Rep. Dave Vella

Filed: 5/14/2024

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 817

2    AMENDMENT NO. ______. Amend House Bill 817 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Department of Commerce and Economic
5Opportunity Law of the Civil Administrative Code of Illinois
6is 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,
11services are the storage, management, and processing of
12digital data; and (2) that is used to house (A) computer and
13network systems, including associated components such as
14servers, network equipment and appliances, telecommunications,
15and data storage systems, (B) systems for monitoring and
16managing infrastructure performance, (C) Internet-related

 

 

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1equipment 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
5employee works for a tenant of the quantum campus at a rate of
6at least 35 hours per week. Vacations, paid holidays, and sick
7time are included in this computation. Overtime is not
8considered a part of regular hours.
9    "Qualified tangible property" means: electrical systems
10and equipment; climate control and chilling equipment and
11systems; mechanical systems and equipment; monitoring and
12secure systems; emergency generators; hardware; computers;
13servers; data storage devices; network connectivity equipment;
14racks; cabinets; telecommunications cabling infrastructure;
15raised floor systems; peripheral components or systems;
16software; mechanical, electrical, or plumbing systems; battery
17systems; cooling systems and towers; temperature control
18systems; other cabling; and other quantum computing
19infrastructure equipment and systems necessary to operate
20qualified tangible property, including fixtures; and component
21parts of any of the foregoing, including installation,
22maintenance, repair, refurbishment, and replacement of
23qualified tangible property to generate, transform, transmit,
24distribute, or manage electricity necessary to operate
25qualified tangible property; and all other tangible property
26that is essential to the operations of a quantum computing

 

 

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1campus. "Qualified tangible property" also includes building
2materials physically incorporated into the quantum computing
3campus.
4    "Quantum computing campus enterprise zone" or "campus" is
5a contiguous area located in the State of Illinois that is
6designated by the Department as a quantum computing campus
7enterprise zone in order to support the demand for quantum
8computing research, development, and implementation for
9practical use. A quantum campus enterprise zone may include
10educational intuitions, nonprofit research and development
11organizations, and for-profit organizations serving as anchor
12tenants and joining tenants that, with approval from the
13Department, may change. Tenants located at the campus shall
14have direct and supporting roles in quantum computing
15activities. Eligible tenants include quantum computer
16operators and research facilities, data centers, manufacturers
17and assemblers of quantum computers and component parts,
18cryogenic or refrigeration facilities, and other facilities
19determined, by industry and academic leaders, to be
20fundamental to the research and development of quantum
21computing for practical solutions. Quantum computing shall
22include the research, development, and use of computing
23methods that generate and manipulate quantum bits in a
24controlled quantum state. This includes the use of photons,
25semiconductors, superconductors, tapped ions, and other
26industry and academically regarded methods for simulating

 

 

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1quantum bits. Additionally, a quantum campus shall meet the
2following 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
4enterprise zone shall qualify for the following exemptions and
5credits:
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
20under this Section shall be issued by the Department of
21Commerce and Economic Opportunity.
22    (d) Entities seeking to form a quantum computing campus
23enterprise zone must apply to the Department in the manner
24specified by the Department. Entities seeking to join an
25established campus must apply for an amendment to the existing
26campus. This application for amendment must be submitted to

 

 

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1the Department with support from other campus members.
2    The Department shall determine the duration of the
3certificate of exemption awarded under this Act. The duration
4of the certificate of exemption may not exceed 20 calendar
5years and one renewal for an additional 20 years.
6    The Department and any tenant located in a quantum
7computing campus enterprise zone seeking the benefits under
8this Section must enter into a memorandum of understanding
9that, 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
23designation, send a letter of notification to each member of
24the General Assembly whose legislative district or
25representative district contains all or part of the designated
26area.

 

 

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1    (e) Beginning on July 1, 2025, and each year thereafter,
2the Department shall annually report to the Governor and the
3General Assembly on the outcomes and effectiveness of this
4amendatory Act of the 103rd General Assembly. The report shall
5include 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
19zone seeking a certificate of exemption related to the
20construction of required facilities shall require the
21contractor 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
3this Section must annually report to the Department of Revenue
4the total quantum computing campus enterprise zone benefits
5that are received by the tenant. Reports are due no later than
6September 30 of each year and shall cover the previous
7calendar year. The first report shall cover the 2025 calendar
8year and is due no later than September 30, 2026.
9    Failure to file a report under this subsection (g) may
10result in suspension or revocation of the certificate of
11exemption. Factors to be considered in determining whether a
12certificate of exemption shall be suspended or revoked
13include, but are not limited to, prior compliance with the
14reporting requirements, cooperation in discontinuing and
15correcting violations, the extent of the violation, and
16whether the violation was willful or inadvertent.
17    (h) The Department shall not issue any new certificates of
18exemption under the provisions of this Section after July 1,
192030. This sunset shall not affect any existing certificates
20of exemption in effect on July 1, 2030.
21    (i) The Department shall adopt rules to implement and
22administer this Section.
 
23    Section 10. The Illinois Enterprise Zone Act is amended by
24changing 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
4in the encouragement, development, growth, and expansion of
5the private sector through large scale investment and
6development projects, the Department is authorized to receive
7and approve applications for the designation of "High Impact
8Businesses" in Illinois, for an initial term of 20 years with
9an option for renewal for a term not to exceed 20 years,
10subject 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
13pursuant to subdivision (a)(3)(A) of this Section shall
14qualify for the credits and exemptions described in the
15following Acts: Section 9-222 and Section 9-222.1A of the
16Public Utilities Act, subsection (h) of Section 201 of the
17Illinois Income Tax Act, and Section 1d of the Retailers'
18Occupation Tax Act; provided that these credits and exemptions
19described in these Acts shall not be authorized until the
20minimum investments set forth in subdivision (a)(3)(A) of this
21Section have been placed in service in qualified properties
22and, in the case of the exemptions described in the Public
23Utilities Act and Section 1d of the Retailers' Occupation Tax
24Act, the minimum full-time equivalent jobs or full-time
25retained jobs set forth in subdivision (a)(3)(A) of this
26Section have been created or retained. Businesses designated

 

 

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1as High Impact Businesses under this Section shall also
2qualify for the exemption described in Section 5l of the
3Retailers' Occupation Tax Act. The credit provided in
4subsection (h) of Section 201 of the Illinois Income Tax Act
5shall be applicable to investments in qualified property as
6set forth in subdivision (a)(3)(A) of this Section.
7    (b-5) Businesses designated as High Impact Businesses
8pursuant 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
10qualify for the credits and exemptions described in the
11following Acts: Section 51 of the Retailers' Occupation Tax
12Act, Section 9-222 and Section 9-222.1A of the Public
13Utilities Act, and subsection (h) of Section 201 of the
14Illinois Income Tax Act; however, the credits and exemptions
15authorized under Section 9-222 and Section 9-222.1A of the
16Public Utilities Act, and subsection (h) of Section 201 of the
17Illinois Income Tax Act shall not be authorized until the new
18electric generating facility, the new gasification facility,
19the new transmission facility, the new, expanded, or reopened
20coal mine, or the new cultured cell material food production
21facility, or the existing or planned grocery store is
22operational, except that a new electric generating facility
23whose primary fuel source is natural gas is eligible only for
24the exemption under Section 5l of the Retailers' Occupation
25Tax Act.
26    (b-6) Businesses designated as High Impact Businesses

 

 

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1pursuant to subdivision (a)(3)(E) or (a)(3)(E-5) of this
2Section shall qualify for the exemptions described in Section
35l of the Retailers' Occupation Tax Act; any business so
4designated as a High Impact Business being, for purposes of
5this Section, a "Wind Energy Business".
6    (b-7) Beginning on January 1, 2021, businesses designated
7as High Impact Businesses by the Department shall qualify for
8the High Impact Business construction jobs credit under
9subsection (h-5) of Section 201 of the Illinois Income Tax Act
10if the business meets the criteria set forth in subsection (i)
11of this Section. The total aggregate amount of credits awarded
12under the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
13shall not exceed $20,000,000 in any State fiscal year.
14    (c) High Impact Businesses located in federally designated
15foreign trade zones or sub-zones are also eligible for
16additional credits, exemptions and deductions as described in
17the following Acts: Section 9-221 and Section 9-222.1 of the
18Public Utilities Act; and subsection (g) of Section 201, and
19Section 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
22Section, existing Illinois businesses which apply for
23designation as a High Impact Business must provide the
24Department with the prospective plan for which 1,500 full-time
25retained jobs would be eliminated in the event that the
26business is not designated.

 

 

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1    (e) Except for new businesses contemplated under
2subdivision (a)(3)(E), or subdivision (a)(3)(G), or
3subdivision (a)(3)(H) of this Section, new proposed facilities
4which apply for designation as High Impact Business must
5provide the Department with proof of alternative non-Illinois
6sites which would receive the proposed investment and job
7creation in the event that the business is not designated as a
8High Impact Business.
9    (f) Except for businesses contemplated under subdivision
10(a)(3)(E), or subdivision (a)(3)(G), or subdivision (a)(3)(H)
11of this Section, in the event that a business is designated a
12High Impact Business and it is later determined after
13reasonable notice and an opportunity for a hearing as provided
14under the Illinois Administrative Procedure Act, that the
15business would have placed in service in qualified property
16the investments and created or retained the requisite number
17of jobs without the benefits of the High Impact Business
18designation, the Department shall be required to immediately
19revoke the designation and notify the Director of the
20Department of Revenue who shall begin proceedings to recover
21all wrongfully exempted State taxes with interest. The
22business shall also be ineligible for all State funded
23Department programs for a period of 10 years.
24    (g) The Department shall revoke a High Impact Business
25designation if the participating business fails to comply with
26the terms and conditions of the designation.

 

 

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1    (h) Prior to designating a business, the Department shall
2provide the members of the General Assembly and Commission on
3Government Forecasting and Accountability with a report
4setting forth the terms and conditions of the designation and
5guarantees that have been received by the Department in
6relation to the proposed business being designated.
7    (i) High Impact Business construction jobs credit.
8Beginning on January 1, 2021, a High Impact Business may
9receive a tax credit against the tax imposed under subsections
10(a) and (b) of Section 201 of the Illinois Income Tax Act in an
11amount equal to 50% of the amount of the incremental income tax
12attributable to High Impact Business construction jobs credit
13employees employed in the course of completing a High Impact
14Business construction jobs project. However, the High Impact
15Business construction jobs credit may equal 75% of the amount
16of the incremental income tax attributable to High Impact
17Business construction jobs credit employees if the High Impact
18Business construction jobs credit project is located in an
19underserved area.
20    The Department shall certify to the Department of Revenue:
21(1) the identity of taxpayers that are eligible for the High
22Impact Business construction jobs credit; and (2) the amount
23of High Impact Business construction jobs credits that are
24claimed pursuant to subsection (h-5) of Section 201 of the
25Illinois Income Tax Act in each taxable year. Any business
26entity that receives a High Impact Business construction jobs

 

 

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1credit shall maintain a certified payroll pursuant to
2subsection (j) of this Section.
3    As used in this subsection (i):
4    "High Impact Business construction jobs credit" means an
5amount equal to 50% (or 75% if the High Impact Business
6construction project is located in an underserved area) of the
7incremental income tax attributable to High Impact Business
8construction job employees. The total aggregate amount of
9credits awarded under the Blue Collar Jobs Act (Article 20 of
10Public Act 101-9) shall not exceed $20,000,000 in any State
11fiscal year
12    "High Impact Business construction job employee" means a
13laborer or worker who is employed by a an Illinois contractor
14or subcontractor in the actual construction work on the site
15of a High Impact Business construction job project.
16    "High Impact Business construction jobs project" means
17building a structure or building or making improvements of any
18kind to real property, undertaken and commissioned by a
19business that was designated as a High Impact Business by the
20Department. The term "High Impact Business construction jobs
21project" does not include the routine operation, routine
22repair, or routine maintenance of existing structures,
23buildings, or real property.
24    "Incremental income tax" means the total amount withheld
25during the taxable year from the compensation of High Impact
26Business construction job employees.

 

 

10300HB0817ham001- 23 -LRB103 04410 HLH 72543 a

1    "Underserved area" means a geographic area that meets one
2or 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
18engaged in and executing a High Impact Business Construction
19jobs project, as defined under subsection (i) of this Section,
20for a business that is entitled to a credit pursuant to
21subsection (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

 

 

10300HB0817ham001- 24 -LRB103 04410 HLH 72543 a

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
16certified payroll of a lower-tier subcontractor, provided the
17general contractor does not knowingly rely upon a
18subcontractor's false certification.
19    Any contractor or subcontractor subject to this
20subsection, and any officer, employee, or agent of such
21contractor or subcontractor whose duty as an officer,
22employee, or agent it is to file a certified payroll under this
23subsection, who willfully fails to file such a certified
24payroll on or before the date such certified payroll is
25required by this paragraph to be filed and any person who
26willfully files a false certified payroll that is false as to

 

 

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1any material fact is in violation of this Act and guilty of a
2Class A misdemeanor.
3    The taxpayer in charge of the project shall keep the
4records submitted in accordance with this subsection on or
5after June 5, 2019 (the effective date of Public Act 101-9) for
6a period of 5 years from the date of the last payment for work
7on a contract or subcontract for the High Impact Business
8construction jobs project.
9    The records submitted in accordance with this subsection
10shall be considered public records, except an employee's
11address, telephone number, and social security number, and
12made available in accordance with the Freedom of Information
13Act. The Department of Labor shall share the information with
14the Department in order to comply with the awarding of a High
15Impact Business construction jobs credit. A contractor,
16subcontractor, or public body may retain records required
17under this Section in paper or electronic format.
18    (j-5) Annually, until construction is completed, a company
19seeking High Impact Business Construction Job credits shall
20submit a report that, at a minimum, describes the projected
21project scope, timeline, and anticipated budget. Once the
22project has commenced, the annual report shall include actual
23data for the prior year as well as projections for each
24additional year through completion of the project. The
25Department shall issue detailed reporting guidelines
26prescribing the requirements of construction-related reports.

 

 

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1    In order to receive credit for construction expenses, the
2company must provide the Department of Commerce and Economic
3Opportunity with evidence that a certified third-party
4executed an Agreed-Upon Procedure (AUP) verifying the
5construction expenses or accept the standard construction wage
6expense estimated by the Department of Commerce and Economic
7Opportunity.
8    Upon review of the final project scope, timeline, budget,
9and AUP, the Department shall issue a tax credit certificate
10reflecting a percentage of the total construction job wages
11paid throughout the completion of the project.
12    (k) Upon 7 business days' notice, each taxpayer contractor
13and subcontractor shall make available to each State agency
14and to federal, State, or local law enforcement agencies and
15prosecutors for inspection and copying at a location within
16this State during reasonable hours, the report under this
17subsection (j-5) records identified in this subsection (j) to
18the taxpayer in charge of the High Impact Business
19construction jobs project, its officers and agents, the
20Director of the Department of Labor and his or her deputies and
21agents, and to federal, State, or local law enforcement
22agencies and prosecutors.
23    (l) The changes made to this Section by Public Act
24102-1125 this amendatory Act of the 102nd General Assembly,
25other than the changes in subsection (a), apply to High Impact
26Businesses high impact businesses that submit applications on

 

 

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1or after February 3, 2023 (the effective date of Public Act
2102-1125) this amendatory Act of the 102nd General Assembly.
3(Source: P.A. 102-108, eff. 1-1-22; 102-558, eff. 8-20-21;
4102-605, eff. 8-27-21; 102-662, eff. 9-15-21; 102-673, eff.
511-30-21; 102-813, eff. 5-13-22; 102-1125, eff. 2-3-23; 103-9,
6eff. 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
10certified Enterprise Zone that makes a capital investment of
11at least $10,000,000 in an Enterprise Zone construction jobs
12project may receive an Enterprise Zone construction jobs
13credit against the tax imposed under subsections (a) and (b)
14of Section 201 of the Illinois Income Tax Act in an amount
15equal to 50% of the amount of the incremental income tax
16attributable to Enterprise Zone construction jobs credit
17employees employed in the course of completing an Enterprise
18Zone construction jobs project. However, the Enterprise Zone
19construction jobs credit may equal 75% of the amount of the
20incremental income tax attributable to Enterprise Zone
21construction jobs credit employees if the project is located
22in an underserved area.
23    (b) A business entity seeking a credit under this Section
24must submit an application to the Department and must receive
25approval from the designating municipality or county and the

 

 

10300HB0817ham001- 29 -LRB103 04410 HLH 72543 a

1Department for the Enterprise Zone construction jobs credit
2project. The application must describe the nature and benefit
3of the project to the certified Enterprise Zone and its
4potential contributors. The total aggregate amount of credits
5awarded under the Blue Collar Jobs Act (Article 20 of Public
6Act 101-9) shall not exceed $20,000,000 in any State fiscal
7year.
8    Within 45 days after receipt of an application, the
9Department shall give notice to the applicant as to whether
10the application has been approved or disapproved. If the
11Department disapproves the application, it shall specify the
12reasons for this decision and allow 60 days for the applicant
13to amend and resubmit its application. The Department shall
14provide assistance upon request to applicants. Resubmitted
15applications shall receive the Department's approval or
16disapproval within 30 days after the application is
17resubmitted. Those resubmitted applications satisfying initial
18Department objectives shall be approved unless reasonable
19circumstances warrant disapproval.
20    On an annual basis, the designated zone organization shall
21furnish a statement to the Department on the programmatic and
22financial status of any approved project and an audited
23financial statement of the project.
24    The Department shall certify to the Department of Revenue
25the identity of taxpayers who are eligible for the credits and
26the amount of credits that are claimed pursuant to

 

 

10300HB0817ham001- 30 -LRB103 04410 HLH 72543 a

1subparagraph (8) of subsection (f) of Section 201 the Illinois
2Income Tax Act.
3    The Enterprise Zone construction jobs credit project must
4be undertaken by the business entity in the course of
5completing a project that complies with the criteria contained
6in Section 4 of this Act and is undertaken in a certified
7Enterprise Zone. The Department shall adopt any necessary
8rules for the implementation of this subsection (b).
9    (c) (Blank). Any business entity that receives an
10Enterprise Zone construction jobs credit shall maintain a
11certified payroll pursuant to subsection (d) of this Section.
12    (d) Annually, until construction is completed, a company
13seeking Enterprise Zone construction job credits shall submit
14a report that, at a minimum, describes the projected project
15scope, timeline, and anticipated budget. Once the project has
16commenced, the annual report shall include actual data for the
17prior year as well as projections for each additional year
18through completion of the project. The Department shall issue
19detailed reporting guidelines prescribing the requirements of
20construction-related reports.
21    In order to receive credit for construction expenses, the
22company must provide the Department of Commerce and Economic
23Opportunity with evidence that a certified third-party
24executed an Agreed-Upon Procedure (AUP) verifying the
25construction expenses or accept the standard construction wage
26expense estimated by the Department of Commerce and Economic

 

 

10300HB0817ham001- 31 -LRB103 04410 HLH 72543 a

1Opportunity.
2    Upon review of the final project scope, timeline, budget,
3and AUP, the Department shall issue a tax credit certificate
4reflecting a percentage of the total construction job wages
5paid throughout the completion of the project.
6    Each contractor and subcontractor who is engaged in and is
7executing an Enterprise Zone construction jobs credit project
8for a business that is entitled to a credit pursuant to this
9Section 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

 

 

10300HB0817ham001- 32 -LRB103 04410 HLH 72543 a

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

 

 

10300HB0817ham001- 33 -LRB103 04410 HLH 72543 a

1certified payroll of a lower-tier subcontractor, provided the
2general contractor does not knowingly rely upon a
3subcontractor's false certification.
4    Any contractor or subcontractor subject to this
5subsection, and any officer, employee, or agent of such
6contractor or subcontractor whose duty as an officer,
7employee, or agent it is to file a certified payroll under this
8subsection, who willfully fails to file such a certified
9payroll on or before the date such certified payroll is
10required by this paragraph to be filed and any person who
11willfully files a false certified payroll that is false as to
12any material fact is in violation of this Act and guilty of a
13Class A misdemeanor.
14    The taxpayer in charge of the project shall keep the
15records submitted in accordance with this subsection on or
16after June 5, 2019 (the effective date of Public Act 101-9) for
17a period of 5 years from the date of the last payment for work
18on a contract or subcontract for the project.
19    The records submitted in accordance with this subsection
20shall be considered public records, except an employee's
21address, telephone number, and social security number, and
22made available in accordance with the Freedom of Information
23Act. The Department of Labor shall accept any reasonable
24submissions by the contractor that meet the requirements of
25this subsection and shall share the information with the
26Department in order to comply with the awarding of Enterprise

 

 

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1Zone construction jobs credits. A contractor, subcontractor,
2or public body may retain records required under this Section
3in paper or electronic format.
4    Upon 7 business days' notice, the taxpayer contractor and
5each subcontractor shall make available to any State agency
6and to federal, State, or local law enforcement agencies and
7prosecutors for inspection and copying at a location within
8this State during reasonable hours, the report under this
9subsection (d) records identified in paragraph (1) of this
10subsection to the taxpayer in charge of the project, its
11officers and agents, the Director of Labor and his or her
12deputies and agents, and to federal, State, or local law
13enforcement agencies and prosecutors.
14    (e) As used in this Section:
15    "Enterprise Zone construction jobs credit" means an amount
16equal to 50% (or 75% if the project is located in an
17underserved area) of the incremental income tax attributable
18to Enterprise Zone construction jobs credit employees.
19    "Enterprise Zone construction jobs credit employee" means
20a laborer or worker who is employed by a an Illinois contractor
21or subcontractor in the actual construction work on the site
22of an Enterprise Zone construction jobs credit project.
23    "Enterprise Zone construction jobs credit project" means
24building a structure or building or making improvements of any
25kind to real property commissioned and paid for by a business
26that has applied and been approved for an Enterprise Zone

 

 

10300HB0817ham001- 35 -LRB103 04410 HLH 72543 a

1construction jobs credit pursuant to this Section. "Enterprise
2Zone construction jobs credit project" does not include the
3routine operation, routine repair, or routine maintenance of
4existing structures, buildings, or real property.
5    "Incremental income tax" means the total amount withheld
6during the taxable year from the compensation of Enterprise
7Zone construction jobs credit employees.
8    "Underserved area" means a geographic area that meets one
9or 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;
25102-558, eff. 8-20-21.)
 

 

 

10300HB0817ham001- 36 -LRB103 04410 HLH 72543 a

1    Section 15. The Reimagining Energy and Vehicles in
2Illinois Act is amended by changing Sections 10, 20, 35, 45,
365, 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
7battery cell that can be integrated into a module, pack, or
8system to be used in energy storage applications, including a
9battery used in an electric vehicle or the electric grid.
10    "Advanced battery component" means a component of an
11advanced battery, including materials, enhancements,
12enclosures, anodes, cathodes, electrolytes, cells, and other
13associated technologies that comprise an advanced battery.
14    "Agreement" means the agreement between a taxpayer and the
15Department under the provisions of Section 45 of this Act.
16    "Applicant" means a taxpayer that (i) operates a business
17in Illinois or is planning to locate a business within the
18State of Illinois and (ii) is engaged in interstate or
19intrastate commerce as an electric vehicle manufacturer, an
20electric vehicle component parts manufacturer, or an electric
21vehicle power supply equipment manufacturer. For applications
22for credits under this Act that are submitted on or after the
23effective date of this amendatory Act of the 102nd General
24Assembly, "applicant" also includes a taxpayer that (i)
25operates a business in Illinois or is planning to locate a

 

 

10300HB0817ham001- 37 -LRB103 04410 HLH 72543 a

1business within the State of Illinois and (ii) is engaged in
2interstate or intrastate commerce as a renewable energy
3manufacturer. "Applicant" does not include a taxpayer who
4closes or substantially reduces by more than 50% operations at
5one location in the State and relocates substantially the same
6operation to another location in the State. This does not
7prohibit a Taxpayer from expanding its operations at another
8location in the State. This also does not prohibit a Taxpayer
9from moving its operations from one location in the State to
10another location in the State for the purpose of expanding the
11operation, provided that the Department determines that
12expansion cannot reasonably be accommodated within the
13municipality or county in which the business is located, or,
14in the case of a business located in an incorporated area of
15the county, within the county in which the business is
16located, after conferring with the chief elected official of
17the municipality or county and taking into consideration any
18evidence offered by the municipality or county regarding the
19ability to accommodate expansion within the municipality or
20county.
21    "Battery raw materials" means the raw and processed form
22of a mineral, metal, chemical, or other material used in an
23advanced battery component.
24    "Battery raw materials refining service provider" means a
25business that operates a facility that filters, sifts, and
26treats battery raw materials for use in an advanced battery.

 

 

10300HB0817ham001- 38 -LRB103 04410 HLH 72543 a

1    "Battery recycling and reuse manufacturer" means a
2manufacturer that is primarily engaged in the recovery,
3retrieval, processing, recycling, or recirculating of battery
4raw materials for new use in electric vehicle batteries.
5    "Capital improvements" means the purchase, renovation,
6rehabilitation, or construction of permanent tangible land,
7buildings, structures, equipment, and furnishings in an
8approved project sited in Illinois and expenditures for goods
9or services that are normally capitalized, including
10organizational costs and research and development costs
11incurred in Illinois. For land, buildings, structures, and
12equipment that are leased, the lease must equal or exceed the
13term of the agreement, and the cost of the property shall be
14determined from the present value, using the corporate
15interest rate prevailing at the time of the application, of
16the lease payments.
17    "Credit" means either a "REV Illinois Credit" or a "REV
18Construction Jobs Credit" agreed to between the Department and
19applicant under this Act.
20    "Department" means the Department of Commerce and Economic
21Opportunity.
22    "Director" means the Director of Commerce and Economic
23Opportunity.
24    "Electric vehicle" means a vehicle that is exclusively
25powered by and refueled by electricity, including electricity
26generated through a hydrogen fuel cells or solar technology.

 

 

10300HB0817ham001- 39 -LRB103 04410 HLH 72543 a

1"Electric vehicle", except when referencing aircraft with
2hybrid electric propulsion systems, does not include hybrid
3electric vehicles, electric bicycles, or extended-range
4electric vehicles that are also equipped with conventional
5fueled propulsion or auxiliary engines.
6    "Electric vehicle manufacturer" means a new or existing
7manufacturer that is primarily focused on reequipping,
8expanding, or establishing a manufacturing facility in
9Illinois that produces electric vehicles as defined in this
10Section.
11    "Electric vehicle component parts manufacturer" means a
12new or existing manufacturer that is focused on reequipping,
13expanding, or establishing a manufacturing facility in
14Illinois that produces parts or accessories used in electric
15vehicles, as defined by this Section, including advanced
16battery component parts. The changes to this definition of
17"electric vehicle component parts manufacturer" apply to
18agreements under this Act that are entered into on or after the
19effective date of this amendatory Act of the 102nd General
20Assembly.
21    "Electric vehicle power supply equipment" means the
22equipment used specifically for the purpose of delivering
23electricity to an electric vehicle, including hydrogen fuel
24cells or solar refueling infrastructure.
25    "Electric vehicle power supply manufacturer" means a new
26or existing manufacturer that is focused on reequipping,

 

 

10300HB0817ham001- 40 -LRB103 04410 HLH 72543 a

1expanding, or establishing a manufacturing facility in
2Illinois that produces electric vehicle power supply equipment
3used for the purpose of delivering electricity to an electric
4vehicle, including hydrogen fuel cell or solar refueling
5infrastructure.
6    "Electric vehicle powertrain technology" means equipment
7used to convert electricity for use in aerospace propulsion.
8    "Electric vehicle powertrain technology manufacturer"
9means a new or existing manufacturer that is focused on
10reequipping, expanding or establishing a manufacturing
11facility in Illinois that develops and validates electric
12vehicle powertrain technology for use in aerospace propulsion.
13    "Electric vertical takeoff and landing (eVTOL) aircraft"
14means a fully electric aircraft that lands and takes off
15vertically.
16    "Energy Transition Area" means a county with less than
17100,000 people or a municipality that contains one or more of
18the 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

 

 

10300HB0817ham001- 41 -LRB103 04410 HLH 72543 a

1    operations significantly reduced within 6 years following
2    the time of the application.
3    "Full-time employee" means an individual who is employed
4for consideration for at least 35 hours each week or who
5renders any other standard of service generally accepted by
6industry custom or practice as full-time employment. An
7individual for whom a W-2 is issued by a Professional Employer
8Organization (PEO) is a full-time employee if employed in the
9service of the applicant for consideration for at least 35
10hours each week.
11    "Green steel manufacturer" means an entity that
12manufactures steel without the use of fossil fuels and with
13zero net carbon emission.
14    "Incremental income tax" means the total amount withheld
15during the taxable year from the compensation of new employees
16and, if applicable, retained employees under Article 7 of the
17Illinois Income Tax Act arising from employment at a project
18that is the subject of an agreement.
19    "Institution of higher education" or "institution" means
20any accredited public or private university, college,
21community college, business, technical, or vocational school,
22or other accredited educational institution offering degrees
23and instruction beyond the secondary school level.
24    "Minority person" means a minority person as defined in
25the Business Enterprise for Minorities, Women, and Persons
26with Disabilities Act.

 

 

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1    "New employee" means a newly-hired full-time employee
2employed to work at the project site and whose work is directly
3related to the project.
4    "Noncompliance date" means, in the case of a taxpayer that
5is not complying with the requirements of the agreement or the
6provisions of this Act, the day following the last date upon
7which the taxpayer was in compliance with the requirements of
8the agreement and the provisions of this Act, as determined by
9the Director, pursuant to Section 70.
10    "Pass-through entity" means an entity that is exempt from
11the tax under subsection (b) or (c) of Section 205 of the
12Illinois Income Tax Act.
13    "Placed in service" means the state or condition of
14readiness, availability for a specifically assigned function,
15and the facility is constructed and ready to conduct its
16facility operations to manufacture goods.
17    "Professional employer organization" (PEO) means an
18employee leasing company, as defined in Section 206.1 of the
19Illinois Unemployment Insurance Act.
20    "Program" means the Reimagining Energy and Vehicles in
21Illinois Program (the REV Illinois Program) established in
22this Act.
23    "Project" or "REV Illinois Project" means a for-profit
24economic development activity for the manufacture of electric
25vehicles, electric vehicle component parts, electric vehicle
26power supply equipment, or renewable energy products, which is

 

 

10300HB0817ham001- 43 -LRB103 04410 HLH 72543 a

1designated by the Department as a REV Illinois Project and is
2the subject of an agreement.
3    "Recycling facility" means a location at which the
4taxpayer disposes of batteries and other component parts in
5manufacturing of electric vehicles, electric vehicle component
6parts, or electric vehicle power supply equipment.
7    "Related member" means a person that, with respect to the
8taxpayer during any portion of the taxable year, is any one of
9the 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

 

 

10300HB0817ham001- 44 -LRB103 04410 HLH 72543 a

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
18materials and sources of energy through which renewable energy
19resources are generated.
20    "Renewable energy manufacturer" means a manufacturer whose
21primary function is to manufacture or assemble: (i) equipment,
22systems, or products used to produce renewable or nuclear
23energy; (ii) products used for energy conservation, storage,
24or grid efficiency purposes; or (iii) component parts for that
25equipment or those systems or products.
26    "Renewable energy resources" has the meaning ascribed to

 

 

10300HB0817ham001- 45 -LRB103 04410 HLH 72543 a

1that term in Section 1-10 of the Illinois Power Agency Act.
2    "Research and development" means work directed toward the
3innovation, introduction, and improvement of products and
4processes. "Research and development" includes all levels of
5research and development that directly result in the potential
6manufacturing and marketability of renewable energy, electric
7vehicles, electric vehicle component parts, and electric or
8hybrid aircraft.
9    "Retained employee" means a full-time employee employed by
10the taxpayer prior to the term of the Agreement who continues
11to be employed during the term of the agreement whose job
12duties are directly related to the project. The term "retained
13employee" does not include any individual who has a direct or
14an indirect ownership interest of at least 5% in the profits,
15equity, capital, or value of the taxpayer or a child,
16grandchild, parent, or spouse, other than a spouse who is
17legally separated from the individual, of any individual who
18has a direct or indirect ownership of at least 5% in the
19profits, equity, capital, or value of the taxpayer. The
20changes to this definition of "retained employee" apply to
21agreements for credits under this Act that are entered into on
22or after the effective date of this amendatory Act of the 102nd
23General Assembly.
24    "REV Illinois credit" means a credit agreed to between the
25Department and the applicant under this Act that is based on
26the incremental income tax attributable to new employees and,

 

 

10300HB0817ham001- 46 -LRB103 04410 HLH 72543 a

1if applicable, retained employees, and on training costs for
2such employees at the applicant's project.
3    "REV construction jobs credit" means a credit agreed to
4between the Department and the applicant under this Act that
5is based on the incremental income tax attributable to
6construction wages paid in connection with construction of the
7project facilities.
8    "Statewide baseline" means the total number of full-time
9employees of the applicant and any related member employed by
10such entities at the time of application for incentives under
11this Act.
12    "Taxpayer" means an individual, corporation, partnership,
13or other entity that has a legal obligation to pay Illinois
14income taxes and file an Illinois income tax return.
15    "Training costs" means costs incurred to upgrade the
16technological skills of full-time employees in Illinois and
17includes: curriculum development; training materials
18(including scrap product costs); trainee domestic travel
19expenses; instructor costs (including wages, fringe benefits,
20tuition and domestic travel expenses); rent, purchase or lease
21of training equipment; and other usual and customary training
22costs. "Training costs" do not include costs associated with
23travel outside the United States (unless the Taxpayer receives
24prior written approval for the travel by the Director based on
25a showing of substantial need or other proof the training is
26not reasonably available within the United States), wages and

 

 

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1fringe benefits of employees during periods of training, or
2administrative cost related to full-time employees of the
3taxpayer.
4    "Underserved area" means any geographic area areas as
5defined in Section 5-5 of the Economic Development for a
6Growing Economy Tax Credit Act.
7(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
8102-1112, 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
12Illinois) Program is hereby established and shall be
13administered by the Department. The Program will provide
14financial incentives to any one or more of the following: (1)
15eligible manufacturers of electric vehicles, electric vehicle
16component parts, and electric vehicle power supply equipment;
17(2) battery recycling and reuse manufacturers; (3) battery raw
18materials refining service providers; or (4) renewable energy
19manufacturers.
20    (b) Any taxpayer planning a project to be located in
21Illinois may request consideration for designation of its
22project as a REV Illinois Project, by formal written letter of
23request or by formal application to the Department, in which
24the applicant states its intent to make at least a specified
25level of investment and intends to hire a specified number of

 

 

10300HB0817ham001- 48 -LRB103 04410 HLH 72543 a

1full-time employees at a designated location in Illinois. As
2circumstances require, the Department shall require a formal
3application from an applicant and a formal letter of request
4for assistance.
5    (c) In order to qualify for credits under the REV Illinois
6Program, 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;

 

 

10300HB0817ham001- 49 -LRB103 04410 HLH 72543 a

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

 

 

10300HB0817ham001- 50 -LRB103 04410 HLH 72543 a

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

 

 

10300HB0817ham001- 51 -LRB103 04410 HLH 72543 a

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

 

 

10300HB0817ham001- 52 -LRB103 04410 HLH 72543 a

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

 

 

10300HB0817ham001- 53 -LRB103 04410 HLH 72543 a

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
11creating the full-time employee jobs noted in subsection (c),
12those jobs must have a total compensation equal to or greater
13than 120% of the average wage paid to full-time employees in
14the county where the project is located, as determined by the
15U.S. Bureau of Labor Statistics. For agreements entered into
16on or after April 19, 2022 (the effective date of Public Act
17102-700), for any applicant creating the full-time employee
18jobs noted in subsection (c), those jobs must have a
19compensation equal to or greater than 120% of the average wage
20paid to full-time employees in a similar position within an
21occupational group in the county where the project is located,
22as determined by the Department.
23    (e) For any applicant, within 24 months after being placed
24in service, it must certify to the Department that it is carbon
25neutral or has attained certification under one of more of the
26following 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
11commitment to recruit and hire full-time employee positions at
12the project site. The hiring plan may include a partnership
13with an institution of higher education to provide
14internships, including, but not limited to, internships
15supported by the Clean Jobs Workforce Network Program, or
16full-time permanent employment for students at the project
17site. Additionally, the applicant may create or utilize
18participants from apprenticeship programs that are approved by
19and registered with the United States Department of Labor's
20Bureau of Apprenticeship and Training. The applicant may apply
21for apprenticeship education expense credits in accordance
22with the provisions set forth in 14 Ill. Adm. Code 522. Each
23applicant is required to report annually, on or before April
2415, on the diversity of its workforce in accordance with
25Section 50 of this Act. For existing facilities of applicants
26under paragraph (3) of subsection (b) above, if the taxpayer

 

 

10300HB0817ham001- 55 -LRB103 04410 HLH 72543 a

1expects a reduction in force due to its transition to
2manufacturing electric vehicle, electric vehicle component
3parts, or electric vehicle power supply equipment, the plan
4submitted under this Section must outline the taxpayer's plan
5to assist with retraining its workforce aligned with the
6taxpayer's adoption of new technologies and anticipated
7efforts to retrain employees through employment opportunities
8within the taxpayer's workforce.
9    (g) Each applicant must demonstrate a contractual or other
10relationship with a recycling facility, or demonstrate its own
11recycling capabilities, at the time of application and report
12annually a continuing contractual or other relationship with a
13recycling facility and the percentage of batteries used in
14electric vehicles recycled throughout the term of the
15agreement.
16    (h) A taxpayer may not enter into more than one agreement
17under this Act with respect to a single address or location for
18the same period of time. Also, a taxpayer may not enter into an
19agreement under this Act with respect to a single address or
20location for the same period of time for which the taxpayer
21currently holds an active agreement under the Economic
22Development for a Growing Economy Tax Credit Act. This
23provision does not preclude the applicant from entering into
24an additional agreement after the expiration or voluntary
25termination of an earlier agreement under this Act or under
26the Economic Development for a Growing Economy Tax Credit Act

 

 

10300HB0817ham001- 56 -LRB103 04410 HLH 72543 a

1to the extent that the taxpayer's application otherwise
2satisfies the terms and conditions of this Act and is approved
3by the Department. An applicant with an existing agreement
4under the Economic Development for a Growing Economy Tax
5Credit Act may submit an application for an agreement under
6this Act after it terminates any existing agreement under the
7Economic Development for a Growing Economy Tax Credit Act with
8respect to the same address or location. If a project that is
9subject to an existing agreement under the Economic
10Development for a Growing Economy Tax Credit Act meets the
11requirements to be designated as a REV Illinois project under
12this Act, including for actions undertaken prior to the
13effective date of this Act, the taxpayer that is subject to
14that existing agreement under the Economic Development for a
15Growing Economy Tax Credit Act may apply to the Department to
16amend the agreement to allow the project to become a
17designated REV Illinois project. Following the amendment, time
18accrued during which the project was eligible for credits
19under the existing agreement under the Economic Development
20for a Growing Economy Tax Credit Act shall count toward the
21duration of the credit subject to limitations described in
22Section 40 of this Act.
23    (i) If, at any time following the designation of a project
24as a REV Illinois Project by the Department and prior to the
25termination or expiration of an agreement under this Act, the
26project ceases to qualify as a REV Illinois project because

 

 

10300HB0817ham001- 57 -LRB103 04410 HLH 72543 a

1the taxpayer is no longer an electric vehicle manufacturer, an
2electric vehicle component manufacturer, an electric vehicle
3power supply equipment manufacturer, a battery recycling and
4reuse manufacturer, or a battery raw materials refining
5service provider, or an entity engaged in eVTOL or hybrid
6electric or fully electric propulsion systems for airliners
7research, development, or manufacturing, that project may
8receive tax credit awards as described in Section 5-15 and
9Section 5-51 of the Economic Development for a Growing Economy
10Tax Credit Act, as long as the project continues to meet
11requirements to obtain those credits as described in the
12Economic Development for a Growing Economy Tax Credit Act and
13remains compliant with terms contained in the Agreement under
14this Act not related to their status as an electric vehicle
15manufacturer, an electric vehicle component manufacturer, an
16electric vehicle power supply equipment manufacturer, a
17battery recycling and reuse manufacturer, or a battery raw
18materials refining service provider, or an entity engaged in
19eVTOL or hybrid-electric or fully electric propulsion systems
20for airliners research, development, or manufacturing. Time
21accrued during which the project was eligible for credits
22under an agreement under this Act shall count toward the
23duration of the credit subject to limitations described in
24Section 5-45 of the Economic Development for a Growing Economy
25Tax Credit Act.
26(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;

 

 

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1102-1112, eff. 12-21-22; 102-1125, eff. 2-3-23; 103-9, eff.
26-7-23.)
 
3    (20 ILCS 686/35)
4    Sec. 35. Relocation of jobs in Illinois. A taxpayer is not
5entitled to claim a credit provided by this Act with respect to
6any jobs that the Taxpayer relocates from one site in Illinois
7to another site in Illinois unless the taxpayer has agreed to
8hire the minimum number of new employees and the Department
9has determined that the expansion cannot reasonably be
10accommodated within the municipality in which the business is
11located. Any full-time employee relocated to Illinois in
12connection with a qualifying project is deemed to be a new
13employee for purposes of this Act. Determinations under this
14Section 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
19applicant that is awarded a credit under this Act. The
20agreement 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

 

 

10300HB0817ham001- 59 -LRB103 04410 HLH 72543 a

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.

 

 

10300HB0817ham001- 60 -LRB103 04410 HLH 72543 a

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
22each agreement entered into under this Act. Such information
23shall be posted within 10 days after entering into the
24agreement 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;
8103-9, 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
12subcontractor that is engaged in construction work on project
13facilities for a taxpayer who seeks to apply for a REV
14Construction Jobs credit shall annually, until construction is
15completed, submit a report that, at a minimum, describes the
16projected project scope, timeline, and anticipated budget.
17Once the project has commenced, the annual report shall
18include actual data for the prior year as well as projections
19for each additional year through completion of the project.
20The Department shall issue detailed reporting guidelines
21prescribing the requirements of construction related reports. :
22    In order to receive credit for construction expenses, the
23company must provide the Department of Commerce and Economic
24Opportunity with evidence that a certified third-party
25executed an Agreed-Upon Procedure (AUP) verifying the

 

 

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1construction expenses or accept the standard construction wage
2expense estimated by the Department of Commerce and Economic
3Opportunity.
4    Upon review of the final project scope, timeline, budget,
5and AUP, the Department shall issue a tax credit certificate
6reflecting a percentage of the total construction job wages
7paid 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
24certified payroll of a lower-tier subcontractor, provided the
25general contractor does not knowingly rely upon a
26subcontractor's false certification.

 

 

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1    (b) (Blank). Any contractor or subcontractor subject to
2this Section, and any officer, employee, or agent of such
3contractor or subcontractor whose duty as an officer,
4employee, or agent it is to file a certified payroll under this
5Section, who willfully fails to file such a certified payroll,
6on or before the date such certified payroll is required to be
7filed and any person who willfully files a false certified
8payroll as to any material fact is in violation of this Act and
9guilty of a Class A misdemeanor and may be enforced by the
10Illinois Department of Labor or the Department. The Attorney
11General shall represented the Illinois Department of Labor or
12the Department in the proceeding.
13    (c) (Blank). The taxpayer in charge of the project shall
14keep the records submitted in accordance with this Section for
15a period of 5 years from the date of the last payment for work
16on a contract or subcontract for the project.
17    (d) (Blank). The records submitted in accordance with this
18Section shall be considered public records, except an
19employee's address, telephone number, and social security
20number, which shall be redacted. The records shall be made
21publicly available in accordance with the Freedom of
22Information Act. The contractor or subcontractor shall submit
23reports to the Department of Labor electronically that meet
24the requirements of this subsection and shall share the
25information with the Department to comply with the awarding of
26the REV Construction Jobs Credit. A contractor, subcontractor,

 

 

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1or public body may retain records required under this Section
2in paper or electronic format.
3    (e) Upon 7 business days' notice, the taxpayer contractor
4and each subcontractor shall make available to any State
5agency and to federal, State, or local law enforcement
6agencies and prosecutors for inspection and copying at a
7location within this State during reasonable hours, the report
8described in subsection (a) records identified in paragraph
9(1) of this subsection to the Taxpayer in charge of the
10Project, its officers and agents, the Director of the
11Department of Labor and his/her deputies and agents, and to
12federal, State, or local law enforcement agencies and
13prosecutors.
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
17sites. The Department may certify a taxpayer with a REV
18Illinois credit for a Project that meets the qualifications
19under Section paragraphs (1), (2), and (4), (4.1), or (5) of
20subsection (c) of Section 20, subject to an agreement under
21this Act for an exemption from the tax imposed at the project
22site by Section 2-4 of the Electricity Excise Tax Law. To
23receive such certification, the taxpayer must be registered to
24self-assess that tax. The taxpayer is also exempt from any
25additional charges added to the taxpayer's utility bills at

 

 

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1the project site as a pass-on of State utility taxes under
2Section 9-222 of the Public Utilities Act. The taxpayer must
3meet any other the criteria for certification set by the
4Department.
5    The Department shall determine the period during which the
6exemption from the Electricity Excise Tax Law and the charges
7imposed under Section 9-222 of the Public Utilities Act are in
8effect, which shall not exceed 30 10 years or the life of the
9agreement, whichever is less, from the date of the taxpayer's
10initial receipt of certification from the Department under
11this Section.
12    The Department is authorized to adopt rules to carry out
13the provisions of this Section, including procedures to apply
14for the exemptions; to define the amounts and types of
15eligible investments that an applicant must make in order to
16receive electricity excise tax exemptions or exemptions from
17the additional charges imposed under Section 9-222 and the
18Public Utilities Act; to approve such electricity excise tax
19exemptions for applicants whose investments are not yet placed
20in service; and to require that an applicant granted an
21electricity excise tax exemption or an exemption from
22additional charges under Section 9-222 of the Public Utilities
23Act repay the exempted amount if the Applicant fails to comply
24with the terms and conditions of the agreement.
25    Upon certification by the Department under this Section,
26the Department shall notify the Department of Revenue of the

 

 

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1certification. The Department of Revenue shall notify the
2public utilities of the exempt status of any taxpayer
3certified for exemption under this Act from the electricity
4excise tax or pass-on charges. The exemption status shall take
5effect within 3 months after certification of the taxpayer and
6notice 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
10Project sites.
11    (a) The Department may certify a Taxpayer with a REV
12Illinois Project that meets the qualifications under
13paragraphs (1), (2), or (4), (4.1), or (5) of subsection (c) of
14Section 20, subject to an agreement under this Act, for an
15exemption from any State or local use tax or retailers'
16occupation tax on building materials for the construction of
17its project facilities. The taxpayer must meet any criteria
18for certification set by the Department under this Act.
19    The Department shall determine the period during which the
20exemption from State and local use tax and retailers'
21occupation tax are in effect, but in no event shall exceed 5
22years in accordance with Section 5m of the Retailers'
23Occupation Tax Act.
24    The Department is authorized to promulgate rules and
25regulations to carry out the provisions of this Section,

 

 

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1including procedures to apply for the exemption; to define the
2amounts and types of eligible investments that an applicant
3must make in order to receive tax exemption; to approve such
4tax exemption for an applicant whose investments are not yet
5placed in service; and to require that an applicant granted
6exemption repay the exempted amount if the applicant fails to
7comply with the terms and conditions of the agreement with the
8Department.
9    Upon certification by the Department under this Section,
10the Department shall notify the Department of Revenue of the
11certification. The exemption status shall take effect within 3
12months after certification of the taxpayer and notice to the
13Department 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
16adding Section 241 as follows:
 
17    (35 ILCS 5/241 new)
18    Sec. 241. Credit for quantum computing campus enterprise
19zones.
20    (a) A taxpayer who has been awarded a credit by the
21Department of Commerce and Economic Opportunity under Section
22605-115 of the Department of Commerce and Economic Opportunity
23Law of the Civil Administrative Code of Illinois is entitled
24to a credit against the taxes imposed under subsections (a)

 

 

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1and (b) of Section 201 of this Act. The amount of the credit
2shall be 20% of the wages paid by the taxpayer during the
3taxable year to a full-time or part-time employee of a
4construction contractor employed in the construction of an
5eligible facility located on a quantum computing campus
6enterprise zone designated under Section 605-115 of the
7Department of Commerce and Economic Opportunity Law of the
8Civil Administrative Code of Illinois.
9    (b) In no event shall a credit under this Section reduce
10the taxpayer's liability to less than zero. If the amount of
11the credit exceeds the tax liability for the year, the excess
12may be carried forward and applied to the tax liability of the
135 taxable years following the excess credit year. The tax
14credit shall be applied to the earliest year for which there is
15a tax liability. If there are credits for more than one year
16that are available to offset a liability, the earlier credit
17shall be applied first.
18    (c) As used in this Section, "eligible facility" means a
19building used primarily to house one or more of the following:
20a quantum computer operator; a research facility; a data
21center; a manufacturer and assembler of quantum computers and
22component parts; a cryogenic or refrigeration facility; or any
23other facility determined, by industry and academic leaders,
24to be fundamental to the research and development of quantum
25computing for practical solutions.
26    (d) This Section is exempt from the provisions of Section

 

 

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1250.
 
2    Section 25. The Economic Development for a Growing Economy
3Tax Credit Act is amended by changing Sections 5-5, 5-15,
45-20, 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
8Department under the provisions of Section 5-50 of this Act.
9    "Applicant" means a Taxpayer that is operating a business
10located or that the Taxpayer plans to locate within the State
11of Illinois and that is engaged in interstate or intrastate
12commerce for the purpose of manufacturing, processing,
13assembling, warehousing, or distributing products, conducting
14research and development, providing tourism services, or
15providing services in interstate commerce, office industries,
16or agricultural processing, but excluding retail, retail food,
17health, or professional services, and services delivered to
18business customer sites. "Applicant" does not include a
19Taxpayer who closes or substantially reduces an operation at
20one location in the State and relocates substantially the same
21operation to another location in the State. This does not
22prohibit a Taxpayer from expanding its operations at another
23location in the State, provided that existing operations of a
24similar nature located within the State are not closed or

 

 

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1substantially reduced. This also does not prohibit a Taxpayer
2from moving its operations from one location in the State to
3another location in the State for the purpose of expanding the
4operation provided that the Department determines that
5expansion cannot reasonably be accommodated within the
6municipality in which the business is located, or in the case
7of a business located in an incorporated area of the county,
8within the county in which the business is located, after
9conferring with the chief elected official of the municipality
10or county and taking into consideration any evidence offered
11by the municipality or county regarding the ability to
12accommodate expansion within the municipality or county.
13    "Credit" means the amount agreed to between the Department
14and Applicant under this Act, but not to exceed the lesser of:
15(1) the sum of (i) 50% of the Incremental Income Tax
16attributable to New Employees at the Applicant's project and
17(ii) 10% of the training costs of New Employees; or (2) 100% of
18the Incremental Income Tax attributable to New Employees at
19the Applicant's project. However, if the project is located in
20an underserved area, then the amount of the Credit may not
21exceed the lesser of: (1) the sum of (i) 75% of the Incremental
22Income Tax attributable to New Employees at the Applicant's
23project and (ii) 10% of the training costs of New Employees; or
24(2) 100% of the Incremental Income Tax attributable to New
25Employees at the Applicant's project. If the project is not
26located in an underserved area and the Applicant agrees to

 

 

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1hire the required number of New Employees, then the maximum
2amount of the Credit for that Applicant may be increased by an
3amount not to exceed 25% of the Incremental Income Tax
4attributable to retained employees at the Applicant's project.
5If the project is located in an underserved area and the
6Applicant agrees to hire the required number of New Employees,
7then the maximum amount of the credit for that Applicant may be
8increased by an amount not to exceed 50% of the Incremental
9Income Tax attributable to retained employees at the
10Applicant's project.
11    "Department" means the Department of Commerce and Economic
12Opportunity.
13    "Director" means the Director of Commerce and Economic
14Opportunity.
15    "Full-time Employee" means an individual who is employed
16for consideration for at least 35 hours each week or who
17renders any other standard of service generally accepted by
18industry custom or practice as full-time employment. An
19individual for whom a W-2 is issued by a Professional Employer
20Organization (PEO) is a full-time employee if employed in the
21service of the Applicant for consideration for at least 35
22hours each week or who renders any other standard of service
23generally accepted by industry custom or practice as full-time
24employment to Applicant. The employee need not be physically
25present at the EDGE project location during the entire
26full-time workweek; however, the agreement shall set forth a

 

 

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1minimum number of hours during which the employee is scheduled
2to be present at the EDGE project location.
3    "Incremental Income Tax" means the total amount withheld
4during the taxable year from the compensation of New Employees
5and, if applicable, retained employees under Article 7 of the
6Illinois Income Tax Act arising from employment at a project
7that is the subject of an Agreement.
8    "New Construction EDGE Agreement" means the Agreement
9between a Taxpayer and the Department under the provisions of
10Section 5-51 of this Act.
11    "New Construction EDGE Credit" means an amount agreed to
12between the Department and the Applicant under this Act as
13part of a New Construction EDGE Agreement that does not exceed
1450% of the Incremental Income Tax attributable to New
15Construction EDGE Employees at the Applicant's project;
16however, if the New Construction EDGE Project is located in an
17underserved area, then the amount of the New Construction EDGE
18Credit may not exceed 75% of the Incremental Income Tax
19attributable to New Construction EDGE Employees at the
20Applicant's New Construction EDGE Project.
21    "New Construction EDGE Employee" means a laborer or worker
22who is employed by a an Illinois contractor or subcontractor
23in the actual construction work on the site of a New
24Construction EDGE Project, pursuant to a New Construction EDGE
25Agreement.
26    "New Construction EDGE Incremental Income Tax" means the

 

 

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1total amount withheld during the taxable year from the
2compensation of New Construction EDGE Employees.
3    "New Construction EDGE Project" means the building of a
4Taxpayer's structure or building, or making improvements of
5any kind to real property. "New Construction EDGE Project"
6does not include the routine operation, routine repair, or
7routine maintenance of existing structures, buildings, or real
8property.
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
23is not complying with the requirements of the Agreement or the
24provisions of this Act, the day following the last date upon
25which the Taxpayer was in compliance with the requirements of
26the Agreement and the provisions of this Act, as determined by

 

 

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1the Director, pursuant to Section 5-65.
2    "Pass Through Entity" means an entity that is exempt from
3the tax under subsection (b) or (c) of Section 205 of the
4Illinois Income Tax Act.
5    "Professional Employer Organization" (PEO) means an
6employee leasing company, as defined in Section 206.1(A)(2) of
7the Illinois Unemployment Insurance Act.
8    "Related Member" means a person that, with respect to the
9Taxpayer during any portion of the taxable year, is any one of
10the 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
20before the effective date of the changes made to this Section
21by this amendatory Act of the 103rd General Assembly, a
22corporation, partnership, or other entity incorporated or
23organized no more than 5 years before the filing of an
24application for an Agreement that has never had any Illinois
25income tax liability, excluding any Illinois income tax
26liability of a Related Member which shall not be attributed to

 

 

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1the startup taxpayer. "Startup taxpayer" means, for Agreements
2that are executed on or after the effective date of this
3amendatory Act of the 103rd General Assembly, a corporation,
4partnership, or other entity that is incorporated or organized
5no more than 10 years before the filing of an application for
6an Agreement and that has never had any Illinois income tax
7liability. For the purpose of determining whether the taxpayer
8has had any Illinois income tax liability, the Illinois income
9tax liability of a Related Member shall not be attributed to
10the startup taxpayer.
11    "Taxpayer" means an individual, corporation, partnership,
12or other entity that has any Illinois Income Tax liability.
13    Until July 1, 2022, "underserved area" means a geographic
14area 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
4geographic area that meets one or more of the following
5conditions:
6        (1) the area has a poverty rate of at least 20%
7    according to the latest 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;
21102-1125, 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
24set forth in this Act, a Taxpayer is entitled to a Credit
25against or, as described in subsection (g) of this Section, a

 

 

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1payment towards taxes imposed pursuant to subsections (a) and
2(b) of Section 201 of the Illinois Income Tax Act that may be
3imposed on the Taxpayer for a taxable year beginning on or
4after January 1, 1999, if the Taxpayer is awarded a Credit by
5the Department under this Act for that taxable year.
6    (a) The Department shall make Credit awards under this Act
7to foster job creation and retention in Illinois.
8    (b) A person that proposes a project to create new jobs in
9Illinois must enter into an Agreement with the Department for
10the Credit under this Act.
11    (c) The Credit shall be claimed for the taxable years
12specified in the Agreement.
13    (d) The Credit shall not exceed the Incremental Income Tax
14attributable to the project that is the subject of the
15Agreement.
16    (e) Nothing herein shall prohibit a Tax Credit Award to an
17Applicant that uses a PEO if all other award criteria are
18satisfied.
19    (f) In lieu of the Credit allowed under this Act against
20the taxes imposed pursuant to subsections (a) and (b) of
21Section 201 of the Illinois Income Tax Act for any taxable year
22ending on or after December 31, 2009, for Taxpayers that
23entered into Agreements prior to January 1, 2015 and otherwise
24meet the criteria set forth in this subsection (f), the
25Taxpayer may elect to claim the Credit against its obligation
26to pay over withholding under Section 704A of the Illinois

 

 

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1Income 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
26under this Act, its shareholders, or its partners may treat

 

 

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

 

 

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1    (b) In order to qualify for Credits under this Act, an
2Applicant'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
13enter into an Agreement with the Applicant if the application
14is 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
18not entitled to claim the credit provided by this Act with
19respect to any jobs that the taxpayer relocates from one site
20in Illinois unless the taxpayer has agreed to hire the minimum
21number of new employees and the Department has determined that
22the expansion cannot reasonably be accommodated within the
23municipality in which the business is located to another site
24in Illinois. A taxpayer with respect to a qualifying project
25certified under the Corporate Headquarters Relocation Act,

 

 

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1however, is not subject to the requirements of this Section
2but is nevertheless considered an applicant for purposes of
3this Act. Moreover, any full-time employee of an eligible
4business relocated to Illinois in connection with that
5qualifying project is deemed to be a new employee for purposes
6of this Act. Determinations under this Section shall be made
7by 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
12of the credit awarded under this Act. The duration of the
13credit may not exceed 10 taxable years for projects qualified
14under paragraph (1), (1.5), or (1.6) of subsection (b) of
15Section 5-20 or 15 taxable years for projects qualified under
16paragraph (1.7) of subsection (b) of Section 5-20. The credit
17may be stated as a percentage of the Incremental Income Tax
18attributable to the applicant's project and may include a
19fixed dollar limitation.
20    (b) Notwithstanding subsection (a), and except as the
21credit may be applied in a carryover year pursuant to Section
22211(4) of the Illinois Income Tax Act, the credit may be
23applied against the State income tax liability in more than 10
24taxable years but not in more than 15 taxable years for an
25eligible business that (i) qualifies under this Act and the

 

 

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1Corporate Headquarters Relocation Act and has in fact
2undertaken a qualifying project within the time frame
3specified by the Department of Commerce and Economic
4Opportunity under that Act, and (ii) applies against its State
5income tax liability, during the entire 15-year period, no
6more than 60% of the maximum credit per year that would
7otherwise be available under this Act.
8    (c) Nothing in this Section shall prevent the Department,
9in consultation with the Department of Revenue, from adopting
10rules to extend the sunset of any earned, existing, and unused
11tax credit or credits a taxpayer may be in possession of, as
12provided for in Section 605-1070 of the Department of Commerce
13and Economic Opportunity Law of the Civil Administrative Code
14of Illinois, notwithstanding the carry-forward provisions
15pursuant to paragraph (4) of Section 211 of the Illinois
16Income 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,
20until construction is completed, a company seeking New
21Construction EDGE Credits shall submit a report that, at a
22minimum, describes the projected project scope, timeline, and
23anticipated budget. Once the project has commenced, the annual
24report shall include actual data for the prior year as well as
25projections for each additional year through completion of the

 

 

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1project. The Department shall issue detailed reporting
2guidelines prescribing the requirements of construction
3related reports. In order to receive credit for construction
4expenses, the company must provide the Department of Commerce
5and Economic Opportunity with evidence that a certified
6third-party executed an Agreed-Upon Procedure (AUP) verifying
7the construction expenses or accept the standard construction
8wage expense estimated by the Department of Commerce and
9Economic Opportunity.
10    Upon review of the final project scope, timeline, budget,
11and AUP, the Department shall issue a tax credit certificate
12reflecting a percentage of the total construction job wages
13paid throughout the completion of the project.
14Each contractor and subcontractor that is engaged in and is
15executing a New Construction EDGE Project for a Taxpayer,
16pursuant 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
7certified payroll of a lower-tier subcontractor, provided the
8general contractor does not knowingly rely upon a
9subcontractor's false certification.
10    Any contractor or subcontractor subject to this Section,
11and any officer, employee, or agent of such contractor or
12subcontractor whose duty as an officer, employee, or agent it
13is to file a certified payroll under this Section, who
14willfully fails to file such a certified payroll on or before
15the date such certified payroll is required to be filed and any
16person who willfully files a false certified payroll that is
17false as to any material fact is in violation of this Act and
18guilty of a Class A misdemeanor.
19    The taxpayer in charge of the project shall keep the
20records submitted in accordance with this Section on or after
21June 5, 2019 (the effective date of Public Act 101-9) for a
22period of 5 years from the date of the last payment for work on
23a contract or subcontract for the project.
24    The records submitted in accordance with this Section
25shall be considered public records, except an employee's
26address, telephone number, and social security number, and

 

 

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1made available in accordance with the Freedom of Information
2Act. The Department of Labor shall accept any reasonable
3submissions by the contractor that meet the requirements of
4this Section and shall share the information with the
5Department in order to comply with the awarding of New
6Construction EDGE Credits. A contractor, subcontractor, or
7public body may retain records required under this Section in
8paper or electronic format.
9    Upon 7 business days' notice, the taxpayer contractor and
10each subcontractor shall make available for inspection and
11copying at a location within this State during reasonable
12hours, the records identified in paragraph (1) of this Section
13to the taxpayer in charge of the project, its officers and
14agents, the Director of Labor and his or her deputies and
15agents, and to federal, State, or local law enforcement
16agencies 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
19Opportunity (MICRO) Act is amended by changing Sections
20110-10, 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
24Department under the provisions of this Act.

 

 

10300HB0817ham001- 99 -LRB103 04410 HLH 72543 a

1    "Applicant" means a taxpayer that: (i) operates a business
2in Illinois as a semiconductor manufacturer, a microchip
3manufacturer, or a manufacturer of semiconductor or microchip
4component parts, or focuses on research and development and
5innovation in the space of semiconductor manufacturing,
6microchip manufacturing, and the manufacturing of
7semiconductor or microchip component parts; or (ii) is
8planning to locate a business within the State of Illinois as a
9semiconductor manufacturer, a microchip manufacturer, or a
10manufacturer of semiconductor or microchip component parts, or
11focuses on research and development and innovation in the
12space of semiconductor manufacturing, microchip manufacturing,
13and the manufacturing of semiconductor or microchip component
14parts. "Applicant" does not include a taxpayer who closes or
15substantially reduces by more than 50% operations at one
16location in the State and relocates substantially the same
17operation to another location in the State. This does not
18prohibit a taxpayer from expanding its operations at another
19location in the State. This also does not prohibit a taxpayer
20from moving its operations from one location in the State to
21another location in the State for the purpose of expanding the
22operation, provided that the Department determines that
23expansion cannot reasonably be accommodated within the
24municipality or county in which the business is located, or,
25in the case of a business located in an incorporated area of
26the county, within the county in which the business is

 

 

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1located, after conferring with the chief elected official of
2the municipality or county and taking into consideration any
3evidence offered by the municipality or county regarding the
4ability to accommodate expansion within the municipality or
5county.
6    "Capital improvements" means the purchase, renovation,
7rehabilitation, or construction of permanent tangible land,
8buildings, structures, equipment, and furnishings in an
9approved project sited in Illinois and expenditures for goods
10or services that are normally capitalized, including
11organizational costs and research and development costs
12incurred in Illinois. For land, buildings, structures, and
13equipment that are leased, the lease must equal or exceed the
14term of the agreement, and the cost of the property shall be
15determined from the present value, using the corporate
16interest rate prevailing at the time of the application, of
17the lease payments.
18    "Credit" or "MICRO credit" means a credit agreed to
19between the Department and applicant under this Act.
20    "Department" means the Department of Commerce and Economic
21Opportunity.
22    "Director" means the Director of Commerce and Economic
23Opportunity.
24    "Energy Transition Area" means a county with less than
25100,000 people or a municipality that contains one or more of
26the 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
12for consideration for at least 35 hours each week or who
13renders any other standard of service generally accepted by
14industry custom or practice as full-time employment. An
15individual for whom a W-2 is issued by a Professional Employer
16Organization (PEO) is a full-time employee if employed in the
17service of the applicant for consideration for at least 35
18hours each week.
19    "Incremental income tax" means the total amount withheld
20during the taxable year from the compensation of new employees
21and, if applicable, retained employees under Article 7 of the
22Illinois Income Tax Act arising from employment at a project
23that is the subject of an agreement.
24    "Institution of higher education" or "institution" means
25any accredited public or private university, college,
26community college, business, technical, or vocational school,

 

 

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1or other accredited educational institution offering degrees
2and instruction beyond the secondary school level.
3    "MICRO construction jobs credit" means a credit agreed to
4between the Department and the applicant under this Act that
5is based on the incremental income tax attributable to
6construction wages paid in connection with construction of the
7project facilities.
8    "MICRO credit" means a credit agreed to between the
9Department and the applicant under this Act that is based on
10the incremental income tax attributable to new employees and,
11if applicable, retained employees, and on training costs for
12such employees at the applicant's project.
13    "Microchip" means a wafer of semiconducting material that
14is less than 15 millimeters long and less than 5 millimeters
15wide and is used to make an integrated circuit.
16    "Microchip manufacturer" means a new or existing
17manufacturer that is focused on reequipping, expanding, or
18establishing a manufacturing facility in Illinois that
19produces microchips or key components that directly support
20the functions of microchips.
21    "Minority person" means a minority person as defined in
22the Business Enterprise for Minorities, Women, and Persons
23with Disabilities Act.
24    "New employee" means a newly-hired full-time employee
25employed to work at the project site and whose work is directly
26related to the project.

 

 

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1    "Noncompliance date" means, in the case of a taxpayer that
2is not complying with the requirements of the agreement or the
3provisions of this Act, the day following the last date upon
4which the taxpayer was in compliance with the requirements of
5the agreement and the provisions of this Act, as determined by
6the Director.
7    "Pass-through entity" means an entity that is exempt from
8the tax under subsection (b) or (c) of Section 205 of the
9Illinois Income Tax Act.
10    "Placed in service" means the state or condition of
11readiness, availability for a specifically assigned function,
12and the facility is constructed and ready to conduct its
13facility operations to manufacture goods.
14    "Professional employer organization" (PEO) means an
15employee leasing company, as defined in Section 206.1 of the
16Illinois Unemployment Insurance Act.
17    "Program" means the Manufacturing Illinois Chips for Real
18Opportunity (MICRO) program established in this Act.
19    "Project" means a for-profit economic development activity
20for the manufacture of semiconductors and microchips.
21    "Related member" means a person that, with respect to the
22taxpayer during any portion of the taxable year, is any one of
23the 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
6innovation, introduction, and improvement of products and
7processes in the space of semiconductor manufacturing,
8microchip manufacturing, and the manufacturing of
9semiconductor or microchip component parts.
10    "Retained employee" means a full-time employee employed by
11the taxpayer prior to the term of the agreement who continues
12to be employed during the term of the agreement whose job
13duties are directly and substantially related to the project.
14For purposes of this definition, "directly and substantially
15related to the project" means at least two-thirds of the
16employee's job duties must be directly related to the project
17and the employee must devote at least two-thirds of his or her
18time to the project. The term "retained employee" does not
19include any individual who has a direct or an indirect
20ownership interest of at least 5% in the profits, equity,
21capital, or value of the taxpayer or a child, grandchild,
22parent, or spouse, other than a spouse who is legally
23separated from the individual, of any individual who has a
24direct or indirect ownership of at least 5% in the profits,
25equity, capital, or value of the taxpayer.
26    "Semiconductor" means any class of crystalline solids

 

 

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1intermediate in electrical conductivity between a conductor
2and an insulator.
3    "Semiconductor manufacturer" means a new or existing
4manufacturer that is focused on reequipping, expanding, or
5establishing a manufacturing facility in Illinois that
6produces semiconductors or key components that directly
7support the functions of semiconductors. Semiconductor
8manufacturing also includes the manufacturing of component
9parts that are required for the development and operation of
10quantum computers and quantum computing facilities.
11    "Statewide baseline" means the total number of full-time
12employees of the applicant and any related member employed by
13such entities at the time of application for incentives under
14this Act.
15    "Taxpayer" means an individual, corporation, partnership,
16or other entity that has a legal obligation to pay Illinois
17income taxes and file an Illinois income tax return.
18    "Training costs" means costs incurred to upgrade the
19technological skills of full-time employees in Illinois and
20includes: curriculum development; training materials
21(including scrap product costs); trainee domestic travel
22expenses; instructor costs (including wages, fringe benefits,
23tuition and domestic travel expenses); rent, purchase or lease
24of training equipment; and other usual and customary training
25costs. "Training costs" do not include costs associated with
26travel outside the United States (unless the taxpayer receives

 

 

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1prior written approval for the travel by the Director based on
2a showing of substantial need or other proof the training is
3not reasonably available within the United States), wages and
4fringe benefits of employees during periods of training, or
5administrative cost related to full-time employees of the
6taxpayer.
7    "Underserved area" means any geographic area areas as
8defined in Section 5-5 of the Economic Development for a
9Growing 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
13Opportunity (MICRO) Program; project applications.
14    (a) The Manufacturing Illinois Chips for Real Opportunity
15(MICRO) Program is hereby established and shall be
16administered by the Department. The Program will provide
17financial incentives to eligible semiconductor manufacturers,
18and microchip manufacturers, and companies focusing on
19research and development and innovation in the space of
20semiconductor manufacturing, microchip manufacturing, and the
21manufacturing of semiconductor or microchip component parts.
22    (b) Any taxpayer planning a project to be located in
23Illinois may request consideration for designation of its
24project as a MICRO project, by formal written letter of
25request or by formal application to the Department, in which

 

 

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1the applicant states its intent to make at least a specified
2level of investment and intends to hire a specified number of
3full-time employees at a designated location in Illinois. As
4circumstances require, the Department shall require a formal
5application from an applicant and a formal letter of request
6for assistance.
7    (c) In order to qualify for credits under the program, an
8applicant 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
14noted in subsection (c), those jobs must have a total
15compensation equal to or greater than 120% of the average wage
16paid to full-time employees in the county where the project is
17located, as determined by the Department.
18    (e) Each applicant must outline its hiring plan and
19commitment to recruit and hire full-time employee positions at
20the project site. The hiring plan may include a partnership
21with an institution of higher education to provide
22internships, including, but not limited to, internships
23supported by the Clean Jobs Workforce Network Program, or
24full-time permanent employment for students at the project
25site. Additionally, the applicant may create or utilize
26participants from apprenticeship programs that are approved by

 

 

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1and registered with the United States Department of Labor's
2Bureau of Apprenticeship and Training. The Applicant may apply
3for apprenticeship education expense credits in accordance
4with the provisions set forth in 14 Ill. Admin. Code 522. Each
5applicant is required to report annually, on or before April
615, on the diversity of its workforce in accordance with
7Section 110-50 of this Act. For existing facilities of
8applicants under paragraph (3) of subsection (b) above, if the
9taxpayer expects a reduction in force due to its transition to
10manufacturing semiconductors, microchips, or semiconductor or
11microchip component parts, the plan submitted under this
12Section must outline the taxpayer's plan to assist with
13retraining its workforce aligned with the taxpayer's adoption
14of new technologies and anticipated efforts to retrain
15employees through employment opportunities within the
16taxpayer's workforce.
17    (f) A taxpayer may not enter into more than one agreement
18under this Act with respect to a single address or location for
19the same period of time. Also, a taxpayer may not enter into an
20agreement under this Act with respect to a single address or
21location for the same period of time for which the taxpayer
22currently holds an active agreement under the Economic
23Development for a Growing Economy Tax Credit Act. This
24provision does not preclude the applicant from entering into
25an additional agreement after the expiration or voluntary
26termination of an earlier agreement under this Act or under

 

 

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1the Economic Development for a Growing Economy Tax Credit Act
2to the extent that the taxpayer's application otherwise
3satisfies the terms and conditions of this Act and is approved
4by the Department. An applicant with an existing agreement
5under the Economic Development for a Growing Economy Tax
6Credit Act may submit an application for an agreement under
7this Act after it terminates any existing agreement under the
8Economic Development for a Growing Economy Tax Credit Act with
9respect 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
13not entitled to claim a credit provided by this Act with
14respect to any jobs that the taxpayer relocates from one site
15in Illinois to another site in Illinois unless the taxpayer
16has agreed to hire the minimum number of new employees and the
17Department has determined that the expansion cannot reasonably
18be accommodated within the municipality in which the business
19is located. Any full-time employee relocated to Illinois in
20connection with a qualifying project is deemed to be a new
21employee for purposes of this Act. Determinations under this
22Section 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
3seeking MICRO Construction Job Credits shall submit a report
4that, at a minimum, describes the projected project scope,
5timeline, and anticipated budget. Once the project has
6commenced, the annual report shall include actual data for the
7prior year as well as projections for each additional year
8through completion of the project. The Department shall issue
9detailed reporting guidelines prescribing the requirements of
10construction-related reports. Each contractor and
11subcontractor that is engaged in construction work on project
12facilities for a taxpayer who seeks to apply for a MICRO
13Construction 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
4certified payroll of a lower-tier subcontractor, provided the
5general contractor does not knowingly rely upon a
6subcontractor's false certification.
7    (b) In order to receive credit for construction expenses,
8the company must provide the Department of Commerce and
9Economic Opportunity with evidence that a certified third
10party executed an Agreed-Upon Procedure (AUP) verifying the
11construction expenses or accept the standard construction wage
12expense estimated by the Department of Commerce and Economic
13Opportunity. Any contractor or subcontractor subject to this
14Section, and any officer, employee, or agent of such
15contractor or subcontractor whose duty as an officer,
16employee, or agent it is to file a certified payroll under this
17Section, who willfully fails to file such a certified payroll,
18on or before the date such certified payroll is required to be
19filed and any person who willfully files a false certified
20payroll as to any material fact is in violation of this Act and
21guilty of a Class A misdemeanor and may be enforced by the
22Illinois Department of Labor or the Department. The Attorney
23General shall represented the Illinois Department of Labor or
24the Department in the proceeding.
25    (c) Upon review of the final project scope, timeline,
26budget, and AUP, the Department shall issue a tax credit

 

 

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1certificate reflecting a percentage of the total construction
2job wages paid throughout the completion of the project. The
3taxpayer in charge of the project shall keep the records
4submitted in accordance with this Section for a period of 5
5years from the date of the last payment for work on a contract
6or subcontract for the project.
7    (d) (Blank). The records submitted in accordance with this
8Section shall be considered public records, except an
9employee's address, telephone number, and social security
10number, which shall be redacted. The records shall be made
11publicly available in accordance with the Freedom of
12Information Act. The contractor or subcontractor shall submit
13reports to the Department of Labor electronically that meet
14the requirements of this subsection and shall share the
15information with the Department to comply with the awarding of
16the MICRO Construction Jobs Credit. A contractor,
17subcontractor, or public body may retain records required
18under this Section in paper or electronic format.
19    (e) Upon 7 business days' notice, the taxpayer contractor
20and each subcontractor shall make available to each State
21agency and to federal, State, or local law enforcement
22agencies and prosecutors for inspection and copying at a
23location within this State during reasonable hours, the report
24described in subsection (a) records identified in paragraph
25(1) of this subsection to the taxpayer in charge of the
26Project, its officers and agents, the Director of the

 

 

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1Department of Labor and his/her deputies and agents, and to
2federal, State, or local law enforcement agencies and
3prosecutors.
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.
7The Department may certify a taxpayer with a credit for a
8project that meets the qualifications under paragraphs (1),
9(2), and (4) of subsection (c) of Section 110-20, subject to an
10agreement under this Act, for an exemption from the tax
11imposed at the project site by Section 2-4 of the Electricity
12Excise Tax Law. To receive such certification, the taxpayer
13must be registered to self-assess that tax. The taxpayer is
14also exempt from any additional charges added to the
15taxpayer's utility bills at the project site as a pass-on of
16State utility taxes under Section 9-222 of the Public
17Utilities Act. The taxpayer must meet any other the criteria
18for certification set by the Department.
19    The Department shall determine the period during which the
20exemption from the Electricity Excise Tax Law and the charges
21imposed under Section 9-222 of the Public Utilities Act are in
22effect, which shall not exceed 30 10 years or the life of the
23agreement, whichever is lesser, from the date of the
24taxpayer's initial receipt of certification from the
25Department under this Section.

 

 

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1    The Department is authorized to adopt rules to carry out
2the provisions of this Section, including procedures to apply
3for the exemptions; to define the amounts and types of
4eligible investments that an applicant must make in order to
5receive electricity excise tax exemptions or exemptions from
6the additional charges imposed under Section 9-222 and the
7Public Utilities Act; to approve such electricity excise tax
8exemptions for applicants whose investments are not yet placed
9in service; and to require that an applicant granted an
10electricity excise tax exemption or an exemption from
11additional charges under Section 9-222 of the Public Utilities
12Act repay the exempted amount if the applicant fails to comply
13with the terms and conditions of the agreement.
14    Upon certification by the Department under this Section,
15the Department shall notify the Department of Revenue of the
16certification. The Department of Revenue shall notify the
17public utilities of the exempt status of any taxpayer
18certified for exemption under this Act from the electricity
19excise tax or pass-on charges. The exemption status shall take
20effect within 3 months after certification of the taxpayer and
21notice 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
243-5 as follows:
 

 

 

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1    (35 ILCS 105/3-5)
2    Sec. 3-5. Exemptions. Use of the following tangible
3personal property is exempt from the tax imposed by this Act:
4    (1) Personal property purchased from a corporation,
5society, association, foundation, institution, or
6organization, other than a limited liability company, that is
7organized and operated as a not-for-profit service enterprise
8for the benefit of persons 65 years of age or older if the
9personal property was not purchased by the enterprise for the
10purpose of resale by the enterprise.
11    (2) Personal property purchased by a not-for-profit
12Illinois county fair association for use in conducting,
13operating, or promoting the county fair.
14    (3) Personal property purchased by a not-for-profit arts
15or cultural organization that establishes, by proof required
16by the Department by rule, that it has received an exemption
17under Section 501(c)(3) of the Internal Revenue Code and that
18is organized and operated primarily for the presentation or
19support of arts or cultural programming, activities, or
20services. These organizations include, but are not limited to,
21music and dramatic arts organizations such as symphony
22orchestras and theatrical groups, arts and cultural service
23organizations, local arts councils, visual arts organizations,
24and media arts organizations. On and after July 1, 2001 (the
25effective date of Public Act 92-35), however, an entity
26otherwise eligible for this exemption shall not make tax-free

 

 

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1purchases unless it has an active identification number issued
2by the Department.
3    (4) Except as otherwise provided in this Act, personal
4property purchased by a governmental body, by a corporation,
5society, association, foundation, or institution organized and
6operated exclusively for charitable, religious, or educational
7purposes, or by a not-for-profit corporation, society,
8association, foundation, institution, or organization that has
9no compensated officers or employees and that is organized and
10operated primarily for the recreation of persons 55 years of
11age or older. A limited liability company may qualify for the
12exemption under this paragraph only if the limited liability
13company is organized and operated exclusively for educational
14purposes. On and after July 1, 1987, however, no entity
15otherwise eligible for this exemption shall make tax-free
16purchases unless it has an active exemption identification
17number issued by the Department.
18    (5) Until July 1, 2003, a passenger car that is a
19replacement vehicle to the extent that the purchase price of
20the car is subject to the Replacement Vehicle Tax.
21    (6) Until July 1, 2003 and beginning again on September 1,
222004 through August 30, 2014, graphic arts machinery and
23equipment, including repair and replacement parts, both new
24and used, and including that manufactured on special order,
25certified by the purchaser to be used primarily for graphic
26arts production, and including machinery and equipment

 

 

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1purchased for lease. Equipment includes chemicals or chemicals
2acting as catalysts but only if the chemicals or chemicals
3acting as catalysts effect a direct and immediate change upon
4a graphic arts product. Beginning on July 1, 2017, graphic
5arts machinery and equipment is included in the manufacturing
6and assembling machinery and equipment exemption under
7paragraph (18).
8    (7) Farm chemicals.
9    (8) Legal tender, currency, medallions, or gold or silver
10coinage issued by the State of Illinois, the government of the
11United States of America, or the government of any foreign
12country, and bullion.
13    (9) Personal property purchased from a teacher-sponsored
14student organization affiliated with an elementary or
15secondary school located in Illinois.
16    (10) A motor vehicle that is used for automobile renting,
17as defined in the Automobile Renting Occupation and Use Tax
18Act.
19    (11) Farm machinery and equipment, both new and used,
20including that manufactured on special order, certified by the
21purchaser to be used primarily for production agriculture or
22State or federal agricultural programs, including individual
23replacement parts for the machinery and equipment, including
24machinery and equipment purchased for lease, and including
25implements of husbandry defined in Section 1-130 of the
26Illinois Vehicle Code, farm machinery and agricultural

 

 

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1chemical and fertilizer spreaders, and nurse wagons required
2to be registered under Section 3-809 of the Illinois Vehicle
3Code, but excluding other motor vehicles required to be
4registered under the Illinois Vehicle Code. Horticultural
5polyhouses or hoop houses used for propagating, growing, or
6overwintering plants shall be considered farm machinery and
7equipment under this item (11). Agricultural chemical tender
8tanks and dry boxes shall include units sold separately from a
9motor vehicle required to be licensed and units sold mounted
10on a motor vehicle required to be licensed if the selling price
11of the tender is separately stated.
12    Farm machinery and equipment shall include precision
13farming equipment that is installed or purchased to be
14installed on farm machinery and equipment, including, but not
15limited to, tractors, harvesters, sprayers, planters, seeders,
16or spreaders. Precision farming equipment includes, but is not
17limited to, soil testing sensors, computers, monitors,
18software, global positioning and mapping systems, and other
19such equipment.
20    Farm machinery and equipment also includes computers,
21sensors, software, and related equipment used primarily in the
22computer-assisted operation of production agriculture
23facilities, equipment, and activities such as, but not limited
24to, the collection, monitoring, and correlation of animal and
25crop data for the purpose of formulating animal diets and
26agricultural chemicals.

 

 

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1    Beginning on January 1, 2024, farm machinery and equipment
2also includes electrical power generation equipment used
3primarily for production agriculture.
4    This item (11) is exempt from the provisions of Section
53-90.
6    (12) Until June 30, 2013, fuel and petroleum products sold
7to or used by an air common carrier, certified by the carrier
8to be used for consumption, shipment, or storage in the
9conduct of its business as an air common carrier, for a flight
10destined for or returning from a location or locations outside
11the United States without regard to previous or subsequent
12domestic stopovers.
13    Beginning July 1, 2013, fuel and petroleum products sold
14to or used by an air carrier, certified by the carrier to be
15used for consumption, shipment, or storage in the conduct of
16its business as an air common carrier, for a flight that (i) is
17engaged in foreign trade or is engaged in trade between the
18United States and any of its possessions and (ii) transports
19at least one individual or package for hire from the city of
20origination to the city of final destination on the same
21aircraft, without regard to a change in the flight number of
22that aircraft.
23    (13) Proceeds of mandatory service charges separately
24stated on customers' bills for the purchase and consumption of
25food and beverages purchased at retail from a retailer, to the
26extent that the proceeds of the service charge are in fact

 

 

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1turned over as tips or as a substitute for tips to the
2employees who participate directly in preparing, serving,
3hosting or cleaning up the food or beverage function with
4respect to which the service charge is imposed.
5    (14) Until July 1, 2003, oil field exploration, drilling,
6and production equipment, including (i) rigs and parts of
7rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
8pipe and tubular goods, including casing and drill strings,
9(iii) pumps and pump-jack units, (iv) storage tanks and flow
10lines, (v) any individual replacement part for oil field
11exploration, drilling, and production equipment, and (vi)
12machinery and equipment purchased for lease; but excluding
13motor vehicles required to be registered under the Illinois
14Vehicle Code.
15    (15) Photoprocessing machinery and equipment, including
16repair and replacement parts, both new and used, including
17that manufactured on special order, certified by the purchaser
18to be used primarily for photoprocessing, and including
19photoprocessing machinery and equipment purchased for lease.
20    (16) Until July 1, 2028, coal and aggregate exploration,
21mining, off-highway hauling, processing, maintenance, and
22reclamation equipment, including replacement parts and
23equipment, and including equipment purchased for lease, but
24excluding motor vehicles required to be registered under the
25Illinois Vehicle Code. The changes made to this Section by
26Public Act 97-767 apply on and after July 1, 2003, but no claim

 

 

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1for credit or refund is allowed on or after August 16, 2013
2(the effective date of Public Act 98-456) for such taxes paid
3during the period beginning July 1, 2003 and ending on August
416, 2013 (the effective date of Public Act 98-456).
5    (17) Until July 1, 2003, distillation machinery and
6equipment, sold as a unit or kit, assembled or installed by the
7retailer, certified by the user to be used only for the
8production of ethyl alcohol that will be used for consumption
9as motor fuel or as a component of motor fuel for the personal
10use of the user, and not subject to sale or resale.
11    (18) Manufacturing and assembling machinery and equipment
12used primarily in the process of manufacturing or assembling
13tangible personal property for wholesale or retail sale or
14lease, whether that sale or lease is made directly by the
15manufacturer or by some other person, whether the materials
16used in the process are owned by the manufacturer or some other
17person, or whether that sale or lease is made apart from or as
18an incident to the seller's engaging in the service occupation
19of producing machines, tools, dies, jigs, patterns, gauges, or
20other similar items of no commercial value on special order
21for a particular purchaser. The exemption provided by this
22paragraph (18) includes production related tangible personal
23property, as defined in Section 3-50, purchased on or after
24July 1, 2019. The exemption provided by this paragraph (18)
25does not include machinery and equipment used in (i) the
26generation of electricity for wholesale or retail sale; (ii)

 

 

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1the generation or treatment of natural or artificial gas for
2wholesale or retail sale that is delivered to customers
3through pipes, pipelines, or mains; or (iii) the treatment of
4water for wholesale or retail sale that is delivered to
5customers through pipes, pipelines, or mains. The provisions
6of Public Act 98-583 are declaratory of existing law as to the
7meaning and scope of this exemption. Beginning on July 1,
82017, the exemption provided by this paragraph (18) includes,
9but is not limited to, graphic arts machinery and equipment,
10as defined in paragraph (6) of this Section.
11    (19) Personal property delivered to a purchaser or
12purchaser's donee inside Illinois when the purchase order for
13that personal property was received by a florist located
14outside Illinois who has a florist located inside Illinois
15deliver the personal property.
16    (20) Semen used for artificial insemination of livestock
17for direct agricultural production.
18    (21) Horses, or interests in horses, registered with and
19meeting the requirements of any of the Arabian Horse Club
20Registry of America, Appaloosa Horse Club, American Quarter
21Horse Association, United States Trotting Association, or
22Jockey Club, as appropriate, used for purposes of breeding or
23racing for prizes. This item (21) is exempt from the
24provisions of Section 3-90, and the exemption provided for
25under this item (21) applies for all periods beginning May 30,
261995, but no claim for credit or refund is allowed on or after

 

 

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1January 1, 2008 for such taxes paid during the period
2beginning May 30, 2000 and ending on January 1, 2008.
3    (22) Computers and communications equipment utilized for
4any hospital purpose and equipment used in the diagnosis,
5analysis, or treatment of hospital patients purchased by a
6lessor who leases the equipment, under a lease of one year or
7longer executed or in effect at the time the lessor would
8otherwise be subject to the tax imposed by this Act, to a
9hospital that has been issued an active tax exemption
10identification number by the Department under Section 1g of
11the Retailers' Occupation Tax Act. If the equipment is leased
12in a manner that does not qualify for this exemption or is used
13in any other non-exempt manner, the lessor shall be liable for
14the tax imposed under this Act or the Service Use Tax Act, as
15the case may be, based on the fair market value of the property
16at the time the non-qualifying use occurs. No lessor shall
17collect or attempt to collect an amount (however designated)
18that purports to reimburse that lessor for the tax imposed by
19this Act or the Service Use Tax Act, as the case may be, if the
20tax has not been paid by the lessor. If a lessor improperly
21collects any such amount from the lessee, the lessee shall
22have a legal right to claim a refund of that amount from the
23lessor. If, however, that amount is not refunded to the lessee
24for any reason, the lessor is liable to pay that amount to the
25Department.
26    (23) Personal property purchased by a lessor who leases

 

 

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1the property, under a lease of one year or longer executed or
2in effect at the time the lessor would otherwise be subject to
3the tax imposed by this Act, to a governmental body that has
4been issued an active sales tax exemption identification
5number by the Department under Section 1g of the Retailers'
6Occupation Tax Act. If the property is leased in a manner that
7does not qualify for this exemption or used in any other
8non-exempt manner, the lessor shall be liable for the tax
9imposed under this Act or the Service Use Tax Act, as the case
10may be, based on the fair market value of the property at the
11time the non-qualifying use occurs. No lessor shall collect or
12attempt to collect an amount (however designated) that
13purports to reimburse that lessor for the tax imposed by this
14Act or the Service Use Tax Act, as the case may be, if the tax
15has not been paid by the lessor. If a lessor improperly
16collects any such amount from the lessee, the lessee shall
17have a legal right to claim a refund of that amount from the
18lessor. If, however, that amount is not refunded to the lessee
19for any reason, the lessor is liable to pay that amount to the
20Department.
21    (24) Beginning with taxable years ending on or after
22December 31, 1995 and ending with taxable years ending on or
23before December 31, 2004, personal property that is donated
24for disaster relief to be used in a State or federally declared
25disaster area in Illinois or bordering Illinois by a
26manufacturer or retailer that is registered in this State to a

 

 

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1corporation, society, association, foundation, or institution
2that has been issued a sales tax exemption identification
3number by the Department that assists victims of the disaster
4who reside within the declared disaster area.
5    (25) Beginning with taxable years ending on or after
6December 31, 1995 and ending with taxable years ending on or
7before December 31, 2004, personal property that is used in
8the performance of infrastructure repairs in this State,
9including, but not limited to, municipal roads and streets,
10access roads, bridges, sidewalks, waste disposal systems,
11water and sewer line extensions, water distribution and
12purification facilities, storm water drainage and retention
13facilities, and sewage treatment facilities, resulting from a
14State or federally declared disaster in Illinois or bordering
15Illinois when such repairs are initiated on facilities located
16in the declared disaster area within 6 months after the
17disaster.
18    (26) Beginning July 1, 1999, game or game birds purchased
19at a "game breeding and hunting preserve area" as that term is
20used in the Wildlife Code. This paragraph is exempt from the
21provisions of Section 3-90.
22    (27) A motor vehicle, as that term is defined in Section
231-146 of the Illinois Vehicle Code, that is donated to a
24corporation, limited liability company, society, association,
25foundation, or institution that is determined by the
26Department to be organized and operated exclusively for

 

 

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1educational purposes. For purposes of this exemption, "a
2corporation, limited liability company, society, association,
3foundation, or institution organized and operated exclusively
4for educational purposes" means all tax-supported public
5schools, private schools that offer systematic instruction in
6useful branches of learning by methods common to public
7schools and that compare favorably in their scope and
8intensity with the course of study presented in tax-supported
9schools, and vocational or technical schools or institutes
10organized and operated exclusively to provide a course of
11study of not less than 6 weeks duration and designed to prepare
12individuals to follow a trade or to pursue a manual,
13technical, mechanical, industrial, business, or commercial
14occupation.
15    (28) Beginning January 1, 2000, personal property,
16including food, purchased through fundraising events for the
17benefit of a public or private elementary or secondary school,
18a group of those schools, or one or more school districts if
19the events are sponsored by an entity recognized by the school
20district that consists primarily of volunteers and includes
21parents and teachers of the school children. This paragraph
22does not apply to fundraising events (i) for the benefit of
23private home instruction or (ii) for which the fundraising
24entity purchases the personal property sold at the events from
25another individual or entity that sold the property for the
26purpose of resale by the fundraising entity and that profits

 

 

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1from the sale to the fundraising entity. This paragraph is
2exempt from the provisions of Section 3-90.
3    (29) Beginning January 1, 2000 and through December 31,
42001, new or used automatic vending machines that prepare and
5serve hot food and beverages, including coffee, soup, and
6other items, and replacement parts for these machines.
7Beginning January 1, 2002 and through June 30, 2003, machines
8and parts for machines used in commercial, coin-operated
9amusement and vending business if a use or occupation tax is
10paid on the gross receipts derived from the use of the
11commercial, coin-operated amusement and vending machines. This
12paragraph is exempt from the provisions of Section 3-90.
13    (30) Beginning January 1, 2001 and through June 30, 2016,
14food for human consumption that is to be consumed off the
15premises where it is sold (other than alcoholic beverages,
16soft drinks, and food that has been prepared for immediate
17consumption) and prescription and nonprescription medicines,
18drugs, medical appliances, and insulin, urine testing
19materials, syringes, and needles used by diabetics, for human
20use, when purchased for use by a person receiving medical
21assistance under Article V of the Illinois Public Aid Code who
22resides in a licensed long-term care facility, as defined in
23the Nursing Home Care Act, or in a licensed facility as defined
24in the ID/DD Community Care Act, the MC/DD Act, or the
25Specialized Mental Health Rehabilitation Act of 2013.
26    (31) Beginning on August 2, 2001 (the effective date of

 

 

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1Public Act 92-227), computers and communications equipment
2utilized for any hospital purpose and equipment used in the
3diagnosis, analysis, or treatment of hospital patients
4purchased by a lessor who leases the equipment, under a lease
5of one year or longer executed or in effect at the time the
6lessor would otherwise be subject to the tax imposed by this
7Act, to a hospital that has been issued an active tax exemption
8identification number by the Department under Section 1g of
9the Retailers' Occupation Tax Act. If the equipment is leased
10in a manner that does not qualify for this exemption or is used
11in any other nonexempt manner, the lessor shall be liable for
12the tax imposed under this Act or the Service Use Tax Act, as
13the case may be, based on the fair market value of the property
14at the time the nonqualifying use occurs. No lessor shall
15collect or attempt to collect an amount (however designated)
16that purports to reimburse that lessor for the tax imposed by
17this Act or the Service Use Tax Act, as the case may be, if the
18tax has not been paid by the lessor. If a lessor improperly
19collects any such amount from the lessee, the lessee shall
20have a legal right to claim a refund of that amount from the
21lessor. If, however, that amount is not refunded to the lessee
22for any reason, the lessor is liable to pay that amount to the
23Department. This paragraph is exempt from the provisions of
24Section 3-90.
25    (32) Beginning on August 2, 2001 (the effective date of
26Public Act 92-227), personal property purchased by a lessor

 

 

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1who leases the property, under a lease of one year or longer
2executed or in effect at the time the lessor would otherwise be
3subject to the tax imposed by this Act, to a governmental body
4that has been issued an active sales tax exemption
5identification number by the Department under Section 1g of
6the Retailers' Occupation Tax Act. If the property is leased
7in a manner that does not qualify for this exemption or used in
8any other nonexempt manner, the lessor shall be liable for the
9tax imposed under this Act or the Service Use Tax Act, as the
10case may be, based on the fair market value of the property at
11the time the nonqualifying use occurs. No lessor shall collect
12or attempt to collect an amount (however designated) that
13purports to reimburse that lessor for the tax imposed by this
14Act or the Service Use Tax Act, as the case may be, if the tax
15has not been paid by the lessor. If a lessor improperly
16collects any such amount from the lessee, the lessee shall
17have a legal right to claim a refund of that amount from the
18lessor. If, however, that amount is not refunded to the lessee
19for any reason, the lessor is liable to pay that amount to the
20Department. This paragraph is exempt from the provisions of
21Section 3-90.
22    (33) On and after July 1, 2003 and through June 30, 2004,
23the use in this State of motor vehicles of the second division
24with a gross vehicle weight in excess of 8,000 pounds and that
25are subject to the commercial distribution fee imposed under
26Section 3-815.1 of the Illinois Vehicle Code. Beginning on

 

 

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1July 1, 2004 and through June 30, 2005, the use in this State
2of motor vehicles of the second division: (i) with a gross
3vehicle weight rating in excess of 8,000 pounds; (ii) that are
4subject to the commercial distribution fee imposed under
5Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
6are primarily used for commercial purposes. Through June 30,
72005, this exemption applies to repair and replacement parts
8added after the initial purchase of such a motor vehicle if
9that motor vehicle is used in a manner that would qualify for
10the rolling stock exemption otherwise provided for in this
11Act. For purposes of this paragraph, the term "used for
12commercial purposes" means the transportation of persons or
13property in furtherance of any commercial or industrial
14enterprise, whether for-hire or not.
15    (34) Beginning January 1, 2008, tangible personal property
16used in the construction or maintenance of a community water
17supply, as defined under Section 3.145 of the Environmental
18Protection Act, that is operated by a not-for-profit
19corporation that holds a valid water supply permit issued
20under Title IV of the Environmental Protection Act. This
21paragraph is exempt from the provisions of Section 3-90.
22    (35) Beginning January 1, 2010 and continuing through
23December 31, 2029, materials, parts, equipment, components,
24and furnishings incorporated into or upon an aircraft as part
25of the modification, refurbishment, completion, replacement,
26repair, or maintenance of the aircraft. This exemption

 

 

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1includes consumable supplies used in the modification,
2refurbishment, completion, replacement, repair, and
3maintenance of aircraft. However, until January 1, 2024, this
4exemption excludes any materials, parts, equipment,
5components, and consumable supplies used in the modification,
6replacement, repair, and maintenance of aircraft engines or
7power plants, whether such engines or power plants are
8installed or uninstalled upon any such aircraft. "Consumable
9supplies" include, but are not limited to, adhesive, tape,
10sandpaper, general purpose lubricants, cleaning solution,
11latex gloves, and protective films.
12    Beginning January 1, 2010 and continuing through December
1331, 2023, this exemption applies only to the use of qualifying
14tangible personal property by persons who modify, refurbish,
15complete, repair, replace, or maintain aircraft and who (i)
16hold an Air Agency Certificate and are empowered to operate an
17approved repair station by the Federal Aviation
18Administration, (ii) have a Class IV Rating, and (iii) conduct
19operations in accordance with Part 145 of the Federal Aviation
20Regulations. From January 1, 2024 through December 31, 2029,
21this exemption applies only to the use of qualifying tangible
22personal property by: (A) persons who modify, refurbish,
23complete, repair, replace, or maintain aircraft and who (i)
24hold an Air Agency Certificate and are empowered to operate an
25approved repair station by the Federal Aviation
26Administration, (ii) have a Class IV Rating, and (iii) conduct

 

 

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1operations in accordance with Part 145 of the Federal Aviation
2Regulations; and (B) persons who engage in the modification,
3replacement, repair, and maintenance of aircraft engines or
4power plants without regard to whether or not those persons
5meet the qualifications of item (A).
6    The exemption does not include aircraft operated by a
7commercial air carrier providing scheduled passenger air
8service pursuant to authority issued under Part 121 or Part
9129 of the Federal Aviation Regulations. The changes made to
10this paragraph (35) by Public Act 98-534 are declarative of
11existing law. It is the intent of the General Assembly that the
12exemption under this paragraph (35) applies continuously from
13January 1, 2010 through December 31, 2024; however, no claim
14for credit or refund is allowed for taxes paid as a result of
15the disallowance of this exemption on or after January 1, 2015
16and prior to February 5, 2020 (the effective date of Public Act
17101-629).
18    (36) Tangible personal property purchased by a
19public-facilities corporation, as described in Section
2011-65-10 of the Illinois Municipal Code, for purposes of
21constructing or furnishing a municipal convention hall, but
22only if the legal title to the municipal convention hall is
23transferred to the municipality without any further
24consideration by or on behalf of the municipality at the time
25of the completion of the municipal convention hall or upon the
26retirement or redemption of any bonds or other debt

 

 

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1instruments issued by the public-facilities corporation in
2connection with the development of the municipal convention
3hall. This exemption includes existing public-facilities
4corporations as provided in Section 11-65-25 of the Illinois
5Municipal Code. This paragraph is exempt from the provisions
6of Section 3-90.
7    (37) Beginning January 1, 2017 and through December 31,
82026, menstrual pads, tampons, and menstrual cups.
9    (38) Merchandise that is subject to the Rental Purchase
10Agreement Occupation and Use Tax. The purchaser must certify
11that the item is purchased to be rented subject to a
12rental-purchase rental purchase agreement, as defined in the
13Rental-Purchase Rental Purchase Agreement Act, and provide
14proof of registration under the Rental Purchase Agreement
15Occupation and Use Tax Act. This paragraph is exempt from the
16provisions of Section 3-90.
17    (39) Tangible personal property purchased by a purchaser
18who is exempt from the tax imposed by this Act by operation of
19federal law. This paragraph is exempt from the provisions of
20Section 3-90.
21    (40) Qualified tangible personal property used in the
22construction or operation of a data center that has been
23granted a certificate of exemption by the Department of
24Commerce and Economic Opportunity, whether that tangible
25personal property is purchased by the owner, operator, or
26tenant of the data center or by a contractor or subcontractor

 

 

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1of the owner, operator, or tenant. Data centers that would
2have qualified for a certificate of exemption prior to January
31, 2020 had Public Act 101-31 been in effect may apply for and
4obtain an exemption for subsequent purchases of computer
5equipment or enabling software purchased or leased to upgrade,
6supplement, or replace computer equipment or enabling software
7purchased or leased in the original investment that would have
8qualified.
9    The Department of Commerce and Economic Opportunity shall
10grant a certificate of exemption under this item (40) to
11qualified data centers as defined by Section 605-1025 of the
12Department of Commerce and Economic Opportunity Law of the
13Civil 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
213-90.
22    (41) Beginning July 1, 2022, breast pumps, breast pump
23collection and storage supplies, and breast pump kits. This
24item (41) is exempt from the provisions of Section 3-90. As
25used 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
13the State Treasurer pursuant to the Revised Uniform Unclaimed
14Property Act. This item (42) is exempt from the provisions of
15Section 3-90.
16    (43) Beginning on January 1, 2024, tangible personal
17property purchased by an active duty member of the armed
18forces of the United States who presents valid military
19identification and purchases the property using a form of
20payment where the federal government is the payor. The member
21of the armed forces must complete, at the point of sale, a form
22prescribed by the Department of Revenue documenting that the
23transaction is eligible for the exemption under this
24paragraph. Retailers must keep the form as documentation of
25the exemption in their records for a period of not less than 6
26years. "Armed forces of the United States" means the United

 

 

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1States Army, Navy, Air Force, Marine Corps, or Coast Guard.
2This paragraph is exempt from the provisions of Section 3-90.
3    (44) Tangible personal property to be used or consumed
4within a quantum computing campus enterprise zone designated
5by the Department of Commerce and Economic Opportunity under
6Section 605-1115 of the Department of Commerce and Economic
7Opportunity Law of the Civil Administrative Code of Illinois.
8This paragraph is exempt from the provisions of Section 3-90.
9(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
10Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
11eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
12Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
13eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
14revised 12-12-23.)
 
15    Section 40. The Service Use Tax Act is amended by changing
16Section 3-5 as follows:
 
17    (35 ILCS 110/3-5)
18    Sec. 3-5. Exemptions. Use of the following tangible
19personal property is exempt from the tax imposed by this Act:
20    (1) Personal property purchased from a corporation,
21society, association, foundation, institution, or
22organization, other than a limited liability company, that is
23organized and operated as a not-for-profit service enterprise
24for the benefit of persons 65 years of age or older if the

 

 

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1personal property was not purchased by the enterprise for the
2purpose of resale by the enterprise.
3    (2) Personal property purchased by a non-profit Illinois
4county fair association for use in conducting, operating, or
5promoting the county fair.
6    (3) Personal property purchased by a not-for-profit arts
7or cultural organization that establishes, by proof required
8by the Department by rule, that it has received an exemption
9under Section 501(c)(3) of the Internal Revenue Code and that
10is organized and operated primarily for the presentation or
11support of arts or cultural programming, activities, or
12services. These organizations include, but are not limited to,
13music and dramatic arts organizations such as symphony
14orchestras and theatrical groups, arts and cultural service
15organizations, local arts councils, visual arts organizations,
16and media arts organizations. On and after July 1, 2001 (the
17effective date of Public Act 92-35), however, an entity
18otherwise eligible for this exemption shall not make tax-free
19purchases unless it has an active identification number issued
20by the Department.
21    (4) Legal tender, currency, medallions, or gold or silver
22coinage issued by the State of Illinois, the government of the
23United States of America, or the government of any foreign
24country, and bullion.
25    (5) Until July 1, 2003 and beginning again on September 1,
262004 through August 30, 2014, graphic arts machinery and

 

 

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1equipment, including repair and replacement parts, both new
2and used, and including that manufactured on special order or
3purchased for lease, certified by the purchaser to be used
4primarily for graphic arts production. Equipment includes
5chemicals or chemicals acting as catalysts but only if the
6chemicals or chemicals acting as catalysts effect a direct and
7immediate change upon a graphic arts product. Beginning on
8July 1, 2017, graphic arts machinery and equipment is included
9in the manufacturing and assembling machinery and equipment
10exemption under Section 2 of this Act.
11    (6) Personal property purchased from a teacher-sponsored
12student organization affiliated with an elementary or
13secondary school located in Illinois.
14    (7) Farm machinery and equipment, both new and used,
15including that manufactured on special order, certified by the
16purchaser to be used primarily for production agriculture or
17State or federal agricultural programs, including individual
18replacement parts for the machinery and equipment, including
19machinery and equipment purchased for lease, and including
20implements of husbandry defined in Section 1-130 of the
21Illinois Vehicle Code, farm machinery and agricultural
22chemical and fertilizer spreaders, and nurse wagons required
23to be registered under Section 3-809 of the Illinois Vehicle
24Code, but excluding other motor vehicles required to be
25registered under the Illinois Vehicle Code. Horticultural
26polyhouses or hoop houses used for propagating, growing, or

 

 

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1overwintering plants shall be considered farm machinery and
2equipment under this item (7). Agricultural chemical tender
3tanks and dry boxes shall include units sold separately from a
4motor vehicle required to be licensed and units sold mounted
5on a motor vehicle required to be licensed if the selling price
6of the tender is separately stated.
7    Farm machinery and equipment shall include precision
8farming equipment that is installed or purchased to be
9installed on farm machinery and equipment, including, but not
10limited to, tractors, harvesters, sprayers, planters, seeders,
11or spreaders. Precision farming equipment includes, but is not
12limited to, soil testing sensors, computers, monitors,
13software, global positioning and mapping systems, and other
14such equipment.
15    Farm machinery and equipment also includes computers,
16sensors, software, and related equipment used primarily in the
17computer-assisted operation of production agriculture
18facilities, equipment, and activities such as, but not limited
19to, the collection, monitoring, and correlation of animal and
20crop data for the purpose of formulating animal diets and
21agricultural chemicals.
22    Beginning on January 1, 2024, farm machinery and equipment
23also includes electrical power generation equipment used
24primarily for production agriculture.
25    This item (7) is exempt from the provisions of Section
263-75.

 

 

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1    (8) Until June 30, 2013, fuel and petroleum products sold
2to or used by an air common carrier, certified by the carrier
3to be used for consumption, shipment, or storage in the
4conduct of its business as an air common carrier, for a flight
5destined for or returning from a location or locations outside
6the United States without regard to previous or subsequent
7domestic stopovers.
8    Beginning July 1, 2013, fuel and petroleum products sold
9to or used by an air carrier, certified by the carrier to be
10used for consumption, shipment, or storage in the conduct of
11its business as an air common carrier, for a flight that (i) is
12engaged in foreign trade or is engaged in trade between the
13United States and any of its possessions and (ii) transports
14at least one individual or package for hire from the city of
15origination to the city of final destination on the same
16aircraft, without regard to a change in the flight number of
17that aircraft.
18    (9) Proceeds of mandatory service charges separately
19stated on customers' bills for the purchase and consumption of
20food and beverages acquired as an incident to the purchase of a
21service from a serviceman, to the extent that the proceeds of
22the service charge are in fact turned over as tips or as a
23substitute for tips to the employees who participate directly
24in preparing, serving, hosting or cleaning up the food or
25beverage function with respect to which the service charge is
26imposed.

 

 

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1    (10) Until July 1, 2003, oil field exploration, drilling,
2and production equipment, including (i) rigs and parts of
3rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
4pipe and tubular goods, including casing and drill strings,
5(iii) pumps and pump-jack units, (iv) storage tanks and flow
6lines, (v) any individual replacement part for oil field
7exploration, drilling, and production equipment, and (vi)
8machinery and equipment purchased for lease; but excluding
9motor vehicles required to be registered under the Illinois
10Vehicle Code.
11    (11) Proceeds from the sale of photoprocessing machinery
12and equipment, including repair and replacement parts, both
13new and used, including that manufactured on special order,
14certified by the purchaser to be used primarily for
15photoprocessing, and including photoprocessing machinery and
16equipment purchased for lease.
17    (12) Until July 1, 2028, coal and aggregate exploration,
18mining, off-highway hauling, processing, maintenance, and
19reclamation equipment, including replacement parts and
20equipment, and including equipment purchased for lease, but
21excluding motor vehicles required to be registered under the
22Illinois Vehicle Code. The changes made to this Section by
23Public Act 97-767 apply on and after July 1, 2003, but no claim
24for credit or refund is allowed on or after August 16, 2013
25(the effective date of Public Act 98-456) for such taxes paid
26during the period beginning July 1, 2003 and ending on August

 

 

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116, 2013 (the effective date of Public Act 98-456).
2    (13) Semen used for artificial insemination of livestock
3for direct agricultural production.
4    (14) Horses, or interests in horses, registered with and
5meeting the requirements of any of the Arabian Horse Club
6Registry of America, Appaloosa Horse Club, American Quarter
7Horse Association, United States Trotting Association, or
8Jockey Club, as appropriate, used for purposes of breeding or
9racing for prizes. This item (14) is exempt from the
10provisions of Section 3-75, and the exemption provided for
11under this item (14) applies for all periods beginning May 30,
121995, but no claim for credit or refund is allowed on or after
13January 1, 2008 (the effective date of Public Act 95-88) for
14such taxes paid during the period beginning May 30, 2000 and
15ending on January 1, 2008 (the effective date of Public Act
1695-88).
17    (15) Computers and communications equipment utilized for
18any hospital purpose and equipment used in the diagnosis,
19analysis, or treatment of hospital patients purchased by a
20lessor who leases the equipment, under a lease of one year or
21longer executed or in effect at the time the lessor would
22otherwise be subject to the tax imposed by this Act, to a
23hospital that has been issued an active tax exemption
24identification number by the Department under Section 1g of
25the Retailers' Occupation Tax Act. If the equipment is leased
26in a manner that does not qualify for this exemption or is used

 

 

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1in any other non-exempt manner, the lessor shall be liable for
2the tax imposed under this Act or the Use Tax Act, as the case
3may be, based on the fair market value of the property at the
4time the non-qualifying use occurs. No lessor shall collect or
5attempt to collect an amount (however designated) that
6purports to reimburse that lessor for the tax imposed by this
7Act or the Use Tax Act, as the case may be, if the tax has not
8been paid by the lessor. If a lessor improperly collects any
9such amount from the lessee, the lessee shall have a legal
10right to claim a refund of that amount from the lessor. If,
11however, that amount is not refunded to the lessee for any
12reason, the lessor is liable to pay that amount to the
13Department.
14    (16) Personal property purchased by a lessor who leases
15the property, under a lease of one year or longer executed or
16in effect at the time the lessor would otherwise be subject to
17the tax imposed by this Act, to a governmental body that has
18been issued an active tax exemption identification number by
19the Department under Section 1g of the Retailers' Occupation
20Tax Act. If the property is leased in a manner that does not
21qualify for this exemption or is used in any other non-exempt
22manner, the lessor shall be liable for the tax imposed under
23this Act or the Use Tax Act, as the case may be, based on the
24fair market value of the property at the time the
25non-qualifying use occurs. No lessor shall collect or attempt
26to collect an amount (however designated) that purports to

 

 

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1reimburse that lessor for the tax imposed by this Act or the
2Use Tax Act, as the case may be, if the tax has not been paid
3by the lessor. If a lessor improperly collects any such amount
4from the lessee, the lessee shall have a legal right to claim a
5refund of that amount from the lessor. If, however, that
6amount is not refunded to the lessee for any reason, the lessor
7is liable to pay that amount to the Department.
8    (17) Beginning with taxable years ending on or after
9December 31, 1995 and ending with taxable years ending on or
10before December 31, 2004, personal property that is donated
11for disaster relief to be used in a State or federally declared
12disaster area in Illinois or bordering Illinois by a
13manufacturer or retailer that is registered in this State to a
14corporation, society, association, foundation, or institution
15that has been issued a sales tax exemption identification
16number by the Department that assists victims of the disaster
17who reside within the declared disaster area.
18    (18) Beginning with taxable years ending on or after
19December 31, 1995 and ending with taxable years ending on or
20before December 31, 2004, personal property that is used in
21the performance of infrastructure repairs in this State,
22including, but not limited to, municipal roads and streets,
23access roads, bridges, sidewalks, waste disposal systems,
24water and sewer line extensions, water distribution and
25purification facilities, storm water drainage and retention
26facilities, and sewage treatment facilities, resulting from a

 

 

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1State or federally declared disaster in Illinois or bordering
2Illinois when such repairs are initiated on facilities located
3in the declared disaster area within 6 months after the
4disaster.
5    (19) Beginning July 1, 1999, game or game birds purchased
6at a "game breeding and hunting preserve area" as that term is
7used in the Wildlife Code. This paragraph is exempt from the
8provisions of Section 3-75.
9    (20) A motor vehicle, as that term is defined in Section
101-146 of the Illinois Vehicle Code, that is donated to a
11corporation, limited liability company, society, association,
12foundation, or institution that is determined by the
13Department to be organized and operated exclusively for
14educational purposes. For purposes of this exemption, "a
15corporation, limited liability company, society, association,
16foundation, or institution organized and operated exclusively
17for educational purposes" means all tax-supported public
18schools, private schools that offer systematic instruction in
19useful branches of learning by methods common to public
20schools and that compare favorably in their scope and
21intensity with the course of study presented in tax-supported
22schools, and vocational or technical schools or institutes
23organized and operated exclusively to provide a course of
24study of not less than 6 weeks duration and designed to prepare
25individuals to follow a trade or to pursue a manual,
26technical, mechanical, industrial, business, or commercial

 

 

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1occupation.
2    (21) Beginning January 1, 2000, personal property,
3including food, purchased through fundraising events for the
4benefit of a public or private elementary or secondary school,
5a group of those schools, or one or more school districts if
6the events are sponsored by an entity recognized by the school
7district that consists primarily of volunteers and includes
8parents and teachers of the school children. This paragraph
9does not apply to fundraising events (i) for the benefit of
10private home instruction or (ii) for which the fundraising
11entity purchases the personal property sold at the events from
12another individual or entity that sold the property for the
13purpose of resale by the fundraising entity and that profits
14from the sale to the fundraising entity. This paragraph is
15exempt from the provisions of Section 3-75.
16    (22) Beginning January 1, 2000 and through December 31,
172001, new or used automatic vending machines that prepare and
18serve hot food and beverages, including coffee, soup, and
19other items, and replacement parts for these machines.
20Beginning January 1, 2002 and through June 30, 2003, machines
21and parts for machines used in commercial, coin-operated
22amusement and vending business if a use or occupation tax is
23paid on the gross receipts derived from the use of the
24commercial, coin-operated amusement and vending machines. This
25paragraph is exempt from the provisions of Section 3-75.
26    (23) Beginning August 23, 2001 and through June 30, 2016,

 

 

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1food for human consumption that is to be consumed off the
2premises where it is sold (other than alcoholic beverages,
3soft drinks, and food that has been prepared for immediate
4consumption) and prescription and nonprescription medicines,
5drugs, medical appliances, and insulin, urine testing
6materials, syringes, and needles used by diabetics, for human
7use, when purchased for use by a person receiving medical
8assistance under Article V of the Illinois Public Aid Code who
9resides in a licensed long-term care facility, as defined in
10the Nursing Home Care Act, or in a licensed facility as defined
11in the ID/DD Community Care Act, the MC/DD Act, or the
12Specialized Mental Health Rehabilitation Act of 2013.
13    (24) Beginning on August 2, 2001 (the effective date of
14Public Act 92-227), computers and communications equipment
15utilized for any hospital purpose and equipment used in the
16diagnosis, analysis, or treatment of hospital patients
17purchased by a lessor who leases the equipment, under a lease
18of one year or longer executed or in effect at the time the
19lessor would otherwise be subject to the tax imposed by this
20Act, to a hospital that has been issued an active tax exemption
21identification number by the Department under Section 1g of
22the Retailers' Occupation Tax Act. If the equipment is leased
23in a manner that does not qualify for this exemption or is used
24in any other nonexempt manner, the lessor shall be liable for
25the tax imposed under this Act or the Use Tax Act, as the case
26may be, based on the fair market value of the property at the

 

 

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1time the nonqualifying use occurs. No lessor shall collect or
2attempt to collect an amount (however designated) that
3purports to reimburse that lessor for the tax imposed by this
4Act or the Use Tax Act, as the case may be, if the tax has not
5been paid by the lessor. If a lessor improperly collects any
6such amount from the lessee, the lessee shall have a legal
7right to claim a refund of that amount from the lessor. If,
8however, that amount is not refunded to the lessee for any
9reason, the lessor is liable to pay that amount to the
10Department. This paragraph is exempt from the provisions of
11Section 3-75.
12    (25) Beginning on August 2, 2001 (the effective date of
13Public Act 92-227), personal property purchased by a lessor
14who leases the property, under a lease of one year or longer
15executed or in effect at the time the lessor would otherwise be
16subject to the tax imposed by this Act, to a governmental body
17that has been issued an active tax exemption identification
18number by the Department under Section 1g of the Retailers'
19Occupation Tax Act. If the property is leased in a manner that
20does not qualify for this exemption or is used in any other
21nonexempt manner, the lessor shall be liable for the tax
22imposed under this Act or the Use Tax Act, as the case may be,
23based on the fair market value of the property at the time the
24nonqualifying use occurs. No lessor shall collect or attempt
25to collect an amount (however designated) that purports to
26reimburse that lessor for the tax imposed by this Act or the

 

 

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1Use Tax Act, as the case may be, if the tax has not been paid
2by the lessor. If a lessor improperly collects any such amount
3from the lessee, the lessee shall have a legal right to claim a
4refund of that amount from the lessor. If, however, that
5amount is not refunded to the lessee for any reason, the lessor
6is liable to pay that amount to the Department. This paragraph
7is exempt from the provisions of Section 3-75.
8    (26) Beginning January 1, 2008, tangible personal property
9used in the construction or maintenance of a community water
10supply, as defined under Section 3.145 of the Environmental
11Protection Act, that is operated by a not-for-profit
12corporation that holds a valid water supply permit issued
13under Title IV of the Environmental Protection Act. This
14paragraph is exempt from the provisions of Section 3-75.
15    (27) Beginning January 1, 2010 and continuing through
16December 31, 2029, materials, parts, equipment, components,
17and furnishings incorporated into or upon an aircraft as part
18of the modification, refurbishment, completion, replacement,
19repair, or maintenance of the aircraft. This exemption
20includes consumable supplies used in the modification,
21refurbishment, completion, replacement, repair, and
22maintenance of aircraft. However, until January 1, 2024, this
23exemption excludes any materials, parts, equipment,
24components, and consumable supplies used in the modification,
25replacement, repair, and maintenance of aircraft engines or
26power plants, whether such engines or power plants are

 

 

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1installed or uninstalled upon any such aircraft. "Consumable
2supplies" include, but are not limited to, adhesive, tape,
3sandpaper, general purpose lubricants, cleaning solution,
4latex gloves, and protective films.
5    Beginning January 1, 2010 and continuing through December
631, 2023, this exemption applies only to the use of qualifying
7tangible personal property transferred incident to the
8modification, refurbishment, completion, replacement, repair,
9or maintenance of aircraft by persons who (i) hold an Air
10Agency Certificate and are empowered to operate an approved
11repair station by the Federal Aviation Administration, (ii)
12have a Class IV Rating, and (iii) conduct operations in
13accordance with Part 145 of the Federal Aviation Regulations.
14From January 1, 2024 through December 31, 2029, this exemption
15applies only to the use of qualifying tangible personal
16property by: (A) persons who modify, refurbish, complete,
17repair, replace, or maintain aircraft and who (i) hold an Air
18Agency Certificate and are empowered to operate an approved
19repair station by the Federal Aviation Administration, (ii)
20have a Class IV Rating, and (iii) conduct operations in
21accordance with Part 145 of the Federal Aviation Regulations;
22and (B) persons who engage in the modification, replacement,
23repair, and maintenance of aircraft engines or power plants
24without regard to whether or not those persons meet the
25qualifications of item (A).
26    The exemption does not include aircraft operated by a

 

 

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1commercial air carrier providing scheduled passenger air
2service pursuant to authority issued under Part 121 or Part
3129 of the Federal Aviation Regulations. The changes made to
4this paragraph (27) by Public Act 98-534 are declarative of
5existing law. It is the intent of the General Assembly that the
6exemption under this paragraph (27) applies continuously from
7January 1, 2010 through December 31, 2024; however, no claim
8for credit or refund is allowed for taxes paid as a result of
9the disallowance of this exemption on or after January 1, 2015
10and prior to February 5, 2020 (the effective date of Public Act
11101-629).
12    (28) Tangible personal property purchased by a
13public-facilities corporation, as described in Section
1411-65-10 of the Illinois Municipal Code, for purposes of
15constructing or furnishing a municipal convention hall, but
16only if the legal title to the municipal convention hall is
17transferred to the municipality without any further
18consideration by or on behalf of the municipality at the time
19of the completion of the municipal convention hall or upon the
20retirement or redemption of any bonds or other debt
21instruments issued by the public-facilities corporation in
22connection with the development of the municipal convention
23hall. This exemption includes existing public-facilities
24corporations as provided in Section 11-65-25 of the Illinois
25Municipal Code. This paragraph is exempt from the provisions
26of Section 3-75.

 

 

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1    (29) Beginning January 1, 2017 and through December 31,
22026, menstrual pads, tampons, and menstrual cups.
3    (30) Tangible personal property transferred to a purchaser
4who is exempt from the tax imposed by this Act by operation of
5federal law. This paragraph is exempt from the provisions of
6Section 3-75.
7    (31) Qualified tangible personal property used in the
8construction or operation of a data center that has been
9granted a certificate of exemption by the Department of
10Commerce and Economic Opportunity, whether that tangible
11personal property is purchased by the owner, operator, or
12tenant of the data center or by a contractor or subcontractor
13of the owner, operator, or tenant. Data centers that would
14have qualified for a certificate of exemption prior to January
151, 2020 had Public Act 101-31 been in effect, may apply for and
16obtain an exemption for subsequent purchases of computer
17equipment or enabling software purchased or leased to upgrade,
18supplement, or replace computer equipment or enabling software
19purchased or leased in the original investment that would have
20qualified.
21    The Department of Commerce and Economic Opportunity shall
22grant a certificate of exemption under this item (31) to
23qualified data centers as defined by Section 605-1025 of the
24Department of Commerce and Economic Opportunity Law of the
25Civil 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

 

 

10300HB0817ham001- 160 -LRB103 04410 HLH 72543 a

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
73-75.
8    (32) Beginning July 1, 2022, breast pumps, breast pump
9collection and storage supplies, and breast pump kits. This
10item (32) is exempt from the provisions of Section 3-75. As
11used 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
25the State Treasurer pursuant to the Revised Uniform Unclaimed
26Property Act. This item (33) is exempt from the provisions of

 

 

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1Section 3-75.
2    (34) Beginning on January 1, 2024, tangible personal
3property purchased by an active duty member of the armed
4forces of the United States who presents valid military
5identification and purchases the property using a form of
6payment where the federal government is the payor. The member
7of the armed forces must complete, at the point of sale, a form
8prescribed by the Department of Revenue documenting that the
9transaction is eligible for the exemption under this
10paragraph. Retailers must keep the form as documentation of
11the exemption in their records for a period of not less than 6
12years. "Armed forces of the United States" means the United
13States Army, Navy, Air Force, Marine Corps, or Coast Guard.
14This paragraph is exempt from the provisions of Section 3-75.
15    (35) Tangible personal property to be used or consumed
16within a quantum computing campus enterprise zone designated
17by the Department of Commerce and Economic Opportunity under
18Section 605-1115 of the Department of Commerce and Economic
19Opportunity Law of the Civil Administrative Code of Illinois.
20This paragraph is exempt from the provisions of Section 3-75.
21(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
22Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
2375-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
24Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
25eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
26revised 12-12-23.)
 

 

 

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1    Section 45. The Service Occupation Tax Act is amended by
2changing Section 3-5 as follows:
 
3    (35 ILCS 115/3-5)
4    Sec. 3-5. Exemptions. The following tangible personal
5property is exempt from the tax imposed by this Act:
6    (1) Personal property sold by a corporation, society,
7association, foundation, institution, or organization, other
8than a limited liability company, that is organized and
9operated as a not-for-profit service enterprise for the
10benefit of persons 65 years of age or older if the personal
11property was not purchased by the enterprise for the purpose
12of resale by the enterprise.
13    (2) Personal property purchased by a not-for-profit
14Illinois county fair association for use in conducting,
15operating, or promoting the county fair.
16    (3) Personal property purchased by any not-for-profit arts
17or cultural organization that establishes, by proof required
18by the Department by rule, that it has received an exemption
19under Section 501(c)(3) of the Internal Revenue Code and that
20is organized and operated primarily for the presentation or
21support of arts or cultural programming, activities, or
22services. These organizations include, but are not limited to,
23music and dramatic arts organizations such as symphony
24orchestras and theatrical groups, arts and cultural service

 

 

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1organizations, local arts councils, visual arts organizations,
2and media arts organizations. On and after July 1, 2001 (the
3effective date of Public Act 92-35), however, an entity
4otherwise eligible for this exemption shall not make tax-free
5purchases unless it has an active identification number issued
6by the Department.
7    (4) Legal tender, currency, medallions, or gold or silver
8coinage issued by the State of Illinois, the government of the
9United States of America, or the government of any foreign
10country, and bullion.
11    (5) Until July 1, 2003 and beginning again on September 1,
122004 through August 30, 2014, graphic arts machinery and
13equipment, including repair and replacement parts, both new
14and used, and including that manufactured on special order or
15purchased for lease, certified by the purchaser to be used
16primarily for graphic arts production. Equipment includes
17chemicals or chemicals acting as catalysts but only if the
18chemicals or chemicals acting as catalysts effect a direct and
19immediate change upon a graphic arts product. Beginning on
20July 1, 2017, graphic arts machinery and equipment is included
21in the manufacturing and assembling machinery and equipment
22exemption under Section 2 of this Act.
23    (6) Personal property sold by a teacher-sponsored student
24organization affiliated with an elementary or secondary school
25located in Illinois.
26    (7) Farm machinery and equipment, both new and used,

 

 

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1including that manufactured on special order, certified by the
2purchaser to be used primarily for production agriculture or
3State or federal agricultural programs, including individual
4replacement parts for the machinery and equipment, including
5machinery and equipment purchased for lease, and including
6implements of husbandry defined in Section 1-130 of the
7Illinois Vehicle Code, farm machinery and agricultural
8chemical and fertilizer spreaders, and nurse wagons required
9to be registered under Section 3-809 of the Illinois Vehicle
10Code, but excluding other motor vehicles required to be
11registered under the Illinois Vehicle Code. Horticultural
12polyhouses or hoop houses used for propagating, growing, or
13overwintering plants shall be considered farm machinery and
14equipment under this item (7). Agricultural chemical tender
15tanks and dry boxes shall include units sold separately from a
16motor vehicle required to be licensed and units sold mounted
17on a motor vehicle required to be licensed if the selling price
18of the tender is separately stated.
19    Farm machinery and equipment shall include precision
20farming equipment that is installed or purchased to be
21installed on farm machinery and equipment, including, but not
22limited to, tractors, harvesters, sprayers, planters, seeders,
23or spreaders. Precision farming equipment includes, but is not
24limited to, soil testing sensors, computers, monitors,
25software, global positioning and mapping systems, and other
26such equipment.

 

 

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1    Farm machinery and equipment also includes computers,
2sensors, software, and related equipment used primarily in the
3computer-assisted operation of production agriculture
4facilities, equipment, and activities such as, but not limited
5to, the collection, monitoring, and correlation of animal and
6crop data for the purpose of formulating animal diets and
7agricultural chemicals.
8    Beginning on January 1, 2024, farm machinery and equipment
9also includes electrical power generation equipment used
10primarily for production agriculture.
11    This item (7) is exempt from the provisions of Section
123-55.
13    (8) Until June 30, 2013, fuel and petroleum products sold
14to or used by an air common carrier, certified by the carrier
15to be used for consumption, shipment, or storage in the
16conduct of its business as an air common carrier, for a flight
17destined for or returning from a location or locations outside
18the United States without regard to previous or subsequent
19domestic stopovers.
20    Beginning July 1, 2013, fuel and petroleum products sold
21to or used by an air carrier, certified by the carrier to be
22used for consumption, shipment, or storage in the conduct of
23its business as an air common carrier, for a flight that (i) is
24engaged in foreign trade or is engaged in trade between the
25United States and any of its possessions and (ii) transports
26at least one individual or package for hire from the city of

 

 

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1origination to the city of final destination on the same
2aircraft, without regard to a change in the flight number of
3that aircraft.
4    (9) Proceeds of mandatory service charges separately
5stated on customers' bills for the purchase and consumption of
6food and beverages, to the extent that the proceeds of the
7service charge are in fact turned over as tips or as a
8substitute for tips to the employees who participate directly
9in preparing, serving, hosting or cleaning up the food or
10beverage function with respect to which the service charge is
11imposed.
12    (10) Until July 1, 2003, oil field exploration, drilling,
13and production equipment, including (i) rigs and parts of
14rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
15pipe and tubular goods, including casing and drill strings,
16(iii) pumps and pump-jack units, (iv) storage tanks and flow
17lines, (v) any individual replacement part for oil field
18exploration, drilling, and production equipment, and (vi)
19machinery and equipment purchased for lease; but excluding
20motor vehicles required to be registered under the Illinois
21Vehicle Code.
22    (11) Photoprocessing machinery and equipment, including
23repair and replacement parts, both new and used, including
24that manufactured on special order, certified by the purchaser
25to be used primarily for photoprocessing, and including
26photoprocessing machinery and equipment purchased for lease.

 

 

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1    (12) Until July 1, 2028, coal and aggregate exploration,
2mining, off-highway hauling, processing, maintenance, and
3reclamation equipment, including replacement parts and
4equipment, and including equipment purchased for lease, but
5excluding motor vehicles required to be registered under the
6Illinois Vehicle Code. The changes made to this Section by
7Public Act 97-767 apply on and after July 1, 2003, but no claim
8for credit or refund is allowed on or after August 16, 2013
9(the effective date of Public Act 98-456) for such taxes paid
10during the period beginning July 1, 2003 and ending on August
1116, 2013 (the effective date of Public Act 98-456).
12    (13) Beginning January 1, 1992 and through June 30, 2016,
13food for human consumption that is to be consumed off the
14premises where it is sold (other than alcoholic beverages,
15soft drinks and food that has been prepared for immediate
16consumption) and prescription and non-prescription medicines,
17drugs, medical appliances, and insulin, urine testing
18materials, syringes, and needles used by diabetics, for human
19use, when purchased for use by a person receiving medical
20assistance under Article V of the Illinois Public Aid Code who
21resides in a licensed long-term care facility, as defined in
22the Nursing Home Care Act, or in a licensed facility as defined
23in the ID/DD Community Care Act, the MC/DD Act, or the
24Specialized Mental Health Rehabilitation Act of 2013.
25    (14) Semen used for artificial insemination of livestock
26for direct agricultural production.

 

 

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1    (15) Horses, or interests in horses, registered with and
2meeting the requirements of any of the Arabian Horse Club
3Registry of America, Appaloosa Horse Club, American Quarter
4Horse Association, United States Trotting Association, or
5Jockey Club, as appropriate, used for purposes of breeding or
6racing for prizes. This item (15) is exempt from the
7provisions of Section 3-55, and the exemption provided for
8under this item (15) applies for all periods beginning May 30,
91995, but no claim for credit or refund is allowed on or after
10January 1, 2008 (the effective date of Public Act 95-88) for
11such taxes paid during the period beginning May 30, 2000 and
12ending on January 1, 2008 (the effective date of Public Act
1395-88).
14    (16) Computers and communications equipment utilized for
15any hospital purpose and equipment used in the diagnosis,
16analysis, or treatment of hospital patients sold to a lessor
17who leases the equipment, under a lease of one year or longer
18executed or in effect at the time of the purchase, to a
19hospital that has been issued an active tax exemption
20identification number by the Department under Section 1g of
21the Retailers' Occupation Tax Act.
22    (17) Personal property sold to a lessor who leases the
23property, under a lease of one year or longer executed or in
24effect at the time of the purchase, to a governmental body that
25has been issued an active tax exemption identification number
26by the Department under Section 1g of the Retailers'

 

 

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1Occupation Tax Act.
2    (18) Beginning with taxable years ending on or after
3December 31, 1995 and ending with taxable years ending on or
4before December 31, 2004, personal property that is donated
5for disaster relief to be used in a State or federally declared
6disaster area in Illinois or bordering Illinois by a
7manufacturer or retailer that is registered in this State to a
8corporation, society, association, foundation, or institution
9that has been issued a sales tax exemption identification
10number by the Department that assists victims of the disaster
11who reside within the declared disaster area.
12    (19) Beginning with taxable years ending on or after
13December 31, 1995 and ending with taxable years ending on or
14before December 31, 2004, personal property that is used in
15the performance of infrastructure repairs in this State,
16including, but not limited to, municipal roads and streets,
17access roads, bridges, sidewalks, waste disposal systems,
18water and sewer line extensions, water distribution and
19purification facilities, storm water drainage and retention
20facilities, and sewage treatment facilities, resulting from a
21State or federally declared disaster in Illinois or bordering
22Illinois when such repairs are initiated on facilities located
23in the declared disaster area within 6 months after the
24disaster.
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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1in the Wildlife Code. This paragraph is exempt from the
2provisions of Section 3-55.
3    (21) A motor vehicle, as that term is defined in Section
41-146 of the Illinois Vehicle Code, that is donated to a
5corporation, limited liability company, society, association,
6foundation, or institution that is determined by the
7Department to be organized and operated exclusively for
8educational purposes. For purposes of this exemption, "a
9corporation, limited liability company, society, association,
10foundation, or institution organized and operated exclusively
11for educational purposes" means all tax-supported public
12schools, private schools that offer systematic instruction in
13useful branches of learning by methods common to public
14schools and that compare favorably in their scope and
15intensity with the course of study presented in tax-supported
16schools, and vocational or technical schools or institutes
17organized and operated exclusively to provide a course of
18study of not less than 6 weeks duration and designed to prepare
19individuals to follow a trade or to pursue a manual,
20technical, mechanical, industrial, business, or commercial
21occupation.
22    (22) Beginning January 1, 2000, personal property,
23including food, purchased through fundraising events for the
24benefit of a public or private elementary or secondary school,
25a group of those schools, or one or more school districts if
26the events are sponsored by an entity recognized by the school

 

 

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1district that consists primarily of volunteers and includes
2parents and teachers of the school children. This paragraph
3does not apply to fundraising events (i) for the benefit of
4private home instruction or (ii) for which the fundraising
5entity purchases the personal property sold at the events from
6another individual or entity that sold the property for the
7purpose of resale by the fundraising entity and that profits
8from the sale to the fundraising entity. This paragraph is
9exempt from the provisions of Section 3-55.
10    (23) Beginning January 1, 2000 and through December 31,
112001, new or used automatic vending machines that prepare and
12serve hot food and beverages, including coffee, soup, and
13other items, and replacement parts for these machines.
14Beginning January 1, 2002 and through June 30, 2003, machines
15and parts for machines used in commercial, coin-operated
16amusement and vending business if a use or occupation tax is
17paid on the gross receipts derived from the use of the
18commercial, coin-operated amusement and vending machines. This
19paragraph is exempt from the provisions of Section 3-55.
20    (24) Beginning on August 2, 2001 (the effective date of
21Public Act 92-227), computers and communications equipment
22utilized for any hospital purpose and equipment used in the
23diagnosis, analysis, or treatment of hospital patients sold to
24a lessor who leases the equipment, under a lease of one year or
25longer executed or in effect at the time of the purchase, to a
26hospital that has been issued an active tax exemption

 

 

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1identification number by the Department under Section 1g of
2the Retailers' Occupation Tax Act. This paragraph is exempt
3from the provisions of Section 3-55.
4    (25) Beginning on August 2, 2001 (the effective date of
5Public Act 92-227), personal property sold to a lessor who
6leases the property, under a lease of one year or longer
7executed or in effect at the time of the purchase, to a
8governmental body that has been issued an active tax exemption
9identification number by the Department under Section 1g of
10the Retailers' Occupation Tax Act. This paragraph is exempt
11from the provisions of Section 3-55.
12    (26) Beginning on January 1, 2002 and through June 30,
132016, tangible personal property purchased from an Illinois
14retailer by a taxpayer engaged in centralized purchasing
15activities in Illinois who will, upon receipt of the property
16in Illinois, temporarily store the property in Illinois (i)
17for the purpose of subsequently transporting it outside this
18State for use or consumption thereafter solely outside this
19State or (ii) for the purpose of being processed, fabricated,
20or manufactured into, attached to, or incorporated into other
21tangible personal property to be transported outside this
22State and thereafter used or consumed solely outside this
23State. The Director of Revenue shall, pursuant to rules
24adopted in accordance with the Illinois Administrative
25Procedure Act, issue a permit to any taxpayer in good standing
26with the Department who is eligible for the exemption under

 

 

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1this paragraph (26). The permit issued under this paragraph
2(26) shall authorize the holder, to the extent and in the
3manner specified in the rules adopted under this Act, to
4purchase tangible personal property from a retailer exempt
5from the taxes imposed by this Act. Taxpayers shall maintain
6all necessary books and records to substantiate the use and
7consumption of all such tangible personal property outside of
8the State of Illinois.
9    (27) Beginning January 1, 2008, tangible personal property
10used in the construction or maintenance of a community water
11supply, as defined under Section 3.145 of the Environmental
12Protection Act, that is operated by a not-for-profit
13corporation that holds a valid water supply permit issued
14under Title IV of the Environmental Protection Act. This
15paragraph is exempt from the provisions of Section 3-55.
16    (28) Tangible personal property sold to a
17public-facilities corporation, as described in Section
1811-65-10 of the Illinois Municipal Code, for purposes of
19constructing or furnishing a municipal convention hall, but
20only if the legal title to the municipal convention hall is
21transferred to the municipality without any further
22consideration by or on behalf of the municipality at the time
23of the completion of the municipal convention hall or upon the
24retirement or redemption of any bonds or other debt
25instruments issued by the public-facilities corporation in
26connection with the development of the municipal convention

 

 

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1hall. This exemption includes existing public-facilities
2corporations as provided in Section 11-65-25 of the Illinois
3Municipal Code. This paragraph is exempt from the provisions
4of Section 3-55.
5    (29) Beginning January 1, 2010 and continuing through
6December 31, 2029, materials, parts, equipment, components,
7and furnishings incorporated into or upon an aircraft as part
8of the modification, refurbishment, completion, replacement,
9repair, or maintenance of the aircraft. This exemption
10includes consumable supplies used in the modification,
11refurbishment, completion, replacement, repair, and
12maintenance of aircraft. However, until January 1, 2024, this
13exemption excludes any materials, parts, equipment,
14components, and consumable supplies used in the modification,
15replacement, repair, and maintenance of aircraft engines or
16power plants, whether such engines or power plants are
17installed or uninstalled upon any such aircraft. "Consumable
18supplies" include, but are not limited to, adhesive, tape,
19sandpaper, general purpose lubricants, cleaning solution,
20latex gloves, and protective films.
21    Beginning January 1, 2010 and continuing through December
2231, 2023, this exemption applies only to the transfer of
23qualifying tangible personal property incident to the
24modification, refurbishment, completion, replacement, repair,
25or maintenance of an aircraft by persons who (i) hold an Air
26Agency Certificate and are empowered to operate an approved

 

 

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1repair station by the Federal Aviation Administration, (ii)
2have a Class IV Rating, and (iii) conduct operations in
3accordance with Part 145 of the Federal Aviation Regulations.
4The exemption does not include aircraft operated by a
5commercial air carrier providing scheduled passenger air
6service pursuant to authority issued under Part 121 or Part
7129 of the Federal Aviation Regulations. From January 1, 2024
8through December 31, 2029, this exemption applies only to the
9use of qualifying tangible personal property by: (A) persons
10who modify, refurbish, complete, repair, replace, or maintain
11aircraft and who (i) hold an Air Agency Certificate and are
12empowered to operate an approved repair station by the Federal
13Aviation Administration, (ii) have a Class IV Rating, and
14(iii) conduct operations in accordance with Part 145 of the
15Federal Aviation Regulations; and (B) persons who engage in
16the modification, replacement, repair, and maintenance of
17aircraft engines or power plants without regard to whether or
18not those persons meet the qualifications of item (A).
19    The changes made to this paragraph (29) by Public Act
2098-534 are declarative of existing law. It is the intent of the
21General Assembly that the exemption under this paragraph (29)
22applies continuously from January 1, 2010 through December 31,
232024; however, no claim for credit or refund is allowed for
24taxes paid as a result of the disallowance of this exemption on
25or after January 1, 2015 and prior to February 5, 2020 (the
26effective date of Public Act 101-629).

 

 

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1    (30) Beginning January 1, 2017 and through December 31,
22026, menstrual pads, tampons, and menstrual cups.
3    (31) Tangible personal property transferred to a purchaser
4who is exempt from tax by operation of federal law. This
5paragraph is exempt from the provisions of Section 3-55.
6    (32) Qualified tangible personal property used in the
7construction or operation of a data center that has been
8granted a certificate of exemption by the Department of
9Commerce and Economic Opportunity, whether that tangible
10personal property is purchased by the owner, operator, or
11tenant of the data center or by a contractor or subcontractor
12of the owner, operator, or tenant. Data centers that would
13have qualified for a certificate of exemption prior to January
141, 2020 had Public Act 101-31 been in effect, may apply for and
15obtain an exemption for subsequent purchases of computer
16equipment or enabling software purchased or leased to upgrade,
17supplement, or replace computer equipment or enabling software
18purchased or leased in the original investment that would have
19qualified.
20    The Department of Commerce and Economic Opportunity shall
21grant a certificate of exemption under this item (32) to
22qualified data centers as defined by Section 605-1025 of the
23Department of Commerce and Economic Opportunity Law of the
24Civil 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
63-55.
7    (33) Beginning July 1, 2022, breast pumps, breast pump
8collection and storage supplies, and breast pump kits. This
9item (33) is exempt from the provisions of Section 3-55. As
10used 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
24the State Treasurer pursuant to the Revised Uniform Unclaimed
25Property Act. This item (34) is exempt from the provisions of
26Section 3-55.

 

 

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1    (35) Beginning on January 1, 2024, tangible personal
2property purchased by an active duty member of the armed
3forces of the United States who presents valid military
4identification and purchases the property using a form of
5payment where the federal government is the payor. The member
6of the armed forces must complete, at the point of sale, a form
7prescribed by the Department of Revenue documenting that the
8transaction is eligible for the exemption under this
9paragraph. Retailers must keep the form as documentation of
10the exemption in their records for a period of not less than 6
11years. "Armed forces of the United States" means the United
12States Army, Navy, Air Force, Marine Corps, or Coast Guard.
13This paragraph is exempt from the provisions of Section 3-55.
14    (36) Tangible personal property to be used or consumed
15within a quantum computing campus enterprise zone designated
16by the Department of Commerce and Economic Opportunity under
17Section 605-1115 of the Department of Commerce and Economic
18Opportunity Law of the Civil Administrative Code of Illinois.
19This paragraph is exempt from the provisions of Section 3-55.
20(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
21Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2275-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
23Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
24eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
25revised 12-12-23.)
 

 

 

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1    Section 50. The Retailers' Occupation Tax Act is amended
2by changing Section 2-5 as follows:
 
3    (35 ILCS 120/2-5)
4    Sec. 2-5. Exemptions. Gross receipts from proceeds from
5the sale of the following tangible personal property are
6exempt 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

 

 

10300HB0817ham001- 200 -LRB103 04410 HLH 72543 a

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

 

 

10300HB0817ham001- 206 -LRB103 04410 HLH 72543 a

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;
18102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
19Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
205-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
215-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
226-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised
2312-12-23.)
 
24    Section 55. The Property Tax Code is amended by changing
25Section 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
3electric vehicles, electric vehicle component parts, or
4electric vehicle power supply equipment; abatement.
5    (a) Any taxing district, upon a majority vote of its
6governing body, may, after determination of the assessed value
7as set forth in this Code, order the clerk of the appropriate
8municipality or county to abate, for a period not to exceed 30
9consecutive years, any portion of real property taxes
10otherwise levied or extended by the taxing district on a REV
11Illinois Project facility owned by an electric vehicle
12manufacturer, electric vehicle component parts manufacturer,
13or an electric vehicle power supply manufacturer, or renewable
14energy manufacturer that is subject to an agreement with the
15Department of Commerce and Economic Opportunity under Section
1645 of the Reimagining Energy and Vehicles in Illinois Act,
17during the period of time such agreement is in effect as
18specified by the Department of Commerce and Economic
19Opportunity.
20    (b) Two or more taxing districts, upon a majority vote of
21each of their respective governing bodies, may agree to abate,
22for a period not to exceed 30 consecutive tax years, a portion
23of the real property taxes otherwise levied or extended by
24those taxing districts on a REV Illinois Project facility
25owned by an electric vehicle manufacturer, electric vehicle

 

 

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1component parts manufacturer, electric vehicle power supply
2manufacturer, or a renewable energy manufacturer that is
3subject to an agreement with the Department of Commerce and
4Economic Opportunity under Section 45 of the Reimagining
5Energy and Vehicles in Illinois Act. The agreement entered
6into by the taxing districts under this subsection (b) shall
7be filed with the county clerk who shall, for the period the
8agreement remains in effect, abate the portion of the real
9estate taxes levied or extended by those taxing districts as
10directed in the agreement. Any such agreement entered into by
112 or more taxing districts before the effective date of this
12amendatory Act of the 103rd General Assembly that is not
13inconsistent with the provisions of this subsection (b) is
14hereby declared valid and enforceable for the effective period
15of 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
18amended by changing Sections 10-4, 10-5.3, 10-10.3, and
1910-10.4 as follows:
 
20    (65 ILCS 115/10-4)
21    Sec. 10-4. Qualifications for River Edge Redevelopment
22Zones. 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
10geographic area with an Enterprise Zone. If a taxpayer is
11located in an area with an overlapping Enterprise Zone and
12River Edge Redevelopment Zone, the taxpayer must elect, in the
13form and manner required by the Department, from which program
14it 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
18Zones.
19    (a) Approval of designated River Edge Redevelopment Zones
20shall be made by the Department by certification of the
21designating ordinance. The Department shall promptly issue a
22certificate for each zone upon its approval. The certificate
23shall be signed by the Director of the Department, shall make
24specific reference to the designating ordinance, which shall
25be attached thereto, and shall be filed in the office of the

 

 

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1Secretary of State. A certified copy of the River Edge
2Redevelopment Zone Certificate, or a duplicate original
3thereof, shall be recorded in the office of the recorder of
4deeds of the county in which the River Edge Redevelopment Zone
5lies.
6    (b) A River Edge Redevelopment Zone shall be effective
7upon its certification. The Department shall transmit a copy
8of the certification to the Department of Revenue, and to the
9designating municipality. Upon certification of a River Edge
10Redevelopment Zone, the terms and provisions of the
11designating ordinance shall be in effect, and may not be
12amended or repealed except in accordance with Section 10-5.4.
13    (c) A River Edge Redevelopment Zone shall be in effect for
14the period stated in the certificate, which shall in no event
15exceed 30 calendar years. Zones shall terminate at midnight of
16December 31 of the final calendar year of the certified term,
17except as provided in Section 10-5.4.
18    (d) In calendar years 2006 and 2007, the Department may
19certify one pilot River Edge Redevelopment Zone in the City of
20East St. Louis, one pilot River Edge Redevelopment Zone in the
21City of Rockford, and one pilot River Edge Redevelopment Zone
22in the City of Aurora.
23    In calendar year 2009, the Department may certify one
24pilot River Edge Redevelopment Zone in the City of Elgin.
25    On or after the effective date of this amendatory Act of
26the 97th General Assembly, the Department may certify one

 

 

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1additional pilot River Edge Redevelopment Zone in the City of
2Peoria.
3    On or after the effective date of this amendatory Act of
4the 103rd General Assembly, the Department may certify 2
5additional pilot River Edge Redevelopment Zones, including one
6in the City of Joliet and one in the City of Kankakee.
7    On or after the effective date of this amendatory Act of
8the 103rd General Assembly, the Department may certify 7
9additional pilot River Edge Redevelopment Zones, including one
10in the City of East Moline, one in the City of Moline, one in
11the City of Ottawa, one