Rep. Michael J. Zalewski

Filed: 4/8/2022

 

 


 

 


 
10200SB0157ham002LRB102 10128 HLH 39050 a

1
AMENDMENT TO SENATE BILL 157

2    AMENDMENT NO. ______. Amend Senate Bill 157 by replacing
3everything after the enacting clause with the following:
 
4
"ARTICLE 5. EDGE CREDIT

 
5    Section 5-5. The Economic Development for a Growing
6Economy Tax Credit Act is amended by changing Sections 5-5,
75-15, 5-20, and 5-77 as follows:
 
8    (35 ILCS 10/5-5)
9    Sec. 5-5. Definitions. As used in this Act:
10    "Agreement" means the Agreement between a Taxpayer and the
11Department under the provisions of Section 5-50 of this Act.
12    "Applicant" means a Taxpayer that is operating a business
13located or that the Taxpayer plans to locate within the State
14of Illinois and that is engaged in interstate or intrastate
15commerce for the purpose of manufacturing, processing,

 

 

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1assembling, warehousing, or distributing products, conducting
2research and development, providing tourism services, or
3providing services in interstate commerce, office industries,
4or agricultural processing, but excluding retail, retail food,
5health, or professional services. "Applicant" does not include
6a Taxpayer who closes or substantially reduces an operation at
7one location in the State and relocates substantially the same
8operation to another location in the State. This does not
9prohibit a Taxpayer from expanding its operations at another
10location in the State, provided that existing operations of a
11similar nature located within the State are not closed or
12substantially reduced. This also does not prohibit a Taxpayer
13from moving its operations from one location in the State to
14another location in the State for the purpose of expanding the
15operation provided that the Department determines that
16expansion cannot reasonably be accommodated within the
17municipality in which the business is located, or in the case
18of a business located in an incorporated area of the county,
19within the county in which the business is located, after
20conferring with the chief elected official of the municipality
21or county and taking into consideration any evidence offered
22by the municipality or county regarding the ability to
23accommodate expansion within the municipality or county.
24    "Credit" means the amount agreed to between the Department
25and Applicant under this Act, but not to exceed the lesser of:
26(1) the sum of (i) 50% of the Incremental Income Tax

 

 

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1attributable to New Employees at the Applicant's project and
2(ii) 10% of the training costs of New Employees; or (2) 100% of
3the Incremental Income Tax attributable to New Employees at
4the Applicant's project. However, if the project is located in
5an underserved area, then the amount of the Credit may not
6exceed the lesser of: (1) the sum of (i) 75% of the Incremental
7Income Tax attributable to New Employees at the Applicant's
8project and (ii) 10% of the training costs of New Employees; or
9(2) 100% of the Incremental Income Tax attributable to New
10Employees at the Applicant's project. If an Applicant agrees
11to hire the required number of New Employees, then the maximum
12amount of the Credit for that Applicant may be increased by an
13amount not to exceed 25% of the Incremental Income Tax
14attributable to retained employees at the Applicant's project;
15provided that, in order to receive the increase for retained
16employees, the Applicant must provide the additional evidence
17required under paragraph (3) of subsection (b) of Section
185-25.
19    "Department" means the Department of Commerce and Economic
20Opportunity.
21    "Director" means the Director of Commerce and Economic
22Opportunity.
23    "Full-time Employee" means an individual who is employed
24for consideration for at least 35 hours each week or who
25renders any other standard of service generally accepted by
26industry custom or practice as full-time employment. An

 

 

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1individual for whom a W-2 is issued by a Professional Employer
2Organization (PEO) is a full-time employee if employed in the
3service of the Applicant for consideration for at least 35
4hours each week or who renders any other standard of service
5generally accepted by industry custom or practice as full-time
6employment to Applicant.
7    "Incremental Income Tax" means the total amount withheld
8during the taxable year from the compensation of New Employees
9and, if applicable, retained employees under Article 7 of the
10Illinois Income Tax Act arising from employment at a project
11that is the subject of an Agreement.
12    "New Construction EDGE Agreement" means the Agreement
13between a Taxpayer and the Department under the provisions of
14Section 5-51 of this Act.
15    "New Construction EDGE Credit" means an amount agreed to
16between the Department and the Applicant under this Act as
17part of a New Construction EDGE Agreement that does not exceed
1850% of the Incremental Income Tax attributable to New
19Construction EDGE Employees at the Applicant's project;
20however, if the New Construction EDGE Project is located in an
21underserved area, then the amount of the New Construction EDGE
22Credit may not exceed 75% of the Incremental Income Tax
23attributable to New Construction EDGE Employees at the
24Applicant's New Construction EDGE Project.
25    "New Construction EDGE Employee" means a laborer or worker
26who is employed by an Illinois contractor or subcontractor in

 

 

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1the actual construction work on the site of a New Construction
2EDGE Project, pursuant to a New Construction EDGE Agreement.
3    "New Construction EDGE Incremental Income Tax" means the
4total amount withheld during the taxable year from the
5compensation of New Construction EDGE Employees.
6    "New Construction EDGE Project" means the building of a
7Taxpayer's structure or building, or making improvements of
8any kind to real property. "New Construction EDGE Project"
9does not include the routine operation, routine repair, or
10routine maintenance of existing structures, buildings, or real
11property.
12    "New Employee" means:
13        (a) A Full-time Employee first employed by a Taxpayer
14    in the project that is the subject of an Agreement and who
15    is hired after the Taxpayer enters into the tax credit
16    Agreement.
17        (b) The term "New Employee" does not include:
18            (1) an employee of the Taxpayer who performs a job
19        that was previously performed by another employee, if
20        that job existed for at least 6 months before hiring
21        the employee;
22            (2) an employee of the Taxpayer who was previously
23        employed in Illinois by a Related Member of the
24        Taxpayer and whose employment was shifted to the
25        Taxpayer after the Taxpayer entered into the tax
26        credit Agreement; or

 

 

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1            (3) a child, grandchild, parent, or spouse, other
2        than a spouse who is legally separated from the
3        individual, of any individual who has a direct or an
4        indirect ownership interest of at least 5% in the
5        profits, capital, or value of the Taxpayer.
6        (c) Notwithstanding paragraph (1) of subsection (b),
7    an employee may be considered a New Employee under the
8    Agreement if the employee performs a job that was
9    previously performed by an employee who was:
10            (1) treated under the Agreement as a New Employee;
11        and
12            (2) promoted by the Taxpayer to another job.
13        (d) Notwithstanding subsection (a), the Department may
14    award Credit to an Applicant with respect to an employee
15    hired prior to the date of the Agreement if:
16            (1) the Applicant is in receipt of a letter from
17        the Department stating an intent to enter into a
18        credit Agreement;
19            (2) the letter described in paragraph (1) is
20        issued by the Department not later than 15 days after
21        the effective date of this Act; and
22            (3) the employee was hired after the date the
23        letter described in paragraph (1) was issued.
24    "Noncompliance Date" means, in the case of a Taxpayer that
25is not complying with the requirements of the Agreement or the
26provisions of this Act, the day following the last date upon

 

 

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1which the Taxpayer was in compliance with the requirements of
2the Agreement and the provisions of this Act, as determined by
3the Director, pursuant to Section 5-65.
4    "Pass Through Entity" means an entity that is exempt from
5the tax under subsection (b) or (c) of Section 205 of the
6Illinois Income Tax Act.
7    "Professional Employer Organization" (PEO) means an
8employee leasing company, as defined in Section 206.1(A)(2) of
9the Illinois Unemployment Insurance Act.
10    "Related Member" means a person that, with respect to the
11Taxpayer during any portion of the taxable year, is any one of
12the following:
13        (1) An individual stockholder, if the stockholder and
14    the members of the stockholder's family (as defined in
15    Section 318 of the Internal Revenue Code) own directly,
16    indirectly, beneficially, or constructively, in the
17    aggregate, at least 50% of the value of the Taxpayer's
18    outstanding stock.
19        (2) A partnership, estate, or trust and any partner or
20    beneficiary, if the partnership, estate, or trust, and its
21    partners or beneficiaries own directly, indirectly,
22    beneficially, or constructively, in the aggregate, at
23    least 50% of the profits, capital, stock, or value of the
24    Taxpayer.
25        (3) A corporation, and any party related to the
26    corporation in a manner that would require an attribution

 

 

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1    of stock from the corporation to the party or from the
2    party to the corporation under the attribution rules of
3    Section 318 of the Internal Revenue Code, if the Taxpayer
4    owns directly, indirectly, beneficially, or constructively
5    at least 50% of the value of the corporation's outstanding
6    stock.
7        (4) A corporation and any party related to that
8    corporation in a manner that would require an attribution
9    of stock from the corporation to the party or from the
10    party to the corporation under the attribution rules of
11    Section 318 of the Internal Revenue Code, if the
12    corporation and all such related parties own in the
13    aggregate at least 50% of the profits, capital, stock, or
14    value of the Taxpayer.
15        (5) A person to or from whom there is attribution of
16    stock ownership in accordance with Section 1563(e) of the
17    Internal Revenue Code, except, for purposes of determining
18    whether a person is a Related Member under this paragraph,
19    20% shall be substituted for 5% wherever 5% appears in
20    Section 1563(e) of the Internal Revenue Code.
21    "Startup taxpayer" means a corporation, partnership, or
22other entity incorporated or organized no more than 5 years
23before the filing of an application for an Agreement that has
24never had any Illinois income tax liability, excluding any
25Illinois income tax liability of a Related Member which shall
26not be attributed to the startup taxpayer.

 

 

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

 

 

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1    to the latest American Community Survey;
2        (3) at least 20% of the households in the area receive
3    assistance under the Supplemental Nutrition Assistance
4    Program (SNAP); or
5        (4) the area has an average unemployment rate, as
6    determined by the Illinois Department of Employment
7    Security, that is more than 120% of the national
8    unemployment average, as determined by the U.S. Department
9    of Labor, for a period of at least 2 consecutive calendar
10    years preceding the date of the application.
11(Source: P.A. 101-9, eff. 6-5-19; 102-330, eff. 1-1-22.)
 
12    (35 ILCS 10/5-15)
13    Sec. 5-15. Tax Credit Awards. Subject to the conditions
14set forth in this Act, a Taxpayer is entitled to a Credit
15against or, as described in subsection (g) of this Section, a
16payment towards taxes imposed pursuant to subsections (a) and
17(b) of Section 201 of the Illinois Income Tax Act that may be
18imposed on the Taxpayer for a taxable year beginning on or
19after January 1, 1999, if the Taxpayer is awarded a Credit by
20the Department under this Act for that taxable year.
21    (a) The Department shall make Credit awards under this Act
22to foster job creation and retention in Illinois.
23    (b) A person that proposes a project to create new jobs in
24Illinois must enter into an Agreement with the Department for
25the Credit under this Act.

 

 

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1    (c) The Credit shall be claimed for the taxable years
2specified in the Agreement.
3    (d) The Credit shall not exceed the Incremental Income Tax
4attributable to the project that is the subject of the
5Agreement.
6    (e) Nothing herein shall prohibit a Tax Credit Award to an
7Applicant that uses a PEO if all other award criteria are
8satisfied.
9    (f) In lieu of the Credit allowed under this Act against
10the taxes imposed pursuant to subsections (a) and (b) of
11Section 201 of the Illinois Income Tax Act for any taxable year
12ending on or after December 31, 2009, for Taxpayers that
13entered into Agreements prior to January 1, 2015 and otherwise
14meet the criteria set forth in this subsection (f), the
15Taxpayer may elect to claim the Credit against its obligation
16to pay over withholding under Section 704A of the Illinois
17Income Tax Act.
18        (1) The election under this subsection (f) may be made
19    only by a Taxpayer that (i) is primarily engaged in one of
20    the following business activities: water purification and
21    treatment, motor vehicle metal stamping, automobile
22    manufacturing, automobile and light duty motor vehicle
23    manufacturing, motor vehicle manufacturing, light truck
24    and utility vehicle manufacturing, heavy duty truck
25    manufacturing, motor vehicle body manufacturing, cable
26    television infrastructure design or manufacturing, or

 

 

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1    wireless telecommunication or computing terminal device
2    design or manufacturing for use on public networks and
3    (ii) meets the following criteria:
4            (A) the Taxpayer (i) had an Illinois net loss or an
5        Illinois net loss deduction under Section 207 of the
6        Illinois Income Tax Act for the taxable year in which
7        the Credit is awarded, (ii) employed a minimum of
8        1,000 full-time employees in this State during the
9        taxable year in which the Credit is awarded, (iii) has
10        an Agreement under this Act on December 14, 2009 (the
11        effective date of Public Act 96-834), and (iv) is in
12        compliance with all provisions of that Agreement;
13            (B) the Taxpayer (i) had an Illinois net loss or an
14        Illinois net loss deduction under Section 207 of the
15        Illinois Income Tax Act for the taxable year in which
16        the Credit is awarded, (ii) employed a minimum of
17        1,000 full-time employees in this State during the
18        taxable year in which the Credit is awarded, and (iii)
19        has applied for an Agreement within 365 days after
20        December 14, 2009 (the effective date of Public Act
21        96-834);
22            (C) the Taxpayer (i) had an Illinois net operating
23        loss carryforward under Section 207 of the Illinois
24        Income Tax Act in a taxable year ending during
25        calendar year 2008, (ii) has applied for an Agreement
26        within 150 days after the effective date of this

 

 

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1        amendatory Act of the 96th General Assembly, (iii)
2        creates at least 400 new jobs in Illinois, (iv)
3        retains at least 2,000 jobs in Illinois that would
4        have been at risk of relocation out of Illinois over a
5        10-year period, and (v) makes a capital investment of
6        at least $75,000,000;
7            (D) the Taxpayer (i) had an Illinois net operating
8        loss carryforward under Section 207 of the Illinois
9        Income Tax Act in a taxable year ending during
10        calendar year 2009, (ii) has applied for an Agreement
11        within 150 days after the effective date of this
12        amendatory Act of the 96th General Assembly, (iii)
13        creates at least 150 new jobs, (iv) retains at least
14        1,000 jobs in Illinois that would have been at risk of
15        relocation out of Illinois over a 10-year period, and
16        (v) makes a capital investment of at least
17        $57,000,000; or
18            (E) the Taxpayer (i) employed at least 2,500
19        full-time employees in the State during the year in
20        which the Credit is awarded, (ii) commits to make at
21        least $500,000,000 in combined capital improvements
22        and project costs under the Agreement, (iii) applies
23        for an Agreement between January 1, 2011 and June 30,
24        2011, (iv) executes an Agreement for the Credit during
25        calendar year 2011, and (v) was incorporated no more
26        than 5 years before the filing of an application for an

 

 

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1        Agreement.
2        (1.5) The election under this subsection (f) may also
3    be made by a Taxpayer for any Credit awarded pursuant to an
4    agreement that was executed between January 1, 2011 and
5    June 30, 2011, if the Taxpayer (i) is primarily engaged in
6    the manufacture of inner tubes or tires, or both, from
7    natural and synthetic rubber, (ii) employs a minimum of
8    2,400 full-time employees in Illinois at the time of
9    application, (iii) creates at least 350 full-time jobs and
10    retains at least 250 full-time jobs in Illinois that would
11    have been at risk of being created or retained outside of
12    Illinois, and (iv) makes a capital investment of at least
13    $200,000,000 at the project location.
14        (1.6) The election under this subsection (f) may also
15    be made by a Taxpayer for any Credit awarded pursuant to an
16    agreement that was executed within 150 days after the
17    effective date of this amendatory Act of the 97th General
18    Assembly, if the Taxpayer (i) is primarily engaged in the
19    operation of a discount department store, (ii) maintains
20    its corporate headquarters in Illinois, (iii) employs a
21    minimum of 4,250 full-time employees at its corporate
22    headquarters in Illinois at the time of application, (iv)
23    retains at least 4,250 full-time jobs in Illinois that
24    would have been at risk of being relocated outside of
25    Illinois, (v) had a minimum of $40,000,000,000 in total
26    revenue in 2010, and (vi) makes a capital investment of at

 

 

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1    least $300,000,000 at the project location.
2        (1.7) Notwithstanding any other provision of law, the
3    election under this subsection (f) may also be made by a
4    Taxpayer for any Credit awarded pursuant to an agreement
5    that was executed or applied for on or after July 1, 2011
6    and on or before March 31, 2012, if the Taxpayer is
7    primarily engaged in the manufacture of original and
8    aftermarket filtration parts and products for automobiles,
9    motor vehicles, light duty motor vehicles, light trucks
10    and utility vehicles, and heavy duty trucks, (ii) employs
11    a minimum of 1,000 full-time employees in Illinois at the
12    time of application, (iii) creates at least 250 full-time
13    jobs in Illinois, (iv) relocates its corporate
14    headquarters to Illinois from another state, and (v) makes
15    a capital investment of at least $4,000,000 at the project
16    location.
17        (1.8) Notwithstanding any other provision of law, the
18    election under this subsection (f) may also be made by a
19    startup taxpayer for any Credit awarded pursuant to an
20    Agreement that was executed or applied for on or after the
21    effective date of this amendatory Act of the 102nd General
22    Assembly, if the startup taxpayer, without considering any
23    Related Member or other investor, (i) has never had any
24    Illinois income tax liability and (ii) was incorporated no
25    more than 5 years before the filing of an application for
26    an Agreement. Any such election under this paragraph (1.8)

 

 

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1    shall be effective unless and until such startup taxpayer
2    has any Illinois income tax liability. This election under
3    this paragraph (1.8) shall automatically terminate when
4    the startup taxpayer has any Illinois income tax liability
5    at the end of any taxable year during the term of the
6    Agreement. Thereafter, the startup taxpayer may receive a
7    Credit, taking into account any benefits previously
8    enjoyed or received by way of the election under this
9    paragraph (1.8), so long as the startup taxpayer remains
10    in compliance with the terms and conditions of the
11    Agreement.
12        (2) An election under this subsection shall allow the
13    credit to be taken against payments otherwise due under
14    Section 704A of the Illinois Income Tax Act during the
15    first calendar year beginning after the end of the taxable
16    year in which the credit is awarded under this Act.
17        (3) The election shall be made in the form and manner
18    required by the Illinois Department of Revenue and, once
19    made, shall be irrevocable.
20        (4) If a Taxpayer who meets the requirements of
21    subparagraph (A) of paragraph (1) of this subsection (f)
22    elects to claim the Credit against its withholdings as
23    provided in this subsection (f), then, on and after the
24    date of the election, the terms of the Agreement between
25    the Taxpayer and the Department may not be further amended
26    during the term of the Agreement.

 

 

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1    (g) A pass-through entity that has been awarded a credit
2under this Act, its shareholders, or its partners may treat
3some or all of the credit awarded pursuant to this Act as a tax
4payment for purposes of the Illinois Income Tax Act. The term
5"tax payment" means a payment as described in Article 6 or
6Article 8 of the Illinois Income Tax Act or a composite payment
7made by a pass-through entity on behalf of any of its
8shareholders or partners to satisfy such shareholders' or
9partners' taxes imposed pursuant to subsections (a) and (b) of
10Section 201 of the Illinois Income Tax Act. In no event shall
11the amount of the award credited pursuant to this Act exceed
12the Illinois income tax liability of the pass-through entity
13or its shareholders or partners for the taxable year.
14(Source: P.A. 100-511, eff. 9-18-17.)
 
15    (35 ILCS 10/5-20)
16    Sec. 5-20. Application for a project to create and retain
17new jobs.
18    (a) Any Taxpayer proposing a project located or planned to
19be located in Illinois may request consideration for
20designation of its project, by formal written letter of
21request or by formal application to the Department, in which
22the Applicant states its intent to make at least a specified
23level of investment and intends to hire or retain a specified
24number of full-time employees at a designated location in
25Illinois. As circumstances require, the Department may require

 

 

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1a formal application from an Applicant and a formal letter of
2request for assistance.
3    (b) In order to qualify for Credits under this Act, an
4Applicant's project must:
5        (1) if the Applicant has more than 100 employees,
6    involve an investment of at least $2,500,000 in capital
7    improvements to be placed in service within the State as a
8    direct result of the project; if the Applicant has 100 or
9    fewer employees, then there is no capital investment
10    requirement;
11        (1.5) if the Applicant has more than 100 employees,
12    employ a number of new employees in the State equal to the
13    lesser of (A) 10% of the number of full-time employees
14    employed by the applicant world-wide on the date the
15    application is filed with the Department or (B) 50 New
16    Employees; and, if the Applicant has 100 or fewer
17    employees, employ a number of new employees in the State
18    equal to the lesser of (A) 5% of the number of full-time
19    employees employed by the applicant world-wide on the date
20    the application is filed with the Department or (B) 50 New
21    Employees;
22        (1.6) if the Applicant is a startup taxpayer, the
23    employees employed by Related Members shall not be
24    attributed to the Applicant for purposes of determining
25    the capital investment or job creation requirements under
26    this subsection (b);

 

 

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1        (2) (blank);
2        (3) (blank); and
3        (4) include an annual sexual harassment policy report
4    as provided under Section 5-58.
5    (c) After receipt of an application, the Department may
6enter into an Agreement with the Applicant if the application
7is accepted in accordance with Section 5-25.
8(Source: P.A. 100-511, eff. 9-18-17; 100-698, eff. 1-1-19;
9101-81, eff. 7-12-19.)
 
10    (35 ILCS 10/5-77)
11    Sec. 5-77. Sunset of new Agreements. The Department shall
12not enter into any new Agreements under the provisions of
13Section 5-50 of this Act after June 30, 2027 June 30, 2022.
14(Source: P.A. 99-925, eff. 1-20-17; 100-511, eff. 9-18-17.)
 
15    Section 5-10. The River Edge Redevelopment Zone Act is
16amended by changing Section 10-3 as follows:
 
17    (65 ILCS 115/10-3)
18    Sec. 10-3. Definitions. As used in this Act:
19    "Department" means the Department of Commerce and Economic
20Opportunity.
21    "River Edge Redevelopment Zone" means an area of the State
22certified by the Department as a River Edge Redevelopment Zone
23pursuant to this Act.

 

 

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1    "Designated zone organization" means an association or
2entity: (1) the members of which are substantially all
3residents of the River Edge Redevelopment Zone or of the
4municipality in which the River Edge Redevelopment Zone is
5located; (2) the board of directors of which is elected by the
6members of the organization; (3) that satisfies the criteria
7set forth in Section 501(c) (3) or 501(c) (4) of the Internal
8Revenue Code; and (4) that exists primarily for the purpose of
9performing within the zone, for the benefit of the residents
10and businesses thereof, any of the functions set forth in
11Section 8 of this Act.
12    "Incremental income tax" means the total amount withheld
13during the taxable year from the compensation of River Edge
14Construction Jobs Employees.
15    "Agency" means: each officer, board, commission, and
16agency created by the Constitution, in the executive branch of
17State government, other than the State Board of Elections;
18each officer, department, board, commission, agency,
19institution, authority, university, and body politic and
20corporate of the State; each administrative unit or corporate
21outgrowth of the State government that is created by or
22pursuant to statute, other than units of local government and
23their officers, school districts, and boards of election
24commissioners; and each administrative unit or corporate
25outgrowth of the above and as may be created by executive order
26of the Governor. No entity is an "agency" for the purposes of

 

 

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1this Act unless the entity is authorized by law to make rules
2or regulations.
3    "River Edge construction jobs credit" means an amount
4equal to 50% of the incremental income tax attributable to
5River Edge construction employees employed on a River Edge
6construction jobs project. However, the amount may equal 75%
7of the incremental income tax attributable to River Edge
8construction employees employed on a River Edge construction
9jobs project located in an underserved area. The total
10aggregate amount of credits awarded under the Blue Collar Jobs
11Act (Article 20 of this amendatory Act of the 101st General
12Assembly) shall not exceed $20,000,000 in any State fiscal
13year.
14    "River Edge construction jobs employee" means a laborer or
15worker who is employed by an Illinois contractor or
16subcontractor in the actual construction work on the site of a
17River Edge construction jobs project.
18    "River Edge construction jobs project" means building a
19structure or building, or making improvements of any kind to
20real property, in a River Edge Redevelopment Zone that is
21built or improved in the course of completing a qualified
22rehabilitation plan. "River Edge construction jobs project"
23does not include the routine operation, routine repair, or
24routine maintenance of existing structures, buildings, or real
25property.
26    "Rule" means each agency statement of general

 

 

10200SB0157ham002- 22 -LRB102 10128 HLH 39050 a

1applicability that implements, applies, interprets, or
2prescribes law or policy, but does not include (i) statements
3concerning only the internal management of an agency and not
4affecting private rights or procedures available to persons or
5entities outside the agency, (ii) intra-agency memoranda, or
6(iii) the prescription of standardized forms.
7    Until July 1, 2022, "underserved "Underserved area" means
8a geographic area that meets one or more of the following
9conditions:
10        (1) the area has a poverty rate of at least 20%
11    according to the latest federal decennial census;
12        (2) 75% or more of the children in the area
13    participate in the federal free lunch program according to
14    reported statistics from the State Board of Education;
15        (3) at least 20% of the households in the area receive
16    assistance under the Supplemental Nutrition Assistance
17    Program (SNAP); or
18        (4) the area has an average unemployment rate, as
19    determined by the Illinois Department of Employment
20    Security, that is more than 120% of the national
21    unemployment average, as determined by the U.S. Department
22    of Labor, for a period of at least 2 consecutive calendar
23    years preceding the date of the application.
24    Beginning July 1, 2022, "Underserved area" means a
25geographic area that meets one or more of the following
26conditions:

 

 

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1        (1) the area has a poverty rate of at least 20%
2    according to the latest American Community Survey;
3        (2) 35% or more of the families with children in the
4    area are living below 130% of the poverty line, according
5    to the latest American Community Survey;
6        (3) at least 20% of the households in the area receive
7    assistance under the Supplemental Nutrition Assistance
8    Program (SNAP); or
9        (4) the area has an average unemployment rate, as
10    determined by the Illinois Department of Employment
11    Security, that is more than 120% of the national
12    unemployment average, as determined by the U.S. Department
13    of Labor, for a period of at least 2 consecutive calendar
14    years preceding the date of the application.
15(Source: P.A. 101-9, eff. 6-5-19.)
 
16
ARTICLE 10. FILM PRODUCTION TAX CREDIT

 
17    Section 10-5. The Illinois Income Tax Act is amended by
18changing Section 213 as follows:
 
19    (35 ILCS 5/213)
20    Sec. 213. Film production services credit. For tax years
21beginning on or after January 1, 2004, a taxpayer who has been
22awarded a tax credit under the Film Production Services Tax
23Credit Act or under the Film Production Services Tax Credit

 

 

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1Act of 2008 is entitled to a credit against the taxes imposed
2under subsections (a) and (b) of Section 201 of this Act in an
3amount determined by the Department of Commerce and Economic
4Opportunity under those Acts. If the taxpayer is a partnership
5or Subchapter S corporation, the credit is allowed to the
6partners or shareholders in accordance with the determination
7of income and distributive share of income under Sections 702
8and 704 and Subchapter S of the Internal Revenue Code.
9    A transfer of this credit may be made by the taxpayer
10earning the credit within one year after the credit is awarded
11in accordance with rules adopted by the Department of Commerce
12and Economic Opportunity. Beginning July 1, 2023, if a credit
13is transferred under this Section by the taxpayer, then the
14transferor taxpayer shall pay to the Department of Commerce
15and Economic Opportunity, upon notification of a transfer, a
16fee equal to 2.5% of the transferred credit amount eligible
17for nonresident wages, as described in Section 10 of the Film
18Production Services Tax Credit Act of 2008, and an additional
19fee of 0.25% of the total amount of the transferred credit that
20is not calculated on nonresident wages, which shall be
21deposited into the Illinois Production Workforce Development
22Fund.
23    The Department, in cooperation with the Department of
24Commerce and Economic Opportunity, must prescribe rules to
25enforce and administer the provisions of this Section. This
26Section is exempt from the provisions of Section 250 of this

 

 

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1Act.
2    The credit may not be carried back. If the amount of the
3credit exceeds the tax liability for the year, the excess may
4be carried forward and applied to the tax liability of the 5
5taxable years following the excess credit year. The credit
6shall be applied to the earliest year for which there is a tax
7liability. If there are credits from more than one tax year
8that are available to offset a liability, the earlier credit
9shall be applied first. In no event shall a credit under this
10Section reduce the taxpayer's liability to less than zero.
11(Source: P.A. 94-171, eff. 7-11-05; 95-720, eff. 5-27-08.)
 
12    Section 10-10. The Film Production Services Tax Credit Act
13of 2008 is amended by changing Sections 10 and 42 and by adding
14Section 46 as follows:
 
15    (35 ILCS 16/10)
16    Sec. 10. Definitions. As used in this Act:
17    "Accredited production" means: (i) for productions
18commencing before May 1, 2006, a film, video, or television
19production that has been certified by the Department in which
20the aggregate Illinois labor expenditures included in the cost
21of the production, in the period that ends 12 months after the
22time principal filming or taping of the production began,
23exceed $100,000 for productions of 30 minutes or longer, or
24$50,000 for productions of less than 30 minutes; and (ii) for

 

 

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1productions commencing on or after May 1, 2006, a film, video,
2or television production that has been certified by the
3Department in which the Illinois production spending included
4in the cost of production in the period that ends 12 months
5after the time principal filming or taping of the production
6began exceeds $100,000 for productions of 30 minutes or longer
7or exceeds $50,000 for productions of less than 30 minutes.
8"Accredited production" does not include a production that:
9        (1) is news, current events, or public programming, or
10    a program that includes weather or market reports;
11        (2) is a talk show;
12        (3) is a production in respect of a game,
13    questionnaire, or contest;
14        (4) is a sports event or activity;
15        (5) is a gala presentation or awards show;
16        (6) is a finished production that solicits funds;
17        (7) is a production produced by a film production
18    company if records, as required by 18 U.S.C. 2257, are to
19    be maintained by that film production company with respect
20    to any performer portrayed in that single media or
21    multimedia program; or
22        (8) is a production produced primarily for industrial,
23    corporate, or institutional purposes.
24    "Accredited animated production" means an accredited
25production in which movement and characters' performances are
26created using a frame-by-frame technique and a significant

 

 

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1number of major characters are animated. Motion capture by
2itself is not an animation technique.
3    "Accredited production certificate" means a certificate
4issued by the Department certifying that the production is an
5accredited production that meets the guidelines of this Act.
6    "Applicant" means a taxpayer that is a film production
7company that is operating or has operated an accredited
8production located within the State of Illinois and that (i)
9owns the copyright in the accredited production throughout the
10Illinois production period or (ii) has contracted directly
11with the owner of the copyright in the accredited production
12or a person acting on behalf of the owner to provide services
13for the production, where the owner of the copyright is not an
14eligible production corporation.
15    "Credit" means:
16        (1) for an accredited production approved by the
17    Department on or before January 1, 2005 and commencing
18    before May 1, 2006, the amount equal to 25% of the Illinois
19    labor expenditure approved by the Department. The
20    applicant is deemed to have paid, on its balance due day
21    for the year, an amount equal to 25% of its qualified
22    Illinois labor expenditure for the tax year. For Illinois
23    labor expenditures generated by the employment of
24    residents of geographic areas of high poverty or high
25    unemployment, as determined by the Department, in an
26    accredited production commencing before May 1, 2006 and

 

 

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1    approved by the Department after January 1, 2005, the
2    applicant shall receive an enhanced credit of 10% in
3    addition to the 25% credit; and
4        (2) for an accredited production commencing on or
5    after May 1, 2006, the amount equal to:
6            (i) 20% of the Illinois production spending for
7        the taxable year; plus
8            (ii) 15% of the Illinois labor expenditures
9        generated by the employment of residents of geographic
10        areas of high poverty or high unemployment, as
11        determined by the Department; and
12        (3) for an accredited production commencing on or
13    after January 1, 2009, the amount equal to:
14            (i) 30% of the Illinois production spending for
15        the taxable year; plus
16            (ii) 15% of the Illinois labor expenditures
17        generated by the employment of residents of geographic
18        areas of high poverty or high unemployment, as
19        determined by the Department.
20    "Department" means the Department of Commerce and Economic
21Opportunity.
22    "Director" means the Director of Commerce and Economic
23Opportunity.
24    "Illinois labor expenditure" means salary or wages paid to
25employees of the applicant for services on the accredited
26production.

 

 

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1    To qualify as an Illinois labor expenditure, the
2expenditure must be:
3        (1) Reasonable in the circumstances.
4        (2) Included in the federal income tax basis of the
5    property.
6        (3) Incurred by the applicant for services on or after
7    January 1, 2004.
8        (4) Incurred for the production stages of the
9    accredited production, from the final script stage to the
10    end of the post-production stage.
11        (5) Limited to the first $25,000 of wages paid or
12    incurred to each employee of a production commencing
13    before May 1, 2006 and the first $100,000 of wages paid or
14    incurred to each employee of a production commencing on or
15    after May 1, 2006 and prior to July 1, 2022. For
16    productions commencing on or after July 1, 2022, limited
17    to the first $500,000 of wages paid or incurred to each
18    nonresident or resident employee of a production company
19    or loan out company that provides in-State services to a
20    production, whether those wages are paid or incurred by
21    the production company, loan out company, or both, subject
22    to withholding payments provided for in Article 7 of the
23    Illinois Income Tax Act. For purposes of calculating
24    Illinois labor expenditures for a television series, the
25    nonresident wage limitations provided under this
26    subparagraph are applied to the entire season.

 

 

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1        (6) For a production commencing before May 1, 2006,
2    exclusive of the salary or wages paid to or incurred for
3    the 2 highest paid employees of the production.
4        (7) Directly attributable to the accredited
5    production.
6        (8) (Blank).
7        (9) Prior to July 1, 2022, paid Paid to persons
8    resident in Illinois at the time the payments were made.
9    For a production commencing on or after July 1, 2022, paid
10    to persons resident in Illinois and nonresidents at the
11    time the payments were made. For purposes of this
12    subparagraph, only wages paid to nonresidents working in
13    the following positions shall be considered Illinois labor
14    expenditures: Writer, Director, Director of Photography,
15    Production Designer, Costume Designer, Production
16    Accountant, VFX Supervisor, Editor, Composer, and Actor,
17    subject to the limitations set forth under this
18    subparagraph. For an accredited Illinois production
19    spending of $25,000,000 or less, no more than 2
20    nonresident actors' wages shall qualify as an Illinois
21    labor expenditure. For an accredited production with
22    Illinois production spending of more than $25,000,000, no
23    more than 4 nonresident actor's wages shall qualify as
24    Illinois labor expenditures.
25        (10) Paid for services rendered in Illinois.
26    "Illinois production spending" means the expenses incurred

 

 

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1by the applicant for an accredited production, including,
2without limitation, all of the following:
3        (1) expenses to purchase, from vendors within
4    Illinois, tangible personal property that is used in the
5    accredited production;
6        (2) expenses to acquire services, from vendors in
7    Illinois, for film production, editing, or processing; and
8        (3) for a production commencing before July 1, 2022,
9    the compensation, not to exceed $100,000 for any one
10    employee, for contractual or salaried employees who are
11    Illinois residents performing services with respect to the
12    accredited production. For a production commencing on or
13    after July 1, 2022, the compensation, not to exceed
14    $500,000 for any one employee, for contractual or salaried
15    employees who are Illinois residents or nonresident
16    employees, subject to the limitations set forth under
17    Section 10 of this Act.
18    "Loan out company" means a personal service corporation or
19other entity that is under contract with the taxpayer to
20provide specified individual personnel, such as artists, crew,
21actors, producers, or directors for the performance of
22services used directly in a production. "Loan out company"
23does not include entities contracted with by the taxpayer to
24provide goods or ancillary contractor services such as
25catering, construction, trailers, equipment, or
26transportation.

 

 

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1    "Qualified production facility" means stage facilities in
2the State in which television shows and films are or are
3intended to be regularly produced and that contain at least
4one sound stage of at least 15,000 square feet.
5    Rulemaking authority to implement Public Act 95-1006, if
6any, is conditioned on the rules being adopted in accordance
7with all provisions of the Illinois Administrative Procedure
8Act and all rules and procedures of the Joint Committee on
9Administrative Rules; any purported rule not so adopted, for
10whatever reason, is unauthorized.
11(Source: P.A. 102-558, eff. 8-20-21.)
 
12    (35 ILCS 16/42)
13    Sec. 42. Sunset of credits. The application of credits
14awarded pursuant to this Act shall be limited by a reasonable
15and appropriate sunset date. A taxpayer shall not be awarded
16any new credits entitled to take a credit awarded pursuant to
17this Act for tax years beginning on or after January 1, 2027.
18(Source: P.A. 101-178, eff. 8-1-19.)
 
19    (35 ILCS 16/46 new)
20    Sec. 46. Illinois Production Workforce Development Fund.
21    (a) The Illinois Production Workforce Development Fund is
22created as a special fund in the State Treasury. Beginning
23July 1, 2022, amounts paid to the Department of Commerce and
24Economic Opportunity pursuant to Section 213 of the Illinois

 

 

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1Income Tax Act shall be deposited into the Fund. The Fund shall
2be used exclusively to provide grants to community-based
3organizations, labor organizations, private and public
4universities, community colleges, and other organizations and
5institutions that may be deemed appropriate by the Department
6to administer workforce training programs that support efforts
7to recruit, hire, promote, retain, develop, and train a
8diverse and inclusive workforce in the film industry.
9    (b) Pursuant to Section 213 of the Illinois Income Tax
10Act, the Fund shall receive deposits in amounts not to exceed
110.25% of the amount of each credit certificate issued that is
12not calculated on out-of-state wages and transferred or
13claimed on an Illinois tax return in the quarter such credit
14was transferred or claimed. In addition, such amount shall
15also include 2.5% of the credit amount calculated on wages
16paid to nonresidents that is transferred or claimed on an
17Illinois tax return in the quarter such credit was transferred
18or claimed.
19    (c) At the request of the Department, the State
20Comptroller and the State Treasurer may advance amounts to the
21Fund on an annual basis not to exceed $1,000,000 in any fiscal
22year. The fund from which the moneys are advanced shall be
23reimbursed in the same fiscal year for any such advance
24payments as described in this Section. The method of
25reimbursement shall be set forth in rules.
26    (d) Of the appropriated funds in a given fiscal year, 50%

 

 

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1of the appropriated funds shall be reserved for organizations
2that meet one of the following criteria. The organization is:
3(1) a minority-owned business, as defined by the Business
4Enterprise for Minorities, Women, and Persons with
5Disabilities Act; (2) located in an underserved area, as
6defined by the Economic Development for a Growing Economy Tax
7Credit Act; or (3) on an annual basis, training a cohort of
8program participants where at least 50% of the program
9participants are either a minority person, as defined by the
10Business Enterprise for Minorities, Women, and Persons with
11Disabilities Act, or reside in an underserved area, as defined
12by the Economic Development for a Growing Economy Tax Credit
13Act.
14    (e) The Illinois Production Workforce Development Fund
15shall be administered by the Department. The Department may
16adopt rules necessary to administer the provisions of this
17Section.
18    (f) Notwithstanding any other law to the contrary, the
19Illinois Production Workforce Development Fund is not subject
20to sweeps, administrative charge-backs, or any other fiscal or
21budgetary maneuver that would in any way transfer any amounts
22from the Illinois Production Workforce Development Fund.
23    (g) By June 30 of each fiscal year, the Department must
24submit to the General Assembly a report that includes the
25following information: (1) an identification of the
26organizations and institutions that received funding to

 

 

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1administer workforce training programs during the fiscal year;
2(2) the number of total persons trained and the number of
3persons trained per workforce training program in the fiscal
4year; and (3) in the aggregate, per organization, the number
5of persons identified as a minority person or that reside in an
6underserved area that received training in the fiscal year.
 
7    Section 10-90. The State Finance Act is amended by adding
8Section 5.970 as follows:
 
9    (30 ILCS 105/5.970 new)
10    Sec. 5.970. The Illinois Production Workforce Development
11Fund.
 
12
ARTICLE 15. LIVE THEATER TAX CREDIT

 
13    Section 15-5. The Live Theater Production Tax Credit Act
14is amended by changing Section 10-20 as follows:
 
15    (35 ILCS 17/10-20)
16    Sec. 10-20. Tax credit award. Subject to the conditions
17set forth in this Act, an applicant is entitled to a tax credit
18award as approved by the Department for qualifying Illinois
19labor expenditures and Illinois production spending for each
20tax year in which the applicant is awarded an accredited
21theater production certificate issued by the Department. The

 

 

10200SB0157ham002- 36 -LRB102 10128 HLH 39050 a

1amount of tax credits awarded pursuant to this Act shall not
2exceed $2,000,000 for State fiscal years ending on or before
3June 30, 2022 and ending on or after June 30, 2024. Due to the
4impact of the COVID-19 pandemic, for the State fiscal year
5ending on June 30, 2023, the amount of tax credits awarded
6pursuant to this Act shall not exceed $4,000,000. For the
7State fiscal year ending on June 30, 2023, credits awarded
8under this Act in excess of $2,000,000 must be awarded to
9applicants with Illinois production spending of not less than
10$2,500,000, as shown on the applicant's application for the
11credit. in any fiscal year. Credits shall be awarded on a
12first-come, first-served basis. Notwithstanding the foregoing,
13if the amount of credits applied for in any fiscal year exceeds
14the amount authorized to be awarded under this Section, the
15excess credit amount shall be awarded in the next fiscal year
16in which credits remain available for award and shall be
17treated as having been applied for on the first day of that
18fiscal year.
19(Source: P.A. 97-636, eff. 6-1-12.)
 
20
ARTICLE 20. BIODIESEL

 
21    Section 20-5. The Use Tax Act is amended by changing
22Sections 3-10 and 3-41 and by adding Sections 3-5.1 and 3-42.5
23as follows:
 

 

 

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1    (35 ILCS 105/3-5.1 new)
2    Sec. 3-5.1. Biodiesel, renewable diesel, and biodiesel
3blends.
4    (a) On and after January 1, 2024 and on or before December
531, 2030, the taxes imposed by this Act, the Service Use Tax
6Act, the Service Occupation Tax Act, or the Retailers'
7Occupation Tax Act apply to 100% of the proceeds of sales of
8(i) biodiesel blends with no less than 1% and no more than 10%
9of biodiesel and (ii) any diesel fuel containing no less than
101% and no more than 10% of renewable diesel.
11    (b) From January 1, 2024 through March 31, 2024, the taxes
12imposed by this Act, the Service Use Tax Act, the Service
13Occupation Tax Act, or the Retailers' Occupation Tax Act do
14not apply to the proceeds of sales of any diesel fuel
15containing more than 10% biodiesel or renewable diesel.
16    (c) From April 1, 2024 through November 30, 2024, the
17taxes imposed by this Act, the Service Use Tax Act, the Service
18Occupation Tax Act, or the Retailers' Occupation Tax Act do
19not apply to the proceeds of sales of any diesel fuel
20containing more than 13% biodiesel or renewable diesel.
21    (d) From December 1, 2024 through March 31, 2025, the
22taxes imposed by this Act, the Service Use Tax Act, the Service
23Occupation Tax Act, or the Retailers' Occupation Tax Act do
24not apply to the proceeds of sales of any diesel fuel
25containing more than 10% biodiesel or renewable diesel.
26    (e) From April 1, 2025 through November 30, 2025, the

 

 

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1taxes imposed by this Act, the Service Use Tax Act, the Service
2Occupation Tax Act, or the Retailers' Occupation Tax Act do
3not apply to the proceeds of sales of any diesel fuel
4containing more than 16% biodiesel or renewable diesel.
5    (f) From December 1, 2025 through March 31, 2026, the
6taxes imposed by this Act, the Service Use Tax Act, the Service
7Occupation Tax Act, or the Retailers' Occupation Tax Act do
8not apply to the proceeds of sales of any diesel fuel
9containing more than 10% biodiesel or renewable diesel.
10    (g) On and after April 1, 2026 and on or before November
1130, 2030, the taxes imposed by this Act, the Service Use Tax
12Act, the Service Occupation Tax Act, or the Retailers'
13Occupation Tax Act do not apply to the proceeds of sales of any
14diesel fuel containing more than 19% biodiesel or renewable
15diesel; except that, from December 1 of calendar years 2026,
162027, 2028, and 2029 through March 31 of the following
17calendar year, and from December 1, 2030 through December 31,
182030, the taxes imposed by this Act, the Service Use Tax Act,
19the Service Occupation Tax Act, or the Retailers' Occupation
20Tax Act do not apply to the proceeds of sales of any diesel
21fuel containing more than 10% biodiesel or renewable diesel.
22    (h) This Section is exempt from the provisions of Section
233-90 of this Act, Section 3-75 of the Service Use Tax Act,
24Section 3-55 of the Service Occupation Tax Act, and Section
252-70 of the Retailers' Occupation Tax Act.
 

 

 

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1    (35 ILCS 105/3-10)
2    Sec. 3-10. Rate of tax. Unless otherwise provided in this
3Section, the tax imposed by this Act is at the rate of 6.25% of
4either the selling price or the fair market value, if any, of
5the tangible personal property. In all cases where property
6functionally used or consumed is the same as the property that
7was purchased at retail, then the tax is imposed on the selling
8price of the property. In all cases where property
9functionally used or consumed is a by-product or waste product
10that has been refined, manufactured, or produced from property
11purchased at retail, then the tax is imposed on the lower of
12the fair market value, if any, of the specific property so used
13in this State or on the selling price of the property purchased
14at retail. For purposes of this Section "fair market value"
15means the price at which property would change hands between a
16willing buyer and a willing seller, neither being under any
17compulsion to buy or sell and both having reasonable knowledge
18of the relevant facts. The fair market value shall be
19established by Illinois sales by the taxpayer of the same
20property as that functionally used or consumed, or if there
21are no such sales by the taxpayer, then comparable sales or
22purchases of property of like kind and character in Illinois.
23    Beginning on July 1, 2000 and through December 31, 2000,
24with respect to motor fuel, as defined in Section 1.1 of the
25Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
26the Use Tax Act, the tax is imposed at the rate of 1.25%.

 

 

10200SB0157ham002- 40 -LRB102 10128 HLH 39050 a

1    Beginning on August 6, 2010 through August 15, 2010, with
2respect to sales tax holiday items as defined in Section 3-6 of
3this Act, the tax is imposed at the rate of 1.25%.
4    With respect to gasohol, the tax imposed by this Act
5applies to (i) 70% of the proceeds of sales made on or after
6January 1, 1990, and before July 1, 2003, (ii) 80% of the
7proceeds of sales made on or after July 1, 2003 and on or
8before July 1, 2017, and (iii) 100% of the proceeds of sales
9made thereafter. If, at any time, however, the tax under this
10Act on sales of gasohol is imposed at the rate of 1.25%, then
11the tax imposed by this Act applies to 100% of the proceeds of
12sales of gasohol made during that time.
13    With respect to majority blended ethanol fuel, the tax
14imposed by this Act does not apply to the proceeds of sales
15made on or after July 1, 2003 and on or before December 31,
162023 but applies to 100% of the proceeds of sales made
17thereafter.
18    With respect to biodiesel blends with no less than 1% and
19no more than 10% biodiesel, the tax imposed by this Act applies
20to (i) 80% of the proceeds of sales made on or after July 1,
212003 and on or before December 31, 2018 and (ii) 100% of the
22proceeds of sales made after December 31, 2018 and before
23January 1, 2024. On and after January 1, 2024 and on or before
24December 31, 2030, the taxation of biodiesel, renewable
25diesel, and biodiesel blends shall be as provided in Section
263-5.1 thereafter. If, at any time, however, the tax under this

 

 

10200SB0157ham002- 41 -LRB102 10128 HLH 39050 a

1Act on sales of biodiesel blends with no less than 1% and no
2more than 10% biodiesel is imposed at the rate of 1.25%, then
3the tax imposed by this Act applies to 100% of the proceeds of
4sales of biodiesel blends with no less than 1% and no more than
510% biodiesel made during that time.
6    With respect to 100% biodiesel and biodiesel blends with
7more than 10% but no more than 99% biodiesel, the tax imposed
8by this Act does not apply to the proceeds of sales made on or
9after July 1, 2003 and on or before December 31, 2023 but
10applies to 100% of the proceeds of sales made thereafter. On
11and after January 1, 2024 and on or before December 31, 2030,
12the taxation of biodiesel, renewable diesel, and biodiesel
13blends shall be as provided in Section 3-5.1.
14    With respect to food for human consumption that is to be
15consumed off the premises where it is sold (other than
16alcoholic beverages, food consisting of or infused with adult
17use cannabis, soft drinks, and food that has been prepared for
18immediate consumption) and prescription and nonprescription
19medicines, drugs, medical appliances, products classified as
20Class III medical devices by the United States Food and Drug
21Administration that are used for cancer treatment pursuant to
22a prescription, as well as any accessories and components
23related to those devices, modifications to a motor vehicle for
24the purpose of rendering it usable by a person with a
25disability, and insulin, blood sugar testing materials,
26syringes, and needles used by human diabetics, the tax is

 

 

10200SB0157ham002- 42 -LRB102 10128 HLH 39050 a

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

 

 

10200SB0157ham002- 43 -LRB102 10128 HLH 39050 a

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

 

 

10200SB0157ham002- 44 -LRB102 10128 HLH 39050 a

1        (A) A "Drug Facts" panel; or
2        (B) A statement of the "active ingredient(s)" with a
3    list of those ingredients contained in the compound,
4    substance or preparation.
5    Beginning on the effective date of this amendatory Act of
6the 98th General Assembly, "prescription and nonprescription
7medicines and drugs" includes medical cannabis purchased from
8a registered dispensing organization under the Compassionate
9Use of Medical Cannabis Program Act.
10    As used in this Section, "adult use cannabis" means
11cannabis subject to tax under the Cannabis Cultivation
12Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
13and does not include cannabis subject to tax under the
14Compassionate Use of Medical Cannabis Program Act.
15    If the property that is purchased at retail from a
16retailer is acquired outside Illinois and used outside
17Illinois before being brought to Illinois for use here and is
18taxable under this Act, the "selling price" on which the tax is
19computed shall be reduced by an amount that represents a
20reasonable allowance for depreciation for the period of prior
21out-of-state use.
22(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
23102-4, eff. 4-27-21.)
 
24    (35 ILCS 105/3-41)
25    Sec. 3-41. Biodiesel. "Biodiesel" means a renewable diesel

 

 

10200SB0157ham002- 45 -LRB102 10128 HLH 39050 a

1fuel that is not a hydrocarbon fuel and that is derived from
2biomass that is intended for use in diesel engines.
3(Source: P.A. 93-17, eff. 6-11-03.)
 
4    (35 ILCS 105/3-42.5 new)
5    Sec. 3-42.5. Renewable diesel. "Renewable diesel" means a
6diesel fuel that is a hydrocarbon fuel derived from biomass
7meeting the requirements of the latest version of ASTM
8standards D975 or D396. Fuels that have been co-processed are
9not considered renewable diesel.
 
10    Section 20-10. The Service Use Tax Act is amended by
11changing Section 3-10 as follows:
 
12    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
13    Sec. 3-10. Rate of tax. Unless otherwise provided in this
14Section, the tax imposed by this Act is at the rate of 6.25% of
15the selling price of tangible personal property transferred as
16an incident to the sale of service, but, for the purpose of
17computing this tax, in no event shall the selling price be less
18than the cost price of the property to the serviceman.
19    Beginning on July 1, 2000 and through December 31, 2000,
20with respect to motor fuel, as defined in Section 1.1 of the
21Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
22the Use Tax Act, the tax is imposed at the rate of 1.25%.
23    With respect to gasohol, as defined in the Use Tax Act, the

 

 

10200SB0157ham002- 46 -LRB102 10128 HLH 39050 a

1tax imposed by this Act applies to (i) 70% of the selling price
2of property transferred as an incident to the sale of service
3on or after January 1, 1990, and before July 1, 2003, (ii) 80%
4of the selling price of property transferred as an incident to
5the sale of service on or after July 1, 2003 and on or before
6July 1, 2017, and (iii) 100% of the selling price thereafter.
7If, at any time, however, the tax under this Act on sales of
8gasohol, as defined in the Use Tax Act, is imposed at the rate
9of 1.25%, then the tax imposed by this Act applies to 100% of
10the proceeds of sales of gasohol made during that time.
11    With respect to majority blended ethanol fuel, as defined
12in the Use Tax Act, the tax imposed by this Act does not apply
13to the selling price of property transferred as an incident to
14the sale of service on or after July 1, 2003 and on or before
15December 31, 2023 but applies to 100% of the selling price
16thereafter.
17    With respect to biodiesel blends, as defined in the Use
18Tax Act, with no less than 1% and no more than 10% biodiesel,
19the tax imposed by this Act applies to (i) 80% of the selling
20price of property transferred as an incident to the sale of
21service on or after July 1, 2003 and on or before December 31,
222018 and (ii) 100% of the proceeds of the selling price after
23December 31, 2018 and before January 1, 2024. On and after
24January 1, 2024 and on or before December 31, 2030, the
25taxation of biodiesel, renewable diesel, and biodiesel blends
26shall be as provided in Section 3-5.1 of the Use Tax

 

 

10200SB0157ham002- 47 -LRB102 10128 HLH 39050 a

1Act thereafter. If, at any time, however, the tax under this
2Act on sales of biodiesel blends, as defined in the Use Tax
3Act, with no less than 1% and no more than 10% biodiesel is
4imposed at the rate of 1.25%, then the tax imposed by this Act
5applies to 100% of the proceeds of sales of biodiesel blends
6with no less than 1% and no more than 10% biodiesel made during
7that time.
8    With respect to 100% biodiesel, as defined in the Use Tax
9Act, and biodiesel blends, as defined in the Use Tax Act, with
10more than 10% but no more than 99% biodiesel, the tax imposed
11by this Act does not apply to the proceeds of the selling price
12of property transferred as an incident to the sale of service
13on or after July 1, 2003 and on or before December 31, 2023 but
14applies to 100% of the selling price thereafter. On and after
15January 1, 2024 and on or before December 31, 2030, the
16taxation of biodiesel, renewable diesel, and biodiesel blends
17shall be as provided in Section 3-5.1 of the Use Tax Act.
18    At the election of any registered serviceman made for each
19fiscal year, sales of service in which the aggregate annual
20cost price of tangible personal property transferred as an
21incident to the sales of service is less than 35%, or 75% in
22the case of servicemen transferring prescription drugs or
23servicemen engaged in graphic arts production, of the
24aggregate annual total gross receipts from all sales of
25service, the tax imposed by this Act shall be based on the
26serviceman's cost price of the tangible personal property

 

 

10200SB0157ham002- 48 -LRB102 10128 HLH 39050 a

1transferred as an incident to the sale of those services.
2    The tax shall be imposed at the rate of 1% on food prepared
3for immediate consumption and transferred incident to a sale
4of service subject to this Act or the Service Occupation Tax
5Act by an entity licensed under the Hospital Licensing Act,
6the Nursing Home Care Act, the Assisted Living and Shared
7Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
8Specialized Mental Health Rehabilitation Act of 2013, or the
9Child Care Act of 1969, or an entity that holds a permit issued
10pursuant to the Life Care Facilities Act. The tax shall also be
11imposed at the rate of 1% on food for human consumption that is
12to be consumed off the premises where it is sold (other than
13alcoholic beverages, food consisting of or infused with adult
14use cannabis, soft drinks, and food that has been prepared for
15immediate consumption and is not otherwise included in this
16paragraph) and prescription and nonprescription medicines,
17drugs, medical appliances, products classified as Class III
18medical devices by the United States Food and Drug
19Administration that are used for cancer treatment pursuant to
20a prescription, as well as any accessories and components
21related to those devices, modifications to a motor vehicle for
22the purpose of rendering it usable by a person with a
23disability, and insulin, blood sugar testing materials,
24syringes, and needles used by human diabetics. For the
25purposes of this Section, until September 1, 2009: the term
26"soft drinks" means any complete, finished, ready-to-use,

 

 

10200SB0157ham002- 49 -LRB102 10128 HLH 39050 a

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

 

 

10200SB0157ham002- 50 -LRB102 10128 HLH 39050 a

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

 

 

10200SB0157ham002- 51 -LRB102 10128 HLH 39050 a

1    list of those ingredients contained in the compound,
2    substance or preparation.
3    Beginning on January 1, 2014 (the effective date of Public
4Act 98-122), "prescription and nonprescription medicines and
5drugs" includes medical cannabis purchased from a registered
6dispensing organization under the Compassionate Use of Medical
7Cannabis Program Act.
8    As used in this Section, "adult use cannabis" means
9cannabis subject to tax under the Cannabis Cultivation
10Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
11and does not include cannabis subject to tax under the
12Compassionate Use of Medical Cannabis Program Act.
13    If the property that is acquired from a serviceman is
14acquired outside Illinois and used outside Illinois before
15being brought to Illinois for use here and is taxable under
16this Act, the "selling price" on which the tax is computed
17shall be reduced by an amount that represents a reasonable
18allowance for depreciation for the period of prior
19out-of-state use.
20(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
21102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
22    Section 20-15. The Service Occupation Tax Act is amended
23by changing Section 3-10 as follows:
 
24    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)

 

 

10200SB0157ham002- 52 -LRB102 10128 HLH 39050 a

1    Sec. 3-10. Rate of tax. Unless otherwise provided in this
2Section, the tax imposed by this Act is at the rate of 6.25% of
3the "selling price", as defined in Section 2 of the Service Use
4Tax Act, of the tangible personal property. For the purpose of
5computing this tax, in no event shall the "selling price" be
6less than the cost price to the serviceman of the tangible
7personal property transferred. The selling price of each item
8of tangible personal property transferred as an incident of a
9sale of service may be shown as a distinct and separate item on
10the serviceman's billing to the service customer. If the
11selling price is not so shown, the selling price of the
12tangible personal property is deemed to be 50% of the
13serviceman's entire billing to the service customer. When,
14however, a serviceman contracts to design, develop, and
15produce special order machinery or equipment, the tax imposed
16by this Act shall be based on the serviceman's cost price of
17the tangible personal property transferred incident to the
18completion of the contract.
19    Beginning on July 1, 2000 and through December 31, 2000,
20with respect to motor fuel, as defined in Section 1.1 of the
21Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
22the Use Tax Act, the tax is imposed at the rate of 1.25%.
23    With respect to gasohol, as defined in the Use Tax Act, the
24tax imposed by this Act shall apply to (i) 70% of the cost
25price of property transferred as an incident to the sale of
26service on or after January 1, 1990, and before July 1, 2003,

 

 

10200SB0157ham002- 53 -LRB102 10128 HLH 39050 a

1(ii) 80% of the selling price of property transferred as an
2incident to the sale of service on or after July 1, 2003 and on
3or before July 1, 2017, and (iii) 100% of the cost price
4thereafter. If, at any time, however, the tax under this Act on
5sales of gasohol, as defined in the Use Tax Act, is imposed at
6the rate of 1.25%, then the tax imposed by this Act applies to
7100% of the proceeds of sales of gasohol made during that time.
8    With respect to majority blended ethanol fuel, as defined
9in the Use Tax Act, the tax imposed by this Act does not apply
10to the selling price of property transferred as an incident to
11the sale of service on or after July 1, 2003 and on or before
12December 31, 2023 but applies to 100% of the selling price
13thereafter.
14    With respect to biodiesel blends, as defined in the Use
15Tax Act, with no less than 1% and no more than 10% biodiesel,
16the tax imposed by this Act applies to (i) 80% of the selling
17price of property transferred as an incident to the sale of
18service on or after July 1, 2003 and on or before December 31,
192018 and (ii) 100% of the proceeds of the selling price after
20December 31, 2018 and before January 1, 2024. On and after
21January 1, 2024 and on or before December 31, 2030, the
22taxation of biodiesel, renewable diesel, and biodiesel blends
23shall be as provided in Section 3-5.1 of the Use Tax
24Act thereafter. If, at any time, however, the tax under this
25Act on sales of biodiesel blends, as defined in the Use Tax
26Act, with no less than 1% and no more than 10% biodiesel is

 

 

10200SB0157ham002- 54 -LRB102 10128 HLH 39050 a

1imposed at the rate of 1.25%, then the tax imposed by this Act
2applies to 100% of the proceeds of sales of biodiesel blends
3with no less than 1% and no more than 10% biodiesel made during
4that time.
5    With respect to 100% biodiesel, as defined in the Use Tax
6Act, and biodiesel blends, as defined in the Use Tax Act, with
7more than 10% but no more than 99% biodiesel material, the tax
8imposed by this Act does not apply to the proceeds of the
9selling price of property transferred as an incident to the
10sale of service on or after July 1, 2003 and on or before
11December 31, 2023 but applies to 100% of the selling price
12thereafter. On and after January 1, 2024 and on or before
13December 31, 2030, the taxation of biodiesel, renewable
14diesel, and biodiesel blends shall be as provided in Section
153-5.1 of the Use Tax Act.
16    At the election of any registered serviceman made for each
17fiscal year, sales of service in which the aggregate annual
18cost price of tangible personal property transferred as an
19incident to the sales of service is less than 35%, or 75% in
20the case of servicemen transferring prescription drugs or
21servicemen engaged in graphic arts production, of the
22aggregate annual total gross receipts from all sales of
23service, the tax imposed by this Act shall be based on the
24serviceman's cost price of the tangible personal property
25transferred incident to the sale of those services.
26    The tax shall be imposed at the rate of 1% on food prepared

 

 

10200SB0157ham002- 55 -LRB102 10128 HLH 39050 a

1for immediate consumption and transferred incident to a sale
2of service subject to this Act or the Service Occupation Tax
3Act by an entity licensed under the Hospital Licensing Act,
4the Nursing Home Care Act, the Assisted Living and Shared
5Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
6Specialized Mental Health Rehabilitation Act of 2013, or the
7Child Care Act of 1969, or an entity that holds a permit issued
8pursuant to the Life Care Facilities Act. The tax shall also be
9imposed at the rate of 1% on food for human consumption that is
10to be consumed off the premises where it is sold (other than
11alcoholic beverages, food consisting of or infused with adult
12use cannabis, soft drinks, and food that has been prepared for
13immediate consumption and is not otherwise included in this
14paragraph) and prescription and nonprescription medicines,
15drugs, medical appliances, products classified as Class III
16medical devices by the United States Food and Drug
17Administration that are used for cancer treatment pursuant to
18a prescription, as well as any accessories and components
19related to those devices, modifications to a motor vehicle for
20the purpose of rendering it usable by a person with a
21disability, and insulin, blood sugar testing materials,
22syringes, and needles used by human diabetics. For the
23purposes of this Section, until September 1, 2009: the term
24"soft drinks" means any complete, finished, ready-to-use,
25non-alcoholic drink, whether carbonated or not, including but
26not limited to soda water, cola, fruit juice, vegetable juice,

 

 

10200SB0157ham002- 56 -LRB102 10128 HLH 39050 a

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

 

 

10200SB0157ham002- 57 -LRB102 10128 HLH 39050 a

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

 

 

10200SB0157ham002- 58 -LRB102 10128 HLH 39050 a

1    Beginning on January 1, 2014 (the effective date of Public
2Act 98-122), "prescription and nonprescription medicines and
3drugs" includes medical cannabis purchased from a registered
4dispensing organization under the Compassionate Use of Medical
5Cannabis Program Act.
6    As used in this Section, "adult use cannabis" means
7cannabis subject to tax under the Cannabis Cultivation
8Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
9and does not include cannabis subject to tax under the
10Compassionate Use of Medical Cannabis Program Act.
11(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
12102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
13    Section 20-20. The Retailers' Occupation Tax Act is
14amended by changing Section 2-10 as follows:
 
15    (35 ILCS 120/2-10)
16    Sec. 2-10. Rate of tax. Unless otherwise provided in this
17Section, the tax imposed by this Act is at the rate of 6.25% of
18gross receipts from sales of tangible personal property made
19in the course of business.
20    Beginning on July 1, 2000 and through December 31, 2000,
21with respect to motor fuel, as defined in Section 1.1 of the
22Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
23the Use Tax Act, the tax is imposed at the rate of 1.25%.
24    Beginning on August 6, 2010 through August 15, 2010, with

 

 

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1respect to sales tax holiday items as defined in Section 2-8 of
2this Act, the tax is imposed at the rate of 1.25%.
3    Within 14 days after the effective date of this amendatory
4Act of the 91st General Assembly, each retailer of motor fuel
5and gasohol shall cause the following notice to be posted in a
6prominently visible place on each retail dispensing device
7that is used to dispense motor fuel or gasohol in the State of
8Illinois: "As of July 1, 2000, the State of Illinois has
9eliminated the State's share of sales tax on motor fuel and
10gasohol through December 31, 2000. The price on this pump
11should reflect the elimination of the tax." The notice shall
12be printed in bold print on a sign that is no smaller than 4
13inches by 8 inches. The sign shall be clearly visible to
14customers. Any retailer who fails to post or maintain a
15required sign through December 31, 2000 is guilty of a petty
16offense for which the fine shall be $500 per day per each
17retail premises where a violation occurs.
18    With respect to gasohol, as defined in the Use Tax Act, the
19tax imposed by this Act applies to (i) 70% of the proceeds of
20sales made on or after January 1, 1990, and before July 1,
212003, (ii) 80% of the proceeds of sales made on or after July
221, 2003 and on or before July 1, 2017, and (iii) 100% of the
23proceeds of sales made thereafter. If, at any time, however,
24the tax under this Act on sales of gasohol, as defined in the
25Use Tax Act, is imposed at the rate of 1.25%, then the tax
26imposed by this Act applies to 100% of the proceeds of sales of

 

 

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1gasohol made during that time.
2    With respect to majority blended ethanol fuel, as defined
3in the Use Tax Act, the tax imposed by this Act does not apply
4to the proceeds of sales made on or after July 1, 2003 and on
5or before December 31, 2023 but applies to 100% of the proceeds
6of sales made thereafter.
7    With respect to biodiesel blends, as defined in the Use
8Tax Act, with no less than 1% and no more than 10% biodiesel,
9the tax imposed by this Act applies to (i) 80% of the proceeds
10of sales made on or after July 1, 2003 and on or before
11December 31, 2018 and (ii) 100% of the proceeds of sales made
12after December 31, 2018 and before January 1, 2024. On and
13after January 1, 2024 and on or before December 31, 2030, the
14taxation of biodiesel, renewable diesel, and biodiesel blends
15shall be as provided in Section 3-5.1 of the Use Tax Act
16thereafter. If, at any time, however, the tax under this Act on
17sales of biodiesel blends, as defined in the Use Tax Act, with
18no less than 1% and no more than 10% biodiesel is imposed at
19the rate of 1.25%, then the tax imposed by this Act applies to
20100% of the proceeds of sales of biodiesel blends with no less
21than 1% and no more than 10% biodiesel made during that time.
22    With respect to 100% biodiesel, as defined in the Use Tax
23Act, and biodiesel blends, as defined in the Use Tax Act, with
24more than 10% but no more than 99% biodiesel, the tax imposed
25by this Act does not apply to the proceeds of sales made on or
26after July 1, 2003 and on or before December 31, 2023 but

 

 

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

 

 

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

 

 

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

 

 

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1Use of Medical Cannabis Program Act.
2    As used in this Section, "adult use cannabis" means
3cannabis subject to tax under the Cannabis Cultivation
4Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
5and does not include cannabis subject to tax under the
6Compassionate Use of Medical Cannabis Program Act.
7(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
8102-4, eff. 4-27-21.)
 
9    Section 20-25. The Motor Fuel Tax Law is amended by adding
10Section 3d as follows:
 
11    (35 ILCS 505/3d new)
12    Sec. 3d. Right to blend.
13    (a) A distributor who is properly licensed and permitted
14as a blender pursuant to this Act may blend petroleum-based
15diesel fuel with biodiesel and sell the blended or unblended
16product on any premises owned and operated by the distributor
17for the purpose of supporting or facilitating the retail sale
18of motor fuel.
19    (b) A refiner or supplier of petroleum-based diesel fuel
20or biodiesel shall not refuse to sell or transport to a
21distributor who is properly licensed and permitted as a
22blender pursuant to this Act any petroleum-based diesel fuel
23or biodiesel based on the distributor's or dealer's intent to
24use that product for blending.
 

 

 

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1
ARTICLE 25. HOSPITALS

 
2    Section 25-5. The Illinois Income Tax Act is amended by
3changing Section 223 as follows:
 
4    (35 ILCS 5/223)
5    Sec. 223. Hospital credit.
6    (a) For tax years ending on or after December 31, 2012 and
7ending on or before December 31, 2027 December 31, 2022, a
8taxpayer that is the owner of a hospital licensed under the
9Hospital Licensing Act, but not including an organization that
10is exempt from federal income taxes under the Internal Revenue
11Code, is entitled to a credit against the taxes imposed under
12subsections (a) and (b) of Section 201 of this Act in an amount
13equal to the lesser of the amount of real property taxes paid
14during the tax year on real property used for hospital
15purposes during the prior tax year or the cost of free or
16discounted services provided during the tax year pursuant to
17the hospital's charitable financial assistance policy,
18measured at cost.
19    (b) If the taxpayer is a partnership or Subchapter S
20corporation, the credit is allowed to the partners or
21shareholders in accordance with the determination of income
22and distributive share of income under Sections 702 and 704
23and Subchapter S of the Internal Revenue Code. A transfer of

 

 

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1this credit may be made by the taxpayer earning the credit
2within one year after the credit is earned in accordance with
3rules adopted by the Department. The Department shall
4prescribe rules to enforce and administer provisions of this
5Section. If the amount of the credit exceeds the tax liability
6for the year, then the excess credit may be carried forward and
7applied to the tax liability of the 5 taxable years following
8the excess credit year. The credit shall be applied to the
9earliest year for which there is a tax liability. If there are
10credits from more than one tax year that are available to
11offset a liability, the earlier credit shall be applied first.
12In no event shall a credit under this Section reduce the
13taxpayer's liability to less than zero.
14(Source: P.A. 100-587, eff. 6-4-18.)
 
15    Section 25-10. The Use Tax Act is amended by changing
16Section 3-8 as follows:
 
17    (35 ILCS 105/3-8)
18    Sec. 3-8. Hospital exemption.
19    (a) Tangible Until July 1, 2022, tangible personal
20property sold to or used by a hospital owner that owns one or
21more hospitals licensed under the Hospital Licensing Act or
22operated under the University of Illinois Hospital Act, or a
23hospital affiliate that is not already exempt under another
24provision of this Act and meets the criteria for an exemption

 

 

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1under this Section, is exempt from taxation under this Act.
2    (b) A hospital owner or hospital affiliate satisfies the
3conditions for an exemption under this Section if the value of
4qualified services or activities listed in subsection (c) of
5this Section for the hospital year equals or exceeds the
6relevant hospital entity's estimated property tax liability,
7without regard to any property tax exemption granted under
8Section 15-86 of the Property Tax Code, for the calendar year
9in which exemption or renewal of exemption is sought. For
10purposes of making the calculations required by this
11subsection (b), if the relevant hospital entity is a hospital
12owner that owns more than one hospital, the value of the
13services or activities listed in subsection (c) shall be
14calculated on the basis of only those services and activities
15relating to the hospital that includes the subject property,
16and the relevant hospital entity's estimated property tax
17liability shall be calculated only with respect to the
18properties comprising that hospital. In the case of a
19multi-state hospital system or hospital affiliate, the value
20of the services or activities listed in subsection (c) shall
21be calculated on the basis of only those services and
22activities that occur in Illinois and the relevant hospital
23entity's estimated property tax liability shall be calculated
24only with respect to its property located in Illinois.
25    (c) The following services and activities shall be
26considered for purposes of making the calculations required by

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        replacement method whereby the exempt square footage
2        of all such buildings is multiplied by the replacement
3        cost per square foot for Class A Average building
4        found in the most recent edition of the Marshall &
5        Swift Valuation Services Manual, adjusted by any
6        appropriate current cost and local multipliers.
7            (B) Depreciation, for purposes of calculating the
8        estimated fair market value of buildings on the
9        property, is applied by utilizing a weighted mean life
10        for the buildings based on original construction and
11        assuming a 40-year life for hospital buildings and the
12        applicable life for other types of buildings as
13        specified in the American Hospital Association
14        publication "Estimated Useful Lives of Depreciable
15        Hospital Assets". In the case of hospital buildings,
16        the remaining life is divided by 40 and this ratio is
17        multiplied by the replacement cost of the buildings to
18        obtain an estimated fair market value of buildings. If
19        a hospital building is older than 35 years, a
20        remaining life of 5 years for residual value is
21        assumed; and if a building is less than 8 years old, a
22        remaining life of 32 years is assumed.
23            (C) The estimated assessed value of the land
24        portion of the property shall be determined by
25        multiplying (i) the per square foot average of the
26        assessed values of three parcels of land (not

 

 

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

 

 

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1    that is the titleholder of a hospital.
2        (3) "Hospital affiliate" means any corporation,
3    partnership, limited partnership, joint venture, limited
4    liability company, association or other organization,
5    other than a hospital owner, that directly or indirectly
6    controls, is controlled by, or is under common control
7    with one or more hospital owners and that supports, is
8    supported by, or acts in furtherance of the exempt health
9    care purposes of at least one of those hospital owners'
10    hospitals.
11        (4) "Hospital system" means a hospital and one or more
12    other hospitals or hospital affiliates related by common
13    control or ownership.
14        (5) "Control" relating to hospital owners, hospital
15    affiliates, or hospital systems means possession, direct
16    or indirect, of the power to direct or cause the direction
17    of the management and policies of the entity, whether
18    through ownership of assets, membership interest, other
19    voting or governance rights, by contract or otherwise.
20        (6) "Hospital applicant" means a hospital owner or
21    hospital affiliate that files an application for an
22    exemption or renewal of exemption under this Section.
23        (7) "Relevant hospital entity" means (A) the hospital
24    owner, in the case of a hospital applicant that is a
25    hospital owner, and (B) at the election of a hospital
26    applicant that is a hospital affiliate, either (i) the

 

 

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1    hospital affiliate or (ii) the hospital system to which
2    the hospital applicant belongs, including any hospitals or
3    hospital affiliates that are related by common control or
4    ownership.
5        (8) "Subject property" means property used for the
6    calculation under subsection (b) of this Section.
7        (9) "Hospital year" means the fiscal year of the
8    relevant hospital entity, or the fiscal year of one of the
9    hospital owners in the hospital system if the relevant
10    hospital entity is a hospital system with members with
11    different fiscal years, that ends in the year for which
12    the exemption is sought.
13    (i) It is the intent of the General Assembly that any
14exemptions taken, granted, or renewed under this Section prior
15to the effective date of this amendatory Act of the 100th
16General Assembly are hereby validated.
17    (j) It is the intent of the General Assembly that the
18exemption under this Section applies on a continuous basis. If
19this amendatory Act of the 102nd General Assembly takes effect
20after July 1, 2022, any exemptions taken, granted, or renewed
21under this Section on or after July 1, 2022 and prior to the
22effective date of this amendatory Act of the 102nd General
23Assembly are hereby validated.
24    (k) This Section is exempt from the provisions of Section
253-90.
26(Source: P.A. 99-143, eff. 7-27-15; 100-1181, eff. 3-8-19.)
 

 

 

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1    Section 25-15. The Service Use Tax Act is amended by
2changing Section 3-8 as follows:
 
3    (35 ILCS 110/3-8)
4    Sec. 3-8. Hospital exemption.
5    (a) Tangible Until July 1, 2022, tangible personal
6property sold to or used by a hospital owner that owns one or
7more hospitals licensed under the Hospital Licensing Act or
8operated under the University of Illinois Hospital Act, or a
9hospital affiliate that is not already exempt under another
10provision of this Act and meets the criteria for an exemption
11under this Section, is exempt from taxation under this Act.
12    (b) A hospital owner or hospital affiliate satisfies the
13conditions for an exemption under this Section if the value of
14qualified services or activities listed in subsection (c) of
15this Section for the hospital year equals or exceeds the
16relevant hospital entity's estimated property tax liability,
17without regard to any property tax exemption granted under
18Section 15-86 of the Property Tax Code, for the calendar year
19in which exemption or renewal of exemption is sought. For
20purposes of making the calculations required by this
21subsection (b), if the relevant hospital entity is a hospital
22owner that owns more than one hospital, the value of the
23services or activities listed in subsection (c) shall be
24calculated on the basis of only those services and activities

 

 

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1relating to the hospital that includes the subject property,
2and the relevant hospital entity's estimated property tax
3liability shall be calculated only with respect to the
4properties comprising that hospital. In the case of a
5multi-state hospital system or hospital affiliate, the value
6of the services or activities listed in subsection (c) shall
7be calculated on the basis of only those services and
8activities that occur in Illinois and the relevant hospital
9entity's estimated property tax liability shall be calculated
10only with respect to its property located in Illinois.
11    (c) The following services and activities shall be
12considered for purposes of making the calculations required by
13subsection (b):
14        (1) Charity care. Free or discounted services provided
15    pursuant to the relevant hospital entity's financial
16    assistance policy, measured at cost, including discounts
17    provided under the Hospital Uninsured Patient Discount
18    Act.
19        (2) Health services to low-income and underserved
20    individuals. Other unreimbursed costs of the relevant
21    hospital entity for providing without charge, paying for,
22    or subsidizing goods, activities, or services for the
23    purpose of addressing the health of low-income or
24    underserved individuals. Those activities or services may
25    include, but are not limited to: financial or in-kind
26    support to affiliated or unaffiliated hospitals, hospital

 

 

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

 

 

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

 

 

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

 

 

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1    multiplied by the cost to charge ratio taken from the
2    hospital's most recently filed Medicare cost report (CMS
3    2252-10 Worksheet, Part I)) of patients treated in the
4    relevant hospital entity's emergency department.
5        (7) Any other activity by the relevant hospital entity
6    that the Department determines relieves the burden of
7    government or addresses the health of low-income or
8    underserved individuals.
9    (d) The hospital applicant shall include information in
10its exemption application establishing that it satisfies the
11requirements of subsection (b). For purposes of making the
12calculations required by subsection (b), the hospital
13applicant may for each year elect to use either (1) the value
14of the services or activities listed in subsection (e) for the
15hospital year or (2) the average value of those services or
16activities for the 3 fiscal years ending with the hospital
17year. If the relevant hospital entity has been in operation
18for less than 3 completed fiscal years, then the latter
19calculation, if elected, shall be performed on a pro rata
20basis.
21    (e) For purposes of making the calculations required by
22this Section:
23        (1) particular services or activities eligible for
24    consideration under any of the paragraphs (1) through (7)
25    of subsection (c) may not be counted under more than one of
26    those paragraphs; and

 

 

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

 

 

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1        (2) The estimated assessed value of the exempt portion
2    of the property equals the sum of (i) the estimated fair
3    market value of buildings on the property, as determined
4    in accordance with subparagraphs (A) and (B) of this item
5    (2), multiplied by the applicable assessment factor, and
6    (ii) the estimated assessed value of the land portion of
7    the property, as determined in accordance with
8    subparagraph (C).
9            (A) The "estimated fair market value of buildings
10        on the property" means the replacement value of any
11        exempt portion of buildings on the property, minus
12        depreciation, determined utilizing the cost
13        replacement method whereby the exempt square footage
14        of all such buildings is multiplied by the replacement
15        cost per square foot for Class A Average building
16        found in the most recent edition of the Marshall &
17        Swift Valuation Services Manual, adjusted by any
18        appropriate current cost and local multipliers.
19            (B) Depreciation, for purposes of calculating the
20        estimated fair market value of buildings on the
21        property, is applied by utilizing a weighted mean life
22        for the buildings based on original construction and
23        assuming a 40-year life for hospital buildings and the
24        applicable life for other types of buildings as
25        specified in the American Hospital Association
26        publication "Estimated Useful Lives of Depreciable

 

 

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1        Hospital Assets". In the case of hospital buildings,
2        the remaining life is divided by 40 and this ratio is
3        multiplied by the replacement cost of the buildings to
4        obtain an estimated fair market value of buildings. If
5        a hospital building is older than 35 years, a
6        remaining life of 5 years for residual value is
7        assumed; and if a building is less than 8 years old, a
8        remaining life of 32 years is assumed.
9            (C) The estimated assessed value of the land
10        portion of the property shall be determined by
11        multiplying (i) the per square foot average of the
12        assessed values of three parcels of land (not
13        including farm land, and excluding the assessed value
14        of the improvements thereon) reasonably comparable to
15        the property, by (ii) the number of square feet
16        comprising the exempt portion of the property's land
17        square footage.
18        (3) The assessment factor, State equalization rate,
19    and tax rate (including any special factors such as
20    Enterprise Zones) used in calculating the estimated
21    property tax liability shall be for the most recent year
22    that is publicly available from the applicable chief
23    county assessment officer or officers at least 90 days
24    before the end of the hospital year.
25        (4) The method utilized to calculate estimated
26    property tax liability for purposes of this Section 15-86

 

 

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

 

 

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

 

 

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1to the effective date of this amendatory Act of the 100th
2General Assembly are hereby validated.
3    (j) It is the intent of the General Assembly that the
4exemption under this Section applies on a continuous basis. If
5this amendatory Act of the 102nd General Assembly takes effect
6after July 1, 2022, any exemptions taken, granted, or renewed
7under this Section on or after July 1, 2022 and prior to the
8effective date of this amendatory Act of the 102nd General
9Assembly are hereby validated.
10    (k) This Section is exempt from the provisions of Section
113-75.
12(Source: P.A. 99-143, eff. 7-27-15; 100-1181, eff. 3-8-19.)
 
13    Section 25-20. The Service Occupation Tax Act is amended
14by changing Section 3-8 as follows:
 
15    (35 ILCS 115/3-8)
16    Sec. 3-8. Hospital exemption.
17    (a) Tangible Until July 1, 2022, tangible personal
18property sold to or used by a hospital owner that owns one or
19more hospitals licensed under the Hospital Licensing Act or
20operated under the University of Illinois Hospital Act, or a
21hospital affiliate that is not already exempt under another
22provision of this Act and meets the criteria for an exemption
23under this Section, is exempt from taxation under this Act.
24    (b) A hospital owner or hospital affiliate satisfies the

 

 

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1conditions for an exemption under this Section if the value of
2qualified services or activities listed in subsection (c) of
3this Section for the hospital year equals or exceeds the
4relevant hospital entity's estimated property tax liability,
5without regard to any property tax exemption granted under
6Section 15-86 of the Property Tax Code, for the calendar year
7in which exemption or renewal of exemption is sought. For
8purposes of making the calculations required by this
9subsection (b), if the relevant hospital entity is a hospital
10owner that owns more than one hospital, the value of the
11services or activities listed in subsection (c) shall be
12calculated on the basis of only those services and activities
13relating to the hospital that includes the subject property,
14and the relevant hospital entity's estimated property tax
15liability shall be calculated only with respect to the
16properties comprising that hospital. In the case of a
17multi-state hospital system or hospital affiliate, the value
18of the services or activities listed in subsection (c) shall
19be calculated on the basis of only those services and
20activities that occur in Illinois and the relevant hospital
21entity's estimated property tax liability shall be calculated
22only with respect to its property located in Illinois.
23    (c) The following services and activities shall be
24considered for purposes of making the calculations required by
25subsection (b):
26        (1) Charity care. Free or discounted services provided

 

 

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1    pursuant to the relevant hospital entity's financial
2    assistance policy, measured at cost, including discounts
3    provided under the Hospital Uninsured Patient Discount
4    Act.
5        (2) Health services to low-income and underserved
6    individuals. Other unreimbursed costs of the relevant
7    hospital entity for providing without charge, paying for,
8    or subsidizing goods, activities, or services for the
9    purpose of addressing the health of low-income or
10    underserved individuals. Those activities or services may
11    include, but are not limited to: financial or in-kind
12    support to affiliated or unaffiliated hospitals, hospital
13    affiliates, community clinics, or programs that treat
14    low-income or underserved individuals; paying for or
15    subsidizing health care professionals who care for
16    low-income or underserved individuals; providing or
17    subsidizing outreach or educational services to low-income
18    or underserved individuals for disease management and
19    prevention; free or subsidized goods, supplies, or
20    services needed by low-income or underserved individuals
21    because of their medical condition; and prenatal or
22    childbirth outreach to low-income or underserved persons.
23        (3) Subsidy of State or local governments. Direct or
24    indirect financial or in-kind subsidies of State or local
25    governments by the relevant hospital entity that pay for
26    or subsidize activities or programs related to health care

 

 

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

 

 

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

 

 

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1    low-income individuals shall be determined using the ratio
2    calculated by adding the relevant hospital entity's costs
3    attributable to charity care, Medicaid, other means-tested
4    government programs, Medicare patients with disabilities
5    under age 65, and dual-eligible Medicare/Medicaid patients
6    and dividing that total by the relevant hospital entity's
7    total costs. Such costs for the numerator and denominator
8    shall be determined by multiplying gross charges by the
9    cost to charge ratio taken from the hospital's most
10    recently filed Medicare cost report (CMS 2252-10
11    Worksheet, Part I). In the case of emergency services, the
12    ratio shall be calculated using costs (gross charges
13    multiplied by the cost to charge ratio taken from the
14    hospital's most recently filed Medicare cost report (CMS
15    2252-10 Worksheet, Part I)) of patients treated in the
16    relevant hospital entity's emergency department.
17        (7) Any other activity by the relevant hospital entity
18    that the Department determines relieves the burden of
19    government or addresses the health of low-income or
20    underserved individuals.
21    (d) The hospital applicant shall include information in
22its exemption application establishing that it satisfies the
23requirements of subsection (b). For purposes of making the
24calculations required by subsection (b), the hospital
25applicant may for each year elect to use either (1) the value
26of the services or activities listed in subsection (e) for the

 

 

10200SB0157ham002- 95 -LRB102 10128 HLH 39050 a

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

 

 

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1    whole or in part is currently being sought, and then
2    aggregated as applicable, as if the exempt portion of
3    those properties were subject to tax, calculated with
4    respect to each such property by multiplying:
5            (A) the lesser of (i) the actual assessed value,
6        if any, of the portion of the property for which an
7        exemption is sought or (ii) an estimated assessed
8        value of the exempt portion of such property as
9        determined in item (2) of this subsection (g), by
10            (B) the applicable State equalization rate
11        (yielding the equalized assessed value), by
12            (C) the applicable tax rate.
13        (2) The estimated assessed value of the exempt portion
14    of the property equals the sum of (i) the estimated fair
15    market value of buildings on the property, as determined
16    in accordance with subparagraphs (A) and (B) of this item
17    (2), multiplied by the applicable assessment factor, and
18    (ii) the estimated assessed value of the land portion of
19    the property, as determined in accordance with
20    subparagraph (C).
21            (A) The "estimated fair market value of buildings
22        on the property" means the replacement value of any
23        exempt portion of buildings on the property, minus
24        depreciation, determined utilizing the cost
25        replacement method whereby the exempt square footage
26        of all such buildings is multiplied by the replacement

 

 

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1        cost per square foot for Class A Average building
2        found in the most recent edition of the Marshall &
3        Swift Valuation Services Manual, adjusted by any
4        appropriate current cost and local multipliers.
5            (B) Depreciation, for purposes of calculating the
6        estimated fair market value of buildings on the
7        property, is applied by utilizing a weighted mean life
8        for the buildings based on original construction and
9        assuming a 40-year life for hospital buildings and the
10        applicable life for other types of buildings as
11        specified in the American Hospital Association
12        publication "Estimated Useful Lives of Depreciable
13        Hospital Assets". In the case of hospital buildings,
14        the remaining life is divided by 40 and this ratio is
15        multiplied by the replacement cost of the buildings to
16        obtain an estimated fair market value of buildings. If
17        a hospital building is older than 35 years, a
18        remaining life of 5 years for residual value is
19        assumed; and if a building is less than 8 years old, a
20        remaining life of 32 years is assumed.
21            (C) The estimated assessed value of the land
22        portion of the property shall be determined by
23        multiplying (i) the per square foot average of the
24        assessed values of three parcels of land (not
25        including farm land, and excluding the assessed value
26        of the improvements thereon) reasonably comparable to

 

 

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

 

 

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

 

 

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1    hospital affiliates that are related by common control or
2    ownership.
3        (8) "Subject property" means property used for the
4    calculation under subsection (b) of this Section.
5        (9) "Hospital year" means the fiscal year of the
6    relevant hospital entity, or the fiscal year of one of the
7    hospital owners in the hospital system if the relevant
8    hospital entity is a hospital system with members with
9    different fiscal years, that ends in the year for which
10    the exemption is sought.
11    (i) It is the intent of the General Assembly that any
12exemptions taken, granted, or renewed under this Section prior
13to the effective date of this amendatory Act of the 100th
14General Assembly are hereby validated.
15    (j) It is the intent of the General Assembly that the
16exemption under this Section applies on a continuous basis. If
17this amendatory Act of the 102nd General Assembly takes effect
18after July 1, 2022, any exemptions taken, granted, or renewed
19under this Section on or after July 1, 2022 and prior to the
20effective date of this amendatory Act of the 102nd General
21Assembly are hereby validated.
22    (k) This Section is exempt from the provisions of Section
233-55.
24(Source: P.A. 99-143, eff. 7-27-15; 100-1181, eff. 3-8-19.)
 
25    Section 25-25. The Retailers' Occupation Tax Act is

 

 

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1amended by changing Section 2-9 as follows:
 
2    (35 ILCS 120/2-9)
3    Sec. 2-9. Hospital exemption.
4    (a) Tangible Until July 1, 2022, tangible personal
5property sold to or used by a hospital owner that owns one or
6more hospitals licensed under the Hospital Licensing Act or
7operated under the University of Illinois Hospital Act, or a
8hospital affiliate that is not already exempt under another
9provision of this Act and meets the criteria for an exemption
10under this Section, is exempt from taxation under this Act.
11    (b) A hospital owner or hospital affiliate satisfies the
12conditions for an exemption under this Section if the value of
13qualified services or activities listed in subsection (c) of
14this Section for the hospital year equals or exceeds the
15relevant hospital entity's estimated property tax liability,
16without regard to any property tax exemption granted under
17Section 15-86 of the Property Tax Code, for the calendar year
18in which exemption or renewal of exemption is sought. For
19purposes of making the calculations required by this
20subsection (b), if the relevant hospital entity is a hospital
21owner that owns more than one hospital, the value of the
22services or activities listed in subsection (c) shall be
23calculated on the basis of only those services and activities
24relating to the hospital that includes the subject property,
25and the relevant hospital entity's estimated property tax

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    2252-10 Worksheet, Part I)) of patients treated in the
2    relevant hospital entity's emergency department.
3        (7) Any other activity by the relevant hospital entity
4    that the Department determines relieves the burden of
5    government or addresses the health of low-income or
6    underserved individuals.
7    (d) The hospital applicant shall include information in
8its exemption application establishing that it satisfies the
9requirements of subsection (b). For purposes of making the
10calculations required by subsection (b), the hospital
11applicant may for each year elect to use either (1) the value
12of the services or activities listed in subsection (e) for the
13hospital year or (2) the average value of those services or
14activities for the 3 fiscal years ending with the hospital
15year. If the relevant hospital entity has been in operation
16for less than 3 completed fiscal years, then the latter
17calculation, if elected, shall be performed on a pro rata
18basis.
19    (e) For purposes of making the calculations required by
20this Section:
21        (1) particular services or activities eligible for
22    consideration under any of the paragraphs (1) through (7)
23    of subsection (c) may not be counted under more than one of
24    those paragraphs; and
25        (2) the amount of unreimbursed costs and the amount of
26    subsidy shall not be reduced by restricted or unrestricted

 

 

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1    payments received by the relevant hospital entity as
2    contributions deductible under Section 170(a) of the
3    Internal Revenue Code.
4    (f) (Blank).
5    (g) Estimation of Exempt Property Tax Liability. The
6estimated property tax liability used for the determination in
7subsection (b) shall be calculated as follows:
8        (1) "Estimated property tax liability" means the
9    estimated dollar amount of property tax that would be
10    owed, with respect to the exempt portion of each of the
11    relevant hospital entity's properties that are already
12    fully or partially exempt, or for which an exemption in
13    whole or in part is currently being sought, and then
14    aggregated as applicable, as if the exempt portion of
15    those properties were subject to tax, calculated with
16    respect to each such property by multiplying:
17            (A) the lesser of (i) the actual assessed value,
18        if any, of the portion of the property for which an
19        exemption is sought or (ii) an estimated assessed
20        value of the exempt portion of such property as
21        determined in item (2) of this subsection (g), by
22            (B) the applicable State equalization rate
23        (yielding the equalized assessed value), by
24            (C) the applicable tax rate.
25        (2) The estimated assessed value of the exempt portion
26    of the property equals the sum of (i) the estimated fair

 

 

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

 

 

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1        multiplied by the replacement cost of the buildings to
2        obtain an estimated fair market value of buildings. If
3        a hospital building is older than 35 years, a
4        remaining life of 5 years for residual value is
5        assumed; and if a building is less than 8 years old, a
6        remaining life of 32 years is assumed.
7            (C) The estimated assessed value of the land
8        portion of the property shall be determined by
9        multiplying (i) the per square foot average of the
10        assessed values of three parcels of land (not
11        including farm land, and excluding the assessed value
12        of the improvements thereon) reasonably comparable to
13        the property, by (ii) the number of square feet
14        comprising the exempt portion of the property's land
15        square footage.
16        (3) The assessment factor, State equalization rate,
17    and tax rate (including any special factors such as
18    Enterprise Zones) used in calculating the estimated
19    property tax liability shall be for the most recent year
20    that is publicly available from the applicable chief
21    county assessment officer or officers at least 90 days
22    before the end of the hospital year.
23        (4) The method utilized to calculate estimated
24    property tax liability for purposes of this Section 15-86
25    shall not be utilized for the actual valuation,
26    assessment, or taxation of property pursuant to the

 

 

10200SB0157ham002- 110 -LRB102 10128 HLH 39050 a

1    Property Tax Code.
2    (h) For the purpose of this Section, the following terms
3shall have the meanings set forth below:
4        (1) "Hospital" means any institution, place, building,
5    buildings on a campus, or other health care facility
6    located in Illinois that is licensed under the Hospital
7    Licensing Act and has a hospital owner.
8        (2) "Hospital owner" means a not-for-profit
9    corporation that is the titleholder of a hospital, or the
10    owner of the beneficial interest in an Illinois land trust
11    that is the titleholder of a hospital.
12        (3) "Hospital affiliate" means any corporation,
13    partnership, limited partnership, joint venture, limited
14    liability company, association or other organization,
15    other than a hospital owner, that directly or indirectly
16    controls, is controlled by, or is under common control
17    with one or more hospital owners and that supports, is
18    supported by, or acts in furtherance of the exempt health
19    care purposes of at least one of those hospital owners'
20    hospitals.
21        (4) "Hospital system" means a hospital and one or more
22    other hospitals or hospital affiliates related by common
23    control or ownership.
24        (5) "Control" relating to hospital owners, hospital
25    affiliates, or hospital systems means possession, direct
26    or indirect, of the power to direct or cause the direction

 

 

10200SB0157ham002- 111 -LRB102 10128 HLH 39050 a

1    of the management and policies of the entity, whether
2    through ownership of assets, membership interest, other
3    voting or governance rights, by contract or otherwise.
4        (6) "Hospital applicant" means a hospital owner or
5    hospital affiliate that files an application for an
6    exemption or renewal of exemption under this Section.
7        (7) "Relevant hospital entity" means (A) the hospital
8    owner, in the case of a hospital applicant that is a
9    hospital owner, and (B) at the election of a hospital
10    applicant that is a hospital affiliate, either (i) the
11    hospital affiliate or (ii) the hospital system to which
12    the hospital applicant belongs, including any hospitals or
13    hospital affiliates that are related by common control or
14    ownership.
15        (8) "Subject property" means property used for the
16    calculation under subsection (b) of this Section.
17        (9) "Hospital year" means the fiscal year of the
18    relevant hospital entity, or the fiscal year of one of the
19    hospital owners in the hospital system if the relevant
20    hospital entity is a hospital system with members with
21    different fiscal years, that ends in the year for which
22    the exemption is sought.
23    (i) It is the intent of the General Assembly that any
24exemptions taken, granted, or renewed under this Section prior
25to the effective date of this amendatory Act of the 100th
26General Assembly are hereby validated.

 

 

10200SB0157ham002- 112 -LRB102 10128 HLH 39050 a

1    (j) It is the intent of the General Assembly that the
2exemption under this Section applies on a continuous basis. If
3this amendatory Act of the 102nd General Assembly takes effect
4after July 1, 2022, any exemptions taken, granted, or renewed
5under this Section on or after July 1, 2022 and prior to the
6effective date of this amendatory Act of the 102nd General
7Assembly are hereby validated.
8    (k) This Section is exempt from the provisions of Section
92-70.
10(Source: P.A. 99-143, eff. 7-27-15; 100-1181, eff. 3-8-19.)
 
11
ARTICLE 30. ORGAN DONATION

 
12    Section 30-5. The Illinois Income Tax Act is amended by
13changing Section 704A as follows:
 
14    (35 ILCS 5/704A)
15    Sec. 704A. Employer's return and payment of tax withheld.
16    (a) In general, every employer who deducts and withholds
17or is required to deduct and withhold tax under this Act on or
18after January 1, 2008 shall make those payments and returns as
19provided in this Section.
20    (b) Returns. Every employer shall, in the form and manner
21required by the Department, make returns with respect to taxes
22withheld or required to be withheld under this Article 7 for
23each quarter beginning on or after January 1, 2008, on or

 

 

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1before the last day of the first month following the close of
2that quarter.
3    (c) Payments. With respect to amounts withheld or required
4to be withheld on or after January 1, 2008:
5        (1) Semi-weekly payments. For each calendar year, each
6    employer who withheld or was required to withhold more
7    than $12,000 during the one-year period ending on June 30
8    of the immediately preceding calendar year, payment must
9    be made:
10            (A) on or before each Friday of the calendar year,
11        for taxes withheld or required to be withheld on the
12        immediately preceding Saturday, Sunday, Monday, or
13        Tuesday;
14            (B) on or before each Wednesday of the calendar
15        year, for taxes withheld or required to be withheld on
16        the immediately preceding Wednesday, Thursday, or
17        Friday.
18        Beginning with calendar year 2011, payments made under
19    this paragraph (1) of subsection (c) must be made by
20    electronic funds transfer.
21        (2) Semi-weekly payments. Any employer who withholds
22    or is required to withhold more than $12,000 in any
23    quarter of a calendar year is required to make payments on
24    the dates set forth under item (1) of this subsection (c)
25    for each remaining quarter of that calendar year and for
26    the subsequent calendar year.

 

 

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1        (3) Monthly payments. Each employer, other than an
2    employer described in items (1) or (2) of this subsection,
3    shall pay to the Department, on or before the 15th day of
4    each month the taxes withheld or required to be withheld
5    during the immediately preceding month.
6        (4) Payments with returns. Each employer shall pay to
7    the Department, on or before the due date for each return
8    required to be filed under this Section, any tax withheld
9    or required to be withheld during the period for which the
10    return is due and not previously paid to the Department.
11    (d) Regulatory authority. The Department may, by rule:
12        (1) Permit employers, in lieu of the requirements of
13    subsections (b) and (c), to file annual returns due on or
14    before January 31 of the year for taxes withheld or
15    required to be withheld during the previous calendar year
16    and, if the aggregate amounts required to be withheld by
17    the employer under this Article 7 (other than amounts
18    required to be withheld under Section 709.5) do not exceed
19    $1,000 for the previous calendar year, to pay the taxes
20    required to be shown on each such return no later than the
21    due date for such return.
22        (2) Provide that any payment required to be made under
23    subsection (c)(1) or (c)(2) is deemed to be timely to the
24    extent paid by electronic funds transfer on or before the
25    due date for deposit of federal income taxes withheld
26    from, or federal employment taxes due with respect to, the

 

 

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

 

 

10200SB0157ham002- 116 -LRB102 10128 HLH 39050 a

1Department.
2    With respect to taxes withheld in 2017 and subsequent
3calendar years, the Department may, by rule, require that any
4return (including any amended return) under this Section and
5any W-2 Form that is required to be submitted to the Department
6must be submitted on magnetic media or electronically.
7    The due date for submitting W-2 Forms shall be as
8prescribed by the Department by rule.
9    (g) For amounts deducted or withheld after December 31,
102009, a taxpayer who makes an election under subsection (f) of
11Section 5-15 of the Economic Development for a Growing Economy
12Tax Credit Act for a taxable year shall be allowed a credit
13against payments due under this Section for amounts withheld
14during the first calendar year beginning after the end of that
15taxable year equal to the amount of the credit for the
16incremental income tax attributable to full-time employees of
17the taxpayer awarded to the taxpayer by the Department of
18Commerce and Economic Opportunity under the Economic
19Development for a Growing Economy Tax Credit Act for the
20taxable year and credits not previously claimed and allowed to
21be carried forward under Section 211(4) of this Act as
22provided in subsection (f) of Section 5-15 of the Economic
23Development for a Growing Economy Tax Credit Act. The credit
24or credits may not reduce the taxpayer's obligation for any
25payment due under this Section to less than zero. If the amount
26of the credit or credits exceeds the total payments due under

 

 

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1this Section with respect to amounts withheld during the
2calendar year, the excess may be carried forward and applied
3against the taxpayer's liability under this Section in the
4succeeding calendar years as allowed to be carried forward
5under paragraph (4) of Section 211 of this Act. The credit or
6credits shall be applied to the earliest year for which there
7is a tax liability. If there are credits from more than one
8taxable year that are available to offset a liability, the
9earlier credit shall be applied first. Each employer who
10deducts and withholds or is required to deduct and withhold
11tax under this Act and who retains income tax withholdings
12under subsection (f) of Section 5-15 of the Economic
13Development for a Growing Economy Tax Credit Act must make a
14return with respect to such taxes and retained amounts in the
15form and manner that the Department, by rule, requires and pay
16to the Department or to a depositary designated by the
17Department those withheld taxes not retained by the taxpayer.
18For purposes of this subsection (g), the term taxpayer shall
19include taxpayer and members of the taxpayer's unitary
20business group as defined under paragraph (27) of subsection
21(a) of Section 1501 of this Act. This Section is exempt from
22the provisions of Section 250 of this Act. No credit awarded
23under the Economic Development for a Growing Economy Tax
24Credit Act for agreements entered into on or after January 1,
252015 may be credited against payments due under this Section.
26    (g-1) For amounts deducted or withheld after December 31,

 

 

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12024, a taxpayer who makes an election under the Reimagining
2Electric Vehicles in Illinois Act shall be allowed a credit
3against payments due under this Section for amounts withheld
4during the first quarterly reporting period beginning after
5the certificate is issued equal to the portion of the REV
6Illinois Credit attributable to the incremental income tax
7attributable to new employees and retained employees as
8certified by the Department of Commerce and Economic
9Opportunity pursuant to an agreement with the taxpayer under
10the Reimagining Electric Vehicles in Illinois Act for the
11taxable year. The credit or credits may not reduce the
12taxpayer's obligation for any payment due under this Section
13to less than zero. If the amount of the credit or credits
14exceeds the total payments due under this Section with respect
15to amounts withheld during the quarterly reporting period, the
16excess may be carried forward and applied against the
17taxpayer's liability under this Section in the succeeding
18quarterly reporting period as allowed to be carried forward
19under paragraph (4) of Section 211 of this Act. The credit or
20credits shall be applied to the earliest quarterly reporting
21period for which there is a tax liability. If there are credits
22from more than one quarterly reporting period that are
23available to offset a liability, the earlier credit shall be
24applied first. Each employer who deducts and withholds or is
25required to deduct and withhold tax under this Act and who
26retains income tax withholdings this subsection must make a

 

 

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1return with respect to such taxes and retained amounts in the
2form and manner that the Department, by rule, requires and pay
3to the Department or to a depositary designated by the
4Department those withheld taxes not retained by the taxpayer.
5For purposes of this subsection (g-1), the term taxpayer shall
6include taxpayer and members of the taxpayer's unitary
7business group as defined under paragraph (27) of subsection
8(a) of Section 1501 of this Act. This Section is exempt from
9the provisions of Section 250 of this Act.
10    (h) An employer may claim a credit against payments due
11under this Section for amounts withheld during the first
12calendar year ending after the date on which a tax credit
13certificate was issued under Section 35 of the Small Business
14Job Creation Tax Credit Act. The credit shall be equal to the
15amount shown on the certificate, but may not reduce the
16taxpayer's obligation for any payment due under this Section
17to less than zero. If the amount of the credit exceeds the
18total payments due under this Section with respect to amounts
19withheld during the calendar year, the excess may be carried
20forward and applied against the taxpayer's liability under
21this Section in the 5 succeeding calendar years. The credit
22shall be applied to the earliest year for which there is a tax
23liability. If there are credits from more than one calendar
24year that are available to offset a liability, the earlier
25credit shall be applied first. This Section is exempt from the
26provisions of Section 250 of this Act.

 

 

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1    (i) Each employer with 50 or fewer full-time equivalent
2employees during the reporting period may claim a credit
3against the payments due under this Section for each qualified
4employee in an amount equal to the maximum credit allowable.
5The credit may be taken against payments due for reporting
6periods that begin on or after January 1, 2020, and end on or
7before December 31, 2027. An employer may not claim a credit
8for an employee who has worked fewer than 90 consecutive days
9immediately preceding the reporting period; however, such
10credits may accrue during that 90-day period and be claimed
11against payments under this Section for future reporting
12periods after the employee has worked for the employer at
13least 90 consecutive days. In no event may the credit exceed
14the employer's liability for the reporting period. Each
15employer who deducts and withholds or is required to deduct
16and withhold tax under this Act and who retains income tax
17withholdings under this subsection must make a return with
18respect to such taxes and retained amounts in the form and
19manner that the Department, by rule, requires and pay to the
20Department or to a depositary designated by the Department
21those withheld taxes not retained by the employer.
22    For each reporting period, the employer may not claim a
23credit or credits for more employees than the number of
24employees making less than the minimum or reduced wage for the
25current calendar year during the last reporting period of the
26preceding calendar year. Notwithstanding any other provision

 

 

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1of this subsection, an employer shall not be eligible for
2credits for a reporting period unless the average wage paid by
3the employer per employee for all employees making less than
4$55,000 during the reporting period is greater than the
5average wage paid by the employer per employee for all
6employees making less than $55,000 during the same reporting
7period of the prior calendar year.
8    For purposes of this subsection (i):
9    "Compensation paid in Illinois" has the meaning ascribed
10to that term under Section 304(a)(2)(B) of this Act.
11    "Employer" and "employee" have the meaning ascribed to
12those terms in the Minimum Wage Law, except that "employee"
13also includes employees who work for an employer with fewer
14than 4 employees. Employers that operate more than one
15establishment pursuant to a franchise agreement or that
16constitute members of a unitary business group shall aggregate
17their employees for purposes of determining eligibility for
18the credit.
19    "Full-time equivalent employees" means the ratio of the
20number of paid hours during the reporting period and the
21number of working hours in that period.
22    "Maximum credit" means the percentage listed below of the
23difference between the amount of compensation paid in Illinois
24to employees who are paid not more than the required minimum
25wage reduced by the amount of compensation paid in Illinois to
26employees who were paid less than the current required minimum

 

 

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1wage during the reporting period prior to each increase in the
2required minimum wage on January 1. If an employer pays an
3employee more than the required minimum wage and that employee
4previously earned less than the required minimum wage, the
5employer may include the portion that does not exceed the
6required minimum wage as compensation paid in Illinois to
7employees who are paid not more than the required minimum
8wage.
9        (1) 25% for reporting periods beginning on or after
10    January 1, 2020 and ending on or before December 31, 2020;
11        (2) 21% for reporting periods beginning on or after
12    January 1, 2021 and ending on or before December 31, 2021;
13        (3) 17% for reporting periods beginning on or after
14    January 1, 2022 and ending on or before December 31, 2022;
15        (4) 13% for reporting periods beginning on or after
16    January 1, 2023 and ending on or before December 31, 2023;
17        (5) 9% for reporting periods beginning on or after
18    January 1, 2024 and ending on or before December 31, 2024;
19        (6) 5% for reporting periods beginning on or after
20    January 1, 2025 and ending on or before December 31, 2025.
21    The amount computed under this subsection may continue to
22be claimed for reporting periods beginning on or after January
231, 2026 and:
24        (A) ending on or before December 31, 2026 for
25    employers with more than 5 employees; or
26        (B) ending on or before December 31, 2027 for

 

 

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1    employers with no more than 5 employees.
2    "Qualified employee" means an employee who is paid not
3more than the required minimum wage and has an average wage
4paid per hour by the employer during the reporting period
5equal to or greater than his or her average wage paid per hour
6by the employer during each reporting period for the
7immediately preceding 12 months. A new qualified employee is
8deemed to have earned the required minimum wage in the
9preceding reporting period.
10    "Reporting period" means the quarter for which a return is
11required to be filed under subsection (b) of this Section.
12    (j) For reporting periods beginning on or after January 1,
132023, if a private employer grants all of its employees the
14option of taking a paid leave of absence of at least 30 days
15for the purpose of serving as an organ donor or bone marrow
16donor, then the private employer may take a credit against the
17payments due under this Section in an amount equal to the
18amount withheld under this Section with respect to wages paid
19while the employee is on organ donation leave, not to exceed
20$1,000 in withholdings for each employee who takes organ
21donation leave. To be eligible for the credit, such a leave of
22absence must be taken without loss of pay, vacation time,
23compensatory time, personal days, or sick time for at least
24the first 30 days of the leave of absence. The private employer
25shall adopt rules governing organ donation leave, including
26rules that (i) establish conditions and procedures for

 

 

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1requesting and approving leave and (ii) require medical
2documentation of the proposed organ or bone marrow donation
3before leave is approved by the private employer. A private
4employer must provide, in the manner required by the
5Department, documentation from the employee's medical
6provider, which the private employer receives from the
7employee, that verifies the employee's organ donation. The
8private employer must also provide, in the manner required by
9the Department, documentation that shows that a qualifying
10organ donor leave policy was in place and offered to all
11qualifying employees at the time the leave was taken. For the
12private employer to receive the tax credit, the employee
13taking organ donor leave must allow for the applicable medical
14records to be disclosed to the Department. If the private
15employer cannot provide the required documentation to the
16Department, then the private employer is ineligible for the
17credit under this Section. A private employer must also
18provide, in the form required by the Department, any
19additional documentation or information required by the
20Department to administer the credit under this Section. The
21credit under this subsection (j) shall be taken within one
22year after the date upon which the organ donation leave
23begins. If the leave taken spans into a second tax year, the
24employer qualifies for the allowable credit in the later of
25the 2 years. If the amount of credit exceeds the tax liability
26for the year, the excess may be carried and applied to the tax

 

 

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1liability for the 3 taxable years following the excess credit
2year. The tax credit shall be applied to the earliest year for
3which there is a tax liability. If there are credits for more
4than one year that are available to offset liability, the
5earlier credit shall be applied first.
6    Nothing in this subsection (j) prohibits a private
7employer from providing an unpaid leave of absence to its
8employees for the purpose of serving as an organ donor or bone
9marrow donor; however, if the employer's policy provides for
10fewer than 30 days of paid leave for organ or bone marrow
11donation, then the employer shall not be eligible for the
12credit under this Section.
13    As used in this subsection (j):
14        "Organ" means any biological tissue of the human body
15    that may be donated by a living donor, including, but not
16    limited to, the kidney, liver, lung, pancreas, intestine,
17    bone, skin, or any subpart of those organs.
18        "Organ donor" means a person from whose body an organ
19    is taken to be transferred to the body of another person.
20        "Private employer" means a sole proprietorship,
21    corporation, partnership, limited liability company, or
22    other entity with one or more employees. "Private
23    employer" does not include a municipality, county, State
24    agency, or other public employer.
25    This subsection (j) is exempt from the provisions of
26Section 250 of this Act.

 

 

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1(Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21.)
 
2
ARTICLE 40. TAX REBATES

 
3    Section 40-3. The Illinois Administrative Procedure Act is
4amended by adding Section 5-45.21 as follows:
 
5    (5 ILCS 100/5-45.21 new)
6    Sec. 5-45.21. Emergency rulemaking. To provide for the
7expeditious and timely implementation of this amendatory Act
8of the 102nd General Assembly, emergency rules implementing
9Sections 208.5 and 212.1 of the Illinois Income Tax Act may be
10adopted in accordance with Section 5-45 by the Department of
11Revenue. The adoption of emergency rules authorized by Section
125-45 and this Section is deemed to be necessary for the public
13interest, safety, and welfare.
14    This Section is repealed one year after the effective date
15of this amendatory Act of the 102nd General Assembly.
 
16    Section 40-5. The State Finance Act is amended by changing
17Section 8g-1 as follows:
 
18    (30 ILCS 105/8g-1)
19    Sec. 8g-1. Fund transfers.
20    (a) (Blank).
21    (b) (Blank).

 

 

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

 

 

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

 

 

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1to the Technology Management Revolving Fund.
2    (z) In addition to any other transfers that may be
3provided by law, on the effective date of this amendatory Act
4of the 102nd General Assembly, or as soon thereafter as
5practical, but no later than June 30, 2022, the State
6Comptroller shall direct and the State Treasurer shall
7transfer the sum of $685,000,000 from the General Revenue Fund
8to the Income Tax Refund Fund. Moneys from this transfer shall
9be used for the purpose of making the one-time rebate payments
10provided under Section 212.1 of the Illinois Income Tax Act.
11    (aa) In addition to any other transfers that may be
12provided by law, beginning on the effective date of this
13amendatory Act of the 102nd General Assembly and until
14December 31, 2023, at the direction of the Department of
15Revenue, the State Comptroller shall direct and the State
16Treasurer shall transfer from the General Revenue Fund to the
17Income Tax Refund Fund any amounts needed beyond the amounts
18transferred in subsection (z) to make payments of the one-time
19rebate payments provided under Section 212.1 of the Illinois
20Income Tax Act.
21(Source: P.A. 101-10, eff. 6-5-19; 101-636, eff. 6-10-20;
22102-16, eff. 6-17-21.)
 
23    Section 40-10. The Illinois Income Tax Act is amended by
24changing Section 901 and by adding Sections 208.5 and 212.1 as
25follows:
 

 

 

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1    (35 ILCS 5/208.5 new)
2    Sec. 208.5. Residential real estate tax rebate.
3    (a) The Department shall pay a one-time rebate to every
4individual taxpayer who files with the Department, on or
5before October 17, 2022, an Illinois income tax return for tax
6year 2021 and who qualifies, in that tax year, under rules
7adopted by the Department, for the income tax credit provided
8under Section 208 of this Act. The amount of the one-time
9rebate provided under this Section shall be the lesser of: (1)
10the amount of the credit provided under Section 208 for tax
11year 2021, including any amounts that would otherwise reduce a
12taxpayer's liability to less than zero, or (2) $300 per
13principal residence. The Department shall develop a process to
14claim a rebate for taxpayers who otherwise would be eligible
15for the rebate under this Section but who did not have an
16obligation to file a 2021 Illinois income tax return because
17their exemption allowance exceeded their Illinois base income.
18    (b) On the effective date of this amendatory Act of the
19102nd General Assembly, or as soon thereafter as practical,
20but no later than June 30, 2022, the State Comptroller shall
21direct and the State Treasurer shall transfer the sum of
22$470,000,000 from the General Revenue Fund to the Income Tax
23Refund Fund.
24    (c) On July 1, 2022, or as soon thereafter as practical,
25the State Comptroller shall direct and the State Treasurer

 

 

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1shall transfer the sum of $50,000,000 from the General Revenue
2Fund to the Income Tax Refund Fund.
3    (d) In addition to any other transfers that may be
4provided for by law, beginning on the effective date of this
5amendatory Act of the 102nd General Assembly and until June
630, 2023, the Director may certify additional transfer amounts
7needed beyond the amounts specified in subsections (b) and
8(c). The State Comptroller shall direct and the State
9Treasurer shall transfer the amounts certified by the Director
10from the General Revenue Fund to the Income Tax Refund Fund.
11    (e) The one-time rebate payments provided under this
12Section shall be paid from the Income Tax Refund Fund.
13    (f) Beginning on July 5, 2022, the Department shall
14certify to the Comptroller the names of the taxpayers who are
15eligible for a one-time rebate under this Section, the amounts
16of those rebates, and any other information that the
17Comptroller requires to direct the payment of the rebates
18provided under this Section to taxpayers.
19    (g) The amount of a rebate under this Section shall not be
20included in the taxpayer's income or resources for the
21purposes of determining eligibility or benefit level in any
22means-tested benefit program administered by a governmental
23entity unless required by federal law.
24    (h) Notwithstanding any other law to the contrary, the
25rebates shall not be subject to offset by the Comptroller
26against any liability owed either to the State or to any unit

 

 

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1of local government.
2    (i) This Section is repealed on January 1, 2024.
 
3    (35 ILCS 5/212.1 new)
4    Sec. 212.1. Individual income tax rebates.
5    (a) Each taxpayer who files an individual income tax
6return under this Act, on or before October 17, 2022, for the
7taxable year that began on January 1, 2021 and whose adjusted
8gross income for the taxable year is less than (i) $400,000, in
9the case of spouses filing a joint federal tax return, or (ii)
10$200,000, in the case of all other taxpayers, is entitled to a
11one-time rebate under this Section. The amount of the rebate
12shall be $50 for single filers and $100 for spouses filing a
13joint return, plus an additional $100 for each person who is
14claimed as a dependent, up to 3 dependents, on the taxpayer's
15federal income tax return for the taxable year that began on
16January 1, 2021. A taxpayer who files an individual income tax
17return under this Act for the taxable year that began on
18January 1, 2021, and who is claimed as a dependent on another
19individual's return for that year, is ineligible for the
20rebate provided under this Section. Spouses who qualify for a
21rebate under this Section and who file a joint return shall be
22treated as a single taxpayer for the purposes of the rebate
23under this Section. For a part-year resident, the amount of
24the rebate under this Section shall be in proportion to the
25amount of the taxpayer's income that is attributable to this

 

 

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1State for the taxable year that began on January 1, 2021.
2Taxpayers who were non-residents for the taxable year that
3began on January 1, 2021 are not entitled to a rebate under
4this Section.
5    (b) Beginning on July 5, 2022, the Department shall
6certify to the Comptroller the names of the taxpayers who are
7eligible for a one-time rebate under this Section, the amounts
8of those rebates, and any other information that the
9Comptroller requires to direct the payment of the rebates
10provided under this Section to taxpayers.
11    (c) If a taxpayer files an amended return indicating that
12the taxpayer is entitled to a rebate under this Section that
13the taxpayer did not receive, or indicating that the taxpayer
14did not receive the full rebate amount to which the taxpayer is
15entitled, then the rebate shall be processed in the same
16manner as a claim for refund under Article 9. If the taxpayer
17files an amended return indicating that the taxpayer received
18a rebate under this Section to which the taxpayer is not
19entitled, then the Department shall issue a notice of
20deficiency as provided in Article 9.
21    (d) The Department shall make the rebate payments
22authorized by this Section from the Income Tax Refund Fund.
23    (e) The amount of a rebate under this Section shall not be
24included in the taxpayer's income or resources for the
25purposes of determining eligibility or benefit level in any
26means-tested benefit program administered by a governmental

 

 

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1entity unless required by federal law.
2    (f) Nothing in this Section prevents a taxpayer from
3receiving the earned income tax credit and the rebate under
4this Section for the same taxable year.
5    (g) Notwithstanding any other law to the contrary, the
6rebates shall not be subject to offset by the Comptroller
7against any liability owed either to the State or to any unit
8of local government.
9    (h) The Department shall adopt rules for the
10implementation of this Section, including emergency rules
11under Section 5-45.21 of the Illinois Administrative Procedure
12Act.
13    (i) This Section is repealed one year after the effective
14date of this amendatory Act of the 102nd General Assembly.
 
15    (35 ILCS 5/901)
16    Sec. 901. Collection authority.
17    (a) In general. The Department shall collect the taxes
18imposed by this Act. The Department shall collect certified
19past due child support amounts under Section 2505-650 of the
20Department of Revenue Law of the Civil Administrative Code of
21Illinois. Except as provided in subsections (b), (c), (e),
22(f), (g), and (h) of this Section, money collected pursuant to
23subsections (a) and (b) of Section 201 of this Act shall be
24paid into the General Revenue Fund in the State treasury;
25money collected pursuant to subsections (c) and (d) of Section

 

 

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1201 of this Act shall be paid into the Personal Property Tax
2Replacement Fund, a special fund in the State Treasury; and
3money collected under Section 2505-650 of the Department of
4Revenue Law of the Civil Administrative Code of Illinois shall
5be paid into the Child Support Enforcement Trust Fund, a
6special fund outside the State Treasury, or to the State
7Disbursement Unit established under Section 10-26 of the
8Illinois Public Aid Code, as directed by the Department of
9Healthcare and Family Services.
10    (b) Local Government Distributive Fund. Beginning August
111, 2017, the Treasurer shall transfer each month from the
12General Revenue Fund to the Local Government Distributive Fund
13an amount equal to the sum of: (i) 6.06% (10% of the ratio of
14the 3% individual income tax rate prior to 2011 to the 4.95%
15individual income tax rate after July 1, 2017) of the net
16revenue realized from the tax imposed by subsections (a) and
17(b) of Section 201 of this Act upon individuals, trusts, and
18estates during the preceding month; (ii) 6.85% (10% of the
19ratio of the 4.8% corporate income tax rate prior to 2011 to
20the 7% corporate income tax rate after July 1, 2017) of the net
21revenue realized from the tax imposed by subsections (a) and
22(b) of Section 201 of this Act upon corporations during the
23preceding month; and (iii) beginning February 1, 2022, 6.06%
24of the net revenue realized from the tax imposed by subsection
25(p) of Section 201 of this Act upon electing pass-through
26entities. Net revenue realized for a month shall be defined as

 

 

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1the revenue from the tax imposed by subsections (a) and (b) of
2Section 201 of this Act which is deposited in the General
3Revenue Fund, the Education Assistance Fund, the Income Tax
4Surcharge Local Government Distributive Fund, the Fund for the
5Advancement of Education, and the Commitment to Human Services
6Fund during the month minus the amount paid out of the General
7Revenue Fund in State warrants during that same month as
8refunds to taxpayers for overpayment of liability under the
9tax imposed by subsections (a) and (b) of Section 201 of this
10Act.
11    Notwithstanding any provision of law to the contrary,
12beginning on July 6, 2017 (the effective date of Public Act
13100-23), those amounts required under this subsection (b) to
14be transferred by the Treasurer into the Local Government
15Distributive Fund from the General Revenue Fund shall be
16directly deposited into the Local Government Distributive Fund
17as the revenue is realized from the tax imposed by subsections
18(a) and (b) of Section 201 of this Act.
19    (c) Deposits Into Income Tax Refund Fund.
20        (1) Beginning on January 1, 1989 and thereafter, the
21    Department shall deposit a percentage of the amounts
22    collected pursuant to subsections (a) and (b)(1), (2), and
23    (3) of Section 201 of this Act into a fund in the State
24    treasury known as the Income Tax Refund Fund. Beginning
25    with State fiscal year 1990 and for each fiscal year
26    thereafter, the percentage deposited into the Income Tax

 

 

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1    Refund Fund during a fiscal year shall be the Annual
2    Percentage. For fiscal year 2011, the Annual Percentage
3    shall be 8.75%. For fiscal year 2012, the Annual
4    Percentage shall be 8.75%. For fiscal year 2013, the
5    Annual Percentage shall be 9.75%. For fiscal year 2014,
6    the Annual Percentage shall be 9.5%. For fiscal year 2015,
7    the Annual Percentage shall be 10%. For fiscal year 2018,
8    the Annual Percentage shall be 9.8%. For fiscal year 2019,
9    the Annual Percentage shall be 9.7%. For fiscal year 2020,
10    the Annual Percentage shall be 9.5%. For fiscal year 2021,
11    the Annual Percentage shall be 9%. For fiscal year 2022,
12    the Annual Percentage shall be 9.25%. For all other fiscal
13    years, the Annual Percentage shall be calculated as a
14    fraction, the numerator of which shall be the amount of
15    refunds approved for payment by the Department during the
16    preceding fiscal year as a result of overpayment of tax
17    liability under subsections (a) and (b)(1), (2), and (3)
18    of Section 201 of this Act plus the amount of such refunds
19    remaining approved but unpaid at the end of the preceding
20    fiscal year, minus the amounts transferred into the Income
21    Tax Refund Fund from the Tobacco Settlement Recovery Fund,
22    and the denominator of which shall be the amounts which
23    will be collected pursuant to subsections (a) and (b)(1),
24    (2), and (3) of Section 201 of this Act during the
25    preceding fiscal year; except that in State fiscal year
26    2002, the Annual Percentage shall in no event exceed 7.6%.

 

 

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1    The Director of Revenue shall certify the Annual
2    Percentage to the Comptroller on the last business day of
3    the fiscal year immediately preceding the fiscal year for
4    which it is to be effective.
5        (2) Beginning on January 1, 1989 and thereafter, the
6    Department shall deposit a percentage of the amounts
7    collected pursuant to subsections (a) and (b)(6), (7), and
8    (8), (c) and (d) of Section 201 of this Act into a fund in
9    the State treasury known as the Income Tax Refund Fund.
10    Beginning with State fiscal year 1990 and for each fiscal
11    year thereafter, the percentage deposited into the Income
12    Tax Refund Fund during a fiscal year shall be the Annual
13    Percentage. For fiscal year 2011, the Annual Percentage
14    shall be 17.5%. For fiscal year 2012, the Annual
15    Percentage shall be 17.5%. For fiscal year 2013, the
16    Annual Percentage shall be 14%. For fiscal year 2014, the
17    Annual Percentage shall be 13.4%. For fiscal year 2015,
18    the Annual Percentage shall be 14%. For fiscal year 2018,
19    the Annual Percentage shall be 17.5%. For fiscal year
20    2019, the Annual Percentage shall be 15.5%. For fiscal
21    year 2020, the Annual Percentage shall be 14.25%. For
22    fiscal year 2021, the Annual Percentage shall be 14%. For
23    fiscal year 2022, the Annual Percentage shall be 15%. For
24    all other fiscal years, the Annual Percentage shall be
25    calculated as a fraction, the numerator of which shall be
26    the amount of refunds approved for payment by the

 

 

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1    Department during the preceding fiscal year as a result of
2    overpayment of tax liability under subsections (a) and
3    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
4    Act plus the amount of such refunds remaining approved but
5    unpaid at the end of the preceding fiscal year, and the
6    denominator of which shall be the amounts which will be
7    collected pursuant to subsections (a) and (b)(6), (7), and
8    (8), (c) and (d) of Section 201 of this Act during the
9    preceding fiscal year; except that in State fiscal year
10    2002, the Annual Percentage shall in no event exceed 23%.
11    The Director of Revenue shall certify the Annual
12    Percentage to the Comptroller on the last business day of
13    the fiscal year immediately preceding the fiscal year for
14    which it is to be effective.
15        (3) The Comptroller shall order transferred and the
16    Treasurer shall transfer from the Tobacco Settlement
17    Recovery Fund to the Income Tax Refund Fund (i)
18    $35,000,000 in January, 2001, (ii) $35,000,000 in January,
19    2002, and (iii) $35,000,000 in January, 2003.
20    (d) Expenditures from Income Tax Refund Fund.
21        (1) Beginning January 1, 1989, money in the Income Tax
22    Refund Fund shall be expended exclusively for the purpose
23    of paying refunds resulting from overpayment of tax
24    liability under Section 201 of this Act and for making
25    transfers pursuant to this subsection (d), except that in
26    State fiscal years 2022 and 2023, moneys in the Income Tax

 

 

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1    Refund Fund shall also be used to pay one-time rebate
2    payments as provided under Sections 208.5 and 212.1.
3        (2) The Director shall order payment of refunds
4    resulting from overpayment of tax liability under Section
5    201 of this Act from the Income Tax Refund Fund only to the
6    extent that amounts collected pursuant to Section 201 of
7    this Act and transfers pursuant to this subsection (d) and
8    item (3) of subsection (c) have been deposited and
9    retained in the Fund.
10        (3) As soon as possible after the end of each fiscal
11    year, the Director shall order transferred and the State
12    Treasurer and State Comptroller shall transfer from the
13    Income Tax Refund Fund to the Personal Property Tax
14    Replacement Fund an amount, certified by the Director to
15    the Comptroller, equal to the excess of the amount
16    collected pursuant to subsections (c) and (d) of Section
17    201 of this Act deposited into the Income Tax Refund Fund
18    during the fiscal year over the amount of refunds
19    resulting from overpayment of tax liability under
20    subsections (c) and (d) of Section 201 of this Act paid
21    from the Income Tax Refund Fund during the fiscal year.
22        (4) As soon as possible after the end of each fiscal
23    year, the Director shall order transferred and the State
24    Treasurer and State Comptroller shall transfer from the
25    Personal Property Tax Replacement Fund to the Income Tax
26    Refund Fund an amount, certified by the Director to the

 

 

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

 

 

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1Income Tax Surcharge Local Government Distributive Fund. On
2July 1, 1991, and thereafter, of the amounts collected
3pursuant to subsections (a) and (b) of Section 201 of this Act,
4minus deposits into the Income Tax Refund Fund, the Department
5shall deposit 7.3% into the Education Assistance Fund in the
6State Treasury. Beginning July 1, 1991, and continuing through
7January 31, 1993, of the amounts collected pursuant to
8subsections (a) and (b) of Section 201 of the Illinois Income
9Tax Act, minus deposits into the Income Tax Refund Fund, the
10Department shall deposit 3.0% into the Income Tax Surcharge
11Local Government Distributive Fund in the State Treasury.
12Beginning February 1, 1993 and continuing through June 30,
131993, of the amounts collected pursuant to subsections (a) and
14(b) of Section 201 of the Illinois Income Tax Act, minus
15deposits into the Income Tax Refund Fund, the Department shall
16deposit 4.4% into the Income Tax Surcharge Local Government
17Distributive Fund in the State Treasury. Beginning July 1,
181993, and continuing through June 30, 1994, of the amounts
19collected under subsections (a) and (b) of Section 201 of this
20Act, minus deposits into the Income Tax Refund Fund, the
21Department shall deposit 1.475% into the Income Tax Surcharge
22Local Government Distributive Fund in the State Treasury.
23    (f) Deposits into the Fund for the Advancement of
24Education. Beginning February 1, 2015, the Department shall
25deposit the following portions of the revenue realized from
26the tax imposed upon individuals, trusts, and estates by

 

 

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1subsections (a) and (b) of Section 201 of this Act, minus
2deposits into the Income Tax Refund Fund, into the Fund for the
3Advancement of Education:
4        (1) beginning February 1, 2015, and prior to February
5    1, 2025, 1/30; and
6        (2) beginning February 1, 2025, 1/26.
7    If the rate of tax imposed by subsection (a) and (b) of
8Section 201 is reduced pursuant to Section 201.5 of this Act,
9the Department shall not make the deposits required by this
10subsection (f) on or after the effective date of the
11reduction.
12    (g) Deposits into the Commitment to Human Services Fund.
13Beginning February 1, 2015, the Department shall deposit the
14following portions of the revenue realized from the tax
15imposed upon individuals, trusts, and estates by subsections
16(a) and (b) of Section 201 of this Act, minus deposits into the
17Income Tax Refund Fund, into the Commitment to Human Services
18Fund:
19        (1) beginning February 1, 2015, and prior to February
20    1, 2025, 1/30; and
21        (2) beginning February 1, 2025, 1/26.
22    If the rate of tax imposed by subsection (a) and (b) of
23Section 201 is reduced pursuant to Section 201.5 of this Act,
24the Department shall not make the deposits required by this
25subsection (g) on or after the effective date of the
26reduction.

 

 

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1    (h) Deposits into the Tax Compliance and Administration
2Fund. Beginning on the first day of the first calendar month to
3occur on or after August 26, 2014 (the effective date of Public
4Act 98-1098), each month the Department shall pay into the Tax
5Compliance and Administration Fund, to be used, subject to
6appropriation, to fund additional auditors and compliance
7personnel at the Department, an amount equal to 1/12 of 5% of
8the cash receipts collected during the preceding fiscal year
9by the Audit Bureau of the Department from the tax imposed by
10subsections (a), (b), (c), and (d) of Section 201 of this Act,
11net of deposits into the Income Tax Refund Fund made from those
12cash receipts.
13(Source: P.A. 101-8, see Section 99 for effective date;
14101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-636, eff.
156-10-20; 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-658,
16eff. 8-27-21; revised 10-19-21.)
 
17
ARTICLE 45. MOTOR FUEL

 
18    Section 45-3. The State Finance Act is amended by changing
19Section 6z-108 as follows:
 
20    (30 ILCS 105/6z-108)
21    Sec. 6z-108. Transportation Renewal Fund.
22    (a) The Transportation Renewal Fund is created as a
23special fund in the State treasury and shall receive Motor

 

 

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1Fuel Tax revenues as directed by Sections 2a and Section 8b of
2the Motor Fuel Tax Law.
3    (b) Money in the Transportation Renewal Fund shall be used
4exclusively for transportation-related purposes as described
5in Section 11 of Article IX of the Illinois Constitution of
61970.
7(Source: P.A. 101-30, eff. 6-28-19.)
 
8    Section 45-5. The Motor Fuel Tax Law is amended by
9changing Sections 2, 8a, and 17 as follows:
 
10    (35 ILCS 505/2)  (from Ch. 120, par. 418)
11    Sec. 2. A tax is imposed on the privilege of operating
12motor vehicles upon the public highways and recreational-type
13watercraft upon the waters of this State.
14    (a) Prior to August 1, 1989, the tax is imposed at the rate
15of 13 cents per gallon on all motor fuel used in motor vehicles
16operating on the public highways and recreational type
17watercraft operating upon the waters of this State. Beginning
18on August 1, 1989 and until January 1, 1990, the rate of the
19tax imposed in this paragraph shall be 16 cents per gallon.
20Beginning January 1, 1990 and until July 1, 2019, the rate of
21tax imposed in this paragraph, including the tax on compressed
22natural gas, shall be 19 cents per gallon. Beginning July 1,
232019 and until July 1, 2020, the rate of tax imposed in this
24paragraph shall be 38 cents per gallon. Beginning July 1, 2020

 

 

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1and until July 1, 2021, the rate of tax imposed in this
2paragraph shall be 38.7 cents per gallon. Beginning July 1,
32021 and until January 1, 2023, the rate of tax imposed in this
4paragraph shall be 39.2 cents per gallon. On January 1, 2023,
5the rate of tax imposed in this paragraph shall be increased by
6an amount equal to the percentage increase, if any, in the
7Consumer Price Index for All Urban Consumers for all items
8published by the United States Department of Labor for the 12
9months ending in September of 2022. On July 1, 2023, and on
10July 1 of each subsequent year, the rate of tax imposed in this
11paragraph shall be and increased on July 1 of each subsequent
12year by an amount equal to the percentage increase, if any, in
13the Consumer Price Index for All Urban Consumers for all items
14published by the United States Department of Labor for the 12
15months ending in March of the year in which the increase takes
16place each year. The rate shall be rounded to the nearest
17one-tenth of one cent.
18    (a-5) Beginning on July 1, 2022 and through December 31,
192022, each retailer of motor fuel shall cause the following
20notice to be posted in a prominently visible place on each
21retail dispensing device that is used to dispense motor fuel
22in the State of Illinois: "As of July 1, 2022, the State of
23Illinois has suspended the inflation adjustment to the motor
24fuel tax through December 31, 2022. The price on this pump
25should reflect the suspension of the tax increase." The notice
26shall be printed in bold print on a sign that is no smaller

 

 

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1than 4 inches by 8 inches. The sign shall be clearly visible to
2customers. Any retailer who fails to post or maintain a
3required sign through December 31, 2022 is guilty of a petty
4offense for which the fine shall be $500 per day per each
5retail premises where a violation occurs.
6    (b) Until July 1, 2019, the tax on the privilege of
7operating motor vehicles which use diesel fuel, liquefied
8natural gas, or propane shall be the rate according to
9paragraph (a) plus an additional 2 1/2 cents per gallon.
10Beginning July 1, 2019, the tax on the privilege of operating
11motor vehicles which use diesel fuel, liquefied natural gas,
12or propane shall be the rate according to subsection (a) plus
13an additional 7.5 cents per gallon. "Diesel fuel" is defined
14as any product intended for use or offered for sale as a fuel
15for engines in which the fuel is injected into the combustion
16chamber and ignited by pressure without electric spark.
17    (c) A tax is imposed upon the privilege of engaging in the
18business of selling motor fuel as a retailer or reseller on all
19motor fuel used in motor vehicles operating on the public
20highways and recreational type watercraft operating upon the
21waters of this State: (1) at the rate of 3 cents per gallon on
22motor fuel owned or possessed by such retailer or reseller at
2312:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents
24per gallon on motor fuel owned or possessed by such retailer or
25reseller at 12:01 A.M. on January 1, 1990.
26    Retailers and resellers who are subject to this additional

 

 

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1tax shall be required to inventory such motor fuel and pay this
2additional tax in a manner prescribed by the Department of
3Revenue.
4    The tax imposed in this paragraph (c) shall be in addition
5to all other taxes imposed by the State of Illinois or any unit
6of local government in this State.
7    (d) Except as provided in Section 2a, the collection of a
8tax based on gallonage of gasoline used for the propulsion of
9any aircraft is prohibited on and after October 1, 1979, and
10the collection of a tax based on gallonage of special fuel used
11for the propulsion of any aircraft is prohibited on and after
12December 1, 2019.
13    (e) The collection of a tax, based on gallonage of all
14products commonly or commercially known or sold as 1-K
15kerosene, regardless of its classification or uses, is
16prohibited (i) on and after July 1, 1992 until December 31,
171999, except when the 1-K kerosene is either: (1) delivered
18into bulk storage facilities of a bulk user, or (2) delivered
19directly into the fuel supply tanks of motor vehicles and (ii)
20on and after January 1, 2000. Beginning on January 1, 2000, the
21collection of a tax, based on gallonage of all products
22commonly or commercially known or sold as 1-K kerosene,
23regardless of its classification or uses, is prohibited except
24when the 1-K kerosene is delivered directly into a storage
25tank that is located at a facility that has withdrawal
26facilities that are readily accessible to and are capable of

 

 

10200SB0157ham002- 149 -LRB102 10128 HLH 39050 a

1dispensing 1-K kerosene into the fuel supply tanks of motor
2vehicles. For purposes of this subsection (e), a facility is
3considered to have withdrawal facilities that are not "readily
4accessible to and capable of dispensing 1-K kerosene into the
5fuel supply tanks of motor vehicles" only if the 1-K kerosene
6is delivered from: (i) a dispenser hose that is short enough so
7that it will not reach the fuel supply tank of a motor vehicle
8or (ii) a dispenser that is enclosed by a fence or other
9physical barrier so that a vehicle cannot pull alongside the
10dispenser to permit fueling.
11    Any person who sells or uses 1-K kerosene for use in motor
12vehicles upon which the tax imposed by this Law has not been
13paid shall be liable for any tax due on the sales or use of 1-K
14kerosene.
15(Source: P.A. 100-9, eff. 7-1-17; 101-10, eff. 6-5-19; 101-32,
16eff. 6-28-19; 101-604, eff. 12-13-19.)
 
17    (35 ILCS 505/8a)  (from Ch. 120, par. 424a)
18    Sec. 8a. Deposit of proceeds. Until July 1, 2022 and
19beginning again on July 1, 2023, all All money received by the
20Department under Section 2a of this Act, except money received
21from taxes on aviation fuel sold or used on or after December
221, 2019 and through December 31, 2020, shall be deposited in
23the Underground Storage Tank Fund created by Section 57.11 of
24the Environmental Protection Act, as now or hereafter amended.
25All money received by the Department under Section 2a of this

 

 

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1Act for aviation fuel sold or used on or after December 1,
22019, shall be deposited into the State Aviation Program Fund.
3This exception for aviation fuel only applies for so long as
4the revenue use requirements of 49 U.S.C. 47107(b) and 49
5U.S.C. 47133 are binding on the State. For purposes of this
6Section, "aviation fuel" means jet fuel and aviation gasoline.
7Beginning on July 1, 2022 and through June 30, 2023, all money
8received by the Department under Section 2a shall be deposited
9in the Transportation Renewal Fund.
10(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
 
11    (35 ILCS 505/17)  (from Ch. 120, par. 433)
12    Sec. 17. It is the purpose of Sections 2 and 13a of this
13Act to impose a tax upon the privilege of operating each motor
14vehicle as defined in this Act upon the public highways and the
15waters of this State, such tax to be based upon the consumption
16of motor fuel in such motor vehicle, so far as the same may be
17done, under the Constitution and statutes of the United
18States, and the Constitution of the State of Illinois. It is
19the purpose of Section 2a of this Act to impose a tax upon the
20privilege of importing or receiving in this State fuel for
21sale or use, such tax to be used to fund the Underground
22Storage Tank Fund or the Transportation Renewal Fund. If any
23of the provisions of this Act include transactions which are
24not taxable or are in any other respect unconstitutional, it
25is the intent of the General Assembly that, so far as possible,

 

 

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1the remaining provisions of the Act be given effect.
2(Source: P.A. 86-125.)
 
3    Section 45-10. The Environmental Impact Fee Law is amended
4by changing Section 320 as follows:
 
5    (415 ILCS 125/320)
6    (Section scheduled to be repealed on January 1, 2025)
7    Sec. 320. Deposit of fee receipts. Except as otherwise
8provided in this paragraph, all money received by the
9Department under this Law shall be deposited in the
10Underground Storage Tank Fund created by Section 57.11 of the
11Environmental Protection Act. All money received for aviation
12fuel by the Department under this Law on or after December 1,
132019 and ending with returns due on January 20, 2021, shall be
14immediately paid over by the Department to the State Aviation
15Program Fund. The Department shall only pay such moneys into
16the State Aviation Program Fund under this Act for so long as
17the revenue use requirements of 49 U.S.C. 47107(b) and 49
18U.S.C. 47133 are binding on the State. For purposes of this
19Section, "aviation fuel" means jet fuel and aviation gasoline.
20Beginning July 1, 2022 and through June 30, 2023, all money
21received by the Department under this Law shall be deposited
22into the Transportation Renewal Fund.
23(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
 

 

 

10200SB0157ham002- 152 -LRB102 10128 HLH 39050 a

1
ARTICLE 50. ELECTRIC VEHICLES

 
2    Section 50-5. The Reimagining Electric Vehicles in
3Illinois Act is amended by changing Sections 10 and 20 as
4follows:
 
5    (20 ILCS 686/10)
6    Sec. 10. Definitions. As used in this Act:
7    "Advanced battery" means a battery that consists of a
8battery cell that can be integrated into a module, pack, or
9system to be used in energy storage applications, including a
10battery used in an electric vehicle or the electric grid.
11    "Advanced battery component" means a component of an
12advanced battery, including materials, enhancements,
13enclosures, anodes, cathodes, electrolytes, cells, and other
14associated technologies that comprise an advanced battery.
15    "Agreement" means the agreement between a taxpayer and the
16Department under the provisions of Section 45 of this Act.
17    "Applicant" means a taxpayer that (i) operates a business
18in Illinois or is planning to locate a business within the
19State of Illinois and (ii) is engaged in interstate or
20intrastate commerce for the purpose of manufacturing electric
21vehicles, electric vehicle component parts, or electric
22vehicle power supply equipment. "Applicant" does not include a
23taxpayer who closes or substantially reduces by more than 50%
24operations at one location in the State and relocates

 

 

10200SB0157ham002- 153 -LRB102 10128 HLH 39050 a

1substantially the same operation to another location in the
2State. This does not prohibit a Taxpayer from expanding its
3operations at another location in the State. This also does
4not prohibit a Taxpayer from moving its operations from one
5location in the State to another location in the State for the
6purpose of expanding the operation, provided that the
7Department determines that expansion cannot reasonably be
8accommodated within the municipality or county in which the
9business is located, or, in the case of a business located in
10an incorporated area of the county, within the county in which
11the business is located, after conferring with the chief
12elected official of the municipality or county and taking into
13consideration any evidence offered by the municipality or
14county regarding the ability to accommodate expansion within
15the municipality or county.
16    "Battery raw materials" means the raw and processed form
17of a mineral, metal, chemical, or other material used in an
18advanced battery component.
19    "Battery raw materials refining service provider" means a
20business that operates a facility that filters, sifts, and
21treats battery raw materials for use in an advanced battery.
22    "Battery recycling and reuse manufacturer" means a
23manufacturer that is primarily engaged in the recovery,
24retrieval, processing, recycling, or recirculating of battery
25raw materials for new use in electric vehicle batteries.
26    "Capital improvements" means the purchase, renovation,

 

 

10200SB0157ham002- 154 -LRB102 10128 HLH 39050 a

1rehabilitation, or construction of permanent tangible land,
2buildings, structures, equipment, and furnishings in an
3approved project sited in Illinois and expenditures for goods
4or services that are normally capitalized, including
5organizational costs and research and development costs
6incurred in Illinois. For land, buildings, structures, and
7equipment that are leased, the lease must equal or exceed the
8term of the agreement, and the cost of the property shall be
9determined from the present value, using the corporate
10interest rate prevailing at the time of the application, of
11the lease payments.
12    "Credit" means either a "REV Illinois Credit" or a "REV
13Construction Jobs Credit" agreed to between the Department and
14applicant under this Act.
15    "Department" means the Department of Commerce and Economic
16Opportunity.
17    "Director" means the Director of Commerce and Economic
18Opportunity.
19    "Electric vehicle" means a vehicle that is exclusively
20powered by and refueled by electricity, including electricity
21generated through a hydrogen fuel cells or solar technology
22must be plugged in to charge or utilize a pre-charged battery,
23and is permitted to operate on public roadways. "Electric
24vehicle" does not include hybrid electric vehicles, electric
25bicycles, or and extended-range electric vehicles that are
26also equipped with conventional fueled propulsion or auxiliary

 

 

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1engines.
2    "Electric vehicle manufacturer" means a new or existing
3manufacturer that is primarily focused on reequipping,
4expanding, or establishing a manufacturing facility in
5Illinois that produces electric vehicles as defined in this
6Section.
7    "Electric vehicle component parts manufacturer" means a
8new or existing manufacturer that is primarily focused on
9reequipping, expanding, or establishing a manufacturing
10facility in Illinois that produces advanced battery components
11or key components that directly support the electric functions
12of electric vehicles, as defined by this Section.
13    "Electric vehicle power supply equipment" means the
14equipment used specifically for the purpose of delivering
15electricity to an electric vehicle, including hydrogen fuel
16cells or solar refueling infrastructure.
17    "Electric vehicle power supply manufacturer" means a new
18or existing manufacturer that is focused on reequipping,
19expanding, or establishing a manufacturing facility in
20Illinois that produces electric vehicle power supply equipment
21used for the purpose of delivering electricity to an electric
22vehicle, including hydrogen fuel cell or solar refueling
23infrastructure.
24    "Energy Transition Area" means a county with less than
25100,000 people or a municipality that contains one or more of
26the following:

 

 

10200SB0157ham002- 156 -LRB102 10128 HLH 39050 a

1        (1) a fossil fuel plant that was retired from service
2    or has significant reduced service within 6 years before
3    the time of the application or will be retired or have
4    service significantly reduced within 6 years following the
5    time of the application; or
6        (2) a coal mine that was closed or had operations
7    significantly reduced within 6 years before the time of
8    the application or is anticipated to be closed or have
9    operations significantly reduced within 6 years following
10    the time of the application.
11    "Full-time employee" means an individual who is employed
12for consideration for at least 35 hours each week or who
13renders any other standard of service generally accepted by
14industry custom or practice as full-time employment. An
15individual for whom a W-2 is issued by a Professional Employer
16Organization (PEO) is a full-time employee if employed in the
17service of the applicant for consideration for at least 35
18hours each week.
19    "Incremental income tax" means the total amount withheld
20during the taxable year from the compensation of new employees
21and, if applicable, retained employees under Article 7 of the
22Illinois Income Tax Act arising from employment at a project
23that is the subject of an agreement.
24    "Institution of higher education" or "institution" means
25any accredited public or private university, college,
26community college, business, technical, or vocational school,

 

 

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1or other accredited educational institution offering degrees
2and instruction beyond the secondary school level.
3    "Minority person" means a minority person as defined in
4the Business Enterprise for Minorities, Women, and Persons
5with Disabilities Act.
6    "New employee" means a newly-hired full-time employee
7employed to work at the project site and whose work is directly
8related to the project.
9    "Noncompliance date" means, in the case of a taxpayer that
10is not complying with the requirements of the agreement or the
11provisions of this Act, the day following the last date upon
12which the taxpayer was in compliance with the requirements of
13the agreement and the provisions of this Act, as determined by
14the Director, pursuant to Section 70.
15    "Pass-through entity" means an entity that is exempt from
16the tax under subsection (b) or (c) of Section 205 of the
17Illinois Income Tax Act.
18    "Placed in service" means the state or condition of
19readiness, availability for a specifically assigned function,
20and the facility is constructed and ready to conduct its
21facility operations to manufacture goods.
22    "Professional employer organization" (PEO) means an
23employee leasing company, as defined in Section 206.1 of the
24Illinois Unemployment Insurance Act.
25    "Program" means the Reimagining Electric Vehicles in
26Illinois Program (the REV Illinois Program) established in

 

 

10200SB0157ham002- 158 -LRB102 10128 HLH 39050 a

1this Act.
2    "Project" or "REV Illinois Project" means a for-profit
3economic development activity for the manufacture of electric
4vehicles, electric vehicle component parts, or electric
5vehicle power supply equipment which is designated by the
6Department as a REV Illinois Project and is the subject of an
7agreement.
8    "Recycling facility" means a location at which the
9taxpayer disposes of batteries and other component parts in
10manufacturing of electric vehicles, electric vehicle component
11parts, or electric vehicle power supply equipment.
12    "Related member" means a person that, with respect to the
13taxpayer during any portion of the taxable year, is any one of
14the following:
15        (1) An individual stockholder, if the stockholder and
16    the members of the stockholder's family (as defined in
17    Section 318 of the Internal Revenue Code) own directly,
18    indirectly, beneficially, or constructively, in the
19    aggregate, at least 50% of the value of the taxpayer's
20    outstanding stock.
21        (2) A partnership, estate, trust and any partner or
22    beneficiary, if the partnership, estate, or trust, and its
23    partners or beneficiaries own directly, indirectly,
24    beneficially, or constructively, in the aggregate, at
25    least 50% of the profits, capital, stock, or value of the
26    taxpayer.

 

 

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1        (3) A corporation, and any party related to the
2    corporation in a manner that would require an attribution
3    of stock from the corporation under the attribution rules
4    of Section 318 of the Internal Revenue Code, if the
5    Taxpayer owns directly, indirectly, beneficially, or
6    constructively at least 50% of the value of the
7    corporation's outstanding stock.
8        (4) A corporation and any party related to that
9    corporation in a manner that would require an attribution
10    of stock from the corporation to the party or from the
11    party to the corporation under the attribution rules of
12    Section 318 of the Internal Revenue Code, if the
13    corporation and all such related parties own in the
14    aggregate at least 50% of the profits, capital, stock, or
15    value of the taxpayer.
16        (5) A person to or from whom there is an attribution of
17    stock ownership in accordance with Section 1563(e) of the
18    Internal Revenue Code, except, for purposes of determining
19    whether a person is a related member under this paragraph,
20    20% shall be substituted for 5% wherever 5% appears in
21    Section 1563(e) of the Internal Revenue Code.
22    "Retained employee" means a full-time employee employed by
23the taxpayer prior to the term of the Agreement who continues
24to be employed during the term of the agreement whose job
25duties are directly and substantially related to the project.
26For purposes of this definition, "directly and substantially

 

 

10200SB0157ham002- 160 -LRB102 10128 HLH 39050 a

1related to the project" means at least two-thirds of the
2employee's job duties must be directly related to the project
3and the employee must devote at least two-thirds of his or her
4time to the project. The term "retained employee" does not
5include any individual who has a direct or an indirect
6ownership interest of at least 5% in the profits, equity,
7capital, or value of the taxpayer or a child, grandchild,
8parent, or spouse, other than a spouse who is legally
9separated from the individual, of any individual who has a
10direct or indirect ownership of at least 5% in the profits,
11equity, capital, or value of the taxpayer.
12    "REV Illinois credit" means a credit agreed to between the
13Department and the applicant under this Act that is based on
14the incremental income tax attributable to new employees and,
15if applicable, retained employees, and on training costs for
16such employees at the applicant's project.
17    "REV construction jobs credit" means a credit agreed to
18between the Department and the applicant under this Act that
19is based on the incremental income tax attributable to
20construction wages paid in connection with construction of the
21project facilities.
22    "Statewide baseline" means the total number of full-time
23employees of the applicant and any related member employed by
24such entities at the time of application for incentives under
25this Act.
26    "Taxpayer" means an individual, corporation, partnership,

 

 

10200SB0157ham002- 161 -LRB102 10128 HLH 39050 a

1or other entity that has a legal obligation to pay Illinois
2income taxes and file an Illinois income tax return.
3    "Training costs" means costs incurred to upgrade the
4technological skills of full-time employees in Illinois and
5includes: curriculum development; training materials
6(including scrap product costs); trainee domestic travel
7expenses; instructor costs (including wages, fringe benefits,
8tuition and domestic travel expenses); rent, purchase or lease
9of training equipment; and other usual and customary training
10costs. "Training costs" do not include costs associated with
11travel outside the United States (unless the Taxpayer receives
12prior written approval for the travel by the Director based on
13a showing of substantial need or other proof the training is
14not reasonably available within the United States), wages and
15fringe benefits of employees during periods of training, or
16administrative cost related to full-time employees of the
17taxpayer.
18    "Underserved area" means any geographic areas as defined
19in Section 5-5 of the Economic Development for a Growing
20Economy Tax Credit Act.
21(Source: P.A. 102-669, eff. 11-16-21.)
 
22    (20 ILCS 686/20)
23    Sec. 20. REV Illinois Program; project applications.
24    (a) The Reimagining Electric Vehicles in Illinois (REV
25Illinois) Program is hereby established and shall be

 

 

10200SB0157ham002- 162 -LRB102 10128 HLH 39050 a

1administered by the Department. The Program will provide
2financial incentives to any one or more of the following: (1)
3eligible manufacturers of electric vehicles, electric vehicle
4component parts, and electric vehicle power supply equipment;
5(2) battery recycling and reuse manufacturers; or (3) battery
6raw materials refining service providers.
7    (b) Any taxpayer planning a project to be located in
8Illinois may request consideration for designation of its
9project as a REV Illinois Project, by formal written letter of
10request or by formal application to the Department, in which
11the applicant states its intent to make at least a specified
12level of investment and intends to hire a specified number of
13full-time employees at a designated location in Illinois. As
14circumstances require, the Department shall require a formal
15application from an applicant and a formal letter of request
16for assistance.
17    (c) In order to qualify for credits under the REV Illinois
18Program, an Applicant must:
19        (1) for an electric vehicle manufacturer:
20            (A) make an investment of at least $1,500,000,000
21        in capital improvements at the project site;
22            (B) to be placed in service within the State
23        within a 60-month period after approval of the
24        application; and
25            (C) create at least 500 new full-time employee
26        jobs; or

 

 

10200SB0157ham002- 163 -LRB102 10128 HLH 39050 a

1        (2) for an electric vehicle component parts
2    manufacturer:
3            (A) make an investment of at least $300,000,000 in
4        capital improvements at the project site;
5            (B) manufacture one or more parts that are
6        primarily used for electric vehicle manufacturing;
7            (C) to be placed in service within the State
8        within a 60-month period after approval of the
9        application; and
10            (D) create at least 150 new full-time employee
11        jobs; or
12        (3) for an electric vehicle manufacturer, an electric
13    vehicle power supply equipment manufacturer Manufacturer,
14    an or electric vehicle component part manufacturer that
15    does not qualify quality under paragraph (2) above, a
16    battery recycling and reuse manufacturer, or a battery raw
17    materials refining service provider:
18            (A) make an investment of at least $20,000,000 in
19        capital improvements at the project site;
20            (B) for electric vehicle component part
21        manufacturers, manufacture one or more parts that are
22        primarily used for electric vehicle manufacturing;
23            (C) to be placed in service within the State
24        within a 48-month period after approval of the
25        application; and
26            (D) create at least 50 new full-time employee

 

 

10200SB0157ham002- 164 -LRB102 10128 HLH 39050 a

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

 

 

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1this amendatory Act of the 102nd General Assembly, for any
2applicant creating the full-time employee jobs noted in
3subsection (c), those jobs must have a compensation equal to
4or greater than 120% of the average wage paid to full-time
5employees in a similar position within an occupational group
6in the county where the project is located, as determined by
7the U.S. Bureau of Labor Statistics.
8    (e) For any applicant, within 24 months after being placed
9in service, it must certify to the Department that it is carbon
10neutral or has attained certification under one of more of the
11following green building standards:
12        (1) BREEAM for New Construction or BREEAM In-Use;
13        (2) ENERGY STAR;
14        (3) Envision;
15        (4) ISO 50001 - energy management;
16        (5) LEED for Building Design and Construction or LEED
17    for Building Operations and Maintenance;
18        (6) Green Globes for New Construction or Green Globes
19    for Existing Buildings; or
20        (7) UL 3223.
21    (f) Each applicant must outline its hiring plan and
22commitment to recruit and hire full-time employee positions at
23the project site. The hiring plan may include a partnership
24with an institution of higher education to provide
25internships, including, but not limited to, internships
26supported by the Clean Jobs Workforce Network Program, or

 

 

10200SB0157ham002- 166 -LRB102 10128 HLH 39050 a

1full-time permanent employment for students at the project
2site. Additionally, the applicant may create or utilize
3participants from apprenticeship programs that are approved by
4and registered with the United States Department of Labor's
5Bureau of Apprenticeship and Training. The Applicant may apply
6for apprenticeship education expense credits in accordance
7with the provisions set forth in 14 Ill. Admin. Code 522. Each
8applicant is required to report annually, on or before April
915, on the diversity of its workforce in accordance with
10Section 50 of this Act. For existing facilities of applicants
11under paragraph (3) of subsection (b) above, if the taxpayer
12expects a reduction in force due to its transition to
13manufacturing electric vehicle, electric vehicle component
14parts, or electric vehicle power supply equipment, the plan
15submitted under this Section must outline the taxpayer's plan
16to assist with retraining its workforce aligned with the
17taxpayer's adoption of new technologies and anticipated
18efforts to retrain employees through employment opportunities
19within the taxpayer's workforce.
20    (g) Each applicant must demonstrate a contractual or other
21relationship with a recycling facility, or demonstrate its own
22recycling capabilities, at the time of application and report
23annually a continuing contractual or other relationship with a
24recycling facility and the percentage of batteries used in
25electric vehicles recycled throughout the term of the
26agreement.

 

 

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1    (h) A taxpayer may not enter into more than one agreement
2under this Act with respect to a single address or location for
3the same period of time. Also, a taxpayer may not enter into an
4agreement under this Act with respect to a single address or
5location for the same period of time for which the taxpayer
6currently holds an active agreement under the Economic
7Development for a Growing Economy Tax Credit Act. This
8provision does not preclude the applicant from entering into
9an additional agreement after the expiration or voluntary
10termination of an earlier agreement under this Act or under
11the Economic Development for a Growing Economy Tax Credit Act
12to the extent that the taxpayer's application otherwise
13satisfies the terms and conditions of this Act and is approved
14by the Department. An applicant with an existing agreement
15under the Economic Development for a Growing Economy Tax
16Credit Act may submit an application for an agreement under
17this Act after it terminates any existing agreement under the
18Economic Development for a Growing Economy Tax Credit Act with
19respect to the same address or location.
20(Source: P.A. 102-669, eff. 11-16-21.)
 
21
ARTICLE 55. EARNED INCOME TAX CREDIT

 
22    Section 55-5. The Illinois Income Tax Act is amended by
23changing Section 212 as follows:
 

 

 

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1    (35 ILCS 5/212)
2    Sec. 212. Earned income tax credit.
3    (a) With respect to the federal earned income tax credit
4allowed for the taxable year under Section 32 of the federal
5Internal Revenue Code, 26 U.S.C. 32, each individual taxpayer
6is entitled to a credit against the tax imposed by subsections
7(a) and (b) of Section 201 in an amount equal to (i) 5% of the
8federal tax credit for each taxable year beginning on or after
9January 1, 2000 and ending prior to December 31, 2012, (ii)
107.5% of the federal tax credit for each taxable year beginning
11on or after January 1, 2012 and ending prior to December 31,
122013, (iii) 10% of the federal tax credit for each taxable year
13beginning on or after January 1, 2013 and beginning prior to
14January 1, 2017, (iv) 14% of the federal tax credit for each
15taxable year beginning on or after January 1, 2017 and
16beginning prior to January 1, 2018, and (v) 18% of the federal
17tax credit for each taxable year beginning on or after January
181, 2018 and beginning prior to January 1, 2023, and (vi) 20% of
19the federal tax credit for each taxable year beginning on or
20after January 1, 2023.
21    For a non-resident or part-year resident, the amount of
22the credit under this Section shall be in proportion to the
23amount of income attributable to this State.
24    (b) For taxable years beginning before January 1, 2003, in
25no event shall a credit under this Section reduce the
26taxpayer's liability to less than zero. For each taxable year

 

 

10200SB0157ham002- 169 -LRB102 10128 HLH 39050 a

1beginning on or after January 1, 2003, if the amount of the
2credit exceeds the income tax liability for the applicable tax
3year, then the excess credit shall be refunded to the
4taxpayer. The amount of a refund shall not be included in the
5taxpayer's income or resources for the purposes of determining
6eligibility or benefit level in any means-tested benefit
7program administered by a governmental entity unless required
8by federal law.
9    (b-5) For taxable years beginning on or after January 1,
102023, each individual taxpayer who has attained the age of 18
11during the taxable year but has not yet attained the age of 25
12is entitled to the credit under paragraph (a) based on the
13federal tax credit for which the taxpayer would have been
14eligible without regard to any age requirements that would
15otherwise apply to individuals without a qualifying child in
16Section 32(c)(1)(A)(ii) of the federal Internal Revenue Code.
17    (b-10) For taxable years beginning on or after January 1,
182023, each individual taxpayer who has attained the age of 65
19or older during the taxable year is entitled to the credit
20under paragraph (a) based on the federal tax credit for which
21the taxpayer would have been eligible without regard to any
22age requirements that would otherwise apply to individuals
23without a qualifying child in Section 32(c)(1)(A)(ii) of the
24federal Internal Revenue Code.
25    (b-15) For taxable years beginning on or after January 1,
262023, each individual taxpayer filing a return using an

 

 

10200SB0157ham002- 170 -LRB102 10128 HLH 39050 a

1individual taxpayer identification number (ITIN) as prescribed
2under Section 6109 of the Internal Revenue Code, other than a
3Social Security number issued pursuant to Section 205(c)(2)(A)
4of the Social Security Act, is entitled to the credit under
5paragraph (a) based on the federal tax credit for which they
6would have been eligible without applying the restrictions
7regarding social security numbers in Section 32(m) of the
8federal Internal Revenue Code.
9    (c) This Section is exempt from the provisions of Section
10250.
11(Source: P.A. 100-22, eff. 7-6-17.)
 
12
ARTICLE 60. GROCERIES

 
13    Section 60-5. The State Finance Act is amended by adding
14Section 5.971 as follows:
 
15    (30 ILCS 105/5.971 new)
16    Sec. 5.971. The Grocery Tax Replacement Fund. This Section
17is repealed January 1, 2024.
 
18    Section 60-10. The State Finance Act is amended by
19changing Sections 6z-17 and 6z-18 and by adding Section 6z-130
20as follows:
 
21    (30 ILCS 105/6z-17)  (from Ch. 127, par. 142z-17)

 

 

10200SB0157ham002- 171 -LRB102 10128 HLH 39050 a

1    Sec. 6z-17. State and Local Sales Tax Reform Fund.
2    (a) After deducting the amount transferred to the Tax
3Compliance and Administration Fund under subsection (b), of
4the money paid into the State and Local Sales Tax Reform Fund:
5(i) subject to appropriation to the Department of Revenue,
6Municipalities having 1,000,000 or more inhabitants shall
7receive 20% and may expend such amount to fund and establish a
8program for developing and coordinating public and private
9resources targeted to meet the affordable housing needs of
10low-income and very low-income households within such
11municipality, (ii) 10% shall be transferred into the Regional
12Transportation Authority Occupation and Use Tax Replacement
13Fund, a special fund in the State treasury which is hereby
14created, (iii) until July 1, 2013, subject to appropriation to
15the Department of Transportation, the Madison County Mass
16Transit District shall receive .6%, and beginning on July 1,
172013, subject to appropriation to the Department of Revenue,
180.6% shall be distributed each month out of the Fund to the
19Madison County Mass Transit District, (iv) the following
20amounts, plus any cumulative deficiency in such transfers for
21prior months, shall be transferred monthly into the Build
22Illinois Fund and credited to the Build Illinois Bond Account
23therein:
24Fiscal YearAmount
251990$2,700,000
2619911,850,000

 

 

10200SB0157ham002- 172 -LRB102 10128 HLH 39050 a

119922,750,000
219932,950,000
3    From Fiscal Year 1994 through Fiscal Year 2025 the
4transfer shall total $3,150,000 monthly, plus any cumulative
5deficiency in such transfers for prior months, and (v) the
6remainder of the money paid into the State and Local Sales Tax
7Reform Fund shall be transferred into the Local Government
8Distributive Fund and, except for municipalities with
91,000,000 or more inhabitants which shall receive no portion
10of such remainder, shall be distributed, subject to
11appropriation, in the manner provided by Section 2 of "An Act
12in relation to State revenue sharing with local government
13entities", approved July 31, 1969, as now or hereafter
14amended. Municipalities with more than 50,000 inhabitants
15according to the 1980 U.S. Census and located within the Metro
16East Mass Transit District receiving funds pursuant to
17provision (v) of this paragraph may expend such amounts to
18fund and establish a program for developing and coordinating
19public and private resources targeted to meet the affordable
20housing needs of low-income and very low-income households
21within such municipality.
22    Moneys transferred from the Grocery Tax Replacement Fund
23to the State and Local Sales Tax Reform Fund under Section
246z-130 shall be treated under this Section in the same manner
25as if they had been remitted with the return on which they were
26reported.

 

 

10200SB0157ham002- 173 -LRB102 10128 HLH 39050 a

1    (b) Beginning on the first day of the first calendar month
2to occur on or after the effective date of this amendatory Act
3of the 98th General Assembly, each month the Department of
4Revenue shall certify to the State Comptroller and the State
5Treasurer, and the State Comptroller shall order transferred
6and the State Treasurer shall transfer from the State and
7Local Sales Tax Reform Fund to the Tax Compliance and
8Administration Fund, an amount equal to 1/12 of 5% of 20% of
9the cash receipts collected during the preceding fiscal year
10by the Audit Bureau of the Department of Revenue under the Use
11Tax Act, the Service Use Tax Act, the Service Occupation Tax
12Act, the Retailers' Occupation Tax Act, and associated local
13occupation and use taxes administered by the Department. The
14amount distributed under subsection (a) each month shall first
15be reduced by the amount transferred to the Tax Compliance and
16Administration Fund under this subsection (b). Moneys
17transferred to the Tax Compliance and Administration Fund
18under this subsection (b) shall be used, subject to
19appropriation, to fund additional auditors and compliance
20personnel at the Department of Revenue.
21(Source: P.A. 98-44, eff. 6-28-13; 98-1098, eff. 8-26-14.)
 
22    (30 ILCS 105/6z-18)  (from Ch. 127, par. 142z-18)
23    Sec. 6z-18. Local Government Tax Fund. A portion of the
24money paid into the Local Government Tax Fund from sales of
25tangible personal property taxed at the 1% rate under the

 

 

10200SB0157ham002- 174 -LRB102 10128 HLH 39050 a

1Retailers' Occupation Tax Act and the Service Occupation Tax
2Act, which occurred in municipalities, shall be distributed to
3each municipality based upon the sales which occurred in that
4municipality. The remainder shall be distributed to each
5county based upon the sales which occurred in the
6unincorporated area of that county.
7    Moneys transferred from the Grocery Tax Replacement Fund
8to the Local Government Tax Fund under Section 6z-130 shall be
9treated under this Section in the same manner as if they had
10been remitted with the return on which they were reported.
11    A portion of the money paid into the Local Government Tax
12Fund from the 6.25% general use tax rate on the selling price
13of tangible personal property which is purchased outside
14Illinois at retail from a retailer and which is titled or
15registered by any agency of this State's government shall be
16distributed to municipalities as provided in this paragraph.
17Each municipality shall receive the amount attributable to
18sales for which Illinois addresses for titling or registration
19purposes are given as being in such municipality. The
20remainder of the money paid into the Local Government Tax Fund
21from such sales shall be distributed to counties. Each county
22shall receive the amount attributable to sales for which
23Illinois addresses for titling or registration purposes are
24given as being located in the unincorporated area of such
25county.
26    A portion of the money paid into the Local Government Tax

 

 

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1Fund from the 6.25% general rate (and, beginning July 1, 2000
2and through December 31, 2000, the 1.25% rate on motor fuel and
3gasohol, and beginning on August 6, 2010 through August 15,
42010, the 1.25% rate on sales tax holiday items) on sales
5subject to taxation under the Retailers' Occupation Tax Act
6and the Service Occupation Tax Act, which occurred in
7municipalities, shall be distributed to each municipality,
8based upon the sales which occurred in that municipality. The
9remainder shall be distributed to each county, based upon the
10sales which occurred in the unincorporated area of such
11county.
12    For the purpose of determining allocation to the local
13government unit, a retail sale by a producer of coal or other
14mineral mined in Illinois is a sale at retail at the place
15where the coal or other mineral mined in Illinois is extracted
16from the earth. This paragraph does not apply to coal or other
17mineral when it is delivered or shipped by the seller to the
18purchaser at a point outside Illinois so that the sale is
19exempt under the United States Constitution as a sale in
20interstate or foreign commerce.
21    Whenever the Department determines that a refund of money
22paid into the Local Government Tax Fund should be made to a
23claimant instead of issuing a credit memorandum, the
24Department shall notify the State Comptroller, who shall cause
25the order to be drawn for the amount specified, and to the
26person named, in such notification from the Department. Such

 

 

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1refund shall be paid by the State Treasurer out of the Local
2Government Tax Fund.
3    As soon as possible after the first day of each month,
4beginning January 1, 2011, upon certification of the
5Department of Revenue, the Comptroller shall order
6transferred, and the Treasurer shall transfer, to the STAR
7Bonds Revenue Fund the local sales tax increment, as defined
8in the Innovation Development and Economy Act, collected
9during the second preceding calendar month for sales within a
10STAR bond district and deposited into the Local Government Tax
11Fund, less 3% of that amount, which shall be transferred into
12the Tax Compliance and Administration Fund and shall be used
13by the Department, subject to appropriation, to cover the
14costs of the Department in administering the Innovation
15Development and Economy Act.
16    After the monthly transfer to the STAR Bonds Revenue Fund,
17on or before the 25th day of each calendar month, the
18Department shall prepare and certify to the Comptroller the
19disbursement of stated sums of money to named municipalities
20and counties, the municipalities and counties to be those
21entitled to distribution of taxes or penalties paid to the
22Department during the second preceding calendar month. The
23amount to be paid to each municipality or county shall be the
24amount (not including credit memoranda) collected during the
25second preceding calendar month by the Department and paid
26into the Local Government Tax Fund, plus an amount the

 

 

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1Department determines is necessary to offset any amounts which
2were erroneously paid to a different taxing body, and not
3including an amount equal to the amount of refunds made during
4the second preceding calendar month by the Department, and not
5including any amount which the Department determines is
6necessary to offset any amounts which are payable to a
7different taxing body but were erroneously paid to the
8municipality or county, and not including any amounts that are
9transferred to the STAR Bonds Revenue Fund. Within 10 days
10after receipt, by the Comptroller, of the disbursement
11certification to the municipalities and counties, provided for
12in this Section to be given to the Comptroller by the
13Department, the Comptroller shall cause the orders to be drawn
14for the respective amounts in accordance with the directions
15contained in such certification.
16    When certifying the amount of monthly disbursement to a
17municipality or county under this Section, the Department
18shall increase or decrease that amount by an amount necessary
19to offset any misallocation of previous disbursements. The
20offset amount shall be the amount erroneously disbursed within
21the 6 months preceding the time a misallocation is discovered.
22    The provisions directing the distributions from the
23special fund in the State Treasury provided for in this
24Section shall constitute an irrevocable and continuing
25appropriation of all amounts as provided herein. The State
26Treasurer and State Comptroller are hereby authorized to make

 

 

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1distributions as provided in this Section.
2    In construing any development, redevelopment, annexation,
3preannexation or other lawful agreement in effect prior to
4September 1, 1990, which describes or refers to receipts from
5a county or municipal retailers' occupation tax, use tax or
6service occupation tax which now cannot be imposed, such
7description or reference shall be deemed to include the
8replacement revenue for such abolished taxes, distributed from
9the Local Government Tax Fund.
10    As soon as possible after the effective date of this
11amendatory Act of the 98th General Assembly, the State
12Comptroller shall order and the State Treasurer shall transfer
13$6,600,000 from the Local Government Tax Fund to the Illinois
14State Medical Disciplinary Fund.
15(Source: P.A. 100-1171, eff. 1-4-19.)
 
16    (30 ILCS 105/6z-130 new)
17    Sec. 6z-130. Grocery Tax Replacement Fund.
18    (a) The Grocery Tax Replacement Fund is hereby created as
19a special fund in the State Treasury.
20    (b) On the effective date of this amendatory Act of the
21102nd General Assembly, or as soon thereafter as practical,
22but no later than June 30, 2022, the State Comptroller shall
23direct and the State Treasurer shall transfer the sum of
24$325,000,000 from the General Revenue Fund to the Grocery Tax
25Replacement Fund.

 

 

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1    (c) On July 1, 2022, or as soon thereafter as practical,
2the State Comptroller shall direct and the State Treasurer
3shall transfer the sum of $75,000,000 from the General Revenue
4Fund to the Grocery Tax Replacement Fund.
5    (d) In addition to any other transfers that may be
6provided for by law, beginning on the effective date of this
7amendatory Act of the 102nd General Assembly and until
8November 30, 2023, the Director may certify additional
9transfer amounts needed beyond the amounts specified in
10subsections (b) and (c) to cover any additional amounts needed
11to equal the net revenue that, but for the reduction of the
12rate to 0% in the Use Tax Act, the Service Use Tax Act, the
13Service Occupation Tax Act, and the Retailers' Occupation Tax
14Act under this amendatory Act of the 102nd General Assembly,
15would have been realized if the items that are subject to the
16rate reduction had been taxed at the 1% rate during the period
17of the reduction. The State Comptroller shall direct and the
18State Treasurer shall transfer the amounts certified by the
19Director from the General Revenue Fund to the Grocery Tax
20Replacement Fund.
21    (e) In addition to any other transfers that may be
22provided for by law, beginning on July 1, 2022 and until
23December 1, 2023, at the direction of the Department of
24Revenue, the State Comptroller shall direct and the State
25Treasurer shall transfer from the Grocery Tax Replacement Fund
26to the State and Local Sales Tax Reform Fund any amounts needed

 

 

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1to equal the net revenue that, but for the reduction of the
2rate to 0% in the Use Tax Act and Service Use Tax Act under
3this amendatory Act of the 102nd General Assembly, would have
4been deposited into the State and Local Sales Tax Reform Fund
5if the items that are subject to the rate reduction had been
6taxed at the 1% rate during the period of the reduction.
7    (f) In addition to any other transfers that may be
8provided for by law, beginning on July 1, 2022 and until
9December 1, 2023, at the direction of the Department of
10Revenue, the State Comptroller shall direct and the State
11Treasurer shall transfer from the Grocery Tax Replacement Fund
12to the Local Government Tax Fund any amounts needed to equal
13the net revenue that, but for the reduction of the rate to 0%
14in the Service Occupation Tax Act and the Retailers'
15Occupation Tax Act under this amendatory Act of the 102nd
16General Assembly, would have been deposited into the Local
17Government Tax Fund if the items that are subject to the rate
18reduction had been taxed at the 1% rate during the period of
19the reduction.
20    (g) The State Comptroller shall direct and the State
21Treasurer shall transfer the remaining balance in the Grocery
22Tax Replacement Fund to the General Revenue Fund on December
231, 2023, or as soon thereafter as practical. Upon completion
24of the transfer, the Grocery Tax Replacement Fund is
25dissolved.
26    (h) This Section is repealed on January 1, 2024.
 

 

 

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1    Section 60-15. The Use Tax Act is amended by changing
2Sections 3-10, 3a, and 9 as follows:
 
3    (35 ILCS 105/3-10)
4    Sec. 3-10. Rate of tax. Unless otherwise provided in this
5Section, the tax imposed by this Act is at the rate of 6.25% of
6either the selling price or the fair market value, if any, of
7the tangible personal property. In all cases where property
8functionally used or consumed is the same as the property that
9was purchased at retail, then the tax is imposed on the selling
10price of the property. In all cases where property
11functionally used or consumed is a by-product or waste product
12that has been refined, manufactured, or produced from property
13purchased at retail, then the tax is imposed on the lower of
14the fair market value, if any, of the specific property so used
15in this State or on the selling price of the property purchased
16at retail. For purposes of this Section "fair market value"
17means the price at which property would change hands between a
18willing buyer and a willing seller, neither being under any
19compulsion to buy or sell and both having reasonable knowledge
20of the relevant facts. The fair market value shall be
21established by Illinois sales by the taxpayer of the same
22property as that functionally used or consumed, or if there
23are no such sales by the taxpayer, then comparable sales or
24purchases of property of like kind and character in Illinois.

 

 

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1    Beginning on July 1, 2000 and through December 31, 2000,
2with respect to motor fuel, as defined in Section 1.1 of the
3Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
4the Use Tax Act, the tax is imposed at the rate of 1.25%.
5    Beginning on August 6, 2010 through August 15, 2010, with
6respect to sales tax holiday items as defined in Section 3-6 of
7this Act, the tax is imposed at the rate of 1.25%.
8    With respect to gasohol, the tax imposed by this Act
9applies to (i) 70% of the proceeds of sales made on or after
10January 1, 1990, and before July 1, 2003, (ii) 80% of the
11proceeds of sales made on or after July 1, 2003 and on or
12before July 1, 2017, and (iii) 100% of the proceeds of sales
13made thereafter. If, at any time, however, the tax under this
14Act on sales of gasohol is imposed at the rate of 1.25%, then
15the tax imposed by this Act applies to 100% of the proceeds of
16sales of gasohol made during that time.
17    With respect to majority blended ethanol fuel, the tax
18imposed by this Act does not apply to the proceeds of sales
19made on or after July 1, 2003 and on or before December 31,
202023 but applies to 100% of the proceeds of sales made
21thereafter.
22    With respect to biodiesel blends with no less than 1% and
23no more than 10% biodiesel, the tax imposed by this Act applies
24to (i) 80% of the proceeds of sales made on or after July 1,
252003 and on or before December 31, 2018 and (ii) 100% of the
26proceeds of sales made thereafter. If, at any time, however,

 

 

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1the tax under this Act on sales of biodiesel blends with no
2less than 1% and no more than 10% biodiesel is imposed at the
3rate of 1.25%, then the tax imposed by this Act applies to 100%
4of the proceeds of sales of biodiesel blends with no less than
51% and no more than 10% biodiesel made during that time.
6    With respect to 100% biodiesel and biodiesel blends with
7more than 10% but no more than 99% biodiesel, the tax imposed
8by this Act does not apply to the proceeds of sales made on or
9after July 1, 2003 and on or before December 31, 2023 but
10applies to 100% of the proceeds of sales made thereafter.
11    Until July 1, 2022 and beginning again on July 1, 2023,
12with With respect to food for human consumption that is to be
13consumed off the premises where it is sold (other than
14alcoholic beverages, food consisting of or infused with adult
15use cannabis, soft drinks, and food that has been prepared for
16immediate consumption), the tax is imposed at the rate of 1%.
17Beginning on July 1, 2022 and until July 1, 2023, with respect
18to food for human consumption that is to be consumed off the
19premises where it is sold (other than alcoholic beverages,
20food consisting of or infused with adult use cannabis, soft
21drinks, and food that has been prepared for immediate
22consumption), the tax is imposed at the rate of 0%.
23    With respect to and prescription and nonprescription
24medicines, drugs, medical appliances, products classified as
25Class III medical devices by the United States Food and Drug
26Administration that are used for cancer treatment pursuant to

 

 

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1a prescription, as well as any accessories and components
2related to those devices, modifications to a motor vehicle for
3the purpose of rendering it usable by a person with a
4disability, and insulin, blood sugar testing materials,
5syringes, and needles used by human diabetics, the tax is
6imposed at the rate of 1%. For the purposes of this Section,
7until September 1, 2009: the term "soft drinks" means any
8complete, finished, ready-to-use, non-alcoholic drink, whether
9carbonated or not, including but not limited to soda water,
10cola, fruit juice, vegetable juice, carbonated water, and all
11other preparations commonly known as soft drinks of whatever
12kind or description that are contained in any closed or sealed
13bottle, can, carton, or container, regardless of size; but
14"soft drinks" does not include coffee, tea, non-carbonated
15water, infant formula, milk or milk products as defined in the
16Grade A Pasteurized Milk and Milk Products Act, or drinks
17containing 50% or more natural fruit or vegetable juice.
18    Notwithstanding any other provisions of this Act,
19beginning September 1, 2009, "soft drinks" means non-alcoholic
20beverages that contain natural or artificial sweeteners. "Soft
21drinks" do not include beverages that contain milk or milk
22products, soy, rice or similar milk substitutes, or greater
23than 50% of vegetable or fruit juice by volume.
24    Until August 1, 2009, and notwithstanding any other
25provisions of this Act, "food for human consumption that is to
26be consumed off the premises where it is sold" includes all

 

 

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1food sold through a vending machine, except soft drinks and
2food products that are dispensed hot from a vending machine,
3regardless of the location of the vending machine. Beginning
4August 1, 2009, and notwithstanding any other provisions of
5this Act, "food for human consumption that is to be consumed
6off the premises where it is sold" includes all food sold
7through a vending machine, except soft drinks, candy, and food
8products that are dispensed hot from a vending machine,
9regardless of the location of the vending machine.
10    Notwithstanding any other provisions of this Act,
11beginning September 1, 2009, "food for human consumption that
12is to be consumed off the premises where it is sold" does not
13include candy. For purposes of this Section, "candy" means a
14preparation of sugar, honey, or other natural or artificial
15sweeteners in combination with chocolate, fruits, nuts or
16other ingredients or flavorings in the form of bars, drops, or
17pieces. "Candy" does not include any preparation that contains
18flour or requires refrigeration.
19    Notwithstanding any other provisions of this Act,
20beginning September 1, 2009, "nonprescription medicines and
21drugs" does not include grooming and hygiene products. For
22purposes of this Section, "grooming and hygiene products"
23includes, but is not limited to, soaps and cleaning solutions,
24shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
25lotions and screens, unless those products are available by
26prescription only, regardless of whether the products meet the

 

 

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1definition of "over-the-counter-drugs". For the purposes of
2this paragraph, "over-the-counter-drug" means a drug for human
3use that contains a label that identifies the product as a drug
4as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
5label includes:
6        (A) A "Drug Facts" panel; or
7        (B) A statement of the "active ingredient(s)" with a
8    list of those ingredients contained in the compound,
9    substance or preparation.
10    Beginning on the effective date of this amendatory Act of
11the 98th General Assembly, "prescription and nonprescription
12medicines and drugs" includes medical cannabis purchased from
13a registered dispensing organization under the Compassionate
14Use of Medical Cannabis Program Act.
15    As used in this Section, "adult use cannabis" means
16cannabis subject to tax under the Cannabis Cultivation
17Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
18and does not include cannabis subject to tax under the
19Compassionate Use of Medical Cannabis Program Act.
20    If the property that is purchased at retail from a
21retailer is acquired outside Illinois and used outside
22Illinois before being brought to Illinois for use here and is
23taxable under this Act, the "selling price" on which the tax is
24computed shall be reduced by an amount that represents a
25reasonable allowance for depreciation for the period of prior
26out-of-state use.

 

 

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1(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
2102-4, eff. 4-27-21.)
 
3    (35 ILCS 105/3a)  (from Ch. 120, par. 439.3a)
4    Sec. 3a. The tax imposed by the Act shall when collected be
5stated as a distinct item separate and apart from the selling
6price of the tangible personal property. However, where it is
7not possible to state the sales tax separately in situations
8such as sales from vending machines or sales of liquor by the
9drink the Department may by rule exempt such sales from this
10requirement so long as purchasers are notified by a sign that
11the tax is included in the selling price.
12    In addition, retailers who sell items that would have been
13taxed at the 1% rate but for the 0% rate imposed under this
14amendatory Act of the 102nd General Assembly shall, to the
15extent feasible, include the following statement on any cash
16register tape, receipt, invoice, or sales ticket issued to
17customers: "From July 1, 2022 through July 1, 2023, the State
18of Illinois sales tax on groceries is 0%.". If it is not
19feasible for the retailer to include the statement on any cash
20register tape, receipt, invoice, or sales ticket issued to
21customers, then the retailer shall post the statement on a
22sign that is clearly visible to customers. The sign shall be no
23smaller than 4 inches by 8 inches.
24(Source: P.A. 84-229.)
 

 

 

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1    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
2    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
3and trailers that are required to be registered with an agency
4of this State, each retailer required or authorized to collect
5the tax imposed by this Act shall pay to the Department the
6amount of such tax (except as otherwise provided) at the time
7when he is required to file his return for the period during
8which such tax was collected, less a discount of 2.1% prior to
9January 1, 1990, and 1.75% on and after January 1, 1990, or $5
10per calendar year, whichever is greater, which is allowed to
11reimburse the retailer for expenses incurred in collecting the
12tax, keeping records, preparing and filing returns, remitting
13the tax and supplying data to the Department on request. The
14discount under this Section is not allowed for the 1.25%
15portion of taxes paid on aviation fuel that is subject to the
16revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1747133. When determining the discount allowed under this
18Section, retailers shall include the amount of tax that would
19have been due at the 1% rate but for the 0% rate imposed under
20this amendatory Act of the 102nd General Assembly. In the case
21of retailers who report and pay the tax on a transaction by
22transaction basis, as provided in this Section, such discount
23shall be taken with each such tax remittance instead of when
24such retailer files his periodic return. The discount allowed
25under this Section is allowed only for returns that are filed
26in the manner required by this Act. The Department may

 

 

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1disallow the discount for retailers whose certificate of
2registration is revoked at the time the return is filed, but
3only if the Department's decision to revoke the certificate of
4registration has become final. A retailer need not remit that
5part of any tax collected by him to the extent that he is
6required to remit and does remit the tax imposed by the
7Retailers' Occupation Tax Act, with respect to the sale of the
8same property.
9    Where such tangible personal property is sold under a
10conditional sales contract, or under any other form of sale
11wherein the payment of the principal sum, or a part thereof, is
12extended beyond the close of the period for which the return is
13filed, the retailer, in collecting the tax (except as to motor
14vehicles, watercraft, aircraft, and trailers that are required
15to be registered with an agency of this State), may collect for
16each tax return period, only the tax applicable to that part of
17the selling price actually received during such tax return
18period.
19    Except as provided in this Section, on or before the
20twentieth day of each calendar month, such retailer shall file
21a return for the preceding calendar month. Such return shall
22be filed on forms prescribed by the Department and shall
23furnish such information as the Department may reasonably
24require. The return shall include the gross receipts on food
25for human consumption that is to be consumed off the premises
26where it is sold (other than alcoholic beverages, food

 

 

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

 

 

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1taxpayer shall also file a return with the Department for each
2of the first two months of each calendar quarter, on or before
3the twentieth day of the following calendar month, stating:
4        1. The name of the seller;
5        2. The address of the principal place of business from
6    which he engages in the business of selling tangible
7    personal property at retail in this State;
8        3. The total amount of taxable receipts received by
9    him during the preceding calendar month from sales of
10    tangible personal property by him during such preceding
11    calendar month, including receipts from charge and time
12    sales, but less all deductions allowed by law;
13        4. The amount of credit provided in Section 2d of this
14    Act;
15        5. The amount of tax due;
16        5-5. The signature of the taxpayer; and
17        6. Such other reasonable information as the Department
18    may require.
19    Each retailer required or authorized to collect the tax
20imposed by this Act on aviation fuel sold at retail in this
21State during the preceding calendar month shall, instead of
22reporting and paying tax on aviation fuel as otherwise
23required by this Section, report and pay such tax on a separate
24aviation fuel tax return. The requirements related to the
25return shall be as otherwise provided in this Section.
26Notwithstanding any other provisions of this Act to the

 

 

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1contrary, retailers collecting tax on aviation fuel shall file
2all aviation fuel tax returns and shall make all aviation fuel
3tax payments by electronic means in the manner and form
4required by the Department. For purposes of this Section,
5"aviation fuel" means jet fuel and aviation gasoline.
6    If a taxpayer fails to sign a return within 30 days after
7the proper notice and demand for signature by the Department,
8the return shall be considered valid and any amount shown to be
9due on the return shall be deemed assessed.
10    Notwithstanding any other provision of this Act to the
11contrary, retailers subject to tax on cannabis shall file all
12cannabis tax returns and shall make all cannabis tax payments
13by electronic means in the manner and form required by the
14Department.
15    Beginning October 1, 1993, a taxpayer who has an average
16monthly tax liability of $150,000 or more shall make all
17payments required by rules of the Department by electronic
18funds transfer. Beginning October 1, 1994, a taxpayer who has
19an average monthly tax liability of $100,000 or more shall
20make all payments required by rules of the Department by
21electronic funds transfer. Beginning October 1, 1995, a
22taxpayer who has an average monthly tax liability of $50,000
23or more shall make all payments required by rules of the
24Department by electronic funds transfer. Beginning October 1,
252000, a taxpayer who has an annual tax liability of $200,000 or
26more shall make all payments required by rules of the

 

 

10200SB0157ham002- 193 -LRB102 10128 HLH 39050 a

1Department by electronic funds transfer. The term "annual tax
2liability" shall be the sum of the taxpayer's liabilities
3under this Act, and under all other State and local occupation
4and use tax laws administered by the Department, for the
5immediately preceding calendar year. The term "average monthly
6tax liability" means the sum of the taxpayer's liabilities
7under this Act, and under all other State and local occupation
8and use tax laws administered by the Department, for the
9immediately preceding calendar year divided by 12. Beginning
10on October 1, 2002, a taxpayer who has a tax liability in the
11amount set forth in subsection (b) of Section 2505-210 of the
12Department of Revenue Law shall make all payments required by
13rules of the Department by electronic funds transfer.
14    Before August 1 of each year beginning in 1993, the
15Department shall notify all taxpayers required to make
16payments by electronic funds transfer. All taxpayers required
17to make payments by electronic funds transfer shall make those
18payments for a minimum of one year beginning on October 1.
19    Any taxpayer not required to make payments by electronic
20funds transfer may make payments by electronic funds transfer
21with the permission of the Department.
22    All taxpayers required to make payment by electronic funds
23transfer and any taxpayers authorized to voluntarily make
24payments by electronic funds transfer shall make those
25payments in the manner authorized by the Department.
26    The Department shall adopt such rules as are necessary to

 

 

10200SB0157ham002- 194 -LRB102 10128 HLH 39050 a

1effectuate a program of electronic funds transfer and the
2requirements of this Section.
3    Before October 1, 2000, if the taxpayer's average monthly
4tax liability to the Department under this Act, the Retailers'
5Occupation Tax Act, the Service Occupation Tax Act, the
6Service Use Tax Act was $10,000 or more during the preceding 4
7complete calendar quarters, he shall file a return with the
8Department each month by the 20th day of the month next
9following the month during which such tax liability is
10incurred and shall make payments to the Department on or
11before the 7th, 15th, 22nd and last day of the month during
12which such liability is incurred. On and after October 1,
132000, if the taxpayer's average monthly tax liability to the
14Department under this Act, the Retailers' Occupation Tax Act,
15the Service Occupation Tax Act, and the Service Use Tax Act was
16$20,000 or more during the preceding 4 complete calendar
17quarters, he shall file a return with the Department each
18month by the 20th day of the month next following the month
19during which such tax liability is incurred and shall make
20payment to the Department on or before the 7th, 15th, 22nd and
21last day of the month during which such liability is incurred.
22If the month during which such tax liability is incurred began
23prior to January 1, 1985, each payment shall be in an amount
24equal to 1/4 of the taxpayer's actual liability for the month
25or an amount set by the Department not to exceed 1/4 of the
26average monthly liability of the taxpayer to the Department

 

 

10200SB0157ham002- 195 -LRB102 10128 HLH 39050 a

1for the preceding 4 complete calendar quarters (excluding the
2month of highest liability and the month of lowest liability
3in such 4 quarter period). If the month during which such tax
4liability is incurred begins on or after January 1, 1985, and
5prior to January 1, 1987, each payment shall be in an amount
6equal to 22.5% of the taxpayer's actual liability for the
7month or 27.5% of the taxpayer's liability for the same
8calendar month of the preceding year. If the month during
9which such tax liability is incurred begins on or after
10January 1, 1987, and prior to January 1, 1988, each payment
11shall be in an amount equal to 22.5% of the taxpayer's actual
12liability for the month or 26.25% of the taxpayer's liability
13for the same calendar month of the preceding year. If the month
14during which such tax liability is incurred begins on or after
15January 1, 1988, and prior to January 1, 1989, or begins on or
16after January 1, 1996, each payment shall be in an amount equal
17to 22.5% of the taxpayer's actual liability for the month or
1825% of the taxpayer's liability for the same calendar month of
19the preceding year. If the month during which such tax
20liability is incurred begins on or after January 1, 1989, and
21prior to January 1, 1996, each payment shall be in an amount
22equal to 22.5% of the taxpayer's actual liability for the
23month or 25% of the taxpayer's liability for the same calendar
24month of the preceding year or 100% of the taxpayer's actual
25liability for the quarter monthly reporting period. The amount
26of such quarter monthly payments shall be credited against the

 

 

10200SB0157ham002- 196 -LRB102 10128 HLH 39050 a

1final tax liability of the taxpayer's return for that month.
2Before October 1, 2000, once applicable, the requirement of
3the making of quarter monthly payments to the Department shall
4continue until such taxpayer's average monthly liability to
5the Department during the preceding 4 complete calendar
6quarters (excluding the month of highest liability and the
7month of lowest liability) is less than $9,000, or until such
8taxpayer's average monthly liability to the Department as
9computed for each calendar quarter of the 4 preceding complete
10calendar quarter period is less than $10,000. However, if a
11taxpayer can show the Department that a substantial change in
12the taxpayer's business has occurred which causes the taxpayer
13to anticipate that his average monthly tax liability for the
14reasonably foreseeable future will fall below the $10,000
15threshold stated above, then such taxpayer may petition the
16Department for change in such taxpayer's reporting status. On
17and after October 1, 2000, once applicable, the requirement of
18the making of quarter monthly payments to the Department shall
19continue until such taxpayer's average monthly liability to
20the Department during the preceding 4 complete calendar
21quarters (excluding the month of highest liability and the
22month of lowest liability) is less than $19,000 or until such
23taxpayer's average monthly liability to the Department as
24computed for each calendar quarter of the 4 preceding complete
25calendar quarter period is less than $20,000. However, if a
26taxpayer can show the Department that a substantial change in

 

 

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1the taxpayer's business has occurred which causes the taxpayer
2to anticipate that his average monthly tax liability for the
3reasonably foreseeable future will fall below the $20,000
4threshold stated above, then such taxpayer may petition the
5Department for a change in such taxpayer's reporting status.
6The Department shall change such taxpayer's reporting status
7unless it finds that such change is seasonal in nature and not
8likely to be long term. Quarter monthly payment status shall
9be determined under this paragraph as if the rate reduction to
100% in this amendatory Act of the 102nd General Assembly on food
11for human consumption that is to be consumed off the premises
12where it is sold (other than alcoholic beverages, food
13consisting of or infused with adult use cannabis, soft drinks,
14and food that has been prepared for immediate consumption) had
15not occurred. For quarter monthly payments due under this
16paragraph on or after July 1, 2023 and through June 30, 2024,
17"25% of the taxpayer's liability for the same calendar month
18of the preceding year" shall be determined as if the rate
19reduction to 0% in this amendatory Act of the 102nd General
20Assembly had not occurred. If any such quarter monthly payment
21is not paid at the time or in the amount required by this
22Section, then the taxpayer shall be liable for penalties and
23interest on the difference between the minimum amount due and
24the amount of such quarter monthly payment actually and timely
25paid, except insofar as the taxpayer has previously made
26payments for that month to the Department in excess of the

 

 

10200SB0157ham002- 198 -LRB102 10128 HLH 39050 a

1minimum payments previously due as provided in this Section.
2The Department shall make reasonable rules and regulations to
3govern the quarter monthly payment amount and quarter monthly
4payment dates for taxpayers who file on other than a calendar
5monthly basis.
6    If any such payment provided for in this Section exceeds
7the taxpayer's liabilities under this Act, the Retailers'
8Occupation Tax Act, the Service Occupation Tax Act and the
9Service Use Tax Act, as shown by an original monthly return,
10the Department shall issue to the taxpayer a credit memorandum
11no later than 30 days after the date of payment, which
12memorandum may be submitted by the taxpayer to the Department
13in payment of tax liability subsequently to be remitted by the
14taxpayer to the Department or be assigned by the taxpayer to a
15similar taxpayer under this Act, the Retailers' Occupation Tax
16Act, the Service Occupation Tax Act or the Service Use Tax Act,
17in accordance with reasonable rules and regulations to be
18prescribed by the Department, except that if such excess
19payment is shown on an original monthly return and is made
20after December 31, 1986, no credit memorandum shall be issued,
21unless requested by the taxpayer. If no such request is made,
22the taxpayer may credit such excess payment against tax
23liability subsequently to be remitted by the taxpayer to the
24Department under this Act, the Retailers' Occupation Tax Act,
25the Service Occupation Tax Act or the Service Use Tax Act, in
26accordance with reasonable rules and regulations prescribed by

 

 

10200SB0157ham002- 199 -LRB102 10128 HLH 39050 a

1the Department. If the Department subsequently determines that
2all or any part of the credit taken was not actually due to the
3taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
4be reduced by 2.1% or 1.75% of the difference between the
5credit taken and that actually due, and the taxpayer shall be
6liable for penalties and interest on such difference.
7    If the retailer is otherwise required to file a monthly
8return and if the retailer's average monthly tax liability to
9the Department does not exceed $200, the Department may
10authorize his returns to be filed on a quarter annual basis,
11with the return for January, February, and March of a given
12year being due by April 20 of such year; with the return for
13April, May and June of a given year being due by July 20 of
14such year; with the return for July, August and September of a
15given year being due by October 20 of such year, and with the
16return for October, November and December of a given year
17being due by January 20 of the following year.
18    If the retailer is otherwise required to file a monthly or
19quarterly return and if the retailer's average monthly tax
20liability to the Department does not exceed $50, the
21Department may authorize his returns to be filed on an annual
22basis, with the return for a given year being due by January 20
23of the following year.
24    Such quarter annual and annual returns, as to form and
25substance, shall be subject to the same requirements as
26monthly returns.

 

 

10200SB0157ham002- 200 -LRB102 10128 HLH 39050 a

1    Notwithstanding any other provision in this Act concerning
2the time within which a retailer may file his return, in the
3case of any retailer who ceases to engage in a kind of business
4which makes him responsible for filing returns under this Act,
5such retailer shall file a final return under this Act with the
6Department not more than one month after discontinuing such
7business.
8    In addition, with respect to motor vehicles, watercraft,
9aircraft, and trailers that are required to be registered with
10an agency of this State, except as otherwise provided in this
11Section, every retailer selling this kind of tangible personal
12property shall file, with the Department, upon a form to be
13prescribed and supplied by the Department, a separate return
14for each such item of tangible personal property which the
15retailer sells, except that if, in the same transaction, (i) a
16retailer of aircraft, watercraft, motor vehicles or trailers
17transfers more than one aircraft, watercraft, motor vehicle or
18trailer to another aircraft, watercraft, motor vehicle or
19trailer retailer for the purpose of resale or (ii) a retailer
20of aircraft, watercraft, motor vehicles, or trailers transfers
21more than one aircraft, watercraft, motor vehicle, or trailer
22to a purchaser for use as a qualifying rolling stock as
23provided in Section 3-55 of this Act, then that seller may
24report the transfer of all the aircraft, watercraft, motor
25vehicles or trailers involved in that transaction to the
26Department on the same uniform invoice-transaction reporting

 

 

10200SB0157ham002- 201 -LRB102 10128 HLH 39050 a

1return form. For purposes of this Section, "watercraft" means
2a Class 2, Class 3, or Class 4 watercraft as defined in Section
33-2 of the Boat Registration and Safety Act, a personal
4watercraft, or any boat equipped with an inboard motor.
5    In addition, with respect to motor vehicles, watercraft,
6aircraft, and trailers that are required to be registered with
7an agency of this State, every person who is engaged in the
8business of leasing or renting such items and who, in
9connection with such business, sells any such item to a
10retailer for the purpose of resale is, notwithstanding any
11other provision of this Section to the contrary, authorized to
12meet the return-filing requirement of this Act by reporting
13the transfer of all the aircraft, watercraft, motor vehicles,
14or trailers transferred for resale during a month to the
15Department on the same uniform invoice-transaction reporting
16return form on or before the 20th of the month following the
17month in which the transfer takes place. Notwithstanding any
18other provision of this Act to the contrary, all returns filed
19under this paragraph must be filed by electronic means in the
20manner and form as required by the Department.
21    The transaction reporting return in the case of motor
22vehicles or trailers that are required to be registered with
23an agency of this State, shall be the same document as the
24Uniform Invoice referred to in Section 5-402 of the Illinois
25Vehicle Code and must show the name and address of the seller;
26the name and address of the purchaser; the amount of the

 

 

10200SB0157ham002- 202 -LRB102 10128 HLH 39050 a

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

 

 

10200SB0157ham002- 203 -LRB102 10128 HLH 39050 a

1purchaser by the retailer on such transaction (or satisfactory
2evidence that such tax is not due in that particular instance,
3if that is claimed to be the fact); the place and date of the
4sale, a sufficient identification of the property sold, and
5such other information as the Department may reasonably
6require.
7    Such transaction reporting return shall be filed not later
8than 20 days after the date of delivery of the item that is
9being sold, but may be filed by the retailer at any time sooner
10than that if he chooses to do so. The transaction reporting
11return and tax remittance or proof of exemption from the tax
12that is imposed by this Act may be transmitted to the
13Department by way of the State agency with which, or State
14officer with whom, the tangible personal property must be
15titled or registered (if titling or registration is required)
16if the Department and such agency or State officer determine
17that this procedure will expedite the processing of
18applications for title or registration.
19    With each such transaction reporting return, the retailer
20shall remit the proper amount of tax due (or shall submit
21satisfactory evidence that the sale is not taxable if that is
22the case), to the Department or its agents, whereupon the
23Department shall issue, in the purchaser's name, a tax receipt
24(or a certificate of exemption if the Department is satisfied
25that the particular sale is tax exempt) which such purchaser
26may submit to the agency with which, or State officer with

 

 

10200SB0157ham002- 204 -LRB102 10128 HLH 39050 a

1whom, he must title or register the tangible personal property
2that is involved (if titling or registration is required) in
3support of such purchaser's application for an Illinois
4certificate or other evidence of title or registration to such
5tangible personal property.
6    No retailer's failure or refusal to remit tax under this
7Act precludes a user, who has paid the proper tax to the
8retailer, from obtaining his certificate of title or other
9evidence of title or registration (if titling or registration
10is required) upon satisfying the Department that such user has
11paid the proper tax (if tax is due) to the retailer. The
12Department shall adopt appropriate rules to carry out the
13mandate of this paragraph.
14    If the user who would otherwise pay tax to the retailer
15wants the transaction reporting return filed and the payment
16of tax or proof of exemption made to the Department before the
17retailer is willing to take these actions and such user has not
18paid the tax to the retailer, such user may certify to the fact
19of such delay by the retailer, and may (upon the Department
20being satisfied of the truth of such certification) transmit
21the information required by the transaction reporting return
22and the remittance for tax or proof of exemption directly to
23the Department and obtain his tax receipt or exemption
24determination, in which event the transaction reporting return
25and tax remittance (if a tax payment was required) shall be
26credited by the Department to the proper retailer's account

 

 

10200SB0157ham002- 205 -LRB102 10128 HLH 39050 a

1with the Department, but without the 2.1% or 1.75% discount
2provided for in this Section being allowed. When the user pays
3the tax directly to the Department, he shall pay the tax in the
4same amount and in the same form in which it would be remitted
5if the tax had been remitted to the Department by the retailer.
6    Where a retailer collects the tax with respect to the
7selling price of tangible personal property which he sells and
8the purchaser thereafter returns such tangible personal
9property and the retailer refunds the selling price thereof to
10the purchaser, such retailer shall also refund, to the
11purchaser, the tax so collected from the purchaser. When
12filing his return for the period in which he refunds such tax
13to the purchaser, the retailer may deduct the amount of the tax
14so refunded by him to the purchaser from any other use tax
15which such retailer may be required to pay or remit to the
16Department, as shown by such return, if the amount of the tax
17to be deducted was previously remitted to the Department by
18such retailer. If the retailer has not previously remitted the
19amount of such tax to the Department, he is entitled to no
20deduction under this Act upon refunding such tax to the
21purchaser.
22    Any retailer filing a return under this Section shall also
23include (for the purpose of paying tax thereon) the total tax
24covered by such return upon the selling price of tangible
25personal property purchased by him at retail from a retailer,
26but as to which the tax imposed by this Act was not collected

 

 

10200SB0157ham002- 206 -LRB102 10128 HLH 39050 a

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

 

 

10200SB0157ham002- 207 -LRB102 10128 HLH 39050 a

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

 

 

10200SB0157ham002- 208 -LRB102 10128 HLH 39050 a

1rate on the selling price of motor fuel and gasohol. Beginning
2September 1, 2010, each month the Department shall pay into
3the State and Local Sales Tax Reform Fund 100% of the net
4revenue realized for the preceding month from the 1.25% rate
5on the selling price of sales tax holiday items.
6    Beginning January 1, 1990, each month the Department shall
7pay into the Local Government Tax Fund 16% of the net revenue
8realized for the preceding month from the 6.25% general rate
9on the selling price of tangible personal property which is
10purchased outside Illinois at retail from a retailer and which
11is titled or registered by an agency of this State's
12government.
13    Beginning October 1, 2009, each month the Department shall
14pay into the Capital Projects Fund an amount that is equal to
15an amount estimated by the Department to represent 80% of the
16net revenue realized for the preceding month from the sale of
17candy, grooming and hygiene products, and soft drinks that had
18been taxed at a rate of 1% prior to September 1, 2009 but that
19are now taxed at 6.25%.
20    Beginning July 1, 2011, each month the Department shall
21pay into the Clean Air Act Permit Fund 80% of the net revenue
22realized for the preceding month from the 6.25% general rate
23on the selling price of sorbents used in Illinois in the
24process of sorbent injection as used to comply with the
25Environmental Protection Act or the federal Clean Air Act, but
26the total payment into the Clean Air Act Permit Fund under this

 

 

10200SB0157ham002- 209 -LRB102 10128 HLH 39050 a

1Act and the Retailers' Occupation Tax Act shall not exceed
2$2,000,000 in any fiscal year.
3    Beginning July 1, 2013, each month the Department shall
4pay into the Underground Storage Tank Fund from the proceeds
5collected under this Act, the Service Use Tax Act, the Service
6Occupation Tax Act, and the Retailers' Occupation Tax Act an
7amount equal to the average monthly deficit in the Underground
8Storage Tank Fund during the prior year, as certified annually
9by the Illinois Environmental Protection Agency, but the total
10payment into the Underground Storage Tank Fund under this Act,
11the Service Use Tax Act, the Service Occupation Tax Act, and
12the Retailers' Occupation Tax Act shall not exceed $18,000,000
13in any State fiscal year. As used in this paragraph, the
14"average monthly deficit" shall be equal to the difference
15between the average monthly claims for payment by the fund and
16the average monthly revenues deposited into the fund,
17excluding payments made pursuant to this paragraph.
18    Beginning July 1, 2015, of the remainder of the moneys
19received by the Department under this Act, the Service Use Tax
20Act, the Service Occupation Tax Act, and the Retailers'
21Occupation Tax Act, each month the Department shall deposit
22$500,000 into the State Crime Laboratory Fund.
23    Of the remainder of the moneys received by the Department
24pursuant to this Act, (a) 1.75% thereof shall be paid into the
25Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
26and after July 1, 1989, 3.8% thereof shall be paid into the

 

 

10200SB0157ham002- 210 -LRB102 10128 HLH 39050 a

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

 

 

10200SB0157ham002- 211 -LRB102 10128 HLH 39050 a

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

 

 

10200SB0157ham002- 212 -LRB102 10128 HLH 39050 a

1Fund; provided, however, that any amounts paid to the Build
2Illinois Fund in any fiscal year pursuant to this sentence
3shall be deemed to constitute payments pursuant to clause (b)
4of the preceding sentence and shall reduce the amount
5otherwise payable for such fiscal year pursuant to clause (b)
6of the preceding sentence. The moneys received by the
7Department pursuant to this Act and required to be deposited
8into the Build Illinois Fund are subject to the pledge, claim
9and charge set forth in Section 12 of the Build Illinois Bond
10Act.
11    Subject to payment of amounts into the Build Illinois Fund
12as provided in the preceding paragraph or in any amendment
13thereto hereafter enacted, the following specified monthly
14installment of the amount requested in the certificate of the
15Chairman of the Metropolitan Pier and Exposition Authority
16provided under Section 8.25f of the State Finance Act, but not
17in excess of the sums designated as "Total Deposit", shall be
18deposited in the aggregate from collections under Section 9 of
19the Use Tax Act, Section 9 of the Service Use Tax Act, Section
209 of the Service Occupation Tax Act, and Section 3 of the
21Retailers' Occupation Tax Act into the McCormick Place
22Expansion Project Fund in the specified fiscal years.
23Fiscal YearTotal Deposit
241993         $0
251994 53,000,000
261995 58,000,000

 

 

10200SB0157ham002- 213 -LRB102 10128 HLH 39050 a

11996 61,000,000
21997 64,000,000
31998 68,000,000
41999 71,000,000
52000 75,000,000
62001 80,000,000
72002 93,000,000
82003 99,000,000
92004103,000,000
102005108,000,000
112006113,000,000
122007119,000,000
132008126,000,000
142009132,000,000
152010139,000,000
162011146,000,000
172012153,000,000
182013161,000,000
192014170,000,000
202015179,000,000
212016189,000,000
222017199,000,000
232018210,000,000
242019221,000,000
252020233,000,000
262021300,000,000

 

 

10200SB0157ham002- 214 -LRB102 10128 HLH 39050 a

12022300,000,000
22023300,000,000
32024 300,000,000
42025 300,000,000
52026 300,000,000
62027 375,000,000
72028 375,000,000
82029 375,000,000
92030 375,000,000
102031 375,000,000
112032 375,000,000
122033 375,000,000
132034375,000,000
142035375,000,000
152036450,000,000
16and
17each fiscal year
18thereafter that bonds
19are outstanding under
20Section 13.2 of the
21Metropolitan Pier and
22Exposition Authority Act,
23but not after fiscal year 2060.
24    Beginning July 20, 1993 and in each month of each fiscal
25year thereafter, one-eighth of the amount requested in the
26certificate of the Chairman of the Metropolitan Pier and

 

 

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1Exposition Authority for that fiscal year, less the amount
2deposited into the McCormick Place Expansion Project Fund by
3the State Treasurer in the respective month under subsection
4(g) of Section 13 of the Metropolitan Pier and Exposition
5Authority Act, plus cumulative deficiencies in the deposits
6required under this Section for previous months and years,
7shall be deposited into the McCormick Place Expansion Project
8Fund, until the full amount requested for the fiscal year, but
9not in excess of the amount specified above as "Total
10Deposit", has been deposited.
11    Subject to payment of amounts into the Capital Projects
12Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
13and the McCormick Place Expansion Project Fund pursuant to the
14preceding paragraphs or in any amendments thereto hereafter
15enacted, for aviation fuel sold on or after December 1, 2019,
16the Department shall each month deposit into the Aviation Fuel
17Sales Tax Refund Fund an amount estimated by the Department to
18be required for refunds of the 80% portion of the tax on
19aviation fuel under this Act. The Department shall only
20deposit moneys into the Aviation Fuel Sales Tax Refund Fund
21under this paragraph for so long as the revenue use
22requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
23binding on the State.
24    Subject to payment of amounts into the Build Illinois Fund
25and the McCormick Place Expansion Project Fund pursuant to the
26preceding paragraphs or in any amendments thereto hereafter

 

 

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1enacted, beginning July 1, 1993 and ending on September 30,
22013, the Department shall each month pay into the Illinois
3Tax Increment Fund 0.27% of 80% of the net revenue realized for
4the preceding month from the 6.25% general rate on the selling
5price of tangible personal property.
6    Subject to payment of amounts into the Build Illinois Fund
7and the McCormick Place Expansion Project Fund pursuant to the
8preceding paragraphs or in any amendments thereto hereafter
9enacted, beginning with the receipt of the first report of
10taxes paid by an eligible business and continuing for a
1125-year period, the Department shall each month pay into the
12Energy Infrastructure Fund 80% of the net revenue realized
13from the 6.25% general rate on the selling price of
14Illinois-mined coal that was sold to an eligible business. For
15purposes of this paragraph, the term "eligible business" means
16a new electric generating facility certified pursuant to
17Section 605-332 of the Department of Commerce and Economic
18Opportunity Law of the Civil Administrative Code of Illinois.
19    Subject to payment of amounts into the Build Illinois
20Fund, the McCormick Place Expansion Project Fund, the Illinois
21Tax Increment Fund, and the Energy Infrastructure Fund
22pursuant to the preceding paragraphs or in any amendments to
23this Section hereafter enacted, beginning on the first day of
24the first calendar month to occur on or after August 26, 2014
25(the effective date of Public Act 98-1098), each month, from
26the collections made under Section 9 of the Use Tax Act,

 

 

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1Section 9 of the Service Use Tax Act, Section 9 of the Service
2Occupation Tax Act, and Section 3 of the Retailers' Occupation
3Tax Act, the Department shall pay into the Tax Compliance and
4Administration Fund, to be used, subject to appropriation, to
5fund additional auditors and compliance personnel at the
6Department of Revenue, an amount equal to 1/12 of 5% of 80% of
7the cash receipts collected during the preceding fiscal year
8by the Audit Bureau of the Department under the Use Tax Act,
9the Service Use Tax Act, the Service Occupation Tax Act, the
10Retailers' Occupation Tax Act, and associated local occupation
11and use taxes administered by the Department.
12    Subject to payments of amounts into the Build Illinois
13Fund, the McCormick Place Expansion Project Fund, the Illinois
14Tax Increment Fund, the Energy Infrastructure Fund, and the
15Tax Compliance and Administration Fund as provided in this
16Section, beginning on July 1, 2018 the Department shall pay
17each month into the Downstate Public Transportation Fund the
18moneys required to be so paid under Section 2-3 of the
19Downstate Public Transportation