USE/OCC TAX-DIAPERS

Illinois General Assembly - Full Text of SB3869

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3869

Introduced 2/6/2026, by Sen. John F. Curran

SYNOPSIS AS INTRODUCED:

35 ILCS 105/3-5
35 ILCS 110/3-5
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. Provides that
diapers for use by infants, children, or adults are exempt from the taxes
under the Acts. Effective immediately.
LRB104 18266 HLH 31705 b

A BILL FOR

SB3869
LRB104 18266 HLH 31705 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
3-5 as follows:

6

(35 ILCS 105/3-5)
7

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

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

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

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

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

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

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

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

(7) Farm chemicals.
18

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

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

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

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Act.
2

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

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

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

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

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

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

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

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

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

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

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

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

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LRB104 18266 HLH 31705 b
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to be used primarily for photoprocessing, and including
2
photoprocessing machinery and equipment purchased for lease.
3

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

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

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

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LRB104 18266 HLH 31705 b
1
an incident to the seller's engaging in the service occupation
2
of producing machines, tools, dies, jigs, patterns, gauges, or
3
other similar items of no commercial value on special order
4
for a particular purchaser. The exemption provided by this
5
paragraph (18) includes production related tangible personal
6
property, as defined in Section 3-50, purchased on or after
7
July 1, 2019. The exemption provided by this paragraph (18)
8
does not include machinery and equipment used in (i) the
9
generation of electricity for wholesale or retail sale; (ii)
10
the generation or treatment of natural or artificial gas for
11
wholesale or retail sale that is delivered to customers
12
through pipes, pipelines, or mains; or (iii) the treatment of
13
water for wholesale or retail sale that is delivered to
14
customers through pipes, pipelines, or mains. The provisions
15
of Public Act 98-583 are declaratory of existing law as to the
16
meaning and scope of this exemption. Beginning on July 1,
17
2017, the exemption provided by this paragraph (18) includes,
18
but is not limited to, graphic arts machinery and equipment,
19
as defined in paragraph (6) of this Section.
20

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

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

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

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

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

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

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

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

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

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1

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

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

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

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LRB104 18266 HLH 31705 b
1
a group of those schools, or one or more school districts if
2
the events are sponsored by an entity recognized by the school
3
district that consists primarily of volunteers and includes
4
parents and teachers of the school children. This paragraph
5
does not apply to fundraising events (i) for the benefit of
6
private home instruction or (ii) for which the fundraising
7
entity purchases the personal property sold at the events from
8
another individual or entity that sold the property for the
9
purpose of resale by the fundraising entity and that profits
10
from the sale to the fundraising entity. This paragraph is
11
exempt from the provisions of Section 3-90.
12

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

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

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

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

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LRB104 18266 HLH 31705 b
1
tax has not been paid by the lessor. If a lessor improperly
2
collects any such amount from the lessee, the lessee shall
3
have a legal right to claim a refund of that amount from the
4
lessor. If, however, that amount is not refunded to the lessee
5
for any reason, the lessor is liable to pay that amount to the
6
Department. This paragraph is exempt from the provisions of
7
Section 3-90.
8

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

For the purposes of this item (40):
23

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

buildings rehabilitated or constructed to house working
25

servers in one physical location or multiple sites within
26

the State of Illinois.

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"Qualified tangible personal property" means:
2

electrical systems and equipment; climate control and
3

chilling equipment and systems; mechanical systems and
4

equipment; monitoring and secure systems; emergency
5

generators; hardware; computers; servers; data storage
6

devices; network connectivity equipment; racks; cabinets;
7

telecommunications cabling infrastructure; raised floor
8

systems; peripheral components or systems; software;
9

mechanical, electrical, or plumbing systems; battery
10

systems; cooling systems and towers; temperature control
11

systems; other cabling; and other data center
12

infrastructure equipment and systems necessary to operate
13

qualified tangible personal property, including fixtures;
14

and component parts of any of the foregoing, including
15

installation, maintenance, repair, refurbishment, and
16

replacement of qualified tangible personal property to
17

generate, transform, transmit, distribute, or manage
18

electricity necessary to operate qualified tangible
19

personal property; and all other tangible personal
20

property that is essential to the operations of a computer
21

data center. The term "qualified tangible personal
22

property" also includes building materials physically
23

incorporated into the qualifying data center. To document
24

the exemption allowed under this Section, the retailer
25

must obtain from the purchaser a copy of the certificate
26

of eligibility issued by the Department of Commerce and

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Economic Opportunity.
2

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

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

"Breast pump" means an electrically controlled or
9

manually controlled pump device designed or marketed to be
10

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

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

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

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

time of sale.
15

"Breast pump collection and storage supplies" means
16

items of tangible personal property designed or marketed
17

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

milk expressed from a human breast and to store collected
19

milk until it is ready for consumption.
20

"Breast pump collection and storage supplies"
21

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

shield connectors; breast pump tubes and tubing adapters;
23

breast pump valves and membranes; backflow protectors and
24

backflow protector adaptors; bottles and bottle caps
25

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

milk storage bags.

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"Breast pump collection and storage supplies" does not
2

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

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

and other similar carrying accessories, including ice
5

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

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

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

ointments, and other similar products that relieve
9

breastfeeding-related symptoms or conditions of the
10

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

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

or distributor.
13

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

more than a breast pump, breast pump collection and
15

storage supplies, a rechargeable battery for operating the
16

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

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

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

manufacturer or distributor.
20

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

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

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

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

(45) Beginning on January 1, 2026, as further defined in
19
Section 3-10, food for human consumption that is to be
20
consumed off the premises where it is sold (other than
21
alcoholic beverages, food consisting of or infused with adult
22
use cannabis, soft drinks, candy, and food that has been
23
prepared for immediate consumption). This item (45) is exempt
24
from the provisions of Section 3-90.
25

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

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(1) software transferred subject to a license that
2

meets the following requirements:
3

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

by the licensor and the customer;
5

(i) an electronic agreement in which the
6

customer accepts the license by means of an
7

electronic signature that is verifiable and can be
8

authenticated and is attached to or made part of
9

the license will comply with this requirement;
10

(ii) a license agreement in which the customer
11

electronically accepts the terms by clicking "I
12

agree" does not comply with this requirement;
13

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

use of the software;
15

(C) it prohibits the customer from licensing,
16

sublicensing, or transferring the software to a third
17

party (except to a related party) without the
18

permission and continued control of the licensor;
19

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

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

damages the software, or of permitting the licensee to
22

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

either stated in the license agreement, supported by
24

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

notarized statement made under penalties of perjury by
26

the licensor; and

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

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

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

the case of a perpetual license, without being set
5

forth in the license agreement; and
6

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

receipts imposed by a home rule unit of local government
8

if the ordinance imposing that tax was adopted prior to
9

January 1, 2023.
10

(47) On and after January 1, 2027, diapers for use by
11
infants, children, or adults. This paragraph is exempt from
12
the provisions of Section 3-90.

13
(Source: P.A. 103-9, Article 5, Section 5-5, eff. 6-7-23;
14
103-9, Article 15, Section 15-5, eff. 6-7-23; 103-154, eff.
15
6-30-23; 103-384, eff. 1-1-24; 103-592, eff. 1-1-25; 103-605,
16
eff. 7-1-24; 103-643, eff. 7-1-24; 103-746, eff. 1-1-25;
17
103-781, eff. 8-5-24; 104-417, eff. 8-15-25.)

18

Section 10.
The Service Use Tax Act is amended by changing
19
Section 3-5 as follows:

20

(35 ILCS 110/3-5)
21

Sec. 3-5.
Exemptions.
Use of the following tangible
22
personal property is exempt from the tax imposed by this Act:
23

(1) Personal property purchased from a corporation,
24
society, association, foundation, institution, or

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organization, other than a limited liability company, that is
2
organized and operated as a not-for-profit service enterprise
3
for the benefit of persons 65 years of age or older if the
4
personal property was not purchased by the enterprise for the
5
purpose of resale by the enterprise.
6

(2) Personal property purchased by a non-profit Illinois
7
county fair association for use in conducting, operating, or
8
promoting the county fair.
9

(3) Personal property purchased by a not-for-profit arts
10
or cultural organization that establishes, by proof required
11
by the Department by rule, that it has received an exemption
12
under Section 501(c)(3) of the Internal Revenue Code and that
13
is organized and operated primarily for the presentation or
14
support of arts or cultural programming, activities, or
15
services. These organizations include, but are not limited to,
16
music and dramatic arts organizations such as symphony
17
orchestras and theatrical groups, arts and cultural service
18
organizations, local arts councils, visual arts organizations,
19
and media arts organizations. On and after July 1, 2001 (the
20
effective date of Public Act 92-35), however, an entity
21
otherwise eligible for this exemption shall not make tax-free
22
purchases unless it has an active identification number issued
23
by the Department.
24

(4) Legal tender, currency, medallions, or gold or silver
25
coinage issued by the State of Illinois, the government of the
26
United States of America, or the government of any foreign

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country, and bullion.
2

(5) Until July 1, 2003 and beginning again on September 1,
3
2004 through August 30, 2014, graphic arts machinery and
4
equipment, including repair and replacement parts, both new
5
and used, and including that manufactured on special order or
6
purchased for lease, certified by the purchaser to be used
7
primarily for graphic arts production. Equipment includes
8
chemicals or chemicals acting as catalysts but only if the
9
chemicals or chemicals acting as catalysts effect a direct and
10
immediate change upon a graphic arts product. Beginning on
11
July 1, 2017, graphic arts machinery and equipment is included
12
in the manufacturing and assembling machinery and equipment
13
exemption under Section 2 of this Act.
14

(6) Personal property purchased from a teacher-sponsored
15
student organization affiliated with an elementary or
16
secondary school located in Illinois.
17

(7) Farm machinery and equipment, both new and used,
18
including that manufactured on special order, certified by the
19
purchaser to be used primarily for production agriculture or
20
State or federal agricultural programs, including individual
21
replacement parts for the machinery and equipment, including
22
machinery and equipment purchased for lease, and including
23
implements of husbandry defined in Section 1-130 of the
24
Illinois Vehicle Code, farm machinery and agricultural
25
chemical and fertilizer spreaders, and nurse wagons required
26
to be registered under Section 3-809 of the Illinois Vehicle

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Code, but excluding other motor vehicles required to be
2
registered under the Illinois Vehicle Code. Horticultural
3
polyhouses or hoop houses used for propagating, growing, or
4
overwintering plants shall be considered farm machinery and
5
equipment under this item (7). Agricultural chemical tender
6
tanks and dry boxes shall include units sold separately from a
7
motor vehicle required to be licensed and units sold mounted
8
on a motor vehicle required to be licensed if the selling price
9
of the tender is separately stated.
10

Farm machinery and equipment shall include precision
11
farming equipment that is installed or purchased to be
12
installed on farm machinery and equipment, including, but not
13
limited to, tractors, harvesters, sprayers, planters, seeders,
14
or spreaders. Precision farming equipment includes, but is not
15
limited to, soil testing sensors, computers, monitors,
16
software, global positioning and mapping systems, and other
17
such equipment.
18

Farm machinery and equipment also includes computers,
19
sensors, software, and related equipment used primarily in the
20
computer-assisted operation of production agriculture
21
facilities, equipment, and activities such as, but not limited
22
to, the collection, monitoring, and correlation of animal and
23
crop data for the purpose of formulating animal diets and
24
agricultural chemicals.
25

Beginning on January 1, 2024, farm machinery and equipment
26
also includes electrical power generation equipment used

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primarily for production agriculture.
2

This item (7) is exempt from the provisions of Section
3
3-75.
4

(8) Until June 30, 2013, fuel and petroleum products sold
5
to or used by an air common 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 flight
8
destined for or returning from a location or locations outside
9
the United States without regard to previous or subsequent
10
domestic stopovers.
11

Beginning July 1, 2013, fuel and petroleum products sold
12
to or used by an air carrier, certified by the carrier to be
13
used for consumption, shipment, or storage in the conduct of
14
its business as an air common carrier, for a flight that (i) is
15
engaged in foreign trade or is engaged in trade between the
16
United States and any of its possessions and (ii) transports
17
at least one individual or package for hire from the city of
18
origination to the city of final destination on the same
19
aircraft, without regard to a change in the flight number of
20
that aircraft.
21

(9) Proceeds of mandatory service charges separately
22
stated on customers' bills for the purchase and consumption of
23
food and beverages acquired as an incident to the purchase of a
24
service from a serviceman, to the extent that the proceeds of
25
the service charge are in fact turned over as tips or as a
26
substitute for tips to the employees who participate directly

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in preparing, serving, hosting or cleaning up the food or
2
beverage function with respect to which the service charge is
3
imposed.
4

(10) Until July 1, 2003, oil field exploration, drilling,
5
and production equipment, including (i) rigs and parts of
6
rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
7
pipe and tubular goods, including casing and drill strings,
8
(iii) pumps and pump-jack units, (iv) storage tanks and flow
9
lines, (v) any individual replacement part for oil field
10
exploration, drilling, and production equipment, and (vi)
11
machinery and equipment purchased for lease; but excluding
12
motor vehicles required to be registered under the Illinois
13
Vehicle Code.
14

(11) Proceeds from the sale of photoprocessing machinery
15
and equipment, including repair and replacement parts, both
16
new and used, including that manufactured on special order,
17
certified by the purchaser to be used primarily for
18
photoprocessing, and including photoprocessing machinery and
19
equipment purchased for lease.
20

(12) Until July 1, 2028, coal and aggregate exploration,
21
mining, off-highway hauling, processing, maintenance, and
22
reclamation equipment, including replacement parts and
23
equipment, and including equipment purchased for lease, but
24
excluding motor vehicles required to be registered under the
25
Illinois Vehicle Code. The changes made to this Section by
26
Public Act 97-767 apply on and after July 1, 2003, but no claim

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for credit or refund is allowed on or after August 16, 2013
2
(the effective date of Public Act 98-456) for such taxes paid
3
during the period beginning July 1, 2003 and ending on August
4
16, 2013 (the effective date of Public Act 98-456).
5

(13) Semen used for artificial insemination of livestock
6
for direct agricultural production.
7

(14) Horses, or interests in horses, registered with and
8
meeting the requirements of any of the Arabian Horse Club
9
Registry of America, Appaloosa Horse Club, American Quarter
10
Horse Association, United States Trotting Association, or
11
Jockey Club, as appropriate, used for purposes of breeding or
12
racing for prizes. This item (14) is exempt from the
13
provisions of Section 3-75, and the exemption provided for
14
under this item (14) applies for all periods beginning May 30,
15
1995, but no claim for credit or refund is allowed on or after
16
January 1, 2008 (the effective date of Public Act 95-88) for
17
such taxes paid during the period beginning May 30, 2000 and
18
ending on January 1, 2008 (the effective date of Public Act
19
95-88).
20

(15) Computers and communications equipment utilized for
21
any hospital purpose and equipment used in the diagnosis,
22
analysis, or treatment of hospital patients purchased by a
23
lessor who leases the equipment, under a lease of one year or
24
longer executed or in effect at the time the lessor would
25
otherwise be subject to the tax imposed by this Act, to a
26
hospital that has been issued an active tax exemption

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identification number by the Department under Section 1g of
2
the Retailers' Occupation Tax Act. If the equipment is leased
3
in a manner that does not qualify for this exemption or is used
4
in any other non-exempt manner, the lessor shall be liable for
5
the tax imposed under this Act or the Use Tax Act, as the case
6
may be, based on the fair market value of the property at the
7
time the non-qualifying use occurs. No lessor shall collect or
8
attempt to collect an amount (however designated) that
9
purports to reimburse that lessor for the tax imposed by this
10
Act or the Use Tax Act, as the case may be, if the tax has not
11
been paid by the lessor. If a lessor improperly collects any
12
such amount from the lessee, the lessee shall have a legal
13
right to claim a refund of that amount from the lessor. If,
14
however, that amount is not refunded to the lessee for any
15
reason, the lessor is liable to pay that amount to the
16
Department.
17

(16) Personal property purchased by a lessor who leases
18
the property, under a lease of one year or longer executed or
19
in effect at the time the lessor would otherwise be subject to
20
the tax imposed by this Act, to a governmental body that has
21
been issued an active tax exemption identification number by
22
the Department under Section 1g of the Retailers' Occupation
23
Tax Act. If the property is leased in a manner that does not
24
qualify for this exemption or is used in any other non-exempt
25
manner, the lessor shall be liable for the tax imposed under
26
this Act or the Use Tax Act, as the case may be, based on the

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

(17) Beginning with taxable years ending on or after
12
December 31, 1995 and ending with taxable years ending on or
13
before December 31, 2004, personal property that is donated
14
for disaster relief to be used in a State or federally declared
15
disaster area in Illinois or bordering Illinois by a
16
manufacturer or retailer that is registered in this State to a
17
corporation, society, association, foundation, or institution
18
that has been issued a sales tax exemption identification
19
number by the Department that assists victims of the disaster
20
who reside within the declared disaster area.
21

(18) Beginning with taxable years ending on or after
22
December 31, 1995 and ending with taxable years ending on or
23
before December 31, 2004, personal property that is used in
24
the performance of infrastructure repairs in this State,
25
including, but not limited to, municipal roads and streets,
26
access roads, bridges, sidewalks, waste disposal systems,

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water and sewer line extensions, water distribution and
2
purification facilities, storm water drainage and retention
3
facilities, and sewage treatment facilities, resulting from a
4
State or federally declared disaster in Illinois or bordering
5
Illinois when such repairs are initiated on facilities located
6
in the declared disaster area within 6 months after the
7
disaster.
8

(19) Beginning July 1, 1999, game or game birds purchased
9
at a "game breeding and hunting preserve area" as that term is
10
used in the Wildlife Code. This paragraph is exempt from the
11
provisions of Section 3-75.
12

(20) A motor vehicle, as that term is defined in Section
13
1-146 of the Illinois Vehicle Code, that is donated to a
14
corporation, limited liability company, society, association,
15
foundation, or institution that is determined by the
16
Department to be organized and operated exclusively for
17
educational purposes. For purposes of this exemption, "a
18
corporation, limited liability company, society, association,
19
foundation, or institution organized and operated exclusively
20
for educational purposes" means all tax-supported public
21
schools, private schools that offer systematic instruction in
22
useful branches of learning by methods common to public
23
schools and that compare favorably in their scope and
24
intensity with the course of study presented in tax-supported
25
schools, and vocational or technical schools or institutes
26
organized and operated exclusively to provide a course of

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study of not less than 6 weeks duration and designed to prepare
2
individuals to follow a trade or to pursue a manual,
3
technical, mechanical, industrial, business, or commercial
4
occupation.
5

(21) Beginning January 1, 2000, personal property,
6
including food, purchased through fundraising events for the
7
benefit of a public or private elementary or secondary school,
8
a group of those schools, or one or more school districts if
9
the events are sponsored by an entity recognized by the school
10
district that consists primarily of volunteers and includes
11
parents and teachers of the school children. This paragraph
12
does not apply to fundraising events (i) for the benefit of
13
private home instruction or (ii) for which the fundraising
14
entity purchases the personal property sold at the events from
15
another individual or entity that sold the property for the
16
purpose of resale by the fundraising entity and that profits
17
from the sale to the fundraising entity. This paragraph is
18
exempt from the provisions of Section 3-75.
19

(22) Beginning January 1, 2000 and through December 31,
20
2001, new or used automatic vending machines that prepare and
21
serve hot food and beverages, including coffee, soup, and
22
other items, and replacement parts for these machines.
23
Beginning January 1, 2002 and through June 30, 2003, machines
24
and parts for machines used in commercial, coin-operated
25
amusement and vending business if a use or occupation tax is
26
paid on the gross receipts derived from the use of the

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commercial, coin-operated amusement and vending machines. This
2
paragraph is exempt from the provisions of Section 3-75.
3

(23) Beginning August 23, 2001 and through June 30, 2016,
4
food for human consumption that is to be consumed off the
5
premises where it is sold (other than alcoholic beverages,
6
soft drinks, and food that has been prepared for immediate
7
consumption) and prescription and nonprescription medicines,
8
drugs, medical appliances, and insulin, urine testing
9
materials, syringes, and needles used by diabetics, for human
10
use, when purchased for use by a person receiving medical
11
assistance under Article V of the Illinois Public Aid Code who
12
resides in a licensed long-term care facility, as defined in
13
the Nursing Home Care Act, or in a licensed facility as defined
14
in the ID/DD Community Care Act, the MC/DD Act, or the
15
Specialized Mental Health Rehabilitation Act of 2013.
16

(24) Beginning on August 2, 2001 (the effective date of
17
Public Act 92-227), computers and communications equipment
18
utilized for any hospital purpose and equipment used in the
19
diagnosis, analysis, or treatment of hospital patients
20
purchased by a lessor who leases the equipment, under a lease
21
of one year or longer executed or in effect at the time the
22
lessor would otherwise be subject to the tax imposed by this
23
Act, to a hospital that has been issued an active tax exemption
24
identification number by the Department under Section 1g of
25
the Retailers' Occupation Tax Act. If the equipment is leased
26
in a manner that does not qualify for this exemption or is used

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in any other nonexempt manner, the lessor shall be liable for
2
the tax imposed under this Act or the Use Tax Act, as the case
3
may be, based on the fair market value of the property at the
4
time the nonqualifying use occurs. No lessor shall collect or
5
attempt to collect an amount (however designated) that
6
purports to reimburse that lessor for the tax imposed by this
7
Act or the Use Tax Act, as the case may be, if the tax has not
8
been paid by the lessor. If a lessor improperly collects any
9
such amount from the lessee, the lessee shall have a legal
10
right to claim a refund of that amount from the lessor. If,
11
however, that amount is not refunded to the lessee for any
12
reason, the lessor is liable to pay that amount to the
13
Department. This paragraph is exempt from the provisions of
14
Section 3-75.
15

(25) Beginning on August 2, 2001 (the effective date of
16
Public Act 92-227), personal property purchased by a lessor
17
who leases the property, under a lease of one year or longer
18
executed or in effect at the time the lessor would otherwise be
19
subject to the tax imposed by this Act, to a governmental body
20
that has been issued an active tax exemption identification
21
number by the Department under Section 1g of the Retailers'
22
Occupation Tax Act. If the property is leased in a manner that
23
does not qualify for this exemption or is used in any other
24
nonexempt manner, the lessor shall be liable for the tax
25
imposed under this Act or the Use Tax Act, as the case may be,
26
based on the fair market value of the property at the time the

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nonqualifying use occurs. No lessor shall collect or attempt
2
to collect an amount (however designated) that purports to
3
reimburse that lessor for the tax imposed by this Act or the
4
Use Tax Act, as the case may be, if the tax has not been paid
5
by the lessor. If a lessor improperly collects any such amount
6
from the lessee, the lessee shall have a legal right to claim a
7
refund of that amount from the lessor. If, however, that
8
amount is not refunded to the lessee for any reason, the lessor
9
is liable to pay that amount to the Department. This paragraph
10
is exempt from the provisions of Section 3-75.
11

(26) Beginning January 1, 2008, tangible personal property
12
used in the construction or maintenance of a community water
13
supply, as defined under Section 3.145 of the Environmental
14
Protection Act, that is operated by a not-for-profit
15
corporation that holds a valid water supply permit issued
16
under Title IV of the Environmental Protection Act. This
17
paragraph is exempt from the provisions of Section 3-75.
18

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

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components, and consumable supplies used in the modification,
2
replacement, repair, and maintenance of aircraft engines or
3
power plants, whether such engines or power plants are
4
installed or uninstalled upon any such aircraft. "Consumable
5
supplies" include, but are not limited to, adhesive, tape,
6
sandpaper, general purpose lubricants, cleaning solution,
7
latex gloves, and protective films.
8

Beginning January 1, 2010 and continuing through December
9
31, 2023, this exemption applies only to the use of qualifying
10
tangible personal property transferred incident to the
11
modification, refurbishment, completion, replacement, repair,
12
or maintenance of aircraft by persons who (i) hold an Air
13
Agency Certificate and are empowered to operate an approved
14
repair station by the Federal Aviation Administration, (ii)
15
have a Class IV Rating, and (iii) conduct operations in
16
accordance with Part 145 of the Federal Aviation Regulations.
17
From January 1, 2024 through December 31, 2029, this exemption
18
applies only to the use of qualifying tangible personal
19
property transferred incident to: (A) the modification,
20
refurbishment, completion, repair, replacement, or maintenance
21
of an aircraft by persons who (i) hold an Air Agency
22
Certificate and are empowered to operate an approved repair
23
station by the Federal Aviation Administration, (ii) have a
24
Class IV Rating, and (iii) conduct operations in accordance
25
with Part 145 of the Federal Aviation Regulations; and (B) the
26
modification, replacement, repair, and maintenance of aircraft

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engines or power plants without regard to whether or not those
2
persons meet the qualifications of item (A).
3

The exemption does not include aircraft operated by a
4
commercial air carrier providing scheduled passenger air
5
service pursuant to authority issued under Part 121 or Part
6
129 of the Federal Aviation Regulations. The changes made to
7
this paragraph (27) by Public Act 98-534 are declarative of
8
existing law. It is the intent of the General Assembly that the
9
exemption under this paragraph (27) applies continuously from
10
January 1, 2010 through December 31, 2024; however, no claim
11
for credit or refund is allowed for taxes paid as a result of
12
the disallowance of this exemption on or after January 1, 2015
13
and prior to February 5, 2020 (the effective date of Public Act
14
101-629).
15

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

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corporations as provided in Section 11-65-25 of the Illinois
2
Municipal Code. This paragraph is exempt from the provisions
3
of Section 3-75.
4

(29) Beginning January 1, 2017 and through December 31,
5
2026, menstrual pads, tampons, and menstrual cups.
6

(30) Tangible personal property transferred to a purchaser
7
who is exempt from the tax imposed by this Act by operation of
8
federal law. This paragraph is exempt from the provisions of
9
Section 3-75.
10

(31) Qualified tangible personal property used in the
11
construction or operation of a data center that has been
12
granted a certificate of exemption by the Department of
13
Commerce and Economic Opportunity, whether that tangible
14
personal property is purchased by the owner, operator, or
15
tenant of the data center or by a contractor or subcontractor
16
of the owner, operator, or tenant. Data centers that would
17
have qualified for a certificate of exemption prior to January
18
1, 2020 had Public Act 101-31 been in effect, may apply for and
19
obtain an exemption for subsequent purchases of computer
20
equipment or enabling software purchased or leased to upgrade,
21
supplement, or replace computer equipment or enabling software
22
purchased or leased in the original investment that would have
23
qualified.
24

The Department of Commerce and Economic Opportunity shall
25
grant a certificate of exemption under this item (31) to
26
qualified data centers as defined by Section 605-1025 of the

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Department of Commerce and Economic Opportunity Law of the
2
Civil Administrative Code of Illinois.
3

For the purposes of this item (31):
4

"Data center" means a building or a series of
5

buildings rehabilitated or constructed to house working
6

servers in one physical location or multiple sites within
7

the State of Illinois.
8

"Qualified tangible personal property" means:
9

electrical systems and equipment; climate control and
10

chilling equipment and systems; mechanical systems and
11

equipment; monitoring and secure systems; emergency
12

generators; hardware; computers; servers; data storage
13

devices; network connectivity equipment; racks; cabinets;
14

telecommunications cabling infrastructure; raised floor
15

systems; peripheral components or systems; software;
16

mechanical, electrical, or plumbing systems; battery
17

systems; cooling systems and towers; temperature control
18

systems; other cabling; and other data center
19

infrastructure equipment and systems necessary to operate
20

qualified tangible personal property, including fixtures;
21

and component parts of any of the foregoing, including
22

installation, maintenance, repair, refurbishment, and
23

replacement of qualified tangible personal property to
24

generate, transform, transmit, distribute, or manage
25

electricity necessary to operate qualified tangible
26

personal property; and all other tangible personal

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property that is essential to the operations of a computer
2

data center. The term "qualified tangible personal
3

property" also includes building materials physically
4

incorporated into the qualifying data center. To document
5

the exemption allowed under this Section, the retailer
6

must obtain from the purchaser a copy of the certificate
7

of eligibility issued by the Department of Commerce and
8

Economic Opportunity.
9

This item (31) is exempt from the provisions of Section
10
3-75.
11

(32) Beginning July 1, 2022, breast pumps, breast pump
12
collection and storage supplies, and breast pump kits. This
13
item (32) is exempt from the provisions of Section 3-75. As
14
used in this item (32):
15

"Breast pump" means an electrically controlled or
16

manually controlled pump device designed or marketed to be
17

used to express milk from a human breast during lactation,
18

including the pump device and any battery, AC adapter, or
19

other power supply unit that is used to power the pump
20

device and is packaged and sold with the pump device at the
21

time of sale.
22

"Breast pump collection and storage supplies" means
23

items of tangible personal property designed or marketed
24

to be used in conjunction with a breast pump to collect
25

milk expressed from a human breast and to store collected
26

milk until it is ready for consumption.

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"Breast pump collection and storage supplies"
2

includes, but is not limited to: breast shields and breast
3

shield connectors; breast pump tubes and tubing adapters;
4

breast pump valves and membranes; backflow protectors and
5

backflow protector adaptors; bottles and bottle caps
6

specific to the operation of the breast pump; and breast
7

milk storage bags.
8

"Breast pump collection and storage supplies" does not
9

include: (1) bottles and bottle caps not specific to the
10

operation of the breast pump; (2) breast pump travel bags
11

and other similar carrying accessories, including ice
12

packs, labels, and other similar products; (3) breast pump
13

cleaning supplies; (4) nursing bras, bra pads, breast
14

shells, and other similar products; and (5) creams,
15

ointments, and other similar products that relieve
16

breastfeeding-related symptoms or conditions of the
17

breasts or nipples, unless sold as part of a breast pump
18

kit that is pre-packaged by the breast pump manufacturer
19

or distributor.
20

"Breast pump kit" means a kit that: (1) contains no
21

more than a breast pump, breast pump collection and
22

storage supplies, a rechargeable battery for operating the
23

breast pump, a breastmilk cooler, bottle stands, ice
24

packs, and a breast pump carrying case; and (2) is
25

pre-packaged as a breast pump kit by the breast pump
26

manufacturer or distributor.

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(33) Tangible personal property sold by or on behalf of
2
the State Treasurer pursuant to the Revised Uniform Unclaimed
3
Property Act. This item (33) is exempt from the provisions of
4
Section 3-75.
5

(34) Beginning on January 1, 2024, tangible personal
6
property purchased by an active duty member of the armed
7
forces of the United States who presents valid military
8
identification and purchases the property using a form of
9
payment where the federal government is the payor. The member
10
of the armed forces must complete, at the point of sale, a form
11
prescribed by the Department of Revenue documenting that the
12
transaction is eligible for the exemption under this
13
paragraph. Retailers must keep the form as documentation of
14
the exemption in their records for a period of not less than 6
15
years. "Armed forces of the United States" means the United
16
States Army, Navy, Air Force, Space Force, Marine Corps, or
17
Coast Guard. This paragraph is exempt from the provisions of
18
Section 3-75.
19

(35) Beginning July 1, 2024, home-delivered meals provided
20
to Medicare or Medicaid recipients when payment is made by an
21
intermediary, such as a Medicare Administrative Contractor, a
22
Managed Care Organization, or a Medicare Advantage
23
Organization, pursuant to a government contract. This
24
paragraph (35) is exempt from the provisions of Section 3-75.
25

(36) Beginning on January 1, 2026, as further defined in
26
Section 3-10, food prepared for immediate consumption and

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transferred incident to a sale of service subject to this Act
2
or the Service Occupation Tax Act by an entity licensed under
3
the Hospital Licensing Act, the Nursing Home Care Act, the
4
Assisted Living and Shared Housing Act, the ID/DD Community
5
Care Act, the MC/DD Act, the Specialized Mental Health
6
Rehabilitation Act of 2013, or the Child Care Act of 1969 or by
7
an entity that holds a permit issued pursuant to the Life Care
8
Facilities Act. This item (36) is exempt from the provisions
9
of Section 3-75.
10

(37) Beginning on January 1, 2026, as further defined in
11
Section 3-10, food for human consumption that is to be
12
consumed off the premises where it is sold (other than
13
alcoholic beverages, food consisting of or infused with adult
14
use cannabis, soft drinks, candy, and food that has been
15
prepared for immediate consumption). This item (37) is exempt
16
from the provisions of Section 3-75.
17

(38) Use by a lessee of the following leased tangible
18
personal property:
19

(1) software transferred subject to a license that
20

meets the following requirements:
21

(A) it is evidenced by a written agreement signed
22

by the licensor and the customer;
23

(i) an electronic agreement in which the
24

customer accepts the license by means of an
25

electronic signature that is verifiable and can be
26

authenticated and is attached to or made part of

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the license will comply with this requirement;
2

(ii) a license agreement in which the customer
3

electronically accepts the terms by clicking "I
4

agree" does not comply with this requirement;
5

(B) it restricts the customer's duplication and
6

use of the software;
7

(C) it prohibits the customer from licensing,
8

sublicensing, or transferring the software to a third
9

party (except to a related party) without the
10

permission and continued control of the licensor;
11

(D) the licensor has a policy of providing another
12

copy at minimal or no charge if the customer loses or
13

damages the software, or of permitting the licensee to
14

make and keep an archival copy, and such policy is
15

either stated in the license agreement, supported by
16

the licensor's books and records, or supported by a
17

notarized statement made under penalties of perjury by
18

the licensor; and
19

(E) the customer must destroy or return all copies
20

of the software to the licensor at the end of the
21

license period; this provision is deemed to be met, in
22

the case of a perpetual license, without being set
23

forth in the license agreement; and
24

(2) property that is subject to a tax on lease
25

receipts imposed by a home rule unit of local government
26

if the ordinance imposing that tax was adopted prior to

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January 1, 2023.
2

(39) On and after January 1, 2027, diapers for use by
3
infants, children, or adults. This paragraph is exempt from
4
the provisions of Section 3-75.

5
(Source: P.A. 103-9, Article 5, Section 5-10, eff. 6-7-23;
6
103-9, Article 15, Section 15-10, eff. 6-7-23; 103-154, eff.
7
6-30-23; 103-384, eff. 1-1-24; 103-592, eff. 1-1-25; 103-605,
8
eff. 7-1-24; 103-643, eff. 7-1-24; 103-746, eff. 1-1-25;
9
103-781, eff. 8-5-24; 103-995, eff. 8-9-24; 104-417, eff.
10
8-15-25.)

11

Section 15.
The Service Occupation Tax Act is amended by
12
changing Section 3-5 as follows:

13

(35 ILCS 115/3-5)
14

Sec. 3-5.
Exemptions.
The following tangible personal
15
property is exempt from the tax imposed by this Act:
16

(1) Personal property sold by a corporation, society,
17
association, foundation, institution, or organization, other
18
than a limited liability company, that is organized and
19
operated as a not-for-profit service enterprise for the
20
benefit of persons 65 years of age or older if the personal
21
property was not purchased by the enterprise for the purpose
22
of resale by the enterprise.
23

(2) Personal property purchased by a not-for-profit
24
Illinois county fair association for use in conducting,

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operating, or promoting the county fair.
2

(3) Personal property purchased by any not-for-profit arts
3
or cultural organization that establishes, by proof required
4
by the Department by rule, that it has received an exemption
5
under Section 501(c)(3) of the Internal Revenue Code and that
6
is organized and operated primarily for the presentation or
7
support of arts or cultural programming, activities, or
8
services. These organizations include, but are not limited to,
9
music and dramatic arts organizations such as symphony
10
orchestras and theatrical groups, arts and cultural service
11
organizations, local arts councils, visual arts organizations,
12
and media arts organizations. On and after July 1, 2001 (the
13
effective date of Public Act 92-35), however, an entity
14
otherwise eligible for this exemption shall not make tax-free
15
purchases unless it has an active identification number issued
16
by the Department.
17

(4) Legal tender, currency, medallions, or gold or silver
18
coinage issued by the State of Illinois, the government of the
19
United States of America, or the government of any foreign
20
country, and bullion.
21

(5) Until July 1, 2003 and beginning again on September 1,
22
2004 through August 30, 2014, graphic arts machinery and
23
equipment, including repair and replacement parts, both new
24
and used, and including that manufactured on special order or
25
purchased for lease, certified by the purchaser to be used
26
primarily for graphic arts production. Equipment includes

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chemicals or chemicals acting as catalysts but only if the
2
chemicals or chemicals acting as catalysts effect a direct and
3
immediate change upon a graphic arts product. Beginning on
4
July 1, 2017, graphic arts machinery and equipment is included
5
in the manufacturing and assembling machinery and equipment
6
exemption under Section 2 of this Act.
7

(6) Personal property sold by a teacher-sponsored student
8
organization affiliated with an elementary or secondary school
9
located in Illinois.
10

(7) Farm machinery and equipment, both new and used,
11
including that manufactured on special order, certified by the
12
purchaser to be used primarily for production agriculture or
13
State or federal agricultural programs, including individual
14
replacement parts for the machinery and equipment, including
15
machinery and equipment purchased for lease, and including
16
implements of husbandry defined in Section 1-130 of the
17
Illinois Vehicle Code, farm machinery and agricultural
18
chemical and fertilizer spreaders, and nurse wagons required
19
to be registered under Section 3-809 of the Illinois Vehicle
20
Code, but excluding other motor vehicles required to be
21
registered under the Illinois Vehicle Code. Horticultural
22
polyhouses or hoop houses used for propagating, growing, or
23
overwintering plants shall be considered farm machinery and
24
equipment under this item (7). Agricultural chemical tender
25
tanks and dry boxes shall include units sold separately from a
26
motor vehicle required to be licensed and units sold mounted

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on a motor vehicle required to be licensed if the selling price
2
of the tender is separately stated.
3

Farm machinery and equipment shall include precision
4
farming equipment that is installed or purchased to be
5
installed on farm machinery and equipment, including, but not
6
limited to, tractors, harvesters, sprayers, planters, seeders,
7
or spreaders. Precision farming equipment includes, but is not
8
limited to, soil testing sensors, computers, monitors,
9
software, global positioning and mapping systems, and other
10
such equipment.
11

Farm machinery and equipment also includes computers,
12
sensors, software, and related equipment used primarily in the
13
computer-assisted operation of production agriculture
14
facilities, equipment, and activities such as, but not limited
15
to, the collection, monitoring, and correlation of animal and
16
crop data for the purpose of formulating animal diets and
17
agricultural chemicals.
18

Beginning on January 1, 2024, farm machinery and equipment
19
also includes electrical power generation equipment used
20
primarily for production agriculture.
21

This item (7) is exempt from the provisions of Section
22
3-55.
23

(8) Until June 30, 2013, fuel and petroleum products sold
24
to or used by an air common carrier, certified by the carrier
25
to be used for consumption, shipment, or storage in the
26
conduct of its business as an air common carrier, for a flight

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destined for or returning from a location or locations outside
2
the United States without regard to previous or subsequent
3
domestic stopovers.
4

Beginning July 1, 2013, fuel and petroleum products sold
5
to or used by an air carrier, certified by the carrier to be
6
used for consumption, shipment, or storage in the conduct of
7
its business as an air common carrier, for a flight that (i) is
8
engaged in foreign trade or is engaged in trade between the
9
United States and any of its possessions and (ii) transports
10
at least one individual or package for hire from the city of
11
origination to the city of final destination on the same
12
aircraft, without regard to a change in the flight number of
13
that aircraft.
14

(9) Proceeds of mandatory service charges separately
15
stated on customers' bills for the purchase and consumption of
16
food and beverages, to the extent that the proceeds of the
17
service charge are in fact turned over as tips or as a
18
substitute for tips to the employees who participate directly
19
in preparing, serving, hosting or cleaning up the food or
20
beverage function with respect to which the service charge is
21
imposed.
22

(10) Until July 1, 2003, oil field exploration, drilling,
23
and production equipment, including (i) rigs and parts of
24
rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
25
pipe and tubular goods, including casing and drill strings,
26
(iii) pumps and pump-jack units, (iv) storage tanks and flow

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lines, (v) any individual replacement part for oil field
2
exploration, drilling, and production equipment, and (vi)
3
machinery and equipment purchased for lease; but excluding
4
motor vehicles required to be registered under the Illinois
5
Vehicle Code.
6

(11) Photoprocessing machinery and equipment, including
7
repair and replacement parts, both new and used, including
8
that manufactured on special order, certified by the purchaser
9
to be used primarily for photoprocessing, and including
10
photoprocessing machinery and equipment purchased for lease.
11

(12) Until July 1, 2028, coal and aggregate exploration,
12
mining, off-highway hauling, processing, maintenance, and
13
reclamation equipment, including replacement parts and
14
equipment, and including equipment purchased for lease, but
15
excluding motor vehicles required to be registered under the
16
Illinois Vehicle Code. The changes made to this Section by
17
Public Act 97-767 apply on and after July 1, 2003, but no claim
18
for credit or refund is allowed on or after August 16, 2013
19
(the effective date of Public Act 98-456) for such taxes paid
20
during the period beginning July 1, 2003 and ending on August
21
16, 2013 (the effective date of Public Act 98-456).
22

(13) Beginning January 1, 1992 and through June 30, 2016,
23
food for human consumption that is to be consumed off the
24
premises where it is sold (other than alcoholic beverages,
25
soft drinks and food that has been prepared for immediate
26
consumption) and prescription and non-prescription medicines,

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

(14) Semen used for artificial insemination of livestock
10
for direct agricultural production.
11

(15) Horses, or interests in horses, registered with and
12
meeting the requirements of any of the Arabian Horse Club
13
Registry of America, Appaloosa Horse Club, American Quarter
14
Horse Association, United States Trotting Association, or
15
Jockey Club, as appropriate, used for purposes of breeding or
16
racing for prizes. This item (15) is exempt from the
17
provisions of Section 3-55, and the exemption provided for
18
under this item (15) applies for all periods beginning May 30,
19
1995, but no claim for credit or refund is allowed on or after
20
January 1, 2008 (the effective date of Public Act 95-88) for
21
such taxes paid during the period beginning May 30, 2000 and
22
ending on January 1, 2008 (the effective date of Public Act
23
95-88).
24

(16) Computers and communications equipment utilized for
25
any hospital purpose and equipment used in the diagnosis,
26
analysis, or treatment of hospital patients sold to a lessor

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

(17) Personal property sold to a lessor who leases the
7
property, under a lease of one year or longer executed or in
8
effect at the time of the purchase, to a governmental body that
9
has been issued an active tax exemption identification number
10
by the Department under Section 1g of the Retailers'
11
Occupation Tax Act.
12

(18) Beginning with taxable years ending on or after
13
December 31, 1995 and ending with taxable years ending on or
14
before December 31, 2004, personal property that is donated
15
for disaster relief to be used in a State or federally declared
16
disaster area in Illinois or bordering Illinois by a
17
manufacturer or retailer that is registered in this State to a
18
corporation, society, association, foundation, or institution
19
that has been issued a sales tax exemption identification
20
number by the Department that assists victims of the disaster
21
who reside within the declared disaster area.
22

(19) Beginning with taxable years ending on or after
23
December 31, 1995 and ending with taxable years ending on or
24
before December 31, 2004, personal property that is used in
25
the performance of infrastructure repairs in this State,
26
including, but not limited to, municipal roads and streets,

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access roads, bridges, sidewalks, waste disposal systems,
2
water and sewer line extensions, water distribution and
3
purification facilities, storm water drainage and retention
4
facilities, and sewage treatment facilities, resulting from a
5
State or federally declared disaster in Illinois or bordering
6
Illinois when such repairs are initiated on facilities located
7
in the declared disaster area within 6 months after the
8
disaster.
9

(20) Beginning July 1, 1999, game or game birds sold at a
10
"game breeding and hunting preserve area" as that term is used
11
in the Wildlife Code. This paragraph is exempt from the
12
provisions of Section 3-55.
13

(21) A motor vehicle, as that term is defined in Section
14
1-146 of the Illinois Vehicle Code, that is donated to a
15
corporation, limited liability company, society, association,
16
foundation, or institution that is determined by the
17
Department to be organized and operated exclusively for
18
educational purposes. For purposes of this exemption, "a
19
corporation, limited liability company, society, association,
20
foundation, or institution organized and operated exclusively
21
for educational purposes" means all tax-supported public
22
schools, private schools that offer systematic instruction in
23
useful branches of learning by methods common to public
24
schools and that compare favorably in their scope and
25
intensity with the course of study presented in tax-supported
26
schools, and vocational or technical schools or institutes

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organized and operated exclusively to provide a course of
2
study of not less than 6 weeks duration and designed to prepare
3
individuals to follow a trade or to pursue a manual,
4
technical, mechanical, industrial, business, or commercial
5
occupation.
6

(22) Beginning January 1, 2000, personal property,
7
including food, purchased through fundraising events for the
8
benefit of a public or private elementary or secondary school,
9
a group of those schools, or one or more school districts if
10
the events are sponsored by an entity recognized by the school
11
district that consists primarily of volunteers and includes
12
parents and teachers of the school children. This paragraph
13
does not apply to fundraising events (i) for the benefit of
14
private home instruction or (ii) for which the fundraising
15
entity purchases the personal property sold at the events from
16
another individual or entity that sold the property for the
17
purpose of resale by the fundraising entity and that profits
18
from the sale to the fundraising entity. This paragraph is
19
exempt from the provisions of Section 3-55.
20

(23) Beginning January 1, 2000 and through December 31,
21
2001, new or used automatic vending machines that prepare and
22
serve hot food and beverages, including coffee, soup, and
23
other items, and replacement parts for these machines.
24
Beginning January 1, 2002 and through June 30, 2003, machines
25
and parts for machines used in commercial, coin-operated
26
amusement and vending business if a use or occupation tax is

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paid on the gross receipts derived from the use of the
2
commercial, coin-operated amusement and vending machines. This
3
paragraph is exempt from the provisions of Section 3-55.
4

(24) Beginning on August 2, 2001 (the effective date of
5
Public Act 92-227), computers and communications equipment
6
utilized for any hospital purpose and equipment used in the
7
diagnosis, analysis, or treatment of hospital patients sold to
8
a lessor who leases the equipment, under a lease of one year or
9
longer 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 of
12
the Retailers' Occupation Tax Act. This paragraph is exempt
13
from the provisions of Section 3-55.
14

(25) Beginning on August 2, 2001 (the effective date of
15
Public Act 92-227), personal property sold to a lessor who
16
leases the property, under a lease of one year or longer
17
executed or in effect at the time of the purchase, to a
18
governmental body that has been issued an active tax exemption
19
identification number by the Department under Section 1g of
20
the Retailers' Occupation Tax Act. This paragraph is exempt
21
from the provisions of Section 3-55.
22

(26) Beginning on January 1, 2002 and through June 30,
23
2016, tangible personal property purchased from an Illinois
24
retailer by a taxpayer engaged in centralized purchasing
25
activities in Illinois who will, upon receipt of the property
26
in Illinois, temporarily store the property in Illinois (i)

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for the purpose of subsequently transporting it outside this
2
State for use or consumption thereafter solely outside this
3
State or (ii) for the purpose of being processed, fabricated,
4
or manufactured into, attached to, or incorporated into other
5
tangible personal property to be transported outside this
6
State and thereafter used or consumed solely outside this
7
State. The Director of Revenue shall, pursuant to rules
8
adopted in accordance with the Illinois Administrative
9
Procedure Act, issue a permit to any taxpayer in good standing
10
with the Department who is eligible for the exemption under
11
this paragraph (26). The permit issued under this paragraph
12
(26) shall authorize the holder, to the extent and in the
13
manner specified in the rules adopted under this Act, to
14
purchase tangible personal property from a retailer exempt
15
from the taxes imposed by this Act. Taxpayers shall maintain
16
all necessary books and records to substantiate the use and
17
consumption of all such tangible personal property outside of
18
the State of Illinois.
19

(27) Beginning January 1, 2008, tangible personal property
20
used in the construction or maintenance of a community water
21
supply, as defined under Section 3.145 of the Environmental
22
Protection Act, that is operated by a not-for-profit
23
corporation that holds a valid water supply permit issued
24
under Title IV of the Environmental Protection Act. This
25
paragraph is exempt from the provisions of Section 3-55.
26

(28) Tangible personal property sold to a

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public-facilities corporation, as described in Section
2
11-65-10 of the Illinois Municipal Code, for purposes of
3
constructing or furnishing a municipal convention hall, but
4
only if the legal title to the municipal convention hall is
5
transferred to the municipality without any further
6
consideration by or on behalf of the municipality at the time
7
of the completion of the municipal convention hall or upon the
8
retirement or redemption of any bonds or other debt
9
instruments issued by the public-facilities corporation in
10
connection with the development of the municipal convention
11
hall. This exemption includes existing public-facilities
12
corporations as provided in Section 11-65-25 of the Illinois
13
Municipal Code. This paragraph is exempt from the provisions
14
of Section 3-55.
15

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

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installed or uninstalled upon any such aircraft. "Consumable
2
supplies" include, but are not limited to, adhesive, tape,
3
sandpaper, general purpose lubricants, cleaning solution,
4
latex gloves, and protective films.
5

Beginning January 1, 2010 and continuing through December
6
31, 2023, this exemption applies only to the transfer of
7
qualifying tangible personal property incident to the
8
modification, refurbishment, completion, replacement, repair,
9
or maintenance of an aircraft by persons who (i) hold an Air
10
Agency Certificate and are empowered to operate an approved
11
repair station by the Federal Aviation Administration, (ii)
12
have a Class IV Rating, and (iii) conduct operations in
13
accordance with Part 145 of the Federal Aviation Regulations.
14
The exemption does not include aircraft operated by a
15
commercial air carrier providing scheduled passenger air
16
service pursuant to authority issued under Part 121 or Part
17
129 of the Federal Aviation Regulations. From January 1, 2024
18
through December 31, 2029, this exemption applies only to the
19
transfer of qualifying tangible personal property incident to:
20
(A) the modification, refurbishment, completion, repair,
21
replacement, or maintenance of an aircraft by persons who (i)
22
hold an Air Agency Certificate and are empowered to operate an
23
approved repair station by the Federal Aviation
24
Administration, (ii) have a Class IV Rating, and (iii) conduct
25
operations in accordance with Part 145 of the Federal Aviation
26
Regulations; and (B) the modification, replacement, repair,

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and maintenance of aircraft engines or power plants without
2
regard to whether or not those persons meet the qualifications
3
of item (A).
4

The changes made to this paragraph (29) by Public Act
5
98-534 are declarative of existing law. It is the intent of the
6
General Assembly that the exemption under this paragraph (29)
7
applies continuously from January 1, 2010 through December 31,
8
2024; however, no claim for credit or refund is allowed for
9
taxes paid as a result of the disallowance of this exemption on
10
or after January 1, 2015 and prior to February 5, 2020 (the
11
effective date of Public Act 101-629).
12

(30) Beginning January 1, 2017 and through December 31,
13
2026, menstrual pads, tampons, and menstrual cups.
14

(31) Tangible personal property transferred to a purchaser
15
who is exempt from tax by operation of federal law. This
16
paragraph is exempt from the provisions of Section 3-55.
17

(32) Qualified tangible personal property used in the
18
construction or operation of a data center that has been
19
granted a certificate of exemption by the Department of
20
Commerce and Economic Opportunity, whether that tangible
21
personal property is purchased by the owner, operator, or
22
tenant of the data center or by a contractor or subcontractor
23
of the owner, operator, or tenant. Data centers that would
24
have qualified for a certificate of exemption prior to January
25
1, 2020 had Public Act 101-31 been in effect, may apply for and
26
obtain an exemption for subsequent purchases of computer

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equipment or enabling software purchased or leased to upgrade,
2
supplement, or replace computer equipment or enabling software
3
purchased or leased in the original investment that would have
4
qualified.
5

The Department of Commerce and Economic Opportunity shall
6
grant a certificate of exemption under this item (32) to
7
qualified data centers as defined by Section 605-1025 of the
8
Department of Commerce and Economic Opportunity Law of the
9
Civil Administrative Code of Illinois.
10

For the purposes of this item (32):
11

"Data center" means a building or a series of
12

buildings rehabilitated or constructed to house working
13

servers in one physical location or multiple sites within
14

the State of Illinois.
15

"Qualified tangible personal property" means:
16

electrical systems and equipment; climate control and
17

chilling equipment and systems; mechanical systems and
18

equipment; monitoring and secure systems; emergency
19

generators; hardware; computers; servers; data storage
20

devices; network connectivity equipment; racks; cabinets;
21

telecommunications cabling infrastructure; raised floor
22

systems; peripheral components or systems; software;
23

mechanical, electrical, or plumbing systems; battery
24

systems; cooling systems and towers; temperature control
25

systems; other cabling; and other data center
26

infrastructure equipment and systems necessary to operate

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qualified tangible personal property, including fixtures;
2

and component parts of any of the foregoing, including
3

installation, maintenance, repair, refurbishment, and
4

replacement of qualified tangible personal property to
5

generate, transform, transmit, distribute, or manage
6

electricity necessary to operate qualified tangible
7

personal property; and all other tangible personal
8

property that is essential to the operations of a computer
9

data center. The term "qualified tangible personal
10

property" also includes building materials physically
11

incorporated into the qualifying data center. To document
12

the exemption allowed under this Section, the retailer
13

must obtain from the purchaser a copy of the certificate
14

of eligibility issued by the Department of Commerce and
15

Economic Opportunity.
16

This item (32) is exempt from the provisions of Section
17
3-55.
18

(33) Beginning July 1, 2022, breast pumps, breast pump
19
collection and storage supplies, and breast pump kits. This
20
item (33) is exempt from the provisions of Section 3-55. As
21
used in this item (33):
22

"Breast pump" means an electrically controlled or
23

manually controlled pump device designed or marketed to be
24

used to express milk from a human breast during lactation,
25

including the pump device and any battery, AC adapter, or
26

other power supply unit that is used to power the pump

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device and is packaged and sold with the pump device at the
2

time of sale.
3

"Breast pump collection and storage supplies" means
4

items of tangible personal property designed or marketed
5

to be used in conjunction with a breast pump to collect
6

milk expressed from a human breast and to store collected
7

milk until it is ready for consumption.
8

"Breast pump collection and storage supplies"
9

includes, but is not limited to: breast shields and breast
10

shield connectors; breast pump tubes and tubing adapters;
11

breast pump valves and membranes; backflow protectors and
12

backflow protector adaptors; bottles and bottle caps
13

specific to the operation of the breast pump; and breast
14

milk storage bags.
15

"Breast pump collection and storage supplies" does not
16

include: (1) bottles and bottle caps not specific to the
17

operation of the breast pump; (2) breast pump travel bags
18

and other similar carrying accessories, including ice
19

packs, labels, and other similar products; (3) breast pump
20

cleaning supplies; (4) nursing bras, bra pads, breast
21

shells, and other similar products; and (5) creams,
22

ointments, and other similar products that relieve
23

breastfeeding-related symptoms or conditions of the
24

breasts or nipples, unless sold as part of a breast pump
25

kit that is pre-packaged by the breast pump manufacturer
26

or distributor.

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"Breast pump kit" means a kit that: (1) contains no
2

more than a breast pump, breast pump collection and
3

storage supplies, a rechargeable battery for operating the
4

breast pump, a breastmilk cooler, bottle stands, ice
5

packs, and a breast pump carrying case; and (2) is
6

pre-packaged as a breast pump kit by the breast pump
7

manufacturer or distributor.
8

(34) Tangible personal property sold by or on behalf of
9
the State Treasurer pursuant to the Revised Uniform Unclaimed
10
Property Act. This item (34) is exempt from the provisions of
11
Section 3-55.
12

(35) Beginning on January 1, 2024, tangible personal
13
property purchased by an active duty member of the armed
14
forces of the United States who presents valid military
15
identification and purchases the property using a form of
16
payment where the federal government is the payor. The member
17
of the armed forces must complete, at the point of sale, a form
18
prescribed by the Department of Revenue documenting that the
19
transaction is eligible for the exemption under this
20
paragraph. Retailers must keep the form as documentation of
21
the exemption in their records for a period of not less than 6
22
years. "Armed forces of the United States" means the United
23
States Army, Navy, Air Force, Space Force, Marine Corps, or
24
Coast Guard. This paragraph is exempt from the provisions of
25
Section 3-55.
26

(36) Beginning July 1, 2024, home-delivered meals provided

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to Medicare or Medicaid recipients when payment is made by an
2
intermediary, such as a Medicare Administrative Contractor, a
3
Managed Care Organization, or a Medicare Advantage
4
Organization, pursuant to a government contract. This
5
paragraph (36) is exempt from the provisions of Section 3-55.
6

(37) Beginning on January 1, 2026, as further defined in
7
Section 3-10, food prepared for immediate consumption and
8
transferred incident to a sale of service subject to this Act
9
or the Service Use Tax Act by an entity licensed under the
10
Hospital Licensing Act, the Nursing Home Care Act, the
11
Assisted Living and Shared Housing Act, the ID/DD Community
12
Care Act, the MC/DD Act, the Specialized Mental Health
13
Rehabilitation Act of 2013, or the Child Care Act of 1969 or by
14
an entity that holds a permit issued pursuant to the Life Care
15
Facilities Act. This item (37) is exempt from the provisions
16
of Section 3-55.
17

(38) Beginning on January 1, 2026, as further defined in
18
Section 3-10, food for human consumption that is to be
19
consumed off the premises where it is sold (other than
20
alcoholic beverages, food consisting of or infused with adult
21
use cannabis, soft drinks, candy, and food that has been
22
prepared for immediate consumption). This item (38) is exempt
23
from the provisions of Section 3-55.
24

(39) The lease of the following tangible personal
25
property:
26

(1) computer software transferred subject to a license

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that meets the following requirements:
2

(A) it is evidenced by a written agreement signed
3

by the licensor and the customer;
4

(i) an electronic agreement in which the
5

customer accepts the license by means of an
6

electronic signature that is verifiable and can be
7

authenticated and is attached to or made part of
8

the license will comply with this requirement;
9

(ii) a license agreement in which the customer
10

electronically accepts the terms by clicking "I
11

agree" does not comply with this requirement;
12

(B) it restricts the customer's duplication and
13

use of the software;
14

(C) it prohibits the customer from licensing,
15

sublicensing, or transferring the software to a third
16

party (except to a related party) without the
17

permission and continued control of the licensor;
18

(D) the licensor has a policy of providing another
19

copy at minimal or no charge if the customer loses or
20

damages the software, or of permitting the licensee to
21

make and keep an archival copy, and such policy is
22

either stated in the license agreement, supported by
23

the licensor's books and records, or supported by a
24

notarized statement made under penalties of perjury by
25

the licensor; and
26

(E) the customer must destroy or return all copies

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of the software to the licensor at the end of the
2

license period; this provision is deemed to be met, in
3

the case of a perpetual license, without being set
4

forth in the license agreement; and
5

(2) property that is subject to a tax on lease
6

receipts imposed by a home rule unit of local government
7

if the ordinance imposing that tax was adopted prior to
8

January 1, 2023.
9

(40) On and after January 1, 2027, diapers for use by
10
infants, children, or adults. This paragraph is exempt from
11
the provisions of Section 3-55.

12
(Source: P.A. 103-9, Article 5, Section 5-15, eff. 6-7-23;
13
103-9, Article 15, Section 15-15, eff. 6-7-23; 103-154, eff.
14
6-30-23; 103-384, eff. 1-1-24; 103-592, eff. 1-1-25; 103-605,
15
eff. 7-1-24; 103-643, eff. 7-1-24; 103-746, eff. 1-1-25;
16
103-781, eff. 8-5-24; 103-995, eff. 8-9-24; 104-417, eff.
17
8-15-25.)

18

Section 20.
The Retailers' Occupation Tax Act is amended
19
by changing Section 2-5 as follows:

20

(35 ILCS 120/2-5)
21

Sec. 2-5.
Exemptions.
Gross receipts from proceeds from
22
the sale, which, on and after January 1, 2025, includes the
23
lease, of the following tangible personal property are exempt
24
from the tax imposed by this Act:

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(1) Farm chemicals.
2

(2) Farm machinery and equipment, both new and used,
3

including that manufactured on special order, certified by
4

the purchaser to be used primarily for production
5

agriculture or State or federal agricultural programs,
6

including individual replacement parts for the machinery
7

and equipment, including machinery and equipment purchased
8

for lease, and including implements of husbandry defined
9

in Section 1-130 of the Illinois Vehicle Code, farm
10

machinery and agricultural chemical and fertilizer
11

spreaders, and nurse wagons required to be registered
12

under Section 3-809 of the Illinois Vehicle Code, but
13

excluding other motor vehicles required to be registered
14

under the Illinois Vehicle Code. Horticultural polyhouses
15

or hoop houses used for propagating, growing, or
16

overwintering plants shall be considered farm machinery
17

and equipment under this item (2). Agricultural chemical
18

tender tanks and dry boxes shall include units sold
19

separately from a motor vehicle required to be licensed
20

and units sold mounted on a motor vehicle required to be
21

licensed, if the selling price of the tender is separately
22

stated.
23

Farm machinery and equipment shall include precision
24

farming equipment that is installed or purchased to be
25

installed on farm machinery and equipment including, but
26

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

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seeders, or spreaders. Precision farming equipment
2

includes, but is not limited to, soil testing sensors,
3

computers, monitors, software, global positioning and
4

mapping systems, and other such equipment.
5

Farm machinery and equipment also includes computers,
6

sensors, software, and related equipment used primarily in
7

the computer-assisted operation of production agriculture
8

facilities, equipment, and activities such as, but not
9

limited to, the collection, monitoring, and correlation of
10

animal and crop data for the purpose of formulating animal
11

diets and agricultural chemicals.
12

Beginning on January 1, 2024, farm machinery and
13

equipment also includes electrical power generation
14

equipment used primarily for production agriculture.
15

This item (2) is exempt from the provisions of Section
16

2-70.
17

(3) Until July 1, 2003, distillation machinery and
18

equipment, sold as a unit or kit, assembled or installed
19

by the retailer, certified by the user to be used only for
20

the production of ethyl alcohol that will be used for
21

consumption as motor fuel or as a component of motor fuel
22

for the personal use of the user, and not subject to sale
23

or resale.
24

(4) Until July 1, 2003 and beginning again September
25

1, 2004 through August 30, 2014, graphic arts machinery
26

and equipment, including repair and replacement parts,

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both new and used, and including that manufactured on
2

special order or purchased for lease, certified by the
3

purchaser to be used primarily for graphic arts
4

production. Equipment includes chemicals or chemicals
5

acting as catalysts but only if the chemicals or chemicals
6

acting as catalysts effect a direct and immediate change
7

upon a graphic arts product. Beginning on July 1, 2017,
8

graphic arts machinery and equipment is included in the
9

manufacturing and assembling machinery and equipment
10

exemption under paragraph (14).
11

(5) A motor vehicle that is used for automobile
12

renting, as defined in the Automobile Renting Occupation
13

and Use Tax Act. This paragraph is exempt from the
14

provisions of Section 2-70.
15

(6) Personal property sold by a teacher-sponsored
16

student organization affiliated with an elementary or
17

secondary school located in Illinois.
18

(7) Until July 1, 2003, proceeds of that portion of
19

the selling price of a passenger car the sale of which is
20

subject to the Replacement Vehicle Tax.
21

(8) Personal property sold to an Illinois county fair
22

association for use in conducting, operating, or promoting
23

the county fair.
24

(9) Personal property sold to a not-for-profit arts or
25

cultural organization that establishes, by proof required
26

by the Department by rule, that it has received an

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exemption under Section 501(c)(3) of the Internal Revenue
2

Code and that is organized and operated primarily for the
3

presentation or support of arts or cultural programming,
4

activities, or services. These organizations include, but
5

are not limited to, music and dramatic arts organizations
6

such as symphony orchestras and theatrical groups, arts
7

and cultural service organizations, local arts councils,
8

visual arts organizations, and media arts organizations.
9

On and after July 1, 2001 (the effective date of Public Act
10

92-35), however, an entity otherwise eligible for this
11

exemption shall not make tax-free purchases unless it has
12

an active identification number issued by the Department.
13

(10) Personal property sold by a corporation, society,
14

association, foundation, institution, or organization,
15

other than a limited liability company, that is organized
16

and operated as a not-for-profit service enterprise for
17

the benefit of persons 65 years of age or older if the
18

personal property was not purchased by the enterprise for
19

the purpose of resale by the enterprise.
20

(11) Except as otherwise provided in this Section,
21

personal property sold to a governmental body, to a
22

corporation, society, association, foundation, or
23

institution organized and operated exclusively for
24

charitable, religious, or educational purposes, or to a
25

not-for-profit corporation, society, association,
26

foundation, institution, or organization that has no

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compensated officers or employees and that is organized
2

and operated primarily for the recreation of persons 55
3

years of age or older. A limited liability company may
4

qualify for the exemption under this paragraph only if the
5

limited liability company is organized and operated
6

exclusively for educational purposes. On and after July 1,
7

1987, however, no entity otherwise eligible for this
8

exemption shall make tax-free purchases unless it has an
9

active identification number issued by the Department.
10

(12) (Blank).
11

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

2004, motor vehicles of the second division with a gross
13

vehicle weight in excess of 8,000 pounds that are subject
14

to the commercial distribution fee imposed under Section
15

3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
16

2004 and through June 30, 2005, the use in this State of
17

motor vehicles of the second division: (i) with a gross
18

vehicle weight rating in excess of 8,000 pounds; (ii) that
19

are subject to the commercial distribution fee imposed
20

under Section 3-815.1 of the Illinois Vehicle Code; and
21

(iii) that are primarily used for commercial purposes.
22

Through June 30, 2005, this exemption applies to repair
23

and replacement parts added after the initial purchase of
24

such a motor vehicle if that motor vehicle is used in a
25

manner that would qualify for the rolling stock exemption
26

otherwise provided for in this Act. For purposes of this

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paragraph, "used for commercial purposes" means the
2

transportation of persons or property in furtherance of
3

any commercial or industrial enterprise whether for-hire
4

or not.
5

(13) Proceeds from sales to owners or lessors,
6

lessees, or shippers of tangible personal property that is
7

utilized by interstate carriers for hire for use as
8

rolling stock moving in interstate commerce and equipment
9

operated by a telecommunications provider, licensed as a
10

common carrier by the Federal Communications Commission,
11

which is permanently installed in or affixed to aircraft
12

moving in interstate commerce.
13

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

purchaser, or a lessee of the purchaser, primarily in the
15

process of manufacturing or assembling tangible personal
16

property for wholesale or retail sale or lease, whether
17

the sale or lease is made directly by the manufacturer or
18

by some other person, whether the materials used in the
19

process are owned by the manufacturer or some other
20

person, or whether the sale or lease is made apart from or
21

as an incident to the seller's engaging in the service
22

occupation of producing machines, tools, dies, jigs,
23

patterns, gauges, or other similar items of no commercial
24

value on special order for a particular purchaser. The
25

exemption provided by this paragraph (14) does not include
26

machinery and equipment used in (i) the generation of

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electricity for wholesale or retail sale; (ii) the
2

generation or treatment of natural or artificial gas for
3

wholesale or retail sale that is delivered to customers
4

through pipes, pipelines, or mains; or (iii) the treatment
5

of water for wholesale or retail sale that is delivered to
6

customers through pipes, pipelines, or mains. The
7

provisions of Public Act 98-583 are declaratory of
8

existing law as to the meaning and scope of this
9

exemption. Beginning on July 1, 2017, the exemption
10

provided by this paragraph (14) includes, but is not
11

limited to, graphic arts machinery and equipment, as
12

defined in paragraph (4) of this Section.
13

(15) Proceeds of mandatory service charges separately
14

stated on customers' bills for purchase and consumption of
15

food and beverages, to the extent that the proceeds of the
16

service charge are in fact turned over as tips or as a
17

substitute for tips to the employees who participate
18

directly in preparing, serving, hosting or cleaning up the
19

food or beverage function with respect to which the
20

service charge is imposed.
21

(16) Tangible personal property sold to a purchaser if
22

the purchaser is exempt from use tax by operation of
23

federal law. This paragraph is exempt from the provisions
24

of Section 2-70.
25

(17) Tangible personal property sold to a common
26

carrier by rail or motor that receives the physical

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possession of the property in Illinois and that transports
2

the property, or shares with another common carrier in the
3

transportation of the property, out of Illinois on a
4

standard uniform bill of lading showing the seller of the
5

property as the shipper or consignor of the property to a
6

destination outside Illinois, for use outside Illinois.
7

(18) Legal tender, currency, medallions, or gold or
8

silver coinage issued by the State of Illinois, the
9

government of the United States of America, or the
10

government of any foreign country, and bullion.
11

(19) Until July 1, 2003, oil field exploration,
12

drilling, and production equipment, including (i) rigs and
13

parts of rigs, rotary rigs, cable tool rigs, and workover
14

rigs, (ii) pipe and tubular goods, including casing and
15

drill strings, (iii) pumps and pump-jack units, (iv)
16

storage tanks and flow lines, (v) any individual
17

replacement part for oil field exploration, drilling, and
18

production equipment, and (vi) machinery and equipment
19

purchased for lease; but excluding motor vehicles required
20

to be registered under the Illinois Vehicle Code.
21

(20) Photoprocessing machinery and equipment,
22

including repair and replacement parts, both new and used,
23

including that manufactured on special order, certified by
24

the purchaser to be used primarily for photoprocessing,
25

and including photoprocessing machinery and equipment
26

purchased for lease.

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(21) Until July 1, 2028, coal and aggregate
2

exploration, mining, off-highway hauling, processing,
3

maintenance, and reclamation equipment, including
4

replacement parts and equipment, and including equipment
5

purchased for lease, but excluding motor vehicles required
6

to be registered under the Illinois Vehicle Code. The
7

changes made to this Section by Public Act 97-767 apply on
8

and after July 1, 2003, but no claim for credit or refund
9

is allowed on or after August 16, 2013 (the effective date
10

of Public Act 98-456) for such taxes paid during the
11

period beginning July 1, 2003 and ending on August 16,
12

2013 (the effective date of Public Act 98-456).
13

(22) Until June 30, 2013, fuel and petroleum products
14

sold to or used by an air carrier, certified by the carrier
15

to be used for consumption, shipment, or storage in the
16

conduct of its business as an air common carrier, for a
17

flight destined for or returning from a location or
18

locations outside the United States without regard to
19

previous or subsequent domestic stopovers.
20

Beginning July 1, 2013, fuel and petroleum products
21

sold to or used by an air carrier, certified by the carrier
22

to be used for consumption, shipment, or storage in the
23

conduct of its business as an air common carrier, for a
24

flight that (i) is engaged in foreign trade or is engaged
25

in trade between the United States and any of its
26

possessions and (ii) transports at least one individual or

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package for hire from the city of origination to the city
2

of final destination on the same aircraft, without regard
3

to a change in the flight number of that aircraft.
4

(23) A transaction in which the purchase order is
5

received by a florist who is located outside Illinois, but
6

who has a florist located in Illinois deliver the property
7

to the purchaser or the purchaser's donee in Illinois.
8

(24) Fuel consumed or used in the operation of ships,
9

barges, or vessels that are used primarily in or for the
10

transportation of property or the conveyance of persons
11

for hire on rivers bordering on this State if the fuel is
12

delivered by the seller to the purchaser's barge, ship, or
13

vessel while it is afloat upon that bordering river.
14

(25) Except as provided in items (25-5) and (25-6) of
15

this Section, a motor vehicle sold in this State to a
16

nonresident even though the motor vehicle is delivered to
17

the nonresident in this State, if the motor vehicle is not
18

to be titled in this State, and if a drive-away permit is
19

issued to the motor vehicle as provided in Section 3-603
20

of the Illinois Vehicle Code or if the nonresident
21

purchaser has vehicle registration plates to transfer to
22

the motor vehicle upon returning to his or her home state.
23

The issuance of the drive-away permit or having the
24

out-of-state registration plates to be transferred is
25

prima facie evidence that the motor vehicle will not be
26

titled in this State.

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(25-5) The exemption under item (25) does not apply if
2

the state in which the motor vehicle will be titled does
3

not allow a reciprocal exemption for a motor vehicle sold
4

and delivered in that state to an Illinois resident but
5

titled in Illinois. The tax collected under this Act on
6

the sale of a motor vehicle in this State to a resident of
7

another state that does not allow a reciprocal exemption
8

shall be imposed at a rate equal to the state's rate of tax
9

on taxable property in the state in which the purchaser is
10

a resident, except that the tax shall not exceed the tax
11

that would otherwise be imposed under this Act. At the
12

time of the sale, the purchaser shall execute a statement,
13

signed under penalty of perjury, of his or her intent to
14

title the vehicle in the state in which the purchaser is a
15

resident within 30 days after the sale and of the fact of
16

the payment to the State of Illinois of tax in an amount
17

equivalent to the state's rate of tax on taxable property
18

in his or her state of residence and shall submit the
19

statement to the appropriate tax collection agency in his
20

or her state of residence. In addition, the retailer must
21

retain a signed copy of the statement in his or her
22

records. Nothing in this item shall be construed to
23

require the removal of the vehicle from this state
24

following the filing of an intent to title the vehicle in
25

the purchaser's state of residence if the purchaser titles
26

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

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after the date of sale. The tax collected under this Act in
2

accordance with this item (25-5) shall be proportionately
3

distributed as if the tax were collected at the 6.25%
4

general rate imposed under this Act.
5

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

exemption under item (25) does not apply if the purchaser
7

is a limited liability company and a member of the limited
8

liability company is a resident of Illinois. This
9

presumption may be rebutted by other evidence, such as
10

evidence the motor vehicle is insured at a garaging or
11

storage address outside Illinois or other evidence of the
12

physical address at which the motor vehicle will be
13

permanently stored or garaged outside Illinois.
14

(25-7) Beginning on July 1, 2007, no tax is imposed
15

under this Act on the sale of an aircraft, as defined in
16

Section 3 of the Illinois Aeronautics Act, if all of the
17

following conditions are met:
18

(1) the aircraft leaves this State within 15 days
19

after the later of either the issuance of the final
20

billing for the sale of the aircraft, or the
21

authorized approval for return to service, completion
22

of the maintenance record entry, and completion of the
23

test flight and ground test for inspection, as
24

required by 14 CFR 91.407;
25

(2) the aircraft is not based or registered in
26

this State after the sale of the aircraft; and

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(3) the seller retains in his or her books and
2

records and provides to the Department a signed and
3

dated certification from the purchaser, on a form
4

prescribed by the Department, certifying that the
5

requirements of this item (25-7) are met. The
6

certificate must also include the name and address of
7

the purchaser, the address of the location where the
8

aircraft is to be titled or registered, the address of
9

the primary physical location of the aircraft, and
10

other information that the Department may reasonably
11

require.
12

For purposes of this item (25-7):
13

"Based in this State" means hangared, stored, or
14

otherwise used, excluding post-sale customizations as
15

defined in this Section, for 10 or more days in each
16

12-month period immediately following the date of the sale
17

of the aircraft.
18

"Registered in this State" means an aircraft
19

registered with the Department of Transportation,
20

Aeronautics Division, or titled or registered with the
21

Federal Aviation Administration to an address located in
22

this State.
23

This paragraph (25-7) is exempt from the provisions of
24

Section 2-70.
25

(26) Semen used for artificial insemination of
26

livestock for direct agricultural production.

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(27) Horses, or interests in horses, registered with
2

and meeting the requirements of any of the Arabian Horse
3

Club Registry of America, Appaloosa Horse Club, American
4

Quarter Horse Association, United States Trotting
5

Association, or Jockey Club, as appropriate, used for
6

purposes of breeding or racing for prizes. This item (27)
7

is exempt from the provisions of Section 2-70, and the
8

exemption provided for under this item (27) applies for
9

all periods beginning May 30, 1995, but no claim for
10

credit or refund is allowed on or after January 1, 2008
11

(the effective date of Public Act 95-88) for such taxes
12

paid during the period beginning May 30, 2000 and ending
13

on January 1, 2008 (the effective date of Public Act
14

95-88).
15

(28) Computers and communications equipment utilized
16

for any hospital purpose and equipment used in the
17

diagnosis, analysis, or treatment of hospital patients
18

sold to a lessor who leases the equipment, under a lease of
19

one year or longer executed or in effect at the time of the
20

purchase, to a hospital that has been issued an active tax
21

exemption identification number by the Department under
22

Section 1g of this Act.
23

(29) Personal property sold to a lessor who leases the
24

property, under a lease of one year or longer executed or
25

in effect at the time of the purchase, to a governmental
26

body that has been issued an active tax exemption

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identification number by the Department under Section 1g
2

of this Act.
3

(30) Beginning with taxable years ending on or after
4

December 31, 1995 and ending with taxable years ending on
5

or before December 31, 2004, personal property that is
6

donated for disaster relief to be used in a State or
7

federally declared disaster area in Illinois or bordering
8

Illinois by a manufacturer or retailer that is registered
9

in this State to a corporation, society, association,
10

foundation, or institution that has been issued a sales
11

tax exemption identification number by the Department that
12

assists victims of the disaster who reside within the
13

declared disaster area.
14

(31) Beginning with taxable years ending on or after
15

December 31, 1995 and ending with taxable years ending on
16

or before December 31, 2004, personal property that is
17

used in the performance of infrastructure repairs in this
18

State, including, but not limited to, municipal roads and
19

streets, access roads, bridges, sidewalks, waste disposal
20

systems, water and sewer line extensions, water
21

distribution and purification facilities, storm water
22

drainage and retention facilities, and sewage treatment
23

facilities, resulting from a State or federally declared
24

disaster in Illinois or bordering Illinois when such
25

repairs are initiated on facilities located in the
26

declared disaster area within 6 months after the disaster.

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(32) Beginning July 1, 1999, game or game birds sold
2

at a "game breeding and hunting preserve area" as that
3

term is used in the Wildlife Code. This paragraph is
4

exempt from the provisions of Section 2-70.
5

(33) A motor vehicle, as that term is defined in
6

Section 1-146 of the Illinois Vehicle Code, that is
7

donated to a corporation, limited liability company,
8

society, association, foundation, or institution that is
9

determined by the Department to be organized and operated
10

exclusively for educational purposes. For purposes of this
11

exemption, "a corporation, limited liability company,
12

society, association, foundation, or institution organized
13

and operated exclusively for educational purposes" means
14

all tax-supported public schools, private schools that
15

offer systematic instruction in useful branches of
16

learning by methods common to public schools and that
17

compare favorably in their scope and intensity with the
18

course of study presented in tax-supported schools, and
19

vocational or technical schools or institutes organized
20

and operated exclusively to provide a course of study of
21

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

(34) Beginning January 1, 2000, personal property,
26

including food, purchased through fundraising events for

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the benefit of a public or private elementary or secondary
2

school, a group of those schools, or one or more school
3

districts if the events are sponsored by an entity
4

recognized by the school district that consists primarily
5

of volunteers and includes parents and teachers of the
6

school children. This paragraph does not apply to
7

fundraising events (i) for the benefit of private home
8

instruction or (ii) for which the fundraising entity
9

purchases the personal property sold at the events from
10

another individual or entity that sold the property for
11

the purpose of resale by the fundraising entity and that
12

profits from the sale to the fundraising entity. This
13

paragraph is exempt from the provisions of Section 2-70.
14

(35) Beginning January 1, 2000 and through December
15

31, 2001, new or used automatic vending machines that
16

prepare and serve hot food and beverages, including
17

coffee, soup, and other items, and replacement parts for
18

these machines. Beginning January 1, 2002 and through June
19

30, 2003, machines and parts for machines used in
20

commercial, coin-operated amusement and vending business
21

if a use or occupation tax is paid on the gross receipts
22

derived from the use of the commercial, coin-operated
23

amusement and vending machines. This paragraph is exempt
24

from the provisions of Section 2-70.
25

(35-5) Beginning August 23, 2001 and through June 30,
26

2016, food for human consumption that is to be consumed

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off the premises where it is sold (other than alcoholic
2

beverages, soft drinks, and food that has been prepared
3

for immediate consumption) and prescription and
4

nonprescription medicines, drugs, medical appliances, and
5

insulin, urine testing materials, syringes, and needles
6

used by diabetics, for human use, when purchased for use
7

by a person receiving medical assistance under Article V
8

of the Illinois Public Aid Code who resides in a licensed
9

long-term care facility, as defined in the Nursing Home
10

Care Act, or a licensed facility as defined in the ID/DD
11

Community Care Act, the MC/DD Act, or the Specialized
12

Mental Health Rehabilitation Act of 2013.
13

(36) Beginning August 2, 2001, computers and
14

communications equipment utilized for any hospital purpose
15

and equipment used in the diagnosis, analysis, or
16

treatment of hospital patients sold to a lessor who leases
17

the equipment, under a lease of one year or longer
18

executed or in effect at the time of the purchase, to a
19

hospital that has been issued an active tax exemption
20

identification number by the Department under Section 1g
21

of this Act. This paragraph is exempt from the provisions
22

of Section 2-70.
23

(37) Beginning August 2, 2001, personal property sold
24

to a lessor who leases the property, under a lease of one
25

year or longer executed or in effect at the time of the
26

purchase, to a governmental body that has been issued an

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active tax exemption identification number by the
2

Department under Section 1g of this Act. This paragraph is
3

exempt from the provisions of Section 2-70.
4

(38) Beginning on January 1, 2002 and through June 30,
5

2016, tangible personal property purchased from an
6

Illinois retailer by a taxpayer engaged in centralized
7

purchasing activities in Illinois who will, upon receipt
8

of the property in Illinois, temporarily store the
9

property in Illinois (i) for the purpose of subsequently
10

transporting it outside this State for use or consumption
11

thereafter solely outside this State or (ii) for the
12

purpose of being processed, fabricated, or manufactured
13

into, attached to, or incorporated into other tangible
14

personal property to be transported outside this State and
15

thereafter used or consumed solely outside this State. The
16

Director of Revenue shall, pursuant to rules adopted in
17

accordance with the Illinois Administrative Procedure Act,
18

issue a permit to any taxpayer in good standing with the
19

Department who is eligible for the exemption under this
20

paragraph (38). The permit issued under this paragraph
21

(38) shall authorize the holder, to the extent and in the
22

manner specified in the rules adopted under this Act, to
23

purchase tangible personal property from a retailer exempt
24

from the taxes imposed by this Act. Taxpayers shall
25

maintain all necessary books and records to substantiate
26

the use and consumption of all such tangible personal

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property outside of the State of Illinois.
2

(39) Beginning January 1, 2008, tangible personal
3

property used in the construction or maintenance of a
4

community water supply, as defined under Section 3.145 of
5

the Environmental Protection Act, that is operated by a
6

not-for-profit corporation that holds a valid water supply
7

permit issued under Title IV of the Environmental
8

Protection Act. This paragraph is exempt from the
9

provisions of Section 2-70.
10

(40) Beginning January 1, 2010 and continuing through
11

December 31, 2029, materials, parts, equipment,
12

components, and furnishings incorporated into or upon an
13

aircraft as part of the modification, refurbishment,
14

completion, replacement, repair, or maintenance of the
15

aircraft. This exemption includes consumable supplies used
16

in the modification, refurbishment, completion,
17

replacement, repair, and maintenance of aircraft. However,
18

until January 1, 2024, this exemption excludes any
19

materials, parts, equipment, components, and consumable
20

supplies used in the modification, replacement, repair,
21

and maintenance of aircraft engines or power plants,
22

whether such engines or power plants are installed or
23

uninstalled upon any such aircraft. "Consumable supplies"
24

include, but are not limited to, adhesive, tape,
25

sandpaper, general purpose lubricants, cleaning solution,
26

latex gloves, and protective films.

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Beginning January 1, 2010 and continuing through
2

December 31, 2023, this exemption applies only to the sale
3

of qualifying tangible personal property to persons who
4

modify, refurbish, complete, replace, or maintain an
5

aircraft and who (i) hold an Air Agency Certificate and
6

are empowered to operate an approved repair station by the
7

Federal Aviation Administration, (ii) have a Class IV
8

Rating, and (iii) conduct operations in accordance with
9

Part 145 of the Federal Aviation Regulations. The
10

exemption does not include aircraft operated by a
11

commercial air carrier providing scheduled passenger air
12

service pursuant to authority issued under Part 121 or
13

Part 129 of the Federal Aviation Regulations. From January
14

1, 2024 through December 31, 2029, this exemption applies
15

only to the sale of qualifying tangible personal property
16

to: (A) persons who modify, refurbish, complete, repair,
17

replace, or maintain aircraft and who (i) hold an Air
18

Agency Certificate and are empowered to operate an
19

approved repair station by the Federal Aviation
20

Administration, (ii) have a Class IV Rating, and (iii)
21

conduct operations in accordance with Part 145 of the
22

Federal Aviation Regulations; and (B) persons who engage
23

in the modification, replacement, repair, and maintenance
24

of aircraft engines or power plants without regard to
25

whether or not those persons meet the qualifications of
26

item (A).

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The changes made to this paragraph (40) by Public Act
2

98-534 are declarative of existing law. It is the intent
3

of the General Assembly that the exemption under this
4

paragraph (40) applies continuously from January 1, 2010
5

through December 31, 2024; however, no claim for credit or
6

refund is allowed for taxes paid as a result of the
7

disallowance of this exemption on or after January 1, 2015
8

and prior to February 5, 2020 (the effective date of
9

Public Act 101-629).
10

(41) Tangible personal property sold to a
11

public-facilities corporation, as described in Section
12

11-65-10 of the Illinois Municipal Code, for purposes of
13

constructing or furnishing a municipal convention hall,
14

but only if the legal title to the municipal convention
15

hall is transferred to the municipality without any
16

further consideration by or on behalf of the municipality
17

at the time of the completion of the municipal convention
18

hall or upon the retirement or redemption of any bonds or
19

other debt instruments issued by the public-facilities
20

corporation in connection with the development of the
21

municipal convention hall. This exemption includes
22

existing public-facilities corporations as provided in
23

Section 11-65-25 of the Illinois Municipal Code. This
24

paragraph is exempt from the provisions of Section 2-70.
25

(42) Beginning January 1, 2017 and through December
26

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

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(43) Merchandise that is subject to the Rental
2

Purchase Agreement Occupation and Use Tax. The purchaser
3

must certify that the item is purchased to be rented
4

subject to a rental-purchase agreement, as defined in the
5

Rental-Purchase Agreement Act, and provide proof of
6

registration under the Rental Purchase Agreement
7

Occupation and Use Tax Act. This paragraph is exempt from
8

the provisions of Section 2-70.
9

(44) Qualified tangible personal property used in the
10

construction or operation of a data center that has been
11

granted a certificate of exemption by the Department of
12

Commerce and Economic Opportunity, whether that tangible
13

personal property is purchased by the owner, operator, or
14

tenant of the data center or by a contractor or
15

subcontractor of the owner, operator, or tenant. Data
16

centers that would have qualified for a certificate of
17

exemption prior to January 1, 2020 had Public Act 101-31
18

been in effect, may apply for and obtain an exemption for
19

subsequent purchases of computer equipment or enabling
20

software purchased or leased to upgrade, supplement, or
21

replace computer equipment or enabling software purchased
22

or leased in the original investment that would have
23

qualified.
24

The Department of Commerce and Economic Opportunity
25

shall grant a certificate of exemption under this item
26

(44) to qualified data centers as defined by Section

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605-1025 of the Department of Commerce and Economic
2

Opportunity Law of the Civil Administrative Code of
3

Illinois.
4

For the purposes of this item (44):
5

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

buildings rehabilitated or constructed to house
7

working servers in one physical location or multiple
8

sites within 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;
15

cabinets; telecommunications cabling infrastructure;
16

raised floor systems; peripheral components or
17

systems; software; mechanical, electrical, or plumbing
18

systems; battery systems; cooling systems and towers;
19

temperature control systems; other cabling; and other
20

data center infrastructure equipment and systems
21

necessary to operate qualified tangible personal
22

property, including fixtures; and component parts of
23

any of the foregoing, including installation,
24

maintenance, repair, refurbishment, and replacement of
25

qualified tangible personal property to generate,
26

transform, transmit, distribute, or manage electricity

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necessary to operate qualified tangible personal
2

property; and all other tangible personal property
3

that is essential to the operations of a computer data
4

center. The term "qualified tangible personal
5

property" also includes building materials physically
6

incorporated into the qualifying data center. To
7

document the exemption allowed under this Section, the
8

retailer must obtain from the purchaser a copy of the
9

certificate of eligibility issued by the Department of
10

Commerce and Economic Opportunity.
11

This item (44) is exempt from the provisions of
12

Section 2-70.
13

(45) Beginning January 1, 2020 and through December
14

31, 2020, sales of tangible personal property made by a
15

marketplace seller over a marketplace for which tax is due
16

under this Act but for which use tax has been collected and
17

remitted to the Department by a marketplace facilitator
18

under Section 2d of the Use Tax Act are exempt from tax
19

under this Act. A marketplace seller claiming this
20

exemption shall maintain books and records demonstrating
21

that the use tax on such sales has been collected and
22

remitted by a marketplace facilitator. Marketplace sellers
23

that have properly remitted tax under this Act on such
24

sales may file a claim for credit as provided in Section 6
25

of this Act. No claim is allowed, however, for such taxes
26

for which a credit or refund has been issued to the

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1

marketplace facilitator under the Use Tax Act, or for
2

which the marketplace facilitator has filed a claim for
3

credit or refund under the Use Tax Act.
4

(46) Beginning July 1, 2022, breast pumps, breast pump
5

collection and storage supplies, and breast pump kits.
6

This item (46) is exempt from the provisions of Section
7

2-70. As used in this item (46):
8

"Breast pump" means an electrically controlled or
9

manually controlled pump device designed or marketed to be
10

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

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

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

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

time of sale.
15

"Breast pump collection and storage supplies" means
16

items of tangible personal property designed or marketed
17

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

milk expressed from a human breast and to store collected
19

milk until it is ready for consumption.
20

"Breast pump collection and storage supplies"
21

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

shield connectors; breast pump tubes and tubing adapters;
23

breast pump valves and membranes; backflow protectors and
24

backflow protector adaptors; bottles and bottle caps
25

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

milk storage bags.

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"Breast pump collection and storage supplies" does not
2

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

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

and other similar carrying accessories, including ice
5

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

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

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

ointments, and other similar products that relieve
9

breastfeeding-related symptoms or conditions of the
10

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

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

or distributor.
13

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

more than a breast pump, breast pump collection and
15

storage supplies, a rechargeable battery for operating the
16

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

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

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

manufacturer or distributor.
20

(47) Tangible personal property sold by or on behalf
21

of the State Treasurer pursuant to the Revised Uniform
22

Unclaimed Property Act. This item (47) is exempt from the
23

provisions of Section 2-70.
24

(48) Beginning on January 1, 2024, tangible personal
25

property purchased by an active duty member of the armed
26

forces of the United States who presents valid military

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1

identification and purchases the property using a form of
2

payment where the federal government is the payor. The
3

member of the armed forces must complete, at the point of
4

sale, a form prescribed by the Department of Revenue
5

documenting that the transaction is eligible for the
6

exemption under this paragraph. Retailers must keep the
7

form as documentation of the exemption in their records
8

for a period of not less than 6 years. "Armed forces of the
9

United States" means the United States Army, Navy, Air
10

Force, Space Force, Marine Corps, or Coast Guard. This
11

paragraph is exempt from the provisions of Section 2-70.
12

(49) Beginning July 1, 2024, home-delivered meals
13

provided to Medicare or Medicaid recipients when payment
14

is made by an intermediary, such as a Medicare
15

Administrative Contractor, a Managed Care Organization, or
16

a Medicare Advantage Organization, pursuant to a
17

government contract. This paragraph (49) is exempt from
18

the provisions of Section 2-70.
19

(50) Beginning on January 1, 2026, as further defined
20

in Section 2-10, food for human consumption that is to be
21

consumed off the premises where it is sold (other than
22

alcoholic beverages, food consisting of or infused with
23

adult use cannabis, soft drinks, candy, and food that has
24

been prepared for immediate consumption). This item (50)
25

is exempt from the provisions of Section 2-70.
26

(51) Gross receipts from the lease of the following

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tangible personal property:
2

(1) computer software transferred subject to a
3

license that meets the following requirements:
4

(A) it is evidenced by a written agreement
5

signed by the licensor and the customer;
6

(i) an electronic agreement in which the
7

customer accepts the license by means of an
8

electronic signature that is verifiable and
9

can be authenticated and is attached to or
10

made part of the license will comply with this
11

requirement;
12

(ii) a license agreement in which the
13

customer electronically accepts the terms by
14

clicking "I agree" does not comply with this
15

requirement;
16

(B) it restricts the customer's duplication
17

and use of the software;
18

(C) it prohibits the customer from licensing,
19

sublicensing, or transferring the software to a
20

third party (except to a related party) without
21

the permission and continued control of the
22

licensor;
23

(D) the licensor has a policy of providing
24

another copy at minimal or no charge if the
25

customer loses or damages the software, or of
26

permitting the licensee to make and keep an

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1

archival copy, and such policy is either stated in
2

the license agreement, supported by the licensor's
3

books and records, or supported by a notarized
4

statement made under penalties of perjury by the
5

licensor; and
6

(E) the customer must destroy or return all
7

copies of the software to the licensor at the end
8

of the license period; this provision is deemed to
9

be met, in the case of a perpetual license,
10

without being set forth in the license agreement;
11

and
12

(2) property that is subject to a tax on lease
13

receipts imposed by a home rule unit of local
14

government if the ordinance imposing that tax was
15

adopted prior to January 1, 2023.
16

(52) On and after January 1, 2027, diapers for use by
17

infants, children, or adults. This paragraph is exempt
18

from the provisions of Section 2-70.

19
(Source: P.A. 103-9, Article 5, Section 5-20, eff. 6-7-23;
20
103-9, Article 15, Section 15-20, eff. 6-7-23; 103-154, eff.
21
6-30-23; 103-384, eff. 1-1-24; 103-592, eff. 1-1-25; 103-605,
22
eff. 7-1-24; 103-643, eff. 7-1-24; 103-746, eff. 1-1-25;
23
103-781, eff. 8-5-24; 103-995, eff. 8-9-24; 104-6, eff.
24
6-16-25; 104-417, eff. 8-15-25.)

25

Section 99.
Effective date.
This Act takes effect upon
26
becoming law.

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