AN ACT concerning revenue.



Be it enacted by the People of the State of Illinois,

represented in the General Assembly:



Article 5. Leveling the Playing Field for Illinois Retail Act



→ This part of the bill has nothing to do with gambling, but it’s really interesting if you’re into tax policy. We don’t know much about it, other than it’s a proposal to tax online purchases. Know more about this? Have some thoughts? Let us know.

Section 5-1. Short title. This Article may be cited as the

Leveling the Playing Field for Illinois Retail Act. References

in this Article to "this Act" means this Article.



Section 5-5. Findings. The General Assembly finds that

certified service providers and certified automated systems

simplify use and occupation tax compliance for out-of-state

sellers, which fosters higher levels of accurate tax collection

and remittance and generates administrative savings and new

marginal tax revenue for both State and local taxing

jurisdictions. By making the services of certified service

providers and certified automated systems available to remote

retailers without charge as provided in this Act, the State

will substantially eliminate the burden on those remote

retailers to collect and remit both State and local taxing

jurisdiction use and occupation taxes. While providing a means

for remote retailers to collect and remit tax on an even basis

with Illinois retailers, this Act also protects existing local

tax revenue streams by retaining origin sourcing for all

transactions by retailers maintaining a physical presence in

Illinois.



Section 5-10. Definitions. As used in this Act:

"Certified service provider" means an agent certified by

the Department to perform the remote retailer's use and

occupation tax functions, as outlined in the contract between

the State and the certified service provider.

"Certified automated system" means an automated software

system that is certified by the State as meeting all

performance and tax calculation standards required by

Department rules.

"Department" means the Department of Revenue.

"Remote retailer" means a retailer as defined in Section 1

of the Retailers' Occupation Tax Act that has an obligation to

collect State and local retailers' occupation tax under

subsection (b) of Section 2 of the Retailers' Occupation Tax

Act.

"Retailers' occupation tax" means the tax levied under the

Retailers' Occupation Tax Act and all applicable local

retailers' occupation taxes collected by the Department in

conjunction with the State retailers' occupation tax.



Section 5-15. Certification of certified service

providers. The Department shall, no later than December 31,

2019, establish standards for the certification of certified

service providers and certified automated systems and may act

jointly with other states to accomplish these ends.

The Department may take other actions reasonably required

to implement the provisions of this Act, including the adoption

of rules and emergency rules and the procurement of goods and

services, which also may be coordinated jointly with other

states.



Section 5-20. Provision of databases. The Department

shall, no later than July 1, 2020:

(1) provide and maintain an electronic, downloadable

database of defined product categories that identifies the

taxability of each category;

(2) provide and maintain an electronic, downloadable

database of all retailers' occupation tax rates for the

jurisdictions in this State that levy a retailers'

occupation tax; and

(3) provide and maintain an electronic, downloadable

database that assigns delivery addresses in this State to

the applicable taxing jurisdictions.



Section 5-25. Certification. The Department shall, no

later than July 1, 2020:

(1) provide uniform minimum standards that companies

wishing to be designated as a certified service provider in

this State must meet; those minimum standards must include

an expedited certification process for companies that have

been certified in at least 5 other states;

(2) provide uniform minimum standards that certified

automated systems must meet; those minimum standards may

include an expedited certification process for automated

systems that have been certified in at least 5 other

states;

(3) establish a certification process to review the

systems of companies wishing to be designated as a

certified service provider in this State or of companies

wishing to use a certified automated process; this

certification process shall provide that companies that

meet all required standards and whose systems have been

tested and approved by the Department for properly

determining the taxability of items to be sold, the correct

tax rate to apply to a transaction, and the appropriate

jurisdictions to which the tax shall be remitted, shall be

certified;

(4) enter into a contractual relationship with each

company that qualifies as a certified service provider or

that will be using a certified automated system; those

contracts shall, at a minimum, provide:

(A) the responsibilities of the certified service

provider and the remote retailers that contract with

the certified service provider or the user of a

certified automated system related to liability for

proper collection and remittance of use and occupation

taxes;

(B) the responsibilities of the certified service

provider and the remote retailers that contract with

the certified service provider or the user of a

certified service provider related to record keeping

and auditing;

(C) for the protection and confidentiality of tax

information; and

(D) compensation equal to 1.75% of the tax dollars

collected and remitted to the State by a certified

service provider on a timely basis on behalf of remote

retailers; remote retailers using a certified service

provider may not claim the vendor's discount allowed

under the Retailers' Occupation Tax Act or the Service

Occupation Tax Act.

The provisions of this Section shall supersede the

provisions of the Illinois Procurement Code.



Section 5-30. Relief from liability. Beginning January 1,

2020, remote retailers using certified service providers or

certified automated systems and their certified service

providers or certified automated systems providers are

relieved from liability to the State for having charged and

collected the incorrect amount of use or occupation tax

resulting from a certified service provider or certified

automated system relying, at the time of the sale, on: (1)

erroneous data provided by the State in database files on tax

rates, boundaries, or taxing jurisdictions; or (2) erroneous

data provided by the State concerning the taxability of

products and services.

The Department shall, to the best of its ability, assign

addresses to the proper local taxing jurisdiction using a

9-digit zip code identifier. On an annual basis, the Department

shall make available to local taxing jurisdictions the taxing

jurisdiction boundaries determined by the Department for their

verification. If a jurisdiction fails to verify their taxing

jurisdiction boundaries to the Department in any given year,

the Department shall assign retailers' occupation tax revenue

from remote retail sales based on its best information. In that

case, tax revenues from remote retail sales remitted to a

taxing jurisdiction based on erroneous local tax boundary

information will be assigned to the correct taxing jurisdiction

on a prospective basis upon notice of the boundary error from a

local taxing jurisdiction. No certified service provider or

remote retailer using a certified automated system shall be

subject to a class action brought on behalf of customers and

arising from, or in any way related to, an overpayment of

retailers' occupation tax collected by the certified service

provider if, at the time of the sale, they relied on

information provided by the Department, regardless of whether

that claim is characterized as a tax refund claim. Nothing in

this Section affects a customer's right to seek a refund from

the remote retailer as provided in this Act.



Section 5-97. Severability. The provisions of this Act are

severable under Section 1.31 of the Statute on Statutes.



Article 10. Parking Excise Tax Act



→ This increases the amount of taxes you pay when you park your car, or, as the bill says, “the gross amount of consideration for the use or privilege of parking a motor vehicle in or upon any parking lot or garage in the State.”

Section 10-1. Short title. This Article may be cited as the

Parking Excise Tax Act. References in this Article to "this

Act" mean this Article.



Section 10-5. Definitions.

"Booking intermediary" means any person or entity that

facilitates the processing and fulfillment of reservation

transactions between an operator and a person or entity

desiring parking in a parking lot or garage of that operator.

"Charge or fee paid for parking" means the gross amount of

consideration for the use or privilege of parking a motor

vehicle in or upon any parking lot or garage in the State,

collected by an operator and valued in money, whether received

in money or otherwise, including cash, credits, property, and

services, determined without any deduction for costs or

expenses, but not including charges that are added to the

charge or fee on account of the tax imposed by this Act or on

account of any other tax imposed on the charge or fee. "Charge

or fee paid for parking" excludes separately stated charges not

for the use or privilege or parking and excludes amounts

retained by or paid to a booking intermediary for services

provided by the booking intermediary. If any separately stated

charge is not optional, it shall be presumed that it is part of

the charge for the use or privilege or parking.

"Department" means the Department of Revenue.

"Operator" means any person who engages in the business of

operating a parking area or garage, or who, directly or through

an agreement or arrangement with another party, collects the

consideration for parking or storage of motor vehicles,

recreational vehicles, or other self-propelled vehicles, at

that parking place. This includes, but is not limited to, any

facilitator or aggregator that collects from the purchaser the

charge or fee paid for parking. "Operator" does not include a

bank, credit card company, payment processor, booking

intermediary, or person whose involvement is limited to

performing functions that are similar to those performed by a

bank, credit card company, payment processor, or booking

intermediary.

"Parking area or garage" means any real estate, building,

structure, premises, enclosure or other place, whether

enclosed or not, except a public way, within the State, where

motor vehicles, recreational vehicles, or other self-propelled

vehicles, are stored, housed or parked for hire, charge, fee or

other valuable consideration in a condition ready for use, or

where rent or compensation is paid to the owner, manager,

operator or lessee of the premises for the housing, storing,

sheltering, keeping or maintaining motor vehicles,

recreational vehicles, or other self-propelled vehicles.

"Parking area or garage" includes any parking area or garage,

whether the vehicle is parked by the owner of the vehicle or by

the operator or an attendant.

"Person" means any natural individual, firm, trust,

estate, partnership, association, joint stock company, joint

venture, corporation, limited liability company, or a

receiver, trustee, guardian, or other representative appointed

by order of any court.

"Purchase price" means the consideration paid for the

purchase of a parking space in a parking area or garage, valued

in money, whether received in money or otherwise, including

cash, gift cards, credits, and property, and shall be

determined without any deduction on account of the cost of

materials used, labor or service costs, or any other expense

whatsoever.

"Purchase price" includes any and all charges that the

recipient pays related to or incidental to obtaining the use or

privilege of using a parking space in a parking area or garage,

including but not limited to any and all related markups,

service fees, convenience fees, facilitation fees,

cancellation fees, overtime fees, or other such charges,

regardless of terminology. However, "purchase price" shall not

include consideration paid for:

(1) optional, separately stated charges not for the use

or privilege of using a parking space in the parking area

or garage;

(2) any charge for a dishonored check;

(3) any finance or credit charge, penalty or charge for

delayed payment, or discount for prompt payment;

(4) any purchase by a purchaser if the operator is

prohibited by federal or State Constitution, treaty,

convention, statute or court decision from collecting the

tax from such purchaser;

(5) the isolated or occasional sale of parking spaces

subject to tax under this Act by a person who does not hold

himself out as being engaged (or who does not habitually

engage) in selling of parking spaces; and

(6) any amounts added to a purchaser's bills because of

charges made pursuant to the tax imposed by this Act. If

credit is extended, then the amount thereof shall be

included only as and when payments are made.

"Purchaser" means any person who acquires a parking space

in a parking area or garage for use for valuable consideration.

"Use" means the exercise by any person of any right or

power over, or the enjoyment of, a parking space in a parking

area or garage subject to tax under this Act.



Section 10-10. Imposition of tax; calculation of tax.

(a) Beginning on January 1, 2020, a tax is imposed on the

privilege of using in this State a parking space in a parking

area or garage for the use of parking one or more motor

vehicles, recreational vehicles, or other self-propelled

vehicles, at the rate of:

(1) 6% of the purchase price for a parking space paid

for on an hourly, daily, or weekly basis; and

(2) 9% of the purchase price for a parking space paid

for on a monthly or annual basis.

(b) The tax shall be collected from the purchaser by the

operator.

(c) An operator that has paid or remitted the tax imposed

by this Act to another operator in connection with the same

parking transaction, or the use of the same parking space, that

is subject to tax under this Act, shall be entitled to a credit

for such tax paid or remitted against the amount of tax owed

under this Act, provided that the other operator is registered

under this Act. The operator claiming the credit shall have the

burden of proving it is entitled to claim a credit.

(d) If any operator erroneously collects tax or collects

more from the purchaser than the purchaser's liability for the

transaction, the purchaser shall have a legal right to claim a

refund of such amount from the operator. However, if such

amount is not refunded to the purchaser for any reason, the

operator is liable to pay such amount to the Department.

(e) The tax imposed by this Section is not imposed with

respect to any transaction in interstate commerce, to the

extent that the transaction may not, under the Constitution and

statutes of the United States, be made the subject of taxation

by this State.



Section 10-15. Filing of returns and deposit of proceeds.

On or before the last day of each calendar month, every

operator engaged in the business of providing to purchasers

parking areas and garages in this State during the preceding

calendar month shall file a return with the Department,

stating:

(1) the name of the operator;

(2) the address of its principal place of business and

the address of the principal place of business from which

it provides parking areas and garages in this State;

(3) the total amount of receipts received by the

operator during the preceding calendar month or quarter, as

the case may be, from sales of parking spaces to purchasers

in parking areas or garages during the preceding calendar

month or quarter;

(4) deductions allowed by law;

(5) the total amount of receipts received by the

operator during the preceding calendar month or quarter

upon which the tax was computed;

(6) the amount of tax due; and

(7) such other reasonable information as the

Department may require.

If an operator ceases to engage in the kind of business

that makes it responsible for filing returns under this Act,

then that operator shall file a final return under this Act

with the Department on or before the last day of the month

after discontinuing such business.

All returns required to be filed and payments required to

be made under this Act shall be by electronic means. Taxpayers

who demonstrate hardship in filing or paying electronically may

petition the Department to waive the electronic filing or

payment requirement, or both. The Department may require a

separate return for the tax under this Act or combine the

return for the tax under this Act with the return for other

taxes.

If the same person has more than one business registered

with the Department under separate registrations under this

Act, that person shall not file each return that is due as a

single return covering all such registered businesses but shall

file separate returns for each such registered business.

If the operator is a corporation, the return filed on

behalf of that corporation shall be signed by the president,

vice-president, secretary, or treasurer, or by a properly

accredited agent of such corporation.

The operator filing the return under this Act shall, at the

time of filing the return, pay to the Department the amount of

tax imposed by this Act less a discount of 1.75%, not to exceed

$1,000 per month, which is allowed to reimburse the operator

for the expenses incurred in keeping records, preparing and

filing returns, remitting the tax, and supplying data to the

Department on request.

If any payment provided for in this Section exceeds the

taxpayer's liabilities under this Act, as shown on an original

return, the Department may authorize the taxpayer to credit

such excess payment against liability subsequently to be

remitted to the Department under this Act, in accordance with

reasonable rules adopted by the Department. If the Department

subsequently determines that all or any part of the credit

taken was not actually due to the taxpayer, the taxpayer's

discount shall be reduced by an amount equal to the difference

between the discount as applied to the credit taken and that

actually due, and that taxpayer shall be liable for penalties

and interest on such difference.



Section 10-20. Exemptions. The tax imposed by this Act

shall not apply to:

(1) parking in a parking area or garage operated by the

federal government or its instrumentalities that has been

issued an active tax exemption number by the Department

under Section 1g of the Retailers' Occupation Tax Act; for

this exemption to apply, the parking area or garage must be

operated by the federal government or its

instrumentalities; the exemption under this paragraph (1)

does not apply if the parking area or garage is operated by

a third party, whether under a lease or other contractual

arrangement, or any other manner whatsoever;

(2) residential off-street parking for home or

apartment tenants or condominium occupants, if the

arrangement for such parking is provided in the home or

apartment lease or in a separate writing between the

landlord and tenant, or in a condominium agreement between

the condominium association and the owner, occupant, or

guest of a unit, whether the parking charge is payable to

the landlord, condominium association, or to the operator

of the parking spaces;

(3) parking by hospital employees in a parking space

that is owned and operated by the hospital for which they

work; and

(4) parking in a parking area or garage where 3 or

fewer motor vehicles are stored, housed, or parked for

hire, charge, fee or other valuable consideration, if the

operator of the parking area or garage does not act as the

operator of more than a total of 3 parking spaces located

in the State; if any operator of parking areas or garages,

including any facilitator or aggregator, acts as an

operator of more than 3 parking spaces in total that are

located in the State, then this exemption shall not apply

to any of those spaces.



Section 10-25. Collection of tax.

(a) Beginning with bills issued or charges collected for a

purchase of a parking space in a parking area or garage on and

after January 1, 2020, the tax imposed by this Act shall be

collected from the purchaser by the operator at the rate stated

in Section 10-10 and shall be remitted to the Department as

provided in this Act. All charges for parking spaces in a

parking area or garage are presumed subject to tax collection.

Operators shall collect the tax from purchasers by adding the

tax to the amount of the purchase price received from the

purchaser. The tax imposed by the Act shall when collected be

stated as a distinct item separate and apart from the purchase

price of the service subject to tax under this Act. However,

where it is not possible to state the tax separately the

Department may by rule exempt such purchases from this

requirement so long as purchasers are notified by language on

the invoice or notified by a sign that the tax is included in

the purchase price.

(b) Any person purchasing a parking space in a parking area

or garage subject to tax under this Act as to which there has

been no charge made to him of the tax imposed by Section 10-10,

shall make payment of the tax imposed by Section 10-10 of this

Act in the form and manner provided by the Department, such

payment to be made to the Department in the manner and form

required by the Department not later than the 20th day of the

month following the month of purchase of the parking space.



Section 10-30. Registration of operators.

(a) A person who engages in business as an operator of a

parking area or garage in this State shall register with the

Department. Application for a certificate of registration

shall be made to the Department, by electronic means, in the

form and manner prescribed by the Department and shall contain

any reasonable information the Department may require. Upon

receipt of the application for a certificate of registration in

proper form and manner, the Department shall issue to the

applicant a certificate of registration. Operators who

demonstrate that they do not have access to the Internet or

demonstrate hardship in applying electronically may petition

the Department to waive the electronic application

requirements.

(b) The Department may refuse to issue or reissue a

certificate of registration to any applicant for the reasons

set forth in Section 2505-380 of the Department of Revenue Law

of the Civil Administrative Code of Illinois.

(c) Any person aggrieved by any decision of the Department

under this Section may, within 20 days after notice of such

decision, protest and request a hearing, whereupon the

Department shall give notice to such person of the time and

place fixed for such hearing and shall hold a hearing in

conformity with the provisions of this Act and then issue its

final administrative decision in the matter to such person. In

the absence of such a protest within 20 days, the Department's

decision shall become final without any further determination

being made or notice given.



Section 10-35. Revocation of certificate of registration.

(a) The Department may, after notice and a hearing as

provided in this Act, revoke the certificate of registration of

any operator who violates any of the provisions of this Act or

any rule adopted pursuant to this Act. Before revocation of a

certificate of registration, the Department shall, within 90

days after non-compliance and at least 7 days prior to the date

of the hearing, give the operator so accused notice in writing

of the charge against him or her, and on the date designated

shall conduct a hearing upon this matter. The lapse of such

90-day period shall not preclude the Department from conducting

revocation proceedings at a later date if necessary. Any

hearing held under this Section shall be conducted by the

Director or by any officer or employee of the Department

designated in writing by the Director.

(b) The Department may revoke a certificate of registration

for the reasons set forth in Section 2505-380 of the Department

of Revenue Law of the Civil Administrative Code of Illinois.

(c) Upon the hearing of any such proceeding, the Director

or any officer or employee of the Department designated in

writing by the Director may administer oaths, and the

Department may procure by its subpoena the attendance of

witnesses and, by its subpoena duces tecum, the production of

relevant books and papers. Any circuit court, upon application

either of the operator or of the Department, may, by order duly

entered, require the attendance of witnesses and the production

of relevant books and papers before the Department in any

hearing relating to the revocation of certificates of

registration. Upon refusal or neglect to obey the order of the

court, the court may compel obedience thereof by proceedings

for contempt.

(d) The Department may, by application to any circuit

court, obtain an injunction requiring any person who engages in

business as an operator under this Act to obtain a certificate

of registration. Upon refusal or neglect to obey the order of

the court, the court may compel obedience by proceedings for

contempt.



Section 10-40. Valet services.

(a) Persons engaged in the business of providing valet

services are subject to the tax imposed by this Act on the

purchase price received in connection with their valet parking

operations.

(b) Persons engaged in the business of providing valet

services are entitled to take the credit in subsection (c) of

Section 10-10.

(c) Tips received by persons parking cars for persons

engaged in the business of providing valet services are not

subject to the tax imposed by this Act if the tips are retained

by the person receiving the tip. If the tips are turned over to

the valet business, the tips shall be included in the purchase

price.



Section 10-45. Tax collected as debt owed to State. The tax

herein required to be collected by any operator or valet

business and any such tax collected by that person, shall

constitute a debt owed by that person to this State.



Section 10-50. Incorporation by reference. All of the

provisions of Sections 1, 2a, 2b, 3 (except provisions relating

to transaction returns and except for provisions that are

inconsistent with this Act), in respect to all provisions

therein other than the State rate of tax) 4, 5, 5a, 5b, 5c, 5d,

5e, 5f, 5g, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and

13 of the Retailers' Occupation Tax Act that are not

inconsistent with this Act, and all provisions of the Uniform

Penalty and Interest Act shall apply, as far as practicable, to

the subject matter of this Act to the same extent as if such

provisions were included in this Act.



Section 10-55. Deposit of proceeds from parking excise tax.

The moneys received by the Department from the tax imposed by

this Act shall be deposited into the Capital Projects Fund.



Article 15. Amendatory Provisions



→ This allows the Illinois Gaming Board and other agencies to make changes to the rules they use to regulate gambling so that they comply with other provisions of the bill. There could be some interesting stuff in here, but we haven’t had time to absorb it yet.

Section 15-5. The Illinois Administrative Procedure Act is

amended by changing Section 5-45 as follows:



(5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)

Sec. 5-45. Emergency rulemaking.

(a) "Emergency" means the existence of any situation that

any agency finds reasonably constitutes a threat to the public

interest, safety, or welfare.

(b) If any agency finds that an emergency exists that

requires adoption of a rule upon fewer days than is required by

Section 5-40 and states in writing its reasons for that

finding, the agency may adopt an emergency rule without prior

notice or hearing upon filing a notice of emergency rulemaking

with the Secretary of State under Section 5-70. The notice

shall include the text of the emergency rule and shall be

published in the Illinois Register. Consent orders or other

court orders adopting settlements negotiated by an agency may

be adopted under this Section. Subject to applicable

constitutional or statutory provisions, an emergency rule

becomes effective immediately upon filing under Section 5-65 or

at a stated date less than 10 days thereafter. The agency's

finding and a statement of the specific reasons for the finding

shall be filed with the rule. The agency shall take reasonable

and appropriate measures to make emergency rules known to the

persons who may be affected by them.

(c) An emergency rule may be effective for a period of not

longer than 150 days, but the agency's authority to adopt an

identical rule under Section 5-40 is not precluded. No

emergency rule may be adopted more than once in any 24-month

period, except that this limitation on the number of emergency

rules that may be adopted in a 24-month period does not apply

to (i) emergency rules that make additions to and deletions

from the Drug Manual under Section 5-5.16 of the Illinois

Public Aid Code or the generic drug formulary under Section

3.14 of the Illinois Food, Drug and Cosmetic Act, (ii)

emergency rules adopted by the Pollution Control Board before

July 1, 1997 to implement portions of the Livestock Management

Facilities Act, (iii) emergency rules adopted by the Illinois

Department of Public Health under subsections (a) through (i)

of Section 2 of the Department of Public Health Act when

necessary to protect the public's health, (iv) emergency rules

adopted pursuant to subsection (n) of this Section, (v)

emergency rules adopted pursuant to subsection (o) of this

Section, or (vi) emergency rules adopted pursuant to subsection

(c-5) of this Section. Two or more emergency rules having

substantially the same purpose and effect shall be deemed to be

a single rule for purposes of this Section.

(c-5) To facilitate the maintenance of the program of group

health benefits provided to annuitants, survivors, and retired

employees under the State Employees Group Insurance Act of

1971, rules to alter the contributions to be paid by the State,

annuitants, survivors, retired employees, or any combination

of those entities, for that program of group health benefits,

shall be adopted as emergency rules. The adoption of those

rules shall be considered an emergency and necessary for the

public interest, safety, and welfare.

(d) In order to provide for the expeditious and timely

implementation of the State's fiscal year 1999 budget,

emergency rules to implement any provision of Public Act 90-587

or 90-588 or any other budget initiative for fiscal year 1999

may be adopted in accordance with this Section by the agency

charged with administering that provision or initiative,

except that the 24-month limitation on the adoption of

emergency rules and the provisions of Sections 5-115 and 5-125

do not apply to rules adopted under this subsection (d). The

adoption of emergency rules authorized by this subsection (d)

shall be deemed to be necessary for the public interest,

safety, and welfare.

(e) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2000 budget,

emergency rules to implement any provision of Public Act 91-24

or any other budget initiative for fiscal year 2000 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (e). The adoption of

emergency rules authorized by this subsection (e) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(f) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2001 budget,

emergency rules to implement any provision of Public Act 91-712

or any other budget initiative for fiscal year 2001 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (f). The adoption of

emergency rules authorized by this subsection (f) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(g) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2002 budget,

emergency rules to implement any provision of Public Act 92-10

or any other budget initiative for fiscal year 2002 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (g). The adoption of

emergency rules authorized by this subsection (g) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(h) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2003 budget,

emergency rules to implement any provision of Public Act 92-597

or any other budget initiative for fiscal year 2003 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (h). The adoption of

emergency rules authorized by this subsection (h) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(i) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2004 budget,

emergency rules to implement any provision of Public Act 93-20

or any other budget initiative for fiscal year 2004 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (i). The adoption of

emergency rules authorized by this subsection (i) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(j) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2005 budget as provided under the Fiscal Year 2005 Budget

Implementation (Human Services) Act, emergency rules to

implement any provision of the Fiscal Year 2005 Budget

Implementation (Human Services) Act may be adopted in

accordance with this Section by the agency charged with

administering that provision, except that the 24-month

limitation on the adoption of emergency rules and the

provisions of Sections 5-115 and 5-125 do not apply to rules

adopted under this subsection (j). The Department of Public Aid

may also adopt rules under this subsection (j) necessary to

administer the Illinois Public Aid Code and the Children's

Health Insurance Program Act. The adoption of emergency rules

authorized by this subsection (j) shall be deemed to be

necessary for the public interest, safety, and welfare.

(k) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2006 budget, emergency rules to implement any provision of

Public Act 94-48 or any other budget initiative for fiscal year

2006 may be adopted in accordance with this Section by the

agency charged with administering that provision or

initiative, except that the 24-month limitation on the adoption

of emergency rules and the provisions of Sections 5-115 and

5-125 do not apply to rules adopted under this subsection (k).

The Department of Healthcare and Family Services may also adopt

rules under this subsection (k) necessary to administer the

Illinois Public Aid Code, the Senior Citizens and Persons with

Disabilities Property Tax Relief Act, the Senior Citizens and

Disabled Persons Prescription Drug Discount Program Act (now

the Illinois Prescription Drug Discount Program Act), and the

Children's Health Insurance Program Act. The adoption of

emergency rules authorized by this subsection (k) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(l) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2007 budget, the Department of Healthcare and Family Services

may adopt emergency rules during fiscal year 2007, including

rules effective July 1, 2007, in accordance with this

subsection to the extent necessary to administer the

Department's responsibilities with respect to amendments to

the State plans and Illinois waivers approved by the federal

Centers for Medicare and Medicaid Services necessitated by the

requirements of Title XIX and Title XXI of the federal Social

Security Act. The adoption of emergency rules authorized by

this subsection (l) shall be deemed to be necessary for the

public interest, safety, and welfare.

(m) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2008 budget, the Department of Healthcare and Family Services

may adopt emergency rules during fiscal year 2008, including

rules effective July 1, 2008, in accordance with this

subsection to the extent necessary to administer the

Department's responsibilities with respect to amendments to

the State plans and Illinois waivers approved by the federal

Centers for Medicare and Medicaid Services necessitated by the

requirements of Title XIX and Title XXI of the federal Social

Security Act. The adoption of emergency rules authorized by

this subsection (m) shall be deemed to be necessary for the

public interest, safety, and welfare.

(n) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2010 budget, emergency rules to implement any provision of

Public Act 96-45 or any other budget initiative authorized by

the 96th General Assembly for fiscal year 2010 may be adopted

in accordance with this Section by the agency charged with

administering that provision or initiative. The adoption of

emergency rules authorized by this subsection (n) shall be

deemed to be necessary for the public interest, safety, and

welfare. The rulemaking authority granted in this subsection

(n) shall apply only to rules promulgated during Fiscal Year

2010.

(o) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2011 budget, emergency rules to implement any provision of

Public Act 96-958 or any other budget initiative authorized by

the 96th General Assembly for fiscal year 2011 may be adopted

in accordance with this Section by the agency charged with

administering that provision or initiative. The adoption of

emergency rules authorized by this subsection (o) is deemed to

be necessary for the public interest, safety, and welfare. The

rulemaking authority granted in this subsection (o) applies

only to rules promulgated on or after July 1, 2010 (the

effective date of Public Act 96-958) through June 30, 2011.

(p) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 97-689,

emergency rules to implement any provision of Public Act 97-689

may be adopted in accordance with this subsection (p) by the

agency charged with administering that provision or

initiative. The 150-day limitation of the effective period of

emergency rules does not apply to rules adopted under this

subsection (p), and the effective period may continue through

June 30, 2013. The 24-month limitation on the adoption of

emergency rules does not apply to rules adopted under this

subsection (p). The adoption of emergency rules authorized by

this subsection (p) is deemed to be necessary for the public

interest, safety, and welfare.

(q) In order to provide for the expeditious and timely

implementation of the provisions of Articles 7, 8, 9, 11, and

12 of Public Act 98-104, emergency rules to implement any

provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104

may be adopted in accordance with this subsection (q) by the

agency charged with administering that provision or

initiative. The 24-month limitation on the adoption of

emergency rules does not apply to rules adopted under this

subsection (q). The adoption of emergency rules authorized by

this subsection (q) is deemed to be necessary for the public

interest, safety, and welfare.

(r) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 98-651,

emergency rules to implement Public Act 98-651 may be adopted

in accordance with this subsection (r) by the Department of

Healthcare and Family Services. The 24-month limitation on the

adoption of emergency rules does not apply to rules adopted

under this subsection (r). The adoption of emergency rules

authorized by this subsection (r) is deemed to be necessary for

the public interest, safety, and welfare.

(s) In order to provide for the expeditious and timely

implementation of the provisions of Sections 5-5b.1 and 5A-2 of

the Illinois Public Aid Code, emergency rules to implement any

provision of Section 5-5b.1 or Section 5A-2 of the Illinois

Public Aid Code may be adopted in accordance with this

subsection (s) by the Department of Healthcare and Family

Services. The rulemaking authority granted in this subsection

(s) shall apply only to those rules adopted prior to July 1,

2015. Notwithstanding any other provision of this Section, any

emergency rule adopted under this subsection (s) shall only

apply to payments made for State fiscal year 2015. The adoption

of emergency rules authorized by this subsection (s) is deemed

to be necessary for the public interest, safety, and welfare.

(t) In order to provide for the expeditious and timely

implementation of the provisions of Article II of Public Act

99-6, emergency rules to implement the changes made by Article

II of Public Act 99-6 to the Emergency Telephone System Act may

be adopted in accordance with this subsection (t) by the

Department of State Police. The rulemaking authority granted in

this subsection (t) shall apply only to those rules adopted

prior to July 1, 2016. The 24-month limitation on the adoption

of emergency rules does not apply to rules adopted under this

subsection (t). The adoption of emergency rules authorized by

this subsection (t) is deemed to be necessary for the public

interest, safety, and welfare.

(u) In order to provide for the expeditious and timely

implementation of the provisions of the Burn Victims Relief

Act, emergency rules to implement any provision of the Act may

be adopted in accordance with this subsection (u) by the

Department of Insurance. The rulemaking authority granted in

this subsection (u) shall apply only to those rules adopted

prior to December 31, 2015. The adoption of emergency rules

authorized by this subsection (u) is deemed to be necessary for

the public interest, safety, and welfare.

(v) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 99-516,

emergency rules to implement Public Act 99-516 may be adopted

in accordance with this subsection (v) by the Department of

Healthcare and Family Services. The 24-month limitation on the

adoption of emergency rules does not apply to rules adopted

under this subsection (v). The adoption of emergency rules

authorized by this subsection (v) is deemed to be necessary for

the public interest, safety, and welfare.

(w) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 99-796,

emergency rules to implement the changes made by Public Act

99-796 may be adopted in accordance with this subsection (w) by

the Adjutant General. The adoption of emergency rules

authorized by this subsection (w) is deemed to be necessary for

the public interest, safety, and welfare.

(x) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 99-906,

emergency rules to implement subsection (i) of Section 16-115D,

subsection (g) of Section 16-128A, and subsection (a) of

Section 16-128B of the Public Utilities Act may be adopted in

accordance with this subsection (x) by the Illinois Commerce

Commission. The rulemaking authority granted in this

subsection (x) shall apply only to those rules adopted within

180 days after June 1, 2017 (the effective date of Public Act

99-906). The adoption of emergency rules authorized by this

subsection (x) is deemed to be necessary for the public

interest, safety, and welfare.

(y) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-23,

emergency rules to implement the changes made by Public Act

100-23 to Section 4.02 of the Illinois Act on the Aging,

Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,

Section 55-30 of the Alcoholism and Other Drug Abuse and

Dependency Act, and Sections 74 and 75 of the Mental Health and

Developmental Disabilities Administrative Act may be adopted

in accordance with this subsection (y) by the respective

Department. The adoption of emergency rules authorized by this

subsection (y) is deemed to be necessary for the public

interest, safety, and welfare.

(z) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-554,

emergency rules to implement the changes made by Public Act

100-554 to Section 4.7 of the Lobbyist Registration Act may be

adopted in accordance with this subsection (z) by the Secretary

of State. The adoption of emergency rules authorized by this

subsection (z) is deemed to be necessary for the public

interest, safety, and welfare.

(aa) In order to provide for the expeditious and timely

initial implementation of the changes made to Articles 5, 5A,

12, and 14 of the Illinois Public Aid Code under the provisions

of Public Act 100-581, the Department of Healthcare and Family

Services may adopt emergency rules in accordance with this

subsection (aa). The 24-month limitation on the adoption of

emergency rules does not apply to rules to initially implement

the changes made to Articles 5, 5A, 12, and 14 of the Illinois

Public Aid Code adopted under this subsection (aa). The

adoption of emergency rules authorized by this subsection (aa)

is deemed to be necessary for the public interest, safety, and

welfare.

(bb) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-587,

emergency rules to implement the changes made by Public Act

100-587 to Section 4.02 of the Illinois Act on the Aging,

Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,

subsection (b) of Section 55-30 of the Alcoholism and Other

Drug Abuse and Dependency Act, Section 5-104 of the Specialized

Mental Health Rehabilitation Act of 2013, and Section 75 and

subsection (b) of Section 74 of the Mental Health and

Developmental Disabilities Administrative Act may be adopted

in accordance with this subsection (bb) by the respective

Department. The adoption of emergency rules authorized by this

subsection (bb) is deemed to be necessary for the public

interest, safety, and welfare.

(cc) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-587,

emergency rules may be adopted in accordance with this

subsection (cc) to implement the changes made by Public Act

100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois

Pension Code by the Board created under Article 14 of the Code;

Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by

the Board created under Article 15 of the Code; and Sections

16-190.5 and 16-190.6 of the Illinois Pension Code by the Board

created under Article 16 of the Code. The adoption of emergency

rules authorized by this subsection (cc) is deemed to be

necessary for the public interest, safety, and welfare.

(dd) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-864,

emergency rules to implement the changes made by Public Act

100-864 to Section 3.35 of the Newborn Metabolic Screening Act

may be adopted in accordance with this subsection (dd) by the

Secretary of State. The adoption of emergency rules authorized

by this subsection (dd) is deemed to be necessary for the

public interest, safety, and welfare.

(ee) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-1172 this

amendatory Act of the 100th General Assembly , emergency rules

implementing the Illinois Underground Natural Gas Storage

Safety Act may be adopted in accordance with this subsection by

the Department of Natural Resources. The adoption of emergency

rules authorized by this subsection is deemed to be necessary

for the public interest, safety, and welfare.

(ff) (ee) In order to provide for the expeditious and

timely initial implementation of the changes made to Articles

5A and 14 of the Illinois Public Aid Code under the provisions

of Public Act 100-1181 this amendatory Act of the 100th General

Assembly , the Department of Healthcare and Family Services may

on a one-time-only basis adopt emergency rules in accordance

with this subsection (ff) (ee) . The 24-month limitation on the

adoption of emergency rules does not apply to rules to

initially implement the changes made to Articles 5A and 14 of

the Illinois Public Aid Code adopted under this subsection (ff)

(ee) . The adoption of emergency rules authorized by this

subsection (ff) (ee) is deemed to be necessary for the public

interest, safety, and welfare.

(gg) (ff) In order to provide for the expeditious and

timely implementation of the provisions of Public Act 101-1

this amendatory Act of the 101st General Assembly , emergency

rules may be adopted by the Department of Labor in accordance

with this subsection (gg) (ff) to implement the changes made by

Public Act 101-1 this amendatory Act of the 101st General

Assembly to the Minimum Wage Law. The adoption of emergency

rules authorized by this subsection (gg) (ff) is deemed to be

necessary for the public interest, safety, and welfare.

(hh) In order to provide for the expeditious and timely

implementation of the provisions of the Leveling the Playing

Field for Illinois Retail Act, emergency rules may be adopted

in accordance with this subsection (hh) to implement the

changes made by the Leveling the Playing Field for Illinois

Retail Act. The adoption of emergency rules authorized by this

subsection (hh) is deemed to be necessary for the public

interest, safety, and welfare.

(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;

100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.

6-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;

100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff.

3-8-19; 101-1, eff. 2-19-19; revised 4-2-19.)



Section 15-10. The Department of Commerce and Economic

Opportunity Law of the Civil Administrative Code of Illinois is

amended by adding Section 605-1025 as follows:



(20 ILCS 605/605-1025 new)

Sec. 605-1025. Data center investment.

(a) The Department shall issue certificates of exemption

from the Retailers' Occupation Tax Act, the Use Tax Act, the

Service Use Tax Act, and the Service Occupation Tax Act, all

locally-imposed retailers' occupation taxes administered and

collected by the Department, the Chicago non-titled Use Tax,

the Electricity Excise Tax Act, and a credit certification

against the taxes imposed under subsections (a) and (b) of

Section 201 of the Illinois Income Tax Act to qualifying

Illinois data centers.

(b) For taxable years beginning on or after January 1,

2019, the Department shall award credits against the taxes

imposed under subsections (a) and (b) of Section 201 of the

Illinois Income Tax Act as provided in Section 229 of the

Illinois Income Tax Act.

(c) For purposes of this Section:

"Data center" means a facility: (1) whose primary

services are the storage, management, and processing of

digital data; and (2) that is used to house (i) computer

and network systems, including associated components such

as servers, network equipment and appliances,

telecommunications, and data storage systems, (ii) systems

for monitoring and managing infrastructure performance,

(iii) Internet-related equipment and services, (iv) data

communications connections, (v) environmental controls,

(vi) fire protection systems, and (vii) security systems

and services.

"Qualifying Illinois data center" means a new or

existing data center that:

(1) is located in the State of Illinois;

(2) in the case of an existing data center, made a

capital investment of at least $250,000,000

collectively by the data center operator and the

tenants of all of its data centers over the 60-month

period immediately prior to January 1, 2020 or

committed to make a capital investment of at least

$250,000,000 over a 60-month period commencing before

January 1, 2020 and ending after January 1, 2020; or

(3) in the case of a new data center, makes a

capital investment of at least $250,000,000 over a

60-month period; and

(4) in the case of both existing and new data

centers, results in the creation of at least 20

full-time or full-time equivalent new jobs over a

period of 60 months by the data center operator and the

tenants of the data center, collectively, associated

with the operation or maintenance of the data center;

those jobs must have a total compensation equal to or

greater than 120% of the median wage paid to full-time

employees in the county where the data center is

located, as determined by the U.S. Bureau of Labor

Statistics; and

(5) is carbon neutral or attains certification

under one or more of the following green building

standards:

(A) BREEAM for New Construction or BREEAM

In-Use;

(B) ENERGY STAR;

(C) Envision;

(D) ISO 50001-energy management;

(E) LEED for Building Design and Construction

or LEED for Operations and Maintenance;

(F) Green Globes for New Construction or Green

Globes for Existing Buildings;

(G) UL 3223; or

(H) an equivalent program approved by the

Department of Commerce and Economic Opportunity.

"Full-time equivalent job" means a job in which the new

employee works for the owner, operator, contractor, or

tenant of a data center or for a corporation under contract

with the owner, operator or tenant of a data center at a

rate of at least 35 hours per week. An owner, operator or

tenant who employs labor or services at a specific site or

facility under contract with another may declare one

full-time, permanent job for every 1,820 man hours worked

per year under that contract. Vacations, paid holidays, and

sick time are included in this computation. Overtime is not

considered a part of regular hours.

"Qualified tangible personal property" means:

electrical systems and equipment; climate control and

chilling equipment and systems; mechanical systems and

equipment; monitoring and secure systems; emergency

generators; hardware; computers; servers; data storage

devices; network connectivity equipment; racks; cabinets;

telecommunications cabling infrastructure; raised floor

systems; peripheral components or systems; software;

mechanical, electrical, or plumbing systems; battery

systems; cooling systems and towers; temperature control

systems; other cabling; and other data center

infrastructure equipment and systems necessary to operate

qualified tangible personal property, including fixtures;

and component parts of any of the foregoing, including

installation, maintenance, repair, refurbishment, and

replacement of qualified tangible personal property to

generate, transform, transmit, distribute, or manage

electricity necessary to operate qualified tangible

personal property; and all other tangible personal

property that is essential to the operations of a computer

data center. "Qualified tangible personal property" also

includes building materials physically incorporated in to

the qualifying data center.

To document the exemption allowed under this Section, the

retailer must obtain from the purchaser a copy of the

certificate of eligibility issued by the Department.

(d) New and existing data centers seeking a certificate of

exemption for new or existing facilities shall apply to the

Department in the manner specified by the Department. The

Department shall determine the duration of the certificate of

exemption awarded under this Act. The duration of the

certificate of exemption may not exceed 20 calendar years. The

Department and any data center seeking the exemption, including

a data center operator on behalf of itself and its tenants,

must enter into a memorandum of understanding that at a minimum

provides:

(1) the details for determining the amount of capital

investment to be made;

(2) the number of new jobs created;

(3) the timeline for achieving the capital investment

and new job goals;

(4) the repayment obligation should those goals not be

achieved and any conditions under which repayment by the

qualifying data center or data center tenant claiming the

exemption will be required;

(5) the duration of the exemption; and

(6) other provisions as deemed necessary by the

Department.

(e) Beginning July 1, 2021, and each year thereafter, the

Department shall annually report to the Governor and the

General Assembly on the outcomes and effectiveness of this

amendatory Act of the 101st General Assembly that shall include

the following:

(1) the name of each recipient business;

(2) the location of the project;

(3) the estimated value of the credit;

(4) the number of new jobs and, if applicable, retained

jobs pledged as a result of the project; and

(5) whether or not the project is located in an

underserved area.

(f) New and existing data centers seeking a certificate of

exemption related to the rehabilitation or construction of data

centers in the State shall require the contractor and all

subcontractors to comply with the requirements of Section 30-22

of the Illinois Procurement Code as they apply to responsible

bidders and to present satisfactory evidence of that compliance

to the Department.

(g) New and existing data centers seeking a certificate of

exemption for the rehabilitation or construction of data

centers in the State shall require the contractor to enter into

a project labor agreement approved by the Department.

(h) Any qualifying data center issued a certificate of

exemption under this Section must annually report to the

Department the total data center tax benefits that are received

by the business. Reports are due no later than May 31 of each

year and shall cover the previous calendar year. The first

report is for the 2019 calendar year and is due no later than

May 31, 2020.

To the extent that a business issued a certificate of

exemption under this Section has obtained an Enterprise Zone

Building Materials Exemption Certificate or a High Impact

Business Building Materials Exemption Certificate, no

additional reporting for those building materials exemption

benefits is required under this Section.

Failure to file a report under this subsection (h) may

result in suspension or revocation of the certificate of

exemption. The Department shall adopt rules governing

suspension or revocation of the certificate of exemption,

including the length of suspension. Factors to be considered in

determining whether a data center certificate of exemption

shall be suspended or revoked include, but are not limited to,

prior compliance with the reporting requirements, cooperation

in discontinuing and correcting violations, the extent of the

violation, and whether the violation was willful or

inadvertent.

(i) The Department shall not issue any new certificates of

exemption under the provisions of this Section after July 1,

2029. This sunset shall not affect any existing certificates of

exemption in effect on July 1, 2029.



Section 15-20. The State Finance Act is amended by adding

Sections 5.891, 5.893, and 5.894 as follows:



(30 ILCS 105/5.891 new)

Sec. 5.891. The Transportation Renewal Fund.



(30 ILCS 105/5.893 new)

Sec. 5.893. The Regional Transportation Authority Capital

Improvement Fund.



(30 ILCS 105/5.894 new)

Sec. 5.894. The Downstate Mass Transportation Capital

Improvement Fund.



Section 15-25. The Illinois Income Tax Act is amended by

adding Section 229 as follows:



(35 ILCS 5/229 new)

Sec. 229. Data center construction employment tax credit.

(a) A taxpayer who has been awarded a credit by the

Department of Commerce and Economic Opportunity under Section

605-1025 of the Department of Commerce and Economic Opportunity

Law of the Civil Administrative Code of Illinois is entitled to

a credit against the taxes imposed under subsections (a) and

(b) of Section 201 of this Act. The amount of the credit shall

be 20% of the wages paid during the taxable year to a full-time

or part-time employee of a construction contractor employed by

a certified data center if those wages are paid for the

construction of a new data center in a geographic area that

meets any one of the following criteria:

(1) the area has a poverty rate of at least 20%,

according to the latest federal decennial census;

(2) 75% or more of the children in the area participate

in the federal free lunch program, according to reported

statistics from the State Board of Education;

(3) 20% or more of the households in the area receive

assistance under the Supplemental Nutrition Assistance

Program (SNAP); or

(4) the area has an average unemployment rate, as

determined by the Department of Employment Security, that

is more than 120% of the national unemployment average, as

determined by the U.S. Department of Labor, for a period of

at least 2 consecutive calendar years preceding the date of

the application.

If the taxpayer is a partnership, a Subchapter S

corporation, or a limited liability company that has elected

partnership tax treatment, the credit shall be allowed to the

partners, shareholders, or members in accordance with the

determination of income and distributive share of income under

Sections 702 and 704 and subchapter S of the Internal Revenue

Code, as applicable. The Department, in cooperation with the

Department of Commerce and Economic Opportunity, shall adopt

rules to enforce and administer this Section. This Section is

exempt from the provisions of Section 250 of this Act.

(b) In no event shall a credit under this Section reduce

the taxpayer's liability to less than zero. If the amount of

the credit exceeds the tax liability for the year, the excess

may be carried forward and applied to the tax liability of the

5 taxable years following the excess credit year. The tax

credit shall be applied to the earliest year for which there is

a tax liability. If there are credits for more than one year

that are available to offset a liability, the earlier credit

shall be applied first.

(c) No credit shall be allowed with respect to any

certification for any taxable year ending after the revocation

of the certification by the Department of Commerce and Economic

Opportunity. Upon receiving notification by the Department of

Commerce and Economic Opportunity of the revocation of

certification, the Department shall notify the taxpayer that no

credit is allowed for any taxable year ending after the

revocation date, as stated in such notification. If any credit

has been allowed with respect to a certification for a taxable

year ending after the revocation date, any refund paid to the

taxpayer for that taxable year shall, to the extent of that

credit allowed, be an erroneous refund within the meaning of

Section 912 of this Act.



Section 15-30. The Use Tax Act is amended by changing

Sections 2 and 3-5 as follows:



(35 ILCS 105/2) (from Ch. 120, par. 439.2)

Sec. 2. Definitions.

"Use" means the exercise by any person of any right or

power over tangible personal property incident to the ownership

of that property, except that it does not include the sale of

such property in any form as tangible personal property in the

regular course of business to the extent that such property is

not first subjected to a use for which it was purchased, and

does not include the use of such property by its owner for

demonstration purposes: Provided that the property purchased

is deemed to be purchased for the purpose of resale, despite

first being used, to the extent to which it is resold as an

ingredient of an intentionally produced product or by-product

of manufacturing. "Use" does not mean the demonstration use or

interim use of tangible personal property by a retailer before

he sells that tangible personal property. For watercraft or

aircraft, if the period of demonstration use or interim use by

the retailer exceeds 18 months, the retailer shall pay on the

retailers' original cost price the tax imposed by this Act, and

no credit for that tax is permitted if the watercraft or

aircraft is subsequently sold by the retailer. "Use" does not

mean the physical incorporation of tangible personal property,

to the extent not first subjected to a use for which it was

purchased, as an ingredient or constituent, into other tangible

personal property (a) which is sold in the regular course of

business or (b) which the person incorporating such ingredient

or constituent therein has undertaken at the time of such

purchase to cause to be transported in interstate commerce to

destinations outside the State of Illinois: Provided that the

property purchased is deemed to be purchased for the purpose of

resale, despite first being used, to the extent to which it is

resold as an ingredient of an intentionally produced product or

by-product of manufacturing.

"Watercraft" means a Class 2, Class 3, or Class 4

watercraft as defined in Section 3-2 of the Boat Registration

and Safety Act, a personal watercraft, or any boat equipped

with an inboard motor.

"Purchase at retail" means the acquisition of the ownership

of or title to tangible personal property through a sale at

retail.

"Purchaser" means anyone who, through a sale at retail,

acquires the ownership of tangible personal property for a

valuable consideration.

"Sale at retail" means any transfer of the ownership of or

title to tangible personal property to a purchaser, for the

purpose of use, and not for the purpose of resale in any form

as tangible personal property to the extent not first subjected

to a use for which it was purchased, for a valuable

consideration: Provided that the property purchased is deemed

to be purchased for the purpose of resale, despite first being

used, to the extent to which it is resold as an ingredient of

an intentionally produced product or by-product of

manufacturing. For this purpose, slag produced as an incident

to manufacturing pig iron or steel and sold is considered to be

an intentionally produced by-product of manufacturing. "Sale

at retail" includes any such transfer made for resale unless

made in compliance with Section 2c of the Retailers' Occupation

Tax Act, as incorporated by reference into Section 12 of this

Act. Transactions whereby the possession of the property is

transferred but the seller retains the title as security for

payment of the selling price are sales.

"Sale at retail" shall also be construed to include any

Illinois florist's sales transaction in which the purchase

order is received in Illinois by a florist and the sale is for

use or consumption, but the Illinois florist has a florist in

another state deliver the property to the purchaser or the

purchaser's donee in such other state.

Nonreusable tangible personal property that is used by

persons engaged in the business of operating a restaurant,

cafeteria, or drive-in is a sale for resale when it is

transferred to customers in the ordinary course of business as

part of the sale of food or beverages and is used to deliver,

package, or consume food or beverages, regardless of where

consumption of the food or beverages occurs. Examples of those

items include, but are not limited to nonreusable, paper and

plastic cups, plates, baskets, boxes, sleeves, buckets or other

containers, utensils, straws, placemats, napkins, doggie bags,

and wrapping or packaging materials that are transferred to

customers as part of the sale of food or beverages in the

ordinary course of business.

The purchase, employment and transfer of such tangible

personal property as newsprint and ink for the primary purpose

of conveying news (with or without other information) is not a

purchase, use or sale of tangible personal property.

"Selling price" means the consideration for a sale valued

in money whether received in money or otherwise, including

cash, credits, property other than as hereinafter provided, and

services, but , prior to January 1, 2020, not including the

value of or credit given for traded-in tangible personal

property where the item that is traded-in is of like kind and

character as that which is being sold ; beginning January 1,

2020, "selling price" includes the portion of the value of or

credit given for traded-in motor vehicles of the First Division

as defined in Section 1-146 of the Illinois Vehicle Code of

like kind and character as that which is being sold that

exceeds $10,000. "Selling price" , and shall be determined

without any deduction on account of the cost of the property

sold, the cost of materials used, labor or service cost or any

other expense whatsoever, but does not include interest or

finance charges which appear as separate items on the bill of

sale or sales contract nor charges that are added to prices by

sellers on account of the seller's tax liability under the

"Retailers' Occupation Tax Act", or on account of the seller's

duty to collect, from the purchaser, the tax that is imposed by

this Act, or, except as otherwise provided with respect to any

cigarette tax imposed by a home rule unit, on account of the

seller's tax liability under any local occupation tax

administered by the Department, or, except as otherwise

provided with respect to any cigarette tax imposed by a home

rule unit on account of the seller's duty to collect, from the

purchasers, the tax that is imposed under any local use tax

administered by the Department. Effective December 1, 1985,

"selling price" shall include charges that are added to prices

by sellers on account of the seller's tax liability under the

Cigarette Tax Act, on account of the seller's duty to collect,

from the purchaser, the tax imposed under the Cigarette Use Tax

Act, and on account of the seller's duty to collect, from the

purchaser, any cigarette tax imposed by a home rule unit.

Notwithstanding any law to the contrary, for any motor

vehicle, as defined in Section 1-146 of the Vehicle Code, that

is sold on or after January 1, 2015 for the purpose of leasing

the vehicle for a defined period that is longer than one year

and (1) is a motor vehicle of the second division that: (A) is

a self-contained motor vehicle designed or permanently

converted to provide living quarters for recreational,

camping, or travel use, with direct walk through access to the

living quarters from the driver's seat; (B) is of the van

configuration designed for the transportation of not less than

7 nor more than 16 passengers; or (C) has a gross vehicle

weight rating of 8,000 pounds or less or (2) is a motor vehicle

of the first division, "selling price" or "amount of sale"

means the consideration received by the lessor pursuant to the

lease contract, including amounts due at lease signing and all

monthly or other regular payments charged over the term of the

lease. Also included in the selling price is any amount

received by the lessor from the lessee for the leased vehicle

that is not calculated at the time the lease is executed,

including, but not limited to, excess mileage charges and

charges for excess wear and tear. For sales that occur in

Illinois, with respect to any amount received by the lessor

from the lessee for the leased vehicle that is not calculated

at the time the lease is executed, the lessor who purchased the

motor vehicle does not incur the tax imposed by the Use Tax Act

on those amounts, and the retailer who makes the retail sale of

the motor vehicle to the lessor is not required to collect the

tax imposed by this Act or to pay the tax imposed by the

Retailers' Occupation Tax Act on those amounts. However, the

lessor who purchased the motor vehicle assumes the liability

for reporting and paying the tax on those amounts directly to

the Department in the same form (Illinois Retailers' Occupation

Tax, and local retailers' occupation taxes, if applicable) in

which the retailer would have reported and paid such tax if the

retailer had accounted for the tax to the Department. For

amounts received by the lessor from the lessee that are not

calculated at the time the lease is executed, the lessor must

file the return and pay the tax to the Department by the due

date otherwise required by this Act for returns other than

transaction returns. If the retailer is entitled under this Act

to a discount for collecting and remitting the tax imposed

under this Act to the Department with respect to the sale of

the motor vehicle to the lessor, then the right to the discount

provided in this Act shall be transferred to the lessor with

respect to the tax paid by the lessor for any amount received

by the lessor from the lessee for the leased vehicle that is

not calculated at the time the lease is executed; provided that

the discount is only allowed if the return is timely filed and

for amounts timely paid. The "selling price" of a motor vehicle

that is sold on or after January 1, 2015 for the purpose of

leasing for a defined period of longer than one year shall not

be reduced by the value of or credit given for traded-in

tangible personal property owned by the lessor, nor shall it be

reduced by the value of or credit given for traded-in tangible

personal property owned by the lessee, regardless of whether

the trade-in value thereof is assigned by the lessee to the

lessor. In the case of a motor vehicle that is sold for the

purpose of leasing for a defined period of longer than one

year, the sale occurs at the time of the delivery of the

vehicle, regardless of the due date of any lease payments. A

lessor who incurs a Retailers' Occupation Tax liability on the

sale of a motor vehicle coming off lease may not take a credit

against that liability for the Use Tax the lessor paid upon the

purchase of the motor vehicle (or for any tax the lessor paid

with respect to any amount received by the lessor from the

lessee for the leased vehicle that was not calculated at the

time the lease was executed) if the selling price of the motor

vehicle at the time of purchase was calculated using the

definition of "selling price" as defined in this paragraph.

Notwithstanding any other provision of this Act to the

contrary, lessors shall file all returns and make all payments

required under this paragraph to the Department by electronic

means in the manner and form as required by the Department.

This paragraph does not apply to leases of motor vehicles for

which, at the time the lease is entered into, the term of the

lease is not a defined period, including leases with a defined

initial period with the option to continue the lease on a

month-to-month or other basis beyond the initial defined

period.

The phrase "like kind and character" shall be liberally

construed (including but not limited to any form of motor

vehicle for any form of motor vehicle, or any kind of farm or

agricultural implement for any other kind of farm or

agricultural implement), while not including a kind of item

which, if sold at retail by that retailer, would be exempt from

retailers' occupation tax and use tax as an isolated or

occasional sale.

"Department" means the Department of Revenue.

"Person" means any natural individual, firm, partnership,

association, joint stock company, joint adventure, public or

private corporation, limited liability company, or a receiver,

executor, trustee, guardian or other representative appointed

by order of any court.

"Retailer" means and includes every person engaged in the

business of making sales at retail as defined in this Section.

A person who holds himself or herself out as being engaged

(or who habitually engages) in selling tangible personal

property at retail is a retailer hereunder with respect to such

sales (and not primarily in a service occupation)

notwithstanding the fact that such person designs and produces

such tangible personal property on special order for the

purchaser and in such a way as to render the property of value

only to such purchaser, if such tangible personal property so

produced on special order serves substantially the same

function as stock or standard items of tangible personal

property that are sold at retail.

A person whose activities are organized and conducted

primarily as a not-for-profit service enterprise, and who

engages in selling tangible personal property at retail

(whether to the public or merely to members and their guests)

is a retailer with respect to such transactions, excepting only

a person organized and operated exclusively for charitable,

religious or educational purposes either (1), to the extent of

sales by such person to its members, students, patients or

inmates of tangible personal property to be used primarily for

the purposes of such person, or (2), to the extent of sales by

such person of tangible personal property which is not sold or

offered for sale by persons organized for profit. The selling

of school books and school supplies by schools at retail to

students is not "primarily for the purposes of" the school

which does such selling. This paragraph does not apply to nor

subject to taxation occasional dinners, social or similar

activities of a person organized and operated exclusively for

charitable, religious or educational purposes, whether or not

such activities are open to the public.

A person who is the recipient of a grant or contract under

Title VII of the Older Americans Act of 1965 (P.L. 92-258) and

serves meals to participants in the federal Nutrition Program

for the Elderly in return for contributions established in

amount by the individual participant pursuant to a schedule of

suggested fees as provided for in the federal Act is not a

retailer under this Act with respect to such transactions.

Persons who engage in the business of transferring tangible

personal property upon the redemption of trading stamps are

retailers hereunder when engaged in such business.

The isolated or occasional sale of tangible personal

property at retail by a person who does not hold himself out as

being engaged (or who does not habitually engage) in selling

such tangible personal property at retail or a sale through a

bulk vending machine does not make such person a retailer

hereunder. However, any person who is engaged in a business

which is not subject to the tax imposed by the "Retailers'

Occupation Tax Act" because of involving the sale of or a

contract to sell real estate or a construction contract to

improve real estate, but who, in the course of conducting such

business, transfers tangible personal property to users or

consumers in the finished form in which it was purchased, and

which does not become real estate, under any provision of a

construction contract or real estate sale or real estate sales

agreement entered into with some other person arising out of or

because of such nontaxable business, is a retailer to the

extent of the value of the tangible personal property so

transferred. If, in such transaction, a separate charge is made

for the tangible personal property so transferred, the value of

such property, for the purposes of this Act, is the amount so

separately charged, but not less than the cost of such property

to the transferor; if no separate charge is made, the value of

such property, for the purposes of this Act, is the cost to the

transferor of such tangible personal property.

"Retailer maintaining a place of business in this State",

or any like term, means and includes any of the following

retailers:

(1) A retailer having or maintaining within this State,

directly or by a subsidiary, an office, distribution house,

sales house, warehouse or other place of business, or any

agent or other representative operating within this State

under the authority of the retailer or its subsidiary,

irrespective of whether such place of business or agent or

other representative is located here permanently or

temporarily, or whether such retailer or subsidiary is

licensed to do business in this State. However, the

ownership of property that is located at the premises of a

printer with which the retailer has contracted for printing

and that consists of the final printed product, property

that becomes a part of the final printed product, or copy

from which the printed product is produced shall not result

in the retailer being deemed to have or maintain an office,

distribution house, sales house, warehouse, or other place

of business within this State.

(1.1) (Blank). A retailer having a contract with a

person located in this State under which the person, for a

commission or other consideration based upon the sale of

tangible personal property by the retailer, directly or

indirectly refers potential customers to the retailer by

providing to the potential customers a promotional code or

other mechanism that allows the retailer to track purchases

referred by such persons. Examples of mechanisms that allow

the retailer to track purchases referred by such persons

include but are not limited to the use of a link on the

person's Internet website, promotional codes distributed

through the person's hand-delivered or mailed material,

and promotional codes distributed by the person through

radio or other broadcast media. The provisions of this

paragraph (1.1) shall apply only if the cumulative gross

receipts from sales of tangible personal property by the

retailer to customers who are referred to the retailer by

all persons in this State under such contracts exceed

$10,000 during the preceding 4 quarterly periods ending on

the last day of March, June, September, and December. A

retailer meeting the requirements of this paragraph (1.1)

shall be presumed to be maintaining a place of business in

this State but may rebut this presumption by submitting

proof that the referrals or other activities pursued within

this State by such persons were not sufficient to meet the

nexus standards of the United States Constitution during

the preceding 4 quarterly periods.

(1.2) (Blank). Beginning July 1, 2011, a retailer

having a contract with a person located in this State under

which:

(A) the retailer sells the same or substantially

similar line of products as the person located in this

State and does so using an identical or substantially

similar name, trade name, or trademark as the person

located in this State; and

(B) the retailer provides a commission or other

consideration to the person located in this State based

upon the sale of tangible personal property by the

retailer.

The provisions of this paragraph (1.2) shall apply only if

the cumulative gross receipts from sales of tangible

personal property by the retailer to customers in this

State under all such contracts exceed $10,000 during the

preceding 4 quarterly periods ending on the last day of

March, June, September, and December.

(2) (Blank). A retailer soliciting orders for tangible

personal property by means of a telecommunication or

television shopping system (which utilizes toll free

numbers) which is intended by the retailer to be broadcast

by cable television or other means of broadcasting, to

consumers located in this State.

(3) (Blank). A retailer, pursuant to a contract with a

broadcaster or publisher located in this State, soliciting

orders for tangible personal property by means of

advertising which is disseminated primarily to consumers

located in this State and only secondarily to bordering

jurisdictions.

(4) (Blank). A retailer soliciting orders for tangible

personal property by mail if the solicitations are

substantial and recurring and if the retailer benefits from

any banking, financing, debt collection,

telecommunication, or marketing activities occurring in

this State or benefits from the location in this State of

authorized installation, servicing, or repair facilities.

(5) (Blank). A retailer that is owned or controlled by

the same interests that own or control any retailer

engaging in business in the same or similar line of

business in this State.

(6) (Blank). A retailer having a franchisee or licensee

operating under its trade name if the franchisee or

licensee is required to collect the tax under this Section.

(7) (Blank). A retailer, pursuant to a contract with a

cable television operator located in this State,

soliciting orders for tangible personal property by means

of advertising which is transmitted or distributed over a

cable television system in this State.

(8) (Blank). A retailer engaging in activities in

Illinois, which activities in the state in which the retail

business engaging in such activities is located would

constitute maintaining a place of business in that state.

(9) Beginning October 1, 2018 through June 30, 2020 , a

retailer making sales of tangible personal property to

purchasers in Illinois from outside of Illinois if:

(A) the cumulative gross receipts from sales of

tangible personal property to purchasers in Illinois

are $100,000 or more; or

(B) the retailer enters into 200 or more separate

transactions for the sale of tangible personal

property to purchasers in Illinois.

The retailer shall determine on a quarterly basis,

ending on the last day of March, June, September, and

December, whether he or she meets the criteria of either

subparagraph (A) or (B) of this paragraph (9) for the

preceding 12-month period. If the retailer meets the

criteria of either subparagraph (A) or (B) for a 12-month

period, he or she is considered a retailer maintaining a

place of business in this State and is required to collect

and remit the tax imposed under this Act and file returns

for one year. At the end of that one-year period, the

retailer shall determine whether the retailer met the

criteria of either subparagraph (A) or (B) during the

preceding 12-month period. If the retailer met the criteria

in either subparagraph (A) or (B) for the preceding

12-month period, he or she is considered a retailer

maintaining a place of business in this State and is

required to collect and remit the tax imposed under this

Act and file returns for the subsequent year. If at the end

of a one-year period a retailer that was required to

collect and remit the tax imposed under this Act determines

that he or she did not meet the criteria in either

subparagraph (A) or (B) during the preceding 12-month

period, the retailer shall subsequently determine on a

quarterly basis, ending on the last day of March, June,

September, and December, whether he or she meets the

criteria of either subparagraph (A) or (B) for the

preceding 12-month period.

"Bulk vending machine" means a vending machine, containing

unsorted confections, nuts, toys, or other items designed

primarily to be used or played with by children which, when a

coin or coins of a denomination not larger than $0.50 are

inserted, are dispensed in equal portions, at random and

without selection by the customer.

(Source: P.A. 99-78, eff. 7-20-15; 100-587, eff. 6-4-18.)



(35 ILCS 105/3-5)

Sec. 3-5. Exemptions. Use of the following tangible

personal property is exempt from the tax imposed by this Act:

(1) Personal property purchased from a corporation,

society, association, foundation, institution, or

organization, other than a limited liability company, that is

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

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

personal property was not purchased by the enterprise for the

purpose of resale by the enterprise.

(2) Personal property purchased by a not-for-profit

Illinois county fair association for use in conducting,

operating, or promoting the county fair.

(3) Personal property purchased by a not-for-profit arts or

cultural organization that establishes, by proof required by

the Department by rule, that it has received an exemption under

Section 501(c)(3) of the Internal Revenue Code and that is

organized and operated primarily for the presentation or

support of arts or cultural programming, activities, or

services. These organizations include, but are not limited to,

music and dramatic arts organizations such as symphony

orchestras and theatrical groups, arts and cultural service

organizations, local arts councils, visual arts organizations,

and media arts organizations. On and after July 1, 2001 (the

effective date of Public Act 92-35), however, an entity

otherwise eligible for this exemption shall not make tax-free

purchases unless it has an active identification number issued

by the Department.

(4) Personal property purchased by a governmental body, by

a corporation, society, association, foundation, or

institution organized and operated exclusively for charitable,

religious, or educational purposes, or by a not-for-profit

corporation, society, association, foundation, institution, or

organization that has no compensated officers or employees and

that is organized and operated primarily for the recreation of

persons 55 years of age or older. A limited liability company

may qualify for the exemption under this paragraph only if the

limited liability company is organized and operated

exclusively for educational purposes. On and after July 1,

1987, however, no entity otherwise eligible for this exemption

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

identification number issued by the Department.

(5) Until July 1, 2003, a passenger car that is a

replacement vehicle to the extent that the purchase price of

the car is subject to the Replacement Vehicle Tax.

(6) Until July 1, 2003 and beginning again on September 1,

2004 through August 30, 2014, graphic arts machinery and

equipment, including repair and replacement parts, both new and

used, and including that manufactured on special order,

certified by the purchaser to be used primarily for graphic

arts production, and including machinery and equipment

purchased for lease. Equipment includes chemicals or chemicals

acting as catalysts but only if the chemicals or chemicals

acting as catalysts effect a direct and immediate change upon a

graphic arts product. Beginning on July 1, 2017, graphic arts

machinery and equipment is included in the manufacturing and

assembling machinery and equipment exemption under paragraph

(18).

(7) Farm chemicals.

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

coinage issued by the State of Illinois, the government of the

United States of America, or the government of any foreign

country, and bullion.

(9) Personal property purchased from a teacher-sponsored

student organization affiliated with an elementary or

secondary school located in Illinois.

(10) A motor vehicle that is used for automobile renting,

as defined in the Automobile Renting Occupation and Use Tax

Act.

(11) Farm machinery and equipment, both new and used,

including that manufactured on special order, certified by the

purchaser to be used primarily for production agriculture or

State or federal agricultural programs, including individual

replacement parts for the machinery and equipment, including

machinery and equipment purchased for lease, and including

implements of husbandry defined in Section 1-130 of the

Illinois Vehicle Code, farm machinery and agricultural

chemical and fertilizer spreaders, and nurse wagons required to

be registered under Section 3-809 of the Illinois Vehicle Code,

but excluding other motor vehicles required to be registered

under the Illinois Vehicle Code. Horticultural polyhouses or

hoop houses used for propagating, growing, or overwintering

plants shall be considered farm machinery and equipment under

this item (11). Agricultural chemical tender tanks and dry

boxes shall include units sold separately from a motor vehicle

required to be licensed and units sold mounted on a motor

vehicle required to be licensed if the selling price of the

tender is separately stated.

Farm machinery and equipment shall include precision

farming equipment that is installed or purchased to be

installed on farm machinery and equipment including, but not

limited to, tractors, harvesters, sprayers, planters, seeders,

or spreaders. Precision farming equipment includes, but is not

limited to, soil testing sensors, computers, monitors,

software, global positioning and mapping systems, and other

such equipment.

Farm machinery and equipment also includes computers,

sensors, software, and related equipment used primarily in the

computer-assisted operation of production agriculture

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

to, the collection, monitoring, and correlation of animal and

crop data for the purpose of formulating animal diets and

agricultural chemicals. This item (11) is exempt from the

provisions of Section 3-90.

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

to or used by an air common carrier, certified by the carrier

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

of its business as an air common carrier, for a flight destined

for or returning from a location or locations outside the

United States without regard to previous or subsequent domestic

stopovers.

Beginning July 1, 2013, fuel and petroleum products sold to

or used by an air carrier, certified by the carrier to be used

for consumption, shipment, or storage in the conduct of its

business as an air common carrier, for a flight that (i) is

engaged in foreign trade or is engaged in trade between the

United States and any of its possessions and (ii) transports at

least one individual or package for hire from the city of

origination to the city of final destination on the same

aircraft, without regard to a change in the flight number of

that aircraft.

(13) Proceeds of mandatory service charges separately

stated on customers' bills for the purchase and consumption of

food and beverages purchased at retail from a retailer, to the

extent that the proceeds of the service charge are in fact

turned over as tips or as a substitute for tips to the

employees who participate directly in preparing, serving,

hosting or cleaning up the food or beverage function with

respect to which the service charge is imposed.

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

and production equipment, including (i) rigs and parts of rigs,

rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and

tubular goods, including casing and drill strings, (iii) pumps

and pump-jack units, (iv) storage tanks and flow lines, (v) any

individual replacement part for oil field exploration,

drilling, and production equipment, and (vi) machinery and

equipment purchased for lease; but excluding motor vehicles

required to be registered under the Illinois Vehicle Code.

(15) Photoprocessing machinery and equipment, including

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

manufactured on special order, certified by the purchaser to be

used primarily for photoprocessing, and including

photoprocessing machinery and equipment purchased for lease.

(16) Until July 1, 2023, coal and aggregate exploration,

mining, off-highway hauling, processing, maintenance, and

reclamation equipment, including replacement parts and

equipment, and including equipment purchased for lease, but

excluding motor vehicles required to be registered under the

Illinois Vehicle Code. The changes made to this Section by

Public Act 97-767 apply on and after July 1, 2003, but no claim

for credit or refund is allowed on or after August 16, 2013

(the effective date of Public Act 98-456) for such taxes paid

during the period beginning July 1, 2003 and ending on August

16, 2013 (the effective date of Public Act 98-456).

(17) Until July 1, 2003, distillation machinery and

equipment, sold as a unit or kit, assembled or installed by the

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

production of ethyl alcohol that will be used for consumption

as motor fuel or as a component of motor fuel for the personal

use of the user, and not subject to sale or resale.

(18) Manufacturing and assembling machinery and equipment

used primarily in the process of manufacturing or assembling

tangible personal property for wholesale or retail sale or

lease, whether that sale or lease is made directly by the

manufacturer or by some other person, whether the materials

used in the process are owned by the manufacturer or some other

person, or whether that sale or lease is made apart from or as

an incident to the seller's engaging in the service occupation

of producing machines, tools, dies, jigs, patterns, gauges, or

other similar items of no commercial value on special order for

a particular purchaser. The exemption provided by this

paragraph (18) does not include machinery and equipment used in

(i) the generation of electricity for wholesale or retail sale;

(ii) the generation or treatment of natural or artificial gas

for wholesale or retail sale that is delivered to customers

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

water for wholesale or retail sale that is delivered to

customers through pipes, pipelines, or mains. The provisions of

Public Act 98-583 are declaratory of existing law as to the

meaning and scope of this exemption. Beginning on July 1, 2017,

the exemption provided by this paragraph (18) includes, but is

not limited to, graphic arts machinery and equipment, as

defined in paragraph (6) of this Section.

(19) Personal property delivered to a purchaser or

purchaser's donee inside Illinois when