HB2518 EngrossedLRB103 28353 HLH 54733 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section
53-5 as follows:
 
6    (35 ILCS 105/3-5)
7    Sec. 3-5. Exemptions. Use of the following tangible
8personal property is exempt from the tax imposed by this Act:
9    (1) Personal property purchased from a corporation,
10society, association, foundation, institution, or
11organization, other than a limited liability company, that is
12organized and operated as a not-for-profit service enterprise
13for the benefit of persons 65 years of age or older if the
14personal property was not purchased by the enterprise for the
15purpose of resale by the enterprise.
16    (2) Personal property purchased by a not-for-profit
17Illinois county fair association for use in conducting,
18operating, or promoting the county fair.
19    (3) Personal property purchased by a not-for-profit arts
20or cultural organization that establishes, by proof required
21by the Department by rule, that it has received an exemption
22under Section 501(c)(3) of the Internal Revenue Code and that
23is organized and operated primarily for the presentation or

 

 

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1support of arts or cultural programming, activities, or
2services. These organizations include, but are not limited to,
3music and dramatic arts organizations such as symphony
4orchestras and theatrical groups, arts and cultural service
5organizations, local arts councils, visual arts organizations,
6and media arts organizations. On and after July 1, 2001 (the
7effective date of Public Act 92-35), however, an entity
8otherwise eligible for this exemption shall not make tax-free
9purchases unless it has an active identification number issued
10by the Department.
11    (4) Personal property purchased by a governmental body, by
12a corporation, society, association, foundation, or
13institution organized and operated exclusively for charitable,
14religious, or educational purposes, or by a not-for-profit
15corporation, society, association, foundation, institution, or
16organization that has no compensated officers or employees and
17that is organized and operated primarily for the recreation of
18persons 55 years of age or older. A limited liability company
19may qualify for the exemption under this paragraph only if the
20limited liability company is organized and operated
21exclusively for educational purposes. On and after July 1,
221987, however, no entity otherwise eligible for this exemption
23shall make tax-free purchases unless it has an active
24exemption identification number issued by the Department.
25    (5) Until July 1, 2003, a passenger car that is a
26replacement vehicle to the extent that the purchase price of

 

 

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1the car is subject to the Replacement Vehicle Tax.
2    (6) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new
5and used, and including that manufactured on special order,
6certified by the purchaser to be used primarily for graphic
7arts production, and including machinery and equipment
8purchased for lease. Equipment includes chemicals or chemicals
9acting as catalysts but only if the chemicals or chemicals
10acting as catalysts effect a direct and immediate change upon
11a graphic arts product. Beginning on July 1, 2017, graphic
12arts machinery and equipment is included in the manufacturing
13and assembling machinery and equipment exemption under
14paragraph (18).
15    (7) Farm chemicals.
16    (8) Legal tender, currency, medallions, or gold or silver
17coinage issued by the State of Illinois, the government of the
18United States of America, or the government of any foreign
19country, and bullion.
20    (9) Personal property purchased from a teacher-sponsored
21student organization affiliated with an elementary or
22secondary school located in Illinois.
23    (10) A motor vehicle that is used for automobile renting,
24as defined in the Automobile Renting Occupation and Use Tax
25Act.
26    (11) Farm machinery and equipment, both new and used,

 

 

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

 

 

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1    Farm machinery and equipment also includes computers,
2sensors, software, and related equipment used primarily in the
3computer-assisted operation of production agriculture
4facilities, equipment, and activities such as, but not limited
5to, the collection, monitoring, and correlation of animal and
6crop data for the purpose of formulating animal diets and
7agricultural chemicals. This item (11) is exempt from the
8provisions of Section 3-90.
9    (12) Until June 30, 2013, fuel and petroleum products sold
10to or used by an air common carrier, certified by the carrier
11to be used for consumption, shipment, or storage in the
12conduct of its business as an air common carrier, for a flight
13destined for or returning from a location or locations outside
14the United States without regard to previous or subsequent
15domestic stopovers.
16    Beginning July 1, 2013, fuel and petroleum products sold
17to or used by an air carrier, certified by the carrier to be
18used for consumption, shipment, or storage in the conduct of
19its business as an air common carrier, for a flight that (i) is
20engaged in foreign trade or is engaged in trade between the
21United States and any of its possessions and (ii) transports
22at least one individual or package for hire from the city of
23origination to the city of final destination on the same
24aircraft, without regard to a change in the flight number of
25that aircraft.
26    (13) Proceeds of mandatory service charges separately

 

 

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

 

 

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1excluding motor vehicles required to be registered under the
2Illinois Vehicle Code. The changes made to this Section by
3Public Act 97-767 apply on and after July 1, 2003, but no claim
4for credit or refund is allowed on or after August 16, 2013
5(the effective date of Public Act 98-456) for such taxes paid
6during the period beginning July 1, 2003 and ending on August
716, 2013 (the effective date of Public Act 98-456).
8    (17) Until July 1, 2003, distillation machinery and
9equipment, sold as a unit or kit, assembled or installed by the
10retailer, certified by the user to be used only for the
11production of ethyl alcohol that will be used for consumption
12as motor fuel or as a component of motor fuel for the personal
13use of the user, and not subject to sale or resale.
14    (18) Manufacturing and assembling machinery and equipment
15used primarily in the process of manufacturing or assembling
16tangible personal property for wholesale or retail sale or
17lease, whether that sale or lease is made directly by the
18manufacturer or by some other person, whether the materials
19used in the process are owned by the manufacturer or some other
20person, or whether that sale or lease is made apart from or as
21an incident to the seller's engaging in the service occupation
22of producing machines, tools, dies, jigs, patterns, gauges, or
23other similar items of no commercial value on special order
24for a particular purchaser. The exemption provided by this
25paragraph (18) includes production related tangible personal
26property, as defined in Section 3-50, purchased on or after

 

 

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1July 1, 2019. The exemption provided by this paragraph (18)
2does not include machinery and equipment used in (i) the
3generation of electricity for wholesale or retail sale; (ii)
4the generation or treatment of natural or artificial gas for
5wholesale or retail sale that is delivered to customers
6through pipes, pipelines, or mains; or (iii) the treatment of
7water for wholesale or retail sale that is delivered to
8customers through pipes, pipelines, or mains. The provisions
9of Public Act 98-583 are declaratory of existing law as to the
10meaning and scope of this exemption. Beginning on July 1,
112017, the exemption provided by this paragraph (18) includes,
12but is not limited to, graphic arts machinery and equipment,
13as defined in paragraph (6) of this Section.
14    (19) Personal property delivered to a purchaser or
15purchaser's donee inside Illinois when the purchase order for
16that personal property was received by a florist located
17outside Illinois who has a florist located inside Illinois
18deliver the personal property.
19    (20) Semen used for artificial insemination of livestock
20for direct agricultural production.
21    (21) Horses, or interests in horses, registered with and
22meeting the requirements of any of the Arabian Horse Club
23Registry of America, Appaloosa Horse Club, American Quarter
24Horse Association, United States Trotting Association, or
25Jockey Club, as appropriate, used for purposes of breeding or
26racing for prizes. This item (21) is exempt from the

 

 

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1provisions of Section 3-90, and the exemption provided for
2under this item (21) applies for all periods beginning May 30,
31995, but no claim for credit or refund is allowed on or after
4January 1, 2008 for such taxes paid during the period
5beginning May 30, 2000 and ending on January 1, 2008.
6    (22) Computers and communications equipment utilized for
7any hospital purpose and equipment used in the diagnosis,
8analysis, or treatment of hospital patients purchased by a
9lessor who leases the equipment, under a lease of one year or
10longer executed or in effect at the time the lessor would
11otherwise be subject to the tax imposed by this Act, to a
12hospital that has been issued an active tax exemption
13identification number by the Department under Section 1g of
14the Retailers' Occupation Tax Act. If the equipment is leased
15in a manner that does not qualify for this exemption or is used
16in any other non-exempt manner, the lessor shall be liable for
17the tax imposed under this Act or the Service Use Tax Act, as
18the case may be, based on the fair market value of the property
19at the time the non-qualifying use occurs. No lessor shall
20collect or attempt to collect an amount (however designated)
21that purports to reimburse that lessor for the tax imposed by
22this Act or the Service Use Tax Act, as the case may be, if the
23tax has not been paid by the lessor. If a lessor improperly
24collects any such amount from the lessee, the lessee shall
25have a legal right to claim a refund of that amount from the
26lessor. If, however, that amount is not refunded to the lessee

 

 

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1for any reason, the lessor is liable to pay that amount to the
2Department.
3    (23) Personal property purchased by a lessor who leases
4the property, under a lease of one year or longer executed or
5in effect at the time the lessor would otherwise be subject to
6the tax imposed by this Act, to a governmental body that has
7been issued an active sales tax exemption identification
8number by the Department under Section 1g of the Retailers'
9Occupation Tax Act. If the property is leased in a manner that
10does not qualify for this exemption or used in any other
11non-exempt manner, the lessor shall be liable for the tax
12imposed under this Act or the Service Use Tax Act, as the case
13may be, based on the fair market value of the property at the
14time the non-qualifying use occurs. No lessor shall collect or
15attempt to collect an amount (however designated) that
16purports to reimburse that lessor for the tax imposed by this
17Act or the Service Use Tax Act, as the case may be, if the tax
18has not been paid by the lessor. If a lessor improperly
19collects any such amount from the lessee, the lessee shall
20have a legal right to claim a refund of that amount from the
21lessor. If, however, that amount is not refunded to the lessee
22for any reason, the lessor is liable to pay that amount to the
23Department.
24    (24) Beginning with taxable years ending on or after
25December 31, 1995 and ending with taxable years ending on or
26before December 31, 2004, personal property that is donated

 

 

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1for disaster relief to be used in a State or federally declared
2disaster area in Illinois or bordering Illinois by a
3manufacturer or retailer that is registered in this State to a
4corporation, society, association, foundation, or institution
5that has been issued a sales tax exemption identification
6number by the Department that assists victims of the disaster
7who reside within the declared disaster area.
8    (25) Beginning with taxable years ending on or after
9December 31, 1995 and ending with taxable years ending on or
10before December 31, 2004, personal property that is used in
11the performance of infrastructure repairs in this State,
12including but not limited to municipal roads and streets,
13access roads, bridges, sidewalks, waste disposal systems,
14water and sewer line extensions, water distribution and
15purification facilities, storm water drainage and retention
16facilities, and sewage treatment facilities, resulting from a
17State or federally declared disaster in Illinois or bordering
18Illinois when such repairs are initiated on facilities located
19in the declared disaster area within 6 months after the
20disaster.
21    (26) Beginning July 1, 1999, game or game birds purchased
22at a "game breeding and hunting preserve area" as that term is
23used in the Wildlife Code. This paragraph is exempt from the
24provisions of Section 3-90.
25    (27) A motor vehicle, as that term is defined in Section
261-146 of the Illinois Vehicle Code, that is donated to a

 

 

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

 

 

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1entity purchases the personal property sold at the events from
2another individual or entity that sold the property for the
3purpose of resale by the fundraising entity and that profits
4from the sale to the fundraising entity. This paragraph is
5exempt from the provisions of Section 3-90.
6    (29) Beginning January 1, 2000 and through December 31,
72001, new or used automatic vending machines that prepare and
8serve hot food and beverages, including coffee, soup, and
9other items, and replacement parts for these machines.
10Beginning January 1, 2002 and through June 30, 2003, machines
11and parts for machines used in commercial, coin-operated
12amusement and vending business if a use or occupation tax is
13paid on the gross receipts derived from the use of the
14commercial, coin-operated amusement and vending machines. This
15paragraph is exempt from the provisions of Section 3-90.
16    (30) Beginning January 1, 2001 and through June 30, 2016,
17food for human consumption that is to be consumed off the
18premises where it is sold (other than alcoholic beverages,
19soft drinks, and food that has been prepared for immediate
20consumption) and prescription and nonprescription medicines,
21drugs, medical appliances, and insulin, urine testing
22materials, syringes, and needles used by diabetics, for human
23use, when purchased for use by a person receiving medical
24assistance under Article V of the Illinois Public Aid Code who
25resides in a licensed long-term care facility, as defined in
26the Nursing Home Care Act, or in a licensed facility as defined

 

 

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1in the ID/DD Community Care Act, the MC/DD Act, or the
2Specialized Mental Health Rehabilitation Act of 2013.
3    (31) Beginning on August 2, 2001 (the effective date of
4Public Act 92-227), computers and communications equipment
5utilized for any hospital purpose and equipment used in the
6diagnosis, analysis, or treatment of hospital patients
7purchased by a lessor who leases the equipment, under a lease
8of one year or longer executed or in effect at the time the
9lessor would otherwise be subject to the tax imposed by this
10Act, to a hospital that has been issued an active tax exemption
11identification number by the Department under Section 1g of
12the Retailers' Occupation Tax Act. If the equipment is leased
13in a manner that does not qualify for this exemption or is used
14in any other nonexempt manner, the lessor shall be liable for
15the tax imposed under this Act or the Service Use Tax Act, as
16the case may be, based on the fair market value of the property
17at the time the nonqualifying use occurs. No lessor shall
18collect or attempt to collect an amount (however designated)
19that purports to reimburse that lessor for the tax imposed by
20this Act or the Service Use Tax Act, as the case may be, if the
21tax has not been paid by the lessor. If a lessor improperly
22collects any such amount from the lessee, the lessee shall
23have a legal right to claim a refund of that amount from the
24lessor. If, however, that amount is not refunded to the lessee
25for any reason, the lessor is liable to pay that amount to the
26Department. This paragraph is exempt from the provisions of

 

 

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1Section 3-90.
2    (32) Beginning on August 2, 2001 (the effective date of
3Public Act 92-227), personal property purchased by a lessor
4who leases the property, under a lease of one year or longer
5executed or in effect at the time the lessor would otherwise be
6subject to the tax imposed by this Act, to a governmental body
7that has been issued an active sales tax exemption
8identification number by the Department under Section 1g of
9the Retailers' Occupation Tax Act. If the property is leased
10in a manner that does not qualify for this exemption or used in
11any other nonexempt manner, the lessor shall be liable for the
12tax imposed under this Act or the Service Use Tax Act, as the
13case may be, based on the fair market value of the property at
14the time the nonqualifying use occurs. No lessor shall collect
15or attempt to collect an amount (however designated) that
16purports to reimburse that lessor for the tax imposed by this
17Act or the Service Use Tax Act, as the case may be, if the tax
18has not been paid by the lessor. If a lessor improperly
19collects any such amount from the lessee, the lessee shall
20have a legal right to claim a refund of that amount from the
21lessor. If, however, that amount is not refunded to the lessee
22for any reason, the lessor is liable to pay that amount to the
23Department. This paragraph is exempt from the provisions of
24Section 3-90.
25    (33) On and after July 1, 2003 and through June 30, 2004,
26the use in this State of motor vehicles of the second division

 

 

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1with a gross vehicle weight in excess of 8,000 pounds and that
2are subject to the commercial distribution fee imposed under
3Section 3-815.1 of the Illinois Vehicle Code. Beginning on
4July 1, 2004 and through June 30, 2005, the use in this State
5of motor vehicles of the second division: (i) with a gross
6vehicle weight rating in excess of 8,000 pounds; (ii) that are
7subject to the commercial distribution fee imposed under
8Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
9are primarily used for commercial purposes. Through June 30,
102005, this exemption applies to repair and replacement parts
11added after the initial purchase of such a motor vehicle if
12that motor vehicle is used in a manner that would qualify for
13the rolling stock exemption otherwise provided for in this
14Act. For purposes of this paragraph, the term "used for
15commercial purposes" means the transportation of persons or
16property in furtherance of any commercial or industrial
17enterprise, whether for-hire or not.
18    (34) Beginning January 1, 2008, tangible personal property
19used in the construction or maintenance of a community water
20supply, as defined under Section 3.145 of the Environmental
21Protection Act, that is operated by a not-for-profit
22corporation that holds a valid water supply permit issued
23under Title IV of the Environmental Protection Act. This
24paragraph is exempt from the provisions of Section 3-90.
25    (35) Beginning January 1, 2010 and continuing through
26December 31, 2024, materials, parts, equipment, components,

 

 

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1and furnishings incorporated into or upon an aircraft as part
2of the modification, refurbishment, completion, replacement,
3repair, or maintenance of the aircraft. This exemption
4includes consumable supplies used in the modification,
5refurbishment, completion, replacement, repair, and
6maintenance of aircraft. However, until January 1, 2024, this
7exemption , but excludes any materials, parts, equipment,
8components, and consumable supplies used in the modification,
9replacement, repair, and maintenance of aircraft engines or
10power plants, whether such engines or power plants are
11installed or uninstalled upon any such aircraft. "Consumable
12supplies" include, but are not limited to, adhesive, tape,
13sandpaper, general purpose lubricants, cleaning solution,
14latex gloves, and protective films.
15    Beginning January 1, 2010 and continuing through December
1631, 2023, this This exemption applies only to the use of
17qualifying tangible personal property by persons who modify,
18refurbish, complete, repair, replace, or maintain aircraft and
19who (i) hold an Air Agency Certificate and are empowered to
20operate an approved repair station by the Federal Aviation
21Administration, (ii) have a Class IV Rating, and (iii) conduct
22operations in accordance with Part 145 of the Federal Aviation
23Regulations. From January 1, 2024 through December 31, 2024,
24this exemption applies only to the use of qualifying tangible
25personal property by: (A) persons who modify, refurbish,
26complete, repair, replace, or maintain aircraft and who (i)

 

 

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1hold an Air Agency Certificate and are empowered to operate an
2approved repair station by the Federal Aviation
3Administration, (ii) have a Class IV Rating, and (iii) conduct
4operations in accordance with Part 145 of the Federal Aviation
5Regulations; and (B) persons who engage in the modification,
6replacement, repair, and maintenance of aircraft engines or
7power plants without regard to whether or not those persons
8meet the qualifications of item (A).
9    The exemption does not include aircraft operated by a
10commercial air carrier providing scheduled passenger air
11service pursuant to authority issued under Part 121 or Part
12129 of the Federal Aviation Regulations. The changes made to
13this paragraph (35) by Public Act 98-534 are declarative of
14existing law. It is the intent of the General Assembly that the
15exemption under this paragraph (35) applies continuously from
16January 1, 2010 through December 31, 2024; however, no claim
17for credit or refund is allowed for taxes paid as a result of
18the disallowance of this exemption on or after January 1, 2015
19and prior to February 5, 2020 (the effective date of Public Act
20101-629) this amendatory Act of the 101st General Assembly.
21    (36) Tangible personal property purchased by a
22public-facilities corporation, as described in Section
2311-65-10 of the Illinois Municipal Code, for purposes of
24constructing or furnishing a municipal convention hall, but
25only if the legal title to the municipal convention hall is
26transferred to the municipality without any further

 

 

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1consideration by or on behalf of the municipality at the time
2of the completion of the municipal convention hall or upon the
3retirement or redemption of any bonds or other debt
4instruments issued by the public-facilities corporation in
5connection with the development of the municipal convention
6hall. This exemption includes existing public-facilities
7corporations as provided in Section 11-65-25 of the Illinois
8Municipal Code. This paragraph is exempt from the provisions
9of Section 3-90.
10    (37) Beginning January 1, 2017 and through December 31,
112026, menstrual pads, tampons, and menstrual cups.
12    (38) Merchandise that is subject to the Rental Purchase
13Agreement Occupation and Use Tax. The purchaser must certify
14that the item is purchased to be rented subject to a rental
15purchase agreement, as defined in the Rental Purchase
16Agreement Act, and provide proof of registration under the
17Rental Purchase Agreement Occupation and Use Tax Act. This
18paragraph is exempt from the provisions of Section 3-90.
19    (39) Tangible personal property purchased by a purchaser
20who is exempt from the tax imposed by this Act by operation of
21federal law. This paragraph is exempt from the provisions of
22Section 3-90.
23    (40) Qualified tangible personal property used in the
24construction or operation of a data center that has been
25granted a certificate of exemption by the Department of
26Commerce and Economic Opportunity, whether that tangible

 

 

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1personal property is purchased by the owner, operator, or
2tenant of the data center or by a contractor or subcontractor
3of the owner, operator, or tenant. Data centers that would
4have qualified for a certificate of exemption prior to January
51, 2020 had Public Act 101-31 been in effect may apply for and
6obtain an exemption for subsequent purchases of computer
7equipment or enabling software purchased or leased to upgrade,
8supplement, or replace computer equipment or enabling software
9purchased or leased in the original investment that would have
10qualified.
11    The Department of Commerce and Economic Opportunity shall
12grant a certificate of exemption under this item (40) to
13qualified data centers as defined by Section 605-1025 of the
14Department of Commerce and Economic Opportunity Law of the
15Civil Administrative Code of Illinois.
16    For the purposes of this item (40):
17        "Data center" means a building or a series of
18    buildings rehabilitated or constructed to house working
19    servers in one physical location or multiple sites within
20    the State of Illinois.
21        "Qualified tangible personal property" means:
22    electrical systems and equipment; climate control and
23    chilling equipment and systems; mechanical systems and
24    equipment; monitoring and secure systems; emergency
25    generators; hardware; computers; servers; data storage
26    devices; network connectivity equipment; racks; cabinets;

 

 

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1    telecommunications cabling infrastructure; raised floor
2    systems; peripheral components or systems; software;
3    mechanical, electrical, or plumbing systems; battery
4    systems; cooling systems and towers; temperature control
5    systems; other cabling; and other data center
6    infrastructure equipment and systems necessary to operate
7    qualified tangible personal property, including fixtures;
8    and component parts of any of the foregoing, including
9    installation, maintenance, repair, refurbishment, and
10    replacement of qualified tangible personal property to
11    generate, transform, transmit, distribute, or manage
12    electricity necessary to operate qualified tangible
13    personal property; and all other tangible personal
14    property that is essential to the operations of a computer
15    data center. The term "qualified tangible personal
16    property" also includes building materials physically
17    incorporated in to the qualifying data center. To document
18    the exemption allowed under this Section, the retailer
19    must obtain from the purchaser a copy of the certificate
20    of eligibility issued by the Department of Commerce and
21    Economic Opportunity.
22    This item (40) is exempt from the provisions of Section
233-90.
24    (41) Beginning July 1, 2022, breast pumps, breast pump
25collection and storage supplies, and breast pump kits. This
26item (41) is exempt from the provisions of Section 3-90. As

 

 

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1used in this item (41):
2        "Breast pump" means an electrically controlled or
3    manually controlled pump device designed or marketed to be
4    used to express milk from a human breast during lactation,
5    including the pump device and any battery, AC adapter, or
6    other power supply unit that is used to power the pump
7    device and is packaged and sold with the pump device at the
8    time of sale.
9        "Breast pump collection and storage supplies" means
10    items of tangible personal property designed or marketed
11    to be used in conjunction with a breast pump to collect
12    milk expressed from a human breast and to store collected
13    milk until it is ready for consumption.
14        "Breast pump collection and storage supplies"
15    includes, but is not limited to: breast shields and breast
16    shield connectors; breast pump tubes and tubing adapters;
17    breast pump valves and membranes; backflow protectors and
18    backflow protector adaptors; bottles and bottle caps
19    specific to the operation of the breast pump; and breast
20    milk storage bags.
21        "Breast pump collection and storage supplies" does not
22    include: (1) bottles and bottle caps not specific to the
23    operation of the breast pump; (2) breast pump travel bags
24    and other similar carrying accessories, including ice
25    packs, labels, and other similar products; (3) breast pump
26    cleaning supplies; (4) nursing bras, bra pads, breast

 

 

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1    shells, and other similar products; and (5) creams,
2    ointments, and other similar products that relieve
3    breastfeeding-related symptoms or conditions of the
4    breasts or nipples, unless sold as part of a breast pump
5    kit that is pre-packaged by the breast pump manufacturer
6    or distributor.
7        "Breast pump kit" means a kit that: (1) contains no
8    more than a breast pump, breast pump collection and
9    storage supplies, a rechargeable battery for operating the
10    breast pump, a breastmilk cooler, bottle stands, ice
11    packs, and a breast pump carrying case; and (2) is
12    pre-packaged as a breast pump kit by the breast pump
13    manufacturer or distributor.
14    (42) (41) Tangible personal property sold by or on behalf
15of the State Treasurer pursuant to the Revised Uniform
16Unclaimed Property Act. This item (42) (41) is exempt from the
17provisions of Section 3-90.
18(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
19101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
206-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
21102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
22eff. 5-27-22; revised 8-1-22.)
 
23    Section 10. The Service Use Tax Act is amended by changing
24Section 3-5 as follows:
 

 

 

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1    (35 ILCS 110/3-5)
2    Sec. 3-5. Exemptions. Use of the following tangible
3personal property is exempt from the tax imposed by this Act:
4    (1) Personal property purchased from a corporation,
5society, association, foundation, institution, or
6organization, other than a limited liability company, that is
7organized and operated as a not-for-profit service enterprise
8for the benefit of persons 65 years of age or older if the
9personal property was not purchased by the enterprise for the
10purpose of resale by the enterprise.
11    (2) Personal property purchased by a non-profit Illinois
12county fair association for use in conducting, operating, or
13promoting the county fair.
14    (3) Personal property purchased by a not-for-profit arts
15or cultural organization that establishes, by proof required
16by the Department by rule, that it has received an exemption
17under Section 501(c)(3) of the Internal Revenue Code and that
18is organized and operated primarily for the presentation or
19support of arts or cultural programming, activities, or
20services. These organizations include, but are not limited to,
21music and dramatic arts organizations such as symphony
22orchestras and theatrical groups, arts and cultural service
23organizations, local arts councils, visual arts organizations,
24and media arts organizations. On and after July 1, 2001 (the
25effective date of Public Act 92-35), however, an entity
26otherwise eligible for this exemption shall not make tax-free

 

 

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1purchases unless it has an active identification number issued
2by the Department.
3    (4) Legal tender, currency, medallions, or gold or silver
4coinage issued by the State of Illinois, the government of the
5United States of America, or the government of any foreign
6country, and bullion.
7    (5) Until July 1, 2003 and beginning again on September 1,
82004 through August 30, 2014, graphic arts machinery and
9equipment, including repair and replacement parts, both new
10and used, and including that manufactured on special order or
11purchased for lease, certified by the purchaser to be used
12primarily for graphic arts production. Equipment includes
13chemicals or chemicals acting as catalysts but only if the
14chemicals or chemicals acting as catalysts effect a direct and
15immediate change upon a graphic arts product. Beginning on
16July 1, 2017, graphic arts machinery and equipment is included
17in the manufacturing and assembling machinery and equipment
18exemption under Section 2 of this Act.
19    (6) Personal property purchased from a teacher-sponsored
20student organization affiliated with an elementary or
21secondary school located in Illinois.
22    (7) Farm machinery and equipment, both new and used,
23including that manufactured on special order, certified by the
24purchaser to be used primarily for production agriculture or
25State or federal agricultural programs, including individual
26replacement parts for the machinery and equipment, including

 

 

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

 

 

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

 

 

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

 

 

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1Public Act 97-767 apply on and after July 1, 2003, but no claim
2for credit or refund is allowed on or after August 16, 2013
3(the effective date of Public Act 98-456) for such taxes paid
4during the period beginning July 1, 2003 and ending on August
516, 2013 (the effective date of Public Act 98-456).
6    (13) Semen used for artificial insemination of livestock
7for direct agricultural production.
8    (14) Horses, or interests in horses, registered with and
9meeting the requirements of any of the Arabian Horse Club
10Registry of America, Appaloosa Horse Club, American Quarter
11Horse Association, United States Trotting Association, or
12Jockey Club, as appropriate, used for purposes of breeding or
13racing for prizes. This item (14) is exempt from the
14provisions of Section 3-75, and the exemption provided for
15under this item (14) applies for all periods beginning May 30,
161995, but no claim for credit or refund is allowed on or after
17January 1, 2008 (the effective date of Public Act 95-88) for
18such taxes paid during the period beginning May 30, 2000 and
19ending on January 1, 2008 (the effective date of Public Act
2095-88).
21    (15) Computers and communications equipment utilized for
22any hospital purpose and equipment used in the diagnosis,
23analysis, or treatment of hospital patients purchased by a
24lessor who leases the equipment, under a lease of one year or
25longer executed or in effect at the time the lessor would
26otherwise be subject to the tax imposed by this Act, to a

 

 

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

 

 

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

 

 

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1access roads, bridges, sidewalks, waste disposal systems,
2water and sewer line extensions, water distribution and
3purification facilities, storm water drainage and retention
4facilities, and sewage treatment facilities, resulting from a
5State or federally declared disaster in Illinois or bordering
6Illinois when such repairs are initiated on facilities located
7in the declared disaster area within 6 months after the
8disaster.
9    (19) Beginning July 1, 1999, game or game birds purchased
10at a "game breeding and hunting preserve area" as that term is
11used in the Wildlife Code. This paragraph is exempt from the
12provisions of Section 3-75.
13    (20) A motor vehicle, as that term is defined in Section
141-146 of the Illinois Vehicle Code, that is donated to a
15corporation, limited liability company, society, association,
16foundation, or institution that is determined by the
17Department to be organized and operated exclusively for
18educational purposes. For purposes of this exemption, "a
19corporation, limited liability company, society, association,
20foundation, or institution organized and operated exclusively
21for educational purposes" means all tax-supported public
22schools, private schools that offer systematic instruction in
23useful branches of learning by methods common to public
24schools and that compare favorably in their scope and
25intensity with the course of study presented in tax-supported
26schools, and vocational or technical schools or institutes

 

 

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1organized and operated exclusively to provide a course of
2study of not less than 6 weeks duration and designed to prepare
3individuals to follow a trade or to pursue a manual,
4technical, mechanical, industrial, business, or commercial
5occupation.
6    (21) Beginning January 1, 2000, personal property,
7including food, purchased through fundraising events for the
8benefit of a public or private elementary or secondary school,
9a group of those schools, or one or more school districts if
10the events are sponsored by an entity recognized by the school
11district that consists primarily of volunteers and includes
12parents and teachers of the school children. This paragraph
13does not apply to fundraising events (i) for the benefit of
14private home instruction or (ii) for which the fundraising
15entity purchases the personal property sold at the events from
16another individual or entity that sold the property for the
17purpose of resale by the fundraising entity and that profits
18from the sale to the fundraising entity. This paragraph is
19exempt from the provisions of Section 3-75.
20    (22) Beginning January 1, 2000 and through December 31,
212001, new or used automatic vending machines that prepare and
22serve hot food and beverages, including coffee, soup, and
23other items, and replacement parts for these machines.
24Beginning January 1, 2002 and through June 30, 2003, machines
25and parts for machines used in commercial, coin-operated
26amusement and vending business if a use or occupation tax is

 

 

HB2518 Engrossed- 34 -LRB103 28353 HLH 54733 b

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

 

 

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

 

 

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1based on the fair market value of the property at the time the
2nonqualifying use occurs. No lessor shall collect or attempt
3to collect an amount (however designated) that purports to
4reimburse that lessor for the tax imposed by this Act or the
5Use Tax Act, as the case may be, if the tax has not been paid
6by the lessor. If a lessor improperly collects any such amount
7from the lessee, the lessee shall have a legal right to claim a
8refund of that amount from the lessor. If, however, that
9amount is not refunded to the lessee for any reason, the lessor
10is liable to pay that amount to the Department. This paragraph
11is exempt from the provisions of Section 3-75.
12    (26) Beginning January 1, 2008, tangible personal property
13used in the construction or maintenance of a community water
14supply, as defined under Section 3.145 of the Environmental
15Protection Act, that is operated by a not-for-profit
16corporation that holds a valid water supply permit issued
17under Title IV of the Environmental Protection Act. This
18paragraph is exempt from the provisions of Section 3-75.
19    (27) Beginning January 1, 2010 and continuing through
20December 31, 2024, materials, parts, equipment, components,
21and furnishings incorporated into or upon an aircraft as part
22of the modification, refurbishment, completion, replacement,
23repair, or maintenance of the aircraft. This exemption
24includes consumable supplies used in the modification,
25refurbishment, completion, replacement, repair, and
26maintenance of aircraft. However, until January 1, 2024, this

 

 

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1exemption , but excludes any materials, parts, equipment,
2components, and consumable supplies used in the modification,
3replacement, repair, and maintenance of aircraft engines or
4power plants, whether such engines or power plants are
5installed or uninstalled upon any such aircraft. "Consumable
6supplies" include, but are not limited to, adhesive, tape,
7sandpaper, general purpose lubricants, cleaning solution,
8latex gloves, and protective films.
9    Beginning January 1, 2010 and continuing through December
1031, 2023, this This exemption applies only to the use of
11qualifying tangible personal property transferred incident to
12the modification, refurbishment, completion, replacement,
13repair, or maintenance of aircraft by persons who (i) hold an
14Air Agency Certificate and are empowered to operate an
15approved repair station by the Federal Aviation
16Administration, (ii) have a Class IV Rating, and (iii) conduct
17operations in accordance with Part 145 of the Federal Aviation
18Regulations. From January 1, 2024 through December 31, 2024,
19this exemption applies only to the use of qualifying tangible
20personal property by: (A) persons who modify, refurbish,
21complete, repair, replace, or maintain aircraft and who (i)
22hold an Air Agency Certificate and are empowered to operate an
23approved repair station by the Federal Aviation
24Administration, (ii) have a Class IV Rating, and (iii) conduct
25operations in accordance with Part 145 of the Federal Aviation
26Regulations; and (B) persons who engage in the modification,

 

 

HB2518 Engrossed- 38 -LRB103 28353 HLH 54733 b

1replacement, repair, and maintenance of aircraft engines or
2power plants without regard to whether or not those persons
3meet the qualifications of item (A).
4    The exemption does not include aircraft operated by a
5commercial air carrier providing scheduled passenger air
6service pursuant to authority issued under Part 121 or Part
7129 of the Federal Aviation Regulations. The changes made to
8this paragraph (27) by Public Act 98-534 are declarative of
9existing law. It is the intent of the General Assembly that the
10exemption under this paragraph (27) applies continuously from
11January 1, 2010 through December 31, 2024; however, no claim
12for credit or refund is allowed for taxes paid as a result of
13the disallowance of this exemption on or after January 1, 2015
14and prior to February 5, 2020 (the effective date of Public Act
15101-629) this amendatory Act of the 101st General Assembly.
16    (28) Tangible personal property purchased by a
17public-facilities corporation, as described in Section
1811-65-10 of the Illinois Municipal Code, for purposes of
19constructing or furnishing a municipal convention hall, but
20only if the legal title to the municipal convention hall is
21transferred to the municipality without any further
22consideration by or on behalf of the municipality at the time
23of the completion of the municipal convention hall or upon the
24retirement or redemption of any bonds or other debt
25instruments issued by the public-facilities corporation in
26connection with the development of the municipal convention

 

 

HB2518 Engrossed- 39 -LRB103 28353 HLH 54733 b

1hall. This exemption includes existing public-facilities
2corporations as provided in Section 11-65-25 of the Illinois
3Municipal Code. This paragraph is exempt from the provisions
4of Section 3-75.
5    (29) Beginning January 1, 2017 and through December 31,
62026, menstrual pads, tampons, and menstrual cups.
7    (30) Tangible personal property transferred to a purchaser
8who is exempt from the tax imposed by this Act by operation of
9federal law. This paragraph is exempt from the provisions of
10Section 3-75.
11    (31) Qualified tangible personal property used in the
12construction or operation of a data center that has been
13granted a certificate of exemption by the Department of
14Commerce and Economic Opportunity, whether that tangible
15personal property is purchased by the owner, operator, or
16tenant of the data center or by a contractor or subcontractor
17of the owner, operator, or tenant. Data centers that would
18have qualified for a certificate of exemption prior to January
191, 2020 had Public Act 101-31 this amendatory Act of the 101st
20General Assembly been in effect, may apply for and obtain an
21exemption for subsequent purchases of computer equipment or
22enabling software purchased or leased to upgrade, supplement,
23or replace computer equipment or enabling software purchased
24or leased in the original investment that would have
25qualified.
26    The Department of Commerce and Economic Opportunity shall

 

 

HB2518 Engrossed- 40 -LRB103 28353 HLH 54733 b

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

 

 

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1    electricity necessary to operate qualified tangible
2    personal property; and all other tangible personal
3    property that is essential to the operations of a computer
4    data center. The term "qualified tangible personal
5    property" also includes building materials physically
6    incorporated in to the qualifying data center. To document
7    the exemption allowed under this Section, the retailer
8    must obtain from the purchaser a copy of the certificate
9    of eligibility issued by the Department of Commerce and
10    Economic Opportunity.
11    This item (31) is exempt from the provisions of Section
123-75.
13    (32) Beginning July 1, 2022, breast pumps, breast pump
14collection and storage supplies, and breast pump kits. This
15item (32) is exempt from the provisions of Section 3-75. As
16used in this item (32):
17        "Breast pump" means an electrically controlled or
18    manually controlled pump device designed or marketed to be
19    used to express milk from a human breast during lactation,
20    including the pump device and any battery, AC adapter, or
21    other power supply unit that is used to power the pump
22    device and is packaged and sold with the pump device at the
23    time of sale.
24        "Breast pump collection and storage supplies" means
25    items of tangible personal property designed or marketed
26    to be used in conjunction with a breast pump to collect

 

 

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

 

 

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1    pre-packaged as a breast pump kit by the breast pump
2    manufacturer or distributor.
3    (33) (32) Tangible personal property sold by or on behalf
4of the State Treasurer pursuant to the Revised Uniform
5Unclaimed Property Act. This item (33) (32) is exempt from the
6provisions of Section 3-75.
7(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
8101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
970, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1075-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
 
11    Section 15. The Service Occupation Tax Act is amended by
12changing Section 3-5 as follows:
 
13    (35 ILCS 115/3-5)
14    Sec. 3-5. Exemptions. The following tangible personal
15property is exempt from the tax imposed by this Act:
16    (1) Personal property sold by a corporation, society,
17association, foundation, institution, or organization, other
18than a limited liability company, that is organized and
19operated as a not-for-profit service enterprise for the
20benefit of persons 65 years of age or older if the personal
21property was not purchased by the enterprise for the purpose
22of resale by the enterprise.
23    (2) Personal property purchased by a not-for-profit
24Illinois county fair association for use in conducting,

 

 

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1operating, or promoting the county fair.
2    (3) Personal property purchased by any not-for-profit arts
3or cultural organization that establishes, by proof required
4by the Department by rule, that it has received an exemption
5under Section 501(c)(3) of the Internal Revenue Code and that
6is organized and operated primarily for the presentation or
7support of arts or cultural programming, activities, or
8services. These organizations include, but are not limited to,
9music and dramatic arts organizations such as symphony
10orchestras and theatrical groups, arts and cultural service
11organizations, local arts councils, visual arts organizations,
12and media arts organizations. On and after July 1, 2001 (the
13effective date of Public Act 92-35), however, an entity
14otherwise eligible for this exemption shall not make tax-free
15purchases unless it has an active identification number issued
16by the Department.
17    (4) Legal tender, currency, medallions, or gold or silver
18coinage issued by the State of Illinois, the government of the
19United States of America, or the government of any foreign
20country, and bullion.
21    (5) Until July 1, 2003 and beginning again on September 1,
222004 through August 30, 2014, graphic arts machinery and
23equipment, including repair and replacement parts, both new
24and used, and including that manufactured on special order or
25purchased for lease, certified by the purchaser to be used
26primarily for graphic arts production. Equipment includes

 

 

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

 

 

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1on a motor vehicle required to be licensed if the selling price
2of the tender is separately stated.
3    Farm machinery and equipment shall include precision
4farming equipment that is installed or purchased to be
5installed on farm machinery and equipment including, but not
6limited to, tractors, harvesters, sprayers, planters, seeders,
7or spreaders. Precision farming equipment includes, but is not
8limited to, soil testing sensors, computers, monitors,
9software, global positioning and mapping systems, and other
10such equipment.
11    Farm machinery and equipment also includes computers,
12sensors, software, and related equipment used primarily in the
13computer-assisted operation of production agriculture
14facilities, equipment, and activities such as, but not limited
15to, the collection, monitoring, and correlation of animal and
16crop data for the purpose of formulating animal diets and
17agricultural chemicals. This item (7) is exempt from the
18provisions of Section 3-55.
19    (8) Until June 30, 2013, fuel and petroleum products sold
20to or used by an air common carrier, certified by the carrier
21to be used for consumption, shipment, or storage in the
22conduct of its business as an air common carrier, for a flight
23destined for or returning from a location or locations outside
24the United States without regard to previous or subsequent
25domestic stopovers.
26    Beginning July 1, 2013, fuel and petroleum products sold

 

 

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

 

 

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1Vehicle Code.
2    (11) Photoprocessing machinery and equipment, including
3repair and replacement parts, both new and used, including
4that manufactured on special order, certified by the purchaser
5to be used primarily for photoprocessing, and including
6photoprocessing machinery and equipment purchased for lease.
7    (12) Until July 1, 2028, coal and aggregate exploration,
8mining, off-highway hauling, processing, maintenance, and
9reclamation equipment, including replacement parts and
10equipment, and including equipment purchased for lease, but
11excluding motor vehicles required to be registered under the
12Illinois Vehicle Code. The changes made to this Section by
13Public Act 97-767 apply on and after July 1, 2003, but no claim
14for credit or refund is allowed on or after August 16, 2013
15(the effective date of Public Act 98-456) for such taxes paid
16during the period beginning July 1, 2003 and ending on August
1716, 2013 (the effective date of Public Act 98-456).
18    (13) Beginning January 1, 1992 and through June 30, 2016,
19food for human consumption that is to be consumed off the
20premises where it is sold (other than alcoholic beverages,
21soft drinks and food that has been prepared for immediate
22consumption) and prescription and non-prescription medicines,
23drugs, medical appliances, and insulin, urine testing
24materials, syringes, and needles used by diabetics, for human
25use, when purchased for use by a person receiving medical
26assistance under Article V of the Illinois Public Aid Code who

 

 

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1resides in a licensed long-term care facility, as defined in
2the Nursing Home Care Act, or in a licensed facility as defined
3in the ID/DD Community Care Act, the MC/DD Act, or the
4Specialized Mental Health Rehabilitation Act of 2013.
5    (14) Semen used for artificial insemination of livestock
6for direct agricultural production.
7    (15) Horses, or interests in horses, registered with and
8meeting the requirements of any of the Arabian Horse Club
9Registry of America, Appaloosa Horse Club, American Quarter
10Horse Association, United States Trotting Association, or
11Jockey Club, as appropriate, used for purposes of breeding or
12racing for prizes. This item (15) is exempt from the
13provisions of Section 3-55, and the exemption provided for
14under this item (15) applies for all periods beginning May 30,
151995, but no claim for credit or refund is allowed on or after
16January 1, 2008 (the effective date of Public Act 95-88) for
17such taxes paid during the period beginning May 30, 2000 and
18ending on January 1, 2008 (the effective date of Public Act
1995-88).
20    (16) Computers and communications equipment utilized for
21any hospital purpose and equipment used in the diagnosis,
22analysis, or treatment of hospital patients sold to a lessor
23who leases the equipment, under a lease of one year or longer
24executed or in effect at the time of the purchase, to a
25hospital that has been issued an active tax exemption
26identification number by the Department under Section 1g of

 

 

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1the Retailers' Occupation Tax Act.
2    (17) Personal property sold to a lessor who leases the
3property, under a lease of one year or longer executed or in
4effect at the time of the purchase, to a governmental body that
5has been issued an active tax exemption identification number
6by the Department under Section 1g of the Retailers'
7Occupation Tax Act.
8    (18) Beginning with taxable years ending on or after
9December 31, 1995 and ending with taxable years ending on or
10before December 31, 2004, personal property that is donated
11for disaster relief to be used in a State or federally declared
12disaster area in Illinois or bordering Illinois by a
13manufacturer or retailer that is registered in this State to a
14corporation, society, association, foundation, or institution
15that has been issued a sales tax exemption identification
16number by the Department that assists victims of the disaster
17who reside within the declared disaster area.
18    (19) Beginning with taxable years ending on or after
19December 31, 1995 and ending with taxable years ending on or
20before December 31, 2004, personal property that is used in
21the performance of infrastructure repairs in this State,
22including but not limited to municipal roads and streets,
23access roads, bridges, sidewalks, waste disposal systems,
24water and sewer line extensions, water distribution and
25purification facilities, storm water drainage and retention
26facilities, and sewage treatment facilities, resulting from a

 

 

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1State or federally declared disaster in Illinois or bordering
2Illinois when such repairs are initiated on facilities located
3in the declared disaster area within 6 months after the
4disaster.
5    (20) Beginning July 1, 1999, game or game birds sold at a
6"game breeding and hunting preserve area" as that term is used
7in the Wildlife Code. This paragraph is exempt from the
8provisions of Section 3-55.
9    (21) A motor vehicle, as that term is defined in Section
101-146 of the Illinois Vehicle Code, that is donated to a
11corporation, limited liability company, society, association,
12foundation, or institution that is determined by the
13Department to be organized and operated exclusively for
14educational purposes. For purposes of this exemption, "a
15corporation, limited liability company, society, association,
16foundation, or institution organized and operated exclusively
17for educational purposes" means all tax-supported public
18schools, private schools that offer systematic instruction in
19useful branches of learning by methods common to public
20schools and that compare favorably in their scope and
21intensity with the course of study presented in tax-supported
22schools, and vocational or technical schools or institutes
23organized and operated exclusively to provide a course of
24study of not less than 6 weeks duration and designed to prepare
25individuals to follow a trade or to pursue a manual,
26technical, mechanical, industrial, business, or commercial

 

 

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1occupation.
2    (22) Beginning January 1, 2000, personal property,
3including food, purchased through fundraising events for the
4benefit of a public or private elementary or secondary school,
5a group of those schools, or one or more school districts if
6the events are sponsored by an entity recognized by the school
7district that consists primarily of volunteers and includes
8parents and teachers of the school children. This paragraph
9does not apply to fundraising events (i) for the benefit of
10private home instruction or (ii) for which the fundraising
11entity purchases the personal property sold at the events from
12another individual or entity that sold the property for the
13purpose of resale by the fundraising entity and that profits
14from the sale to the fundraising entity. This paragraph is
15exempt from the provisions of Section 3-55.
16    (23) Beginning January 1, 2000 and through December 31,
172001, new or used automatic vending machines that prepare and
18serve hot food and beverages, including coffee, soup, and
19other items, and replacement parts for these machines.
20Beginning January 1, 2002 and through June 30, 2003, machines
21and parts for machines used in commercial, coin-operated
22amusement and vending business if a use or occupation tax is
23paid on the gross receipts derived from the use of the
24commercial, coin-operated amusement and vending machines. This
25paragraph is exempt from the provisions of Section 3-55.
26    (24) Beginning on August 2, 2001 (the effective date of

 

 

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1Public Act 92-227), computers and communications equipment
2utilized for any hospital purpose and equipment used in the
3diagnosis, analysis, or treatment of hospital patients sold to
4a lessor who leases the equipment, under a lease of one year or
5longer executed or in effect at the time of the purchase, to a
6hospital that has been issued an active tax exemption
7identification number by the Department under Section 1g of
8the Retailers' Occupation Tax Act. This paragraph is exempt
9from the provisions of Section 3-55.
10    (25) Beginning on August 2, 2001 (the effective date of
11Public Act 92-227), personal property sold to a lessor who
12leases the property, under a lease of one year or longer
13executed or in effect at the time of the purchase, to a
14governmental body that has been issued an active tax exemption
15identification number by the Department under Section 1g of
16the Retailers' Occupation Tax Act. This paragraph is exempt
17from the provisions of Section 3-55.
18    (26) Beginning on January 1, 2002 and through June 30,
192016, tangible personal property purchased from an Illinois
20retailer by a taxpayer engaged in centralized purchasing
21activities in Illinois who will, upon receipt of the property
22in Illinois, temporarily store the property in Illinois (i)
23for the purpose of subsequently transporting it outside this
24State for use or consumption thereafter solely outside this
25State or (ii) for the purpose of being processed, fabricated,
26or manufactured into, attached to, or incorporated into other

 

 

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1tangible personal property to be transported outside this
2State and thereafter used or consumed solely outside this
3State. The Director of Revenue shall, pursuant to rules
4adopted in accordance with the Illinois Administrative
5Procedure Act, issue a permit to any taxpayer in good standing
6with the Department who is eligible for the exemption under
7this paragraph (26). The permit issued under this paragraph
8(26) shall authorize the holder, to the extent and in the
9manner specified in the rules adopted under this Act, to
10purchase tangible personal property from a retailer exempt
11from the taxes imposed by this Act. Taxpayers shall maintain
12all necessary books and records to substantiate the use and
13consumption of all such tangible personal property outside of
14the State of Illinois.
15    (27) Beginning January 1, 2008, tangible personal property
16used in the construction or maintenance of a community water
17supply, as defined under Section 3.145 of the Environmental
18Protection Act, that is operated by a not-for-profit
19corporation that holds a valid water supply permit issued
20under Title IV of the Environmental Protection Act. This
21paragraph is exempt from the provisions of Section 3-55.
22    (28) Tangible personal property sold to a
23public-facilities corporation, as described in Section
2411-65-10 of the Illinois Municipal Code, for purposes of
25constructing or furnishing a municipal convention hall, but
26only if the legal title to the municipal convention hall is

 

 

HB2518 Engrossed- 55 -LRB103 28353 HLH 54733 b

1transferred to the municipality without any further
2consideration by or on behalf of the municipality at the time
3of the completion of the municipal convention hall or upon the
4retirement or redemption of any bonds or other debt
5instruments issued by the public-facilities corporation in
6connection with the development of the municipal convention
7hall. This exemption includes existing public-facilities
8corporations as provided in Section 11-65-25 of the Illinois
9Municipal Code. This paragraph is exempt from the provisions
10of Section 3-55.
11    (29) Beginning January 1, 2010 and continuing through
12December 31, 2024, materials, parts, equipment, components,
13and furnishings incorporated into or upon an aircraft as part
14of the modification, refurbishment, completion, replacement,
15repair, or maintenance of the aircraft. This exemption
16includes consumable supplies used in the modification,
17refurbishment, completion, replacement, repair, and
18maintenance of aircraft. However, until January 1, 2024, this
19exemption , but excludes any materials, parts, equipment,
20components, and consumable supplies used in the modification,
21replacement, repair, and maintenance of aircraft engines or
22power plants, whether such engines or power plants are
23installed or uninstalled upon any such aircraft. "Consumable
24supplies" include, but are not limited to, adhesive, tape,
25sandpaper, general purpose lubricants, cleaning solution,
26latex gloves, and protective films.

 

 

HB2518 Engrossed- 56 -LRB103 28353 HLH 54733 b

1    Beginning January 1, 2010 and continuing through December
231, 2023, this This exemption applies only to the transfer of
3qualifying tangible personal property incident to the
4modification, refurbishment, completion, replacement, repair,
5or maintenance of an aircraft by persons who (i) hold an Air
6Agency Certificate and are empowered to operate an approved
7repair station by the Federal Aviation Administration, (ii)
8have a Class IV Rating, and (iii) conduct operations in
9accordance with Part 145 of the Federal Aviation Regulations.
10The exemption does not include aircraft operated by a
11commercial air carrier providing scheduled passenger air
12service pursuant to authority issued under Part 121 or Part
13129 of the Federal Aviation Regulations. From January 1, 2024
14through December 31, 2024, this exemption applies only to the
15use of qualifying tangible personal property by: (A) persons
16who modify, refurbish, complete, repair, replace, or maintain
17aircraft and who (i) hold an Air Agency Certificate and are
18empowered to operate an approved repair station by the Federal
19Aviation Administration, (ii) have a Class IV Rating, and
20(iii) conduct operations in accordance with Part 145 of the
21Federal Aviation Regulations; and (B) persons who engage in
22the modification, replacement, repair, and maintenance of
23aircraft engines or power plants without regard to whether or
24not those persons meet the qualifications of item (A).
25    The changes made to this paragraph (29) by Public Act
2698-534 are declarative of existing law. It is the intent of the

 

 

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1General Assembly that the exemption under this paragraph (29)
2applies continuously from January 1, 2010 through December 31,
32024; however, no claim for credit or refund is allowed for
4taxes paid as a result of the disallowance of this exemption on
5or after January 1, 2015 and prior to February 5, 2020 (the
6effective date of Public Act 101-629) this amendatory Act of
7the 101st General Assembly.
8    (30) Beginning January 1, 2017 and through December 31,
92026, menstrual pads, tampons, and menstrual cups.
10    (31) Tangible personal property transferred to a purchaser
11who is exempt from tax by operation of federal law. This
12paragraph is exempt from the provisions of Section 3-55.
13    (32) Qualified tangible personal property used in the
14construction or operation of a data center that has been
15granted a certificate of exemption by the Department of
16Commerce and Economic Opportunity, whether that tangible
17personal property is purchased by the owner, operator, or
18tenant of the data center or by a contractor or subcontractor
19of the owner, operator, or tenant. Data centers that would
20have qualified for a certificate of exemption prior to January
211, 2020 had Public Act 101-31 this amendatory Act of the 101st
22General Assembly been in effect, may apply for and obtain an
23exemption for subsequent purchases of computer equipment or
24enabling software purchased or leased to upgrade, supplement,
25or replace computer equipment or enabling software purchased
26or leased in the original investment that would have

 

 

HB2518 Engrossed- 58 -LRB103 28353 HLH 54733 b

1qualified.
2    The Department of Commerce and Economic Opportunity shall
3grant a certificate of exemption under this item (32) to
4qualified data centers as defined by Section 605-1025 of the
5Department of Commerce and Economic Opportunity Law of the
6Civil Administrative Code of Illinois.
7    For the purposes of this item (32):
8        "Data center" means a building or a series of
9    buildings rehabilitated or constructed to house working
10    servers in one physical location or multiple sites within
11    the State of Illinois.
12        "Qualified tangible personal property" means:
13    electrical systems and equipment; climate control and
14    chilling equipment and systems; mechanical systems and
15    equipment; monitoring and secure systems; emergency
16    generators; hardware; computers; servers; data storage
17    devices; network connectivity equipment; racks; cabinets;
18    telecommunications cabling infrastructure; raised floor
19    systems; peripheral components or systems; software;
20    mechanical, electrical, or plumbing systems; battery
21    systems; cooling systems and towers; temperature control
22    systems; other cabling; and other data center
23    infrastructure equipment and systems necessary to operate
24    qualified tangible personal property, including fixtures;
25    and component parts of any of the foregoing, including
26    installation, maintenance, repair, refurbishment, and

 

 

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1    replacement of qualified tangible personal property to
2    generate, transform, transmit, distribute, or manage
3    electricity necessary to operate qualified tangible
4    personal property; and all other tangible personal
5    property that is essential to the operations of a computer
6    data center. The term "qualified tangible personal
7    property" also includes building materials physically
8    incorporated in to the qualifying data center. To document
9    the exemption allowed under this Section, the retailer
10    must obtain from the purchaser a copy of the certificate
11    of eligibility issued by the Department of Commerce and
12    Economic Opportunity.
13    This item (32) is exempt from the provisions of Section
143-55.
15    (33) Beginning July 1, 2022, breast pumps, breast pump
16collection and storage supplies, and breast pump kits. This
17item (33) is exempt from the provisions of Section 3-55. As
18used in this item (33):
19        "Breast pump" means an electrically controlled or
20    manually controlled pump device designed or marketed to be
21    used to express milk from a human breast during lactation,
22    including the pump device and any battery, AC adapter, or
23    other power supply unit that is used to power the pump
24    device and is packaged and sold with the pump device at the
25    time of sale.
26        "Breast pump collection and storage supplies" means

 

 

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

 

 

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1    breast pump, a breastmilk cooler, bottle stands, ice
2    packs, and a breast pump carrying case; and (2) is
3    pre-packaged as a breast pump kit by the breast pump
4    manufacturer or distributor.
5    (34) (33) Tangible personal property sold by or on behalf
6of the State Treasurer pursuant to the Revised Uniform
7Unclaimed Property Act. This item (34) (33) is exempt from the
8provisions of Section 3-55.
9(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
10101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
1170, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
1275-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
 
13    Section 20. The Retailers' Occupation Tax Act is amended
14by changing Section 2-5 as follows:
 
15    (35 ILCS 120/2-5)
16    Sec. 2-5. Exemptions. Gross receipts from proceeds from
17the sale of the following tangible personal property are
18exempt from the tax imposed by this Act:
19        (1) Farm chemicals.
20        (2) Farm machinery and equipment, both new and used,
21    including that manufactured on special order, certified by
22    the purchaser to be used primarily for production
23    agriculture or State or federal agricultural programs,
24    including individual replacement parts for the machinery

 

 

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

 

 

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1    the computer-assisted operation of production agriculture
2    facilities, equipment, and activities such as, but not
3    limited to, the collection, monitoring, and correlation of
4    animal and crop data for the purpose of formulating animal
5    diets and agricultural chemicals. This item (2) is exempt
6    from the provisions of Section 2-70.
7        (3) Until July 1, 2003, distillation machinery and
8    equipment, sold as a unit or kit, assembled or installed
9    by the retailer, certified by the user to be used only for
10    the production of ethyl alcohol that will be used for
11    consumption as motor fuel or as a component of motor fuel
12    for the personal use of the user, and not subject to sale
13    or resale.
14        (4) Until July 1, 2003 and beginning again September
15    1, 2004 through August 30, 2014, graphic arts machinery
16    and equipment, including repair and replacement parts,
17    both new and used, and including that manufactured on
18    special order or purchased for lease, certified by the
19    purchaser to be used primarily for graphic arts
20    production. Equipment includes chemicals or chemicals
21    acting as catalysts but only if the chemicals or chemicals
22    acting as catalysts effect a direct and immediate change
23    upon a graphic arts product. Beginning on July 1, 2017,
24    graphic arts machinery and equipment is included in the
25    manufacturing and assembling machinery and equipment
26    exemption under paragraph (14).

 

 

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1        (5) A motor vehicle that is used for automobile
2    renting, as defined in the Automobile Renting Occupation
3    and Use Tax Act. This paragraph is exempt from the
4    provisions of Section 2-70.
5        (6) Personal property sold by a teacher-sponsored
6    student organization affiliated with an elementary or
7    secondary school located in Illinois.
8        (7) Until July 1, 2003, proceeds of that portion of
9    the selling price of a passenger car the sale of which is
10    subject to the Replacement Vehicle Tax.
11        (8) Personal property sold to an Illinois county fair
12    association for use in conducting, operating, or promoting
13    the county fair.
14        (9) Personal property sold to a not-for-profit arts or
15    cultural organization that establishes, by proof required
16    by the Department by rule, that it has received an
17    exemption under Section 501(c)(3) of the Internal Revenue
18    Code and that is organized and operated primarily for the
19    presentation or support of arts or cultural programming,
20    activities, or services. These organizations include, but
21    are not limited to, music and dramatic arts organizations
22    such as symphony orchestras and theatrical groups, arts
23    and cultural service organizations, local arts councils,
24    visual arts organizations, and media arts organizations.
25    On and after July 1, 2001 (the effective date of Public Act
26    92-35), however, an entity otherwise eligible for this

 

 

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1    exemption shall not make tax-free purchases unless it has
2    an active identification number issued by the Department.
3        (10) Personal property sold by a corporation, society,
4    association, foundation, institution, or organization,
5    other than a limited liability company, that is organized
6    and operated as a not-for-profit service enterprise for
7    the benefit of persons 65 years of age or older if the
8    personal property was not purchased by the enterprise for
9    the purpose of resale by the enterprise.
10        (11) Personal property sold to a governmental body, to
11    a corporation, society, association, foundation, or
12    institution organized and operated exclusively for
13    charitable, religious, or educational purposes, or to a
14    not-for-profit corporation, society, association,
15    foundation, institution, or organization that has no
16    compensated officers or employees and that is organized
17    and operated primarily for the recreation of persons 55
18    years of age or older. A limited liability company may
19    qualify for the exemption under this paragraph only if the
20    limited liability company is organized and operated
21    exclusively for educational purposes. On and after July 1,
22    1987, however, no entity otherwise eligible for this
23    exemption shall make tax-free purchases unless it has an
24    active identification number issued by the Department.
25        (12) (Blank).
26        (12-5) On and after July 1, 2003 and through June 30,

 

 

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1    2004, motor vehicles of the second division with a gross
2    vehicle weight in excess of 8,000 pounds that are subject
3    to the commercial distribution fee imposed under Section
4    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
5    2004 and through June 30, 2005, the use in this State of
6    motor vehicles of the second division: (i) with a gross
7    vehicle weight rating in excess of 8,000 pounds; (ii) that
8    are subject to the commercial distribution fee imposed
9    under Section 3-815.1 of the Illinois Vehicle Code; and
10    (iii) that are primarily used for commercial purposes.
11    Through June 30, 2005, this exemption applies to repair
12    and replacement parts added after the initial purchase of
13    such a motor vehicle if that motor vehicle is used in a
14    manner that would qualify for the rolling stock exemption
15    otherwise provided for in this Act. For purposes of this
16    paragraph, "used for commercial purposes" means the
17    transportation of persons or property in furtherance of
18    any commercial or industrial enterprise whether for-hire
19    or not.
20        (13) Proceeds from sales to owners, lessors, or
21    shippers of tangible personal property that is utilized by
22    interstate carriers for hire for use as rolling stock
23    moving in interstate commerce and equipment operated by a
24    telecommunications provider, licensed as a common carrier
25    by the Federal Communications Commission, which is
26    permanently installed in or affixed to aircraft moving in

 

 

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1    interstate commerce.
2        (14) Machinery and equipment that will be used by the
3    purchaser, or a lessee of the purchaser, primarily in the
4    process of manufacturing or assembling tangible personal
5    property for wholesale or retail sale or lease, whether
6    the sale or lease is made directly by the manufacturer or
7    by some other person, whether the materials used in the
8    process are owned by the manufacturer or some other
9    person, or whether the sale or lease is made apart from or
10    as an incident to the seller's engaging in the service
11    occupation of producing machines, tools, dies, jigs,
12    patterns, gauges, or other similar items of no commercial
13    value on special order for a particular purchaser. The
14    exemption provided by this paragraph (14) does not include
15    machinery and equipment used in (i) the generation of
16    electricity for wholesale or retail sale; (ii) the
17    generation or treatment of natural or artificial gas for
18    wholesale or retail sale that is delivered to customers
19    through pipes, pipelines, or mains; or (iii) the treatment
20    of water for wholesale or retail sale that is delivered to
21    customers through pipes, pipelines, or mains. The
22    provisions of Public Act 98-583 are declaratory of
23    existing law as to the meaning and scope of this
24    exemption. Beginning on July 1, 2017, the exemption
25    provided by this paragraph (14) includes, but is not
26    limited to, graphic arts machinery and equipment, as

 

 

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1    defined in paragraph (4) of this Section.
2        (15) Proceeds of mandatory service charges separately
3    stated on customers' bills for purchase and consumption of
4    food and beverages, to the extent that the proceeds of the
5    service charge are in fact turned over as tips or as a
6    substitute for tips to the employees who participate
7    directly in preparing, serving, hosting or cleaning up the
8    food or beverage function with respect to which the
9    service charge is imposed.
10        (16) Tangible personal property sold to a purchaser if
11    the purchaser is exempt from use tax by operation of
12    federal law. This paragraph is exempt from the provisions
13    of Section 2-70.
14        (17) Tangible personal property sold to a common
15    carrier by rail or motor that receives the physical
16    possession of the property in Illinois and that transports
17    the property, or shares with another common carrier in the
18    transportation of the property, out of Illinois on a
19    standard uniform bill of lading showing the seller of the
20    property as the shipper or consignor of the property to a
21    destination outside Illinois, for use outside Illinois.
22        (18) Legal tender, currency, medallions, or gold or
23    silver coinage issued by the State of Illinois, the
24    government of the United States of America, or the
25    government of any foreign country, and bullion.
26        (19) Until July 1, 2003, oil field exploration,

 

 

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

 

 

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1    2013 (the effective date of Public Act 98-456).
2        (22) Until June 30, 2013, fuel and petroleum products
3    sold to or used by an air carrier, certified by the carrier
4    to be used for consumption, shipment, or storage in the
5    conduct of its business as an air common carrier, for a
6    flight destined for or returning from a location or
7    locations outside the United States without regard to
8    previous or subsequent domestic stopovers.
9        Beginning July 1, 2013, fuel and petroleum products
10    sold to or used by an air carrier, certified by the carrier
11    to be used for consumption, shipment, or storage in the
12    conduct of its business as an air common carrier, for a
13    flight that (i) is engaged in foreign trade or is engaged
14    in trade between the United States and any of its
15    possessions and (ii) transports at least one individual or
16    package for hire from the city of origination to the city
17    of final destination on the same aircraft, without regard
18    to a change in the flight number of that aircraft.
19        (23) A transaction in which the purchase order is
20    received by a florist who is located outside Illinois, but
21    who has a florist located in Illinois deliver the property
22    to the purchaser or the purchaser's donee in Illinois.
23        (24) Fuel consumed or used in the operation of ships,
24    barges, or vessels that are used primarily in or for the
25    transportation of property or the conveyance of persons
26    for hire on rivers bordering on this State if the fuel is

 

 

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1    delivered by the seller to the purchaser's barge, ship, or
2    vessel while it is afloat upon that bordering river.
3        (25) Except as provided in item (25-5) of this
4    Section, a motor vehicle sold in this State to a
5    nonresident even though the motor vehicle is delivered to
6    the nonresident in this State, if the motor vehicle is not
7    to be titled in this State, and if a drive-away permit is
8    issued to the motor vehicle as provided in Section 3-603
9    of the Illinois Vehicle Code or if the nonresident
10    purchaser has vehicle registration plates to transfer to
11    the motor vehicle upon returning to his or her home state.
12    The issuance of the drive-away permit or having the
13    out-of-state registration plates to be transferred is
14    prima facie evidence that the motor vehicle will not be
15    titled in this State.
16        (25-5) The exemption under item (25) does not apply if
17    the state in which the motor vehicle will be titled does
18    not allow a reciprocal exemption for a motor vehicle sold
19    and delivered in that state to an Illinois resident but
20    titled in Illinois. The tax collected under this Act on
21    the sale of a motor vehicle in this State to a resident of
22    another state that does not allow a reciprocal exemption
23    shall be imposed at a rate equal to the state's rate of tax
24    on taxable property in the state in which the purchaser is
25    a resident, except that the tax shall not exceed the tax
26    that would otherwise be imposed under this Act. At the

 

 

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1    time of the sale, the purchaser shall execute a statement,
2    signed under penalty of perjury, of his or her intent to
3    title the vehicle in the state in which the purchaser is a
4    resident within 30 days after the sale and of the fact of
5    the payment to the State of Illinois of tax in an amount
6    equivalent to the state's rate of tax on taxable property
7    in his or her state of residence and shall submit the
8    statement to the appropriate tax collection agency in his
9    or her state of residence. In addition, the retailer must
10    retain a signed copy of the statement in his or her
11    records. Nothing in this item shall be construed to
12    require the removal of the vehicle from this state
13    following the filing of an intent to title the vehicle in
14    the purchaser's state of residence if the purchaser titles
15    the vehicle in his or her state of residence within 30 days
16    after the date of sale. The tax collected under this Act in
17    accordance with this item (25-5) shall be proportionately
18    distributed as if the tax were collected at the 6.25%
19    general rate imposed under this Act.
20        (25-7) Beginning on July 1, 2007, no tax is imposed
21    under this Act on the sale of an aircraft, as defined in
22    Section 3 of the Illinois Aeronautics Act, if all of the
23    following conditions are met:
24            (1) the aircraft leaves this State within 15 days
25        after the later of either the issuance of the final
26        billing for the sale of the aircraft, or the

 

 

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1        authorized approval for return to service, completion
2        of the maintenance record entry, and completion of the
3        test flight and ground test for inspection, as
4        required by 14 CFR C.F.R. 91.407;
5            (2) the aircraft is not based or registered in
6        this State after the sale of the aircraft; and
7            (3) the seller retains in his or her books and
8        records and provides to the Department a signed and
9        dated certification from the purchaser, on a form
10        prescribed by the Department, certifying that the
11        requirements of this item (25-7) are met. The
12        certificate must also include the name and address of
13        the purchaser, the address of the location where the
14        aircraft is to be titled or registered, the address of
15        the primary physical location of the aircraft, and
16        other information that the Department may reasonably
17        require.
18        For purposes of this item (25-7):
19        "Based in this State" means hangared, stored, or
20    otherwise used, excluding post-sale customizations as
21    defined in this Section, for 10 or more days in each
22    12-month period immediately following the date of the sale
23    of the aircraft.
24        "Registered in this State" means an aircraft
25    registered with the Department of Transportation,
26    Aeronautics Division, or titled or registered with the

 

 

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1    Federal Aviation Administration to an address located in
2    this State.
3        This paragraph (25-7) is exempt from the provisions of
4    Section 2-70.
5        (26) Semen used for artificial insemination of
6    livestock for direct agricultural production.
7        (27) Horses, or interests in horses, registered with
8    and meeting the requirements of any of the Arabian Horse
9    Club Registry of America, Appaloosa Horse Club, American
10    Quarter Horse Association, United States Trotting
11    Association, or Jockey Club, as appropriate, used for
12    purposes of breeding or racing for prizes. This item (27)
13    is exempt from the provisions of Section 2-70, and the
14    exemption provided for under this item (27) applies for
15    all periods beginning May 30, 1995, but no claim for
16    credit or refund is allowed on or after January 1, 2008
17    (the effective date of Public Act 95-88) for such taxes
18    paid during the period beginning May 30, 2000 and ending
19    on January 1, 2008 (the effective date of Public Act
20    95-88).
21        (28) Computers and communications equipment utilized
22    for any hospital purpose and equipment used in the
23    diagnosis, analysis, or treatment of hospital patients
24    sold to a lessor who leases the equipment, under a lease of
25    one year or longer executed or in effect at the time of the
26    purchase, to a hospital that has been issued an active tax

 

 

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1    exemption identification number by the Department under
2    Section 1g of this Act.
3        (29) Personal property sold to a lessor who leases the
4    property, under a lease of one year or longer executed or
5    in effect at the time of the purchase, to a governmental
6    body that has been issued an active tax exemption
7    identification number by the Department under Section 1g
8    of this Act.
9        (30) Beginning with taxable years ending on or after
10    December 31, 1995 and ending with taxable years ending on
11    or before December 31, 2004, personal property that is
12    donated for disaster relief to be used in a State or
13    federally declared disaster area in Illinois or bordering
14    Illinois by a manufacturer or retailer that is registered
15    in this State to a corporation, society, association,
16    foundation, or institution that has been issued a sales
17    tax exemption identification number by the Department that
18    assists victims of the disaster who reside within the
19    declared disaster area.
20        (31) Beginning with taxable years ending on or after
21    December 31, 1995 and ending with taxable years ending on
22    or before December 31, 2004, personal property that is
23    used in the performance of infrastructure repairs in this
24    State, including but not limited to municipal roads and
25    streets, access roads, bridges, sidewalks, waste disposal
26    systems, water and sewer line extensions, water

 

 

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1    distribution and purification facilities, storm water
2    drainage and retention facilities, and sewage treatment
3    facilities, resulting from a State or federally declared
4    disaster in Illinois or bordering Illinois when such
5    repairs are initiated on facilities located in the
6    declared disaster area within 6 months after the disaster.
7        (32) Beginning July 1, 1999, game or game birds sold
8    at a "game breeding and hunting preserve area" as that
9    term is used in the Wildlife Code. This paragraph is
10    exempt from the provisions of Section 2-70.
11        (33) A motor vehicle, as that term is defined in
12    Section 1-146 of the Illinois Vehicle Code, that is
13    donated to a corporation, limited liability company,
14    society, association, foundation, or institution that is
15    determined by the Department to be organized and operated
16    exclusively for educational purposes. For purposes of this
17    exemption, "a corporation, limited liability company,
18    society, association, foundation, or institution organized
19    and operated exclusively for educational purposes" means
20    all tax-supported public schools, private schools that
21    offer systematic instruction in useful branches of
22    learning by methods common to public schools and that
23    compare favorably in their scope and intensity with the
24    course of study presented in tax-supported schools, and
25    vocational or technical schools or institutes organized
26    and operated exclusively to provide a course of study of

 

 

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1    not less than 6 weeks duration and designed to prepare
2    individuals to follow a trade or to pursue a manual,
3    technical, mechanical, industrial, business, or commercial
4    occupation.
5        (34) Beginning January 1, 2000, personal property,
6    including food, purchased through fundraising events for
7    the benefit of a public or private elementary or secondary
8    school, a group of those schools, or one or more school
9    districts if the events are sponsored by an entity
10    recognized by the school district that consists primarily
11    of volunteers and includes parents and teachers of the
12    school children. This paragraph does not apply to
13    fundraising events (i) for the benefit of private home
14    instruction or (ii) for which the fundraising entity
15    purchases the personal property sold at the events from
16    another individual or entity that sold the property for
17    the purpose of resale by the fundraising entity and that
18    profits from the sale to the fundraising entity. This
19    paragraph is exempt from the provisions of Section 2-70.
20        (35) Beginning January 1, 2000 and through December
21    31, 2001, new or used automatic vending machines that
22    prepare and serve hot food and beverages, including
23    coffee, soup, and other items, and replacement parts for
24    these machines. Beginning January 1, 2002 and through June
25    30, 2003, machines and parts for machines used in
26    commercial, coin-operated amusement and vending business

 

 

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1    if a use or occupation tax is paid on the gross receipts
2    derived from the use of the commercial, coin-operated
3    amusement and vending machines. This paragraph is exempt
4    from the provisions of Section 2-70.
5        (35-5) Beginning August 23, 2001 and through June 30,
6    2016, food for human consumption that is to be consumed
7    off the premises where it is sold (other than alcoholic
8    beverages, soft drinks, and food that has been prepared
9    for immediate consumption) and prescription and
10    nonprescription medicines, drugs, medical appliances, and
11    insulin, urine testing materials, syringes, and needles
12    used by diabetics, for human use, when purchased for use
13    by a person receiving medical assistance under Article V
14    of the Illinois Public Aid Code who resides in a licensed
15    long-term care facility, as defined in the Nursing Home
16    Care Act, or a licensed facility as defined in the ID/DD
17    Community Care Act, the MC/DD Act, or the Specialized
18    Mental Health Rehabilitation Act of 2013.
19        (36) Beginning August 2, 2001, computers and
20    communications equipment utilized for any hospital purpose
21    and equipment used in the diagnosis, analysis, or
22    treatment of hospital patients sold to a lessor who leases
23    the equipment, under a lease of one year or longer
24    executed or in effect at the time of the purchase, to a
25    hospital that has been issued an active tax exemption
26    identification number by the Department under Section 1g

 

 

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1    of this Act. This paragraph is exempt from the provisions
2    of Section 2-70.
3        (37) Beginning August 2, 2001, personal property sold
4    to a lessor who leases the property, under a lease of one
5    year or longer executed or in effect at the time of the
6    purchase, to a governmental body that has been issued an
7    active tax exemption identification number by the
8    Department under Section 1g of this Act. This paragraph is
9    exempt from the provisions of Section 2-70.
10        (38) Beginning on January 1, 2002 and through June 30,
11    2016, tangible personal property purchased from an
12    Illinois retailer by a taxpayer engaged in centralized
13    purchasing activities in Illinois who will, upon receipt
14    of the property in Illinois, temporarily store the
15    property in Illinois (i) for the purpose of subsequently
16    transporting it outside this State for use or consumption
17    thereafter solely outside this State or (ii) for the
18    purpose of being processed, fabricated, or manufactured
19    into, attached to, or incorporated into other tangible
20    personal property to be transported outside this State and
21    thereafter used or consumed solely outside this State. The
22    Director of Revenue shall, pursuant to rules adopted in
23    accordance with the Illinois Administrative Procedure Act,
24    issue a permit to any taxpayer in good standing with the
25    Department who is eligible for the exemption under this
26    paragraph (38). The permit issued under this paragraph

 

 

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1    (38) shall authorize the holder, to the extent and in the
2    manner specified in the rules adopted under this Act, to
3    purchase tangible personal property from a retailer exempt
4    from the taxes imposed by this Act. Taxpayers shall
5    maintain all necessary books and records to substantiate
6    the use and consumption of all such tangible personal
7    property outside of the State of Illinois.
8        (39) Beginning January 1, 2008, tangible personal
9    property used in the construction or maintenance of a
10    community water supply, as defined under Section 3.145 of
11    the Environmental Protection Act, that is operated by a
12    not-for-profit corporation that holds a valid water supply
13    permit issued under Title IV of the Environmental
14    Protection Act. This paragraph is exempt from the
15    provisions of Section 2-70.
16        (40) Beginning January 1, 2010 and continuing through
17    December 31, 2024, materials, parts, equipment,
18    components, and furnishings incorporated into or upon an
19    aircraft as part of the modification, refurbishment,
20    completion, replacement, repair, or maintenance of the
21    aircraft. This exemption includes consumable supplies used
22    in the modification, refurbishment, completion,
23    replacement, repair, and maintenance of aircraft. However,
24    until January 1, 2024, this exemption , but excludes any
25    materials, parts, equipment, components, and consumable
26    supplies used in the modification, replacement, repair,

 

 

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

 

 

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1    conduct operations in accordance with Part 145 of the
2    Federal Aviation Regulations; and (B) persons who engage
3    in the modification, replacement, repair, and maintenance
4    of aircraft engines or power plants without regard to
5    whether or not those persons meet the qualifications of
6    item (A).
7        The changes made to this paragraph (40) by Public Act
8    98-534 are declarative of existing law. It is the intent
9    of the General Assembly that the exemption under this
10    paragraph (40) applies continuously from January 1, 2010
11    through December 31, 2024; however, no claim for credit or
12    refund is allowed for taxes paid as a result of the
13    disallowance of this exemption on or after January 1, 2015
14    and prior to February 5, 2020 (the effective date of
15    Public Act 101-629) this amendatory Act of the 101st
16    General Assembly.
17        (41) Tangible personal property sold to a
18    public-facilities corporation, as described in Section
19    11-65-10 of the Illinois Municipal Code, for purposes of
20    constructing or furnishing a municipal convention hall,
21    but only if the legal title to the municipal convention
22    hall is transferred to the municipality without any
23    further consideration by or on behalf of the municipality
24    at the time of the completion of the municipal convention
25    hall or upon the retirement or redemption of any bonds or
26    other debt instruments issued by the public-facilities

 

 

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1    corporation in connection with the development of the
2    municipal convention hall. This exemption includes
3    existing public-facilities corporations as provided in
4    Section 11-65-25 of the Illinois Municipal Code. This
5    paragraph is exempt from the provisions of Section 2-70.
6        (42) Beginning January 1, 2017 and through December
7    31, 2026, menstrual pads, tampons, and menstrual cups.
8        (43) Merchandise that is subject to the Rental
9    Purchase Agreement Occupation and Use Tax. The purchaser
10    must certify that the item is purchased to be rented
11    subject to a rental purchase agreement, as defined in the
12    Rental Purchase Agreement Act, and provide proof of
13    registration under the Rental Purchase Agreement
14    Occupation and Use Tax Act. This paragraph is exempt from
15    the provisions of Section 2-70.
16        (44) Qualified tangible personal property used in the
17    construction or operation of a data center that has been
18    granted a certificate of exemption by the Department of
19    Commerce and Economic Opportunity, whether that tangible
20    personal property is purchased by the owner, operator, or
21    tenant of the data center or by a contractor or
22    subcontractor of the owner, operator, or tenant. Data
23    centers that would have qualified for a certificate of
24    exemption prior to January 1, 2020 had Public Act 101-31
25    this amendatory Act of the 101st General Assembly been in
26    effect, may apply for and obtain an exemption for

 

 

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1    subsequent purchases of computer equipment or enabling
2    software purchased or leased to upgrade, supplement, or
3    replace computer equipment or enabling software purchased
4    or leased in the original investment that would have
5    qualified.
6        The Department of Commerce and Economic Opportunity
7    shall grant a certificate of exemption under this item
8    (44) to qualified data centers as defined by Section
9    605-1025 of the Department of Commerce and Economic
10    Opportunity Law of the Civil Administrative Code of
11    Illinois.
12        For the purposes of this item (44):
13            "Data center" means a building or a series of
14        buildings rehabilitated or constructed to house
15        working servers in one physical location or multiple
16        sites within the State of Illinois.
17            "Qualified tangible personal property" means:
18        electrical systems and equipment; climate control and
19        chilling equipment and systems; mechanical systems and
20        equipment; monitoring and secure systems; emergency
21        generators; hardware; computers; servers; data storage
22        devices; network connectivity equipment; racks;
23        cabinets; telecommunications cabling infrastructure;
24        raised floor systems; peripheral components or
25        systems; software; mechanical, electrical, or plumbing
26        systems; battery systems; cooling systems and towers;

 

 

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1        temperature control systems; other cabling; and other
2        data center infrastructure equipment and systems
3        necessary to operate qualified tangible personal
4        property, including fixtures; and component parts of
5        any of the foregoing, including installation,
6        maintenance, repair, refurbishment, and replacement of
7        qualified tangible personal property to generate,
8        transform, transmit, distribute, or manage electricity
9        necessary to operate qualified tangible personal
10        property; and all other tangible personal property
11        that is essential to the operations of a computer data
12        center. The term "qualified tangible personal
13        property" also includes building materials physically
14        incorporated into the qualifying data center. To
15        document the exemption allowed under this Section, the
16        retailer must obtain from the purchaser a copy of the
17        certificate of eligibility issued by the Department of
18        Commerce and Economic Opportunity.
19        This item (44) is exempt from the provisions of
20    Section 2-70.
21        (45) Beginning January 1, 2020 and through December
22    31, 2020, sales of tangible personal property made by a
23    marketplace seller over a marketplace for which tax is due
24    under this Act but for which use tax has been collected and
25    remitted to the Department by a marketplace facilitator
26    under Section 2d of the Use Tax Act are exempt from tax

 

 

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1    under this Act. A marketplace seller claiming this
2    exemption shall maintain books and records demonstrating
3    that the use tax on such sales has been collected and
4    remitted by a marketplace facilitator. Marketplace sellers
5    that have properly remitted tax under this Act on such
6    sales may file a claim for credit as provided in Section 6
7    of this Act. No claim is allowed, however, for such taxes
8    for which a credit or refund has been issued to the
9    marketplace facilitator under the Use Tax Act, or for
10    which the marketplace facilitator has filed a claim for
11    credit or refund under the Use Tax Act.
12        (46) Beginning July 1, 2022, breast pumps, breast pump
13    collection and storage supplies, and breast pump kits.
14    This item (46) is exempt from the provisions of Section
15    2-70. As used in this item (46):
16        "Breast pump" means an electrically controlled or
17    manually controlled pump device designed or marketed to be
18    used to express milk from a human breast during lactation,
19    including the pump device and any battery, AC adapter, or
20    other power supply unit that is used to power the pump
21    device and is packaged and sold with the pump device at the
22    time of sale.
23        "Breast pump collection and storage supplies" means
24    items of tangible personal property designed or marketed
25    to be used in conjunction with a breast pump to collect
26    milk expressed from a human breast and to store collected

 

 

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

 

 

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1    manufacturer or distributor.
2        (47) (46) Tangible personal property sold by or on
3    behalf of the State Treasurer pursuant to the Revised
4    Uniform Unclaimed Property Act. This item (47) (46) is
5    exempt from the provisions of Section 2-70.
6(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
7101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
88-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
9102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
10eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.