Rep. Curtis J. Tarver, II
Filed: 5/19/2023
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1 | AMENDMENT TO SENATE BILL 1963
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2 | AMENDMENT NO. ______. Amend Senate Bill 1963 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "ARTICLE 5. AIRCRAFT ENGINES | ||||||
5 | Section 5-5. The Use Tax Act is amended by changing | ||||||
6 | Section 3-5 as follows:
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7 | (35 ILCS 105/3-5)
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8 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
9 | personal property is exempt from the tax imposed by this Act:
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10 | (1) Personal property purchased from a corporation, | ||||||
11 | society, association,
foundation, institution, or | ||||||
12 | organization, other than a limited liability
company, that is | ||||||
13 | organized and operated as a not-for-profit service enterprise
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14 | for the benefit of persons 65 years of age or older if the | ||||||
15 | personal property was not purchased by the enterprise for the |
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1 | purpose of resale by the
enterprise.
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2 | (2) Personal property purchased by a not-for-profit | ||||||
3 | Illinois county
fair association for use in conducting, | ||||||
4 | operating, or promoting the
county fair.
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5 | (3) Personal property purchased by a not-for-profit
arts | ||||||
6 | or cultural organization that establishes, by proof required | ||||||
7 | by the
Department by
rule, that it has received an exemption | ||||||
8 | under Section 501(c)(3) of the Internal
Revenue Code and that | ||||||
9 | is organized and operated primarily for the
presentation
or | ||||||
10 | support of arts or cultural programming, activities, or | ||||||
11 | services. These
organizations include, but are not limited to, | ||||||
12 | music and dramatic arts
organizations such as symphony | ||||||
13 | orchestras and theatrical groups, arts and
cultural service | ||||||
14 | organizations, local arts councils, visual arts organizations,
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15 | and media arts organizations.
On and after July 1, 2001 (the | ||||||
16 | effective date of Public Act 92-35), however, an entity | ||||||
17 | otherwise eligible for this exemption shall not
make tax-free | ||||||
18 | purchases unless it has an active identification number issued | ||||||
19 | by
the Department.
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20 | (4) Personal property purchased by a governmental body, by | ||||||
21 | a
corporation, society, association, foundation, or | ||||||
22 | institution organized and
operated exclusively for charitable, | ||||||
23 | religious, or educational purposes, or
by a not-for-profit | ||||||
24 | corporation, society, association, foundation,
institution, or | ||||||
25 | organization that has no compensated officers or employees
and | ||||||
26 | that is organized and operated primarily for the recreation of |
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1 | persons
55 years of age or older. A limited liability company | ||||||
2 | may qualify for the
exemption under this paragraph only if the | ||||||
3 | limited liability company is
organized and operated | ||||||
4 | exclusively for educational purposes. On and after July
1, | ||||||
5 | 1987, however, no entity otherwise eligible for this exemption | ||||||
6 | shall make
tax-free purchases unless it has an active | ||||||
7 | exemption identification number
issued by the Department.
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8 | (5) Until July 1, 2003, a passenger car that is a | ||||||
9 | replacement vehicle to
the extent that the
purchase price of | ||||||
10 | the car is subject to the Replacement Vehicle Tax.
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11 | (6) Until July 1, 2003 and beginning again on September 1, | ||||||
12 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
13 | equipment, including
repair and replacement
parts, both new | ||||||
14 | and used, and including that manufactured on special order,
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15 | certified by the purchaser to be used primarily for graphic | ||||||
16 | arts production,
and including machinery and equipment | ||||||
17 | purchased for lease.
Equipment includes chemicals or chemicals | ||||||
18 | acting as catalysts but only if
the
chemicals or chemicals | ||||||
19 | acting as catalysts effect a direct and immediate change
upon | ||||||
20 | a graphic arts product. Beginning on July 1, 2017, graphic | ||||||
21 | arts machinery and equipment is included in the manufacturing | ||||||
22 | and assembling machinery and equipment exemption under | ||||||
23 | paragraph (18).
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24 | (7) Farm chemicals.
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25 | (8) Legal tender, currency, medallions, or gold or silver | ||||||
26 | coinage issued by
the State of Illinois, the government of the |
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1 | United States of America, or the
government of any foreign | ||||||
2 | country, and bullion.
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3 | (9) Personal property purchased from a teacher-sponsored | ||||||
4 | student
organization affiliated with an elementary or | ||||||
5 | secondary school located in
Illinois.
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6 | (10) A motor vehicle that is used for automobile renting, | ||||||
7 | as defined in the
Automobile Renting Occupation and Use Tax | ||||||
8 | Act.
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9 | (11) Farm machinery and equipment, both new and used,
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10 | including that manufactured on special order, certified by the | ||||||
11 | purchaser
to be used primarily for production agriculture or | ||||||
12 | State or federal
agricultural programs, including individual | ||||||
13 | replacement parts for
the machinery and equipment, including | ||||||
14 | machinery and equipment
purchased
for lease,
and including | ||||||
15 | implements of husbandry defined in Section 1-130 of
the | ||||||
16 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
17 | chemical and
fertilizer spreaders, and nurse wagons required | ||||||
18 | to be registered
under Section 3-809 of the Illinois Vehicle | ||||||
19 | Code,
but excluding other motor
vehicles required to be
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20 | registered under the Illinois Vehicle Code.
Horticultural | ||||||
21 | polyhouses or hoop houses used for propagating, growing, or
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22 | overwintering plants shall be considered farm machinery and | ||||||
23 | equipment under
this item (11).
Agricultural chemical tender | ||||||
24 | tanks and dry boxes shall include units sold
separately from a | ||||||
25 | motor vehicle required to be licensed and units sold mounted
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26 | on a motor vehicle required to be licensed if the selling price |
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1 | of the tender
is separately stated.
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2 | Farm machinery and equipment shall include precision | ||||||
3 | farming equipment
that is
installed or purchased to be | ||||||
4 | installed on farm machinery and equipment
including, but not | ||||||
5 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
6 | or spreaders.
Precision farming equipment includes, but is not | ||||||
7 | limited to, soil testing
sensors, computers, monitors, | ||||||
8 | software, global positioning
and mapping systems, and other | ||||||
9 | such equipment.
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10 | Farm machinery and equipment also includes computers, | ||||||
11 | sensors, software, and
related equipment used primarily in the
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12 | computer-assisted operation of production agriculture | ||||||
13 | facilities, equipment,
and
activities such as, but not limited | ||||||
14 | to,
the collection, monitoring, and correlation of
animal and | ||||||
15 | crop data for the purpose of
formulating animal diets and | ||||||
16 | agricultural chemicals. This item (11) is exempt
from the | ||||||
17 | provisions of
Section 3-90.
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18 | (12) Until June 30, 2013, fuel and petroleum products sold | ||||||
19 | to or used by an air common
carrier, certified by the carrier | ||||||
20 | to be used for consumption, shipment, or
storage in the | ||||||
21 | conduct of its business as an air common carrier, for a
flight | ||||||
22 | destined for or returning from a location or locations
outside | ||||||
23 | the United States without regard to previous or subsequent | ||||||
24 | domestic
stopovers.
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25 | Beginning July 1, 2013, fuel and petroleum products sold | ||||||
26 | to or used by an air carrier, certified by the carrier to be |
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1 | used for consumption, shipment, or storage in the conduct of | ||||||
2 | its business as an air common carrier, for a flight that (i) is | ||||||
3 | engaged in foreign trade or is engaged in trade between the | ||||||
4 | United States and any of its possessions and (ii) transports | ||||||
5 | at least one individual or package for hire from the city of | ||||||
6 | origination to the city of final destination on the same | ||||||
7 | aircraft, without regard to a change in the flight number of | ||||||
8 | that aircraft. | ||||||
9 | (13) Proceeds of mandatory service charges separately
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10 | stated on customers' bills for the purchase and consumption of | ||||||
11 | food and
beverages purchased at retail from a retailer, to the | ||||||
12 | extent that the proceeds
of the service charge are in fact | ||||||
13 | turned over as tips or as a substitute
for tips to the | ||||||
14 | employees who participate directly in preparing, serving,
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15 | hosting or cleaning up the food or beverage function with | ||||||
16 | respect to which
the service charge is imposed.
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17 | (14) Until July 1, 2003, oil field exploration, drilling, | ||||||
18 | and production
equipment,
including (i) rigs and parts of | ||||||
19 | rigs, rotary
rigs, cable tool rigs, and workover rigs, (ii) | ||||||
20 | pipe and tubular goods,
including casing and drill strings, | ||||||
21 | (iii) pumps and pump-jack units, (iv)
storage tanks and flow | ||||||
22 | lines, (v) any individual replacement part for oil
field | ||||||
23 | exploration, drilling, and production equipment, and (vi) | ||||||
24 | machinery and
equipment purchased
for lease; but excluding | ||||||
25 | motor vehicles required to be registered under the
Illinois | ||||||
26 | Vehicle Code.
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1 | (15) Photoprocessing machinery and equipment, including | ||||||
2 | repair and
replacement parts, both new and used, including | ||||||
3 | that
manufactured on special order, certified by the purchaser | ||||||
4 | to be used
primarily for photoprocessing, and including
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5 | photoprocessing machinery and equipment purchased for lease.
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6 | (16) Until July 1, 2028, coal and aggregate exploration, | ||||||
7 | mining, off-highway hauling,
processing, maintenance, and | ||||||
8 | reclamation equipment,
including replacement parts and | ||||||
9 | equipment, and
including equipment purchased for lease, but | ||||||
10 | excluding motor
vehicles required to be registered under the | ||||||
11 | Illinois Vehicle Code. The changes made to this Section by | ||||||
12 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
13 | for credit or refund is allowed on or after August 16, 2013 | ||||||
14 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
15 | during the period beginning July 1, 2003 and ending on August | ||||||
16 | 16, 2013 (the effective date of Public Act 98-456).
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17 | (17) Until July 1, 2003, distillation machinery and | ||||||
18 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
19 | retailer, certified by the user to be used
only for the | ||||||
20 | production of ethyl alcohol that will be used for consumption
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21 | as motor fuel or as a component of motor fuel for the personal | ||||||
22 | use of the
user, and not subject to sale or resale.
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23 | (18) Manufacturing and assembling machinery and equipment | ||||||
24 | used
primarily in the process of manufacturing or assembling | ||||||
25 | tangible
personal property for wholesale or retail sale or | ||||||
26 | lease, whether that sale
or lease is made directly by the |
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1 | manufacturer or by some other person,
whether the materials | ||||||
2 | used in the process are
owned by the manufacturer or some other | ||||||
3 | person, or whether that sale or
lease is made apart from or as | ||||||
4 | an incident to the seller's engaging in
the service occupation | ||||||
5 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
6 | other similar items of no commercial value on
special order | ||||||
7 | for a particular purchaser. The exemption provided by this | ||||||
8 | paragraph (18) includes production related tangible personal | ||||||
9 | property, as defined in Section 3-50, purchased on or after | ||||||
10 | July 1, 2019. The exemption provided by this paragraph (18) | ||||||
11 | does not include machinery and equipment used in (i) the | ||||||
12 | generation of electricity for wholesale or retail sale; (ii) | ||||||
13 | the generation or treatment of natural or artificial gas for | ||||||
14 | wholesale or retail sale that is delivered to customers | ||||||
15 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
16 | water for wholesale or retail sale that is delivered to | ||||||
17 | customers through pipes, pipelines, or mains. The provisions | ||||||
18 | of Public Act 98-583 are declaratory of existing law as to the | ||||||
19 | meaning and scope of this exemption. Beginning on July 1, | ||||||
20 | 2017, the exemption provided by this paragraph (18) includes, | ||||||
21 | but is not limited to, graphic arts machinery and equipment, | ||||||
22 | as defined in paragraph (6) of this Section.
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23 | (19) Personal property delivered to a purchaser or | ||||||
24 | purchaser's donee
inside Illinois when the purchase order for | ||||||
25 | that personal property was
received by a florist located | ||||||
26 | outside Illinois who has a florist located
inside Illinois |
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1 | deliver the personal property.
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2 | (20) Semen used for artificial insemination of livestock | ||||||
3 | for direct
agricultural production.
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4 | (21) Horses, or interests in horses, registered with and | ||||||
5 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
6 | Registry of America, Appaloosa Horse Club, American Quarter
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7 | Horse Association, United States
Trotting Association, or | ||||||
8 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
9 | racing for prizes. This item (21) is exempt from the | ||||||
10 | provisions of Section 3-90, and the exemption provided for | ||||||
11 | under this item (21) applies for all periods beginning May 30, | ||||||
12 | 1995, but no claim for credit or refund is allowed on or after | ||||||
13 | January 1, 2008
for such taxes paid during the period | ||||||
14 | beginning May 30, 2000 and ending on January 1, 2008.
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15 | (22) Computers and communications equipment utilized for | ||||||
16 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
17 | analysis, or treatment of hospital patients purchased by a | ||||||
18 | lessor who leases
the
equipment, under a lease of one year or | ||||||
19 | longer executed or in effect at the
time the lessor would | ||||||
20 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
21 | hospital
that has been issued an active tax exemption | ||||||
22 | identification number by
the
Department under Section 1g of | ||||||
23 | the Retailers' Occupation Tax Act. If the
equipment is leased | ||||||
24 | in a manner that does not qualify for
this exemption or is used | ||||||
25 | in any other non-exempt manner, the lessor
shall be liable for | ||||||
26 | the
tax imposed under this Act or the Service Use Tax Act, as |
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1 | the case may
be, based on the fair market value of the property | ||||||
2 | at the time the
non-qualifying use occurs. No lessor shall | ||||||
3 | collect or attempt to collect an
amount (however
designated) | ||||||
4 | that purports to reimburse that lessor for the tax imposed by | ||||||
5 | this
Act or the Service Use Tax Act, as the case may be, if the | ||||||
6 | tax has not been
paid by the lessor. If a lessor improperly | ||||||
7 | collects any such amount from the
lessee, the lessee shall | ||||||
8 | have a legal right to claim a refund of that amount
from the | ||||||
9 | lessor. If, however, that amount is not refunded to the lessee | ||||||
10 | for
any reason, the lessor is liable to pay that amount to the | ||||||
11 | Department.
| ||||||
12 | (23) Personal property purchased by a lessor who leases | ||||||
13 | the
property, under
a
lease of
one year or longer executed or | ||||||
14 | in effect at the time
the lessor would otherwise be subject to | ||||||
15 | the tax imposed by this Act,
to a governmental body
that has | ||||||
16 | been issued an active sales tax exemption identification | ||||||
17 | number by the
Department under Section 1g of the Retailers' | ||||||
18 | Occupation Tax Act.
If the
property is leased in a manner that | ||||||
19 | does not qualify for
this exemption
or used in any other | ||||||
20 | non-exempt manner, the lessor shall be liable for the
tax | ||||||
21 | imposed under this Act or the Service Use Tax Act, as the case | ||||||
22 | may
be, based on the fair market value of the property at the | ||||||
23 | time the
non-qualifying use occurs. No lessor shall collect or | ||||||
24 | attempt to collect an
amount (however
designated) that | ||||||
25 | purports to reimburse that lessor for the tax imposed by this
| ||||||
26 | Act or the Service Use Tax Act, as the case may be, if the tax |
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1 | has not been
paid by the lessor. If a lessor improperly | ||||||
2 | collects any such amount from the
lessee, the lessee shall | ||||||
3 | have a legal right to claim a refund of that amount
from the | ||||||
4 | lessor. If, however, that amount is not refunded to the lessee | ||||||
5 | for
any reason, the lessor is liable to pay that amount to the | ||||||
6 | Department.
| ||||||
7 | (24) Beginning with taxable years ending on or after | ||||||
8 | December
31, 1995
and
ending with taxable years ending on or | ||||||
9 | before December 31, 2004,
personal property that is
donated | ||||||
10 | for disaster relief to be used in a State or federally declared
| ||||||
11 | disaster area in Illinois or bordering Illinois by a | ||||||
12 | manufacturer or retailer
that is registered in this State to a | ||||||
13 | corporation, society, association,
foundation, or institution | ||||||
14 | that has been issued a sales tax exemption
identification | ||||||
15 | number by the Department that assists victims of the disaster
| ||||||
16 | who reside within the declared disaster area.
| ||||||
17 | (25) Beginning with taxable years ending on or after | ||||||
18 | December
31, 1995 and
ending with taxable years ending on or | ||||||
19 | before December 31, 2004, personal
property that is used in | ||||||
20 | the performance of infrastructure repairs in this
State, | ||||||
21 | including but not limited to municipal roads and streets, | ||||||
22 | access roads,
bridges, sidewalks, waste disposal systems, | ||||||
23 | water and sewer line extensions,
water distribution and | ||||||
24 | purification facilities, storm water drainage and
retention | ||||||
25 | facilities, and sewage treatment facilities, resulting from a | ||||||
26 | State
or federally declared disaster in Illinois or bordering |
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| |||||||
1 | Illinois when such
repairs are initiated on facilities located | ||||||
2 | in the declared disaster area
within 6 months after the | ||||||
3 | disaster.
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4 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
5 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
6 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
7 | provisions
of
Section 3-90.
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8 | (27) A motor vehicle, as that term is defined in Section | ||||||
9 | 1-146
of the
Illinois
Vehicle Code, that is donated to a | ||||||
10 | corporation, limited liability company,
society, association, | ||||||
11 | foundation, or institution that is determined by the
| ||||||
12 | Department to be organized and operated exclusively for | ||||||
13 | educational purposes.
For purposes of this exemption, "a | ||||||
14 | corporation, limited liability company,
society, association, | ||||||
15 | foundation, or institution organized and operated
exclusively | ||||||
16 | for educational purposes" means all tax-supported public | ||||||
17 | schools,
private schools that offer systematic instruction in | ||||||
18 | useful branches of
learning by methods common to public | ||||||
19 | schools and that compare favorably in
their scope and | ||||||
20 | intensity with the course of study presented in tax-supported
| ||||||
21 | schools, and vocational or technical schools or institutes | ||||||
22 | organized and
operated exclusively to provide a course of | ||||||
23 | study of not less than 6 weeks
duration and designed to prepare | ||||||
24 | individuals to follow a trade or to pursue a
manual, | ||||||
25 | technical, mechanical, industrial, business, or commercial
| ||||||
26 | occupation.
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1 | (28) Beginning January 1, 2000, personal property, | ||||||
2 | including
food,
purchased through fundraising
events for the | ||||||
3 | benefit of
a public or private elementary or
secondary school, | ||||||
4 | a group of those schools, or one or more school
districts if | ||||||
5 | the events are
sponsored by an entity recognized by the school | ||||||
6 | district that consists
primarily of volunteers and includes
| ||||||
7 | parents and teachers of the school children. This paragraph | ||||||
8 | does not apply
to fundraising
events (i) for the benefit of | ||||||
9 | private home instruction or (ii)
for which the fundraising | ||||||
10 | entity purchases the personal property sold at
the events from | ||||||
11 | another individual or entity that sold the property for the
| ||||||
12 | purpose of resale by the fundraising entity and that
profits | ||||||
13 | from the sale to the
fundraising entity. This paragraph is | ||||||
14 | exempt
from the provisions
of Section 3-90.
| ||||||
15 | (29) Beginning January 1, 2000 and through December 31, | ||||||
16 | 2001, new or
used automatic vending
machines that prepare and | ||||||
17 | serve hot food and beverages, including coffee, soup,
and
| ||||||
18 | other items, and replacement parts for these machines.
| ||||||
19 | Beginning January 1,
2002 and through June 30, 2003, machines | ||||||
20 | and parts for machines used in
commercial, coin-operated | ||||||
21 | amusement and vending business if a use or occupation
tax is | ||||||
22 | paid on the gross receipts derived from the use of the | ||||||
23 | commercial,
coin-operated amusement and vending machines.
This
| ||||||
24 | paragraph
is exempt from the provisions of Section 3-90.
| ||||||
25 | (30) Beginning January 1, 2001 and through June 30, 2016, | ||||||
26 | food for human consumption that is to be consumed off the |
| |||||||
| |||||||
1 | premises
where it is sold (other than alcoholic beverages, | ||||||
2 | soft drinks, and food that
has been prepared for immediate | ||||||
3 | consumption) and prescription and
nonprescription medicines, | ||||||
4 | drugs, medical appliances, and insulin, urine
testing | ||||||
5 | materials, syringes, and needles used by diabetics, for human | ||||||
6 | use, when
purchased for use by a person receiving medical | ||||||
7 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
8 | resides in a licensed long-term care facility,
as defined in | ||||||
9 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
10 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
11 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
12 | (31) Beginning on August 2, 2001 (the effective date of | ||||||
13 | Public Act 92-227),
computers and communications equipment
| ||||||
14 | utilized for any hospital purpose and equipment used in the | ||||||
15 | diagnosis,
analysis, or treatment of hospital patients | ||||||
16 | purchased by a lessor who leases
the equipment, under a lease | ||||||
17 | of one year or longer executed or in effect at the
time the | ||||||
18 | lessor would otherwise be subject to the tax imposed by this | ||||||
19 | Act, to a
hospital that has been issued an active tax exemption | ||||||
20 | identification number by
the Department under Section 1g of | ||||||
21 | the Retailers' Occupation Tax Act. If the
equipment is leased | ||||||
22 | in a manner that does not qualify for this exemption or is
used | ||||||
23 | in any other nonexempt manner, the lessor shall be liable for | ||||||
24 | the tax
imposed under this Act or the Service Use Tax Act, as | ||||||
25 | the case may be, based on
the fair market value of the property | ||||||
26 | at the time the nonqualifying use
occurs. No lessor shall |
| |||||||
| |||||||
1 | collect or attempt to collect an amount (however
designated) | ||||||
2 | that purports to reimburse that lessor for the tax imposed by | ||||||
3 | this
Act or the Service Use Tax Act, as the case may be, if the | ||||||
4 | tax has not been
paid by the lessor. If a lessor improperly | ||||||
5 | collects any such amount from the
lessee, the lessee shall | ||||||
6 | have a legal right to claim a refund of that amount
from the | ||||||
7 | lessor. If, however, that amount is not refunded to the lessee | ||||||
8 | for
any reason, the lessor is liable to pay that amount to the | ||||||
9 | Department.
This paragraph is exempt from the provisions of | ||||||
10 | Section 3-90.
| ||||||
11 | (32) Beginning on August 2, 2001 (the effective date of | ||||||
12 | Public Act 92-227),
personal property purchased by a lessor | ||||||
13 | who leases the property,
under a lease of one year or longer | ||||||
14 | executed or in effect at the time the
lessor would otherwise be | ||||||
15 | subject to the tax imposed by this Act, to a
governmental body | ||||||
16 | that has been issued an active sales tax exemption
| ||||||
17 | identification number by the Department under Section 1g of | ||||||
18 | the Retailers'
Occupation Tax Act. If the property is leased | ||||||
19 | in a manner that does not
qualify for this exemption or used in | ||||||
20 | any other nonexempt manner, the lessor
shall be liable for the | ||||||
21 | tax imposed under this Act or the Service Use Tax Act,
as the | ||||||
22 | case may be, based on the fair market value of the property at | ||||||
23 | the time
the nonqualifying use occurs. No lessor shall collect | ||||||
24 | or attempt to collect
an amount (however designated) that | ||||||
25 | purports to reimburse that lessor for the
tax imposed by this | ||||||
26 | Act or the Service Use Tax Act, as the case may be, if the
tax |
| |||||||
| |||||||
1 | has not been paid by the lessor. If a lessor improperly | ||||||
2 | collects any such
amount from the lessee, the lessee shall | ||||||
3 | have a legal right to claim a refund
of that amount from the | ||||||
4 | lessor. If, however, that amount is not refunded to
the lessee | ||||||
5 | for any reason, the lessor is liable to pay that amount to the
| ||||||
6 | Department. This paragraph is exempt from the provisions of | ||||||
7 | Section 3-90.
| ||||||
8 | (33) On and after July 1, 2003 and through June 30, 2004, | ||||||
9 | the use in this State of motor vehicles of
the second division | ||||||
10 | with a gross vehicle weight in excess of 8,000 pounds and
that | ||||||
11 | are subject to the commercial distribution fee imposed under | ||||||
12 | Section
3-815.1 of the Illinois Vehicle Code. Beginning on | ||||||
13 | July 1, 2004 and through June 30, 2005, the use in this State | ||||||
14 | of motor vehicles of the second division: (i) with a gross | ||||||
15 | vehicle weight rating in excess of 8,000 pounds; (ii) that are | ||||||
16 | subject to the commercial distribution fee imposed under | ||||||
17 | Section 3-815.1 of the Illinois Vehicle Code; and (iii) that | ||||||
18 | are primarily used for commercial purposes. Through June 30, | ||||||
19 | 2005, this exemption applies to repair and
replacement parts | ||||||
20 | added after the initial purchase of such a motor vehicle if
| ||||||
21 | that motor
vehicle is used in a manner that would qualify for | ||||||
22 | the rolling stock exemption
otherwise provided for in this | ||||||
23 | Act. For purposes of this paragraph, the term "used for | ||||||
24 | commercial purposes" means the transportation of persons or | ||||||
25 | property in furtherance of any commercial or industrial | ||||||
26 | enterprise, whether for-hire or not.
|
| |||||||
| |||||||
1 | (34) Beginning January 1, 2008, tangible personal property | ||||||
2 | used in the construction or maintenance of a community water | ||||||
3 | supply, as defined under Section 3.145 of the Environmental | ||||||
4 | Protection Act, that is operated by a not-for-profit | ||||||
5 | corporation that holds a valid water supply permit issued | ||||||
6 | under Title IV of the Environmental Protection Act. This | ||||||
7 | paragraph is exempt from the provisions of Section 3-90. | ||||||
8 | (35) Beginning January 1, 2010 and continuing through | ||||||
9 | December 31, 2029 December 31, 2024 , materials, parts, | ||||||
10 | equipment, components, and furnishings incorporated into or | ||||||
11 | upon an aircraft as part of the modification, refurbishment, | ||||||
12 | completion, replacement, repair, or maintenance of the | ||||||
13 | aircraft. This exemption includes consumable supplies used in | ||||||
14 | the modification, refurbishment, completion, replacement, | ||||||
15 | repair, and maintenance of aircraft . However, until January 1, | ||||||
16 | 2024, this exemption , but excludes any materials, parts, | ||||||
17 | equipment, components, and consumable supplies used in the | ||||||
18 | modification, replacement, repair, and maintenance of aircraft | ||||||
19 | engines or power plants, whether such engines or power plants | ||||||
20 | are installed or uninstalled upon any such aircraft. | ||||||
21 | "Consumable supplies" include, but are not limited to, | ||||||
22 | adhesive, tape, sandpaper, general purpose lubricants, | ||||||
23 | cleaning solution, latex gloves, and protective films. | ||||||
24 | Beginning January 1, 2010 and continuing through December | ||||||
25 | 31, 2023, this This exemption applies only to the use of | ||||||
26 | qualifying tangible personal property by persons who modify, |
| |||||||
| |||||||
1 | refurbish, complete, repair, replace, or maintain aircraft and | ||||||
2 | who (i) hold an Air Agency Certificate and are empowered to | ||||||
3 | operate an approved repair station by the Federal Aviation | ||||||
4 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
5 | operations in accordance with Part 145 of the Federal Aviation | ||||||
6 | Regulations. From January 1, 2024 through December 31, 2029, | ||||||
7 | this exemption applies only to the use of qualifying tangible | ||||||
8 | personal property by: (A) persons who modify, refurbish, | ||||||
9 | complete, repair, replace, or maintain aircraft and who (i) | ||||||
10 | hold an Air Agency Certificate and are empowered to operate an | ||||||
11 | approved repair station by the Federal Aviation | ||||||
12 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
13 | operations in accordance with Part 145 of the Federal Aviation | ||||||
14 | Regulations; and (B) persons who engage in the modification, | ||||||
15 | replacement, repair, and maintenance of aircraft engines or | ||||||
16 | power plants without regard to whether or not those persons | ||||||
17 | meet the qualifications of item (A). | ||||||
18 | The exemption does not include aircraft operated by a | ||||||
19 | commercial air carrier providing scheduled passenger air | ||||||
20 | service pursuant to authority issued under Part 121 or Part | ||||||
21 | 129 of the Federal Aviation Regulations. The changes made to | ||||||
22 | this paragraph (35) by Public Act 98-534 are declarative of | ||||||
23 | existing law. It is the intent of the General Assembly that the | ||||||
24 | exemption under this paragraph (35) applies continuously from | ||||||
25 | January 1, 2010 through December 31, 2024; however, no claim | ||||||
26 | for credit or refund is allowed for taxes paid as a result of |
| |||||||
| |||||||
1 | the disallowance of this exemption on or after January 1, 2015 | ||||||
2 | and prior to February 5, 2020 ( the effective date of Public Act | ||||||
3 | 101-629) this amendatory Act of the 101st General Assembly . | ||||||
4 | (36) Tangible personal property purchased by a | ||||||
5 | public-facilities corporation, as described in Section | ||||||
6 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
7 | constructing or furnishing a municipal convention hall, but | ||||||
8 | only if the legal title to the municipal convention hall is | ||||||
9 | transferred to the municipality without any further | ||||||
10 | consideration by or on behalf of the municipality at the time | ||||||
11 | of the completion of the municipal convention hall or upon the | ||||||
12 | retirement or redemption of any bonds or other debt | ||||||
13 | instruments issued by the public-facilities corporation in | ||||||
14 | connection with the development of the municipal convention | ||||||
15 | hall. This exemption includes existing public-facilities | ||||||
16 | corporations as provided in Section 11-65-25 of the Illinois | ||||||
17 | Municipal Code. This paragraph is exempt from the provisions | ||||||
18 | of Section 3-90. | ||||||
19 | (37) Beginning January 1, 2017 and through December 31, | ||||||
20 | 2026, menstrual pads, tampons, and menstrual cups. | ||||||
21 | (38) Merchandise that is subject to the Rental Purchase | ||||||
22 | Agreement Occupation and Use Tax. The purchaser must certify | ||||||
23 | that the item is purchased to be rented subject to a rental | ||||||
24 | purchase agreement, as defined in the Rental Purchase | ||||||
25 | Agreement Act, and provide proof of registration under the | ||||||
26 | Rental Purchase Agreement Occupation and Use Tax Act. This |
| |||||||
| |||||||
1 | paragraph is exempt from the provisions of Section 3-90. | ||||||
2 | (39) Tangible personal property purchased by a purchaser | ||||||
3 | who is exempt from the tax imposed by this Act by operation of | ||||||
4 | federal law. This paragraph is exempt from the provisions of | ||||||
5 | Section 3-90. | ||||||
6 | (40) Qualified tangible personal property used in the | ||||||
7 | construction or operation of a data center that has been | ||||||
8 | granted a certificate of exemption by the Department of | ||||||
9 | Commerce and Economic Opportunity, whether that tangible | ||||||
10 | personal property is purchased by the owner, operator, or | ||||||
11 | tenant of the data center or by a contractor or subcontractor | ||||||
12 | of the owner, operator, or tenant. Data centers that would | ||||||
13 | have qualified for a certificate of exemption prior to January | ||||||
14 | 1, 2020 had Public Act 101-31 been in effect may apply for and | ||||||
15 | obtain an exemption for subsequent purchases of computer | ||||||
16 | equipment or enabling software purchased or leased to upgrade, | ||||||
17 | supplement, or replace computer equipment or enabling software | ||||||
18 | purchased or leased in the original investment that would have | ||||||
19 | qualified. | ||||||
20 | The Department of Commerce and Economic Opportunity shall | ||||||
21 | grant a certificate of exemption under this item (40) to | ||||||
22 | qualified data centers as defined by Section 605-1025 of the | ||||||
23 | Department of Commerce and Economic Opportunity Law of the
| ||||||
24 | Civil Administrative Code of Illinois. | ||||||
25 | For the purposes of this item (40): | ||||||
26 | "Data center" means a building or a series of |
| |||||||
| |||||||
1 | buildings rehabilitated or constructed to house working | ||||||
2 | servers in one physical location or multiple sites within | ||||||
3 | the State of Illinois. | ||||||
4 | "Qualified tangible personal property" means: | ||||||
5 | electrical systems and equipment; climate control and | ||||||
6 | chilling equipment and systems; mechanical systems and | ||||||
7 | equipment; monitoring and secure systems; emergency | ||||||
8 | generators; hardware; computers; servers; data storage | ||||||
9 | devices; network connectivity equipment; racks; cabinets; | ||||||
10 | telecommunications cabling infrastructure; raised floor | ||||||
11 | systems; peripheral components or systems; software; | ||||||
12 | mechanical, electrical, or plumbing systems; battery | ||||||
13 | systems; cooling systems and towers; temperature control | ||||||
14 | systems; other cabling; and other data center | ||||||
15 | infrastructure equipment and systems necessary to operate | ||||||
16 | qualified tangible personal property, including fixtures; | ||||||
17 | and component parts of any of the foregoing, including | ||||||
18 | installation, maintenance, repair, refurbishment, and | ||||||
19 | replacement of qualified tangible personal property to | ||||||
20 | generate, transform, transmit, distribute, or manage | ||||||
21 | electricity necessary to operate qualified tangible | ||||||
22 | personal property; and all other tangible personal | ||||||
23 | property that is essential to the operations of a computer | ||||||
24 | data center. The term "qualified tangible personal | ||||||
25 | property" also includes building materials physically | ||||||
26 | incorporated in to the qualifying data center. To document |
| |||||||
| |||||||
1 | the exemption allowed under this Section, the retailer | ||||||
2 | must obtain from the purchaser a copy of the certificate | ||||||
3 | of eligibility issued by the Department of Commerce and | ||||||
4 | Economic Opportunity. | ||||||
5 | This item (40) is exempt from the provisions of Section | ||||||
6 | 3-90. | ||||||
7 | (41) Beginning July 1, 2022, breast pumps, breast pump | ||||||
8 | collection and storage supplies, and breast pump kits. This | ||||||
9 | item (41) is exempt from the provisions of Section 3-90. As | ||||||
10 | used in this item (41): | ||||||
11 | "Breast pump" means an electrically controlled or | ||||||
12 | manually controlled pump device designed or marketed to be | ||||||
13 | used to express milk from a human breast during lactation, | ||||||
14 | including the pump device and any battery, AC adapter, or | ||||||
15 | other power supply unit that is used to power the pump | ||||||
16 | device and is packaged and sold with the pump device at the | ||||||
17 | time of sale. | ||||||
18 | "Breast pump collection and storage supplies" means | ||||||
19 | items of tangible personal property designed or marketed | ||||||
20 | to be used in conjunction with a breast pump to collect | ||||||
21 | milk expressed from a human breast and to store collected | ||||||
22 | milk until it is ready for consumption. | ||||||
23 | "Breast pump collection and storage supplies" | ||||||
24 | includes, but is not limited to: breast shields and breast | ||||||
25 | shield connectors; breast pump tubes and tubing adapters; | ||||||
26 | breast pump valves and membranes; backflow protectors and |
| |||||||
| |||||||
1 | backflow protector adaptors; bottles and bottle caps | ||||||
2 | specific to the operation of the breast pump; and breast | ||||||
3 | milk storage bags. | ||||||
4 | "Breast pump collection and storage supplies" does not | ||||||
5 | include: (1) bottles and bottle caps not specific to the | ||||||
6 | operation of the breast pump; (2) breast pump travel bags | ||||||
7 | and other similar carrying accessories, including ice | ||||||
8 | packs, labels, and other similar products; (3) breast pump | ||||||
9 | cleaning supplies; (4) nursing bras, bra pads, breast | ||||||
10 | shells, and other similar products; and (5) creams, | ||||||
11 | ointments, and other similar products that relieve | ||||||
12 | breastfeeding-related symptoms or conditions of the | ||||||
13 | breasts or nipples, unless sold as part of a breast pump | ||||||
14 | kit that is pre-packaged by the breast pump manufacturer | ||||||
15 | or distributor. | ||||||
16 | "Breast pump kit" means a kit that: (1) contains no | ||||||
17 | more than a breast pump, breast pump collection and | ||||||
18 | storage supplies, a rechargeable battery for operating the | ||||||
19 | breast pump, a breastmilk cooler, bottle stands, ice | ||||||
20 | packs, and a breast pump carrying case; and (2) is | ||||||
21 | pre-packaged as a breast pump kit by the breast pump | ||||||
22 | manufacturer or distributor. | ||||||
23 | (42) (41) Tangible personal property sold by or on behalf | ||||||
24 | of the State Treasurer pursuant to the Revised Uniform | ||||||
25 | Unclaimed Property Act. This item (42) (41) is exempt from the | ||||||
26 | provisions of Section 3-90. |
| |||||||
| |||||||
1 | (Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; | ||||||
2 | 101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff. | ||||||
3 | 6-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22; | ||||||
4 | 102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026, | ||||||
5 | eff. 5-27-22; revised 8-1-22.)
| ||||||
6 | Section 5-10. The Service Use Tax Act is amended by | ||||||
7 | changing Section 3-5 as follows:
| ||||||
8 | (35 ILCS 110/3-5)
| ||||||
9 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
10 | personal property
is exempt from the tax imposed by this Act:
| ||||||
11 | (1) Personal property purchased from a corporation, | ||||||
12 | society,
association, foundation, institution, or | ||||||
13 | organization, other than a limited
liability company, that is | ||||||
14 | organized and operated as a not-for-profit service
enterprise | ||||||
15 | for the benefit of persons 65 years of age or older if the | ||||||
16 | personal
property was not purchased by the enterprise for the | ||||||
17 | purpose of resale by the
enterprise.
| ||||||
18 | (2) Personal property purchased by a non-profit Illinois | ||||||
19 | county fair
association for use in conducting, operating, or | ||||||
20 | promoting the county fair.
| ||||||
21 | (3) Personal property purchased by a not-for-profit arts
| ||||||
22 | or cultural
organization that establishes, by proof required | ||||||
23 | by the Department by rule,
that it has received an exemption | ||||||
24 | under Section 501(c)(3) of the Internal
Revenue Code and that |
| |||||||
| |||||||
1 | is organized and operated primarily for the
presentation
or | ||||||
2 | support of arts or cultural programming, activities, or | ||||||
3 | services. These
organizations include, but are not limited to, | ||||||
4 | music and dramatic arts
organizations such as symphony | ||||||
5 | orchestras and theatrical groups, arts and
cultural service | ||||||
6 | organizations, local arts councils, visual arts organizations,
| ||||||
7 | and media arts organizations.
On and after July 1, 2001 (the | ||||||
8 | effective date of Public Act 92-35), however, an entity | ||||||
9 | otherwise eligible for this exemption shall not
make tax-free | ||||||
10 | purchases unless it has an active identification number issued | ||||||
11 | by
the Department.
| ||||||
12 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
13 | coinage issued
by the State of Illinois, the government of the | ||||||
14 | United States of America,
or the government of any foreign | ||||||
15 | country, and bullion.
| ||||||
16 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
17 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
18 | equipment, including
repair and
replacement parts, both new | ||||||
19 | and used, and including that manufactured on
special order or | ||||||
20 | purchased for lease, certified by the purchaser to be used
| ||||||
21 | primarily for graphic arts production.
Equipment includes | ||||||
22 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
23 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
24 | immediate
change upon a graphic arts product. Beginning on | ||||||
25 | July 1, 2017, graphic arts machinery and equipment is included | ||||||
26 | in the manufacturing and assembling machinery and equipment |
| |||||||
| |||||||
1 | exemption under Section 2 of this Act.
| ||||||
2 | (6) Personal property purchased from a teacher-sponsored | ||||||
3 | student
organization affiliated with an elementary or | ||||||
4 | secondary school located
in Illinois.
| ||||||
5 | (7) Farm machinery and equipment, both new and used, | ||||||
6 | including that
manufactured on special order, certified by the | ||||||
7 | purchaser to be used
primarily for production agriculture or | ||||||
8 | State or federal agricultural
programs, including individual | ||||||
9 | replacement parts for the machinery and
equipment, including | ||||||
10 | machinery and equipment purchased for lease,
and including | ||||||
11 | implements of husbandry defined in Section 1-130 of
the | ||||||
12 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
13 | chemical and
fertilizer spreaders, and nurse wagons required | ||||||
14 | to be registered
under Section 3-809 of the Illinois Vehicle | ||||||
15 | Code,
but
excluding other motor vehicles required to be | ||||||
16 | registered under the Illinois
Vehicle Code.
Horticultural | ||||||
17 | polyhouses or hoop houses used for propagating, growing, or
| ||||||
18 | overwintering plants shall be considered farm machinery and | ||||||
19 | equipment under
this item (7).
Agricultural chemical tender | ||||||
20 | tanks and dry boxes shall include units sold
separately from a | ||||||
21 | motor vehicle required to be licensed and units sold mounted
| ||||||
22 | on a motor vehicle required to be licensed if the selling price | ||||||
23 | of the tender
is separately stated.
| ||||||
24 | Farm machinery and equipment shall include precision | ||||||
25 | farming equipment
that is
installed or purchased to be | ||||||
26 | installed on farm machinery and equipment
including, but not |
| |||||||
| |||||||
1 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
2 | or spreaders.
Precision farming equipment includes, but is not | ||||||
3 | limited to,
soil testing sensors, computers, monitors, | ||||||
4 | software, global positioning
and mapping systems, and other | ||||||
5 | such equipment.
| ||||||
6 | Farm machinery and equipment also includes computers, | ||||||
7 | sensors, software, and
related equipment used primarily in the
| ||||||
8 | computer-assisted operation of production agriculture | ||||||
9 | facilities, equipment,
and activities such as, but
not limited | ||||||
10 | to,
the collection, monitoring, and correlation of
animal and | ||||||
11 | crop data for the purpose of
formulating animal diets and | ||||||
12 | agricultural chemicals. This item (7) is exempt
from the | ||||||
13 | provisions of
Section 3-75.
| ||||||
14 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
15 | to or used by an air common
carrier, certified by the carrier | ||||||
16 | to be used for consumption, shipment, or
storage in the | ||||||
17 | conduct of its business as an air common carrier, for a
flight | ||||||
18 | destined for or returning from a location or locations
outside | ||||||
19 | the United States without regard to previous or subsequent | ||||||
20 | domestic
stopovers.
| ||||||
21 | Beginning July 1, 2013, fuel and petroleum products sold | ||||||
22 | to or used by an air carrier, certified by the carrier to be | ||||||
23 | used for consumption, shipment, or storage in the conduct of | ||||||
24 | its business as an air common carrier, for a flight that (i) is | ||||||
25 | engaged in foreign trade or is engaged in trade between the | ||||||
26 | United States and any of its possessions and (ii) transports |
| |||||||
| |||||||
1 | at least one individual or package for hire from the city of | ||||||
2 | origination to the city of final destination on the same | ||||||
3 | aircraft, without regard to a change in the flight number of | ||||||
4 | that aircraft. | ||||||
5 | (9) Proceeds of mandatory service charges separately | ||||||
6 | stated on
customers' bills for the purchase and consumption of | ||||||
7 | food and beverages
acquired as an incident to the purchase of a | ||||||
8 | service from a serviceman, to
the extent that the proceeds of | ||||||
9 | the service charge are in fact
turned over as tips or as a | ||||||
10 | substitute for tips to the employees who
participate directly | ||||||
11 | in preparing, serving, hosting or cleaning up the
food or | ||||||
12 | beverage function with respect to which the service charge is | ||||||
13 | imposed.
| ||||||
14 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
15 | and production
equipment, including
(i) rigs and parts of | ||||||
16 | rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) | ||||||
17 | pipe and tubular goods, including casing and
drill strings, | ||||||
18 | (iii) pumps and pump-jack units, (iv) storage tanks and flow
| ||||||
19 | lines, (v) any individual replacement part for oil field | ||||||
20 | exploration,
drilling, and production equipment, and (vi) | ||||||
21 | machinery and equipment purchased
for lease; but
excluding | ||||||
22 | motor vehicles required to be registered under the Illinois
| ||||||
23 | Vehicle Code.
| ||||||
24 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
25 | and
equipment, including repair and replacement parts, both | ||||||
26 | new and
used, including that manufactured on special order, |
| |||||||
| |||||||
1 | certified by the
purchaser to be used primarily for | ||||||
2 | photoprocessing, and including
photoprocessing machinery and | ||||||
3 | equipment purchased for lease.
| ||||||
4 | (12) Until July 1, 2028, coal and aggregate exploration, | ||||||
5 | mining, off-highway hauling,
processing,
maintenance, and | ||||||
6 | reclamation equipment, including
replacement parts and | ||||||
7 | equipment, and including
equipment purchased for lease, but | ||||||
8 | excluding motor vehicles required to be
registered under the | ||||||
9 | Illinois Vehicle Code. The changes made to this Section by | ||||||
10 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
11 | for credit or refund is allowed on or after August 16, 2013 | ||||||
12 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
13 | during the period beginning July 1, 2003 and ending on August | ||||||
14 | 16, 2013 (the effective date of Public Act 98-456).
| ||||||
15 | (13) Semen used for artificial insemination of livestock | ||||||
16 | for direct
agricultural production.
| ||||||
17 | (14) Horses, or interests in horses, registered with and | ||||||
18 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
19 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
20 | Horse Association, United States
Trotting Association, or | ||||||
21 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
22 | racing for prizes. This item (14) is exempt from the | ||||||
23 | provisions of Section 3-75, and the exemption provided for | ||||||
24 | under this item (14) applies for all periods beginning May 30, | ||||||
25 | 1995, but no claim for credit or refund is allowed on or after | ||||||
26 | January 1, 2008 (the effective date of Public Act 95-88) for |
| |||||||
| |||||||
1 | such taxes paid during the period beginning May 30, 2000 and | ||||||
2 | ending on January 1, 2008 (the effective date of Public Act | ||||||
3 | 95-88).
| ||||||
4 | (15) Computers and communications equipment utilized for | ||||||
5 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
6 | analysis, or treatment of hospital patients purchased by a | ||||||
7 | lessor who leases
the
equipment, under a lease of one year or | ||||||
8 | longer executed or in effect at the
time
the lessor would | ||||||
9 | otherwise be subject to the tax imposed by this Act,
to a
| ||||||
10 | hospital
that has been issued an active tax exemption | ||||||
11 | identification number by the
Department under Section 1g of | ||||||
12 | the Retailers' Occupation Tax Act.
If the
equipment is leased | ||||||
13 | in a manner that does not qualify for
this exemption
or is used | ||||||
14 | in any other non-exempt manner,
the lessor shall be liable for | ||||||
15 | the
tax imposed under this Act or the Use Tax Act, as the case | ||||||
16 | may
be, based on the fair market value of the property at the | ||||||
17 | time the
non-qualifying use occurs. No lessor shall collect or | ||||||
18 | attempt to collect an
amount (however
designated) that | ||||||
19 | purports to reimburse that lessor for the tax imposed by this
| ||||||
20 | Act or the Use Tax Act, as the case may be, if the tax has not | ||||||
21 | been
paid by the lessor. If a lessor improperly collects any | ||||||
22 | such amount from the
lessee, the lessee shall have a legal | ||||||
23 | right to claim a refund of that amount
from the lessor. If, | ||||||
24 | however, that amount is not refunded to the lessee for
any | ||||||
25 | reason, the lessor is liable to pay that amount to the | ||||||
26 | Department.
|
| |||||||
| |||||||
1 | (16) Personal property purchased by a lessor who leases | ||||||
2 | the
property, under
a
lease of one year or longer executed or | ||||||
3 | in effect at the time
the lessor would otherwise be subject to | ||||||
4 | the tax imposed by this Act,
to a governmental body
that has | ||||||
5 | been issued an active tax exemption identification number by | ||||||
6 | the
Department under Section 1g of the Retailers' Occupation | ||||||
7 | Tax Act.
If the
property is leased in a manner that does not | ||||||
8 | qualify for
this exemption
or is used in any other non-exempt | ||||||
9 | manner,
the lessor shall be liable for the
tax imposed under | ||||||
10 | this Act or the Use Tax Act, as the case may
be, based on the | ||||||
11 | fair market value of the property at the time the
| ||||||
12 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
13 | to collect an
amount (however
designated) that purports to | ||||||
14 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
15 | Use Tax Act, as the case may be, if the tax has not been
paid | ||||||
16 | by the lessor. If a lessor improperly collects any such amount | ||||||
17 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
18 | refund of that amount
from the lessor. If, however, that | ||||||
19 | amount is not refunded to the lessee for
any reason, the lessor | ||||||
20 | is liable to pay that amount to the Department.
| ||||||
21 | (17) Beginning with taxable years ending on or after | ||||||
22 | December
31,
1995
and
ending with taxable years ending on or | ||||||
23 | before December 31, 2004,
personal property that is
donated | ||||||
24 | for disaster relief to be used in a State or federally declared
| ||||||
25 | disaster area in Illinois or bordering Illinois by a | ||||||
26 | manufacturer or retailer
that is registered in this State to a |
| |||||||
| |||||||
1 | corporation, society, association,
foundation, or institution | ||||||
2 | that has been issued a sales tax exemption
identification | ||||||
3 | number by the Department that assists victims of the disaster
| ||||||
4 | who reside within the declared disaster area.
| ||||||
5 | (18) Beginning with taxable years ending on or after | ||||||
6 | December
31, 1995 and
ending with taxable years ending on or | ||||||
7 | before December 31, 2004, personal
property that is used in | ||||||
8 | the performance of infrastructure repairs in this
State, | ||||||
9 | including but not limited to municipal roads and streets, | ||||||
10 | access roads,
bridges, sidewalks, waste disposal systems, | ||||||
11 | water and sewer line extensions,
water distribution and | ||||||
12 | purification facilities, storm water drainage and
retention | ||||||
13 | facilities, and sewage treatment facilities, resulting from a | ||||||
14 | State
or federally declared disaster in Illinois or bordering | ||||||
15 | Illinois when such
repairs are initiated on facilities located | ||||||
16 | in the declared disaster area
within 6 months after the | ||||||
17 | disaster.
| ||||||
18 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
19 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
20 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
21 | provisions
of
Section 3-75.
| ||||||
22 | (20) A motor vehicle, as that term is defined in Section | ||||||
23 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
24 | corporation, limited liability
company, society, association, | ||||||
25 | foundation, or institution that is determined by
the | ||||||
26 | Department to be organized and operated exclusively for |
| |||||||
| |||||||
1 | educational
purposes. For purposes of this exemption, "a | ||||||
2 | corporation, limited liability
company, society, association, | ||||||
3 | foundation, or institution organized and
operated
exclusively | ||||||
4 | for educational purposes" means all tax-supported public | ||||||
5 | schools,
private schools that offer systematic instruction in | ||||||
6 | useful branches of
learning by methods common to public | ||||||
7 | schools and that compare favorably in
their scope and | ||||||
8 | intensity with the course of study presented in tax-supported
| ||||||
9 | schools, and vocational or technical schools or institutes | ||||||
10 | organized and
operated exclusively to provide a course of | ||||||
11 | study of not less than 6 weeks
duration and designed to prepare | ||||||
12 | individuals to follow a trade or to pursue a
manual, | ||||||
13 | technical, mechanical, industrial, business, or commercial
| ||||||
14 | occupation.
| ||||||
15 | (21) Beginning January 1, 2000, personal property, | ||||||
16 | including
food,
purchased through fundraising
events for the | ||||||
17 | benefit of
a public or private elementary or
secondary school, | ||||||
18 | a group of those schools, or one or more school
districts if | ||||||
19 | the events are
sponsored by an entity recognized by the school | ||||||
20 | district that consists
primarily of volunteers and includes
| ||||||
21 | parents and teachers of the school children. This paragraph | ||||||
22 | does not apply
to fundraising
events (i) for the benefit of | ||||||
23 | private home instruction or (ii)
for which the fundraising | ||||||
24 | entity purchases the personal property sold at
the events from | ||||||
25 | another individual or entity that sold the property for the
| ||||||
26 | purpose of resale by the fundraising entity and that
profits |
| |||||||
| |||||||
1 | from the sale to the
fundraising entity. This paragraph is | ||||||
2 | exempt
from the provisions
of Section 3-75.
| ||||||
3 | (22) Beginning January 1, 2000
and through December 31, | ||||||
4 | 2001, new or used automatic vending
machines that prepare and | ||||||
5 | serve hot food and beverages, including coffee, soup,
and
| ||||||
6 | other items, and replacement parts for these machines.
| ||||||
7 | Beginning January 1,
2002 and through June 30, 2003, machines | ||||||
8 | and parts for machines used in
commercial, coin-operated
| ||||||
9 | amusement
and vending business if a use or occupation tax is | ||||||
10 | paid on the gross receipts
derived from
the use of the | ||||||
11 | commercial, coin-operated amusement and vending machines.
This
| ||||||
12 | paragraph
is exempt from the provisions of Section 3-75.
| ||||||
13 | (23) Beginning August 23, 2001 and through June 30, 2016, | ||||||
14 | food for human consumption that is to be consumed off the
| ||||||
15 | premises
where it is sold (other than alcoholic beverages, | ||||||
16 | soft drinks, and food that
has been prepared for immediate | ||||||
17 | consumption) and prescription and
nonprescription medicines, | ||||||
18 | drugs, medical appliances, and insulin, urine
testing | ||||||
19 | materials, syringes, and needles used by diabetics, for human | ||||||
20 | use, when
purchased for use by a person receiving medical | ||||||
21 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
22 | resides in a licensed long-term care facility,
as defined in | ||||||
23 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
24 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
25 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
26 | (24) Beginning on August 2, 2001 (the effective date of |
| |||||||
| |||||||
1 | Public Act 92-227), computers and communications equipment
| ||||||
2 | utilized for any hospital purpose and equipment used in the | ||||||
3 | diagnosis,
analysis, or treatment of hospital patients | ||||||
4 | purchased by a lessor who leases
the equipment, under a lease | ||||||
5 | of one year or longer executed or in effect at the
time the | ||||||
6 | lessor would otherwise be subject to the tax imposed by this | ||||||
7 | Act, to a
hospital that has been issued an active tax exemption | ||||||
8 | identification number by
the Department under Section 1g of | ||||||
9 | the Retailers' Occupation Tax Act. If the
equipment is leased | ||||||
10 | in a manner that does not qualify for this exemption or is
used | ||||||
11 | in any other nonexempt manner, the lessor shall be liable for | ||||||
12 | the
tax imposed under this Act or the Use Tax Act, as the case | ||||||
13 | may be, based on the
fair market value of the property at the | ||||||
14 | time the nonqualifying use occurs.
No lessor shall collect or | ||||||
15 | attempt to collect an amount (however
designated) that | ||||||
16 | purports to reimburse that lessor for the tax imposed by this
| ||||||
17 | Act or the Use Tax Act, as the case may be, if the tax has not | ||||||
18 | been
paid by the lessor. If a lessor improperly collects any | ||||||
19 | such amount from the
lessee, the lessee shall have a legal | ||||||
20 | right to claim a refund of that amount
from the lessor. If, | ||||||
21 | however, that amount is not refunded to the lessee for
any | ||||||
22 | reason, the lessor is liable to pay that amount to the | ||||||
23 | Department.
This paragraph is exempt from the provisions of | ||||||
24 | Section 3-75.
| ||||||
25 | (25) Beginning
on August 2, 2001 (the effective date of | ||||||
26 | Public Act 92-227),
personal property purchased by a lessor
|
| |||||||
| |||||||
1 | who leases the property, under a lease of one year or longer | ||||||
2 | executed or in
effect at the time the lessor would otherwise be | ||||||
3 | subject to the tax imposed by
this Act, to a governmental body | ||||||
4 | that has been issued an active tax exemption
identification | ||||||
5 | number by the Department under Section 1g of the Retailers'
| ||||||
6 | Occupation Tax Act. If the property is leased in a manner that | ||||||
7 | does not
qualify for this exemption or is used in any other | ||||||
8 | nonexempt manner, the
lessor shall be liable for the tax | ||||||
9 | imposed under this Act or the Use Tax Act,
as the case may be, | ||||||
10 | based on the fair market value of the property at the time
the | ||||||
11 | nonqualifying use occurs. No lessor shall collect or attempt | ||||||
12 | to collect
an amount (however designated) that purports to | ||||||
13 | reimburse that lessor for the
tax imposed by this Act or the | ||||||
14 | Use Tax Act, as the case may be, if the tax has
not been paid | ||||||
15 | by the lessor. If a lessor improperly collects any such amount
| ||||||
16 | from the lessee, the lessee shall have a legal right to claim a | ||||||
17 | refund of that
amount from the lessor. If, however, that | ||||||
18 | amount is not refunded to the lessee
for any reason, the lessor | ||||||
19 | is liable to pay that amount to the Department.
This paragraph | ||||||
20 | is exempt from the provisions of Section 3-75.
| ||||||
21 | (26) Beginning January 1, 2008, tangible personal property | ||||||
22 | used in the construction or maintenance of a community water | ||||||
23 | supply, as defined under Section 3.145 of the Environmental | ||||||
24 | Protection Act, that is operated by a not-for-profit | ||||||
25 | corporation that holds a valid water supply permit issued | ||||||
26 | under Title IV of the Environmental Protection Act. This |
| |||||||
| |||||||
1 | paragraph is exempt from the provisions of Section 3-75.
| ||||||
2 | (27) Beginning January 1, 2010 and continuing through | ||||||
3 | December 31, 2029 December 31, 2024 , materials, parts, | ||||||
4 | equipment, components, and furnishings incorporated into or | ||||||
5 | upon an aircraft as part of the modification, refurbishment, | ||||||
6 | completion, replacement, repair, or maintenance of the | ||||||
7 | aircraft. This exemption includes consumable supplies used in | ||||||
8 | the modification, refurbishment, completion, replacement, | ||||||
9 | repair, and maintenance of aircraft . However, until January 1, | ||||||
10 | 2024, this exemption , but excludes any materials, parts, | ||||||
11 | equipment, components, and consumable supplies used in the | ||||||
12 | modification, replacement, repair, and maintenance of aircraft | ||||||
13 | engines or power plants, whether such engines or power plants | ||||||
14 | are installed or uninstalled upon any such aircraft. | ||||||
15 | "Consumable supplies" include, but are not limited to, | ||||||
16 | adhesive, tape, sandpaper, general purpose lubricants, | ||||||
17 | cleaning solution, latex gloves, and protective films. | ||||||
18 | Beginning January 1, 2010 and continuing through December | ||||||
19 | 31, 2023, this This exemption applies only to the use of | ||||||
20 | qualifying tangible personal property transferred incident to | ||||||
21 | the modification, refurbishment, completion, replacement, | ||||||
22 | repair, or maintenance of aircraft by persons who (i) hold an | ||||||
23 | Air Agency Certificate and are empowered to operate an | ||||||
24 | approved repair station by the Federal Aviation | ||||||
25 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
26 | operations in accordance with Part 145 of the Federal Aviation |
| |||||||
| |||||||
1 | Regulations. From January 1, 2024 through December 31, 2029, | ||||||
2 | this exemption applies only to the use of qualifying tangible | ||||||
3 | personal property by: (A) persons who modify, refurbish, | ||||||
4 | complete, repair, replace, or maintain aircraft and who (i) | ||||||
5 | hold an Air Agency Certificate and are empowered to operate an | ||||||
6 | approved repair station by the Federal Aviation | ||||||
7 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
8 | operations in accordance with Part 145 of the Federal Aviation | ||||||
9 | Regulations; and (B) persons who engage in the modification, | ||||||
10 | replacement, repair, and maintenance of aircraft engines or | ||||||
11 | power plants without regard to whether or not those persons | ||||||
12 | meet the qualifications of item (A). | ||||||
13 | The exemption does not include aircraft operated by a | ||||||
14 | commercial air carrier providing scheduled passenger air | ||||||
15 | service pursuant to authority issued under Part 121 or Part | ||||||
16 | 129 of the Federal Aviation Regulations. The changes made to | ||||||
17 | this paragraph (27) by Public Act 98-534 are declarative of | ||||||
18 | existing law. It is the intent of the General Assembly that the | ||||||
19 | exemption under this paragraph (27) applies continuously from | ||||||
20 | January 1, 2010 through December 31, 2024; however, no claim | ||||||
21 | for credit or refund is allowed for taxes paid as a result of | ||||||
22 | the disallowance of this exemption on or after January 1, 2015 | ||||||
23 | and prior to February 5, 2020 ( the effective date of Public Act | ||||||
24 | 101-629) this amendatory Act of the 101st General Assembly . | ||||||
25 | (28) Tangible personal property purchased by a | ||||||
26 | public-facilities corporation, as described in Section |
| |||||||
| |||||||
1 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
2 | constructing or furnishing a municipal convention hall, but | ||||||
3 | only if the legal title to the municipal convention hall is | ||||||
4 | transferred to the municipality without any further | ||||||
5 | consideration by or on behalf of the municipality at the time | ||||||
6 | of the completion of the municipal convention hall or upon the | ||||||
7 | retirement or redemption of any bonds or other debt | ||||||
8 | instruments issued by the public-facilities corporation in | ||||||
9 | connection with the development of the municipal convention | ||||||
10 | hall. This exemption includes existing public-facilities | ||||||
11 | corporations as provided in Section 11-65-25 of the Illinois | ||||||
12 | Municipal Code. This paragraph is exempt from the provisions | ||||||
13 | of Section 3-75. | ||||||
14 | (29) Beginning January 1, 2017 and through December 31, | ||||||
15 | 2026, menstrual pads, tampons, and menstrual cups. | ||||||
16 | (30) Tangible personal property transferred to a purchaser | ||||||
17 | who is exempt from the tax imposed by this Act by operation of | ||||||
18 | federal law. This paragraph is exempt from the provisions of | ||||||
19 | Section 3-75. | ||||||
20 | (31) Qualified tangible personal property used in the | ||||||
21 | construction or operation of a data center that has been | ||||||
22 | granted a certificate of exemption by the Department of | ||||||
23 | Commerce and Economic Opportunity, whether that tangible | ||||||
24 | personal property is purchased by the owner, operator, or | ||||||
25 | tenant of the data center or by a contractor or subcontractor | ||||||
26 | of the owner, operator, or tenant. Data centers that would |
| |||||||
| |||||||
1 | have qualified for a certificate of exemption prior to January | ||||||
2 | 1, 2020 had Public Act 101-31 this amendatory Act of the 101st | ||||||
3 | General Assembly been in effect, may apply for and obtain an | ||||||
4 | exemption for subsequent purchases of computer equipment or | ||||||
5 | enabling software purchased or leased to upgrade, supplement, | ||||||
6 | or replace computer equipment or enabling software purchased | ||||||
7 | or leased in the original investment that would have | ||||||
8 | qualified. | ||||||
9 | The Department of Commerce and Economic Opportunity shall | ||||||
10 | grant a certificate of exemption under this item (31) to | ||||||
11 | qualified data centers as defined by Section 605-1025 of the | ||||||
12 | Department of Commerce and Economic Opportunity Law of the
| ||||||
13 | Civil Administrative Code of Illinois. | ||||||
14 | For the purposes of this item (31): | ||||||
15 | "Data center" means a building or a series of | ||||||
16 | buildings rehabilitated or constructed to house working | ||||||
17 | servers in one physical location or multiple sites within | ||||||
18 | the State of Illinois. | ||||||
19 | "Qualified tangible personal property" means: | ||||||
20 | electrical systems and equipment; climate control and | ||||||
21 | chilling equipment and systems; mechanical systems and | ||||||
22 | equipment; monitoring and secure systems; emergency | ||||||
23 | generators; hardware; computers; servers; data storage | ||||||
24 | devices; network connectivity equipment; racks; cabinets; | ||||||
25 | telecommunications cabling infrastructure; raised floor | ||||||
26 | systems; peripheral components or systems; software; |
| |||||||
| |||||||
1 | mechanical, electrical, or plumbing systems; battery | ||||||
2 | systems; cooling systems and towers; temperature control | ||||||
3 | systems; other cabling; and other data center | ||||||
4 | infrastructure equipment and systems necessary to operate | ||||||
5 | qualified tangible personal property, including fixtures; | ||||||
6 | and component parts of any of the foregoing, including | ||||||
7 | installation, maintenance, repair, refurbishment, and | ||||||
8 | replacement of qualified tangible personal property to | ||||||
9 | generate, transform, transmit, distribute, or manage | ||||||
10 | electricity necessary to operate qualified tangible | ||||||
11 | personal property; and all other tangible personal | ||||||
12 | property that is essential to the operations of a computer | ||||||
13 | data center. The term "qualified tangible personal | ||||||
14 | property" also includes building materials physically | ||||||
15 | incorporated in to the qualifying data center. To document | ||||||
16 | the exemption allowed under this Section, the retailer | ||||||
17 | must obtain from the purchaser a copy of the certificate | ||||||
18 | of eligibility issued by the Department of Commerce and | ||||||
19 | Economic Opportunity. | ||||||
20 | This item (31) is exempt from the provisions of Section | ||||||
21 | 3-75. | ||||||
22 | (32) Beginning July 1, 2022, breast pumps, breast pump | ||||||
23 | collection and storage supplies, and breast pump kits. This | ||||||
24 | item (32) is exempt from the provisions of Section 3-75. As | ||||||
25 | used in this item (32): | ||||||
26 | "Breast pump" means an electrically controlled or |
| |||||||
| |||||||
1 | manually controlled pump device designed or marketed to be | ||||||
2 | used to express milk from a human breast during lactation, | ||||||
3 | including the pump device and any battery, AC adapter, or | ||||||
4 | other power supply unit that is used to power the pump | ||||||
5 | device and is packaged and sold with the pump device at the | ||||||
6 | time of sale. | ||||||
7 | "Breast pump collection and storage supplies" means | ||||||
8 | items of tangible personal property designed or marketed | ||||||
9 | to be used in conjunction with a breast pump to collect | ||||||
10 | milk expressed from a human breast and to store collected | ||||||
11 | milk until it is ready for consumption. | ||||||
12 | "Breast pump collection and storage supplies" | ||||||
13 | includes, but is not limited to: breast shields and breast | ||||||
14 | shield connectors; breast pump tubes and tubing adapters; | ||||||
15 | breast pump valves and membranes; backflow protectors and | ||||||
16 | backflow protector adaptors; bottles and bottle caps | ||||||
17 | specific to the operation of the breast pump; and breast | ||||||
18 | milk storage bags. | ||||||
19 | "Breast pump collection and storage supplies" does not | ||||||
20 | include: (1) bottles and bottle caps not specific to the | ||||||
21 | operation of the breast pump; (2) breast pump travel bags | ||||||
22 | and other similar carrying accessories, including ice | ||||||
23 | packs, labels, and other similar products; (3) breast pump | ||||||
24 | cleaning supplies; (4) nursing bras, bra pads, breast | ||||||
25 | shells, and other similar products; and (5) creams, | ||||||
26 | ointments, and other similar products that relieve |
| |||||||
| |||||||
1 | breastfeeding-related symptoms or conditions of the | ||||||
2 | breasts or nipples, unless sold as part of a breast pump | ||||||
3 | kit that is pre-packaged by the breast pump manufacturer | ||||||
4 | or distributor. | ||||||
5 | "Breast pump kit" means a kit that: (1) contains no | ||||||
6 | more than a breast pump, breast pump collection and | ||||||
7 | storage supplies, a rechargeable battery for operating the | ||||||
8 | breast pump, a breastmilk cooler, bottle stands, ice | ||||||
9 | packs, and a breast pump carrying case; and (2) is | ||||||
10 | pre-packaged as a breast pump kit by the breast pump | ||||||
11 | manufacturer or distributor. | ||||||
12 | (33) (32) Tangible personal property sold by or on behalf | ||||||
13 | of the State Treasurer pursuant to the Revised Uniform | ||||||
14 | Unclaimed Property Act. This item (33) (32) is exempt from the | ||||||
15 | provisions of Section 3-75. | ||||||
16 | (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; | ||||||
17 | 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article | ||||||
18 | 70, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section | ||||||
19 | 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
| ||||||
20 | Section 5-15. The Service Occupation Tax Act is amended by | ||||||
21 | changing Section 3-5 as follows:
| ||||||
22 | (35 ILCS 115/3-5)
| ||||||
23 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
24 | property is
exempt from the tax imposed by this Act:
|
| |||||||
| |||||||
1 | (1) Personal property sold by a corporation, society, | ||||||
2 | association,
foundation, institution, or organization, other | ||||||
3 | than a limited liability
company, that is organized and | ||||||
4 | operated as a not-for-profit service enterprise
for the | ||||||
5 | benefit of persons 65 years of age or older if the personal | ||||||
6 | property
was not purchased by the enterprise for the purpose | ||||||
7 | of resale by the
enterprise.
| ||||||
8 | (2) Personal property purchased by a not-for-profit | ||||||
9 | Illinois county fair
association for use in conducting, | ||||||
10 | operating, or promoting the county fair.
| ||||||
11 | (3) Personal property purchased by any not-for-profit
arts | ||||||
12 | or cultural organization that establishes, by proof required | ||||||
13 | by the
Department by
rule, that it has received an exemption | ||||||
14 | under Section 501(c)(3) of the
Internal Revenue Code and that | ||||||
15 | is organized and operated primarily for the
presentation
or | ||||||
16 | support of arts or cultural programming, activities, or | ||||||
17 | services. These
organizations include, but are not limited to, | ||||||
18 | music and dramatic arts
organizations such as symphony | ||||||
19 | orchestras and theatrical groups, arts and
cultural service | ||||||
20 | organizations, local arts councils, visual arts organizations,
| ||||||
21 | and media arts organizations.
On and after July 1, 2001 (the | ||||||
22 | effective date of Public Act 92-35), however, an entity | ||||||
23 | otherwise eligible for this exemption shall not
make tax-free | ||||||
24 | purchases unless it has an active identification number issued | ||||||
25 | by
the Department.
| ||||||
26 | (4) Legal tender, currency, medallions, or gold or silver |
| |||||||
| |||||||
1 | coinage
issued by the State of Illinois, the government of the | ||||||
2 | United States of
America, or the government of any foreign | ||||||
3 | country, and bullion.
| ||||||
4 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
5 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
6 | equipment, including
repair and
replacement parts, both new | ||||||
7 | and used, and including that manufactured on
special order or | ||||||
8 | purchased for lease, certified by the purchaser to be used
| ||||||
9 | primarily for graphic arts production.
Equipment includes | ||||||
10 | chemicals or chemicals acting as catalysts but only if
the
| ||||||
11 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
12 | immediate change
upon a graphic arts product. Beginning on | ||||||
13 | July 1, 2017, graphic arts machinery and equipment is included | ||||||
14 | in the manufacturing and assembling machinery and equipment | ||||||
15 | exemption under Section 2 of this Act.
| ||||||
16 | (6) Personal property sold by a teacher-sponsored student | ||||||
17 | organization
affiliated with an elementary or secondary school | ||||||
18 | located in Illinois.
| ||||||
19 | (7) Farm machinery and equipment, both new and used, | ||||||
20 | including that
manufactured on special order, certified by the | ||||||
21 | purchaser to be used
primarily for production agriculture or | ||||||
22 | State or federal agricultural
programs, including individual | ||||||
23 | replacement parts for the machinery and
equipment, including | ||||||
24 | machinery and equipment purchased for lease,
and including | ||||||
25 | implements of husbandry defined in Section 1-130 of
the | ||||||
26 | Illinois Vehicle Code, farm machinery and agricultural |
| |||||||
| |||||||
1 | chemical and
fertilizer spreaders, and nurse wagons required | ||||||
2 | to be registered
under Section 3-809 of the Illinois Vehicle | ||||||
3 | Code,
but
excluding other motor vehicles required to be | ||||||
4 | registered under the Illinois
Vehicle
Code.
Horticultural | ||||||
5 | polyhouses or hoop houses used for propagating, growing, or
| ||||||
6 | overwintering plants shall be considered farm machinery and | ||||||
7 | equipment under
this item (7).
Agricultural chemical tender | ||||||
8 | tanks and dry boxes shall include units sold
separately from a | ||||||
9 | motor vehicle required to be licensed and units sold mounted
| ||||||
10 | on a motor vehicle required to be licensed if the selling price | ||||||
11 | of the tender
is separately stated.
| ||||||
12 | Farm machinery and equipment shall include precision | ||||||
13 | farming equipment
that is
installed or purchased to be | ||||||
14 | installed on farm machinery and equipment
including, but not | ||||||
15 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
16 | or spreaders.
Precision farming equipment includes, but is not | ||||||
17 | limited to,
soil testing sensors, computers, monitors, | ||||||
18 | software, global positioning
and mapping systems, and other | ||||||
19 | such equipment.
| ||||||
20 | Farm machinery and equipment also includes computers, | ||||||
21 | sensors, software, and
related equipment used primarily in the
| ||||||
22 | computer-assisted operation of production agriculture | ||||||
23 | facilities, equipment,
and activities such as, but
not limited | ||||||
24 | to,
the collection, monitoring, and correlation of
animal and | ||||||
25 | crop data for the purpose of
formulating animal diets and | ||||||
26 | agricultural chemicals. This item (7) is exempt
from the |
| |||||||
| |||||||
1 | provisions of
Section 3-55.
| ||||||
2 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
3 | to or used by an air common
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 flight | ||||||
6 | destined for or returning from a location or locations
outside | ||||||
7 | the United States without regard to previous or subsequent | ||||||
8 | domestic
stopovers.
| ||||||
9 | Beginning July 1, 2013, fuel and petroleum products sold | ||||||
10 | to or used by an air carrier, certified by the carrier to be | ||||||
11 | used for consumption, shipment, or storage in the conduct of | ||||||
12 | its business as an air common carrier, for a flight that (i) is | ||||||
13 | engaged in foreign trade or is engaged in trade between the | ||||||
14 | United States and any of its possessions and (ii) transports | ||||||
15 | at least one individual or package for hire from the city of | ||||||
16 | origination to the city of final destination on the same | ||||||
17 | aircraft, without regard to a change in the flight number of | ||||||
18 | that aircraft. | ||||||
19 | (9) Proceeds of mandatory service charges separately
| ||||||
20 | stated on customers' bills for the purchase and consumption of | ||||||
21 | food and
beverages, to the extent that the proceeds of the | ||||||
22 | service charge are in fact
turned over as tips or as a | ||||||
23 | substitute for tips to the employees who
participate directly | ||||||
24 | in preparing, serving, hosting or cleaning up the
food or | ||||||
25 | beverage function with respect to which the service charge is | ||||||
26 | imposed.
|
| |||||||
| |||||||
1 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
2 | and production
equipment,
including (i) rigs and parts of | ||||||
3 | rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) | ||||||
4 | pipe and tubular goods, including casing and
drill strings, | ||||||
5 | (iii) pumps and pump-jack units, (iv) storage tanks and flow
| ||||||
6 | lines, (v) any individual replacement part for oil field | ||||||
7 | exploration,
drilling, and production equipment, and (vi) | ||||||
8 | machinery and equipment purchased
for lease; but
excluding | ||||||
9 | motor vehicles required to be registered under the Illinois
| ||||||
10 | Vehicle Code.
| ||||||
11 | (11) Photoprocessing machinery and equipment, including | ||||||
12 | repair and
replacement parts, both new and used, including | ||||||
13 | that manufactured on
special order, certified by the purchaser | ||||||
14 | to be used primarily for
photoprocessing, and including | ||||||
15 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
16 | (12) Until July 1, 2028, coal and aggregate exploration, | ||||||
17 | mining, off-highway hauling,
processing,
maintenance, and | ||||||
18 | reclamation equipment, including
replacement parts and | ||||||
19 | equipment, and including
equipment
purchased for lease, but | ||||||
20 | excluding motor vehicles required to be registered
under the | ||||||
21 | Illinois Vehicle Code. The changes made to this Section by | ||||||
22 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
23 | for credit or refund is allowed on or after August 16, 2013 | ||||||
24 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
25 | during the period beginning July 1, 2003 and ending on August | ||||||
26 | 16, 2013 (the effective date of Public Act 98-456).
|
| |||||||
| |||||||
1 | (13) Beginning January 1, 1992 and through June 30, 2016, | ||||||
2 | food for human consumption that is to be consumed off the | ||||||
3 | premises
where it is sold (other than alcoholic beverages, | ||||||
4 | soft drinks and food that
has been prepared for immediate | ||||||
5 | consumption) and prescription and
non-prescription medicines, | ||||||
6 | drugs, medical appliances, and insulin, urine
testing | ||||||
7 | materials, syringes, and needles used by diabetics, for human | ||||||
8 | use,
when purchased for use by a person receiving medical | ||||||
9 | assistance under
Article V of the Illinois Public Aid Code who | ||||||
10 | resides in a licensed
long-term care facility, as defined in | ||||||
11 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
12 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
13 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
14 | (14) Semen used for artificial insemination of livestock | ||||||
15 | for direct
agricultural production.
| ||||||
16 | (15) Horses, or interests in horses, registered with and | ||||||
17 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
18 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
19 | Horse Association, United States
Trotting Association, or | ||||||
20 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
21 | racing for prizes. This item (15) is exempt from the | ||||||
22 | provisions of Section 3-55, and the exemption provided for | ||||||
23 | under this item (15) applies for all periods beginning May 30, | ||||||
24 | 1995, but no claim for credit or refund is allowed on or after | ||||||
25 | January 1, 2008 (the effective date of Public Act 95-88)
for | ||||||
26 | such taxes paid during the period beginning May 30, 2000 and |
| |||||||
| |||||||
1 | ending on January 1, 2008 (the effective date of Public Act | ||||||
2 | 95-88).
| ||||||
3 | (16) Computers and communications equipment utilized for | ||||||
4 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
5 | analysis, or treatment of hospital patients sold to a lessor | ||||||
6 | who leases the
equipment, under a lease of one year or longer | ||||||
7 | executed or in effect at the
time of the purchase, to a
| ||||||
8 | hospital
that has been issued an active tax exemption | ||||||
9 | identification number by the
Department under Section 1g of | ||||||
10 | the Retailers' Occupation Tax Act.
| ||||||
11 | (17) Personal property sold to a lessor who leases the
| ||||||
12 | property, under a
lease of one year or longer executed or in | ||||||
13 | effect at the time of the purchase,
to a governmental body
that | ||||||
14 | has been issued an active tax exemption identification number | ||||||
15 | by the
Department under Section 1g of the Retailers' | ||||||
16 | Occupation Tax Act.
| ||||||
17 | (18) Beginning with taxable years ending on or after | ||||||
18 | December
31, 1995
and
ending with taxable years ending on or | ||||||
19 | before December 31, 2004,
personal property that is
donated | ||||||
20 | for disaster relief to be used in a State or federally declared
| ||||||
21 | disaster area in Illinois or bordering Illinois by a | ||||||
22 | manufacturer or retailer
that is registered in this State to a | ||||||
23 | corporation, society, association,
foundation, or institution | ||||||
24 | that has been issued a sales tax exemption
identification | ||||||
25 | number by the Department that assists victims of the disaster
| ||||||
26 | who reside within the declared disaster area.
|
| |||||||
| |||||||
1 | (19) Beginning with taxable years ending on or after | ||||||
2 | December
31, 1995 and
ending with taxable years ending on or | ||||||
3 | before December 31, 2004, personal
property that is used in | ||||||
4 | the performance of infrastructure repairs in this
State, | ||||||
5 | including but not limited to municipal roads and streets, | ||||||
6 | access roads,
bridges, sidewalks, waste disposal systems, | ||||||
7 | water and sewer line extensions,
water distribution and | ||||||
8 | purification facilities, storm water drainage and
retention | ||||||
9 | facilities, and sewage treatment facilities, resulting from a | ||||||
10 | State
or federally declared disaster in Illinois or bordering | ||||||
11 | Illinois when such
repairs are initiated on facilities located | ||||||
12 | in the declared disaster area
within 6 months after the | ||||||
13 | disaster.
| ||||||
14 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
15 | "game breeding
and
hunting preserve area" as that term is used
| ||||||
16 | in the
Wildlife Code. This paragraph is exempt from the | ||||||
17 | provisions
of
Section 3-55.
| ||||||
18 | (21) A motor vehicle, as that term is defined in Section | ||||||
19 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
20 | corporation, limited liability
company, society, association, | ||||||
21 | foundation, or institution that is determined by
the | ||||||
22 | Department to be organized and operated exclusively for | ||||||
23 | educational
purposes. For purposes of this exemption, "a | ||||||
24 | corporation, limited liability
company, society, association, | ||||||
25 | foundation, or institution organized and
operated
exclusively | ||||||
26 | for educational purposes" means all tax-supported public |
| |||||||
| |||||||
1 | schools,
private schools that offer systematic instruction in | ||||||
2 | useful branches of
learning by methods common to public | ||||||
3 | schools and that compare favorably in
their scope and | ||||||
4 | intensity with the course of study presented in tax-supported
| ||||||
5 | schools, and vocational or technical schools or institutes | ||||||
6 | organized and
operated exclusively to provide a course of | ||||||
7 | study of not less than 6 weeks
duration and designed to prepare | ||||||
8 | individuals to follow a trade or to pursue a
manual, | ||||||
9 | technical, mechanical, industrial, business, or commercial
| ||||||
10 | occupation.
| ||||||
11 | (22) Beginning January 1, 2000, personal property, | ||||||
12 | including
food,
purchased through fundraising
events for the | ||||||
13 | benefit of
a public or private elementary or
secondary school, | ||||||
14 | a group of those schools, or one or more school
districts if | ||||||
15 | the events are
sponsored by an entity recognized by the school | ||||||
16 | district that consists
primarily of volunteers and includes
| ||||||
17 | parents and teachers of the school children. This paragraph | ||||||
18 | does not apply
to fundraising
events (i) for the benefit of | ||||||
19 | private home instruction or (ii)
for which the fundraising | ||||||
20 | entity purchases the personal property sold at
the events from | ||||||
21 | another individual or entity that sold the property for the
| ||||||
22 | purpose of resale by the fundraising entity and that
profits | ||||||
23 | from the sale to the
fundraising entity. This paragraph is | ||||||
24 | exempt
from the provisions
of Section 3-55.
| ||||||
25 | (23) Beginning January 1, 2000
and through December 31, | ||||||
26 | 2001, new or used automatic vending
machines that prepare and |
| |||||||
| |||||||
1 | serve hot food and beverages, including coffee, soup,
and
| ||||||
2 | other items, and replacement parts for these machines.
| ||||||
3 | Beginning January 1,
2002 and through June 30, 2003, machines | ||||||
4 | and parts for
machines used in commercial, coin-operated | ||||||
5 | amusement
and vending business if a use or occupation tax is | ||||||
6 | paid on the gross receipts
derived from
the use of the | ||||||
7 | commercial, coin-operated amusement and vending machines.
This | ||||||
8 | paragraph is exempt from the provisions of Section 3-55.
| ||||||
9 | (24) Beginning
on August 2, 2001 (the effective date of | ||||||
10 | Public Act 92-227),
computers and communications equipment
| ||||||
11 | utilized for any hospital purpose and equipment used in the | ||||||
12 | diagnosis,
analysis, or treatment of hospital patients sold to | ||||||
13 | a lessor who leases the
equipment, under a lease of one year or | ||||||
14 | longer executed or in effect at the
time of the purchase, to a | ||||||
15 | hospital that has been issued an active tax
exemption | ||||||
16 | identification number by the Department under Section 1g of | ||||||
17 | the
Retailers' Occupation Tax Act. This paragraph is exempt | ||||||
18 | from the provisions of
Section 3-55.
| ||||||
19 | (25) Beginning
on August 2, 2001 (the effective date of | ||||||
20 | Public Act 92-227),
personal property sold to a lessor who
| ||||||
21 | leases the property, under a lease of one year or longer | ||||||
22 | executed or in effect
at the time of the purchase, to a | ||||||
23 | governmental body that has been issued an
active tax exemption | ||||||
24 | identification number by the Department under Section 1g
of | ||||||
25 | the Retailers' Occupation Tax Act. This paragraph is exempt | ||||||
26 | from the
provisions of Section 3-55.
|
| |||||||
| |||||||
1 | (26) Beginning on January 1, 2002 and through June 30, | ||||||
2 | 2016, tangible personal property
purchased
from an Illinois | ||||||
3 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
4 | activities in Illinois who will, upon receipt of the property | ||||||
5 | in Illinois,
temporarily store the property in Illinois (i) | ||||||
6 | for the purpose of subsequently
transporting it outside this | ||||||
7 | State for use or consumption thereafter solely
outside this | ||||||
8 | State or (ii) for the purpose of being processed, fabricated, | ||||||
9 | or
manufactured into, attached to, or incorporated into other | ||||||
10 | tangible personal
property to be transported outside this | ||||||
11 | State and thereafter used or consumed
solely outside this | ||||||
12 | State. The Director of Revenue shall, pursuant to rules
| ||||||
13 | adopted in accordance with the Illinois Administrative | ||||||
14 | Procedure Act, issue a
permit to any taxpayer in good standing | ||||||
15 | with the Department who is eligible for
the exemption under | ||||||
16 | this paragraph (26). The permit issued under
this paragraph | ||||||
17 | (26) shall authorize the holder, to the extent and
in the | ||||||
18 | manner specified in the rules adopted under this Act, to | ||||||
19 | purchase
tangible personal property from a retailer exempt | ||||||
20 | from the taxes imposed by
this Act. Taxpayers shall maintain | ||||||
21 | all necessary books and records to
substantiate the use and | ||||||
22 | consumption of all such tangible personal property
outside of | ||||||
23 | the State of Illinois.
| ||||||
24 | (27) Beginning January 1, 2008, tangible personal property | ||||||
25 | used in the construction or maintenance of a community water | ||||||
26 | supply, as defined under Section 3.145 of the Environmental |
| |||||||
| |||||||
1 | Protection Act, that is operated by a not-for-profit | ||||||
2 | corporation that holds a valid water supply permit issued | ||||||
3 | under Title IV of the Environmental Protection Act. This | ||||||
4 | paragraph is exempt from the provisions of Section 3-55.
| ||||||
5 | (28) Tangible personal property sold to a | ||||||
6 | public-facilities corporation, as described in Section | ||||||
7 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
8 | constructing or furnishing a municipal convention hall, but | ||||||
9 | only if the legal title to the municipal convention hall is | ||||||
10 | transferred to the municipality without any further | ||||||
11 | consideration by or on behalf of the municipality at the time | ||||||
12 | of the completion of the municipal convention hall or upon the | ||||||
13 | retirement or redemption of any bonds or other debt | ||||||
14 | instruments issued by the public-facilities corporation in | ||||||
15 | connection with the development of the municipal convention | ||||||
16 | hall. This exemption includes existing public-facilities | ||||||
17 | corporations as provided in Section 11-65-25 of the Illinois | ||||||
18 | Municipal Code. This paragraph is exempt from the provisions | ||||||
19 | of Section 3-55. | ||||||
20 | (29) Beginning January 1, 2010 and continuing through | ||||||
21 | December 31, 2029 December 31, 2024 , materials, parts, | ||||||
22 | equipment, components, and furnishings incorporated into or | ||||||
23 | upon an aircraft as part of the modification, refurbishment, | ||||||
24 | completion, replacement, repair, or maintenance of the | ||||||
25 | aircraft. This exemption includes consumable supplies used in | ||||||
26 | the modification, refurbishment, completion, replacement, |
| |||||||
| |||||||
1 | repair, and maintenance of aircraft . However, until January 1, | ||||||
2 | 2024, this exemption , but excludes any materials, parts, | ||||||
3 | equipment, components, and consumable supplies used in the | ||||||
4 | modification, replacement, repair, and maintenance of aircraft | ||||||
5 | engines or power plants, whether such engines or power plants | ||||||
6 | are installed or uninstalled upon any such aircraft. | ||||||
7 | "Consumable supplies" include, but are not limited to, | ||||||
8 | adhesive, tape, sandpaper, general purpose lubricants, | ||||||
9 | cleaning solution, latex gloves, and protective films. | ||||||
10 | Beginning January 1, 2010 and continuing through December | ||||||
11 | 31, 2023, this This exemption applies only to the transfer of | ||||||
12 | qualifying tangible personal property incident to the | ||||||
13 | modification, refurbishment, completion, replacement, repair, | ||||||
14 | or maintenance of an aircraft by persons who (i) hold an Air | ||||||
15 | Agency Certificate and are empowered to operate an approved | ||||||
16 | repair station by the Federal Aviation Administration, (ii) | ||||||
17 | have a Class IV Rating, and (iii) conduct operations in | ||||||
18 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
19 | The exemption does not include aircraft operated by a | ||||||
20 | commercial air carrier providing scheduled passenger air | ||||||
21 | service pursuant to authority issued under Part 121 or Part | ||||||
22 | 129 of the Federal Aviation Regulations. From January 1, 2024 | ||||||
23 | through December 31, 2029, this exemption applies only to the | ||||||
24 | use of qualifying tangible personal property by: (A) persons | ||||||
25 | who modify, refurbish, complete, repair, replace, or maintain | ||||||
26 | aircraft and who (i) hold an Air Agency Certificate and are |
| |||||||
| |||||||
1 | empowered to operate an approved repair station by the Federal | ||||||
2 | Aviation Administration, (ii) have a Class IV Rating, and | ||||||
3 | (iii) conduct operations in accordance with Part 145 of the | ||||||
4 | Federal Aviation Regulations; and (B) persons who engage in | ||||||
5 | the modification, replacement, repair, and maintenance of | ||||||
6 | aircraft engines or power plants without regard to whether or | ||||||
7 | not those persons meet the qualifications of item (A). | ||||||
8 | The changes made to this paragraph (29) by Public Act | ||||||
9 | 98-534 are declarative of existing law. It is the intent of the | ||||||
10 | General Assembly that the exemption under this paragraph (29) | ||||||
11 | applies continuously from January 1, 2010 through December 31, | ||||||
12 | 2024; however, no claim for credit or refund is allowed for | ||||||
13 | taxes paid as a result of the disallowance of this exemption on | ||||||
14 | or after January 1, 2015 and prior to February 5, 2020 ( the | ||||||
15 | effective date of Public Act 101-629) this amendatory Act of | ||||||
16 | the 101st General Assembly . | ||||||
17 | (30) Beginning January 1, 2017 and through December 31, | ||||||
18 | 2026, menstrual pads, tampons, and menstrual cups. | ||||||
19 | (31) Tangible personal property transferred to a purchaser | ||||||
20 | who is exempt from tax by operation of federal law. This | ||||||
21 | paragraph is exempt from the provisions of Section 3-55. | ||||||
22 | (32) Qualified tangible personal property used in the | ||||||
23 | construction or operation of a data center that has been | ||||||
24 | granted a certificate of exemption by the Department of | ||||||
25 | Commerce and Economic Opportunity, whether that tangible | ||||||
26 | personal property is purchased by the owner, operator, or |
| |||||||
| |||||||
1 | tenant of the data center or by a contractor or subcontractor | ||||||
2 | of the owner, operator, or tenant. Data centers that would | ||||||
3 | have qualified for a certificate of exemption prior to January | ||||||
4 | 1, 2020 had Public Act 101-31 this amendatory Act of the 101st | ||||||
5 | General Assembly been in effect, may apply for and obtain an | ||||||
6 | exemption for subsequent purchases of computer equipment or | ||||||
7 | enabling software purchased or leased to upgrade, supplement, | ||||||
8 | or replace computer equipment or enabling software purchased | ||||||
9 | or leased in the original investment that would have | ||||||
10 | qualified. | ||||||
11 | The Department of Commerce and Economic Opportunity shall | ||||||
12 | grant a certificate of exemption under this item (32) to | ||||||
13 | qualified data centers as defined by Section 605-1025 of the | ||||||
14 | Department of Commerce and Economic Opportunity Law of the
| ||||||
15 | Civil Administrative Code of Illinois. | ||||||
16 | For the purposes of this item (32): | ||||||
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; |
| |||||||
| |||||||
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 (32) is exempt from the provisions of Section | ||||||
23 | 3-55. | ||||||
24 | (33) Beginning July 1, 2022, breast pumps, breast pump | ||||||
25 | collection and storage supplies, and breast pump kits. This | ||||||
26 | item (33) is exempt from the provisions of Section 3-55. As |
| |||||||
| |||||||
1 | used in this item (33): | ||||||
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 |
| |||||||
| |||||||
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 | (34) (33) Tangible personal property sold by or on behalf | ||||||
15 | of the State Treasurer pursuant to the Revised Uniform | ||||||
16 | Unclaimed Property Act. This item (34) (33) is exempt from the | ||||||
17 | provisions of Section 3-55. | ||||||
18 | (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; | ||||||
19 | 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article | ||||||
20 | 70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section | ||||||
21 | 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
| ||||||
22 | Section 5-20. The Retailers' Occupation Tax Act is amended | ||||||
23 | by changing Section 2-5 as follows:
| ||||||
24 | (35 ILCS 120/2-5)
|
| |||||||
| |||||||
1 | Sec. 2-5. Exemptions. Gross receipts from proceeds from | ||||||
2 | the sale of
the following tangible personal property are | ||||||
3 | exempt from the tax imposed
by this Act:
| ||||||
4 | (1) Farm chemicals.
| ||||||
5 | (2) Farm machinery and equipment, both new and used, | ||||||
6 | including that
manufactured on special order, certified by | ||||||
7 | the purchaser to be used
primarily for production | ||||||
8 | agriculture or State or federal agricultural
programs, | ||||||
9 | including individual replacement parts for the machinery | ||||||
10 | and
equipment, including machinery and equipment purchased | ||||||
11 | for lease,
and including implements of husbandry defined | ||||||
12 | in Section 1-130 of
the Illinois Vehicle Code, farm | ||||||
13 | machinery and agricultural chemical and
fertilizer | ||||||
14 | spreaders, and nurse wagons required to be registered
| ||||||
15 | under Section 3-809 of the Illinois Vehicle Code,
but
| ||||||
16 | excluding other motor vehicles required to be registered | ||||||
17 | under the Illinois
Vehicle Code.
Horticultural polyhouses | ||||||
18 | or hoop houses used for propagating, growing, or
| ||||||
19 | overwintering plants shall be considered farm machinery | ||||||
20 | and equipment under
this item (2).
Agricultural chemical | ||||||
21 | tender tanks and dry boxes shall include units sold
| ||||||
22 | separately from a motor vehicle required to be licensed | ||||||
23 | and units sold mounted
on a motor vehicle required to be | ||||||
24 | licensed, if the selling price of the tender
is separately | ||||||
25 | stated.
| ||||||
26 | Farm machinery and equipment shall include precision |
| |||||||
| |||||||
1 | farming equipment
that is
installed or purchased to be | ||||||
2 | installed on farm machinery and equipment
including, but | ||||||
3 | not limited to, tractors, harvesters, sprayers, planters,
| ||||||
4 | seeders, or spreaders.
Precision farming equipment | ||||||
5 | includes, but is not limited to,
soil testing sensors, | ||||||
6 | computers, monitors, software, global positioning
and | ||||||
7 | mapping systems, and other such equipment.
| ||||||
8 | Farm machinery and equipment also includes computers, | ||||||
9 | sensors, software, and
related equipment used primarily in | ||||||
10 | the
computer-assisted operation of production agriculture | ||||||
11 | facilities, equipment,
and activities such as, but
not | ||||||
12 | limited to,
the collection, monitoring, and correlation of
| ||||||
13 | animal and crop data for the purpose of
formulating animal | ||||||
14 | diets and agricultural chemicals. This item (2) is exempt
| ||||||
15 | from the provisions of
Section 2-70.
| ||||||
16 | (3) Until July 1, 2003, distillation machinery and | ||||||
17 | equipment, sold as a
unit or kit,
assembled or installed | ||||||
18 | by the retailer, certified by the user to be used
only for | ||||||
19 | the production of ethyl alcohol that will be used for | ||||||
20 | consumption
as motor fuel or as a component of motor fuel | ||||||
21 | for the personal use of the
user, and not subject to sale | ||||||
22 | or resale.
| ||||||
23 | (4) Until July 1, 2003 and beginning again September | ||||||
24 | 1, 2004 through August 30, 2014, graphic arts machinery | ||||||
25 | and equipment, including
repair and
replacement parts, | ||||||
26 | both new and used, and including that manufactured on
|
| |||||||
| |||||||
1 | special order or purchased for lease, certified by the | ||||||
2 | purchaser to be used
primarily for graphic arts | ||||||
3 | production.
Equipment includes chemicals or
chemicals | ||||||
4 | acting as catalysts but only if
the chemicals or chemicals | ||||||
5 | acting as catalysts effect a direct and immediate
change | ||||||
6 | upon a
graphic arts product. Beginning on July 1, 2017, | ||||||
7 | graphic arts machinery and equipment is included in the | ||||||
8 | manufacturing and assembling machinery and equipment | ||||||
9 | exemption under paragraph (14).
| ||||||
10 | (5) A motor vehicle that is used for automobile | ||||||
11 | renting, as defined in the Automobile Renting Occupation | ||||||
12 | and Use Tax Act. This paragraph is exempt from
the | ||||||
13 | provisions of Section 2-70.
| ||||||
14 | (6) Personal property sold by a teacher-sponsored | ||||||
15 | student organization
affiliated with an elementary or | ||||||
16 | secondary school located in Illinois.
| ||||||
17 | (7) Until July 1, 2003, proceeds of that portion of | ||||||
18 | the selling price of
a passenger car the
sale of which is | ||||||
19 | subject to the Replacement Vehicle Tax.
| ||||||
20 | (8) Personal property sold to an Illinois county fair | ||||||
21 | association for
use in conducting, operating, or promoting | ||||||
22 | the county fair.
| ||||||
23 | (9) Personal property sold to a not-for-profit arts
or | ||||||
24 | cultural organization that establishes, by proof required | ||||||
25 | by the Department
by
rule, that it has received an | ||||||
26 | exemption under Section 501(c)(3) of the
Internal Revenue |
| |||||||
| |||||||
1 | Code and that is organized and operated primarily for the
| ||||||
2 | presentation
or support of arts or cultural programming, | ||||||
3 | activities, or services. These
organizations include, but | ||||||
4 | are not limited to, music and dramatic arts
organizations | ||||||
5 | such as symphony orchestras and theatrical groups, arts | ||||||
6 | and
cultural service organizations, local arts councils, | ||||||
7 | visual arts organizations,
and media arts organizations.
| ||||||
8 | On and after July 1, 2001 (the effective date of Public Act | ||||||
9 | 92-35), however, an entity otherwise eligible for this | ||||||
10 | exemption shall not
make tax-free purchases unless it has | ||||||
11 | an active identification number issued by
the Department.
| ||||||
12 | (10) Personal property sold by a corporation, society, | ||||||
13 | association,
foundation, institution, or organization, | ||||||
14 | other than a limited liability
company, that is organized | ||||||
15 | and operated as a not-for-profit service enterprise
for | ||||||
16 | the benefit of persons 65 years of age or older if the | ||||||
17 | personal property
was not purchased by the enterprise for | ||||||
18 | the purpose of resale by the
enterprise.
| ||||||
19 | (11) Personal property sold to a governmental body, to | ||||||
20 | a corporation,
society, association, foundation, or | ||||||
21 | institution organized and operated
exclusively for | ||||||
22 | charitable, religious, or educational purposes, or to a
| ||||||
23 | not-for-profit corporation, society, association, | ||||||
24 | foundation, institution,
or organization that has no | ||||||
25 | compensated officers or employees and that is
organized | ||||||
26 | and operated primarily for the recreation of persons 55 |
| |||||||
| |||||||
1 | years of
age or older. A limited liability company may | ||||||
2 | qualify for the exemption under
this paragraph only if the | ||||||
3 | limited liability company is organized and operated
| ||||||
4 | exclusively for educational purposes. On and after July 1, | ||||||
5 | 1987, however, no
entity otherwise eligible for this | ||||||
6 | exemption shall make tax-free purchases
unless it has an | ||||||
7 | active identification number issued by the Department.
| ||||||
8 | (12) (Blank).
| ||||||
9 | (12-5) On and after July 1, 2003 and through June 30, | ||||||
10 | 2004, motor vehicles of the second division
with a gross | ||||||
11 | vehicle weight in excess of 8,000 pounds
that
are
subject | ||||||
12 | to the commercial distribution fee imposed under Section | ||||||
13 | 3-815.1 of
the Illinois
Vehicle Code. Beginning on July 1, | ||||||
14 | 2004 and through June 30, 2005, the use in this State of | ||||||
15 | motor vehicles of the second division: (i) with a gross | ||||||
16 | vehicle weight rating in excess of 8,000 pounds; (ii) that | ||||||
17 | are subject to the commercial distribution fee imposed | ||||||
18 | under Section 3-815.1 of the Illinois Vehicle Code; and | ||||||
19 | (iii) that are primarily used for commercial purposes. | ||||||
20 | Through June 30, 2005, this
exemption applies to repair | ||||||
21 | and replacement parts added
after the
initial purchase of | ||||||
22 | such a motor vehicle if that motor vehicle is used in a
| ||||||
23 | manner that
would qualify for the rolling stock exemption | ||||||
24 | otherwise provided for in this
Act. For purposes of this | ||||||
25 | paragraph, "used for commercial purposes" means the | ||||||
26 | transportation of persons or property in furtherance of |
| |||||||
| |||||||
1 | any commercial or industrial enterprise whether for-hire | ||||||
2 | or not.
| ||||||
3 | (13) Proceeds from sales to owners, lessors, or
| ||||||
4 | shippers of
tangible personal property that is utilized by | ||||||
5 | interstate carriers for
hire for use as rolling stock | ||||||
6 | moving in interstate commerce
and equipment operated by a | ||||||
7 | telecommunications provider, licensed as a
common carrier | ||||||
8 | by the Federal Communications Commission, which is
| ||||||
9 | permanently installed in or affixed to aircraft moving in | ||||||
10 | interstate commerce.
| ||||||
11 | (14) Machinery and equipment that will be used by the | ||||||
12 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
13 | process of manufacturing or
assembling tangible personal | ||||||
14 | property for wholesale or retail sale or
lease, whether | ||||||
15 | the sale or lease is made directly by the manufacturer or | ||||||
16 | by
some other person, whether the materials used in the | ||||||
17 | process are owned by
the manufacturer or some other | ||||||
18 | person, or whether the sale or lease is made
apart from or | ||||||
19 | as an incident to the seller's engaging in the service
| ||||||
20 | occupation of producing machines, tools, dies, jigs, | ||||||
21 | patterns, gauges, or
other similar items of no commercial | ||||||
22 | value on special order for a particular
purchaser. The | ||||||
23 | exemption provided by this paragraph (14) does not include | ||||||
24 | machinery and equipment used in (i) the generation of | ||||||
25 | electricity for wholesale or retail sale; (ii) the | ||||||
26 | generation or treatment of natural or artificial gas for |
| |||||||
| |||||||
1 | wholesale or retail sale that is delivered to customers | ||||||
2 | through pipes, pipelines, or mains; or (iii) the treatment | ||||||
3 | of water for wholesale or retail sale that is delivered to | ||||||
4 | customers through pipes, pipelines, or mains. The | ||||||
5 | provisions of Public Act 98-583 are declaratory of | ||||||
6 | existing law as to the meaning and scope of this | ||||||
7 | exemption. Beginning on July 1, 2017, the exemption | ||||||
8 | provided by this paragraph (14) includes, but is not | ||||||
9 | limited to, graphic arts machinery and equipment, as | ||||||
10 | defined in paragraph (4) of this Section.
| ||||||
11 | (15) Proceeds of mandatory service charges separately | ||||||
12 | stated on
customers' bills for purchase and consumption of | ||||||
13 | food and beverages, to the
extent that the proceeds of the | ||||||
14 | service charge are in fact turned over as
tips or as a | ||||||
15 | substitute for tips to the employees who participate | ||||||
16 | directly
in preparing, serving, hosting or cleaning up the | ||||||
17 | food or beverage function
with respect to which the | ||||||
18 | service charge is imposed.
| ||||||
19 | (16) Tangible personal property sold to a purchaser if | ||||||
20 | the purchaser is exempt from use tax by operation of | ||||||
21 | federal law. This paragraph is exempt from the provisions | ||||||
22 | of Section 2-70.
| ||||||
23 | (17) Tangible personal property sold to a common | ||||||
24 | carrier by rail or
motor that
receives the physical | ||||||
25 | possession of the property in Illinois and that
transports | ||||||
26 | the property, or shares with another common carrier in the
|
| |||||||
| |||||||
1 | transportation of the property, out of Illinois on a | ||||||
2 | standard uniform bill
of lading showing the seller of the | ||||||
3 | property as the shipper or consignor of
the property to a | ||||||
4 | destination outside Illinois, for use outside Illinois.
| ||||||
5 | (18) Legal tender, currency, medallions, or gold or | ||||||
6 | silver coinage
issued by the State of Illinois, the | ||||||
7 | government of the United States of
America, or the | ||||||
8 | government of any foreign country, and bullion.
| ||||||
9 | (19) Until July 1, 2003, oil field exploration, | ||||||
10 | drilling, and production
equipment, including
(i) rigs and | ||||||
11 | parts of rigs, rotary rigs, cable tool
rigs, and workover | ||||||
12 | rigs, (ii) pipe and tubular goods, including casing and
| ||||||
13 | drill strings, (iii) pumps and pump-jack units, (iv) | ||||||
14 | storage tanks and flow
lines, (v) any individual | ||||||
15 | replacement part for oil field exploration,
drilling, and | ||||||
16 | production equipment, and (vi) machinery and equipment | ||||||
17 | purchased
for lease; but
excluding motor vehicles required | ||||||
18 | to be registered under the Illinois
Vehicle Code.
| ||||||
19 | (20) Photoprocessing machinery and equipment, | ||||||
20 | including repair and
replacement parts, both new and used, | ||||||
21 | including that manufactured on
special order, certified by | ||||||
22 | the purchaser to be used primarily for
photoprocessing, | ||||||
23 | and including photoprocessing machinery and equipment
| ||||||
24 | purchased for lease.
| ||||||
25 | (21) Until July 1, 2028, coal and aggregate | ||||||
26 | exploration, mining, off-highway hauling,
processing,
|
| |||||||
| |||||||
1 | maintenance, and reclamation equipment, including
| ||||||
2 | replacement parts and equipment, and including
equipment | ||||||
3 | purchased for lease, but excluding motor vehicles required | ||||||
4 | to be
registered under the Illinois Vehicle Code. The | ||||||
5 | changes made to this Section by Public Act 97-767 apply on | ||||||
6 | and after July 1, 2003, but no claim for credit or refund | ||||||
7 | is allowed on or after August 16, 2013 (the effective date | ||||||
8 | of Public Act 98-456)
for such taxes paid during the | ||||||
9 | period beginning July 1, 2003 and ending on August 16, | ||||||
10 | 2013 (the effective date of Public Act 98-456).
| ||||||
11 | (22) Until June 30, 2013, fuel and petroleum products | ||||||
12 | sold to or used by an air carrier,
certified by the carrier | ||||||
13 | to be used for consumption, shipment, or storage
in the | ||||||
14 | conduct of its business as an air common carrier, for a | ||||||
15 | flight
destined for or returning from a location or | ||||||
16 | locations
outside the United States without regard to | ||||||
17 | previous or subsequent domestic
stopovers.
| ||||||
18 | Beginning July 1, 2013, fuel and petroleum products | ||||||
19 | sold to or used by an air carrier, certified by the carrier | ||||||
20 | to be used for consumption, shipment, or storage in the | ||||||
21 | conduct of its business as an air common carrier, for a | ||||||
22 | flight that (i) is engaged in foreign trade or is engaged | ||||||
23 | in trade between the United States and any of its | ||||||
24 | possessions and (ii) transports at least one individual or | ||||||
25 | package for hire from the city of origination to the city | ||||||
26 | of final destination on the same aircraft, without regard |
| |||||||
| |||||||
1 | to a change in the flight number of that aircraft. | ||||||
2 | (23) A transaction in which the purchase order is | ||||||
3 | received by a florist
who is located outside Illinois, but | ||||||
4 | who has a florist located in Illinois
deliver the property | ||||||
5 | to the purchaser or the purchaser's donee in Illinois.
| ||||||
6 | (24) Fuel consumed or used in the operation of ships, | ||||||
7 | barges, or vessels
that are used primarily in or for the | ||||||
8 | transportation of property or the
conveyance of persons | ||||||
9 | for hire on rivers bordering on this State if the
fuel is | ||||||
10 | delivered by the seller to the purchaser's barge, ship, or | ||||||
11 | vessel
while it is afloat upon that bordering river.
| ||||||
12 | (25) Except as provided in item (25-5) of this | ||||||
13 | Section, a
motor vehicle sold in this State to a | ||||||
14 | nonresident even though the
motor vehicle is delivered to | ||||||
15 | the nonresident in this State, if the motor
vehicle is not | ||||||
16 | to be titled in this State, and if a drive-away permit
is | ||||||
17 | issued to the motor vehicle as provided in Section 3-603 | ||||||
18 | of the Illinois
Vehicle Code or if the nonresident | ||||||
19 | purchaser has vehicle registration
plates to transfer to | ||||||
20 | the motor vehicle upon returning to his or her home
state. | ||||||
21 | The issuance of the drive-away permit or having
the
| ||||||
22 | out-of-state registration plates to be transferred is | ||||||
23 | prima facie evidence
that the motor vehicle will not be | ||||||
24 | titled in this State.
| ||||||
25 | (25-5) The exemption under item (25) does not apply if | ||||||
26 | the state in which the motor vehicle will be titled does |
| |||||||
| |||||||
1 | not allow a reciprocal exemption for a motor vehicle sold | ||||||
2 | and delivered in that state to an Illinois resident but | ||||||
3 | titled in Illinois. The tax collected under this Act on | ||||||
4 | the sale of a motor vehicle in this State to a resident of | ||||||
5 | another state that does not allow a reciprocal exemption | ||||||
6 | shall be imposed at a rate equal to the state's rate of tax | ||||||
7 | on taxable property in the state in which the purchaser is | ||||||
8 | a resident, except that the tax shall not exceed the tax | ||||||
9 | that would otherwise be imposed under this Act. At the | ||||||
10 | time of the sale, the purchaser shall execute a statement, | ||||||
11 | signed under penalty of perjury, of his or her intent to | ||||||
12 | title the vehicle in the state in which the purchaser is a | ||||||
13 | resident within 30 days after the sale and of the fact of | ||||||
14 | the payment to the State of Illinois of tax in an amount | ||||||
15 | equivalent to the state's rate of tax on taxable property | ||||||
16 | in his or her state of residence and shall submit the | ||||||
17 | statement to the appropriate tax collection agency in his | ||||||
18 | or her state of residence. In addition, the retailer must | ||||||
19 | retain a signed copy of the statement in his or her | ||||||
20 | records. Nothing in this item shall be construed to | ||||||
21 | require the removal of the vehicle from this state | ||||||
22 | following the filing of an intent to title the vehicle in | ||||||
23 | the purchaser's state of residence if the purchaser titles | ||||||
24 | the vehicle in his or her state of residence within 30 days | ||||||
25 | after the date of sale. The tax collected under this Act in | ||||||
26 | accordance with this item (25-5) shall be proportionately |
| |||||||
| |||||||
1 | distributed as if the tax were collected at the 6.25% | ||||||
2 | general rate imposed under this Act.
| ||||||
3 | (25-7) Beginning on July 1, 2007, no tax is imposed | ||||||
4 | under this Act on the sale of an aircraft, as defined in | ||||||
5 | Section 3 of the Illinois Aeronautics Act, if all of the | ||||||
6 | following conditions are met: | ||||||
7 | (1) the aircraft leaves this State within 15 days | ||||||
8 | after the later of either the issuance of the final | ||||||
9 | billing for the sale of the aircraft, or the | ||||||
10 | authorized approval for return to service, completion | ||||||
11 | of the maintenance record entry, and completion of the | ||||||
12 | test flight and ground test for inspection, as | ||||||
13 | required by 14 CFR C.F.R. 91.407; | ||||||
14 | (2) the aircraft is not based or registered in | ||||||
15 | this State after the sale of the aircraft; and | ||||||
16 | (3) the seller retains in his or her books and | ||||||
17 | records and provides to the Department a signed and | ||||||
18 | dated certification from the purchaser, on a form | ||||||
19 | prescribed by the Department, certifying that the | ||||||
20 | requirements of this item (25-7) are met. The | ||||||
21 | certificate must also include the name and address of | ||||||
22 | the purchaser, the address of the location where the | ||||||
23 | aircraft is to be titled or registered, the address of | ||||||
24 | the primary physical location of the aircraft, and | ||||||
25 | other information that the Department may reasonably | ||||||
26 | require. |
| |||||||
| |||||||
1 | For purposes of this item (25-7): | ||||||
2 | "Based in this State" means hangared, stored, or | ||||||
3 | otherwise used, excluding post-sale customizations as | ||||||
4 | defined in this Section, for 10 or more days in each | ||||||
5 | 12-month period immediately following the date of the sale | ||||||
6 | of the aircraft. | ||||||
7 | "Registered in this State" means an aircraft | ||||||
8 | registered with the Department of Transportation, | ||||||
9 | Aeronautics Division, or titled or registered with the | ||||||
10 | Federal Aviation Administration to an address located in | ||||||
11 | this State. | ||||||
12 | This paragraph (25-7) is exempt from the provisions
of
| ||||||
13 | Section 2-70.
| ||||||
14 | (26) Semen used for artificial insemination of | ||||||
15 | livestock for direct
agricultural production.
| ||||||
16 | (27) Horses, or interests in horses, registered with | ||||||
17 | and meeting the
requirements of any of the
Arabian Horse | ||||||
18 | Club Registry of America, Appaloosa Horse Club, American | ||||||
19 | Quarter
Horse Association, United States
Trotting | ||||||
20 | Association, or Jockey Club, as appropriate, used for
| ||||||
21 | purposes of breeding or racing for prizes. This item (27) | ||||||
22 | is exempt from the provisions of Section 2-70, and the | ||||||
23 | exemption provided for under this item (27) applies for | ||||||
24 | all periods beginning May 30, 1995, but no claim for | ||||||
25 | credit or refund is allowed on or after January 1, 2008 | ||||||
26 | (the effective date of Public Act 95-88)
for such taxes |
| |||||||
| |||||||
1 | paid during the period beginning May 30, 2000 and ending | ||||||
2 | on January 1, 2008 (the effective date of Public Act | ||||||
3 | 95-88).
| ||||||
4 | (28) Computers and communications equipment utilized | ||||||
5 | for any
hospital
purpose
and equipment used in the | ||||||
6 | diagnosis,
analysis, or treatment of hospital patients | ||||||
7 | sold to a lessor who leases the
equipment, under a lease of | ||||||
8 | one year or longer executed or in effect at the
time of the | ||||||
9 | purchase, to a
hospital
that has been issued an active tax | ||||||
10 | exemption identification number by the
Department under | ||||||
11 | Section 1g of this Act.
| ||||||
12 | (29) Personal property sold to a lessor who leases the
| ||||||
13 | property, under a
lease of one year or longer executed or | ||||||
14 | in effect at the time of the purchase,
to a governmental | ||||||
15 | body
that has been issued an active tax exemption | ||||||
16 | identification number by the
Department under Section 1g | ||||||
17 | of this Act.
| ||||||
18 | (30) Beginning with taxable years ending on or after | ||||||
19 | December
31, 1995
and
ending with taxable years ending on | ||||||
20 | or before December 31, 2004,
personal property that is
| ||||||
21 | donated for disaster relief to be used in a State or | ||||||
22 | federally declared
disaster area in Illinois or bordering | ||||||
23 | Illinois by a manufacturer or retailer
that is registered | ||||||
24 | in this State to a corporation, society, association,
| ||||||
25 | foundation, or institution that has been issued a sales | ||||||
26 | tax exemption
identification number by the Department that |
| |||||||
| |||||||
1 | assists victims of the disaster
who reside within the | ||||||
2 | declared disaster area.
| ||||||
3 | (31) Beginning with taxable years ending on or after | ||||||
4 | December
31, 1995 and
ending with taxable years ending on | ||||||
5 | or before December 31, 2004, personal
property that is | ||||||
6 | used in the performance of infrastructure repairs in this
| ||||||
7 | State, including but not limited to municipal roads and | ||||||
8 | streets, access roads,
bridges, sidewalks, waste disposal | ||||||
9 | systems, water and sewer line extensions,
water | ||||||
10 | distribution and purification facilities, storm water | ||||||
11 | drainage and
retention facilities, and sewage treatment | ||||||
12 | facilities, resulting from a State
or federally declared | ||||||
13 | disaster in Illinois or bordering Illinois when such
| ||||||
14 | repairs are initiated on facilities located in the | ||||||
15 | declared disaster area
within 6 months after the disaster.
| ||||||
16 | (32) Beginning July 1, 1999, game or game birds sold | ||||||
17 | at a "game breeding
and
hunting preserve area" as that | ||||||
18 | term is used
in the
Wildlife Code. This paragraph is | ||||||
19 | exempt from the provisions
of
Section 2-70.
| ||||||
20 | (33) A motor vehicle, as that term is defined in | ||||||
21 | Section 1-146
of the
Illinois Vehicle Code, that is | ||||||
22 | donated to a corporation, limited liability
company, | ||||||
23 | society, association, foundation, or institution that is | ||||||
24 | determined by
the Department to be organized and operated | ||||||
25 | exclusively for educational
purposes. For purposes of this | ||||||
26 | exemption, "a corporation, limited liability
company, |
| |||||||
| |||||||
1 | society, association, foundation, or institution organized | ||||||
2 | and
operated
exclusively for educational purposes" means | ||||||
3 | all tax-supported public schools,
private schools that | ||||||
4 | offer systematic instruction in useful branches of
| ||||||
5 | learning by methods common to public schools and that | ||||||
6 | compare favorably in
their scope and intensity with the | ||||||
7 | course of study presented in tax-supported
schools, and | ||||||
8 | vocational or technical schools or institutes organized | ||||||
9 | and
operated exclusively to provide a course of study of | ||||||
10 | not less than 6 weeks
duration and designed to prepare | ||||||
11 | individuals to follow a trade or to pursue a
manual, | ||||||
12 | technical, mechanical, industrial, business, or commercial
| ||||||
13 | occupation.
| ||||||
14 | (34) Beginning January 1, 2000, personal property, | ||||||
15 | including food, purchased
through fundraising events for | ||||||
16 | the benefit of a public or private elementary or
secondary | ||||||
17 | school, a group of those schools, or one or more school | ||||||
18 | districts if
the events are sponsored by an entity | ||||||
19 | recognized by the school district that
consists primarily | ||||||
20 | of volunteers and includes parents and teachers of the
| ||||||
21 | school children. This paragraph does not apply to | ||||||
22 | fundraising events (i) for
the benefit of private home | ||||||
23 | instruction or (ii) for which the fundraising
entity | ||||||
24 | purchases the personal property sold at the events from | ||||||
25 | another
individual or entity that sold the property for | ||||||
26 | the purpose of resale by the
fundraising entity and that |
| |||||||
| |||||||
1 | profits from the sale to the fundraising entity.
This | ||||||
2 | paragraph is exempt from the provisions of Section 2-70.
| ||||||
3 | (35) Beginning January 1, 2000 and through December | ||||||
4 | 31, 2001, new or used
automatic vending machines that | ||||||
5 | prepare and serve hot food and beverages,
including | ||||||
6 | coffee, soup, and other items, and replacement parts for | ||||||
7 | these
machines. Beginning January 1, 2002 and through June | ||||||
8 | 30, 2003, machines
and parts for machines used in
| ||||||
9 | commercial, coin-operated amusement and vending business | ||||||
10 | if a use or occupation
tax is paid on the gross receipts | ||||||
11 | derived from the use of the commercial,
coin-operated | ||||||
12 | amusement and vending machines. This paragraph is exempt | ||||||
13 | from
the provisions of Section 2-70.
| ||||||
14 | (35-5) Beginning August 23, 2001 and through June 30, | ||||||
15 | 2016, food for human consumption that is to be consumed | ||||||
16 | off
the premises where it is sold (other than alcoholic | ||||||
17 | beverages, soft drinks,
and food that has been prepared | ||||||
18 | for immediate consumption) and prescription
and | ||||||
19 | nonprescription medicines, drugs, medical appliances, and | ||||||
20 | insulin, urine
testing materials, syringes, and needles | ||||||
21 | used by diabetics, for human use, when
purchased for use | ||||||
22 | by a person receiving medical assistance under Article V | ||||||
23 | of
the Illinois Public Aid Code who resides in a licensed | ||||||
24 | long-term care facility,
as defined in the Nursing Home | ||||||
25 | Care Act, or a licensed facility as defined in the ID/DD | ||||||
26 | Community Care Act, the MC/DD Act, or the Specialized |
| |||||||
| |||||||
1 | Mental Health Rehabilitation Act of 2013.
| ||||||
2 | (36) Beginning August 2, 2001, computers and | ||||||
3 | communications equipment
utilized for any hospital purpose | ||||||
4 | and equipment used in the diagnosis,
analysis, or | ||||||
5 | treatment of hospital patients sold to a lessor who leases | ||||||
6 | the
equipment, under a lease of one year or longer | ||||||
7 | executed or in effect at the
time of the purchase, to a | ||||||
8 | hospital that has been issued an active tax
exemption | ||||||
9 | identification number by the Department under Section 1g | ||||||
10 | of this Act.
This paragraph is exempt from the provisions | ||||||
11 | of Section 2-70.
| ||||||
12 | (37) Beginning August 2, 2001, personal property sold | ||||||
13 | to a lessor who
leases the property, under a lease of one | ||||||
14 | year or longer executed or in effect
at the time of the | ||||||
15 | purchase, to a governmental body that has been issued an
| ||||||
16 | active tax exemption identification number by the | ||||||
17 | Department under Section 1g
of this Act. This paragraph is | ||||||
18 | exempt from the provisions of Section 2-70.
| ||||||
19 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
20 | 2016, tangible personal property purchased
from an | ||||||
21 | Illinois retailer by a taxpayer engaged in centralized | ||||||
22 | purchasing
activities in Illinois who will, upon receipt | ||||||
23 | of the property in Illinois,
temporarily store the | ||||||
24 | property in Illinois (i) for the purpose of subsequently
| ||||||
25 | transporting it outside this State for use or consumption | ||||||
26 | thereafter solely
outside this State or (ii) for the |
| |||||||
| |||||||
1 | purpose of being processed, fabricated, or
manufactured | ||||||
2 | into, attached to, or incorporated into other tangible | ||||||
3 | personal
property to be transported outside this State and | ||||||
4 | thereafter used or consumed
solely outside this State. The | ||||||
5 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
6 | accordance with the Illinois Administrative Procedure Act, | ||||||
7 | issue a
permit to any taxpayer in good standing with the | ||||||
8 | Department who is eligible for
the exemption under this | ||||||
9 | paragraph (38). The permit issued under
this paragraph | ||||||
10 | (38) shall authorize the holder, to the extent and
in the | ||||||
11 | manner specified in the rules adopted under this Act, to | ||||||
12 | purchase
tangible personal property from a retailer exempt | ||||||
13 | from the taxes imposed by
this Act. Taxpayers shall | ||||||
14 | maintain all necessary books and records to
substantiate | ||||||
15 | the use and consumption of all such tangible personal | ||||||
16 | property
outside of the State of Illinois.
| ||||||
17 | (39) Beginning January 1, 2008, tangible personal | ||||||
18 | property used in the construction or maintenance of a | ||||||
19 | community water supply, as defined under Section 3.145 of | ||||||
20 | the Environmental Protection Act, that is operated by a | ||||||
21 | not-for-profit corporation that holds a valid water supply | ||||||
22 | permit issued under Title IV of the Environmental | ||||||
23 | Protection Act. This paragraph is exempt from the | ||||||
24 | provisions of Section 2-70.
| ||||||
25 | (40) Beginning January 1, 2010 and continuing through | ||||||
26 | December 31, 2029 December 31, 2024 , materials, parts, |
| |||||||
| |||||||
1 | equipment, components, and furnishings incorporated into | ||||||
2 | or upon an aircraft as part of the modification, | ||||||
3 | refurbishment, completion, replacement, repair, or | ||||||
4 | maintenance of the aircraft. This exemption includes | ||||||
5 | consumable supplies used in the modification, | ||||||
6 | refurbishment, completion, replacement, repair, and | ||||||
7 | maintenance of aircraft . However, until January 1, 2024, | ||||||
8 | this exemption , but excludes any materials, parts, | ||||||
9 | equipment, components, and consumable supplies used in the | ||||||
10 | modification, replacement, repair, and maintenance of | ||||||
11 | aircraft engines or power plants, whether such engines or | ||||||
12 | power plants are installed or uninstalled upon any such | ||||||
13 | aircraft. "Consumable supplies" include, but are not | ||||||
14 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
15 | lubricants, cleaning solution, latex gloves, and | ||||||
16 | protective films. | ||||||
17 | Beginning January 1, 2010 and continuing through | ||||||
18 | December 31, 2023, this This exemption applies only to the | ||||||
19 | sale of qualifying tangible personal property to persons | ||||||
20 | who modify, refurbish, complete, replace, or maintain an | ||||||
21 | aircraft and who (i) hold an Air Agency Certificate and | ||||||
22 | are empowered to operate an approved repair station by the | ||||||
23 | Federal Aviation Administration, (ii) have a Class IV | ||||||
24 | Rating, and (iii) conduct operations in accordance with | ||||||
25 | Part 145 of the Federal Aviation Regulations. The | ||||||
26 | exemption does not include aircraft operated by a |
| |||||||
| |||||||
1 | commercial air carrier providing scheduled passenger air | ||||||
2 | service pursuant to authority issued under Part 121 or | ||||||
3 | Part 129 of the Federal Aviation Regulations. From January | ||||||
4 | 1, 2024 through December 31, 2029, this exemption applies | ||||||
5 | only to the use of qualifying tangible personal property | ||||||
6 | by: (A) persons who modify, refurbish, complete, repair, | ||||||
7 | replace, or maintain aircraft and who (i) hold an Air | ||||||
8 | Agency Certificate and are empowered to operate an | ||||||
9 | approved repair station by the Federal Aviation | ||||||
10 | Administration, (ii) have a Class IV Rating, and (iii) | ||||||
11 | conduct operations in accordance with Part 145 of the | ||||||
12 | Federal Aviation Regulations; and (B) persons who engage | ||||||
13 | in the modification, replacement, repair, and maintenance | ||||||
14 | of aircraft engines or power plants without regard to | ||||||
15 | whether or not those persons meet the qualifications of | ||||||
16 | item (A). | ||||||
17 | The changes made to this paragraph (40) by Public Act | ||||||
18 | 98-534 are declarative of existing law. It is the intent | ||||||
19 | of the General Assembly that the exemption under this | ||||||
20 | paragraph (40) applies continuously from January 1, 2010 | ||||||
21 | through December 31, 2024; however, no claim for credit or | ||||||
22 | refund is allowed for taxes paid as a result of the | ||||||
23 | disallowance of this exemption on or after January 1, 2015 | ||||||
24 | and prior to February 5, 2020 ( the effective date of | ||||||
25 | Public Act 101-629) this amendatory Act of the 101st | ||||||
26 | General Assembly . |
| |||||||
| |||||||
1 | (41) Tangible personal property sold to a | ||||||
2 | public-facilities corporation, as described in Section | ||||||
3 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
4 | constructing or furnishing a municipal convention hall, | ||||||
5 | but only if the legal title to the municipal convention | ||||||
6 | hall is transferred to the municipality without any | ||||||
7 | further consideration by or on behalf of the municipality | ||||||
8 | at the time of the completion of the municipal convention | ||||||
9 | hall or upon the retirement or redemption of any bonds or | ||||||
10 | other debt instruments issued by the public-facilities | ||||||
11 | corporation in connection with the development of the | ||||||
12 | municipal convention hall. This exemption includes | ||||||
13 | existing public-facilities corporations as provided in | ||||||
14 | Section 11-65-25 of the Illinois Municipal Code. This | ||||||
15 | paragraph is exempt from the provisions of Section 2-70. | ||||||
16 | (42) Beginning January 1, 2017 and through December | ||||||
17 | 31, 2026, menstrual pads, tampons, and menstrual cups. | ||||||
18 | (43) Merchandise that is subject to the Rental | ||||||
19 | Purchase Agreement Occupation and Use Tax. The purchaser | ||||||
20 | must certify that the item is purchased to be rented | ||||||
21 | subject to a rental purchase agreement, as defined in the | ||||||
22 | Rental Purchase Agreement Act, and provide proof of | ||||||
23 | registration under the Rental Purchase Agreement | ||||||
24 | Occupation and Use Tax Act. This paragraph is exempt from | ||||||
25 | the provisions of Section 2-70. | ||||||
26 | (44) Qualified tangible personal property used in the |
| |||||||
| |||||||
1 | construction or operation of a data center that has been | ||||||
2 | granted a certificate of exemption by the Department of | ||||||
3 | Commerce and Economic Opportunity, whether that tangible | ||||||
4 | personal property is purchased by the owner, operator, or | ||||||
5 | tenant of the data center or by a contractor or | ||||||
6 | subcontractor of the owner, operator, or tenant. Data | ||||||
7 | centers that would have qualified for a certificate of | ||||||
8 | exemption prior to January 1, 2020 had Public Act 101-31 | ||||||
9 | this amendatory Act of the 101st General Assembly been in | ||||||
10 | effect, may apply for and obtain an exemption for | ||||||
11 | subsequent purchases of computer equipment or enabling | ||||||
12 | software purchased or leased to upgrade, supplement, or | ||||||
13 | replace computer equipment or enabling software purchased | ||||||
14 | or leased in the original investment that would have | ||||||
15 | qualified. | ||||||
16 | The Department of Commerce and Economic Opportunity | ||||||
17 | shall grant a certificate of exemption under this item | ||||||
18 | (44) to qualified data centers as defined by Section | ||||||
19 | 605-1025 of the Department of Commerce and Economic | ||||||
20 | Opportunity Law of the
Civil Administrative Code of | ||||||
21 | Illinois. | ||||||
22 | For the purposes of this item (44): | ||||||
23 | "Data center" means a building or a series of | ||||||
24 | buildings rehabilitated or constructed to house | ||||||
25 | working servers in one physical location or multiple | ||||||
26 | sites within the State of Illinois. |
| |||||||
| |||||||
1 | "Qualified tangible personal property" means: | ||||||
2 | electrical systems and equipment; climate control and | ||||||
3 | chilling equipment and systems; mechanical systems and | ||||||
4 | equipment; monitoring and secure systems; emergency | ||||||
5 | generators; hardware; computers; servers; data storage | ||||||
6 | devices; network connectivity equipment; racks; | ||||||
7 | cabinets; telecommunications cabling infrastructure; | ||||||
8 | raised floor systems; peripheral components or | ||||||
9 | systems; software; mechanical, electrical, or plumbing | ||||||
10 | systems; battery systems; cooling systems and towers; | ||||||
11 | temperature control systems; other cabling; and other | ||||||
12 | data center infrastructure equipment and systems | ||||||
13 | necessary to operate qualified tangible personal | ||||||
14 | property, including fixtures; and component parts of | ||||||
15 | any of the foregoing, including installation, | ||||||
16 | maintenance, repair, refurbishment, and replacement of | ||||||
17 | qualified tangible personal property to generate, | ||||||
18 | transform, transmit, distribute, or manage electricity | ||||||
19 | necessary to operate qualified tangible personal | ||||||
20 | property; and all other tangible personal property | ||||||
21 | that is essential to the operations of a computer data | ||||||
22 | center. The term "qualified tangible personal | ||||||
23 | property" also includes building materials physically | ||||||
24 | incorporated into the qualifying data center. To | ||||||
25 | document the exemption allowed under this Section, the | ||||||
26 | retailer must obtain from the purchaser a copy of the |
| |||||||
| |||||||
1 | certificate of eligibility issued by the Department of | ||||||
2 | Commerce and Economic Opportunity. | ||||||
3 | This item (44) is exempt from the provisions of | ||||||
4 | Section 2-70. | ||||||
5 | (45) Beginning January 1, 2020 and through December | ||||||
6 | 31, 2020, sales of tangible personal property made by a | ||||||
7 | marketplace seller over a marketplace for which tax is due | ||||||
8 | under this Act but for which use tax has been collected and | ||||||
9 | remitted to the Department by a marketplace facilitator | ||||||
10 | under Section 2d of the Use Tax Act are exempt from tax | ||||||
11 | under this Act. A marketplace seller claiming this | ||||||
12 | exemption shall maintain books and records demonstrating | ||||||
13 | that the use tax on such sales has been collected and | ||||||
14 | remitted by a marketplace facilitator. Marketplace sellers | ||||||
15 | that have properly remitted tax under this Act on such | ||||||
16 | sales may file a claim for credit as provided in Section 6 | ||||||
17 | of this Act. No claim is allowed, however, for such taxes | ||||||
18 | for which a credit or refund has been issued to the | ||||||
19 | marketplace facilitator under the Use Tax Act, or for | ||||||
20 | which the marketplace facilitator has filed a claim for | ||||||
21 | credit or refund under the Use Tax Act. | ||||||
22 | (46) Beginning July 1, 2022, breast pumps, breast pump | ||||||
23 | collection and storage supplies, and breast pump kits. | ||||||
24 | This item (46) is exempt from the provisions of Section | ||||||
25 | 2-70. As used in this item (46): | ||||||
26 | "Breast pump" means an electrically controlled or |
| |||||||
| |||||||
1 | manually controlled pump device designed or marketed to be | ||||||
2 | used to express milk from a human breast during lactation, | ||||||
3 | including the pump device and any battery, AC adapter, or | ||||||
4 | other power supply unit that is used to power the pump | ||||||
5 | device and is packaged and sold with the pump device at the | ||||||
6 | time of sale. | ||||||
7 | "Breast pump collection and storage supplies" means | ||||||
8 | items of tangible personal property designed or marketed | ||||||
9 | to be used in conjunction with a breast pump to collect | ||||||
10 | milk expressed from a human breast and to store collected | ||||||
11 | milk until it is ready for consumption. | ||||||
12 | "Breast pump collection and storage supplies" | ||||||
13 | includes, but is not limited to: breast shields and breast | ||||||
14 | shield connectors; breast pump tubes and tubing adapters; | ||||||
15 | breast pump valves and membranes; backflow protectors and | ||||||
16 | backflow protector adaptors; bottles and bottle caps | ||||||
17 | specific to the operation of the breast pump; and breast | ||||||
18 | milk storage bags. | ||||||
19 | "Breast pump collection and storage supplies" does not | ||||||
20 | include: (1) bottles and bottle caps not specific to the | ||||||
21 | operation of the breast pump; (2) breast pump travel bags | ||||||
22 | and other similar carrying accessories, including ice | ||||||
23 | packs, labels, and other similar products; (3) breast pump | ||||||
24 | cleaning supplies; (4) nursing bras, bra pads, breast | ||||||
25 | shells, and other similar products; and (5) creams, | ||||||
26 | ointments, and other similar products that relieve |
| |||||||
| |||||||
1 | breastfeeding-related symptoms or conditions of the | ||||||
2 | breasts or nipples, unless sold as part of a breast pump | ||||||
3 | kit that is pre-packaged by the breast pump manufacturer | ||||||
4 | or distributor. | ||||||
5 | "Breast pump kit" means a kit that: (1) contains no | ||||||
6 | more than a breast pump, breast pump collection and | ||||||
7 | storage supplies, a rechargeable battery for operating the | ||||||
8 | breast pump, a breastmilk cooler, bottle stands, ice | ||||||
9 | packs, and a breast pump carrying case; and (2) is | ||||||
10 | pre-packaged as a breast pump kit by the breast pump | ||||||
11 | manufacturer or distributor. | ||||||
12 | (47) (46) Tangible personal property sold by or on | ||||||
13 | behalf of the State Treasurer pursuant to the Revised | ||||||
14 | Uniform Unclaimed Property Act. This item (47) (46) is | ||||||
15 | exempt from the provisions of Section 2-70. | ||||||
16 | (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; | ||||||
17 | 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff. | ||||||
18 | 8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22; | ||||||
19 | 102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813, | ||||||
20 | eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
| ||||||
21 | ARTICLE 10. ETHANOL BLENDED FUEL | ||||||
22 | Section 10-5. The Use Tax Act is amended by changing | ||||||
23 | Sections 3-10, 3-40, and 3-44 and by adding Section 3-44.3 as | ||||||
24 | follows:
|
| |||||||
| |||||||
1 | (35 ILCS 105/3-10)
| ||||||
2 | Sec. 3-10. Rate of tax. Unless otherwise provided in this | ||||||
3 | Section, the tax
imposed by this Act is at the rate of 6.25% of | ||||||
4 | either the selling price or the
fair market value, if any, of | ||||||
5 | the tangible personal property. In all cases
where property | ||||||
6 | functionally used or consumed is the same as the property that
| ||||||
7 | was purchased at retail, then the tax is imposed on the selling | ||||||
8 | price of the
property. In all cases where property | ||||||
9 | functionally used or consumed is a
by-product or waste product | ||||||
10 | that has been refined, manufactured, or produced
from property | ||||||
11 | purchased at retail, then the tax is imposed on the lower of | ||||||
12 | the
fair market value, if any, of the specific property so used | ||||||
13 | in this State or on
the selling price of the property purchased | ||||||
14 | at retail. For purposes of this
Section "fair market value" | ||||||
15 | means the price at which property would change
hands between a | ||||||
16 | willing buyer and a willing seller, neither being under any
| ||||||
17 | compulsion to buy or sell and both having reasonable knowledge | ||||||
18 | of the
relevant facts. The fair market value shall be | ||||||
19 | established by Illinois sales by
the taxpayer of the same | ||||||
20 | property as that functionally used or consumed, or if
there | ||||||
21 | are no such sales by the taxpayer, then comparable sales or | ||||||
22 | purchases of
property of like kind and character in Illinois.
| ||||||
23 | Beginning on July 1, 2000 and through December 31, 2000, | ||||||
24 | with respect to
motor fuel, as defined in Section 1.1 of the | ||||||
25 | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of |
| |||||||
| |||||||
1 | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| ||||||
2 | Beginning on August 6, 2010 through August 15, 2010, and | ||||||
3 | beginning again on August 5, 2022 through August 14, 2022, | ||||||
4 | with respect to sales tax holiday items as defined in Section | ||||||
5 | 3-6 of this Act, the
tax is imposed at the rate of 1.25%. | ||||||
6 | With respect to gasohol, the tax imposed by this Act | ||||||
7 | applies to (i) 70%
of the proceeds of sales made on or after | ||||||
8 | January 1, 1990, and before
July 1, 2003, (ii) 80% of the | ||||||
9 | proceeds of sales made
on or after July 1, 2003 and on or | ||||||
10 | before July 1, 2017, and (iii) 100% of the proceeds of sales | ||||||
11 | made
after July 1, 2017 and prior to January 1, 2024, (iv) 90% | ||||||
12 | of the proceeds of sales made on or after January 1, 2024 and | ||||||
13 | on or before December 31, 2028, and (v) 100% of the proceeds of | ||||||
14 | sales made after December 31, 2028 thereafter .
If, at any | ||||||
15 | time, however, the tax under this Act on sales of gasohol is
| ||||||
16 | imposed at the
rate of 1.25%, then the tax imposed by this Act | ||||||
17 | applies to 100% of the proceeds
of sales of gasohol made during | ||||||
18 | that time.
| ||||||
19 | With respect to mid-range ethanol blends, the tax imposed | ||||||
20 | by this Act applies to (i) 80% of the proceeds of sales made on | ||||||
21 | or after January 1, 2024 and on or before December 31, 2028 and | ||||||
22 | (ii) 100% of the proceeds of sales made thereafter. If, at any | ||||||
23 | time, however, the tax under this Act on sales of mid-range | ||||||
24 | ethanol blends is imposed at the rate of 1.25%, then the tax | ||||||
25 | imposed by this Act applies to 100% of the proceeds of sales of | ||||||
26 | mid-range ethanol blends made during that time. |
| |||||||
| |||||||
1 | With respect to majority blended ethanol fuel, the tax | ||||||
2 | imposed by this Act
does
not apply
to the proceeds of sales | ||||||
3 | made on or after July 1, 2003 and on or before
December 31, | ||||||
4 | 2028 December 31, 2023 but applies to 100% of the proceeds of | ||||||
5 | sales made thereafter.
| ||||||
6 | With respect to biodiesel blends with no less than 1% and | ||||||
7 | no more than 10%
biodiesel, the tax imposed by this Act applies | ||||||
8 | to (i) 80% of the
proceeds of sales made on or after July 1, | ||||||
9 | 2003 and on or before December 31, 2018
and (ii) 100% of the | ||||||
10 | proceeds of sales made
after December 31, 2018 and before | ||||||
11 | January 1, 2024. On and after January 1, 2024 and on or before | ||||||
12 | December 31, 2030, the taxation of biodiesel, renewable | ||||||
13 | diesel, and biodiesel blends shall be as provided in Section | ||||||
14 | 3-5.1.
If, at any time, however, the tax under this Act on | ||||||
15 | sales of biodiesel blends
with no less than 1% and no more than | ||||||
16 | 10% biodiesel
is imposed at the rate of
1.25%, then the
tax | ||||||
17 | imposed by this Act applies to 100% of the proceeds of sales of | ||||||
18 | biodiesel
blends with no less than 1% and no more than 10% | ||||||
19 | biodiesel
made
during that time.
| ||||||
20 | With respect to biodiesel and biodiesel blends with more | ||||||
21 | than 10%
but no more than 99% biodiesel, the tax imposed by | ||||||
22 | this Act does not apply to
the
proceeds of sales made on or | ||||||
23 | after July 1, 2003 and on or before
December 31, 2023. On and | ||||||
24 | after January 1, 2024 and on or before December 31, 2030, the | ||||||
25 | taxation of biodiesel, renewable diesel, and biodiesel blends | ||||||
26 | shall be as provided in Section 3-5.1.
|
| |||||||
| |||||||
1 | Until July 1, 2022 and beginning again on July 1, 2023, | ||||||
2 | with respect to food for human consumption that is to be | ||||||
3 | consumed off the
premises where it is sold (other than | ||||||
4 | alcoholic beverages, food consisting of or infused with adult | ||||||
5 | use cannabis, soft drinks, and
food that has been prepared for | ||||||
6 | immediate consumption), the tax is imposed at the rate of 1%. | ||||||
7 | Beginning on July 1, 2022 and until July 1, 2023, with respect | ||||||
8 | to food for human consumption that is to be consumed off the | ||||||
9 | premises where it is sold (other than alcoholic beverages, | ||||||
10 | food consisting of or infused with adult use cannabis, soft | ||||||
11 | drinks, and food that has been prepared for immediate | ||||||
12 | consumption), the tax is imposed at the rate of 0%. | ||||||
13 | With respect to prescription and
nonprescription | ||||||
14 | medicines, drugs, medical appliances, products classified as | ||||||
15 | Class III medical devices by the United States Food and Drug | ||||||
16 | Administration that are used for cancer treatment pursuant to | ||||||
17 | a prescription, as well as any accessories and components | ||||||
18 | related to those devices, modifications to a motor
vehicle for | ||||||
19 | the purpose of rendering it usable by a person with a | ||||||
20 | disability, and
insulin, blood sugar testing materials, | ||||||
21 | syringes, and needles used by human diabetics, the tax is | ||||||
22 | imposed at the rate of 1%. For the purposes of this
Section, | ||||||
23 | until September 1, 2009: the term "soft drinks" means any | ||||||
24 | complete, finished, ready-to-use,
non-alcoholic drink, whether | ||||||
25 | carbonated or not, including , but not limited to ,
soda water, | ||||||
26 | cola, fruit juice, vegetable juice, carbonated water, and all |
| |||||||
| |||||||
1 | other
preparations commonly known as soft drinks of whatever | ||||||
2 | kind or description that
are contained in any closed or sealed | ||||||
3 | bottle, can, carton, or container,
regardless of size; but | ||||||
4 | "soft drinks" does not include coffee, tea, non-carbonated
| ||||||
5 | water, infant formula, milk or milk products as defined in the | ||||||
6 | Grade A
Pasteurized Milk and Milk Products Act, or drinks | ||||||
7 | containing 50% or more
natural fruit or vegetable juice.
| ||||||
8 | Notwithstanding any other provisions of this
Act, | ||||||
9 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
10 | beverages that contain natural or artificial sweeteners. "Soft | ||||||
11 | drinks" does do not include beverages that contain milk or | ||||||
12 | milk products, soy, rice or similar milk substitutes, or | ||||||
13 | greater than 50% of vegetable or fruit juice by volume. | ||||||
14 | Until August 1, 2009, and notwithstanding any other | ||||||
15 | provisions of this
Act, "food for human consumption that is to | ||||||
16 | be consumed off the premises where
it is sold" includes all | ||||||
17 | food sold through a vending machine, except soft
drinks and | ||||||
18 | food products that are dispensed hot from a vending machine,
| ||||||
19 | regardless of the location of the vending machine. Beginning | ||||||
20 | August 1, 2009, and notwithstanding any other provisions of | ||||||
21 | this Act, "food for human consumption that is to be consumed | ||||||
22 | off the premises where it is sold" includes all food sold | ||||||
23 | through a vending machine, except soft drinks, candy, and food | ||||||
24 | products that are dispensed hot from a vending machine, | ||||||
25 | regardless of the location of the vending machine.
| ||||||
26 | Notwithstanding any other provisions of this
Act, |
| |||||||
| |||||||
1 | beginning September 1, 2009, "food for human consumption that | ||||||
2 | is to be consumed off the premises where
it is sold" does not | ||||||
3 | include candy. For purposes of this Section, "candy" means a | ||||||
4 | preparation of sugar, honey, or other natural or artificial | ||||||
5 | sweeteners in combination with chocolate, fruits, nuts or | ||||||
6 | other ingredients or flavorings in the form of bars, drops, or | ||||||
7 | pieces. "Candy" does not include any preparation that contains | ||||||
8 | flour or requires refrigeration. | ||||||
9 | Notwithstanding any other provisions of this
Act, | ||||||
10 | beginning September 1, 2009, "nonprescription medicines and | ||||||
11 | drugs" does not include grooming and hygiene products. For | ||||||
12 | purposes of this Section, "grooming and hygiene products" | ||||||
13 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
14 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | ||||||
15 | lotions and screens, unless those products are available by | ||||||
16 | prescription only, regardless of whether the products meet the | ||||||
17 | definition of "over-the-counter-drugs". For the purposes of | ||||||
18 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
19 | use that contains a label that identifies the product as a drug | ||||||
20 | as required by 21 CFR C.F.R. § 201.66. The | ||||||
21 | "over-the-counter-drug" label includes: | ||||||
22 | (A) a A "Drug Facts" panel; or | ||||||
23 | (B) a A statement of the "active ingredient(s)" with a | ||||||
24 | list of those ingredients contained in the compound, | ||||||
25 | substance or preparation. | ||||||
26 | Beginning on January 1, 2014 ( the effective date of Public |
| |||||||
| |||||||
1 | Act 98-122) this amendatory Act of the 98th General Assembly , | ||||||
2 | "prescription and nonprescription medicines and drugs" | ||||||
3 | includes medical cannabis purchased from a registered | ||||||
4 | dispensing organization under the Compassionate Use of Medical | ||||||
5 | Cannabis Program Act. | ||||||
6 | As used in this Section, "adult use cannabis" means | ||||||
7 | cannabis subject to tax under the Cannabis Cultivation | ||||||
8 | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law | ||||||
9 | and does not include cannabis subject to tax under the | ||||||
10 | Compassionate Use of Medical Cannabis Program Act. | ||||||
11 | If the property that is purchased at retail from a | ||||||
12 | retailer is acquired
outside Illinois and used outside | ||||||
13 | Illinois before being brought to Illinois
for use here and is | ||||||
14 | taxable under this Act, the "selling price" on which
the tax is | ||||||
15 | computed shall be reduced by an amount that represents a
| ||||||
16 | reasonable allowance for depreciation for the period of prior | ||||||
17 | out-of-state use.
| ||||||
18 | (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19; | ||||||
19 | 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff. | ||||||
20 | 4-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22; | ||||||
21 | 102-700, Article 65, Section 65-5, eff. 4-19-22; revised | ||||||
22 | 5-27-22.)
| ||||||
23 | (35 ILCS 105/3-40) (from Ch. 120, par. 439.3-40)
| ||||||
24 | Sec. 3-40. Gasohol. As used in this Act, "gasohol" means | ||||||
25 | motor
fuel that is
a blend of
denatured ethanol and gasoline |
| |||||||
| |||||||
1 | that contains no more than 1.25% water by weight.
Prior to | ||||||
2 | January 1, 2024, the The blend must contain 90% gasoline and | ||||||
3 | 10% denatured ethanol. On and after January 1, 2024, the blend | ||||||
4 | must contain 85% gasoline and 15% denatured ethanol. A maximum | ||||||
5 | of one percent error factor in the amount of denatured ethanol | ||||||
6 | used in the blend is allowable to compensate for blending | ||||||
7 | equipment variations. Any person who knowingly
sells or | ||||||
8 | represents as gasohol any fuel that does not qualify as | ||||||
9 | gasohol
under this Act is guilty of a business offense and | ||||||
10 | shall be fined not more
than $100 for each day that the sale or | ||||||
11 | representation takes place after
notification from the | ||||||
12 | Department of Agriculture that the fuel in question
does not | ||||||
13 | qualify as gasohol.
| ||||||
14 | (Source: P.A. 93-724, eff. 7-13-04.)
| ||||||
15 | (35 ILCS 105/3-44)
| ||||||
16 | Sec. 3-44. Majority blended ethanol fuel. Prior to January | ||||||
17 | 1, 2024, "majority "Majority blended ethanol fuel"
means motor | ||||||
18 | fuel that
contains not less than 70% and no more than 90% | ||||||
19 | denatured ethanol and no less
than 10% and no more than 30% | ||||||
20 | gasoline. On and after January 1, 2024, "majority blended | ||||||
21 | ethanol fuel"
means motor fuel that
is capable of being used in | ||||||
22 | the operation of flexible fuel vehicles and contains at least | ||||||
23 | 51% and not more than 83% ethanol, by volume, as specified in | ||||||
24 | ASTM Standard D5798-11, and no less than 17% and no more than | ||||||
25 | 49% gasoline.
|
| |||||||
| |||||||
1 | (Source: P.A. 93-17, eff. 6-11-03.)
| ||||||
2 | (35 ILCS 105/3-44.3 new) | ||||||
3 | Sec. 3-44.3. Mid-range ethanol blend. "Mid-range ethanol | ||||||
4 | blend" means a blend of gasoline and denatured ethanol that | ||||||
5 | contains at least 20% but less than 51% denatured ethanol. | ||||||
6 | Section 10-10. The Service Use Tax Act is amended by | ||||||
7 | changing Section 3-10 as follows:
| ||||||
8 | (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
| ||||||
9 | Sec. 3-10. Rate of tax. Unless otherwise provided in this | ||||||
10 | Section,
the tax imposed by this Act is at the rate of 6.25% of | ||||||
11 | the selling
price of tangible personal property transferred as | ||||||
12 | an incident to the sale
of service, but, for the purpose of | ||||||
13 | computing this tax, in no event shall
the selling price be less | ||||||
14 | than the cost price of the property to the
serviceman.
| ||||||
15 | Beginning on July 1, 2000 and through December 31, 2000, | ||||||
16 | with respect to
motor fuel, as defined in Section 1.1 of the | ||||||
17 | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | ||||||
18 | the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
| ||||||
19 | With respect to gasohol, as defined in the Use Tax Act, the | ||||||
20 | tax imposed
by this Act applies to (i) 70% of the selling price | ||||||
21 | of property transferred
as an incident to the sale of service | ||||||
22 | on or after January 1, 1990,
and before July 1, 2003, (ii) 80% | ||||||
23 | of the selling price of
property transferred as an incident to |
| |||||||
| |||||||
1 | the sale of service on or after July
1, 2003 and on or before | ||||||
2 | July 1, 2017, and (iii)
100% of the selling price of
property | ||||||
3 | transferred as an incident to the sale of service after July 1, | ||||||
4 | 2017 and before January 1, 2024, (iv) 90% of the selling price | ||||||
5 | of
property transferred as an incident to the sale of service | ||||||
6 | on or after January 1, 2024 and on or before December 31, 2028, | ||||||
7 | and (v) 100% of the selling price of
property transferred as an | ||||||
8 | incident to the sale of service after December 31, 2028 | ||||||
9 | thereafter .
If, at any time, however, the tax under this Act on | ||||||
10 | sales of gasohol, as
defined in
the Use Tax Act, is imposed at | ||||||
11 | the rate of 1.25%, then the
tax imposed by this Act applies to | ||||||
12 | 100% of the proceeds of sales of gasohol
made during that time.
| ||||||
13 | With respect to mid-range ethanol blends, as defined in | ||||||
14 | Section 3-44.3 of the Use Tax Act, the tax imposed by this Act | ||||||
15 | applies to (i) 80%
of the selling price of
property | ||||||
16 | transferred as an incident to the sale of service on or after | ||||||
17 | January 1, 2024 and on or before December 31, 2028 and (ii) | ||||||
18 | 100% of the selling price of
property transferred as an | ||||||
19 | incident to the sale of service
after December 31, 2028. If, at | ||||||
20 | any time, however, the tax under this Act on sales of mid-range | ||||||
21 | ethanol blends is
imposed at the
rate of 1.25%, then the tax | ||||||
22 | imposed by this Act applies to 100% of the selling price of | ||||||
23 | mid-range ethanol blends transferred as an incident to the | ||||||
24 | sale of service during that time. | ||||||
25 | With respect to majority blended ethanol fuel, as defined | ||||||
26 | in the Use Tax Act,
the
tax
imposed by this Act does not apply |
| |||||||
| |||||||
1 | to the selling price of property transferred
as an incident to | ||||||
2 | the sale of service on or after July 1, 2003 and on or before
| ||||||
3 | December 31, 2028 December 31, 2023 but applies to 100% of the | ||||||
4 | selling price thereafter.
| ||||||
5 | With respect to biodiesel blends, as defined in the Use | ||||||
6 | Tax Act, with no less
than 1% and no
more than 10% biodiesel, | ||||||
7 | the tax imposed by this Act
applies to (i) 80% of the selling | ||||||
8 | price of property transferred as an incident
to the sale of | ||||||
9 | service on or after July 1, 2003 and on or before December 31, | ||||||
10 | 2018
and (ii) 100% of the proceeds of the selling price
after | ||||||
11 | December 31, 2018 and before January 1, 2024. On and after | ||||||
12 | January 1, 2024 and on or before December 31, 2030, the | ||||||
13 | taxation of biodiesel, renewable diesel, and biodiesel blends | ||||||
14 | shall be as provided in Section 3-5.1 of the Use Tax Act.
If, | ||||||
15 | at any time, however, the tax under this Act on sales of | ||||||
16 | biodiesel blends,
as
defined in the Use Tax Act, with no less | ||||||
17 | than 1% and no more than 10% biodiesel
is imposed at the rate | ||||||
18 | of 1.25%, then the
tax imposed by this Act applies to 100% of | ||||||
19 | the proceeds of sales of biodiesel
blends with no less than 1% | ||||||
20 | and no more than 10% biodiesel
made
during that time.
| ||||||
21 | With respect to biodiesel, as defined in the Use Tax Act, | ||||||
22 | and biodiesel
blends, as defined in the Use Tax Act, with
more | ||||||
23 | than 10% but no more than 99% biodiesel, the tax imposed by | ||||||
24 | this Act
does not apply to the proceeds of the selling price of | ||||||
25 | property transferred
as an incident to the sale of service on | ||||||
26 | or after July 1, 2003 and on or before
December 31, 2023. On |
| |||||||
| |||||||
1 | and after January 1, 2024 and on or before December 31, 2030, | ||||||
2 | the taxation of biodiesel, renewable diesel, and biodiesel | ||||||
3 | blends shall be as provided in Section 3-5.1 of the Use Tax | ||||||
4 | Act.
| ||||||
5 | At the election of any registered serviceman made for each | ||||||
6 | fiscal year,
sales of service in which the aggregate annual | ||||||
7 | cost price of tangible
personal property transferred as an | ||||||
8 | incident to the sales of service is
less than 35%, or 75% in | ||||||
9 | the case of servicemen transferring prescription
drugs or | ||||||
10 | servicemen engaged in graphic arts production, of the | ||||||
11 | aggregate
annual total gross receipts from all sales of | ||||||
12 | service, the tax imposed by
this Act shall be based on the | ||||||
13 | serviceman's cost price of the tangible
personal property | ||||||
14 | transferred as an incident to the sale of those services.
| ||||||
15 | Until July 1, 2022 and beginning again on July 1, 2023, the | ||||||
16 | tax shall be imposed at the rate of 1% on food prepared for
| ||||||
17 | immediate consumption and transferred incident to a sale of | ||||||
18 | service subject
to this Act or the Service Occupation Tax Act | ||||||
19 | by an entity licensed under
the Hospital Licensing Act, the | ||||||
20 | Nursing Home Care Act, the Assisted Living and Shared Housing | ||||||
21 | Act, the ID/DD Community Care Act, the MC/DD Act, the | ||||||
22 | Specialized Mental Health Rehabilitation Act of 2013, or the
| ||||||
23 | Child Care
Act of 1969, or an entity that holds a permit issued | ||||||
24 | pursuant to the Life Care Facilities Act. Until July 1, 2022 | ||||||
25 | and beginning again on July 1, 2023, the tax shall
also be | ||||||
26 | imposed at the rate of 1% on food for human consumption that is |
| |||||||
| |||||||
1 | to be
consumed off the premises where it is sold (other than | ||||||
2 | alcoholic beverages, food consisting of or infused with adult | ||||||
3 | use cannabis,
soft drinks, and food that has been prepared for | ||||||
4 | immediate consumption and is
not otherwise included in this | ||||||
5 | paragraph). | ||||||
6 | Beginning on July 1, 2022 and until July 1, 2023, the tax | ||||||
7 | shall be imposed at the rate of 0% on food prepared for | ||||||
8 | immediate consumption and transferred incident to a sale of | ||||||
9 | service subject to this Act or the Service Occupation Tax Act | ||||||
10 | by an entity licensed under the Hospital Licensing Act, the | ||||||
11 | Nursing Home Care Act, the Assisted Living and Shared Housing | ||||||
12 | Act, the ID/DD Community Care Act, the MC/DD Act, the | ||||||
13 | Specialized Mental Health Rehabilitation Act of 2013, or the | ||||||
14 | Child Care Act of 1969, or an entity that holds a permit issued | ||||||
15 | pursuant to the Life Care Facilities Act. Beginning on July 1, | ||||||
16 | 2022 and until July 1, 2023, the tax shall also be imposed at | ||||||
17 | the rate of 0% on food for human consumption that is to be | ||||||
18 | consumed off the premises where it is sold (other than | ||||||
19 | alcoholic beverages, food consisting of or infused with adult | ||||||
20 | use cannabis, soft drinks, and food that has been prepared for | ||||||
21 | immediate consumption and is not otherwise included in this | ||||||
22 | paragraph). | ||||||
23 | The tax shall also be imposed at the rate of 1% on | ||||||
24 | prescription and nonprescription
medicines, drugs, medical | ||||||
25 | appliances, products classified as Class III medical devices | ||||||
26 | by the United States Food and Drug Administration that are |
| |||||||
| |||||||
1 | used for cancer treatment pursuant to a prescription, as well | ||||||
2 | as any accessories and components related to those devices, | ||||||
3 | modifications to a motor vehicle for the
purpose of rendering | ||||||
4 | it usable by a person with a disability, and insulin, blood | ||||||
5 | sugar testing
materials,
syringes, and needles used by human | ||||||
6 | diabetics. For the purposes of this Section, until September | ||||||
7 | 1, 2009: the term "soft drinks" means any
complete, finished, | ||||||
8 | ready-to-use, non-alcoholic drink, whether carbonated or
not, | ||||||
9 | including , but not limited to , soda water, cola, fruit juice, | ||||||
10 | vegetable
juice, carbonated water, and all other preparations | ||||||
11 | commonly known as soft
drinks of whatever kind or description | ||||||
12 | that are contained in any closed or
sealed bottle, can, | ||||||
13 | carton, or container, regardless of size; but "soft drinks"
| ||||||
14 | does not include coffee, tea, non-carbonated water, infant | ||||||
15 | formula, milk or
milk products as defined in the Grade A | ||||||
16 | Pasteurized Milk and Milk Products Act,
or drinks containing | ||||||
17 | 50% or more natural fruit or vegetable juice.
| ||||||
18 | Notwithstanding any other provisions of this
Act, | ||||||
19 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
20 | beverages that contain natural or artificial sweeteners. "Soft | ||||||
21 | drinks" does do not include beverages that contain milk or | ||||||
22 | milk products, soy, rice or similar milk substitutes, or | ||||||
23 | greater than 50% of vegetable or fruit juice by volume. | ||||||
24 | Until August 1, 2009, and notwithstanding any other | ||||||
25 | provisions of this Act, "food for human
consumption that is to | ||||||
26 | be consumed off the premises where it is sold" includes
all |
| |||||||
| |||||||
1 | food sold through a vending machine, except soft drinks and | ||||||
2 | food products
that are dispensed hot from a vending machine, | ||||||
3 | regardless of the location of
the vending machine. Beginning | ||||||
4 | August 1, 2009, and notwithstanding any other provisions of | ||||||
5 | this Act, "food for human consumption that is to be consumed | ||||||
6 | off the premises where it is sold" includes all food sold | ||||||
7 | through a vending machine, except soft drinks, candy, and food | ||||||
8 | products that are dispensed hot from a vending machine, | ||||||
9 | regardless of the location of the vending machine.
| ||||||
10 | Notwithstanding any other provisions of this
Act, | ||||||
11 | beginning September 1, 2009, "food for human consumption that | ||||||
12 | is to be consumed off the premises where
it is sold" does not | ||||||
13 | include candy. For purposes of this Section, "candy" means a | ||||||
14 | preparation of sugar, honey, or other natural or artificial | ||||||
15 | sweeteners in combination with chocolate, fruits, nuts or | ||||||
16 | other ingredients or flavorings in the form of bars, drops, or | ||||||
17 | pieces. "Candy" does not include any preparation that contains | ||||||
18 | flour or requires refrigeration. | ||||||
19 | Notwithstanding any other provisions of this
Act, | ||||||
20 | beginning September 1, 2009, "nonprescription medicines and | ||||||
21 | drugs" does not include grooming and hygiene products. For | ||||||
22 | purposes of this Section, "grooming and hygiene products" | ||||||
23 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
24 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | ||||||
25 | lotions and screens, unless those products are available by | ||||||
26 | prescription only, regardless of whether the products meet the |
| |||||||
| |||||||
1 | definition of "over-the-counter-drugs". For the purposes of | ||||||
2 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
3 | use that contains a label that identifies the product as a drug | ||||||
4 | as required by 21 CFR C.F.R. § 201.66. The | ||||||
5 | "over-the-counter-drug" label includes: | ||||||
6 | (A) a A "Drug Facts" panel; or | ||||||
7 | (B) a A statement of the "active ingredient(s)" with a | ||||||
8 | list of those ingredients contained in the compound, | ||||||
9 | substance or preparation. | ||||||
10 | Beginning on January 1, 2014 (the effective date of Public | ||||||
11 | Act 98-122), "prescription and nonprescription medicines and | ||||||
12 | drugs" includes medical cannabis purchased from a registered | ||||||
13 | dispensing organization under the Compassionate Use of Medical | ||||||
14 | Cannabis Program Act. | ||||||
15 | As used in this Section, "adult use cannabis" means | ||||||
16 | cannabis subject to tax under the Cannabis Cultivation | ||||||
17 | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law | ||||||
18 | and does not include cannabis subject to tax under the | ||||||
19 | Compassionate Use of Medical Cannabis Program Act. | ||||||
20 | If the property that is acquired from a serviceman is | ||||||
21 | acquired outside
Illinois and used outside Illinois before | ||||||
22 | being brought to Illinois for use
here and is taxable under | ||||||
23 | this Act, the "selling price" on which the tax
is computed | ||||||
24 | shall be reduced by an amount that represents a reasonable
| ||||||
25 | allowance for depreciation for the period of prior | ||||||
26 | out-of-state use.
|
| |||||||
| |||||||
1 | (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19; | ||||||
2 | 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article | ||||||
3 | 20, Section 20-10, eff. 4-19-22; 102-700, Article 60, Section | ||||||
4 | 60-20, eff. 4-19-22; revised 6-1-22.) | ||||||
5 | Section 10-15. The Service Occupation Tax Act is amended | ||||||
6 | by changing Section 3-10 as follows:
| ||||||
7 | (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
| ||||||
8 | Sec. 3-10. Rate of tax. Unless otherwise provided in this | ||||||
9 | Section,
the tax imposed by this Act is at the rate of 6.25% of | ||||||
10 | the "selling price",
as defined in Section 2 of the Service Use | ||||||
11 | Tax Act, of the tangible
personal property. For the purpose of | ||||||
12 | computing this tax, in no event
shall the "selling price" be | ||||||
13 | less than the cost price to the serviceman of
the tangible | ||||||
14 | personal property transferred. The selling price of each item
| ||||||
15 | of tangible personal property transferred as an incident of a | ||||||
16 | sale of
service may be shown as a distinct and separate item on | ||||||
17 | the serviceman's
billing to the service customer. If the | ||||||
18 | selling price is not so shown, the
selling price of the | ||||||
19 | tangible personal property is deemed to be 50% of the
| ||||||
20 | serviceman's entire billing to the service customer. When, | ||||||
21 | however, a
serviceman contracts to design, develop, and | ||||||
22 | produce special order machinery or
equipment, the tax imposed | ||||||
23 | by this Act shall be based on the serviceman's
cost price of | ||||||
24 | the tangible personal property transferred incident to the
|
| |||||||
| |||||||
1 | completion of the contract.
| ||||||
2 | Beginning on July 1, 2000 and through December 31, 2000, | ||||||
3 | with respect to
motor fuel, as defined in Section 1.1 of the | ||||||
4 | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | ||||||
5 | the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
| ||||||
6 | With respect to gasohol, as defined in the Use Tax Act, the | ||||||
7 | tax imposed
by this Act shall apply to (i) 70% of the cost | ||||||
8 | price of property
transferred as
an incident to the sale of | ||||||
9 | service on or after January 1, 1990, and before
July 1, 2003, | ||||||
10 | (ii) 80% of the selling price of property transferred as an
| ||||||
11 | incident to the sale of service on or after July
1, 2003 and on | ||||||
12 | or before July 1, 2017, and (iii) 100%
of
the selling price of
| ||||||
13 | property transferred as an incident to the sale of service | ||||||
14 | after July 1, 2017 and prior to January 1, 2024, (iv) 90% of | ||||||
15 | the selling price of
property transferred as an incident to | ||||||
16 | the sale of service on or after January 1, 2024 and on or | ||||||
17 | before December 31, 2028, and (v) 100% of the selling price of
| ||||||
18 | property transferred as an incident to the sale of service | ||||||
19 | after December 31, 2028 cost price
thereafter .
If, at any | ||||||
20 | time, however, the tax under this Act on sales of gasohol, as
| ||||||
21 | defined in
the Use Tax Act, is imposed at the rate of 1.25%, | ||||||
22 | then the
tax imposed by this Act applies to 100% of the | ||||||
23 | proceeds of sales of gasohol
made during that time.
| ||||||
24 | With respect to mid-range ethanol blends, as defined in | ||||||
25 | Section 3-44.3 of the Use Tax Act, the tax imposed by this Act | ||||||
26 | applies to (i) 80%
of the selling price of property |
| |||||||
| |||||||
1 | transferred
as an incident to the sale of service on or after | ||||||
2 | January 1, 2024 and on or before December 31, 2028 and (ii) | ||||||
3 | 100% of the selling price of property transferred as an
| ||||||
4 | incident to the sale of service
after December 31, 2028. If, at | ||||||
5 | any time, however, the tax under this Act on sales of mid-range | ||||||
6 | ethanol blends is
imposed at the
rate of 1.25%, then the tax | ||||||
7 | imposed by this Act applies to 100% of the selling price of | ||||||
8 | mid-range ethanol blends transferred as an
incident to the | ||||||
9 | sale of service during that time. | ||||||
10 | With respect to majority blended ethanol fuel, as defined | ||||||
11 | in the Use Tax Act,
the
tax
imposed by this Act does not apply | ||||||
12 | to the selling price of property transferred
as an incident to | ||||||
13 | the sale of service on or after July 1, 2003 and on or before
| ||||||
14 | December 31, 2028 December 31, 2023 but applies to 100% of the | ||||||
15 | selling price thereafter.
| ||||||
16 | With respect to biodiesel blends, as defined in the Use | ||||||
17 | Tax Act, with no less
than 1% and no
more than 10% biodiesel, | ||||||
18 | the tax imposed by this Act
applies to (i) 80% of the selling | ||||||
19 | price of property transferred as an incident
to the sale of | ||||||
20 | service on or after July 1, 2003 and on or before December 31, | ||||||
21 | 2018
and (ii) 100% of the proceeds of the selling price
after | ||||||
22 | December 31, 2018 and before January 1, 2024. On and after | ||||||
23 | January 1, 2024 and on or before December 31, 2030, the | ||||||
24 | taxation of biodiesel, renewable diesel, and biodiesel blends | ||||||
25 | shall be as provided in Section 3-5.1 of the Use Tax Act.
If, | ||||||
26 | at any time, however, the tax under this Act on sales of |
| |||||||
| |||||||
1 | biodiesel blends,
as
defined in the Use Tax Act, with no less | ||||||
2 | than 1% and no more than 10% biodiesel
is imposed at the rate | ||||||
3 | of 1.25%, then the
tax imposed by this Act applies to 100% of | ||||||
4 | the proceeds of sales of biodiesel
blends with no less than 1% | ||||||
5 | and no more than 10% biodiesel
made
during that time.
| ||||||
6 | With respect to biodiesel, as defined in the Use Tax Act, | ||||||
7 | and biodiesel
blends, as defined in the Use Tax Act, with
more | ||||||
8 | than 10% but no more than 99% biodiesel material, the tax | ||||||
9 | imposed by this
Act
does not apply to the proceeds of the | ||||||
10 | selling price of property transferred
as an incident to the | ||||||
11 | sale of service on or after July 1, 2003 and on or before
| ||||||
12 | December 31, 2023. On and after January 1, 2024 and on or | ||||||
13 | before December 31, 2030, the taxation of biodiesel, renewable | ||||||
14 | diesel, and biodiesel blends shall be as provided in Section | ||||||
15 | 3-5.1 of the Use Tax Act.
| ||||||
16 | At the election of any registered serviceman made for each | ||||||
17 | fiscal year,
sales of service in which the aggregate annual | ||||||
18 | cost price of tangible
personal property transferred as an | ||||||
19 | incident to the sales of service is
less than 35%, or 75% in | ||||||
20 | the case of servicemen transferring prescription
drugs or | ||||||
21 | servicemen engaged in graphic arts production, of the | ||||||
22 | aggregate
annual total gross receipts from all sales of | ||||||
23 | service, the tax imposed by
this Act shall be based on the | ||||||
24 | serviceman's cost price of the tangible
personal property | ||||||
25 | transferred incident to the sale of those services.
| ||||||
26 | Until July 1, 2022 and beginning again on July 1, 2023, the |
| |||||||
| |||||||
1 | tax shall be imposed at the rate of 1% on food prepared for
| ||||||
2 | immediate consumption and transferred incident to a sale of | ||||||
3 | service subject
to this Act or the Service Use Tax Act by an | ||||||
4 | entity licensed under
the Hospital Licensing Act, the Nursing | ||||||
5 | Home Care Act, the Assisted Living and Shared Housing Act, the | ||||||
6 | ID/DD Community Care Act, the MC/DD Act, the Specialized | ||||||
7 | Mental Health Rehabilitation Act of 2013, or the
Child Care | ||||||
8 | Act of 1969, or an entity that holds a permit issued pursuant | ||||||
9 | to the Life Care Facilities Act. Until July 1, 2022 and | ||||||
10 | beginning again on July 1, 2023, the tax shall
also be imposed | ||||||
11 | at the rate of 1% on food for human consumption that is
to be | ||||||
12 | consumed off the
premises where it is sold (other than | ||||||
13 | alcoholic beverages, food consisting of or infused with adult | ||||||
14 | use cannabis, soft drinks, and
food that has been prepared for | ||||||
15 | immediate consumption and is not
otherwise included in this | ||||||
16 | paragraph). | ||||||
17 | Beginning on July 1, 2022 and until July 1, 2023, the tax | ||||||
18 | shall be imposed at the rate of 0% on food prepared for | ||||||
19 | immediate consumption and transferred incident to a sale of | ||||||
20 | service subject to this Act or the Service Use Tax Act by an | ||||||
21 | entity licensed under the Hospital Licensing Act, the Nursing | ||||||
22 | Home Care Act, the Assisted Living and Shared Housing Act, the | ||||||
23 | ID/DD Community Care Act, the MC/DD Act, the Specialized | ||||||
24 | Mental Health Rehabilitation Act of 2013, or the Child Care | ||||||
25 | Act of 1969, or an entity that holds a permit issued pursuant | ||||||
26 | to the Life Care Facilities Act. Beginning July 1, 2022 and |
| |||||||
| |||||||
1 | until July 1, 2023, the tax shall also be imposed at the rate | ||||||
2 | of 0% on food for human consumption that is to be consumed off | ||||||
3 | the premises where it is sold (other than alcoholic beverages, | ||||||
4 | food consisting of or infused with adult use cannabis, soft | ||||||
5 | drinks, and food that has been prepared for immediate | ||||||
6 | consumption and is not otherwise included in this paragraph). | ||||||
7 | The tax shall also be imposed at the rate of 1% on | ||||||
8 | prescription and
nonprescription medicines, drugs, medical | ||||||
9 | appliances, products classified as Class III medical devices | ||||||
10 | by the United States Food and Drug Administration that are | ||||||
11 | used for cancer treatment pursuant to a prescription, as well | ||||||
12 | as any accessories and components related to those devices, | ||||||
13 | modifications to a motor
vehicle for the purpose of rendering | ||||||
14 | it usable by a person with a disability, and
insulin, blood | ||||||
15 | sugar testing materials, syringes, and needles used by human | ||||||
16 | diabetics. For the purposes of this Section, until September | ||||||
17 | 1, 2009: the term "soft drinks" means any
complete, finished, | ||||||
18 | ready-to-use, non-alcoholic drink, whether carbonated or
not, | ||||||
19 | including , but not limited to , soda water, cola, fruit juice, | ||||||
20 | vegetable
juice, carbonated water, and all other preparations | ||||||
21 | commonly known as soft
drinks of whatever kind or description | ||||||
22 | that are contained in any closed or
sealed can, carton, or | ||||||
23 | container, regardless of size; but "soft drinks" does not
| ||||||
24 | include coffee, tea, non-carbonated water, infant formula, | ||||||
25 | milk or milk
products as defined in the Grade A Pasteurized | ||||||
26 | Milk and Milk Products Act, or
drinks containing 50% or more |
| |||||||
| |||||||
1 | natural fruit or vegetable juice.
| ||||||
2 | Notwithstanding any other provisions of this
Act, | ||||||
3 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
4 | beverages that contain natural or artificial sweeteners. "Soft | ||||||
5 | drinks" does do not include beverages that contain milk or | ||||||
6 | milk products, soy, rice or similar milk substitutes, or | ||||||
7 | greater than 50% of vegetable or fruit juice by volume. | ||||||
8 | Until August 1, 2009, and notwithstanding any other | ||||||
9 | provisions of this Act, "food for human consumption
that is to | ||||||
10 | be consumed off the premises where it is sold" includes all | ||||||
11 | food
sold through a vending machine, except soft drinks and | ||||||
12 | food products that are
dispensed hot from a vending machine, | ||||||
13 | regardless of the location of the vending
machine. Beginning | ||||||
14 | August 1, 2009, and notwithstanding any other provisions of | ||||||
15 | this Act, "food for human consumption that is to be consumed | ||||||
16 | off the premises where it is sold" includes all food sold | ||||||
17 | through a vending machine, except soft drinks, candy, and food | ||||||
18 | products that are dispensed hot from a vending machine, | ||||||
19 | regardless of the location of the vending machine.
| ||||||
20 | Notwithstanding any other provisions of this
Act, | ||||||
21 | beginning September 1, 2009, "food for human consumption that | ||||||
22 | is to be consumed off the premises where
it is sold" does not | ||||||
23 | include candy. For purposes of this Section, "candy" means a | ||||||
24 | preparation of sugar, honey, or other natural or artificial | ||||||
25 | sweeteners in combination with chocolate, fruits, nuts or | ||||||
26 | other ingredients or flavorings in the form of bars, drops, or |
| |||||||
| |||||||
1 | pieces. "Candy" does not include any preparation that contains | ||||||
2 | flour or requires refrigeration. | ||||||
3 | Notwithstanding any other provisions of this
Act, | ||||||
4 | beginning September 1, 2009, "nonprescription medicines and | ||||||
5 | drugs" does not include grooming and hygiene products. For | ||||||
6 | purposes of this Section, "grooming and hygiene products" | ||||||
7 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
8 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | ||||||
9 | lotions and screens, unless those products are available by | ||||||
10 | prescription only, regardless of whether the products meet the | ||||||
11 | definition of "over-the-counter-drugs". For the purposes of | ||||||
12 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
13 | use that contains a label that identifies the product as a drug | ||||||
14 | as required by 21 CFR C.F.R. § 201.66. The | ||||||
15 | "over-the-counter-drug" label includes: | ||||||
16 | (A) a A "Drug Facts" panel; or | ||||||
17 | (B) a A statement of the "active ingredient(s)" with a | ||||||
18 | list of those ingredients contained in the compound, | ||||||
19 | substance or preparation. | ||||||
20 | Beginning on January 1, 2014 (the effective date of Public | ||||||
21 | Act 98-122), "prescription and nonprescription medicines and | ||||||
22 | drugs" includes medical cannabis purchased from a registered | ||||||
23 | dispensing organization under the Compassionate Use of Medical | ||||||
24 | Cannabis Program Act. | ||||||
25 | As used in this Section, "adult use cannabis" means | ||||||
26 | cannabis subject to tax under the Cannabis Cultivation |
| |||||||
| |||||||
1 | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law | ||||||
2 | and does not include cannabis subject to tax under the | ||||||
3 | Compassionate Use of Medical Cannabis Program Act. | ||||||
4 | (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19; | ||||||
5 | 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article | ||||||
6 | 20, Section 20-15, eff. 4-19-22; 102-700, Article 60, Section | ||||||
7 | 60-25, eff. 4-19-22; revised 6-1-22.) | ||||||
8 | Section 10-20. The Retailers' Occupation Tax Act is | ||||||
9 | amended by changing Sections 2-10 and 2d as follows:
| ||||||
10 | (35 ILCS 120/2-10)
| ||||||
11 | Sec. 2-10. Rate of tax. Unless otherwise provided in this | ||||||
12 | Section,
the tax imposed by this Act is at the rate of 6.25% of | ||||||
13 | gross receipts
from sales of tangible personal property made | ||||||
14 | in the course of business.
| ||||||
15 | Beginning on July 1, 2000 and through December 31, 2000, | ||||||
16 | with respect to
motor fuel, as defined in Section 1.1 of the | ||||||
17 | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | ||||||
18 | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| ||||||
19 | Beginning on August 6, 2010 through August 15, 2010, and | ||||||
20 | beginning again on August 5, 2022 through August 14, 2022, | ||||||
21 | with respect to sales tax holiday items as defined in Section | ||||||
22 | 2-8 of this Act, the
tax is imposed at the rate of 1.25%. | ||||||
23 | Within 14 days after July 1, 2000 ( the effective date of | ||||||
24 | Public Act 91-872) this amendatory Act of the 91st
General |
| |||||||
| |||||||
1 | Assembly , each retailer of motor fuel and gasohol shall cause | ||||||
2 | the
following notice to be posted in a prominently visible | ||||||
3 | place on each retail
dispensing device that is used to | ||||||
4 | dispense motor
fuel or gasohol in the State of Illinois: "As of | ||||||
5 | July 1, 2000, the State of
Illinois has eliminated the State's | ||||||
6 | share of sales tax on motor fuel and
gasohol through December | ||||||
7 | 31, 2000. The price on this pump should reflect the
| ||||||
8 | elimination of the tax." The notice shall be printed in bold | ||||||
9 | print on a sign
that is no smaller than 4 inches by 8 inches. | ||||||
10 | The sign shall be clearly
visible to customers. Any retailer | ||||||
11 | who fails to post or maintain a required
sign through December | ||||||
12 | 31, 2000 is guilty of a petty offense for which the fine
shall | ||||||
13 | be $500 per day per each retail premises where a violation | ||||||
14 | occurs.
| ||||||
15 | With respect to gasohol, as defined in the Use Tax Act, the | ||||||
16 | tax imposed
by this Act applies to (i) 70% of the proceeds of | ||||||
17 | sales made on or after
January 1, 1990, and before July 1, | ||||||
18 | 2003, (ii) 80% of the proceeds of
sales made on or after July | ||||||
19 | 1, 2003 and on or before July 1, 2017, and (iii) 100% of the | ||||||
20 | proceeds of sales
made after July 1, 2017 and prior to January | ||||||
21 | 1, 2024, (iv) 90% of the proceeds of sales made on or after | ||||||
22 | January 1, 2024 and on or before December 31, 2028, and (v) | ||||||
23 | 100% of the proceeds of sales made after December 31, 2028 | ||||||
24 | thereafter .
If, at any time, however, the tax under this Act on | ||||||
25 | sales of gasohol, as
defined in
the Use Tax Act, is imposed at | ||||||
26 | the rate of 1.25%, then the
tax imposed by this Act applies to |
| |||||||
| |||||||
1 | 100% of the proceeds of sales of gasohol
made during that time.
| ||||||
2 | With respect to mid-range ethanol blends, as defined in | ||||||
3 | Section 3-44.3 of the Use Tax Act, the tax imposed by this Act | ||||||
4 | applies to (i) 80%
of the proceeds of sales made on or after | ||||||
5 | January 1, 2024 and on or before December 31, 2028 and (ii) | ||||||
6 | 100% of the proceeds of sales made
after December 31, 2028. If, | ||||||
7 | at any time, however, the tax under this Act on sales of | ||||||
8 | mid-range ethanol blends is
imposed at the
rate of 1.25%, then | ||||||
9 | the tax imposed by this Act applies to 100% of the proceeds
of | ||||||
10 | sales of mid-range ethanol blends made during that time. | ||||||
11 | With respect to majority blended ethanol fuel, as defined | ||||||
12 | in the Use Tax Act,
the
tax
imposed by this Act does not apply | ||||||
13 | to the proceeds of sales made on or after
July 1, 2003 and on | ||||||
14 | or before December 31, 2028 December 31, 2023 but applies to | ||||||
15 | 100% of the
proceeds of sales made thereafter.
| ||||||
16 | With respect to biodiesel blends, as defined in the Use | ||||||
17 | Tax Act, with no less
than 1% and no
more than 10% biodiesel, | ||||||
18 | the tax imposed by this Act
applies to (i) 80% of the proceeds | ||||||
19 | of sales made on or after July 1, 2003
and on or before | ||||||
20 | December 31, 2018 and (ii) 100% of the
proceeds of sales made | ||||||
21 | after December 31, 2018 and before January 1, 2024. On and | ||||||
22 | after January 1, 2024 and on or before December 31, 2030, the | ||||||
23 | taxation of biodiesel, renewable diesel, and biodiesel blends | ||||||
24 | shall be as provided in Section 3-5.1 of the Use Tax Act.
If, | ||||||
25 | at any time, however, the tax under this Act on sales of | ||||||
26 | biodiesel blends,
as
defined in the Use Tax Act, with no less |
| |||||||
| |||||||
1 | than 1% and no more than 10% biodiesel
is imposed at the rate | ||||||
2 | of 1.25%, then the
tax imposed by this Act applies to 100% of | ||||||
3 | the proceeds of sales of biodiesel
blends with no less than 1% | ||||||
4 | and no more than 10% biodiesel
made
during that time.
| ||||||
5 | With respect to biodiesel, as defined in the Use Tax Act, | ||||||
6 | and biodiesel
blends, as defined in the Use Tax Act, with
more | ||||||
7 | than 10% but no more than 99% biodiesel, the tax imposed by | ||||||
8 | this Act
does not apply to the proceeds of sales made on or | ||||||
9 | after July 1, 2003
and on or before December 31, 2023. On and | ||||||
10 | after January 1, 2024 and on or before December 31, 2030, the | ||||||
11 | taxation of biodiesel, renewable diesel, and biodiesel blends | ||||||
12 | shall be as provided in Section 3-5.1 of the Use Tax Act.
| ||||||
13 | Until July 1, 2022 and beginning again on July 1, 2023, | ||||||
14 | with respect to food for human consumption that is to be | ||||||
15 | consumed off the
premises where it is sold (other than | ||||||
16 | alcoholic beverages, food consisting of or infused with adult | ||||||
17 | use cannabis, soft drinks, and
food that has been prepared for | ||||||
18 | immediate consumption), the tax is imposed at the rate of 1%. | ||||||
19 | Beginning July 1, 2022 and until July 1, 2023, with respect to | ||||||
20 | food for human consumption that is to be consumed off the | ||||||
21 | premises where it is sold (other than alcoholic beverages, | ||||||
22 | food consisting of or infused with adult use cannabis, soft | ||||||
23 | drinks, and food that has been prepared for immediate | ||||||
24 | consumption), the tax is imposed at the rate of 0%. | ||||||
25 | With respect to prescription and
nonprescription | ||||||
26 | medicines, drugs, medical appliances, products classified as |
| |||||||
| |||||||
1 | Class III medical devices by the United States Food and Drug | ||||||
2 | Administration that are used for cancer treatment pursuant to | ||||||
3 | a prescription, as well as any accessories and components | ||||||
4 | related to those devices, modifications to a motor
vehicle for | ||||||
5 | the purpose of rendering it usable by a person with a | ||||||
6 | disability, and
insulin, blood sugar testing materials, | ||||||
7 | syringes, and needles used by human diabetics, the tax is | ||||||
8 | imposed at the rate of 1%. For the purposes of this
Section, | ||||||
9 | until September 1, 2009: the term "soft drinks" means any | ||||||
10 | complete, finished, ready-to-use,
non-alcoholic drink, whether | ||||||
11 | carbonated or not, including , but not limited to ,
soda water, | ||||||
12 | cola, fruit juice, vegetable juice, carbonated water, and all | ||||||
13 | other
preparations commonly known as soft drinks of whatever | ||||||
14 | kind or description that
are contained in any closed or sealed | ||||||
15 | bottle, can, carton, or container,
regardless of size; but | ||||||
16 | "soft drinks" does not include coffee, tea, non-carbonated
| ||||||
17 | water, infant formula, milk or milk products as defined in the | ||||||
18 | Grade A
Pasteurized Milk and Milk Products Act, or drinks | ||||||
19 | containing 50% or more
natural fruit or vegetable juice.
| ||||||
20 | Notwithstanding any other provisions of this
Act, | ||||||
21 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
22 | beverages that contain natural or artificial sweeteners. "Soft | ||||||
23 | drinks" does do not include beverages that contain milk or | ||||||
24 | milk products, soy, rice or similar milk substitutes, or | ||||||
25 | greater than 50% of vegetable or fruit juice by volume. | ||||||
26 | Until August 1, 2009, and notwithstanding any other |
| |||||||
| |||||||
1 | provisions of this
Act, "food for human consumption that is to | ||||||
2 | be consumed off the premises where
it is sold" includes all | ||||||
3 | food sold through a vending machine, except soft
drinks and | ||||||
4 | food products that are dispensed hot from a vending machine,
| ||||||
5 | regardless of the location of the vending machine. Beginning | ||||||
6 | August 1, 2009, and notwithstanding any other provisions of | ||||||
7 | this Act, "food for human consumption that is to be consumed | ||||||
8 | off the premises where it is sold" includes all food sold | ||||||
9 | through a vending machine, except soft drinks, candy, and food | ||||||
10 | products that are dispensed hot from a vending machine, | ||||||
11 | regardless of the location of the vending machine.
| ||||||
12 | Notwithstanding any other provisions of this
Act, | ||||||
13 | beginning September 1, 2009, "food for human consumption that | ||||||
14 | is to be consumed off the premises where
it is sold" does not | ||||||
15 | include candy. For purposes of this Section, "candy" means a | ||||||
16 | preparation of sugar, honey, or other natural or artificial | ||||||
17 | sweeteners in combination with chocolate, fruits, nuts or | ||||||
18 | other ingredients or flavorings in the form of bars, drops, or | ||||||
19 | pieces. "Candy" does not include any preparation that contains | ||||||
20 | flour or requires refrigeration. | ||||||
21 | Notwithstanding any other provisions of this
Act, | ||||||
22 | beginning September 1, 2009, "nonprescription medicines and | ||||||
23 | drugs" does not include grooming and hygiene products. For | ||||||
24 | purposes of this Section, "grooming and hygiene products" | ||||||
25 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
26 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan |
| |||||||
| |||||||
1 | lotions and screens, unless those products are available by | ||||||
2 | prescription only, regardless of whether the products meet the | ||||||
3 | definition of "over-the-counter-drugs". For the purposes of | ||||||
4 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
5 | use that contains a label that identifies the product as a drug | ||||||
6 | as required by 21 CFR C.F.R. § 201.66. The | ||||||
7 | "over-the-counter-drug" label includes: | ||||||
8 | (A) a A "Drug Facts" panel; or | ||||||
9 | (B) a A statement of the "active ingredient(s)" with a | ||||||
10 | list of those ingredients contained in the compound, | ||||||
11 | substance or preparation.
| ||||||
12 | Beginning on January 1, 2014 ( the effective date of Public | ||||||
13 | Act 98-122) this amendatory Act of the 98th General Assembly , | ||||||
14 | "prescription and nonprescription medicines and drugs" | ||||||
15 | includes medical cannabis purchased from a registered | ||||||
16 | dispensing organization under the Compassionate Use of Medical | ||||||
17 | Cannabis Program Act. | ||||||
18 | As used in this Section, "adult use cannabis" means | ||||||
19 | cannabis subject to tax under the Cannabis Cultivation | ||||||
20 | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law | ||||||
21 | and does not include cannabis subject to tax under the | ||||||
22 | Compassionate Use of Medical Cannabis Program Act. | ||||||
23 | (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19; | ||||||
24 | 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff. | ||||||
25 | 4-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22; | ||||||
26 | 102-700, Article 65, Section 65-10, eff. 4-19-22; revised |
| |||||||
| |||||||
1 | 6-1-22.)
| ||||||
2 | (35 ILCS 120/2d) (from Ch. 120, par. 441d) | ||||||
3 | Sec. 2d. Tax prepayment by motor fuel retailer. | ||||||
4 | (a) Any person engaged in the business of selling motor | ||||||
5 | fuel at
retail, as defined in the Motor Fuel Tax Law, and who | ||||||
6 | is not a
licensed distributor or supplier, as defined in the | ||||||
7 | Motor Fuel Tax Law,
shall prepay to his or her distributor, | ||||||
8 | supplier, or other reseller of
motor fuel a portion of the tax | ||||||
9 | imposed by this Act if the distributor,
supplier, or other | ||||||
10 | reseller of motor fuel is registered under Section 2a or
| ||||||
11 | Section 2c of this Act. The prepayment requirement provided | ||||||
12 | for in this
Section does not apply to liquid propane gas. | ||||||
13 | (b) Beginning on July 1, 2000 and through December 31, | ||||||
14 | 2000, the Retailers'
Occupation Tax paid to the distributor, | ||||||
15 | supplier,
or other reseller shall be an amount equal to $0.01 | ||||||
16 | per
gallon of the motor fuel, except gasohol as defined in | ||||||
17 | Section 2-10 of
this Act which shall be an amount equal to | ||||||
18 | $0.01 per gallon,
purchased from the distributor, supplier, or | ||||||
19 | other reseller. | ||||||
20 | (c) Before July 1, 2000 and then beginning on January 1, | ||||||
21 | 2001 and through June
30, 2003,
the Retailers' Occupation Tax | ||||||
22 | paid
to the distributor, supplier, or other reseller shall be | ||||||
23 | an amount equal to
$0.04 per gallon
of the motor fuel, except | ||||||
24 | gasohol as defined in Section 2-10 of this Act which
shall be | ||||||
25 | an
amount equal to $0.03 per gallon, purchased from the |
| |||||||
| |||||||
1 | distributor, supplier, or
other
reseller. | ||||||
2 | (d) Beginning July 1, 2003 and through December 31, 2010, | ||||||
3 | the Retailers' Occupation Tax paid
to
the
distributor, | ||||||
4 | supplier, or other reseller shall be an amount equal to $0.06 | ||||||
5 | per
gallon of the
motor fuel, except gasohol as defined in | ||||||
6 | Section 2-10 of this Act which shall
be an
amount equal to | ||||||
7 | $0.05 per gallon, purchased from the distributor, supplier, or
| ||||||
8 | other
reseller. | ||||||
9 | (e) Beginning on January 1, 2011 and thereafter, the | ||||||
10 | Retailers' Occupation Tax paid to the distributor, supplier, | ||||||
11 | or other reseller shall be at the rate established by the | ||||||
12 | Department under this subsection. The rate shall be | ||||||
13 | established by the Department on January 1 and July 1 of each | ||||||
14 | year using the average selling price, as defined in Section 1 | ||||||
15 | of this Act, per gallon of motor fuel sold in the State during | ||||||
16 | the previous 6 months and multiplying that amount by 6.25% to | ||||||
17 | determine the cents per gallon rate. Beginning on January 1, | ||||||
18 | 2024 and through December 31, 2028, In the case of biodiesel | ||||||
19 | blends, as defined in Section 3-42 of the Use Tax Act, with no | ||||||
20 | less than 1% and no more than 10% biodiesel, and in the case of | ||||||
21 | gasohol, as defined in Section 3-40 of the Use Tax Act, the | ||||||
22 | rate shall be 90% 80% of the rate established by the Department | ||||||
23 | under this subsection for motor fuel. Beginning on January 1, | ||||||
24 | 2024 and through December 31, 2028, in the case of mid-range | ||||||
25 | ethanol blends, as defined in Section 3-44.3 of the Use Tax | ||||||
26 | Act, the rate shall be 80% of the rate established by the |
| |||||||
| |||||||
1 | Department under this subsection for motor fuel. The | ||||||
2 | Department shall provide persons subject to this Section | ||||||
3 | notice of the rate established under this subsection at least | ||||||
4 | 20 days prior to each January 1 and July 1. Publication of the | ||||||
5 | established rate on the Department's internet website shall | ||||||
6 | constitute sufficient notice under this Section. The | ||||||
7 | Department may use data derived from independent surveys | ||||||
8 | conducted or accumulated by third parties to determine the | ||||||
9 | average selling price per gallon of motor fuel sold in the | ||||||
10 | State. | ||||||
11 | (f) Any person engaged in the business of selling motor | ||||||
12 | fuel at retail shall
be entitled to a credit against tax due | ||||||
13 | under this Act in an amount equal
to the tax paid to the | ||||||
14 | distributor, supplier, or other reseller. | ||||||
15 | (g) Every distributor, supplier, or other reseller | ||||||
16 | registered as provided in
Section 2a or Section 2c of this Act | ||||||
17 | shall remit the prepaid tax on all
motor fuel that is due from | ||||||
18 | any person engaged in the business of selling
at retail motor | ||||||
19 | fuel with the returns filed under Section 2f or Section 3
of | ||||||
20 | this Act, but the vendors discount provided in Section 3 shall | ||||||
21 | not apply
to the amount of prepaid tax that is remitted. Any | ||||||
22 | distributor or supplier
who fails to properly collect and | ||||||
23 | remit the tax shall be liable for the
tax. For purposes of this | ||||||
24 | Section, the prepaid tax is due on invoiced
gallons sold | ||||||
25 | during a month by the 20th day of the following month. | ||||||
26 | (Source: P.A. 96-1384, eff. 7-29-10.) |
| |||||||
| |||||||
1 | ARTICLE 15. ELECTRIC GENERATION EQUIPMENT | ||||||
2 | Section 15-5. The Use Tax Act is amended by changing | ||||||
3 | Section 3-5 as follows:
| ||||||
4 | (35 ILCS 105/3-5)
| ||||||
5 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
6 | personal property is exempt from the tax imposed by this Act:
| ||||||
7 | (1) Personal property purchased from a corporation, | ||||||
8 | society, association,
foundation, institution, or | ||||||
9 | organization, other than a limited liability
company, that is | ||||||
10 | organized and operated as a not-for-profit service enterprise
| ||||||
11 | for the benefit of persons 65 years of age or older if the | ||||||
12 | personal property was not purchased by the enterprise for the | ||||||
13 | purpose of resale by the
enterprise.
| ||||||
14 | (2) Personal property purchased by a not-for-profit | ||||||
15 | Illinois county
fair association for use in conducting, | ||||||
16 | operating, or promoting the
county fair.
| ||||||
17 | (3) Personal property purchased by a not-for-profit
arts | ||||||
18 | or cultural organization that establishes, by proof required | ||||||
19 | by the
Department by
rule, that it has received an exemption | ||||||
20 | under Section 501(c)(3) of the Internal
Revenue Code and that | ||||||
21 | is organized and operated primarily for the
presentation
or | ||||||
22 | support of arts or cultural programming, activities, or | ||||||
23 | services. These
organizations include, but are not limited to, |
| |||||||
| |||||||
1 | music and dramatic arts
organizations such as symphony | ||||||
2 | orchestras and theatrical groups, arts and
cultural service | ||||||
3 | organizations, local arts councils, visual arts organizations,
| ||||||
4 | and media arts organizations.
On and after July 1, 2001 (the | ||||||
5 | effective date of Public Act 92-35), however, an entity | ||||||
6 | otherwise eligible for this exemption shall not
make tax-free | ||||||
7 | purchases unless it has an active identification number issued | ||||||
8 | by
the Department.
| ||||||
9 | (4) Personal property purchased by a governmental body, by | ||||||
10 | a
corporation, society, association, foundation, or | ||||||
11 | institution organized and
operated exclusively for charitable, | ||||||
12 | religious, or educational purposes, or
by a not-for-profit | ||||||
13 | corporation, society, association, foundation,
institution, or | ||||||
14 | organization that has no compensated officers or employees
and | ||||||
15 | that is organized and operated primarily for the recreation of | ||||||
16 | persons
55 years of age or older. A limited liability company | ||||||
17 | may qualify for the
exemption under this paragraph only if the | ||||||
18 | limited liability company is
organized and operated | ||||||
19 | exclusively for educational purposes. On and after July
1, | ||||||
20 | 1987, however, no entity otherwise eligible for this exemption | ||||||
21 | shall make
tax-free purchases unless it has an active | ||||||
22 | exemption identification number
issued by the Department.
| ||||||
23 | (5) Until July 1, 2003, a passenger car that is a | ||||||
24 | replacement vehicle to
the extent that the
purchase price of | ||||||
25 | the car is subject to the Replacement Vehicle Tax.
| ||||||
26 | (6) Until July 1, 2003 and beginning again on September 1, |
| |||||||
| |||||||
1 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
2 | equipment, including
repair and replacement
parts, both new | ||||||
3 | and used, and including that manufactured on special order,
| ||||||
4 | certified by the purchaser to be used primarily for graphic | ||||||
5 | arts production,
and including machinery and equipment | ||||||
6 | purchased for lease.
Equipment includes chemicals or chemicals | ||||||
7 | acting as catalysts but only if
the
chemicals or chemicals | ||||||
8 | acting as catalysts effect a direct and immediate change
upon | ||||||
9 | a graphic arts product. Beginning on July 1, 2017, graphic | ||||||
10 | arts machinery and equipment is included in the manufacturing | ||||||
11 | and assembling machinery and equipment exemption under | ||||||
12 | paragraph (18).
| ||||||
13 | (7) Farm chemicals.
| ||||||
14 | (8) Legal tender, currency, medallions, or gold or silver | ||||||
15 | coinage issued by
the State of Illinois, the government of the | ||||||
16 | United States of America, or the
government of any foreign | ||||||
17 | country, and bullion.
| ||||||
18 | (9) Personal property purchased from a teacher-sponsored | ||||||
19 | student
organization affiliated with an elementary or | ||||||
20 | secondary school located in
Illinois.
| ||||||
21 | (10) A motor vehicle that is used for automobile renting, | ||||||
22 | as defined in the
Automobile Renting Occupation and Use Tax | ||||||
23 | Act.
| ||||||
24 | (11) Farm machinery and equipment, both new and used,
| ||||||
25 | including that manufactured on special order, certified by the | ||||||
26 | purchaser
to be used primarily for production agriculture or |
| |||||||
| |||||||
1 | State or federal
agricultural programs, including individual | ||||||
2 | replacement parts for
the machinery and equipment, including | ||||||
3 | machinery and equipment
purchased
for lease,
and including | ||||||
4 | implements of husbandry defined in Section 1-130 of
the | ||||||
5 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
6 | chemical and
fertilizer spreaders, and nurse wagons required | ||||||
7 | to be registered
under Section 3-809 of the Illinois Vehicle | ||||||
8 | Code,
but excluding other motor
vehicles required to be
| ||||||
9 | registered under the Illinois Vehicle Code.
Horticultural | ||||||
10 | polyhouses or hoop houses used for propagating, growing, or
| ||||||
11 | overwintering plants shall be considered farm machinery and | ||||||
12 | equipment under
this item (11).
Agricultural chemical tender | ||||||
13 | tanks and dry boxes shall include units sold
separately from a | ||||||
14 | motor vehicle required to be licensed and units sold mounted
| ||||||
15 | on a motor vehicle required to be licensed if the selling price | ||||||
16 | of the tender
is separately 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 not | ||||||
20 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
21 | or spreaders.
Precision farming equipment includes, but is not | ||||||
22 | limited to, soil testing
sensors, computers, monitors, | ||||||
23 | software, global positioning
and mapping systems, and other | ||||||
24 | such equipment.
| ||||||
25 | Farm machinery and equipment also includes computers, | ||||||
26 | sensors, software, and
related equipment used primarily in the
|
| |||||||
| |||||||
1 | computer-assisted operation of production agriculture | ||||||
2 | facilities, equipment,
and
activities such as, but not limited | ||||||
3 | to,
the collection, monitoring, and correlation of
animal and | ||||||
4 | crop data for the purpose of
formulating animal diets and | ||||||
5 | agricultural chemicals. | ||||||
6 | Beginning on January 1, 2024, farm machinery and equipment | ||||||
7 | also includes electrical power generation equipment used | ||||||
8 | primarily for production agriculture. | ||||||
9 | This item (11) is exempt
from the provisions of
Section | ||||||
10 | 3-90.
| ||||||
11 | (12) Until June 30, 2013, fuel and petroleum products sold | ||||||
12 | to or used by an air common
carrier, certified by the carrier | ||||||
13 | to be used for consumption, shipment, or
storage in the | ||||||
14 | conduct of its business as an air common carrier, for a
flight | ||||||
15 | destined for or returning from a location or locations
outside | ||||||
16 | the United States without regard to previous or subsequent | ||||||
17 | domestic
stopovers.
| ||||||
18 | Beginning July 1, 2013, fuel and petroleum products sold | ||||||
19 | to or used by an air carrier, certified by the carrier to be | ||||||
20 | used for consumption, shipment, or storage in the conduct of | ||||||
21 | its business as an air common carrier, for a flight that (i) is | ||||||
22 | engaged in foreign trade or is engaged in trade between the | ||||||
23 | United States and any of its possessions and (ii) transports | ||||||
24 | at least one individual or package for hire from the city of | ||||||
25 | origination to the city of final destination on the same | ||||||
26 | aircraft, without regard to a change in the flight number of |
| |||||||
| |||||||
1 | that aircraft. | ||||||
2 | (13) Proceeds of mandatory service charges separately
| ||||||
3 | stated on customers' bills for the purchase and consumption of | ||||||
4 | food and
beverages purchased at retail from a retailer, to the | ||||||
5 | extent that the proceeds
of the service charge are in fact | ||||||
6 | turned over as tips or as a substitute
for tips to the | ||||||
7 | employees who participate directly in preparing, serving,
| ||||||
8 | hosting or cleaning up the food or beverage function with | ||||||
9 | respect to which
the service charge is imposed.
| ||||||
10 | (14) Until July 1, 2003, oil field exploration, drilling, | ||||||
11 | and production
equipment,
including (i) rigs and parts of | ||||||
12 | rigs, rotary
rigs, cable tool rigs, and workover rigs, (ii) | ||||||
13 | pipe and tubular goods,
including casing and drill strings, | ||||||
14 | (iii) pumps and pump-jack units, (iv)
storage tanks and flow | ||||||
15 | lines, (v) any individual replacement part for oil
field | ||||||
16 | exploration, drilling, and production equipment, and (vi) | ||||||
17 | machinery and
equipment purchased
for lease; but excluding | ||||||
18 | motor vehicles required to be registered under the
Illinois | ||||||
19 | Vehicle Code.
| ||||||
20 | (15) Photoprocessing machinery and equipment, including | ||||||
21 | repair and
replacement parts, both new and used, including | ||||||
22 | that
manufactured on special order, certified by the purchaser | ||||||
23 | to be used
primarily for photoprocessing, and including
| ||||||
24 | photoprocessing machinery and equipment purchased for lease.
| ||||||
25 | (16) Until July 1, 2028, coal and aggregate exploration, | ||||||
26 | mining, off-highway hauling,
processing, maintenance, and |
| |||||||
| |||||||
1 | reclamation equipment,
including replacement parts and | ||||||
2 | equipment, and
including equipment purchased for lease, but | ||||||
3 | excluding motor
vehicles required to be registered under the | ||||||
4 | Illinois Vehicle Code. The changes made to this Section by | ||||||
5 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
6 | for credit or refund is allowed on or after August 16, 2013 | ||||||
7 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
8 | during the period beginning July 1, 2003 and ending on August | ||||||
9 | 16, 2013 (the effective date of Public Act 98-456).
| ||||||
10 | (17) Until July 1, 2003, distillation machinery and | ||||||
11 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
12 | retailer, certified by the user to be used
only for the | ||||||
13 | production of ethyl alcohol that will be used for consumption
| ||||||
14 | as motor fuel or as a component of motor fuel for the personal | ||||||
15 | use of the
user, and not subject to sale or resale.
| ||||||
16 | (18) Manufacturing and assembling machinery and equipment | ||||||
17 | used
primarily in the process of manufacturing or assembling | ||||||
18 | tangible
personal property for wholesale or retail sale or | ||||||
19 | lease, whether that sale
or lease is made directly by the | ||||||
20 | manufacturer or by some other person,
whether the materials | ||||||
21 | used in the process are
owned by the manufacturer or some other | ||||||
22 | person, or whether that sale or
lease is made apart from or as | ||||||
23 | an incident to the seller's engaging in
the service occupation | ||||||
24 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
25 | other similar items of no commercial value on
special order | ||||||
26 | for a particular purchaser. The exemption provided by this |
| |||||||
| |||||||
1 | paragraph (18) includes production related tangible personal | ||||||
2 | property, as defined in Section 3-50, purchased on or after | ||||||
3 | July 1, 2019. The exemption provided by this paragraph (18) | ||||||
4 | does not include machinery and equipment used in (i) the | ||||||
5 | generation of electricity for wholesale or retail sale; (ii) | ||||||
6 | the generation or treatment of natural or artificial gas for | ||||||
7 | wholesale or retail sale that is delivered to customers | ||||||
8 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
9 | water for wholesale or retail sale that is delivered to | ||||||
10 | customers through pipes, pipelines, or mains. The provisions | ||||||
11 | of Public Act 98-583 are declaratory of existing law as to the | ||||||
12 | meaning and scope of this exemption. Beginning on July 1, | ||||||
13 | 2017, the exemption provided by this paragraph (18) includes, | ||||||
14 | but is not limited to, graphic arts machinery and equipment, | ||||||
15 | as defined in paragraph (6) of this Section.
| ||||||
16 | (19) Personal property delivered to a purchaser or | ||||||
17 | purchaser's donee
inside Illinois when the purchase order for | ||||||
18 | that personal property was
received by a florist located | ||||||
19 | outside Illinois who has a florist located
inside Illinois | ||||||
20 | deliver the personal property.
| ||||||
21 | (20) Semen used for artificial insemination of livestock | ||||||
22 | for direct
agricultural production.
| ||||||
23 | (21) Horses, or interests in horses, registered with and | ||||||
24 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
25 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
26 | Horse Association, United States
Trotting Association, or |
| |||||||
| |||||||
1 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
2 | racing for prizes. This item (21) is exempt from the | ||||||
3 | provisions of Section 3-90, and the exemption provided for | ||||||
4 | under this item (21) applies for all periods beginning May 30, | ||||||
5 | 1995, but no claim for credit or refund is allowed on or after | ||||||
6 | January 1, 2008
for such taxes paid during the period | ||||||
7 | beginning May 30, 2000 and ending on January 1, 2008.
| ||||||
8 | (22) Computers and communications equipment utilized for | ||||||
9 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
10 | analysis, or treatment of hospital patients purchased by a | ||||||
11 | lessor who leases
the
equipment, under a lease of one year or | ||||||
12 | longer executed or in effect at the
time the lessor would | ||||||
13 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
14 | hospital
that has been issued an active tax exemption | ||||||
15 | identification number by
the
Department under Section 1g of | ||||||
16 | the Retailers' Occupation Tax Act. If the
equipment is leased | ||||||
17 | in a manner that does not qualify for
this exemption or is used | ||||||
18 | in any other non-exempt manner, the lessor
shall be liable for | ||||||
19 | the
tax imposed under this Act or the Service Use Tax Act, as | ||||||
20 | the case may
be, based on the fair market value of the property | ||||||
21 | at the time the
non-qualifying use occurs. No lessor shall | ||||||
22 | collect or attempt to collect an
amount (however
designated) | ||||||
23 | that purports to reimburse that lessor for the tax imposed by | ||||||
24 | this
Act or the Service Use Tax Act, as the case may be, if the | ||||||
25 | tax has not been
paid by the lessor. If a lessor improperly | ||||||
26 | collects any such amount from the
lessee, the lessee shall |
| |||||||
| |||||||
1 | have a legal right to claim a refund of that amount
from the | ||||||
2 | lessor. If, however, that amount is not refunded to the lessee | ||||||
3 | for
any reason, the lessor is liable to pay that amount to the | ||||||
4 | Department.
| ||||||
5 | (23) Personal property purchased by a lessor who leases | ||||||
6 | the
property, under
a
lease of
one year or longer executed or | ||||||
7 | in effect at the time
the lessor would otherwise be subject to | ||||||
8 | the tax imposed by this Act,
to a governmental body
that has | ||||||
9 | been issued an active sales tax exemption identification | ||||||
10 | number by the
Department under Section 1g of the Retailers' | ||||||
11 | Occupation Tax Act.
If the
property is leased in a manner that | ||||||
12 | does not qualify for
this exemption
or used in any other | ||||||
13 | non-exempt manner, the lessor shall be liable for the
tax | ||||||
14 | imposed under this Act or the Service Use Tax Act, as the case | ||||||
15 | may
be, based on the fair market value of the property at the | ||||||
16 | time the
non-qualifying use occurs. No lessor shall collect or | ||||||
17 | attempt to collect an
amount (however
designated) that | ||||||
18 | purports to reimburse that lessor for the tax imposed by this
| ||||||
19 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
20 | has not been
paid by the lessor. If a lessor improperly | ||||||
21 | collects any such amount from the
lessee, the lessee shall | ||||||
22 | have a legal right to claim a refund of that amount
from the | ||||||
23 | lessor. If, however, that amount is not refunded to the lessee | ||||||
24 | for
any reason, the lessor is liable to pay that amount to the | ||||||
25 | Department.
| ||||||
26 | (24) Beginning with taxable years ending on or after |
| |||||||
| |||||||
1 | December
31, 1995
and
ending with taxable years ending on or | ||||||
2 | before December 31, 2004,
personal property that is
donated | ||||||
3 | for disaster relief to be used in a State or federally declared
| ||||||
4 | disaster area in Illinois or bordering Illinois by a | ||||||
5 | manufacturer or retailer
that is registered in this State to a | ||||||
6 | corporation, society, association,
foundation, or institution | ||||||
7 | that has been issued a sales tax exemption
identification | ||||||
8 | number by the Department that assists victims of the disaster
| ||||||
9 | who reside within the declared disaster area.
| ||||||
10 | (25) Beginning with taxable years ending on or after | ||||||
11 | December
31, 1995 and
ending with taxable years ending on or | ||||||
12 | before December 31, 2004, personal
property that is used in | ||||||
13 | the performance of infrastructure repairs in this
State, | ||||||
14 | including but not limited to municipal roads and streets, | ||||||
15 | access roads,
bridges, sidewalks, waste disposal systems, | ||||||
16 | water and sewer line extensions,
water distribution and | ||||||
17 | purification facilities, storm water drainage and
retention | ||||||
18 | facilities, and sewage treatment facilities, resulting from a | ||||||
19 | State
or federally declared disaster in Illinois or bordering | ||||||
20 | Illinois when such
repairs are initiated on facilities located | ||||||
21 | in the declared disaster area
within 6 months after the | ||||||
22 | disaster.
| ||||||
23 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
24 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
25 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
26 | provisions
of
Section 3-90.
|
| |||||||
| |||||||
1 | (27) A motor vehicle, as that term is defined in Section | ||||||
2 | 1-146
of the
Illinois
Vehicle Code, that is donated to a | ||||||
3 | corporation, limited liability company,
society, association, | ||||||
4 | foundation, or institution that is determined by the
| ||||||
5 | Department to be organized and operated exclusively for | ||||||
6 | educational purposes.
For purposes of this exemption, "a | ||||||
7 | corporation, limited liability company,
society, association, | ||||||
8 | foundation, or institution organized and operated
exclusively | ||||||
9 | for educational purposes" means all tax-supported public | ||||||
10 | schools,
private schools that offer systematic instruction in | ||||||
11 | useful branches of
learning by methods common to public | ||||||
12 | schools and that compare favorably in
their scope and | ||||||
13 | intensity with the course of study presented in tax-supported
| ||||||
14 | schools, and vocational or technical schools or institutes | ||||||
15 | organized and
operated exclusively to provide a course of | ||||||
16 | study of not less than 6 weeks
duration and designed to prepare | ||||||
17 | individuals to follow a trade or to pursue a
manual, | ||||||
18 | technical, mechanical, industrial, business, or commercial
| ||||||
19 | occupation.
| ||||||
20 | (28) Beginning January 1, 2000, personal property, | ||||||
21 | including
food,
purchased through fundraising
events for the | ||||||
22 | benefit of
a public or private elementary or
secondary school, | ||||||
23 | a group of those schools, or one or more school
districts if | ||||||
24 | the events are
sponsored by an entity recognized by the school | ||||||
25 | district that consists
primarily of volunteers and includes
| ||||||
26 | parents and teachers of the school children. This paragraph |
| |||||||
| |||||||
1 | does not apply
to fundraising
events (i) for the benefit of | ||||||
2 | private home instruction or (ii)
for which the fundraising | ||||||
3 | entity purchases the personal property sold at
the events from | ||||||
4 | another individual or entity that sold the property for the
| ||||||
5 | purpose of resale by the fundraising entity and that
profits | ||||||
6 | from the sale to the
fundraising entity. This paragraph is | ||||||
7 | exempt
from the provisions
of Section 3-90.
| ||||||
8 | (29) Beginning January 1, 2000 and through December 31, | ||||||
9 | 2001, new or
used automatic vending
machines that prepare and | ||||||
10 | serve hot food and beverages, including coffee, soup,
and
| ||||||
11 | other items, and replacement parts for these machines.
| ||||||
12 | Beginning January 1,
2002 and through June 30, 2003, machines | ||||||
13 | and parts for machines used in
commercial, coin-operated | ||||||
14 | amusement and vending business if a use or occupation
tax is | ||||||
15 | paid on the gross receipts derived from the use of the | ||||||
16 | commercial,
coin-operated amusement and vending machines.
This
| ||||||
17 | paragraph
is exempt from the provisions of Section 3-90.
| ||||||
18 | (30) Beginning January 1, 2001 and through June 30, 2016, | ||||||
19 | food for human consumption that is to be consumed off the | ||||||
20 | premises
where it is sold (other than alcoholic beverages, | ||||||
21 | soft drinks, and food that
has been prepared for immediate | ||||||
22 | consumption) and prescription and
nonprescription medicines, | ||||||
23 | drugs, medical appliances, and insulin, urine
testing | ||||||
24 | materials, syringes, and needles used by diabetics, for human | ||||||
25 | use, when
purchased for use by a person receiving medical | ||||||
26 | assistance under Article V of
the Illinois Public Aid Code who |
| |||||||
| |||||||
1 | resides in a licensed long-term care facility,
as defined in | ||||||
2 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
3 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
4 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
5 | (31) Beginning on August 2, 2001 (the effective date of | ||||||
6 | Public Act 92-227),
computers and communications equipment
| ||||||
7 | utilized for any hospital purpose and equipment used in the | ||||||
8 | diagnosis,
analysis, or treatment of hospital patients | ||||||
9 | purchased by a lessor who leases
the equipment, under a lease | ||||||
10 | of one year or longer executed or in effect at the
time the | ||||||
11 | lessor would otherwise be subject to the tax imposed by this | ||||||
12 | Act, to a
hospital that has been issued an active tax exemption | ||||||
13 | identification number by
the Department under Section 1g of | ||||||
14 | the Retailers' Occupation Tax Act. If the
equipment is leased | ||||||
15 | in a manner that does not qualify for this exemption or is
used | ||||||
16 | in any other nonexempt manner, the lessor shall be liable for | ||||||
17 | the tax
imposed under this Act or the Service Use Tax Act, as | ||||||
18 | the case may be, based on
the fair market value of the property | ||||||
19 | at the time the nonqualifying use
occurs. No lessor shall | ||||||
20 | collect or attempt to collect an amount (however
designated) | ||||||
21 | that purports to reimburse that lessor for the tax imposed by | ||||||
22 | this
Act or the Service Use Tax Act, as the case may be, if the | ||||||
23 | tax has not been
paid by the lessor. If a lessor improperly | ||||||
24 | collects any such amount from the
lessee, the lessee shall | ||||||
25 | have a legal right to claim a refund of that amount
from the | ||||||
26 | lessor. If, however, that amount is not refunded to the lessee |
| |||||||
| |||||||
1 | for
any reason, the lessor is liable to pay that amount to the | ||||||
2 | Department.
This paragraph is exempt from the provisions of | ||||||
3 | Section 3-90.
| ||||||
4 | (32) Beginning on August 2, 2001 (the effective date of | ||||||
5 | Public Act 92-227),
personal property purchased by a lessor | ||||||
6 | who leases the property,
under a lease of one year or longer | ||||||
7 | executed or in effect at the time the
lessor would otherwise be | ||||||
8 | subject to the tax imposed by this Act, to a
governmental body | ||||||
9 | that has been issued an active sales tax exemption
| ||||||
10 | identification number by the Department under Section 1g of | ||||||
11 | the Retailers'
Occupation Tax Act. If the property is leased | ||||||
12 | in a manner that does not
qualify for this exemption or used in | ||||||
13 | any other nonexempt manner, the lessor
shall be liable for the | ||||||
14 | tax imposed under this Act or the Service Use Tax Act,
as the | ||||||
15 | case may be, based on the fair market value of the property at | ||||||
16 | the time
the nonqualifying use occurs. No lessor shall collect | ||||||
17 | or attempt to collect
an amount (however designated) that | ||||||
18 | purports to reimburse that lessor for the
tax imposed by this | ||||||
19 | Act or the Service Use Tax Act, as the case may be, if the
tax | ||||||
20 | has not been paid by the lessor. If a lessor improperly | ||||||
21 | collects any such
amount from the lessee, the lessee shall | ||||||
22 | have a legal right to claim a refund
of that amount from the | ||||||
23 | lessor. If, however, that amount is not refunded to
the lessee | ||||||
24 | for any reason, the lessor is liable to pay that amount to the
| ||||||
25 | Department. This paragraph is exempt from the provisions of | ||||||
26 | Section 3-90.
|
| |||||||
| |||||||
1 | (33) On and after July 1, 2003 and through June 30, 2004, | ||||||
2 | the use in this State of motor vehicles of
the second division | ||||||
3 | with a gross vehicle weight in excess of 8,000 pounds and
that | ||||||
4 | are subject to the commercial distribution fee imposed under | ||||||
5 | Section
3-815.1 of the Illinois Vehicle Code. Beginning on | ||||||
6 | July 1, 2004 and through June 30, 2005, the use in this State | ||||||
7 | of motor vehicles of the second division: (i) with a gross | ||||||
8 | vehicle weight rating in excess of 8,000 pounds; (ii) that are | ||||||
9 | subject to the commercial distribution fee imposed under | ||||||
10 | Section 3-815.1 of the Illinois Vehicle Code; and (iii) that | ||||||
11 | are primarily used for commercial purposes. Through June 30, | ||||||
12 | 2005, this exemption applies to repair and
replacement parts | ||||||
13 | added after the initial purchase of such a motor vehicle if
| ||||||
14 | that motor
vehicle is used in a manner that would qualify for | ||||||
15 | the rolling stock exemption
otherwise provided for in this | ||||||
16 | Act. For purposes of this paragraph, the term "used for | ||||||
17 | commercial purposes" means the transportation of persons or | ||||||
18 | property in furtherance of any commercial or industrial | ||||||
19 | enterprise, whether for-hire or not.
| ||||||
20 | (34) Beginning January 1, 2008, tangible personal property | ||||||
21 | used in the construction or maintenance of a community water | ||||||
22 | supply, as defined under Section 3.145 of the Environmental | ||||||
23 | Protection Act, that is operated by a not-for-profit | ||||||
24 | corporation that holds a valid water supply permit issued | ||||||
25 | under Title IV of the Environmental Protection Act. This | ||||||
26 | paragraph is exempt from the provisions of Section 3-90. |
| |||||||
| |||||||
1 | (35) Beginning January 1, 2010 and continuing through | ||||||
2 | December 31, 2024, materials, parts, equipment, components, | ||||||
3 | and furnishings incorporated into or upon an aircraft as part | ||||||
4 | of the modification, refurbishment, completion, replacement, | ||||||
5 | repair, or maintenance of the aircraft. This exemption | ||||||
6 | includes consumable supplies used in the modification, | ||||||
7 | refurbishment, completion, replacement, repair, and | ||||||
8 | maintenance of aircraft, but excludes any materials, parts, | ||||||
9 | equipment, components, and consumable supplies used in the | ||||||
10 | modification, replacement, repair, and maintenance of aircraft | ||||||
11 | engines or power plants, whether such engines or power plants | ||||||
12 | are installed or uninstalled upon any such aircraft. | ||||||
13 | "Consumable supplies" include, but are not limited to, | ||||||
14 | adhesive, tape, sandpaper, general purpose lubricants, | ||||||
15 | cleaning solution, latex gloves, and protective films. This | ||||||
16 | exemption applies only to the use of qualifying tangible | ||||||
17 | personal property by persons who modify, refurbish, complete, | ||||||
18 | repair, replace, or maintain aircraft and who (i) hold an Air | ||||||
19 | Agency Certificate and are empowered to operate an approved | ||||||
20 | repair station by the Federal Aviation Administration, (ii) | ||||||
21 | have a Class IV Rating, and (iii) conduct operations in | ||||||
22 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
23 | The exemption does not include aircraft operated by a | ||||||
24 | commercial air carrier providing scheduled passenger air | ||||||
25 | service pursuant to authority issued under Part 121 or Part | ||||||
26 | 129 of the Federal Aviation Regulations. The changes made to |
| |||||||
| |||||||
1 | this paragraph (35) by Public Act 98-534 are declarative of | ||||||
2 | existing law. It is the intent of the General Assembly that the | ||||||
3 | exemption under this paragraph (35) applies continuously from | ||||||
4 | January 1, 2010 through December 31, 2024; however, no claim | ||||||
5 | for credit or refund is allowed for taxes paid as a result of | ||||||
6 | the disallowance of this exemption on or after January 1, 2015 | ||||||
7 | and prior to February 5, 2020 ( the effective date of Public Act | ||||||
8 | 101-629) this amendatory Act of the 101st General Assembly . | ||||||
9 | (36) Tangible personal property purchased by a | ||||||
10 | public-facilities corporation, as described in Section | ||||||
11 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
12 | constructing or furnishing a municipal convention hall, but | ||||||
13 | only if the legal title to the municipal convention hall is | ||||||
14 | transferred to the municipality without any further | ||||||
15 | consideration by or on behalf of the municipality at the time | ||||||
16 | of the completion of the municipal convention hall or upon the | ||||||
17 | retirement or redemption of any bonds or other debt | ||||||
18 | instruments issued by the public-facilities corporation in | ||||||
19 | connection with the development of the municipal convention | ||||||
20 | hall. This exemption includes existing public-facilities | ||||||
21 | corporations as provided in Section 11-65-25 of the Illinois | ||||||
22 | Municipal Code. This paragraph is exempt from the provisions | ||||||
23 | of Section 3-90. | ||||||
24 | (37) Beginning January 1, 2017 and through December 31, | ||||||
25 | 2026, menstrual pads, tampons, and menstrual cups. | ||||||
26 | (38) Merchandise that is subject to the Rental Purchase |
| |||||||
| |||||||
1 | Agreement Occupation and Use Tax. The purchaser must certify | ||||||
2 | that the item is purchased to be rented subject to a rental | ||||||
3 | purchase agreement, as defined in the Rental Purchase | ||||||
4 | Agreement Act, and provide proof of registration under the | ||||||
5 | Rental Purchase Agreement Occupation and Use Tax Act. This | ||||||
6 | paragraph is exempt from the provisions of Section 3-90. | ||||||
7 | (39) Tangible personal property purchased by a purchaser | ||||||
8 | who is exempt from the tax imposed by this Act by operation of | ||||||
9 | federal law. This paragraph is exempt from the provisions of | ||||||
10 | Section 3-90. | ||||||
11 | (40) Qualified tangible personal property used in the | ||||||
12 | construction or operation of a data center that has been | ||||||
13 | granted a certificate of exemption by the Department of | ||||||
14 | Commerce and Economic Opportunity, whether that tangible | ||||||
15 | personal property is purchased by the owner, operator, or | ||||||
16 | tenant of the data center or by a contractor or subcontractor | ||||||
17 | of the owner, operator, or tenant. Data centers that would | ||||||
18 | have qualified for a certificate of exemption prior to January | ||||||
19 | 1, 2020 had Public Act 101-31 been in effect may apply for and | ||||||
20 | obtain an exemption for subsequent purchases of computer | ||||||
21 | equipment or enabling software purchased or leased to upgrade, | ||||||
22 | supplement, or replace computer equipment or enabling software | ||||||
23 | purchased or leased in the original investment that would have | ||||||
24 | qualified. | ||||||
25 | The Department of Commerce and Economic Opportunity shall | ||||||
26 | grant a certificate of exemption under this item (40) to |
| |||||||
| |||||||
1 | qualified data centers as defined by Section 605-1025 of the | ||||||
2 | Department of Commerce and Economic Opportunity Law of the
| ||||||
3 | Civil Administrative Code of Illinois. | ||||||
4 | For the purposes of this item (40): | ||||||
5 | "Data center" means a building or a series of | ||||||
6 | buildings rehabilitated or constructed to house working | ||||||
7 | servers in one physical location or multiple sites within | ||||||
8 | the State of Illinois. | ||||||
9 | "Qualified tangible personal property" means: | ||||||
10 | electrical systems and equipment; climate control and | ||||||
11 | chilling equipment and systems; mechanical systems and | ||||||
12 | equipment; monitoring and secure systems; emergency | ||||||
13 | generators; hardware; computers; servers; data storage | ||||||
14 | devices; network connectivity equipment; racks; cabinets; | ||||||
15 | telecommunications cabling infrastructure; raised floor | ||||||
16 | systems; peripheral components or systems; software; | ||||||
17 | mechanical, electrical, or plumbing systems; battery | ||||||
18 | systems; cooling systems and towers; temperature control | ||||||
19 | systems; other cabling; and other data center | ||||||
20 | infrastructure equipment and systems necessary to operate | ||||||
21 | qualified tangible personal property, including fixtures; | ||||||
22 | and component parts of any of the foregoing, including | ||||||
23 | installation, maintenance, repair, refurbishment, and | ||||||
24 | replacement of qualified tangible personal property to | ||||||
25 | generate, transform, transmit, distribute, or manage | ||||||
26 | electricity necessary to operate qualified tangible |
| |||||||
| |||||||
1 | personal property; and all other tangible personal | ||||||
2 | property that is essential to the operations of a computer | ||||||
3 | data center. The term "qualified tangible personal | ||||||
4 | property" also includes building materials physically | ||||||
5 | incorporated in to the qualifying data center. To document | ||||||
6 | the exemption allowed under this Section, the retailer | ||||||
7 | must obtain from the purchaser a copy of the certificate | ||||||
8 | of eligibility issued by the Department of Commerce and | ||||||
9 | Economic Opportunity. | ||||||
10 | This item (40) is exempt from the provisions of Section | ||||||
11 | 3-90. | ||||||
12 | (41) Beginning July 1, 2022, breast pumps, breast pump | ||||||
13 | collection and storage supplies, and breast pump kits. This | ||||||
14 | item (41) is exempt from the provisions of Section 3-90. As | ||||||
15 | used in this item (41): | ||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
1 | manufacturer or distributor. | ||||||
2 | (42) (41) Tangible personal property sold by or on behalf | ||||||
3 | of the State Treasurer pursuant to the Revised Uniform | ||||||
4 | Unclaimed Property Act. This item (42) (41) is exempt from the | ||||||
5 | provisions of Section 3-90. | ||||||
6 | (Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; | ||||||
7 | 101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff. | ||||||
8 | 6-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22; | ||||||
9 | 102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026, | ||||||
10 | eff. 5-27-22; revised 8-1-22.)
| ||||||
11 | Section 15-10. The Service Use Tax Act is amended by | ||||||
12 | changing Section 3-5 as follows:
| ||||||
13 | (35 ILCS 110/3-5)
| ||||||
14 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
15 | personal property
is exempt from the tax imposed by this Act:
| ||||||
16 | (1) Personal property purchased from a corporation, | ||||||
17 | society,
association, foundation, institution, or | ||||||
18 | organization, other than a limited
liability company, that is | ||||||
19 | organized and operated as a not-for-profit service
enterprise | ||||||
20 | for the benefit of persons 65 years of age or older if the | ||||||
21 | personal
property was not purchased by the enterprise for the | ||||||
22 | purpose of resale by the
enterprise.
| ||||||
23 | (2) Personal property purchased by a non-profit Illinois | ||||||
24 | county fair
association for use in conducting, operating, or |
| |||||||
| |||||||
1 | promoting the county fair.
| ||||||
2 | (3) Personal property purchased by a not-for-profit arts
| ||||||
3 | or cultural
organization that establishes, by proof required | ||||||
4 | by the Department by rule,
that it has received an exemption | ||||||
5 | under Section 501(c)(3) of the Internal
Revenue Code and that | ||||||
6 | is organized and operated primarily for the
presentation
or | ||||||
7 | support of arts or cultural programming, activities, or | ||||||
8 | services. These
organizations include, but are not limited to, | ||||||
9 | music and dramatic arts
organizations such as symphony | ||||||
10 | orchestras and theatrical groups, arts and
cultural service | ||||||
11 | organizations, local arts councils, visual arts organizations,
| ||||||
12 | and media arts organizations.
On and after July 1, 2001 (the | ||||||
13 | effective date of Public Act 92-35), however, an entity | ||||||
14 | otherwise eligible for this exemption shall not
make tax-free | ||||||
15 | purchases unless it has an active identification number issued | ||||||
16 | by
the Department.
| ||||||
17 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
18 | coinage issued
by the State of Illinois, the government of the | ||||||
19 | United States of America,
or the government of any foreign | ||||||
20 | country, and bullion.
| ||||||
21 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
22 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
23 | equipment, including
repair and
replacement parts, both new | ||||||
24 | and used, and including that manufactured on
special order or | ||||||
25 | purchased for lease, certified by the purchaser to be used
| ||||||
26 | primarily for graphic arts production.
Equipment includes |
| |||||||
| |||||||
1 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
2 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
3 | immediate
change upon a graphic arts product. Beginning on | ||||||
4 | July 1, 2017, graphic arts machinery and equipment is included | ||||||
5 | in the manufacturing and assembling machinery and equipment | ||||||
6 | exemption under Section 2 of this Act.
| ||||||
7 | (6) Personal property purchased from a teacher-sponsored | ||||||
8 | student
organization affiliated with an elementary or | ||||||
9 | secondary school located
in Illinois.
| ||||||
10 | (7) Farm machinery and equipment, both new and used, | ||||||
11 | including that
manufactured on special order, certified by the | ||||||
12 | purchaser to be used
primarily for production agriculture or | ||||||
13 | State or federal agricultural
programs, including individual | ||||||
14 | replacement parts for the machinery and
equipment, including | ||||||
15 | machinery and equipment purchased for lease,
and including | ||||||
16 | implements of husbandry defined in Section 1-130 of
the | ||||||
17 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
18 | chemical and
fertilizer spreaders, and nurse wagons required | ||||||
19 | to be registered
under Section 3-809 of the Illinois Vehicle | ||||||
20 | Code,
but
excluding other motor vehicles required to be | ||||||
21 | registered under the Illinois
Vehicle Code.
Horticultural | ||||||
22 | polyhouses or hoop houses used for propagating, growing, or
| ||||||
23 | overwintering plants shall be considered farm machinery and | ||||||
24 | equipment under
this item (7).
Agricultural chemical tender | ||||||
25 | tanks and dry boxes shall include units sold
separately from a | ||||||
26 | motor vehicle required to be licensed and units sold mounted
|
| |||||||
| |||||||
1 | on a motor vehicle required to be licensed if the selling price | ||||||
2 | of the tender
is separately stated.
| ||||||
3 | Farm machinery and equipment shall include precision | ||||||
4 | farming equipment
that is
installed or purchased to be | ||||||
5 | installed on farm machinery and equipment
including, but not | ||||||
6 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
7 | or spreaders.
Precision farming equipment includes, but is not | ||||||
8 | limited to,
soil testing sensors, computers, monitors, | ||||||
9 | software, global positioning
and mapping systems, and other | ||||||
10 | such equipment.
| ||||||
11 | Farm machinery and equipment also includes computers, | ||||||
12 | sensors, software, and
related equipment used primarily in the
| ||||||
13 | computer-assisted operation of production agriculture | ||||||
14 | facilities, equipment,
and activities such as, but
not limited | ||||||
15 | to,
the collection, monitoring, and correlation of
animal and | ||||||
16 | crop data for the purpose of
formulating animal diets and | ||||||
17 | agricultural chemicals. | ||||||
18 | Beginning on January 1, 2024, farm machinery and equipment | ||||||
19 | also includes electrical power generation equipment used | ||||||
20 | primarily for production agriculture. | ||||||
21 | This item (7) is exempt
from the provisions of
Section | ||||||
22 | 3-75.
| ||||||
23 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
24 | to or used by an air common
carrier, certified by the carrier | ||||||
25 | to be used for consumption, shipment, or
storage in the | ||||||
26 | conduct of its business as an air common carrier, for a
flight |
| |||||||
| |||||||
1 | destined for or returning from a location or locations
outside | ||||||
2 | the United States without regard to previous or subsequent | ||||||
3 | domestic
stopovers.
| ||||||
4 | Beginning July 1, 2013, fuel and petroleum products sold | ||||||
5 | to or used by an air carrier, certified by the carrier to be | ||||||
6 | used for consumption, shipment, or storage in the conduct of | ||||||
7 | its business as an air common carrier, for a flight that (i) is | ||||||
8 | engaged in foreign trade or is engaged in trade between the | ||||||
9 | United States and any of its possessions and (ii) transports | ||||||
10 | at least one individual or package for hire from the city of | ||||||
11 | origination to the city of final destination on the same | ||||||
12 | aircraft, without regard to a change in the flight number of | ||||||
13 | that aircraft. | ||||||
14 | (9) Proceeds of mandatory service charges separately | ||||||
15 | stated on
customers' bills for the purchase and consumption of | ||||||
16 | food and beverages
acquired as an incident to the purchase of a | ||||||
17 | service from a serviceman, to
the extent that the proceeds of | ||||||
18 | the service charge are in fact
turned over as tips or as a | ||||||
19 | substitute for tips to the employees who
participate directly | ||||||
20 | in preparing, serving, hosting or cleaning up the
food or | ||||||
21 | beverage function with respect to which the service charge is | ||||||
22 | imposed.
| ||||||
23 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
24 | and production
equipment, including
(i) rigs and parts of | ||||||
25 | rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) | ||||||
26 | pipe and tubular goods, including casing and
drill strings, |
| |||||||
| |||||||
1 | (iii) pumps and pump-jack units, (iv) storage tanks and flow
| ||||||
2 | lines, (v) any individual replacement part for oil field | ||||||
3 | exploration,
drilling, and production equipment, and (vi) | ||||||
4 | machinery and equipment purchased
for lease; but
excluding | ||||||
5 | motor vehicles required to be registered under the Illinois
| ||||||
6 | Vehicle Code.
| ||||||
7 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
8 | and
equipment, including repair and replacement parts, both | ||||||
9 | new and
used, including that manufactured on special order, | ||||||
10 | certified by the
purchaser to be used primarily for | ||||||
11 | photoprocessing, and including
photoprocessing machinery and | ||||||
12 | equipment purchased for lease.
| ||||||
13 | (12) Until July 1, 2028, coal and aggregate exploration, | ||||||
14 | mining, off-highway hauling,
processing,
maintenance, and | ||||||
15 | reclamation equipment, including
replacement parts and | ||||||
16 | equipment, and including
equipment purchased for lease, but | ||||||
17 | excluding motor vehicles required to be
registered under the | ||||||
18 | Illinois Vehicle Code. The changes made to this Section by | ||||||
19 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
20 | for credit or refund is allowed on or after August 16, 2013 | ||||||
21 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
22 | during the period beginning July 1, 2003 and ending on August | ||||||
23 | 16, 2013 (the effective date of Public Act 98-456).
| ||||||
24 | (13) Semen used for artificial insemination of livestock | ||||||
25 | for direct
agricultural production.
| ||||||
26 | (14) Horses, or interests in horses, registered with and |
| |||||||
| |||||||
1 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
2 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
3 | Horse Association, United States
Trotting Association, or | ||||||
4 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
5 | racing for prizes. This item (14) is exempt from the | ||||||
6 | provisions of Section 3-75, and the exemption provided for | ||||||
7 | under this item (14) applies for all periods beginning May 30, | ||||||
8 | 1995, but no claim for credit or refund is allowed on or after | ||||||
9 | January 1, 2008 (the effective date of Public Act 95-88) for | ||||||
10 | such taxes paid during the period beginning May 30, 2000 and | ||||||
11 | ending on January 1, 2008 (the effective date of Public Act | ||||||
12 | 95-88).
| ||||||
13 | (15) Computers and communications equipment utilized for | ||||||
14 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
15 | analysis, or treatment of hospital patients purchased by a | ||||||
16 | lessor who leases
the
equipment, under a lease of one year or | ||||||
17 | longer executed or in effect at the
time
the lessor would | ||||||
18 | otherwise be subject to the tax imposed by this Act,
to a
| ||||||
19 | hospital
that has been issued an active tax exemption | ||||||
20 | identification number by the
Department under Section 1g of | ||||||
21 | the Retailers' Occupation Tax Act.
If the
equipment is leased | ||||||
22 | in a manner that does not qualify for
this exemption
or is used | ||||||
23 | in any other non-exempt manner,
the lessor shall be liable for | ||||||
24 | the
tax imposed under this Act or the Use Tax Act, as the case | ||||||
25 | may
be, based on the fair market value of the property at the | ||||||
26 | time the
non-qualifying use occurs. No lessor shall collect or |
| |||||||
| |||||||
1 | attempt to collect an
amount (however
designated) that | ||||||
2 | purports to reimburse that lessor for the tax imposed by this
| ||||||
3 | Act or the Use Tax Act, as the case may be, if the tax has not | ||||||
4 | been
paid by the lessor. If a lessor improperly collects any | ||||||
5 | such amount from the
lessee, the lessee shall have a legal | ||||||
6 | right to claim a refund of that amount
from the lessor. If, | ||||||
7 | however, that amount is not refunded to the lessee for
any | ||||||
8 | reason, the lessor is liable to pay that amount to the | ||||||
9 | Department.
| ||||||
10 | (16) Personal property purchased by a lessor who leases | ||||||
11 | the
property, under
a
lease of one year or longer executed or | ||||||
12 | in effect at the time
the lessor would otherwise be subject to | ||||||
13 | the tax imposed by this Act,
to a governmental body
that has | ||||||
14 | been issued an active tax exemption identification number by | ||||||
15 | the
Department under Section 1g of the Retailers' Occupation | ||||||
16 | Tax Act.
If the
property is leased in a manner that does not | ||||||
17 | qualify for
this exemption
or is used in any other non-exempt | ||||||
18 | manner,
the lessor shall be liable for the
tax imposed under | ||||||
19 | this Act or the Use Tax Act, as the case may
be, based on the | ||||||
20 | fair market value of the property at the time the
| ||||||
21 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
22 | to collect an
amount (however
designated) that purports to | ||||||
23 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
24 | Use Tax Act, as the case may be, if the tax has not been
paid | ||||||
25 | by the lessor. If a lessor improperly collects any such amount | ||||||
26 | from the
lessee, the lessee shall have a legal right to claim a |
| |||||||
| |||||||
1 | refund of that amount
from the lessor. If, however, that | ||||||
2 | amount is not refunded to the lessee for
any reason, the lessor | ||||||
3 | is liable to pay that amount to the Department.
| ||||||
4 | (17) Beginning with taxable years ending on or after | ||||||
5 | December
31,
1995
and
ending with taxable years ending on or | ||||||
6 | before December 31, 2004,
personal property that is
donated | ||||||
7 | for disaster relief to be used in a State or federally declared
| ||||||
8 | disaster area in Illinois or bordering Illinois by a | ||||||
9 | manufacturer or retailer
that is registered in this State to a | ||||||
10 | corporation, society, association,
foundation, or institution | ||||||
11 | that has been issued a sales tax exemption
identification | ||||||
12 | number by the Department that assists victims of the disaster
| ||||||
13 | who reside within the declared disaster area.
| ||||||
14 | (18) Beginning with taxable years ending on or after | ||||||
15 | December
31, 1995 and
ending with taxable years ending on or | ||||||
16 | before December 31, 2004, personal
property that is used in | ||||||
17 | the performance of infrastructure repairs in this
State, | ||||||
18 | including but not limited to municipal roads and streets, | ||||||
19 | access roads,
bridges, sidewalks, waste disposal systems, | ||||||
20 | water and sewer line extensions,
water distribution and | ||||||
21 | purification facilities, storm water drainage and
retention | ||||||
22 | facilities, and sewage treatment facilities, resulting from a | ||||||
23 | State
or federally declared disaster in Illinois or bordering | ||||||
24 | Illinois when such
repairs are initiated on facilities located | ||||||
25 | in the declared disaster area
within 6 months after the | ||||||
26 | disaster.
|
| |||||||
| |||||||
1 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
2 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
3 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
4 | provisions
of
Section 3-75.
| ||||||
5 | (20) A motor vehicle, as that term is defined in Section | ||||||
6 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
7 | corporation, limited liability
company, society, association, | ||||||
8 | foundation, or institution that is determined by
the | ||||||
9 | Department to be organized and operated exclusively for | ||||||
10 | educational
purposes. For purposes of this exemption, "a | ||||||
11 | corporation, limited liability
company, society, association, | ||||||
12 | foundation, or institution organized and
operated
exclusively | ||||||
13 | for educational purposes" means all tax-supported public | ||||||
14 | schools,
private schools that offer systematic instruction in | ||||||
15 | useful branches of
learning by methods common to public | ||||||
16 | schools and that compare favorably in
their scope and | ||||||
17 | intensity with the course of study presented in tax-supported
| ||||||
18 | schools, and vocational or technical schools or institutes | ||||||
19 | organized and
operated exclusively to provide a course of | ||||||
20 | study of not less than 6 weeks
duration and designed to prepare | ||||||
21 | individuals to follow a trade or to pursue a
manual, | ||||||
22 | technical, mechanical, industrial, business, or commercial
| ||||||
23 | occupation.
| ||||||
24 | (21) Beginning January 1, 2000, personal property, | ||||||
25 | including
food,
purchased through fundraising
events for the | ||||||
26 | benefit of
a public or private elementary or
secondary school, |
| |||||||
| |||||||
1 | a group of those schools, or one or more school
districts if | ||||||
2 | the events are
sponsored by an entity recognized by the school | ||||||
3 | district that consists
primarily of volunteers and includes
| ||||||
4 | parents and teachers of the school children. This paragraph | ||||||
5 | does not apply
to fundraising
events (i) for the benefit of | ||||||
6 | private home instruction or (ii)
for which the fundraising | ||||||
7 | entity purchases the personal property sold at
the events from | ||||||
8 | another individual or entity that sold the property for the
| ||||||
9 | purpose of resale by the fundraising entity and that
profits | ||||||
10 | from the sale to the
fundraising entity. This paragraph is | ||||||
11 | exempt
from the provisions
of Section 3-75.
| ||||||
12 | (22) Beginning January 1, 2000
and through December 31, | ||||||
13 | 2001, new or used automatic vending
machines that prepare and | ||||||
14 | serve hot food and beverages, including coffee, soup,
and
| ||||||
15 | other items, and replacement parts for these machines.
| ||||||
16 | Beginning January 1,
2002 and through June 30, 2003, machines | ||||||
17 | and parts for machines used in
commercial, coin-operated
| ||||||
18 | amusement
and vending business if a use or occupation tax is | ||||||
19 | paid on the gross receipts
derived from
the use of the | ||||||
20 | commercial, coin-operated amusement and vending machines.
This
| ||||||
21 | paragraph
is exempt from the provisions of Section 3-75.
| ||||||
22 | (23) Beginning August 23, 2001 and through June 30, 2016, | ||||||
23 | food for human consumption that is to be consumed off the
| ||||||
24 | premises
where it is sold (other than alcoholic beverages, | ||||||
25 | soft drinks, and food that
has been prepared for immediate | ||||||
26 | consumption) and prescription and
nonprescription medicines, |
| |||||||
| |||||||
1 | drugs, medical appliances, and insulin, urine
testing | ||||||
2 | materials, syringes, and needles used by diabetics, for human | ||||||
3 | use, when
purchased for use by a person receiving medical | ||||||
4 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
5 | resides in a licensed long-term care facility,
as defined in | ||||||
6 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
7 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
8 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
9 | (24) Beginning on August 2, 2001 (the effective date of | ||||||
10 | Public Act 92-227), computers and communications equipment
| ||||||
11 | utilized for any hospital purpose and equipment used in the | ||||||
12 | diagnosis,
analysis, or treatment of hospital patients | ||||||
13 | purchased by a lessor who leases
the equipment, under a lease | ||||||
14 | of one year or longer executed or in effect at the
time the | ||||||
15 | lessor would otherwise be subject to the tax imposed by this | ||||||
16 | Act, to a
hospital that has been issued an active tax exemption | ||||||
17 | identification number by
the Department under Section 1g of | ||||||
18 | the Retailers' Occupation Tax Act. If the
equipment is leased | ||||||
19 | in a manner that does not qualify for this exemption or is
used | ||||||
20 | in any other nonexempt manner, the lessor shall be liable for | ||||||
21 | the
tax imposed under this Act or the Use Tax Act, as the case | ||||||
22 | may be, based on the
fair market value of the property at the | ||||||
23 | time the nonqualifying use occurs.
No lessor shall collect or | ||||||
24 | attempt to collect an amount (however
designated) that | ||||||
25 | purports to reimburse that lessor for the tax imposed by this
| ||||||
26 | Act or the Use Tax Act, as the case may be, if the tax has not |
| |||||||
| |||||||
1 | been
paid by the lessor. If a lessor improperly collects any | ||||||
2 | such amount from the
lessee, the lessee shall have a legal | ||||||
3 | right to claim a refund of that amount
from the lessor. If, | ||||||
4 | however, that amount is not refunded to the lessee for
any | ||||||
5 | reason, the lessor is liable to pay that amount to the | ||||||
6 | Department.
This paragraph is exempt from the provisions of | ||||||
7 | Section 3-75.
| ||||||
8 | (25) Beginning
on August 2, 2001 (the effective date of | ||||||
9 | Public Act 92-227),
personal property purchased by a lessor
| ||||||
10 | who leases the property, under a lease of one year or longer | ||||||
11 | executed or in
effect at the time the lessor would otherwise be | ||||||
12 | subject to the tax imposed by
this Act, to a governmental body | ||||||
13 | that has been issued an active tax exemption
identification | ||||||
14 | number by the Department under Section 1g of the Retailers'
| ||||||
15 | Occupation Tax Act. If the property is leased in a manner that | ||||||
16 | does not
qualify for this exemption or is used in any other | ||||||
17 | nonexempt manner, the
lessor shall be liable for the tax | ||||||
18 | imposed under this Act or the Use Tax Act,
as the case may be, | ||||||
19 | based on the fair market value of the property at the time
the | ||||||
20 | nonqualifying use occurs. No lessor shall collect or attempt | ||||||
21 | to collect
an amount (however designated) that purports to | ||||||
22 | reimburse that lessor for the
tax imposed by this Act or the | ||||||
23 | Use Tax Act, as the case may be, if the tax has
not been paid | ||||||
24 | by the lessor. If a lessor improperly collects any such amount
| ||||||
25 | from the lessee, the lessee shall have a legal right to claim a | ||||||
26 | refund of that
amount from the lessor. If, however, that |
| |||||||
| |||||||
1 | amount is not refunded to the lessee
for any reason, the lessor | ||||||
2 | is liable to pay that amount to the Department.
This paragraph | ||||||
3 | is exempt from the provisions of Section 3-75.
| ||||||
4 | (26) Beginning January 1, 2008, tangible personal property | ||||||
5 | used in the construction or maintenance of a community water | ||||||
6 | supply, as defined under Section 3.145 of the Environmental | ||||||
7 | Protection Act, that is operated by a not-for-profit | ||||||
8 | corporation that holds a valid water supply permit issued | ||||||
9 | under Title IV of the Environmental Protection Act. This | ||||||
10 | paragraph is exempt from the provisions of Section 3-75.
| ||||||
11 | (27) Beginning January 1, 2010 and continuing through | ||||||
12 | December 31, 2024, materials, parts, equipment, components, | ||||||
13 | and furnishings incorporated into or upon an aircraft as part | ||||||
14 | of the modification, refurbishment, completion, replacement, | ||||||
15 | repair, or maintenance of the aircraft. This exemption | ||||||
16 | includes consumable supplies used in the modification, | ||||||
17 | refurbishment, completion, replacement, repair, and | ||||||
18 | maintenance of aircraft, but excludes any materials, parts, | ||||||
19 | equipment, components, and consumable supplies used in the | ||||||
20 | modification, replacement, repair, and maintenance of aircraft | ||||||
21 | engines or power plants, whether such engines or power plants | ||||||
22 | are installed or uninstalled upon any such aircraft. | ||||||
23 | "Consumable supplies" include, but are not limited to, | ||||||
24 | adhesive, tape, sandpaper, general purpose lubricants, | ||||||
25 | cleaning solution, latex gloves, and protective films. This | ||||||
26 | exemption applies only to the use of qualifying tangible |
| |||||||
| |||||||
1 | personal property transferred incident to the modification, | ||||||
2 | refurbishment, completion, replacement, repair, or maintenance | ||||||
3 | of aircraft by persons who (i) hold an Air Agency Certificate | ||||||
4 | and are empowered to operate an approved repair station by the | ||||||
5 | Federal Aviation Administration, (ii) have a Class IV Rating, | ||||||
6 | and (iii) conduct operations in accordance with Part 145 of | ||||||
7 | the Federal Aviation Regulations. The exemption does not | ||||||
8 | include aircraft operated by a commercial air carrier | ||||||
9 | providing scheduled passenger air service pursuant to | ||||||
10 | authority issued under Part 121 or Part 129 of the Federal | ||||||
11 | Aviation Regulations. The changes made to this paragraph (27) | ||||||
12 | by Public Act 98-534 are declarative of existing law. It is the | ||||||
13 | intent of the General Assembly that the exemption under this | ||||||
14 | paragraph (27) applies continuously from January 1, 2010 | ||||||
15 | through December 31, 2024; however, no claim for credit or | ||||||
16 | refund is allowed for taxes paid as a result of the | ||||||
17 | disallowance of this exemption on or after January 1, 2015 and | ||||||
18 | prior to February 5, 2020 ( the effective date of Public Act | ||||||
19 | 101-629) this amendatory Act of the 101st General Assembly . | ||||||
20 | (28) Tangible personal property purchased by a | ||||||
21 | public-facilities corporation, as described in Section | ||||||
22 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
23 | constructing or furnishing a municipal convention hall, but | ||||||
24 | only if the legal title to the municipal convention hall is | ||||||
25 | transferred to the municipality without any further | ||||||
26 | consideration by or on behalf of the municipality at the time |
| |||||||
| |||||||
1 | of the completion of the municipal convention hall or upon the | ||||||
2 | retirement or redemption of any bonds or other debt | ||||||
3 | instruments issued by the public-facilities corporation in | ||||||
4 | connection with the development of the municipal convention | ||||||
5 | hall. This exemption includes existing public-facilities | ||||||
6 | corporations as provided in Section 11-65-25 of the Illinois | ||||||
7 | Municipal Code. This paragraph is exempt from the provisions | ||||||
8 | of Section 3-75. | ||||||
9 | (29) Beginning January 1, 2017 and through December 31, | ||||||
10 | 2026, menstrual pads, tampons, and menstrual cups. | ||||||
11 | (30) Tangible personal property transferred to a purchaser | ||||||
12 | who is exempt from the tax imposed by this Act by operation of | ||||||
13 | federal law. This paragraph is exempt from the provisions of | ||||||
14 | Section 3-75. | ||||||
15 | (31) Qualified tangible personal property used in the | ||||||
16 | construction or operation of a data center that has been | ||||||
17 | granted a certificate of exemption by the Department of | ||||||
18 | Commerce and Economic Opportunity, whether that tangible | ||||||
19 | personal property is purchased by the owner, operator, or | ||||||
20 | tenant of the data center or by a contractor or subcontractor | ||||||
21 | of the owner, operator, or tenant. Data centers that would | ||||||
22 | have qualified for a certificate of exemption prior to January | ||||||
23 | 1, 2020 had Public Act 101-31 this amendatory Act of the 101st | ||||||
24 | General Assembly been in effect, may apply for and obtain an | ||||||
25 | exemption for subsequent purchases of computer equipment or | ||||||
26 | enabling software purchased or leased to upgrade, supplement, |
| |||||||
| |||||||
1 | or replace computer equipment or enabling software purchased | ||||||
2 | or leased in the original investment that would have | ||||||
3 | qualified. | ||||||
4 | The Department of Commerce and Economic Opportunity shall | ||||||
5 | grant a certificate of exemption under this item (31) to | ||||||
6 | qualified data centers as defined by Section 605-1025 of the | ||||||
7 | Department of Commerce and Economic Opportunity Law of the
| ||||||
8 | Civil Administrative Code of Illinois. | ||||||
9 | For the purposes of this item (31): | ||||||
10 | "Data center" means a building or a series of | ||||||
11 | buildings rehabilitated or constructed to house working | ||||||
12 | servers in one physical location or multiple sites within | ||||||
13 | the State of Illinois. | ||||||
14 | "Qualified tangible personal property" means: | ||||||
15 | electrical systems and equipment; climate control and | ||||||
16 | chilling equipment and systems; mechanical systems and | ||||||
17 | equipment; monitoring and secure systems; emergency | ||||||
18 | generators; hardware; computers; servers; data storage | ||||||
19 | devices; network connectivity equipment; racks; cabinets; | ||||||
20 | telecommunications cabling infrastructure; raised floor | ||||||
21 | systems; peripheral components or systems; software; | ||||||
22 | mechanical, electrical, or plumbing systems; battery | ||||||
23 | systems; cooling systems and towers; temperature control | ||||||
24 | systems; other cabling; and other data center | ||||||
25 | infrastructure equipment and systems necessary to operate | ||||||
26 | qualified tangible personal property, including fixtures; |
| |||||||
| |||||||
1 | and component parts of any of the foregoing, including | ||||||
2 | installation, maintenance, repair, refurbishment, and | ||||||
3 | replacement of qualified tangible personal property to | ||||||
4 | generate, transform, transmit, distribute, or manage | ||||||
5 | electricity necessary to operate qualified tangible | ||||||
6 | personal property; and all other tangible personal | ||||||
7 | property that is essential to the operations of a computer | ||||||
8 | data center. The term "qualified tangible personal | ||||||
9 | property" also includes building materials physically | ||||||
10 | incorporated in to the qualifying data center. To document | ||||||
11 | the exemption allowed under this Section, the retailer | ||||||
12 | must obtain from the purchaser a copy of the certificate | ||||||
13 | of eligibility issued by the Department of Commerce and | ||||||
14 | Economic Opportunity. | ||||||
15 | This item (31) is exempt from the provisions of Section | ||||||
16 | 3-75. | ||||||
17 | (32) Beginning July 1, 2022, breast pumps, breast pump | ||||||
18 | collection and storage supplies, and breast pump kits. This | ||||||
19 | item (32) is exempt from the provisions of Section 3-75. As | ||||||
20 | used in this item (32): | ||||||
21 | "Breast pump" means an electrically controlled or | ||||||
22 | manually controlled pump device designed or marketed to be | ||||||
23 | used to express milk from a human breast during lactation, | ||||||
24 | including the pump device and any battery, AC adapter, or | ||||||
25 | other power supply unit that is used to power the pump | ||||||
26 | device and is packaged and sold with the pump device at the |
| |||||||
| |||||||
1 | time of sale. | ||||||
2 | "Breast pump collection and storage supplies" means | ||||||
3 | items of tangible personal property designed or marketed | ||||||
4 | to be used in conjunction with a breast pump to collect | ||||||
5 | milk expressed from a human breast and to store collected | ||||||
6 | milk until it is ready for consumption. | ||||||
7 | "Breast pump collection and storage supplies" | ||||||
8 | includes, but is not limited to: breast shields and breast | ||||||
9 | shield connectors; breast pump tubes and tubing adapters; | ||||||
10 | breast pump valves and membranes; backflow protectors and | ||||||
11 | backflow protector adaptors; bottles and bottle caps | ||||||
12 | specific to the operation of the breast pump; and breast | ||||||
13 | milk storage bags. | ||||||
14 | "Breast pump collection and storage supplies" does not | ||||||
15 | include: (1) bottles and bottle caps not specific to the | ||||||
16 | operation of the breast pump; (2) breast pump travel bags | ||||||
17 | and other similar carrying accessories, including ice | ||||||
18 | packs, labels, and other similar products; (3) breast pump | ||||||
19 | cleaning supplies; (4) nursing bras, bra pads, breast | ||||||
20 | shells, and other similar products; and (5) creams, | ||||||
21 | ointments, and other similar products that relieve | ||||||
22 | breastfeeding-related symptoms or conditions of the | ||||||
23 | breasts or nipples, unless sold as part of a breast pump | ||||||
24 | kit that is pre-packaged by the breast pump manufacturer | ||||||
25 | or distributor. | ||||||
26 | "Breast pump kit" means a kit that: (1) contains no |
| |||||||
| |||||||
1 | more than a breast pump, breast pump collection and | ||||||
2 | storage supplies, a rechargeable battery for operating the | ||||||
3 | breast pump, a breastmilk cooler, bottle stands, ice | ||||||
4 | packs, and a breast pump carrying case; and (2) is | ||||||
5 | pre-packaged as a breast pump kit by the breast pump | ||||||
6 | manufacturer or distributor. | ||||||
7 | (33) (32) Tangible personal property sold by or on behalf | ||||||
8 | of the State Treasurer pursuant to the Revised Uniform | ||||||
9 | Unclaimed Property Act. This item (33) (32) is exempt from the | ||||||
10 | provisions of Section 3-75. | ||||||
11 | (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; | ||||||
12 | 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article | ||||||
13 | 70, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section | ||||||
14 | 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
| ||||||
15 | Section 15-15. The Service Occupation Tax Act is amended | ||||||
16 | by changing Section 3-5 as follows:
| ||||||
17 | (35 ILCS 115/3-5)
| ||||||
18 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
19 | property is
exempt from the tax imposed by this Act:
| ||||||
20 | (1) Personal property sold by a corporation, society, | ||||||
21 | association,
foundation, institution, or organization, other | ||||||
22 | than a limited liability
company, that is organized and | ||||||
23 | operated as a not-for-profit service enterprise
for the | ||||||
24 | benefit of persons 65 years of age or older if the personal |
| |||||||
| |||||||
1 | property
was not purchased by the enterprise for the purpose | ||||||
2 | of resale by the
enterprise.
| ||||||
3 | (2) Personal property purchased by a not-for-profit | ||||||
4 | Illinois county fair
association for use in conducting, | ||||||
5 | operating, or promoting the county fair.
| ||||||
6 | (3) Personal property purchased by any not-for-profit
arts | ||||||
7 | or cultural organization that establishes, by proof required | ||||||
8 | by the
Department by
rule, that it has received an exemption | ||||||
9 | under Section 501(c)(3) of the
Internal Revenue Code and that | ||||||
10 | is organized and operated primarily for the
presentation
or | ||||||
11 | support of arts or cultural programming, activities, or | ||||||
12 | services. These
organizations include, but are not limited to, | ||||||
13 | music and dramatic arts
organizations such as symphony | ||||||
14 | orchestras and theatrical groups, arts and
cultural service | ||||||
15 | organizations, local arts councils, visual arts organizations,
| ||||||
16 | and media arts organizations.
On and after July 1, 2001 (the | ||||||
17 | effective date of Public Act 92-35), however, an entity | ||||||
18 | otherwise eligible for this exemption shall not
make tax-free | ||||||
19 | purchases unless it has an active identification number issued | ||||||
20 | by
the Department.
| ||||||
21 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
22 | coinage
issued by the State of Illinois, the government of the | ||||||
23 | United States of
America, or the government of any foreign | ||||||
24 | country, and bullion.
| ||||||
25 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
26 | 2004 through August 30, 2014, graphic arts machinery and |
| |||||||
| |||||||
1 | equipment, including
repair and
replacement parts, both new | ||||||
2 | and used, and including that manufactured on
special order or | ||||||
3 | purchased for lease, certified by the purchaser to be used
| ||||||
4 | primarily for graphic arts production.
Equipment includes | ||||||
5 | chemicals or chemicals acting as catalysts but only if
the
| ||||||
6 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
7 | immediate change
upon a graphic arts product. Beginning on | ||||||
8 | July 1, 2017, graphic arts machinery and equipment is included | ||||||
9 | in the manufacturing and assembling machinery and equipment | ||||||
10 | exemption under Section 2 of this Act.
| ||||||
11 | (6) Personal property sold by a teacher-sponsored student | ||||||
12 | organization
affiliated with an elementary or secondary school | ||||||
13 | located in Illinois.
| ||||||
14 | (7) Farm machinery and equipment, both new and used, | ||||||
15 | including that
manufactured on special order, certified by the | ||||||
16 | purchaser to be used
primarily for production agriculture or | ||||||
17 | State or federal agricultural
programs, including individual | ||||||
18 | replacement parts for the machinery and
equipment, including | ||||||
19 | machinery and equipment purchased for lease,
and including | ||||||
20 | implements of husbandry defined in Section 1-130 of
the | ||||||
21 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
22 | chemical and
fertilizer spreaders, and nurse wagons required | ||||||
23 | to be registered
under Section 3-809 of the Illinois Vehicle | ||||||
24 | Code,
but
excluding other motor vehicles required to be | ||||||
25 | registered under the Illinois
Vehicle
Code.
Horticultural | ||||||
26 | polyhouses or hoop houses used for propagating, growing, or
|
| |||||||
| |||||||
1 | overwintering plants shall be considered farm machinery and | ||||||
2 | equipment under
this item (7).
Agricultural chemical tender | ||||||
3 | tanks and dry boxes shall include units sold
separately from a | ||||||
4 | motor vehicle required to be licensed and units sold mounted
| ||||||
5 | on a motor vehicle required to be licensed if the selling price | ||||||
6 | of the tender
is separately stated.
| ||||||
7 | Farm machinery and equipment shall include precision | ||||||
8 | farming equipment
that is
installed or purchased to be | ||||||
9 | installed on farm machinery and equipment
including, but not | ||||||
10 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
11 | or spreaders.
Precision farming equipment includes, but is not | ||||||
12 | limited to,
soil testing sensors, computers, monitors, | ||||||
13 | software, global positioning
and mapping systems, and other | ||||||
14 | such equipment.
| ||||||
15 | Farm machinery and equipment also includes computers, | ||||||
16 | sensors, software, and
related equipment used primarily in the
| ||||||
17 | computer-assisted operation of production agriculture | ||||||
18 | facilities, equipment,
and activities such as, but
not limited | ||||||
19 | to,
the collection, monitoring, and correlation of
animal and | ||||||
20 | crop data for the purpose of
formulating animal diets and | ||||||
21 | agricultural chemicals. | ||||||
22 | Beginning on January 1, 2024, farm machinery and equipment | ||||||
23 | also includes electrical power generation equipment used | ||||||
24 | primarily for production agriculture. | ||||||
25 | This item (7) is exempt
from the provisions of
Section | ||||||
26 | 3-55.
|
| |||||||
| |||||||
1 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
2 | to or used by an air common
carrier, certified by the carrier | ||||||
3 | to be used for consumption, shipment,
or storage in the | ||||||
4 | conduct of its business as an air common carrier, for
a flight | ||||||
5 | destined for or returning from a location or locations
outside | ||||||
6 | the United States without regard to previous or subsequent | ||||||
7 | domestic
stopovers.
| ||||||
8 | Beginning July 1, 2013, fuel and petroleum products sold | ||||||
9 | to or used by an air carrier, certified by the carrier to be | ||||||
10 | used for consumption, shipment, or storage in the conduct of | ||||||
11 | its business as an air common carrier, for a flight that (i) is | ||||||
12 | engaged in foreign trade or is engaged in trade between the | ||||||
13 | United States and any of its possessions and (ii) transports | ||||||
14 | at least one individual or package for hire from the city of | ||||||
15 | origination to the city of final destination on the same | ||||||
16 | aircraft, without regard to a change in the flight number of | ||||||
17 | that aircraft. | ||||||
18 | (9) Proceeds of mandatory service charges separately
| ||||||
19 | stated on customers' bills for the purchase and consumption of | ||||||
20 | food and
beverages, to the extent that the proceeds of the | ||||||
21 | service charge are in fact
turned over as tips or as a | ||||||
22 | substitute for tips to the employees who
participate directly | ||||||
23 | in preparing, serving, hosting or cleaning up the
food or | ||||||
24 | beverage function with respect to which the service charge is | ||||||
25 | imposed.
| ||||||
26 | (10) Until July 1, 2003, oil field exploration, drilling, |
| |||||||
| |||||||
1 | and production
equipment,
including (i) rigs and parts of | ||||||
2 | rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) | ||||||
3 | pipe and tubular goods, including casing and
drill strings, | ||||||
4 | (iii) pumps and pump-jack units, (iv) storage tanks and flow
| ||||||
5 | lines, (v) any individual replacement part for oil field | ||||||
6 | exploration,
drilling, and production equipment, and (vi) | ||||||
7 | machinery and equipment purchased
for lease; but
excluding | ||||||
8 | motor vehicles required to be registered under the Illinois
| ||||||
9 | Vehicle Code.
| ||||||
10 | (11) Photoprocessing machinery and equipment, including | ||||||
11 | repair and
replacement parts, both new and used, including | ||||||
12 | that manufactured on
special order, certified by the purchaser | ||||||
13 | to be used primarily for
photoprocessing, and including | ||||||
14 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
15 | (12) Until July 1, 2028, coal and aggregate exploration, | ||||||
16 | mining, off-highway hauling,
processing,
maintenance, and | ||||||
17 | reclamation equipment, including
replacement parts and | ||||||
18 | equipment, and including
equipment
purchased for lease, but | ||||||
19 | excluding motor vehicles required to be registered
under the | ||||||
20 | Illinois Vehicle Code. The changes made to this Section by | ||||||
21 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
22 | for credit or refund is allowed on or after August 16, 2013 | ||||||
23 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
24 | during the period beginning July 1, 2003 and ending on August | ||||||
25 | 16, 2013 (the effective date of Public Act 98-456).
| ||||||
26 | (13) Beginning January 1, 1992 and through June 30, 2016, |
| |||||||
| |||||||
1 | food for human consumption that is to be consumed off the | ||||||
2 | premises
where it is sold (other than alcoholic beverages, | ||||||
3 | soft drinks and food that
has been prepared for immediate | ||||||
4 | consumption) and prescription and
non-prescription medicines, | ||||||
5 | drugs, medical appliances, and insulin, urine
testing | ||||||
6 | materials, syringes, and needles used by diabetics, for human | ||||||
7 | use,
when purchased for use by a person receiving medical | ||||||
8 | assistance under
Article V of the Illinois Public Aid Code who | ||||||
9 | resides in a licensed
long-term care facility, as defined in | ||||||
10 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
11 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
12 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
13 | (14) Semen used for artificial insemination of livestock | ||||||
14 | for direct
agricultural production.
| ||||||
15 | (15) Horses, or interests in horses, registered with and | ||||||
16 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
17 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
18 | Horse Association, United States
Trotting Association, or | ||||||
19 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
20 | racing for prizes. This item (15) is exempt from the | ||||||
21 | provisions of Section 3-55, and the exemption provided for | ||||||
22 | under this item (15) applies for all periods beginning May 30, | ||||||
23 | 1995, but no claim for credit or refund is allowed on or after | ||||||
24 | January 1, 2008 (the effective date of Public Act 95-88)
for | ||||||
25 | such taxes paid during the period beginning May 30, 2000 and | ||||||
26 | ending on January 1, 2008 (the effective date of Public Act |
| |||||||
| |||||||
1 | 95-88).
| ||||||
2 | (16) Computers and communications equipment utilized for | ||||||
3 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
4 | analysis, or treatment of hospital patients sold to a lessor | ||||||
5 | who leases the
equipment, under a lease of one year or longer | ||||||
6 | executed or in effect at the
time of the purchase, to a
| ||||||
7 | hospital
that has been issued an active tax exemption | ||||||
8 | identification number by the
Department under Section 1g of | ||||||
9 | the Retailers' Occupation Tax Act.
| ||||||
10 | (17) Personal property sold to a lessor who leases the
| ||||||
11 | property, under a
lease of one year or longer executed or in | ||||||
12 | effect at the time of the purchase,
to a governmental body
that | ||||||
13 | has been issued an active tax exemption identification number | ||||||
14 | by the
Department under Section 1g of the Retailers' | ||||||
15 | Occupation Tax Act.
| ||||||
16 | (18) Beginning with taxable years ending on or after | ||||||
17 | December
31, 1995
and
ending with taxable years ending on or | ||||||
18 | before December 31, 2004,
personal property that is
donated | ||||||
19 | for disaster relief to be used in a State or federally declared
| ||||||
20 | disaster area in Illinois or bordering Illinois by a | ||||||
21 | manufacturer or retailer
that is registered in this State to a | ||||||
22 | corporation, society, association,
foundation, or institution | ||||||
23 | that has been issued a sales tax exemption
identification | ||||||
24 | number by the Department that assists victims of the disaster
| ||||||
25 | who reside within the declared disaster area.
| ||||||
26 | (19) Beginning with taxable years ending on or after |
| |||||||
| |||||||
1 | December
31, 1995 and
ending with taxable years ending on or | ||||||
2 | before December 31, 2004, personal
property that is used in | ||||||
3 | the performance of infrastructure repairs in this
State, | ||||||
4 | including but not limited to municipal roads and streets, | ||||||
5 | access roads,
bridges, sidewalks, waste disposal systems, | ||||||
6 | water and sewer line extensions,
water distribution and | ||||||
7 | purification facilities, storm water drainage and
retention | ||||||
8 | facilities, and sewage treatment facilities, resulting from a | ||||||
9 | State
or federally declared disaster in Illinois or bordering | ||||||
10 | Illinois when such
repairs are initiated on facilities located | ||||||
11 | in the declared disaster area
within 6 months after the | ||||||
12 | disaster.
| ||||||
13 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
14 | "game breeding
and
hunting preserve area" as that term is used
| ||||||
15 | in the
Wildlife Code. This paragraph is exempt from the | ||||||
16 | provisions
of
Section 3-55.
| ||||||
17 | (21) A motor vehicle, as that term is defined in Section | ||||||
18 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
19 | corporation, limited liability
company, society, association, | ||||||
20 | foundation, or institution that is determined by
the | ||||||
21 | Department to be organized and operated exclusively for | ||||||
22 | educational
purposes. For purposes of this exemption, "a | ||||||
23 | corporation, limited liability
company, society, association, | ||||||
24 | foundation, or institution organized and
operated
exclusively | ||||||
25 | for educational purposes" means all tax-supported public | ||||||
26 | schools,
private schools that offer systematic instruction in |
| |||||||
| |||||||
1 | useful branches of
learning by methods common to public | ||||||
2 | schools and that compare favorably in
their scope and | ||||||
3 | intensity with the course of study presented in tax-supported
| ||||||
4 | schools, and vocational or technical schools or institutes | ||||||
5 | organized and
operated exclusively to provide a course of | ||||||
6 | study of not less than 6 weeks
duration and designed to prepare | ||||||
7 | individuals to follow a trade or to pursue a
manual, | ||||||
8 | technical, mechanical, industrial, business, or commercial
| ||||||
9 | occupation.
| ||||||
10 | (22) Beginning January 1, 2000, personal property, | ||||||
11 | including
food,
purchased through fundraising
events for the | ||||||
12 | benefit of
a public or private elementary or
secondary school, | ||||||
13 | a group of those schools, or one or more school
districts if | ||||||
14 | the events are
sponsored by an entity recognized by the school | ||||||
15 | district that consists
primarily of volunteers and includes
| ||||||
16 | parents and teachers of the school children. This paragraph | ||||||
17 | does not apply
to fundraising
events (i) for the benefit of | ||||||
18 | private home instruction or (ii)
for which the fundraising | ||||||
19 | entity purchases the personal property sold at
the events from | ||||||
20 | another individual or entity that sold the property for the
| ||||||
21 | purpose of resale by the fundraising entity and that
profits | ||||||
22 | from the sale to the
fundraising entity. This paragraph is | ||||||
23 | exempt
from the provisions
of Section 3-55.
| ||||||
24 | (23) Beginning January 1, 2000
and through December 31, | ||||||
25 | 2001, new or used automatic vending
machines that prepare and | ||||||
26 | serve hot food and beverages, including coffee, soup,
and
|
| |||||||
| |||||||
1 | other items, and replacement parts for these machines.
| ||||||
2 | Beginning January 1,
2002 and through June 30, 2003, machines | ||||||
3 | and parts for
machines used in commercial, coin-operated | ||||||
4 | amusement
and vending business if a use or occupation tax is | ||||||
5 | paid on the gross receipts
derived from
the use of the | ||||||
6 | commercial, coin-operated amusement and vending machines.
This | ||||||
7 | paragraph is exempt from the provisions of Section 3-55.
| ||||||
8 | (24) Beginning
on August 2, 2001 (the effective date of | ||||||
9 | Public Act 92-227),
computers and communications equipment
| ||||||
10 | utilized for any hospital purpose and equipment used in the | ||||||
11 | diagnosis,
analysis, or treatment of hospital patients sold to | ||||||
12 | a lessor who leases the
equipment, under a lease of one year or | ||||||
13 | longer executed or in effect at the
time of the purchase, to a | ||||||
14 | hospital that has been issued an active tax
exemption | ||||||
15 | identification number by the Department under Section 1g of | ||||||
16 | the
Retailers' Occupation Tax Act. This paragraph is exempt | ||||||
17 | from the provisions of
Section 3-55.
| ||||||
18 | (25) Beginning
on August 2, 2001 (the effective date of | ||||||
19 | Public Act 92-227),
personal property sold to a lessor who
| ||||||
20 | leases the property, under a lease of one year or longer | ||||||
21 | executed or in effect
at the time of the purchase, to a | ||||||
22 | governmental body that has been issued an
active tax exemption | ||||||
23 | identification number by the Department under Section 1g
of | ||||||
24 | the Retailers' Occupation Tax Act. This paragraph is exempt | ||||||
25 | from the
provisions of Section 3-55.
| ||||||
26 | (26) Beginning on January 1, 2002 and through June 30, |
| |||||||
| |||||||
1 | 2016, tangible personal property
purchased
from an Illinois | ||||||
2 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
3 | activities in Illinois who will, upon receipt of the property | ||||||
4 | in Illinois,
temporarily store the property in Illinois (i) | ||||||
5 | for the purpose of subsequently
transporting it outside this | ||||||
6 | State for use or consumption thereafter solely
outside this | ||||||
7 | State or (ii) for the purpose of being processed, fabricated, | ||||||
8 | or
manufactured into, attached to, or incorporated into other | ||||||
9 | tangible personal
property to be transported outside this | ||||||
10 | State and thereafter used or consumed
solely outside this | ||||||
11 | State. The Director of Revenue shall, pursuant to rules
| ||||||
12 | adopted in accordance with the Illinois Administrative | ||||||
13 | Procedure Act, issue a
permit to any taxpayer in good standing | ||||||
14 | with the Department who is eligible for
the exemption under | ||||||
15 | this paragraph (26). The permit issued under
this paragraph | ||||||
16 | (26) shall authorize the holder, to the extent and
in the | ||||||
17 | manner specified in the rules adopted under this Act, to | ||||||
18 | purchase
tangible personal property from a retailer exempt | ||||||
19 | from the taxes imposed by
this Act. Taxpayers shall maintain | ||||||
20 | all necessary books and records to
substantiate the use and | ||||||
21 | consumption of all such tangible personal property
outside of | ||||||
22 | the State of Illinois.
| ||||||
23 | (27) Beginning January 1, 2008, tangible personal property | ||||||
24 | used in the construction or maintenance of a community water | ||||||
25 | supply, as defined under Section 3.145 of the Environmental | ||||||
26 | Protection Act, that is operated by a not-for-profit |
| |||||||
| |||||||
1 | corporation that holds a valid water supply permit issued | ||||||
2 | under Title IV of the Environmental Protection Act. This | ||||||
3 | paragraph is exempt from the provisions of Section 3-55.
| ||||||
4 | (28) Tangible personal property sold to a | ||||||
5 | public-facilities corporation, as described in Section | ||||||
6 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
7 | constructing or furnishing a municipal convention hall, but | ||||||
8 | only if the legal title to the municipal convention hall is | ||||||
9 | transferred to the municipality without any further | ||||||
10 | consideration by or on behalf of the municipality at the time | ||||||
11 | of the completion of the municipal convention hall or upon the | ||||||
12 | retirement or redemption of any bonds or other debt | ||||||
13 | instruments issued by the public-facilities corporation in | ||||||
14 | connection with the development of the municipal convention | ||||||
15 | hall. This exemption includes existing public-facilities | ||||||
16 | corporations as provided in Section 11-65-25 of the Illinois | ||||||
17 | Municipal Code. This paragraph is exempt from the provisions | ||||||
18 | of Section 3-55. | ||||||
19 | (29) Beginning January 1, 2010 and continuing through | ||||||
20 | December 31, 2024, materials, parts, equipment, components, | ||||||
21 | and furnishings incorporated into or upon an aircraft as part | ||||||
22 | of the modification, refurbishment, completion, replacement, | ||||||
23 | repair, or maintenance of the aircraft. This exemption | ||||||
24 | includes consumable supplies used in the modification, | ||||||
25 | refurbishment, completion, replacement, repair, and | ||||||
26 | maintenance of aircraft, but excludes any materials, parts, |
| |||||||
| |||||||
1 | equipment, components, and consumable supplies used in the | ||||||
2 | modification, replacement, repair, and maintenance of aircraft | ||||||
3 | engines or power plants, whether such engines or power plants | ||||||
4 | are installed or uninstalled upon any such aircraft. | ||||||
5 | "Consumable supplies" include, but are not limited to, | ||||||
6 | adhesive, tape, sandpaper, general purpose lubricants, | ||||||
7 | cleaning solution, latex gloves, and protective films. This | ||||||
8 | exemption applies only to the transfer of qualifying tangible | ||||||
9 | personal property incident to the modification, refurbishment, | ||||||
10 | completion, replacement, repair, or maintenance of an aircraft | ||||||
11 | by persons who (i) hold an Air Agency Certificate and are | ||||||
12 | empowered to operate an approved repair station by the Federal | ||||||
13 | Aviation Administration, (ii) have a Class IV Rating, and | ||||||
14 | (iii) conduct operations in accordance with Part 145 of the | ||||||
15 | Federal Aviation Regulations. The exemption does not include | ||||||
16 | aircraft operated by a commercial air carrier providing | ||||||
17 | scheduled passenger air service pursuant to authority issued | ||||||
18 | under Part 121 or Part 129 of the Federal Aviation | ||||||
19 | Regulations. The changes made to this paragraph (29) by Public | ||||||
20 | Act 98-534 are declarative of existing law. It is the intent of | ||||||
21 | the General Assembly that the exemption under this paragraph | ||||||
22 | (29) applies continuously from January 1, 2010 through | ||||||
23 | December 31, 2024; however, no claim for credit or refund is | ||||||
24 | allowed for taxes paid as a result of the disallowance of this | ||||||
25 | exemption on or after January 1, 2015 and prior to February 5, | ||||||
26 | 2020 ( the effective date of Public Act 101-629) this |
| |||||||
| |||||||
1 | amendatory Act of the 101st General Assembly . | ||||||
2 | (30) Beginning January 1, 2017 and through December 31, | ||||||
3 | 2026, menstrual pads, tampons, and menstrual cups. | ||||||
4 | (31) Tangible personal property transferred to a purchaser | ||||||
5 | who is exempt from tax by operation of federal law. This | ||||||
6 | paragraph is exempt from the provisions of Section 3-55. | ||||||
7 | (32) Qualified tangible personal property used in the | ||||||
8 | construction or operation of a data center that has been | ||||||
9 | granted a certificate of exemption by the Department of | ||||||
10 | Commerce and Economic Opportunity, whether that tangible | ||||||
11 | personal property is purchased by the owner, operator, or | ||||||
12 | tenant of the data center or by a contractor or subcontractor | ||||||
13 | of the owner, operator, or tenant. Data centers that would | ||||||
14 | have qualified for a certificate of exemption prior to January | ||||||
15 | 1, 2020 had Public Act 101-31 this amendatory Act of the 101st | ||||||
16 | General Assembly been in effect, may apply for and obtain an | ||||||
17 | exemption for subsequent purchases of computer equipment or | ||||||
18 | enabling software purchased or leased to upgrade, supplement, | ||||||
19 | or replace computer equipment or enabling software purchased | ||||||
20 | or leased in the original investment that would have | ||||||
21 | qualified. | ||||||
22 | The Department of Commerce and Economic Opportunity shall | ||||||
23 | grant a certificate of exemption under this item (32) to | ||||||
24 | qualified data centers as defined by Section 605-1025 of the | ||||||
25 | Department of Commerce and Economic Opportunity Law of the
| ||||||
26 | Civil Administrative Code of Illinois. |
| |||||||
| |||||||
1 | For the purposes of this item (32): | ||||||
2 | "Data center" means a building or a series of | ||||||
3 | buildings rehabilitated or constructed to house working | ||||||
4 | servers in one physical location or multiple sites within | ||||||
5 | the State of Illinois. | ||||||
6 | "Qualified tangible personal property" means: | ||||||
7 | electrical systems and equipment; climate control and | ||||||
8 | chilling equipment and systems; mechanical systems and | ||||||
9 | equipment; monitoring and secure systems; emergency | ||||||
10 | generators; hardware; computers; servers; data storage | ||||||
11 | devices; network connectivity equipment; racks; cabinets; | ||||||
12 | telecommunications cabling infrastructure; raised floor | ||||||
13 | systems; peripheral components or systems; software; | ||||||
14 | mechanical, electrical, or plumbing systems; battery | ||||||
15 | systems; cooling systems and towers; temperature control | ||||||
16 | systems; other cabling; and other data center | ||||||
17 | infrastructure equipment and systems necessary to operate | ||||||
18 | qualified tangible personal property, including fixtures; | ||||||
19 | and component parts of any of the foregoing, including | ||||||
20 | installation, maintenance, repair, refurbishment, and | ||||||
21 | replacement of qualified tangible personal property to | ||||||
22 | generate, transform, transmit, distribute, or manage | ||||||
23 | electricity necessary to operate qualified tangible | ||||||
24 | personal property; and all other tangible personal | ||||||
25 | property that is essential to the operations of a computer | ||||||
26 | data center. The term "qualified tangible personal |
| |||||||
| |||||||
1 | property" also includes building materials physically | ||||||
2 | incorporated in to the qualifying data center. To document | ||||||
3 | the exemption allowed under this Section, the retailer | ||||||
4 | must obtain from the purchaser a copy of the certificate | ||||||
5 | of eligibility issued by the Department of Commerce and | ||||||
6 | Economic Opportunity. | ||||||
7 | This item (32) is exempt from the provisions of Section | ||||||
8 | 3-55. | ||||||
9 | (33) Beginning July 1, 2022, breast pumps, breast pump | ||||||
10 | collection and storage supplies, and breast pump kits. This | ||||||
11 | item (33) is exempt from the provisions of Section 3-55. As | ||||||
12 | used in this item (33): | ||||||
13 | "Breast pump" means an electrically controlled or | ||||||
14 | manually controlled pump device designed or marketed to be | ||||||
15 | used to express milk from a human breast during lactation, | ||||||
16 | including the pump device and any battery, AC adapter, or | ||||||
17 | other power supply unit that is used to power the pump | ||||||
18 | device and is packaged and sold with the pump device at the | ||||||
19 | time of sale. | ||||||
20 | "Breast pump collection and storage supplies" means | ||||||
21 | items of tangible personal property designed or marketed | ||||||
22 | to be used in conjunction with a breast pump to collect | ||||||
23 | milk expressed from a human breast and to store collected | ||||||
24 | milk until it is ready for consumption. | ||||||
25 | "Breast pump collection and storage supplies" | ||||||
26 | includes, but is not limited to: breast shields and breast |
| |||||||
| |||||||
1 | shield connectors; breast pump tubes and tubing adapters; | ||||||
2 | breast pump valves and membranes; backflow protectors and | ||||||
3 | backflow protector adaptors; bottles and bottle caps | ||||||
4 | specific to the operation of the breast pump; and breast | ||||||
5 | milk storage bags. | ||||||
6 | "Breast pump collection and storage supplies" does not | ||||||
7 | include: (1) bottles and bottle caps not specific to the | ||||||
8 | operation of the breast pump; (2) breast pump travel bags | ||||||
9 | and other similar carrying accessories, including ice | ||||||
10 | packs, labels, and other similar products; (3) breast pump | ||||||
11 | cleaning supplies; (4) nursing bras, bra pads, breast | ||||||
12 | shells, and other similar products; and (5) creams, | ||||||
13 | ointments, and other similar products that relieve | ||||||
14 | breastfeeding-related symptoms or conditions of the | ||||||
15 | breasts or nipples, unless sold as part of a breast pump | ||||||
16 | kit that is pre-packaged by the breast pump manufacturer | ||||||
17 | or distributor. | ||||||
18 | "Breast pump kit" means a kit that: (1) contains no | ||||||
19 | more than a breast pump, breast pump collection and | ||||||
20 | storage supplies, a rechargeable battery for operating the | ||||||
21 | breast pump, a breastmilk cooler, bottle stands, ice | ||||||
22 | packs, and a breast pump carrying case; and (2) is | ||||||
23 | pre-packaged as a breast pump kit by the breast pump | ||||||
24 | manufacturer or distributor. | ||||||
25 | (34) (33) Tangible personal property sold by or on behalf | ||||||
26 | of the State Treasurer pursuant to the Revised Uniform |
| |||||||
| |||||||
1 | Unclaimed Property Act. This item (34) (33) is exempt from the | ||||||
2 | provisions of Section 3-55. | ||||||
3 | (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; | ||||||
4 | 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article | ||||||
5 | 70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section | ||||||
6 | 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
| ||||||
7 | Section 15-20. The Retailers' Occupation Tax Act is | ||||||
8 | amended by changing Section 2-5 as follows:
| ||||||
9 | (35 ILCS 120/2-5)
| ||||||
10 | Sec. 2-5. Exemptions. Gross receipts from proceeds from | ||||||
11 | the sale of
the following tangible personal property are | ||||||
12 | exempt from the tax imposed
by this Act:
| ||||||
13 | (1) Farm chemicals.
| ||||||
14 | (2) Farm machinery and equipment, both new and used, | ||||||
15 | including that
manufactured on special order, certified by | ||||||
16 | the purchaser to be used
primarily for production | ||||||
17 | agriculture or State or federal agricultural
programs, | ||||||
18 | including individual replacement parts for the machinery | ||||||
19 | and
equipment, including machinery and equipment purchased | ||||||
20 | for lease,
and including implements of husbandry defined | ||||||
21 | in Section 1-130 of
the Illinois Vehicle Code, farm | ||||||
22 | machinery and agricultural chemical and
fertilizer | ||||||
23 | spreaders, and nurse wagons required to be registered
| ||||||
24 | under Section 3-809 of the Illinois Vehicle Code,
but
|
| |||||||
| |||||||
1 | excluding other motor vehicles required to be registered | ||||||
2 | under the Illinois
Vehicle Code.
Horticultural polyhouses | ||||||
3 | or hoop houses used for propagating, growing, or
| ||||||
4 | overwintering plants shall be considered farm machinery | ||||||
5 | and equipment under
this item (2).
Agricultural chemical | ||||||
6 | tender tanks and dry boxes shall include units sold
| ||||||
7 | separately from a motor vehicle required to be licensed | ||||||
8 | and units sold mounted
on a motor vehicle required to be | ||||||
9 | licensed, if the selling price of the tender
is separately | ||||||
10 | stated.
| ||||||
11 | Farm machinery and equipment shall include precision | ||||||
12 | farming equipment
that is
installed or purchased to be | ||||||
13 | installed on farm machinery and equipment
including, but | ||||||
14 | not limited to, tractors, harvesters, sprayers, planters,
| ||||||
15 | seeders, or spreaders.
Precision farming equipment | ||||||
16 | includes, but is not limited to,
soil testing sensors, | ||||||
17 | computers, monitors, software, global positioning
and | ||||||
18 | mapping systems, and other such equipment.
| ||||||
19 | Farm machinery and equipment also includes computers, | ||||||
20 | sensors, software, and
related equipment used primarily in | ||||||
21 | the
computer-assisted operation of production agriculture | ||||||
22 | facilities, equipment,
and activities such as, but
not | ||||||
23 | limited to,
the collection, monitoring, and correlation of
| ||||||
24 | animal and crop data for the purpose of
formulating animal | ||||||
25 | diets and agricultural chemicals. | ||||||
26 | Beginning on January 1, 2024, farm machinery and |
| |||||||
| |||||||
1 | equipment also includes electrical power generation | ||||||
2 | equipment used primarily for production agriculture. | ||||||
3 | This item (2) is exempt
from the provisions of
Section | ||||||
4 | 2-70.
| ||||||
5 | (3) Until July 1, 2003, distillation machinery and | ||||||
6 | equipment, sold as a
unit or kit,
assembled or installed | ||||||
7 | by the retailer, certified by the user to be used
only for | ||||||
8 | the production of ethyl alcohol that will be used for | ||||||
9 | consumption
as motor fuel or as a component of motor fuel | ||||||
10 | for the personal use of the
user, and not subject to sale | ||||||
11 | or resale.
| ||||||
12 | (4) Until July 1, 2003 and beginning again September | ||||||
13 | 1, 2004 through August 30, 2014, graphic arts machinery | ||||||
14 | and equipment, including
repair and
replacement parts, | ||||||
15 | both new and used, and including that manufactured on
| ||||||
16 | special order or purchased for lease, certified by the | ||||||
17 | purchaser to be used
primarily for graphic arts | ||||||
18 | production.
Equipment includes chemicals or
chemicals | ||||||
19 | acting as catalysts but only if
the chemicals or chemicals | ||||||
20 | acting as catalysts effect a direct and immediate
change | ||||||
21 | upon a
graphic arts product. Beginning on July 1, 2017, | ||||||
22 | graphic arts machinery and equipment is included in the | ||||||
23 | manufacturing and assembling machinery and equipment | ||||||
24 | exemption under paragraph (14).
| ||||||
25 | (5) A motor vehicle that is used for automobile | ||||||
26 | renting, as defined in the Automobile Renting Occupation |
| |||||||
| |||||||
1 | and Use Tax Act. This paragraph is exempt from
the | ||||||
2 | provisions of Section 2-70.
| ||||||
3 | (6) Personal property sold by a teacher-sponsored | ||||||
4 | student organization
affiliated with an elementary or | ||||||
5 | secondary school located in Illinois.
| ||||||
6 | (7) Until July 1, 2003, proceeds of that portion of | ||||||
7 | the selling price of
a passenger car the
sale of which is | ||||||
8 | subject to the Replacement Vehicle Tax.
| ||||||
9 | (8) Personal property sold to an Illinois county fair | ||||||
10 | association for
use in conducting, operating, or promoting | ||||||
11 | the county fair.
| ||||||
12 | (9) Personal property sold to a not-for-profit arts
or | ||||||
13 | cultural organization that establishes, by proof required | ||||||
14 | by the Department
by
rule, that it has received an | ||||||
15 | exemption under Section 501(c)(3) of the
Internal Revenue | ||||||
16 | Code and that is organized and operated primarily for the
| ||||||
17 | presentation
or support of arts or cultural programming, | ||||||
18 | activities, or services. These
organizations include, but | ||||||
19 | are not limited to, music and dramatic arts
organizations | ||||||
20 | such as symphony orchestras and theatrical groups, arts | ||||||
21 | and
cultural service organizations, local arts councils, | ||||||
22 | visual arts organizations,
and media arts organizations.
| ||||||
23 | On and after July 1, 2001 (the effective date of Public Act | ||||||
24 | 92-35), however, an entity otherwise eligible for this | ||||||
25 | exemption shall not
make tax-free purchases unless it has | ||||||
26 | an active identification number issued by
the Department.
|
| |||||||
| |||||||
1 | (10) Personal property sold by a corporation, society, | ||||||
2 | association,
foundation, institution, or organization, | ||||||
3 | other than a limited liability
company, that is organized | ||||||
4 | and operated as a not-for-profit service enterprise
for | ||||||
5 | the benefit of persons 65 years of age or older if the | ||||||
6 | personal property
was not purchased by the enterprise for | ||||||
7 | the purpose of resale by the
enterprise.
| ||||||
8 | (11) Personal property sold to a governmental body, to | ||||||
9 | a corporation,
society, association, foundation, or | ||||||
10 | institution organized and operated
exclusively for | ||||||
11 | charitable, religious, or educational purposes, or to a
| ||||||
12 | not-for-profit corporation, society, association, | ||||||
13 | foundation, institution,
or organization that has no | ||||||
14 | compensated officers or employees and that is
organized | ||||||
15 | and operated primarily for the recreation of persons 55 | ||||||
16 | years of
age or older. A limited liability company may | ||||||
17 | qualify for the exemption under
this paragraph only if the | ||||||
18 | limited liability company is organized and operated
| ||||||
19 | exclusively for educational purposes. On and after July 1, | ||||||
20 | 1987, however, no
entity otherwise eligible for this | ||||||
21 | exemption shall make tax-free purchases
unless it has an | ||||||
22 | active identification number issued by the Department.
| ||||||
23 | (12) (Blank).
| ||||||
24 | (12-5) On and after July 1, 2003 and through June 30, | ||||||
25 | 2004, motor vehicles of the second division
with a gross | ||||||
26 | vehicle weight in excess of 8,000 pounds
that
are
subject |
| |||||||
| |||||||
1 | to the commercial distribution fee imposed under Section | ||||||
2 | 3-815.1 of
the Illinois
Vehicle Code. Beginning on July 1, | ||||||
3 | 2004 and through June 30, 2005, the use in this State of | ||||||
4 | motor vehicles of the second division: (i) with a gross | ||||||
5 | vehicle weight rating in excess of 8,000 pounds; (ii) that | ||||||
6 | are subject to the commercial distribution fee imposed | ||||||
7 | under Section 3-815.1 of the Illinois Vehicle Code; and | ||||||
8 | (iii) that are primarily used for commercial purposes. | ||||||
9 | Through June 30, 2005, this
exemption applies to repair | ||||||
10 | and replacement parts added
after the
initial purchase of | ||||||
11 | such a motor vehicle if that motor vehicle is used in a
| ||||||
12 | manner that
would qualify for the rolling stock exemption | ||||||
13 | otherwise provided for in this
Act. For purposes of this | ||||||
14 | paragraph, "used for commercial purposes" means the | ||||||
15 | transportation of persons or property in furtherance of | ||||||
16 | any commercial or industrial enterprise whether for-hire | ||||||
17 | or not.
| ||||||
18 | (13) Proceeds from sales to owners, lessors, or
| ||||||
19 | shippers of
tangible personal property that is utilized by | ||||||
20 | interstate carriers for
hire for use as rolling stock | ||||||
21 | moving in interstate commerce
and equipment operated by a | ||||||
22 | telecommunications provider, licensed as a
common carrier | ||||||
23 | by the Federal Communications Commission, which is
| ||||||
24 | permanently installed in or affixed to aircraft moving in | ||||||
25 | interstate commerce.
| ||||||
26 | (14) Machinery and equipment that will be used by the |
| |||||||
| |||||||
1 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
2 | process of manufacturing or
assembling tangible personal | ||||||
3 | property for wholesale or retail sale or
lease, whether | ||||||
4 | the sale or lease is made directly by the manufacturer or | ||||||
5 | by
some other person, whether the materials used in the | ||||||
6 | process are owned by
the manufacturer or some other | ||||||
7 | person, or whether the sale or lease is made
apart from or | ||||||
8 | as an incident to the seller's engaging in the service
| ||||||
9 | occupation of producing machines, tools, dies, jigs, | ||||||
10 | patterns, gauges, or
other similar items of no commercial | ||||||
11 | value on special order for a particular
purchaser. The | ||||||
12 | exemption provided by this paragraph (14) does not include | ||||||
13 | machinery and equipment used in (i) the generation of | ||||||
14 | electricity for wholesale or retail sale; (ii) the | ||||||
15 | generation or treatment of natural or artificial gas for | ||||||
16 | wholesale or retail sale that is delivered to customers | ||||||
17 | through pipes, pipelines, or mains; or (iii) the treatment | ||||||
18 | of water for wholesale or retail sale that is delivered to | ||||||
19 | customers through pipes, pipelines, or mains. The | ||||||
20 | provisions of Public Act 98-583 are declaratory of | ||||||
21 | existing law as to the meaning and scope of this | ||||||
22 | exemption. Beginning on July 1, 2017, the exemption | ||||||
23 | provided by this paragraph (14) includes, but is not | ||||||
24 | limited to, graphic arts machinery and equipment, as | ||||||
25 | defined in paragraph (4) of this Section.
| ||||||
26 | (15) Proceeds of mandatory service charges separately |
| |||||||
| |||||||
1 | stated on
customers' bills for purchase and consumption of | ||||||
2 | food and beverages, to the
extent that the proceeds of the | ||||||
3 | service charge are in fact turned over as
tips or as a | ||||||
4 | substitute for tips to the employees who participate | ||||||
5 | directly
in preparing, serving, hosting or cleaning up the | ||||||
6 | food or beverage function
with respect to which the | ||||||
7 | service charge is imposed.
| ||||||
8 | (16) Tangible personal property sold to a purchaser if | ||||||
9 | the purchaser is exempt from use tax by operation of | ||||||
10 | federal law. This paragraph is exempt from the provisions | ||||||
11 | of Section 2-70.
| ||||||
12 | (17) Tangible personal property sold to a common | ||||||
13 | carrier by rail or
motor that
receives the physical | ||||||
14 | possession of the property in Illinois and that
transports | ||||||
15 | the property, or shares with another common carrier in the
| ||||||
16 | transportation of the property, out of Illinois on a | ||||||
17 | standard uniform bill
of lading showing the seller of the | ||||||
18 | property as the shipper or consignor of
the property to a | ||||||
19 | destination outside Illinois, for use outside Illinois.
| ||||||
20 | (18) Legal tender, currency, medallions, or gold or | ||||||
21 | silver coinage
issued by the State of Illinois, the | ||||||
22 | government of the United States of
America, or the | ||||||
23 | government of any foreign country, and bullion.
| ||||||
24 | (19) Until July 1, 2003, oil field exploration, | ||||||
25 | drilling, and production
equipment, including
(i) rigs and | ||||||
26 | parts of rigs, rotary rigs, cable tool
rigs, and workover |
| |||||||
| |||||||
1 | rigs, (ii) pipe and tubular goods, including casing and
| ||||||
2 | drill strings, (iii) pumps and pump-jack units, (iv) | ||||||
3 | storage tanks and flow
lines, (v) any individual | ||||||
4 | replacement part for oil field exploration,
drilling, and | ||||||
5 | production equipment, and (vi) machinery and equipment | ||||||
6 | purchased
for lease; but
excluding motor vehicles required | ||||||
7 | to be registered under the Illinois
Vehicle Code.
| ||||||
8 | (20) Photoprocessing machinery and equipment, | ||||||
9 | including repair and
replacement parts, both new and used, | ||||||
10 | including that manufactured on
special order, certified by | ||||||
11 | the purchaser to be used primarily for
photoprocessing, | ||||||
12 | and including photoprocessing machinery and equipment
| ||||||
13 | purchased for lease.
| ||||||
14 | (21) Until July 1, 2028, coal and aggregate | ||||||
15 | exploration, mining, off-highway hauling,
processing,
| ||||||
16 | maintenance, and reclamation equipment, including
| ||||||
17 | replacement parts and equipment, and including
equipment | ||||||
18 | purchased for lease, but excluding motor vehicles required | ||||||
19 | to be
registered under the Illinois Vehicle Code. The | ||||||
20 | changes made to this Section by Public Act 97-767 apply on | ||||||
21 | and after July 1, 2003, but no claim for credit or refund | ||||||
22 | is allowed on or after August 16, 2013 (the effective date | ||||||
23 | of Public Act 98-456)
for such taxes paid during the | ||||||
24 | period beginning July 1, 2003 and ending on August 16, | ||||||
25 | 2013 (the effective date of Public Act 98-456).
| ||||||
26 | (22) Until June 30, 2013, fuel and petroleum products |
| |||||||
| |||||||
1 | sold to or used by an air carrier,
certified by the carrier | ||||||
2 | to be used for consumption, shipment, or storage
in the | ||||||
3 | conduct of its business as an air common carrier, for a | ||||||
4 | flight
destined for or returning from a location or | ||||||
5 | locations
outside the United States without regard to | ||||||
6 | previous or subsequent domestic
stopovers.
| ||||||
7 | Beginning July 1, 2013, fuel and petroleum products | ||||||
8 | sold to or used by an air carrier, certified by the carrier | ||||||
9 | to be used for consumption, shipment, or storage in the | ||||||
10 | conduct of its business as an air common carrier, for a | ||||||
11 | flight that (i) is engaged in foreign trade or is engaged | ||||||
12 | in trade between the United States and any of its | ||||||
13 | possessions and (ii) transports at least one individual or | ||||||
14 | package for hire from the city of origination to the city | ||||||
15 | of final destination on the same aircraft, without regard | ||||||
16 | to a change in the flight number of that aircraft. | ||||||
17 | (23) A transaction in which the purchase order is | ||||||
18 | received by a florist
who is located outside Illinois, but | ||||||
19 | who has a florist located in Illinois
deliver the property | ||||||
20 | to the purchaser or the purchaser's donee in Illinois.
| ||||||
21 | (24) Fuel consumed or used in the operation of ships, | ||||||
22 | barges, or vessels
that are used primarily in or for the | ||||||
23 | transportation of property or the
conveyance of persons | ||||||
24 | for hire on rivers bordering on this State if the
fuel is | ||||||
25 | delivered by the seller to the purchaser's barge, ship, or | ||||||
26 | vessel
while it is afloat upon that bordering river.
|
| |||||||
| |||||||
1 | (25) Except as provided in item (25-5) of this | ||||||
2 | Section, a
motor vehicle sold in this State to a | ||||||
3 | nonresident even though the
motor vehicle is delivered to | ||||||
4 | the nonresident in this State, if the motor
vehicle is not | ||||||
5 | to be titled in this State, and if a drive-away permit
is | ||||||
6 | issued to the motor vehicle as provided in Section 3-603 | ||||||
7 | of the Illinois
Vehicle Code or if the nonresident | ||||||
8 | purchaser has vehicle registration
plates to transfer to | ||||||
9 | the motor vehicle upon returning to his or her home
state. | ||||||
10 | The issuance of the drive-away permit or having
the
| ||||||
11 | out-of-state registration plates to be transferred is | ||||||
12 | prima facie evidence
that the motor vehicle will not be | ||||||
13 | titled in this State.
| ||||||
14 | (25-5) The exemption under item (25) does not apply if | ||||||
15 | the state in which the motor vehicle will be titled does | ||||||
16 | not allow a reciprocal exemption for a motor vehicle sold | ||||||
17 | and delivered in that state to an Illinois resident but | ||||||
18 | titled in Illinois. The tax collected under this Act on | ||||||
19 | the sale of a motor vehicle in this State to a resident of | ||||||
20 | another state that does not allow a reciprocal exemption | ||||||
21 | shall be imposed at a rate equal to the state's rate of tax | ||||||
22 | on taxable property in the state in which the purchaser is | ||||||
23 | a resident, except that the tax shall not exceed the tax | ||||||
24 | that would otherwise be imposed under this Act. At the | ||||||
25 | time of the sale, the purchaser shall execute a statement, | ||||||
26 | signed under penalty of perjury, of his or her intent to |
| |||||||
| |||||||
1 | title the vehicle in the state in which the purchaser is a | ||||||
2 | resident within 30 days after the sale and of the fact of | ||||||
3 | the payment to the State of Illinois of tax in an amount | ||||||
4 | equivalent to the state's rate of tax on taxable property | ||||||
5 | in his or her state of residence and shall submit the | ||||||
6 | statement to the appropriate tax collection agency in his | ||||||
7 | or her state of residence. In addition, the retailer must | ||||||
8 | retain a signed copy of the statement in his or her | ||||||
9 | records. Nothing in this item shall be construed to | ||||||
10 | require the removal of the vehicle from this state | ||||||
11 | following the filing of an intent to title the vehicle in | ||||||
12 | the purchaser's state of residence if the purchaser titles | ||||||
13 | the vehicle in his or her state of residence within 30 days | ||||||
14 | after the date of sale. The tax collected under this Act in | ||||||
15 | accordance with this item (25-5) shall be proportionately | ||||||
16 | distributed as if the tax were collected at the 6.25% | ||||||
17 | general rate imposed under this Act.
| ||||||
18 | (25-7) Beginning on July 1, 2007, no tax is imposed | ||||||
19 | under this Act on the sale of an aircraft, as defined in | ||||||
20 | Section 3 of the Illinois Aeronautics Act, if all of the | ||||||
21 | following conditions are met: | ||||||
22 | (1) the aircraft leaves this State within 15 days | ||||||
23 | after the later of either the issuance of the final | ||||||
24 | billing for the sale of the aircraft, or the | ||||||
25 | authorized approval for return to service, completion | ||||||
26 | of the maintenance record entry, and completion of the |
| |||||||
| |||||||
1 | test flight and ground test for inspection, as | ||||||
2 | required by 14 CFR C.F.R. 91.407; | ||||||
3 | (2) the aircraft is not based or registered in | ||||||
4 | this State after the sale of the aircraft; and | ||||||
5 | (3) the seller retains in his or her books and | ||||||
6 | records and provides to the Department a signed and | ||||||
7 | dated certification from the purchaser, on a form | ||||||
8 | prescribed by the Department, certifying that the | ||||||
9 | requirements of this item (25-7) are met. The | ||||||
10 | certificate must also include the name and address of | ||||||
11 | the purchaser, the address of the location where the | ||||||
12 | aircraft is to be titled or registered, the address of | ||||||
13 | the primary physical location of the aircraft, and | ||||||
14 | other information that the Department may reasonably | ||||||
15 | require. | ||||||
16 | For purposes of this item (25-7): | ||||||
17 | "Based in this State" means hangared, stored, or | ||||||
18 | otherwise used, excluding post-sale customizations as | ||||||
19 | defined in this Section, for 10 or more days in each | ||||||
20 | 12-month period immediately following the date of the sale | ||||||
21 | of the aircraft. | ||||||
22 | "Registered in this State" means an aircraft | ||||||
23 | registered with the Department of Transportation, | ||||||
24 | Aeronautics Division, or titled or registered with the | ||||||
25 | Federal Aviation Administration to an address located in | ||||||
26 | this State. |
| |||||||
| |||||||
1 | This paragraph (25-7) is exempt from the provisions
of
| ||||||
2 | Section 2-70.
| ||||||
3 | (26) Semen used for artificial insemination of | ||||||
4 | livestock for direct
agricultural production.
| ||||||
5 | (27) Horses, or interests in horses, registered with | ||||||
6 | and meeting the
requirements of any of the
Arabian Horse | ||||||
7 | Club Registry of America, Appaloosa Horse Club, American | ||||||
8 | Quarter
Horse Association, United States
Trotting | ||||||
9 | Association, or Jockey Club, as appropriate, used for
| ||||||
10 | purposes of breeding or racing for prizes. This item (27) | ||||||
11 | is exempt from the provisions of Section 2-70, and the | ||||||
12 | exemption provided for under this item (27) applies for | ||||||
13 | all periods beginning May 30, 1995, but no claim for | ||||||
14 | credit or refund is allowed on or after January 1, 2008 | ||||||
15 | (the effective date of Public Act 95-88)
for such taxes | ||||||
16 | paid during the period beginning May 30, 2000 and ending | ||||||
17 | on January 1, 2008 (the effective date of Public Act | ||||||
18 | 95-88).
| ||||||
19 | (28) Computers and communications equipment utilized | ||||||
20 | for any
hospital
purpose
and equipment used in the | ||||||
21 | diagnosis,
analysis, or treatment of hospital patients | ||||||
22 | sold to a lessor who leases the
equipment, under a lease of | ||||||
23 | one year or longer executed or in effect at the
time of the | ||||||
24 | purchase, to a
hospital
that has been issued an active tax | ||||||
25 | exemption identification number by the
Department under | ||||||
26 | Section 1g of this Act.
|
| |||||||
| |||||||
1 | (29) Personal property sold to a lessor who leases the
| ||||||
2 | property, under a
lease of one year or longer executed or | ||||||
3 | in effect at the time of the purchase,
to a governmental | ||||||
4 | body
that has been issued an active tax exemption | ||||||
5 | identification number by the
Department under Section 1g | ||||||
6 | of this Act.
| ||||||
7 | (30) Beginning with taxable years ending on or after | ||||||
8 | December
31, 1995
and
ending with taxable years ending on | ||||||
9 | or before December 31, 2004,
personal property that is
| ||||||
10 | donated for disaster relief to be used in a State or | ||||||
11 | federally declared
disaster area in Illinois or bordering | ||||||
12 | Illinois by a manufacturer or retailer
that is registered | ||||||
13 | in this State to a corporation, society, association,
| ||||||
14 | foundation, or institution that has been issued a sales | ||||||
15 | tax exemption
identification number by the Department that | ||||||
16 | assists victims of the disaster
who reside within the | ||||||
17 | declared disaster area.
| ||||||
18 | (31) Beginning with taxable years ending on or after | ||||||
19 | December
31, 1995 and
ending with taxable years ending on | ||||||
20 | or before December 31, 2004, personal
property that is | ||||||
21 | used in the performance of infrastructure repairs in this
| ||||||
22 | State, including but not limited to municipal roads and | ||||||
23 | streets, access roads,
bridges, sidewalks, waste disposal | ||||||
24 | systems, water and sewer line extensions,
water | ||||||
25 | distribution and purification facilities, storm water | ||||||
26 | drainage and
retention facilities, and sewage treatment |
| |||||||
| |||||||
1 | facilities, resulting from a State
or federally declared | ||||||
2 | disaster in Illinois or bordering Illinois when such
| ||||||
3 | repairs are initiated on facilities located in the | ||||||
4 | declared disaster area
within 6 months after the disaster.
| ||||||
5 | (32) Beginning July 1, 1999, game or game birds sold | ||||||
6 | at a "game breeding
and
hunting preserve area" as that | ||||||
7 | term is used
in the
Wildlife Code. This paragraph is | ||||||
8 | exempt from the provisions
of
Section 2-70.
| ||||||
9 | (33) A motor vehicle, as that term is defined in | ||||||
10 | Section 1-146
of the
Illinois Vehicle Code, that is | ||||||
11 | donated to a corporation, limited liability
company, | ||||||
12 | society, association, foundation, or institution that is | ||||||
13 | determined by
the Department to be organized and operated | ||||||
14 | exclusively for educational
purposes. For purposes of this | ||||||
15 | exemption, "a corporation, limited liability
company, | ||||||
16 | society, association, foundation, or institution organized | ||||||
17 | and
operated
exclusively for educational purposes" means | ||||||
18 | all tax-supported public schools,
private schools that | ||||||
19 | offer systematic instruction in useful branches of
| ||||||
20 | learning by methods common to public schools and that | ||||||
21 | compare favorably in
their scope and intensity with the | ||||||
22 | course of study presented in tax-supported
schools, and | ||||||
23 | vocational or technical schools or institutes organized | ||||||
24 | and
operated exclusively to provide a course of study of | ||||||
25 | not less than 6 weeks
duration and designed to prepare | ||||||
26 | individuals to follow a trade or to pursue a
manual, |
| |||||||
| |||||||
1 | technical, mechanical, industrial, business, or commercial
| ||||||
2 | occupation.
| ||||||
3 | (34) Beginning January 1, 2000, personal property, | ||||||
4 | including food, purchased
through fundraising events for | ||||||
5 | the benefit of a public or private elementary or
secondary | ||||||
6 | school, a group of those schools, or one or more school | ||||||
7 | districts if
the events are sponsored by an entity | ||||||
8 | recognized by the school district that
consists primarily | ||||||
9 | of volunteers and includes parents and teachers of the
| ||||||
10 | school children. This paragraph does not apply to | ||||||
11 | fundraising events (i) for
the benefit of private home | ||||||
12 | instruction or (ii) for which the fundraising
entity | ||||||
13 | purchases the personal property sold at the events from | ||||||
14 | another
individual or entity that sold the property for | ||||||
15 | the purpose of resale by the
fundraising entity and that | ||||||
16 | profits from the sale to the fundraising entity.
This | ||||||
17 | paragraph is exempt from the provisions of Section 2-70.
| ||||||
18 | (35) Beginning January 1, 2000 and through December | ||||||
19 | 31, 2001, new or used
automatic vending machines that | ||||||
20 | prepare and serve hot food and beverages,
including | ||||||
21 | coffee, soup, and other items, and replacement parts for | ||||||
22 | these
machines. Beginning January 1, 2002 and through June | ||||||
23 | 30, 2003, machines
and parts for machines used in
| ||||||
24 | commercial, coin-operated amusement and vending business | ||||||
25 | if a use or occupation
tax is paid on the gross receipts | ||||||
26 | derived from the use of the commercial,
coin-operated |
| |||||||
| |||||||
1 | amusement and vending machines. This paragraph is exempt | ||||||
2 | from
the provisions of Section 2-70.
| ||||||
3 | (35-5) Beginning August 23, 2001 and through June 30, | ||||||
4 | 2016, food for human consumption that is to be consumed | ||||||
5 | off
the premises where it is sold (other than alcoholic | ||||||
6 | beverages, soft drinks,
and food that has been prepared | ||||||
7 | for immediate consumption) and prescription
and | ||||||
8 | nonprescription medicines, drugs, medical appliances, and | ||||||
9 | insulin, urine
testing materials, syringes, and needles | ||||||
10 | used by diabetics, for human use, when
purchased for use | ||||||
11 | by a person receiving medical assistance under Article V | ||||||
12 | of
the Illinois Public Aid Code who resides in a licensed | ||||||
13 | long-term care facility,
as defined in the Nursing Home | ||||||
14 | Care Act, or a licensed facility as defined in the ID/DD | ||||||
15 | Community Care Act, the MC/DD Act, or the Specialized | ||||||
16 | Mental Health Rehabilitation Act of 2013.
| ||||||
17 | (36) Beginning August 2, 2001, computers and | ||||||
18 | communications equipment
utilized for any hospital purpose | ||||||
19 | and equipment used in the diagnosis,
analysis, or | ||||||
20 | treatment of hospital patients sold to a lessor who leases | ||||||
21 | the
equipment, under a lease of one year or longer | ||||||
22 | executed or in effect at the
time of the purchase, to a | ||||||
23 | hospital that has been issued an active tax
exemption | ||||||
24 | identification number by the Department under Section 1g | ||||||
25 | of this Act.
This paragraph is exempt from the provisions | ||||||
26 | of Section 2-70.
|
| |||||||
| |||||||
1 | (37) Beginning August 2, 2001, personal property sold | ||||||
2 | to a lessor who
leases the property, under a lease of one | ||||||
3 | year or longer executed or in effect
at the time of the | ||||||
4 | purchase, to a governmental body that has been issued an
| ||||||
5 | active tax exemption identification number by the | ||||||
6 | Department under Section 1g
of this Act. This paragraph is | ||||||
7 | exempt from the provisions of Section 2-70.
| ||||||
8 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
9 | 2016, tangible personal property purchased
from an | ||||||
10 | Illinois retailer by a taxpayer engaged in centralized | ||||||
11 | purchasing
activities in Illinois who will, upon receipt | ||||||
12 | of the property in Illinois,
temporarily store the | ||||||
13 | property in Illinois (i) for the purpose of subsequently
| ||||||
14 | transporting it outside this State for use or consumption | ||||||
15 | thereafter solely
outside this State or (ii) for the | ||||||
16 | purpose of being processed, fabricated, or
manufactured | ||||||
17 | into, attached to, or incorporated into other tangible | ||||||
18 | personal
property to be transported outside this State and | ||||||
19 | thereafter used or consumed
solely outside this State. The | ||||||
20 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
21 | accordance with the Illinois Administrative Procedure Act, | ||||||
22 | issue a
permit to any taxpayer in good standing with the | ||||||
23 | Department who is eligible for
the exemption under this | ||||||
24 | paragraph (38). The permit issued under
this paragraph | ||||||
25 | (38) shall authorize the holder, to the extent and
in the | ||||||
26 | manner specified in the rules adopted under this Act, to |
| |||||||
| |||||||
1 | purchase
tangible personal property from a retailer exempt | ||||||
2 | from the taxes imposed by
this Act. Taxpayers shall | ||||||
3 | maintain all necessary books and records to
substantiate | ||||||
4 | the use and consumption of all such tangible personal | ||||||
5 | property
outside of the State of Illinois.
| ||||||
6 | (39) Beginning January 1, 2008, tangible personal | ||||||
7 | property used in the construction or maintenance of a | ||||||
8 | community water supply, as defined under Section 3.145 of | ||||||
9 | the Environmental Protection Act, that is operated by a | ||||||
10 | not-for-profit corporation that holds a valid water supply | ||||||
11 | permit issued under Title IV of the Environmental | ||||||
12 | Protection Act. This paragraph is exempt from the | ||||||
13 | provisions of Section 2-70.
| ||||||
14 | (40) Beginning January 1, 2010 and continuing through | ||||||
15 | December 31, 2024, materials, parts, equipment, | ||||||
16 | components, and furnishings incorporated into or upon an | ||||||
17 | aircraft as part of the modification, refurbishment, | ||||||
18 | completion, replacement, repair, or maintenance of the | ||||||
19 | aircraft. This exemption includes consumable supplies used | ||||||
20 | in the modification, refurbishment, completion, | ||||||
21 | replacement, repair, and maintenance of aircraft, but | ||||||
22 | excludes any materials, parts, equipment, components, and | ||||||
23 | consumable supplies used in the modification, replacement, | ||||||
24 | repair, and maintenance of aircraft engines or power | ||||||
25 | plants, whether such engines or power plants are installed | ||||||
26 | or uninstalled upon any such aircraft. "Consumable |
| |||||||
| |||||||
1 | supplies" include, but are not limited to, adhesive, tape, | ||||||
2 | sandpaper, general purpose lubricants, cleaning solution, | ||||||
3 | latex gloves, and protective films. This exemption applies | ||||||
4 | only to the sale of qualifying tangible personal property | ||||||
5 | to persons who modify, refurbish, complete, replace, or | ||||||
6 | maintain an aircraft and who (i) hold an Air Agency | ||||||
7 | Certificate and are empowered to operate an approved | ||||||
8 | repair station by the Federal Aviation Administration, | ||||||
9 | (ii) have a Class IV Rating, and (iii) conduct operations | ||||||
10 | in accordance with Part 145 of the Federal Aviation | ||||||
11 | Regulations. The exemption does not include aircraft | ||||||
12 | operated by a commercial air carrier providing scheduled | ||||||
13 | passenger air service pursuant to authority issued under | ||||||
14 | Part 121 or Part 129 of the Federal Aviation Regulations. | ||||||
15 | The changes made to this paragraph (40) by Public Act | ||||||
16 | 98-534 are declarative of existing law. It is the intent | ||||||
17 | of the General Assembly that the exemption under this | ||||||
18 | paragraph (40) applies continuously from January 1, 2010 | ||||||
19 | through December 31, 2024; however, no claim for credit or | ||||||
20 | refund is allowed for taxes paid as a result of the | ||||||
21 | disallowance of this exemption on or after January 1, 2015 | ||||||
22 | and prior to February 5, 2020 ( the effective date of | ||||||
23 | Public Act 101-629) this amendatory Act of the 101st | ||||||
24 | General Assembly . | ||||||
25 | (41) Tangible personal property sold to a | ||||||
26 | public-facilities corporation, as described in Section |
| |||||||
| |||||||
1 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
2 | constructing or furnishing a municipal convention hall, | ||||||
3 | but only if the legal title to the municipal convention | ||||||
4 | hall is transferred to the municipality without any | ||||||
5 | further consideration by or on behalf of the municipality | ||||||
6 | at the time of the completion of the municipal convention | ||||||
7 | hall or upon the retirement or redemption of any bonds or | ||||||
8 | other debt instruments issued by the public-facilities | ||||||
9 | corporation in connection with the development of the | ||||||
10 | municipal convention hall. This exemption includes | ||||||
11 | existing public-facilities corporations as provided in | ||||||
12 | Section 11-65-25 of the Illinois Municipal Code. This | ||||||
13 | paragraph is exempt from the provisions of Section 2-70. | ||||||
14 | (42) Beginning January 1, 2017 and through December | ||||||
15 | 31, 2026, menstrual pads, tampons, and menstrual cups. | ||||||
16 | (43) Merchandise that is subject to the Rental | ||||||
17 | Purchase Agreement Occupation and Use Tax. The purchaser | ||||||
18 | must certify that the item is purchased to be rented | ||||||
19 | subject to a rental purchase agreement, as defined in the | ||||||
20 | Rental Purchase Agreement Act, and provide proof of | ||||||
21 | registration under the Rental Purchase Agreement | ||||||
22 | Occupation and Use Tax Act. This paragraph is exempt from | ||||||
23 | the provisions of Section 2-70. | ||||||
24 | (44) Qualified tangible personal property used in the | ||||||
25 | construction or operation of a data center that has been | ||||||
26 | granted a certificate of exemption by the Department of |
| |||||||
| |||||||
1 | Commerce and Economic Opportunity, whether that tangible | ||||||
2 | personal property is purchased by the owner, operator, or | ||||||
3 | tenant of the data center or by a contractor or | ||||||
4 | subcontractor of the owner, operator, or tenant. Data | ||||||
5 | centers that would have qualified for a certificate of | ||||||
6 | exemption prior to January 1, 2020 had Public Act 101-31 | ||||||
7 | this amendatory Act of the 101st General Assembly been in | ||||||
8 | effect, may apply for and obtain an exemption for | ||||||
9 | subsequent purchases of computer equipment or enabling | ||||||
10 | software purchased or leased to upgrade, supplement, or | ||||||
11 | replace computer equipment or enabling software purchased | ||||||
12 | or leased in the original investment that would have | ||||||
13 | qualified. | ||||||
14 | The Department of Commerce and Economic Opportunity | ||||||
15 | shall grant a certificate of exemption under this item | ||||||
16 | (44) to qualified data centers as defined by Section | ||||||
17 | 605-1025 of the Department of Commerce and Economic | ||||||
18 | Opportunity Law of the
Civil Administrative Code of | ||||||
19 | Illinois. | ||||||
20 | For the purposes of this item (44): | ||||||
21 | "Data center" means a building or a series of | ||||||
22 | buildings rehabilitated or constructed to house | ||||||
23 | working servers in one physical location or multiple | ||||||
24 | sites within the State of Illinois. | ||||||
25 | "Qualified tangible personal property" means: | ||||||
26 | electrical systems and equipment; climate control and |
| |||||||
| |||||||
1 | chilling equipment and systems; mechanical systems and | ||||||
2 | equipment; monitoring and secure systems; emergency | ||||||
3 | generators; hardware; computers; servers; data storage | ||||||
4 | devices; network connectivity equipment; racks; | ||||||
5 | cabinets; telecommunications cabling infrastructure; | ||||||
6 | raised floor systems; peripheral components or | ||||||
7 | systems; software; mechanical, electrical, or plumbing | ||||||
8 | systems; battery systems; cooling systems and towers; | ||||||
9 | temperature control systems; other cabling; and other | ||||||
10 | data center infrastructure equipment and systems | ||||||
11 | necessary to operate qualified tangible personal | ||||||
12 | property, including fixtures; and component parts of | ||||||
13 | any of the foregoing, including installation, | ||||||
14 | maintenance, repair, refurbishment, and replacement of | ||||||
15 | qualified tangible personal property to generate, | ||||||
16 | transform, transmit, distribute, or manage electricity | ||||||
17 | necessary to operate qualified tangible personal | ||||||
18 | property; and all other tangible personal property | ||||||
19 | that is essential to the operations of a computer data | ||||||
20 | center. The term "qualified tangible personal | ||||||
21 | property" also includes building materials physically | ||||||
22 | incorporated into the qualifying data center. To | ||||||
23 | document the exemption allowed under this Section, the | ||||||
24 | retailer must obtain from the purchaser a copy of the | ||||||
25 | certificate of eligibility issued by the Department of | ||||||
26 | Commerce and Economic Opportunity. |
| |||||||
| |||||||
1 | This item (44) is exempt from the provisions of | ||||||
2 | Section 2-70. | ||||||
3 | (45) Beginning January 1, 2020 and through December | ||||||
4 | 31, 2020, sales of tangible personal property made by a | ||||||
5 | marketplace seller over a marketplace for which tax is due | ||||||
6 | under this Act but for which use tax has been collected and | ||||||
7 | remitted to the Department by a marketplace facilitator | ||||||
8 | under Section 2d of the Use Tax Act are exempt from tax | ||||||
9 | under this Act. A marketplace seller claiming this | ||||||
10 | exemption shall maintain books and records demonstrating | ||||||
11 | that the use tax on such sales has been collected and | ||||||
12 | remitted by a marketplace facilitator. Marketplace sellers | ||||||
13 | that have properly remitted tax under this Act on such | ||||||
14 | sales may file a claim for credit as provided in Section 6 | ||||||
15 | of this Act. No claim is allowed, however, for such taxes | ||||||
16 | for which a credit or refund has been issued to the | ||||||
17 | marketplace facilitator under the Use Tax Act, or for | ||||||
18 | which the marketplace facilitator has filed a claim for | ||||||
19 | credit or refund under the Use Tax Act. | ||||||
20 | (46) Beginning July 1, 2022, breast pumps, breast pump | ||||||
21 | collection and storage supplies, and breast pump kits. | ||||||
22 | This item (46) is exempt from the provisions of Section | ||||||
23 | 2-70. As used in this item (46): | ||||||
24 | "Breast pump" means an electrically controlled or | ||||||
25 | manually controlled pump device designed or marketed to be | ||||||
26 | used to express milk from a human breast during lactation, |
| |||||||
| |||||||
1 | including the pump device and any battery, AC adapter, or | ||||||
2 | other power supply unit that is used to power the pump | ||||||
3 | device and is packaged and sold with the pump device at the | ||||||
4 | time of sale. | ||||||
5 | "Breast pump collection and storage supplies" means | ||||||
6 | items of tangible personal property designed or marketed | ||||||
7 | to be used in conjunction with a breast pump to collect | ||||||
8 | milk expressed from a human breast and to store collected | ||||||
9 | milk until it is ready for consumption. | ||||||
10 | "Breast pump collection and storage supplies" | ||||||
11 | includes, but is not limited to: breast shields and breast | ||||||
12 | shield connectors; breast pump tubes and tubing adapters; | ||||||
13 | breast pump valves and membranes; backflow protectors and | ||||||
14 | backflow protector adaptors; bottles and bottle caps | ||||||
15 | specific to the operation of the breast pump; and breast | ||||||
16 | milk storage bags. | ||||||
17 | "Breast pump collection and storage supplies" does not | ||||||
18 | include: (1) bottles and bottle caps not specific to the | ||||||
19 | operation of the breast pump; (2) breast pump travel bags | ||||||
20 | and other similar carrying accessories, including ice | ||||||
21 | packs, labels, and other similar products; (3) breast pump | ||||||
22 | cleaning supplies; (4) nursing bras, bra pads, breast | ||||||
23 | shells, and other similar products; and (5) creams, | ||||||
24 | ointments, and other similar products that relieve | ||||||
25 | breastfeeding-related symptoms or conditions of the | ||||||
26 | breasts or nipples, unless sold as part of a breast pump |
| |||||||
| |||||||
1 | kit that is pre-packaged by the breast pump manufacturer | ||||||
2 | or distributor. | ||||||
3 | "Breast pump kit" means a kit that: (1) contains no | ||||||
4 | more than a breast pump, breast pump collection and | ||||||
5 | storage supplies, a rechargeable battery for operating the | ||||||
6 | breast pump, a breastmilk cooler, bottle stands, ice | ||||||
7 | packs, and a breast pump carrying case; and (2) is | ||||||
8 | pre-packaged as a breast pump kit by the breast pump | ||||||
9 | manufacturer or distributor. | ||||||
10 | (47) (46) Tangible personal property sold by or on | ||||||
11 | behalf of the State Treasurer pursuant to the Revised | ||||||
12 | Uniform Unclaimed Property Act. This item (47) (46) is | ||||||
13 | exempt from the provisions of Section 2-70. | ||||||
14 | (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; | ||||||
15 | 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff. | ||||||
16 | 8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22; | ||||||
17 | 102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813, | ||||||
18 | eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
| ||||||
19 | ARTICLE 20. PARKING EXCISE TAX | ||||||
20 | Section 20-5. The Parking Excise Tax Act is amended by | ||||||
21 | changing Sections 10-5, 10-10, 10-15, 10-25, 10-30, 10-35, | ||||||
22 | 10-45, and 10-50 as follows: | ||||||
23 | (35 ILCS 525/10-5) |
| |||||||
| |||||||
1 | (Text of Section before amendment by P.A. 102-700 )
| ||||||
2 | Sec. 10-5. Definitions. | ||||||
3 | "Booking intermediary" means any person or entity that | ||||||
4 | facilitates the processing and fulfillment of reservation | ||||||
5 | transactions between an operator and a person or entity | ||||||
6 | desiring parking in a parking lot or garage of that operator. | ||||||
7 | "Charge or fee paid for parking" means the gross amount of | ||||||
8 | consideration for the use or privilege of parking a motor | ||||||
9 | vehicle in or upon any parking lot or garage in the State, | ||||||
10 | collected by an operator and valued in money, whether received | ||||||
11 | in money or otherwise, including cash, credits, property, and | ||||||
12 | services, determined without any deduction for costs or | ||||||
13 | expenses, but not including charges that are added to the | ||||||
14 | charge or fee on account of the tax imposed by this Act or on | ||||||
15 | account of any other tax imposed on the charge or fee. "Charge | ||||||
16 | or fee paid for parking" excludes separately stated charges | ||||||
17 | not for the use or privilege or parking and excludes amounts | ||||||
18 | retained by or paid to a booking intermediary for services | ||||||
19 | provided by the booking intermediary. If any separately stated | ||||||
20 | charge is not optional, it shall be presumed that it is part of | ||||||
21 | the charge for the use or privilege or parking. | ||||||
22 | "Department" means the Department of Revenue. | ||||||
23 | "Operator" means any person who engages in the business of | ||||||
24 | operating a parking area or garage, or who, directly or | ||||||
25 | through an agreement or arrangement with another party, | ||||||
26 | collects the consideration for parking or storage of motor |
| |||||||
| |||||||
1 | vehicles, recreational vehicles, or other self-propelled | ||||||
2 | vehicles, at that parking place. This includes, but is not | ||||||
3 | limited to, any facilitator or aggregator that collects from | ||||||
4 | the purchaser the charge or fee paid for parking. "Operator" | ||||||
5 | does not include a bank, credit card company, payment | ||||||
6 | processor, booking intermediary, or person whose involvement | ||||||
7 | is limited to performing functions that are similar to those | ||||||
8 | performed by a bank, credit card company, payment processor, | ||||||
9 | or booking intermediary. | ||||||
10 | "Parking area or garage" means any real estate, building, | ||||||
11 | structure, premises, enclosure or other place, whether | ||||||
12 | enclosed or not, except a public way, within the State, where | ||||||
13 | motor vehicles, recreational vehicles, or other self-propelled | ||||||
14 | vehicles, are stored, housed or parked for hire, charge, fee | ||||||
15 | or other valuable consideration in a condition ready for use, | ||||||
16 | or where rent or compensation is paid to the owner, manager, | ||||||
17 | operator or lessee of the premises for the housing, storing, | ||||||
18 | sheltering, keeping or maintaining motor vehicles, | ||||||
19 | recreational vehicles, or other self-propelled vehicles. | ||||||
20 | "Parking area or garage" includes any parking area or garage, | ||||||
21 | whether the vehicle is parked by the owner of the vehicle or by | ||||||
22 | the operator or an attendant. | ||||||
23 | "Person" means any natural individual, firm, trust, | ||||||
24 | estate, partnership, association, joint stock company, joint | ||||||
25 | venture, corporation, limited liability company, or a | ||||||
26 | receiver, trustee, guardian, or other representative appointed |
| |||||||
| |||||||
1 | by order of any court. | ||||||
2 | "Purchase price" means the consideration paid for the | ||||||
3 | purchase of a parking space in a parking area or garage, valued | ||||||
4 | in money, whether received in money or otherwise, including | ||||||
5 | cash, gift cards, credits, and property, and shall be | ||||||
6 | determined without any deduction on account of the cost of | ||||||
7 | materials used, labor or service costs, or any other expense | ||||||
8 | whatsoever. | ||||||
9 | "Purchase price" includes any and all charges that the | ||||||
10 | recipient pays related to or incidental to obtaining the use | ||||||
11 | or privilege of using a parking space in a parking area or | ||||||
12 | garage, including but not limited to any and all related | ||||||
13 | markups, service fees, convenience fees, facilitation fees, | ||||||
14 | cancellation fees, overtime fees, or other such charges, | ||||||
15 | regardless of terminology. However, "purchase price" shall not | ||||||
16 | include consideration paid for: | ||||||
17 | (1) optional, separately stated charges not for the | ||||||
18 | use or privilege of using a parking space in the parking | ||||||
19 | area or garage; | ||||||
20 | (2) any charge for a dishonored check; | ||||||
21 | (3) any finance or credit charge, penalty or charge | ||||||
22 | for delayed payment, or discount for prompt payment; | ||||||
23 | (4) any purchase by a purchaser if the operator is | ||||||
24 | prohibited by federal or State Constitution, treaty, | ||||||
25 | convention, statute or court decision from collecting the | ||||||
26 | tax from such purchaser; |
| |||||||
| |||||||
1 | (5) the isolated or occasional sale of parking spaces | ||||||
2 | subject to tax under this Act by a person who does not hold | ||||||
3 | himself out as being engaged (or who does not habitually | ||||||
4 | engage) in selling of parking spaces; and | ||||||
5 | (6) any amounts added to a purchaser's bills because | ||||||
6 | of charges made pursuant to the tax imposed by this Act.
If | ||||||
7 | credit is extended, then the amount thereof shall be | ||||||
8 | included only as and when payments are made. | ||||||
9 | "Purchaser" means any person who acquires a parking space | ||||||
10 | in a parking area or garage for use for valuable | ||||||
11 | consideration.
| ||||||
12 | "Use" means the exercise by any person of any right or | ||||||
13 | power over, or the enjoyment of, a parking space in a parking | ||||||
14 | area or garage subject to tax under this Act.
| ||||||
15 | (Source: P.A. 101-31, eff. 6-28-19.) | ||||||
16 | (Text of Section after amendment by P.A. 102-700 ) | ||||||
17 | Sec. 10-5. Definitions. As used in this Act: | ||||||
18 | "Booking intermediary" means any person or entity that | ||||||
19 | facilitates the processing and fulfillment of reservation | ||||||
20 | transactions between an operator and a person or entity | ||||||
21 | desiring parking in a parking lot or garage of that operator. | ||||||
22 | "Department" means the Department of Revenue. | ||||||
23 | "Operator" means any person who engages in the business of | ||||||
24 | operating a parking area or garage, or who, directly or | ||||||
25 | through an agreement or arrangement with another party, |
| |||||||
| |||||||
1 | collects the consideration for parking or storage of motor | ||||||
2 | vehicles, recreational vehicles, or other self-propelled | ||||||
3 | vehicles, at that parking place. This includes, but is not | ||||||
4 | limited to, any facilitator or aggregator that collects the | ||||||
5 | purchase price from the purchaser. "Operator" does not include | ||||||
6 | a bank, credit card company, payment processor, booking | ||||||
7 | intermediary (except to the extent a booking intermediary is | ||||||
8 | required to be registered under Section 10-30 or as otherwise | ||||||
9 | provided in this Act), or person whose involvement is limited | ||||||
10 | to performing functions that are similar to those performed by | ||||||
11 | a bank, credit card company, or payment processor , or booking | ||||||
12 | intermediary . | ||||||
13 | "Parking area or garage" means any real estate, building, | ||||||
14 | structure, premises, enclosure or other place, whether | ||||||
15 | enclosed or not, except a public way, within the State, where | ||||||
16 | motor vehicles, recreational vehicles, or other self-propelled | ||||||
17 | vehicles, are stored, housed or parked for hire, charge, fee | ||||||
18 | or other valuable consideration in a condition ready for use, | ||||||
19 | or where rent or compensation is paid to the owner, manager, | ||||||
20 | operator or lessee of the premises for the housing, storing, | ||||||
21 | sheltering, keeping or maintaining motor vehicles, | ||||||
22 | recreational vehicles, or other self-propelled vehicles. | ||||||
23 | "Parking area or garage" includes any parking area or garage, | ||||||
24 | whether the vehicle is parked by the owner of the vehicle or by | ||||||
25 | the operator or an attendant. | ||||||
26 | "Person" means any natural individual, firm, trust, |
| |||||||
| |||||||
1 | estate, partnership, association, joint stock company, joint | ||||||
2 | venture, corporation, limited liability company, or a | ||||||
3 | receiver, trustee, guardian, or other representative appointed | ||||||
4 | by order of any court. | ||||||
5 | "Purchase price" means the consideration paid for the | ||||||
6 | purchase of a parking space in a parking area or garage, valued | ||||||
7 | in money, whether received in money or otherwise, including | ||||||
8 | cash, gift cards, credits, and property, and shall be | ||||||
9 | determined without any deduction on account of the cost of | ||||||
10 | materials used, labor or service costs, or any other expense | ||||||
11 | whatsoever. | ||||||
12 | "Purchase price" includes any and all charges that the | ||||||
13 | recipient pays related to or incidental to obtaining the use | ||||||
14 | or privilege of using a parking space in a parking area or | ||||||
15 | garage, including but not limited to any and all related | ||||||
16 | markups, service fees, convenience fees, facilitation fees, | ||||||
17 | cancellation fees, overtime fees, or other such charges, | ||||||
18 | regardless of terminology. However, "purchase price" shall not | ||||||
19 | include consideration paid for: | ||||||
20 | (1) optional, separately stated charges not for the | ||||||
21 | use or privilege of using a parking space in the parking | ||||||
22 | area or garage; | ||||||
23 | (2) any charge for a dishonored check; | ||||||
24 | (3) any finance or credit charge, penalty or charge | ||||||
25 | for delayed payment, or discount for prompt payment; | ||||||
26 | (4) any purchase by a purchaser if the operator is |
| |||||||
| |||||||
1 | prohibited by federal or State Constitution, treaty, | ||||||
2 | convention, statute or court decision from collecting the | ||||||
3 | tax from such purchaser; | ||||||
4 | (5) the isolated or occasional sale of parking spaces | ||||||
5 | subject to tax under this Act by a person who does not hold | ||||||
6 | himself out as being engaged (or who does not habitually | ||||||
7 | engage) in selling of parking spaces; and | ||||||
8 | (6) any amounts added to a purchaser's bills because | ||||||
9 | of charges made pursuant to the tax imposed by this Act.
If | ||||||
10 | credit is extended, then the amount thereof shall be | ||||||
11 | included only as and when payments are made. | ||||||
12 | "Purchaser" means any person who acquires a parking space | ||||||
13 | in a parking area or garage for use for valuable | ||||||
14 | consideration.
| ||||||
15 | "Use" means the exercise by any person of any right or | ||||||
16 | power over, or the enjoyment of, a parking space in a parking | ||||||
17 | area or garage subject to tax under this Act.
| ||||||
18 | (Source: P.A. 101-31, eff. 6-28-19; 102-700, eff. 7-1-23.) | ||||||
19 | (35 ILCS 525/10-10)
| ||||||
20 | Sec. 10-10. Imposition of tax; calculation of tax. | ||||||
21 | (a) Beginning on January 1, 2020, a tax is imposed on the | ||||||
22 | privilege of using in this State a parking space in a parking | ||||||
23 | area or garage for the use of parking one or more motor | ||||||
24 | vehicles, recreational vehicles, or other self-propelled | ||||||
25 | vehicles, at the rate of: |
| |||||||
| |||||||
1 | (1) 6% of the purchase price for a parking space paid | ||||||
2 | for on an hourly, daily, or weekly basis; and | ||||||
3 | (2) 9% of the purchase price for a parking space paid | ||||||
4 | for on a monthly or annual basis. | ||||||
5 | (b) The tax shall be collected from the purchaser by the | ||||||
6 | operator. Notwithstanding the provisions of this subsection, | ||||||
7 | beginning on January 1, 2024, if a booking intermediary | ||||||
8 | facilitates the processing and fulfillment of the reservation | ||||||
9 | for an operator that is not registered under Section 10-30, | ||||||
10 | then the tax shall be collected on the purchase price from the | ||||||
11 | purchaser by the booking intermediary on behalf of the | ||||||
12 | operator, and the tax shall be remitted to the Department by | ||||||
13 | the booking intermediary. The booking intermediary that | ||||||
14 | facilitates the processing and fulfillment of the reservation | ||||||
15 | for an operator that is not registered under Section 10-30 and | ||||||
16 | the unregistered operator are jointly and severally liable for | ||||||
17 | payment of the tax to the Department. | ||||||
18 | (b-5) Booking intermediaries shall collect the tax on the | ||||||
19 | purchase price paid by purchasers on behalf of registered | ||||||
20 | operators. If a booking intermediary charges a separate | ||||||
21 | service charge that is included in the purchase price, the tax | ||||||
22 | shall be collected on that separate service charge as well, | ||||||
23 | even if the separate service charge is retained by the booking | ||||||
24 | intermediary. Beginning January 1, 2024, booking | ||||||
25 | intermediaries are liable for and shall remit the tax to the | ||||||
26 | Department on any separately stated service fee that the |
| |||||||
| |||||||
1 | booking intermediary charges to the customer. Operators are | ||||||
2 | liable for the remittance of tax under this Act on the | ||||||
3 | remainder of the purchase price for the transaction. Booking | ||||||
4 | intermediaries and operators are subject to audit on all such | ||||||
5 | sales. | ||||||
6 | (c) An operator that has paid or remitted the tax imposed | ||||||
7 | by this Act to another operator in connection with the same | ||||||
8 | parking transaction, or the use of the same parking space, | ||||||
9 | that is subject to tax under this Act, shall be entitled to a | ||||||
10 | credit for such tax paid or remitted against the amount of tax | ||||||
11 | owed under this Act, provided that the other operator is | ||||||
12 | registered under this Act. The operator claiming the credit | ||||||
13 | shall have the burden of proving it is entitled to claim a | ||||||
14 | credit. | ||||||
15 | (d) If any operator or booking intermediary erroneously | ||||||
16 | collects tax or collects more from the purchaser than the | ||||||
17 | purchaser's liability for the transaction, the purchaser shall | ||||||
18 | have a legal right to claim a refund of such amount from the | ||||||
19 | operator or booking intermediary . However, if such amount is | ||||||
20 | not refunded to the purchaser for any reason, the operator or | ||||||
21 | booking intermediary is liable to pay such amount to the | ||||||
22 | Department. | ||||||
23 | (e) The tax imposed by this Section is not imposed with | ||||||
24 | respect to any transaction in interstate commerce, to the | ||||||
25 | extent that the transaction may not, under the Constitution | ||||||
26 | and statutes of the United States, be made the subject of |
| |||||||
| |||||||
1 | taxation by this State.
| ||||||
2 | (Source: P.A. 101-31, eff. 6-28-19.) | ||||||
3 | (35 ILCS 525/10-15)
| ||||||
4 | Sec. 10-15. Filing of returns and deposit of proceeds. On | ||||||
5 | or before the last day of each calendar month, every operator | ||||||
6 | engaged in the business of providing to purchasers parking | ||||||
7 | areas and garages in this State during the preceding calendar | ||||||
8 | month and every booking intermediary required to collect tax | ||||||
9 | under Section 10-10 shall file a return with the Department, | ||||||
10 | stating: | ||||||
11 | (1) the name of the operator or booking intermediary ; | ||||||
12 | (2) the address of its principal place of business | ||||||
13 | and , if applicable, the address of the principal place of | ||||||
14 | business from which it provides parking areas and garages | ||||||
15 | in this State; | ||||||
16 | (3) the total amount of receipts received by the | ||||||
17 | operator during the preceding calendar month or quarter, | ||||||
18 | as the case may be, from sales of parking spaces to | ||||||
19 | purchasers in parking areas or garages during the | ||||||
20 | preceding calendar month or quarter; the total amount of | ||||||
21 | receipts for separately stated service fees that are | ||||||
22 | charged to the customer by the booking intermediary in | ||||||
23 | connection with the booking intermediary's facilitation of | ||||||
24 | parking spot reservations for an operator during the | ||||||
25 | preceding calendar month or quarter, as the case may be; |
| |||||||
| |||||||
1 | and, if the return is filed by a booking intermediary that | ||||||
2 | collects the tax under this Act on behalf of an | ||||||
3 | unregistered operator, as provided in Section 10-10, then | ||||||
4 | the total amount of receipts received by the booking | ||||||
5 | intermediary on behalf of the unregistered operator during | ||||||
6 | the preceding calendar month or quarter, as the case may | ||||||
7 | be, from sales of parking spaces to purchasers in parking | ||||||
8 | areas or garages during the preceding calendar month or | ||||||
9 | quarter; | ||||||
10 | (4) deductions allowed by law; | ||||||
11 | (5) the total amount of receipts received by the | ||||||
12 | operator during the preceding calendar month or quarter | ||||||
13 | upon which the tax was computed; the total amount of | ||||||
14 | receipts for separately stated service fees that are | ||||||
15 | charged to the customer by a booking intermediary in | ||||||
16 | connection with the booking intermediary's facilitation of | ||||||
17 | parking spot reservations for an operator during the | ||||||
18 | preceding calendar month or quarter upon which the tax was | ||||||
19 | computed; and, if the return is filed by a booking | ||||||
20 | intermediary that collects the tax under this Act on | ||||||
21 | behalf of an unregistered operator, as provided in Section | ||||||
22 | 10-10, then the total amount of receipts received by the | ||||||
23 | booking intermediary on behalf of the unregistered | ||||||
24 | operator during the preceding calendar month or quarter | ||||||
25 | upon which the tax was computed; | ||||||
26 | (6) the amount of tax due; and |
| |||||||
| |||||||
1 | (7) such other reasonable information as the | ||||||
2 | Department may require. | ||||||
3 | If an operator or booking intermediary ceases to engage in | ||||||
4 | the kind of business that makes it responsible for filing | ||||||
5 | returns under this Act, then that operator or booking | ||||||
6 | intermediary shall file a final return under this Act with the | ||||||
7 | Department on or before the last day of the month after | ||||||
8 | discontinuing such business. | ||||||
9 | All returns required to be filed and payments required to | ||||||
10 | be made under this Act shall be by electronic means. Taxpayers | ||||||
11 | who demonstrate hardship in filing or paying electronically | ||||||
12 | may petition the Department to waive the electronic filing or | ||||||
13 | payment requirement, or both. The Department may require a | ||||||
14 | separate return for the tax under this Act or combine the | ||||||
15 | return for the tax under this Act with the return for other | ||||||
16 | taxes. In addition to the requirement to file all returns | ||||||
17 | required to be filed and payments required to be made under | ||||||
18 | this Act by electronic means, booking intermediaries shall | ||||||
19 | file returns in the form and manner required by the | ||||||
20 | Department. | ||||||
21 | If the same person has more than one business registered | ||||||
22 | with the Department under separate registrations under this | ||||||
23 | Act, that person shall not file each return that is due as a | ||||||
24 | single return covering all such registered businesses but | ||||||
25 | shall file separate returns for each such registered business. | ||||||
26 | If the operator or booking intermediary is a corporation, |
| |||||||
| |||||||
1 | the return filed on behalf of that corporation shall be signed | ||||||
2 | by the president, vice-president, secretary, or treasurer, or | ||||||
3 | by a properly accredited agent of such corporation. | ||||||
4 | The operator or booking intermediary filing the return | ||||||
5 | under this Act shall, at the time of filing the return, pay to | ||||||
6 | the Department the amount of tax imposed by this Act less a | ||||||
7 | discount of 1.75%, not to exceed $1,000 per month, which is | ||||||
8 | allowed to reimburse the operator or booking intermediary for | ||||||
9 | the expenses incurred in keeping records, preparing and filing | ||||||
10 | returns, remitting the tax, and supplying data to the | ||||||
11 | Department on request. | ||||||
12 | If any payment provided for in this Section exceeds the | ||||||
13 | taxpayer's liabilities under this Act, as shown on an original | ||||||
14 | return, the Department may authorize the taxpayer to credit | ||||||
15 | such excess payment against liability subsequently to be | ||||||
16 | remitted to the Department under this Act, in accordance with | ||||||
17 | reasonable rules adopted by the Department. If the Department | ||||||
18 | subsequently determines that all or any part of the credit | ||||||
19 | taken was not actually due to the taxpayer, the taxpayer's | ||||||
20 | discount shall be reduced by an amount equal to the difference | ||||||
21 | between the discount as applied to the credit taken and that | ||||||
22 | actually due, and that taxpayer shall be liable for penalties | ||||||
23 | and interest on such difference.
| ||||||
24 | (Source: P.A. 101-31, eff. 6-28-19.) | ||||||
25 | (35 ILCS 525/10-25)
|
| |||||||
| |||||||
1 | Sec. 10-25. Collection of tax. | ||||||
2 | (a) Beginning with bills issued or charges collected for a | ||||||
3 | purchase of a parking space in a parking area or garage on and | ||||||
4 | after January 1, 2020, the tax imposed by this Act shall be | ||||||
5 | collected from the purchaser by the operator , or, beginning | ||||||
6 | January 1, 2024 by a booking intermediary as provided in | ||||||
7 | Section 10-10, at the rate stated in Section 10-10 and shall be | ||||||
8 | remitted to the Department as provided in this Act. All | ||||||
9 | charges for parking spaces in a parking area or garage are | ||||||
10 | presumed subject to tax collection. Operators and booking | ||||||
11 | intermediaries, as applicable, shall collect the tax from | ||||||
12 | purchasers by adding the tax to the amount of the purchase | ||||||
13 | price received from the purchaser. The tax imposed by the Act | ||||||
14 | shall when collected be stated as a distinct item separate and | ||||||
15 | apart from the purchase price of the service subject to tax | ||||||
16 | under this Act. However, where it is not possible to state the | ||||||
17 | tax separately the Department may by rule exempt such | ||||||
18 | purchases from this requirement so long as purchasers are | ||||||
19 | notified by language on the invoice or notified by a sign that | ||||||
20 | the tax is included in the purchase price. | ||||||
21 | (b) Any person purchasing a parking space in a parking | ||||||
22 | area or garage subject to tax under this Act as to which there | ||||||
23 | has been no charge made to him of the tax imposed by Section | ||||||
24 | 10-10, shall make payment of the tax imposed by Section 10-10 | ||||||
25 | of this Act in the form and manner provided by the Department, | ||||||
26 | such payment to be made to the Department in the manner and |
| |||||||
| |||||||
1 | form required by the Department not later than the 20th day of | ||||||
2 | the month following the month of purchase of the parking | ||||||
3 | space.
| ||||||
4 | (Source: P.A. 101-31, eff. 6-28-19.) | ||||||
5 | (35 ILCS 525/10-30)
| ||||||
6 | Sec. 10-30. Registration of operators and booking | ||||||
7 | intermediaries . | ||||||
8 | (a) A person who engages in business as an operator of a | ||||||
9 | parking area or garage in this State , or, beginning January 1, | ||||||
10 | 2024, a booking intermediary that directly charges to a | ||||||
11 | customer a separately stated service fee pursuant to | ||||||
12 | subsection (b-5) of Section 10-10, or, beginning January 1, | ||||||
13 | 2024, a booking intermediary that facilitates the processing | ||||||
14 | and fulfillment of a reservation for an operator that is not | ||||||
15 | registered under Section 10-10, shall register with the | ||||||
16 | Department. Application for a certificate of registration | ||||||
17 | shall be made to the Department, by electronic means, in the | ||||||
18 | form and manner prescribed by the Department and shall contain | ||||||
19 | any reasonable information the Department may require. Upon | ||||||
20 | receipt of the application for a certificate of registration | ||||||
21 | in proper form and manner, the Department shall issue to the | ||||||
22 | applicant a certificate of registration. Operators who | ||||||
23 | demonstrate that they do not have access to the Internet or | ||||||
24 | demonstrate hardship in applying electronically may petition | ||||||
25 | the Department to waive the electronic application |
| |||||||
| |||||||
1 | requirements. | ||||||
2 | (b) The Department may refuse to issue or reissue a | ||||||
3 | certificate of registration to any applicant for the reasons | ||||||
4 | set forth in Section 2505-380 of the Department of Revenue Law | ||||||
5 | of the Civil Administrative Code of Illinois. | ||||||
6 | (c) Any person aggrieved by any decision of the Department | ||||||
7 | under this Section may, within 20 days after notice of such | ||||||
8 | decision, protest and request a hearing, whereupon the | ||||||
9 | Department shall give notice to such person of the time and | ||||||
10 | place fixed for such hearing and shall hold a hearing in | ||||||
11 | conformity with the provisions of this Act and then issue its | ||||||
12 | final administrative decision in the matter to such person. In | ||||||
13 | the absence of such a protest within 20 days, the Department's | ||||||
14 | decision shall become final without any further determination | ||||||
15 | being made or notice given.
| ||||||
16 | (Source: P.A. 101-31, eff. 6-28-19.) | ||||||
17 | (35 ILCS 525/10-35)
| ||||||
18 | Sec. 10-35. Revocation of certificate of registration. | ||||||
19 | (a) The Department may, after notice and a hearing as | ||||||
20 | provided in this Act, revoke the certificate of registration | ||||||
21 | of any operator or booking intermediary who violates any of | ||||||
22 | the provisions of this Act or any rule adopted pursuant to this | ||||||
23 | Act. Before revocation of a certificate of registration, the | ||||||
24 | Department shall, within 90 days after non-compliance and at | ||||||
25 | least 7 days prior to the date of the hearing, give the |
| |||||||
| |||||||
1 | operator or booking intermediary so accused notice in writing | ||||||
2 | of the charge against him or her, and on the date designated | ||||||
3 | shall conduct a hearing upon this matter. The lapse of such | ||||||
4 | 90-day period shall not preclude the Department from | ||||||
5 | conducting revocation proceedings at a later date if | ||||||
6 | necessary. Any hearing held under this Section shall be | ||||||
7 | conducted by the Director or by any officer or employee of the | ||||||
8 | Department designated in writing by the Director. | ||||||
9 | (b) The Department may revoke a certificate of | ||||||
10 | registration for the reasons set forth in Section 2505-380 of | ||||||
11 | the Department of Revenue Law of the Civil Administrative Code | ||||||
12 | of Illinois. | ||||||
13 | (c) Upon the hearing of any such proceeding, the Director | ||||||
14 | or any officer or employee of the Department designated in | ||||||
15 | writing by the Director may administer oaths, and the | ||||||
16 | Department may procure by its subpoena the attendance of | ||||||
17 | witnesses and, by its subpoena duces tecum, the production of | ||||||
18 | relevant books and papers. Any circuit court, upon application | ||||||
19 | either of the operator or of the Department, may, by order duly | ||||||
20 | entered, require the attendance of witnesses and the | ||||||
21 | production of relevant books and papers before the Department | ||||||
22 | in any hearing relating to the revocation of certificates of | ||||||
23 | registration. Upon refusal or neglect to obey the order of the | ||||||
24 | court, the court may compel obedience thereof by proceedings | ||||||
25 | for contempt. | ||||||
26 | (d) The Department may, by application to any circuit |
| |||||||
| |||||||
1 | court, obtain an injunction requiring any person who engages | ||||||
2 | in business as an operator or booking intermediary under this | ||||||
3 | Act to obtain a certificate of registration. Upon refusal or | ||||||
4 | neglect to obey the order of the court, the court may compel | ||||||
5 | obedience by proceedings for contempt.
| ||||||
6 | (Source: P.A. 101-31, eff. 6-28-19.) | ||||||
7 | (35 ILCS 525/10-45)
| ||||||
8 | Sec. 10-45. Tax collected as debt owed to State. The tax | ||||||
9 | herein required to be collected by any operator , booking | ||||||
10 | intermediary, or valet business and any such tax collected by | ||||||
11 | that person, shall constitute a debt owed by that person to | ||||||
12 | this State.
| ||||||
13 | (Source: P.A. 101-31, eff. 6-28-19.) | ||||||
14 | (35 ILCS 525/10-50)
| ||||||
15 | Sec. 10-50. Incorporation by reference. All of the | ||||||
16 | provisions of Sections 1, 2a, 2b, 3 (except provisions | ||||||
17 | relating to transaction returns and except for provisions that | ||||||
18 | are inconsistent with this Act), in respect to all provisions | ||||||
19 | therein other than the State rate of tax) 4, 5, 5a, 5b, 5c, 5d, | ||||||
20 | 5e, 5f, 5g, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, | ||||||
21 | and 13 of the Retailers' Occupation Tax Act that are not | ||||||
22 | inconsistent with this Act, and all provisions of the Uniform | ||||||
23 | Penalty and Interest Act shall apply, as far as practicable, | ||||||
24 | to the subject matter of this Act to the same extent as if such |
| |||||||
| |||||||
1 | provisions were included in this Act. The enumerated | ||||||
2 | provisions of the Retailers' Occupation Tax Act in this | ||||||
3 | Section and all provisions of the Uniform Penalty and Interest | ||||||
4 | Act shall apply, as far as practicable, to booking | ||||||
5 | intermediaries required to be registered under Section 10-30 | ||||||
6 | of this Act.
| ||||||
7 | (Source: P.A. 101-31, eff. 6-28-19.) | ||||||
8 | ARTICLE 25. HOTELS-DISASTER RELIEF | ||||||
9 | Section 25-5. The Hotel Operators' Occupation Tax Act is | ||||||
10 | amended by changing Section 3 as follows:
| ||||||
11 | (35 ILCS 145/3) (from Ch. 120, par. 481b.33)
| ||||||
12 | Sec. 3. Rate; exemptions.
| ||||||
13 | (a) A tax is imposed upon persons engaged in the business | ||||||
14 | of renting,
leasing or letting rooms in a hotel at the rate of | ||||||
15 | 5% of 94% of the gross
rental receipts from such renting, | ||||||
16 | leasing or letting, excluding, however,
from gross rental | ||||||
17 | receipts, the proceeds of such renting, leasing or
letting to | ||||||
18 | permanent residents of that hotel and proceeds from the tax
| ||||||
19 | imposed under subsection (c) of Section 13 of the Metropolitan | ||||||
20 | Pier and
Exposition Authority Act.
| ||||||
21 | (b) There shall be imposed an
additional tax upon persons | ||||||
22 | engaged in the business of renting, leasing or
letting rooms | ||||||
23 | in a hotel at the rate of 1% of 94% of the gross rental
|
| |||||||
| |||||||
1 | receipts from such renting, leasing or letting, excluding, | ||||||
2 | however, from
gross rental receipts, the proceeds of such | ||||||
3 | renting, leasing or letting to
permanent residents of that | ||||||
4 | hotel and proceeds from the tax imposed under
subsection (c) | ||||||
5 | of Section 13 of the Metropolitan Pier and Exposition
| ||||||
6 | Authority Act.
| ||||||
7 | (c) No funds received pursuant to this Act shall be used to
| ||||||
8 | advertise for or otherwise promote new competition in the | ||||||
9 | hotel business.
| ||||||
10 | (d) However, such tax is not imposed upon the privilege of
| ||||||
11 | engaging in any business in Interstate Commerce or otherwise,
| ||||||
12 | which business may not, under the Constitution and Statutes of
| ||||||
13 | the United States, be made the subject of taxation by this | ||||||
14 | State.
In addition, the tax is not imposed upon gross rental | ||||||
15 | receipts for which
the hotel operator is prohibited from | ||||||
16 | obtaining reimbursement for the tax
from the customer by | ||||||
17 | reason of a federal treaty.
| ||||||
18 | (d-5) On and after July 1, 2017, the tax imposed by this | ||||||
19 | Act shall not apply to gross rental receipts received by an | ||||||
20 | entity that is organized and operated exclusively for | ||||||
21 | religious purposes and possesses an active Exemption | ||||||
22 | Identification Number issued by the Department pursuant to the | ||||||
23 | Retailers' Occupation Tax Act when acting as a hotel operator | ||||||
24 | renting, leasing, or letting rooms: | ||||||
25 | (1) in furtherance of the purposes for which it is | ||||||
26 | organized; or |
| |||||||
| |||||||
1 | (2) to entities that (i) are organized and operated | ||||||
2 | exclusively for religious purposes, (ii) possess an active | ||||||
3 | Exemption Identification Number issued by the Department | ||||||
4 | pursuant to the Retailers' Occupation Tax Act, and (iii) | ||||||
5 | rent the rooms in furtherance of the purposes for which | ||||||
6 | they are organized. | ||||||
7 | No gross rental receipts are exempt under paragraph (2) of | ||||||
8 | this subsection (d-5) unless the hotel operator obtains the | ||||||
9 | active Exemption Identification Number from the exclusively | ||||||
10 | religious entity to whom it is renting and maintains that | ||||||
11 | number in its books and records. Gross rental receipts from | ||||||
12 | all rentals other than those described in items (1) or (2) of | ||||||
13 | this subsection (d-5) are subject to the tax imposed by this | ||||||
14 | Act unless otherwise exempt under this Act. | ||||||
15 | This subsection (d-5) is exempt from the sunset provisions | ||||||
16 | of Section 3-5 of this Act. | ||||||
17 | (d-10) On and after July 1, 2023, the tax imposed by this | ||||||
18 | Act shall not apply to gross rental receipts received from the | ||||||
19 | renting,
leasing, or letting of rooms to an entity that is | ||||||
20 | organized and operated exclusively by an organization | ||||||
21 | chartered by the United States Congress for the purpose of | ||||||
22 | providing disaster relief and that possesses an active | ||||||
23 | Exemption Identification Number issued by the Department | ||||||
24 | pursuant to the Retailers' Occupation Tax Act if the renting, | ||||||
25 | leasing, or letting of the rooms is in furtherance of the | ||||||
26 | purposes for which the exempt organization is organized. This |
| |||||||
| |||||||
1 | subsection (d-10) is exempt from the sunset provisions of | ||||||
2 | Section 3-5 of this Act. | ||||||
3 | (e) Persons subject to the tax imposed by this Act may
| ||||||
4 | reimburse themselves for their tax liability under this Act by
| ||||||
5 | separately stating such tax as an additional charge, which
| ||||||
6 | charge may be stated in combination, in a single amount, with
| ||||||
7 | any tax imposed pursuant to Sections 8-3-13 and 8-3-14 of the
| ||||||
8 | Illinois Municipal Code, and Section 25.05-10 of "An Act to | ||||||
9 | revise
the law in relation to counties".
| ||||||
10 | (f) If any hotel operator collects an amount (however
| ||||||
11 | designated) which purports to reimburse such operator for | ||||||
12 | hotel
operators' occupation tax liability measured by receipts | ||||||
13 | which
are not subject to hotel operators' occupation tax, or | ||||||
14 | if any
hotel operator, in collecting an amount (however | ||||||
15 | designated)
which purports to reimburse such operator for | ||||||
16 | hotel operators'
occupation tax liability measured by receipts | ||||||
17 | which are subject
to tax under this Act, collects more from the | ||||||
18 | customer than the
operators' hotel operators' occupation tax | ||||||
19 | liability in the
transaction is, the customer shall have a | ||||||
20 | legal right to claim
a refund of such amount from such | ||||||
21 | operator. However, if such
amount is not refunded to the | ||||||
22 | customer for any reason, the hotel
operator is liable to pay | ||||||
23 | such amount to the Department.
| ||||||
24 | (Source: P.A. 100-213, eff. 8-18-17.)
| ||||||
25 | ARTICLE 30. MUNICIPAL CODE-UTILITIES |
| |||||||
| |||||||
1 | Section 30-5. The Illinois Municipal Code is amended by | ||||||
2 | changing Section 8-11-2.5 as follows: | ||||||
3 | (65 ILCS 5/8-11-2.5)
| ||||||
4 | Sec. 8-11-2.5. Municipal tax review; requests for | ||||||
5 | information. | ||||||
6 | (a) If a municipality has imposed a tax under Section | ||||||
7 | 8-11-2, then the municipality, which may act through its | ||||||
8 | designated auditor or agent, may conduct an audit of tax | ||||||
9 | receipts collected from the public utility that is subject to | ||||||
10 | the tax
or that collects the tax from purchasers on behalf of | ||||||
11 | the municipality to determine whether the amount of tax that | ||||||
12 | was paid by the public utility was accurate.
| ||||||
13 | (b) Not more than once every 2 years, a municipality that | ||||||
14 | has imposed a tax under Section 8-11-2 of this Code Act may, | ||||||
15 | subject to the limitations and protections stated in the Local | ||||||
16 | Government Taxpayers' Bill of Rights Act, make a written | ||||||
17 | request via e-mail to an e-mail address provided by the | ||||||
18 | utility for any information from a utility in the format | ||||||
19 | maintained by the public utility in the ordinary course of its | ||||||
20 | business that the municipality reasonably requires in order to | ||||||
21 | perform an audit under subsection (a). The information that | ||||||
22 | may be requested by the municipality includes, without | ||||||
23 | limitation: | ||||||
24 | (1) in an electronic format used by the public utility |
| |||||||
| |||||||
1 | in the ordinary course of its business, the | ||||||
2 | premises-specific and other information used by the public | ||||||
3 | utility to determine the amount of tax due to the | ||||||
4 | municipality, for a time period that includes the year in | ||||||
5 | which the request is made and not more than 6 years | ||||||
6 | immediately preceding that year, as appropriate for the | ||||||
7 | period being audited, and which shall include for each | ||||||
8 | customer premises in the municipality: (i) the premises | ||||||
9 | address and zip code; (ii) the classification of the | ||||||
10 | premises as designated by the public utility, such as | ||||||
11 | residential, commercial, or industrial; (iii) monthly | ||||||
12 | usage information sufficient to calculate taxes due, in | ||||||
13 | therms, kilowatts, minutes, or other such other unit of | ||||||
14 | measurement used to calculate the taxes; (iv) the taxes | ||||||
15 | actually assessed, collected, and remitted to the | ||||||
16 | municipality; (v) the first date of service for the | ||||||
17 | premises, if that date occurred within the period being | ||||||
18 | audited; and (vi) any tax exemption claimed for the | ||||||
19 | premises and any additional information that supports a | ||||||
20 | specific tax exemption, if the municipality requests that | ||||||
21 | information, including the customer name and other | ||||||
22 | relevant data; however, a public utility that is an | ||||||
23 | electric utility may not provide other customer-specific | ||||||
24 | information to the municipality; and | ||||||
25 | (2) the premises address for customer accounts that | ||||||
26 | the public utility's records indicate are: (i) in a |
| |||||||
| |||||||
1 | bordering municipality, township, or unincorporated area | ||||||
2 | (other than the City of Chicago), provided that the | ||||||
3 | municipality provides the public utility a list of such | ||||||
4 | bordering jurisdictions; or (ii) in any zip code with | ||||||
5 | boundaries that include or are adjacent to the requesting | ||||||
6 | municipality provided that the municipality provides the | ||||||
7 | public utility a list of those zip codes; this item (ii) | ||||||
8 | applies to requests made on or after September 1, 2022. If | ||||||
9 | any such customer is determined by the municipality and | ||||||
10 | the utility to be located within the requesting | ||||||
11 | municipality, then the public utility shall provide the | ||||||
12 | additional information provided in paragraph (1) of this | ||||||
13 | subsection (b). . | ||||||
14 | Following the municipality's receipt of the information | ||||||
15 | provided by the public utility pursuant to paragraphs (1) or | ||||||
16 | (2) of this subsection (b), if a question or issue arises that | ||||||
17 | can only be addressed by accessing customer-specific or | ||||||
18 | additional information not described in this Section, then the | ||||||
19 | utility shall attempt to resolve the question or issue without | ||||||
20 | disclosing any customer-specific information. If this process | ||||||
21 | does not resolve the question or issue, then either the | ||||||
22 | municipality or public utility can further pursue the matter | ||||||
23 | before the Department of Revenue, which has the discretion to | ||||||
24 | receive or share customer-specific information with the | ||||||
25 | municipality as appropriate subject to confidentiality | ||||||
26 | restrictions. |
| |||||||
| |||||||
1 | (c) Each public utility must provide the information | ||||||
2 | requested under subsection (b) within 45 days after the date | ||||||
3 | of the request. | ||||||
4 | The time in which a public utility must provide the | ||||||
5 | information requested under subsection (b) may be extended by | ||||||
6 | an agreement between the municipality and the public utility. | ||||||
7 | (d) If an audit by the municipality or its agents finds an | ||||||
8 | error by the public utility in the amount of taxes paid by the | ||||||
9 | public utility, then the municipality must notify the public | ||||||
10 | utility of the error. Any such notice must be issued pursuant | ||||||
11 | to Section 30 of the Local Government Taxpayers' Bill of | ||||||
12 | Rights Act or
a lesser period of time from the date the tax was | ||||||
13 | due that may be specified in the municipal
ordinance imposing | ||||||
14 | the tax. Upon such a notice, any audit shall be conducted | ||||||
15 | pursuant to Section 35 of the Local Government Taxpayers' Bill | ||||||
16 | of Rights Act subject to the timelines set forth in this | ||||||
17 | subsection (d). The public utility must submit a written | ||||||
18 | response within 60 days after the date the notice was | ||||||
19 | postmarked stating that it has corrected the error or stating | ||||||
20 | the reason that the error is inapplicable or inaccurate. The | ||||||
21 | municipality then has 60 days after the receipt of the public | ||||||
22 | utility's response to review and contest the conclusion of the | ||||||
23 | public utility. If the parties are unable to agree on the | ||||||
24 | disposition of the audit findings within 120 days after the | ||||||
25 | notification of the error to the public utility, then either | ||||||
26 | party may submit the matter for appeal as outlined in Section |
| |||||||
| |||||||
1 | 40 of the Local Government Taxpayers' Bill of Rights Act. If | ||||||
2 | the appeals process does not produce a satisfactory result, | ||||||
3 | then either party may pursue the alleged error in a court of | ||||||
4 | competent jurisdiction. | ||||||
5 | (e) The public utility shall be liable to the municipality | ||||||
6 | for unpaid taxes, including taxes that the public utility | ||||||
7 | failed to properly bill to the customer subject to subsection | ||||||
8 | paragraph (2) of subsection (e-10) of this Section. This | ||||||
9 | subsection (e) does not limit a utility's right to an | ||||||
10 | offsetting credit it would otherwise be entitled to, including | ||||||
11 | that authorized by subsection (c) of Section 8-11-2 of this | ||||||
12 | the Code. To the extent that a public utility's errors in past | ||||||
13 | tax collections and payments relate to premises located in an | ||||||
14 | area of the municipality that was annexed on or after March 17, | ||||||
15 | 2023 ( the effective date of Public Act 102-1144) this | ||||||
16 | amendatory Act of the 102nd General Assembly , however, the | ||||||
17 | public utility shall only be liable for such errors beginning | ||||||
18 | 60 days after the date that the municipality provided the | ||||||
19 | public utility notice of the annexation, provided that the | ||||||
20 | public utility provides municipalities with an email address | ||||||
21 | to send annexation notices. A copy of the annexation ordinance | ||||||
22 | and the map filed with the County Clerk sent to the email | ||||||
23 | address provided by the public utility shall be deemed | ||||||
24 | sufficient notice, but other forms of notice may also be | ||||||
25 | sufficient. | ||||||
26 | (e-5) Upon mutual agreement, a utility and municipality |
| |||||||
| |||||||
1 | may use a web portal in lieu of email to receive notice of | ||||||
2 | annexations and boundary changes. After December 31, 2025 for | ||||||
3 | a gas public utility that serves more than 2,000,000 customers | ||||||
4 | in Illinois and after December 31, 2022 for all other public | ||||||
5 | utilities that serve more than 1,000,000 retail customers in | ||||||
6 | Illinois, the public utilities shall provide a secure web | ||||||
7 | portal for municipalities to use, and, thereafter, the web | ||||||
8 | portals shall be used by all municipalities to notify the | ||||||
9 | public utilities of annexations. The web portal must provide | ||||||
10 | the municipality with an electronic record of all | ||||||
11 | communications and attached documents that the municipality | ||||||
12 | has submitted through the portal. | ||||||
13 | (e-10) (1) No later than August 1, 2023, the Department of | ||||||
14 | Revenue shall develop and publish a written process to be used | ||||||
15 | by each public utility and each municipality that imposes a | ||||||
16 | tax under Section 8-11-2 of this the Code, which may act | ||||||
17 | through its designated auditor or agent, under which: | ||||||
18 | (A) by December 31, 2024, and on a regular schedule | ||||||
19 | thereafter to occur approximately every 5 years, each | ||||||
20 | public utility shall work collaboratively with each | ||||||
21 | municipality to develop and file with the Department of | ||||||
22 | Revenue, a master list of all premises addresses in the | ||||||
23 | municipality (including premises addresses with inactive | ||||||
24 | accounts) that are subject to such tax and all accounts in | ||||||
25 | the municipality that are exempt from such tax, provided | ||||||
26 | that the final date for the first master list shall be |
| |||||||
| |||||||
1 | extended, at the utility's request, to no later than | ||||||
2 | December 31, 2026; | ||||||
3 | (B) information is provided to the municipality to | ||||||
4 | facilitate development of the master list including | ||||||
5 | information described in paragraph (1) of subsection (b) | ||||||
6 | of this Section regarding all accounts (including premises | ||||||
7 | addresses with inactive accounts) that the public | ||||||
8 | utility's records show are in the municipality and the | ||||||
9 | premises addresses in (i) any bordering municipality, (ii) | ||||||
10 | any bordering township, or (iii) any zip code that is in | ||||||
11 | any part in the municipality or that borders the | ||||||
12 | municipality; | ||||||
13 | (C) any dispute between the public utility and the | ||||||
14 | municipality related to the master list will be resolved; | ||||||
15 | (D) on a semi-annual basis following the development | ||||||
16 | of the master list, each public utility shall provide to | ||||||
17 | each municipality certain information that the | ||||||
18 | municipality can use to nominate changes to the master | ||||||
19 | list, including, but not limited to: (i) a list of any | ||||||
20 | tax-related changes, such as the addition or removal of an | ||||||
21 | exemption, or to the taxing jurisdiction, to any account | ||||||
22 | on the master list; and (ii) new premises addresses within | ||||||
23 | the municipality, any bordering municipality, in any | ||||||
24 | bordering township, or in any zip code that is in any part | ||||||
25 | in the municipality or that borders the municipality; | ||||||
26 | (E) accounts nominated by the municipality to be added |
| |||||||
| |||||||
1 | or deleted from the master list may be submitted to the | ||||||
2 | public utility and related disputes will be resolved; | ||||||
3 | (F) changes may be made to the master list; and | ||||||
4 | (G) the utility may file a master list based solely on | ||||||
5 | its records if the municipality fails to participate and | ||||||
6 | such a municipality may request to restart the process | ||||||
7 | prior to the end of the 5-year five-year cycle. | ||||||
8 | (2) No public utility is liable for any error in tax | ||||||
9 | collections or payments due more than 60 days after the date | ||||||
10 | that the first master list for the relevant municipality is | ||||||
11 | filed with the Department of Revenue unless such error in tax | ||||||
12 | collection or payment: | ||||||
13 | (A) was related to a premises address on the master | ||||||
14 | list at the time of the error; | ||||||
15 | (B) was related to an area of the municipality annexed | ||||||
16 | on or after March 17, 2023 ( the effective date of Public | ||||||
17 | Act 102-1144) this amendatory Act of the 102nd General | ||||||
18 | Assembly , notice of which was properly provided to the | ||||||
19 | public utility pursuant to the procedures set forth in | ||||||
20 | subsection (e); or | ||||||
21 | (C) resulted from the public utility's failure to | ||||||
22 | comply with the process established in this subsection | ||||||
23 | (e-10). | ||||||
24 | (3) If the public utility uses a portal as set forth in | ||||||
25 | subsection (e-5), all lists, changes affecting tax collection | ||||||
26 | and remission, proposed corrections, and reports shall be |
| |||||||
| |||||||
1 | provided through such portal. | ||||||
2 | (e-15) If a customer paid a tax to a municipality that the | ||||||
3 | customer did not owe or was in excess of the tax the customer | ||||||
4 | owed, then the customer may, to the extent allowed by Section | ||||||
5 | 9-252 of the Public Utilities Act, recover the tax or over | ||||||
6 | payment from the public utility, and any amount so paid by the | ||||||
7 | public utility may be deducted by that public utility from any | ||||||
8 | taxes then or thereafter owed by the public utility to that | ||||||
9 | municipality. | ||||||
10 | (e-20) (1) Any court of competent jurisdiction The | ||||||
11 | Department of Revenue shall have the authority to resolve a | ||||||
12 | claim by a municipality that a public utility materially | ||||||
13 | failed to comply with the requirements of subsections (b) or | ||||||
14 | (c) of this Section or the process developed under subsection | ||||||
15 | (e-10) of this Section. If a court the Department of Revenue | ||||||
16 | finds, after notice and hearing, that a public utility (i) | ||||||
17 | caused a material delay in providing information properly | ||||||
18 | requested under such subsections or (ii) omitted a material | ||||||
19 | portion of information properly requested, then , if the claim | ||||||
20 | relates to subsections (b) or (c), the court Department shall | ||||||
21 | assess a penalty on the utility of up to $50,000 per audit, or | ||||||
22 | up to $10,000 per audit for a utility that served less than | ||||||
23 | 100,000 retail customers on the date of the audit notice, or, | ||||||
24 | if the claim relates to subsection (e-10), up to $50,000 per | ||||||
25 | 5-year master list cycle or up to $10,000 per cycle for a | ||||||
26 | utility that served less than 100,000 retail customers on the |
| |||||||
| |||||||
1 | date such master list was filed with the Department, which | ||||||
2 | penalty shall be paid by the public utility to the | ||||||
3 | municipality Department of Revenue for deposit into the | ||||||
4 | Supplemental Low-Income Energy Assistance Fund . | ||||||
5 | Notwithstanding anything to the contrary, a penalty assessed | ||||||
6 | pursuant to this subsection shall be the exclusive remedy for | ||||||
7 | the conduct that is the subject of the claim. A penalty | ||||||
8 | assessed under this subsection shall bar and prohibit pursuit | ||||||
9 | of any other penalty, fine, or recovery related to the conduct | ||||||
10 | for which the penalty was assessed. | ||||||
11 | (2) No penalty shall be assessed by the Department | ||||||
12 | pursuant to this subsection if the Department finds that a | ||||||
13 | delay or omission was immaterial or de minimis. | ||||||
14 | (3) Any penalties or fines paid by a public utility | ||||||
15 | pursuant to this subsection shall not be recoverable through | ||||||
16 | the utility's rates. | ||||||
17 | (4) (Blank). If a municipality and public utility have a | ||||||
18 | disagreement regarding the scope or conduct of an audit | ||||||
19 | undertaken pursuant to this Section, they shall work together | ||||||
20 | in good faith to attempt to resolve the dispute. If, after a | ||||||
21 | period of no less than 14 days, the municipality and public | ||||||
22 | utility are not able to reach an agreement regarding the | ||||||
23 | dispute, either entity, or both entities jointly, may submit a | ||||||
24 | request to the Illinois Department of Revenue seeking | ||||||
25 | resolution of the dispute, and the Department shall have the | ||||||
26 | authority to resolve the issue, and shall resolve such dispute |
| |||||||
| |||||||
1 | within 60 days. Each such request must include a statement | ||||||
2 | showing that consultation and reasonable attempts to resolve | ||||||
3 | the dispute have failed. | ||||||
4 | The time period established pursuant to this Section for | ||||||
5 | complying with requests for information under this Section | ||||||
6 | shall be suspended during the dispute resolution processes set | ||||||
7 | forth in this paragraph (4) of subsection (e-20), but only for | ||||||
8 | the issue or issues that are the subject of the dispute. | ||||||
9 | Information requests that are undisputed shall continue to be | ||||||
10 | subject to the time periods for compliance set forth in this | ||||||
11 | Section. | ||||||
12 | (f) All account-specific account specific and | ||||||
13 | premises-specific information provided by a public utility | ||||||
14 | under this Section may be used only for the purpose of an audit | ||||||
15 | of taxes conducted under this Section and the enforcement of | ||||||
16 | any related tax claim. All such information must be held in | ||||||
17 | strict confidence by the municipality
and its agents and may | ||||||
18 | not be disclosed to the public under the Freedom of | ||||||
19 | Information Act or under any other similar statutes allowing | ||||||
20 | for or requiring public disclosure. | ||||||
21 | (g) The provisions of this Section shall not be construed | ||||||
22 | as diminishing or replacing any civil remedy available to a | ||||||
23 | municipality, taxpayer, or tax collector. | ||||||
24 | (h) This Section does not apply to any municipality having | ||||||
25 | a population greater than 1,000,000.
| ||||||
26 | (i) The changes to subsection (e) and paragraph (2) of |
| |||||||
| |||||||
1 | subsection (e-10) of this Section made by Public Act 102-1144 | ||||||
2 | this amendatory Act of the 102nd General Assembly apply to | ||||||
3 | taxes due on or after August 1, 2022. The remaining changes to | ||||||
4 | this Section made by Public Act 102-1144 this amendatory Act | ||||||
5 | of the 102nd General Assembly apply on or after March 17, 2023 | ||||||
6 | ( the effective date of Public Act 102-1144) this amendatory | ||||||
7 | Act of the 102nd General Assembly . | ||||||
8 | (j) As used in this Section: | ||||||
9 | "Customer-specific information" means the name, phone | ||||||
10 | number, email address, and banking information of a customer. | ||||||
11 | "Customer-specific information" includes the load-shape data | ||||||
12 | associated with a customer account. "Customer-specific | ||||||
13 | information" does not include the tax-exempt status of the | ||||||
14 | premises and the name of tax-exempt tax exempt customers. | ||||||
15 | "Premises-specific information" means any information, | ||||||
16 | including billing and usage data, associated with a premises | ||||||
17 | address that is not customer-specific information. | ||||||
18 | "Premises address" includes the jurisdiction to which the | ||||||
19 | address is currently coded by the public utility for municipal | ||||||
20 | tax purposes. | ||||||
21 | (Source: P.A. 102-1144, eff. 3-17-23; revised 4-5-23.) | ||||||
22 | ARTICLE 35. RIVER EDGE ZONES | ||||||
23 | Section 35-5. The River Edge Redevelopment Zone Act is | ||||||
24 | amended by changing Section 10-5.3 as follows: |
| |||||||
| |||||||
1 | (65 ILCS 115/10-5.3)
| ||||||
2 | Sec. 10-5.3. Certification of River Edge Redevelopment | ||||||
3 | Zones. | ||||||
4 | (a) Approval of designated River Edge Redevelopment Zones | ||||||
5 | shall be made by the Department by certification of the | ||||||
6 | designating ordinance. The Department shall promptly issue a | ||||||
7 | certificate for each zone upon its approval. The certificate | ||||||
8 | shall be signed by the Director of the Department, shall make | ||||||
9 | specific reference to the designating ordinance, which shall | ||||||
10 | be attached thereto, and shall be filed in the office of the | ||||||
11 | Secretary of State. A certified copy of the River Edge | ||||||
12 | Redevelopment Zone Certificate, or a duplicate original | ||||||
13 | thereof, shall be recorded in the office of the recorder of | ||||||
14 | deeds of the county in which the River Edge Redevelopment Zone | ||||||
15 | lies. | ||||||
16 | (b) A River Edge Redevelopment Zone shall be effective | ||||||
17 | upon its certification. The Department shall transmit a copy | ||||||
18 | of the certification to the Department of Revenue, and to the | ||||||
19 | designating municipality.
Upon certification of a River Edge | ||||||
20 | Redevelopment Zone, the terms and provisions of the | ||||||
21 | designating ordinance shall be in effect, and may not be | ||||||
22 | amended or repealed except in accordance with Section 10-5.4. | ||||||
23 | (c) A River Edge Redevelopment Zone shall be in effect for | ||||||
24 | the period stated in the certificate, which shall in no event | ||||||
25 | exceed 30 calendar years. Zones shall terminate at midnight of |
| |||||||
| |||||||
1 | December 31 of the final calendar year of the certified term, | ||||||
2 | except as provided in Section 10-5.4. | ||||||
3 | (d) In calendar years 2006 and 2007, the Department may | ||||||
4 | certify one pilot River Edge Redevelopment Zone in the City of | ||||||
5 | East St. Louis, one pilot River Edge Redevelopment Zone in the | ||||||
6 | City of Rockford, and one pilot River Edge Redevelopment Zone | ||||||
7 | in the City of Aurora. | ||||||
8 | In calendar year 2009, the Department may certify one | ||||||
9 | pilot River Edge Redevelopment Zone in the City of Elgin. | ||||||
10 | On or after the effective date of this amendatory Act of | ||||||
11 | the 97th General Assembly, the Department may certify one | ||||||
12 | additional pilot River Edge Redevelopment Zone in the City of | ||||||
13 | Peoria. | ||||||
14 | On or after the effective date of this amendatory Act of | ||||||
15 | the 103rd General Assembly, the Department may certify 2 | ||||||
16 | additional pilot River Edge Redevelopment Zones, including one | ||||||
17 | in the City of Joliet and one in the City of Kankakee. | ||||||
18 | After certifying the additional pilot River Edge | ||||||
19 | Redevelopment Zones authorized by the above paragraphs, | ||||||
20 | Thereafter the Department may not certify any additional River | ||||||
21 | Edge Redevelopment Zones, but it may amend and rescind | ||||||
22 | certifications of existing River Edge Redevelopment Zones in | ||||||
23 | accordance with Section 10-5.4, except that no River Edge | ||||||
24 | Redevelopment Zone may be extended on or after the effective | ||||||
25 | date of this amendatory Act of the 97th General Assembly. Each | ||||||
26 | River Edge Redevelopment Zone in existence on the effective |
| |||||||
| |||||||
1 | date of this amendatory Act of the 97th General Assembly shall | ||||||
2 | continue until its scheduled termination under this Act, | ||||||
3 | unless the Zone is decertified sooner. At the time of its term | ||||||
4 | expiration each River Edge Redevelopment Zone will become an | ||||||
5 | open enterprise zone, available for the previously designated | ||||||
6 | area or a different area to compete for designation as an | ||||||
7 | enterprise zone. No preference for designation as a Zone will | ||||||
8 | be given to the previously designated area. | ||||||
9 | (e) A municipality in which a River Edge Redevelopment | ||||||
10 | Zone has been certified must submit to the Department, within | ||||||
11 | 60 days after the certification, a plan for encouraging the | ||||||
12 | participation by minority persons, women, persons with | ||||||
13 | disabilities, and veterans in the zone. The Department may | ||||||
14 | assist the municipality in developing and implementing the | ||||||
15 | plan. The terms "minority person", "woman", and "person with a | ||||||
16 | disability" have the meanings set forth under Section 2 of the | ||||||
17 | Business Enterprise for Minorities, Women, and Persons with | ||||||
18 | Disabilities Act. "Veteran" means an Illinois resident who is | ||||||
19 | a veteran as defined in subsection (h) of Section 1491 of Title | ||||||
20 | 10 of the United States Code.
| ||||||
21 | (Source: P.A. 100-391, eff. 8-25-17.) | ||||||
22 | ARTICLE 40. HISTORIC PRESERVATION | ||||||
23 | Section 40-5. The Illinois Income Tax Act is amended by | ||||||
24 | changing Section 228 as follows: |
| |||||||
| |||||||
1 | (35 ILCS 5/228) | ||||||
2 | Sec. 228. Historic preservation credit. For
tax years | ||||||
3 | beginning on or after January 1, 2019 and ending on
or before | ||||||
4 | December 31, 2028 December 31, 2023 , a taxpayer who qualifies | ||||||
5 | for a
credit under the Historic Preservation Tax Credit Act is | ||||||
6 | entitled to a credit against the taxes
imposed under | ||||||
7 | subsections (a) and (b) of Section 201 of this
Act as provided | ||||||
8 | in that Act. If the taxpayer is a partnership,
Subchapter S | ||||||
9 | corporation, or a limited liability company the credit shall | ||||||
10 | be allowed to the
partners, shareholders, or members in | ||||||
11 | accordance with the determination
of income and distributive | ||||||
12 | share of income under Sections 702
and 704 and Subchapter S of | ||||||
13 | the Internal Revenue Code provided that credits granted to a | ||||||
14 | partnership, a limited liability company taxed as a | ||||||
15 | partnership, or other multiple owners of property shall be | ||||||
16 | passed through to the partners, members, or owners | ||||||
17 | respectively on a pro rata basis or pursuant to an executed | ||||||
18 | agreement among the partners, members, or owners documenting | ||||||
19 | any alternate distribution method.
If the amount of any tax | ||||||
20 | credit awarded under this Section
exceeds the qualified | ||||||
21 | taxpayer's income tax liability for the
year in which the | ||||||
22 | qualified rehabilitation plan was placed in
service, the | ||||||
23 | excess amount may be carried forward as
provided in the | ||||||
24 | Historic Preservation Tax Credit Act.
| ||||||
25 | (Source: P.A. 101-81, eff. 7-12-19; 102-741, eff. 5-6-22.) |
| |||||||
| |||||||
1 | Section 40-10. The Historic Preservation Tax Credit Act is | ||||||
2 | amended by changing Sections 10 and 20 as follows: | ||||||
3 | (35 ILCS 31/10)
| ||||||
4 | Sec. 10. Allowable credit. | ||||||
5 | (a) To the extent authorized by this Act, for taxable | ||||||
6 | years beginning on or after January 1, 2019 and ending on or | ||||||
7 | before December 31, 2028 December 31, 2023 , there shall be | ||||||
8 | allowed a tax credit to the qualified taxpayer against the tax | ||||||
9 | imposed by subsections (a) and (b) of Section 201 of the | ||||||
10 | Illinois Income Tax Act in an aggregate amount equal to 25% of | ||||||
11 | qualified expenditures, but not to exceed $3,000,000, incurred | ||||||
12 | undertaking a qualified rehabilitation plan, provided that the | ||||||
13 | total amount of such expenditures must (i) equal $5,000 or | ||||||
14 | more and (ii) exceed the adjusted basis of the structure on the | ||||||
15 | first day the qualified rehabilitation plan commenced. If the | ||||||
16 | qualified rehabilitation plan spans multiple years, the | ||||||
17 | aggregate credit for the entire project shall be allowed in | ||||||
18 | the last taxable year. | ||||||
19 | (b) To obtain a tax credit certificate pursuant to this | ||||||
20 | Section, the qualified taxpayer must apply with the Division. | ||||||
21 | The Division shall determine the amount of eligible | ||||||
22 | rehabilitation expenditures within 45 days after receipt of a | ||||||
23 | complete application. The taxpayer must provide to the | ||||||
24 | Division a third-party cost certification conducted by a |
| |||||||
| |||||||
1 | certified public accountant verifying (i) the qualified and | ||||||
2 | non-qualified rehabilitation expenses and (ii) that the | ||||||
3 | qualified expenditures exceed the adjusted basis of the | ||||||
4 | structure on the first day the qualified rehabilitation plan | ||||||
5 | commenced. The accountant shall provide appropriate review and | ||||||
6 | testing of invoices. The Division is authorized, but not | ||||||
7 | required, to accept this third-party cost certification to | ||||||
8 | determine the amount of qualified expenditures. The Division | ||||||
9 | and the National Park Service shall determine whether the | ||||||
10 | rehabilitation is consistent with the Standards of the | ||||||
11 | Secretary of the United States Department of the Interior. | ||||||
12 | (c) If the amount of any tax credit awarded under this Act | ||||||
13 | exceeds the qualified taxpayer's income tax liability for the | ||||||
14 | year in which the qualified rehabilitation plan was placed in | ||||||
15 | service, the excess amount may be carried forward for | ||||||
16 | deduction from the taxpayer's income tax liability in the next | ||||||
17 | succeeding year or years until the total amount of the credit | ||||||
18 | has been used, except that a credit may not be carried forward | ||||||
19 | for deduction after the tenth taxable year after the taxable | ||||||
20 | year in which the qualified rehabilitation plan was placed in | ||||||
21 | service. Upon completion of the project and approval of the | ||||||
22 | complete application, the Division shall issue a single | ||||||
23 | certificate in the amount of the
eligible credits equal to 25% | ||||||
24 | of the qualified expenditures incurred during the eligible | ||||||
25 | taxable years, not to exceed the lesser of the allocated | ||||||
26 | amount or $3,000,000 per single qualified rehabilitation plan. |
| |||||||
| |||||||
1 | Prior to the issuance of the tax credit certificate, the | ||||||
2 | qualified taxpayer must provide to the Division verification | ||||||
3 | that the rehabilitated structure is a qualified historic | ||||||
4 | structure. At the time the certificate is issued, an issuance | ||||||
5 | fee up to the maximum amount of 2% of the amount of the credits | ||||||
6 | issued by the certificate may be collected from the qualified | ||||||
7 | taxpayer to administer the Act. If collected, this issuance | ||||||
8 | fee shall be directed to the Division Historic Property | ||||||
9 | Administrative Fund or other such fund as appropriate for use | ||||||
10 | of the Division in the administration of the Historic | ||||||
11 | Preservation Tax Credit Program. The taxpayer must attach the | ||||||
12 | certificate or legal documentation of her or his proportional | ||||||
13 | share of the certificate to the tax
return on which the credits | ||||||
14 | are to be claimed. The tax credit under this Section may not | ||||||
15 | reduce the taxpayer's liability to less than zero. If the | ||||||
16 | amount of the credit exceeds the tax liability for the year, | ||||||
17 | the excess credit may be carried forward and applied to the tax | ||||||
18 | liability of the 10 taxable years following the first excess | ||||||
19 | credit year. The taxpayer is not eligible to receive credits | ||||||
20 | under this Section and under Section 221 of the Illinois | ||||||
21 | Income Tax Act for the same qualified expenditures or | ||||||
22 | qualified rehabilitation plan. | ||||||
23 | (d) If the taxpayer is (i) a corporation having an | ||||||
24 | election in effect under Subchapter S of the federal Internal | ||||||
25 | Revenue Code, (ii) a partnership, or (iii) a limited liability | ||||||
26 | company, the credit provided under this Act may be claimed by |
| |||||||
| |||||||
1 | the shareholders of the corporation, the partners of the | ||||||
2 | partnership, or the members of the limited liability company | ||||||
3 | in the same manner as those shareholders, partners, or members | ||||||
4 | account for their proportionate shares of the income or losses | ||||||
5 | of the corporation, partnership, or limited liability company, | ||||||
6 | or as provided in the bylaws or other executed agreement of the | ||||||
7 | corporation, partnership, or limited liability company. | ||||||
8 | Credits granted to a partnership, a limited liability company | ||||||
9 | taxed as a partnership, or other multiple owners of property | ||||||
10 | shall be passed through to the partners, members, or owners | ||||||
11 | respectively on a pro rata basis or pursuant to an executed | ||||||
12 | agreement among the partners, members, or owners documenting | ||||||
13 | any alternate distribution method. | ||||||
14 | (e) If a recapture event occurs during the recapture | ||||||
15 | period with respect to a qualified historic structure, then | ||||||
16 | for any taxable year in which the credits are allowed as | ||||||
17 | specified in this Act, the tax under the applicable Section of | ||||||
18 | this Act shall be increased by applying the recapture | ||||||
19 | percentage set forth below to the tax decrease resulting from | ||||||
20 | the application of credits allowed under this Act to the | ||||||
21 | taxable year in question. | ||||||
22 | For the purposes of this subsection, the recapture | ||||||
23 | percentage shall be determined as follows: | ||||||
24 | (1) if the recapture event occurs within the first | ||||||
25 | year after commencement of the recapture period, then the | ||||||
26 | recapture percentage is 100%; |
| |||||||
| |||||||
1 | (2) if the recapture event occurs within the second | ||||||
2 | year after commencement of the recapture period, then the | ||||||
3 | recapture percentage is 80%; | ||||||
4 | (3) if the recapture event occurs within the third | ||||||
5 | year after commencement of the recapture period, then the | ||||||
6 | recapture percentage is 60%; | ||||||
7 | (4) if the recapture event occurs within the fourth | ||||||
8 | year after commencement of the recapture period, then the | ||||||
9 | recapture percentage is 40%; and | ||||||
10 | (5) if the recapture event occurs within the fifth | ||||||
11 | year after commencement of the recapture period, then the | ||||||
12 | recapture percentage is 20%.
| ||||||
13 | In the case of any recapture event, the carryforwards | ||||||
14 | under this Act shall be adjusted by reason of such event. | ||||||
15 | (f) The Division may adopt rules to implement this Section | ||||||
16 | in addition to the rules expressly authorized herein.
| ||||||
17 | (Source: P.A. 101-81, eff. 7-12-19; 102-741, eff. 5-6-22.) | ||||||
18 | (35 ILCS 31/20)
| ||||||
19 | Sec. 20. Limitations, reporting, and monitoring. | ||||||
20 | (a) In each every calendar year beginning on or after | ||||||
21 | January 1, 2019 and ending on or before December 31, 2023 that | ||||||
22 | this program is in effect , the Division is authorized to | ||||||
23 | allocate $15,000,000 in tax credits in addition to any | ||||||
24 | unallocated, returned, or rescinded allocations from previous | ||||||
25 | years, pursuant to qualified rehabilitation plans. In each |
| |||||||
| |||||||
1 | calendar year beginning on or after January 1, 2024 and ending | ||||||
2 | on or before December 31, 2028, the Division is authorized to | ||||||
3 | allocate $25,000,000 in tax credits in addition to any | ||||||
4 | unallocated, returned, or rescinded allocations from previous | ||||||
5 | years, pursuant to qualified rehabilitation plans. The | ||||||
6 | Division shall not allocate or award more than $3,000,000 in | ||||||
7 | tax credits with regard to a single qualified rehabilitation | ||||||
8 | plan. In allocating tax credits under this Act, the Division | ||||||
9 | must prioritize applications that meet one or more of the | ||||||
10 | following: | ||||||
11 | (1) the structure is located in a county that borders | ||||||
12 | a State with a historic income-producing property | ||||||
13 | rehabilitation credit; | ||||||
14 | (2) the structure was previously owned by a federal, | ||||||
15 | state, or local governmental entity for no less than 6 | ||||||
16 | months; | ||||||
17 | (3) the structure is located in a census tract that | ||||||
18 | has a median family income at or below the State median | ||||||
19 | family income; data from the most recent 5-year estimate | ||||||
20 | from the American Community Survey (ACS), published by the | ||||||
21 | U.S. Census Bureau, shall be used to determine | ||||||
22 | eligibility; | ||||||
23 | (4) the qualified rehabilitation plan includes in the | ||||||
24 | development partnership a Community Development Entity or | ||||||
25 | a low-profit (B Corporation) or not-for-profit | ||||||
26 | organization, as defined by Section 501(c)(3) of the |
| |||||||
| |||||||
1 | Internal Revenue Code; or | ||||||
2 | (5) the structure is located in an area declared under | ||||||
3 | an Emergency Declaration or Major Disaster Declaration | ||||||
4 | under the federal Robert T. Stafford Disaster Relief and | ||||||
5 | Emergency Assistance Act. The declaration must be no older | ||||||
6 | than 3 years at the time of application. | ||||||
7 | (b) The annual aggregate authorization of $15,000,000 set | ||||||
8 | forth in subsection (a) shall be allocated by the Division, in | ||||||
9 | such proportion as determined by the Director twice in each | ||||||
10 | calendar year that the program is in effect, provided that the | ||||||
11 | amount initially allocated by the Division for the first | ||||||
12 | calendar year application period shall not exceed 65% of the | ||||||
13 | total amount available for allocation. Any unallocated amount | ||||||
14 | remaining as of the end of the second application period of a | ||||||
15 | given calendar year shall be rolled over and added to the total | ||||||
16 | authorized amount for the next available calendar year. The | ||||||
17 | qualified rehabilitation plan must meet a readiness test, as | ||||||
18 | defined by the Division, in order for the application to | ||||||
19 | qualify. In any given application period, applications that | ||||||
20 | qualify under this Act will be prioritized as set forth in | ||||||
21 | subsection (a) and placed in a queue based on the date and time | ||||||
22 | the application is received. Applicants whose applications | ||||||
23 | qualify but do not receive an allocation must reapply to be | ||||||
24 | considered in subsequent application periods. | ||||||
25 | (c) Subject to appropriation to the Division, moneys in | ||||||
26 | the Historic Property Administrative Fund shall be used, on a |
| |||||||
| |||||||
1 | biennial basis, beginning at the end of the second fiscal year | ||||||
2 | after the effective date of this Act, to hire a qualified third | ||||||
3 | party to prepare a biennial report to assess the overall | ||||||
4 | impact of this Act from the qualified rehabilitation plans | ||||||
5 | under this Act completed in that year and in previous years. | ||||||
6 | Baseline data of the metrics in the report shall be collected | ||||||
7 | at the initiation of a qualified rehabilitation plan. The | ||||||
8 | overall economic impact shall include at least: | ||||||
9 | (1) the number of applications, project locations, and | ||||||
10 | proposed use of qualified historic structures; | ||||||
11 | (2) the amount of credits awarded and the number and | ||||||
12 | location of projects receiving credit allocations; | ||||||
13 | (3) the status of ongoing projects and projected | ||||||
14 | qualifying expenditures for ongoing projects;
| ||||||
15 | (4) for completed projects, the total amount of | ||||||
16 | qualifying rehabilitation expenditures and non-qualifying | ||||||
17 | expenditures, the number of housing units created and the | ||||||
18 | number of housing units that qualify as affordable, and | ||||||
19 | the total square footage rehabilitated and developed; | ||||||
20 | (5) direct, indirect, and induced economic impacts; | ||||||
21 | (6) temporary, permanent, and construction jobs | ||||||
22 | created; and | ||||||
23 | (7) sales, income, and property tax generation before | ||||||
24 | construction, during construction, and after completion. | ||||||
25 | The report to the General Assembly shall be filed with the | ||||||
26 | Clerk of the House of Representatives and the Secretary of the |
| |||||||
| |||||||
1 | Senate in electronic form only, in the manner that the Clerk | ||||||
2 | and the Secretary shall direct. | ||||||
3 | (d) Any time prior to issuance of a tax credit | ||||||
4 | certificate, the Director of the Division, the State Historic | ||||||
5 | Preservation Officer, or staff of the Division may, upon | ||||||
6 | reasonable notice of not less than 3 business days, conduct a | ||||||
7 | site visit to the project to inspect and evaluate the project. | ||||||
8 | (e) Any time prior to the issuance of a tax credit | ||||||
9 | certificate, the Director may, upon reasonable notice of not | ||||||
10 | less than 30 calendar days, request a status report from the | ||||||
11 | Applicant consisting of information and updates relevant to | ||||||
12 | the status of the project. Status reports shall not be | ||||||
13 | requested more than twice yearly. | ||||||
14 | (f) In order to demonstrate sufficient evidence of | ||||||
15 | reviewable progress within 12 months after the date the | ||||||
16 | Applicant received notification of allocation from the | ||||||
17 | Division, the Director may require the Applicant to provide | ||||||
18 | all of the following: | ||||||
19 | (1) a viable financial plan which demonstrates by way | ||||||
20 | of an executed agreement that all financing has been | ||||||
21 | secured for the project; such financing shall include, but | ||||||
22 | not be limited to, equity investment as demonstrated by | ||||||
23 | letters of commitment from the owner of the property, | ||||||
24 | investment partners, and equity investors; | ||||||
25 | (2) (blank); and | ||||||
26 | (3) all historic approvals, including all federal and |
| |||||||
| |||||||
1 | State rehabilitation documents required by the Division. | ||||||
2 | The Director shall review the submitted evidence and may | ||||||
3 | request additional documentation from the Applicant if | ||||||
4 | necessary. The Applicant will have 30 calendar days to provide | ||||||
5 | the information requested, otherwise the allocation may be | ||||||
6 | rescinded at the discretion of the Director. | ||||||
7 | (g) In order to demonstrate sufficient evidence of | ||||||
8 | reviewable progress within 24 months after the date the | ||||||
9 | application received notification of approval from the | ||||||
10 | Division, the Director may require the Applicant to provide | ||||||
11 | detailed evidence that the Applicant has secured and closed on | ||||||
12 | financing for the complete scope of rehabilitation for the | ||||||
13 | project. To demonstrate evidence that the Applicant has | ||||||
14 | secured and closed on financing, the Applicant will need to | ||||||
15 | provide signed and processed loan agreements, bank financing | ||||||
16 | documents or other legal and contractual evidence to | ||||||
17 | demonstrate that adequate financing is available to complete | ||||||
18 | the project. The Director shall review the submitted evidence | ||||||
19 | and may request additional documentation from the Applicant if | ||||||
20 | necessary. The Applicant will have 30 calendar days to provide | ||||||
21 | the information requested, otherwise the allocation may be | ||||||
22 | rescinded at the discretion of the Director. | ||||||
23 | If the Applicant fails to document reviewable progress | ||||||
24 | within 24 months of approval, the Director may notify the | ||||||
25 | Applicant that the allocation is rescinded. However, should | ||||||
26 | financing and construction be imminent, the Director may elect |
| |||||||
| |||||||
1 | to grant the Applicant no more than 5 months to close on | ||||||
2 | financing and commence construction. If the Applicant fails to | ||||||
3 | meet these conditions in the required timeframe, the Director | ||||||
4 | shall notify the Applicant that the allocation is rescinded. | ||||||
5 | Any such rescinded allocation shall be added to the aggregate | ||||||
6 | amount of credits available for allocation for the year in | ||||||
7 | which the forfeiture occurred. | ||||||
8 | The amount of the qualified expenditures identified in the | ||||||
9 | qualified taxpayer's certification of completion and reflected | ||||||
10 | on the Historic Preservation Tax Credit certificate issued by | ||||||
11 | the Director is subject to inspection, examination, and audit | ||||||
12 | by the Department of Revenue. | ||||||
13 | The qualified taxpayer shall establish and maintain for a | ||||||
14 | period of 4 years following the effective date on a project tax | ||||||
15 | credit certificate such records as required by the Director. | ||||||
16 | Such records include, but are not limited to, records | ||||||
17 | documenting project expenditures and compliance with the U.S. | ||||||
18 | Secretary of the Interior's Standards. The qualified taxpayer | ||||||
19 | shall make such records available for review and verification | ||||||
20 | by the Director, the State Historic Preservation Officer, the | ||||||
21 | Department of Revenue, or appropriate staff, as well as other | ||||||
22 | appropriate State agencies. In the event the Director | ||||||
23 | determines an Applicant has submitted a status report | ||||||
24 | containing erroneous information or data not supported by | ||||||
25 | records established and maintained under this Act, the | ||||||
26 | Director may, after providing notice, require the Applicant to |
| |||||||
| |||||||
1 | resubmit corrected reports.
| ||||||
2 | (Source: P.A. 102-741, eff. 5-6-22.) | ||||||
3 | ARTICLE 45. HIGH IMPACT BUSINESSES | ||||||
4 | Section 45-5. The Illinois Enterprise Zone Act is amended | ||||||
5 | by changing Section 5.5 as follows:
| ||||||
6 | (20 ILCS 655/5.5)
(from Ch. 67 1/2, par. 609.1)
| ||||||
7 | Sec. 5.5. High Impact Business.
| ||||||
8 | (a) In order to respond to unique opportunities to assist | ||||||
9 | in the
encouragement, development, growth, and expansion of | ||||||
10 | the private sector through
large scale investment and | ||||||
11 | development projects, the Department is authorized
to receive | ||||||
12 | and approve applications for the designation of "High Impact
| ||||||
13 | Businesses" in Illinois, for an initial term of 20 years with | ||||||
14 | an option for renewal for a term not to exceed 20 years, | ||||||
15 | subject to the following conditions:
| ||||||
16 | (1) such applications may be submitted at any time | ||||||
17 | during the year;
| ||||||
18 | (2) such business is not located, at the time of | ||||||
19 | designation, in
an enterprise zone designated pursuant to | ||||||
20 | this Act;
| ||||||
21 | (3) the business intends to do one or more of the | ||||||
22 | following:
| ||||||
23 | (A) the business intends to make a minimum |
| |||||||
| |||||||
1 | investment of
$12,000,000 which will be placed in | ||||||
2 | service in qualified property and
intends to create | ||||||
3 | 500 full-time equivalent jobs at a designated location
| ||||||
4 | in Illinois or intends to make a minimum investment of | ||||||
5 | $30,000,000 which
will be placed in service in | ||||||
6 | qualified property and intends to retain 1,500
| ||||||
7 | full-time retained jobs at a designated location in | ||||||
8 | Illinois.
The terms "placed in service" and
"qualified | ||||||
9 | property" have the same meanings as described in | ||||||
10 | subsection (h)
of Section 201 of the Illinois Income | ||||||
11 | Tax Act; or
| ||||||
12 | (B) the business intends to establish a new | ||||||
13 | electric generating
facility at a designated location | ||||||
14 | in Illinois. "New electric generating
facility", for | ||||||
15 | purposes of this Section, means a newly constructed
| ||||||
16 | electric
generation plant
or a newly constructed | ||||||
17 | generation capacity expansion at an existing electric
| ||||||
18 | generation
plant, including the transmission lines and | ||||||
19 | associated
equipment that transfers electricity from | ||||||
20 | points of supply to points of
delivery, and for which | ||||||
21 | such new foundation construction commenced not sooner
| ||||||
22 | than July 1,
2001. Such facility shall be designed to | ||||||
23 | provide baseload electric
generation and shall operate | ||||||
24 | on a continuous basis throughout the year;
and (i) | ||||||
25 | shall have an aggregate rated generating capacity of | ||||||
26 | at least 1,000
megawatts for all new units at one site |
| |||||||
| |||||||
1 | if it uses natural gas as its primary
fuel and | ||||||
2 | foundation construction of the facility is commenced | ||||||
3 | on
or before December 31, 2004, or shall have an | ||||||
4 | aggregate rated generating
capacity of at least 400 | ||||||
5 | megawatts for all new units at one site if it uses
coal | ||||||
6 | or gases derived from coal
as its primary fuel and
| ||||||
7 | shall support the creation of at least 150 new | ||||||
8 | Illinois coal mining jobs, or
(ii) shall be funded | ||||||
9 | through a federal Department of Energy grant before | ||||||
10 | December 31, 2010 and shall support the creation of | ||||||
11 | Illinois
coal-mining
jobs, or (iii) shall use coal | ||||||
12 | gasification or integrated gasification-combined cycle | ||||||
13 | units
that generate
electricity or chemicals, or both, | ||||||
14 | and shall support the creation of Illinois
coal-mining
| ||||||
15 | jobs.
The term "placed in service" has
the same | ||||||
16 | meaning as described in subsection
(h) of Section 201 | ||||||
17 | of the Illinois Income Tax Act; or
| ||||||
18 | (B-5) the business intends to establish a new | ||||||
19 | gasification
facility at a designated location in | ||||||
20 | Illinois. As used in this Section, "new gasification | ||||||
21 | facility" means a newly constructed coal gasification | ||||||
22 | facility that generates chemical feedstocks or | ||||||
23 | transportation fuels derived from coal (which may | ||||||
24 | include, but are not limited to, methane, methanol, | ||||||
25 | and nitrogen fertilizer), that supports the creation | ||||||
26 | or retention of Illinois coal-mining jobs, and that |
| |||||||
| |||||||
1 | qualifies for financial assistance from the Department | ||||||
2 | before December 31, 2010. A new gasification facility | ||||||
3 | does not include a pilot project located within | ||||||
4 | Jefferson County or within a county adjacent to | ||||||
5 | Jefferson County for synthetic natural gas from coal; | ||||||
6 | or | ||||||
7 | (C) the business intends to establish
production | ||||||
8 | operations at a new coal mine, re-establish production | ||||||
9 | operations at
a closed coal mine, or expand production | ||||||
10 | at an existing coal mine
at a designated location in | ||||||
11 | Illinois not sooner than July 1, 2001;
provided that | ||||||
12 | the
production operations result in the creation of | ||||||
13 | 150 new Illinois coal mining
jobs as described in | ||||||
14 | subdivision (a)(3)(B) of this Section, and further
| ||||||
15 | provided that the coal extracted from such mine is | ||||||
16 | utilized as the predominant
source for a new electric | ||||||
17 | generating facility.
The term "placed in service" has
| ||||||
18 | the same meaning as described in subsection (h) of | ||||||
19 | Section 201 of the
Illinois Income Tax Act; or
| ||||||
20 | (D) the business intends to construct new | ||||||
21 | transmission facilities or
upgrade existing | ||||||
22 | transmission facilities at designated locations in | ||||||
23 | Illinois,
for which construction commenced not sooner | ||||||
24 | than July 1, 2001. For the
purposes of this Section, | ||||||
25 | "transmission facilities" means transmission lines
| ||||||
26 | with a voltage rating of 115 kilovolts or above, |
| |||||||
| |||||||
1 | including associated
equipment, that transfer | ||||||
2 | electricity from points of supply to points of
| ||||||
3 | delivery and that transmit a majority of the | ||||||
4 | electricity generated by a new
electric generating | ||||||
5 | facility designated as a High Impact Business in | ||||||
6 | accordance
with this Section. The term "placed in | ||||||
7 | service" has the
same meaning as described in | ||||||
8 | subsection (h) of Section 201 of the Illinois
Income | ||||||
9 | Tax Act; or
| ||||||
10 | (E) the business intends to establish a new wind | ||||||
11 | power facility at a designated location in Illinois. | ||||||
12 | For purposes of this Section, "new wind power | ||||||
13 | facility" means a newly constructed electric | ||||||
14 | generation facility, a newly constructed expansion of | ||||||
15 | an existing electric generation facility, or the | ||||||
16 | replacement of an existing electric generation | ||||||
17 | facility, including the demolition and removal of an | ||||||
18 | electric generation facility irrespective of whether | ||||||
19 | it will be replaced, placed in service or replaced on | ||||||
20 | or after July 1, 2009, that generates electricity | ||||||
21 | using wind energy devices, and such facility shall be | ||||||
22 | deemed to include any permanent structures associated | ||||||
23 | with the electric generation facility and all | ||||||
24 | associated transmission lines, substations, and other | ||||||
25 | equipment related to the generation of electricity | ||||||
26 | from wind energy devices. For purposes of this |
| |||||||
| |||||||
1 | Section, "wind energy device" means any device, with a | ||||||
2 | nameplate capacity of at least 0.5 megawatts, that is | ||||||
3 | used in the process of converting kinetic energy from | ||||||
4 | the wind to generate electricity; or | ||||||
5 | (E-5) the business intends to establish a new | ||||||
6 | utility-scale solar facility at a designated location | ||||||
7 | in Illinois. For purposes of this Section, "new | ||||||
8 | utility-scale solar power facility" means a newly | ||||||
9 | constructed electric generation facility, or a newly | ||||||
10 | constructed expansion of an existing electric | ||||||
11 | generation facility, placed in service on or after | ||||||
12 | July 1, 2021, that (i) generates electricity using | ||||||
13 | photovoltaic cells and (ii) has a nameplate capacity | ||||||
14 | that is greater than 5,000 kilowatts, and such | ||||||
15 | facility shall be deemed to include all associated | ||||||
16 | transmission lines, substations, energy storage | ||||||
17 | facilities, and other equipment related to the | ||||||
18 | generation and storage of electricity from | ||||||
19 | photovoltaic cells; or | ||||||
20 | (F) the business commits to (i) make a minimum | ||||||
21 | investment of $500,000,000, which will be placed in | ||||||
22 | service in a qualified property, (ii) create 125 | ||||||
23 | full-time equivalent jobs at a designated location in | ||||||
24 | Illinois, (iii) establish a fertilizer plant at a | ||||||
25 | designated location in Illinois that complies with the | ||||||
26 | set-back standards as described in Table 1: Initial |
| |||||||
| |||||||
1 | Isolation and Protective Action Distances in the 2012 | ||||||
2 | Emergency Response Guidebook published by the United | ||||||
3 | States Department of Transportation, (iv) pay a | ||||||
4 | prevailing wage for employees at that location who are | ||||||
5 | engaged in construction activities, and (v) secure an | ||||||
6 | appropriate level of general liability insurance to | ||||||
7 | protect against catastrophic failure of the fertilizer | ||||||
8 | plant or any of its constituent systems; in addition, | ||||||
9 | the business must agree to enter into a construction | ||||||
10 | project labor agreement including provisions | ||||||
11 | establishing wages, benefits, and other compensation | ||||||
12 | for employees performing work under the project labor | ||||||
13 | agreement at that location; for the purposes of this | ||||||
14 | Section, "fertilizer plant" means a newly constructed | ||||||
15 | or upgraded plant utilizing gas used in the production | ||||||
16 | of anhydrous ammonia and downstream nitrogen | ||||||
17 | fertilizer products for resale; for the purposes of | ||||||
18 | this Section, "prevailing wage" means the hourly cash | ||||||
19 | wages plus fringe benefits for training and
| ||||||
20 | apprenticeship programs approved by the U.S. | ||||||
21 | Department of Labor, Bureau of
Apprenticeship and | ||||||
22 | Training, health and welfare, insurance, vacations and
| ||||||
23 | pensions paid generally, in the
locality in which the | ||||||
24 | work is being performed, to employees engaged in
work | ||||||
25 | of a similar character on public works; this paragraph | ||||||
26 | (F) applies only to businesses that submit an |
| |||||||
| |||||||
1 | application to the Department within 60 days after | ||||||
2 | July 25, 2013 (the effective date of Public Act | ||||||
3 | 98-109); or and | ||||||
4 | (G) the business intends to establish a new | ||||||
5 | cultured cell material food production facility at a | ||||||
6 | designated location in Illinois. As used in this | ||||||
7 | paragraph (G): | ||||||
8 | "Cultured cell material food production facility" | ||||||
9 | means a facility (i) at which cultured animal cell | ||||||
10 | food is developed using animal cell culture | ||||||
11 | technology, (ii) at which production processes occur | ||||||
12 | that include the establishment of cell lines and cell | ||||||
13 | banks, manufacturing controls, and all components and | ||||||
14 | inputs, and (iii) that complies with all existing | ||||||
15 | registrations, inspections, licensing, and approvals | ||||||
16 | from all applicable and participating State and | ||||||
17 | federal food agencies, including the Department of | ||||||
18 | Agriculture, the Department of Public Health, and the | ||||||
19 | United States Food and Drug Administration, to ensure | ||||||
20 | that all food production is safe and lawful under | ||||||
21 | provisions of the Federal Food, Drug and Cosmetic Act | ||||||
22 | related to the development, production, and storage of | ||||||
23 | cultured animal cell food. | ||||||
24 | "New cultured cell material food production | ||||||
25 | facility" means a newly constructed cultured cell | ||||||
26 | material food production facility that is placed in |
| |||||||
| |||||||
1 | service on or after the effective date of this | ||||||
2 | amendatory Act of the 103rd General Assembly or a | ||||||
3 | newly constructed expansion of an existing cultured | ||||||
4 | cell material food production facility, in a | ||||||
5 | controlled environment, when the improvements are | ||||||
6 | placed in service on or after the effective date of | ||||||
7 | this amendatory Act of the 103rd General Assembly; and | ||||||
8 | (4) no later than 90 days after an application is | ||||||
9 | submitted, the
Department shall notify the applicant of | ||||||
10 | the Department's determination of
the qualification of the | ||||||
11 | proposed High Impact Business under this Section.
| ||||||
12 | (b) Businesses designated as High Impact Businesses | ||||||
13 | pursuant to
subdivision (a)(3)(A) of this Section shall | ||||||
14 | qualify for the credits and
exemptions described in the
| ||||||
15 | following Acts: Section 9-222 and Section 9-222.1A of the | ||||||
16 | Public Utilities
Act,
subsection (h)
of Section 201 of the | ||||||
17 | Illinois Income Tax Act,
and Section 1d of
the
Retailers' | ||||||
18 | Occupation Tax Act; provided that these credits and
exemptions
| ||||||
19 | described in these Acts shall not be authorized until the | ||||||
20 | minimum
investments set forth in subdivision (a)(3)(A) of this
| ||||||
21 | Section have been placed in
service in qualified properties | ||||||
22 | and, in the case of the exemptions
described in the Public | ||||||
23 | Utilities Act and Section 1d of the Retailers'
Occupation Tax | ||||||
24 | Act, the minimum full-time equivalent jobs or full-time | ||||||
25 | retained jobs set
forth in subdivision (a)(3)(A) of this | ||||||
26 | Section have been
created or retained.
Businesses designated |
| |||||||
| |||||||
1 | as High Impact Businesses under
this Section shall also
| ||||||
2 | qualify for the exemption described in Section 5l of the | ||||||
3 | Retailers' Occupation
Tax Act. The credit provided in | ||||||
4 | subsection (h) of Section 201 of the Illinois
Income Tax Act | ||||||
5 | shall be applicable to investments in qualified property as | ||||||
6 | set
forth in subdivision (a)(3)(A) of this Section.
| ||||||
7 | (b-5) Businesses designated as High Impact Businesses | ||||||
8 | pursuant to
subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C), | ||||||
9 | and (a)(3)(D) , and (a)(3)(G) of this Section shall qualify
for | ||||||
10 | the credits and exemptions described in the following Acts: | ||||||
11 | Section 51 of
the Retailers' Occupation Tax Act, Section 9-222 | ||||||
12 | and Section 9-222.1A of the
Public Utilities Act, and | ||||||
13 | subsection (h) of Section 201 of the Illinois Income
Tax Act; | ||||||
14 | however, the credits and exemptions authorized under Section | ||||||
15 | 9-222 and
Section 9-222.1A of the Public Utilities Act, and | ||||||
16 | subsection (h) of Section 201
of the Illinois Income Tax Act | ||||||
17 | shall not be authorized until the new electric
generating | ||||||
18 | facility, the new gasification facility, the new transmission | ||||||
19 | facility, or the new, expanded, or
reopened coal mine , or the | ||||||
20 | new cultured cell material food production facility is | ||||||
21 | operational,
except that a new electric generating facility | ||||||
22 | whose primary fuel source is
natural gas is eligible only for | ||||||
23 | the exemption under Section 5l of the
Retailers' Occupation | ||||||
24 | Tax Act.
| ||||||
25 | (b-6) Businesses designated as High Impact Businesses | ||||||
26 | pursuant to subdivision (a)(3)(E) or (a)(3)(E-5) of this |
| |||||||
| |||||||
1 | Section shall qualify for the exemptions described in Section | ||||||
2 | 5l of the Retailers' Occupation Tax Act; any business so | ||||||
3 | designated as a High Impact Business being, for purposes of | ||||||
4 | this Section, a "Wind Energy Business". | ||||||
5 | (b-7) Beginning on January 1, 2021, businesses designated | ||||||
6 | as High Impact Businesses by the Department shall qualify for | ||||||
7 | the High Impact Business construction jobs credit under | ||||||
8 | subsection (h-5) of Section 201 of the Illinois Income Tax Act | ||||||
9 | if the business meets the criteria set forth in subsection (i) | ||||||
10 | of this Section. The total aggregate amount of credits awarded | ||||||
11 | under the Blue Collar Jobs Act (Article 20 of Public Act 101-9) | ||||||
12 | shall not exceed $20,000,000 in any State fiscal year. | ||||||
13 | (c) High Impact Businesses located in federally designated | ||||||
14 | foreign trade
zones or sub-zones are also eligible for | ||||||
15 | additional credits, exemptions and
deductions as described in | ||||||
16 | the following Acts: Section 9-221 and Section
9-222.1 of the | ||||||
17 | Public
Utilities Act; and subsection (g) of Section 201, and | ||||||
18 | Section 203
of the Illinois Income Tax Act.
| ||||||
19 | (d) Except for businesses contemplated under subdivision | ||||||
20 | (a)(3)(E) , or (a)(3)(E-5) , or (a)(3)(G) of this Section, | ||||||
21 | existing Illinois businesses which apply for designation as a
| ||||||
22 | High Impact Business must provide the Department with the | ||||||
23 | prospective plan
for which 1,500 full-time retained jobs would | ||||||
24 | be eliminated in the event that the
business is not | ||||||
25 | designated.
| ||||||
26 | (e) Except for new businesses wind power facilities |
| |||||||
| |||||||
1 | contemplated under subdivision (a)(3)(E) or subdivision | ||||||
2 | (a)(3)(G) of this Section, new proposed facilities which apply | ||||||
3 | for designation as High Impact
Business must provide the | ||||||
4 | Department with proof of alternative non-Illinois
sites which | ||||||
5 | would receive the proposed investment and job creation in the
| ||||||
6 | event that the business is not designated as a High Impact | ||||||
7 | Business.
| ||||||
8 | (f) Except for businesses contemplated under subdivision | ||||||
9 | (a)(3)(E) or subdivision (a)(3)(G) of this Section, in the | ||||||
10 | event that a business is designated a High Impact Business
and | ||||||
11 | it is later determined after reasonable notice and an | ||||||
12 | opportunity for a
hearing as provided under the Illinois | ||||||
13 | Administrative Procedure Act, that
the business would have | ||||||
14 | placed in service in qualified property the
investments and | ||||||
15 | created or retained the requisite number of jobs without
the | ||||||
16 | benefits of the High Impact Business designation, the | ||||||
17 | Department shall
be required to immediately revoke the | ||||||
18 | designation and notify the Director
of the Department of | ||||||
19 | Revenue who shall begin proceedings to recover all
wrongfully | ||||||
20 | exempted State taxes with interest. The business shall also be
| ||||||
21 | ineligible for all State funded Department programs for a | ||||||
22 | period of 10 years.
| ||||||
23 | (g) The Department shall revoke a High Impact Business | ||||||
24 | designation if
the participating business fails to comply with | ||||||
25 | the terms and conditions of
the designation.
| ||||||
26 | (h) Prior to designating a business, the Department shall |
| |||||||
| |||||||
1 | provide the
members of the General Assembly and Commission on | ||||||
2 | Government Forecasting and Accountability
with a report | ||||||
3 | setting forth the terms and conditions of the designation and
| ||||||
4 | guarantees that have been received by the Department in | ||||||
5 | relation to the
proposed business being designated.
| ||||||
6 | (i) High Impact Business construction jobs credit. | ||||||
7 | Beginning on January 1, 2021, a High Impact Business may | ||||||
8 | receive a tax credit against the tax imposed under subsections | ||||||
9 | (a) and (b) of Section 201 of the Illinois Income Tax Act in an | ||||||
10 | amount equal to 50% of the amount of the incremental income tax | ||||||
11 | attributable to High Impact Business construction jobs credit | ||||||
12 | employees employed in the course of completing a High Impact | ||||||
13 | Business construction jobs project. However, the High Impact | ||||||
14 | Business construction jobs credit may equal 75% of the amount | ||||||
15 | of the incremental income tax attributable to High Impact | ||||||
16 | Business construction jobs credit employees if the High Impact | ||||||
17 | Business construction jobs credit project is located in an | ||||||
18 | underserved area. | ||||||
19 | The Department shall certify to the Department of Revenue: | ||||||
20 | (1) the identity of taxpayers that are eligible for the High | ||||||
21 | Impact Business construction jobs credit; and (2) the amount | ||||||
22 | of High Impact Business construction jobs credits that are | ||||||
23 | claimed pursuant to subsection (h-5) of Section 201 of the | ||||||
24 | Illinois Income Tax Act in each taxable year. Any business | ||||||
25 | entity that receives a High Impact Business construction jobs | ||||||
26 | credit shall maintain a certified payroll pursuant to |
| |||||||
| |||||||
1 | subsection (j) of this Section. | ||||||
2 | As used in this subsection (i): | ||||||
3 | "High Impact Business construction jobs credit" means an | ||||||
4 | amount equal to 50% (or 75% if the High Impact Business | ||||||
5 | construction project is located in an underserved area) of the | ||||||
6 | incremental income tax attributable to High Impact Business | ||||||
7 | construction job employees. The total aggregate amount of | ||||||
8 | credits awarded under the Blue Collar Jobs Act (Article 20 of | ||||||
9 | Public Act 101-9) shall not exceed $20,000,000 in any State | ||||||
10 | fiscal year | ||||||
11 | "High Impact Business construction job employee" means a | ||||||
12 | laborer or worker who is employed by an Illinois contractor or | ||||||
13 | subcontractor in the actual construction work on the site of a | ||||||
14 | High Impact Business construction job project. | ||||||
15 | "High Impact Business construction jobs project" means | ||||||
16 | building a structure or building or making improvements of any | ||||||
17 | kind to real property, undertaken and commissioned by a | ||||||
18 | business that was designated as a High Impact Business by the | ||||||
19 | Department. The term "High Impact Business construction jobs | ||||||
20 | project" does not include the routine operation, routine | ||||||
21 | repair, or routine maintenance of existing structures, | ||||||
22 | buildings, or real property. | ||||||
23 | "Incremental income tax" means the total amount withheld | ||||||
24 | during the taxable year from the compensation of High Impact | ||||||
25 | Business construction job employees. | ||||||
26 | "Underserved area" means a geographic area that meets one |
| |||||||
| |||||||
1 | or more of the following conditions: | ||||||
2 | (1) the area has a poverty rate of at least 20% | ||||||
3 | according to the latest American Community Survey; | ||||||
4 | (2) 35% or more of the families with children in the | ||||||
5 | area are living below 130% of the poverty line, according | ||||||
6 | to the latest American Community Survey; | ||||||
7 | (3) at least 20% of the households in the area receive | ||||||
8 | assistance under the Supplemental Nutrition Assistance | ||||||
9 | Program (SNAP); or | ||||||
10 | (4) the area has an average unemployment rate, as | ||||||
11 | determined by the Illinois Department of Employment | ||||||
12 | Security, that is more than 120% of the national | ||||||
13 | unemployment average, as determined by the U.S. Department | ||||||
14 | of Labor, for a period of at least 2 consecutive calendar | ||||||
15 | years preceding the date of the application. | ||||||
16 | (j) Each contractor and subcontractor who is engaged in | ||||||
17 | and executing a High Impact Business Construction jobs | ||||||
18 | project, as defined under subsection (i) of this Section, for | ||||||
19 | a business that is entitled to a credit pursuant to subsection | ||||||
20 | (i) of this Section shall: | ||||||
21 | (1) make and keep, for a period of 5 years from the | ||||||
22 | date of the last payment made on or after June 5, 2019 (the | ||||||
23 | effective date of Public Act 101-9) on a contract or | ||||||
24 | subcontract for a High Impact Business Construction Jobs | ||||||
25 | Project, records for all laborers and other workers | ||||||
26 | employed by the contractor or subcontractor on the |
| |||||||
| |||||||
1 | project; the records shall include: | ||||||
2 | (A) the worker's name; | ||||||
3 | (B) the worker's address; | ||||||
4 | (C) the worker's telephone number, if available; | ||||||
5 | (D) the worker's social security number; | ||||||
6 | (E) the worker's classification or | ||||||
7 | classifications; | ||||||
8 | (F) the worker's gross and net wages paid in each | ||||||
9 | pay period; | ||||||
10 | (G) the worker's number of hours worked each day; | ||||||
11 | (H) the worker's starting and ending times of work | ||||||
12 | each day; | ||||||
13 | (I) the worker's hourly wage rate; | ||||||
14 | (J) the worker's hourly overtime wage rate; | ||||||
15 | (K) the worker's race and ethnicity; and | ||||||
16 | (L) the worker's gender; | ||||||
17 | (2) no later than the 15th day of each calendar month, | ||||||
18 | provide a certified payroll for the immediately preceding | ||||||
19 | month to the taxpayer in charge of the High Impact | ||||||
20 | Business construction jobs project; within 5 business days | ||||||
21 | after receiving the certified payroll, the taxpayer shall | ||||||
22 | file the certified payroll with the Department of Labor | ||||||
23 | and the Department of Commerce and Economic Opportunity; a | ||||||
24 | certified payroll must be filed for only those calendar | ||||||
25 | months during which construction on a High Impact Business | ||||||
26 | construction jobs project has occurred; the certified |
| |||||||
| |||||||
1 | payroll shall consist of a complete copy of the records | ||||||
2 | identified in paragraph (1) of this subsection (j), but | ||||||
3 | may exclude the starting and ending times of work each | ||||||
4 | day; the certified payroll shall be accompanied by a | ||||||
5 | statement signed by the contractor or subcontractor or an | ||||||
6 | officer, employee, or agent of the contractor or | ||||||
7 | subcontractor which avers that: | ||||||
8 | (A) he or she has examined the certified payroll | ||||||
9 | records required to be submitted by the Act and such | ||||||
10 | records are true and accurate; and | ||||||
11 | (B) the contractor or subcontractor is aware that | ||||||
12 | filing a certified payroll that he or she knows to be | ||||||
13 | false is a Class A misdemeanor. | ||||||
14 | A general contractor is not prohibited from relying on a | ||||||
15 | certified payroll of a lower-tier subcontractor, provided the | ||||||
16 | general contractor does not knowingly rely upon a | ||||||
17 | subcontractor's false certification. | ||||||
18 | Any contractor or subcontractor subject to this | ||||||
19 | subsection, and any officer, employee, or agent of such | ||||||
20 | contractor or subcontractor whose duty as an officer, | ||||||
21 | employee, or agent it is to file a certified payroll under this | ||||||
22 | subsection, who willfully fails to file such a certified | ||||||
23 | payroll on or before the date such certified payroll is | ||||||
24 | required by this paragraph to be filed and any person who | ||||||
25 | willfully files a false certified payroll that is false as to | ||||||
26 | any material fact is in violation of this Act and guilty of a |
| |||||||
| |||||||
1 | Class A misdemeanor. | ||||||
2 | The taxpayer in charge of the project shall keep the | ||||||
3 | records submitted in accordance with this subsection on or | ||||||
4 | after June 5, 2019 (the effective date of Public Act 101-9) for | ||||||
5 | a period of 5 years from the date of the last payment for work | ||||||
6 | on a contract or subcontract for the High Impact Business | ||||||
7 | construction jobs project. | ||||||
8 | The records submitted in accordance with this subsection | ||||||
9 | shall be considered public records, except an employee's | ||||||
10 | address, telephone number, and social security number, and | ||||||
11 | made available in accordance with the Freedom of Information | ||||||
12 | Act. The Department of Labor shall share the information with | ||||||
13 | the Department in order to comply with the awarding of a High | ||||||
14 | Impact Business construction jobs credit. A contractor, | ||||||
15 | subcontractor, or public body may retain records required | ||||||
16 | under this Section in paper or electronic format. | ||||||
17 | (k) Upon 7 business days' notice, each contractor and | ||||||
18 | subcontractor shall make available for inspection and copying | ||||||
19 | at a location within this State during reasonable hours, the | ||||||
20 | records identified in this subsection (j) to the taxpayer in | ||||||
21 | charge of the High Impact Business construction jobs project, | ||||||
22 | its officers and agents, the Director of the Department of | ||||||
23 | Labor and his or her deputies and agents, and to federal, | ||||||
24 | State, or local law enforcement agencies and prosecutors. | ||||||
25 | (l) The changes made to this Section by this amendatory | ||||||
26 | Act of the 102nd General Assembly, other than the changes in |
| |||||||
| |||||||
1 | subsection (a), apply to high impact businesses that submit | ||||||
2 | applications on or after the effective date of this amendatory | ||||||
3 | Act of the 102nd General Assembly. | ||||||
4 | (Source: P.A. 101-9, eff. 6-5-19; 102-108, eff. 1-1-22; | ||||||
5 | 102-558, eff. 8-20-21; 102-605, eff. 8-27-21; 102-662, eff. | ||||||
6 | 9-15-21; 102-673, eff. 11-30-21; 102-813, eff. 5-13-22; | ||||||
7 | 102-1125, eff. 2-3-23.)
| ||||||
8 | Section 45-10. The Economic Development for a Growing | ||||||
9 | Economy Tax Credit Act is amended by changing Sections 5-5 and | ||||||
10 | 5-15 as follows:
| ||||||
11 | (35 ILCS 10/5-5)
| ||||||
12 | Sec. 5-5. Definitions. As used in this Act:
| ||||||
13 | "Agreement" means the Agreement between a Taxpayer and the | ||||||
14 | Department under
the provisions of Section 5-50 of this Act.
| ||||||
15 | "Applicant" means a Taxpayer that is operating a business | ||||||
16 | located or that
the Taxpayer plans to locate within the State | ||||||
17 | of Illinois and that is engaged
in interstate or intrastate | ||||||
18 | commerce for the purpose of manufacturing,
processing, | ||||||
19 | assembling, warehousing, or distributing products, conducting
| ||||||
20 | research and development, providing tourism services, or | ||||||
21 | providing services
in interstate commerce, office industries, | ||||||
22 | or agricultural processing, but
excluding retail, retail food, | ||||||
23 | health, or professional services.
"Applicant" does not include | ||||||
24 | a Taxpayer who closes or
substantially reduces an operation at |
| |||||||
| |||||||
1 | one location in the State and relocates
substantially the same | ||||||
2 | operation to another location in the State. This does
not | ||||||
3 | prohibit a Taxpayer from expanding its operations at another | ||||||
4 | location in
the State, provided that existing operations of a | ||||||
5 | similar nature located within
the State are not closed or | ||||||
6 | substantially reduced. This also does not prohibit
a Taxpayer | ||||||
7 | from moving its operations from one location in the State to | ||||||
8 | another
location in the State for the purpose of expanding the | ||||||
9 | operation provided that
the Department determines that | ||||||
10 | expansion cannot reasonably be accommodated
within the | ||||||
11 | municipality in which the business is located, or in the case | ||||||
12 | of a
business located in an incorporated area of the county, | ||||||
13 | within the county in
which the business is located, after | ||||||
14 | conferring with the chief elected
official of the municipality | ||||||
15 | or county and taking into consideration any
evidence offered | ||||||
16 | by the municipality or county regarding the ability to
| ||||||
17 | accommodate expansion within the municipality or county.
| ||||||
18 | "Credit" means the amount agreed to between the Department | ||||||
19 | and Applicant
under this Act, but not to exceed the lesser of: | ||||||
20 | (1) the sum of (i) 50% of the Incremental Income Tax | ||||||
21 | attributable to
New Employees at the Applicant's project and | ||||||
22 | (ii) 10% of the training costs of New Employees; or (2) 100% of | ||||||
23 | the Incremental Income Tax attributable to
New Employees at | ||||||
24 | the Applicant's project. However, if the project is located in | ||||||
25 | an underserved area, then the amount of the Credit may not | ||||||
26 | exceed the lesser of: (1) the sum of (i) 75% of the Incremental |
| |||||||
| |||||||
1 | Income Tax attributable to
New Employees at the Applicant's | ||||||
2 | project and (ii) 10% of the training costs of New Employees; or | ||||||
3 | (2) 100% of the Incremental Income Tax attributable to
New | ||||||
4 | Employees at the Applicant's project. If the project is not | ||||||
5 | located in an underserved area and the Applicant agrees to | ||||||
6 | hire the required number of New Employees, then the maximum | ||||||
7 | amount of the Credit for that Applicant may be increased by an | ||||||
8 | amount not to exceed 25% of the Incremental Income Tax | ||||||
9 | attributable to retained employees at the Applicant's project. | ||||||
10 | If the project is located in an underserved area and the | ||||||
11 | Applicant agrees to hire the required number of New Employees, | ||||||
12 | then the maximum amount of the credit for that Applicant may be | ||||||
13 | increased by an amount not to exceed 50% of the Incremental | ||||||
14 | Income Tax attributable to retained employees at the | ||||||
15 | Applicant's project.
| ||||||
16 | "Department" means the Department of Commerce and Economic | ||||||
17 | Opportunity.
| ||||||
18 | "Director" means the Director of Commerce and Economic | ||||||
19 | Opportunity.
| ||||||
20 | "Full-time Employee" means an individual who is employed | ||||||
21 | for consideration
for at least 35 hours each week or who | ||||||
22 | renders any other standard of service
generally accepted by | ||||||
23 | industry custom or practice as full-time employment. An | ||||||
24 | individual for whom a W-2 is issued by a Professional Employer | ||||||
25 | Organization (PEO) is a full-time employee if employed in the | ||||||
26 | service of the Applicant for consideration for at least 35 |
| |||||||
| |||||||
1 | hours each week or who renders any other standard of service | ||||||
2 | generally accepted by industry custom or practice as full-time | ||||||
3 | employment to Applicant.
| ||||||
4 | "Incremental Income Tax" means the total amount withheld | ||||||
5 | during the taxable
year from the compensation of New Employees | ||||||
6 | and, if applicable, retained employees under Article 7 of the | ||||||
7 | Illinois
Income Tax Act arising from employment at a project | ||||||
8 | that is the subject of an
Agreement.
| ||||||
9 | "New Construction EDGE Agreement" means the Agreement | ||||||
10 | between a Taxpayer and the Department under the provisions of | ||||||
11 | Section 5-51 of this Act. | ||||||
12 | "New Construction EDGE Credit" means an amount agreed to | ||||||
13 | between the Department and the Applicant under this Act as | ||||||
14 | part of a New Construction EDGE Agreement that does not exceed | ||||||
15 | 50% of the Incremental Income Tax attributable to New | ||||||
16 | Construction EDGE Employees at the Applicant's project; | ||||||
17 | however, if the New Construction EDGE Project is located in an | ||||||
18 | underserved area, then the amount of the New Construction EDGE | ||||||
19 | Credit may not exceed 75% of the Incremental Income Tax | ||||||
20 | attributable to New Construction EDGE Employees at the | ||||||
21 | Applicant's New Construction EDGE Project. | ||||||
22 | "New Construction EDGE Employee" means a laborer or worker | ||||||
23 | who is employed by an Illinois contractor or subcontractor in | ||||||
24 | the actual construction work on the site of a New Construction | ||||||
25 | EDGE Project, pursuant to a New Construction EDGE Agreement. | ||||||
26 | "New Construction EDGE Incremental Income Tax" means the |
| |||||||
| |||||||
1 | total amount withheld during the taxable year from the | ||||||
2 | compensation of New Construction EDGE Employees. | ||||||
3 | "New Construction EDGE Project" means the building of a | ||||||
4 | Taxpayer's structure or building, or making improvements of | ||||||
5 | any kind to real property. "New Construction EDGE Project" | ||||||
6 | does not include the routine operation, routine repair, or | ||||||
7 | routine maintenance of existing structures, buildings, or real | ||||||
8 | property. | ||||||
9 | "New Employee" means:
| ||||||
10 | (a) A Full-time Employee first employed by a Taxpayer | ||||||
11 | in the project
that is the subject of an Agreement and who | ||||||
12 | is hired after the Taxpayer
enters into the tax credit | ||||||
13 | Agreement.
| ||||||
14 | (b) The term "New Employee" does not include:
| ||||||
15 | (1) an employee of the Taxpayer who performs a job | ||||||
16 | that was previously
performed by another employee, if | ||||||
17 | that job existed for at least 6
months before hiring | ||||||
18 | the employee;
| ||||||
19 | (2) an employee of the Taxpayer who was previously | ||||||
20 | employed in
Illinois by a Related Member of the | ||||||
21 | Taxpayer and whose employment was
shifted to the | ||||||
22 | Taxpayer after the Taxpayer entered into the tax | ||||||
23 | credit
Agreement; or
| ||||||
24 | (3) a child, grandchild, parent, or spouse, other | ||||||
25 | than a spouse who
is legally separated from the | ||||||
26 | individual, of any individual who has a direct
or an |
| |||||||
| |||||||
1 | indirect ownership interest of at least 5% in the | ||||||
2 | profits, capital, or
value of the Taxpayer.
| ||||||
3 | (c) Notwithstanding paragraph (1) of subsection (b), | ||||||
4 | an employee may be
considered a New Employee under the | ||||||
5 | Agreement if the employee performs a job
that was | ||||||
6 | previously performed by an employee who was:
| ||||||
7 | (1) treated under the Agreement as a New Employee; | ||||||
8 | and
| ||||||
9 | (2) promoted by the Taxpayer to another job.
| ||||||
10 | (d) Notwithstanding subsection (a), the Department may | ||||||
11 | award Credit to an
Applicant with respect to an employee | ||||||
12 | hired prior to the date of the Agreement
if:
| ||||||
13 | (1) the Applicant is in receipt of a letter from | ||||||
14 | the Department stating
an
intent to enter into a | ||||||
15 | credit Agreement;
| ||||||
16 | (2) the letter described in paragraph (1) is | ||||||
17 | issued by the
Department not later than 15 days after | ||||||
18 | the effective date of this Act; and
| ||||||
19 | (3) the employee was hired after the date the | ||||||
20 | letter described in
paragraph (1) was issued.
| ||||||
21 | "Noncompliance Date" means, in the case of a Taxpayer that | ||||||
22 | is not complying
with the requirements of the Agreement or the | ||||||
23 | provisions of this Act, the day
following the last date upon | ||||||
24 | which the Taxpayer was in compliance with the
requirements of | ||||||
25 | the Agreement and the provisions of this Act, as determined
by | ||||||
26 | the Director, pursuant to Section 5-65.
|
| |||||||
| |||||||
1 | "Pass Through Entity" means an entity that is exempt from | ||||||
2 | the tax under
subsection (b) or (c) of Section 205 of the | ||||||
3 | Illinois Income Tax Act.
| ||||||
4 | "Professional Employer Organization" (PEO) means an | ||||||
5 | employee leasing company, as defined in Section 206.1(A)(2) of | ||||||
6 | the Illinois Unemployment Insurance Act.
| ||||||
7 | "Related Member" means a person that, with respect to the | ||||||
8 | Taxpayer during
any portion of the taxable year, is any one of | ||||||
9 | the following:
| ||||||
10 | (1) An individual stockholder, if the stockholder and | ||||||
11 | the members of the
stockholder's family (as defined in | ||||||
12 | Section 318 of the Internal Revenue Code)
own directly, | ||||||
13 | indirectly, beneficially, or constructively, in the | ||||||
14 | aggregate,
at least 50% of the value of the Taxpayer's | ||||||
15 | outstanding stock.
| ||||||
16 | (2) A partnership, estate, or trust and any partner or | ||||||
17 | beneficiary,
if the partnership, estate, or trust, and its | ||||||
18 | partners or beneficiaries own
directly, indirectly, | ||||||
19 | beneficially, or constructively, in the aggregate, at
| ||||||
20 | least 50% of the profits, capital, stock, or value of the
| ||||||
21 | Taxpayer.
| ||||||
22 | (3) A corporation, and any party related to the | ||||||
23 | corporation in a manner
that would require an attribution | ||||||
24 | of stock from the corporation to the
party or from the | ||||||
25 | party to the corporation under the attribution rules
of | ||||||
26 | Section 318 of the Internal Revenue Code, if the Taxpayer |
| |||||||
| |||||||
1 | owns
directly, indirectly, beneficially, or constructively | ||||||
2 | at least
50% of the value of the corporation's outstanding | ||||||
3 | stock.
| ||||||
4 | (4) A corporation and any party related to that | ||||||
5 | corporation in a manner
that would require an attribution | ||||||
6 | of stock from the corporation to the party or
from the | ||||||
7 | party to the corporation under the attribution rules of | ||||||
8 | Section 318 of
the Internal Revenue Code, if the | ||||||
9 | corporation and all such related parties own
in the | ||||||
10 | aggregate at least 50% of the profits, capital, stock, or | ||||||
11 | value of the
Taxpayer.
| ||||||
12 | (5) A person to or from whom there is attribution of | ||||||
13 | stock ownership
in accordance with Section 1563(e) of the | ||||||
14 | Internal Revenue Code, except,
for purposes of determining | ||||||
15 | whether a person is a Related Member under
this paragraph, | ||||||
16 | 20% shall be substituted for 5% wherever 5% appears in
| ||||||
17 | Section 1563(e) of the Internal Revenue Code.
| ||||||
18 | "Startup taxpayer" means , for Agreements that are executed | ||||||
19 | before the effective date of the changes made to this Section | ||||||
20 | by this amendatory Act of the 103rd General Assembly, a | ||||||
21 | corporation, partnership, or other entity incorporated or | ||||||
22 | organized no more than 5 years before the filing of an | ||||||
23 | application for an Agreement that has never had any Illinois | ||||||
24 | income tax liability, excluding any Illinois income tax | ||||||
25 | liability of a Related Member which shall not be attributed to | ||||||
26 | the startup taxpayer. "Startup taxpayer" means, for Agreements |
| |||||||
| |||||||
1 | that are executed on or after the effective date of this | ||||||
2 | amendatory Act of the 103rd General Assembly, a corporation, | ||||||
3 | partnership, or other entity that is incorporated or organized | ||||||
4 | no more than 10 years before the filing of an application for | ||||||
5 | an Agreement and that has never had any Illinois income tax | ||||||
6 | liability. For the purpose of determining whether the taxpayer | ||||||
7 | has had any Illinois income tax liability, the Illinois income | ||||||
8 | tax liability of a Related Member shall not be attributed to | ||||||
9 | the startup taxpayer. | ||||||
10 | "Taxpayer" means an individual, corporation, partnership, | ||||||
11 | or other entity
that has any Illinois Income Tax liability.
| ||||||
12 | Until July 1, 2022, "underserved area" means a geographic | ||||||
13 | area that meets one or more of the following conditions: | ||||||
14 | (1) the area has a poverty rate of at least 20% | ||||||
15 | according to the latest federal decennial census; | ||||||
16 | (2) 75% or more of the children in the area | ||||||
17 | participate in the federal free lunch program according to | ||||||
18 | reported statistics from the State Board of Education; | ||||||
19 | (3) at least 20% of the households in the area receive | ||||||
20 | assistance under the Supplemental Nutrition Assistance | ||||||
21 | Program (SNAP); or | ||||||
22 | (4) the area has
an average unemployment rate, as | ||||||
23 | determined by the Illinois Department of
Employment | ||||||
24 | Security, that is more than 120% of the national | ||||||
25 | unemployment average, as
determined by the U.S. Department | ||||||
26 | of Labor, for a period of at least 2 consecutive calendar |
| |||||||
| |||||||
1 | years preceding the date of the application. | ||||||
2 | On and after July 1, 2022, "underserved area" means a | ||||||
3 | geographic area that meets one or more of the following | ||||||
4 | conditions: | ||||||
5 | (1) the area has a poverty rate of at least 20% | ||||||
6 | according to the latest American Community Survey; | ||||||
7 | (2) 35% or more of the families with children in the | ||||||
8 | area are living below 130% of the poverty line, according | ||||||
9 | to the latest American Community Survey; | ||||||
10 | (3) at least 20% of the households in the area receive | ||||||
11 | assistance under the Supplemental Nutrition Assistance | ||||||
12 | Program (SNAP); or | ||||||
13 | (4) the area has an average unemployment rate, as | ||||||
14 | determined by the Illinois Department of Employment | ||||||
15 | Security, that is more than 120% of the national | ||||||
16 | unemployment average, as determined by the U.S. Department | ||||||
17 | of Labor, for a period of at least 2 consecutive calendar | ||||||
18 | years preceding the date of the application. | ||||||
19 | (Source: P.A. 101-9, eff. 6-5-19; 102-330, eff. 1-1-22; | ||||||
20 | 102-700, eff. 4-19-22; 102-1125, eff. 2-3-23.)
| ||||||
21 | (35 ILCS 10/5-15) | ||||||
22 | Sec. 5-15. Tax Credit Awards. Subject to the conditions | ||||||
23 | set forth in this
Act, a Taxpayer is
entitled to a Credit | ||||||
24 | against or, as described in subsection (g) of this Section, a | ||||||
25 | payment towards taxes imposed pursuant to subsections (a) and |
| |||||||
| |||||||
1 | (b)
of Section 201 of the Illinois
Income Tax Act that may be | ||||||
2 | imposed on the Taxpayer for a taxable year beginning
on or
| ||||||
3 | after January 1, 1999,
if the Taxpayer is awarded a Credit by | ||||||
4 | the Department under this Act for that
taxable year. | ||||||
5 | (a) The Department shall make Credit awards under this Act | ||||||
6 | to foster job
creation and retention in Illinois. | ||||||
7 | (b) A person that proposes a project to create new jobs in | ||||||
8 | Illinois must
enter into an Agreement with the
Department for | ||||||
9 | the Credit under this Act. | ||||||
10 | (c) The Credit shall be claimed for the taxable years | ||||||
11 | specified in the
Agreement. | ||||||
12 | (d) The Credit shall not exceed the Incremental Income Tax | ||||||
13 | attributable to
the project that is the subject of the | ||||||
14 | Agreement. | ||||||
15 | (e) Nothing herein shall prohibit a Tax Credit Award to an | ||||||
16 | Applicant that uses a PEO if all other award criteria are | ||||||
17 | satisfied.
| ||||||
18 | (f) In lieu of the Credit allowed under this Act against | ||||||
19 | the taxes imposed pursuant to subsections (a) and (b) of | ||||||
20 | Section 201 of the Illinois Income Tax Act for any taxable year | ||||||
21 | ending on or after December 31, 2009, for Taxpayers that | ||||||
22 | entered into Agreements prior to January 1, 2015 and otherwise | ||||||
23 | meet the criteria set forth in this subsection (f), the | ||||||
24 | Taxpayer may elect to claim the Credit against its obligation | ||||||
25 | to pay over withholding under Section 704A of the Illinois | ||||||
26 | Income Tax Act. |
| |||||||
| |||||||
1 | (1) The election under this subsection (f) may be made | ||||||
2 | only by a Taxpayer that (i) is primarily engaged in one of | ||||||
3 | the following business activities: water purification and | ||||||
4 | treatment, motor vehicle metal stamping, automobile | ||||||
5 | manufacturing, automobile and light duty motor vehicle | ||||||
6 | manufacturing, motor vehicle manufacturing, light truck | ||||||
7 | and utility vehicle manufacturing, heavy duty truck | ||||||
8 | manufacturing, motor vehicle body manufacturing, cable | ||||||
9 | television infrastructure design or manufacturing, or | ||||||
10 | wireless telecommunication or computing terminal device | ||||||
11 | design or manufacturing for use on public networks and | ||||||
12 | (ii) meets the following criteria: | ||||||
13 | (A) the Taxpayer (i) had an Illinois net loss or an | ||||||
14 | Illinois net loss deduction under Section 207 of the | ||||||
15 | Illinois Income Tax Act for the taxable year in which | ||||||
16 | the Credit is awarded, (ii) employed a minimum of | ||||||
17 | 1,000 full-time employees in this State during the | ||||||
18 | taxable year in which the Credit is awarded, (iii) has | ||||||
19 | an Agreement under this Act on December 14, 2009 (the | ||||||
20 | effective date of Public Act 96-834), and (iv) is in | ||||||
21 | compliance with all provisions of that Agreement; | ||||||
22 | (B) the Taxpayer (i) had an Illinois net loss or an | ||||||
23 | Illinois net loss deduction under Section 207 of the | ||||||
24 | Illinois Income Tax Act for the taxable year in which | ||||||
25 | the Credit is awarded, (ii) employed a minimum of | ||||||
26 | 1,000 full-time employees in this State during the |
| |||||||
| |||||||
1 | taxable year in which the Credit is awarded, and (iii) | ||||||
2 | has applied for an Agreement within 365 days after | ||||||
3 | December 14, 2009 (the effective date of Public Act | ||||||
4 | 96-834); | ||||||
5 | (C) the Taxpayer (i) had an Illinois net operating | ||||||
6 | loss carryforward under Section 207 of the Illinois | ||||||
7 | Income Tax Act in a taxable year ending during | ||||||
8 | calendar year 2008, (ii) has applied for an Agreement | ||||||
9 | within 150 days after the effective date of this | ||||||
10 | amendatory Act of the 96th General Assembly, (iii) | ||||||
11 | creates at least 400 new jobs in Illinois, (iv) | ||||||
12 | retains at least 2,000 jobs in Illinois that would | ||||||
13 | have been at risk of relocation out of Illinois over a | ||||||
14 | 10-year period, and (v) makes a capital investment of | ||||||
15 | at least $75,000,000; | ||||||
16 | (D) the Taxpayer (i) had an Illinois net operating | ||||||
17 | loss carryforward under Section 207 of the Illinois | ||||||
18 | Income Tax Act in a taxable year ending during | ||||||
19 | calendar year 2009, (ii) has applied for an Agreement | ||||||
20 | within 150 days after the effective date of this | ||||||
21 | amendatory Act of the 96th General Assembly, (iii) | ||||||
22 | creates at least 150 new jobs, (iv) retains at least | ||||||
23 | 1,000 jobs in Illinois that would have been at risk of | ||||||
24 | relocation out of Illinois over a 10-year period, and | ||||||
25 | (v) makes a capital investment of at least | ||||||
26 | $57,000,000; or |
| |||||||
| |||||||
1 | (E) the Taxpayer (i) employed at least 2,500 | ||||||
2 | full-time employees in the State during the year in | ||||||
3 | which the Credit is awarded, (ii) commits to make at | ||||||
4 | least $500,000,000 in combined capital improvements | ||||||
5 | and project costs under the Agreement, (iii) applies | ||||||
6 | for an Agreement between January 1, 2011 and June 30, | ||||||
7 | 2011, (iv) executes an Agreement for the Credit during | ||||||
8 | calendar year 2011, and (v) was incorporated no more | ||||||
9 | than 5 years before the filing of an application for an | ||||||
10 | Agreement. | ||||||
11 | (1.5) The election under this subsection (f) may also | ||||||
12 | be made by a Taxpayer for any Credit awarded pursuant to an | ||||||
13 | agreement that was executed between January 1, 2011 and | ||||||
14 | June 30, 2011, if the Taxpayer (i) is primarily engaged in | ||||||
15 | the manufacture of inner tubes or tires, or both, from | ||||||
16 | natural and synthetic rubber, (ii) employs a minimum of | ||||||
17 | 2,400 full-time employees in Illinois at the time of | ||||||
18 | application, (iii) creates at least 350 full-time jobs and | ||||||
19 | retains at least 250 full-time jobs in Illinois that would | ||||||
20 | have been at risk of being created or retained outside of | ||||||
21 | Illinois, and (iv) makes a capital investment of at least | ||||||
22 | $200,000,000 at the project location. | ||||||
23 | (1.6) The election under this subsection (f) may also | ||||||
24 | be made by a Taxpayer for any Credit awarded pursuant to an | ||||||
25 | agreement that was executed within 150 days after the | ||||||
26 | effective date of this amendatory Act of the 97th General |
| |||||||
| |||||||
1 | Assembly, if the Taxpayer (i) is primarily engaged in the | ||||||
2 | operation of a discount department store, (ii) maintains | ||||||
3 | its corporate headquarters in Illinois, (iii) employs a | ||||||
4 | minimum of 4,250 full-time employees at its corporate | ||||||
5 | headquarters in Illinois at the time of application, (iv) | ||||||
6 | retains at least 4,250 full-time jobs in Illinois that | ||||||
7 | would have been at risk of being relocated outside of | ||||||
8 | Illinois, (v) had a minimum of $40,000,000,000 in total | ||||||
9 | revenue in 2010, and (vi) makes a capital investment of at | ||||||
10 | least $300,000,000 at the project location. | ||||||
11 | (1.7) Notwithstanding any other provision of law, the | ||||||
12 | election under this subsection (f) may also be made by a | ||||||
13 | Taxpayer for any Credit awarded pursuant to an agreement | ||||||
14 | that was executed or applied for on or after July 1, 2011 | ||||||
15 | and on or before March 31, 2012, if the Taxpayer is | ||||||
16 | primarily engaged in the manufacture of original and | ||||||
17 | aftermarket filtration parts and products for automobiles, | ||||||
18 | motor vehicles, light duty motor vehicles, light trucks | ||||||
19 | and utility vehicles, and heavy duty trucks, (ii) employs | ||||||
20 | a minimum of 1,000 full-time employees in Illinois at the | ||||||
21 | time of application, (iii) creates at least 250 full-time | ||||||
22 | jobs in Illinois, (iv) relocates its corporate | ||||||
23 | headquarters to Illinois from another state, and (v) makes | ||||||
24 | a capital investment of at least $4,000,000 at the project | ||||||
25 | location. | ||||||
26 | (1.8) Notwithstanding any other provision of law, the |
| |||||||
| |||||||
1 | election under this subsection (f) may also be made by a | ||||||
2 | startup taxpayer for any Credit awarded pursuant to an | ||||||
3 | Agreement that was executed or applied for on or after the | ||||||
4 | effective date of this amendatory Act of the 102nd General | ||||||
5 | Assembly , if the startup taxpayer, without considering any | ||||||
6 | Related Member or other investor, (i) has never had any | ||||||
7 | Illinois income tax liability and (ii) was incorporated no | ||||||
8 | more than 5 years before the filing of an application for | ||||||
9 | an Agreement . Any such election under this paragraph (1.8) | ||||||
10 | shall be effective unless and until such startup taxpayer | ||||||
11 | has any Illinois income tax liability. This election under | ||||||
12 | this paragraph (1.8) shall automatically terminate when | ||||||
13 | the startup taxpayer has any Illinois income tax liability | ||||||
14 | at the end of any taxable year during the term of the | ||||||
15 | Agreement. Thereafter, the startup taxpayer may receive a | ||||||
16 | Credit, taking into account any benefits previously | ||||||
17 | enjoyed or received by way of the election under this | ||||||
18 | paragraph (1.8), so long as the startup taxpayer remains | ||||||
19 | in compliance with the terms and conditions of the | ||||||
20 | Agreement. | ||||||
21 | (2) An election under this subsection shall allow the | ||||||
22 | credit to be taken against payments otherwise due under | ||||||
23 | Section 704A of the Illinois Income Tax Act during the | ||||||
24 | first calendar quarter year beginning after the end of the | ||||||
25 | taxable quarter year in which the credit is awarded under | ||||||
26 | this Act. |
| |||||||
| |||||||
1 | (3) The election shall be made in the form and manner | ||||||
2 | required by the Illinois Department of Revenue and, once | ||||||
3 | made, shall be irrevocable. | ||||||
4 | (4) If a Taxpayer who meets the requirements of | ||||||
5 | subparagraph (A) of paragraph (1) of this subsection (f) | ||||||
6 | elects to claim the Credit against its withholdings as | ||||||
7 | provided in this subsection (f), then, on and after the | ||||||
8 | date of the election, the terms of the Agreement between | ||||||
9 | the Taxpayer and the Department may not be further amended | ||||||
10 | during the term of the Agreement. | ||||||
11 | (g) A pass-through entity that has been awarded a credit | ||||||
12 | under this Act, its shareholders, or its partners may treat | ||||||
13 | some or all of the credit awarded pursuant to this Act as a tax | ||||||
14 | payment for purposes of the Illinois Income Tax Act. The term | ||||||
15 | "tax payment" means a payment as described in Article 6 or | ||||||
16 | Article 8 of the Illinois Income Tax Act or a composite payment | ||||||
17 | made by a pass-through entity on behalf of any of its | ||||||
18 | shareholders or partners to satisfy such shareholders' or | ||||||
19 | partners' taxes imposed pursuant to subsections (a) and (b) of | ||||||
20 | Section 201 of the Illinois Income Tax Act. In no event shall | ||||||
21 | the amount of the award credited pursuant to this Act exceed | ||||||
22 | the Illinois income tax liability of the pass-through entity | ||||||
23 | or its shareholders or partners for the taxable year. | ||||||
24 | (Source: P.A. 102-700, eff. 4-19-22.)
| ||||||
25 | Section 45-15. The Public Utilities Act is amended by |
| |||||||
| |||||||
1 | changing Section 9-222.1A as follows:
| ||||||
2 | (220 ILCS 5/9-222.1A)
| ||||||
3 | Sec. 9-222.1A. High impact business. Beginning on August | ||||||
4 | 1, 1998 and
thereafter, a business enterprise that is | ||||||
5 | certified as a High Impact Business
by the Department of | ||||||
6 | Commerce and Economic Opportunity (formerly Department of | ||||||
7 | Commerce and Community Affairs) is exempt from the tax
imposed | ||||||
8 | by Section 2-4 of the Electricity Excise Tax Law, if the High | ||||||
9 | Impact
Business is registered to self-assess that tax, and is | ||||||
10 | exempt from any
additional charges added to the business | ||||||
11 | enterprise's utility bills as a
pass-on of State utility taxes | ||||||
12 | under Section 9-222 of this Act, to the extent
the tax or | ||||||
13 | charges are exempted by the percentage specified by the | ||||||
14 | Department
of Commerce and Economic Opportunity for State | ||||||
15 | utility taxes, provided the
business enterprise meets the | ||||||
16 | following criteria:
| ||||||
17 | (1) (A) it intends either (i) to make a minimum | ||||||
18 | eligible investment
of
$12,000,000 that will be placed | ||||||
19 | in service in qualified property in Illinois
and is | ||||||
20 | intended to create at least 500 full-time equivalent | ||||||
21 | jobs at a
designated
location in Illinois; or (ii) to | ||||||
22 | make a minimum eligible investment of
$30,000,000 that | ||||||
23 | will be placed in service in qualified property in
| ||||||
24 | Illinois and is intended to retain at least 1,500 | ||||||
25 | full-time equivalent jobs at
a designated location in |
| |||||||
| |||||||
1 | Illinois; or
| ||||||
2 | (B) it meets the criteria of subdivision | ||||||
3 | (a)(3)(B), (a)(3)(C),
(a)(3)(D), or (a)(3)(F) , or | ||||||
4 | (a)(3)(G) of
Section 5.5 of the
Illinois Enterprise | ||||||
5 | Zone Act;
| ||||||
6 | (2) it is designated as a High Impact Business by the | ||||||
7 | Department of
Commerce and Economic Opportunity; and
| ||||||
8 | (3) it is certified by the Department of Commerce and | ||||||
9 | Economic Opportunity as complying with the requirements | ||||||
10 | specified in clauses (1) and (2) of
this Section.
| ||||||
11 | The Department of Commerce and Economic Opportunity shall | ||||||
12 | determine the period
during which the exemption from the | ||||||
13 | Electricity Excise Tax Law and the
charges imposed under | ||||||
14 | Section 9-222 are in effect and shall specify the percentage
| ||||||
15 | of the exemption from those taxes or additional charges.
| ||||||
16 | The Department of Commerce and Economic Opportunity is | ||||||
17 | authorized to
promulgate rules and regulations to carry out | ||||||
18 | the provisions of this Section,
including procedures for | ||||||
19 | complying with the requirements specified in
clauses (1) and | ||||||
20 | (2) of this Section and procedures for applying for the
| ||||||
21 | exemptions authorized under this Section; to define the | ||||||
22 | amounts and types of
eligible investments that business | ||||||
23 | enterprises must make in order to receive
State utility tax | ||||||
24 | exemptions or exemptions from the additional charges imposed
| ||||||
25 | under Section 9-222 and this Section; to
approve such utility | ||||||
26 | tax exemptions for business enterprises whose investments
are |
| |||||||
| |||||||
1 | not yet placed in service; and to require that business | ||||||
2 | enterprises
granted tax exemptions or exemptions from | ||||||
3 | additional charges under Section
9-222 repay the exempted | ||||||
4 | amount if the business enterprise fails
to comply with the | ||||||
5 | terms and conditions of the certification.
| ||||||
6 | Upon certification of the business enterprises by the | ||||||
7 | Department of Commerce
and Economic Opportunity, the | ||||||
8 | Department of Commerce and Economic Opportunity shall
notify | ||||||
9 | the Department of Revenue of the certification. The Department | ||||||
10 | of
Revenue shall notify the public utilities of the exemption | ||||||
11 | status of business
enterprises from the tax or pass-on charges | ||||||
12 | of State utility taxes. The
exemption
status shall take effect | ||||||
13 | within 3 months after certification of the
business | ||||||
14 | enterprise.
| ||||||
15 | (Source: P.A. 102-1125, eff. 2-3-23.)
| ||||||
16 | ARTICLE 50. INVESTMENT PARTNERSHIPS | ||||||
17 | Section 50-5. The Illinois Income Tax Act is amended by | ||||||
18 | changing Sections 709.5 and 1501 as follows: | ||||||
19 | (35 ILCS 5/709.5)
| ||||||
20 | Sec. 709.5. Withholding by partnerships, Subchapter S | ||||||
21 | corporations, and trusts. | ||||||
22 | (a) In general. For each taxable year ending on or after | ||||||
23 | December 31, 2008, every partnership (other than a publicly |
| |||||||
| |||||||
1 | traded partnership under Section 7704 of the Internal Revenue | ||||||
2 | Code or investment partnership), Subchapter S corporation, and | ||||||
3 | trust must withhold from each nonresident partner, | ||||||
4 | shareholder, or beneficiary (other than a partner, | ||||||
5 | shareholder, or beneficiary who is exempt from tax under | ||||||
6 | Section 501(a) of the Internal Revenue Code or under Section | ||||||
7 | 205 of this Act, who is included on a composite return filed by | ||||||
8 | the partnership or Subchapter S corporation for the taxable | ||||||
9 | year under subsection (f) of Section 502 of this Act), or who | ||||||
10 | is a retired partner, to the extent that partner's | ||||||
11 | distributions are exempt from tax under Section 203(a)(2)(F) | ||||||
12 | of this Act) an amount equal to the sum of (i) the share of | ||||||
13 | business income of the partnership, Subchapter S corporation, | ||||||
14 | or trust apportionable to Illinois plus (ii) for taxable years | ||||||
15 | ending on or after December 31, 2014, the share of nonbusiness | ||||||
16 | income of the partnership, Subchapter S corporation, or trust | ||||||
17 | allocated to Illinois under Section 303 of this Act (other | ||||||
18 | than an amount allocated to the commercial domicile of the | ||||||
19 | taxpayer under Section 303 of this Act) that is distributable | ||||||
20 | to that partner, shareholder, or beneficiary under Sections | ||||||
21 | 702 and 704 and Subchapter S of the Internal Revenue Code, | ||||||
22 | whether or not distributed, (iii) multiplied by the applicable | ||||||
23 | rates of tax for that partner, shareholder, or beneficiary | ||||||
24 | under subsections (a) through (d) of Section 201 of this Act, | ||||||
25 | and (iv) net of the share of any credit under Article 2 of this | ||||||
26 | Act that is distributable by the partnership, Subchapter S |
| |||||||
| |||||||
1 | corporation, or trust and allowable against the tax liability | ||||||
2 | of that partner, shareholder, or beneficiary for a taxable | ||||||
3 | year ending on or after December 31, 2014. | ||||||
4 | (b) Credit for taxes withheld. Any amount withheld under | ||||||
5 | subsection (a) of this Section and paid to the Department | ||||||
6 | shall be treated as a payment of the estimated tax liability or | ||||||
7 | of the liability for withholding under this Section of the | ||||||
8 | partner, shareholder, or beneficiary to whom the income is | ||||||
9 | distributable for the taxable year in which that person | ||||||
10 | incurred a liability under this Act with respect to that | ||||||
11 | income.
The Department shall adopt rules pursuant to which a | ||||||
12 | partner, shareholder, or beneficiary may claim a credit | ||||||
13 | against its obligation for withholding under this Section for | ||||||
14 | amounts withheld under this Section with respect to income | ||||||
15 | distributable to it by a partnership, Subchapter S | ||||||
16 | corporation, or trust and allowing its partners, shareholders, | ||||||
17 | or beneficiaries to claim a credit under this subsection (b) | ||||||
18 | for those withheld amounts.
| ||||||
19 | (c) Exemption from withholding. | ||||||
20 | (1) A partnership, Subchapter S corporation, or trust | ||||||
21 | shall not be required to withhold tax under subsection (a) | ||||||
22 | of this Section with respect to any nonresident partner, | ||||||
23 | shareholder, or beneficiary (other than an individual) | ||||||
24 | from whom the partnership, S corporation, or trust has | ||||||
25 | received a certificate, completed in the form and manner | ||||||
26 | prescribed by the Department, stating that such |
| |||||||
| |||||||
1 | nonresident partner, shareholder, or beneficiary shall: | ||||||
2 | (A) file all returns that the partner, | ||||||
3 | shareholder, or beneficiary is required to file under | ||||||
4 | Section 502 of this Act and make timely payment of all | ||||||
5 | taxes imposed under Section 201 of this Act or under | ||||||
6 | this Section on the partner, shareholder, or | ||||||
7 | beneficiary with respect to income of the partnership, | ||||||
8 | S corporation, or trust; and | ||||||
9 | (B) be subject to personal jurisdiction in this | ||||||
10 | State for purposes of the collection of income taxes, | ||||||
11 | together with related interest and penalties, imposed | ||||||
12 | on the partner, shareholder, or beneficiary with | ||||||
13 | respect to the income of the partnership, S | ||||||
14 | corporation, or trust. | ||||||
15 | (2) The Department may revoke the exemption provided | ||||||
16 | by this subsection (c) at any time that it determines that | ||||||
17 | the nonresident partner, shareholder, or beneficiary is | ||||||
18 | not abiding by the terms of the certificate. The | ||||||
19 | Department shall notify the partnership, S corporation, or | ||||||
20 | trust that it has revoked a certificate by notice left at | ||||||
21 | the usual place of business of the partnership, S | ||||||
22 | corporation, or trust or by mail to the last known address | ||||||
23 | of the partnership, S corporation, or trust. | ||||||
24 | (3) A partnership, S corporation, or trust that | ||||||
25 | receives a certificate under this subsection (c) properly | ||||||
26 | completed by a nonresident partner, shareholder, or |
| |||||||
| |||||||
1 | beneficiary shall not be required to withhold any amount | ||||||
2 | from that partner, shareholder, or beneficiary, the | ||||||
3 | payment of which would be due under Section 711(a-5) of | ||||||
4 | this Act after the receipt of the certificate and no | ||||||
5 | earlier than 60 days after the Department has notified the | ||||||
6 | partnership, S corporation, or trust that the certificate | ||||||
7 | has been revoked. | ||||||
8 | (4) Certificates received by a partnership, S | ||||||
9 | corporation, or trust under this subsection (c) must be | ||||||
10 | retained by the partnership, S corporation, or trust and a | ||||||
11 | record of such certificates must be provided to the | ||||||
12 | Department, in a format in which the record is available | ||||||
13 | for review by the Department, upon request by the | ||||||
14 | Department. The Department may, by rule, require the | ||||||
15 | record of certificates to be maintained and provided to | ||||||
16 | the Department electronically.
| ||||||
17 | (d) For taxable years ending on and after December 31, | ||||||
18 | 2023, every investment partnership, as defined in Section 1501 | ||||||
19 | of this Act, shall withhold from each nonresident partner | ||||||
20 | (other than a partner who is exempt from tax under Section | ||||||
21 | 501(a) of the Internal Revenue Code or under Section 205 of | ||||||
22 | this Act, or who is a retired partner, to the extent that | ||||||
23 | partner's distributions are exempt from tax under Section | ||||||
24 | 203(a)(2)(F) of this Act) an amount calculated as follows: | ||||||
25 | (1) the sum of (i) the share of income that, but for | ||||||
26 | the provisions of subsection (c-5) of Section 305 of this |
| |||||||
| |||||||
1 | Act, would be apportioned to Illinois by the investment | ||||||
2 | partnership under subsection (a) of Section 305 of this | ||||||
3 | Act and (ii) the share of nonbusiness income that, but for | ||||||
4 | the provisions of subsection (c-5) of Section 305 of this | ||||||
5 | Act, would be allocated to Illinois by the investment | ||||||
6 | partnership under subsection (b) of Sections 305 and | ||||||
7 | Section 303 of this Act (other than an amount allocated to | ||||||
8 | the commercial domicile of the taxpayer under Section 303 | ||||||
9 | of this Act) that is distributable to that partner under | ||||||
10 | Sections 702 and 704 of the Internal Revenue Code, whether | ||||||
11 | or not distributed; multiplied by | ||||||
12 | (2) the applicable rates of tax for that partner under | ||||||
13 | subsections (a) through (d) of Section 201 of this Act | ||||||
14 | (except that, if the partner is a partnership or | ||||||
15 | subchapter S corporation, the rate shall be equal to the | ||||||
16 | rate imposed on individuals under subsection (b) of | ||||||
17 | Section 201 of this Act); and | ||||||
18 | (3) net of the investment partnership's distributive | ||||||
19 | share of any credit under Article 2 of this Act that is | ||||||
20 | distributable by the partnership and first allowable | ||||||
21 | against the tax liability of that partner for a taxable | ||||||
22 | year ending on or after December 31, 2023. | ||||||
23 | Except to the extent that the income of the investment | ||||||
24 | partnership is business income in the hands of the partner | ||||||
25 | under subsection (c-5) of Section 305 of this Act, no credit | ||||||
26 | for taxes withheld shall be allowed under subsection (b) of |
| |||||||
| |||||||
1 | this Section for amounts withheld under this subsection. | ||||||
2 | The provisions of subsection (c) of this Section, allowing | ||||||
3 | for exemption from withholding, shall not apply for purposes | ||||||
4 | of this subsection. | ||||||
5 | (Source: P.A. 100-201, eff. 8-18-17.)
| ||||||
6 | (35 ILCS 5/1501) (from Ch. 120, par. 15-1501)
| ||||||
7 | Sec. 1501. Definitions.
| ||||||
8 | (a) In general. When used in this Act, where not
otherwise | ||||||
9 | distinctly expressed or manifestly incompatible with the | ||||||
10 | intent
thereof:
| ||||||
11 | (1) Business income. The term "business income" means | ||||||
12 | all income that may be treated as apportionable business | ||||||
13 | income under the Constitution of the United States. | ||||||
14 | Business income is net of the deductions allocable | ||||||
15 | thereto. Such term does not include compensation
or the | ||||||
16 | deductions allocable thereto.
For each taxable year | ||||||
17 | beginning on or after January 1, 2003, a taxpayer may
| ||||||
18 | elect to treat all income other than compensation as | ||||||
19 | business income. This
election shall be made in accordance | ||||||
20 | with rules adopted by the Department and,
once made, shall | ||||||
21 | be irrevocable.
| ||||||
22 | (1.5) Captive real estate investment trust:
| ||||||
23 | (A) The term "captive real estate investment | ||||||
24 | trust" means a corporation, trust, or association:
| ||||||
25 | (i) that is considered a real estate |
| |||||||
| |||||||
1 | investment trust for the taxable year under | ||||||
2 | Section 856 of the Internal Revenue Code;
| ||||||
3 | (ii) the certificates of beneficial interest | ||||||
4 | or shares of which are not regularly traded on an | ||||||
5 | established securities market; and | ||||||
6 | (iii) of which more than 50% of the voting | ||||||
7 | power or value of the beneficial interest or | ||||||
8 | shares, at any time during the last half of the | ||||||
9 | taxable year, is owned or controlled, directly, | ||||||
10 | indirectly, or constructively, by a single | ||||||
11 | corporation. | ||||||
12 | (B) The term "captive real estate investment | ||||||
13 | trust" does not include: | ||||||
14 | (i) a real estate investment trust of which | ||||||
15 | more than 50% of the voting power or value of the | ||||||
16 | beneficial interest or shares is owned or | ||||||
17 | controlled, directly, indirectly, or | ||||||
18 | constructively, by: | ||||||
19 | (a) a real estate investment trust, other | ||||||
20 | than a captive real estate investment trust; | ||||||
21 | (b) a person who is exempt from taxation | ||||||
22 | under Section 501 of the Internal Revenue | ||||||
23 | Code, and who is not required to treat income | ||||||
24 | received from the real estate investment trust | ||||||
25 | as unrelated business taxable income under | ||||||
26 | Section 512 of the Internal Revenue Code; |
| |||||||
| |||||||
1 | (c) a listed Australian property trust, if | ||||||
2 | no more than 50% of the voting power or value | ||||||
3 | of the beneficial interest or shares of that | ||||||
4 | trust, at any time during the last half of the | ||||||
5 | taxable year, is owned or controlled, directly | ||||||
6 | or indirectly, by a single person; | ||||||
7 | (d) an entity organized as a trust, | ||||||
8 | provided a listed Australian property trust | ||||||
9 | described in subparagraph (c) owns or | ||||||
10 | controls, directly or indirectly, or | ||||||
11 | constructively, 75% or more of the voting | ||||||
12 | power or value of the beneficial interests or | ||||||
13 | shares of such entity; or | ||||||
14 | (e) an entity that is organized outside of | ||||||
15 | the laws of the United States and that | ||||||
16 | satisfies all of the following criteria: | ||||||
17 | (1) at least 75% of the entity's total | ||||||
18 | asset value at the close of its taxable | ||||||
19 | year is represented by real estate assets | ||||||
20 | (as defined in Section 856(c)(5)(B) of the | ||||||
21 | Internal Revenue Code, thereby including | ||||||
22 | shares or certificates of beneficial | ||||||
23 | interest in any real estate investment | ||||||
24 | trust), cash and cash equivalents, and | ||||||
25 | U.S. Government securities; | ||||||
26 | (2) the entity is not subject to tax |
| |||||||
| |||||||
1 | on amounts that are distributed to its | ||||||
2 | beneficial owners or is exempt from | ||||||
3 | entity-level taxation; | ||||||
4 | (3) the entity distributes at least | ||||||
5 | 85% of its taxable income (as computed in | ||||||
6 | the jurisdiction in which it is organized) | ||||||
7 | to the holders of its shares or | ||||||
8 | certificates of beneficial interest on an | ||||||
9 | annual basis; | ||||||
10 | (4) either (i) the shares or | ||||||
11 | beneficial interests of the entity are | ||||||
12 | regularly traded on an established | ||||||
13 | securities market or (ii) not more than | ||||||
14 | 10% of the voting power or value in the | ||||||
15 | entity is held, directly, indirectly, or | ||||||
16 | constructively, by a single entity or | ||||||
17 | individual; and | ||||||
18 | (5) the entity is organized in a | ||||||
19 | country that has entered into a tax treaty | ||||||
20 | with the United States; or | ||||||
21 | (ii) during its first taxable year for which | ||||||
22 | it elects to be treated as a real estate | ||||||
23 | investment trust under Section 856(c)(1) of the | ||||||
24 | Internal Revenue Code, a real estate investment | ||||||
25 | trust the certificates of beneficial interest or | ||||||
26 | shares of which are not regularly traded on an |
| |||||||
| |||||||
1 | established securities market, but only if the | ||||||
2 | certificates of beneficial interest or shares of | ||||||
3 | the real estate investment trust are regularly | ||||||
4 | traded on an established securities market prior | ||||||
5 | to the earlier of the due date (including | ||||||
6 | extensions) for filing its return under this Act | ||||||
7 | for that first taxable year or the date it | ||||||
8 | actually files that return. | ||||||
9 | (C) For the purposes of this subsection (1.5), the | ||||||
10 | constructive ownership rules prescribed under Section | ||||||
11 | 318(a) of the Internal Revenue Code, as modified by | ||||||
12 | Section 856(d)(5) of the Internal Revenue Code, apply | ||||||
13 | in determining the ownership of stock, assets, or net | ||||||
14 | profits of any person.
| ||||||
15 | (D) For the purposes of this item (1.5), for | ||||||
16 | taxable years ending on or after August 16, 2007, the | ||||||
17 | voting power or value of the beneficial interest or | ||||||
18 | shares of a real estate investment trust does not | ||||||
19 | include any voting power or value of beneficial | ||||||
20 | interest or shares in a real estate investment trust | ||||||
21 | held directly or indirectly in a segregated asset | ||||||
22 | account by a life insurance company (as described in | ||||||
23 | Section 817 of the Internal Revenue Code) to the | ||||||
24 | extent such voting power or value is for the benefit of | ||||||
25 | entities or persons who are either immune from | ||||||
26 | taxation or exempt from taxation under subtitle A of |
| |||||||
| |||||||
1 | the Internal Revenue Code. | ||||||
2 | (2) Commercial domicile. The term "commercial | ||||||
3 | domicile" means the
principal
place from which the trade | ||||||
4 | or business of the taxpayer is directed or managed.
| ||||||
5 | (3) Compensation. The term "compensation" means wages, | ||||||
6 | salaries,
commissions
and any other form of remuneration | ||||||
7 | paid to employees for personal services.
| ||||||
8 | (4) Corporation. The term "corporation" includes | ||||||
9 | associations, joint-stock
companies, insurance companies | ||||||
10 | and cooperatives. Any entity, including a
limited | ||||||
11 | liability company formed under the Illinois Limited | ||||||
12 | Liability Company
Act, shall be treated as a corporation | ||||||
13 | if it is so classified for federal
income tax purposes.
| ||||||
14 | (5) Department. The term "Department" means the | ||||||
15 | Department of Revenue of
this State.
| ||||||
16 | (6) Director. The term "Director" means the Director | ||||||
17 | of Revenue of this
State.
| ||||||
18 | (7) Fiduciary. The term "fiduciary" means a guardian, | ||||||
19 | trustee, executor,
administrator, receiver, or any person | ||||||
20 | acting in any fiduciary capacity for any
person.
| ||||||
21 | (8) Financial organization.
| ||||||
22 | (A) The term "financial organization" means
any
| ||||||
23 | bank, bank holding company, trust company, savings | ||||||
24 | bank, industrial bank,
land bank, safe deposit | ||||||
25 | company, private banker, savings and loan association,
| ||||||
26 | building and loan association, credit union, currency |
| |||||||
| |||||||
1 | exchange, cooperative
bank, small loan company, sales | ||||||
2 | finance company, investment company, or any
person | ||||||
3 | which is owned by a bank or bank holding company. For | ||||||
4 | the purpose of
this Section a "person" will include | ||||||
5 | only those persons which a bank holding
company may | ||||||
6 | acquire and hold an interest in, directly or | ||||||
7 | indirectly, under the
provisions of the Bank Holding | ||||||
8 | Company Act of 1956 (12 U.S.C. 1841, et seq.),
except | ||||||
9 | where interests in any person must be disposed of | ||||||
10 | within certain
required time limits under the Bank | ||||||
11 | Holding Company Act of 1956.
| ||||||
12 | (B) For purposes of subparagraph (A) of this | ||||||
13 | paragraph, the term
"bank" includes (i) any entity | ||||||
14 | that is regulated by the Comptroller of the
Currency | ||||||
15 | under the National Bank Act, or by the Federal Reserve | ||||||
16 | Board, or by
the
Federal Deposit Insurance Corporation | ||||||
17 | and (ii) any federally or State chartered
bank
| ||||||
18 | operating as a credit card bank.
| ||||||
19 | (C) For purposes of subparagraph (A) of this | ||||||
20 | paragraph, the term
"sales finance company" has the | ||||||
21 | meaning provided in the following item (i) or
(ii):
| ||||||
22 | (i) A person primarily engaged in one or more | ||||||
23 | of the following
businesses: the business of | ||||||
24 | purchasing customer receivables, the business
of | ||||||
25 | making loans upon the security of customer | ||||||
26 | receivables, the
business of making loans for the |
| |||||||
| |||||||
1 | express purpose of funding purchases of
tangible | ||||||
2 | personal property or services by the borrower, or | ||||||
3 | the business of
finance leasing. For purposes of | ||||||
4 | this item (i), "customer receivable"
means:
| ||||||
5 | (a) a retail installment contract or | ||||||
6 | retail charge agreement within
the
meaning
of | ||||||
7 | the Sales Finance Agency Act, the Retail | ||||||
8 | Installment Sales Act, or the
Motor Vehicle | ||||||
9 | Retail Installment Sales Act;
| ||||||
10 | (b) an installment, charge, credit, or | ||||||
11 | similar contract or agreement
arising from
the | ||||||
12 | sale of tangible personal property or services | ||||||
13 | in a transaction involving
a deferred payment | ||||||
14 | price payable in one or more installments | ||||||
15 | subsequent
to the sale; or
| ||||||
16 | (c) the outstanding balance of a contract | ||||||
17 | or agreement described in
provisions
(a) or | ||||||
18 | (b) of this item (i).
| ||||||
19 | A customer receivable need not provide for | ||||||
20 | payment of interest on
deferred
payments. A sales | ||||||
21 | finance company may purchase a customer receivable | ||||||
22 | from, or
make a loan secured by a customer | ||||||
23 | receivable to, the seller in the original
| ||||||
24 | transaction or to a person who purchased the | ||||||
25 | customer receivable directly or
indirectly from | ||||||
26 | that seller.
|
| |||||||
| |||||||
1 | (ii) A corporation meeting each of the | ||||||
2 | following criteria:
| ||||||
3 | (a) the corporation must be a member of an | ||||||
4 | "affiliated group" within
the
meaning of | ||||||
5 | Section 1504(a) of the Internal Revenue Code, | ||||||
6 | determined
without regard to Section 1504(b) | ||||||
7 | of the Internal Revenue Code;
| ||||||
8 | (b) more than 50% of the gross income of | ||||||
9 | the corporation for the
taxable
year
must be | ||||||
10 | interest income derived from qualifying loans. | ||||||
11 | A "qualifying
loan" is a loan made to a member | ||||||
12 | of the corporation's affiliated group that
| ||||||
13 | originates customer receivables (within the | ||||||
14 | meaning of item (i)) or to whom
customer | ||||||
15 | receivables originated by a member of the | ||||||
16 | affiliated group have been
transferred, to
the | ||||||
17 | extent the average outstanding balance of | ||||||
18 | loans from that corporation
to members of its | ||||||
19 | affiliated group during the taxable year do | ||||||
20 | not exceed
the limitation amount for that | ||||||
21 | corporation. The "limitation amount" for a
| ||||||
22 | corporation is the average outstanding | ||||||
23 | balances during the taxable year of
customer | ||||||
24 | receivables (within the meaning of item (i)) | ||||||
25 | originated by
all members of the affiliated | ||||||
26 | group.
If the average outstanding balances of |
| |||||||
| |||||||
1 | the
loans made by a corporation to members of | ||||||
2 | its affiliated group exceed the
limitation | ||||||
3 | amount, the interest income of that | ||||||
4 | corporation from qualifying
loans shall be | ||||||
5 | equal to its interest income from loans to | ||||||
6 | members of its
affiliated groups times a | ||||||
7 | fraction equal to the limitation amount | ||||||
8 | divided by
the average outstanding balances of | ||||||
9 | the loans made by that corporation to
members | ||||||
10 | of its affiliated group;
| ||||||
11 | (c) the total of all shareholder's equity | ||||||
12 | (including, without
limitation,
paid-in
| ||||||
13 | capital on common and preferred stock and | ||||||
14 | retained earnings) of the
corporation plus the | ||||||
15 | total of all of its loans, advances, and other
| ||||||
16 | obligations payable or owed to members of its | ||||||
17 | affiliated group may not
exceed 20% of the | ||||||
18 | total assets of the corporation at any time | ||||||
19 | during the tax
year; and
| ||||||
20 | (d) more than 50% of all interest-bearing | ||||||
21 | obligations of the
affiliated group payable to | ||||||
22 | persons outside the group determined in | ||||||
23 | accordance
with generally accepted accounting | ||||||
24 | principles must be obligations of the
| ||||||
25 | corporation.
| ||||||
26 | This amendatory Act of the 91st General Assembly |
| |||||||
| |||||||
1 | is declaratory of
existing
law.
| ||||||
2 | (D) Subparagraphs
(B) and (C) of this paragraph | ||||||
3 | are declaratory of
existing law and apply | ||||||
4 | retroactively, for all tax years beginning on or | ||||||
5 | before
December 31, 1996,
to all original returns, to | ||||||
6 | all amended returns filed no later than 30
days after | ||||||
7 | the effective date of this amendatory Act of 1996, and | ||||||
8 | to all
notices issued on or before the effective date | ||||||
9 | of this amendatory Act of 1996
under subsection (a) of | ||||||
10 | Section 903, subsection (a) of Section 904,
subsection | ||||||
11 | (e) of Section 909, or Section 912.
A taxpayer that is | ||||||
12 | a "financial organization" that engages in any | ||||||
13 | transaction
with an affiliate shall be a "financial | ||||||
14 | organization" for all purposes of this
Act.
| ||||||
15 | (E) For all tax years beginning on or
before | ||||||
16 | December 31, 1996, a taxpayer that falls within the | ||||||
17 | definition
of a
"financial organization" under | ||||||
18 | subparagraphs (B) or (C) of this paragraph, but
who | ||||||
19 | does
not fall within the definition of a "financial | ||||||
20 | organization" under the Proposed
Regulations issued by | ||||||
21 | the Department of Revenue on July 19, 1996, may
| ||||||
22 | irrevocably elect to apply the Proposed Regulations | ||||||
23 | for all of those years as
though the Proposed | ||||||
24 | Regulations had been lawfully promulgated, adopted, | ||||||
25 | and in
effect for all of those years. For purposes of | ||||||
26 | applying subparagraphs (B) or
(C) of
this
paragraph to |
| |||||||
| |||||||
1 | all of those years, the election allowed by this | ||||||
2 | subparagraph
applies only to the taxpayer making the | ||||||
3 | election and to those members of the
taxpayer's | ||||||
4 | unitary business group who are ordinarily required to | ||||||
5 | apportion
business income under the same subsection of | ||||||
6 | Section 304 of this Act as the
taxpayer making the | ||||||
7 | election. No election allowed by this subparagraph | ||||||
8 | shall
be made under a claim
filed under subsection (d) | ||||||
9 | of Section 909 more than 30 days after the
effective | ||||||
10 | date of this amendatory Act of 1996.
| ||||||
11 | (F) Finance Leases. For purposes of this | ||||||
12 | subsection, a finance lease
shall be treated as a loan | ||||||
13 | or other extension of credit, rather than as a
lease,
| ||||||
14 | regardless of how the transaction is characterized for | ||||||
15 | any other purpose,
including the purposes of any | ||||||
16 | regulatory agency to which the lessor is subject.
A | ||||||
17 | finance lease is any transaction in the form of a lease | ||||||
18 | in which the lessee
is treated as the owner of the | ||||||
19 | leased asset entitled to any deduction for
| ||||||
20 | depreciation allowed under Section 167 of the Internal | ||||||
21 | Revenue Code.
| ||||||
22 | (9) Fiscal year. The term "fiscal year" means an | ||||||
23 | accounting period of
12 months ending on the last day of | ||||||
24 | any month other than December.
| ||||||
25 | (9.5) Fixed place of business. The term "fixed place | ||||||
26 | of business" has the same meaning as that term is given in |
| |||||||
| |||||||
1 | Section 864 of the Internal Revenue Code and the related | ||||||
2 | Treasury regulations. | ||||||
3 | (10) Includes and including. The terms "includes" and | ||||||
4 | "including" when
used in a definition contained in this | ||||||
5 | Act shall not be deemed to exclude
other things otherwise | ||||||
6 | within the meaning of the term defined.
| ||||||
7 | (11) Internal Revenue Code. The term "Internal Revenue | ||||||
8 | Code" means the
United States Internal Revenue Code of | ||||||
9 | 1954 or any successor law or laws
relating to federal | ||||||
10 | income taxes in effect for the taxable year.
| ||||||
11 | (11.5) Investment partnership. | ||||||
12 | (A) For tax years ending before December 31, 2023, | ||||||
13 | the The term "investment partnership" means any entity | ||||||
14 | that is treated as a partnership for federal income | ||||||
15 | tax purposes that meets the following requirements: | ||||||
16 | (i) no less than 90% of the partnership's cost | ||||||
17 | of its total assets consists of qualifying | ||||||
18 | investment securities, deposits at banks or other | ||||||
19 | financial institutions, and office space and | ||||||
20 | equipment reasonably necessary to carry on its | ||||||
21 | activities as an investment partnership; | ||||||
22 | (ii) no less than 90% of its gross income | ||||||
23 | consists of interest, dividends, and gains from | ||||||
24 | the sale or exchange of qualifying investment | ||||||
25 | securities; and
| ||||||
26 | (iii) the partnership is not a dealer in |
| |||||||
| |||||||
1 | qualifying investment securities. | ||||||
2 | (A-5) For tax years ending on or after December | ||||||
3 | 31, 2023, the term "investment partnership" means any | ||||||
4 | entity that is treated as a partnership for federal | ||||||
5 | income tax purposes that meets the following | ||||||
6 | requirements: | ||||||
7 | (i) no less than 90% of the partnership's cost | ||||||
8 | of its total assets consists of qualifying | ||||||
9 | investment securities, deposits at banks or other | ||||||
10 | financial institutions, and office space and | ||||||
11 | equipment reasonably necessary to carry on its | ||||||
12 | activities as an investment partnership; and | ||||||
13 | (ii) no less than 90% of its gross income | ||||||
14 | consists of interest, dividends, gains from the | ||||||
15 | sale or exchange of qualifying investment | ||||||
16 | securities, and the distributive share of | ||||||
17 | partnership income from lower-tier partnership | ||||||
18 | interests meeting the definition of qualifying | ||||||
19 | investment security under subparagraph (B)(xiii); | ||||||
20 | for the purposes of this subparagraph (ii), "gross | ||||||
21 | income" does not include income from partnerships | ||||||
22 | that are operating at a federal taxable loss. | ||||||
23 | (B) For purposes of this paragraph (11.5), the | ||||||
24 | term "qualifying investment securities" (other than, | ||||||
25 | for tax years ending on or after December 31, 2023, | ||||||
26 | securities with respect to which the taxpayer is |
| |||||||
| |||||||
1 | required to apply the rules of Internal Revenue Code | ||||||
2 | Section 475(a)) includes all of the following:
| ||||||
3 | (i) common stock, including preferred or debt | ||||||
4 | securities convertible into common stock, and | ||||||
5 | preferred stock; | ||||||
6 | (ii) bonds, debentures, and other debt | ||||||
7 | securities; | ||||||
8 | (iii) foreign and domestic currency deposits | ||||||
9 | secured by federal, state, or local governmental | ||||||
10 | agencies; | ||||||
11 | (iv) mortgage or asset-backed securities | ||||||
12 | secured by federal, state, or local governmental | ||||||
13 | agencies; | ||||||
14 | (v) repurchase agreements and loan | ||||||
15 | participations; | ||||||
16 | (vi) foreign currency exchange contracts and | ||||||
17 | forward and futures contracts on foreign | ||||||
18 | currencies; | ||||||
19 | (vii) stock and bond index securities and | ||||||
20 | futures contracts and other similar financial | ||||||
21 | securities and futures contracts on those | ||||||
22 | securities;
| ||||||
23 | (viii) options for the purchase or sale of any | ||||||
24 | of the securities, currencies, contracts, or | ||||||
25 | financial instruments described in items (i) to | ||||||
26 | (vii), inclusive;
|
| |||||||
| |||||||
1 | (ix) regulated futures contracts;
| ||||||
2 | (x) commodities (not described in Section | ||||||
3 | 1221(a)(1) of the Internal Revenue Code) or | ||||||
4 | futures, forwards, and options with respect to | ||||||
5 | such commodities, provided, however, that any item | ||||||
6 | of a physical commodity to which title is actually | ||||||
7 | acquired in the partnership's capacity as a dealer | ||||||
8 | in such commodity shall not be a qualifying | ||||||
9 | investment security;
| ||||||
10 | (xi) derivatives; and
| ||||||
11 | (xii) a partnership interest in another | ||||||
12 | partnership that is an investment partnership ; and | ||||||
13 | .
| ||||||
14 | (xiii) for tax years ending on or after | ||||||
15 | December 31, 2023, a partnership interest that, in | ||||||
16 | the hands of the partnership, qualifies as a | ||||||
17 | security within the meaning of subsection (a)(1) | ||||||
18 | of Subchapter 77b of Chapter 2A of Title 15 of the | ||||||
19 | United States Code. | ||||||
20 | (12) Mathematical error. The term "mathematical error" | ||||||
21 | includes the
following types of errors, omissions, or | ||||||
22 | defects in a return filed by a
taxpayer which prevents | ||||||
23 | acceptance of the return as filed for processing:
| ||||||
24 | (A) arithmetic errors or incorrect computations on | ||||||
25 | the return or
supporting schedules;
| ||||||
26 | (B) entries on the wrong lines;
|
| |||||||
| |||||||
1 | (C) omission of required supporting forms or | ||||||
2 | schedules or the omission
of the information in whole | ||||||
3 | or in part called for thereon; and
| ||||||
4 | (D) an attempt to claim, exclude, deduct, or | ||||||
5 | improperly report, in a
manner
directly contrary to | ||||||
6 | the provisions of the Act and regulations thereunder
| ||||||
7 | any item of income, exemption, deduction, or credit.
| ||||||
8 | (13) Nonbusiness income. The term "nonbusiness income" | ||||||
9 | means all income
other than business income or | ||||||
10 | compensation.
| ||||||
11 | (14) Nonresident. The term "nonresident" means a | ||||||
12 | person who is not a
resident.
| ||||||
13 | (15) Paid, incurred and accrued. The terms "paid", | ||||||
14 | "incurred" and
"accrued"
shall be construed according to | ||||||
15 | the method of accounting upon the basis
of which the | ||||||
16 | person's base income is computed under this Act.
| ||||||
17 | (16) Partnership and partner. The term "partnership" | ||||||
18 | includes a syndicate,
group, pool, joint venture or other | ||||||
19 | unincorporated organization, through
or by means of which | ||||||
20 | any business, financial operation, or venture is carried
| ||||||
21 | on, and which is not, within the meaning of this Act, a | ||||||
22 | trust or estate
or a corporation; and the term "partner" | ||||||
23 | includes a member in such syndicate,
group, pool, joint | ||||||
24 | venture or organization.
| ||||||
25 | The term "partnership" includes any entity, including | ||||||
26 | a limited
liability company formed under the Illinois
|
| |||||||
| |||||||
1 | Limited Liability Company Act, classified as a partnership | ||||||
2 | for federal income tax purposes.
| ||||||
3 | The term "partnership" does not include a syndicate, | ||||||
4 | group, pool,
joint venture, or other unincorporated | ||||||
5 | organization established for the
sole purpose of playing | ||||||
6 | the Illinois State Lottery.
| ||||||
7 | (17) Part-year resident. The term "part-year resident" | ||||||
8 | means an individual
who became a resident during the | ||||||
9 | taxable year or ceased to be a resident
during the taxable | ||||||
10 | year. Under Section 1501(a)(20)(A)(i) residence
commences | ||||||
11 | with presence in this State for other than a temporary or | ||||||
12 | transitory
purpose and ceases with absence from this State | ||||||
13 | for other than a temporary or
transitory purpose. Under | ||||||
14 | Section 1501(a)(20)(A)(ii) residence commences
with the | ||||||
15 | establishment of domicile in this State and ceases with | ||||||
16 | the
establishment of domicile in another State.
| ||||||
17 | (18) Person. The term "person" shall be construed to | ||||||
18 | mean and include
an individual, a trust, estate, | ||||||
19 | partnership, association, firm, company,
corporation, | ||||||
20 | limited liability company, or fiduciary. For purposes of | ||||||
21 | Section
1301 and 1302 of this Act, a "person" means (i) an | ||||||
22 | individual, (ii) a
corporation, (iii) an officer, agent, | ||||||
23 | or employee of a
corporation, (iv) a member, agent or | ||||||
24 | employee of a partnership, or (v)
a member,
manager, | ||||||
25 | employee, officer, director, or agent of a limited | ||||||
26 | liability company
who in such capacity commits an offense |
| |||||||
| |||||||
1 | specified in Section 1301 and 1302.
| ||||||
2 | (18A) Records. The term "records" includes all data | ||||||
3 | maintained by the
taxpayer, whether on paper, microfilm, | ||||||
4 | microfiche, or any type of
machine-sensible data | ||||||
5 | compilation.
| ||||||
6 | (19) Regulations. The term "regulations" includes | ||||||
7 | rules promulgated and
forms prescribed by the Department.
| ||||||
8 | (20) Resident. The term "resident" means:
| ||||||
9 | (A) an individual (i) who is
in this State for | ||||||
10 | other than a temporary or transitory purpose during | ||||||
11 | the
taxable year; or (ii) who is domiciled in this | ||||||
12 | State but is absent from
the State for a temporary or | ||||||
13 | transitory purpose during the taxable year;
| ||||||
14 | (B) The estate of a decedent who at his or her | ||||||
15 | death was domiciled in
this
State;
| ||||||
16 | (C) A trust created by a will of a decedent who at | ||||||
17 | his death was
domiciled
in this State; and
| ||||||
18 | (D) An irrevocable trust, the grantor of which was | ||||||
19 | domiciled in this
State
at the time such trust became | ||||||
20 | irrevocable. For purpose of this subparagraph,
a trust | ||||||
21 | shall be considered irrevocable to the extent that the | ||||||
22 | grantor is
not treated as the owner thereof under | ||||||
23 | Sections 671 through 678 of the Internal
Revenue Code.
| ||||||
24 | (21) Sales. The term "sales" means all gross receipts | ||||||
25 | of the taxpayer
not allocated under Sections 301, 302 and | ||||||
26 | 303.
|
| |||||||
| |||||||
1 | (22) State. The term "state" when applied to a | ||||||
2 | jurisdiction other than
this State means any state of the | ||||||
3 | United States, the District of Columbia,
the Commonwealth | ||||||
4 | of Puerto Rico, any Territory or Possession of the United
| ||||||
5 | States, and any foreign country, or any political | ||||||
6 | subdivision of any of the
foregoing. For purposes of the | ||||||
7 | foreign tax credit under Section 601, the
term "state" | ||||||
8 | means any state of the United States, the District of | ||||||
9 | Columbia,
the Commonwealth of Puerto Rico, and any | ||||||
10 | territory or possession of the
United States, or any | ||||||
11 | political subdivision of any of the foregoing,
effective | ||||||
12 | for tax years ending on or after December 31, 1989.
| ||||||
13 | (23) Taxable year. The term "taxable year" means the | ||||||
14 | calendar year, or
the fiscal year ending during such | ||||||
15 | calendar year, upon the basis of which
the base income is | ||||||
16 | computed under this Act. "Taxable year" means, in the
case | ||||||
17 | of a return made for a fractional part of a year under the | ||||||
18 | provisions
of this Act, the period for which such return | ||||||
19 | is made.
| ||||||
20 | (24) Taxpayer. The term "taxpayer" means any person | ||||||
21 | subject to the tax
imposed by this Act.
| ||||||
22 | (25) International banking facility. The term | ||||||
23 | international banking
facility shall have the same meaning | ||||||
24 | as is set forth in the Illinois Banking
Act or as is set | ||||||
25 | forth in the laws of the United States or regulations of
| ||||||
26 | the Board of Governors of the Federal Reserve System.
|
| |||||||
| |||||||
1 | (26) Income Tax Return Preparer.
| ||||||
2 | (A) The term "income tax return preparer"
means | ||||||
3 | any person who prepares for compensation, or who | ||||||
4 | employs one or more
persons to prepare for | ||||||
5 | compensation, any return of tax imposed by this Act
or | ||||||
6 | any claim for refund of tax imposed by this Act. The | ||||||
7 | preparation of a
substantial portion of a return or | ||||||
8 | claim for refund shall be treated as
the preparation | ||||||
9 | of that return or claim for refund.
| ||||||
10 | (B) A person is not an income tax return preparer | ||||||
11 | if all he or she does
is
| ||||||
12 | (i) furnish typing, reproducing, or other | ||||||
13 | mechanical assistance;
| ||||||
14 | (ii) prepare returns or claims for refunds for | ||||||
15 | the employer by whom he
or she is regularly and | ||||||
16 | continuously employed;
| ||||||
17 | (iii) prepare as a fiduciary returns or claims | ||||||
18 | for refunds for any
person; or
| ||||||
19 | (iv) prepare claims for refunds for a taxpayer | ||||||
20 | in response to any
notice
of deficiency issued to | ||||||
21 | that taxpayer or in response to any waiver of
| ||||||
22 | restriction after the commencement of an audit of | ||||||
23 | that taxpayer or of another
taxpayer if a | ||||||
24 | determination in the audit of the other taxpayer | ||||||
25 | directly or
indirectly affects the tax liability | ||||||
26 | of the taxpayer whose claims he or she is
|
| |||||||
| |||||||
1 | preparing.
| ||||||
2 | (27) Unitary business group. | ||||||
3 | (A) The term "unitary business group" means
a | ||||||
4 | group of persons related through common ownership | ||||||
5 | whose business activities
are integrated with, | ||||||
6 | dependent upon and contribute to each other. The group
| ||||||
7 | will not include those members whose business activity | ||||||
8 | outside the United
States is 80% or more of any such | ||||||
9 | member's total business activity; for
purposes of this | ||||||
10 | paragraph and clause (a)(3)(B)(ii) of Section 304,
| ||||||
11 | business
activity within the United States shall be | ||||||
12 | measured by means of the factors
ordinarily applicable | ||||||
13 | under subsections (a), (b), (c), (d), or (h)
of | ||||||
14 | Section
304 except that, in the case of members | ||||||
15 | ordinarily required to apportion
business income by | ||||||
16 | means of the 3 factor formula of property, payroll and | ||||||
17 | sales
specified in subsection (a) of Section 304, | ||||||
18 | including the
formula as weighted in subsection (h) of | ||||||
19 | Section 304, such members shall
not use the sales | ||||||
20 | factor in the computation and the results of the | ||||||
21 | property
and payroll factor computations of subsection | ||||||
22 | (a) of Section 304 shall be
divided by 2 (by one if | ||||||
23 | either
the property or payroll factor has a | ||||||
24 | denominator of zero). The computation
required by the | ||||||
25 | preceding sentence shall, in each case, involve the | ||||||
26 | division of
the member's property, payroll, or revenue |
| |||||||
| |||||||
1 | miles in the United States,
insurance premiums on | ||||||
2 | property or risk in the United States, or financial
| ||||||
3 | organization business income from sources within the | ||||||
4 | United States, as the
case may be, by the respective | ||||||
5 | worldwide figures for such items. Common
ownership in | ||||||
6 | the case of corporations is the direct or indirect | ||||||
7 | control or
ownership of more than 50% of the | ||||||
8 | outstanding voting stock of the persons
carrying on | ||||||
9 | unitary business activity. Unitary business activity | ||||||
10 | can
ordinarily be illustrated where the activities of | ||||||
11 | the members are: (1) in the
same general line (such as | ||||||
12 | manufacturing, wholesaling, retailing of tangible
| ||||||
13 | personal property, insurance, transportation or | ||||||
14 | finance); or (2) are steps in a
vertically structured | ||||||
15 | enterprise or process (such as the steps involved in | ||||||
16 | the
production of natural resources, which might | ||||||
17 | include exploration, mining,
refining, and marketing); | ||||||
18 | and, in either instance, the members are functionally
| ||||||
19 | integrated through the exercise of strong centralized | ||||||
20 | management (where, for
example, authority over such | ||||||
21 | matters as purchasing, financing, tax compliance,
| ||||||
22 | product line, personnel, marketing and capital | ||||||
23 | investment is not left to each
member).
| ||||||
24 | (B) In no event, for taxable years ending prior to | ||||||
25 | December 31, 2017, shall any
unitary business group | ||||||
26 | include members
which are ordinarily required to |
| |||||||
| |||||||
1 | apportion business income under different
subsections | ||||||
2 | of Section 304 except that for tax years ending on or | ||||||
3 | after
December 31, 1987 this prohibition shall not | ||||||
4 | apply to a holding company that would otherwise be a | ||||||
5 | member of a unitary business group with taxpayers that | ||||||
6 | apportion business income under any of subsections | ||||||
7 | (b), (c), (c-1), or (d) of Section 304. If a unitary | ||||||
8 | business
group would, but for the preceding sentence, | ||||||
9 | include members that are
ordinarily required to | ||||||
10 | apportion business income under different subsections | ||||||
11 | of
Section 304, then for each subsection of Section | ||||||
12 | 304 for which there are two or
more members, there | ||||||
13 | shall be a separate unitary business group composed of | ||||||
14 | such
members. For purposes of the preceding two | ||||||
15 | sentences, a member is "ordinarily
required to | ||||||
16 | apportion business income" under a particular | ||||||
17 | subsection of Section
304 if it would be required to | ||||||
18 | use the apportionment method prescribed by such
| ||||||
19 | subsection except for the fact that it derives | ||||||
20 | business income solely from
Illinois. As used in this | ||||||
21 | paragraph, for taxable years ending before December | ||||||
22 | 31, 2017, the phrase "United States" means only the 50 | ||||||
23 | states and the District of Columbia, but does not | ||||||
24 | include any territory or possession of the United | ||||||
25 | States or any area over which the United States has | ||||||
26 | asserted jurisdiction or claimed exclusive rights with |
| |||||||
| |||||||
1 | respect to the exploration for or exploitation of | ||||||
2 | natural resources.
For taxable years ending on or | ||||||
3 | after December 31, 2017, the phrase "United States", | ||||||
4 | as used in this paragraph, means only the 50 states, | ||||||
5 | the District of Columbia, and any area over which the | ||||||
6 | United States has asserted jurisdiction or claimed | ||||||
7 | exclusive rights with respect to the exploration for | ||||||
8 | or exploitation of natural resources, but does not | ||||||
9 | include any territory or possession of the United | ||||||
10 | States. | ||||||
11 | (C) Holding companies. | ||||||
12 | (i) For purposes of this subparagraph, a | ||||||
13 | "holding company" is a corporation (other than a | ||||||
14 | corporation that is a financial organization under | ||||||
15 | paragraph (8) of this subsection (a) of Section | ||||||
16 | 1501 because it is a bank holding company under | ||||||
17 | the provisions of the Bank Holding Company Act of | ||||||
18 | 1956 (12 U.S.C. 1841, et seq.) or because it is | ||||||
19 | owned by a bank or a bank holding company) that | ||||||
20 | owns a controlling interest in one or more other | ||||||
21 | taxpayers ("controlled taxpayers"); that, during | ||||||
22 | the period that includes the taxable year and the | ||||||
23 | 2 immediately preceding taxable years or, if the | ||||||
24 | corporation was formed during the current or | ||||||
25 | immediately preceding taxable year, the taxable | ||||||
26 | years in which the corporation has been in |
| |||||||
| |||||||
1 | existence, derived substantially all its gross | ||||||
2 | income from dividends, interest, rents, royalties, | ||||||
3 | fees or other charges received from controlled | ||||||
4 | taxpayers for the provision of services, and gains | ||||||
5 | on the sale or other disposition of interests in | ||||||
6 | controlled taxpayers or in property leased or | ||||||
7 | licensed to controlled taxpayers or used by the | ||||||
8 | taxpayer in providing services to controlled | ||||||
9 | taxpayers; and that incurs no substantial expenses | ||||||
10 | other than expenses (including interest and other | ||||||
11 | costs of borrowing) incurred in connection with | ||||||
12 | the acquisition and holding of interests in | ||||||
13 | controlled taxpayers and in the provision of | ||||||
14 | services to controlled taxpayers or in the leasing | ||||||
15 | or licensing of property to controlled taxpayers. | ||||||
16 | (ii) The income of a holding company which is | ||||||
17 | a member of more than one unitary business group | ||||||
18 | shall be included in each unitary business group | ||||||
19 | of which it is a member on a pro rata basis, by | ||||||
20 | including in each unitary business group that | ||||||
21 | portion of the base income of the holding company | ||||||
22 | that bears the same proportion to the total base | ||||||
23 | income of the holding company as the gross | ||||||
24 | receipts of the unitary business group bears to | ||||||
25 | the combined gross receipts of all unitary | ||||||
26 | business groups (in both cases without regard to |
| |||||||
| |||||||
1 | the holding company) or on any other reasonable | ||||||
2 | basis, consistently applied. | ||||||
3 | (iii) A holding company shall apportion its | ||||||
4 | business income under the subsection of Section | ||||||
5 | 304 used by the other members of its unitary | ||||||
6 | business group. The apportionment factors of a | ||||||
7 | holding company which would be a member of more | ||||||
8 | than one unitary business group shall be included | ||||||
9 | with the apportionment factors of each unitary | ||||||
10 | business group of which it is a member on a pro | ||||||
11 | rata basis using the same method used in clause | ||||||
12 | (ii). | ||||||
13 | (iv) The provisions of this subparagraph (C) | ||||||
14 | are intended to clarify existing law. | ||||||
15 | (D) If including the base income and factors of a | ||||||
16 | holding company in more than one unitary business | ||||||
17 | group under subparagraph (C) does not fairly reflect | ||||||
18 | the degree of integration between the holding company | ||||||
19 | and one or more of the unitary business groups, the | ||||||
20 | dependence of the holding company and one or more of | ||||||
21 | the unitary business groups upon each other, or the | ||||||
22 | contributions between the holding company and one or | ||||||
23 | more of the unitary business groups, the holding | ||||||
24 | company may petition the Director, under the | ||||||
25 | procedures provided under Section 304(f), for | ||||||
26 | permission to include all base income and factors of |
| |||||||
| |||||||
1 | the holding company only with members of a unitary | ||||||
2 | business group apportioning their business income | ||||||
3 | under one subsection of subsections (a), (b), (c), or | ||||||
4 | (d) of Section 304. If the petition is granted, the | ||||||
5 | holding company shall be included in a unitary | ||||||
6 | business group only with persons apportioning their | ||||||
7 | business income under the selected subsection of | ||||||
8 | Section 304 until the Director grants a petition of | ||||||
9 | the holding company either to be included in more than | ||||||
10 | one unitary business group under subparagraph (C) or | ||||||
11 | to include its base income and factors only with | ||||||
12 | members of a unitary business group apportioning their | ||||||
13 | business income under a different subsection of | ||||||
14 | Section 304. | ||||||
15 | (E) If the unitary business group members' | ||||||
16 | accounting periods differ,
the common parent's | ||||||
17 | accounting period or, if there is no common parent, | ||||||
18 | the
accounting period of the member that is expected | ||||||
19 | to have, on a recurring basis,
the greatest Illinois | ||||||
20 | income tax liability must be used to determine whether | ||||||
21 | to
use the apportionment method provided in subsection | ||||||
22 | (a) or subsection (h) of
Section 304. The
prohibition | ||||||
23 | against membership in a unitary business group for | ||||||
24 | taxpayers
ordinarily required to apportion income | ||||||
25 | under different subsections of Section
304 does not | ||||||
26 | apply to taxpayers required to apportion income under |
| |||||||
| |||||||
1 | subsection
(a) and subsection (h) of Section
304. The | ||||||
2 | provisions of this amendatory Act of 1998 apply to tax
| ||||||
3 | years ending on or after December 31, 1998.
| ||||||
4 | (28) Subchapter S corporation. The term "Subchapter S | ||||||
5 | corporation"
means a corporation for which there is in | ||||||
6 | effect an election under Section
1362 of the Internal | ||||||
7 | Revenue Code, or for which there is a federal election
to | ||||||
8 | opt out of the provisions of the Subchapter S Revision Act | ||||||
9 | of 1982 and
have applied instead the prior federal | ||||||
10 | Subchapter S rules as in effect on July
1, 1982.
| ||||||
11 | (30) Foreign person. The term "foreign person" means | ||||||
12 | any person who is a nonresident individual who is a | ||||||
13 | national or citizen of a country other than the United | ||||||
14 | States and any nonindividual entity, regardless of where | ||||||
15 | created or organized, whose business activity outside the | ||||||
16 | United States is 80% or more of the entity's total | ||||||
17 | business activity.
| ||||||
18 | (b) Other definitions.
| ||||||
19 | (1) Words denoting number, gender, and so forth,
when | ||||||
20 | used in this Act, where not otherwise distinctly expressed | ||||||
21 | or manifestly
incompatible with the intent thereof:
| ||||||
22 | (A) Words importing the singular include and apply | ||||||
23 | to several persons,
parties or things;
| ||||||
24 | (B) Words importing the plural include the | ||||||
25 | singular; and
| ||||||
26 | (C) Words importing the masculine gender include |
| |||||||
| |||||||
1 | the feminine as well.
| ||||||
2 | (2) "Company" or "association" as including successors | ||||||
3 | and assigns. The
word "company" or "association", when | ||||||
4 | used in reference to a corporation,
shall be deemed to | ||||||
5 | embrace the words "successors and assigns of such company
| ||||||
6 | or association", and in like manner as if these last-named | ||||||
7 | words, or words
of similar import, were expressed.
| ||||||
8 | (3) Other terms. Any term used in any Section of this | ||||||
9 | Act with respect
to the application of, or in connection | ||||||
10 | with, the provisions of any other
Section of this Act | ||||||
11 | shall have the same meaning as in such other Section.
| ||||||
12 | (Source: P.A. 102-1030, eff. 5-27-22.)
| ||||||
13 | ARTICLE 55. ANGEL INVESTMENT CREDIT | ||||||
14 | Section 55-5. The Illinois Income Tax Act is amended by | ||||||
15 | changing Section 220 as follows: | ||||||
16 | (35 ILCS 5/220) | ||||||
17 | Sec. 220. Angel investment credit. | ||||||
18 | (a) As used in this Section: | ||||||
19 | "Applicant" means a corporation, partnership, limited | ||||||
20 | liability company, or a natural person that makes an | ||||||
21 | investment in a qualified new business venture. The term | ||||||
22 | "applicant" does not include (i) a corporation, partnership, | ||||||
23 | limited liability company, or a natural person who has a |
| |||||||
| |||||||
1 | direct or indirect ownership interest of at least 51% in the | ||||||
2 | profits, capital, or value of the qualified new business | ||||||
3 | venture receiving the investment or (ii) a related member. | ||||||
4 | "Claimant" means an applicant certified by the Department | ||||||
5 | who files a claim for a credit under this Section. | ||||||
6 | "Department" means the Department of Commerce and Economic | ||||||
7 | Opportunity. | ||||||
8 | "Investment" means money (or its equivalent) given to a | ||||||
9 | qualified new business venture, at a risk of loss, in | ||||||
10 | consideration for an equity interest of the qualified new | ||||||
11 | business venture. The Department may adopt rules to permit | ||||||
12 | certain forms of contingent equity investments to be | ||||||
13 | considered eligible for a tax credit under this Section. | ||||||
14 | "Qualified new business venture" means a business that is | ||||||
15 | registered with the Department under this Section. | ||||||
16 | "Related member" means a person that, with respect to the
| ||||||
17 | applicant, is any one of the following: | ||||||
18 | (1) An individual, if the individual and the members | ||||||
19 | of the individual's family (as defined in Section 318 of | ||||||
20 | the Internal Revenue Code) own directly, indirectly,
| ||||||
21 | beneficially, or constructively, in the aggregate, at | ||||||
22 | least 50% of the value of the outstanding profits, | ||||||
23 | capital, stock, or other ownership interest in the | ||||||
24 | qualified new business venture that is the recipient of | ||||||
25 | the applicant's investment. | ||||||
26 | (2) A partnership, estate, or trust and any partner or |
| |||||||
| |||||||
1 | beneficiary, if the partnership, estate, or trust and its | ||||||
2 | partners or beneficiaries own directly, indirectly, | ||||||
3 | beneficially, or constructively, in the aggregate, at | ||||||
4 | least 50% of the profits, capital, stock, or other | ||||||
5 | ownership interest in the qualified new business venture | ||||||
6 | that is the recipient of the applicant's investment. | ||||||
7 | (3) A corporation, and any party related to the | ||||||
8 | corporation in a manner that would require an attribution | ||||||
9 | of stock from the corporation under the attribution rules
| ||||||
10 | of Section 318 of the Internal Revenue Code, if the | ||||||
11 | applicant and any other related member own, in the | ||||||
12 | aggregate, directly, indirectly, beneficially, or | ||||||
13 | constructively, at least 50% of the value of the | ||||||
14 | outstanding stock of the qualified new business venture | ||||||
15 | that is the recipient of the applicant's investment. | ||||||
16 | (4) A corporation and any party related to that | ||||||
17 | corporation in a manner that would require an attribution | ||||||
18 | of stock from the corporation to the party or from the
| ||||||
19 | party to the corporation under the attribution rules of | ||||||
20 | Section 318 of the Internal Revenue Code, if the | ||||||
21 | corporation and all such related parties own, in the | ||||||
22 | aggregate, at least 50% of the profits, capital, stock, or | ||||||
23 | other ownership interest in the qualified new business | ||||||
24 | venture that is the recipient of the applicant's | ||||||
25 | investment. | ||||||
26 | (5) A person to or from whom there is attribution of |
| |||||||
| |||||||
1 | ownership of stock in the qualified new business venture | ||||||
2 | that is the recipient of the applicant's investment in | ||||||
3 | accordance with Section 1563(e) of the Internal Revenue | ||||||
4 | Code, except that for purposes of determining whether a | ||||||
5 | person is a related member under this paragraph, "20%" | ||||||
6 | shall be substituted for "5%" whenever "5%" appears in | ||||||
7 | Section 1563(e) of the Internal Revenue Code. | ||||||
8 | (b) For taxable years beginning after December 31, 2010, | ||||||
9 | and ending on or before December 31, 2026, subject to the | ||||||
10 | limitations provided in this Section, a claimant may claim, as | ||||||
11 | a credit against the tax imposed under subsections (a) and (b) | ||||||
12 | of Section 201 of this Act, an amount equal to 25% of the | ||||||
13 | claimant's investment made directly in a qualified new | ||||||
14 | business venture. However, the amount of the credit is 35% of | ||||||
15 | the claimant's investment made directly in the qualified new | ||||||
16 | business venture if the investment is made in: (1) a qualified | ||||||
17 | new business venture that is a minority-owned business, a | ||||||
18 | women-owned business, or a business owned a person with a | ||||||
19 | disability (as those terms are used and defined in the | ||||||
20 | Business Enterprise for Minorities, Women, and Persons with | ||||||
21 | Disabilities Act); or (2) a qualified new business venture in | ||||||
22 | which the principal place of business is located in a county | ||||||
23 | with a population of not more than 250,000. In order for an | ||||||
24 | investment in a qualified new business venture to be eligible | ||||||
25 | for tax credits, the business must have applied for and | ||||||
26 | received certification under subsection (e) for the taxable |
| |||||||
| |||||||
1 | year in which the investment was made prior to the date on | ||||||
2 | which the investment was made. The credit under this Section | ||||||
3 | may not exceed the taxpayer's Illinois income tax liability | ||||||
4 | for the taxable year. If the amount of the credit exceeds the | ||||||
5 | tax liability for the year, the excess may be carried forward | ||||||
6 | and applied to the tax liability of the 5 taxable years | ||||||
7 | following the excess credit year. The credit shall be applied | ||||||
8 | to the earliest year for which there is a tax liability. If | ||||||
9 | there are credits from more than one tax year that are | ||||||
10 | available to offset a liability, the earlier credit shall be | ||||||
11 | applied first. In the case of a partnership or Subchapter S | ||||||
12 | Corporation, the credit is allowed to the partners or | ||||||
13 | shareholders in accordance with the determination of income | ||||||
14 | and distributive share of income under Sections 702 and 704 | ||||||
15 | and Subchapter S of the Internal Revenue Code. | ||||||
16 | (c) The minimum amount an applicant must invest in any | ||||||
17 | single qualified new business venture in order to be eligible | ||||||
18 | for a credit under this Section is $10,000. The maximum amount | ||||||
19 | of an applicant's total investment made in any single | ||||||
20 | qualified new business venture that may be used as the basis | ||||||
21 | for a credit under this Section is $2,000,000. | ||||||
22 | (d) The Department shall implement a program to certify an | ||||||
23 | applicant for an angel investment credit. Upon satisfactory | ||||||
24 | review, the Department shall issue a tax credit certificate | ||||||
25 | stating the amount of the tax credit to which the applicant is | ||||||
26 | entitled. The Department shall annually certify that: (i) each |
| |||||||
| |||||||
1 | qualified new business venture that receives an angel | ||||||
2 | investment under this Section has maintained a minimum | ||||||
3 | employment threshold, as defined by rule, in the State (and | ||||||
4 | continues to maintain a minimum employment threshold in the | ||||||
5 | State for a period of no less than 3 years from the issue date | ||||||
6 | of the last tax credit certificate issued by the Department | ||||||
7 | with respect to such business pursuant to this Section); and | ||||||
8 | (ii) the claimant's investment has been made and remains, | ||||||
9 | except in the event of a qualifying liquidity event, in the | ||||||
10 | qualified new business venture for no less than 3 years. | ||||||
11 | If an investment for which a claimant is allowed a credit | ||||||
12 | under subsection (b) is held by the claimant for less than 3 | ||||||
13 | years, other than as a result of a permitted sale of the | ||||||
14 | investment to person who is not a related member, the claimant | ||||||
15 | shall pay to the Department of Revenue, in the manner | ||||||
16 | prescribed by the Department of Revenue, the aggregate amount | ||||||
17 | of the disqualified credits that the claimant received related | ||||||
18 | to the subject investment. | ||||||
19 | If the Department determines that a qualified new business | ||||||
20 | venture failed to maintain a minimum employment threshold in | ||||||
21 | the State through the date which is 3 years from the issue date | ||||||
22 | of the last tax credit certificate issued by the Department | ||||||
23 | with respect to the subject business pursuant to this Section, | ||||||
24 | the claimant or claimants shall pay to the Department of | ||||||
25 | Revenue, in the manner prescribed by the Department of | ||||||
26 | Revenue, the aggregate amount of the disqualified credits that |
| |||||||
| |||||||
1 | claimant or claimants received related to investments in that | ||||||
2 | business. | ||||||
3 | (e) The Department shall implement a program to register | ||||||
4 | qualified new business ventures for purposes of this Section. | ||||||
5 | A business desiring registration under this Section shall be | ||||||
6 | required to submit a full and complete application to the | ||||||
7 | Department. A submitted application shall be effective only | ||||||
8 | for the taxable year in which it is submitted, and a business | ||||||
9 | desiring registration under this Section shall be required to | ||||||
10 | submit a separate application in and for each taxable year for | ||||||
11 | which the business desires registration. Further, if at any | ||||||
12 | time prior to the acceptance of an application for | ||||||
13 | registration under this Section by the Department one or more | ||||||
14 | events occurs which makes the information provided in that | ||||||
15 | application materially false or incomplete (in whole or in | ||||||
16 | part), the business shall promptly notify the Department of | ||||||
17 | the same. Any failure of a business to promptly provide the | ||||||
18 | foregoing information to the Department may, at the discretion | ||||||
19 | of the Department, result in a revocation of a previously | ||||||
20 | approved application for that business, or disqualification of | ||||||
21 | the business from future registration under this Section, or | ||||||
22 | both. The Department may register the business only if all of | ||||||
23 | the following conditions are satisfied: | ||||||
24 | (1) it has its principal place of business in this | ||||||
25 | State; | ||||||
26 | (2) at least 51% of the employees employed by the |
| |||||||
| |||||||
1 | business are employed in this State; | ||||||
2 | (3) the business has the potential for increasing jobs | ||||||
3 | in this State, increasing capital investment in this | ||||||
4 | State, or both, as determined by the Department, and | ||||||
5 | either of the following apply: | ||||||
6 | (A) it is principally engaged in innovation in any | ||||||
7 | of the following: manufacturing; biotechnology; | ||||||
8 | nanotechnology; communications; agricultural | ||||||
9 | sciences; clean energy creation or storage technology; | ||||||
10 | processing or assembling products, including medical | ||||||
11 | devices, pharmaceuticals, computer software, computer | ||||||
12 | hardware, semiconductors, other innovative technology | ||||||
13 | products, or other products that are produced using | ||||||
14 | manufacturing methods that are enabled by applying | ||||||
15 | proprietary technology; or providing services that are | ||||||
16 | enabled by applying proprietary technology; or | ||||||
17 | (B) it is undertaking pre-commercialization | ||||||
18 | activity related to proprietary technology that | ||||||
19 | includes conducting research, developing a new product | ||||||
20 | or business process, or developing a service that is | ||||||
21 | principally reliant on applying proprietary | ||||||
22 | technology; | ||||||
23 | (4) it is not principally engaged in real estate | ||||||
24 | development, insurance, banking, lending, lobbying, | ||||||
25 | political consulting, professional services provided by | ||||||
26 | attorneys, accountants, business consultants, physicians, |
| |||||||
| |||||||
1 | or health care consultants, wholesale or retail trade, | ||||||
2 | leisure, hospitality, transportation, or construction, | ||||||
3 | except construction of power production plants that derive | ||||||
4 | energy from a renewable energy resource, as defined in | ||||||
5 | Section 1 of the Illinois Power Agency Act; | ||||||
6 | (5) at the time it is first certified: | ||||||
7 | (A) it has fewer than 100 employees; | ||||||
8 | (B) it has been in operation in Illinois for not | ||||||
9 | more than 10 consecutive years prior to the year of | ||||||
10 | certification; and | ||||||
11 | (C) it has received not more than $10,000,000 in | ||||||
12 | aggregate investments; | ||||||
13 | (5.1) it agrees to maintain a minimum employment | ||||||
14 | threshold in the State of Illinois prior to the date which | ||||||
15 | is 3 years from the issue date of the last tax credit | ||||||
16 | certificate issued by the Department with respect to that | ||||||
17 | business pursuant to this Section; | ||||||
18 | (6) (blank); and | ||||||
19 | (7) it has received not more than $4,000,000 in | ||||||
20 | investments that qualified for tax credits under this | ||||||
21 | Section. | ||||||
22 | (f) The Department, in consultation with the Department of | ||||||
23 | Revenue, shall adopt rules to administer this Section. For | ||||||
24 | taxable years beginning before January 1, 2024, the The | ||||||
25 | aggregate amount of the tax credits that may be claimed under | ||||||
26 | this Section for investments made in qualified new business |
| |||||||
| |||||||
1 | ventures shall be limited to at $10,000,000 per calendar year, | ||||||
2 | of which $500,000 shall be reserved for investments made in | ||||||
3 | qualified new business ventures which are minority-owned | ||||||
4 | businesses, women-owned businesses, or businesses owned by a | ||||||
5 | person with a disability (as those terms are used and defined | ||||||
6 | in the Business Enterprise for Minorities, Women, and Persons | ||||||
7 | with Disabilities Act), and an additional $500,000 shall be | ||||||
8 | reserved for investments made in qualified new business | ||||||
9 | ventures with their principal place of business in counties | ||||||
10 | with a population of not more than 250,000. For taxable years | ||||||
11 | beginning on or after January 1, 2024, the aggregate amount of | ||||||
12 | the tax credits that may be claimed under this Section for | ||||||
13 | investments made in qualified new business ventures shall be | ||||||
14 | limited to $15,000,000 per calendar year, of which $2,500,000 | ||||||
15 | shall be reserved for investments made in qualified new | ||||||
16 | business ventures that are minority-owned businesses (as the | ||||||
17 | term is defined in the Business Enterprise for Minorities, | ||||||
18 | Women, and Persons with Disabilities Act), $1,250,000 shall be | ||||||
19 | reserved for investments made in qualified new business | ||||||
20 | ventures that are women-owned businesses or businesses owned | ||||||
21 | by a person with a disability (as those terms are defined in | ||||||
22 | the Business Enterprise for Minorities, Women, and Persons | ||||||
23 | with Disabilities Act), and $1,250,000 shall be reserved for | ||||||
24 | investments made in qualified new business ventures with their | ||||||
25 | principal place of business in a county with a population of | ||||||
26 | not more than 250,000. The foregoing annual allowable amounts |
| |||||||
| |||||||
1 | set forth in this Section shall be allocated by the | ||||||
2 | Department, on a per calendar quarter basis and prior to the | ||||||
3 | commencement of each calendar year, in such proportion as | ||||||
4 | determined by the Department, provided that: (i) the amount | ||||||
5 | initially allocated by the Department for any one calendar | ||||||
6 | quarter shall not exceed 35% of the total allowable amount; | ||||||
7 | (ii) any portion of the allocated allowable amount remaining | ||||||
8 | unused as of the end of any of the first 3 calendar quarters of | ||||||
9 | a given calendar year shall be rolled into, and added to, the | ||||||
10 | total allocated amount for the next available calendar | ||||||
11 | quarter; and (iii) the reservation of tax credits for | ||||||
12 | investments in minority-owned businesses, women-owned | ||||||
13 | businesses, businesses owned by a person with a disability, | ||||||
14 | and in businesses in counties with a population of not more | ||||||
15 | than 250,000 is limited to the first 3 calendar quarters of a | ||||||
16 | given calendar year, after which they may be claimed by | ||||||
17 | investors in any qualified new business venture. | ||||||
18 | (g) A claimant may not sell or otherwise transfer a credit | ||||||
19 | awarded under this Section to another person. | ||||||
20 | (h) On or before March 1 of each year, the Department shall | ||||||
21 | report to the Governor and to the General Assembly on the tax | ||||||
22 | credit certificates awarded under this Section for the prior | ||||||
23 | calendar year. | ||||||
24 | (1) This report must include, for each tax credit | ||||||
25 | certificate awarded: | ||||||
26 | (A) the name of the claimant and the amount of |
| |||||||
| |||||||
1 | credit awarded or allocated to that claimant; | ||||||
2 | (B) the name and address (including the county) of | ||||||
3 | the qualified new business venture that received the | ||||||
4 | investment giving rise to the credit, the North | ||||||
5 | American Industry Classification System (NAICS) code | ||||||
6 | applicable to that qualified new business venture, and | ||||||
7 | the number of employees of the qualified new business | ||||||
8 | venture; and | ||||||
9 | (C) the date of approval by the Department of each | ||||||
10 | claimant's tax credit certificate. | ||||||
11 | (2) The report must also include: | ||||||
12 | (A) the total number of applicants and the total | ||||||
13 | number of claimants, including the amount of each tax | ||||||
14 | credit certificate awarded to a claimant under this | ||||||
15 | Section in the prior calendar year; | ||||||
16 | (B) the total number of applications from | ||||||
17 | businesses seeking registration under this Section, | ||||||
18 | the total number of new qualified business ventures | ||||||
19 | registered by the Department, and the aggregate amount | ||||||
20 | of investment upon which tax credit certificates were | ||||||
21 | issued in the prior calendar year; and | ||||||
22 | (C) the total amount of tax credit certificates | ||||||
23 | sought by applicants, the amount of each tax credit | ||||||
24 | certificate issued to a claimant, the aggregate amount | ||||||
25 | of all tax credit certificates issued in the prior | ||||||
26 | calendar year and the aggregate amount of tax credit |
| |||||||
| |||||||
1 | certificates issued as authorized under this Section | ||||||
2 | for all calendar years.
| ||||||
3 | (i) For each business seeking registration under this | ||||||
4 | Section after December 31, 2016, the Department shall require | ||||||
5 | the business to include in its application the North American | ||||||
6 | Industry Classification System (NAICS) code applicable to the | ||||||
7 | business and the number of employees of the business at the | ||||||
8 | time of application. Each business registered by the | ||||||
9 | Department as a qualified new business venture that receives | ||||||
10 | an investment giving rise to the issuance of a tax credit | ||||||
11 | certificate pursuant to this Section shall, for each of the 3 | ||||||
12 | years following the issue date of the last tax credit | ||||||
13 | certificate issued by the Department with respect to such | ||||||
14 | business pursuant to this Section, report to the Department | ||||||
15 | the following: | ||||||
16 | (1) the number of employees and the location at which | ||||||
17 | those employees are employed, both as of the end of each | ||||||
18 | year; | ||||||
19 | (2) the amount of additional new capital investment | ||||||
20 | raised as of the end of each year, if any; and | ||||||
21 | (3) the terms of any liquidity event occurring during | ||||||
22 | such year; for the purposes of this Section, a "liquidity | ||||||
23 | event" means any event that would be considered an exit | ||||||
24 | for an illiquid investment, including any event that | ||||||
25 | allows the equity holders of the business (or any material | ||||||
26 | portion thereof) to cash out some or all of their |
| |||||||
| |||||||
1 | respective equity interests. | ||||||
2 | (Source: P.A. 101-81, eff. 7-12-19; 102-16, eff. 6-17-21.) | ||||||
3 | ARTICLE 60. NEW MARKETS DEVELOPMENT PROGRAM | ||||||
4 | Section 60-5. The New Markets Development Program Act is | ||||||
5 | amended by changing Sections 5, 20, 25, 45, and 50 as follows: | ||||||
6 | (20 ILCS 663/5)
| ||||||
7 | Sec. 5. Definitions. As used in this Act:
| ||||||
8 | "Applicable percentage" means 0% for each of the first 2 | ||||||
9 | credit allowance dates, 7% for the third credit allowance | ||||||
10 | date, and 8% for the next 4 credit allowance dates. | ||||||
11 | "Credit allowance date" means with respect to any | ||||||
12 | qualified equity investment:
| ||||||
13 | (1) the date on which the investment is initially | ||||||
14 | made; and | ||||||
15 | (2) each of the 6 anniversary dates of that date | ||||||
16 | thereafter. | ||||||
17 | "Department" means the Department of Commerce and Economic | ||||||
18 | Opportunity. | ||||||
19 | "Long-term debt security" means any debt instrument issued | ||||||
20 | by a qualified community development entity, at par value or a | ||||||
21 | premium, with an original maturity date of at least 7 years | ||||||
22 | from the date of its issuance, with no acceleration of | ||||||
23 | repayment, amortization, or prepayment features prior to its |
| |||||||
| |||||||
1 | original maturity date. Cumulative cash payments of interest | ||||||
2 | on the qualified debt instrument during the period commencing | ||||||
3 | with the issuance of the qualified debt instrument and ending | ||||||
4 | with the seventh anniversary of its issuance shall not exceed | ||||||
5 | the sum of such cash interest payments and the cumulative net | ||||||
6 | income of the issuing community development entity for the | ||||||
7 | same period. This definition in no way limits the holder's | ||||||
8 | ability to accelerate payments on the debt instrument in | ||||||
9 | situations where the issuer has defaulted on covenants | ||||||
10 | designed to ensure compliance with this Act or Section 45D of | ||||||
11 | the Internal Revenue Code of 1986, as amended. | ||||||
12 | "Purchase price" means the amount paid to the issuer of a | ||||||
13 | qualified equity investment for that qualified equity | ||||||
14 | investment. | ||||||
15 | "Qualified active low-income community business" has the | ||||||
16 | meaning given to that term in Section 45D of the Internal | ||||||
17 | Revenue Code of 1986, as amended; except that any business | ||||||
18 | that derives or projects to derive 15% or more of its annual | ||||||
19 | revenue from the rental or sale of real estate is not | ||||||
20 | considered to be a qualified active low-income community | ||||||
21 | business. This exception does not apply to a business that is | ||||||
22 | controlled by or under common control with another business if | ||||||
23 | the second business (i) does not derive or project to derive | ||||||
24 | 15% or more of its annual revenue from the rental or sale of | ||||||
25 | real estate and (ii) is the primary tenant of the real estate | ||||||
26 | leased from the initial business. A business shall be |
| |||||||
| |||||||
1 | considered a qualified active low-income community business | ||||||
2 | for the duration of the qualified community development | ||||||
3 | entity's investment in or loan to the business if the entity | ||||||
4 | reasonably expects, at the time it makes the investment or | ||||||
5 | loan, that the business will continue to satisfy the | ||||||
6 | requirements for being a qualified active low-income community | ||||||
7 | business throughout the entire period of the investment or | ||||||
8 | loan. | ||||||
9 | "Qualified community development entity" has the meaning | ||||||
10 | given to that term in Section 45D of the Internal Revenue Code | ||||||
11 | of 1986, as amended; provided that such entity has entered | ||||||
12 | into, or is controlled by an entity that has entered into, an | ||||||
13 | allocation agreement with the Community Development Financial | ||||||
14 | Institutions Fund of the U.S. Treasury Department with respect | ||||||
15 | to credits authorized by Section 45D of the Internal Revenue | ||||||
16 | Code of 1986, as amended, that includes the State of Illinois | ||||||
17 | within the service area set forth in that allocation | ||||||
18 | agreement. | ||||||
19 | "Qualified equity investment" means any equity investment | ||||||
20 | in, or long-term debt security issued by, a qualified | ||||||
21 | community development entity that:
| ||||||
22 | (1) is acquired after the effective date of this Act | ||||||
23 | at its original issuance solely in exchange for cash; | ||||||
24 | (2) with respect to qualified equity investments made | ||||||
25 | before January 1, 2024 2017 , has at least 85% of its cash | ||||||
26 | purchase price used by the issuer to make qualified |
| |||||||
| |||||||
1 | low-income community investments in the State of Illinois, | ||||||
2 | and, with respect to qualified equity investments made on | ||||||
3 | or after January 1, 2024 2017 , has 100% of the cash | ||||||
4 | purchase price used by the issuer to make qualified | ||||||
5 | low-income community investments in the State of Illinois; | ||||||
6 | and | ||||||
7 | (3) is designated by the issuer as a qualified equity | ||||||
8 | investment under this
Act; with respect to qualified | ||||||
9 | equity investments made on or after January 1, 2024 2017 , | ||||||
10 | is designated by the issuer as a qualified equity | ||||||
11 | investment under Section 45D of the Internal Revenue Code | ||||||
12 | of 1986, as amended; and is certified by the Department as | ||||||
13 | not exceeding the limitation contained in Section 20. | ||||||
14 | This term includes any qualified equity investment that | ||||||
15 | does not meet the provisions of item (1) of this definition if | ||||||
16 | the investment was a qualified equity investment in the hands | ||||||
17 | of a prior holder. | ||||||
18 | "Qualified low-income community investment" means any | ||||||
19 | capital or equity investment in, or loan to, any qualified | ||||||
20 | active low-income community business. With respect to any one | ||||||
21 | qualified active low-income community business, the maximum | ||||||
22 | amount of qualified low-income community investments made in | ||||||
23 | that business, on a collective basis with all of its | ||||||
24 | affiliates that may be counted towards the satisfaction of | ||||||
25 | paragraph (2) of the definition of qualified equity | ||||||
26 | investment, shall be $10,000,000 whether issued to one or |
| |||||||
| |||||||
1 | several qualified community development entities. | ||||||
2 | "Tax credit" means a credit against any income, franchise, | ||||||
3 | or insurance premium taxes, including insurance retaliatory | ||||||
4 | taxes, otherwise due under Illinois law.
| ||||||
5 | "Taxpayer" means any individual or entity subject to any | ||||||
6 | income, franchise, or insurance premium tax under Illinois | ||||||
7 | law.
| ||||||
8 | (Source: P.A. 100-408, eff. 8-25-17.) | ||||||
9 | (20 ILCS 663/20)
| ||||||
10 | Sec. 20. Annual cap on credits. The Department shall limit | ||||||
11 | the monetary amount of qualified equity investments permitted | ||||||
12 | under this Act to a level necessary to limit tax credit use at | ||||||
13 | no more than (i) $20,000,000 in of tax credits for fiscal years | ||||||
14 | beginning before July 1, 2023 and (ii) $25,000,000 in tax | ||||||
15 | credits for fiscal years beginning on or after July 1, 2023 in | ||||||
16 | any fiscal year . This limitation on qualified equity | ||||||
17 | investments shall be based on the anticipated use of credits | ||||||
18 | without regard to the potential for taxpayers to carry forward | ||||||
19 | tax credits to later tax years.
| ||||||
20 | (Source: P.A. 100-408, eff. 8-25-17.) | ||||||
21 | (20 ILCS 663/25)
| ||||||
22 | Sec. 25. Certification of qualified equity investments. | ||||||
23 | (a) A qualified community development entity that seeks to | ||||||
24 | have an equity investment or long-term debt security |
| |||||||
| |||||||
1 | designated as a qualified equity investment and eligible for | ||||||
2 | tax credits under this Section shall apply to the Department. | ||||||
3 | The qualified community development entity must submit an | ||||||
4 | application on a form that the Department provides that | ||||||
5 | includes: | ||||||
6 | (1) The name, address, tax identification number of | ||||||
7 | the entity, and evidence of the entity's certification as | ||||||
8 | a qualified community development entity. | ||||||
9 | (2) A copy of the allocation agreement executed by the | ||||||
10 | entity, or its controlling entity, and the Community | ||||||
11 | Development Financial Institutions Fund. | ||||||
12 | (3) A certificate executed by an executive officer of | ||||||
13 | the entity attesting that the allocation agreement remains | ||||||
14 | in effect and has not been revoked or cancelled by the | ||||||
15 | Community Development Financial Institutions Fund. | ||||||
16 | (4) A description of the proposed amount, structure, | ||||||
17 | and purchaser of the equity investment or long-term debt | ||||||
18 | security. | ||||||
19 | (5) The name and tax identification number of any | ||||||
20 | taxpayer eligible to utilize tax credits earned as a | ||||||
21 | result of the issuance of the qualified equity investment. | ||||||
22 | (6) Information regarding the proposed use of proceeds | ||||||
23 | from the issuance of the qualified equity investment. | ||||||
24 | (7) A nonrefundable application fee of $5,000. This | ||||||
25 | fee shall be paid to the Department and shall be required | ||||||
26 | of each application submitted. |
| |||||||
| |||||||
1 | (8) With respect to qualified equity investments made | ||||||
2 | on or after January 1, 2017, the amount of qualified | ||||||
3 | equity investment authority the applicant agrees to | ||||||
4 | designate as a federal qualified equity investment under | ||||||
5 | Section 45D of the Internal Revenue Code, including a copy | ||||||
6 | of the screen shot from the Community Development | ||||||
7 | Financial Institutions Fund's Allocation Tracking System | ||||||
8 | of the applicant's remaining federal qualified equity | ||||||
9 | investment authority. | ||||||
10 | (b) Within 30 days after receipt of a completed | ||||||
11 | application containing the information necessary for the | ||||||
12 | Department to certify a potential qualified equity investment, | ||||||
13 | including the payment of the application fee, the Department | ||||||
14 | shall grant or deny the application in full or in part. If the | ||||||
15 | Department denies any part of the application, it shall inform | ||||||
16 | the qualified community development entity of the grounds for | ||||||
17 | the denial. If the qualified community development entity | ||||||
18 | provides any additional information required by the Department | ||||||
19 | or otherwise completes its application within 15 days of the | ||||||
20 | notice of denial, the application shall be considered | ||||||
21 | completed as of the original date of submission. If the | ||||||
22 | qualified community development entity fails to provide the | ||||||
23 | information or complete its application within the 15-day | ||||||
24 | period, the application remains denied and must be resubmitted | ||||||
25 | in full with a new submission date. | ||||||
26 | (c) If the application is deemed complete, the Department |
| |||||||
| |||||||
1 | shall certify the proposed equity investment or long-term debt | ||||||
2 | security as a qualified equity investment that is eligible for | ||||||
3 | tax credits under this Section, subject to the limitations | ||||||
4 | contained in Section 20. The Department shall provide written | ||||||
5 | notice of the certification to the qualified community | ||||||
6 | development entity. The notice shall include the names of | ||||||
7 | those taxpayers who are eligible to utilize the credits and | ||||||
8 | their respective credit amounts. If the names of the taxpayers | ||||||
9 | who are eligible to utilize the credits change due to a | ||||||
10 | transfer of a qualified equity investment or a change in an | ||||||
11 | allocation pursuant to Section 15, the qualified community | ||||||
12 | development entity shall notify the Department of such change. | ||||||
13 | (d) With respect to applications received before January | ||||||
14 | 1, 2017, the Department shall certify qualified equity | ||||||
15 | investments in the order applications are received by the | ||||||
16 | Department. Applications received on the same day shall be | ||||||
17 | deemed to have been received simultaneously. For applications | ||||||
18 | received on the same day and deemed complete, the Department | ||||||
19 | shall certify, consistent with remaining tax credit capacity, | ||||||
20 | qualified equity investments in proportionate percentages | ||||||
21 | based upon the ratio of the amount of qualified equity | ||||||
22 | investment requested in an application to the total amount of | ||||||
23 | qualified equity investments requested in all applications | ||||||
24 | received on the same day. | ||||||
25 | (d-5) With respect to applications received on or after | ||||||
26 | January 1, 2017, the Department shall certify applications by |
| |||||||
| |||||||
1 | applicants that agree to designate qualified equity | ||||||
2 | investments as federal qualified equity investments in | ||||||
3 | accordance with item (8) of subsection (a) of this Section in | ||||||
4 | proportionate percentages based upon the ratio of the amount | ||||||
5 | of qualified equity investments requested in an application to | ||||||
6 | be designated as federal qualified equity investments to the | ||||||
7 | total amount of qualified equity investments to be designated | ||||||
8 | as federal qualified equity investments requested in all | ||||||
9 | applications received on the same day. | ||||||
10 | (d-10) With respect to applications received on or after | ||||||
11 | January 1, 2017, after complying with subsection (d-5), the | ||||||
12 | Department shall certify the qualified equity investments of | ||||||
13 | all other applicants, including the remaining qualified equity | ||||||
14 | investment authority requested by applicants not designated as | ||||||
15 | federal qualified equity investments in accordance with item | ||||||
16 | (8) of subsection (a) of this Section, in proportionate | ||||||
17 | percentages based upon the ratio of the amount of qualified | ||||||
18 | equity investments requested in the applications to the total | ||||||
19 | amount of qualified equity investments requested in all | ||||||
20 | applications received on the same day. | ||||||
21 | (e) Once the Department has certified qualified equity | ||||||
22 | investments that, on a cumulative basis, are eligible for | ||||||
23 | $20,000,000 in tax credits (for taxable years beginning before | ||||||
24 | July 1, 2023) or $25,000,000 in tax credits (for taxable years | ||||||
25 | beginning on or after July 1, 2023) , the Department may not | ||||||
26 | certify any more qualified equity investments. If a pending |
| |||||||
| |||||||
1 | request cannot be fully certified, the Department shall | ||||||
2 | certify the portion that may be certified unless the qualified | ||||||
3 | community development entity elects to withdraw its request | ||||||
4 | rather than receive partial credit. | ||||||
5 | (f) Within 30 days after receiving notice of | ||||||
6 | certification, the qualified community development entity | ||||||
7 | shall (i) issue the qualified equity investment and receive | ||||||
8 | cash in the amount of the certified amount and (ii) with | ||||||
9 | respect to qualified equity investments made on or after | ||||||
10 | January 1, 2017, if applicable, designate the required amount | ||||||
11 | of qualified equity investment authority as a federal | ||||||
12 | qualified equity investment. The qualified community | ||||||
13 | development entity must provide the Department with evidence | ||||||
14 | of the receipt of the cash investment within 10 business days | ||||||
15 | after receipt and, with respect to qualified equity | ||||||
16 | investments made on or after January 1, 2017, if applicable, | ||||||
17 | provide evidence that the required amount of qualified equity | ||||||
18 | investment authority was designated as a federal qualified | ||||||
19 | equity investment. If the qualified community development | ||||||
20 | entity does not receive the cash investment and issue the | ||||||
21 | qualified equity investment within 30 days following receipt | ||||||
22 | of the certification notice, the certification shall lapse and | ||||||
23 | the entity may not issue the qualified equity investment | ||||||
24 | without reapplying to the Department for certification. A | ||||||
25 | certification that lapses reverts back to the Department and | ||||||
26 | may be reissued only in accordance with the application |
| |||||||
| |||||||
1 | process outline in this Section 25.
| ||||||
2 | (g) Allocation rounds enabled by this Act shall be applied | ||||||
3 | for according to the following schedule: | ||||||
4 | (1) on January 2, 2019, $125,000,000 of qualified | ||||||
5 | equity investments; and | ||||||
6 | (2) not less than 45 days after but not more than 90 | ||||||
7 | days after the Community Development Financial | ||||||
8 | Institutions Fund of the United States Department of the | ||||||
9 | Treasury announces allocation awards under a Notice of | ||||||
10 | Funding Availability that is published in the Federal | ||||||
11 | Register after September 6, 2019, $125,000,000 of | ||||||
12 | qualified equity investments ; and . | ||||||
13 | (3) on or after January 1, 2024, but not more than 120 | ||||||
14 | days after the Community Development Financial | ||||||
15 | Institutions Fund of the United States Department of the | ||||||
16 | Treasury announces allocation awards under a Notice of | ||||||
17 | Funding Availability that was published in the Federal | ||||||
18 | Register on November 22, 2022, $312,500,000 of qualified | ||||||
19 | equity investments. | ||||||
20 | (Source: P.A. 100-408, eff. 8-25-17; 101-604, eff. 12-13-19.) | ||||||
21 | (20 ILCS 663/45)
| ||||||
22 | Sec. 45. Examination and Rulemaking. | ||||||
23 | (a) The Department may conduct examinations to verify that | ||||||
24 | the tax credits under this Act have been received and applied | ||||||
25 | according to the requirements of this Act and to verify that no |
| |||||||
| |||||||
1 | event has occurred that would result in a recapture of tax | ||||||
2 | credits under Section 40. | ||||||
3 | (b) Neither the Department nor the Department of Revenue | ||||||
4 | shall have the authority to promulgate rules under the Act, | ||||||
5 | but , with respect to qualified equity investments issued | ||||||
6 | before January 1, 2024, the Department and the Department of | ||||||
7 | Revenue shall have the authority to issue advisory letters to | ||||||
8 | individual qualified community development entities and their | ||||||
9 | investors that are limited to the specific facts outlined in | ||||||
10 | an advisory letter request from a qualified community | ||||||
11 | development entity. Such rulings cannot be relied upon by any | ||||||
12 | person or entity other than the qualified community | ||||||
13 | development entity that requested the letter and the taxpayers | ||||||
14 | that are entitled to any tax credits generated from | ||||||
15 | investments in such entity. For purposes of this subsection, | ||||||
16 | "rules" is given the meaning contained in Section 1-70 of the | ||||||
17 | Illinois Administrative Procedure Act. | ||||||
18 | (c) In rendering advisory letters and making other | ||||||
19 | determinations under this Act prior to January 1, 2024 , to the | ||||||
20 | extent applicable, the Department and the Department of | ||||||
21 | Revenue shall look for guidance to Section 45D of the Internal | ||||||
22 | Revenue Code of 1986, as amended, and the rules and | ||||||
23 | regulations issued thereunder.
| ||||||
24 | (d) It is the intent of the General Assembly that | ||||||
25 | qualified equity investment structures allowed pursuant to | ||||||
26 | advisory letters and other determinations by the Department |
| |||||||
| |||||||
1 | and the Department of Revenue prior to January 1, 2024 shall be | ||||||
2 | allowed and that qualified community development entities may | ||||||
3 | rely on the rules and regulations issued under Section 45D of | ||||||
4 | the Internal Revenue Code of 1986, as amended, where | ||||||
5 | applicable. | ||||||
6 | (Source: P.A. 95-1024, eff. 12-31-08.) | ||||||
7 | (20 ILCS 663/50)
| ||||||
8 | Sec. 50. Sunset. For fiscal years following fiscal year | ||||||
9 | 2031 2024 , qualified equity investments shall not be made | ||||||
10 | under this Act unless reauthorization is made pursuant to this | ||||||
11 | Section. For all fiscal years following fiscal year 2031 2024 , | ||||||
12 | unless the General Assembly adopts a joint resolution granting | ||||||
13 | authority to the Department to approve qualified equity | ||||||
14 | investments for the Illinois new markets development program | ||||||
15 | and clearly describing the amount of tax credits available for | ||||||
16 | the next fiscal year, or otherwise complies with the | ||||||
17 | provisions of this Section, no qualified equity investments | ||||||
18 | may be permitted to be made under this Act. The amount of | ||||||
19 | available tax credits contained in such a resolution shall not | ||||||
20 | exceed the limitation provided under Section 20. Nothing in | ||||||
21 | this Section precludes a taxpayer who makes a qualified equity | ||||||
22 | investment prior to the expiration of authority to make | ||||||
23 | qualified equity investments from claiming tax credits | ||||||
24 | relating to that qualified equity investment for each | ||||||
25 | applicable credit allowance date.
|
| |||||||
| |||||||
1 | (Source: P.A. 102-16, eff. 6-17-21.) | ||||||
2 | ARTICLE 65. STANDARD EXEMPTION | ||||||
3 | Section 65-5. The Illinois Income Tax Act is amended by | ||||||
4 | changing Section 204 as follows:
| ||||||
5 | (35 ILCS 5/204) (from Ch. 120, par. 2-204)
| ||||||
6 | Sec. 204. Standard exemption.
| ||||||
7 | (a) Allowance of exemption. In computing net income under | ||||||
8 | this Act, there
shall be allowed as an exemption the sum of the | ||||||
9 | amounts determined under
subsections (b), (c) and (d), | ||||||
10 | multiplied by a fraction the numerator of which
is the amount | ||||||
11 | of the taxpayer's base income allocable to this State for the
| ||||||
12 | taxable year and the denominator of which is the taxpayer's | ||||||
13 | total base income
for the taxable year.
| ||||||
14 | (b) Basic amount. For the purpose of subsection (a) of | ||||||
15 | this Section,
except as provided by subsection (a) of Section | ||||||
16 | 205 and in this
subsection, each taxpayer shall be allowed a | ||||||
17 | basic amount of $1000, except
that for corporations the basic | ||||||
18 | amount shall be zero for tax years ending on
or
after December | ||||||
19 | 31, 2003, and for individuals the basic amount shall be:
| ||||||
20 | (1) for taxable years ending on or after December 31, | ||||||
21 | 1998 and prior to
December 31, 1999, $1,300;
| ||||||
22 | (2) for taxable years ending on or after December 31, | ||||||
23 | 1999 and prior to
December 31, 2000, $1,650;
|
| |||||||
| |||||||
1 | (3) for taxable years ending on or after December 31, | ||||||
2 | 2000 and prior to December 31, 2012, $2,000;
| ||||||
3 | (4) for taxable years ending on or after December 31, | ||||||
4 | 2012 and prior to December 31, 2013, $2,050; | ||||||
5 | (5) for taxable years ending on or after December 31, | ||||||
6 | 2013 and on or before December 31, 2022 December 31, 2023 , | ||||||
7 | $2,050 plus the cost-of-living adjustment under subsection | ||||||
8 | (d-5) ; . | ||||||
9 | (6) for taxable years ending on or after December 31, | ||||||
10 | 2023 and prior to December 31, 2024, $2,425; | ||||||
11 | (7) for taxable years ending on or after December 31, | ||||||
12 | 2024 and on or before December 31, 2028, $2,050 plus the | ||||||
13 | cost-of-living adjustment under subsection (d-5). | ||||||
14 | For taxable years ending on or after December 31, 1992, a | ||||||
15 | taxpayer whose
Illinois base income exceeds the basic amount | ||||||
16 | and who is claimed as a dependent
on another person's tax | ||||||
17 | return under the Internal Revenue Code shall
not be allowed | ||||||
18 | any basic amount under this subsection.
| ||||||
19 | (c) Additional amount for individuals. In the case of an | ||||||
20 | individual
taxpayer, there shall be allowed for the purpose of | ||||||
21 | subsection (a), in
addition to the basic amount provided by | ||||||
22 | subsection (b), an additional
exemption equal to the basic | ||||||
23 | amount for each
exemption in excess of one
allowable to such | ||||||
24 | individual taxpayer for the taxable year under Section
151 of | ||||||
25 | the Internal Revenue Code.
| ||||||
26 | (d) Additional exemptions for an individual taxpayer and |
| |||||||
| |||||||
1 | his or her
spouse. In the case of an individual taxpayer and | ||||||
2 | his or her spouse, he or
she shall each be allowed additional | ||||||
3 | exemptions as follows:
| ||||||
4 | (1) Additional exemption for taxpayer or spouse 65 | ||||||
5 | years of age or older.
| ||||||
6 | (A) For taxpayer. An additional exemption of | ||||||
7 | $1,000 for the taxpayer if
he or she has attained the | ||||||
8 | age of 65 before the end of the taxable year.
| ||||||
9 | (B) For spouse when a joint return is not filed. An | ||||||
10 | additional
exemption of $1,000 for the spouse of the | ||||||
11 | taxpayer if a joint return is not
made by the taxpayer | ||||||
12 | and his spouse, and if the spouse has attained the age
| ||||||
13 | of 65 before the end of such taxable year, and, for the | ||||||
14 | calendar year in
which the taxable year of the | ||||||
15 | taxpayer begins, has no gross income and is
not the | ||||||
16 | dependent of another taxpayer.
| ||||||
17 | (2) Additional exemption for blindness of taxpayer or | ||||||
18 | spouse.
| ||||||
19 | (A) For taxpayer. An additional exemption of | ||||||
20 | $1,000 for the taxpayer if
he or she is blind at the | ||||||
21 | end of the taxable year.
| ||||||
22 | (B) For spouse when a joint return is not filed. An | ||||||
23 | additional
exemption of $1,000 for the spouse of the | ||||||
24 | taxpayer if a separate return is made
by the taxpayer, | ||||||
25 | and if the spouse is blind and, for the calendar year | ||||||
26 | in which
the taxable year of the taxpayer begins, has |
| |||||||
| |||||||
1 | no gross income and is not the
dependent of another | ||||||
2 | taxpayer. For purposes of this paragraph, the
| ||||||
3 | determination of whether the spouse is blind shall be | ||||||
4 | made as of the end of the
taxable year of the taxpayer; | ||||||
5 | except that if the spouse dies during such
taxable | ||||||
6 | year such determination shall be made as of the time of | ||||||
7 | such death.
| ||||||
8 | (C) Blindness defined. For purposes of this | ||||||
9 | subsection, an individual
is blind only if his or her | ||||||
10 | central visual acuity does not exceed 20/200 in
the | ||||||
11 | better eye with correcting lenses, or if his or her | ||||||
12 | visual acuity is
greater than 20/200 but is | ||||||
13 | accompanied by a limitation in the fields of
vision | ||||||
14 | such that the widest diameter of the visual fields | ||||||
15 | subtends an angle
no greater than 20 degrees.
| ||||||
16 | (d-5) Cost-of-living adjustment. For purposes of item (5) | ||||||
17 | of subsection (b), the cost-of-living adjustment for any | ||||||
18 | calendar year and for taxable years ending prior to the end of | ||||||
19 | the subsequent calendar year is equal to $2,050 times the | ||||||
20 | percentage (if any) by which: | ||||||
21 | (1) the Consumer Price Index for the preceding | ||||||
22 | calendar year, exceeds | ||||||
23 | (2) the Consumer Price Index for the calendar year | ||||||
24 | 2011. | ||||||
25 | The Consumer Price Index for any calendar year is the | ||||||
26 | average of the Consumer Price Index as of the close of the |
| |||||||
| |||||||
1 | 12-month period ending on August 31 of that calendar year. | ||||||
2 | The term "Consumer Price Index" means the last Consumer | ||||||
3 | Price Index for All Urban Consumers published by the United | ||||||
4 | States Department of Labor or any successor agency. | ||||||
5 | If any cost-of-living adjustment is not a multiple of $25, | ||||||
6 | that adjustment shall be rounded to the next lowest multiple | ||||||
7 | of $25. | ||||||
8 | (e) Cross reference. See Article 3 for the manner of | ||||||
9 | determining
base income allocable to this State.
| ||||||
10 | (f) Application of Section 250. Section 250 does not apply | ||||||
11 | to the
amendments to this Section made by Public Act 90-613.
| ||||||
12 | (g) Notwithstanding any other provision of law, for | ||||||
13 | taxable years beginning on or after January 1, 2017, no | ||||||
14 | taxpayer may claim an exemption under this Section if the | ||||||
15 | taxpayer's adjusted gross income for the taxable year exceeds | ||||||
16 | (i) $500,000, in the case of spouses filing a joint federal tax | ||||||
17 | return or (ii) $250,000, in the case of all other taxpayers. | ||||||
18 | (Source: P.A. 100-22, eff. 7-6-17; 100-865, eff. 8-14-18.)
| ||||||
19 | ARTICLE 70. AVIATION FUEL | ||||||
20 | Section 70-5. The Use Tax Act is amended by changing | ||||||
21 | Section 3-87 as follows: | ||||||
22 | (35 ILCS 105/3-87) | ||||||
23 | Sec. 3-87. Sustainable Aviation Fuel Purchase Credit. |
| |||||||
| |||||||
1 | (a) From July 1, 2023 through December 31, 2032 June 1, | ||||||
2 | 2023 through January 1, 2033 , sustainable aviation fuel sold | ||||||
3 | to or used by an air common carrier, certified by the carrier | ||||||
4 | to the Department to be used in Illinois, earns a credit in the | ||||||
5 | amount of $1.50 per gallon of sustainable aviation fuel | ||||||
6 | purchased. The credit earned shall be referred to as the | ||||||
7 | Sustainable Aviation Fuel Purchase Credit. | ||||||
8 | Only that portion of each gallon of aviation fuel that | ||||||
9 | consists of sustainable aviation fuel, as defined in this | ||||||
10 | Section, is eligible to earn the credit. | ||||||
11 | The credit is earned at the time sustainable aviation fuel | ||||||
12 | is purchased for use in Illinois. The amount of credit that is | ||||||
13 | earned is based on the number of whole gallons of sustainable | ||||||
14 | aviation fuel purchased for use in Illinois. Partial gallons | ||||||
15 | will not earn a credit. Credits may be used at the same time as | ||||||
16 | they are earned. | ||||||
17 | For a sale or use of aviation fuel to qualify to earn the | ||||||
18 | Sustainable Aviation Fuel Purchase Credit, taxpayers must | ||||||
19 | retain in their books and records a certification from the | ||||||
20 | producer of the aviation fuel that the aviation fuel sold or | ||||||
21 | used and for which a sustainable aviation fuel purchase credit | ||||||
22 | was earned meets the definition of sustainable aviation fuel | ||||||
23 | under this Section. The documentation must include detail | ||||||
24 | sufficient for the Department to determine the number of | ||||||
25 | gallons of sustainable aviation fuel sold or used. | ||||||
26 | A Sustainable Aviation Fuel Purchase Credit earned by an |
| |||||||
| |||||||
1 | air common carrier expires on December 31, 2032. The | ||||||
2 | Sustainable Aviation Fuel Purchase Credit is non-transferable | ||||||
3 | and non-refundable. Taxpayers shall account for the earning | ||||||
4 | and usage of Sustainable Aviation Fuel Purchase Credits on | ||||||
5 | each monthly return filed with the Department, as deemed | ||||||
6 | necessary by the Department. | ||||||
7 | The purchaser of sustainable aviation fuel shall certify | ||||||
8 | to the seller of the aviation fuel that the purchaser is | ||||||
9 | satisfying all or part of its liability for the 6.25% tax under | ||||||
10 | the Use Tax Act or the Service Use Tax Act that is due on the | ||||||
11 | purchase of aviation fuel by use of the sustainable aviation | ||||||
12 | fuel purchase credit. | ||||||
13 | The Sustainable Aviation Fuel Purchase Credit | ||||||
14 | certification must be dated and shall include the name and | ||||||
15 | address of the purchaser, the purchaser's registration number, | ||||||
16 | if registered, the credit being applied, and a statement that | ||||||
17 | the State Use Tax or Service Use Tax use tax or service use tax | ||||||
18 | liability is being satisfied with the air common carrier's | ||||||
19 | accumulated sustainable aviation fuel purchase credit. | ||||||
20 | An air common carrier-purchaser of aviation fuel may | ||||||
21 | utilize the Sustainable Aviation Fuel Purchase Credit in | ||||||
22 | satisfaction of the 6.25% tax arising from the purchase of | ||||||
23 | aviation fuel, but not in satisfaction of penalty or interest. | ||||||
24 | Until January 1, 2033 July 1, 2033 , on an annual basis, | ||||||
25 | running from January through December each year, no credit may | ||||||
26 | be earned by an air common carrier for soybean oil-derived |
| |||||||
| |||||||
1 | sustainable aviation fuel once air common carriers in this | ||||||
2 | State have collectively purchased sustainable aviation fuel | ||||||
3 | containing 10,000,000 gallons of soybean oil feedstock. If, in | ||||||
4 | any year, air common carriers collectively purchase | ||||||
5 | sustainable aviation fuel containing more than 10,000,000 | ||||||
6 | gallons of soybean oil feedstock for use in this State, then, | ||||||
7 | in the month in which taxpayer reporting shows that the credit | ||||||
8 | earned from these purchases exceeds the cap, the Department | ||||||
9 | shall first determine the remaining number of gallons of | ||||||
10 | soybean oil feedstock available to earn the credit for that | ||||||
11 | year by subtracting from 10,000,000 the number of gallons of | ||||||
12 | soybean oil feedstock collectively purchased that year based | ||||||
13 | on the prior month's taxpayer reporting. The Department shall | ||||||
14 | then allocate the credit from these remaining gallons of | ||||||
15 | soybean oil feedstock available to earn the credit for that | ||||||
16 | year by allowing credit to each air common carrier in the same | ||||||
17 | proportion as the number of gallons of soybean oil feedstock | ||||||
18 | reported as having been purchased by each air common carrier | ||||||
19 | during the month in which the cap is exceeded is to all of the | ||||||
20 | gallons of soybean oil feedstock reported as having been | ||||||
21 | purchased during that month. The earning of any credit in | ||||||
22 | excess of this shall be disallowed for the remainder of the | ||||||
23 | year. For any credit that was used, the earning of which was | ||||||
24 | disallowed in the process described in this paragraph, any | ||||||
25 | resulting tax shall be due on or before April 20th of the year | ||||||
26 | following the year in which the 10,000,000 gallon cap on |
| |||||||
| |||||||
1 | soybean oil feedstock was exceeded and shall be reported and | ||||||
2 | paid on the aviation fuel tax return. Any credit that is earned | ||||||
3 | for the purchase of soybean oil feedstock but not timely | ||||||
4 | reported in a year in which the cap is exceeded is disallowed. | ||||||
5 | A Sustainable Aviation Fuel Purchase Credit certification | ||||||
6 | provided by the air common carrier may be used to satisfy the | ||||||
7 | retailer's or serviceman's 6.25% tax liability on aviation | ||||||
8 | fuel under the Retailers' Occupation Tax Act or Service | ||||||
9 | Occupation Tax Act for the credit claimed. | ||||||
10 | (b) As used in this Section, "sustainable aviation fuel" | ||||||
11 | means liquid fuel that meets the criteria set forth in | ||||||
12 | subsections (d) and (e) of Section 40B of the federal Internal | ||||||
13 | Revenue Code of 1986 or: | ||||||
14 | (1) consists of synthesized hydrocarbons and meets the | ||||||
15 | requirements of: | ||||||
16 | (A) the American Society for Testing and Materials | ||||||
17 | International Standard D7566; or | ||||||
18 | (B) the Fischer-Tropsch provisions of American | ||||||
19 | Society for Testing and Materials International | ||||||
20 | Standard D1655, Annex A1; | ||||||
21 | (2) prior to June 1, 2028, is derived from biomass | ||||||
22 | resources, waste streams, renewable energy sources, or | ||||||
23 | gaseous carbon oxides, and beginning on June 1, 2028 is | ||||||
24 | derived from domestic biomass resources; | ||||||
25 | (3) is not derived from any palm derivatives; and | ||||||
26 | (4) the fuel production pathway for the sustainable |
| |||||||
| |||||||
1 | aviation fuel achieves at least a 50% lifecycle greenhouse | ||||||
2 | gas emissions reduction in comparison with petroleum-based | ||||||
3 | jet fuel, as determined by a test that shows: | ||||||
4 | (A) that the fuel production pathway achieves at | ||||||
5 | least a 50% reduction of the aggregate attributional | ||||||
6 | core lifecycle emissions and the positive induced land | ||||||
7 | use change values under the lifecycle methodology for | ||||||
8 | sustainable aviation fuels adopted by the | ||||||
9 | International Civil Aviation Organization with the | ||||||
10 | agreement of the United States; or | ||||||
11 | (B) that the fuel production pathway achieves at | ||||||
12 | least a 50% reduction of the aggregate attributional | ||||||
13 | core lifecycle greenhouse gas emissions values | ||||||
14 | utilizing the most recent version of Argonne National | ||||||
15 | Laboratory's GREET model, inclusive of agricultural | ||||||
16 | practices and carbon capture and sequestration.
| ||||||
17 | (Source: P.A. 102-1125, eff. 2-3-23.) | ||||||
18 | Section 70-10. The Service Use Tax Act is amended by | ||||||
19 | changing Section 3-72 as follows: | ||||||
20 | (35 ILCS 110/3-72) | ||||||
21 | Sec. 3-72. Sustainable Aviation Fuel Purchase Credit. | ||||||
22 | (a) From July 1, 2023 through December 31, 2032 June 1, | ||||||
23 | 2023 through January 1, 2033 , sustainable aviation fuel sold | ||||||
24 | to or used by an air common carrier, certified by the carrier |
| |||||||
| |||||||
1 | to the Department to be used in Illinois, earns a credit in the | ||||||
2 | amount of $1.50 per gallon of sustainable aviation fuel | ||||||
3 | purchased. The credit earned shall be referred to as the | ||||||
4 | Sustainable Aviation Fuel Purchase Credit. | ||||||
5 | Only that portion of each gallon of aviation fuel that | ||||||
6 | consists of sustainable aviation fuel, as defined in this | ||||||
7 | Section, is eligible to earn the credit. | ||||||
8 | The credit is earned at the time sustainable aviation fuel | ||||||
9 | is purchased for use in Illinois. The amount of credit that is | ||||||
10 | earned is based on the number of whole gallons of sustainable | ||||||
11 | aviation fuel purchased for use in Illinois. Partial gallons | ||||||
12 | will not earn a credit. Credits may be used at the same time as | ||||||
13 | they are earned. | ||||||
14 | For a sale or use of aviation fuel to qualify to earn the | ||||||
15 | Sustainable Aviation Fuel Purchase Credit, taxpayers must | ||||||
16 | retain in their books and records a certification from the | ||||||
17 | producer of the aviation fuel that the aviation fuel sold or | ||||||
18 | used and for which a sustainable aviation fuel purchase credit | ||||||
19 | was earned meets the definition of sustainable aviation fuel | ||||||
20 | under this Section. The documentation must include detail | ||||||
21 | sufficient for the Department to determine the number of | ||||||
22 | gallons of sustainable aviation fuel sold or used. | ||||||
23 | A Sustainable Aviation Fuel Purchase Credit earned by an | ||||||
24 | air common carrier expires on December 31, 2032. The | ||||||
25 | Sustainable Aviation Fuel Purchase Credit is a | ||||||
26 | non-transferable and non-refundable credit. Taxpayers shall |
| |||||||
| |||||||
1 | account for the earning and usage of Sustainable Aviation Fuel | ||||||
2 | Purchase Credits on each monthly return filed with the | ||||||
3 | Department, as deemed necessary by the Department. | ||||||
4 | The purchaser of sustainable aviation fuel shall certify | ||||||
5 | to the seller of the aviation fuel that the purchaser is | ||||||
6 | satisfying all or part of its liability for the 6.25% tax under | ||||||
7 | the Use Tax Act or the Service Use Tax Act that is due on the | ||||||
8 | purchase of aviation fuel by use of the sustainable aviation | ||||||
9 | fuel purchase credit. | ||||||
10 | The Sustainable Aviation Fuel Purchase Credit | ||||||
11 | certification must be dated and shall include the name and | ||||||
12 | address of the purchaser, the purchaser's registration number, | ||||||
13 | if registered, the credit being applied, and a statement that | ||||||
14 | the State Use Tax or Service Use Tax use tax or service use tax | ||||||
15 | liability is being satisfied with the air common carrier's | ||||||
16 | accumulated sustainable aviation fuel purchase credit. | ||||||
17 | An air common carrier-purchaser of aviation fuel may | ||||||
18 | utilize the Sustainable Aviation Fuel Purchase Credit in | ||||||
19 | satisfaction of the 6.25% tax arising from the purchase of | ||||||
20 | aviation fuel, but not in satisfaction of penalty or interest. | ||||||
21 | Until January 1, 2033 July 1, 2033 , on an annual basis | ||||||
22 | running from January through December each year , no credit may | ||||||
23 | be earned by an air common carrier for soybean oil-derived | ||||||
24 | sustainable aviation fuel once air common carriers in this | ||||||
25 | State have collectively purchased sustainable aviation fuel | ||||||
26 | containing 10,000,000 gallons of soybean oil feedstock. If, in |
| |||||||
| |||||||
1 | any year, air common carriers collectively purchase | ||||||
2 | sustainable aviation fuel containing more than 10,000,000 | ||||||
3 | gallons of soybean oil feedstock for use in this State, then, | ||||||
4 | in the month in which taxpayer reporting shows that the credit | ||||||
5 | earned from these purchases exceeds the cap, the Department | ||||||
6 | shall first determine the remaining number of gallons of | ||||||
7 | soybean oil feedstock available to earn the credit for that | ||||||
8 | year by subtracting from 10,000,000 the number of gallons of | ||||||
9 | soybean oil feedstock collectively purchased that year based | ||||||
10 | on the prior month's taxpayer reporting. The Department shall | ||||||
11 | then allocate the credit from these remaining gallons of | ||||||
12 | soybean oil feedstock available to earn the credit for that | ||||||
13 | year by allowing credit to each air common carrier in the same | ||||||
14 | proportion as the number of gallons of soybean oil feedstock | ||||||
15 | reported as having been purchased by each air common carrier | ||||||
16 | during the month in which the cap is exceeded is to all of the | ||||||
17 | gallons of soybean oil feedstock reported as having been | ||||||
18 | purchased during that month. The earning of any credit in | ||||||
19 | excess of this shall be disallowed for the remainder of the | ||||||
20 | year. For any credit that was used, the earning of which was | ||||||
21 | disallowed in the process described in this paragraph, any | ||||||
22 | resulting tax shall be due on or before April 20th of the year | ||||||
23 | following the year in which the 10,000,000 gallon cap on | ||||||
24 | soybean oil feedstock was exceeded and shall be reported and | ||||||
25 | paid on the aviation fuel tax return. Any credit that is earned | ||||||
26 | for the purchase of soybean oil feedstock but not timely |
| |||||||
| |||||||
1 | reported in a year in which the cap is exceeded is disallowed. | ||||||
2 | A Sustainable Aviation Fuel Purchase Credit certification | ||||||
3 | provided by the air common carrier may be used to satisfy the | ||||||
4 | retailer's or serviceman's 6.25% tax liability on aviation | ||||||
5 | fuel under the Retailers' Occupation Tax Act or Service | ||||||
6 | Occupation Tax Act for the credit claimed. | ||||||
7 | (b) As used in this Section, "sustainable aviation fuel" | ||||||
8 | means liquid fuel that meets the criteria set forth in | ||||||
9 | subsections (d) and (e) of Section 40B of the federal Internal | ||||||
10 | Revenue Code of 1986 or: | ||||||
11 | (1) consists of synthesized hydrocarbons and meets the | ||||||
12 | requirements of: | ||||||
13 | (A) the American Society for Testing and Materials | ||||||
14 | International Standard D7566; or | ||||||
15 | (B) the Fischer-Tropsch provisions of American | ||||||
16 | Society for Testing and Materials International | ||||||
17 | Standard D1655, Annex A1; | ||||||
18 | (2) prior to June 1, 2028, is derived from biomass | ||||||
19 | resources, waste streams, renewable energy sources, or | ||||||
20 | gaseous carbon oxides, and beginning on June 1, 2028 is | ||||||
21 | derived from domestic biomass resources; | ||||||
22 | (3) is not derived from any palm derivatives; and | ||||||
23 | (4) the fuel production pathway for the sustainable | ||||||
24 | aviation fuel achieves at least a 50% lifecycle greenhouse | ||||||
25 | gas emissions reduction in comparison with petroleum-based | ||||||
26 | jet fuel, as determined by a test that shows: |
| |||||||
| |||||||
1 | (A) that the fuel production pathway achieves at | ||||||
2 | least a 50% reduction of the aggregate attributional | ||||||
3 | core lifecycle emissions and the positive induced land | ||||||
4 | use change values under the lifecycle methodology for | ||||||
5 | sustainable aviation fuels adopted by the | ||||||
6 | International Civil Aviation Organization with the | ||||||
7 | agreement of the United States; or | ||||||
8 | (B) that the fuel production pathway achieves at | ||||||
9 | least a 50% reduction of the aggregate attributional | ||||||
10 | core lifecycle greenhouse gas emissions values | ||||||
11 | utilizing the most recent version of Argonne National | ||||||
12 | Laboratory's GREET model, inclusive of agricultural | ||||||
13 | practices and carbon capture and sequestration.
| ||||||
14 | (Source: P.A. 102-1125, eff. 2-3-23.) | ||||||
15 | Section 70-15. The Service Occupation Tax Act is amended | ||||||
16 | by changing Section 9 as follows:
| ||||||
17 | (35 ILCS 115/9) (from Ch. 120, par. 439.109)
| ||||||
18 | Sec. 9. Each serviceman required or authorized to collect | ||||||
19 | the tax
herein imposed shall pay to the Department the amount | ||||||
20 | of such tax at the
time when he is required to file his return | ||||||
21 | for the period during which
such tax was collectible, less a | ||||||
22 | discount of 2.1% prior to
January 1, 1990, and 1.75% on and | ||||||
23 | after January 1, 1990, or
$5 per calendar year, whichever is | ||||||
24 | greater, which is allowed to reimburse
the serviceman for |
| |||||||
| |||||||
1 | expenses incurred in collecting the tax, keeping
records, | ||||||
2 | preparing and filing returns, remitting the tax and supplying | ||||||
3 | data
to the Department on request. When determining the | ||||||
4 | discount allowed under this Section, servicemen shall include | ||||||
5 | the amount of tax that would have been due at the 1% rate but | ||||||
6 | for the 0% rate imposed under this amendatory Act of the 102nd | ||||||
7 | General Assembly. The discount under this Section is not | ||||||
8 | allowed for the 1.25% portion of taxes paid on aviation fuel | ||||||
9 | that is subject to the revenue use requirements of 49 U.S.C. | ||||||
10 | 47107(b) and 49 U.S.C. 47133. The discount allowed under this | ||||||
11 | Section is allowed only for returns that are filed in the | ||||||
12 | manner required by this Act. The Department may disallow the | ||||||
13 | discount for servicemen whose certificate of registration is | ||||||
14 | revoked at the time the return is filed, but only if the | ||||||
15 | Department's decision to revoke the certificate of | ||||||
16 | registration has become final. | ||||||
17 | Where such tangible personal property is sold under a | ||||||
18 | conditional
sales contract, or under any other form of sale | ||||||
19 | wherein the payment of
the principal sum, or a part thereof, is | ||||||
20 | extended beyond the close of
the period for which the return is | ||||||
21 | filed, the serviceman, in collecting
the tax may collect, for | ||||||
22 | each tax return period, only the tax applicable
to the part of | ||||||
23 | the selling price actually received during such tax return
| ||||||
24 | period. | ||||||
25 | Except as provided hereinafter in this Section, on or | ||||||
26 | before the twentieth
day of each calendar month, such |
| |||||||
| |||||||
1 | serviceman shall file a
return for the preceding calendar | ||||||
2 | month in accordance with reasonable
rules and regulations to | ||||||
3 | be promulgated by the Department of Revenue.
Such return shall | ||||||
4 | be filed on a form prescribed by the Department and
shall | ||||||
5 | contain such information as the Department may reasonably | ||||||
6 | require. The return shall include the gross receipts which | ||||||
7 | were received during the preceding calendar month or quarter | ||||||
8 | on the following items upon which tax would have been due but | ||||||
9 | for the 0% rate imposed under this amendatory Act of the 102nd | ||||||
10 | General Assembly: (i) food for human consumption that is to be | ||||||
11 | consumed off the premises where it is sold (other than | ||||||
12 | alcoholic beverages, food consisting of or infused with adult | ||||||
13 | use cannabis, soft drinks, and food that has been prepared for | ||||||
14 | immediate consumption); and (ii) food prepared for immediate | ||||||
15 | consumption and transferred incident to a sale of service | ||||||
16 | subject to this Act or the Service Use Tax Act by an entity | ||||||
17 | licensed under the Hospital Licensing Act, the Nursing Home | ||||||
18 | Care Act, the Assisted Living and Shared Housing Act, the | ||||||
19 | ID/DD Community Care Act, the MC/DD Act, the Specialized | ||||||
20 | Mental Health Rehabilitation Act of 2013, or the Child Care | ||||||
21 | Act of 1969, or an entity that holds a permit issued pursuant | ||||||
22 | to the Life Care Facilities Act. The return shall also include | ||||||
23 | the amount of tax that would have been due on the items listed | ||||||
24 | in the previous sentence but for the 0% rate imposed under this | ||||||
25 | amendatory Act of the 102nd General Assembly. | ||||||
26 | On and after January 1, 2018, with respect to servicemen |
| |||||||
| |||||||
1 | whose annual gross receipts average $20,000 or more, all | ||||||
2 | returns required to be filed pursuant to this Act shall be | ||||||
3 | filed electronically. Servicemen who demonstrate that they do | ||||||
4 | not have access to the Internet or demonstrate hardship in | ||||||
5 | filing electronically may petition the Department to waive the | ||||||
6 | electronic filing requirement. | ||||||
7 | The Department may require returns to be filed on a | ||||||
8 | quarterly basis.
If so required, a return for each calendar | ||||||
9 | quarter shall be filed on or
before the twentieth day of the | ||||||
10 | calendar month following the end of such
calendar quarter. The | ||||||
11 | taxpayer shall also file a return with the
Department for each | ||||||
12 | of the first two months of each calendar quarter, on or
before | ||||||
13 | the twentieth day of the following calendar month, stating: | ||||||
14 | 1. The name of the seller; | ||||||
15 | 2. The address of the principal place of business from | ||||||
16 | which he engages
in business as a serviceman in this | ||||||
17 | State; | ||||||
18 | 3. The total amount of taxable receipts received by | ||||||
19 | him during the
preceding calendar month, including | ||||||
20 | receipts from charge and time sales,
but less all | ||||||
21 | deductions allowed by law; | ||||||
22 | 4. The amount of credit provided in Section 2d of this | ||||||
23 | Act; | ||||||
24 | 5. The amount of tax due; | ||||||
25 | 5-5. The signature of the taxpayer; and | ||||||
26 | 6. Such other reasonable information as the Department |
| |||||||
| |||||||
1 | may
require. | ||||||
2 | Each serviceman required or authorized to collect the tax | ||||||
3 | herein imposed on aviation fuel acquired as an incident to the | ||||||
4 | purchase of a service in this State during the preceding | ||||||
5 | calendar month shall, instead of reporting and paying tax as | ||||||
6 | otherwise required by this Section, report and pay such tax on | ||||||
7 | a separate aviation fuel tax return. The requirements related | ||||||
8 | to the return shall be as otherwise provided in this Section. | ||||||
9 | Notwithstanding any other provisions of this Act to the | ||||||
10 | contrary, servicemen transferring aviation fuel incident to | ||||||
11 | sales of service shall file all aviation fuel tax returns and | ||||||
12 | shall make all aviation fuel tax payments by electronic means | ||||||
13 | in the manner and form required by the Department. For | ||||||
14 | purposes of this Section, "aviation fuel" means jet fuel and | ||||||
15 | aviation gasoline. | ||||||
16 | If a taxpayer fails to sign a return within 30 days after | ||||||
17 | the proper notice
and demand for signature by the Department, | ||||||
18 | the return shall be considered
valid and any amount shown to be | ||||||
19 | due on the return shall be deemed assessed. | ||||||
20 | Notwithstanding any other provision of this Act to the | ||||||
21 | contrary, servicemen subject to tax on cannabis shall file all | ||||||
22 | cannabis tax returns and shall make all cannabis tax payments | ||||||
23 | by electronic means in the manner and form required by the | ||||||
24 | Department. | ||||||
25 | Prior to October 1, 2003, and on and after September 1, | ||||||
26 | 2004 a serviceman may accept a Manufacturer's
Purchase Credit |
| |||||||
| |||||||
1 | certification
from a purchaser in satisfaction
of Service Use | ||||||
2 | Tax as provided in Section 3-70 of the
Service Use Tax Act if | ||||||
3 | the purchaser provides
the
appropriate
documentation as | ||||||
4 | required by Section 3-70 of the Service Use Tax Act.
A | ||||||
5 | Manufacturer's Purchase Credit certification, accepted prior | ||||||
6 | to October 1,
2003 or on or after September 1, 2004 by a | ||||||
7 | serviceman as
provided in Section 3-70 of the Service Use Tax | ||||||
8 | Act, may be used by that
serviceman to satisfy Service | ||||||
9 | Occupation Tax liability in the amount claimed in
the | ||||||
10 | certification, not to exceed 6.25% of the receipts subject to | ||||||
11 | tax from a
qualifying purchase. A Manufacturer's Purchase | ||||||
12 | Credit reported on any
original or amended return
filed under
| ||||||
13 | this Act after October 20, 2003 for reporting periods prior to | ||||||
14 | September 1, 2004 shall be disallowed. Manufacturer's Purchase | ||||||
15 | Credit reported on annual returns due on or after January 1, | ||||||
16 | 2005 will be disallowed for periods prior to September 1, | ||||||
17 | 2004.
No Manufacturer's
Purchase Credit may be used after | ||||||
18 | September 30, 2003 through August 31, 2004 to
satisfy any
tax | ||||||
19 | liability imposed under this Act, including any audit | ||||||
20 | liability. | ||||||
21 | Beginning on July 1, 2023 and through December 31, 2032, a | ||||||
22 | serviceman may accept a Sustainable Aviation Fuel Purchase | ||||||
23 | Credit certification from an air common carrier-purchaser in | ||||||
24 | satisfaction of Service Use Tax as provided in Section 3-72 of | ||||||
25 | the Service Use Tax Act if the purchaser provides the | ||||||
26 | appropriate documentation as required by Section 3-72 of the |
| |||||||
| |||||||
1 | Service Use Tax Act. A Sustainable Aviation Fuel Purchase | ||||||
2 | Credit certification accepted by a serviceman in accordance | ||||||
3 | with this paragraph may be used by that serviceman to satisfy | ||||||
4 | service occupation tax liability (but not in satisfaction of | ||||||
5 | penalty or interest) in the amount claimed in the | ||||||
6 | certification, not to exceed 6.25% of the receipts subject to | ||||||
7 | tax from a sale of aviation fuel. In addition, for a sale of | ||||||
8 | aviation fuel to qualify to earn the Sustainable Aviation Fuel | ||||||
9 | Purchase Credit, servicemen must retain in their books and | ||||||
10 | records a certification from the producer of the aviation fuel | ||||||
11 | that the aviation fuel sold by the serviceman and for which a | ||||||
12 | sustainable aviation fuel purchase credit was earned meets the | ||||||
13 | definition of sustainable aviation fuel under Section 3-72 of | ||||||
14 | the Service Use Tax Act. The documentation must include detail | ||||||
15 | sufficient for the Department to determine the number of | ||||||
16 | gallons of sustainable aviation fuel sold. | ||||||
17 | If the serviceman's average monthly tax liability to
the | ||||||
18 | Department does not exceed $200, the Department may authorize | ||||||
19 | his
returns to be filed on a quarter annual basis, with the | ||||||
20 | return for
January, February and March of a given year being | ||||||
21 | due by April 20 of
such year; with the return for April, May | ||||||
22 | and June of a given year being
due by July 20 of such year; | ||||||
23 | with the return for July, August and
September of a given year | ||||||
24 | being due by October 20 of such year, and with
the return for | ||||||
25 | October, November and December of a given year being due
by | ||||||
26 | January 20 of the following year. |
| |||||||
| |||||||
1 | If the serviceman's average monthly tax liability to
the | ||||||
2 | Department does not exceed $50, the Department may authorize | ||||||
3 | his
returns to be filed on an annual basis, with the return for | ||||||
4 | a given year
being due by January 20 of the following year. | ||||||
5 | Such quarter annual and annual returns, as to form and | ||||||
6 | substance,
shall be subject to the same requirements as | ||||||
7 | monthly returns. | ||||||
8 | Notwithstanding any other provision in this Act concerning | ||||||
9 | the time within
which a serviceman may file his return, in the | ||||||
10 | case of any serviceman who
ceases to engage in a kind of | ||||||
11 | business which makes him responsible for filing
returns under | ||||||
12 | this Act, such serviceman shall file a final return under this
| ||||||
13 | Act with the Department not more than 1 month after | ||||||
14 | discontinuing such
business. | ||||||
15 | Beginning October 1, 1993, a taxpayer who has an average | ||||||
16 | monthly tax
liability of $150,000 or more shall make all | ||||||
17 | payments required by rules of the
Department by electronic | ||||||
18 | funds transfer. Beginning October 1, 1994, a taxpayer
who has | ||||||
19 | an average monthly tax liability of $100,000 or more shall | ||||||
20 | make all
payments required by rules of the Department by | ||||||
21 | electronic funds transfer.
Beginning October 1, 1995, a | ||||||
22 | taxpayer who has an average monthly tax liability
of $50,000 | ||||||
23 | or more shall make all payments required by rules of the | ||||||
24 | Department
by electronic funds transfer. Beginning October 1, | ||||||
25 | 2000, a taxpayer who has
an annual tax liability of $200,000 or | ||||||
26 | more shall make all payments required by
rules of the |
| |||||||
| |||||||
1 | Department by electronic funds transfer. The term "annual tax
| ||||||
2 | liability" shall be the sum of the taxpayer's liabilities | ||||||
3 | under this Act, and
under all other State and local occupation | ||||||
4 | and use tax laws administered by the
Department, for the | ||||||
5 | immediately preceding calendar year. The term "average
monthly | ||||||
6 | tax liability" means
the sum of the taxpayer's liabilities | ||||||
7 | under this Act, and under all other State
and local occupation | ||||||
8 | and use tax laws administered by the Department, for the
| ||||||
9 | immediately preceding calendar year divided by 12.
Beginning | ||||||
10 | on October 1, 2002, a taxpayer who has a tax liability in the
| ||||||
11 | amount set forth in subsection (b) of Section 2505-210 of the | ||||||
12 | Department of
Revenue Law shall make all payments required by | ||||||
13 | rules of the Department by
electronic funds transfer. | ||||||
14 | Before August 1 of each year beginning in 1993, the | ||||||
15 | Department shall
notify all taxpayers required to make | ||||||
16 | payments by electronic funds transfer.
All taxpayers required | ||||||
17 | to make payments by electronic funds transfer shall make
those | ||||||
18 | payments for a minimum of one year beginning on October 1. | ||||||
19 | Any taxpayer not required to make payments by electronic | ||||||
20 | funds transfer may
make payments by electronic funds transfer | ||||||
21 | with the
permission of the Department. | ||||||
22 | All taxpayers required to make payment by electronic funds | ||||||
23 | transfer and
any taxpayers authorized to voluntarily make | ||||||
24 | payments by electronic funds
transfer shall make those | ||||||
25 | payments in the manner authorized by the Department. | ||||||
26 | The Department shall adopt such rules as are necessary to |
| |||||||
| |||||||
1 | effectuate a
program of electronic funds transfer and the | ||||||
2 | requirements of this Section. | ||||||
3 | Where a serviceman collects the tax with respect to the | ||||||
4 | selling price of
tangible personal property which he sells and | ||||||
5 | the purchaser thereafter returns
such tangible personal | ||||||
6 | property and the serviceman refunds the
selling price thereof | ||||||
7 | to the purchaser, such serviceman shall also refund,
to the | ||||||
8 | purchaser, the tax so collected from the purchaser. When
| ||||||
9 | filing his return for the period in which he refunds such tax | ||||||
10 | to the
purchaser, the serviceman may deduct the amount of the | ||||||
11 | tax so refunded by
him to the purchaser from any other Service | ||||||
12 | Occupation Tax, Service Use
Tax, Retailers' Occupation Tax or | ||||||
13 | Use Tax which such serviceman may be
required to pay or remit | ||||||
14 | to the Department, as shown by such return,
provided that the | ||||||
15 | amount of the tax to be deducted shall previously have
been | ||||||
16 | remitted to the Department by such serviceman. If the | ||||||
17 | serviceman shall
not previously have remitted the amount of | ||||||
18 | such tax to the Department,
he shall be entitled to no | ||||||
19 | deduction hereunder upon refunding such tax
to the purchaser. | ||||||
20 | If experience indicates such action to be practicable, the | ||||||
21 | Department
may prescribe and furnish a combination or joint | ||||||
22 | return which will
enable servicemen, who are required to file | ||||||
23 | returns
hereunder and also under the Retailers' Occupation Tax | ||||||
24 | Act, the Use
Tax Act or the Service Use Tax Act, to furnish all | ||||||
25 | the return
information required by all said Acts on the one | ||||||
26 | form. |
| |||||||
| |||||||
1 | Where the serviceman has more than one business
registered | ||||||
2 | with the Department under separate registrations hereunder,
| ||||||
3 | such serviceman shall file separate returns for each
| ||||||
4 | registered business. | ||||||
5 | Beginning January 1, 1990, each month the Department shall | ||||||
6 | pay into
the Local Government Tax Fund the revenue realized | ||||||
7 | for the
preceding month from the 1% tax imposed under this Act. | ||||||
8 | Beginning January 1, 1990, each month the Department shall | ||||||
9 | pay into
the County and Mass Transit District Fund 4% of the | ||||||
10 | revenue realized
for the preceding month from the 6.25% | ||||||
11 | general rate on sales of tangible personal property other than | ||||||
12 | aviation fuel sold on or after December 1, 2019. This | ||||||
13 | exception for aviation fuel only applies for so long as the | ||||||
14 | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | ||||||
15 | 47133 are binding on the State. | ||||||
16 | Beginning August 1, 2000, each
month the Department shall | ||||||
17 | pay into the
County and Mass Transit District Fund 20% of the | ||||||
18 | net revenue realized for the
preceding month from the 1.25% | ||||||
19 | rate on the selling price of motor fuel and
gasohol. | ||||||
20 | Beginning January 1, 1990, each month the Department shall | ||||||
21 | pay into
the Local Government Tax Fund 16% of the revenue | ||||||
22 | realized for the
preceding month from the 6.25% general rate | ||||||
23 | on transfers of
tangible personal property other than aviation | ||||||
24 | fuel sold on or after December 1, 2019. This exception for | ||||||
25 | aviation fuel only applies for so long as the revenue use | ||||||
26 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are |
| |||||||
| |||||||
1 | binding on the State. | ||||||
2 | For aviation fuel sold on or after December 1, 2019, each | ||||||
3 | month the Department shall pay into the State Aviation Program | ||||||
4 | Fund 20% of the net revenue realized for the preceding month | ||||||
5 | from the 6.25% general rate on the selling price of aviation | ||||||
6 | fuel, less an amount estimated by the Department to be | ||||||
7 | required for refunds of the 20% portion of the tax on aviation | ||||||
8 | fuel under this Act, which amount shall be deposited into the | ||||||
9 | Aviation Fuel Sales Tax Refund Fund. The Department shall only | ||||||
10 | pay moneys into the State Aviation Program Fund and the | ||||||
11 | Aviation Fuel Sales Tax Refund Fund under this Act for so long | ||||||
12 | as the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
13 | U.S.C. 47133 are binding on the State. | ||||||
14 | Beginning August 1, 2000, each
month the Department shall | ||||||
15 | pay into the
Local Government Tax Fund 80% of the net revenue | ||||||
16 | realized for the preceding
month from the 1.25% rate on the | ||||||
17 | selling price of motor fuel and gasohol. | ||||||
18 | Beginning October 1, 2009, each month the Department shall | ||||||
19 | pay into the Capital Projects Fund an amount that is equal to | ||||||
20 | an amount estimated by the Department to represent 80% of the | ||||||
21 | net revenue realized for the preceding month from the sale of | ||||||
22 | candy, grooming and hygiene products, and soft drinks that had | ||||||
23 | been taxed at a rate of 1% prior to September 1, 2009 but that | ||||||
24 | are now taxed at 6.25%. | ||||||
25 | Beginning July 1, 2013, each month the Department shall | ||||||
26 | pay into the Underground Storage Tank Fund from the proceeds |
| |||||||
| |||||||
1 | collected under this Act, the Use Tax Act, the Service Use Tax | ||||||
2 | Act, and the Retailers' Occupation Tax Act an amount equal to | ||||||
3 | the average monthly deficit in the Underground Storage Tank | ||||||
4 | Fund during the prior year, as certified annually by the | ||||||
5 | Illinois Environmental Protection Agency, but the total | ||||||
6 | payment into the Underground Storage Tank Fund under this Act, | ||||||
7 | the Use Tax Act, the Service Use Tax Act, and the Retailers' | ||||||
8 | Occupation Tax Act shall not exceed $18,000,000 in any State | ||||||
9 | fiscal year. As used in this paragraph, the "average monthly | ||||||
10 | deficit" shall be equal to the difference between the average | ||||||
11 | monthly claims for payment by the fund and the average monthly | ||||||
12 | revenues deposited into the fund, excluding payments made | ||||||
13 | pursuant to this paragraph. | ||||||
14 | Beginning July 1, 2015, of the remainder of the moneys | ||||||
15 | received by the Department under the Use Tax Act, the Service | ||||||
16 | Use Tax Act, this Act, and the Retailers' Occupation Tax Act, | ||||||
17 | each month the Department shall deposit $500,000 into the | ||||||
18 | State Crime Laboratory Fund. | ||||||
19 | Of the remainder of the moneys received by the Department | ||||||
20 | pursuant to
this Act, (a) 1.75% thereof shall be paid into the | ||||||
21 | Build Illinois Fund and
(b) prior to July 1, 1989, 2.2% and on | ||||||
22 | and after July 1, 1989, 3.8% thereof
shall be paid into the | ||||||
23 | Build Illinois Fund; provided, however, that if in
any fiscal | ||||||
24 | year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
| ||||||
25 | may be, of the moneys received by the Department and required | ||||||
26 | to be paid
into the Build Illinois Fund pursuant to Section 3 |
| |||||||
| |||||||
1 | of the Retailers'
Occupation Tax Act, Section 9 of the Use Tax | ||||||
2 | Act, Section 9 of the Service
Use Tax Act, and Section 9 of the | ||||||
3 | Service Occupation Tax Act, such Acts
being hereinafter called | ||||||
4 | the "Tax Acts" and such aggregate of 2.2% or 3.8%,
as the case | ||||||
5 | may be, of moneys being hereinafter called the "Tax Act
| ||||||
6 | Amount", and (2) the amount transferred to the Build Illinois | ||||||
7 | Fund from the
State and Local Sales Tax Reform Fund shall be | ||||||
8 | less than the Annual
Specified Amount (as defined in Section 3 | ||||||
9 | of the Retailers' Occupation Tax
Act), an amount equal to the | ||||||
10 | difference shall be immediately paid into the
Build Illinois | ||||||
11 | Fund from other moneys received by the Department pursuant
to | ||||||
12 | the Tax Acts; and further provided, that if on the last | ||||||
13 | business day of
any month the sum of (1) the Tax Act Amount | ||||||
14 | required to be deposited into
the Build Illinois Account in | ||||||
15 | the Build Illinois Fund during such month and
(2) the amount | ||||||
16 | transferred during such month to the Build Illinois Fund
from | ||||||
17 | the State and Local Sales Tax Reform Fund shall have been less | ||||||
18 | than
1/12 of the Annual Specified Amount, an amount equal to | ||||||
19 | the difference
shall be immediately paid into the Build | ||||||
20 | Illinois Fund from other moneys
received by the Department | ||||||
21 | pursuant to the Tax Acts; and, further provided,
that in no | ||||||
22 | event shall the payments required under the preceding proviso
| ||||||
23 | result in aggregate payments into the Build Illinois Fund | ||||||
24 | pursuant to this
clause (b) for any fiscal year in excess of | ||||||
25 | the greater of (i) the Tax Act
Amount or (ii) the Annual | ||||||
26 | Specified Amount for such fiscal year; and,
further provided, |
| |||||||
| |||||||
1 | that the amounts payable into the Build Illinois Fund
under | ||||||
2 | this clause (b) shall be payable only until such time as the
| ||||||
3 | aggregate amount on deposit under each trust indenture | ||||||
4 | securing Bonds
issued and outstanding pursuant to the Build | ||||||
5 | Illinois Bond Act is
sufficient, taking into account any | ||||||
6 | future investment income, to fully
provide, in accordance with | ||||||
7 | such indenture, for the defeasance of or the
payment of the | ||||||
8 | principal of, premium, if any, and interest on the Bonds
| ||||||
9 | secured by such indenture and on any Bonds expected to be | ||||||
10 | issued thereafter
and all fees and costs payable with respect | ||||||
11 | thereto, all as certified by
the Director of the
Bureau of the | ||||||
12 | Budget (now Governor's Office of Management and Budget). If
on | ||||||
13 | the last business day of
any month in which Bonds are | ||||||
14 | outstanding pursuant to the Build Illinois
Bond Act, the | ||||||
15 | aggregate of the moneys deposited
in the Build Illinois Bond | ||||||
16 | Account in the Build Illinois Fund in such month
shall be less | ||||||
17 | than the amount required to be transferred in such month from
| ||||||
18 | the Build Illinois Bond Account to the Build Illinois Bond | ||||||
19 | Retirement and
Interest Fund pursuant to Section 13 of the | ||||||
20 | Build Illinois Bond Act, an
amount equal to such deficiency | ||||||
21 | shall be immediately paid
from other moneys received by the | ||||||
22 | Department pursuant to the Tax Acts
to the Build Illinois | ||||||
23 | Fund; provided, however, that any amounts paid to the
Build | ||||||
24 | Illinois Fund in any fiscal year pursuant to this sentence | ||||||
25 | shall be
deemed to constitute payments pursuant to clause (b) | ||||||
26 | of the preceding
sentence and shall reduce the amount |
| |||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||
1 | otherwise payable for such fiscal year
pursuant to clause (b) | ||||||||||||||||||||||||||||||||||||
2 | of the preceding sentence. The moneys received by
the | ||||||||||||||||||||||||||||||||||||
3 | Department pursuant to this Act and required to be deposited | ||||||||||||||||||||||||||||||||||||
4 | into the
Build Illinois Fund are subject to the pledge, claim | ||||||||||||||||||||||||||||||||||||
5 | and charge set forth
in Section 12 of the Build Illinois Bond | ||||||||||||||||||||||||||||||||||||
6 | Act. | ||||||||||||||||||||||||||||||||||||
7 | Subject to payment of amounts into the Build Illinois Fund | ||||||||||||||||||||||||||||||||||||
8 | as provided in
the preceding paragraph or in any amendment | ||||||||||||||||||||||||||||||||||||
9 | thereto hereafter enacted, the
following specified monthly | ||||||||||||||||||||||||||||||||||||
10 | installment of the amount requested in the
certificate of the | ||||||||||||||||||||||||||||||||||||
11 | Chairman of the Metropolitan Pier and Exposition
Authority | ||||||||||||||||||||||||||||||||||||
12 | provided under Section 8.25f of the State Finance Act, but not | ||||||||||||||||||||||||||||||||||||
13 | in
excess of the sums designated as "Total Deposit", shall be | ||||||||||||||||||||||||||||||||||||
14 | deposited in the
aggregate from collections under Section 9 of | ||||||||||||||||||||||||||||||||||||
15 | the Use Tax Act, Section 9 of
the Service Use Tax Act, Section | ||||||||||||||||||||||||||||||||||||
16 | 9 of the Service Occupation Tax Act, and
Section 3 of the | ||||||||||||||||||||||||||||||||||||
17 | Retailers' Occupation Tax Act into the McCormick Place
| ||||||||||||||||||||||||||||||||||||
18 | Expansion Project Fund in the specified fiscal years. | ||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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21 | Beginning July 20, 1993 and in each month of each fiscal | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
22 | year thereafter,
one-eighth of the amount requested in the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
23 | certificate of the Chairman of
the Metropolitan Pier and | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
24 | Exposition Authority for that fiscal year, less
the amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
25 | deposited into the McCormick Place Expansion Project Fund by | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
26 | the
State Treasurer in the respective month under subsection |
| |||||||
| |||||||
1 | (g) of Section 13
of the Metropolitan Pier and Exposition | ||||||
2 | Authority Act, plus cumulative
deficiencies in the deposits | ||||||
3 | required under this Section for previous
months and years, | ||||||
4 | shall be deposited into the McCormick Place Expansion
Project | ||||||
5 | Fund, until the full amount requested for the fiscal year, but | ||||||
6 | not
in excess of the amount specified above as "Total | ||||||
7 | Deposit", has been deposited. | ||||||
8 | Subject to payment of amounts into the Capital Projects | ||||||
9 | Fund, the Build Illinois Fund, and the McCormick Place | ||||||
10 | Expansion Project Fund pursuant to the preceding paragraphs or | ||||||
11 | in any amendments thereto hereafter enacted, for aviation fuel | ||||||
12 | sold on or after December 1, 2019, the Department shall each | ||||||
13 | month deposit into the Aviation Fuel Sales Tax Refund Fund an | ||||||
14 | amount estimated by the Department to be required for refunds | ||||||
15 | of the 80% portion of the tax on aviation fuel under this Act. | ||||||
16 | The Department shall only deposit moneys into the Aviation | ||||||
17 | Fuel Sales Tax Refund Fund under this paragraph for so long as | ||||||
18 | the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
19 | U.S.C. 47133 are binding on the State. | ||||||
20 | Subject to payment of amounts into the Build Illinois Fund | ||||||
21 | and the
McCormick
Place Expansion Project Fund
pursuant to the | ||||||
22 | preceding paragraphs or in any amendments thereto hereafter
| ||||||
23 | enacted, beginning July 1, 1993 and ending on September 30, | ||||||
24 | 2013, the Department shall each month pay into the
Illinois | ||||||
25 | Tax Increment Fund 0.27% of 80% of the net revenue realized for | ||||||
26 | the
preceding month from the 6.25% general rate on the selling |
| |||||||
| |||||||
1 | price of tangible
personal property. | ||||||
2 | Subject to payment of amounts into the Build Illinois Fund | ||||||
3 | and the
McCormick Place Expansion Project Fund pursuant to the | ||||||
4 | preceding paragraphs or in any
amendments thereto hereafter | ||||||
5 | enacted, beginning with the receipt of the first
report of | ||||||
6 | taxes paid by an eligible business and continuing for a | ||||||
7 | 25-year
period, the Department shall each month pay into the | ||||||
8 | Energy Infrastructure
Fund 80% of the net revenue realized | ||||||
9 | from the 6.25% general rate on the
selling price of | ||||||
10 | Illinois-mined coal that was sold to an eligible business.
For | ||||||
11 | purposes of this paragraph, the term "eligible business" means | ||||||
12 | a new
electric generating facility certified pursuant to | ||||||
13 | Section 605-332 of the
Department of Commerce and
Economic | ||||||
14 | Opportunity Law of the Civil Administrative
Code of Illinois. | ||||||
15 | Subject to payment of amounts into the Build Illinois | ||||||
16 | Fund, the McCormick Place Expansion Project Fund, the Illinois | ||||||
17 | Tax Increment Fund, and the Energy Infrastructure Fund | ||||||
18 | pursuant to the preceding paragraphs or in any amendments to | ||||||
19 | this Section hereafter enacted, beginning on the first day of | ||||||
20 | the first calendar month to occur on or after August 26, 2014 | ||||||
21 | (the effective date of Public Act 98-1098), each month, from | ||||||
22 | the collections made under Section 9 of the Use Tax Act, | ||||||
23 | Section 9 of the Service Use Tax Act, Section 9 of the Service | ||||||
24 | Occupation Tax Act, and Section 3 of the Retailers' Occupation | ||||||
25 | Tax Act, the Department shall pay into the Tax Compliance and | ||||||
26 | Administration Fund, to be used, subject to appropriation, to |
| |||||||
| |||||||
1 | fund additional auditors and compliance personnel at the | ||||||
2 | Department of Revenue, an amount equal to 1/12 of 5% of 80% of | ||||||
3 | the cash receipts collected during the preceding fiscal year | ||||||
4 | by the Audit Bureau of the Department under the Use Tax Act, | ||||||
5 | the Service Use Tax Act, the Service Occupation Tax Act, the | ||||||
6 | Retailers' Occupation Tax Act, and associated local occupation | ||||||
7 | and use taxes administered by the Department. | ||||||
8 | Subject to payments of amounts into the Build Illinois | ||||||
9 | Fund, the McCormick Place Expansion Project Fund, the Illinois | ||||||
10 | Tax Increment Fund, the Energy Infrastructure Fund, and the | ||||||
11 | Tax Compliance and Administration Fund as provided in this | ||||||
12 | Section, beginning on July 1, 2018 the Department shall pay | ||||||
13 | each month into the Downstate Public Transportation Fund the | ||||||
14 | moneys required to be so paid under Section 2-3 of the | ||||||
15 | Downstate Public Transportation Act. | ||||||
16 | Subject to successful execution and delivery of a | ||||||
17 | public-private agreement between the public agency and private | ||||||
18 | entity and completion of the civic build, beginning on July 1, | ||||||
19 | 2023, of the remainder of the moneys received by the | ||||||
20 | Department under the Use Tax Act, the Service Use Tax Act, the | ||||||
21 | Service Occupation Tax Act, and this Act, the Department shall | ||||||
22 | deposit the following specified deposits in the aggregate from | ||||||
23 | collections under the Use Tax Act, the Service Use Tax Act, the | ||||||
24 | Service Occupation Tax Act, and the Retailers' Occupation Tax | ||||||
25 | Act, as required under Section 8.25g of the State Finance Act | ||||||
26 | for distribution consistent with the Public-Private |
| |||||||
| |||||||
1 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
2 | The moneys received by the Department pursuant to this Act and | ||||||
3 | required to be deposited into the Civic and Transit | ||||||
4 | Infrastructure Fund are subject to the pledge, claim and | ||||||
5 | charge set forth in Section 25-55 of the Public-Private | ||||||
6 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
7 | As used in this paragraph, "civic build", "private entity", | ||||||
8 | "public-private agreement", and "public agency" have the | ||||||
9 | meanings provided in Section 25-10 of the Public-Private | ||||||
10 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
11 | Fiscal Year ............................Total Deposit | ||||||
12 | 2024 ....................................$200,000,000 | ||||||
13 | 2025 ....................................$206,000,000 | ||||||
14 | 2026 ....................................$212,200,000 | ||||||
15 | 2027 ....................................$218,500,000 | ||||||
16 | 2028 ....................................$225,100,000 | ||||||
17 | 2029 ....................................$288,700,000 | ||||||
18 | 2030 ....................................$298,900,000 | ||||||
19 | 2031 ....................................$309,300,000 | ||||||
20 | 2032 ....................................$320,100,000 | ||||||
21 | 2033 ....................................$331,200,000 | ||||||
22 | 2034 ....................................$341,200,000 | ||||||
23 | 2035 ....................................$351,400,000 | ||||||
24 | 2036 ....................................$361,900,000 | ||||||
25 | 2037 ....................................$372,800,000 | ||||||
26 | 2038 ....................................$384,000,000 |
| |||||||
| |||||||
1 | 2039 ....................................$395,500,000 | ||||||
2 | 2040 ....................................$407,400,000 | ||||||
3 | 2041 ....................................$419,600,000 | ||||||
4 | 2042 ....................................$432,200,000 | ||||||
5 | 2043 ....................................$445,100,000 | ||||||
6 | Beginning July 1, 2021 and until July 1, 2022, subject to | ||||||
7 | the payment of amounts into the County and Mass Transit | ||||||
8 | District Fund, the Local Government Tax Fund, the Build | ||||||
9 | Illinois Fund, the McCormick Place Expansion Project Fund, the | ||||||
10 | Illinois Tax Increment Fund, the Energy Infrastructure Fund, | ||||||
11 | and the Tax Compliance and Administration Fund as provided in | ||||||
12 | this Section, the Department shall pay each month into the | ||||||
13 | Road Fund the amount estimated to represent 16% of the net | ||||||
14 | revenue realized from the taxes imposed on motor fuel and | ||||||
15 | gasohol. Beginning July 1, 2022 and until July 1, 2023, | ||||||
16 | subject to the payment of amounts into the County and Mass | ||||||
17 | Transit District Fund, the Local Government Tax Fund, the | ||||||
18 | Build Illinois Fund, the McCormick Place Expansion Project | ||||||
19 | Fund, the Illinois Tax Increment Fund, the Energy | ||||||
20 | Infrastructure Fund, and the Tax Compliance and Administration | ||||||
21 | Fund as provided in this Section, the Department shall pay | ||||||
22 | each month into the Road Fund the amount estimated to | ||||||
23 | represent 32% of the net revenue realized from the taxes | ||||||
24 | imposed on motor fuel and gasohol. Beginning July 1, 2023 and | ||||||
25 | until July 1, 2024, subject to the payment of amounts into the | ||||||
26 | County and Mass Transit District Fund, the Local Government |
| |||||||
| |||||||
1 | Tax Fund, the Build Illinois Fund, the McCormick Place | ||||||
2 | Expansion Project Fund, the Illinois Tax Increment Fund, the | ||||||
3 | Energy Infrastructure Fund, and the Tax Compliance and | ||||||
4 | Administration Fund as provided in this Section, the | ||||||
5 | Department shall pay each month into the Road Fund the amount | ||||||
6 | estimated to represent 48% of the net revenue realized from | ||||||
7 | the taxes imposed on motor fuel and gasohol. Beginning July 1, | ||||||
8 | 2024 and until July 1, 2025, subject to the payment of amounts | ||||||
9 | into the County and Mass Transit District Fund, the Local | ||||||
10 | Government Tax Fund, the Build Illinois Fund, the McCormick | ||||||
11 | Place Expansion Project Fund, the Illinois Tax Increment Fund, | ||||||
12 | the Energy Infrastructure Fund, and the Tax Compliance and | ||||||
13 | Administration Fund as provided in this Section, the | ||||||
14 | Department shall pay each month into the Road Fund the amount | ||||||
15 | estimated to represent 64% of the net revenue realized from | ||||||
16 | the taxes imposed on motor fuel and gasohol. Beginning on July | ||||||
17 | 1, 2025, subject to the payment of amounts into the County and | ||||||
18 | Mass Transit District Fund, the Local Government Tax Fund, the | ||||||
19 | Build Illinois Fund, the McCormick Place Expansion Project | ||||||
20 | Fund, the Illinois Tax Increment Fund, the Energy | ||||||
21 | Infrastructure Fund, and the Tax Compliance and Administration | ||||||
22 | Fund as provided in this Section, the Department shall pay | ||||||
23 | each month into the Road Fund the amount estimated to | ||||||
24 | represent 80% of the net revenue realized from the taxes | ||||||
25 | imposed on motor fuel and gasohol. As used in this paragraph | ||||||
26 | "motor fuel" has the meaning given to that term in Section 1.1 |
| |||||||
| |||||||
1 | of the Motor Fuel Tax Law, and "gasohol" has the meaning given | ||||||
2 | to that term in Section 3-40 of the Use Tax Act. | ||||||
3 | Of the remainder of the moneys received by the Department | ||||||
4 | pursuant to this
Act, 75% shall be paid into the General | ||||||
5 | Revenue Fund of the State Treasury and 25% shall be reserved in | ||||||
6 | a special account and used only for the transfer to the Common | ||||||
7 | School Fund as part of the monthly transfer from the General | ||||||
8 | Revenue Fund in accordance with Section 8a of the State | ||||||
9 | Finance Act. | ||||||
10 | The Department may, upon separate written notice to a | ||||||
11 | taxpayer,
require the taxpayer to prepare and file with the | ||||||
12 | Department on a form
prescribed by the Department within not | ||||||
13 | less than 60 days after receipt
of the notice an annual | ||||||
14 | information return for the tax year specified in
the notice. | ||||||
15 | Such annual return to the Department shall include a
statement | ||||||
16 | of gross receipts as shown by the taxpayer's last Federal | ||||||
17 | income
tax return. If the total receipts of the business as | ||||||
18 | reported in the
Federal income tax return do not agree with the | ||||||
19 | gross receipts reported to
the Department of Revenue for the | ||||||
20 | same period, the taxpayer shall attach
to his annual return a | ||||||
21 | schedule showing a reconciliation of the 2
amounts and the | ||||||
22 | reasons for the difference. The taxpayer's annual
return to | ||||||
23 | the Department shall also disclose the cost of goods sold by
| ||||||
24 | the taxpayer during the year covered by such return, opening | ||||||
25 | and closing
inventories of such goods for such year, cost of | ||||||
26 | goods used from stock
or taken from stock and given away by the |
| |||||||
| |||||||
1 | taxpayer during such year, pay
roll information of the | ||||||
2 | taxpayer's business during such year and any
additional | ||||||
3 | reasonable information which the Department deems would be
| ||||||
4 | helpful in determining the accuracy of the monthly, quarterly | ||||||
5 | or annual
returns filed by such taxpayer as hereinbefore | ||||||
6 | provided for in this
Section. | ||||||
7 | If the annual information return required by this Section | ||||||
8 | is not
filed when and as required, the taxpayer shall be liable | ||||||
9 | as follows: | ||||||
10 | (i) Until January 1, 1994, the taxpayer shall be | ||||||
11 | liable
for a penalty equal to 1/6 of 1% of the tax due from | ||||||
12 | such taxpayer
under this Act during the period to be | ||||||
13 | covered by the annual return
for each month or fraction of | ||||||
14 | a month until such return is filed as
required, the | ||||||
15 | penalty to be assessed and collected in the same manner
as | ||||||
16 | any other penalty provided for in this Act. | ||||||
17 | (ii) On and after January 1, 1994, the taxpayer shall | ||||||
18 | be liable for a
penalty as described in Section 3-4 of the | ||||||
19 | Uniform Penalty and Interest Act. | ||||||
20 | The chief executive officer, proprietor, owner or highest | ||||||
21 | ranking
manager shall sign the annual return to certify the | ||||||
22 | accuracy of the
information contained therein. Any person who | ||||||
23 | willfully signs the
annual return containing false or | ||||||
24 | inaccurate information shall be guilty
of perjury and punished | ||||||
25 | accordingly. The annual return form prescribed
by the | ||||||
26 | Department shall include a warning that the person signing the
|
| |||||||
| |||||||
1 | return may be liable for perjury. | ||||||
2 | The foregoing portion of this Section concerning the | ||||||
3 | filing of an
annual information return shall not apply to a | ||||||
4 | serviceman who is not
required to file an income tax return | ||||||
5 | with the United States Government. | ||||||
6 | As soon as possible after the first day of each month, upon | ||||||
7 | certification
of the Department of Revenue, the Comptroller | ||||||
8 | shall order transferred and
the Treasurer shall transfer from | ||||||
9 | the General Revenue Fund to the Motor
Fuel Tax Fund an amount | ||||||
10 | equal to 1.7% of 80% of the net revenue realized
under this Act | ||||||
11 | for the second preceding month.
Beginning April 1, 2000, this | ||||||
12 | transfer is no longer required
and shall not be made. | ||||||
13 | Net revenue realized for a month shall be the revenue | ||||||
14 | collected by the State
pursuant to this Act, less the amount | ||||||
15 | paid out during that month as
refunds to taxpayers for | ||||||
16 | overpayment of liability. | ||||||
17 | For greater simplicity of administration, it shall be | ||||||
18 | permissible for
manufacturers, importers and wholesalers whose | ||||||
19 | products are sold by numerous
servicemen in Illinois, and who | ||||||
20 | wish to do so, to
assume the responsibility for accounting and | ||||||
21 | paying to the Department
all tax accruing under this Act with | ||||||
22 | respect to such sales, if the
servicemen who are affected do | ||||||
23 | not make written objection to the
Department to this | ||||||
24 | arrangement. | ||||||
25 | (Source: P.A. 101-10, Article 15, Section 15-20, eff. 6-5-19; | ||||||
26 | 101-10, Article 25, Section 25-115, eff. 6-5-19; 101-27, eff. |
| |||||||
| |||||||
1 | 6-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19; | ||||||
2 | 101-636, eff. 6-10-20; 102-700, eff. 4-19-22.) | ||||||
3 | Section 70-20. The Retailers' Occupation Tax Act is | ||||||
4 | amended by changing Section 3 as follows:
| ||||||
5 | (35 ILCS 120/3) (from Ch. 120, par. 442)
| ||||||
6 | Sec. 3. Except as provided in this Section, on or before | ||||||
7 | the twentieth
day of each calendar month, every person engaged | ||||||
8 | in the business of
selling tangible personal property at | ||||||
9 | retail in this State during the
preceding calendar month shall | ||||||
10 | file a return with the Department, stating: | ||||||
11 | 1. The name of the seller; | ||||||
12 | 2. His residence address and the address of his | ||||||
13 | principal place of
business and the address of the | ||||||
14 | principal place of business (if that is
a different | ||||||
15 | address) from which he engages in the business of selling
| ||||||
16 | tangible personal property at retail in this State; | ||||||
17 | 3. Total amount of receipts received by him during the | ||||||
18 | preceding
calendar month or quarter, as the case may be, | ||||||
19 | from sales of tangible
personal property, and from | ||||||
20 | services furnished, by him during such
preceding calendar | ||||||
21 | month or quarter; | ||||||
22 | 4. Total amount received by him during the preceding | ||||||
23 | calendar month or
quarter on charge and time sales of | ||||||
24 | tangible personal property, and from
services furnished, |
| |||||||
| |||||||
1 | by him prior to the month or quarter for which the return
| ||||||
2 | is filed; | ||||||
3 | 5. Deductions allowed by law; | ||||||
4 | 6. Gross receipts which were received by him during | ||||||
5 | the preceding
calendar month or quarter and upon the basis | ||||||
6 | of which the tax is imposed, including gross receipts on | ||||||
7 | food for human consumption that is to be consumed off the | ||||||
8 | premises where it is sold (other than alcoholic beverages, | ||||||
9 | food consisting of or infused with adult use cannabis, | ||||||
10 | soft drinks, and food that has been prepared for immediate | ||||||
11 | consumption) which were received during the preceding | ||||||
12 | calendar month or quarter and upon which tax would have | ||||||
13 | been due but for the 0% rate imposed under Public Act | ||||||
14 | 102-700 this amendatory Act of the 102nd General Assembly ; | ||||||
15 | 7. The amount of credit provided in Section 2d of this | ||||||
16 | Act; | ||||||
17 | 8. The amount of tax due, including the amount of tax | ||||||
18 | that would have been due on food for human consumption | ||||||
19 | that is to be consumed off the premises where it is sold | ||||||
20 | (other than alcoholic beverages, food consisting of or | ||||||
21 | infused with adult use cannabis, soft drinks, and food | ||||||
22 | that has been prepared for immediate consumption) but for | ||||||
23 | the 0% rate imposed under Public Act 102-700 this | ||||||
24 | amendatory Act of the 102nd General Assembly ; | ||||||
25 | 9. The signature of the taxpayer; and | ||||||
26 | 10. Such other reasonable information as the |
| |||||||
| |||||||
1 | Department may require. | ||||||
2 | On and after January 1, 2018, except for returns required | ||||||
3 | to be filed prior to January 1, 2023 for motor vehicles, | ||||||
4 | watercraft, aircraft, and trailers that are required to be | ||||||
5 | registered with an agency of this State, with respect to | ||||||
6 | retailers whose annual gross receipts average $20,000 or more, | ||||||
7 | all returns required to be filed pursuant to this Act shall be | ||||||
8 | filed electronically. On and after January 1, 2023, with | ||||||
9 | respect to retailers whose annual gross receipts average | ||||||
10 | $20,000 or more, all returns required to be filed pursuant to | ||||||
11 | this Act, including, but not limited to, returns for motor | ||||||
12 | vehicles, watercraft, aircraft, and trailers that are required | ||||||
13 | to be registered with an agency of this State, shall be filed | ||||||
14 | electronically. Retailers who demonstrate that they do not | ||||||
15 | have access to the Internet or demonstrate hardship in filing | ||||||
16 | electronically may petition the Department to waive the | ||||||
17 | electronic filing requirement. | ||||||
18 | If a taxpayer fails to sign a return within 30 days after | ||||||
19 | the proper notice
and demand for signature by the Department, | ||||||
20 | the return shall be considered
valid and any amount shown to be | ||||||
21 | due on the return shall be deemed assessed. | ||||||
22 | Each return shall be accompanied by the statement of | ||||||
23 | prepaid tax issued
pursuant to Section 2e for which credit is | ||||||
24 | claimed. | ||||||
25 | Prior to October 1, 2003, and on and after September 1, | ||||||
26 | 2004 a retailer may accept a Manufacturer's Purchase
Credit
|
| |||||||
| |||||||
1 | certification from a purchaser in satisfaction of Use Tax
as | ||||||
2 | provided in Section 3-85 of the Use Tax Act if the purchaser | ||||||
3 | provides the
appropriate documentation as required by Section | ||||||
4 | 3-85
of the Use Tax Act. A Manufacturer's Purchase Credit
| ||||||
5 | certification, accepted by a retailer prior to October 1, 2003 | ||||||
6 | and on and after September 1, 2004 as provided
in
Section 3-85 | ||||||
7 | of the Use Tax Act, may be used by that retailer to
satisfy | ||||||
8 | Retailers' Occupation Tax liability in the amount claimed in
| ||||||
9 | the certification, not to exceed 6.25% of the receipts
subject | ||||||
10 | to tax from a qualifying purchase. A Manufacturer's Purchase | ||||||
11 | Credit
reported on any original or amended return
filed under
| ||||||
12 | this Act after October 20, 2003 for reporting periods prior to | ||||||
13 | September 1, 2004 shall be disallowed. Manufacturer's Purchase | ||||||
14 | Credit reported on annual returns due on or after January 1, | ||||||
15 | 2005 will be disallowed for periods prior to September 1, | ||||||
16 | 2004. No Manufacturer's
Purchase Credit may be used after | ||||||
17 | September 30, 2003 through August 31, 2004 to
satisfy any
tax | ||||||
18 | liability imposed under this Act, including any audit | ||||||
19 | liability. | ||||||
20 | Beginning on July 1, 2023 and through December 31, 2032, a | ||||||
21 | retailer may accept a Sustainable Aviation Fuel Purchase | ||||||
22 | Credit certification from an air common carrier-purchaser in | ||||||
23 | satisfaction of Use Tax on aviation fuel as provided in | ||||||
24 | Section 3-87 of the Use Tax Act if the purchaser provides the | ||||||
25 | appropriate documentation as required by Section 3-87 of the | ||||||
26 | Use Tax Act. A Sustainable Aviation Fuel Purchase Credit |
| |||||||
| |||||||
1 | certification accepted by a retailer in accordance with this | ||||||
2 | paragraph may be used by that retailer to satisfy Retailers' | ||||||
3 | Occupation Tax liability (but not in satisfaction of penalty | ||||||
4 | or interest) in the amount claimed in the certification, not | ||||||
5 | to exceed 6.25% of the receipts subject to tax from a sale of | ||||||
6 | aviation fuel. In addition, for a sale of aviation fuel to | ||||||
7 | qualify to earn the Sustainable Aviation Fuel Purchase Credit, | ||||||
8 | retailers must retain in their books and records a | ||||||
9 | certification from the producer of the aviation fuel that the | ||||||
10 | aviation fuel sold by the retailer and for which a sustainable | ||||||
11 | aviation fuel purchase credit was earned meets the definition | ||||||
12 | of sustainable aviation fuel under Section 3-87 of the Use Tax | ||||||
13 | Act. The documentation must include detail sufficient for the | ||||||
14 | Department to determine the number of gallons of sustainable | ||||||
15 | aviation fuel sold. | ||||||
16 | The Department may require returns to be filed on a | ||||||
17 | quarterly basis.
If so required, a return for each calendar | ||||||
18 | quarter shall be filed on or
before the twentieth day of the | ||||||
19 | calendar month following the end of such
calendar quarter. The | ||||||
20 | taxpayer shall also file a return with the
Department for each | ||||||
21 | of the first two months of each calendar quarter, on or
before | ||||||
22 | the twentieth day of the following calendar month, stating: | ||||||
23 | 1. The name of the seller; | ||||||
24 | 2. The address of the principal place of business from | ||||||
25 | which he engages
in the business of selling tangible | ||||||
26 | personal property at retail in this State; |
| |||||||
| |||||||
1 | 3. The total amount of taxable receipts received by | ||||||
2 | him during the
preceding calendar month from sales of | ||||||
3 | tangible personal property by him
during such preceding | ||||||
4 | calendar month, including receipts from charge and
time | ||||||
5 | sales, but less all deductions allowed by law; | ||||||
6 | 4. The amount of credit provided in Section 2d of this | ||||||
7 | Act; | ||||||
8 | 5. The amount of tax due; and | ||||||
9 | 6. Such other reasonable information as the Department | ||||||
10 | may
require. | ||||||
11 | Every person engaged in the business of selling aviation | ||||||
12 | fuel at retail in this State during the preceding calendar | ||||||
13 | month shall, instead of reporting and paying tax as otherwise | ||||||
14 | required by this Section, report and pay such tax on a separate | ||||||
15 | aviation fuel tax return. The requirements related to the | ||||||
16 | return shall be as otherwise provided in this Section. | ||||||
17 | Notwithstanding any other provisions of this Act to the | ||||||
18 | contrary, retailers selling aviation fuel shall file all | ||||||
19 | aviation fuel tax returns and shall make all aviation fuel tax | ||||||
20 | payments by electronic means in the manner and form required | ||||||
21 | by the Department. For purposes of this Section, "aviation | ||||||
22 | fuel" means jet fuel and aviation gasoline. | ||||||
23 | Beginning on October 1, 2003, any person who is not a | ||||||
24 | licensed
distributor, importing distributor, or manufacturer, | ||||||
25 | as defined in the Liquor
Control Act of 1934, but is engaged in | ||||||
26 | the business of
selling, at retail, alcoholic liquor
shall |
| |||||||
| |||||||
1 | file a statement with the Department of Revenue, in a format
| ||||||
2 | and at a time prescribed by the Department, showing the total | ||||||
3 | amount paid for
alcoholic liquor purchased during the | ||||||
4 | preceding month and such other
information as is reasonably | ||||||
5 | required by the Department.
The Department may adopt rules to | ||||||
6 | require
that this statement be filed in an electronic or | ||||||
7 | telephonic format. Such rules
may provide for exceptions from | ||||||
8 | the filing requirements of this paragraph. For
the
purposes of | ||||||
9 | this
paragraph, the term "alcoholic liquor" shall have the | ||||||
10 | meaning prescribed in the
Liquor Control Act of 1934. | ||||||
11 | Beginning on October 1, 2003, every distributor, importing | ||||||
12 | distributor, and
manufacturer of alcoholic liquor as defined | ||||||
13 | in the Liquor Control Act of 1934,
shall file a
statement with | ||||||
14 | the Department of Revenue, no later than the 10th day of the
| ||||||
15 | month for the
preceding month during which transactions | ||||||
16 | occurred, by electronic means,
showing the
total amount of | ||||||
17 | gross receipts from the sale of alcoholic liquor sold or
| ||||||
18 | distributed during
the preceding month to purchasers; | ||||||
19 | identifying the purchaser to whom it was
sold or
distributed; | ||||||
20 | the purchaser's tax registration number; and such other
| ||||||
21 | information
reasonably required by the Department. A | ||||||
22 | distributor, importing distributor, or manufacturer of | ||||||
23 | alcoholic liquor must personally deliver, mail, or provide by | ||||||
24 | electronic means to each retailer listed on the monthly | ||||||
25 | statement a report containing a cumulative total of that | ||||||
26 | distributor's, importing distributor's, or manufacturer's |
| |||||||
| |||||||
1 | total sales of alcoholic liquor to that retailer no later than | ||||||
2 | the 10th day of the month for the preceding month during which | ||||||
3 | the transaction occurred. The distributor, importing | ||||||
4 | distributor, or manufacturer shall notify the retailer as to | ||||||
5 | the method by which the distributor, importing distributor, or | ||||||
6 | manufacturer will provide the sales information. If the | ||||||
7 | retailer is unable to receive the sales information by | ||||||
8 | electronic means, the distributor, importing distributor, or | ||||||
9 | manufacturer shall furnish the sales information by personal | ||||||
10 | delivery or by mail. For purposes of this paragraph, the term | ||||||
11 | "electronic means" includes, but is not limited to, the use of | ||||||
12 | a secure Internet website, e-mail, or facsimile. | ||||||
13 | If a total amount of less than $1 is payable, refundable or | ||||||
14 | creditable,
such amount shall be disregarded if it is less | ||||||
15 | than 50 cents and shall be
increased to $1 if it is 50 cents or | ||||||
16 | more. | ||||||
17 | Notwithstanding any other provision of this Act to the | ||||||
18 | contrary, retailers subject to tax on cannabis shall file all | ||||||
19 | cannabis tax returns and shall make all cannabis tax payments | ||||||
20 | by electronic means in the manner and form required by the | ||||||
21 | Department. | ||||||
22 | Beginning October 1, 1993,
a taxpayer who has an average | ||||||
23 | monthly tax liability of $150,000 or more shall
make all | ||||||
24 | payments required by rules of the
Department by electronic | ||||||
25 | funds transfer. Beginning October 1, 1994, a taxpayer
who has | ||||||
26 | an average monthly tax liability of $100,000 or more shall |
| |||||||
| |||||||
1 | make all
payments required by rules of the Department by | ||||||
2 | electronic funds transfer.
Beginning October 1, 1995, a | ||||||
3 | taxpayer who has an average monthly tax liability
of $50,000 | ||||||
4 | or more shall make all
payments required by rules of the | ||||||
5 | Department by electronic funds transfer.
Beginning October 1, | ||||||
6 | 2000, a taxpayer who has an annual tax liability of
$200,000 or | ||||||
7 | more shall make all payments required by rules of the | ||||||
8 | Department by
electronic funds transfer. The term "annual tax | ||||||
9 | liability" shall be the sum of
the taxpayer's liabilities | ||||||
10 | under this Act, and under all other State and local
occupation | ||||||
11 | and use tax laws administered by the Department, for the | ||||||
12 | immediately
preceding calendar year.
The term "average monthly | ||||||
13 | tax liability" shall be the sum of the
taxpayer's liabilities | ||||||
14 | under this
Act, and under all other State and local occupation | ||||||
15 | and use tax
laws administered by the Department, for the | ||||||
16 | immediately preceding calendar
year divided by 12.
Beginning | ||||||
17 | on October 1, 2002, a taxpayer who has a tax liability in the
| ||||||
18 | amount set forth in subsection (b) of Section 2505-210 of the | ||||||
19 | Department of
Revenue Law shall make all payments required by | ||||||
20 | rules of the Department by
electronic funds transfer. | ||||||
21 | Before August 1 of each year beginning in 1993, the | ||||||
22 | Department shall
notify all taxpayers required to make | ||||||
23 | payments by electronic funds
transfer. All taxpayers
required | ||||||
24 | to make payments by electronic funds transfer shall make those
| ||||||
25 | payments for
a minimum of one year beginning on October 1. | ||||||
26 | Any taxpayer not required to make payments by electronic |
| |||||||
| |||||||
1 | funds transfer may
make payments by electronic funds transfer | ||||||
2 | with
the permission of the Department. | ||||||
3 | All taxpayers required to make payment by electronic funds | ||||||
4 | transfer and
any taxpayers authorized to voluntarily make | ||||||
5 | payments by electronic funds
transfer shall make those | ||||||
6 | payments in the manner authorized by the Department. | ||||||
7 | The Department shall adopt such rules as are necessary to | ||||||
8 | effectuate a
program of electronic funds transfer and the | ||||||
9 | requirements of this Section. | ||||||
10 | Any amount which is required to be shown or reported on any | ||||||
11 | return or
other document under this Act shall, if such amount | ||||||
12 | is not a whole-dollar
amount, be increased to the nearest | ||||||
13 | whole-dollar amount in any case where
the fractional part of a | ||||||
14 | dollar is 50 cents or more, and decreased to the
nearest | ||||||
15 | whole-dollar amount where the fractional part of a dollar is | ||||||
16 | less
than 50 cents. | ||||||
17 | If the retailer is otherwise required to file a monthly | ||||||
18 | return and if the
retailer's average monthly tax liability to | ||||||
19 | the Department does not exceed
$200, the Department may | ||||||
20 | authorize his returns to be filed on a quarter
annual basis, | ||||||
21 | with the return for January, February and March of a given
year | ||||||
22 | being due by April 20 of such year; with the return for April, | ||||||
23 | May and
June of a given year being due by July 20 of such year; | ||||||
24 | with the return for
July, August and September of a given year | ||||||
25 | being due by October 20 of such
year, and with the return for | ||||||
26 | October, November and December of a given
year being due by |
| |||||||
| |||||||
1 | January 20 of the following year. | ||||||
2 | If the retailer is otherwise required to file a monthly or | ||||||
3 | quarterly
return and if the retailer's average monthly tax | ||||||
4 | liability with the
Department does not exceed $50, the | ||||||
5 | Department may authorize his returns to
be filed on an annual | ||||||
6 | basis, with the return for a given year being due by
January 20 | ||||||
7 | of the following year. | ||||||
8 | Such quarter annual and annual returns, as to form and | ||||||
9 | substance,
shall be subject to the same requirements as | ||||||
10 | monthly returns. | ||||||
11 | Notwithstanding any other provision in this Act concerning | ||||||
12 | the time
within which a retailer may file his return, in the | ||||||
13 | case of any retailer
who ceases to engage in a kind of business | ||||||
14 | which makes him responsible
for filing returns under this Act, | ||||||
15 | such retailer shall file a final
return under this Act with the | ||||||
16 | Department not more than one month after
discontinuing such | ||||||
17 | business. | ||||||
18 | Where the same person has more than one business | ||||||
19 | registered with the
Department under separate registrations | ||||||
20 | under this Act, such person may
not file each return that is | ||||||
21 | due as a single return covering all such
registered | ||||||
22 | businesses, but shall file separate returns for each such
| ||||||
23 | registered business. | ||||||
24 | In addition, with respect to motor vehicles, watercraft,
| ||||||
25 | aircraft, and trailers that are required to be registered with | ||||||
26 | an agency of
this State, except as otherwise provided in this |
| |||||||
| |||||||
1 | Section, every
retailer selling this kind of tangible personal | ||||||
2 | property shall file,
with the Department, upon a form to be | ||||||
3 | prescribed and supplied by the
Department, a separate return | ||||||
4 | for each such item of tangible personal
property which the | ||||||
5 | retailer sells, except that if, in the same
transaction, (i) a | ||||||
6 | retailer of aircraft, watercraft, motor vehicles or
trailers | ||||||
7 | transfers more than one aircraft, watercraft, motor
vehicle or | ||||||
8 | trailer to another aircraft, watercraft, motor vehicle
| ||||||
9 | retailer or trailer retailer for the purpose of resale
or (ii) | ||||||
10 | a retailer of aircraft, watercraft, motor vehicles, or | ||||||
11 | trailers
transfers more than one aircraft, watercraft, motor | ||||||
12 | vehicle, or trailer to a
purchaser for use as a qualifying | ||||||
13 | rolling stock as provided in Section 2-5 of
this Act, then
that | ||||||
14 | seller may report the transfer of all aircraft,
watercraft, | ||||||
15 | motor vehicles or trailers involved in that transaction to the
| ||||||
16 | Department on the same uniform invoice-transaction reporting | ||||||
17 | return form. For
purposes of this Section, "watercraft" means | ||||||
18 | a Class 2, Class 3, or Class 4
watercraft as defined in Section | ||||||
19 | 3-2 of the Boat Registration and Safety Act, a
personal | ||||||
20 | watercraft, or any boat equipped with an inboard motor. | ||||||
21 | In addition, with respect to motor vehicles, watercraft, | ||||||
22 | aircraft, and trailers that are required to be registered with | ||||||
23 | an agency of this State, every person who is engaged in the | ||||||
24 | business of leasing or renting such items and who, in | ||||||
25 | connection with such business, sells any such item to a | ||||||
26 | retailer for the purpose of resale is, notwithstanding any |
| |||||||
| |||||||
1 | other provision of this Section to the contrary, authorized to | ||||||
2 | meet the return-filing requirement of this Act by reporting | ||||||
3 | the transfer of all the aircraft, watercraft, motor vehicles, | ||||||
4 | or trailers transferred for resale during a month to the | ||||||
5 | Department on the same uniform invoice-transaction reporting | ||||||
6 | return form on or before the 20th of the month following the | ||||||
7 | month in which the transfer takes place. Notwithstanding any | ||||||
8 | other provision of this Act to the contrary, all returns filed | ||||||
9 | under this paragraph must be filed by electronic means in the | ||||||
10 | manner and form as required by the Department. | ||||||
11 | Any retailer who sells only motor vehicles, watercraft,
| ||||||
12 | aircraft, or trailers that are required to be registered with | ||||||
13 | an agency of
this State, so that all
retailers' occupation tax | ||||||
14 | liability is required to be reported, and is
reported, on such | ||||||
15 | transaction reporting returns and who is not otherwise
| ||||||
16 | required to file monthly or quarterly returns, need not file | ||||||
17 | monthly or
quarterly returns. However, those retailers shall | ||||||
18 | be required to
file returns on an annual basis. | ||||||
19 | The transaction reporting return, in the case of motor | ||||||
20 | vehicles
or trailers that are required to be registered with | ||||||
21 | an agency of this
State, shall
be the same document as the | ||||||
22 | Uniform Invoice referred to in Section 5-402
of the Illinois | ||||||
23 | Vehicle Code and must show the name and address of the
seller; | ||||||
24 | the name and address of the purchaser; the amount of the | ||||||
25 | selling
price including the amount allowed by the retailer for | ||||||
26 | traded-in
property, if any; the amount allowed by the retailer |
| |||||||
| |||||||
1 | for the traded-in
tangible personal property, if any, to the | ||||||
2 | extent to which Section 1 of
this Act allows an exemption for | ||||||
3 | the value of traded-in property; the
balance payable after | ||||||
4 | deducting such trade-in allowance from the total
selling | ||||||
5 | price; the amount of tax due from the retailer with respect to
| ||||||
6 | such transaction; the amount of tax collected from the | ||||||
7 | purchaser by the
retailer on such transaction (or satisfactory | ||||||
8 | evidence that such tax is
not due in that particular instance, | ||||||
9 | if that is claimed to be the fact);
the place and date of the | ||||||
10 | sale; a sufficient identification of the
property sold; such | ||||||
11 | other information as is required in Section 5-402 of
the | ||||||
12 | Illinois Vehicle Code, and such other information as the | ||||||
13 | Department
may reasonably require. | ||||||
14 | The transaction reporting return in the case of watercraft
| ||||||
15 | or aircraft must show
the name and address of the seller; the | ||||||
16 | name and address of the
purchaser; the amount of the selling | ||||||
17 | price including the amount allowed
by the retailer for | ||||||
18 | traded-in property, if any; the amount allowed by
the retailer | ||||||
19 | for the traded-in tangible personal property, if any, to
the | ||||||
20 | extent to which Section 1 of this Act allows an exemption for | ||||||
21 | the
value of traded-in property; the balance payable after | ||||||
22 | deducting such
trade-in allowance from the total selling | ||||||
23 | price; the amount of tax due
from the retailer with respect to | ||||||
24 | such transaction; the amount of tax
collected from the | ||||||
25 | purchaser by the retailer on such transaction (or
satisfactory | ||||||
26 | evidence that such tax is not due in that particular
instance, |
| |||||||
| |||||||
1 | if that is claimed to be the fact); the place and date of the
| ||||||
2 | sale, a sufficient identification of the property sold, and | ||||||
3 | such other
information as the Department may reasonably | ||||||
4 | require. | ||||||
5 | Such transaction reporting return shall be filed not later | ||||||
6 | than 20
days after the day of delivery of the item that is | ||||||
7 | being sold, but may
be filed by the retailer at any time sooner | ||||||
8 | than that if he chooses to
do so. The transaction reporting | ||||||
9 | return and tax remittance or proof of
exemption from the | ||||||
10 | Illinois use tax may be transmitted to the Department
by way of | ||||||
11 | the State agency with which, or State officer with whom the
| ||||||
12 | tangible personal property must be titled or registered (if | ||||||
13 | titling or
registration is required) if the Department and | ||||||
14 | such agency or State
officer determine that this procedure | ||||||
15 | will expedite the processing of
applications for title or | ||||||
16 | registration. | ||||||
17 | With each such transaction reporting return, the retailer | ||||||
18 | shall remit
the proper amount of tax due (or shall submit | ||||||
19 | satisfactory evidence that
the sale is not taxable if that is | ||||||
20 | the case), to the Department or its
agents, whereupon the | ||||||
21 | Department shall issue, in the purchaser's name, a
use tax | ||||||
22 | receipt (or a certificate of exemption if the Department is
| ||||||
23 | satisfied that the particular sale is tax exempt) which such | ||||||
24 | purchaser
may submit to the agency with which, or State | ||||||
25 | officer with whom, he must
title or register the tangible | ||||||
26 | personal property that is involved (if
titling or registration |
| |||||||
| |||||||
1 | is required) in support of such purchaser's
application for an | ||||||
2 | Illinois certificate or other evidence of title or
| ||||||
3 | registration to such tangible personal property. | ||||||
4 | No retailer's failure or refusal to remit tax under this | ||||||
5 | Act
precludes a user, who has paid the proper tax to the | ||||||
6 | retailer, from
obtaining his certificate of title or other | ||||||
7 | evidence of title or
registration (if titling or registration | ||||||
8 | is required) upon satisfying
the Department that such user has | ||||||
9 | paid the proper tax (if tax is due) to
the retailer. The | ||||||
10 | Department shall adopt appropriate rules to carry out
the | ||||||
11 | mandate of this paragraph. | ||||||
12 | If the user who would otherwise pay tax to the retailer | ||||||
13 | wants the
transaction reporting return filed and the payment | ||||||
14 | of the tax or proof
of exemption made to the Department before | ||||||
15 | the retailer is willing to
take these actions and such user has | ||||||
16 | not paid the tax to the retailer,
such user may certify to the | ||||||
17 | fact of such delay by the retailer and may
(upon the Department | ||||||
18 | being satisfied of the truth of such certification)
transmit | ||||||
19 | the information required by the transaction reporting return
| ||||||
20 | and the remittance for tax or proof of exemption directly to | ||||||
21 | the
Department and obtain his tax receipt or exemption | ||||||
22 | determination, in
which event the transaction reporting return | ||||||
23 | and tax remittance (if a
tax payment was required) shall be | ||||||
24 | credited by the Department to the
proper retailer's account | ||||||
25 | with the Department, but without the 2.1% or 1.75%
discount | ||||||
26 | provided for in this Section being allowed. When the user pays
|
| |||||||
| |||||||
1 | the tax directly to the Department, he shall pay the tax in the | ||||||
2 | same
amount and in the same form in which it would be remitted | ||||||
3 | if the tax had
been remitted to the Department by the retailer. | ||||||
4 | Refunds made by the seller during the preceding return | ||||||
5 | period to
purchasers, on account of tangible personal property | ||||||
6 | returned to the
seller, shall be allowed as a deduction under | ||||||
7 | subdivision 5 of his monthly
or quarterly return, as the case | ||||||
8 | may be, in case the
seller had theretofore included the | ||||||
9 | receipts from the sale of such
tangible personal property in a | ||||||
10 | return filed by him and had paid the tax
imposed by this Act | ||||||
11 | with respect to such receipts. | ||||||
12 | Where the seller is a corporation, the return filed on | ||||||
13 | behalf of such
corporation shall be signed by the president, | ||||||
14 | vice-president, secretary
or treasurer or by the properly | ||||||
15 | accredited agent of such corporation. | ||||||
16 | Where the seller is a limited liability company, the | ||||||
17 | return filed on behalf
of the limited liability company shall | ||||||
18 | be signed by a manager, member, or
properly accredited agent | ||||||
19 | of the limited liability company. | ||||||
20 | Except as provided in this Section, the retailer filing | ||||||
21 | the return
under this Section shall, at the time of filing such | ||||||
22 | return, pay to the
Department the amount of tax imposed by this | ||||||
23 | Act less a discount of 2.1%
prior to January 1, 1990 and 1.75% | ||||||
24 | on and after January 1, 1990, or $5 per
calendar year, | ||||||
25 | whichever is greater, which is allowed to
reimburse the | ||||||
26 | retailer for the expenses incurred in keeping records,
|
| |||||||
| |||||||
1 | preparing and filing returns, remitting the tax and supplying | ||||||
2 | data to
the Department on request. On and after January 1, | ||||||
3 | 2021, a certified service provider, as defined in the Leveling | ||||||
4 | the Playing Field for Illinois Retail Act, filing the return | ||||||
5 | under this Section on behalf of a remote retailer shall, at the | ||||||
6 | time of such return, pay to the Department the amount of tax | ||||||
7 | imposed by this Act less a discount of 1.75%. A remote retailer | ||||||
8 | using a certified service provider to file a return on its | ||||||
9 | behalf, as provided in the Leveling the Playing Field for | ||||||
10 | Illinois Retail Act, is not eligible for the discount. When | ||||||
11 | determining the discount allowed under this Section, retailers | ||||||
12 | shall include the amount of tax that would have been due at the | ||||||
13 | 1% rate but for the 0% rate imposed under Public Act 102-700 | ||||||
14 | this amendatory Act of the 102nd General Assembly . When | ||||||
15 | determining the discount allowed under this Section, retailers | ||||||
16 | shall include the amount of tax that would have been due at the | ||||||
17 | 6.25% rate but for the 1.25% rate imposed on sales tax holiday | ||||||
18 | items under Public Act 102-700 this amendatory Act of the | ||||||
19 | 102nd General Assembly . The discount under this Section is not | ||||||
20 | allowed for the 1.25% portion of taxes paid on aviation fuel | ||||||
21 | that is subject to the revenue use requirements of 49 U.S.C. | ||||||
22 | 47107(b) and 49 U.S.C. 47133. Any prepayment made pursuant to | ||||||
23 | Section 2d
of this Act shall be included in the amount on which | ||||||
24 | such
2.1% or 1.75% discount is computed. In the case of | ||||||
25 | retailers who report
and pay the tax on a transaction by | ||||||
26 | transaction basis, as provided in this
Section, such discount |
| |||||||
| |||||||
1 | shall be taken with each such tax remittance
instead of when | ||||||
2 | such retailer files his periodic return. The discount allowed | ||||||
3 | under this Section is allowed only for returns that are filed | ||||||
4 | in the manner required by this Act. The Department may | ||||||
5 | disallow the discount for retailers whose certificate of | ||||||
6 | registration is revoked at the time the return is filed, but | ||||||
7 | only if the Department's decision to revoke the certificate of | ||||||
8 | registration has become final. | ||||||
9 | Before October 1, 2000, if the taxpayer's average monthly | ||||||
10 | tax liability
to the Department
under this Act, the Use Tax | ||||||
11 | Act, the Service Occupation Tax
Act, and the Service Use Tax | ||||||
12 | Act, excluding any liability for prepaid sales
tax to be | ||||||
13 | remitted in accordance with Section 2d of this Act, was
| ||||||
14 | $10,000
or more during the preceding 4 complete calendar | ||||||
15 | quarters, he shall file a
return with the Department each | ||||||
16 | month by the 20th day of the month next
following the month | ||||||
17 | during which such tax liability is incurred and shall
make | ||||||
18 | payments to the Department on or before the 7th, 15th, 22nd and | ||||||
19 | last
day of the month during which such liability is incurred.
| ||||||
20 | On and after October 1, 2000, if the taxpayer's average | ||||||
21 | monthly tax liability
to the Department under this Act, the | ||||||
22 | Use Tax Act, the Service Occupation Tax
Act, and the Service | ||||||
23 | Use Tax Act, excluding any liability for prepaid sales tax
to | ||||||
24 | be remitted in accordance with Section 2d of this Act, was | ||||||
25 | $20,000 or more
during the preceding 4 complete calendar | ||||||
26 | quarters, he shall file a return with
the Department each |
| |||||||
| |||||||
1 | month by the 20th day of the month next following the month
| ||||||
2 | during which such tax liability is incurred and shall make | ||||||
3 | payment to the
Department on or before the 7th, 15th, 22nd and | ||||||
4 | last day of the month during
which such liability is incurred.
| ||||||
5 | If the month
during which such tax liability is incurred began | ||||||
6 | prior to January 1, 1985,
each payment shall be in an amount | ||||||
7 | equal to 1/4 of the taxpayer's actual
liability for the month | ||||||
8 | or an amount set by the Department not to exceed
1/4 of the | ||||||
9 | average monthly liability of the taxpayer to the Department | ||||||
10 | for
the preceding 4 complete calendar quarters (excluding the | ||||||
11 | month of highest
liability and the month of lowest liability | ||||||
12 | in such 4 quarter period). If
the month during which such tax | ||||||
13 | liability is incurred begins on or after
January 1, 1985 and | ||||||
14 | prior to January 1, 1987, each payment shall be in an
amount | ||||||
15 | equal to 22.5% of the taxpayer's actual liability for the | ||||||
16 | month or
27.5% of the taxpayer's liability for the same | ||||||
17 | calendar
month of the preceding year. If the month during | ||||||
18 | which such tax
liability is incurred begins on or after | ||||||
19 | January 1, 1987 and prior to
January 1, 1988, each payment | ||||||
20 | shall be in an amount equal to 22.5% of the
taxpayer's actual | ||||||
21 | liability for the month or 26.25% of the taxpayer's
liability | ||||||
22 | for the same calendar month of the preceding year. If the month
| ||||||
23 | during which such tax liability is incurred begins on or after | ||||||
24 | January 1,
1988, and prior to January 1, 1989, or begins on or | ||||||
25 | after January 1, 1996, each
payment shall be in an amount
equal | ||||||
26 | to 22.5% of the taxpayer's actual liability for the month or |
| |||||||
| |||||||
1 | 25% of
the taxpayer's liability for the same calendar month of | ||||||
2 | the preceding year. If
the month during which such tax | ||||||
3 | liability is incurred begins on or after
January 1, 1989, and | ||||||
4 | prior to January 1, 1996, each payment shall be in an
amount | ||||||
5 | equal to 22.5% of the
taxpayer's actual liability for the | ||||||
6 | month or 25% of the taxpayer's
liability for the same calendar | ||||||
7 | month of the preceding year or 100% of the
taxpayer's actual | ||||||
8 | liability for the quarter monthly reporting period. The
amount | ||||||
9 | of such quarter monthly payments shall be credited against
the | ||||||
10 | final tax liability of the taxpayer's return for that month. | ||||||
11 | Before
October 1, 2000, once
applicable, the requirement of | ||||||
12 | the making of quarter monthly payments to
the Department by | ||||||
13 | taxpayers having an average monthly tax liability of
$10,000 | ||||||
14 | or more as determined in the manner provided above
shall | ||||||
15 | continue
until such taxpayer's average monthly liability to | ||||||
16 | the Department during
the preceding 4 complete calendar | ||||||
17 | quarters (excluding the month of highest
liability and the | ||||||
18 | month of lowest liability) is less than
$9,000, or until
such | ||||||
19 | taxpayer's average monthly liability to the Department as | ||||||
20 | computed for
each calendar quarter of the 4 preceding complete | ||||||
21 | calendar quarter period
is less than $10,000. However, if a | ||||||
22 | taxpayer can show the
Department that
a substantial change in | ||||||
23 | the taxpayer's business has occurred which causes
the taxpayer | ||||||
24 | to anticipate that his average monthly tax liability for the
| ||||||
25 | reasonably foreseeable future will fall below the $10,000 | ||||||
26 | threshold
stated above, then
such taxpayer
may petition the |
| |||||||
| |||||||
1 | Department for a change in such taxpayer's reporting
status. | ||||||
2 | On and after October 1, 2000, once applicable, the requirement | ||||||
3 | of
the making of quarter monthly payments to the Department by | ||||||
4 | taxpayers having an
average monthly tax liability of $20,000 | ||||||
5 | or more as determined in the manner
provided above shall | ||||||
6 | continue until such taxpayer's average monthly liability
to | ||||||
7 | the Department during the preceding 4 complete calendar | ||||||
8 | quarters (excluding
the month of highest liability and the | ||||||
9 | month of lowest liability) is less than
$19,000 or until such | ||||||
10 | taxpayer's average monthly liability to the Department as
| ||||||
11 | computed for each calendar quarter of the 4 preceding complete | ||||||
12 | calendar quarter
period is less than $20,000. However, if a | ||||||
13 | taxpayer can show the Department
that a substantial change in | ||||||
14 | the taxpayer's business has occurred which causes
the taxpayer | ||||||
15 | to anticipate that his average monthly tax liability for the
| ||||||
16 | reasonably foreseeable future will fall below the $20,000 | ||||||
17 | threshold stated
above, then such taxpayer may petition the | ||||||
18 | Department for a change in such
taxpayer's reporting status. | ||||||
19 | The Department shall change such taxpayer's
reporting status
| ||||||
20 | unless it finds that such change is seasonal in nature and not | ||||||
21 | likely to be
long term. Quarter monthly payment status shall | ||||||
22 | be determined under this paragraph as if the rate reduction to | ||||||
23 | 0% in Public Act 102-700 this amendatory Act of the 102nd | ||||||
24 | General Assembly on food for human consumption that is to be | ||||||
25 | consumed off the premises where it is sold (other than | ||||||
26 | alcoholic beverages, food consisting of or infused with adult |
| |||||||
| |||||||
1 | use cannabis, soft drinks, and food that has been prepared for | ||||||
2 | immediate consumption) had not occurred. For quarter monthly | ||||||
3 | payments due under this paragraph on or after July 1, 2023 and | ||||||
4 | through June 30, 2024, "25% of the taxpayer's liability for | ||||||
5 | the same calendar month of the preceding year" shall be | ||||||
6 | determined as if the rate reduction to 0% in Public Act 102-700 | ||||||
7 | this amendatory Act of the 102nd General Assembly had not | ||||||
8 | occurred. Quarter monthly payment status shall be determined | ||||||
9 | under this paragraph as if the rate reduction to 1.25% in | ||||||
10 | Public Act 102-700 this amendatory Act of the 102nd General | ||||||
11 | Assembly on sales tax holiday items had not occurred. For | ||||||
12 | quarter monthly payments due on or after July 1, 2023 and | ||||||
13 | through June 30, 2024, "25% of the taxpayer's liability for | ||||||
14 | the same calendar month of the preceding year" shall be | ||||||
15 | determined as if the rate reduction to 1.25% in Public Act | ||||||
16 | 102-700 this amendatory Act of the 102nd General Assembly on | ||||||
17 | sales tax holiday items had not occurred. If any such quarter | ||||||
18 | monthly payment is not paid at the time or
in the amount | ||||||
19 | required by this Section, then the taxpayer shall be liable | ||||||
20 | for
penalties and interest on the difference
between the | ||||||
21 | minimum amount due as a payment and the amount of such quarter
| ||||||
22 | monthly payment actually and timely paid, except insofar as | ||||||
23 | the
taxpayer has previously made payments for that month to | ||||||
24 | the Department in
excess of the minimum payments previously | ||||||
25 | due as provided in this Section.
The Department shall make | ||||||
26 | reasonable rules and regulations to govern the
quarter monthly |
| |||||||
| |||||||
1 | payment amount and quarter monthly payment dates for
taxpayers | ||||||
2 | who file on other than a calendar monthly basis. | ||||||
3 | The provisions of this paragraph apply before October 1, | ||||||
4 | 2001.
Without regard to whether a taxpayer is required to make | ||||||
5 | quarter monthly
payments as specified above, any taxpayer who | ||||||
6 | is required by Section 2d
of this Act to collect and remit | ||||||
7 | prepaid taxes and has collected prepaid
taxes which average in | ||||||
8 | excess of $25,000 per month during the preceding
2 complete | ||||||
9 | calendar quarters, shall file a return with the Department as
| ||||||
10 | required by Section 2f and shall make payments to the | ||||||
11 | Department on or before
the 7th, 15th, 22nd and last day of the | ||||||
12 | month during which such liability
is incurred. If the month | ||||||
13 | during which such tax liability is incurred
began prior to | ||||||
14 | September 1, 1985 (the effective date of Public Act 84-221), | ||||||
15 | each
payment shall be in an amount not less than 22.5% of the | ||||||
16 | taxpayer's actual
liability under Section 2d. If the month | ||||||
17 | during which such tax liability
is incurred begins on or after | ||||||
18 | January 1, 1986, each payment shall be in an
amount equal to | ||||||
19 | 22.5% of the taxpayer's actual liability for the month or
| ||||||
20 | 27.5% of the taxpayer's liability for the same calendar month | ||||||
21 | of the
preceding calendar year. If the month during which such | ||||||
22 | tax liability is
incurred begins on or after January 1, 1987, | ||||||
23 | each payment shall be in an
amount equal to 22.5% of the | ||||||
24 | taxpayer's actual liability for the month or
26.25% of the | ||||||
25 | taxpayer's liability for the same calendar month of the
| ||||||
26 | preceding year. The amount of such quarter monthly payments |
| |||||||
| |||||||
1 | shall be
credited against the final tax liability of the | ||||||
2 | taxpayer's return for that
month filed under this Section or | ||||||
3 | Section 2f, as the case may be. Once
applicable, the | ||||||
4 | requirement of the making of quarter monthly payments to
the | ||||||
5 | Department pursuant to this paragraph shall continue until | ||||||
6 | such
taxpayer's average monthly prepaid tax collections during | ||||||
7 | the preceding 2
complete calendar quarters is $25,000 or less. | ||||||
8 | If any such quarter monthly
payment is not paid at the time or | ||||||
9 | in the amount required, the taxpayer
shall be liable for | ||||||
10 | penalties and interest on such difference, except
insofar as | ||||||
11 | the taxpayer has previously made payments for that month in
| ||||||
12 | excess of the minimum payments previously due. | ||||||
13 | The provisions of this paragraph apply on and after | ||||||
14 | October 1, 2001.
Without regard to whether a taxpayer is | ||||||
15 | required to make quarter monthly
payments as specified above, | ||||||
16 | any taxpayer who is required by Section 2d of this
Act to | ||||||
17 | collect and remit prepaid taxes and has collected prepaid | ||||||
18 | taxes that
average in excess of $20,000 per month during the | ||||||
19 | preceding 4 complete calendar
quarters shall file a return | ||||||
20 | with the Department as required by Section 2f
and shall make | ||||||
21 | payments to the Department on or before the 7th, 15th, 22nd and
| ||||||
22 | last day of the month during which the liability is incurred. | ||||||
23 | Each payment
shall be in an amount equal to 22.5% of the | ||||||
24 | taxpayer's actual liability for the
month or 25% of the | ||||||
25 | taxpayer's liability for the same calendar month of the
| ||||||
26 | preceding year. The amount of the quarter monthly payments |
| |||||||
| |||||||
1 | shall be credited
against the final tax liability of the | ||||||
2 | taxpayer's return for that month filed
under this Section or | ||||||
3 | Section 2f, as the case may be. Once applicable, the
| ||||||
4 | requirement of the making of quarter monthly payments to the | ||||||
5 | Department
pursuant to this paragraph shall continue until the | ||||||
6 | taxpayer's average monthly
prepaid tax collections during the | ||||||
7 | preceding 4 complete calendar quarters
(excluding the month of | ||||||
8 | highest liability and the month of lowest liability) is
less | ||||||
9 | than $19,000 or until such taxpayer's average monthly | ||||||
10 | liability to the
Department as computed for each calendar | ||||||
11 | quarter of the 4 preceding complete
calendar quarters is less | ||||||
12 | than $20,000. If any such quarter monthly payment is
not paid | ||||||
13 | at the time or in the amount required, the taxpayer shall be | ||||||
14 | liable
for penalties and interest on such difference, except | ||||||
15 | insofar as the taxpayer
has previously made payments for that | ||||||
16 | month in excess of the minimum payments
previously due. | ||||||
17 | If any payment provided for in this Section exceeds
the | ||||||
18 | taxpayer's liabilities under this Act, the Use Tax Act, the | ||||||
19 | Service
Occupation Tax Act and the Service Use Tax Act, as | ||||||
20 | shown on an original
monthly return, the Department shall, if | ||||||
21 | requested by the taxpayer, issue to
the taxpayer a credit | ||||||
22 | memorandum no later than 30 days after the date of
payment. The | ||||||
23 | credit evidenced by such credit memorandum may
be assigned by | ||||||
24 | the taxpayer to a similar taxpayer under this Act, the
Use Tax | ||||||
25 | Act, the Service Occupation Tax Act or the Service Use Tax Act, | ||||||
26 | in
accordance with reasonable rules and regulations to be |
| |||||||
| |||||||
1 | prescribed by the
Department. If no such request is made, the | ||||||
2 | taxpayer may credit such excess
payment against tax liability | ||||||
3 | subsequently to be remitted to the Department
under this Act, | ||||||
4 | the Use Tax Act, the Service Occupation Tax Act or the
Service | ||||||
5 | Use Tax Act, in accordance with reasonable rules and | ||||||
6 | regulations
prescribed by the Department. If the Department | ||||||
7 | subsequently determined
that all or any part of the credit | ||||||
8 | taken was not actually due to the
taxpayer, the taxpayer's | ||||||
9 | 2.1% and 1.75% vendor's discount shall be reduced
by 2.1% or | ||||||
10 | 1.75% of the difference between the credit taken and that
| ||||||
11 | actually due, and that taxpayer shall be liable for penalties | ||||||
12 | and interest
on such difference. | ||||||
13 | If a retailer of motor fuel is entitled to a credit under | ||||||
14 | Section 2d of
this Act which exceeds the taxpayer's liability | ||||||
15 | to the Department under
this Act for the month for which the | ||||||
16 | taxpayer is filing a return, the
Department shall issue the | ||||||
17 | taxpayer a credit memorandum for the excess. | ||||||
18 | Beginning January 1, 1990, each month the Department shall | ||||||
19 | pay into
the Local Government Tax Fund, a special fund in the | ||||||
20 | State treasury which
is hereby created, the net revenue | ||||||
21 | realized for the preceding month from
the 1% tax imposed under | ||||||
22 | this Act. | ||||||
23 | Beginning January 1, 1990, each month the Department shall | ||||||
24 | pay into
the County and Mass Transit District Fund, a special | ||||||
25 | fund in the State
treasury which is hereby created, 4% of the | ||||||
26 | net revenue realized
for the preceding month from the 6.25% |
| |||||||
| |||||||
1 | general rate other than aviation fuel sold on or after | ||||||
2 | December 1, 2019. This exception for aviation fuel only | ||||||
3 | applies for so long as the revenue use requirements of 49 | ||||||
4 | U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State. | ||||||
5 | Beginning August 1, 2000, each
month the Department shall | ||||||
6 | pay into the
County and Mass Transit District Fund 20% of the | ||||||
7 | net revenue realized for the
preceding month from the 1.25% | ||||||
8 | rate on the selling price of motor fuel and
gasohol. If, in any | ||||||
9 | month, the tax on sales tax holiday items, as defined in | ||||||
10 | Section 2-8, is imposed at the rate of 1.25%, then the | ||||||
11 | Department shall pay 20% of the net revenue realized for that | ||||||
12 | month from the 1.25% rate on the selling price of sales tax | ||||||
13 | holiday items into the County and Mass Transit District Fund. | ||||||
14 | Beginning January 1, 1990, each month the Department shall | ||||||
15 | pay into
the Local Government Tax Fund 16% of the net revenue | ||||||
16 | realized for the
preceding month from the 6.25% general rate | ||||||
17 | on the selling price of
tangible personal property other than | ||||||
18 | aviation fuel sold on or after December 1, 2019. This | ||||||
19 | exception for aviation fuel only applies for so long as the | ||||||
20 | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | ||||||
21 | 47133 are binding on the State. | ||||||
22 | For aviation fuel sold on or after December 1, 2019, each | ||||||
23 | month the Department shall pay into the State Aviation Program | ||||||
24 | Fund 20% of the net revenue realized for the preceding month | ||||||
25 | from the 6.25% general rate on the selling price of aviation | ||||||
26 | fuel, less an amount estimated by the Department to be |
| |||||||
| |||||||
1 | required for refunds of the 20% portion of the tax on aviation | ||||||
2 | fuel under this Act, which amount shall be deposited into the | ||||||
3 | Aviation Fuel Sales Tax Refund Fund. The Department shall only | ||||||
4 | pay moneys into the State Aviation Program Fund and the | ||||||
5 | Aviation Fuel Sales Tax Refund Fund under this Act for so long | ||||||
6 | as the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
7 | U.S.C. 47133 are binding on the State. | ||||||
8 | Beginning August 1, 2000, each
month the Department shall | ||||||
9 | pay into the
Local Government Tax Fund 80% of the net revenue | ||||||
10 | realized for the preceding
month from the 1.25% rate on the | ||||||
11 | selling price of motor fuel and gasohol. If, in any month, the | ||||||
12 | tax on sales tax holiday items, as defined in Section 2-8, is | ||||||
13 | imposed at the rate of 1.25%, then the Department shall pay 80% | ||||||
14 | of the net revenue realized for that month from the 1.25% rate | ||||||
15 | on the selling price of sales tax holiday items into the Local | ||||||
16 | Government Tax Fund. | ||||||
17 | Beginning October 1, 2009, each month the Department shall | ||||||
18 | pay into the Capital Projects Fund an amount that is equal to | ||||||
19 | an amount estimated by the Department to represent 80% of the | ||||||
20 | net revenue realized for the preceding month from the sale of | ||||||
21 | candy, grooming and hygiene products, and soft drinks that had | ||||||
22 | been taxed at a rate of 1% prior to September 1, 2009 but that | ||||||
23 | are now taxed at 6.25%. | ||||||
24 | Beginning July 1, 2011, each
month the Department shall | ||||||
25 | pay into the Clean Air Act Permit Fund 80% of the net revenue | ||||||
26 | realized for the
preceding month from the 6.25% general rate |
| |||||||
| |||||||
1 | on the selling price of sorbents used in Illinois in the | ||||||
2 | process of sorbent injection as used to comply with the | ||||||
3 | Environmental Protection Act or the federal Clean Air Act, but | ||||||
4 | the total payment into the Clean Air Act Permit Fund under this | ||||||
5 | Act and the Use Tax Act shall not exceed $2,000,000 in any | ||||||
6 | fiscal year. | ||||||
7 | Beginning July 1, 2013, each month the Department shall | ||||||
8 | pay into the Underground Storage Tank Fund from the proceeds | ||||||
9 | collected under this Act, the Use Tax Act, the Service Use Tax | ||||||
10 | Act, and the Service Occupation Tax Act an amount equal to the | ||||||
11 | average monthly deficit in the Underground Storage Tank Fund | ||||||
12 | during the prior year, as certified annually by the Illinois | ||||||
13 | Environmental Protection Agency, but the total payment into | ||||||
14 | the Underground Storage Tank Fund under this Act, the Use Tax | ||||||
15 | Act, the Service Use Tax Act, and the Service Occupation Tax | ||||||
16 | Act shall not exceed $18,000,000 in any State fiscal year. As | ||||||
17 | used in this paragraph, the "average monthly deficit" shall be | ||||||
18 | equal to the difference between the average monthly claims for | ||||||
19 | payment by the fund and the average monthly revenues deposited | ||||||
20 | into the fund, excluding payments made pursuant to this | ||||||
21 | paragraph. | ||||||
22 | Beginning July 1, 2015, of the remainder of the moneys | ||||||
23 | received by the Department under the Use Tax Act, the Service | ||||||
24 | Use Tax Act, the Service Occupation Tax Act, and this Act, each | ||||||
25 | month the Department shall deposit $500,000 into the State | ||||||
26 | Crime Laboratory Fund. |
| ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||
1 | Of the remainder of the moneys received by the Department | |||||||||||||||||||||||||
2 | pursuant
to this Act, (a) 1.75% thereof shall be paid into the | |||||||||||||||||||||||||
3 | Build Illinois
Fund and (b) prior to July 1, 1989, 2.2% and on | |||||||||||||||||||||||||
4 | and after July 1, 1989,
3.8% thereof shall be paid into the | |||||||||||||||||||||||||
5 | Build Illinois Fund; provided, however,
that if in any fiscal | |||||||||||||||||||||||||
6 | year the sum of (1) the aggregate of 2.2% or 3.8%, as
the case | |||||||||||||||||||||||||
7 | may be, of the moneys received by the Department and required | |||||||||||||||||||||||||
8 | to
be paid into the Build Illinois Fund pursuant to this Act, | |||||||||||||||||||||||||
9 | Section 9 of the
Use Tax Act, Section 9 of the Service Use Tax | |||||||||||||||||||||||||
10 | Act, and Section 9 of the
Service Occupation Tax Act, such Acts | |||||||||||||||||||||||||
11 | being hereinafter called the "Tax
Acts" and such aggregate of | |||||||||||||||||||||||||
12 | 2.2% or 3.8%, as the case may be, of moneys
being hereinafter | |||||||||||||||||||||||||
13 | called the "Tax Act Amount", and (2) the amount
transferred to | |||||||||||||||||||||||||
14 | the Build Illinois Fund from the State and Local Sales Tax
| |||||||||||||||||||||||||
15 | Reform Fund shall be less than the Annual Specified Amount (as | |||||||||||||||||||||||||
16 | hereinafter
defined), an amount equal to the difference shall | |||||||||||||||||||||||||
17 | be immediately paid into
the Build Illinois Fund from other | |||||||||||||||||||||||||
18 | moneys received by the Department
pursuant to the Tax Acts; | |||||||||||||||||||||||||
19 | the "Annual Specified Amount" means the amounts
specified | |||||||||||||||||||||||||
20 | below for fiscal years 1986 through 1993: | |||||||||||||||||||||||||
|
| ||||||||||||||
| ||||||||||||||
| ||||||||||||||
4 | and means the Certified Annual Debt Service Requirement (as | |||||||||||||
5 | defined in
Section 13 of the Build Illinois Bond Act) or the | |||||||||||||
6 | Tax Act Amount, whichever
is greater, for fiscal year 1994 and | |||||||||||||
7 | each fiscal year thereafter; and
further provided, that if on | |||||||||||||
8 | the last business day of any month the sum of
(1) the Tax Act | |||||||||||||
9 | Amount required to be deposited into the Build Illinois
Bond | |||||||||||||
10 | Account in the Build Illinois Fund during such month and (2) | |||||||||||||
11 | the
amount transferred to the Build Illinois Fund from the | |||||||||||||
12 | State and Local
Sales Tax Reform Fund shall have been less than | |||||||||||||
13 | 1/12 of the Annual
Specified Amount, an amount equal to the | |||||||||||||
14 | difference shall be immediately
paid into the Build Illinois | |||||||||||||
15 | Fund from other moneys received by the
Department pursuant to | |||||||||||||
16 | the Tax Acts; and, further provided, that in no
event shall the | |||||||||||||
17 | payments required under the preceding proviso result in
| |||||||||||||
18 | aggregate payments into the Build Illinois Fund pursuant to | |||||||||||||
19 | this clause (b)
for any fiscal year in excess of the greater of | |||||||||||||
20 | (i) the Tax Act Amount or
(ii) the Annual Specified Amount for | |||||||||||||
21 | such fiscal year. The amounts payable
into the Build Illinois | |||||||||||||
22 | Fund under clause (b) of the first sentence in this
paragraph | |||||||||||||
23 | shall be payable only until such time as the aggregate amount | |||||||||||||
24 | on
deposit under each trust indenture securing Bonds issued | |||||||||||||
25 | and outstanding
pursuant to the Build Illinois Bond Act is | |||||||||||||
26 | sufficient, taking into account
any future investment income, |
| |||||||
| |||||||
1 | to fully provide, in accordance with such
indenture, for the | ||||||
2 | defeasance of or the payment of the principal of,
premium, if | ||||||
3 | any, and interest on the Bonds secured by such indenture and on
| ||||||
4 | any Bonds expected to be issued thereafter and all fees and | ||||||
5 | costs payable
with respect thereto, all as certified by the | ||||||
6 | Director of the Bureau of the
Budget (now Governor's Office of | ||||||
7 | Management and Budget). If on the last
business day of any | ||||||
8 | month in which Bonds are
outstanding pursuant to the Build | ||||||
9 | Illinois Bond Act, the aggregate of
moneys deposited in the | ||||||
10 | Build Illinois Bond Account in the Build Illinois
Fund in such | ||||||
11 | month shall be less than the amount required to be transferred
| ||||||
12 | in such month from the Build Illinois Bond Account to the Build | ||||||
13 | Illinois
Bond Retirement and Interest Fund pursuant to Section | ||||||
14 | 13 of the Build
Illinois Bond Act, an amount equal to such | ||||||
15 | deficiency shall be immediately
paid from other moneys | ||||||
16 | received by the Department pursuant to the Tax Acts
to the | ||||||
17 | Build Illinois Fund; provided, however, that any amounts paid | ||||||
18 | to the
Build Illinois Fund in any fiscal year pursuant to this | ||||||
19 | sentence shall be
deemed to constitute payments pursuant to | ||||||
20 | clause (b) of the first sentence
of this paragraph and shall | ||||||
21 | reduce the amount otherwise payable for such
fiscal year | ||||||
22 | pursuant to that clause (b). The moneys received by the
| ||||||
23 | Department pursuant to this Act and required to be deposited | ||||||
24 | into the Build
Illinois Fund are subject to the pledge, claim | ||||||
25 | and charge set forth in
Section 12 of the Build Illinois Bond | ||||||
26 | Act. |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | Subject to payment of amounts into the Build Illinois Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | as provided in
the preceding paragraph or in any amendment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | thereto hereafter enacted, the
following specified monthly | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | installment of the amount requested in the
certificate of the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Chairman of the Metropolitan Pier and Exposition
Authority | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | provided under Section 8.25f of the State Finance Act, but not | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | in
excess of sums designated as "Total Deposit", shall be | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | deposited in the
aggregate from collections under Section 9 of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | the Use Tax Act, Section 9 of
the Service Use Tax Act, Section | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10 | 9 of the Service Occupation Tax Act, and
Section 3 of the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11 | Retailers' Occupation Tax Act into the McCormick Place
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12 | Expansion Project Fund in the specified fiscal years. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
14 | Beginning July 20, 1993 and in each month of each fiscal | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
15 | year thereafter,
one-eighth of the amount requested in the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
16 | certificate of the Chairman of
the Metropolitan Pier and | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
17 | Exposition Authority for that fiscal year, less
the amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
18 | deposited into the McCormick Place Expansion Project Fund by | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
19 | the
State Treasurer in the respective month under subsection | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
20 | (g) of Section 13
of the Metropolitan Pier and Exposition | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
21 | Authority Act, plus cumulative
deficiencies in the deposits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
22 | required under this Section for previous
months and years, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
23 | shall be deposited into the McCormick Place Expansion
Project | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
24 | Fund, until the full amount requested for the fiscal year, but | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
25 | not
in excess of the amount specified above as "Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
26 | Deposit", has been deposited. |
| |||||||
| |||||||
1 | Subject to payment of amounts into the Capital Projects | ||||||
2 | Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, | ||||||
3 | and the McCormick Place Expansion Project Fund pursuant to the | ||||||
4 | preceding paragraphs or in any amendments thereto hereafter | ||||||
5 | enacted, for aviation fuel sold on or after December 1, 2019, | ||||||
6 | the Department shall each month deposit into the Aviation Fuel | ||||||
7 | Sales Tax Refund Fund an amount estimated by the Department to | ||||||
8 | be required for refunds of the 80% portion of the tax on | ||||||
9 | aviation fuel under this Act. The Department shall only | ||||||
10 | deposit moneys into the Aviation Fuel Sales Tax Refund Fund | ||||||
11 | under this paragraph for so long as the revenue use | ||||||
12 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are | ||||||
13 | binding on the State. | ||||||
14 | Subject to payment of amounts into the Build Illinois Fund | ||||||
15 | and the
McCormick Place Expansion Project Fund pursuant to the | ||||||
16 | preceding paragraphs
or in any amendments
thereto hereafter | ||||||
17 | enacted, beginning July 1, 1993 and ending on September 30, | ||||||
18 | 2013, the Department shall each
month pay into the Illinois | ||||||
19 | Tax Increment Fund 0.27% of 80% of the net revenue
realized for | ||||||
20 | the preceding month from the 6.25% general rate on the selling
| ||||||
21 | price of tangible personal property. | ||||||
22 | Subject to payment of amounts into the Build Illinois Fund | ||||||
23 | and the
McCormick Place Expansion Project Fund pursuant to the | ||||||
24 | preceding paragraphs or in any
amendments thereto hereafter | ||||||
25 | enacted, beginning with the receipt of the first
report of | ||||||
26 | taxes paid by an eligible business and continuing for a |
| |||||||
| |||||||
1 | 25-year
period, the Department shall each month pay into the | ||||||
2 | Energy Infrastructure
Fund 80% of the net revenue realized | ||||||
3 | from the 6.25% general rate on the
selling price of | ||||||
4 | Illinois-mined coal that was sold to an eligible business.
For | ||||||
5 | purposes of this paragraph, the term "eligible business" means | ||||||
6 | a new
electric generating facility certified pursuant to | ||||||
7 | Section 605-332 of the
Department of Commerce and Economic | ||||||
8 | Opportunity
Law of the Civil Administrative Code of Illinois. | ||||||
9 | Subject to payment of amounts into the Build Illinois | ||||||
10 | Fund, the McCormick Place Expansion Project Fund, the Illinois | ||||||
11 | Tax Increment Fund, and the Energy Infrastructure Fund | ||||||
12 | pursuant to the preceding paragraphs or in any amendments to | ||||||
13 | this Section hereafter enacted, beginning on the first day of | ||||||
14 | the first calendar month to occur on or after August 26, 2014 | ||||||
15 | (the effective date of Public Act 98-1098), each month, from | ||||||
16 | the collections made under Section 9 of the Use Tax Act, | ||||||
17 | Section 9 of the Service Use Tax Act, Section 9 of the Service | ||||||
18 | Occupation Tax Act, and Section 3 of the Retailers' Occupation | ||||||
19 | Tax Act, the Department shall pay into the Tax Compliance and | ||||||
20 | Administration Fund, to be used, subject to appropriation, to | ||||||
21 | fund additional auditors and compliance personnel at the | ||||||
22 | Department of Revenue, an amount equal to 1/12 of 5% of 80% of | ||||||
23 | the cash receipts collected during the preceding fiscal year | ||||||
24 | by the Audit Bureau of the Department under the Use Tax Act, | ||||||
25 | the Service Use Tax Act, the Service Occupation Tax Act, the | ||||||
26 | Retailers' Occupation Tax Act, and associated local occupation |
| |||||||
| |||||||
1 | and use taxes administered by the Department. | ||||||
2 | Subject to payments of amounts into the Build Illinois | ||||||
3 | Fund, the McCormick Place Expansion Project Fund, the Illinois | ||||||
4 | Tax Increment Fund, the Energy Infrastructure Fund, and the | ||||||
5 | Tax Compliance and Administration Fund as provided in this | ||||||
6 | Section, beginning on July 1, 2018 the Department shall pay | ||||||
7 | each month into the Downstate Public Transportation Fund the | ||||||
8 | moneys required to be so paid under Section 2-3 of the | ||||||
9 | Downstate Public Transportation Act. | ||||||
10 | Subject to successful execution and delivery of a | ||||||
11 | public-private agreement between the public agency and private | ||||||
12 | entity and completion of the civic build, beginning on July 1, | ||||||
13 | 2023, of the remainder of the moneys received by the | ||||||
14 | Department under the Use Tax Act, the Service Use Tax Act, the | ||||||
15 | Service Occupation Tax Act, and this Act, the Department shall | ||||||
16 | deposit the following specified deposits in the aggregate from | ||||||
17 | collections under the Use Tax Act, the Service Use Tax Act, the | ||||||
18 | Service Occupation Tax Act, and the Retailers' Occupation Tax | ||||||
19 | Act, as required under Section 8.25g of the State Finance Act | ||||||
20 | for distribution consistent with the Public-Private | ||||||
21 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
22 | The moneys received by the Department pursuant to this Act and | ||||||
23 | required to be deposited into the Civic and Transit | ||||||
24 | Infrastructure Fund are subject to the pledge, claim and | ||||||
25 | charge set forth in Section 25-55 of the Public-Private | ||||||
26 | Partnership for Civic and Transit Infrastructure Project Act. |
| |||||||
| |||||||
1 | As used in this paragraph, "civic build", "private entity", | ||||||
2 | "public-private agreement", and "public agency" have the | ||||||
3 | meanings provided in Section 25-10 of the Public-Private | ||||||
4 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
5 | Fiscal Year .............................Total Deposit | ||||||
6 | 2024 .....................................$200,000,000 | ||||||
7 | 2025 ....................................$206,000,000 | ||||||
8 | 2026 ....................................$212,200,000 | ||||||
9 | 2027 ....................................$218,500,000 | ||||||
10 | 2028 ....................................$225,100,000 | ||||||
11 | 2029 ....................................$288,700,000 | ||||||
12 | 2030 ....................................$298,900,000 | ||||||
13 | 2031 ....................................$309,300,000 | ||||||
14 | 2032 ....................................$320,100,000 | ||||||
15 | 2033 ....................................$331,200,000 | ||||||
16 | 2034 ....................................$341,200,000 | ||||||
17 | 2035 ....................................$351,400,000 | ||||||
18 | 2036 ....................................$361,900,000 | ||||||
19 | 2037 ....................................$372,800,000 | ||||||
20 | 2038 ....................................$384,000,000 | ||||||
21 | 2039 ....................................$395,500,000 | ||||||
22 | 2040 ....................................$407,400,000 | ||||||
23 | 2041 ....................................$419,600,000 | ||||||
24 | 2042 ....................................$432,200,000 | ||||||
25 | 2043 ....................................$445,100,000 | ||||||
26 | Beginning July 1, 2021 and until July 1, 2022, subject to |
| |||||||
| |||||||
1 | the payment of amounts into the County and Mass Transit | ||||||
2 | District Fund, the Local Government Tax Fund, the Build | ||||||
3 | Illinois Fund, the McCormick Place Expansion Project Fund, the | ||||||
4 | Illinois Tax Increment Fund, the Energy Infrastructure Fund, | ||||||
5 | and the Tax Compliance and Administration Fund as provided in | ||||||
6 | this Section, the Department shall pay each month into the | ||||||
7 | Road Fund the amount estimated to represent 16% of the net | ||||||
8 | revenue realized from the taxes imposed on motor fuel and | ||||||
9 | gasohol. Beginning July 1, 2022 and until July 1, 2023, | ||||||
10 | subject to the payment of amounts into the County and Mass | ||||||
11 | Transit District Fund, the Local Government Tax Fund, the | ||||||
12 | Build Illinois Fund, the McCormick Place Expansion Project | ||||||
13 | Fund, the Illinois Tax Increment Fund, the Energy | ||||||
14 | Infrastructure Fund, and the Tax Compliance and Administration | ||||||
15 | Fund as provided in this Section, the Department shall pay | ||||||
16 | each month into the Road Fund the amount estimated to | ||||||
17 | represent 32% of the net revenue realized from the taxes | ||||||
18 | imposed on motor fuel and gasohol. Beginning July 1, 2023 and | ||||||
19 | until July 1, 2024, subject to the payment of amounts into the | ||||||
20 | County and Mass Transit District Fund, the Local Government | ||||||
21 | Tax Fund, the Build Illinois Fund, the McCormick Place | ||||||
22 | Expansion Project Fund, the Illinois Tax Increment Fund, the | ||||||
23 | Energy Infrastructure Fund, and the Tax Compliance and | ||||||
24 | Administration Fund as provided in this Section, the | ||||||
25 | Department shall pay each month into the Road Fund the amount | ||||||
26 | estimated to represent 48% of the net revenue realized from |
| |||||||
| |||||||
1 | the taxes imposed on motor fuel and gasohol. Beginning July 1, | ||||||
2 | 2024 and until July 1, 2025, subject to the payment of amounts | ||||||
3 | into the County and Mass Transit District Fund, the Local | ||||||
4 | Government Tax Fund, the Build Illinois Fund, the McCormick | ||||||
5 | Place Expansion Project Fund, the Illinois Tax Increment Fund, | ||||||
6 | the Energy Infrastructure Fund, and the Tax Compliance and | ||||||
7 | Administration Fund as provided in this Section, the | ||||||
8 | Department shall pay each month into the Road Fund the amount | ||||||
9 | estimated to represent 64% of the net revenue realized from | ||||||
10 | the taxes imposed on motor fuel and gasohol. Beginning on July | ||||||
11 | 1, 2025, subject to the payment of amounts into the County and | ||||||
12 | Mass Transit District Fund, the Local Government Tax Fund, the | ||||||
13 | Build Illinois Fund, the McCormick Place Expansion Project | ||||||
14 | Fund, the Illinois Tax Increment Fund, the Energy | ||||||
15 | Infrastructure Fund, and the Tax Compliance and Administration | ||||||
16 | Fund as provided in this Section, the Department shall pay | ||||||
17 | each month into the Road Fund the amount estimated to | ||||||
18 | represent 80% of the net revenue realized from the taxes | ||||||
19 | imposed on motor fuel and gasohol. As used in this paragraph | ||||||
20 | "motor fuel" has the meaning given to that term in Section 1.1 | ||||||
21 | of the Motor Fuel Tax Law, and "gasohol" has the meaning given | ||||||
22 | to that term in Section 3-40 of the Use Tax Act. | ||||||
23 | Of the remainder of the moneys received by the Department | ||||||
24 | pursuant to
this Act, 75% thereof shall be paid into the State | ||||||
25 | treasury Treasury and 25% shall
be reserved in a special | ||||||
26 | account and used only for the transfer to the
Common School |
| |||||||
| |||||||
1 | Fund as part of the monthly transfer from the General Revenue
| ||||||
2 | Fund in accordance with Section 8a of the State Finance Act. | ||||||
3 | The Department may, upon separate written notice to a | ||||||
4 | taxpayer,
require the taxpayer to prepare and file with the | ||||||
5 | Department on a form
prescribed by the Department within not | ||||||
6 | less than 60 days after receipt
of the notice an annual | ||||||
7 | information return for the tax year specified in
the notice. | ||||||
8 | Such annual return to the Department shall include a
statement | ||||||
9 | of gross receipts as shown by the retailer's last Federal | ||||||
10 | income
tax return. If the total receipts of the business as | ||||||
11 | reported in the
Federal income tax return do not agree with the | ||||||
12 | gross receipts reported to
the Department of Revenue for the | ||||||
13 | same period, the retailer shall attach
to his annual return a | ||||||
14 | schedule showing a reconciliation of the 2
amounts and the | ||||||
15 | reasons for the difference. The retailer's annual
return to | ||||||
16 | the Department shall also disclose the cost of goods sold by
| ||||||
17 | the retailer during the year covered by such return, opening | ||||||
18 | and closing
inventories of such goods for such year, costs of | ||||||
19 | goods used from stock
or taken from stock and given away by the | ||||||
20 | retailer during such year,
payroll information of the | ||||||
21 | retailer's business during such year and any
additional | ||||||
22 | reasonable information which the Department deems would be
| ||||||
23 | helpful in determining the accuracy of the monthly, quarterly | ||||||
24 | or annual
returns filed by such retailer as provided for in | ||||||
25 | this Section. | ||||||
26 | If the annual information return required by this Section |
| |||||||
| |||||||
1 | is not
filed when and as required, the taxpayer shall be liable | ||||||
2 | as follows: | ||||||
3 | (i) Until January 1, 1994, the taxpayer shall be | ||||||
4 | liable
for a penalty equal to 1/6 of 1% of the tax due from | ||||||
5 | such taxpayer under
this Act during the period to be | ||||||
6 | covered by the annual return for each
month or fraction of | ||||||
7 | a month until such return is filed as required, the
| ||||||
8 | penalty to be assessed and collected in the same manner as | ||||||
9 | any other
penalty provided for in this Act. | ||||||
10 | (ii) On and after January 1, 1994, the taxpayer shall | ||||||
11 | be
liable for a penalty as described in Section 3-4 of the | ||||||
12 | Uniform Penalty and
Interest Act. | ||||||
13 | The chief executive officer, proprietor, owner or highest | ||||||
14 | ranking
manager shall sign the annual return to certify the | ||||||
15 | accuracy of the
information contained therein. Any person who | ||||||
16 | willfully signs the
annual return containing false or | ||||||
17 | inaccurate information shall be guilty
of perjury and punished | ||||||
18 | accordingly. The annual return form prescribed
by the | ||||||
19 | Department shall include a warning that the person signing the
| ||||||
20 | return may be liable for perjury. | ||||||
21 | The provisions of this Section concerning the filing of an | ||||||
22 | annual
information return do not apply to a retailer who is not | ||||||
23 | required to
file an income tax return with the United States | ||||||
24 | Government. | ||||||
25 | As soon as possible after the first day of each month, upon | ||||||
26 | certification
of the Department of Revenue, the Comptroller |
| |||||||
| |||||||
1 | shall order transferred and
the Treasurer shall transfer from | ||||||
2 | the General Revenue Fund to the Motor
Fuel Tax Fund an amount | ||||||
3 | equal to 1.7% of 80% of the net revenue realized
under this Act | ||||||
4 | for the second preceding
month.
Beginning April 1, 2000, this | ||||||
5 | transfer is no longer required
and shall not be made. | ||||||
6 | Net revenue realized for a month shall be the revenue | ||||||
7 | collected by the
State pursuant to this Act, less the amount | ||||||
8 | paid out during that month as
refunds to taxpayers for | ||||||
9 | overpayment of liability. | ||||||
10 | For greater simplicity of administration, manufacturers, | ||||||
11 | importers
and wholesalers whose products are sold at retail in | ||||||
12 | Illinois by
numerous retailers, and who wish to do so, may | ||||||
13 | assume the responsibility
for accounting and paying to the | ||||||
14 | Department all tax accruing under this
Act with respect to | ||||||
15 | such sales, if the retailers who are affected do not
make | ||||||
16 | written objection to the Department to this arrangement. | ||||||
17 | Any person who promotes, organizes, provides retail | ||||||
18 | selling space for
concessionaires or other types of sellers at | ||||||
19 | the Illinois State Fair, DuQuoin
State Fair, county fairs, | ||||||
20 | local fairs, art shows, flea markets and similar
exhibitions | ||||||
21 | or events, including any transient merchant as defined by | ||||||
22 | Section 2
of the Transient Merchant Act of 1987, is required to | ||||||
23 | file a report with the
Department providing the name of the | ||||||
24 | merchant's business, the name of the
person or persons engaged | ||||||
25 | in merchant's business, the permanent address and
Illinois | ||||||
26 | Retailers Occupation Tax Registration Number of the merchant, |
| |||||||
| |||||||
1 | the
dates and location of the event and other reasonable | ||||||
2 | information that the
Department may require. The report must | ||||||
3 | be filed not later than the 20th day
of the month next | ||||||
4 | following the month during which the event with retail sales
| ||||||
5 | was held. Any person who fails to file a report required by | ||||||
6 | this Section
commits a business offense and is subject to a | ||||||
7 | fine not to exceed $250. | ||||||
8 | Any person engaged in the business of selling tangible | ||||||
9 | personal
property at retail as a concessionaire or other type | ||||||
10 | of seller at the
Illinois State Fair, county fairs, art shows, | ||||||
11 | flea markets and similar
exhibitions or events, or any | ||||||
12 | transient merchants, as defined by Section 2
of the Transient | ||||||
13 | Merchant Act of 1987, may be required to make a daily report
of | ||||||
14 | the amount of such sales to the Department and to make a daily | ||||||
15 | payment of
the full amount of tax due. The Department shall | ||||||
16 | impose this
requirement when it finds that there is a | ||||||
17 | significant risk of loss of
revenue to the State at such an | ||||||
18 | exhibition or event. Such a finding
shall be based on evidence | ||||||
19 | that a substantial number of concessionaires
or other sellers | ||||||
20 | who are not residents of Illinois will be engaging in
the | ||||||
21 | business of selling tangible personal property at retail at | ||||||
22 | the
exhibition or event, or other evidence of a significant | ||||||
23 | risk of loss of revenue
to the State. The Department shall | ||||||
24 | notify concessionaires and other sellers
affected by the | ||||||
25 | imposition of this requirement. In the absence of
notification | ||||||
26 | by the Department, the concessionaires and other sellers
shall |
| |||||||
| |||||||
1 | file their returns as otherwise required in this Section. | ||||||
2 | (Source: P.A. 101-10, Article 15, Section 15-25, eff. 6-5-19; | ||||||
3 | 101-10, Article 25, Section 25-120, eff. 6-5-19; 101-27, eff. | ||||||
4 | 6-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19; | ||||||
5 | 101-636, eff. 6-10-20; 102-634, eff. 8-27-21; 102-700, Article | ||||||
6 | 60, Section 60-30, eff. 4-19-22; 102-700, Article 65, Section | ||||||
7 | 65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff. | ||||||
8 | 1-1-23; revised 12-13-22.) | ||||||
9 | ARTICLE 75. REV ILLINOIS PROGRAM | ||||||
10 | Section 75-5. The Reimagining Energy and Vehicles in | ||||||
11 | Illinois Act is amended by changing Sections 20, 30, 40, and 45 | ||||||
12 | as follows: | ||||||
13 | (20 ILCS 686/20)
| ||||||
14 | Sec. 20. REV Illinois Program; project applications. | ||||||
15 | (a) The Reimagining Energy and Vehicles in Illinois (REV | ||||||
16 | Illinois) Program is hereby established and shall be | ||||||
17 | administered by the Department. The Program will provide | ||||||
18 | financial incentives to any one or more of the following: (1) | ||||||
19 | eligible manufacturers of electric vehicles, electric vehicle | ||||||
20 | component parts, and electric vehicle power supply equipment; | ||||||
21 | (2) battery recycling and reuse manufacturers; (3) battery raw | ||||||
22 | materials refining service providers; or (4) renewable energy | ||||||
23 | manufacturers. |
| |||||||
| |||||||
1 | (b) Any taxpayer planning a project to be located in | ||||||
2 | Illinois may request consideration for designation of its | ||||||
3 | project as a REV Illinois Project, by formal written letter of | ||||||
4 | request or by formal application to the Department, in which | ||||||
5 | the applicant states its intent to make at least a specified | ||||||
6 | level of investment and intends to hire a specified number of | ||||||
7 | full-time employees at a designated location in Illinois. As | ||||||
8 | circumstances require, the Department shall require a formal | ||||||
9 | application from an applicant and a formal letter of request | ||||||
10 | for assistance. | ||||||
11 | (c) In order to qualify for credits under the REV Illinois | ||||||
12 | Program, an applicant must: | ||||||
13 | (1) if the applicant is an electric vehicle | ||||||
14 | manufacturer: | ||||||
15 | (A) make an investment of at least $1,500,000,000 | ||||||
16 | in capital improvements at the project site; | ||||||
17 | (B) to be placed in service within the State | ||||||
18 | within a 60-month period after approval of the | ||||||
19 | application; and | ||||||
20 | (C) create at least 500 new full-time employee | ||||||
21 | jobs; or | ||||||
22 | (2) if the applicant is an electric vehicle component | ||||||
23 | parts manufacturer or a renewable energy
manufacturer: | ||||||
24 | (A) make an investment of at least $300,000,000 in | ||||||
25 | capital improvements at the project site; | ||||||
26 | (B) manufacture one or more parts that are |
| |||||||
| |||||||
1 | primarily used for electric vehicle manufacturing; | ||||||
2 | (C) to be placed in service within the State | ||||||
3 | within a 60-month period after approval of the | ||||||
4 | application; and | ||||||
5 | (D) create at least 150 new full-time employee | ||||||
6 | jobs; or | ||||||
7 | (3) if the agreement is entered into before the
| ||||||
8 | effective date of this amendatory Act of the 102nd General
| ||||||
9 | Assembly and the applicant is an electric vehicle | ||||||
10 | manufacturer, an electric vehicle power supply equipment | ||||||
11 | manufacturer, an electric vehicle component part | ||||||
12 | manufacturer that does not qualify under paragraph (2) | ||||||
13 | above, a battery recycling and reuse manufacturer, or a | ||||||
14 | battery raw materials refining service provider: | ||||||
15 | (A) make an investment of at least $20,000,000 in | ||||||
16 | capital improvements at the project site; | ||||||
17 | (B) for electric vehicle component part | ||||||
18 | manufacturers, manufacture one or more parts that are | ||||||
19 | primarily used for electric vehicle manufacturing; | ||||||
20 | (C) to be placed in service within the State | ||||||
21 | within a 48-month period after approval of the | ||||||
22 | application; and | ||||||
23 | (D) create at least 50 new full-time employee | ||||||
24 | jobs; or | ||||||
25 | (3.1) if the agreement is entered into on or after the | ||||||
26 | effective date of this amendatory Act of the 102nd General |
| |||||||
| |||||||
1 | Assembly and the applicant is an electric vehicle | ||||||
2 | manufacturer, an electric vehicle power supply equipment | ||||||
3 | manufacturer, an electric vehicle component part | ||||||
4 | manufacturer that does not qualify under paragraph (2) | ||||||
5 | above, a renewable energy manufacturer that does not | ||||||
6 | qualify under paragraph (2) above, a battery recycling and | ||||||
7 | reuse manufacturer, or a battery raw materials refining | ||||||
8 | service provider: | ||||||
9 | (A) make an investment of at least $2,500,000 in | ||||||
10 | capital improvements at the project site; | ||||||
11 | (B) in the case of electric vehicle component part | ||||||
12 | manufacturers, manufacture one or more parts that are | ||||||
13 | used for electric vehicle manufacturing; | ||||||
14 | (C) to be placed in service within the State | ||||||
15 | within a 48-month period after approval of the | ||||||
16 | application; and | ||||||
17 | (D) create the lesser of 50 new full-time employee | ||||||
18 | jobs or new full-time employee jobs equivalent to 10% | ||||||
19 | of the Statewide baseline applicable to the taxpayer | ||||||
20 | and any related member at the time of application; or | ||||||
21 | (4) if the agreement is entered into before the
| ||||||
22 | effective date of this amendatory Act of the 102nd General
| ||||||
23 | Assembly and the applicant is an electric vehicle | ||||||
24 | manufacturer or electric vehicle component parts | ||||||
25 | manufacturer with existing operations within Illinois that | ||||||
26 | intends to convert or expand, in whole or in part, the |
| |||||||
| |||||||
1 | existing facility from traditional manufacturing to | ||||||
2 | primarily electric vehicle manufacturing, electric vehicle | ||||||
3 | component parts manufacturing, or electric vehicle power | ||||||
4 | supply equipment manufacturing: | ||||||
5 | (A) make an investment of at least $100,000,000 in | ||||||
6 | capital improvements at the project site; | ||||||
7 | (B) to be placed in service within the State | ||||||
8 | within a 60-month period after approval of the | ||||||
9 | application; and | ||||||
10 | (C) create the lesser of 75 new full-time employee | ||||||
11 | jobs or new full-time employee jobs equivalent to 10% | ||||||
12 | of the Statewide baseline applicable to the taxpayer | ||||||
13 | and any related member at the time of application; or | ||||||
14 | (4.1) if the agreement is entered into on or after the | ||||||
15 | effective date of this amendatory Act of the 102nd General | ||||||
16 | Assembly and the applicant (i) is an electric vehicle | ||||||
17 | manufacturer, an electric vehicle component parts | ||||||
18 | manufacturer, or a renewable energy manufacturer and (ii) | ||||||
19 | has existing operations within Illinois that the applicant | ||||||
20 | intends to convert or expand, in whole or in part, from | ||||||
21 | traditional manufacturing to electric vehicle | ||||||
22 | manufacturing, electric vehicle component parts | ||||||
23 | manufacturing, renewable energy manufacturing, or electric | ||||||
24 | vehicle power supply equipment manufacturing: | ||||||
25 | (A) make an investment of at least $100,000,000 in | ||||||
26 | capital improvements at the project site; |
| |||||||
| |||||||
1 | (B) to be placed in service within the State | ||||||
2 | within a 60-month period after approval of the | ||||||
3 | application; and | ||||||
4 | (C) create the lesser of 50 new full-time employee | ||||||
5 | jobs or new full-time employee jobs equivalent to 10% | ||||||
6 | of the Statewide baseline applicable to the taxpayer | ||||||
7 | and any related member at the time of application ; or . | ||||||
8 | (5) if the agreement is entered into on or after the | ||||||
9 | effective date of the changes made to this Section by this | ||||||
10 | amendatory Act of the 103rd General Assembly and before | ||||||
11 | June 1, 2024 and the applicant (i) is an electric vehicle | ||||||
12 | manufacturer, an electric vehicle component parts | ||||||
13 | manufacturer, or a renewable energy manufacturer or (ii) | ||||||
14 | has existing operations within Illinois that the applicant | ||||||
15 | intends to convert or expand, in whole or in part, from | ||||||
16 | traditional manufacturing to electric vehicle | ||||||
17 | manufacturing, electric vehicle component parts | ||||||
18 | manufacturing, renewable energy manufacturing, or electric | ||||||
19 | vehicle power supply equipment manufacturing: | ||||||
20 | (A) make an investment of at least $500,000,000 in | ||||||
21 | capital improvements at the project site; | ||||||
22 | (B) to be placed in service within the State | ||||||
23 | within a 60-month period after approval of the | ||||||
24 | application; and | ||||||
25 | (C) retain at least 800 full-time employee jobs at | ||||||
26 | the project. |
| |||||||
| |||||||
1 | (d) For agreements entered into prior to April 19, 2022 | ||||||
2 | (the effective date of Public Act 102-700), for any applicant | ||||||
3 | creating the full-time employee jobs noted in subsection (c), | ||||||
4 | those jobs must have a total compensation equal to or greater | ||||||
5 | than 120% of the average wage paid to full-time employees in | ||||||
6 | the county where the project is located, as determined by the | ||||||
7 | U.S. Bureau of Labor Statistics. For agreements entered into | ||||||
8 | on or after April 19, 2022 (the effective date of Public Act | ||||||
9 | 102-700), for any applicant creating the full-time employee | ||||||
10 | jobs noted in subsection (c), those jobs must have a | ||||||
11 | compensation equal to or greater than 120% of the average wage | ||||||
12 | paid to full-time employees in a similar position within an | ||||||
13 | occupational group in the county where the project is located, | ||||||
14 | as determined by the Department. | ||||||
15 | (e) For any applicant, within 24 months after being placed | ||||||
16 | in service, it must certify to the Department that it is carbon | ||||||
17 | neutral or has attained certification under one of more of the | ||||||
18 | following green building standards: | ||||||
19 | (1) BREEAM for New Construction or BREEAM In-Use; | ||||||
20 | (2) ENERGY STAR; | ||||||
21 | (3) Envision; | ||||||
22 | (4) ISO 50001 - energy management; | ||||||
23 | (5) LEED for Building Design and Construction or LEED | ||||||
24 | for Building Operations and Maintenance; | ||||||
25 | (6) Green Globes for New Construction or Green Globes | ||||||
26 | for Existing Buildings; or |
| |||||||
| |||||||
1 | (7) UL 3223. | ||||||
2 | (f) Each applicant must outline its hiring plan and | ||||||
3 | commitment to recruit and hire full-time employee positions at | ||||||
4 | the project site. The hiring plan may include a partnership | ||||||
5 | with an institution of higher education to provide | ||||||
6 | internships, including, but not limited to, internships | ||||||
7 | supported by the Clean Jobs Workforce Network Program, or | ||||||
8 | full-time permanent employment for students at the project | ||||||
9 | site. Additionally, the applicant may create or utilize | ||||||
10 | participants from apprenticeship programs that are approved by | ||||||
11 | and registered with the United States Department of Labor's | ||||||
12 | Bureau of Apprenticeship and Training. The applicant may apply | ||||||
13 | for apprenticeship education expense credits in accordance | ||||||
14 | with the provisions set forth in 14 Ill. Adm. Code 522. Each | ||||||
15 | applicant is required to report annually, on or before April | ||||||
16 | 15, on the diversity of its workforce in accordance with | ||||||
17 | Section 50 of this Act. For existing facilities of applicants | ||||||
18 | under paragraph (3) of subsection (b) above, if the taxpayer | ||||||
19 | expects a reduction in force due to its transition to | ||||||
20 | manufacturing electric vehicle, electric vehicle component | ||||||
21 | parts, or electric vehicle power supply equipment, the plan | ||||||
22 | submitted under this Section must outline the taxpayer's plan | ||||||
23 | to assist with retraining its workforce aligned with the | ||||||
24 | taxpayer's adoption of new technologies and anticipated | ||||||
25 | efforts to retrain employees through employment opportunities | ||||||
26 | within the taxpayer's workforce. |
| |||||||
| |||||||
1 | (g) Each applicant must demonstrate a contractual or other | ||||||
2 | relationship with a recycling facility, or demonstrate its own | ||||||
3 | recycling capabilities, at the time of application and report | ||||||
4 | annually a continuing contractual or other relationship with a | ||||||
5 | recycling facility and the percentage of batteries used in | ||||||
6 | electric vehicles recycled throughout the term of the | ||||||
7 | agreement. | ||||||
8 | (h) A taxpayer may not enter into more than one agreement | ||||||
9 | under this Act with respect to a single address or location for | ||||||
10 | the same period of time. Also, a taxpayer may not enter into an | ||||||
11 | agreement under this Act with respect to a single address or | ||||||
12 | location for the same period of time for which the taxpayer | ||||||
13 | currently holds an active agreement under the Economic | ||||||
14 | Development for a Growing Economy Tax Credit Act. This | ||||||
15 | provision does not preclude the applicant from entering into | ||||||
16 | an additional agreement after the expiration or voluntary | ||||||
17 | termination of an earlier agreement under this Act or under | ||||||
18 | the Economic Development for a Growing Economy Tax Credit Act | ||||||
19 | to the extent that the taxpayer's application otherwise | ||||||
20 | satisfies the terms and conditions of this Act and is approved | ||||||
21 | by the Department. An applicant with an existing agreement | ||||||
22 | under the Economic Development for a Growing Economy Tax | ||||||
23 | Credit Act may submit an application for an agreement under | ||||||
24 | this Act after it terminates any existing agreement under the | ||||||
25 | Economic Development for a Growing Economy Tax Credit Act with | ||||||
26 | respect to the same address or location. If a project that is |
| |||||||
| |||||||
1 | subject to an existing agreement under the Economic
| ||||||
2 | Development for a Growing Economy Tax Credit Act meets the
| ||||||
3 | requirements to be designated as a REV Illinois project under
| ||||||
4 | this Act, including for actions undertaken prior to the
| ||||||
5 | effective date of this Act, the taxpayer that is subject to
| ||||||
6 | that existing agreement under the Economic Development for a
| ||||||
7 | Growing Economy Tax Credit Act may apply to the Department to
| ||||||
8 | amend the agreement to allow the project to become a
| ||||||
9 | designated REV Illinois project. Following the amendment, time
| ||||||
10 | accrued during which the project was eligible for credits
| ||||||
11 | under the existing agreement under the Economic Development
| ||||||
12 | for a Growing Economy Tax Credit Act shall count toward the
| ||||||
13 | duration of the credit subject to limitations described in
| ||||||
14 | Section 40 of this Act. | ||||||
15 | (i) If, at any time following the designation of a project
| ||||||
16 | as a REV Illinois Project by the Department and prior to the
| ||||||
17 | termination or expiration of an agreement under this Act, the
| ||||||
18 | project ceases to qualify as a REV Illinois project because
| ||||||
19 | the taxpayer is no longer an electric vehicle manufacturer, an
| ||||||
20 | electric vehicle component manufacturer, an electric vehicle
| ||||||
21 | power supply equipment manufacturer, a battery recycling and
| ||||||
22 | reuse manufacturer, or a battery raw materials refining
| ||||||
23 | service provider, that project may receive tax credit awards
| ||||||
24 | as described in Section 5-15 and Section 5-51 of the Economic
| ||||||
25 | Development for a Growing Economy Tax Credit Act, as long as
| ||||||
26 | the project continues to meet requirements to obtain those
|
| |||||||
| |||||||
1 | credits as described in the Economic Development for a Growing
| ||||||
2 | Economy Tax Credit Act and remains compliant with terms
| ||||||
3 | contained in the Agreement under this Act not related to their
| ||||||
4 | status as an electric vehicle manufacturer, an electric
| ||||||
5 | vehicle component manufacturer, an electric vehicle power
| ||||||
6 | supply equipment manufacturer, a battery recycling and reuse
| ||||||
7 | manufacturer, or a battery raw materials refining service
| ||||||
8 | provider. Time accrued during which the project was eligible
| ||||||
9 | for credits under an agreement under this Act shall count
| ||||||
10 | toward the duration of the credit subject to limitations
| ||||||
11 | described in Section 5-45 of the Economic Development for a
| ||||||
12 | Growing Economy Tax Credit Act.
| ||||||
13 | (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22; | ||||||
14 | 102-1112, eff. 12-21-22; 102-1125, eff. 2-3-23.) | ||||||
15 | (20 ILCS 686/30)
| ||||||
16 | Sec. 30. Tax credit awards. | ||||||
17 | (a) Subject to the conditions set forth in this Act, a | ||||||
18 | taxpayer is entitled to a credit against the tax imposed | ||||||
19 | pursuant to subsections (a) and (b) of Section 201 of the | ||||||
20 | Illinois Income Tax Act for a taxable year beginning on or | ||||||
21 | after January 1, 2025 if the taxpayer is awarded a credit by | ||||||
22 | the Department in accordance with an agreement under this Act. | ||||||
23 | The Department has authority to award credits under this Act | ||||||
24 | on and after January 1, 2022. | ||||||
25 | (b) REV Illinois Credits. A taxpayer may receive a tax |
| |||||||
| |||||||
1 | credit against the tax imposed under subsections (a) and (b) | ||||||
2 | of Section 201 of the Illinois Income Tax Act, not to exceed | ||||||
3 | the sum of (i) 75% of the incremental income tax attributable | ||||||
4 | to new employees at the applicant's project and (ii) 10% of the | ||||||
5 | training costs of the new employees. If the project is located | ||||||
6 | in an underserved area or an energy transition area, then the | ||||||
7 | amount of the credit may not exceed the sum of (i) 100% of the | ||||||
8 | incremental income tax attributable to new employees at the | ||||||
9 | applicant's project; and (ii) 10% of the training costs of the | ||||||
10 | new employees. The percentage of training costs includable in | ||||||
11 | the calculation may be increased by an additional 15% for | ||||||
12 | training costs associated with new employees that are recent | ||||||
13 | (2 years or less) graduates, certificate holders, or | ||||||
14 | credential recipients from an institution of higher education | ||||||
15 | in Illinois, or, if the training is provided by an institution | ||||||
16 | of higher education in Illinois, the Clean Jobs Workforce | ||||||
17 | Network Program, or an apprenticeship and training program | ||||||
18 | located in Illinois and approved by and registered with the | ||||||
19 | United States Department of Labor's Bureau of Apprenticeship | ||||||
20 | and Training. An applicant is also eligible for a training | ||||||
21 | credit that shall not exceed 10% of the training costs of | ||||||
22 | retained employees for the purpose of upskilling to meet the | ||||||
23 | operational needs of the applicant or the REV Illinois | ||||||
24 | Project. The percentage of training costs includable in the | ||||||
25 | calculation shall not exceed a total of 25%. If an applicant | ||||||
26 | agrees to hire the required number of new employees, then the |
| |||||||
| |||||||
1 | maximum amount of the credit for that applicant may be | ||||||
2 | increased by an amount not to exceed 75% of the incremental | ||||||
3 | income tax attributable to retained employees at the | ||||||
4 | applicant's project; provided that, in order to receive the | ||||||
5 | increase for retained employees, the applicant must, if | ||||||
6 | applicable, meet or exceed the statewide baseline. For | ||||||
7 | agreements entered into on or after the effective date of this | ||||||
8 | amendatory Act of the 103rd General Assembly and before June | ||||||
9 | 1, 2024 that qualify under paragraph (5) of subsection (c) of | ||||||
10 | Section 20, a taxpayer may receive a tax credit not to exceed | ||||||
11 | 75% of the incremental income tax attributable to retained | ||||||
12 | employees at the applicant's project. If the project is in an | ||||||
13 | underserved area or an energy transition area and qualifies | ||||||
14 | under paragraph (5) of subsection (c) of Section 20, then the | ||||||
15 | maximum amount of the credit attributable to retained | ||||||
16 | employees for the applicant may be increased to an amount not | ||||||
17 | to exceed 100% of the incremental income tax attributable to | ||||||
18 | retained employees at the applicant's project. | ||||||
19 | If the Project is in an underserved area or an energy | ||||||
20 | transition area, the maximum amount of the credit attributable | ||||||
21 | to retained employees for the applicant may be increased to an | ||||||
22 | amount not to exceed 100% of the incremental income tax | ||||||
23 | attributable to retained employees at the applicant's project; | ||||||
24 | provided that, in order to receive the increase for retained | ||||||
25 | employees, the applicant must meet or exceed the statewide | ||||||
26 | baseline. REV Illinois Credits awarded may include credit |
| |||||||
| |||||||
1 | earned for incremental income tax withheld and training costs | ||||||
2 | incurred by the taxpayer beginning on or after January 1, | ||||||
3 | 2022. Credits so earned and certified by the Department may be | ||||||
4 | applied against the tax imposed by subsections (a) and (b) of | ||||||
5 | Section 201 of the Illinois Income Tax Act for taxable years | ||||||
6 | beginning on or after January 1, 2025. | ||||||
7 | (c) REV Construction Jobs Credit. For construction wages | ||||||
8 | associated with a project that qualified for a REV Illinois | ||||||
9 | Credit under subsection (b), the taxpayer may receive a tax | ||||||
10 | credit against the tax imposed under subsections (a) and (b) | ||||||
11 | of Section 201 of the Illinois Income Tax Act in an amount | ||||||
12 | equal to 50% of the incremental income tax attributable to | ||||||
13 | construction wages paid in connection with construction of the | ||||||
14 | project facilities, as a jobs credit for workers hired to | ||||||
15 | construct the project. | ||||||
16 | The REV Construction Jobs Credit may not exceed 75% of the | ||||||
17 | amount of the incremental income tax attributable to | ||||||
18 | construction wages paid in connection with construction of the | ||||||
19 | project facilities if the project is in an underserved area or | ||||||
20 | an energy transition area. | ||||||
21 | (d) The Department shall certify to the Department of | ||||||
22 | Revenue: (1) the identity of Taxpayers that are eligible for | ||||||
23 | the REV Illinois Credit and REV Construction Jobs Credit; (2) | ||||||
24 | the amount of the REV Illinois Credits and REV Construction | ||||||
25 | Jobs Credits awarded in each calendar year; and (3) the amount | ||||||
26 | of the REV Illinois Credit and REV Construction Jobs Credit |
| |||||||
| |||||||
1 | claimed in each calendar year. REV Illinois Credits awarded | ||||||
2 | may include credit earned for Incremental Income Tax withheld | ||||||
3 | and Training Costs incurred by the Taxpayer beginning on or | ||||||
4 | after January 1, 2022. Credits so earned and certified by the | ||||||
5 | Department may be applied against the tax imposed by Section | ||||||
6 | 201(a) and (b) of the Illinois Income Tax Act for taxable years | ||||||
7 | beginning on or after January 1, 2025. | ||||||
8 | (e) Applicants seeking certification for a tax credits | ||||||
9 | related to the construction of the project facilities in the | ||||||
10 | State shall require the contractor to enter into a project | ||||||
11 | labor agreement that conforms with the Project Labor | ||||||
12 | Agreements Act. | ||||||
13 | (f) Any applicant issued a certificate for a tax credit or | ||||||
14 | tax exemption under this Act must annually report to the | ||||||
15 | Department the total project tax benefits received. Reports | ||||||
16 | are due no later than May 31 of each year and shall cover the | ||||||
17 | previous calendar year. The first report is for the 2022 | ||||||
18 | calendar year and is due no later than May 31, 2023. For | ||||||
19 | applicants issued a certificate of exemption under Section 105 | ||||||
20 | of this Act, the report shall be the same as required for a | ||||||
21 | High Impact Business under subsection (a-5) of Section 8.1 of | ||||||
22 | the Illinois Enterprise Zone Act. Each person required to file | ||||||
23 | a return under the Gas Revenue Tax Act, the Electricity Excise | ||||||
24 | Tax Law, or the Telecommunications Excise Tax Act shall file a | ||||||
25 | report containing information about customers that are issued | ||||||
26 | an exemption certificate under Section 95 of this Act in the |
| |||||||
| |||||||
1 | same manner and form as they are required to report under | ||||||
2 | subsection (b) of Section 8.1 of the Illinois Enterprise Zone | ||||||
3 | Act. | ||||||
4 | (g) Nothing in this Act shall prohibit an award of credit | ||||||
5 | to an applicant that uses a PEO if all other award criteria are | ||||||
6 | satisfied. | ||||||
7 | (h) With respect to any portion of a REV Illinois Credit | ||||||
8 | that is based on the incremental income tax attributable to | ||||||
9 | new employees or retained employees, in lieu of the Credit | ||||||
10 | allowed under this Act against the taxes imposed pursuant to | ||||||
11 | subsections (a) and (b) of Section 201 of the Illinois Income | ||||||
12 | Tax Act, a taxpayer that otherwise meets the criteria set | ||||||
13 | forth in this Section, the taxpayer may elect to claim the | ||||||
14 | credit, on or after January 1, 2025, against its obligation to | ||||||
15 | pay over withholding under Section 704A of the Illinois Income | ||||||
16 | Tax Act. The election shall be made in the manner prescribed by | ||||||
17 | the Department of Revenue and once made shall be irrevocable.
| ||||||
18 | (Source: P.A. 102-669, eff. 11-16-21; 102-1112, eff. 12-21-22; | ||||||
19 | 102-1125, eff. 2-3-23; revised 4-5-23.) | ||||||
20 | (20 ILCS 686/40)
| ||||||
21 | Sec. 40. Amount and duration of the credits; limitation to | ||||||
22 | amount of costs of specified items. The Department shall | ||||||
23 | determine the amount and duration of the REV Illinois Credit | ||||||
24 | awarded under this Act, subject to the limitations set forth | ||||||
25 | in this Act. For a project that qualified under paragraph (1), |
| |||||||
| |||||||
1 | (2), (4), or (4.1) , or (5) of subsection (c) of Section 20, the | ||||||
2 | duration of the credit may not exceed 15 taxable years, with an
| ||||||
3 | option to renew the agreement for no more than one term not to
| ||||||
4 | exceed an additional 15 taxable years. For a project that | ||||||
5 | qualified under paragraph (3) or (3.1) of subsection (c) of | ||||||
6 | Section 20, the duration of the credit may not exceed 10 | ||||||
7 | taxable years, with an option to renew the agreement for no
| ||||||
8 | more than one term not to exceed an additional 10 taxable
| ||||||
9 | years. The credit may be stated as a percentage of the | ||||||
10 | incremental income tax and training costs attributable to the | ||||||
11 | applicant's project and may include a fixed dollar limitation. | ||||||
12 | Nothing in this Section shall prevent the Department, in | ||||||
13 | consultation with the Department of Revenue, from adopting | ||||||
14 | rules to extend the sunset of any earned, existing, and unused | ||||||
15 | tax credit or credits a taxpayer may be in possession of, as | ||||||
16 | provided for in Section 605-1055 of the Department of Commerce | ||||||
17 | and Economic Opportunity Law of the Civil Administrative Code | ||||||
18 | of Illinois, notwithstanding the carry-forward provisions | ||||||
19 | pursuant to paragraph (4) of Section 211 of the Illinois | ||||||
20 | Income Tax Act.
| ||||||
21 | (Source: P.A. 102-669, eff. 11-16-21; 102-1112, eff. 12-21-22; | ||||||
22 | 102-1125, eff. 2-3-23; revised 4-5-23.) | ||||||
23 | (20 ILCS 686/45)
| ||||||
24 | Sec. 45. Contents of agreements with applicants. | ||||||
25 | (a) The Department shall enter into an agreement with an |
| |||||||
| |||||||
1 | applicant that is awarded a credit under this Act. The | ||||||
2 | agreement shall include all of the following: | ||||||
3 | (1) A detailed description of the project that is the | ||||||
4 | subject of the agreement, including the location and | ||||||
5 | amount of the investment and jobs created or retained. | ||||||
6 | (2) The duration of the credit, the first taxable year | ||||||
7 | for which the credit may be awarded, and the first taxable | ||||||
8 | year in which the credit may be used by the taxpayer. | ||||||
9 | (3) The credit amount that will be allowed for each | ||||||
10 | taxable year. | ||||||
11 | (4) For a project qualified under paragraphs (1), (2), | ||||||
12 | or (4) , or (5) of subsection (c) of Section 20, a | ||||||
13 | requirement that the taxpayer shall maintain operations at | ||||||
14 | the project location a minimum number of years not to | ||||||
15 | exceed 15. For a project qualified under paragraph (3) of | ||||||
16 | subsection (c) of Section 20, a requirement that the | ||||||
17 | taxpayer shall maintain operations at the project location | ||||||
18 | a minimum number of years not to exceed 10. | ||||||
19 | (5) A specific method for determining the number of | ||||||
20 | new employees and if applicable, retained employees, | ||||||
21 | employed during a taxable year. | ||||||
22 | (6) A requirement that the taxpayer shall annually | ||||||
23 | report to the Department the number of new employees, the | ||||||
24 | incremental income tax withheld in connection with the new | ||||||
25 | employees, and any other information the Department deems | ||||||
26 | necessary and appropriate to perform its duties under this |
| |||||||
| |||||||
1 | Act. | ||||||
2 | (7) A requirement that the Director is authorized to | ||||||
3 | verify with the appropriate State agencies the amounts | ||||||
4 | reported under paragraph (6), and after doing so shall | ||||||
5 | issue a certificate to the taxpayer stating that the | ||||||
6 | amounts have been verified. | ||||||
7 | (8) A requirement that the taxpayer shall provide | ||||||
8 | written notification to the Director not more than 30 days | ||||||
9 | after the taxpayer makes or receives a proposal that would | ||||||
10 | transfer the taxpayer's State tax liability obligations to | ||||||
11 | a successor taxpayer. | ||||||
12 | (9) A detailed description of the number of new | ||||||
13 | employees to be hired, and the occupation and payroll of | ||||||
14 | full-time jobs to be created or retained because of the | ||||||
15 | project. | ||||||
16 | (10) The minimum investment the taxpayer will make in | ||||||
17 | capital improvements, the time period for placing the | ||||||
18 | property in service, and the designated location in | ||||||
19 | Illinois for the investment. | ||||||
20 | (11) A requirement that the taxpayer shall provide | ||||||
21 | written notification to the Director and the Director's | ||||||
22 | designee not more than 30 days after the taxpayer | ||||||
23 | determines that the minimum job creation or retention, | ||||||
24 | employment payroll, or investment no longer is or will be | ||||||
25 | achieved or maintained as set forth in the terms and | ||||||
26 | conditions of the agreement. Additionally, the |
| |||||||
| |||||||
1 | notification should outline to the Department the number | ||||||
2 | of layoffs, date of the layoffs, and detail taxpayer's | ||||||
3 | efforts to provide career and training counseling for the | ||||||
4 | impacted workers with industry-related certifications and | ||||||
5 | trainings. | ||||||
6 | (12) If applicable, a A provision that, if the total | ||||||
7 | number of new employees falls below a specified level, the | ||||||
8 | allowance of credit shall be suspended until the number of | ||||||
9 | new employees equals or exceeds the agreement amount. | ||||||
10 | (13) If applicable, a provision that specifies the | ||||||
11 | statewide baseline at the time of application for retained | ||||||
12 | employees. The Additionally, the agreement must have a | ||||||
13 | provision addressing if the total number of retained | ||||||
14 | employees falls below the lesser of the statewide baseline | ||||||
15 | or the retention requirements specified in the agreement , | ||||||
16 | the allowance of the credit shall be suspended until the | ||||||
17 | number of retained employees equals or exceeds the | ||||||
18 | agreement amount. | ||||||
19 | (14) A detailed description of the items for which the | ||||||
20 | costs incurred by the Taxpayer will be included in the | ||||||
21 | limitation on the Credit provided in Section 40. | ||||||
22 | (15) If the agreement is entered into before the | ||||||
23 | effective date of the changes made to this Section by this | ||||||
24 | amendatory Act of the 103rd General Assembly, a A | ||||||
25 | provision stating that if the taxpayer fails to meet | ||||||
26 | either the investment or job creation and retention |
| |||||||
| |||||||
1 | requirements specified in the agreement during the entire | ||||||
2 | 5-year period beginning on the first day of the first | ||||||
3 | taxable year in which the agreement is executed and ending | ||||||
4 | on the last day of the fifth taxable year after the | ||||||
5 | agreement is executed, then the agreement is automatically | ||||||
6 | terminated on the last day of the fifth taxable year after | ||||||
7 | the agreement is executed, and the taxpayer is not | ||||||
8 | entitled to the award of any credits for any of that 5-year | ||||||
9 | period. If the agreement is entered into on or after the | ||||||
10 | effective date of the changes made to this Section by this | ||||||
11 | amendatory Act of the 103rd General Assembly, a provision | ||||||
12 | stating that if the taxpayer fails to meet either the | ||||||
13 | investment or job creation and retention requirements | ||||||
14 | specified in the agreement during the entire 10-year | ||||||
15 | period beginning on the effective date of the agreement | ||||||
16 | and ending 10 years after the effective date of the | ||||||
17 | agreement, then the agreement is automatically terminated, | ||||||
18 | and the taxpayer is not entitled to the award of any | ||||||
19 | credits for any of that 10-year period. | ||||||
20 | (16) A provision stating that if the taxpayer ceases | ||||||
21 | principal operations with the intent to permanently shut | ||||||
22 | down the project in the State during the term of the | ||||||
23 | Agreement, then the entire credit amount awarded to the | ||||||
24 | taxpayer prior to the date the taxpayer ceases principal | ||||||
25 | operations shall be returned to the Department and shall | ||||||
26 | be reallocated to the local workforce investment area in |
| |||||||
| |||||||
1 | which the project was located. | ||||||
2 | (17) A provision stating that the Taxpayer must | ||||||
3 | provide the reports outlined in Sections 50 and 55 on or | ||||||
4 | before April 15 each year. | ||||||
5 | (18) A provision requiring the taxpayer to report | ||||||
6 | annually its contractual obligations or otherwise with a | ||||||
7 | recycling facility for its operations. | ||||||
8 | (19) Any other performance conditions or contract | ||||||
9 | provisions the Department determines are necessary or | ||||||
10 | appropriate. | ||||||
11 | (20) Each taxpayer under paragraph (1) of subsection | ||||||
12 | (c) of Section 20 above shall maintain labor neutrality | ||||||
13 | toward any union organizing campaign for any employees of | ||||||
14 | the taxpayer assigned to work on the premises of the REV | ||||||
15 | Illinois Project Site. This paragraph shall not apply to | ||||||
16 | an electric vehicle manufacturer, electric vehicle | ||||||
17 | component part manufacturer, electric vehicle power supply | ||||||
18 | manufacturer, or renewable energy manufacturer, or any | ||||||
19 | joint venture including an electric vehicle manufacturer, | ||||||
20 | electric vehicle component part manufacturer, electric | ||||||
21 | vehicle power supply manufacturer, or renewable energy | ||||||
22 | manufacturer, who is subject to collective bargaining | ||||||
23 | agreement entered into prior to the taxpayer filing an | ||||||
24 | application pursuant to this Act. | ||||||
25 | (b) The Department shall post on its website the terms of | ||||||
26 | each agreement entered into under this Act. Such information |
| |||||||
| |||||||
1 | shall be posted within 10 days after entering into the | ||||||
2 | agreement and must include the following: | ||||||
3 | (1) the name of the taxpayer; | ||||||
4 | (2) the location of the project; | ||||||
5 | (3) the estimated value of the credit; | ||||||
6 | (4) the number of new employee jobs and, if | ||||||
7 | applicable, number of retained employee jobs at the | ||||||
8 | project; and | ||||||
9 | (5) whether or not the project is in an underserved | ||||||
10 | area or energy transition area.
| ||||||
11 | (Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23; | ||||||
12 | revised 4-5-23.) | ||||||
13 | ARTICLE 80. CIGARETTE TAX | ||||||
14 | Section 80-5. The Cigarette Tax Act is amended by changing | ||||||
15 | Section 2 as follows:
| ||||||
16 | (35 ILCS 130/2) (from Ch. 120, par. 453.2)
| ||||||
17 | Sec. 2. Tax imposed; rate; collection, payment, and | ||||||
18 | distribution;
discount. | ||||||
19 | (a) Beginning on July 1, 2019, in place of the aggregate | ||||||
20 | tax rate of 99 mills previously imposed by this Act, a tax is | ||||||
21 | imposed upon any person engaged in business as a retailer of | ||||||
22 | cigarettes at the rate of 149 mills per cigarette sold or | ||||||
23 | otherwise disposed of in the course of such business in this |
| |||||||
| |||||||
1 | State. | ||||||
2 | (b) The payment of such taxes shall be evidenced by a stamp | ||||||
3 | affixed to
each original package of cigarettes, or an | ||||||
4 | authorized substitute for such stamp
imprinted on each | ||||||
5 | original package of such cigarettes underneath the sealed
| ||||||
6 | transparent outside wrapper of such original package, as | ||||||
7 | hereinafter provided.
However, such taxes are not imposed upon | ||||||
8 | any activity in such business in
interstate commerce or | ||||||
9 | otherwise, which activity may not under
the Constitution and | ||||||
10 | statutes of the United States be made the subject of
taxation | ||||||
11 | by this State.
| ||||||
12 | Out of the 149 mills per cigarette tax imposed by | ||||||
13 | subsection (a), until July 1, 2023, the revenues received from | ||||||
14 | 4 mills shall be paid into the Common School Fund each month, | ||||||
15 | not to exceed $9,000,000 per month. Out of the 149 mills per | ||||||
16 | cigarette tax imposed by subsection (a), until July 1, 2023, | ||||||
17 | all of the revenues received from 7 mills shall be paid into | ||||||
18 | the Common School Fund each month. Out of the 149 mills per | ||||||
19 | cigarette tax imposed by subsection (a), until July 1, 2023, | ||||||
20 | 50 mills per cigarette each month shall be paid into the | ||||||
21 | Healthcare Provider Relief Fund. | ||||||
22 | Beginning on July 1, 2006 and until July 1, 2023 , all of | ||||||
23 | the moneys received by the Department of Revenue pursuant to | ||||||
24 | this Act and the Cigarette Use Tax Act, other than the moneys | ||||||
25 | that are dedicated to the Common School Fund and, beginning on | ||||||
26 | the effective date of this amendatory Act of the 97th General |
| |||||||
| |||||||
1 | Assembly, other than the moneys from the additional taxes | ||||||
2 | imposed by this amendatory Act of the 97th General Assembly | ||||||
3 | that must be paid each month into the Healthcare Provider | ||||||
4 | Relief Fund, and other than the moneys from the additional | ||||||
5 | taxes imposed by this amendatory Act of the 101st General | ||||||
6 | Assembly that must be paid each month under subsection (c), | ||||||
7 | shall be distributed each month as follows: first, there shall | ||||||
8 | be paid into the General Revenue Fund an amount that, when | ||||||
9 | added to the amount paid into the Common School Fund for that | ||||||
10 | month, equals $29,200,000; then, from the moneys remaining, if | ||||||
11 | any amounts required to be paid into the General Revenue Fund | ||||||
12 | in previous months remain unpaid, those amounts shall be paid | ||||||
13 | into the General Revenue Fund; then from the moneys remaining, | ||||||
14 | $5,000,000 per month shall be paid into the School | ||||||
15 | Infrastructure Fund; then, if any amounts required to be paid | ||||||
16 | into the School Infrastructure Fund in previous months remain | ||||||
17 | unpaid, those amounts shall be paid into the School | ||||||
18 | Infrastructure Fund; then the moneys remaining, if any, shall | ||||||
19 | be paid into the Long-Term Care Provider Fund.
Any amounts | ||||||
20 | required to be paid into the General Revenue Fund, the School | ||||||
21 | Infrastructure Fund, the Long-Term Care Provider Fund, the | ||||||
22 | Common School Fund, the Capital Projects Fund, or the | ||||||
23 | Healthcare Provider Relief Fund under this subsection that | ||||||
24 | remain unpaid as of July 1, 2023 shall be deemed satisfied on | ||||||
25 | that date, eliminating any deficiency accrued through that | ||||||
26 | date. |
| |||||||
| |||||||
1 | (c) Beginning on July 1, 2019 and until July 1, 2023 , all | ||||||
2 | of the moneys from the additional taxes imposed by Public Act | ||||||
3 | 101-31, except for moneys received from the tax on electronic | ||||||
4 | cigarettes, received by the Department of Revenue pursuant to | ||||||
5 | this Act, the Cigarette Use Tax Act, and the Tobacco Products | ||||||
6 | Tax Act of 1995 shall be distributed each month into the | ||||||
7 | Capital Projects Fund. | ||||||
8 | (c-5) Beginning on July 1, 2023, all of the moneys | ||||||
9 | received by the Department of Revenue pursuant to (i) this | ||||||
10 | Act, (ii) the Cigarette Use Tax Act, and (iii) the tax imposed | ||||||
11 | on little cigars under Section 10-10 of the Tobacco Products | ||||||
12 | Tax Act of 1995 shall be paid each month as follows: | ||||||
13 | (1) 7% into the Common School Fund; | ||||||
14 | (2) 34% into the Healthcare Provider Relief Fund; | ||||||
15 | (3) 34% into the Capital Projects Fund; and | ||||||
16 | (4) 25% into the General Revenue Fund. | ||||||
17 | (d) Until July 1, 2023, except Except for moneys received | ||||||
18 | from the additional taxes imposed by Public Act 101-31, moneys | ||||||
19 | collected from the tax imposed on little cigars under Section | ||||||
20 | 10-10 of the Tobacco Products Tax Act of 1995 shall be included | ||||||
21 | with the moneys collected under the Cigarette Tax Act and the | ||||||
22 | Cigarette Use Tax Act when making distributions to the Common | ||||||
23 | School Fund, the Healthcare Provider Relief Fund, the General | ||||||
24 | Revenue Fund, the School Infrastructure Fund, and the | ||||||
25 | Long-Term Care Provider Fund under this Section. Any amounts, | ||||||
26 | including moneys collected from the tax imposed on little |
| |||||||
| |||||||
1 | cigars under Section 10-10 of the Tobacco Products Tax Act of | ||||||
2 | 1995, that are required to be paid into the General Revenue | ||||||
3 | Fund, the School Infrastructure Fund, the Long-Term Care | ||||||
4 | Provider Fund, the Common School Fund, the Capital Projects | ||||||
5 | Fund, or the Healthcare Provider Relief Fund under subsection | ||||||
6 | (b) that remain unpaid as of July 1, 2023 shall be deemed | ||||||
7 | satisfied on that date, eliminating any deficiency accrued | ||||||
8 | through that date. Beginning on July 1, 2023, moneys collected | ||||||
9 | from the tax imposed on little cigars under Section 10-10 of | ||||||
10 | the Tobacco Products Tax Act of 1995 shall be included with the | ||||||
11 | moneys collected under the Cigarette Tax Act and the Cigarette | ||||||
12 | Use Tax Act when making distributions under subsections (c-5). | ||||||
13 | (e) If the tax imposed herein terminates or has | ||||||
14 | terminated, distributors
who have bought stamps while such tax | ||||||
15 | was in effect and who therefore paid
such tax, but who can | ||||||
16 | show, to the Department's satisfaction, that they
sold the | ||||||
17 | cigarettes to which they affixed such stamps after such tax | ||||||
18 | had
terminated and did not recover the tax or its equivalent | ||||||
19 | from purchasers,
shall be allowed by the Department to take | ||||||
20 | credit for such absorbed tax
against subsequent tax stamp | ||||||
21 | purchases from the Department by such
distributor.
| ||||||
22 | (f) The impact of the tax levied by this Act is imposed | ||||||
23 | upon the retailer
and shall be prepaid or pre-collected by the | ||||||
24 | distributor for the purpose of
convenience and facility only, | ||||||
25 | and the amount of the tax shall be added to
the price of the | ||||||
26 | cigarettes sold by such distributor. Collection of the tax
|
| |||||||
| |||||||
1 | shall be evidenced by a stamp or stamps affixed to each | ||||||
2 | original package of
cigarettes, as hereinafter provided. Any | ||||||
3 | distributor who purchases stamps may credit any excess | ||||||
4 | payments verified by the Department against amounts | ||||||
5 | subsequently due for the purchase of additional stamps, until | ||||||
6 | such time as no excess payment remains.
| ||||||
7 | (g) Each distributor shall collect the tax from the | ||||||
8 | retailer at or before
the time of the sale, shall affix the | ||||||
9 | stamps as hereinafter required, and
shall remit the tax | ||||||
10 | collected from retailers to the Department, as
hereinafter | ||||||
11 | provided. Any distributor who fails to properly collect and | ||||||
12 | pay
the tax imposed by this Act shall be liable for the tax.
| ||||||
13 | (h) Any distributor having cigarettes in his or her | ||||||
14 | possession on July 1, 2019 to which tax stamps have been | ||||||
15 | affixed, and any distributor having stamps in his or her | ||||||
16 | possession on July 1, 2019 that have not been affixed to | ||||||
17 | packages of cigarettes before July 1, 2019, is required to pay | ||||||
18 | the additional tax that begins on July 1, 2019 imposed by this | ||||||
19 | amendatory Act of the 101st General Assembly to the extent | ||||||
20 | that the volume of affixed and unaffixed stamps in the | ||||||
21 | distributor's possession on July 1, 2019 exceeds the average | ||||||
22 | monthly volume of cigarette stamps purchased by the | ||||||
23 | distributor in calendar year 2018. This payment, less the | ||||||
24 | discount provided in subsection (l), is due when the | ||||||
25 | distributor first makes a purchase of cigarette stamps on or | ||||||
26 | after July 1, 2019 or on the first due date of a return under |
| |||||||
| |||||||
1 | this Act occurring on or after July 1, 2019, whichever occurs | ||||||
2 | first. Those distributors may elect to pay the additional tax | ||||||
3 | on packages of cigarettes to which stamps have been affixed | ||||||
4 | and on any stamps in the distributor's possession that have | ||||||
5 | not been affixed to packages of cigarettes in their possession | ||||||
6 | on July 1, 2019 over a period not to exceed 12 months from the | ||||||
7 | due date of the additional tax by notifying the Department in | ||||||
8 | writing. The first payment for distributors making such | ||||||
9 | election is due when the distributor first makes a purchase of | ||||||
10 | cigarette tax stamps on or after July 1, 2019 or on the first | ||||||
11 | due date of a return under this Act occurring on or after July | ||||||
12 | 1, 2019, whichever occurs first. Distributors making such an | ||||||
13 | election are not entitled to take the discount provided in | ||||||
14 | subsection (l) on such payments. | ||||||
15 | (i) Any retailer having cigarettes in its possession on | ||||||
16 | July 1, 2019 to which tax stamps have been affixed is not | ||||||
17 | required to pay the additional tax that begins on July 1, 2019 | ||||||
18 | imposed by this amendatory Act of the 101st General Assembly | ||||||
19 | on those stamped cigarettes. | ||||||
20 | (j) Distributors making sales of cigarettes to secondary | ||||||
21 | distributors shall add the amount of the tax to the price of | ||||||
22 | the cigarettes sold by the distributors. Secondary | ||||||
23 | distributors making sales of cigarettes to retailers shall | ||||||
24 | include the amount of the tax in the price of the cigarettes | ||||||
25 | sold to retailers. The amount of tax shall not be less than the | ||||||
26 | amount of taxes imposed by the State and all local |
| |||||||
| |||||||
1 | jurisdictions. The amount of local taxes shall be calculated | ||||||
2 | based on the location of the retailer's place of business | ||||||
3 | shown on the retailer's certificate of registration or | ||||||
4 | sub-registration issued to the retailer pursuant to Section 2a | ||||||
5 | of the Retailers' Occupation Tax Act. The original packages of | ||||||
6 | cigarettes sold to the retailer shall bear all the required | ||||||
7 | stamps, or other indicia, for the taxes included in the price | ||||||
8 | of cigarettes. | ||||||
9 | (k) The amount of the Cigarette Tax imposed by this Act | ||||||
10 | shall be separately
stated, apart from the price of the goods, | ||||||
11 | by distributors, manufacturer representatives, secondary | ||||||
12 | distributors, and
retailers, in all bills and sales invoices.
| ||||||
13 | (l) The distributor shall be required to collect the tax | ||||||
14 | provided
under paragraph (a) hereof, and, to cover the costs | ||||||
15 | of such collection,
shall be allowed a discount during any | ||||||
16 | year commencing July 1st and ending
the following June 30th in | ||||||
17 | accordance with the schedule set out
hereinbelow, which | ||||||
18 | discount shall be allowed at the time of purchase of the
stamps | ||||||
19 | when purchase is required by this Act, or at the time when the | ||||||
20 | tax
is remitted to the Department without the purchase of | ||||||
21 | stamps from the
Department when that method of paying the tax | ||||||
22 | is required or authorized by
this Act. | ||||||
23 | On and after
December 1, 1985, a discount equal to 1.75% of | ||||||
24 | the amount of the tax payable
under this Act up to and | ||||||
25 | including the first $3,000,000 paid hereunder by such
| ||||||
26 | distributor to the Department during any such year and 1.5% of |
| |||||||
| |||||||
1 | the amount of
any additional tax paid hereunder by such | ||||||
2 | distributor to the Department during
any such year shall | ||||||
3 | apply.
| ||||||
4 | Two or more distributors that use a common means of | ||||||
5 | affixing revenue tax
stamps or that are owned or controlled by | ||||||
6 | the same interests shall be
treated as a single distributor | ||||||
7 | for the purpose of computing the discount.
| ||||||
8 | (m) The taxes herein imposed are in addition to all other | ||||||
9 | occupation or
privilege taxes imposed by the State of | ||||||
10 | Illinois, or by any political
subdivision thereof, or by any | ||||||
11 | municipal corporation.
| ||||||
12 | (Source: P.A. 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; | ||||||
13 | 101-604, eff. 12-13-19.)
| ||||||
14 | ARTICLE 85. USE AND OCCUPATION TAXES | ||||||
15 | Section 85-5. The Use Tax Act is amended by changing | ||||||
16 | Section 12 as follows:
| ||||||
17 | (35 ILCS 105/12) (from Ch. 120, par. 439.12)
| ||||||
18 | Sec. 12. Applicability of Retailers' Occupation Tax Act | ||||||
19 | and Uniform Penalty
and Interest Act. All of the provisions of | ||||||
20 | Sections 1d, 1e, 1f, 1i, 1j,
1j.1, 1k,
1m,
1n, 1o, 2-6, 2-12, | ||||||
21 | 2-54, 2a, 2b, 2c, 3, 4 (except that the time limitation | ||||||
22 | provisions
shall run
from the date when the tax is due rather | ||||||
23 | than from the date when gross
receipts are received), 5 |
| |||||||
| |||||||
1 | (except that the time limitation provisions on
the issuance of | ||||||
2 | notices of tax liability shall run from the date when the
tax | ||||||
3 | is due rather than from the date when gross receipts are | ||||||
4 | received and
except that in the case of a failure to file a | ||||||
5 | return required by this Act, no
notice of tax liability shall | ||||||
6 | be issued on and after each July 1 and January 1
covering tax | ||||||
7 | due with that return during any month or period more than 6 | ||||||
8 | years
before that July 1 or January 1, respectively), 5a,
5b, | ||||||
9 | 5c, 5d, 5e, 5f, 5g, 5h, 5j, 5k, 5l, 5m, 5n, 7, 8, 9, 10, 11 and | ||||||
10 | 12 of
the Retailers' Occupation Tax Act and Section 3-7 of the | ||||||
11 | Uniform
Penalty and Interest Act, which are not inconsistent | ||||||
12 | with this Act,
shall apply, as far as practicable, to the | ||||||
13 | subject matter of this Act to
the same extent as if such | ||||||
14 | provisions were included herein.
| ||||||
15 | (Source: P.A. 102-700, eff. 4-19-22.)
| ||||||
16 | Section 85-10. The Service Use Tax Act is amended by | ||||||
17 | changing Section 12 as follows:
| ||||||
18 | (35 ILCS 110/12) (from Ch. 120, par. 439.42)
| ||||||
19 | Sec. 12. Applicability of Retailers' Occupation Tax Act | ||||||
20 | and Uniform
Penalty and Interest Act. All of the provisions of | ||||||
21 | Sections 1d, 1e, 1f, 1i,
1j, 1j.1, 1k, 1m,
1n, 1o, 2-6, 2-12, | ||||||
22 | 2-54, 2a, 2b, 2c, 3 (except as to the disposition by the | ||||||
23 | Department
of the
money collected under this Act), 4 (except | ||||||
24 | that the time limitation
provisions shall run from the date |
| |||||||
| |||||||
1 | when gross receipts are received), 5
(except that the time | ||||||
2 | limitation provisions on the issuance of notices of
tax | ||||||
3 | liability shall run from the date when the tax is due rather | ||||||
4 | than from
the date when gross receipts are received and except | ||||||
5 | that in the case of a
failure to file a return required by this | ||||||
6 | Act, no notice of tax liability shall
be issued on and after | ||||||
7 | July 1 and January 1 covering tax due with that return
during | ||||||
8 | any month or period more than 6 years before that July 1 or | ||||||
9 | January
1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g,
5j, 5k, | ||||||
10 | 5l, 5m, 5n, 6d, 7, 8, 9, 10, 11 and 12 of the Retailers' | ||||||
11 | Occupation Tax Act which
are not inconsistent with this Act, | ||||||
12 | and Section 3-7 of the Uniform
Penalty and Interest Act, shall | ||||||
13 | apply, as far as practicable, to
the subject matter of this Act | ||||||
14 | to the same extent as if such provisions
were included herein.
| ||||||
15 | (Source: P.A. 102-700, eff. 4-19-22.)
| ||||||
16 | Section 85-15. The Service Occupation Tax Act is amended | ||||||
17 | by changing Section 12 as follows:
| ||||||
18 | (35 ILCS 115/12) (from Ch. 120, par. 439.112)
| ||||||
19 | Sec. 12. All of the provisions of Sections 1d, 1e, 1f, 1i, | ||||||
20 | 1j, 1j.1, 1k,
1m,
1n, 1o, 2-6, 2-12, 2-54, 2a, 2b, 2c, 3 | ||||||
21 | (except as to the disposition by the Department
of the
tax | ||||||
22 | collected under this Act), 4 (except that the time limitation
| ||||||
23 | provisions shall run from the date when the tax is due rather | ||||||
24 | than from the
date when gross receipts are received), 5 |
| |||||||
| |||||||
1 | (except that the time limitation
provisions on the issuance of | ||||||
2 | notices of tax liability shall run from the
date when the tax | ||||||
3 | is due rather than from the date when gross receipts are
| ||||||
4 | received), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k, 5l, 5m, 5n, 6d, | ||||||
5 | 7, 8, 9, 10, 11 and
12 of the "Retailers' Occupation Tax Act" | ||||||
6 | which are not inconsistent with this
Act, and Section 3-7 of | ||||||
7 | the Uniform Penalty and Interest Act shall
apply, as far as | ||||||
8 | practicable, to the subject matter of this Act
to the same | ||||||
9 | extent as if such provisions were included herein.
| ||||||
10 | (Source: P.A. 102-700, eff. 4-19-22.)
| ||||||
11 | ARTICLE 90. MUNICIPAL USE AND OCCUPATION TAXES | ||||||
12 | Section 90-5. The Illinois Municipal Code is amended by | ||||||
13 | changing Sections 8-11-1.4 and 8-11-1.5 as follows:
| ||||||
14 | (65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
| ||||||
15 | Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation | ||||||
16 | Tax Act. The
corporate authorities of a non-home rule | ||||||
17 | municipality may impose a
tax upon all persons engaged, in | ||||||
18 | such municipality, in the business of
making sales of service | ||||||
19 | for expenditure on
public infrastructure or for property tax | ||||||
20 | relief or both as defined in
Section 8-11-1.2 if approved by
| ||||||
21 | referendum as provided in Section 8-11-1.1, of the selling | ||||||
22 | price of
all tangible personal property transferred by such | ||||||
23 | servicemen either in
the form of tangible personal property or |
| |||||||
| |||||||
1 | in the form of real estate as
an incident to a sale of service.
| ||||||
2 | If the tax is approved by referendum on or after July 14, 2010 | ||||||
3 | (the effective date of Public Act 96-1057), the corporate | ||||||
4 | authorities of a non-home rule municipality may, until | ||||||
5 | December 31, 2030 December 31, 2020 , use the proceeds of the | ||||||
6 | tax for expenditure on municipal operations, in addition to or | ||||||
7 | in lieu of any expenditure on public infrastructure or for | ||||||
8 | property tax relief. The tax imposed may not be more than 1% | ||||||
9 | and may be imposed only in
1/4% increments. The tax may not be | ||||||
10 | imposed on tangible personal property taxed at the 1% rate | ||||||
11 | under the Service Occupation Tax Act (or at the 0% rate imposed | ||||||
12 | under this amendatory Act of the 102nd General Assembly). | ||||||
13 | Beginning December 1, 2019, this tax is not imposed on sales of | ||||||
14 | aviation fuel unless the tax revenue is expended for | ||||||
15 | airport-related purposes. If a municipality does not have an | ||||||
16 | airport-related purpose to which it dedicates aviation fuel | ||||||
17 | tax revenue, then aviation fuel is excluded from the tax. Each | ||||||
18 | municipality must comply with the certification requirements | ||||||
19 | for airport-related purposes under Section 2-22 of the | ||||||
20 | Retailers' Occupation Tax Act. For purposes of this Section, | ||||||
21 | "airport-related purposes" has the meaning ascribed in Section | ||||||
22 | 6z-20.2 of the State Finance Act. This exclusion for aviation | ||||||
23 | fuel only applies for so long as the revenue use requirements | ||||||
24 | of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the | ||||||
25 | municipality.
The tax imposed by a municipality
pursuant to | ||||||
26 | this Section and all civil penalties that may be assessed as
an |
| |||||||
| |||||||
1 | incident thereof shall be collected and enforced by the State
| ||||||
2 | Department of Revenue. The certificate of registration which | ||||||
3 | is issued
by the Department to a retailer under the Retailers' | ||||||
4 | Occupation Tax
Act or under the Service Occupation Tax Act | ||||||
5 | shall permit
such registrant to engage in a business which is | ||||||
6 | taxable under any
ordinance or resolution enacted pursuant to | ||||||
7 | this Section without
registering separately with the | ||||||
8 | Department under such ordinance or
resolution or under this | ||||||
9 | Section. The Department shall have full power
to administer | ||||||
10 | and enforce this Section; to collect all taxes and
penalties | ||||||
11 | due hereunder; to dispose of taxes and penalties so collected
| ||||||
12 | in the manner hereinafter provided, and to determine all | ||||||
13 | rights to
credit memoranda arising on account of the erroneous | ||||||
14 | payment of tax or
penalty hereunder. In the administration of, | ||||||
15 | and compliance with, this
Section the Department and persons | ||||||
16 | who are subject to this Section
shall have the same rights, | ||||||
17 | remedies, privileges, immunities, powers and
duties, and be | ||||||
18 | subject to the same conditions, restrictions, limitations,
| ||||||
19 | penalties and definitions of terms, and employ the same modes | ||||||
20 | of procedure,
as are prescribed in Sections 1a-1, 2, 2a, 3 | ||||||
21 | through 3-50 (in respect to
all provisions therein other than | ||||||
22 | the State rate of tax), 4 (except that
the reference to the | ||||||
23 | State shall be to the taxing municipality), 5, 7, 8
(except | ||||||
24 | that the jurisdiction to which the tax shall be a debt to the
| ||||||
25 | extent indicated in that Section 8 shall be the taxing | ||||||
26 | municipality), 9
(except as to the disposition of taxes and |
| |||||||
| |||||||
1 | penalties collected, and except
that the returned merchandise | ||||||
2 | credit for this municipal tax may not be
taken against any | ||||||
3 | State tax, and except that the retailer's discount is not | ||||||
4 | allowed for taxes paid on aviation fuel that are subject to the | ||||||
5 | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | ||||||
6 | 47133), 10, 11, 12 (except the reference therein to
Section 2b | ||||||
7 | of the Retailers' Occupation Tax Act), 13 (except that any
| ||||||
8 | reference to the State shall mean the taxing municipality), | ||||||
9 | the first
paragraph of Section 15, 16, 17, 18, 19 and 20 of the | ||||||
10 | Service Occupation
Tax Act and Section 3-7 of the Uniform | ||||||
11 | Penalty and Interest Act, as fully
as if those provisions were | ||||||
12 | set forth herein.
| ||||||
13 | No municipality may impose a tax under this Section unless | ||||||
14 | the municipality
also imposes a tax at the same rate under | ||||||
15 | Section 8-11-1.3 of this Code.
| ||||||
16 | Persons subject to any tax imposed pursuant to the | ||||||
17 | authority granted
in this Section may reimburse themselves for | ||||||
18 | their serviceman's tax
liability hereunder by separately | ||||||
19 | stating such tax as an additional
charge, which charge may be | ||||||
20 | stated in combination, in a single amount,
with State tax | ||||||
21 | which servicemen are authorized to collect under the
Service | ||||||
22 | Use Tax Act, pursuant to such bracket schedules as the
| ||||||
23 | Department may prescribe.
| ||||||
24 | Whenever the Department determines that a refund should be | ||||||
25 | made under
this Section to a claimant instead of issuing | ||||||
26 | credit memorandum, the
Department shall notify the State |
| |||||||
| |||||||
1 | Comptroller, who shall cause the
order to be drawn for the | ||||||
2 | amount specified, and to the person named,
in such | ||||||
3 | notification from the Department. Such refund shall be paid by
| ||||||
4 | the State Treasurer out of the municipal retailers' occupation | ||||||
5 | tax fund or the Local Government Aviation Trust Fund, as | ||||||
6 | appropriate.
| ||||||
7 | Except as otherwise provided in this paragraph, the | ||||||
8 | Department shall forthwith pay over to the State Treasurer,
ex | ||||||
9 | officio, as trustee, all taxes and penalties collected | ||||||
10 | hereunder for deposit into the municipal retailers' occupation | ||||||
11 | tax fund. Taxes and penalties collected on aviation fuel sold | ||||||
12 | on or after December 1, 2019, shall be immediately paid over by | ||||||
13 | the Department to the State Treasurer, ex officio, as trustee, | ||||||
14 | for deposit into the Local Government Aviation Trust Fund. The | ||||||
15 | Department shall only pay moneys into the Local Government | ||||||
16 | Aviation Trust Fund under this Section for so long as the | ||||||
17 | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | ||||||
18 | 47133 are binding on the municipality. | ||||||
19 | As soon as possible after the first day of each month, | ||||||
20 | beginning January 1, 2011, upon certification of the | ||||||
21 | Department of Revenue, the Comptroller shall order | ||||||
22 | transferred, and the Treasurer shall transfer, to the STAR | ||||||
23 | Bonds Revenue Fund the local sales tax increment, as defined | ||||||
24 | in the Innovation Development and Economy Act, collected under | ||||||
25 | this Section during the second preceding calendar month for | ||||||
26 | sales within a STAR bond district. |
| |||||||
| |||||||
1 | After the monthly transfer to the STAR Bonds Revenue Fund, | ||||||
2 | on
or before the 25th day of each calendar month, the | ||||||
3 | Department shall
prepare and certify to the Comptroller the | ||||||
4 | disbursement of stated sums
of money to named municipalities, | ||||||
5 | the municipalities to be those from
which suppliers and | ||||||
6 | servicemen have paid taxes or penalties hereunder to
the | ||||||
7 | Department during the second preceding calendar month. The | ||||||
8 | amount
to be paid to each municipality shall be the amount (not | ||||||
9 | including credit
memoranda and not including taxes and | ||||||
10 | penalties collected on aviation fuel sold on or after December | ||||||
11 | 1, 2019) collected hereunder during the second preceding | ||||||
12 | calendar
month by the Department, and not including an amount | ||||||
13 | equal to the amount
of refunds made during the second | ||||||
14 | preceding calendar month by the
Department on behalf of such | ||||||
15 | municipality, and not including any amounts that are | ||||||
16 | transferred to the STAR Bonds Revenue Fund, less 1.5% of the | ||||||
17 | remainder, which the Department shall transfer into the Tax | ||||||
18 | Compliance and Administration Fund. The Department, at the | ||||||
19 | time of each monthly disbursement to the municipalities, shall | ||||||
20 | prepare and certify to the State Comptroller the amount to be | ||||||
21 | transferred into the Tax Compliance and Administration Fund | ||||||
22 | under this Section. Within 10 days
after receipt, by the | ||||||
23 | Comptroller, of the disbursement certification to
the | ||||||
24 | municipalities, the General Revenue Fund, and the Tax | ||||||
25 | Compliance and Administration Fund provided for in this
| ||||||
26 | Section to be given to the Comptroller by the Department, the
|
| |||||||
| |||||||
1 | Comptroller shall cause the orders to be drawn for the | ||||||
2 | respective
amounts in accordance with the directions contained | ||||||
3 | in such
certification.
| ||||||
4 | The Department of Revenue shall implement Public Act | ||||||
5 | 91-649 so as to collect the tax on and after January 1, 2002.
| ||||||
6 | Nothing in this Section shall be construed to authorize a
| ||||||
7 | municipality to impose a tax upon the privilege of engaging in | ||||||
8 | any
business which under the constitution of the United States | ||||||
9 | may not be
made the subject of taxation by this State.
| ||||||
10 | As used in this Section, "municipal" or "municipality" | ||||||
11 | means or refers to
a city, village or incorporated town, | ||||||
12 | including an incorporated town which
has superseded a civil | ||||||
13 | township.
| ||||||
14 | This Section shall be known and may be cited as the | ||||||
15 | "Non-Home Rule Municipal
Service Occupation Tax Act".
| ||||||
16 | (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; | ||||||
17 | 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
| ||||||
18 | (65 ILCS 5/8-11-1.5) (from Ch. 24, par. 8-11-1.5)
| ||||||
19 | Sec. 8-11-1.5. Non-Home Rule Municipal Use Tax Act. The | ||||||
20 | corporate
authorities of a non-home rule municipality may | ||||||
21 | impose a
tax upon the privilege of using, in such | ||||||
22 | municipality, any item of tangible
personal property which is | ||||||
23 | purchased at retail from a retailer, and which is
titled or | ||||||
24 | registered with an agency of this State's government, based on | ||||||
25 | the selling price of such tangible personal
property, as |
| |||||||
| |||||||
1 | "selling price" is defined in the Use Tax Act, for expenditure
| ||||||
2 | on public infrastructure or for property tax relief or both as | ||||||
3 | defined in
Section 8-11-1.2, if approved by
referendum as | ||||||
4 | provided in Section 8-11-1.1. If the tax is approved by | ||||||
5 | referendum on or after the effective date of this amendatory | ||||||
6 | Act of the 96th General Assembly, the corporate authorities of | ||||||
7 | a non-home rule municipality may, until December 31, 2030 | ||||||
8 | December 31, 2020 , use the proceeds of the tax for expenditure | ||||||
9 | on municipal operations, in addition to or in lieu of any | ||||||
10 | expenditure on public infrastructure or for property tax | ||||||
11 | relief. The tax imposed may not be more
than 1% and may be | ||||||
12 | imposed only in 1/4% increments. Such tax shall
be
collected | ||||||
13 | from persons whose Illinois address for title or registration
| ||||||
14 | purposes is given as being in such municipality. Such tax | ||||||
15 | shall be
collected by the municipality imposing such tax.
A | ||||||
16 | non-home rule municipality may not
impose and collect the tax | ||||||
17 | prior to January 1, 2002.
| ||||||
18 | This Section shall be known and may be cited as the | ||||||
19 | "Non-Home Rule
Municipal Use Tax Act".
| ||||||
20 | (Source: P.A. 96-1057, eff. 7-14-10; 97-837, eff. 7-20-12.)
| ||||||
21 | ARTICLE 95. VOLUNTEER EMERGENCY WORKERS | ||||||
22 | Section 95-5. The Illinois Administrative Procedure Act is | ||||||
23 | amended by adding Section 5-45.36 as follows: |
| |||||||
| |||||||
1 | (5 ILCS 100/5-45.36 new) | ||||||
2 | Sec. 5-45.36. Emergency rulemaking. To provide for the | ||||||
3 | expeditious and timely implementation of Section 234 of the | ||||||
4 | Illinois Income Tax Act, emergency rules implementing that | ||||||
5 | Section may be adopted in accordance with Section 5-45 by the | ||||||
6 | Department of Revenue. The adoption of emergency rules | ||||||
7 | authorized by Section 5-45 and this Section is deemed to be | ||||||
8 | necessary for the public interest, safety, and welfare. | ||||||
9 | This Section is repealed one year after the effective date | ||||||
10 | of this amendatory Act of the 103rd General Assembly. | ||||||
11 | Section 95-10. The Illinois Income Tax Act is amended by | ||||||
12 | adding Section 234 as follows: | ||||||
13 | (35 ILCS 5/234 new) | ||||||
14 | Sec. 234. Volunteer emergency workers. | ||||||
15 | (a) For taxable years beginning on or after January 1, | ||||||
16 | 2023 and beginning prior to January 1, 2028, each individual | ||||||
17 | who (i) serves as a volunteer emergency worker for at least 9 | ||||||
18 | months during the taxable year and (ii) does not receive | ||||||
19 | compensation for his or her services as a volunteer emergency | ||||||
20 | worker of more than $5,000 for the taxable year may apply to | ||||||
21 | the Department for a credit against the taxes imposed by | ||||||
22 | subsections (a) and (b) of Section 201. The amount of the | ||||||
23 | credit shall be $500 per eligible individual. The aggregate | ||||||
24 | amount of all tax credits
awarded by the Department under this |
| |||||||
| |||||||
1 | Section in any calendar year
may not exceed $5,000,000. | ||||||
2 | Credits shall be awarded on a first-come first-served basis. | ||||||
3 | (b) A credit under this Section may not reduce a | ||||||
4 | taxpayer's liability to less than zero. | ||||||
5 | (c) By January 24 of each year, the Office of the State | ||||||
6 | Fire Marshal shall provide the Department of Revenue an | ||||||
7 | electronic file with the names of volunteer emergency workers | ||||||
8 | who (i) volunteered for at least 9 months during the | ||||||
9 | immediately preceding calendar year, (ii) did not receive | ||||||
10 | compensation for their services as a volunteer emergency | ||||||
11 | worker of more than $5,000 during the immediately preceding | ||||||
12 | calendar year, and (iii) are registered with the Office of the | ||||||
13 | State Fire Marshal as of January 12 of the current year as | ||||||
14 | meeting the requirements of items (i) and (ii) for the | ||||||
15 | immediately preceding calendar year. The chief of the fire | ||||||
16 | department, fire protection district, or fire protection | ||||||
17 | association shall be responsible for notifying the State Fire | ||||||
18 | Marshal of the volunteer emergency workers who met the | ||||||
19 | requirements of items (i) and (ii) during the immediately | ||||||
20 | preceding calendar year by January 12 of the current year. | ||||||
21 | Notification shall be required in the format required by the | ||||||
22 | State Fire Marshal. The chief of the fire department, fire | ||||||
23 | protection district, or fire protection association shall be | ||||||
24 | responsible for the verification and accuracy of their | ||||||
25 | submission to the State Fire Marshal under this subsection. | ||||||
26 | (d) As used in this Section, "volunteer emergency worker" |
| |||||||
| |||||||
1 | means a person who serves as a member, other than on a | ||||||
2 | full-time career basis, of a fire department, fire protection | ||||||
3 | district, or fire protection association that has a Fire | ||||||
4 | Department Identification Number issued by the Office of the | ||||||
5 | State Fire Marshal and who does not serve as a member on a | ||||||
6 | full-time career basis for another fire department, fire | ||||||
7 | protection district, fire protection association, or | ||||||
8 | governmental entity. | ||||||
9 | (e) The Department shall adopt rules to implement and | ||||||
10 | administer this Section, including rules concerning | ||||||
11 | applications for the tax credit. | ||||||
12 | ARTICLE 100. USE AND OCCUPATION TAX ASSESSMENTS | ||||||
13 | Section 100-5. The Retailers' Occupation Tax Act is | ||||||
14 | amended by changing Section 4 as follows:
| ||||||
15 | (35 ILCS 120/4) (from Ch. 120, par. 443)
| ||||||
16 | Sec. 4.
As soon as practicable after any return is filed, | ||||||
17 | the Department
shall examine such return and shall, if | ||||||
18 | necessary, correct such return
according to its best judgment | ||||||
19 | and information. If the correction
of a return results in an | ||||||
20 | amount of tax that is understated on the taxpayer's
return due | ||||||
21 | to a mathematical error, the Department shall notify the | ||||||
22 | taxpayer
that the amount of tax in excess of that shown on the | ||||||
23 | return is due and has
been assessed.
The term "mathematical |
| |||||||
| |||||||
1 | error" means
arithmetic errors or incorrect computations on | ||||||
2 | the return or supporting
schedules.
No such notice of | ||||||
3 | additional tax due shall be issued on and
after each July 1 and | ||||||
4 | January 1 covering gross receipts received during any
month or | ||||||
5 | period of time more than 3 years prior to such July 1 and | ||||||
6 | January 1,
respectively. Such notice of additional tax due | ||||||
7 | shall not be considered a
notice of tax liability nor shall the | ||||||
8 | taxpayer have any right of protest.
In the event that the | ||||||
9 | return is corrected for any reason other than
a mathematical | ||||||
10 | error, any return so corrected
by the Department shall be | ||||||
11 | prima facie correct and shall be prima facie
evidence of the | ||||||
12 | correctness of the amount of tax due, as shown therein. In
| ||||||
13 | correcting transaction by transaction reporting returns | ||||||
14 | provided for in
Section 3 of this Act, it shall be permissible | ||||||
15 | for the Department to show
a single corrected return figure | ||||||
16 | for any given period of a calendar month
instead of having to | ||||||
17 | correct each transaction by transaction return form
| ||||||
18 | individually and having to show a corrected return figure for | ||||||
19 | each of such
transaction by transaction return forms. In | ||||||
20 | making a correction of
transaction by transaction, monthly or | ||||||
21 | quarterly returns covering a period
of 6 months or more, it | ||||||
22 | shall be permissible for the Department to show a
single | ||||||
23 | corrected return figure for any given 6-month period.
| ||||||
24 | Instead of requiring the person filing such return to file | ||||||
25 | an amended
return, the Department may simply notify him of the | ||||||
26 | correction or
corrections it has made.
|
| |||||||
| |||||||
1 | Proof of such correction by the Department may be made at | ||||||
2 | any hearing
before the Department or the Illinois Independent | ||||||
3 | Tax Tribunal or in any legal proceeding by a reproduced copy or
| ||||||
4 | computer print-out of the Department's record relating thereto | ||||||
5 | in the name
of the Department under the certificate of the | ||||||
6 | Director of Revenue. If
reproduced copies of the Department's | ||||||
7 | records are offered as proof of such
correction, the Director | ||||||
8 | must certify that those copies are true and exact
copies of | ||||||
9 | records on file with the Department. If computer print-outs of
| ||||||
10 | the Department's records are offered as proof of such | ||||||
11 | correction, the
Director must certify that those computer | ||||||
12 | print-outs are true and exact
representations of records | ||||||
13 | properly entered into standard electronic
computing equipment, | ||||||
14 | in the regular course of the Department's business, at
or | ||||||
15 | reasonably near the time of the occurrence of the facts | ||||||
16 | recorded, from
trustworthy and reliable information. Such | ||||||
17 | certified reproduced copy or
certified computer print-out | ||||||
18 | shall without further proof, be admitted into
evidence before | ||||||
19 | the Department or in any legal proceeding and shall be
prima | ||||||
20 | facie proof of the correctness of the amount of tax due, as | ||||||
21 | shown therein.
| ||||||
22 | If the tax computed upon the basis of the gross receipts as | ||||||
23 | fixed by the
Department is greater than the amount of tax due | ||||||
24 | under the return or
returns as filed, the Department shall (or | ||||||
25 | if the tax or any part thereof
that is admitted to be due by a | ||||||
26 | return or returns, whether filed on time or
not, is not paid, |
| |||||||
| |||||||
1 | the Department may) issue the taxpayer a notice of tax
| ||||||
2 | liability for the amount of tax claimed by the Department to be | ||||||
3 | due,
together with a penalty in an amount determined in | ||||||
4 | accordance with
Section 3-3 of the Uniform Penalty and | ||||||
5 | Interest Act. Provided, that if the
incorrectness of any | ||||||
6 | return or returns as determined by the Department is
due to | ||||||
7 | negligence or fraud, said penalty shall be in an amount | ||||||
8 | determined
in accordance with Section 3-5 or Section 3-6 of | ||||||
9 | the Uniform Penalty and
Interest Act, as the case may be. If | ||||||
10 | the notice of tax liability is not
based on a correction of the | ||||||
11 | taxpayer's return or returns, but is based on
the taxpayer's | ||||||
12 | failure to pay all or a part of the tax admitted by his
return | ||||||
13 | or returns (whether filed on time or not) to be due, such | ||||||
14 | notice of
tax liability shall be prima facie correct and shall | ||||||
15 | be prima facie
evidence of the correctness of the amount of tax | ||||||
16 | due, as shown therein.
| ||||||
17 | Proof of such notice of tax liability by the Department | ||||||
18 | may be made at
any hearing before the Department or the | ||||||
19 | Illinois Independent Tax Tribunal or in any legal proceeding | ||||||
20 | by a
reproduced copy of the Department's record relating | ||||||
21 | thereto in the name of
the Department under the certificate of | ||||||
22 | the Director of Revenue. Such
reproduced copy shall without | ||||||
23 | further proof, be admitted into evidence
before the Department | ||||||
24 | or in any legal proceeding and shall be prima facie
proof of | ||||||
25 | the correctness of the amount of tax due, as shown therein.
| ||||||
26 | If the person filing any return dies or becomes a person |
| |||||||
| |||||||
1 | under legal
disability at any time before the Department | ||||||
2 | issues its notice of tax
liability, such notice shall be | ||||||
3 | issued to the administrator, executor or
other legal | ||||||
4 | representative, as such, of such person.
| ||||||
5 | Except in case of a fraudulent return, or in the case of an | ||||||
6 | amended return
(where a notice of tax liability may be issued | ||||||
7 | on or after each January
1 and July 1 for an amended return | ||||||
8 | filed not more than 3 years prior to
such January 1 or July 1, | ||||||
9 | respectively), no notice of tax
liability shall be issued on | ||||||
10 | and after each January 1 and July 1 covering
gross receipts | ||||||
11 | received during any month or period of time more than 3
years | ||||||
12 | prior to such January 1 and July 1, respectively. If, before | ||||||
13 | the
expiration of the time prescribed in this Section for the | ||||||
14 | issuance of a
notice of tax liability, both the Department and | ||||||
15 | the taxpayer have
consented in writing to its issuance after | ||||||
16 | such time, such notice may be
issued at any time prior to the | ||||||
17 | expiration of the period agreed upon. The
period so agreed | ||||||
18 | upon may be extended by subsequent agreements in writing
made | ||||||
19 | before the expiration of the period previously agreed upon. | ||||||
20 | The foregoing
limitations upon the issuance of a notice of tax | ||||||
21 | liability shall not apply
to the issuance of a notice of tax | ||||||
22 | liability with respect to any period of
time prior thereto in | ||||||
23 | cases where the Department has, within the period of
| ||||||
24 | limitation then provided, notified the person making the | ||||||
25 | return of a notice
of tax liability even though such return, | ||||||
26 | with which the tax that was shown
by such return to be due was |
| |||||||
| |||||||
1 | paid when the return was filed, had not been
corrected by the | ||||||
2 | Department in the manner required herein prior to the
issuance | ||||||
3 | of such notice, but in no case shall the amount of any such | ||||||
4 | notice
of tax liability for any period otherwise barred by | ||||||
5 | this Act exceed for
such period the amount shown in the notice | ||||||
6 | of tax liability theretofore issued.
| ||||||
7 | If, when a tax or penalty under this Act becomes due and | ||||||
8 | payable, the
person alleged to be liable therefor is out of the | ||||||
9 | State, the notice of tax
liability may be issued within the | ||||||
10 | times herein limited after his coming
into or return to the | ||||||
11 | State; and if, after the tax or penalty under this
Act becomes | ||||||
12 | due and payable, the person alleged to be liable therefor
| ||||||
13 | departs from and remains out of the State, the time of his or | ||||||
14 | her absence is no
part of the time limited for the issuance of | ||||||
15 | the notice of tax liability;
but the foregoing provisions | ||||||
16 | concerning absence from the State shall not
apply to any case | ||||||
17 | in which, at the time when a tax or penalty becomes due
under | ||||||
18 | this Act, the person allegedly liable therefor is not a | ||||||
19 | resident of
this State.
| ||||||
20 | The time limitation period on the Department's right to | ||||||
21 | issue a notice
of tax liability shall not run during any period | ||||||
22 | of time in which the Order
of any Court has the effect of | ||||||
23 | enjoining or restraining the Department from
issuing the | ||||||
24 | notice of tax liability.
| ||||||
25 | If such person or legal representative shall within 60 | ||||||
26 | days after such
notice of tax liability file a protest to said |
| |||||||
| |||||||
1 | notice of tax liability with the Department and
request a | ||||||
2 | hearing thereon, the Department shall give notice to such | ||||||
3 | person
or legal representative of the time and place fixed for | ||||||
4 | such hearing and
shall hold a hearing in conformity with the | ||||||
5 | provisions of this Act, and
pursuant thereto shall issue to | ||||||
6 | such person or legal representative a final
assessment for the | ||||||
7 | amount found to be due as a result of such hearing. On or after | ||||||
8 | July 1, 2013, protests concerning matters that are subject to | ||||||
9 | the jurisdiction of the Illinois Independent Tax Tribunal | ||||||
10 | shall be filed with the Illinois Independent Tax Tribunal in | ||||||
11 | accordance with the Illinois Independent Tax Tribunal Act of | ||||||
12 | 2012, and hearings concerning those matters shall be held | ||||||
13 | before the Tribunal in accordance with that Act. The Tribunal | ||||||
14 | shall give notice to such
person of the time and place fixed | ||||||
15 | for such hearing and shall hold a
hearing. With respect to | ||||||
16 | protests filed with the Department prior to July 1, 2013 that | ||||||
17 | would otherwise be subject to the jurisdiction of the Illinois | ||||||
18 | Independent Tax Tribunal, the taxpayer may elect to be subject | ||||||
19 | to the provisions of the Illinois Independent Tax Tribunal Act | ||||||
20 | of 2012 at any time on or after July 1, 2013, but not later | ||||||
21 | than 30 days after the date on which the protest was filed. If | ||||||
22 | made, the election shall be irrevocable.
| ||||||
23 | If a protest to the notice of tax liability and a request | ||||||
24 | for a hearing
thereon is not filed within 60 days after such | ||||||
25 | notice, such notice of tax
liability shall become final | ||||||
26 | without the necessity of a final assessment
being issued and |
| |||||||
| |||||||
1 | shall be deemed to be a final assessment.
| ||||||
2 | Notwithstanding any other provisions of this Act, any | ||||||
3 | amount paid as tax or in respect of tax paid under this Act, | ||||||
4 | other than amounts paid as quarter-monthly payments, shall be | ||||||
5 | deemed assessed upon the date of receipt of payment. | ||||||
6 | After the issuance of a final assessment, or a notice of | ||||||
7 | tax liability
which becomes final without the necessity of | ||||||
8 | actually issuing a final
assessment as hereinbefore provided, | ||||||
9 | the Department, at any time before
such assessment is reduced | ||||||
10 | to judgment, may (subject to rules of the
Department) grant a | ||||||
11 | rehearing (or grant departmental review and hold an
original | ||||||
12 | hearing if no previous hearing in the matter has been held) | ||||||
13 | upon
the application of the person aggrieved. Pursuant to such | ||||||
14 | hearing or
rehearing, the Department shall issue a revised | ||||||
15 | final assessment to such
person or his legal representative | ||||||
16 | for the amount found to be due as a
result of such hearing or | ||||||
17 | rehearing.
| ||||||
18 | (Source: P.A. 97-1129, eff. 8-28-12.)
| ||||||
19 | Section 100-10. The Cigarette Machine Operators' | ||||||
20 | Occupation Tax Act is amended by changing Section 1-45 as | ||||||
21 | follows: | ||||||
22 | (35 ILCS 128/1-45)
| ||||||
23 | Sec. 1-45. Examination and correction of returns. | ||||||
24 | (a) As soon as practicable after any return is filed, the |
| |||||||
| |||||||
1 | Department shall examine that return and shall correct the | ||||||
2 | return according to its best judgment and information, which | ||||||
3 | return so corrected by the Department shall be prima facie | ||||||
4 | correct and shall be prima facie evidence of the correctness | ||||||
5 | of the amount of tax due, as shown on the corrected return. | ||||||
6 | Instead of requiring the cigarette machine operator to file an | ||||||
7 | amended return, the Department may simply notify the cigarette | ||||||
8 | machine operator of the correction or corrections it has made. | ||||||
9 | Proof of the correction by the Department may be made at any | ||||||
10 | hearing before the Department or in any legal proceeding by a | ||||||
11 | reproduced copy of the Department's record relating thereto in | ||||||
12 | the name of the Department under the certificate of the | ||||||
13 | Director of Revenue. Such reproduced copy shall, without | ||||||
14 | further proof, be admitted into evidence before the Department | ||||||
15 | or in any legal proceeding and shall be prima facie proof of | ||||||
16 | the correctness of the amount of tax due, as shown on the | ||||||
17 | reproduced copy. If the Department finds that any amount of | ||||||
18 | tax is due from the cigarette machine operator, the Department | ||||||
19 | shall issue the cigarette machine operator a notice of tax | ||||||
20 | liability for the amount of tax claimed by the Department to be | ||||||
21 | due, together with a penalty in an amount determined in | ||||||
22 | accordance with Sections 3-3, 3-5 and 3-6 of the Uniform | ||||||
23 | Penalty and Interest Act. If, in administering the provisions | ||||||
24 | of this Act, comparison of a return or returns of a cigarette | ||||||
25 | machine operator with the books, records, and inventories of | ||||||
26 | such cigarette machine operator discloses a deficiency that |
| |||||||
| |||||||
1 | cannot be allocated by the Department to a particular month or | ||||||
2 | months, the Department shall issue the cigarette machine | ||||||
3 | operator a notice of tax liability for the amount of tax | ||||||
4 | claimed by the Department to be due for a given period, but | ||||||
5 | without any obligation upon the Department to allocate that | ||||||
6 | deficiency to any particular month or months, together with a | ||||||
7 | penalty in an amount determined in accordance with Sections | ||||||
8 | 3-3, 3-5, and 3-6 of the Uniform Penalty and Interest Act, | ||||||
9 | under which circumstances the aforesaid notice of tax | ||||||
10 | liability shall be prima facie correct and shall be prima | ||||||
11 | facie evidence of the correctness of the amount of tax due, as | ||||||
12 | shown therein; and proof of such correctness may be made in | ||||||
13 | accordance with, and the admissibility of a reproduced copy of | ||||||
14 | such notice of tax liability shall be governed by, all the | ||||||
15 | provisions of this Act applicable to corrected returns. If any | ||||||
16 | cigarette machine operator filing any return dies or becomes a | ||||||
17 | person under legal disability at any time before the | ||||||
18 | Department issues its notice of tax liability, such notice | ||||||
19 | shall be issued to the administrator, executor, or other legal | ||||||
20 | representative of the cigarette machine operator. | ||||||
21 | (b) If, within 60 days after such notice of tax liability, | ||||||
22 | the cigarette machine operator or his or her legal | ||||||
23 | representative files a written protest to such notice of tax | ||||||
24 | liability and requests a hearing thereon, the Department shall | ||||||
25 | give notice to such cigarette machine operator or legal | ||||||
26 | representative of the time and place fixed for such hearing, |
| |||||||
| |||||||
1 | and shall hold a hearing in conformity with the provisions of | ||||||
2 | this Act, and pursuant thereto shall issue a final assessment | ||||||
3 | to such cigarette machine operator or legal representative for | ||||||
4 | the amount found to be due as a result of such hearing. If a | ||||||
5 | written protest to the notice of tax liability and a request | ||||||
6 | for a hearing thereon is not filed within 60 days after such | ||||||
7 | notice of tax liability, such notice of tax liability shall | ||||||
8 | become final without the necessity of a final assessment being | ||||||
9 | issued and shall be deemed to be a final assessment. | ||||||
10 | (c) In case of failure to pay the tax, or any portion | ||||||
11 | thereof, or any penalty provided for in this Act, when due, the | ||||||
12 | Department may bring suit to recover the amount of such tax, or | ||||||
13 | portion thereof, or penalty; or, if the taxpayer dies or | ||||||
14 | becomes incompetent, by filing claim therefore against his or | ||||||
15 | her estate; provided that no such action with respect to any | ||||||
16 | tax, or portion thereof, or penalty, shall be instituted more | ||||||
17 | than 2 years after the cause of action accrues, except with the | ||||||
18 | consent of the person from whom such tax or penalty is due. | ||||||
19 | After the expiration of the period within which the person | ||||||
20 | assessed may file an action for judicial review under the | ||||||
21 | Administrative Review Law without such an action being filed, | ||||||
22 | a certified copy of the final assessment or revised final | ||||||
23 | assessment of the Department may be filed with the circuit | ||||||
24 | court of the county in which the taxpayer has his or her | ||||||
25 | principal place of business, or of Sangamon County in those | ||||||
26 | cases in which the taxpayer does not have his or her principal |
| |||||||
| |||||||
1 | place of business in this State. The certified copy of the | ||||||
2 | final assessment or revised final assessment shall be | ||||||
3 | accompanied by a certification which recites facts that are | ||||||
4 | sufficient to show that the Department complied with the | ||||||
5 | jurisdictional requirements of the law in arriving at its | ||||||
6 | final assessment or its revised final assessment and that the | ||||||
7 | taxpayer had his or her opportunity for an administrative | ||||||
8 | hearing and for judicial review, whether he or she availed | ||||||
9 | himself or herself of either or both of these opportunities or | ||||||
10 | not. If the court is satisfied that the Department complied | ||||||
11 | with the jurisdictional requirements of the law in arriving at | ||||||
12 | its final assessment or its revised final assessment and that | ||||||
13 | the taxpayer had his or her opportunity for an administrative | ||||||
14 | hearing and for judicial review, whether he or she availed | ||||||
15 | himself or herself of either or both of these opportunities or | ||||||
16 | not, the court shall enter judgment in favor of the Department | ||||||
17 | and against the taxpayer for the amount shown to be due by the | ||||||
18 | final assessment or the revised final assessment, and such | ||||||
19 | judgment shall be filed of record in the court. Such judgment | ||||||
20 | shall bear the rate of interest set in the Uniform Penalty and | ||||||
21 | Interest Act, but otherwise shall have the same effect as | ||||||
22 | other judgments. The judgment may be enforced, and all laws | ||||||
23 | applicable to sales for the enforcement of a judgment shall be | ||||||
24 | applicable to sales made under such judgments. The Department | ||||||
25 | shall file the certified copy of its assessment, as herein | ||||||
26 | provided, with the circuit court within 2 years after such |
| |||||||
| |||||||
1 | assessment becomes final except when the taxpayer consents in | ||||||
2 | writing to an extension of such filing period. | ||||||
3 | If, when the cause of action for a proceeding in court | ||||||
4 | accrues against a person, he or she is out of the State, the | ||||||
5 | action may be commenced within the times herein limited, after | ||||||
6 | his or her coming into or returning to the State; and if, after | ||||||
7 | the cause of action accrues, he or she departs from and remains | ||||||
8 | out of the State, the time of his or her absence is no part of | ||||||
9 | the time limited for the commencement of the action; but the | ||||||
10 | foregoing provisions concerning absence from the State shall | ||||||
11 | not apply to any case in which, at the time the cause of action | ||||||
12 | accrues, the party against whom the cause of action accrues is | ||||||
13 | not a resident of this State. The time within which a court | ||||||
14 | action is to be commenced by the Department hereunder shall | ||||||
15 | not run while the taxpayer is a debtor in any proceeding under | ||||||
16 | the federal Bankruptcy Code nor thereafter until 90 days after | ||||||
17 | the Department is notified by such debtor of being discharged | ||||||
18 | in bankruptcy. | ||||||
19 | No claim shall be filed against the estate of any deceased | ||||||
20 | person or a person under legal disability for any tax or | ||||||
21 | penalty or part of either except in the manner prescribed and | ||||||
22 | within the time limited by the Probate Act of 1975. | ||||||
23 | The remedies provided for herein shall not be exclusive, | ||||||
24 | but all remedies available to creditors for the collection of | ||||||
25 | debts shall be available for the collection of any tax or | ||||||
26 | penalty due hereunder. |
| |||||||
| |||||||
1 | The collection of tax or penalty by any means provided for | ||||||
2 | herein shall not be a bar to any prosecution under this Act. | ||||||
3 | The certificate of the Director of the Department to the | ||||||
4 | effect that a tax or amount required to be paid by this Act has | ||||||
5 | not been paid, that a return has not been filed, or that | ||||||
6 | information has not been supplied pursuant to the provisions | ||||||
7 | of this Act, shall be prima facie evidence thereof. | ||||||
8 | Notwithstanding any other provisions of this Act, any | ||||||
9 | amount paid as tax or in respect of tax paid under this Act | ||||||
10 | shall be deemed assessed upon the date of receipt of payment. | ||||||
11 | All of the provisions of Sections 5a, 5b, 5c, 5d, 5e, 5f, | ||||||
12 | 5g, 5i and 5j of the Retailers' Occupation Tax Act, which are | ||||||
13 | not inconsistent with this Act, shall apply, as far as | ||||||
14 | practicable, to the subject matter of this Act to the same | ||||||
15 | extent as if such provisions were included herein. References | ||||||
16 | in such incorporated Sections of the Retailers' Occupation Tax | ||||||
17 | Act to retailers, to sellers, or to persons engaged in the | ||||||
18 | business of selling tangible personal property shall mean | ||||||
19 | cigarette machine operator when used in this Act.
| ||||||
20 | (Source: P.A. 97-688, eff. 6-14-12.) | ||||||
21 | Section 100-15. The Cigarette Tax Act is amended by | ||||||
22 | changing Section 9a as follows:
| ||||||
23 | (35 ILCS 130/9a) (from Ch. 120, par. 453.9a)
| ||||||
24 | Sec. 9a. Examination and correction of returns.
|
| |||||||
| |||||||
1 | (1) As soon as practicable after any return is filed, the
| ||||||
2 | Department shall examine such return and shall correct such | ||||||
3 | return
according to its best judgment and information, which | ||||||
4 | return so corrected
by the Department shall be prima facie | ||||||
5 | correct and shall be prima facie
evidence of the correctness | ||||||
6 | of the amount of tax due, as shown therein.
Instead of | ||||||
7 | requiring the distributor to file an amended return, the
| ||||||
8 | Department may simply notify the distributor of the correction | ||||||
9 | or
corrections it has made. Proof of such correction by the | ||||||
10 | Department may be
made at any hearing before the Department or | ||||||
11 | in any legal proceeding by a
reproduced copy of the | ||||||
12 | Department's record relating thereto in the name of
the | ||||||
13 | Department under the certificate of the Director of Revenue. | ||||||
14 | Such
reproduced copy shall, without further proof, be admitted | ||||||
15 | into evidence
before the Department or in any legal proceeding | ||||||
16 | and shall be prima facie
proof of the correctness of the amount | ||||||
17 | of tax due, as shown therein. If the
Department finds that any | ||||||
18 | amount of tax is due from the distributor, the
Department | ||||||
19 | shall issue the distributor a notice of tax liability for the
| ||||||
20 | amount of tax claimed by the Department to be due, together | ||||||
21 | with a penalty
in an amount determined in accordance with | ||||||
22 | Sections 3-3, 3-5 and 3-6 of the
Uniform Penalty and Interest | ||||||
23 | Act. If, in administering the provisions of
this Act, | ||||||
24 | comparison of a return or returns of a distributor with the
| ||||||
25 | books, records and inventories of such distributor discloses a | ||||||
26 | deficiency
which cannot be allocated by the Department to a |
| |||||||
| |||||||
1 | particular month or
months, the Department shall issue the | ||||||
2 | distributor a notice of tax
liability for the amount of tax | ||||||
3 | claimed by the Department to be due for a
given period, but | ||||||
4 | without any obligation upon the Department to allocate
such | ||||||
5 | deficiency to any particular month or months, together with a | ||||||
6 | penalty
in an amount determined in accordance with Sections | ||||||
7 | 3-3, 3-5 and 3-6 of the
Uniform Penalty and Interest Act, under | ||||||
8 | which circumstances the aforesaid
notice of tax liability | ||||||
9 | shall be prima facie correct and shall be prima
facie evidence | ||||||
10 | of the correctness of the amount of tax due, as shown
therein; | ||||||
11 | and proof of such correctness may be made in accordance with, | ||||||
12 | and
the admissibility of a reproduced copy of such notice of | ||||||
13 | tax liability
shall be governed by, all the provisions of this | ||||||
14 | Act applicable to
corrected returns. If any distributor filing | ||||||
15 | any return dies or becomes a
person under legal disability at | ||||||
16 | any time before the Department issues its
notice of tax | ||||||
17 | liability, such notice shall be issued to the administrator,
| ||||||
18 | executor or other legal representative, as such, of such | ||||||
19 | distributor.
| ||||||
20 | (2) Except as otherwise provided in this Section, if, | ||||||
21 | within 60 days after such notice of tax liability, the
| ||||||
22 | distributor or his or her legal representative files a protest | ||||||
23 | to such
notice of tax liability and requests a hearing | ||||||
24 | thereon, the Department shall
give notice to such distributor | ||||||
25 | or legal representative of the time and place
fixed for such | ||||||
26 | hearing, and shall hold a hearing in conformity with the
|
| |||||||
| |||||||
1 | provisions of this Act, and pursuant thereto shall issue a | ||||||
2 | final assessment
to such distributor or legal representative | ||||||
3 | for the amount found to be due
as a result of such hearing. On | ||||||
4 | or after July 1, 2013, protests concerning matters that are | ||||||
5 | subject to the jurisdiction of the Illinois Independent Tax | ||||||
6 | Tribunal shall be filed in accordance with the Illinois | ||||||
7 | Independent Tax Tribunal Act of 2012, and hearings concerning | ||||||
8 | those matters shall be held before the Tribunal in accordance | ||||||
9 | with that Act. With respect to protests filed with the | ||||||
10 | Department prior to July 1, 2013 that would otherwise be | ||||||
11 | subject to the jurisdiction of the Illinois Independent Tax | ||||||
12 | Tribunal, the taxpayer may elect to be subject to the | ||||||
13 | provisions of the Illinois Independent Tax Tribunal Act of | ||||||
14 | 2012 at any time on or after July 1, 2013, but not later than | ||||||
15 | 30 days after the date on which the protest was filed. If made, | ||||||
16 | the election shall be irrevocable. If a protest to the notice | ||||||
17 | of tax liability
and a request for a hearing thereon is not | ||||||
18 | filed within the time allowed by law, such notice of tax | ||||||
19 | liability shall become final
without the necessity of a final | ||||||
20 | assessment being issued and shall be
deemed to be a final | ||||||
21 | assessment.
| ||||||
22 | (3) In case of failure to pay the tax, or any portion | ||||||
23 | thereof, or any
penalty provided for in this Act, when due, the | ||||||
24 | Department may bring suit
to recover the amount of such tax, or | ||||||
25 | portion thereof, or penalty; or, if
the taxpayer dies or | ||||||
26 | becomes incompetent, by filing claim therefor against
his |
| |||||||
| |||||||
1 | estate; provided that no such action with respect to any tax, | ||||||
2 | or portion
thereof, or penalty, shall be instituted more than | ||||||
3 | 2 years after the cause
of action accrues, except with the | ||||||
4 | consent of the person from whom such tax
or penalty is due.
| ||||||
5 | After the expiration of the period within which the person | ||||||
6 | assessed may
file an action for judicial review under the | ||||||
7 | Administrative Review Law
without such an action being filed, | ||||||
8 | a certified copy of the final assessment
or revised final | ||||||
9 | assessment of the Department may be filed with the Circuit
| ||||||
10 | Court of the county in which the taxpayer has his or her | ||||||
11 | principal place of
business, or of Sangamon County in those | ||||||
12 | cases in which the taxpayer does
not have his principal place | ||||||
13 | of business in this State. The certified copy
of the final | ||||||
14 | assessment or revised final assessment shall be accompanied by
| ||||||
15 | a certification which recites facts that are sufficient to | ||||||
16 | show that the
Department complied with the jurisdictional | ||||||
17 | requirements of the Law in
arriving at its final assessment or | ||||||
18 | its revised final assessment and that
the taxpayer had his or | ||||||
19 | her opportunity for an administrative hearing and for
judicial | ||||||
20 | review, whether he availed himself or herself of either or | ||||||
21 | both of
these opportunities or not. If the court is satisfied | ||||||
22 | that the Department
complied with the jurisdictional | ||||||
23 | requirements of the Law in arriving at its
final assessment or | ||||||
24 | its revised final assessment and that the taxpayer had
his or | ||||||
25 | her opportunity for an administrative hearing and for judicial | ||||||
26 | review,
whether he or she availed himself or herself of either |
| |||||||
| |||||||
1 | or both of
these opportunities or not, the court shall enter | ||||||
2 | judgment in favor of the
Department and against the taxpayer | ||||||
3 | for the amount shown to be due by the
final assessment or the | ||||||
4 | revised final assessment, and such judgment shall
be filed of | ||||||
5 | record in the court. Such judgment shall bear the rate of
| ||||||
6 | interest set in the Uniform Penalty and Interest Act, but | ||||||
7 | otherwise shall
have the same effect as other judgments. The | ||||||
8 | judgment may be enforced, and
all laws applicable to sales for | ||||||
9 | the enforcement of a judgment shall be
applicable to sales | ||||||
10 | made under such judgments. The Department shall file
the | ||||||
11 | certified copy of its assessment, as herein provided, with the | ||||||
12 | Circuit
Court within 2 years after such assessment becomes | ||||||
13 | final except when the
taxpayer consents in writing to an | ||||||
14 | extension of such filing period.
| ||||||
15 | If, when the cause of action for a proceeding in court | ||||||
16 | accrues against a
person, he or she is out of the State, the | ||||||
17 | action may be commenced within the
times herein limited, after | ||||||
18 | his or her coming into or return to the State;
and if, after | ||||||
19 | the cause of action accrues, he or she departs from and
remains | ||||||
20 | out of the State, the time of his or her absence is no part of | ||||||
21 | the
time limited for the commencement of the action; but the | ||||||
22 | foregoing
provisions concerning absence from the State shall | ||||||
23 | not apply to any case in
which, at the time the cause of action | ||||||
24 | accrues, the party against whom the
cause of action accrues is | ||||||
25 | not a resident of this State. The time within
which a court | ||||||
26 | action is to be commenced by the Department hereunder shall
|
| |||||||
| |||||||
1 | not run while the taxpayer is a debtor in any proceeding under | ||||||
2 | the Federal
Bankruptcy Act nor thereafter until 90 days after | ||||||
3 | the Department is
notified by such debtor of being discharged | ||||||
4 | in bankruptcy.
| ||||||
5 | No claim shall be filed against the estate of any deceased | ||||||
6 | person or
a person under legal disability for any tax or | ||||||
7 | penalty or part of either
except in the manner prescribed and | ||||||
8 | within the time limited by the Probate
Act of 1975, as amended.
| ||||||
9 | The remedies provided for herein shall not be exclusive, | ||||||
10 | but all
remedies available to creditors for the collection of | ||||||
11 | debts shall be
available for the collection of any tax or | ||||||
12 | penalty due hereunder.
| ||||||
13 | The collection of tax or penalty by any means provided for | ||||||
14 | herein shall
not be a bar to any prosecution under this Act.
| ||||||
15 | The certificate of the Director of the Department to the | ||||||
16 | effect that a
tax or amount required to be paid by this Act has | ||||||
17 | not been paid, that a
return has not been filed, or that | ||||||
18 | information has not been supplied
pursuant to the provisions | ||||||
19 | of this Act, shall be prima facie evidence
thereof.
| ||||||
20 | Notwithstanding any other provisions of this Act, any | ||||||
21 | amount paid as tax or in respect of tax paid under this Act | ||||||
22 | shall be deemed assessed upon the date of receipt of payment. | ||||||
23 | All of the provisions of Sections 5a, 5b, 5c, 5d, 5e, 5f, | ||||||
24 | 5g, 5i and
5j of the Retailers' Occupation Tax Act, which are | ||||||
25 | not inconsistent
with this Act, and Section 3-7 of the Uniform | ||||||
26 | Penalty and Interest Act
shall apply, as far as practicable, |
| |||||||
| |||||||
1 | to the subject matter of
this Act to the same extent as if such | ||||||
2 | provisions were included herein.
References in such | ||||||
3 | incorporated Sections of the "Retailers' Occupation Tax
Act" | ||||||
4 | to retailers, to sellers or to persons engaged in the business | ||||||
5 | of
selling tangible personal property shall mean distributors | ||||||
6 | when used in
this Act.
| ||||||
7 | (Source: P.A. 97-1129, eff. 8-28-12; 98-463, eff. 8-16-13.)
| ||||||
8 | Section 100-20. The Cigarette Use Tax Act is amended by | ||||||
9 | changing Section 13 as follows:
| ||||||
10 | (35 ILCS 135/13) (from Ch. 120, par. 453.43)
| ||||||
11 | Sec. 13. Examination and correction of return. As soon as | ||||||
12 | practicable
after any return is filed, the Department
shall | ||||||
13 | examine such return and shall correct such return according to | ||||||
14 | its
best judgment and information, which return so corrected | ||||||
15 | by the Department
shall be prima facie correct and shall be | ||||||
16 | prima facie evidence of the
correctness of the amount of tax | ||||||
17 | due, as shown therein. Proof of such
correction by the | ||||||
18 | Department may be made at any hearing before the
Department or | ||||||
19 | in any legal proceeding by a reproduced copy of the
| ||||||
20 | Department's record relating thereto in the name of the | ||||||
21 | Department under
the certificate of the Director of Revenue. | ||||||
22 | Such reproduced copy shall,
without further proof, be admitted | ||||||
23 | into evidence before the Department or
in any legal proceeding | ||||||
24 | and shall be prima facie proof of the correctness
of the amount |
| |||||||
| |||||||
1 | of tax due, as shown therein. If the tax as fixed by the
| ||||||
2 | Department is greater than the amount of the tax due under the | ||||||
3 | return as
filed, the Department shall issue the person filing | ||||||
4 | such return a notice of
tax liability for the amount of tax | ||||||
5 | claimed by the Department to be due,
together with a penalty in | ||||||
6 | an amount determined in accordance with
Sections 3-3, 3-5 and | ||||||
7 | 3-6 of the Uniform Penalty and Interest Act. If,
in | ||||||
8 | administering the provisions of this Act,
comparison of a | ||||||
9 | return or returns of a distributor with the books, records
and | ||||||
10 | inventories of such distributor discloses a deficiency which | ||||||
11 | cannot be
allocated by the Department to a particular month or | ||||||
12 | months, the Department
shall issue the distributor a notice of | ||||||
13 | tax liability for the amount of tax
claimed by the Department | ||||||
14 | to be due for a given period, but without any
obligation upon | ||||||
15 | the Department to allocate such deficiency to any
particular | ||||||
16 | month or months, together with a penalty in an amount
| ||||||
17 | determined in accordance with Sections 3-3, 3-5 and 3-6 of the | ||||||
18 | Uniform
Penalty and Interest Act, under which circumstances | ||||||
19 | the aforesaid notice of
tax liability shall be prima facie | ||||||
20 | correct and shall be prima facie
evidence of the correctness | ||||||
21 | of the amount of tax due, as shown therein; and
proof of such | ||||||
22 | correctness may be made in accordance with, and the
| ||||||
23 | admissibility of a reproduced copy of such notice of tax | ||||||
24 | liability shall be
governed by, all the provisions of this Act | ||||||
25 | applicable to corrected returns.
| ||||||
26 | If any person filing any return dies or becomes a person |
| |||||||
| |||||||
1 | under legal
disability at any time before the Department | ||||||
2 | issues its notice of tax
liability, such notice shall be | ||||||
3 | issued to the administrator, executor or
other legal | ||||||
4 | representative, as such, of such person.
| ||||||
5 | Except as otherwise provided in this Section, if within 60 | ||||||
6 | days after such notice of tax liability, the person
to whom
| ||||||
7 | such notice is issued or his legal representative files a | ||||||
8 | protest to such
notice of tax liability and requests a hearing | ||||||
9 | thereon, the Department
shall give notice to such person or | ||||||
10 | legal representative of the time and
place fixed for such | ||||||
11 | hearing, and shall hold a hearing in conformity with
the | ||||||
12 | provisions of this Act, and pursuant thereto shall issue a | ||||||
13 | final
assessment to such person or legal representative for | ||||||
14 | the amount found to
be due as a result of such hearing. | ||||||
15 | Effective July 1, 2013, protests concerning matters that are | ||||||
16 | subject to the jurisdiction of the Illinois Independent Tax | ||||||
17 | Tribunal shall be filed with the Tribunal in accordance with | ||||||
18 | the Illinois Independent Tax Tribunal Act of 2012, and | ||||||
19 | hearings concerning those matters shall be held before the | ||||||
20 | Tribunal in accordance with that Act. With respect to protests | ||||||
21 | filed with the Department prior to July 1, 2013 that would | ||||||
22 | otherwise be subject to the jurisdiction of the Illinois | ||||||
23 | Independent Tax Tribunal, the person filing the protest may | ||||||
24 | elect to be subject to the provisions of the Illinois | ||||||
25 | Independent Tax Tribunal Act of 2012 at any time on or after | ||||||
26 | July 1, 2013, but not later than 30 days after the date on |
| |||||||
| |||||||
1 | which the protest was filed. If made, the election shall be | ||||||
2 | irrevocable. If a protest to the notice of tax
liability and a | ||||||
3 | request for a hearing thereon is not filed within the time | ||||||
4 | allowed by law, such notice of tax liability shall
become | ||||||
5 | final without the necessity of a final assessment being issued | ||||||
6 | and
shall be deemed to be a final assessment.
| ||||||
7 | Notwithstanding any other provisions of this Act, any | ||||||
8 | amount paid as tax or in respect of tax paid under this Act | ||||||
9 | shall be deemed assessed upon the date of receipt of payment. | ||||||
10 | (Source: P.A. 97-1129, eff. 8-28-12.)
| ||||||
11 | Section 100-25. The Liquor Control Act of 1934 is amended | ||||||
12 | by changing Section 8-5 as follows:
| ||||||
13 | (235 ILCS 5/8-5) (from Ch. 43, par. 163a)
| ||||||
14 | Sec. 8-5.
As soon as practicable after any return is | ||||||
15 | filed, the Department
shall examine such return or amended | ||||||
16 | return and shall correct such return according to its
best | ||||||
17 | judgment and information, which return so corrected by the | ||||||
18 | Department
shall be prima facie correct and shall be prima | ||||||
19 | facie evidence of the
correctness of the amount of tax due, as | ||||||
20 | shown therein. Instead of
requiring the licensee to file an | ||||||
21 | amended return, the Department may simply
notify the licensee | ||||||
22 | of the correction or corrections it has made. Proof of
such | ||||||
23 | correction by the Department, or of the determination of the | ||||||
24 | amount of
tax due as provided in Sections 8-4 and 8-10, may be |
| |||||||
| |||||||
1 | made at
any hearing before the Department or in any legal | ||||||
2 | proceeding by a
reproduced copy of the Department's record | ||||||
3 | relating thereto in the name of
the Department under the | ||||||
4 | certificate of the Director of Revenue. Such
reproduced copy | ||||||
5 | shall, without further proof, be admitted into evidence
before | ||||||
6 | the Department or in any legal proceeding and shall be prima | ||||||
7 | facie
proof of the correctness of the amount of tax due, as | ||||||
8 | shown therein. If the
return so corrected by the Department | ||||||
9 | discloses the sale or use, by a
licensed manufacturer or | ||||||
10 | importing distributor, of alcoholic liquors as to
which the | ||||||
11 | tax provided for in this Article should have been paid, but has
| ||||||
12 | not been paid, in excess of the alcoholic liquors reported as | ||||||
13 | being taxable
by the licensee, and as to which the proper tax | ||||||
14 | was paid the Department
shall notify the licensee that it | ||||||
15 | shall issue the taxpayer a notice of tax
liability for the | ||||||
16 | amount of tax claimed by the Department to be due,
together | ||||||
17 | with penalties at the rates prescribed by Sections 3-3, 3-5 | ||||||
18 | and
3-6 of the Uniform Penalty and Interest Act, which amount | ||||||
19 | of tax shall be
equivalent to the amount of tax which, at the | ||||||
20 | prescribed rate per gallon,
should have been paid with respect | ||||||
21 | to the alcoholic liquors disposed of in
excess of those | ||||||
22 | reported as being taxable. No earlier than 90 days after the | ||||||
23 | due date of the return, the Department may compare filed | ||||||
24 | returns, or any amendments thereto, against reports of sales | ||||||
25 | of alcoholic liquor submitted to the Department by other | ||||||
26 | manufacturers and distributors. If a return or amended return |
| |||||||
| |||||||
1 | is corrected by the Department because the return or amended | ||||||
2 | return failed to disclose the purchase of alcoholic liquor | ||||||
3 | from manufacturers or distributors on which the tax provided | ||||||
4 | for in this Article should have been paid, but has not been | ||||||
5 | paid, the Department shall issue the taxpayer a notice of tax | ||||||
6 | liability for the amount of tax claimed by the Department to be | ||||||
7 | due, together with penalties at the rates prescribed by | ||||||
8 | Sections 3-3, 3-5, and 3-6 of the Uniform Penalty and Interest | ||||||
9 | Act. In a case where no return has
been filed, the Department | ||||||
10 | shall determine the amount of tax due according
to its best | ||||||
11 | judgment and information and shall issue the taxpayer a notice
| ||||||
12 | of tax liability for the amount of tax claimed by the | ||||||
13 | Department to be due
as herein provided together with | ||||||
14 | penalties at the rates prescribed by
Sections 3-3, 3-5 and 3-6 | ||||||
15 | of the Uniform Penalty and Interest Act. If, in
administering | ||||||
16 | the provisions of this Act, a comparison of a licensee's
| ||||||
17 | return or returns with the books, records and physical | ||||||
18 | inventories of such
licensee discloses a deficiency which | ||||||
19 | cannot be allocated by the Department
to a particular month or | ||||||
20 | months, the Department shall issue the taxpayer a
notice of | ||||||
21 | tax liability for the amount of tax claimed by the Department | ||||||
22 | to
be due for a given period, but without any obligation upon | ||||||
23 | the Department
to allocate such deficiency to any particular | ||||||
24 | month or months, together
with penalties at the rates | ||||||
25 | prescribed by Sections 3-3, 3-5 and 3-6 of the
Uniform Penalty | ||||||
26 | and Interest Act, which amount of tax shall be equivalent to
|
| |||||||
| |||||||
1 | the amount of tax which, at the prescribed rate per gallon, | ||||||
2 | should have
been paid with respect to the alcoholic liquors | ||||||
3 | disposed of in excess of
those reported being taxable, with | ||||||
4 | the tax thereon having been paid under
which circumstances the | ||||||
5 | aforesaid notice of tax liability shall be prima
facie correct | ||||||
6 | and shall be prima facie evidence of the correctness of the
| ||||||
7 | amount of tax due as shown therein; and proof of such | ||||||
8 | correctness may be
made in accordance with, and the | ||||||
9 | admissibility of a reproduced copy of such
notice of the | ||||||
10 | Department's notice of tax liability shall be governed by,
all | ||||||
11 | the provisions of this Act applicable to corrected returns.
| ||||||
12 | If the licensee dies or becomes a person under legal | ||||||
13 | disability
at any time before the Department issues its notice | ||||||
14 | of tax liability, such
notice shall be issued to the | ||||||
15 | administrator, executor or other legal
representative, as | ||||||
16 | such, of the deceased or licensee who is under legal
| ||||||
17 | disability.
| ||||||
18 | If such licensee or legal representative, within 60 days | ||||||
19 | after such
notice of tax liability, files a protest to such | ||||||
20 | notice of tax liability
and requests a hearing thereon, the | ||||||
21 | Department shall give at least 7 days'
notice to such licensee | ||||||
22 | or legal representative, as the case may be, of the
time and | ||||||
23 | place fixed for such hearing and shall hold a hearing in
| ||||||
24 | conformity with the provisions of this Act, and pursuant | ||||||
25 | thereto shall
issue a final assessment to such licensee or | ||||||
26 | legal representative for the
amount found to be due as a result |
| |||||||
| |||||||
1 | of such hearing.
| ||||||
2 | If a protest to the notice of tax liability and a request | ||||||
3 | for a hearing
thereon is not filed within 60 days after such | ||||||
4 | notice of tax liability,
such notice of tax liability shall | ||||||
5 | become final without the necessity of a
final assessment being | ||||||
6 | issued and shall be deemed to be a final assessment.
| ||||||
7 | Notwithstanding any other provisions of this Act, any | ||||||
8 | amount paid as tax or in respect of tax paid under this Act | ||||||
9 | shall be deemed assessed upon the date of receipt of payment. | ||||||
10 | In case of failure to pay the tax, or any portion thereof, | ||||||
11 | or any
penalty provided for herein, when due, the Department | ||||||
12 | may recover the
amount of such tax, or portion thereof, or | ||||||
13 | penalty in a civil action; or if
the licensee dies or becomes a | ||||||
14 | person under legal disability, by filing a
claim therefor | ||||||
15 | against his or her estate; provided that no such claim shall
be | ||||||
16 | filed against the estate of any deceased or of the licensee who | ||||||
17 | is under
legal disability for any tax or penalty or portion | ||||||
18 | thereof except in the
manner prescribed and within the time | ||||||
19 | limited by the Probate Act of 1975,
as amended.
| ||||||
20 | The collection of any such tax and penalty, or either, by | ||||||
21 | any means
provided for herein, shall not be a bar to any | ||||||
22 | prosecution under this Act.
| ||||||
23 | In addition to any other penalty provided for in this | ||||||
24 | Article, all provisions of the Uniform Penalty and Interest | ||||||
25 | Act that are not inconsistent with this Act apply.
| ||||||
26 | (Source: P.A. 100-1050, eff. 7-1-19; 101-16, eff. 6-14-19.)
|
| |||||||
| |||||||
1 | ARTICLE 110. PARTNERSHIPS | ||||||
2 | Section 5. The Illinois Income Tax Act is amended by | ||||||
3 | changing Section 201 as follows:
| ||||||
4 | (35 ILCS 5/201)
| ||||||
5 | Sec. 201. Tax imposed. | ||||||
6 | (a) In general. A tax measured by net income is hereby | ||||||
7 | imposed on every
individual, corporation, trust and estate for | ||||||
8 | each taxable year ending
after July 31, 1969 on the privilege | ||||||
9 | of earning or receiving income in or
as a resident of this | ||||||
10 | State. Such tax shall be in addition to all other
occupation or | ||||||
11 | privilege taxes imposed by this State or by any municipal
| ||||||
12 | corporation or political subdivision thereof. | ||||||
13 | (b) Rates. The tax imposed by subsection (a) of this | ||||||
14 | Section shall be
determined as follows, except as adjusted by | ||||||
15 | subsection (d-1): | ||||||
16 | (1) In the case of an individual, trust or estate, for | ||||||
17 | taxable years
ending prior to July 1, 1989, an amount | ||||||
18 | equal to 2 1/2% of the taxpayer's
net income for the | ||||||
19 | taxable year. | ||||||
20 | (2) In the case of an individual, trust or estate, for | ||||||
21 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
22 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
23 | 1/2% of the taxpayer's net income for the period
prior to |
| |||||||
| |||||||
1 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
2 | 3% of the
taxpayer's net income for the period after June | ||||||
3 | 30, 1989, as calculated
under Section 202.3. | ||||||
4 | (3) In the case of an individual, trust or estate, for | ||||||
5 | taxable years
beginning after June 30, 1989, and ending | ||||||
6 | prior to January 1, 2011, an amount equal to 3% of the | ||||||
7 | taxpayer's net
income for the taxable year. | ||||||
8 | (4) In the case of an individual, trust, or estate, | ||||||
9 | for taxable years beginning prior to January 1, 2011, and | ||||||
10 | ending after December 31, 2010, an amount equal to the sum | ||||||
11 | of (i) 3% of the taxpayer's net income for the period prior | ||||||
12 | to January 1, 2011, as calculated under Section 202.5, and | ||||||
13 | (ii) 5% of the taxpayer's net income for the period after | ||||||
14 | December 31, 2010, as calculated under Section 202.5. | ||||||
15 | (5) In the case of an individual, trust, or estate, | ||||||
16 | for taxable years beginning on or after January 1, 2011, | ||||||
17 | and ending prior to January 1, 2015, an amount equal to 5% | ||||||
18 | of the taxpayer's net income for the taxable year. | ||||||
19 | (5.1) In the case of an individual, trust, or estate, | ||||||
20 | for taxable years beginning prior to January 1, 2015, and | ||||||
21 | ending after December 31, 2014, an amount equal to the sum | ||||||
22 | of (i) 5% of the taxpayer's net income for the period prior | ||||||
23 | to January 1, 2015, as calculated under Section 202.5, and | ||||||
24 | (ii) 3.75% of the taxpayer's net income for the period | ||||||
25 | after December 31, 2014, as calculated under Section | ||||||
26 | 202.5. |
| |||||||
| |||||||
1 | (5.2) In the case of an individual, trust, or estate, | ||||||
2 | for taxable years beginning on or after January 1, 2015, | ||||||
3 | and ending prior to July 1, 2017, an amount equal to 3.75% | ||||||
4 | of the taxpayer's net income for the taxable year. | ||||||
5 | (5.3) In the case of an individual, trust, or estate, | ||||||
6 | for taxable years beginning prior to July 1, 2017, and | ||||||
7 | ending after June 30, 2017, an amount equal to the sum of | ||||||
8 | (i) 3.75% of the taxpayer's net income for the period | ||||||
9 | prior to July 1, 2017, as calculated under Section 202.5, | ||||||
10 | and (ii) 4.95% of the taxpayer's net income for the period | ||||||
11 | after June 30, 2017, as calculated under Section 202.5. | ||||||
12 | (5.4) In the case of an individual, trust, or estate, | ||||||
13 | for taxable years beginning on or after July 1, 2017, an | ||||||
14 | amount equal to 4.95% of the taxpayer's net income for the | ||||||
15 | taxable year. | ||||||
16 | (6) In the case of a corporation, for taxable years
| ||||||
17 | ending prior to July 1, 1989, an amount equal to 4% of the
| ||||||
18 | taxpayer's net income for the taxable year. | ||||||
19 | (7) In the case of a corporation, for taxable years | ||||||
20 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
21 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
22 | taxpayer's net income for the period prior to July 1, | ||||||
23 | 1989,
as calculated under Section 202.3, and (ii) 4.8% of | ||||||
24 | the taxpayer's net
income for the period after June 30, | ||||||
25 | 1989, as calculated under Section
202.3. | ||||||
26 | (8) In the case of a corporation, for taxable years |
| |||||||
| |||||||
1 | beginning after
June 30, 1989, and ending prior to January | ||||||
2 | 1, 2011, an amount equal to 4.8% of the taxpayer's net | ||||||
3 | income for the
taxable year. | ||||||
4 | (9) In the case of a corporation, for taxable years | ||||||
5 | beginning prior to January 1, 2011, and ending after | ||||||
6 | December 31, 2010, an amount equal to the sum of (i) 4.8% | ||||||
7 | of the taxpayer's net income for the period prior to | ||||||
8 | January 1, 2011, as calculated under Section 202.5, and | ||||||
9 | (ii) 7% of the taxpayer's net income for the period after | ||||||
10 | December 31, 2010, as calculated under Section 202.5. | ||||||
11 | (10) In the case of a corporation, for taxable years | ||||||
12 | beginning on or after January 1, 2011, and ending prior to | ||||||
13 | January 1, 2015, an amount equal to 7% of the taxpayer's | ||||||
14 | net income for the taxable year. | ||||||
15 | (11) In the case of a corporation, for taxable years | ||||||
16 | beginning prior to January 1, 2015, and ending after | ||||||
17 | December 31, 2014, an amount equal to the sum of (i) 7% of | ||||||
18 | the taxpayer's net income for the period prior to January | ||||||
19 | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% | ||||||
20 | of the taxpayer's net income for the period after December | ||||||
21 | 31, 2014, as calculated under Section 202.5. | ||||||
22 | (12) In the case of a corporation, for taxable years | ||||||
23 | beginning on or after January 1, 2015, and ending prior to | ||||||
24 | July 1, 2017, an amount equal to 5.25% of the taxpayer's | ||||||
25 | net income for the taxable year. | ||||||
26 | (13) In the case of a corporation, for taxable years |
| |||||||
| |||||||
1 | beginning prior to July 1, 2017, and ending after June 30, | ||||||
2 | 2017, an amount equal to the sum of (i) 5.25% of the | ||||||
3 | taxpayer's net income for the period prior to July 1, | ||||||
4 | 2017, as calculated under Section 202.5, and (ii) 7% of | ||||||
5 | the taxpayer's net income for the period after June 30, | ||||||
6 | 2017, as calculated under Section 202.5. | ||||||
7 | (14) In the case of a corporation, for taxable years | ||||||
8 | beginning on or after July 1, 2017, an amount equal to 7% | ||||||
9 | of the taxpayer's net income for the taxable year. | ||||||
10 | The rates under this subsection (b) are subject to the | ||||||
11 | provisions of Section 201.5. | ||||||
12 | (b-5) Surcharge; sale or exchange of assets, properties, | ||||||
13 | and intangibles of organization gaming licensees. For each of | ||||||
14 | taxable years 2019 through 2027, a surcharge is imposed on all | ||||||
15 | taxpayers on income arising from the sale or exchange of | ||||||
16 | capital assets, depreciable business property, real property | ||||||
17 | used in the trade or business, and Section 197 intangibles (i) | ||||||
18 | of an organization licensee under the Illinois Horse Racing | ||||||
19 | Act of 1975 and (ii) of an organization gaming licensee under | ||||||
20 | the Illinois Gambling Act. The amount of the surcharge is | ||||||
21 | equal to the amount of federal income tax liability for the | ||||||
22 | taxable year attributable to those sales and exchanges. The | ||||||
23 | surcharge imposed shall not apply if: | ||||||
24 | (1) the organization gaming license, organization | ||||||
25 | license, or racetrack property is transferred as a result | ||||||
26 | of any of the following: |
| |||||||
| |||||||
1 | (A) bankruptcy, a receivership, or a debt | ||||||
2 | adjustment initiated by or against the initial | ||||||
3 | licensee or the substantial owners of the initial | ||||||
4 | licensee; | ||||||
5 | (B) cancellation, revocation, or termination of | ||||||
6 | any such license by the Illinois Gaming Board or the | ||||||
7 | Illinois Racing Board; | ||||||
8 | (C) a determination by the Illinois Gaming Board | ||||||
9 | that transfer of the license is in the best interests | ||||||
10 | of Illinois gaming; | ||||||
11 | (D) the death of an owner of the equity interest in | ||||||
12 | a licensee; | ||||||
13 | (E) the acquisition of a controlling interest in | ||||||
14 | the stock or substantially all of the assets of a | ||||||
15 | publicly traded company; | ||||||
16 | (F) a transfer by a parent company to a wholly | ||||||
17 | owned subsidiary; or | ||||||
18 | (G) the transfer or sale to or by one person to | ||||||
19 | another person where both persons were initial owners | ||||||
20 | of the license when the license was issued; or | ||||||
21 | (2) the controlling interest in the organization | ||||||
22 | gaming license, organization license, or racetrack | ||||||
23 | property is transferred in a transaction to lineal | ||||||
24 | descendants in which no gain or loss is recognized or as a | ||||||
25 | result of a transaction in accordance with Section 351 of | ||||||
26 | the Internal Revenue Code in which no gain or loss is |
| |||||||
| |||||||
1 | recognized; or | ||||||
2 | (3) live horse racing was not conducted in 2010 at a | ||||||
3 | racetrack located within 3 miles of the Mississippi River | ||||||
4 | under a license issued pursuant to the Illinois Horse | ||||||
5 | Racing Act of 1975. | ||||||
6 | The transfer of an organization gaming license, | ||||||
7 | organization license, or racetrack property by a person other | ||||||
8 | than the initial licensee to receive the organization gaming | ||||||
9 | license is not subject to a surcharge. The Department shall | ||||||
10 | adopt rules necessary to implement and administer this | ||||||
11 | subsection. | ||||||
12 | (c) Personal Property Tax Replacement Income Tax.
| ||||||
13 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
14 | income
tax, there is also hereby imposed the Personal Property | ||||||
15 | Tax Replacement
Income Tax measured by net income on every | ||||||
16 | corporation (including Subchapter
S corporations), partnership | ||||||
17 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
18 | Such taxes are imposed on the privilege of earning or
| ||||||
19 | receiving income in or as a resident of this State. The | ||||||
20 | Personal Property
Tax Replacement Income Tax shall be in | ||||||
21 | addition to the income tax imposed
by subsections (a) and (b) | ||||||
22 | of this Section and in addition to all other
occupation or | ||||||
23 | privilege taxes imposed by this State or by any municipal
| ||||||
24 | corporation or political subdivision thereof. | ||||||
25 | (d) Additional Personal Property Tax Replacement Income | ||||||
26 | Tax Rates.
The personal property tax replacement income tax |
| |||||||
| |||||||
1 | imposed by this subsection
and subsection (c) of this Section | ||||||
2 | in the case of a corporation, other
than a Subchapter S | ||||||
3 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
4 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
5 | income for the taxable year, except that
beginning on January | ||||||
6 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
7 | subsection shall be reduced to 2.5%, and in the case of a
| ||||||
8 | partnership, trust or a Subchapter S corporation shall be an | ||||||
9 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
10 | for the taxable year. | ||||||
11 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
12 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
13 | Illinois Insurance Code,
whose state or country of domicile | ||||||
14 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
15 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
16 | are 50% or more of its total insurance
premiums as determined | ||||||
17 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
18 | that for purposes of this determination premiums from | ||||||
19 | reinsurance do
not include premiums from inter-affiliate | ||||||
20 | reinsurance arrangements),
beginning with taxable years ending | ||||||
21 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
22 | imposed by subsections (b) and (d) shall be reduced (but not
| ||||||
23 | increased) to the rate at which the total amount of tax imposed | ||||||
24 | under this Act,
net of all credits allowed under this Act, | ||||||
25 | shall equal (i) the total amount of
tax that would be imposed | ||||||
26 | on the foreign insurer's net income allocable to
Illinois for |
| |||||||
| |||||||
1 | the taxable year by such foreign insurer's state or country of
| ||||||
2 | domicile if that net income were subject to all income taxes | ||||||
3 | and taxes
measured by net income imposed by such foreign | ||||||
4 | insurer's state or country of
domicile, net of all credits | ||||||
5 | allowed or (ii) a rate of zero if no such tax is
imposed on | ||||||
6 | such income by the foreign insurer's state of domicile.
For | ||||||
7 | the purposes of this subsection (d-1), an inter-affiliate | ||||||
8 | includes a
mutual insurer under common management. | ||||||
9 | (1) For the purposes of subsection (d-1), in no event | ||||||
10 | shall the sum of the
rates of tax imposed by subsections | ||||||
11 | (b) and (d) be reduced below the rate at
which the sum of: | ||||||
12 | (A) the total amount of tax imposed on such | ||||||
13 | foreign insurer under
this Act for a taxable year, net | ||||||
14 | of all credits allowed under this Act, plus | ||||||
15 | (B) the privilege tax imposed by Section 409 of | ||||||
16 | the Illinois Insurance
Code, the fire insurance | ||||||
17 | company tax imposed by Section 12 of the Fire
| ||||||
18 | Investigation Act, and the fire department taxes | ||||||
19 | imposed under Section 11-10-1
of the Illinois | ||||||
20 | Municipal Code, | ||||||
21 | equals 1.25% for taxable years ending prior to December | ||||||
22 | 31, 2003, or
1.75% for taxable years ending on or after | ||||||
23 | December 31, 2003, of the net
taxable premiums written for | ||||||
24 | the taxable year,
as described by subsection (1) of | ||||||
25 | Section 409 of the Illinois Insurance Code.
This paragraph | ||||||
26 | will in no event increase the rates imposed under |
| |||||||
| |||||||
1 | subsections
(b) and (d). | ||||||
2 | (2) Any reduction in the rates of tax imposed by this | ||||||
3 | subsection shall be
applied first against the rates | ||||||
4 | imposed by subsection (b) and only after the
tax imposed | ||||||
5 | by subsection (a) net of all credits allowed under this | ||||||
6 | Section
other than the credit allowed under subsection (i) | ||||||
7 | has been reduced to zero,
against the rates imposed by | ||||||
8 | subsection (d). | ||||||
9 | This subsection (d-1) is exempt from the provisions of | ||||||
10 | Section 250. | ||||||
11 | (e) Investment credit. A taxpayer shall be allowed a | ||||||
12 | credit
against the Personal Property Tax Replacement Income | ||||||
13 | Tax for
investment in qualified property. | ||||||
14 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
15 | of
the basis of qualified property placed in service | ||||||
16 | during the taxable year,
provided such property is placed | ||||||
17 | in service on or after
July 1, 1984. There shall be allowed | ||||||
18 | an additional credit equal
to .5% of the basis of | ||||||
19 | qualified property placed in service during the
taxable | ||||||
20 | year, provided such property is placed in service on or
| ||||||
21 | after July 1, 1986, and the taxpayer's base employment
| ||||||
22 | within Illinois has increased by 1% or more over the | ||||||
23 | preceding year as
determined by the taxpayer's employment | ||||||
24 | records filed with the
Illinois Department of Employment | ||||||
25 | Security. Taxpayers who are new to
Illinois shall be | ||||||
26 | deemed to have met the 1% growth in base employment for
the |
| |||||||
| |||||||
1 | first year in which they file employment records with the | ||||||
2 | Illinois
Department of Employment Security. The provisions | ||||||
3 | added to this Section by
Public Act 85-1200 (and restored | ||||||
4 | by Public Act 87-895) shall be
construed as declaratory of | ||||||
5 | existing law and not as a new enactment. If,
in any year, | ||||||
6 | the increase in base employment within Illinois over the
| ||||||
7 | preceding year is less than 1%, the additional credit | ||||||
8 | shall be limited to that
percentage times a fraction, the | ||||||
9 | numerator of which is .5% and the denominator
of which is | ||||||
10 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
11 | not be
allowed to the extent that it would reduce a | ||||||
12 | taxpayer's liability in any tax
year below zero, nor may | ||||||
13 | any credit for qualified property be allowed for any
year | ||||||
14 | other than the year in which the property was placed in | ||||||
15 | service in
Illinois. For tax years ending on or after | ||||||
16 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
17 | credit shall be allowed for the tax year in
which the | ||||||
18 | property is placed in service, or, if the amount of the | ||||||
19 | credit
exceeds the tax liability for that year, whether it | ||||||
20 | exceeds the original
liability or the liability as later | ||||||
21 | amended, such excess may be carried
forward and applied to | ||||||
22 | the tax liability of the 5 taxable years following
the | ||||||
23 | excess credit years if the taxpayer (i) makes investments | ||||||
24 | which cause
the creation of a minimum of 2,000 full-time | ||||||
25 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
26 | enterprise zone established pursuant to the Illinois
|
| |||||||
| |||||||
1 | Enterprise Zone Act and (iii) is certified by the | ||||||
2 | Department of Commerce
and Community Affairs (now | ||||||
3 | Department of Commerce and Economic Opportunity) as | ||||||
4 | complying with the requirements specified in
clause (i) | ||||||
5 | and (ii) by July 1, 1986. The Department of Commerce and
| ||||||
6 | Community Affairs (now Department of Commerce and Economic | ||||||
7 | Opportunity) shall notify the Department of Revenue of all | ||||||
8 | such
certifications immediately. For tax years ending | ||||||
9 | after December 31, 1988,
the credit shall be allowed for | ||||||
10 | the tax year in which the property is
placed in service, | ||||||
11 | or, if the amount of the credit exceeds the tax
liability | ||||||
12 | for that year, whether it exceeds the original liability | ||||||
13 | or the
liability as later amended, such excess may be | ||||||
14 | carried forward and applied
to the tax liability of the 5 | ||||||
15 | taxable years following the excess credit
years. The | ||||||
16 | credit shall be applied to the earliest year for which | ||||||
17 | there is
a liability. If there is credit from more than one | ||||||
18 | tax year that is
available to offset a liability, earlier | ||||||
19 | credit shall be applied first. | ||||||
20 | (2) The term "qualified property" means property | ||||||
21 | which: | ||||||
22 | (A) is tangible, whether new or used, including | ||||||
23 | buildings and structural
components of buildings and | ||||||
24 | signs that are real property, but not including
land | ||||||
25 | or improvements to real property that are not a | ||||||
26 | structural component of a
building such as |
| |||||||
| |||||||
1 | landscaping, sewer lines, local access roads, fencing, | ||||||
2 | parking
lots, and other appurtenances; | ||||||
3 | (B) is depreciable pursuant to Section 167 of the | ||||||
4 | Internal Revenue Code,
except that "3-year property" | ||||||
5 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
6 | eligible for the credit provided by this subsection | ||||||
7 | (e); | ||||||
8 | (C) is acquired by purchase as defined in Section | ||||||
9 | 179(d) of
the Internal Revenue Code; | ||||||
10 | (D) is used in Illinois by a taxpayer who is | ||||||
11 | primarily engaged in
manufacturing, or in mining coal | ||||||
12 | or fluorite, or in retailing, or was placed in service | ||||||
13 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
14 | Zone established pursuant to the River Edge | ||||||
15 | Redevelopment Zone Act; and | ||||||
16 | (E) has not previously been used in Illinois in | ||||||
17 | such a manner and by
such a person as would qualify for | ||||||
18 | the credit provided by this subsection
(e) or | ||||||
19 | subsection (f). | ||||||
20 | (3) For purposes of this subsection (e), | ||||||
21 | "manufacturing" means
the material staging and production | ||||||
22 | of tangible personal property by
procedures commonly | ||||||
23 | regarded as manufacturing, processing, fabrication, or
| ||||||
24 | assembling which changes some existing material into new | ||||||
25 | shapes, new
qualities, or new combinations. For purposes | ||||||
26 | of this subsection
(e) the term "mining" shall have the |
| |||||||
| |||||||
1 | same meaning as the term "mining" in
Section 613(c) of the | ||||||
2 | Internal Revenue Code. For purposes of this subsection
| ||||||
3 | (e), the term "retailing" means the sale of tangible | ||||||
4 | personal property for use or consumption and not for | ||||||
5 | resale, or
services rendered in conjunction with the sale | ||||||
6 | of tangible personal property for use or consumption and | ||||||
7 | not for resale. For purposes of this subsection (e), | ||||||
8 | "tangible personal property" has the same meaning as when | ||||||
9 | that term is used in the Retailers' Occupation Tax Act, | ||||||
10 | and, for taxable years ending after December 31, 2008, | ||||||
11 | does not include the generation, transmission, or | ||||||
12 | distribution of electricity. | ||||||
13 | (4) The basis of qualified property shall be the basis
| ||||||
14 | used to compute the depreciation deduction for federal | ||||||
15 | income tax purposes. | ||||||
16 | (5) If the basis of the property for federal income | ||||||
17 | tax depreciation
purposes is increased after it has been | ||||||
18 | placed in service in Illinois by
the taxpayer, the amount | ||||||
19 | of such increase shall be deemed property placed
in | ||||||
20 | service on the date of such increase in basis. | ||||||
21 | (6) The term "placed in service" shall have the same
| ||||||
22 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
23 | (7) If during any taxable year, any property ceases to
| ||||||
24 | be qualified property in the hands of the taxpayer within | ||||||
25 | 48 months after
being placed in service, or the situs of | ||||||
26 | any qualified property is
moved outside Illinois within 48 |
| |||||||
| |||||||
1 | months after being placed in service, the
Personal | ||||||
2 | Property Tax Replacement Income Tax for such taxable year | ||||||
3 | shall be
increased. Such increase shall be determined by | ||||||
4 | (i) recomputing the
investment credit which would have | ||||||
5 | been allowed for the year in which
credit for such | ||||||
6 | property was originally allowed by eliminating such
| ||||||
7 | property from such computation and, (ii) subtracting such | ||||||
8 | recomputed credit
from the amount of credit previously | ||||||
9 | allowed. For the purposes of this
paragraph (7), a | ||||||
10 | reduction of the basis of qualified property resulting
| ||||||
11 | from a redetermination of the purchase price shall be | ||||||
12 | deemed a disposition
of qualified property to the extent | ||||||
13 | of such reduction. | ||||||
14 | (8) Unless the investment credit is extended by law, | ||||||
15 | the
basis of qualified property shall not include costs | ||||||
16 | incurred after
December 31, 2018, except for costs | ||||||
17 | incurred pursuant to a binding
contract entered into on or | ||||||
18 | before December 31, 2018. | ||||||
19 | (9) Each taxable year ending before December 31, 2000, | ||||||
20 | a partnership may
elect to pass through to its
partners | ||||||
21 | the credits to which the partnership is entitled under | ||||||
22 | this subsection
(e) for the taxable year. A partner may | ||||||
23 | use the credit allocated to him or her
under this | ||||||
24 | paragraph only against the tax imposed in subsections (c) | ||||||
25 | and (d) of
this Section. If the partnership makes that | ||||||
26 | election, those credits shall be
allocated among the |
| |||||||
| |||||||
1 | partners in the partnership in accordance with the rules
| ||||||
2 | set forth in Section 704(b) of the Internal Revenue Code, | ||||||
3 | and the rules
promulgated under that Section, and the | ||||||
4 | allocated amount of the credits shall
be allowed to the | ||||||
5 | partners for that taxable year. The partnership shall make
| ||||||
6 | this election on its Personal Property Tax Replacement | ||||||
7 | Income Tax return for
that taxable year. The election to | ||||||
8 | pass through the credits shall be
irrevocable. | ||||||
9 | For taxable years ending on or after December 31, | ||||||
10 | 2000, a
partner that qualifies its
partnership for a | ||||||
11 | subtraction under subparagraph (I) of paragraph (2) of
| ||||||
12 | subsection (d) of Section 203 or a shareholder that | ||||||
13 | qualifies a Subchapter S
corporation for a subtraction | ||||||
14 | under subparagraph (S) of paragraph (2) of
subsection (b) | ||||||
15 | of Section 203 shall be allowed a credit under this | ||||||
16 | subsection
(e) equal to its share of the credit earned | ||||||
17 | under this subsection (e) during
the taxable year by the | ||||||
18 | partnership or Subchapter S corporation, determined in
| ||||||
19 | accordance with the determination of income and | ||||||
20 | distributive share of
income under Sections 702 and 704 | ||||||
21 | and Subchapter S of the Internal Revenue
Code. This | ||||||
22 | paragraph is exempt from the provisions of Section 250. | ||||||
23 | (f) Investment credit; Enterprise Zone; River Edge | ||||||
24 | Redevelopment Zone. | ||||||
25 | (1) A taxpayer shall be allowed a credit against the | ||||||
26 | tax imposed
by subsections (a) and (b) of this Section for |
| |||||||
| |||||||
1 | investment in qualified
property which is placed in | ||||||
2 | service in an Enterprise Zone created
pursuant to the | ||||||
3 | Illinois Enterprise Zone Act or, for property placed in | ||||||
4 | service on or after July 1, 2006, a River Edge | ||||||
5 | Redevelopment Zone established pursuant to the River Edge | ||||||
6 | Redevelopment Zone Act. For partners, shareholders
of | ||||||
7 | Subchapter S corporations, and owners of limited liability | ||||||
8 | companies,
if the liability company is treated as a | ||||||
9 | partnership for purposes of
federal and State income | ||||||
10 | taxation, there shall be allowed a credit under
this | ||||||
11 | subsection (f) to be determined in accordance with the | ||||||
12 | determination
of income and distributive share of income | ||||||
13 | under Sections 702 and 704 and
Subchapter S of the | ||||||
14 | Internal Revenue Code. The credit shall be .5% of the
| ||||||
15 | basis for such property. The credit shall be available | ||||||
16 | only in the taxable
year in which the property is placed in | ||||||
17 | service in the Enterprise Zone or River Edge Redevelopment | ||||||
18 | Zone and
shall not be allowed to the extent that it would | ||||||
19 | reduce a taxpayer's
liability for the tax imposed by | ||||||
20 | subsections (a) and (b) of this Section to
below zero. For | ||||||
21 | tax years ending on or after December 31, 1985, the credit
| ||||||
22 | shall be allowed for the tax year in which the property is | ||||||
23 | placed in
service, or, if the amount of the credit exceeds | ||||||
24 | the tax liability for that
year, whether it exceeds the | ||||||
25 | original liability or the liability as later
amended, such | ||||||
26 | excess may be carried forward and applied to the tax
|
| |||||||
| |||||||
1 | liability of the 5 taxable years following the excess | ||||||
2 | credit year.
The credit shall be applied to the earliest | ||||||
3 | year for which there is a
liability. If there is credit | ||||||
4 | from more than one tax year that is available
to offset a | ||||||
5 | liability, the credit accruing first in time shall be | ||||||
6 | applied
first. | ||||||
7 | (2) The term qualified property means property which: | ||||||
8 | (A) is tangible, whether new or used, including | ||||||
9 | buildings and
structural components of buildings; | ||||||
10 | (B) is depreciable pursuant to Section 167 of the | ||||||
11 | Internal Revenue
Code, except that "3-year property" | ||||||
12 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
13 | eligible for the credit provided by this subsection | ||||||
14 | (f); | ||||||
15 | (C) is acquired by purchase as defined in Section | ||||||
16 | 179(d) of
the Internal Revenue Code; | ||||||
17 | (D) is used in the Enterprise Zone or River Edge | ||||||
18 | Redevelopment Zone by the taxpayer; and | ||||||
19 | (E) has not been previously used in Illinois in | ||||||
20 | such a manner and by
such a person as would qualify for | ||||||
21 | the credit provided by this subsection
(f) or | ||||||
22 | subsection (e). | ||||||
23 | (3) The basis of qualified property shall be the basis | ||||||
24 | used to compute
the depreciation deduction for federal | ||||||
25 | income tax purposes. | ||||||
26 | (4) If the basis of the property for federal income |
| |||||||
| |||||||
1 | tax depreciation
purposes is increased after it has been | ||||||
2 | placed in service in the Enterprise
Zone or River Edge | ||||||
3 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
4 | increase shall be deemed property
placed in service on the | ||||||
5 | date of such increase in basis. | ||||||
6 | (5) The term "placed in service" shall have the same | ||||||
7 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
8 | (6) If during any taxable year, any property ceases to | ||||||
9 | be qualified
property in the hands of the taxpayer within | ||||||
10 | 48 months after being placed
in service, or the situs of | ||||||
11 | any qualified property is moved outside the
Enterprise | ||||||
12 | Zone or River Edge Redevelopment Zone within 48 months | ||||||
13 | after being placed in service, the tax
imposed under | ||||||
14 | subsections (a) and (b) of this Section for such taxable | ||||||
15 | year
shall be increased. Such increase shall be determined | ||||||
16 | by (i) recomputing
the investment credit which would have | ||||||
17 | been allowed for the year in which
credit for such | ||||||
18 | property was originally allowed by eliminating such
| ||||||
19 | property from such computation, and (ii) subtracting such | ||||||
20 | recomputed credit
from the amount of credit previously | ||||||
21 | allowed. For the purposes of this
paragraph (6), a | ||||||
22 | reduction of the basis of qualified property resulting
| ||||||
23 | from a redetermination of the purchase price shall be | ||||||
24 | deemed a disposition
of qualified property to the extent | ||||||
25 | of such reduction. | ||||||
26 | (7) There shall be allowed an additional credit equal |
| |||||||
| |||||||
1 | to 0.5% of the basis of qualified property placed in | ||||||
2 | service during the taxable year in a River Edge | ||||||
3 | Redevelopment Zone, provided such property is placed in | ||||||
4 | service on or after July 1, 2006, and the taxpayer's base | ||||||
5 | employment within Illinois has increased by 1% or more | ||||||
6 | over the preceding year as determined by the taxpayer's | ||||||
7 | employment records filed with the Illinois Department of | ||||||
8 | Employment Security. Taxpayers who are new to Illinois | ||||||
9 | shall be deemed to have met the 1% growth in base | ||||||
10 | employment for the first year in which they file | ||||||
11 | employment records with the Illinois Department of | ||||||
12 | Employment Security. If, in any year, the increase in base | ||||||
13 | employment within Illinois over the preceding year is less | ||||||
14 | than 1%, the additional credit shall be limited to that | ||||||
15 | percentage times a fraction, the numerator of which is | ||||||
16 | 0.5% and the denominator of which is 1%, but shall not | ||||||
17 | exceed 0.5%.
| ||||||
18 | (8) For taxable years beginning on or after January 1, | ||||||
19 | 2021, there shall be allowed an Enterprise Zone | ||||||
20 | construction jobs credit against the taxes imposed under | ||||||
21 | subsections (a) and (b) of this Section as provided in | ||||||
22 | Section 13 of the Illinois Enterprise Zone Act. | ||||||
23 | The credit or credits may not reduce the taxpayer's | ||||||
24 | liability to less than zero. If the amount of the credit or | ||||||
25 | credits exceeds the taxpayer's liability, the excess may | ||||||
26 | be carried forward and applied against the taxpayer's |
| |||||||
| |||||||
1 | liability in succeeding calendar years in the same manner | ||||||
2 | provided under paragraph (4) of Section 211 of this Act. | ||||||
3 | The credit or credits shall be applied to the earliest | ||||||
4 | year for which there is a tax liability. If there are | ||||||
5 | credits from more than one taxable year that are available | ||||||
6 | to offset a liability, the earlier credit shall be applied | ||||||
7 | first. | ||||||
8 | For partners, shareholders of Subchapter S | ||||||
9 | corporations, and owners of limited liability companies, | ||||||
10 | if the liability company is treated as a partnership for | ||||||
11 | the purposes of federal and State income taxation, there | ||||||
12 | shall be allowed a credit under this Section to be | ||||||
13 | determined in accordance with the determination of income | ||||||
14 | and distributive share of income under Sections 702 and | ||||||
15 | 704 and Subchapter S of the Internal Revenue Code. | ||||||
16 | The total aggregate amount of credits awarded under | ||||||
17 | the Blue Collar Jobs Act (Article 20 of Public Act 101-9) | ||||||
18 | shall not exceed $20,000,000 in any State fiscal year. | ||||||
19 | This paragraph (8) is exempt from the provisions of | ||||||
20 | Section 250. | ||||||
21 | (g) (Blank). | ||||||
22 | (h) Investment credit; High Impact Business. | ||||||
23 | (1) Subject to subsections (b) and (b-5) of Section
| ||||||
24 | 5.5 of the Illinois Enterprise Zone Act, a taxpayer shall | ||||||
25 | be allowed a credit
against the tax imposed by subsections | ||||||
26 | (a) and (b) of this Section for
investment in qualified
|
| |||||||
| |||||||
1 | property which is placed in service by a Department of | ||||||
2 | Commerce and Economic Opportunity
designated High Impact | ||||||
3 | Business. The credit shall be .5% of the basis
for such | ||||||
4 | property. The credit shall not be available (i) until the | ||||||
5 | minimum
investments in qualified property set forth in | ||||||
6 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
7 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
8 | time authorized in subsection (b-5) of the Illinois
| ||||||
9 | Enterprise Zone Act for entities designated as High Impact | ||||||
10 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
11 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
12 | Act, and shall not be allowed to the extent that it would
| ||||||
13 | reduce a taxpayer's liability for the tax imposed by | ||||||
14 | subsections (a) and (b) of
this Section to below zero. The | ||||||
15 | credit applicable to such investments shall be
taken in | ||||||
16 | the taxable year in which such investments have been | ||||||
17 | completed. The
credit for additional investments beyond | ||||||
18 | the minimum investment by a designated
high impact | ||||||
19 | business authorized under subdivision (a)(3)(A) of Section | ||||||
20 | 5.5 of
the Illinois Enterprise Zone Act shall be available | ||||||
21 | only in the taxable year in
which the property is placed in | ||||||
22 | service and shall not be allowed to the extent
that it | ||||||
23 | would reduce a taxpayer's liability for the tax imposed by | ||||||
24 | subsections
(a) and (b) of this Section to below zero.
For | ||||||
25 | tax years ending on or after December 31, 1987, the credit | ||||||
26 | shall be
allowed for the tax year in which the property is |
| |||||||
| |||||||
1 | placed in service, or, if
the amount of the credit exceeds | ||||||
2 | the tax liability for that year, whether
it exceeds the | ||||||
3 | original liability or the liability as later amended, such
| ||||||
4 | excess may be carried forward and applied to the tax | ||||||
5 | liability of the 5
taxable years following the excess | ||||||
6 | credit year. The credit shall be
applied to the earliest | ||||||
7 | year for which there is a liability. If there is
credit | ||||||
8 | from more than one tax year that is available to offset a | ||||||
9 | liability,
the credit accruing first in time shall be | ||||||
10 | applied first. | ||||||
11 | Changes made in this subdivision (h)(1) by Public Act | ||||||
12 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
13 | reflect existing law. | ||||||
14 | (2) The term qualified property means property which: | ||||||
15 | (A) is tangible, whether new or used, including | ||||||
16 | buildings and
structural components of buildings; | ||||||
17 | (B) is depreciable pursuant to Section 167 of the | ||||||
18 | Internal Revenue
Code, except that "3-year property" | ||||||
19 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
20 | eligible for the credit provided by this subsection | ||||||
21 | (h); | ||||||
22 | (C) is acquired by purchase as defined in Section | ||||||
23 | 179(d) of the
Internal Revenue Code; and | ||||||
24 | (D) is not eligible for the Enterprise Zone | ||||||
25 | Investment Credit provided
by subsection (f) of this | ||||||
26 | Section. |
| |||||||
| |||||||
1 | (3) The basis of qualified property shall be the basis | ||||||
2 | used to compute
the depreciation deduction for federal | ||||||
3 | income tax purposes. | ||||||
4 | (4) If the basis of the property for federal income | ||||||
5 | tax depreciation
purposes is increased after it has been | ||||||
6 | placed in service in a federally
designated Foreign Trade | ||||||
7 | Zone or Sub-Zone located in Illinois by the taxpayer,
the | ||||||
8 | amount of such increase shall be deemed property placed in | ||||||
9 | service on
the date of such increase in basis. | ||||||
10 | (5) The term "placed in service" shall have the same | ||||||
11 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
12 | (6) If during any taxable year ending on or before | ||||||
13 | December 31, 1996,
any property ceases to be qualified
| ||||||
14 | property in the hands of the taxpayer within 48 months | ||||||
15 | after being placed
in service, or the situs of any | ||||||
16 | qualified property is moved outside
Illinois within 48 | ||||||
17 | months after being placed in service, the tax imposed
| ||||||
18 | under subsections (a) and (b) of this Section for such | ||||||
19 | taxable year shall
be increased. Such increase shall be | ||||||
20 | determined by (i) recomputing the
investment credit which | ||||||
21 | would have been allowed for the year in which
credit for | ||||||
22 | such property was originally allowed by eliminating such
| ||||||
23 | property from such computation, and (ii) subtracting such | ||||||
24 | recomputed credit
from the amount of credit previously | ||||||
25 | allowed. For the purposes of this
paragraph (6), a | ||||||
26 | reduction of the basis of qualified property resulting
|
| |||||||
| |||||||
1 | from a redetermination of the purchase price shall be | ||||||
2 | deemed a disposition
of qualified property to the extent | ||||||
3 | of such reduction. | ||||||
4 | (7) Beginning with tax years ending after December 31, | ||||||
5 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
6 | subsection (h) and thereby is
granted a tax abatement and | ||||||
7 | the taxpayer relocates its entire facility in
violation of | ||||||
8 | the explicit terms and length of the contract under | ||||||
9 | Section
18-183 of the Property Tax Code, the tax imposed | ||||||
10 | under subsections
(a) and (b) of this Section shall be | ||||||
11 | increased for the taxable year
in which the taxpayer | ||||||
12 | relocated its facility by an amount equal to the
amount of | ||||||
13 | credit received by the taxpayer under this subsection (h). | ||||||
14 | (h-5) High Impact Business construction jobs credit. For | ||||||
15 | taxable years beginning on or after January 1, 2021, there | ||||||
16 | shall also be allowed a High Impact Business construction jobs | ||||||
17 | credit against the tax imposed under subsections (a) and (b) | ||||||
18 | of this Section as provided in subsections (i) and (j) of | ||||||
19 | Section 5.5 of the Illinois Enterprise Zone Act. | ||||||
20 | The credit or credits may not reduce the taxpayer's | ||||||
21 | liability to less than zero. If the amount of the credit or | ||||||
22 | credits exceeds the taxpayer's liability, the excess may be | ||||||
23 | carried forward and applied against the taxpayer's liability | ||||||
24 | in succeeding calendar years in the manner provided under | ||||||
25 | paragraph (4) of Section 211 of this Act. The credit or credits | ||||||
26 | shall be applied to the earliest year for which there is a tax |
| |||||||
| |||||||
1 | liability. If there are credits from more than one taxable | ||||||
2 | year that are available to offset a liability, the earlier | ||||||
3 | credit shall be applied first. | ||||||
4 | For partners, shareholders of Subchapter S corporations, | ||||||
5 | and owners of limited liability companies, if the liability | ||||||
6 | company is treated as a partnership for the purposes of | ||||||
7 | federal and State income taxation, there shall be allowed a | ||||||
8 | credit under this Section to be determined in accordance with | ||||||
9 | the determination of income and distributive share of income | ||||||
10 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
11 | Revenue Code. | ||||||
12 | The total aggregate amount of credits awarded under the | ||||||
13 | Blue Collar Jobs Act (Article 20 of Public Act 101-9) shall not | ||||||
14 | exceed $20,000,000 in any State fiscal year. | ||||||
15 | This subsection (h-5) is exempt from the provisions of | ||||||
16 | Section 250. | ||||||
17 | (i) Credit for Personal Property Tax Replacement Income | ||||||
18 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
19 | shall be allowed
against the tax imposed by
subsections (a) | ||||||
20 | and (b) of this Section for the tax imposed by subsections (c)
| ||||||
21 | and (d) of this Section. This credit shall be computed by | ||||||
22 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
23 | Section by a fraction, the numerator
of which is base income | ||||||
24 | allocable to Illinois and the denominator of which is
Illinois | ||||||
25 | base income, and further multiplying the product by the tax | ||||||
26 | rate
imposed by subsections (a) and (b) of this Section. |
| |||||||
| |||||||
1 | Any credit earned on or after December 31, 1986 under
this | ||||||
2 | subsection which is unused in the year
the credit is computed | ||||||
3 | because it exceeds the tax liability imposed by
subsections | ||||||
4 | (a) and (b) for that year (whether it exceeds the original
| ||||||
5 | liability or the liability as later amended) may be carried | ||||||
6 | forward and
applied to the tax liability imposed by | ||||||
7 | subsections (a) and (b) of the 5
taxable years following the | ||||||
8 | excess credit year, provided that no credit may
be carried | ||||||
9 | forward to any year ending on or
after December 31, 2003. This | ||||||
10 | credit shall be
applied first to the earliest year for which | ||||||
11 | there is a liability. If
there is a credit under this | ||||||
12 | subsection from more than one tax year that is
available to | ||||||
13 | offset a liability the earliest credit arising under this
| ||||||
14 | subsection shall be applied first. | ||||||
15 | If, during any taxable year ending on or after December | ||||||
16 | 31, 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
17 | Section for which a taxpayer
has claimed a credit under this | ||||||
18 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
19 | shall also be reduced. Such reduction shall be
determined by | ||||||
20 | recomputing the credit to take into account the reduced tax
| ||||||
21 | imposed by subsections (c) and (d). If any portion of the
| ||||||
22 | reduced amount of credit has been carried to a different | ||||||
23 | taxable year, an
amended return shall be filed for such | ||||||
24 | taxable year to reduce the amount of
credit claimed. | ||||||
25 | (j) Training expense credit. Beginning with tax years | ||||||
26 | ending on or
after December 31, 1986 and prior to December 31, |
| |||||||
| |||||||
1 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
2 | imposed by subsections (a) and (b) under this Section
for all | ||||||
3 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
4 | the taxpayer in Illinois or Illinois residents employed
| ||||||
5 | outside of Illinois by a taxpayer, for educational or | ||||||
6 | vocational training in
semi-technical or technical fields or | ||||||
7 | semi-skilled or skilled fields, which
were deducted from gross | ||||||
8 | income in the computation of taxable income. The
credit | ||||||
9 | against the tax imposed by subsections (a) and (b) shall be | ||||||
10 | 1.6% of
such training expenses. For partners, shareholders of | ||||||
11 | subchapter S
corporations, and owners of limited liability | ||||||
12 | companies, if the liability
company is treated as a | ||||||
13 | partnership for purposes of federal and State income
taxation, | ||||||
14 | there shall be allowed a credit under this subsection (j) to be
| ||||||
15 | determined in accordance with the determination of income and | ||||||
16 | distributive
share of income under Sections 702 and 704 and | ||||||
17 | subchapter S of the Internal
Revenue Code. | ||||||
18 | Any credit allowed under this subsection which is unused | ||||||
19 | in the year
the credit is earned may be carried forward to each | ||||||
20 | of the 5 taxable
years following the year for which the credit | ||||||
21 | is first computed until it is
used. This credit shall be | ||||||
22 | applied first to the earliest year for which
there is a | ||||||
23 | liability. If there is a credit under this subsection from | ||||||
24 | more
than one tax year that is available to offset a liability, | ||||||
25 | the earliest
credit arising under this subsection shall be | ||||||
26 | applied first. No carryforward
credit may be claimed in any |
| |||||||
| |||||||
1 | tax year ending on or after
December 31, 2003. | ||||||
2 | (k) Research and development credit. For tax years ending | ||||||
3 | after July 1, 1990 and prior to
December 31, 2003, and | ||||||
4 | beginning again for tax years ending on or after December 31, | ||||||
5 | 2004, and ending prior to January 1, 2027, a taxpayer shall be
| ||||||
6 | allowed a credit against the tax imposed by subsections (a) | ||||||
7 | and (b) of this
Section for increasing research activities in | ||||||
8 | this State. The credit
allowed against the tax imposed by | ||||||
9 | subsections (a) and (b) shall be equal
to 6 1/2% of the | ||||||
10 | qualifying expenditures for increasing research activities
in | ||||||
11 | this State. For partners, shareholders of subchapter S | ||||||
12 | corporations, and
owners of limited liability companies, if | ||||||
13 | the liability company is treated as a
partnership for purposes | ||||||
14 | of federal and State income taxation, there shall be
allowed a | ||||||
15 | credit under this subsection to be determined in accordance | ||||||
16 | with the
determination of income and distributive share of | ||||||
17 | income under Sections 702 and
704 and subchapter S of the | ||||||
18 | Internal Revenue Code. | ||||||
19 | For purposes of this subsection, "qualifying expenditures" | ||||||
20 | means the
qualifying expenditures as defined for the federal | ||||||
21 | credit for increasing
research activities which would be | ||||||
22 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
23 | which are conducted in this State, "qualifying
expenditures | ||||||
24 | for increasing research activities in this State" means the
| ||||||
25 | excess of qualifying expenditures for the taxable year in | ||||||
26 | which incurred
over qualifying expenditures for the base |
| |||||||
| |||||||
1 | period, "qualifying expenditures
for the base period" means | ||||||
2 | the average of the qualifying expenditures for
each year in | ||||||
3 | the base period, and "base period" means the 3 taxable years
| ||||||
4 | immediately preceding the taxable year for which the | ||||||
5 | determination is
being made. | ||||||
6 | Any credit in excess of the tax liability for the taxable | ||||||
7 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
8 | unused credit shown on its final completed return carried over | ||||||
9 | as a credit
against the tax liability for the following 5 | ||||||
10 | taxable years or until it has
been fully used, whichever | ||||||
11 | occurs first; provided that no credit earned in a tax year | ||||||
12 | ending prior to December 31, 2003 may be carried forward to any | ||||||
13 | year ending on or after December 31, 2003. | ||||||
14 | If an unused credit is carried forward to a given year from | ||||||
15 | 2 or more
earlier years, that credit arising in the earliest | ||||||
16 | year will be applied
first against the tax liability for the | ||||||
17 | given year. If a tax liability for
the given year still | ||||||
18 | remains, the credit from the next earliest year will
then be | ||||||
19 | applied, and so on, until all credits have been used or no tax
| ||||||
20 | liability for the given year remains. Any remaining unused | ||||||
21 | credit or
credits then will be carried forward to the next | ||||||
22 | following year in which a
tax liability is incurred, except | ||||||
23 | that no credit can be carried forward to
a year which is more | ||||||
24 | than 5 years after the year in which the expense for
which the | ||||||
25 | credit is given was incurred. | ||||||
26 | No inference shall be drawn from Public Act 91-644 in |
| |||||||
| |||||||
1 | construing this Section for taxable years beginning before | ||||||
2 | January
1, 1999. | ||||||
3 | It is the intent of the General Assembly that the research | ||||||
4 | and development credit under this subsection (k) shall apply | ||||||
5 | continuously for all tax years ending on or after December 31, | ||||||
6 | 2004 and ending prior to January 1, 2027, including, but not | ||||||
7 | limited to, the period beginning on January 1, 2016 and ending | ||||||
8 | on July 6, 2017 (the effective date of Public Act 100-22). All | ||||||
9 | actions taken in reliance on the continuation of the credit | ||||||
10 | under this subsection (k) by any taxpayer are hereby | ||||||
11 | validated. | ||||||
12 | (l) Environmental Remediation Tax Credit. | ||||||
13 | (i) For tax years ending after December 31, 1997 and | ||||||
14 | on or before
December 31, 2001, a taxpayer shall be | ||||||
15 | allowed a credit against the tax
imposed by subsections | ||||||
16 | (a) and (b) of this Section for certain amounts paid
for | ||||||
17 | unreimbursed eligible remediation costs, as specified in | ||||||
18 | this subsection.
For purposes of this Section, | ||||||
19 | "unreimbursed eligible remediation costs" means
costs | ||||||
20 | approved by the Illinois Environmental Protection Agency | ||||||
21 | ("Agency") under
Section 58.14 of the Environmental | ||||||
22 | Protection Act that were paid in performing
environmental | ||||||
23 | remediation at a site for which a No Further Remediation | ||||||
24 | Letter
was issued by the Agency and recorded under Section | ||||||
25 | 58.10 of the Environmental
Protection Act. The credit must | ||||||
26 | be claimed for the taxable year in which
Agency approval |
| |||||||
| |||||||
1 | of the eligible remediation costs is granted. The credit | ||||||
2 | is
not available to any taxpayer if the taxpayer or any | ||||||
3 | related party caused or
contributed to, in any material | ||||||
4 | respect, a release of regulated substances on,
in, or | ||||||
5 | under the site that was identified and addressed by the | ||||||
6 | remedial
action pursuant to the Site Remediation Program | ||||||
7 | of the Environmental Protection
Act. After the Pollution | ||||||
8 | Control Board rules are adopted pursuant to the
Illinois | ||||||
9 | Administrative Procedure Act for the administration and | ||||||
10 | enforcement of
Section 58.9 of the Environmental | ||||||
11 | Protection Act, determinations as to credit
availability | ||||||
12 | for purposes of this Section shall be made consistent with | ||||||
13 | those
rules. For purposes of this Section, "taxpayer" | ||||||
14 | includes a person whose tax
attributes the taxpayer has | ||||||
15 | succeeded to under Section 381 of the Internal
Revenue | ||||||
16 | Code and "related party" includes the persons disallowed a | ||||||
17 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
18 | Section 267 of the Internal
Revenue Code by virtue of | ||||||
19 | being a related taxpayer, as well as any of its
partners. | ||||||
20 | The credit allowed against the tax imposed by subsections | ||||||
21 | (a) and
(b) shall be equal to 25% of the unreimbursed | ||||||
22 | eligible remediation costs in
excess of $100,000 per site, | ||||||
23 | except that the $100,000 threshold shall not apply
to any | ||||||
24 | site contained in an enterprise zone as determined by the | ||||||
25 | Department of
Commerce and Community Affairs (now | ||||||
26 | Department of Commerce and Economic Opportunity). The |
| |||||||
| |||||||
1 | total credit allowed shall not exceed
$40,000 per year | ||||||
2 | with a maximum total of $150,000 per site. For partners | ||||||
3 | and
shareholders of subchapter S corporations, there shall | ||||||
4 | be allowed a credit
under this subsection to be determined | ||||||
5 | in accordance with the determination of
income and | ||||||
6 | distributive share of income under Sections 702 and 704 | ||||||
7 | and
subchapter S of the Internal Revenue Code. | ||||||
8 | (ii) A credit allowed under this subsection that is | ||||||
9 | unused in the year
the credit is earned may be carried | ||||||
10 | forward to each of the 5 taxable years
following the year | ||||||
11 | for which the credit is first earned until it is used.
The | ||||||
12 | term "unused credit" does not include any amounts of | ||||||
13 | unreimbursed eligible
remediation costs in excess of the | ||||||
14 | maximum credit per site authorized under
paragraph (i). | ||||||
15 | This credit shall be applied first to the earliest year
| ||||||
16 | for which there is a liability. If there is a credit under | ||||||
17 | this subsection
from more than one tax year that is | ||||||
18 | available to offset a liability, the
earliest credit | ||||||
19 | arising under this subsection shall be applied first. A
| ||||||
20 | credit allowed under this subsection may be sold to a | ||||||
21 | buyer as part of a sale
of all or part of the remediation | ||||||
22 | site for which the credit was granted. The
purchaser of a | ||||||
23 | remediation site and the tax credit shall succeed to the | ||||||
24 | unused
credit and remaining carry-forward period of the | ||||||
25 | seller. To perfect the
transfer, the assignor shall record | ||||||
26 | the transfer in the chain of title for the
site and provide |
| |||||||
| |||||||
1 | written notice to the Director of the Illinois Department | ||||||
2 | of
Revenue of the assignor's intent to sell the | ||||||
3 | remediation site and the amount of
the tax credit to be | ||||||
4 | transferred as a portion of the sale. In no event may a
| ||||||
5 | credit be transferred to any taxpayer if the taxpayer or a | ||||||
6 | related party would
not be eligible under the provisions | ||||||
7 | of subsection (i). | ||||||
8 | (iii) For purposes of this Section, the term "site" | ||||||
9 | shall have the same
meaning as under Section 58.2 of the | ||||||
10 | Environmental Protection Act. | ||||||
11 | (m) Education expense credit. Beginning with tax years | ||||||
12 | ending after
December 31, 1999, a taxpayer who
is the | ||||||
13 | custodian of one or more qualifying pupils shall be allowed a | ||||||
14 | credit
against the tax imposed by subsections (a) and (b) of | ||||||
15 | this Section for
qualified education expenses incurred on | ||||||
16 | behalf of the qualifying pupils.
The credit shall be equal to | ||||||
17 | 25% of qualified education expenses, but in no
event may the | ||||||
18 | total credit under this subsection claimed by a
family that is | ||||||
19 | the
custodian of qualifying pupils exceed (i) $500 for tax | ||||||
20 | years ending prior to December 31, 2017, and (ii) $750 for tax | ||||||
21 | years ending on or after December 31, 2017. In no event shall a | ||||||
22 | credit under
this subsection reduce the taxpayer's liability | ||||||
23 | under this Act to less than
zero. Notwithstanding any other | ||||||
24 | provision of law, for taxable years beginning on or after | ||||||
25 | January 1, 2017, no taxpayer may claim a credit under this | ||||||
26 | subsection (m) if the taxpayer's adjusted gross income for the |
| |||||||
| |||||||
1 | taxable year exceeds (i) $500,000, in the case of spouses | ||||||
2 | filing a joint federal tax return or (ii) $250,000, in the case | ||||||
3 | of all other taxpayers. This subsection is exempt from the | ||||||
4 | provisions of Section 250 of this
Act. | ||||||
5 | For purposes of this subsection: | ||||||
6 | "Qualifying pupils" means individuals who (i) are | ||||||
7 | residents of the State of
Illinois, (ii) are under the age of | ||||||
8 | 21 at the close of the school year for
which a credit is | ||||||
9 | sought, and (iii) during the school year for which a credit
is | ||||||
10 | sought were full-time pupils enrolled in a kindergarten | ||||||
11 | through twelfth
grade education program at any school, as | ||||||
12 | defined in this subsection. | ||||||
13 | "Qualified education expense" means the amount incurred
on | ||||||
14 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
15 | book fees, and
lab fees at the school in which the pupil is | ||||||
16 | enrolled during the regular school
year. | ||||||
17 | "School" means any public or nonpublic elementary or | ||||||
18 | secondary school in
Illinois that is in compliance with Title | ||||||
19 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
20 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
21 | except that nothing shall be construed to require a child to
| ||||||
22 | attend any particular public or nonpublic school to qualify | ||||||
23 | for the credit
under this Section. | ||||||
24 | "Custodian" means, with respect to qualifying pupils, an | ||||||
25 | Illinois resident
who is a parent, the parents, a legal | ||||||
26 | guardian, or the legal guardians of the
qualifying pupils. |
| |||||||
| |||||||
1 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
2 | credit.
| ||||||
3 | (i) For tax years ending on or after December 31, | ||||||
4 | 2006, a taxpayer shall be allowed a credit against the tax | ||||||
5 | imposed by subsections (a) and (b) of this Section for | ||||||
6 | certain amounts paid for unreimbursed eligible remediation | ||||||
7 | costs, as specified in this subsection. For purposes of | ||||||
8 | this Section, "unreimbursed eligible remediation costs" | ||||||
9 | means costs approved by the Illinois Environmental | ||||||
10 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
11 | Environmental Protection Act that were paid in performing | ||||||
12 | environmental remediation at a site within a River Edge | ||||||
13 | Redevelopment Zone for which a No Further Remediation | ||||||
14 | Letter was issued by the Agency and recorded under Section | ||||||
15 | 58.10 of the Environmental Protection Act. The credit must | ||||||
16 | be claimed for the taxable year in which Agency approval | ||||||
17 | of the eligible remediation costs is granted. The credit | ||||||
18 | is not available to any taxpayer if the taxpayer or any | ||||||
19 | related party caused or contributed to, in any material | ||||||
20 | respect, a release of regulated substances on, in, or | ||||||
21 | under the site that was identified and addressed by the | ||||||
22 | remedial action pursuant to the Site Remediation Program | ||||||
23 | of the Environmental Protection Act. Determinations as to | ||||||
24 | credit availability for purposes of this Section shall be | ||||||
25 | made consistent with rules adopted by the Pollution | ||||||
26 | Control Board pursuant to the Illinois Administrative |
| |||||||
| |||||||
1 | Procedure Act for the administration and enforcement of | ||||||
2 | Section 58.9 of the Environmental Protection Act. For | ||||||
3 | purposes of this Section, "taxpayer" includes a person | ||||||
4 | whose tax attributes the taxpayer has succeeded to under | ||||||
5 | Section 381 of the Internal Revenue Code and "related | ||||||
6 | party" includes the persons disallowed a deduction for | ||||||
7 | losses by paragraphs (b), (c), and (f)(1) of Section 267 | ||||||
8 | of the Internal Revenue Code by virtue of being a related | ||||||
9 | taxpayer, as well as any of its partners. The credit | ||||||
10 | allowed against the tax imposed by subsections (a) and (b) | ||||||
11 | shall be equal to 25% of the unreimbursed eligible | ||||||
12 | remediation costs in excess of $100,000 per site. | ||||||
13 | (ii) A credit allowed under this subsection that is | ||||||
14 | unused in the year the credit is earned may be carried | ||||||
15 | forward to each of the 5 taxable years following the year | ||||||
16 | for which the credit is first earned until it is used. This | ||||||
17 | credit shall be applied first to the earliest year for | ||||||
18 | which there is a liability. If there is a credit under this | ||||||
19 | subsection from more than one tax year that is available | ||||||
20 | to offset a liability, the earliest credit arising under | ||||||
21 | this subsection shall be applied first. A credit allowed | ||||||
22 | under this subsection may be sold to a buyer as part of a | ||||||
23 | sale of all or part of the remediation site for which the | ||||||
24 | credit was granted. The purchaser of a remediation site | ||||||
25 | and the tax credit shall succeed to the unused credit and | ||||||
26 | remaining carry-forward period of the seller. To perfect |
| |||||||
| |||||||
1 | the transfer, the assignor shall record the transfer in | ||||||
2 | the chain of title for the site and provide written notice | ||||||
3 | to the Director of the Illinois Department of Revenue of | ||||||
4 | the assignor's intent to sell the remediation site and the | ||||||
5 | amount of the tax credit to be transferred as a portion of | ||||||
6 | the sale. In no event may a credit be transferred to any | ||||||
7 | taxpayer if the taxpayer or a related party would not be | ||||||
8 | eligible under the provisions of subsection (i). | ||||||
9 | (iii) For purposes of this Section, the term "site" | ||||||
10 | shall have the same meaning as under Section 58.2 of the | ||||||
11 | Environmental Protection Act. | ||||||
12 | (o) For each of taxable years during the Compassionate Use | ||||||
13 | of Medical Cannabis Program, a surcharge is imposed on all | ||||||
14 | taxpayers on income arising from the sale or exchange of | ||||||
15 | capital assets, depreciable business property, real property | ||||||
16 | used in the trade or business, and Section 197 intangibles of | ||||||
17 | an organization registrant under the Compassionate Use of | ||||||
18 | Medical Cannabis Program Act. The amount of the surcharge is | ||||||
19 | equal to the amount of federal income tax liability for the | ||||||
20 | taxable year attributable to those sales and exchanges. The | ||||||
21 | surcharge imposed does not apply if: | ||||||
22 | (1) the medical cannabis cultivation center | ||||||
23 | registration, medical cannabis dispensary registration, or | ||||||
24 | the property of a registration is transferred as a result | ||||||
25 | of any of the following: | ||||||
26 | (A) bankruptcy, a receivership, or a debt |
| |||||||
| |||||||
1 | adjustment initiated by or against the initial | ||||||
2 | registration or the substantial owners of the initial | ||||||
3 | registration; | ||||||
4 | (B) cancellation, revocation, or termination of | ||||||
5 | any registration by the Illinois Department of Public | ||||||
6 | Health; | ||||||
7 | (C) a determination by the Illinois Department of | ||||||
8 | Public Health that transfer of the registration is in | ||||||
9 | the best interests of Illinois qualifying patients as | ||||||
10 | defined by the Compassionate Use of Medical Cannabis | ||||||
11 | Program Act; | ||||||
12 | (D) the death of an owner of the equity interest in | ||||||
13 | a registrant; | ||||||
14 | (E) the acquisition of a controlling interest in | ||||||
15 | the stock or substantially all of the assets of a | ||||||
16 | publicly traded company; | ||||||
17 | (F) a transfer by a parent company to a wholly | ||||||
18 | owned subsidiary; or | ||||||
19 | (G) the transfer or sale to or by one person to | ||||||
20 | another person where both persons were initial owners | ||||||
21 | of the registration when the registration was issued; | ||||||
22 | or | ||||||
23 | (2) the cannabis cultivation center registration, | ||||||
24 | medical cannabis dispensary registration, or the | ||||||
25 | controlling interest in a registrant's property is | ||||||
26 | transferred in a transaction to lineal descendants in |
| |||||||
| |||||||
1 | which no gain or loss is recognized or as a result of a | ||||||
2 | transaction in accordance with Section 351 of the Internal | ||||||
3 | Revenue Code in which no gain or loss is recognized. | ||||||
4 | (p) Pass-through entity tax. | ||||||
5 | (1) For taxable years ending on or after December 31, | ||||||
6 | 2021 and beginning prior to January 1, 2026, a partnership | ||||||
7 | (other than a publicly traded partnership under Section | ||||||
8 | 7704 of the Internal Revenue Code) or Subchapter S | ||||||
9 | corporation may elect to apply the provisions of this | ||||||
10 | subsection. A separate election shall be made for each | ||||||
11 | taxable year. Such election shall be made at such time, | ||||||
12 | and in such form and manner as prescribed by the | ||||||
13 | Department, and, once made, is irrevocable. | ||||||
14 | (2) Entity-level tax. A partnership or Subchapter S | ||||||
15 | corporation electing to apply the provisions of this | ||||||
16 | subsection shall be subject to a tax for the privilege of | ||||||
17 | earning or receiving income in this State in an amount | ||||||
18 | equal to 4.95% of the taxpayer's net income for the | ||||||
19 | taxable year. | ||||||
20 | (3) Net income defined. | ||||||
21 | (A) In general. For purposes of paragraph (2), the | ||||||
22 | term net income has the same meaning as defined in | ||||||
23 | Section 202 of this Act, except that , for tax years | ||||||
24 | ending on or after December 31, 2023, a deduction | ||||||
25 | shall be allowed in computing base income for | ||||||
26 | distributions to a retired partner to the extent that |
| |||||||
| |||||||
1 | the partner's distributions are exempt from tax under | ||||||
2 | Section 203(a)(2)(F) of this Act. In addition, the | ||||||
3 | following modifications provisions shall not apply: | ||||||
4 | (i) the standard exemption allowed under | ||||||
5 | Section 204; | ||||||
6 | (ii) the deduction for net losses allowed | ||||||
7 | under Section 207; | ||||||
8 | (iii) in the case of an S corporation, the | ||||||
9 | modification under Section 203(b)(2)(S); and | ||||||
10 | (iv) in the case of a partnership, the | ||||||
11 | modifications under Section 203(d)(2)(H) and | ||||||
12 | Section 203(d)(2)(I). | ||||||
13 | (B) Special rule for tiered partnerships. If a | ||||||
14 | taxpayer making the election under paragraph (1) is a | ||||||
15 | partner of another taxpayer making the election under | ||||||
16 | paragraph (1), net income shall be computed as | ||||||
17 | provided in subparagraph (A), except that the taxpayer | ||||||
18 | shall subtract its distributive share of the net | ||||||
19 | income of the electing partnership (including its | ||||||
20 | distributive share of the net income of the electing | ||||||
21 | partnership derived as a distributive share from | ||||||
22 | electing partnerships in which it is a partner). | ||||||
23 | (4) Credit for entity level tax. Each partner or | ||||||
24 | shareholder of a taxpayer making the election under this | ||||||
25 | Section shall be allowed a credit against the tax imposed | ||||||
26 | under subsections (a) and (b) of Section 201 of this Act |
| |||||||
| |||||||
1 | for the taxable year of the partnership or Subchapter S | ||||||
2 | corporation for which an election is in effect ending | ||||||
3 | within or with the taxable year of the partner or | ||||||
4 | shareholder in an amount equal to 4.95% times the partner | ||||||
5 | or shareholder's distributive share of the net income of | ||||||
6 | the electing partnership or Subchapter S corporation, but | ||||||
7 | not to exceed the partner's or shareholder's share of the | ||||||
8 | tax imposed under paragraph (1) which is actually paid by | ||||||
9 | the partnership or Subchapter S corporation. If the | ||||||
10 | taxpayer is a partnership or Subchapter S corporation that | ||||||
11 | is itself a partner of a partnership making the election | ||||||
12 | under paragraph (1), the credit under this paragraph shall | ||||||
13 | be allowed to the taxpayer's partners or shareholders (or | ||||||
14 | if the partner is a partnership or Subchapter S | ||||||
15 | corporation then its partners or shareholders) in | ||||||
16 | accordance with the determination of income and | ||||||
17 | distributive share of income under Sections 702 and 704 | ||||||
18 | and Subchapter S of the Internal Revenue Code. If the | ||||||
19 | amount of the credit allowed under this paragraph exceeds | ||||||
20 | the partner's or shareholder's liability for tax imposed | ||||||
21 | under subsections (a) and (b) of Section 201 of this Act | ||||||
22 | for the taxable year, such excess shall be treated as an | ||||||
23 | overpayment for purposes of Section 909 of this Act. | ||||||
24 | (5) Nonresidents. A nonresident individual who is a | ||||||
25 | partner or shareholder of a partnership or Subchapter S | ||||||
26 | corporation for a taxable year for which an election is in |
| |||||||
| |||||||
1 | effect under paragraph (1) shall not be required to file | ||||||
2 | an income tax return under this Act for such taxable year | ||||||
3 | if the only source of net income of the individual (or the | ||||||
4 | individual and the individual's spouse in the case of a | ||||||
5 | joint return) is from an entity making the election under | ||||||
6 | paragraph (1) and the credit allowed to the partner or | ||||||
7 | shareholder under paragraph (4) equals or exceeds the | ||||||
8 | individual's liability for the tax imposed under | ||||||
9 | subsections (a) and (b) of Section 201 of this Act for the | ||||||
10 | taxable year. | ||||||
11 | (6) Liability for tax. Except as provided in this | ||||||
12 | paragraph, a partnership or Subchapter S making the | ||||||
13 | election under paragraph (1) is liable for the | ||||||
14 | entity-level tax imposed under paragraph (2). If the | ||||||
15 | electing partnership or corporation fails to pay the full | ||||||
16 | amount of tax deemed assessed under paragraph (2), the | ||||||
17 | partners or shareholders shall be liable to pay the tax | ||||||
18 | assessed (including penalties and interest). Each partner | ||||||
19 | or shareholder shall be liable for the unpaid assessment | ||||||
20 | based on the ratio of the partner's or shareholder's share | ||||||
21 | of the net income of the partnership over the total net | ||||||
22 | income of the partnership. If the partnership or | ||||||
23 | Subchapter S corporation fails to pay the tax assessed | ||||||
24 | (including penalties and interest) and thereafter an | ||||||
25 | amount of such tax is paid by the partners or | ||||||
26 | shareholders, such amount shall not be collected from the |
| |||||||
| |||||||
1 | partnership or corporation. | ||||||
2 | (7) Foreign tax. For purposes of the credit allowed | ||||||
3 | under Section 601(b)(3) of this Act, tax paid by a | ||||||
4 | partnership or Subchapter S corporation to another state | ||||||
5 | which, as determined by the Department, is substantially | ||||||
6 | similar to the tax imposed under this subsection, shall be | ||||||
7 | considered tax paid by the partner or shareholder to the | ||||||
8 | extent that the partner's or shareholder's share of the | ||||||
9 | income of the partnership or Subchapter S corporation | ||||||
10 | allocated and apportioned to such other state bears to the | ||||||
11 | total income of the partnership or Subchapter S | ||||||
12 | corporation allocated or apportioned to such other state. | ||||||
13 | (8) Suspension of withholding. The provisions of | ||||||
14 | Section 709.5 of this Act shall not apply to a partnership | ||||||
15 | or Subchapter S corporation for the taxable year for which | ||||||
16 | an election under paragraph (1) is in effect. | ||||||
17 | (9) Requirement to pay estimated tax. For each taxable | ||||||
18 | year for which an election under paragraph (1) is in | ||||||
19 | effect, a partnership or Subchapter S corporation is | ||||||
20 | required to pay estimated tax for such taxable year under | ||||||
21 | Sections 803 and 804 of this Act if the amount payable as | ||||||
22 | estimated tax can reasonably be expected to exceed $500. | ||||||
23 | (10) The provisions of this subsection shall apply | ||||||
24 | only with respect to taxable years for which the | ||||||
25 | limitation on individual deductions applies under Section | ||||||
26 | 164(b)(6) of the Internal Revenue Code. |
| |||||||
| |||||||
1 | (Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; | ||||||
2 | 101-207, eff. 8-2-19; 101-363, eff. 8-9-19; 102-558, eff. | ||||||
3 | 8-20-21; 102-658, eff. 8-27-21.) | ||||||
4 | ARTICLE 995. NON-ACCELERATION | ||||||
5 | Section 995-95. No acceleration or delay. Where this Act | ||||||
6 | makes changes in a statute that is represented in this Act by | ||||||
7 | text that is not yet or no longer in effect (for example, a | ||||||
8 | Section represented by multiple versions), the use of that | ||||||
9 | text does not accelerate or delay the taking effect of (i) the | ||||||
10 | changes made by this Act or (ii) provisions derived from any | ||||||
11 | other Public Act. | ||||||
12 | ARTICLE 999. EFFECTIVE DATE
| ||||||
13 | Section 999-99. Effective date. This Act takes effect upon | ||||||
14 | becoming law, except that Article 20 takes effect on July 1, | ||||||
15 | 2023 and Articles 55 and 100 take effect on January 1, 2024.".
|