Public Act 103-0712
 
HB5412 EnrolledLRB103 34192 HLH 64015 b


  
    AN ACT concerning revenue.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  
 
 
    Section 5. The Reimagining Energy and  Vehicles in Illinois 
Act is amended  by changing Section 30 as follows:
 
    (20 ILCS 686/30)

    Sec. 30. Tax credit awards.  
    (a) Subject to the conditions set forth in this Act, a 
taxpayer is entitled to a credit against the tax imposed 
pursuant to subsections (a) and (b) of Section 201 of the 
Illinois Income Tax Act for a taxable year beginning on or 
after January 1, 2025 if the taxpayer is awarded a credit by 
the Department in accordance with an agreement under this Act. 
The Department has authority to award credits under this Act 
on and after January 1, 2022.
    (b) REV Illinois Credits. A taxpayer may receive a tax 
credit against the tax imposed under subsections (a) and (b) 
of Section 201 of the Illinois Income Tax Act, not to exceed 
the sum of (i) 75% of the incremental income tax attributable 
to new employees at the applicant's project and (ii) 10% of the 
training costs of the new employees. If the project is located 
in an underserved area or an energy transition area, then the 
amount of the credit may not exceed the sum of (i) 100% of the 
incremental income tax attributable to new employees at the 
applicant's project; and (ii) 10% of the training costs of the 
new employees.  The percentage of training costs includable in 
the calculation may be increased by an additional 15% for 
training costs associated with new employees that are recent 
(2 years or less) graduates, certificate holders, or 
credential recipients from an institution of higher education 
in Illinois, or, if the training is provided by an institution 
of higher education in Illinois, the Clean Jobs Workforce 
Network Program,  or an apprenticeship and training program 
located in Illinois and approved by and registered with the 
United States Department of Labor's Bureau of Apprenticeship 
and Training. An applicant is also eligible for a training 
credit that shall not exceed 10% of the training costs of 
retained employees for the purpose of upskilling to meet the 
operational needs of the applicant or the REV Illinois 
Project.   The percentage of training costs includable in the 
calculation shall not exceed a total of 25%. If an applicant 
agrees to hire the required number of new employees, then the 
maximum amount of the credit for that applicant may be 
increased by an amount not to exceed 75% of the incremental 
income tax attributable to retained employees at the 
applicant's project; provided that, in order to receive the 
increase for retained employees, the applicant must, if 
applicable, meet or exceed the statewide baseline.  For 
agreements entered into on or after the effective date of this 
amendatory Act of the 103rd General Assembly and before June 
1, 2024 that qualify under paragraph (5) of subsection (c) of 
Section 20,  a taxpayer may receive a tax credit not to exceed 
75% of the incremental income tax attributable to retained 
employees at the applicant's project. If the project is in an 
underserved area or an energy transition area and qualifies 
under paragraph (5) of subsection (c) of Section 20, then the 
maximum amount of the credit attributable to retained 
employees for the applicant may be increased to an amount not 
to exceed 100% of the incremental income tax attributable to 
retained employees at the applicant's project.
    If the Project is in an underserved area or an energy 
transition area, the maximum amount of the credit attributable 
to retained employees for the applicant may be increased to an 
amount not to exceed 100% of the incremental income tax 
attributable to retained employees at the applicant's project; 
provided that, in order to receive the increase for retained 
employees, the applicant must meet or exceed the statewide 
baseline. REV Illinois Credits awarded may include credit 
earned for incremental income tax withheld and training costs 
incurred by the taxpayer beginning on or after January 1, 
2022. Credits so earned and certified by the Department may be 
applied against the tax imposed by subsections (a) and (b) of 
Section 201 of the Illinois Income Tax Act for taxable years 
beginning on or after January 1, 2025.
    (c) REV Construction Jobs Credit. For construction wages 
associated with a project that qualified for a REV Illinois 
Credit under subsection (b), the taxpayer may receive a tax 
credit against the tax imposed under subsections (a) and (b) 
of Section 201 of the Illinois Income Tax Act in an amount 
equal to 50% of the incremental income tax attributable to 
construction wages paid in connection with construction of the 
project facilities, as a jobs credit for workers hired to 
construct the project.
    The REV Construction Jobs Credit may not exceed 75% of the 
amount of the incremental income tax attributable to 
construction wages paid in connection with construction of the 
project facilities if the project is in an underserved area or 
an energy transition area.
    (d) The Department shall certify to the Department of 
Revenue: (1) the identity of Taxpayers that are eligible for 
the REV Illinois Credit and REV Construction Jobs Credit; (2) 
the amount of the REV Illinois Credits and REV Construction 
Jobs Credits awarded in each calendar year; and (3) the amount 
of the REV Illinois Credit and REV Construction Jobs Credit 
claimed in each calendar year.  REV Illinois Credits awarded 
may include credit earned for Incremental Income Tax withheld 
and Training Costs incurred by the Taxpayer beginning on or 
after January 1, 2022. Credits so earned and certified by the 
Department may be applied against the tax imposed by Section 
201(a) and (b) of the Illinois Income Tax Act for taxable years 
beginning on or after January 1, 2025.
    (e) Applicants seeking certification for tax credits 
related to the construction of the project facilities in the 
State shall require the contractor to enter into a project 
labor agreement that conforms with the Project Labor 
Agreements Act.
    (f) Any applicant issued a certificate for a tax credit or 
tax exemption under this Act must annually report to the 
Department the total project tax benefits received. Reports 
are due no later than May 31 of each year and shall cover the 
previous calendar year. The first report is for the 2022 
calendar year and is due no later than May 31, 2023. Failure to 
report data may result in ineligibility to receive incentives. 
The Department, in consultation with the Department of 
Revenue, is authorized to adopt rules governing ineligibility 
to receive exemptions, including the length of ineligibility. 
Factors to be considered in determining whether a business is 
ineligible shall include, but are not limited to, prior 
compliance with the reporting requirements, cooperation in 
discontinuing and correcting violations, the extent of the 
violation, and whether the violation was willful or 
inadvertent. 
    For applicants issued a certificate of exemption under 
Section 105 of this Act, the report shall be the same as 
required for a High Impact Business under subsection (a-5) of 
Section 8.1 of the Illinois Enterprise Zone Act.  Failure to 
report data may result in revocation of the building materials 
exemption certificate issued to a taxpayer.  The Department of 
Revenue is authorized to adopt rules governing revocation 
determinations, including the length of revocation. Factors to 
be considered in revocations shall include, but are not 
limited to, prior compliance with the reporting requirements, 
cooperation in discontinuing and correcting violations, and 
whether the certificate was used unlawfully during the 
preceding year. 
    Each person required to file a return under the Gas 
Revenue Tax Act, the Electricity Excise Tax Law, or the 
Telecommunications Excise Tax Act shall file a report 
containing information about customers that are issued an 
exemption certificate under Section 95 of this Act in the same 
manner and form as they are required to report under 
subsection (b) of Section 8.1 of the Illinois Enterprise Zone 
Act.
    (g) Nothing in this Act shall prohibit an award of credit 
to an applicant that uses a PEO if all other award criteria are 
satisfied.
    (h) With respect to any portion of a REV Illinois Credit 
that is based on the incremental income tax attributable to 
new employees or retained employees, in lieu of the Credit 
allowed under this Act against the taxes imposed pursuant to 
subsections (a) and (b) of Section 201 of the Illinois Income 
Tax Act, a taxpayer that otherwise meets the criteria set 
forth in this Section, the taxpayer may elect to claim the 
credit, on or after January 1, 2025, against its obligation to 
pay over withholding under Section 704A of the Illinois Income 
Tax Act. The election shall be made in the manner prescribed by 
the Department of Revenue and once made shall be irrevocable.

    (i)  The Department of Revenue, in its discretion, may 
require that the reports filed under this Section be submitted 
electronically. 
    (j)  The Department of Revenue shall have the authority to 
adopt rules as are reasonable and necessary to implement the 
provisions of this Section. 
(Source: P.A. 102-669, eff. 11-16-21; 102-1112, eff. 12-21-22; 
102-1125, eff. 2-3-23; 103-9, eff. 6-7-23.)
 
    Section 10. The Manufacturing Illinois Chips for Real 
Opportunity (MICRO) Act is amended  by changing Section 110-30 
as follows:
 
    (35 ILCS 45/110-30)

    Sec. 110-30. Tax credit awards.  
    (a) Subject to the conditions set forth in this Act, a 
taxpayer is entitled to a credit against the tax imposed 
pursuant to subsections (a) and (b) of Section 201 of the 
Illinois Income Tax Act for a taxable year beginning on or 
after January 1, 2025 if the taxpayer is awarded a credit by 
the Department in accordance with an agreement under this Act. 
The Department has authority to award credits under this Act 
on and after January 1, 2023.
    (b) A taxpayer may receive a tax credit against the tax 
imposed under subsections (a) and (b) of Section 201 of the 
Illinois Income Tax Act, not to exceed the sum of (i) 75% of 
the incremental income tax attributable to new employees at 
the applicant's project and (ii) 10% of the training costs of 
the new employees. If the project is located in an underserved 
area or an energy transition area, then the amount of the 
credit may not exceed the sum of (i) 100% of the incremental 
income tax attributable to new employees at the applicant's 
project; and (ii) 10% of the training costs of the new 
employees.  The percentage of training costs includable in the 
calculation may be increased by an additional 15% for training 
costs associated with new employees that are recent (2 years 
or less) graduates, certificate holders, or credential 
recipients from an institution of higher education in 
Illinois, or, if the training is provided by an institution of 
higher education in Illinois, the Clean Jobs Workforce Network 
Program,  or an apprenticeship and training program located in 
Illinois and approved by and registered with the United States 
Department of Labor's Bureau of Apprenticeship and Training. 
An applicant is also eligible for a training credit that shall 
not exceed 10% of the training costs of retained employees for 
the purpose of upskilling to meet the operational needs of the 
applicant or the project.   The percentage of training costs 
includable in the calculation shall not exceed a total of 25%. 
If an applicant agrees to hire the required number of new 
employees, then the maximum amount of the credit for that 
applicant may be increased by an amount not to exceed 75% of 
the incremental income tax attributable to retained employees 
at the applicant's project; provided that, in order to receive 
the increase for retained employees, the applicant must, if 
applicable, meet or exceed the statewide baseline.  If the 
Project is in an underserved area or an energy transition 
area, the maximum amount of the credit attributable to 
retained employees for the applicant may be increased to an 
amount not to exceed 100% of the incremental income tax 
attributable to retained employees at the applicant's project; 
provided that, in order to receive the increase for retained 
employees, the applicant must meet or exceed the statewide 
baseline. Credits awarded may include credit earned for 
incremental income tax withheld and training costs incurred by 
the taxpayer beginning on or after January 1, 2023. Credits so 
earned and certified by the Department may be applied against 
the tax imposed by subsections (a) and (b) of Section 201 of 
the Illinois Income Tax Act for taxable years beginning on or 
after January 1, 2025.
    (c) MICRO Construction Jobs Credit. For construction wages 
associated with a project that qualified for a credit under 
subsection (b), the taxpayer may receive a tax credit against 
the tax imposed under subsections (a) and (b) of Section 201 of 
the Illinois Income Tax Act in an amount equal to 50% of the 
incremental income tax attributable to construction wages paid 
in connection with construction of the project facilities, as 
a jobs credit for workers hired to construct the project.
    The MICRO Construction Jobs Credit may not exceed 75% of 
the amount of the incremental income tax attributable to 
construction wages paid in connection with construction of the 
project facilities if the project is in an underserved area or 
an energy transition area.
    (d) The Department shall certify to the Department of 
Revenue: (1) the identity of taxpayers that are eligible for 
the MICRO Credit and MICRO Construction Jobs Credit; (2) the 
amount of the MICRO Credits and MICRO Construction Jobs 
Credits awarded in each calendar year; and (3) the amount of 
the MICRO Credit and MICRO Construction Jobs Credit claimed in 
each calendar year.  MICRO Credits awarded may include credit 
earned for incremental income tax withheld and training costs 
incurred by the taxpayer beginning on or after January 1, 
2023. Credits so earned and certified by the Department may be 
applied against the tax imposed by Section 201(a) and (b) of 
the Illinois Income Tax Act for taxable years beginning on or 
after January 1, 2025.
    (e) Applicants seeking certification for a tax credits 
related to the construction of the project facilities in the 
State shall require the contractor to enter into a project 
labor agreement that conforms with the Project Labor 
Agreements Act.
    (f) Any applicant issued a certificate for a tax credit or 
tax exemption under this Act must annually report to the 
Department the total project tax benefits received. Reports 
are due no later than May 31 of each year and shall cover the 
previous calendar year. The first report is for the 2023 
calendar year and is due no later than May 31, 2023. Failure to 
report data may result in ineligibility to receive incentives. 
The Department, in consultation with the Department of 
Revenue, is authorized to adopt rules governing ineligibility 
to receive exemptions, including the length of ineligibility. 
Factors to be considered in determining whether a business is 
ineligible shall include, but are not limited to, prior 
compliance with the reporting requirements, cooperation in 
discontinuing and correcting violations, the extent of the 
violation, and whether the violation was willful or 
inadvertent. 
    For applicants issued a certificate of exemption under 
Section 110-105 of this Act, the report shall be the same as 
required for a High Impact Business under subsection (a-5) of 
Section 8.1 of the Illinois Enterprise Zone Act.  Failure to 
report data may result in revocation of the building materials 
exemption certificate issued to a taxpayer. The Department of 
Revenue is authorized to adopt rules governing revocation 
determinations, including the length of revocation. Factors to 
be considered in revocations shall include, but are not 
limited to, prior compliance with the reporting requirements, 
cooperation in discontinuing and correcting violations, and 
whether the certificate was used unlawfully during the 
preceding year. 
    Each person required to file a return under the Gas 
Revenue Tax Act, the Electricity Excise Tax Act, or the 
Telecommunications Excise Tax Act shall file a report on 
customers issued an exemption certificate under Section 110-95 
of this Act in the same manner and form as they are required to 
report under subsection (b) of Section 8.1 of the Illinois 
Enterprise Zone Act. 
    (g) Nothing in this Act shall prohibit an award of credit 
to an applicant that uses a PEO if all other award criteria are 
satisfied.
    (h) With respect to any portion of a credit that is based 
on the incremental income tax attributable to new employees or 
retained employees, in lieu of the credit allowed under this 
Act against the taxes imposed pursuant to subsections (a) and 
(b) of Section 201 of the Illinois Income Tax Act, a taxpayer 
that otherwise meets the criteria set forth in this Section, 
the taxpayer may elect to claim the credit, on or after January 
1, 2025, against its obligation to pay over withholding under 
Section 704A of the Illinois Income Tax Act. The election 
shall be made in the manner prescribed by the Department of 
Revenue and once made shall be irrevocable.

    (i)  The Department of Revenue, in its discretion, may 
require that the reports filed under this Section be submitted 
electronically. 
    (j)  The Department of Revenue shall have the authority to 
adopt rules as are reasonable and necessary to implement the 
provisions of this Section. 
(Source: P.A. 102-700, eff. 4-19-22; 102-1125, eff. 2-3-23; 
revised 4-5-23.)
 
    Section 15. The Retailers' Occupation Tax Act is amended  
by changing Sections 5m and 5n as follows:
 
    (35 ILCS 120/5m)
    Sec. 5m. Building materials exemption; REV Illinois 
projects. Each retailer who makes a sale of building materials 
that will be incorporated into a REV Illinois Project for 
which a certificate of exemption has been issued by the 
Department of Commerce and Economic Opportunity under Section 
105 of the Reimagining Energy and Vehicles in Illinois Act may 
deduct receipts from those sales when calculating any State or 
local use and occupation taxes. No retailer who is eligible 
for the deduction or credit under Section 5k of this Act 
related to enterprise zones or Section 5l of this Act related 
to High Impact Businesses for a given sale shall be eligible 
for the deduction or credit authorized under this Section for 
that same sale.
    To In addition to any other requirements to document the 
exemption allowed under this Section, the retailer must obtain 
from the purchaser the purchaser's REV Illinois Building 
Materials Exemption certificate number issued by the 
Department and a certification that contains: . 
        (1)  a statement that the building materials are being 
    purchased for incorporation into a REV Illinois Project; 
        (2)  the location or address of the real estate into 
    which the building materials will be incorporated; 
        (3)  the name and address of the construction 
    contractor or other entity; 
        (4)  a description of the building materials being 
    purchased; 
        (5)  the purchaser's REV Illinois Building Materials 
    Exemption Certificate number issued by the Department of 
    Revenue; and 
        (6)  the purchaser's signature and date of purchase. 
    A construction contractor or other entity shall not make 
tax-free purchases under this Section unless it has an active 
REV Illinois Building Materials Exemption Certificate issued 
by the Department at the time of purchase. 
    Upon request from the certified manufacturer, the 
Department shall issue a REV Illinois Building Materials 
Exemption Certificate for each construction contractor or 
other entity identified by the certified manufacturer. The 
Department shall make the REV Illinois Building Materials 
Exemption Certificates available to each construction 
contractor or other entity identified by the certified 
manufacturer and to the certified manufacturer. The request 
for REV Illinois Building Materials Exemption Certificates 
under this Section must include the following information: 
        (1) the name and address of the construction 
    contractor or other entity; 
        (2) the name and location or address of the building 
    project site; 
        (3) the estimated amount of the exemption for each 
    construction contractor or other entity for which a 
    request for a REV Illinois Building Materials Exemption 
    Certificate is made, based on a stated estimated average 
    tax rate and the percentage of the contract that consists 
    of materials; 
        (4) the period of time over which supplies for the 
    project are expected to be purchased; and 
        (5) other reasonable information as the Department may 
    require, including but not limited to FEIN numbers, to 
    determine if the contractor or other entity, or any 
    partner, or a corporate officer, and in the case of a 
    limited liability company, any manager or member, of the 
    construction contractor or other entity, is or has been 
    the owner, a partner, a corporate officer, and in the case 
    of a limited liability company, a manager or member, of a 
    person that is in default for moneys due to the Department 
    under this Act or any other tax or fee Act administered by 
    the Department. 
    The Department shall issue the REV Illinois Building 
Materials Exemption Certificates within 3 business days after 
receipt of the request from the certified manufacturer. This 
requirement does not apply in circumstances where the 
Department, for reasonable cause, is unable to issue the 
Exemption Certificate within 3 business days. The Department 
may refuse to issue a REV Illinois Building Materials 
Exemption Certificate if the owner, any partner, or a 
corporate officer, and in the case of a limited liability 
company, any manager or member, of the construction contractor 
or other entity is or has been the owner, a partner, a 
corporate officer, and in the case of a limited liability 
company, a manager or member, of a person that is in default 
for moneys due to the Department under this Act or any other 
tax or fee Act administered by the Department. 
    The REV Illinois Building Materials Exemption Certificate 
shall contain language stating that if the construction 
contractor or other entity who is issued the Exemption 
Certificate makes a tax-exempt purchase, as described in this 
Section, that is not eligible for exemption under this Section 
or allows another person to make a tax-exempt purchase, as 
described in this Section, that is not eligible for exemption 
under this Section, then, in addition to any tax or other 
penalty imposed, the construction contractor or other entity 
is subject to a penalty equal to the tax that would have been 
paid by the retailer under this Act as well as any applicable 
local retailers' occupation tax on the purchase that is not 
eligible for the exemption. 
    The Department, in its discretion, may require that the 
request for REV Illinois Building Materials Exemption 
Certificates be submitted electronically. The Department may, 
in its discretion, issue the Exemption Certificates 
electronically. The REV Illinois Building Materials Exemption 
Certificate number shall be designed in such a way that the 
Department can identify from the unique number on the 
Exemption Certificate issued to a given construction 
contractor or other entity, the name of the REV Illinois 
project site and the construction contractor or other entity 
to whom the Exemption Certificate is issued. The REV Illinois 
Building Materials Exemption Certificate shall contain an 
expiration date, which shall be no more than 5 years after the 
date of issuance. At the request of the certified 
manufacturer, the Department may renew a REV Illinois Building 
Materials Exemption Certificate. After the Department issues 
Exemption Certificates for a given REV Illinois project site, 
the certified manufacturer may notify the Department of 
additional construction contractors or other entities that are 
eligible for a REV Illinois Building Materials Exemption 
Certificate. Upon receiving such a notification and subject to 
the other provisions of this Section, the Department shall 
issue a REV Illinois Building Materials Exemption Certificate 
to each additional construction contractor or other entity so 
identified. A certified manufacturer may ask the Department to 
rescind a REV Illinois Building Materials Exemption 
Certificate previously issued by the Department to a 
construction contractor or other entity working at that 
certified manufacturer's REV Illinois project site if that REV 
Illinois Building Materials Exemption Certificate has not yet 
expired. Upon receiving such a request and subject to the 
other provisions of this Section, the Department shall issue 
the rescission of the REV Illinois Building Materials 
Exemption Certificate to the construction contractor or other 
entity identified by the certified manufacturer and provide a 
copy of the rescission to the construction contractor or other 
entity and to the certified manufacturer. 
    If the Department of Revenue determines that a 
construction contractor or other entity that was issued an 
Exemption Certificate under this Section made a tax-exempt 
purchase, as described in this Section, that was not eligible 
for exemption under this Section or allowed another person to 
make a tax-exempt purchase, as described in this Section, that 
was not eligible for exemption under this Section, then, in 
addition to any tax or other penalty imposed, the construction 
contractor or other entity is subject to a penalty equal to the 
tax that would have been paid by the retailer under this Act as 
well as any applicable local retailers' occupation tax on the 
purchase that was not eligible for the exemption. 
    This Section is exempt from the provisions of Section 
2-70. 

    As used in this Section, "certified manufacturer" means a 
person certified by the Department of Commerce and Economic 
Opportunity under Section 105 of the Reimagining Energy and 
Vehicles in Illinois Act. 
(Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23.)
 
    (35 ILCS 120/5n)
    Sec. 5n. Building materials exemption; microchip and 
semiconductor manufacturing.  Each retailer who makes a sale of 
building materials that will be incorporated into real estate 
in a qualified facility for which a certificate of exemption 
has been issued by the Department of Commerce and Economic 
Opportunity under Section 110-105 of the Manufacturing 
Illinois Chips for Real Opportunity (MICRO) Act, may deduct 
receipts from such sales when calculating any State or local 
use and occupation taxes. No retailer who is eligible for the 
deduction or credit under Section 5k of this Act related to 
enterprise zones or Section 5l of this Act related to High 
Impact Businesses for a given sale shall be eligible for the 
deduction or credit authorized under this Section for that 
same sale.
    To In addition to any other requirements to document the 
exemption allowed under this Section, the retailer must obtain 
from the purchaser the purchaser's exemption certificate 
number issued by the Department and a certification that 
contains: . 
        (1)  a statement that the building materials are being 
    purchased for incorporation into real estate in a 
    qualified facility; 
        (2)  the location or address of the real estate into 
    which the building materials will be incorporated; 
        (3)  the name and address of the construction 
    contractor or other entity; 
        (4)  a description of the building materials being 
    purchased; 
        (5)  the purchaser's MICRO Illinois Building Materials 
    Exemption Certificate number issued by the Department of 
    Revenue; and 
        (6)  the purchaser's signature and date of purchase. 
    A construction contractor or other entity shall not make 
tax-free purchases unless it has an active exemption 
certificate issued by the Department at the time of purchase. 
    Upon request from a person that has been certified by the 
Department of Commerce and Economic Opportunity under the 
Manufacturing Illinois Chips for Real Opportunity (MICRO) Act, 
the Department shall issue a MICRO Illinois Building Materials 
Exemption Certificate for each construction contractor or 
other entity identified by the person so certified. The 
Department shall make the MICRO Illinois Building Materials 
Exemption Certificates available to each construction 
contractor or other entity as well as the person certified 
under the Manufacturing Illinois Chips for Real Opportunity 
(MICRO) Act. The request for MICRO Illinois Building Materials 
Exemption Certificates must include the following information: 
        (1) the name and address of the construction 
    contractor or other entity; 
        (2) the name and location or address of the building 
    project site; 
        (3) the estimated amount of the exemption for each 
    construction contractor or other entity for which a 
    request for an exemption certificate is made, based on a 
    stated estimated average tax rate and the percentage of 
    the contract that consists of materials; 
        (4) the period of time over which supplies for the 
    project are expected to be purchased; and 
        (5) other reasonable information as the Department may 
    require, including but not limited to FEIN numbers, to 
    determine if the contractor or other entity, or any 
    partner, or a corporate officer, and in the case of a 
    limited liability company, any manager or member, of the 
    construction contractor or other entity, is or has been 
    the owner, a partner, a corporate officer, and in the case 
    of a limited liability company, a manager or member, of a 
    person that is in default for moneys due to the Department 
    under this Act or any other tax or fee Act administered by 
    the Department. 
    The Department shall issue the exemption certificate 
within 3 business days after receipt of request. This 
requirement does not apply in circumstances where the 
Department, for reasonable cause, is unable to issue the 
exemption certificate within 3 business days. The Department 
may refuse to issue an  exemption certificate under this 
Section if the owner, any partner, or a corporate officer, and 
in the case of a limited liability company, any manager or 
member, of the construction contractor or other entity is or 
has been the owner, a partner, a corporate officer, and in the 
case of a limited liability company, a manager or member, of a 
person that is in default for moneys due to the Department 
under this Act or any other tax or fee Act administered by the 
Department. 
    The MICRO Illinois Building Materials Exemption 
Certificate shall contain language stating that, if the 
construction contractor or other entity who is issued the 
exemption certificate makes a tax-exempt purchase, as 
described in this Section, that is not eligible for exemption 
under this Section or allows another person to make a 
tax-exempt purchase, as described in this Section, that is not 
eligible for exemption under this Section, then, in addition 
to any tax or other penalty imposed, the construction 
contractor or other entity is subject to a penalty equal to the 
tax that would have been paid by the retailer under this Act as 
well as any applicable local retailers' occupation tax on the 
purchase that is not eligible for the exemption. 
    The Department, in its discretion, may require that the 
request for a MICRO Illinois Exemption Certificate be 
submitted electronically. The Department may, in its 
discretion, issue the exemption certificates electronically. 
The MICRO Illinois Building Materials Exemption Certificate 
number shall be designed in such a way that the Department can 
identify from the unique number on the exemption certificate 
issued to a given construction contractor or other entity, the 
name of the entity to whom the exemption certificate is 
issued. The MICRO Illinois Building Materials Exemption 
Certificate shall contain an expiration date, which shall be 
no more than 5 years after the date of issuance. At the request 
of the entity to whom the exemption certificate is issued, the 
Department may renew an exemption certificate issued under 
this Section. After the Department issues exemption 
certificates under this Section, the certified entity may 
notify the Department of additional construction contractors 
or other entities eligible for an exemption certificate under 
this Section. Upon such a notification and subject to the 
other provisions of this Section, the Department shall issue 
an exemption certificate to each additional qualified 
construction contractor or other entity so identified. A 
certified entity may notify the Department to rescind an 
exemption certificate previously issued by the Department that 
has not yet expired. Upon such a notification and subject to 
the other provisions of this Section, the Department shall 
rescind the exemption certificate. 
    If the Department of Revenue determines that a 
construction contractor or other entity that was issued an 
exemption certificate under this Section made a tax-exempt 
purchase, as described in this Section, that was not eligible 
for exemption under this Section or allowed another person to 
make a tax-exempt purchase, as described in this Section, that 
was not eligible for exemption under this Section, then, in 
addition to any tax or other penalty imposed, the construction 
contractor or other entity is subject to a penalty equal to the 
tax that would have been paid by the retailer under this Act as 
well as any applicable local retailers' occupation tax on the 
purchase that was not eligible for the exemption. 
    This Section is exempt from the provisions of Section 
2-70. 

(Source: P.A. 102-700, eff. 4-19-22.)
 
 
    Section 99. Effective date. This Act takes effect upon 
becoming law. 
  


Effective Date:  7/19/2024