Illinois-2017-SB3578-Introduced

100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 SB3578

Introduced 2/16/2018, by Sen. Napoleon Harris, III

SYNOPSIS AS INTRODUCED:

`New Act`
`35 ILCS 5/201`	`from Ch. 120, par. 2-201`
`35 ILCS 105/3-5`
`35 ILCS 110/3-5`
`35 ILCS 115/3-5`
`35 ILCS 120/2-5`
`35 ILCS 120/5m new`
`35 ILCS 200/184.10 new`
`220 ILCS 5/9-222`	`from Ch. 111 2/3, par. 9-222`
`220 ILCS 5/9-222.1B new`

Creates the Big Empties Site Act. Provides that property located in the State consisting of one or more PINs but under common ownership at the time of the application, that contains at least one vacant and unused building of specified square footage, is qualified to be designated as a Big Empties Site. Provides that a county or municipality that has adopted an ordinance designating a qualified site as a Big Empties Site shall make written application to the Department of Commerce and Economic Opportunity to have that site certified by the Department as a Big Empties Site. Contains procedures for certification by the Department of Commerce and Economic Opportunity. Amends the Illinois Income Tax Act, the Use Tax Act, the Service Use Tax Act, and the Public Utilities Act to provide certain tax incentives for Big Empties Sites. Amends the Property Tax Code to provide that a taxing district may issue an abatement. Effective immediately.

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FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

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1 AN ACT concerning revenue.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 1. Short title. This Act may be cited as the Big

5 Empties Site Act.

6 Section 5. Definitions. As used in this Act:

7 "Department" means the Department of Commerce and Economic

8 Opportunity.

9 "Qualified site" means property located in the State

10 consisting of one or more PINs but under common ownership at

11 the time of the application that contains at least one vacant

12 and unused building of (i) 1,000,000 square feet or greater in

13 Cook, DuPage, Kane, Kendall, Lake, McHenry, or Will County or

14 (ii) 500,000 square feet or greater in any other county.

15 Section 10. Site designation; application. A county or

16 municipality that has adopted an ordinance designating a

17 qualified site as a Big Empties Site shall make written

18 application to the Department to have that site certified by

19 the Department as a Big Empties Site. The application shall

20 include a copy of the ordinance designating the proposed site

21 and such other information as the Department may, by rule,

22 require. All applications which are to be considered and acted

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1 upon by the Department during a calendar year must be received

2 by the Department no later than December 31 of the preceding

3 calendar year. Any application received after December 31 of

4 any calendar year shall be held by the Department for

5 consideration and action during the following calendar year.

6 Section 15. Certification. Certification of a

7 Department-approved Big Empties Site shall be made by the

8 Department by certification of the designating ordinance. The

9 Department shall promptly issue a certificate for site upon

10 approval. The certificate shall be signed by the Director of

11 the Department, shall make specific reference to the

12 designating ordinance, which shall be attached thereto, and

13 shall be filed in the office of the Secretary of State. A

14 certified copy of the certificate, or a duplicate original

15 thereof, shall be recorded in the office of recorder of deeds

16 of the county in which the site lies. Such certification shall

17 have a term of no greater than 15 years.

18 Section 900. The Illinois Income Tax Act is amended by

19 changing Section 201 as follows:

20 (35 ILCS 5/201) (from Ch. 120, par. 2-201)

21 Sec. 201. Tax imposed.

22 (a) In general. A tax measured by net income is hereby

23 imposed on every individual, corporation, trust and estate for

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1 each taxable year ending after July 31, 1969 on the privilege

2 of earning or receiving income in or as a resident of this

3 State. Such tax shall be in addition to all other occupation or

4 privilege taxes imposed by this State or by any municipal

5 corporation or political subdivision thereof.

6 (b) Rates. The tax imposed by subsection (a) of this

7 Section shall be determined as follows, except as adjusted by

8 subsection (d-1):

9 (1) In the case of an individual, trust or estate, for

10 taxable years ending prior to July 1, 1989, an amount equal

11 to 2 1/2% of the taxpayer's net income for the taxable

12 year.

13 (2) In the case of an individual, trust or estate, for

14 taxable years beginning prior to July 1, 1989 and ending

15 after June 30, 1989, an amount equal to the sum of (i) 2

16 1/2% of the taxpayer's net income for the period prior to

17 July 1, 1989, as calculated under Section 202.3, and (ii)

18 3% of the taxpayer's net income for the period after June

19 30, 1989, as calculated under Section 202.3.

20 (3) In the case of an individual, trust or estate, for

21 taxable years beginning after June 30, 1989, and ending

22 prior to January 1, 2011, an amount equal to 3% of the

23 taxpayer's net income for the taxable year.

24 (4) In the case of an individual, trust, or estate, for

25 taxable years beginning prior to January 1, 2011, and

26 ending after December 31, 2010, an amount equal to the sum

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1 of (i) 3% of the taxpayer's net income for the period prior

2 to January 1, 2011, as calculated under Section 202.5, and

3 (ii) 5% of the taxpayer's net income for the period after

4 December 31, 2010, as calculated under Section 202.5.

5 (5) In the case of an individual, trust, or estate, for

6 taxable years beginning on or after January 1, 2011, and

7 ending prior to January 1, 2015, an amount equal to 5% of

8 the taxpayer's net income for the taxable year.

9 (5.1) In the case of an individual, trust, or estate,

10 for taxable years beginning prior to January 1, 2015, and

11 ending after December 31, 2014, an amount equal to the sum

12 of (i) 5% of the taxpayer's net income for the period prior

13 to January 1, 2015, as calculated under Section 202.5, and

14 (ii) 3.75% of the taxpayer's net income for the period

15 after December 31, 2014, as calculated under Section 202.5.

16 (5.2) In the case of an individual, trust, or estate,

17 for taxable years beginning on or after January 1, 2015,

18 and ending prior to July 1, 2017, an amount equal to 3.75%

19 of the taxpayer's net income for the taxable year.

20 (5.3) In the case of an individual, trust, or estate,

21 for taxable years beginning prior to July 1, 2017, and

22 ending after June 30, 2017, an amount equal to the sum of

23 (i) 3.75% of the taxpayer's net income for the period prior

24 to July 1, 2017, as calculated under Section 202.5, and

25 (ii) 4.95% of the taxpayer's net income for the period

26 after June 30, 2017, as calculated under Section 202.5.

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1 (5.4) In the case of an individual, trust, or estate,

2 for taxable years beginning on or after July 1, 2017, an

3 amount equal to 4.95% of the taxpayer's net income for the

4 taxable year.

5 (6) In the case of a corporation, for taxable years

6 ending prior to July 1, 1989, an amount equal to 4% of the

7 taxpayer's net income for the taxable year.

8 (7) In the case of a corporation, for taxable years

9 beginning prior to July 1, 1989 and ending after June 30,

10 1989, an amount equal to the sum of (i) 4% of the

11 taxpayer's net income for the period prior to July 1, 1989,

12 as calculated under Section 202.3, and (ii) 4.8% of the

13 taxpayer's net income for the period after June 30, 1989,

14 as calculated under Section 202.3.

15 (8) In the case of a corporation, for taxable years

16 beginning after June 30, 1989, and ending prior to January

17 1, 2011, an amount equal to 4.8% of the taxpayer's net

18 income for the taxable year.

19 (9) In the case of a corporation, for taxable years

20 beginning prior to January 1, 2011, and ending after

21 December 31, 2010, an amount equal to the sum of (i) 4.8%

22 of the taxpayer's net income for the period prior to

23 January 1, 2011, as calculated under Section 202.5, and

24 (ii) 7% of the taxpayer's net income for the period after

25 December 31, 2010, as calculated under Section 202.5.

26 (10) In the case of a corporation, for taxable years

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1 beginning on or after January 1, 2011, and ending prior to

2 January 1, 2015, an amount equal to 7% of the taxpayer's

3 net income for the taxable year.

4 (11) In the case of a corporation, for taxable years

5 beginning prior to January 1, 2015, and ending after

6 December 31, 2014, an amount equal to the sum of (i) 7% of

7 the taxpayer's net income for the period prior to January

8 1, 2015, as calculated under Section 202.5, and (ii) 5.25%

9 of the taxpayer's net income for the period after December

10 31, 2014, as calculated under Section 202.5.

11 (12) In the case of a corporation, for taxable years

12 beginning on or after January 1, 2015, and ending prior to

13 July 1, 2017, an amount equal to 5.25% of the taxpayer's

14 net income for the taxable year.

15 (13) In the case of a corporation, for taxable years

16 beginning prior to July 1, 2017, and ending after June 30,

17 2017, an amount equal to the sum of (i) 5.25% of the

18 taxpayer's net income for the period prior to July 1, 2017,

19 as calculated under Section 202.5, and (ii) 7% of the

20 taxpayer's net income for the period after June 30, 2017,

21 as calculated under Section 202.5.

22 (14) In the case of a corporation, for taxable years

23 beginning on or after July 1, 2017, an amount equal to 7%

24 of the taxpayer's net income for the taxable year.

25 The rates under this subsection (b) are subject to the

26 provisions of Section 201.5.

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1 (c) Personal Property Tax Replacement Income Tax.

2 Beginning on July 1, 1979 and thereafter, in addition to such

3 income tax, there is also hereby imposed the Personal Property

4 Tax Replacement Income Tax measured by net income on every

5 corporation (including Subchapter S corporations), partnership

6 and trust, for each taxable year ending after June 30, 1979.

7 Such taxes are imposed on the privilege of earning or receiving

8 income in or as a resident of this State. The Personal Property

9 Tax Replacement Income Tax shall be in addition to the income

10 tax imposed by subsections (a) and (b) of this Section and in

11 addition to all other occupation or privilege taxes imposed by

12 this State or by any municipal corporation or political

13 subdivision thereof.

14 (d) Additional Personal Property Tax Replacement Income

15 Tax Rates. The personal property tax replacement income tax

16 imposed by this subsection and subsection (c) of this Section

17 in the case of a corporation, other than a Subchapter S

18 corporation and except as adjusted by subsection (d-1), shall

19 be an additional amount equal to 2.85% of such taxpayer's net

20 income for the taxable year, except that beginning on January

21 1, 1981, and thereafter, the rate of 2.85% specified in this

22 subsection shall be reduced to 2.5%, and in the case of a

23 partnership, trust or a Subchapter S corporation shall be an

24 additional amount equal to 1.5% of such taxpayer's net income

25 for the taxable year.

26 (d-1) Rate reduction for certain foreign insurers. In the

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1 case of a foreign insurer, as defined by Section 35A-5 of the

2 Illinois Insurance Code, whose state or country of domicile

3 imposes on insurers domiciled in Illinois a retaliatory tax

4 (excluding any insurer whose premiums from reinsurance assumed

5 are 50% or more of its total insurance premiums as determined

6 under paragraph (2) of subsection (b) of Section 304, except

7 that for purposes of this determination premiums from

8 reinsurance do not include premiums from inter-affiliate

9 reinsurance arrangements), beginning with taxable years ending

10 on or after December 31, 1999, the sum of the rates of tax

11 imposed by subsections (b) and (d) shall be reduced (but not

12 increased) to the rate at which the total amount of tax imposed

13 under this Act, net of all credits allowed under this Act,

14 shall equal (i) the total amount of tax that would be imposed

15 on the foreign insurer's net income allocable to Illinois for

16 the taxable year by such foreign insurer's state or country of

17 domicile if that net income were subject to all income taxes

18 and taxes measured by net income imposed by such foreign

19 insurer's state or country of domicile, net of all credits

20 allowed or (ii) a rate of zero if no such tax is imposed on such

21 income by the foreign insurer's state of domicile. For the

22 purposes of this subsection (d-1), an inter-affiliate includes

23 a mutual insurer under common management.

24 (1) For the purposes of subsection (d-1), in no event

25 shall the sum of the rates of tax imposed by subsections

26 (b) and (d) be reduced below the rate at which the sum of:

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1 (A) the total amount of tax imposed on such foreign

2 insurer under this Act for a taxable year, net of all

3 credits allowed under this Act, plus

4 (B) the privilege tax imposed by Section 409 of the

5 Illinois Insurance Code, the fire insurance company

6 tax imposed by Section 12 of the Fire Investigation

7 Act, and the fire department taxes imposed under

8 Section 11-10-1 of the Illinois Municipal Code,

9 equals 1.25% for taxable years ending prior to December 31,

10 2003, or 1.75% for taxable years ending on or after

11 December 31, 2003, of the net taxable premiums written for

12 the taxable year, as described by subsection (1) of Section

13 409 of the Illinois Insurance Code. This paragraph will in

14 no event increase the rates imposed under subsections (b)

15 and (d).

16 (2) Any reduction in the rates of tax imposed by this

17 subsection shall be applied first against the rates imposed

18 by subsection (b) and only after the tax imposed by

19 subsection (a) net of all credits allowed under this

20 Section other than the credit allowed under subsection (i)

21 has been reduced to zero, against the rates imposed by

22 subsection (d).

23 This subsection (d-1) is exempt from the provisions of

24 Section 250.

25 (e) Investment credit. A taxpayer shall be allowed a credit

26 against the Personal Property Tax Replacement Income Tax for

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1 investment in qualified property.

2 (1) A taxpayer shall be allowed a credit equal to .5%

3 of the basis of qualified property placed in service during

4 the taxable year, provided such property is placed in

5 service on or after July 1, 1984. There shall be allowed an

6 additional credit equal to .5% of the basis of qualified

7 property placed in service during the taxable year,

8 provided such property is placed in service on or after

9 July 1, 1986, and the taxpayer's base employment within

10 Illinois has increased by 1% or more over the preceding

11 year as determined by the taxpayer's employment records

12 filed with the Illinois Department of Employment Security.

13 Taxpayers who are new to Illinois shall be deemed to have

14 met the 1% growth in base employment for the first year in

15 which they file employment records with the Illinois

16 Department of Employment Security. The provisions added to

17 this Section by Public Act 85-1200 (and restored by Public

18 Act 87-895) shall be construed as declaratory of existing

19 law and not as a new enactment. If, in any year, the

20 increase in base employment within Illinois over the

21 preceding year is less than 1%, the additional credit shall

22 be limited to that percentage times a fraction, the

23 numerator of which is .5% and the denominator of which is

24 1%, but shall not exceed .5%. The investment credit shall

25 not be allowed to the extent that it would reduce a

26 taxpayer's liability in any tax year below zero, nor may

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1 any credit for qualified property be allowed for any year

2 other than the year in which the property was placed in

3 service in Illinois. For tax years ending on or after

4 December 31, 1987, and on or before December 31, 1988, the

5 credit shall be allowed for the tax year in which the

6 property is placed in service, or, if the amount of the

7 credit exceeds the tax liability for that year, whether it

8 exceeds the original liability or the liability as later

9 amended, such excess may be carried forward and applied to

10 the tax liability of the 5 taxable years following the

11 excess credit years if the taxpayer (i) makes investments

12 which cause the creation of a minimum of 2,000 full-time

13 equivalent jobs in Illinois, (ii) is located in an

14 enterprise zone established pursuant to the Illinois

15 Enterprise Zone Act and (iii) is certified by the

16 Department of Commerce and Community Affairs (now

17 Department of Commerce and Economic Opportunity) as

18 complying with the requirements specified in clause (i) and

19 (ii) by July 1, 1986. The Department of Commerce and

20 Community Affairs (now Department of Commerce and Economic

21 Opportunity) shall notify the Department of Revenue of all

22 such certifications immediately. For tax years ending

23 after December 31, 1988, the credit shall be allowed for

24 the tax year in which the property is placed in service,

25 or, if the amount of the credit exceeds the tax liability

26 for that year, whether it exceeds the original liability or

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1 the liability as later amended, such excess may be carried

2 forward and applied to the tax liability of the 5 taxable

3 years following the excess credit years. The credit shall

4 be applied to the earliest year for which there is a

5 liability. If there is credit from more than one tax year

6 that is available to offset a liability, earlier credit

7 shall be applied first.

8 (2) The term "qualified property" means property

9 which:

10 (A) is tangible, whether new or used, including

11 buildings and structural components of buildings and

12 signs that are real property, but not including land or

13 improvements to real property that are not a structural

14 component of a building such as landscaping, sewer

15 lines, local access roads, fencing, parking lots, and

16 other appurtenances;

17 (B) is depreciable pursuant to Section 167 of the

18 Internal Revenue Code, except that "3-year property"

19 as defined in Section 168(c)(2)(A) of that Code is not

20 eligible for the credit provided by this subsection

21 (e);

22 (C) is acquired by purchase as defined in Section

23 179(d) of the Internal Revenue Code;

24 (D) is used in Illinois by a taxpayer who is

25 primarily engaged in manufacturing, or in mining coal

26 or fluorite, or in retailing, or was placed in service

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1 on or after July 1, 2006 in a River Edge Redevelopment

2 Zone established pursuant to the River Edge

3 Redevelopment Zone Act; and

4 (E) has not previously been used in Illinois in

5 such a manner and by such a person as would qualify for

6 the credit provided by this subsection (e) or

7 subsection (f).

8 (3) For purposes of this subsection (e),

9 "manufacturing" means the material staging and production

10 of tangible personal property by procedures commonly

11 regarded as manufacturing, processing, fabrication, or

12 assembling which changes some existing material into new

13 shapes, new qualities, or new combinations. For purposes of

14 this subsection (e) the term "mining" shall have the same

15 meaning as the term "mining" in Section 613(c) of the

16 Internal Revenue Code. For purposes of this subsection (e),

17 the term "retailing" means the sale of tangible personal

18 property for use or consumption and not for resale, or

19 services rendered in conjunction with the sale of tangible

20 personal property for use or consumption and not for

21 resale. For purposes of this subsection (e), "tangible

22 personal property" has the same meaning as when that term

23 is used in the Retailers' Occupation Tax Act, and, for

24 taxable years ending after December 31, 2008, does not

25 include the generation, transmission, or distribution of

26 electricity.

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1 (4) The basis of qualified property shall be the basis

2 used to compute the depreciation deduction for federal

3 income tax purposes.

4 (5) If the basis of the property for federal income tax

5 depreciation purposes is increased after it has been placed

6 in service in Illinois by the taxpayer, the amount of such

7 increase shall be deemed property placed in service on the

8 date of such increase in basis.

9 (6) The term "placed in service" shall have the same

10 meaning as under Section 46 of the Internal Revenue Code.

11 (7) If during any taxable year, any property ceases to

12 be qualified property in the hands of the taxpayer within

13 48 months after being placed in service, or the situs of

14 any qualified property is moved outside Illinois within 48

15 months after being placed in service, the Personal Property

16 Tax Replacement Income Tax for such taxable year shall be

17 increased. Such increase shall be determined by (i)

18 recomputing the investment credit which would have been

19 allowed for the year in which credit for such property was

20 originally allowed by eliminating such property from such

21 computation and, (ii) subtracting such recomputed credit

22 from the amount of credit previously allowed. For the

23 purposes of this paragraph (7), a reduction of the basis of

24 qualified property resulting from a redetermination of the

25 purchase price shall be deemed a disposition of qualified

26 property to the extent of such reduction.

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1 (8) Unless the investment credit is extended by law,

2 the basis of qualified property shall not include costs

3 incurred after December 31, 2018, except for costs incurred

4 pursuant to a binding contract entered into on or before

5 December 31, 2018.

6 (9) Each taxable year ending before December 31, 2000,

7 a partnership may elect to pass through to its partners the

8 credits to which the partnership is entitled under this

9 subsection (e) for the taxable year. A partner may use the

10 credit allocated to him or her under this paragraph only

11 against the tax imposed in subsections (c) and (d) of this

12 Section. If the partnership makes that election, those

13 credits shall be allocated among the partners in the

14 partnership in accordance with the rules set forth in

15 Section 704(b) of the Internal Revenue Code, and the rules

16 promulgated under that Section, and the allocated amount of

17 the credits shall be allowed to the partners for that

18 taxable year. The partnership shall make this election on

19 its Personal Property Tax Replacement Income Tax return for

20 that taxable year. The election to pass through the credits

21 shall be irrevocable.

22 For taxable years ending on or after December 31, 2000,

23 a partner that qualifies its partnership for a subtraction

24 under subparagraph (I) of paragraph (2) of subsection (d)

25 of Section 203 or a shareholder that qualifies a Subchapter

26 S corporation for a subtraction under subparagraph (S) of

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1 paragraph (2) of subsection (b) of Section 203 shall be

2 allowed a credit under this subsection (e) equal to its

3 share of the credit earned under this subsection (e) during

4 the taxable year by the partnership or Subchapter S

5 corporation, determined in accordance with the

6 determination of income and distributive share of income

7 under Sections 702 and 704 and Subchapter S of the Internal

8 Revenue Code. This paragraph is exempt from the provisions

9 of Section 250.

10 (f) Investment credit; Enterprise Zone; River Edge

11 Redevelopment Zone.

12 (1) A taxpayer shall be allowed a credit against the

13 tax imposed by subsections (a) and (b) of this Section for

14 investment in qualified property which is placed in service

15 in an Enterprise Zone created pursuant to the Illinois

16 Enterprise Zone Act or, for property placed in service on

17 or after July 1, 2006, a River Edge Redevelopment Zone

18 established pursuant to the River Edge Redevelopment Zone

19 Act. For partners, shareholders of Subchapter S

20 corporations, and owners of limited liability companies,

21 if the liability company is treated as a partnership for

22 purposes of federal and State income taxation, there shall

23 be allowed a credit under this subsection (f) to be

24 determined in accordance with the determination of income

25 and distributive share of income under Sections 702 and 704

26 and Subchapter S of the Internal Revenue Code. The credit

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1 shall be .5% of the basis for such property. The credit

2 shall be available only in the taxable year in which the

3 property is placed in service in the Enterprise Zone or

4 River Edge Redevelopment Zone and shall not be allowed to

5 the extent that it would reduce a taxpayer's liability for

6 the tax imposed by subsections (a) and (b) of this Section

7 to below zero. For tax years ending on or after December

8 31, 1985, the credit shall be allowed for the tax year in

9 which the property is placed in service, or, if the amount

10 of the credit exceeds the tax liability for that year,

11 whether it exceeds the original liability or the liability

12 as later amended, such excess may be carried forward and

13 applied to the tax liability of the 5 taxable years

14 following the excess credit year. The credit shall be

15 applied to the earliest year for which there is a

16 liability. If there is credit from more than one tax year

17 that is available to offset a liability, the credit

18 accruing first in time shall be applied first.

19 (2) The term qualified property means property which:

20 (A) is tangible, whether new or used, including

21 buildings and structural components of buildings;

22 (B) is depreciable pursuant to Section 167 of the

23 Internal Revenue Code, except that "3-year property"

24 as defined in Section 168(c)(2)(A) of that Code is not

25 eligible for the credit provided by this subsection

26 (f);

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1 (C) is acquired by purchase as defined in Section

2 179(d) of the Internal Revenue Code;

3 (D) is used in the Enterprise Zone or River Edge

4 Redevelopment Zone by the taxpayer; and

5 (E) has not been previously used in Illinois in

6 such a manner and by such a person as would qualify for

7 the credit provided by this subsection (f) or

8 subsection (e).

9 (3) The basis of qualified property shall be the basis

10 used to compute the depreciation deduction for federal

11 income tax purposes.

12 (4) If the basis of the property for federal income tax

13 depreciation purposes is increased after it has been placed

14 in service in the Enterprise Zone or River Edge

15 Redevelopment Zone by the taxpayer, the amount of such

16 increase shall be deemed property placed in service on the

17 date of such increase in basis.

18 (5) The term "placed in service" shall have the same

19 meaning as under Section 46 of the Internal Revenue Code.

20 (6) If during any taxable year, any property ceases to

21 be qualified property in the hands of the taxpayer within

22 48 months after being placed in service, or the situs of

23 any qualified property is moved outside the Enterprise Zone

24 or River Edge Redevelopment Zone within 48 months after

25 being placed in service, the tax imposed under subsections

26 (a) and (b) of this Section for such taxable year shall be

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1 increased. Such increase shall be determined by (i)

2 recomputing the investment credit which would have been

3 allowed for the year in which credit for such property was

4 originally allowed by eliminating such property from such

5 computation, and (ii) subtracting such recomputed credit

6 from the amount of credit previously allowed. For the

7 purposes of this paragraph (6), a reduction of the basis of

8 qualified property resulting from a redetermination of the

9 purchase price shall be deemed a disposition of qualified

10 property to the extent of such reduction.

11 (7) There shall be allowed an additional credit equal

12 to 0.5% of the basis of qualified property placed in

13 service during the taxable year in a River Edge

14 Redevelopment Zone, provided such property is placed in

15 service on or after July 1, 2006, and the taxpayer's base

16 employment within Illinois has increased by 1% or more over

17 the preceding year as determined by the taxpayer's

18 employment records filed with the Illinois Department of

19 Employment Security. Taxpayers who are new to Illinois

20 shall be deemed to have met the 1% growth in base

21 employment for the first year in which they file employment

22 records with the Illinois Department of Employment

23 Security. If, in any year, the increase in base employment

24 within Illinois over the preceding year is less than 1%,

25 the additional credit shall be limited to that percentage

26 times a fraction, the numerator of which is 0.5% and the

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1 denominator of which is 1%, but shall not exceed 0.5%.

2 (g) (Blank).

3 (h) Investment credit; High Impact Business.

4 (1) Subject to subsections (b) and (b-5) of Section 5.5

5 of the Illinois Enterprise Zone Act, a taxpayer shall be

6 allowed a credit against the tax imposed by subsections (a)

7 and (b) of this Section for investment in qualified

8 property which is placed in service by a Department of

9 Commerce and Economic Opportunity designated High Impact

10 Business. The credit shall be .5% of the basis for such

11 property. The credit shall not be available (i) until the

12 minimum investments in qualified property set forth in

13 subdivision (a)(3)(A) of Section 5.5 of the Illinois

14 Enterprise Zone Act have been satisfied or (ii) until the

15 time authorized in subsection (b-5) of the Illinois

16 Enterprise Zone Act for entities designated as High Impact

17 Businesses under subdivisions (a)(3)(B), (a)(3)(C), and

18 (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone

19 Act, and shall not be allowed to the extent that it would

20 reduce a taxpayer's liability for the tax imposed by

21 subsections (a) and (b) of this Section to below zero. The

22 credit applicable to such investments shall be taken in the

23 taxable year in which such investments have been completed.

24 The credit for additional investments beyond the minimum

25 investment by a designated high impact business authorized

26 under subdivision (a)(3)(A) of Section 5.5 of the Illinois

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1 Enterprise Zone Act shall be available only in the taxable

2 year in which the property is placed in service and shall

3 not be allowed to the extent that it would reduce a

4 taxpayer's liability for the tax imposed by subsections (a)

5 and (b) of this Section to below zero. For tax years ending

6 on or after December 31, 1987, the credit shall be allowed

7 for the tax year in which the property is placed in

8 service, or, if the amount of the credit exceeds the tax

9 liability for that year, whether it exceeds the original

10 liability or the liability as later amended, such excess

11 may be carried forward and applied to the tax liability of

12 the 5 taxable years following the excess credit year. The

13 credit shall be applied to the earliest year for which

14 there is a liability. If there is credit from more than one

15 tax year that is available to offset a liability, the

16 credit accruing first in time shall be applied first.

17 Changes made in this subdivision (h)(1) by Public Act

18 88-670 restore changes made by Public Act 85-1182 and

19 reflect existing law.

20 (2) The term qualified property means property which:

21 (A) is tangible, whether new or used, including

22 buildings and structural components of buildings;

23 (B) is depreciable pursuant to Section 167 of the

24 Internal Revenue Code, except that "3-year property"

25 as defined in Section 168(c)(2)(A) of that Code is not

26 eligible for the credit provided by this subsection

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1 (h);

2 (C) is acquired by purchase as defined in Section

3 179(d) of the Internal Revenue Code; and

4 (D) is not eligible for the Enterprise Zone

5 Investment Credit provided by subsection (f) of this

6 Section.

7 (3) The basis of qualified property shall be the basis

8 used to compute the depreciation deduction for federal

9 income tax purposes.

10 (4) If the basis of the property for federal income tax

11 depreciation purposes is increased after it has been placed

12 in service in a federally designated Foreign Trade Zone or

13 Sub-Zone located in Illinois by the taxpayer, the amount of

14 such increase shall be deemed property placed in service on

15 the date of such increase in basis.

16 (5) The term "placed in service" shall have the same

17 meaning as under Section 46 of the Internal Revenue Code.

18 (6) If during any taxable year ending on or before

19 December 31, 1996, any property ceases to be qualified

20 property in the hands of the taxpayer within 48 months

21 after being placed in service, or the situs of any

22 qualified property is moved outside Illinois within 48

23 months after being placed in service, the tax imposed under

24 subsections (a) and (b) of this Section for such taxable

25 year shall be increased. Such increase shall be determined

26 by (i) recomputing the investment credit which would have

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1 been allowed for the year in which credit for such property

2 was originally allowed by eliminating such property from

3 such computation, and (ii) subtracting such recomputed

4 credit from the amount of credit previously allowed. For

5 the purposes of this paragraph (6), a reduction of the

6 basis of qualified property resulting from a

7 redetermination of the purchase price shall be deemed a

8 disposition of qualified property to the extent of such

9 reduction.

10 (7) Beginning with tax years ending after December 31,

11 1996, if a taxpayer qualifies for the credit under this

12 subsection (h) and thereby is granted a tax abatement and

13 the taxpayer relocates its entire facility in violation of

14 the explicit terms and length of the contract under Section

15 18-183 of the Property Tax Code, the tax imposed under

16 subsections (a) and (b) of this Section shall be increased

17 for the taxable year in which the taxpayer relocated its

18 facility by an amount equal to the amount of credit

19 received by the taxpayer under this subsection (h).

20 (h-1) Investment credit; Big Empties Site. For taxable

21 years beginning on or after January 1, 2019, a taxpayer shall

22 be allowed a credit against the tax imposed by subsections (a)

23 and (b) of this Section for investment in qualified property

24 which is placed in service by a Department of Commerce and

25 Economic Opportunity designated Big Empties Site. The credit

26 shall be .5% of the basis for such property. As used in this

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1 subsection (h-1), the terms "qualified property" and "placed in

2 service" have the same meanings as in subsection (h). This

3 subsection is exempt from the provisions of Section 250.

4 (i) Credit for Personal Property Tax Replacement Income

5 Tax. For tax years ending prior to December 31, 2003, a credit

6 shall be allowed against the tax imposed by subsections (a) and

7 (b) of this Section for the tax imposed by subsections (c) and

8 (d) of this Section. This credit shall be computed by

9 multiplying the tax imposed by subsections (c) and (d) of this

10 Section by a fraction, the numerator of which is base income

11 allocable to Illinois and the denominator of which is Illinois

12 base income, and further multiplying the product by the tax

13 rate imposed by subsections (a) and (b) of this Section.

14 Any credit earned on or after December 31, 1986 under this

15 subsection which is unused in the year the credit is computed

16 because it exceeds the tax liability imposed by subsections (a)

17 and (b) for that year (whether it exceeds the original

18 liability or the liability as later amended) may be carried

19 forward and applied to the tax liability imposed by subsections

20 (a) and (b) of the 5 taxable years following the excess credit

21 year, provided that no credit may be carried forward to any

22 year ending on or after December 31, 2003. This credit shall be

23 applied first to the earliest year for which there is a

24 liability. If there is a credit under this subsection from more

25 than one tax year that is available to offset a liability the

26 earliest credit arising under this subsection shall be applied

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1 first.

2 If, during any taxable year ending on or after December 31,

3 1986, the tax imposed by subsections (c) and (d) of this

4 Section for which a taxpayer has claimed a credit under this

5 subsection (i) is reduced, the amount of credit for such tax

6 shall also be reduced. Such reduction shall be determined by

7 recomputing the credit to take into account the reduced tax

8 imposed by subsections (c) and (d). If any portion of the

9 reduced amount of credit has been carried to a different

10 taxable year, an amended return shall be filed for such taxable

11 year to reduce the amount of credit claimed.

12 (j) Training expense credit. Beginning with tax years

13 ending on or after December 31, 1986 and prior to December 31,

14 2003, a taxpayer shall be allowed a credit against the tax

15 imposed by subsections (a) and (b) under this Section for all

16 amounts paid or accrued, on behalf of all persons employed by

17 the taxpayer in Illinois or Illinois residents employed outside

18 of Illinois by a taxpayer, for educational or vocational

19 training in semi-technical or technical fields or semi-skilled

20 or skilled fields, which were deducted from gross income in the

21 computation of taxable income. The credit against the tax

22 imposed by subsections (a) and (b) shall be 1.6% of such

23 training expenses. For partners, shareholders of subchapter S

24 corporations, and owners of limited liability companies, if the

25 liability company is treated as a partnership for purposes of

26 federal and State income taxation, there shall be allowed a

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1 credit under this subsection (j) to be determined in accordance

2 with the determination of income and distributive share of

3 income under Sections 702 and 704 and subchapter S of the

4 Internal Revenue Code.

5 Any credit allowed under this subsection which is unused in

6 the year the credit is earned may be carried forward to each of

7 the 5 taxable years following the year for which the credit is

8 first computed until it is used. This credit shall be applied

9 first to the earliest year for which there is a liability. If

10 there is a credit under this subsection from more than one tax

11 year that is available to offset a liability the earliest

12 credit arising under this subsection shall be applied first. No

13 carryforward credit may be claimed in any tax year ending on or

14 after December 31, 2003.

15 (k) Research and development credit. For tax years ending

16 after July 1, 1990 and prior to December 31, 2003, and

17 beginning again for tax years ending on or after December 31,

18 2004, and ending prior to January 1, 2022, a taxpayer shall be

19 allowed a credit against the tax imposed by subsections (a) and

20 (b) of this Section for increasing research activities in this

21 State. The credit allowed against the tax imposed by

22 subsections (a) and (b) shall be equal to 6 1/2% of the

23 qualifying expenditures for increasing research activities in

24 this State. For partners, shareholders of subchapter S

25 corporations, and owners of limited liability companies, if the

26 liability company is treated as a partnership for purposes of

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1 federal and State income taxation, there shall be allowed a

2 credit under this subsection to be determined in accordance

3 with the determination of income and distributive share of

4 income under Sections 702 and 704 and subchapter S of the

5 Internal Revenue Code.

6 For purposes of this subsection, "qualifying expenditures"

7 means the qualifying expenditures as defined for the federal

8 credit for increasing research activities which would be

9 allowable under Section 41 of the Internal Revenue Code and

10 which are conducted in this State, "qualifying expenditures for

11 increasing research activities in this State" means the excess

12 of qualifying expenditures for the taxable year in which

13 incurred over qualifying expenditures for the base period,

14 "qualifying expenditures for the base period" means the average

15 of the qualifying expenditures for each year in the base

16 period, and "base period" means the 3 taxable years immediately

17 preceding the taxable year for which the determination is being

18 made.

19 Any credit in excess of the tax liability for the taxable

20 year may be carried forward. A taxpayer may elect to have the

21 unused credit shown on its final completed return carried over

22 as a credit against the tax liability for the following 5

23 taxable years or until it has been fully used, whichever occurs

24 first; provided that no credit earned in a tax year ending

25 prior to December 31, 2003 may be carried forward to any year

26 ending on or after December 31, 2003.

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1 If an unused credit is carried forward to a given year from

2 2 or more earlier years, that credit arising in the earliest

3 year will be applied first against the tax liability for the

4 given year. If a tax liability for the given year still

5 remains, the credit from the next earliest year will then be

6 applied, and so on, until all credits have been used or no tax

7 liability for the given year remains. Any remaining unused

8 credit or credits then will be carried forward to the next

9 following year in which a tax liability is incurred, except

10 that no credit can be carried forward to a year which is more

11 than 5 years after the year in which the expense for which the

12 credit is given was incurred.

13 No inference shall be drawn from this amendatory Act of the

14 91st General Assembly in construing this Section for taxable

15 years beginning before January 1, 1999.

16 It is the intent of the General Assembly that the research

17 and development credit under this subsection (k) shall apply

18 continuously for all tax years ending on or after December 31,

19 2004 and ending prior to January 1, 2022, including, but not

20 limited to, the period beginning on January 1, 2016 and ending

21 on the effective date of this amendatory Act of the 100th

22 General Assembly. All actions taken in reliance on the

23 continuation of the credit under this subsection (k) by any

24 taxpayer are hereby validated.

25 (l) Environmental Remediation Tax Credit.

26 (i) For tax years ending after December 31, 1997 and on

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1 or before December 31, 2001, a taxpayer shall be allowed a

2 credit against the tax imposed by subsections (a) and (b)

3 of this Section for certain amounts paid for unreimbursed

4 eligible remediation costs, as specified in this

5 subsection. For purposes of this Section, "unreimbursed

6 eligible remediation costs" means costs approved by the

7 Illinois Environmental Protection Agency ("Agency") under

8 Section 58.14 of the Environmental Protection Act that were

9 paid in performing environmental remediation at a site for

10 which a No Further Remediation Letter was issued by the

11 Agency and recorded under Section 58.10 of the

12 Environmental Protection Act. The credit must be claimed

13 for the taxable year in which Agency approval of the

14 eligible remediation costs is granted. The credit is not

15 available to any taxpayer if the taxpayer or any related

16 party caused or contributed to, in any material respect, a

17 release of regulated substances on, in, or under the site

18 that was identified and addressed by the remedial action

19 pursuant to the Site Remediation Program of the

20 Environmental Protection Act. After the Pollution Control

21 Board rules are adopted pursuant to the Illinois

22 Administrative Procedure Act for the administration and

23 enforcement of Section 58.9 of the Environmental

24 Protection Act, determinations as to credit availability

25 for purposes of this Section shall be made consistent with

26 those rules. For purposes of this Section, "taxpayer"

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1 includes a person whose tax attributes the taxpayer has

2 succeeded to under Section 381 of the Internal Revenue Code

3 and "related party" includes the persons disallowed a

4 deduction for losses by paragraphs (b), (c), and (f)(1) of

5 Section 267 of the Internal Revenue Code by virtue of being

6 a related taxpayer, as well as any of its partners. The

7 credit allowed against the tax imposed by subsections (a)

8 and (b) shall be equal to 25% of the unreimbursed eligible

9 remediation costs in excess of $100,000 per site, except

10 that the $100,000 threshold shall not apply to any site

11 contained in an enterprise zone as determined by the

12 Department of Commerce and Community Affairs (now

13 Department of Commerce and Economic Opportunity). The

14 total credit allowed shall not exceed $40,000 per year with

15 a maximum total of $150,000 per site. For partners and

16 shareholders of subchapter S corporations, there shall be

17 allowed a credit under this subsection to be determined in

18 accordance with the determination of income and

19 distributive share of income under Sections 702 and 704 and

20 subchapter S of the Internal Revenue Code.

21 (ii) A credit allowed under this subsection that is

22 unused in the year the credit is earned may be carried

23 forward to each of the 5 taxable years following the year

24 for which the credit is first earned until it is used. The

25 term "unused credit" does not include any amounts of

26 unreimbursed eligible remediation costs in excess of the

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1 maximum credit per site authorized under paragraph (i).

2 This credit shall be applied first to the earliest year for

3 which there is a liability. If there is a credit under this

4 subsection from more than one tax year that is available to

5 offset a liability, the earliest credit arising under this

6 subsection shall be applied first. A credit allowed under

7 this subsection may be sold to a buyer as part of a sale of

8 all or part of the remediation site for which the credit

9 was granted. The purchaser of a remediation site and the

10 tax credit shall succeed to the unused credit and remaining

11 carry-forward period of the seller. To perfect the

12 transfer, the assignor shall record the transfer in the

13 chain of title for the site and provide written notice to

14 the Director of the Illinois Department of Revenue of the

15 assignor's intent to sell the remediation site and the

16 amount of the tax credit to be transferred as a portion of

17 the sale. In no event may a credit be transferred to any

18 taxpayer if the taxpayer or a related party would not be

19 eligible under the provisions of subsection (i).

20 (iii) For purposes of this Section, the term "site"

21 shall have the same meaning as under Section 58.2 of the

22 Environmental Protection Act.

23 (m) Education expense credit. Beginning with tax years

24 ending after December 31, 1999, a taxpayer who is the custodian

25 of one or more qualifying pupils shall be allowed a credit

26 against the tax imposed by subsections (a) and (b) of this

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1 Section for qualified education expenses incurred on behalf of

2 the qualifying pupils. The credit shall be equal to 25% of

3 qualified education expenses, but in no event may the total

4 credit under this subsection claimed by a family that is the

5 custodian of qualifying pupils exceed (i) $500 for tax years

6 ending prior to December 31, 2017, and (ii) $750 for tax years

7 ending on or after December 31, 2017. In no event shall a

8 credit under this subsection reduce the taxpayer's liability

9 under this Act to less than zero. Notwithstanding any other

10 provision of law, for taxable years beginning on or after

11 January 1, 2017, no taxpayer may claim a credit under this

12 subsection (m) if the taxpayer's adjusted gross income for the

13 taxable year exceeds (i) $500,000, in the case of spouses

14 filing a joint federal tax return or (ii) $250,000, in the case

15 of all other taxpayers. This subsection is exempt from the

16 provisions of Section 250 of this Act.

17 For purposes of this subsection:

18 "Qualifying pupils" means individuals who (i) are

19 residents of the State of Illinois, (ii) are under the age of

20 21 at the close of the school year for which a credit is

21 sought, and (iii) during the school year for which a credit is

22 sought were full-time pupils enrolled in a kindergarten through

23 twelfth grade education program at any school, as defined in

24 this subsection.

25 "Qualified education expense" means the amount incurred on

26 behalf of a qualifying pupil in excess of $250 for tuition,

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1 book fees, and lab fees at the school in which the pupil is

2 enrolled during the regular school year.

3 "School" means any public or nonpublic elementary or

4 secondary school in Illinois that is in compliance with Title

5 VI of the Civil Rights Act of 1964 and attendance at which

6 satisfies the requirements of Section 26-1 of the School Code,

7 except that nothing shall be construed to require a child to

8 attend any particular public or nonpublic school to qualify for

9 the credit under this Section.

10 "Custodian" means, with respect to qualifying pupils, an

11 Illinois resident who is a parent, the parents, a legal

12 guardian, or the legal guardians of the qualifying pupils.

13 (n) River Edge Redevelopment Zone site remediation tax

14 credit.

15 (i) For tax years ending on or after December 31, 2006,

16 a taxpayer shall be allowed a credit against the tax

17 imposed by subsections (a) and (b) of this Section for

18 certain amounts paid for unreimbursed eligible remediation

19 costs, as specified in this subsection. For purposes of

20 this Section, "unreimbursed eligible remediation costs"

21 means costs approved by the Illinois Environmental

22 Protection Agency ("Agency") under Section 58.14a of the

23 Environmental Protection Act that were paid in performing

24 environmental remediation at a site within a River Edge

25 Redevelopment Zone for which a No Further Remediation

26 Letter was issued by the Agency and recorded under Section

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1 58.10 of the Environmental Protection Act. The credit must

2 be claimed for the taxable year in which Agency approval of

3 the eligible remediation costs is granted. The credit is

4 not available to any taxpayer if the taxpayer or any

5 related party caused or contributed to, in any material

6 respect, a release of regulated substances on, in, or under

7 the site that was identified and addressed by the remedial

8 action pursuant to the Site Remediation Program of the

9 Environmental Protection Act. Determinations as to credit

10 availability for purposes of this Section shall be made

11 consistent with rules adopted by the Pollution Control

12 Board pursuant to the Illinois Administrative Procedure

13 Act for the administration and enforcement of Section 58.9

14 of the Environmental Protection Act. For purposes of this

15 Section, "taxpayer" includes a person whose tax attributes

16 the taxpayer has succeeded to under Section 381 of the

17 Internal Revenue Code and "related party" includes the

18 persons disallowed a deduction for losses by paragraphs

19 (b), (c), and (f)(1) of Section 267 of the Internal Revenue

20 Code by virtue of being a related taxpayer, as well as any

21 of its partners. The credit allowed against the tax imposed

22 by subsections (a) and (b) shall be equal to 25% of the

23 unreimbursed eligible remediation costs in excess of

24 $100,000 per site.

25 (ii) A credit allowed under this subsection that is

26 unused in the year the credit is earned may be carried

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1 forward to each of the 5 taxable years following the year

2 for which the credit is first earned until it is used. This

3 credit shall be applied first to the earliest year for

4 which there is a liability. If there is a credit under this

5 subsection from more than one tax year that is available to

6 offset a liability, the earliest credit arising under this

7 subsection shall be applied first. A credit allowed under

8 this subsection may be sold to a buyer as part of a sale of

9 all or part of the remediation site for which the credit

10 was granted. The purchaser of a remediation site and the

11 tax credit shall succeed to the unused credit and remaining

12 carry-forward period of the seller. To perfect the

13 transfer, the assignor shall record the transfer in the

14 chain of title for the site and provide written notice to

15 the Director of the Illinois Department of Revenue of the

16 assignor's intent to sell the remediation site and the

17 amount of the tax credit to be transferred as a portion of

18 the sale. In no event may a credit be transferred to any

19 taxpayer if the taxpayer or a related party would not be

20 eligible under the provisions of subsection (i).

21 (iii) For purposes of this Section, the term "site"

22 shall have the same meaning as under Section 58.2 of the

23 Environmental Protection Act.

24 (o) For each of taxable years during the Compassionate Use

25 of Medical Cannabis Pilot Program, a surcharge is imposed on

26 all taxpayers on income arising from the sale or exchange of

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1 capital assets, depreciable business property, real property

2 used in the trade or business, and Section 197 intangibles of

3 an organization registrant under the Compassionate Use of

4 Medical Cannabis Pilot Program Act. The amount of the surcharge

5 is equal to the amount of federal income tax liability for the

6 taxable year attributable to those sales and exchanges. The

7 surcharge imposed does not apply if:

8 (1) the medical cannabis cultivation center

9 registration, medical cannabis dispensary registration, or

10 the property of a registration is transferred as a result

11 of any of the following:

12 (A) bankruptcy, a receivership, or a debt

13 adjustment initiated by or against the initial

14 registration or the substantial owners of the initial

15 registration;

16 (B) cancellation, revocation, or termination of

17 any registration by the Illinois Department of Public

18 Health;

19 (C) a determination by the Illinois Department of

20 Public Health that transfer of the registration is in

21 the best interests of Illinois qualifying patients as

22 defined by the Compassionate Use of Medical Cannabis

23 Pilot Program Act;

24 (D) the death of an owner of the equity interest in

25 a registrant;

26 (E) the acquisition of a controlling interest in

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1 the stock or substantially all of the assets of a

2 publicly traded company;

3 (F) a transfer by a parent company to a wholly

4 owned subsidiary; or

5 (G) the transfer or sale to or by one person to

6 another person where both persons were initial owners

7 of the registration when the registration was issued;

8 or

9 (2) the cannabis cultivation center registration,

10 medical cannabis dispensary registration, or the

11 controlling interest in a registrant's property is

12 transferred in a transaction to lineal descendants in which

13 no gain or loss is recognized or as a result of a

14 transaction in accordance with Section 351 of the Internal

15 Revenue Code in which no gain or loss is recognized.

16 (Source: P.A. 100-22, eff. 7-6-17.)

17 Section 905. The Use Tax Act is amended by changing Section

18 3-5 as follows:

19 (35 ILCS 105/3-5)

20 Sec. 3-5. Exemptions. Use of the following tangible

21 personal property is exempt from the tax imposed by this Act:

22 (1) Personal property purchased from a corporation,

23 society, association, foundation, institution, or

24 organization, other than a limited liability company, that is

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1 organized and operated as a not-for-profit service enterprise

2 for the benefit of persons 65 years of age or older if the

3 personal property was not purchased by the enterprise for the

4 purpose of resale by the enterprise.

5 (2) Personal property purchased by a not-for-profit

6 Illinois county fair association for use in conducting,

7 operating, or promoting the county fair.

8 (3) Personal property purchased by a not-for-profit arts or

9 cultural organization that establishes, by proof required by

10 the Department by rule, that it has received an exemption under

11 Section 501(c)(3) of the Internal Revenue Code and that is

12 organized and operated primarily for the presentation or

13 support of arts or cultural programming, activities, or

14 services. These organizations include, but are not limited to,

15 music and dramatic arts organizations such as symphony

16 orchestras and theatrical groups, arts and cultural service

17 organizations, local arts councils, visual arts organizations,

18 and media arts organizations. On and afterJuly 1, 2001 (the

19 effective date of Public Act 92-35) ~~this amendatory Act of the~~

20 ~~92nd General Assembly~~, however, an entity otherwise eligible

21 for this exemption shall not make tax-free purchases unless it

22 has an active identification number issued by the Department.

23 (4) Personal property purchased by a governmental body, by

24 a corporation, society, association, foundation, or

25 institution organized and operated exclusively for charitable,

26 religious, or educational purposes, or by a not-for-profit

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1 corporation, society, association, foundation, institution, or

2 organization that has no compensated officers or employees and

3 that is organized and operated primarily for the recreation of

4 persons 55 years of age or older. A limited liability company

5 may qualify for the exemption under this paragraph only if the

6 limited liability company is organized and operated

7 exclusively for educational purposes. On and after July 1,

8 1987, however, no entity otherwise eligible for this exemption

9 shall make tax-free purchases unless it has an active exemption

10 identification number issued by the Department.

11 (5) Until July 1, 2003, a passenger car that is a

12 replacement vehicle to the extent that the purchase price of

13 the car is subject to the Replacement Vehicle Tax.

14 (6) Until July 1, 2003 and beginning again on September 1,

15 2004 through August 30, 2014, graphic arts machinery and

16 equipment, including repair and replacement parts, both new and

17 used, and including that manufactured on special order,

18 certified by the purchaser to be used primarily for graphic

19 arts production, and including machinery and equipment

20 purchased for lease. Equipment includes chemicals or chemicals

21 acting as catalysts but only if the chemicals or chemicals

22 acting as catalysts effect a direct and immediate change upon a

23 graphic arts product. Beginning on July 1, 2017, graphic arts

24 machinery and equipment is included in the manufacturing and

25 assembling machinery and equipment exemption under paragraph

26 (18).

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1 (7) Farm chemicals.

2 (8) Legal tender, currency, medallions, or gold or silver

3 coinage issued by the State of Illinois, the government of the

4 United States of America, or the government of any foreign

5 country, and bullion.

6 (9) Personal property purchased from a teacher-sponsored

7 student organization affiliated with an elementary or

8 secondary school located in Illinois.

9 (10) A motor vehicle that is used for automobile renting,

10 as defined in the Automobile Renting Occupation and Use Tax

11 Act.

12 (11) Farm machinery and equipment, both new and used,

13 including that manufactured on special order, certified by the

14 purchaser to be used primarily for production agriculture or

15 State or federal agricultural programs, including individual

16 replacement parts for the machinery and equipment, including

17 machinery and equipment purchased for lease, and including

18 implements of husbandry defined in Section 1-130 of the

19 Illinois Vehicle Code, farm machinery and agricultural

20 chemical and fertilizer spreaders, and nurse wagons required to

21 be registered under Section 3-809 of the Illinois Vehicle Code,

22 but excluding other motor vehicles required to be registered

23 under the Illinois Vehicle Code. Horticultural polyhouses or

24 hoop houses used for propagating, growing, or overwintering

25 plants shall be considered farm machinery and equipment under

26 this item (11). Agricultural chemical tender tanks and dry

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1 boxes shall include units sold separately from a motor vehicle

2 required to be licensed and units sold mounted on a motor

3 vehicle required to be licensed if the selling price of the

4 tender is separately stated.

5 Farm machinery and equipment shall include precision

6 farming equipment that is installed or purchased to be

7 installed on farm machinery and equipment including, but not

8 limited to, tractors, harvesters, sprayers, planters, seeders,

9 or spreaders. Precision farming equipment includes, but is not

10 limited to, soil testing sensors, computers, monitors,

11 software, global positioning and mapping systems, and other

12 such equipment.

13 Farm machinery and equipment also includes computers,

14 sensors, software, and related equipment used primarily in the

15 computer-assisted operation of production agriculture

16 facilities, equipment, and activities such as, but not limited

17 to, the collection, monitoring, and correlation of animal and

18 crop data for the purpose of formulating animal diets and

19 agricultural chemicals. This item (11) is exempt from the

20 provisions of Section 3-90.

21 (12) Until June 30, 2013, fuel and petroleum products sold

22 to or used by an air common carrier, certified by the carrier

23 to be used for consumption, shipment, or storage in the conduct

24 of its business as an air common carrier, for a flight destined

25 for or returning from a location or locations outside the

26 United States without regard to previous or subsequent domestic

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1 stopovers.

2 Beginning July 1, 2013, fuel and petroleum products sold to

3 or used by an air carrier, certified by the carrier to be used

4 for consumption, shipment, or storage in the conduct of its

5 business as an air common carrier, for a flight that (i) is

6 engaged in foreign trade or is engaged in trade between the

7 United States and any of its possessions and (ii) transports at

8 least one individual or package for hire from the city of

9 origination to the city of final destination on the same

10 aircraft, without regard to a change in the flight number of

11 that aircraft.

12 (13) Proceeds of mandatory service charges separately

13 stated on customers' bills for the purchase and consumption of

14 food and beverages purchased at retail from a retailer, to the

15 extent that the proceeds of the service charge are in fact

16 turned over as tips or as a substitute for tips to the

17 employees who participate directly in preparing, serving,

18 hosting or cleaning up the food or beverage function with

19 respect to which the service charge is imposed.

20 (14) Until July 1, 2003, oil field exploration, drilling,

21 and production equipment, including (i) rigs and parts of rigs,

22 rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and

23 tubular goods, including casing and drill strings, (iii) pumps

24 and pump-jack units, (iv) storage tanks and flow lines, (v) any

25 individual replacement part for oil field exploration,

26 drilling, and production equipment, and (vi) machinery and

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1 equipment purchased for lease; but excluding motor vehicles

2 required to be registered under the Illinois Vehicle Code.

3 (15) Photoprocessing machinery and equipment, including

4 repair and replacement parts, both new and used, including that

5 manufactured on special order, certified by the purchaser to be

6 used primarily for photoprocessing, and including

7 photoprocessing machinery and equipment purchased for lease.

8 (16) Coal and aggregate exploration, mining, off-highway

9 hauling, processing, maintenance, and reclamation equipment,

10 including replacement parts and equipment, and including

11 equipment purchased for lease, but excluding motor vehicles

12 required to be registered under the Illinois Vehicle Code. The

13 changes made to this Section by Public Act 97-767 apply on and

14 after July 1, 2003, but no claim for credit or refund is

15 allowed on or after August 16, 2013 (the effective date of

16 Public Act 98-456) for such taxes paid during the period

17 beginning July 1, 2003 and ending on August 16, 2013 (the

18 effective date of Public Act 98-456).

19 (17) Until July 1, 2003, distillation machinery and

20 equipment, sold as a unit or kit, assembled or installed by the

21 retailer, certified by the user to be used only for the

22 production of ethyl alcohol that will be used for consumption

23 as motor fuel or as a component of motor fuel for the personal

24 use of the user, and not subject to sale or resale.

25 (18) Manufacturing and assembling machinery and equipment

26 used primarily in the process of manufacturing or assembling

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1 tangible personal property for wholesale or retail sale or

2 lease, whether that sale or lease is made directly by the

3 manufacturer or by some other person, whether the materials

4 used in the process are owned by the manufacturer or some other

5 person, or whether that sale or lease is made apart from or as

6 an incident to the seller's engaging in the service occupation

7 of producing machines, tools, dies, jigs, patterns, gauges, or

8 other similar items of no commercial value on special order for

9 a particular purchaser. The exemption provided by this

10 paragraph (18) does not include machinery and equipment used in

11 (i) the generation of electricity for wholesale or retail sale;

12 (ii) the generation or treatment of natural or artificial gas

13 for wholesale or retail sale that is delivered to customers

14 through pipes, pipelines, or mains; or (iii) the treatment of

15 water for wholesale or retail sale that is delivered to

16 customers through pipes, pipelines, or mains. The provisions of

17 Public Act 98-583 are declaratory of existing law as to the

18 meaning and scope of this exemption. Beginning on July 1, 2017,

19 the exemption provided by this paragraph (18) includes, but is

20 not limited to, graphic arts machinery and equipment, as

21 defined in paragraph (6) of this Section.

22 (19) Personal property delivered to a purchaser or

23 purchaser's donee inside Illinois when the purchase order for

24 that personal property was received by a florist located

25 outside Illinois who has a florist located inside Illinois

26 deliver the personal property.

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1 (20) Semen used for artificial insemination of livestock

2 for direct agricultural production.

3 (21) Horses, or interests in horses, registered with and

4 meeting the requirements of any of the Arabian Horse Club

5 Registry of America, Appaloosa Horse Club, American Quarter

6 Horse Association, United States Trotting Association, or

7 Jockey Club, as appropriate, used for purposes of breeding or

8 racing for prizes. This item (21) is exempt from the provisions

9 of Section 3-90, and the exemption provided for under this item

10 (21) applies for all periods beginning May 30, 1995, but no

11 claim for credit or refund is allowed on or after January 1,

12 2008 for such taxes paid during the period beginning May 30,

13 2000 and ending on January 1, 2008.

14 (22) Computers and communications equipment utilized for

15 any hospital purpose and equipment used in the diagnosis,

16 analysis, or treatment of hospital patients purchased by a

17 lessor who leases the equipment, under a lease of one year or

18 longer executed or in effect at the time the lessor would

19 otherwise be subject to the tax imposed by this Act, to a

20 hospital that has been issued an active tax exemption

21 identification number by the Department under Section 1g of the

22 Retailers' Occupation Tax Act. If the equipment is leased in a

23 manner that does not qualify for this exemption or is used in

24 any other non-exempt manner, the lessor shall be liable for the

25 tax imposed under this Act or the Service Use Tax Act, as the

26 case may be, based on the fair market value of the property at

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1 the time the non-qualifying use occurs. No lessor shall collect

2 or attempt to collect an amount (however designated) that

3 purports to reimburse that lessor for the tax imposed by this

4 Act or the Service Use Tax Act, as the case may be, if the tax

5 has not been paid by the lessor. If a lessor improperly

6 collects any such amount from the lessee, the lessee shall have

7 a legal right to claim a refund of that amount from the lessor.

8 If, however, that amount is not refunded to the lessee for any

9 reason, the lessor is liable to pay that amount to the

10 Department.

11 (23) Personal property purchased by a lessor who leases the

12 property, under a lease of one year or longer executed or in

13 effect at the time the lessor would otherwise be subject to the

14 tax imposed by this Act, to a governmental body that has been

15 issued an active sales tax exemption identification number by

16 the Department under Section 1g of the Retailers' Occupation

17 Tax Act. If the property is leased in a manner that does not

18 qualify for this exemption or used in any other non-exempt

19 manner, the lessor shall be liable for the tax imposed under

20 this Act or the Service Use Tax Act, as the case may be, based

21 on the fair market value of the property at the time the

22 non-qualifying use occurs. No lessor shall collect or attempt

23 to collect an amount (however designated) that purports to

24 reimburse that lessor for the tax imposed by this Act or the

25 Service Use Tax Act, as the case may be, if the tax has not been

26 paid by the lessor. If a lessor improperly collects any such

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1 amount from the lessee, the lessee shall have a legal right to

2 claim a refund of that amount from the lessor. If, however,

3 that amount is not refunded to the lessee for any reason, the

4 lessor is liable to pay that amount to the Department.

5 (24) Beginning with taxable years ending on or after

6 December 31, 1995 and ending with taxable years ending on or

7 before December 31, 2004, personal property that is donated for

8 disaster relief to be used in a State or federally declared

9 disaster area in Illinois or bordering Illinois by a

10 manufacturer or retailer that is registered in this State to a

11 corporation, society, association, foundation, or institution

12 that has been issued a sales tax exemption identification

13 number by the Department that assists victims of the disaster

14 who reside within the declared disaster area.

15 (25) Beginning with taxable years ending on or after

16 December 31, 1995 and ending with taxable years ending on or

17 before December 31, 2004, personal property that is used in the

18 performance of infrastructure repairs in this State, including

19 but not limited to municipal roads and streets, access roads,

20 bridges, sidewalks, waste disposal systems, water and sewer

21 line extensions, water distribution and purification

22 facilities, storm water drainage and retention facilities, and

23 sewage treatment facilities, resulting from a State or

24 federally declared disaster in Illinois or bordering Illinois

25 when such repairs are initiated on facilities located in the

26 declared disaster area within 6 months after the disaster.

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1 (26) Beginning July 1, 1999, game or game birds purchased

2 at a "game breeding and hunting preserve area" as that term is

3 used in the Wildlife Code. This paragraph is exempt from the

4 provisions of Section 3-90.

5 (27) A motor vehicle, as that term is defined in Section

6 1-146 of the Illinois Vehicle Code, that is donated to a

7 corporation, limited liability company, society, association,

8 foundation, or institution that is determined by the Department

9 to be organized and operated exclusively for educational

10 purposes. For purposes of this exemption, "a corporation,

11 limited liability company, society, association, foundation,

12 or institution organized and operated exclusively for

13 educational purposes" means all tax-supported public schools,

14 private schools that offer systematic instruction in useful

15 branches of learning by methods common to public schools and

16 that compare favorably in their scope and intensity with the

17 course of study presented in tax-supported schools, and

18 vocational or technical schools or institutes organized and

19 operated exclusively to provide a course of study of not less

20 than 6 weeks duration and designed to prepare individuals to

21 follow a trade or to pursue a manual, technical, mechanical,

22 industrial, business, or commercial occupation.

23 (28) Beginning January 1, 2000, personal property,

24 including food, purchased through fundraising events for the

25 benefit of a public or private elementary or secondary school,

26 a group of those schools, or one or more school districts if

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1 the events are sponsored by an entity recognized by the school

2 district that consists primarily of volunteers and includes

3 parents and teachers of the school children. This paragraph

4 does not apply to fundraising events (i) for the benefit of

5 private home instruction or (ii) for which the fundraising

6 entity purchases the personal property sold at the events from

7 another individual or entity that sold the property for the

8 purpose of resale by the fundraising entity and that profits

9 from the sale to the fundraising entity. This paragraph is

10 exempt from the provisions of Section 3-90.

11 (29) Beginning January 1, 2000 and through December 31,

12 2001, new or used automatic vending machines that prepare and

13 serve hot food and beverages, including coffee, soup, and other

14 items, and replacement parts for these machines. Beginning

15 January 1, 2002 and through June 30, 2003, machines and parts

16 for machines used in commercial, coin-operated amusement and

17 vending business if a use or occupation tax is paid on the

18 gross receipts derived from the use of the commercial,

19 coin-operated amusement and vending machines. This paragraph

20 is exempt from the provisions of Section 3-90.

21 (30) Beginning January 1, 2001 and through June 30, 2016,

22 food for human consumption that is to be consumed off the

23 premises where it is sold (other than alcoholic beverages, soft

24 drinks, and food that has been prepared for immediate

25 consumption) and prescription and nonprescription medicines,

26 drugs, medical appliances, and insulin, urine testing

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1 materials, syringes, and needles used by diabetics, for human

2 use, when purchased for use by a person receiving medical

3 assistance under Article V of the Illinois Public Aid Code who

4 resides in a licensed long-term care facility, as defined in

5 the Nursing Home Care Act, or in a licensed facility as defined

6 in the ID/DD Community Care Act, the MC/DD Act, or the

7 Specialized Mental Health Rehabilitation Act of 2013.

8 (31) Beginning on August 2, 2001 (the effective date of

9 Public Act 92-227) ~~this amendatory Act of the 92nd General~~

10 ~~Assembly~~, computers and communications equipment utilized for

11 any hospital purpose and equipment used in the diagnosis,

12 analysis, or treatment of hospital patients purchased by a

13 lessor who leases the equipment, under a lease of one year or

14 longer executed or in effect at the time the lessor would

15 otherwise be subject to the tax imposed by this Act, to a

16 hospital that has been issued an active tax exemption

17 identification number by the Department under Section 1g of the

18 Retailers' Occupation Tax Act. If the equipment is leased in a

19 manner that does not qualify for this exemption or is used in

20 any other nonexempt manner, the lessor shall be liable for the

21 tax imposed under this Act or the Service Use Tax Act, as the

22 case may be, based on the fair market value of the property at

23 the time the nonqualifying use occurs. No lessor shall collect

24 or attempt to collect an amount (however designated) that

25 purports to reimburse that lessor for the tax imposed by this

26 Act or the Service Use Tax Act, as the case may be, if the tax

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1 has not been paid by the lessor. If a lessor improperly

2 collects any such amount from the lessee, the lessee shall have

3 a legal right to claim a refund of that amount from the lessor.

4 If, however, that amount is not refunded to the lessee for any

5 reason, the lessor is liable to pay that amount to the

6 Department. This paragraph is exempt from the provisions of

7 Section 3-90.

8 (32) Beginning on August 2, 2001 (the effective date of

9 Public Act 92-227) ~~this amendatory Act of the 92nd General~~

10 ~~Assembly~~, personal property purchased by a lessor who leases

11 the property, under a lease of one year or longer executed or

12 in effect at the time the lessor would otherwise be subject to

13 the tax imposed by this Act, to a governmental body that has

14 been issued an active sales tax exemption identification number

15 by the Department under Section 1g of the Retailers' Occupation

16 Tax Act. If the property is leased in a manner that does not

17 qualify for this exemption or used in any other nonexempt

18 manner, the lessor shall be liable for the tax imposed under

19 this Act or the Service Use Tax Act, as the case may be, based

20 on the fair market value of the property at the time the

21 nonqualifying use occurs. No lessor shall collect or attempt to

22 collect an amount (however designated) that purports to

23 reimburse that lessor for the tax imposed by this Act or the

24 Service Use Tax Act, as the case may be, if the tax has not been

25 paid by the lessor. If a lessor improperly collects any such

26 amount from the lessee, the lessee shall have a legal right to

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1 claim a refund of that amount from the lessor. If, however,

2 that amount is not refunded to the lessee for any reason, the

3 lessor is liable to pay that amount to the Department. This

4 paragraph is exempt from the provisions of Section 3-90.

5 (33) On and after July 1, 2003 and through June 30, 2004,

6 the use in this State of motor vehicles of the second division

7 with a gross vehicle weight in excess of 8,000 pounds and that

8 are subject to the commercial distribution fee imposed under

9 Section 3-815.1 of the Illinois Vehicle Code. Beginning on July

10 1, 2004 and through June 30, 2005, the use in this State of

11 motor vehicles of the second division: (i) with a gross vehicle

12 weight rating in excess of 8,000 pounds; (ii) that are subject

13 to the commercial distribution fee imposed under Section

14 3-815.1 of the Illinois Vehicle Code; and (iii) that are

15 primarily used for commercial purposes. Through June 30, 2005,

16 this exemption applies to repair and replacement parts added

17 after the initial purchase of such a motor vehicle if that

18 motor vehicle is used in a manner that would qualify for the

19 rolling stock exemption otherwise provided for in this Act. For

20 purposes of this paragraph, the term "used for commercial

21 purposes" means the transportation of persons or property in

22 furtherance of any commercial or industrial enterprise,

23 whether for-hire or not.

24 (34) Beginning January 1, 2008, tangible personal property

25 used in the construction or maintenance of a community water

26 supply, as defined under Section 3.145 of the Environmental

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1 Protection Act, that is operated by a not-for-profit

2 corporation that holds a valid water supply permit issued under

3 Title IV of the Environmental Protection Act. This paragraph is

4 exempt from the provisions of Section 3-90.

5 (35) Beginning January 1, 2010, materials, parts,

6 equipment, components, and furnishings incorporated into or

7 upon an aircraft as part of the modification, refurbishment,

8 completion, replacement, repair, or maintenance of the

9 aircraft. This exemption includes consumable supplies used in

10 the modification, refurbishment, completion, replacement,

11 repair, and maintenance of aircraft, but excludes any

12 materials, parts, equipment, components, and consumable

13 supplies used in the modification, replacement, repair, and

14 maintenance of aircraft engines or power plants, whether such

15 engines or power plants are installed or uninstalled upon any

16 such aircraft. "Consumable supplies" include, but are not

17 limited to, adhesive, tape, sandpaper, general purpose

18 lubricants, cleaning solution, latex gloves, and protective

19 films. This exemption applies only to the use of qualifying

20 tangible personal property by persons who modify, refurbish,

21 complete, repair, replace, or maintain aircraft and who (i)

22 hold an Air Agency Certificate and are empowered to operate an

23 approved repair station by the Federal Aviation

24 Administration, (ii) have a Class IV Rating, and (iii) conduct

25 operations in accordance with Part 145 of the Federal Aviation

26 Regulations. The exemption does not include aircraft operated

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1 by a commercial air carrier providing scheduled passenger air

2 service pursuant to authority issued under Part 121 or Part 129

3 of the Federal Aviation Regulations. The changes made to this

4 paragraph (35) by Public Act 98-534 are declarative of existing

5 law.

6 (36) Tangible personal property purchased by a

7 public-facilities corporation, as described in Section

8 11-65-10 of the Illinois Municipal Code, for purposes of

9 constructing or furnishing a municipal convention hall, but

10 only if the legal title to the municipal convention hall is

11 transferred to the municipality without any further

12 consideration by or on behalf of the municipality at the time

13 of the completion of the municipal convention hall or upon the

14 retirement or redemption of any bonds or other debt instruments

15 issued by the public-facilities corporation in connection with

16 the development of the municipal convention hall. This

17 exemption includes existing public-facilities corporations as

18 provided in Section 11-65-25 of the Illinois Municipal Code.

19 This paragraph is exempt from the provisions of Section 3-90.

20 (37) Beginning January 1, 2017, menstrual pads, tampons,

21 and menstrual cups.

22 (38) Merchandise that is subject to the Rental Purchase

23 Agreement Occupation and Use Tax. The purchaser must certify

24 that the item is purchased to be rented subject to a rental

25 purchase agreement, as defined in the Rental Purchase Agreement

26 Act, and provide proof of registration under the Rental

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1 Purchase Agreement Occupation and Use Tax Act. This paragraph

2 is exempt from the provisions of Section 3-90.

3 (39) On and after January 1, 2019, any software purchased

4 to lease, upgrade, supplement, or replace computer equipment or

5 enabling software purchased or leased in the initial investment

6 made at a Big Empties Site designated under the Big Empties

7 Site Act. This paragraph is exempt from the provisions of

8 Section 3-90.

9 (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;

10 100-22, eff. 7-6-17; 100-437, eff. 1-1-18; revised 9-27-17.)

11 Section 910. The Service Use Tax Act is amended by changing

12 Section 3-5 as follows:

13 (35 ILCS 110/3-5)

14 Sec. 3-5. Exemptions. Use of the following tangible

15 personal property is exempt from the tax imposed by this Act:

16 (1) Personal property purchased from a corporation,

17 society, association, foundation, institution, or

18 organization, other than a limited liability company, that is

19 organized and operated as a not-for-profit service enterprise

20 for the benefit of persons 65 years of age or older if the

21 personal property was not purchased by the enterprise for the

22 purpose of resale by the enterprise.

23 (2) Personal property purchased by a non-profit Illinois

24 county fair association for use in conducting, operating, or

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1 promoting the county fair.

2 (3) Personal property purchased by a not-for-profit arts or

3 cultural organization that establishes, by proof required by

4 the Department by rule, that it has received an exemption under

5 Section 501(c)(3) of the Internal Revenue Code and that is

6 organized and operated primarily for the presentation or

7 support of arts or cultural programming, activities, or

8 services. These organizations include, but are not limited to,

9 music and dramatic arts organizations such as symphony

10 orchestras and theatrical groups, arts and cultural service

11 organizations, local arts councils, visual arts organizations,

12 and media arts organizations. On and after the effective date

13 of this amendatory Act of the 92nd General Assembly, however,

14 an entity otherwise eligible for this exemption shall not make

15 tax-free purchases unless it has an active identification

16 number issued by the Department.

17 (4) Legal tender, currency, medallions, or gold or silver

18 coinage issued by the State of Illinois, the government of the

19 United States of America, or the government of any foreign

20 country, and bullion.

21 (5) Until July 1, 2003 and beginning again on September 1,

22 2004 through August 30, 2014, graphic arts machinery and

23 equipment, including repair and replacement parts, both new and

24 used, and including that manufactured on special order or

25 purchased for lease, certified by the purchaser to be used

26 primarily for graphic arts production. Equipment includes

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1 chemicals or chemicals acting as catalysts but only if the

2 chemicals or chemicals acting as catalysts effect a direct and

3 immediate change upon a graphic arts product. Beginning on July

4 1, 2017, graphic arts machinery and equipment is included in

5 the manufacturing and assembling machinery and equipment

6 exemption under Section 2 of this Act.

7 (6) Personal property purchased from a teacher-sponsored

8 student organization affiliated with an elementary or

9 secondary school located in Illinois.

10 (7) Farm machinery and equipment, both new and used,

11 including that manufactured on special order, certified by the

12 purchaser to be used primarily for production agriculture or

13 State or federal agricultural programs, including individual

14 replacement parts for the machinery and equipment, including

15 machinery and equipment purchased for lease, and including

16 implements of husbandry defined in Section 1-130 of the

17 Illinois Vehicle Code, farm machinery and agricultural

18 chemical and fertilizer spreaders, and nurse wagons required to

19 be registered under Section 3-809 of the Illinois Vehicle Code,

20 but excluding other motor vehicles required to be registered

21 under the Illinois Vehicle Code. Horticultural polyhouses or

22 hoop houses used for propagating, growing, or overwintering

23 plants shall be considered farm machinery and equipment under

24 this item (7). Agricultural chemical tender tanks and dry boxes

25 shall include units sold separately from a motor vehicle

26 required to be licensed and units sold mounted on a motor

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1 vehicle required to be licensed if the selling price of the

2 tender is separately stated.

3 Farm machinery and equipment shall include precision

4 farming equipment that is installed or purchased to be

5 installed on farm machinery and equipment including, but not

6 limited to, tractors, harvesters, sprayers, planters, seeders,

7 or spreaders. Precision farming equipment includes, but is not

8 limited to, soil testing sensors, computers, monitors,

9 software, global positioning and mapping systems, and other

10 such equipment.

11 Farm machinery and equipment also includes computers,

12 sensors, software, and related equipment used primarily in the

13 computer-assisted operation of production agriculture

14 facilities, equipment, and activities such as, but not limited

15 to, the collection, monitoring, and correlation of animal and

16 crop data for the purpose of formulating animal diets and

17 agricultural chemicals. This item (7) is exempt from the

18 provisions of Section 3-75.

19 (8) Until June 30, 2013, fuel and petroleum products sold

20 to or used by an air common carrier, certified by the carrier

21 to be used for consumption, shipment, or storage in the conduct

22 of its business as an air common carrier, for a flight destined

23 for or returning from a location or locations outside the

24 United States without regard to previous or subsequent domestic

25 stopovers.

26 Beginning July 1, 2013, fuel and petroleum products sold to

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1 or used by an air carrier, certified by the carrier to be used

2 for consumption, shipment, or storage in the conduct of its

3 business as an air common carrier, for a flight that (i) is

4 engaged in foreign trade or is engaged in trade between the

5 United States and any of its possessions and (ii) transports at

6 least one individual or package for hire from the city of

7 origination to the city of final destination on the same

8 aircraft, without regard to a change in the flight number of

9 that aircraft.

10 (9) Proceeds of mandatory service charges separately

11 stated on customers' bills for the purchase and consumption of

12 food and beverages acquired as an incident to the purchase of a

13 service from a serviceman, to the extent that the proceeds of

14 the service charge are in fact turned over as tips or as a

15 substitute for tips to the employees who participate directly

16 in preparing, serving, hosting or cleaning up the food or

17 beverage function with respect to which the service charge is

18 imposed.

19 (10) Until July 1, 2003, oil field exploration, drilling,

20 and production equipment, including (i) rigs and parts of rigs,

21 rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and

22 tubular goods, including casing and drill strings, (iii) pumps

23 and pump-jack units, (iv) storage tanks and flow lines, (v) any

24 individual replacement part for oil field exploration,

25 drilling, and production equipment, and (vi) machinery and

26 equipment purchased for lease; but excluding motor vehicles

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1 required to be registered under the Illinois Vehicle Code.

2 (11) Proceeds from the sale of photoprocessing machinery

3 and equipment, including repair and replacement parts, both new

4 and used, including that manufactured on special order,

5 certified by the purchaser to be used primarily for

6 photoprocessing, and including photoprocessing machinery and

7 equipment purchased for lease.

8 (12) Coal and aggregate exploration, mining, off-highway