November 25, 2019
Honorable Members of
Today, I veto House Bill 3902 from the 101st General
Assembly, which would have amended the Use Tax Act, the Service Use Tax Act,
the Service Occupation Tax Act, and the Retailers’ Occupation Tax Act and
applied a sales tax exemption for materials, parts, equipment, components, and
furnishings incorporated into or upon an aircraft as part of the modification,
refurbishment, completion, replacement, repair, or maintenance of a private
aircraft continuously from January 1, 2010 through December 31, 2024.
My administration appreciates the hard work of
the sponsors of this legislation in the House and Senate. However, I am opposed
to providing a sales tax exemption to private aircraft companies. The delinquent
taxes owed from Illinois’ private jet companies amounts to roughly $50 million,
including interest and penalties, and if House Bill 3902 became law, the state
would be allowing an additional $10 million per year in tax credits through
Giving private aircraft companies tens of
millions of dollars in past due tax forgiveness is not the right fiscal
decision for our state as we face billions in debt associated with unpaid
bills, a multi-billion-dollar structural deficit, and critical needs in schools
and public safety services.
My administration is committed to growing
Illinois’ economy, spurring competition, and creating jobs in every region of
the state. I’ve taken several steps to accomplish this objective, with the
strong bipartisan support of the General Assembly in efforts that extend beyond
any single industry.
we enacted the historic $45 billion Rebuild Illinois plan, which will support
and create hundreds of thousands of jobs, fix our long-neglected roads and
bridges, invest in higher education and bring broadband to every part of the
also extended the Research and Development Tax Credit, helping manufacturers
who are seeking certainty in the long-term.
expanded and made permanent the Manufacturers’ Purchase Credit, allowing
companies to receive a sales tax exemption for machinery or equipment used to
manufacture personal property for retail sale or lease.
eliminated the Corporate Franchise Tax, which affects every business operating
in the state of Illinois – small businesses most of all.
created a new apprenticeship tax credit, which will cover up to $3,500 of
qualified education expenses incurred by employers on behalf of a qualifying
expanded a set of tax credits for relocating and expanding businesses through
the Blue Collar Jobs Act.
Most importantly, we are working to balance
our budget and to provide a stable fiscal environment upon which to build a thriving
economy. Allowing this past due tax forgiveness to the private jet industry at
this time is not in line with this vision.
Therefore, pursuant to Section 9(b) of Article
IV of the Illinois Constitution of 1970, I hereby return House Bill 3902,
entitled “AN ACT concerning revenue,” with the forgoing objections, vetoed in