USE/OCC TX-MULTISTATE

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3790

Introduced 2/5/2026, by Sen. Chris Balkema

SYNOPSIS AS INTRODUCED:

35 ILCS 105/3-55

from Ch. 120, par. 439.3-55
35 ILCS 110/3-45

from Ch. 120, par. 439.33-45
35 ILCS 115/3-5
35 ILCS 120/2-5

Amends the Use Tax Act, the Service Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act. Reinstates the
exemption for the use or sale of tangible personal property purchased from
an Illinois retailer by a taxpayer engaged in centralized purchasing
activities in Illinois. Provides that the exemption is repealed on June
30, 2031 (currently, June 30, 2016). Effective immediately.
LRB104 19634 HLH 33083 b

A BILL FOR

SB3790
LRB104 19634 HLH 33083 b
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
3-55 as follows:

6

(35 ILCS 105/3-55)

(from Ch. 120, par. 439.3-55)
7

Sec. 3-55.
Multistate exemption.
To prevent actual or
8
likely multistate taxation, the tax imposed by this Act does
9
not apply to the use of tangible personal property in this
10
State under the following circumstances:
11

(a) The use, in this State, of tangible personal property
12
acquired outside this State by a nonresident individual and
13
brought into this State by the individual for his or her own
14
use while temporarily within this State or while passing
15
through this State.
16

(b) (Blank).
17

(c) The use, in this State, by owners or lessors, lessees,
18
or shippers of tangible personal property that is utilized by
19
interstate carriers for hire for use as rolling stock moving
20
in interstate commerce as long as so used by the interstate
21
carriers for hire, and equipment operated by a
22
telecommunications provider, licensed as a common carrier by
23
the Federal Communications Commission, which is permanently

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1
installed in or affixed to aircraft moving in interstate
2
commerce.
3

(d) The use, in this State, of tangible personal property
4
that is acquired outside this State and caused to be brought
5
into this State by a person who has already paid a tax in
6
another State in respect to the sale, purchase, or use of that
7
property, to the extent of the amount of the tax properly due
8
and paid in the other State.
9

(e) The temporary storage, in this State, of tangible
10
personal property that is acquired outside this State and
11
that, after being brought into this State and stored here
12
temporarily, is used solely outside this State or is
13
physically attached to or incorporated into other tangible
14
personal property that is used solely outside this State, or
15
is altered by converting, fabricating, manufacturing,
16
printing, processing, or shaping, and, as altered, is used
17
solely outside this State.
18

(f) The temporary storage in this State of building
19
materials and fixtures that are acquired either in this State
20
or outside this State by an Illinois registered combination
21
retailer and construction contractor, and that the purchaser
22
thereafter uses outside this State by incorporating that
23
property into real estate located outside this State.
24

(g) The use or purchase of tangible personal property by a
25
common carrier by rail or motor that receives the physical
26
possession of the property in Illinois, and that transports

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the property, or shares with another common carrier in the
2
transportation of the property, out of Illinois on a standard
3
uniform bill of lading showing the seller of the property as
4
the shipper or consignor of the property to a destination
5
outside Illinois, for use outside Illinois.
6

(h) Except as provided in subsections (h-1) and (h-1.5),
7
the use, in this State, of a motor vehicle that was sold in
8
this State to a nonresident, even though the motor vehicle is
9
delivered to the nonresident in this State, if the motor
10
vehicle is not to be titled in this State, and if a drive-away
11
permit is issued to the motor vehicle as provided in Section
12
3-603 of the Illinois Vehicle Code or if the nonresident
13
purchaser has vehicle registration plates to transfer to the
14
motor vehicle upon returning to his or her home state. The
15
issuance of the drive-away permit or having the out-of-state
16
registration plates to be transferred shall be prima facie
17
evidence that the motor vehicle will not be titled in this
18
State.
19

(h-1) The exemption under subsection (h) does not apply if
20
the state in which the motor vehicle will be titled does not
21
allow a reciprocal exemption for the use in that state of a
22
motor vehicle sold and delivered in that state to an Illinois
23
resident but titled in Illinois. The tax collected under this
24
Act on the sale of a motor vehicle in this State to a resident
25
of another state that does not allow a reciprocal exemption
26
shall be imposed at a rate equal to the state's rate of tax on

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taxable property in the state in which the purchaser is a
2
resident, except that the tax shall not exceed the tax that
3
would otherwise be imposed under this Act. At the time of the
4
sale, the purchaser shall execute a statement, signed under
5
penalty of perjury, of his or her intent to title the vehicle
6
in the state in which the purchaser is a resident within 30
7
days after the sale and of the fact of the payment to the State
8
of Illinois of tax in an amount equivalent to the state's rate
9
of tax on taxable property in his or her state of residence and
10
shall submit the statement to the appropriate tax collection
11
agency in his or her state of residence. In addition, the
12
retailer must retain a signed copy of the statement in his or
13
her records. Nothing in this subsection shall be construed to
14
require the removal of the vehicle from this state following
15
the filing of an intent to title the vehicle in the purchaser's
16
state of residence if the purchaser titles the vehicle in his
17
or her state of residence within 30 days after the date of
18
sale. The tax collected under this Act in accordance with this
19
subsection (h-1) shall be proportionately distributed as if
20
the tax were collected at the 6.25% general rate imposed under
21
this Act.
22

(h-1.5) There is a rebuttable presumption that the
23
exemption under subsection (h) does not apply if the purchaser
24
is a limited liability company and a member of the limited
25
liability company is a resident of Illinois. This presumption
26
may be rebutted by other evidence, such as evidence the motor

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vehicle is insured for primary use at an address outside of
2
Illinois or evidence that the motor vehicle will be
3
permanently stored or garaged at a physical address outside
4
Illinois.
5

(h-2) The following exemptions apply with respect to
6
certain aircraft:
7

(1) Beginning on July 1, 2007, no tax is imposed under
8

this Act on the purchase of an aircraft, as defined in
9

Section 3 of the Illinois Aeronautics Act, if all of the
10

following conditions are met:
11

(A) the aircraft leaves this State within 15 days
12

after the later of either the issuance of the final
13

billing for the purchase of the aircraft or the
14

authorized approval for return to service, completion
15

of the maintenance record entry, and completion of the
16

test flight and ground test for inspection, as
17

required by 14 C.F.R. 91.407;
18

(B) the aircraft is not based or registered in
19

this State after the purchase of the aircraft; and
20

(C) the purchaser provides the Department with a
21

signed and dated certification, on a form prescribed
22

by the Department, certifying that the requirements of
23

this item (1) are met. The certificate must also
24

include the name and address of the purchaser, the
25

address of the location where the aircraft is to be
26

titled or registered, the address of the primary

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physical location of the aircraft, and other
2

information that the Department may reasonably
3

require.
4

(2) Beginning on July 1, 2007, no tax is imposed under
5

this Act on the use of an aircraft, as defined in Section 3
6

of the Illinois Aeronautics Act, that is temporarily
7

located in this State for the purpose of a prepurchase
8

evaluation if all of the following conditions are met:
9

(A) the aircraft is not based or registered in
10

this State after the prepurchase evaluation; and
11

(B) the purchaser provides the Department with a
12

signed and dated certification, on a form prescribed
13

by the Department, certifying that the requirements of
14

this item (2) are met. The certificate must also
15

include the name and address of the purchaser, the
16

address of the location where the aircraft is to be
17

titled or registered, the address of the primary
18

physical location of the aircraft, and other
19

information that the Department may reasonably
20

require.
21

(3) Beginning on July 1, 2007, no tax is imposed under
22

this Act on the use of an aircraft, as defined in Section 3
23

of the Illinois Aeronautics Act, that is temporarily
24

located in this State for the purpose of a post-sale
25

customization if all of the following conditions are met:
26

(A) the aircraft leaves this State within 15 days

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1

after the authorized approval for return to service,
2

completion of the maintenance record entry, and
3

completion of the test flight and ground test for
4

inspection, as required by 14 C.F.R. 91.407;
5

(B) the aircraft is not based or registered in
6

this State either before or after the post-sale
7

customization; and
8

(C) the purchaser provides the Department with a
9

signed and dated certification, on a form prescribed
10

by the Department, certifying that the requirements of
11

this item (3) are met. The certificate must also
12

include the name and address of the purchaser, the
13

address of the location where the aircraft is to be
14

titled or registered, the address of the primary
15

physical location of the aircraft, and other
16

information that the Department may reasonably
17

require.
18

If tax becomes due under this subsection (h-2) because of
19
the purchaser's use of the aircraft in this State, the
20
purchaser shall file a return with the Department and pay the
21
tax on the fair market value of the aircraft. This return and
22
payment of the tax must be made no later than 30 days after the
23
aircraft is used in a taxable manner in this State. The tax is
24
based on the fair market value of the aircraft on the date that
25
it is first used in a taxable manner in this State.
26

For purposes of this subsection (h-2):

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"Based in this State" means hangared, stored, or otherwise
2
used, excluding post-sale customizations as defined in this
3
Section, for 10 or more days in each 12-month period
4
immediately following the date of the sale of the aircraft.
5

"Post-sale customization" means any improvement,
6
maintenance, or repair that is performed on an aircraft
7
following a transfer of ownership of the aircraft.
8

"Prepurchase evaluation" means an examination of an
9
aircraft to provide a potential purchaser with information
10
relevant to the potential purchase.
11

"Registered in this State" means an aircraft registered
12
with the Department of Transportation, Aeronautics Division,
13
or titled or registered with the Federal Aviation
14
Administration to an address located in this State.
15

This subsection (h-2) is exempt from the provisions of
16
Section 3-90.
17

(i) Beginning July 1, 1999, the use, in this State, of fuel
18
acquired outside this State and brought into this State in the
19
fuel supply tanks of locomotives engaged in freight hauling
20
and passenger service for interstate commerce. This subsection
21
is exempt from the provisions of Section 3-90.
22

(j) Beginning on January 1, 2002 and through June 30,
23
2016,
and beginning again on July 1, 2026 and through June 30,
24
2031,
the use of tangible personal property purchased
from an
25
Illinois retailer
by a taxpayer engaged in centralized
26
purchasing activities in Illinois who will, upon receipt of

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1
the property in Illinois, temporarily store the property in
2
Illinois (i) for the purpose of subsequently transporting it
3
outside this State for use or consumption thereafter solely
4
outside this State or (ii) for the purpose of being processed,
5
fabricated, or manufactured into, attached to, or incorporated
6
into other tangible personal property to be transported
7
outside this State and thereafter used or consumed solely
8
outside this State. The Director of Revenue shall, pursuant to
9
rules adopted in accordance with the Illinois Administrative
10
Procedure Act, issue a permit to any taxpayer in good standing
11
with the Department who is eligible for the exemption under
12
this subsection (j). The permit issued under this subsection
13
(j) shall authorize the holder, to the extent and in the manner
14
specified in the rules adopted under this Act, to purchase
15
tangible personal property from a retailer exempt from the
16
taxes imposed by this Act. Taxpayers shall maintain all
17
necessary books and records to substantiate the use and
18
consumption of all such tangible personal property outside of
19
the State of Illinois.
20
(Source: P.A. 103-592, eff. 1-1-25; 104-6, eff. 6-16-25.)

21

Section 10.
The Service Use Tax Act is amended by changing
22
Section 3-45 as follows:

23

(35 ILCS 110/3-45)

(from Ch. 120, par. 439.33-45)
24

Sec. 3-45.
Multistate exemption.
To prevent actual or

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1
likely multistate taxation, the tax imposed by this Act does
2
not apply to the use of tangible personal property in this
3
State under the following circumstances:
4

(a) The use, in this State, of property acquired outside
5
this State by a nonresident individual and brought into this
6
State by the individual for his or her own use while
7
temporarily within this State or while passing through this
8
State.
9

(b) The use, in this State, of property that is acquired
10
outside this State and that is moved into this State for use as
11
rolling stock moving in interstate commerce.
12

(c) The use, in this State, of property that is acquired
13
outside this State and caused to be brought into this State by
14
a person who has already paid a tax in another state in respect
15
to the sale, purchase, or use of that property, to the extent
16
of the amount of the tax properly due and paid in the other
17
state.
18

(d) The temporary storage, in this State, of property that
19
is acquired outside this State and that after being brought
20
into this State and stored here temporarily, is used solely
21
outside this State or is physically attached to or
22
incorporated into other property that is used solely outside
23
this State, or is altered by converting, fabricating,
24
manufacturing, printing, processing, or shaping, and, as
25
altered, is used solely outside this State.
26

(e) Beginning July 1, 1999, the use, in this State, of fuel

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acquired outside this State and brought into this State in the
2
fuel supply tanks of locomotives engaged in freight hauling
3
and passenger service for interstate commerce. This subsection
4
is exempt from the provisions of Section 3-75.
5

(f) Beginning on January 1, 2002 and through June 30,
6
2016,
and beginning again on July 1, 2026 and through June 30,
7
2031,
the use of tangible personal property purchased
from an
8
Illinois retailer
by a taxpayer engaged in centralized
9
purchasing activities in Illinois who will, upon receipt of
10
the property in Illinois, temporarily store the property in
11
Illinois (i) for the purpose of subsequently transporting it
12
outside this State for use or consumption thereafter solely
13
outside this State or (ii) for the purpose of being processed,
14
fabricated, or manufactured into, attached to, or incorporated
15
into other tangible personal property to be transported
16
outside this State and thereafter used or consumed solely
17
outside this State. The Director of Revenue shall, pursuant to
18
rules adopted in accordance with the Illinois Administrative
19
Procedure Act, issue a permit to any taxpayer in good standing
20
with the Department who is eligible for the exemption under
21
this subsection (f). The permit issued under this subsection
22
(f) shall authorize the holder, to the extent and in the manner
23
specified in the rules adopted under this Act, to purchase
24
tangible personal property from a retailer exempt from the
25
taxes imposed by this Act. Taxpayers shall maintain all
26
necessary books and records to substantiate the use and

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consumption of all such tangible personal property outside of
2
the State of Illinois.
3
(Source: P.A. 97-73, eff. 6-30-11.)

4

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

6

(35 ILCS 115/3-5)
7

Sec. 3-5.
Exemptions.
The following tangible personal
8
property is exempt from the tax imposed by this Act:
9

(1) Personal property sold by a corporation, society,
10
association, foundation, institution, or organization, other
11
than a limited liability company, that is organized and
12
operated as a not-for-profit service enterprise for the
13
benefit of persons 65 years of age or older if the personal
14
property was not purchased by the enterprise for the purpose
15
of resale by the enterprise.
16

(2) Personal property purchased by a not-for-profit
17
Illinois county fair association for use in conducting,
18
operating, or promoting the county fair.
19

(3) Personal property purchased by any not-for-profit arts
20
or cultural organization that establishes, by proof required
21
by the Department by rule, that it has received an exemption
22
under Section 501(c)(3) of the Internal Revenue Code and that
23
is organized and operated primarily for the presentation or
24
support of arts or cultural programming, activities, or

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

(4) Legal tender, currency, medallions, or gold or silver
11
coinage issued by the State of Illinois, the government of the
12
United States of America, or the government of any foreign
13
country, and bullion.
14

(5) Until July 1, 2003 and beginning again on September 1,
15
2004 through August 30, 2014, graphic arts machinery and
16
equipment, including repair and replacement parts, both new
17
and used, and including that manufactured on special order or
18
purchased for lease, certified by the purchaser to be used
19
primarily for graphic arts production. Equipment includes
20
chemicals or chemicals acting as catalysts but only if the
21
chemicals or chemicals acting as catalysts effect a direct and
22
immediate change upon a graphic arts product. Beginning on
23
July 1, 2017, graphic arts machinery and equipment is included
24
in the manufacturing and assembling machinery and equipment
25
exemption under Section 2 of this Act.
26

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

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organization affiliated with an elementary or secondary school
2
located in Illinois.
3

(7) Farm machinery and equipment, both new and used,
4
including that manufactured on special order, certified by the
5
purchaser to be used primarily for production agriculture or
6
State or federal agricultural programs, including individual
7
replacement parts for the machinery and equipment, including
8
machinery and equipment purchased for lease, and including
9
implements of husbandry defined in Section 1-130 of the
10
Illinois Vehicle Code, farm machinery and agricultural
11
chemical and fertilizer spreaders, and nurse wagons required
12
to be registered under Section 3-809 of the Illinois Vehicle
13
Code, but excluding other motor vehicles required to be
14
registered under the Illinois Vehicle Code. Horticultural
15
polyhouses or hoop houses used for propagating, growing, or
16
overwintering plants shall be considered farm machinery and
17
equipment under this item (7). Agricultural chemical tender
18
tanks and dry boxes shall include units sold separately from a
19
motor vehicle required to be licensed and units sold mounted
20
on a motor vehicle required to be licensed if the selling price
21
of the tender is separately stated.
22

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

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1
limited to, soil testing sensors, computers, monitors,
2
software, global positioning and mapping systems, and other
3
such equipment.
4

Farm machinery and equipment also includes computers,
5
sensors, software, and related equipment used primarily in the
6
computer-assisted operation of production agriculture
7
facilities, equipment, and activities such as, but not limited
8
to, the collection, monitoring, and correlation of animal and
9
crop data for the purpose of formulating animal diets and
10
agricultural chemicals.
11

Beginning on January 1, 2024, farm machinery and equipment
12
also includes electrical power generation equipment used
13
primarily for production agriculture.
14

This item (7) is exempt from the provisions of Section
15
3-55.
16

(8) Until June 30, 2013, fuel and petroleum products sold
17
to or used by an air common carrier, certified by the carrier
18
to be used for consumption, shipment, or storage in the
19
conduct of its business as an air common carrier, for a flight
20
destined for or returning from a location or locations outside
21
the United States without regard to previous or subsequent
22
domestic stopovers.
23

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

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1
engaged in foreign trade or is engaged in trade between the
2
United States and any of its possessions and (ii) transports
3
at least one individual or package for hire from the city of
4
origination to the city of final destination on the same
5
aircraft, without regard to a change in the flight number of
6
that aircraft.
7

(9) Proceeds of mandatory service charges separately
8
stated on customers' bills for the purchase and consumption of
9
food and beverages, to the extent that the proceeds of the
10
service charge are in fact turned over as tips or as a
11
substitute for tips to the employees who participate directly
12
in preparing, serving, hosting or cleaning up the food or
13
beverage function with respect to which the service charge is
14
imposed.
15

(10) Until July 1, 2003, oil field exploration, drilling,
16
and production equipment, including (i) rigs and parts of
17
rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
18
pipe and tubular goods, including casing and drill strings,
19
(iii) pumps and pump-jack units, (iv) storage tanks and flow
20
lines, (v) any individual replacement part for oil field
21
exploration, drilling, and production equipment, and (vi)
22
machinery and equipment purchased for lease; but excluding
23
motor vehicles required to be registered under the Illinois
24
Vehicle Code.
25

(11) Photoprocessing machinery and equipment, including
26
repair and replacement parts, both new and used, including

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1
that manufactured on special order, certified by the purchaser
2
to be used primarily for photoprocessing, and including
3
photoprocessing machinery and equipment purchased for lease.
4

(12) Until July 1, 2028, coal and aggregate exploration,
5
mining, off-highway hauling, processing, maintenance, and
6
reclamation equipment, including replacement parts and
7
equipment, and including equipment purchased for lease, but
8
excluding motor vehicles required to be registered under the
9
Illinois Vehicle Code. The changes made to this Section by
10
Public Act 97-767 apply on and after July 1, 2003, but no claim
11
for credit or refund is allowed on or after August 16, 2013
12
(the effective date of Public Act 98-456) for such taxes paid
13
during the period beginning July 1, 2003 and ending on August
14
16, 2013 (the effective date of Public Act 98-456).
15

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

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Specialized Mental Health Rehabilitation Act of 2013.
2

(14) Semen used for artificial insemination of livestock
3
for direct agricultural production.
4

(15) Horses, or interests in horses, registered with and
5
meeting the requirements of any of the Arabian Horse Club
6
Registry of America, Appaloosa Horse Club, American Quarter
7
Horse Association, United States Trotting Association, or
8
Jockey Club, as appropriate, used for purposes of breeding or
9
racing for prizes. This item (15) is exempt from the
10
provisions of Section 3-55, and the exemption provided for
11
under this item (15) applies for all periods beginning May 30,
12
1995, but no claim for credit or refund is allowed on or after
13
January 1, 2008 (the effective date of Public Act 95-88) for
14
such taxes paid during the period beginning May 30, 2000 and
15
ending on January 1, 2008 (the effective date of Public Act
16
95-88).
17

(16) Computers and communications equipment utilized for
18
any hospital purpose and equipment used in the diagnosis,
19
analysis, or treatment of hospital patients sold to a lessor
20
who leases the equipment, under a lease of one year or longer
21
executed or in effect at the time of the purchase, 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.
25

(17) Personal property sold to a lessor who leases the
26
property, under a lease of one year or longer executed or in

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effect at the time of the purchase, to a governmental body that
2
has been issued an active tax exemption identification number
3
by the Department under Section 1g of the Retailers'
4
Occupation Tax Act.
5

(18) Beginning with taxable years ending on or after
6
December 31, 1995 and ending with taxable years ending on or
7
before December 31, 2004, personal property that is donated
8
for disaster relief to be used in a State or federally declared
9
disaster area in Illinois or bordering Illinois by a
10
manufacturer or retailer that is registered in this State to a
11
corporation, society, association, foundation, or institution
12
that has been issued a sales tax exemption identification
13
number by the Department that assists victims of the disaster
14
who reside within the declared disaster area.
15

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

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disaster.
2

(20) Beginning July 1, 1999, game or game birds sold at a
3
"game breeding and hunting preserve area" as that term is used
4
in the Wildlife Code. This paragraph is exempt from the
5
provisions of Section 3-55.
6

(21) A motor vehicle, as that term is defined in Section
7
1-146 of the Illinois Vehicle Code, that is donated to a
8
corporation, limited liability company, society, association,
9
foundation, or institution that is determined by the
10
Department to be organized and operated exclusively for
11
educational purposes. For purposes of this exemption, "a
12
corporation, limited liability company, society, association,
13
foundation, or institution organized and operated exclusively
14
for educational purposes" means all tax-supported public
15
schools, private schools that offer systematic instruction in
16
useful branches of learning by methods common to public
17
schools and that compare favorably in their scope and
18
intensity with the course of study presented in tax-supported
19
schools, and vocational or technical schools or institutes
20
organized and operated exclusively to provide a course of
21
study of not less than 6 weeks duration and designed to prepare
22
individuals to follow a trade or to pursue a manual,
23
technical, mechanical, industrial, business, or commercial
24
occupation.
25

(22) Beginning January 1, 2000, personal property,
26
including food, purchased through fundraising events for the

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benefit of a public or private elementary or secondary school,
2
a group of those schools, or one or more school districts if
3
the events are sponsored by an entity recognized by the school
4
district that consists primarily of volunteers and includes
5
parents and teachers of the school children. This paragraph
6
does not apply to fundraising events (i) for the benefit of
7
private home instruction or (ii) for which the fundraising
8
entity purchases the personal property sold at the events from
9
another individual or entity that sold the property for the
10
purpose of resale by the fundraising entity and that profits
11
from the sale to the fundraising entity. This paragraph is
12
exempt from the provisions of Section 3-55.
13

(23) Beginning January 1, 2000 and through December 31,
14
2001, new or used automatic vending machines that prepare and
15
serve hot food and beverages, including coffee, soup, and
16
other items, and replacement parts for these machines.
17
Beginning January 1, 2002 and through June 30, 2003, machines
18
and parts for machines used in commercial, coin-operated
19
amusement and vending business if a use or occupation tax is
20
paid on the gross receipts derived from the use of the
21
commercial, coin-operated amusement and vending machines. This
22
paragraph is exempt from the provisions of Section 3-55.
23

(24) Beginning on August 2, 2001 (the effective date of
24
Public Act 92-227), computers and communications equipment
25
utilized for any hospital purpose and equipment used in the
26
diagnosis, analysis, or treatment of hospital patients sold to

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a lessor who leases the equipment, under a lease of one year or
2
longer executed or in effect at the time of the purchase, to a
3
hospital that has been issued an active tax exemption
4
identification number by the Department under Section 1g of
5
the Retailers' Occupation Tax Act. This paragraph is exempt
6
from the provisions of Section 3-55.
7

(25) Beginning on August 2, 2001 (the effective date of
8
Public Act 92-227), personal property sold to a lessor who
9
leases the property, under a lease of one year or longer
10
executed or in effect at the time of the purchase, to a
11
governmental body that has been issued an active tax exemption
12
identification number by the Department under Section 1g of
13
the Retailers' Occupation Tax Act. This paragraph is exempt
14
from the provisions of Section 3-55.
15

(26) Beginning on January 1, 2002 and through June 30,
16
2016,
and beginning again on June 30, 2026 and through June 30,
17
2031,
tangible personal property purchased
from an Illinois
18
retailer
by a taxpayer engaged in centralized purchasing
19
activities in Illinois who will, upon receipt of the property
20
in Illinois, temporarily store the property in Illinois (i)
21
for the purpose of subsequently transporting it outside this
22
State for use or consumption thereafter solely outside this
23
State or (ii) for the purpose of being processed, fabricated,
24
or manufactured into, attached to, or incorporated into other
25
tangible personal property to be transported outside this
26
State and thereafter used or consumed solely outside this

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State. The Director of Revenue shall, pursuant to rules
2
adopted in accordance with the Illinois Administrative
3
Procedure Act, issue a permit to any taxpayer in good standing
4
with the Department who is eligible for the exemption under
5
this paragraph (26). The permit issued under this paragraph
6
(26) shall authorize the holder, to the extent and in the
7
manner specified in the rules adopted under this Act, to
8
purchase tangible personal property from a retailer exempt
9
from the taxes imposed by this Act. Taxpayers shall maintain
10
all necessary books and records to substantiate the use and
11
consumption of all such tangible personal property outside of
12
the State of Illinois.
13

(27) Beginning January 1, 2008, tangible personal property
14
used in the construction or maintenance of a community water
15
supply, as defined under Section 3.145 of the Environmental
16
Protection Act, that is operated by a not-for-profit
17
corporation that holds a valid water supply permit issued
18
under Title IV of the Environmental Protection Act. This
19
paragraph is exempt from the provisions of Section 3-55.
20

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

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of the completion of the municipal convention hall or upon the
2
retirement or redemption of any bonds or other debt
3
instruments issued by the public-facilities corporation in
4
connection with the development of the municipal convention
5
hall. This exemption includes existing public-facilities
6
corporations as provided in Section 11-65-25 of the Illinois
7
Municipal Code. This paragraph is exempt from the provisions
8
of Section 3-55.
9

(29) Beginning January 1, 2010 and continuing through
10
December 31, 2029, materials, parts, equipment, components,
11
and furnishings incorporated into or upon an aircraft as part
12
of the modification, refurbishment, completion, replacement,
13
repair, or maintenance of the aircraft. This exemption
14
includes consumable supplies used in the modification,
15
refurbishment, completion, replacement, repair, and
16
maintenance of aircraft. However, until January 1, 2024, this
17
exemption excludes any materials, parts, equipment,
18
components, and consumable supplies used in the modification,
19
replacement, repair, and maintenance of aircraft engines or
20
power plants, whether such engines or power plants are
21
installed or uninstalled upon any such aircraft. "Consumable
22
supplies" include, but are not limited to, adhesive, tape,
23
sandpaper, general purpose lubricants, cleaning solution,
24
latex gloves, and protective films.
25

Beginning January 1, 2010 and continuing through December
26
31, 2023, this exemption applies only to the transfer of

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qualifying tangible personal property incident to the
2
modification, refurbishment, completion, replacement, repair,
3
or maintenance of an aircraft by persons who (i) hold an Air
4
Agency Certificate and are empowered to operate an approved
5
repair station by the Federal Aviation Administration, (ii)
6
have a Class IV Rating, and (iii) conduct operations in
7
accordance with Part 145 of the Federal Aviation Regulations.
8
The exemption does not include aircraft operated by a
9
commercial air carrier providing scheduled passenger air
10
service pursuant to authority issued under Part 121 or Part
11
129 of the Federal Aviation Regulations. From January 1, 2024
12
through December 31, 2029, this exemption applies only to the
13
transfer of qualifying tangible personal property incident to:
14
(A) the modification, refurbishment, completion, repair,
15
replacement, or maintenance of an aircraft by persons who (i)
16
hold an Air Agency Certificate and are empowered to operate an
17
approved repair station by the Federal Aviation
18
Administration, (ii) have a Class IV Rating, and (iii) conduct
19
operations in accordance with Part 145 of the Federal Aviation
20
Regulations; and (B) the modification, replacement, repair,
21
and maintenance of aircraft engines or power plants without
22
regard to whether or not those persons meet the qualifications
23
of item (A).
24

The changes made to this paragraph (29) by Public Act
25
98-534 are declarative of existing law. It is the intent of the
26
General Assembly that the exemption under this paragraph (29)

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applies continuously from January 1, 2010 through December 31,
2
2024; however, no claim for credit or refund is allowed for
3
taxes paid as a result of the disallowance of this exemption on
4
or after January 1, 2015 and prior to February 5, 2020 (the
5
effective date of Public Act 101-629).
6

(30) Beginning January 1, 2017 and through December 31,
7
2026, menstrual pads, tampons, and menstrual cups.
8

(31) Tangible personal property transferred to a purchaser
9
who is exempt from tax by operation of federal law. This
10
paragraph is exempt from the provisions of Section 3-55.
11

(32) Qualified tangible personal property used in the
12
construction or operation of a data center that has been
13
granted a certificate of exemption by the Department of
14
Commerce and Economic Opportunity, whether that tangible
15
personal property is purchased by the owner, operator, or
16
tenant of the data center or by a contractor or subcontractor
17
of the owner, operator, or tenant. Data centers that would
18
have qualified for a certificate of exemption prior to January
19
1, 2020 had Public Act 101-31 been in effect, may apply for and
20
obtain an exemption for subsequent purchases of computer
21
equipment or enabling software purchased or leased to upgrade,
22
supplement, or replace computer equipment or enabling software
23
purchased or leased in the original investment that would have
24
qualified.
25

The Department of Commerce and Economic Opportunity shall
26
grant a certificate of exemption under this item (32) to

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qualified data centers as defined by Section 605-1025 of the
2
Department of Commerce and Economic Opportunity Law of the
3
Civil Administrative Code of Illinois.
4

For the purposes of this item (32):
5

"Data center" means a building or a series of
6

buildings rehabilitated or constructed to house working
7

servers in one physical location or multiple sites within
8

the State of Illinois.
9

"Qualified tangible personal property" means:
10

electrical systems and equipment; climate control and
11

chilling equipment and systems; mechanical systems and
12

equipment; monitoring and secure systems; emergency
13

generators; hardware; computers; servers; data storage
14

devices; network connectivity equipment; racks; cabinets;
15

telecommunications cabling infrastructure; raised floor
16

systems; peripheral components or systems; software;
17

mechanical, electrical, or plumbing systems; battery
18

systems; cooling systems and towers; temperature control
19

systems; other cabling; and other data center
20

infrastructure equipment and systems necessary to operate
21

qualified tangible personal property, including fixtures;
22

and component parts of any of the foregoing, including
23

installation, maintenance, repair, refurbishment, and
24

replacement of qualified tangible personal property to
25

generate, transform, transmit, distribute, or manage
26

electricity necessary to operate qualified tangible

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personal property; and all other tangible personal
2

property that is essential to the operations of a computer
3

data center. The term "qualified tangible personal
4

property" also includes building materials physically
5

incorporated into the qualifying data center. To document
6

the exemption allowed under this Section, the retailer
7

must obtain from the purchaser a copy of the certificate
8

of eligibility issued by the Department of Commerce and
9

Economic Opportunity.
10

This item (32) is exempt from the provisions of Section
11
3-55.
12

(33) Beginning July 1, 2022, breast pumps, breast pump
13
collection and storage supplies, and breast pump kits. This
14
item (33) is exempt from the provisions of Section 3-55. As
15
used in this item (33):
16

"Breast pump" means an electrically controlled or
17

manually controlled pump device designed or marketed to be
18

used to express milk from a human breast during lactation,
19

including the pump device and any battery, AC adapter, or
20

other power supply unit that is used to power the pump
21

device and is packaged and sold with the pump device at the
22

time of sale.
23

"Breast pump collection and storage supplies" means
24

items of tangible personal property designed or marketed
25

to be used in conjunction with a breast pump to collect
26

milk expressed from a human breast and to store collected

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milk until it is ready for consumption.
2

"Breast pump collection and storage supplies"
3

includes, but is not limited to: breast shields and breast
4

shield connectors; breast pump tubes and tubing adapters;
5

breast pump valves and membranes; backflow protectors and
6

backflow protector adaptors; bottles and bottle caps
7

specific to the operation of the breast pump; and breast
8

milk storage bags.
9

"Breast pump collection and storage supplies" does not
10

include: (1) bottles and bottle caps not specific to the
11

operation of the breast pump; (2) breast pump travel bags
12

and other similar carrying accessories, including ice
13

packs, labels, and other similar products; (3) breast pump
14

cleaning supplies; (4) nursing bras, bra pads, breast
15

shells, and other similar products; and (5) creams,
16

ointments, and other similar products that relieve
17

breastfeeding-related symptoms or conditions of the
18

breasts or nipples, unless sold as part of a breast pump
19

kit that is pre-packaged by the breast pump manufacturer
20

or distributor.
21

"Breast pump kit" means a kit that: (1) contains no
22

more than a breast pump, breast pump collection and
23

storage supplies, a rechargeable battery for operating the
24

breast pump, a breastmilk cooler, bottle stands, ice
25

packs, and a breast pump carrying case; and (2) is
26

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

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manufacturer or distributor.
2

(34) Tangible personal property sold by or on behalf of
3
the State Treasurer pursuant to the Revised Uniform Unclaimed
4
Property Act. This item (34) is exempt from the provisions of
5
Section 3-55.
6

(35) Beginning on January 1, 2024, tangible personal
7
property purchased by an active duty member of the armed
8
forces of the United States who presents valid military
9
identification and purchases the property using a form of
10
payment where the federal government is the payor. The member
11
of the armed forces must complete, at the point of sale, a form
12
prescribed by the Department of Revenue documenting that the
13
transaction is eligible for the exemption under this
14
paragraph. Retailers must keep the form as documentation of
15
the exemption in their records for a period of not less than 6
16
years. "Armed forces of the United States" means the United
17
States Army, Navy, Air Force, Space Force, Marine Corps, or
18
Coast Guard. This paragraph is exempt from the provisions of
19
Section 3-55.
20

(36) Beginning July 1, 2024, home-delivered meals provided
21
to Medicare or Medicaid recipients when payment is made by an
22
intermediary, such as a Medicare Administrative Contractor, a
23
Managed Care Organization, or a Medicare Advantage
24
Organization, pursuant to a government contract. This
25
paragraph (36) is exempt from the provisions of Section 3-55.
26

(37) Beginning on January 1, 2026, as further defined in

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Section 3-10, food prepared for immediate consumption and
2
transferred incident to a sale of service subject to this Act
3
or the Service Use Tax Act by an entity licensed under the
4
Hospital Licensing Act, the Nursing Home Care Act, the
5
Assisted Living and Shared Housing Act, the ID/DD Community
6
Care Act, the MC/DD Act, the Specialized Mental Health
7
Rehabilitation Act of 2013, or the Child Care Act of 1969 or by
8
an entity that holds a permit issued pursuant to the Life Care
9
Facilities Act. This item (37) is exempt from the provisions
10
of Section 3-55.
11

(38) Beginning on January 1, 2026, as further defined in
12
Section 3-10, food for human consumption that is to be
13
consumed off the premises where it is sold (other than
14
alcoholic beverages, food consisting of or infused with adult
15
use cannabis, soft drinks, candy, and food that has been
16
prepared for immediate consumption). This item (38) is exempt
17
from the provisions of Section 3-55.
18

(39) The lease of the following tangible personal
19
property:
20

(1) computer software transferred subject to a license
21

that meets the following requirements:
22

(A) it is evidenced by a written agreement signed
23

by the licensor and the customer;
24

(i) an electronic agreement in which the
25

customer accepts the license by means of an
26

electronic signature that is verifiable and can be

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authenticated and is attached to or made part of
2

the license will comply with this requirement;
3

(ii) a license agreement in which the customer
4

electronically accepts the terms by clicking "I
5

agree" does not comply with this requirement;
6

(B) it restricts the customer's duplication and
7

use of the software;
8

(C) it prohibits the customer from licensing,
9

sublicensing, or transferring the software to a third
10

party (except to a related party) without the
11

permission and continued control of the licensor;
12

(D) the licensor has a policy of providing another
13

copy at minimal or no charge if the customer loses or
14

damages the software, or of permitting the licensee to
15

make and keep an archival copy, and such policy is
16

either stated in the license agreement, supported by
17

the licensor's books and records, or supported by a
18

notarized statement made under penalties of perjury by
19

the licensor; and
20

(E) the customer must destroy or return all copies
21

of the software to the licensor at the end of the
22

license period; this provision is deemed to be met, in
23

the case of a perpetual license, without being set
24

forth in the license agreement; and
25

(2) property that is subject to a tax on lease
26

receipts imposed by a home rule unit of local government

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if the ordinance imposing that tax was adopted prior to
2

January 1, 2023.
3
(Source: P.A. 103-9, Article 5, Section 5-15, eff. 6-7-23;
4
103-9, Article 15, Section 15-15, eff. 6-7-23; 103-154, eff.
5
6-30-23; 103-384, eff. 1-1-24; 103-592, eff. 1-1-25; 103-605,
6
eff. 7-1-24; 103-643, eff. 7-1-24; 103-746, eff. 1-1-25;
7
103-781, eff. 8-5-24; 103-995, eff. 8-9-24; 104-417, eff.
8
8-15-25.)

9

Section 20.
The Retailers' Occupation Tax Act is amended
10
by changing Section 2-5 as follows:

11

(35 ILCS 120/2-5)
12

Sec. 2-5.
Exemptions.
Gross receipts from proceeds from
13
the sale, which, on and after January 1, 2025, includes the
14
lease, of the following tangible personal property are exempt
15
from the tax imposed by this Act:
16

(1) Farm chemicals.
17

(2) Farm machinery and equipment, both new and used,
18

including that manufactured on special order, certified by
19

the purchaser to be used primarily for production
20

agriculture or State or federal agricultural programs,
21

including individual replacement parts for the machinery
22

and equipment, including machinery and equipment purchased
23

for lease, and including implements of husbandry defined
24

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

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machinery and agricultural chemical and fertilizer
2

spreaders, and nurse wagons required to be registered
3

under Section 3-809 of the Illinois Vehicle Code, but
4

excluding other motor vehicles required to be registered
5

under the Illinois Vehicle Code. Horticultural polyhouses
6

or hoop houses used for propagating, growing, or
7

overwintering plants shall be considered farm machinery
8

and equipment under this item (2). Agricultural chemical
9

tender tanks and dry boxes shall include units sold
10

separately from a motor vehicle required to be licensed
11

and units sold mounted on a motor vehicle required to be
12

licensed, if the selling price of the tender is separately
13

stated.
14

Farm machinery and equipment shall include precision
15

farming equipment that is installed or purchased to be
16

installed on farm machinery and equipment including, but
17

not limited to, tractors, harvesters, sprayers, planters,
18

seeders, or spreaders. Precision farming equipment
19

includes, but is not limited to, soil testing sensors,
20

computers, monitors, software, global positioning and
21

mapping systems, and other such equipment.
22

Farm machinery and equipment also includes computers,
23

sensors, software, and related equipment used primarily in
24

the computer-assisted operation of production agriculture
25

facilities, equipment, and activities such as, but not
26

limited to, the collection, monitoring, and correlation of

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animal and crop data for the purpose of formulating animal
2

diets and agricultural chemicals.
3

Beginning on January 1, 2024, farm machinery and
4

equipment also includes electrical power generation
5

equipment used primarily for production agriculture.
6

This item (2) is exempt from the provisions of Section
7

2-70.
8

(3) Until July 1, 2003, distillation machinery and
9

equipment, sold as a unit or kit, assembled or installed
10

by the retailer, certified by the user to be used only for
11

the production of ethyl alcohol that will be used for
12

consumption as motor fuel or as a component of motor fuel
13

for the personal use of the user, and not subject to sale
14

or resale.
15

(4) Until July 1, 2003 and beginning again September
16

1, 2004 through August 30, 2014, graphic arts machinery
17

and equipment, including repair and replacement parts,
18

both new and used, and including that manufactured on
19

special order or purchased for lease, certified by the
20

purchaser to be used primarily for graphic arts
21

production. Equipment includes chemicals or chemicals
22

acting as catalysts but only if the chemicals or chemicals
23

acting as catalysts effect a direct and immediate change
24

upon a graphic arts product. Beginning on July 1, 2017,
25

graphic arts machinery and equipment is included in the
26

manufacturing and assembling machinery and equipment

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exemption under paragraph (14).
2

(5) A motor vehicle that is used for automobile
3

renting, as defined in the Automobile Renting Occupation
4

and Use Tax Act. This paragraph is exempt from the
5

provisions of Section 2-70.
6

(6) Personal property sold by a teacher-sponsored
7

student organization affiliated with an elementary or
8

secondary school located in Illinois.
9

(7) Until July 1, 2003, proceeds of that portion of
10

the selling price of a passenger car the sale of which is
11

subject to the Replacement Vehicle Tax.
12

(8) Personal property sold to an Illinois county fair
13

association for use in conducting, operating, or promoting
14

the county fair.
15

(9) Personal property sold to a not-for-profit arts or
16

cultural organization that establishes, by proof required
17

by the Department by rule, that it has received an
18

exemption under Section 501(c)(3) of the Internal Revenue
19

Code and that is organized and operated primarily for the
20

presentation or support of arts or cultural programming,
21

activities, or services. These organizations include, but
22

are not limited to, music and dramatic arts organizations
23

such as symphony orchestras and theatrical groups, arts
24

and cultural service organizations, local arts councils,
25

visual arts organizations, and media arts organizations.
26

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

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92-35), however, an entity otherwise eligible for this
2

exemption shall not make tax-free purchases unless it has
3

an active identification number issued by the Department.
4

(10) Personal property sold by a corporation, society,
5

association, foundation, institution, or organization,
6

other than a limited liability company, that is organized
7

and operated as a not-for-profit service enterprise for
8

the benefit of persons 65 years of age or older if the
9

personal property was not purchased by the enterprise for
10

the purpose of resale by the enterprise.
11

(11) Except as otherwise provided in this Section,
12

personal property sold to a governmental body, to a
13

corporation, society, association, foundation, or
14

institution organized and operated exclusively for
15

charitable, religious, or educational purposes, or to a
16

not-for-profit corporation, society, association,
17

foundation, institution, or organization that has no
18

compensated officers or employees and that is organized
19

and operated primarily for the recreation of persons 55
20

years of age or older. A limited liability company may
21

qualify for the exemption under this paragraph only if the
22

limited liability company is organized and operated
23

exclusively for educational purposes. On and after July 1,
24

1987, however, no entity otherwise eligible for this
25

exemption shall make tax-free purchases unless it has an
26

active identification number issued by the Department.

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(12) (Blank).
2

(12-5) On and after July 1, 2003 and through June 30,
3

2004, motor vehicles of the second division with a gross
4

vehicle weight in excess of 8,000 pounds that are subject
5

to the commercial distribution fee imposed under Section
6

3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
7

2004 and through June 30, 2005, the use in this State of
8

motor vehicles of the second division: (i) with a gross
9

vehicle weight rating in excess of 8,000 pounds; (ii) that
10

are subject to the commercial distribution fee imposed
11

under Section 3-815.1 of the Illinois Vehicle Code; and
12

(iii) that are primarily used for commercial purposes.
13

Through June 30, 2005, this exemption applies to repair
14

and replacement parts added after the initial purchase of
15

such a motor vehicle if that motor vehicle is used in a
16

manner that would qualify for the rolling stock exemption
17

otherwise provided for in this Act. For purposes of this
18

paragraph, "used for commercial purposes" means the
19

transportation of persons or property in furtherance of
20

any commercial or industrial enterprise whether for-hire
21

or not.
22

(13) Proceeds from sales to owners or lessors,
23

lessees, or shippers of tangible personal property that is
24

utilized by interstate carriers for hire for use as
25

rolling stock moving in interstate commerce and equipment
26

operated by a telecommunications provider, licensed as a

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common carrier by the Federal Communications Commission,
2

which is permanently installed in or affixed to aircraft
3

moving in interstate commerce.
4

(14) Machinery and equipment that will be used by the
5

purchaser, or a lessee of the purchaser, primarily in the
6

process of manufacturing or assembling tangible personal
7

property for wholesale or retail sale or lease, whether
8

the sale or lease is made directly by the manufacturer or
9

by some other person, whether the materials used in the
10

process are owned by the manufacturer or some other
11

person, or whether the sale or lease is made apart from or
12

as an incident to the seller's engaging in the service
13

occupation of producing machines, tools, dies, jigs,
14

patterns, gauges, or other similar items of no commercial
15

value on special order for a particular purchaser. The
16

exemption provided by this paragraph (14) does not include
17

machinery and equipment used in (i) the generation of
18

electricity for wholesale or retail sale; (ii) the
19

generation or treatment of natural or artificial gas for
20

wholesale or retail sale that is delivered to customers
21

through pipes, pipelines, or mains; or (iii) the treatment
22

of water for wholesale or retail sale that is delivered to
23

customers through pipes, pipelines, or mains. The
24

provisions of Public Act 98-583 are declaratory of
25

existing law as to the meaning and scope of this
26

exemption. Beginning on July 1, 2017, the exemption

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provided by this paragraph (14) includes, but is not
2

limited to, graphic arts machinery and equipment, as
3

defined in paragraph (4) of this Section.
4

(15) Proceeds of mandatory service charges separately
5

stated on customers' bills for purchase and consumption of
6

food and beverages, to the extent that the proceeds of the
7

service charge are in fact turned over as tips or as a
8

substitute for tips to the employees who participate
9

directly in preparing, serving, hosting or cleaning up the
10

food or beverage function with respect to which the
11

service charge is imposed.
12

(16) Tangible personal property sold to a purchaser if
13

the purchaser is exempt from use tax by operation of
14

federal law. This paragraph is exempt from the provisions
15

of Section 2-70.
16

(17) Tangible personal property sold to a common
17

carrier by rail or motor that receives the physical
18

possession of the property in Illinois and that transports
19

the property, or shares with another common carrier in the
20

transportation of the property, out of Illinois on a
21

standard uniform bill of lading showing the seller of the
22

property as the shipper or consignor of the property to a
23

destination outside Illinois, for use outside Illinois.
24

(18) Legal tender, currency, medallions, or gold or
25

silver coinage issued by the State of Illinois, the
26

government of the United States of America, or the

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government of any foreign country, and bullion.
2

(19) Until July 1, 2003, oil field exploration,
3

drilling, and production equipment, including (i) rigs and
4

parts of rigs, rotary rigs, cable tool rigs, and workover
5

rigs, (ii) pipe and tubular goods, including casing and
6

drill strings, (iii) pumps and pump-jack units, (iv)
7

storage tanks and flow lines, (v) any individual
8

replacement part for oil field exploration, drilling, and
9

production equipment, and (vi) machinery and equipment
10

purchased for lease; but excluding motor vehicles required
11

to be registered under the Illinois Vehicle Code.
12

(20) Photoprocessing machinery and equipment,
13

including repair and replacement parts, both new and used,
14

including that manufactured on special order, certified by
15

the purchaser to be used primarily for photoprocessing,
16

and including photoprocessing machinery and equipment
17

purchased for lease.
18

(21) Until July 1, 2028, coal and aggregate
19

exploration, mining, off-highway hauling, processing,
20

maintenance, and reclamation equipment, including
21

replacement parts and equipment, and including equipment
22

purchased for lease, but excluding motor vehicles required
23

to be registered under the Illinois Vehicle Code. The
24

changes made to this Section by Public Act 97-767 apply on
25

and after July 1, 2003, but no claim for credit or refund
26

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

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of Public Act 98-456) for such taxes paid during the
2

period beginning July 1, 2003 and ending on August 16,
3

2013 (the effective date of Public Act 98-456).
4

(22) Until June 30, 2013, fuel and petroleum products
5

sold to or used by an air carrier, certified by the carrier
6

to be used for consumption, shipment, or storage in the
7

conduct of its business as an air common carrier, for a
8

flight destined for or returning from a location or
9

locations outside the United States without regard to
10

previous or subsequent domestic stopovers.
11

Beginning July 1, 2013, fuel and petroleum products
12

sold to or used by an air carrier, certified by the carrier
13

to be used for consumption, shipment, or storage in the
14

conduct of its business as an air common carrier, for a
15

flight that (i) is engaged in foreign trade or is engaged
16

in trade between the United States and any of its
17

possessions and (ii) transports at least one individual or
18

package for hire from the city of origination to the city
19

of final destination on the same aircraft, without regard
20

to a change in the flight number of that aircraft.
21

(23) A transaction in which the purchase order is
22

received by a florist who is located outside Illinois, but
23

who has a florist located in Illinois deliver the property
24

to the purchaser or the purchaser's donee in Illinois.
25

(24) Fuel consumed or used in the operation of ships,
26

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

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transportation of property or the conveyance of persons
2

for hire on rivers bordering on this State if the fuel is
3

delivered by the seller to the purchaser's barge, ship, or
4

vessel while it is afloat upon that bordering river.
5

(25) Except as provided in items (25-5) and (25-6) of
6

this Section, a motor vehicle sold in this State to a
7

nonresident even though the motor vehicle is delivered to
8

the nonresident in this State, if the motor vehicle is not
9

to be titled in this State, and if a drive-away permit is
10

issued to the motor vehicle as provided in Section 3-603
11

of the Illinois Vehicle Code or if the nonresident
12

purchaser has vehicle registration plates to transfer to
13

the motor vehicle upon returning to his or her home state.
14

The issuance of the drive-away permit or having the
15

out-of-state registration plates to be transferred is
16

prima facie evidence that the motor vehicle will not be
17

titled in this State.
18

(25-5) The exemption under item (25) does not apply if
19

the state in which the motor vehicle will be titled does
20

not allow a reciprocal exemption for a motor vehicle sold
21

and delivered in that state to an Illinois resident but
22

titled in Illinois. The tax collected under this Act on
23

the sale of a motor vehicle in this State to a resident of
24

another state that does not allow a reciprocal exemption
25

shall be imposed at a rate equal to the state's rate of tax
26

on taxable property in the state in which the purchaser is

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a resident, except that the tax shall not exceed the tax
2

that would otherwise be imposed under this Act. At the
3

time of the sale, the purchaser shall execute a statement,
4

signed under penalty of perjury, of his or her intent to
5

title the vehicle in the state in which the purchaser is a
6

resident within 30 days after the sale and of the fact of
7

the payment to the State of Illinois of tax in an amount
8

equivalent to the state's rate of tax on taxable property
9

in his or her state of residence and shall submit the
10

statement to the appropriate tax collection agency in his
11

or her state of residence. In addition, the retailer must
12

retain a signed copy of the statement in his or her
13

records. Nothing in this item shall be construed to
14

require the removal of the vehicle from this state
15

following the filing of an intent to title the vehicle in
16

the purchaser's state of residence if the purchaser titles
17

the vehicle in his or her state of residence within 30 days
18

after the date of sale. The tax collected under this Act in
19

accordance with this item (25-5) shall be proportionately
20

distributed as if the tax were collected at the 6.25%
21

general rate imposed under this Act.
22

(25-6) There is a rebuttable presumption that the
23

exemption under item (25) does not apply if the purchaser
24

is a limited liability company and a member of the limited
25

liability company is a resident of Illinois. This
26

presumption may be rebutted by other evidence, such as

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evidence the motor vehicle is insured at a garaging or
2

storage address outside Illinois or other evidence of the
3

physical address at which the motor vehicle will be
4

permanently stored or garaged outside Illinois.
5

(25-7) Beginning on July 1, 2007, no tax is imposed
6

under this Act on the sale of an aircraft, as defined in
7

Section 3 of the Illinois Aeronautics Act, if all of the
8

following conditions are met:
9

(1) the aircraft leaves this State within 15 days
10

after the later of either the issuance of the final
11

billing for the sale of the aircraft, or the
12

authorized approval for return to service, completion
13

of the maintenance record entry, and completion of the
14

test flight and ground test for inspection, as
15

required by 14 CFR 91.407;
16

(2) the aircraft is not based or registered in
17

this State after the sale of the aircraft; and
18

(3) the seller retains in his or her books and
19

records and provides to the Department a signed and
20

dated certification from the purchaser, on a form
21

prescribed by the Department, certifying that the
22

requirements of this item (25-7) are met. The
23

certificate must also include the name and address of
24

the purchaser, the address of the location where the
25

aircraft is to be titled or registered, the address of
26

the primary physical location of the aircraft, and

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other information that the Department may reasonably
2

require.
3

For purposes of this item (25-7):
4

"Based in this State" means hangared, stored, or
5

otherwise used, excluding post-sale customizations as
6

defined in this Section, for 10 or more days in each
7

12-month period immediately following the date of the sale
8

of the aircraft.
9

"Registered in this State" means an aircraft
10

registered with the Department of Transportation,
11

Aeronautics Division, or titled or registered with the
12

Federal Aviation Administration to an address located in
13

this State.
14

This paragraph (25-7) is exempt from the provisions of
15

Section 2-70.
16

(26) Semen used for artificial insemination of
17

livestock for direct agricultural production.
18

(27) Horses, or interests in horses, registered with
19

and meeting the requirements of any of the Arabian Horse
20

Club Registry of America, Appaloosa Horse Club, American
21

Quarter Horse Association, United States Trotting
22

Association, or Jockey Club, as appropriate, used for
23

purposes of breeding or racing for prizes. This item (27)
24

is exempt from the provisions of Section 2-70, and the
25

exemption provided for under this item (27) applies for
26

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

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credit or refund is allowed on or after January 1, 2008
2

(the effective date of Public Act 95-88) for such taxes
3

paid during the period beginning May 30, 2000 and ending
4

on January 1, 2008 (the effective date of Public Act
5

95-88).
6

(28) Computers and communications equipment utilized
7

for any hospital purpose and equipment used in the
8

diagnosis, analysis, or treatment of hospital patients
9

sold to a lessor who leases the equipment, under a lease of
10

one year or longer executed or in effect at the time of the
11

purchase, to a hospital that has been issued an active tax
12

exemption identification number by the Department under
13

Section 1g of this Act.
14

(29) Personal property sold to a lessor who leases the
15

property, under a lease of one year or longer executed or
16

in effect at the time of the purchase, to a governmental
17

body that has been issued an active tax exemption
18

identification number by the Department under Section 1g
19

of this Act.
20

(30) Beginning with taxable years ending on or after
21

December 31, 1995 and ending with taxable years ending on
22

or before December 31, 2004, personal property that is
23

donated for disaster relief to be used in a State or
24

federally declared disaster area in Illinois or bordering
25

Illinois by a manufacturer or retailer that is registered
26

in this State to a corporation, society, association,

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foundation, or institution that has been issued a sales
2

tax exemption identification number by the Department that
3

assists victims of the disaster who reside within the
4

declared disaster area.
5

(31) Beginning with taxable years ending on or after
6

December 31, 1995 and ending with taxable years ending on
7

or before December 31, 2004, personal property that is
8

used in the performance of infrastructure repairs in this
9

State, including, but not limited to, municipal roads and
10

streets, access roads, bridges, sidewalks, waste disposal
11

systems, water and sewer line extensions, water
12

distribution and purification facilities, storm water
13

drainage and retention facilities, and sewage treatment
14

facilities, resulting from a State or federally declared
15

disaster in Illinois or bordering Illinois when such
16

repairs are initiated on facilities located in the
17

declared disaster area within 6 months after the disaster.
18

(32) Beginning July 1, 1999, game or game birds sold
19

at a "game breeding and hunting preserve area" as that
20

term is used in the Wildlife Code. This paragraph is
21

exempt from the provisions of Section 2-70.
22

(33) A motor vehicle, as that term is defined in
23

Section 1-146 of the Illinois Vehicle Code, that is
24

donated to a corporation, limited liability company,
25

society, association, foundation, or institution that is
26

determined by the Department to be organized and operated

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exclusively for educational purposes. For purposes of this
2

exemption, "a corporation, limited liability company,
3

society, association, foundation, or institution organized
4

and operated exclusively for educational purposes" means
5

all tax-supported public schools, private schools that
6

offer systematic instruction in useful branches of
7

learning by methods common to public schools and that
8

compare favorably in their scope and intensity with the
9

course of study presented in tax-supported schools, and
10

vocational or technical schools or institutes organized
11

and operated exclusively to provide a course of study of
12

not less than 6 weeks duration and designed to prepare
13

individuals to follow a trade or to pursue a manual,
14

technical, mechanical, industrial, business, or commercial
15

occupation.
16

(34) Beginning January 1, 2000, personal property,
17

including food, purchased through fundraising events for
18

the benefit of a public or private elementary or secondary
19

school, a group of those schools, or one or more school
20

districts if the events are sponsored by an entity
21

recognized by the school district that consists primarily
22

of volunteers and includes parents and teachers of the
23

school children. This paragraph does not apply to
24

fundraising events (i) for the benefit of private home
25

instruction or (ii) for which the fundraising entity
26

purchases the personal property sold at the events from

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another individual or entity that sold the property for
2

the purpose of resale by the fundraising entity and that
3

profits from the sale to the fundraising entity. This
4

paragraph is exempt from the provisions of Section 2-70.
5

(35) Beginning January 1, 2000 and through December
6

31, 2001, new or used automatic vending machines that
7

prepare and serve hot food and beverages, including
8

coffee, soup, and other items, and replacement parts for
9

these machines. Beginning January 1, 2002 and through June
10

30, 2003, machines and parts for machines used in
11

commercial, coin-operated amusement and vending business
12

if a use or occupation tax is paid on the gross receipts
13

derived from the use of the commercial, coin-operated
14

amusement and vending machines. This paragraph is exempt
15

from the provisions of Section 2-70.
16

(35-5) Beginning August 23, 2001 and through June 30,
17

2016, food for human consumption that is to be consumed
18

off the premises where it is sold (other than alcoholic
19

beverages, soft drinks, and food that has been prepared
20

for immediate consumption) and prescription and
21

nonprescription medicines, drugs, medical appliances, and
22

insulin, urine testing materials, syringes, and needles
23

used by diabetics, for human use, when purchased for use
24

by a person receiving medical assistance under Article V
25

of the Illinois Public Aid Code who resides in a licensed
26

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

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Care Act, or a licensed facility as defined in the ID/DD
2

Community Care Act, the MC/DD Act, or the Specialized
3

Mental Health Rehabilitation Act of 2013.
4

(36) Beginning August 2, 2001, computers and
5

communications equipment utilized for any hospital purpose
6

and equipment used in the diagnosis, analysis, or
7

treatment of hospital patients sold to a lessor who leases
8

the equipment, under a lease of one year or longer
9

executed or in effect at the time of the purchase, to a
10

hospital that has been issued an active tax exemption
11

identification number by the Department under Section 1g
12

of this Act. This paragraph is exempt from the provisions
13

of Section 2-70.
14

(37) Beginning August 2, 2001, personal property sold
15

to a lessor who leases the property, under a lease of one
16

year or longer executed or in effect at the time of the
17

purchase, to a governmental body that has been issued an
18

active tax exemption identification number by the
19

Department under Section 1g of this Act. This paragraph is
20

exempt from the provisions of Section 2-70.
21

(38) Beginning on January 1, 2002 and through June 30,
22

2016,
and beginning again on July 1, 2026 and through June
23

30, 2031,
tangible personal property purchased
from an
24

Illinois retailer
by a taxpayer engaged in centralized
25

purchasing activities in Illinois who will, upon receipt
26

of the property in Illinois, temporarily store the

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property in Illinois (i) for the purpose of subsequently
2

transporting it outside this State for use or consumption
3

thereafter solely outside this State or (ii) for the
4

purpose of being processed, fabricated, or manufactured
5

into, attached to, or incorporated into other tangible
6

personal property to be transported outside this State and
7

thereafter used or consumed solely outside this State. The
8

Director of Revenue shall, pursuant to rules adopted in
9

accordance with the Illinois Administrative Procedure Act,
10

issue a permit to any taxpayer in good standing with the
11

Department who is eligible for the exemption under this
12

paragraph (38). The permit issued under this paragraph
13

(38) shall authorize the holder, to the extent and in the
14

manner specified in the rules adopted under this Act, to
15

purchase tangible personal property from a retailer exempt
16

from the taxes imposed by this Act. Taxpayers shall
17

maintain all necessary books and records to substantiate
18

the use and consumption of all such tangible personal
19

property outside of the State of Illinois.
20

(39) Beginning January 1, 2008, tangible personal
21

property used in the construction or maintenance of a
22

community water supply, as defined under Section 3.145 of
23

the Environmental Protection Act, that is operated by a
24

not-for-profit corporation that holds a valid water supply
25

permit issued under Title IV of the Environmental
26

Protection Act. This paragraph is exempt from the

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provisions of Section 2-70.
2

(40) Beginning January 1, 2010 and continuing through
3

December 31, 2029, materials, parts, equipment,
4

components, and furnishings incorporated into or upon an
5

aircraft as part of the modification, refurbishment,
6

completion, replacement, repair, or maintenance of the
7

aircraft. This exemption includes consumable supplies used
8

in the modification, refurbishment, completion,
9

replacement, repair, and maintenance of aircraft. However,
10

until January 1, 2024, this exemption excludes any
11

materials, parts, equipment, components, and consumable
12

supplies used in the modification, replacement, repair,
13

and maintenance of aircraft engines or power plants,
14

whether such engines or power plants are installed or
15

uninstalled upon any such aircraft. "Consumable supplies"
16

include, but are not limited to, adhesive, tape,
17

sandpaper, general purpose lubricants, cleaning solution,
18

latex gloves, and protective films.
19

Beginning January 1, 2010 and continuing through
20

December 31, 2023, this exemption applies only to the sale
21

of qualifying tangible personal property to persons who
22

modify, refurbish, complete, replace, or maintain an
23

aircraft and who (i) hold an Air Agency Certificate and
24

are empowered to operate an approved repair station by the
25

Federal Aviation Administration, (ii) have a Class IV
26

Rating, and (iii) conduct operations in accordance with

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Part 145 of the Federal Aviation Regulations. The
2

exemption does not include aircraft operated by a
3

commercial air carrier providing scheduled passenger air
4

service pursuant to authority issued under Part 121 or
5

Part 129 of the Federal Aviation Regulations. From January
6

1, 2024 through December 31, 2029, this exemption applies
7

only to the sale of qualifying tangible personal property
8

to: (A) persons who modify, refurbish, complete, repair,
9

replace, or maintain aircraft and who (i) hold an Air
10

Agency Certificate and are empowered to operate an
11

approved repair station by the Federal Aviation
12

Administration, (ii) have a Class IV Rating, and (iii)
13

conduct operations in accordance with Part 145 of the
14

Federal Aviation Regulations; and (B) persons who engage
15

in the modification, replacement, repair, and maintenance
16

of aircraft engines or power plants without regard to
17

whether or not those persons meet the qualifications of
18

item (A).
19

The changes made to this paragraph (40) by Public Act
20

98-534 are declarative of existing law. It is the intent
21

of the General Assembly that the exemption under this
22

paragraph (40) applies continuously from January 1, 2010
23

through December 31, 2024; however, no claim for credit or
24

refund is allowed for taxes paid as a result of the
25

disallowance of this exemption on or after January 1, 2015
26

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

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Public Act 101-629).
2

(41) Tangible personal property sold to a
3

public-facilities corporation, as described in Section
4

11-65-10 of the Illinois Municipal Code, for purposes of
5

constructing or furnishing a municipal convention hall,
6

but only if the legal title to the municipal convention
7

hall is transferred to the municipality without any
8

further consideration by or on behalf of the municipality
9

at the time of the completion of the municipal convention
10

hall or upon the retirement or redemption of any bonds or
11

other debt instruments issued by the public-facilities
12

corporation in connection with the development of the
13

municipal convention hall. This exemption includes
14

existing public-facilities corporations as provided in
15

Section 11-65-25 of the Illinois Municipal Code. This
16

paragraph is exempt from the provisions of Section 2-70.
17

(42) Beginning January 1, 2017 and through December
18

31, 2026, menstrual pads, tampons, and menstrual cups.
19

(43) Merchandise that is subject to the Rental
20

Purchase Agreement Occupation and Use Tax. The purchaser
21

must certify that the item is purchased to be rented
22

subject to a rental-purchase agreement, as defined in the
23

Rental-Purchase Agreement Act, and provide proof of
24

registration under the Rental Purchase Agreement
25

Occupation and Use Tax Act. This paragraph is exempt from
26

the provisions of Section 2-70.

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(44) Qualified tangible personal property used in the
2

construction or operation of a data center that has been
3

granted a certificate of exemption by the Department of
4

Commerce and Economic Opportunity, whether that tangible
5

personal property is purchased by the owner, operator, or
6

tenant of the data center or by a contractor or
7

subcontractor of the owner, operator, or tenant. Data
8

centers that would have qualified for a certificate of
9

exemption prior to January 1, 2020 had Public Act 101-31
10

been in effect, may apply for and obtain an exemption for
11

subsequent purchases of computer equipment or enabling
12

software purchased or leased to upgrade, supplement, or
13

replace computer equipment or enabling software purchased
14

or leased in the original investment that would have
15

qualified.
16

The Department of Commerce and Economic Opportunity
17

shall grant a certificate of exemption under this item
18

(44) to qualified data centers as defined by Section
19

605-1025 of the Department of Commerce and Economic
20

Opportunity Law of the Civil Administrative Code of
21

Illinois.
22

For the purposes of this item (44):
23

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

buildings rehabilitated or constructed to house
25

working servers in one physical location or multiple
26

sites within 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;
7

cabinets; telecommunications cabling infrastructure;
8

raised floor systems; peripheral components or
9

systems; software; mechanical, electrical, or plumbing
10

systems; battery systems; cooling systems and towers;
11

temperature control systems; other cabling; and other
12

data center infrastructure equipment and systems
13

necessary to operate qualified tangible personal
14

property, including fixtures; and component parts of
15

any of the foregoing, including installation,
16

maintenance, repair, refurbishment, and replacement of
17

qualified tangible personal property to generate,
18

transform, transmit, distribute, or manage electricity
19

necessary to operate qualified tangible personal
20

property; and all other tangible personal property
21

that is essential to the operations of a computer data
22

center. The term "qualified tangible personal
23

property" also includes building materials physically
24

incorporated into the qualifying data center. To
25

document the exemption allowed under this Section, the
26

retailer must obtain from the purchaser a copy of the

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1

certificate of eligibility issued by the Department of
2

Commerce and Economic Opportunity.
3

This item (44) is exempt from the provisions of
4

Section 2-70.
5

(45) Beginning January 1, 2020 and through December
6

31, 2020, sales of tangible personal property made by a
7

marketplace seller over a marketplace for which tax is due
8

under this Act but for which use tax has been collected and
9

remitted to the Department by a marketplace facilitator
10

under Section 2d of the Use Tax Act are exempt from tax
11

under this Act. A marketplace seller claiming this
12

exemption shall maintain books and records demonstrating
13

that the use tax on such sales has been collected and
14

remitted by a marketplace facilitator. Marketplace sellers
15

that have properly remitted tax under this Act on such
16

sales may file a claim for credit as provided in Section 6
17

of this Act. No claim is allowed, however, for such taxes
18

for which a credit or refund has been issued to the
19

marketplace facilitator under the Use Tax Act, or for
20

which the marketplace facilitator has filed a claim for
21

credit or refund under the Use Tax Act.
22

(46) Beginning July 1, 2022, breast pumps, breast pump
23

collection and storage supplies, and breast pump kits.
24

This item (46) is exempt from the provisions of Section
25

2-70. As used in this item (46):
26

"Breast pump" means an electrically controlled or

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1

manually controlled pump device designed or marketed to be
2

used to express milk from a human breast during lactation,
3

including the pump device and any battery, AC adapter, or
4

other power supply unit that is used to power the pump
5

device and is packaged and sold with the pump device at the
6

time of sale.
7

"Breast pump collection and storage supplies" means
8

items of tangible personal property designed or marketed
9

to be used in conjunction with a breast pump to collect
10

milk expressed from a human breast and to store collected
11

milk until it is ready for consumption.
12

"Breast pump collection and storage supplies"
13

includes, but is not limited to: breast shields and breast
14

shield connectors; breast pump tubes and tubing adapters;
15

breast pump valves and membranes; backflow protectors and
16

backflow protector adaptors; bottles and bottle caps
17

specific to the operation of the breast pump; and breast
18

milk storage bags.
19

"Breast pump collection and storage supplies" does not
20

include: (1) bottles and bottle caps not specific to the
21

operation of the breast pump; (2) breast pump travel bags
22

and other similar carrying accessories, including ice
23

packs, labels, and other similar products; (3) breast pump
24

cleaning supplies; (4) nursing bras, bra pads, breast
25

shells, and other similar products; and (5) creams,
26

ointments, and other similar products that relieve

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breastfeeding-related symptoms or conditions of the
2

breasts or nipples, unless sold as part of a breast pump
3

kit that is pre-packaged by the breast pump manufacturer
4

or distributor.
5

"Breast pump kit" means a kit that: (1) contains no
6

more than a breast pump, breast pump collection and
7

storage supplies, a rechargeable battery for operating the
8

breast pump, a breastmilk cooler, bottle stands, ice
9

packs, and a breast pump carrying case; and (2) is
10

pre-packaged as a breast pump kit by the breast pump
11

manufacturer or distributor.
12

(47) Tangible personal property sold by or on behalf
13

of the State Treasurer pursuant to the Revised Uniform
14

Unclaimed Property Act. This item (47) is exempt from the
15

provisions of Section 2-70.
16

(48) Beginning on January 1, 2024, tangible personal
17

property purchased by an active duty member of the armed
18

forces of the United States who presents valid military
19

identification and purchases the property using a form of
20

payment where the federal government is the payor. The
21

member of the armed forces must complete, at the point of
22

sale, a form prescribed by the Department of Revenue
23

documenting that the transaction is eligible for the
24

exemption under this paragraph. Retailers must keep the
25

form as documentation of the exemption in their records
26

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

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United States" means the United States Army, Navy, Air
2

Force, Space Force, Marine Corps, or Coast Guard. This
3

paragraph is exempt from the provisions of Section 2-70.
4

(49) Beginning July 1, 2024, home-delivered meals
5

provided to Medicare or Medicaid recipients when payment
6

is made by an intermediary, such as a Medicare
7

Administrative Contractor, a Managed Care Organization, or
8

a Medicare Advantage Organization, pursuant to a
9

government contract. This paragraph (49) is exempt from
10

the provisions of Section 2-70.
11

(50) Beginning on January 1, 2026, as further defined
12

in Section 2-10, food for human consumption that is to be
13

consumed off the premises where it is sold (other than
14

alcoholic beverages, food consisting of or infused with
15

adult use cannabis, soft drinks, candy, and food that has
16

been prepared for immediate consumption). This item (50)
17

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

(51) Gross receipts from the lease of the following
19

tangible personal property:
20

(1) computer software transferred subject to a
21

license that meets the following requirements:
22

(A) it is evidenced by a written agreement
23

signed by the licensor and the customer;
24

(i) an electronic agreement in which the
25

customer accepts the license by means of an
26

electronic signature that is verifiable and

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can be authenticated and is attached to or
2

made part of the license will comply with this
3

requirement;
4

(ii) a license agreement in which the
5

customer electronically accepts the terms by
6

clicking "I agree" does not comply with this
7

requirement;
8

(B) it restricts the customer's duplication
9

and use of the software;
10

(C) it prohibits the customer from licensing,
11

sublicensing, or transferring the software to a
12

third party (except to a related party) without
13

the permission and continued control of the
14

licensor;
15

(D) the licensor has a policy of providing
16

another copy at minimal or no charge if the
17

customer loses or damages the software, or of
18

permitting the licensee to make and keep an
19

archival copy, and such policy is either stated in
20

the license agreement, supported by the licensor's
21

books and records, or supported by a notarized
22

statement made under penalties of perjury by the
23

licensor; and
24

(E) the customer must destroy or return all
25

copies of the software to the licensor at the end
26

of the license period; this provision is deemed to

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1

be met, in the case of a perpetual license,
2

without being set forth in the license agreement;
3

and
4

(2) property that is subject to a tax on lease
5

receipts imposed by a home rule unit of local
6

government if the ordinance imposing that tax was
7

adopted prior to January 1, 2023.
8
(Source: P.A. 103-9, Article 5, Section 5-20, eff. 6-7-23;
9
103-9, Article 15, Section 15-20, eff. 6-7-23; 103-154, eff.
10
6-30-23; 103-384, eff. 1-1-24; 103-592, eff. 1-1-25; 103-605,
11
eff. 7-1-24; 103-643, eff. 7-1-24; 103-746, eff. 1-1-25;
12
103-781, eff. 8-5-24; 103-995, eff. 8-9-24; 104-6, eff.
13
6-16-25; 104-417, eff. 8-15-25.)

14

Section 99.
Effective date.
This Act takes effect upon
15
becoming law.

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