702 and 704
19and Subchapter S of the Internal Revenue Code. A transfer of
20this credit may be made by the taxpayer earning the credit
21within one year after the credit is earned in accordance with
22rules adopted by the Department. The Department shall
23prescribe rules to enforce and administer provisions of this
24Section. If the amount of the credit exceeds the tax liability
25for the year, then the excess credit may be carried forward and
26applied to the tax liability of the 5 taxable years following

 

 

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1the excess credit year. The credit shall be applied to the
2earliest year for which there is a tax liability. If there are
3credits from more than one tax year that are available to
4offset a liability, the earlier credit shall be applied first.
5In no event shall a credit under this Section reduce the
6taxpayer's liability to less than zero.
7(Source: P.A. 100-587, eff. 6-4-18.)
 
8    Section 25-10. The Use Tax Act is amended by changing
9Section 3-8 as follows:
 
10    (35 ILCS 105/3-8)
11    Sec. 3-8. Hospital exemption.
12    (a) Tangible Until July 1, 2022, tangible personal
13property sold to or used by a hospital owner that owns one or
14more hospitals licensed under the Hospital Licensing Act or
15operated under the University of Illinois Hospital Act, or a
16hospital affiliate that is not already exempt under another
17provision of this Act and meets the criteria for an exemption
18under this Section, is exempt from taxation under this Act.
19    (b) A hospital owner or hospital affiliate satisfies the
20conditions for an exemption under this Section if the value of
21qualified services or activities listed in subsection (c) of
22this Section for the hospital year equals or exceeds the
23relevant hospital entity's estimated property tax liability,
24without regard to any property tax exemption granted under

 

 

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1Section 15-86 of the Property Tax Code, for the calendar year
2in which exemption or renewal of exemption is sought. For
3purposes of making the calculations required by this
4subsection (b), if the relevant hospital entity is a hospital
5owner that owns more than one hospital, the value of the
6services or activities listed in subsection (c) shall be
7calculated on the basis of only those services and activities
8relating to the hospital that includes the subject property,
9and the relevant hospital entity's estimated property tax
10liability shall be calculated only with respect to the
11properties comprising that hospital. In the case of a
12multi-state hospital system or hospital affiliate, the value
13of the services or activities listed in subsection (c) shall
14be calculated on the basis of only those services and
15activities that occur in Illinois and the relevant hospital
16entity's estimated property tax liability shall be calculated
17only with respect to its property located in Illinois.
18    (c) The following services and activities shall be
19considered for purposes of making the calculations required by
20subsection (b):
21        (1) Charity care. Free or discounted services provided
22    pursuant to the relevant hospital entity's financial
23    assistance policy, measured at cost, including discounts
24    provided under the Hospital Uninsured Patient Discount
25    Act.
26        (2) Health services to low-income and underserved

 

 

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1    individuals. Other unreimbursed costs of the relevant
2    hospital entity for providing without charge, paying for,
3    or subsidizing goods, activities, or services for the
4    purpose of addressing the health of low-income or
5    underserved individuals. Those activities or services may
6    include, but are not limited to: financial or in-kind
7    support to affiliated or unaffiliated hospitals, hospital
8    affiliates, community clinics, or programs that treat
9    low-income or underserved individuals; paying for or
10    subsidizing health care professionals who care for
11    low-income or underserved individuals; providing or
12    subsidizing outreach or educational services to low-income
13    or underserved individuals for disease management and
14    prevention; free or subsidized goods, supplies, or
15    services needed by low-income or underserved individuals
16    because of their medical condition; and prenatal or
17    childbirth outreach to low-income or underserved persons.
18        (3) Subsidy of State or local governments. Direct or
19    indirect financial or in-kind subsidies of State or local
20    governments by the relevant hospital entity that pay for
21    or subsidize activities or programs related to health care
22    for low-income or underserved individuals.
23        (4) Support for State health care programs for
24    low-income individuals. At the election of the hospital
25    applicant for each applicable year, either (A) 10% of
26    payments to the relevant hospital entity and any hospital

 

 

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1    affiliate designated by the relevant hospital entity
2    (provided that such hospital affiliate's operations
3    provide financial or operational support for or receive
4    financial or operational support from the relevant
5    hospital entity) under Medicaid or other means-tested
6    programs, including, but not limited to, General
7    Assistance, the Covering ALL KIDS Health Insurance Act,
8    and the State Children's Health Insurance Program or (B)
9    the amount of subsidy provided by the relevant hospital
10    entity and any hospital affiliate designated by the
11    relevant hospital entity (provided that such hospital
12    affiliate's operations provide financial or operational
13    support for or receive financial or operational support
14    from the relevant hospital entity) to State or local
15    government in treating Medicaid recipients and recipients
16    of means-tested programs, including but not limited to
17    General Assistance, the Covering ALL KIDS Health Insurance
18    Act, and the State Children's Health Insurance Program.
19    The amount of subsidy for purpose of this item (4) is
20    calculated in the same manner as unreimbursed costs are
21    calculated for Medicaid and other means-tested government
22    programs in the Schedule H of IRS Form 990 in effect on the
23    effective date of this amendatory Act of the 97th General
24    Assembly.
25        (5) Dual-eligible subsidy. The amount of subsidy
26    provided to government by treating dual-eligible

 

 

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1    Medicare/Medicaid patients. The amount of subsidy for
2    purposes of this item (5) is calculated by multiplying the
3    relevant hospital entity's unreimbursed costs for
4    Medicare, calculated in the same manner as determined in
5    the Schedule H of IRS Form 990 in effect on the effective
6    date of this amendatory Act of the 97th General Assembly,
7    by the relevant hospital entity's ratio of dual-eligible
8    patients to total Medicare patients.
9        (6) Relief of the burden of government related to
10    health care. Except to the extent otherwise taken into
11    account in this subsection, the portion of unreimbursed
12    costs of the relevant hospital entity attributable to
13    providing, paying for, or subsidizing goods, activities,
14    or services that relieve the burden of government related
15    to health care for low-income individuals. Such activities
16    or services shall include, but are not limited to,
17    providing emergency, trauma, burn, neonatal, psychiatric,
18    rehabilitation, or other special services; providing
19    medical education; and conducting medical research or
20    training of health care professionals. The portion of
21    those unreimbursed costs attributable to benefiting
22    low-income individuals shall be determined using the ratio
23    calculated by adding the relevant hospital entity's costs
24    attributable to charity care, Medicaid, other means-tested
25    government programs, Medicare patients with disabilities
26    under age 65, and dual-eligible Medicare/Medicaid patients

 

 

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1    and dividing that total by the relevant hospital entity's
2    total costs. Such costs for the numerator and denominator
3    shall be determined by multiplying gross charges by the
4    cost to charge ratio taken from the hospital's most
5    recently filed Medicare cost report (CMS 2252-10
6    Worksheet, Part I). In the case of emergency services, the
7    ratio shall be calculated using costs (gross charges
8    multiplied by the cost to charge ratio taken from the
9    hospital's most recently filed Medicare cost report (CMS
10    2252-10 Worksheet, Part I)) of patients treated in the
11    relevant hospital entity's emergency department.
12        (7) Any other activity by the relevant hospital entity
13    that the Department determines relieves the burden of
14    government or addresses the health of low-income or
15    underserved individuals.
16    (d) The hospital applicant shall include information in
17its exemption application establishing that it satisfies the
18requirements of subsection (b). For purposes of making the
19calculations required by subsection (b), the hospital
20applicant may for each year elect to use either (1) the value
21of the services or activities listed in subsection (e) for the
22hospital year or (2) the average value of those services or
23activities for the 3 fiscal years ending with the hospital
24year. If the relevant hospital entity has been in operation
25for less than 3 completed fiscal years, then the latter
26calculation, if elected, shall be performed on a pro rata

 

 

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1basis.
2    (e) For purposes of making the calculations required by
3this Section:
4        (1) particular services or activities eligible for
5    consideration under any of the paragraphs (1) through (7)
6    of subsection (c) may not be counted under more than one of
7    those paragraphs; and
8        (2) the amount of unreimbursed costs and the amount of
9    subsidy shall not be reduced by restricted or unrestricted
10    payments received by the relevant hospital entity as
11    contributions deductible under Section 170(a) of the
12    Internal Revenue Code.
13    (f) (Blank).
14    (g) Estimation of Exempt Property Tax Liability. The
15estimated property tax liability used for the determination in
16subsection (b) shall be calculated as follows:
17        (1) "Estimated property tax liability" means the
18    estimated dollar amount of property tax that would be
19    owed, with respect to the exempt portion of each of the
20    relevant hospital entity's properties that are already
21    fully or partially exempt, or for which an exemption in
22    whole or in part is currently being sought, and then
23    aggregated as applicable, as if the exempt portion of
24    those properties were subject to tax, calculated with
25    respect to each such property by multiplying:
26            (A) the lesser of (i) the actual assessed value,

 

 

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1        if any, of the portion of the property for which an
2        exemption is sought or (ii) an estimated assessed
3        value of the exempt portion of such property as
4        determined in item (2) of this subsection (g), by
5            (B) the applicable State equalization rate
6        (yielding the equalized assessed value), by
7            (C) the applicable tax rate.
8        (2) The estimated assessed value of the exempt portion
9    of the property equals the sum of (i) the estimated fair
10    market value of buildings on the property, as determined
11    in accordance with subparagraphs (A) and (B) of this item
12    (2), multiplied by the applicable assessment factor, and
13    (ii) the estimated assessed value of the land portion of
14    the property, as determined in accordance with
15    subparagraph (C).
16            (A) The "estimated fair market value of buildings
17        on the property" means the replacement value of any
18        exempt portion of buildings on the property, minus
19        depreciation, determined utilizing the cost
20        replacement method whereby the exempt square footage
21        of all such buildings is multiplied by the replacement
22        cost per square foot for Class A Average building
23        found in the most recent edition of the Marshall &
24        Swift Valuation Services Manual, adjusted by any
25        appropriate current cost and local multipliers.
26            (B) Depreciation, for purposes of calculating the

 

 

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1        estimated fair market value of buildings on the
2        property, is applied by utilizing a weighted mean life
3        for the buildings based on original construction and
4        assuming a 40-year life for hospital buildings and the
5        applicable life for other types of buildings as
6        specified in the American Hospital Association
7        publication "Estimated Useful Lives of Depreciable
8        Hospital Assets". In the case of hospital buildings,
9        the remaining life is divided by 40 and this ratio is
10        multiplied by the replacement cost of the buildings to
11        obtain an estimated fair market value of buildings. If
12        a hospital building is older than 35 years, a
13        remaining life of 5 years for residual value is
14        assumed; and if a building is less than 8 years old, a
15        remaining life of 32 years is assumed.
16            (C) The estimated assessed value of the land
17        portion of the property shall be determined by
18        multiplying (i) the per square foot average of the
19        assessed values of three parcels of land (not
20        including farm land, and excluding the assessed value
21        of the improvements thereon) reasonably comparable to
22        the property, by (ii) the number of square feet
23        comprising the exempt portion of the property's land
24        square footage.
25        (3) The assessment factor, State equalization rate,
26    and tax rate (including any special factors such as

 

 

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1    Enterprise Zones) used in calculating the estimated
2    property tax liability shall be for the most recent year
3    that is publicly available from the applicable chief
4    county assessment officer or officers at least 90 days
5    before the end of the hospital year.
6        (4) The method utilized to calculate estimated
7    property tax liability for purposes of this Section 15-86
8    shall not be utilized for the actual valuation,
9    assessment, or taxation of property pursuant to the
10    Property Tax Code.
11    (h) For the purpose of this Section, the following terms
12shall have the meanings set forth below:
13        (1) "Hospital" means any institution, place, building,
14    buildings on a campus, or other health care facility
15    located in Illinois that is licensed under the Hospital
16    Licensing Act and has a hospital owner.
17        (2) "Hospital owner" means a not-for-profit
18    corporation that is the titleholder of a hospital, or the
19    owner of the beneficial interest in an Illinois land trust
20    that is the titleholder of a hospital.
21        (3) "Hospital affiliate" means any corporation,
22    partnership, limited partnership, joint venture, limited
23    liability company, association or other organization,
24    other than a hospital owner, that directly or indirectly
25    controls, is controlled by, or is under common control
26    with one or more hospital owners and that supports, is

 

 

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1    supported by, or acts in furtherance of the exempt health
2    care purposes of at least one of those hospital owners'
3    hospitals.
4        (4) "Hospital system" means a hospital and one or more
5    other hospitals or hospital affiliates related by common
6    control or ownership.
7        (5) "Control" relating to hospital owners, hospital
8    affiliates, or hospital systems means possession, direct
9    or indirect, of the power to direct or cause the direction
10    of the management and policies of the entity, whether
11    through ownership of assets, membership interest, other
12    voting or governance rights, by contract or otherwise.
13        (6) "Hospital applicant" means a hospital owner or
14    hospital affiliate that files an application for an
15    exemption or renewal of exemption under this Section.
16        (7) "Relevant hospital entity" means (A) the hospital
17    owner, in the case of a hospital applicant that is a
18    hospital owner, and (B) at the election of a hospital
19    applicant that is a hospital affiliate, either (i) the
20    hospital affiliate or (ii) the hospital system to which
21    the hospital applicant belongs, including any hospitals or
22    hospital affiliates that are related by common control or
23    ownership.
24        (8) "Subject property" means property used for the
25    calculation under subsection (b) of this Section.
26        (9) "Hospital year" means the fiscal year of the

 

 

SB0157 Enrolled- 77 -LRB102 10128 HLH 16591 b

1    relevant hospital entity, or the fiscal year of one of the
2    hospital owners in the hospital system if the relevant
3    hospital entity is a hospital system with members with
4    different fiscal years, that ends in the year for which
5    the exemption is sought.
6    (i) It is the intent of the General Assembly that any
7exemptions taken, granted, or renewed under this Section prior
8to the effective date of this amendatory Act of the 100th
9General Assembly are hereby validated.
10    (j) It is the intent of the General Assembly that the
11exemption under this Section applies on a continuous basis. If
12this amendatory Act of the 102nd General Assembly takes effect
13after July 1, 2022, any exemptions taken, granted, or renewed
14under this Section on or after July 1, 2022 and prior to the
15effective date of this amendatory Act of the 102nd General
16Assembly are hereby validated.
17    (k) This Section is exempt from the provisions of Section
183-90.
19(Source: P.A. 99-143, eff. 7-27-15; 100-1181, eff. 3-8-19.)
 
20    Section 25-15. The Service Use Tax Act is amended by
21changing Section 3-8 as follows:
 
22    (35 ILCS 110/3-8)
23    Sec. 3-8. Hospital exemption.
24    (a) Tangible Until July 1, 2022, tangible personal

 

 

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1property sold to or used by a hospital owner that owns one or
2more hospitals licensed under the Hospital Licensing Act or
3operated under the University of Illinois Hospital Act, or a
4hospital affiliate that is not already exempt under another
5provision of this Act and meets the criteria for an exemption
6under this Section, is exempt from taxation under this Act.
7    (b) A hospital owner or hospital affiliate satisfies the
8conditions for an exemption under this Section if the value of
9qualified services or activities listed in subsection (c) of
10this Section for the hospital year equals or exceeds the
11relevant hospital entity's estimated property tax liability,
12without regard to any property tax exemption granted under
13Section 15-86 of the Property Tax Code, for the calendar year
14in which exemption or renewal of exemption is sought. For
15purposes of making the calculations required by this
16subsection (b), if the relevant hospital entity is a hospital
17owner that owns more than one hospital, the value of the
18services or activities listed in subsection (c) shall be
19calculated on the basis of only those services and activities
20relating to the hospital that includes the subject property,
21and the relevant hospital entity's estimated property tax
22liability shall be calculated only with respect to the
23properties comprising that hospital. In the case of a
24multi-state hospital system or hospital affiliate, the value
25of the services or activities listed in subsection (c) shall
26be calculated on the basis of only those services and

 

 

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1activities that occur in Illinois and the relevant hospital
2entity's estimated property tax liability shall be calculated
3only with respect to its property located in Illinois.
4    (c) The following services and activities shall be
5considered for purposes of making the calculations required by
6subsection (b):
7        (1) Charity care. Free or discounted services provided
8    pursuant to the relevant hospital entity's financial
9    assistance policy, measured at cost, including discounts
10    provided under the Hospital Uninsured Patient Discount
11    Act.
12        (2) Health services to low-income and underserved
13    individuals. Other unreimbursed costs of the relevant
14    hospital entity for providing without charge, paying for,
15    or subsidizing goods, activities, or services for the
16    purpose of addressing the health of low-income or
17    underserved individuals. Those activities or services may
18    include, but are not limited to: financial or in-kind
19    support to affiliated or unaffiliated hospitals, hospital
20    affiliates, community clinics, or programs that treat
21    low-income or underserved individuals; paying for or
22    subsidizing health care professionals who care for
23    low-income or underserved individuals; providing or
24    subsidizing outreach or educational services to low-income
25    or underserved individuals for disease management and
26    prevention; free or subsidized goods, supplies, or

 

 

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1    services needed by low-income or underserved individuals
2    because of their medical condition; and prenatal or
3    childbirth outreach to low-income or underserved persons.
4        (3) Subsidy of State or local governments. Direct or
5    indirect financial or in-kind subsidies of State or local
6    governments by the relevant hospital entity that pay for
7    or subsidize activities or programs related to health care
8    for low-income or underserved individuals.
9        (4) Support for State health care programs for
10    low-income individuals. At the election of the hospital
11    applicant for each applicable year, either (A) 10% of
12    payments to the relevant hospital entity and any hospital
13    affiliate designated by the relevant hospital entity
14    (provided that such hospital affiliate's operations
15    provide financial or operational support for or receive
16    financial or operational support from the relevant
17    hospital entity) under Medicaid or other means-tested
18    programs, including, but not limited to, General
19    Assistance, the Covering ALL KIDS Health Insurance Act,
20    and the State Children's Health Insurance Program or (B)
21    the amount of subsidy provided by the relevant hospital
22    entity and any hospital affiliate designated by the
23    relevant hospital entity (provided that such hospital
24    affiliate's operations provide financial or operational
25    support for or receive financial or operational support
26    from the relevant hospital entity) to State or local

 

 

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1    government in treating Medicaid recipients and recipients
2    of means-tested programs, including but not limited to
3    General Assistance, the Covering ALL KIDS Health Insurance
4    Act, and the State Children's Health Insurance Program.
5    The amount of subsidy for purposes of this item (4) is
6    calculated in the same manner as unreimbursed costs are
7    calculated for Medicaid and other means-tested government
8    programs in the Schedule H of IRS Form 990 in effect on the
9    effective date of this amendatory Act of the 97th General
10    Assembly.
11        (5) Dual-eligible subsidy. The amount of subsidy
12    provided to government by treating dual-eligible
13    Medicare/Medicaid patients. The amount of subsidy for
14    purposes of this item (5) is calculated by multiplying the
15    relevant hospital entity's unreimbursed costs for
16    Medicare, calculated in the same manner as determined in
17    the Schedule H of IRS Form 990 in effect on the effective
18    date of this amendatory Act of the 97th General Assembly,
19    by the relevant hospital entity's ratio of dual-eligible
20    patients to total Medicare patients.
21        (6) Relief of the burden of government related to
22    health care. Except to the extent otherwise taken into
23    account in this subsection, the portion of unreimbursed
24    costs of the relevant hospital entity attributable to
25    providing, paying for, or subsidizing goods, activities,
26    or services that relieve the burden of government related

 

 

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1    to health care for low-income individuals. Such activities
2    or services shall include, but are not limited to,
3    providing emergency, trauma, burn, neonatal, psychiatric,
4    rehabilitation, or other special services; providing
5    medical education; and conducting medical research or
6    training of health care professionals. The portion of
7    those unreimbursed costs attributable to benefiting
8    low-income individuals shall be determined using the ratio
9    calculated by adding the relevant hospital entity's costs
10    attributable to charity care, Medicaid, other means-tested
11    government programs, Medicare patients with disabilities
12    under age 65, and dual-eligible Medicare/Medicaid patients
13    and dividing that total by the relevant hospital entity's
14    total costs. Such costs for the numerator and denominator
15    shall be determined by multiplying gross charges by the
16    cost to charge ratio taken from the hospital's most
17    recently filed Medicare cost report (CMS 2252-10
18    Worksheet, Part I). In the case of emergency services, the
19    ratio shall be calculated using costs (gross charges
20    multiplied by the cost to charge ratio taken from the
21    hospital's most recently filed Medicare cost report (CMS
22    2252-10 Worksheet, Part I)) of patients treated in the
23    relevant hospital entity's emergency department.
24        (7) Any other activity by the relevant hospital entity
25    that the Department determines relieves the burden of
26    government or addresses the health of low-income or

 

 

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1    underserved individuals.
2    (d) The hospital applicant shall include information in
3its exemption application establishing that it satisfies the
4requirements of subsection (b). For purposes of making the
5calculations required by subsection (b), the hospital
6applicant may for each year elect to use either (1) the value
7of the services or activities listed in subsection (e) for the
8hospital year or (2) the average value of those services or
9activities for the 3 fiscal years ending with the hospital
10year. If the relevant hospital entity has been in operation
11for less than 3 completed fiscal years, then the latter
12calculation, if elected, shall be performed on a pro rata
13basis.
14    (e) For purposes of making the calculations required by
15this Section:
16        (1) particular services or activities eligible for
17    consideration under any of the paragraphs (1) through (7)
18    of subsection (c) may not be counted under more than one of
19    those paragraphs; and
20        (2) the amount of unreimbursed costs and the amount of
21    subsidy shall not be reduced by restricted or unrestricted
22    payments received by the relevant hospital entity as
23    contributions deductible under Section 170(a) of the
24    Internal Revenue Code.
25    (f) (Blank).
26    (g) Estimation of Exempt Property Tax Liability. The

 

 

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1estimated property tax liability used for the determination in
2subsection (b) shall be calculated as follows:
3        (1) "Estimated property tax liability" means the
4    estimated dollar amount of property tax that would be
5    owed, with respect to the exempt portion of each of the
6    relevant hospital entity's properties that are already
7    fully or partially exempt, or for which an exemption in
8    whole or in part is currently being sought, and then
9    aggregated as applicable, as if the exempt portion of
10    those properties were subject to tax, calculated with
11    respect to each such property by multiplying:
12            (A) the lesser of (i) the actual assessed value,
13        if any, of the portion of the property for which an
14        exemption is sought or (ii) an estimated assessed
15        value of the exempt portion of such property as
16        determined in item (2) of this subsection (g), by
17            (B) the applicable State equalization rate
18        (yielding the equalized assessed value), by
19            (C) the applicable tax rate.
20        (2) The estimated assessed value of the exempt portion
21    of the property equals the sum of (i) the estimated fair
22    market value of buildings on the property, as determined
23    in accordance with subparagraphs (A) and (B) of this item
24    (2), multiplied by the applicable assessment factor, and
25    (ii) the estimated assessed value of the land portion of
26    the property, as determined in accordance with

 

 

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1    subparagraph (C).
2            (A) The "estimated fair market value of buildings
3        on the property" means the replacement value of any
4        exempt portion of buildings on the property, minus
5        depreciation, determined utilizing the cost
6        replacement method whereby the exempt square footage
7        of all such buildings is multiplied by the replacement
8        cost per square foot for Class A Average building
9        found in the most recent edition of the Marshall &
10        Swift Valuation Services Manual, adjusted by any
11        appropriate current cost and local multipliers.
12            (B) Depreciation, for purposes of calculating the
13        estimated fair market value of buildings on the
14        property, is applied by utilizing a weighted mean life
15        for the buildings based on original construction and
16        assuming a 40-year life for hospital buildings and the
17        applicable life for other types of buildings as
18        specified in the American Hospital Association
19        publication "Estimated Useful Lives of Depreciable
20        Hospital Assets". In the case of hospital buildings,
21        the remaining life is divided by 40 and this ratio is
22        multiplied by the replacement cost of the buildings to
23        obtain an estimated fair market value of buildings. If
24        a hospital building is older than 35 years, a
25        remaining life of 5 years for residual value is
26        assumed; and if a building is less than 8 years old, a

 

 

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1        remaining life of 32 years is assumed.
2            (C) The estimated assessed value of the land
3        portion of the property shall be determined by
4        multiplying (i) the per square foot average of the
5        assessed values of three parcels of land (not
6        including farm land, and excluding the assessed value
7        of the improvements thereon) reasonably comparable to
8        the property, by (ii) the number of square feet
9        comprising the exempt portion of the property's land
10        square footage.
11        (3) The assessment factor, State equalization rate,
12    and tax rate (including any special factors such as
13    Enterprise Zones) used in calculating the estimated
14    property tax liability shall be for the most recent year
15    that is publicly available from the applicable chief
16    county assessment officer or officers at least 90 days
17    before the end of the hospital year.
18        (4) The method utilized to calculate estimated
19    property tax liability for purposes of this Section 15-86
20    shall not be utilized for the actual valuation,
21    assessment, or taxation of property pursuant to the
22    Property Tax Code.
23    (h) For the purpose of this Section, the following terms
24shall have the meanings set forth below:
25        (1) "Hospital" means any institution, place, building,
26    buildings on a campus, or other health care facility

 

 

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1    located in Illinois that is licensed under the Hospital
2    Licensing Act and has a hospital owner.
3        (2) "Hospital owner" means a not-for-profit
4    corporation that is the titleholder of a hospital, or the
5    owner of the beneficial interest in an Illinois land trust
6    that is the titleholder of a hospital.
7        (3) "Hospital affiliate" means any corporation,
8    partnership, limited partnership, joint venture, limited
9    liability company, association or other organization,
10    other than a hospital owner, that directly or indirectly
11    controls, is controlled by, or is under common control
12    with one or more hospital owners and that supports, is
13    supported by, or acts in furtherance of the exempt health
14    care purposes of at least one of those hospital owners'
15    hospitals.
16        (4) "Hospital system" means a hospital and one or more
17    other hospitals or hospital affiliates related by common
18    control or ownership.
19        (5) "Control" relating to hospital owners, hospital
20    affiliates, or hospital systems means possession, direct
21    or indirect, of the power to direct or cause the direction
22    of the management and policies of the entity, whether
23    through ownership of assets, membership interest, other
24    voting or governance rights, by contract or otherwise.
25        (6) "Hospital applicant" means a hospital owner or
26    hospital affiliate that files an application for an

 

 

SB0157 Enrolled- 88 -LRB102 10128 HLH 16591 b

1    exemption or renewal of exemption under this Section.
2        (7) "Relevant hospital entity" means (A) the hospital
3    owner, in the case of a hospital applicant that is a
4    hospital owner, and (B) at the election of a hospital
5    applicant that is a hospital affiliate, either (i) the
6    hospital affiliate or (ii) the hospital system to which
7    the hospital applicant belongs, including any hospitals or
8    hospital affiliates that are related by common control or
9    ownership.
10        (8) "Subject property" means property used for the
11    calculation under subsection (b) of this Section.
12        (9) "Hospital year" means the fiscal year of the
13    relevant hospital entity, or the fiscal year of one of the
14    hospital owners in the hospital system if the relevant
15    hospital entity is a hospital system with members with
16    different fiscal years, that ends in the year for which
17    the exemption is sought.
18    (i) It is the intent of the General Assembly that any
19exemptions taken, granted, or renewed under this Section prior
20to the effective date of this amendatory Act of the 100th
21General Assembly are hereby validated.
22    (j) It is the intent of the General Assembly that the
23exemption under this Section applies on a continuous basis. If
24this amendatory Act of the 102nd General Assembly takes effect
25after July 1, 2022, any exemptions taken, granted, or renewed
26under this Section on or after July 1, 2022 and prior to the

 

 

SB0157 Enrolled- 89 -LRB102 10128 HLH 16591 b

1effective date of this amendatory Act of the 102nd General
2Assembly are hereby validated.
3    (k) This Section is exempt from the provisions of Section
43-75.
5(Source: P.A. 99-143, eff. 7-27-15; 100-1181, eff. 3-8-19.)
 
6    Section 25-20. The Service Occupation Tax Act is amended
7by changing Section 3-8 as follows:
 
8    (35 ILCS 115/3-8)
9    Sec. 3-8. Hospital exemption.
10    (a) Tangible Until July 1, 2022, tangible personal
11property sold to or used by a hospital owner that owns one or
12more hospitals licensed under the Hospital Licensing Act or
13operated under the University of Illinois Hospital Act, or a
14hospital affiliate that is not already exempt under another
15provision of this Act and meets the criteria for an exemption
16under this Section, is exempt from taxation under this Act.
17    (b) A hospital owner or hospital affiliate satisfies the
18conditions for an exemption under this Section if the value of
19qualified services or activities listed in subsection (c) of
20this Section for the hospital year equals or exceeds the
21relevant hospital entity's estimated property tax liability,
22without regard to any property tax exemption granted under
23Section 15-86 of the Property Tax Code, for the calendar year
24in which exemption or renewal of exemption is sought. For

 

 

SB0157 Enrolled- 90 -LRB102 10128 HLH 16591 b

1purposes of making the calculations required by this
2subsection (b), if the relevant hospital entity is a hospital
3owner that owns more than one hospital, the value of the
4services or activities listed in subsection (c) shall be
5calculated on the basis of only those services and activities
6relating to the hospital that includes the subject property,
7and the relevant hospital entity's estimated property tax
8liability shall be calculated only with respect to the
9properties comprising that hospital. In the case of a
10multi-state hospital system or hospital affiliate, the value
11of the services or activities listed in subsection (c) shall
12be calculated on the basis of only those services and
13activities that occur in Illinois and the relevant hospital
14entity's estimated property tax liability shall be calculated
15only with respect to its property located in Illinois.
16    (c) The following services and activities shall be
17considered for purposes of making the calculations required by
18subsection (b):
19        (1) Charity care. Free or discounted services provided
20    pursuant to the relevant hospital entity's financial
21    assistance policy, measured at cost, including discounts
22    provided under the Hospital Uninsured Patient Discount
23    Act.
24        (2) Health services to low-income and underserved
25    individuals. Other unreimbursed costs of the relevant
26    hospital entity for providing without charge, paying for,

 

 

SB0157 Enrolled- 91 -LRB102 10128 HLH 16591 b

1    or subsidizing goods, activities, or services for the
2    purpose of addressing the health of low-income or
3    underserved individuals. Those activities or services may
4    include, but are not limited to: financial or in-kind
5    support to affiliated or unaffiliated hospitals, hospital
6    affiliates, community clinics, or programs that treat
7    low-income or underserved individuals; paying for or
8    subsidizing health care professionals who care for
9    low-income or underserved individuals; providing or
10    subsidizing outreach or educational services to low-income
11    or underserved individuals for disease management and
12    prevention; free or subsidized goods, supplies, or
13    services needed by low-income or underserved individuals
14    because of their medical condition; and prenatal or
15    childbirth outreach to low-income or underserved persons.
16        (3) Subsidy of State or local governments. Direct or
17    indirect financial or in-kind subsidies of State or local
18    governments by the relevant hospital entity that pay for
19    or subsidize activities or programs related to health care
20    for low-income or underserved individuals.
21        (4) Support for State health care programs for
22    low-income individuals. At the election of the hospital
23    applicant for each applicable year, either (A) 10% of
24    payments to the relevant hospital entity and any hospital
25    affiliate designated by the relevant hospital entity
26    (provided that such hospital affiliate's operations

 

 

SB0157 Enrolled- 92 -LRB102 10128 HLH 16591 b

1    provide financial or operational support for or receive
2    financial or operational support from the relevant
3    hospital entity) under Medicaid or other means-tested
4    programs, including, but not limited to, General
5    Assistance, the Covering ALL KIDS Health Insurance Act,
6    and the State Children's Health Insurance Program or (B)
7    the amount of subsidy provided by the relevant hospital
8    entity and any hospital affiliate designated by the
9    relevant hospital entity (provided that such hospital
10    affiliate's operations provide financial or operational
11    support for or receive financial or operational support
12    from the relevant hospital entity) to State or local
13    government in treating Medicaid recipients and recipients
14    of means-tested programs, including but not limited to
15    General Assistance, the Covering ALL KIDS Health Insurance
16    Act, and the State Children's Health Insurance Program.
17    The amount of subsidy for purposes of this item (4) is
18    calculated in the same manner as unreimbursed costs are
19    calculated for Medicaid and other means-tested government
20    programs in the Schedule H of IRS Form 990 in effect on the
21    effective date of this amendatory Act of the 97th General
22    Assembly.
23        (5) Dual-eligible subsidy. The amount of subsidy
24    provided to government by treating dual-eligible
25    Medicare/Medicaid patients. The amount of subsidy for
26    purposes of this item (5) is calculated by multiplying the

 

 

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1    relevant hospital entity's unreimbursed costs for
2    Medicare, calculated in the same manner as determined in
3    the Schedule H of IRS Form 990 in effect on the effective
4    date of this amendatory Act of the 97th General Assembly,
5    by the relevant hospital entity's ratio of dual-eligible
6    patients to total Medicare patients.
7        (6) Relief of the burden of government related to
8    health care. Except to the extent otherwise taken into
9    account in this subsection, the portion of unreimbursed
10    costs of the relevant hospital entity attributable to
11    providing, paying for, or subsidizing goods, activities,
12    or services that relieve the burden of government related
13    to health care for low-income individuals. Such activities
14    or services shall include, but are not limited to,
15    providing emergency, trauma, burn, neonatal, psychiatric,
16    rehabilitation, or other special services; providing
17    medical education; and conducting medical research or
18    training of health care professionals. The portion of
19    those unreimbursed costs attributable to benefiting
20    low-income individuals shall be determined using the ratio
21    calculated by adding the relevant hospital entity's costs
22    attributable to charity care, Medicaid, other means-tested
23    government programs, Medicare patients with disabilities
24    under age 65, and dual-eligible Medicare/Medicaid patients
25    and dividing that total by the relevant hospital entity's
26    total costs. Such costs for the numerator and denominator

 

 

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1    shall be determined by multiplying gross charges by the
2    cost to charge ratio taken from the hospital's most
3    recently filed Medicare cost report (CMS 2252-10
4    Worksheet, Part I). In the case of emergency services, the
5    ratio shall be calculated using costs (gross charges
6    multiplied by the cost to charge ratio taken from the
7    hospital's most recently filed Medicare cost report (CMS
8    2252-10 Worksheet, Part I)) of patients treated in the
9    relevant hospital entity's emergency department.
10        (7) Any other activity by the relevant hospital entity
11    that the Department determines relieves the burden of
12    government or addresses the health of low-income or
13    underserved individuals.
14    (d) The hospital applicant shall include information in
15its exemption application establishing that it satisfies the
16requirements of subsection (b). For purposes of making the
17calculations required by subsection (b), the hospital
18applicant may for each year elect to use either (1) the value
19of the services or activities listed in subsection (e) for the
20hospital year or (2) the average value of those services or
21activities for the 3 fiscal years ending with the hospital
22year. If the relevant hospital entity has been in operation
23for less than 3 completed fiscal years, then the latter
24calculation, if elected, shall be performed on a pro rata
25basis.
26    (e) For purposes of making the calculations required by

 

 

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1this Section:
2        (1) particular services or activities eligible for
3    consideration under any of the paragraphs (1) through (7)
4    of subsection (c) may not be counted under more than one of
5    those paragraphs; and
6        (2) the amount of unreimbursed costs and the amount of
7    subsidy shall not be reduced by restricted or unrestricted
8    payments received by the relevant hospital entity as
9    contributions deductible under Section 170(a) of the
10    Internal Revenue Code.
11    (f) (Blank).
12    (g) Estimation of Exempt Property Tax Liability. The
13estimated property tax liability used for the determination in
14subsection (b) shall be calculated as follows:
15        (1) "Estimated property tax liability" means the
16    estimated dollar amount of property tax that would be
17    owed, with respect to the exempt portion of each of the
18    relevant hospital entity's properties that are already
19    fully or partially exempt, or for which an exemption in
20    whole or in part is currently being sought, and then
21    aggregated as applicable, as if the exempt portion of
22    those properties were subject to tax, calculated with
23    respect to each such property by multiplying:
24            (A) the lesser of (i) the actual assessed value,
25        if any, of the portion of the property for which an
26        exemption is sought or (ii) an estimated assessed

 

 

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1        value of the exempt portion of such property as
2        determined in item (2) of this subsection (g), by
3            (B) the applicable State equalization rate
4        (yielding the equalized assessed value), by
5            (C) the applicable tax rate.
6        (2) The estimated assessed value of the exempt portion
7    of the property equals the sum of (i) the estimated fair
8    market value of buildings on the property, as determined
9    in accordance with subparagraphs (A) and (B) of this item
10    (2), multiplied by the applicable assessment factor, and
11    (ii) the estimated assessed value of the land portion of
12    the property, as determined in accordance with
13    subparagraph (C).
14            (A) The "estimated fair market value of buildings
15        on the property" means the replacement value of any
16        exempt portion of buildings on the property, minus
17        depreciation, determined utilizing the cost
18        replacement method whereby the exempt square footage
19        of all such buildings is multiplied by the replacement
20        cost per square foot for Class A Average building
21        found in the most recent edition of the Marshall &
22        Swift Valuation Services Manual, adjusted by any
23        appropriate current cost and local multipliers.
24            (B) Depreciation, for purposes of calculating the
25        estimated fair market value of buildings on the
26        property, is applied by utilizing a weighted mean life

 

 

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1        for the buildings based on original construction and
2        assuming a 40-year life for hospital buildings and the
3        applicable life for other types of buildings as
4        specified in the American Hospital Association
5        publication "Estimated Useful Lives of Depreciable
6        Hospital Assets". In the case of hospital buildings,
7        the remaining life is divided by 40 and this ratio is
8        multiplied by the replacement cost of the buildings to
9        obtain an estimated fair market value of buildings. If
10        a hospital building is older than 35 years, a
11        remaining life of 5 years for residual value is
12        assumed; and if a building is less than 8 years old, a
13        remaining life of 32 years is assumed.
14            (C) The estimated assessed value of the land
15        portion of the property shall be determined by
16        multiplying (i) the per square foot average of the
17        assessed values of three parcels of land (not
18        including farm land, and excluding the assessed value
19        of the improvements thereon) reasonably comparable to
20        the property, by (ii) the number of square feet
21        comprising the exempt portion of the property's land
22        square footage.
23        (3) The assessment factor, State equalization rate,
24    and tax rate (including any special factors such as
25    Enterprise Zones) used in calculating the estimated
26    property tax liability shall be for the most recent year

 

 

SB0157 Enrolled- 98 -LRB102 10128 HLH 16591 b

1    that is publicly available from the applicable chief
2    county assessment officer or officers at least 90 days
3    before the end of the hospital year.
4        (4) The method utilized to calculate estimated
5    property tax liability for purposes of this Section 15-86
6    shall not be utilized for the actual valuation,
7    assessment, or taxation of property pursuant to the
8    Property Tax Code.
9    (h) For the purpose of this Section, the following terms
10shall have the meanings set forth below:
11        (1) "Hospital" means any institution, place, building,
12    buildings on a campus, or other health care facility
13    located in Illinois that is licensed under the Hospital
14    Licensing Act and has a hospital owner.
15        (2) "Hospital owner" means a not-for-profit
16    corporation that is the titleholder of a hospital, or the
17    owner of the beneficial interest in an Illinois land trust
18    that is the titleholder of a hospital.
19        (3) "Hospital affiliate" means any corporation,
20    partnership, limited partnership, joint venture, limited
21    liability company, association or other organization,
22    other than a hospital owner, that directly or indirectly
23    controls, is controlled by, or is under common control
24    with one or more hospital owners and that supports, is
25    supported by, or acts in furtherance of the exempt health
26    care purposes of at least one of those hospital owners'

 

 

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1    hospitals.
2        (4) "Hospital system" means a hospital and one or more
3    other hospitals or hospital affiliates related by common
4    control or ownership.
5        (5) "Control" relating to hospital owners, hospital
6    affiliates, or hospital systems means possession, direct
7    or indirect, of the power to direct or cause the direction
8    of the management and policies of the entity, whether
9    through ownership of assets, membership interest, other
10    voting or governance rights, by contract or otherwise.
11        (6) "Hospital applicant" means a hospital owner or
12    hospital affiliate that files an application for an
13    exemption or renewal of exemption under this Section.
14        (7) "Relevant hospital entity" means (A) the hospital
15    owner, in the case of a hospital applicant that is a
16    hospital owner, and (B) at the election of a hospital
17    applicant that is a hospital affiliate, either (i) the
18    hospital affiliate or (ii) the hospital system to which
19    the hospital applicant belongs, including any hospitals or
20    hospital affiliates that are related by common control or
21    ownership.
22        (8) "Subject property" means property used for the
23    calculation under subsection (b) of this Section.
24        (9) "Hospital year" means the fiscal year of the
25    relevant hospital entity, or the fiscal year of one of the
26    hospital owners in the hospital system if the relevant

 

 

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1    hospital entity is a hospital system with members with
2    different fiscal years, that ends in the year for which
3    the exemption is sought.
4    (i) It is the intent of the General Assembly that any
5exemptions taken, granted, or renewed under this Section prior
6to the effective date of this amendatory Act of the 100th
7General Assembly are hereby validated.
8    (j) It is the intent of the General Assembly that the
9exemption under this Section applies on a continuous basis. If
10this amendatory Act of the 102nd General Assembly takes effect
11after July 1, 2022, any exemptions taken, granted, or renewed
12under this Section on or after July 1, 2022 and prior to the
13effective date of this amendatory Act of the 102nd General
14Assembly are hereby validated.
15    (k) This Section is exempt from the provisions of Section
163-55.
17(Source: P.A. 99-143, eff. 7-27-15; 100-1181, eff. 3-8-19.)
 
18    Section 25-25. The Retailers' Occupation Tax Act is
19amended by changing Section 2-9 as follows:
 
20    (35 ILCS 120/2-9)
21    Sec. 2-9. Hospital exemption.
22    (a) Tangible Until July 1, 2022, tangible personal
23property sold to or used by a hospital owner that owns one or
24more hospitals licensed under the Hospital Licensing Act or

 

 

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1operated under the University of Illinois Hospital Act, or a
2hospital affiliate that is not already exempt under another
3provision of this Act and meets the criteria for an exemption
4under this Section, is exempt from taxation under this Act.
5    (b) A hospital owner or hospital affiliate satisfies the
6conditions for an exemption under this Section if the value of
7qualified services or activities listed in subsection (c) of
8this Section for the hospital year equals or exceeds the
9relevant hospital entity's estimated property tax liability,
10without regard to any property tax exemption granted under
11Section 15-86 of the Property Tax Code, for the calendar year
12in which exemption or renewal of exemption is sought. For
13purposes of making the calculations required by this
14subsection (b), if the relevant hospital entity is a hospital
15owner that owns more than one hospital, the value of the
16services or activities listed in subsection (c) shall be
17calculated on the basis of only those services and activities
18relating to the hospital that includes the subject property,
19and the relevant hospital entity's estimated property tax
20liability shall be calculated only with respect to the
21properties comprising that hospital. In the case of a
22multi-state hospital system or hospital affiliate, the value
23of the services or activities listed in subsection (c) shall
24be calculated on the basis of only those services and
25activities that occur in Illinois and the relevant hospital
26entity's estimated property tax liability shall be calculated

 

 

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1only with respect to its property located in Illinois.
2    (c) The following services and activities shall be
3considered for purposes of making the calculations required by
4subsection (b):
5        (1) Charity care. Free or discounted services provided
6    pursuant to the relevant hospital entity's financial
7    assistance policy, measured at cost, including discounts
8    provided under the Hospital Uninsured Patient Discount
9    Act.
10        (2) Health services to low-income and underserved
11    individuals. Other unreimbursed costs of the relevant
12    hospital entity for providing without charge, paying for,
13    or subsidizing goods, activities, or services for the
14    purpose of addressing the health of low-income or
15    underserved individuals. Those activities or services may
16    include, but are not limited to: financial or in-kind
17    support to affiliated or unaffiliated hospitals, hospital
18    affiliates, community clinics, or programs that treat
19    low-income or underserved individuals; paying for or
20    subsidizing health care professionals who care for
21    low-income or underserved individuals; providing or
22    subsidizing outreach or educational services to low-income
23    or underserved individuals for disease management and
24    prevention; free or subsidized goods, supplies, or
25    services needed by low-income or underserved individuals
26    because of their medical condition; and prenatal or

 

 

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1    childbirth outreach to low-income or underserved persons.
2        (3) Subsidy of State or local governments. Direct or
3    indirect financial or in-kind subsidies of State or local
4    governments by the relevant hospital entity that pay for
5    or subsidize activities or programs related to health care
6    for low-income or underserved individuals.
7        (4) Support for State health care programs for
8    low-income individuals. At the election of the hospital
9    applicant for each applicable year, either (A) 10% of
10    payments to the relevant hospital entity and any hospital
11    affiliate designated by the relevant hospital entity
12    (provided that such hospital affiliate's operations
13    provide financial or operational support for or receive
14    financial or operational support from the relevant
15    hospital entity) under Medicaid or other means-tested
16    programs, including, but not limited to, General
17    Assistance, the Covering ALL KIDS Health Insurance Act,
18    and the State Children's Health Insurance Program or (B)
19    the amount of subsidy provided by the relevant hospital
20    entity and any hospital affiliate designated by the
21    relevant hospital entity (provided that such hospital
22    affiliate's operations provide financial or operational
23    support for or receive financial or operational support
24    from the relevant hospital entity) to State or local
25    government in treating Medicaid recipients and recipients
26    of means-tested programs, including but not limited to

 

 

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1    General Assistance, the Covering ALL KIDS Health Insurance
2    Act, and the State Children's Health Insurance Program.
3    The amount of subsidy for purposes of this item (4) is
4    calculated in the same manner as unreimbursed costs are
5    calculated for Medicaid and other means-tested government
6    programs in the Schedule H of IRS Form 990 in effect on the
7    effective date of this amendatory Act of the 97th General
8    Assembly.
9        (5) Dual-eligible subsidy. The amount of subsidy
10    provided to government by treating dual-eligible
11    Medicare/Medicaid patients. The amount of subsidy for
12    purposes of this item (5) is calculated by multiplying the
13    relevant hospital entity's unreimbursed costs for
14    Medicare, calculated in the same manner as determined in
15    the Schedule H of IRS Form 990 in effect on the effective
16    date of this amendatory Act of the 97th General Assembly,
17    by the relevant hospital entity's ratio of dual-eligible
18    patients to total Medicare patients.
19        (6) Relief of the burden of government related to
20    health care. Except to the extent otherwise taken into
21    account in this subsection, the portion of unreimbursed
22    costs of the relevant hospital entity attributable to
23    providing, paying for, or subsidizing goods, activities,
24    or services that relieve the burden of government related
25    to health care for low-income individuals. Such activities
26    or services shall include, but are not limited to,

 

 

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1    providing emergency, trauma, burn, neonatal, psychiatric,
2    rehabilitation, or other special services; providing
3    medical education; and conducting medical research or
4    training of health care professionals. The portion of
5    those unreimbursed costs attributable to benefiting
6    low-income individuals shall be determined using the ratio
7    calculated by adding the relevant hospital entity's costs
8    attributable to charity care, Medicaid, other means-tested
9    government programs, Medicare patients with disabilities
10    under age 65, and dual-eligible Medicare/Medicaid patients
11    and dividing that total by the relevant hospital entity's
12    total costs. Such costs for the numerator and denominator
13    shall be determined by multiplying gross charges by the
14    cost to charge ratio taken from the hospital's most
15    recently filed Medicare cost report (CMS 2252-10
16    Worksheet, Part I). In the case of emergency services, the
17    ratio shall be calculated using costs (gross charges
18    multiplied by the cost to charge ratio taken from the
19    hospital's most recently filed Medicare cost report (CMS
20    2252-10 Worksheet, Part I)) of patients treated in the
21    relevant hospital entity's emergency department.
22        (7) Any other activity by the relevant hospital entity
23    that the Department determines relieves the burden of
24    government or addresses the health of low-income or
25    underserved individuals.
26    (d) The hospital applicant shall include information in

 

 

SB0157 Enrolled- 106 -LRB102 10128 HLH 16591 b

1its exemption application establishing that it satisfies the
2requirements of subsection (b). For purposes of making the
3calculations required by subsection (b), the hospital
4applicant may for each year elect to use either (1) the value
5of the services or activities listed in subsection (e) for the
6hospital year or (2) the average value of those services or
7activities for the 3 fiscal years ending with the hospital
8year. If the relevant hospital entity has been in operation
9for less than 3 completed fiscal years, then the latter
10calculation, if elected, shall be performed on a pro rata
11basis.
12    (e) For purposes of making the calculations required by
13this Section:
14        (1) particular services or activities eligible for
15    consideration under any of the paragraphs (1) through (7)
16    of subsection (c) may not be counted under more than one of
17    those paragraphs; and
18        (2) the amount of unreimbursed costs and the amount of
19    subsidy shall not be reduced by restricted or unrestricted
20    payments received by the relevant hospital entity as
21    contributions deductible under Section 170(a) of the
22    Internal Revenue Code.
23    (f) (Blank).
24    (g) Estimation of Exempt Property Tax Liability. The
25estimated property tax liability used for the determination in
26subsection (b) shall be calculated as follows:

 

 

SB0157 Enrolled- 107 -LRB102 10128 HLH 16591 b

1        (1) "Estimated property tax liability" means the
2    estimated dollar amount of property tax that would be
3    owed, with respect to the exempt portion of each of the
4    relevant hospital entity's properties that are already
5    fully or partially exempt, or for which an exemption in
6    whole or in part is currently being sought, and then
7    aggregated as applicable, as if the exempt portion of
8    those properties were subject to tax, calculated with
9    respect to each such property by multiplying:
10            (A) the lesser of (i) the actual assessed value,
11        if any, of the portion of the property for which an
12        exemption is sought or (ii) an estimated assessed
13        value of the exempt portion of such property as
14        determined in item (2) of this subsection (g), by
15            (B) the applicable State equalization rate
16        (yielding the equalized assessed value), by
17            (C) the applicable tax rate.
18        (2) The estimated assessed value of the exempt portion
19    of the property equals the sum of (i) the estimated fair
20    market value of buildings on the property, as determined
21    in accordance with subparagraphs (A) and (B) of this item
22    (2), multiplied by the applicable assessment factor, and
23    (ii) the estimated assessed value of the land portion of
24    the property, as determined in accordance with
25    subparagraph (C).
26            (A) The "estimated fair market value of buildings

 

 

SB0157 Enrolled- 108 -LRB102 10128 HLH 16591 b

1        on the property" means the replacement value of any
2        exempt portion of buildings on the property, minus
3        depreciation, determined utilizing the cost
4        replacement method whereby the exempt square footage
5        of all such buildings is multiplied by the replacement
6        cost per square foot for Class A Average building
7        found in the most recent edition of the Marshall &
8        Swift Valuation Services Manual, adjusted by any
9        appropriate current cost and local multipliers.
10            (B) Depreciation, for purposes of calculating the
11        estimated fair market value of buildings on the
12        property, is applied by utilizing a weighted mean life
13        for the buildings based on original construction and
14        assuming a 40-year life for hospital buildings and the
15        applicable life for other types of buildings as
16        specified in the American Hospital Association
17        publication "Estimated Useful Lives of Depreciable
18        Hospital Assets". In the case of hospital buildings,
19        the remaining life is divided by 40 and this ratio is
20        multiplied by the replacement cost of the buildings to
21        obtain an estimated fair market value of buildings. If
22        a hospital building is older than 35 years, a
23        remaining life of 5 years for residual value is
24        assumed; and if a building is less than 8 years old, a
25        remaining life of 32 years is assumed.
26            (C) The estimated assessed value of the land

 

 

SB0157 Enrolled- 109 -LRB102 10128 HLH 16591 b

1        portion of the property shall be determined by
2        multiplying (i) the per square foot average of the
3        assessed values of three parcels of land (not
4        including farm land, and excluding the assessed value
5        of the improvements thereon) reasonably comparable to
6        the property, by (ii) the number of square feet
7        comprising the exempt portion of the property's land
8        square footage.
9        (3) The assessment factor, State equalization rate,
10    and tax rate (including any special factors such as
11    Enterprise Zones) used in calculating the estimated
12    property tax liability shall be for the most recent year
13    that is publicly available from the applicable chief
14    county assessment officer or officers at least 90 days
15    before the end of the hospital year.
16        (4) The method utilized to calculate estimated
17    property tax liability for purposes of this Section 15-86
18    shall not be utilized for the actual valuation,
19    assessment, or taxation of property pursuant to the
20    Property Tax Code.
21    (h) For the purpose of this Section, the following terms
22shall have the meanings set forth below:
23        (1) "Hospital" means any institution, place, building,
24    buildings on a campus, or other health care facility
25    located in Illinois that is licensed under the Hospital
26    Licensing Act and has a hospital owner.

 

 

SB0157 Enrolled- 110 -LRB102 10128 HLH 16591 b

1        (2) "Hospital owner" means a not-for-profit
2    corporation that is the titleholder of a hospital, or the
3    owner of the beneficial interest in an Illinois land trust
4    that is the titleholder of a hospital.
5        (3) "Hospital affiliate" means any corporation,
6    partnership, limited partnership, joint venture, limited
7    liability company, association or other organization,
8    other than a hospital owner, that directly or indirectly
9    controls, is controlled by, or is under common control
10    with one or more hospital owners and that supports, is
11    supported by, or acts in furtherance of the exempt health
12    care purposes of at least one of those hospital owners'
13    hospitals.
14        (4) "Hospital system" means a hospital and one or more
15    other hospitals or hospital affiliates related by common
16    control or ownership.
17        (5) "Control" relating to hospital owners, hospital
18    affiliates, or hospital systems means possession, direct
19    or indirect, of the power to direct or cause the direction
20    of the management and policies of the entity, whether
21    through ownership of assets, membership interest, other
22    voting or governance rights, by contract or otherwise.
23        (6) "Hospital applicant" means a hospital owner or
24    hospital affiliate that files an application for an
25    exemption or renewal of exemption under this Section.
26        (7) "Relevant hospital entity" means (A) the hospital

 

 

SB0157 Enrolled- 111 -LRB102 10128 HLH 16591 b

1    owner, in the case of a hospital applicant that is a
2    hospital owner, and (B) at the election of a hospital
3    applicant that is a hospital affiliate, either (i) the
4    hospital affiliate or (ii) the hospital system to which
5    the hospital applicant belongs, including any hospitals or
6    hospital affiliates that are related by common control or
7    ownership.
8        (8) "Subject property" means property used for the
9    calculation under subsection (b) of this Section.
10        (9) "Hospital year" means the fiscal year of the
11    relevant hospital entity, or the fiscal year of one of the
12    hospital owners in the hospital system if the relevant
13    hospital entity is a hospital system with members with
14    different fiscal years, that ends in the year for which
15    the exemption is sought.
16    (i) It is the intent of the General Assembly that any
17exemptions taken, granted, or renewed under this Section prior
18to the effective date of this amendatory Act of the 100th
19General Assembly are hereby validated.
20    (j) It is the intent of the General Assembly that the
21exemption under this Section applies on a continuous basis. If
22this amendatory Act of the 102nd General Assembly takes effect
23after July 1, 2022, any exemptions taken, granted, or renewed
24under this Section on or after July 1, 2022 and prior to the
25effective date of this amendatory Act of the 102nd General
26Assembly are hereby validated.

 

 

SB0157 Enrolled- 112 -LRB102 10128 HLH 16591 b

1    (k) This Section is exempt from the provisions of Section
22-70.
3(Source: P.A. 99-143, eff. 7-27-15; 100-1181, eff. 3-8-19.)
 
4
ARTICLE 30. ORGAN DONATION

 
5    Section 30-5. The Illinois Income Tax Act is amended by
6changing Section 704A as follows:
 
7    (35 ILCS 5/704A)
8    Sec. 704A. Employer's return and payment of tax withheld.
9    (a) In general, every employer who deducts and withholds
10or is required to deduct and withhold tax under this Act on or
11after January 1, 2008 shall make those payments and returns as
12provided in this Section.
13    (b) Returns. Every employer shall, in the form and manner
14required by the Department, make returns with respect to taxes
15withheld or required to be withheld under this Article 7 for
16each quarter beginning on or after January 1, 2008, on or
17before the last day of the first month following the close of
18that quarter.
19    (c) Payments. With respect to amounts withheld or required
20to be withheld on or after January 1, 2008:
21        (1) Semi-weekly payments. For each calendar year, each
22    employer who withheld or was required to withhold more
23    than $12,000 during the one-year period ending on June 30

 

 

SB0157 Enrolled- 113 -LRB102 10128 HLH 16591 b

1    of the immediately preceding calendar year, payment must
2    be made:
3            (A) on or before each Friday of the calendar year,
4        for taxes withheld or required to be withheld on the
5        immediately preceding Saturday, Sunday, Monday, or
6        Tuesday;
7            (B) on or before each Wednesday of the calendar
8        year, for taxes withheld or required to be withheld on
9        the immediately preceding Wednesday, Thursday, or
10        Friday.
11        Beginning with calendar year 2011, payments made under
12    this paragraph (1) of subsection (c) must be made by
13    electronic funds transfer.
14        (2) Semi-weekly payments. Any employer who withholds
15    or is required to withhold more than $12,000 in any
16    quarter of a calendar year is required to make payments on
17    the dates set forth under item (1) of this subsection (c)
18    for each remaining quarter of that calendar year and for
19    the subsequent calendar year.
20        (3) Monthly payments. Each employer, other than an
21    employer described in items (1) or (2) of this subsection,
22    shall pay to the Department, on or before the 15th day of
23    each month the taxes withheld or required to be withheld
24    during the immediately preceding month.
25        (4) Payments with returns. Each employer shall pay to
26    the Department, on or before the due date for each return

 

 

SB0157 Enrolled- 114 -LRB102 10128 HLH 16591 b

1    required to be filed under this Section, any tax withheld
2    or required to be withheld during the period for which the
3    return is due and not previously paid to the Department.
4    (d) Regulatory authority. The Department may, by rule:
5        (1) Permit employers, in lieu of the requirements of
6    subsections (b) and (c), to file annual returns due on or
7    before January 31 of the year for taxes withheld or
8    required to be withheld during the previous calendar year
9    and, if the aggregate amounts required to be withheld by
10    the employer under this Article 7 (other than amounts
11    required to be withheld under Section 709.5) do not exceed
12    $1,000 for the previous calendar year, to pay the taxes
13    required to be shown on each such return no later than the
14    due date for such return.
15        (2) Provide that any payment required to be made under
16    subsection (c)(1) or (c)(2) is deemed to be timely to the
17    extent paid by electronic funds transfer on or before the
18    due date for deposit of federal income taxes withheld
19    from, or federal employment taxes due with respect to, the
20    wages from which the Illinois taxes were withheld.
21        (3) Designate one or more depositories to which
22    payment of taxes required to be withheld under this
23    Article 7 must be paid by some or all employers.
24        (4) Increase the threshold dollar amounts at which
25    employers are required to make semi-weekly payments under
26    subsection (c)(1) or (c)(2).

 

 

SB0157 Enrolled- 115 -LRB102 10128 HLH 16591 b

1    (e) Annual return and payment. Every employer who deducts
2and withholds or is required to deduct and withhold tax from a
3person engaged in domestic service employment, as that term is
4defined in Section 3510 of the Internal Revenue Code, may
5comply with the requirements of this Section with respect to
6such employees by filing an annual return and paying the taxes
7required to be deducted and withheld on or before the 15th day
8of the fourth month following the close of the employer's
9taxable year. The Department may allow the employer's return
10to be submitted with the employer's individual income tax
11return or to be submitted with a return due from the employer
12under Section 1400.2 of the Unemployment Insurance Act.
13    (f) Magnetic media and electronic filing. With respect to
14taxes withheld in calendar years prior to 2017, any W-2 Form
15that, under the Internal Revenue Code and regulations
16promulgated thereunder, is required to be submitted to the
17Internal Revenue Service on magnetic media or electronically
18must also be submitted to the Department on magnetic media or
19electronically for Illinois purposes, if required by the
20Department.
21    With respect to taxes withheld in 2017 and subsequent
22calendar years, the Department may, by rule, require that any
23return (including any amended return) under this Section and
24any W-2 Form that is required to be submitted to the Department
25must be submitted on magnetic media or electronically.
26    The due date for submitting W-2 Forms shall be as

 

 

SB0157 Enrolled- 116 -LRB102 10128 HLH 16591 b

1prescribed by the Department by rule.
2    (g) For amounts deducted or withheld after December 31,
32009, a taxpayer who makes an election under subsection (f) of
4Section 5-15 of the Economic Development for a Growing Economy
5Tax Credit Act for a taxable year shall be allowed a credit
6against payments due under this Section for amounts withheld
7during the first calendar year beginning after the end of that
8taxable year equal to the amount of the credit for the
9incremental income tax attributable to full-time employees of
10the taxpayer awarded to the taxpayer by the Department of
11Commerce and Economic Opportunity under the Economic
12Development for a Growing Economy Tax Credit Act for the
13taxable year and credits not previously claimed and allowed to
14be carried forward under Section 211(4) of this Act as
15provided in subsection (f) of Section 5-15 of the Economic
16Development for a Growing Economy Tax Credit Act. The credit
17or credits may not reduce the taxpayer's obligation for any
18payment due under this Section to less than zero. If the amount
19of the credit or credits exceeds the total payments due under
20this Section with respect to amounts withheld during the
21calendar year, the excess may be carried forward and applied
22against the taxpayer's liability under this Section in the
23succeeding calendar years as allowed to be carried forward
24under paragraph (4) of Section 211 of this Act. The credit or
25credits shall be applied to the earliest year for which there
26is a tax liability. If there are credits from more than one

 

 

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1taxable year that are available to offset a liability, the
2earlier credit shall be applied first. Each employer who
3deducts and withholds or is required to deduct and withhold
4tax under this Act and who retains income tax withholdings
5under subsection (f) of Section 5-15 of the Economic
6Development for a Growing Economy Tax Credit Act must make a
7return with respect to such taxes and retained amounts in the
8form and manner that the Department, by rule, requires and pay
9to the Department or to a depositary designated by the
10Department those withheld taxes not retained by the taxpayer.
11For purposes of this subsection (g), the term taxpayer shall
12include taxpayer and members of the taxpayer's unitary
13business group as defined under paragraph (27) of subsection
14(a) of Section 1501 of this Act. This Section is exempt from
15the provisions of Section 250 of this Act. No credit awarded
16under the Economic Development for a Growing Economy Tax
17Credit Act for agreements entered into on or after January 1,
182015 may be credited against payments due under this Section.
19    (g-1) For amounts deducted or withheld after December 31,
202024, a taxpayer who makes an election under the Reimagining
21Electric Vehicles in Illinois Act shall be allowed a credit
22against payments due under this Section for amounts withheld
23during the first quarterly reporting period beginning after
24the certificate is issued equal to the portion of the REV
25Illinois Credit attributable to the incremental income tax
26attributable to new employees and retained employees as

 

 

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1certified by the Department of Commerce and Economic
2Opportunity pursuant to an agreement with the taxpayer under
3the Reimagining Electric Vehicles in Illinois Act for the
4taxable year. The credit or credits may not reduce the
5taxpayer's obligation for any payment due under this Section
6to less than zero. If the amount of the credit or credits
7exceeds the total payments due under this Section with respect
8to amounts withheld during the quarterly reporting period, the
9excess may be carried forward and applied against the
10taxpayer's liability under this Section in the succeeding
11quarterly reporting period as allowed to be carried forward
12under paragraph (4) of Section 211 of this Act. The credit or
13credits shall be applied to the earliest quarterly reporting
14period for which there is a tax liability. If there are credits
15from more than one quarterly reporting period that are
16available to offset a liability, the earlier credit shall be
17applied first. Each employer who deducts and withholds or is
18required to deduct and withhold tax under this Act and who
19retains income tax withholdings this subsection must make a
20return with respect to such taxes and retained amounts in the
21form and manner that the Department, by rule, requires and pay
22to the Department or to a depositary designated by the
23Department those withheld taxes not retained by the taxpayer.
24For purposes of this subsection (g-1), the term taxpayer shall
25include taxpayer and members of the taxpayer's unitary
26business group as defined under paragraph (27) of subsection

 

 

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1(a) of Section 1501 of this Act. This Section is exempt from
2the provisions of Section 250 of this Act.
3    (h) An employer may claim a credit against payments due
4under this Section for amounts withheld during the first
5calendar year ending after the date on which a tax credit
6certificate was issued under Section 35 of the Small Business
7Job Creation Tax Credit Act. The credit shall be equal to the
8amount shown on the certificate, but may not reduce the
9taxpayer's obligation for any payment due under this Section
10to less than zero. If the amount of the credit exceeds the
11total payments due under this Section with respect to amounts
12withheld during the calendar year, the excess may be carried
13forward and applied against the taxpayer's liability under
14this Section in the 5 succeeding calendar years. The credit
15shall be applied to the earliest year for which there is a tax
16liability. If there are credits from more than one calendar
17year that are available to offset a liability, the earlier
18credit shall be applied first. This Section is exempt from the
19provisions of Section 250 of this Act.
20    (i) Each employer with 50 or fewer full-time equivalent
21employees during the reporting period may claim a credit
22against the payments due under this Section for each qualified
23employee in an amount equal to the maximum credit allowable.
24The credit may be taken against payments due for reporting
25periods that begin on or after January 1, 2020, and end on or
26before December 31, 2027. An employer may not claim a credit

 

 

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1for an employee who has worked fewer than 90 consecutive days
2immediately preceding the reporting period; however, such
3credits may accrue during that 90-day period and be claimed
4against payments under this Section for future reporting
5periods after the employee has worked for the employer at
6least 90 consecutive days. In no event may the credit exceed
7the employer's liability for the reporting period. Each
8employer who deducts and withholds or is required to deduct
9and withhold tax under this Act and who retains income tax
10withholdings under this subsection must make a return with
11respect to such taxes and retained amounts in the form and
12manner that the Department, by rule, requires and pay to the
13Department or to a depositary designated by the Department
14those withheld taxes not retained by the employer.
15    For each reporting period, the employer may not claim a
16credit or credits for more employees than the number of
17employees making less than the minimum or reduced wage for the
18current calendar year during the last reporting period of the
19preceding calendar year. Notwithstanding any other provision
20of this subsection, an employer shall not be eligible for
21credits for a reporting period unless the average wage paid by
22the employer per employee for all employees making less than
23$55,000 during the reporting period is greater than the
24average wage paid by the employer per employee for all
25employees making less than $55,000 during the same reporting
26period of the prior calendar year.

 

 

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1    For purposes of this subsection (i):
2    "Compensation paid in Illinois" has the meaning ascribed
3to that term under Section 304(a)(2)(B) of this Act.
4    "Employer" and "employee" have the meaning ascribed to
5those terms in the Minimum Wage Law, except that "employee"
6also includes employees who work for an employer with fewer
7than 4 employees. Employers that operate more than one
8establishment pursuant to a franchise agreement or that
9constitute members of a unitary business group shall aggregate
10their employees for purposes of determining eligibility for
11the credit.
12    "Full-time equivalent employees" means the ratio of the
13number of paid hours during the reporting period and the
14number of working hours in that period.
15    "Maximum credit" means the percentage listed below of the
16difference between the amount of compensation paid in Illinois
17to employees who are paid not more than the required minimum
18wage reduced by the amount of compensation paid in Illinois to
19employees who were paid less than the current required minimum
20wage during the reporting period prior to each increase in the
21required minimum wage on January 1. If an employer pays an
22employee more than the required minimum wage and that employee
23previously earned less than the required minimum wage, the
24employer may include the portion that does not exceed the
25required minimum wage as compensation paid in Illinois to
26employees who are paid not more than the required minimum

 

 

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1wage.
2        (1) 25% for reporting periods beginning on or after
3    January 1, 2020 and ending on or before December 31, 2020;
4        (2) 21% for reporting periods beginning on or after
5    January 1, 2021 and ending on or before December 31, 2021;
6        (3) 17% for reporting periods beginning on or after
7    January 1, 2022 and ending on or before December 31, 2022;
8        (4) 13% for reporting periods beginning on or after
9    January 1, 2023 and ending on or before December 31, 2023;
10        (5) 9% for reporting periods beginning on or after
11    January 1, 2024 and ending on or before December 31, 2024;
12        (6) 5% for reporting periods beginning on or after
13    January 1, 2025 and ending on or before December 31, 2025.
14    The amount computed under this subsection may continue to
15be claimed for reporting periods beginning on or after January
161, 2026 and:
17        (A) ending on or before December 31, 2026 for
18    employers with more than 5 employees; or
19        (B) ending on or before December 31, 2027 for
20    employers with no more than 5 employees.
21    "Qualified employee" means an employee who is paid not
22more than the required minimum wage and has an average wage
23paid per hour by the employer during the reporting period
24equal to or greater than his or her average wage paid per hour
25by the employer during each reporting period for the
26immediately preceding 12 months. A new qualified employee is

 

 

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1deemed to have earned the required minimum wage in the
2preceding reporting period.
3    "Reporting period" means the quarter for which a return is
4required to be filed under subsection (b) of this Section.
5    (j) For reporting periods beginning on or after January 1,
62023, if a private employer grants all of its employees the
7option of taking a paid leave of absence of at least 30 days
8for the purpose of serving as an organ donor or bone marrow
9donor, then the private employer may take a credit against the
10payments due under this Section in an amount equal to the
11amount withheld under this Section with respect to wages paid
12while the employee is on organ donation leave, not to exceed
13$1,000 in withholdings for each employee who takes organ
14donation leave. To be eligible for the credit, such a leave of
15absence must be taken without loss of pay, vacation time,
16compensatory time, personal days, or sick time for at least
17the first 30 days of the leave of absence. The private employer
18shall adopt rules governing organ donation leave, including
19rules that (i) establish conditions and procedures for
20requesting and approving leave and (ii) require medical
21documentation of the proposed organ or bone marrow donation
22before leave is approved by the private employer. A private
23employer must provide, in the manner required by the
24Department, documentation from the employee's medical
25provider, which the private employer receives from the
26employee, that verifies the employee's organ donation. The

 

 

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1private employer must also provide, in the manner required by
2the Department, documentation that shows that a qualifying
3organ donor leave policy was in place and offered to all
4qualifying employees at the time the leave was taken. For the
5private employer to receive the tax credit, the employee
6taking organ donor leave must allow for the applicable medical
7records to be disclosed to the Department. If the private
8employer cannot provide the required documentation to the
9Department, then the private employer is ineligible for the
10credit under this Section. A private employer must also
11provide, in the form required by the Department, any
12additional documentation or information required by the
13Department to administer the credit under this Section. The
14credit under this subsection (j) shall be taken within one
15year after the date upon which the organ donation leave
16begins. If the leave taken spans into a second tax year, the
17employer qualifies for the allowable credit in the later of
18the 2 years. If the amount of credit exceeds the tax liability
19for the year, the excess may be carried and applied to the tax
20liability for the 3 taxable years following the excess credit
21year. The tax credit shall be applied to the earliest year for
22which there is a tax liability. If there are credits for more
23than one year that are available to offset liability, the
24earlier credit shall be applied first.
25    Nothing in this subsection (j) prohibits a private
26employer from providing an unpaid leave of absence to its

 

 

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1employees for the purpose of serving as an organ donor or bone
2marrow donor; however, if the employer's policy provides for
3fewer than 30 days of paid leave for organ or bone marrow
4donation, then the employer shall not be eligible for the
5credit under this Section.
6    As used in this subsection (j):
7        "Organ" means any biological tissue of the human body
8    that may be donated by a living donor, including, but not
9    limited to, the kidney, liver, lung, pancreas, intestine,
10    bone, skin, or any subpart of those organs.
11        "Organ donor" means a person from whose body an organ
12    is taken to be transferred to the body of another person.
13        "Private employer" means a sole proprietorship,
14    corporation, partnership, limited liability company, or
15    other entity with one or more employees. "Private
16    employer" does not include a municipality, county, State
17    agency, or other public employer.
18    This subsection (j) is exempt from the provisions of
19Section 250 of this Act.
20(Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21.)
 
21
ARTICLE 40. TAX REBATES

 
22    Section 40-3. The Illinois Administrative Procedure Act is
23amended by adding Section 5-45.21 as follows:
 

 

 

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1    (5 ILCS 100/5-45.21 new)
2    Sec. 5-45.21. Emergency rulemaking. To provide for the
3expeditious and timely implementation of this amendatory Act
4of the 102nd General Assembly, emergency rules implementing
5Sections 208.5 and 212.1 of the Illinois Income Tax Act may be
6adopted in accordance with Section 5-45 by the Department of
7Revenue. The adoption of emergency rules authorized by Section
85-45 and this Section is deemed to be necessary for the public
9interest, safety, and welfare.
10    This Section is repealed one year after the effective date
11of this amendatory Act of the 102nd General Assembly.
 
12    Section 40-5. The State Finance Act is amended by changing
13Section 8g-1 as follows:
 
14    (30 ILCS 105/8g-1)
15    Sec. 8g-1. Fund transfers.
16    (a) (Blank).
17    (b) (Blank).
18    (c) (Blank).
19    (d) (Blank).
20    (e) (Blank).
21    (f) (Blank).
22    (g) (Blank).
23    (h) (Blank).
24    (i) (Blank).

 

 

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1    (j) (Blank).
2    (k) (Blank).
3    (l) (Blank).
4    (m) (Blank).
5    (n) (Blank).
6    (o) (Blank).
7    (p) (Blank).
8    (q) (Blank).
9    (r) (Blank).
10    (s) (Blank).
11    (t) (Blank).
12    (u) In addition to any other transfers that may be
13provided for by law, on July 1, 2021, or as soon thereafter as
14practical, only as directed by the Director of the Governor's
15Office of Management and Budget, the State Comptroller shall
16direct and the State Treasurer shall transfer the sum of
17$5,000,000 from the General Revenue Fund to the DoIT Special
18Projects Fund, and on June 1, 2022, or as soon thereafter as
19practical, but no later than June 30, 2022, the State
20Comptroller shall direct and the State Treasurer shall
21transfer the sum so transferred from the DoIT Special Projects
22Fund to the General Revenue Fund.
23    (v) In addition to any other transfers that may be
24provided for by law, on July 1, 2021, or as soon thereafter as
25practical, the State Comptroller shall direct and the State
26Treasurer shall transfer the sum of $500,000 from the General

 

 

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1Revenue Fund to the Governor's Administrative Fund.
2    (w) In addition to any other transfers that may be
3provided for by law, on July 1, 2021, or as soon thereafter as
4practical, the State Comptroller shall direct and the State
5Treasurer shall transfer the sum of $500,000 from the General
6Revenue Fund to the Grant Accountability and Transparency
7Fund.
8    (x) In addition to any other transfers that may be
9provided for by law, at a time or times during Fiscal Year 2022
10as directed by the Governor, the State Comptroller shall
11direct and the State Treasurer shall transfer up to a total of
12$20,000,000 from the General Revenue Fund to the Illinois
13Sports Facilities Fund to be credited to the Advance Account
14within the Fund.
15    (y) In addition to any other transfers that may be
16provided for by law, on June 15, 2021, or as soon thereafter as
17practical, but no later than June 30, 2021, the State
18Comptroller shall direct and the State Treasurer shall
19transfer the sum of $100,000,000 from the General Revenue Fund
20to the Technology Management Revolving Fund.
21    (z) In addition to any other transfers that may be
22provided by law, on the effective date of this amendatory Act
23of the 102nd General Assembly, or as soon thereafter as
24practical, but no later than June 30, 2022, the State
25Comptroller shall direct and the State Treasurer shall
26transfer the sum of $685,000,000 from the General Revenue Fund

 

 

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1to the Income Tax Refund Fund. Moneys from this transfer shall
2be used for the purpose of making the one-time rebate payments
3provided under Section 212.1 of the Illinois Income Tax Act.
4    (aa) In addition to any other transfers that may be
5provided by law, beginning on the effective date of this
6amendatory Act of the 102nd General Assembly and until
7December 31, 2023, at the direction of the Department of
8Revenue, the State Comptroller shall direct and the State
9Treasurer shall transfer from the General Revenue Fund to the
10Income Tax Refund Fund any amounts needed beyond the amounts
11transferred in subsection (z) to make payments of the one-time
12rebate payments provided under Section 212.1 of the Illinois
13Income Tax Act.
14(Source: P.A. 101-10, eff. 6-5-19; 101-636, eff. 6-10-20;
15102-16, eff. 6-17-21.)
 
16    Section 40-10. The Illinois Income Tax Act is amended by
17changing Section 901 and by adding Sections 208.5 and 212.1 as
18follows:
 
19    (35 ILCS 5/208.5 new)
20    Sec. 208.5. Residential real estate tax rebate.
21    (a) The Department shall pay a one-time rebate to every
22individual taxpayer who files with the Department, on or
23before October 17, 2022, an Illinois income tax return for tax
24year 2021 and who qualifies, in that tax year, under rules

 

 

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1adopted by the Department, for the income tax credit provided
2under Section 208 of this Act. The amount of the one-time
3rebate provided under this Section shall be the lesser of: (1)
4the amount of the credit provided under Section 208 for tax
5year 2021, including any amounts that would otherwise reduce a
6taxpayer's liability to less than zero, or (2) $300 per
7principal residence. The Department shall develop a process to
8claim a rebate for taxpayers who otherwise would be eligible
9for the rebate under this Section but who did not have an
10obligation to file a 2021 Illinois income tax return because
11their exemption allowance exceeded their Illinois base income.
12    (b) On the effective date of this amendatory Act of the
13102nd General Assembly, or as soon thereafter as practical,
14but no later than June 30, 2022, the State Comptroller shall
15direct and the State Treasurer shall transfer the sum of
16$470,000,000 from the General Revenue Fund to the Income Tax
17Refund Fund.
18    (c) On July 1, 2022, or as soon thereafter as practical,
19the State Comptroller shall direct and the State Treasurer
20shall transfer the sum of $50,000,000 from the General Revenue
21Fund to the Income Tax Refund Fund.
22    (d) In addition to any other transfers that may be
23provided for by law, beginning on the effective date of this
24amendatory Act of the 102nd General Assembly and until June
2530, 2023, the Director may certify additional transfer amounts
26needed beyond the amounts specified in subsections (b) and

 

 

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1(c). The State Comptroller shall direct and the State
2Treasurer shall transfer the amounts certified by the Director
3from the General Revenue Fund to the Income Tax Refund Fund.
4    (e) The one-time rebate payments provided under this
5Section shall be paid from the Income Tax Refund Fund.
6    (f) Beginning on July 5, 2022, the Department shall
7certify to the Comptroller the names of the taxpayers who are
8eligible for a one-time rebate under this Section, the amounts
9of those rebates, and any other information that the
10Comptroller requires to direct the payment of the rebates
11provided under this Section to taxpayers.
12    (g) The amount of a rebate under this Section shall not be
13included in the taxpayer's income or resources for the
14purposes of determining eligibility or benefit level in any
15means-tested benefit program administered by a governmental
16entity unless required by federal law.
17    (h) Notwithstanding any other law to the contrary, the
18rebates shall not be subject to offset by the Comptroller
19against any liability owed either to the State or to any unit
20of local government.
21    (i) This Section is repealed on January 1, 2024.
 
22    (35 ILCS 5/212.1 new)
23    Sec. 212.1. Individual income tax rebates.
24    (a) Each taxpayer who files an individual income tax
25return under this Act, on or before October 17, 2022, for the

 

 

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1taxable year that began on January 1, 2021 and whose adjusted
2gross income for the taxable year is less than (i) $400,000, in
3the case of spouses filing a joint federal tax return, or (ii)
4$200,000, in the case of all other taxpayers, is entitled to a
5one-time rebate under this Section. The amount of the rebate
6shall be $50 for single filers and $100 for spouses filing a
7joint return, plus an additional $100 for each person who is
8claimed as a dependent, up to 3 dependents, on the taxpayer's
9federal income tax return for the taxable year that began on
10January 1, 2021. A taxpayer who files an individual income tax
11return under this Act for the taxable year that began on
12January 1, 2021, and who is claimed as a dependent on another
13individual's return for that year, is ineligible for the
14rebate provided under this Section. Spouses who qualify for a
15rebate under this Section and who file a joint return shall be
16treated as a single taxpayer for the purposes of the rebate
17under this Section. For a part-year resident, the amount of
18the rebate under this Section shall be in proportion to the
19amount of the taxpayer's income that is attributable to this
20State for the taxable year that began on January 1, 2021.
21Taxpayers who were non-residents for the taxable year that
22began on January 1, 2021 are not entitled to a rebate under
23this Section.
24    (b) Beginning on July 5, 2022, the Department shall
25certify to the Comptroller the names of the taxpayers who are
26eligible for a one-time rebate under this Section, the amounts

 

 

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1of those rebates, and any other information that the
2Comptroller requires to direct the payment of the rebates
3provided under this Section to taxpayers.
4    (c) If a taxpayer files an amended return indicating that
5the taxpayer is entitled to a rebate under this Section that
6the taxpayer did not receive, or indicating that the taxpayer
7did not receive the full rebate amount to which the taxpayer is
8entitled, then the rebate shall be processed in the same
9manner as a claim for refund under Article 9. If the taxpayer
10files an amended return indicating that the taxpayer received
11a rebate under this Section to which the taxpayer is not
12entitled, then the Department shall issue a notice of
13deficiency as provided in Article 9.
14    (d) The Department shall make the rebate payments
15authorized by this Section from the Income Tax Refund Fund.
16    (e) The amount of a rebate under this Section shall not be
17included in the taxpayer's income or resources for the
18purposes of determining eligibility or benefit level in any
19means-tested benefit program administered by a governmental
20entity unless required by federal law.
21    (f) Nothing in this Section prevents a taxpayer from
22receiving the earned income tax credit and the rebate under
23this Section for the same taxable year.
24    (g) Notwithstanding any other law to the contrary, the
25rebates shall not be subject to offset by the Comptroller
26against any liability owed either to the State or to any unit

 

 

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1of local government.
2    (h) The Department shall adopt rules for the
3implementation of this Section, including emergency rules
4under Section 5-45.21 of the Illinois Administrative Procedure
5Act.
6    (i) This Section is repealed one year after the effective
7date of this amendatory Act of the 102nd General Assembly.
 
8    (35 ILCS 5/901)
9    Sec. 901. Collection authority.
10    (a) In general. The Department shall collect the taxes
11imposed by this Act. The Department shall collect certified
12past due child support amounts under Section 2505-650 of the
13Department of Revenue Law of the Civil Administrative Code of
14Illinois. Except as provided in subsections (b), (c), (e),
15(f), (g), and (h) of this Section, money collected pursuant to
16subsections (a) and (b) of Section 201 of this Act shall be
17paid into the General Revenue Fund in the State treasury;
18money collected pursuant to subsections (c) and (d) of Section
19201 of this Act shall be paid into the Personal Property Tax
20Replacement Fund, a special fund in the State Treasury; and
21money collected under Section 2505-650 of the Department of
22Revenue Law of the Civil Administrative Code of Illinois shall
23be paid into the Child Support Enforcement Trust Fund, a
24special fund outside the State Treasury, or to the State
25Disbursement Unit established under Section 10-26 of the

 

 

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1Illinois Public Aid Code, as directed by the Department of
2Healthcare and Family Services.
3    (b) Local Government Distributive Fund. Beginning August
41, 2017, the Treasurer shall transfer each month from the
5General Revenue Fund to the Local Government Distributive Fund
6an amount equal to the sum of: (i) 6.06% (10% of the ratio of
7the 3% individual income tax rate prior to 2011 to the 4.95%
8individual income tax rate after July 1, 2017) of the net
9revenue realized from the tax imposed by subsections (a) and
10(b) of Section 201 of this Act upon individuals, trusts, and
11estates during the preceding month; (ii) 6.85% (10% of the
12ratio of the 4.8% corporate income tax rate prior to 2011 to
13the 7% corporate income tax rate after July 1, 2017) of the net
14revenue realized from the tax imposed by subsections (a) and
15(b) of Section 201 of this Act upon corporations during the
16preceding month; and (iii) beginning February 1, 2022, 6.06%
17of the net revenue realized from the tax imposed by subsection
18(p) of Section 201 of this Act upon electing pass-through
19entities. Net revenue realized for a month shall be defined as
20the revenue from the tax imposed by subsections (a) and (b) of
21Section 201 of this Act which is deposited in the General
22Revenue Fund, the Education Assistance Fund, the Income Tax
23Surcharge Local Government Distributive Fund, the Fund for the
24Advancement of Education, and the Commitment to Human Services
25Fund during the month minus the amount paid out of the General
26Revenue Fund in State warrants during that same month as

 

 

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1refunds to taxpayers for overpayment of liability under the
2tax imposed by subsections (a) and (b) of Section 201 of this
3Act.
4    Notwithstanding any provision of law to the contrary,
5beginning on July 6, 2017 (the effective date of Public Act
6100-23), those amounts required under this subsection (b) to
7be transferred by the Treasurer into the Local Government
8Distributive Fund from the General Revenue Fund shall be
9directly deposited into the Local Government Distributive Fund
10as the revenue is realized from the tax imposed by subsections
11(a) and (b) of Section 201 of this Act.
12    (c) Deposits Into Income Tax Refund Fund.
13        (1) Beginning on January 1, 1989 and thereafter, the
14    Department shall deposit a percentage of the amounts
15    collected pursuant to subsections (a) and (b)(1), (2), and
16    (3) of Section 201 of this Act into a fund in the State
17    treasury known as the Income Tax Refund Fund. Beginning
18    with State fiscal year 1990 and for each fiscal year
19    thereafter, the percentage deposited into the Income Tax
20    Refund Fund during a fiscal year shall be the Annual
21    Percentage. For fiscal year 2011, the Annual Percentage
22    shall be 8.75%. For fiscal year 2012, the Annual
23    Percentage shall be 8.75%. For fiscal year 2013, the
24    Annual Percentage shall be 9.75%. For fiscal year 2014,
25    the Annual Percentage shall be 9.5%. For fiscal year 2015,
26    the Annual Percentage shall be 10%. For fiscal year 2018,

 

 

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1    the Annual Percentage shall be 9.8%. For fiscal year 2019,
2    the Annual Percentage shall be 9.7%. For fiscal year 2020,
3    the Annual Percentage shall be 9.5%. For fiscal year 2021,
4    the Annual Percentage shall be 9%. For fiscal year 2022,
5    the Annual Percentage shall be 9.25%. For all other fiscal
6    years, the Annual Percentage shall be calculated as a
7    fraction, the numerator of which shall be the amount of
8    refunds approved for payment by the Department during the
9    preceding fiscal year as a result of overpayment of tax
10    liability under subsections (a) and (b)(1), (2), and (3)
11    of Section 201 of this Act plus the amount of such refunds
12    remaining approved but unpaid at the end of the preceding
13    fiscal year, minus the amounts transferred into the Income
14    Tax Refund Fund from the Tobacco Settlement Recovery Fund,
15    and the denominator of which shall be the amounts which
16    will be collected pursuant to subsections (a) and (b)(1),
17    (2), and (3) of Section 201 of this Act during the
18    preceding fiscal year; except that in State fiscal year
19    2002, the Annual Percentage shall in no event exceed 7.6%.
20    The Director of Revenue shall certify the Annual
21    Percentage to the Comptroller on the last business day of
22    the fiscal year immediately preceding the fiscal year for
23    which it is to be effective.
24        (2) Beginning on January 1, 1989 and thereafter, the
25    Department shall deposit a percentage of the amounts
26    collected pursuant to subsections (a) and (b)(6), (7), and

 

 

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1    (8), (c) and (d) of Section 201 of this Act into a fund in
2    the State treasury known as the Income Tax Refund Fund.
3    Beginning with State fiscal year 1990 and for each fiscal
4    year thereafter, the percentage deposited into the Income
5    Tax Refund Fund during a fiscal year shall be the Annual
6    Percentage. For fiscal year 2011, the Annual Percentage
7    shall be 17.5%. For fiscal year 2012, the Annual
8    Percentage shall be 17.5%. For fiscal year 2013, the
9    Annual Percentage shall be 14%. For fiscal year 2014, the
10    Annual Percentage shall be 13.4%. For fiscal year 2015,
11    the Annual Percentage shall be 14%. For fiscal year 2018,
12    the Annual Percentage shall be 17.5%. For fiscal year
13    2019, the Annual Percentage shall be 15.5%. For fiscal
14    year 2020, the Annual Percentage shall be 14.25%. For
15    fiscal year 2021, the Annual Percentage shall be 14%. For
16    fiscal year 2022, the Annual Percentage shall be 15%. For
17    all other fiscal years, the Annual Percentage shall be
18    calculated as a fraction, the numerator of which shall be
19    the amount of refunds approved for payment by the
20    Department during the preceding fiscal year as a result of
21    overpayment of tax liability under subsections (a) and
22    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
23    Act plus the amount of such refunds remaining approved but
24    unpaid at the end of the preceding fiscal year, and the
25    denominator of which shall be the amounts which will be
26    collected pursuant to subsections (a) and (b)(6), (7), and

 

 

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1    (8), (c) and (d) of Section 201 of this Act during the
2    preceding fiscal year; except that in State fiscal year
3    2002, the Annual Percentage shall in no event exceed 23%.
4    The Director of Revenue shall certify the Annual
5    Percentage to the Comptroller on the last business day of
6    the fiscal year immediately preceding the fiscal year for
7    which it is to be effective.
8        (3) The Comptroller shall order transferred and the
9    Treasurer shall transfer from the Tobacco Settlement
10    Recovery Fund to the Income Tax Refund Fund (i)
11    $35,000,000 in January, 2001, (ii) $35,000,000 in January,
12    2002, and (iii) $35,000,000 in January, 2003.
13    (d) Expenditures from Income Tax Refund Fund.
14        (1) Beginning January 1, 1989, money in the Income Tax
15    Refund Fund shall be expended exclusively for the purpose
16    of paying refunds resulting from overpayment of tax
17    liability under Section 201 of this Act and for making
18    transfers pursuant to this subsection (d), except that in
19    State fiscal years 2022 and 2023, moneys in the Income Tax
20    Refund Fund shall also be used to pay one-time rebate
21    payments as provided under Sections 208.5 and 212.1.
22        (2) The Director shall order payment of refunds
23    resulting from overpayment of tax liability under Section
24    201 of this Act from the Income Tax Refund Fund only to the
25    extent that amounts collected pursuant to Section 201 of
26    this Act and transfers pursuant to this subsection (d) and

 

 

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1    item (3) of subsection (c) have been deposited and
2    retained in the Fund.
3        (3) As soon as possible after the end of each fiscal
4    year, the Director shall order transferred and the State
5    Treasurer and State Comptroller shall transfer from the
6    Income Tax Refund Fund to the Personal Property Tax
7    Replacement Fund an amount, certified by the Director to
8    the Comptroller, equal to the excess of the amount
9    collected pursuant to subsections (c) and (d) of Section
10    201 of this Act deposited into the Income Tax Refund Fund
11    during the fiscal year over the amount of refunds
12    resulting from overpayment of tax liability under
13    subsections (c) and (d) of Section 201 of this Act paid
14    from the Income Tax Refund Fund during the fiscal year.
15        (4) As soon as possible after the end of each fiscal
16    year, the Director shall order transferred and the State
17    Treasurer and State Comptroller shall transfer from the
18    Personal Property Tax Replacement Fund to the Income Tax
19    Refund Fund an amount, certified by the Director to the
20    Comptroller, equal to the excess of the amount of refunds
21    resulting from overpayment of tax liability under
22    subsections (c) and (d) of Section 201 of this Act paid
23    from the Income Tax Refund Fund during the fiscal year
24    over the amount collected pursuant to subsections (c) and
25    (d) of Section 201 of this Act deposited into the Income
26    Tax Refund Fund during the fiscal year.

 

 

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1        (4.5) As soon as possible after the end of fiscal year
2    1999 and of each fiscal year thereafter, the Director
3    shall order transferred and the State Treasurer and State
4    Comptroller shall transfer from the Income Tax Refund Fund
5    to the General Revenue Fund any surplus remaining in the
6    Income Tax Refund Fund as of the end of such fiscal year;
7    excluding for fiscal years 2000, 2001, and 2002 amounts
8    attributable to transfers under item (3) of subsection (c)
9    less refunds resulting from the earned income tax credit,
10    and excluding for fiscal year 2022 amounts attributable to
11    transfers from the General Revenue Fund authorized by this
12    amendatory Act of the 102nd General Assembly.
13        (5) This Act shall constitute an irrevocable and
14    continuing appropriation from the Income Tax Refund Fund
15    for the purposes purpose of (i) paying refunds upon the
16    order of the Director in accordance with the provisions of
17    this Section and (ii) paying one-time rebate payments
18    under Sections 208.5 and 212.1.
19    (e) Deposits into the Education Assistance Fund and the
20Income Tax Surcharge Local Government Distributive Fund. On
21July 1, 1991, and thereafter, of the amounts collected
22pursuant to subsections (a) and (b) of Section 201 of this Act,
23minus deposits into the Income Tax Refund Fund, the Department
24shall deposit 7.3% into the Education Assistance Fund in the
25State Treasury. Beginning July 1, 1991, and continuing through
26January 31, 1993, of the amounts collected pursuant to

 

 

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1subsections (a) and (b) of Section 201 of the Illinois Income
2Tax Act, minus deposits into the Income Tax Refund Fund, the
3Department shall deposit 3.0% into the Income Tax Surcharge
4Local Government Distributive Fund in the State Treasury.
5Beginning February 1, 1993 and continuing through June 30,
61993, of the amounts collected pursuant to subsections (a) and
7(b) of Section 201 of the Illinois Income Tax Act, minus
8deposits into the Income Tax Refund Fund, the Department shall
9deposit 4.4% into the Income Tax Surcharge Local Government
10Distributive Fund in the State Treasury. Beginning July 1,
111993, and continuing through June 30, 1994, of the amounts
12collected under subsections (a) and (b) of Section 201 of this
13Act, minus deposits into the Income Tax Refund Fund, the
14Department shall deposit 1.475% into the Income Tax Surcharge
15Local Government Distributive Fund in the State Treasury.
16    (f) Deposits into the Fund for the Advancement of
17Education. Beginning February 1, 2015, the Department shall
18deposit the following portions of the revenue realized from
19the tax imposed upon individuals, trusts, and estates by
20subsections (a) and (b) of Section 201 of this Act, minus
21deposits into the Income Tax Refund Fund, into the Fund for the
22Advancement of Education:
23        (1) beginning February 1, 2015, and prior to February
24    1, 2025, 1/30; and
25        (2) beginning February 1, 2025, 1/26.
26    If the rate of tax imposed by subsection (a) and (b) of

 

 

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1Section 201 is reduced pursuant to Section 201.5 of this Act,
2the Department shall not make the deposits required by this
3subsection (f) on or after the effective date of the
4reduction.
5    (g) Deposits into the Commitment to Human Services Fund.
6Beginning February 1, 2015, the Department shall deposit the
7following portions of the revenue realized from the tax
8imposed upon individuals, trusts, and estates by subsections
9(a) and (b) of Section 201 of this Act, minus deposits into the
10Income Tax Refund Fund, into the Commitment to Human Services
11Fund:
12        (1) beginning February 1, 2015, and prior to February
13    1, 2025, 1/30; and
14        (2) beginning February 1, 2025, 1/26.
15    If the rate of tax imposed by subsection (a) and (b) of
16Section 201 is reduced pursuant to Section 201.5 of this Act,
17the Department shall not make the deposits required by this
18subsection (g) on or after the effective date of the
19reduction.
20    (h) Deposits into the Tax Compliance and Administration
21Fund. Beginning on the first day of the first calendar month to
22occur on or after August 26, 2014 (the effective date of Public
23Act 98-1098), each month the Department shall pay into the Tax
24Compliance and Administration Fund, to be used, subject to
25appropriation, to fund additional auditors and compliance
26personnel at the Department, an amount equal to 1/12 of 5% of

 

 

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1the cash receipts collected during the preceding fiscal year
2by the Audit Bureau of the Department from the tax imposed by
3subsections (a), (b), (c), and (d) of Section 201 of this Act,
4net of deposits into the Income Tax Refund Fund made from those
5cash receipts.
6(Source: P.A. 101-8, see Section 99 for effective date;
7101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-636, eff.
86-10-20; 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-658,
9eff. 8-27-21; revised 10-19-21.)
 
10
ARTICLE 45. MOTOR FUEL

 
11    Section 45-3. The State Finance Act is amended by changing
12Section 6z-108 as follows:
 
13    (30 ILCS 105/6z-108)
14    Sec. 6z-108. Transportation Renewal Fund.
15    (a) The Transportation Renewal Fund is created as a
16special fund in the State treasury and shall receive Motor
17Fuel Tax revenues as directed by Sections 2a and Section 8b of
18the Motor Fuel Tax Law.
19    (b) Money in the Transportation Renewal Fund shall be used
20exclusively for transportation-related purposes as described
21in Section 11 of Article IX of the Illinois Constitution of
221970.
23(Source: P.A. 101-30, eff. 6-28-19.)
 

 

 

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1    Section 45-5. The Motor Fuel Tax Law is amended by
2changing Sections 2, 8a, and 17 as follows:
 
3    (35 ILCS 505/2)  (from Ch. 120, par. 418)
4    Sec. 2. A tax is imposed on the privilege of operating
5motor vehicles upon the public highways and recreational-type
6watercraft upon the waters of this State.
7    (a) Prior to August 1, 1989, the tax is imposed at the rate
8of 13 cents per gallon on all motor fuel used in motor vehicles
9operating on the public highways and recreational type
10watercraft operating upon the waters of this State. Beginning
11on August 1, 1989 and until January 1, 1990, the rate of the
12tax imposed in this paragraph shall be 16 cents per gallon.
13Beginning January 1, 1990 and until July 1, 2019, the rate of
14tax imposed in this paragraph, including the tax on compressed
15natural gas, shall be 19 cents per gallon. Beginning July 1,
162019 and until July 1, 2020, the rate of tax imposed in this
17paragraph shall be 38 cents per gallon. Beginning July 1, 2020
18and until July 1, 2021, the rate of tax imposed in this
19paragraph shall be 38.7 cents per gallon. Beginning July 1,
202021 and until January 1, 2023, the rate of tax imposed in this
21paragraph shall be 39.2 cents per gallon. On January 1, 2023,
22the rate of tax imposed in this paragraph shall be increased by
23an amount equal to the percentage increase, if any, in the
24Consumer Price Index for All Urban Consumers for all items

 

 

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1published by the United States Department of Labor for the 12
2months ending in September of 2022. On July 1, 2023, and on
3July 1 of each subsequent year, the rate of tax imposed in this
4paragraph shall be and increased on July 1 of each subsequent
5year by an amount equal to the percentage increase, if any, in
6the Consumer Price Index for All Urban Consumers for all items
7published by the United States Department of Labor for the 12
8months ending in March of the year in which the increase takes
9place each year. The rate shall be rounded to the nearest
10one-tenth of one cent.
11    (a-5) Beginning on July 1, 2022 and through December 31,
122022, each retailer of motor fuel shall cause the following
13notice to be posted in a prominently visible place on each
14retail dispensing device that is used to dispense motor fuel
15in the State of Illinois: "As of July 1, 2022, the State of
16Illinois has suspended the inflation adjustment to the motor
17fuel tax through December 31, 2022. The price on this pump
18should reflect the suspension of the tax increase." The notice
19shall be printed in bold print on a sign that is no smaller
20than 4 inches by 8 inches. The sign shall be clearly visible to
21customers. Any retailer who fails to post or maintain a
22required sign through December 31, 2022 is guilty of a petty
23offense for which the fine shall be $500 per day per each
24retail premises where a violation occurs.
25    (b) Until July 1, 2019, the tax on the privilege of
26operating motor vehicles which use diesel fuel, liquefied

 

 

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1natural gas, or propane shall be the rate according to
2paragraph (a) plus an additional 2 1/2 cents per gallon.
3Beginning July 1, 2019, the tax on the privilege of operating
4motor vehicles which use diesel fuel, liquefied natural gas,
5or propane shall be the rate according to subsection (a) plus
6an additional 7.5 cents per gallon. "Diesel fuel" is defined
7as any product intended for use or offered for sale as a fuel
8for engines in which the fuel is injected into the combustion
9chamber and ignited by pressure without electric spark.
10    (c) A tax is imposed upon the privilege of engaging in the
11business of selling motor fuel as a retailer or reseller on all
12motor fuel used in motor vehicles operating on the public
13highways and recreational type watercraft operating upon the
14waters of this State: (1) at the rate of 3 cents per gallon on
15motor fuel owned or possessed by such retailer or reseller at
1612:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents
17per gallon on motor fuel owned or possessed by such retailer or
18reseller at 12:01 A.M. on January 1, 1990.
19    Retailers and resellers who are subject to this additional
20tax shall be required to inventory such motor fuel and pay this
21additional tax in a manner prescribed by the Department of
22Revenue.
23    The tax imposed in this paragraph (c) shall be in addition
24to all other taxes imposed by the State of Illinois or any unit
25of local government in this State.
26    (d) Except as provided in Section 2a, the collection of a

 

 

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1tax based on gallonage of gasoline used for the propulsion of
2any aircraft is prohibited on and after October 1, 1979, and
3the collection of a tax based on gallonage of special fuel used
4for the propulsion of any aircraft is prohibited on and after
5December 1, 2019.
6    (e) The collection of a tax, based on gallonage of all
7products commonly or commercially known or sold as 1-K
8kerosene, regardless of its classification or uses, is
9prohibited (i) on and after July 1, 1992 until December 31,
101999, except when the 1-K kerosene is either: (1) delivered
11into bulk storage facilities of a bulk user, or (2) delivered
12directly into the fuel supply tanks of motor vehicles and (ii)
13on and after January 1, 2000. Beginning on January 1, 2000, the
14collection of a tax, based on gallonage of all products
15commonly or commercially known or sold as 1-K kerosene,
16regardless of its classification or uses, is prohibited except
17when the 1-K kerosene is delivered directly into a storage
18tank that is located at a facility that has withdrawal
19facilities that are readily accessible to and are capable of
20dispensing 1-K kerosene into the fuel supply tanks of motor
21vehicles. For purposes of this subsection (e), a facility is
22considered to have withdrawal facilities that are not "readily
23accessible to and capable of dispensing 1-K kerosene into the
24fuel supply tanks of motor vehicles" only if the 1-K kerosene
25is delivered from: (i) a dispenser hose that is short enough so
26that it will not reach the fuel supply tank of a motor vehicle

 

 

SB0157 Enrolled- 149 -LRB102 10128 HLH 16591 b

1or (ii) a dispenser that is enclosed by a fence or other
2physical barrier so that a vehicle cannot pull alongside the
3dispenser to permit fueling.
4    Any person who sells or uses 1-K kerosene for use in motor
5vehicles upon which the tax imposed by this Law has not been
6paid shall be liable for any tax due on the sales or use of 1-K
7kerosene.
8(Source: P.A. 100-9, eff. 7-1-17; 101-10, eff. 6-5-19; 101-32,
9eff. 6-28-19; 101-604, eff. 12-13-19.)
 
10    (35 ILCS 505/8a)  (from Ch. 120, par. 424a)
11    Sec. 8a. Deposit of proceeds. Until July 1, 2022 and
12beginning again on July 1, 2023, all All money received by the
13Department under Section 2a of this Act, except money received
14from taxes on aviation fuel sold or used on or after December
151, 2019 and through December 31, 2020, shall be deposited in
16the Underground Storage Tank Fund created by Section 57.11 of
17the Environmental Protection Act, as now or hereafter amended.
18All money received by the Department under Section 2a of this
19Act for aviation fuel sold or used on or after December 1,
202019, shall be deposited into the State Aviation Program Fund.
21This exception for aviation fuel only applies for so long as
22the revenue use requirements of 49 U.S.C. 47107(b) and 49
23U.S.C. 47133 are binding on the State. For purposes of this
24Section, "aviation fuel" means jet fuel and aviation gasoline.
25Beginning on July 1, 2022 and through June 30, 2023, all money

 

 

SB0157 Enrolled- 150 -LRB102 10128 HLH 16591 b

1received by the Department under Section 2a shall be deposited
2in the Transportation Renewal Fund.
3(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
 
4    (35 ILCS 505/17)  (from Ch. 120, par. 433)
5    Sec. 17. It is the purpose of Sections 2 and 13a of this
6Act to impose a tax upon the privilege of operating each motor
7vehicle as defined in this Act upon the public highways and the
8waters of this State, such tax to be based upon the consumption
9of motor fuel in such motor vehicle, so far as the same may be
10done, under the Constitution and statutes of the United
11States, and the Constitution of the State of Illinois. It is
12the purpose of Section 2a of this Act to impose a tax upon the
13privilege of importing or receiving in this State fuel for
14sale or use, such tax to be used to fund the Underground
15Storage Tank Fund or the Transportation Renewal Fund. If any
16of the provisions of this Act include transactions which are
17not taxable or are in any other respect unconstitutional, it
18is the intent of the General Assembly that, so far as possible,
19the remaining provisions of the Act be given effect.
20(Source: P.A. 86-125.)
 
21    Section 45-10. The Environmental Impact Fee Law is amended
22by changing Section 320 as follows:
 
23    (415 ILCS 125/320)

 

 

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1    (Section scheduled to be repealed on January 1, 2025)
2    Sec. 320. Deposit of fee receipts. Except as otherwise
3provided in this paragraph, all money received by the
4Department under this Law shall be deposited in the
5Underground Storage Tank Fund created by Section 57.11 of the
6Environmental Protection Act. All money received for aviation
7fuel by the Department under this Law on or after December 1,
82019 and ending with returns due on January 20, 2021, shall be
9immediately paid over by the Department to the State Aviation
10Program Fund. The Department shall only pay such moneys into
11the State Aviation Program Fund under this Act for so long as
12the revenue use requirements of 49 U.S.C. 47107(b) and 49
13U.S.C. 47133 are binding on the State. For purposes of this
14Section, "aviation fuel" means jet fuel and aviation gasoline.
15Beginning July 1, 2022 and through June 30, 2023, all money
16received by the Department under this Law shall be deposited
17into the Transportation Renewal Fund.
18(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
 
19
ARTICLE 50. ELECTRIC VEHICLES

 
20    Section 50-5. The Reimagining Electric Vehicles in
21Illinois Act is amended by changing Sections 10 and 20 as
22follows:
 
23    (20 ILCS 686/10)

 

 

SB0157 Enrolled- 152 -LRB102 10128 HLH 16591 b

1    Sec. 10. Definitions. As used in this Act:
2    "Advanced battery" means a battery that consists of a
3battery cell that can be integrated into a module, pack, or
4system to be used in energy storage applications, including a
5battery used in an electric vehicle or the electric grid.
6    "Advanced battery component" means a component of an
7advanced battery, including materials, enhancements,
8enclosures, anodes, cathodes, electrolytes, cells, and other
9associated technologies that comprise an advanced battery.
10    "Agreement" means the agreement between a taxpayer and the
11Department under the provisions of Section 45 of this Act.
12    "Applicant" means a taxpayer that (i) operates a business
13in Illinois or is planning to locate a business within the
14State of Illinois and (ii) is engaged in interstate or
15intrastate commerce for the purpose of manufacturing electric
16vehicles, electric vehicle component parts, or electric
17vehicle power supply equipment. "Applicant" does not include a
18taxpayer who closes or substantially reduces by more than 50%
19operations at one location in the State and relocates
20substantially the same operation to another location in the
21State. This does not prohibit a Taxpayer from expanding its
22operations at another location in the State. This also does
23not prohibit a Taxpayer from moving its operations from one
24location in the State to another location in the State for the
25purpose of expanding the operation, provided that the
26Department determines that expansion cannot reasonably be

 

 

SB0157 Enrolled- 153 -LRB102 10128 HLH 16591 b

1accommodated within the municipality or county in which the
2business is located, or, in the case of a business located in
3an incorporated area of the county, within the county in which
4the business is located, after conferring with the chief
5elected official of the municipality or county and taking into
6consideration any evidence offered by the municipality or
7county regarding the ability to accommodate expansion within
8the municipality or county.
9    "Battery raw materials" means the raw and processed form
10of a mineral, metal, chemical, or other material used in an
11advanced battery component.
12    "Battery raw materials refining service provider" means a
13business that operates a facility that filters, sifts, and
14treats battery raw materials for use in an advanced battery.
15    "Battery recycling and reuse manufacturer" means a
16manufacturer that is primarily engaged in the recovery,
17retrieval, processing, recycling, or recirculating of battery
18raw materials for new use in electric vehicle batteries.
19    "Capital improvements" means the purchase, renovation,
20rehabilitation, or construction of permanent tangible land,
21buildings, structures, equipment, and furnishings in an
22approved project sited in Illinois and expenditures for goods
23or services that are normally capitalized, including
24organizational costs and research and development costs
25incurred in Illinois. For land, buildings, structures, and
26equipment that are leased, the lease must equal or exceed the

 

 

SB0157 Enrolled- 154 -LRB102 10128 HLH 16591 b

1term of the agreement, and the cost of the property shall be
2determined from the present value, using the corporate
3interest rate prevailing at the time of the application, of
4the lease payments.
5    "Credit" means either a "REV Illinois Credit" or a "REV
6Construction Jobs Credit" agreed to between the Department and
7applicant under this Act.
8    "Department" means the Department of Commerce and Economic
9Opportunity.
10    "Director" means the Director of Commerce and Economic
11Opportunity.
12    "Electric vehicle" means a vehicle that is exclusively
13powered by and refueled by electricity, including electricity
14generated through a hydrogen fuel cells or solar technology
15must be plugged in to charge or utilize a pre-charged battery,
16and is permitted to operate on public roadways. "Electric
17vehicle" does not include hybrid electric vehicles, electric
18bicycles, or and extended-range electric vehicles that are
19also equipped with conventional fueled propulsion or auxiliary
20engines.
21    "Electric vehicle manufacturer" means a new or existing
22manufacturer that is primarily focused on reequipping,
23expanding, or establishing a manufacturing facility in
24Illinois that produces electric vehicles as defined in this
25Section.
26    "Electric vehicle component parts manufacturer" means a

 

 

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1new or existing manufacturer that is primarily focused on
2reequipping, expanding, or establishing a manufacturing
3facility in Illinois that produces advanced battery components
4or key components that directly support the electric functions
5of electric vehicles, as defined by this Section.
6    "Electric vehicle power supply equipment" means the
7equipment used specifically for the purpose of delivering
8electricity to an electric vehicle, including hydrogen fuel
9cells or solar refueling infrastructure.
10    "Electric vehicle power supply manufacturer" means a new
11or existing manufacturer that is focused on reequipping,
12expanding, or establishing a manufacturing facility in
13Illinois that produces electric vehicle power supply equipment
14used for the purpose of delivering electricity to an electric
15vehicle, including hydrogen fuel cell or solar refueling
16infrastructure.
17    "Energy Transition Area" means a county with less than
18100,000 people or a municipality that contains one or more of
19the following:
20        (1) a fossil fuel plant that was retired from service
21    or has significant reduced service within 6 years before
22    the time of the application or will be retired or have
23    service significantly reduced within 6 years following the
24    time of the application; or
25        (2) a coal mine that was closed or had operations
26    significantly reduced within 6 years before the time of

 

 

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1    the application or is anticipated to be closed or have
2    operations significantly reduced within 6 years following
3    the time of the application.
4    "Full-time employee" means an individual who is employed
5for consideration for at least 35 hours each week or who
6renders any other standard of service generally accepted by
7industry custom or practice as full-time employment. An
8individual for whom a W-2 is issued by a Professional Employer
9Organization (PEO) is a full-time employee if employed in the
10service of the applicant for consideration for at least 35
11hours each week.
12    "Incremental income tax" means the total amount withheld
13during the taxable year from the compensation of new employees
14and, if applicable, retained employees under Article 7 of the
15Illinois Income Tax Act arising from employment at a project
16that is the subject of an agreement.
17    "Institution of higher education" or "institution" means
18any accredited public or private university, college,
19community college, business, technical, or vocational school,
20or other accredited educational institution offering degrees
21and instruction beyond the secondary school level.
22    "Minority person" means a minority person as defined in
23the Business Enterprise for Minorities, Women, and Persons
24with Disabilities Act.
25    "New employee" means a newly-hired full-time employee
26employed to work at the project site and whose work is directly

 

 

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1related to the project.
2    "Noncompliance date" means, in the case of a taxpayer that
3is not complying with the requirements of the agreement or the
4provisions of this Act, the day following the last date upon
5which the taxpayer was in compliance with the requirements of
6the agreement and the provisions of this Act, as determined by
7the Director, pursuant to Section 70.
8    "Pass-through entity" means an entity that is exempt from
9the tax under subsection (b) or (c) of Section 205 of the
10Illinois Income Tax Act.
11    "Placed in service" means the state or condition of
12readiness, availability for a specifically assigned function,
13and the facility is constructed and ready to conduct its
14facility operations to manufacture goods.
15    "Professional employer organization" (PEO) means an
16employee leasing company, as defined in Section 206.1 of the
17Illinois Unemployment Insurance Act.
18    "Program" means the Reimagining Electric Vehicles in
19Illinois Program (the REV Illinois Program) established in
20this Act.
21    "Project" or "REV Illinois Project" means a for-profit
22economic development activity for the manufacture of electric
23vehicles, electric vehicle component parts, or electric
24vehicle power supply equipment which is designated by the
25Department as a REV Illinois Project and is the subject of an
26agreement.

 

 

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1    "Recycling facility" means a location at which the
2taxpayer disposes of batteries and other component parts in
3manufacturing of electric vehicles, electric vehicle component
4parts, or electric vehicle power supply equipment.
5    "Related member" means a person that, with respect to the
6taxpayer during any portion of the taxable year, is any one of
7the following:
8        (1) An individual stockholder, if the stockholder and
9    the members of the stockholder's family (as defined in
10    Section 318 of the Internal Revenue Code) own directly,
11    indirectly, beneficially, or constructively, in the
12    aggregate, at least 50% of the value of the taxpayer's
13    outstanding stock.
14        (2) A partnership, estate, trust and any partner or
15    beneficiary, if the partnership, estate, or trust, and its
16    partners or beneficiaries own directly, indirectly,
17    beneficially, or constructively, in the aggregate, at
18    least 50% of the profits, capital, stock, or value of the
19    taxpayer.
20        (3) A corporation, and any party related to the
21    corporation in a manner that would require an attribution
22    of stock from the corporation under the attribution rules
23    of Section 318 of the Internal Revenue Code, if the
24    Taxpayer owns directly, indirectly, beneficially, or
25    constructively at least 50% of the value of the
26    corporation's outstanding stock.

 

 

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1        (4) A corporation and any party related to that
2    corporation in a manner that would require an attribution
3    of stock from the corporation to the party or from the
4    party to the corporation under the attribution rules of
5    Section 318 of the Internal Revenue Code, if the
6    corporation and all such related parties own in the
7    aggregate at least 50% of the profits, capital, stock, or
8    value of the taxpayer.
9        (5) A person to or from whom there is an attribution of
10    stock ownership in accordance with Section 1563(e) of the
11    Internal Revenue Code, except, for purposes of determining
12    whether a person is a related member under this paragraph,
13    20% shall be substituted for 5% wherever 5% appears in
14    Section 1563(e) of the Internal Revenue Code.
15    "Retained employee" means a full-time employee employed by
16the taxpayer prior to the term of the Agreement who continues
17to be employed during the term of the agreement whose job
18duties are directly and substantially related to the project.
19For purposes of this definition, "directly and substantially
20related to the project" means at least two-thirds of the
21employee's job duties must be directly related to the project
22and the employee must devote at least two-thirds of his or her
23time to the project. The term "retained employee" does not
24include any individual who has a direct or an indirect
25ownership interest of at least 5% in the profits, equity,
26capital, or value of the taxpayer or a child, grandchild,

 

 

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1parent, or spouse, other than a spouse who is legally
2separated from the individual, of any individual who has a
3direct or indirect ownership of at least 5% in the profits,
4equity, capital, or value of the taxpayer.
5    "REV Illinois credit" means a credit agreed to between the
6Department and the applicant under this Act that is based on
7the incremental income tax attributable to new employees and,
8if applicable, retained employees, and on training costs for
9such employees at the applicant's project.
10    "REV construction jobs credit" means a credit agreed to
11between the Department and the applicant under this Act that
12is based on the incremental income tax attributable to
13construction wages paid in connection with construction of the
14project facilities.
15    "Statewide baseline" means the total number of full-time
16employees of the applicant and any related member employed by
17such entities at the time of application for incentives under
18this Act.
19    "Taxpayer" means an individual, corporation, partnership,
20or other entity that has a legal obligation to pay Illinois
21income taxes and file an Illinois income tax return.
22    "Training costs" means costs incurred to upgrade the
23technological skills of full-time employees in Illinois and
24includes: curriculum development; training materials
25(including scrap product costs); trainee domestic travel
26expenses; instructor costs (including wages, fringe benefits,

 

 

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1tuition and domestic travel expenses); rent, purchase or lease
2of training equipment; and other usual and customary training
3costs. "Training costs" do not include costs associated with
4travel outside the United States (unless the Taxpayer receives
5prior written approval for the travel by the Director based on
6a showing of substantial need or other proof the training is
7not reasonably available within the United States), wages and
8fringe benefits of employees during periods of training, or
9administrative cost related to full-time employees of the
10taxpayer.
11    "Underserved area" means any geographic areas as defined
12in Section 5-5 of the Economic Development for a Growing
13Economy Tax Credit Act.
14(Source: P.A. 102-669, eff. 11-16-21.)
 
15    (20 ILCS 686/20)
16    Sec. 20. REV Illinois Program; project applications.
17    (a) The Reimagining Electric Vehicles in Illinois (REV
18Illinois) Program is hereby established and shall be
19administered by the Department. The Program will provide
20financial incentives to any one or more of the following: (1)
21eligible manufacturers of electric vehicles, electric vehicle
22component parts, and electric vehicle power supply equipment;
23(2) battery recycling and reuse manufacturers; or (3) battery
24raw materials refining service providers.
25    (b) Any taxpayer planning a project to be located in

 

 

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1Illinois may request consideration for designation of its
2project as a REV Illinois Project, by formal written letter of
3request or by formal application to the Department, in which
4the applicant states its intent to make at least a specified
5level of investment and intends to hire a specified number of
6full-time employees at a designated location in Illinois. As
7circumstances require, the Department shall require a formal
8application from an applicant and a formal letter of request
9for assistance.
10    (c) In order to qualify for credits under the REV Illinois
11Program, an Applicant must:
12        (1) for an electric vehicle manufacturer:
13            (A) make an investment of at least $1,500,000,000
14        in capital improvements at the project site;
15            (B) to be placed in service within the State
16        within a 60-month period after approval of the
17        application; and
18            (C) create at least 500 new full-time employee
19        jobs; or
20        (2) for an electric vehicle component parts
21    manufacturer:
22            (A) make an investment of at least $300,000,000 in
23        capital improvements at the project site;
24            (B) manufacture one or more parts that are
25        primarily used for electric vehicle manufacturing;
26            (C) to be placed in service within the State

 

 

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1        within a 60-month period after approval of the
2        application; and
3            (D) create at least 150 new full-time employee
4        jobs; or
5        (3) for an electric vehicle manufacturer, an electric
6    vehicle power supply equipment manufacturer Manufacturer,
7    an or electric vehicle component part manufacturer that
8    does not qualify quality under paragraph (2) above, a
9    battery recycling and reuse manufacturer, or a battery raw
10    materials refining service provider:
11            (A) make an investment of at least $20,000,000 in
12        capital improvements at the project site;
13            (B) for electric vehicle component part
14        manufacturers, manufacture one or more parts that are
15        primarily used for electric vehicle manufacturing;
16            (C) to be placed in service within the State
17        within a 48-month period after approval of the
18        application; and
19            (D) create at least 50 new full-time employee
20        jobs; or
21        (4) for an electric vehicle manufacturer or electric
22    vehicle component parts manufacturer with existing
23    operations within Illinois that intends to convert or
24    expand, in whole or in part, the existing facility from
25    traditional manufacturing to primarily electric vehicle
26    manufacturing, electric vehicle component parts

 

 

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1    manufacturing, or electric vehicle power supply equipment
2    manufacturing:
3            (A) make an investment of at least $100,000,000 in
4        capital improvements at the project site;
5            (B) to be placed in service within the State
6        within a 60-month period after approval of the
7        application; and
8            (C) create the lesser of 75 new full-time employee
9        jobs or new full-time employee jobs equivalent to 10%
10        of the Statewide baseline applicable to the taxpayer
11        and any related member at the time of application.
12    (d) For agreements entered into prior to the effective
13date of this amendatory Act of the 102nd General Assembly, for
14For any applicant creating the full-time employee jobs noted
15in subsection (c), those jobs must have a total compensation
16equal to or greater than 120% of the average wage paid to
17full-time employees in the county where the project is
18located, as determined by the U.S. Bureau of Labor Statistics.
19For agreements entered into on or after the effective date of
20this amendatory Act of the 102nd General Assembly, for any
21applicant creating the full-time employee jobs noted in
22subsection (c), those jobs must have a compensation equal to
23or greater than 120% of the average wage paid to full-time
24employees in a similar position within an occupational group
25in the county where the project is located, as determined by
26the U.S. Bureau of Labor Statistics.

 

 

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1    (e) For any applicant, within 24 months after being placed
2in service, it must certify to the Department that it is carbon
3neutral or has attained certification under one of more of the
4following green building standards:
5        (1) BREEAM for New Construction or BREEAM In-Use;
6        (2) ENERGY STAR;
7        (3) Envision;
8        (4) ISO 50001 - energy management;
9        (5) LEED for Building Design and Construction or LEED
10    for Building Operations and Maintenance;
11        (6) Green Globes for New Construction or Green Globes
12    for Existing Buildings; or
13        (7) UL 3223.
14    (f) Each applicant must outline its hiring plan and
15commitment to recruit and hire full-time employee positions at
16the project site. The hiring plan may include a partnership
17with an institution of higher education to provide
18internships, including, but not limited to, internships
19supported by the Clean Jobs Workforce Network Program, or
20full-time permanent employment for students at the project
21site. Additionally, the applicant may create or utilize
22participants from apprenticeship programs that are approved by
23and registered with the United States Department of Labor's
24Bureau of Apprenticeship and Training. The Applicant may apply
25for apprenticeship education expense credits in accordance
26with the provisions set forth in 14 Ill. Admin. Code 522. Each

 

 

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1applicant is required to report annually, on or before April
215, on the diversity of its workforce in accordance with
3Section 50 of this Act. For existing facilities of applicants
4under paragraph (3) of subsection (b) above, if the taxpayer
5expects a reduction in force due to its transition to
6manufacturing electric vehicle, electric vehicle component
7parts, or electric vehicle power supply equipment, the plan
8submitted under this Section must outline the taxpayer's plan
9to assist with retraining its workforce aligned with the
10taxpayer's adoption of new technologies and anticipated
11efforts to retrain employees through employment opportunities
12within the taxpayer's workforce.
13    (g) Each applicant must demonstrate a contractual or other
14relationship with a recycling facility, or demonstrate its own
15recycling capabilities, at the time of application and report
16annually a continuing contractual or other relationship with a
17recycling facility and the percentage of batteries used in
18electric vehicles recycled throughout the term of the
19agreement.
20    (h) A taxpayer may not enter into more than one agreement
21under this Act with respect to a single address or location for
22the same period of time. Also, a taxpayer may not enter into an
23agreement under this Act with respect to a single address or
24location for the same period of time for which the taxpayer
25currently holds an active agreement under the Economic
26Development for a Growing Economy Tax Credit Act. This

 

 

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1provision does not preclude the applicant from entering into
2an additional agreement after the expiration or voluntary
3termination of an earlier agreement under this Act or under
4the Economic Development for a Growing Economy Tax Credit Act
5to the extent that the taxpayer's application otherwise
6satisfies the terms and conditions of this Act and is approved
7by the Department. An applicant with an existing agreement
8under the Economic Development for a Growing Economy Tax
9Credit Act may submit an application for an agreement under
10this Act after it terminates any existing agreement under the
11Economic Development for a Growing Economy Tax Credit Act with
12respect to the same address or location.
13(Source: P.A. 102-669, eff. 11-16-21.)
 
14
ARTICLE 55. EARNED INCOME TAX CREDIT

 
15    Section 55-5. The Illinois Income Tax Act is amended by
16changing Section 212 as follows:
 
17    (35 ILCS 5/212)
18    Sec. 212. Earned income tax credit.
19    (a) With respect to the federal earned income tax credit
20allowed for the taxable year under Section 32 of the federal
21Internal Revenue Code, 26 U.S.C. 32, each individual taxpayer
22is entitled to a credit against the tax imposed by subsections
23(a) and (b) of Section 201 in an amount equal to (i) 5% of the

 

 

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1federal tax credit for each taxable year beginning on or after
2January 1, 2000 and ending prior to December 31, 2012, (ii)
37.5% of the federal tax credit for each taxable year beginning
4on or after January 1, 2012 and ending prior to December 31,
52013, (iii) 10% of the federal tax credit for each taxable year
6beginning on or after January 1, 2013 and beginning prior to
7January 1, 2017, (iv) 14% of the federal tax credit for each
8taxable year beginning on or after January 1, 2017 and
9beginning prior to January 1, 2018, and (v) 18% of the federal
10tax credit for each taxable year beginning on or after January
111, 2018 and beginning prior to January 1, 2023, and (vi) 20% of
12the federal tax credit for each taxable year beginning on or
13after January 1, 2023.
14    For a non-resident or part-year resident, the amount of
15the credit under this Section shall be in proportion to the
16amount of income attributable to this State.
17    (b) For taxable years beginning before January 1, 2003, in
18no event shall a credit under this Section reduce the
19taxpayer's liability to less than zero. For each taxable year
20beginning on or after January 1, 2003, if the amount of the
21credit exceeds the income tax liability for the applicable tax
22year, then the excess credit shall be refunded to the
23taxpayer. The amount of a refund shall not be included in the
24taxpayer's income or resources for the purposes of determining
25eligibility or benefit level in any means-tested benefit
26program administered by a governmental entity unless required

 

 

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1by federal law.
2    (b-5) For taxable years beginning on or after January 1,
32023, each individual taxpayer who has attained the age of 18
4during the taxable year but has not yet attained the age of 25
5is entitled to the credit under paragraph (a) based on the
6federal tax credit for which the taxpayer would have been
7eligible without regard to any age requirements that would
8otherwise apply to individuals without a qualifying child in
9Section 32(c)(1)(A)(ii) of the federal Internal Revenue Code.
10    (b-10) For taxable years beginning on or after January 1,
112023, each individual taxpayer who has attained the age of 65
12or older during the taxable year is entitled to the credit
13under paragraph (a) based on the federal tax credit for which
14the taxpayer would have been eligible without regard to any
15age requirements that would otherwise apply to individuals
16without a qualifying child in Section 32(c)(1)(A)(ii) of the
17federal Internal Revenue Code.
18    (b-15) For taxable years beginning on or after January 1,
192023, each individual taxpayer filing a return using an
20individual taxpayer identification number (ITIN) as prescribed
21under Section 6109 of the Internal Revenue Code, other than a
22Social Security number issued pursuant to Section 205(c)(2)(A)
23of the Social Security Act, is entitled to the credit under
24paragraph (a) based on the federal tax credit for which they
25would have been eligible without applying the restrictions
26regarding social security numbers in Section 32(m) of the

 

 

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1federal Internal Revenue Code.
2    (c) This Section is exempt from the provisions of Section
3250.
4(Source: P.A. 100-22, eff. 7-6-17.)
 
5
ARTICLE 60. GROCERIES

 
6    Section 60-5. The State Finance Act is amended by adding
7Section 5.971 as follows:
 
8    (30 ILCS 105/5.971 new)
9    Sec. 5.971. The Grocery Tax Replacement Fund. This Section
10is repealed January 1, 2024.
 
11    Section 60-10. The State Finance Act is amended by
12changing Sections 6z-17 and 6z-18 and by adding Section 6z-130
13as follows:
 
14    (30 ILCS 105/6z-17)  (from Ch. 127, par. 142z-17)
15    Sec. 6z-17. State and Local Sales Tax Reform Fund.
16    (a) After deducting the amount transferred to the Tax
17Compliance and Administration Fund under subsection (b), of
18the money paid into the State and Local Sales Tax Reform Fund:
19(i) subject to appropriation to the Department of Revenue,
20Municipalities having 1,000,000 or more inhabitants shall
21receive 20% and may expend such amount to fund and establish a

 

 

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1program for developing and coordinating public and private
2resources targeted to meet the affordable housing needs of
3low-income and very low-income households within such
4municipality, (ii) 10% shall be transferred into the Regional
5Transportation Authority Occupation and Use Tax Replacement
6Fund, a special fund in the State treasury which is hereby
7created, (iii) until July 1, 2013, subject to appropriation to
8the Department of Transportation, the Madison County Mass
9Transit District shall receive .6%, and beginning on July 1,
102013, subject to appropriation to the Department of Revenue,
110.6% shall be distributed each month out of the Fund to the
12Madison County Mass Transit District, (iv) the following
13amounts, plus any cumulative deficiency in such transfers for
14prior months, shall be transferred monthly into the Build
15Illinois Fund and credited to the Build Illinois Bond Account
16therein:
17Fiscal YearAmount
181990$2,700,000
1919911,850,000
2019922,750,000
2119932,950,000
22    From Fiscal Year 1994 through Fiscal Year 2025 the
23transfer shall total $3,150,000 monthly, plus any cumulative
24deficiency in such transfers for prior months, and (v) the
25remainder of the money paid into the State and Local Sales Tax
26Reform Fund shall be transferred into the Local Government

 

 

SB0157 Enrolled- 172 -LRB102 10128 HLH 16591 b

1Distributive Fund and, except for municipalities with
21,000,000 or more inhabitants which shall receive no portion
3of such remainder, shall be distributed, subject to
4appropriation, in the manner provided by Section 2 of "An Act
5in relation to State revenue sharing with local government
6entities", approved July 31, 1969, as now or hereafter
7amended. Municipalities with more than 50,000 inhabitants
8according to the 1980 U.S. Census and located within the Metro
9East Mass Transit District receiving funds pursuant to
10provision (v) of this paragraph may expend such amounts to
11fund and establish a program for developing and coordinating
12public and private resources targeted to meet the affordable
13housing needs of low-income and very low-income households
14within such municipality.
15    Moneys transferred from the Grocery Tax Replacement Fund
16to the State and Local Sales Tax Reform Fund under Section
176z-130 shall be treated under this Section in the same manner
18as if they had been remitted with the return on which they were
19reported.
20    (b) Beginning on the first day of the first calendar month
21to occur on or after the effective date of this amendatory Act
22of the 98th General Assembly, each month the Department of
23Revenue shall certify to the State Comptroller and the State
24Treasurer, and the State Comptroller shall order transferred
25and the State Treasurer shall transfer from the State and
26Local Sales Tax Reform Fund to the Tax Compliance and

 

 

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1Administration Fund, an amount equal to 1/12 of 5% of 20% of
2the cash receipts collected during the preceding fiscal year
3by the Audit Bureau of the Department of Revenue under the Use
4Tax Act, the Service Use Tax Act, the Service Occupation Tax
5Act, the Retailers' Occupation Tax Act, and associated local
6occupation and use taxes administered by the Department. The
7amount distributed under subsection (a) each month shall first
8be reduced by the amount transferred to the Tax Compliance and
9Administration Fund under this subsection (b). Moneys
10transferred to the Tax Compliance and Administration Fund
11under this subsection (b) shall be used, subject to
12appropriation, to fund additional auditors and compliance
13personnel at the Department of Revenue.
14(Source: P.A. 98-44, eff. 6-28-13; 98-1098, eff. 8-26-14.)
 
15    (30 ILCS 105/6z-18)  (from Ch. 127, par. 142z-18)
16    Sec. 6z-18. Local Government Tax Fund. A portion of the
17money paid into the Local Government Tax Fund from sales of
18tangible personal property taxed at the 1% rate under the
19Retailers' Occupation Tax Act and the Service Occupation Tax
20Act, which occurred in municipalities, shall be distributed to
21each municipality based upon the sales which occurred in that
22municipality. The remainder shall be distributed to each
23county based upon the sales which occurred in the
24unincorporated area of that county.
25    Moneys transferred from the Grocery Tax Replacement Fund

 

 

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1to the Local Government Tax Fund under Section 6z-130 shall be
2treated under this Section in the same manner as if they had
3been remitted with the return on which they were reported.
4    A portion of the money paid into the Local Government Tax
5Fund from the 6.25% general use tax rate on the selling price
6of tangible personal property which is purchased outside
7Illinois at retail from a retailer and which is titled or
8registered by any agency of this State's government shall be
9distributed to municipalities as provided in this paragraph.
10Each municipality shall receive the amount attributable to
11sales for which Illinois addresses for titling or registration
12purposes are given as being in such municipality. The
13remainder of the money paid into the Local Government Tax Fund
14from such sales shall be distributed to counties. Each county
15shall receive the amount attributable to sales for which
16Illinois addresses for titling or registration purposes are
17given as being located in the unincorporated area of such
18county.
19    A portion of the money paid into the Local Government Tax
20Fund from the 6.25% general rate (and, beginning July 1, 2000
21and through December 31, 2000, the 1.25% rate on motor fuel and
22gasohol, and beginning on August 6, 2010 through August 15,
232010, the 1.25% rate on sales tax holiday items) on sales
24subject to taxation under the Retailers' Occupation Tax Act
25and the Service Occupation Tax Act, which occurred in
26municipalities, shall be distributed to each municipality,

 

 

SB0157 Enrolled- 175 -LRB102 10128 HLH 16591 b

1based upon the sales which occurred in that municipality. The
2remainder shall be distributed to each county, based upon the
3sales which occurred in the unincorporated area of such
4county.
5    For the purpose of determining allocation to the local
6government unit, a retail sale by a producer of coal or other
7mineral mined in Illinois is a sale at retail at the place
8where the coal or other mineral mined in Illinois is extracted
9from the earth. This paragraph does not apply to coal or other
10mineral when it is delivered or shipped by the seller to the
11purchaser at a point outside Illinois so that the sale is
12exempt under the United States Constitution as a sale in
13interstate or foreign commerce.
14    Whenever the Department determines that a refund of money
15paid into the Local Government Tax Fund should be made to a
16claimant instead of issuing a credit memorandum, the
17Department shall notify the State Comptroller, who shall cause
18the order to be drawn for the amount specified, and to the
19person named, in such notification from the Department. Such
20refund shall be paid by the State Treasurer out of the Local
21Government Tax Fund.
22    As soon as possible after the first day of each month,
23beginning January 1, 2011, upon certification of the
24Department of Revenue, the Comptroller shall order
25transferred, and the Treasurer shall transfer, to the STAR
26Bonds Revenue Fund the local sales tax increment, as defined

 

 

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1in the Innovation Development and Economy Act, collected
2during the second preceding calendar month for sales within a
3STAR bond district and deposited into the Local Government Tax
4Fund, less 3% of that amount, which shall be transferred into
5the Tax Compliance and Administration Fund and shall be used
6by the Department, subject to appropriation, to cover the
7costs of the Department in administering the Innovation
8Development and Economy Act.
9    After the monthly transfer to the STAR Bonds Revenue Fund,
10on or before the 25th day of each calendar month, the
11Department shall prepare and certify to the Comptroller the
12disbursement of stated sums of money to named municipalities
13and counties, the municipalities and counties to be those
14entitled to distribution of taxes or penalties paid to the
15Department during the second preceding calendar month. The
16amount to be paid to each municipality or county shall be the
17amount (not including credit memoranda) collected during the
18second preceding calendar month by the Department and paid
19into the Local Government Tax Fund, plus an amount the
20Department determines is necessary to offset any amounts which
21were erroneously paid to a different taxing body, and not
22including an amount equal to the amount of refunds made during
23the second preceding calendar month by the Department, and not
24including any amount which the Department determines is
25necessary to offset any amounts which are payable to a
26different taxing body but were erroneously paid to the

 

 

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1municipality or county, and not including any amounts that are
2transferred to the STAR Bonds Revenue Fund. Within 10 days
3after receipt, by the Comptroller, of the disbursement
4certification to the municipalities and counties, provided for
5in this Section to be given to the Comptroller by the
6Department, the Comptroller shall cause the orders to be drawn
7for the respective amounts in accordance with the directions
8contained in such certification.
9    When certifying the amount of monthly disbursement to a
10municipality or county under this Section, the Department
11shall increase or decrease that amount by an amount necessary
12to offset any misallocation of previous disbursements. The
13offset amount shall be the amount erroneously disbursed within
14the 6 months preceding the time a misallocation is discovered.
15    The provisions directing the distributions from the
16special fund in the State Treasury provided for in this
17Section shall constitute an irrevocable and continuing
18appropriation of all amounts as provided herein. The State
19Treasurer and State Comptroller are hereby authorized to make
20distributions as provided in this Section.
21    In construing any development, redevelopment, annexation,
22preannexation or other lawful agreement in effect prior to
23September 1, 1990, which describes or refers to receipts from
24a county or municipal retailers' occupation tax, use tax or
25service occupation tax which now cannot be imposed, such
26description or reference shall be deemed to include the

 

 

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1replacement revenue for such abolished taxes, distributed from
2the Local Government Tax Fund.
3    As soon as possible after the effective date of this
4amendatory Act of the 98th General Assembly, the State
5Comptroller shall order and the State Treasurer shall transfer
6$6,600,000 from the Local Government Tax Fund to the Illinois
7State Medical Disciplinary Fund.
8(Source: P.A. 100-1171, eff. 1-4-19.)
 
9    (30 ILCS 105/6z-130 new)
10    Sec. 6z-130. Grocery Tax Replacement Fund.
11    (a) The Grocery Tax Replacement Fund is hereby created as
12a special fund in the State Treasury.
13    (b) On the effective date of this amendatory Act of the
14102nd General Assembly, or as soon thereafter as practical,
15but no later than June 30, 2022, the State Comptroller shall
16direct and the State Treasurer shall transfer the sum of
17$325,000,000 from the General Revenue Fund to the Grocery Tax
18Replacement Fund.
19    (c) On July 1, 2022, or as soon thereafter as practical,
20the State Comptroller shall direct and the State Treasurer
21shall transfer the sum of $75,000,000 from the General Revenue
22Fund to the Grocery Tax Replacement Fund.
23    (d) In addition to any other transfers that may be
24provided for by law, beginning on the effective date of this
25amendatory Act of the 102nd General Assembly and until

 

 

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1November 30, 2023, the Director may certify additional
2transfer amounts needed beyond the amounts specified in
3subsections (b) and (c) to cover any additional amounts needed
4to equal the net revenue that, but for the reduction of the
5rate to 0% in the Use Tax Act, the Service Use Tax Act, the
6Service Occupation Tax Act, and the Retailers' Occupation Tax
7Act under this amendatory Act of the 102nd General Assembly,
8would have been realized if the items that are subject to the
9rate reduction had been taxed at the 1% rate during the period
10of the reduction. The State Comptroller shall direct and the
11State Treasurer shall transfer the amounts certified by the
12Director from the General Revenue Fund to the Grocery Tax
13Replacement Fund.
14    (e) In addition to any other transfers that may be
15provided for by law, beginning on July 1, 2022 and until
16December 1, 2023, at the direction of the Department of
17Revenue, the State Comptroller shall direct and the State
18Treasurer shall transfer from the Grocery Tax Replacement Fund
19to the State and Local Sales Tax Reform Fund any amounts needed
20to equal the net revenue that, but for the reduction of the
21rate to 0% in the Use Tax Act and Service Use Tax Act under
22this amendatory Act of the 102nd General Assembly, would have
23been deposited into the State and Local Sales Tax Reform Fund
24if the items that are subject to the rate reduction had been
25taxed at the 1% rate during the period of the reduction.
26    (f) In addition to any other transfers that may be

 

 

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1provided for by law, beginning on July 1, 2022 and until
2December 1, 2023, at the direction of the Department of
3Revenue, the State Comptroller shall direct and the State
4Treasurer shall transfer from the Grocery Tax Replacement Fund
5to the Local Government Tax Fund any amounts needed to equal
6the net revenue that, but for the reduction of the rate to 0%
7in the Service Occupation Tax Act and the Retailers'
8Occupation Tax Act under this amendatory Act of the 102nd
9General Assembly, would have been deposited into the Local
10Government Tax Fund if the items that are subject to the rate
11reduction had been taxed at the 1% rate during the period of
12the reduction.
13    (g) The State Comptroller shall direct and the State
14Treasurer shall transfer the remaining balance in the Grocery
15Tax Replacement Fund to the General Revenue Fund on December
161, 2023, or as soon thereafter as practical. Upon completion
17of the transfer, the Grocery Tax Replacement Fund is
18dissolved.
19    (h) This Section is repealed on January 1, 2024.
 
20    Section 60-15. The Use Tax Act is amended by changing
21Sections 3-10, 3a, and 9 as follows:
 
22    (35 ILCS 105/3-10)
23    Sec. 3-10. Rate of tax. Unless otherwise provided in this
24Section, the tax imposed by this Act is at the rate of 6.25% of

 

 

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1either the selling price or the fair market value, if any, of
2the tangible personal property. In all cases where property
3functionally used or consumed is the same as the property that
4was purchased at retail, then the tax is imposed on the selling
5price of the property. In all cases where property
6functionally used or consumed is a by-product or waste product
7that has been refined, manufactured, or produced from property
8purchased at retail, then the tax is imposed on the lower of
9the fair market value, if any, of the specific property so used
10in this State or on the selling price of the property purchased
11at retail. For purposes of this Section "fair market value"
12means the price at which property would change hands between a
13willing buyer and a willing seller, neither being under any
14compulsion to buy or sell and both having reasonable knowledge
15of the relevant facts. The fair market value shall be
16established by Illinois sales by the taxpayer of the same
17property as that functionally used or consumed, or if there
18are no such sales by the taxpayer, then comparable sales or
19purchases of property of like kind and character in Illinois.
20    Beginning on July 1, 2000 and through December 31, 2000,
21with respect to motor fuel, as defined in Section 1.1 of the
22Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
23the Use Tax Act, the tax is imposed at the rate of 1.25%.
24    Beginning on August 6, 2010 through August 15, 2010, with
25respect to sales tax holiday items as defined in Section 3-6 of
26this Act, the tax is imposed at the rate of 1.25%.

 

 

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1    With respect to gasohol, the tax imposed by this Act
2applies to (i) 70% of the proceeds of sales made on or after
3January 1, 1990, and before July 1, 2003, (ii) 80% of the
4proceeds of sales made on or after July 1, 2003 and on or
5before July 1, 2017, and (iii) 100% of the proceeds of sales
6made thereafter. If, at any time, however, the tax under this
7Act on sales of gasohol is imposed at the rate of 1.25%, then
8the tax imposed by this Act applies to 100% of the proceeds of
9sales of gasohol made during that time.
10    With respect to majority blended ethanol fuel, the tax
11imposed by this Act does not apply to the proceeds of sales
12made on or after July 1, 2003 and on or before December 31,
132023 but applies to 100% of the proceeds of sales made
14thereafter.
15    With respect to biodiesel blends with no less than 1% and
16no more than 10% biodiesel, the tax imposed by this Act applies
17to (i) 80% of the proceeds of sales made on or after July 1,
182003 and on or before December 31, 2018 and (ii) 100% of the
19proceeds of sales made thereafter. If, at any time, however,
20the tax under this Act on sales of biodiesel blends with no
21less than 1% and no more than 10% biodiesel is imposed at the
22rate of 1.25%, then the tax imposed by this Act applies to 100%
23of the proceeds of sales of biodiesel blends with no less than
241% and no more than 10% biodiesel made during that time.
25    With respect to 100% biodiesel and biodiesel blends with
26more than 10% but no more than 99% biodiesel, the tax imposed

 

 

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1by this Act does not apply to the proceeds of sales made on or
2after July 1, 2003 and on or before December 31, 2023 but
3applies to 100% of the proceeds of sales made thereafter.
4    Until July 1, 2022 and beginning again on July 1, 2023,
5with With respect to food for human consumption that is to be
6consumed off the premises where it is sold (other than
7alcoholic beverages, food consisting of or infused with adult
8use cannabis, soft drinks, and food that has been prepared for
9immediate consumption), the tax is imposed at the rate of 1%.
10Beginning on July 1, 2022 and until July 1, 2023, with respect
11to food for human consumption that is to be consumed off the
12premises where it is sold (other than alcoholic beverages,
13food consisting of or infused with adult use cannabis, soft
14drinks, and food that has been prepared for immediate
15consumption), the tax is imposed at the rate of 0%.
16    With respect to and prescription and nonprescription
17medicines, drugs, medical appliances, products classified as
18Class III medical devices by the United States Food and Drug
19Administration that are used for cancer treatment pursuant to
20a prescription, as well as any accessories and components
21related to those devices, modifications to a motor vehicle for
22the purpose of rendering it usable by a person with a
23disability, and insulin, blood sugar testing materials,
24syringes, and needles used by human diabetics, the tax is
25imposed at the rate of 1%. For the purposes of this Section,
26until September 1, 2009: the term "soft drinks" means any

 

 

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1complete, finished, ready-to-use, non-alcoholic drink, whether
2carbonated or not, including but not limited to soda water,
3cola, fruit juice, vegetable juice, carbonated water, and all
4other preparations commonly known as soft drinks of whatever
5kind or description that are contained in any closed or sealed
6bottle, can, carton, or container, regardless of size; but
7"soft drinks" does not include coffee, tea, non-carbonated
8water, infant formula, milk or milk products as defined in the
9Grade A Pasteurized Milk and Milk Products Act, or drinks
10containing 50% or more natural fruit or vegetable juice.
11    Notwithstanding any other provisions of this Act,
12beginning September 1, 2009, "soft drinks" means non-alcoholic
13beverages that contain natural or artificial sweeteners. "Soft
14drinks" do not include beverages that contain milk or milk
15products, soy, rice or similar milk substitutes, or greater
16than 50% of vegetable or fruit juice by volume.
17    Until August 1, 2009, and notwithstanding any other
18provisions of this Act, "food for human consumption that is to
19be consumed off the premises where it is sold" includes all
20food sold through a vending machine, except soft drinks and
21food products that are dispensed hot from a vending machine,
22regardless of the location of the vending machine. Beginning
23August 1, 2009, and notwithstanding any other provisions of
24this Act, "food for human consumption that is to be consumed
25off the premises where it is sold" includes all food sold
26through a vending machine, except soft drinks, candy, and food

 

 

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1products that are dispensed hot from a vending machine,
2regardless of the location of the vending machine.
3    Notwithstanding any other provisions of this Act,
4beginning September 1, 2009, "food for human consumption that
5is to be consumed off the premises where it is sold" does not
6include candy. For purposes of this Section, "candy" means a
7preparation of sugar, honey, or other natural or artificial
8sweeteners in combination with chocolate, fruits, nuts or
9other ingredients or flavorings in the form of bars, drops, or
10pieces. "Candy" does not include any preparation that contains
11flour or requires refrigeration.
12    Notwithstanding any other provisions of this Act,
13beginning September 1, 2009, "nonprescription medicines and
14drugs" does not include grooming and hygiene products. For
15purposes of this Section, "grooming and hygiene products"
16includes, but is not limited to, soaps and cleaning solutions,
17shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
18lotions and screens, unless those products are available by
19prescription only, regardless of whether the products meet the
20definition of "over-the-counter-drugs". For the purposes of
21this paragraph, "over-the-counter-drug" means a drug for human
22use that contains a label that identifies the product as a drug
23as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
24label includes:
25        (A) A "Drug Facts" panel; or
26        (B) A statement of the "active ingredient(s)" with a

 

 

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1    list of those ingredients contained in the compound,
2    substance or preparation.
3    Beginning on the effective date of this amendatory Act of
4the 98th General Assembly, "prescription and nonprescription
5medicines and drugs" includes medical cannabis purchased from
6a registered dispensing organization under the Compassionate
7Use of Medical Cannabis Program Act.
8    As used in this Section, "adult use cannabis" means
9cannabis subject to tax under the Cannabis Cultivation
10Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
11and does not include cannabis subject to tax under the
12Compassionate Use of Medical Cannabis Program Act.
13    If the property that is purchased at retail from a
14retailer is acquired outside Illinois and used outside
15Illinois before being brought to Illinois for use here and is
16taxable under this Act, the "selling price" on which the tax is
17computed shall be reduced by an amount that represents a
18reasonable allowance for depreciation for the period of prior
19out-of-state use.
20(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
21102-4, eff. 4-27-21.)
 
22    (35 ILCS 105/3a)  (from Ch. 120, par. 439.3a)
23    Sec. 3a. The tax imposed by the Act shall when collected be
24stated as a distinct item separate and apart from the selling
25price of the tangible personal property. However, where it is

 

 

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1not possible to state the sales tax separately in situations
2such as sales from vending machines or sales of liquor by the
3drink the Department may by rule exempt such sales from this
4requirement so long as purchasers are notified by a sign that
5the tax is included in the selling price.
6    In addition, retailers who sell items that would have been
7taxed at the 1% rate but for the 0% rate imposed under this
8amendatory Act of the 102nd General Assembly shall, to the
9extent feasible, include the following statement on any cash
10register tape, receipt, invoice, or sales ticket issued to
11customers: "From July 1, 2022 through July 1, 2023, the State
12of Illinois sales tax on groceries is 0%.". If it is not
13feasible for the retailer to include the statement on any cash
14register tape, receipt, invoice, or sales ticket issued to
15customers, then the retailer shall post the statement on a
16sign that is clearly visible to customers. The sign shall be no
17smaller than 4 inches by 8 inches.
18(Source: P.A. 84-229.)
 
19    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
20    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
21and trailers that are required to be registered with an agency
22of this State, each retailer required or authorized to collect
23the tax imposed by this Act shall pay to the Department the
24amount of such tax (except as otherwise provided) at the time
25when he is required to file his return for the period during

 

 

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1which such tax was collected, less a discount of 2.1% prior to
2January 1, 1990, and 1.75% on and after January 1, 1990, or $5
3per calendar year, whichever is greater, which is allowed to
4reimburse the retailer for expenses incurred in collecting the
5tax, keeping records, preparing and filing returns, remitting
6the tax and supplying data to the Department on request. The
7discount under this Section is not allowed for the 1.25%
8portion of taxes paid on aviation fuel that is subject to the
9revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1047133. When determining the discount allowed under this
11Section, retailers shall include the amount of tax that would
12have been due at the 1% rate but for the 0% rate imposed under
13this amendatory Act of the 102nd General Assembly. In the case
14of retailers who report and pay the tax on a transaction by
15transaction basis, as provided in this Section, such discount
16shall be taken with each such tax remittance instead of when
17such retailer files his periodic return. The discount allowed
18under this Section is allowed only for returns that are filed
19in the manner required by this Act. The Department may
20disallow the discount for retailers whose certificate of
21registration is revoked at the time the return is filed, but
22only if the Department's decision to revoke the certificate of
23registration has become final. A retailer need not remit that
24part of any tax collected by him to the extent that he is
25required to remit and does remit the tax imposed by the
26Retailers' Occupation Tax Act, with respect to the sale of the

 

 

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1same property.
2    Where such tangible personal property is sold under a
3conditional sales contract, or under any other form of sale
4wherein the payment of the principal sum, or a part thereof, is
5extended beyond the close of the period for which the return is
6filed, the retailer, in collecting the tax (except as to motor
7vehicles, watercraft, aircraft, and trailers that are required
8to be registered with an agency of this State), may collect for
9each tax return period, only the tax applicable to that part of
10the selling price actually received during such tax return
11period.
12    Except as provided in this Section, on or before the
13twentieth day of each calendar month, such retailer shall file
14a return for the preceding calendar month. Such return shall
15be filed on forms prescribed by the Department and shall
16furnish such information as the Department may reasonably
17require. The return shall include the gross receipts on food
18for human consumption that is to be consumed off the premises
19where it is sold (other than alcoholic beverages, food
20consisting of or infused with adult use cannabis, soft drinks,
21and food that has been prepared for immediate consumption)
22which were received during the preceding calendar month,
23quarter, or year, as appropriate, and upon which tax would
24have been due but for the 0% rate imposed under this amendatory
25Act of the 102nd General Assembly. The return shall also
26include the amount of tax that would have been due on food for

 

 

SB0157 Enrolled- 190 -LRB102 10128 HLH 16591 b

1human consumption that is to be consumed off the premises
2where it is sold (other than alcoholic beverages, food
3consisting of or infused with adult use cannabis, soft drinks,
4and food that has been prepared for immediate consumption) but
5for the 0% rate imposed under this amendatory Act of the 102nd
6General Assembly.
7    On and after January 1, 2018, except for returns for motor
8vehicles, watercraft, aircraft, and trailers that are required
9to be registered with an agency of this State, with respect to
10retailers whose annual gross receipts average $20,000 or more,
11all returns required to be filed pursuant to this Act shall be
12filed electronically. Retailers who demonstrate that they do
13not have access to the Internet or demonstrate hardship in
14filing electronically may petition the Department to waive the
15electronic filing requirement.
16    The Department may require returns to be filed on a
17quarterly basis. If so required, a return for each calendar
18quarter shall be filed on or before the twentieth day of the
19calendar month following the end of such calendar quarter. The
20taxpayer shall also file a return with the Department for each
21of the first two months of each calendar quarter, on or before
22the twentieth day of the following calendar month, stating:
23        1. The name of the seller;
24        2. The address of the principal place of business from
25    which he engages in the business of selling tangible
26    personal property at retail in this State;

 

 

SB0157 Enrolled- 191 -LRB102 10128 HLH 16591 b

1        3. The total amount of taxable receipts received by
2    him during the preceding calendar month from sales of
3    tangible personal property by him during such preceding
4    calendar month, including receipts from charge and time
5    sales, but less all deductions allowed by law;
6        4. The amount of credit provided in Section 2d of this
7    Act;
8        5. The amount of tax due;
9        5-5. The signature of the taxpayer; and
10        6. Such other reasonable information as the Department
11    may require.
12    Each retailer required or authorized to collect the tax
13imposed by this Act on aviation fuel sold at retail in this
14State during the preceding calendar month shall, instead of
15reporting and paying tax on aviation fuel as otherwise
16required by this Section, report and pay such tax on a separate
17aviation fuel tax return. The requirements related to the
18return shall be as otherwise provided in this Section.
19Notwithstanding any other provisions of this Act to the
20contrary, retailers collecting tax on aviation fuel shall file
21all aviation fuel tax returns and shall make all aviation fuel
22tax payments by electronic means in the manner and form
23required by the Department. For purposes of this Section,
24"aviation fuel" means jet fuel and aviation gasoline.
25    If a taxpayer fails to sign a return within 30 days after
26the proper notice and demand for signature by the Department,

 

 

SB0157 Enrolled- 192 -LRB102 10128 HLH 16591 b

1the return shall be considered valid and any amount shown to be
2due on the return shall be deemed assessed.
3    Notwithstanding any other provision of this Act to the
4contrary, retailers subject to tax on cannabis shall file all
5cannabis tax returns and shall make all cannabis tax payments
6by electronic means in the manner and form required by the
7Department.
8    Beginning October 1, 1993, a taxpayer who has an average
9monthly tax liability of $150,000 or more shall make all
10payments required by rules of the Department by electronic
11funds transfer. Beginning October 1, 1994, a taxpayer who has
12an average monthly tax liability of $100,000 or more shall
13make all payments required by rules of the Department by
14electronic funds transfer. Beginning October 1, 1995, a
15taxpayer who has an average monthly tax liability of $50,000
16or more shall make all payments required by rules of the
17Department by electronic funds transfer. Beginning October 1,
182000, a taxpayer who has an annual tax liability of $200,000 or
19more shall make all payments required by rules of the
20Department by electronic funds transfer. The term "annual tax
21liability" shall be the sum of the taxpayer's liabilities
22under this Act, and under all other State and local occupation
23and use tax laws administered by the Department, for the
24immediately preceding calendar year. The term "average monthly
25tax liability" means the sum of the taxpayer's liabilities
26under this Act, and under all other State and local occupation

 

 

SB0157 Enrolled- 193 -LRB102 10128 HLH 16591 b

1and use tax laws administered by the Department, for the
2immediately preceding calendar year divided by 12. Beginning
3on October 1, 2002, a taxpayer who has a tax liability in the
4amount set forth in subsection (b) of Section 2505-210 of the
5Department of Revenue Law shall make all payments required by
6rules of the Department by electronic funds transfer.
7    Before August 1 of each year beginning in 1993, the
8Department shall notify all taxpayers required to make
9payments by electronic funds transfer. All taxpayers required
10to make payments by electronic funds transfer shall make those
11payments for a minimum of one year beginning on October 1.
12    Any taxpayer not required to make payments by electronic
13funds transfer may make payments by electronic funds transfer
14with the permission of the Department.
15    All taxpayers required to make payment by electronic funds
16transfer and any taxpayers authorized to voluntarily make
17payments by electronic funds transfer shall make those
18payments in the manner authorized by the Department.
19    The Department shall adopt such rules as are necessary to
20effectuate a program of electronic funds transfer and the
21requirements of this Section.
22    Before October 1, 2000, if the taxpayer's average monthly
23tax liability to the Department under this Act, the Retailers'
24Occupation Tax Act, the Service Occupation Tax Act, the
25Service Use Tax Act was $10,000 or more during the preceding 4
26complete calendar quarters, he shall file a return with the

 

 

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1Department each month by the 20th day of the month next
2following the month during which such tax liability is
3incurred and shall make payments to the Department on or
4before the 7th, 15th, 22nd and last day of the month during
5which such liability is incurred. On and after October 1,
62000, if the taxpayer's average monthly tax liability to the
7Department under this Act, the Retailers' Occupation Tax Act,
8the Service Occupation Tax Act, and the Service Use Tax Act was
9$20,000 or more during the preceding 4 complete calendar
10quarters, he shall file a return with the Department each
11month by the 20th day of the month next following the month
12during which such tax liability is incurred and shall make
13payment to the Department on or before the 7th, 15th, 22nd and
14last day of the month during which such liability is incurred.
15If the month during which such tax liability is incurred began
16prior to January 1, 1985, each payment shall be in an amount
17equal to 1/4 of the taxpayer's actual liability for the month
18or an amount set by the Department not to exceed 1/4 of the
19average monthly liability of the taxpayer to the Department
20for the preceding 4 complete calendar quarters (excluding the
21month of highest liability and the month of lowest liability
22in such 4 quarter period). If the month during which such tax
23liability is incurred begins on or after January 1, 1985, and
24prior to January 1, 1987, each payment shall be in an amount
25equal to 22.5% of the taxpayer's actual liability for the
26month or 27.5% of the taxpayer's liability for the same

 

 

SB0157 Enrolled- 195 -LRB102 10128 HLH 16591 b

1calendar month of the preceding year. If the month during
2which such tax liability is incurred begins on or after
3January 1, 1987, and prior to January 1, 1988, each payment
4shall be in an amount equal to 22.5% of the taxpayer's actual
5liability for the month or 26.25% of the taxpayer's liability
6for the same calendar month of the preceding year. If the month
7during which such tax liability is incurred begins on or after
8January 1, 1988, and prior to January 1, 1989, or begins on or
9after January 1, 1996, each payment shall be in an amount equal
10to 22.5% of the taxpayer's actual liability for the month or
1125% of the taxpayer's liability for the same calendar month of
12the preceding year. If the month during which such tax
13liability is incurred begins on or after January 1, 1989, and
14prior to January 1, 1996, each payment shall be in an amount
15equal to 22.5% of the taxpayer's actual liability for the
16month or 25% of the taxpayer's liability for the same calendar
17month of the preceding year or 100% of the taxpayer's actual
18liability for the quarter monthly reporting period. The amount
19of such quarter monthly payments shall be credited against the
20final tax liability of the taxpayer's return for that month.
21Before October 1, 2000, once applicable, the requirement of
22the making of quarter monthly payments to the Department shall
23continue until such taxpayer's average monthly liability to
24the Department during the preceding 4 complete calendar
25quarters (excluding the month of highest liability and the
26month of lowest liability) is less than $9,000, or until such

 

 

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1taxpayer's average monthly liability to the Department as
2computed for each calendar quarter of the 4 preceding complete
3calendar quarter period is less than $10,000. However, if a
4taxpayer can show the Department that a substantial change in
5the taxpayer's business has occurred which causes the taxpayer
6to anticipate that his average monthly tax liability for the
7reasonably foreseeable future will fall below the $10,000
8threshold stated above, then such taxpayer may petition the
9Department for change in such taxpayer's reporting status. On
10and after October 1, 2000, once applicable, the requirement of
11the making of quarter monthly payments to the Department shall
12continue until such taxpayer's average monthly liability to
13the Department during the preceding 4 complete calendar
14quarters (excluding the month of highest liability and the
15month of lowest liability) is less than $19,000 or until such
16taxpayer's average monthly liability to the Department as
17computed for each calendar quarter of the 4 preceding complete
18calendar quarter period is less than $20,000. However, if a
19taxpayer can show the Department that a substantial change in
20the taxpayer's business has occurred which causes the taxpayer
21to anticipate that his average monthly tax liability for the
22reasonably foreseeable future will fall below the $20,000
23threshold stated above, then such taxpayer may petition the
24Department for a change in such taxpayer's reporting status.
25The Department shall change such taxpayer's reporting status
26unless it finds that such change is seasonal in nature and not

 

 

SB0157 Enrolled- 197 -LRB102 10128 HLH 16591 b

1likely to be long term. Quarter monthly payment status shall
2be determined under this paragraph as if the rate reduction to
30% in this amendatory Act of the 102nd General Assembly on food
4for human consumption that is to be consumed off the premises
5where it is sold (other than alcoholic beverages, food
6consisting of or infused with adult use cannabis, soft drinks,
7and food that has been prepared for immediate consumption) had
8not occurred. For quarter monthly payments due under this
9paragraph on or after July 1, 2023 and through June 30, 2024,
10"25% of the taxpayer's liability for the same calendar month
11of the preceding year" shall be determined as if the rate
12reduction to 0% in this amendatory Act of the 102nd General
13Assembly had not occurred. If any such quarter monthly payment
14is not paid at the time or in the amount required by this
15Section, then the taxpayer shall be liable for penalties and
16interest on the difference between the minimum amount due and
17the amount of such quarter monthly payment actually and timely
18paid, except insofar as the taxpayer has previously made
19payments for that month to the Department in excess of the
20minimum payments previously due as provided in this Section.
21The Department shall make reasonable rules and regulations to
22govern the quarter monthly payment amount and quarter monthly
23payment dates for taxpayers who file on other than a calendar
24monthly basis.
25    If any such payment provided for in this Section exceeds
26the taxpayer's liabilities under this Act, the Retailers'

 

 

SB0157 Enrolled- 198 -LRB102 10128 HLH 16591 b

1Occupation Tax Act, the Service Occupation Tax Act and the
2Service Use Tax Act, as shown by an original monthly return,
3the Department shall issue to the taxpayer a credit memorandum
4no later than 30 days after the date of payment, which
5memorandum may be submitted by the taxpayer to the Department
6in payment of tax liability subsequently to be remitted by the
7taxpayer to the Department or be assigned by the taxpayer to a
8similar taxpayer under this Act, the Retailers' Occupation Tax
9Act, the Service Occupation Tax Act or the Service Use Tax Act,
10in accordance with reasonable rules and regulations to be
11prescribed by the Department, except that if such excess
12payment is shown on an original monthly return and is made
13after December 31, 1986, no credit memorandum shall be issued,
14unless requested by the taxpayer. If no such request is made,
15the taxpayer may credit such excess payment against tax
16liability subsequently to be remitted by the taxpayer to the
17Department under this Act, the Retailers' Occupation Tax Act,
18the Service Occupation Tax Act or the Service Use Tax Act, in
19accordance with reasonable rules and regulations prescribed by
20the Department. If the Department subsequently determines that
21all or any part of the credit taken was not actually due to the
22taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
23be reduced by 2.1% or 1.75% of the difference between the
24credit taken and that actually due, and the taxpayer shall be
25liable for penalties and interest on such difference.
26    If the retailer is otherwise required to file a monthly

 

 

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1return and if the retailer's average monthly tax liability to
2the Department does not exceed $200, the Department may
3authorize his returns to be filed on a quarter annual basis,
4with the return for January, February, and March of a given
5year being due by April 20 of such year; with the return for
6April, May and June of a given year being due by July 20 of
7such year; with the return for July, August and September of a
8given year being due by October 20 of such year, and with the
9return for October, November and December of a given year
10being due by January 20 of the following year.
11    If the retailer is otherwise required to file a monthly or
12quarterly return and if the retailer's average monthly tax
13liability to the Department does not exceed $50, the
14Department may authorize his returns to be filed on an annual
15basis, with the return for a given year being due by January 20
16of the following year.
17    Such quarter annual and annual returns, as to form and
18substance, shall be subject to the same requirements as
19monthly returns.
20    Notwithstanding any other provision in this Act concerning
21the time within which a retailer may file his return, in the
22case of any retailer who ceases to engage in a kind of business
23which makes him responsible for filing returns under this Act,
24such retailer shall file a final return under this Act with the
25Department not more than one month after discontinuing such
26business.

 

 

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1    In addition, with respect to motor vehicles, watercraft,
2aircraft, and trailers that are required to be registered with
3an agency of this State, except as otherwise provided in this
4Section, every retailer selling this kind of tangible personal
5property shall file, with the Department, upon a form to be
6prescribed and supplied by the Department, a separate return
7for each such item of tangible personal property which the
8retailer sells, except that if, in the same transaction, (i) a
9retailer of aircraft, watercraft, motor vehicles or trailers
10transfers more than one aircraft, watercraft, motor vehicle or
11trailer to another aircraft, watercraft, motor vehicle or
12trailer retailer for the purpose of resale or (ii) a retailer
13of aircraft, watercraft, motor vehicles, or trailers transfers
14more than one aircraft, watercraft, motor vehicle, or trailer
15to a purchaser for use as a qualifying rolling stock as
16provided in Section 3-55 of this Act, then that seller may
17report the transfer of all the aircraft, watercraft, motor
18vehicles or trailers involved in that transaction to the
19Department on the same uniform invoice-transaction reporting
20return form. For purposes of this Section, "watercraft" means
21a Class 2, Class 3, or Class 4 watercraft as defined in Section
223-2 of the Boat Registration and Safety Act, a personal
23watercraft, or any boat equipped with an inboard motor.
24    In addition, with respect to motor vehicles, watercraft,
25aircraft, and trailers that are required to be registered with
26an agency of this State, every person who is engaged in the

 

 

SB0157 Enrolled- 201 -LRB102 10128 HLH 16591 b

1business of leasing or renting such items and who, in
2connection with such business, sells any such item to a
3retailer for the purpose of resale is, notwithstanding any
4other provision of this Section to the contrary, authorized to
5meet the return-filing requirement of this Act by reporting
6the transfer of all the aircraft, watercraft, motor vehicles,
7or trailers transferred for resale during a month to the
8Department on the same uniform invoice-transaction reporting
9return form on or before the 20th of the month following the
10month in which the transfer takes place. Notwithstanding any
11other provision of this Act to the contrary, all returns filed
12under this paragraph must be filed by electronic means in the
13manner and form as required by the Department.
14    The transaction reporting return in the case of motor
15vehicles or trailers that are required to be registered with
16an agency of this State, shall be the same document as the
17Uniform Invoice referred to in Section 5-402 of the Illinois
18Vehicle Code and must show the name and address of the seller;
19the name and address of the purchaser; the amount of the
20selling price including the amount allowed by the retailer for
21traded-in property, if any; the amount allowed by the retailer
22for the traded-in tangible personal property, if any, to the
23extent to which Section 2 of this Act allows an exemption for
24the value of traded-in property; the balance payable after
25deducting such trade-in allowance from the total selling
26price; the amount of tax due from the retailer with respect to

 

 

SB0157 Enrolled- 202 -LRB102 10128 HLH 16591 b

1such transaction; the amount of tax collected from the
2purchaser by the retailer on such transaction (or satisfactory
3evidence that such tax is not due in that particular instance,
4if that is claimed to be the fact); the place and date of the
5sale; a sufficient identification of the property sold; such
6other information as is required in Section 5-402 of the
7Illinois Vehicle Code, and such other information as the
8Department may reasonably require.
9    The transaction reporting return in the case of watercraft
10and aircraft must show the name and address of the seller; the
11name and address of the purchaser; the amount of the selling
12price including the amount allowed by the retailer for
13traded-in property, if any; the amount allowed by the retailer
14for the traded-in tangible personal property, if any, to the
15extent to which Section 2 of this Act allows an exemption for
16the value of traded-in property; the balance payable after
17deducting such trade-in allowance from the total selling
18price; the amount of tax due from the retailer with respect to
19such transaction; the amount of tax collected from the
20purchaser by the retailer on such transaction (or satisfactory
21evidence that such tax is not due in that particular instance,
22if that is claimed to be the fact); the place and date of the
23sale, a sufficient identification of the property sold, and
24such other information as the Department may reasonably
25require.
26    Such transaction reporting return shall be filed not later

 

 

SB0157 Enrolled- 203 -LRB102 10128 HLH 16591 b

1than 20 days after the date of delivery of the item that is
2being sold, but may be filed by the retailer at any time sooner
3than that if he chooses to do so. The transaction reporting
4return and tax remittance or proof of exemption from the tax
5that is imposed by this Act may be transmitted to the
6Department by way of the State agency with which, or State
7officer with whom, the tangible personal property must be
8titled or registered (if titling or registration is required)
9if the Department and such agency or State officer determine
10that this procedure will expedite the processing of
11applications for title or registration.
12    With each such transaction reporting return, the retailer
13shall remit the proper amount of tax due (or shall submit
14satisfactory evidence that the sale is not taxable if that is
15the case), to the Department or its agents, whereupon the
16Department shall issue, in the purchaser's name, a tax receipt
17(or a certificate of exemption if the Department is satisfied
18that the particular sale is tax exempt) which such purchaser
19may submit to the agency with which, or State officer with
20whom, he must title or register the tangible personal property
21that is involved (if titling or registration is required) in
22support of such purchaser's application for an Illinois
23certificate or other evidence of title or registration to such
24tangible personal property.
25    No retailer's failure or refusal to remit tax under this
26Act precludes a user, who has paid the proper tax to the

 

 

SB0157 Enrolled- 204 -LRB102 10128 HLH 16591 b

1retailer, from obtaining his certificate of title or other
2evidence of title or registration (if titling or registration
3is required) upon satisfying the Department that such user has
4paid the proper tax (if tax is due) to the retailer. The
5Department shall adopt appropriate rules to carry out the
6mandate of this paragraph.
7    If the user who would otherwise pay tax to the retailer
8wants the transaction reporting return filed and the payment
9of tax or proof of exemption made to the Department before the
10retailer is willing to take these actions and such user has not
11paid the tax to the retailer, such user may certify to the fact
12of such delay by the retailer, and may (upon the Department
13being satisfied of the truth of such certification) transmit
14the information required by the transaction reporting return
15and the remittance for tax or proof of exemption directly to
16the Department and obtain his tax receipt or exemption
17determination, in which event the transaction reporting return
18and tax remittance (if a tax payment was required) shall be
19credited by the Department to the proper retailer's account
20with the Department, but without the 2.1% or 1.75% discount
21provided for in this Section being allowed. When the user pays
22the tax directly to the Department, he shall pay the tax in the
23same amount and in the same form in which it would be remitted
24if the tax had been remitted to the Department by the retailer.
25    Where a retailer collects the tax with respect to the
26selling price of tangible personal property which he sells and

 

 

SB0157 Enrolled- 205 -LRB102 10128 HLH 16591 b

1the purchaser thereafter returns such tangible personal
2property and the retailer refunds the selling price thereof to
3the purchaser, such retailer shall also refund, to the
4purchaser, the tax so collected from the purchaser. When
5filing his return for the period in which he refunds such tax
6to the purchaser, the retailer may deduct the amount of the tax
7so refunded by him to the purchaser from any other use tax
8which such retailer may be required to pay or remit to the
9Department, as shown by such return, if the amount of the tax
10to be deducted was previously remitted to the Department by
11such retailer. If the retailer has not previously remitted the
12amount of such tax to the Department, he is entitled to no
13deduction under this Act upon refunding such tax to the
14purchaser.
15    Any retailer filing a return under this Section shall also
16include (for the purpose of paying tax thereon) the total tax
17covered by such return upon the selling price of tangible
18personal property purchased by him at retail from a retailer,
19but as to which the tax imposed by this Act was not collected
20from the retailer filing such return, and such retailer shall
21remit the amount of such tax to the Department when filing such
22return.
23    If experience indicates such action to be practicable, the
24Department may prescribe and furnish a combination or joint
25return which will enable retailers, who are required to file
26returns hereunder and also under the Retailers' Occupation Tax

 

 

SB0157 Enrolled- 206 -LRB102 10128 HLH 16591 b

1Act, to furnish all the return information required by both
2Acts on the one form.
3    Where the retailer has more than one business registered
4with the Department under separate registration under this
5Act, such retailer may not file each return that is due as a
6single return covering all such registered businesses, but
7shall file separate returns for each such registered business.
8    Beginning January 1, 1990, each month the Department shall
9pay into the State and Local Sales Tax Reform Fund, a special
10fund in the State Treasury which is hereby created, the net
11revenue realized for the preceding month from the 1% tax
12imposed under this Act.
13    Beginning January 1, 1990, each month the Department shall
14pay into the County and Mass Transit District Fund 4% of the
15net revenue realized for the preceding month from the 6.25%
16general rate on the selling price of tangible personal
17property which is purchased outside Illinois at retail from a
18retailer and which is titled or registered by an agency of this
19State's government.
20    Beginning January 1, 1990, each month the Department shall
21pay into the State and Local Sales Tax Reform Fund, a special
22fund in the State Treasury, 20% of the net revenue realized for
23the preceding month from the 6.25% general rate on the selling
24price of tangible personal property, other than (i) tangible
25personal property which is purchased outside Illinois at
26retail from a retailer and which is titled or registered by an

 

 

SB0157 Enrolled- 207 -LRB102 10128 HLH 16591 b

1agency of this State's government and (ii) aviation fuel sold
2on or after December 1, 2019. This exception for aviation fuel
3only applies for so long as the revenue use requirements of 49
4U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
5    For aviation fuel sold on or after December 1, 2019, each
6month the Department shall pay into the State Aviation Program
7Fund 20% of the net revenue realized for the preceding month
8from the 6.25% general rate on the selling price of aviation
9fuel, less an amount estimated by the Department to be
10required for refunds of the 20% portion of the tax on aviation
11fuel under this Act, which amount shall be deposited into the
12Aviation Fuel Sales Tax Refund Fund. The Department shall only
13pay moneys into the State Aviation Program Fund and the
14Aviation Fuels Sales Tax Refund Fund under this Act for so long
15as the revenue use requirements of 49 U.S.C. 47107(b) and 49
16U.S.C. 47133 are binding on the State.
17    Beginning August 1, 2000, each month the Department shall
18pay into the State and Local Sales Tax Reform Fund 100% of the
19net revenue realized for the preceding month from the 1.25%
20rate on the selling price of motor fuel and gasohol. Beginning
21September 1, 2010, each month the Department shall pay into
22the State and Local Sales Tax Reform Fund 100% of the net
23revenue realized for the preceding month from the 1.25% rate
24on the selling price of sales tax holiday items.
25    Beginning January 1, 1990, each month the Department shall
26pay into the Local Government Tax Fund 16% of the net revenue

 

 

SB0157 Enrolled- 208 -LRB102 10128 HLH 16591 b

1realized for the preceding month from the 6.25% general rate
2on the selling price of tangible personal property which is
3purchased outside Illinois at retail from a retailer and which
4is titled or registered by an agency of this State's
5government.
6    Beginning October 1, 2009, each month the Department shall
7pay into the Capital Projects Fund an amount that is equal to
8an amount estimated by the Department to represent 80% of the
9net revenue realized for the preceding month from the sale of
10candy, grooming and hygiene products, and soft drinks that had
11been taxed at a rate of 1% prior to September 1, 2009 but that
12are now taxed at 6.25%.
13    Beginning July 1, 2011, each month the Department shall
14pay into the Clean Air Act Permit Fund 80% of the net revenue
15realized for the preceding month from the 6.25% general rate
16on the selling price of sorbents used in Illinois in the
17process of sorbent injection as used to comply with the
18Environmental Protection Act or the federal Clean Air Act, but
19the total payment into the Clean Air Act Permit Fund under this
20Act and the Retailers' Occupation Tax Act shall not exceed
21$2,000,000 in any fiscal year.
22    Beginning July 1, 2013, each month the Department shall
23pay into the Underground Storage Tank Fund from the proceeds
24collected under this Act, the Service Use Tax Act, the Service
25Occupation Tax Act, and the Retailers' Occupation Tax Act an
26amount equal to the average monthly deficit in the Underground

 

 

SB0157 Enrolled- 209 -LRB102 10128 HLH 16591 b

1Storage Tank Fund during the prior year, as certified annually
2by the Illinois Environmental Protection Agency, but the total
3payment into the Underground Storage Tank Fund under this Act,
4the Service Use Tax Act, the Service Occupation Tax Act, and
5the Retailers' Occupation Tax Act shall not exceed $18,000,000
6in any State fiscal year. As used in this paragraph, the
7"average monthly deficit" shall be equal to the difference
8between the average monthly claims for payment by the fund and
9the average monthly revenues deposited into the fund,
10excluding payments made pursuant to this paragraph.
11    Beginning July 1, 2015, of the remainder of the moneys
12received by the Department under this Act, the Service Use Tax
13Act, the Service Occupation Tax Act, and the Retailers'
14Occupation Tax Act, each month the Department shall deposit
15$500,000 into the State Crime Laboratory Fund.
16    Of the remainder of the moneys received by the Department
17pursuant to this Act, (a) 1.75% thereof shall be paid into the
18Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
19and after July 1, 1989, 3.8% thereof shall be paid into the
20Build Illinois Fund; provided, however, that if in any fiscal
21year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
22may be, of the moneys received by the Department and required
23to be paid into the Build Illinois Fund pursuant to Section 3
24of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
25Act, Section 9 of the Service Use Tax Act, and Section 9 of the
26Service Occupation Tax Act, such Acts being hereinafter called

 

 

SB0157 Enrolled- 210 -LRB102 10128 HLH 16591 b

1the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
2may be, of moneys being hereinafter called the "Tax Act
3Amount", and (2) the amount transferred to the Build Illinois
4Fund from the State and Local Sales Tax Reform Fund shall be
5less than the Annual Specified Amount (as defined in Section 3
6of the Retailers' Occupation Tax Act), an amount equal to the
7difference shall be immediately paid into the Build Illinois
8Fund from other moneys received by the Department pursuant to
9the Tax Acts; and further provided, that if on the last
10business day of any month the sum of (1) the Tax Act Amount
11required to be deposited into the Build Illinois Bond Account
12in the Build Illinois Fund during such month and (2) the amount
13transferred during such month to the Build Illinois Fund from
14the State and Local Sales Tax Reform Fund shall have been less
15than 1/12 of the Annual Specified Amount, an amount equal to
16the difference shall be immediately paid into the Build
17Illinois Fund from other moneys received by the Department
18pursuant to the Tax Acts; and, further provided, that in no
19event shall the payments required under the preceding proviso
20result in aggregate payments into the Build Illinois Fund
21pursuant to this clause (b) for any fiscal year in excess of
22the greater of (i) the Tax Act Amount or (ii) the Annual
23Specified Amount for such fiscal year; and, further provided,
24that the amounts payable into the Build Illinois Fund under
25this clause (b) shall be payable only until such time as the
26aggregate amount on deposit under each trust indenture

 

 

SB0157 Enrolled- 211 -LRB102 10128 HLH 16591 b

1securing Bonds issued and outstanding pursuant to the Build
2Illinois Bond Act is sufficient, taking into account any
3future investment income, to fully provide, in accordance with
4such indenture, for the defeasance of or the payment of the
5principal of, premium, if any, and interest on the Bonds
6secured by such indenture and on any Bonds expected to be
7issued thereafter and all fees and costs payable with respect
8thereto, all as certified by the Director of the Bureau of the
9Budget (now Governor's Office of Management and Budget). If on
10the last business day of any month in which Bonds are
11outstanding pursuant to the Build Illinois Bond Act, the
12aggregate of the moneys deposited in the Build Illinois Bond
13Account in the Build Illinois Fund in such month shall be less
14than the amount required to be transferred in such month from
15the Build Illinois Bond Account to the Build Illinois Bond
16Retirement and Interest Fund pursuant to Section 13 of the
17Build Illinois Bond Act, an amount equal to such deficiency
18shall be immediately paid from other moneys received by the
19Department pursuant to the Tax Acts to the Build Illinois
20Fund; provided, however, that any amounts paid to the Build
21Illinois Fund in any fiscal year pursuant to this sentence
22shall be deemed to constitute payments pursuant to clause (b)
23of the preceding sentence and shall reduce the amount
24otherwise payable for such fiscal year pursuant to clause (b)
25of the preceding sentence. The moneys received by the
26Department pursuant to this Act and required to be deposited

 

 

SB0157 Enrolled- 212 -LRB102 10128 HLH 16591 b

1into the Build Illinois Fund are subject to the pledge, claim
2and charge set forth in Section 12 of the Build Illinois Bond
3Act.
4    Subject to payment of amounts into the Build Illinois Fund
5as provided in the preceding paragraph or in any amendment
6thereto hereafter enacted, the following specified monthly
7installment of the amount requested in the certificate of the
8Chairman of the Metropolitan Pier and Exposition Authority
9provided under Section 8.25f of the State Finance Act, but not
10in excess of the sums designated as "Total Deposit", shall be
11deposited in the aggregate from collections under Section 9 of
12the Use Tax Act, Section 9 of the Service Use Tax Act, Section
139 of the Service Occupation Tax Act, and Section 3 of the
14Retailers' Occupation Tax Act into the McCormick Place
15Expansion Project Fund in the specified fiscal years.
16Fiscal YearTotal Deposit
171993         $0
181994 53,000,000
191995 58,000,000
201996 61,000,000
211997 64,000,000
221998 68,000,000
231999 71,000,000
242000 75,000,000
252001 80,000,000
262002 93,000,000

 

 

SB0157 Enrolled- 213 -LRB102 10128 HLH 16591 b

12003 99,000,000
22004103,000,000
32005108,000,000
42006113,000,000
52007119,000,000
62008126,000,000
72009132,000,000
82010139,000,000
92011146,000,000
102012153,000,000
112013161,000,000
122014170,000,000
132015179,000,000
142016189,000,000
152017199,000,000
162018210,000,000
172019221,000,000
182020233,000,000
192021300,000,000
202022300,000,000
212023300,000,000
222024 300,000,000
232025 300,000,000
242026 300,000,000
252027 375,000,000
262028 375,000,000

 

 

SB0157 Enrolled- 214 -LRB102 10128 HLH 16591 b

12029 375,000,000
22030 375,000,000
32031 375,000,000
42032 375,000,000
52033 375,000,000
62034375,000,000
72035375,000,000
82036450,000,000
9and
10each fiscal year
11thereafter that bonds
12are outstanding under
13Section 13.2 of the
14Metropolitan Pier and
15Exposition Authority Act,
16but not after fiscal year 2060.
17    Beginning July 20, 1993 and in each month of each fiscal
18year thereafter, one-eighth of the amount requested in the
19certificate of the Chairman of the Metropolitan Pier and
20Exposition Authority for that fiscal year, less the amount
21deposited into the McCormick Place Expansion Project Fund by
22the State Treasurer in the respective month under subsection
23(g) of Section 13 of the Metropolitan Pier and Exposition
24Authority Act, plus cumulative deficiencies in the deposits
25required under this Section for previous months and years,
26shall be deposited into the McCormick Place Expansion Project

 

 

SB0157 Enrolled- 215 -LRB102 10128 HLH 16591 b

1Fund, until the full amount requested for the fiscal year, but
2not in excess of the amount specified above as "Total
3Deposit", has been deposited.
4    Subject to payment of amounts into the Capital Projects
5Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
6and the McCormick Place Expansion Project Fund pursuant to the
7preceding paragraphs or in any amendments thereto hereafter
8enacted, for aviation fuel sold on or after December 1, 2019,
9the Department shall each month deposit into the Aviation Fuel
10Sales Tax Refund Fund an amount estimated by the Department to
11be required for refunds of the 80% portion of the tax on
12aviation fuel under this Act. The Department shall only
13deposit moneys into the Aviation Fuel Sales Tax Refund Fund
14under this paragraph for so long as the revenue use
15requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
16binding on the State.
17    Subject to payment of amounts into the Build Illinois Fund
18and the McCormick Place Expansion Project Fund pursuant to the
19preceding paragraphs or in any amendments thereto hereafter
20enacted, beginning July 1, 1993 and ending on September 30,
212013, the Department shall each month pay into the Illinois
22Tax Increment Fund 0.27% of 80% of the net revenue realized for
23the preceding month from the 6.25% general rate on the selling
24price of tangible personal property.
25    Subject to payment of amounts into the Build Illinois Fund
26and the McCormick Place Expansion Project Fund pursuant to the

 

 

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1preceding paragraphs or in any amendments thereto hereafter
2enacted, beginning with the receipt of the first report of
3taxes paid by an eligible business and continuing for a
425-year period, the Department shall each month pay into the
5Energy Infrastructure Fund 80% of the net revenue realized
6from the 6.25% general rate on the selling price of
7Illinois-mined coal that was sold to an eligible business. For
8purposes of this paragraph, the term "eligible business" means
9a new electric generating facility certified pursuant to
10Section 605-332 of the Department of Commerce and Economic
11Opportunity Law of the Civil Administrative Code of Illinois.
12    Subject to payment of amounts into the Build Illinois
13Fund, the McCormick Place Expansion Project Fund, the Illinois
14Tax Increment Fund, and the Energy Infrastructure Fund
15pursuant to the preceding paragraphs or in any amendments to
16this Section hereafter enacted, beginning on the first day of
17the first calendar month to occur on or after August 26, 2014
18(the effective date of Public Act 98-1098), each month, from
19the collections made under Section 9 of the Use Tax Act,
20Section 9 of the Service Use Tax Act, Section 9 of the Service
21Occupation Tax Act, and Section 3 of the Retailers' Occupation
22Tax Act, the Department shall pay into the Tax Compliance and
23Administration Fund, to be used, subject to appropriation, to
24fund additional auditors and compliance personnel at the
25Department of Revenue, an amount equal to 1/12 of 5% of 80% of
26the cash receipts collected during the preceding fiscal year

 

 

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1by the Audit Bureau of the Department under the Use Tax Act,
2the Service Use Tax Act, the Service Occupation Tax Act, the
3Retailers' Occupation Tax Act, and associated local occupation
4and use taxes administered by the Department.
5    Subject to payments of amounts into the Build Illinois
6Fund, the McCormick Place Expansion Project Fund, the Illinois
7Tax Increment Fund, the Energy Infrastructure Fund, and the
8Tax Compliance and Administration Fund as provided in this
9Section, beginning on July 1, 2018 the Department shall pay
10each month into the Downstate Public Transportation Fund the
11moneys required to be so paid under Section 2-3 of the
12Downstate Public Transportation Act.
13    Subject to successful execution and delivery of a
14public-private agreement between the public agency and private
15entity and completion of the civic build, beginning on July 1,
162023, of the remainder of the moneys received by the