Rep. John E. Bradley
Filed: 3/2/2011
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1 | AMENDMENT TO SENATE BILL 4
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2 | AMENDMENT NO. ______. Amend Senate Bill 4 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The State Comptroller Act is amended by adding | ||||||
5 | Section 10.05c as follows: | ||||||
6 | (15 ILCS 405/10.05c new) | ||||||
7 | Sec. 10.05c. Deductions from warrants and payments for | ||||||
8 | satisfaction of EDGE employment penalty. At the direction of | ||||||
9 | the Department of Commerce and Economic Opportunity, the | ||||||
10 | Comptroller shall deduct from a warrant or other payment | ||||||
11 | described in Section 10.05 of this Act, in accordance with the | ||||||
12 | procedures provided therein, and pay over to the Department of | ||||||
13 | Commerce and Economic Opportunity, for deposit into the General | ||||||
14 | Revenue Fund, that amount certified as necessary to satisfy, in | ||||||
15 | whole or in part, amounts due and owing from a Taxpayer under | ||||||
16 | Section 5-67 of the Economic Development for a Growing Economy |
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1 | Tax Credit Act. | ||||||
2 | Section 10. The Illinois Income Tax Act is amended by | ||||||
3 | changing Sections 201 and 250 as follows: | ||||||
4 | (35 ILCS 5/201) (from Ch. 120, par. 2-201) | ||||||
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
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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 equal | ||||||
18 | to 2 1/2% of the taxpayer's
net income for the taxable | ||||||
19 | 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 | ||||||
24 | July 1, 1989, as calculated under Section 202.3, and (ii) |
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1 | 3% of the
taxpayer's net income for the period after June | ||||||
2 | 30, 1989, as calculated
under Section 202.3. | ||||||
3 | (3) In the case of an individual, trust or estate, for | ||||||
4 | taxable years
beginning after June 30, 1989, and ending | ||||||
5 | prior to January 1, 2011, an amount equal to 3% of the | ||||||
6 | taxpayer's net
income for the taxable year. | ||||||
7 | (4) In the case of an individual, trust, or estate, for | ||||||
8 | taxable years beginning prior to January 1, 2011, and | ||||||
9 | ending after December 31, 2010, an amount equal to the sum | ||||||
10 | of (i) 3% of the taxpayer's net income for the period prior | ||||||
11 | to January 1, 2011, as calculated under Section 202.5, and | ||||||
12 | (ii) 5% of the taxpayer's net income for the period after | ||||||
13 | December 31, 2010, as calculated under Section 202.5. | ||||||
14 | (5) In the case of an individual, trust, or estate, for | ||||||
15 | taxable years beginning on or after January 1, 2011, and | ||||||
16 | ending prior to January 1, 2015, an amount equal to 5% of | ||||||
17 | the taxpayer's net income for the taxable year. | ||||||
18 | (5.1) In the case of an individual, trust, or estate, | ||||||
19 | for taxable years beginning prior to January 1, 2015, and | ||||||
20 | ending after December 31, 2014, an amount equal to the sum | ||||||
21 | of (i) 5% of the taxpayer's net income for the period prior | ||||||
22 | to January 1, 2015, as calculated under Section 202.5, and | ||||||
23 | (ii) 3.75% of the taxpayer's net income for the period | ||||||
24 | after December 31, 2014, as calculated under Section 202.5. | ||||||
25 | (5.2) In the case of an individual, trust, or estate, | ||||||
26 | for taxable years beginning on or after January 1, 2015, |
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1 | and ending prior to January 1, 2025, an amount equal to | ||||||
2 | 3.75% of the taxpayer's net income for the taxable year. | ||||||
3 | (5.3) In the case of an individual, trust, or estate, | ||||||
4 | for taxable years beginning prior to January 1, 2025, and | ||||||
5 | ending after December 31, 2024, an amount equal to the sum | ||||||
6 | of (i) 3.75% of the taxpayer's net income for the period | ||||||
7 | prior to January 1, 2025, as calculated under Section | ||||||
8 | 202.5, and (ii) 3.25% of the taxpayer's net income for the | ||||||
9 | period after December 31, 2024, as calculated under Section | ||||||
10 | 202.5. | ||||||
11 | (5.4) In the case of an individual, trust, or estate, | ||||||
12 | for taxable years beginning on or after January 1, 2025, an | ||||||
13 | amount equal to 3.25% of the taxpayer's net income for the | ||||||
14 | taxable year. | ||||||
15 | (6) In the case of a corporation, for taxable years
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16 | ending prior to July 1, 1989, an amount equal to 4% of the
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17 | taxpayer's net income for the taxable year. | ||||||
18 | (7) In the case of a corporation, for taxable years | ||||||
19 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
20 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
21 | taxpayer's net income for the period prior to July 1, 1989,
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22 | as calculated under Section 202.3, and (ii) 4.8% of the | ||||||
23 | taxpayer's net
income for the period after June 30, 1989, | ||||||
24 | as calculated under Section
202.3. | ||||||
25 | (8) In the case of a corporation, for taxable years | ||||||
26 | beginning after
June 30, 1989, and ending prior to January |
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1 | 1, 2011, an amount equal to 4.8% of the taxpayer's net | ||||||
2 | income for the
taxable year. | ||||||
3 | (9) In the case of a corporation, for taxable years | ||||||
4 | beginning prior to January 1, 2011, and ending after | ||||||
5 | December 31, 2010, an amount equal to the sum of (i) 4.8% | ||||||
6 | of the taxpayer's net income for the period prior to | ||||||
7 | January 1, 2011, as calculated under Section 202.5, and | ||||||
8 | (ii) 7% of the taxpayer's net income for the period after | ||||||
9 | December 31, 2010, as calculated under Section 202.5. | ||||||
10 | (10) In the case of a corporation, for taxable years | ||||||
11 | beginning on or after January 1, 2011, and ending prior to | ||||||
12 | January 1, 2015, an amount equal to 7% of the taxpayer's | ||||||
13 | net income for the taxable year. | ||||||
14 | (11) In the case of a corporation, for taxable years | ||||||
15 | beginning prior to January 1, 2015, and ending after | ||||||
16 | December 31, 2014, an amount equal to the sum of (i) 7% of | ||||||
17 | the taxpayer's net income for the period prior to January | ||||||
18 | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% | ||||||
19 | of the taxpayer's net income for the period after December | ||||||
20 | 31, 2014, as calculated under Section 202.5. | ||||||
21 | (12) In the case of a corporation, for taxable years | ||||||
22 | beginning on or after January 1, 2015, and ending prior to | ||||||
23 | January 1, 2025, an amount equal to 5.25% of the taxpayer's | ||||||
24 | net income for the taxable year. | ||||||
25 | (13) In the case of a corporation, for taxable years | ||||||
26 | beginning prior to January 1, 2025, and ending after |
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1 | December 31, 2024, an amount equal to the sum of (i) 5.25% | ||||||
2 | of the taxpayer's net income for the period prior to | ||||||
3 | January 1, 2025, as calculated under Section 202.5, and | ||||||
4 | (ii) 4.8% of the taxpayer's net income for the period after | ||||||
5 | December 31, 2024, as calculated under Section 202.5. | ||||||
6 | (14) In the case of a corporation, for taxable years | ||||||
7 | beginning on or after January 1, 2025, an amount equal to | ||||||
8 | 4.8% of the taxpayer's net income for the taxable year. | ||||||
9 | The rates under this subsection (b) are subject to the | ||||||
10 | provisions of Section 201.5. | ||||||
11 | (c) Personal Property Tax Replacement Income Tax.
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12 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
13 | income
tax, there is also hereby imposed the Personal Property | ||||||
14 | Tax Replacement
Income Tax measured by net income on every | ||||||
15 | corporation (including Subchapter
S corporations), partnership | ||||||
16 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
17 | Such taxes are imposed on the privilege of earning or
receiving | ||||||
18 | income in or as a resident of this State. The Personal Property
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19 | Tax Replacement Income Tax shall be in addition to the income | ||||||
20 | tax imposed
by subsections (a) and (b) of this Section and in | ||||||
21 | addition to all other
occupation or privilege taxes imposed by | ||||||
22 | this State or by any municipal
corporation or political | ||||||
23 | subdivision thereof. | ||||||
24 | (d) Additional Personal Property Tax Replacement Income | ||||||
25 | Tax Rates.
The personal property tax replacement income tax | ||||||
26 | imposed by this subsection
and subsection (c) of this Section |
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1 | in the case of a corporation, other
than a Subchapter S | ||||||
2 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
3 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
4 | income for the taxable year, except that
beginning on January | ||||||
5 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
6 | subsection shall be reduced to 2.5%, and in the case of a
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7 | partnership, trust or a Subchapter S corporation shall be an | ||||||
8 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
9 | for the taxable year. | ||||||
10 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
11 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
12 | Illinois Insurance Code,
whose state or country of domicile | ||||||
13 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
14 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
15 | are 50% or more of its total insurance
premiums as determined | ||||||
16 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
17 | that for purposes of this determination premiums from | ||||||
18 | reinsurance do
not include premiums from inter-affiliate | ||||||
19 | reinsurance arrangements),
beginning with taxable years ending | ||||||
20 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
21 | imposed by subsections (b) and (d) shall be reduced (but not
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22 | increased) to the rate at which the total amount of tax imposed | ||||||
23 | under this Act,
net of all credits allowed under this Act, | ||||||
24 | shall equal (i) the total amount of
tax that would be imposed | ||||||
25 | on the foreign insurer's net income allocable to
Illinois for | ||||||
26 | the taxable year by such foreign insurer's state or country of
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1 | domicile if that net income were subject to all income taxes | ||||||
2 | and taxes
measured by net income imposed by such foreign | ||||||
3 | insurer's state or country of
domicile, net of all credits | ||||||
4 | allowed or (ii) a rate of zero if no such tax is
imposed on such | ||||||
5 | income by the foreign insurer's state of domicile.
For the | ||||||
6 | purposes of this subsection (d-1), an inter-affiliate includes | ||||||
7 | a
mutual insurer under common management. | ||||||
8 | (1) For the purposes of subsection (d-1), in no event | ||||||
9 | shall the sum of the
rates of tax imposed by subsections | ||||||
10 | (b) and (d) be reduced below the rate at
which the sum of: | ||||||
11 | (A) the total amount of tax imposed on such foreign | ||||||
12 | insurer under
this Act for a taxable year, net of all | ||||||
13 | credits allowed under this Act, plus | ||||||
14 | (B) the privilege tax imposed by Section 409 of the | ||||||
15 | Illinois Insurance
Code, the fire insurance company | ||||||
16 | tax imposed by Section 12 of the Fire
Investigation | ||||||
17 | Act, and the fire department taxes imposed under | ||||||
18 | Section 11-10-1
of the Illinois Municipal Code, | ||||||
19 | equals 1.25% for taxable years ending prior to December 31, | ||||||
20 | 2003, or
1.75% for taxable years ending on or after | ||||||
21 | December 31, 2003, of the net
taxable premiums written for | ||||||
22 | the taxable year,
as described by subsection (1) of Section | ||||||
23 | 409 of the Illinois Insurance Code.
This paragraph will in | ||||||
24 | no event increase the rates imposed under subsections
(b) | ||||||
25 | and (d). | ||||||
26 | (2) Any reduction in the rates of tax imposed by this |
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1 | subsection shall be
applied first against the rates imposed | ||||||
2 | by subsection (b) and only after the
tax imposed by | ||||||
3 | subsection (a) net of all credits allowed under this | ||||||
4 | Section
other than the credit allowed under subsection (i) | ||||||
5 | has been reduced to zero,
against the rates imposed by | ||||||
6 | subsection (d). | ||||||
7 | This subsection (d-1) is exempt from the provisions of | ||||||
8 | Section 250. | ||||||
9 | (e) Investment credit. A taxpayer shall be allowed a credit
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10 | against the Personal Property Tax Replacement Income Tax for
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11 | investment in qualified property. | ||||||
12 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
13 | of
the basis of qualified property placed in service during | ||||||
14 | the taxable year,
provided such property is placed in | ||||||
15 | service on or after
July 1, 1984. There shall be allowed an | ||||||
16 | additional credit equal
to .5% of the basis of qualified | ||||||
17 | property placed in service during the
taxable year, | ||||||
18 | provided such property is placed in service on or
after | ||||||
19 | July 1, 1986, and the taxpayer's base employment
within | ||||||
20 | Illinois has increased by 1% or more over the preceding | ||||||
21 | year as
determined by the taxpayer's employment records | ||||||
22 | filed with the
Illinois Department of Employment Security. | ||||||
23 | Taxpayers who are new to
Illinois shall be deemed to have | ||||||
24 | met the 1% growth in base employment for
the first year in | ||||||
25 | which they file employment records with the Illinois
| ||||||
26 | Department of Employment Security. The provisions added to |
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1 | this Section by
Public Act 85-1200 (and restored by Public | ||||||
2 | Act 87-895) shall be
construed as declaratory of existing | ||||||
3 | law and not as a new enactment. If,
in any year, the | ||||||
4 | increase in base employment within Illinois over the
| ||||||
5 | preceding year is less than 1%, the additional credit shall | ||||||
6 | be limited to that
percentage times a fraction, the | ||||||
7 | numerator of which is .5% and the denominator
of which is | ||||||
8 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
9 | not be
allowed to the extent that it would reduce a | ||||||
10 | taxpayer's liability in any tax
year below zero, nor may | ||||||
11 | any credit for qualified property be allowed for any
year | ||||||
12 | other than the year in which the property was placed in | ||||||
13 | service in
Illinois. For tax years ending on or after | ||||||
14 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
15 | credit shall be allowed for the tax year in
which the | ||||||
16 | property is placed in service, or, if the amount of the | ||||||
17 | credit
exceeds the tax liability for that year, whether it | ||||||
18 | exceeds the original
liability or the liability as later | ||||||
19 | amended, such excess may be carried
forward and applied to | ||||||
20 | the tax liability of the 5 taxable years following
the | ||||||
21 | excess credit years if the taxpayer (i) makes investments | ||||||
22 | which cause
the creation of a minimum of 2,000 full-time | ||||||
23 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
24 | enterprise zone established pursuant to the Illinois
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25 | Enterprise Zone Act and (iii) is certified by the | ||||||
26 | Department of Commerce
and Community Affairs (now |
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1 | Department of Commerce and Economic Opportunity) as | ||||||
2 | complying with the requirements specified in
clause (i) and | ||||||
3 | (ii) by July 1, 1986. The Department of Commerce and
| ||||||
4 | Community Affairs (now Department of Commerce and Economic | ||||||
5 | Opportunity) shall notify the Department of Revenue of all | ||||||
6 | such
certifications immediately. For tax years ending | ||||||
7 | after December 31, 1988,
the credit shall be allowed for | ||||||
8 | the tax year in which the property is
placed in service, | ||||||
9 | or, if the amount of the credit exceeds the tax
liability | ||||||
10 | for that year, whether it exceeds the original liability or | ||||||
11 | the
liability as later amended, such excess may be carried | ||||||
12 | forward and applied
to the tax liability of the 5 taxable | ||||||
13 | years following the excess credit
years. The credit shall | ||||||
14 | be applied to the earliest year for which there is
a | ||||||
15 | liability. If there is credit from more than one tax year | ||||||
16 | that is
available to offset a liability, earlier credit | ||||||
17 | shall be applied first. | ||||||
18 | (2) The term "qualified property" means property | ||||||
19 | which: | ||||||
20 | (A) is tangible, whether new or used, including | ||||||
21 | buildings and structural
components of buildings and | ||||||
22 | signs that are real property, but not including
land or | ||||||
23 | improvements to real property that are not a structural | ||||||
24 | component of a
building such as landscaping, sewer | ||||||
25 | lines, local access roads, fencing, parking
lots, and | ||||||
26 | other appurtenances; |
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1 | (B) is depreciable pursuant to Section 167 of the | ||||||
2 | Internal Revenue Code,
except that "3-year property" | ||||||
3 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
4 | eligible for the credit provided by this subsection | ||||||
5 | (e); | ||||||
6 | (C) is acquired by purchase as defined in Section | ||||||
7 | 179(d) of
the Internal Revenue Code; | ||||||
8 | (D) is used in Illinois by a taxpayer who is | ||||||
9 | primarily engaged in
manufacturing, or in mining coal | ||||||
10 | or fluorite, or in retailing, or was placed in service | ||||||
11 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
12 | Zone established pursuant to the River Edge | ||||||
13 | Redevelopment Zone Act; and | ||||||
14 | (E) has not previously been used in Illinois in | ||||||
15 | such a manner and by
such a person as would qualify for | ||||||
16 | the credit provided by this subsection
(e) or | ||||||
17 | subsection (f). | ||||||
18 | (3) For purposes of this subsection (e), | ||||||
19 | "manufacturing" means
the material staging and production | ||||||
20 | of tangible personal property by
procedures commonly | ||||||
21 | regarded as manufacturing, processing, fabrication, or
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22 | assembling which changes some existing material into new | ||||||
23 | shapes, new
qualities, or new combinations. For purposes of | ||||||
24 | this subsection
(e) the term "mining" shall have the same | ||||||
25 | meaning as the term "mining" in
Section 613(c) of the | ||||||
26 | Internal Revenue Code. For purposes of this subsection
(e), |
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1 | the term "retailing" means the sale of tangible personal | ||||||
2 | property for use or consumption and not for resale, or
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3 | services rendered in conjunction with the sale of tangible | ||||||
4 | personal property for use or consumption and not for | ||||||
5 | resale. For purposes of this subsection (e), "tangible | ||||||
6 | personal property" has the same meaning as when that term | ||||||
7 | is used in the Retailers' Occupation Tax Act, and, for | ||||||
8 | taxable years ending after December 31, 2008, does not | ||||||
9 | include the generation, transmission, or distribution of | ||||||
10 | electricity. | ||||||
11 | (4) The basis of qualified property shall be the basis
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12 | used to compute the depreciation deduction for federal | ||||||
13 | income tax purposes. | ||||||
14 | (5) If the basis of the property for federal income tax | ||||||
15 | depreciation
purposes is increased after it has been placed | ||||||
16 | in service in Illinois by
the taxpayer, the amount of such | ||||||
17 | increase shall be deemed property placed
in service on the | ||||||
18 | date of such increase in basis. | ||||||
19 | (6) The term "placed in service" shall have the same
| ||||||
20 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
21 | (7) If during any taxable year, any property ceases to
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22 | be qualified property in the hands of the taxpayer within | ||||||
23 | 48 months after
being placed in service, or the situs of | ||||||
24 | any qualified property is
moved outside Illinois within 48 | ||||||
25 | months after being placed in service, the
Personal Property | ||||||
26 | Tax Replacement Income Tax for such taxable year shall be
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1 | increased. Such increase shall be determined by (i) | ||||||
2 | recomputing the
investment credit which would have been | ||||||
3 | allowed for the year in which
credit for such property was | ||||||
4 | originally allowed by eliminating such
property from such | ||||||
5 | computation and, (ii) subtracting such recomputed credit
| ||||||
6 | from the amount of credit previously allowed. For the | ||||||
7 | purposes of this
paragraph (7), a reduction of the basis of | ||||||
8 | qualified property resulting
from a redetermination of the | ||||||
9 | purchase price shall be deemed a disposition
of qualified | ||||||
10 | property to the extent of such reduction. | ||||||
11 | (8) Unless the investment credit is extended by law, | ||||||
12 | the
basis of qualified property shall not include costs | ||||||
13 | incurred after
December 31, 2013, except for costs incurred | ||||||
14 | pursuant to a binding
contract entered into on or before | ||||||
15 | December 31, 2013. | ||||||
16 | (9) Each taxable year ending before December 31, 2000, | ||||||
17 | a partnership may
elect to pass through to its
partners the | ||||||
18 | credits to which the partnership is entitled under this | ||||||
19 | subsection
(e) for the taxable year. A partner may use the | ||||||
20 | credit allocated to him or her
under this paragraph only | ||||||
21 | against the tax imposed in subsections (c) and (d) of
this | ||||||
22 | Section. If the partnership makes that election, those | ||||||
23 | credits shall be
allocated among the partners in the | ||||||
24 | partnership in accordance with the rules
set forth in | ||||||
25 | Section 704(b) of the Internal Revenue Code, and the rules
| ||||||
26 | promulgated under that Section, and the allocated amount of |
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1 | the credits shall
be allowed to the partners for that | ||||||
2 | taxable year. The partnership shall make
this election on | ||||||
3 | its Personal Property Tax Replacement Income Tax return for
| ||||||
4 | that taxable year. The election to pass through the credits | ||||||
5 | shall be
irrevocable. | ||||||
6 | For taxable years ending on or after December 31, 2000, | ||||||
7 | a
partner that qualifies its
partnership for a subtraction | ||||||
8 | under subparagraph (I) of paragraph (2) of
subsection (d) | ||||||
9 | of Section 203 or a shareholder that qualifies a Subchapter | ||||||
10 | S
corporation for a subtraction under subparagraph (S) of | ||||||
11 | paragraph (2) of
subsection (b) of Section 203 shall be | ||||||
12 | allowed a credit under this subsection
(e) equal to its | ||||||
13 | share of the credit earned under this subsection (e) during
| ||||||
14 | the taxable year by the partnership or Subchapter S | ||||||
15 | corporation, determined in
accordance with the | ||||||
16 | determination of income and distributive share of
income | ||||||
17 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
18 | Revenue
Code. This paragraph is exempt from the provisions | ||||||
19 | of Section 250. | ||||||
20 | (f) Investment credit; Enterprise Zone; River Edge | ||||||
21 | Redevelopment Zone. | ||||||
22 | (1) A taxpayer shall be allowed a credit against the | ||||||
23 | tax imposed
by subsections (a) and (b) of this Section for | ||||||
24 | investment in qualified
property which is placed in service | ||||||
25 | in an Enterprise Zone created
pursuant to the Illinois | ||||||
26 | Enterprise Zone Act or, for property placed in service on |
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| |||||||
1 | or after July 1, 2006, a River Edge Redevelopment Zone | ||||||
2 | established pursuant to the River Edge Redevelopment Zone | ||||||
3 | Act. For partners, shareholders
of Subchapter S | ||||||
4 | corporations, and owners of limited liability companies,
| ||||||
5 | if the liability company is treated as a partnership for | ||||||
6 | purposes of
federal and State income taxation, there shall | ||||||
7 | be allowed a credit under
this subsection (f) to be | ||||||
8 | determined in accordance with the determination
of income | ||||||
9 | and distributive share of income under Sections 702 and 704 | ||||||
10 | and
Subchapter S of the Internal Revenue Code. The credit | ||||||
11 | shall be .5% of the
basis for such property. The credit | ||||||
12 | shall be available only in the taxable
year in which the | ||||||
13 | property is placed in service in the Enterprise Zone or | ||||||
14 | River Edge Redevelopment Zone and
shall not be allowed to | ||||||
15 | the extent that it would reduce a taxpayer's
liability for | ||||||
16 | the tax imposed by subsections (a) and (b) of this Section | ||||||
17 | to
below zero. For tax years ending on or after December | ||||||
18 | 31, 1985, the credit
shall be allowed for the tax year in | ||||||
19 | which the property is placed in
service, or, if the amount | ||||||
20 | of the credit exceeds the tax liability for that
year, | ||||||
21 | whether it exceeds the original liability or the liability | ||||||
22 | as later
amended, such excess may be carried forward and | ||||||
23 | applied to the tax
liability of the 5 taxable years | ||||||
24 | following the excess credit year.
The credit shall be | ||||||
25 | applied to the earliest year for which there is a
| ||||||
26 | liability. If there is credit from more than one tax year |
| |||||||
| |||||||
1 | that is available
to offset a liability, the credit | ||||||
2 | accruing first in time shall be applied
first. | ||||||
3 | (2) The term qualified property means property which: | ||||||
4 | (A) is tangible, whether new or used, including | ||||||
5 | buildings and
structural components of buildings; | ||||||
6 | (B) is depreciable pursuant to Section 167 of the | ||||||
7 | Internal Revenue
Code, except that "3-year property" | ||||||
8 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
9 | eligible for the credit provided by this subsection | ||||||
10 | (f); | ||||||
11 | (C) is acquired by purchase as defined in Section | ||||||
12 | 179(d) of
the Internal Revenue Code; | ||||||
13 | (D) is used in the Enterprise Zone or River Edge | ||||||
14 | Redevelopment Zone by the taxpayer; and | ||||||
15 | (E) has not been previously used in Illinois in | ||||||
16 | such a manner and by
such a person as would qualify for | ||||||
17 | the credit provided by this subsection
(f) or | ||||||
18 | subsection (e). | ||||||
19 | (3) The basis of qualified property shall be the basis | ||||||
20 | used to compute
the depreciation deduction for federal | ||||||
21 | income tax purposes. | ||||||
22 | (4) If the basis of the property for federal income tax | ||||||
23 | depreciation
purposes is increased after it has been placed | ||||||
24 | in service in the Enterprise
Zone or River Edge | ||||||
25 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
26 | increase shall be deemed property
placed in service on the |
| |||||||
| |||||||
1 | date of such increase in basis. | ||||||
2 | (5) The term "placed in service" shall have the same | ||||||
3 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
4 | (6) If during any taxable year, any property ceases to | ||||||
5 | be qualified
property in the hands of the taxpayer within | ||||||
6 | 48 months after being placed
in service, or the situs of | ||||||
7 | any qualified property is moved outside the
Enterprise Zone | ||||||
8 | or River Edge Redevelopment Zone within 48 months after | ||||||
9 | being placed in service, the tax
imposed under subsections | ||||||
10 | (a) and (b) of this Section for such taxable year
shall be | ||||||
11 | increased. Such increase shall be determined by (i) | ||||||
12 | recomputing
the investment credit which would have been | ||||||
13 | allowed for the year in which
credit for such property was | ||||||
14 | originally allowed by eliminating such
property from such | ||||||
15 | computation, and (ii) subtracting such recomputed credit
| ||||||
16 | from the amount of credit previously allowed. For the | ||||||
17 | purposes of this
paragraph (6), a reduction of the basis of | ||||||
18 | qualified property resulting
from a redetermination of the | ||||||
19 | purchase price shall be deemed a disposition
of qualified | ||||||
20 | property to the extent of such reduction. | ||||||
21 | (7) There shall be allowed an additional credit equal | ||||||
22 | to 0.5% of the basis of qualified property placed in | ||||||
23 | service during the taxable year in a River Edge | ||||||
24 | Redevelopment Zone, provided such property is placed in | ||||||
25 | service on or after July 1, 2006, and the taxpayer's base | ||||||
26 | employment within Illinois has increased by 1% or more over |
| |||||||
| |||||||
1 | the preceding year as determined by the taxpayer's | ||||||
2 | employment records filed with the Illinois Department of | ||||||
3 | Employment Security. Taxpayers who are new to Illinois | ||||||
4 | shall be deemed to have met the 1% growth in base | ||||||
5 | employment for the first year in which they file employment | ||||||
6 | records with the Illinois Department of Employment | ||||||
7 | Security. If, in any year, the increase in base employment | ||||||
8 | within Illinois over the preceding year is less than 1%, | ||||||
9 | the additional credit shall be limited to that percentage | ||||||
10 | times a fraction, the numerator of which is 0.5% and the | ||||||
11 | denominator of which is 1%, but shall not exceed 0.5%.
| ||||||
12 | (g) Jobs Tax Credit; Enterprise Zone, River Edge | ||||||
13 | Redevelopment Zone, and Foreign Trade Zone or Sub-Zone. | ||||||
14 | (1) A taxpayer conducting a trade or business in an | ||||||
15 | enterprise zone
or a High Impact Business designated by the | ||||||
16 | Department of Commerce and
Economic Opportunity or for | ||||||
17 | taxable years ending on or after December 31, 2006, in a | ||||||
18 | River Edge Redevelopment Zone conducting a trade or | ||||||
19 | business in a federally designated
Foreign Trade Zone or | ||||||
20 | Sub-Zone shall be allowed a credit against the tax
imposed | ||||||
21 | by subsections (a) and (b) of this Section in the amount of | ||||||
22 | $500
per eligible employee hired to work in the zone during | ||||||
23 | the taxable year. | ||||||
24 | (2) To qualify for the credit: | ||||||
25 | (A) the taxpayer must hire 5 or more eligible | ||||||
26 | employees to work in an
enterprise zone, River Edge |
| |||||||
| |||||||
1 | Redevelopment Zone, or federally designated Foreign | ||||||
2 | Trade Zone or Sub-Zone
during the taxable year; | ||||||
3 | (B) the taxpayer's total employment within the | ||||||
4 | enterprise zone, River Edge Redevelopment Zone, or
| ||||||
5 | federally designated Foreign Trade Zone or Sub-Zone | ||||||
6 | must
increase by 5 or more full-time employees beyond | ||||||
7 | the total employed in that
zone at the end of the | ||||||
8 | previous tax year for which a jobs tax
credit under | ||||||
9 | this Section was taken, or beyond the total employed by | ||||||
10 | the
taxpayer as of December 31, 1985, whichever is | ||||||
11 | later; and | ||||||
12 | (C) the eligible employees must be employed 180 | ||||||
13 | consecutive days in
order to be deemed hired for | ||||||
14 | purposes of this subsection. | ||||||
15 | (3) An "eligible employee" means an employee who is: | ||||||
16 | (A) Certified by the Department of Commerce and | ||||||
17 | Economic Opportunity
as "eligible for services" | ||||||
18 | pursuant to regulations promulgated in
accordance with | ||||||
19 | Title II of the Job Training Partnership Act, Training
| ||||||
20 | Services for the Disadvantaged or Title III of the Job | ||||||
21 | Training Partnership
Act, Employment and Training | ||||||
22 | Assistance for Dislocated Workers Program. | ||||||
23 | (B) Hired after the enterprise zone, River Edge | ||||||
24 | Redevelopment Zone, or federally designated Foreign
| ||||||
25 | Trade Zone or Sub-Zone was designated or the trade or
| ||||||
26 | business was located in that zone, whichever is later. |
| |||||||
| |||||||
1 | (C) Employed in the enterprise zone, River Edge | ||||||
2 | Redevelopment Zone, or Foreign Trade Zone or
Sub-Zone. | ||||||
3 | An employee is employed in an
enterprise zone or | ||||||
4 | federally designated Foreign Trade Zone or Sub-Zone
if | ||||||
5 | his services are rendered there or it is the base of
| ||||||
6 | operations for the services performed. | ||||||
7 | (D) A full-time employee working 30 or more hours | ||||||
8 | per week. | ||||||
9 | (4) For tax years ending on or after December 31, 1985 | ||||||
10 | and prior to
December 31, 1988, the credit shall be allowed | ||||||
11 | for the tax year in which
the eligible employees are hired. | ||||||
12 | For tax years ending on or after
December 31, 1988, the | ||||||
13 | credit shall be allowed for the tax year immediately
| ||||||
14 | following the tax year in which the eligible employees are | ||||||
15 | hired. If the
amount of the credit exceeds the tax | ||||||
16 | liability for that year, whether it
exceeds the original | ||||||
17 | liability or the liability as later amended, such
excess | ||||||
18 | may be carried forward and applied to the tax liability of | ||||||
19 | the 5
taxable years following the excess credit year. The | ||||||
20 | credit shall be
applied to the earliest year for which | ||||||
21 | there is a liability. If there is
credit from more than one | ||||||
22 | tax year that is available to offset a liability,
earlier | ||||||
23 | credit shall be applied first. | ||||||
24 | (5) The Department of Revenue shall promulgate such | ||||||
25 | rules and regulations
as may be deemed necessary to carry | ||||||
26 | out the purposes of this subsection (g). |
| |||||||
| |||||||
1 | (6) The credit shall be available for eligible | ||||||
2 | employees hired on or
after January 1, 1986. | ||||||
3 | (h) Investment credit; High Impact Business. | ||||||
4 | (1) Subject to subsections (b) and (b-5) of Section
5.5 | ||||||
5 | of the Illinois Enterprise Zone Act, a taxpayer shall be | ||||||
6 | allowed a credit
against the tax imposed by subsections (a) | ||||||
7 | and (b) of this Section for
investment in qualified
| ||||||
8 | property which is placed in service by a Department of | ||||||
9 | Commerce and Economic Opportunity
designated High Impact | ||||||
10 | Business. The credit shall be .5% of the basis
for such | ||||||
11 | property. The credit shall not be available (i) until the | ||||||
12 | minimum
investments in qualified property set forth in | ||||||
13 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
14 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
15 | time authorized in subsection (b-5) of the Illinois
| ||||||
16 | Enterprise Zone Act for entities designated as High Impact | ||||||
17 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
18 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
19 | Act, and shall not be allowed to the extent that it would
| ||||||
20 | reduce a taxpayer's liability for the tax imposed by | ||||||
21 | subsections (a) and (b) of
this Section to below zero. The | ||||||
22 | credit applicable to such investments shall be
taken in the | ||||||
23 | taxable year in which such investments have been completed. | ||||||
24 | The
credit for additional investments beyond the minimum | ||||||
25 | investment by a designated
high impact business authorized | ||||||
26 | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois |
| |||||||
| |||||||
1 | Enterprise Zone Act shall be available only in the taxable | ||||||
2 | year in
which the property is placed in service and shall | ||||||
3 | not be allowed to the extent
that it would reduce a | ||||||
4 | taxpayer's liability for the tax imposed by subsections
(a) | ||||||
5 | and (b) of this Section to below zero.
For tax years ending | ||||||
6 | on or after December 31, 1987, the credit shall be
allowed | ||||||
7 | for the tax year in which the property is placed in | ||||||
8 | service, or, if
the amount of the credit exceeds the tax | ||||||
9 | liability for that year, whether
it exceeds the original | ||||||
10 | liability or the liability as later amended, such
excess | ||||||
11 | may be carried forward and applied to the tax liability of | ||||||
12 | the 5
taxable years following the excess credit year. The | ||||||
13 | credit shall be
applied to the earliest year for which | ||||||
14 | there is a liability. If there is
credit from more than one | ||||||
15 | tax year that is available to offset a liability,
the | ||||||
16 | credit accruing first in time shall be applied first. | ||||||
17 | Changes made in this subdivision (h)(1) by Public Act | ||||||
18 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
19 | reflect existing law. | ||||||
20 | (2) The term qualified property means property which: | ||||||
21 | (A) is tangible, whether new or used, including | ||||||
22 | buildings and
structural components of buildings; | ||||||
23 | (B) is depreciable pursuant to Section 167 of the | ||||||
24 | Internal Revenue
Code, except that "3-year property" | ||||||
25 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
26 | eligible for the credit provided by this subsection |
| |||||||
| |||||||
1 | (h); | ||||||
2 | (C) is acquired by purchase as defined in Section | ||||||
3 | 179(d) of the
Internal Revenue Code; and | ||||||
4 | (D) is not eligible for the Enterprise Zone | ||||||
5 | Investment Credit provided
by subsection (f) of this | ||||||
6 | Section. | ||||||
7 | (3) The basis of qualified property shall be the basis | ||||||
8 | used to compute
the depreciation deduction for federal | ||||||
9 | income tax purposes. | ||||||
10 | (4) If the basis of the property for federal income tax | ||||||
11 | depreciation
purposes is increased after it has been placed | ||||||
12 | in service in a federally
designated Foreign Trade Zone or | ||||||
13 | Sub-Zone located in Illinois by the taxpayer,
the amount of | ||||||
14 | such increase shall be deemed property placed in service on
| ||||||
15 | the date of such increase in basis. | ||||||
16 | (5) The term "placed in service" shall have the same | ||||||
17 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
18 | (6) If during any taxable year ending on or before | ||||||
19 | December 31, 1996,
any property ceases to be qualified
| ||||||
20 | property in the hands of the taxpayer within 48 months | ||||||
21 | after being placed
in service, or the situs of any | ||||||
22 | qualified property is moved outside
Illinois within 48 | ||||||
23 | months after being placed in service, the tax imposed
under | ||||||
24 | subsections (a) and (b) of this Section for such taxable | ||||||
25 | year shall
be increased. Such increase shall be determined | ||||||
26 | by (i) recomputing the
investment credit which would have |
| |||||||
| |||||||
1 | been allowed for the year in which
credit for such property | ||||||
2 | was originally allowed by eliminating such
property from | ||||||
3 | such computation, and (ii) subtracting such recomputed | ||||||
4 | credit
from the amount of credit previously allowed. For | ||||||
5 | the purposes of this
paragraph (6), a reduction of the | ||||||
6 | basis of qualified property resulting
from a | ||||||
7 | redetermination of the purchase price shall be deemed a | ||||||
8 | disposition
of qualified property to the extent of such | ||||||
9 | reduction. | ||||||
10 | (7) Beginning with tax years ending after December 31, | ||||||
11 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
12 | subsection (h) and thereby is
granted a tax abatement and | ||||||
13 | the taxpayer relocates its entire facility in
violation of | ||||||
14 | the explicit terms and length of the contract under Section
| ||||||
15 | 18-183 of the Property Tax Code, the tax imposed under | ||||||
16 | subsections
(a) and (b) of this Section shall be increased | ||||||
17 | for the taxable year
in which the taxpayer relocated its | ||||||
18 | facility by an amount equal to the
amount of credit | ||||||
19 | received by the taxpayer under this subsection (h). | ||||||
20 | (i) Credit for Personal Property Tax Replacement Income | ||||||
21 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
22 | shall be allowed
against the tax imposed by
subsections (a) and | ||||||
23 | (b) of this Section for the tax imposed by subsections (c)
and | ||||||
24 | (d) of this Section. This credit shall be computed by | ||||||
25 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
26 | Section by a fraction, the numerator
of which is base income |
| |||||||
| |||||||
1 | allocable to Illinois and the denominator of which is
Illinois | ||||||
2 | base income, and further multiplying the product by the tax | ||||||
3 | rate
imposed by subsections (a) and (b) of this Section. | ||||||
4 | Any credit earned on or after December 31, 1986 under
this | ||||||
5 | subsection which is unused in the year
the credit is computed | ||||||
6 | because it exceeds the tax liability imposed by
subsections (a) | ||||||
7 | and (b) for that year (whether it exceeds the original
| ||||||
8 | liability or the liability as later amended) may be carried | ||||||
9 | forward and
applied to the tax liability imposed by subsections | ||||||
10 | (a) and (b) of the 5
taxable years following the excess credit | ||||||
11 | year, provided that no credit may
be carried forward to any | ||||||
12 | year ending on or
after December 31, 2003. This credit shall be
| ||||||
13 | applied first to the earliest year for which there is a | ||||||
14 | liability. If
there is a credit under this subsection from more | ||||||
15 | than one tax year that is
available to offset a liability the | ||||||
16 | earliest credit arising under this
subsection shall be applied | ||||||
17 | first. | ||||||
18 | If, during any taxable year ending on or after December 31, | ||||||
19 | 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
20 | Section for which a taxpayer
has claimed a credit under this | ||||||
21 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
22 | shall also be reduced. Such reduction shall be
determined by | ||||||
23 | recomputing the credit to take into account the reduced tax
| ||||||
24 | imposed by subsections (c) and (d). If any portion of the
| ||||||
25 | reduced amount of credit has been carried to a different | ||||||
26 | taxable year, an
amended return shall be filed for such taxable |
| |||||||
| |||||||
1 | year to reduce the amount of
credit claimed. | ||||||
2 | (j) Training expense credit. Beginning with tax years | ||||||
3 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
4 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
5 | imposed by subsections (a) and (b) under this Section
for all | ||||||
6 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
7 | the taxpayer in Illinois or Illinois residents employed
outside | ||||||
8 | of Illinois by a taxpayer, for educational or vocational | ||||||
9 | training in
semi-technical or technical fields or semi-skilled | ||||||
10 | or skilled fields, which
were deducted from gross income in the | ||||||
11 | computation of taxable income. The
credit against the tax | ||||||
12 | imposed by subsections (a) and (b) shall be 1.6% of
such | ||||||
13 | training expenses. For partners, shareholders of subchapter S
| ||||||
14 | corporations, and owners of limited liability companies, if the | ||||||
15 | liability
company is treated as a partnership for purposes of | ||||||
16 | federal and State income
taxation, there shall be allowed a | ||||||
17 | credit under this subsection (j) to be
determined in accordance | ||||||
18 | with the determination of income and distributive
share of | ||||||
19 | income under Sections 702 and 704 and subchapter S of the | ||||||
20 | Internal
Revenue Code. | ||||||
21 | Any credit allowed under this subsection which is unused in | ||||||
22 | the year
the credit is earned may be carried forward to each of | ||||||
23 | the 5 taxable
years following the year for which the credit is | ||||||
24 | first computed until it is
used. This credit shall be applied | ||||||
25 | first to the earliest year for which
there is a liability. If | ||||||
26 | there is a credit under this subsection from more
than one tax |
| |||||||
| |||||||
1 | year that is available to offset a liability the earliest
| ||||||
2 | credit arising under this subsection shall be applied first. No | ||||||
3 | carryforward
credit may be claimed in any tax year ending on or | ||||||
4 | after
December 31, 2003. | ||||||
5 | (k) Research and development credit. | ||||||
6 | For tax years ending after July 1, 1990 and prior to
| ||||||
7 | December 31, 2003, and beginning again for tax years ending on | ||||||
8 | or after December 31, 2004, and ending prior to January 1, | ||||||
9 | 2011, a taxpayer shall be
allowed a credit against the tax | ||||||
10 | imposed by subsections (a) and (b) of this
Section for | ||||||
11 | increasing research activities in this State. The credit
| ||||||
12 | allowed against the tax imposed by subsections (a) and (b) | ||||||
13 | shall be equal
to 6 1/2% of the qualifying expenditures for | ||||||
14 | increasing research activities
in this State. For partners, | ||||||
15 | shareholders of subchapter S corporations, and
owners of | ||||||
16 | limited liability companies, if the liability company is | ||||||
17 | treated as a
partnership for purposes of federal and State | ||||||
18 | income taxation, there shall be
allowed a credit under this | ||||||
19 | subsection to be determined in accordance with the
| ||||||
20 | determination of income and distributive share of income under | ||||||
21 | Sections 702 and
704 and subchapter S of the Internal Revenue | ||||||
22 | Code. | ||||||
23 | For purposes of this subsection, "qualifying expenditures" | ||||||
24 | means the
qualifying expenditures as defined for the federal | ||||||
25 | credit for increasing
research activities which would be | ||||||
26 | allowable under Section 41 of the
Internal Revenue Code and |
| |||||||
| |||||||
1 | which are conducted in this State, "qualifying
expenditures for | ||||||
2 | increasing research activities in this State" means the
excess | ||||||
3 | of qualifying expenditures for the taxable year in which | ||||||
4 | incurred
over qualifying expenditures for the base period, | ||||||
5 | "qualifying expenditures
for the base period" means the average | ||||||
6 | of the qualifying expenditures for
each year in the base | ||||||
7 | period, and "base period" means the 3 taxable years
immediately | ||||||
8 | preceding the taxable year for which the determination is
being | ||||||
9 | made. | ||||||
10 | Any credit in excess of the tax liability for the taxable | ||||||
11 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
12 | unused credit shown on its final completed return carried over | ||||||
13 | as a credit
against the tax liability for the following 5 | ||||||
14 | taxable years or until it has
been fully used, whichever occurs | ||||||
15 | first; provided that no credit earned in a tax year ending | ||||||
16 | prior to December 31, 2003 may be carried forward to any year | ||||||
17 | ending on or after December 31, 2003, and no credit may be | ||||||
18 | carried forward to any taxable year ending on or after January | ||||||
19 | 1, 2011. | ||||||
20 | If an unused credit is carried forward to a given year from | ||||||
21 | 2 or more
earlier years, that credit arising in the earliest | ||||||
22 | year will be applied
first against the tax liability for the | ||||||
23 | given year. If a tax liability for
the given year still | ||||||
24 | remains, the credit from the next earliest year will
then be | ||||||
25 | applied, and so on, until all credits have been used or no tax
| ||||||
26 | liability for the given year remains. Any remaining unused |
| |||||||
| |||||||
1 | credit or
credits then will be carried forward to the next | ||||||
2 | following year in which a
tax liability is incurred, except | ||||||
3 | that no credit can be carried forward to
a year which is more | ||||||
4 | than 5 years after the year in which the expense for
which the | ||||||
5 | credit is given was incurred. | ||||||
6 | No inference shall be drawn from this amendatory Act of the | ||||||
7 | 91st General
Assembly in construing this Section for taxable | ||||||
8 | years beginning before January
1, 1999. | ||||||
9 | (l) Environmental Remediation Tax Credit. | ||||||
10 | (i) For tax years ending after December 31, 1997 and on | ||||||
11 | or before
December 31, 2001, a taxpayer shall be allowed a | ||||||
12 | credit against the tax
imposed by subsections (a) and (b) | ||||||
13 | of this Section for certain amounts paid
for unreimbursed | ||||||
14 | eligible remediation costs, as specified in this | ||||||
15 | subsection.
For purposes of this Section, "unreimbursed | ||||||
16 | eligible remediation costs" means
costs approved by the | ||||||
17 | Illinois Environmental Protection Agency ("Agency") under
| ||||||
18 | Section 58.14 of the Environmental Protection Act that were | ||||||
19 | paid in performing
environmental remediation at a site for | ||||||
20 | which a No Further Remediation Letter
was issued by the | ||||||
21 | Agency and recorded under Section 58.10 of the | ||||||
22 | Environmental
Protection Act. The credit must be claimed | ||||||
23 | for the taxable year in which
Agency approval of the | ||||||
24 | eligible remediation costs is granted. The credit is
not | ||||||
25 | available to any taxpayer if the taxpayer or any related | ||||||
26 | party caused or
contributed to, in any material respect, a |
| |||||||
| |||||||
1 | release of regulated substances on,
in, or under the site | ||||||
2 | that was identified and addressed by the remedial
action | ||||||
3 | pursuant to the Site Remediation Program of the | ||||||
4 | Environmental Protection
Act. After the Pollution Control | ||||||
5 | Board rules are adopted pursuant to the
Illinois | ||||||
6 | Administrative Procedure Act for the administration and | ||||||
7 | enforcement of
Section 58.9 of the Environmental | ||||||
8 | Protection Act, determinations as to credit
availability | ||||||
9 | for purposes of this Section shall be made consistent with | ||||||
10 | those
rules. For purposes of this Section, "taxpayer" | ||||||
11 | includes a person whose tax
attributes the taxpayer has | ||||||
12 | succeeded to under Section 381 of the Internal
Revenue Code | ||||||
13 | and "related party" includes the persons disallowed a | ||||||
14 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
15 | Section 267 of the Internal
Revenue Code by virtue of being | ||||||
16 | a related taxpayer, as well as any of its
partners. The | ||||||
17 | credit allowed against the tax imposed by subsections (a) | ||||||
18 | and
(b) shall be equal to 25% of the unreimbursed eligible | ||||||
19 | remediation costs in
excess of $100,000 per site, except | ||||||
20 | that the $100,000 threshold shall not apply
to any site | ||||||
21 | contained in an enterprise zone as determined by the | ||||||
22 | Department of
Commerce and Community Affairs (now | ||||||
23 | Department of Commerce and Economic Opportunity). The | ||||||
24 | total credit allowed shall not exceed
$40,000 per year with | ||||||
25 | a maximum total of $150,000 per site. For partners and
| ||||||
26 | shareholders of subchapter S corporations, there shall be |
| |||||||
| |||||||
1 | allowed a credit
under this subsection to be determined in | ||||||
2 | accordance with the determination of
income and | ||||||
3 | distributive share of income under Sections 702 and 704 and
| ||||||
4 | subchapter S of the Internal Revenue Code. | ||||||
5 | (ii) A credit allowed under this subsection that is | ||||||
6 | unused in the year
the credit is earned may be carried | ||||||
7 | forward to each of the 5 taxable years
following the year | ||||||
8 | for which the credit is first earned until it is used.
The | ||||||
9 | term "unused credit" does not include any amounts of | ||||||
10 | unreimbursed eligible
remediation costs in excess of the | ||||||
11 | maximum credit per site authorized under
paragraph (i). | ||||||
12 | This credit shall be applied first to the earliest year
for | ||||||
13 | which there is a liability. If there is a credit under this | ||||||
14 | subsection
from more than one tax year that is available to | ||||||
15 | offset a liability, the
earliest credit arising under this | ||||||
16 | subsection shall be applied first. A
credit allowed under | ||||||
17 | this subsection may be sold to a buyer as part of a sale
of | ||||||
18 | all or part of the remediation site for which the credit | ||||||
19 | was granted. The
purchaser of a remediation site and the | ||||||
20 | tax credit shall succeed to the unused
credit and remaining | ||||||
21 | carry-forward period of the seller. To perfect the
| ||||||
22 | transfer, the assignor shall record the transfer in the | ||||||
23 | chain of title for the
site and provide written notice to | ||||||
24 | the Director of the Illinois Department of
Revenue of the | ||||||
25 | assignor's intent to sell the remediation site and the | ||||||
26 | amount of
the tax credit to be transferred as a portion of |
| |||||||
| |||||||
1 | the sale. In no event may a
credit be transferred to any | ||||||
2 | taxpayer if the taxpayer or a related party would
not be | ||||||
3 | eligible under the provisions of subsection (i). | ||||||
4 | (iii) For purposes of this Section, the term "site" | ||||||
5 | shall have the same
meaning as under Section 58.2 of the | ||||||
6 | Environmental Protection Act. | ||||||
7 | (m) Education expense credit. Beginning with tax years | ||||||
8 | ending after
December 31, 1999, a taxpayer who
is the custodian | ||||||
9 | of one or more qualifying pupils shall be allowed a credit
| ||||||
10 | against the tax imposed by subsections (a) and (b) of this | ||||||
11 | Section for
qualified education expenses incurred on behalf of | ||||||
12 | the qualifying pupils.
The credit shall be equal to 25% of | ||||||
13 | qualified education expenses, but in no
event may the total | ||||||
14 | credit under this subsection claimed by a
family that is the
| ||||||
15 | custodian of qualifying pupils exceed $500. In no event shall a | ||||||
16 | credit under
this subsection reduce the taxpayer's liability | ||||||
17 | under this Act to less than
zero. This subsection is exempt | ||||||
18 | from the provisions of Section 250 of this
Act. | ||||||
19 | For purposes of this subsection: | ||||||
20 | "Qualifying pupils" means individuals who (i) are | ||||||
21 | residents of the State of
Illinois, (ii) are under the age of | ||||||
22 | 21 at the close of the school year for
which a credit is | ||||||
23 | sought, and (iii) during the school year for which a credit
is | ||||||
24 | sought were full-time pupils enrolled in a kindergarten through | ||||||
25 | twelfth
grade education program at any school, as defined in | ||||||
26 | this subsection. |
| |||||||
| |||||||
1 | "Qualified education expense" means the amount incurred
on | ||||||
2 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
3 | book fees, and
lab fees at the school in which the pupil is | ||||||
4 | enrolled during the regular school
year. | ||||||
5 | "School" means any public or nonpublic elementary or | ||||||
6 | secondary school in
Illinois that is in compliance with Title | ||||||
7 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
8 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
9 | except that nothing shall be construed to require a child to
| ||||||
10 | attend any particular public or nonpublic school to qualify for | ||||||
11 | the credit
under this Section. | ||||||
12 | "Custodian" means, with respect to qualifying pupils, an | ||||||
13 | Illinois resident
who is a parent, the parents, a legal | ||||||
14 | guardian, or the legal guardians of the
qualifying pupils. | ||||||
15 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
16 | credit.
| ||||||
17 | (i) For tax years ending on or after December 31, 2006, | ||||||
18 | a taxpayer shall be allowed a credit against the tax | ||||||
19 | imposed by subsections (a) and (b) of this Section for | ||||||
20 | certain amounts paid for unreimbursed eligible remediation | ||||||
21 | costs, as specified in this subsection. For purposes of | ||||||
22 | this Section, "unreimbursed eligible remediation costs" | ||||||
23 | means costs approved by the Illinois Environmental | ||||||
24 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
25 | Environmental Protection Act that were paid in performing | ||||||
26 | environmental remediation at a site within a River Edge |
| |||||||
| |||||||
1 | Redevelopment Zone for which a No Further Remediation | ||||||
2 | Letter was issued by the Agency and recorded under Section | ||||||
3 | 58.10 of the Environmental Protection Act. The credit must | ||||||
4 | be claimed for the taxable year in which Agency approval of | ||||||
5 | the eligible remediation costs is granted. The credit is | ||||||
6 | not available to any taxpayer if the taxpayer or any | ||||||
7 | related party caused or contributed to, in any material | ||||||
8 | respect, a release of regulated substances on, in, or under | ||||||
9 | the site that was identified and addressed by the remedial | ||||||
10 | action pursuant to the Site Remediation Program of the | ||||||
11 | Environmental Protection Act. Determinations as to credit | ||||||
12 | availability for purposes of this Section shall be made | ||||||
13 | consistent with rules adopted by the Pollution Control | ||||||
14 | Board pursuant to the Illinois Administrative Procedure | ||||||
15 | Act for the administration and enforcement of Section 58.9 | ||||||
16 | of the Environmental Protection Act. For purposes of this | ||||||
17 | Section, "taxpayer" includes a person whose tax attributes | ||||||
18 | the taxpayer has succeeded to under Section 381 of the | ||||||
19 | Internal Revenue Code and "related party" includes the | ||||||
20 | persons disallowed a deduction for losses by paragraphs | ||||||
21 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
22 | Code by virtue of being a related taxpayer, as well as any | ||||||
23 | of its partners. The credit allowed against the tax imposed | ||||||
24 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
25 | unreimbursed eligible remediation costs in excess of | ||||||
26 | $100,000 per site. |
| |||||||
| |||||||
1 | (ii) A credit allowed under this subsection that is | ||||||
2 | unused in the year the credit is earned may be carried | ||||||
3 | forward to each of the 5 taxable years following the year | ||||||
4 | for which the credit is first earned until it is used. This | ||||||
5 | credit shall be applied first to the earliest year for | ||||||
6 | which there is a liability. If there is a credit under this | ||||||
7 | subsection from more than one tax year that is available to | ||||||
8 | offset a liability, the earliest credit arising under this | ||||||
9 | subsection shall be applied first. A credit allowed under | ||||||
10 | this subsection may be sold to a buyer as part of a sale of | ||||||
11 | all or part of the remediation site for which the credit | ||||||
12 | was granted. The purchaser of a remediation site and the | ||||||
13 | tax credit shall succeed to the unused credit and remaining | ||||||
14 | carry-forward period of the seller. To perfect the | ||||||
15 | transfer, the assignor shall record the transfer in the | ||||||
16 | chain of title for the site and provide written notice to | ||||||
17 | the Director of the Illinois Department of Revenue of the | ||||||
18 | assignor's intent to sell the remediation site and the | ||||||
19 | amount of the tax credit to be transferred as a portion of | ||||||
20 | the sale. In no event may a credit be transferred to any | ||||||
21 | taxpayer if the taxpayer or a related party would not be | ||||||
22 | eligible under the provisions of subsection (i). | ||||||
23 | (iii) For purposes of this Section, the term "site" | ||||||
24 | shall have the same meaning as under Section 58.2 of the | ||||||
25 | Environmental Protection Act. | ||||||
26 | (iv) This subsection is exempt from the provisions of |
| |||||||
| |||||||
1 | Section 250.
| ||||||
2 | (Source: P.A. 95-454, eff. 8-27-07; 96-115, eff. 7-31-09; | ||||||
3 | 96-116, eff. 7-31-09; 96-937, eff. 6-23-10; 96-1000, eff. | ||||||
4 | 7-2-10; 96-1496, eff. 1-13-11.)
| ||||||
5 | (35 ILCS 5/250)
| ||||||
6 | Sec. 250. Sunset of exemptions, credits, and deductions. | ||||||
7 | The application
of every exemption, credit, and deduction | ||||||
8 | against tax imposed by this Act that
becomes law after the | ||||||
9 | effective date of this amendatory Act of 1994 shall be
limited | ||||||
10 | by a reasonable and appropriate sunset date. A taxpayer is not
| ||||||
11 | entitled to take the exemption, credit, or deduction for tax | ||||||
12 | years beginning on
or after the sunset
date. If a reasonable | ||||||
13 | and appropriate sunset date is not
specified in the Public Act | ||||||
14 | that creates the exemption, credit, or deduction, a
taxpayer | ||||||
15 | shall not be entitled to take the exemption, credit, or | ||||||
16 | deduction for
tax years beginning on or after 5 years after the | ||||||
17 | effective date of the Public
Act creating the
exemption, | ||||||
18 | credit, or deduction and thereafter; provided, however, that in
| ||||||
19 | the case of any Public Act authorizing the issuance of | ||||||
20 | tax-exempt obligations
that does not specify a sunset date for | ||||||
21 | the exemption or deduction of income
derived from the | ||||||
22 | obligations, the exemption or deduction shall not terminate
| ||||||
23 | until after the obligations have been paid by the issuer. No | ||||||
24 | exemption, credit, or deduction against a tax imposed by this | ||||||
25 | Act that was in effect prior to September 16, 1994 (the |
| |||||||
| |||||||
1 | effective date of Public Act 88-660) may be taken in any | ||||||
2 | taxable year ending on or after December 31, 2012 unless a | ||||||
3 | different sunset date is stated in the provision setting forth | ||||||
4 | the exemption, credit, or deduction.
| ||||||
5 | (Source: P.A. 88-660, eff. 9-16-94; 89-460, eff. 5-24-96.)
| ||||||
6 | Section 15. The Economic Development for a Growing Economy | ||||||
7 | Tax Credit Act is amended by changing Sections 5-15 and 5-50 | ||||||
8 | and by adding Sections 5-67 and 5-77 as follows: | ||||||
9 | (35 ILCS 10/5-15) | ||||||
10 | Sec. 5-15. Tax Credit Awards. Subject to the conditions set | ||||||
11 | forth in this
Act, a Taxpayer is
entitled to a Credit against | ||||||
12 | or, as described in subsection (g) of this Section, a payment | ||||||
13 | towards taxes imposed pursuant to subsections (a) and (b)
of | ||||||
14 | Section 201 of the Illinois
Income Tax Act that may be imposed | ||||||
15 | on the Taxpayer for a taxable year beginning
on or
after | ||||||
16 | January 1, 1999,
if the Taxpayer is awarded a Credit by the | ||||||
17 | Department under this Act for that
taxable year. | ||||||
18 | (a) The Department shall make Credit awards under this Act | ||||||
19 | to foster job
creation and retention in Illinois. | ||||||
20 | (b) A person that proposes a project to create new jobs in | ||||||
21 | Illinois must
enter into an Agreement with the
Department for | ||||||
22 | the Credit under this Act. | ||||||
23 | (c) The Credit shall be claimed for the taxable years | ||||||
24 | specified in the
Agreement. |
| |||||||
| |||||||
1 | (d) The Credit shall not exceed the Incremental Income Tax | ||||||
2 | attributable to
the project that is the subject of the | ||||||
3 | Agreement. | ||||||
4 | (e) Nothing herein shall prohibit a Tax Credit Award to an | ||||||
5 | Applicant that uses a PEO if all other award criteria are | ||||||
6 | satisfied.
| ||||||
7 | (f) In lieu of the Credit allowed under this Act against | ||||||
8 | the taxes imposed pursuant to subsections (a) and (b) of | ||||||
9 | Section 201 of the Illinois Income Tax Act for any taxable year | ||||||
10 | ending on or after December 31, 2009, the Taxpayer may elect to | ||||||
11 | claim the Credit against its obligation to pay over withholding | ||||||
12 | under Section 704A of the Illinois Income Tax Act. | ||||||
13 | (1) The election under this subsection (f) may be made | ||||||
14 | only by a Taxpayer that (i) is primarily engaged in one of | ||||||
15 | the following business activities: motor vehicle metal | ||||||
16 | stamping, automobile manufacturing, automobile and light | ||||||
17 | duty motor vehicle manufacturing, motor vehicle | ||||||
18 | manufacturing, light truck and utility vehicle | ||||||
19 | manufacturing, heavy duty truck manufacturing, or motor | ||||||
20 | vehicle body manufacturing , cable television | ||||||
21 | infrastructure design or manufacturing, or wireless | ||||||
22 | telecommunication or computing terminal device design or | ||||||
23 | manufacturing for use on public networks, and (ii) meets | ||||||
24 | the following criteria: | ||||||
25 | (A) the Taxpayer (i) had an Illinois net loss or an | ||||||
26 | Illinois net loss deduction under Section 207 of the |
| |||||||
| |||||||
1 | Illinois Income Tax Act for the taxable year in which | ||||||
2 | the Credit is awarded, (ii) employed a minimum of 1,000 | ||||||
3 | full-time employees in this State during the taxable | ||||||
4 | year in which the Credit is awarded, (iii) has an | ||||||
5 | Agreement under this Act on December 14, 2009 (the | ||||||
6 | effective date of Public Act 96-834), and (iv) is in | ||||||
7 | compliance with all provisions of that Agreement; | ||||||
8 | (B) the Taxpayer (i) had an Illinois net loss or an | ||||||
9 | Illinois net loss deduction under Section 207 of the | ||||||
10 | Illinois Income Tax Act for the taxable year in which | ||||||
11 | the Credit is awarded, (ii) employed a minimum of 1,000 | ||||||
12 | full-time employees in this State during the taxable | ||||||
13 | year in which the Credit is awarded, and (iii) has | ||||||
14 | applied for an Agreement within 365 days after December | ||||||
15 | 14, 2009 (the effective date of Public Act 96-834); or | ||||||
16 | (C) 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 calendar | ||||||
19 | year 2008, (ii) has applied for an Agreement within 150 | ||||||
20 | days after the effective date of this amendatory Act of | ||||||
21 | the 96th General Assembly, (iii) creates at least 400 | ||||||
22 | new jobs in Illinois, (iv) retains at least 2,000 jobs | ||||||
23 | in Illinois that would have been at risk of relocation | ||||||
24 | out of Illinois over a 10-year period, and (v) makes a | ||||||
25 | capital investment of at least $75,000,000 ; or . | ||||||
26 | (D) the Taxpayer (i) employed at least 2,500 |
| |||||||
| |||||||
1 | full-time employees in the State during the year in | ||||||
2 | which the Credit is awarded, (ii) commits to make at | ||||||
3 | least $500,000,000 in combined capital improvements | ||||||
4 | and project costs under the Agreement, (iii) applies | ||||||
5 | for an Agreement between January 1, 2011 and June 30, | ||||||
6 | 2011, (iv) executes an Agreement for the Credit during | ||||||
7 | calendar year 2011, and (v) was incorporated no more | ||||||
8 | than 5 years before the filing of an application for an | ||||||
9 | Agreement. | ||||||
10 | (1.5) The election under this subsection (f) may also | ||||||
11 | be made by a Taxpayer for any Credit awarded pursuant to an | ||||||
12 | agreement that was executed between January 1, 2011 and | ||||||
13 | June 30, 2011, if the Taxpayer (i) is primarily engaged in | ||||||
14 | the manufacture of inner tubes or tires, or both, from | ||||||
15 | natural and synthetic rubber, (ii) employs a minimum of | ||||||
16 | 2,400 full-time employees in Illinois at the time of | ||||||
17 | application, (iii) creates at least 350 full-time jobs and | ||||||
18 | retains at least 250 full-time jobs in Illinois that would | ||||||
19 | have been at risk of being created or retained outside of | ||||||
20 | Illinois, and (iv) makes a capital investment of at least | ||||||
21 | $200,000,000 at the project location. | ||||||
22 | (2) An election under this subsection shall allow the | ||||||
23 | credit to be taken against payments otherwise due under | ||||||
24 | Section 704A of the Illinois Income Tax Act during the | ||||||
25 | first calendar year beginning after the end of the taxable | ||||||
26 | year in which the credit is awarded under 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 or | ||||||
23 | its shareholders or partners for the taxable year. | ||||||
24 | (Source: P.A. 95-375, eff. 8-23-07; 96-834, eff. 12-14-09; | ||||||
25 | 96-836, eff. 12-16-09; 96-905, eff. 6-4-10; 96-1000, eff. | ||||||
26 | 7-2-10.)
|
| |||||||
| |||||||
1 | (35 ILCS 10/5-50)
| ||||||
2 | Sec. 5-50. Contents of Agreements with Applicants. The | ||||||
3 | Department shall
enter into an Agreement with an
Applicant that | ||||||
4 | is awarded a Credit under this Act. The Agreement
must include | ||||||
5 | all of the following:
| ||||||
6 | (1) A detailed description of the project that is the | ||||||
7 | subject of the
Agreement, including the location and amount | ||||||
8 | of the investment and jobs created
or retained.
| ||||||
9 | (2) The duration of the Credit and the first taxable | ||||||
10 | year for which
the Credit may be claimed.
| ||||||
11 | (3) The Credit amount that will be allowed for each | ||||||
12 | taxable year.
| ||||||
13 | (4) A requirement that the Taxpayer shall maintain | ||||||
14 | operations at the
project location that shall be stated as | ||||||
15 | a minimum number of years not to
exceed 10.
| ||||||
16 | (5) A specific method for determining the number of New | ||||||
17 | Employees
employed during a taxable year.
| ||||||
18 | (6) A requirement that the Taxpayer shall annually | ||||||
19 | report to the
Department the number of New Employees,
the | ||||||
20 | Incremental Income Tax
withheld in connection with the New | ||||||
21 | Employees, and any other
information the Director needs to | ||||||
22 | perform the Director's duties under
this Act.
| ||||||
23 | (7) A requirement that the Director is authorized to | ||||||
24 | verify with the
appropriate State agencies the amounts | ||||||
25 | reported under paragraph
(6), and after doing so shall |
| |||||||
| |||||||
1 | issue a certificate to the Taxpayer
stating that the | ||||||
2 | amounts have been verified.
| ||||||
3 | (8) A requirement that the Taxpayer shall provide | ||||||
4 | written
notification to the Director not more than 30
days | ||||||
5 | after the Taxpayer makes or receives a proposal that would
| ||||||
6 | transfer the Taxpayer's State tax liability obligations to | ||||||
7 | a
successor Taxpayer.
| ||||||
8 | (9) A detailed description of the number of New | ||||||
9 | Employees to be
hired, and the occupation and
payroll of | ||||||
10 | the full-time jobs to be created or retained as a result of | ||||||
11 | the
project.
| ||||||
12 | (10) The minimum investment the business enterprise | ||||||
13 | will make in
capital improvements, the time period
for | ||||||
14 | placing the property in service, and the designated | ||||||
15 | location in Illinois
for the investment.
| ||||||
16 | (11) A requirement that the Taxpayer shall provide | ||||||
17 | written
notification to the Director and
the Committee not | ||||||
18 | more than 30 days after the Taxpayer determines
that the | ||||||
19 | minimum
job creation or retention, employment payroll, or | ||||||
20 | investment no longer is being
or will be achieved or
| ||||||
21 | maintained as set forth in the terms and conditions of the
| ||||||
22 | Agreement.
| ||||||
23 | (12) A provision that, if the total number of New | ||||||
24 | Employees falls
below a specified level, the
allowance of | ||||||
25 | Credit shall be suspended until the number of New
Employees | ||||||
26 | equals or exceeds
the Agreement amount.
|
| |||||||
| |||||||
1 | (13) A detailed description of the items for which the | ||||||
2 | costs incurred by
the Taxpayer will be included
in the | ||||||
3 | limitation on the Credit provided in Section 5-30.
| ||||||
4 | (13.5) A provision (i) requiring the Taxpayer to | ||||||
5 | maintain, for an agreed upon term lasting beyond the term | ||||||
6 | during which the Credit is received, employment payrolls at | ||||||
7 | a level agreed upon with the Department and (ii) specifying | ||||||
8 | that the Taxpayer must pay the penalty specified in Section | ||||||
9 | 5-67 if it does not maintain employment payrolls at that | ||||||
10 | level for the agreed upon term.
| ||||||
11 | (14) Any other performance conditions or contract | ||||||
12 | provisions as the
Department determines are
appropriate.
| ||||||
13 | (Source: P.A. 91-476, eff. 8-11-99.)
| ||||||
14 | (35 ILCS 10/5-67 new) | ||||||
15 | Sec. 5-67. EDGE employment penalty. If a Taxpayer fails to | ||||||
16 | maintain employment payrolls at the level and for the term | ||||||
17 | specified by agreement under item (13.5) of Section 5-50, then | ||||||
18 | the Taxpayer must pay an administrative penalty to the | ||||||
19 | Department in an amount that the Department shall establish by | ||||||
20 | rule, and shall not, until having paid that penalty in full, be | ||||||
21 | eligible for any credit to offset obligations imposed under the | ||||||
22 | Illinois Income Tax Act. Taxpayers who fail to maintain | ||||||
23 | employment payrolls at the level and for the term specified by | ||||||
24 | agreement under item (13.5) of Section 5-50 due to labor | ||||||
25 | outsourcing to other states, other countries, or both, shall |
| |||||||
| |||||||
1 | pay an additional administrative penalty to the Department in | ||||||
2 | an amount that the Department shall establish by rule. The | ||||||
3 | Department shall deposit into the General Revenue Fund all | ||||||
4 | moneys collected under this Section 5-67, and shall notify the | ||||||
5 | Department of Revenue when a Taxpayer, because of the operation | ||||||
6 | of this Section, becomes ineligible or eligible for credits | ||||||
7 | against obligations imposed under the Illinois Income Tax Act. | ||||||
8 | (35 ILCS 10/5-77 new) | ||||||
9 | Sec. 5-77. Sunset of credits. The application of credits | ||||||
10 | awarded pursuant to this Act shall be limited by a reasonable | ||||||
11 | and appropriate sunset date. A taxpayer shall not be entitled | ||||||
12 | to take a credit awarded pursuant to this Act for tax years | ||||||
13 | beginning on or after 5 years after the effective date of this | ||||||
14 | amendatory Act of the 97th General Assembly. | ||||||
15 | Section 20. The Film
Production Services Tax Credit Act of | ||||||
16 | 2008 is amended by adding Section 42 as follows: | ||||||
17 | (35 ILCS 16/42 new) | ||||||
18 | Sec. 42. Sunset of credits. The application of credits | ||||||
19 | awarded pursuant to this Act shall be limited by a reasonable | ||||||
20 | and appropriate sunset date. A taxpayer shall not be entitled | ||||||
21 | to take a credit awarded pursuant to this Act for tax years | ||||||
22 | beginning on or after 5 years after the effective date of this | ||||||
23 | amendatory Act of the 97th General Assembly. |
| |||||||
| |||||||
1 | Section 25. The Use Tax Act is amended by changing Sections | ||||||
2 | 3-5 and 3-90 as follows:
| ||||||
3 | (35 ILCS 105/3-5)
| ||||||
4 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
5 | personal property
is exempt from the tax imposed by this Act:
| ||||||
6 | (1) Personal property purchased from a corporation, | ||||||
7 | society, association,
foundation, institution, or | ||||||
8 | organization, other than a limited liability
company, that is | ||||||
9 | organized and operated as a not-for-profit service enterprise
| ||||||
10 | for the benefit of persons 65 years of age or older if the | ||||||
11 | personal property
was not purchased by the enterprise for the | ||||||
12 | purpose of resale by the
enterprise.
| ||||||
13 | (2) Personal property purchased by a not-for-profit | ||||||
14 | Illinois county
fair association for use in conducting, | ||||||
15 | operating, or promoting the
county fair.
| ||||||
16 | (3) Personal property purchased by a not-for-profit
arts or | ||||||
17 | cultural organization that establishes, by proof required by | ||||||
18 | the
Department by
rule, that it has received an exemption under | ||||||
19 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
20 | organized and operated primarily for the
presentation
or | ||||||
21 | support of arts or cultural programming, activities, or | ||||||
22 | services. These
organizations include, but are not limited to, | ||||||
23 | music and dramatic arts
organizations such as symphony | ||||||
24 | orchestras and theatrical groups, arts and
cultural service |
| |||||||
| |||||||
1 | organizations, local arts councils, visual arts organizations,
| ||||||
2 | and media arts organizations.
On and after the effective date | ||||||
3 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
4 | an entity otherwise eligible for this exemption shall not
make | ||||||
5 | tax-free purchases unless it has an active identification | ||||||
6 | number issued by
the Department.
| ||||||
7 | (4) Personal property purchased by a governmental body, by | ||||||
8 | a
corporation, society, association, foundation, or | ||||||
9 | institution organized and
operated exclusively for charitable, | ||||||
10 | religious, or educational purposes, or
by a not-for-profit | ||||||
11 | corporation, society, association, foundation,
institution, or | ||||||
12 | organization that has no compensated officers or employees
and | ||||||
13 | that is organized and operated primarily for the recreation of | ||||||
14 | persons
55 years of age or older. A limited liability company | ||||||
15 | may qualify for the
exemption under this paragraph only if the | ||||||
16 | limited liability company is
organized and operated | ||||||
17 | exclusively for educational purposes. On and after July
1, | ||||||
18 | 1987, however, no entity otherwise eligible for this exemption | ||||||
19 | shall make
tax-free purchases unless it has an active exemption | ||||||
20 | identification number
issued by the Department.
| ||||||
21 | (5) Until July 1, 2003, a passenger car that is a | ||||||
22 | replacement vehicle to
the extent that the
purchase price of | ||||||
23 | the car is subject to the Replacement Vehicle Tax.
| ||||||
24 | (6) Until July 1, 2003 and beginning again on September 1, | ||||||
25 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
26 | equipment, including
repair and replacement
parts, both new and |
| |||||||
| |||||||
1 | used, and including that manufactured on special order,
| ||||||
2 | certified by the purchaser to be used primarily for graphic | ||||||
3 | arts production,
and including machinery and equipment | ||||||
4 | purchased for lease.
Equipment includes chemicals or chemicals | ||||||
5 | acting as catalysts but only if
the
chemicals or chemicals | ||||||
6 | acting as catalysts effect a direct and immediate change
upon a | ||||||
7 | graphic arts product.
| ||||||
8 | (7) Farm chemicals.
| ||||||
9 | (8) Legal tender, currency, medallions, or gold or silver | ||||||
10 | coinage issued by
the State of Illinois, the government of the | ||||||
11 | United States of America, or the
government of any foreign | ||||||
12 | country, and bullion.
| ||||||
13 | (9) Personal property purchased from a teacher-sponsored | ||||||
14 | student
organization affiliated with an elementary or | ||||||
15 | secondary school located in
Illinois.
| ||||||
16 | (10) A motor vehicle of the first division, a motor vehicle | ||||||
17 | of the
second division that is a self-contained motor vehicle | ||||||
18 | designed or
permanently converted to provide living quarters | ||||||
19 | for recreational, camping,
or travel use, with direct walk | ||||||
20 | through to the living quarters from the
driver's seat, or a | ||||||
21 | motor vehicle of the second division that is of the
van | ||||||
22 | configuration designed for the transportation of not less than | ||||||
23 | 7 nor
more than 16 passengers, as defined in Section 1-146 of | ||||||
24 | the Illinois
Vehicle Code, that is used for automobile renting, | ||||||
25 | as defined in the
Automobile Renting Occupation and Use Tax | ||||||
26 | Act.
|
| |||||||
| |||||||
1 | (11) Farm machinery and equipment, both new and used,
| ||||||
2 | including that manufactured on special order, certified by the | ||||||
3 | purchaser
to be used primarily for production agriculture or | ||||||
4 | State or federal
agricultural programs, including individual | ||||||
5 | replacement parts for
the machinery and equipment, including | ||||||
6 | machinery and equipment
purchased
for lease,
and including | ||||||
7 | implements of husbandry defined in Section 1-130 of
the | ||||||
8 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
9 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
10 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
11 | but excluding other motor
vehicles required to be
registered | ||||||
12 | under the Illinois Vehicle Code.
Horticultural polyhouses or | ||||||
13 | hoop houses used for propagating, growing, or
overwintering | ||||||
14 | plants shall be considered farm machinery and equipment under
| ||||||
15 | this item (11).
Agricultural chemical tender tanks and dry | ||||||
16 | boxes shall include units sold
separately from a motor vehicle | ||||||
17 | required to be licensed and units sold mounted
on a motor | ||||||
18 | vehicle required to be licensed if the selling price of the | ||||||
19 | tender
is separately stated.
| ||||||
20 | Farm machinery and equipment shall include precision | ||||||
21 | farming equipment
that is
installed or purchased to be | ||||||
22 | installed on farm machinery and equipment
including, but not | ||||||
23 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
24 | or spreaders.
Precision farming equipment includes, but is not | ||||||
25 | limited to, soil testing
sensors, computers, monitors, | ||||||
26 | software, global positioning
and mapping systems, and other |
| |||||||
| |||||||
1 | such equipment.
| ||||||
2 | Farm machinery and equipment also includes computers, | ||||||
3 | sensors, software, and
related equipment used primarily in the
| ||||||
4 | computer-assisted operation of production agriculture | ||||||
5 | facilities, equipment,
and
activities such as, but not limited | ||||||
6 | to,
the collection, monitoring, and correlation of
animal and | ||||||
7 | crop data for the purpose of
formulating animal diets and | ||||||
8 | agricultural chemicals. This item (11) is exempt
from the | ||||||
9 | provisions of
Section 3-90.
| ||||||
10 | (12) Fuel and petroleum products sold to or used by an air | ||||||
11 | common
carrier, certified by the carrier to be used for | ||||||
12 | consumption, shipment, or
storage in the conduct of its | ||||||
13 | business as an air common carrier, for a
flight destined for or | ||||||
14 | returning from a location or locations
outside the United | ||||||
15 | States without regard to previous or subsequent domestic
| ||||||
16 | stopovers.
| ||||||
17 | (13) Proceeds of mandatory service charges separately
| ||||||
18 | stated on customers' bills for the purchase and consumption of | ||||||
19 | food and
beverages purchased at retail from a retailer, to the | ||||||
20 | extent that the proceeds
of the service charge are in fact | ||||||
21 | turned over as tips or as a substitute
for tips to the | ||||||
22 | employees who participate directly in preparing, serving,
| ||||||
23 | hosting or cleaning up the food or beverage function with | ||||||
24 | respect to which
the service charge is imposed.
| ||||||
25 | (14) Until July 1, 2003, oil field exploration, drilling, | ||||||
26 | and production
equipment,
including (i) rigs and parts of rigs, |
| |||||||
| |||||||
1 | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | ||||||
2 | tubular goods,
including casing and drill strings, (iii) pumps | ||||||
3 | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | ||||||
4 | individual replacement part for oil
field exploration, | ||||||
5 | drilling, and production equipment, and (vi) machinery and
| ||||||
6 | equipment purchased
for lease; but excluding motor vehicles | ||||||
7 | required to be registered under the
Illinois Vehicle Code.
| ||||||
8 | (15) Photoprocessing machinery and equipment, including | ||||||
9 | repair and
replacement parts, both new and used, including that
| ||||||
10 | manufactured on special order, certified by the purchaser to be | ||||||
11 | used
primarily for photoprocessing, and including
| ||||||
12 | photoprocessing machinery and equipment purchased for lease.
| ||||||
13 | (16) Until July 1, 2003, coal exploration, mining, | ||||||
14 | offhighway hauling,
processing, maintenance, and reclamation | ||||||
15 | equipment,
including replacement parts and equipment, and
| ||||||
16 | including equipment purchased for lease, but excluding motor
| ||||||
17 | vehicles required to be registered under the Illinois Vehicle | ||||||
18 | Code.
| ||||||
19 | (17) Until July 1, 2003, distillation machinery and | ||||||
20 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
21 | retailer, certified by the user to be used
only for the | ||||||
22 | production of ethyl alcohol that will be used for consumption
| ||||||
23 | as motor fuel or as a component of motor fuel for the personal | ||||||
24 | use of the
user, and not subject to sale or resale.
| ||||||
25 | (18) Manufacturing and assembling machinery and equipment | ||||||
26 | used
primarily in the process of manufacturing or assembling |
| |||||||
| |||||||
1 | tangible
personal property for wholesale or retail sale or | ||||||
2 | lease, whether that sale
or lease is made directly by the | ||||||
3 | manufacturer or by some other person,
whether the materials | ||||||
4 | used in the process are
owned by the manufacturer or some other | ||||||
5 | person, or whether that sale or
lease is made apart from or as | ||||||
6 | an incident to the seller's engaging in
the service occupation | ||||||
7 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
8 | other similar items of no commercial value on
special order for | ||||||
9 | a particular purchaser.
| ||||||
10 | (19) Personal property delivered to a purchaser or | ||||||
11 | purchaser's donee
inside Illinois when the purchase order for | ||||||
12 | that personal property was
received by a florist located | ||||||
13 | outside Illinois who has a florist located
inside Illinois | ||||||
14 | deliver the personal property.
| ||||||
15 | (20) Semen used for artificial insemination of livestock | ||||||
16 | for direct
agricultural production.
| ||||||
17 | (21) 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 (21) is exempt from the provisions | ||||||
23 | of Section 3-90, and the exemption provided for under this item | ||||||
24 | (21) applies for all periods beginning May 30, 1995, but no | ||||||
25 | claim for credit or refund is allowed on or after January 1, | ||||||
26 | 2008
for such taxes paid during the period beginning May 30, |
| |||||||
| |||||||
1 | 2000 and ending on January 1, 2008.
| ||||||
2 | (22) Computers and communications equipment utilized for | ||||||
3 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
4 | analysis, or treatment of hospital patients purchased by a | ||||||
5 | lessor who leases
the
equipment, under a lease of one year or | ||||||
6 | longer executed or in effect at the
time the lessor would | ||||||
7 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
8 | hospital
that has been issued an active tax exemption | ||||||
9 | identification number by
the
Department under Section 1g of the | ||||||
10 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
11 | manner that does not qualify for
this exemption or is used in | ||||||
12 | any other non-exempt manner, the lessor
shall be liable for the
| ||||||
13 | tax imposed under this Act or the Service Use Tax Act, as the | ||||||
14 | case may
be, based on the fair market value of the property at | ||||||
15 | the time the
non-qualifying use occurs. No lessor shall collect | ||||||
16 | or attempt to collect an
amount (however
designated) that | ||||||
17 | purports to reimburse that lessor for the tax imposed by this
| ||||||
18 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
19 | has not been
paid by the lessor. If a lessor improperly | ||||||
20 | collects any such amount from the
lessee, the lessee shall have | ||||||
21 | a legal right to claim a refund of that amount
from the lessor. | ||||||
22 | If, however, that amount is not refunded to the lessee for
any | ||||||
23 | reason, the lessor is liable to pay that amount to the | ||||||
24 | Department.
| ||||||
25 | (23) Personal property purchased by a lessor who leases the
| ||||||
26 | property, under
a
lease of
one year or longer executed or in |
| |||||||
| |||||||
1 | effect at the time
the lessor would otherwise be subject to the | ||||||
2 | tax imposed by this Act,
to a governmental body
that has been | ||||||
3 | issued an active sales tax exemption identification number by | ||||||
4 | the
Department under Section 1g of the Retailers' Occupation | ||||||
5 | Tax Act.
If the
property is leased in a manner that does not | ||||||
6 | qualify for
this exemption
or used in any other non-exempt | ||||||
7 | manner, the lessor shall be liable for the
tax imposed under | ||||||
8 | this Act or the Service Use Tax Act, as the case may
be, based | ||||||
9 | on the fair market value of the property at the time the
| ||||||
10 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
11 | to collect an
amount (however
designated) that purports to | ||||||
12 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
13 | Service Use Tax Act, as the case may be, if the tax has not been
| ||||||
14 | paid by the lessor. If a lessor improperly collects any such | ||||||
15 | amount from the
lessee, the lessee shall have a legal right to | ||||||
16 | claim a refund of that amount
from the lessor. If, however, | ||||||
17 | that amount is not refunded to the lessee for
any reason, the | ||||||
18 | lessor is liable to pay that amount to the Department.
| ||||||
19 | (24) Beginning with taxable years ending on or after | ||||||
20 | December
31, 1995
and
ending with taxable years ending on or | ||||||
21 | before December 31, 2004,
personal property that is
donated for | ||||||
22 | disaster relief to be used in a State or federally declared
| ||||||
23 | disaster area in Illinois or bordering Illinois by a | ||||||
24 | manufacturer or retailer
that is registered in this State to a | ||||||
25 | corporation, society, association,
foundation, or institution | ||||||
26 | that has been issued a sales tax exemption
identification |
| |||||||
| |||||||
1 | number by the Department that assists victims of the disaster
| ||||||
2 | who reside within the declared disaster area.
| ||||||
3 | (25) Beginning with taxable years ending on or after | ||||||
4 | December
31, 1995 and
ending with taxable years ending on or | ||||||
5 | before December 31, 2004, personal
property that is used in the | ||||||
6 | performance of infrastructure repairs in this
State, including | ||||||
7 | but not limited to municipal roads and streets, access roads,
| ||||||
8 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
9 | line extensions,
water distribution and purification | ||||||
10 | facilities, storm water drainage and
retention facilities, and | ||||||
11 | sewage treatment facilities, resulting from a State
or | ||||||
12 | federally declared disaster in Illinois or bordering Illinois | ||||||
13 | when such
repairs are initiated on facilities located in the | ||||||
14 | declared disaster area
within 6 months after the disaster.
| ||||||
15 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
16 | at a "game
breeding
and hunting preserve area" or an "exotic | ||||||
17 | game hunting area" as those terms are
used in
the Wildlife Code | ||||||
18 | or at a hunting enclosure approved through rules adopted by
the
| ||||||
19 | Department of Natural Resources. This paragraph is exempt from | ||||||
20 | the provisions
of
Section 3-90.
| ||||||
21 | (27) A motor vehicle, as that term is defined in Section | ||||||
22 | 1-146
of the
Illinois
Vehicle Code, that is donated to a | ||||||
23 | corporation, limited liability company,
society, association, | ||||||
24 | foundation, or institution that is determined by the
Department | ||||||
25 | to be organized and operated exclusively for educational | ||||||
26 | purposes.
For purposes of this exemption, "a corporation, |
| |||||||
| |||||||
1 | limited liability company,
society, association, foundation, | ||||||
2 | or institution organized and operated
exclusively for | ||||||
3 | educational purposes" means all tax-supported public schools,
| ||||||
4 | private schools that offer systematic instruction in useful | ||||||
5 | branches of
learning by methods common to public schools and | ||||||
6 | that 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 and
| ||||||
9 | operated exclusively to provide a course of study of not less | ||||||
10 | than 6 weeks
duration and designed to prepare individuals to | ||||||
11 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
12 | industrial, business, or commercial
occupation.
| ||||||
13 | (28) Beginning January 1, 2000, personal property, | ||||||
14 | including
food,
purchased through fundraising
events for the | ||||||
15 | benefit of
a public or private elementary or
secondary school, | ||||||
16 | a group of those schools, or one or more school
districts if | ||||||
17 | the events are
sponsored by an entity recognized by the school | ||||||
18 | district that consists
primarily of volunteers and includes
| ||||||
19 | parents and teachers of the school children. This paragraph | ||||||
20 | does not apply
to fundraising
events (i) for the benefit of | ||||||
21 | private home instruction or (ii)
for which the fundraising | ||||||
22 | entity purchases the personal property sold at
the events from | ||||||
23 | another individual or entity that sold the property for the
| ||||||
24 | purpose of resale by the fundraising entity and that
profits | ||||||
25 | from the sale to the
fundraising entity. This paragraph is | ||||||
26 | exempt
from the provisions
of Section 3-90.
|
| |||||||
| |||||||
1 | (29) Beginning January 1, 2000 and through December 31, | ||||||
2 | 2001, new or
used automatic vending
machines that prepare and | ||||||
3 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
4 | items, and replacement parts for these machines.
Beginning | ||||||
5 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
6 | for machines used in
commercial, coin-operated amusement and | ||||||
7 | vending business if a use or occupation
tax is paid on the | ||||||
8 | gross receipts derived from the use of the commercial,
| ||||||
9 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
10 | is exempt from the provisions of Section 3-90.
| ||||||
11 | (30) Beginning January 1, 2001 and through June 30, 2011, | ||||||
12 | food for human consumption that is to be consumed off the | ||||||
13 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
14 | drinks, and food that
has been prepared for immediate | ||||||
15 | consumption) and prescription and
nonprescription medicines, | ||||||
16 | drugs, medical appliances, and insulin, urine
testing | ||||||
17 | materials, syringes, and needles used by diabetics, for human | ||||||
18 | use, when
purchased for use by a person receiving medical | ||||||
19 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
20 | resides in a licensed long-term care facility,
as defined in | ||||||
21 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
22 | in the MR/DD Community Care Act.
| ||||||
23 | (31) Beginning on
the effective date of this amendatory Act | ||||||
24 | of the 92nd General Assembly,
computers and communications | ||||||
25 | equipment
utilized for any hospital purpose and equipment used | ||||||
26 | in the diagnosis,
analysis, or treatment of hospital patients |
| |||||||
| |||||||
1 | purchased by a lessor who leases
the equipment, under a lease | ||||||
2 | of one year or longer executed or in effect at the
time the | ||||||
3 | lessor would otherwise be subject to the tax imposed by this | ||||||
4 | Act, to a
hospital that has been issued an active tax exemption | ||||||
5 | identification number by
the Department under Section 1g of the | ||||||
6 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
7 | manner that does not qualify for this exemption or is
used in | ||||||
8 | any other nonexempt manner, the lessor shall be liable for the | ||||||
9 | tax
imposed under this Act or the Service Use Tax Act, as the | ||||||
10 | case may be, based on
the fair market value of the property at | ||||||
11 | the time the nonqualifying use
occurs. No lessor shall collect | ||||||
12 | or attempt to collect an amount (however
designated) that | ||||||
13 | purports to reimburse that lessor for the tax imposed by this
| ||||||
14 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
15 | has not been
paid by the lessor. If a lessor improperly | ||||||
16 | collects any such amount from the
lessee, the lessee shall have | ||||||
17 | a legal right to claim a refund of that amount
from the lessor. | ||||||
18 | If, however, that amount is not refunded to the lessee for
any | ||||||
19 | reason, the lessor is liable to pay that amount to the | ||||||
20 | Department.
This paragraph is exempt from the provisions of | ||||||
21 | Section 3-90.
| ||||||
22 | (32) Beginning on
the effective date of this amendatory Act | ||||||
23 | of the 92nd General Assembly,
personal property purchased by a | ||||||
24 | lessor who leases the property,
under a lease of one year or | ||||||
25 | longer executed or in effect at the time the
lessor would | ||||||
26 | otherwise be subject to the tax imposed by this Act, to a
|
| |||||||
| |||||||
1 | governmental body that has been issued an active sales tax | ||||||
2 | exemption
identification number by the Department under | ||||||
3 | Section 1g of the Retailers'
Occupation Tax Act. If the | ||||||
4 | property is leased in a manner that does not
qualify for this | ||||||
5 | exemption or used in any other nonexempt manner, the lessor
| ||||||
6 | shall be liable for the tax imposed under this Act or the | ||||||
7 | Service Use Tax Act,
as the case may be, based on the fair | ||||||
8 | market value of the property at the time
the nonqualifying use | ||||||
9 | occurs. No lessor shall collect or attempt to collect
an amount | ||||||
10 | (however designated) that purports to reimburse that lessor for | ||||||
11 | the
tax imposed by this Act or the Service Use Tax Act, as the | ||||||
12 | case may be, if the
tax has not been paid by the lessor. If a | ||||||
13 | lessor improperly collects any such
amount from the lessee, the | ||||||
14 | lessee shall have a legal right to claim a refund
of that | ||||||
15 | amount from the lessor. If, however, that amount is not | ||||||
16 | refunded to
the lessee for any reason, the lessor is liable to | ||||||
17 | pay that amount to the
Department. This paragraph is exempt | ||||||
18 | from the provisions of Section 3-90.
| ||||||
19 | (33) On and after July 1, 2003 and through June 30, 2004, | ||||||
20 | the use in this State of motor vehicles of
the second division | ||||||
21 | with a gross vehicle weight in excess of 8,000 pounds and
that | ||||||
22 | are subject to the commercial distribution fee imposed under | ||||||
23 | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | ||||||
24 | 1, 2004 and through June 30, 2005, the use in this State of | ||||||
25 | motor vehicles of the second division: (i) with a gross vehicle | ||||||
26 | weight rating in excess of 8,000 pounds; (ii) that are subject |
| |||||||
| |||||||
1 | to the commercial distribution fee imposed under Section | ||||||
2 | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | ||||||
3 | primarily used for commercial purposes. Through June 30, 2005, | ||||||
4 | this exemption applies to repair and
replacement parts added | ||||||
5 | after the initial purchase of such a motor vehicle if
that | ||||||
6 | motor
vehicle is used in a manner that would qualify for the | ||||||
7 | rolling stock exemption
otherwise provided for in this Act. For | ||||||
8 | purposes of this paragraph, the term "used for commercial | ||||||
9 | purposes" means the transportation of persons or property in | ||||||
10 | furtherance of any commercial or industrial enterprise, | ||||||
11 | whether for-hire or not.
| ||||||
12 | (34) Beginning January 1, 2008, tangible personal property | ||||||
13 | used in the construction or maintenance of a community water | ||||||
14 | supply, as defined under Section 3.145 of the Environmental | ||||||
15 | Protection Act, that is operated by a not-for-profit | ||||||
16 | corporation that holds a valid water supply permit issued under | ||||||
17 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
18 | exempt from the provisions of Section 3-90. | ||||||
19 | (35) Beginning January 1, 2010, materials, parts, | ||||||
20 | equipment, components, and furnishings incorporated into or | ||||||
21 | upon an aircraft as part of the modification, refurbishment, | ||||||
22 | completion, replacement, repair, or maintenance of the | ||||||
23 | aircraft. This exemption includes consumable supplies used in | ||||||
24 | the modification, refurbishment, completion, replacement, | ||||||
25 | repair, and maintenance of aircraft, but excludes any | ||||||
26 | materials, parts, equipment, components, and consumable |
| |||||||
| |||||||
1 | supplies used in the modification, replacement, repair, and | ||||||
2 | maintenance of aircraft engines or power plants, whether such | ||||||
3 | engines or power plants are installed or uninstalled upon any | ||||||
4 | such aircraft. "Consumable supplies" include, but are not | ||||||
5 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
6 | lubricants, cleaning solution, latex gloves, and protective | ||||||
7 | films. This exemption applies only to those organizations that | ||||||
8 | (i) hold an Air Agency Certificate and are empowered to operate | ||||||
9 | an approved repair station by the Federal Aviation | ||||||
10 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
11 | operations in accordance with Part 145 of the Federal Aviation | ||||||
12 | Regulations. The exemption does not include aircraft operated | ||||||
13 | by a commercial air carrier providing scheduled passenger air | ||||||
14 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
15 | of the Federal Aviation Regulations. | ||||||
16 | (36) Tangible personal property purchased by a | ||||||
17 | public-facilities corporation, as described in Section | ||||||
18 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
19 | constructing or furnishing a municipal convention hall, but | ||||||
20 | only if the legal title to the municipal convention hall is | ||||||
21 | transferred to the municipality without any further | ||||||
22 | consideration by or on behalf of the municipality at the time | ||||||
23 | of the completion of the municipal convention hall or upon the | ||||||
24 | retirement or redemption of any bonds or other debt instruments | ||||||
25 | issued by the public-facilities corporation in connection with | ||||||
26 | the development of the municipal convention hall. This |
| |||||||
| |||||||
1 | exemption includes existing public-facilities corporations as | ||||||
2 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
3 | This paragraph is exempt from the provisions of Section 3-90. | ||||||
4 | (Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876, | ||||||
5 | eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; | ||||||
6 | 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. | ||||||
7 | 7-2-10.)
| ||||||
8 | (35 ILCS 105/3-90)
| ||||||
9 | Sec. 3-90. Sunset of exemptions, credits, and deductions. | ||||||
10 | The application
of every exemption, credit, and deduction | ||||||
11 | against tax imposed by this Act that
becomes law after the | ||||||
12 | effective date of this amendatory Act of 1994 shall be
limited | ||||||
13 | by a reasonable and appropriate sunset date. A taxpayer is not
| ||||||
14 | entitled to take the exemption, credit, or deduction beginning | ||||||
15 | on the sunset
date and thereafter. If a reasonable and | ||||||
16 | appropriate sunset date is not
specified in the Public Act that | ||||||
17 | creates the exemption, credit, or deduction, a
taxpayer shall | ||||||
18 | not be entitled to take the exemption, credit, or deduction
| ||||||
19 | beginning 5 years after the effective date of the Public Act | ||||||
20 | creating the
exemption, credit, or deduction and thereafter. No | ||||||
21 | exemption, credit, or deduction against a tax imposed by this | ||||||
22 | Act that was in effect prior to September 16, 1994 (the | ||||||
23 | effective date of Public Act 88-660) may be taken on or after | ||||||
24 | December 31, 2012 unless a different sunset date is stated in | ||||||
25 | the provision setting forth the exemption, credit, or |
| |||||||
| |||||||
1 | deduction.
| ||||||
2 | (Source: P.A. 88-660, eff. 9-16-94; 89-235, eff.
8-4-95.)
| ||||||
3 | Section 30. The Service Use Tax Act is amended by changing | ||||||
4 | Sections 3-5 and 3-75 as follows:
| ||||||
5 | (35 ILCS 110/3-5)
| ||||||
6 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
7 | personal property
is exempt from the tax imposed by this Act:
| ||||||
8 | (1) Personal property purchased from a corporation, | ||||||
9 | society,
association, foundation, institution, or | ||||||
10 | organization, other than a limited
liability company, that is | ||||||
11 | organized and operated as a not-for-profit service
enterprise | ||||||
12 | for the benefit of persons 65 years of age or older if the | ||||||
13 | personal
property was not purchased by the enterprise for the | ||||||
14 | purpose of resale by the
enterprise.
| ||||||
15 | (2) Personal property purchased by a non-profit Illinois | ||||||
16 | county fair
association for use in conducting, operating, or | ||||||
17 | promoting the county fair.
| ||||||
18 | (3) Personal property purchased by a not-for-profit arts
or | ||||||
19 | cultural
organization that establishes, by proof required by | ||||||
20 | the Department by rule,
that it has received an exemption under | ||||||
21 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
22 | organized and operated primarily for the
presentation
or | ||||||
23 | support of arts or cultural programming, activities, or | ||||||
24 | 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 the effective date | ||||||
5 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
6 | an entity otherwise eligible for this exemption shall not
make | ||||||
7 | tax-free purchases unless it has an active identification | ||||||
8 | number issued by
the Department.
| ||||||
9 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
10 | coinage issued
by the State of Illinois, the government of the | ||||||
11 | United States of America,
or the government of any foreign | ||||||
12 | country, and bullion.
| ||||||
13 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
14 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
15 | equipment, including
repair and
replacement parts, both new and | ||||||
16 | used, and including that manufactured on
special order or | ||||||
17 | purchased for lease, certified by the purchaser to be used
| ||||||
18 | primarily for graphic arts production.
Equipment includes | ||||||
19 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
20 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
21 | immediate
change upon a graphic arts product.
| ||||||
22 | (6) Personal property purchased from a teacher-sponsored | ||||||
23 | student
organization affiliated with an elementary or | ||||||
24 | secondary school located
in Illinois.
| ||||||
25 | (7) Farm machinery and equipment, both new and used, | ||||||
26 | including that
manufactured on special order, certified by the |
| |||||||
| |||||||
1 | purchaser to be used
primarily for production agriculture or | ||||||
2 | State or federal agricultural
programs, including individual | ||||||
3 | replacement parts for the machinery and
equipment, including | ||||||
4 | machinery and equipment purchased for lease,
and including | ||||||
5 | implements of husbandry defined in Section 1-130 of
the | ||||||
6 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
7 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
8 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
9 | but
excluding other motor vehicles required to be registered | ||||||
10 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
11 | hoop houses used for propagating, growing, or
overwintering | ||||||
12 | plants shall be considered farm machinery and equipment under
| ||||||
13 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
14 | shall include units sold
separately from a motor vehicle | ||||||
15 | required to be licensed and units sold mounted
on a motor | ||||||
16 | vehicle required to be licensed if the selling price of the | ||||||
17 | tender
is separately stated.
| ||||||
18 | Farm machinery and equipment shall include precision | ||||||
19 | farming equipment
that is
installed or purchased to be | ||||||
20 | installed on farm machinery and equipment
including, but not | ||||||
21 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
22 | or spreaders.
Precision farming equipment includes, but is not | ||||||
23 | limited to,
soil testing sensors, computers, monitors, | ||||||
24 | software, global positioning
and mapping systems, and other | ||||||
25 | such equipment.
| ||||||
26 | Farm machinery and equipment also includes computers, |
| |||||||
| |||||||
1 | sensors, software, and
related equipment used primarily in the
| ||||||
2 | computer-assisted operation of production agriculture | ||||||
3 | facilities, equipment,
and activities such as, but
not limited | ||||||
4 | to,
the collection, monitoring, and correlation of
animal and | ||||||
5 | crop data for the purpose of
formulating animal diets and | ||||||
6 | agricultural chemicals. This item (7) is exempt
from the | ||||||
7 | provisions of
Section 3-75.
| ||||||
8 | (8) Fuel and petroleum products sold to or used by an air | ||||||
9 | common
carrier, certified by the carrier to be used for | ||||||
10 | consumption, shipment, or
storage in the conduct of its | ||||||
11 | business as an air common carrier, for a
flight destined for or | ||||||
12 | returning from a location or locations
outside the United | ||||||
13 | States without regard to previous or subsequent domestic
| ||||||
14 | stopovers.
| ||||||
15 | (9) Proceeds of mandatory service charges separately | ||||||
16 | stated on
customers' bills for the purchase and consumption of | ||||||
17 | food and beverages
acquired as an incident to the purchase of a | ||||||
18 | service from a serviceman, to
the extent that the proceeds of | ||||||
19 | the service charge are in fact
turned over as tips or as a | ||||||
20 | substitute for tips to the employees who
participate directly | ||||||
21 | in preparing, serving, hosting or cleaning up the
food or | ||||||
22 | beverage function with respect to which the service charge is | ||||||
23 | imposed.
| ||||||
24 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
25 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
26 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and |
| |||||||
| |||||||
1 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
2 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
3 | individual replacement part for oil field exploration,
| ||||||
4 | drilling, and production equipment, and (vi) machinery and | ||||||
5 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
6 | required to be registered under the Illinois
Vehicle Code.
| ||||||
7 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
8 | and
equipment, including repair and replacement parts, both new | ||||||
9 | 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, 2003, coal exploration, mining, | ||||||
14 | offhighway hauling,
processing,
maintenance, and reclamation | ||||||
15 | equipment, including
replacement parts and equipment, and | ||||||
16 | including
equipment purchased for lease, but excluding motor | ||||||
17 | vehicles required to be
registered under the Illinois Vehicle | ||||||
18 | Code.
| ||||||
19 | (13) Semen used for artificial insemination of livestock | ||||||
20 | for direct
agricultural production.
| ||||||
21 | (14) Horses, or interests in horses, registered with and | ||||||
22 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
23 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
24 | Horse Association, United States
Trotting Association, or | ||||||
25 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
26 | racing for prizes. This item (14) is exempt from the provisions |
| |||||||
| |||||||
1 | of Section 3-75, and the exemption provided for under this item | ||||||
2 | (14) applies for all periods beginning May 30, 1995, but no | ||||||
3 | claim for credit or refund is allowed on or after the effective | ||||||
4 | date of this amendatory Act of the 95th General Assembly for | ||||||
5 | such taxes paid during the period beginning May 30, 2000 and | ||||||
6 | ending on the effective date of this amendatory Act of the 95th | ||||||
7 | General Assembly.
| ||||||
8 | (15) 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 the | ||||||
16 | Retailers' Occupation Tax Act.
If the
equipment is leased in a | ||||||
17 | manner that does not qualify for
this exemption
or is used in | ||||||
18 | any other non-exempt manner,
the lessor shall be liable for the
| ||||||
19 | tax imposed under this Act or the Use Tax Act, as the case may
| ||||||
20 | be, based on the fair market value of the property at the time | ||||||
21 | the
non-qualifying use occurs. No lessor shall collect or | ||||||
22 | attempt to collect an
amount (however
designated) that purports | ||||||
23 | to 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 by | ||||||
25 | 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 amount | ||||||
2 | is not refunded to the lessee for
any reason, the lessor is | ||||||
3 | liable to pay that amount to the Department.
| ||||||
4 | (16) Personal property purchased by a lessor who leases the
| ||||||
5 | property, under
a
lease of one year or longer executed or in | ||||||
6 | effect at the time
the lessor would otherwise be subject to the | ||||||
7 | tax imposed by this Act,
to a governmental body
that has been | ||||||
8 | issued an active tax exemption identification number by the
| ||||||
9 | Department under Section 1g of the Retailers' Occupation Tax | ||||||
10 | Act.
If the
property is leased in a manner that does not | ||||||
11 | qualify for
this exemption
or is used in any other non-exempt | ||||||
12 | manner,
the lessor shall be liable for the
tax imposed under | ||||||
13 | this Act or the Use Tax Act, as the case may
be, based on the | ||||||
14 | fair market value of the property at the time the
| ||||||
15 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
16 | to collect an
amount (however
designated) that purports to | ||||||
17 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
18 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
19 | the lessor. If a lessor improperly collects any such amount | ||||||
20 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
21 | refund of that amount
from the lessor. If, however, that amount | ||||||
22 | is not refunded to the lessee for
any reason, the lessor is | ||||||
23 | liable to pay that amount to the Department.
| ||||||
24 | (17) Beginning with taxable years ending on or after | ||||||
25 | December
31,
1995
and
ending with taxable years ending on or | ||||||
26 | before December 31, 2004,
personal property that is
donated for |
| |||||||
| |||||||
1 | disaster relief to be used in a State or federally declared
| ||||||
2 | disaster area in Illinois or bordering Illinois by a | ||||||
3 | manufacturer or retailer
that is registered in this State to a | ||||||
4 | corporation, society, association,
foundation, or institution | ||||||
5 | that has been issued a sales tax exemption
identification | ||||||
6 | number by the Department that assists victims of the disaster
| ||||||
7 | who reside within the declared disaster area.
| ||||||
8 | (18) Beginning with taxable years ending on or after | ||||||
9 | December
31, 1995 and
ending with taxable years ending on or | ||||||
10 | before December 31, 2004, personal
property that is used in the | ||||||
11 | performance of infrastructure repairs in this
State, including | ||||||
12 | but not limited to municipal roads and streets, access roads,
| ||||||
13 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
14 | line extensions,
water distribution and purification | ||||||
15 | facilities, storm water drainage and
retention facilities, and | ||||||
16 | sewage treatment facilities, resulting from a State
or | ||||||
17 | federally declared disaster in Illinois or bordering Illinois | ||||||
18 | when such
repairs are initiated on facilities located in the | ||||||
19 | declared disaster area
within 6 months after the disaster.
| ||||||
20 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
21 | at a "game
breeding
and hunting preserve area" or an "exotic | ||||||
22 | game hunting area" as those terms are
used in
the Wildlife Code | ||||||
23 | or at a hunting enclosure approved through rules adopted by
the
| ||||||
24 | Department of Natural Resources. This paragraph is exempt from | ||||||
25 | the provisions
of
Section 3-75.
| ||||||
26 | (20) A motor vehicle, as that term is defined in Section |
| |||||||
| |||||||
1 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
2 | corporation, limited liability
company, society, association, | ||||||
3 | foundation, or institution that is determined by
the Department | ||||||
4 | to be organized and operated exclusively for educational
| ||||||
5 | purposes. For purposes of this exemption, "a corporation, | ||||||
6 | limited liability
company, society, association, foundation, | ||||||
7 | or institution organized and
operated
exclusively for | ||||||
8 | educational purposes" means all tax-supported public schools,
| ||||||
9 | private schools that offer systematic instruction in useful | ||||||
10 | branches of
learning by methods common to public schools and | ||||||
11 | that compare favorably in
their scope and intensity with the | ||||||
12 | course of study presented in tax-supported
schools, and | ||||||
13 | vocational or technical schools or institutes organized and
| ||||||
14 | operated exclusively to provide a course of study of not less | ||||||
15 | than 6 weeks
duration and designed to prepare individuals to | ||||||
16 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
17 | industrial, business, or commercial
occupation.
| ||||||
18 | (21) Beginning January 1, 2000, personal property, | ||||||
19 | including
food,
purchased through fundraising
events for the | ||||||
20 | benefit of
a public or private elementary or
secondary school, | ||||||
21 | a group of those schools, or one or more school
districts if | ||||||
22 | the events are
sponsored by an entity recognized by the school | ||||||
23 | district that consists
primarily of volunteers and includes
| ||||||
24 | parents and teachers of the school children. This paragraph | ||||||
25 | does not apply
to fundraising
events (i) for the benefit of | ||||||
26 | private home instruction or (ii)
for which the fundraising |
| |||||||
| |||||||
1 | entity purchases the personal property sold at
the events from | ||||||
2 | another individual or entity that sold the property for the
| ||||||
3 | purpose of resale by the fundraising entity and that
profits | ||||||
4 | from the sale to the
fundraising entity. This paragraph is | ||||||
5 | exempt
from the provisions
of Section 3-75.
| ||||||
6 | (22) Beginning January 1, 2000
and through December 31, | ||||||
7 | 2001, new or used automatic vending
machines that prepare and | ||||||
8 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
9 | items, and replacement parts for these machines.
Beginning | ||||||
10 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
11 | for machines used in
commercial, coin-operated
amusement
and | ||||||
12 | vending business if a use or occupation tax is paid on the | ||||||
13 | gross receipts
derived from
the use of the commercial, | ||||||
14 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
15 | is exempt from the provisions of Section 3-75.
| ||||||
16 | (23) Beginning August 23, 2001 and through June 30, 2011, | ||||||
17 | food for human consumption that is to be consumed off the
| ||||||
18 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
19 | drinks, and food that
has been prepared for immediate | ||||||
20 | consumption) and prescription and
nonprescription medicines, | ||||||
21 | drugs, medical appliances, and insulin, urine
testing | ||||||
22 | materials, syringes, and needles used by diabetics, for human | ||||||
23 | use, when
purchased for use by a person receiving medical | ||||||
24 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
25 | resides in a licensed long-term care facility,
as defined in | ||||||
26 | the Nursing Home Care Act, or in a licensed facility as defined |
| |||||||
| |||||||
1 | in the MR/DD Community Care Act.
| ||||||
2 | (24) Beginning on the effective date of this amendatory Act | ||||||
3 | of the 92nd
General Assembly, computers and communications | ||||||
4 | equipment
utilized for any hospital purpose and equipment used | ||||||
5 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
6 | purchased by a lessor who leases
the equipment, under a lease | ||||||
7 | of one year or longer executed or in effect at the
time the | ||||||
8 | lessor would otherwise be subject to the tax imposed by this | ||||||
9 | Act, to a
hospital that has been issued an active tax exemption | ||||||
10 | identification number by
the Department under Section 1g of the | ||||||
11 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
12 | manner that does not qualify for this exemption or is
used in | ||||||
13 | any other nonexempt manner, the lessor shall be liable for the
| ||||||
14 | tax imposed under this Act or the Use Tax Act, as the case may | ||||||
15 | be, based on the
fair market value of the property at the time | ||||||
16 | the nonqualifying use occurs.
No lessor shall collect or | ||||||
17 | attempt to collect an amount (however
designated) that purports | ||||||
18 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
19 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
20 | the lessor. If a lessor improperly collects any such amount | ||||||
21 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
22 | refund of that amount
from the lessor. If, however, that amount | ||||||
23 | is not refunded to the lessee for
any reason, the lessor is | ||||||
24 | liable to pay that amount to the Department.
This paragraph is | ||||||
25 | exempt from the provisions of Section 3-75.
| ||||||
26 | (25) Beginning
on the effective date of this amendatory Act |
| |||||||
| |||||||
1 | of the 92nd General Assembly,
personal property purchased by a | ||||||
2 | lessor
who leases the property, under a lease of one year or | ||||||
3 | longer executed or in
effect at the time the lessor would | ||||||
4 | otherwise be subject to the tax imposed by
this Act, to a | ||||||
5 | governmental body that has been issued an active tax exemption
| ||||||
6 | identification number by the Department under Section 1g of the | ||||||
7 | Retailers'
Occupation Tax Act. If the property is leased in a | ||||||
8 | manner that does not
qualify for this exemption or is used in | ||||||
9 | any other nonexempt manner, the
lessor shall be liable for the | ||||||
10 | tax imposed under this Act or the Use Tax Act,
as the case may | ||||||
11 | be, based on the fair market value of the property at the time
| ||||||
12 | the nonqualifying use occurs. No lessor shall collect or | ||||||
13 | attempt to collect
an amount (however designated) that purports | ||||||
14 | to 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 by | ||||||
16 | 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 amount | ||||||
19 | is not refunded to the lessee
for any reason, the lessor is | ||||||
20 | liable to pay that amount to the Department.
This paragraph is | ||||||
21 | exempt from the provisions of Section 3-75.
| ||||||
22 | (26) Beginning January 1, 2008, tangible personal property | ||||||
23 | used in the construction or maintenance of a community water | ||||||
24 | supply, as defined under Section 3.145 of the Environmental | ||||||
25 | Protection Act, that is operated by a not-for-profit | ||||||
26 | corporation that holds a valid water supply permit issued under |
| |||||||
| |||||||
1 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
2 | exempt from the provisions of Section 3-75.
| ||||||
3 | (27) Beginning January 1, 2010, 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, but excludes any | ||||||
10 | materials, parts, equipment, components, and consumable | ||||||
11 | supplies used in the modification, replacement, repair, and | ||||||
12 | maintenance of aircraft engines or power plants, whether such | ||||||
13 | engines or power plants are installed or uninstalled upon any | ||||||
14 | such aircraft. "Consumable supplies" include, but are not | ||||||
15 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
16 | lubricants, cleaning solution, latex gloves, and protective | ||||||
17 | films. This exemption applies only to those organizations that | ||||||
18 | (i) hold an Air Agency Certificate and are empowered to operate | ||||||
19 | an approved repair station by the Federal Aviation | ||||||
20 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
21 | operations in accordance with Part 145 of the Federal Aviation | ||||||
22 | Regulations. The exemption does not include aircraft operated | ||||||
23 | by a commercial air carrier providing scheduled passenger air | ||||||
24 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
25 | of the Federal Aviation Regulations. | ||||||
26 | (28) Tangible personal property purchased by a |
| |||||||
| |||||||
1 | public-facilities corporation, as described in Section | ||||||
2 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
3 | constructing or furnishing a municipal convention hall, but | ||||||
4 | only if the legal title to the municipal convention hall is | ||||||
5 | transferred to the municipality without any further | ||||||
6 | consideration by or on behalf of the municipality at the time | ||||||
7 | of the completion of the municipal convention hall or upon the | ||||||
8 | retirement or redemption of any bonds or other debt instruments | ||||||
9 | issued by the public-facilities corporation in connection with | ||||||
10 | the development of the municipal convention hall. This | ||||||
11 | exemption includes existing public-facilities corporations as | ||||||
12 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
13 | This paragraph is exempt from the provisions of Section 3-75. | ||||||
14 | (Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876, | ||||||
15 | eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; | ||||||
16 | 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. | ||||||
17 | 7-2-10.)
| ||||||
18 | (35 ILCS 110/3-75)
| ||||||
19 | Sec. 3-75. Sunset of exemptions, credits, and deductions. | ||||||
20 | The application
of every exemption, credit, and deduction | ||||||
21 | against tax imposed by this Act that
becomes law after the | ||||||
22 | effective date of this amendatory Act of 1994 shall be
limited | ||||||
23 | by a reasonable and appropriate sunset date. A taxpayer is not
| ||||||
24 | entitled to take the exemption, credit, or deduction beginning | ||||||
25 | on the sunset
date and thereafter. If a reasonable and |
| |||||||
| |||||||
1 | appropriate sunset date is not
specified in the Public Act that | ||||||
2 | creates the exemption, credit, or deduction, a
taxpayer shall | ||||||
3 | not be entitled to take the exemption, credit, or deduction
| ||||||
4 | beginning 5 years after the effective date of the Public Act | ||||||
5 | creating the
exemption, credit, or deduction and thereafter. No | ||||||
6 | exemption, credit, or deduction against a tax imposed by this | ||||||
7 | Act that was in effect prior to September 16, 1994 (the | ||||||
8 | effective date of Public Act 88-660) may be taken on or after | ||||||
9 | December 31, 2012 unless a different sunset date is stated in | ||||||
10 | the provision setting forth the exemption, credit, or | ||||||
11 | deduction.
| ||||||
12 | (Source: P.A. 88-660, eff. 9-16-94; 89-235, eff.
8-4-95.)
| ||||||
13 | Section 35. The Service Occupation Tax Act is amended by | ||||||
14 | changing Sections 3-5 and 3-55 as follows:
| ||||||
15 | (35 ILCS 115/3-5)
| ||||||
16 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
17 | property is
exempt from the tax imposed by this Act:
| ||||||
18 | (1) Personal property sold by a corporation, society, | ||||||
19 | association,
foundation, institution, or organization, other | ||||||
20 | than a limited liability
company, that is organized and | ||||||
21 | operated as a not-for-profit service enterprise
for the benefit | ||||||
22 | of persons 65 years of age or older if the personal property
| ||||||
23 | was not purchased by the enterprise for the purpose of resale | ||||||
24 | by the
enterprise.
|
| |||||||
| |||||||
1 | (2) Personal property purchased by a not-for-profit | ||||||
2 | Illinois county fair
association for use in conducting, | ||||||
3 | operating, or promoting the county fair.
| ||||||
4 | (3) Personal property purchased by any not-for-profit
arts | ||||||
5 | or cultural organization that establishes, by proof required by | ||||||
6 | the
Department by
rule, that it has received an exemption under | ||||||
7 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
8 | organized and operated primarily for the
presentation
or | ||||||
9 | support of arts or cultural programming, activities, or | ||||||
10 | services. These
organizations include, but are not limited to, | ||||||
11 | music and dramatic arts
organizations such as symphony | ||||||
12 | orchestras and theatrical groups, arts and
cultural service | ||||||
13 | organizations, local arts councils, visual arts organizations,
| ||||||
14 | and media arts organizations.
On and after the effective date | ||||||
15 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
16 | an entity otherwise eligible for this exemption shall not
make | ||||||
17 | tax-free purchases unless it has an active identification | ||||||
18 | number issued by
the Department.
| ||||||
19 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
20 | coinage
issued by the State of Illinois, the government of the | ||||||
21 | United States of
America, or the government of any foreign | ||||||
22 | country, and bullion.
| ||||||
23 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
24 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
25 | equipment, including
repair and
replacement parts, both new and | ||||||
26 | used, and including that manufactured on
special order or |
| |||||||
| |||||||
1 | purchased for lease, certified by the purchaser to be used
| ||||||
2 | primarily for graphic arts production.
Equipment includes | ||||||
3 | chemicals or chemicals acting as catalysts but only if
the
| ||||||
4 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
5 | immediate change
upon a graphic arts product.
| ||||||
6 | (6) Personal property sold by a teacher-sponsored student | ||||||
7 | organization
affiliated with an elementary or secondary school | ||||||
8 | located in Illinois.
| ||||||
9 | (7) Farm machinery and equipment, both new and used, | ||||||
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 to | ||||||
18 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
19 | but
excluding other motor vehicles required to be registered | ||||||
20 | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | ||||||
21 | hoop houses used for propagating, growing, or
overwintering | ||||||
22 | plants shall be considered farm machinery and equipment under
| ||||||
23 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
24 | shall include units sold
separately from a motor vehicle | ||||||
25 | required to be licensed and units sold mounted
on a motor | ||||||
26 | vehicle required to be licensed if the selling price of the |
| |||||||
| |||||||
1 | tender
is separately stated.
| ||||||
2 | Farm machinery and equipment shall include precision | ||||||
3 | farming equipment
that is
installed or purchased to be | ||||||
4 | installed on farm machinery and equipment
including, but 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.
| ||||||
10 | Farm machinery and equipment also includes computers, | ||||||
11 | sensors, software, and
related equipment used primarily in the
| ||||||
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 (7) is exempt
from the | ||||||
17 | provisions of
Section 3-55.
| ||||||
18 | (8) Fuel and petroleum products sold to or used by an air | ||||||
19 | common
carrier, certified by the carrier to be used for | ||||||
20 | consumption, shipment,
or storage in the conduct of its | ||||||
21 | business as an air common carrier, for
a flight destined for or | ||||||
22 | returning from a location or locations
outside the United | ||||||
23 | States without regard to previous or subsequent domestic
| ||||||
24 | stopovers.
| ||||||
25 | (9) Proceeds of mandatory service charges separately
| ||||||
26 | stated on customers' bills for the purchase and consumption of |
| |||||||
| |||||||
1 | food and
beverages, to the extent that the proceeds of the | ||||||
2 | service charge are in fact
turned over as tips or as a | ||||||
3 | substitute for tips to the employees who
participate directly | ||||||
4 | in preparing, serving, hosting or cleaning up the
food or | ||||||
5 | beverage function with respect to which the service charge is | ||||||
6 | imposed.
| ||||||
7 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
8 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
9 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
10 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
11 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
12 | individual replacement part for oil field exploration,
| ||||||
13 | drilling, and production equipment, and (vi) machinery and | ||||||
14 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
15 | required to be registered under the Illinois
Vehicle Code.
| ||||||
16 | (11) Photoprocessing machinery and equipment, including | ||||||
17 | repair and
replacement parts, both new and used, including that | ||||||
18 | manufactured on
special order, certified by the purchaser to be | ||||||
19 | used primarily for
photoprocessing, and including | ||||||
20 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
21 | (12) Until July 1, 2003, coal exploration, mining, | ||||||
22 | offhighway hauling,
processing,
maintenance, and reclamation | ||||||
23 | equipment, including
replacement parts and equipment, and | ||||||
24 | including
equipment
purchased for lease, but excluding motor | ||||||
25 | vehicles required to be registered
under the Illinois Vehicle | ||||||
26 | Code.
|
| |||||||
| |||||||
1 | (13) Beginning January 1, 1992 and through June 30, 2011, | ||||||
2 | food for human consumption that is to be consumed off the | ||||||
3 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
4 | drinks and food that
has been prepared for immediate | ||||||
5 | consumption) and prescription and
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 MR/DD Community Care Act.
| ||||||
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 provisions | ||||||
21 | of Section 3-55, and the exemption provided for under this item | ||||||
22 | (15) applies for all periods beginning May 30, 1995, but no | ||||||
23 | claim for credit or refund is allowed on or after January 1, | ||||||
24 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
25 | paid during the period beginning May 30, 2000 and ending on | ||||||
26 | January 1, 2008 (the effective date of Public Act 95-88).
|
| |||||||
| |||||||
1 | (16) Computers and communications equipment utilized for | ||||||
2 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
3 | analysis, or treatment of hospital patients sold to a lessor | ||||||
4 | who leases the
equipment, under a lease of one year or longer | ||||||
5 | executed or in effect at the
time of the purchase, to a
| ||||||
6 | hospital
that has been issued an active tax exemption | ||||||
7 | identification number by the
Department under Section 1g of the | ||||||
8 | Retailers' Occupation Tax Act.
| ||||||
9 | (17) Personal property sold to a lessor who leases the
| ||||||
10 | property, under a
lease of one year or longer executed or in | ||||||
11 | effect at the time of the purchase,
to a governmental body
that | ||||||
12 | has been issued an active tax exemption identification number | ||||||
13 | by the
Department under Section 1g of the Retailers' Occupation | ||||||
14 | Tax Act.
| ||||||
15 | (18) Beginning with taxable years ending on or after | ||||||
16 | December
31, 1995
and
ending with taxable years ending on or | ||||||
17 | before December 31, 2004,
personal property that is
donated for | ||||||
18 | disaster relief to be used in a State or federally declared
| ||||||
19 | disaster area in Illinois or bordering Illinois by a | ||||||
20 | manufacturer or retailer
that is registered in this State to a | ||||||
21 | corporation, society, association,
foundation, or institution | ||||||
22 | that has been issued a sales tax exemption
identification | ||||||
23 | number by the Department that assists victims of the disaster
| ||||||
24 | who reside within the declared disaster area.
| ||||||
25 | (19) Beginning with taxable years ending on or after | ||||||
26 | December
31, 1995 and
ending with taxable years ending on or |
| |||||||
| |||||||
1 | before December 31, 2004, personal
property that is used in the | ||||||
2 | performance of infrastructure repairs in this
State, including | ||||||
3 | but not limited to municipal roads and streets, access roads,
| ||||||
4 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
5 | line extensions,
water distribution and purification | ||||||
6 | facilities, storm water drainage and
retention facilities, and | ||||||
7 | sewage treatment facilities, resulting from a State
or | ||||||
8 | federally declared disaster in Illinois or bordering Illinois | ||||||
9 | when such
repairs are initiated on facilities located in the | ||||||
10 | declared disaster area
within 6 months after the disaster.
| ||||||
11 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
12 | "game breeding
and
hunting preserve area" or an "exotic game | ||||||
13 | hunting area" as those terms are used
in the
Wildlife Code or | ||||||
14 | at a hunting enclosure approved through rules adopted by the
| ||||||
15 | Department of Natural Resources. This paragraph is exempt from | ||||||
16 | the 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 Department | ||||||
21 | to be organized and operated exclusively for educational
| ||||||
22 | purposes. For purposes of this exemption, "a corporation, | ||||||
23 | limited liability
company, society, association, foundation, | ||||||
24 | or institution organized and
operated
exclusively for | ||||||
25 | educational purposes" means all tax-supported public schools,
| ||||||
26 | private schools that offer systematic instruction in useful |
| |||||||
| |||||||
1 | branches of
learning by methods common to public schools and | ||||||
2 | that compare favorably in
their scope and intensity with the | ||||||
3 | course of study presented in tax-supported
schools, and | ||||||
4 | vocational or technical schools or institutes organized and
| ||||||
5 | operated exclusively to provide a course of study of not less | ||||||
6 | than 6 weeks
duration and designed to prepare individuals to | ||||||
7 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
8 | industrial, business, or commercial
occupation.
| ||||||
9 | (22) Beginning January 1, 2000, personal property, | ||||||
10 | including
food,
purchased through fundraising
events for the | ||||||
11 | benefit of
a public or private elementary or
secondary school, | ||||||
12 | a group of those schools, or one or more school
districts if | ||||||
13 | the events are
sponsored by an entity recognized by the school | ||||||
14 | district that consists
primarily of volunteers and includes
| ||||||
15 | parents and teachers of the school children. This paragraph | ||||||
16 | does not apply
to fundraising
events (i) for the benefit of | ||||||
17 | private home instruction or (ii)
for which the fundraising | ||||||
18 | entity purchases the personal property sold at
the events from | ||||||
19 | another individual or entity that sold the property for the
| ||||||
20 | purpose of resale by the fundraising entity and that
profits | ||||||
21 | from the sale to the
fundraising entity. This paragraph is | ||||||
22 | exempt
from the provisions
of Section 3-55.
| ||||||
23 | (23) Beginning January 1, 2000
and through December 31, | ||||||
24 | 2001, new or used automatic vending
machines that prepare and | ||||||
25 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
26 | items, and replacement parts for these machines.
Beginning |
| |||||||
| |||||||
1 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
2 | for
machines used in commercial, coin-operated amusement
and | ||||||
3 | vending business if a use or occupation tax is paid on the | ||||||
4 | gross receipts
derived from
the use of the commercial, | ||||||
5 | coin-operated amusement and vending machines.
This paragraph | ||||||
6 | is exempt from the provisions of Section 3-55.
| ||||||
7 | (24) Beginning
on the effective date of this amendatory Act | ||||||
8 | of the 92nd General Assembly,
computers and communications | ||||||
9 | equipment
utilized for any hospital purpose and equipment used | ||||||
10 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
11 | sold to a lessor who leases the
equipment, under a lease of one | ||||||
12 | year or longer executed or in effect at the
time of the | ||||||
13 | purchase, to a hospital that has been issued an active tax
| ||||||
14 | exemption identification number by the Department under | ||||||
15 | Section 1g of the
Retailers' Occupation Tax Act. This paragraph | ||||||
16 | is exempt from the provisions of
Section 3-55.
| ||||||
17 | (25) Beginning
on the effective date of this amendatory Act | ||||||
18 | of the 92nd General Assembly,
personal property sold to a | ||||||
19 | lessor who
leases the property, under a lease of one year or | ||||||
20 | longer executed or in effect
at the time of the purchase, to a | ||||||
21 | governmental body that has been issued an
active tax exemption | ||||||
22 | identification number by the Department under Section 1g
of the | ||||||
23 | Retailers' Occupation Tax Act. This paragraph is exempt from | ||||||
24 | the
provisions of Section 3-55.
| ||||||
25 | (26) Beginning on January 1, 2002 and through June 30, | ||||||
26 | 2011, tangible personal property
purchased
from an Illinois |
| |||||||
| |||||||
1 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
2 | activities in Illinois who will, upon receipt of the property | ||||||
3 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
4 | the purpose of subsequently
transporting it outside this State | ||||||
5 | for use or consumption thereafter solely
outside this State or | ||||||
6 | (ii) for the purpose of being processed, fabricated, or
| ||||||
7 | manufactured into, attached to, or incorporated into other | ||||||
8 | tangible personal
property to be transported outside this State | ||||||
9 | and thereafter used or consumed
solely outside this State. The | ||||||
10 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
11 | accordance with the Illinois Administrative Procedure Act, | ||||||
12 | issue a
permit to any taxpayer in good standing with the | ||||||
13 | Department who is eligible for
the exemption under this | ||||||
14 | paragraph (26). The permit issued under
this paragraph (26) | ||||||
15 | shall authorize the holder, to the extent and
in the manner | ||||||
16 | specified in the rules adopted under this Act, to purchase
| ||||||
17 | tangible personal property from a retailer exempt from the | ||||||
18 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
19 | necessary books and records to
substantiate the use and | ||||||
20 | consumption of all such tangible personal property
outside of | ||||||
21 | the State of Illinois.
| ||||||
22 | (27) Beginning January 1, 2008, tangible personal property | ||||||
23 | used in the construction or maintenance of a community water | ||||||
24 | supply, as defined under Section 3.145 of the Environmental | ||||||
25 | Protection Act, that is operated by a not-for-profit | ||||||
26 | corporation that holds a valid water supply permit issued under |
| |||||||
| |||||||
1 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
2 | exempt from the provisions of Section 3-55.
| ||||||
3 | (28) Tangible personal property sold to a | ||||||
4 | public-facilities corporation, as described in Section | ||||||
5 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
6 | constructing or furnishing a municipal convention hall, but | ||||||
7 | only if the legal title to the municipal convention hall is | ||||||
8 | transferred to the municipality without any further | ||||||
9 | consideration by or on behalf of the municipality at the time | ||||||
10 | of the completion of the municipal convention hall or upon the | ||||||
11 | retirement or redemption of any bonds or other debt instruments | ||||||
12 | issued by the public-facilities corporation in connection with | ||||||
13 | the development of the municipal convention hall. This | ||||||
14 | exemption includes existing public-facilities corporations as | ||||||
15 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
16 | This paragraph is exempt from the provisions of Section 3-55. | ||||||
17 | (29) Beginning January 1, 2010, materials, parts, | ||||||
18 | equipment, components, and furnishings incorporated into or | ||||||
19 | upon an aircraft as part of the modification, refurbishment, | ||||||
20 | completion, replacement, repair, or maintenance of the | ||||||
21 | aircraft. This exemption includes consumable supplies used in | ||||||
22 | the modification, refurbishment, completion, replacement, | ||||||
23 | repair, and maintenance of aircraft, but excludes any | ||||||
24 | materials, parts, equipment, components, and consumable | ||||||
25 | supplies used in the modification, replacement, repair, and | ||||||
26 | maintenance of aircraft engines or power plants, whether such |
| |||||||
| |||||||
1 | engines or power plants are installed or uninstalled upon any | ||||||
2 | such aircraft. "Consumable supplies" include, but are not | ||||||
3 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
4 | lubricants, cleaning solution, latex gloves, and protective | ||||||
5 | films. This exemption applies only to those organizations that | ||||||
6 | (i) hold an Air Agency Certificate and are empowered to operate | ||||||
7 | an approved repair station by the Federal Aviation | ||||||
8 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
9 | operations in accordance with Part 145 of the Federal Aviation | ||||||
10 | Regulations. The exemption does not include aircraft operated | ||||||
11 | by a commercial air carrier providing scheduled passenger air | ||||||
12 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
13 | of the Federal Aviation Regulations. | ||||||
14 | (Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876, | ||||||
15 | eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; | ||||||
16 | 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. | ||||||
17 | 7-2-10.)
| ||||||
18 | (35 ILCS 115/3-55)
| ||||||
19 | Sec. 3-55. Sunset of exemptions, credits, and deductions. | ||||||
20 | The application
of every exemption, credit, and deduction | ||||||
21 | against tax imposed by this Act that
becomes law after the | ||||||
22 | effective date of this amendatory Act of 1994 shall be
limited | ||||||
23 | by a reasonable and appropriate sunset date. A taxpayer is not
| ||||||
24 | entitled to take the exemption, credit, or deduction beginning | ||||||
25 | on the sunset
date and thereafter. If a reasonable and |
| |||||||
| |||||||
1 | appropriate sunset date is not
specified in the Public Act that | ||||||
2 | creates the exemption, credit, or deduction, a
taxpayer shall | ||||||
3 | not be entitled to take the exemption, credit, or deduction
| ||||||
4 | beginning 5 years after the effective date of the Public Act | ||||||
5 | creating the
exemption, credit, or deduction and thereafter. No | ||||||
6 | exemption, credit, or deduction against a tax imposed by this | ||||||
7 | Act that was in effect prior to September 16, 1994 (the | ||||||
8 | effective date of Public Act 88-660) may be taken on or after | ||||||
9 | December 31, 2012 unless a different sunset date is stated in | ||||||
10 | the provision setting forth the exemption, credit, or | ||||||
11 | deduction.
| ||||||
12 | (Source: P.A. 88-660, eff. 9-16-94.)
| ||||||
13 | Section 40. The Retailers' Occupation Tax Act is amended by | ||||||
14 | changing Sections 2-5 and 2-70 as follows:
| ||||||
15 | (35 ILCS 120/2-5)
| ||||||
16 | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||||||
17 | sale of
the following tangible personal property are exempt | ||||||
18 | from the tax imposed
by this Act:
| ||||||
19 | (1) Farm chemicals.
| ||||||
20 | (2) Farm machinery and equipment, both new and used, | ||||||
21 | including that
manufactured on special order, certified by the | ||||||
22 | purchaser to be used
primarily for production agriculture or | ||||||
23 | State or federal agricultural
programs, including individual | ||||||
24 | replacement parts for the machinery and
equipment, including |
| |||||||
| |||||||
1 | machinery and equipment purchased for lease,
and including | ||||||
2 | implements of husbandry defined in Section 1-130 of
the | ||||||
3 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
4 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
5 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
6 | but
excluding other motor vehicles required to be registered | ||||||
7 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
8 | hoop houses used for propagating, growing, or
overwintering | ||||||
9 | plants shall be considered farm machinery and equipment under
| ||||||
10 | this item (2).
Agricultural chemical tender tanks and dry boxes | ||||||
11 | shall include units sold
separately from a motor vehicle | ||||||
12 | required to be licensed and units sold mounted
on a motor | ||||||
13 | vehicle required to be licensed, if the selling price of the | ||||||
14 | tender
is separately stated.
| ||||||
15 | Farm machinery and equipment shall include precision | ||||||
16 | farming equipment
that is
installed or purchased to be | ||||||
17 | installed on farm machinery and equipment
including, but not | ||||||
18 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
19 | or spreaders.
Precision farming equipment includes, but is not | ||||||
20 | limited to,
soil testing sensors, computers, monitors, | ||||||
21 | software, global positioning
and mapping systems, and other | ||||||
22 | such equipment.
| ||||||
23 | Farm machinery and equipment also includes computers, | ||||||
24 | sensors, software, and
related equipment used primarily in the
| ||||||
25 | computer-assisted operation of production agriculture | ||||||
26 | facilities, equipment,
and activities such as, but
not limited |
| |||||||
| |||||||
1 | to,
the collection, monitoring, and correlation of
animal and | ||||||
2 | crop data for the purpose of
formulating animal diets and | ||||||
3 | agricultural chemicals. This item (7) is exempt
from the | ||||||
4 | provisions of
Section 2-70.
| ||||||
5 | (3) Until July 1, 2003, distillation machinery and | ||||||
6 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
7 | retailer, certified by the user to be used
only for the | ||||||
8 | production of ethyl alcohol that will be used for consumption
| ||||||
9 | as motor fuel or as a component of motor fuel for the personal | ||||||
10 | use of the
user, and not subject to sale or resale.
| ||||||
11 | (4) Until July 1, 2003 and beginning again September 1, | ||||||
12 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
13 | equipment, including
repair and
replacement parts, both new and | ||||||
14 | used, and including that manufactured on
special order or | ||||||
15 | purchased for lease, certified by the purchaser to be used
| ||||||
16 | primarily for graphic arts production.
Equipment includes | ||||||
17 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
18 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
19 | immediate
change upon a
graphic arts product.
| ||||||
20 | (5) A motor vehicle of the first division, a motor vehicle | ||||||
21 | of the second division that is a self contained motor vehicle | ||||||
22 | designed or permanently converted to provide living quarters | ||||||
23 | for recreational, camping, or travel use, with direct walk | ||||||
24 | through access to the living quarters from the driver's seat, | ||||||
25 | or a motor vehicle of the second division that is of the van | ||||||
26 | configuration designed for the transportation of not less than |
| |||||||
| |||||||
1 | 7 nor more than 16 passengers, as defined in Section 1-146 of | ||||||
2 | the Illinois Vehicle Code, that is used for automobile renting, | ||||||
3 | as defined in the Automobile Renting Occupation and Use Tax | ||||||
4 | Act. This paragraph is exempt from
the provisions of Section | ||||||
5 | 2-70.
| ||||||
6 | (6) Personal property sold by a teacher-sponsored student | ||||||
7 | organization
affiliated with an elementary or secondary school | ||||||
8 | located in Illinois.
| ||||||
9 | (7) Until July 1, 2003, proceeds of that portion of the | ||||||
10 | selling price of
a passenger car the
sale of which is subject | ||||||
11 | to the Replacement Vehicle Tax.
| ||||||
12 | (8) Personal property sold to an Illinois county fair | ||||||
13 | association for
use in conducting, operating, or promoting the | ||||||
14 | county fair.
| ||||||
15 | (9) Personal property sold to a not-for-profit arts
or | ||||||
16 | cultural organization that establishes, by proof required by | ||||||
17 | the Department
by
rule, that it has received an exemption under | ||||||
18 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
19 | organized and operated primarily for the
presentation
or | ||||||
20 | support of arts or cultural programming, activities, or | ||||||
21 | services. These
organizations include, but are not limited to, | ||||||
22 | music and dramatic arts
organizations such as symphony | ||||||
23 | orchestras and theatrical groups, arts and
cultural service | ||||||
24 | organizations, local arts councils, visual arts organizations,
| ||||||
25 | and media arts organizations.
On and after the effective date | ||||||
26 | of this amendatory Act of the 92nd General
Assembly, however, |
| |||||||
| |||||||
1 | an entity otherwise eligible for this exemption shall not
make | ||||||
2 | tax-free purchases unless it has an active identification | ||||||
3 | number issued by
the Department.
| ||||||
4 | (10) Personal property sold by a corporation, society, | ||||||
5 | association,
foundation, institution, or organization, other | ||||||
6 | than a limited liability
company, that is organized and | ||||||
7 | operated as a not-for-profit service enterprise
for the benefit | ||||||
8 | of persons 65 years of age or older if the personal property
| ||||||
9 | was not purchased by the enterprise for the purpose of resale | ||||||
10 | by the
enterprise.
| ||||||
11 | (11) Personal property sold to a governmental body, to a | ||||||
12 | corporation,
society, association, foundation, or institution | ||||||
13 | organized and operated
exclusively for charitable, religious, | ||||||
14 | or educational purposes, or to a
not-for-profit corporation, | ||||||
15 | society, association, foundation, institution,
or organization | ||||||
16 | that has no compensated officers or employees and that is
| ||||||
17 | organized and operated primarily for the recreation of persons | ||||||
18 | 55 years of
age or older. A limited liability company may | ||||||
19 | qualify for the exemption under
this paragraph only if the | ||||||
20 | limited liability company is organized and operated
| ||||||
21 | exclusively for educational purposes. On and after July 1, | ||||||
22 | 1987, however, no
entity otherwise eligible for this exemption | ||||||
23 | shall make tax-free purchases
unless it has an active | ||||||
24 | identification number issued by the Department.
| ||||||
25 | (12) Tangible personal property sold to
interstate | ||||||
26 | carriers
for hire for use as
rolling stock moving in interstate |
| |||||||
| |||||||
1 | commerce or to lessors under leases of
one year or longer | ||||||
2 | executed or in effect at the time of purchase by
interstate | ||||||
3 | carriers for hire for use as rolling stock moving in interstate
| ||||||
4 | commerce and equipment operated by a telecommunications | ||||||
5 | provider, licensed as a
common carrier by the Federal | ||||||
6 | Communications Commission, which is permanently
installed in | ||||||
7 | or affixed to aircraft moving in interstate commerce.
| ||||||
8 | (12-5) On and after July 1, 2003 and through June 30, 2004, | ||||||
9 | motor vehicles of the second division
with a gross vehicle | ||||||
10 | weight in excess of 8,000 pounds
that
are
subject to the | ||||||
11 | commercial distribution fee imposed under Section 3-815.1 of
| ||||||
12 | the Illinois
Vehicle Code. Beginning on July 1, 2004 and | ||||||
13 | through June 30, 2005, the use in this State of motor vehicles | ||||||
14 | of the second division: (i) with a gross vehicle weight rating | ||||||
15 | in excess of 8,000 pounds; (ii) that are subject to the | ||||||
16 | commercial distribution fee imposed under Section 3-815.1 of | ||||||
17 | the Illinois Vehicle Code; and (iii) that are primarily used | ||||||
18 | for commercial purposes. Through June 30, 2005, this
exemption | ||||||
19 | applies to repair and replacement parts added
after the
initial | ||||||
20 | purchase of such a motor vehicle if that motor vehicle is used | ||||||
21 | in a
manner that
would qualify for the rolling stock exemption | ||||||
22 | otherwise provided for in this
Act. For purposes of this | ||||||
23 | paragraph, "used for commercial purposes" means the | ||||||
24 | transportation of persons or property in furtherance of any | ||||||
25 | commercial or industrial enterprise whether for-hire or not.
| ||||||
26 | (13) Proceeds from sales to owners, lessors, or
shippers of
|
| |||||||
| |||||||
1 | tangible personal property that is utilized by interstate | ||||||
2 | carriers for
hire for use as rolling stock moving in interstate | ||||||
3 | commerce
and equipment operated by a telecommunications | ||||||
4 | provider, licensed as a
common carrier by the Federal | ||||||
5 | Communications Commission, which is
permanently installed in | ||||||
6 | or affixed to aircraft moving in interstate commerce.
| ||||||
7 | (14) Machinery and equipment that will be used by the | ||||||
8 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
9 | process of manufacturing or
assembling tangible personal | ||||||
10 | property for wholesale or retail sale or
lease, whether the | ||||||
11 | sale or lease is made directly by the manufacturer or by
some | ||||||
12 | other person, whether the materials used in the process are | ||||||
13 | owned by
the manufacturer or some other person, or whether the | ||||||
14 | sale or lease is made
apart from or as an incident to the | ||||||
15 | seller's engaging in the service
occupation of producing | ||||||
16 | machines, tools, dies, jigs, patterns, gauges, or
other similar | ||||||
17 | items of no commercial value on special order for a particular
| ||||||
18 | purchaser.
| ||||||
19 | (15) Proceeds of mandatory service charges separately | ||||||
20 | stated on
customers' bills for purchase and consumption of food | ||||||
21 | and beverages, to the
extent that the proceeds of the service | ||||||
22 | charge are in fact turned over as
tips or as a substitute for | ||||||
23 | tips to the employees who participate directly
in preparing, | ||||||
24 | serving, hosting or cleaning up the food or beverage function
| ||||||
25 | with respect to which the service charge is imposed.
| ||||||
26 | (16) Petroleum products sold to a purchaser if the seller
|
| |||||||
| |||||||
1 | is prohibited by federal law from charging tax to the | ||||||
2 | purchaser.
| ||||||
3 | (17) Tangible personal property sold to a common carrier by | ||||||
4 | rail or
motor that
receives the physical possession of the | ||||||
5 | property in Illinois and that
transports the property, or | ||||||
6 | shares with another common carrier in the
transportation of the | ||||||
7 | property, out of Illinois on a standard uniform bill
of lading | ||||||
8 | showing the seller of the property as the shipper or consignor | ||||||
9 | of
the property to a destination outside Illinois, for use | ||||||
10 | outside Illinois.
| ||||||
11 | (18) Legal tender, currency, medallions, or gold or silver | ||||||
12 | coinage
issued by the State of Illinois, the government of the | ||||||
13 | United States of
America, or the government of any foreign | ||||||
14 | country, and bullion.
| ||||||
15 | (19) Until July 1 2003, oil field exploration, drilling, | ||||||
16 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
17 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
18 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
19 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
20 | individual replacement part for oil field exploration,
| ||||||
21 | drilling, and production equipment, and (vi) machinery and | ||||||
22 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
23 | required to be registered under the Illinois
Vehicle Code.
| ||||||
24 | (20) Photoprocessing machinery and equipment, including | ||||||
25 | repair and
replacement parts, both new and used, including that | ||||||
26 | manufactured on
special order, certified by the purchaser to be |
| |||||||
| |||||||
1 | used primarily for
photoprocessing, and including | ||||||
2 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
3 | (21) Until July 1, 2003, coal exploration, mining, | ||||||
4 | offhighway hauling,
processing,
maintenance, and reclamation | ||||||
5 | equipment, including
replacement parts and equipment, and | ||||||
6 | including
equipment purchased for lease, but excluding motor | ||||||
7 | vehicles required to be
registered under the Illinois Vehicle | ||||||
8 | Code.
| ||||||
9 | (22) Fuel and petroleum products sold to or used by an air | ||||||
10 | carrier,
certified by the carrier to be used for consumption, | ||||||
11 | shipment, or storage
in the conduct of its business as an air | ||||||
12 | common carrier, for a flight
destined for or returning from a | ||||||
13 | location or locations
outside the United States without regard | ||||||
14 | to previous or subsequent domestic
stopovers.
| ||||||
15 | (23) A transaction in which the purchase order is received | ||||||
16 | by a florist
who is located outside Illinois, but who has a | ||||||
17 | florist located in Illinois
deliver the property to the | ||||||
18 | purchaser or the purchaser's donee in Illinois.
| ||||||
19 | (24) Fuel consumed or used in the operation of ships, | ||||||
20 | barges, or vessels
that are used primarily in or for the | ||||||
21 | transportation of property or the
conveyance of persons for | ||||||
22 | hire on rivers bordering on this State if the
fuel is delivered | ||||||
23 | by the seller to the purchaser's barge, ship, or vessel
while | ||||||
24 | it is afloat upon that bordering river.
| ||||||
25 | (25) Except as provided in item (25-5) of this Section, a
| ||||||
26 | motor vehicle sold in this State to a nonresident even though |
| |||||||
| |||||||
1 | the
motor vehicle is delivered to the nonresident in this | ||||||
2 | State, if the motor
vehicle is not to be titled in this State, | ||||||
3 | and if a drive-away permit
is issued to the motor vehicle as | ||||||
4 | provided in Section 3-603 of the Illinois
Vehicle Code or if | ||||||
5 | the nonresident purchaser has vehicle registration
plates to | ||||||
6 | transfer to the motor vehicle upon returning to his or her home
| ||||||
7 | state. The issuance of the drive-away permit or having
the
| ||||||
8 | out-of-state registration plates to be transferred is prima | ||||||
9 | facie evidence
that the motor vehicle will not be titled in | ||||||
10 | this State.
| ||||||
11 | (25-5) The exemption under item (25) does not apply if the | ||||||
12 | state in which the motor vehicle will be titled does not allow | ||||||
13 | a reciprocal exemption for a motor vehicle sold and delivered | ||||||
14 | in that state to an Illinois resident but titled in Illinois. | ||||||
15 | The tax collected under this Act on the sale of a motor vehicle | ||||||
16 | in this State to a resident of another state that does not | ||||||
17 | allow a reciprocal exemption shall be imposed at a rate equal | ||||||
18 | to the state's rate of tax on taxable property in the state in | ||||||
19 | which the purchaser is a resident, except that the tax shall | ||||||
20 | not exceed the tax that would otherwise be imposed under this | ||||||
21 | Act. At the time of the sale, the purchaser shall execute a | ||||||
22 | statement, signed under penalty of perjury, of his or her | ||||||
23 | intent to title the vehicle in the state in which the purchaser | ||||||
24 | is a resident within 30 days after the sale and of the fact of | ||||||
25 | the payment to the State of Illinois of tax in an amount | ||||||
26 | equivalent to the state's rate of tax on taxable property in |
| |||||||
| |||||||
1 | his or her state of residence and shall submit the statement to | ||||||
2 | the appropriate tax collection agency in his or her state of | ||||||
3 | residence. In addition, the retailer must retain a signed copy | ||||||
4 | of the statement in his or her records. Nothing in this item | ||||||
5 | shall be construed to require the removal of the vehicle from | ||||||
6 | this state following the filing of an intent to title the | ||||||
7 | vehicle in the purchaser's state of residence if the purchaser | ||||||
8 | titles the vehicle in his or her state of residence within 30 | ||||||
9 | days after the date of sale. The tax collected under this Act | ||||||
10 | in accordance with this item (25-5) shall be proportionately | ||||||
11 | distributed as if the tax were collected at the 6.25% general | ||||||
12 | rate imposed under this Act.
| ||||||
13 | (25-7) Beginning on July 1, 2007, no tax is imposed under | ||||||
14 | this Act on the sale of an aircraft, as defined in Section 3 of | ||||||
15 | the Illinois Aeronautics Act, if all of the following | ||||||
16 | conditions are met: | ||||||
17 | (1) the aircraft leaves this State within 15 days after | ||||||
18 | the later of either the issuance of the final billing for | ||||||
19 | the sale of the aircraft, or the authorized approval for | ||||||
20 | return to service, completion of the maintenance record | ||||||
21 | entry, and completion of the test flight and ground test | ||||||
22 | for inspection, as required by 14 C.F.R. 91.407; | ||||||
23 | (2) the aircraft is not based or registered in this | ||||||
24 | State after the sale of the aircraft; and | ||||||
25 | (3) the seller retains in his or her books and records | ||||||
26 | and provides to the Department a signed and dated |
| |||||||
| |||||||
1 | certification from the purchaser, on a form prescribed by | ||||||
2 | the Department, certifying that the requirements of this | ||||||
3 | item (25-7) are met. The certificate must also include the | ||||||
4 | name and address of the purchaser, the address of the | ||||||
5 | location where the aircraft is to be titled or registered, | ||||||
6 | the address of the primary physical location of the | ||||||
7 | aircraft, and other information that the Department may | ||||||
8 | reasonably require. | ||||||
9 | For purposes of this item (25-7): | ||||||
10 | "Based in this State" means hangared, stored, or otherwise | ||||||
11 | used, excluding post-sale customizations as defined in this | ||||||
12 | Section, for 10 or more days in each 12-month period | ||||||
13 | immediately following the date of the sale of the aircraft. | ||||||
14 | "Registered in this State" means an aircraft registered | ||||||
15 | with the Department of Transportation, Aeronautics Division, | ||||||
16 | or titled or registered with the Federal Aviation | ||||||
17 | Administration to an address located in this State. | ||||||
18 | This paragraph (25-7) is exempt from the provisions
of
| ||||||
19 | Section 2-70.
| ||||||
20 | (26) Semen used for artificial insemination of livestock | ||||||
21 | for direct
agricultural production.
| ||||||
22 | (27) Horses, or interests in horses, registered with and | ||||||
23 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
24 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
25 | Horse Association, United States
Trotting Association, or | ||||||
26 | Jockey Club, as appropriate, used for
purposes of breeding or |
| |||||||
| |||||||
1 | racing for prizes. This item (27) is exempt from the provisions | ||||||
2 | of Section 2-70, and the exemption provided for under this item | ||||||
3 | (27) applies for all periods beginning May 30, 1995, but no | ||||||
4 | claim for credit or refund is allowed on or after January 1, | ||||||
5 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
6 | paid during the period beginning May 30, 2000 and ending on | ||||||
7 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
8 | (28) Computers and communications equipment utilized for | ||||||
9 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
10 | analysis, or treatment of hospital patients sold to a lessor | ||||||
11 | who leases the
equipment, under a lease of one year or longer | ||||||
12 | executed or in effect at the
time of the purchase, to a
| ||||||
13 | hospital
that has been issued an active tax exemption | ||||||
14 | identification number by the
Department under Section 1g of | ||||||
15 | this Act.
| ||||||
16 | (29) Personal property sold to a lessor who leases the
| ||||||
17 | property, under a
lease of one year or longer executed or in | ||||||
18 | effect at the time of the purchase,
to a governmental body
that | ||||||
19 | has been issued an active tax exemption identification number | ||||||
20 | by the
Department under Section 1g of this Act.
| ||||||
21 | (30) 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 for | ||||||
24 | 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 | (31) 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 the | ||||||
8 | performance of infrastructure repairs in this
State, including | ||||||
9 | but not limited to municipal roads and streets, access roads,
| ||||||
10 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
11 | line extensions,
water distribution and purification | ||||||
12 | facilities, storm water drainage and
retention facilities, and | ||||||
13 | sewage treatment facilities, resulting from a State
or | ||||||
14 | federally declared disaster in Illinois or bordering Illinois | ||||||
15 | when such
repairs are initiated on facilities located in the | ||||||
16 | declared disaster area
within 6 months after the disaster.
| ||||||
17 | (32) Beginning July 1, 1999, game or game birds sold at a | ||||||
18 | "game breeding
and
hunting preserve area" or an "exotic game | ||||||
19 | hunting area" as those terms are used
in the
Wildlife Code or | ||||||
20 | at a hunting enclosure approved through rules adopted by the
| ||||||
21 | Department of Natural Resources. This paragraph is exempt from | ||||||
22 | the provisions
of
Section 2-70.
| ||||||
23 | (33) A motor vehicle, as that term is defined in Section | ||||||
24 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
25 | corporation, limited liability
company, society, association, | ||||||
26 | foundation, or institution that is determined by
the Department |
| |||||||
| |||||||
1 | to be organized and operated exclusively for educational
| ||||||
2 | purposes. For purposes of this exemption, "a corporation, | ||||||
3 | limited liability
company, society, association, foundation, | ||||||
4 | or institution organized and
operated
exclusively for | ||||||
5 | educational purposes" means all tax-supported public schools,
| ||||||
6 | private schools that offer systematic instruction in useful | ||||||
7 | branches of
learning by methods common to public schools and | ||||||
8 | that compare favorably in
their scope and intensity with the | ||||||
9 | course of study presented in tax-supported
schools, and | ||||||
10 | vocational or technical schools or institutes organized and
| ||||||
11 | operated exclusively to provide a course of study of not less | ||||||
12 | than 6 weeks
duration and designed to prepare individuals to | ||||||
13 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
14 | industrial, business, or commercial
occupation.
| ||||||
15 | (34) 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 2-70.
| ||||||
3 | (35) 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 other | ||||||
6 | items, and replacement parts for these
machines. Beginning | ||||||
7 | January 1, 2002 and through June 30, 2003, machines
and parts | ||||||
8 | for machines used in
commercial, coin-operated amusement and | ||||||
9 | vending business if a use or occupation
tax is paid on the | ||||||
10 | gross receipts derived from the use of the commercial,
| ||||||
11 | coin-operated amusement and vending machines. This paragraph | ||||||
12 | is exempt from
the provisions of Section 2-70.
| ||||||
13 | (35-5) Beginning August 23, 2001 and through June 30, 2011, | ||||||
14 | food for human consumption that is to be consumed off
the | ||||||
15 | premises where it is sold (other than alcoholic beverages, soft | ||||||
16 | 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 a licensed facility as defined in | ||||||
24 | the MR/DD Community Care Act.
| ||||||
25 | (36) Beginning August 2, 2001, computers and | ||||||
26 | communications equipment
utilized for any hospital purpose and |
| |||||||
| |||||||
1 | equipment used in the diagnosis,
analysis, or treatment of | ||||||
2 | hospital patients sold to a lessor who leases the
equipment, | ||||||
3 | under a lease of one year or longer executed or in effect at | ||||||
4 | the
time of the purchase, to a hospital that has been issued an | ||||||
5 | active tax
exemption identification number by the Department | ||||||
6 | under Section 1g of this Act.
This paragraph is exempt from the | ||||||
7 | provisions of Section 2-70.
| ||||||
8 | (37) Beginning August 2, 2001, personal property sold to a | ||||||
9 | lessor who
leases the property, under a lease of one year or | ||||||
10 | longer executed or in effect
at the time of the purchase, to a | ||||||
11 | governmental body that has been issued an
active tax exemption | ||||||
12 | identification number by the Department under Section 1g
of | ||||||
13 | this Act. This paragraph is exempt from the provisions of | ||||||
14 | Section 2-70.
| ||||||
15 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
16 | 2011, tangible personal property purchased
from an Illinois | ||||||
17 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
18 | activities in Illinois who will, upon receipt of the property | ||||||
19 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
20 | the purpose of subsequently
transporting it outside this State | ||||||
21 | for use or consumption thereafter solely
outside this State or | ||||||
22 | (ii) for the purpose of being processed, fabricated, or
| ||||||
23 | manufactured into, attached to, or incorporated into other | ||||||
24 | tangible personal
property to be transported outside this State | ||||||
25 | and thereafter used or consumed
solely outside this State. The | ||||||
26 | Director of Revenue shall, pursuant to rules
adopted in |
| |||||||
| |||||||
1 | accordance with the Illinois Administrative Procedure Act, | ||||||
2 | issue a
permit to any taxpayer in good standing with the | ||||||
3 | Department who is eligible for
the exemption under this | ||||||
4 | paragraph (38). The permit issued under
this paragraph (38) | ||||||
5 | shall authorize the holder, to the extent and
in the manner | ||||||
6 | specified in the rules adopted under this Act, to purchase
| ||||||
7 | tangible personal property from a retailer exempt from the | ||||||
8 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
9 | necessary books and records to
substantiate the use and | ||||||
10 | consumption of all such tangible personal property
outside of | ||||||
11 | the State of Illinois.
| ||||||
12 | (39) Beginning January 1, 2008, tangible personal property | ||||||
13 | used in the construction or maintenance of a community water | ||||||
14 | supply, as defined under Section 3.145 of the Environmental | ||||||
15 | Protection Act, that is operated by a not-for-profit | ||||||
16 | corporation that holds a valid water supply permit issued under | ||||||
17 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
18 | exempt from the provisions of Section 2-70.
| ||||||
19 | (40) Beginning January 1, 2010, materials, parts, | ||||||
20 | equipment, components, and furnishings incorporated into or | ||||||
21 | upon an aircraft as part of the modification, refurbishment, | ||||||
22 | completion, replacement, repair, or maintenance of the | ||||||
23 | aircraft. This exemption includes consumable supplies used in | ||||||
24 | the modification, refurbishment, completion, replacement, | ||||||
25 | repair, and maintenance of aircraft, but excludes any | ||||||
26 | materials, parts, equipment, components, and consumable |
| |||||||
| |||||||
1 | supplies used in the modification, replacement, repair, and | ||||||
2 | maintenance of aircraft engines or power plants, whether such | ||||||
3 | engines or power plants are installed or uninstalled upon any | ||||||
4 | such aircraft. "Consumable supplies" include, but are not | ||||||
5 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
6 | lubricants, cleaning solution, latex gloves, and protective | ||||||
7 | films. This exemption applies only to those organizations that | ||||||
8 | (i) hold an Air Agency Certificate and are empowered to operate | ||||||
9 | an approved repair station by the Federal Aviation | ||||||
10 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
11 | operations in accordance with Part 145 of the Federal Aviation | ||||||
12 | Regulations. The exemption does not include aircraft operated | ||||||
13 | by a commercial air carrier providing scheduled passenger air | ||||||
14 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
15 | of the Federal Aviation Regulations. | ||||||
16 | (41) Tangible personal property sold to a | ||||||
17 | public-facilities corporation, as described in Section | ||||||
18 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
19 | constructing or furnishing a municipal convention hall, but | ||||||
20 | only if the legal title to the municipal convention hall is | ||||||
21 | transferred to the municipality without any further | ||||||
22 | consideration by or on behalf of the municipality at the time | ||||||
23 | of the completion of the municipal convention hall or upon the | ||||||
24 | retirement or redemption of any bonds or other debt instruments | ||||||
25 | issued by the public-facilities corporation in connection with | ||||||
26 | the development of the municipal convention hall. This |
| |||||||
| |||||||
1 | exemption includes existing public-facilities corporations as | ||||||
2 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
3 | This paragraph is exempt from the provisions of Section 2-70. | ||||||
4 | (Source: P.A. 95-88, eff. 1-1-08; 95-233, eff. 8-16-07; 95-304, | ||||||
5 | eff. 8-20-07; 95-538, eff. 1-1-08; 95-707, eff. 1-11-08; | ||||||
6 | 95-876, eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. | ||||||
7 | 7-1-10; 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, | ||||||
8 | eff. 7-2-10.)
| ||||||
9 | (35 ILCS 120/2-70)
| ||||||
10 | Sec. 2-70. Sunset of exemptions, credits, and deductions. | ||||||
11 | The application
of every exemption, credit, and deduction | ||||||
12 | against tax imposed by this Act that
becomes law after the | ||||||
13 | effective date of this amendatory Act of 1994 shall be
limited | ||||||
14 | by a reasonable and appropriate sunset date. A taxpayer is not
| ||||||
15 | entitled to take the exemption, credit, or deduction beginning | ||||||
16 | on the sunset
date and thereafter. If a reasonable and | ||||||
17 | appropriate sunset date is not
specified in the Public Act that | ||||||
18 | creates the exemption, credit, or deduction, a
taxpayer shall | ||||||
19 | not be entitled to take the exemption, credit, or deduction
| ||||||
20 | beginning 5 years after the effective date of the Public Act | ||||||
21 | creating the
exemption, credit, or deduction and thereafter. No | ||||||
22 | exemption, credit, or deduction against a tax imposed by this | ||||||
23 | Act that was in effect prior to September 16, 1994 (the | ||||||
24 | effective date of Public Act 88-660) may be taken on or after | ||||||
25 | December 31, 2012 unless a different sunset date is stated in |
| |||||||
| |||||||
1 | the provision setting forth the exemption, credit, or | ||||||
2 | deduction.
| ||||||
3 | (Source: P.A. 88-660, eff. 9-16-94.)
| ||||||
4 | Section 99. Effective date. This Act takes effect upon | ||||||
5 | becoming law.".
|