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92_HB6036
LRB9215315SMks
1 AN ACT in relation to taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by changing
5 Section 3-85 as follows:
6 (35 ILCS 105/3-85)
7 Sec. 3-85. Manufacturer's purchase credit Purchase
8 Credit. For purchases of machinery and equipment made on and
9 after January 1, 1995, a purchaser of manufacturing machinery
10 and equipment that qualifies for the exemption provided by
11 paragraph (18) of Section 3-5 of this Act earns a credit in
12 an amount equal to a fixed percentage of the tax which would
13 have been incurred under this Act on those purchases. For
14 purchases of graphic arts machinery and equipment made on or
15 after July 1, 1996, a purchaser of graphic arts machinery and
16 equipment that qualifies for the exemption provided by
17 paragraph (6) of Section 3-5 of this Act earns a credit in an
18 amount equal to a fixed percentage of the tax that would have
19 been incurred under this Act on those purchases. The credit
20 earned for purchases of manufacturing machinery and equipment
21 or graphic arts machinery and equipment shall be referred to
22 as the Manufacturer's Purchase Credit. A graphic arts
23 producer is a person engaged in graphic arts production as
24 defined in Section 2-30 of the Retailers' Occupation Tax Act.
25 Beginning July 1, 1996, all references in this Section to
26 manufacturers or manufacturing shall also be deemed to refer
27 to graphic arts producers or graphic arts production.
28 The amount of credit shall be a percentage of the tax
29 that would have been incurred on the purchase of
30 manufacturing machinery and equipment or graphic arts
31 machinery and equipment if the exemptions provided by
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1 paragraph (6) or paragraph (18) of Section 3-5 of this Act
2 had not been applicable. The percentage shall be as follows:
3 (1) 15% for purchases made on or before June 30,
4 1995.
5 (2) 25% for purchases made after June 30, 1995, and
6 on or before June 30, 1996.
7 (3) 40% for purchases made after June 30, 1996, and
8 on or before June 30, 1997.
9 (4) 50% for purchases made on or after July 1,
10 1997.
11 A purchaser of production related tangible personal
12 property desiring to use the Manufacturer's Purchase Credit
13 shall certify to the seller that the purchaser is satisfying
14 all or part of the liability under the Use Tax Act or the
15 Service Use Tax Act that is due on the purchase of the
16 production related tangible personal property by use of
17 Manufacturer's Purchase Credit. The Manufacturer's Purchase
18 Credit certification must be dated and shall include the name
19 and address of the purchaser, the purchaser's registration
20 number, if registered, the credit being applied, and a
21 statement that the State Use Tax or Service Use Tax liability
22 is being satisfied with the manufacturer's or graphic arts
23 producer's accumulated purchase credit. Certification may be
24 incorporated into the manufacturer's or graphic arts
25 producer's purchase order. Manufacturer's Purchase Credit
26 certification by the manufacturer or graphic arts producer
27 may be used to satisfy the retailer's or serviceman's
28 liability under the Retailers' Occupation Tax Act or Service
29 Occupation Tax Act for the credit claimed, not to exceed
30 6.25% of the receipts subject to tax from a qualifying
31 purchase, but only if the retailer or serviceman reports the
32 Manufacturer's Purchase Credit claimed as required by the
33 Department. The Manufacturer's Purchase Credit earned by
34 purchase of exempt manufacturing machinery and equipment or
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1 graphic arts machinery and equipment is a non-transferable
2 credit. A manufacturer or graphic arts producer that enters
3 into a contract involving the installation of tangible
4 personal property into real estate within a manufacturing or
5 graphic arts production facility may authorize a construction
6 contractor to utilize credit accumulated by the manufacturer
7 or graphic arts producer to purchase the tangible personal
8 property. A manufacturer or graphic arts producer intending
9 to use accumulated credit to purchase such tangible personal
10 property shall execute a written contract authorizing the
11 contractor to utilize a specified dollar amount of credit.
12 The contractor shall furnish the supplier with the
13 manufacturer's or graphic arts producer's name, registration
14 or resale number, and a statement that a specific amount of
15 the Use Tax or Service Use Tax liability, not to exceed 6.25%
16 of the selling price, is being satisfied with the credit. The
17 manufacturer or graphic arts producer shall remain liable to
18 timely report all information required by the annual Report
19 of Manufacturer's Purchase Credit Used for all credit
20 utilized by a construction contractor.
21 The Manufacturer's Purchase Credit may be used to satisfy
22 liability under the Use Tax Act or the Service Use Tax Act
23 due on the purchase of production related tangible personal
24 property (including purchases by a manufacturer, by a graphic
25 arts producer, or by a lessor who rents or leases the use of
26 the property to a manufacturer or graphic arts producer) that
27 does not otherwise qualify for the manufacturing machinery
28 and equipment exemption or the graphic arts machinery and
29 equipment exemption. "Production related tangible personal
30 property" means (i) all tangible personal property used or
31 consumed by the purchaser in a manufacturing facility in
32 which a manufacturing process described in Section 2-45 of
33 the Retailers' Occupation Tax Act takes place, including
34 tangible personal property purchased for incorporation into
-4- LRB9215315SMks
1 real estate within a manufacturing facility and including,
2 but not limited to, tangible personal property used or
3 consumed in activities such as preproduction material
4 handling, receiving, quality control, inventory control,
5 storage, staging, and packaging for shipping and
6 transportation purposes; (ii) all tangible personal property
7 used or consumed by the purchaser in a graphic arts facility
8 in which graphic arts production as described in Section 2-30
9 of the Retailers' Occupation Tax Act takes place, including
10 tangible personal property purchased for incorporation into
11 real estate within a graphic arts facility and including, but
12 not limited to, all tangible personal property used or
13 consumed in activities such as graphic arts preliminary or
14 pre-press production, pre-production material handling,
15 receiving, quality control, inventory control, storage,
16 staging, sorting, labeling, mailing, tying, wrapping, and
17 packaging; and (iii) all tangible personal property used or
18 consumed by the purchaser for research and development.
19 "Production related tangible personal property" does not
20 include (i) tangible personal property used, within or
21 without a manufacturing facility, in sales, purchasing,
22 accounting, fiscal management, marketing, personnel
23 recruitment or selection, or landscaping or (ii) tangible
24 personal property required to be titled or registered with a
25 department, agency, or unit of federal, state, or local
26 government. The Manufacturer's Purchase Credit may be used
27 to satisfy the tax arising either from the purchase of
28 machinery and equipment on or after January 1, 1995 for which
29 the exemption provided by paragraph (18) of Section 3-5 of
30 this Act was erroneously claimed, or the purchase of
31 machinery and equipment on or after July 1, 1996 for which
32 the exemption provided by paragraph (6) of Section 3-5 of
33 this Act was erroneously claimed, but not in satisfaction of
34 penalty, if any, and interest for failure to pay the tax when
-5- LRB9215315SMks
1 due. A purchaser of production related tangible personal
2 property who is required to pay Illinois Use Tax or Service
3 Use Tax on the purchase directly to the Department may
4 utilize the Manufacturer's Purchase Credit in satisfaction of
5 the tax arising from that purchase, but not in satisfaction
6 of penalty and interest. A purchaser who uses the
7 Manufacturer's Purchase Credit to purchase property which is
8 later determined not to be production related tangible
9 personal property may be liable for tax, penalty, and
10 interest on the purchase of that property as of the date of
11 purchase but shall be entitled to use the disallowed
12 Manufacturer's Purchase Credit, so long as it has not
13 expired, on qualifying purchases of production related
14 tangible personal property not previously subject to credit
15 usage. The Manufacturer's Purchase Credit earned by a
16 manufacturer or graphic arts producer expires the last day of
17 the second calendar year following the calendar year in which
18 the credit arose.
19 A purchaser earning Manufacturer's Purchase Credit shall
20 sign and file an annual Report of Manufacturer's Purchase
21 Credit Earned for each calendar year no later than the last
22 day of the sixth month following the calendar year in which a
23 Manufacturer's Purchase Credit is earned. A Report of
24 Manufacturer's Purchase Credit Earned shall be filed on forms
25 as prescribed or approved by the Department and shall state,
26 for each month of the calendar year: (i) the total purchase
27 price of all purchases of exempt manufacturing or graphic
28 arts machinery on which the credit was earned; (ii) the total
29 State Use Tax or Service Use Tax which would have been due on
30 those items; (iii) the percentage used to calculate the
31 amount of credit earned; (iv) the amount of credit earned;
32 and (v) such other information as the Department may
33 reasonably require. A purchaser earning Manufacturer's
34 Purchase Credit shall maintain records which identify, as to
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1 each purchase of manufacturing or graphic arts machinery and
2 equipment on which the purchaser earned Manufacturer's
3 Purchase Credit, the vendor (including, if applicable, either
4 the vendor's registration number or Federal Employer
5 Identification Number), the purchase price, and the amount of
6 Manufacturer's Purchase Credit earned on each purchase.
7 A purchaser using Manufacturer's Purchase Credit shall
8 sign and file an annual Report of Manufacturer's Purchase
9 Credit Used for each calendar year no later than the last day
10 of the sixth month following the calendar year in which a
11 Manufacturer's Purchase Credit is used. A Report of
12 Manufacturer's Purchase Credit Used shall be filed on forms
13 as prescribed or approved by the Department and shall state,
14 for each month of the calendar year: (i) the total purchase
15 price of production related tangible personal property
16 purchased from Illinois suppliers; (ii) the total purchase
17 price of production related tangible personal property
18 purchased from out-of-state suppliers; (iii) the total amount
19 of credit used during such month; and (iv) such other
20 information as the Department may reasonably require. A
21 purchaser using Manufacturer's Purchase Credit shall maintain
22 records that identify, as to each purchase of production
23 related tangible personal property on which the purchaser
24 used Manufacturer's Purchase Credit, the vendor (including,
25 if applicable, either the vendor's registration number or
26 Federal Employer Identification Number), the purchase price,
27 and the amount of Manufacturer's Purchase Credit used on each
28 purchase.
29 No annual report shall be filed before May 1, 1996. A
30 purchaser that fails to file an annual Report of
31 Manufacturer's Purchase Credit Earned or an annual Report of
32 Manufacturer's Purchase Credit Used by the last day of the
33 sixth month following the end of the calendar year shall
34 forfeit all Manufacturer's Purchase Credit for that calendar
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1 year unless it establishes that its failure to file was due
2 to reasonable cause. Manufacturer's Purchase Credit reports
3 may be amended to report and claim credit on qualifying
4 purchases not previously reported at any time before the
5 credit would have expired, unless both the Department and the
6 purchaser have agreed to an extension of the statute of
7 limitations for the issuance of a notice of tax liability as
8 provided in Section 4 of the Retailers' Occupation Tax Act.
9 If the time for assessment or refund has been extended, then
10 amended reports for a calendar year may be filed at any time
11 prior to the date to which the statute of limitations for the
12 calendar year or portion thereof has been extended. No
13 Manufacturer's Purchase Credit report filed with the
14 Department for periods prior to January 1, 1995 shall be
15 approved. Manufacturer's Purchase Credit claimed on an
16 amended report may be used to satisfy tax liability under the
17 Use Tax Act or the Service Use Tax Act (i) on qualifying
18 purchases of production related tangible personal property
19 made after the date the amended report is filed or (ii)
20 assessed by the Department on qualifying purchases of
21 production related tangible personal property made in the
22 case of manufacturers on or after January 1, 1995, or in the
23 case of graphic arts producers on or after July 1, 1996.
24 If the purchaser is not the manufacturer or a graphic
25 arts producer, but rents or leases the use of the property to
26 a manufacturer or graphic arts producer, the purchaser may
27 earn, report, and use Manufacturer's Purchase Credit in the
28 same manner as a manufacturer or graphic arts producer.
29 A purchaser shall not be entitled to any Manufacturer's
30 Purchase Credit for a purchase that is required to be
31 reported and is not timely reported as provided in this
32 Section. A purchaser remains liable for (i) any tax that was
33 satisfied by use of a Manufacturer's Purchase Credit, as of
34 the date of purchase, if that use is not timely reported as
-8- LRB9215315SMks
1 required in this Section and (ii) for any applicable
2 penalties and interest for failing to pay the tax when due.
3 (Source: P.A. 88-547, eff. 6-30-94; 89-89, eff. 6-30-95;
4 89-235, eff. 8-4-95; 89-531, eff. 7-19-96.)
5 Section 10. The Service Use Tax Act is amended by
6 changing Section 3-70 as follows:
7 (35 ILCS 110/3-70)
8 Sec. 3-70. Manufacturer's purchase credit Purchase
9 Credit. For purchases of machinery and equipment made on and
10 after January 1, 1995, a purchaser of manufacturing machinery
11 and equipment that qualifies for the exemption provided by
12 Section 2 of this Act earns a credit in an amount equal to a
13 fixed percentage of the tax which would have been incurred
14 under this Act on those purchases. For purchases of graphic
15 arts machinery and equipment made on or after July 1, 1996, a
16 purchase of graphic arts machinery and equipment that
17 qualifies for the exemption provided by paragraph (5) of
18 Section 3-5 of this Act earns a credit in an amount equal to
19 a fixed percentage of the tax that would have been incurred
20 under this Act on those purchases. The credit earned for the
21 purchase of manufacturing machinery and equipment and graphic
22 arts machinery and equipment shall be referred to as the
23 Manufacturer's Purchase Credit. A graphic arts producer is a
24 person engaged in graphic arts production as defined in
25 Section 3-30 of the Service Occupation Tax Act. Beginning
26 July 1, 1996, all references in this Section to manufacturers
27 or manufacturing shall also refer to graphic arts producers
28 or graphic arts production.
29 The amount of credit shall be a percentage of the tax
30 that would have been incurred on the purchase of the
31 manufacturing machinery and equipment or graphic arts
32 machinery and equipment if the exemptions provided by Section
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1 2 or paragraph (5) of Section 3-5 of this Act had not been
2 applicable.
3 All purchases of manufacturing machinery and equipment
4 and graphic arts machinery and equipment that qualify for the
5 exemptions provided by paragraph (5) of Section 2 or
6 paragraph (5) of Section 3-5 of this Act qualify for the
7 credit without regard to whether the serviceman elected, or
8 could have elected, under paragraph (7) of Section 2 of this
9 Act to exclude the transaction from this Act. If the
10 serviceman's billing to the service customer separately
11 states a selling price for the exempt manufacturing machinery
12 or equipment or the exempt graphic arts machinery and
13 equipment, the credit shall be calculated, as otherwise
14 provided herein, based on that selling price. If the
15 serviceman's billing does not separately state a selling
16 price for the exempt manufacturing machinery and equipment or
17 the exempt graphic arts machinery and equipment, the credit
18 shall be calculated, as otherwise provided herein, based on
19 50% of the entire billing. If the serviceman contracts to
20 design, develop, and produce special order manufacturing
21 machinery and equipment or special order graphic arts
22 machinery and equipment, and the billing does not separately
23 state a selling price for such special order machinery and
24 equipment, the credit shall be calculated, as otherwise
25 provided herein, based on 50% of the entire billing. The
26 provisions of this paragraph are effective for purchases made
27 on or after January 1, 1995.
28 The percentage shall be as follows:
29 (1) 15% for purchases made on or before June 30,
30 1995.
31 (2) 25% for purchases made after June 30, 1995, and
32 on or before June 30, 1996.
33 (3) 40% for purchases made after June 30, 1996, and
34 on or before June 30, 1997.
-10- LRB9215315SMks
1 (4) 50% for purchases made on or after July 1,
2 1997.
3 A purchaser of production related tangible personal
4 property desiring to use the Manufacturer's Purchase Credit
5 shall certify to the seller that the purchaser is satisfying
6 all or part of the liability under the Use Tax Act or the
7 Service Use Tax Act that is due on the purchase of the
8 production related tangible personal property by use of a
9 Manufacturer's Purchase Credit. The Manufacturer's Purchase
10 Credit certification must be dated and shall include the name
11 and address of the purchaser, the purchaser's registration
12 number, if registered, the credit being applied, and a
13 statement that the State Use Tax or Service Use Tax liability
14 is being satisfied with the manufacturer's or graphic arts
15 producer's accumulated purchase credit. Certification may be
16 incorporated into the manufacturer's or graphic arts
17 producer's purchase order. Manufacturer's Purchase Credit
18 certification by the manufacturer or graphic arts producer
19 may be used to satisfy the retailer's or serviceman's
20 liability under the Retailers' Occupation Tax Act or Service
21 Occupation Tax Act for the credit claimed, not to exceed
22 6.25% of the receipts subject to tax from a qualifying
23 purchase, but only if the retailer or serviceman reports the
24 Manufacturer's Purchase Credit claimed as required by the
25 Department. The Manufacturer's Purchase Credit earned by
26 purchase of exempt manufacturing machinery and equipment or
27 graphic arts machinery and equipment is a non-transferable
28 credit. A manufacturer or graphic arts producer that enters
29 into a contract involving the installation of tangible
30 personal property into real estate within a manufacturing or
31 graphic arts production facility may authorize a construction
32 contractor to utilize credit accumulated by the manufacturer
33 or graphic arts producer to purchase the tangible personal
34 property. A manufacturer or graphic arts producer intending
-11- LRB9215315SMks
1 to use accumulated credit to purchase such tangible personal
2 property shall execute a written contract authorizing the
3 contractor to utilize a specified dollar amount of credit.
4 The contractor shall furnish the supplier with the
5 manufacturer's or graphic arts producer's name, registration
6 or resale number, and a statement that a specific amount of
7 the Use Tax or Service Use Tax liability, not to exceed 6.25%
8 of the selling price, is being satisfied with the credit. The
9 manufacturer or graphic arts producer shall remain liable to
10 timely report all information required by the annual Report
11 of Manufacturer's Purchase Credit Used for credit utilized by
12 a construction contractor.
13 The Manufacturer's Purchase Credit may be used to satisfy
14 liability under the Use Tax Act or the Service Use Tax Act
15 due on the purchase of production related tangible personal
16 property (including purchases by a manufacturer, by a graphic
17 arts producer, or a lessor who rents or leases the use of the
18 property to a manufacturer or graphic arts producer) that
19 does not otherwise qualify for the manufacturing machinery
20 and equipment exemption or the graphic arts machinery and
21 equipment exemption. "Production related tangible personal
22 property" means (i) all tangible personal property used or
23 consumed by the purchaser in a manufacturing facility in
24 which a manufacturing process described in Section 2-45 of
25 the Retailers' Occupation Tax Act takes place, including
26 tangible personal property purchased for incorporation into
27 real estate within a manufacturing facility and including,
28 but not limited to, tangible personal property used or
29 consumed in activities such as pre-production material
30 handling, receiving, quality control, inventory control,
31 storage, staging, and packaging for shipping and
32 transportation purposes; (ii) all tangible personal property
33 used or consumed by the purchaser in a graphic arts facility
34 in which graphic arts production as described in Section 2-30
-12- LRB9215315SMks
1 of the Retailers' Occupation Tax Act takes place, including
2 tangible personal property purchased for incorporation into
3 real estate within a graphic arts facility and including, but
4 not limited to, all tangible personal property used or
5 consumed in activities such as graphic arts preliminary or
6 pre-press production, pre-production material handling,
7 receiving, quality control, inventory control, storage,
8 staging, sorting, labeling, mailing, tying, wrapping, and
9 packaging; and (iii) all tangible personal property used or
10 consumed by the purchaser for research and development.
11 "Production related tangible personal property" does not
12 include (i) tangible personal property used, within or
13 without a manufacturing or graphic arts facility, in sales,
14 purchasing, accounting, fiscal management, marketing,
15 personnel recruitment or selection, or landscaping or (ii)
16 tangible personal property required to be titled or
17 registered with a department, agency, or unit of federal,
18 state, or local government. The Manufacturer's Purchase
19 Credit may be used to satisfy the tax arising either from the
20 purchase of machinery and equipment on or after January 1,
21 1995 for which the manufacturing machinery and equipment
22 exemption provided by Section 2 of this Act was erroneously
23 claimed, or the purchase of machinery and equipment on or
24 after July 1, 1996 for which the exemption provided by
25 paragraph (5) of Section 3-5 of this Act was erroneously
26 claimed, but not in satisfaction of penalty, if any, and
27 interest for failure to pay the tax when due. A purchaser of
28 production related tangible personal property who is required
29 to pay Illinois Use Tax or Service Use Tax on the purchase
30 directly to the Department may utilize the Manufacturer's
31 Purchase Credit in satisfaction of the tax arising from that
32 purchase, but not in satisfaction of penalty and interest. A
33 purchaser who uses the Manufacturer's Purchase Credit to
34 purchase property which is later determined not to be
-13- LRB9215315SMks
1 production related tangible personal property may be liable
2 for tax, penalty, and interest on the purchase of that
3 property as of the date of purchase but shall be entitled to
4 use the disallowed Manufacturer's Purchase Credit, so long as
5 it has not expired, on qualifying purchases of production
6 related tangible personal property not previously subject to
7 credit usage. The Manufacturer's Purchase Credit earned by a
8 manufacturer or graphic arts producer expires the last day of
9 the second calendar year following the calendar year in which
10 the credit arose.
11 A purchaser earning Manufacturer's Purchase Credit shall
12 sign and file an annual Report of Manufacturer's Purchase
13 Credit Earned for each calendar year no later than the last
14 day of the sixth month following the calendar year in which a
15 Manufacturer's Purchase Credit is earned. A Report of
16 Manufacturer's Purchase Credit Earned shall be filed on forms
17 as prescribed or approved by the Department and shall state,
18 for each month of the calendar year: (i) the total purchase
19 price of all purchases of exempt manufacturing or graphic
20 arts machinery on which the credit was earned; (ii) the total
21 State Use Tax or Service Use Tax which would have been due on
22 those items; (iii) the percentage used to calculate the
23 amount of credit earned; (iv) the amount of credit earned;
24 and (v) such other information as the Department may
25 reasonably require. A purchaser earning Manufacturer's
26 Purchase Credit shall maintain records which identify, as to
27 each purchase of manufacturing or graphic arts machinery and
28 equipment on which the purchaser earned Manufacturer's
29 Purchase Credit, the vendor (including, if applicable, either
30 the vendor's registration number or Federal Employer
31 Identification Number), the purchase price, and the amount of
32 Manufacturer's Purchase Credit earned on each purchase.
33 A purchaser using Manufacturer's Purchase Credit shall
34 sign and file an annual Report of Manufacturer's Purchase
-14- LRB9215315SMks
1 Credit Used for each calendar year no later than the last day
2 of the sixth month following the calendar year in which a
3 Manufacturer's Purchase Credit is used. A Report of
4 Manufacturer's Purchase Credit Used shall be filed on forms
5 as prescribed or approved by the Department and shall state,
6 for each month of the calendar year: (i) the total purchase
7 price of production related tangible personal property
8 purchased from Illinois suppliers; (ii) the total purchase
9 price of production related tangible personal property
10 purchased from out-of-state suppliers; (iii) the total amount
11 of credit used during such month; and (iv) such other
12 information as the Department may reasonably require. A
13 purchaser using Manufacturer's Purchase Credit shall maintain
14 records that identify, as to each purchase of production
15 related tangible personal property on which the purchaser
16 used Manufacturer's Purchase Credit, the vendor (including,
17 if applicable, either the vendor's registration number or
18 Federal Employer Identification Number), the purchase price,
19 and the amount of Manufacturer's Purchase Credit used on each
20 purchase.
21 No annual report shall be filed before May 1, 1996. A
22 purchaser that fails to file an annual Report of
23 Manufacturer's Purchase Credit Earned or an annual Report of
24 Manufacturer's Purchase Credit Used by the last day of the
25 sixth month following the end of the calendar year shall
26 forfeit all Manufacturer's Purchase Credit for that calendar
27 year unless it establishes that its failure to file was due
28 to reasonable cause. Manufacturer's Purchase Credit reports
29 may be amended to report and claim credit on qualifying
30 purchases not previously reported at any time before the
31 credit would have expired, unless both the Department and the
32 purchaser have agreed to an extension of the statute of
33 limitations for the issuance of a notice of tax liability as
34 provided in Section 4 of the Retailers' Occupation Tax Act.
-15- LRB9215315SMks
1 If the time for assessment or refund has been extended, then
2 amended reports for a calendar year may be filed at any time
3 prior to the date to which the statute of limitations for the
4 calendar year or portion thereof has been extended. No
5 Manufacturer's Purchase Credit report filed with the
6 Department for periods prior to January 1, 1995 shall be
7 approved. Manufacturer's Purchase Credit claimed on an
8 amended report may be used to satisfy tax liability under the
9 Use Tax Act or the Service Use Tax Act (i) on qualifying
10 purchases of production related tangible personal property
11 made after the date the amended report is filed or (ii)
12 assessed by the Department on qualifying purchases of
13 production related tangible personal property made in the
14 case of manufacturers on or after January 1, 1995, or in the
15 case of graphic arts producers on or after July 1, 1996.
16 If the purchaser is not the manufacturer or a graphic
17 arts producer, but rents or leases the use of the property to
18 a manufacturer or a graphic arts producer, the purchaser may
19 earn, report, and use Manufacturer's Purchase Credit in the
20 same manner as a manufacturer or graphic arts producer.
21 A purchaser shall not be entitled to any Manufacturer's
22 Purchase Credit for a purchase that is required to be
23 reported and is not timely reported as provided in this
24 Section. A purchaser remains liable for (i) any tax that was
25 satisfied by use of a Manufacturer's Purchase Credit, as of
26 the date of purchase, if that use is not timely reported as
27 required in this Section and (ii) for any applicable
28 penalties and interest for failing to pay the tax when due.
29 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
30 89-531, eff. 7-19-96; 90-166, eff. 7-23-97.)