Bill Text: IL HB5640 | 2023-2024 | 103rd General Assembly | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Statute on Statutes. Provides that whenever there is a reference in any Act to "armed forces", "armed forces of the United States", "U.S. Armed Forces", "United States Armed Forces", or "uniformed services", these terms shall be construed to include the United States Space Force. Amends the Flag Display Act, the Secretary of State Merit Employment Code, the Veterans Preference Act, the Veterans Burial Places Act, and various other Acts. In all occurrences of the definition for "armed forces of the United States" and "member of the Armed Services or Reserve Forces of the United States" expands the list of armed forces branches to include the Space Force. Makes conforming changes in the definition of "veteran" under the Department of Commerce and Economic Opportunity Law, in the definition of "military service" under the Illinois Pension Code, and in a provision under the Veterans Burial Places Act that lists the various military branches that make up the Reserve Officers Training Corps. Makes other conforming changes.

Spectrum: Slight Partisan Bill (Democrat 18-6)

Status: (Passed) 2024-08-02 - Public Act . . . . . . . . . 103-0746 [HB5640 Detail]

Download: Illinois-2023-HB5640-Enrolled.html

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AN ACT concerning the United States Space Force.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 3. The Statute on Statutes is amended by adding
Section 1.45 as follows:
(5 ILCS 70/1.45 new)
Sec. 1.45. Reference to armed forces or uniformed
services. Whenever there is a reference in any Act to "armed
forces", "armed forces of the United States", "U.S. Armed
Forces", "United States Armed Forces", or "uniformed
services", these terms shall be construed to include the
United States Space Force.
Section 5. The Flag Display Act is amended by changing
Section 10 as follows:
(5 ILCS 465/10)
Sec. 10. Death of resident military member, law
enforcement officer, firefighter, or members of EMS crews.
(a) The Governor shall issue an official notice to fly the
following flags at half-staff upon the death of a resident of
this State killed (i) by hostile fire as a member of the United
States armed forces, (ii) in the line of duty as a law

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enforcement officer, (iii) in the line of duty as a
firefighter, (iv) in the line of duty as a member of an
Emergency Medical Services (EMS) crew, or (v) during on duty
training for active military duty: the United States national
flag, the State flag of Illinois, and, in the case of the death
of the member of the United States armed forces, the
appropriate military flag as defined in subsection (b) of
Section 18.6 of the Condominium Property Act and the Honor and
Remember Flag designated under Section 16 of this Act. Upon
the Governor's notice, each person or entity required by this
Act to ensure the display of the United States national flag on
a flagstaff shall ensure that the flags described in the
notice are displayed at half-staff on the day designated for
the resident's funeral and the 2 days preceding that day.
(b) The Department of Veterans' Affairs shall notify the
Governor of the death by hostile fire of an Illinois resident
member of the United States armed forces. In lieu of notice
being provided by the Department of Veterans' Affairs, any
other State or Federal entity, agency, or person holding such
information may notify the Governor of the death by hostile
fire of an Illinois resident member of the United States armed
forces. If such notice is provided to the Governor by an
entity, agency, or person other than the Department of
Veterans' Affairs, then the obligation to notify the Governor
of an Illinois resident soldier's death under this subsection
(b) shall be considered fulfilled. The Illinois State Police

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shall notify the Governor of the death in the line of duty of
an Illinois resident law enforcement officer. The Office of
the State Fire Marshal shall notify the Governor of the death
in the line of duty of an Illinois resident firefighter. The
Department of Public Health shall notify the Governor of the
death in the line of duty of an Illinois resident member of an
Emergency Medical Services (EMS) crew. Notice to the Governor
shall include at least the resident's name and Illinois
address, the date designated for the funeral, and the
circumstances of the death.
(c) For the purpose of this Section, the United States
armed forces includes: (i) the United States Army, Navy,
Marine Corps, Air Force, Space Force, and Coast Guard; (ii)
any reserve component of each of the forces listed in item (i);
and (iii) the National Guard.
(d) Nothing in this Section requires the removal or
relocation of any existing flags currently displayed in the
State. This Section does not apply to a State facility if the
requirements of this Section cannot be satisfied without a
physical modification to that facility.
(Source: P.A. 102-538, eff. 8-20-21; 103-409, eff. 1-1-24.)
Section 10. The Secretary of State Merit Employment Code
is amended by changing Section 10b.7 as follows:
(15 ILCS 310/10b.7) (from Ch. 124, par. 110b.7)

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Sec. 10b.7. For the granting of appropriate preference in
entrance examinations to qualified persons who have been
members of the armed forces of the United States or to
qualified persons who, while citizens of the United States,
were members of the armed forces of allies of the United States
in time of hostilities with a foreign country, and to certain
other persons as set forth in this Section.
(a) As used in this Section:
(1) "Time of hostilities with a foreign country" means
any period of time in the past, present, or future during
which a declaration of war by the United States Congress
has been or is in effect or during which an emergency
condition has been or is in effect that is recognized by
the issuance of a Presidential proclamation or a
Presidential executive order and in which the armed forces
expeditionary medal or other campaign service medals are
awarded according to Presidential executive order.
(2) "Armed forces of the United States" means the
United States Army, Navy, Air Force, Space Force, Marine
Corps, Coast Guard. Service in the Merchant Marine that
constitutes active duty under Section 401 of federal
Public Law 95-202 shall also be considered service in the
Armed Forces of the United States for purposes of this
Section.
(b) The preference granted under this Section shall be in
the form of points added to the final grades of the persons if

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they otherwise qualify and are entitled to appear on the list
of those eligible for appointments.
(c) A veteran is qualified for a preference of 10 points if
the veteran currently holds proof of a service connected
disability from the United States Department of Veterans
Affairs or an allied country or if the veteran is a recipient
of the Purple Heart.
(d) A veteran who has served during a time of hostilities
with a foreign country is qualified for a preference of 5
points if the veteran served under one or more of the following
conditions:
(1) The veteran served a total of at least 6 months, or
(2) The veteran served for the duration of hostilities
regardless of the length of engagement, or
(3) The veteran was discharged on the basis of
hardship, or
(4) The veteran was released from active duty because
of a service connected disability and was discharged under
honorable conditions.
(e) A person not eligible for a preference under
subsection (c) or (d) is qualified for a preference of 3 points
if the person has served in the armed forces of the United
States, the Illinois National Guard, or any reserve component
of the armed forces of the United States and the person: (1)
served for at least 6 months and has been discharged under
honorable conditions or (2) has been discharged on the ground

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of hardship or (3) was released from active duty because of a
service connected disability. An active member of the National
Guard or a reserve component of the armed forces of the United
States is eligible for the preference if the member meets the
service requirements of this subsection (e).
(f) The rank order of persons entitled to a preference on
eligible lists shall be determined on the basis of their
augmented ratings. When the Director establishes eligible
lists on the basis of category ratings such as "superior",
"excellent", "well-qualified", and "qualified", the veteran
eligibles in each such category shall be preferred for
appointment before the non-veteran eligibles in the same
category.
(g) Employees in positions covered by jurisdiction B who,
while in good standing, leave to engage in military service
during a period of hostility, shall be given credit for
seniority purposes for time served in the armed forces.
(h) A surviving unremarried spouse of a veteran who
suffered a service connected death or the spouse of a veteran
who suffered a service connected disability that prevents the
veteran from qualifying for civil service employment shall be
entitled to the same preference to which the veteran would
have been entitled under this Section.
(i) A preference shall also be given to the following
individuals: 10 points for one parent of an unmarried veteran
who suffered a service connected death or a service connected

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disability that prevents the veteran from qualifying for civil
service employment. The first parent to receive a civil
service appointment shall be the parent entitled to the
preference.
(Source: P.A. 87-796.)
Section 15. The Comptroller Merit Employment Code is
amended by changing Section 10b.7 as follows:
(15 ILCS 410/10b.7) (from Ch. 15, par. 432)
Sec. 10b.7. For the granting of appropriate preference in
entrance examinations to qualified veterans or persons who
have been members of the armed forces of the United States or
to qualified persons who, while citizens of the United States,
were members of the armed forces of allies of the United States
in time of hostilities with a foreign country, and to certain
other persons as set forth in this Section.
(a) As used in this Section:
(1) "Time of hostilities with a foreign country" means
any period of time in the past, present, or future during
which a declaration of war by the United States Congress
has been or is in effect or during which an emergency
condition has been or is in effect that is recognized by
the issuance of a Presidential proclamation or a
Presidential executive order and in which the armed forces
expeditionary medal or other campaign service medals are

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awarded according to Presidential executive order.
(2) "Armed forces of the United States" means the
United States Army, Navy, Air Force, Space Force, Marine
Corps, Coast Guard. Service in the Merchant Marine that
constitutes active duty under Section 401 of federal
Public Law 95-202 shall also be considered service in the
Armed Forces of the United States for purposes of this
Section.
(3) "Veteran" means a person who has served as a member of
the armed forces of the United States, the Illinois National
Guard, or a reserve component of the armed forces of the United
States.
(b) The preference granted under this Section shall be in
the form of points added to the final grades of the persons if
they otherwise qualify and are entitled to appear on the list
of those eligible for appointments.
(c) A veteran is qualified for a preference of 10 points if
the veteran currently holds proof of a service connected
disability from the United States Department of Veterans
Affairs or an allied country or if the veteran is a recipient
of the Purple Heart.
(d) A veteran who has served during a time of hostilities
with a foreign country is qualified for a preference of 5
points if the veteran served under one or more of the following
conditions:
(1) The veteran served a total of at least 6 months, or

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(2) The veteran served for the duration of hostilities
regardless of the length of engagement, or
(3) The veteran was discharged on the basis of
hardship, or
(4) The veteran was released from active duty because
of a service connected disability and was discharged under
honorable conditions.
(e) A person not eligible for a preference under
subsection (c) or (d) is qualified for a preference of 3 points
if the person has served in the armed forces of the United
States, the Illinois National Guard, or any reserve component
of the armed forces of the United States and the person: (1)
served for at least 6 months and has been discharged under
honorable conditions; (2) has been discharged on the ground of
hardship; (3) was released from active duty because of a
service connected disability; or (4) served a minimum of 4
years in the Illinois National Guard or reserve component of
the armed forces of the United States regardless of whether or
not the person was mobilized to active duty. An active member
of the National Guard or a reserve component of the armed
forces of the United States is eligible for the preference if
the member meets the service requirements of this subsection
(e).
(f) The rank order of persons entitled to a preference on
eligible lists shall be determined on the basis of their
augmented ratings. When the Director establishes eligible

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lists on the basis of category ratings such as "superior",
"excellent", "well-qualified", and "qualified", the veteran
eligibles in each such category shall be preferred for
appointment before the non-veteran eligibles in the same
category.
(g) Employees in positions covered by jurisdiction B who,
while in good standing, leave to engage in military service
during a period of hostility, shall be given credit for
seniority purposes for time served in the armed forces.
(h) A surviving unremarried spouse of a veteran who
suffered a service connected death or the spouse of a veteran
who suffered a service connected disability that prevents the
veteran from qualifying for civil service employment shall be
entitled to the same preference to which the veteran would
have been entitled under this Section.
(i) A preference shall also be given to the following
individuals: 10 points for one parent of an unmarried veteran
who suffered a service connected death or a service connected
disability that prevents the veteran from qualifying for civil
service employment. The first parent to receive a civil
service appointment shall be the parent entitled to the
preference.
(Source: P.A. 100-763, eff. 8-10-18.)
Section 20. The State Treasurer Employment Code is amended
by changing Section 9b.5 as follows:

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(15 ILCS 510/9b.5) (from Ch. 130, par. 109b.5)
Sec. 9b.5. For the granting of appropriate preference in
entrance examinations to qualified persons who have been
members of the armed forces of the United States or to
qualified persons who, while citizens of the United States,
were members of the armed forces of allies of the United States
in time of hostilities with a foreign country, and to certain
other persons as set forth in this Section.
(a) As used in this Section:
(1) "Time of hostilities with a foreign country" means
any period of time in the past, present, or future during
which a declaration of war by the United States Congress
has been or is in effect or during which an emergency
condition has been or is in effect that is recognized by
the issuance of a Presidential proclamation or a
Presidential executive order and in which the armed forces
expeditionary medal or other campaign service medals are
awarded according to Presidential executive order.
(2) "Armed forces of the United States" means the
United States Army, Navy, Air Force, Space Force, Marine
Corps, Coast Guard. Service in the Merchant Marine that
constitutes active duty under Section 401 of federal
Public Law 95-202 shall also be considered service in the
Armed Forces of the United States for purposes of this
Section.

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(b) The preference granted under this Section shall be in
the form of points added to the final grades of the persons if
they otherwise qualify and are entitled to appear on the list
of those eligible for appointments.
(c) A veteran is qualified for a preference of 10 points if
the veteran currently holds proof of a service connected
disability from the United States Department of Veterans
Affairs or an allied country or if the veteran is a recipient
of the Purple Heart.
(d) A veteran who has served during a time of hostilities
with a foreign country is qualified for a preference of 5
points if the veteran served under one or more of the following
conditions:
(1) The veteran served a total of at least 6 months, or
(2) The veteran served for the duration of hostilities
regardless of the length of engagement, or
(3) The veteran was discharged on the basis of
hardship, or
(4) The veteran was released from active duty because
of a service connected disability and was discharged under
honorable conditions.
(e) A person not eligible for a preference under
subsection (c) or (d) is qualified for a preference of 3 points
if the person has served in the armed forces of the United
States, the Illinois National Guard, or any reserve component
of the armed forces of the United States if the person: (1)

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served for at least 6 months and has been discharged under
honorable conditions or (2) has been discharged on the ground
of hardship or (3) was released from active duty because of a
service connected disability. An active member of the National
Guard or a reserve component of the armed forces of the United
States is eligible for the preference if the member meets the
service requirements of this subsection (e).
(f) The rank order of persons entitled to a preference on
eligible lists shall be determined on the basis of their
augmented ratings. When the Director establishes eligible
lists on the basis of category ratings such as "superior",
"excellent", "well-qualified", and "qualified", the veteran
eligibles in each such category shall be preferred for
appointment before the non-veteran eligibles in the same
category.
(g) Employees in positions covered by this Code who, while
in good standing, leave to engage in military service during a
period of hostility, shall be given credit for seniority
purposes for time served in the armed forces.
(h) A surviving unremarried spouse of a veteran who
suffered a service connected death or the spouse of a veteran
who suffered a service connected disability that prevents the
veteran from qualifying for civil service employment shall be
entitled to the same preference to which the veteran would
have been entitled under this Section.
(i) A preference shall also be given to the following

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individuals: 10 points for one parent of an unmarried veteran
who suffered a service connected death or a service connected
disability that prevents the veteran from qualifying for civil
service employment. The first parent to receive a civil
service appointment shall be the parent entitled to the
preference.
(Source: P.A. 87-796.)
Section 25. The Personnel Code is amended by changing
Section 8b.7 as follows:
(20 ILCS 415/8b.7) (from Ch. 127, par. 63b108b.7)
Sec. 8b.7. Veteran preference. For the granting of
appropriate preference to qualified veterans, persons who have
been members of the armed forces of the United States or to
qualified persons who, while citizens of the United States,
were members of the armed forces of allies of the United States
in time of hostilities with a foreign country, and to certain
other persons as set forth in this Section.
(a) As used in this Section:
(1) "Time of hostilities with a foreign country" means
any period of time in the past, present, or future during
which a declaration of war by the United States Congress
has been or is in effect or during which an emergency
condition has been or is in effect that is recognized by
the issuance of a Presidential proclamation or a

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Presidential executive order and in which the armed forces
expeditionary medal or other campaign service medals are
awarded according to Presidential executive order.
(2) "Armed forces of the United States" means the
United States Army, Navy, Air Force, Space Force, Marine
Corps, and Coast Guard. Service in the Merchant Marine
that constitutes active duty under Section 401 of federal
Public Law 95-202 shall also be considered service in the
Armed Forces of the United States for purposes of this
Section.
(3) "Veteran" means a member of the armed forces of
the United States, the Illinois National Guard, or a
reserve component of the armed forces of the United
States.
(b) The preference granted under this Section shall be in
the form of points, or the equivalent, added to the applicable
scores of the persons if they otherwise qualify and are
entitled to be considered for appointment.
(c) A veteran is qualified for a preference of 10 points if
the veteran currently holds proof of a service connected
disability from the United States Department of Veterans
Affairs or an allied country or if the veteran is a recipient
of the Purple Heart.
(d) A veteran who has served during a time of hostilities
with a foreign country is qualified for a preference of 5
points if the veteran served under one or more of the following

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conditions:
(1) The veteran served a total of at least 6 months, or
(2) The veteran served for the duration of hostilities
regardless of the length of engagement, or
(3) The veteran was discharged on the basis of
hardship, or
(4) The veteran was released from active duty because
of a service connected disability and was discharged under
honorable conditions.
(e) A person not eligible for a preference under
subsection (c) or (d) is qualified for a preference of 3 points
if the person has served in the armed forces of the United
States, the Illinois National Guard, or any reserve component
of the armed forces of the United States if the person: (1)
served for at least 6 months and has been discharged under
honorable conditions; (2) has been discharged on the ground of
hardship; (3) was released from active duty because of a
service connected disability; or (4) served a minimum of 4
years in the Illinois National Guard or reserve component of
the armed forces of the United States regardless of whether or
not the person was mobilized to active duty. An active member
of the National Guard or a reserve component of the armed
forces of the United States is eligible for the preference if
the member meets the service requirements of this subsection
(e).
(f) The augmented ratings shall be used when determining

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the rank order of persons to be appointed.
(g) Employees in positions covered by jurisdiction B who,
while in good standing, leave to engage in military service
during a period of hostility, shall be given credit for
seniority purposes for time served in the armed forces.
(h) A surviving unremarried spouse of a veteran who
suffered a service connected death or the spouse of a veteran
who suffered a service connected disability that prevents the
veteran from qualifying for civil service employment shall be
entitled to the same preference to which the veteran would
have been entitled under this Section.
(i) A preference shall also be given to the following
individuals: 10 points for one parent of an unmarried veteran
who suffered a service connected death or a service connected
disability that prevents the veteran from qualifying for civil
service employment. The first parent to receive a civil
service appointment shall be the parent entitled to the
preference.
(j) The Department of Central Management Services shall
adopt rules and implement procedures to verify that any person
seeking a preference under this Section is entitled to the
preference. A person seeking a preference under this Section
shall provide documentation or execute any consents or other
documents required by the Department of Central Management
Services or any other State department or agency to enable the
department or agency to verify that the person is entitled to

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the preference.
(k) If an applicant claims to be a veteran, the Department
of Central Management Services must verify that status before
granting a veteran preference by requiring a certified copy of
the applicant's most recent DD214 (Certificate of Release or
Discharge from Active Duty), NGB-22 (Proof of National Guard
Service), or other evidence of the applicant's most recent
honorable discharge from the Armed Forces of the United States
that is determined to be acceptable by the Department of
Central Management Services.
(Source: P.A. 103-108, eff. 6-27-23.)
Section 30. The Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois
is amended by changing Section 605-503 as follows:
(20 ILCS 605/605-503)
Sec. 605-503. Entrepreneurship assistance centers.
(a) The Department shall establish and support, subject to
appropriation, entrepreneurship assistance centers, including
the issuance of grants, at career education agencies and
not-for-profit corporations, including, but not limited to,
local development corporations, chambers of commerce,
community-based business outreach centers, and other
community-based organizations. The purpose of the centers
shall be to train minority group members, women, individuals

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with a disability, dislocated workers, veterans, and youth
entrepreneurs in the principles and practice of
entrepreneurship in order to prepare those persons to pursue
self-employment opportunities and to pursue a minority
business enterprise or a women-owned business enterprise. The
centers shall provide for training in all aspects of business
development and small business management as defined by the
Department.
(b) The Department shall establish criteria for selection
and designation of the centers which shall include, but not be
limited to:
(1) the level of support for the center from local
post-secondary education institutions, businesses, and
government;
(2) the level of financial assistance provided at the
local and federal level to support the operations of the
center;
(3) the applicant's understanding of program goals and
objectives articulated by the Department;
(4) the plans of the center to supplement State and
local funding through fees for services which may be based
on a sliding scale based on ability to pay;
(5) the need for and anticipated impact of the center
on the community in which it will function;
(6) the quality of the proposed work plan and staff of
the center; and

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(7) the extent of economic distress in the area to be
served.
(c) Each center shall:
(1) be operated by a board of directors representing
community leaders in business, education, finance, and
government;
(2) be incorporated as a not-for-profit corporation;
(3) be located in an area accessible to eligible
clients;
(4) establish an advisory group of community business
experts, at least one-half of whom shall be representative
of the clientele to be served by the center, which shall
constitute a support network to provide counseling and
mentoring services to minority group members, women,
individuals with a disability, dislocated workers,
veterans, and youth entrepreneurs from the concept stage
of development through the first one to 2 years of
existence on a regular basis and as needed thereafter; and
(5) establish a referral system and linkages to
existing area small business assistance programs and
financing sources.
(d) Each entrepreneurship assistance center shall provide
needed services to eligible clients, including, but not
limited to: (i) orientation and screening of prospective
entrepreneurs; (ii) analysis of business concepts and
technical feasibility; (iii) market analysis; (iv) management

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analysis and counseling; (v) business planning and financial
planning assistance; (vi) referrals to financial resources;
(vii) referrals to existing educational programs for training
in such areas as marketing, accounting, and other training
programs as may be necessary and available; and (viii)
referrals to business incubator facilities, when appropriate,
for the purpose of entering into agreements to access shared
support services.
(e) Applications for grants made under this Section shall
be made in the manner and on forms prescribed by the
Department. The application shall include, but shall not be
limited to:
(1) a description of the training programs available
within the geographic area to be served by the center to
which eligible clients may be referred;
(2) designation of a program director;
(3) plans for providing ongoing technical assistance
to program graduates, including linkages with providers of
other entrepreneurial assistance programs and with
providers of small business technical assistance and
services;
(4) a program budget, including matching funds,
in-kind and otherwise, to be provided by the applicant;
and
(5) any other requirements as deemed necessary by the
Department.

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(f) Grants made under this Section shall be disbursed for
payment of the cost of services and expenses of the program
director, the instructors of the participating career
education agency or not-for-profit corporation, the faculty
and support personnel thereof, and any other person in the
service of providing instruction and counseling in furtherance
of the program.
(g) The Department shall monitor the performance of each
entrepreneurial assistance center and require quarterly
reports from each center at such time and in such a manner as
prescribed by the Department.
The Department shall also evaluate the entrepreneurial
assistance centers established under this Section and report
annually beginning on January 1, 2023, and on or before
January 1 of each year thereafter, the results of the
evaluation to the Governor and the General Assembly. The
report shall discuss the extent to which the centers serve
minority group members, women, individuals with a disability,
dislocated workers, veterans, and youth entrepreneurs; the
extent to which the training program is coordinated with other
assistance programs targeted to small and new businesses; the
ability of the program to leverage other sources of funding
and support; and the success of the program in aiding
entrepreneurs to start up new businesses, including the number
of new business start-ups resulting from the program. The
report shall recommend changes and improvements in the

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training program and in the quality of supplemental technical
assistance offered to graduates of the training programs. The
report shall be made available to the public on the
Department's website. Between evaluation due dates, the
Department shall maintain the necessary records and data
required to satisfy the evaluation requirements.
(h) For purposes of this Section:
"Entrepreneurship assistance center" or "center" means the
business development centers or programs which provide
assistance to primarily minority group members, women,
individuals with a disability, dislocated workers, veterans,
and youth entrepreneurs under this Section.
"Disability" means, with respect to an individual: (i) a
physical or mental impairment that substantially limits one or
more of the major life activities of an individual; (ii) a
record of such an impairment; or (iii) being regarded as
having an impairment.
"Minority business enterprise" has the same meaning as
provided for "minority-owned business" under Section 2 of the
Business Enterprise for Minorities, Women, and Persons with
Disabilities Act.
"Minority group member" has the same meaning as provided
for "minority person" under Section 2 of the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act.
"Women-owned business enterprise" has the same meaning as

HB5640 Enrolled - 24 - LRB103 38934 KTG 69071 b
provided for "women-owned business" under Section 2 of the
Business Enterprise for Minorities, Women, and Persons with
Disabilities Act.
"Veteran" means a person who served in and who has
received an honorable or general discharge from, the United
States Army, Navy, Air Force, Space Force, Marines, Coast
Guard, or reserves thereof, or who served in the Army National
Guard, Air National Guard, or Illinois National Guard.
"Youth entrepreneur" means a person who is between the
ages of 16 and 29 years old and is seeking community support to
start a business in Illinois.
(Source: P.A. 102-272, eff. 1-1-22; 102-821, eff. 1-1-23;
103-154, eff. 6-30-23.)
Section 35. The Illinois Procurement Code is amended by
changing Section 45-57 as follows:
(30 ILCS 500/45-57)
Sec. 45-57. Veterans.
(a) Set-aside goal. It is the goal of the State to promote
and encourage the continued economic development of small
businesses owned and controlled by qualified veterans and that
qualified service-disabled veteran-owned small businesses
(referred to as SDVOSB) and veteran-owned small businesses
(referred to as VOSB) participate in the State's procurement
process as both prime contractors and subcontractors. Not less

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than 3% of the total dollar amount of State contracts, as
defined by the Commission on Equity and Inclusion, shall be
established as a goal to be awarded to SDVOSB and VOSB. That
portion of a contract under which the contractor subcontracts
with a SDVOSB or VOSB may be counted toward the goal of this
subsection. The Commission on Equity and Inclusion shall adopt
rules to implement compliance with this subsection by all
State agencies.
(b) Fiscal year reports. By each November 1, each chief
procurement officer shall report to the Commission on Equity
and Inclusion on all of the following for the immediately
preceding fiscal year, and by each March 1 the Commission on
Equity and Inclusion shall compile and report that information
to the General Assembly:
(1) The total number of VOSB, and the number of
SDVOSB, who submitted bids for contracts under this Code.
(2) The total number of VOSB, and the number of
SDVOSB, who entered into contracts with the State under
this Code and the total value of those contracts.
(b-5) The Commission on Equity and Inclusion shall submit
an annual report to the Governor and the General Assembly that
shall include the following:
(1) a year-by-year comparison of the number of
certifications the State has issued to veteran-owned small
businesses and service-disabled veteran-owned small
businesses;

HB5640 Enrolled - 26 - LRB103 38934 KTG 69071 b
(2) the obstacles, if any, the Commission on Equity
and Inclusion faces when certifying veteran-owned
businesses and possible rules or changes to rules to
address those issues;
(3) a year-by-year comparison of awarded contracts to
certified veteran-owned small businesses and
service-disabled veteran-owned small businesses; and
(4) any other information that the Commission on
Equity and Inclusion deems necessary to assist
veteran-owned small businesses and service-disabled
veteran-owned small businesses to become certified with
the State.
The Commission on Equity and Inclusion shall conduct a
minimum of 2 outreach events per year to ensure that
veteran-owned small businesses and service-disabled
veteran-owned small businesses know about the procurement
opportunities and certification requirements with the State.
The Commission on Equity and Inclusion may receive
appropriations for outreach.
(c) Yearly review and recommendations. Each year, each
chief procurement officer shall review the progress of all
State agencies under its jurisdiction in meeting the goal
described in subsection (a), with input from statewide
veterans' service organizations and from the business
community, including businesses owned by qualified veterans,
and shall make recommendations to be included in the

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Commission on Equity and Inclusion's report to the General
Assembly regarding continuation, increases, or decreases of
the percentage goal. The recommendations shall be based upon
the number of businesses that are owned by qualified veterans
and on the continued need to encourage and promote businesses
owned by qualified veterans.
(d) Governor's recommendations. To assist the State in
reaching the goal described in subsection (a), the Governor
shall recommend to the General Assembly changes in programs to
assist businesses owned by qualified veterans.
(e) Definitions. As used in this Section:
"Armed forces of the United States" means the United
States Army, Navy, Air Force, Space Force, Marine Corps, Coast
Guard, or service in active duty as defined under 38 U.S.C.
Section 101. Service in the Merchant Marine that constitutes
active duty under Section 401 of federal Public Act 95-202
shall also be considered service in the armed forces for
purposes of this Section.
"Certification" means a determination made by the Illinois
Department of Veterans' Affairs and the Commission on Equity
and Inclusion that a business entity is a qualified
service-disabled veteran-owned small business or a qualified
veteran-owned small business for whatever purpose. A SDVOSB or
VOSB owned and controlled by women, minorities, or persons
with disabilities, as those terms are defined in Section 2 of
the Business Enterprise for Minorities, Women, and Persons

HB5640 Enrolled - 28 - LRB103 38934 KTG 69071 b
with Disabilities Act, may also select and designate whether
that business is to be certified as a "women-owned business",
"minority-owned business", or "business owned by a person with
a disability", as defined in Section 2 of the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act.
"Control" means the exclusive, ultimate, majority, or sole
control of the business, including but not limited to capital
investment and all other financial matters, property,
acquisitions, contract negotiations, legal matters,
officer-director-employee selection and comprehensive hiring,
operation responsibilities, cost-control matters, income and
dividend matters, financial transactions, and rights of other
shareholders or joint partners. Control shall be real,
substantial, and continuing, not pro forma. Control shall
include the power to direct or cause the direction of the
management and policies of the business and to make the
day-to-day as well as major decisions in matters of policy,
management, and operations. Control shall be exemplified by
possessing the requisite knowledge and expertise to run the
particular business, and control shall not include simple
majority or absentee ownership.
"Qualified service-disabled veteran" means a veteran who
has been found to have 10% or more service-connected
disability by the United States Department of Veterans Affairs
or the United States Department of Defense.

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"Qualified service-disabled veteran-owned small business"
or "SDVOSB" means a small business (i) that is at least 51%
owned by one or more qualified service-disabled veterans
living in Illinois or, in the case of a corporation, at least
51% of the stock of which is owned by one or more qualified
service-disabled veterans living in Illinois; (ii) that has
its home office in Illinois; and (iii) for which items (i) and
(ii) are factually verified annually by the Commission on
Equity and Inclusion.
"Qualified veteran-owned small business" or "VOSB" means a
small business (i) that is at least 51% owned by one or more
qualified veterans living in Illinois or, in the case of a
corporation, at least 51% of the stock of which is owned by one
or more qualified veterans living in Illinois; (ii) that has
its home office in Illinois; and (iii) for which items (i) and
(ii) are factually verified annually by the Commission on
Equity and Inclusion.
"Service-connected disability" means a disability incurred
in the line of duty in the active military, naval, or air
service as described in 38 U.S.C. 101(16).
"Small business" means a business that has annual gross
sales of less than $150,000,000 as evidenced by the federal
income tax return of the business. A firm with gross sales in
excess of this cap may apply to the Commission on Equity and
Inclusion for certification for a particular contract if the
firm can demonstrate that the contract would have significant

HB5640 Enrolled - 30 - LRB103 38934 KTG 69071 b
impact on SDVOSB or VOSB as suppliers or subcontractors or in
employment of veterans or service-disabled veterans.
"State agency" has the meaning provided in Section
1-15.100 of this Code.
"Time of hostilities with a foreign country" means any
period of time in the past, present, or future during which a
declaration of war by the United States Congress has been or is
in effect or during which an emergency condition has been or is
in effect that is recognized by the issuance of a Presidential
proclamation or a Presidential executive order and in which
the armed forces expeditionary medal or other campaign service
medals are awarded according to Presidential executive order.
"Veteran" means a person who (i) has been a member of the
armed forces of the United States or, while a citizen of the
United States, was a member of the armed forces of allies of
the United States in time of hostilities with a foreign
country and (ii) has served under one or more of the following
conditions: (a) the veteran served a total of at least 6
months; (b) the veteran served for the duration of hostilities
regardless of the length of the engagement; (c) the veteran
was discharged on the basis of hardship; or (d) the veteran was
released from active duty because of a service connected
disability and was discharged under honorable conditions.
(f) Certification program. The Illinois Department of
Veterans' Affairs and the Commission on Equity and Inclusion
shall work together to devise a certification procedure to

HB5640 Enrolled - 31 - LRB103 38934 KTG 69071 b
assure that businesses taking advantage of this Section are
legitimately classified as qualified service-disabled
veteran-owned small businesses or qualified veteran-owned
small businesses.
The Commission on Equity and Inclusion shall:
(1) compile and maintain a comprehensive list of
certified veteran-owned small businesses and
service-disabled veteran-owned small businesses;
(2) assist veteran-owned small businesses and
service-disabled veteran-owned small businesses in
complying with the procedures for bidding on State
contracts;
(3) provide training for State agencies regarding the
goal setting process and compliance with veteran-owned
small business and service-disabled veteran-owned small
business goals; and
(4) implement and maintain an electronic portal on the
Commission on Equity and Inclusion's website for the
purpose of completing and submitting veteran-owned small
business and service-disabled veteran-owned small business
certificates.
The Commission on Equity and Inclusion, in consultation
with the Department of Veterans' Affairs, may develop programs
and agreements to encourage cities, counties, towns,
townships, and other certifying entities to adopt uniform
certification procedures and certification recognition

HB5640 Enrolled - 32 - LRB103 38934 KTG 69071 b
programs.
(f-5) A business shall be certified by the Commission on
Equity and Inclusion as a service-disabled veteran-owned small
business or a veteran-owned small business for purposes of
this Section if the Commission on Equity and Inclusion
determines that the business has been certified as a
service-disabled veteran-owned small business or a
veteran-owned small business by the Vets First Verification
Program of the United States Department of Veterans Affairs,
and the business has provided to the Commission on Equity and
Inclusion the following:
(1) documentation showing certification as a
service-disabled veteran-owned small business or a
veteran-owned small business by the Vets First
Verification Program of the United States Department of
Veterans Affairs;
(2) proof that the business has its home office in
Illinois; and
(3) proof that the qualified veterans or qualified
service-disabled veterans live in the State of Illinois.
The policies of the Commission on Equity and Inclusion
regarding recognition of the Vets First Verification Program
of the United States Department of Veterans Affairs shall be
reviewed annually by the Commission on Equity and Inclusion,
and recognition of service-disabled veteran-owned small
businesses and veteran-owned small businesses certified by the

HB5640 Enrolled - 33 - LRB103 38934 KTG 69071 b
Vets First Verification Program of the United States
Department of Veterans Affairs may be discontinued by the
Commission on Equity and Inclusion by rule upon a finding that
the certification standards of the Vets First Verification
Program of the United States Department of Veterans Affairs do
not meet the certification requirements established by the
Commission on Equity and Inclusion.
(g) Penalties.
(1) Administrative penalties. The chief procurement
officers appointed pursuant to Section 10-20 shall suspend
any person who commits a violation of Section 17-10.3 or
subsection (d) of Section 33E-6 of the Criminal Code of
2012 relating to this Section from bidding on, or
participating as a contractor, subcontractor, or supplier
in, any State contract or project for a period of not less
than 3 years, and, if the person is certified as a
service-disabled veteran-owned small business or a
veteran-owned small business, then the Commission on
Equity and Inclusion shall revoke the business's
certification for a period of not less than 3 years. An
additional or subsequent violation shall extend the
periods of suspension and revocation for a period of not
less than 5 years. The suspension and revocation shall
apply to the principals of the business and any subsequent
business formed or financed by, or affiliated with, those
principals.

HB5640 Enrolled - 34 - LRB103 38934 KTG 69071 b
(2) Reports of violations. Each State agency shall
report any alleged violation of Section 17-10.3 or
subsection (d) of Section 33E-6 of the Criminal Code of
2012 relating to this Section to the chief procurement
officers appointed pursuant to Section 10-20. The chief
procurement officers appointed pursuant to Section 10-20
shall subsequently report all such alleged violations to
the Attorney General, who shall determine whether to bring
a civil action against any person for the violation.
(3) List of suspended persons. The chief procurement
officers appointed pursuant to Section 10-20 shall monitor
the status of all reported violations of Section 17-10.3
or subsection (d) of Section 33E-6 of the Criminal Code of
1961 or the Criminal Code of 2012 relating to this Section
and shall maintain and make available to all State
agencies a central listing of all persons that committed
violations resulting in suspension.
(4) Use of suspended persons. During the period of a
person's suspension under paragraph (1) of this
subsection, a State agency shall not enter into any
contract with that person or with any contractor using the
services of that person as a subcontractor.
(5) Duty to check list. Each State agency shall check
the central listing provided by the chief procurement
officers appointed pursuant to Section 10-20 under
paragraph (3) of this subsection to verify that a person

HB5640 Enrolled - 35 - LRB103 38934 KTG 69071 b
being awarded a contract by that State agency, or to be
used as a subcontractor or supplier on a contract being
awarded by that State agency, is not under suspension
pursuant to paragraph (1) of this subsection.
(h) On and after the effective date of this amendatory Act
of the 102nd General Assembly, all powers, duties, rights, and
responsibilities of the Department of Central Management
Services with respect to the requirements of this Section are
transferred to the Commission on Equity and Inclusion.
All books, records, papers, documents, property (real and
personal), contracts, causes of action, and pending business
pertaining to the powers, duties, rights, and responsibilities
transferred by this amendatory Act from the Department of
Central Management Services to the Commission on Equity and
Inclusion, including, but not limited to, material in
electronic or magnetic format and necessary computer hardware
and software, shall be transferred to the Commission on Equity
and Inclusion.
The powers, duties, rights, and responsibilities
transferred from the Department of Central Management Services
by this amendatory Act shall be vested in and shall be
exercised by the Commission on Equity and Inclusion.
Whenever reports or notices are now required to be made or
given or papers or documents furnished or served by any person
to or upon the Department of Central Management Services in
connection with any of the powers, duties, rights, and

HB5640 Enrolled - 36 - LRB103 38934 KTG 69071 b
responsibilities transferred by this amendatory Act, the same
shall be made, given, furnished, or served in the same manner
to or upon the Commission on Equity and Inclusion.
This amendatory Act of the 102nd General Assembly does not
affect any act done, ratified, or canceled or any right
occurring or established or any action or proceeding had or
commenced in an administrative, civil, or criminal cause by
the Department of Central Management Services before this
amendatory Act takes effect; such actions or proceedings may
be prosecuted and continued by the Commission on Equity and
Inclusion.
Any rules of the Department of Central Management Services
that relate to its powers, duties, rights, and
responsibilities under this Section and are in full force on
the effective date of this amendatory Act of the 102nd General
Assembly shall become the rules of the Commission on Equity
and Inclusion. This amendatory Act does not affect the
legality of any such rules in the Illinois Administrative
Code. Any proposed rules filed with the Secretary of State by
the Department of Central Management Services that are pending
in the rulemaking process on the effective date of this
amendatory Act and pertain to the powers, duties, rights, and
responsibilities transferred, shall be deemed to have been
filed by the Commission on Equity and Inclusion. As soon as
practicable hereafter, the Commission on Equity and Inclusion
shall revise and clarify the rules transferred to it under

HB5640 Enrolled - 37 - LRB103 38934 KTG 69071 b
this amendatory Act to reflect the reorganization of powers,
duties, rights, and responsibilities affected by this
amendatory Act, using the procedures for recodification of
rules available under the Illinois Administrative Procedure
Act, except that existing title, part, and section numbering
for the affected rules may be retained. The Commission on
Equity and Inclusion may propose and adopt under the Illinois
Administrative Procedure Act such other rules of the
Department of Central Management Services that will now be
administered by the Commission on Equity and Inclusion.
(Source: P.A. 102-166, eff. 7-26-21; 102-671, eff. 11-30-21;
103-570, eff. 1-1-24.)
Section 40. The Use Tax Act is amended by changing Section
3-5 as follows:
(35 ILCS 105/3-5)
Sec. 3-5. Exemptions. Use of the following tangible
personal property is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.

HB5640 Enrolled - 38 - LRB103 38934 KTG 69071 b
(2) Personal property purchased by a not-for-profit
Illinois county fair association for use in conducting,
operating, or promoting the county fair.
(3) Personal property purchased by a not-for-profit arts
or cultural organization that establishes, by proof required
by the Department by rule, that it has received an exemption
under Section 501(c)(3) of the Internal Revenue Code and that
is organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35), however, an entity
otherwise eligible for this exemption shall not make tax-free
purchases unless it has an active identification number issued
by the Department.
(4) Except as otherwise provided in this Act, personal
property purchased by a governmental body, by a corporation,
society, association, foundation, or institution organized and
operated exclusively for charitable, religious, or educational
purposes, or by a not-for-profit corporation, society,
association, foundation, institution, or organization that has
no compensated officers or employees and that is organized and
operated primarily for the recreation of persons 55 years of

HB5640 Enrolled - 39 - LRB103 38934 KTG 69071 b
age or older. A limited liability company may qualify for the
exemption under this paragraph only if the limited liability
company is organized and operated exclusively for educational
purposes. On and after July 1, 1987, however, no entity
otherwise eligible for this exemption shall make tax-free
purchases unless it has an active exemption identification
number issued by the Department.
(5) Until July 1, 2003, a passenger car that is a
replacement vehicle to the extent that the purchase price of
the car is subject to the Replacement Vehicle Tax.
(6) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new
and used, and including that manufactured on special order,
certified by the purchaser to be used primarily for graphic
arts production, and including machinery and equipment
purchased for lease. Equipment includes chemicals or chemicals
acting as catalysts but only if the chemicals or chemicals
acting as catalysts effect a direct and immediate change upon
a graphic arts product. Beginning on July 1, 2017, graphic
arts machinery and equipment is included in the manufacturing
and assembling machinery and equipment exemption under
paragraph (18).
(7) Farm chemicals.
(8) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the

HB5640 Enrolled - 40 - LRB103 38934 KTG 69071 b
United States of America, or the government of any foreign
country, and bullion.
(9) Personal property purchased from a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(10) A motor vehicle that is used for automobile renting,
as defined in the Automobile Renting Occupation and Use Tax
Act.
(11) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required
to be registered under Section 3-809 of the Illinois Vehicle
Code, but excluding other motor vehicles required to be
registered under the Illinois Vehicle Code. Horticultural
polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and
equipment under this item (11). Agricultural chemical tender
tanks and dry boxes shall include units sold separately from a
motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price

HB5640 Enrolled - 41 - LRB103 38934 KTG 69071 b
of the tender is separately stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment, including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals.
Beginning on January 1, 2024, farm machinery and equipment
also includes electrical power generation equipment used
primarily for production agriculture.
This item (11) is exempt from the provisions of Section
3-90.
(12) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a flight
destined for or returning from a location or locations outside

HB5640 Enrolled - 42 - LRB103 38934 KTG 69071 b
the United States without regard to previous or subsequent
domestic stopovers.
Beginning July 1, 2013, fuel and petroleum products sold
to or used by an air carrier, certified by the carrier to be
used for consumption, shipment, or storage in the conduct of
its business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports
at least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
(13) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages purchased at retail from a retailer, to the
extent that the proceeds of the service charge are in fact
turned over as tips or as a substitute for tips to the
employees who participate directly in preparing, serving,
hosting or cleaning up the food or beverage function with
respect to which the service charge is imposed.
(14) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of
rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
pipe and tubular goods, including casing and drill strings,
(iii) pumps and pump-jack units, (iv) storage tanks and flow
lines, (v) any individual replacement part for oil field

HB5640 Enrolled - 43 - LRB103 38934 KTG 69071 b
exploration, drilling, and production equipment, and (vi)
machinery and equipment purchased for lease; but excluding
motor vehicles required to be registered under the Illinois
Vehicle Code.
(15) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including
that manufactured on special order, certified by the purchaser
to be used primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
(16) Until July 1, 2028, coal and aggregate exploration,
mining, off-highway hauling, processing, maintenance, and
reclamation equipment, including replacement parts and
equipment, and including equipment purchased for lease, but
excluding motor vehicles required to be registered under the
Illinois Vehicle Code. The changes made to this Section by
Public Act 97-767 apply on and after July 1, 2003, but no claim
for credit or refund is allowed on or after August 16, 2013
(the effective date of Public Act 98-456) for such taxes paid
during the period beginning July 1, 2003 and ending on August
16, 2013 (the effective date of Public Act 98-456).
(17) Until July 1, 2003, distillation machinery and
equipment, sold as a unit or kit, assembled or installed by the
retailer, certified by the user to be used only for the
production of ethyl alcohol that will be used for consumption
as motor fuel or as a component of motor fuel for the personal
use of the user, and not subject to sale or resale.

HB5640 Enrolled - 44 - LRB103 38934 KTG 69071 b
(18) Manufacturing and assembling machinery and equipment
used primarily in the process of manufacturing or assembling
tangible personal property for wholesale or retail sale or
lease, whether that sale or lease is made directly by the
manufacturer or by some other person, whether the materials
used in the process are owned by the manufacturer or some other
person, or whether that sale or lease is made apart from or as
an incident to the seller's engaging in the service occupation
of producing machines, tools, dies, jigs, patterns, gauges, or
other similar items of no commercial value on special order
for a particular purchaser. The exemption provided by this
paragraph (18) includes production related tangible personal
property, as defined in Section 3-50, purchased on or after
July 1, 2019. The exemption provided by this paragraph (18)
does not include machinery and equipment used in (i) the
generation of electricity for wholesale or retail sale; (ii)
the generation or treatment of natural or artificial gas for
wholesale or retail sale that is delivered to customers
through pipes, pipelines, or mains; or (iii) the treatment of
water for wholesale or retail sale that is delivered to
customers through pipes, pipelines, or mains. The provisions
of Public Act 98-583 are declaratory of existing law as to the
meaning and scope of this exemption. Beginning on July 1,
2017, the exemption provided by this paragraph (18) includes,
but is not limited to, graphic arts machinery and equipment,
as defined in paragraph (6) of this Section.

HB5640 Enrolled - 45 - LRB103 38934 KTG 69071 b
(19) Personal property delivered to a purchaser or
purchaser's donee inside Illinois when the purchase order for
that personal property was received by a florist located
outside Illinois who has a florist located inside Illinois
deliver the personal property.
(20) Semen used for artificial insemination of livestock
for direct agricultural production.
(21) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (21) is exempt from the
provisions of Section 3-90, and the exemption provided for
under this item (21) applies for all periods beginning May 30,
1995, but no claim for credit or refund is allowed on or after
January 1, 2008 for such taxes paid during the period
beginning May 30, 2000 and ending on January 1, 2008.
(22) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of

HB5640 Enrolled - 46 - LRB103 38934 KTG 69071 b
the Retailers' Occupation Tax Act. If the equipment is leased
in a manner that does not qualify for this exemption or is used
in any other non-exempt manner, the lessor shall be liable for
the tax imposed under this Act or the Service Use Tax Act, as
the case may be, based on the fair market value of the property
at the time the non-qualifying use occurs. No lessor shall
collect or attempt to collect an amount (however designated)
that purports to reimburse that lessor for the tax imposed by
this Act or the Service Use Tax Act, as the case may be, if the
tax has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall
have a legal right to claim a refund of that amount from the
lessor. If, however, that amount is not refunded to the lessee
for any reason, the lessor is liable to pay that amount to the
Department.
(23) Personal property purchased by a lessor who leases
the property, under a lease of one year or longer executed or
in effect at the time the lessor would otherwise be subject to
the tax imposed by this Act, to a governmental body that has
been issued an active sales tax exemption identification
number by the Department under Section 1g of the Retailers'
Occupation Tax Act. If the property is leased in a manner that
does not qualify for this exemption or used in any other
non-exempt manner, the lessor shall be liable for the tax
imposed under this Act or the Service Use Tax Act, as the case
may be, based on the fair market value of the property at the

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time the non-qualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax
has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall
have a legal right to claim a refund of that amount from the
lessor. If, however, that amount is not refunded to the lessee
for any reason, the lessor is liable to pay that amount to the
Department.
(24) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated
for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(25) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in
the performance of infrastructure repairs in this State,
including, but not limited to, municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,

HB5640 Enrolled - 48 - LRB103 38934 KTG 69071 b
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois when such repairs are initiated on facilities located
in the declared disaster area within 6 months after the
disaster.
(26) Beginning July 1, 1999, game or game birds purchased
at a "game breeding and hunting preserve area" as that term is
used in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-90.
(27) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the
Department to be organized and operated exclusively for
educational purposes. For purposes of this exemption, "a
corporation, limited liability company, society, association,
foundation, or institution organized and operated exclusively
for educational purposes" means all tax-supported public
schools, private schools that offer systematic instruction in
useful branches of learning by methods common to public
schools and that compare favorably in their scope and
intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes
organized and operated exclusively to provide a course of

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study of not less than 6 weeks duration and designed to prepare
individuals to follow a trade or to pursue a manual,
technical, mechanical, industrial, business, or commercial
occupation.
(28) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-90.
(29) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and
other items, and replacement parts for these machines.
Beginning January 1, 2002 and through June 30, 2003, machines
and parts for machines used in commercial, coin-operated
amusement and vending business if a use or occupation tax is
paid on the gross receipts derived from the use of the

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commercial, coin-operated amusement and vending machines. This
paragraph is exempt from the provisions of Section 3-90.
(30) Beginning January 1, 2001 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
soft drinks, and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.
(31) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), computers and communications equipment
utilized for any hospital purpose and equipment used in the
diagnosis, analysis, or treatment of hospital patients
purchased by a lessor who leases the equipment, under a lease
of one year or longer executed or in effect at the time the
lessor would otherwise be subject to the tax imposed by this
Act, to a hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the equipment is leased
in a manner that does not qualify for this exemption or is used

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

HB5640 Enrolled - 52 - LRB103 38934 KTG 69071 b
the time the nonqualifying use occurs. No lessor shall collect
or attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax
has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall
have a legal right to claim a refund of that amount from the
lessor. If, however, that amount is not refunded to the lessee
for any reason, the lessor is liable to pay that amount to the
Department. This paragraph is exempt from the provisions of
Section 3-90.
(33) On and after July 1, 2003 and through June 30, 2004,
the use in this State of motor vehicles of the second division
with a gross vehicle weight in excess of 8,000 pounds and that
are subject to the commercial distribution fee imposed under
Section 3-815.1 of the Illinois Vehicle Code. Beginning on
July 1, 2004 and through June 30, 2005, the use in this State
of motor vehicles of the second division: (i) with a gross
vehicle weight rating in excess of 8,000 pounds; (ii) that are
subject to the commercial distribution fee imposed under
Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
are primarily used for commercial purposes. Through June 30,
2005, this exemption applies to repair and replacement parts
added after the initial purchase of such a motor vehicle if
that motor vehicle is used in a manner that would qualify for
the rolling stock exemption otherwise provided for in this

HB5640 Enrolled - 53 - LRB103 38934 KTG 69071 b
Act. For purposes of this paragraph, the term "used for
commercial purposes" means the transportation of persons or
property in furtherance of any commercial or industrial
enterprise, whether for-hire or not.
(34) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued
under Title IV of the Environmental Protection Act. This
paragraph is exempt from the provisions of Section 3-90.
(35) Beginning January 1, 2010 and continuing through
December 31, 2029, materials, parts, equipment, components,
and furnishings incorporated into or upon an aircraft as part
of the modification, refurbishment, completion, replacement,
repair, or maintenance of the aircraft. This exemption
includes consumable supplies used in the modification,
refurbishment, completion, replacement, repair, and
maintenance of aircraft. However, until January 1, 2024, this
exemption excludes any materials, parts, equipment,
components, and consumable supplies used in the modification,
replacement, repair, and maintenance of aircraft engines or
power plants, whether such engines or power plants are
installed or uninstalled upon any such aircraft. "Consumable
supplies" include, but are not limited to, adhesive, tape,
sandpaper, general purpose lubricants, cleaning solution,

HB5640 Enrolled - 54 - LRB103 38934 KTG 69071 b
latex gloves, and protective films.
Beginning January 1, 2010 and continuing through December
31, 2023, this exemption applies only to the use of qualifying
tangible personal property by persons who modify, refurbish,
complete, repair, replace, or maintain aircraft and who (i)
hold an Air Agency Certificate and are empowered to operate an
approved repair station by the Federal Aviation
Administration, (ii) have a Class IV Rating, and (iii) conduct
operations in accordance with Part 145 of the Federal Aviation
Regulations. From January 1, 2024 through December 31, 2029,
this exemption applies only to the use of qualifying tangible
personal property by: (A) persons who modify, refurbish,
complete, repair, replace, or maintain aircraft and who (i)
hold an Air Agency Certificate and are empowered to operate an
approved repair station by the Federal Aviation
Administration, (ii) have a Class IV Rating, and (iii) conduct
operations in accordance with Part 145 of the Federal Aviation
Regulations; and (B) persons who engage in the modification,
replacement, repair, and maintenance of aircraft engines or
power plants without regard to whether or not those persons
meet the qualifications of item (A).
The exemption does not include aircraft operated by a
commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part
129 of the Federal Aviation Regulations. The changes made to
this paragraph (35) by Public Act 98-534 are declarative of

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existing law. It is the intent of the General Assembly that the
exemption under this paragraph (35) applies continuously from
January 1, 2010 through December 31, 2024; however, no claim
for credit or refund is allowed for taxes paid as a result of
the disallowance of this exemption on or after January 1, 2015
and prior to February 5, 2020 (the effective date of Public Act
101-629).
(36) Tangible personal property purchased by a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt
instruments issued by the public-facilities corporation in
connection with the development of the municipal convention
hall. This exemption includes existing public-facilities
corporations as provided in Section 11-65-25 of the Illinois
Municipal Code. This paragraph is exempt from the provisions
of Section 3-90.
(37) Beginning January 1, 2017 and through December 31,
2026, menstrual pads, tampons, and menstrual cups.
(38) Merchandise that is subject to the Rental Purchase
Agreement Occupation and Use Tax. The purchaser must certify

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that the item is purchased to be rented subject to a
rental-purchase rental purchase agreement, as defined in the
Rental-Purchase Rental Purchase Agreement Act, and provide
proof of registration under the Rental Purchase Agreement
Occupation and Use Tax Act. This paragraph is exempt from the
provisions of Section 3-90.
(39) Tangible personal property purchased by a purchaser
who is exempt from the tax imposed by this Act by operation of
federal law. This paragraph is exempt from the provisions of
Section 3-90.
(40) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor
of the owner, operator, or tenant. Data centers that would
have qualified for a certificate of exemption prior to January
1, 2020 had Public Act 101-31 been in effect may apply for and
obtain an exemption for subsequent purchases of computer
equipment or enabling software purchased or leased to upgrade,
supplement, or replace computer equipment or enabling software
purchased or leased in the original investment that would have
qualified.
The Department of Commerce and Economic Opportunity shall
grant a certificate of exemption under this item (40) to

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qualified data centers as defined by Section 605-1025 of the
Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (40):
"Data center" means a building or a series of
buildings rehabilitated or constructed to house working
servers in one physical location or multiple sites within
the State of Illinois.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks; cabinets;
telecommunications cabling infrastructure; raised floor
systems; peripheral components or systems; software;
mechanical, electrical, or plumbing systems; battery
systems; cooling systems and towers; temperature control
systems; other cabling; and other data center
infrastructure equipment and systems necessary to operate
qualified tangible personal property, including fixtures;
and component parts of any of the foregoing, including
installation, maintenance, repair, refurbishment, and
replacement of qualified tangible personal property to
generate, transform, transmit, distribute, or manage
electricity necessary to operate qualified tangible

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personal property; and all other tangible personal
property that is essential to the operations of a computer
data center. The term "qualified tangible personal
property" also includes building materials physically
incorporated into in to the qualifying data center. To
document the exemption allowed under this Section, the
retailer must obtain from the purchaser a copy of the
certificate of eligibility issued by the Department of
Commerce and Economic Opportunity.
This item (40) is exempt from the provisions of Section
3-90.
(41) Beginning July 1, 2022, breast pumps, breast pump
collection and storage supplies, and breast pump kits. This
item (41) is exempt from the provisions of Section 3-90. As
used in this item (41):
"Breast pump" means an electrically controlled or
manually controlled pump device designed or marketed to be
used to express milk from a human breast during lactation,
including the pump device and any battery, AC adapter, or
other power supply unit that is used to power the pump
device and is packaged and sold with the pump device at the
time of sale.
"Breast pump collection and storage supplies" means
items of tangible personal property designed or marketed
to be used in conjunction with a breast pump to collect
milk expressed from a human breast and to store collected

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

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manufacturer or distributor.
(42) Tangible personal property sold by or on behalf of
the State Treasurer pursuant to the Revised Uniform Unclaimed
Property Act. This item (42) is exempt from the provisions of
Section 3-90.
(43) Beginning on January 1, 2024, tangible personal
property purchased by an active duty member of the armed
forces of the United States who presents valid military
identification and purchases the property using a form of
payment where the federal government is the payor. The member
of the armed forces must complete, at the point of sale, a form
prescribed by the Department of Revenue documenting that the
transaction is eligible for the exemption under this
paragraph. Retailers must keep the form as documentation of
the exemption in their records for a period of not less than 6
years. "Armed forces of the United States" means the United
States Army, Navy, Air Force, Space Force, Marine Corps, or
Coast Guard. This paragraph is exempt from the provisions of
Section 3-90.
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
revised 12-12-23.)

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Section 45. The Service Use Tax Act is amended by changing
Section 3-5 as follows:
(35 ILCS 110/3-5)
Sec. 3-5. Exemptions. Use of the following tangible
personal property is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
(2) Personal property purchased by a non-profit Illinois
county fair association for use in conducting, operating, or
promoting the county fair.
(3) Personal property purchased by a not-for-profit arts
or cultural organization that establishes, by proof required
by the Department by rule, that it has received an exemption
under Section 501(c)(3) of the Internal Revenue Code and that
is organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,

HB5640 Enrolled - 62 - LRB103 38934 KTG 69071 b
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35), however, an entity
otherwise eligible for this exemption shall not make tax-free
purchases unless it has an active identification number issued
by the Department.
(4) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new
and used, and including that manufactured on special order or
purchased for lease, certified by the purchaser to be used
primarily for graphic arts production. Equipment includes
chemicals or chemicals acting as catalysts but only if the
chemicals or chemicals acting as catalysts effect a direct and
immediate change upon a graphic arts product. Beginning on
July 1, 2017, graphic arts machinery and equipment is included
in the manufacturing and assembling machinery and equipment
exemption under Section 2 of this Act.
(6) Personal property purchased from a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(7) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the

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

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sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals.
Beginning on January 1, 2024, farm machinery and equipment
also includes electrical power generation equipment used
primarily for production agriculture.
This item (7) is exempt from the provisions of Section
3-75.
(8) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a flight
destined for or returning from a location or locations outside
the United States without regard to previous or subsequent
domestic stopovers.
Beginning July 1, 2013, fuel and petroleum products sold
to or used by an air carrier, certified by the carrier to be
used for consumption, shipment, or storage in the conduct of
its business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports
at least one individual or package for hire from the city of
origination to the city of final destination on the same

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

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equipment purchased for lease.
(12) Until July 1, 2028, coal and aggregate exploration,
mining, off-highway hauling, processing, maintenance, and
reclamation equipment, including replacement parts and
equipment, and including equipment purchased for lease, but
excluding motor vehicles required to be registered under the
Illinois Vehicle Code. The changes made to this Section by
Public Act 97-767 apply on and after July 1, 2003, but no claim
for credit or refund is allowed on or after August 16, 2013
(the effective date of Public Act 98-456) for such taxes paid
during the period beginning July 1, 2003 and ending on August
16, 2013 (the effective date of Public Act 98-456).
(13) Semen used for artificial insemination of livestock
for direct agricultural production.
(14) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (14) is exempt from the
provisions of Section 3-75, and the exemption provided for
under this item (14) applies for all periods beginning May 30,
1995, but no claim for credit or refund is allowed on or after
January 1, 2008 (the effective date of Public Act 95-88) for
such taxes paid during the period beginning May 30, 2000 and
ending on January 1, 2008 (the effective date of Public Act

HB5640 Enrolled - 67 - LRB103 38934 KTG 69071 b
95-88).
(15) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the equipment is leased
in a manner that does not qualify for this exemption or is used
in any other non-exempt manner, the lessor shall be liable for
the tax imposed under this Act or the Use Tax Act, as the case
may be, based on the fair market value of the property at the
time the non-qualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Use Tax Act, as the case may be, if the tax has not
been paid by the lessor. If a lessor improperly collects any
such amount from the lessee, the lessee shall have a legal
right to claim a refund of that amount from the lessor. If,
however, that amount is not refunded to the lessee for any
reason, the lessor is liable to pay that amount to the
Department.
(16) Personal property purchased by a lessor who leases
the property, under a lease of one year or longer executed or

HB5640 Enrolled - 68 - LRB103 38934 KTG 69071 b
in effect at the time the lessor would otherwise be subject to
the tax imposed by this Act, to a governmental body that has
been issued an active tax exemption identification number by
the Department under Section 1g of the Retailers' Occupation
Tax Act. If the property is leased in a manner that does not
qualify for this exemption or is used in any other non-exempt
manner, the lessor shall be liable for the tax imposed under
this Act or the Use Tax Act, as the case may be, based on the
fair market value of the property at the time the
non-qualifying use occurs. No lessor shall collect or attempt
to collect an amount (however designated) that purports to
reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid
by the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that
amount is not refunded to the lessee for any reason, the lessor
is liable to pay that amount to the Department.
(17) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated
for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification

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number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(18) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in
the performance of infrastructure repairs in this State,
including, but not limited to, municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois when such repairs are initiated on facilities located
in the declared disaster area within 6 months after the
disaster.
(19) Beginning July 1, 1999, game or game birds purchased
at a "game breeding and hunting preserve area" as that term is
used in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-75.
(20) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the
Department to be organized and operated exclusively for
educational purposes. For purposes of this exemption, "a
corporation, limited liability company, society, association,

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foundation, or institution organized and operated exclusively
for educational purposes" means all tax-supported public
schools, private schools that offer systematic instruction in
useful branches of learning by methods common to public
schools and that compare favorably in their scope and
intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes
organized and operated exclusively to provide a course of
study of not less than 6 weeks duration and designed to prepare
individuals to follow a trade or to pursue a manual,
technical, mechanical, industrial, business, or commercial
occupation.
(21) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-75.

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(22) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and
other items, and replacement parts for these machines.
Beginning January 1, 2002 and through June 30, 2003, machines
and parts for machines used in commercial, coin-operated
amusement and vending business if a use or occupation tax is
paid on the gross receipts derived from the use of the
commercial, coin-operated amusement and vending machines. This
paragraph is exempt from the provisions of Section 3-75.
(23) Beginning August 23, 2001 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
soft drinks, and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.
(24) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), computers and communications equipment
utilized for any hospital purpose and equipment used in the

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

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subject to the tax imposed by this Act, to a governmental body
that has been issued an active tax exemption identification
number by the Department under Section 1g of the Retailers'
Occupation Tax Act. If the property is leased in a manner that
does not qualify for this exemption or is used in any other
nonexempt manner, the lessor shall be liable for the tax
imposed under this Act or the Use Tax Act, as the case may be,
based on the fair market value of the property at the time the
nonqualifying use occurs. No lessor shall collect or attempt
to collect an amount (however designated) that purports to
reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid
by the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that
amount is not refunded to the lessee for any reason, the lessor
is liable to pay that amount to the Department. This paragraph
is exempt from the provisions of Section 3-75.
(26) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued
under Title IV of the Environmental Protection Act. This
paragraph is exempt from the provisions of Section 3-75.
(27) Beginning January 1, 2010 and continuing through

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

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property by: (A) persons who modify, refurbish, complete,
repair, replace, or maintain aircraft and who (i) hold an Air
Agency Certificate and are empowered to operate an approved
repair station by the Federal Aviation Administration, (ii)
have a Class IV Rating, and (iii) conduct operations in
accordance with Part 145 of the Federal Aviation Regulations;
and (B) persons who engage in the modification, replacement,
repair, and maintenance of aircraft engines or power plants
without regard to whether or not those persons meet the
qualifications of item (A).
The exemption does not include aircraft operated by a
commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part
129 of the Federal Aviation Regulations. The changes made to
this paragraph (27) by Public Act 98-534 are declarative of
existing law. It is the intent of the General Assembly that the
exemption under this paragraph (27) applies continuously from
January 1, 2010 through December 31, 2024; however, no claim
for credit or refund is allowed for taxes paid as a result of
the disallowance of this exemption on or after January 1, 2015
and prior to February 5, 2020 (the effective date of Public Act
101-629).
(28) Tangible personal property purchased by a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but

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only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt
instruments issued by the public-facilities corporation in
connection with the development of the municipal convention
hall. This exemption includes existing public-facilities
corporations as provided in Section 11-65-25 of the Illinois
Municipal Code. This paragraph is exempt from the provisions
of Section 3-75.
(29) Beginning January 1, 2017 and through December 31,
2026, menstrual pads, tampons, and menstrual cups.
(30) Tangible personal property transferred to a purchaser
who is exempt from the tax imposed by this Act by operation of
federal law. This paragraph is exempt from the provisions of
Section 3-75.
(31) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor
of the owner, operator, or tenant. Data centers that would
have qualified for a certificate of exemption prior to January
1, 2020 had Public Act 101-31 been in effect, may apply for and

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

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infrastructure equipment and systems necessary to operate
qualified tangible personal property, including fixtures;
and component parts of any of the foregoing, including
installation, maintenance, repair, refurbishment, and
replacement of qualified tangible personal property to
generate, transform, transmit, distribute, or manage
electricity necessary to operate qualified tangible
personal property; and all other tangible personal
property that is essential to the operations of a computer
data center. The term "qualified tangible personal
property" also includes building materials physically
incorporated into in to the qualifying data center. To
document the exemption allowed under this Section, the
retailer must obtain from the purchaser a copy of the
certificate of eligibility issued by the Department of
Commerce and Economic Opportunity.
This item (31) is exempt from the provisions of Section
3-75.
(32) Beginning July 1, 2022, breast pumps, breast pump
collection and storage supplies, and breast pump kits. This
item (32) is exempt from the provisions of Section 3-75. As
used in this item (32):
"Breast pump" means an electrically controlled or
manually controlled pump device designed or marketed to be
used to express milk from a human breast during lactation,
including the pump device and any battery, AC adapter, or

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

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or distributor.
"Breast pump kit" means a kit that: (1) contains no
more than a breast pump, breast pump collection and
storage supplies, a rechargeable battery for operating the
breast pump, a breastmilk cooler, bottle stands, ice
packs, and a breast pump carrying case; and (2) is
pre-packaged as a breast pump kit by the breast pump
manufacturer or distributor.
(33) Tangible personal property sold by or on behalf of
the State Treasurer pursuant to the Revised Uniform Unclaimed
Property Act. This item (33) is exempt from the provisions of
Section 3-75.
(34) Beginning on January 1, 2024, tangible personal
property purchased by an active duty member of the armed
forces of the United States who presents valid military
identification and purchases the property using a form of
payment where the federal government is the payor. The member
of the armed forces must complete, at the point of sale, a form
prescribed by the Department of Revenue documenting that the
transaction is eligible for the exemption under this
paragraph. Retailers must keep the form as documentation of
the exemption in their records for a period of not less than 6
years. "Armed forces of the United States" means the United
States Army, Navy, Air Force, Space Force, Marine Corps, or
Coast Guard. This paragraph is exempt from the provisions of
Section 3-75.

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(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
revised 12-12-23.)
Section 50. The Service Occupation Tax Act is amended by
changing Section 3-5 as follows:
(35 ILCS 115/3-5)
Sec. 3-5. Exemptions. The following tangible personal
property is exempt from the tax imposed by this Act:
(1) Personal property sold by a corporation, society,
association, foundation, institution, or organization, other
than a limited liability company, that is organized and
operated as a not-for-profit service enterprise for the
benefit of persons 65 years of age or older if the personal
property was not purchased by the enterprise for the purpose
of resale by the enterprise.
(2) Personal property purchased by a not-for-profit
Illinois county fair association for use in conducting,
operating, or promoting the county fair.
(3) Personal property purchased by any not-for-profit arts
or cultural organization that establishes, by proof required
by the Department by rule, that it has received an exemption

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under Section 501(c)(3) of the Internal Revenue Code and that
is organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35), however, an entity
otherwise eligible for this exemption shall not make tax-free
purchases unless it has an active identification number issued
by the Department.
(4) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new
and used, and including that manufactured on special order or
purchased for lease, certified by the purchaser to be used
primarily for graphic arts production. Equipment includes
chemicals or chemicals acting as catalysts but only if the
chemicals or chemicals acting as catalysts effect a direct and
immediate change upon a graphic arts product. Beginning on
July 1, 2017, graphic arts machinery and equipment is included

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in the manufacturing and assembling machinery and equipment
exemption under Section 2 of this Act.
(6) Personal property sold by a teacher-sponsored student
organization affiliated with an elementary or secondary school
located in Illinois.
(7) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required
to be registered under Section 3-809 of the Illinois Vehicle
Code, but excluding other motor vehicles required to be
registered under the Illinois Vehicle Code. Horticultural
polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and
equipment under this item (7). Agricultural chemical tender
tanks and dry boxes shall include units sold separately from a
motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price
of the tender is separately stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be

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installed on farm machinery and equipment, including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals.
Beginning on January 1, 2024, farm machinery and equipment
also includes electrical power generation equipment used
primarily for production agriculture.
This item (7) is exempt from the provisions of Section
3-55.
(8) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a flight
destined for or returning from a location or locations outside
the United States without regard to previous or subsequent
domestic stopovers.
Beginning July 1, 2013, fuel and petroleum products sold

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to or used by an air carrier, certified by the carrier to be
used for consumption, shipment, or storage in the conduct of
its business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports
at least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
(9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages, to the extent that the proceeds of the
service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
(10) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of
rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
pipe and tubular goods, including casing and drill strings,
(iii) pumps and pump-jack units, (iv) storage tanks and flow
lines, (v) any individual replacement part for oil field
exploration, drilling, and production equipment, and (vi)
machinery and equipment purchased for lease; but excluding
motor vehicles required to be registered under the Illinois

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Vehicle Code.
(11) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including
that manufactured on special order, certified by the purchaser
to be used primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
(12) Until July 1, 2028, coal and aggregate exploration,
mining, off-highway hauling, processing, maintenance, and
reclamation equipment, including replacement parts and
equipment, and including equipment purchased for lease, but
excluding motor vehicles required to be registered under the
Illinois Vehicle Code. The changes made to this Section by
Public Act 97-767 apply on and after July 1, 2003, but no claim
for credit or refund is allowed on or after August 16, 2013
(the effective date of Public Act 98-456) for such taxes paid
during the period beginning July 1, 2003 and ending on August
16, 2013 (the effective date of Public Act 98-456).
(13) Beginning January 1, 1992 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
soft drinks and food that has been prepared for immediate
consumption) and prescription and non-prescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who

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resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.
(14) Semen used for artificial insemination of livestock
for direct agricultural production.
(15) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (15) is exempt from the
provisions of Section 3-55, and the exemption provided for
under this item (15) applies for all periods beginning May 30,
1995, but no claim for credit or refund is allowed on or after
January 1, 2008 (the effective date of Public Act 95-88) for
such taxes paid during the period beginning May 30, 2000 and
ending on January 1, 2008 (the effective date of Public Act
95-88).
(16) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor
who leases the equipment, under a lease of one year or longer
executed or in effect at the time of the purchase, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of

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the Retailers' Occupation Tax Act.
(17) Personal property sold to a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time of the purchase, to a governmental body that
has been issued an active tax exemption identification number
by the Department under Section 1g of the Retailers'
Occupation Tax Act.
(18) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated
for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(19) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in
the performance of infrastructure repairs in this State,
including, but not limited to, municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a

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State or federally declared disaster in Illinois or bordering
Illinois when such repairs are initiated on facilities located
in the declared disaster area within 6 months after the
disaster.
(20) Beginning July 1, 1999, game or game birds sold at a
"game breeding and hunting preserve area" as that term is used
in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-55.
(21) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the
Department to be organized and operated exclusively for
educational purposes. For purposes of this exemption, "a
corporation, limited liability company, society, association,
foundation, or institution organized and operated exclusively
for educational purposes" means all tax-supported public
schools, private schools that offer systematic instruction in
useful branches of learning by methods common to public
schools and that compare favorably in their scope and
intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes
organized and operated exclusively to provide a course of
study of not less than 6 weeks duration and designed to prepare
individuals to follow a trade or to pursue a manual,
technical, mechanical, industrial, business, or commercial

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occupation.
(22) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-55.
(23) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and
other items, and replacement parts for these machines.
Beginning January 1, 2002 and through June 30, 2003, machines
and parts for machines used in commercial, coin-operated
amusement and vending business if a use or occupation tax is
paid on the gross receipts derived from the use of the
commercial, coin-operated amusement and vending machines. This
paragraph is exempt from the provisions of Section 3-55.
(24) Beginning on August 2, 2001 (the effective date of

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

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tangible personal property to be transported outside this
State and thereafter used or consumed solely outside this
State. The Director of Revenue shall, pursuant to rules
adopted in accordance with the Illinois Administrative
Procedure Act, issue a permit to any taxpayer in good standing
with the Department who is eligible for the exemption under
this paragraph (26). The permit issued under this paragraph
(26) shall authorize the holder, to the extent and in the
manner specified in the rules adopted under this Act, to
purchase tangible personal property from a retailer exempt
from the taxes imposed by this Act. Taxpayers shall maintain
all necessary books and records to substantiate the use and
consumption of all such tangible personal property outside of
the State of Illinois.
(27) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued
under Title IV of the Environmental Protection Act. This
paragraph is exempt from the provisions of Section 3-55.
(28) Tangible personal property sold to a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is

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transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt
instruments issued by the public-facilities corporation in
connection with the development of the municipal convention
hall. This exemption includes existing public-facilities
corporations as provided in Section 11-65-25 of the Illinois
Municipal Code. This paragraph is exempt from the provisions
of Section 3-55.
(29) Beginning January 1, 2010 and continuing through
December 31, 2029, materials, parts, equipment, components,
and furnishings incorporated into or upon an aircraft as part
of the modification, refurbishment, completion, replacement,
repair, or maintenance of the aircraft. This exemption
includes consumable supplies used in the modification,
refurbishment, completion, replacement, repair, and
maintenance of aircraft. However, until January 1, 2024, this
exemption excludes any materials, parts, equipment,
components, and consumable supplies used in the modification,
replacement, repair, and maintenance of aircraft engines or
power plants, whether such engines or power plants are
installed or uninstalled upon any such aircraft. "Consumable
supplies" include, but are not limited to, adhesive, tape,
sandpaper, general purpose lubricants, cleaning solution,
latex gloves, and protective films.

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Beginning January 1, 2010 and continuing through December
31, 2023, this exemption applies only to the transfer of
qualifying tangible personal property incident to the
modification, refurbishment, completion, replacement, repair,
or maintenance of an aircraft by persons who (i) hold an Air
Agency Certificate and are empowered to operate an approved
repair station by the Federal Aviation Administration, (ii)
have a Class IV Rating, and (iii) conduct operations in
accordance with Part 145 of the Federal Aviation Regulations.
The exemption does not include aircraft operated by a
commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part
129 of the Federal Aviation Regulations. From January 1, 2024
through December 31, 2029, this exemption applies only to the
use of qualifying tangible personal property by: (A) persons
who modify, refurbish, complete, repair, replace, or maintain
aircraft and who (i) hold an Air Agency Certificate and are
empowered to operate an approved repair station by the Federal
Aviation Administration, (ii) have a Class IV Rating, and
(iii) conduct operations in accordance with Part 145 of the
Federal Aviation Regulations; and (B) persons who engage in
the modification, replacement, repair, and maintenance of
aircraft engines or power plants without regard to whether or
not those persons meet the qualifications of item (A).
The changes made to this paragraph (29) by Public Act
98-534 are declarative of existing law. It is the intent of the

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General Assembly that the exemption under this paragraph (29)
applies continuously from January 1, 2010 through December 31,
2024; however, no claim for credit or refund is allowed for
taxes paid as a result of the disallowance of this exemption on
or after January 1, 2015 and prior to February 5, 2020 (the
effective date of Public Act 101-629).
(30) Beginning January 1, 2017 and through December 31,
2026, menstrual pads, tampons, and menstrual cups.
(31) Tangible personal property transferred to a purchaser
who is exempt from tax by operation of federal law. This
paragraph is exempt from the provisions of Section 3-55.
(32) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor
of the owner, operator, or tenant. Data centers that would
have qualified for a certificate of exemption prior to January
1, 2020 had Public Act 101-31 been in effect, may apply for and
obtain an exemption for subsequent purchases of computer
equipment or enabling software purchased or leased to upgrade,
supplement, or replace computer equipment or enabling software
purchased or leased in the original investment that would have
qualified.
The Department of Commerce and Economic Opportunity shall

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grant a certificate of exemption under this item (32) to
qualified data centers as defined by Section 605-1025 of the
Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (32):
"Data center" means a building or a series of
buildings rehabilitated or constructed to house working
servers in one physical location or multiple sites within
the State of Illinois.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks; cabinets;
telecommunications cabling infrastructure; raised floor
systems; peripheral components or systems; software;
mechanical, electrical, or plumbing systems; battery
systems; cooling systems and towers; temperature control
systems; other cabling; and other data center
infrastructure equipment and systems necessary to operate
qualified tangible personal property, including fixtures;
and component parts of any of the foregoing, including
installation, maintenance, repair, refurbishment, and
replacement of qualified tangible personal property to
generate, transform, transmit, distribute, or manage

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electricity necessary to operate qualified tangible
personal property; and all other tangible personal
property that is essential to the operations of a computer
data center. The term "qualified tangible personal
property" also includes building materials physically
incorporated into in to the qualifying data center. To
document the exemption allowed under this Section, the
retailer must obtain from the purchaser a copy of the
certificate of eligibility issued by the Department of
Commerce and Economic Opportunity.
This item (32) is exempt from the provisions of Section
3-55.
(33) Beginning July 1, 2022, breast pumps, breast pump
collection and storage supplies, and breast pump kits. This
item (33) is exempt from the provisions of Section 3-55. As
used in this item (33):
"Breast pump" means an electrically controlled or
manually controlled pump device designed or marketed to be
used to express milk from a human breast during lactation,
including the pump device and any battery, AC adapter, or
other power supply unit that is used to power the pump
device and is packaged and sold with the pump device at the
time of sale.
"Breast pump collection and storage supplies" means
items of tangible personal property designed or marketed
to be used in conjunction with a breast pump to collect

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

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pre-packaged as a breast pump kit by the breast pump
manufacturer or distributor.
(34) Tangible personal property sold by or on behalf of
the State Treasurer pursuant to the Revised Uniform Unclaimed
Property Act. This item (34) is exempt from the provisions of
Section 3-55.
(35) Beginning on January 1, 2024, tangible personal
property purchased by an active duty member of the armed
forces of the United States who presents valid military
identification and purchases the property using a form of
payment where the federal government is the payor. The member
of the armed forces must complete, at the point of sale, a form
prescribed by the Department of Revenue documenting that the
transaction is eligible for the exemption under this
paragraph. Retailers must keep the form as documentation of
the exemption in their records for a period of not less than 6
years. "Armed forces of the United States" means the United
States Army, Navy, Air Force, Space Force, Marine Corps, or
Coast Guard. This paragraph is exempt from the provisions of
Section 3-55.
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
revised 12-12-23.)

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Section 55. The Retailers' Occupation Tax Act is amended
by changing Section 2-5 as follows:
(35 ILCS 120/2-5)
Sec. 2-5. Exemptions. Gross receipts from proceeds from
the sale of the following tangible personal property are
exempt from the tax imposed by this Act:
(1) Farm chemicals.
(2) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by
the purchaser to be used primarily for production
agriculture or State or federal agricultural programs,
including individual replacement parts for the machinery
and equipment, including machinery and equipment purchased
for lease, and including implements of husbandry defined
in Section 1-130 of the Illinois Vehicle Code, farm
machinery and agricultural chemical and fertilizer
spreaders, and nurse wagons required to be registered
under Section 3-809 of the Illinois Vehicle Code, but
excluding other motor vehicles required to be registered
under the Illinois Vehicle Code. Horticultural polyhouses
or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery
and equipment under this item (2). Agricultural chemical
tender tanks and dry boxes shall include units sold

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

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

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

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

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

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

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

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

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

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issued to the motor vehicle as provided in Section 3-603
of the Illinois Vehicle Code or if the nonresident
purchaser has vehicle registration plates to transfer to
the motor vehicle upon returning to his or her home state.
The issuance of the drive-away permit or having the
out-of-state registration plates to be transferred is
prima facie evidence that the motor vehicle will not be
titled in this State.
(25-5) The exemption under item (25) does not apply if
the state in which the motor vehicle will be titled does
not allow a reciprocal exemption for a motor vehicle sold
and delivered in that state to an Illinois resident but
titled in Illinois. The tax collected under this Act on
the sale of a motor vehicle in this State to a resident of
another state that does not allow a reciprocal exemption
shall be imposed at a rate equal to the state's rate of tax
on taxable property in the state in which the purchaser is
a resident, except that the tax shall not exceed the tax
that would otherwise be imposed under this Act. At the
time of the sale, the purchaser shall execute a statement,
signed under penalty of perjury, of his or her intent to
title the vehicle in the state in which the purchaser is a
resident within 30 days after the sale and of the fact of
the payment to the State of Illinois of tax in an amount
equivalent to the state's rate of tax on taxable property
in his or her state of residence and shall submit the

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

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

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

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

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

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

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

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

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(39) Beginning January 1, 2008, tangible personal
property used in the construction or maintenance of a
community water supply, as defined under Section 3.145 of
the Environmental Protection Act, that is operated by a
not-for-profit corporation that holds a valid water supply
permit issued under Title IV of the Environmental
Protection Act. This paragraph is exempt from the
provisions of Section 2-70.
(40) Beginning January 1, 2010 and continuing through
December 31, 2029, materials, parts, equipment,
components, and furnishings incorporated into or upon an
aircraft as part of the modification, refurbishment,
completion, replacement, repair, or maintenance of the
aircraft. This exemption includes consumable supplies used
in the modification, refurbishment, completion,
replacement, repair, and maintenance of aircraft. However,
until January 1, 2024, this exemption excludes any
materials, parts, equipment, components, and consumable
supplies used in the modification, replacement, repair,
and maintenance of aircraft engines or power plants,
whether such engines or power plants are installed or
uninstalled upon any such aircraft. "Consumable supplies"
include, but are not limited to, adhesive, tape,
sandpaper, general purpose lubricants, cleaning solution,
latex gloves, and protective films.
Beginning January 1, 2010 and continuing through

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December 31, 2023, this exemption applies only to the sale
of qualifying tangible personal property to persons who
modify, refurbish, complete, replace, or maintain an
aircraft and who (i) hold an Air Agency Certificate and
are empowered to operate an approved repair station by the
Federal Aviation Administration, (ii) have a Class IV
Rating, and (iii) conduct operations in accordance with
Part 145 of the Federal Aviation Regulations. The
exemption does not include aircraft operated by a
commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or
Part 129 of the Federal Aviation Regulations. From January
1, 2024 through December 31, 2029, this exemption applies
only to the use of qualifying tangible personal property
by: (A) persons who modify, refurbish, complete, repair,
replace, or maintain aircraft and who (i) hold an Air
Agency Certificate and are empowered to operate an
approved repair station by the Federal Aviation
Administration, (ii) have a Class IV Rating, and (iii)
conduct operations in accordance with Part 145 of the
Federal Aviation Regulations; and (B) persons who engage
in the modification, replacement, repair, and maintenance
of aircraft engines or power plants without regard to
whether or not those persons meet the qualifications of
item (A).
The changes made to this paragraph (40) by Public Act

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98-534 are declarative of existing law. It is the intent
of the General Assembly that the exemption under this
paragraph (40) applies continuously from January 1, 2010
through December 31, 2024; however, no claim for credit or
refund is allowed for taxes paid as a result of the
disallowance of this exemption on or after January 1, 2015
and prior to February 5, 2020 (the effective date of
Public Act 101-629).
(41) Tangible personal property sold to a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall,
but only if the legal title to the municipal convention
hall is transferred to the municipality without any
further consideration by or on behalf of the municipality
at the time of the completion of the municipal convention
hall or upon the retirement or redemption of any bonds or
other debt instruments issued by the public-facilities
corporation in connection with the development of the
municipal convention hall. This exemption includes
existing public-facilities corporations as provided in
Section 11-65-25 of the Illinois Municipal Code. This
paragraph is exempt from the provisions of Section 2-70.
(42) Beginning January 1, 2017 and through December
31, 2026, menstrual pads, tampons, and menstrual cups.
(43) Merchandise that is subject to the Rental

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

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

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

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

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include: (1) bottles and bottle caps not specific to the
operation of the breast pump; (2) breast pump travel bags
and other similar carrying accessories, including ice
packs, labels, and other similar products; (3) breast pump
cleaning supplies; (4) nursing bras, bra pads, breast
shells, and other similar products; and (5) creams,
ointments, and other similar products that relieve
breastfeeding-related symptoms or conditions of the
breasts or nipples, unless sold as part of a breast pump
kit that is pre-packaged by the breast pump manufacturer
or distributor.
"Breast pump kit" means a kit that: (1) contains no
more than a breast pump, breast pump collection and
storage supplies, a rechargeable battery for operating the
breast pump, a breastmilk cooler, bottle stands, ice
packs, and a breast pump carrying case; and (2) is
pre-packaged as a breast pump kit by the breast pump
manufacturer or distributor.
(47) Tangible personal property sold by or on behalf
of the State Treasurer pursuant to the Revised Uniform
Unclaimed Property Act. This item (47) is exempt from the
provisions of Section 2-70.
(48) Beginning on January 1, 2024, tangible personal
property purchased by an active duty member of the armed
forces of the United States who presents valid military
identification and purchases the property using a form of

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payment where the federal government is the payor. The
member of the armed forces must complete, at the point of
sale, a form prescribed by the Department of Revenue
documenting that the transaction is eligible for the
exemption under this paragraph. Retailers must keep the
form as documentation of the exemption in their records
for a period of not less than 6 years. "Armed forces of the
United States" means the United States Army, Navy, Air
Force, Space Force, Marine Corps, or Coast Guard. This
paragraph is exempt from the provisions of Section 2-70.
(Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised
12-12-23.)
Section 60. The Illinois Pension Code is amended by
changing Sections 2-109 and 14-103.16 as follows:
(40 ILCS 5/2-109) (from Ch. 108 1/2, par. 2-109)
Sec. 2-109. Military service. "Military service": Service
in the United States Army, Navy, Air Force, Space Force,
Marines or Coast Guard or any women's auxiliary thereof.
(Source: P.A. 87-794.)

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(40 ILCS 5/14-103.16) (from Ch. 108 1/2, par. 14-103.16)
Sec. 14-103.16. Military service. "Military service":
Service in the United States Army, Navy, Air Force, Space
Force, Marines or Coast Guard or any women's auxiliary thereof
for which credit is allowed under this Article.
(Source: P.A. 80-841.)
Section 65. The State Universities Civil Service Act is
amended by changing Section 36g as follows:
(110 ILCS 70/36g) (from Ch. 24 1/2, par. 38b6)
Sec. 36g. Appropriate preference in entrance examinations
to qualified persons who have been members of the armed forces
of the United States or to qualified persons who, while
citizens of the United States, were members of the armed
forces of allies of the United States in time of hostilities
with a foreign country, and to certain other persons as set
forth in this Section.
(a) As used in this Section:
(1) "Time of hostilities with a foreign country" means
any period of time in the past, present, or future during
which a declaration of war by the United States Congress
has been or is in effect or during which an emergency
condition has been or is in effect that is recognized by
the issuance of a Presidential proclamation or a

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Presidential executive order and in which the armed forces
expeditionary medal or other campaign service medals are
awarded according to Presidential executive order.
(2) "Armed forces of the United States" means the
United States Army, Navy, Air Force, Space Force, Marine
Corps, Coast Guard. Service in the Merchant Marine that
constitutes active duty under Section 401 of federal
Public Law 95-202 shall also be considered service in the
Armed Forces of the United States for purposes of this
Section.
(b) The preference granted under this Section shall be in
the form of points added to the final grades of the persons if
they otherwise qualify and are entitled to appear on the list
of those eligible for appointments.
(c) A veteran is qualified for a preference of 10 points if
the veteran currently holds proof of a service connected
disability from the United States Department of Veterans
Affairs or an allied country or if the veteran is a recipient
of the Purple Heart.
(d) A veteran who has served during a time of hostilities
with a foreign country is qualified for a preference of 5
points if the veteran served under one or more of the following
conditions:
(1) The veteran served a total of at least 6 months, or
(2) The veteran served for the duration of hostilities
regardless of the length of engagement, or

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(3) The veteran was discharged on the basis of
hardship, or
(4) The veteran was released from active duty because
of a service connected disability and was discharged under
honorable conditions.
(e) A person not eligible for a preference under
subsection (c) or (d) is qualified for a preference of 3 points
if the person has served in the armed forces of the United
States, the Illinois National Guard, or any reserve component
of the armed forces of the United States and the person: (1)
served for at least 6 months and has been discharged under
honorable conditions or (2) has been discharged on the ground
of hardship or (3) was released from active duty because of a
service connected disability. An active member of the National
Guard or a reserve component of the armed forces of the United
States is eligible for the preference if the member meets the
service requirements of this subsection (e).
(f) The rank order of persons entitled to a preference on
eligible lists shall be determined on the basis of their
augmented ratings. When the Executive Director establishes
eligible lists on the basis of category ratings such as
"superior", "excellent", "well-qualified", and "qualified",
the veteran eligibles in each such category shall be preferred
for appointment before the non-veteran eligibles in the same
category.
(g) Employees in positions covered by this Act who, while

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in good standing, leave to engage in military service during a
period of hostility shall be given credit for seniority
purposes for time served in the armed forces.
(h) A surviving unremarried spouse of a veteran who
suffered a service connected death or the spouse of a veteran
who suffered a service connected disability that prevents the
veteran from qualifying for civil service employment shall be
entitled to the same preference to which the veteran would
have been entitled under this Section.
(i) A preference shall also be given to the following
individuals: 10 points for one parent of an unmarried veteran
who suffered a service connected death or a service connected
disability that prevents the veteran from qualifying for civil
service employment. The first parent to receive a civil
service appointment shall be the parent entitled to the
preference.
(Source: P.A. 100-615, eff. 1-1-19.)
Section 70. The Funeral Directors and Embalmers Licensing
Code is amended by changing Sections 5-15 and 10-35 as
follows:
(225 ILCS 41/5-15)
(Section scheduled to be repealed on January 1, 2028)
Sec. 5-15. Renewal; reinstatement; restoration. The
expiration date and renewal period for each license issued

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under this Article shall be set by rule. The holder of a
license as a licensed funeral director may renew the license
during the month preceding the expiration date of the license
by paying the required fee. A licensed funeral director whose
license has expired may have the license reinstated within 5
years from the date of expiration upon payment of the required
reinstatement fee. The reinstatement shall be effective as of
the date of reissuance of the license.
Any licensed funeral director whose license has been
expired for more than 5 years may have the license restored
only by fulfilling the requirements of the Department's rules
and by paying the required restoration fee. However, any
licensed funeral director whose license has expired while he
or she has been engaged (1) in federal service on active duty
with the United States Army, Navy, Marine Corps, Air Force,
Space Force, or Coast Guard, or the State Militia called into
the service or training of the United States of America or (2)
in training or education under the supervision of the United
States preliminary to induction into the military service may
have his or her license restored without paying any lapsed
renewal fees or restoration fee or without passing any
examination if, within 2 years after termination of the
service, training or education other than by dishonorable
discharge, he or she furnishes the Department with an
affidavit to the effect that he or she has been so engaged and
that his or her service, training or education has been so

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terminated.
In addition to any other requirement for renewal of a
license or reinstatement or restoration of an expired license,
as a condition for the renewal, reinstatement, or restoration
of a license as a licensed funeral director, each licensee
shall provide evidence to the Department of completion of at
least 12 hours of continuing education during the 24 months
preceding the expiration date of the license, or in the case of
reinstatement or restoration, during the 24 months preceding
application for reinstatement or restoration. The continuing
education sponsors shall be approved by the Board. In
addition, any qualified continuing education course for
funeral directors offered by a college, university, the
Illinois Funeral Directors Association, Funeral Directors
Services Association of Greater Chicago, Cook County
Association of Funeral Home Owners, Inc., Illinois Selected
Morticians Association, Inc., Illinois Cemetery and Funeral
Home Association, National Funeral Directors Association,
Selected Independent Funeral Homes, National Funeral Directors
and Morticians Association, Inc., International Order of the
Golden Rule, or an Illinois school of mortuary science shall
be accepted toward satisfaction of the continuing education
requirements.
The Department shall establish by rule a means for
verification of completion of the continuing education
required by this Section. This verification may be

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accomplished through audits of records maintained by
licensees, by requiring the filing of continued education
certificates with the Department or a qualified organization
selected by the Department to maintain these records, or by
other means established by the Department.
Except as otherwise provided in this paragraph, a person
who is licensed as a funeral director under this Code and who
has engaged in the practice of funeral directing for at least
40 years shall be exempt from the continuing education
requirements of this Section. In addition, the Department
shall establish by rule an exemption or exception, for a
limited period of time, for funeral directors who, by reason
of advanced age, health or other extreme condition should
reasonably be excused from the continuing education
requirement upon the approval of the Secretary. Those persons,
identified above, who cannot attend on-site classes, shall
have the opportunity to comply by completing home study
courses designed for them by sponsors.
(Source: P.A. 102-881, eff. 1-1-23.)
(225 ILCS 41/10-35)
(Section scheduled to be repealed on January 1, 2028)
Sec. 10-35. Renewal; reinstatement; restoration. The
expiration date and renewal period for each license issued
under this Article shall be set by rule. The holder of a
license as a licensed funeral director and embalmer or funeral

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director and embalmer intern may renew the license during the
month preceding the expiration date of the license by paying
the required fee. A licensed funeral director and embalmer or
licensed funeral director and embalmer trainee whose license
has expired may have the license reinstated within 5 years
from the date of expiration upon payment of the required
reinstatement fee and fulfilling the requirements of the
Department's rules. The reinstatement of the license is
effective as of the date of the reissuance of the license.
Any licensed funeral director and embalmer whose license
has been expired for more than 5 years may have the license
restored only by fulfilling the requirements set forth in the
Department's rules and by paying the required restoration fee.
However, any licensed funeral director and embalmer or
licensed funeral director and embalmer intern whose license
has expired while he or she has been engaged (1) in federal
service on active duty with the United States Army, Navy,
Marine Corps, Air Force, Space Force, or Coast Guard, or the
State Militia called into the service or training of the
United States of America or (2) in training or education under
the supervision of the United States preliminary to induction
into the military service, may have his or her license
restored without paying any lapsed renewal fees or restoration
fee or without passing any examination if, within 2 years
after termination of the service, training or education other
than by dishonorable discharge, he or she furnishes the

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Department with an affidavit to the effect that he or she has
been so engaged and that his or her service, training or
education has been so terminated.
No license of a funeral director and embalmer intern shall
be renewed more than twice.
In addition to any other requirement for renewal of a
license or reinstatement or restoration of an expired license,
as a condition for the renewal, reinstatement, or restoration
of a license as a licensed funeral director and embalmer, each
licensee shall provide evidence to the Department of
completion of at least 24 hours of continuing education during
the 24 months preceding the expiration date of the license, or
in the case of reinstatement or restoration, within the 24
months preceding the application for reinstatement or
restoration. The continuing education sponsors shall be
approved by the Board. In addition, any qualified continuing
education course for funeral directors and embalmers offered
by a college, university, the Illinois Funeral Directors
Association, Funeral Directors Services Association of Greater
Chicago, Cook County Association of Funeral Home Owners, Inc.,
Illinois Selected Morticians Associations, Inc., Illinois
Cemetery and Funeral Home Association, National Funeral
Directors Association, Selected Independent Funeral Homes,
National Funeral Directors and Morticians Association, Inc.,
International Order of the Golden Rule, or an Illinois school
of mortuary science shall be accepted toward satisfaction of

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the continuing education requirements.
The Department shall establish by rule a means for
verification of completion of the continuing education
required by this Section. This verification may be
accomplished through audits of records maintained by
licensees, by requiring the filing of continued education
certificates with the Department or a qualified organization
selected by the Department to maintain the records, or by
other means established by the Department.
Except as otherwise provided in this paragraph, a person
who is licensed as a funeral director and embalmer under this
Code and who has engaged in the practice of funeral directing
and embalming for at least 40 years shall be exempt from the
continuing education requirements of this Section. In
addition, the Department shall establish by rule an exemption
or exception, for a limited period of time, for funeral
directors and embalmers who, by reason of advanced age, health
or other extreme condition, should reasonably be excused from
the continuing education requirement upon the approval of the
Secretary. Those persons, identified above, who cannot attend
on-site classes, shall have the opportunity to comply by
completing home study courses designed for them by sponsors.
(Source: P.A. 103-419, eff. 8-4-23.)
Section 75. The Massage Licensing Act is amended by
changing Section 70 as follows:

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(225 ILCS 57/70)
(Section scheduled to be repealed on January 1, 2027)
Sec. 70. Restoration of expired licenses. A massage
therapist who has permitted his or her license to expire or who
has had his or her license on inactive status may have his or
her license restored by making application to the Department
and filing proof acceptable to the Department of his or her
fitness to have his or her license restored, including sworn
evidence certifying to active practice in another jurisdiction
satisfactory to the Department, and by paying the required
restoration fee and showing proof of completion of required
continuing education. Licensees must provide proof of
completion of 24 hours approved continuing education to renew
their license.
If the massage therapist has not maintained an active
practice in another jurisdiction satisfactory to the
Department, the Board shall determine, by an evaluation
program established by rule his or her fitness to resume
active status and may require the massage therapist to
complete a period of evaluated clinical experience and may
require successful completion of an examination.
A massage therapist whose license has been expired or
placed on inactive status for more than 5 years may have his or
her license restored by making application to the Department
and filing proof acceptable to the Department of his or her

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fitness to have his or her license restored, including sworn
evidence certifying to active practice in another
jurisdiction, by paying the required restoration fee, and by
showing proof of the completion of 24 hours of continuing
education.
However, any registrant whose license has expired while he
or she has been engaged (i) in Federal Service on active duty
with the United States Army, Navy, Marine Corps, Air Force,
Space Force, Coast Guard, or Public Health Service or the
State Militia called into the service or training of the
United States of America, or (ii) in training or education
under the supervision of the United States preliminary to
induction into the military service, may have his or her
license reinstated or restored without paying any lapsed
renewal fees, if within 2 years after honorable termination of
such service, training, or education, he or she furnishes to
the Department with satisfactory evidence to the effect that
he or she has been so engaged and that his or her service,
training, or education has been so terminated.
(Source: P.A. 97-514, eff. 8-23-11.)
Section 80. The Barber, Cosmetology, Esthetics, Hair
Braiding, and Nail Technology Act of 1985 is amended by
changing Section 1-7 as follows:
(225 ILCS 410/1-7) (from Ch. 111, par. 1701-7)

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(Section scheduled to be repealed on January 1, 2026)
Sec. 1-7. Licensure required; renewal; restoration.
(a) It is unlawful for any person to practice, or to hold
himself or herself out to be a cosmetologist, esthetician,
nail technician, hair braider, or barber without a license as
a cosmetologist, esthetician, nail technician, hair braider or
barber issued by the Department pursuant to the provisions of
this Act and of the Civil Administrative Code of Illinois. It
is also unlawful for any person, firm, partnership, limited
liability company, or corporation to own, operate, or conduct
a cosmetology, esthetics, nail technology, hair braiding, or
barber school without a license issued by the Department or to
own or operate a cosmetology, esthetics, nail technology, or
hair braiding salon, barber shop, or other business subject to
the registration requirements of this Act without a
certificate of registration issued by the Department. It is
further unlawful for any person to teach in any cosmetology,
esthetics, nail technology, hair braiding, or barber college
or school approved by the Department or hold himself or
herself out as a cosmetology, esthetics, hair braiding, nail
technology, or barber teacher without a license as a teacher,
issued by the Department or as a cosmetology clinic teacher
without a license as a cosmetology clinic teacher issued by
the Department.
(b) Notwithstanding any other provision of this Act, a
person licensed as a cosmetologist may hold himself or herself

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out as an esthetician and may engage in the practice of
esthetics, as defined in this Act, without being licensed as
an esthetician. A person licensed as a cosmetology teacher may
teach esthetics or hold himself or herself out as an esthetics
teacher without being licensed as an esthetics teacher. A
person licensed as a cosmetologist may hold himself or herself
out as a nail technician and may engage in the practice of nail
technology, as defined in this Act, without being licensed as
a nail technician. A person licensed as a cosmetology teacher
may teach nail technology and hold himself or herself out as a
nail technology teacher without being licensed as a nail
technology teacher. A person licensed as a cosmetologist may
hold himself or herself out as a hair braider and may engage in
the practice of hair braiding, as defined in this Act, without
being licensed as a hair braider. A person licensed as a
cosmetology teacher may teach hair braiding and hold himself
or herself out as a hair braiding teacher without being
licensed as a hair braiding teacher.
(c) A person licensed as a barber teacher may hold himself
or herself out as a barber and may practice barbering without a
license as a barber. A person licensed as a cosmetology
teacher may hold himself or herself out as a cosmetologist,
esthetician, hair braider, and nail technologist and may
practice cosmetology, esthetics, hair braiding, and nail
technology without a license as a cosmetologist, esthetician,
hair braider, or nail technologist. A person licensed as an

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esthetics teacher may hold himself or herself out as an
esthetician without being licensed as an esthetician and may
practice esthetics. A person licensed as a nail technician
teacher may practice nail technology and may hold himself or
herself out as a nail technologist without being licensed as a
nail technologist. A person licensed as a hair braiding
teacher may practice hair braiding and may hold himself or
herself out as a hair braider without being licensed as a hair
braider.
(d) The holder of a license issued under this Act may renew
that license during the month preceding the expiration date of
the license by paying the required fee.
(e) The expiration date, renewal period, and conditions
for renewal and restoration of each license shall be
established by rule.
(f) A license issued under the provisions of this Act as a
barber, barber teacher, cosmetologist, cosmetology teacher,
cosmetology clinic teacher, esthetician, esthetics teacher,
nail technician, nail technician teacher, hair braider, or
hair braiding teacher that has expired while the holder of the
license was engaged (1) in federal service on active duty with
the Army, Navy, Marine Corps, Air Force, Space Force, or Coast
Guard of the United States of America, or any Women's
Auxiliary thereof, or the State Militia called into the
service or training of the United States of America or (2) in
training or education under the supervision of the United

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States preliminary to induction into the military service, may
be reinstated or restored without payment of any lapsed
renewal fees, reinstatement fee, or restoration fee if within
2 years after the termination of such service, training, or
education other than by dishonorable discharge, the holder
furnishes the Department with an affidavit to the effect that
he or she has been so engaged and that his or her service,
training, or education has been so terminated.
(Source: P.A. 98-911, eff. 1-1-15; 99-427, eff. 8-21-15.)
Section 85. The War on Terrorism Compensation Act is
amended by changing Section 5 as follows:
(330 ILCS 32/5)
Sec. 5. Definitions. In this Act:
"Armed forces of the United States" means the United
States Army, Navy, Air Force, Space Force, Marine Corps, or
Coast Guard, the United States Reserve Forces, or the Illinois
National Guard. Service in the merchant marine is not service
in the armed forces for purposes of this Act.
"Department" means the Illinois Department of Veterans'
Affairs.
(Source: P.A. 96-76, eff. 7-24-09.)
Section 90. The Veterans Preference Act is amended by
changing Section 1 as follows:

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(330 ILCS 55/1) (from Ch. 126 1/2, par. 23)
Sec. 1. Veterans preference.
(a) In the employment and appointment to fill positions in
the construction, addition to, or alteration of all public
works undertaken or contracted for by the State, or by any
political subdivision thereof, preference shall be given to
persons who have been members of the armed forces of the United
States or who, while citizens of the United States, were
members of the armed forces of allies of the United States in
time of hostilities with a foreign country, and have served
under one or more of the following conditions:
(1) The veteran served a total of at least 6 months, or
(2) The veteran served for the duration of hostilities
regardless of the length of engagement, or
(3) The veteran served in the theater of operations
but was discharged on the basis of a hardship, or
(4) The veteran was released from active duty because
of a service connected disability and was honorably
discharged. But such preference shall be given only to
those persons who are found to possess the business
capacity necessary for the proper discharge of the duties
of such employment. No political subdivision or person
contracting for such public works is required to give
preference to veterans, not residents of such district,
over residents thereof, who are not veterans.

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For the purposes of this Section, a person who has been a
member of the Illinois National Guard shall be given priority
over a person who has been a member of the National Guard of
any other state.
(b) As used in this Act:
"Time of hostilities with a foreign country" means any
period of time in the past, present, or future during which a
declaration of war by the United States Congress has been or is
in effect or during which an emergency condition has been or is
in effect that is recognized by the issuance of a Presidential
proclamation or a Presidential executive order and in which
the armed forces expeditionary medal or other campaign service
medals are awarded according to Presidential executive order.
"Armed forces of the United States" means the United
States Army, Navy, Air Force, Space Force, Marine Corps, or
Coast Guard, United States Reserve Forces, or the National
Guard of any state. Service in the Merchant Marine that
constitutes active duty under Section 401 of federal Public
Law 95-202 shall also be considered service in the Armed
Forces of the United States for purposes of this Section.
(Source: P.A. 102-498, eff. 1-1-22.)
Section 95. The Veterans Burial Places Act is amended by
changing Section 1 as follows:
(330 ILCS 110/1) (from Ch. 21, par. 59a)

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Sec. 1. For the purpose of locating the burial places of
United States War Veterans and reporting to the United States
Government under the provisions of the Federal Law respecting
the erection of headstones at the graves of United States War
Veterans and the erection of memorial markers where the
remains of such veterans were not recovered or were buried at
sea, the Department of Veterans' Affairs shall maintain a card
file Roll of Honor, alphabetically arranged, of all veterans
buried in the State or, if no remains were recovered or if such
remains were buried at sea, of all the memorial markers for
such veterans placed in the State and an additional record by
counties showing the burials or memorial markers in each
cemetery in each county. The records, so far as obtainable,
shall contain the name of the veteran, war served in, his rank,
organizations, dates of enlistment and discharge, date of
death, description of grave or memorial marker, and name and
location of cemetery. It shall also be his duty to prepare
requisitions on the Federal Government for headstones or
memorial markers when same are desired and to supervise their
transportation from the railroad station to and erection at
the grave of the veteran or at the site for the erection of a
memorial marker if no remains were recovered or if such
remains were buried at sea, certifying bills for same for
payment.
The Department of Veterans' Affairs shall appoint such
additional employees as may be required to maintain the

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records of War Veterans Graves and Memorial Markers
Registration. The appointment of such employees shall not be
subject to the provisions of any law relating to civil service
or job classification on a merit basis.
"United States War Veterans", for purposes of this Act,
means:
(1) Soldiers of the Union and Confederate Armies of the
Civil War.
(2) Members of the Armed Forces of the United States dying
in the service and former members whose last service
terminated honorably.
(3) Persons buried in post and national cemeteries.
(4) Members of a reserve component of the Armed Forces of
the United States, and members of the Army National Guard or
the Air National Guard, whose death occurred under honorable
conditions while they were:
(a) on active duty for training, or performing
full-time service under Section 316, 503, 504, or 505 of
Title 32, United States Code;
(b) performing authorized travel to or from that duty
or service;
(c) on authorized inactive duty training, including
training performed as members of the Army National Guard
or the Air National Guard; or
(d) hospitalized or undergoing treatment, at the
expense of the United States, for injury or disease

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contracted or incurred under honorable conditions while
they were:
(i) on that duty or service;
(ii) performing that travel or inactive duty
training; or
(iii) undergoing that hospitalization or treatment
at the expenses of the United States.
(5) Members of the Reserve Officers Training Corps of the
Army, Navy, Space Force, or Air Force whose death occurred
under honorable conditions while they were:
(a) attending an authorized training camp or on an
authorized practice cruise;
(b) performing authorized travel to or from that camp
or cruise; or
(c) hospitalized or undergoing treatment, at the
expense of the United States, for injury or disease
contracted or incurred under honorable conditions while
they were:
(i) attending that camp or on that cruise;
(ii) performing that travel; or
(iii) undergoing that hospitalization or treatment
at the expense of the United States.
(Source: P.A. 91-357, eff. 7-29-99.)
Section 100. The Criminal Code of 2012 is amended by
changing Section 17-2 as follows:

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(720 ILCS 5/17-2) (from Ch. 38, par. 17-2)
Sec. 17-2. False personation; solicitation.
(a) False personation; solicitation.
(1) A person commits a false personation when he or
she knowingly and falsely represents himself or herself to
be a member or representative of any veterans' or public
safety personnel organization or a representative of any
charitable organization, or when he or she knowingly
exhibits or uses in any manner any decal, badge or
insignia of any charitable, public safety personnel, or
veterans' organization when not authorized to do so by the
charitable, public safety personnel, or veterans'
organization. "Public safety personnel organization" has
the meaning ascribed to that term in Section 1 of the
Solicitation for Charity Act.
(2) A person commits a false personation when he or
she knowingly and falsely represents himself or herself to
be a veteran in seeking employment or public office. In
this paragraph, "veteran" means a person who has served in
the Armed Services or Reserve Forces of the United States.
(2.1) A person commits a false personation when he or
she knowingly and falsely represents himself or herself to
be:
(A) an active-duty member of the Armed Services or
Reserve Forces of the United States or the National

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Guard or a veteran of the Armed Services or Reserve
Forces of the United States or the National Guard; and
(B) obtains money, property, or another tangible
benefit through that false representation.
In this paragraph, "member of the Armed Services or
Reserve Forces of the United States" means a member of the
United States Navy, Army, Air Force, Space Force, Marine
Corps, or Coast Guard; and "veteran" means a person who
has served in the Armed Services or Reserve Forces of the
United States or the National Guard.
(2.5) A person commits a false personation when he or
she knowingly and falsely represents himself or herself to
be:
(A) another actual person and does an act in such
assumed character with intent to intimidate, threaten,
injure, defraud, or to obtain a benefit from another;
or
(B) a representative of an actual person or
organization and does an act in such false capacity
with intent to obtain a benefit or to injure or defraud
another.
(3) No person shall knowingly use the words "Police",
"Police Department", "Patrolman", "Sergeant",
"Lieutenant", "Peace Officer", "Sheriff's Police",
"Sheriff", "Officer", "Law Enforcement", "Trooper",
"Deputy", "Deputy Sheriff", "State Police", or any other

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words to the same effect (i) in the title of any
organization, magazine, or other publication without the
express approval of the named public safety personnel
organization's governing board or (ii) in combination with
the name of any state, state agency, public university, or
unit of local government without the express written
authorization of that state, state agency, public
university, or unit of local government.
(4) No person may knowingly claim or represent that he
or she is acting on behalf of any public safety personnel
organization when soliciting financial contributions or
selling or delivering or offering to sell or deliver any
merchandise, goods, services, memberships, or
advertisements unless the chief of the police department,
fire department, and the corporate or municipal authority
thereof, or the sheriff has first entered into a written
agreement with the person or with an organization with
which the person is affiliated and the agreement permits
the activity and specifies and states clearly and fully
the purpose for which the proceeds of the solicitation,
contribution, or sale will be used.
(5) No person, when soliciting financial contributions
or selling or delivering or offering to sell or deliver
any merchandise, goods, services, memberships, or
advertisements may claim or represent that he or she is
representing or acting on behalf of any nongovernmental

HB5640 Enrolled - 152 - LRB103 38934 KTG 69071 b
organization by any name which includes "officer", "peace
officer", "police", "law enforcement", "trooper",
"sheriff", "deputy", "deputy sheriff", "State police", or
any other word or words which would reasonably be
understood to imply that the organization is composed of
law enforcement personnel unless:
(A) the person is actually representing or acting
on behalf of the nongovernmental organization;
(B) the nongovernmental organization is controlled
by and governed by a membership of and represents a
group or association of active duty peace officers,
retired peace officers, or injured peace officers; and
(C) before commencing the solicitation or the sale
or the offers to sell any merchandise, goods,
services, memberships, or advertisements, a written
contract between the soliciting or selling person and
the nongovernmental organization, which specifies and
states clearly and fully the purposes for which the
proceeds of the solicitation, contribution, or sale
will be used, has been entered into.
(6) No person, when soliciting financial contributions
or selling or delivering or offering to sell or deliver
any merchandise, goods, services, memberships, or
advertisements, may knowingly claim or represent that he
or she is representing or acting on behalf of any
nongovernmental organization by any name which includes

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the term "fireman", "fire fighter", "paramedic", or any
other word or words which would reasonably be understood
to imply that the organization is composed of fire fighter
or paramedic personnel unless:
(A) the person is actually representing or acting
on behalf of the nongovernmental organization;
(B) the nongovernmental organization is controlled
by and governed by a membership of and represents a
group or association of active duty, retired, or
injured fire fighters (for the purposes of this
Section, "fire fighter" has the meaning ascribed to
that term in Section 2 of the Illinois Fire Protection
Training Act) or active duty, retired, or injured
emergency medical technicians - ambulance, emergency
medical technicians - intermediate, emergency medical
technicians - paramedic, ambulance drivers, or other
medical assistance or first aid personnel; and
(C) before commencing the solicitation or the sale
or delivery or the offers to sell or deliver any
merchandise, goods, services, memberships, or
advertisements, the soliciting or selling person and
the nongovernmental organization have entered into a
written contract that specifies and states clearly and
fully the purposes for which the proceeds of the
solicitation, contribution, or sale will be used.
(7) No person may knowingly claim or represent that he

HB5640 Enrolled - 154 - LRB103 38934 KTG 69071 b
or she is an airman, airline employee, airport employee,
or contractor at an airport in order to obtain the
uniform, identification card, license, or other
identification paraphernalia of an airman, airline
employee, airport employee, or contractor at an airport.
(8) No person, firm, copartnership, or corporation
(except corporations organized and doing business under
the Pawners Societies Act) shall knowingly use a name that
contains in it the words "Pawners' Society".
(b) False personation; public officials and employees. A
person commits a false personation if he or she knowingly and
falsely represents himself or herself to be any of the
following:
(1) An attorney authorized to practice law for
purposes of compensation or consideration. This paragraph
(b)(1) does not apply to a person who unintentionally
fails to pay attorney registration fees established by
Supreme Court Rule.
(2) A public officer or a public employee or an
official or employee of the federal government.
(2.3) A public officer, a public employee, or an
official or employee of the federal government, and the
false representation is made in furtherance of the
commission of felony.
(2.7) A public officer or a public employee, and the
false representation is for the purpose of effectuating

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identity theft as defined in Section 16-30 of this Code.
(3) A peace officer.
(4) A peace officer while carrying a deadly weapon.
(5) A peace officer in attempting or committing a
felony.
(6) A peace officer in attempting or committing a
forcible felony.
(7) The parent, legal guardian, or other relation of a
minor child to any public official, public employee, or
elementary or secondary school employee or administrator.
(7.5) The legal guardian, including any representative
of a State or public guardian, of a person with a
disability appointed under Article XIa of the Probate Act
of 1975.
(8) A fire fighter.
(9) A fire fighter while carrying a deadly weapon.
(10) A fire fighter in attempting or committing a
felony.
(11) An emergency management worker of any
jurisdiction in this State.
(12) An emergency management worker of any
jurisdiction in this State in attempting or committing a
felony. For the purposes of this subsection (b),
"emergency management worker" has the meaning provided
under Section 2-6.6 of this Code.
(b-5) The trier of fact may infer that a person falsely

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represents himself or herself to be a public officer or a
public employee or an official or employee of the federal
government if the person:
(1) wears or displays without authority any uniform,
badge, insignia, or facsimile thereof by which a public
officer or public employee or official or employee of the
federal government is lawfully distinguished; or
(2) falsely expresses by word or action that he or she
is a public officer or public employee or official or
employee of the federal government and is acting with
approval or authority of a public agency or department.
(c) Fraudulent advertisement of a corporate name.
(1) A company, association, or individual commits
fraudulent advertisement of a corporate name if he, she,
or it, not being incorporated, puts forth a sign or
advertisement and assumes, for the purpose of soliciting
business, a corporate name.
(2) Nothing contained in this subsection (c) prohibits
a corporation, company, association, or person from using
a divisional designation or trade name in conjunction with
its corporate name or assumed name under Section 4.05 of
the Business Corporation Act of 1983 or, if it is a member
of a partnership or joint venture, from doing partnership
or joint venture business under the partnership or joint
venture name. The name under which the joint venture or
partnership does business may differ from the names of the

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members. Business may not be conducted or transacted under
that joint venture or partnership name, however, unless
all provisions of the Assumed Business Name Act have been
complied with. Nothing in this subsection (c) permits a
foreign corporation to do business in this State without
complying with all Illinois laws regulating the doing of
business by foreign corporations. No foreign corporation
may conduct or transact business in this State as a member
of a partnership or joint venture that violates any
Illinois law regulating or pertaining to the doing of
business by foreign corporations in Illinois.
(3) The provisions of this subsection (c) do not apply
to limited partnerships formed under the Revised Uniform
Limited Partnership Act or under the Uniform Limited
Partnership Act (2001).
(d) False law enforcement badges.
(1) A person commits false law enforcement badges if
he or she knowingly produces, sells, or distributes a law
enforcement badge without the express written consent of
the law enforcement agency represented on the badge or, in
case of a reorganized or defunct law enforcement agency,
its successor law enforcement agency.
(2) It is a defense to false law enforcement badges
that the law enforcement badge is used or is intended to be
used exclusively: (i) as a memento or in a collection or
exhibit; (ii) for decorative purposes; or (iii) for a

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dramatic presentation, such as a theatrical, film, or
television production.
(e) False medals.
(1) A person commits a false personation if he or she
knowingly and falsely represents himself or herself to be
a recipient of, or wears on his or her person, any of the
following medals if that medal was not awarded to that
person by the United States Government, irrespective of
branch of service: The Congressional Medal of Honor, The
Distinguished Service Cross, The Navy Cross, The Air Force
Cross, The Silver Star, The Bronze Star, or the Purple
Heart.
(2) It is a defense to a prosecution under paragraph
(e)(1) that the medal is used, or is intended to be used,
exclusively:
(A) for a dramatic presentation, such as a
theatrical, film, or television production, or a
historical re-enactment; or
(B) for a costume worn, or intended to be worn, by
a person under 18 years of age.
(f) Sentence.
(1) A violation of paragraph (a)(8) is a petty offense
subject to a fine of not less than $5 nor more than $100,
and the person, firm, copartnership, or corporation
commits an additional petty offense for each day he, she,
or it continues to commit the violation. A violation of

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paragraph (c)(1) is a petty offense, and the company,
association, or person commits an additional petty offense
for each day he, she, or it continues to commit the
violation. A violation of paragraph (a)(2.1) or subsection
(e) is a petty offense for which the offender shall be
fined at least $100 and not more than $200.
(2) A violation of paragraph (a)(1), (a)(3), or
(b)(7.5) is a Class C misdemeanor.
(3) A violation of paragraph (a)(2), (a)(2.5), (a)(7),
(b)(2), or (b)(7) or subsection (d) is a Class A
misdemeanor. A second or subsequent violation of
subsection (d) is a Class 3 felony.
(4) A violation of paragraph (a)(4), (a)(5), (a)(6),
(b)(1), (b)(2.3), (b)(2.7), (b)(3), (b)(8), or (b)(11) is
a Class 4 felony.
(5) A violation of paragraph (b)(4), (b)(9), or
(b)(12) is a Class 3 felony.
(6) A violation of paragraph (b)(5) or (b)(10) is a
Class 2 felony.
(7) A violation of paragraph (b)(6) is a Class 1
felony.
(g) A violation of subsection (a)(1) through (a)(7) or
subsection (e) of this Section may be accomplished in person
or by any means of communication, including but not limited to
the use of an Internet website or any form of electronic
communication.

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(Source: P.A. 99-143, eff. 7-27-15; 99-561, eff. 7-15-16;
100-201, eff. 8-18-17.)
HB5640 Enrolled - 161 - LRB103 38934 KTG 69071 b
INDEX
Statutes amended in order of appearance