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Rep. Dave Vella
Filed: 5/14/2024
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1 | | AMENDMENT TO HOUSE BILL 817
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2 | | AMENDMENT NO. ______. Amend House Bill 817 by replacing |
3 | | everything after the enacting clause with the following: |
4 | | "Section 5. The Department of Commerce and Economic |
5 | | Opportunity Law of the Civil Administrative Code of Illinois |
6 | | is amended by adding Section 605-1115 as follows: |
7 | | (20 ILCS 605/605-1115 new) |
8 | | Sec. 605-1115. Quantum computing campus enterprise zone. |
9 | | (a) As used in this Section: |
10 | | "Data center" means a facility: (1) whose primary, |
11 | | services are the storage, management, and processing of |
12 | | digital data; and (2) that is used to house (A) computer and |
13 | | network systems, including associated components such as |
14 | | servers, network equipment and appliances, telecommunications, |
15 | | and data storage systems, (B) systems for monitoring and |
16 | | managing infrastructure performance, (C) Internet-related |
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1 | | equipment and services, (D) data communications connections, |
2 | | (E) environmental controls, (F) fire protection systems, and |
3 | | (G) security systems and services. |
4 | | "Full-time equivalent job" means a job in which an |
5 | | employee works for a tenant of the quantum campus at a rate of |
6 | | at least 35 hours per week. Vacations, paid holidays, and sick |
7 | | time are included in this computation. Overtime is not |
8 | | considered a part of regular hours. |
9 | | "Qualified tangible property" means: electrical systems |
10 | | and equipment; climate control and chilling equipment and |
11 | | systems; mechanical systems and equipment; monitoring and |
12 | | secure systems; emergency generators; hardware; computers; |
13 | | servers; data storage devices; network connectivity equipment; |
14 | | racks; cabinets; telecommunications cabling infrastructure; |
15 | | raised floor systems; peripheral components or systems; |
16 | | software; mechanical, electrical, or plumbing systems; battery |
17 | | systems; cooling systems and towers; temperature control |
18 | | systems; other cabling; and other quantum computing |
19 | | infrastructure equipment and systems necessary to operate |
20 | | qualified tangible property, including fixtures; and component |
21 | | parts of any of the foregoing, including installation, |
22 | | maintenance, repair, refurbishment, and replacement of |
23 | | qualified tangible property to generate, transform, transmit, |
24 | | distribute, or manage electricity necessary to operate |
25 | | qualified tangible property; and all other tangible property |
26 | | that is essential to the operations of a quantum computing |
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1 | | campus. "Qualified tangible property" also includes building |
2 | | materials physically incorporated into the quantum computing |
3 | | campus. |
4 | | "Quantum computing campus enterprise zone" or "campus" is |
5 | | a contiguous area located in the State of Illinois that is |
6 | | designated by the Department as a quantum computing campus |
7 | | enterprise zone in order to support the demand for quantum |
8 | | computing research, development, and implementation for |
9 | | practical use. A quantum campus enterprise zone may include |
10 | | educational intuitions, nonprofit research and development |
11 | | organizations, and for-profit organizations serving as anchor |
12 | | tenants and joining tenants that, with approval from the |
13 | | Department, may change. Tenants located at the campus shall |
14 | | have direct and supporting roles in quantum computing |
15 | | activities. Eligible tenants include quantum computer |
16 | | operators and research facilities, data centers, manufacturers |
17 | | and assemblers of quantum computers and component parts, |
18 | | cryogenic or refrigeration facilities, and other facilities |
19 | | determined, by industry and academic leaders, to be |
20 | | fundamental to the research and development of quantum |
21 | | computing for practical solutions. Quantum computing shall |
22 | | include the research, development, and use of computing |
23 | | methods that generate and manipulate quantum bits in a |
24 | | controlled quantum state. This includes the use of photons, |
25 | | semiconductors, superconductors, tapped ions, and other |
26 | | industry and academically regarded methods for simulating |
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1 | | quantum bits. Additionally, a quantum campus shall meet the |
2 | | following criteria: |
3 | | (1) the campus must comprise a minimum of one-half |
4 | | square mile and not more than 4 square miles; |
5 | | (2) the campus must contain tenants that demonstrate a |
6 | | substantial plan for using the designation to encourage |
7 | | participation by organizations owned by minorities, women, |
8 | | and persons with disabilities, as those terms are defined |
9 | | in the Business Enterprise for Minorities, Women, and |
10 | | Persons with Disabilities Act, and the hiring of |
11 | | minorities, women, and persons with disabilities; |
12 | | (3) upon being placed in service, within 60 months |
13 | | after designation or incorporation into a campus, the |
14 | | owners of property located in a campus shall certify to |
15 | | the Department that the property is carbon neutral or has |
16 | | attained certification under one or more of the following |
17 | | green building standards: |
18 | | (A) BREEAM for New Construction or BREEAM, In-Use; |
19 | | (B) ENERGY STAR; |
20 | | (C) Envision; |
21 | | (D) ISO 50001-energy management; |
22 | | (E) LEED for Building Design and Construction, or |
23 | | LEED for Operations and Maintenance; |
24 | | (F) Green Globes for New Construction or, Green |
25 | | Globes for Existing Buildings; |
26 | | (G) UL 3223; or |
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1 | | (H) an equivalent program approved by the |
2 | | Department of Commerce and Economic Opportunity. |
3 | | (b) Tenants located in a designated quantum campus |
4 | | enterprise zone shall qualify for the following exemptions and |
5 | | credits: |
6 | | (1) an exemption from the taxes imposed under the Use |
7 | | Tax Act, the Service Use Tax Act, the Service Occupation |
8 | | Tax Act, and the Retailers' Occupation Tax Act, as |
9 | | provided in those Acts; |
10 | | (2) an exemption from the Chicago non-titled use tax |
11 | | and all locally imposed retailers' occupation taxes |
12 | | administered and collected by the Department of Revenue; |
13 | | (3) an exemption from the charges imposed under |
14 | | Section 9-222 and 9-222.1 of the Public Utilities Act; and |
15 | | (4) a credit against the taxes imposed under |
16 | | subsections (a) and (b) of Section 201 of the Illinois |
17 | | Income Tax Act as provided in Section 241 of the Illinois |
18 | | Income Tax Act. |
19 | | (c) Certificates of exemption and credit certificates |
20 | | under this Section shall be issued by the Department of |
21 | | Commerce and Economic Opportunity. |
22 | | (d) Entities seeking to form a quantum computing campus |
23 | | enterprise zone must apply to the Department in the manner |
24 | | specified by the Department. Entities seeking to join an |
25 | | established campus must apply for an amendment to the existing |
26 | | campus. This application for amendment must be submitted to |
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1 | | the Department with support from other campus members. |
2 | | The Department shall determine the duration of the |
3 | | certificate of exemption awarded under this Act. The duration |
4 | | of the certificate of exemption may not exceed 20 calendar |
5 | | years and one renewal for an additional 20 years. |
6 | | The Department and any tenant located in a quantum |
7 | | computing campus enterprise zone seeking the benefits under |
8 | | this Section must enter into a memorandum of understanding |
9 | | that, at a minimum, provides: |
10 | | (1) the details for determining the amount of capital |
11 | | investment to be made; |
12 | | (2) the number of new jobs created; |
13 | | (3) the timeline for achieving the capital investment |
14 | | and new job goals; |
15 | | (4) the repayment obligation should those goals not be |
16 | | achieved and any conditions under which repayment by the |
17 | | tenant or tenants claiming the exemption shall be |
18 | | required; |
19 | | (5) the duration of the exemptions; and |
20 | | (6) other provisions as deemed necessary by the |
21 | | Department. |
22 | | The Department shall, within 10 days after the |
23 | | designation, send a letter of notification to each member of |
24 | | the General Assembly whose legislative district or |
25 | | representative district contains all or part of the designated |
26 | | area. |
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1 | | (e) Beginning on July 1, 2025, and each year thereafter, |
2 | | the Department shall annually report to the Governor and the |
3 | | General Assembly on the outcomes and effectiveness of this |
4 | | amendatory Act of the 103rd General Assembly. The report shall |
5 | | include the following: |
6 | | (1) the names of each tenant located within the |
7 | | quantum computing campus enterprise zone; |
8 | | (2) the location of each quantum computing campus |
9 | | enterprise zone; |
10 | | (3) the estimated value of the credits to be issued to |
11 | | quantum computing campus enterprise zone tenants; |
12 | | (4) the number of new jobs and, if applicable, |
13 | | retained jobs pledged at each quantum computing campus |
14 | | enterprise zone; and |
15 | | (5) whether or not the quantum computing campus |
16 | | enterprise zone is located in an underserved area, an |
17 | | energy transition zone, or an opportunity zone. |
18 | | (f) Tenants at the quantum computing campus enterprise |
19 | | zone seeking a certificate of exemption related to the |
20 | | construction of required facilities shall require the |
21 | | contractor and all subcontractors to: |
22 | | (1) comply with the requirements of Section 30-22 of |
23 | | the Illinois Procurement Code as those requirements apply |
24 | | to responsible bidders and to present satisfactory |
25 | | evidence of that compliance to the Department; and |
26 | | (2) enter into a project labor agreement submitted to |
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1 | | the Department. |
2 | | (g) Any tenants issued a certificate of exemption under |
3 | | this Section must annually report to the Department of Revenue |
4 | | the total quantum computing campus enterprise zone benefits |
5 | | that are received by the tenant. Reports are due no later than |
6 | | September 30 of each year and shall cover the previous |
7 | | calendar year. The first report shall cover the 2025 calendar |
8 | | year and is due no later than September 30, 2026. |
9 | | Failure to file a report under this subsection (g) may |
10 | | result in suspension or revocation of the certificate of |
11 | | exemption. Factors to be considered in determining whether a |
12 | | certificate of exemption shall be suspended or revoked |
13 | | include, but are not limited to, prior compliance with the |
14 | | reporting requirements, cooperation in discontinuing and |
15 | | correcting violations, the extent of the violation, and |
16 | | whether the violation was willful or inadvertent. |
17 | | (h) The Department shall not issue any new certificates of |
18 | | exemption under the provisions of this Section after July 1, |
19 | | 2030. This sunset shall not affect any existing certificates |
20 | | of exemption in effect on July 1, 2030. |
21 | | (i) The Department shall adopt rules to implement and |
22 | | administer this Section. |
23 | | Section 10. The Illinois Enterprise Zone Act is amended by |
24 | | changing Sections 5.5 and 13 as follows: |
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1 | | (20 ILCS 655/5.5) (from Ch. 67 1/2, par. 609.1) |
2 | | Sec. 5.5. High Impact Business. |
3 | | (a) In order to respond to unique opportunities to assist |
4 | | in the encouragement, development, growth, and expansion of |
5 | | the private sector through large scale investment and |
6 | | development projects, the Department is authorized to receive |
7 | | and approve applications for the designation of "High Impact |
8 | | Businesses" in Illinois, for an initial term of 20 years with |
9 | | an option for renewal for a term not to exceed 20 years, |
10 | | subject to the following conditions: |
11 | | (1) such applications may be submitted at any time |
12 | | during the year; |
13 | | (2) such business is not located, at the time of |
14 | | designation, in an enterprise zone designated pursuant to |
15 | | this Act , except for grocery stores defined by the Grocery |
16 | | Initiative Act ; |
17 | | (3) the business intends to do, commits to do, or is |
18 | | one or more of the following: |
19 | | (A) the business intends to make a minimum |
20 | | investment of $12,000,000 which will be placed in |
21 | | service in qualified property and intends to create |
22 | | 500 full-time equivalent jobs at a designated location |
23 | | in Illinois or intends to make a minimum investment of |
24 | | $30,000,000 which will be placed in service in |
25 | | qualified property and intends to retain 1,500 |
26 | | full-time retained jobs at a designated location in |
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1 | | Illinois. The terms "placed in service" and "qualified |
2 | | property" have the same meanings as described in |
3 | | subsection (h) of Section 201 of the Illinois Income |
4 | | Tax Act; or |
5 | | (B) the business intends to establish a new |
6 | | electric generating facility at a designated location |
7 | | in Illinois. "New electric generating facility", for |
8 | | purposes of this Section, means a newly constructed |
9 | | electric generation plant or a newly constructed |
10 | | generation capacity expansion at an existing electric |
11 | | generation plant, including the transmission lines and |
12 | | associated equipment that transfers electricity from |
13 | | points of supply to points of delivery, and for which |
14 | | such new foundation construction commenced not sooner |
15 | | than July 1, 2001. Such facility shall be designed to |
16 | | provide baseload electric generation and shall operate |
17 | | on a continuous basis throughout the year; and (i) |
18 | | shall have an aggregate rated generating capacity of |
19 | | at least 1,000 megawatts for all new units at one site |
20 | | if it uses natural gas as its primary fuel and |
21 | | foundation construction of the facility is commenced |
22 | | on or before December 31, 2004, or shall have an |
23 | | aggregate rated generating capacity of at least 400 |
24 | | megawatts for all new units at one site if it uses coal |
25 | | or gases derived from coal as its primary fuel and |
26 | | shall support the creation of at least 150 new |
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1 | | Illinois coal mining jobs, or (ii) shall be funded |
2 | | through a federal Department of Energy grant before |
3 | | December 31, 2010 and shall support the creation of |
4 | | Illinois coal mining coal-mining jobs, or (iii) shall |
5 | | use coal gasification or integrated |
6 | | gasification-combined cycle units that generate |
7 | | electricity or chemicals, or both, and shall support |
8 | | the creation of Illinois coal mining coal-mining jobs. |
9 | | The term "placed in service" has the same meaning as |
10 | | described in subsection (h) of Section 201 of the |
11 | | Illinois Income Tax Act; or |
12 | | (B-5) the business intends to establish a new |
13 | | gasification facility at a designated location in |
14 | | Illinois. As used in this Section, "new gasification |
15 | | facility" means a newly constructed coal gasification |
16 | | facility that generates chemical feedstocks or |
17 | | transportation fuels derived from coal (which may |
18 | | include, but are not limited to, methane, methanol, |
19 | | and nitrogen fertilizer), that supports the creation |
20 | | or retention of Illinois coal mining coal-mining jobs, |
21 | | and that qualifies for financial assistance from the |
22 | | Department before December 31, 2010. A new |
23 | | gasification facility does not include a pilot project |
24 | | located within Jefferson County or within a county |
25 | | adjacent to Jefferson County for synthetic natural gas |
26 | | from coal; or |
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1 | | (C) the business intends to establish production |
2 | | operations at a new coal mine, re-establish production |
3 | | operations at a closed coal mine, or expand production |
4 | | at an existing coal mine at a designated location in |
5 | | Illinois not sooner than July 1, 2001; provided that |
6 | | the production operations result in the creation of |
7 | | 150 new Illinois coal mining jobs as described in |
8 | | subdivision (a)(3)(B) of this Section, and further |
9 | | provided that the coal extracted from such mine is |
10 | | utilized as the predominant source for a new electric |
11 | | generating facility. The term "placed in service" has |
12 | | the same meaning as described in subsection (h) of |
13 | | Section 201 of the Illinois Income Tax Act; or |
14 | | (D) the business intends to construct new |
15 | | transmission facilities or upgrade existing |
16 | | transmission facilities at designated locations in |
17 | | Illinois, for which construction commenced not sooner |
18 | | than July 1, 2001. For the purposes of this Section, |
19 | | "transmission facilities" means transmission lines |
20 | | with a voltage rating of 115 kilovolts or above, |
21 | | including associated equipment, that transfer |
22 | | electricity from points of supply to points of |
23 | | delivery and that transmit a majority of the |
24 | | electricity generated by a new electric generating |
25 | | facility designated as a High Impact Business in |
26 | | accordance with this Section. The term "placed in |
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1 | | service" has the same meaning as described in |
2 | | subsection (h) of Section 201 of the Illinois Income |
3 | | Tax Act; or |
4 | | (E) the business intends to establish a new wind |
5 | | power facility at a designated location in Illinois. |
6 | | For purposes of this Section, "new wind power |
7 | | facility" means a newly constructed electric |
8 | | generation facility, a newly constructed expansion of |
9 | | an existing electric generation facility, or the |
10 | | replacement of an existing electric generation |
11 | | facility, including the demolition and removal of an |
12 | | electric generation facility irrespective of whether |
13 | | it will be replaced, placed in service or replaced on |
14 | | or after July 1, 2009, that generates electricity |
15 | | using wind energy devices, and such facility shall be |
16 | | deemed to include any permanent structures associated |
17 | | with the electric generation facility and all |
18 | | associated transmission lines, substations, and other |
19 | | equipment related to the generation of electricity |
20 | | from wind energy devices. For purposes of this |
21 | | Section, "wind energy device" means any device, with a |
22 | | nameplate capacity of at least 0.5 megawatts, that is |
23 | | used in the process of converting kinetic energy from |
24 | | the wind to generate electricity; or |
25 | | (E-5) the business intends to establish a new |
26 | | utility-scale solar facility at a designated location |
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1 | | in Illinois. For purposes of this Section, "new |
2 | | utility-scale solar power facility" means a newly |
3 | | constructed electric generation facility, or a newly |
4 | | constructed expansion of an existing electric |
5 | | generation facility, placed in service on or after |
6 | | July 1, 2021, that (i) generates electricity using |
7 | | photovoltaic cells and (ii) has a nameplate capacity |
8 | | that is greater than 5,000 kilowatts, and such |
9 | | facility shall be deemed to include all associated |
10 | | transmission lines, substations, energy storage |
11 | | facilities, and other equipment related to the |
12 | | generation and storage of electricity from |
13 | | photovoltaic cells; or |
14 | | (F) the business commits to (i) make a minimum |
15 | | investment of $500,000,000, which will be placed in |
16 | | service in a qualified property, (ii) create 125 |
17 | | full-time equivalent jobs at a designated location in |
18 | | Illinois, (iii) establish a fertilizer plant at a |
19 | | designated location in Illinois that complies with the |
20 | | set-back standards as described in Table 1: Initial |
21 | | Isolation and Protective Action Distances in the 2012 |
22 | | Emergency Response Guidebook published by the United |
23 | | States Department of Transportation, (iv) pay a |
24 | | prevailing wage for employees at that location who are |
25 | | engaged in construction activities, and (v) secure an |
26 | | appropriate level of general liability insurance to |
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1 | | protect against catastrophic failure of the fertilizer |
2 | | plant or any of its constituent systems; in addition, |
3 | | the business must agree to enter into a construction |
4 | | project labor agreement including provisions |
5 | | establishing wages, benefits, and other compensation |
6 | | for employees performing work under the project labor |
7 | | agreement at that location; for the purposes of this |
8 | | Section, "fertilizer plant" means a newly constructed |
9 | | or upgraded plant utilizing gas used in the production |
10 | | of anhydrous ammonia and downstream nitrogen |
11 | | fertilizer products for resale; for the purposes of |
12 | | this Section, "prevailing wage" means the hourly cash |
13 | | wages plus fringe benefits for training and |
14 | | apprenticeship programs approved by the U.S. |
15 | | Department of Labor, Bureau of Apprenticeship and |
16 | | Training, health and welfare, insurance, vacations and |
17 | | pensions paid generally, in the locality in which the |
18 | | work is being performed, to employees engaged in work |
19 | | of a similar character on public works; this paragraph |
20 | | (F) applies only to businesses that submit an |
21 | | application to the Department within 60 days after |
22 | | July 25, 2013 (the effective date of Public Act |
23 | | 98-109); or |
24 | | (G) the business intends to establish a new |
25 | | cultured cell material food production facility at a |
26 | | designated location in Illinois. As used in this |
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1 | | paragraph (G): |
2 | | "Cultured cell material food production facility" |
3 | | means a facility (i) at which cultured animal cell |
4 | | food is developed using animal cell culture |
5 | | technology, (ii) at which production processes occur |
6 | | that include the establishment of cell lines and cell |
7 | | banks, manufacturing controls, and all components and |
8 | | inputs, and (iii) that complies with all existing |
9 | | registrations, inspections, licensing, and approvals |
10 | | from all applicable and participating State and |
11 | | federal food agencies, including the Department of |
12 | | Agriculture, the Department of Public Health, and the |
13 | | United States Food and Drug Administration, to ensure |
14 | | that all food production is safe and lawful under |
15 | | provisions of the Federal Food, Drug and Cosmetic Act |
16 | | related to the development, production, and storage of |
17 | | cultured animal cell food. |
18 | | "New cultured cell material food production |
19 | | facility" means a newly constructed cultured cell |
20 | | material food production facility that is placed in |
21 | | service on or after June 7, 2023 ( the effective date of |
22 | | Public Act 103-9) this amendatory Act of the 103rd |
23 | | General Assembly or a newly constructed expansion of |
24 | | an existing cultured cell material food production |
25 | | facility, in a controlled environment, when the |
26 | | improvements are placed in service on or after June 7, |
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1 | | 2023 ( the effective date of Public Act 103-9) this |
2 | | amendatory Act of the 103rd General Assembly ; or and |
3 | | (H) (G) the business is an existing or planned |
4 | | grocery store, as that term is defined in Section 5 of |
5 | | the Grocery Initiative Act, and receives financial |
6 | | support under that Act within the 10 years before |
7 | | submitting its application under this Act; and |
8 | | (4) no later than 90 days after an application is |
9 | | submitted, the Department shall notify the applicant of |
10 | | the Department's determination of the qualification of the |
11 | | proposed High Impact Business under this Section. |
12 | | (b) Businesses designated as High Impact Businesses |
13 | | pursuant to subdivision (a)(3)(A) of this Section shall |
14 | | qualify for the credits and exemptions described in the |
15 | | following Acts: Section 9-222 and Section 9-222.1A of the |
16 | | Public Utilities Act, subsection (h) of Section 201 of the |
17 | | Illinois Income Tax Act, and Section 1d of the Retailers' |
18 | | Occupation Tax Act; provided that these credits and exemptions |
19 | | described in these Acts shall not be authorized until the |
20 | | minimum investments set forth in subdivision (a)(3)(A) of this |
21 | | Section have been placed in service in qualified properties |
22 | | and, in the case of the exemptions described in the Public |
23 | | Utilities Act and Section 1d of the Retailers' Occupation Tax |
24 | | Act, the minimum full-time equivalent jobs or full-time |
25 | | retained jobs set forth in subdivision (a)(3)(A) of this |
26 | | Section have been created or retained. Businesses designated |
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1 | | as High Impact Businesses under this Section shall also |
2 | | qualify for the exemption described in Section 5l of the |
3 | | Retailers' Occupation Tax Act. The credit provided in |
4 | | subsection (h) of Section 201 of the Illinois Income Tax Act |
5 | | shall be applicable to investments in qualified property as |
6 | | set forth in subdivision (a)(3)(A) of this Section. |
7 | | (b-5) Businesses designated as High Impact Businesses |
8 | | pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C), |
9 | | (a)(3)(D), and (a)(3)(G) , and (a)(3)(H) of this Section shall |
10 | | qualify for the credits and exemptions described in the |
11 | | following Acts: Section 51 of the Retailers' Occupation Tax |
12 | | Act, Section 9-222 and Section 9-222.1A of the Public |
13 | | Utilities Act, and subsection (h) of Section 201 of the |
14 | | Illinois Income Tax Act; however, the credits and exemptions |
15 | | authorized under Section 9-222 and Section 9-222.1A of the |
16 | | Public Utilities Act, and subsection (h) of Section 201 of the |
17 | | Illinois Income Tax Act shall not be authorized until the new |
18 | | electric generating facility, the new gasification facility, |
19 | | the new transmission facility, the new, expanded, or reopened |
20 | | coal mine, or the new cultured cell material food production |
21 | | facility, or the existing or planned grocery store is |
22 | | operational, except that a new electric generating facility |
23 | | whose primary fuel source is natural gas is eligible only for |
24 | | the exemption under Section 5l of the Retailers' Occupation |
25 | | Tax Act. |
26 | | (b-6) Businesses designated as High Impact Businesses |
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1 | | pursuant to subdivision (a)(3)(E) or (a)(3)(E-5) of this |
2 | | Section shall qualify for the exemptions described in Section |
3 | | 5l of the Retailers' Occupation Tax Act; any business so |
4 | | designated as a High Impact Business being, for purposes of |
5 | | this Section, a "Wind Energy Business". |
6 | | (b-7) Beginning on January 1, 2021, businesses designated |
7 | | as High Impact Businesses by the Department shall qualify for |
8 | | the High Impact Business construction jobs credit under |
9 | | subsection (h-5) of Section 201 of the Illinois Income Tax Act |
10 | | if the business meets the criteria set forth in subsection (i) |
11 | | of this Section. The total aggregate amount of credits awarded |
12 | | under the Blue Collar Jobs Act (Article 20 of Public Act 101-9) |
13 | | shall not exceed $20,000,000 in any State fiscal year. |
14 | | (c) High Impact Businesses located in federally designated |
15 | | foreign trade zones or sub-zones are also eligible for |
16 | | additional credits, exemptions and deductions as described in |
17 | | the following Acts: Section 9-221 and Section 9-222.1 of the |
18 | | Public Utilities Act; and subsection (g) of Section 201, and |
19 | | Section 203 of the Illinois Income Tax Act. |
20 | | (d) Except for businesses contemplated under subdivision |
21 | | (a)(3)(E), (a)(3)(E-5), or (a)(3)(G) , or (a)(3)(H) of this |
22 | | Section, existing Illinois businesses which apply for |
23 | | designation as a High Impact Business must provide the |
24 | | Department with the prospective plan for which 1,500 full-time |
25 | | retained jobs would be eliminated in the event that the |
26 | | business is not designated. |
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1 | | (e) Except for new businesses contemplated under |
2 | | subdivision (a)(3)(E) , or subdivision (a)(3)(G) , or |
3 | | subdivision (a)(3)(H) of this Section, new proposed facilities |
4 | | which apply for designation as High Impact Business must |
5 | | provide the Department with proof of alternative non-Illinois |
6 | | sites which would receive the proposed investment and job |
7 | | creation in the event that the business is not designated as a |
8 | | High Impact Business. |
9 | | (f) Except for businesses contemplated under subdivision |
10 | | (a)(3)(E) , or subdivision (a)(3)(G) , or subdivision (a)(3)(H) |
11 | | of this Section, in the event that a business is designated a |
12 | | High Impact Business and it is later determined after |
13 | | reasonable notice and an opportunity for a hearing as provided |
14 | | under the Illinois Administrative Procedure Act, that the |
15 | | business would have placed in service in qualified property |
16 | | the investments and created or retained the requisite number |
17 | | of jobs without the benefits of the High Impact Business |
18 | | designation, the Department shall be required to immediately |
19 | | revoke the designation and notify the Director of the |
20 | | Department of Revenue who shall begin proceedings to recover |
21 | | all wrongfully exempted State taxes with interest. The |
22 | | business shall also be ineligible for all State funded |
23 | | Department programs for a period of 10 years. |
24 | | (g) The Department shall revoke a High Impact Business |
25 | | designation if the participating business fails to comply with |
26 | | the terms and conditions of the designation. |
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1 | | (h) Prior to designating a business, the Department shall |
2 | | provide the members of the General Assembly and Commission on |
3 | | Government Forecasting and Accountability with a report |
4 | | setting forth the terms and conditions of the designation and |
5 | | guarantees that have been received by the Department in |
6 | | relation to the proposed business being designated. |
7 | | (i) High Impact Business construction jobs credit. |
8 | | Beginning on January 1, 2021, a High Impact Business may |
9 | | receive a tax credit against the tax imposed under subsections |
10 | | (a) and (b) of Section 201 of the Illinois Income Tax Act in an |
11 | | amount equal to 50% of the amount of the incremental income tax |
12 | | attributable to High Impact Business construction jobs credit |
13 | | employees employed in the course of completing a High Impact |
14 | | Business construction jobs project. However, the High Impact |
15 | | Business construction jobs credit may equal 75% of the amount |
16 | | of the incremental income tax attributable to High Impact |
17 | | Business construction jobs credit employees if the High Impact |
18 | | Business construction jobs credit project is located in an |
19 | | underserved area. |
20 | | The Department shall certify to the Department of Revenue: |
21 | | (1) the identity of taxpayers that are eligible for the High |
22 | | Impact Business construction jobs credit; and (2) the amount |
23 | | of High Impact Business construction jobs credits that are |
24 | | claimed pursuant to subsection (h-5) of Section 201 of the |
25 | | Illinois Income Tax Act in each taxable year. Any business |
26 | | entity that receives a High Impact Business construction jobs |
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1 | | credit shall maintain a certified payroll pursuant to |
2 | | subsection (j) of this Section. |
3 | | As used in this subsection (i): |
4 | | "High Impact Business construction jobs credit" means an |
5 | | amount equal to 50% (or 75% if the High Impact Business |
6 | | construction project is located in an underserved area) of the |
7 | | incremental income tax attributable to High Impact Business |
8 | | construction job employees. The total aggregate amount of |
9 | | credits awarded under the Blue Collar Jobs Act (Article 20 of |
10 | | Public Act 101-9) shall not exceed $20,000,000 in any State |
11 | | fiscal year |
12 | | "High Impact Business construction job employee" means a |
13 | | laborer or worker who is employed by a an Illinois contractor |
14 | | or subcontractor in the actual construction work on the site |
15 | | of a High Impact Business construction job project. |
16 | | "High Impact Business construction jobs project" means |
17 | | building a structure or building or making improvements of any |
18 | | kind to real property, undertaken and commissioned by a |
19 | | business that was designated as a High Impact Business by the |
20 | | Department. The term "High Impact Business construction jobs |
21 | | project" does not include the routine operation, routine |
22 | | repair, or routine maintenance of existing structures, |
23 | | buildings, or real property. |
24 | | "Incremental income tax" means the total amount withheld |
25 | | during the taxable year from the compensation of High Impact |
26 | | Business construction job employees. |
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1 | | "Underserved area" means a geographic area that meets one |
2 | | or more of the following conditions: |
3 | | (1) the area has a poverty rate of at least 20% |
4 | | according to the latest American Community Survey; |
5 | | (2) 35% or more of the families with children in the |
6 | | area are living below 130% of the poverty line, according |
7 | | to the latest American Community Survey; |
8 | | (3) at least 20% of the households in the area receive |
9 | | assistance under the Supplemental Nutrition Assistance |
10 | | Program (SNAP); or |
11 | | (4) the area has an average unemployment rate, as |
12 | | determined by the Illinois Department of Employment |
13 | | Security, that is more than 120% of the national |
14 | | unemployment average, as determined by the U.S. Department |
15 | | of Labor, for a period of at least 2 consecutive calendar |
16 | | years preceding the date of the application. |
17 | | (j) (Blank). Each contractor and subcontractor who is |
18 | | engaged in and executing a High Impact Business Construction |
19 | | jobs project, as defined under subsection (i) of this Section, |
20 | | for a business that is entitled to a credit pursuant to |
21 | | subsection (i) of this Section shall: |
22 | | (1) make and keep, for a period of 5 years from the |
23 | | date of the last payment made on or after June 5, 2019 (the |
24 | | effective date of Public Act 101-9) on a contract or |
25 | | subcontract for a High Impact Business Construction Jobs |
26 | | Project, records for all laborers and other workers |
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1 | | employed by the contractor or subcontractor on the |
2 | | project; the records shall include: |
3 | | (A) the worker's name; |
4 | | (B) the worker's address; |
5 | | (C) the worker's telephone number, if available; |
6 | | (D) the worker's social security number; |
7 | | (E) the worker's classification or |
8 | | classifications; |
9 | | (F) the worker's gross and net wages paid in each |
10 | | pay period; |
11 | | (G) the worker's number of hours worked each day; |
12 | | (H) the worker's starting and ending times of work |
13 | | each day; |
14 | | (I) the worker's hourly wage rate; |
15 | | (J) the worker's hourly overtime wage rate; |
16 | | (K) the worker's race and ethnicity; and |
17 | | (L) the worker's gender; |
18 | | (2) no later than the 15th day of each calendar month, |
19 | | provide a certified payroll for the immediately preceding |
20 | | month to the taxpayer in charge of the High Impact |
21 | | Business construction jobs project; within 5 business days |
22 | | after receiving the certified payroll, the taxpayer shall |
23 | | file the certified payroll with the Department of Labor |
24 | | and the Department of Commerce and Economic Opportunity; a |
25 | | certified payroll must be filed for only those calendar |
26 | | months during which construction on a High Impact Business |
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1 | | construction jobs project has occurred; the certified |
2 | | payroll shall consist of a complete copy of the records |
3 | | identified in paragraph (1) of this subsection (j), but |
4 | | may exclude the starting and ending times of work each |
5 | | day; the certified payroll shall be accompanied by a |
6 | | statement signed by the contractor or subcontractor or an |
7 | | officer, employee, or agent of the contractor or |
8 | | subcontractor which avers that: |
9 | | (A) he or she has examined the certified payroll |
10 | | records required to be submitted by the Act and such |
11 | | records are true and accurate; and |
12 | | (B) the contractor or subcontractor is aware that |
13 | | filing a certified payroll that he or she knows to be |
14 | | false is a Class A misdemeanor. |
15 | | A general contractor is not prohibited from relying on a |
16 | | certified payroll of a lower-tier subcontractor, provided the |
17 | | general contractor does not knowingly rely upon a |
18 | | subcontractor's false certification. |
19 | | Any contractor or subcontractor subject to this |
20 | | subsection, and any officer, employee, or agent of such |
21 | | contractor or subcontractor whose duty as an officer, |
22 | | employee, or agent it is to file a certified payroll under this |
23 | | subsection, who willfully fails to file such a certified |
24 | | payroll on or before the date such certified payroll is |
25 | | required by this paragraph to be filed and any person who |
26 | | willfully files a false certified payroll that is false as to |
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1 | | any material fact is in violation of this Act and guilty of a |
2 | | Class A misdemeanor. |
3 | | The taxpayer in charge of the project shall keep the |
4 | | records submitted in accordance with this subsection on or |
5 | | after June 5, 2019 (the effective date of Public Act 101-9) for |
6 | | a period of 5 years from the date of the last payment for work |
7 | | on a contract or subcontract for the High Impact Business |
8 | | construction jobs project. |
9 | | The records submitted in accordance with this subsection |
10 | | shall be considered public records, except an employee's |
11 | | address, telephone number, and social security number, and |
12 | | made available in accordance with the Freedom of Information |
13 | | Act. The Department of Labor shall share the information with |
14 | | the Department in order to comply with the awarding of a High |
15 | | Impact Business construction jobs credit. A contractor, |
16 | | subcontractor, or public body may retain records required |
17 | | under this Section in paper or electronic format. |
18 | | (j-5) Annually, until construction is completed, a company |
19 | | seeking High Impact Business Construction Job credits shall |
20 | | submit a report that, at a minimum, describes the projected |
21 | | project scope, timeline, and anticipated budget. Once the |
22 | | project has commenced, the annual report shall include actual |
23 | | data for the prior year as well as projections for each |
24 | | additional year through completion of the project. The |
25 | | Department shall issue detailed reporting guidelines |
26 | | prescribing the requirements of construction-related reports. |
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1 | | In order to receive credit for construction expenses, the |
2 | | company must provide the Department of Commerce and Economic |
3 | | Opportunity with evidence that a certified third-party |
4 | | executed an Agreed-Upon Procedure (AUP) verifying the |
5 | | construction expenses or accept the standard construction wage |
6 | | expense estimated by the Department of Commerce and Economic |
7 | | Opportunity. |
8 | | Upon review of the final project scope, timeline, budget, |
9 | | and AUP, the Department shall issue a tax credit certificate |
10 | | reflecting a percentage of the total construction job wages |
11 | | paid throughout the completion of the project. |
12 | | (k) Upon 7 business days' notice, each taxpayer contractor |
13 | | and subcontractor shall make available to each State agency |
14 | | and to federal, State, or local law enforcement agencies and |
15 | | prosecutors for inspection and copying at a location within |
16 | | this State during reasonable hours, the report under this |
17 | | subsection (j-5) records identified in this subsection (j) to |
18 | | the taxpayer in charge of the High Impact Business |
19 | | construction jobs project, its officers and agents, the |
20 | | Director of the Department of Labor and his or her deputies and |
21 | | agents, and to federal, State, or local law enforcement |
22 | | agencies and prosecutors . |
23 | | (l) The changes made to this Section by Public Act |
24 | | 102-1125 this amendatory Act of the 102nd General Assembly , |
25 | | other than the changes in subsection (a), apply to High Impact |
26 | | Businesses high impact businesses that submit applications on |
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1 | | or after February 3, 2023 ( the effective date of Public Act |
2 | | 102-1125) this amendatory Act of the 102nd General Assembly . |
3 | | (Source: P.A. 102-108, eff. 1-1-22; 102-558, eff. 8-20-21; |
4 | | 102-605, eff. 8-27-21; 102-662, eff. 9-15-21; 102-673, eff. |
5 | | 11-30-21; 102-813, eff. 5-13-22; 102-1125, eff. 2-3-23; 103-9, |
6 | | eff. 6-7-23; 103-561, eff. 1-1-24; revised 3-15-24.) |
7 | | (20 ILCS 655/13) |
8 | | Sec. 13. Enterprise Zone construction jobs credit. |
9 | | (a) Beginning on January 1, 2021, a business entity in a |
10 | | certified Enterprise Zone that makes a capital investment of |
11 | | at least $10,000,000 in an Enterprise Zone construction jobs |
12 | | project may receive an Enterprise Zone construction jobs |
13 | | credit against the tax imposed under subsections (a) and (b) |
14 | | of Section 201 of the Illinois Income Tax Act in an amount |
15 | | equal to 50% of the amount of the incremental income tax |
16 | | attributable to Enterprise Zone construction jobs credit |
17 | | employees employed in the course of completing an Enterprise |
18 | | Zone construction jobs project. However, the Enterprise Zone |
19 | | construction jobs credit may equal 75% of the amount of the |
20 | | incremental income tax attributable to Enterprise Zone |
21 | | construction jobs credit employees if the project is located |
22 | | in an underserved area. |
23 | | (b) A business entity seeking a credit under this Section |
24 | | must submit an application to the Department and must receive |
25 | | approval from the designating municipality or county and the |
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1 | | Department for the Enterprise Zone construction jobs credit |
2 | | project. The application must describe the nature and benefit |
3 | | of the project to the certified Enterprise Zone and its |
4 | | potential contributors. The total aggregate amount of credits |
5 | | awarded under the Blue Collar Jobs Act (Article 20 of Public |
6 | | Act 101-9) shall not exceed $20,000,000 in any State fiscal |
7 | | year. |
8 | | Within 45 days after receipt of an application, the |
9 | | Department shall give notice to the applicant as to whether |
10 | | the application has been approved or disapproved. If the |
11 | | Department disapproves the application, it shall specify the |
12 | | reasons for this decision and allow 60 days for the applicant |
13 | | to amend and resubmit its application. The Department shall |
14 | | provide assistance upon request to applicants. Resubmitted |
15 | | applications shall receive the Department's approval or |
16 | | disapproval within 30 days after the application is |
17 | | resubmitted. Those resubmitted applications satisfying initial |
18 | | Department objectives shall be approved unless reasonable |
19 | | circumstances warrant disapproval. |
20 | | On an annual basis, the designated zone organization shall |
21 | | furnish a statement to the Department on the programmatic and |
22 | | financial status of any approved project and an audited |
23 | | financial statement of the project. |
24 | | The Department shall certify to the Department of Revenue |
25 | | the identity of taxpayers who are eligible for the credits and |
26 | | the amount of credits that are claimed pursuant to |
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1 | | subparagraph (8) of subsection (f) of Section 201 the Illinois |
2 | | Income Tax Act. |
3 | | The Enterprise Zone construction jobs credit project must |
4 | | be undertaken by the business entity in the course of |
5 | | completing a project that complies with the criteria contained |
6 | | in Section 4 of this Act and is undertaken in a certified |
7 | | Enterprise Zone. The Department shall adopt any necessary |
8 | | rules for the implementation of this subsection (b). |
9 | | (c) (Blank). Any business entity that receives an |
10 | | Enterprise Zone construction jobs credit shall maintain a |
11 | | certified payroll pursuant to subsection (d) of this Section. |
12 | | (d) Annually, until construction is completed, a company |
13 | | seeking Enterprise Zone construction job credits shall submit |
14 | | a report that, at a minimum, describes the projected project |
15 | | scope, timeline, and anticipated budget. Once the project has |
16 | | commenced, the annual report shall include actual data for the |
17 | | prior year as well as projections for each additional year |
18 | | through completion of the project. The Department shall issue |
19 | | detailed reporting guidelines prescribing the requirements of |
20 | | construction-related reports. |
21 | | In order to receive credit for construction expenses, the |
22 | | company must provide the Department of Commerce and Economic |
23 | | Opportunity with evidence that a certified third-party |
24 | | executed an Agreed-Upon Procedure (AUP) verifying the |
25 | | construction expenses or accept the standard construction wage |
26 | | expense estimated by the Department of Commerce and Economic |
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1 | | Opportunity. |
2 | | Upon review of the final project scope, timeline, budget, |
3 | | and AUP, the Department shall issue a tax credit certificate |
4 | | reflecting a percentage of the total construction job wages |
5 | | paid throughout the completion of the project. |
6 | | Each contractor and subcontractor who is engaged in and is |
7 | | executing an Enterprise Zone construction jobs credit project |
8 | | for a business that is entitled to a credit pursuant to this |
9 | | Section shall: |
10 | | (1) make and keep, for a period of 5 years from the |
11 | | date of the last payment made on or after June 5, 2019 (the |
12 | | effective date of Public Act 101-9) on a contract or |
13 | | subcontract for an Enterprise Zone construction jobs |
14 | | credit project, records for all laborers and other workers |
15 | | employed by them on the project; the records shall |
16 | | include: |
17 | | (A) the worker's name; |
18 | | (B) the worker's address; |
19 | | (C) the worker's telephone number, if available; |
20 | | (D) the worker's social security number; |
21 | | (E) the worker's classification or |
22 | | classifications; |
23 | | (F) the worker's gross and net wages paid in each |
24 | | pay period; |
25 | | (G) the worker's number of hours worked each day; |
26 | | (H) the worker's starting and ending times of work |
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1 | | each day; |
2 | | (I) the worker's hourly wage rate; and |
3 | | (J) the worker's hourly overtime wage rate; |
4 | | (2) no later than the 15th day of each calendar month, |
5 | | provide a certified payroll for the immediately preceding |
6 | | month to the taxpayer in charge of the project; within 5 |
7 | | business days after receiving the certified payroll, the |
8 | | taxpayer shall file the certified payroll with the |
9 | | Department of Labor and the Department of Commerce and |
10 | | Economic Opportunity; a certified payroll must be filed |
11 | | for only those calendar months during which construction |
12 | | on an Enterprise Zone construction jobs project has |
13 | | occurred; the certified payroll shall consist of a |
14 | | complete copy of the records identified in paragraph (1) |
15 | | of this subsection (d), but may exclude the starting and |
16 | | ending times of work each day; the certified payroll shall |
17 | | be accompanied by a statement signed by the contractor or |
18 | | subcontractor or an officer, employee, or agent of the |
19 | | contractor or subcontractor which avers that: |
20 | | (A) he or she has examined the certified payroll |
21 | | records required to be submitted by the Act and such |
22 | | records are true and accurate; and |
23 | | (B) the contractor or subcontractor is aware that |
24 | | filing a certified payroll that he or she knows to be |
25 | | false is a Class A misdemeanor. |
26 | | A general contractor is not prohibited from relying on a |
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1 | | certified payroll of a lower-tier subcontractor, provided the |
2 | | general contractor does not knowingly rely upon a |
3 | | subcontractor's false certification. |
4 | | Any contractor or subcontractor subject to this |
5 | | subsection, and any officer, employee, or agent of such |
6 | | contractor or subcontractor whose duty as an officer, |
7 | | employee, or agent it is to file a certified payroll under this |
8 | | subsection, who willfully fails to file such a certified |
9 | | payroll on or before the date such certified payroll is |
10 | | required by this paragraph to be filed and any person who |
11 | | willfully files a false certified payroll that is false as to |
12 | | any material fact is in violation of this Act and guilty of a |
13 | | Class A misdemeanor. |
14 | | The taxpayer in charge of the project shall keep the |
15 | | records submitted in accordance with this subsection on or |
16 | | after June 5, 2019 (the effective date of Public Act 101-9) for |
17 | | a period of 5 years from the date of the last payment for work |
18 | | on a contract or subcontract for the project. |
19 | | The records submitted in accordance with this subsection |
20 | | shall be considered public records, except an employee's |
21 | | address, telephone number, and social security number, and |
22 | | made available in accordance with the Freedom of Information |
23 | | Act. The Department of Labor shall accept any reasonable |
24 | | submissions by the contractor that meet the requirements of |
25 | | this subsection and shall share the information with the |
26 | | Department in order to comply with the awarding of Enterprise |
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1 | | Zone construction jobs credits. A contractor, subcontractor, |
2 | | or public body may retain records required under this Section |
3 | | in paper or electronic format. |
4 | | Upon 7 business days' notice, the taxpayer contractor and |
5 | | each subcontractor shall make available to any State agency |
6 | | and to federal, State, or local law enforcement agencies and |
7 | | prosecutors for inspection and copying at a location within |
8 | | this State during reasonable hours, the report under this |
9 | | subsection (d) records identified in paragraph (1) of this |
10 | | subsection to the taxpayer in charge of the project, its |
11 | | officers and agents, the Director of Labor and his or her |
12 | | deputies and agents, and to federal, State, or local law |
13 | | enforcement agencies and prosecutors . |
14 | | (e) As used in this Section: |
15 | | "Enterprise Zone construction jobs credit" means an amount |
16 | | equal to 50% (or 75% if the project is located in an |
17 | | underserved area) of the incremental income tax attributable |
18 | | to Enterprise Zone construction jobs credit employees. |
19 | | "Enterprise Zone construction jobs credit employee" means |
20 | | a laborer or worker who is employed by a an Illinois contractor |
21 | | or subcontractor in the actual construction work on the site |
22 | | of an Enterprise Zone construction jobs credit project. |
23 | | "Enterprise Zone construction jobs credit project" means |
24 | | building a structure or building or making improvements of any |
25 | | kind to real property commissioned and paid for by a business |
26 | | that has applied and been approved for an Enterprise Zone |
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1 | | construction jobs credit pursuant to this Section. "Enterprise |
2 | | Zone construction jobs credit project" does not include the |
3 | | routine operation, routine repair, or routine maintenance of |
4 | | existing structures, buildings, or real property. |
5 | | "Incremental income tax" means the total amount withheld |
6 | | during the taxable year from the compensation of Enterprise |
7 | | Zone construction jobs credit employees. |
8 | | "Underserved area" means a geographic area that meets one |
9 | | or more of the following conditions: |
10 | | (1) the area has a poverty rate of at least 20% |
11 | | according to the latest American Community Survey; |
12 | | (2) 35% or more of the families with children in the |
13 | | area are living below 130% of the poverty line, according |
14 | | to the latest American Community Survey; |
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 | | (Source: P.A. 101-9, eff. 6-5-19; 102-108, eff. 1-1-22; |
25 | | 102-558, eff. 8-20-21 .) |
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1 | | Section 15. The Reimagining Energy and Vehicles in |
2 | | Illinois Act is amended by changing Sections 10, 20, 35, 45, |
3 | | 65, 95, and 105 as follows: |
4 | | (20 ILCS 686/10) |
5 | | Sec. 10. Definitions. As used in this Act: |
6 | | "Advanced battery" means a battery that consists of a |
7 | | battery cell that can be integrated into a module, pack, or |
8 | | system to be used in energy storage applications, including a |
9 | | battery used in an electric vehicle or the electric grid. |
10 | | "Advanced battery component" means a component of an |
11 | | advanced battery, including materials, enhancements, |
12 | | enclosures, anodes, cathodes, electrolytes, cells, and other |
13 | | associated technologies that comprise an advanced battery. |
14 | | "Agreement" means the agreement between a taxpayer and the |
15 | | Department under the provisions of Section 45 of this Act. |
16 | | "Applicant" means a taxpayer that (i) operates a business |
17 | | in Illinois or is planning to locate a business within the |
18 | | State of Illinois and (ii) is engaged in interstate or |
19 | | intrastate commerce as an electric vehicle manufacturer, an |
20 | | electric vehicle component parts manufacturer, or an electric |
21 | | vehicle power supply equipment manufacturer. For applications |
22 | | for credits under this Act that are submitted on or after the |
23 | | effective date of this amendatory Act of the 102nd General |
24 | | Assembly, "applicant" also includes a taxpayer that (i) |
25 | | operates a business in Illinois or is planning to locate a |
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1 | | business within the State of Illinois and (ii) is engaged in |
2 | | interstate or intrastate commerce as a renewable energy |
3 | | manufacturer. "Applicant" does not include a taxpayer who |
4 | | closes or substantially reduces by more than 50% operations at |
5 | | one location in the State and relocates substantially the same |
6 | | operation to another location in the State. This does not |
7 | | prohibit a Taxpayer from expanding its operations at another |
8 | | location in the State. This also does not prohibit a Taxpayer |
9 | | from moving its operations from one location in the State to |
10 | | another location in the State for the purpose of expanding the |
11 | | operation, provided that the Department determines that |
12 | | expansion cannot reasonably be accommodated within the |
13 | | municipality or county in which the business is located, or, |
14 | | in the case of a business located in an incorporated area of |
15 | | the county, within the county in which the business is |
16 | | located, after conferring with the chief elected official of |
17 | | the municipality or county and taking into consideration any |
18 | | evidence offered by the municipality or county regarding the |
19 | | ability to accommodate expansion within the municipality or |
20 | | county. |
21 | | "Battery raw materials" means the raw and processed form |
22 | | of a mineral, metal, chemical, or other material used in an |
23 | | advanced battery component. |
24 | | "Battery raw materials refining service provider" means a |
25 | | business that operates a facility that filters, sifts, and |
26 | | treats battery raw materials for use in an advanced battery. |
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1 | | "Battery recycling and reuse manufacturer" means a |
2 | | manufacturer that is primarily engaged in the recovery, |
3 | | retrieval, processing, recycling, or recirculating of battery |
4 | | raw materials for new use in electric vehicle batteries. |
5 | | "Capital improvements" means the purchase, renovation, |
6 | | rehabilitation, or construction of permanent tangible land, |
7 | | buildings, structures, equipment, and furnishings in an |
8 | | approved project sited in Illinois and expenditures for goods |
9 | | or services that are normally capitalized, including |
10 | | organizational costs and research and development costs |
11 | | incurred in Illinois. For land, buildings, structures, and |
12 | | equipment that are leased, the lease must equal or exceed the |
13 | | term of the agreement, and the cost of the property shall be |
14 | | determined from the present value, using the corporate |
15 | | interest rate prevailing at the time of the application, of |
16 | | the lease payments. |
17 | | "Credit" means either a "REV Illinois Credit" or a "REV |
18 | | Construction Jobs Credit" agreed to between the Department and |
19 | | applicant under this Act. |
20 | | "Department" means the Department of Commerce and Economic |
21 | | Opportunity. |
22 | | "Director" means the Director of Commerce and Economic |
23 | | Opportunity. |
24 | | "Electric vehicle" means a vehicle that is exclusively |
25 | | powered by and refueled by electricity, including electricity |
26 | | generated through a hydrogen fuel cells or solar technology. |
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1 | | "Electric vehicle" , except when referencing aircraft with |
2 | | hybrid electric propulsion systems, does not include hybrid |
3 | | electric vehicles, electric bicycles, or extended-range |
4 | | electric vehicles that are also equipped with conventional |
5 | | fueled propulsion or auxiliary engines. |
6 | | "Electric vehicle manufacturer" means a new or existing |
7 | | manufacturer that is primarily focused on reequipping, |
8 | | expanding, or establishing a manufacturing facility in |
9 | | Illinois that produces electric vehicles as defined in this |
10 | | Section. |
11 | | "Electric vehicle component parts manufacturer" means a |
12 | | new or existing manufacturer that is focused on reequipping, |
13 | | expanding, or establishing a manufacturing facility in |
14 | | Illinois that produces parts or accessories used in electric |
15 | | vehicles, as defined by this Section, including advanced |
16 | | battery component parts. The changes to this definition of |
17 | | "electric vehicle component parts manufacturer" apply to |
18 | | agreements under this Act that are entered into on or after the |
19 | | effective date of this amendatory Act of the 102nd General |
20 | | Assembly. |
21 | | "Electric vehicle power supply equipment" means the |
22 | | equipment used specifically for the purpose of delivering |
23 | | electricity to an electric vehicle, including hydrogen fuel |
24 | | cells or solar refueling infrastructure. |
25 | | "Electric vehicle power supply manufacturer" means a new |
26 | | or existing manufacturer that is focused on reequipping, |
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1 | | expanding, or establishing a manufacturing facility in |
2 | | Illinois that produces electric vehicle power supply equipment |
3 | | used for the purpose of delivering electricity to an electric |
4 | | vehicle, including hydrogen fuel cell or solar refueling |
5 | | infrastructure. |
6 | | "Electric vehicle powertrain technology" means equipment |
7 | | used to convert electricity for use in aerospace propulsion. |
8 | | "Electric vehicle powertrain technology manufacturer" |
9 | | means a new or existing manufacturer that is focused on |
10 | | reequipping, expanding or establishing a manufacturing |
11 | | facility in Illinois that develops and validates electric |
12 | | vehicle powertrain technology for use in aerospace propulsion. |
13 | | "Electric vertical takeoff and landing (eVTOL) aircraft" |
14 | | means a fully electric aircraft that lands and takes off |
15 | | vertically. |
16 | | "Energy Transition Area" means a county with less than |
17 | | 100,000 people or a municipality that contains one or more of |
18 | | the following: |
19 | | (1) a fossil fuel plant that was retired from service |
20 | | or has significant reduced service within 6 years before |
21 | | the time of the application or will be retired or have |
22 | | service significantly reduced within 6 years following the |
23 | | time of the application; or |
24 | | (2) a coal mine that was closed or had operations |
25 | | significantly reduced within 6 years before the time of |
26 | | the application or is anticipated to be closed or have |
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1 | | operations significantly reduced within 6 years following |
2 | | the time of the application. |
3 | | "Full-time employee" means an individual who is employed |
4 | | for consideration for at least 35 hours each week or who |
5 | | renders any other standard of service generally accepted by |
6 | | industry custom or practice as full-time employment. An |
7 | | individual for whom a W-2 is issued by a Professional Employer |
8 | | Organization (PEO) is a full-time employee if employed in the |
9 | | service of the applicant for consideration for at least 35 |
10 | | hours each week. |
11 | | "Green steel manufacturer" means an entity that |
12 | | manufactures steel without the use of fossil fuels and with |
13 | | zero net carbon emission. |
14 | | "Incremental income tax" means the total amount withheld |
15 | | during the taxable year from the compensation of new employees |
16 | | and, if applicable, retained employees under Article 7 of the |
17 | | Illinois Income Tax Act arising from employment at a project |
18 | | that is the subject of an agreement. |
19 | | "Institution of higher education" or "institution" means |
20 | | any accredited public or private university, college, |
21 | | community college, business, technical, or vocational school, |
22 | | or other accredited educational institution offering degrees |
23 | | and instruction beyond the secondary school level. |
24 | | "Minority person" means a minority person as defined in |
25 | | the Business Enterprise for Minorities, Women, and Persons |
26 | | with Disabilities Act. |
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1 | | "New employee" means a newly-hired full-time employee |
2 | | employed to work at the project site and whose work is directly |
3 | | related to the project. |
4 | | "Noncompliance date" means, in the case of a taxpayer that |
5 | | is not complying with the requirements of the agreement or the |
6 | | provisions of this Act, the day following the last date upon |
7 | | which the taxpayer was in compliance with the requirements of |
8 | | the agreement and the provisions of this Act, as determined by |
9 | | the Director, pursuant to Section 70. |
10 | | "Pass-through entity" means an entity that is exempt from |
11 | | the tax under subsection (b) or (c) of Section 205 of the |
12 | | Illinois Income Tax Act. |
13 | | "Placed in service" means the state or condition of |
14 | | readiness, availability for a specifically assigned function, |
15 | | and the facility is constructed and ready to conduct its |
16 | | facility operations to manufacture goods. |
17 | | "Professional employer organization" (PEO) means an |
18 | | employee leasing company, as defined in Section 206.1 of the |
19 | | Illinois Unemployment Insurance Act. |
20 | | "Program" means the Reimagining Energy and Vehicles in |
21 | | Illinois Program (the REV Illinois Program) established in |
22 | | this Act. |
23 | | "Project" or "REV Illinois Project" means a for-profit |
24 | | economic development activity for the manufacture of electric |
25 | | vehicles, electric vehicle component parts, electric vehicle |
26 | | power supply equipment, or renewable energy products, which is |
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1 | | designated by the Department as a REV Illinois Project and is |
2 | | the subject of an agreement. |
3 | | "Recycling facility" means a location at which the |
4 | | taxpayer disposes of batteries and other component parts in |
5 | | manufacturing of electric vehicles, electric vehicle component |
6 | | parts, or electric vehicle power supply equipment. |
7 | | "Related member" means a person that, with respect to the |
8 | | taxpayer during any portion of the taxable year, is any one of |
9 | | the following: |
10 | | (1) An individual stockholder, if the stockholder and |
11 | | the members of the stockholder's family (as defined in |
12 | | Section 318 of the Internal Revenue Code) own directly, |
13 | | indirectly, beneficially, or constructively, in the |
14 | | aggregate, at least 50% of the value of the taxpayer's |
15 | | outstanding stock. |
16 | | (2) A partnership, estate, trust and any partner or |
17 | | beneficiary, if the partnership, estate, or trust, and its |
18 | | partners or beneficiaries own directly, indirectly, |
19 | | beneficially, or constructively, in the aggregate, at |
20 | | least 50% of the profits, capital, stock, or value of the |
21 | | taxpayer. |
22 | | (3) A corporation, and any party related to the |
23 | | corporation in a manner that would require an attribution |
24 | | of stock from the corporation under the attribution rules |
25 | | of Section 318 of the Internal Revenue Code, if the |
26 | | Taxpayer owns directly, indirectly, beneficially, or |
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1 | | constructively at least 50% of the value of the |
2 | | corporation's outstanding stock. |
3 | | (4) A corporation and any party related to that |
4 | | corporation in a manner that would require an attribution |
5 | | of stock from the corporation to the party or from the |
6 | | party to the corporation under the attribution rules of |
7 | | Section 318 of the Internal Revenue Code, if the |
8 | | corporation and all such related parties own in the |
9 | | aggregate at least 50% of the profits, capital, stock, or |
10 | | value of the taxpayer. |
11 | | (5) A person to or from whom there is an attribution of |
12 | | stock ownership in accordance with Section 1563(e) of the |
13 | | Internal Revenue Code, except, for purposes of determining |
14 | | whether a person is a related member under this paragraph, |
15 | | 20% shall be substituted for 5% wherever 5% appears in |
16 | | Section 1563(e) of the Internal Revenue Code. |
17 | | "Renewable energy" means energy produced using the |
18 | | materials and sources of energy through which renewable energy |
19 | | resources are generated. |
20 | | "Renewable energy manufacturer" means a manufacturer whose |
21 | | primary function is to manufacture or assemble: (i) equipment, |
22 | | systems, or products used to produce renewable or nuclear |
23 | | energy; (ii) products used for energy conservation, storage, |
24 | | or grid efficiency purposes; or (iii) component parts for that |
25 | | equipment or those systems or products. |
26 | | "Renewable energy resources" has the meaning ascribed to |
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1 | | that term in Section 1-10 of the Illinois Power Agency Act. |
2 | | "Research and development" means work directed toward the |
3 | | innovation, introduction, and improvement of products and |
4 | | processes. "Research and development" includes all levels of |
5 | | research and development that directly result in the potential |
6 | | manufacturing and marketability of renewable energy, electric |
7 | | vehicles, electric vehicle component parts, and electric or |
8 | | hybrid aircraft. |
9 | | "Retained employee" means a full-time employee employed by |
10 | | the taxpayer prior to the term of the Agreement who continues |
11 | | to be employed during the term of the agreement whose job |
12 | | duties are directly related to the project. The term "retained |
13 | | employee" does not include any individual who has a direct or |
14 | | an indirect ownership interest of at least 5% in the profits, |
15 | | equity, capital, or value of the taxpayer or a child, |
16 | | grandchild, parent, or spouse, other than a spouse who is |
17 | | legally separated from the individual, of any individual who |
18 | | has a direct or indirect ownership of at least 5% in the |
19 | | profits, equity, capital, or value of the taxpayer. The |
20 | | changes to this definition of "retained employee" apply to |
21 | | agreements for credits under this Act that are entered into on |
22 | | or after the effective date of this amendatory Act of the 102nd |
23 | | General Assembly. |
24 | | "REV Illinois credit" means a credit agreed to between the |
25 | | Department and the applicant under this Act that is based on |
26 | | the incremental income tax attributable to new employees and, |
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1 | | if applicable, retained employees, and on training costs for |
2 | | such employees at the applicant's project. |
3 | | "REV construction jobs credit" means a credit agreed to |
4 | | between the Department and the applicant under this Act that |
5 | | is based on the incremental income tax attributable to |
6 | | construction wages paid in connection with construction of the |
7 | | project facilities. |
8 | | "Statewide baseline" means the total number of full-time |
9 | | employees of the applicant and any related member employed by |
10 | | such entities at the time of application for incentives under |
11 | | this Act. |
12 | | "Taxpayer" means an individual, corporation, partnership, |
13 | | or other entity that has a legal obligation to pay Illinois |
14 | | income taxes and file an Illinois income tax return. |
15 | | "Training costs" means costs incurred to upgrade the |
16 | | technological skills of full-time employees in Illinois and |
17 | | includes: curriculum development; training materials |
18 | | (including scrap product costs); trainee domestic travel |
19 | | expenses; instructor costs (including wages, fringe benefits, |
20 | | tuition and domestic travel expenses); rent, purchase or lease |
21 | | of training equipment; and other usual and customary training |
22 | | costs. "Training costs" do not include costs associated with |
23 | | travel outside the United States (unless the Taxpayer receives |
24 | | prior written approval for the travel by the Director based on |
25 | | a showing of substantial need or other proof the training is |
26 | | not reasonably available within the United States), wages and |
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1 | | fringe benefits of employees during periods of training, or |
2 | | administrative cost related to full-time employees of the |
3 | | taxpayer. |
4 | | "Underserved area" means any geographic area areas as |
5 | | defined in Section 5-5 of the Economic Development for a |
6 | | Growing Economy Tax Credit Act. |
7 | | (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22; |
8 | | 102-1112, eff. 12-21-22; 102-1125, eff. 2-3-23.) |
9 | | (20 ILCS 686/20) |
10 | | Sec. 20. REV Illinois Program; project applications. |
11 | | (a) The Reimagining Energy and Vehicles in Illinois (REV |
12 | | Illinois) Program is hereby established and shall be |
13 | | administered by the Department. The Program will provide |
14 | | financial incentives to any one or more of the following: (1) |
15 | | eligible manufacturers of electric vehicles, electric vehicle |
16 | | component parts, and electric vehicle power supply equipment; |
17 | | (2) battery recycling and reuse manufacturers; (3) battery raw |
18 | | materials refining service providers; or (4) renewable energy |
19 | | manufacturers. |
20 | | (b) Any taxpayer planning a project to be located in |
21 | | Illinois may request consideration for designation of its |
22 | | project as a REV Illinois Project, by formal written letter of |
23 | | request or by formal application to the Department, in which |
24 | | the applicant states its intent to make at least a specified |
25 | | level of investment and intends to hire a specified number of |
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1 | | full-time employees at a designated location in Illinois. As |
2 | | circumstances require, the Department shall require a formal |
3 | | application from an applicant and a formal letter of request |
4 | | for assistance. |
5 | | (c) In order to qualify for credits under the REV Illinois |
6 | | Program, an applicant must: |
7 | | (1) if the applicant is an electric vehicle |
8 | | manufacturer: |
9 | | (A) make an investment of at least $1,500,000,000 |
10 | | in capital improvements at the project site; |
11 | | (B) to be placed in service within the State |
12 | | within a 60-month period after approval of the |
13 | | application; and |
14 | | (C) create at least 500 new full-time employee |
15 | | jobs; or |
16 | | (2) if the applicant is an electric vehicle component |
17 | | parts manufacturer , or a renewable energy manufacturer , a |
18 | | green steel manufacturer, or an entity engaged in |
19 | | research, development, or manufacturing of eVTOL aircraft |
20 | | or hybrid-electric or fully electric propulsion systems |
21 | | for airliners : |
22 | | (A) make an investment of at least $300,000,000 in |
23 | | capital improvements at the project site; |
24 | | (B) manufacture one or more parts that are |
25 | | primarily used for electric vehicle , renewable energy, |
26 | | or green steel manufacturing; |
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1 | | (C) to be placed in service within the State |
2 | | within a 60-month period after approval of the |
3 | | application; and |
4 | | (D) create at least 150 new full-time employee |
5 | | jobs; or |
6 | | (3) if the agreement is entered into before the |
7 | | effective date of this amendatory Act of the 102nd General |
8 | | Assembly and the applicant is an electric vehicle |
9 | | manufacturer, an electric vehicle power supply equipment |
10 | | manufacturer, an electric vehicle component part |
11 | | manufacturer , renewable energy manufacturer, or green |
12 | | steel manufacturer that does not qualify under paragraph |
13 | | (2) above, a battery recycling and reuse manufacturer, or |
14 | | a battery raw materials refining service provider: |
15 | | (A) make an investment of at least $20,000,000 in |
16 | | capital improvements at the project site; |
17 | | (B) for electric vehicle component part |
18 | | manufacturers, manufacture one or more parts that are |
19 | | primarily used for electric vehicle manufacturing; |
20 | | (C) to be placed in service within the State |
21 | | within a 48-month period after approval of the |
22 | | application; and |
23 | | (D) create at least 50 new full-time employee |
24 | | jobs; or |
25 | | (3.1) if the agreement is entered into on or after the |
26 | | effective date of this amendatory Act of the 102nd General |
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1 | | Assembly and the applicant is an electric vehicle |
2 | | manufacturer, an electric vehicle power supply equipment |
3 | | manufacturer, an electric vehicle component part |
4 | | manufacturer , a renewable energy manufacturer, a green |
5 | | steel manufacturer, or an entity engaged in research, |
6 | | development, or manufacturing of eVTOL aircraft or |
7 | | hybrid-electric or fully electric propulsion systems for |
8 | | airliners that does not qualify under paragraph (2) above , |
9 | | a renewable energy manufacturer that does not qualify |
10 | | under paragraph (2) above, a battery recycling and reuse |
11 | | manufacturer, or a battery raw materials refining service |
12 | | provider: |
13 | | (A) make an investment of at least $2,500,000 in |
14 | | capital improvements at the project site; |
15 | | (B) in the case of electric vehicle component part |
16 | | manufacturers, manufacture one or more parts that are |
17 | | used for electric vehicle manufacturing; |
18 | | (C) to be placed in service within the State |
19 | | within a 48-month period after approval of the |
20 | | application; and |
21 | | (D) create the lesser of 50 new full-time employee |
22 | | jobs or new full-time employee jobs equivalent to 10% |
23 | | of the Statewide baseline applicable to the taxpayer |
24 | | and any related member at the time of application; or |
25 | | (4) if the agreement is entered into before the |
26 | | effective date of this amendatory Act of the 102nd General |
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1 | | Assembly and the applicant is an electric vehicle |
2 | | manufacturer or electric vehicle component parts |
3 | | manufacturer with existing operations within Illinois that |
4 | | intends to convert or expand, in whole or in part, the |
5 | | existing facility from traditional manufacturing to |
6 | | primarily electric vehicle manufacturing, electric vehicle |
7 | | component parts manufacturing, an or electric vehicle |
8 | | power supply equipment manufacturing , or a green steel |
9 | | manufacturer : |
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 | | (4.1) if the agreement is entered into on or after the |
20 | | effective date of this amendatory Act of the 102nd General |
21 | | Assembly and the applicant (i) is an electric vehicle |
22 | | manufacturer, an electric vehicle component parts |
23 | | manufacturer, or a renewable energy manufacturer , a green |
24 | | steel manufacturer, or an entity engaged in research, |
25 | | development, or manufacturing of eVTOL aircraft or hybrid |
26 | | electric or fully electric propulsion systems for |
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1 | | airliners and (ii) has existing operations within Illinois |
2 | | that the applicant intends to convert or expand, in whole |
3 | | or in part, from traditional manufacturing to electric |
4 | | vehicle manufacturing, electric vehicle component parts |
5 | | manufacturing, renewable energy manufacturing, or electric |
6 | | vehicle power supply equipment manufacturing: |
7 | | (A) make an investment of at least $100,000,000 in |
8 | | capital improvements at the project site; |
9 | | (B) to be placed in service within the State |
10 | | within a 60-month period after approval of the |
11 | | application; and |
12 | | (C) create the lesser of 50 new full-time employee |
13 | | jobs or new full-time employee jobs equivalent to 10% |
14 | | of the Statewide baseline applicable to the taxpayer |
15 | | and any related member at the time of application; or |
16 | | (5) if the agreement is entered into on or after the |
17 | | effective date of the changes made to this Section by this |
18 | | amendatory Act of the 103rd General Assembly and before |
19 | | June 1, 2024 and the applicant (i) is an electric vehicle |
20 | | manufacturer, an electric vehicle component parts |
21 | | manufacturer, or a renewable energy manufacturer or (ii) |
22 | | has existing operations within Illinois that the applicant |
23 | | intends to convert or expand, in whole or in part, from |
24 | | traditional manufacturing to electric vehicle |
25 | | manufacturing, electric vehicle component parts |
26 | | manufacturing, renewable energy manufacturing, or electric |
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1 | | vehicle power supply equipment manufacturing: |
2 | | (A) make an investment of at least $500,000,000 in |
3 | | capital improvements at the project site; |
4 | | (B) to be placed in service within the State |
5 | | within a 60-month period after approval of the |
6 | | application; and |
7 | | (C) retain at least 800 full-time employee jobs at |
8 | | the project. |
9 | | (d) For agreements entered into prior to April 19, 2022 |
10 | | (the effective date of Public Act 102-700), for any applicant |
11 | | creating the full-time employee jobs noted in subsection (c), |
12 | | those jobs must have a total compensation equal to or greater |
13 | | than 120% of the average wage paid to full-time employees in |
14 | | the county where the project is located, as determined by the |
15 | | U.S. Bureau of Labor Statistics. For agreements entered into |
16 | | on or after April 19, 2022 (the effective date of Public Act |
17 | | 102-700), for any applicant creating the full-time employee |
18 | | jobs noted in subsection (c), those jobs must have a |
19 | | compensation equal to or greater than 120% of the average wage |
20 | | paid to full-time employees in a similar position within an |
21 | | occupational group in the county where the project is located, |
22 | | as determined by the Department. |
23 | | (e) For any applicant, within 24 months after being placed |
24 | | in service, it must certify to the Department that it is carbon |
25 | | neutral or has attained certification under one of more of the |
26 | | following green building standards: |
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1 | | (1) BREEAM for New Construction or BREEAM In-Use; |
2 | | (2) ENERGY STAR; |
3 | | (3) Envision; |
4 | | (4) ISO 50001 - energy management; |
5 | | (5) LEED for Building Design and Construction or LEED |
6 | | for Building Operations and Maintenance; |
7 | | (6) Green Globes for New Construction or Green Globes |
8 | | for Existing Buildings; or |
9 | | (7) UL 3223. |
10 | | (f) Each applicant must outline its hiring plan and |
11 | | commitment to recruit and hire full-time employee positions at |
12 | | the project site. The hiring plan may include a partnership |
13 | | with an institution of higher education to provide |
14 | | internships, including, but not limited to, internships |
15 | | supported by the Clean Jobs Workforce Network Program, or |
16 | | full-time permanent employment for students at the project |
17 | | site. Additionally, the applicant may create or utilize |
18 | | participants from apprenticeship programs that are approved by |
19 | | and registered with the United States Department of Labor's |
20 | | Bureau of Apprenticeship and Training. The applicant may apply |
21 | | for apprenticeship education expense credits in accordance |
22 | | with the provisions set forth in 14 Ill. Adm. Code 522. Each |
23 | | applicant is required to report annually, on or before April |
24 | | 15, on the diversity of its workforce in accordance with |
25 | | Section 50 of this Act. For existing facilities of applicants |
26 | | under paragraph (3) of subsection (b) above, if the taxpayer |
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1 | | expects a reduction in force due to its transition to |
2 | | manufacturing electric vehicle, electric vehicle component |
3 | | parts, or electric vehicle power supply equipment, the plan |
4 | | submitted under this Section must outline the taxpayer's plan |
5 | | to assist with retraining its workforce aligned with the |
6 | | taxpayer's adoption of new technologies and anticipated |
7 | | efforts to retrain employees through employment opportunities |
8 | | within the taxpayer's workforce. |
9 | | (g) Each applicant must demonstrate a contractual or other |
10 | | relationship with a recycling facility, or demonstrate its own |
11 | | recycling capabilities, at the time of application and report |
12 | | annually a continuing contractual or other relationship with a |
13 | | recycling facility and the percentage of batteries used in |
14 | | electric vehicles recycled throughout the term of the |
15 | | agreement. |
16 | | (h) A taxpayer may not enter into more than one agreement |
17 | | under this Act with respect to a single address or location for |
18 | | the same period of time. Also, a taxpayer may not enter into an |
19 | | agreement under this Act with respect to a single address or |
20 | | location for the same period of time for which the taxpayer |
21 | | currently holds an active agreement under the Economic |
22 | | Development for a Growing Economy Tax Credit Act. This |
23 | | provision does not preclude the applicant from entering into |
24 | | an additional agreement after the expiration or voluntary |
25 | | termination of an earlier agreement under this Act or under |
26 | | the Economic Development for a Growing Economy Tax Credit Act |
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1 | | to the extent that the taxpayer's application otherwise |
2 | | satisfies the terms and conditions of this Act and is approved |
3 | | by the Department. An applicant with an existing agreement |
4 | | under the Economic Development for a Growing Economy Tax |
5 | | Credit Act may submit an application for an agreement under |
6 | | this Act after it terminates any existing agreement under the |
7 | | Economic Development for a Growing Economy Tax Credit Act with |
8 | | respect to the same address or location. If a project that is |
9 | | subject to an existing agreement under the Economic |
10 | | Development for a Growing Economy Tax Credit Act meets the |
11 | | requirements to be designated as a REV Illinois project under |
12 | | this Act, including for actions undertaken prior to the |
13 | | effective date of this Act, the taxpayer that is subject to |
14 | | that existing agreement under the Economic Development for a |
15 | | Growing Economy Tax Credit Act may apply to the Department to |
16 | | amend the agreement to allow the project to become a |
17 | | designated REV Illinois project. Following the amendment, time |
18 | | accrued during which the project was eligible for credits |
19 | | under the existing agreement under the Economic Development |
20 | | for a Growing Economy Tax Credit Act shall count toward the |
21 | | duration of the credit subject to limitations described in |
22 | | Section 40 of this Act. |
23 | | (i) If, at any time following the designation of a project |
24 | | as a REV Illinois Project by the Department and prior to the |
25 | | termination or expiration of an agreement under this Act, the |
26 | | project ceases to qualify as a REV Illinois project because |
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1 | | the taxpayer is no longer an electric vehicle manufacturer, an |
2 | | electric vehicle component manufacturer, an electric vehicle |
3 | | power supply equipment manufacturer, a battery recycling and |
4 | | reuse manufacturer, or a battery raw materials refining |
5 | | service provider, or an entity engaged in eVTOL or hybrid |
6 | | electric or fully electric propulsion systems for airliners |
7 | | research, development, or manufacturing, that project may |
8 | | receive tax credit awards as described in Section 5-15 and |
9 | | Section 5-51 of the Economic Development for a Growing Economy |
10 | | Tax Credit Act, as long as the project continues to meet |
11 | | requirements to obtain those credits as described in the |
12 | | Economic Development for a Growing Economy Tax Credit Act and |
13 | | remains compliant with terms contained in the Agreement under |
14 | | this Act not related to their status as an electric vehicle |
15 | | manufacturer, an electric vehicle component manufacturer, an |
16 | | electric vehicle power supply equipment manufacturer, a |
17 | | battery recycling and reuse manufacturer, or a battery raw |
18 | | materials refining service provider , or an entity engaged in |
19 | | eVTOL or hybrid-electric or fully electric propulsion systems |
20 | | for airliners research, development, or manufacturing . Time |
21 | | accrued during which the project was eligible for credits |
22 | | under an agreement under this Act shall count toward the |
23 | | duration of the credit subject to limitations described in |
24 | | Section 5-45 of the Economic Development for a Growing Economy |
25 | | Tax Credit Act. |
26 | | (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22; |
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1 | | 102-1112, eff. 12-21-22; 102-1125, eff. 2-3-23; 103-9, eff. |
2 | | 6-7-23.) |
3 | | (20 ILCS 686/35) |
4 | | Sec. 35. Relocation of jobs in Illinois. A taxpayer is not |
5 | | entitled to claim a credit provided by this Act with respect to |
6 | | any jobs that the Taxpayer relocates from one site in Illinois |
7 | | to another site in Illinois unless the taxpayer has agreed to |
8 | | hire the minimum number of new employees and the Department |
9 | | has determined that the expansion cannot reasonably be |
10 | | accommodated within the municipality in which the business is |
11 | | located . Any full-time employee relocated to Illinois in |
12 | | connection with a qualifying project is deemed to be a new |
13 | | employee for purposes of this Act. Determinations under this |
14 | | Section shall be made by the Department. |
15 | | (Source: P.A. 102-669, eff. 11-16-21.) |
16 | | (20 ILCS 686/45) |
17 | | Sec. 45. Contents of agreements with applicants. |
18 | | (a) The Department shall enter into an agreement with an |
19 | | applicant that is awarded a credit under this Act. The |
20 | | agreement shall include all of the following: |
21 | | (1) A detailed description of the project that is the |
22 | | subject of the agreement, including the location and |
23 | | amount of the investment and jobs created or retained. |
24 | | (2) The duration of the credit, the first taxable year |
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1 | | for which the credit may be awarded, and the first taxable |
2 | | year in which the credit may be used by the taxpayer. |
3 | | (3) The credit amount that will be allowed for each |
4 | | taxable year. |
5 | | (4) For a project qualified under paragraphs (1), (2), |
6 | | (4), or (5) of subsection (c) of Section 20, a requirement |
7 | | that the taxpayer shall maintain operations at the project |
8 | | location a minimum number of years not to exceed 15. For a |
9 | | project qualified under paragraph (3) of subsection (c) of |
10 | | Section 20, a requirement that the taxpayer shall maintain |
11 | | operations at the project location a minimum number of |
12 | | years not to exceed 10. |
13 | | (5) A specific method for determining the number of |
14 | | new employees and if applicable, retained employees, |
15 | | employed during a taxable year. |
16 | | (6) A requirement that the taxpayer shall annually |
17 | | report to the Department the number of new employees, the |
18 | | incremental income tax withheld in connection with the new |
19 | | employees, and any other information the Department deems |
20 | | necessary and appropriate to perform its duties under this |
21 | | Act. |
22 | | (7) A requirement that the Director is authorized to |
23 | | verify with the appropriate State agencies the amounts |
24 | | reported under paragraph (6), and after doing so shall |
25 | | issue a certificate to the taxpayer stating that the |
26 | | amounts have been verified. |
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1 | | (8) A requirement that the taxpayer shall provide |
2 | | written notification to the Director not more than 30 days |
3 | | after the taxpayer makes or receives a proposal that would |
4 | | transfer the taxpayer's State tax liability obligations to |
5 | | a successor taxpayer. |
6 | | (9) A detailed description of the number of new |
7 | | employees to be hired, and the occupation and payroll of |
8 | | full-time jobs to be created or retained because of the |
9 | | project. |
10 | | (10) The minimum investment the taxpayer will make in |
11 | | capital improvements, the time period for placing the |
12 | | property in service, and the designated location in |
13 | | Illinois for the investment. |
14 | | (11) A requirement that the taxpayer shall provide |
15 | | written notification to the Director and the Director's |
16 | | designee not more than 30 days after the taxpayer |
17 | | determines that the minimum job creation or retention, |
18 | | employment payroll, or investment no longer is or will be |
19 | | achieved or maintained as set forth in the terms and |
20 | | conditions of the agreement. Additionally, the |
21 | | notification should outline to the Department the number |
22 | | of layoffs, date of the layoffs, and detail taxpayer's |
23 | | efforts to provide career and training counseling for the |
24 | | impacted workers with industry-related certifications and |
25 | | trainings. |
26 | | (12) If applicable, a provision that, if the total |
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1 | | number of new employees falls below a specified level, the |
2 | | allowance of credit shall be suspended until the number of |
3 | | new employees equals or exceeds the agreement amount. |
4 | | (13) If applicable, a provision that specifies the |
5 | | statewide baseline at the time of application for retained |
6 | | employees. The agreement must have a provision addressing |
7 | | if the total number of retained employees falls below the |
8 | | lesser of the statewide baseline or the retention |
9 | | requirements specified in the agreement, the allowance of |
10 | | the credit shall be suspended until the number of retained |
11 | | employees equals or exceeds the agreement amount. |
12 | | (14) A detailed description of the items for which the |
13 | | costs incurred by the Taxpayer will be included in the |
14 | | limitation on the Credit provided in Section 40. |
15 | | (15) If the agreement is entered into before the |
16 | | effective date of the changes made to this Section by this |
17 | | amendatory Act of the 103rd General Assembly, a provision |
18 | | stating that if the taxpayer fails to meet either the |
19 | | investment or job creation and retention requirements |
20 | | specified in the agreement during the entire 5-year period |
21 | | beginning on the first day of the first taxable year in |
22 | | which the agreement is executed and ending on the last day |
23 | | of the fifth taxable year after the agreement is executed, |
24 | | then the agreement is automatically terminated on the last |
25 | | day of the fifth taxable year after the agreement is |
26 | | executed, and the taxpayer is not entitled to the award of |
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1 | | any credits for any of that 5-year period. If the |
2 | | agreement is entered into on or after the effective date |
3 | | of the changes made to this Section by this amendatory Act |
4 | | of the 103rd General Assembly, a provision stating that if |
5 | | the taxpayer fails to meet either the investment or job |
6 | | creation and retention requirements specified in the |
7 | | agreement during the entire 10-year period beginning on |
8 | | the effective date of the agreement and ending 10 years |
9 | | after the effective date of the agreement, then the |
10 | | agreement is automatically terminated, and the taxpayer is |
11 | | not entitled to the award of any credits for any of that |
12 | | 10-year period. |
13 | | (16) A provision stating that if the taxpayer ceases |
14 | | principal operations with the intent to permanently shut |
15 | | down the project in the State during the term of the |
16 | | Agreement, then the entire credit amount awarded to the |
17 | | taxpayer prior to the date the taxpayer ceases principal |
18 | | operations shall be returned to the Department and shall |
19 | | be reallocated to the local workforce investment area in |
20 | | which the project was located. |
21 | | (17) A provision stating that the Taxpayer must |
22 | | provide the reports outlined in Sections 50 and 55 on or |
23 | | before April 15 each year. |
24 | | (18) A provision requiring the taxpayer to report |
25 | | annually its contractual obligations or otherwise with a |
26 | | recycling facility for its operations. |
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1 | | (19) Any other performance conditions or contract |
2 | | provisions the Department determines are necessary or |
3 | | appropriate. |
4 | | (20) Each taxpayer under paragraph (1) of subsection |
5 | | (c) of Section 20 above shall maintain labor neutrality |
6 | | toward any union organizing campaign for any employees of |
7 | | the taxpayer assigned to work on the premises of the REV |
8 | | Illinois Project Site. This paragraph shall not apply to |
9 | | an electric vehicle manufacturer, electric vehicle |
10 | | component part manufacturer, electric vehicle power supply |
11 | | manufacturer, or renewable energy manufacturer, or any |
12 | | joint venture including an electric vehicle manufacturer, |
13 | | electric vehicle component part manufacturer, electric |
14 | | vehicle power supply manufacturer, or renewable energy |
15 | | manufacturer, or an entity engaged in eVTOL or |
16 | | hybrid-electric or fully electric propulsion systems for |
17 | | airliners research, development, or manufacturing, who is |
18 | | subject to collective bargaining agreement entered into |
19 | | prior to the taxpayer filing an application pursuant to |
20 | | this Act. |
21 | | (b) The Department shall post on its website the terms of |
22 | | each agreement entered into under this Act. Such information |
23 | | shall be posted within 10 days after entering into the |
24 | | agreement and must include the following: |
25 | | (1) the name of the taxpayer; |
26 | | (2) the location of the project; |
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1 | | (3) the estimated value of the credit; |
2 | | (4) the number of new employee jobs and, if |
3 | | applicable, number of retained employee jobs at the |
4 | | project; and |
5 | | (5) whether or not the project is in an underserved |
6 | | area or energy transition area. |
7 | | (Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23; |
8 | | 103-9, eff. 6-7-23.) |
9 | | (20 ILCS 686/65) |
10 | | Sec. 65. REV Construction Jobs Credits Certified payroll . |
11 | | (a) Each REV program participant contractor and |
12 | | subcontractor that is engaged in construction work on project |
13 | | facilities for a taxpayer who seeks to apply for a REV |
14 | | Construction Jobs credit shall annually, until construction is |
15 | | completed, submit a report that, at a minimum, describes the |
16 | | projected project scope, timeline, and anticipated budget. |
17 | | Once the project has commenced, the annual report shall |
18 | | include actual data for the prior year as well as projections |
19 | | for each additional year through completion of the project. |
20 | | The Department shall issue detailed reporting guidelines |
21 | | prescribing the requirements of construction related reports. : |
22 | | In order to receive credit for construction expenses, the |
23 | | company must provide the Department of Commerce and Economic |
24 | | Opportunity with evidence that a certified third-party |
25 | | executed an Agreed-Upon Procedure (AUP) verifying the |
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1 | | construction expenses or accept the standard construction wage |
2 | | expense estimated by the Department of Commerce and Economic |
3 | | Opportunity. |
4 | | Upon review of the final project scope, timeline, budget, |
5 | | and AUP, the Department shall issue a tax credit certificate |
6 | | reflecting a percentage of the total construction job wages |
7 | | paid throughout the completion of the project. |
8 | | (1) make and keep, for a period of 5 years from the |
9 | | date of the last payment made on a contract or subcontract |
10 | | for construction of facilities for a REV Illinois Project |
11 | | pursuant to an agreement, records of all laborers and |
12 | | other workers employed by the contractor or subcontractor |
13 | | on the project; the records shall include: |
14 | | (A) the worker's name; |
15 | | (B) the worker's address; |
16 | | (C) the worker's telephone number, if available; |
17 | | (D) the worker's social security number; |
18 | | (E) the worker's classification or |
19 | | classifications; |
20 | | (F) the worker's gross and net wages paid in each |
21 | | pay period; |
22 | | (G) the worker's number of hours worked in each |
23 | | day; |
24 | | (H) the worker's starting and ending times of work |
25 | | each day; |
26 | | (I) the worker's hourly wage rate; and |
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1 | | (J) the worker's hourly overtime wage rate; and |
2 | | (2) no later than the 15th day of each calendar month, |
3 | | provide a certified payroll for the immediately preceding |
4 | | month to the taxpayer in charge of the project; within 5 |
5 | | business days after receiving the certified payroll, the |
6 | | Taxpayer shall file the certified payroll with the |
7 | | Department of Labor and the Department; a certified |
8 | | payroll must be filed for only those calendar months |
9 | | during which construction on the REV Illinois Project |
10 | | facilities has occurred; the certified payroll shall |
11 | | consist of a complete copy of the records identified in |
12 | | paragraph (1), but may exclude the starting and ending |
13 | | times of work each day; the certified payroll shall be |
14 | | accompanied by a statement signed by the contractor or |
15 | | subcontractor or an officer, employee, or agent of the |
16 | | contractor or subcontractor which avers that: |
17 | | (A) he or she has examined the certified payroll |
18 | | records required to be submitted by the Act and such |
19 | | records are true and accurate; and |
20 | | (B) the contractor or subcontractor is aware that |
21 | | filing a certified payroll that he or she knows to be |
22 | | false is a Class A misdemeanor. |
23 | | A general contractor is not prohibited from relying on a |
24 | | certified payroll of a lower-tier subcontractor, provided the |
25 | | general contractor does not knowingly rely upon a |
26 | | subcontractor's false certification. |
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1 | | (b) (Blank). Any contractor or subcontractor subject to |
2 | | this Section, and any officer, employee, or agent of such |
3 | | contractor or subcontractor whose duty as an officer, |
4 | | employee, or agent it is to file a certified payroll under this |
5 | | Section, who willfully fails to file such a certified payroll, |
6 | | on or before the date such certified payroll is required to be |
7 | | filed and any person who willfully files a false certified |
8 | | payroll as to any material fact is in violation of this Act and |
9 | | guilty of a Class A misdemeanor and may be enforced by the |
10 | | Illinois Department of Labor or the Department. The Attorney |
11 | | General shall represented the Illinois Department of Labor or |
12 | | the Department in the proceeding. |
13 | | (c) (Blank). The taxpayer in charge of the project shall |
14 | | keep the records submitted in accordance with this Section for |
15 | | a period of 5 years from the date of the last payment for work |
16 | | on a contract or subcontract for the project. |
17 | | (d) (Blank). The records submitted in accordance with this |
18 | | Section shall be considered public records, except an |
19 | | employee's address, telephone number, and social security |
20 | | number, which shall be redacted. The records shall be made |
21 | | publicly available in accordance with the Freedom of |
22 | | Information Act. The contractor or subcontractor shall submit |
23 | | reports to the Department of Labor electronically that meet |
24 | | the requirements of this subsection and shall share the |
25 | | information with the Department to comply with the awarding of |
26 | | the REV Construction Jobs Credit. A contractor, subcontractor, |
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1 | | or public body may retain records required under this Section |
2 | | in paper or electronic format. |
3 | | (e) Upon 7 business days' notice, the taxpayer contractor |
4 | | and each subcontractor shall make available to any State |
5 | | agency and to federal, State, or local law enforcement |
6 | | agencies and prosecutors for inspection and copying at a |
7 | | location within this State during reasonable hours, the report |
8 | | described in subsection (a) records identified in paragraph |
9 | | (1) of this subsection to the Taxpayer in charge of the |
10 | | Project, its officers and agents, the Director of the |
11 | | Department of Labor and his/her deputies and agents, and to |
12 | | federal, State, or local law enforcement agencies and |
13 | | prosecutors . |
14 | | (Source: P.A. 102-669, eff. 11-16-21.) |
15 | | (20 ILCS 686/95) |
16 | | Sec. 95. Utility tax exemptions for REV Illinois Project |
17 | | sites. The Department may certify a taxpayer with a REV |
18 | | Illinois credit for a Project that meets the qualifications |
19 | | under Section paragraphs (1), (2), and (4) , (4.1), or (5) of |
20 | | subsection (c) of Section 20, subject to an agreement under |
21 | | this Act for an exemption from the tax imposed at the project |
22 | | site by Section 2-4 of the Electricity Excise Tax Law. To |
23 | | receive such certification, the taxpayer must be registered to |
24 | | self-assess that tax. The taxpayer is also exempt from any |
25 | | additional charges added to the taxpayer's utility bills at |
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1 | | the project site as a pass-on of State utility taxes under |
2 | | Section 9-222 of the Public Utilities Act. The taxpayer must |
3 | | meet any other the criteria for certification set by the |
4 | | Department. |
5 | | The Department shall determine the period during which the |
6 | | exemption from the Electricity Excise Tax Law and the charges |
7 | | imposed under Section 9-222 of the Public Utilities Act are in |
8 | | effect, which shall not exceed 30 10 years or the life of the |
9 | | agreement, whichever is less, from the date of the taxpayer's |
10 | | initial receipt of certification from the Department under |
11 | | this Section. |
12 | | The Department is authorized to adopt rules to carry out |
13 | | the provisions of this Section, including procedures to apply |
14 | | for the exemptions; to define the amounts and types of |
15 | | eligible investments that an applicant must make in order to |
16 | | receive electricity excise tax exemptions or exemptions from |
17 | | the additional charges imposed under Section 9-222 and the |
18 | | Public Utilities Act; to approve such electricity excise tax |
19 | | exemptions for applicants whose investments are not yet placed |
20 | | in service; and to require that an applicant granted an |
21 | | electricity excise tax exemption or an exemption from |
22 | | additional charges under Section 9-222 of the Public Utilities |
23 | | Act repay the exempted amount if the Applicant fails to comply |
24 | | with the terms and conditions of the agreement. |
25 | | Upon certification by the Department under this Section, |
26 | | the Department shall notify the Department of Revenue of the |
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1 | | certification. The Department of Revenue shall notify the |
2 | | public utilities of the exempt status of any taxpayer |
3 | | certified for exemption under this Act from the electricity |
4 | | excise tax or pass-on charges. The exemption status shall take |
5 | | effect within 3 months after certification of the taxpayer and |
6 | | notice to the Department of Revenue by the Department. |
7 | | (Source: P.A. 102-669, eff. 11-16-21.) |
8 | | (20 ILCS 686/105) |
9 | | Sec. 105. Building materials exemptions for REV Illinois |
10 | | Project sites. |
11 | | (a) The Department may certify a Taxpayer with a REV |
12 | | Illinois Project that meets the qualifications under |
13 | | paragraphs (1), (2), or (4) , (4.1), or (5) of subsection (c) of |
14 | | Section 20, subject to an agreement under this Act, for an |
15 | | exemption from any State or local use tax or retailers' |
16 | | occupation tax on building materials for the construction of |
17 | | its project facilities. The taxpayer must meet any criteria |
18 | | for certification set by the Department under this Act. |
19 | | The Department shall determine the period during which the |
20 | | exemption from State and local use tax and retailers' |
21 | | occupation tax are in effect, but in no event shall exceed 5 |
22 | | years in accordance with Section 5m of the Retailers' |
23 | | Occupation Tax Act. |
24 | | The Department is authorized to promulgate rules and |
25 | | regulations to carry out the provisions of this Section, |
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1 | | including procedures to apply for the exemption; to define the |
2 | | amounts and types of eligible investments that an applicant |
3 | | must make in order to receive tax exemption; to approve such |
4 | | tax exemption for an applicant whose investments are not yet |
5 | | placed in service; and to require that an applicant granted |
6 | | exemption repay the exempted amount if the applicant fails to |
7 | | comply with the terms and conditions of the agreement with the |
8 | | Department. |
9 | | Upon certification by the Department under this Section, |
10 | | the Department shall notify the Department of Revenue of the |
11 | | certification. The exemption status shall take effect within 3 |
12 | | months after certification of the taxpayer and notice to the |
13 | | Department of Revenue by the Department. |
14 | | (Source: P.A. 102-669, eff. 11-16-21.) |
15 | | Section 20. The Illinois Income Tax Act is amended by |
16 | | adding Section 241 as follows: |
17 | | (35 ILCS 5/241 new) |
18 | | Sec. 241. Credit for quantum computing campus enterprise |
19 | | zones. |
20 | | (a) A taxpayer who has been awarded a credit by the |
21 | | Department of Commerce and Economic Opportunity under Section |
22 | | 605-115 of the Department of Commerce and Economic Opportunity |
23 | | Law of the Civil Administrative Code of Illinois is entitled |
24 | | to a credit against the taxes imposed under subsections (a) |
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1 | | and (b) of Section 201 of this Act. The amount of the credit |
2 | | shall be 20% of the wages paid by the taxpayer during the |
3 | | taxable year to a full-time or part-time employee of a |
4 | | construction contractor employed in the construction of an |
5 | | eligible facility located on a quantum computing campus |
6 | | enterprise zone designated under Section 605-115 of the |
7 | | Department of Commerce and Economic Opportunity Law of the |
8 | | Civil Administrative Code of Illinois. |
9 | | (b) In no event shall a credit under this Section reduce |
10 | | the taxpayer's liability to less than zero. If the amount of |
11 | | the credit exceeds the tax liability for the year, the excess |
12 | | may be carried forward and applied to the tax liability of the |
13 | | 5 taxable years following the excess credit year. The tax |
14 | | credit shall be applied to the earliest year for which there is |
15 | | a tax liability. If there are credits for more than one year |
16 | | that are available to offset a liability, the earlier credit |
17 | | shall be applied first. |
18 | | (c) As used in this Section, "eligible facility" means a |
19 | | building used primarily to house one or more of the following: |
20 | | a quantum computer operator; a research facility; a data |
21 | | center; a manufacturer and assembler of quantum computers and |
22 | | component parts; a cryogenic or refrigeration facility; or any |
23 | | other facility determined, by industry and academic leaders, |
24 | | to be fundamental to the research and development of quantum |
25 | | computing for practical solutions. |
26 | | (d) This Section is exempt from the provisions of Section |
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1 | | 250. |
2 | | Section 25. The Economic Development for a Growing Economy |
3 | | Tax Credit Act is amended by changing Sections 5-5, 5-15, |
4 | | 5-20, 5-35, 5-45, and 5-56 as follows: |
5 | | (35 ILCS 10/5-5) |
6 | | Sec. 5-5. Definitions. As used in this Act: |
7 | | "Agreement" means the Agreement between a Taxpayer and the |
8 | | Department under the provisions of Section 5-50 of this Act. |
9 | | "Applicant" means a Taxpayer that is operating a business |
10 | | located or that the Taxpayer plans to locate within the State |
11 | | of Illinois and that is engaged in interstate or intrastate |
12 | | commerce for the purpose of manufacturing, processing, |
13 | | assembling, warehousing, or distributing products, conducting |
14 | | research and development, providing tourism services, or |
15 | | providing services in interstate commerce, office industries, |
16 | | or agricultural processing, but excluding retail, retail food, |
17 | | health, or professional services , and services delivered to |
18 | | business customer sites . "Applicant" does not include a |
19 | | Taxpayer who closes or substantially reduces an operation at |
20 | | one location in the State and relocates substantially the same |
21 | | operation to another location in the State. This does not |
22 | | prohibit a Taxpayer from expanding its operations at another |
23 | | location in the State, provided that existing operations of a |
24 | | similar nature located within the State are not closed or |
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1 | | substantially reduced. This also does not prohibit a Taxpayer |
2 | | from moving its operations from one location in the State to |
3 | | another location in the State for the purpose of expanding the |
4 | | operation provided that the Department determines that |
5 | | expansion cannot reasonably be accommodated within the |
6 | | municipality in which the business is located, or in the case |
7 | | of a business located in an incorporated area of the county, |
8 | | within the county in which the business is located, after |
9 | | conferring with the chief elected official of the municipality |
10 | | or county and taking into consideration any evidence offered |
11 | | by the municipality or county regarding the ability to |
12 | | accommodate expansion within the municipality or county. |
13 | | "Credit" means the amount agreed to between the Department |
14 | | and Applicant under this Act, but not to exceed the lesser of: |
15 | | (1) the sum of (i) 50% of the Incremental Income Tax |
16 | | attributable to New Employees at the Applicant's project and |
17 | | (ii) 10% of the training costs of New Employees; or (2) 100% of |
18 | | the Incremental Income Tax attributable to New Employees at |
19 | | the Applicant's project. However, if the project is located in |
20 | | an underserved area, then the amount of the Credit may not |
21 | | exceed the lesser of: (1) the sum of (i) 75% of the Incremental |
22 | | Income Tax attributable to New Employees at the Applicant's |
23 | | project and (ii) 10% of the training costs of New Employees; or |
24 | | (2) 100% of the Incremental Income Tax attributable to New |
25 | | Employees at the Applicant's project. If the project is not |
26 | | located in an underserved area and the Applicant agrees to |
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1 | | hire the required number of New Employees, then the maximum |
2 | | amount of the Credit for that Applicant may be increased by an |
3 | | amount not to exceed 25% of the Incremental Income Tax |
4 | | attributable to retained employees at the Applicant's project. |
5 | | If the project is located in an underserved area and the |
6 | | Applicant agrees to hire the required number of New Employees, |
7 | | then the maximum amount of the credit for that Applicant may be |
8 | | increased by an amount not to exceed 50% of the Incremental |
9 | | Income Tax attributable to retained employees at the |
10 | | Applicant's project. |
11 | | "Department" means the Department of Commerce and Economic |
12 | | Opportunity. |
13 | | "Director" means the Director of Commerce and Economic |
14 | | Opportunity. |
15 | | "Full-time Employee" means an individual who is employed |
16 | | for consideration for at least 35 hours each week or who |
17 | | renders any other standard of service generally accepted by |
18 | | industry custom or practice as full-time employment. An |
19 | | individual for whom a W-2 is issued by a Professional Employer |
20 | | Organization (PEO) is a full-time employee if employed in the |
21 | | service of the Applicant for consideration for at least 35 |
22 | | hours each week or who renders any other standard of service |
23 | | generally accepted by industry custom or practice as full-time |
24 | | employment to Applicant. The employee need not be physically |
25 | | present at the EDGE project location during the entire |
26 | | full-time workweek; however, the agreement shall set forth a |
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1 | | minimum number of hours during which the employee is scheduled |
2 | | to be present at the EDGE project location. |
3 | | "Incremental Income Tax" means the total amount withheld |
4 | | during the taxable year from the compensation of New Employees |
5 | | and, if applicable, retained employees under Article 7 of the |
6 | | Illinois Income Tax Act arising from employment at a project |
7 | | that is the subject of an Agreement. |
8 | | "New Construction EDGE Agreement" means the Agreement |
9 | | between a Taxpayer and the Department under the provisions of |
10 | | Section 5-51 of this Act. |
11 | | "New Construction EDGE Credit" means an amount agreed to |
12 | | between the Department and the Applicant under this Act as |
13 | | part of a New Construction EDGE Agreement that does not exceed |
14 | | 50% of the Incremental Income Tax attributable to New |
15 | | Construction EDGE Employees at the Applicant's project; |
16 | | however, if the New Construction EDGE Project is located in an |
17 | | underserved area, then the amount of the New Construction EDGE |
18 | | Credit may not exceed 75% of the Incremental Income Tax |
19 | | attributable to New Construction EDGE Employees at the |
20 | | Applicant's New Construction EDGE Project. |
21 | | "New Construction EDGE Employee" means a laborer or worker |
22 | | who is employed by a an Illinois contractor or subcontractor |
23 | | in the actual construction work on the site of a New |
24 | | Construction EDGE Project, pursuant to a New Construction EDGE |
25 | | Agreement. |
26 | | "New Construction EDGE Incremental Income Tax" means the |
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1 | | total amount withheld during the taxable year from the |
2 | | compensation of New Construction EDGE Employees. |
3 | | "New Construction EDGE Project" means the building of a |
4 | | Taxpayer's structure or building, or making improvements of |
5 | | any kind to real property. "New Construction EDGE Project" |
6 | | does not include the routine operation, routine repair, or |
7 | | routine maintenance of existing structures, buildings, or real |
8 | | property. |
9 | | "New Employee" means: |
10 | | (a) A Full-time Employee first employed by a Taxpayer |
11 | | at in the project , or assigned to the project as their |
12 | | primary work location, that is the subject of an Agreement |
13 | | and who is hired after the Taxpayer enters into the tax |
14 | | credit Agreement. |
15 | | (b) The term "New Employee" does not include: |
16 | | (1) an employee of the Taxpayer who performs a job |
17 | | that was previously performed by another employee, if |
18 | | that job existed for at least 6 months before hiring |
19 | | the employee; |
20 | | (2) an employee of the Taxpayer who was previously |
21 | | employed in Illinois by a Related Member of the |
22 | | Taxpayer and whose employment was shifted to the |
23 | | Taxpayer after the Taxpayer entered into the tax |
24 | | credit Agreement; or |
25 | | (3) a child, grandchild, parent, or spouse, other |
26 | | than a spouse who is legally separated from the |
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1 | | individual, of any individual who has a direct or an |
2 | | indirect ownership interest of at least 5% in the |
3 | | profits, capital, or value of the Taxpayer. |
4 | | (c) Notwithstanding paragraph (1) of subsection (b), |
5 | | an employee may be considered a New Employee under the |
6 | | Agreement if the employee performs a job that was |
7 | | previously performed by an employee who was: |
8 | | (1) treated under the Agreement as a New Employee; |
9 | | and |
10 | | (2) promoted by the Taxpayer to another job. |
11 | | (d) Notwithstanding subsection (a), the Department may |
12 | | award Credit to an Applicant with respect to an employee |
13 | | hired prior to the date of the Agreement if: |
14 | | (1) the Applicant is in receipt of a letter from |
15 | | the Department stating an intent to enter into a |
16 | | credit Agreement; |
17 | | (2) the letter described in paragraph (1) is |
18 | | issued by the Department not later than 15 days after |
19 | | the effective date of this Act; and |
20 | | (3) the employee was hired after the date the |
21 | | letter described in paragraph (1) was issued. |
22 | | "Noncompliance Date" means, in the case of a Taxpayer that |
23 | | is not complying with the requirements of the Agreement or the |
24 | | provisions of this Act, the day following the last date upon |
25 | | which the Taxpayer was in compliance with the requirements of |
26 | | the Agreement and the provisions of this Act, as determined by |
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1 | | the Director, pursuant to Section 5-65. |
2 | | "Pass Through Entity" means an entity that is exempt from |
3 | | the tax under subsection (b) or (c) of Section 205 of the |
4 | | Illinois Income Tax Act. |
5 | | "Professional Employer Organization" (PEO) means an |
6 | | employee leasing company, as defined in Section 206.1(A)(2) of |
7 | | the Illinois Unemployment Insurance Act. |
8 | | "Related Member" means a person that, with respect to the |
9 | | Taxpayer during any portion of the taxable year, is any one of |
10 | | the following: |
11 | | (1) An individual stockholder, if the stockholder and |
12 | | the members of the stockholder's family (as defined in |
13 | | Section 318 of the Internal Revenue Code) own directly, |
14 | | indirectly, beneficially, or constructively, in the |
15 | | aggregate, at least 50% of the value of the Taxpayer's |
16 | | outstanding stock. |
17 | | (2) A partnership, estate, or trust and any partner or |
18 | | beneficiary, if the partnership, estate, or trust, and its |
19 | | partners or beneficiaries own directly, indirectly, |
20 | | beneficially, or constructively, in the aggregate, at |
21 | | least 50% of the profits, capital, stock, or value of the |
22 | | Taxpayer. |
23 | | (3) A corporation, and any party related to the |
24 | | corporation in a manner that would require an attribution |
25 | | of stock from the corporation to the party or from the |
26 | | party to the corporation under the attribution rules of |
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1 | | Section 318 of the Internal Revenue Code, if the Taxpayer |
2 | | owns directly, indirectly, beneficially, or constructively |
3 | | at least 50% of the value of the corporation's outstanding |
4 | | stock. |
5 | | (4) A corporation and any party related to that |
6 | | corporation in a manner that would require an attribution |
7 | | of stock from the corporation to the party or from the |
8 | | party to the corporation under the attribution rules of |
9 | | Section 318 of the Internal Revenue Code, if the |
10 | | corporation and all such related parties own in the |
11 | | aggregate at least 50% of the profits, capital, stock, or |
12 | | value of the Taxpayer. |
13 | | (5) A person to or from whom there is attribution of |
14 | | stock ownership in accordance with Section 1563(e) of the |
15 | | Internal Revenue Code, except, for purposes of determining |
16 | | whether a person is a Related Member under this paragraph, |
17 | | 20% shall be substituted for 5% wherever 5% appears in |
18 | | Section 1563(e) of the Internal Revenue Code. |
19 | | "Startup taxpayer" means, for Agreements that are executed |
20 | | before the effective date of the changes made to this Section |
21 | | by this amendatory Act of the 103rd General Assembly, a |
22 | | corporation, partnership, or other entity incorporated or |
23 | | organized no more than 5 years before the filing of an |
24 | | application for an Agreement that has never had any Illinois |
25 | | income tax liability, excluding any Illinois income tax |
26 | | liability of a Related Member which shall not be attributed to |
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1 | | the startup taxpayer. "Startup taxpayer" means, for Agreements |
2 | | that are executed on or after the effective date of this |
3 | | amendatory Act of the 103rd General Assembly, a corporation, |
4 | | partnership, or other entity that is incorporated or organized |
5 | | no more than 10 years before the filing of an application for |
6 | | an Agreement and that has never had any Illinois income tax |
7 | | liability. For the purpose of determining whether the taxpayer |
8 | | has had any Illinois income tax liability, the Illinois income |
9 | | tax liability of a Related Member shall not be attributed to |
10 | | the startup taxpayer. |
11 | | "Taxpayer" means an individual, corporation, partnership, |
12 | | or other entity that has any Illinois Income Tax liability. |
13 | | Until July 1, 2022, "underserved area" means a geographic |
14 | | area that meets one or more of the following conditions: |
15 | | (1) the area has a poverty rate of at least 20% |
16 | | according to the latest federal decennial census; |
17 | | (2) 75% or more of the children in the area |
18 | | participate in the federal free lunch program according to |
19 | | reported statistics from the State Board of Education; |
20 | | (3) at least 20% of the households in the area receive |
21 | | assistance under the Supplemental Nutrition Assistance |
22 | | Program (SNAP); or |
23 | | (4) the area has an average unemployment rate, as |
24 | | determined by the Illinois Department of Employment |
25 | | Security, that is more than 120% of the national |
26 | | unemployment average, as determined by the U.S. Department |
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1 | | of Labor, for a period of at least 2 consecutive calendar |
2 | | years preceding the date of the application. |
3 | | On and after July 1, 2022, "underserved area" means a |
4 | | geographic area that meets one or more of the following |
5 | | conditions: |
6 | | (1) the area has a poverty rate of at least 20% |
7 | | according to the latest American Community Survey; |
8 | | (2) 35% or more of the families with children in the |
9 | | area are living below 130% of the poverty line, according |
10 | | to the latest American Community Survey; |
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 | | (Source: P.A. 102-330, eff. 1-1-22; 102-700, eff. 4-19-22; |
21 | | 102-1125, eff. 2-3-23; 103-9, eff. 6-7-23.) |
22 | | (35 ILCS 10/5-15) |
23 | | Sec. 5-15. Tax Credit Awards. Subject to the conditions |
24 | | set forth in this Act, a Taxpayer is entitled to a Credit |
25 | | against or, as described in subsection (g) of this Section, a |
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1 | | payment towards taxes imposed pursuant to subsections (a) and |
2 | | (b) of Section 201 of the Illinois Income Tax Act that may be |
3 | | imposed on the Taxpayer for a taxable year beginning on or |
4 | | after January 1, 1999, if the Taxpayer is awarded a Credit by |
5 | | the Department under this Act for that taxable year. |
6 | | (a) The Department shall make Credit awards under this Act |
7 | | to foster job creation and retention in Illinois. |
8 | | (b) A person that proposes a project to create new jobs in |
9 | | Illinois must enter into an Agreement with the Department for |
10 | | the Credit under this Act. |
11 | | (c) The Credit shall be claimed for the taxable years |
12 | | specified in the Agreement. |
13 | | (d) The Credit shall not exceed the Incremental Income Tax |
14 | | attributable to the project that is the subject of the |
15 | | Agreement. |
16 | | (e) Nothing herein shall prohibit a Tax Credit Award to an |
17 | | Applicant that uses a PEO if all other award criteria are |
18 | | satisfied. |
19 | | (f) In lieu of the Credit allowed under this Act against |
20 | | the taxes imposed pursuant to subsections (a) and (b) of |
21 | | Section 201 of the Illinois Income Tax Act for any taxable year |
22 | | ending on or after December 31, 2009, for Taxpayers that |
23 | | entered into Agreements prior to January 1, 2015 and otherwise |
24 | | meet the criteria set forth in this subsection (f), the |
25 | | Taxpayer may elect to claim the Credit against its obligation |
26 | | to pay over withholding under Section 704A of the Illinois |
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1 | | Income Tax Act. |
2 | | (1) The election under this subsection (f) may be made |
3 | | only by a Taxpayer that (i) is primarily engaged in one of |
4 | | the following business activities: water purification and |
5 | | treatment, motor vehicle metal stamping, automobile |
6 | | manufacturing, automobile and light duty motor vehicle |
7 | | manufacturing, motor vehicle manufacturing, light truck |
8 | | and utility vehicle manufacturing, heavy duty truck |
9 | | manufacturing, motor vehicle body manufacturing, cable |
10 | | television infrastructure design or manufacturing, or |
11 | | wireless telecommunication or computing terminal device |
12 | | design or manufacturing for use on public networks and |
13 | | (ii) meets the following criteria: |
14 | | (A) the Taxpayer (i) had an Illinois net loss or an |
15 | | Illinois net loss deduction under Section 207 of the |
16 | | Illinois Income Tax Act for the taxable year in which |
17 | | the Credit is awarded, (ii) employed a minimum of |
18 | | 1,000 full-time employees in this State during the |
19 | | taxable year in which the Credit is awarded, (iii) has |
20 | | an Agreement under this Act on December 14, 2009 (the |
21 | | effective date of Public Act 96-834), and (iv) is in |
22 | | compliance with all provisions of that Agreement; |
23 | | (B) the Taxpayer (i) had an Illinois net loss or an |
24 | | Illinois net loss deduction under Section 207 of the |
25 | | Illinois Income Tax Act for the taxable year in which |
26 | | the Credit is awarded, (ii) employed a minimum of |
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1 | | 1,000 full-time employees in this State during the |
2 | | taxable year in which the Credit is awarded, and (iii) |
3 | | has applied for an Agreement within 365 days after |
4 | | December 14, 2009 (the effective date of Public Act |
5 | | 96-834); |
6 | | (C) the Taxpayer (i) had an Illinois net operating |
7 | | loss carryforward under Section 207 of the Illinois |
8 | | Income Tax Act in a taxable year ending during |
9 | | calendar year 2008, (ii) has applied for an Agreement |
10 | | within 150 days after the effective date of this |
11 | | amendatory Act of the 96th General Assembly, (iii) |
12 | | creates at least 400 new jobs in Illinois, (iv) |
13 | | retains at least 2,000 jobs in Illinois that would |
14 | | have been at risk of relocation out of Illinois over a |
15 | | 10-year period, and (v) makes a capital investment of |
16 | | at least $75,000,000; |
17 | | (D) the Taxpayer (i) had an Illinois net operating |
18 | | loss carryforward under Section 207 of the Illinois |
19 | | Income Tax Act in a taxable year ending during |
20 | | calendar year 2009, (ii) has applied for an Agreement |
21 | | within 150 days after the effective date of this |
22 | | amendatory Act of the 96th General Assembly, (iii) |
23 | | creates at least 150 new jobs, (iv) retains at least |
24 | | 1,000 jobs in Illinois that would have been at risk of |
25 | | relocation out of Illinois over a 10-year period, and |
26 | | (v) makes a capital investment of at least |
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1 | | $57,000,000; or |
2 | | (E) the Taxpayer (i) employed at least 2,500 |
3 | | full-time employees in the State during the year in |
4 | | which the Credit is awarded, (ii) commits to make at |
5 | | least $500,000,000 in combined capital improvements |
6 | | and project costs under the Agreement, (iii) applies |
7 | | for an Agreement between January 1, 2011 and June 30, |
8 | | 2011, (iv) executes an Agreement for the Credit during |
9 | | calendar year 2011, and (v) was incorporated no more |
10 | | than 5 years before the filing of an application for an |
11 | | Agreement. |
12 | | (1.5) The election under this subsection (f) may also |
13 | | be made by a Taxpayer for any Credit awarded pursuant to an |
14 | | agreement that was executed between January 1, 2011 and |
15 | | June 30, 2011, if the Taxpayer (i) is primarily engaged in |
16 | | the manufacture of inner tubes or tires, or both, from |
17 | | natural and synthetic rubber, (ii) employs a minimum of |
18 | | 2,400 full-time employees in Illinois at the time of |
19 | | application, (iii) creates at least 350 full-time jobs and |
20 | | retains at least 250 full-time jobs in Illinois that would |
21 | | have been at risk of being created or retained outside of |
22 | | Illinois, and (iv) makes a capital investment of at least |
23 | | $200,000,000 at the project location. |
24 | | (1.6) The election under this subsection (f) may also |
25 | | be made by a Taxpayer for any Credit awarded pursuant to an |
26 | | agreement that was executed within 150 days after the |
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1 | | effective date of this amendatory Act of the 97th General |
2 | | Assembly, if the Taxpayer (i) is primarily engaged in the |
3 | | operation of a discount department store, (ii) maintains |
4 | | its corporate headquarters in Illinois, (iii) employs a |
5 | | minimum of 4,250 full-time employees at its corporate |
6 | | headquarters in Illinois at the time of application, (iv) |
7 | | retains at least 4,250 full-time jobs in Illinois that |
8 | | would have been at risk of being relocated outside of |
9 | | Illinois, (v) had a minimum of $40,000,000,000 in total |
10 | | revenue in 2010, and (vi) makes a capital investment of at |
11 | | least $300,000,000 at the project location. |
12 | | (1.7) Notwithstanding any other provision of law, the |
13 | | election under this subsection (f) may also be made by a |
14 | | Taxpayer for any Credit awarded pursuant to an agreement |
15 | | that was executed or applied for on or after July 1, 2011 |
16 | | and on or before March 31, 2012, if the Taxpayer is |
17 | | primarily engaged in the manufacture of original and |
18 | | aftermarket filtration parts and products for automobiles, |
19 | | motor vehicles, light duty motor vehicles, light trucks |
20 | | and utility vehicles, and heavy duty trucks, (ii) employs |
21 | | a minimum of 1,000 full-time employees in Illinois at the |
22 | | time of application, (iii) creates at least 250 full-time |
23 | | jobs in Illinois, (iv) relocates its corporate |
24 | | headquarters to Illinois from another state, and (v) makes |
25 | | a capital investment of at least $4,000,000 at the project |
26 | | location. |
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1 | | (1.8) Notwithstanding any other provision of law, the |
2 | | election under this subsection (f) may also be made by a |
3 | | startup taxpayer for any Credit awarded pursuant to an |
4 | | Agreement that was executed on or after the effective date |
5 | | of this amendatory Act of the 102nd General Assembly. Any |
6 | | such election under this paragraph (1.8) shall be |
7 | | effective unless and until such startup taxpayer has any |
8 | | Illinois income tax liability. This election under this |
9 | | paragraph (1.8) shall automatically terminate when the |
10 | | startup taxpayer has any Illinois income tax liability at |
11 | | the end of any taxable year during the term of the |
12 | | Agreement. Thereafter, the startup taxpayer may receive a |
13 | | Credit, taking into account any benefits previously |
14 | | enjoyed or received by way of the election under this |
15 | | paragraph (1.8), so long as the startup taxpayer remains |
16 | | in compliance with the terms and conditions of the |
17 | | Agreement. |
18 | | (1.9) Notwithstanding any other provision of law, the |
19 | | election under this subsection (f) may also be made by an |
20 | | applicant qualified under paragraph (1.7) of subsection |
21 | | (b) of Section 5-20 for any Credit awarded pursuant to an |
22 | | Agreement that was executed on or after the effective date |
23 | | of this amendatory Act of the 103rd General Assembly. Any |
24 | | such election under this paragraph (1.9) shall be |
25 | | effective unless and until such taxpayer has any Illinois |
26 | | income tax liability. This election under this paragraph |
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1 | | (1.9) shall automatically terminate when the taxpayer has |
2 | | any Illinois income tax liability at the end of any |
3 | | taxable year during the term of the Agreement. Thereafter, |
4 | | the startup taxpayer may receive a Credit, taking into |
5 | | account any benefits previously enjoyed or received by way |
6 | | of the election under this paragraph (1.9), so long as the |
7 | | startup taxpayer remains in compliance with the terms and |
8 | | conditions of the Agreement. |
9 | | (2) An election under this subsection shall allow the |
10 | | credit to be taken against payments otherwise due under |
11 | | Section 704A of the Illinois Income Tax Act during the |
12 | | first calendar quarter beginning after the end of the |
13 | | taxable quarter in which the credit is awarded under this |
14 | | Act. |
15 | | (3) The election shall be made in the form and manner |
16 | | required by the Illinois Department of Revenue and, once |
17 | | made, shall be irrevocable. |
18 | | (4) If a Taxpayer who meets the requirements of |
19 | | subparagraph (A) of paragraph (1) of this subsection (f) |
20 | | elects to claim the Credit against its withholdings as |
21 | | provided in this subsection (f), then, on and after the |
22 | | date of the election, the terms of the Agreement between |
23 | | the Taxpayer and the Department may not be further amended |
24 | | during the term of the Agreement. |
25 | | (g) A pass-through entity that has been awarded a credit |
26 | | under this Act, its shareholders, or its partners may treat |
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1 | | some or all of the credit awarded pursuant to this Act as a tax |
2 | | payment for purposes of the Illinois Income Tax Act. The term |
3 | | "tax payment" means a payment as described in Article 6 or |
4 | | Article 8 of the Illinois Income Tax Act or a composite payment |
5 | | made by a pass-through entity on behalf of any of its |
6 | | shareholders or partners to satisfy such shareholders' or |
7 | | partners' taxes imposed pursuant to subsections (a) and (b) of |
8 | | Section 201 of the Illinois Income Tax Act. In no event shall |
9 | | the amount of the award credited pursuant to this Act exceed |
10 | | the Illinois income tax liability of the pass-through entity |
11 | | or its shareholders or partners for the taxable year. |
12 | | (Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.) |
13 | | (35 ILCS 10/5-20) |
14 | | Sec. 5-20. Application for a project to create and retain |
15 | | new jobs. |
16 | | (a) Any Taxpayer proposing a project located or planned to |
17 | | be located in Illinois may request consideration for |
18 | | designation of its project, by formal written letter of |
19 | | request or by formal application to the Department, in which |
20 | | the Applicant states its intent to make at least a specified |
21 | | level of investment and intends to hire or retain a specified |
22 | | number of full-time employees at a designated location in |
23 | | Illinois. As circumstances require, the Department may require |
24 | | a formal application from an Applicant and a formal letter of |
25 | | request for assistance. |
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1 | | (b) In order to qualify for Credits under this Act, an |
2 | | Applicant's project must: |
3 | | (1) if the Applicant has more than 100 employees, |
4 | | involve an investment of at least $2,500,000 in capital |
5 | | improvements to be placed in service within the State as a |
6 | | direct result of the project; if the Applicant has 100 or |
7 | | fewer employees, then there is no capital investment |
8 | | requirement; |
9 | | (1.5) if the Applicant has more than 100 employees, |
10 | | employ a number of new employees in the State equal to the |
11 | | lesser of (A) 10% of the number of full-time employees |
12 | | employed by the applicant world-wide on the date the |
13 | | application is filed with the Department or (B) 50 New |
14 | | Employees; and, if the Applicant has 100 or fewer |
15 | | employees, employ a number of new employees in the State |
16 | | equal to the lesser of (A) 5% of the number of full-time |
17 | | employees employed by the applicant world-wide on the date |
18 | | the application is filed with the Department or (B) 50 New |
19 | | Employees; |
20 | | (1.6) if the Applicant is a startup taxpayer, the |
21 | | employees employed by Related Members shall not be |
22 | | attributed to the Applicant for purposes of determining |
23 | | the capital investment or job creation requirements under |
24 | | this subsection (b); |
25 | | (1.7) if the agreement is entered into on or after the |
26 | | effective date of this amendatory Act of the 103rd General |
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1 | | Assembly and the Applicant's project: |
2 | | (A) makes an investment of at least $50,000,000 in |
3 | | capital improvements at the project site; |
4 | | (B) is placed in service after approval of the |
5 | | application; and |
6 | | (C) creates jobs for at least 100 new full-time |
7 | | employees. |
8 | | (2) (blank); |
9 | | (3) (blank); and |
10 | | (4) include an annual sexual harassment policy report |
11 | | as provided under Section 5-58. |
12 | | (c) After receipt of an application, the Department may |
13 | | enter into an Agreement with the Applicant if the application |
14 | | is accepted in accordance with Section 5-25. |
15 | | (Source: P.A. 101-81, eff. 7-12-19; 102-700, eff. 4-19-22.) |
16 | | (35 ILCS 10/5-35) |
17 | | Sec. 5-35. Relocation of jobs in Illinois. A taxpayer is |
18 | | not entitled to claim the credit provided by this Act with |
19 | | respect to any jobs that the taxpayer relocates from one site |
20 | | in Illinois unless the taxpayer has agreed to hire the minimum |
21 | | number of new employees and the Department has determined that |
22 | | the expansion cannot reasonably be accommodated within the |
23 | | municipality in which the business is located to another site |
24 | | in Illinois. A taxpayer with respect to a qualifying project |
25 | | certified under the Corporate Headquarters Relocation Act, |
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1 | | however, is not subject to the requirements of this Section |
2 | | but is nevertheless considered an applicant for purposes of |
3 | | this Act. Moreover, any full-time employee of an eligible |
4 | | business relocated to Illinois in connection with that |
5 | | qualifying project is deemed to be a new employee for purposes |
6 | | of this Act . Determinations under this Section shall be made |
7 | | by the Department. |
8 | | (Source: P.A. 91-476, eff. 8-11-99; 92-207, eff. 8-1-01.) |
9 | | (35 ILCS 10/5-45) |
10 | | Sec. 5-45. Amount and duration of the credit. |
11 | | (a) The Department shall determine the amount and duration |
12 | | of the credit awarded under this Act. The duration of the |
13 | | credit may not exceed 10 taxable years for projects qualified |
14 | | under paragraph (1), (1.5), or (1.6) of subsection (b) of |
15 | | Section 5-20 or 15 taxable years for projects qualified under |
16 | | paragraph (1.7) of subsection (b) of Section 5-20 . The credit |
17 | | may be stated as a percentage of the Incremental Income Tax |
18 | | attributable to the applicant's project and may include a |
19 | | fixed dollar limitation. |
20 | | (b) Notwithstanding subsection (a), and except as the |
21 | | credit may be applied in a carryover year pursuant to Section |
22 | | 211(4) of the Illinois Income Tax Act, the credit may be |
23 | | applied against the State income tax liability in more than 10 |
24 | | taxable years but not in more than 15 taxable years for an |
25 | | eligible business that (i) qualifies under this Act and the |
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1 | | Corporate Headquarters Relocation Act and has in fact |
2 | | undertaken a qualifying project within the time frame |
3 | | specified by the Department of Commerce and Economic |
4 | | Opportunity under that Act, and (ii) applies against its State |
5 | | income tax liability, during the entire 15-year period, no |
6 | | more than 60% of the maximum credit per year that would |
7 | | otherwise be available under this Act. |
8 | | (c) Nothing in this Section shall prevent the Department, |
9 | | in consultation with the Department of Revenue, from adopting |
10 | | rules to extend the sunset of any earned, existing, and unused |
11 | | tax credit or credits a taxpayer may be in possession of, as |
12 | | provided for in Section 605-1070 of the Department of Commerce |
13 | | and Economic Opportunity Law of the Civil Administrative Code |
14 | | of Illinois, notwithstanding the carry-forward provisions |
15 | | pursuant to paragraph (4) of Section 211 of the Illinois |
16 | | Income Tax Act. |
17 | | (Source: P.A. 102-16, eff. 6-17-21; 102-813, eff. 5-13-22.) |
18 | | (35 ILCS 10/5-56) |
19 | | Sec. 5-56. Annual report. Certified payroll. Annually, |
20 | | until construction is completed, a company seeking New |
21 | | Construction EDGE Credits shall submit a report that, at a |
22 | | minimum, describes the projected project scope, timeline, and |
23 | | anticipated budget. Once the project has commenced, the annual |
24 | | report shall include actual data for the prior year as well as |
25 | | projections for each additional year through completion of the |
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1 | | project. The Department shall issue detailed reporting |
2 | | guidelines prescribing the requirements of construction |
3 | | related reports. In order to receive credit for construction |
4 | | expenses, the company must provide the Department of Commerce |
5 | | and Economic Opportunity with evidence that a certified |
6 | | third-party executed an Agreed-Upon Procedure (AUP) verifying |
7 | | the construction expenses or accept the standard construction |
8 | | wage expense estimated by the Department of Commerce and |
9 | | Economic Opportunity. |
10 | | Upon review of the final project scope, timeline, budget, |
11 | | and AUP, the Department shall issue a tax credit certificate |
12 | | reflecting a percentage of the total construction job wages |
13 | | paid throughout the completion of the project. |
14 | | Each contractor and subcontractor that is engaged in and is |
15 | | executing a New Construction EDGE Project for a Taxpayer, |
16 | | pursuant to a New Construction EDGE Agreement shall: |
17 | | (1) make and keep, for a period of 5 years from the |
18 | | date of the last payment made on or after June 5, 2019 (the |
19 | | effective date of Public Act 101-9) on a contract or |
20 | | subcontract for a New Construction EDGE Project pursuant |
21 | | to a New Construction EDGE Agreement, records of all |
22 | | laborers and other workers employed by the contractor or |
23 | | subcontractor on the project; the records shall include: |
24 | | (A) the worker's name; |
25 | | (B) the worker's address; |
26 | | (C) the worker's telephone number, if available; |
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1 | | (D) the worker's social security number; |
2 | | (E) the worker's classification or |
3 | | classifications; |
4 | | (F) the worker's gross and net wages paid in each |
5 | | pay period; |
6 | | (G) the worker's number of hours worked each day; |
7 | | (H) the worker's starting and ending times of work |
8 | | each day; |
9 | | (I) the worker's hourly wage rate; and |
10 | | (J) the worker's hourly overtime wage rate; and |
11 | | (2) no later than the 15th day of each calendar month, |
12 | | provide a certified payroll for the immediately preceding |
13 | | month to the taxpayer in charge of the project; within 5 |
14 | | business days after receiving the certified payroll, the |
15 | | taxpayer shall file the certified payroll with the |
16 | | Department of Labor and the Department of Commerce and |
17 | | Economic Opportunity; a certified payroll must be filed |
18 | | for only those calendar months during which construction |
19 | | on a New Construction EDGE Project has occurred; the |
20 | | certified payroll shall consist of a complete copy of the |
21 | | records identified in paragraph (1), but may exclude the |
22 | | starting and ending times of work each day; the certified |
23 | | payroll shall be accompanied by a statement signed by the |
24 | | contractor or subcontractor or an officer, employee, or |
25 | | agent of the contractor or subcontractor which avers that: |
26 | | (A) he or she has examined the certified payroll |
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1 | | records required to be submitted by the Act and such |
2 | | records are true and accurate; and |
3 | | (B) the contractor or subcontractor is aware that |
4 | | filing a certified payroll that he or she knows to be |
5 | | false is a Class A misdemeanor. |
6 | | A general contractor is not prohibited from relying on a |
7 | | certified payroll of a lower-tier subcontractor, provided the |
8 | | general contractor does not knowingly rely upon a |
9 | | subcontractor's false certification. |
10 | | Any contractor or subcontractor subject to this Section, |
11 | | and any officer, employee, or agent of such contractor or |
12 | | subcontractor whose duty as an officer, employee, or agent it |
13 | | is to file a certified payroll under this Section, who |
14 | | willfully fails to file such a certified payroll on or before |
15 | | the date such certified payroll is required to be filed and any |
16 | | person who willfully files a false certified payroll that is |
17 | | false as to any material fact is in violation of this Act and |
18 | | guilty of a Class A misdemeanor. |
19 | | The taxpayer in charge of the project shall keep the |
20 | | records submitted in accordance with this Section on or after |
21 | | June 5, 2019 (the effective date of Public Act 101-9) for a |
22 | | period of 5 years from the date of the last payment for work on |
23 | | a contract or subcontract for the project. |
24 | | The records submitted in accordance with this Section |
25 | | shall be considered public records, except an employee's |
26 | | address, telephone number, and social security number, and |
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1 | | made available in accordance with the Freedom of Information |
2 | | Act. The Department of Labor shall accept any reasonable |
3 | | submissions by the contractor that meet the requirements of |
4 | | this Section and shall share the information with the |
5 | | Department in order to comply with the awarding of New |
6 | | Construction EDGE Credits. A contractor, subcontractor, or |
7 | | public body may retain records required under this Section in |
8 | | paper or electronic format. |
9 | | Upon 7 business days' notice, the taxpayer contractor and |
10 | | each subcontractor shall make available for inspection and |
11 | | copying at a location within this State during reasonable |
12 | | hours, the records identified in paragraph (1) of this Section |
13 | | to the taxpayer in charge of the project, its officers and |
14 | | agents, the Director of Labor and his or her deputies and |
15 | | agents, and to federal, State, or local law enforcement |
16 | | agencies and prosecutors. |
17 | | (Source: P.A. 101-9, eff. 6-5-19; 102-558, eff. 8-20-21.) |
18 | | Section 30. The Manufacturing Illinois Chips for Real |
19 | | Opportunity (MICRO) Act is amended by changing Sections |
20 | | 110-10, 110-20, 110-35, 110-65, and 110-95 as follows: |
21 | | (35 ILCS 45/110-10) |
22 | | Sec. 110-10. Definitions. As used in this Act: |
23 | | "Agreement" means the agreement between a taxpayer and the |
24 | | Department under the provisions of this Act. |
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1 | | "Applicant" means a taxpayer that: (i) operates a business |
2 | | in Illinois as a semiconductor manufacturer, a microchip |
3 | | manufacturer, or a manufacturer of semiconductor or microchip |
4 | | component parts , or focuses on research and development and |
5 | | innovation in the space of semiconductor manufacturing, |
6 | | microchip manufacturing, and the manufacturing of |
7 | | semiconductor or microchip component parts ; or (ii) is |
8 | | planning to locate a business within the State of Illinois as a |
9 | | semiconductor manufacturer, a microchip manufacturer, or a |
10 | | manufacturer of semiconductor or microchip component parts , or |
11 | | focuses on research and development and innovation in the |
12 | | space of semiconductor manufacturing, microchip manufacturing, |
13 | | and the manufacturing of semiconductor or microchip component |
14 | | parts . "Applicant" does not include a taxpayer who closes or |
15 | | substantially reduces by more than 50% operations at one |
16 | | location in the State and relocates substantially the same |
17 | | operation to another location in the State. This does not |
18 | | prohibit a taxpayer from expanding its operations at another |
19 | | location in the State. This also does not prohibit a taxpayer |
20 | | from moving its operations from one location in the State to |
21 | | another location in the State for the purpose of expanding the |
22 | | operation, provided that the Department determines that |
23 | | expansion cannot reasonably be accommodated within the |
24 | | municipality or county in which the business is located, or, |
25 | | in the case of a business located in an incorporated area of |
26 | | the county, within the county in which the business is |
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1 | | located, after conferring with the chief elected official of |
2 | | the municipality or county and taking into consideration any |
3 | | evidence offered by the municipality or county regarding the |
4 | | ability to accommodate expansion within the municipality or |
5 | | county. |
6 | | "Capital improvements" means the purchase, renovation, |
7 | | rehabilitation, or construction of permanent tangible land, |
8 | | buildings, structures, equipment, and furnishings in an |
9 | | approved project sited in Illinois and expenditures for goods |
10 | | or services that are normally capitalized, including |
11 | | organizational costs and research and development costs |
12 | | incurred in Illinois. For land, buildings, structures, and |
13 | | equipment that are leased, the lease must equal or exceed the |
14 | | term of the agreement, and the cost of the property shall be |
15 | | determined from the present value, using the corporate |
16 | | interest rate prevailing at the time of the application, of |
17 | | the lease payments. |
18 | | "Credit" or "MICRO credit" means a credit agreed to |
19 | | between the Department and applicant under this Act. |
20 | | "Department" means the Department of Commerce and Economic |
21 | | Opportunity. |
22 | | "Director" means the Director of Commerce and Economic |
23 | | Opportunity. |
24 | | "Energy Transition Area" means a county with less than |
25 | | 100,000 people or a municipality that contains one or more of |
26 | | the following: |
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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 |
12 | | for consideration for at least 35 hours each week or who |
13 | | renders any other standard of service generally accepted by |
14 | | industry custom or practice as full-time employment. An |
15 | | individual for whom a W-2 is issued by a Professional Employer |
16 | | Organization (PEO) is a full-time employee if employed in the |
17 | | service of the applicant for consideration for at least 35 |
18 | | hours each week. |
19 | | "Incremental income tax" means the total amount withheld |
20 | | during the taxable year from the compensation of new employees |
21 | | and, if applicable, retained employees under Article 7 of the |
22 | | Illinois Income Tax Act arising from employment at a project |
23 | | that is the subject of an agreement. |
24 | | "Institution of higher education" or "institution" means |
25 | | any accredited public or private university, college, |
26 | | community college, business, technical, or vocational school, |
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1 | | or other accredited educational institution offering degrees |
2 | | and instruction beyond the secondary school level. |
3 | | "MICRO construction jobs credit" means a credit agreed to |
4 | | between the Department and the applicant under this Act that |
5 | | is based on the incremental income tax attributable to |
6 | | construction wages paid in connection with construction of the |
7 | | project facilities. |
8 | | "MICRO credit" means a credit agreed to between the |
9 | | Department and the applicant under this Act that is based on |
10 | | the incremental income tax attributable to new employees and, |
11 | | if applicable, retained employees, and on training costs for |
12 | | such employees at the applicant's project. |
13 | | "Microchip" means a wafer of semiconducting material that |
14 | | is less than 15 millimeters long and less than 5 millimeters |
15 | | wide and is used to make an integrated circuit. |
16 | | "Microchip manufacturer" means a new or existing |
17 | | manufacturer that is focused on reequipping, expanding, or |
18 | | establishing a manufacturing facility in Illinois that |
19 | | produces microchips or key components that directly support |
20 | | the functions of microchips. |
21 | | "Minority person" means a minority person as defined in |
22 | | the Business Enterprise for Minorities, Women, and Persons |
23 | | with Disabilities Act. |
24 | | "New employee" means a newly-hired full-time employee |
25 | | employed to work at the project site and whose work is directly |
26 | | related to the project. |
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1 | | "Noncompliance date" means, in the case of a taxpayer that |
2 | | is not complying with the requirements of the agreement or the |
3 | | provisions of this Act, the day following the last date upon |
4 | | which the taxpayer was in compliance with the requirements of |
5 | | the agreement and the provisions of this Act, as determined by |
6 | | the Director. |
7 | | "Pass-through entity" means an entity that is exempt from |
8 | | the tax under subsection (b) or (c) of Section 205 of the |
9 | | Illinois Income Tax Act. |
10 | | "Placed in service" means the state or condition of |
11 | | readiness, availability for a specifically assigned function, |
12 | | and the facility is constructed and ready to conduct its |
13 | | facility operations to manufacture goods. |
14 | | "Professional employer organization" (PEO) means an |
15 | | employee leasing company, as defined in Section 206.1 of the |
16 | | Illinois Unemployment Insurance Act. |
17 | | "Program" means the Manufacturing Illinois Chips for Real |
18 | | Opportunity (MICRO) program established in this Act. |
19 | | "Project" means a for-profit economic development activity |
20 | | for the manufacture of semiconductors and microchips. |
21 | | "Related member" means a person that, with respect to the |
22 | | taxpayer during any portion of the taxable year, is any one of |
23 | | the following: |
24 | | (1) An individual stockholder, if the stockholder and |
25 | | the members of the stockholder's family (as defined in |
26 | | Section 318 of the Internal Revenue Code) own directly, |
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1 | | indirectly, beneficially, or constructively, in the |
2 | | aggregate, at least 50% of the value of the taxpayer's |
3 | | outstanding stock. |
4 | | (2) A partnership, estate, trust and any partner or |
5 | | beneficiary, if the partnership, estate, or trust, and its |
6 | | partners or beneficiaries own directly, indirectly, |
7 | | beneficially, or constructively, in the aggregate, at |
8 | | least 50% of the profits, capital, stock, or value of the |
9 | | taxpayer. |
10 | | (3) A corporation, and any party related to the |
11 | | corporation in a manner that would require an attribution |
12 | | of stock from the corporation under the attribution rules |
13 | | of Section 318 of the Internal Revenue Code, if the |
14 | | taxpayer owns directly, indirectly, beneficially, or |
15 | | constructively at least 50% of the value of the |
16 | | corporation's outstanding stock. |
17 | | (4) A corporation and any party related to that |
18 | | corporation in a manner that would require an attribution |
19 | | of stock from the corporation to the party or from the |
20 | | party to the corporation under the attribution rules of |
21 | | Section 318 of the Internal Revenue Code, if the |
22 | | corporation and all such related parties own in the |
23 | | aggregate at least 50% of the profits, capital, stock, or |
24 | | value of the taxpayer. |
25 | | (5) A person to or from whom there is an attribution of |
26 | | stock ownership in accordance with Section 1563(e) of the |
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1 | | Internal Revenue Code, except, for purposes of determining |
2 | | whether a person is a related member under this paragraph, |
3 | | 20% shall be substituted for 5% wherever 5% appears in |
4 | | Section 1563(e) of the Internal Revenue Code. |
5 | | "Research and development" means work directed toward the |
6 | | innovation, introduction, and improvement of products and |
7 | | processes in the space of semiconductor manufacturing, |
8 | | microchip manufacturing, and the manufacturing of |
9 | | semiconductor or microchip component parts. |
10 | | "Retained employee" means a full-time employee employed by |
11 | | the taxpayer prior to the term of the agreement who continues |
12 | | to be employed during the term of the agreement whose job |
13 | | duties are directly and substantially related to the project. |
14 | | For purposes of this definition, "directly and substantially |
15 | | related to the project" means at least two-thirds of the |
16 | | employee's job duties must be directly related to the project |
17 | | and the employee must devote at least two-thirds of his or her |
18 | | time to the project. The term "retained employee" does not |
19 | | include any individual who has a direct or an indirect |
20 | | ownership interest of at least 5% in the profits, equity, |
21 | | capital, or value of the taxpayer or a child, grandchild, |
22 | | parent, or spouse, other than a spouse who is legally |
23 | | separated from the individual, of any individual who has a |
24 | | direct or indirect ownership of at least 5% in the profits, |
25 | | equity, capital, or value of the taxpayer. |
26 | | "Semiconductor" means any class of crystalline solids |
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1 | | intermediate in electrical conductivity between a conductor |
2 | | and an insulator. |
3 | | "Semiconductor manufacturer" means a new or existing |
4 | | manufacturer that is focused on reequipping, expanding, or |
5 | | establishing a manufacturing facility in Illinois that |
6 | | produces semiconductors or key components that directly |
7 | | support the functions of semiconductors. Semiconductor |
8 | | manufacturing also includes the manufacturing of component |
9 | | parts that are required for the development and operation of |
10 | | quantum computers and quantum computing facilities. |
11 | | "Statewide baseline" means the total number of full-time |
12 | | employees of the applicant and any related member employed by |
13 | | such entities at the time of application for incentives under |
14 | | this Act. |
15 | | "Taxpayer" means an individual, corporation, partnership, |
16 | | or other entity that has a legal obligation to pay Illinois |
17 | | income taxes and file an Illinois income tax return. |
18 | | "Training costs" means costs incurred to upgrade the |
19 | | technological skills of full-time employees in Illinois and |
20 | | includes: curriculum development; training materials |
21 | | (including scrap product costs); trainee domestic travel |
22 | | expenses; instructor costs (including wages, fringe benefits, |
23 | | tuition and domestic travel expenses); rent, purchase or lease |
24 | | of training equipment; and other usual and customary training |
25 | | costs. "Training costs" do not include costs associated with |
26 | | travel outside the United States (unless the taxpayer receives |
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1 | | prior written approval for the travel by the Director based on |
2 | | a showing of substantial need or other proof the training is |
3 | | not reasonably available within the United States), wages and |
4 | | fringe benefits of employees during periods of training, or |
5 | | administrative cost related to full-time employees of the |
6 | | taxpayer. |
7 | | "Underserved area" means any geographic area areas as |
8 | | defined in Section 5-5 of the Economic Development for a |
9 | | Growing Economy Tax Credit Act. |
10 | | (Source: P.A. 102-700, eff. 4-19-22.) |
11 | | (35 ILCS 45/110-20) |
12 | | Sec. 110-20. Manufacturing Illinois Chips for Real |
13 | | Opportunity (MICRO) Program; project applications. |
14 | | (a) The Manufacturing Illinois Chips for Real Opportunity |
15 | | (MICRO) Program is hereby established and shall be |
16 | | administered by the Department. The Program will provide |
17 | | financial incentives to eligible semiconductor manufacturers , |
18 | | and microchip manufacturers , and companies focusing on |
19 | | research and development and innovation in the space of |
20 | | semiconductor manufacturing, microchip manufacturing, and the |
21 | | manufacturing of semiconductor or microchip component parts . |
22 | | (b) Any taxpayer planning a project to be located in |
23 | | Illinois may request consideration for designation of its |
24 | | project as a MICRO project, by formal written letter of |
25 | | request or by formal application to the Department, in which |
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1 | | the applicant states its intent to make at least a specified |
2 | | level of investment and intends to hire a specified number of |
3 | | full-time employees at a designated location in Illinois. As |
4 | | circumstances require, the Department shall require a formal |
5 | | application from an applicant and a formal letter of request |
6 | | for assistance. |
7 | | (c) In order to qualify for credits under the program, an |
8 | | applicant must: |
9 | | (1) for a semiconductor manufacturer or microchip |
10 | | manufacturer: |
11 | | (A) make an investment of at least $1,500,000,000 |
12 | | in capital improvements at the project site; |
13 | | (B) to be placed in service within the State |
14 | | within a 60-month period after approval of the |
15 | | application; and |
16 | | (C) create at least 500 new full-time employee |
17 | | jobs; or |
18 | | (2) for a semiconductor or microchip component parts |
19 | | manufacturer: |
20 | | (A) make an investment of at least $300,000,000 in |
21 | | capital improvements at the project site; |
22 | | (B) manufacture one or more parts that are |
23 | | primarily used for the manufacture of semiconductors |
24 | | or microchips; |
25 | | (C) to be placed in service within the State |
26 | | within a 60-month period after approval of the |
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1 | | application; and |
2 | | (D) create at least 150 new full-time employee |
3 | | jobs; or |
4 | | (3) for a semiconductor manufacturer or microchip |
5 | | manufacturer or a semiconductor or microchip component |
6 | | parts manufacturer that does not quality under paragraph |
7 | | (2) above: |
8 | | (A) make an investment of at least $2,500,000 |
9 | | $20,000,000 in capital improvements at the project |
10 | | site; |
11 | | (B) to be placed in service within the State |
12 | | within a 48-month period after approval of the |
13 | | application; and |
14 | | (C) create at least 50 new full-time employee jobs |
15 | | or new full-time employees equivalent to 10% of the |
16 | | number of full-time employees employed by the |
17 | | applicant world-wide on the date the application is |
18 | | filed with the Department ; or |
19 | | (4) for a semiconductor manufacturer or microchip |
20 | | manufacturer or a semiconductor or microchip component |
21 | | parts manufacturer with existing operations in Illinois |
22 | | that intends to convert or expand, in whole or in part, the |
23 | | existing facility from traditional manufacturing to |
24 | | semiconductor manufacturing or microchip manufacturing or |
25 | | semiconductor or microchip component parts manufacturing , |
26 | | or a company focusing on research and development and |
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1 | | innovation in the space of semiconductor manufacturing, |
2 | | microchip manufacturing, and the manufacturing of |
3 | | semiconductor or microchip component parts : |
4 | | (A) make an investment of at least $100,000,000 in |
5 | | capital improvements at the project site; |
6 | | (B) to be placed in service within the State |
7 | | within a 60-month period after approval of the |
8 | | application; and |
9 | | (C) create the lesser of 75 new full-time employee |
10 | | jobs or new full-time employee jobs equivalent to 10% |
11 | | of the Statewide baseline applicable to the taxpayer |
12 | | and any related member at the time of application. |
13 | | (d) For any applicant creating the full-time employee jobs |
14 | | noted in subsection (c), those jobs must have a total |
15 | | compensation equal to or greater than 120% of the average wage |
16 | | paid to full-time employees in the county where the project is |
17 | | located, as determined by the Department. |
18 | | (e) Each applicant must outline its hiring plan and |
19 | | commitment to recruit and hire full-time employee positions at |
20 | | the project site. The hiring plan may include a partnership |
21 | | with an institution of higher education to provide |
22 | | internships, including, but not limited to, internships |
23 | | supported by the Clean Jobs Workforce Network Program, or |
24 | | full-time permanent employment for students at the project |
25 | | site. Additionally, the applicant may create or utilize |
26 | | participants from apprenticeship programs that are approved by |
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1 | | and registered with the United States Department of Labor's |
2 | | Bureau of Apprenticeship and Training. The Applicant may apply |
3 | | for apprenticeship education expense credits in accordance |
4 | | with the provisions set forth in 14 Ill. Admin. Code 522. Each |
5 | | applicant is required to report annually, on or before April |
6 | | 15, on the diversity of its workforce in accordance with |
7 | | Section 110-50 of this Act. For existing facilities of |
8 | | applicants under paragraph (3) of subsection (b) above, if the |
9 | | taxpayer expects a reduction in force due to its transition to |
10 | | manufacturing semiconductors, microchips, or semiconductor or |
11 | | microchip component parts, the plan submitted under this |
12 | | Section must outline the taxpayer's plan to assist with |
13 | | retraining its workforce aligned with the taxpayer's adoption |
14 | | of new technologies and anticipated efforts to retrain |
15 | | employees through employment opportunities within the |
16 | | taxpayer's workforce. |
17 | | (f) A taxpayer may not enter into more than one agreement |
18 | | under this Act with respect to a single address or location for |
19 | | the same period of time. Also, a taxpayer may not enter into an |
20 | | agreement under this Act with respect to a single address or |
21 | | location for the same period of time for which the taxpayer |
22 | | currently holds an active agreement under the Economic |
23 | | Development for a Growing Economy Tax Credit Act. This |
24 | | provision does not preclude the applicant from entering into |
25 | | an additional agreement after the expiration or voluntary |
26 | | termination of an earlier agreement under this Act or under |
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1 | | the Economic Development for a Growing Economy Tax Credit Act |
2 | | to the extent that the taxpayer's application otherwise |
3 | | satisfies the terms and conditions of this Act and is approved |
4 | | by the Department. An applicant with an existing agreement |
5 | | under the Economic Development for a Growing Economy Tax |
6 | | Credit Act may submit an application for an agreement under |
7 | | this Act after it terminates any existing agreement under the |
8 | | Economic Development for a Growing Economy Tax Credit Act with |
9 | | respect to the same address or location. |
10 | | (Source: P.A. 102-700, eff. 4-19-22; 102-1125, eff. 2-3-23.) |
11 | | (35 ILCS 45/110-35) |
12 | | Sec. 110-35. Relocation of jobs in Illinois. A taxpayer is |
13 | | not entitled to claim a credit provided by this Act with |
14 | | respect to any jobs that the taxpayer relocates from one site |
15 | | in Illinois to another site in Illinois unless the taxpayer |
16 | | has agreed to hire the minimum number of new employees and the |
17 | | Department has determined that the expansion cannot reasonably |
18 | | be accommodated within the municipality in which the business |
19 | | is located . Any full-time employee relocated to Illinois in |
20 | | connection with a qualifying project is deemed to be a new |
21 | | employee for purposes of this Act. Determinations under this |
22 | | Section shall be made by the Department. |
23 | | (Source: P.A. 102-700, eff. 4-19-22.) |
24 | | (35 ILCS 45/110-65) |
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1 | | Sec. 110-65. Certified payroll. |
2 | | (a) Annually, until construction is completed, a company |
3 | | seeking MICRO Construction Job Credits shall submit a report |
4 | | that, at a minimum, describes the projected project scope, |
5 | | timeline, and anticipated budget. Once the project has |
6 | | commenced, the annual report shall include actual data for the |
7 | | prior year as well as projections for each additional year |
8 | | through completion of the project. The Department shall issue |
9 | | detailed reporting guidelines prescribing the requirements of |
10 | | construction-related reports. Each contractor and |
11 | | subcontractor that is engaged in construction work on project |
12 | | facilities for a taxpayer who seeks to apply for a MICRO |
13 | | Construction Jobs Credit shall: |
14 | | (1) make and keep, for a period of 5 years from the |
15 | | date of the last payment made on a contract or subcontract |
16 | | for construction of facilities for a project pursuant to |
17 | | an agreement, records of all laborers and other workers |
18 | | employed by the contractor or subcontractor on the |
19 | | project; the records shall include: |
20 | | (A) the worker's name; |
21 | | (B) the worker's address; |
22 | | (C) the worker's telephone number, if available; |
23 | | (D) the worker's social security number; |
24 | | (E) the worker's classification or |
25 | | classifications; |
26 | | (F) the worker's gross and net wages paid in each |
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1 | | pay period; |
2 | | (G) the worker's number of hours worked in each |
3 | | day; |
4 | | (H) the worker's starting and ending times of work |
5 | | each day; |
6 | | (I) the worker's hourly wage rate; and |
7 | | (J) the worker's hourly overtime wage rate; and |
8 | | (2) no later than the 15th day of each calendar month, |
9 | | provide a certified payroll for the immediately preceding |
10 | | month to the taxpayer in charge of the project; within 5 |
11 | | business days after receiving the certified payroll, the |
12 | | taxpayer shall file the certified payroll with the |
13 | | Department of Labor and the Department; a certified |
14 | | payroll must be filed for only those calendar months |
15 | | during which construction on the project facilities has |
16 | | occurred; the certified payroll shall consist of a |
17 | | complete copy of the records identified in paragraph (1), |
18 | | but may exclude the starting and ending times of work each |
19 | | day; the certified payroll shall be accompanied by a |
20 | | statement signed by the contractor or subcontractor or an |
21 | | officer, employee, or agent of the contractor or |
22 | | subcontractor which avers that: |
23 | | (A) he or she has examined the certified payroll |
24 | | records required to be submitted by the Act and such |
25 | | records are true and accurate; and |
26 | | (B) the contractor or subcontractor is aware that |
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1 | | filing a certified payroll that he or she knows to be |
2 | | false is a Class A misdemeanor. |
3 | | A general contractor is not prohibited from relying on a |
4 | | certified payroll of a lower-tier subcontractor, provided the |
5 | | general contractor does not knowingly rely upon a |
6 | | subcontractor's false certification. |
7 | | (b) In order to receive credit for construction expenses, |
8 | | the company must provide the Department of Commerce and |
9 | | Economic Opportunity with evidence that a certified third |
10 | | party executed an Agreed-Upon Procedure (AUP) verifying the |
11 | | construction expenses or accept the standard construction wage |
12 | | expense estimated by the Department of Commerce and Economic |
13 | | Opportunity. Any contractor or subcontractor subject to this |
14 | | Section, and any officer, employee, or agent of such |
15 | | contractor or subcontractor whose duty as an officer, |
16 | | employee, or agent it is to file a certified payroll under this |
17 | | Section, who willfully fails to file such a certified payroll, |
18 | | on or before the date such certified payroll is required to be |
19 | | filed and any person who willfully files a false certified |
20 | | payroll as to any material fact is in violation of this Act and |
21 | | guilty of a Class A misdemeanor and may be enforced by the |
22 | | Illinois Department of Labor or the Department. The Attorney |
23 | | General shall represented the Illinois Department of Labor or |
24 | | the Department in the proceeding. |
25 | | (c) Upon review of the final project scope, timeline, |
26 | | budget, and AUP, the Department shall issue a tax credit |
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1 | | certificate reflecting a percentage of the total construction |
2 | | job wages paid throughout the completion of the project. The |
3 | | taxpayer in charge of the project shall keep the records |
4 | | submitted in accordance with this Section for a period of 5 |
5 | | years from the date of the last payment for work on a contract |
6 | | or subcontract for the project. |
7 | | (d) (Blank). The records submitted in accordance with this |
8 | | Section shall be considered public records, except an |
9 | | employee's address, telephone number, and social security |
10 | | number, which shall be redacted. The records shall be made |
11 | | publicly available in accordance with the Freedom of |
12 | | Information Act. The contractor or subcontractor shall submit |
13 | | reports to the Department of Labor electronically that meet |
14 | | the requirements of this subsection and shall share the |
15 | | information with the Department to comply with the awarding of |
16 | | the MICRO Construction Jobs Credit. A contractor, |
17 | | subcontractor, or public body may retain records required |
18 | | under this Section in paper or electronic format. |
19 | | (e) Upon 7 business days' notice, the taxpayer contractor |
20 | | and each subcontractor shall make available to each State |
21 | | agency and to federal, State, or local law enforcement |
22 | | agencies and prosecutors for inspection and copying at a |
23 | | location within this State during reasonable hours, the report |
24 | | described in subsection (a) records identified in paragraph |
25 | | (1) of this subsection to the taxpayer in charge of the |
26 | | Project, its officers and agents, the Director of the |
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1 | | Department of Labor and his/her deputies and agents, and to |
2 | | federal, State, or local law enforcement agencies and |
3 | | prosecutors . |
4 | | (Source: P.A. 102-700, eff. 4-19-22.) |
5 | | (35 ILCS 45/110-95) |
6 | | Sec. 110-95. Utility tax exemptions for MICRO projects. |
7 | | The Department may certify a taxpayer with a credit for a |
8 | | project that meets the qualifications under paragraphs (1), |
9 | | (2), and (4) of subsection (c) of Section 110-20, subject to an |
10 | | agreement under this Act, for an exemption from the tax |
11 | | imposed at the project site by Section 2-4 of the Electricity |
12 | | Excise Tax Law. To receive such certification, the taxpayer |
13 | | must be registered to self-assess that tax. The taxpayer is |
14 | | also exempt from any additional charges added to the |
15 | | taxpayer's utility bills at the project site as a pass-on of |
16 | | State utility taxes under Section 9-222 of the Public |
17 | | Utilities Act. The taxpayer must meet any other the criteria |
18 | | for certification set by the Department. |
19 | | The Department shall determine the period during which the |
20 | | exemption from the Electricity Excise Tax Law and the charges |
21 | | imposed under Section 9-222 of the Public Utilities Act are in |
22 | | effect, which shall not exceed 30 10 years or the life of the |
23 | | agreement, whichever is lesser, from the date of the |
24 | | taxpayer's initial receipt of certification from the |
25 | | Department under this Section. |
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1 | | The Department is authorized to adopt rules to carry out |
2 | | the provisions of this Section, including procedures to apply |
3 | | for the exemptions; to define the amounts and types of |
4 | | eligible investments that an applicant must make in order to |
5 | | receive electricity excise tax exemptions or exemptions from |
6 | | the additional charges imposed under Section 9-222 and the |
7 | | Public Utilities Act; to approve such electricity excise tax |
8 | | exemptions for applicants whose investments are not yet placed |
9 | | in service; and to require that an applicant granted an |
10 | | electricity excise tax exemption or an exemption from |
11 | | additional charges under Section 9-222 of the Public Utilities |
12 | | Act repay the exempted amount if the applicant fails to comply |
13 | | with the terms and conditions of the agreement. |
14 | | Upon certification by the Department under this Section, |
15 | | the Department shall notify the Department of Revenue of the |
16 | | certification. The Department of Revenue shall notify the |
17 | | public utilities of the exempt status of any taxpayer |
18 | | certified for exemption under this Act from the electricity |
19 | | excise tax or pass-on charges. The exemption status shall take |
20 | | effect within 3 months after certification of the taxpayer and |
21 | | notice to the Department of Revenue by the Department. |
22 | | (Source: P.A. 102-700, eff. 4-19-22.) |
23 | | Section 35. The Use Tax Act is amended by changing Section |
24 | | 3-5 as follows: |
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1 | | (35 ILCS 105/3-5) |
2 | | Sec. 3-5. Exemptions. Use of the following tangible |
3 | | personal property is exempt from the tax imposed by this Act: |
4 | | (1) Personal property purchased from a corporation, |
5 | | society, association, foundation, institution, or |
6 | | organization, other than a limited liability company, that is |
7 | | organized and operated as a not-for-profit service enterprise |
8 | | for the benefit of persons 65 years of age or older if the |
9 | | personal property was not purchased by the enterprise for the |
10 | | purpose of resale by the enterprise. |
11 | | (2) Personal property purchased by a not-for-profit |
12 | | Illinois county fair association for use in conducting, |
13 | | operating, or promoting the county fair. |
14 | | (3) Personal property purchased by a not-for-profit arts |
15 | | or cultural organization that establishes, by proof required |
16 | | by the Department by rule, that it has received an exemption |
17 | | under Section 501(c)(3) of the Internal Revenue Code and that |
18 | | is organized and operated primarily for the presentation or |
19 | | support of arts or cultural programming, activities, or |
20 | | services. These organizations include, but are not limited to, |
21 | | music and dramatic arts organizations such as symphony |
22 | | orchestras and theatrical groups, arts and cultural service |
23 | | organizations, local arts councils, visual arts organizations, |
24 | | and media arts organizations. On and after July 1, 2001 (the |
25 | | effective date of Public Act 92-35), however, an entity |
26 | | otherwise eligible for this exemption shall not make tax-free |
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1 | | purchases unless it has an active identification number issued |
2 | | by the Department. |
3 | | (4) Except as otherwise provided in this Act, personal |
4 | | property purchased by a governmental body, by a corporation, |
5 | | society, association, foundation, or institution organized and |
6 | | operated exclusively for charitable, religious, or educational |
7 | | purposes, or by a not-for-profit corporation, society, |
8 | | association, foundation, institution, or organization that has |
9 | | no compensated officers or employees and that is organized and |
10 | | operated primarily for the recreation of persons 55 years of |
11 | | age or older. A limited liability company may qualify for the |
12 | | exemption under this paragraph only if the limited liability |
13 | | company is organized and operated exclusively for educational |
14 | | purposes. On and after July 1, 1987, however, no entity |
15 | | otherwise eligible for this exemption shall make tax-free |
16 | | purchases unless it has an active exemption identification |
17 | | number issued by the Department. |
18 | | (5) Until July 1, 2003, a passenger car that is a |
19 | | replacement vehicle to the extent that the purchase price of |
20 | | the car is subject to the Replacement Vehicle Tax. |
21 | | (6) Until July 1, 2003 and beginning again on September 1, |
22 | | 2004 through August 30, 2014, graphic arts machinery and |
23 | | equipment, including repair and replacement parts, both new |
24 | | and used, and including that manufactured on special order, |
25 | | certified by the purchaser to be used primarily for graphic |
26 | | arts production, and including machinery and equipment |
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1 | | purchased for lease. Equipment includes chemicals or chemicals |
2 | | acting as catalysts but only if the chemicals or chemicals |
3 | | acting as catalysts effect a direct and immediate change upon |
4 | | a graphic arts product. Beginning on July 1, 2017, graphic |
5 | | arts machinery and equipment is included in the manufacturing |
6 | | and assembling machinery and equipment exemption under |
7 | | paragraph (18). |
8 | | (7) Farm chemicals. |
9 | | (8) Legal tender, currency, medallions, or gold or silver |
10 | | coinage issued by the State of Illinois, the government of the |
11 | | United States of America, or the government of any foreign |
12 | | country, and bullion. |
13 | | (9) Personal property purchased from a teacher-sponsored |
14 | | student organization affiliated with an elementary or |
15 | | secondary school located in Illinois. |
16 | | (10) A motor vehicle that is used for automobile renting, |
17 | | as defined in the Automobile Renting Occupation and Use Tax |
18 | | Act. |
19 | | (11) Farm machinery and equipment, both new and used, |
20 | | including that manufactured on special order, certified by the |
21 | | purchaser to be used primarily for production agriculture or |
22 | | State or federal agricultural programs, including individual |
23 | | replacement parts for the machinery and equipment, including |
24 | | machinery and equipment purchased for lease, and including |
25 | | implements of husbandry defined in Section 1-130 of the |
26 | | Illinois Vehicle Code, farm machinery and agricultural |
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1 | | chemical and fertilizer spreaders, and nurse wagons required |
2 | | to be registered under Section 3-809 of the Illinois Vehicle |
3 | | Code, but excluding other motor vehicles required to be |
4 | | registered under the Illinois Vehicle Code. Horticultural |
5 | | polyhouses or hoop houses used for propagating, growing, or |
6 | | overwintering plants shall be considered farm machinery and |
7 | | equipment under this item (11). Agricultural chemical tender |
8 | | tanks and dry boxes shall include units sold separately from a |
9 | | motor vehicle required to be licensed and units sold mounted |
10 | | on a motor vehicle required to be licensed if the selling price |
11 | | of the tender is separately stated. |
12 | | Farm machinery and equipment shall include precision |
13 | | farming equipment that is installed or purchased to be |
14 | | installed on farm machinery and equipment , including, but not |
15 | | limited to, tractors, harvesters, sprayers, planters, seeders, |
16 | | or spreaders. Precision farming equipment includes, but is not |
17 | | limited to, soil testing sensors, computers, monitors, |
18 | | software, global positioning and mapping systems, and other |
19 | | such equipment. |
20 | | Farm machinery and equipment also includes computers, |
21 | | sensors, software, and related equipment used primarily in the |
22 | | computer-assisted operation of production agriculture |
23 | | facilities, equipment, and activities such as, but not limited |
24 | | to, the collection, monitoring, and correlation of animal and |
25 | | crop data for the purpose of formulating animal diets and |
26 | | agricultural chemicals. |
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1 | | Beginning on January 1, 2024, farm machinery and equipment |
2 | | also includes electrical power generation equipment used |
3 | | primarily for production agriculture. |
4 | | This item (11) is exempt from the provisions of Section |
5 | | 3-90. |
6 | | (12) Until June 30, 2013, fuel and petroleum products sold |
7 | | to or used by an air common carrier, certified by the carrier |
8 | | to be used for consumption, shipment, or storage in the |
9 | | conduct of its business as an air common carrier, for a flight |
10 | | destined for or returning from a location or locations outside |
11 | | the United States without regard to previous or subsequent |
12 | | domestic stopovers. |
13 | | Beginning July 1, 2013, fuel and petroleum products sold |
14 | | to or used by an air carrier, certified by the carrier to be |
15 | | used for consumption, shipment, or storage in the conduct of |
16 | | its business as an air common carrier, for a flight that (i) is |
17 | | engaged in foreign trade or is engaged in trade between the |
18 | | United States and any of its possessions and (ii) transports |
19 | | at least one individual or package for hire from the city of |
20 | | origination to the city of final destination on the same |
21 | | aircraft, without regard to a change in the flight number of |
22 | | that aircraft. |
23 | | (13) Proceeds of mandatory service charges separately |
24 | | stated on customers' bills for the purchase and consumption of |
25 | | food and beverages purchased at retail from a retailer, to the |
26 | | extent that the proceeds of the service charge are in fact |
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1 | | turned over as tips or as a substitute for tips to the |
2 | | employees who participate directly in preparing, serving, |
3 | | hosting or cleaning up the food or beverage function with |
4 | | respect to which the service charge is imposed. |
5 | | (14) Until July 1, 2003, oil field exploration, drilling, |
6 | | and production equipment, including (i) rigs and parts of |
7 | | rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) |
8 | | pipe and tubular goods, including casing and drill strings, |
9 | | (iii) pumps and pump-jack units, (iv) storage tanks and flow |
10 | | lines, (v) any individual replacement part for oil field |
11 | | exploration, drilling, and production equipment, and (vi) |
12 | | machinery and equipment purchased for lease; but excluding |
13 | | motor vehicles required to be registered under the Illinois |
14 | | Vehicle Code. |
15 | | (15) Photoprocessing machinery and equipment, including |
16 | | repair and replacement parts, both new and used, including |
17 | | that manufactured on special order, certified by the purchaser |
18 | | to be used primarily for photoprocessing, and including |
19 | | photoprocessing machinery and equipment purchased for lease. |
20 | | (16) Until July 1, 2028, coal and aggregate exploration, |
21 | | mining, off-highway hauling, processing, maintenance, and |
22 | | reclamation equipment, including replacement parts and |
23 | | equipment, and including equipment purchased for lease, but |
24 | | excluding motor vehicles required to be registered under the |
25 | | Illinois Vehicle Code. The changes made to this Section by |
26 | | Public Act 97-767 apply on and after July 1, 2003, but no claim |
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1 | | for credit or refund is allowed on or after August 16, 2013 |
2 | | (the effective date of Public Act 98-456) for such taxes paid |
3 | | during the period beginning July 1, 2003 and ending on August |
4 | | 16, 2013 (the effective date of Public Act 98-456). |
5 | | (17) Until July 1, 2003, distillation machinery and |
6 | | equipment, sold as a unit or kit, assembled or installed by the |
7 | | retailer, certified by the user to be used only for the |
8 | | production of ethyl alcohol that will be used for consumption |
9 | | as motor fuel or as a component of motor fuel for the personal |
10 | | use of the user, and not subject to sale or resale. |
11 | | (18) Manufacturing and assembling machinery and equipment |
12 | | used primarily in the process of manufacturing or assembling |
13 | | tangible personal property for wholesale or retail sale or |
14 | | lease, whether that sale or lease is made directly by the |
15 | | manufacturer or by some other person, whether the materials |
16 | | used in the process are owned by the manufacturer or some other |
17 | | person, or whether that sale or lease is made apart from or as |
18 | | an incident to the seller's engaging in the service occupation |
19 | | of producing machines, tools, dies, jigs, patterns, gauges, or |
20 | | other similar items of no commercial value on special order |
21 | | for a particular purchaser. The exemption provided by this |
22 | | paragraph (18) includes production related tangible personal |
23 | | property, as defined in Section 3-50, purchased on or after |
24 | | July 1, 2019. The exemption provided by this paragraph (18) |
25 | | does not include machinery and equipment used in (i) the |
26 | | generation of electricity for wholesale or retail sale; (ii) |
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1 | | the generation or treatment of natural or artificial gas for |
2 | | wholesale or retail sale that is delivered to customers |
3 | | through pipes, pipelines, or mains; or (iii) the treatment of |
4 | | water for wholesale or retail sale that is delivered to |
5 | | customers through pipes, pipelines, or mains. The provisions |
6 | | of Public Act 98-583 are declaratory of existing law as to the |
7 | | meaning and scope of this exemption. Beginning on July 1, |
8 | | 2017, the exemption provided by this paragraph (18) includes, |
9 | | but is not limited to, graphic arts machinery and equipment, |
10 | | as defined in paragraph (6) of this Section. |
11 | | (19) Personal property delivered to a purchaser or |
12 | | purchaser's donee inside Illinois when the purchase order for |
13 | | that personal property was received by a florist located |
14 | | outside Illinois who has a florist located inside Illinois |
15 | | deliver the personal property. |
16 | | (20) Semen used for artificial insemination of livestock |
17 | | for direct agricultural production. |
18 | | (21) Horses, or interests in horses, registered with and |
19 | | meeting the requirements of any of the Arabian Horse Club |
20 | | Registry of America, Appaloosa Horse Club, American Quarter |
21 | | Horse Association, United States Trotting Association, or |
22 | | Jockey Club, as appropriate, used for purposes of breeding or |
23 | | racing for prizes. This item (21) is exempt from the |
24 | | provisions of Section 3-90, and the exemption provided for |
25 | | under this item (21) applies for all periods beginning May 30, |
26 | | 1995, but no claim for credit or refund is allowed on or after |
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1 | | January 1, 2008 for such taxes paid during the period |
2 | | beginning May 30, 2000 and ending on January 1, 2008. |
3 | | (22) Computers and communications equipment utilized for |
4 | | any hospital purpose and equipment used in the diagnosis, |
5 | | analysis, or treatment of hospital patients purchased by a |
6 | | lessor who leases the equipment, under a lease of one year or |
7 | | longer executed or in effect at the time the lessor would |
8 | | otherwise be subject to the tax imposed by this Act, to a |
9 | | hospital that has been issued an active tax exemption |
10 | | identification number by the Department under Section 1g of |
11 | | the Retailers' Occupation Tax Act. If the equipment is leased |
12 | | in a manner that does not qualify for this exemption or is used |
13 | | in any other non-exempt manner, the lessor shall be liable for |
14 | | the tax imposed under this Act or the Service Use Tax Act, as |
15 | | the case may be, based on the fair market value of the property |
16 | | at the time the non-qualifying use occurs. No lessor shall |
17 | | collect or attempt to collect an amount (however designated) |
18 | | that purports to reimburse that lessor for the tax imposed by |
19 | | this Act or the Service Use Tax Act, as the case may be, if the |
20 | | tax has not been paid by the lessor. If a lessor improperly |
21 | | collects any such amount from the lessee, the lessee shall |
22 | | have a legal right to claim a refund of that amount from the |
23 | | lessor. If, however, that amount is not refunded to the lessee |
24 | | for any reason, the lessor is liable to pay that amount to the |
25 | | Department. |
26 | | (23) Personal property purchased by a lessor who leases |
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1 | | the property, under a lease of one year or longer executed or |
2 | | in effect at the time the lessor would otherwise be subject to |
3 | | the tax imposed by this Act, to a governmental body that has |
4 | | been issued an active sales tax exemption identification |
5 | | number by the Department under Section 1g of the Retailers' |
6 | | Occupation Tax Act. If the property is leased in a manner that |
7 | | does not qualify for this exemption or used in any other |
8 | | non-exempt manner, the lessor shall be liable for the tax |
9 | | imposed under this Act or the Service Use Tax Act, as the case |
10 | | may be, based on the fair market value of the property at the |
11 | | time the non-qualifying use occurs. No lessor shall collect or |
12 | | attempt to collect an amount (however designated) that |
13 | | purports to reimburse that lessor for the tax imposed by this |
14 | | Act or the Service Use Tax Act, as the case may be, if the tax |
15 | | has not been paid by the lessor. If a lessor improperly |
16 | | collects any such amount from the lessee, the lessee shall |
17 | | have a legal right to claim a refund of that amount from the |
18 | | lessor. If, however, that amount is not refunded to the lessee |
19 | | for any reason, the lessor is liable to pay that amount to the |
20 | | Department. |
21 | | (24) Beginning with taxable years ending on or after |
22 | | December 31, 1995 and ending with taxable years ending on or |
23 | | before December 31, 2004, personal property that is donated |
24 | | for disaster relief to be used in a State or federally declared |
25 | | disaster area in Illinois or bordering Illinois by a |
26 | | manufacturer or retailer that is registered in this State to a |
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1 | | corporation, society, association, foundation, or institution |
2 | | that has been issued a sales tax exemption identification |
3 | | number by the Department that assists victims of the disaster |
4 | | who reside within the declared disaster area. |
5 | | (25) Beginning with taxable years ending on or after |
6 | | December 31, 1995 and ending with taxable years ending on or |
7 | | before December 31, 2004, personal property that is used in |
8 | | the performance of infrastructure repairs in this State, |
9 | | including , but not limited to , municipal roads and streets, |
10 | | access roads, bridges, sidewalks, waste disposal systems, |
11 | | water and sewer line extensions, water distribution and |
12 | | purification facilities, storm water drainage and retention |
13 | | facilities, and sewage treatment facilities, resulting from a |
14 | | State or federally declared disaster in Illinois or bordering |
15 | | Illinois when such repairs are initiated on facilities located |
16 | | in the declared disaster area within 6 months after the |
17 | | disaster. |
18 | | (26) Beginning July 1, 1999, game or game birds purchased |
19 | | at a "game breeding and hunting preserve area" as that term is |
20 | | used in the Wildlife Code. This paragraph is exempt from the |
21 | | provisions of Section 3-90. |
22 | | (27) A motor vehicle, as that term is defined in Section |
23 | | 1-146 of the Illinois Vehicle Code, that is donated to a |
24 | | corporation, limited liability company, society, association, |
25 | | foundation, or institution that is determined by the |
26 | | Department to be organized and operated exclusively for |
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1 | | educational purposes. For purposes of this exemption, "a |
2 | | corporation, limited liability company, society, association, |
3 | | foundation, or institution organized and operated exclusively |
4 | | for educational purposes" means all tax-supported public |
5 | | schools, private schools that offer systematic instruction in |
6 | | useful branches of learning by methods common to public |
7 | | schools and that compare favorably in their scope and |
8 | | intensity with the course of study presented in tax-supported |
9 | | schools, and vocational or technical schools or institutes |
10 | | organized and operated exclusively to provide a course of |
11 | | study of not less than 6 weeks duration and designed to prepare |
12 | | individuals to follow a trade or to pursue a manual, |
13 | | technical, mechanical, industrial, business, or commercial |
14 | | occupation. |
15 | | (28) Beginning January 1, 2000, personal property, |
16 | | including food, purchased through fundraising events for the |
17 | | benefit of a public or private elementary or secondary school, |
18 | | a group of those schools, or one or more school districts if |
19 | | the events are sponsored by an entity recognized by the school |
20 | | district that consists primarily of volunteers and includes |
21 | | parents and teachers of the school children. This paragraph |
22 | | does not apply to fundraising events (i) for the benefit of |
23 | | private home instruction or (ii) for which the fundraising |
24 | | entity purchases the personal property sold at the events from |
25 | | another individual or entity that sold the property for the |
26 | | purpose of resale by the fundraising entity and that profits |
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1 | | from the sale to the fundraising entity. This paragraph is |
2 | | exempt from the provisions of Section 3-90. |
3 | | (29) Beginning January 1, 2000 and through December 31, |
4 | | 2001, new or used automatic vending machines that prepare and |
5 | | serve hot food and beverages, including coffee, soup, and |
6 | | other items, and replacement parts for these machines. |
7 | | Beginning January 1, 2002 and through June 30, 2003, machines |
8 | | and parts for machines used in commercial, coin-operated |
9 | | amusement and vending business if a use or occupation tax is |
10 | | paid on the gross receipts derived from the use of the |
11 | | commercial, coin-operated amusement and vending machines. This |
12 | | paragraph is exempt from the provisions of Section 3-90. |
13 | | (30) Beginning January 1, 2001 and through June 30, 2016, |
14 | | food for human consumption that is to be consumed off the |
15 | | premises where it is sold (other than alcoholic beverages, |
16 | | soft drinks, and food that has been prepared for immediate |
17 | | consumption) and prescription and nonprescription medicines, |
18 | | drugs, medical appliances, and insulin, urine testing |
19 | | materials, syringes, and needles used by diabetics, for human |
20 | | use, when purchased for use by a person receiving medical |
21 | | assistance under Article V of the Illinois Public Aid Code who |
22 | | resides in a licensed long-term care facility, as defined in |
23 | | the Nursing Home Care Act, or in a licensed facility as defined |
24 | | in the ID/DD Community Care Act, the MC/DD Act, or the |
25 | | Specialized Mental Health Rehabilitation Act of 2013. |
26 | | (31) Beginning on August 2, 2001 (the effective date of |
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1 | | Public Act 92-227), computers and communications equipment |
2 | | utilized for any hospital purpose and equipment used in the |
3 | | diagnosis, analysis, or treatment of hospital patients |
4 | | purchased by a lessor who leases the equipment, under a lease |
5 | | of one year or longer executed or in effect at the time the |
6 | | lessor would otherwise be subject to the tax imposed by this |
7 | | Act, to a hospital that has been issued an active tax exemption |
8 | | identification number by the Department under Section 1g of |
9 | | the Retailers' Occupation Tax Act. If the equipment is leased |
10 | | in a manner that does not qualify for this exemption or is used |
11 | | in any other nonexempt manner, the lessor shall be liable for |
12 | | the tax imposed under this Act or the Service Use Tax Act, as |
13 | | the case may be, based on the fair market value of the property |
14 | | at the time the nonqualifying use occurs. No lessor shall |
15 | | collect or attempt to collect an amount (however designated) |
16 | | that purports to reimburse that lessor for the tax imposed by |
17 | | this Act or the Service Use Tax Act, as the case may be, if the |
18 | | tax has not been paid by the lessor. If a lessor improperly |
19 | | collects any such amount from the lessee, the lessee shall |
20 | | have a legal right to claim a refund of that amount from the |
21 | | lessor. If, however, that amount is not refunded to the lessee |
22 | | for any reason, the lessor is liable to pay that amount to the |
23 | | Department. This paragraph is exempt from the provisions of |
24 | | Section 3-90. |
25 | | (32) Beginning on August 2, 2001 (the effective date of |
26 | | Public Act 92-227), personal property purchased by a lessor |
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1 | | who leases the property, under a lease of one year or longer |
2 | | executed or in effect at the time the lessor would otherwise be |
3 | | subject to the tax imposed by this Act, to a governmental body |
4 | | that has been issued an active sales tax exemption |
5 | | identification number by the Department under Section 1g of |
6 | | the Retailers' Occupation Tax Act. If the property is leased |
7 | | in a manner that does not qualify for this exemption or used in |
8 | | any other nonexempt manner, the lessor shall be liable for the |
9 | | tax imposed under this Act or the Service Use Tax Act, as the |
10 | | case may be, based on the fair market value of the property at |
11 | | the time the nonqualifying use occurs. No lessor shall collect |
12 | | or attempt to collect an amount (however designated) that |
13 | | purports to reimburse that lessor for the tax imposed by this |
14 | | Act or the Service Use Tax Act, as the case may be, if the tax |
15 | | has not been paid by the lessor. If a lessor improperly |
16 | | collects any such amount from the lessee, the lessee shall |
17 | | have a legal right to claim a refund of that amount from the |
18 | | lessor. If, however, that amount is not refunded to the lessee |
19 | | for any reason, the lessor is liable to pay that amount to the |
20 | | Department. This paragraph is exempt from the provisions of |
21 | | Section 3-90. |
22 | | (33) On and after July 1, 2003 and through June 30, 2004, |
23 | | the use in this State of motor vehicles of the second division |
24 | | with a gross vehicle weight in excess of 8,000 pounds and that |
25 | | are subject to the commercial distribution fee imposed under |
26 | | Section 3-815.1 of the Illinois Vehicle Code. Beginning on |
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1 | | July 1, 2004 and through June 30, 2005, the use in this State |
2 | | of motor vehicles of the second division: (i) with a gross |
3 | | vehicle weight rating in excess of 8,000 pounds; (ii) that are |
4 | | subject to the commercial distribution fee imposed under |
5 | | Section 3-815.1 of the Illinois Vehicle Code; and (iii) that |
6 | | are primarily used for commercial purposes. Through June 30, |
7 | | 2005, this exemption applies to repair and replacement parts |
8 | | added after the initial purchase of such a motor vehicle if |
9 | | that motor vehicle is used in a manner that would qualify for |
10 | | the rolling stock exemption otherwise provided for in this |
11 | | Act. For purposes of this paragraph, the term "used for |
12 | | commercial purposes" means the transportation of persons or |
13 | | property in furtherance of any commercial or industrial |
14 | | enterprise, whether for-hire or not. |
15 | | (34) Beginning January 1, 2008, tangible personal property |
16 | | used in the construction or maintenance of a community water |
17 | | supply, as defined under Section 3.145 of the Environmental |
18 | | Protection Act, that is operated by a not-for-profit |
19 | | corporation that holds a valid water supply permit issued |
20 | | under Title IV of the Environmental Protection Act. This |
21 | | paragraph is exempt from the provisions of Section 3-90. |
22 | | (35) Beginning January 1, 2010 and continuing through |
23 | | December 31, 2029, materials, parts, equipment, components, |
24 | | and furnishings incorporated into or upon an aircraft as part |
25 | | of the modification, refurbishment, completion, replacement, |
26 | | repair, or maintenance of the aircraft. This exemption |
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1 | | includes consumable supplies used in the modification, |
2 | | refurbishment, completion, replacement, repair, and |
3 | | maintenance of aircraft. However, until January 1, 2024, this |
4 | | exemption excludes any materials, parts, equipment, |
5 | | components, and consumable supplies used in the modification, |
6 | | replacement, repair, and maintenance of aircraft engines or |
7 | | power plants, whether such engines or power plants are |
8 | | installed or uninstalled upon any such aircraft. "Consumable |
9 | | supplies" include, but are not limited to, adhesive, tape, |
10 | | sandpaper, general purpose lubricants, cleaning solution, |
11 | | latex gloves, and protective films. |
12 | | Beginning January 1, 2010 and continuing through December |
13 | | 31, 2023, this exemption applies only to the use of qualifying |
14 | | tangible personal property by persons who modify, refurbish, |
15 | | complete, repair, replace, or maintain aircraft and who (i) |
16 | | hold an Air Agency Certificate and are empowered to operate an |
17 | | approved repair station by the Federal Aviation |
18 | | Administration, (ii) have a Class IV Rating, and (iii) conduct |
19 | | operations in accordance with Part 145 of the Federal Aviation |
20 | | Regulations. From January 1, 2024 through December 31, 2029, |
21 | | this exemption applies only to the use of qualifying tangible |
22 | | personal property by: (A) persons who modify, refurbish, |
23 | | complete, repair, replace, or maintain aircraft and who (i) |
24 | | hold an Air Agency Certificate and are empowered to operate an |
25 | | approved repair station by the Federal Aviation |
26 | | Administration, (ii) have a Class IV Rating, and (iii) conduct |
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1 | | operations in accordance with Part 145 of the Federal Aviation |
2 | | Regulations; and (B) persons who engage in the modification, |
3 | | replacement, repair, and maintenance of aircraft engines or |
4 | | power plants without regard to whether or not those persons |
5 | | meet the qualifications of item (A). |
6 | | The exemption does not include aircraft operated by a |
7 | | commercial air carrier providing scheduled passenger air |
8 | | service pursuant to authority issued under Part 121 or Part |
9 | | 129 of the Federal Aviation Regulations. The changes made to |
10 | | this paragraph (35) by Public Act 98-534 are declarative of |
11 | | existing law. It is the intent of the General Assembly that the |
12 | | exemption under this paragraph (35) applies continuously from |
13 | | January 1, 2010 through December 31, 2024; however, no claim |
14 | | for credit or refund is allowed for taxes paid as a result of |
15 | | the disallowance of this exemption on or after January 1, 2015 |
16 | | and prior to February 5, 2020 (the effective date of Public Act |
17 | | 101-629). |
18 | | (36) Tangible personal property purchased by a |
19 | | public-facilities corporation, as described in Section |
20 | | 11-65-10 of the Illinois Municipal Code, for purposes of |
21 | | constructing or furnishing a municipal convention hall, but |
22 | | only if the legal title to the municipal convention hall is |
23 | | transferred to the municipality without any further |
24 | | consideration by or on behalf of the municipality at the time |
25 | | of the completion of the municipal convention hall or upon the |
26 | | retirement or redemption of any bonds or other debt |
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1 | | instruments issued by the public-facilities corporation in |
2 | | connection with the development of the municipal convention |
3 | | hall. This exemption includes existing public-facilities |
4 | | corporations as provided in Section 11-65-25 of the Illinois |
5 | | Municipal Code. This paragraph is exempt from the provisions |
6 | | of Section 3-90. |
7 | | (37) Beginning January 1, 2017 and through December 31, |
8 | | 2026, menstrual pads, tampons, and menstrual cups. |
9 | | (38) Merchandise that is subject to the Rental Purchase |
10 | | Agreement Occupation and Use Tax. The purchaser must certify |
11 | | that the item is purchased to be rented subject to a |
12 | | rental-purchase rental purchase agreement, as defined in the |
13 | | Rental-Purchase Rental Purchase Agreement Act, and provide |
14 | | proof of registration under the Rental Purchase Agreement |
15 | | Occupation and Use Tax Act. This paragraph is exempt from the |
16 | | provisions of Section 3-90. |
17 | | (39) Tangible personal property purchased by a purchaser |
18 | | who is exempt from the tax imposed by this Act by operation of |
19 | | federal law. This paragraph is exempt from the provisions of |
20 | | Section 3-90. |
21 | | (40) Qualified tangible personal property used in the |
22 | | construction or operation of a data center that has been |
23 | | granted a certificate of exemption by the Department of |
24 | | Commerce and Economic Opportunity, whether that tangible |
25 | | personal property is purchased by the owner, operator, or |
26 | | tenant of the data center or by a contractor or subcontractor |
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1 | | of the owner, operator, or tenant. Data centers that would |
2 | | have qualified for a certificate of exemption prior to January |
3 | | 1, 2020 had Public Act 101-31 been in effect may apply for and |
4 | | obtain an exemption for subsequent purchases of computer |
5 | | equipment or enabling software purchased or leased to upgrade, |
6 | | supplement, or replace computer equipment or enabling software |
7 | | purchased or leased in the original investment that would have |
8 | | qualified. |
9 | | The Department of Commerce and Economic Opportunity shall |
10 | | grant a certificate of exemption under this item (40) to |
11 | | qualified data centers as defined by Section 605-1025 of the |
12 | | Department of Commerce and Economic Opportunity Law of the |
13 | | Civil Administrative Code of Illinois. |
14 | | For the purposes of this item (40): |
15 | | "Data center" means a building or a series of |
16 | | buildings rehabilitated or constructed to house working |
17 | | servers in one physical location or multiple sites within |
18 | | the State of Illinois. |
19 | | "Qualified tangible personal property" means: |
20 | | electrical systems and equipment; climate control and |
21 | | chilling equipment and systems; mechanical systems and |
22 | | equipment; monitoring and secure systems; emergency |
23 | | generators; hardware; computers; servers; data storage |
24 | | devices; network connectivity equipment; racks; cabinets; |
25 | | telecommunications cabling infrastructure; raised floor |
26 | | systems; peripheral components or systems; software; |
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1 | | mechanical, electrical, or plumbing systems; battery |
2 | | systems; cooling systems and towers; temperature control |
3 | | systems; other cabling; and other data center |
4 | | infrastructure equipment and systems necessary to operate |
5 | | qualified tangible personal property, including fixtures; |
6 | | and component parts of any of the foregoing, including |
7 | | installation, maintenance, repair, refurbishment, and |
8 | | replacement of qualified tangible personal property to |
9 | | generate, transform, transmit, distribute, or manage |
10 | | electricity necessary to operate qualified tangible |
11 | | personal property; and all other tangible personal |
12 | | property that is essential to the operations of a computer |
13 | | data center. The term "qualified tangible personal |
14 | | property" also includes building materials physically |
15 | | incorporated into in to the qualifying data center. To |
16 | | document the exemption allowed under this Section, the |
17 | | retailer must obtain from the purchaser a copy of the |
18 | | certificate of eligibility issued by the Department of |
19 | | Commerce and Economic Opportunity. |
20 | | This item (40) is exempt from the provisions of Section |
21 | | 3-90. |
22 | | (41) Beginning July 1, 2022, breast pumps, breast pump |
23 | | collection and storage supplies, and breast pump kits. This |
24 | | item (41) is exempt from the provisions of Section 3-90. As |
25 | | used in this item (41): |
26 | | "Breast pump" means an electrically controlled or |
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1 | | manually controlled pump device designed or marketed to be |
2 | | used to express milk from a human breast during lactation, |
3 | | including the pump device and any battery, AC adapter, or |
4 | | other power supply unit that is used to power the pump |
5 | | device and is packaged and sold with the pump device at the |
6 | | time of sale. |
7 | | "Breast pump collection and storage supplies" means |
8 | | items of tangible personal property designed or marketed |
9 | | to be used in conjunction with a breast pump to collect |
10 | | milk expressed from a human breast and to store collected |
11 | | milk until it is ready for consumption. |
12 | | "Breast pump collection and storage supplies" |
13 | | includes, but is not limited to: breast shields and breast |
14 | | shield connectors; breast pump tubes and tubing adapters; |
15 | | breast pump valves and membranes; backflow protectors and |
16 | | backflow protector adaptors; bottles and bottle caps |
17 | | specific to the operation of the breast pump; and breast |
18 | | milk storage bags. |
19 | | "Breast pump collection and storage supplies" does not |
20 | | include: (1) bottles and bottle caps not specific to the |
21 | | operation of the breast pump; (2) breast pump travel bags |
22 | | and other similar carrying accessories, including ice |
23 | | packs, labels, and other similar products; (3) breast pump |
24 | | cleaning supplies; (4) nursing bras, bra pads, breast |
25 | | shells, and other similar products; and (5) creams, |
26 | | ointments, and other similar products that relieve |
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1 | | breastfeeding-related symptoms or conditions of the |
2 | | breasts or nipples, unless sold as part of a breast pump |
3 | | kit that is pre-packaged by the breast pump manufacturer |
4 | | or distributor. |
5 | | "Breast pump kit" means a kit that: (1) contains no |
6 | | more than a breast pump, breast pump collection and |
7 | | storage supplies, a rechargeable battery for operating the |
8 | | breast pump, a breastmilk cooler, bottle stands, ice |
9 | | packs, and a breast pump carrying case; and (2) is |
10 | | pre-packaged as a breast pump kit by the breast pump |
11 | | manufacturer or distributor. |
12 | | (42) Tangible personal property sold by or on behalf of |
13 | | the State Treasurer pursuant to the Revised Uniform Unclaimed |
14 | | Property Act. This item (42) is exempt from the provisions of |
15 | | Section 3-90. |
16 | | (43) Beginning on January 1, 2024, tangible personal |
17 | | property purchased by an active duty member of the armed |
18 | | forces of the United States who presents valid military |
19 | | identification and purchases the property using a form of |
20 | | payment where the federal government is the payor. The member |
21 | | of the armed forces must complete, at the point of sale, a form |
22 | | prescribed by the Department of Revenue documenting that the |
23 | | transaction is eligible for the exemption under this |
24 | | paragraph. Retailers must keep the form as documentation of |
25 | | the exemption in their records for a period of not less than 6 |
26 | | years. "Armed forces of the United States" means the United |
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1 | | States Army, Navy, Air Force, Marine Corps, or Coast Guard. |
2 | | This paragraph is exempt from the provisions of Section 3-90. |
3 | | (44) Tangible personal property to be used or consumed |
4 | | within a quantum computing campus enterprise zone designated |
5 | | by the Department of Commerce and Economic Opportunity under |
6 | | Section 605-1115 of the Department of Commerce and Economic |
7 | | Opportunity Law of the Civil Administrative Code of Illinois. |
8 | | This paragraph is exempt from the provisions of Section 3-90. |
9 | | (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, |
10 | | Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5, |
11 | | eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5, |
12 | | Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5, |
13 | | eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; |
14 | | revised 12-12-23.) |
15 | | Section 40. The Service Use Tax Act is amended by changing |
16 | | Section 3-5 as follows: |
17 | | (35 ILCS 110/3-5) |
18 | | Sec. 3-5. Exemptions. Use of the following tangible |
19 | | personal property is exempt from the tax imposed by this Act: |
20 | | (1) Personal property purchased from a corporation, |
21 | | society, association, foundation, institution, or |
22 | | organization, other than a limited liability company, that is |
23 | | organized and operated as a not-for-profit service enterprise |
24 | | for the benefit of persons 65 years of age or older if the |
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1 | | personal property was not purchased by the enterprise for the |
2 | | purpose of resale by the enterprise. |
3 | | (2) Personal property purchased by a non-profit Illinois |
4 | | county fair association for use in conducting, operating, or |
5 | | promoting the county fair. |
6 | | (3) Personal property purchased by a not-for-profit arts |
7 | | or cultural organization that establishes, by proof required |
8 | | by the Department by rule, that it has received an exemption |
9 | | under Section 501(c)(3) of the Internal Revenue Code and that |
10 | | is organized and operated primarily for the presentation or |
11 | | support of arts or cultural programming, activities, or |
12 | | services. These organizations include, but are not limited to, |
13 | | music and dramatic arts organizations such as symphony |
14 | | orchestras and theatrical groups, arts and cultural service |
15 | | organizations, local arts councils, visual arts organizations, |
16 | | and media arts organizations. On and after July 1, 2001 (the |
17 | | effective date of Public Act 92-35), however, an entity |
18 | | otherwise eligible for this exemption shall not make tax-free |
19 | | purchases unless it has an active identification number issued |
20 | | by the Department. |
21 | | (4) Legal tender, currency, medallions, or gold or silver |
22 | | coinage issued by the State of Illinois, the government of the |
23 | | United States of America, or the government of any foreign |
24 | | country, and bullion. |
25 | | (5) Until July 1, 2003 and beginning again on September 1, |
26 | | 2004 through August 30, 2014, graphic arts machinery and |
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1 | | equipment, including repair and replacement parts, both new |
2 | | and used, and including that manufactured on special order or |
3 | | purchased for lease, certified by the purchaser to be used |
4 | | primarily for graphic arts production. Equipment includes |
5 | | chemicals or chemicals acting as catalysts but only if the |
6 | | chemicals or chemicals acting as catalysts effect a direct and |
7 | | immediate change upon a graphic arts product. Beginning on |
8 | | July 1, 2017, graphic arts machinery and equipment is included |
9 | | in the manufacturing and assembling machinery and equipment |
10 | | exemption under Section 2 of this Act. |
11 | | (6) Personal property purchased from a teacher-sponsored |
12 | | student organization affiliated with an elementary or |
13 | | secondary school located in Illinois. |
14 | | (7) Farm machinery and equipment, both new and used, |
15 | | including that manufactured on special order, certified by the |
16 | | purchaser to be used primarily for production agriculture or |
17 | | State or federal agricultural programs, including individual |
18 | | replacement parts for the machinery and equipment, including |
19 | | machinery and equipment purchased for lease, and including |
20 | | implements of husbandry defined in Section 1-130 of the |
21 | | Illinois Vehicle Code, farm machinery and agricultural |
22 | | chemical and fertilizer spreaders, and nurse wagons required |
23 | | to be registered under Section 3-809 of the Illinois Vehicle |
24 | | Code, but excluding other motor vehicles required to be |
25 | | registered under the Illinois Vehicle Code. Horticultural |
26 | | polyhouses or hoop houses used for propagating, growing, or |
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1 | | overwintering plants shall be considered farm machinery and |
2 | | equipment under this item (7). Agricultural chemical tender |
3 | | tanks and dry boxes shall include units sold separately from a |
4 | | motor vehicle required to be licensed and units sold mounted |
5 | | on a motor vehicle required to be licensed if the selling price |
6 | | of the tender is separately stated. |
7 | | Farm machinery and equipment shall include precision |
8 | | farming equipment that is installed or purchased to be |
9 | | installed on farm machinery and equipment , including, but not |
10 | | limited to, tractors, harvesters, sprayers, planters, seeders, |
11 | | or spreaders. Precision farming equipment includes, but is not |
12 | | limited to, soil testing sensors, computers, monitors, |
13 | | software, global positioning and mapping systems, and other |
14 | | such equipment. |
15 | | Farm machinery and equipment also includes computers, |
16 | | sensors, software, and related equipment used primarily in the |
17 | | computer-assisted operation of production agriculture |
18 | | facilities, equipment, and activities such as, but not limited |
19 | | to, the collection, monitoring, and correlation of animal and |
20 | | crop data for the purpose of formulating animal diets and |
21 | | agricultural chemicals. |
22 | | Beginning on January 1, 2024, farm machinery and equipment |
23 | | also includes electrical power generation equipment used |
24 | | primarily for production agriculture. |
25 | | This item (7) is exempt from the provisions of Section |
26 | | 3-75. |
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1 | | (8) Until June 30, 2013, fuel and petroleum products sold |
2 | | to or used by an air common carrier, certified by the carrier |
3 | | to be used for consumption, shipment, or storage in the |
4 | | conduct of its business as an air common carrier, for a flight |
5 | | destined for or returning from a location or locations outside |
6 | | the United States without regard to previous or subsequent |
7 | | domestic stopovers. |
8 | | Beginning July 1, 2013, fuel and petroleum products sold |
9 | | to or used by an air carrier, certified by the carrier to be |
10 | | used for consumption, shipment, or storage in the conduct of |
11 | | its business as an air common carrier, for a flight that (i) is |
12 | | engaged in foreign trade or is engaged in trade between the |
13 | | United States and any of its possessions and (ii) transports |
14 | | at least one individual or package for hire from the city of |
15 | | origination to the city of final destination on the same |
16 | | aircraft, without regard to a change in the flight number of |
17 | | that aircraft. |
18 | | (9) Proceeds of mandatory service charges separately |
19 | | stated on customers' bills for the purchase and consumption of |
20 | | food and beverages acquired as an incident to the purchase of a |
21 | | service from a serviceman, to the extent that the proceeds of |
22 | | the service charge are in fact turned over as tips or as a |
23 | | substitute for tips to the employees who participate directly |
24 | | in preparing, serving, hosting or cleaning up the food or |
25 | | beverage function with respect to which the service charge is |
26 | | imposed. |
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1 | | (10) Until July 1, 2003, oil field exploration, drilling, |
2 | | and production equipment, including (i) rigs and parts of |
3 | | rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) |
4 | | pipe and tubular goods, including casing and drill strings, |
5 | | (iii) pumps and pump-jack units, (iv) storage tanks and flow |
6 | | lines, (v) any individual replacement part for oil field |
7 | | exploration, drilling, and production equipment, and (vi) |
8 | | machinery and equipment purchased for lease; but excluding |
9 | | motor vehicles required to be registered under the Illinois |
10 | | Vehicle Code. |
11 | | (11) Proceeds from the sale of photoprocessing machinery |
12 | | and equipment, including repair and replacement parts, both |
13 | | new and used, including that manufactured on special order, |
14 | | certified by the purchaser to be used primarily for |
15 | | photoprocessing, and including photoprocessing machinery and |
16 | | equipment purchased for lease. |
17 | | (12) Until July 1, 2028, coal and aggregate exploration, |
18 | | mining, off-highway hauling, processing, maintenance, and |
19 | | reclamation equipment, including replacement parts and |
20 | | equipment, and including equipment purchased for lease, but |
21 | | excluding motor vehicles required to be registered under the |
22 | | Illinois Vehicle Code. The changes made to this Section by |
23 | | Public Act 97-767 apply on and after July 1, 2003, but no claim |
24 | | for credit or refund is allowed on or after August 16, 2013 |
25 | | (the effective date of Public Act 98-456) for such taxes paid |
26 | | during the period beginning July 1, 2003 and ending on August |
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1 | | 16, 2013 (the effective date of Public Act 98-456). |
2 | | (13) Semen used for artificial insemination of livestock |
3 | | for direct agricultural production. |
4 | | (14) Horses, or interests in horses, registered with and |
5 | | meeting the requirements of any of the Arabian Horse Club |
6 | | Registry of America, Appaloosa Horse Club, American Quarter |
7 | | Horse Association, United States Trotting Association, or |
8 | | Jockey Club, as appropriate, used for purposes of breeding or |
9 | | racing for prizes. This item (14) is exempt from the |
10 | | provisions of Section 3-75, and the exemption provided for |
11 | | under this item (14) applies for all periods beginning May 30, |
12 | | 1995, but no claim for credit or refund is allowed on or after |
13 | | January 1, 2008 (the effective date of Public Act 95-88) for |
14 | | such taxes paid during the period beginning May 30, 2000 and |
15 | | ending on January 1, 2008 (the effective date of Public Act |
16 | | 95-88). |
17 | | (15) Computers and communications equipment utilized for |
18 | | any hospital purpose and equipment used in the diagnosis, |
19 | | analysis, or treatment of hospital patients purchased by a |
20 | | lessor who leases the equipment, under a lease of one year or |
21 | | longer executed or in effect at the time the lessor would |
22 | | otherwise be subject to the tax imposed by this Act, to a |
23 | | hospital that has been issued an active tax exemption |
24 | | identification number by the Department under Section 1g of |
25 | | the Retailers' Occupation Tax Act. If the equipment is leased |
26 | | in a manner that does not qualify for this exemption or is used |
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1 | | in any other non-exempt manner, the lessor shall be liable for |
2 | | the tax imposed under this Act or the Use Tax Act, as the case |
3 | | may be, based on the fair market value of the property at the |
4 | | time the non-qualifying use occurs. No lessor shall collect or |
5 | | attempt to collect an amount (however designated) that |
6 | | purports to reimburse that lessor for the tax imposed by this |
7 | | Act or the Use Tax Act, as the case may be, if the tax has not |
8 | | been paid by the lessor. If a lessor improperly collects any |
9 | | such amount from the lessee, the lessee shall have a legal |
10 | | right to claim a refund of that amount from the lessor. If, |
11 | | however, that amount is not refunded to the lessee for any |
12 | | reason, the lessor is liable to pay that amount to the |
13 | | Department. |
14 | | (16) Personal property purchased by a lessor who leases |
15 | | the property, under a lease of one year or longer executed or |
16 | | in effect at the time the lessor would otherwise be subject to |
17 | | the tax imposed by this Act, to a governmental body that has |
18 | | been issued an active tax exemption identification number by |
19 | | the Department under Section 1g of the Retailers' Occupation |
20 | | Tax Act. If the property is leased in a manner that does not |
21 | | qualify for this exemption or is used in any other non-exempt |
22 | | manner, the lessor shall be liable for the tax imposed under |
23 | | this Act or the Use Tax Act, as the case may be, based on the |
24 | | fair market value of the property at the time the |
25 | | non-qualifying use occurs. No lessor shall collect or attempt |
26 | | to collect an amount (however designated) that purports to |
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1 | | reimburse that lessor for the tax imposed by this Act or the |
2 | | Use Tax Act, as the case may be, if the tax has not been paid |
3 | | by the lessor. If a lessor improperly collects any such amount |
4 | | from the lessee, the lessee shall have a legal right to claim a |
5 | | refund of that amount from the lessor. If, however, that |
6 | | amount is not refunded to the lessee for any reason, the lessor |
7 | | is liable to pay that amount to the Department. |
8 | | (17) Beginning with taxable years ending on or after |
9 | | December 31, 1995 and ending with taxable years ending on or |
10 | | before December 31, 2004, personal property that is donated |
11 | | for disaster relief to be used in a State or federally declared |
12 | | disaster area in Illinois or bordering Illinois by a |
13 | | manufacturer or retailer that is registered in this State to a |
14 | | corporation, society, association, foundation, or institution |
15 | | that has been issued a sales tax exemption identification |
16 | | number by the Department that assists victims of the disaster |
17 | | who reside within the declared disaster area. |
18 | | (18) Beginning with taxable years ending on or after |
19 | | December 31, 1995 and ending with taxable years ending on or |
20 | | before December 31, 2004, personal property that is used in |
21 | | the performance of infrastructure repairs in this State, |
22 | | including , but not limited to , municipal roads and streets, |
23 | | access roads, bridges, sidewalks, waste disposal systems, |
24 | | water and sewer line extensions, water distribution and |
25 | | purification facilities, storm water drainage and retention |
26 | | facilities, and sewage treatment facilities, resulting from a |
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1 | | State or federally declared disaster in Illinois or bordering |
2 | | Illinois when such repairs are initiated on facilities located |
3 | | in the declared disaster area within 6 months after the |
4 | | disaster. |
5 | | (19) Beginning July 1, 1999, game or game birds purchased |
6 | | at a "game breeding and hunting preserve area" as that term is |
7 | | used in the Wildlife Code. This paragraph is exempt from the |
8 | | provisions of Section 3-75. |
9 | | (20) A motor vehicle, as that term is defined in Section |
10 | | 1-146 of the Illinois Vehicle Code, that is donated to a |
11 | | corporation, limited liability company, society, association, |
12 | | foundation, or institution that is determined by the |
13 | | Department to be organized and operated exclusively for |
14 | | educational purposes. For purposes of this exemption, "a |
15 | | corporation, limited liability company, society, association, |
16 | | foundation, or institution organized and operated exclusively |
17 | | for educational purposes" means all tax-supported public |
18 | | schools, private schools that offer systematic instruction in |
19 | | useful branches of learning by methods common to public |
20 | | schools and that compare favorably in their scope and |
21 | | intensity with the course of study presented in tax-supported |
22 | | schools, and vocational or technical schools or institutes |
23 | | organized and operated exclusively to provide a course of |
24 | | study of not less than 6 weeks duration and designed to prepare |
25 | | individuals to follow a trade or to pursue a manual, |
26 | | technical, mechanical, industrial, business, or commercial |
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1 | | occupation. |
2 | | (21) Beginning January 1, 2000, personal property, |
3 | | including food, purchased through fundraising events for the |
4 | | benefit of a public or private elementary or secondary school, |
5 | | a group of those schools, or one or more school districts if |
6 | | the events are sponsored by an entity recognized by the school |
7 | | district that consists primarily of volunteers and includes |
8 | | parents and teachers of the school children. This paragraph |
9 | | does not apply to fundraising events (i) for the benefit of |
10 | | private home instruction or (ii) for which the fundraising |
11 | | entity purchases the personal property sold at the events from |
12 | | another individual or entity that sold the property for the |
13 | | purpose of resale by the fundraising entity and that profits |
14 | | from the sale to the fundraising entity. This paragraph is |
15 | | exempt from the provisions of Section 3-75. |
16 | | (22) Beginning January 1, 2000 and through December 31, |
17 | | 2001, new or used automatic vending machines that prepare and |
18 | | serve hot food and beverages, including coffee, soup, and |
19 | | other items, and replacement parts for these machines. |
20 | | Beginning January 1, 2002 and through June 30, 2003, machines |
21 | | and parts for machines used in commercial, coin-operated |
22 | | amusement and vending business if a use or occupation tax is |
23 | | paid on the gross receipts derived from the use of the |
24 | | commercial, coin-operated amusement and vending machines. This |
25 | | paragraph is exempt from the provisions of Section 3-75. |
26 | | (23) Beginning August 23, 2001 and through June 30, 2016, |
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1 | | food for human consumption that is to be consumed off the |
2 | | premises where it is sold (other than alcoholic beverages, |
3 | | soft drinks, and food that has been prepared for immediate |
4 | | consumption) and prescription and nonprescription medicines, |
5 | | drugs, medical appliances, and insulin, urine testing |
6 | | materials, syringes, and needles used by diabetics, for human |
7 | | use, when purchased for use by a person receiving medical |
8 | | assistance under Article V of the Illinois Public Aid Code who |
9 | | resides in a licensed long-term care facility, as defined in |
10 | | the Nursing Home Care Act, or in a licensed facility as defined |
11 | | in the ID/DD Community Care Act, the MC/DD Act, or the |
12 | | Specialized Mental Health Rehabilitation Act of 2013. |
13 | | (24) Beginning on August 2, 2001 (the effective date of |
14 | | Public Act 92-227), computers and communications equipment |
15 | | utilized for any hospital purpose and equipment used in the |
16 | | diagnosis, analysis, or treatment of hospital patients |
17 | | purchased by a lessor who leases the equipment, under a lease |
18 | | of one year or longer executed or in effect at the time the |
19 | | lessor would otherwise be subject to the tax imposed by this |
20 | | Act, to a hospital that has been issued an active tax exemption |
21 | | identification number by the Department under Section 1g of |
22 | | the Retailers' Occupation Tax Act. If the equipment is leased |
23 | | in a manner that does not qualify for this exemption or is used |
24 | | in any other nonexempt manner, the lessor shall be liable for |
25 | | the tax imposed under this Act or the Use Tax Act, as the case |
26 | | may be, based on the fair market value of the property at the |
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1 | | time the nonqualifying use occurs. No lessor shall collect or |
2 | | attempt to collect an amount (however designated) that |
3 | | purports to reimburse that lessor for the tax imposed by this |
4 | | Act or the Use Tax Act, as the case may be, if the tax has not |
5 | | been paid by the lessor. If a lessor improperly collects any |
6 | | such amount from the lessee, the lessee shall have a legal |
7 | | right to claim a refund of that amount from the lessor. If, |
8 | | however, that amount is not refunded to the lessee for any |
9 | | reason, the lessor is liable to pay that amount to the |
10 | | Department. This paragraph is exempt from the provisions of |
11 | | Section 3-75. |
12 | | (25) Beginning on August 2, 2001 (the effective date of |
13 | | Public Act 92-227), personal property purchased by a lessor |
14 | | who leases the property, under a lease of one year or longer |
15 | | executed or in effect at the time the lessor would otherwise be |
16 | | subject to the tax imposed by this Act, to a governmental body |
17 | | that has been issued an active tax exemption identification |
18 | | number by the Department under Section 1g of the Retailers' |
19 | | Occupation Tax Act. If the property is leased in a manner that |
20 | | does not qualify for this exemption or is used in any other |
21 | | nonexempt manner, the lessor shall be liable for the tax |
22 | | imposed under this Act or the Use Tax Act, as the case may be, |
23 | | based on the fair market value of the property at the time the |
24 | | nonqualifying use occurs. No lessor shall collect or attempt |
25 | | to collect an amount (however designated) that purports to |
26 | | reimburse that lessor for the tax imposed by this Act or the |
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1 | | Use Tax Act, as the case may be, if the tax has not been paid |
2 | | by the lessor. If a lessor improperly collects any such amount |
3 | | from the lessee, the lessee shall have a legal right to claim a |
4 | | refund of that amount from the lessor. If, however, that |
5 | | amount is not refunded to the lessee for any reason, the lessor |
6 | | is liable to pay that amount to the Department. This paragraph |
7 | | is exempt from the provisions of Section 3-75. |
8 | | (26) Beginning January 1, 2008, tangible personal property |
9 | | used in the construction or maintenance of a community water |
10 | | supply, as defined under Section 3.145 of the Environmental |
11 | | Protection Act, that is operated by a not-for-profit |
12 | | corporation that holds a valid water supply permit issued |
13 | | under Title IV of the Environmental Protection Act. This |
14 | | paragraph is exempt from the provisions of Section 3-75. |
15 | | (27) Beginning January 1, 2010 and continuing through |
16 | | December 31, 2029, materials, parts, equipment, components, |
17 | | and furnishings incorporated into or upon an aircraft as part |
18 | | of the modification, refurbishment, completion, replacement, |
19 | | repair, or maintenance of the aircraft. This exemption |
20 | | includes consumable supplies used in the modification, |
21 | | refurbishment, completion, replacement, repair, and |
22 | | maintenance of aircraft. However, until January 1, 2024, this |
23 | | exemption excludes any materials, parts, equipment, |
24 | | components, and consumable supplies used in the modification, |
25 | | replacement, repair, and maintenance of aircraft engines or |
26 | | power plants, whether such engines or power plants are |
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1 | | installed or uninstalled upon any such aircraft. "Consumable |
2 | | supplies" include, but are not limited to, adhesive, tape, |
3 | | sandpaper, general purpose lubricants, cleaning solution, |
4 | | latex gloves, and protective films. |
5 | | Beginning January 1, 2010 and continuing through December |
6 | | 31, 2023, this exemption applies only to the use of qualifying |
7 | | tangible personal property transferred incident to the |
8 | | modification, refurbishment, completion, replacement, repair, |
9 | | or maintenance of aircraft by persons who (i) hold an Air |
10 | | Agency Certificate and are empowered to operate an approved |
11 | | repair station by the Federal Aviation Administration, (ii) |
12 | | have a Class IV Rating, and (iii) conduct operations in |
13 | | accordance with Part 145 of the Federal Aviation Regulations. |
14 | | From January 1, 2024 through December 31, 2029, this exemption |
15 | | applies only to the use of qualifying tangible personal |
16 | | property by: (A) persons who modify, refurbish, complete, |
17 | | repair, replace, or maintain aircraft and who (i) hold an Air |
18 | | Agency Certificate and are empowered to operate an approved |
19 | | repair station by the Federal Aviation Administration, (ii) |
20 | | have a Class IV Rating, and (iii) conduct operations in |
21 | | accordance with Part 145 of the Federal Aviation Regulations; |
22 | | and (B) persons who engage in the modification, replacement, |
23 | | repair, and maintenance of aircraft engines or power plants |
24 | | without regard to whether or not those persons meet the |
25 | | qualifications of item (A). |
26 | | The exemption does not include aircraft operated by a |
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1 | | commercial air carrier providing scheduled passenger air |
2 | | service pursuant to authority issued under Part 121 or Part |
3 | | 129 of the Federal Aviation Regulations. The changes made to |
4 | | this paragraph (27) by Public Act 98-534 are declarative of |
5 | | existing law. It is the intent of the General Assembly that the |
6 | | exemption under this paragraph (27) applies continuously from |
7 | | January 1, 2010 through December 31, 2024; however, no claim |
8 | | for credit or refund is allowed for taxes paid as a result of |
9 | | the disallowance of this exemption on or after January 1, 2015 |
10 | | and prior to February 5, 2020 (the effective date of Public Act |
11 | | 101-629). |
12 | | (28) Tangible personal property purchased by a |
13 | | public-facilities corporation, as described in Section |
14 | | 11-65-10 of the Illinois Municipal Code, for purposes of |
15 | | constructing or furnishing a municipal convention hall, but |
16 | | only if the legal title to the municipal convention hall is |
17 | | transferred to the municipality without any further |
18 | | consideration by or on behalf of the municipality at the time |
19 | | of the completion of the municipal convention hall or upon the |
20 | | retirement or redemption of any bonds or other debt |
21 | | instruments issued by the public-facilities corporation in |
22 | | connection with the development of the municipal convention |
23 | | hall. This exemption includes existing public-facilities |
24 | | corporations as provided in Section 11-65-25 of the Illinois |
25 | | Municipal Code. This paragraph is exempt from the provisions |
26 | | of Section 3-75. |
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1 | | (29) Beginning January 1, 2017 and through December 31, |
2 | | 2026, menstrual pads, tampons, and menstrual cups. |
3 | | (30) Tangible personal property transferred to a purchaser |
4 | | who is exempt from the tax imposed by this Act by operation of |
5 | | federal law. This paragraph is exempt from the provisions of |
6 | | Section 3-75. |
7 | | (31) Qualified tangible personal property used in the |
8 | | construction or operation of a data center that has been |
9 | | granted a certificate of exemption by the Department of |
10 | | Commerce and Economic Opportunity, whether that tangible |
11 | | personal property is purchased by the owner, operator, or |
12 | | tenant of the data center or by a contractor or subcontractor |
13 | | of the owner, operator, or tenant. Data centers that would |
14 | | have qualified for a certificate of exemption prior to January |
15 | | 1, 2020 had Public Act 101-31 been in effect, may apply for and |
16 | | obtain an exemption for subsequent purchases of computer |
17 | | equipment or enabling software purchased or leased to upgrade, |
18 | | supplement, or replace computer equipment or enabling software |
19 | | purchased or leased in the original investment that would have |
20 | | qualified. |
21 | | The Department of Commerce and Economic Opportunity shall |
22 | | grant a certificate of exemption under this item (31) to |
23 | | qualified data centers as defined by Section 605-1025 of the |
24 | | Department of Commerce and Economic Opportunity Law of the |
25 | | Civil Administrative Code of Illinois. |
26 | | For the purposes of this item (31): |
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1 | | "Data center" means a building or a series of |
2 | | buildings rehabilitated or constructed to house working |
3 | | servers in one physical location or multiple sites within |
4 | | the State of Illinois. |
5 | | "Qualified tangible personal property" means: |
6 | | electrical systems and equipment; climate control and |
7 | | chilling equipment and systems; mechanical systems and |
8 | | equipment; monitoring and secure systems; emergency |
9 | | generators; hardware; computers; servers; data storage |
10 | | devices; network connectivity equipment; racks; cabinets; |
11 | | telecommunications cabling infrastructure; raised floor |
12 | | systems; peripheral components or systems; software; |
13 | | mechanical, electrical, or plumbing systems; battery |
14 | | systems; cooling systems and towers; temperature control |
15 | | systems; other cabling; and other data center |
16 | | infrastructure equipment and systems necessary to operate |
17 | | qualified tangible personal property, including fixtures; |
18 | | and component parts of any of the foregoing, including |
19 | | installation, maintenance, repair, refurbishment, and |
20 | | replacement of qualified tangible personal property to |
21 | | generate, transform, transmit, distribute, or manage |
22 | | electricity necessary to operate qualified tangible |
23 | | personal property; and all other tangible personal |
24 | | property that is essential to the operations of a computer |
25 | | data center. The term "qualified tangible personal |
26 | | property" also includes building materials physically |
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1 | | incorporated into in to the qualifying data center. To |
2 | | document the exemption allowed under this Section, the |
3 | | retailer must obtain from the purchaser a copy of the |
4 | | certificate of eligibility issued by the Department of |
5 | | Commerce and Economic Opportunity. |
6 | | This item (31) is exempt from the provisions of Section |
7 | | 3-75. |
8 | | (32) Beginning July 1, 2022, breast pumps, breast pump |
9 | | collection and storage supplies, and breast pump kits. This |
10 | | item (32) is exempt from the provisions of Section 3-75. As |
11 | | used in this item (32): |
12 | | "Breast pump" means an electrically controlled or |
13 | | manually controlled pump device designed or marketed to be |
14 | | used to express milk from a human breast during lactation, |
15 | | including the pump device and any battery, AC adapter, or |
16 | | other power supply unit that is used to power the pump |
17 | | device and is packaged and sold with the pump device at the |
18 | | time of sale. |
19 | | "Breast pump collection and storage supplies" means |
20 | | items of tangible personal property designed or marketed |
21 | | to be used in conjunction with a breast pump to collect |
22 | | milk expressed from a human breast and to store collected |
23 | | milk until it is ready for consumption. |
24 | | "Breast pump collection and storage supplies" |
25 | | includes, but is not limited to: breast shields and breast |
26 | | shield connectors; breast pump tubes and tubing adapters; |
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1 | | breast pump valves and membranes; backflow protectors and |
2 | | backflow protector adaptors; bottles and bottle caps |
3 | | specific to the operation of the breast pump; and breast |
4 | | milk storage bags. |
5 | | "Breast pump collection and storage supplies" does not |
6 | | include: (1) bottles and bottle caps not specific to the |
7 | | operation of the breast pump; (2) breast pump travel bags |
8 | | and other similar carrying accessories, including ice |
9 | | packs, labels, and other similar products; (3) breast pump |
10 | | cleaning supplies; (4) nursing bras, bra pads, breast |
11 | | shells, and other similar products; and (5) creams, |
12 | | ointments, and other similar products that relieve |
13 | | breastfeeding-related symptoms or conditions of the |
14 | | breasts or nipples, unless sold as part of a breast pump |
15 | | kit that is pre-packaged by the breast pump manufacturer |
16 | | or distributor. |
17 | | "Breast pump kit" means a kit that: (1) contains no |
18 | | more than a breast pump, breast pump collection and |
19 | | storage supplies, a rechargeable battery for operating the |
20 | | breast pump, a breastmilk cooler, bottle stands, ice |
21 | | packs, and a breast pump carrying case; and (2) is |
22 | | pre-packaged as a breast pump kit by the breast pump |
23 | | manufacturer or distributor. |
24 | | (33) Tangible personal property sold by or on behalf of |
25 | | the State Treasurer pursuant to the Revised Uniform Unclaimed |
26 | | Property Act. This item (33) is exempt from the provisions of |
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1 | | Section 3-75. |
2 | | (34) Beginning on January 1, 2024, tangible personal |
3 | | property purchased by an active duty member of the armed |
4 | | forces of the United States who presents valid military |
5 | | identification and purchases the property using a form of |
6 | | payment where the federal government is the payor. The member |
7 | | of the armed forces must complete, at the point of sale, a form |
8 | | prescribed by the Department of Revenue documenting that the |
9 | | transaction is eligible for the exemption under this |
10 | | paragraph. Retailers must keep the form as documentation of |
11 | | the exemption in their records for a period of not less than 6 |
12 | | years. "Armed forces of the United States" means the United |
13 | | States Army, Navy, Air Force, Marine Corps, or Coast Guard. |
14 | | This paragraph is exempt from the provisions of Section 3-75. |
15 | | (35) Tangible personal property to be used or consumed |
16 | | within a quantum computing campus enterprise zone designated |
17 | | by the Department of Commerce and Economic Opportunity under |
18 | | Section 605-1115 of the Department of Commerce and Economic |
19 | | Opportunity Law of the Civil Administrative Code of Illinois. |
20 | | This paragraph is exempt from the provisions of Section 3-75. |
21 | | (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, |
22 | | Section 70-10, eff. 4-19-22; 102-700, Article 75, Section |
23 | | 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5, |
24 | | Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10, |
25 | | eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; |
26 | | revised 12-12-23.) |
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1 | | Section 45. The Service Occupation Tax Act is amended by |
2 | | changing Section 3-5 as follows: |
3 | | (35 ILCS 115/3-5) |
4 | | Sec. 3-5. Exemptions. The following tangible personal |
5 | | property is exempt from the tax imposed by this Act: |
6 | | (1) Personal property sold by a corporation, society, |
7 | | association, foundation, institution, or organization, other |
8 | | than a limited liability company, that is organized and |
9 | | operated as a not-for-profit service enterprise for the |
10 | | benefit of persons 65 years of age or older if the personal |
11 | | property was not purchased by the enterprise for the purpose |
12 | | of resale by the enterprise. |
13 | | (2) Personal property purchased by a not-for-profit |
14 | | Illinois county fair association for use in conducting, |
15 | | operating, or promoting the county fair. |
16 | | (3) Personal property purchased by any not-for-profit arts |
17 | | or cultural organization that establishes, by proof required |
18 | | by the Department by rule, that it has received an exemption |
19 | | under Section 501(c)(3) of the Internal Revenue Code and that |
20 | | is organized and operated primarily for the presentation or |
21 | | support of arts or cultural programming, activities, or |
22 | | services. These organizations include, but are not limited to, |
23 | | music and dramatic arts organizations such as symphony |
24 | | orchestras and theatrical groups, arts and cultural service |
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1 | | organizations, local arts councils, visual arts organizations, |
2 | | and media arts organizations. On and after July 1, 2001 (the |
3 | | effective date of Public Act 92-35), however, an entity |
4 | | otherwise eligible for this exemption shall not make tax-free |
5 | | purchases unless it has an active identification number issued |
6 | | by the Department. |
7 | | (4) Legal tender, currency, medallions, or gold or silver |
8 | | coinage issued by the State of Illinois, the government of the |
9 | | United States of America, or the government of any foreign |
10 | | country, and bullion. |
11 | | (5) Until July 1, 2003 and beginning again on September 1, |
12 | | 2004 through August 30, 2014, graphic arts machinery and |
13 | | equipment, including repair and replacement parts, both new |
14 | | and used, and including that manufactured on special order or |
15 | | purchased for lease, certified by the purchaser to be used |
16 | | primarily for graphic arts production. Equipment includes |
17 | | chemicals or chemicals acting as catalysts but only if the |
18 | | chemicals or chemicals acting as catalysts effect a direct and |
19 | | immediate change upon a graphic arts product. Beginning on |
20 | | July 1, 2017, graphic arts machinery and equipment is included |
21 | | in the manufacturing and assembling machinery and equipment |
22 | | exemption under Section 2 of this Act. |
23 | | (6) Personal property sold by a teacher-sponsored student |
24 | | organization affiliated with an elementary or secondary school |
25 | | located in Illinois. |
26 | | (7) Farm machinery and equipment, both new and used, |
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1 | | including that manufactured on special order, certified by the |
2 | | purchaser to be used primarily for production agriculture or |
3 | | State or federal agricultural programs, including individual |
4 | | replacement parts for the machinery and equipment, including |
5 | | machinery and equipment purchased for lease, and including |
6 | | implements of husbandry defined in Section 1-130 of the |
7 | | Illinois Vehicle Code, farm machinery and agricultural |
8 | | chemical and fertilizer spreaders, and nurse wagons required |
9 | | to be registered under Section 3-809 of the Illinois Vehicle |
10 | | Code, but excluding other motor vehicles required to be |
11 | | registered under the Illinois Vehicle Code. Horticultural |
12 | | polyhouses or hoop houses used for propagating, growing, or |
13 | | overwintering plants shall be considered farm machinery and |
14 | | equipment under this item (7). Agricultural chemical tender |
15 | | tanks and dry boxes shall include units sold separately from a |
16 | | motor vehicle required to be licensed and units sold mounted |
17 | | on a motor vehicle required to be licensed if the selling price |
18 | | of the tender is separately stated. |
19 | | Farm machinery and equipment shall include precision |
20 | | farming equipment that is installed or purchased to be |
21 | | installed on farm machinery and equipment , including, but not |
22 | | limited to, tractors, harvesters, sprayers, planters, seeders, |
23 | | or spreaders. Precision farming equipment includes, but is not |
24 | | limited to, soil testing sensors, computers, monitors, |
25 | | software, global positioning and mapping systems, and other |
26 | | such equipment. |
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1 | | Farm machinery and equipment also includes computers, |
2 | | sensors, software, and related equipment used primarily in the |
3 | | computer-assisted operation of production agriculture |
4 | | facilities, equipment, and activities such as, but not limited |
5 | | to, the collection, monitoring, and correlation of animal and |
6 | | crop data for the purpose of formulating animal diets and |
7 | | agricultural chemicals. |
8 | | Beginning on January 1, 2024, farm machinery and equipment |
9 | | also includes electrical power generation equipment used |
10 | | primarily for production agriculture. |
11 | | This item (7) is exempt from the provisions of Section |
12 | | 3-55. |
13 | | (8) Until June 30, 2013, fuel and petroleum products sold |
14 | | to or used by an air common carrier, certified by the carrier |
15 | | to be used for consumption, shipment, or storage in the |
16 | | conduct of its business as an air common carrier, for a flight |
17 | | destined for or returning from a location or locations outside |
18 | | the United States without regard to previous or subsequent |
19 | | domestic stopovers. |
20 | | Beginning July 1, 2013, fuel and petroleum products sold |
21 | | to or used by an air carrier, certified by the carrier to be |
22 | | used for consumption, shipment, or storage in the conduct of |
23 | | its business as an air common carrier, for a flight that (i) is |
24 | | engaged in foreign trade or is engaged in trade between the |
25 | | United States and any of its possessions and (ii) transports |
26 | | at least one individual or package for hire from the city of |
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1 | | origination to the city of final destination on the same |
2 | | aircraft, without regard to a change in the flight number of |
3 | | that aircraft. |
4 | | (9) Proceeds of mandatory service charges separately |
5 | | stated on customers' bills for the purchase and consumption of |
6 | | food and beverages, to the extent that the proceeds of the |
7 | | service charge are in fact turned over as tips or as a |
8 | | substitute for tips to the employees who participate directly |
9 | | in preparing, serving, hosting or cleaning up the food or |
10 | | beverage function with respect to which the service charge is |
11 | | imposed. |
12 | | (10) Until July 1, 2003, oil field exploration, drilling, |
13 | | and production equipment, including (i) rigs and parts of |
14 | | rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) |
15 | | pipe and tubular goods, including casing and drill strings, |
16 | | (iii) pumps and pump-jack units, (iv) storage tanks and flow |
17 | | lines, (v) any individual replacement part for oil field |
18 | | exploration, drilling, and production equipment, and (vi) |
19 | | machinery and equipment purchased for lease; but excluding |
20 | | motor vehicles required to be registered under the Illinois |
21 | | Vehicle Code. |
22 | | (11) Photoprocessing machinery and equipment, including |
23 | | repair and replacement parts, both new and used, including |
24 | | that manufactured on special order, certified by the purchaser |
25 | | to be used primarily for photoprocessing, and including |
26 | | photoprocessing machinery and equipment purchased for lease. |
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1 | | (12) Until July 1, 2028, coal and aggregate exploration, |
2 | | mining, off-highway hauling, processing, maintenance, and |
3 | | reclamation equipment, including replacement parts and |
4 | | equipment, and including equipment purchased for lease, but |
5 | | excluding motor vehicles required to be registered under the |
6 | | Illinois Vehicle Code. The changes made to this Section by |
7 | | Public Act 97-767 apply on and after July 1, 2003, but no claim |
8 | | for credit or refund is allowed on or after August 16, 2013 |
9 | | (the effective date of Public Act 98-456) for such taxes paid |
10 | | during the period beginning July 1, 2003 and ending on August |
11 | | 16, 2013 (the effective date of Public Act 98-456). |
12 | | (13) Beginning January 1, 1992 and through June 30, 2016, |
13 | | food for human consumption that is to be consumed off the |
14 | | premises where it is sold (other than alcoholic beverages, |
15 | | soft drinks and food that has been prepared for immediate |
16 | | consumption) and prescription and non-prescription medicines, |
17 | | drugs, medical appliances, and insulin, urine testing |
18 | | materials, syringes, and needles used by diabetics, for human |
19 | | use, when purchased for use by a person receiving medical |
20 | | assistance under Article V of the Illinois Public Aid Code who |
21 | | resides in a licensed long-term care facility, as defined in |
22 | | the Nursing Home Care Act, or in a licensed facility as defined |
23 | | in the ID/DD Community Care Act, the MC/DD Act, or the |
24 | | Specialized Mental Health Rehabilitation Act of 2013. |
25 | | (14) Semen used for artificial insemination of livestock |
26 | | for direct agricultural production. |
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1 | | (15) Horses, or interests in horses, registered with and |
2 | | meeting the requirements of any of the Arabian Horse Club |
3 | | Registry of America, Appaloosa Horse Club, American Quarter |
4 | | Horse Association, United States Trotting Association, or |
5 | | Jockey Club, as appropriate, used for purposes of breeding or |
6 | | racing for prizes. This item (15) is exempt from the |
7 | | provisions of Section 3-55, and the exemption provided for |
8 | | under this item (15) applies for all periods beginning May 30, |
9 | | 1995, but no claim for credit or refund is allowed on or after |
10 | | January 1, 2008 (the effective date of Public Act 95-88) for |
11 | | such taxes paid during the period beginning May 30, 2000 and |
12 | | ending on January 1, 2008 (the effective date of Public Act |
13 | | 95-88). |
14 | | (16) Computers and communications equipment utilized for |
15 | | any hospital purpose and equipment used in the diagnosis, |
16 | | analysis, or treatment of hospital patients sold to a lessor |
17 | | who leases the equipment, under a lease of one year or longer |
18 | | executed or in effect at the time of the purchase, to a |
19 | | hospital that has been issued an active tax exemption |
20 | | identification number by the Department under Section 1g of |
21 | | the Retailers' Occupation Tax Act. |
22 | | (17) Personal property sold to a lessor who leases the |
23 | | property, under a lease of one year or longer executed or in |
24 | | effect at the time of the purchase, to a governmental body that |
25 | | has been issued an active tax exemption identification number |
26 | | by the Department under Section 1g of the Retailers' |
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1 | | Occupation Tax Act. |
2 | | (18) Beginning with taxable years ending on or after |
3 | | December 31, 1995 and ending with taxable years ending on or |
4 | | before December 31, 2004, personal property that is donated |
5 | | for disaster relief to be used in a State or federally declared |
6 | | disaster area in Illinois or bordering Illinois by a |
7 | | manufacturer or retailer that is registered in this State to a |
8 | | corporation, society, association, foundation, or institution |
9 | | that has been issued a sales tax exemption identification |
10 | | number by the Department that assists victims of the disaster |
11 | | who reside within the declared disaster area. |
12 | | (19) Beginning with taxable years ending on or after |
13 | | December 31, 1995 and ending with taxable years ending on or |
14 | | before December 31, 2004, personal property that is used in |
15 | | the performance of infrastructure repairs in this State, |
16 | | including , but not limited to , municipal roads and streets, |
17 | | access roads, bridges, sidewalks, waste disposal systems, |
18 | | water and sewer line extensions, water distribution and |
19 | | purification facilities, storm water drainage and retention |
20 | | facilities, and sewage treatment facilities, resulting from a |
21 | | State or federally declared disaster in Illinois or bordering |
22 | | Illinois when such repairs are initiated on facilities located |
23 | | in the declared disaster area within 6 months after the |
24 | | disaster. |
25 | | (20) Beginning July 1, 1999, game or game birds sold at a |
26 | | "game breeding and hunting preserve area" as that term is used |
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1 | | in the Wildlife Code. This paragraph is exempt from the |
2 | | provisions of Section 3-55. |
3 | | (21) A motor vehicle, as that term is defined in Section |
4 | | 1-146 of the Illinois Vehicle Code, that is donated to a |
5 | | corporation, limited liability company, society, association, |
6 | | foundation, or institution that is determined by the |
7 | | Department to be organized and operated exclusively for |
8 | | educational purposes. For purposes of this exemption, "a |
9 | | corporation, limited liability company, society, association, |
10 | | foundation, or institution organized and operated exclusively |
11 | | for educational purposes" means all tax-supported public |
12 | | schools, private schools that offer systematic instruction in |
13 | | useful branches of learning by methods common to public |
14 | | schools and that compare favorably in their scope and |
15 | | intensity with the course of study presented in tax-supported |
16 | | schools, and vocational or technical schools or institutes |
17 | | organized and operated exclusively to provide a course of |
18 | | study of not less than 6 weeks duration and designed to prepare |
19 | | individuals to follow a trade or to pursue a manual, |
20 | | technical, mechanical, industrial, business, or commercial |
21 | | occupation. |
22 | | (22) Beginning January 1, 2000, personal property, |
23 | | including food, purchased through fundraising events for the |
24 | | benefit of a public or private elementary or secondary school, |
25 | | a group of those schools, or one or more school districts if |
26 | | the events are sponsored by an entity recognized by the school |
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1 | | district that consists primarily of volunteers and includes |
2 | | parents and teachers of the school children. This paragraph |
3 | | does not apply to fundraising events (i) for the benefit of |
4 | | private home instruction or (ii) for which the fundraising |
5 | | entity purchases the personal property sold at the events from |
6 | | another individual or entity that sold the property for the |
7 | | purpose of resale by the fundraising entity and that profits |
8 | | from the sale to the fundraising entity. This paragraph is |
9 | | exempt from the provisions of Section 3-55. |
10 | | (23) Beginning January 1, 2000 and through December 31, |
11 | | 2001, new or used automatic vending machines that prepare and |
12 | | serve hot food and beverages, including coffee, soup, and |
13 | | other items, and replacement parts for these machines. |
14 | | Beginning January 1, 2002 and through June 30, 2003, machines |
15 | | and parts for machines used in commercial, coin-operated |
16 | | amusement and vending business if a use or occupation tax is |
17 | | paid on the gross receipts derived from the use of the |
18 | | commercial, coin-operated amusement and vending machines. This |
19 | | paragraph is exempt from the provisions of Section 3-55. |
20 | | (24) Beginning on August 2, 2001 (the effective date of |
21 | | Public Act 92-227), computers and communications equipment |
22 | | utilized for any hospital purpose and equipment used in the |
23 | | diagnosis, analysis, or treatment of hospital patients sold to |
24 | | a lessor who leases the equipment, under a lease of one year or |
25 | | longer executed or in effect at the time of the purchase, to a |
26 | | hospital that has been issued an active tax exemption |
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1 | | identification number by the Department under Section 1g of |
2 | | the Retailers' Occupation Tax Act. This paragraph is exempt |
3 | | from the provisions of Section 3-55. |
4 | | (25) Beginning on August 2, 2001 (the effective date of |
5 | | Public Act 92-227), personal property sold to a lessor who |
6 | | leases the property, under a lease of one year or longer |
7 | | executed or in effect at the time of the purchase, to a |
8 | | governmental body that has been issued an active tax exemption |
9 | | identification number by the Department under Section 1g of |
10 | | the Retailers' Occupation Tax Act. This paragraph is exempt |
11 | | from the provisions of Section 3-55. |
12 | | (26) Beginning on January 1, 2002 and through June 30, |
13 | | 2016, tangible personal property purchased from an Illinois |
14 | | retailer by a taxpayer engaged in centralized purchasing |
15 | | activities in Illinois who will, upon receipt of the property |
16 | | in Illinois, temporarily store the property in Illinois (i) |
17 | | for the purpose of subsequently transporting it outside this |
18 | | State for use or consumption thereafter solely outside this |
19 | | State or (ii) for the purpose of being processed, fabricated, |
20 | | or manufactured into, attached to, or incorporated into other |
21 | | tangible personal property to be transported outside this |
22 | | State and thereafter used or consumed solely outside this |
23 | | State. The Director of Revenue shall, pursuant to rules |
24 | | adopted in accordance with the Illinois Administrative |
25 | | Procedure Act, issue a permit to any taxpayer in good standing |
26 | | with the Department who is eligible for the exemption under |
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1 | | this paragraph (26). The permit issued under this paragraph |
2 | | (26) shall authorize the holder, to the extent and in the |
3 | | manner specified in the rules adopted under this Act, to |
4 | | purchase tangible personal property from a retailer exempt |
5 | | from the taxes imposed by this Act. Taxpayers shall maintain |
6 | | all necessary books and records to substantiate the use and |
7 | | consumption of all such tangible personal property outside of |
8 | | the State of Illinois. |
9 | | (27) Beginning January 1, 2008, tangible personal property |
10 | | used in the construction or maintenance of a community water |
11 | | supply, as defined under Section 3.145 of the Environmental |
12 | | Protection Act, that is operated by a not-for-profit |
13 | | corporation that holds a valid water supply permit issued |
14 | | under Title IV of the Environmental Protection Act. This |
15 | | paragraph is exempt from the provisions of Section 3-55. |
16 | | (28) Tangible personal property sold to a |
17 | | public-facilities corporation, as described in Section |
18 | | 11-65-10 of the Illinois Municipal Code, for purposes of |
19 | | constructing or furnishing a municipal convention hall, but |
20 | | only if the legal title to the municipal convention hall is |
21 | | transferred to the municipality without any further |
22 | | consideration by or on behalf of the municipality at the time |
23 | | of the completion of the municipal convention hall or upon the |
24 | | retirement or redemption of any bonds or other debt |
25 | | instruments issued by the public-facilities corporation in |
26 | | connection with the development of the municipal convention |
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1 | | hall. This exemption includes existing public-facilities |
2 | | corporations as provided in Section 11-65-25 of the Illinois |
3 | | Municipal Code. This paragraph is exempt from the provisions |
4 | | of Section 3-55. |
5 | | (29) Beginning January 1, 2010 and continuing through |
6 | | December 31, 2029, materials, parts, equipment, components, |
7 | | and furnishings incorporated into or upon an aircraft as part |
8 | | of the modification, refurbishment, completion, replacement, |
9 | | repair, or maintenance of the aircraft. This exemption |
10 | | includes consumable supplies used in the modification, |
11 | | refurbishment, completion, replacement, repair, and |
12 | | maintenance of aircraft. However, until January 1, 2024, this |
13 | | exemption excludes any materials, parts, equipment, |
14 | | components, and consumable supplies used in the modification, |
15 | | replacement, repair, and maintenance of aircraft engines or |
16 | | power plants, whether such engines or power plants are |
17 | | installed or uninstalled upon any such aircraft. "Consumable |
18 | | supplies" include, but are not limited to, adhesive, tape, |
19 | | sandpaper, general purpose lubricants, cleaning solution, |
20 | | latex gloves, and protective films. |
21 | | Beginning January 1, 2010 and continuing through December |
22 | | 31, 2023, this exemption applies only to the transfer of |
23 | | qualifying tangible personal property incident to the |
24 | | modification, refurbishment, completion, replacement, repair, |
25 | | or maintenance of an aircraft by persons who (i) hold an Air |
26 | | Agency Certificate and are empowered to operate an approved |
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1 | | repair station by the Federal Aviation Administration, (ii) |
2 | | have a Class IV Rating, and (iii) conduct operations in |
3 | | accordance with Part 145 of the Federal Aviation Regulations. |
4 | | The exemption does not include aircraft operated by a |
5 | | commercial air carrier providing scheduled passenger air |
6 | | service pursuant to authority issued under Part 121 or Part |
7 | | 129 of the Federal Aviation Regulations. From January 1, 2024 |
8 | | through December 31, 2029, this exemption applies only to the |
9 | | use of qualifying tangible personal property by: (A) persons |
10 | | who modify, refurbish, complete, repair, replace, or maintain |
11 | | aircraft and who (i) hold an Air Agency Certificate and are |
12 | | empowered to operate an approved repair station by the Federal |
13 | | Aviation Administration, (ii) have a Class IV Rating, and |
14 | | (iii) conduct operations in accordance with Part 145 of the |
15 | | Federal Aviation Regulations; and (B) persons who engage in |
16 | | the modification, replacement, repair, and maintenance of |
17 | | aircraft engines or power plants without regard to whether or |
18 | | not those persons meet the qualifications of item (A). |
19 | | The changes made to this paragraph (29) by Public Act |
20 | | 98-534 are declarative of existing law. It is the intent of the |
21 | | General Assembly that the exemption under this paragraph (29) |
22 | | applies continuously from January 1, 2010 through December 31, |
23 | | 2024; however, no claim for credit or refund is allowed for |
24 | | taxes paid as a result of the disallowance of this exemption on |
25 | | or after January 1, 2015 and prior to February 5, 2020 (the |
26 | | effective date of Public Act 101-629). |
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1 | | (30) Beginning January 1, 2017 and through December 31, |
2 | | 2026, menstrual pads, tampons, and menstrual cups. |
3 | | (31) Tangible personal property transferred to a purchaser |
4 | | who is exempt from tax by operation of federal law. This |
5 | | paragraph is exempt from the provisions of Section 3-55. |
6 | | (32) Qualified tangible personal property used in the |
7 | | construction or operation of a data center that has been |
8 | | granted a certificate of exemption by the Department of |
9 | | Commerce and Economic Opportunity, whether that tangible |
10 | | personal property is purchased by the owner, operator, or |
11 | | tenant of the data center or by a contractor or subcontractor |
12 | | of the owner, operator, or tenant. Data centers that would |
13 | | have qualified for a certificate of exemption prior to January |
14 | | 1, 2020 had Public Act 101-31 been in effect, may apply for and |
15 | | obtain an exemption for subsequent purchases of computer |
16 | | equipment or enabling software purchased or leased to upgrade, |
17 | | supplement, or replace computer equipment or enabling software |
18 | | purchased or leased in the original investment that would have |
19 | | qualified. |
20 | | The Department of Commerce and Economic Opportunity shall |
21 | | grant a certificate of exemption under this item (32) to |
22 | | qualified data centers as defined by Section 605-1025 of the |
23 | | Department of Commerce and Economic Opportunity Law of the |
24 | | Civil Administrative Code of Illinois. |
25 | | For the purposes of this item (32): |
26 | | "Data center" means a building or a series of |
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1 | | buildings rehabilitated or constructed to house working |
2 | | servers in one physical location or multiple sites within |
3 | | the State of Illinois. |
4 | | "Qualified tangible personal property" means: |
5 | | electrical systems and equipment; climate control and |
6 | | chilling equipment and systems; mechanical systems and |
7 | | equipment; monitoring and secure systems; emergency |
8 | | generators; hardware; computers; servers; data storage |
9 | | devices; network connectivity equipment; racks; cabinets; |
10 | | telecommunications cabling infrastructure; raised floor |
11 | | systems; peripheral components or systems; software; |
12 | | mechanical, electrical, or plumbing systems; battery |
13 | | systems; cooling systems and towers; temperature control |
14 | | systems; other cabling; and other data center |
15 | | infrastructure equipment and systems necessary to operate |
16 | | qualified tangible personal property, including fixtures; |
17 | | and component parts of any of the foregoing, including |
18 | | installation, maintenance, repair, refurbishment, and |
19 | | replacement of qualified tangible personal property to |
20 | | generate, transform, transmit, distribute, or manage |
21 | | electricity necessary to operate qualified tangible |
22 | | personal property; and all other tangible personal |
23 | | property that is essential to the operations of a computer |
24 | | data center. The term "qualified tangible personal |
25 | | property" also includes building materials physically |
26 | | incorporated into in to the qualifying data center. To |
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1 | | document the exemption allowed under this Section, the |
2 | | retailer must obtain from the purchaser a copy of the |
3 | | certificate of eligibility issued by the Department of |
4 | | Commerce and Economic Opportunity. |
5 | | This item (32) is exempt from the provisions of Section |
6 | | 3-55. |
7 | | (33) Beginning July 1, 2022, breast pumps, breast pump |
8 | | collection and storage supplies, and breast pump kits. This |
9 | | item (33) is exempt from the provisions of Section 3-55. As |
10 | | used in this item (33): |
11 | | "Breast pump" means an electrically controlled or |
12 | | manually controlled pump device designed or marketed to be |
13 | | used to express milk from a human breast during lactation, |
14 | | including the pump device and any battery, AC adapter, or |
15 | | other power supply unit that is used to power the pump |
16 | | device and is packaged and sold with the pump device at the |
17 | | time of sale. |
18 | | "Breast pump collection and storage supplies" means |
19 | | items of tangible personal property designed or marketed |
20 | | to be used in conjunction with a breast pump to collect |
21 | | milk expressed from a human breast and to store collected |
22 | | milk until it is ready for consumption. |
23 | | "Breast pump collection and storage supplies" |
24 | | includes, but is not limited to: breast shields and breast |
25 | | shield connectors; breast pump tubes and tubing adapters; |
26 | | breast pump valves and membranes; backflow protectors and |
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1 | | backflow protector adaptors; bottles and bottle caps |
2 | | specific to the operation of the breast pump; and breast |
3 | | milk storage bags. |
4 | | "Breast pump collection and storage supplies" does not |
5 | | include: (1) bottles and bottle caps not specific to the |
6 | | operation of the breast pump; (2) breast pump travel bags |
7 | | and other similar carrying accessories, including ice |
8 | | packs, labels, and other similar products; (3) breast pump |
9 | | cleaning supplies; (4) nursing bras, bra pads, breast |
10 | | shells, and other similar products; and (5) creams, |
11 | | ointments, and other similar products that relieve |
12 | | breastfeeding-related symptoms or conditions of the |
13 | | breasts or nipples, unless sold as part of a breast pump |
14 | | kit that is pre-packaged by the breast pump manufacturer |
15 | | or distributor. |
16 | | "Breast pump kit" means a kit that: (1) contains no |
17 | | more than a breast pump, breast pump collection and |
18 | | storage supplies, a rechargeable battery for operating the |
19 | | breast pump, a breastmilk cooler, bottle stands, ice |
20 | | packs, and a breast pump carrying case; and (2) is |
21 | | pre-packaged as a breast pump kit by the breast pump |
22 | | manufacturer or distributor. |
23 | | (34) Tangible personal property sold by or on behalf of |
24 | | the State Treasurer pursuant to the Revised Uniform Unclaimed |
25 | | Property Act. This item (34) is exempt from the provisions of |
26 | | Section 3-55. |
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1 | | (35) Beginning on January 1, 2024, tangible personal |
2 | | property purchased by an active duty member of the armed |
3 | | forces of the United States who presents valid military |
4 | | identification and purchases the property using a form of |
5 | | payment where the federal government is the payor. The member |
6 | | of the armed forces must complete, at the point of sale, a form |
7 | | prescribed by the Department of Revenue documenting that the |
8 | | transaction is eligible for the exemption under this |
9 | | paragraph. Retailers must keep the form as documentation of |
10 | | the exemption in their records for a period of not less than 6 |
11 | | years. "Armed forces of the United States" means the United |
12 | | States Army, Navy, Air Force, Marine Corps, or Coast Guard. |
13 | | This paragraph is exempt from the provisions of Section 3-55. |
14 | | (36) Tangible personal property to be used or consumed |
15 | | within a quantum computing campus enterprise zone designated |
16 | | by the Department of Commerce and Economic Opportunity under |
17 | | Section 605-1115 of the Department of Commerce and Economic |
18 | | Opportunity Law of the Civil Administrative Code of Illinois. |
19 | | This paragraph is exempt from the provisions of Section 3-55. |
20 | | (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, |
21 | | Section 70-15, eff. 4-19-22; 102-700, Article 75, Section |
22 | | 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5, |
23 | | Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15, |
24 | | eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; |
25 | | revised 12-12-23.) |
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1 | | Section 50. The Retailers' Occupation Tax Act is amended |
2 | | by changing Section 2-5 as follows: |
3 | | (35 ILCS 120/2-5) |
4 | | Sec. 2-5. Exemptions. Gross receipts from proceeds from |
5 | | the sale of the following tangible personal property are |
6 | | exempt from the tax imposed by this Act: |
7 | | (1) Farm chemicals. |
8 | | (2) Farm machinery and equipment, both new and used, |
9 | | including that manufactured on special order, certified by |
10 | | the purchaser to be used primarily for production |
11 | | agriculture or State or federal agricultural programs, |
12 | | including individual replacement parts for the machinery |
13 | | and equipment, including machinery and equipment purchased |
14 | | for lease, and including implements of husbandry defined |
15 | | in Section 1-130 of the Illinois Vehicle Code, farm |
16 | | machinery and agricultural chemical and fertilizer |
17 | | spreaders, and nurse wagons required to be registered |
18 | | under Section 3-809 of the Illinois Vehicle Code, but |
19 | | excluding other motor vehicles required to be registered |
20 | | under the Illinois Vehicle Code. Horticultural polyhouses |
21 | | or hoop houses used for propagating, growing, or |
22 | | overwintering plants shall be considered farm machinery |
23 | | and equipment under this item (2). Agricultural chemical |
24 | | tender tanks and dry boxes shall include units sold |
25 | | separately from a motor vehicle required to be licensed |
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1 | | and units sold mounted on a motor vehicle required to be |
2 | | licensed, if the selling price of the tender is separately |
3 | | stated. |
4 | | Farm machinery and equipment shall include precision |
5 | | farming equipment that is installed or purchased to be |
6 | | installed on farm machinery and equipment including, but |
7 | | not limited to, tractors, harvesters, sprayers, planters, |
8 | | seeders, or spreaders. Precision farming equipment |
9 | | includes, but is not limited to, soil testing sensors, |
10 | | computers, monitors, software, global positioning and |
11 | | mapping systems, and other such equipment. |
12 | | Farm machinery and equipment also includes computers, |
13 | | sensors, software, and related equipment used primarily in |
14 | | the computer-assisted operation of production agriculture |
15 | | facilities, equipment, and activities such as, but not |
16 | | limited to, the collection, monitoring, and correlation of |
17 | | animal and crop data for the purpose of formulating animal |
18 | | diets and agricultural chemicals. |
19 | | Beginning on January 1, 2024, farm machinery and |
20 | | equipment also includes electrical power generation |
21 | | equipment used primarily for production agriculture. |
22 | | This item (2) is exempt from the provisions of Section |
23 | | 2-70. |
24 | | (3) Until July 1, 2003, distillation machinery and |
25 | | equipment, sold as a unit or kit, assembled or installed |
26 | | by the retailer, certified by the user to be used only for |
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1 | | the production of ethyl alcohol that will be used for |
2 | | consumption as motor fuel or as a component of motor fuel |
3 | | for the personal use of the user, and not subject to sale |
4 | | or resale. |
5 | | (4) Until July 1, 2003 and beginning again September |
6 | | 1, 2004 through August 30, 2014, graphic arts machinery |
7 | | and equipment, including repair and replacement parts, |
8 | | both new and used, and including that manufactured on |
9 | | special order or purchased for lease, certified by the |
10 | | purchaser to be used primarily for graphic arts |
11 | | production. Equipment includes chemicals or chemicals |
12 | | acting as catalysts but only if the chemicals or chemicals |
13 | | acting as catalysts effect a direct and immediate change |
14 | | upon a graphic arts product. Beginning on July 1, 2017, |
15 | | graphic arts machinery and equipment is included in the |
16 | | manufacturing and assembling machinery and equipment |
17 | | exemption under paragraph (14). |
18 | | (5) A motor vehicle that is used for automobile |
19 | | renting, as defined in the Automobile Renting Occupation |
20 | | and Use Tax Act. This paragraph is exempt from the |
21 | | provisions of Section 2-70. |
22 | | (6) Personal property sold by a teacher-sponsored |
23 | | student organization affiliated with an elementary or |
24 | | secondary school located in Illinois. |
25 | | (7) Until July 1, 2003, proceeds of that portion of |
26 | | the selling price of a passenger car the sale of which is |
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1 | | subject to the Replacement Vehicle Tax. |
2 | | (8) Personal property sold to an Illinois county fair |
3 | | association for use in conducting, operating, or promoting |
4 | | the county fair. |
5 | | (9) Personal property sold to a not-for-profit arts or |
6 | | cultural organization that establishes, by proof required |
7 | | by the Department by rule, that it has received an |
8 | | exemption under Section 501(c)(3) of the Internal Revenue |
9 | | Code and that is organized and operated primarily for the |
10 | | presentation or support of arts or cultural programming, |
11 | | activities, or services. These organizations include, but |
12 | | are not limited to, music and dramatic arts organizations |
13 | | such as symphony orchestras and theatrical groups, arts |
14 | | and cultural service organizations, local arts councils, |
15 | | visual arts organizations, and media arts organizations. |
16 | | On and after July 1, 2001 (the effective date of Public Act |
17 | | 92-35), however, an entity otherwise eligible for this |
18 | | exemption shall not make tax-free purchases unless it has |
19 | | an active identification number issued by the Department. |
20 | | (10) Personal property sold by a corporation, society, |
21 | | association, foundation, institution, or organization, |
22 | | other than a limited liability company, that is organized |
23 | | and operated as a not-for-profit service enterprise for |
24 | | the benefit of persons 65 years of age or older if the |
25 | | personal property was not purchased by the enterprise for |
26 | | the purpose of resale by the enterprise. |
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1 | | (11) Except as otherwise provided in this Section, |
2 | | personal property sold to a governmental body, to a |
3 | | corporation, society, association, foundation, or |
4 | | institution organized and operated exclusively for |
5 | | charitable, religious, or educational purposes, or to a |
6 | | not-for-profit corporation, society, association, |
7 | | foundation, institution, or organization that has no |
8 | | compensated officers or employees and that is organized |
9 | | and operated primarily for the recreation of persons 55 |
10 | | years of age or older. A limited liability company may |
11 | | qualify for the exemption under this paragraph only if the |
12 | | limited liability company is organized and operated |
13 | | exclusively for educational purposes. On and after July 1, |
14 | | 1987, however, no entity otherwise eligible for this |
15 | | exemption shall make tax-free purchases unless it has an |
16 | | active identification number issued by the Department. |
17 | | (12) (Blank). |
18 | | (12-5) On and after July 1, 2003 and through June 30, |
19 | | 2004, motor vehicles of the second division with a gross |
20 | | vehicle weight in excess of 8,000 pounds that are subject |
21 | | to the commercial distribution fee imposed under Section |
22 | | 3-815.1 of the Illinois Vehicle Code. Beginning on July 1, |
23 | | 2004 and through June 30, 2005, the use in this State of |
24 | | motor vehicles of the second division: (i) with a gross |
25 | | vehicle weight rating in excess of 8,000 pounds; (ii) that |
26 | | are subject to the commercial distribution fee imposed |
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1 | | under Section 3-815.1 of the Illinois Vehicle Code; and |
2 | | (iii) that are primarily used for commercial purposes. |
3 | | Through June 30, 2005, this exemption applies to repair |
4 | | and replacement parts added after the initial purchase of |
5 | | such a motor vehicle if that motor vehicle is used in a |
6 | | manner that would qualify for the rolling stock exemption |
7 | | otherwise provided for in this Act. For purposes of this |
8 | | paragraph, "used for commercial purposes" means the |
9 | | transportation of persons or property in furtherance of |
10 | | any commercial or industrial enterprise whether for-hire |
11 | | or not. |
12 | | (13) Proceeds from sales to owners, lessors, or |
13 | | shippers of tangible personal property that is utilized by |
14 | | interstate carriers for hire for use as rolling stock |
15 | | moving in interstate commerce and equipment operated by a |
16 | | telecommunications provider, licensed as a common carrier |
17 | | by the Federal Communications Commission, which is |
18 | | permanently installed in or affixed to aircraft moving in |
19 | | interstate commerce. |
20 | | (14) Machinery and equipment that will be used by the |
21 | | purchaser, or a lessee of the purchaser, primarily in the |
22 | | process of manufacturing or assembling tangible personal |
23 | | property for wholesale or retail sale or lease, whether |
24 | | the sale or lease is made directly by the manufacturer or |
25 | | by some other person, whether the materials used in the |
26 | | process are owned by the manufacturer or some other |
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1 | | person, or whether the sale or lease is made apart from or |
2 | | as an incident to the seller's engaging in the service |
3 | | occupation of producing machines, tools, dies, jigs, |
4 | | patterns, gauges, or other similar items of no commercial |
5 | | value on special order for a particular purchaser. The |
6 | | exemption provided by this paragraph (14) does not include |
7 | | machinery and equipment used in (i) the generation of |
8 | | electricity for wholesale or retail sale; (ii) the |
9 | | generation or treatment of natural or artificial gas for |
10 | | wholesale or retail sale that is delivered to customers |
11 | | through pipes, pipelines, or mains; or (iii) the treatment |
12 | | of water for wholesale or retail sale that is delivered to |
13 | | customers through pipes, pipelines, or mains. The |
14 | | provisions of Public Act 98-583 are declaratory of |
15 | | existing law as to the meaning and scope of this |
16 | | exemption. Beginning on July 1, 2017, the exemption |
17 | | provided by this paragraph (14) includes, but is not |
18 | | limited to, graphic arts machinery and equipment, as |
19 | | defined in paragraph (4) of this Section. |
20 | | (15) Proceeds of mandatory service charges separately |
21 | | stated on customers' bills for purchase and consumption of |
22 | | food and beverages, to the extent that the proceeds of the |
23 | | service charge are in fact turned over as tips or as a |
24 | | substitute for tips to the employees who participate |
25 | | directly in preparing, serving, hosting or cleaning up the |
26 | | food or beverage function with respect to which the |
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1 | | service charge is imposed. |
2 | | (16) Tangible personal property sold to a purchaser if |
3 | | the purchaser is exempt from use tax by operation of |
4 | | federal law. This paragraph is exempt from the provisions |
5 | | of Section 2-70. |
6 | | (17) Tangible personal property sold to a common |
7 | | carrier by rail or motor that receives the physical |
8 | | possession of the property in Illinois and that transports |
9 | | the property, or shares with another common carrier in the |
10 | | transportation of the property, out of Illinois on a |
11 | | standard uniform bill of lading showing the seller of the |
12 | | property as the shipper or consignor of the property to a |
13 | | destination outside Illinois, for use outside Illinois. |
14 | | (18) Legal tender, currency, medallions, or gold or |
15 | | silver coinage issued by the State of Illinois, the |
16 | | government of the United States of America, or the |
17 | | government of any foreign country, and bullion. |
18 | | (19) Until July 1, 2003, oil field exploration, |
19 | | drilling, and production equipment, including (i) rigs and |
20 | | parts of rigs, rotary rigs, cable tool rigs, and workover |
21 | | rigs, (ii) pipe and tubular goods, including casing and |
22 | | drill strings, (iii) pumps and pump-jack units, (iv) |
23 | | storage tanks and flow lines, (v) any individual |
24 | | replacement part for oil field exploration, drilling, and |
25 | | production equipment, and (vi) machinery and equipment |
26 | | purchased for lease; but excluding motor vehicles required |
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1 | | to be registered under the Illinois Vehicle Code. |
2 | | (20) Photoprocessing machinery and equipment, |
3 | | including repair and replacement parts, both new and used, |
4 | | including that manufactured on special order, certified by |
5 | | the purchaser to be used primarily for photoprocessing, |
6 | | and including photoprocessing machinery and equipment |
7 | | purchased for lease. |
8 | | (21) Until July 1, 2028, coal and aggregate |
9 | | exploration, mining, off-highway hauling, processing, |
10 | | maintenance, and reclamation equipment, including |
11 | | replacement parts and equipment, and including equipment |
12 | | purchased for lease, but excluding motor vehicles required |
13 | | to be registered under the Illinois Vehicle Code. The |
14 | | changes made to this Section by Public Act 97-767 apply on |
15 | | and after July 1, 2003, but no claim for credit or refund |
16 | | is allowed on or after August 16, 2013 (the effective date |
17 | | of Public Act 98-456) for such taxes paid during the |
18 | | period beginning July 1, 2003 and ending on August 16, |
19 | | 2013 (the effective date of Public Act 98-456). |
20 | | (22) Until June 30, 2013, fuel and petroleum products |
21 | | sold to or used by an air carrier, certified by the carrier |
22 | | to be used for consumption, shipment, or storage in the |
23 | | conduct of its business as an air common carrier, for a |
24 | | flight destined for or returning from a location or |
25 | | locations outside the United States without regard to |
26 | | previous or subsequent domestic stopovers. |
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1 | | Beginning July 1, 2013, fuel and petroleum products |
2 | | sold to or used by an air carrier, certified by the carrier |
3 | | to be used for consumption, shipment, or storage in the |
4 | | conduct of its business as an air common carrier, for a |
5 | | flight that (i) is engaged in foreign trade or is engaged |
6 | | in trade between the United States and any of its |
7 | | possessions and (ii) transports at least one individual or |
8 | | package for hire from the city of origination to the city |
9 | | of final destination on the same aircraft, without regard |
10 | | to a change in the flight number of that aircraft. |
11 | | (23) A transaction in which the purchase order is |
12 | | received by a florist who is located outside Illinois, but |
13 | | who has a florist located in Illinois deliver the property |
14 | | to the purchaser or the purchaser's donee in Illinois. |
15 | | (24) Fuel consumed or used in the operation of ships, |
16 | | barges, or vessels that are used primarily in or for the |
17 | | transportation of property or the conveyance of persons |
18 | | for hire on rivers bordering on this State if the fuel is |
19 | | delivered by the seller to the purchaser's barge, ship, or |
20 | | vessel while it is afloat upon that bordering river. |
21 | | (25) Except as provided in item (25-5) of this |
22 | | Section, a motor vehicle sold in this State to a |
23 | | nonresident even though the motor vehicle is delivered to |
24 | | the nonresident in this State, if the motor vehicle is not |
25 | | to be titled in this State, and if a drive-away permit is |
26 | | issued to the motor vehicle as provided in Section 3-603 |
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1 | | of the Illinois Vehicle Code or if the nonresident |
2 | | purchaser has vehicle registration plates to transfer to |
3 | | the motor vehicle upon returning to his or her home state. |
4 | | The issuance of the drive-away permit or having the |
5 | | out-of-state registration plates to be transferred is |
6 | | prima facie evidence that the motor vehicle will not be |
7 | | titled in this State. |
8 | | (25-5) The exemption under item (25) does not apply if |
9 | | the state in which the motor vehicle will be titled does |
10 | | not allow a reciprocal exemption for a motor vehicle sold |
11 | | and delivered in that state to an Illinois resident but |
12 | | titled in Illinois. The tax collected under this Act on |
13 | | the sale of a motor vehicle in this State to a resident of |
14 | | another state that does not allow a reciprocal exemption |
15 | | shall be imposed at a rate equal to the state's rate of tax |
16 | | on taxable property in the state in which the purchaser is |
17 | | a resident, except that the tax shall not exceed the tax |
18 | | that would otherwise be imposed under this Act. At the |
19 | | time of the sale, the purchaser shall execute a statement, |
20 | | signed under penalty of perjury, of his or her intent to |
21 | | title the vehicle in the state in which the purchaser is a |
22 | | resident within 30 days after the sale and of the fact of |
23 | | the payment to the State of Illinois of tax in an amount |
24 | | equivalent to the state's rate of tax on taxable property |
25 | | in his or her state of residence and shall submit the |
26 | | statement to the appropriate tax collection agency in his |
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1 | | or her state of residence. In addition, the retailer must |
2 | | retain a signed copy of the statement in his or her |
3 | | records. Nothing in this item shall be construed to |
4 | | require the removal of the vehicle from this state |
5 | | following the filing of an intent to title the vehicle in |
6 | | the purchaser's state of residence if the purchaser titles |
7 | | the vehicle in his or her state of residence within 30 days |
8 | | after the date of sale. The tax collected under this Act in |
9 | | accordance with this item (25-5) shall be proportionately |
10 | | distributed as if the tax were collected at the 6.25% |
11 | | general rate imposed under this Act. |
12 | | (25-7) Beginning on July 1, 2007, no tax is imposed |
13 | | under this Act on the sale of an aircraft, as defined in |
14 | | Section 3 of the Illinois Aeronautics Act, if all of the |
15 | | following conditions are met: |
16 | | (1) the aircraft leaves this State within 15 days |
17 | | after the later of either the issuance of the final |
18 | | billing for the sale of the aircraft, or the |
19 | | authorized approval for return to service, completion |
20 | | of the maintenance record entry, and completion of the |
21 | | test flight and ground test for inspection, as |
22 | | required by 14 CFR 91.407; |
23 | | (2) the aircraft is not based or registered in |
24 | | this State after the sale of the aircraft; and |
25 | | (3) the seller retains in his or her books and |
26 | | records and provides to the Department a signed and |
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1 | | dated certification from the purchaser, on a form |
2 | | prescribed by the Department, certifying that the |
3 | | requirements of this item (25-7) are met. The |
4 | | certificate must also include the name and address of |
5 | | the purchaser, the address of the location where the |
6 | | aircraft is to be titled or registered, the address of |
7 | | the primary physical location of the aircraft, and |
8 | | other information that the Department may reasonably |
9 | | require. |
10 | | For purposes of this item (25-7): |
11 | | "Based in this State" means hangared, stored, or |
12 | | otherwise used, excluding post-sale customizations as |
13 | | defined in this Section, for 10 or more days in each |
14 | | 12-month period immediately following the date of the sale |
15 | | of the aircraft. |
16 | | "Registered in this State" means an aircraft |
17 | | registered with the Department of Transportation, |
18 | | Aeronautics Division, or titled or registered with the |
19 | | Federal Aviation Administration to an address located in |
20 | | this State. |
21 | | This paragraph (25-7) is exempt from the provisions of |
22 | | Section 2-70. |
23 | | (26) Semen used for artificial insemination of |
24 | | livestock for direct agricultural production. |
25 | | (27) Horses, or interests in horses, registered with |
26 | | and meeting the requirements of any of the Arabian Horse |
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1 | | Club Registry of America, Appaloosa Horse Club, American |
2 | | Quarter Horse Association, United States Trotting |
3 | | Association, or Jockey Club, as appropriate, used for |
4 | | purposes of breeding or racing for prizes. This item (27) |
5 | | is exempt from the provisions of Section 2-70, and the |
6 | | exemption provided for under this item (27) applies for |
7 | | all periods beginning May 30, 1995, but no claim for |
8 | | credit or refund is allowed on or after January 1, 2008 |
9 | | (the effective date of Public Act 95-88) for such taxes |
10 | | paid during the period beginning May 30, 2000 and ending |
11 | | on January 1, 2008 (the effective date of Public Act |
12 | | 95-88). |
13 | | (28) Computers and communications equipment utilized |
14 | | for any hospital purpose and equipment used in the |
15 | | diagnosis, analysis, or treatment of hospital patients |
16 | | sold to a lessor who leases the equipment, under a lease of |
17 | | one year or longer executed or in effect at the time of the |
18 | | purchase, to a hospital that has been issued an active tax |
19 | | exemption identification number by the Department under |
20 | | Section 1g of this Act. |
21 | | (29) Personal property sold to a lessor who leases the |
22 | | property, under a lease of one year or longer executed or |
23 | | in effect at the time of the purchase, to a governmental |
24 | | body that has been issued an active tax exemption |
25 | | identification number by the Department under Section 1g |
26 | | of this Act. |
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1 | | (30) Beginning with taxable years ending on or after |
2 | | December 31, 1995 and ending with taxable years ending on |
3 | | or before December 31, 2004, personal property that is |
4 | | donated for disaster relief to be used in a State or |
5 | | federally declared disaster area in Illinois or bordering |
6 | | Illinois by a manufacturer or retailer that is registered |
7 | | in this State to a corporation, society, association, |
8 | | foundation, or institution that has been issued a sales |
9 | | tax exemption identification number by the Department that |
10 | | assists victims of the disaster who reside within the |
11 | | declared disaster area. |
12 | | (31) Beginning with taxable years ending on or after |
13 | | December 31, 1995 and ending with taxable years ending on |
14 | | or before December 31, 2004, personal property that is |
15 | | used in the performance of infrastructure repairs in this |
16 | | State, including , but not limited to , municipal roads and |
17 | | streets, access roads, bridges, sidewalks, waste disposal |
18 | | systems, water and sewer line extensions, water |
19 | | distribution and purification facilities, storm water |
20 | | drainage and retention facilities, and sewage treatment |
21 | | facilities, resulting from a State or federally declared |
22 | | disaster in Illinois or bordering Illinois when such |
23 | | repairs are initiated on facilities located in the |
24 | | declared disaster area within 6 months after the disaster. |
25 | | (32) Beginning July 1, 1999, game or game birds sold |
26 | | at a "game breeding and hunting preserve area" as that |
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1 | | term is used in the Wildlife Code. This paragraph is |
2 | | exempt from the provisions of Section 2-70. |
3 | | (33) A motor vehicle, as that term is defined in |
4 | | Section 1-146 of the Illinois Vehicle Code, that is |
5 | | donated to a corporation, limited liability company, |
6 | | society, association, foundation, or institution that is |
7 | | determined by the Department to be organized and operated |
8 | | exclusively for educational purposes. For purposes of this |
9 | | exemption, "a corporation, limited liability company, |
10 | | society, association, foundation, or institution organized |
11 | | and operated exclusively for educational purposes" means |
12 | | all tax-supported public schools, private schools that |
13 | | offer systematic instruction in useful branches of |
14 | | learning by methods common to public schools and that |
15 | | compare favorably in their scope and intensity with the |
16 | | course of study presented in tax-supported schools, and |
17 | | vocational or technical schools or institutes organized |
18 | | and operated exclusively to provide a course of study of |
19 | | not less than 6 weeks duration and designed to prepare |
20 | | individuals to follow a trade or to pursue a manual, |
21 | | technical, mechanical, industrial, business, or commercial |
22 | | occupation. |
23 | | (34) Beginning January 1, 2000, personal property, |
24 | | including food, purchased through fundraising events for |
25 | | the benefit of a public or private elementary or secondary |
26 | | school, a group of those schools, or one or more school |
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1 | | districts if the events are sponsored by an entity |
2 | | recognized by the school district that consists primarily |
3 | | of volunteers and includes parents and teachers of the |
4 | | school children. This paragraph does not apply to |
5 | | fundraising events (i) for the benefit of private home |
6 | | instruction or (ii) for which the fundraising entity |
7 | | purchases the personal property sold at the events from |
8 | | another individual or entity that sold the property for |
9 | | the purpose of resale by the fundraising entity and that |
10 | | profits from the sale to the fundraising entity. This |
11 | | paragraph is exempt from the provisions of Section 2-70. |
12 | | (35) Beginning January 1, 2000 and through December |
13 | | 31, 2001, new or used automatic vending machines that |
14 | | prepare and serve hot food and beverages, including |
15 | | coffee, soup, and other items, and replacement parts for |
16 | | these machines. Beginning January 1, 2002 and through June |
17 | | 30, 2003, machines and parts for machines used in |
18 | | commercial, coin-operated amusement and vending business |
19 | | if a use or occupation tax is paid on the gross receipts |
20 | | derived from the use of the commercial, coin-operated |
21 | | amusement and vending machines. This paragraph is exempt |
22 | | from the provisions of Section 2-70. |
23 | | (35-5) Beginning August 23, 2001 and through June 30, |
24 | | 2016, food for human consumption that is to be consumed |
25 | | off the premises where it is sold (other than alcoholic |
26 | | beverages, soft drinks, and food that has been prepared |
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1 | | for immediate consumption) and prescription and |
2 | | nonprescription medicines, drugs, medical appliances, and |
3 | | insulin, urine testing materials, syringes, and needles |
4 | | used by diabetics, for human use, when purchased for use |
5 | | by a person receiving medical assistance under Article V |
6 | | of the Illinois Public Aid Code who resides in a licensed |
7 | | long-term care facility, as defined in the Nursing Home |
8 | | Care Act, or a licensed facility as defined in the ID/DD |
9 | | Community Care Act, the MC/DD Act, or the Specialized |
10 | | Mental Health Rehabilitation Act of 2013. |
11 | | (36) Beginning August 2, 2001, computers and |
12 | | communications equipment utilized for any hospital purpose |
13 | | and equipment used in the diagnosis, analysis, or |
14 | | treatment of hospital patients sold to a lessor who leases |
15 | | the equipment, under a lease of one year or longer |
16 | | executed or in effect at the time of the purchase, to a |
17 | | hospital that has been issued an active tax exemption |
18 | | identification number by the Department under Section 1g |
19 | | of this Act. This paragraph is exempt from the provisions |
20 | | of Section 2-70. |
21 | | (37) Beginning August 2, 2001, personal property sold |
22 | | to a lessor who leases the property, under a lease of one |
23 | | year or longer executed or in effect at the time of the |
24 | | purchase, to a governmental body that has been issued an |
25 | | active tax exemption identification number by the |
26 | | Department under Section 1g of this Act. This paragraph is |
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1 | | exempt from the provisions of Section 2-70. |
2 | | (38) Beginning on January 1, 2002 and through June 30, |
3 | | 2016, tangible personal property purchased from an |
4 | | Illinois retailer by a taxpayer engaged in centralized |
5 | | purchasing activities in Illinois who will, upon receipt |
6 | | of the property in Illinois, temporarily store the |
7 | | property in Illinois (i) for the purpose of subsequently |
8 | | transporting it outside this State for use or consumption |
9 | | thereafter solely outside this State or (ii) for the |
10 | | purpose of being processed, fabricated, or manufactured |
11 | | into, attached to, or incorporated into other tangible |
12 | | personal property to be transported outside this State and |
13 | | thereafter used or consumed solely outside this State. The |
14 | | Director of Revenue shall, pursuant to rules adopted in |
15 | | accordance with the Illinois Administrative Procedure Act, |
16 | | issue a permit to any taxpayer in good standing with the |
17 | | Department who is eligible for the exemption under this |
18 | | paragraph (38). The permit issued under this paragraph |
19 | | (38) shall authorize the holder, to the extent and in the |
20 | | manner specified in the rules adopted under this Act, to |
21 | | purchase tangible personal property from a retailer exempt |
22 | | from the taxes imposed by this Act. Taxpayers shall |
23 | | maintain all necessary books and records to substantiate |
24 | | the use and consumption of all such tangible personal |
25 | | property outside of the State of Illinois. |
26 | | (39) Beginning January 1, 2008, tangible personal |
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1 | | property used in the construction or maintenance of a |
2 | | community water supply, as defined under Section 3.145 of |
3 | | the Environmental Protection Act, that is operated by a |
4 | | not-for-profit corporation that holds a valid water supply |
5 | | permit issued under Title IV of the Environmental |
6 | | Protection Act. This paragraph is exempt from the |
7 | | provisions of Section 2-70. |
8 | | (40) Beginning January 1, 2010 and continuing through |
9 | | December 31, 2029, materials, parts, equipment, |
10 | | components, and furnishings incorporated into or upon an |
11 | | aircraft as part of the modification, refurbishment, |
12 | | completion, replacement, repair, or maintenance of the |
13 | | aircraft. This exemption includes consumable supplies used |
14 | | in the modification, refurbishment, completion, |
15 | | replacement, repair, and maintenance of aircraft. However, |
16 | | until January 1, 2024, this exemption excludes any |
17 | | materials, parts, equipment, components, and consumable |
18 | | supplies used in the modification, replacement, repair, |
19 | | and maintenance of aircraft engines or power plants, |
20 | | whether such engines or power plants are installed or |
21 | | uninstalled upon any such aircraft. "Consumable supplies" |
22 | | include, but are not limited to, adhesive, tape, |
23 | | sandpaper, general purpose lubricants, cleaning solution, |
24 | | latex gloves, and protective films. |
25 | | Beginning January 1, 2010 and continuing through |
26 | | December 31, 2023, this exemption applies only to the sale |
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1 | | of qualifying tangible personal property to persons who |
2 | | modify, refurbish, complete, replace, or maintain an |
3 | | aircraft and who (i) hold an Air Agency Certificate and |
4 | | are empowered to operate an approved repair station by the |
5 | | Federal Aviation Administration, (ii) have a Class IV |
6 | | Rating, and (iii) conduct operations in accordance with |
7 | | Part 145 of the Federal Aviation Regulations. The |
8 | | exemption does not include aircraft operated by a |
9 | | commercial air carrier providing scheduled passenger air |
10 | | service pursuant to authority issued under Part 121 or |
11 | | Part 129 of the Federal Aviation Regulations. From January |
12 | | 1, 2024 through December 31, 2029, this exemption applies |
13 | | only to the use of qualifying tangible personal property |
14 | | by: (A) persons who modify, refurbish, complete, repair, |
15 | | replace, or maintain aircraft and who (i) hold an Air |
16 | | Agency Certificate and are empowered to operate an |
17 | | approved repair station by the Federal Aviation |
18 | | Administration, (ii) have a Class IV Rating, and (iii) |
19 | | conduct operations in accordance with Part 145 of the |
20 | | Federal Aviation Regulations; and (B) persons who engage |
21 | | in the modification, replacement, repair, and maintenance |
22 | | of aircraft engines or power plants without regard to |
23 | | whether or not those persons meet the qualifications of |
24 | | item (A). |
25 | | The changes made to this paragraph (40) by Public Act |
26 | | 98-534 are declarative of existing law. It is the intent |
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1 | | of the General Assembly that the exemption under this |
2 | | paragraph (40) applies continuously from January 1, 2010 |
3 | | through December 31, 2024; however, no claim for credit or |
4 | | refund is allowed for taxes paid as a result of the |
5 | | disallowance of this exemption on or after January 1, 2015 |
6 | | and prior to February 5, 2020 (the effective date of |
7 | | Public Act 101-629). |
8 | | (41) Tangible personal property sold to a |
9 | | public-facilities corporation, as described in Section |
10 | | 11-65-10 of the Illinois Municipal Code, for purposes of |
11 | | constructing or furnishing a municipal convention hall, |
12 | | but only if the legal title to the municipal convention |
13 | | hall is transferred to the municipality without any |
14 | | further consideration by or on behalf of the municipality |
15 | | at the time of the completion of the municipal convention |
16 | | hall or upon the retirement or redemption of any bonds or |
17 | | other debt instruments issued by the public-facilities |
18 | | corporation in connection with the development of the |
19 | | municipal convention hall. This exemption includes |
20 | | existing public-facilities corporations as provided in |
21 | | Section 11-65-25 of the Illinois Municipal Code. This |
22 | | paragraph is exempt from the provisions of Section 2-70. |
23 | | (42) Beginning January 1, 2017 and through December |
24 | | 31, 2026, menstrual pads, tampons, and menstrual cups. |
25 | | (43) Merchandise that is subject to the Rental |
26 | | Purchase Agreement Occupation and Use Tax. The purchaser |
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1 | | must certify that the item is purchased to be rented |
2 | | subject to a rental-purchase rental purchase agreement, as |
3 | | defined in the Rental-Purchase Rental Purchase Agreement |
4 | | Act, and provide proof of registration under the Rental |
5 | | Purchase Agreement Occupation and Use Tax Act. This |
6 | | paragraph is exempt from the provisions of Section 2-70. |
7 | | (44) Qualified tangible personal property used in the |
8 | | construction or operation of a data center that has been |
9 | | granted a certificate of exemption by the Department of |
10 | | Commerce and Economic Opportunity, whether that tangible |
11 | | personal property is purchased by the owner, operator, or |
12 | | tenant of the data center or by a contractor or |
13 | | subcontractor of the owner, operator, or tenant. Data |
14 | | centers that would have qualified for a certificate of |
15 | | exemption prior to January 1, 2020 had Public Act 101-31 |
16 | | been in effect, may apply for and obtain an exemption for |
17 | | subsequent purchases of computer equipment or enabling |
18 | | software purchased or leased to upgrade, supplement, or |
19 | | replace computer equipment or enabling software purchased |
20 | | or leased in the original investment that would have |
21 | | qualified. |
22 | | The Department of Commerce and Economic Opportunity |
23 | | shall grant a certificate of exemption under this item |
24 | | (44) to qualified data centers as defined by Section |
25 | | 605-1025 of the Department of Commerce and Economic |
26 | | Opportunity Law of the Civil Administrative Code of |
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1 | | Illinois. |
2 | | For the purposes of this item (44): |
3 | | "Data center" means a building or a series of |
4 | | buildings rehabilitated or constructed to house |
5 | | working servers in one physical location or multiple |
6 | | sites within the State of Illinois. |
7 | | "Qualified tangible personal property" means: |
8 | | electrical systems and equipment; climate control and |
9 | | chilling equipment and systems; mechanical systems and |
10 | | equipment; monitoring and secure systems; emergency |
11 | | generators; hardware; computers; servers; data storage |
12 | | devices; network connectivity equipment; racks; |
13 | | cabinets; telecommunications cabling infrastructure; |
14 | | raised floor systems; peripheral components or |
15 | | systems; software; mechanical, electrical, or plumbing |
16 | | systems; battery systems; cooling systems and towers; |
17 | | temperature control systems; other cabling; and other |
18 | | data center infrastructure equipment and systems |
19 | | necessary to operate qualified tangible personal |
20 | | property, including fixtures; and component parts of |
21 | | any of the foregoing, including installation, |
22 | | maintenance, repair, refurbishment, and replacement of |
23 | | qualified tangible personal property to generate, |
24 | | transform, transmit, distribute, or manage electricity |
25 | | necessary to operate qualified tangible personal |
26 | | property; and all other tangible personal property |
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1 | | that is essential to the operations of a computer data |
2 | | center. The term "qualified tangible personal |
3 | | property" also includes building materials physically |
4 | | incorporated into the qualifying data center. To |
5 | | document the exemption allowed under this Section, the |
6 | | retailer must obtain from the purchaser a copy of the |
7 | | certificate of eligibility issued by the Department of |
8 | | Commerce and Economic Opportunity. |
9 | | This item (44) is exempt from the provisions of |
10 | | Section 2-70. |
11 | | (45) Beginning January 1, 2020 and through December |
12 | | 31, 2020, sales of tangible personal property made by a |
13 | | marketplace seller over a marketplace for which tax is due |
14 | | under this Act but for which use tax has been collected and |
15 | | remitted to the Department by a marketplace facilitator |
16 | | under Section 2d of the Use Tax Act are exempt from tax |
17 | | under this Act. A marketplace seller claiming this |
18 | | exemption shall maintain books and records demonstrating |
19 | | that the use tax on such sales has been collected and |
20 | | remitted by a marketplace facilitator. Marketplace sellers |
21 | | that have properly remitted tax under this Act on such |
22 | | sales may file a claim for credit as provided in Section 6 |
23 | | of this Act. No claim is allowed, however, for such taxes |
24 | | for which a credit or refund has been issued to the |
25 | | marketplace facilitator under the Use Tax Act, or for |
26 | | which the marketplace facilitator has filed a claim for |
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1 | | credit or refund under the Use Tax Act. |
2 | | (46) Beginning July 1, 2022, breast pumps, breast pump |
3 | | collection and storage supplies, and breast pump kits. |
4 | | This item (46) is exempt from the provisions of Section |
5 | | 2-70. As used in this item (46): |
6 | | "Breast pump" means an electrically controlled or |
7 | | manually controlled pump device designed or marketed to be |
8 | | used to express milk from a human breast during lactation, |
9 | | including the pump device and any battery, AC adapter, or |
10 | | other power supply unit that is used to power the pump |
11 | | device and is packaged and sold with the pump device at the |
12 | | time of sale. |
13 | | "Breast pump collection and storage supplies" means |
14 | | items of tangible personal property designed or marketed |
15 | | to be used in conjunction with a breast pump to collect |
16 | | milk expressed from a human breast and to store collected |
17 | | milk until it is ready for consumption. |
18 | | "Breast pump collection and storage supplies" |
19 | | includes, but is not limited to: breast shields and breast |
20 | | shield connectors; breast pump tubes and tubing adapters; |
21 | | breast pump valves and membranes; backflow protectors and |
22 | | backflow protector adaptors; bottles and bottle caps |
23 | | specific to the operation of the breast pump; and breast |
24 | | milk storage bags. |
25 | | "Breast pump collection and storage supplies" does not |
26 | | include: (1) bottles and bottle caps not specific to the |
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1 | | operation of the breast pump; (2) breast pump travel bags |
2 | | and other similar carrying accessories, including ice |
3 | | packs, labels, and other similar products; (3) breast pump |
4 | | cleaning supplies; (4) nursing bras, bra pads, breast |
5 | | shells, and other similar products; and (5) creams, |
6 | | ointments, and other similar products that relieve |
7 | | breastfeeding-related symptoms or conditions of the |
8 | | breasts or nipples, unless sold as part of a breast pump |
9 | | kit that is pre-packaged by the breast pump manufacturer |
10 | | or distributor. |
11 | | "Breast pump kit" means a kit that: (1) contains no |
12 | | more than a breast pump, breast pump collection and |
13 | | storage supplies, a rechargeable battery for operating the |
14 | | breast pump, a breastmilk cooler, bottle stands, ice |
15 | | packs, and a breast pump carrying case; and (2) is |
16 | | pre-packaged as a breast pump kit by the breast pump |
17 | | manufacturer or distributor. |
18 | | (47) Tangible personal property sold by or on behalf |
19 | | of the State Treasurer pursuant to the Revised Uniform |
20 | | Unclaimed Property Act. This item (47) is exempt from the |
21 | | provisions of Section 2-70. |
22 | | (48) Beginning on January 1, 2024, tangible personal |
23 | | property purchased by an active duty member of the armed |
24 | | forces of the United States who presents valid military |
25 | | identification and purchases the property using a form of |
26 | | payment where the federal government is the payor. The |
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1 | | member of the armed forces must complete, at the point of |
2 | | sale, a form prescribed by the Department of Revenue |
3 | | documenting that the transaction is eligible for the |
4 | | exemption under this paragraph. Retailers must keep the |
5 | | form as documentation of the exemption in their records |
6 | | for a period of not less than 6 years. "Armed forces of the |
7 | | United States" means the United States Army, Navy, Air |
8 | | Force, Marine Corps, or Coast Guard. This paragraph is |
9 | | exempt from the provisions of Section 2-70. |
10 | | (49) Tangible personal property to be used or consumed |
11 | | within a quantum computing campus enterprise zone |
12 | | designated by the Department of Commerce and Economic |
13 | | Opportunity under Section 605-1115 of the Department of |
14 | | Commerce and Economic Opportunity Law of the Civil |
15 | | Administrative Code of Illinois. This paragraph is exempt |
16 | | from the provisions of Section 2-70. |
17 | | (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21; |
18 | | 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700, |
19 | | Article 75, Section 75-20, eff. 4-19-22; 102-813, eff. |
20 | | 5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section |
21 | | 5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff. |
22 | | 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised |
23 | | 12-12-23.) |
24 | | Section 55. The Property Tax Code is amended by changing |
25 | | Section 18-184.15 as follows: |
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1 | | (35 ILCS 200/18-184.15) |
2 | | Sec. 18-184.15. REV Illinois project facilities for |
3 | | electric vehicles, electric vehicle component parts, or |
4 | | electric vehicle power supply equipment; abatement. |
5 | | (a) Any taxing district, upon a majority vote of its |
6 | | governing body, may, after determination of the assessed value |
7 | | as set forth in this Code, order the clerk of the appropriate |
8 | | municipality or county to abate , for a period not to exceed 30 |
9 | | consecutive years, any portion of real property taxes |
10 | | otherwise levied or extended by the taxing district on a REV |
11 | | Illinois Project facility owned by an electric vehicle |
12 | | manufacturer, electric vehicle component parts manufacturer, |
13 | | or an electric vehicle power supply manufacturer , or renewable |
14 | | energy manufacturer that is subject to an agreement with the |
15 | | Department of Commerce and Economic Opportunity under Section |
16 | | 45 of the Reimagining Energy and Vehicles in Illinois Act, |
17 | | during the period of time such agreement is in effect as |
18 | | specified by the Department of Commerce and Economic |
19 | | Opportunity. |
20 | | (b) Two or more taxing districts, upon a majority vote of |
21 | | each of their respective governing bodies, may agree to abate, |
22 | | for a period not to exceed 30 consecutive tax years, a portion |
23 | | of the real property taxes otherwise levied or extended by |
24 | | those taxing districts on a REV Illinois Project facility |
25 | | owned by an electric vehicle manufacturer, electric vehicle |
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1 | | component parts manufacturer, electric vehicle power supply |
2 | | manufacturer, or a renewable energy manufacturer that is |
3 | | subject to an agreement with the Department of Commerce and |
4 | | Economic Opportunity under Section 45 of the Reimagining |
5 | | Energy and Vehicles in Illinois Act. The agreement entered |
6 | | into by the taxing districts under this subsection (b) shall |
7 | | be filed with the county clerk who shall, for the period the |
8 | | agreement remains in effect, abate the portion of the real |
9 | | estate taxes levied or extended by those taxing districts as |
10 | | directed in the agreement. Any such agreement entered into by |
11 | | 2 or more taxing districts before the effective date of this |
12 | | amendatory Act of the 103rd General Assembly that is not |
13 | | inconsistent with the provisions of this subsection (b) is |
14 | | hereby declared valid and enforceable for the effective period |
15 | | of that agreement. |
16 | | (Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23.) |
17 | | Section 60. The River Edge Redevelopment Zone Act is |
18 | | amended by changing Sections 10-4, 10-5.3, 10-10.3, and |
19 | | 10-10.4 as follows: |
20 | | (65 ILCS 115/10-4) |
21 | | Sec. 10-4. Qualifications for River Edge Redevelopment |
22 | | Zones. An area is qualified to become a zone if it: |
23 | | (1) is a contiguous area adjacent to or surrounding a |
24 | | river; |
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1 | | (2) comprises a minimum of one half square mile and |
2 | | not more than 12 square miles, exclusive of lakes and |
3 | | waterways; |
4 | | (3) satisfies any additional criteria established by |
5 | | the Department consistent with the purposes of this Act; |
6 | | (4) is entirely within a single municipality; and |
7 | | (5) has at least 100 acres of environmentally |
8 | | challenged land within 1500 yards of the riverfront. |
9 | | Any River Edge Redevelopment Zone may have an overlapping |
10 | | geographic area with an Enterprise Zone. If a taxpayer is |
11 | | located in an area with an overlapping Enterprise Zone and |
12 | | River Edge Redevelopment Zone, the taxpayer must elect, in the |
13 | | form and manner required by the Department, from which program |
14 | | it would like to request benefits. |
15 | | (Source: P.A. 94-1021, eff. 7-12-06; 94-1022, eff. 7-12-06.) |
16 | | (65 ILCS 115/10-5.3) |
17 | | Sec. 10-5.3. Certification of River Edge Redevelopment |
18 | | Zones. |
19 | | (a) Approval of designated River Edge Redevelopment Zones |
20 | | shall be made by the Department by certification of the |
21 | | designating ordinance. The Department shall promptly issue a |
22 | | certificate for each zone upon its approval. The certificate |
23 | | shall be signed by the Director of the Department, shall make |
24 | | specific reference to the designating ordinance, which shall |
25 | | be attached thereto, and shall be filed in the office of the |
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1 | | Secretary of State. A certified copy of the River Edge |
2 | | Redevelopment Zone Certificate, or a duplicate original |
3 | | thereof, shall be recorded in the office of the recorder of |
4 | | deeds of the county in which the River Edge Redevelopment Zone |
5 | | lies. |
6 | | (b) A River Edge Redevelopment Zone shall be effective |
7 | | upon its certification. The Department shall transmit a copy |
8 | | of the certification to the Department of Revenue, and to the |
9 | | designating municipality. Upon certification of a River Edge |
10 | | Redevelopment Zone, the terms and provisions of the |
11 | | designating ordinance shall be in effect, and may not be |
12 | | amended or repealed except in accordance with Section 10-5.4. |
13 | | (c) A River Edge Redevelopment Zone shall be in effect for |
14 | | the period stated in the certificate, which shall in no event |
15 | | exceed 30 calendar years. Zones shall terminate at midnight of |
16 | | December 31 of the final calendar year of the certified term, |
17 | | except as provided in Section 10-5.4. |
18 | | (d) In calendar years 2006 and 2007, the Department may |
19 | | certify one pilot River Edge Redevelopment Zone in the City of |
20 | | East St. Louis, one pilot River Edge Redevelopment Zone in the |
21 | | City of Rockford, and one pilot River Edge Redevelopment Zone |
22 | | in the City of Aurora. |
23 | | In calendar year 2009, the Department may certify one |
24 | | pilot River Edge Redevelopment Zone in the City of Elgin. |
25 | | On or after the effective date of this amendatory Act of |
26 | | the 97th General Assembly, the Department may certify one |
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1 | | additional pilot River Edge Redevelopment Zone in the City of |
2 | | Peoria. |
3 | | On or after the effective date of this amendatory Act of |
4 | | the 103rd General Assembly, the Department may certify 2 |
5 | | additional pilot River Edge Redevelopment Zones, including one |
6 | | in the City of Joliet and one in the City of Kankakee. |
7 | | On or after the effective date of this amendatory Act of |
8 | | the 103rd General Assembly, the Department may certify 7 |
9 | | additional pilot River Edge Redevelopment Zones, including one |
10 | | in the City of East Moline, one in the City of Moline, one in |
11 | | the City of Ottawa, one |