USE TAX-MILITARY-VEHICLES

Illinois General Assembly - Full Text of SB0133

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB0133

Introduced 1/17/2025, by Sen. Jil Tracy

SYNOPSIS AS INTRODUCED:

35 ILCS 105/3-5
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/2-5
625 ILCS 5/3-1001

from Ch. 95 1/2, par. 3-1001

Amends the Use Tax Act, the Service Use Tax Act, the Service
Occupation Tax Act, the Retailers' Occupation Tax Act, and the Vehicle Use
Tax Article of the Illinois Vehicle Code. Provides that the taxes under
those Acts do not apply to a motor vehicle that is registered in the State
to an Illinois resident who acquired the vehicle while the Illinois
resident was stationed outside of this State as an active duty member of
the military.
LRB104 03841 HLH 13865 b

A BILL FOR

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1

AN ACT concerning revenue.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Use Tax Act is amended by changing Section
5
3-5 as follows:

6

(35 ILCS 105/3-5)
7

Sec. 3-5.
Exemptions.
Use, which, on and after January 1,
8
2025, includes use by a lessee, of the following tangible
9
personal property is exempt from the tax imposed by this Act:
10

(1) Personal property purchased from a corporation,
11
society, association, foundation, institution, or
12
organization, other than a limited liability company, that is
13
organized and operated as a not-for-profit service enterprise
14
for the benefit of persons 65 years of age or older if the
15
personal property was not purchased by the enterprise for the
16
purpose of resale by the enterprise.
17

(2) Personal property purchased by a not-for-profit
18
Illinois county fair association for use in conducting,
19
operating, or promoting the county fair.
20

(3) Personal property purchased by a not-for-profit arts
21
or cultural organization that establishes, by proof required
22
by the Department by rule, that it has received an exemption
23
under Section 501(c)(3) of the Internal Revenue Code and that

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1
is organized and operated primarily for the presentation or
2
support of arts or cultural programming, activities, or
3
services. These organizations include, but are not limited to,
4
music and dramatic arts organizations such as symphony
5
orchestras and theatrical groups, arts and cultural service
6
organizations, local arts councils, visual arts organizations,
7
and media arts organizations. On and after July 1, 2001 (the
8
effective date of Public Act 92-35), however, an entity
9
otherwise eligible for this exemption shall not make tax-free
10
purchases unless it has an active identification number issued
11
by the Department.
12

(4) Except as otherwise provided in this Act, personal
13
property purchased by a governmental body, by a corporation,
14
society, association, foundation, or institution organized and
15
operated exclusively for charitable, religious, or educational
16
purposes, or by a not-for-profit corporation, society,
17
association, foundation, institution, or organization that has
18
no compensated officers or employees and that is organized and
19
operated primarily for the recreation of persons 55 years of
20
age or older. A limited liability company may qualify for the
21
exemption under this paragraph only if the limited liability
22
company is organized and operated exclusively for educational
23
purposes. On and after July 1, 1987, however, no entity
24
otherwise eligible for this exemption shall make tax-free
25
purchases unless it has an active exemption identification
26
number issued by the Department.

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(5) Until July 1, 2003, a passenger car that is a
2
replacement vehicle to the extent that the purchase price of
3
the car is subject to the Replacement Vehicle Tax.
4

(6) Until July 1, 2003 and beginning again on September 1,
5
2004 through August 30, 2014, graphic arts machinery and
6
equipment, including repair and replacement parts, both new
7
and used, and including that manufactured on special order,
8
certified by the purchaser to be used primarily for graphic
9
arts production, and including machinery and equipment
10
purchased for lease. Equipment includes chemicals or chemicals
11
acting as catalysts but only if the chemicals or chemicals
12
acting as catalysts effect a direct and immediate change upon
13
a graphic arts product. Beginning on July 1, 2017, graphic
14
arts machinery and equipment is included in the manufacturing
15
and assembling machinery and equipment exemption under
16
paragraph (18).
17

(7) Farm chemicals.
18

(8) Legal tender, currency, medallions, or gold or silver
19
coinage issued by the State of Illinois, the government of the
20
United States of America, or the government of any foreign
21
country, and bullion.
22

(9) Personal property purchased from a teacher-sponsored
23
student organization affiliated with an elementary or
24
secondary school located in Illinois.
25

(10) A motor vehicle that is used for automobile renting,
26
as defined in the Automobile Renting Occupation and Use Tax

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Act.
2

(11) Farm machinery and equipment, both new and used,
3
including that manufactured on special order, certified by the
4
purchaser to be used primarily for production agriculture or
5
State or federal agricultural programs, including individual
6
replacement parts for the machinery and equipment, including
7
machinery and equipment purchased for lease, and including
8
implements of husbandry defined in Section 1-130 of the
9
Illinois Vehicle Code, farm machinery and agricultural
10
chemical and fertilizer spreaders, and nurse wagons required
11
to be registered under Section 3-809 of the Illinois Vehicle
12
Code, but excluding other motor vehicles required to be
13
registered under the Illinois Vehicle Code. Horticultural
14
polyhouses or hoop houses used for propagating, growing, or
15
overwintering plants shall be considered farm machinery and
16
equipment under this item (11). Agricultural chemical tender
17
tanks and dry boxes shall include units sold separately from a
18
motor vehicle required to be licensed and units sold mounted
19
on a motor vehicle required to be licensed if the selling price
20
of the tender is separately stated.
21

Farm machinery and equipment shall include precision
22
farming equipment that is installed or purchased to be
23
installed on farm machinery and equipment, including, but not
24
limited to, tractors, harvesters, sprayers, planters, seeders,
25
or spreaders. Precision farming equipment includes, but is not
26
limited to, soil testing sensors, computers, monitors,

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software, global positioning and mapping systems, and other
2
such equipment.
3

Farm machinery and equipment also includes computers,
4
sensors, software, and related equipment used primarily in the
5
computer-assisted operation of production agriculture
6
facilities, equipment, and activities such as, but not limited
7
to, the collection, monitoring, and correlation of animal and
8
crop data for the purpose of formulating animal diets and
9
agricultural chemicals.
10

Beginning on January 1, 2024, farm machinery and equipment
11
also includes electrical power generation equipment used
12
primarily for production agriculture.
13

This item (11) is exempt from the provisions of Section
14
3-90.
15

(12) Until June 30, 2013, fuel and petroleum products sold
16
to or used by an air common carrier, certified by the carrier
17
to be used for consumption, shipment, or storage in the
18
conduct of its business as an air common carrier, for a flight
19
destined for or returning from a location or locations outside
20
the United States without regard to previous or subsequent
21
domestic stopovers.
22

Beginning July 1, 2013, fuel and petroleum products sold
23
to or used by an air carrier, certified by the carrier to be
24
used for consumption, shipment, or storage in the conduct of
25
its business as an air common carrier, for a flight that (i) is
26
engaged in foreign trade or is engaged in trade between the

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United States and any of its possessions and (ii) transports
2
at least one individual or package for hire from the city of
3
origination to the city of final destination on the same
4
aircraft, without regard to a change in the flight number of
5
that aircraft.
6

(13) Proceeds of mandatory service charges separately
7
stated on customers' bills for the purchase and consumption of
8
food and beverages purchased at retail from a retailer, to the
9
extent that the proceeds of the service charge are in fact
10
turned over as tips or as a substitute for tips to the
11
employees who participate directly in preparing, serving,
12
hosting or cleaning up the food or beverage function with
13
respect to which the service charge is imposed.
14

(14) Until July 1, 2003, oil field exploration, drilling,
15
and production equipment, including (i) rigs and parts of
16
rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
17
pipe and tubular goods, including casing and drill strings,
18
(iii) pumps and pump-jack units, (iv) storage tanks and flow
19
lines, (v) any individual replacement part for oil field
20
exploration, drilling, and production equipment, and (vi)
21
machinery and equipment purchased for lease; but excluding
22
motor vehicles required to be registered under the Illinois
23
Vehicle Code.
24

(15) Photoprocessing machinery and equipment, including
25
repair and replacement parts, both new and used, including
26
that manufactured on special order, certified by the purchaser

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to be used primarily for photoprocessing, and including
2
photoprocessing machinery and equipment purchased for lease.
3

(16) Until July 1, 2028, coal and aggregate exploration,
4
mining, off-highway hauling, processing, maintenance, and
5
reclamation equipment, including replacement parts and
6
equipment, and including equipment purchased for lease, but
7
excluding motor vehicles required to be registered under the
8
Illinois Vehicle Code. The changes made to this Section by
9
Public Act 97-767 apply on and after July 1, 2003, but no claim
10
for credit or refund is allowed on or after August 16, 2013
11
(the effective date of Public Act 98-456) for such taxes paid
12
during the period beginning July 1, 2003 and ending on August
13
16, 2013 (the effective date of Public Act 98-456).
14

(17) Until July 1, 2003, distillation machinery and
15
equipment, sold as a unit or kit, assembled or installed by the
16
retailer, certified by the user to be used only for the
17
production of ethyl alcohol that will be used for consumption
18
as motor fuel or as a component of motor fuel for the personal
19
use of the user, and not subject to sale or resale.
20

(18) Manufacturing and assembling machinery and equipment
21
used primarily in the process of manufacturing or assembling
22
tangible personal property for wholesale or retail sale or
23
lease, whether that sale or lease is made directly by the
24
manufacturer or by some other person, whether the materials
25
used in the process are owned by the manufacturer or some other
26
person, or whether that sale or lease is made apart from or as

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LRB104 03841 HLH 13865 b
1
an incident to the seller's engaging in the service occupation
2
of producing machines, tools, dies, jigs, patterns, gauges, or
3
other similar items of no commercial value on special order
4
for a particular purchaser. The exemption provided by this
5
paragraph (18) includes production related tangible personal
6
property, as defined in Section 3-50, purchased on or after
7
July 1, 2019. The exemption provided by this paragraph (18)
8
does not include machinery and equipment used in (i) the
9
generation of electricity for wholesale or retail sale; (ii)
10
the generation or treatment of natural or artificial gas for
11
wholesale or retail sale that is delivered to customers
12
through pipes, pipelines, or mains; or (iii) the treatment of
13
water for wholesale or retail sale that is delivered to
14
customers through pipes, pipelines, or mains. The provisions
15
of Public Act 98-583 are declaratory of existing law as to the
16
meaning and scope of this exemption. Beginning on July 1,
17
2017, the exemption provided by this paragraph (18) includes,
18
but is not limited to, graphic arts machinery and equipment,
19
as defined in paragraph (6) of this Section.
20

(19) Personal property delivered to a purchaser or
21
purchaser's donee inside Illinois when the purchase order for
22
that personal property was received by a florist located
23
outside Illinois who has a florist located inside Illinois
24
deliver the personal property.
25

(20) Semen used for artificial insemination of livestock
26
for direct agricultural production.

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(21) Horses, or interests in horses, registered with and
2
meeting the requirements of any of the Arabian Horse Club
3
Registry of America, Appaloosa Horse Club, American Quarter
4
Horse Association, United States Trotting Association, or
5
Jockey Club, as appropriate, used for purposes of breeding or
6
racing for prizes. This item (21) is exempt from the
7
provisions of Section 3-90, and the exemption provided for
8
under this item (21) applies for all periods beginning May 30,
9
1995, but no claim for credit or refund is allowed on or after
10
January 1, 2008 for such taxes paid during the period
11
beginning May 30, 2000 and ending on January 1, 2008.
12

(22) Computers and communications equipment utilized for
13
any hospital purpose and equipment used in the diagnosis,
14
analysis, or treatment of hospital patients purchased by a
15
lessor who leases the equipment, under a lease of one year or
16
longer executed or in effect at the time the lessor would
17
otherwise be subject to the tax imposed by this Act, to a
18
hospital that has been issued an active tax exemption
19
identification number by the Department under Section 1g of
20
the Retailers' Occupation Tax Act. If the equipment is leased
21
in a manner that does not qualify for this exemption or is used
22
in any other non-exempt manner, the lessor shall be liable for
23
the tax imposed under this Act or the Service Use Tax Act, as
24
the case may be, based on the fair market value of the property
25
at the time the non-qualifying use occurs. No lessor shall
26
collect or attempt to collect an amount (however designated)

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1
that purports to reimburse that lessor for the tax imposed by
2
this Act or the Service Use Tax Act, as the case may be, if the
3
tax has not been paid by the lessor. If a lessor improperly
4
collects any such amount from the lessee, the lessee shall
5
have a legal right to claim a refund of that amount from the
6
lessor. If, however, that amount is not refunded to the lessee
7
for any reason, the lessor is liable to pay that amount to the
8
Department.
9

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

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1
lessor. If, however, that amount is not refunded to the lessee
2
for any reason, the lessor is liable to pay that amount to the
3
Department.
4

(24) Beginning with taxable years ending on or after
5
December 31, 1995 and ending with taxable years ending on or
6
before December 31, 2004, personal property that is donated
7
for disaster relief to be used in a State or federally declared
8
disaster area in Illinois or bordering Illinois by a
9
manufacturer or retailer that is registered in this State to a
10
corporation, society, association, foundation, or institution
11
that has been issued a sales tax exemption identification
12
number by the Department that assists victims of the disaster
13
who reside within the declared disaster area.
14

(25) Beginning with taxable years ending on or after
15
December 31, 1995 and ending with taxable years ending on or
16
before December 31, 2004, personal property that is used in
17
the performance of infrastructure repairs in this State,
18
including, but not limited to, municipal roads and streets,
19
access roads, bridges, sidewalks, waste disposal systems,
20
water and sewer line extensions, water distribution and
21
purification facilities, storm water drainage and retention
22
facilities, and sewage treatment facilities, resulting from a
23
State or federally declared disaster in Illinois or bordering
24
Illinois when such repairs are initiated on facilities located
25
in the declared disaster area within 6 months after the
26
disaster.

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1

(26) Beginning July 1, 1999, game or game birds purchased
2
at a "game breeding and hunting preserve area" as that term is
3
used in the Wildlife Code. This paragraph is exempt from the
4
provisions of Section 3-90.
5

(27) A motor vehicle, as that term is defined in Section
6
1-146 of the Illinois Vehicle Code, that is donated to a
7
corporation, limited liability company, society, association,
8
foundation, or institution that is determined by the
9
Department to be organized and operated exclusively for
10
educational purposes. For purposes of this exemption, "a
11
corporation, limited liability company, society, association,
12
foundation, or institution organized and operated exclusively
13
for educational purposes" means all tax-supported public
14
schools, private schools that offer systematic instruction in
15
useful branches of learning by methods common to public
16
schools and that compare favorably in their scope and
17
intensity with the course of study presented in tax-supported
18
schools, and vocational or technical schools or institutes
19
organized and operated exclusively to provide a course of
20
study of not less than 6 weeks duration and designed to prepare
21
individuals to follow a trade or to pursue a manual,
22
technical, mechanical, industrial, business, or commercial
23
occupation.
24

(28) Beginning January 1, 2000, personal property,
25
including food, purchased through fundraising events for the
26
benefit of a public or private elementary or secondary school,

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LRB104 03841 HLH 13865 b
1
a group of those schools, or one or more school districts if
2
the events are sponsored by an entity recognized by the school
3
district that consists primarily of volunteers and includes
4
parents and teachers of the school children. This paragraph
5
does not apply to fundraising events (i) for the benefit of
6
private home instruction or (ii) for which the fundraising
7
entity purchases the personal property sold at the events from
8
another individual or entity that sold the property for the
9
purpose of resale by the fundraising entity and that profits
10
from the sale to the fundraising entity. This paragraph is
11
exempt from the provisions of Section 3-90.
12

(29) Beginning January 1, 2000 and through December 31,
13
2001, new or used automatic vending machines that prepare and
14
serve hot food and beverages, including coffee, soup, and
15
other items, and replacement parts for these machines.
16
Beginning January 1, 2002 and through June 30, 2003, machines
17
and parts for machines used in commercial, coin-operated
18
amusement and vending business if a use or occupation tax is
19
paid on the gross receipts derived from the use of the
20
commercial, coin-operated amusement and vending machines. This
21
paragraph is exempt from the provisions of Section 3-90.
22

(30) Beginning January 1, 2001 and through June 30, 2016,
23
food for human consumption that is to be consumed off the
24
premises where it is sold (other than alcoholic beverages,
25
soft drinks, and food that has been prepared for immediate
26
consumption) and prescription and nonprescription medicines,

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1
drugs, medical appliances, and insulin, urine testing
2
materials, syringes, and needles used by diabetics, for human
3
use, when purchased for use by a person receiving medical
4
assistance under Article V of the Illinois Public Aid Code who
5
resides in a licensed long-term care facility, as defined in
6
the Nursing Home Care Act, or in a licensed facility as defined
7
in the ID/DD Community Care Act, the MC/DD Act, or the
8
Specialized Mental Health Rehabilitation Act of 2013.
9

(31) Beginning on August 2, 2001 (the effective date of
10
Public Act 92-227), computers and communications equipment
11
utilized for any hospital purpose and equipment used in the
12
diagnosis, analysis, or treatment of hospital patients
13
purchased by a lessor who leases the equipment, under a lease
14
of one year or longer executed or in effect at the time the
15
lessor would otherwise be subject to the tax imposed by this
16
Act, to a hospital that has been issued an active tax exemption
17
identification number by the Department under Section 1g of
18
the Retailers' Occupation Tax Act. If the equipment is leased
19
in a manner that does not qualify for this exemption or is used
20
in any other nonexempt manner, the lessor shall be liable for
21
the tax imposed under this Act or the Service Use Tax Act, as
22
the case may be, based on the fair market value of the property
23
at the time the nonqualifying use occurs. No lessor shall
24
collect or attempt to collect an amount (however designated)
25
that purports to reimburse that lessor for the tax imposed by
26
this Act or the Service Use Tax Act, as the case may be, if the

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LRB104 03841 HLH 13865 b
1
tax has not been paid by the lessor. If a lessor improperly
2
collects any such amount from the lessee, the lessee shall
3
have a legal right to claim a refund of that amount from the
4
lessor. If, however, that amount is not refunded to the lessee
5
for any reason, the lessor is liable to pay that amount to the
6
Department. This paragraph is exempt from the provisions of
7
Section 3-90.
8

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

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LRB104 03841 HLH 13865 b
1
lessor. If, however, that amount is not refunded to the lessee
2
for any reason, the lessor is liable to pay that amount to the
3
Department. This paragraph is exempt from the provisions of
4
Section 3-90.
5

(33) On and after July 1, 2003 and through June 30, 2004,
6
the use in this State of motor vehicles of the second division
7
with a gross vehicle weight in excess of 8,000 pounds and that
8
are subject to the commercial distribution fee imposed under
9
Section 3-815.1 of the Illinois Vehicle Code. Beginning on
10
July 1, 2004 and through June 30, 2005, the use in this State
11
of motor vehicles of the second division: (i) with a gross
12
vehicle weight rating in excess of 8,000 pounds; (ii) that are
13
subject to the commercial distribution fee imposed under
14
Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
15
are primarily used for commercial purposes. Through June 30,
16
2005, this exemption applies to repair and replacement parts
17
added after the initial purchase of such a motor vehicle if
18
that motor vehicle is used in a manner that would qualify for
19
the rolling stock exemption otherwise provided for in this
20
Act. For purposes of this paragraph, the term "used for
21
commercial purposes" means the transportation of persons or
22
property in furtherance of any commercial or industrial
23
enterprise, whether for-hire or not.
24

(34) Beginning January 1, 2008, tangible personal property
25
used in the construction or maintenance of a community water
26
supply, as defined under Section 3.145 of the Environmental

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Protection Act, that is operated by a not-for-profit
2
corporation that holds a valid water supply permit issued
3
under Title IV of the Environmental Protection Act. This
4
paragraph is exempt from the provisions of Section 3-90.
5

(35) Beginning January 1, 2010 and continuing through
6
December 31, 2029, materials, parts, equipment, components,
7
and furnishings incorporated into or upon an aircraft as part
8
of the modification, refurbishment, completion, replacement,
9
repair, or maintenance of the aircraft. This exemption
10
includes consumable supplies used in the modification,
11
refurbishment, completion, replacement, repair, and
12
maintenance of aircraft. However, until January 1, 2024, this
13
exemption excludes any materials, parts, equipment,
14
components, and consumable supplies used in the modification,
15
replacement, repair, and maintenance of aircraft engines or
16
power plants, whether such engines or power plants are
17
installed or uninstalled upon any such aircraft. "Consumable
18
supplies" include, but are not limited to, adhesive, tape,
19
sandpaper, general purpose lubricants, cleaning solution,
20
latex gloves, and protective films.
21

Beginning January 1, 2010 and continuing through December
22
31, 2023, this exemption applies only to the use of qualifying
23
tangible personal property by persons who modify, refurbish,
24
complete, repair, replace, or maintain aircraft and who (i)
25
hold an Air Agency Certificate and are empowered to operate an
26
approved repair station by the Federal Aviation

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Administration, (ii) have a Class IV Rating, and (iii) conduct
2
operations in accordance with Part 145 of the Federal Aviation
3
Regulations. From January 1, 2024 through December 31, 2029,
4
this exemption applies only to the use of qualifying tangible
5
personal property by: (A) persons who modify, refurbish,
6
complete, repair, replace, or maintain aircraft and who (i)
7
hold an Air Agency Certificate and are empowered to operate an
8
approved repair station by the Federal Aviation
9
Administration, (ii) have a Class IV Rating, and (iii) conduct
10
operations in accordance with Part 145 of the Federal Aviation
11
Regulations; and (B) persons who engage in the modification,
12
replacement, repair, and maintenance of aircraft engines or
13
power plants without regard to whether or not those persons
14
meet the qualifications of item (A).
15

The exemption does not include aircraft operated by a
16
commercial air carrier providing scheduled passenger air
17
service pursuant to authority issued under Part 121 or Part
18
129 of the Federal Aviation Regulations. The changes made to
19
this paragraph (35) by Public Act 98-534 are declarative of
20
existing law. It is the intent of the General Assembly that the
21
exemption under this paragraph (35) applies continuously from
22
January 1, 2010 through December 31, 2024; however, no claim
23
for credit or refund is allowed for taxes paid as a result of
24
the disallowance of this exemption on or after January 1, 2015
25
and prior to February 5, 2020 (the effective date of Public Act
26
101-629).

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(36) Tangible personal property purchased by a
2
public-facilities corporation, as described in Section
3
11-65-10 of the Illinois Municipal Code, for purposes of
4
constructing or furnishing a municipal convention hall, but
5
only if the legal title to the municipal convention hall is
6
transferred to the municipality without any further
7
consideration by or on behalf of the municipality at the time
8
of the completion of the municipal convention hall or upon the
9
retirement or redemption of any bonds or other debt
10
instruments issued by the public-facilities corporation in
11
connection with the development of the municipal convention
12
hall. This exemption includes existing public-facilities
13
corporations as provided in Section 11-65-25 of the Illinois
14
Municipal Code. This paragraph is exempt from the provisions
15
of Section 3-90.
16

(37) Beginning January 1, 2017 and through December 31,
17
2026, menstrual pads, tampons, and menstrual cups.
18

(38) Merchandise that is subject to the Rental Purchase
19
Agreement Occupation and Use Tax. The purchaser must certify
20
that the item is purchased to be rented subject to a
21
rental-purchase agreement, as defined in the Rental-Purchase
22
Agreement Act, and provide proof of registration under the
23
Rental Purchase Agreement Occupation and Use Tax Act. This
24
paragraph is exempt from the provisions of Section 3-90.
25

(39) Tangible personal property purchased by a purchaser
26
who is exempt from the tax imposed by this Act by operation of

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federal law. This paragraph is exempt from the provisions of
2
Section 3-90.
3

(40) Qualified tangible personal property used in the
4
construction or operation of a data center that has been
5
granted a certificate of exemption by the Department of
6
Commerce and Economic Opportunity, whether that tangible
7
personal property is purchased by the owner, operator, or
8
tenant of the data center or by a contractor or subcontractor
9
of the owner, operator, or tenant. Data centers that would
10
have qualified for a certificate of exemption prior to January
11
1, 2020 had Public Act 101-31 been in effect may apply for and
12
obtain an exemption for subsequent purchases of computer
13
equipment or enabling software purchased or leased to upgrade,
14
supplement, or replace computer equipment or enabling software
15
purchased or leased in the original investment that would have
16
qualified.
17

The Department of Commerce and Economic Opportunity shall
18
grant a certificate of exemption under this item (40) to
19
qualified data centers as defined by Section 605-1025 of the
20
Department of Commerce and Economic Opportunity Law of the
21
Civil Administrative Code of Illinois.
22

For the purposes of this item (40):
23

"Data center" means a building or a series of
24

buildings rehabilitated or constructed to house working
25

servers in one physical location or multiple sites within
26

the State of Illinois.

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"Qualified tangible personal property" means:
2

electrical systems and equipment; climate control and
3

chilling equipment and systems; mechanical systems and
4

equipment; monitoring and secure systems; emergency
5

generators; hardware; computers; servers; data storage
6

devices; network connectivity equipment; racks; cabinets;
7

telecommunications cabling infrastructure; raised floor
8

systems; peripheral components or systems; software;
9

mechanical, electrical, or plumbing systems; battery
10

systems; cooling systems and towers; temperature control
11

systems; other cabling; and other data center
12

infrastructure equipment and systems necessary to operate
13

qualified tangible personal property, including fixtures;
14

and component parts of any of the foregoing, including
15

installation, maintenance, repair, refurbishment, and
16

replacement of qualified tangible personal property to
17

generate, transform, transmit, distribute, or manage
18

electricity necessary to operate qualified tangible
19

personal property; and all other tangible personal
20

property that is essential to the operations of a computer
21

data center. The term "qualified tangible personal
22

property" also includes building materials physically
23

incorporated into the qualifying data center. To document
24

the exemption allowed under this Section, the retailer
25

must obtain from the purchaser a copy of the certificate
26

of eligibility issued by the Department of Commerce and

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Economic Opportunity.
2

This item (40) is exempt from the provisions of Section
3
3-90.
4

(41) Beginning July 1, 2022, breast pumps, breast pump
5
collection and storage supplies, and breast pump kits. This
6
item (41) is exempt from the provisions of Section 3-90. As
7
used in this item (41):
8

"Breast pump" means an electrically controlled or
9

manually controlled pump device designed or marketed to be
10

used to express milk from a human breast during lactation,
11

including the pump device and any battery, AC adapter, or
12

other power supply unit that is used to power the pump
13

device and is packaged and sold with the pump device at the
14

time of sale.
15

"Breast pump collection and storage supplies" means
16

items of tangible personal property designed or marketed
17

to be used in conjunction with a breast pump to collect
18

milk expressed from a human breast and to store collected
19

milk until it is ready for consumption.
20

"Breast pump collection and storage supplies"
21

includes, but is not limited to: breast shields and breast
22

shield connectors; breast pump tubes and tubing adapters;
23

breast pump valves and membranes; backflow protectors and
24

backflow protector adaptors; bottles and bottle caps
25

specific to the operation of the breast pump; and breast
26

milk storage bags.

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"Breast pump collection and storage supplies" does not
2

include: (1) bottles and bottle caps not specific to the
3

operation of the breast pump; (2) breast pump travel bags
4

and other similar carrying accessories, including ice
5

packs, labels, and other similar products; (3) breast pump
6

cleaning supplies; (4) nursing bras, bra pads, breast
7

shells, and other similar products; and (5) creams,
8

ointments, and other similar products that relieve
9

breastfeeding-related symptoms or conditions of the
10

breasts or nipples, unless sold as part of a breast pump
11

kit that is pre-packaged by the breast pump manufacturer
12

or distributor.
13

"Breast pump kit" means a kit that: (1) contains no
14

more than a breast pump, breast pump collection and
15

storage supplies, a rechargeable battery for operating the
16

breast pump, a breastmilk cooler, bottle stands, ice
17

packs, and a breast pump carrying case; and (2) is
18

pre-packaged as a breast pump kit by the breast pump
19

manufacturer or distributor.
20

(42) Tangible personal property sold by or on behalf of
21
the State Treasurer pursuant to the Revised Uniform Unclaimed
22
Property Act. This item (42) is exempt from the provisions of
23
Section 3-90.
24

(43) Beginning on January 1, 2024, tangible personal
25
property purchased by an active duty member of the armed
26
forces of the United States who presents valid military

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identification and purchases the property using a form of
2
payment where the federal government is the payor. The member
3
of the armed forces must complete, at the point of sale, a form
4
prescribed by the Department of Revenue documenting that the
5
transaction is eligible for the exemption under this
6
paragraph. Retailers must keep the form as documentation of
7
the exemption in their records for a period of not less than 6
8
years. "Armed forces of the United States" means the United
9
States Army, Navy, Air Force, Space Force, Marine Corps, or
10
Coast Guard. This paragraph is exempt from the provisions of
11
Section 3-90.
12

(44) Beginning July 1, 2024, home-delivered meals provided
13
to Medicare or Medicaid recipients when payment is made by an
14
intermediary, such as a Medicare Administrative Contractor, a
15
Managed Care Organization, or a Medicare Advantage
16
Organization, pursuant to a government contract. This item
17
(44) is exempt from the provisions of Section 3-90.
18

(45)

(44)
Beginning on January 1, 2026, as further defined
19
in Section 3-10, food for human consumption that is to be
20
consumed off the premises where it is sold (other than
21
alcoholic beverages, food consisting of or infused with adult
22
use cannabis, soft drinks, candy, and food that has been
23
prepared for immediate consumption). This item
(45)

(44)
is
24
exempt from the provisions of Section 3-90.
25

(46)

(44)
Use by the lessee of the following leased
26
tangible personal property:

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(1) software transferred subject to a license that
2

meets the following requirements:
3

(A) it is evidenced by a written agreement signed
4

by the licensor and the customer;
5

(i) an electronic agreement in which the
6

customer accepts the license by means of an
7

electronic signature that is verifiable and can be
8

authenticated and is attached to or made part of
9

the license will comply with this requirement;
10

(ii) a license agreement in which the customer
11

electronically accepts the terms by clicking "I
12

agree" does not comply with this requirement;
13

(B) it restricts the customer's duplication and
14

use of the software;
15

(C) it prohibits the customer from licensing,
16

sublicensing, or transferring the software to a third
17

party (except to a related party) without the
18

permission and continued control of the licensor;
19

(D) the licensor has a policy of providing another
20

copy at minimal or no charge if the customer loses or
21

damages the software, or of permitting the licensee to
22

make and keep an archival copy, and such policy is
23

either stated in the license agreement, supported by
24

the licensor's books and records, or supported by a
25

notarized statement made under penalties of perjury by
26

the licensor; and

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(E) the customer must destroy or return all copies
2

of the software to the licensor at the end of the
3

license period; this provision is deemed to be met, in
4

the case of a perpetual license, without being set
5

forth in the license agreement; and
6

(2) property that is subject to a tax on lease
7

receipts imposed by a home rule unit of local government
8

if the ordinance imposing that tax was adopted prior to
9

January 1, 2023.
10

(47) A motor vehicle of the first division, as defined in
11
Section 1-146 of the Illinois Vehicle Code, that is registered
12
in the State to an Illinois resident who acquired the vehicle
13
while the Illinois resident was stationed outside of this
14
State as an active duty member of the military. This item (47)
15
is exempt from the provisions of Section 3-90.

16

As used in this item (47):

17

"Active duty member of the military" means a service
18
member who undertakes any full-time military training or
19
full-time military duty, no matter how described under federal
20
or State law, for which a service member is ordered to report
21
by the President, by the Governor of a state, commonwealth, or
22
territory of the United States, by an act of Congress, or by
23
any other appropriate military authority.

24

"Illinois resident" means an individual who meets the
25
definition of "resident" under subparagraph (A) of paragraph
26
(20) of subsection (a) of Section 1501 of the Illinois Income

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Tax Act.

2

"Service member" means a person who is a member of any
3
component of the United States Armed Forces or the National
4
Guard of any state, the District of Columbia, a commonwealth,
5
or a territory of the United States.

6
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
7
Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
8
eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
9
Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
10
eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
11
103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
12
7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; revised
13
11-26-24.)

14

Section 10.
The Service Use Tax Act is amended by changing
15
Section 3-5 as follows:

16

(35 ILCS 110/3-5)
17

Sec. 3-5.
Exemptions.
Use of the following tangible
18
personal property is exempt from the tax imposed by this Act:
19

(1) Personal property purchased from a corporation,
20
society, association, foundation, institution, or
21
organization, other than a limited liability company, that is
22
organized and operated as a not-for-profit service enterprise
23
for the benefit of persons 65 years of age or older if the
24
personal property was not purchased by the enterprise for the

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purpose of resale by the enterprise.
2

(2) Personal property purchased by a non-profit Illinois
3
county fair association for use in conducting, operating, or
4
promoting the county fair.
5

(3) Personal property purchased by a not-for-profit arts
6
or cultural organization that establishes, by proof required
7
by the Department by rule, that it has received an exemption
8
under Section 501(c)(3) of the Internal Revenue Code and that
9
is organized and operated primarily for the presentation or
10
support of arts or cultural programming, activities, or
11
services. These organizations include, but are not limited to,
12
music and dramatic arts organizations such as symphony
13
orchestras and theatrical groups, arts and cultural service
14
organizations, local arts councils, visual arts organizations,
15
and media arts organizations. On and after July 1, 2001 (the
16
effective date of Public Act 92-35), however, an entity
17
otherwise eligible for this exemption shall not make tax-free
18
purchases unless it has an active identification number issued
19
by the Department.
20

(4) Legal tender, currency, medallions, or gold or silver
21
coinage issued by the State of Illinois, the government of the
22
United States of America, or the government of any foreign
23
country, and bullion.
24

(5) Until July 1, 2003 and beginning again on September 1,
25
2004 through August 30, 2014, graphic arts machinery and
26
equipment, including repair and replacement parts, both new

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and used, and including that manufactured on special order or
2
purchased for lease, certified by the purchaser to be used
3
primarily for graphic arts production. Equipment includes
4
chemicals or chemicals acting as catalysts but only if the
5
chemicals or chemicals acting as catalysts effect a direct and
6
immediate change upon a graphic arts product. Beginning on
7
July 1, 2017, graphic arts machinery and equipment is included
8
in the manufacturing and assembling machinery and equipment
9
exemption under Section 2 of this Act.
10

(6) Personal property purchased from a teacher-sponsored
11
student organization affiliated with an elementary or
12
secondary school located in Illinois.
13

(7) Farm machinery and equipment, both new and used,
14
including that manufactured on special order, certified by the
15
purchaser to be used primarily for production agriculture or
16
State or federal agricultural programs, including individual
17
replacement parts for the machinery and equipment, including
18
machinery and equipment purchased for lease, and including
19
implements of husbandry defined in Section 1-130 of the
20
Illinois Vehicle Code, farm machinery and agricultural
21
chemical and fertilizer spreaders, and nurse wagons required
22
to be registered under Section 3-809 of the Illinois Vehicle
23
Code, but excluding other motor vehicles required to be
24
registered under the Illinois Vehicle Code. Horticultural
25
polyhouses or hoop houses used for propagating, growing, or
26
overwintering plants shall be considered farm machinery and

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equipment under this item (7). Agricultural chemical tender
2
tanks and dry boxes shall include units sold separately from a
3
motor vehicle required to be licensed and units sold mounted
4
on a motor vehicle required to be licensed if the selling price
5
of the tender is separately stated.
6

Farm machinery and equipment shall include precision
7
farming equipment that is installed or purchased to be
8
installed on farm machinery and equipment, including, but not
9
limited to, tractors, harvesters, sprayers, planters, seeders,
10
or spreaders. Precision farming equipment includes, but is not
11
limited to, soil testing sensors, computers, monitors,
12
software, global positioning and mapping systems, and other
13
such equipment.
14

Farm machinery and equipment also includes computers,
15
sensors, software, and related equipment used primarily in the
16
computer-assisted operation of production agriculture
17
facilities, equipment, and activities such as, but not limited
18
to, the collection, monitoring, and correlation of animal and
19
crop data for the purpose of formulating animal diets and
20
agricultural chemicals.
21

Beginning on January 1, 2024, farm machinery and equipment
22
also includes electrical power generation equipment used
23
primarily for production agriculture.
24

This item (7) is exempt from the provisions of Section
25
3-75.
26

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

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to or used by an air common carrier, certified by the carrier
2
to be used for consumption, shipment, or storage in the
3
conduct of its business as an air common carrier, for a flight
4
destined for or returning from a location or locations outside
5
the United States without regard to previous or subsequent
6
domestic stopovers.
7

Beginning July 1, 2013, fuel and petroleum products sold
8
to or used by an air carrier, certified by the carrier to be
9
used for consumption, shipment, or storage in the conduct of
10
its business as an air common carrier, for a flight that (i) is
11
engaged in foreign trade or is engaged in trade between the
12
United States and any of its possessions and (ii) transports
13
at least one individual or package for hire from the city of
14
origination to the city of final destination on the same
15
aircraft, without regard to a change in the flight number of
16
that aircraft.
17

(9) Proceeds of mandatory service charges separately
18
stated on customers' bills for the purchase and consumption of
19
food and beverages acquired as an incident to the purchase of a
20
service from a serviceman, to the extent that the proceeds of
21
the service charge are in fact turned over as tips or as a
22
substitute for tips to the employees who participate directly
23
in preparing, serving, hosting or cleaning up the food or
24
beverage function with respect to which the service charge is
25
imposed.
26

(10) Until July 1, 2003, oil field exploration, drilling,

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and production equipment, including (i) rigs and parts of
2
rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
3
pipe and tubular goods, including casing and drill strings,
4
(iii) pumps and pump-jack units, (iv) storage tanks and flow
5
lines, (v) any individual replacement part for oil field
6
exploration, drilling, and production equipment, and (vi)
7
machinery and equipment purchased for lease; but excluding
8
motor vehicles required to be registered under the Illinois
9
Vehicle Code.
10

(11) Proceeds from the sale of photoprocessing machinery
11
and equipment, including repair and replacement parts, both
12
new and used, including that manufactured on special order,
13
certified by the purchaser to be used primarily for
14
photoprocessing, and including photoprocessing machinery and
15
equipment purchased for lease.
16

(12) Until July 1, 2028, coal and aggregate exploration,
17
mining, off-highway hauling, processing, maintenance, and
18
reclamation equipment, including replacement parts and
19
equipment, and including equipment purchased for lease, but
20
excluding motor vehicles required to be registered under the
21
Illinois Vehicle Code. The changes made to this Section by
22
Public Act 97-767 apply on and after July 1, 2003, but no claim
23
for credit or refund is allowed on or after August 16, 2013
24
(the effective date of Public Act 98-456) for such taxes paid
25
during the period beginning July 1, 2003 and ending on August
26
16, 2013 (the effective date of Public Act 98-456).

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(13) Semen used for artificial insemination of livestock
2
for direct agricultural production.
3

(14) Horses, or interests in horses, registered with and
4
meeting the requirements of any of the Arabian Horse Club
5
Registry of America, Appaloosa Horse Club, American Quarter
6
Horse Association, United States Trotting Association, or
7
Jockey Club, as appropriate, used for purposes of breeding or
8
racing for prizes. This item (14) is exempt from the
9
provisions of Section 3-75, and the exemption provided for
10
under this item (14) applies for all periods beginning May 30,
11
1995, but no claim for credit or refund is allowed on or after
12
January 1, 2008 (the effective date of Public Act 95-88) for
13
such taxes paid during the period beginning May 30, 2000 and
14
ending on January 1, 2008 (the effective date of Public Act
15
95-88).
16

(15) Computers and communications equipment utilized for
17
any hospital purpose and equipment used in the diagnosis,
18
analysis, or treatment of hospital patients purchased by a
19
lessor who leases the equipment, under a lease of one year or
20
longer executed or in effect at the time the lessor would
21
otherwise be subject to the tax imposed by this Act, to a
22
hospital that has been issued an active tax exemption
23
identification number by the Department under Section 1g of
24
the Retailers' Occupation Tax Act. If the equipment is leased
25
in a manner that does not qualify for this exemption or is used
26
in any other non-exempt manner, the lessor shall be liable for

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the tax imposed under this Act or the Use Tax Act, as the case
2
may be, based on the fair market value of the property at the
3
time the non-qualifying use occurs. No lessor shall collect or
4
attempt to collect an amount (however designated) that
5
purports to reimburse that lessor for the tax imposed by this
6
Act or the Use Tax Act, as the case may be, if the tax has not
7
been paid by the lessor. If a lessor improperly collects any
8
such amount from the lessee, the lessee shall have a legal
9
right to claim a refund of that amount from the lessor. If,
10
however, that amount is not refunded to the lessee for any
11
reason, the lessor is liable to pay that amount to the
12
Department.
13

(16) Personal property purchased by a lessor who leases
14
the property, under a lease of one year or longer executed or
15
in effect at the time the lessor would otherwise be subject to
16
the tax imposed by this Act, to a governmental body that has
17
been issued an active tax exemption identification number by
18
the Department under Section 1g of the Retailers' Occupation
19
Tax Act. If the property is leased in a manner that does not
20
qualify for this exemption or is used in any other non-exempt
21
manner, the lessor shall be liable for the tax imposed under
22
this Act or the Use Tax Act, as the case may be, based on the
23
fair market value of the property at the time the
24
non-qualifying use occurs. No lessor shall collect or attempt
25
to collect an amount (however designated) that purports to
26
reimburse that lessor for the tax imposed by this Act or the

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Use Tax Act, as the case may be, if the tax has not been paid
2
by the lessor. If a lessor improperly collects any such amount
3
from the lessee, the lessee shall have a legal right to claim a
4
refund of that amount from the lessor. If, however, that
5
amount is not refunded to the lessee for any reason, the lessor
6
is liable to pay that amount to the Department.
7

(17) Beginning with taxable years ending on or after
8
December 31, 1995 and ending with taxable years ending on or
9
before December 31, 2004, personal property that is donated
10
for disaster relief to be used in a State or federally declared
11
disaster area in Illinois or bordering Illinois by a
12
manufacturer or retailer that is registered in this State to a
13
corporation, society, association, foundation, or institution
14
that has been issued a sales tax exemption identification
15
number by the Department that assists victims of the disaster
16
who reside within the declared disaster area.
17

(18) Beginning with taxable years ending on or after
18
December 31, 1995 and ending with taxable years ending on or
19
before December 31, 2004, personal property that is used in
20
the performance of infrastructure repairs in this State,
21
including, but not limited to, municipal roads and streets,
22
access roads, bridges, sidewalks, waste disposal systems,
23
water and sewer line extensions, water distribution and
24
purification facilities, storm water drainage and retention
25
facilities, and sewage treatment facilities, resulting from a
26
State or federally declared disaster in Illinois or bordering

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Illinois when such repairs are initiated on facilities located
2
in the declared disaster area within 6 months after the
3
disaster.
4

(19) Beginning July 1, 1999, game or game birds purchased
5
at a "game breeding and hunting preserve area" as that term is
6
used in the Wildlife Code. This paragraph is exempt from the
7
provisions of Section 3-75.
8

(20) A motor vehicle, as that term is defined in Section
9
1-146 of the Illinois Vehicle Code, that is donated to a
10
corporation, limited liability company, society, association,
11
foundation, or institution that is determined by the
12
Department to be organized and operated exclusively for
13
educational purposes. For purposes of this exemption, "a
14
corporation, limited liability company, society, association,
15
foundation, or institution organized and operated exclusively
16
for educational purposes" means all tax-supported public
17
schools, private schools that offer systematic instruction in
18
useful branches of learning by methods common to public
19
schools and that compare favorably in their scope and
20
intensity with the course of study presented in tax-supported
21
schools, and vocational or technical schools or institutes
22
organized and operated exclusively to provide a course of
23
study of not less than 6 weeks duration and designed to prepare
24
individuals to follow a trade or to pursue a manual,
25
technical, mechanical, industrial, business, or commercial
26
occupation.

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(21) Beginning January 1, 2000, personal property,
2
including food, purchased through fundraising events for the
3
benefit of a public or private elementary or secondary school,
4
a group of those schools, or one or more school districts if
5
the events are sponsored by an entity recognized by the school
6
district that consists primarily of volunteers and includes
7
parents and teachers of the school children. This paragraph
8
does not apply to fundraising events (i) for the benefit of
9
private home instruction or (ii) for which the fundraising
10
entity purchases the personal property sold at the events from
11
another individual or entity that sold the property for the
12
purpose of resale by the fundraising entity and that profits
13
from the sale to the fundraising entity. This paragraph is
14
exempt from the provisions of Section 3-75.
15

(22) Beginning January 1, 2000 and through December 31,
16
2001, new or used automatic vending machines that prepare and
17
serve hot food and beverages, including coffee, soup, and
18
other items, and replacement parts for these machines.
19
Beginning January 1, 2002 and through June 30, 2003, machines
20
and parts for machines used in commercial, coin-operated
21
amusement and vending business if a use or occupation tax is
22
paid on the gross receipts derived from the use of the
23
commercial, coin-operated amusement and vending machines. This
24
paragraph is exempt from the provisions of Section 3-75.
25

(23) Beginning August 23, 2001 and through June 30, 2016,
26
food for human consumption that is to be consumed off the

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premises where it is sold (other than alcoholic beverages,
2
soft drinks, and food that has been prepared for immediate
3
consumption) and prescription and nonprescription medicines,
4
drugs, medical appliances, and insulin, urine testing
5
materials, syringes, and needles used by diabetics, for human
6
use, when purchased for use by a person receiving medical
7
assistance under Article V of the Illinois Public Aid Code who
8
resides in a licensed long-term care facility, as defined in
9
the Nursing Home Care Act, or in a licensed facility as defined
10
in the ID/DD Community Care Act, the MC/DD Act, or the
11
Specialized Mental Health Rehabilitation Act of 2013.
12

(24) Beginning on August 2, 2001 (the effective date of
13
Public Act 92-227), computers and communications equipment
14
utilized for any hospital purpose and equipment used in the
15
diagnosis, analysis, or treatment of hospital patients
16
purchased by a lessor who leases the equipment, under a lease
17
of one year or longer executed or in effect at the time the
18
lessor would otherwise be subject to the tax imposed by this
19
Act, to a hospital that has been issued an active tax exemption
20
identification number by the Department under Section 1g of
21
the Retailers' Occupation Tax Act. If the equipment is leased
22
in a manner that does not qualify for this exemption or is used
23
in any other nonexempt manner, the lessor shall be liable for
24
the tax imposed under this Act or the Use Tax Act, as the case
25
may be, based on the fair market value of the property at the
26
time the nonqualifying use occurs. No lessor shall collect or

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attempt to collect an amount (however designated) that
2
purports to reimburse that lessor for the tax imposed by this
3
Act or the Use Tax Act, as the case may be, if the tax has not
4
been paid by the lessor. If a lessor improperly collects any
5
such amount from the lessee, the lessee shall have a legal
6
right to claim a refund of that amount from the lessor. If,
7
however, that amount is not refunded to the lessee for any
8
reason, the lessor is liable to pay that amount to the
9
Department. This paragraph is exempt from the provisions of
10
Section 3-75.
11

(25) Beginning on August 2, 2001 (the effective date of
12
Public Act 92-227), personal property purchased by a lessor
13
who leases the property, under a lease of one year or longer
14
executed or in effect at the time the lessor would otherwise be
15
subject to the tax imposed by this Act, to a governmental body
16
that has been issued an active tax exemption identification
17
number by the Department under Section 1g of the Retailers'
18
Occupation Tax Act. If the property is leased in a manner that
19
does not qualify for this exemption or is used in any other
20
nonexempt manner, the lessor shall be liable for the tax
21
imposed under this Act or the Use Tax Act, as the case may be,
22
based on the fair market value of the property at the time the
23
nonqualifying use occurs. No lessor shall collect or attempt
24
to collect an amount (however designated) that purports to
25
reimburse that lessor for the tax imposed by this Act or the
26
Use Tax Act, as the case may be, if the tax has not been paid

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by the lessor. If a lessor improperly collects any such amount
2
from the lessee, the lessee shall have a legal right to claim a
3
refund of that amount from the lessor. If, however, that
4
amount is not refunded to the lessee for any reason, the lessor
5
is liable to pay that amount to the Department. This paragraph
6
is exempt from the provisions of Section 3-75.
7

(26) Beginning January 1, 2008, tangible personal property
8
used in the construction or maintenance of a community water
9
supply, as defined under Section 3.145 of the Environmental
10
Protection Act, that is operated by a not-for-profit
11
corporation that holds a valid water supply permit issued
12
under Title IV of the Environmental Protection Act. This
13
paragraph is exempt from the provisions of Section 3-75.
14

(27) Beginning January 1, 2010 and continuing through
15
December 31, 2029, materials, parts, equipment, components,
16
and furnishings incorporated into or upon an aircraft as part
17
of the modification, refurbishment, completion, replacement,
18
repair, or maintenance of the aircraft. This exemption
19
includes consumable supplies used in the modification,
20
refurbishment, completion, replacement, repair, and
21
maintenance of aircraft. However, until January 1, 2024, this
22
exemption excludes any materials, parts, equipment,
23
components, and consumable supplies used in the modification,
24
replacement, repair, and maintenance of aircraft engines or
25
power plants, whether such engines or power plants are
26
installed or uninstalled upon any such aircraft. "Consumable

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supplies" include, but are not limited to, adhesive, tape,
2
sandpaper, general purpose lubricants, cleaning solution,
3
latex gloves, and protective films.
4

Beginning January 1, 2010 and continuing through December
5
31, 2023, this exemption applies only to the use of qualifying
6
tangible personal property transferred incident to the
7
modification, refurbishment, completion, replacement, repair,
8
or maintenance of aircraft by persons who (i) hold an Air
9
Agency Certificate and are empowered to operate an approved
10
repair station by the Federal Aviation Administration, (ii)
11
have a Class IV Rating, and (iii) conduct operations in
12
accordance with Part 145 of the Federal Aviation Regulations.
13
From January 1, 2024 through December 31, 2029, this exemption
14
applies only to the use of qualifying tangible personal
15
property transferred incident to: (A) the modification,
16
refurbishment, completion, repair, replacement, or maintenance
17
of an aircraft by persons who (i) hold an Air Agency
18
Certificate and are empowered to operate an approved repair
19
station by the Federal Aviation Administration, (ii) have a
20
Class IV Rating, and (iii) conduct operations in accordance
21
with Part 145 of the Federal Aviation Regulations; and (B) the
22
modification, replacement, repair, and maintenance of aircraft
23
engines or power plants without regard to whether or not those
24
persons meet the qualifications of item (A).
25

The exemption does not include aircraft operated by a
26
commercial air carrier providing scheduled passenger air

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service pursuant to authority issued under Part 121 or Part
2
129 of the Federal Aviation Regulations. The changes made to
3
this paragraph (27) by Public Act 98-534 are declarative of
4
existing law. It is the intent of the General Assembly that the
5
exemption under this paragraph (27) applies continuously from
6
January 1, 2010 through December 31, 2024; however, no claim
7
for credit or refund is allowed for taxes paid as a result of
8
the disallowance of this exemption on or after January 1, 2015
9
and prior to February 5, 2020 (the effective date of Public Act
10
101-629).
11

(28) Tangible personal property purchased by a
12
public-facilities corporation, as described in Section
13
11-65-10 of the Illinois Municipal Code, for purposes of
14
constructing or furnishing a municipal convention hall, but
15
only if the legal title to the municipal convention hall is
16
transferred to the municipality without any further
17
consideration by or on behalf of the municipality at the time
18
of the completion of the municipal convention hall or upon the
19
retirement or redemption of any bonds or other debt
20
instruments issued by the public-facilities corporation in
21
connection with the development of the municipal convention
22
hall. This exemption includes existing public-facilities
23
corporations as provided in Section 11-65-25 of the Illinois
24
Municipal Code. This paragraph is exempt from the provisions
25
of Section 3-75.
26

(29) Beginning January 1, 2017 and through December 31,

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2026, menstrual pads, tampons, and menstrual cups.
2

(30) Tangible personal property transferred to a purchaser
3
who is exempt from the tax imposed by this Act by operation of
4
federal law. This paragraph is exempt from the provisions of
5
Section 3-75.
6

(31) Qualified tangible personal property used in the
7
construction or operation of a data center that has been
8
granted a certificate of exemption by the Department of
9
Commerce and Economic Opportunity, whether that tangible
10
personal property is purchased by the owner, operator, or
11
tenant of the data center or by a contractor or subcontractor
12
of the owner, operator, or tenant. Data centers that would
13
have qualified for a certificate of exemption prior to January
14
1, 2020 had Public Act 101-31 been in effect, may apply for and
15
obtain an exemption for subsequent purchases of computer
16
equipment or enabling software purchased or leased to upgrade,
17
supplement, or replace computer equipment or enabling software
18
purchased or leased in the original investment that would have
19
qualified.
20

The Department of Commerce and Economic Opportunity shall
21
grant a certificate of exemption under this item (31) to
22
qualified data centers as defined by Section 605-1025 of the
23
Department of Commerce and Economic Opportunity Law of the
24
Civil Administrative Code of Illinois.
25

For the purposes of this item (31):
26

"Data center" means a building or a series of

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1

buildings rehabilitated or constructed to house working
2

servers in one physical location or multiple sites within
3

the State of Illinois.
4

"Qualified tangible personal property" means:
5

electrical systems and equipment; climate control and
6

chilling equipment and systems; mechanical systems and
7

equipment; monitoring and secure systems; emergency
8

generators; hardware; computers; servers; data storage
9

devices; network connectivity equipment; racks; cabinets;
10

telecommunications cabling infrastructure; raised floor
11

systems; peripheral components or systems; software;
12

mechanical, electrical, or plumbing systems; battery
13

systems; cooling systems and towers; temperature control
14

systems; other cabling; and other data center
15

infrastructure equipment and systems necessary to operate
16

qualified tangible personal property, including fixtures;
17

and component parts of any of the foregoing, including
18

installation, maintenance, repair, refurbishment, and
19

replacement of qualified tangible personal property to
20

generate, transform, transmit, distribute, or manage
21

electricity necessary to operate qualified tangible
22

personal property; and all other tangible personal
23

property that is essential to the operations of a computer
24

data center. The term "qualified tangible personal
25

property" also includes building materials physically
26

incorporated into the qualifying data center. To document

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the exemption allowed under this Section, the retailer
2

must obtain from the purchaser a copy of the certificate
3

of eligibility issued by the Department of Commerce and
4

Economic Opportunity.
5

This item (31) is exempt from the provisions of Section
6
3-75.
7

(32) Beginning July 1, 2022, breast pumps, breast pump
8
collection and storage supplies, and breast pump kits. This
9
item (32) is exempt from the provisions of Section 3-75. As
10
used in this item (32):
11

"Breast pump" means an electrically controlled or
12

manually controlled pump device designed or marketed to be
13

used to express milk from a human breast during lactation,
14

including the pump device and any battery, AC adapter, or
15

other power supply unit that is used to power the pump
16

device and is packaged and sold with the pump device at the
17

time of sale.
18

"Breast pump collection and storage supplies" means
19

items of tangible personal property designed or marketed
20

to be used in conjunction with a breast pump to collect
21

milk expressed from a human breast and to store collected
22

milk until it is ready for consumption.
23

"Breast pump collection and storage supplies"
24

includes, but is not limited to: breast shields and breast
25

shield connectors; breast pump tubes and tubing adapters;
26

breast pump valves and membranes; backflow protectors and

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backflow protector adaptors; bottles and bottle caps
2

specific to the operation of the breast pump; and breast
3

milk storage bags.
4

"Breast pump collection and storage supplies" does not
5

include: (1) bottles and bottle caps not specific to the
6

operation of the breast pump; (2) breast pump travel bags
7

and other similar carrying accessories, including ice
8

packs, labels, and other similar products; (3) breast pump
9

cleaning supplies; (4) nursing bras, bra pads, breast
10

shells, and other similar products; and (5) creams,
11

ointments, and other similar products that relieve
12

breastfeeding-related symptoms or conditions of the
13

breasts or nipples, unless sold as part of a breast pump
14

kit that is pre-packaged by the breast pump manufacturer
15

or distributor.
16

"Breast pump kit" means a kit that: (1) contains no
17

more than a breast pump, breast pump collection and
18

storage supplies, a rechargeable battery for operating the
19

breast pump, a breastmilk cooler, bottle stands, ice
20

packs, and a breast pump carrying case; and (2) is
21

pre-packaged as a breast pump kit by the breast pump
22

manufacturer or distributor.
23

(33) Tangible personal property sold by or on behalf of
24
the State Treasurer pursuant to the Revised Uniform Unclaimed
25
Property Act. This item (33) is exempt from the provisions of
26
Section 3-75.

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(34) Beginning on January 1, 2024, tangible personal
2
property purchased by an active duty member of the armed
3
forces of the United States who presents valid military
4
identification and purchases the property using a form of
5
payment where the federal government is the payor. The member
6
of the armed forces must complete, at the point of sale, a form
7
prescribed by the Department of Revenue documenting that the
8
transaction is eligible for the exemption under this
9
paragraph. Retailers must keep the form as documentation of
10
the exemption in their records for a period of not less than 6
11
years. "Armed forces of the United States" means the United
12
States Army, Navy, Air Force, Space Force, Marine Corps, or
13
Coast Guard. This paragraph is exempt from the provisions of
14
Section 3-75.
15

(35) Beginning July 1, 2024, home-delivered meals provided
16
to Medicare or Medicaid recipients when payment is made by an
17
intermediary, such as a Medicare Administrative Contractor, a
18
Managed Care Organization, or a Medicare Advantage
19
Organization, pursuant to a government contract. This
20
paragraph (35) is exempt from the provisions of Section 3-75.
21

(36)

(35)
Beginning on January 1, 2026, as further defined
22
in Section 3-10, food prepared for immediate consumption and
23
transferred incident to a sale of service subject to this Act
24
or the Service Occupation Tax Act by an entity licensed under
25
the Hospital Licensing Act, the Nursing Home Care Act, the
26
Assisted Living and Shared Housing Act, the ID/DD Community

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Care Act, the MC/DD Act, the Specialized Mental Health
2
Rehabilitation Act of 2013, or the Child Care Act of 1969
,
or
3
by an entity that holds a permit issued pursuant to the Life
4
Care Facilities Act. This item
(36)

(35)
is exempt from the
5
provisions of Section 3-75.
6

(37)

(36)
Beginning on January 1, 2026, as further defined
7
in Section 3-10, food for human consumption that is to be
8
consumed off the premises where it is sold (other than
9
alcoholic beverages, food consisting of or infused with adult
10
use cannabis, soft drinks, candy, and food that has been
11
prepared for immediate consumption). This item
(37)

(36)
is
12
exempt from the provisions of Section 3-75.
13

(38)

(35)
Use by a lessee of the following leased tangible
14
personal property:
15

(1) software transferred subject to a license that
16

meets the following requirements:
17

(A) it is evidenced by a written agreement signed
18

by the licensor and the customer;
19

(i) an electronic agreement in which the
20

customer accepts the license by means of an
21

electronic signature that is verifiable and can be
22

authenticated and is attached to or made part of
23

the license will comply with this requirement;
24

(ii) a license agreement in which the customer
25

electronically accepts the terms by clicking "I
26

agree" does not comply with this requirement;

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(B) it restricts the customer's duplication and
2

use of the software;
3

(C) it prohibits the customer from licensing,
4

sublicensing, or transferring the software to a third
5

party (except to a related party) without the
6

permission and continued control of the licensor;
7

(D) the licensor has a policy of providing another
8

copy at minimal or no charge if the customer loses or
9

damages the software, or of permitting the licensee to
10

make and keep an archival copy, and such policy is
11

either stated in the license agreement, supported by
12

the licensor's books and records, or supported by a
13

notarized statement made under penalties of perjury by
14

the licensor; and
15

(E) the customer must destroy or return all copies
16

of the software to the licensor at the end of the
17

license period; this provision is deemed to be met, in
18

the case of a perpetual license, without being set
19

forth in the license agreement; and
20

(2) property that is subject to a tax on lease
21

receipts imposed by a home rule unit of local government
22

if the ordinance imposing that tax was adopted prior to
23

January 1, 2023.
24

(39) A motor vehicle of the first division, as defined in
25
Section 1-146 of the Illinois Vehicle Code, that is registered
26
in the State to an Illinois resident who acquired the vehicle

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while the Illinois resident was stationed outside of this
2
State as an active duty member of the military. This item (39)
3
is exempt from the provisions of Section 3-75.

4

As used in this item (39):

5

"Active duty member of the military" means a service
6
member who undertakes any full-time military training or
7
full-time military duty, no matter how described under federal
8
or State law, for which a service member is ordered to report
9
by the President, by the Governor of a state, commonwealth, or
10
territory of the United States, by an act of Congress, or by
11
any other appropriate military authority.

12

"Illinois resident" means an individual who meets the
13
definition of "resident" under subparagraph (A) of paragraph
14
(20) of subsection (a) of Section 1501 of the Illinois Income
15
Tax Act.

16

"Service member" means a person who is a member of any
17
component of the United States Armed Forces or the National
18
Guard of any state, the District of Columbia, a commonwealth,
19
or a territory of the United States.

20
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
21
Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
22
75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
23
Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
24
eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
25
103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
26
7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995,

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eff. 8-9-24; revised 11-26-24.)

2

Section 15.
The Service Occupation Tax Act is amended by
3
changing Section 3-5 as follows:

4

(35 ILCS 115/3-5)
5

Sec. 3-5.
Exemptions.
The following tangible personal
6
property is exempt from the tax imposed by this Act:
7

(1) Personal property sold by a corporation, society,
8
association, foundation, institution, or organization, other
9
than a limited liability company, that is organized and
10
operated as a not-for-profit service enterprise for the
11
benefit of persons 65 years of age or older if the personal
12
property was not purchased by the enterprise for the purpose
13
of resale by the enterprise.
14

(2) Personal property purchased by a not-for-profit
15
Illinois county fair association for use in conducting,
16
operating, or promoting the county fair.
17

(3) Personal property purchased by any not-for-profit arts
18
or cultural organization that establishes, by proof required
19
by the Department by rule, that it has received an exemption
20
under Section 501(c)(3) of the Internal Revenue Code and that
21
is organized and operated primarily for the presentation or
22
support of arts or cultural programming, activities, or
23
services. These organizations include, but are not limited to,
24
music and dramatic arts organizations such as symphony

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orchestras and theatrical groups, arts and cultural service
2
organizations, local arts councils, visual arts organizations,
3
and media arts organizations. On and after July 1, 2001 (the
4
effective date of Public Act 92-35), however, an entity
5
otherwise eligible for this exemption shall not make tax-free
6
purchases unless it has an active identification number issued
7
by the Department.
8

(4) Legal tender, currency, medallions, or gold or silver
9
coinage issued by the State of Illinois, the government of the
10
United States of America, or the government of any foreign
11
country, and bullion.
12

(5) Until July 1, 2003 and beginning again on September 1,
13
2004 through August 30, 2014, graphic arts machinery and
14
equipment, including repair and replacement parts, both new
15
and used, and including that manufactured on special order or
16
purchased for lease, certified by the purchaser to be used
17
primarily for graphic arts production. Equipment includes
18
chemicals or chemicals acting as catalysts but only if the
19
chemicals or chemicals acting as catalysts effect a direct and
20
immediate change upon a graphic arts product. Beginning on
21
July 1, 2017, graphic arts machinery and equipment is included
22
in the manufacturing and assembling machinery and equipment
23
exemption under Section 2 of this Act.
24

(6) Personal property sold by a teacher-sponsored student
25
organization affiliated with an elementary or secondary school
26
located in Illinois.

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(7) Farm machinery and equipment, both new and used,
2
including that manufactured on special order, certified by the
3
purchaser to be used primarily for production agriculture or
4
State or federal agricultural programs, including individual
5
replacement parts for the machinery and equipment, including
6
machinery and equipment purchased for lease, and including
7
implements of husbandry defined in Section 1-130 of the
8
Illinois Vehicle Code, farm machinery and agricultural
9
chemical and fertilizer spreaders, and nurse wagons required
10
to be registered under Section 3-809 of the Illinois Vehicle
11
Code, but excluding other motor vehicles required to be
12
registered under the Illinois Vehicle Code. Horticultural
13
polyhouses or hoop houses used for propagating, growing, or
14
overwintering plants shall be considered farm machinery and
15
equipment under this item (7). Agricultural chemical tender
16
tanks and dry boxes shall include units sold separately from a
17
motor vehicle required to be licensed and units sold mounted
18
on a motor vehicle required to be licensed if the selling price
19
of the tender is separately stated.
20

Farm machinery and equipment shall include precision
21
farming equipment that is installed or purchased to be
22
installed on farm machinery and equipment, including, but not
23
limited to, tractors, harvesters, sprayers, planters, seeders,
24
or spreaders. Precision farming equipment includes, but is not
25
limited to, soil testing sensors, computers, monitors,
26
software, global positioning and mapping systems, and other

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such equipment.
2

Farm machinery and equipment also includes computers,
3
sensors, software, and related equipment used primarily in the
4
computer-assisted operation of production agriculture
5
facilities, equipment, and activities such as, but not limited
6
to, the collection, monitoring, and correlation of animal and
7
crop data for the purpose of formulating animal diets and
8
agricultural chemicals.
9

Beginning on January 1, 2024, farm machinery and equipment
10
also includes electrical power generation equipment used
11
primarily for production agriculture.
12

This item (7) is exempt from the provisions of Section
13
3-55.
14

(8) Until June 30, 2013, fuel and petroleum products sold
15
to or used by an air common carrier, certified by the carrier
16
to be used for consumption, shipment, or storage in the
17
conduct of its business as an air common carrier, for a flight
18
destined for or returning from a location or locations outside
19
the United States without regard to previous or subsequent
20
domestic stopovers.
21

Beginning July 1, 2013, fuel and petroleum products sold
22
to or used by an air carrier, certified by the carrier to be
23
used for consumption, shipment, or storage in the conduct of
24
its business as an air common carrier, for a flight that (i) is
25
engaged in foreign trade or is engaged in trade between the
26
United States and any of its possessions and (ii) transports

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at least one individual or package for hire from the city of
2
origination to the city of final destination on the same
3
aircraft, without regard to a change in the flight number of
4
that aircraft.
5

(9) Proceeds of mandatory service charges separately
6
stated on customers' bills for the purchase and consumption of
7
food and beverages, to the extent that the proceeds of the
8
service charge are in fact turned over as tips or as a
9
substitute for tips to the employees who participate directly
10
in preparing, serving, hosting or cleaning up the food or
11
beverage function with respect to which the service charge is
12
imposed.
13

(10) Until July 1, 2003, oil field exploration, drilling,
14
and production equipment, including (i) rigs and parts of
15
rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
16
pipe and tubular goods, including casing and drill strings,
17
(iii) pumps and pump-jack units, (iv) storage tanks and flow
18
lines, (v) any individual replacement part for oil field
19
exploration, drilling, and production equipment, and (vi)
20
machinery and equipment purchased for lease; but excluding
21
motor vehicles required to be registered under the Illinois
22
Vehicle Code.
23

(11) Photoprocessing machinery and equipment, including
24
repair and replacement parts, both new and used, including
25
that manufactured on special order, certified by the purchaser
26
to be used primarily for photoprocessing, and including

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photoprocessing machinery and equipment purchased for lease.
2

(12) Until July 1, 2028, coal and aggregate exploration,
3
mining, off-highway hauling, processing, maintenance, and
4
reclamation equipment, including replacement parts and
5
equipment, and including equipment purchased for lease, but
6
excluding motor vehicles required to be registered under the
7
Illinois Vehicle Code. The changes made to this Section by
8
Public Act 97-767 apply on and after July 1, 2003, but no claim
9
for credit or refund is allowed on or after August 16, 2013
10
(the effective date of Public Act 98-456) for such taxes paid
11
during the period beginning July 1, 2003 and ending on August
12
16, 2013 (the effective date of Public Act 98-456).
13

(13) Beginning January 1, 1992 and through June 30, 2016,
14
food for human consumption that is to be consumed off the
15
premises where it is sold (other than alcoholic beverages,
16
soft drinks and food that has been prepared for immediate
17
consumption) and prescription and non-prescription medicines,
18
drugs, medical appliances, and insulin, urine testing
19
materials, syringes, and needles used by diabetics, for human
20
use, when purchased for use by a person receiving medical
21
assistance under Article V of the Illinois Public Aid Code who
22
resides in a licensed long-term care facility, as defined in
23
the Nursing Home Care Act, or in a licensed facility as defined
24
in the ID/DD Community Care Act, the MC/DD Act, or the
25
Specialized Mental Health Rehabilitation Act of 2013.
26

(14) Semen used for artificial insemination of livestock

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for direct agricultural production.
2

(15) Horses, or interests in horses, registered with and
3
meeting the requirements of any of the Arabian Horse Club
4
Registry of America, Appaloosa Horse Club, American Quarter
5
Horse Association, United States Trotting Association, or
6
Jockey Club, as appropriate, used for purposes of breeding or
7
racing for prizes. This item (15) is exempt from the
8
provisions of Section 3-55, and the exemption provided for
9
under this item (15) applies for all periods beginning May 30,
10
1995, but no claim for credit or refund is allowed on or after
11
January 1, 2008 (the effective date of Public Act 95-88) for
12
such taxes paid during the period beginning May 30, 2000 and
13
ending on January 1, 2008 (the effective date of Public Act
14
95-88).
15

(16) Computers and communications equipment utilized for
16
any hospital purpose and equipment used in the diagnosis,
17
analysis, or treatment of hospital patients sold to a lessor
18
who leases the equipment, under a lease of one year or longer
19
executed or in effect at the time of the purchase, to a
20
hospital that has been issued an active tax exemption
21
identification number by the Department under Section 1g of
22
the Retailers' Occupation Tax Act.
23

(17) Personal property sold to a lessor who leases the
24
property, under a lease of one year or longer executed or in
25
effect at the time of the purchase, to a governmental body that
26
has been issued an active tax exemption identification number

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by the Department under Section 1g of the Retailers'
2
Occupation Tax Act.
3

(18) Beginning with taxable years ending on or after
4
December 31, 1995 and ending with taxable years ending on or
5
before December 31, 2004, personal property that is donated
6
for disaster relief to be used in a State or federally declared
7
disaster area in Illinois or bordering Illinois by a
8
manufacturer or retailer that is registered in this State to a
9
corporation, society, association, foundation, or institution
10
that has been issued a sales tax exemption identification
11
number by the Department that assists victims of the disaster
12
who reside within the declared disaster area.
13

(19) Beginning with taxable years ending on or after
14
December 31, 1995 and ending with taxable years ending on or
15
before December 31, 2004, personal property that is used in
16
the performance of infrastructure repairs in this State,
17
including, but not limited to, municipal roads and streets,
18
access roads, bridges, sidewalks, waste disposal systems,
19
water and sewer line extensions, water distribution and
20
purification facilities, storm water drainage and retention
21
facilities, and sewage treatment facilities, resulting from a
22
State or federally declared disaster in Illinois or bordering
23
Illinois when such repairs are initiated on facilities located
24
in the declared disaster area within 6 months after the
25
disaster.
26

(20) Beginning July 1, 1999, game or game birds sold at a

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"game breeding and hunting preserve area" as that term is used
2
in the Wildlife Code. This paragraph is exempt from the
3
provisions of Section 3-55.
4

(21) A motor vehicle, as that term is defined in Section
5
1-146 of the Illinois Vehicle Code, that is donated to a
6
corporation, limited liability company, society, association,
7
foundation, or institution that is determined by the
8
Department to be organized and operated exclusively for
9
educational purposes. For purposes of this exemption, "a
10
corporation, limited liability company, society, association,
11
foundation, or institution organized and operated exclusively
12
for educational purposes" means all tax-supported public
13
schools, private schools that offer systematic instruction in
14
useful branches of learning by methods common to public
15
schools and that compare favorably in their scope and
16
intensity with the course of study presented in tax-supported
17
schools, and vocational or technical schools or institutes
18
organized and operated exclusively to provide a course of
19
study of not less than 6 weeks duration and designed to prepare
20
individuals to follow a trade or to pursue a manual,
21
technical, mechanical, industrial, business, or commercial
22
occupation.
23

(22) Beginning January 1, 2000, personal property,
24
including food, purchased through fundraising events for the
25
benefit of a public or private elementary or secondary school,
26
a group of those schools, or one or more school districts if

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the events are sponsored by an entity recognized by the school
2
district that consists primarily of volunteers and includes
3
parents and teachers of the school children. This paragraph
4
does not apply to fundraising events (i) for the benefit of
5
private home instruction or (ii) for which the fundraising
6
entity purchases the personal property sold at the events from
7
another individual or entity that sold the property for the
8
purpose of resale by the fundraising entity and that profits
9
from the sale to the fundraising entity. This paragraph is
10
exempt from the provisions of Section 3-55.
11

(23) Beginning January 1, 2000 and through December 31,
12
2001, new or used automatic vending machines that prepare and
13
serve hot food and beverages, including coffee, soup, and
14
other items, and replacement parts for these machines.
15
Beginning January 1, 2002 and through June 30, 2003, machines
16
and parts for machines used in commercial, coin-operated
17
amusement and vending business if a use or occupation tax is
18
paid on the gross receipts derived from the use of the
19
commercial, coin-operated amusement and vending machines. This
20
paragraph is exempt from the provisions of Section 3-55.
21

(24) Beginning on August 2, 2001 (the effective date of
22
Public Act 92-227), computers and communications equipment
23
utilized for any hospital purpose and equipment used in the
24
diagnosis, analysis, or treatment of hospital patients sold to
25
a lessor who leases the equipment, under a lease of one year or
26
longer executed or in effect at the time of the purchase, to a

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hospital that has been issued an active tax exemption
2
identification number by the Department under Section 1g of
3
the Retailers' Occupation Tax Act. This paragraph is exempt
4
from the provisions of Section 3-55.
5

(25) Beginning on August 2, 2001 (the effective date of
6
Public Act 92-227), personal property sold to a lessor who
7
leases the property, under a lease of one year or longer
8
executed or in effect at the time of the purchase, to a
9
governmental body that has been issued an active tax exemption
10
identification number by the Department under Section 1g of
11
the Retailers' Occupation Tax Act. This paragraph is exempt
12
from the provisions of Section 3-55.
13

(26) Beginning on January 1, 2002 and through June 30,
14
2016, tangible personal property purchased from an Illinois
15
retailer by a taxpayer engaged in centralized purchasing
16
activities in Illinois who will, upon receipt of the property
17
in Illinois, temporarily store the property in Illinois (i)
18
for the purpose of subsequently transporting it outside this
19
State for use or consumption thereafter solely outside this
20
State or (ii) for the purpose of being processed, fabricated,
21
or manufactured into, attached to, or incorporated into other
22
tangible personal property to be transported outside this
23
State and thereafter used or consumed solely outside this
24
State. The Director of Revenue shall, pursuant to rules
25
adopted in accordance with the Illinois Administrative
26
Procedure Act, issue a permit to any taxpayer in good standing

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with the Department who is eligible for the exemption under
2
this paragraph (26). The permit issued under this paragraph
3
(26) shall authorize the holder, to the extent and in the
4
manner specified in the rules adopted under this Act, to
5
purchase tangible personal property from a retailer exempt
6
from the taxes imposed by this Act. Taxpayers shall maintain
7
all necessary books and records to substantiate the use and
8
consumption of all such tangible personal property outside of
9
the State of Illinois.
10

(27) Beginning January 1, 2008, tangible personal property
11
used in the construction or maintenance of a community water
12
supply, as defined under Section 3.145 of the Environmental
13
Protection Act, that is operated by a not-for-profit
14
corporation that holds a valid water supply permit issued
15
under Title IV of the Environmental Protection Act. This
16
paragraph is exempt from the provisions of Section 3-55.
17

(28) Tangible personal property sold to a
18
public-facilities corporation, as described in Section
19
11-65-10 of the Illinois Municipal Code, for purposes of
20
constructing or furnishing a municipal convention hall, but
21
only if the legal title to the municipal convention hall is
22
transferred to the municipality without any further
23
consideration by or on behalf of the municipality at the time
24
of the completion of the municipal convention hall or upon the
25
retirement or redemption of any bonds or other debt
26
instruments issued by the public-facilities corporation in

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connection with the development of the municipal convention
2
hall. This exemption includes existing public-facilities
3
corporations as provided in Section 11-65-25 of the Illinois
4
Municipal Code. This paragraph is exempt from the provisions
5
of Section 3-55.
6

(29) Beginning January 1, 2010 and continuing through
7
December 31, 2029, materials, parts, equipment, components,
8
and furnishings incorporated into or upon an aircraft as part
9
of the modification, refurbishment, completion, replacement,
10
repair, or maintenance of the aircraft. This exemption
11
includes consumable supplies used in the modification,
12
refurbishment, completion, replacement, repair, and
13
maintenance of aircraft. However, until January 1, 2024, this
14
exemption excludes any materials, parts, equipment,
15
components, and consumable supplies used in the modification,
16
replacement, repair, and maintenance of aircraft engines or
17
power plants, whether such engines or power plants are
18
installed or uninstalled upon any such aircraft. "Consumable
19
supplies" include, but are not limited to, adhesive, tape,
20
sandpaper, general purpose lubricants, cleaning solution,
21
latex gloves, and protective films.
22

Beginning January 1, 2010 and continuing through December
23
31, 2023, this exemption applies only to the transfer of
24
qualifying tangible personal property incident to the
25
modification, refurbishment, completion, replacement, repair,
26
or maintenance of an aircraft by persons who (i) hold an Air

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Agency Certificate and are empowered to operate an approved
2
repair station by the Federal Aviation Administration, (ii)
3
have a Class IV Rating, and (iii) conduct operations in
4
accordance with Part 145 of the Federal Aviation Regulations.
5
The exemption does not include aircraft operated by a
6
commercial air carrier providing scheduled passenger air
7
service pursuant to authority issued under Part 121 or Part
8
129 of the Federal Aviation Regulations. From January 1, 2024
9
through December 31, 2029, this exemption applies only to the
10
transfer of qualifying tangible personal property incident to:
11
(A) the modification, refurbishment, completion, repair,
12
replacement, or maintenance of an aircraft by persons who (i)
13
hold an Air Agency Certificate and are empowered to operate an
14
approved repair station by the Federal Aviation
15
Administration, (ii) have a Class IV Rating, and (iii) conduct
16
operations in accordance with Part 145 of the Federal Aviation
17
Regulations; and (B) the modification, replacement, repair,
18
and maintenance of aircraft engines or power plants without
19
regard to whether or not those persons meet the qualifications
20
of item (A).
21

The changes made to this paragraph (29) by Public Act
22
98-534 are declarative of existing law. It is the intent of the
23
General Assembly that the exemption under this paragraph (29)
24
applies continuously from January 1, 2010 through December 31,
25
2024; however, no claim for credit or refund is allowed for
26
taxes paid as a result of the disallowance of this exemption on

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or after January 1, 2015 and prior to February 5, 2020 (the
2
effective date of Public Act 101-629).
3

(30) Beginning January 1, 2017 and through December 31,
4
2026, menstrual pads, tampons, and menstrual cups.
5

(31) Tangible personal property transferred to a purchaser
6
who is exempt from tax by operation of federal law. This
7
paragraph is exempt from the provisions of Section 3-55.
8

(32) Qualified tangible personal property used in the
9
construction or operation of a data center that has been
10
granted a certificate of exemption by the Department of
11
Commerce and Economic Opportunity, whether that tangible
12
personal property is purchased by the owner, operator, or
13
tenant of the data center or by a contractor or subcontractor
14
of the owner, operator, or tenant. Data centers that would
15
have qualified for a certificate of exemption prior to January
16
1, 2020 had Public Act 101-31 been in effect, may apply for and
17
obtain an exemption for subsequent purchases of computer
18
equipment or enabling software purchased or leased to upgrade,
19
supplement, or replace computer equipment or enabling software
20
purchased or leased in the original investment that would have
21
qualified.
22

The Department of Commerce and Economic Opportunity shall
23
grant a certificate of exemption under this item (32) to
24
qualified data centers as defined by Section 605-1025 of the
25
Department of Commerce and Economic Opportunity Law of the
26
Civil Administrative Code of Illinois.

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For the purposes of this item (32):
2

"Data center" means a building or a series of
3

buildings rehabilitated or constructed to house working
4

servers in one physical location or multiple sites within
5

the State of Illinois.
6

"Qualified tangible personal property" means:
7

electrical systems and equipment; climate control and
8

chilling equipment and systems; mechanical systems and
9

equipment; monitoring and secure systems; emergency
10

generators; hardware; computers; servers; data storage
11

devices; network connectivity equipment; racks; cabinets;
12

telecommunications cabling infrastructure; raised floor
13

systems; peripheral components or systems; software;
14

mechanical, electrical, or plumbing systems; battery
15

systems; cooling systems and towers; temperature control
16

systems; other cabling; and other data center
17

infrastructure equipment and systems necessary to operate
18

qualified tangible personal property, including fixtures;
19

and component parts of any of the foregoing, including
20

installation, maintenance, repair, refurbishment, and
21

replacement of qualified tangible personal property to
22

generate, transform, transmit, distribute, or manage
23

electricity necessary to operate qualified tangible
24

personal property; and all other tangible personal
25

property that is essential to the operations of a computer
26

data center. The term "qualified tangible personal

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property" also includes building materials physically
2

incorporated into the qualifying data center. To document
3

the exemption allowed under this Section, the retailer
4

must obtain from the purchaser a copy of the certificate
5

of eligibility issued by the Department of Commerce and
6

Economic Opportunity.
7

This item (32) is exempt from the provisions of Section
8
3-55.
9

(33) Beginning July 1, 2022, breast pumps, breast pump
10
collection and storage supplies, and breast pump kits. This
11
item (33) is exempt from the provisions of Section 3-55. As
12
used in this item (33):
13

"Breast pump" means an electrically controlled or
14

manually controlled pump device designed or marketed to be
15

used to express milk from a human breast during lactation,
16

including the pump device and any battery, AC adapter, or
17

other power supply unit that is used to power the pump
18

device and is packaged and sold with the pump device at the
19

time of sale.
20

"Breast pump collection and storage supplies" means
21

items of tangible personal property designed or marketed
22

to be used in conjunction with a breast pump to collect
23

milk expressed from a human breast and to store collected
24

milk until it is ready for consumption.
25

"Breast pump collection and storage supplies"
26

includes, but is not limited to: breast shields and breast

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shield connectors; breast pump tubes and tubing adapters;
2

breast pump valves and membranes; backflow protectors and
3

backflow protector adaptors; bottles and bottle caps
4

specific to the operation of the breast pump; and breast
5

milk storage bags.
6

"Breast pump collection and storage supplies" does not
7

include: (1) bottles and bottle caps not specific to the
8

operation of the breast pump; (2) breast pump travel bags
9

and other similar carrying accessories, including ice
10

packs, labels, and other similar products; (3) breast pump
11

cleaning supplies; (4) nursing bras, bra pads, breast
12

shells, and other similar products; and (5) creams,
13

ointments, and other similar products that relieve
14

breastfeeding-related symptoms or conditions of the
15

breasts or nipples, unless sold as part of a breast pump
16

kit that is pre-packaged by the breast pump manufacturer
17

or distributor.
18

"Breast pump kit" means a kit that: (1) contains no
19

more than a breast pump, breast pump collection and
20

storage supplies, a rechargeable battery for operating the
21

breast pump, a breastmilk cooler, bottle stands, ice
22

packs, and a breast pump carrying case; and (2) is
23

pre-packaged as a breast pump kit by the breast pump
24

manufacturer or distributor.
25

(34) Tangible personal property sold by or on behalf of
26
the State Treasurer pursuant to the Revised Uniform Unclaimed

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Property Act. This item (34) is exempt from the provisions of
2
Section 3-55.
3

(35) Beginning on January 1, 2024, tangible personal
4
property purchased by an active duty member of the armed
5
forces of the United States who presents valid military
6
identification and purchases the property using a form of
7
payment where the federal government is the payor. The member
8
of the armed forces must complete, at the point of sale, a form
9
prescribed by the Department of Revenue documenting that the
10
transaction is eligible for the exemption under this
11
paragraph. Retailers must keep the form as documentation of
12
the exemption in their records for a period of not less than 6
13
years. "Armed forces of the United States" means the United
14
States Army, Navy, Air Force, Space Force, Marine Corps, or
15
Coast Guard. This paragraph is exempt from the provisions of
16
Section 3-55.
17

(36) Beginning July 1, 2024, home-delivered meals provided
18
to Medicare or Medicaid recipients when payment is made by an
19
intermediary, such as a Medicare Administrative Contractor, a
20
Managed Care Organization, or a Medicare Advantage
21
Organization, pursuant to a government contract. This
22
paragraph
(36)

(35)
is exempt from the provisions of Section
23
3-55.
24

(37)

(36)
Beginning on January 1, 2026, as further defined
25
in Section 3-10, food prepared for immediate consumption and
26
transferred incident to a sale of service subject to this Act

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or the Service Use Tax Act by an entity licensed under the
2
Hospital Licensing Act, the Nursing Home Care Act, the
3
Assisted Living and Shared Housing Act, the ID/DD Community
4
Care Act, the MC/DD Act, the Specialized Mental Health
5
Rehabilitation Act of 2013, or the Child Care Act of 1969 or by
6
an entity that holds a permit issued pursuant to the Life Care
7
Facilities Act. This item
(37)

(36)
is exempt from the
8
provisions of Section 3-55.
9

(38)

(37)
Beginning on January 1, 2026, as further defined
10
in Section 3-10, food for human consumption that is to be
11
consumed off the premises where it is sold (other than
12
alcoholic beverages, food consisting of or infused with adult
13
use cannabis, soft drinks, candy, and food that has been
14
prepared for immediate consumption). This item
(38)

(37)
is
15
exempt from the provisions of Section 3-55.
16

(39)

(36)
The lease of the following tangible personal
17
property:
18

(1) computer software transferred subject to a license
19

that meets the following requirements:
20

(A) it is evidenced by a written agreement signed
21

by the licensor and the customer;
22

(i) an electronic agreement in which the
23

customer accepts the license by means of an
24

electronic signature that is verifiable and can be
25

authenticated and is attached to or made part of
26

the license will comply with this requirement;

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(ii) a license agreement in which the customer
2

electronically accepts the terms by clicking "I
3

agree" does not comply with this requirement;
4

(B) it restricts the customer's duplication and
5

use of the software;
6

(C) it prohibits the customer from licensing,
7

sublicensing, or transferring the software to a third
8

party (except to a related party) without the
9

permission and continued control of the licensor;
10

(D) the licensor has a policy of providing another
11

copy at minimal or no charge if the customer loses or
12

damages the software, or of permitting the licensee to
13

make and keep an archival copy, and such policy is
14

either stated in the license agreement, supported by
15

the licensor's books and records, or supported by a
16

notarized statement made under penalties of perjury by
17

the licensor; and
18

(E) the customer must destroy or return all copies
19

of the software to the licensor at the end of the
20

license period; this provision is deemed to be met, in
21

the case of a perpetual license, without being set
22

forth in the license agreement; and
23

(2) property that is subject to a tax on lease
24

receipts imposed by a home rule unit of local government
25

if the ordinance imposing that tax was adopted prior to
26

January 1, 2023.

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(40) A motor vehicle of the first division, as defined in
2
Section 1-146 of the Illinois Vehicle Code, that is registered
3
in the State to an Illinois resident who acquired the vehicle
4
while the Illinois resident was stationed outside of this
5
State as an active duty member of the military. This item (40)
6
is exempt from the provisions of Section 3-55.

7

As used in this item (40):

8

"Active duty member of the military" means a service
9
member who undertakes any full-time military training or
10
full-time military duty, no matter how described under federal
11
or State law, for which a service member is ordered to report
12
by the President, by the Governor of a state, commonwealth, or
13
territory of the United States, by an act of Congress, or by
14
any other appropriate military authority.

15

"Illinois resident" means an individual who meets the
16
definition of "resident" under subparagraph (A) of paragraph
17
(20) of subsection (a) of Section 1501 of the Illinois Income
18
Tax Act.

19

"Service member" means a person who is a member of any
20
component of the United States Armed Forces or the National
21
Guard of any state, the District of Columbia, a commonwealth,
22
or a territory of the United States.

23
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
24
Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
25
75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
26
Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,

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eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
2
103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
3
7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995,
4
eff. 8-9-24; revised 11-26-24.)

5

Section 20.
The Retailers' Occupation Tax Act is amended
6
by changing Section 2-5 as follows:

7

(35 ILCS 120/2-5)
8

Sec. 2-5.
Exemptions.
Gross receipts from proceeds from
9
the sale, which, on and after January 1, 2025, includes the
10
lease, of the following tangible personal property are exempt
11
from the tax imposed by this Act:
12

(1) Farm chemicals.
13

(2) Farm machinery and equipment, both new and used,
14

including that manufactured on special order, certified by
15

the purchaser to be used primarily for production
16

agriculture or State or federal agricultural programs,
17

including individual replacement parts for the machinery
18

and equipment, including machinery and equipment purchased
19

for lease, and including implements of husbandry defined
20

in Section 1-130 of the Illinois Vehicle Code, farm
21

machinery and agricultural chemical and fertilizer
22

spreaders, and nurse wagons required to be registered
23

under Section 3-809 of the Illinois Vehicle Code, but
24

excluding other motor vehicles required to be registered

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under the Illinois Vehicle Code. Horticultural polyhouses
2

or hoop houses used for propagating, growing, or
3

overwintering plants shall be considered farm machinery
4

and equipment under this item (2). Agricultural chemical
5

tender tanks and dry boxes shall include units sold
6

separately from a motor vehicle required to be licensed
7

and units sold mounted on a motor vehicle required to be
8

licensed, if the selling price of the tender is separately
9

stated.
10

Farm machinery and equipment shall include precision
11

farming equipment that is installed or purchased to be
12

installed on farm machinery and equipment including, but
13

not limited to, tractors, harvesters, sprayers, planters,
14

seeders, or spreaders. Precision farming equipment
15

includes, but is not limited to, soil testing sensors,
16

computers, monitors, software, global positioning and
17

mapping systems, and other such equipment.
18

Farm machinery and equipment also includes computers,
19

sensors, software, and related equipment used primarily in
20

the computer-assisted operation of production agriculture
21

facilities, equipment, and activities such as, but not
22

limited to, the collection, monitoring, and correlation of
23

animal and crop data for the purpose of formulating animal
24

diets and agricultural chemicals.
25

Beginning on January 1, 2024, farm machinery and
26

equipment also includes electrical power generation

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equipment used primarily for production agriculture.
2

This item (2) is exempt from the provisions of Section
3

2-70.
4

(3) Until July 1, 2003, distillation machinery and
5

equipment, sold as a unit or kit, assembled or installed
6

by the retailer, certified by the user to be used only for
7

the production of ethyl alcohol that will be used for
8

consumption as motor fuel or as a component of motor fuel
9

for the personal use of the user, and not subject to sale
10

or resale.
11

(4) Until July 1, 2003 and beginning again September
12

1, 2004 through August 30, 2014, graphic arts machinery
13

and equipment, including repair and replacement parts,
14

both new and used, and including that manufactured on
15

special order or purchased for lease, certified by the
16

purchaser to be used primarily for graphic arts
17

production. Equipment includes chemicals or chemicals
18

acting as catalysts but only if the chemicals or chemicals
19

acting as catalysts effect a direct and immediate change
20

upon a graphic arts product. Beginning on July 1, 2017,
21

graphic arts machinery and equipment is included in the
22

manufacturing and assembling machinery and equipment
23

exemption under paragraph (14).
24

(5) A motor vehicle that is used for automobile
25

renting, as defined in the Automobile Renting Occupation
26

and Use Tax Act. This paragraph is exempt from the

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provisions of Section 2-70.
2

(6) Personal property sold by a teacher-sponsored
3

student organization affiliated with an elementary or
4

secondary school located in Illinois.
5

(7) Until July 1, 2003, proceeds of that portion of
6

the selling price of a passenger car the sale of which is
7

subject to the Replacement Vehicle Tax.
8

(8) Personal property sold to an Illinois county fair
9

association for use in conducting, operating, or promoting
10

the county fair.
11

(9) Personal property sold to a not-for-profit arts or
12

cultural organization that establishes, by proof required
13

by the Department by rule, that it has received an
14

exemption under Section 501(c)(3) of the Internal Revenue
15

Code and that is organized and operated primarily for the
16

presentation or support of arts or cultural programming,
17

activities, or services. These organizations include, but
18

are not limited to, music and dramatic arts organizations
19

such as symphony orchestras and theatrical groups, arts
20

and cultural service organizations, local arts councils,
21

visual arts organizations, and media arts organizations.
22

On and after July 1, 2001 (the effective date of Public Act
23

92-35), however, an entity otherwise eligible for this
24

exemption shall not make tax-free purchases unless it has
25

an active identification number issued by the Department.
26

(10) Personal property sold by a corporation, society,

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association, foundation, institution, or organization,
2

other than a limited liability company, that is organized
3

and operated as a not-for-profit service enterprise for
4

the benefit of persons 65 years of age or older if the
5

personal property was not purchased by the enterprise for
6

the purpose of resale by the enterprise.
7

(11) Except as otherwise provided in this Section,
8

personal property sold to a governmental body, to a
9

corporation, society, association, foundation, or
10

institution organized and operated exclusively for
11

charitable, religious, or educational purposes, or to a
12

not-for-profit corporation, society, association,
13

foundation, institution, or organization that has no
14

compensated officers or employees and that is organized
15

and operated primarily for the recreation of persons 55
16

years of age or older. A limited liability company may
17

qualify for the exemption under this paragraph only if the
18

limited liability company is organized and operated
19

exclusively for educational purposes. On and after July 1,
20

1987, however, no entity otherwise eligible for this
21

exemption shall make tax-free purchases unless it has an
22

active identification number issued by the Department.
23

(12) (Blank).
24

(12-5) On and after July 1, 2003 and through June 30,
25

2004, motor vehicles of the second division with a gross
26

vehicle weight in excess of 8,000 pounds that are subject

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to the commercial distribution fee imposed under Section
2

3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
3

2004 and through June 30, 2005, the use in this State of
4

motor vehicles of the second division: (i) with a gross
5

vehicle weight rating in excess of 8,000 pounds; (ii) that
6

are subject to the commercial distribution fee imposed
7

under Section 3-815.1 of the Illinois Vehicle Code; and
8

(iii) that are primarily used for commercial purposes.
9

Through June 30, 2005, this exemption applies to repair
10

and replacement parts added after the initial purchase of
11

such a motor vehicle if that motor vehicle is used in a
12

manner that would qualify for the rolling stock exemption
13

otherwise provided for in this Act. For purposes of this
14

paragraph, "used for commercial purposes" means the
15

transportation of persons or property in furtherance of
16

any commercial or industrial enterprise whether for-hire
17

or not.
18

(13) Proceeds from sales to owners or lessors,
19

lessees, or shippers of tangible personal property that is
20

utilized by interstate carriers for hire for use as
21

rolling stock moving in interstate commerce and equipment
22

operated by a telecommunications provider, licensed as a
23

common carrier by the Federal Communications Commission,
24

which is permanently installed in or affixed to aircraft
25

moving in interstate commerce.
26

(14) Machinery and equipment that will be used by the

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purchaser, or a lessee of the purchaser, primarily in the
2

process of manufacturing or assembling tangible personal
3

property for wholesale or retail sale or lease, whether
4

the sale or lease is made directly by the manufacturer or
5

by some other person, whether the materials used in the
6

process are owned by the manufacturer or some other
7

person, or whether the sale or lease is made apart from or
8

as an incident to the seller's engaging in the service
9

occupation of producing machines, tools, dies, jigs,
10

patterns, gauges, or other similar items of no commercial
11

value on special order for a particular purchaser. The
12

exemption provided by this paragraph (14) does not include
13

machinery and equipment used in (i) the generation of
14

electricity for wholesale or retail sale; (ii) the
15

generation or treatment of natural or artificial gas for
16

wholesale or retail sale that is delivered to customers
17

through pipes, pipelines, or mains; or (iii) the treatment
18

of water for wholesale or retail sale that is delivered to
19

customers through pipes, pipelines, or mains. The
20

provisions of Public Act 98-583 are declaratory of
21

existing law as to the meaning and scope of this
22

exemption. Beginning on July 1, 2017, the exemption
23

provided by this paragraph (14) includes, but is not
24

limited to, graphic arts machinery and equipment, as
25

defined in paragraph (4) of this Section.
26

(15) Proceeds of mandatory service charges separately

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stated on customers' bills for purchase and consumption of
2

food and beverages, to the extent that the proceeds of the
3

service charge are in fact turned over as tips or as a
4

substitute for tips to the employees who participate
5

directly in preparing, serving, hosting or cleaning up the
6

food or beverage function with respect to which the
7

service charge is imposed.
8

(16) Tangible personal property sold to a purchaser if
9

the purchaser is exempt from use tax by operation of
10

federal law. This paragraph is exempt from the provisions
11

of Section 2-70.
12

(17) Tangible personal property sold to a common
13

carrier by rail or motor that receives the physical
14

possession of the property in Illinois and that transports
15

the property, or shares with another common carrier in the
16

transportation of the property, out of Illinois on a
17

standard uniform bill of lading showing the seller of the
18

property as the shipper or consignor of the property to a
19

destination outside Illinois, for use outside Illinois.
20

(18) Legal tender, currency, medallions, or gold or
21

silver coinage issued by the State of Illinois, the
22

government of the United States of America, or the
23

government of any foreign country, and bullion.
24

(19) Until July 1, 2003, oil field exploration,
25

drilling, and production equipment, including (i) rigs and
26

parts of rigs, rotary rigs, cable tool rigs, and workover

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rigs, (ii) pipe and tubular goods, including casing and
2

drill strings, (iii) pumps and pump-jack units, (iv)
3

storage tanks and flow lines, (v) any individual
4

replacement part for oil field exploration, drilling, and
5

production equipment, and (vi) machinery and equipment
6

purchased for lease; but excluding motor vehicles required
7

to be registered under the Illinois Vehicle Code.
8

(20) Photoprocessing machinery and equipment,
9

including repair and replacement parts, both new and used,
10

including that manufactured on special order, certified by
11

the purchaser to be used primarily for photoprocessing,
12

and including photoprocessing machinery and equipment
13

purchased for lease.
14

(21) Until July 1, 2028, coal and aggregate
15

exploration, mining, off-highway hauling, processing,
16

maintenance, and reclamation equipment, including
17

replacement parts and equipment, and including equipment
18

purchased for lease, but excluding motor vehicles required
19

to be registered under the Illinois Vehicle Code. The
20

changes made to this Section by Public Act 97-767 apply on
21

and after July 1, 2003, but no claim for credit or refund
22

is allowed on or after August 16, 2013 (the effective date
23

of Public Act 98-456) for such taxes paid during the
24

period beginning July 1, 2003 and ending on August 16,
25

2013 (the effective date of Public Act 98-456).
26

(22) Until June 30, 2013, fuel and petroleum products

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sold to or used by an air carrier, certified by the carrier
2

to be used for consumption, shipment, or storage in the
3

conduct of its business as an air common carrier, for a
4

flight destined for or returning from a location or
5

locations outside the United States without regard to
6

previous or subsequent domestic stopovers.
7

Beginning July 1, 2013, fuel and petroleum products
8

sold to or used by an air carrier, certified by the carrier
9

to be used for consumption, shipment, or storage in the
10

conduct of its business as an air common carrier, for a
11

flight that (i) is engaged in foreign trade or is engaged
12

in trade between the United States and any of its
13

possessions and (ii) transports at least one individual or
14

package for hire from the city of origination to the city
15

of final destination on the same aircraft, without regard
16

to a change in the flight number of that aircraft.
17

(23) A transaction in which the purchase order is
18

received by a florist who is located outside Illinois, but
19

who has a florist located in Illinois deliver the property
20

to the purchaser or the purchaser's donee in Illinois.
21

(24) Fuel consumed or used in the operation of ships,
22

barges, or vessels that are used primarily in or for the
23

transportation of property or the conveyance of persons
24

for hire on rivers bordering on this State if the fuel is
25

delivered by the seller to the purchaser's barge, ship, or
26

vessel while it is afloat upon that bordering river.

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(25) Except as provided in item (25-5) of this
2

Section, a motor vehicle sold in this State to a
3

nonresident even though the motor vehicle is delivered to
4

the nonresident in this State, if the motor vehicle is not
5

to be titled in this State, and if a drive-away permit is
6

issued to the motor vehicle as provided in Section 3-603
7

of the Illinois Vehicle Code or if the nonresident
8

purchaser has vehicle registration plates to transfer to
9

the motor vehicle upon returning to his or her home state.
10

The issuance of the drive-away permit or having the
11

out-of-state registration plates to be transferred is
12

prima facie evidence that the motor vehicle will not be
13

titled in this State.
14

(25-5) The exemption under item (25) does not apply if
15

the state in which the motor vehicle will be titled does
16

not allow a reciprocal exemption for a motor vehicle sold
17

and delivered in that state to an Illinois resident but
18

titled in Illinois. The tax collected under this Act on
19

the sale of a motor vehicle in this State to a resident of
20

another state that does not allow a reciprocal exemption
21

shall be imposed at a rate equal to the state's rate of tax
22

on taxable property in the state in which the purchaser is
23

a resident, except that the tax shall not exceed the tax
24

that would otherwise be imposed under this Act. At the
25

time of the sale, the purchaser shall execute a statement,
26

signed under penalty of perjury, of his or her intent to

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title the vehicle in the state in which the purchaser is a
2

resident within 30 days after the sale and of the fact of
3

the payment to the State of Illinois of tax in an amount
4

equivalent to the state's rate of tax on taxable property
5

in his or her state of residence and shall submit the
6

statement to the appropriate tax collection agency in his
7

or her state of residence. In addition, the retailer must
8

retain a signed copy of the statement in his or her
9

records. Nothing in this item shall be construed to
10

require the removal of the vehicle from this state
11

following the filing of an intent to title the vehicle in
12

the purchaser's state of residence if the purchaser titles
13

the vehicle in his or her state of residence within 30 days
14

after the date of sale. The tax collected under this Act in
15

accordance with this item (25-5) shall be proportionately
16

distributed as if the tax were collected at the 6.25%
17

general rate imposed under this Act.
18

(25-7) Beginning on July 1, 2007, no tax is imposed
19

under this Act on the sale of an aircraft, as defined in
20

Section 3 of the Illinois Aeronautics Act, if all of the
21

following conditions are met:
22

(1) the aircraft leaves this State within 15 days
23

after the later of either the issuance of the final
24

billing for the sale of the aircraft, or the
25

authorized approval for return to service, completion
26

of the maintenance record entry, and completion of the

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test flight and ground test for inspection, as
2

required by 14 CFR 91.407;
3

(2) the aircraft is not based or registered in
4

this State after the sale of the aircraft; and
5

(3) the seller retains in his or her books and
6

records and provides to the Department a signed and
7

dated certification from the purchaser, on a form
8

prescribed by the Department, certifying that the
9

requirements of this item (25-7) are met. The
10

certificate must also include the name and address of
11

the purchaser, the address of the location where the
12

aircraft is to be titled or registered, the address of
13

the primary physical location of the aircraft, and
14

other information that the Department may reasonably
15

require.
16

For purposes of this item (25-7):
17

"Based in this State" means hangared, stored, or
18

otherwise used, excluding post-sale customizations as
19

defined in this Section, for 10 or more days in each
20

12-month period immediately following the date of the sale
21

of the aircraft.
22

"Registered in this State" means an aircraft
23

registered with the Department of Transportation,
24

Aeronautics Division, or titled or registered with the
25

Federal Aviation Administration to an address located in
26

this State.

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This paragraph (25-7) is exempt from the provisions of
2

Section 2-70.
3

(26) Semen used for artificial insemination of
4

livestock for direct agricultural production.
5

(27) Horses, or interests in horses, registered with
6

and meeting the requirements of any of the Arabian Horse
7

Club Registry of America, Appaloosa Horse Club, American
8

Quarter Horse Association, United States Trotting
9

Association, or Jockey Club, as appropriate, used for
10

purposes of breeding or racing for prizes. This item (27)
11

is exempt from the provisions of Section 2-70, and the
12

exemption provided for under this item (27) applies for
13

all periods beginning May 30, 1995, but no claim for
14

credit or refund is allowed on or after January 1, 2008
15

(the effective date of Public Act 95-88) for such taxes
16

paid during the period beginning May 30, 2000 and ending
17

on January 1, 2008 (the effective date of Public Act
18

95-88).
19

(28) Computers and communications equipment utilized
20

for any hospital purpose and equipment used in the
21

diagnosis, analysis, or treatment of hospital patients
22

sold to a lessor who leases the equipment, under a lease of
23

one year or longer executed or in effect at the time of the
24

purchase, to a hospital that has been issued an active tax
25

exemption identification number by the Department under
26

Section 1g of this Act.

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(29) Personal property sold to a lessor who leases the
2

property, under a lease of one year or longer executed or
3

in effect at the time of the purchase, to a governmental
4

body that has been issued an active tax exemption
5

identification number by the Department under Section 1g
6

of this Act.
7

(30) Beginning with taxable years ending on or after
8

December 31, 1995 and ending with taxable years ending on
9

or before December 31, 2004, personal property that is
10

donated for disaster relief to be used in a State or
11

federally declared disaster area in Illinois or bordering
12

Illinois by a manufacturer or retailer that is registered
13

in this State to a corporation, society, association,
14

foundation, or institution that has been issued a sales
15

tax exemption identification number by the Department that
16

assists victims of the disaster who reside within the
17

declared disaster area.
18

(31) Beginning with taxable years ending on or after
19

December 31, 1995 and ending with taxable years ending on
20

or before December 31, 2004, personal property that is
21

used in the performance of infrastructure repairs in this
22

State, including, but not limited to, municipal roads and
23

streets, access roads, bridges, sidewalks, waste disposal
24

systems, water and sewer line extensions, water
25

distribution and purification facilities, storm water
26

drainage and retention facilities, and sewage treatment

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facilities, resulting from a State or federally declared
2

disaster in Illinois or bordering Illinois when such
3

repairs are initiated on facilities located in the
4

declared disaster area within 6 months after the disaster.
5

(32) Beginning July 1, 1999, game or game birds sold
6

at a "game breeding and hunting preserve area" as that
7

term is used in the Wildlife Code. This paragraph is
8

exempt from the provisions of Section 2-70.
9

(33) A motor vehicle, as that term is defined in
10

Section 1-146 of the Illinois Vehicle Code, that is
11

donated to a corporation, limited liability company,
12

society, association, foundation, or institution that is
13

determined by the Department to be organized and operated
14

exclusively for educational purposes. For purposes of this
15

exemption, "a corporation, limited liability company,
16

society, association, foundation, or institution organized
17

and operated exclusively for educational purposes" means
18

all tax-supported public schools, private schools that
19

offer systematic instruction in useful branches of
20

learning by methods common to public schools and that
21

compare favorably in their scope and intensity with the
22

course of study presented in tax-supported schools, and
23

vocational or technical schools or institutes organized
24

and operated exclusively to provide a course of study of
25

not less than 6 weeks duration and designed to prepare
26

individuals to follow a trade or to pursue a manual,

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technical, mechanical, industrial, business, or commercial
2

occupation.
3

(34) Beginning January 1, 2000, personal property,
4

including food, purchased through fundraising events for
5

the benefit of a public or private elementary or secondary
6

school, a group of those schools, or one or more school
7

districts if the events are sponsored by an entity
8

recognized by the school district that consists primarily
9

of volunteers and includes parents and teachers of the
10

school children. This paragraph does not apply to
11

fundraising events (i) for the benefit of private home
12

instruction or (ii) for which the fundraising entity
13

purchases the personal property sold at the events from
14

another individual or entity that sold the property for
15

the purpose of resale by the fundraising entity and that
16

profits from the sale to the fundraising entity. This
17

paragraph is exempt from the provisions of Section 2-70.
18

(35) Beginning January 1, 2000 and through December
19

31, 2001, new or used automatic vending machines that
20

prepare and serve hot food and beverages, including
21

coffee, soup, and other items, and replacement parts for
22

these machines. Beginning January 1, 2002 and through June
23

30, 2003, machines and parts for machines used in
24

commercial, coin-operated amusement and vending business
25

if a use or occupation tax is paid on the gross receipts
26

derived from the use of the commercial, coin-operated

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amusement and vending machines. This paragraph is exempt
2

from the provisions of Section 2-70.
3

(35-5) Beginning August 23, 2001 and through June 30,
4

2016, food for human consumption that is to be consumed
5

off the premises where it is sold (other than alcoholic
6

beverages, soft drinks, and food that has been prepared
7

for immediate consumption) and prescription and
8

nonprescription medicines, drugs, medical appliances, and
9

insulin, urine testing materials, syringes, and needles
10

used by diabetics, for human use, when purchased for use
11

by a person receiving medical assistance under Article V
12

of the Illinois Public Aid Code who resides in a licensed
13

long-term care facility, as defined in the Nursing Home
14

Care Act, or a licensed facility as defined in the ID/DD
15

Community Care Act, the MC/DD Act, or the Specialized
16

Mental Health Rehabilitation Act of 2013.
17

(36) Beginning August 2, 2001, computers and
18

communications equipment utilized for any hospital purpose
19

and equipment used in the diagnosis, analysis, or
20

treatment of hospital patients sold to a lessor who leases
21

the equipment, under a lease of one year or longer
22

executed or in effect at the time of the purchase, to a
23

hospital that has been issued an active tax exemption
24

identification number by the Department under Section 1g
25

of this Act. This paragraph is exempt from the provisions
26

of Section 2-70.

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(37) Beginning August 2, 2001, personal property sold
2

to a lessor who leases the property, under a lease of one
3

year or longer executed or in effect at the time of the
4

purchase, to a governmental body that has been issued an
5

active tax exemption identification number by the
6

Department under Section 1g of this Act. This paragraph is
7

exempt from the provisions of Section 2-70.
8

(38) Beginning on January 1, 2002 and through June 30,
9

2016, tangible personal property purchased from an
10

Illinois retailer by a taxpayer engaged in centralized
11

purchasing activities in Illinois who will, upon receipt
12

of the property in Illinois, temporarily store the
13

property in Illinois (i) for the purpose of subsequently
14

transporting it outside this State for use or consumption
15

thereafter solely outside this State or (ii) for the
16

purpose of being processed, fabricated, or manufactured
17

into, attached to, or incorporated into other tangible
18

personal property to be transported outside this State and
19

thereafter used or consumed solely outside this State. The
20

Director of Revenue shall, pursuant to rules adopted in
21

accordance with the Illinois Administrative Procedure Act,
22

issue a permit to any taxpayer in good standing with the
23

Department who is eligible for the exemption under this
24

paragraph (38). The permit issued under this paragraph
25

(38) shall authorize the holder, to the extent and in the
26

manner specified in the rules adopted under this Act, to

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purchase tangible personal property from a retailer exempt
2

from the taxes imposed by this Act. Taxpayers shall
3

maintain all necessary books and records to substantiate
4

the use and consumption of all such tangible personal
5

property outside of the State of Illinois.
6

(39) Beginning January 1, 2008, tangible personal
7

property used in the construction or maintenance of a
8

community water supply, as defined under Section 3.145 of
9

the Environmental Protection Act, that is operated by a
10

not-for-profit corporation that holds a valid water supply
11

permit issued under Title IV of the Environmental
12

Protection Act. This paragraph is exempt from the
13

provisions of Section 2-70.
14

(40) Beginning January 1, 2010 and continuing through
15

December 31, 2029, materials, parts, equipment,
16

components, and furnishings incorporated into or upon an
17

aircraft as part of the modification, refurbishment,
18

completion, replacement, repair, or maintenance of the
19

aircraft. This exemption includes consumable supplies used
20

in the modification, refurbishment, completion,
21

replacement, repair, and maintenance of aircraft. However,
22

until January 1, 2024, this exemption excludes any
23

materials, parts, equipment, components, and consumable
24

supplies used in the modification, replacement, repair,
25

and maintenance of aircraft engines or power plants,
26

whether such engines or power plants are installed or

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uninstalled upon any such aircraft. "Consumable supplies"
2

include, but are not limited to, adhesive, tape,
3

sandpaper, general purpose lubricants, cleaning solution,
4

latex gloves, and protective films.
5

Beginning January 1, 2010 and continuing through
6

December 31, 2023, this exemption applies only to the sale
7

of qualifying tangible personal property to persons who
8

modify, refurbish, complete, replace, or maintain an
9

aircraft and who (i) hold an Air Agency Certificate and
10

are empowered to operate an approved repair station by the
11

Federal Aviation Administration, (ii) have a Class IV
12

Rating, and (iii) conduct operations in accordance with
13

Part 145 of the Federal Aviation Regulations. The
14

exemption does not include aircraft operated by a
15

commercial air carrier providing scheduled passenger air
16

service pursuant to authority issued under Part 121 or
17

Part 129 of the Federal Aviation Regulations. From January
18

1, 2024 through December 31, 2029, this exemption applies
19

only to the sale of qualifying tangible personal property
20

to: (A) persons who modify, refurbish, complete, repair,
21

replace, or maintain aircraft and who (i) hold an Air
22

Agency Certificate and are empowered to operate an
23

approved repair station by the Federal Aviation
24

Administration, (ii) have a Class IV Rating, and (iii)
25

conduct operations in accordance with Part 145 of the
26

Federal Aviation Regulations; and (B) persons who engage

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in the modification, replacement, repair, and maintenance
2

of aircraft engines or power plants without regard to
3

whether or not those persons meet the qualifications of
4

item (A).
5

The changes made to this paragraph (40) by Public Act
6

98-534 are declarative of existing law. It is the intent
7

of the General Assembly that the exemption under this
8

paragraph (40) applies continuously from January 1, 2010
9

through December 31, 2024; however, no claim for credit or
10

refund is allowed for taxes paid as a result of the
11

disallowance of this exemption on or after January 1, 2015
12

and prior to February 5, 2020 (the effective date of
13

Public Act 101-629).
14

(41) Tangible personal property sold to a
15

public-facilities corporation, as described in Section
16

11-65-10 of the Illinois Municipal Code, for purposes of
17

constructing or furnishing a municipal convention hall,
18

but only if the legal title to the municipal convention
19

hall is transferred to the municipality without any
20

further consideration by or on behalf of the municipality
21

at the time of the completion of the municipal convention
22

hall or upon the retirement or redemption of any bonds or
23

other debt instruments issued by the public-facilities
24

corporation in connection with the development of the
25

municipal convention hall. This exemption includes
26

existing public-facilities corporations as provided in

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Section 11-65-25 of the Illinois Municipal Code. This
2

paragraph is exempt from the provisions of Section 2-70.
3

(42) Beginning January 1, 2017 and through December
4

31, 2026, menstrual pads, tampons, and menstrual cups.
5

(43) Merchandise that is subject to the Rental
6

Purchase Agreement Occupation and Use Tax. The purchaser
7

must certify that the item is purchased to be rented
8

subject to a rental-purchase agreement, as defined in the
9

Rental-Purchase Agreement Act, and provide proof of
10

registration under the Rental Purchase Agreement
11

Occupation and Use Tax Act. This paragraph is exempt from
12

the provisions of Section 2-70.
13

(44) Qualified tangible personal property used in the
14

construction or operation of a data center that has been
15

granted a certificate of exemption by the Department of
16

Commerce and Economic Opportunity, whether that tangible
17

personal property is purchased by the owner, operator, or
18

tenant of the data center or by a contractor or
19

subcontractor of the owner, operator, or tenant. Data
20

centers that would have qualified for a certificate of
21

exemption prior to January 1, 2020 had Public Act 101-31
22

been in effect, may apply for and obtain an exemption for
23

subsequent purchases of computer equipment or enabling
24

software purchased or leased to upgrade, supplement, or
25

replace computer equipment or enabling software purchased
26

or leased in the original investment that would have

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qualified.
2

The Department of Commerce and Economic Opportunity
3

shall grant a certificate of exemption under this item
4

(44) to qualified data centers as defined by Section
5

605-1025 of the Department of Commerce and Economic
6

Opportunity Law of the Civil Administrative Code of
7

Illinois.
8

For the purposes of this item (44):
9

"Data center" means a building or a series of
10

buildings rehabilitated or constructed to house
11

working servers in one physical location or multiple
12

sites within the State of Illinois.
13

"Qualified tangible personal property" means:
14

electrical systems and equipment; climate control and
15

chilling equipment and systems; mechanical systems and
16

equipment; monitoring and secure systems; emergency
17

generators; hardware; computers; servers; data storage
18

devices; network connectivity equipment; racks;
19

cabinets; telecommunications cabling infrastructure;
20

raised floor systems; peripheral components or
21

systems; software; mechanical, electrical, or plumbing
22

systems; battery systems; cooling systems and towers;
23

temperature control systems; other cabling; and other
24

data center infrastructure equipment and systems
25

necessary to operate qualified tangible personal
26

property, including fixtures; and component parts of

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any of the foregoing, including installation,
2

maintenance, repair, refurbishment, and replacement of
3

qualified tangible personal property to generate,
4

transform, transmit, distribute, or manage electricity
5

necessary to operate qualified tangible personal
6

property; and all other tangible personal property
7

that is essential to the operations of a computer data
8

center. The term "qualified tangible personal
9

property" also includes building materials physically
10

incorporated into the qualifying data center. To
11

document the exemption allowed under this Section, the
12

retailer must obtain from the purchaser a copy of the
13

certificate of eligibility issued by the Department of
14

Commerce and Economic Opportunity.
15

This item (44) is exempt from the provisions of
16

Section 2-70.
17

(45) Beginning January 1, 2020 and through December
18

31, 2020, sales of tangible personal property made by a
19

marketplace seller over a marketplace for which tax is due
20

under this Act but for which use tax has been collected and
21

remitted to the Department by a marketplace facilitator
22

under Section 2d of the Use Tax Act are exempt from tax
23

under this Act. A marketplace seller claiming this
24

exemption shall maintain books and records demonstrating
25

that the use tax on such sales has been collected and
26

remitted by a marketplace facilitator. Marketplace sellers

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that have properly remitted tax under this Act on such
2

sales may file a claim for credit as provided in Section 6
3

of this Act. No claim is allowed, however, for such taxes
4

for which a credit or refund has been issued to the
5

marketplace facilitator under the Use Tax Act, or for
6

which the marketplace facilitator has filed a claim for
7

credit or refund under the Use Tax Act.
8

(46) Beginning July 1, 2022, breast pumps, breast pump
9

collection and storage supplies, and breast pump kits.
10

This item (46) is exempt from the provisions of Section
11

2-70. As used in this item (46):
12

"Breast pump" means an electrically controlled or
13

manually controlled pump device designed or marketed to be
14

used to express milk from a human breast during lactation,
15

including the pump device and any battery, AC adapter, or
16

other power supply unit that is used to power the pump
17

device and is packaged and sold with the pump device at the
18

time of sale.
19

"Breast pump collection and storage supplies" means
20

items of tangible personal property designed or marketed
21

to be used in conjunction with a breast pump to collect
22

milk expressed from a human breast and to store collected
23

milk until it is ready for consumption.
24

"Breast pump collection and storage supplies"
25

includes, but is not limited to: breast shields and breast
26

shield connectors; breast pump tubes and tubing adapters;

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breast pump valves and membranes; backflow protectors and
2

backflow protector adaptors; bottles and bottle caps
3

specific to the operation of the breast pump; and breast
4

milk storage bags.
5

"Breast pump collection and storage supplies" does not
6

include: (1) bottles and bottle caps not specific to the
7

operation of the breast pump; (2) breast pump travel bags
8

and other similar carrying accessories, including ice
9

packs, labels, and other similar products; (3) breast pump
10

cleaning supplies; (4) nursing bras, bra pads, breast
11

shells, and other similar products; and (5) creams,
12

ointments, and other similar products that relieve
13

breastfeeding-related symptoms or conditions of the
14

breasts or nipples, unless sold as part of a breast pump
15

kit that is pre-packaged by the breast pump manufacturer
16

or distributor.
17

"Breast pump kit" means a kit that: (1) contains no
18

more than a breast pump, breast pump collection and
19

storage supplies, a rechargeable battery for operating the
20

breast pump, a breastmilk cooler, bottle stands, ice
21

packs, and a breast pump carrying case; and (2) is
22

pre-packaged as a breast pump kit by the breast pump
23

manufacturer or distributor.
24

(47) Tangible personal property sold by or on behalf
25

of the State Treasurer pursuant to the Revised Uniform
26

Unclaimed Property Act. This item (47) is exempt from the

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provisions of Section 2-70.
2

(48) Beginning on January 1, 2024, tangible personal
3

property purchased by an active duty member of the armed
4

forces of the United States who presents valid military
5

identification and purchases the property using a form of
6

payment where the federal government is the payor. The
7

member of the armed forces must complete, at the point of
8

sale, a form prescribed by the Department of Revenue
9

documenting that the transaction is eligible for the
10

exemption under this paragraph. Retailers must keep the
11

form as documentation of the exemption in their records
12

for a period of not less than 6 years. "Armed forces of the
13

United States" means the United States Army, Navy, Air
14

Force, Space Force, Marine Corps, or Coast Guard. This
15

paragraph is exempt from the provisions of Section 2-70.
16

(49) Beginning July 1, 2024, home-delivered meals
17

provided to Medicare or Medicaid recipients when payment
18

is made by an intermediary, such as a Medicare
19

Administrative Contractor, a Managed Care Organization, or
20

a Medicare Advantage Organization, pursuant to a
21

government contract. This paragraph (49) is exempt from
22

the provisions of Section 2-70.
23

(50)

(49)
Beginning on January 1, 2026, as further
24

defined in Section 2-10, food for human consumption that
25

is to be consumed off the premises where it is sold (other
26

than alcoholic beverages, food consisting of or infused

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with adult use cannabis, soft drinks, candy, and food that
2

has been prepared for immediate consumption). This item
3

(50)

(49)
is exempt from the provisions of Section 2-70.
4

(51)

(49)
Gross receipts from the lease of the
5

following tangible personal property:
6

(1) computer software transferred subject to a
7

license that meets the following requirements:
8

(A) it is evidenced by a written agreement
9

signed by the licensor and the customer;
10

(i) an electronic agreement in which the
11

customer accepts the license by means of an
12

electronic signature that is verifiable and
13

can be authenticated and is attached to or
14

made part of the license will comply with this
15

requirement;
16

(ii) a license agreement in which the
17

customer electronically accepts the terms by
18

clicking "I agree" does not comply with this
19

requirement;
20

(B) it restricts the customer's duplication
21

and use of the software;
22

(C) it prohibits the customer from licensing,
23

sublicensing, or transferring the software to a
24

third party (except to a related party) without
25

the permission and continued control of the
26

licensor;

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(D) the licensor has a policy of providing
2

another copy at minimal or no charge if the
3

customer loses or damages the software, or of
4

permitting the licensee to make and keep an
5

archival copy, and such policy is either stated in
6

the license agreement, supported by the licensor's
7

books and records, or supported by a notarized
8

statement made under penalties of perjury by the
9

licensor; and
10

(E) the customer must destroy or return all
11

copies of the software to the licensor at the end
12

of the license period; this provision is deemed to
13

be met, in the case of a perpetual license,
14

without being set forth in the license agreement;
15

and
16

(2) property that is subject to a tax on lease
17

receipts imposed by a home rule unit of local
18

government if the ordinance imposing that tax was
19

adopted prior to January 1, 2023.
20

(52) A motor vehicle of the first division, as defined
21

in Section 1-146 of the Illinois Vehicle Code, that is
22

registered in the State to an Illinois resident who
23

acquired the vehicle while the Illinois resident was
24

stationed outside of this State as an active duty member
25

of the military. This item (52) is exempt from the
26

provisions of Section 2-70.

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As used in this item (52):

2

"Active duty member of the military" means a service
3

member who undertakes any full-time military training or
4

full-time military duty, no matter how described under
5

federal or State law, for which a service member is
6

ordered to report by the President, by the Governor of a
7

state, commonwealth, or territory of the United States, by
8

an act of Congress, or by any other appropriate military
9

authority.

10

"Illinois resident" means an individual who meets the
11

definition of "resident" under subparagraph (A) of
12

paragraph (20) of subsection (a) of Section 1501 of the
13

Illinois Income Tax Act.

14

"Service member" means a person who is a member of any
15

component of the United States Armed Forces or the
16

National Guard of any state, the District of Columbia, a
17

commonwealth, or a territory of the United States.

18
(Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
19
102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
20
Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
21
5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
22
5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
23
6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; 103-592,
24
eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff. 7-1-24;
25
103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995, eff.
26
8-9-24; revised 11-26-24.)

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Section 25.
The Illinois Vehicle Code is amended by
2
changing Section 3-1001 as follows:

3

(625 ILCS 5/3-1001)

(from Ch. 95 1/2, par. 3-1001)
4

Sec. 3-1001.
A tax is hereby imposed on the privilege of
5
using, in this State, any motor vehicle as defined in Section
6
1-146 of this Code acquired by gift, transfer, or purchase,
7
and having a year model designation preceding the year of
8
application for title by 5 or fewer years prior to October 1,
9
1985 and 10 or fewer years on and after October 1, 1985 and
10
prior to January 1, 1988. On and after January 1, 1988, the tax
11
shall apply to all motor vehicles without regard to model
12
year. Except that the tax shall not apply
:

13

(i) if the use of the motor vehicle is otherwise taxed
14

under the Use Tax Act;
15

(ii) if the motor vehicle is bought and used by a
16

governmental agency or a society, association, foundation
17

or institution organized and operated exclusively for
18

charitable, religious or educational purposes;
19

(iii) if the use of the motor vehicle is not subject to
20

the Use Tax Act by reason of subsection (a), (b), (c), (d),
21

(e) or (f) of Section 3-55 of that Act dealing with the
22

prevention of actual or likely multistate taxation;
23

(iv) to implements of husbandry;
24

(v) when a junking certificate is issued pursuant to

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Section 3-117(a) of this Code;
2

(vi) when a vehicle is subject to the replacement
3

vehicle tax imposed by Section 3-2001 of this Act;
4

(vii) when the transfer is a gift to a beneficiary in
5

the administration of an estate and the beneficiary is a
6

surviving spouse
; or

.
7

(viii) if the use of the motor vehicle is not subject
8

to the Use Tax Act by reason of item (47) of Section 3-5 of
9

that Act.

10

Prior to January 1, 1988, the rate of tax shall be 5% of
11
the selling price for each purchase of a motor vehicle covered
12
by Section 3-1001 of this Code. Except as hereinafter
13
provided, beginning January 1, 1988 and until January 1, 2022,
14
the rate of tax shall be as follows for transactions in which
15
the selling price of the motor vehicle is less than $15,000:
16
Number of Years Transpired After
Applicable Tax

17
Model Year of Motor Vehicle
18
1 or less
$390
19
2
290
20
3
215
21
4
165
22
5
115
23
6
90
24
7
80
25
8
65
26
9
50

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10
40
2
over 10
25
3
Except as hereinafter provided, beginning January 1, 1988 and
4
until January 1, 2022, the rate of tax shall be as follows for
5
transactions in which the selling price of the motor vehicle
6
is $15,000 or more:
7
Selling Price
Applicable Tax
8
$15,000 - $19,999
$ 750
9
$20,000 - $24,999
$1,000
10
$25,000 - $29,999
$1,250
11
$30,000 and over
$1,500
12

Except as hereinafter provided, beginning on January 1,
13
2022, the rate of tax shall be as follows for transactions in
14
which the selling price of the motor vehicle is less than
15
$15,000:
16

(1) if one year or less has transpired after the model
17

year of the vehicle, then the applicable tax is $465;
18

(2) if 2 years have transpired after the model year of
19

the motor vehicle, then the applicable tax is $365;
20

(3) if 3 years have transpired after the model year of
21

the motor vehicle, then the applicable tax is $290;
22

(4) if 4 years have transpired after the model year of
23

the motor vehicle, then the applicable tax is $240;
24

(5) if 5 years have transpired after the model year of
25

the motor vehicle, then the applicable tax is $190;
26

(6) if 6 years have transpired after the model year of

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the motor vehicle, then the applicable tax is $165;
2

(7) if 7 years have transpired after the model year of
3

the motor vehicle, then the applicable tax is $155;
4

(8) if 8 years have transpired after the model year of
5

the motor vehicle, then the applicable tax is $140;
6

(9) if 9 years have transpired after the model year of
7

the motor vehicle, then the applicable tax is $125;
8

(10) if 10 years have transpired after the model year
9

of the motor vehicle, then the applicable tax is $115; and
10

(11) if more than 10 years have transpired after the
11

model year of the motor vehicle, then the applicable tax
12

is $100.
13

Except as hereinafter provided, beginning on January 1,
14
2022, the rate of tax shall be as follows for transactions in
15
which the selling price of the motor vehicle is $15,000 or
16
more:
17

(1) if the selling price is $15,000 or more, but less
18

than $20,000, then the applicable tax shall be $850;
19

(2) if the selling price is $20,000 or more, but less
20

than $25,000, then the applicable tax shall be $1,100;
21

(3) if the selling price is $25,000 or more, but less
22

than $30,000, then the applicable tax shall be $1,350;
23

(4) if the selling price is $30,000 or more, but less
24

than $50,000, then the applicable tax shall be $1,600;
25

(5) if the selling price is $50,000 or more, but less
26

than $100,000, then the applicable tax shall be $2,600;

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(6) if the selling price is $100,000 or more, but less
2

than $1,000,000, then the applicable tax shall be $5,100;
3

and
4

(7) if the selling price is $1,000,000 or more, then
5

the applicable tax shall be $10,100.
6
For the following transactions, the tax rate shall be $15 for
7
each motor vehicle acquired in such transaction:
8

(i) when the transferee or purchaser is the spouse,
9

mother, father, brother, sister or child of the
10

transferor;
11

(ii) when the transfer is a gift to a beneficiary in
12

the administration of an estate, including, but not
13

limited to, the administration of an inter vivos trust
14

that became irrevocable upon the death of a grantor, and
15

the beneficiary is not a surviving spouse;
16

(iii) when a motor vehicle which has once been
17

subjected to the Illinois retailers' occupation tax or use
18

tax is transferred in connection with the organization,
19

reorganization, dissolution or partial liquidation of an
20

incorporated or unincorporated business wherein the
21

beneficial ownership is not changed.
22

A claim that the transaction is taxable under subparagraph
23
(i) shall be supported by such proof of family relationship as
24
provided by rules of the Department.
25

For a transaction in which a motorcycle, motor driven
26
cycle or moped is acquired the tax rate shall be $25.

SB0133
- 109 -
LRB104 03841 HLH 13865 b
1

On and after October 1, 1985 and until January 1, 2022,
2
1/12 of $5,000,000 of the moneys received by the Department of
3
Revenue pursuant to this Section shall be paid each month into
4
the Build Illinois Fund; on and after January 1, 2022, 1/12 of
5
$40,000,000 of the moneys received by the Department of
6
Revenue pursuant to this Section shall be paid each month into
7
the Build Illinois Fund; and the remainder shall be paid into
8
the General Revenue Fund.
9

The tax imposed by this Section shall be abated and no
10
longer imposed when the amount deposited to secure the bonds
11
issued pursuant to the Build Illinois Bond Act is sufficient
12
to provide for the payment of the principal of, and interest
13
and premium, if any, on the bonds, as certified to the State
14
Comptroller and the Director of Revenue by the Director of the
15
Governor's Office of Management and Budget.
16
(Source: P.A. 102-353, eff. 1-1-22; 102-762, eff. 5-13-22.)

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