Bill Text: IL HB5015 | 2023-2024 | 103rd General Assembly | Introduced


Bill Title: Amends the Property Tax Code. Provides that certain property may be certified by the Department of Revenue as containing a megaproject. Provides that a "megaproject" is a project with respect to which a company makes a specified investment during a specified investment period. Provides that the megaproject property is eligible for an assessment freeze. Provides that megaproject property may be granted an abatement. Provides that a company that operates a megaproject shall enter into an agreement with an oversight board established by the local municipality and local taxing districts to make certain special payments. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that qualified tangible personal property used in the construction or operation of a megaproject is exempt from the taxes imposed under those Acts. Effective June 1, 2024.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-05 - Rule 19(a) / Re-referred to Rules Committee [HB5015 Detail]

Download: Illinois-2023-HB5015-Introduced.html

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5015

Introduced , by Rep. Mark L. Walker

SYNOPSIS AS INTRODUCED:
See Index

Amends the Property Tax Code. Provides that certain property may be certified by the Department of Revenue as containing a megaproject. Provides that a "megaproject" is a project with respect to which a company makes a specified investment during a specified investment period. Provides that the megaproject property is eligible for an assessment freeze. Provides that megaproject property may be granted an abatement. Provides that a company that operates a megaproject shall enter into an agreement with an oversight board established by the local municipality and local taxing districts to make certain special payments. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that qualified tangible personal property used in the construction or operation of a megaproject is exempt from the taxes imposed under those Acts. Effective June 1, 2024.
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A BILL FOR

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1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 1. This Act may be referred to as the Megaproject
5Tax Stability Act.
6 Section 5. The Use Tax Act is amended by changing Section
73-5 as follows:
8 (35 ILCS 105/3-5)
9 Sec. 3-5. Exemptions. Use of the following tangible
10personal property is exempt from the tax imposed by this Act:
11 (1) Personal property purchased from a corporation,
12society, association, foundation, institution, or
13organization, other than a limited liability company, that is
14organized and operated as a not-for-profit service enterprise
15for the benefit of persons 65 years of age or older if the
16personal property was not purchased by the enterprise for the
17purpose of resale by the enterprise.
18 (2) Personal property purchased by a not-for-profit
19Illinois county fair association for use in conducting,
20operating, or promoting the county fair.
21 (3) Personal property purchased by a not-for-profit arts
22or cultural organization that establishes, by proof required

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1by the Department by rule, that it has received an exemption
2under Section 501(c)(3) of the Internal Revenue Code and that
3is organized and operated primarily for the presentation or
4support of arts or cultural programming, activities, or
5services. These organizations include, but are not limited to,
6music and dramatic arts organizations such as symphony
7orchestras and theatrical groups, arts and cultural service
8organizations, local arts councils, visual arts organizations,
9and media arts organizations. On and after July 1, 2001 (the
10effective date of Public Act 92-35), however, an entity
11otherwise eligible for this exemption shall not make tax-free
12purchases unless it has an active identification number issued
13by the Department.
14 (4) Personal property purchased by a governmental body, by
15a corporation, society, association, foundation, or
16institution organized and operated exclusively for charitable,
17religious, or educational purposes, or by a not-for-profit
18corporation, society, association, foundation, institution, or
19organization that has no compensated officers or employees and
20that is organized and operated primarily for the recreation of
21persons 55 years of age or older. A limited liability company
22may qualify for the exemption under this paragraph only if the
23limited liability company is organized and operated
24exclusively for educational purposes. On and after July 1,
251987, however, no entity otherwise eligible for this exemption
26shall make tax-free purchases unless it has an active

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1exemption identification number issued by the Department.
2 (5) Until July 1, 2003, a passenger car that is a
3replacement vehicle to the extent that the purchase price of
4the car is subject to the Replacement Vehicle Tax.
5 (6) Until July 1, 2003 and beginning again on September 1,
62004 through August 30, 2014, graphic arts machinery and
7equipment, including repair and replacement parts, both new
8and used, and including that manufactured on special order,
9certified by the purchaser to be used primarily for graphic
10arts production, and including machinery and equipment
11purchased for lease. Equipment includes chemicals or chemicals
12acting as catalysts but only if the chemicals or chemicals
13acting as catalysts effect a direct and immediate change upon
14a graphic arts product. Beginning on July 1, 2017, graphic
15arts machinery and equipment is included in the manufacturing
16and assembling machinery and equipment exemption under
17paragraph (18).
18 (7) Farm chemicals.
19 (8) Legal tender, currency, medallions, or gold or silver
20coinage issued by the State of Illinois, the government of the
21United States of America, or the government of any foreign
22country, and bullion.
23 (9) Personal property purchased from a teacher-sponsored
24student organization affiliated with an elementary or
25secondary school located in Illinois.
26 (10) A motor vehicle that is used for automobile renting,

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

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1limited to, soil testing sensors, computers, monitors,
2software, global positioning and mapping systems, and other
3such equipment.
4 Farm machinery and equipment also includes computers,
5sensors, software, and related equipment used primarily in the
6computer-assisted operation of production agriculture
7facilities, equipment, and activities such as, but not limited
8to, the collection, monitoring, and correlation of animal and
9crop data for the purpose of formulating animal diets and
10agricultural chemicals. This item (11) is exempt from the
11provisions of Section 3-90.
12 (12) Until June 30, 2013, fuel and petroleum products sold
13to or used by an air common carrier, certified by the carrier
14to be used for consumption, shipment, or storage in the
15conduct of its business as an air common carrier, for a flight
16destined for or returning from a location or locations outside
17the United States without regard to previous or subsequent
18domestic stopovers.
19 Beginning July 1, 2013, fuel and petroleum products sold
20to or used by an air carrier, certified by the carrier to be
21used for consumption, shipment, or storage in the conduct of
22its business as an air common carrier, for a flight that (i) is
23engaged in foreign trade or is engaged in trade between the
24United States and any of its possessions and (ii) transports
25at least one individual or package for hire from the city of
26origination to the city of final destination on the same

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1aircraft, without regard to a change in the flight number of
2that aircraft.
3 (13) Proceeds of mandatory service charges separately
4stated on customers' bills for the purchase and consumption of
5food and beverages purchased at retail from a retailer, to the
6extent that the proceeds of the service charge are in fact
7turned over as tips or as a substitute for tips to the
8employees who participate directly in preparing, serving,
9hosting or cleaning up the food or beverage function with
10respect to which the service charge is imposed.
11 (14) Until July 1, 2003, oil field exploration, drilling,
12and production equipment, including (i) rigs and parts of
13rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
14pipe and tubular goods, including casing and drill strings,
15(iii) pumps and pump-jack units, (iv) storage tanks and flow
16lines, (v) any individual replacement part for oil field
17exploration, drilling, and production equipment, and (vi)
18machinery and equipment purchased for lease; but excluding
19motor vehicles required to be registered under the Illinois
20Vehicle Code.
21 (15) Photoprocessing machinery and equipment, including
22repair and replacement parts, both new and used, including
23that manufactured on special order, certified by the purchaser
24to be used primarily for photoprocessing, and including
25photoprocessing machinery and equipment purchased for lease.
26 (16) Until July 1, 2028, coal and aggregate exploration,

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1mining, off-highway hauling, processing, maintenance, and
2reclamation equipment, including replacement parts and
3equipment, and including equipment purchased for lease, but
4excluding motor vehicles required to be registered under the
5Illinois Vehicle Code. The changes made to this Section by
6Public Act 97-767 apply on and after July 1, 2003, but no claim
7for credit or refund is allowed on or after August 16, 2013
8(the effective date of Public Act 98-456) for such taxes paid
9during the period beginning July 1, 2003 and ending on August
1016, 2013 (the effective date of Public Act 98-456).
11 (17) Until July 1, 2003, distillation machinery and
12equipment, sold as a unit or kit, assembled or installed by the
13retailer, certified by the user to be used only for the
14production of ethyl alcohol that will be used for consumption
15as motor fuel or as a component of motor fuel for the personal
16use of the user, and not subject to sale or resale.
17 (18) Manufacturing and assembling machinery and equipment
18used primarily in the process of manufacturing or assembling
19tangible personal property for wholesale or retail sale or
20lease, whether that sale or lease is made directly by the
21manufacturer or by some other person, whether the materials
22used in the process are owned by the manufacturer or some other
23person, or whether that sale or lease is made apart from or as
24an incident to the seller's engaging in the service occupation
25of producing machines, tools, dies, jigs, patterns, gauges, or
26other similar items of no commercial value on special order

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1for a particular purchaser. The exemption provided by this
2paragraph (18) includes production related tangible personal
3property, as defined in Section 3-50, purchased on or after
4July 1, 2019. The exemption provided by this paragraph (18)
5does not include machinery and equipment used in (i) the
6generation of electricity for wholesale or retail sale; (ii)
7the generation or treatment of natural or artificial gas for
8wholesale or retail sale that is delivered to customers
9through pipes, pipelines, or mains; or (iii) the treatment of
10water for wholesale or retail sale that is delivered to
11customers through pipes, pipelines, or mains. The provisions
12of Public Act 98-583 are declaratory of existing law as to the
13meaning and scope of this exemption. Beginning on July 1,
142017, the exemption provided by this paragraph (18) includes,
15but is not limited to, graphic arts machinery and equipment,
16as defined in paragraph (6) of this Section.
17 (19) Personal property delivered to a purchaser or
18purchaser's donee inside Illinois when the purchase order for
19that personal property was received by a florist located
20outside Illinois who has a florist located inside Illinois
21deliver the personal property.
22 (20) Semen used for artificial insemination of livestock
23for direct agricultural production.
24 (21) Horses, or interests in horses, registered with and
25meeting the requirements of any of the Arabian Horse Club
26Registry of America, Appaloosa Horse Club, American Quarter

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1Horse Association, United States Trotting Association, or
2Jockey Club, as appropriate, used for purposes of breeding or
3racing for prizes. This item (21) is exempt from the
4provisions of Section 3-90, and the exemption provided for
5under this item (21) applies for all periods beginning May 30,
61995, but no claim for credit or refund is allowed on or after
7January 1, 2008 for such taxes paid during the period
8beginning May 30, 2000 and ending on January 1, 2008.
9 (22) Computers and communications equipment utilized for
10any hospital purpose and equipment used in the diagnosis,
11analysis, or treatment of hospital patients purchased by a
12lessor who leases the equipment, under a lease of one year or
13longer executed or in effect at the time the lessor would
14otherwise be subject to the tax imposed by this Act, to a
15hospital that has been issued an active tax exemption
16identification number by the Department under Section 1g of
17the Retailers' Occupation Tax Act. If the equipment is leased
18in a manner that does not qualify for this exemption or is used
19in any other non-exempt manner, the lessor shall be liable for
20the tax imposed under this Act or the Service Use Tax Act, as
21the case may be, based on the fair market value of the property
22at the time the non-qualifying use occurs. No lessor shall
23collect or attempt to collect an amount (however designated)
24that purports to reimburse that lessor for the tax imposed by
25this Act or the Service Use Tax Act, as the case may be, if the
26tax has not been paid by the lessor. If a lessor improperly

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

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1 (24) Beginning with taxable years ending on or after
2December 31, 1995 and ending with taxable years ending on or
3before December 31, 2004, personal property that is donated
4for disaster relief to be used in a State or federally declared
5disaster area in Illinois or bordering Illinois by a
6manufacturer or retailer that is registered in this State to a
7corporation, society, association, foundation, or institution
8that has been issued a sales tax exemption identification
9number by the Department that assists victims of the disaster
10who reside within the declared disaster area.
11 (25) Beginning with taxable years ending on or after
12December 31, 1995 and ending with taxable years ending on or
13before December 31, 2004, personal property that is used in
14the performance of infrastructure repairs in this State,
15including but not limited to municipal roads and streets,
16access roads, bridges, sidewalks, waste disposal systems,
17water and sewer line extensions, water distribution and
18purification facilities, storm water drainage and retention
19facilities, and sewage treatment facilities, resulting from a
20State or federally declared disaster in Illinois or bordering
21Illinois when such repairs are initiated on facilities located
22in the declared disaster area within 6 months after the
23disaster.
24 (26) Beginning July 1, 1999, game or game birds purchased
25at a "game breeding and hunting preserve area" as that term is
26used in the Wildlife Code. This paragraph is exempt from the

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1provisions of Section 3-90.
2 (27) A motor vehicle, as that term is defined in Section
31-146 of the Illinois Vehicle Code, that is donated to a
4corporation, limited liability company, society, association,
5foundation, or institution that is determined by the
6Department to be organized and operated exclusively for
7educational purposes. For purposes of this exemption, "a
8corporation, limited liability company, society, association,
9foundation, or institution organized and operated exclusively
10for educational purposes" means all tax-supported public
11schools, private schools that offer systematic instruction in
12useful branches of learning by methods common to public
13schools and that compare favorably in their scope and
14intensity with the course of study presented in tax-supported
15schools, and vocational or technical schools or institutes
16organized and operated exclusively to provide a course of
17study of not less than 6 weeks duration and designed to prepare
18individuals to follow a trade or to pursue a manual,
19technical, mechanical, industrial, business, or commercial
20occupation.
21 (28) Beginning January 1, 2000, personal property,
22including food, purchased through fundraising events for the
23benefit of a public or private elementary or secondary school,
24a group of those schools, or one or more school districts if
25the events are sponsored by an entity recognized by the school
26district that consists primarily of volunteers and includes

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1parents and teachers of the school children. This paragraph
2does not apply to fundraising events (i) for the benefit of
3private home instruction or (ii) for which the fundraising
4entity purchases the personal property sold at the events from
5another individual or entity that sold the property for the
6purpose of resale by the fundraising entity and that profits
7from the sale to the fundraising entity. This paragraph is
8exempt from the provisions of Section 3-90.
9 (29) Beginning January 1, 2000 and through December 31,
102001, new or used automatic vending machines that prepare and
11serve hot food and beverages, including coffee, soup, and
12other items, and replacement parts for these machines.
13Beginning January 1, 2002 and through June 30, 2003, machines
14and parts for machines used in commercial, coin-operated
15amusement and vending business if a use or occupation tax is
16paid on the gross receipts derived from the use of the
17commercial, coin-operated amusement and vending machines. This
18paragraph is exempt from the provisions of Section 3-90.
19 (30) Beginning January 1, 2001 and through June 30, 2016,
20food for human consumption that is to be consumed off the
21premises where it is sold (other than alcoholic beverages,
22soft drinks, and food that has been prepared for immediate
23consumption) and prescription and nonprescription medicines,
24drugs, medical appliances, and insulin, urine testing
25materials, syringes, and needles used by diabetics, for human
26use, when purchased for use by a person receiving medical

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1assistance under Article V of the Illinois Public Aid Code who
2resides in a licensed long-term care facility, as defined in
3the Nursing Home Care Act, or in a licensed facility as defined
4in the ID/DD Community Care Act, the MC/DD Act, or the
5Specialized Mental Health Rehabilitation Act of 2013.
6 (31) Beginning on August 2, 2001 (the effective date of
7Public Act 92-227), computers and communications equipment
8utilized for any hospital purpose and equipment used in the
9diagnosis, analysis, or treatment of hospital patients
10purchased by a lessor who leases the equipment, under a lease
11of one year or longer executed or in effect at the time the
12lessor would otherwise be subject to the tax imposed by this
13Act, to a hospital that has been issued an active tax exemption
14identification number by the Department under Section 1g of
15the Retailers' Occupation Tax Act. If the equipment is leased
16in a manner that does not qualify for this exemption or is used
17in any other nonexempt manner, the lessor shall be liable for
18the tax imposed under this Act or the Service Use Tax Act, as
19the case may be, based on the fair market value of the property
20at the time the nonqualifying use occurs. No lessor shall
21collect or attempt to collect an amount (however designated)
22that purports to reimburse that lessor for the tax imposed by
23this Act or the Service Use Tax Act, as the case may be, if the
24tax has not been paid by the lessor. If a lessor improperly
25collects any such amount from the lessee, the lessee shall
26have a legal right to claim a refund of that amount from the

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

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1Section 3-90.
2 (33) On and after July 1, 2003 and through June 30, 2004,
3the use in this State of motor vehicles of the second division
4with a gross vehicle weight in excess of 8,000 pounds and that
5are subject to the commercial distribution fee imposed under
6Section 3-815.1 of the Illinois Vehicle Code. Beginning on
7July 1, 2004 and through June 30, 2005, the use in this State
8of motor vehicles of the second division: (i) with a gross
9vehicle weight rating in excess of 8,000 pounds; (ii) that are
10subject to the commercial distribution fee imposed under
11Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
12are primarily used for commercial purposes. Through June 30,
132005, this exemption applies to repair and replacement parts
14added after the initial purchase of such a motor vehicle if
15that motor vehicle is used in a manner that would qualify for
16the rolling stock exemption otherwise provided for in this
17Act. For purposes of this paragraph, the term "used for
18commercial purposes" means the transportation of persons or
19property in furtherance of any commercial or industrial
20enterprise, whether for-hire or not.
21 (34) Beginning January 1, 2008, tangible personal property
22used in the construction or maintenance of a community water
23supply, as defined under Section 3.145 of the Environmental
24Protection Act, that is operated by a not-for-profit
25corporation that holds a valid water supply permit issued
26under Title IV of the Environmental Protection Act. This

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1paragraph is exempt from the provisions of Section 3-90.
2 (35) Beginning January 1, 2010 and continuing through
3December 31, 2024, materials, parts, equipment, components,
4and furnishings incorporated into or upon an aircraft as part
5of the modification, refurbishment, completion, replacement,
6repair, or maintenance of the aircraft. This exemption
7includes consumable supplies used in the modification,
8refurbishment, completion, replacement, repair, and
9maintenance of aircraft, but excludes any materials, parts,
10equipment, components, and consumable supplies used in the
11modification, replacement, repair, and maintenance of aircraft
12engines or power plants, whether such engines or power plants
13are installed or uninstalled upon any such aircraft.
14"Consumable supplies" include, but are not limited to,
15adhesive, tape, sandpaper, general purpose lubricants,
16cleaning solution, latex gloves, and protective films. This
17exemption applies only to the use of qualifying tangible
18personal property by persons who modify, refurbish, complete,
19repair, replace, or maintain aircraft and who (i) hold an Air
20Agency Certificate and are empowered to operate an approved
21repair station by the Federal Aviation Administration, (ii)
22have a Class IV Rating, and (iii) conduct operations in
23accordance with Part 145 of the Federal Aviation Regulations.
24The exemption does not include aircraft operated by a
25commercial air carrier providing scheduled passenger air
26service pursuant to authority issued under Part 121 or Part

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1129 of the Federal Aviation Regulations. The changes made to
2this paragraph (35) by Public Act 98-534 are declarative of
3existing law. It is the intent of the General Assembly that the
4exemption under this paragraph (35) applies continuously from
5January 1, 2010 through December 31, 2024; however, no claim
6for credit or refund is allowed for taxes paid as a result of
7the disallowance of this exemption on or after January 1, 2015
8and prior to February 5, 2020 (the effective date of Public Act
9101-629) this amendatory Act of the 101st General Assembly.
10 (36) Tangible personal property purchased by a
11public-facilities corporation, as described in Section
1211-65-10 of the Illinois Municipal Code, for purposes of
13constructing or furnishing a municipal convention hall, but
14only if the legal title to the municipal convention hall is
15transferred to the municipality without any further
16consideration by or on behalf of the municipality at the time
17of the completion of the municipal convention hall or upon the
18retirement or redemption of any bonds or other debt
19instruments issued by the public-facilities corporation in
20connection with the development of the municipal convention
21hall. This exemption includes existing public-facilities
22corporations as provided in Section 11-65-25 of the Illinois
23Municipal Code. This paragraph is exempt from the provisions
24of Section 3-90.
25 (37) Beginning January 1, 2017 and through December 31,
262026, menstrual pads, tampons, and menstrual cups.

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1 (38) Merchandise that is subject to the Rental Purchase
2Agreement Occupation and Use Tax. The purchaser must certify
3that the item is purchased to be rented subject to a rental
4purchase agreement, as defined in the Rental Purchase
5Agreement Act, and provide proof of registration under the
6Rental Purchase Agreement Occupation and Use Tax Act. This
7paragraph is exempt from the provisions of Section 3-90.
8 (39) Tangible personal property purchased by a purchaser
9who is exempt from the tax imposed by this Act by operation of
10federal law. This paragraph is exempt from the provisions of
11Section 3-90.
12 (40) Qualified tangible personal property used in the
13construction or operation of a data center that has been
14granted a certificate of exemption by the Department of
15Commerce and Economic Opportunity, whether that tangible
16personal property is purchased by the owner, operator, or
17tenant of the data center or by a contractor or subcontractor
18of the owner, operator, or tenant. Data centers that would
19have qualified for a certificate of exemption prior to January
201, 2020 had Public Act 101-31 been in effect may apply for and
21obtain an exemption for subsequent purchases of computer
22equipment or enabling software purchased or leased to upgrade,
23supplement, or replace computer equipment or enabling software
24purchased or leased in the original investment that would have
25qualified.
26 The Department of Commerce and Economic Opportunity shall

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1grant a certificate of exemption under this item (40) to
2qualified data centers as defined by Section 605-1025 of the
3Department of Commerce and Economic Opportunity Law of the
4Civil Administrative Code of Illinois.
5 For the purposes of this item (40):
6 "Data center" means a building or a series of
7 buildings rehabilitated or constructed to house working
8 servers in one physical location or multiple sites within
9 the State of Illinois.
10 "Qualified tangible personal property" means:
11 electrical systems and equipment; climate control and
12 chilling equipment and systems; mechanical systems and
13 equipment; monitoring and secure systems; emergency
14 generators; hardware; computers; servers; data storage
15 devices; network connectivity equipment; racks; cabinets;
16 telecommunications cabling infrastructure; raised floor
17 systems; peripheral components or systems; software;
18 mechanical, electrical, or plumbing systems; battery
19 systems; cooling systems and towers; temperature control
20 systems; other cabling; and other data center
21 infrastructure equipment and systems necessary to operate
22 qualified tangible personal property, including fixtures;
23 and component parts of any of the foregoing, including
24 installation, maintenance, repair, refurbishment, and
25 replacement of qualified tangible personal property to
26 generate, transform, transmit, distribute, or manage

HB5015- 21 -LRB103 33725 HLH 63537 b
1 electricity necessary to operate qualified tangible
2 personal property; and all other tangible personal
3 property that is essential to the operations of a computer
4 data center. The term "qualified tangible personal
5 property" also includes building materials physically
6 incorporated in to the qualifying data center. To document
7 the exemption allowed under this Section, the retailer
8 must obtain from the purchaser a copy of the certificate
9 of eligibility issued by the Department of Commerce and
10 Economic Opportunity.
11 This item (40) is exempt from the provisions of Section
123-90.
13 (41) Beginning July 1, 2022, breast pumps, breast pump
14collection and storage supplies, and breast pump kits. This
15item (41) is exempt from the provisions of Section 3-90. As
16used in this item (41):
17 "Breast pump" means an electrically controlled or
18 manually controlled pump device designed or marketed to be
19 used to express milk from a human breast during lactation,
20 including the pump device and any battery, AC adapter, or
21 other power supply unit that is used to power the pump
22 device and is packaged and sold with the pump device at the
23 time of sale.
24 "Breast pump collection and storage supplies" means
25 items of tangible personal property designed or marketed
26 to be used in conjunction with a breast pump to collect

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1 milk expressed from a human breast and to store collected
2 milk until it is ready for consumption.
3 "Breast pump collection and storage supplies"
4 includes, but is not limited to: breast shields and breast
5 shield connectors; breast pump tubes and tubing adapters;
6 breast pump valves and membranes; backflow protectors and
7 backflow protector adaptors; bottles and bottle caps
8 specific to the operation of the breast pump; and breast
9 milk storage bags.
10 "Breast pump collection and storage supplies" does not
11 include: (1) bottles and bottle caps not specific to the
12 operation of the breast pump; (2) breast pump travel bags
13 and other similar carrying accessories, including ice
14 packs, labels, and other similar products; (3) breast pump
15 cleaning supplies; (4) nursing bras, bra pads, breast
16 shells, and other similar products; and (5) creams,
17 ointments, and other similar products that relieve
18 breastfeeding-related symptoms or conditions of the
19 breasts or nipples, unless sold as part of a breast pump
20 kit that is pre-packaged by the breast pump manufacturer
21 or distributor.
22 "Breast pump kit" means a kit that: (1) contains no
23 more than a breast pump, breast pump collection and
24 storage supplies, a rechargeable battery for operating the
25 breast pump, a breastmilk cooler, bottle stands, ice
26 packs, and a breast pump carrying case; and (2) is

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1 pre-packaged as a breast pump kit by the breast pump
2 manufacturer or distributor.
3 (42) (41) Tangible personal property sold by or on behalf
4of the State Treasurer pursuant to the Revised Uniform
5Unclaimed Property Act. This item (42) (41) is exempt from the
6provisions of Section 3-90.
7 (43) Qualified tangible personal property used in the
8construction or operation of a megaproject for which a
9certificate has been issued by the Department under Division
1022 of Article 10 of the Property Tax Code, whether that
11tangible personal property is purchased by the owner,
12operator, or tenant of the megaproject or by a contractor or
13subcontractor of the owner, operator, or tenant.
14 As used in this item (43):
15 "Facility" means a building or series of buildings.
16 "Megaproject" means a facility that is rehabilitated or
17constructed as described in Division 22 of Article 10 of the
18Property Tax Code.
19 "Qualified tangible personal property" means: electrical
20systems and equipment; climate control and chilling equipment
21and systems; mechanical systems and equipment; monitoring and
22secure systems; emergency generators; hardware; computers;
23servers; data storage devices; network connectivity equipment;
24racks; cabinets; telecommunications cabling infrastructure;
25raised floor systems; peripheral components or systems;
26software; mechanical, electrical, or plumbing systems; battery

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1systems; cooling systems and towers; temperature control
2systems; other cabling; and other data center infrastructure
3equipment and systems necessary to operate qualified tangible
4personal property, including fixtures; and component parts of
5those items, including installation, maintenance, repair,
6refurbishment, and replacement of qualified tangible personal
7property to generate, transform, transmit, distribute, or
8manage electricity necessary to operate qualified tangible
9personal property; and all other tangible personal property
10that is essential to the operations of a megaproject. The term
11"qualified tangible personal property" also includes building
12materials to be incorporated into the megaproject. To document
13the exemption allowed under this Section, the retailer,
14contractor or subcontractor or supplier must obtain from the
15purchaser a copy of the certificate issued by the Department
16of Revenue for the megaproject as described and defined in
17Division 22 of Article 10 of the Property Tax Code.
18 This item (43) is exempt from the provisions of Section
193-90.
20(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
21101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
226-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
23102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
24eff. 5-27-22; revised 8-1-22.)
25 Section 10. The Service Use Tax Act is amended by changing

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1Section 3-5 as follows:
2 (35 ILCS 110/3-5)
3 Sec. 3-5. Exemptions. Use of the following tangible
4personal property is exempt from the tax imposed by this Act:
5 (1) Personal property purchased from a corporation,
6society, association, foundation, institution, or
7organization, other than a limited liability company, that is
8organized and operated as a not-for-profit service enterprise
9for the benefit of persons 65 years of age or older if the
10personal property was not purchased by the enterprise for the
11purpose of resale by the enterprise.
12 (2) Personal property purchased by a non-profit Illinois
13county fair association for use in conducting, operating, or
14promoting the county fair.
15 (3) Personal property purchased by a not-for-profit arts
16or cultural organization that establishes, by proof required
17by the Department by rule, that it has received an exemption
18under Section 501(c)(3) of the Internal Revenue Code and that
19is organized and operated primarily for the presentation or
20support of arts or cultural programming, activities, or
21services. These organizations include, but are not limited to,
22music and dramatic arts organizations such as symphony
23orchestras and theatrical groups, arts and cultural service
24organizations, local arts councils, visual arts organizations,
25and media arts organizations. On and after July 1, 2001 (the

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1effective date of Public Act 92-35), however, an entity
2otherwise eligible for this exemption shall not make tax-free
3purchases unless it has an active identification number issued
4by the Department.
5 (4) Legal tender, currency, medallions, or gold or silver
6coinage issued by the State of Illinois, the government of the
7United States of America, or the government of any foreign
8country, and bullion.
9 (5) Until July 1, 2003 and beginning again on September 1,
102004 through August 30, 2014, graphic arts machinery and
11equipment, including repair and replacement parts, both new
12and used, and including that manufactured on special order or
13purchased for lease, certified by the purchaser to be used
14primarily for graphic arts production. Equipment includes
15chemicals or chemicals acting as catalysts but only if the
16chemicals or chemicals acting as catalysts effect a direct and
17immediate change upon a graphic arts product. Beginning on
18July 1, 2017, graphic arts machinery and equipment is included
19in the manufacturing and assembling machinery and equipment
20exemption under Section 2 of this Act.
21 (6) Personal property purchased from a teacher-sponsored
22student organization affiliated with an elementary or
23secondary school located in Illinois.
24 (7) Farm machinery and equipment, both new and used,
25including that manufactured on special order, certified by the
26purchaser to be used primarily for production agriculture or

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

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1computer-assisted operation of production agriculture
2facilities, equipment, and activities such as, but not limited
3to, the collection, monitoring, and correlation of animal and
4crop data for the purpose of formulating animal diets and
5agricultural chemicals. This item (7) is exempt from the
6provisions of Section 3-75.
7 (8) Until June 30, 2013, fuel and petroleum products sold
8to or used by an air common carrier, certified by the carrier
9to be used for consumption, shipment, or storage in the
10conduct of its business as an air common carrier, for a flight
11destined for or returning from a location or locations outside
12the United States without regard to previous or subsequent
13domestic stopovers.
14 Beginning July 1, 2013, fuel and petroleum products sold
15to or used by an air carrier, certified by the carrier to be
16used for consumption, shipment, or storage in the conduct of
17its business as an air common carrier, for a flight that (i) is
18engaged in foreign trade or is engaged in trade between the
19United States and any of its possessions and (ii) transports
20at least one individual or package for hire from the city of
21origination to the city of final destination on the same
22aircraft, without regard to a change in the flight number of
23that aircraft.
24 (9) Proceeds of mandatory service charges separately
25stated on customers' bills for the purchase and consumption of
26food and beverages acquired as an incident to the purchase of a

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1service from a serviceman, to the extent that the proceeds of
2the service charge are in fact turned over as tips or as a
3substitute for tips to the employees who participate directly
4in preparing, serving, hosting or cleaning up the food or
5beverage function with respect to which the service charge is
6imposed.
7 (10) Until July 1, 2003, oil field exploration, drilling,
8and production equipment, including (i) rigs and parts of
9rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
10pipe and tubular goods, including casing and drill strings,
11(iii) pumps and pump-jack units, (iv) storage tanks and flow
12lines, (v) any individual replacement part for oil field
13exploration, drilling, and production equipment, and (vi)
14machinery and equipment purchased for lease; but excluding
15motor vehicles required to be registered under the Illinois
16Vehicle Code.
17 (11) Proceeds from the sale of photoprocessing machinery
18and equipment, including repair and replacement parts, both
19new and used, including that manufactured on special order,
20certified by the purchaser to be used primarily for
21photoprocessing, and including photoprocessing machinery and
22equipment purchased for lease.
23 (12) Until July 1, 2028, coal and aggregate exploration,
24mining, off-highway hauling, processing, maintenance, and
25reclamation equipment, including replacement parts and
26equipment, and including equipment purchased for lease, but

HB5015- 30 -LRB103 33725 HLH 63537 b
1excluding motor vehicles required to be registered under the
2Illinois Vehicle Code. The changes made to this Section by
3Public Act 97-767 apply on and after July 1, 2003, but no claim
4for credit or refund is allowed on or after August 16, 2013
5(the effective date of Public Act 98-456) for such taxes paid
6during the period beginning July 1, 2003 and ending on August
716, 2013 (the effective date of Public Act 98-456).
8 (13) Semen used for artificial insemination of livestock
9for direct agricultural production.
10 (14) Horses, or interests in horses, registered with and
11meeting the requirements of any of the Arabian Horse Club
12Registry of America, Appaloosa Horse Club, American Quarter
13Horse Association, United States Trotting Association, or
14Jockey Club, as appropriate, used for purposes of breeding or
15racing for prizes. This item (14) is exempt from the
16provisions of Section 3-75, and the exemption provided for
17under this item (14) applies for all periods beginning May 30,
181995, but no claim for credit or refund is allowed on or after
19January 1, 2008 (the effective date of Public Act 95-88) for
20such taxes paid during the period beginning May 30, 2000 and
21ending on January 1, 2008 (the effective date of Public Act
2295-88).
23 (15) Computers and communications equipment utilized for
24any hospital purpose and equipment used in the diagnosis,
25analysis, or treatment of hospital patients purchased by a
26lessor who leases the equipment, under a lease of one year or

HB5015- 31 -LRB103 33725 HLH 63537 b
1longer executed or in effect at the time the lessor would
2otherwise be subject to the tax imposed by this Act, to a
3hospital that has been issued an active tax exemption
4identification number by the Department under Section 1g of
5the Retailers' Occupation Tax Act. If the equipment is leased
6in a manner that does not qualify for this exemption or is used
7in any other non-exempt manner, the lessor shall be liable for
8the tax imposed under this Act or the Use Tax Act, as the case
9may be, based on the fair market value of the property at the
10time the non-qualifying use occurs. No lessor shall collect or
11attempt to collect an amount (however designated) that
12purports to reimburse that lessor for the tax imposed by this
13Act or the Use Tax Act, as the case may be, if the tax has not
14been paid by the lessor. If a lessor improperly collects any
15such amount from the lessee, the lessee shall have a legal
16right to claim a refund of that amount from the lessor. If,
17however, that amount is not refunded to the lessee for any
18reason, the lessor is liable to pay that amount to the
19Department.
20 (16) Personal property purchased by a lessor who leases
21the property, under a lease of one year or longer executed or
22in effect at the time the lessor would otherwise be subject to
23the tax imposed by this Act, to a governmental body that has
24been issued an active tax exemption identification number by
25the Department under Section 1g of the Retailers' Occupation
26Tax Act. If the property is leased in a manner that does not

HB5015- 32 -LRB103 33725 HLH 63537 b
1qualify for this exemption or is used in any other non-exempt
2manner, the lessor shall be liable for the tax imposed under
3this Act or the Use Tax Act, as the case may be, based on the
4fair market value of the property at the time the
5non-qualifying use occurs. No lessor shall collect or attempt
6to collect an amount (however designated) that purports to
7reimburse that lessor for the tax imposed by this Act or the
8Use Tax Act, as the case may be, if the tax has not been paid
9by the lessor. If a lessor improperly collects any such amount
10from the lessee, the lessee shall have a legal right to claim a
11refund of that amount from the lessor. If, however, that
12amount is not refunded to the lessee for any reason, the lessor
13is liable to pay that amount to the Department.
14 (17) Beginning with taxable years ending on or after
15December 31, 1995 and ending with taxable years ending on or
16before December 31, 2004, personal property that is donated
17for disaster relief to be used in a State or federally declared
18disaster area in Illinois or bordering Illinois by a
19manufacturer or retailer that is registered in this State to a
20corporation, society, association, foundation, or institution
21that has been issued a sales tax exemption identification
22number by the Department that assists victims of the disaster
23who reside within the declared disaster area.
24 (18) Beginning with taxable years ending on or after
25December 31, 1995 and ending with taxable years ending on or
26before December 31, 2004, personal property that is used in

HB5015- 33 -LRB103 33725 HLH 63537 b
1the performance of infrastructure repairs in this State,
2including but not limited to municipal roads and streets,
3access roads, bridges, sidewalks, waste disposal systems,
4water and sewer line extensions, water distribution and
5purification facilities, storm water drainage and retention
6facilities, and sewage treatment facilities, resulting from a
7State or federally declared disaster in Illinois or bordering
8Illinois when such repairs are initiated on facilities located
9in the declared disaster area within 6 months after the
10disaster.
11 (19) Beginning July 1, 1999, game or game birds purchased
12at a "game breeding and hunting preserve area" as that term is
13used in the Wildlife Code. This paragraph is exempt from the
14provisions of Section 3-75.
15 (20) A motor vehicle, as that term is defined in Section
161-146 of the Illinois Vehicle Code, that is donated to a
17corporation, limited liability company, society, association,
18foundation, or institution that is determined by the
19Department to be organized and operated exclusively for
20educational purposes. For purposes of this exemption, "a
21corporation, limited liability company, society, association,
22foundation, or institution organized and operated exclusively
23for educational purposes" means all tax-supported public
24schools, private schools that offer systematic instruction in
25useful branches of learning by methods common to public
26schools and that compare favorably in their scope and

HB5015- 34 -LRB103 33725 HLH 63537 b
1intensity with the course of study presented in tax-supported
2schools, and vocational or technical schools or institutes
3organized and operated exclusively to provide a course of
4study of not less than 6 weeks duration and designed to prepare
5individuals to follow a trade or to pursue a manual,
6technical, mechanical, industrial, business, or commercial
7occupation.
8 (21) Beginning January 1, 2000, personal property,
9including food, purchased through fundraising events for the
10benefit of a public or private elementary or secondary school,
11a group of those schools, or one or more school districts if
12the events are sponsored by an entity recognized by the school
13district that consists primarily of volunteers and includes
14parents and teachers of the school children. This paragraph
15does not apply to fundraising events (i) for the benefit of
16private home instruction or (ii) for which the fundraising
17entity purchases the personal property sold at the events from
18another individual or entity that sold the property for the
19purpose of resale by the fundraising entity and that profits
20from the sale to the fundraising entity. This paragraph is
21exempt from the provisions of Section 3-75.
22 (22) Beginning January 1, 2000 and through December 31,
232001, new or used automatic vending machines that prepare and
24serve hot food and beverages, including coffee, soup, and
25other items, and replacement parts for these machines.
26Beginning January 1, 2002 and through June 30, 2003, machines

HB5015- 35 -LRB103 33725 HLH 63537 b
1and parts for machines used in commercial, coin-operated
2amusement and vending business if a use or occupation tax is
3paid on the gross receipts derived from the use of the
4commercial, coin-operated amusement and vending machines. This
5paragraph is exempt from the provisions of Section 3-75.
6 (23) Beginning August 23, 2001 and through June 30, 2016,
7food for human consumption that is to be consumed off the
8premises where it is sold (other than alcoholic beverages,
9soft drinks, and food that has been prepared for immediate
10consumption) and prescription and nonprescription medicines,
11drugs, medical appliances, and insulin, urine testing
12materials, syringes, and needles used by diabetics, for human
13use, when purchased for use by a person receiving medical
14assistance under Article V of the Illinois Public Aid Code who
15resides in a licensed long-term care facility, as defined in
16the Nursing Home Care Act, or in a licensed facility as defined
17in the ID/DD Community Care Act, the MC/DD Act, or the
18Specialized Mental Health Rehabilitation Act of 2013.
19 (24) Beginning on August 2, 2001 (the effective date of
20Public Act 92-227), computers and communications equipment
21utilized for any hospital purpose and equipment used in the
22diagnosis, analysis, or treatment of hospital patients
23purchased by a lessor who leases the equipment, under a lease
24of one year or longer executed or in effect at the time the
25lessor would otherwise be subject to the tax imposed by this
26Act, to a hospital that has been issued an active tax exemption

HB5015- 36 -LRB103 33725 HLH 63537 b
1identification number by the Department under Section 1g of
2the Retailers' Occupation Tax Act. If the equipment is leased
3in a manner that does not qualify for this exemption or is used
4in any other nonexempt manner, the lessor shall be liable for
5the tax imposed under this Act or the Use Tax Act, as the case
6may be, based on the fair market value of the property at the
7time the nonqualifying use occurs. No lessor shall collect or
8attempt to collect an amount (however designated) that
9purports to reimburse that lessor for the tax imposed by this
10Act or the Use Tax Act, as the case may be, if the tax has not
11been paid by the lessor. If a lessor improperly collects any
12such amount from the lessee, the lessee shall have a legal
13right to claim a refund of that amount from the lessor. If,
14however, that amount is not refunded to the lessee for any
15reason, the lessor is liable to pay that amount to the
16Department. This paragraph is exempt from the provisions of
17Section 3-75.
18 (25) Beginning on August 2, 2001 (the effective date of
19Public Act 92-227), personal property purchased by a lessor
20who leases the property, under a lease of one year or longer
21executed or in effect at the time the lessor would otherwise be
22subject to the tax imposed by this Act, to a governmental body
23that has been issued an active tax exemption identification
24number by the Department under Section 1g of the Retailers'
25Occupation Tax Act. If the property is leased in a manner that
26does not qualify for this exemption or is used in any other

HB5015- 37 -LRB103 33725 HLH 63537 b
1nonexempt manner, the lessor shall be liable for the tax
2imposed under this Act or the Use Tax Act, as the case may be,
3based on the fair market value of the property at the time the
4nonqualifying use occurs. No lessor shall collect or attempt
5to collect an amount (however designated) that purports to
6reimburse that lessor for the tax imposed by this Act or the
7Use Tax Act, as the case may be, if the tax has not been paid
8by the lessor. If a lessor improperly collects any such amount
9from the lessee, the lessee shall have a legal right to claim a
10refund of that amount from the lessor. If, however, that
11amount is not refunded to the lessee for any reason, the lessor
12is liable to pay that amount to the Department. This paragraph
13is exempt from the provisions of Section 3-75.
14 (26) Beginning January 1, 2008, tangible personal property
15used in the construction or maintenance of a community water
16supply, as defined under Section 3.145 of the Environmental
17Protection Act, that is operated by a not-for-profit
18corporation that holds a valid water supply permit issued
19under Title IV of the Environmental Protection Act. This
20paragraph is exempt from the provisions of Section 3-75.
21 (27) Beginning January 1, 2010 and continuing through
22December 31, 2024, materials, parts, equipment, components,
23and furnishings incorporated into or upon an aircraft as part
24of the modification, refurbishment, completion, replacement,
25repair, or maintenance of the aircraft. This exemption
26includes consumable supplies used in the modification,

HB5015- 38 -LRB103 33725 HLH 63537 b
1refurbishment, completion, replacement, repair, and
2maintenance of aircraft, but excludes any materials, parts,
3equipment, components, and consumable supplies used in the
4modification, replacement, repair, and maintenance of aircraft
5engines or power plants, whether such engines or power plants
6are installed or uninstalled upon any such aircraft.
7"Consumable supplies" include, but are not limited to,
8adhesive, tape, sandpaper, general purpose lubricants,
9cleaning solution, latex gloves, and protective films. This
10exemption applies only to the use of qualifying tangible
11personal property transferred incident to the modification,
12refurbishment, completion, replacement, repair, or maintenance
13of aircraft by persons who (i) hold an Air Agency Certificate
14and are empowered to operate an approved repair station by the
15Federal Aviation Administration, (ii) have a Class IV Rating,
16and (iii) conduct operations in accordance with Part 145 of
17the Federal Aviation Regulations. The exemption does not
18include aircraft operated by a commercial air carrier
19providing scheduled passenger air service pursuant to
20authority issued under Part 121 or Part 129 of the Federal
21Aviation Regulations. The changes made to this paragraph (27)
22by Public Act 98-534 are declarative of existing law. It is the
23intent of the General Assembly that the exemption under this
24paragraph (27) applies continuously from January 1, 2010
25through December 31, 2024; however, no claim for credit or
26refund is allowed for taxes paid as a result of the

HB5015- 39 -LRB103 33725 HLH 63537 b
1disallowance of this exemption on or after January 1, 2015 and
2prior to February 5, 2020 (the effective date of Public Act
3101-629) this amendatory Act of the 101st General Assembly.
4 (28) Tangible personal property purchased by a
5public-facilities corporation, as described in Section
611-65-10 of the Illinois Municipal Code, for purposes of
7constructing or furnishing a municipal convention hall, but
8only if the legal title to the municipal convention hall is
9transferred to the municipality without any further
10consideration by or on behalf of the municipality at the time
11of the completion of the municipal convention hall or upon the
12retirement or redemption of any bonds or other debt
13instruments issued by the public-facilities corporation in
14connection with the development of the municipal convention
15hall. This exemption includes existing public-facilities
16corporations as provided in Section 11-65-25 of the Illinois
17Municipal Code. This paragraph is exempt from the provisions
18of Section 3-75.
19 (29) Beginning January 1, 2017 and through December 31,
202026, menstrual pads, tampons, and menstrual cups.
21 (30) Tangible personal property transferred to a purchaser
22who is exempt from the tax imposed by this Act by operation of
23federal law. This paragraph is exempt from the provisions of
24Section 3-75.
25 (31) Qualified tangible personal property used in the
26construction or operation of a data center that has been

HB5015- 40 -LRB103 33725 HLH 63537 b
1granted a certificate of exemption by the Department of
2Commerce and Economic Opportunity, whether that tangible
3personal property is purchased by the owner, operator, or
4tenant of the data center or by a contractor or subcontractor
5of the owner, operator, or tenant. Data centers that would
6have qualified for a certificate of exemption prior to January
71, 2020 had Public Act 101-31 this amendatory Act of the 101st
8General Assembly been in effect, may apply for and obtain an
9exemption for subsequent purchases of computer equipment or
10enabling software purchased or leased to upgrade, supplement,
11or replace computer equipment or enabling software purchased
12or leased in the original investment that would have
13qualified.
14 The Department of Commerce and Economic Opportunity shall
15grant a certificate of exemption under this item (31) to
16qualified data centers as defined by Section 605-1025 of the
17Department of Commerce and Economic Opportunity Law of the
18Civil Administrative Code of Illinois.
19 For the purposes of this item (31):
20 "Data center" means a building or a series of
21 buildings rehabilitated or constructed to house working
22 servers in one physical location or multiple sites within
23 the State of Illinois.
24 "Qualified tangible personal property" means:
25 electrical systems and equipment; climate control and
26 chilling equipment and systems; mechanical systems and

HB5015- 41 -LRB103 33725 HLH 63537 b
1 equipment; monitoring and secure systems; emergency
2 generators; hardware; computers; servers; data storage
3 devices; network connectivity equipment; racks; cabinets;
4 telecommunications cabling infrastructure; raised floor
5 systems; peripheral components or systems; software;
6 mechanical, electrical, or plumbing systems; battery
7 systems; cooling systems and towers; temperature control
8 systems; other cabling; and other data center
9 infrastructure equipment and systems necessary to operate
10 qualified tangible personal property, including fixtures;
11 and component parts of any of the foregoing, including
12 installation, maintenance, repair, refurbishment, and
13 replacement of qualified tangible personal property to
14 generate, transform, transmit, distribute, or manage
15 electricity necessary to operate qualified tangible
16 personal property; and all other tangible personal
17 property that is essential to the operations of a computer
18 data center. The term "qualified tangible personal
19 property" also includes building materials physically
20 incorporated in to the qualifying data center. To document
21 the exemption allowed under this Section, the retailer
22 must obtain from the purchaser a copy of the certificate
23 of eligibility issued by the Department of Commerce and
24 Economic Opportunity.
25 This item (31) is exempt from the provisions of Section
263-75.

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1 (32) Beginning July 1, 2022, breast pumps, breast pump
2collection and storage supplies, and breast pump kits. This
3item (32) is exempt from the provisions of Section 3-75. As
4used in this item (32):
5 "Breast pump" means an electrically controlled or
6 manually controlled pump device designed or marketed to be
7 used to express milk from a human breast during lactation,
8 including the pump device and any battery, AC adapter, or
9 other power supply unit that is used to power the pump
10 device and is packaged and sold with the pump device at the
11 time of sale.
12 "Breast pump collection and storage supplies" means
13 items of tangible personal property designed or marketed
14 to be used in conjunction with a breast pump to collect
15 milk expressed from a human breast and to store collected
16 milk until it is ready for consumption.
17 "Breast pump collection and storage supplies"
18 includes, but is not limited to: breast shields and breast
19 shield connectors; breast pump tubes and tubing adapters;
20 breast pump valves and membranes; backflow protectors and
21 backflow protector adaptors; bottles and bottle caps
22 specific to the operation of the breast pump; and breast
23 milk storage bags.
24 "Breast pump collection and storage supplies" does not
25 include: (1) bottles and bottle caps not specific to the
26 operation of the breast pump; (2) breast pump travel bags

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1 and other similar carrying accessories, including ice
2 packs, labels, and other similar products; (3) breast pump
3 cleaning supplies; (4) nursing bras, bra pads, breast
4 shells, and other similar products; and (5) creams,
5 ointments, and other similar products that relieve
6 breastfeeding-related symptoms or conditions of the
7 breasts or nipples, unless sold as part of a breast pump
8 kit that is pre-packaged by the breast pump manufacturer
9 or distributor.
10 "Breast pump kit" means a kit that: (1) contains no
11 more than a breast pump, breast pump collection and
12 storage supplies, a rechargeable battery for operating the
13 breast pump, a breastmilk cooler, bottle stands, ice
14 packs, and a breast pump carrying case; and (2) is
15 pre-packaged as a breast pump kit by the breast pump
16 manufacturer or distributor.
17 (33) (32) Tangible personal property sold by or on behalf
18of the State Treasurer pursuant to the Revised Uniform
19Unclaimed Property Act. This item (33) (32) is exempt from the
20provisions of Section 3-75.
21 (34) Qualified tangible personal property used in the
22construction or operation of a megaproject for which a
23certificate has been issued by the Department of Revenue as
24described and defined in Division 22 of Article 10 of the
25Property Tax Code, whether that tangible personal property is
26purchased by the owner, operator, or tenant of the megaproject

HB5015- 44 -LRB103 33725 HLH 63537 b
1or by a contractor or subcontractor of the owner, operator, or
2tenant.
3 For the purposes of this item (34):
4 "Facility" means a building or series of buildings.
5 "Megaproject" means a facility that is rehabilitated or
6constructed as described in Division 22 of Article 10 of the
7Property Tax Code.
8 "Qualified tangible personal property" means: electrical
9systems and equipment; climate control and chilling equipment
10and systems; mechanical systems and equipment; monitoring and
11secure systems; emergency generators; hardware; computers;
12servers; data storage devices; network connectivity equipment;
13racks; cabinets; telecommunications cabling infrastructure;
14raised floor systems; peripheral components or systems;
15software; mechanical, electrical, or plumbing systems; battery
16systems; cooling systems and towers; temperature control
17systems; other cabling; and other data center infrastructure
18equipment and systems necessary to operate qualified tangible
19personal property, including fixtures; and component parts of
20any of the foregoing, including installation, maintenance,
21repair, refurbishment, and replacement of qualified tangible
22personal property to generate, transform, transmit,
23distribute, or manage electricity necessary to operate
24qualified tangible personal property; and all other tangible
25personal property that is essential to the operations of a
26megaproject. The term "qualified tangible personal property"

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1also includes building materials to be incorporated into the
2megaproject. To document the exemption allowed under this
3Section, the retailer, contractor or subcontractor or supplier
4must obtain from the purchaser a copy of the certificate
5issued by the Department of Revenue for the megaproject as
6described and defined in Division 22 of Article 10 of the
7Property Tax Code.
8 This item (34) is exempt from the provisions of Section
93-75.
10(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
11101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
1270, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1375-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
14 Section 15. The Service Occupation Tax Act is amended by
15changing Section 3-5 as follows:
16 (35 ILCS 115/3-5)
17 Sec. 3-5. Exemptions. The following tangible personal
18property is exempt from the tax imposed by this Act:
19 (1) Personal property sold by a corporation, society,
20association, foundation, institution, or organization, other
21than a limited liability company, that is organized and
22operated as a not-for-profit service enterprise for the
23benefit of persons 65 years of age or older if the personal
24property was not purchased by the enterprise for the purpose

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1of resale by the enterprise.
2 (2) Personal property purchased by a not-for-profit
3Illinois county fair association for use in conducting,
4operating, or promoting the county fair.
5 (3) Personal property purchased by any not-for-profit arts
6or cultural organization that establishes, by proof required
7by the Department by rule, that it has received an exemption
8under Section 501(c)(3) of the Internal Revenue Code and that
9is organized and operated primarily for the presentation or
10support of arts or cultural programming, activities, or
11services. These organizations include, but are not limited to,
12music and dramatic arts organizations such as symphony
13orchestras and theatrical groups, arts and cultural service
14organizations, local arts councils, visual arts organizations,
15and media arts organizations. On and after July 1, 2001 (the
16effective date of Public Act 92-35), however, an entity
17otherwise eligible for this exemption shall not make tax-free
18purchases unless it has an active identification number issued
19by the Department.
20 (4) Legal tender, currency, medallions, or gold or silver
21coinage issued by the State of Illinois, the government of the
22United States of America, or the government of any foreign
23country, and bullion.
24 (5) Until July 1, 2003 and beginning again on September 1,
252004 through August 30, 2014, graphic arts machinery and
26equipment, including repair and replacement parts, both new

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

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1equipment under this item (7). Agricultural chemical tender
2tanks and dry boxes shall include units sold separately from a
3motor vehicle required to be licensed and units sold mounted
4on a motor vehicle required to be licensed if the selling price
5of the tender is separately stated.
6 Farm machinery and equipment shall include precision
7farming equipment that is installed or purchased to be
8installed on farm machinery and equipment including, but not
9limited to, tractors, harvesters, sprayers, planters, seeders,
10or spreaders. Precision farming equipment includes, but is not
11limited to, soil testing sensors, computers, monitors,
12software, global positioning and mapping systems, and other
13such equipment.
14 Farm machinery and equipment also includes computers,
15sensors, software, and related equipment used primarily in the
16computer-assisted operation of production agriculture
17facilities, equipment, and activities such as, but not limited
18to, the collection, monitoring, and correlation of animal and
19crop data for the purpose of formulating animal diets and
20agricultural chemicals. This item (7) is exempt from the
21provisions of Section 3-55.
22 (8) Until June 30, 2013, fuel and petroleum products sold
23to or used by an air common carrier, certified by the carrier
24to be used for consumption, shipment, or storage in the
25conduct of its business as an air common carrier, for a flight
26destined for or returning from a location or locations outside

HB5015- 49 -LRB103 33725 HLH 63537 b
1the United States without regard to previous or subsequent
2domestic stopovers.
3 Beginning July 1, 2013, fuel and petroleum products sold
4to or used by an air carrier, certified by the carrier to be
5used for consumption, shipment, or storage in the conduct of
6its business as an air common carrier, for a flight that (i) is
7engaged in foreign trade or is engaged in trade between the
8United States and any of its possessions and (ii) transports
9at least one individual or package for hire from the city of
10origination to the city of final destination on the same
11aircraft, without regard to a change in the flight number of
12that aircraft.
13 (9) Proceeds of mandatory service charges separately
14stated on customers' bills for the purchase and consumption of
15food and beverages, to the extent that the proceeds of the
16service charge are in fact turned over as tips or as a
17substitute for tips to the employees who participate directly
18in preparing, serving, hosting or cleaning up the food or
19beverage function with respect to which the service charge is
20imposed.
21 (10) Until July 1, 2003, oil field exploration, drilling,
22and production equipment, including (i) rigs and parts of
23rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
24pipe and tubular goods, including casing and drill strings,
25(iii) pumps and pump-jack units, (iv) storage tanks and flow
26lines, (v) any individual replacement part for oil field

HB5015- 50 -LRB103 33725 HLH 63537 b
1exploration, drilling, and production equipment, and (vi)
2machinery and equipment purchased for lease; but excluding
3motor vehicles required to be registered under the Illinois
4Vehicle Code.
5 (11) Photoprocessing machinery and equipment, including
6repair and replacement parts, both new and used, including
7that manufactured on special order, certified by the purchaser
8to be used primarily for photoprocessing, and including
9photoprocessing machinery and equipment purchased for lease.
10 (12) Until July 1, 2028, coal and aggregate exploration,
11mining, off-highway hauling, processing, maintenance, and
12reclamation equipment, including replacement parts and
13equipment, and including equipment purchased for lease, but
14excluding motor vehicles required to be registered under the
15Illinois Vehicle Code. The changes made to this Section by
16Public Act 97-767 apply on and after July 1, 2003, but no claim
17for credit or refund is allowed on or after August 16, 2013
18(the effective date of Public Act 98-456) for such taxes paid
19during the period beginning July 1, 2003 and ending on August
2016, 2013 (the effective date of Public Act 98-456).
21 (13) Beginning January 1, 1992 and through June 30, 2016,
22food for human consumption that is to be consumed off the
23premises where it is sold (other than alcoholic beverages,
24soft drinks and food that has been prepared for immediate
25consumption) and prescription and non-prescription medicines,
26drugs, medical appliances, and insulin, urine testing

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1materials, syringes, and needles used by diabetics, for human
2use, when purchased for use by a person receiving medical
3assistance under Article V of the Illinois Public Aid Code who
4resides in a licensed long-term care facility, as defined in
5the Nursing Home Care Act, or in a licensed facility as defined
6in the ID/DD Community Care Act, the MC/DD Act, or the
7Specialized Mental Health Rehabilitation Act of 2013.
8 (14) Semen used for artificial insemination of livestock
9for direct agricultural production.
10 (15) Horses, or interests in horses, registered with and
11meeting the requirements of any of the Arabian Horse Club
12Registry of America, Appaloosa Horse Club, American Quarter
13Horse Association, United States Trotting Association, or
14Jockey Club, as appropriate, used for purposes of breeding or
15racing for prizes. This item (15) is exempt from the
16provisions of Section 3-55, and the exemption provided for
17under this item (15) applies for all periods beginning May 30,
181995, but no claim for credit or refund is allowed on or after
19January 1, 2008 (the effective date of Public Act 95-88) for
20such taxes paid during the period beginning May 30, 2000 and
21ending on January 1, 2008 (the effective date of Public Act
2295-88).
23 (16) Computers and communications equipment utilized for
24any hospital purpose and equipment used in the diagnosis,
25analysis, or treatment of hospital patients sold to a lessor
26who leases the equipment, under a lease of one year or longer

HB5015- 52 -LRB103 33725 HLH 63537 b
1executed or in effect at the time of the purchase, to a
2hospital that has been issued an active tax exemption
3identification number by the Department under Section 1g of
4the Retailers' Occupation Tax Act.
5 (17) Personal property sold to a lessor who leases the
6property, under a lease of one year or longer executed or in
7effect at the time of the purchase, to a governmental body that
8has been issued an active tax exemption identification number
9by the Department under Section 1g of the Retailers'
10Occupation Tax Act.
11 (18) Beginning with taxable years ending on or after
12December 31, 1995 and ending with taxable years ending on or
13before December 31, 2004, personal property that is donated
14for disaster relief to be used in a State or federally declared
15disaster area in Illinois or bordering Illinois by a
16manufacturer or retailer that is registered in this State to a
17corporation, society, association, foundation, or institution
18that has been issued a sales tax exemption identification
19number by the Department that assists victims of the disaster
20who reside within the declared disaster area.
21 (19) Beginning with taxable years ending on or after
22December 31, 1995 and ending with taxable years ending on or
23before December 31, 2004, personal property that is used in
24the performance of infrastructure repairs in this State,
25including but not limited to municipal roads and streets,
26access roads, bridges, sidewalks, waste disposal systems,

HB5015- 53 -LRB103 33725 HLH 63537 b
1water and sewer line extensions, water distribution and
2purification facilities, storm water drainage and retention
3facilities, and sewage treatment facilities, resulting from a
4State or federally declared disaster in Illinois or bordering
5Illinois when such repairs are initiated on facilities located
6in the declared disaster area within 6 months after the
7disaster.
8 (20) Beginning July 1, 1999, game or game birds sold at a
9"game breeding and hunting preserve area" as that term is used
10in the Wildlife Code. This paragraph is exempt from the
11provisions of Section 3-55.
12 (21) A motor vehicle, as that term is defined in Section
131-146 of the Illinois Vehicle Code, that is donated to a
14corporation, limited liability company, society, association,
15foundation, or institution that is determined by the
16Department to be organized and operated exclusively for
17educational purposes. For purposes of this exemption, "a
18corporation, limited liability company, society, association,
19foundation, or institution organized and operated exclusively
20for educational purposes" means all tax-supported public
21schools, private schools that offer systematic instruction in
22useful branches of learning by methods common to public
23schools and that compare favorably in their scope and
24intensity with the course of study presented in tax-supported
25schools, and vocational or technical schools or institutes
26organized and operated exclusively to provide a course of

HB5015- 54 -LRB103 33725 HLH 63537 b
1study of not less than 6 weeks duration and designed to prepare
2individuals to follow a trade or to pursue a manual,
3technical, mechanical, industrial, business, or commercial
4occupation.
5 (22) Beginning January 1, 2000, personal property,
6including food, purchased through fundraising events for the
7benefit of a public or private elementary or secondary school,
8a group of those schools, or one or more school districts if
9the events are sponsored by an entity recognized by the school
10district that consists primarily of volunteers and includes
11parents and teachers of the school children. This paragraph
12does not apply to fundraising events (i) for the benefit of
13private home instruction or (ii) for which the fundraising
14entity purchases the personal property sold at the events from
15another individual or entity that sold the property for the
16purpose of resale by the fundraising entity and that profits
17from the sale to the fundraising entity. This paragraph is
18exempt from the provisions of Section 3-55.
19 (23) Beginning January 1, 2000 and through December 31,
202001, new or used automatic vending machines that prepare and
21serve hot food and beverages, including coffee, soup, and
22other items, and replacement parts for these machines.
23Beginning January 1, 2002 and through June 30, 2003, machines
24and parts for machines used in commercial, coin-operated
25amusement and vending business if a use or occupation tax is
26paid on the gross receipts derived from the use of the

HB5015- 55 -LRB103 33725 HLH 63537 b
1commercial, coin-operated amusement and vending machines. This
2paragraph is exempt from the provisions of Section 3-55.
3 (24) Beginning on August 2, 2001 (the effective date of
4Public Act 92-227), computers and communications equipment
5utilized for any hospital purpose and equipment used in the
6diagnosis, analysis, or treatment of hospital patients sold to
7a lessor who leases the equipment, under a lease of one year or
8longer executed or in effect at the time of the purchase, to a
9hospital that has been issued an active tax exemption
10identification number by the Department under Section 1g of
11the Retailers' Occupation Tax Act. This paragraph is exempt
12from the provisions of Section 3-55.
13 (25) Beginning on August 2, 2001 (the effective date of
14Public Act 92-227), personal property sold to a lessor who
15leases the property, under a lease of one year or longer
16executed or in effect at the time of the purchase, to a
17governmental body that has been issued an active tax exemption
18identification number by the Department under Section 1g of
19the Retailers' Occupation Tax Act. This paragraph is exempt
20from the provisions of Section 3-55.
21 (26) Beginning on January 1, 2002 and through June 30,
222016, tangible personal property purchased from an Illinois
23retailer by a taxpayer engaged in centralized purchasing
24activities in Illinois who will, upon receipt of the property
25in Illinois, temporarily store the property in Illinois (i)
26for the purpose of subsequently transporting it outside this

HB5015- 56 -LRB103 33725 HLH 63537 b
1State for use or consumption thereafter solely outside this
2State or (ii) for the purpose of being processed, fabricated,
3or manufactured into, attached to, or incorporated into other
4tangible personal property to be transported outside this
5State and thereafter used or consumed solely outside this
6State. The Director of Revenue shall, pursuant to rules
7adopted in accordance with the Illinois Administrative
8Procedure Act, issue a permit to any taxpayer in good standing
9with the Department who is eligible for the exemption under
10this paragraph (26). The permit issued under this paragraph
11(26) shall authorize the holder, to the extent and in the
12manner specified in the rules adopted under this Act, to
13purchase tangible personal property from a retailer exempt
14from the taxes imposed by this Act. Taxpayers shall maintain
15all necessary books and records to substantiate the use and
16consumption of all such tangible personal property outside of
17the State of Illinois.
18 (27) Beginning January 1, 2008, tangible personal property
19used in the construction or maintenance of a community water
20supply, as defined under Section 3.145 of the Environmental
21Protection Act, that is operated by a not-for-profit
22corporation that holds a valid water supply permit issued
23under Title IV of the Environmental Protection Act. This
24paragraph is exempt from the provisions of Section 3-55.
25 (28) Tangible personal property sold to a
26public-facilities corporation, as described in Section

HB5015- 57 -LRB103 33725 HLH 63537 b
111-65-10 of the Illinois Municipal Code, for purposes of
2constructing or furnishing a municipal convention hall, but
3only if the legal title to the municipal convention hall is
4transferred to the municipality without any further
5consideration by or on behalf of the municipality at the time
6of the completion of the municipal convention hall or upon the
7retirement or redemption of any bonds or other debt
8instruments issued by the public-facilities corporation in
9connection with the development of the municipal convention
10hall. This exemption includes existing public-facilities
11corporations as provided in Section 11-65-25 of the Illinois
12Municipal Code. This paragraph is exempt from the provisions
13of Section 3-55.
14 (29) Beginning January 1, 2010 and continuing through
15December 31, 2024, materials, parts, equipment, components,
16and furnishings incorporated into or upon an aircraft as part
17of the modification, refurbishment, completion, replacement,
18repair, or maintenance of the aircraft. This exemption
19includes consumable supplies used in the modification,
20refurbishment, completion, replacement, repair, and
21maintenance of aircraft, but excludes any materials, parts,
22equipment, components, and consumable supplies used in the
23modification, replacement, repair, and maintenance of aircraft
24engines or power plants, whether such engines or power plants
25are installed or uninstalled upon any such aircraft.
26"Consumable supplies" include, but are not limited to,

HB5015- 58 -LRB103 33725 HLH 63537 b
1adhesive, tape, sandpaper, general purpose lubricants,
2cleaning solution, latex gloves, and protective films. This
3exemption applies only to the transfer of qualifying tangible
4personal property incident to the modification, refurbishment,
5completion, replacement, repair, or maintenance of an aircraft
6by persons who (i) hold an Air Agency Certificate and are
7empowered to operate an approved repair station by the Federal
8Aviation Administration, (ii) have a Class IV Rating, and
9(iii) conduct operations in accordance with Part 145 of the
10Federal Aviation Regulations. The exemption does not include
11aircraft operated by a commercial air carrier providing
12scheduled passenger air service pursuant to authority issued
13under Part 121 or Part 129 of the Federal Aviation
14Regulations. The changes made to this paragraph (29) by Public
15Act 98-534 are declarative of existing law. It is the intent of
16the General Assembly that the exemption under this paragraph
17(29) applies continuously from January 1, 2010 through
18December 31, 2024; however, no claim for credit or refund is
19allowed for taxes paid as a result of the disallowance of this
20exemption on or after January 1, 2015 and prior to February 5,
212020 (the effective date of Public Act 101-629) this
22amendatory Act of the 101st General Assembly.
23 (30) Beginning January 1, 2017 and through December 31,
242026, menstrual pads, tampons, and menstrual cups.
25 (31) Tangible personal property transferred to a purchaser
26who is exempt from tax by operation of federal law. This

HB5015- 59 -LRB103 33725 HLH 63537 b
1paragraph is exempt from the provisions of Section 3-55.
2 (32) Qualified tangible personal property used in the
3construction or operation of a data center that has been
4granted a certificate of exemption by the Department of
5Commerce and Economic Opportunity, whether that tangible
6personal property is purchased by the owner, operator, or
7tenant of the data center or by a contractor or subcontractor
8of the owner, operator, or tenant. Data centers that would
9have qualified for a certificate of exemption prior to January
101, 2020 had Public Act 101-31 this amendatory Act of the 101st
11General Assembly been in effect, may apply for and obtain an
12exemption for subsequent purchases of computer equipment or
13enabling software purchased or leased to upgrade, supplement,
14or replace computer equipment or enabling software purchased
15or leased in the original investment that would have
16qualified.
17 The Department of Commerce and Economic Opportunity shall
18grant a certificate of exemption under this item (32) to
19qualified data centers as defined by Section 605-1025 of the
20Department of Commerce and Economic Opportunity Law of the
21Civil Administrative Code of Illinois.
22 For the purposes of this item (32):
23 "Data center" means a building or a series of
24 buildings rehabilitated or constructed to house working
25 servers in one physical location or multiple sites within
26 the State of Illinois.

HB5015- 60 -LRB103 33725 HLH 63537 b
1 "Qualified tangible personal property" means:
2 electrical systems and equipment; climate control and
3 chilling equipment and systems; mechanical systems and
4 equipment; monitoring and secure systems; emergency
5 generators; hardware; computers; servers; data storage
6 devices; network connectivity equipment; racks; cabinets;
7 telecommunications cabling infrastructure; raised floor
8 systems; peripheral components or systems; software;
9 mechanical, electrical, or plumbing systems; battery
10 systems; cooling systems and towers; temperature control
11 systems; other cabling; and other data center
12 infrastructure equipment and systems necessary to operate
13 qualified tangible personal property, including fixtures;
14 and component parts of any of the foregoing, including
15 installation, maintenance, repair, refurbishment, and
16 replacement of qualified tangible personal property to
17 generate, transform, transmit, distribute, or manage
18 electricity necessary to operate qualified tangible
19 personal property; and all other tangible personal
20 property that is essential to the operations of a computer
21 data center. The term "qualified tangible personal
22 property" also includes building materials physically
23 incorporated in to the qualifying data center. To document
24 the exemption allowed under this Section, the retailer
25 must obtain from the purchaser a copy of the certificate
26 of eligibility issued by the Department of Commerce and

HB5015- 61 -LRB103 33725 HLH 63537 b
1 Economic Opportunity.
2 This item (32) is exempt from the provisions of Section
33-55.
4 (33) Beginning July 1, 2022, breast pumps, breast pump
5collection and storage supplies, and breast pump kits. This
6item (33) is exempt from the provisions of Section 3-55. As
7used in this item (33):
8 "Breast pump" means an electrically controlled or
9 manually controlled pump device designed or marketed to be
10 used to express milk from a human breast during lactation,
11 including the pump device and any battery, AC adapter, or
12 other power supply unit that is used to power the pump
13 device and is packaged and sold with the pump device at the
14 time of sale.
15 "Breast pump collection and storage supplies" means
16 items of tangible personal property designed or marketed
17 to be used in conjunction with a breast pump to collect
18 milk expressed from a human breast and to store collected
19 milk until it is ready for consumption.
20 "Breast pump collection and storage supplies"
21 includes, but is not limited to: breast shields and breast
22 shield connectors; breast pump tubes and tubing adapters;
23 breast pump valves and membranes; backflow protectors and
24 backflow protector adaptors; bottles and bottle caps
25 specific to the operation of the breast pump; and breast
26 milk storage bags.

HB5015- 62 -LRB103 33725 HLH 63537 b
1 "Breast pump collection and storage supplies" does not
2 include: (1) bottles and bottle caps not specific to the
3 operation of the breast pump; (2) breast pump travel bags
4 and other similar carrying accessories, including ice
5 packs, labels, and other similar products; (3) breast pump
6 cleaning supplies; (4) nursing bras, bra pads, breast
7 shells, and other similar products; and (5) creams,
8 ointments, and other similar products that relieve
9 breastfeeding-related symptoms or conditions of the
10 breasts or nipples, unless sold as part of a breast pump
11 kit that is pre-packaged by the breast pump manufacturer
12 or distributor.
13 "Breast pump kit" means a kit that: (1) contains no
14 more than a breast pump, breast pump collection and
15 storage supplies, a rechargeable battery for operating the
16 breast pump, a breastmilk cooler, bottle stands, ice
17 packs, and a breast pump carrying case; and (2) is
18 pre-packaged as a breast pump kit by the breast pump
19 manufacturer or distributor.
20 (34) (33) Tangible personal property sold by or on behalf
21of the State Treasurer pursuant to the Revised Uniform
22Unclaimed Property Act. This item (34) (33) is exempt from the
23provisions of Section 3-55.
24 (35) Qualified tangible personal property used in the
25construction or operation of a megaproject for which a
26certificate has been issued by the Department of Revenue as

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1described and defined in Division 22 of Article 10 of the
2Property Tax Code, whether that tangible personal property is
3purchased by the owner, operator, or tenant of the megaproject
4or by a contractor or subcontractor of the owner, operator, or
5tenant.
6 For the purposes of this item (35):
7 "Facility" means a building or series of buildings.
8 "Megaproject" means a facility that is rehabilitated or
9constructed as described in Division 22 of Article 10 of the
10Property Tax Code.
11 "Qualified tangible personal property" means: electrical
12systems and equipment; climate control and chilling equipment
13and systems; mechanical systems and equipment; monitoring and
14secure systems; emergency generators; hardware; computers;
15servers; data storage devices; network connectivity equipment;
16racks; cabinets; telecommunications cabling infrastructure;
17raised floor systems; peripheral components or systems;
18software; mechanical, electrical, or plumbing systems; battery
19systems; cooling systems and towers; temperature control
20systems; other cabling; and other data center infrastructure
21equipment and systems necessary to operate qualified tangible
22personal property, including fixtures; and component parts of
23any of the foregoing, including installation, maintenance,
24repair, refurbishment, and replacement of qualified tangible
25personal property to generate, transform, transmit,
26distribute, or manage electricity necessary to operate

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1qualified tangible personal property; and all other tangible
2personal property that is essential to the operations of a
3megaproject. The term "qualified tangible personal property"
4also includes building materials to be incorporated into the
5megaproject. To document the exemption allowed under this
6Section, the retailer, contractor or subcontractor or supplier
7must obtain from the purchaser a copy of the certificate
8issued by the Department of Revenue for the megaproject as
9described and defined in Division 22 of Article 10 of the
10Property Tax Code.
11 This item (35) is exempt from the provisions of Section
123-55.
13(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
14101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
1570, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
1675-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
17 Section 20. The Retailers' Occupation Tax Act is amended
18by changing Section 2-5 as follows:
19 (35 ILCS 120/2-5)
20 Sec. 2-5. Exemptions. Gross receipts from proceeds from
21the sale of the following tangible personal property are
22exempt from the tax imposed by this Act:
23 (1) Farm chemicals.
24 (2) Farm machinery and equipment, both new and used,

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

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1 computers, monitors, software, global positioning and
2 mapping systems, and other such equipment.
3 Farm machinery and equipment also includes computers,
4 sensors, software, and related equipment used primarily in
5 the computer-assisted operation of production agriculture
6 facilities, equipment, and activities such as, but not
7 limited to, the collection, monitoring, and correlation of
8 animal and crop data for the purpose of formulating animal
9 diets and agricultural chemicals. This item (2) is exempt
10 from the provisions of Section 2-70.
11 (3) Until July 1, 2003, distillation machinery and
12 equipment, sold as a unit or kit, assembled or installed
13 by the retailer, certified by the user to be used only for
14 the production of ethyl alcohol that will be used for
15 consumption as motor fuel or as a component of motor fuel
16 for the personal use of the user, and not subject to sale
17 or resale.
18 (4) Until July 1, 2003 and beginning again September
19 1, 2004 through August 30, 2014, graphic arts machinery
20 and equipment, including repair and replacement parts,
21 both new and used, and including that manufactured on
22 special order or purchased for lease, certified by the
23 purchaser to be used primarily for graphic arts
24 production. Equipment includes chemicals or chemicals
25 acting as catalysts but only if the chemicals or chemicals
26 acting as catalysts effect a direct and immediate change

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1 upon a graphic arts product. Beginning on July 1, 2017,
2 graphic arts machinery and equipment is included in the
3 manufacturing and assembling machinery and equipment
4 exemption under paragraph (14).
5 (5) A motor vehicle that is used for automobile
6 renting, as defined in the Automobile Renting Occupation
7 and Use Tax Act. This paragraph is exempt from the
8 provisions of Section 2-70.
9 (6) Personal property sold by a teacher-sponsored
10 student organization affiliated with an elementary or
11 secondary school located in Illinois.
12 (7) Until July 1, 2003, proceeds of that portion of
13 the selling price of a passenger car the sale of which is
14 subject to the Replacement Vehicle Tax.
15 (8) Personal property sold to an Illinois county fair
16 association for use in conducting, operating, or promoting
17 the county fair.
18 (9) Personal property sold to a not-for-profit arts or
19 cultural organization that establishes, by proof required
20 by the Department by rule, that it has received an
21 exemption under Section 501(c)(3) of the Internal Revenue
22 Code and that is organized and operated primarily for the
23 presentation or support of arts or cultural programming,
24 activities, or services. These organizations include, but
25 are not limited to, music and dramatic arts organizations
26 such as symphony orchestras and theatrical groups, arts

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1 and cultural service organizations, local arts councils,
2 visual arts organizations, and media arts organizations.
3 On and after July 1, 2001 (the effective date of Public Act
4 92-35), however, an entity otherwise eligible for this
5 exemption shall not make tax-free purchases unless it has
6 an active identification number issued by the Department.
7 (10) Personal property sold by a corporation, society,
8 association, foundation, institution, or organization,
9 other than a limited liability company, that is organized
10 and operated as a not-for-profit service enterprise for
11 the benefit of persons 65 years of age or older if the
12 personal property was not purchased by the enterprise for
13 the purpose of resale by the enterprise.
14 (11) Personal property sold to a governmental body, to
15 a corporation, society, association, foundation, or
16 institution organized and operated exclusively for
17 charitable, religious, or educational purposes, or to a
18 not-for-profit corporation, society, association,
19 foundation, institution, or organization that has no
20 compensated officers or employees and that is organized
21 and operated primarily for the recreation of persons 55
22 years of age or older. A limited liability company may
23 qualify for the exemption under this paragraph only if the
24 limited liability company is organized and operated
25 exclusively for educational purposes. On and after July 1,
26 1987, however, no entity otherwise eligible for this

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1 exemption shall make tax-free purchases unless it has an
2 active identification number issued by the Department.
3 (12) (Blank).
4 (12-5) On and after July 1, 2003 and through June 30,
5 2004, motor vehicles of the second division with a gross
6 vehicle weight in excess of 8,000 pounds that are subject
7 to the commercial distribution fee imposed under Section
8 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
9 2004 and through June 30, 2005, the use in this State of
10 motor vehicles of the second division: (i) with a gross
11 vehicle weight rating in excess of 8,000 pounds; (ii) that
12 are subject to the commercial distribution fee imposed
13 under Section 3-815.1 of the Illinois Vehicle Code; and
14 (iii) that are primarily used for commercial purposes.
15 Through June 30, 2005, this exemption applies to repair
16 and replacement parts added after the initial purchase of
17 such a motor vehicle if that motor vehicle is used in a
18 manner that would qualify for the rolling stock exemption
19 otherwise provided for in this Act. For purposes of this
20 paragraph, "used for commercial purposes" means the
21 transportation of persons or property in furtherance of
22 any commercial or industrial enterprise whether for-hire
23 or not.
24 (13) Proceeds from sales to owners, lessors, or
25 shippers of tangible personal property that is utilized by
26 interstate carriers for hire for use as rolling stock

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1 moving in interstate commerce and equipment operated by a
2 telecommunications provider, licensed as a common carrier
3 by the Federal Communications Commission, which is
4 permanently installed in or affixed to aircraft moving in
5 interstate commerce.
6 (14) Machinery and equipment that will be used by the
7 purchaser, or a lessee of the purchaser, primarily in the
8 process of manufacturing or assembling tangible personal
9 property for wholesale or retail sale or lease, whether
10 the sale or lease is made directly by the manufacturer or
11 by some other person, whether the materials used in the
12 process are owned by the manufacturer or some other
13 person, or whether the sale or lease is made apart from or
14 as an incident to the seller's engaging in the service
15 occupation of producing machines, tools, dies, jigs,
16 patterns, gauges, or other similar items of no commercial
17 value on special order for a particular purchaser. The
18 exemption provided by this paragraph (14) does not include
19 machinery and equipment used in (i) the generation of
20 electricity for wholesale or retail sale; (ii) the
21 generation or treatment of natural or artificial gas for
22 wholesale or retail sale that is delivered to customers
23 through pipes, pipelines, or mains; or (iii) the treatment
24 of water for wholesale or retail sale that is delivered to
25 customers through pipes, pipelines, or mains. The
26 provisions of Public Act 98-583 are declaratory of

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1 existing law as to the meaning and scope of this
2 exemption. Beginning on July 1, 2017, the exemption
3 provided by this paragraph (14) includes, but is not
4 limited to, graphic arts machinery and equipment, as
5 defined in paragraph (4) of this Section.
6 (15) Proceeds of mandatory service charges separately
7 stated on customers' bills for purchase and consumption of
8 food and beverages, to the extent that the proceeds of the
9 service charge are in fact turned over as tips or as a
10 substitute for tips to the employees who participate
11 directly in preparing, serving, hosting or cleaning up the
12 food or beverage function with respect to which the
13 service charge is imposed.
14 (16) Tangible personal property sold to a purchaser if
15 the purchaser is exempt from use tax by operation of
16 federal law. This paragraph is exempt from the provisions
17 of Section 2-70.
18 (17) Tangible personal property sold to a common
19 carrier by rail or motor that receives the physical
20 possession of the property in Illinois and that transports
21 the property, or shares with another common carrier in the
22 transportation of the property, out of Illinois on a
23 standard uniform bill of lading showing the seller of the
24 property as the shipper or consignor of the property to a
25 destination outside Illinois, for use outside Illinois.
26 (18) Legal tender, currency, medallions, or gold or

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1 silver coinage issued by the State of Illinois, the
2 government of the United States of America, or the
3 government of any foreign country, and bullion.
4 (19) Until July 1, 2003, oil field exploration,
5 drilling, and production equipment, including (i) rigs and
6 parts of rigs, rotary rigs, cable tool rigs, and workover
7 rigs, (ii) pipe and tubular goods, including casing and
8 drill strings, (iii) pumps and pump-jack units, (iv)
9 storage tanks and flow lines, (v) any individual
10 replacement part for oil field exploration, drilling, and
11 production equipment, and (vi) machinery and equipment
12 purchased for lease; but excluding motor vehicles required
13 to be registered under the Illinois Vehicle Code.
14 (20) Photoprocessing machinery and equipment,
15 including repair and replacement parts, both new and used,
16 including that manufactured on special order, certified by
17 the purchaser to be used primarily for photoprocessing,
18 and including photoprocessing machinery and equipment
19 purchased for lease.
20 (21) Until July 1, 2028, coal and aggregate
21 exploration, mining, off-highway hauling, processing,
22 maintenance, and reclamation equipment, including
23 replacement parts and equipment, and including equipment
24 purchased for lease, but excluding motor vehicles required
25 to be registered under the Illinois Vehicle Code. The
26 changes made to this Section by Public Act 97-767 apply on

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1 and after July 1, 2003, but no claim for credit or refund
2 is allowed on or after August 16, 2013 (the effective date
3 of Public Act 98-456) for such taxes paid during the
4 period beginning July 1, 2003 and ending on August 16,
5 2013 (the effective date of Public Act 98-456).
6 (22) Until June 30, 2013, fuel and petroleum products
7 sold to or used by an air carrier, certified by the carrier
8 to be used for consumption, shipment, or storage in the
9 conduct of its business as an air common carrier, for a
10 flight destined for or returning from a location or
11 locations outside the United States without regard to
12 previous or subsequent domestic stopovers.
13 Beginning July 1, 2013, fuel and petroleum products
14 sold to or used by an air carrier, certified by the carrier
15 to be used for consumption, shipment, or storage in the
16 conduct of its business as an air common carrier, for a
17 flight that (i) is engaged in foreign trade or is engaged
18 in trade between the United States and any of its
19 possessions and (ii) transports at least one individual or
20 package for hire from the city of origination to the city
21 of final destination on the same aircraft, without regard
22 to a change in the flight number of that aircraft.
23 (23) A transaction in which the purchase order is
24 received by a florist who is located outside Illinois, but
25 who has a florist located in Illinois deliver the property
26 to the purchaser or the purchaser's donee in Illinois.

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1 (24) Fuel consumed or used in the operation of ships,
2 barges, or vessels that are used primarily in or for the
3 transportation of property or the conveyance of persons
4 for hire on rivers bordering on this State if the fuel is
5 delivered by the seller to the purchaser's barge, ship, or
6 vessel while it is afloat upon that bordering river.
7 (25) Except as provided in item (25-5) of this
8 Section, a motor vehicle sold in this State to a
9 nonresident even though the motor vehicle is delivered to
10 the nonresident in this State, if the motor vehicle is not
11 to be titled in this State, and if a drive-away permit is
12 issued to the motor vehicle as provided in Section 3-603
13 of the Illinois Vehicle Code or if the nonresident
14 purchaser has vehicle registration plates to transfer to
15 the motor vehicle upon returning to his or her home state.
16 The issuance of the drive-away permit or having the
17 out-of-state registration plates to be transferred is
18 prima facie evidence that the motor vehicle will not be
19 titled in this State.
20 (25-5) The exemption under item (25) does not apply if
21 the state in which the motor vehicle will be titled does
22 not allow a reciprocal exemption for a motor vehicle sold
23 and delivered in that state to an Illinois resident but
24 titled in Illinois. The tax collected under this Act on
25 the sale of a motor vehicle in this State to a resident of
26 another state that does not allow a reciprocal exemption

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1 shall be imposed at a rate equal to the state's rate of tax
2 on taxable property in the state in which the purchaser is
3 a resident, except that the tax shall not exceed the tax
4 that would otherwise be imposed under this Act. At the
5 time of the sale, the purchaser shall execute a statement,
6 signed under penalty of perjury, of his or her intent to
7 title the vehicle in the state in which the purchaser is a
8 resident within 30 days after the sale and of the fact of
9 the payment to the State of Illinois of tax in an amount
10 equivalent to the state's rate of tax on taxable property
11 in his or her state of residence and shall submit the
12 statement to the appropriate tax collection agency in his
13 or her state of residence. In addition, the retailer must
14 retain a signed copy of the statement in his or her
15 records. Nothing in this item shall be construed to
16 require the removal of the vehicle from this state
17 following the filing of an intent to title the vehicle in
18 the purchaser's state of residence if the purchaser titles
19 the vehicle in his or her state of residence within 30 days
20 after the date of sale. The tax collected under this Act in
21 accordance with this item (25-5) shall be proportionately
22 distributed as if the tax were collected at the 6.25%
23 general rate imposed under this Act.
24 (25-7) Beginning on July 1, 2007, no tax is imposed
25 under this Act on the sale of an aircraft, as defined in
26 Section 3 of the Illinois Aeronautics Act, if all of the

HB5015- 76 -LRB103 33725 HLH 63537 b
1 following conditions are met:
2 (1) the aircraft leaves this State within 15 days
3 after the later of either the issuance of the final
4 billing for the sale of the aircraft, or the
5 authorized approval for return to service, completion
6 of the maintenance record entry, and completion of the
7 test flight and ground test for inspection, as
8 required by 14 CFR C.F.R. 91.407;
9 (2) the aircraft is not based or registered in
10 this State after the sale of the aircraft; and
11 (3) the seller retains in his or her books and
12 records and provides to the Department a signed and
13 dated certification from the purchaser, on a form
14 prescribed by the Department, certifying that the
15 requirements of this item (25-7) are met. The
16 certificate must also include the name and address of
17 the purchaser, the address of the location where the
18 aircraft is to be titled or registered, the address of
19 the primary physical location of the aircraft, and
20 other information that the Department may reasonably
21 require.
22 For purposes of this item (25-7):
23 "Based in this State" means hangared, stored, or
24 otherwise used, excluding post-sale customizations as
25 defined in this Section, for 10 or more days in each
26 12-month period immediately following the date of the sale

HB5015- 77 -LRB103 33725 HLH 63537 b
1 of the aircraft.
2 "Registered in this State" means an aircraft
3 registered with the Department of Transportation,
4 Aeronautics Division, or titled or registered with the
5 Federal Aviation Administration to an address located in
6 this State.
7 This paragraph (25-7) is exempt from the provisions of
8 Section 2-70.
9 (26) Semen used for artificial insemination of
10 livestock for direct agricultural production.
11 (27) Horses, or interests in horses, registered with
12 and meeting the requirements of any of the Arabian Horse
13 Club Registry of America, Appaloosa Horse Club, American
14 Quarter Horse Association, United States Trotting
15 Association, or Jockey Club, as appropriate, used for
16 purposes of breeding or racing for prizes. This item (27)
17 is exempt from the provisions of Section 2-70, and the
18 exemption provided for under this item (27) applies for
19 all periods beginning May 30, 1995, but no claim for
20 credit or refund is allowed on or after January 1, 2008
21 (the effective date of Public Act 95-88) for such taxes
22 paid during the period beginning May 30, 2000 and ending
23 on January 1, 2008 (the effective date of Public Act
24 95-88).
25 (28) Computers and communications equipment utilized
26 for any hospital purpose and equipment used in the

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1 diagnosis, analysis, or treatment of hospital patients
2 sold to a lessor who leases the equipment, under a lease of
3 one year or longer executed or in effect at the time of the
4 purchase, to a hospital that has been issued an active tax
5 exemption identification number by the Department under
6 Section 1g of this Act.
7 (29) Personal property sold to a lessor who leases the
8 property, under a lease of one year or longer executed or
9 in effect at the time of the purchase, to a governmental
10 body that has been issued an active tax exemption
11 identification number by the Department under Section 1g
12 of this Act.
13 (30) Beginning with taxable years ending on or after
14 December 31, 1995 and ending with taxable years ending on
15 or before December 31, 2004, personal property that is
16 donated for disaster relief to be used in a State or
17 federally declared disaster area in Illinois or bordering
18 Illinois by a manufacturer or retailer that is registered
19 in this State to a corporation, society, association,
20 foundation, or institution that has been issued a sales
21 tax exemption identification number by the Department that
22 assists victims of the disaster who reside within the
23 declared disaster area.
24 (31) Beginning with taxable years ending on or after
25 December 31, 1995 and ending with taxable years ending on
26 or before December 31, 2004, personal property that is

HB5015- 79 -LRB103 33725 HLH 63537 b
1 used in the performance of infrastructure repairs in this
2 State, including but not limited to municipal roads and
3 streets, access roads, bridges, sidewalks, waste disposal
4 systems, water and sewer line extensions, water
5 distribution and purification facilities, storm water
6 drainage and retention facilities, and sewage treatment
7 facilities, resulting from a State or federally declared
8 disaster in Illinois or bordering Illinois when such
9 repairs are initiated on facilities located in the
10 declared disaster area within 6 months after the disaster.
11 (32) Beginning July 1, 1999, game or game birds sold
12 at a "game breeding and hunting preserve area" as that
13 term is used in the Wildlife Code. This paragraph is
14 exempt from the provisions of Section 2-70.
15 (33) A motor vehicle, as that term is defined in
16 Section 1-146 of the Illinois Vehicle Code, that is
17 donated to a corporation, limited liability company,
18 society, association, foundation, or institution that is
19 determined by the Department to be organized and operated
20 exclusively for educational purposes. For purposes of this
21 exemption, "a corporation, limited liability company,
22 society, association, foundation, or institution organized
23 and operated exclusively for educational purposes" means
24 all tax-supported public schools, private schools that
25 offer systematic instruction in useful branches of
26 learning by methods common to public schools and that

HB5015- 80 -LRB103 33725 HLH 63537 b
1 compare favorably in their scope and intensity with the
2 course of study presented in tax-supported schools, and
3 vocational or technical schools or institutes organized
4 and operated exclusively to provide a course of study of
5 not less than 6 weeks duration and designed to prepare
6 individuals to follow a trade or to pursue a manual,
7 technical, mechanical, industrial, business, or commercial
8 occupation.
9 (34) Beginning January 1, 2000, personal property,
10 including food, purchased through fundraising events for
11 the benefit of a public or private elementary or secondary
12 school, a group of those schools, or one or more school
13 districts if the events are sponsored by an entity
14 recognized by the school district that consists primarily
15 of volunteers and includes parents and teachers of the
16 school children. This paragraph does not apply to
17 fundraising events (i) for the benefit of private home
18 instruction or (ii) for which the fundraising entity
19 purchases the personal property sold at the events from
20 another individual or entity that sold the property for
21 the purpose of resale by the fundraising entity and that
22 profits from the sale to the fundraising entity. This
23 paragraph is exempt from the provisions of Section 2-70.
24 (35) Beginning January 1, 2000 and through December
25 31, 2001, new or used automatic vending machines that
26 prepare and serve hot food and beverages, including

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1 coffee, soup, and other items, and replacement parts for
2 these machines. Beginning January 1, 2002 and through June
3 30, 2003, machines and parts for machines used in
4 commercial, coin-operated amusement and vending business
5 if a use or occupation tax is paid on the gross receipts
6 derived from the use of the commercial, coin-operated
7 amusement and vending machines. This paragraph is exempt
8 from the provisions of Section 2-70.
9 (35-5) Beginning August 23, 2001 and through June 30,
10 2016, food for human consumption that is to be consumed
11 off the premises where it is sold (other than alcoholic
12 beverages, soft drinks, and food that has been prepared
13 for immediate consumption) and prescription and
14 nonprescription medicines, drugs, medical appliances, and
15 insulin, urine testing materials, syringes, and needles
16 used by diabetics, for human use, when purchased for use
17 by a person receiving medical assistance under Article V
18 of the Illinois Public Aid Code who resides in a licensed
19 long-term care facility, as defined in the Nursing Home
20 Care Act, or a licensed facility as defined in the ID/DD
21 Community Care Act, the MC/DD Act, or the Specialized
22 Mental Health Rehabilitation Act of 2013.
23 (36) Beginning August 2, 2001, computers and
24 communications equipment utilized for any hospital purpose
25 and equipment used in the diagnosis, analysis, or
26 treatment of hospital patients sold to a lessor who leases

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1 the equipment, under a lease of one year or longer
2 executed or in effect at the time of the purchase, to a
3 hospital that has been issued an active tax exemption
4 identification number by the Department under Section 1g
5 of this Act. This paragraph is exempt from the provisions
6 of Section 2-70.
7 (37) Beginning August 2, 2001, personal property sold
8 to a lessor who leases the property, under a lease of one
9 year or longer executed or in effect at the time of the
10 purchase, to a governmental body that has been issued an
11 active tax exemption identification number by the
12 Department under Section 1g of this Act. This paragraph is
13 exempt from the provisions of Section 2-70.
14 (38) Beginning on January 1, 2002 and through June 30,
15 2016, tangible personal property purchased from an
16 Illinois retailer by a taxpayer engaged in centralized
17 purchasing activities in Illinois who will, upon receipt
18 of the property in Illinois, temporarily store the
19 property in Illinois (i) for the purpose of subsequently
20 transporting it outside this State for use or consumption
21 thereafter solely outside this State or (ii) for the
22 purpose of being processed, fabricated, or manufactured
23 into, attached to, or incorporated into other tangible
24 personal property to be transported outside this State and
25 thereafter used or consumed solely outside this State. The
26 Director of Revenue shall, pursuant to rules adopted in

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1 accordance with the Illinois Administrative Procedure Act,
2 issue a permit to any taxpayer in good standing with the
3 Department who is eligible for the exemption under this
4 paragraph (38). The permit issued under this paragraph
5 (38) shall authorize the holder, to the extent and in the
6 manner specified in the rules adopted under this Act, to
7 purchase tangible personal property from a retailer exempt
8 from the taxes imposed by this Act. Taxpayers shall
9 maintain all necessary books and records to substantiate
10 the use and consumption of all such tangible personal
11 property outside of the State of Illinois.
12 (39) Beginning January 1, 2008, tangible personal
13 property used in the construction or maintenance of a
14 community water supply, as defined under Section 3.145 of
15 the Environmental Protection Act, that is operated by a
16 not-for-profit corporation that holds a valid water supply
17 permit issued under Title IV of the Environmental
18 Protection Act. This paragraph is exempt from the
19 provisions of Section 2-70.
20 (40) Beginning January 1, 2010 and continuing through
21 December 31, 2024, materials, parts, equipment,
22 components, and furnishings incorporated into or upon an
23 aircraft as part of the modification, refurbishment,
24 completion, replacement, repair, or maintenance of the
25 aircraft. This exemption includes consumable supplies used
26 in the modification, refurbishment, completion,

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1 replacement, repair, and maintenance of aircraft, but
2 excludes any materials, parts, equipment, components, and
3 consumable supplies used in the modification, replacement,
4 repair, and maintenance of aircraft engines or power
5 plants, whether such engines or power plants are installed
6 or uninstalled upon any such aircraft. "Consumable
7 supplies" include, but are not limited to, adhesive, tape,
8 sandpaper, general purpose lubricants, cleaning solution,
9 latex gloves, and protective films. This exemption applies
10 only to the sale of qualifying tangible personal property
11 to persons who modify, refurbish, complete, replace, or
12 maintain an aircraft and who (i) hold an Air Agency
13 Certificate and are empowered to operate an approved
14 repair station by the Federal Aviation Administration,
15 (ii) have a Class IV Rating, and (iii) conduct operations
16 in accordance with Part 145 of the Federal Aviation
17 Regulations. The exemption does not include aircraft
18 operated by a commercial air carrier providing scheduled
19 passenger air service pursuant to authority issued under
20 Part 121 or Part 129 of the Federal Aviation Regulations.
21 The changes made to this paragraph (40) by Public Act
22 98-534 are declarative of existing law. It is the intent
23 of the General Assembly that the exemption under this
24 paragraph (40) applies continuously from January 1, 2010
25 through December 31, 2024; however, no claim for credit or
26 refund is allowed for taxes paid as a result of the

HB5015- 85 -LRB103 33725 HLH 63537 b
1 disallowance of this exemption on or after January 1, 2015
2 and prior to February 5, 2020 (the effective date of
3 Public Act 101-629) this amendatory Act of the 101st
4 General Assembly.
5 (41) Tangible personal property sold to a
6 public-facilities corporation, as described in Section
7 11-65-10 of the Illinois Municipal Code, for purposes of
8 constructing or furnishing a municipal convention hall,
9 but only if the legal title to the municipal convention
10 hall is transferred to the municipality without any
11 further consideration by or on behalf of the municipality
12 at the time of the completion of the municipal convention
13 hall or upon the retirement or redemption of any bonds or
14 other debt instruments issued by the public-facilities
15 corporation in connection with the development of the
16 municipal convention hall. This exemption includes
17 existing public-facilities corporations as provided in
18 Section 11-65-25 of the Illinois Municipal Code. This
19 paragraph is exempt from the provisions of Section 2-70.
20 (42) Beginning January 1, 2017 and through December
21 31, 2026, menstrual pads, tampons, and menstrual cups.
22 (43) Merchandise that is subject to the Rental
23 Purchase Agreement Occupation and Use Tax. The purchaser
24 must certify that the item is purchased to be rented
25 subject to a rental purchase agreement, as defined in the
26 Rental Purchase Agreement Act, and provide proof of

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1 registration under the Rental Purchase Agreement
2 Occupation and Use Tax Act. This paragraph is exempt from
3 the provisions of Section 2-70.
4 (44) Qualified tangible personal property used in the
5 construction or operation of a data center that has been
6 granted a certificate of exemption by the Department of
7 Commerce and Economic Opportunity, whether that tangible
8 personal property is purchased by the owner, operator, or
9 tenant of the data center or by a contractor or
10 subcontractor of the owner, operator, or tenant. Data
11 centers that would have qualified for a certificate of
12 exemption prior to January 1, 2020 had Public Act 101-31
13 this amendatory Act of the 101st General Assembly been in
14 effect, may apply for and obtain an exemption for
15 subsequent purchases of computer equipment or enabling
16 software purchased or leased to upgrade, supplement, or
17 replace computer equipment or enabling software purchased
18 or leased in the original investment that would have
19 qualified.
20 The Department of Commerce and Economic Opportunity
21 shall grant a certificate of exemption under this item
22 (44) to qualified data centers as defined by Section
23 605-1025 of the Department of Commerce and Economic
24 Opportunity Law of the Civil Administrative Code of
25 Illinois.
26 For the purposes of this item (44):

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1 "Data center" means a building or a series of
2 buildings rehabilitated or constructed to house
3 working servers in one physical location or multiple
4 sites within the State of Illinois.
5 "Qualified tangible personal property" means:
6 electrical systems and equipment; climate control and
7 chilling equipment and systems; mechanical systems and
8 equipment; monitoring and secure systems; emergency
9 generators; hardware; computers; servers; data storage
10 devices; network connectivity equipment; racks;
11 cabinets; telecommunications cabling infrastructure;
12 raised floor systems; peripheral components or
13 systems; software; mechanical, electrical, or plumbing
14 systems; battery systems; cooling systems and towers;
15 temperature control systems; other cabling; and other
16 data center infrastructure equipment and systems
17 necessary to operate qualified tangible personal
18 property, including fixtures; and component parts of
19 any of the foregoing, including installation,
20 maintenance, repair, refurbishment, and replacement of
21 qualified tangible personal property to generate,
22 transform, transmit, distribute, or manage electricity
23 necessary to operate qualified tangible personal
24 property; and all other tangible personal property
25 that is essential to the operations of a computer data
26 center. The term "qualified tangible personal

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1 property" also includes building materials physically
2 incorporated into the qualifying data center. To
3 document the exemption allowed under this Section, the
4 retailer must obtain from the purchaser a copy of the
5 certificate of eligibility issued by the Department of
6 Commerce and Economic Opportunity.
7 This item (44) is exempt from the provisions of
8 Section 2-70.
9 (45) Beginning January 1, 2020 and through December
10 31, 2020, sales of tangible personal property made by a
11 marketplace seller over a marketplace for which tax is due
12 under this Act but for which use tax has been collected and
13 remitted to the Department by a marketplace facilitator
14 under Section 2d of the Use Tax Act are exempt from tax
15 under this Act. A marketplace seller claiming this
16 exemption shall maintain books and records demonstrating
17 that the use tax on such sales has been collected and
18 remitted by a marketplace facilitator. Marketplace sellers
19 that have properly remitted tax under this Act on such
20 sales may file a claim for credit as provided in Section 6
21 of this Act. No claim is allowed, however, for such taxes
22 for which a credit or refund has been issued to the
23 marketplace facilitator under the Use Tax Act, or for
24 which the marketplace facilitator has filed a claim for
25 credit or refund under the Use Tax Act.
26 (46) Beginning July 1, 2022, breast pumps, breast pump

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1 collection and storage supplies, and breast pump kits.
2 This item (46) is exempt from the provisions of Section
3 2-70. As used in this item (46):
4 "Breast pump" means an electrically controlled or
5 manually controlled pump device designed or marketed to be
6 used to express milk from a human breast during lactation,
7 including the pump device and any battery, AC adapter, or
8 other power supply unit that is used to power the pump
9 device and is packaged and sold with the pump device at the
10 time of sale.
11 "Breast pump collection and storage supplies" means
12 items of tangible personal property designed or marketed
13 to be used in conjunction with a breast pump to collect
14 milk expressed from a human breast and to store collected
15 milk until it is ready for consumption.
16 "Breast pump collection and storage supplies"
17 includes, but is not limited to: breast shields and breast
18 shield connectors; breast pump tubes and tubing adapters;
19 breast pump valves and membranes; backflow protectors and
20 backflow protector adaptors; bottles and bottle caps
21 specific to the operation of the breast pump; and breast
22 milk storage bags.
23 "Breast pump collection and storage supplies" does not
24 include: (1) bottles and bottle caps not specific to the
25 operation of the breast pump; (2) breast pump travel bags
26 and other similar carrying accessories, including ice

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1 packs, labels, and other similar products; (3) breast pump
2 cleaning supplies; (4) nursing bras, bra pads, breast
3 shells, and other similar products; and (5) creams,
4 ointments, and other similar products that relieve
5 breastfeeding-related symptoms or conditions of the
6 breasts or nipples, unless sold as part of a breast pump
7 kit that is pre-packaged by the breast pump manufacturer
8 or distributor.
9 "Breast pump kit" means a kit that: (1) contains no
10 more than a breast pump, breast pump collection and
11 storage supplies, a rechargeable battery for operating the
12 breast pump, a breastmilk cooler, bottle stands, ice
13 packs, and a breast pump carrying case; and (2) is
14 pre-packaged as a breast pump kit by the breast pump
15 manufacturer or distributor.
16 (47) (46) Tangible personal property sold by or on
17 behalf of the State Treasurer pursuant to the Revised
18 Uniform Unclaimed Property Act. This item (47) (46) is
19 exempt from the provisions of Section 2-70.
20 (48) Qualified tangible personal property used in the
21 construction or operation of a megaproject for which a
22 certificate has been issued by the Department of Revenue
23 as described and defined in Division 22 of Article 10 of
24 the Property Tax Code, whether that tangible personal
25 property is purchased by the owner, operator, or tenant of
26 the megaproject or by a contractor or subcontractor of the

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1 owner, operator, or tenant. For the purposes of this item
2 (48):
3 "Facility" means a building or series of buildings.
4 "Megaproject" means a facility that is rehabilitated
5 or constructed as described in Division 22 of Article 10
6 of the Property Tax Code.
7 "Qualified tangible personal property" means:
8 electrical systems and equipment; climate control and
9 chilling equipment and systems; mechanical systems and
10 equipment; monitoring and secure systems; emergency
11 generators; hardware; computers; servers; data storage
12 devices; network connectivity equipment; racks; cabinets;
13 telecommunications cabling infrastructure; raised floor
14 systems; peripheral components or systems; software;
15 mechanical, electrical, or plumbing systems; battery
16 systems; cooling systems and towers; temperature control
17 systems; other cabling; and other data center
18 infrastructure equipment and systems necessary to operate
19 qualified tangible personal property, including fixtures;
20 and component parts of any of the foregoing, including
21 installation, maintenance, repair, refurbishment, and
22 replacement of qualified tangible personal property to
23 generate, transform, transmit, distribute, or manage
24 electricity necessary to operate qualified tangible
25 personal property; and all other tangible personal
26 property that is essential to the operations of a

HB5015- 92 -LRB103 33725 HLH 63537 b
1 megaproject. The term "qualified tangible personal
2 property" also includes building materials to be
3 incorporated into the megaproject. To document the
4 exemption allowed under this Section, the retailer,
5 contractor or subcontractor or supplier must obtain from
6 the purchaser a copy of the certificate issued by the
7 Department of Revenue for the megaproject as described and
8 defined in Division 22 of Article 10 of the Property Tax
9 Code.
10 This item (48) is exempt from the provisions of
11 Section 2-70.
12(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
13101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
148-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
15102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
16eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
17 Section 25. The Property Tax Code is amended by adding
18Division 22 to Article 10 as follows:
19 (35 ILCS 200/Art. 10 Div. 22 heading new)
20
Division 22. Megaprojects
21 (35 ILCS 200/10-900 new)
22 Sec. 10-900. Findings. The State's economy is highly
23vulnerable to other states that have major financial incentive

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1programs and competitive tax incentives. Certain businesses
2and commercial operations that generate significant economic
3activity bear a disproportionately high property tax burden
4compared to their impact on government services and compared
5to their positive economic benefits to the State and the local
6economy and their derivative benefits to taxing districts. To
7incentivize the significant capital investment and economic
8activity of certain large-scale businesses and industrial and
9commercial operations, the State finds that a valuation
10procedure for real property taxes on special properties, known
11as megaprojects, will reduce barriers to investment and
12economic activity in Illinois. The General Assembly finds that
13it is in the best interest of Illinois to establish a new
14category of valuation for megaprojects that recognizes their
15complexity and encourages local development at underutilized
16properties.
17 (35 ILCS 200/10-910 new)
18 Sec. 10-910. Megaproject Assessment Freeze and Payment
19Law; definitions. This Division 22 may be cited as the
20Megaproject Assessment Freeze and Payment Law.
21 As used in this Division:
22 "Assessment officer" means the chief county assessment
23officer of the county in which the megaproject is located.
24 "Assessment period" means the period beginning on the
25first day of the calendar year after the calendar year in which

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1a megaproject is placed in service and ending on the date when
2the megaproject no longer qualifies as a megaproject under
3this Division.
4 "Base tax year" means the tax year prior to the first
5calendar year during which the Department issues a megaproject
6certificate under this Division.
7 "Base year" means:
8 (1) the calendar year prior to the calendar year in
9 which the Department issues the megaproject certificate,
10 if the Department issues a megaproject certificate for a
11 project located on the property without granting
12 preliminary approval for the project pursuant to Section
13 10-940; or
14 (2) the calendar year prior to the calendar year in
15 which the Department grants that preliminary approval, if
16 the Department grants preliminary approval pursuant to
17 Section 10-940 for a megaproject located on the property.
18 "Base year valuation" means the assessed value, in the
19base year, of the property comprising the megaproject.
20 "Company" means one or more entities whose aggregate
21investment in the megaproject meets the minimum investment
22required under this Division. The term company includes a
23company affiliate unless the context clearly indicates
24otherwise.
25 "Company affiliate" means an entity that joins with or is
26an affiliate of a company and that participates in the

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1investment in, or financing of, a megaproject.
2 "Consumer Price Index" means the index published by the
3Bureau of Labor Statistics of the United States Department of
4Labor that measures the average change in prices of goods and
5services purchased by all urban consumers, United States city
6average, all items, 1982-84 = 100.
7 "Department" means the Department of Revenue.
8 "Eligible costs" means all costs incurred by or on behalf
9of, or allocated to, a company, prior to the Department's
10issuance of the megaproject certificate or during the
11investment period, to create or construct a megaproject.
12"Eligible costs" includes, without limitation:
13 (1) the purchase, site preparation, renovation,
14 rehabilitation and construction of land, buildings,
15 structures, equipment and furnishings used for or in the
16 megaproject;
17 (2) any goods or services for the megaproject that are
18 purchased and capitalized under generally accepted
19 accounting principles, including any organizational costs
20 and research and development costs incurred in Illinois;
21 (3) capitalized lease costs for land, buildings,
22 structures and equipment valued at their present value
23 using the interest rate at which the company borrows funds
24 prevailing at the time the company entered into the lease;
25 (4) infrastructure development costs;
26 (5) debt service and project financing costs;

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1 (6) non-capitalized research and development costs;
2 (7) job training and education costs;
3 (8) lease and relocation costs; and
4 (9) amounts expended by a company or company affiliate
5 as a non-responsible party pursuant to a voluntary program
6 of site remediation, including amounts expended to obtain
7 a certification of completion, if completion of
8 remediation is certified by the Illinois Environmental
9 Protection Agency.
10 "Entity" means a sole proprietor, partnership, firm,
11corporation, limited liability company, association, or other
12business enterprise.
13 "Incentive agreement" means an agreement between a company
14and an oversight board obligating the company to make the
15special payment under this Division, in addition to paying
16property taxes, during the incentive period for a megaproject.
17 "Incentive period" means the period beginning on the first
18day of the calendar year after the calendar year in which the
19megaproject is placed in service and each calendar year
20thereafter until the earlier of (i) the expiration or
21termination of the incentive agreement or (ii) the revocation
22of the megaproject certificate.
23 "Inducement resolution" means a resolution adopted by the
24local municipality setting forth the commitment of the local
25municipality to enter into an incentive agreement.
26 "Investment period" means the period ending 7 years after

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1the date on which the Department issues the megaproject
2certificate, or such other longer period of time as the
3oversight board and the company may agree to, not to exceed an
4initial period of 10 years.
5 "Local municipality" means the city, village, or
6incorporated town in which the megaproject is located or, if
7the megaproject is located in an unincorporated area, the
8county in which the megaproject is located.
9 "Local taxing district means a taxing district that levies
10taxes for the levy year prior to the year in which the
11application is submitted under Section 10-920 totaling 5% or
12more of the total property tax bill for the property on which
13the megaproject is located.
14 "Megaproject" means a project that satisfies the minimum
15investment, investment period, and other requirements of this
16Division.
17 "Megaproject certificate" means a certificate issued by
18the Department that authorizes an assessment freeze as
19provided in this Division.
20 "Minimum investment" means an investment in the
21megaproject of at least $250,000,000 in eligible costs within
22the investment period.
23 "Minority person" means a person who is a citizen or
24lawful permanent resident of the United States and who is any
25of the following:
26 (1) American Indian or Alaska Native (a person having

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1 origins in any of the original peoples of North and South
2 America, including Central America, and who maintains
3 tribal affiliation or community attachment).
4 (2) Asian (a person having origins in any of the
5 original peoples of the Far East, Southeast Asia, or the
6 Indian subcontinent, including, but not limited to,
7 Cambodia, China, India, Japan, Korea, Malaysia, Pakistan,
8 the Philippine Islands, Thailand, and Vietnam).
9 (3) Black or African American (a person having origins
10 in any of the black racial groups of Africa).
11 (4) Hispanic or Latino (a person of Cuban, Mexican,
12 Puerto Rican, South or Central American, or other Spanish
13 culture or origin, regardless of race).
14 (5) Native Hawaiian or Other Pacific Islander (a
15 person having origins in any of the original peoples of
16 Hawaii, Guam, Samoa, or other Pacific Islands).
17 "Minority-owned business" means a business that is at
18least 51% owned by one or more minority persons, or in the case
19of a corporation, at least 51% of the stock in which is owned
20by one or more minority persons; and the management and daily
21business operations of which are controlled by one or more of
22the minority individuals who own it.
23 "Oversight board" means the board established under
24Section 10-920.
25 "Placed in service" means that construction of the
26megaproject is substantially complete, which may be evidenced

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1by issuance of a certificate of occupancy for the megaproject
2by the local municipality or any other governmental body
3having jurisdiction over construction of the megaproject or,
4if no certificate of occupancy is required as to the
5megaproject, commencement of operations at the megaproject
6site.
7 "Project" means land, buildings, and other improvements on
8the land, including water, sewage treatment and disposal
9facilities, air pollution control facilities, and all other
10machinery, apparatus, equipment, office facilities, related
11infrastructure, and furnishings which are considered
12necessary, suitable, or useful by a company and comprise the
13megaproject, including all such property subject to assessment
14under the Property Tax Code.
15 "Special payment" means the annual amount paid in addition
16to property taxes paid during the incentive period as provided
17in the incentive agreement.
18 "Taxing district" has the meaning set forth in Section
191-150.
20 "Termination date" means the last day of a calendar year
21that is no later than the 23rd year following the first
22calendar year in which a megaproject is placed in service. A
23company may apply to the oversight board prior to the
24termination date for an extension of the termination date
25beyond the 23rd year for up to 17 additional years, for a total
26of 40 years. The oversight board shall approve an extension by

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1resolution upon a finding of substantial public benefit. A
2copy of the resolution must be delivered to the Department
3within 30 days of the date the resolution was adopted. If the
4incentive agreement is terminated under Section 10-937, then
5the termination date is the date the agreement is terminated.
6 (35 ILCS 200/10-915 new)
7 Sec. 10-915. Valuation during incentive period;
8eligibility.
9 (a) Property certified by the Department as megaproject
10property pursuant to this Division is eligible for an
11assessment freeze, as provided in this Division, eliminating
12from consideration, for assessment purposes during the
13incentive period, the value added to the property by the
14project and limiting the total valuation of the property
15during the incentive period to the base year valuation. If the
16company does not anticipate completing the project within the
17investment period, then the oversight board may approve one or
18more extensions of time to complete the project. However, the
19oversight board may not extend the project for a period that
20exceeds 5 years after the last day of the investment period.
21Unless approved as part of the original incentive agreement,
22the oversight board may approve an extension under this
23subsection by resolution, a copy of which must be delivered to
24the Department within 30 days after the date the resolution is
25adopted.

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1 (b) To qualify for a megaproject certificate, the company
2must:
3 (1) make the minimum investment in the megaproject
4 during the investment period; minimum investment
5 requirements shall be construed broadly for purposes of
6 this Division;
7 (2) enter into an incentive agreement with the
8 oversight board as described in this Division;
9 (3) enter into a project labor agreement with the
10 applicable local building trades council prior to the
11 commencement of any demolition, building construction, or
12 building renovation related to the project; and
13 (4) establish the goal of awarding 20% of the total
14 dollar amount of contracts that are related to the project
15 and are awarded by the company during each calendar year
16 to minority-owned businesses.
17 (c) For purposes of this Division, if a single company
18enters into a financing arrangement of the type described in
19subsection (b) of Section 10-950, the investment in or
20financing of the property by a developer, lessor, financing
21entity, or other third party in accordance with this
22arrangement is considered investment by the company.
23Investment by a related person to the company is considered
24investment by the company.
25 (35 ILCS 200/10-920 new)

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1 Sec. 10-920. Incentive agreement; assessment freeze for
2megaprojects; incentive period; inducement resolution;
3location of the project; criteria to qualify.
4 (a) To obtain the benefits provided in this Division, the
5company shall apply in writing to the local municipality to
6enter into an incentive agreement with the local municipality
7and the local taxing districts, in the form and manner
8required by the local municipality, and shall certify to the
9facts asserted in the application.
10 (b) Upon receipt of the application, the local
11municipality shall notify each local taxing district that the
12local municipality has received a megaproject application, and
13the local municipality and the local taxing districts shall
14establish an oversight board. The membership of the oversight
15board and the terms of office of its members shall be
16determined by the local municipality and the local taxing
17districts, provided that at least 50% of the voting members of
18the board shall represent local taxing districts that are
19school districts.
20 (c) The oversight board, prior to entering into an
21incentive agreement under this Section, shall hold a public
22hearing to consider the application. The amount and terms of
23the proposed special payment and the duration of the incentive
24agreement shall be considered at the public hearing.
25 (d) Copies of the completed application shall be provided
26to each local taxing district. Those copies shall be provided

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1at least 30 days prior to the scheduled public hearing under
2subsection (c).
3 (e) The company and the oversight board shall enter into
4an incentive agreement requiring the special payment described
5in Section 10-925. That agreement shall not take effect unless
6the corporate authorities of the local municipality and each
7local taxing district each adopt an ordinance approving the
8incentive agreement.
9 (f) If an incentive agreement is not executed within 5
10years after the local municipality's adoption of an inducement
11resolution, expenditures incurred by the company more than 5
12years prior to the execution of the incentive agreement shall
13not qualify as part of the minimum investment.
14 (g) To be eligible to enter into an incentive agreement
15under this Division, the company must commit to a project that
16meets the minimum investment set forth in this Division.
17 (35 ILCS 200/10-925 new)
18 Sec. 10-925. Contents of incentive agreement.
19 (a) The incentive agreement under Section 10-920 must
20require the company to pay, or be responsible for the payment
21of, annual special payments to the local municipality and each
22local taxing district, beginning with the first tax year for
23which the assessment freeze under this Division is applied to
24the megaproject. The amount of the special payment shall be
25set forth in the incentive agreement and shall be increased

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1annually by the lesser of (i) 5% or (ii) the percentage
2increase, if any, in the Consumer Price Index for the 12 months
3ending in September of the immediately preceding calendar
4year, and may be further increased or decreased every 5 years
5upon renegotiation by the parties as provided in subsection
6(e).
7 (b) The incentive agreement shall obligate the company to
8operate the megaproject at the designated project location for
9a minimum of 20 years or until the termination of the agreement
10as provided in Section 10-937, whichever occurs earlier.
11 (c) The incentive agreement may contain such other terms
12and conditions as are mutually agreeable to the oversight
13board and the company and are consistent with the requirements
14of this Division, including, without limitation, operational
15and job creation requirements.
16 (d) In addition, all incentive agreements entered into
17pursuant to Section 10-920 must include, as the first portion
18of the document, a recapitulation of the remaining contents of
19the document which includes, but is not limited to, the
20following:
21 (1) the legal name of each party to the agreement;
22 (2) the street address of the project and the property
23 subject to the agreement;
24 (3) the agreed minimum investment;
25 (4) the term of the agreement;
26 (5) a schedule showing the amount of the special

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1 payment and its calculation for each year of the
2 agreement;
3 (6) a schedule showing the amount to be distributed
4 annually to the local municipality and each local taxing
5 district;
6 (7) any other feature or aspect of the agreement which
7 may affect the calculation of items (5) and (6) of this
8 subsection; and
9 (8) the party or parties to the agreement who are
10 responsible for updating the information contained in the
11 summary document.
12 (e) The incentive agreement shall also contain a
13renegotiation clause that requires the parties to the
14agreement to renegotiate the terms of the agreement no less
15often than once every 5 years.
16 (35 ILCS 200/10-930 new)
17 Sec. 10-930. Installment bills; distribution of special
18payments.
19 (a) The county collector shall prepare a bill for each
20installment of the special payment according to the schedule
21set forth in paragraph (5) of subsection (d) of Section
2210-925, or as modified pursuant to paragraph (7) of subsection
23(d) of Section 10-925, and that payment must be distributed to
24the local taxing entities according to the schedule in
25paragraph (6) of subsection (d) of Section 10-925 or as

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1modified in paragraph (7) of subsection (d) of Section 10-925.
2 (b) Distribution to the local municipality and local
3taxing districts of the special payments associated with a
4megaproject must be made within 30 days after receipt by the
5county collector of the special payment amounts.
6 (c) Misallocations of the distribution of the special
7payments may be corrected by adjusting later distributions,
8but these adjustments must be made in the next succeeding year
9following identification and resolution of the misallocation.
10To the extent that distributions have been made improperly in
11previous years, claims for adjustment must be made within one
12year of the distribution.
13 (35 ILCS 200/10-932 new)
14 Sec. 10-932. Revenue sharing agreements. The local taxing
15districts, including the local municipality, may enter into
16revenue sharing agreements among themselves. Those agreements
17must be based on the results of an impact study including, but
18not limited to, an analysis of environmental impacts, housing
19costs, traffic impacts, and police and fire costs.
20 (35 ILCS 200/10-935 new)
21 Sec. 10-935. Use of revenues. A taxing district that
22receives and retains revenues from a special payment under
23this Division may use all or a portion of the revenues for the
24purposes of financing the issuance of revenue bonds.

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1 (35 ILCS 200/10-937 new)
2 Sec. 10-937. Termination of incentive agreement; automatic
3termination; minimum level of investment required to remain
4qualified for assessment freeze.
5 (a) The oversight board and the company may mutually agree
6to terminate the incentive agreement at any time. From the
7date of termination, the megaproject is subject to assessment
8on the basis of the then current fair cash value.
9 (b) An incentive agreement shall be terminated if the
10company fails to satisfy the minimum investment level provided
11in this Division. If the incentive agreement is terminated
12under this subsection, the megaproject is subject to
13assessment on the basis of the then current fair cash value
14beginning in the tax year during which the termination occurs.
15 (c) An incentive agreement shall terminate if, at any
16time, the company no longer has the minimum level of
17investment as provided in this Division, without regard to
18depreciation.
19 (35 ILCS 200/10-940 new)
20 Sec. 10-940. Megaproject applications; certification as a
21megaproject and revocation of certification.
22 (a) The Department shall receive applications for
23megaproject certificates under this Division in a form and
24manner provided by the Department by rule. The Department

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1shall promptly notify the chief county assessment officer when
2the Department receives an application under this Section. The
3Department's rules shall provide that an applicant may request
4preliminary approval of the megaproject before the project
5begins, before the applicant has entered into a fully executed
6incentive agreement with the oversight board, or before the
7project has been placed in service.
8 (b) An applicant for a megaproject certificate under this
9Division must provide evidence to the Department of a fully
10executed incentive agreement between the company and the
11oversight board as described in this Division.
12 (c) An applicant for a megaproject certificate under this
13Division must provide evidence to the Department of a fully
14executed project labor agreement entered into with the
15applicable local building trades council prior to the
16commencement of any demolition, building construction, or
17building renovation at the project. If the demolition,
18building construction, or building renovation begins after the
19application is approved, then the applicant must transmit a
20copy of the fully executed project labor agreement to the
21Department as soon as possible after the agreement is
22executed.
23 (d) An applicant for a megaproject certificate under this
24Division must provide evidence to the Department that the
25company has established the goal of awarding 20% of the total
26dollar amount of contracts awarded during each calendar year

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1by the company, that are related to the project, to
2minority-owned businesses.
3 (e) The Department shall approve an application for a
4megaproject certificate if the Department finds that the
5project meets the requirements of this Division.
6 (f) Upon approval of the application, the Department shall
7issue a megaproject certificate to the applicant and transmit
8a copy to the chief county assessment officer. The certificate
9shall identify the property on which the megaproject is
10located.
11 (g) For each calendar year following issuance of the
12megaproject certificate, until the minimum investment
13requirements have been met and the megaproject has been placed
14in service, the company shall deliver a report to the
15Department on the status of construction or creation of the
16megaproject and the amount of minimum investment made in the
17megaproject during the preceding calendar year. If the
18Department determines, in accordance with the Administrative
19Review Law and the Illinois Administrative Procedure Act, that
20a project for which a certificate has been issued has not met
21the minimum investment requirements of this Division within
22the investment period, the Department shall revoke the
23certificate by written notice to the taxpayer of record and
24transmit a copy of the revocation to the assessment officer.
25 (h) If the oversight board notifies the Department that
26the incentive agreement has been terminated, the Department

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1shall revoke the certificate by written notice to the taxpayer
2of record and transmit a copy of the revocation to the
3assessment officer.
4 (35 ILCS 200/10-945 new)
5 Sec. 10-945. Computation of valuation.
6 (a) Upon receipt of the megaproject certificate from the
7Department, the chief county assessment officer shall
8determine the base year valuation and shall make a notation on
9each statement of assessment during the assessment period that
10the valuation of the project is based upon the issuance of a
11megaproject certificate.
12 (b) Upon revocation of a megaproject certificate, the
13chief county assessment officer shall compute the assessed
14valuation of the project on the basis of the then current fair
15cash value of the property.
16 (35 ILCS 200/10-950 new)
17 Sec. 10-950. Transfers of interest in a megaproject;
18sale-leaseback arrangement; requirements.
19 (a) Subject to the terms of the incentive agreement
20between the company and the oversight board, ownership of or
21any interest in the megaproject and any and all related
22project property, including, without limitation, transfers of
23indirect beneficial interests and equity interests in a
24company owning a megaproject, shall not affect the assessment

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1freeze or the validity of the megaproject certificate issued
2under this Division. Notwithstanding the provisions of this
3subsection, the incentive agreement shall be a covenant
4running with the land.
5 (b) A company may enter into lending, financing, security,
6leasing, or similar arrangements, or a succession of such
7arrangements, with a financing entity concerning all or part
8of a project including, without limitation, a sale-leaseback
9arrangement, equipment lease, build-to-suit lease, synthetic
10lease, nordic lease, defeased tax benefit, or transfer lease,
11an assignment, sublease, or similar arrangement, or succession
12of those arrangements, with one or more financing entities
13concerning all or part of a project, regardless of the
14identity of the income tax or fee owner of the megaproject.
15Neither the original transfer to the financing entity nor the
16later transfer from the financing entity back to the company,
17pursuant to terms in the sale-leaseback agreement, shall
18affect the assessment freeze or the validity of the
19megaproject certificate issued under this Division, regardless
20of whether the income tax basis is changed for income tax
21purposes.
22 (c) The Department must receive notice of all transfers
23undertaken with respect to other projects to effect a
24financing. Notice shall be made in writing within 60 days
25after the transfer, identifying each transferee and containing
26other information required by the Department with the

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1appropriate returns. Failure to meet this notice requirement
2does not adversely affect the assessment freeze.
3 (35 ILCS 200/10-955 new)
4 Sec. 10-955. Minimum investment by company affiliates. To
5be eligible for the benefits of this Division, a company must
6make the minimum investment. Investments by company affiliates
7during the investment period may be applied toward the minimum
8investment under this Division regardless of whether the
9company affiliate was part of the project. To qualify for the
10assessment freeze, the minimum investments must be made at the
11megaproject site.
12 (35 ILCS 200/10-960 new)
13 Sec. 10-960. Projects to be valued at fair cash value for
14purposes of bonded indebtedness and limitations on property
15tax extensions. Projects to which an assessment freeze applies
16pursuant to this Division shall be valued at their fair cash
17value for purposes of calculating a municipality's general
18obligation bond limits and a taxing district's limitation on
19tax extensions.
20 (35 ILCS 200/10-965 new)
21 Sec. 10-965. Abatements. Any local taxing district, upon a
22majority vote of its governing authority, may, after the
23determination of the assessed valuation as set forth in this

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1Division, order the clerk of the appropriate municipality or
2county to abate any portion of real property taxes otherwise
3levied or extended by the taxing district on a megaproject.
4 (35 ILCS 200/10-970 new)
5 Sec. 10-970. Filing of returns, contracts, and other
6information; due date of payments and returns.
7 (a) The company and the oversight board shall file
8notices, reports, and other information as required by the
9Department.
10 (b) Special payments are due at the same time as property
11tax payments and property tax returns are due for the
12megaproject property.
13 (c) Failure to make a timely special payment results in
14the assessment of penalties as if the payment were a
15delinquent property tax payment or return.
16 (d) Within 30 days after the date of execution of an
17incentive agreement, a copy of the incentive agreement must be
18filed with the Department, the county assessor, and the county
19auditor for the county in which the megaproject is located.
20 (35 ILCS 200/10-980 new)
21 Sec. 10-980. Rules. The Department may issue rulings and
22adopt rules as necessary to carry out the purpose of this
23Division.

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1 (35 ILCS 200/10-990 new)
2 Sec. 10-990. Invalidity. If all or any part of this
3Division is determined to be unconstitutional or otherwise
4unenforceable by a court of competent jurisdiction, a company
5has 180 days from the date of the determination to transfer
6title to a megaproject to an authorized economic development
7authority, which may qualify for property tax assessment under
8this Division or which may be exempt from property taxes.
9 Section 97. Severability. The provisions of this Act are
10severable under Section 1.31 of the Statute on Statutes.
11 Section 99. Effective date. This Act takes effect June 1,
122024.

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1 INDEX
2 Statutes amended in order of appearance
3 35 ILCS 105/3-5
4 35 ILCS 110/3-5
5 35 ILCS 115/3-5
6 35 ILCS 120/2-5
7 35 ILCS 200/Art. 10 Div.
8 22 heading new
9 35 ILCS 200/10-900 new
10 35 ILCS 200/10-910 new
11 35 ILCS 200/10-915 new
12 35 ILCS 200/10-920 new
13 35 ILCS 200/10-925 new
14 35 ILCS 200/10-930 new
15 35 ILCS 200/10-932 new
16 35 ILCS 200/10-935 new
17 35 ILCS 200/10-937 new
18 35 ILCS 200/10-940 new
19 35 ILCS 200/10-945 new
20 35 ILCS 200/10-950 new
21 35 ILCS 200/10-955 new
22 35 ILCS 200/10-960 new
23 35 ILCS 200/10-965 new
24 35 ILCS 200/10-970 new
25 35 ILCS 200/10-980 new

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