Bill Amendment: IL HB0817 | 2023-2024 | 103rd General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: STATE GOVERNMENT-TECH

Status: 2025-01-22 - Sent to the Governor [HB0817 Detail]

Download: Illinois-2023-HB0817-House_Amendment_001.html

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Rep. Dave Vella

Filed: 5/14/2024

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AMENDMENT TO HOUSE BILL 817
AMENDMENT NO. ______. Amend House Bill 817 by replacing
everything after the enacting clause with the following:
"Section 5. The Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois
is amended by adding Section 605-1115 as follows:
(20 ILCS 605/605-1115 new)
Sec. 605-1115. Quantum computing campus enterprise zone.
(a) As used in this Section:
"Data center" means a facility: (1) whose primary,
services are the storage, management, and processing of
digital data; and (2) that is used to house (A) computer and
network systems, including associated components such as
servers, network equipment and appliances, telecommunications,
and data storage systems, (B) systems for monitoring and
managing infrastructure performance, (C) Internet-related

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equipment and services, (D) data communications connections,
(E) environmental controls, (F) fire protection systems, and
(G) security systems and services.
"Full-time equivalent job" means a job in which an
employee works for a tenant of the quantum campus at a rate of
at least 35 hours per week. Vacations, paid holidays, and sick
time are included in this computation. Overtime is not
considered a part of regular hours.
"Qualified tangible property" means: electrical systems
and equipment; climate control and chilling equipment and
systems; mechanical systems and equipment; monitoring and
secure systems; emergency generators; hardware; computers;
servers; data storage devices; network connectivity equipment;
racks; cabinets; telecommunications cabling infrastructure;
raised floor systems; peripheral components or systems;
software; mechanical, electrical, or plumbing systems; battery
systems; cooling systems and towers; temperature control
systems; other cabling; and other quantum computing
infrastructure equipment and systems necessary to operate
qualified tangible property, including fixtures; and component
parts of any of the foregoing, including installation,
maintenance, repair, refurbishment, and replacement of
qualified tangible property to generate, transform, transmit,
distribute, or manage electricity necessary to operate
qualified tangible property; and all other tangible property
that is essential to the operations of a quantum computing

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

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quantum bits. Additionally, a quantum campus shall meet the
following criteria:
(1) the campus must comprise a minimum of one-half
square mile and not more than 4 square miles;
(2) the campus must contain tenants that demonstrate a
substantial plan for using the designation to encourage
participation by organizations owned by minorities, women,
and persons with disabilities, as those terms are defined
in the Business Enterprise for Minorities, Women, and
Persons with Disabilities Act, and the hiring of
minorities, women, and persons with disabilities;
(3) upon being placed in service, within 60 months
after designation or incorporation into a campus, the
owners of property located in a campus shall certify to
the Department that the property is carbon neutral or has
attained certification under one or more of the following
green building standards:
(A) BREEAM for New Construction or BREEAM, In-Use;
(B) ENERGY STAR;
(C) Envision;
(D) ISO 50001-energy management;
(E) LEED for Building Design and Construction, or
LEED for Operations and Maintenance;
(F) Green Globes for New Construction or, Green
Globes for Existing Buildings;
(G) UL 3223; or

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(H) an equivalent program approved by the
Department of Commerce and Economic Opportunity.
(b) Tenants located in a designated quantum campus
enterprise zone shall qualify for the following exemptions and
credits:
(1) an exemption from the taxes imposed under the Use
Tax Act, the Service Use Tax Act, the Service Occupation
Tax Act, and the Retailers' Occupation Tax Act, as
provided in those Acts;
(2) an exemption from the Chicago non-titled use tax
and all locally imposed retailers' occupation taxes
administered and collected by the Department of Revenue;
(3) an exemption from the charges imposed under
Section 9-222 and 9-222.1 of the Public Utilities Act; and
(4) a credit against the taxes imposed under
subsections (a) and (b) of Section 201 of the Illinois
Income Tax Act as provided in Section 241 of the Illinois
Income Tax Act.
(c) Certificates of exemption and credit certificates
under this Section shall be issued by the Department of
Commerce and Economic Opportunity.
(d) Entities seeking to form a quantum computing campus
enterprise zone must apply to the Department in the manner
specified by the Department. Entities seeking to join an
established campus must apply for an amendment to the existing
campus. This application for amendment must be submitted to

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the Department with support from other campus members.
The Department shall determine the duration of the
certificate of exemption awarded under this Act. The duration
of the certificate of exemption may not exceed 20 calendar
years and one renewal for an additional 20 years.
The Department and any tenant located in a quantum
computing campus enterprise zone seeking the benefits under
this Section must enter into a memorandum of understanding
that, at a minimum, provides:
(1) the details for determining the amount of capital
investment to be made;
(2) the number of new jobs created;
(3) the timeline for achieving the capital investment
and new job goals;
(4) the repayment obligation should those goals not be
achieved and any conditions under which repayment by the
tenant or tenants claiming the exemption shall be
required;
(5) the duration of the exemptions; and
(6) other provisions as deemed necessary by the
Department.
The Department shall, within 10 days after the
designation, send a letter of notification to each member of
the General Assembly whose legislative district or
representative district contains all or part of the designated
area.

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(e) Beginning on July 1, 2025, and each year thereafter,
the Department shall annually report to the Governor and the
General Assembly on the outcomes and effectiveness of this
amendatory Act of the 103rd General Assembly. The report shall
include the following:
(1) the names of each tenant located within the
quantum computing campus enterprise zone;
(2) the location of each quantum computing campus
enterprise zone;
(3) the estimated value of the credits to be issued to
quantum computing campus enterprise zone tenants;
(4) the number of new jobs and, if applicable,
retained jobs pledged at each quantum computing campus
enterprise zone; and
(5) whether or not the quantum computing campus
enterprise zone is located in an underserved area, an
energy transition zone, or an opportunity zone.
(f) Tenants at the quantum computing campus enterprise
zone seeking a certificate of exemption related to the
construction of required facilities shall require the
contractor and all subcontractors to:
(1) comply with the requirements of Section 30-22 of
the Illinois Procurement Code as those requirements apply
to responsible bidders and to present satisfactory
evidence of that compliance to the Department; and
(2) enter into a project labor agreement submitted to

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the Department.
(g) Any tenants issued a certificate of exemption under
this Section must annually report to the Department of Revenue
the total quantum computing campus enterprise zone benefits
that are received by the tenant. Reports are due no later than
September 30 of each year and shall cover the previous
calendar year. The first report shall cover the 2025 calendar
year and is due no later than September 30, 2026.
Failure to file a report under this subsection (g) may
result in suspension or revocation of the certificate of
exemption. Factors to be considered in determining whether a
certificate of exemption shall be suspended or revoked
include, but are not limited to, prior compliance with the
reporting requirements, cooperation in discontinuing and
correcting violations, the extent of the violation, and
whether the violation was willful or inadvertent.
(h) The Department shall not issue any new certificates of
exemption under the provisions of this Section after July 1,
2030. This sunset shall not affect any existing certificates
of exemption in effect on July 1, 2030.
(i) The Department shall adopt rules to implement and
administer this Section.
Section 10. The Illinois Enterprise Zone Act is amended by
changing Sections 5.5 and 13 as follows:

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(20 ILCS 655/5.5) (from Ch. 67 1/2, par. 609.1)
Sec. 5.5. High Impact Business.
(a) In order to respond to unique opportunities to assist
in the encouragement, development, growth, and expansion of
the private sector through large scale investment and
development projects, the Department is authorized to receive
and approve applications for the designation of "High Impact
Businesses" in Illinois, for an initial term of 20 years with
an option for renewal for a term not to exceed 20 years,
subject to the following conditions:
(1) such applications may be submitted at any time
during the year;
(2) such business is not located, at the time of
designation, in an enterprise zone designated pursuant to
this Act, except for grocery stores defined by the Grocery
Initiative Act;
(3) the business intends to do, commits to do, or is
one or more of the following:
(A) the business intends to make a minimum
investment of $12,000,000 which will be placed in
service in qualified property and intends to create
500 full-time equivalent jobs at a designated location
in Illinois or intends to make a minimum investment of
$30,000,000 which will be placed in service in
qualified property and intends to retain 1,500
full-time retained jobs at a designated location in

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Illinois. The terms "placed in service" and "qualified
property" have the same meanings as described in
subsection (h) of Section 201 of the Illinois Income
Tax Act; or
(B) the business intends to establish a new
electric generating facility at a designated location
in Illinois. "New electric generating facility", for
purposes of this Section, means a newly constructed
electric generation plant or a newly constructed
generation capacity expansion at an existing electric
generation plant, including the transmission lines and
associated equipment that transfers electricity from
points of supply to points of delivery, and for which
such new foundation construction commenced not sooner
than July 1, 2001. Such facility shall be designed to
provide baseload electric generation and shall operate
on a continuous basis throughout the year; and (i)
shall have an aggregate rated generating capacity of
at least 1,000 megawatts for all new units at one site
if it uses natural gas as its primary fuel and
foundation construction of the facility is commenced
on or before December 31, 2004, or shall have an
aggregate rated generating capacity of at least 400
megawatts for all new units at one site if it uses coal
or gases derived from coal as its primary fuel and
shall support the creation of at least 150 new

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Illinois coal mining jobs, or (ii) shall be funded
through a federal Department of Energy grant before
December 31, 2010 and shall support the creation of
Illinois coal mining coal-mining jobs, or (iii) shall
use coal gasification or integrated
gasification-combined cycle units that generate
electricity or chemicals, or both, and shall support
the creation of Illinois coal mining coal-mining jobs.
The term "placed in service" has the same meaning as
described in subsection (h) of Section 201 of the
Illinois Income Tax Act; or
(B-5) the business intends to establish a new
gasification facility at a designated location in
Illinois. As used in this Section, "new gasification
facility" means a newly constructed coal gasification
facility that generates chemical feedstocks or
transportation fuels derived from coal (which may
include, but are not limited to, methane, methanol,
and nitrogen fertilizer), that supports the creation
or retention of Illinois coal mining coal-mining jobs,
and that qualifies for financial assistance from the
Department before December 31, 2010. A new
gasification facility does not include a pilot project
located within Jefferson County or within a county
adjacent to Jefferson County for synthetic natural gas
from coal; or

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(C) the business intends to establish production
operations at a new coal mine, re-establish production
operations at a closed coal mine, or expand production
at an existing coal mine at a designated location in
Illinois not sooner than July 1, 2001; provided that
the production operations result in the creation of
150 new Illinois coal mining jobs as described in
subdivision (a)(3)(B) of this Section, and further
provided that the coal extracted from such mine is
utilized as the predominant source for a new electric
generating facility. The term "placed in service" has
the same meaning as described in subsection (h) of
Section 201 of the Illinois Income Tax Act; or
(D) the business intends to construct new
transmission facilities or upgrade existing
transmission facilities at designated locations in
Illinois, for which construction commenced not sooner
than July 1, 2001. For the purposes of this Section,
"transmission facilities" means transmission lines
with a voltage rating of 115 kilovolts or above,
including associated equipment, that transfer
electricity from points of supply to points of
delivery and that transmit a majority of the
electricity generated by a new electric generating
facility designated as a High Impact Business in
accordance with this Section. The term "placed in

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service" has the same meaning as described in
subsection (h) of Section 201 of the Illinois Income
Tax Act; or
(E) the business intends to establish a new wind
power facility at a designated location in Illinois.
For purposes of this Section, "new wind power
facility" means a newly constructed electric
generation facility, a newly constructed expansion of
an existing electric generation facility, or the
replacement of an existing electric generation
facility, including the demolition and removal of an
electric generation facility irrespective of whether
it will be replaced, placed in service or replaced on
or after July 1, 2009, that generates electricity
using wind energy devices, and such facility shall be
deemed to include any permanent structures associated
with the electric generation facility and all
associated transmission lines, substations, and other
equipment related to the generation of electricity
from wind energy devices. For purposes of this
Section, "wind energy device" means any device, with a
nameplate capacity of at least 0.5 megawatts, that is
used in the process of converting kinetic energy from
the wind to generate electricity; or
(E-5) the business intends to establish a new
utility-scale solar facility at a designated location

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in Illinois. For purposes of this Section, "new
utility-scale solar power facility" means a newly
constructed electric generation facility, or a newly
constructed expansion of an existing electric
generation facility, placed in service on or after
July 1, 2021, that (i) generates electricity using
photovoltaic cells and (ii) has a nameplate capacity
that is greater than 5,000 kilowatts, and such
facility shall be deemed to include all associated
transmission lines, substations, energy storage
facilities, and other equipment related to the
generation and storage of electricity from
photovoltaic cells; or
(F) the business commits to (i) make a minimum
investment of $500,000,000, which will be placed in
service in a qualified property, (ii) create 125
full-time equivalent jobs at a designated location in
Illinois, (iii) establish a fertilizer plant at a
designated location in Illinois that complies with the
set-back standards as described in Table 1: Initial
Isolation and Protective Action Distances in the 2012
Emergency Response Guidebook published by the United
States Department of Transportation, (iv) pay a
prevailing wage for employees at that location who are
engaged in construction activities, and (v) secure an
appropriate level of general liability insurance to

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protect against catastrophic failure of the fertilizer
plant or any of its constituent systems; in addition,
the business must agree to enter into a construction
project labor agreement including provisions
establishing wages, benefits, and other compensation
for employees performing work under the project labor
agreement at that location; for the purposes of this
Section, "fertilizer plant" means a newly constructed
or upgraded plant utilizing gas used in the production
of anhydrous ammonia and downstream nitrogen
fertilizer products for resale; for the purposes of
this Section, "prevailing wage" means the hourly cash
wages plus fringe benefits for training and
apprenticeship programs approved by the U.S.
Department of Labor, Bureau of Apprenticeship and
Training, health and welfare, insurance, vacations and
pensions paid generally, in the locality in which the
work is being performed, to employees engaged in work
of a similar character on public works; this paragraph
(F) applies only to businesses that submit an
application to the Department within 60 days after
July 25, 2013 (the effective date of Public Act
98-109); or
(G) the business intends to establish a new
cultured cell material food production facility at a
designated location in Illinois. As used in this

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paragraph (G):
"Cultured cell material food production facility"
means a facility (i) at which cultured animal cell
food is developed using animal cell culture
technology, (ii) at which production processes occur
that include the establishment of cell lines and cell
banks, manufacturing controls, and all components and
inputs, and (iii) that complies with all existing
registrations, inspections, licensing, and approvals
from all applicable and participating State and
federal food agencies, including the Department of
Agriculture, the Department of Public Health, and the
United States Food and Drug Administration, to ensure
that all food production is safe and lawful under
provisions of the Federal Food, Drug and Cosmetic Act
related to the development, production, and storage of
cultured animal cell food.
"New cultured cell material food production
facility" means a newly constructed cultured cell
material food production facility that is placed in
service on or after June 7, 2023 (the effective date of
Public Act 103-9) this amendatory Act of the 103rd
General Assembly or a newly constructed expansion of
an existing cultured cell material food production
facility, in a controlled environment, when the
improvements are placed in service on or after June 7,

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2023 (the effective date of Public Act 103-9) this
amendatory Act of the 103rd General Assembly; or and
(H) (G) the business is an existing or planned
grocery store, as that term is defined in Section 5 of
the Grocery Initiative Act, and receives financial
support under that Act within the 10 years before
submitting its application under this Act; and
(4) no later than 90 days after an application is
submitted, the Department shall notify the applicant of
the Department's determination of the qualification of the
proposed High Impact Business under this Section.
(b) Businesses designated as High Impact Businesses
pursuant to subdivision (a)(3)(A) of this Section shall
qualify for the credits and exemptions described in the
following Acts: Section 9-222 and Section 9-222.1A of the
Public Utilities Act, subsection (h) of Section 201 of the
Illinois Income Tax Act, and Section 1d of the Retailers'
Occupation Tax Act; provided that these credits and exemptions
described in these Acts shall not be authorized until the
minimum investments set forth in subdivision (a)(3)(A) of this
Section have been placed in service in qualified properties
and, in the case of the exemptions described in the Public
Utilities Act and Section 1d of the Retailers' Occupation Tax
Act, the minimum full-time equivalent jobs or full-time
retained jobs set forth in subdivision (a)(3)(A) of this
Section have been created or retained. Businesses designated

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as High Impact Businesses under this Section shall also
qualify for the exemption described in Section 5l of the
Retailers' Occupation Tax Act. The credit provided in
subsection (h) of Section 201 of the Illinois Income Tax Act
shall be applicable to investments in qualified property as
set forth in subdivision (a)(3)(A) of this Section.
(b-5) Businesses designated as High Impact Businesses
pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
(a)(3)(D), and (a)(3)(G), and (a)(3)(H) of this Section shall
qualify for the credits and exemptions described in the
following Acts: Section 51 of the Retailers' Occupation Tax
Act, Section 9-222 and Section 9-222.1A of the Public
Utilities Act, and subsection (h) of Section 201 of the
Illinois Income Tax Act; however, the credits and exemptions
authorized under Section 9-222 and Section 9-222.1A of the
Public Utilities Act, and subsection (h) of Section 201 of the
Illinois Income Tax Act shall not be authorized until the new
electric generating facility, the new gasification facility,
the new transmission facility, the new, expanded, or reopened
coal mine, or the new cultured cell material food production
facility, or the existing or planned grocery store is
operational, except that a new electric generating facility
whose primary fuel source is natural gas is eligible only for
the exemption under Section 5l of the Retailers' Occupation
Tax Act.
(b-6) Businesses designated as High Impact Businesses

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pursuant to subdivision (a)(3)(E) or (a)(3)(E-5) of this
Section shall qualify for the exemptions described in Section
5l of the Retailers' Occupation Tax Act; any business so
designated as a High Impact Business being, for purposes of
this Section, a "Wind Energy Business".
(b-7) Beginning on January 1, 2021, businesses designated
as High Impact Businesses by the Department shall qualify for
the High Impact Business construction jobs credit under
subsection (h-5) of Section 201 of the Illinois Income Tax Act
if the business meets the criteria set forth in subsection (i)
of this Section. The total aggregate amount of credits awarded
under the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
shall not exceed $20,000,000 in any State fiscal year.
(c) High Impact Businesses located in federally designated
foreign trade zones or sub-zones are also eligible for
additional credits, exemptions and deductions as described in
the following Acts: Section 9-221 and Section 9-222.1 of the
Public Utilities Act; and subsection (g) of Section 201, and
Section 203 of the Illinois Income Tax Act.
(d) Except for businesses contemplated under subdivision
(a)(3)(E), (a)(3)(E-5), or (a)(3)(G), or (a)(3)(H) of this
Section, existing Illinois businesses which apply for
designation as a High Impact Business must provide the
Department with the prospective plan for which 1,500 full-time
retained jobs would be eliminated in the event that the
business is not designated.

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

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

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

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"Underserved area" means a geographic area that meets one
or more of the following conditions:
(1) the area has a poverty rate of at least 20%
according to the latest American Community Survey;
(2) 35% or more of the families with children in the
area are living below 130% of the poverty line, according
to the latest American Community Survey;
(3) at least 20% of the households in the area receive
assistance under the Supplemental Nutrition Assistance
Program (SNAP); or
(4) the area has an average unemployment rate, as
determined by the Illinois Department of Employment
Security, that is more than 120% of the national
unemployment average, as determined by the U.S. Department
of Labor, for a period of at least 2 consecutive calendar
years preceding the date of the application.
(j) (Blank). Each contractor and subcontractor who is
engaged in and executing a High Impact Business Construction
jobs project, as defined under subsection (i) of this Section,
for a business that is entitled to a credit pursuant to
subsection (i) of this Section shall:
(1) make and keep, for a period of 5 years from the
date of the last payment made on or after June 5, 2019 (the
effective date of Public Act 101-9) on a contract or
subcontract for a High Impact Business Construction Jobs
Project, records for all laborers and other workers

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employed by the contractor or subcontractor on the
project; the records shall include:
(A) the worker's name;
(B) the worker's address;
(C) the worker's telephone number, if available;
(D) the worker's social security number;
(E) the worker's classification or
classifications;
(F) the worker's gross and net wages paid in each
pay period;
(G) the worker's number of hours worked each day;
(H) the worker's starting and ending times of work
each day;
(I) the worker's hourly wage rate;
(J) the worker's hourly overtime wage rate;
(K) the worker's race and ethnicity; and
(L) the worker's gender;
(2) no later than the 15th day of each calendar month,
provide a certified payroll for the immediately preceding
month to the taxpayer in charge of the High Impact
Business construction jobs project; within 5 business days
after receiving the certified payroll, the taxpayer shall
file the certified payroll with the Department of Labor
and the Department of Commerce and Economic Opportunity; a
certified payroll must be filed for only those calendar
months during which construction on a High Impact Business

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construction jobs project has occurred; the certified
payroll shall consist of a complete copy of the records
identified in paragraph (1) of this subsection (j), but
may exclude the starting and ending times of work each
day; the certified payroll shall be accompanied by a
statement signed by the contractor or subcontractor or an
officer, employee, or agent of the contractor or
subcontractor which avers that:
(A) he or she has examined the certified payroll
records required to be submitted by the Act and such
records are true and accurate; and
(B) the contractor or subcontractor is aware that
filing a certified payroll that he or she knows to be
false is a Class A misdemeanor.
A general contractor is not prohibited from relying on a
certified payroll of a lower-tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification.
Any contractor or subcontractor subject to this
subsection, and any officer, employee, or agent of such
contractor or subcontractor whose duty as an officer,
employee, or agent it is to file a certified payroll under this
subsection, who willfully fails to file such a certified
payroll on or before the date such certified payroll is
required by this paragraph to be filed and any person who
willfully files a false certified payroll that is false as to

10300HB0817ham001 - 26 - LRB103 04410 HLH 72543 a
any material fact is in violation of this Act and guilty of a
Class A misdemeanor.
The taxpayer in charge of the project shall keep the
records submitted in accordance with this subsection on or
after June 5, 2019 (the effective date of Public Act 101-9) for
a period of 5 years from the date of the last payment for work
on a contract or subcontract for the High Impact Business
construction jobs project.
The records submitted in accordance with this subsection
shall be considered public records, except an employee's
address, telephone number, and social security number, and
made available in accordance with the Freedom of Information
Act. The Department of Labor shall share the information with
the Department in order to comply with the awarding of a High
Impact Business construction jobs credit. A contractor,
subcontractor, or public body may retain records required
under this Section in paper or electronic format.
(j-5) Annually, until construction is completed, a company
seeking High Impact Business Construction Job credits shall
submit a report that, at a minimum, describes the projected
project scope, timeline, and anticipated budget. Once the
project has commenced, the annual report shall include actual
data for the prior year as well as projections for each
additional year through completion of the project. The
Department shall issue detailed reporting guidelines
prescribing the requirements of construction-related reports.

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

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or after February 3, 2023 (the effective date of Public Act
102-1125) this amendatory Act of the 102nd General Assembly.
(Source: P.A. 102-108, eff. 1-1-22; 102-558, eff. 8-20-21;
102-605, eff. 8-27-21; 102-662, eff. 9-15-21; 102-673, eff.
11-30-21; 102-813, eff. 5-13-22; 102-1125, eff. 2-3-23; 103-9,
eff. 6-7-23; 103-561, eff. 1-1-24; revised 3-15-24.)
(20 ILCS 655/13)
Sec. 13. Enterprise Zone construction jobs credit.
(a) Beginning on January 1, 2021, a business entity in a
certified Enterprise Zone that makes a capital investment of
at least $10,000,000 in an Enterprise Zone construction jobs
project may receive an Enterprise Zone construction jobs
credit against the tax imposed under subsections (a) and (b)
of Section 201 of the Illinois Income Tax Act in an amount
equal to 50% of the amount of the incremental income tax
attributable to Enterprise Zone construction jobs credit
employees employed in the course of completing an Enterprise
Zone construction jobs project. However, the Enterprise Zone
construction jobs credit may equal 75% of the amount of the
incremental income tax attributable to Enterprise Zone
construction jobs credit employees if the project is located
in an underserved area.
(b) A business entity seeking a credit under this Section
must submit an application to the Department and must receive
approval from the designating municipality or county and the

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

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

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Opportunity.
Upon review of the final project scope, timeline, budget,
and AUP, the Department shall issue a tax credit certificate
reflecting a percentage of the total construction job wages
paid throughout the completion of the project.
Each contractor and subcontractor who is engaged in and is
executing an Enterprise Zone construction jobs credit project
for a business that is entitled to a credit pursuant to this
Section shall:
(1) make and keep, for a period of 5 years from the
date of the last payment made on or after June 5, 2019 (the
effective date of Public Act 101-9) on a contract or
subcontract for an Enterprise Zone construction jobs
credit project, records for all laborers and other workers
employed by them on the project; the records shall
include:
(A) the worker's name;
(B) the worker's address;
(C) the worker's telephone number, if available;
(D) the worker's social security number;
(E) the worker's classification or
classifications;
(F) the worker's gross and net wages paid in each
pay period;
(G) the worker's number of hours worked each day;
(H) the worker's starting and ending times of work

10300HB0817ham001 - 32 - LRB103 04410 HLH 72543 a
each day;
(I) the worker's hourly wage rate; and
(J) the worker's hourly overtime wage rate;
(2) no later than the 15th day of each calendar month,
provide a certified payroll for the immediately preceding
month to the taxpayer in charge of the project; within 5
business days after receiving the certified payroll, the
taxpayer shall file the certified payroll with the
Department of Labor and the Department of Commerce and
Economic Opportunity; a certified payroll must be filed
for only those calendar months during which construction
on an Enterprise Zone construction jobs project has
occurred; the certified payroll shall consist of a
complete copy of the records identified in paragraph (1)
of this subsection (d), but may exclude the starting and
ending times of work each day; the certified payroll shall
be accompanied by a statement signed by the contractor or
subcontractor or an officer, employee, or agent of the
contractor or subcontractor which avers that:
(A) he or she has examined the certified payroll
records required to be submitted by the Act and such
records are true and accurate; and
(B) the contractor or subcontractor is aware that
filing a certified payroll that he or she knows to be
false is a Class A misdemeanor.
A general contractor is not prohibited from relying on a

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

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

10300HB0817ham001 - 35 - LRB103 04410 HLH 72543 a
construction jobs credit pursuant to this Section. "Enterprise
Zone construction jobs credit project" does not include the
routine operation, routine repair, or routine maintenance of
existing structures, buildings, or real property.
"Incremental income tax" means the total amount withheld
during the taxable year from the compensation of Enterprise
Zone construction jobs credit employees.
"Underserved area" means a geographic area that meets one
or more of the following conditions:
(1) the area has a poverty rate of at least 20%
according to the latest American Community Survey;
(2) 35% or more of the families with children in the
area are living below 130% of the poverty line, according
to the latest American Community Survey;
(3) at least 20% of the households in the area receive
assistance under the Supplemental Nutrition Assistance
Program (SNAP); or
(4) the area has an average unemployment rate, as
determined by the Illinois Department of Employment
Security, that is more than 120% of the national
unemployment average, as determined by the U.S. Department
of Labor, for a period of at least 2 consecutive calendar
years preceding the date of the application.
(Source: P.A. 101-9, eff. 6-5-19; 102-108, eff. 1-1-22;
102-558, eff. 8-20-21.)

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Section 15. The Reimagining Energy and Vehicles in
Illinois Act is amended by changing Sections 10, 20, 35, 45,
65, 95, and 105 as follows:
(20 ILCS 686/10)
Sec. 10. Definitions. As used in this Act:
"Advanced battery" means a battery that consists of a
battery cell that can be integrated into a module, pack, or
system to be used in energy storage applications, including a
battery used in an electric vehicle or the electric grid.
"Advanced battery component" means a component of an
advanced battery, including materials, enhancements,
enclosures, anodes, cathodes, electrolytes, cells, and other
associated technologies that comprise an advanced battery.
"Agreement" means the agreement between a taxpayer and the
Department under the provisions of Section 45 of this Act.
"Applicant" means a taxpayer that (i) operates a business
in Illinois or is planning to locate a business within the
State of Illinois and (ii) is engaged in interstate or
intrastate commerce as an electric vehicle manufacturer, an
electric vehicle component parts manufacturer, or an electric
vehicle power supply equipment manufacturer. For applications
for credits under this Act that are submitted on or after the
effective date of this amendatory Act of the 102nd General
Assembly, "applicant" also includes a taxpayer that (i)
operates a business in Illinois or is planning to locate a

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

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

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"Electric vehicle", except when referencing aircraft with
hybrid electric propulsion systems, does not include hybrid
electric vehicles, electric bicycles, or extended-range
electric vehicles that are also equipped with conventional
fueled propulsion or auxiliary engines.
"Electric vehicle manufacturer" means a new or existing
manufacturer that is primarily focused on reequipping,
expanding, or establishing a manufacturing facility in
Illinois that produces electric vehicles as defined in this
Section.
"Electric vehicle component parts manufacturer" means a
new or existing manufacturer that is focused on reequipping,
expanding, or establishing a manufacturing facility in
Illinois that produces parts or accessories used in electric
vehicles, as defined by this Section, including advanced
battery component parts. The changes to this definition of
"electric vehicle component parts manufacturer" apply to
agreements under this Act that are entered into on or after the
effective date of this amendatory Act of the 102nd General
Assembly.
"Electric vehicle power supply equipment" means the
equipment used specifically for the purpose of delivering
electricity to an electric vehicle, including hydrogen fuel
cells or solar refueling infrastructure.
"Electric vehicle power supply manufacturer" means a new
or existing manufacturer that is focused on reequipping,

10300HB0817ham001 - 40 - LRB103 04410 HLH 72543 a
expanding, or establishing a manufacturing facility in
Illinois that produces electric vehicle power supply equipment
used for the purpose of delivering electricity to an electric
vehicle, including hydrogen fuel cell or solar refueling
infrastructure.
"Electric vehicle powertrain technology" means equipment
used to convert electricity for use in aerospace propulsion.
"Electric vehicle powertrain technology manufacturer"
means a new or existing manufacturer that is focused on
reequipping, expanding or establishing a manufacturing
facility in Illinois that develops and validates electric
vehicle powertrain technology for use in aerospace propulsion.
"Electric vertical takeoff and landing (eVTOL) aircraft"
means a fully electric aircraft that lands and takes off
vertically.
"Energy Transition Area" means a county with less than
100,000 people or a municipality that contains one or more of
the following:
(1) a fossil fuel plant that was retired from service
or has significant reduced service within 6 years before
the time of the application or will be retired or have
service significantly reduced within 6 years following the
time of the application; or
(2) a coal mine that was closed or had operations
significantly reduced within 6 years before the time of
the application or is anticipated to be closed or have

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

10300HB0817ham001 - 42 - LRB103 04410 HLH 72543 a
"New employee" means a newly-hired full-time employee
employed to work at the project site and whose work is directly
related to the project.
"Noncompliance date" means, in the case of a taxpayer that
is not complying with the requirements of the agreement or the
provisions of this Act, the day following the last date upon
which the taxpayer was in compliance with the requirements of
the agreement and the provisions of this Act, as determined by
the Director, pursuant to Section 70.
"Pass-through entity" means an entity that is exempt from
the tax under subsection (b) or (c) of Section 205 of the
Illinois Income Tax Act.
"Placed in service" means the state or condition of
readiness, availability for a specifically assigned function,
and the facility is constructed and ready to conduct its
facility operations to manufacture goods.
"Professional employer organization" (PEO) means an
employee leasing company, as defined in Section 206.1 of the
Illinois Unemployment Insurance Act.
"Program" means the Reimagining Energy and Vehicles in
Illinois Program (the REV Illinois Program) established in
this Act.
"Project" or "REV Illinois Project" means a for-profit
economic development activity for the manufacture of electric
vehicles, electric vehicle component parts, electric vehicle
power supply equipment, or renewable energy products, which is

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designated by the Department as a REV Illinois Project and is
the subject of an agreement.
"Recycling facility" means a location at which the
taxpayer disposes of batteries and other component parts in
manufacturing of electric vehicles, electric vehicle component
parts, or electric vehicle power supply equipment.
"Related member" means a person that, with respect to the
taxpayer during any portion of the taxable year, is any one of
the following:
(1) An individual stockholder, if the stockholder and
the members of the stockholder's family (as defined in
Section 318 of the Internal Revenue Code) own directly,
indirectly, beneficially, or constructively, in the
aggregate, at least 50% of the value of the taxpayer's
outstanding stock.
(2) A partnership, estate, trust and any partner or
beneficiary, if the partnership, estate, or trust, and its
partners or beneficiaries own directly, indirectly,
beneficially, or constructively, in the aggregate, at
least 50% of the profits, capital, stock, or value of the
taxpayer.
(3) A corporation, and any party related to the
corporation in a manner that would require an attribution
of stock from the corporation under the attribution rules
of Section 318 of the Internal Revenue Code, if the
Taxpayer owns directly, indirectly, beneficially, or

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constructively at least 50% of the value of the
corporation's outstanding stock.
(4) A corporation and any party related to that
corporation in a manner that would require an attribution
of stock from the corporation to the party or from the
party to the corporation under the attribution rules of
Section 318 of the Internal Revenue Code, if the
corporation and all such related parties own in the
aggregate at least 50% of the profits, capital, stock, or
value of the taxpayer.
(5) A person to or from whom there is an attribution of
stock ownership in accordance with Section 1563(e) of the
Internal Revenue Code, except, for purposes of determining
whether a person is a related member under this paragraph,
20% shall be substituted for 5% wherever 5% appears in
Section 1563(e) of the Internal Revenue Code.
"Renewable energy" means energy produced using the
materials and sources of energy through which renewable energy
resources are generated.
"Renewable energy manufacturer" means a manufacturer whose
primary function is to manufacture or assemble: (i) equipment,
systems, or products used to produce renewable or nuclear
energy; (ii) products used for energy conservation, storage,
or grid efficiency purposes; or (iii) component parts for that
equipment or those systems or products.
"Renewable energy resources" has the meaning ascribed to

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

10300HB0817ham001 - 46 - LRB103 04410 HLH 72543 a
if applicable, retained employees, and on training costs for
such employees at the applicant's project.
"REV construction jobs credit" means a credit agreed to
between the Department and the applicant under this Act that
is based on the incremental income tax attributable to
construction wages paid in connection with construction of the
project facilities.
"Statewide baseline" means the total number of full-time
employees of the applicant and any related member employed by
such entities at the time of application for incentives under
this Act.
"Taxpayer" means an individual, corporation, partnership,
or other entity that has a legal obligation to pay Illinois
income taxes and file an Illinois income tax return.
"Training costs" means costs incurred to upgrade the
technological skills of full-time employees in Illinois and
includes: curriculum development; training materials
(including scrap product costs); trainee domestic travel
expenses; instructor costs (including wages, fringe benefits,
tuition and domestic travel expenses); rent, purchase or lease
of training equipment; and other usual and customary training
costs. "Training costs" do not include costs associated with
travel outside the United States (unless the Taxpayer receives
prior written approval for the travel by the Director based on
a showing of substantial need or other proof the training is
not reasonably available within the United States), wages and

10300HB0817ham001 - 47 - LRB103 04410 HLH 72543 a
fringe benefits of employees during periods of training, or
administrative cost related to full-time employees of the
taxpayer.
"Underserved area" means any geographic area areas as
defined in Section 5-5 of the Economic Development for a
Growing Economy Tax Credit Act.
(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
102-1112, eff. 12-21-22; 102-1125, eff. 2-3-23.)
(20 ILCS 686/20)
Sec. 20. REV Illinois Program; project applications.
(a) The Reimagining Energy and Vehicles in Illinois (REV
Illinois) Program is hereby established and shall be
administered by the Department. The Program will provide
financial incentives to any one or more of the following: (1)
eligible manufacturers of electric vehicles, electric vehicle
component parts, and electric vehicle power supply equipment;
(2) battery recycling and reuse manufacturers; (3) battery raw
materials refining service providers; or (4) renewable energy
manufacturers.
(b) Any taxpayer planning a project to be located in
Illinois may request consideration for designation of its
project as a REV Illinois Project, by formal written letter of
request or by formal application to the Department, in which
the applicant states its intent to make at least a specified
level of investment and intends to hire a specified number of

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full-time employees at a designated location in Illinois. As
circumstances require, the Department shall require a formal
application from an applicant and a formal letter of request
for assistance.
(c) In order to qualify for credits under the REV Illinois
Program, an applicant must:
(1) if the applicant is an electric vehicle
manufacturer:
(A) make an investment of at least $1,500,000,000
in capital improvements at the project site;
(B) to be placed in service within the State
within a 60-month period after approval of the
application; and
(C) create at least 500 new full-time employee
jobs; or
(2) if the applicant is an electric vehicle component
parts manufacturer, or a renewable energy manufacturer, a
green steel manufacturer, or an entity engaged in
research, development, or manufacturing of eVTOL aircraft
or hybrid-electric or fully electric propulsion systems
for airliners:
(A) make an investment of at least $300,000,000 in
capital improvements at the project site;
(B) manufacture one or more parts that are
primarily used for electric vehicle, renewable energy,
or green steel manufacturing;

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(C) to be placed in service within the State
within a 60-month period after approval of the
application; and
(D) create at least 150 new full-time employee
jobs; or
(3) if the agreement is entered into before the
effective date of this amendatory Act of the 102nd General
Assembly and the applicant is an electric vehicle
manufacturer, an electric vehicle power supply equipment
manufacturer, an electric vehicle component part
manufacturer, renewable energy manufacturer, or green
steel manufacturer that does not qualify under paragraph
(2) above, a battery recycling and reuse manufacturer, or
a battery raw materials refining service provider:
(A) make an investment of at least $20,000,000 in
capital improvements at the project site;
(B) for electric vehicle component part
manufacturers, manufacture one or more parts that are
primarily used for electric vehicle manufacturing;
(C) to be placed in service within the State
within a 48-month period after approval of the
application; and
(D) create at least 50 new full-time employee
jobs; or
(3.1) if the agreement is entered into on or after the
effective date of this amendatory Act of the 102nd General

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Assembly and the applicant is an electric vehicle
manufacturer, an electric vehicle power supply equipment
manufacturer, an electric vehicle component part
manufacturer, a renewable energy manufacturer, a green
steel manufacturer, or an entity engaged in research,
development, or manufacturing of eVTOL aircraft or
hybrid-electric or fully electric propulsion systems for
airliners that does not qualify under paragraph (2) above,
a renewable energy manufacturer that does not qualify
under paragraph (2) above, a battery recycling and reuse
manufacturer, or a battery raw materials refining service
provider:
(A) make an investment of at least $2,500,000 in
capital improvements at the project site;
(B) in the case of electric vehicle component part
manufacturers, manufacture one or more parts that are
used for electric vehicle manufacturing;
(C) to be placed in service within the State
within a 48-month period after approval of the
application; and
(D) create the lesser of 50 new full-time employee
jobs or new full-time employee jobs equivalent to 10%
of the Statewide baseline applicable to the taxpayer
and any related member at the time of application; or
(4) if the agreement is entered into before the
effective date of this amendatory Act of the 102nd General

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Assembly and the applicant is an electric vehicle
manufacturer or electric vehicle component parts
manufacturer with existing operations within Illinois that
intends to convert or expand, in whole or in part, the
existing facility from traditional manufacturing to
primarily electric vehicle manufacturing, electric vehicle
component parts manufacturing, an or electric vehicle
power supply equipment manufacturing, or a green steel
manufacturer:
(A) make an investment of at least $100,000,000 in
capital improvements at the project site;
(B) to be placed in service within the State
within a 60-month period after approval of the
application; and
(C) create the lesser of 75 new full-time employee
jobs or new full-time employee jobs equivalent to 10%
of the Statewide baseline applicable to the taxpayer
and any related member at the time of application;
(4.1) if the agreement is entered into on or after the
effective date of this amendatory Act of the 102nd General
Assembly and the applicant (i) is an electric vehicle
manufacturer, an electric vehicle component parts
manufacturer, or a renewable energy manufacturer, a green
steel manufacturer, or an entity engaged in research,
development, or manufacturing of eVTOL aircraft or hybrid
electric or fully electric propulsion systems for

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airliners and (ii) has existing operations within Illinois
that the applicant intends to convert or expand, in whole
or in part, from traditional manufacturing to electric
vehicle manufacturing, electric vehicle component parts
manufacturing, renewable energy manufacturing, or electric
vehicle power supply equipment manufacturing:
(A) make an investment of at least $100,000,000 in
capital improvements at the project site;
(B) to be placed in service within the State
within a 60-month period after approval of the
application; and
(C) create the lesser of 50 new full-time employee
jobs or new full-time employee jobs equivalent to 10%
of the Statewide baseline applicable to the taxpayer
and any related member at the time of application; or
(5) if the agreement is entered into on or after the
effective date of the changes made to this Section by this
amendatory Act of the 103rd General Assembly and before
June 1, 2024 and the applicant (i) is an electric vehicle
manufacturer, an electric vehicle component parts
manufacturer, or a renewable energy manufacturer or (ii)
has existing operations within Illinois that the applicant
intends to convert or expand, in whole or in part, from
traditional manufacturing to electric vehicle
manufacturing, electric vehicle component parts
manufacturing, renewable energy manufacturing, or electric

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vehicle power supply equipment manufacturing:
(A) make an investment of at least $500,000,000 in
capital improvements at the project site;
(B) to be placed in service within the State
within a 60-month period after approval of the
application; and
(C) retain at least 800 full-time employee jobs at
the project.
(d) For agreements entered into prior to April 19, 2022
(the effective date of Public Act 102-700), for any applicant
creating the full-time employee jobs noted in subsection (c),
those jobs must have a total compensation equal to or greater
than 120% of the average wage paid to full-time employees in
the county where the project is located, as determined by the
U.S. Bureau of Labor Statistics. For agreements entered into
on or after April 19, 2022 (the effective date of Public Act
102-700), for any applicant creating the full-time employee
jobs noted in subsection (c), those jobs must have a
compensation equal to or greater than 120% of the average wage
paid to full-time employees in a similar position within an
occupational group in the county where the project is located,
as determined by the Department.
(e) For any applicant, within 24 months after being placed
in service, it must certify to the Department that it is carbon
neutral or has attained certification under one of more of the
following green building standards:

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(1) BREEAM for New Construction or BREEAM In-Use;
(2) ENERGY STAR;
(3) Envision;
(4) ISO 50001 - energy management;
(5) LEED for Building Design and Construction or LEED
for Building Operations and Maintenance;
(6) Green Globes for New Construction or Green Globes
for Existing Buildings; or
(7) UL 3223.
(f) Each applicant must outline its hiring plan and
commitment to recruit and hire full-time employee positions at
the project site. The hiring plan may include a partnership
with an institution of higher education to provide
internships, including, but not limited to, internships
supported by the Clean Jobs Workforce Network Program, or
full-time permanent employment for students at the project
site. Additionally, the applicant may create or utilize
participants from apprenticeship programs that are approved by
and registered with the United States Department of Labor's
Bureau of Apprenticeship and Training. The applicant may apply
for apprenticeship education expense credits in accordance
with the provisions set forth in 14 Ill. Adm. Code 522. Each
applicant is required to report annually, on or before April
15, on the diversity of its workforce in accordance with
Section 50 of this Act. For existing facilities of applicants
under paragraph (3) of subsection (b) above, if the taxpayer

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

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to the extent that the taxpayer's application otherwise
satisfies the terms and conditions of this Act and is approved
by the Department. An applicant with an existing agreement
under the Economic Development for a Growing Economy Tax
Credit Act may submit an application for an agreement under
this Act after it terminates any existing agreement under the
Economic Development for a Growing Economy Tax Credit Act with
respect to the same address or location. If a project that is
subject to an existing agreement under the Economic
Development for a Growing Economy Tax Credit Act meets the
requirements to be designated as a REV Illinois project under
this Act, including for actions undertaken prior to the
effective date of this Act, the taxpayer that is subject to
that existing agreement under the Economic Development for a
Growing Economy Tax Credit Act may apply to the Department to
amend the agreement to allow the project to become a
designated REV Illinois project. Following the amendment, time
accrued during which the project was eligible for credits
under the existing agreement under the Economic Development
for a Growing Economy Tax Credit Act shall count toward the
duration of the credit subject to limitations described in
Section 40 of this Act.
(i) If, at any time following the designation of a project
as a REV Illinois Project by the Department and prior to the
termination or expiration of an agreement under this Act, the
project ceases to qualify as a REV Illinois project because

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

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102-1112, eff. 12-21-22; 102-1125, eff. 2-3-23; 103-9, eff.
6-7-23.)
(20 ILCS 686/35)
Sec. 35. Relocation of jobs in Illinois. A taxpayer is not
entitled to claim a credit provided by this Act with respect to
any jobs that the Taxpayer relocates from one site in Illinois
to another site in Illinois unless the taxpayer has agreed to
hire the minimum number of new employees and the Department
has determined that the expansion cannot reasonably be
accommodated within the municipality in which the business is
located. Any full-time employee relocated to Illinois in
connection with a qualifying project is deemed to be a new
employee for purposes of this Act. Determinations under this
Section shall be made by the Department.
(Source: P.A. 102-669, eff. 11-16-21.)
(20 ILCS 686/45)
Sec. 45. Contents of agreements with applicants.
(a) The Department shall enter into an agreement with an
applicant that is awarded a credit under this Act. The
agreement shall include all of the following:
(1) A detailed description of the project that is the
subject of the agreement, including the location and
amount of the investment and jobs created or retained.
(2) The duration of the credit, the first taxable year

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for which the credit may be awarded, and the first taxable
year in which the credit may be used by the taxpayer.
(3) The credit amount that will be allowed for each
taxable year.
(4) For a project qualified under paragraphs (1), (2),
(4), or (5) of subsection (c) of Section 20, a requirement
that the taxpayer shall maintain operations at the project
location a minimum number of years not to exceed 15. For a
project qualified under paragraph (3) of subsection (c) of
Section 20, a requirement that the taxpayer shall maintain
operations at the project location a minimum number of
years not to exceed 10.
(5) A specific method for determining the number of
new employees and if applicable, retained employees,
employed during a taxable year.
(6) A requirement that the taxpayer shall annually
report to the Department the number of new employees, the
incremental income tax withheld in connection with the new
employees, and any other information the Department deems
necessary and appropriate to perform its duties under this
Act.
(7) A requirement that the Director is authorized to
verify with the appropriate State agencies the amounts
reported under paragraph (6), and after doing so shall
issue a certificate to the taxpayer stating that the
amounts have been verified.

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(8) A requirement that the taxpayer shall provide
written notification to the Director not more than 30 days
after the taxpayer makes or receives a proposal that would
transfer the taxpayer's State tax liability obligations to
a successor taxpayer.
(9) A detailed description of the number of new
employees to be hired, and the occupation and payroll of
full-time jobs to be created or retained because of the
project.
(10) The minimum investment the taxpayer will make in
capital improvements, the time period for placing the
property in service, and the designated location in
Illinois for the investment.
(11) A requirement that the taxpayer shall provide
written notification to the Director and the Director's
designee not more than 30 days after the taxpayer
determines that the minimum job creation or retention,
employment payroll, or investment no longer is or will be
achieved or maintained as set forth in the terms and
conditions of the agreement. Additionally, the
notification should outline to the Department the number
of layoffs, date of the layoffs, and detail taxpayer's
efforts to provide career and training counseling for the
impacted workers with industry-related certifications and
trainings.
(12) If applicable, a provision that, if the total

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number of new employees falls below a specified level, the
allowance of credit shall be suspended until the number of
new employees equals or exceeds the agreement amount.
(13) If applicable, a provision that specifies the
statewide baseline at the time of application for retained
employees. The agreement must have a provision addressing
if the total number of retained employees falls below the
lesser of the statewide baseline or the retention
requirements specified in the agreement, the allowance of
the credit shall be suspended until the number of retained
employees equals or exceeds the agreement amount.
(14) A detailed description of the items for which the
costs incurred by the Taxpayer will be included in the
limitation on the Credit provided in Section 40.
(15) If the agreement is entered into before the
effective date of the changes made to this Section by this
amendatory Act of the 103rd General Assembly, a provision
stating that if the taxpayer fails to meet either the
investment or job creation and retention requirements
specified in the agreement during the entire 5-year period
beginning on the first day of the first taxable year in
which the agreement is executed and ending on the last day
of the fifth taxable year after the agreement is executed,
then the agreement is automatically terminated on the last
day of the fifth taxable year after the agreement is
executed, and the taxpayer is not entitled to the award of

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any credits for any of that 5-year period. If the
agreement is entered into on or after the effective date
of the changes made to this Section by this amendatory Act
of the 103rd General Assembly, a provision stating that if
the taxpayer fails to meet either the investment or job
creation and retention requirements specified in the
agreement during the entire 10-year period beginning on
the effective date of the agreement and ending 10 years
after the effective date of the agreement, then the
agreement is automatically terminated, and the taxpayer is
not entitled to the award of any credits for any of that
10-year period.
(16) A provision stating that if the taxpayer ceases
principal operations with the intent to permanently shut
down the project in the State during the term of the
Agreement, then the entire credit amount awarded to the
taxpayer prior to the date the taxpayer ceases principal
operations shall be returned to the Department and shall
be reallocated to the local workforce investment area in
which the project was located.
(17) A provision stating that the Taxpayer must
provide the reports outlined in Sections 50 and 55 on or
before April 15 each year.
(18) A provision requiring the taxpayer to report
annually its contractual obligations or otherwise with a
recycling facility for its operations.

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(19) Any other performance conditions or contract
provisions the Department determines are necessary or
appropriate.
(20) Each taxpayer under paragraph (1) of subsection
(c) of Section 20 above shall maintain labor neutrality
toward any union organizing campaign for any employees of
the taxpayer assigned to work on the premises of the REV
Illinois Project Site. This paragraph shall not apply to
an electric vehicle manufacturer, electric vehicle
component part manufacturer, electric vehicle power supply
manufacturer, or renewable energy manufacturer, or any
joint venture including an electric vehicle manufacturer,
electric vehicle component part manufacturer, electric
vehicle power supply manufacturer, or renewable energy
manufacturer, or an entity engaged in eVTOL or
hybrid-electric or fully electric propulsion systems for
airliners research, development, or manufacturing, who is
subject to collective bargaining agreement entered into
prior to the taxpayer filing an application pursuant to
this Act.
(b) The Department shall post on its website the terms of
each agreement entered into under this Act. Such information
shall be posted within 10 days after entering into the
agreement and must include the following:
(1) the name of the taxpayer;
(2) the location of the project;

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(3) the estimated value of the credit;
(4) the number of new employee jobs and, if
applicable, number of retained employee jobs at the
project; and
(5) whether or not the project is in an underserved
area or energy transition area.
(Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23;
103-9, eff. 6-7-23.)
(20 ILCS 686/65)
Sec. 65. REV Construction Jobs Credits Certified payroll.
(a) Each REV program participant contractor and
subcontractor that is engaged in construction work on project
facilities for a taxpayer who seeks to apply for a REV
Construction Jobs credit shall annually, until construction is
completed, submit a report that, at a minimum, describes the
projected project scope, timeline, and anticipated budget.
Once the project has commenced, the annual report shall
include actual data for the prior year as well as projections
for each additional year through completion of the project.
The Department shall issue detailed reporting guidelines
prescribing the requirements of construction related reports. :
In order to receive credit for construction expenses, the
company must provide the Department of Commerce and Economic
Opportunity with evidence that a certified third-party
executed an Agreed-Upon Procedure (AUP) verifying the

10300HB0817ham001 - 65 - LRB103 04410 HLH 72543 a
construction expenses or accept the standard construction wage
expense estimated by the Department of Commerce and Economic
Opportunity.
Upon review of the final project scope, timeline, budget,
and AUP, the Department shall issue a tax credit certificate
reflecting a percentage of the total construction job wages
paid throughout the completion of the project.
(1) make and keep, for a period of 5 years from the
date of the last payment made on a contract or subcontract
for construction of facilities for a REV Illinois Project
pursuant to an agreement, records of all laborers and
other workers employed by the contractor or subcontractor
on the project; the records shall include:
(A) the worker's name;
(B) the worker's address;
(C) the worker's telephone number, if available;
(D) the worker's social security number;
(E) the worker's classification or
classifications;
(F) the worker's gross and net wages paid in each
pay period;
(G) the worker's number of hours worked in each
day;
(H) the worker's starting and ending times of work
each day;
(I) the worker's hourly wage rate; and

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(J) the worker's hourly overtime wage rate; and
(2) no later than the 15th day of each calendar month,
provide a certified payroll for the immediately preceding
month to the taxpayer in charge of the project; within 5
business days after receiving the certified payroll, the
Taxpayer shall file the certified payroll with the
Department of Labor and the Department; a certified
payroll must be filed for only those calendar months
during which construction on the REV Illinois Project
facilities has occurred; the certified payroll shall
consist of a complete copy of the records identified in
paragraph (1), but may exclude the starting and ending
times of work each day; the certified payroll shall be
accompanied by a statement signed by the contractor or
subcontractor or an officer, employee, or agent of the
contractor or subcontractor which avers that:
(A) he or she has examined the certified payroll
records required to be submitted by the Act and such
records are true and accurate; and
(B) the contractor or subcontractor is aware that
filing a certified payroll that he or she knows to be
false is a Class A misdemeanor.
A general contractor is not prohibited from relying on a
certified payroll of a lower-tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification.

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

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or public body may retain records required under this Section
in paper or electronic format.
(e) Upon 7 business days' notice, the taxpayer contractor
and each subcontractor shall make available to any State
agency and to federal, State, or local law enforcement
agencies and prosecutors for inspection and copying at a
location within this State during reasonable hours, the report
described in subsection (a) records identified in paragraph
(1) of this subsection to the Taxpayer in charge of the
Project, its officers and agents, the Director of the
Department of Labor and his/her deputies and agents, and to
federal, State, or local law enforcement agencies and
prosecutors.
(Source: P.A. 102-669, eff. 11-16-21.)
(20 ILCS 686/95)
Sec. 95. Utility tax exemptions for REV Illinois Project
sites. The Department may certify a taxpayer with a REV
Illinois credit for a Project that meets the qualifications
under Section paragraphs (1), (2), and (4), (4.1), or (5) of
subsection (c) of Section 20, subject to an agreement under
this Act for an exemption from the tax imposed at the project
site by Section 2-4 of the Electricity Excise Tax Law. To
receive such certification, the taxpayer must be registered to
self-assess that tax. The taxpayer is also exempt from any
additional charges added to the taxpayer's utility bills at

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

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certification. The Department of Revenue shall notify the
public utilities of the exempt status of any taxpayer
certified for exemption under this Act from the electricity
excise tax or pass-on charges. The exemption status shall take
effect within 3 months after certification of the taxpayer and
notice to the Department of Revenue by the Department.
(Source: P.A. 102-669, eff. 11-16-21.)
(20 ILCS 686/105)
Sec. 105. Building materials exemptions for REV Illinois
Project sites.
(a) The Department may certify a Taxpayer with a REV
Illinois Project that meets the qualifications under
paragraphs (1), (2), or (4), (4.1), or (5) of subsection (c) of
Section 20, subject to an agreement under this Act, for an
exemption from any State or local use tax or retailers'
occupation tax on building materials for the construction of
its project facilities. The taxpayer must meet any criteria
for certification set by the Department under this Act.
The Department shall determine the period during which the
exemption from State and local use tax and retailers'
occupation tax are in effect, but in no event shall exceed 5
years in accordance with Section 5m of the Retailers'
Occupation Tax Act.
The Department is authorized to promulgate rules and
regulations to carry out the provisions of this Section,

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including procedures to apply for the exemption; to define the
amounts and types of eligible investments that an applicant
must make in order to receive tax exemption; to approve such
tax exemption for an applicant whose investments are not yet
placed in service; and to require that an applicant granted
exemption repay the exempted amount if the applicant fails to
comply with the terms and conditions of the agreement with the
Department.
Upon certification by the Department under this Section,
the Department shall notify the Department of Revenue of the
certification. The exemption status shall take effect within 3
months after certification of the taxpayer and notice to the
Department of Revenue by the Department.
(Source: P.A. 102-669, eff. 11-16-21.)
Section 20. The Illinois Income Tax Act is amended by
adding Section 241 as follows:
(35 ILCS 5/241 new)
Sec. 241. Credit for quantum computing campus enterprise
zones.
(a) A taxpayer who has been awarded a credit by the
Department of Commerce and Economic Opportunity under Section
605-115 of the Department of Commerce and Economic Opportunity
Law of the Civil Administrative Code of Illinois is entitled
to a credit against the taxes imposed under subsections (a)

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

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250.
Section 25. The Economic Development for a Growing Economy
Tax Credit Act is amended by changing Sections 5-5, 5-15,
5-20, 5-35, 5-45, and 5-56 as follows:
(35 ILCS 10/5-5)
Sec. 5-5. Definitions. As used in this Act:
"Agreement" means the Agreement between a Taxpayer and the
Department under the provisions of Section 5-50 of this Act.
"Applicant" means a Taxpayer that is operating a business
located or that the Taxpayer plans to locate within the State
of Illinois and that is engaged in interstate or intrastate
commerce for the purpose of manufacturing, processing,
assembling, warehousing, or distributing products, conducting
research and development, providing tourism services, or
providing services in interstate commerce, office industries,
or agricultural processing, but excluding retail, retail food,
health, or professional services, and services delivered to
business customer sites. "Applicant" does not include a
Taxpayer who closes or substantially reduces an operation at
one location in the State and relocates substantially the same
operation to another location in the State. This does not
prohibit a Taxpayer from expanding its operations at another
location in the State, provided that existing operations of a
similar nature located within the State are not closed or

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

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

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minimum number of hours during which the employee is scheduled
to be present at the EDGE project location.
"Incremental Income Tax" means the total amount withheld
during the taxable year from the compensation of New Employees
and, if applicable, retained employees under Article 7 of the
Illinois Income Tax Act arising from employment at a project
that is the subject of an Agreement.
"New Construction EDGE Agreement" means the Agreement
between a Taxpayer and the Department under the provisions of
Section 5-51 of this Act.
"New Construction EDGE Credit" means an amount agreed to
between the Department and the Applicant under this Act as
part of a New Construction EDGE Agreement that does not exceed
50% of the Incremental Income Tax attributable to New
Construction EDGE Employees at the Applicant's project;
however, if the New Construction EDGE Project is located in an
underserved area, then the amount of the New Construction EDGE
Credit may not exceed 75% of the Incremental Income Tax
attributable to New Construction EDGE Employees at the
Applicant's New Construction EDGE Project.
"New Construction EDGE Employee" means a laborer or worker
who is employed by a an Illinois contractor or subcontractor
in the actual construction work on the site of a New
Construction EDGE Project, pursuant to a New Construction EDGE
Agreement.
"New Construction EDGE Incremental Income Tax" means the

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total amount withheld during the taxable year from the
compensation of New Construction EDGE Employees.
"New Construction EDGE Project" means the building of a
Taxpayer's structure or building, or making improvements of
any kind to real property. "New Construction EDGE Project"
does not include the routine operation, routine repair, or
routine maintenance of existing structures, buildings, or real
property.
"New Employee" means:
(a) A Full-time Employee first employed by a Taxpayer
at in the project, or assigned to the project as their
primary work location, that is the subject of an Agreement
and who is hired after the Taxpayer enters into the tax
credit Agreement.
(b) The term "New Employee" does not include:
(1) an employee of the Taxpayer who performs a job
that was previously performed by another employee, if
that job existed for at least 6 months before hiring
the employee;
(2) an employee of the Taxpayer who was previously
employed in Illinois by a Related Member of the
Taxpayer and whose employment was shifted to the
Taxpayer after the Taxpayer entered into the tax
credit Agreement; or
(3) a child, grandchild, parent, or spouse, other
than a spouse who is legally separated from the

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individual, of any individual who has a direct or an
indirect ownership interest of at least 5% in the
profits, capital, or value of the Taxpayer.
(c) Notwithstanding paragraph (1) of subsection (b),
an employee may be considered a New Employee under the
Agreement if the employee performs a job that was
previously performed by an employee who was:
(1) treated under the Agreement as a New Employee;
and
(2) promoted by the Taxpayer to another job.
(d) Notwithstanding subsection (a), the Department may
award Credit to an Applicant with respect to an employee
hired prior to the date of the Agreement if:
(1) the Applicant is in receipt of a letter from
the Department stating an intent to enter into a
credit Agreement;
(2) the letter described in paragraph (1) is
issued by the Department not later than 15 days after
the effective date of this Act; and
(3) the employee was hired after the date the
letter described in paragraph (1) was issued.
"Noncompliance Date" means, in the case of a Taxpayer that
is not complying with the requirements of the Agreement or the
provisions of this Act, the day following the last date upon
which the Taxpayer was in compliance with the requirements of
the Agreement and the provisions of this Act, as determined by

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the Director, pursuant to Section 5-65.
"Pass Through Entity" means an entity that is exempt from
the tax under subsection (b) or (c) of Section 205 of the
Illinois Income Tax Act.
"Professional Employer Organization" (PEO) means an
employee leasing company, as defined in Section 206.1(A)(2) of
the Illinois Unemployment Insurance Act.
"Related Member" means a person that, with respect to the
Taxpayer during any portion of the taxable year, is any one of
the following:
(1) An individual stockholder, if the stockholder and
the members of the stockholder's family (as defined in
Section 318 of the Internal Revenue Code) own directly,
indirectly, beneficially, or constructively, in the
aggregate, at least 50% of the value of the Taxpayer's
outstanding stock.
(2) A partnership, estate, or trust and any partner or
beneficiary, if the partnership, estate, or trust, and its
partners or beneficiaries own directly, indirectly,
beneficially, or constructively, in the aggregate, at
least 50% of the profits, capital, stock, or value of the
Taxpayer.
(3) A corporation, and any party related to the
corporation in a manner that would require an attribution
of stock from the corporation to the party or from the
party to the corporation under the attribution rules of

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Section 318 of the Internal Revenue Code, if the Taxpayer
owns directly, indirectly, beneficially, or constructively
at least 50% of the value of the corporation's outstanding
stock.
(4) A corporation and any party related to that
corporation in a manner that would require an attribution
of stock from the corporation to the party or from the
party to the corporation under the attribution rules of
Section 318 of the Internal Revenue Code, if the
corporation and all such related parties own in the
aggregate at least 50% of the profits, capital, stock, or
value of the Taxpayer.
(5) A person to or from whom there is attribution of
stock ownership in accordance with Section 1563(e) of the
Internal Revenue Code, except, for purposes of determining
whether a person is a Related Member under this paragraph,
20% shall be substituted for 5% wherever 5% appears in
Section 1563(e) of the Internal Revenue Code.
"Startup taxpayer" means, for Agreements that are executed
before the effective date of the changes made to this Section
by this amendatory Act of the 103rd General Assembly, a
corporation, partnership, or other entity incorporated or
organized no more than 5 years before the filing of an
application for an Agreement that has never had any Illinois
income tax liability, excluding any Illinois income tax
liability of a Related Member which shall not be attributed to

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the startup taxpayer. "Startup taxpayer" means, for Agreements
that are executed on or after the effective date of this
amendatory Act of the 103rd General Assembly, a corporation,
partnership, or other entity that is incorporated or organized
no more than 10 years before the filing of an application for
an Agreement and that has never had any Illinois income tax
liability. For the purpose of determining whether the taxpayer
has had any Illinois income tax liability, the Illinois income
tax liability of a Related Member shall not be attributed to
the startup taxpayer.
"Taxpayer" means an individual, corporation, partnership,
or other entity that has any Illinois Income Tax liability.
Until July 1, 2022, "underserved area" means a geographic
area that meets one or more of the following conditions:
(1) the area has a poverty rate of at least 20%
according to the latest federal decennial census;
(2) 75% or more of the children in the area
participate in the federal free lunch program according to
reported statistics from the State Board of Education;
(3) at least 20% of the households in the area receive
assistance under the Supplemental Nutrition Assistance
Program (SNAP); or
(4) the area has an average unemployment rate, as
determined by the Illinois Department of Employment
Security, that is more than 120% of the national
unemployment average, as determined by the U.S. Department

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of Labor, for a period of at least 2 consecutive calendar
years preceding the date of the application.
On and after July 1, 2022, "underserved area" means a
geographic area that meets one or more of the following
conditions:
(1) the area has a poverty rate of at least 20%
according to the latest American Community Survey;
(2) 35% or more of the families with children in the
area are living below 130% of the poverty line, according
to the latest American Community Survey;
(3) at least 20% of the households in the area receive
assistance under the Supplemental Nutrition Assistance
Program (SNAP); or
(4) the area has an average unemployment rate, as
determined by the Illinois Department of Employment
Security, that is more than 120% of the national
unemployment average, as determined by the U.S. Department
of Labor, for a period of at least 2 consecutive calendar
years preceding the date of the application.
(Source: P.A. 102-330, eff. 1-1-22; 102-700, eff. 4-19-22;
102-1125, eff. 2-3-23; 103-9, eff. 6-7-23.)
(35 ILCS 10/5-15)
Sec. 5-15. Tax Credit Awards. Subject to the conditions
set forth in this Act, a Taxpayer is entitled to a Credit
against or, as described in subsection (g) of this Section, a

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

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Income Tax Act.
(1) The election under this subsection (f) may be made
only by a Taxpayer that (i) is primarily engaged in one of
the following business activities: water purification and
treatment, motor vehicle metal stamping, automobile
manufacturing, automobile and light duty motor vehicle
manufacturing, motor vehicle manufacturing, light truck
and utility vehicle manufacturing, heavy duty truck
manufacturing, motor vehicle body manufacturing, cable
television infrastructure design or manufacturing, or
wireless telecommunication or computing terminal device
design or manufacturing for use on public networks and
(ii) meets the following criteria:
(A) the Taxpayer (i) had an Illinois net loss or an
Illinois net loss deduction under Section 207 of the
Illinois Income Tax Act for the taxable year in which
the Credit is awarded, (ii) employed a minimum of
1,000 full-time employees in this State during the
taxable year in which the Credit is awarded, (iii) has
an Agreement under this Act on December 14, 2009 (the
effective date of Public Act 96-834), and (iv) is in
compliance with all provisions of that Agreement;
(B) the Taxpayer (i) had an Illinois net loss or an
Illinois net loss deduction under Section 207 of the
Illinois Income Tax Act for the taxable year in which
the Credit is awarded, (ii) employed a minimum of

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1,000 full-time employees in this State during the
taxable year in which the Credit is awarded, and (iii)
has applied for an Agreement within 365 days after
December 14, 2009 (the effective date of Public Act
96-834);
(C) the Taxpayer (i) had an Illinois net operating
loss carryforward under Section 207 of the Illinois
Income Tax Act in a taxable year ending during
calendar year 2008, (ii) has applied for an Agreement
within 150 days after the effective date of this
amendatory Act of the 96th General Assembly, (iii)
creates at least 400 new jobs in Illinois, (iv)
retains at least 2,000 jobs in Illinois that would
have been at risk of relocation out of Illinois over a
10-year period, and (v) makes a capital investment of
at least $75,000,000;
(D) the Taxpayer (i) had an Illinois net operating
loss carryforward under Section 207 of the Illinois
Income Tax Act in a taxable year ending during
calendar year 2009, (ii) has applied for an Agreement
within 150 days after the effective date of this
amendatory Act of the 96th General Assembly, (iii)
creates at least 150 new jobs, (iv) retains at least
1,000 jobs in Illinois that would have been at risk of
relocation out of Illinois over a 10-year period, and
(v) makes a capital investment of at least

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$57,000,000; or
(E) the Taxpayer (i) employed at least 2,500
full-time employees in the State during the year in
which the Credit is awarded, (ii) commits to make at
least $500,000,000 in combined capital improvements
and project costs under the Agreement, (iii) applies
for an Agreement between January 1, 2011 and June 30,
2011, (iv) executes an Agreement for the Credit during
calendar year 2011, and (v) was incorporated no more
than 5 years before the filing of an application for an
Agreement.
(1.5) The election under this subsection (f) may also
be made by a Taxpayer for any Credit awarded pursuant to an
agreement that was executed between January 1, 2011 and
June 30, 2011, if the Taxpayer (i) is primarily engaged in
the manufacture of inner tubes or tires, or both, from
natural and synthetic rubber, (ii) employs a minimum of
2,400 full-time employees in Illinois at the time of
application, (iii) creates at least 350 full-time jobs and
retains at least 250 full-time jobs in Illinois that would
have been at risk of being created or retained outside of
Illinois, and (iv) makes a capital investment of at least
$200,000,000 at the project location.
(1.6) The election under this subsection (f) may also
be made by a Taxpayer for any Credit awarded pursuant to an
agreement that was executed within 150 days after the

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effective date of this amendatory Act of the 97th General
Assembly, if the Taxpayer (i) is primarily engaged in the
operation of a discount department store, (ii) maintains
its corporate headquarters in Illinois, (iii) employs a
minimum of 4,250 full-time employees at its corporate
headquarters in Illinois at the time of application, (iv)
retains at least 4,250 full-time jobs in Illinois that
would have been at risk of being relocated outside of
Illinois, (v) had a minimum of $40,000,000,000 in total
revenue in 2010, and (vi) makes a capital investment of at
least $300,000,000 at the project location.
(1.7) Notwithstanding any other provision of law, the
election under this subsection (f) may also be made by a
Taxpayer for any Credit awarded pursuant to an agreement
that was executed or applied for on or after July 1, 2011
and on or before March 31, 2012, if the Taxpayer is
primarily engaged in the manufacture of original and
aftermarket filtration parts and products for automobiles,
motor vehicles, light duty motor vehicles, light trucks
and utility vehicles, and heavy duty trucks, (ii) employs
a minimum of 1,000 full-time employees in Illinois at the
time of application, (iii) creates at least 250 full-time
jobs in Illinois, (iv) relocates its corporate
headquarters to Illinois from another state, and (v) makes
a capital investment of at least $4,000,000 at the project
location.

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(1.8) Notwithstanding any other provision of law, the
election under this subsection (f) may also be made by a
startup taxpayer for any Credit awarded pursuant to an
Agreement that was executed on or after the effective date
of this amendatory Act of the 102nd General Assembly. Any
such election under this paragraph (1.8) shall be
effective unless and until such startup taxpayer has any
Illinois income tax liability. This election under this
paragraph (1.8) shall automatically terminate when the
startup taxpayer has any Illinois income tax liability at
the end of any taxable year during the term of the
Agreement. Thereafter, the startup taxpayer may receive a
Credit, taking into account any benefits previously
enjoyed or received by way of the election under this
paragraph (1.8), so long as the startup taxpayer remains
in compliance with the terms and conditions of the
Agreement.
(1.9) Notwithstanding any other provision of law, the
election under this subsection (f) may also be made by an
applicant qualified under paragraph (1.7) of subsection
(b) of Section 5-20 for any Credit awarded pursuant to an
Agreement that was executed on or after the effective date
of this amendatory Act of the 103rd General Assembly. Any
such election under this paragraph (1.9) shall be
effective unless and until such taxpayer has any Illinois
income tax liability. This election under this paragraph

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(1.9) shall automatically terminate when the taxpayer has
any Illinois income tax liability at the end of any
taxable year during the term of the Agreement. Thereafter,
the startup taxpayer may receive a Credit, taking into
account any benefits previously enjoyed or received by way
of the election under this paragraph (1.9), so long as the
startup taxpayer remains in compliance with the terms and
conditions of the Agreement.
(2) An election under this subsection shall allow the
credit to be taken against payments otherwise due under
Section 704A of the Illinois Income Tax Act during the
first calendar quarter beginning after the end of the
taxable quarter in which the credit is awarded under this
Act.
(3) The election shall be made in the form and manner
required by the Illinois Department of Revenue and, once
made, shall be irrevocable.
(4) If a Taxpayer who meets the requirements of
subparagraph (A) of paragraph (1) of this subsection (f)
elects to claim the Credit against its withholdings as
provided in this subsection (f), then, on and after the
date of the election, the terms of the Agreement between
the Taxpayer and the Department may not be further amended
during the term of the Agreement.
(g) A pass-through entity that has been awarded a credit
under this Act, its shareholders, or its partners may treat

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some or all of the credit awarded pursuant to this Act as a tax
payment for purposes of the Illinois Income Tax Act. The term
"tax payment" means a payment as described in Article 6 or
Article 8 of the Illinois Income Tax Act or a composite payment
made by a pass-through entity on behalf of any of its
shareholders or partners to satisfy such shareholders' or
partners' taxes imposed pursuant to subsections (a) and (b) of
Section 201 of the Illinois Income Tax Act. In no event shall
the amount of the award credited pursuant to this Act exceed
the Illinois income tax liability of the pass-through entity
or its shareholders or partners for the taxable year.
(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)
(35 ILCS 10/5-20)
Sec. 5-20. Application for a project to create and retain
new jobs.
(a) Any Taxpayer proposing a project located or planned to
be located in Illinois may request consideration for
designation of its project, by formal written letter of
request or by formal application to the Department, in which
the Applicant states its intent to make at least a specified
level of investment and intends to hire or retain a specified
number of full-time employees at a designated location in
Illinois. As circumstances require, the Department may require
a formal application from an Applicant and a formal letter of
request for assistance.

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(b) In order to qualify for Credits under this Act, an
Applicant's project must:
(1) if the Applicant has more than 100 employees,
involve an investment of at least $2,500,000 in capital
improvements to be placed in service within the State as a
direct result of the project; if the Applicant has 100 or
fewer employees, then there is no capital investment
requirement;
(1.5) if the Applicant has more than 100 employees,
employ a number of new employees in the State equal to the
lesser of (A) 10% of the number of full-time employees
employed by the applicant world-wide on the date the
application is filed with the Department or (B) 50 New
Employees; and, if the Applicant has 100 or fewer
employees, employ a number of new employees in the State
equal to the lesser of (A) 5% of the number of full-time
employees employed by the applicant world-wide on the date
the application is filed with the Department or (B) 50 New
Employees;
(1.6) if the Applicant is a startup taxpayer, the
employees employed by Related Members shall not be
attributed to the Applicant for purposes of determining
the capital investment or job creation requirements under
this subsection (b);
(1.7) if the agreement is entered into on or after the
effective date of this amendatory Act of the 103rd General

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Assembly and the Applicant's project:
(A) makes an investment of at least $50,000,000 in
capital improvements at the project site;
(B) is placed in service after approval of the
application; and
(C) creates jobs for at least 100 new full-time
employees.
(2) (blank);
(3) (blank); and
(4) include an annual sexual harassment policy report
as provided under Section 5-58.
(c) After receipt of an application, the Department may
enter into an Agreement with the Applicant if the application
is accepted in accordance with Section 5-25.
(Source: P.A. 101-81, eff. 7-12-19; 102-700, eff. 4-19-22.)
(35 ILCS 10/5-35)
Sec. 5-35. Relocation of jobs in Illinois. A taxpayer is
not entitled to claim the credit provided by this Act with
respect to any jobs that the taxpayer relocates from one site
in Illinois unless the taxpayer has agreed to hire the minimum
number of new employees and the Department has determined that
the expansion cannot reasonably be accommodated within the
municipality in which the business is located to another site
in Illinois. A taxpayer with respect to a qualifying project
certified under the Corporate Headquarters Relocation Act,

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however, is not subject to the requirements of this Section
but is nevertheless considered an applicant for purposes of
this Act. Moreover, any full-time employee of an eligible
business relocated to Illinois in connection with that
qualifying project is deemed to be a new employee for purposes
of this Act. Determinations under this Section shall be made
by the Department.
(Source: P.A. 91-476, eff. 8-11-99; 92-207, eff. 8-1-01.)
(35 ILCS 10/5-45)
Sec. 5-45. Amount and duration of the credit.
(a) The Department shall determine the amount and duration
of the credit awarded under this Act. The duration of the
credit may not exceed 10 taxable years for projects qualified
under paragraph (1), (1.5), or (1.6) of subsection (b) of
Section 5-20 or 15 taxable years for projects qualified under
paragraph (1.7) of subsection (b) of Section 5-20. The credit
may be stated as a percentage of the Incremental Income Tax
attributable to the applicant's project and may include a
fixed dollar limitation.
(b) Notwithstanding subsection (a), and except as the
credit may be applied in a carryover year pursuant to Section
211(4) of the Illinois Income Tax Act, the credit may be
applied against the State income tax liability in more than 10
taxable years but not in more than 15 taxable years for an
eligible business that (i) qualifies under this Act and the

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Corporate Headquarters Relocation Act and has in fact
undertaken a qualifying project within the time frame
specified by the Department of Commerce and Economic
Opportunity under that Act, and (ii) applies against its State
income tax liability, during the entire 15-year period, no
more than 60% of the maximum credit per year that would
otherwise be available under this Act.
(c) Nothing in this Section shall prevent the Department,
in consultation with the Department of Revenue, from adopting
rules to extend the sunset of any earned, existing, and unused
tax credit or credits a taxpayer may be in possession of, as
provided for in Section 605-1070 of the Department of Commerce
and Economic Opportunity Law of the Civil Administrative Code
of Illinois, notwithstanding the carry-forward provisions
pursuant to paragraph (4) of Section 211 of the Illinois
Income Tax Act.
(Source: P.A. 102-16, eff. 6-17-21; 102-813, eff. 5-13-22.)
(35 ILCS 10/5-56)
Sec. 5-56. Annual report. Certified payroll. Annually,
until construction is completed, a company seeking New
Construction EDGE Credits shall submit a report that, at a
minimum, describes the projected project scope, timeline, and
anticipated budget. Once the project has commenced, the annual
report shall include actual data for the prior year as well as
projections for each additional year through completion of the

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project. The Department shall issue detailed reporting
guidelines prescribing the requirements of construction
related reports. In order to receive credit for construction
expenses, the company must provide the Department of Commerce
and Economic Opportunity with evidence that a certified
third-party executed an Agreed-Upon Procedure (AUP) verifying
the construction expenses or accept the standard construction
wage expense estimated by the Department of Commerce and
Economic Opportunity.
Upon review of the final project scope, timeline, budget,
and AUP, the Department shall issue a tax credit certificate
reflecting a percentage of the total construction job wages
paid throughout the completion of the project.
Each contractor and subcontractor that is engaged in and is
executing a New Construction EDGE Project for a Taxpayer,
pursuant to a New Construction EDGE Agreement shall:
(1) make and keep, for a period of 5 years from the
date of the last payment made on or after June 5, 2019 (the
effective date of Public Act 101-9) on a contract or
subcontract for a New Construction EDGE Project pursuant
to a New Construction EDGE Agreement, records of all
laborers and other workers employed by the contractor or
subcontractor on the project; the records shall include:
(A) the worker's name;
(B) the worker's address;
(C) the worker's telephone number, if available;

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(D) the worker's social security number;
(E) the worker's classification or
classifications;
(F) the worker's gross and net wages paid in each
pay period;
(G) the worker's number of hours worked each day;
(H) the worker's starting and ending times of work
each day;
(I) the worker's hourly wage rate; and
(J) the worker's hourly overtime wage rate; and
(2) no later than the 15th day of each calendar month,
provide a certified payroll for the immediately preceding
month to the taxpayer in charge of the project; within 5
business days after receiving the certified payroll, the
taxpayer shall file the certified payroll with the
Department of Labor and the Department of Commerce and
Economic Opportunity; a certified payroll must be filed
for only those calendar months during which construction
on a New Construction EDGE Project has occurred; the
certified payroll shall consist of a complete copy of the
records identified in paragraph (1), but may exclude the
starting and ending times of work each day; the certified
payroll shall be accompanied by a statement signed by the
contractor or subcontractor or an officer, employee, or
agent of the contractor or subcontractor which avers that:
(A) he or she has examined the certified payroll

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records required to be submitted by the Act and such
records are true and accurate; and
(B) the contractor or subcontractor is aware that
filing a certified payroll that he or she knows to be
false is a Class A misdemeanor.
A general contractor is not prohibited from relying on a
certified payroll of a lower-tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification.
Any contractor or subcontractor subject to this Section,
and any officer, employee, or agent of such contractor or
subcontractor whose duty as an officer, employee, or agent it
is to file a certified payroll under this Section, who
willfully fails to file such a certified payroll on or before
the date such certified payroll is required to be filed and any
person who willfully files a false certified payroll that is
false as to any material fact is in violation of this Act and
guilty of a Class A misdemeanor.
The taxpayer in charge of the project shall keep the
records submitted in accordance with this Section on or after
June 5, 2019 (the effective date of Public Act 101-9) for a
period of 5 years from the date of the last payment for work on
a contract or subcontract for the project.
The records submitted in accordance with this Section
shall be considered public records, except an employee's
address, telephone number, and social security number, and

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made available in accordance with the Freedom of Information
Act. The Department of Labor shall accept any reasonable
submissions by the contractor that meet the requirements of
this Section and shall share the information with the
Department in order to comply with the awarding of New
Construction EDGE Credits. A contractor, subcontractor, or
public body may retain records required under this Section in
paper or electronic format.
Upon 7 business days' notice, the taxpayer contractor and
each subcontractor shall make available for inspection and
copying at a location within this State during reasonable
hours, the records identified in paragraph (1) of this Section
to the taxpayer in charge of the project, its officers and
agents, the Director of Labor and his or her deputies and
agents, and to federal, State, or local law enforcement
agencies and prosecutors.
(Source: P.A. 101-9, eff. 6-5-19; 102-558, eff. 8-20-21.)
Section 30. The Manufacturing Illinois Chips for Real
Opportunity (MICRO) Act is amended by changing Sections
110-10, 110-20, 110-35, 110-65, and 110-95 as follows:
(35 ILCS 45/110-10)
Sec. 110-10. Definitions. As used in this Act:
"Agreement" means the agreement between a taxpayer and the
Department under the provisions of this Act.

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"Applicant" means a taxpayer that: (i) operates a business
in Illinois as a semiconductor manufacturer, a microchip
manufacturer, or a manufacturer of semiconductor or microchip
component parts, or focuses on research and development and
innovation in the space of semiconductor manufacturing,
microchip manufacturing, and the manufacturing of
semiconductor or microchip component parts; or (ii) is
planning to locate a business within the State of Illinois as a
semiconductor manufacturer, a microchip manufacturer, or a
manufacturer of semiconductor or microchip component parts, or
focuses on research and development and innovation in the
space of semiconductor manufacturing, microchip manufacturing,
and the manufacturing of semiconductor or microchip component
parts. "Applicant" does not include a taxpayer who closes or
substantially reduces by more than 50% operations at one
location in the State and relocates substantially the same
operation to another location in the State. This does not
prohibit a taxpayer from expanding its operations at another
location in the State. This also does not prohibit a taxpayer
from moving its operations from one location in the State to
another location in the State for the purpose of expanding the
operation, provided that the Department determines that
expansion cannot reasonably be accommodated within the
municipality or county in which the business is located, or,
in the case of a business located in an incorporated area of
the county, within the county in which the business is

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located, after conferring with the chief elected official of
the municipality or county and taking into consideration any
evidence offered by the municipality or county regarding the
ability to accommodate expansion within the municipality or
county.
"Capital improvements" means the purchase, renovation,
rehabilitation, or construction of permanent tangible land,
buildings, structures, equipment, and furnishings in an
approved project sited in Illinois and expenditures for goods
or services that are normally capitalized, including
organizational costs and research and development costs
incurred in Illinois. For land, buildings, structures, and
equipment that are leased, the lease must equal or exceed the
term of the agreement, and the cost of the property shall be
determined from the present value, using the corporate
interest rate prevailing at the time of the application, of
the lease payments.
"Credit" or "MICRO credit" means a credit agreed to
between the Department and applicant under this Act.
"Department" means the Department of Commerce and Economic
Opportunity.
"Director" means the Director of Commerce and Economic
Opportunity.
"Energy Transition Area" means a county with less than
100,000 people or a municipality that contains one or more of
the following:

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(1) a fossil fuel plant that was retired from service
or has significant reduced service within 6 years before
the time of the application or will be retired or have
service significantly reduced within 6 years following the
time of the application; or
(2) a coal mine that was closed or had operations
significantly reduced within 6 years before the time of
the application or is anticipated to be closed or have
operations significantly reduced within 6 years following
the time of the application.
"Full-time employee" means an individual who is employed
for consideration for at least 35 hours each week or who
renders any other standard of service generally accepted by
industry custom or practice as full-time employment. An
individual for whom a W-2 is issued by a Professional Employer
Organization (PEO) is a full-time employee if employed in the
service of the applicant for consideration for at least 35
hours each week.
"Incremental income tax" means the total amount withheld
during the taxable year from the compensation of new employees
and, if applicable, retained employees under Article 7 of the
Illinois Income Tax Act arising from employment at a project
that is the subject of an agreement.
"Institution of higher education" or "institution" means
any accredited public or private university, college,
community college, business, technical, or vocational school,

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

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"Noncompliance date" means, in the case of a taxpayer that
is not complying with the requirements of the agreement or the
provisions of this Act, the day following the last date upon
which the taxpayer was in compliance with the requirements of
the agreement and the provisions of this Act, as determined by
the Director.
"Pass-through entity" means an entity that is exempt from
the tax under subsection (b) or (c) of Section 205 of the
Illinois Income Tax Act.
"Placed in service" means the state or condition of
readiness, availability for a specifically assigned function,
and the facility is constructed and ready to conduct its
facility operations to manufacture goods.
"Professional employer organization" (PEO) means an
employee leasing company, as defined in Section 206.1 of the
Illinois Unemployment Insurance Act.
"Program" means the Manufacturing Illinois Chips for Real
Opportunity (MICRO) program established in this Act.
"Project" means a for-profit economic development activity
for the manufacture of semiconductors and microchips.
"Related member" means a person that, with respect to the
taxpayer during any portion of the taxable year, is any one of
the following:
(1) An individual stockholder, if the stockholder and
the members of the stockholder's family (as defined in
Section 318 of the Internal Revenue Code) own directly,

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indirectly, beneficially, or constructively, in the
aggregate, at least 50% of the value of the taxpayer's
outstanding stock.
(2) A partnership, estate, trust and any partner or
beneficiary, if the partnership, estate, or trust, and its
partners or beneficiaries own directly, indirectly,
beneficially, or constructively, in the aggregate, at
least 50% of the profits, capital, stock, or value of the
taxpayer.
(3) A corporation, and any party related to the
corporation in a manner that would require an attribution
of stock from the corporation under the attribution rules
of Section 318 of the Internal Revenue Code, if the
taxpayer owns directly, indirectly, beneficially, or
constructively at least 50% of the value of the
corporation's outstanding stock.
(4) A corporation and any party related to that
corporation in a manner that would require an attribution
of stock from the corporation to the party or from the
party to the corporation under the attribution rules of
Section 318 of the Internal Revenue Code, if the
corporation and all such related parties own in the
aggregate at least 50% of the profits, capital, stock, or
value of the taxpayer.
(5) A person to or from whom there is an attribution of
stock ownership in accordance with Section 1563(e) of the

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Internal Revenue Code, except, for purposes of determining
whether a person is a related member under this paragraph,
20% shall be substituted for 5% wherever 5% appears in
Section 1563(e) of the Internal Revenue Code.
"Research and development" means work directed toward the
innovation, introduction, and improvement of products and
processes in the space of semiconductor manufacturing,
microchip manufacturing, and the manufacturing of
semiconductor or microchip component parts.
"Retained employee" means a full-time employee employed by
the taxpayer prior to the term of the agreement who continues
to be employed during the term of the agreement whose job
duties are directly and substantially related to the project.
For purposes of this definition, "directly and substantially
related to the project" means at least two-thirds of the
employee's job duties must be directly related to the project
and the employee must devote at least two-thirds of his or her
time to the project. The term "retained employee" does not
include any individual who has a direct or an indirect
ownership interest of at least 5% in the profits, equity,
capital, or value of the taxpayer or a child, grandchild,
parent, or spouse, other than a spouse who is legally
separated from the individual, of any individual who has a
direct or indirect ownership of at least 5% in the profits,
equity, capital, or value of the taxpayer.
"Semiconductor" means any class of crystalline solids

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

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prior written approval for the travel by the Director based on
a showing of substantial need or other proof the training is
not reasonably available within the United States), wages and
fringe benefits of employees during periods of training, or
administrative cost related to full-time employees of the
taxpayer.
"Underserved area" means any geographic area areas as
defined in Section 5-5 of the Economic Development for a
Growing Economy Tax Credit Act.
(Source: P.A. 102-700, eff. 4-19-22.)
(35 ILCS 45/110-20)
Sec. 110-20. Manufacturing Illinois Chips for Real
Opportunity (MICRO) Program; project applications.
(a) The Manufacturing Illinois Chips for Real Opportunity
(MICRO) Program is hereby established and shall be
administered by the Department. The Program will provide
financial incentives to eligible semiconductor manufacturers,
and microchip manufacturers, and companies focusing on
research and development and innovation in the space of
semiconductor manufacturing, microchip manufacturing, and the
manufacturing of semiconductor or microchip component parts.
(b) Any taxpayer planning a project to be located in
Illinois may request consideration for designation of its
project as a MICRO project, by formal written letter of
request or by formal application to the Department, in which

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the applicant states its intent to make at least a specified
level of investment and intends to hire a specified number of
full-time employees at a designated location in Illinois. As
circumstances require, the Department shall require a formal
application from an applicant and a formal letter of request
for assistance.
(c) In order to qualify for credits under the program, an
applicant must:
(1) for a semiconductor manufacturer or microchip
manufacturer:
(A) make an investment of at least $1,500,000,000
in capital improvements at the project site;
(B) to be placed in service within the State
within a 60-month period after approval of the
application; and
(C) create at least 500 new full-time employee
jobs; or
(2) for a semiconductor or microchip component parts
manufacturer:
(A) make an investment of at least $300,000,000 in
capital improvements at the project site;
(B) manufacture one or more parts that are
primarily used for the manufacture of semiconductors
or microchips;
(C) to be placed in service within the State
within a 60-month period after approval of the

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application; and
(D) create at least 150 new full-time employee
jobs; or
(3) for a semiconductor manufacturer or microchip
manufacturer or a semiconductor or microchip component
parts manufacturer that does not quality under paragraph
(2) above:
(A) make an investment of at least $2,500,000
$20,000,000 in capital improvements at the project
site;
(B) to be placed in service within the State
within a 48-month period after approval of the
application; and
(C) create at least 50 new full-time employee jobs
or new full-time employees equivalent to 10% of the
number of full-time employees employed by the
applicant world-wide on the date the application is
filed with the Department; or
(4) for a semiconductor manufacturer or microchip
manufacturer or a semiconductor or microchip component
parts manufacturer with existing operations in Illinois
that intends to convert or expand, in whole or in part, the
existing facility from traditional manufacturing to
semiconductor manufacturing or microchip manufacturing or
semiconductor or microchip component parts manufacturing,
or a company focusing on research and development and

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innovation in the space of semiconductor manufacturing,
microchip manufacturing, and the manufacturing of
semiconductor or microchip component parts:
(A) make an investment of at least $100,000,000 in
capital improvements at the project site;
(B) to be placed in service within the State
within a 60-month period after approval of the
application; and
(C) create the lesser of 75 new full-time employee
jobs or new full-time employee jobs equivalent to 10%
of the Statewide baseline applicable to the taxpayer
and any related member at the time of application.
(d) For any applicant creating the full-time employee jobs
noted in subsection (c), those jobs must have a total
compensation equal to or greater than 120% of the average wage
paid to full-time employees in the county where the project is
located, as determined by the Department.
(e) Each applicant must outline its hiring plan and
commitment to recruit and hire full-time employee positions at
the project site. The hiring plan may include a partnership
with an institution of higher education to provide
internships, including, but not limited to, internships
supported by the Clean Jobs Workforce Network Program, or
full-time permanent employment for students at the project
site. Additionally, the applicant may create or utilize
participants from apprenticeship programs that are approved by

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

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the Economic Development for a Growing Economy Tax Credit Act
to the extent that the taxpayer's application otherwise
satisfies the terms and conditions of this Act and is approved
by the Department. An applicant with an existing agreement
under the Economic Development for a Growing Economy Tax
Credit Act may submit an application for an agreement under
this Act after it terminates any existing agreement under the
Economic Development for a Growing Economy Tax Credit Act with
respect to the same address or location.
(Source: P.A. 102-700, eff. 4-19-22; 102-1125, eff. 2-3-23.)
(35 ILCS 45/110-35)
Sec. 110-35. Relocation of jobs in Illinois. A taxpayer is
not entitled to claim a credit provided by this Act with
respect to any jobs that the taxpayer relocates from one site
in Illinois to another site in Illinois unless the taxpayer
has agreed to hire the minimum number of new employees and the
Department has determined that the expansion cannot reasonably
be accommodated within the municipality in which the business
is located. Any full-time employee relocated to Illinois in
connection with a qualifying project is deemed to be a new
employee for purposes of this Act. Determinations under this
Section shall be made by the Department.
(Source: P.A. 102-700, eff. 4-19-22.)
(35 ILCS 45/110-65)

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Sec. 110-65. Certified payroll.
(a) Annually, until construction is completed, a company
seeking MICRO Construction Job Credits shall submit a report
that, at a minimum, describes the projected project scope,
timeline, and anticipated budget. Once the project has
commenced, the annual report shall include actual data for the
prior year as well as projections for each additional year
through completion of the project. The Department shall issue
detailed reporting guidelines prescribing the requirements of
construction-related reports. Each contractor and
subcontractor that is engaged in construction work on project
facilities for a taxpayer who seeks to apply for a MICRO
Construction Jobs Credit shall:
(1) make and keep, for a period of 5 years from the
date of the last payment made on a contract or subcontract
for construction of facilities for a project pursuant to
an agreement, records of all laborers and other workers
employed by the contractor or subcontractor on the
project; the records shall include:
(A) the worker's name;
(B) the worker's address;
(C) the worker's telephone number, if available;
(D) the worker's social security number;
(E) the worker's classification or
classifications;
(F) the worker's gross and net wages paid in each

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pay period;
(G) the worker's number of hours worked in each
day;
(H) the worker's starting and ending times of work
each day;
(I) the worker's hourly wage rate; and
(J) the worker's hourly overtime wage rate; and
(2) no later than the 15th day of each calendar month,
provide a certified payroll for the immediately preceding
month to the taxpayer in charge of the project; within 5
business days after receiving the certified payroll, the
taxpayer shall file the certified payroll with the
Department of Labor and the Department; a certified
payroll must be filed for only those calendar months
during which construction on the project facilities has
occurred; the certified payroll shall consist of a
complete copy of the records identified in paragraph (1),
but may exclude the starting and ending times of work each
day; the certified payroll shall be accompanied by a
statement signed by the contractor or subcontractor or an
officer, employee, or agent of the contractor or
subcontractor which avers that:
(A) he or she has examined the certified payroll
records required to be submitted by the Act and such
records are true and accurate; and
(B) the contractor or subcontractor is aware that

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filing a certified payroll that he or she knows to be
false is a Class A misdemeanor.
A general contractor is not prohibited from relying on a
certified payroll of a lower-tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification.
(b) In order to receive credit for construction expenses,
the company must provide the Department of Commerce and
Economic Opportunity with evidence that a certified third
party executed an Agreed-Upon Procedure (AUP) verifying the
construction expenses or accept the standard construction wage
expense estimated by the Department of Commerce and Economic
Opportunity. Any contractor or subcontractor subject to this
Section, and any officer, employee, or agent of such
contractor or subcontractor whose duty as an officer,
employee, or agent it is to file a certified payroll under this
Section, who willfully fails to file such a certified payroll,
on or before the date such certified payroll is required to be
filed and any person who willfully files a false certified
payroll as to any material fact is in violation of this Act and
guilty of a Class A misdemeanor and may be enforced by the
Illinois Department of Labor or the Department. The Attorney
General shall represented the Illinois Department of Labor or
the Department in the proceeding.
(c) Upon review of the final project scope, timeline,
budget, and AUP, the Department shall issue a tax credit

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

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Department of Labor and his/her deputies and agents, and to
federal, State, or local law enforcement agencies and
prosecutors.
(Source: P.A. 102-700, eff. 4-19-22.)
(35 ILCS 45/110-95)
Sec. 110-95. Utility tax exemptions for MICRO projects.
The Department may certify a taxpayer with a credit for a
project that meets the qualifications under paragraphs (1),
(2), and (4) of subsection (c) of Section 110-20, subject to an
agreement under this Act, for an exemption from the tax
imposed at the project site by Section 2-4 of the Electricity
Excise Tax Law. To receive such certification, the taxpayer
must be registered to self-assess that tax. The taxpayer is
also exempt from any additional charges added to the
taxpayer's utility bills at the project site as a pass-on of
State utility taxes under Section 9-222 of the Public
Utilities Act. The taxpayer must meet any other the criteria
for certification set by the Department.
The Department shall determine the period during which the
exemption from the Electricity Excise Tax Law and the charges
imposed under Section 9-222 of the Public Utilities Act are in
effect, which shall not exceed 30 10 years or the life of the
agreement, whichever is lesser, from the date of the
taxpayer's initial receipt of certification from the
Department under this Section.

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The Department is authorized to adopt rules to carry out
the provisions of this Section, including procedures to apply
for the exemptions; to define the amounts and types of
eligible investments that an applicant must make in order to
receive electricity excise tax exemptions or exemptions from
the additional charges imposed under Section 9-222 and the
Public Utilities Act; to approve such electricity excise tax
exemptions for applicants whose investments are not yet placed
in service; and to require that an applicant granted an
electricity excise tax exemption or an exemption from
additional charges under Section 9-222 of the Public Utilities
Act repay the exempted amount if the applicant fails to comply
with the terms and conditions of the agreement.
Upon certification by the Department under this Section,
the Department shall notify the Department of Revenue of the
certification. The Department of Revenue shall notify the
public utilities of the exempt status of any taxpayer
certified for exemption under this Act from the electricity
excise tax or pass-on charges. The exemption status shall take
effect within 3 months after certification of the taxpayer and
notice to the Department of Revenue by the Department.
(Source: P.A. 102-700, eff. 4-19-22.)
Section 35. The Use Tax Act is amended by changing Section
3-5 as follows:

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

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purchases unless it has an active identification number issued
by the Department.
(4) Except as otherwise provided in this Act, personal
property purchased by a governmental body, by a corporation,
society, association, foundation, or institution organized and
operated exclusively for charitable, religious, or educational
purposes, or by a not-for-profit corporation, society,
association, foundation, institution, or organization that has
no compensated officers or employees and that is organized and
operated primarily for the recreation of persons 55 years of
age or older. A limited liability company may qualify for the
exemption under this paragraph only if the limited liability
company is organized and operated exclusively for educational
purposes. On and after July 1, 1987, however, no entity
otherwise eligible for this exemption shall make tax-free
purchases unless it has an active exemption identification
number issued by the Department.
(5) Until July 1, 2003, a passenger car that is a
replacement vehicle to the extent that the purchase price of
the car is subject to the Replacement Vehicle Tax.
(6) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new
and used, and including that manufactured on special order,
certified by the purchaser to be used primarily for graphic
arts production, and including machinery and equipment

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

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

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

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

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

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the generation or treatment of natural or artificial gas for
wholesale or retail sale that is delivered to customers
through pipes, pipelines, or mains; or (iii) the treatment of
water for wholesale or retail sale that is delivered to
customers through pipes, pipelines, or mains. The provisions
of Public Act 98-583 are declaratory of existing law as to the
meaning and scope of this exemption. Beginning on July 1,
2017, the exemption provided by this paragraph (18) includes,
but is not limited to, graphic arts machinery and equipment,
as defined in paragraph (6) of this Section.
(19) Personal property delivered to a purchaser or
purchaser's donee inside Illinois when the purchase order for
that personal property was received by a florist located
outside Illinois who has a florist located inside Illinois
deliver the personal property.
(20) Semen used for artificial insemination of livestock
for direct agricultural production.
(21) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (21) is exempt from the
provisions of Section 3-90, and the exemption provided for
under this item (21) applies for all periods beginning May 30,
1995, but no claim for credit or refund is allowed on or after

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

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

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

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

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

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

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

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

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

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operations in accordance with Part 145 of the Federal Aviation
Regulations; and (B) persons who engage in the modification,
replacement, repair, and maintenance of aircraft engines or
power plants without regard to whether or not those persons
meet the qualifications of item (A).
The exemption does not include aircraft operated by a
commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part
129 of the Federal Aviation Regulations. The changes made to
this paragraph (35) by Public Act 98-534 are declarative of
existing law. It is the intent of the General Assembly that the
exemption under this paragraph (35) applies continuously from
January 1, 2010 through December 31, 2024; however, no claim
for credit or refund is allowed for taxes paid as a result of
the disallowance of this exemption on or after January 1, 2015
and prior to February 5, 2020 (the effective date of Public Act
101-629).
(36) Tangible personal property purchased by a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt

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instruments issued by the public-facilities corporation in
connection with the development of the municipal convention
hall. This exemption includes existing public-facilities
corporations as provided in Section 11-65-25 of the Illinois
Municipal Code. This paragraph is exempt from the provisions
of Section 3-90.
(37) Beginning January 1, 2017 and through December 31,
2026, menstrual pads, tampons, and menstrual cups.
(38) Merchandise that is subject to the Rental Purchase
Agreement Occupation and Use Tax. The purchaser must certify
that the item is purchased to be rented subject to a
rental-purchase rental purchase agreement, as defined in the
Rental-Purchase Rental Purchase Agreement Act, and provide
proof of registration under the Rental Purchase Agreement
Occupation and Use Tax Act. This paragraph is exempt from the
provisions of Section 3-90.
(39) Tangible personal property purchased by a purchaser
who is exempt from the tax imposed by this Act by operation of
federal law. This paragraph is exempt from the provisions of
Section 3-90.
(40) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor

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of the owner, operator, or tenant. Data centers that would
have qualified for a certificate of exemption prior to January
1, 2020 had Public Act 101-31 been in effect may apply for and
obtain an exemption for subsequent purchases of computer
equipment or enabling software purchased or leased to upgrade,
supplement, or replace computer equipment or enabling software
purchased or leased in the original investment that would have
qualified.
The Department of Commerce and Economic Opportunity shall
grant a certificate of exemption under this item (40) to
qualified data centers as defined by Section 605-1025 of the
Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (40):
"Data center" means a building or a series of
buildings rehabilitated or constructed to house working
servers in one physical location or multiple sites within
the State of Illinois.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks; cabinets;
telecommunications cabling infrastructure; raised floor
systems; peripheral components or systems; software;

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mechanical, electrical, or plumbing systems; battery
systems; cooling systems and towers; temperature control
systems; other cabling; and other data center
infrastructure equipment and systems necessary to operate
qualified tangible personal property, including fixtures;
and component parts of any of the foregoing, including
installation, maintenance, repair, refurbishment, and
replacement of qualified tangible personal property to
generate, transform, transmit, distribute, or manage
electricity necessary to operate qualified tangible
personal property; and all other tangible personal
property that is essential to the operations of a computer
data center. The term "qualified tangible personal
property" also includes building materials physically
incorporated into in to the qualifying data center. To
document the exemption allowed under this Section, the
retailer must obtain from the purchaser a copy of the
certificate of eligibility issued by the Department of
Commerce and Economic Opportunity.
This item (40) is exempt from the provisions of Section
3-90.
(41) Beginning July 1, 2022, breast pumps, breast pump
collection and storage supplies, and breast pump kits. This
item (41) is exempt from the provisions of Section 3-90. As
used in this item (41):
"Breast pump" means an electrically controlled or

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manually controlled pump device designed or marketed to be
used to express milk from a human breast during lactation,
including the pump device and any battery, AC adapter, or
other power supply unit that is used to power the pump
device and is packaged and sold with the pump device at the
time of sale.
"Breast pump collection and storage supplies" means
items of tangible personal property designed or marketed
to be used in conjunction with a breast pump to collect
milk expressed from a human breast and to store collected
milk until it is ready for consumption.
"Breast pump collection and storage supplies"
includes, but is not limited to: breast shields and breast
shield connectors; breast pump tubes and tubing adapters;
breast pump valves and membranes; backflow protectors and
backflow protector adaptors; bottles and bottle caps
specific to the operation of the breast pump; and breast
milk storage bags.
"Breast pump collection and storage supplies" does not
include: (1) bottles and bottle caps not specific to the
operation of the breast pump; (2) breast pump travel bags
and other similar carrying accessories, including ice
packs, labels, and other similar products; (3) breast pump
cleaning supplies; (4) nursing bras, bra pads, breast
shells, and other similar products; and (5) creams,
ointments, and other similar products that relieve

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breastfeeding-related symptoms or conditions of the
breasts or nipples, unless sold as part of a breast pump
kit that is pre-packaged by the breast pump manufacturer
or distributor.
"Breast pump kit" means a kit that: (1) contains no
more than a breast pump, breast pump collection and
storage supplies, a rechargeable battery for operating the
breast pump, a breastmilk cooler, bottle stands, ice
packs, and a breast pump carrying case; and (2) is
pre-packaged as a breast pump kit by the breast pump
manufacturer or distributor.
(42) Tangible personal property sold by or on behalf of
the State Treasurer pursuant to the Revised Uniform Unclaimed
Property Act. This item (42) is exempt from the provisions of
Section 3-90.
(43) Beginning on January 1, 2024, tangible personal
property purchased by an active duty member of the armed
forces of the United States who presents valid military
identification and purchases the property using a form of
payment where the federal government is the payor. The member
of the armed forces must complete, at the point of sale, a form
prescribed by the Department of Revenue documenting that the
transaction is eligible for the exemption under this
paragraph. Retailers must keep the form as documentation of
the exemption in their records for a period of not less than 6
years. "Armed forces of the United States" means the United

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

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personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
(2) Personal property purchased by a non-profit Illinois
county fair association for use in conducting, operating, or
promoting the county fair.
(3) Personal property purchased by a not-for-profit arts
or cultural organization that establishes, by proof required
by the Department by rule, that it has received an exemption
under Section 501(c)(3) of the Internal Revenue Code and that
is organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35), however, an entity
otherwise eligible for this exemption shall not make tax-free
purchases unless it has an active identification number issued
by the Department.
(4) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and

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

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

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

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

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16, 2013 (the effective date of Public Act 98-456).
(13) Semen used for artificial insemination of livestock
for direct agricultural production.
(14) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (14) is exempt from the
provisions of Section 3-75, and the exemption provided for
under this item (14) applies for all periods beginning May 30,
1995, but no claim for credit or refund is allowed on or after
January 1, 2008 (the effective date of Public Act 95-88) for
such taxes paid during the period beginning May 30, 2000 and
ending on January 1, 2008 (the effective date of Public Act
95-88).
(15) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the equipment is leased
in a manner that does not qualify for this exemption or is used

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

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

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

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

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

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

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

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

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commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part
129 of the Federal Aviation Regulations. The changes made to
this paragraph (27) by Public Act 98-534 are declarative of
existing law. It is the intent of the General Assembly that the
exemption under this paragraph (27) applies continuously from
January 1, 2010 through December 31, 2024; however, no claim
for credit or refund is allowed for taxes paid as a result of
the disallowance of this exemption on or after January 1, 2015
and prior to February 5, 2020 (the effective date of Public Act
101-629).
(28) Tangible personal property purchased by a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt
instruments issued by the public-facilities corporation in
connection with the development of the municipal convention
hall. This exemption includes existing public-facilities
corporations as provided in Section 11-65-25 of the Illinois
Municipal Code. This paragraph is exempt from the provisions
of Section 3-75.

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(29) Beginning January 1, 2017 and through December 31,
2026, menstrual pads, tampons, and menstrual cups.
(30) Tangible personal property transferred to a purchaser
who is exempt from the tax imposed by this Act by operation of
federal law. This paragraph is exempt from the provisions of
Section 3-75.
(31) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor
of the owner, operator, or tenant. Data centers that would
have qualified for a certificate of exemption prior to January
1, 2020 had Public Act 101-31 been in effect, may apply for and
obtain an exemption for subsequent purchases of computer
equipment or enabling software purchased or leased to upgrade,
supplement, or replace computer equipment or enabling software
purchased or leased in the original investment that would have
qualified.
The Department of Commerce and Economic Opportunity shall
grant a certificate of exemption under this item (31) to
qualified data centers as defined by Section 605-1025 of the
Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (31):

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"Data center" means a building or a series of
buildings rehabilitated or constructed to house working
servers in one physical location or multiple sites within
the State of Illinois.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks; cabinets;
telecommunications cabling infrastructure; raised floor
systems; peripheral components or systems; software;
mechanical, electrical, or plumbing systems; battery
systems; cooling systems and towers; temperature control
systems; other cabling; and other data center
infrastructure equipment and systems necessary to operate
qualified tangible personal property, including fixtures;
and component parts of any of the foregoing, including
installation, maintenance, repair, refurbishment, and
replacement of qualified tangible personal property to
generate, transform, transmit, distribute, or manage
electricity necessary to operate qualified tangible
personal property; and all other tangible personal
property that is essential to the operations of a computer
data center. The term "qualified tangible personal
property" also includes building materials physically

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incorporated into in to the qualifying data center. To
document the exemption allowed under this Section, the
retailer must obtain from the purchaser a copy of the
certificate of eligibility issued by the Department of
Commerce and Economic Opportunity.
This item (31) is exempt from the provisions of Section
3-75.
(32) Beginning July 1, 2022, breast pumps, breast pump
collection and storage supplies, and breast pump kits. This
item (32) is exempt from the provisions of Section 3-75. As
used in this item (32):
"Breast pump" means an electrically controlled or
manually controlled pump device designed or marketed to be
used to express milk from a human breast during lactation,
including the pump device and any battery, AC adapter, or
other power supply unit that is used to power the pump
device and is packaged and sold with the pump device at the
time of sale.
"Breast pump collection and storage supplies" means
items of tangible personal property designed or marketed
to be used in conjunction with a breast pump to collect
milk expressed from a human breast and to store collected
milk until it is ready for consumption.
"Breast pump collection and storage supplies"
includes, but is not limited to: breast shields and breast
shield connectors; breast pump tubes and tubing adapters;

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breast pump valves and membranes; backflow protectors and
backflow protector adaptors; bottles and bottle caps
specific to the operation of the breast pump; and breast
milk storage bags.
"Breast pump collection and storage supplies" does not
include: (1) bottles and bottle caps not specific to the
operation of the breast pump; (2) breast pump travel bags
and other similar carrying accessories, including ice
packs, labels, and other similar products; (3) breast pump
cleaning supplies; (4) nursing bras, bra pads, breast
shells, and other similar products; and (5) creams,
ointments, and other similar products that relieve
breastfeeding-related symptoms or conditions of the
breasts or nipples, unless sold as part of a breast pump
kit that is pre-packaged by the breast pump manufacturer
or distributor.
"Breast pump kit" means a kit that: (1) contains no
more than a breast pump, breast pump collection and
storage supplies, a rechargeable battery for operating the
breast pump, a breastmilk cooler, bottle stands, ice
packs, and a breast pump carrying case; and (2) is
pre-packaged as a breast pump kit by the breast pump
manufacturer or distributor.
(33) Tangible personal property sold by or on behalf of
the State Treasurer pursuant to the Revised Uniform Unclaimed
Property Act. This item (33) is exempt from the provisions of

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

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

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organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35), however, an entity
otherwise eligible for this exemption shall not make tax-free
purchases unless it has an active identification number issued
by the Department.
(4) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new
and used, and including that manufactured on special order or
purchased for lease, certified by the purchaser to be used
primarily for graphic arts production. Equipment includes
chemicals or chemicals acting as catalysts but only if the
chemicals or chemicals acting as catalysts effect a direct and
immediate change upon a graphic arts product. Beginning on
July 1, 2017, graphic arts machinery and equipment is included
in the manufacturing and assembling machinery and equipment
exemption under Section 2 of this Act.
(6) Personal property sold by a teacher-sponsored student
organization affiliated with an elementary or secondary school
located in Illinois.
(7) Farm machinery and equipment, both new and used,

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

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

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

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

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(15) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (15) is exempt from the
provisions of Section 3-55, and the exemption provided for
under this item (15) applies for all periods beginning May 30,
1995, but no claim for credit or refund is allowed on or after
January 1, 2008 (the effective date of Public Act 95-88) for
such taxes paid during the period beginning May 30, 2000 and
ending on January 1, 2008 (the effective date of Public Act
95-88).
(16) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor
who leases the equipment, under a lease of one year or longer
executed or in effect at the time of the purchase, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act.
(17) Personal property sold to a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time of the purchase, to a governmental body that
has been issued an active tax exemption identification number
by the Department under Section 1g of the Retailers'

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Occupation Tax Act.
(18) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated
for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(19) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in
the performance of infrastructure repairs in this State,
including, but not limited to, municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois when such repairs are initiated on facilities located
in the declared disaster area within 6 months after the
disaster.
(20) Beginning July 1, 1999, game or game birds sold at a
"game breeding and hunting preserve area" as that term is used

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in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-55.
(21) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the
Department to be organized and operated exclusively for
educational purposes. For purposes of this exemption, "a
corporation, limited liability company, society, association,
foundation, or institution organized and operated exclusively
for educational purposes" means all tax-supported public
schools, private schools that offer systematic instruction in
useful branches of learning by methods common to public
schools and that compare favorably in their scope and
intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes
organized and operated exclusively to provide a course of
study of not less than 6 weeks duration and designed to prepare
individuals to follow a trade or to pursue a manual,
technical, mechanical, industrial, business, or commercial
occupation.
(22) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school

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

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identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. This paragraph is exempt
from the provisions of Section 3-55.
(25) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), personal property sold to a lessor who
leases the property, under a lease of one year or longer
executed or in effect at the time of the purchase, to a
governmental body that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. This paragraph is exempt
from the provisions of Section 3-55.
(26) Beginning on January 1, 2002 and through June 30,
2016, tangible personal property purchased from an Illinois
retailer by a taxpayer engaged in centralized purchasing
activities in Illinois who will, upon receipt of the property
in Illinois, temporarily store the property in Illinois (i)
for the purpose of subsequently transporting it outside this
State for use or consumption thereafter solely outside this
State or (ii) for the purpose of being processed, fabricated,
or manufactured into, attached to, or incorporated into other
tangible personal property to be transported outside this
State and thereafter used or consumed solely outside this
State. The Director of Revenue shall, pursuant to rules
adopted in accordance with the Illinois Administrative
Procedure Act, issue a permit to any taxpayer in good standing
with the Department who is eligible for the exemption under

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

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

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repair station by the Federal Aviation Administration, (ii)
have a Class IV Rating, and (iii) conduct operations in
accordance with Part 145 of the Federal Aviation Regulations.
The exemption does not include aircraft operated by a
commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part
129 of the Federal Aviation Regulations. From January 1, 2024
through December 31, 2029, this exemption applies only to the
use of qualifying tangible personal property by: (A) persons
who modify, refurbish, complete, repair, replace, or maintain
aircraft and who (i) hold an Air Agency Certificate and are
empowered to operate an approved repair station by the Federal
Aviation Administration, (ii) have a Class IV Rating, and
(iii) conduct operations in accordance with Part 145 of the
Federal Aviation Regulations; and (B) persons who engage in
the modification, replacement, repair, and maintenance of
aircraft engines or power plants without regard to whether or
not those persons meet the qualifications of item (A).
The changes made to this paragraph (29) by Public Act
98-534 are declarative of existing law. It is the intent of the
General Assembly that the exemption under this paragraph (29)
applies continuously from January 1, 2010 through December 31,
2024; however, no claim for credit or refund is allowed for
taxes paid as a result of the disallowance of this exemption on
or after January 1, 2015 and prior to February 5, 2020 (the
effective date of Public Act 101-629).

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(30) Beginning January 1, 2017 and through December 31,
2026, menstrual pads, tampons, and menstrual cups.
(31) Tangible personal property transferred to a purchaser
who is exempt from tax by operation of federal law. This
paragraph is exempt from the provisions of Section 3-55.
(32) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor
of the owner, operator, or tenant. Data centers that would
have qualified for a certificate of exemption prior to January
1, 2020 had Public Act 101-31 been in effect, may apply for and
obtain an exemption for subsequent purchases of computer
equipment or enabling software purchased or leased to upgrade,
supplement, or replace computer equipment or enabling software
purchased or leased in the original investment that would have
qualified.
The Department of Commerce and Economic Opportunity shall
grant a certificate of exemption under this item (32) to
qualified data centers as defined by Section 605-1025 of the
Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (32):
"Data center" means a building or a series of

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buildings rehabilitated or constructed to house working
servers in one physical location or multiple sites within
the State of Illinois.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks; cabinets;
telecommunications cabling infrastructure; raised floor
systems; peripheral components or systems; software;
mechanical, electrical, or plumbing systems; battery
systems; cooling systems and towers; temperature control
systems; other cabling; and other data center
infrastructure equipment and systems necessary to operate
qualified tangible personal property, including fixtures;
and component parts of any of the foregoing, including
installation, maintenance, repair, refurbishment, and
replacement of qualified tangible personal property to
generate, transform, transmit, distribute, or manage
electricity necessary to operate qualified tangible
personal property; and all other tangible personal
property that is essential to the operations of a computer
data center. The term "qualified tangible personal
property" also includes building materials physically
incorporated into in to the qualifying data center. To

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document the exemption allowed under this Section, the
retailer must obtain from the purchaser a copy of the
certificate of eligibility issued by the Department of
Commerce and Economic Opportunity.
This item (32) is exempt from the provisions of Section
3-55.
(33) Beginning July 1, 2022, breast pumps, breast pump
collection and storage supplies, and breast pump kits. This
item (33) is exempt from the provisions of Section 3-55. As
used in this item (33):
"Breast pump" means an electrically controlled or
manually controlled pump device designed or marketed to be
used to express milk from a human breast during lactation,
including the pump device and any battery, AC adapter, or
other power supply unit that is used to power the pump
device and is packaged and sold with the pump device at the
time of sale.
"Breast pump collection and storage supplies" means
items of tangible personal property designed or marketed
to be used in conjunction with a breast pump to collect
milk expressed from a human breast and to store collected
milk until it is ready for consumption.
"Breast pump collection and storage supplies"
includes, but is not limited to: breast shields and breast
shield connectors; breast pump tubes and tubing adapters;
breast pump valves and membranes; backflow protectors and

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backflow protector adaptors; bottles and bottle caps
specific to the operation of the breast pump; and breast
milk storage bags.
"Breast pump collection and storage supplies" does not
include: (1) bottles and bottle caps not specific to the
operation of the breast pump; (2) breast pump travel bags
and other similar carrying accessories, including ice
packs, labels, and other similar products; (3) breast pump
cleaning supplies; (4) nursing bras, bra pads, breast
shells, and other similar products; and (5) creams,
ointments, and other similar products that relieve
breastfeeding-related symptoms or conditions of the
breasts or nipples, unless sold as part of a breast pump
kit that is pre-packaged by the breast pump manufacturer
or distributor.
"Breast pump kit" means a kit that: (1) contains no
more than a breast pump, breast pump collection and
storage supplies, a rechargeable battery for operating the
breast pump, a breastmilk cooler, bottle stands, ice
packs, and a breast pump carrying case; and (2) is
pre-packaged as a breast pump kit by the breast pump
manufacturer or distributor.
(34) Tangible personal property sold by or on behalf of
the State Treasurer pursuant to the Revised Uniform Unclaimed
Property Act. This item (34) is exempt from the provisions of
Section 3-55.

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

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Section 50. The Retailers' Occupation Tax Act is amended
by changing Section 2-5 as follows:
(35 ILCS 120/2-5)
Sec. 2-5. Exemptions. Gross receipts from proceeds from
the sale of the following tangible personal property are
exempt from the tax imposed by this Act:
(1) Farm chemicals.
(2) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by
the purchaser to be used primarily for production
agriculture or State or federal agricultural programs,
including individual replacement parts for the machinery
and equipment, including machinery and equipment purchased
for lease, and including implements of husbandry defined
in Section 1-130 of the Illinois Vehicle Code, farm
machinery and agricultural chemical and fertilizer
spreaders, and nurse wagons required to be registered
under Section 3-809 of the Illinois Vehicle Code, but
excluding other motor vehicles required to be registered
under the Illinois Vehicle Code. Horticultural polyhouses
or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery
and equipment under this item (2). Agricultural chemical
tender tanks and dry boxes shall include units sold
separately from a motor vehicle required to be licensed

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and units sold mounted on a motor vehicle required to be
licensed, if the selling price of the tender is separately
stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but
not limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders. Precision farming equipment
includes, but is not limited to, soil testing sensors,
computers, monitors, software, global positioning and
mapping systems, and other such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in
the computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not
limited to, the collection, monitoring, and correlation of
animal and crop data for the purpose of formulating animal
diets and agricultural chemicals.
Beginning on January 1, 2024, farm machinery and
equipment also includes electrical power generation
equipment used primarily for production agriculture.
This item (2) is exempt from the provisions of Section
2-70.
(3) Until July 1, 2003, distillation machinery and
equipment, sold as a unit or kit, assembled or installed
by the retailer, certified by the user to be used only for

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the production of ethyl alcohol that will be used for
consumption as motor fuel or as a component of motor fuel
for the personal use of the user, and not subject to sale
or resale.
(4) Until July 1, 2003 and beginning again September
1, 2004 through August 30, 2014, graphic arts machinery
and equipment, including repair and replacement parts,
both new and used, and including that manufactured on
special order or purchased for lease, certified by the
purchaser to be used primarily for graphic arts
production. Equipment includes chemicals or chemicals
acting as catalysts but only if the chemicals or chemicals
acting as catalysts effect a direct and immediate change
upon a graphic arts product. Beginning on July 1, 2017,
graphic arts machinery and equipment is included in the
manufacturing and assembling machinery and equipment
exemption under paragraph (14).
(5) A motor vehicle that is used for automobile
renting, as defined in the Automobile Renting Occupation
and Use Tax Act. This paragraph is exempt from the
provisions of Section 2-70.
(6) Personal property sold by a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(7) Until July 1, 2003, proceeds of that portion of
the selling price of a passenger car the sale of which is

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subject to the Replacement Vehicle Tax.
(8) Personal property sold to an Illinois county fair
association for use in conducting, operating, or promoting
the county fair.
(9) Personal property sold to a not-for-profit arts or
cultural organization that establishes, by proof required
by the Department by rule, that it has received an
exemption under Section 501(c)(3) of the Internal Revenue
Code and that is organized and operated primarily for the
presentation or support of arts or cultural programming,
activities, or services. These organizations include, but
are not limited to, music and dramatic arts organizations
such as symphony orchestras and theatrical groups, arts
and cultural service organizations, local arts councils,
visual arts organizations, and media arts organizations.
On and after July 1, 2001 (the effective date of Public Act
92-35), however, an entity otherwise eligible for this
exemption shall not make tax-free purchases unless it has
an active identification number issued by the Department.
(10) Personal property sold by a corporation, society,
association, foundation, institution, or organization,
other than a limited liability company, that is organized
and operated as a not-for-profit service enterprise for
the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for
the purpose of resale by the enterprise.

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(11) Except as otherwise provided in this Section,
personal property sold to a governmental body, to a
corporation, society, association, foundation, or
institution organized and operated exclusively for
charitable, religious, or educational purposes, or to a
not-for-profit corporation, society, association,
foundation, institution, or organization that has no
compensated officers or employees and that is organized
and operated primarily for the recreation of persons 55
years of age or older. A limited liability company may
qualify for the exemption under this paragraph only if the
limited liability company is organized and operated
exclusively for educational purposes. On and after July 1,
1987, however, no entity otherwise eligible for this
exemption shall make tax-free purchases unless it has an
active identification number issued by the Department.
(12) (Blank).
(12-5) On and after July 1, 2003 and through June 30,
2004, motor vehicles of the second division with a gross
vehicle weight in excess of 8,000 pounds that are subject
to the commercial distribution fee imposed under Section
3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
2004 and through June 30, 2005, the use in this State of
motor vehicles of the second division: (i) with a gross
vehicle weight rating in excess of 8,000 pounds; (ii) that
are subject to the commercial distribution fee imposed

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under Section 3-815.1 of the Illinois Vehicle Code; and
(iii) that are primarily used for commercial purposes.
Through June 30, 2005, this exemption applies to repair
and replacement parts added after the initial purchase of
such a motor vehicle if that motor vehicle is used in a
manner that would qualify for the rolling stock exemption
otherwise provided for in this Act. For purposes of this
paragraph, "used for commercial purposes" means the
transportation of persons or property in furtherance of
any commercial or industrial enterprise whether for-hire
or not.
(13) Proceeds from sales to owners, lessors, or
shippers of tangible personal property that is utilized by
interstate carriers for hire for use as rolling stock
moving in interstate commerce and equipment operated by a
telecommunications provider, licensed as a common carrier
by the Federal Communications Commission, which is
permanently installed in or affixed to aircraft moving in
interstate commerce.
(14) Machinery and equipment that will be used by the
purchaser, or a lessee of the purchaser, primarily in the
process of manufacturing or assembling tangible personal
property for wholesale or retail sale or lease, whether
the sale or lease is made directly by the manufacturer or
by some other person, whether the materials used in the
process are owned by the manufacturer or some other

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person, or whether the sale or lease is made apart from or
as an incident to the seller's engaging in the service
occupation of producing machines, tools, dies, jigs,
patterns, gauges, or other similar items of no commercial
value on special order for a particular purchaser. The
exemption provided by this paragraph (14) does not include
machinery and equipment used in (i) the generation of
electricity for wholesale or retail sale; (ii) the
generation or treatment of natural or artificial gas for
wholesale or retail sale that is delivered to customers
through pipes, pipelines, or mains; or (iii) the treatment
of water for wholesale or retail sale that is delivered to
customers through pipes, pipelines, or mains. The
provisions of Public Act 98-583 are declaratory of
existing law as to the meaning and scope of this
exemption. Beginning on July 1, 2017, the exemption
provided by this paragraph (14) includes, but is not
limited to, graphic arts machinery and equipment, as
defined in paragraph (4) of this Section.
(15) Proceeds of mandatory service charges separately
stated on customers' bills for purchase and consumption of
food and beverages, to the extent that the proceeds of the
service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate
directly in preparing, serving, hosting or cleaning up the
food or beverage function with respect to which the

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service charge is imposed.
(16) Tangible personal property sold to a purchaser if
the purchaser is exempt from use tax by operation of
federal law. This paragraph is exempt from the provisions
of Section 2-70.
(17) Tangible personal property sold to a common
carrier by rail or motor that receives the physical
possession of the property in Illinois and that transports
the property, or shares with another common carrier in the
transportation of the property, out of Illinois on a
standard uniform bill of lading showing the seller of the
property as the shipper or consignor of the property to a
destination outside Illinois, for use outside Illinois.
(18) Legal tender, currency, medallions, or gold or
silver coinage issued by the State of Illinois, the
government of the United States of America, or the
government of any foreign country, and bullion.
(19) Until July 1, 2003, oil field exploration,
drilling, and production equipment, including (i) rigs and
parts of rigs, rotary rigs, cable tool rigs, and workover
rigs, (ii) pipe and tubular goods, including casing and
drill strings, (iii) pumps and pump-jack units, (iv)
storage tanks and flow lines, (v) any individual
replacement part for oil field exploration, drilling, and
production equipment, and (vi) machinery and equipment
purchased for lease; but excluding motor vehicles required

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to be registered under the Illinois Vehicle Code.
(20) Photoprocessing machinery and equipment,
including repair and replacement parts, both new and used,
including that manufactured on special order, certified by
the purchaser to be used primarily for photoprocessing,
and including photoprocessing machinery and equipment
purchased for lease.
(21) Until July 1, 2028, coal and aggregate
exploration, mining, off-highway hauling, processing,
maintenance, and reclamation equipment, including
replacement parts and equipment, and including equipment
purchased for lease, but excluding motor vehicles required
to be registered under the Illinois Vehicle Code. The
changes made to this Section by Public Act 97-767 apply on
and after July 1, 2003, but no claim for credit or refund
is allowed on or after August 16, 2013 (the effective date
of Public Act 98-456) for such taxes paid during the
period beginning July 1, 2003 and ending on August 16,
2013 (the effective date of Public Act 98-456).
(22) Until June 30, 2013, fuel and petroleum products
sold to or used by an air carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a
flight destined for or returning from a location or
locations outside the United States without regard to
previous or subsequent domestic stopovers.

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Beginning July 1, 2013, fuel and petroleum products
sold to or used by an air carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a
flight that (i) is engaged in foreign trade or is engaged
in trade between the United States and any of its
possessions and (ii) transports at least one individual or
package for hire from the city of origination to the city
of final destination on the same aircraft, without regard
to a change in the flight number of that aircraft.
(23) A transaction in which the purchase order is
received by a florist who is located outside Illinois, but
who has a florist located in Illinois deliver the property
to the purchaser or the purchaser's donee in Illinois.
(24) Fuel consumed or used in the operation of ships,
barges, or vessels that are used primarily in or for the
transportation of property or the conveyance of persons
for hire on rivers bordering on this State if the fuel is
delivered by the seller to the purchaser's barge, ship, or
vessel while it is afloat upon that bordering river.
(25) Except as provided in item (25-5) of this
Section, a motor vehicle sold in this State to a
nonresident even though the motor vehicle is delivered to
the nonresident in this State, if the motor vehicle is not
to be titled in this State, and if a drive-away permit is
issued to the motor vehicle as provided in Section 3-603

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of the Illinois Vehicle Code or if the nonresident
purchaser has vehicle registration plates to transfer to
the motor vehicle upon returning to his or her home state.
The issuance of the drive-away permit or having the
out-of-state registration plates to be transferred is
prima facie evidence that the motor vehicle will not be
titled in this State.
(25-5) The exemption under item (25) does not apply if
the state in which the motor vehicle will be titled does
not allow a reciprocal exemption for a motor vehicle sold
and delivered in that state to an Illinois resident but
titled in Illinois. The tax collected under this Act on
the sale of a motor vehicle in this State to a resident of
another state that does not allow a reciprocal exemption
shall be imposed at a rate equal to the state's rate of tax
on taxable property in the state in which the purchaser is
a resident, except that the tax shall not exceed the tax
that would otherwise be imposed under this Act. At the
time of the sale, the purchaser shall execute a statement,
signed under penalty of perjury, of his or her intent to
title the vehicle in the state in which the purchaser is a
resident within 30 days after the sale and of the fact of
the payment to the State of Illinois of tax in an amount
equivalent to the state's rate of tax on taxable property
in his or her state of residence and shall submit the
statement to the appropriate tax collection agency in his

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or her state of residence. In addition, the retailer must
retain a signed copy of the statement in his or her
records. Nothing in this item shall be construed to
require the removal of the vehicle from this state
following the filing of an intent to title the vehicle in
the purchaser's state of residence if the purchaser titles
the vehicle in his or her state of residence within 30 days
after the date of sale. The tax collected under this Act in
accordance with this item (25-5) shall be proportionately
distributed as if the tax were collected at the 6.25%
general rate imposed under this Act.
(25-7) Beginning on July 1, 2007, no tax is imposed
under this Act on the sale of an aircraft, as defined in
Section 3 of the Illinois Aeronautics Act, if all of the
following conditions are met:
(1) the aircraft leaves this State within 15 days
after the later of either the issuance of the final
billing for the sale of the aircraft, or the
authorized approval for return to service, completion
of the maintenance record entry, and completion of the
test flight and ground test for inspection, as
required by 14 CFR 91.407;
(2) the aircraft is not based or registered in
this State after the sale of the aircraft; and
(3) the seller retains in his or her books and
records and provides to the Department a signed and

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dated certification from the purchaser, on a form
prescribed by the Department, certifying that the
requirements of this item (25-7) are met. The
certificate must also include the name and address of
the purchaser, the address of the location where the
aircraft is to be titled or registered, the address of
the primary physical location of the aircraft, and
other information that the Department may reasonably
require.
For purposes of this item (25-7):
"Based in this State" means hangared, stored, or
otherwise used, excluding post-sale customizations as
defined in this Section, for 10 or more days in each
12-month period immediately following the date of the sale
of the aircraft.
"Registered in this State" means an aircraft
registered with the Department of Transportation,
Aeronautics Division, or titled or registered with the
Federal Aviation Administration to an address located in
this State.
This paragraph (25-7) is exempt from the provisions of
Section 2-70.
(26) Semen used for artificial insemination of
livestock for direct agricultural production.
(27) Horses, or interests in horses, registered with
and meeting the requirements of any of the Arabian Horse

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Club Registry of America, Appaloosa Horse Club, American
Quarter Horse Association, United States Trotting
Association, or Jockey Club, as appropriate, used for
purposes of breeding or racing for prizes. This item (27)
is exempt from the provisions of Section 2-70, and the
exemption provided for under this item (27) applies for
all periods beginning May 30, 1995, but no claim for
credit or refund is allowed on or after January 1, 2008
(the effective date of Public Act 95-88) for such taxes
paid during the period beginning May 30, 2000 and ending
on January 1, 2008 (the effective date of Public Act
95-88).
(28) Computers and communications equipment utilized
for any hospital purpose and equipment used in the
diagnosis, analysis, or treatment of hospital patients
sold to a lessor who leases the equipment, under a lease of
one year or longer executed or in effect at the time of the
purchase, to a hospital that has been issued an active tax
exemption identification number by the Department under
Section 1g of this Act.
(29) Personal property sold to a lessor who leases the
property, under a lease of one year or longer executed or
in effect at the time of the purchase, to a governmental
body that has been issued an active tax exemption
identification number by the Department under Section 1g
of this Act.

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(30) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on
or before December 31, 2004, personal property that is
donated for disaster relief to be used in a State or
federally declared disaster area in Illinois or bordering
Illinois by a manufacturer or retailer that is registered
in this State to a corporation, society, association,
foundation, or institution that has been issued a sales
tax exemption identification number by the Department that
assists victims of the disaster who reside within the
declared disaster area.
(31) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on
or before December 31, 2004, personal property that is
used in the performance of infrastructure repairs in this
State, including, but not limited to, municipal roads and
streets, access roads, bridges, sidewalks, waste disposal
systems, water and sewer line extensions, water
distribution and purification facilities, storm water
drainage and retention facilities, and sewage treatment
facilities, resulting from a State or federally declared
disaster in Illinois or bordering Illinois when such
repairs are initiated on facilities located in the
declared disaster area within 6 months after the disaster.
(32) Beginning July 1, 1999, game or game birds sold
at a "game breeding and hunting preserve area" as that

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term is used in the Wildlife Code. This paragraph is
exempt from the provisions of Section 2-70.
(33) A motor vehicle, as that term is defined in
Section 1-146 of the Illinois Vehicle Code, that is
donated to a corporation, limited liability company,
society, association, foundation, or institution that is
determined by the Department to be organized and operated
exclusively for educational purposes. For purposes of this
exemption, "a corporation, limited liability company,
society, association, foundation, or institution organized
and operated exclusively for educational purposes" means
all tax-supported public schools, private schools that
offer systematic instruction in useful branches of
learning by methods common to public schools and that
compare favorably in their scope and intensity with the
course of study presented in tax-supported schools, and
vocational or technical schools or institutes organized
and operated exclusively to provide a course of study of
not less than 6 weeks duration and designed to prepare
individuals to follow a trade or to pursue a manual,
technical, mechanical, industrial, business, or commercial
occupation.
(34) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for
the benefit of a public or private elementary or secondary
school, a group of those schools, or one or more school

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districts if the events are sponsored by an entity
recognized by the school district that consists primarily
of volunteers and includes parents and teachers of the
school children. This paragraph does not apply to
fundraising events (i) for the benefit of private home
instruction or (ii) for which the fundraising entity
purchases the personal property sold at the events from
another individual or entity that sold the property for
the purpose of resale by the fundraising entity and that
profits from the sale to the fundraising entity. This
paragraph is exempt from the provisions of Section 2-70.
(35) Beginning January 1, 2000 and through December
31, 2001, new or used automatic vending machines that
prepare and serve hot food and beverages, including
coffee, soup, and other items, and replacement parts for
these machines. Beginning January 1, 2002 and through June
30, 2003, machines and parts for machines used in
commercial, coin-operated amusement and vending business
if a use or occupation tax is paid on the gross receipts
derived from the use of the commercial, coin-operated
amusement and vending machines. This paragraph is exempt
from the provisions of Section 2-70.
(35-5) Beginning August 23, 2001 and through June 30,
2016, food for human consumption that is to be consumed
off the premises where it is sold (other than alcoholic
beverages, soft drinks, and food that has been prepared

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for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, and
insulin, urine testing materials, syringes, and needles
used by diabetics, for human use, when purchased for use
by a person receiving medical assistance under Article V
of the Illinois Public Aid Code who resides in a licensed
long-term care facility, as defined in the Nursing Home
Care Act, or a licensed facility as defined in the ID/DD
Community Care Act, the MC/DD Act, or the Specialized
Mental Health Rehabilitation Act of 2013.
(36) Beginning August 2, 2001, computers and
communications equipment utilized for any hospital purpose
and equipment used in the diagnosis, analysis, or
treatment of hospital patients sold to a lessor who leases
the equipment, under a lease of one year or longer
executed or in effect at the time of the purchase, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g
of this Act. This paragraph is exempt from the provisions
of Section 2-70.
(37) Beginning August 2, 2001, personal property sold
to a lessor who leases the property, under a lease of one
year or longer executed or in effect at the time of the
purchase, to a governmental body that has been issued an
active tax exemption identification number by the
Department under Section 1g of this Act. This paragraph is

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exempt from the provisions of Section 2-70.
(38) Beginning on January 1, 2002 and through June 30,
2016, tangible personal property purchased from an
Illinois retailer by a taxpayer engaged in centralized
purchasing activities in Illinois who will, upon receipt
of the property in Illinois, temporarily store the
property in Illinois (i) for the purpose of subsequently
transporting it outside this State for use or consumption
thereafter solely outside this State or (ii) for the
purpose of being processed, fabricated, or manufactured
into, attached to, or incorporated into other tangible
personal property to be transported outside this State and
thereafter used or consumed solely outside this State. The
Director of Revenue shall, pursuant to rules adopted in
accordance with the Illinois Administrative Procedure Act,
issue a permit to any taxpayer in good standing with the
Department who is eligible for the exemption under this
paragraph (38). The permit issued under this paragraph
(38) shall authorize the holder, to the extent and in the
manner specified in the rules adopted under this Act, to
purchase tangible personal property from a retailer exempt
from the taxes imposed by this Act. Taxpayers shall
maintain all necessary books and records to substantiate
the use and consumption of all such tangible personal
property outside of the State of Illinois.
(39) Beginning January 1, 2008, tangible personal

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property used in the construction or maintenance of a
community water supply, as defined under Section 3.145 of
the Environmental Protection Act, that is operated by a
not-for-profit corporation that holds a valid water supply
permit issued under Title IV of the Environmental
Protection Act. This paragraph is exempt from the
provisions of Section 2-70.
(40) Beginning January 1, 2010 and continuing through
December 31, 2029, materials, parts, equipment,
components, and furnishings incorporated into or upon an
aircraft as part of the modification, refurbishment,
completion, replacement, repair, or maintenance of the
aircraft. This exemption includes consumable supplies used
in the modification, refurbishment, completion,
replacement, repair, and maintenance of aircraft. However,
until January 1, 2024, this exemption excludes any
materials, parts, equipment, components, and consumable
supplies used in the modification, replacement, repair,
and maintenance of aircraft engines or power plants,
whether such engines or power plants are installed or
uninstalled upon any such aircraft. "Consumable supplies"
include, but are not limited to, adhesive, tape,
sandpaper, general purpose lubricants, cleaning solution,
latex gloves, and protective films.
Beginning January 1, 2010 and continuing through
December 31, 2023, this exemption applies only to the sale

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of qualifying tangible personal property to persons who
modify, refurbish, complete, replace, or maintain an
aircraft and who (i) hold an Air Agency Certificate and
are empowered to operate an approved repair station by the
Federal Aviation Administration, (ii) have a Class IV
Rating, and (iii) conduct operations in accordance with
Part 145 of the Federal Aviation Regulations. The
exemption does not include aircraft operated by a
commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or
Part 129 of the Federal Aviation Regulations. From January
1, 2024 through December 31, 2029, this exemption applies
only to the use of qualifying tangible personal property
by: (A) persons who modify, refurbish, complete, repair,
replace, or maintain aircraft and who (i) hold an Air
Agency Certificate and are empowered to operate an
approved repair station by the Federal Aviation
Administration, (ii) have a Class IV Rating, and (iii)
conduct operations in accordance with Part 145 of the
Federal Aviation Regulations; and (B) persons who engage
in the modification, replacement, repair, and maintenance
of aircraft engines or power plants without regard to
whether or not those persons meet the qualifications of
item (A).
The changes made to this paragraph (40) by Public Act
98-534 are declarative of existing law. It is the intent

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of the General Assembly that the exemption under this
paragraph (40) applies continuously from January 1, 2010
through December 31, 2024; however, no claim for credit or
refund is allowed for taxes paid as a result of the
disallowance of this exemption on or after January 1, 2015
and prior to February 5, 2020 (the effective date of
Public Act 101-629).
(41) Tangible personal property sold to a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall,
but only if the legal title to the municipal convention
hall is transferred to the municipality without any
further consideration by or on behalf of the municipality
at the time of the completion of the municipal convention
hall or upon the retirement or redemption of any bonds or
other debt instruments issued by the public-facilities
corporation in connection with the development of the
municipal convention hall. This exemption includes
existing public-facilities corporations as provided in
Section 11-65-25 of the Illinois Municipal Code. This
paragraph is exempt from the provisions of Section 2-70.
(42) Beginning January 1, 2017 and through December
31, 2026, menstrual pads, tampons, and menstrual cups.
(43) Merchandise that is subject to the Rental
Purchase Agreement Occupation and Use Tax. The purchaser

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must certify that the item is purchased to be rented
subject to a rental-purchase rental purchase agreement, as
defined in the Rental-Purchase Rental Purchase Agreement
Act, and provide proof of registration under the Rental
Purchase Agreement Occupation and Use Tax Act. This
paragraph is exempt from the provisions of Section 2-70.
(44) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or
subcontractor of the owner, operator, or tenant. Data
centers that would have qualified for a certificate of
exemption prior to January 1, 2020 had Public Act 101-31
been in effect, may apply for and obtain an exemption for
subsequent purchases of computer equipment or enabling
software purchased or leased to upgrade, supplement, or
replace computer equipment or enabling software purchased
or leased in the original investment that would have
qualified.
The Department of Commerce and Economic Opportunity
shall grant a certificate of exemption under this item
(44) to qualified data centers as defined by Section
605-1025 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of

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Illinois.
For the purposes of this item (44):
"Data center" means a building or a series of
buildings rehabilitated or constructed to house
working servers in one physical location or multiple
sites within the State of Illinois.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks;
cabinets; telecommunications cabling infrastructure;
raised floor systems; peripheral components or
systems; software; mechanical, electrical, or plumbing
systems; battery systems; cooling systems and towers;
temperature control systems; other cabling; and other
data center infrastructure equipment and systems
necessary to operate qualified tangible personal
property, including fixtures; and component parts of
any of the foregoing, including installation,
maintenance, repair, refurbishment, and replacement of
qualified tangible personal property to generate,
transform, transmit, distribute, or manage electricity
necessary to operate qualified tangible personal
property; and all other tangible personal property

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that is essential to the operations of a computer data
center. The term "qualified tangible personal
property" also includes building materials physically
incorporated into the qualifying data center. To
document the exemption allowed under this Section, the
retailer must obtain from the purchaser a copy of the
certificate of eligibility issued by the Department of
Commerce and Economic Opportunity.
This item (44) is exempt from the provisions of
Section 2-70.
(45) Beginning January 1, 2020 and through December
31, 2020, sales of tangible personal property made by a
marketplace seller over a marketplace for which tax is due
under this Act but for which use tax has been collected and
remitted to the Department by a marketplace facilitator
under Section 2d of the Use Tax Act are exempt from tax
under this Act. A marketplace seller claiming this
exemption shall maintain books and records demonstrating
that the use tax on such sales has been collected and
remitted by a marketplace facilitator. Marketplace sellers
that have properly remitted tax under this Act on such
sales may file a claim for credit as provided in Section 6
of this Act. No claim is allowed, however, for such taxes
for which a credit or refund has been issued to the
marketplace facilitator under the Use Tax Act, or for
which the marketplace facilitator has filed a claim for

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credit or refund under the Use Tax Act.
(46) Beginning July 1, 2022, breast pumps, breast pump
collection and storage supplies, and breast pump kits.
This item (46) is exempt from the provisions of Section
2-70. As used in this item (46):
"Breast pump" means an electrically controlled or
manually controlled pump device designed or marketed to be
used to express milk from a human breast during lactation,
including the pump device and any battery, AC adapter, or
other power supply unit that is used to power the pump
device and is packaged and sold with the pump device at the
time of sale.
"Breast pump collection and storage supplies" means
items of tangible personal property designed or marketed
to be used in conjunction with a breast pump to collect
milk expressed from a human breast and to store collected
milk until it is ready for consumption.
"Breast pump collection and storage supplies"
includes, but is not limited to: breast shields and breast
shield connectors; breast pump tubes and tubing adapters;
breast pump valves and membranes; backflow protectors and
backflow protector adaptors; bottles and bottle caps
specific to the operation of the breast pump; and breast
milk storage bags.
"Breast pump collection and storage supplies" does not
include: (1) bottles and bottle caps not specific to the

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operation of the breast pump; (2) breast pump travel bags
and other similar carrying accessories, including ice
packs, labels, and other similar products; (3) breast pump
cleaning supplies; (4) nursing bras, bra pads, breast
shells, and other similar products; and (5) creams,
ointments, and other similar products that relieve
breastfeeding-related symptoms or conditions of the
breasts or nipples, unless sold as part of a breast pump
kit that is pre-packaged by the breast pump manufacturer
or distributor.
"Breast pump kit" means a kit that: (1) contains no
more than a breast pump, breast pump collection and
storage supplies, a rechargeable battery for operating the
breast pump, a breastmilk cooler, bottle stands, ice
packs, and a breast pump carrying case; and (2) is
pre-packaged as a breast pump kit by the breast pump
manufacturer or distributor.
(47) Tangible personal property sold by or on behalf
of the State Treasurer pursuant to the Revised Uniform
Unclaimed Property Act. This item (47) is exempt from the
provisions of Section 2-70.
(48) Beginning on January 1, 2024, tangible personal
property purchased by an active duty member of the armed
forces of the United States who presents valid military
identification and purchases the property using a form of
payment where the federal government is the payor. The

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member of the armed forces must complete, at the point of
sale, a form prescribed by the Department of Revenue
documenting that the transaction is eligible for the
exemption under this paragraph. Retailers must keep the
form as documentation of the exemption in their records
for a period of not less than 6 years. "Armed forces of the
United States" means the United States Army, Navy, Air
Force, Marine Corps, or Coast Guard. This paragraph is
exempt from the provisions of Section 2-70.
(49) Tangible personal property to be used or consumed
within a quantum computing campus enterprise zone
designated by the Department of Commerce and Economic
Opportunity under Section 605-1115 of the Department of
Commerce and Economic Opportunity Law of the Civil
Administrative Code of Illinois. This paragraph is exempt
from the provisions of Section 2-70.
(Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised
12-12-23.)
Section 55. The Property Tax Code is amended by changing
Section 18-184.15 as follows:

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(35 ILCS 200/18-184.15)
Sec. 18-184.15. REV Illinois project facilities for
electric vehicles, electric vehicle component parts, or
electric vehicle power supply equipment; abatement.
(a) Any taxing district, upon a majority vote of its
governing body, may, after determination of the assessed value
as set forth in this Code, order the clerk of the appropriate
municipality or county to abate, for a period not to exceed 30
consecutive years, any portion of real property taxes
otherwise levied or extended by the taxing district on a REV
Illinois Project facility owned by an electric vehicle
manufacturer, electric vehicle component parts manufacturer,
or an electric vehicle power supply manufacturer, or renewable
energy manufacturer that is subject to an agreement with the
Department of Commerce and Economic Opportunity under Section
45 of the Reimagining Energy and Vehicles in Illinois Act,
during the period of time such agreement is in effect as
specified by the Department of Commerce and Economic
Opportunity.
(b) Two or more taxing districts, upon a majority vote of
each of their respective governing bodies, may agree to abate,
for a period not to exceed 30 consecutive tax years, a portion
of the real property taxes otherwise levied or extended by
those taxing districts on a REV Illinois Project facility
owned by an electric vehicle manufacturer, electric vehicle

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component parts manufacturer, electric vehicle power supply
manufacturer, or a renewable energy manufacturer that is
subject to an agreement with the Department of Commerce and
Economic Opportunity under Section 45 of the Reimagining
Energy and Vehicles in Illinois Act. The agreement entered
into by the taxing districts under this subsection (b) shall
be filed with the county clerk who shall, for the period the
agreement remains in effect, abate the portion of the real
estate taxes levied or extended by those taxing districts as
directed in the agreement. Any such agreement entered into by
2 or more taxing districts before the effective date of this
amendatory Act of the 103rd General Assembly that is not
inconsistent with the provisions of this subsection (b) is
hereby declared valid and enforceable for the effective period
of that agreement.
(Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23.)
Section 60. The River Edge Redevelopment Zone Act is
amended by changing Sections 10-4, 10-5.3, 10-10.3, and
10-10.4 as follows:
(65 ILCS 115/10-4)
Sec. 10-4. Qualifications for River Edge Redevelopment
Zones. An area is qualified to become a zone if it:
(1) is a contiguous area adjacent to or surrounding a
river;

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(2) comprises a minimum of one half square mile and
not more than 12 square miles, exclusive of lakes and
waterways;
(3) satisfies any additional criteria established by
the Department consistent with the purposes of this Act;
(4) is entirely within a single municipality; and
(5) has at least 100 acres of environmentally
challenged land within 1500 yards of the riverfront.
Any River Edge Redevelopment Zone may have an overlapping
geographic area with an Enterprise Zone. If a taxpayer is
located in an area with an overlapping Enterprise Zone and
River Edge Redevelopment Zone, the taxpayer must elect, in the
form and manner required by the Department, from which program
it would like to request benefits.
(Source: P.A. 94-1021, eff. 7-12-06; 94-1022, eff. 7-12-06.)
(65 ILCS 115/10-5.3)
Sec. 10-5.3. Certification of River Edge Redevelopment
Zones.
(a) Approval of designated River Edge Redevelopment Zones
shall be made by the Department by certification of the
designating ordinance. The Department shall promptly issue a
certificate for each zone upon its approval. The certificate
shall be signed by the Director of the Department, shall make
specific reference to the designating ordinance, which shall
be attached thereto, and shall be filed in the office of the

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

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additional pilot River Edge Redevelopment Zone in the City of
Peoria.
On or after the effective date of this amendatory Act of
the 103rd General Assembly, the Department may certify 2
additional pilot River Edge Redevelopment Zones, including one
in the City of Joliet and one in the City of Kankakee.
On or after the effective date of this amendatory Act of
the 103rd General Assembly, the Department may certify 7
additional pilot River Edge Redevelopment Zones, including one
in the City of East Moline, one in the City of Moline, one in
the City of Ottawa, one in the City of LaSalle, one in the City
of Peru, one in the city of Rock Island, and one in the City of
Quincy.
After certifying the additional pilot River Edge
Redevelopment Zones authorized by the above paragraphs, the
Department may not certify any additional River Edge
Redevelopment Zones, but it may amend and rescind
certifications of existing River Edge Redevelopment Zones in
accordance with Section 10-5.4, except that no River Edge
Redevelopment Zone may be extended on or after the effective
date of this amendatory Act of the 97th General Assembly. Each
River Edge Redevelopment Zone in existence on the effective
date of this amendatory Act of the 97th General Assembly shall
continue until its scheduled termination under this Act,
unless the Zone is decertified sooner. At the time of its term
expiration each River Edge Redevelopment Zone will become an

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open enterprise zone, available for the previously designated
area or a different area to compete for designation as an
enterprise zone. No preference for designation as a Zone will
be given to the previously designated area.
(e) A municipality in which a River Edge Redevelopment
Zone has been certified must submit to the Department, within
60 days after the certification, a plan for encouraging the
participation by minority persons, women, persons with
disabilities, and veterans in the zone. The Department may
assist the municipality in developing and implementing the
plan. The terms "minority person", "woman", and "person with a
disability" have the meanings set forth under Section 2 of the
Business Enterprise for Minorities, Women, and Persons with
Disabilities Act. "Veteran" means an Illinois resident who is
a veteran as defined in subsection (h) of Section 1491 of Title
10 of the United States Code.
(Source: P.A. 103-9, eff. 6-7-23.)
(65 ILCS 115/10-10.3)
Sec. 10-10.3. River Edge Construction Jobs Credit.
(a) Beginning on January 1, 2021, a business entity may
receive a tax credit against the tax imposed under subsections
(a) and (b) of Section 201 in an amount equal to 50% (or 75% if
the project is located in an underserved area) of the amount of
the incremental income tax attributable to River Edge
construction jobs employees employed in the course of

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completing a River Edge construction jobs project. The credit
allowed under this Section shall apply only to taxpayers that
make a capital investment of at least $1,000,000 in a
qualified rehabilitation plan.
(b) A business entity seeking a credit under this Section
must submit an application to the Department describing the
nature and benefit of the River Edge construction jobs project
to the qualified rehabilitation project and the River Edge
Redevelopment Zone. The Department may adopt any necessary
rules in order to administer the provisions of this Section.
(c) Within 45 days after the receipt of an application,
the Department shall give notice to the applicant as to
whether the application has been approved or disapproved. If
the Department disapproves the application, it shall specify
the reasons for this decision and allow 60 days for the
applicant to amend and resubmit its application. The
Department shall provide assistance upon request to
applicants. Resubmitted applications shall receive the
Department's approval or disapproval within 30 days of
resubmission. Those resubmitted applications satisfying
initial Department objectives shall be approved unless
reasonable circumstances warrant disapproval.
(d) On an annual basis, the designated zone organization
shall furnish a statement to the Department on the
programmatic and financial status of any approved project and
an audited financial statement of the project.

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(e) The Department shall certify to the Department of
Revenue the identity of the taxpayers who are eligible for
River Edge construction jobs credits and the amounts of River
Edge construction jobs credits awarded in each taxable year.
(f) (Blank). The Department, in collaboration with the
Department of Labor, shall require certified payroll
reporting, pursuant to Section 10-10.4 of this Act, be
completed in order to verify the wages and any other necessary
information which the Department may deem necessary to
ascertain and certify the total number of River Edge
construction jobs employees and determine the amount of a
River Edge construction jobs credit.
(g) The total aggregate amount of credits awarded under
the Blue Collar Jobs Act (Article 20 of this amendatory Act of
the 101st General Assembly) shall not exceed $20,000,000 in
any State fiscal year.
(Source: P.A. 101-9, eff. 6-5-19.)
(65 ILCS 115/10-10.4)
Sec. 10-10.4. Certified payroll. Any taxpayer seeking Any
contractor and each subcontractor who is engaged in and is
executing a River Edge construction job tax credits must jobs
project for a taxpayer that is entitled to a credit pursuant to
Section 10-10.3 of this Act shall:
(1) annually, until construction is completed, submit
a report that, at a minimum, describes the projected

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project scope, timeline, and anticipated budget; once the
project has commenced, the annual report shall include
actual data for the prior year as well as projections for
each additional year through completion of the project;
the Department shall issue detailed reporting guidelines
prescribing the requirements of construction-related
reports; and
(2) provide the Department of Commerce and Economic
Opportunity with evidence that a certified third-party
executed an Agreed-Upon Procedure (AUP) verifying the
construction expenses or accept the standard construction
wage expense estimated by the Department of Commerce and
Economic Opportunity; upon review of the final project
scope, timeline, budget, and AUP, the Department shall
issue a tax credit certificate reflecting a percentage of
the total construction job wages paid throughout the
completion of the project.
(1) make and keep, for a period of 5 years from the
date of the last payment made on or after June 5, 2019 (the
effective date of Public Act 101-9) on a contract or
subcontract for a River Edge Construction Jobs Project in
a River Edge Redevelopment Zone records of all laborers
and other workers employed by them on the project; the
records shall include:
(A) the worker's name;
(B) the worker's address;

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(C) the worker's telephone number, if available;
(D) the worker's social security number;
(E) the worker's classification or
classifications;
(F) the worker's gross and net wages paid in each
pay period;
(G) the worker's number of hours worked each day;
(H) the worker's starting and ending times of work
each day;
(I) the worker's hourly wage rate; and
(J) the worker's hourly overtime wage rate; and
(2) no later than the 15th day of each calendar month,
provide a certified payroll for the immediately preceding
month to the taxpayer in charge of the project; within 5
business days after receiving the certified payroll, the
taxpayer shall file the certified payroll with the
Department of Labor and the Department of Commerce and
Economic Opportunity; a certified payroll must be filed
for only those calendar months during which construction
on a River Edge Construction Jobs Project has occurred;
the certified payroll shall consist of a complete copy of
the records identified in paragraph (1), but may exclude
the starting and ending times of work each day; the
certified payroll shall be accompanied by a statement
signed by the contractor or subcontractor or an officer,
employee, or agent of the contractor or subcontractor

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which avers that:
(A) he or she has examined the certified payroll
records required to be submitted and such records are
true and accurate; and
(B) the contractor or subcontractor is aware that
filing a certified payroll that he or she knows to be
false is a Class A misdemeanor.
A general contractor is not prohibited from relying on a
certified payroll of a lower-tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification.
Any contractor or subcontractor subject to this Section,
and any officer, employee, or agent of such contractor or
subcontractor whose duty as an officer, employee, or agent it
is to file a certified payroll under this Section, who
willfully fails to file such a certified payroll on or before
the date such certified payroll is required to be filed and any
person who willfully files a false certified payroll that is
false as to any material fact is in violation of this Act and
guilty of a Class A misdemeanor.
The taxpayer in charge of the project shall keep the
records submitted in accordance with this Section on or after
June 5, 2019 (the effective date of Public Act 101-9) for a
period of 5 years from the date of the last payment for work on
a contract or subcontract for the project.
The records submitted in accordance with this Section

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shall be considered public records, except an employee's
address, telephone number, and social security number, and
made available in accordance with the Freedom of Information
Act. The Department of Labor shall accept any reasonable
submissions by the contractor that meet the requirements of
this Section and shall share the information with the
Department in order to comply with the awarding of River Edge
construction jobs credits. A contractor, subcontractor, or
public body may retain records required under this Section in
paper or electronic format.
Upon 7 business days' notice, the taxpayer contractor and
each subcontractor shall make available for inspection and
copying at a location within this State during reasonable
hours, the records identified in paragraph (1) of this Section
to the taxpayer in charge of the project, its officers and
agents, the Director of Labor and his or her deputies and
agents, and to federal, State, or local law enforcement
agencies and prosecutors.
(Source: P.A. 101-9, eff. 6-5-19; 102-558, eff. 8-20-21.)
Section 65. The Public Utilities Act is amended by
changing Section 9-222 as follows:
(220 ILCS 5/9-222) (from Ch. 111 2/3, par. 9-222)
Sec. 9-222. Whenever a tax is imposed upon a public
utility engaged in the business of distributing, supplying,

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furnishing, or selling gas for use or consumption pursuant to
Section 2 of the Gas Revenue Tax Act, or whenever a tax is
required to be collected by a delivering supplier pursuant to
Section 2-7 of the Electricity Excise Tax Act, or whenever a
tax is imposed upon a public utility pursuant to Section 2-202
of this Act, such utility may charge its customers, other than
customers who are high impact businesses under Section 5.5 of
the Illinois Enterprise Zone Act, customers who are certified
under Section 95 of the Reimagining Energy and Vehicles in
Illinois Act, manufacturers under the Manufacturing Illinois
Chips for Real Opportunity (MICRO) Act, customers who are
tenants in a quantum computing campus enterprise zone under
Section 605-1115 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois,
or certified business enterprises under Section 9-222.1 of
this Act, to the extent of such exemption and during the period
in which such exemption is in effect, in addition to any rate
authorized by this Act, an additional charge equal to the
total amount of such taxes. The exemption of this Section
relating to high impact businesses shall be subject to the
provisions of subsections (a), (b), and (b-5) of Section 5.5
of the Illinois Enterprise Zone Act. This requirement shall
not apply to taxes on invested capital imposed pursuant to the
Messages Tax Act, the Gas Revenue Tax Act and the Public
Utilities Revenue Act. Such utility shall file with the
Commission a supplemental schedule which shall specify such

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