§ 2-29 — Quantum computing campus building materials exemption

Illinois § 2-29

• Jurisdiction: Illinois
• Topic: GOVERNMENT
• Ch. 35: REVENUE
• Act 35 ILCS 120/: Retailers' Occupation Tax Act.

Text

(a) Each retailer who makes a qualified sale of building materials to be incorporated into real estate at a quantum computing campus certified by the Department of Commerce and Economic Opportunity under Section 605-1115 of the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois may deduct receipts from those sales when calculating the tax imposed by this Act. Quantum Computing Campus Building Materials Exemption Certificates shall be issued for an initial period not to exceed 20 years and can be renewed once for a period not to exceed 20 years. (b) No retailer who is eligible for the deduction or credit for a given sale under Section 5k of this Act related to enterprise zones, Section 5l of this Act related to High Impact Businesses, Section 5m of this Act related to REV Illinois projects, or Section 5n of this Act related to MICRO facilities shall be eligible for the deduction or credit authorized under this Section for that same sale. (c) A construction contractor or other entity shall not make tax-free purchases unless it has an active Exemption Certificate issued by the Department at the time of the purchase. (d) A taxpayer that is certified by the Department of Commerce and Economic Opportunity under Section 605-1115 of the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois shall submit a request to the Department for an initial or renewal Quantum Computing Campus Materials Exemption Certificate. Upon request from the certified taxpayer, the Department shall issue a Quantum Computing Campus Building Materials Exemption Certificate for each construction contractor or other entity identified by the certified taxpayer. The Department shall make the Quantum Computing Campus Building Materials Exemption Certificates available to each construction contractor or other entity identified by the certified taxpayer and to the certified taxpayer. The request for Quantum Computing Campus Building Materials Exemption Certificates under this Section must include the following information: (1) the name and address of the construction contractor or other entity; (2) the name and location or address of the building project site; (3) the estimated amount of the exemption for each construction contractor or other entity for which a request for a Quantum Computing Campus Building Materials Exemption Certificate is made, based on a stated estimated average tax rate and the percentage of the contract that consists of materials; (4) the period of time over which supplies for the project are expected to be purchased; and (5) other reasonable information as the Department may require, including, but not limited to, FEIN numbers, to determine if the contractor or other entity, or any partner, or a corporate officer, and in the case of a limited liability company, any manager or member, of the construction contractor or other entity, is or has been the owner, a partner, a corporate officer, and, in the case of a limited liability company, a manager or member, of a person that is in default for moneys due to the Department under this Act or any other tax or fee Act administered by the Department. The Department, in its discretion, may require that the request for Quantum Computing Campus Building Materials Exemption Certificates be submitted electronically. The Department may, in its discretion, issue the Exemption Certificates electronically. (e) To document the exemption allowed under this Section, the retailer must obtain from the purchaser the certification required under this Section, which must contain the Quantum Computing Campus Building Materials Exemption Certificate number issued to the purchaser by the Department. In addition, the retailer must obtain certification from the purchaser that contains: (1) a statement that the building materials are being purchased for incorporation into real estate located in a quantum computing campus; (2) the location or address of the real estate into which the building materials will be incorporated; (3) the name of the quantum computing campus in which that real estate is located; (4) a description of the building materials being purchased; (5) the purchaser's Quantum Computing Campus Building Materials Exemption Certificate number issued by the Department; and (6) the purchaser's signature and date of purchase. (f) The Department shall issue the Quantum Computing Campus Building Materials Exemption Certificates within 3 business days after receipt of the request from the certified taxpayer. This requirement does not apply in circumstances where the Department, for reasonable cause, is unable to issue the Exemption Certificate within 3 business days. The Department may refuse to issue a Quantum Computing Campus Building Materials Exemption Certificate if the owner, any partner, or a corporate officer, and in the case of a limited liability company, any manager or member, of the construction contractor or other entity is or has been the owner, a partner, a corporate officer, and, in the case of a limited liability company, a manager or member, of a person that is in default for moneys due to the Department under this Act or any other tax or fee Act administered by the Department. (g) The Quantum Computing Campus Building Materials Exemption Certificate shall contain: (1) a unique identifying number that shall be designed in such a way that the Department can identify from the unique number on the Exemption Certificate issued to a given construction contractor or other entity, the name of the quantum computing campus and the construction contractor or other entity to whom the Exemption Certificate is issued; (2) the name of the construction contractor or entity to whom the Exemption Certificate is issued; (3) issuance, effective, and expiration dates; and (4) language stating that if the construction contractor or other entity who is issued the Exemption Certificate makes a tax-exempt purchase, as described in this Section, that is not eligible for exemption under this Section or allows another person to make a tax-exempt purchase, as described in this Section, that is not eligible for exemption under this Section, then, in addition to any tax or other penalty imposed, the construction contractor or other entity is subject to a penalty equal to the tax that would have been paid by the retailer under this Act as well as any applicable local retailers' occupation tax on the purchase that is not eligible for the exemption. (h) After the Department issues Exemption Certificates for a given quantum computing campus, the certified taxpayer may notify the Department of additional construction contractors or other entities that are eligible for a Quantum Computing Campus Building Materials Exemption Certificate. Upon receiving such a notification and subject to the other provisions of this Section, the Department shall issue a Quantum Computing Campus Building Materials Exemption Certificate to each additional construction contractor or other entity so identified. (i) A certified taxpayer may ask the Department to rescind a Quantum Computing Campus Building Materials Exemption Certificate previously issued by the Department to a construction contractor or other entity working at that certified quantum computing campus if that Quantum Computing Campus Building Materials Exemption Certificate has not yet expired. Upon receiving such a request and subject to the other provisions of this Section, the Department shall issue the rescission of the Quantum Computing Campus Building Materials Exemption Certificate to the construction contractor or other entity identified by the certified taxpayer and provide a copy of the rescission to the construction contractor or other entity and to the certified taxpayer. (j) If the Department of Revenue determines that a construction contractor or other entity that was issued an Exemption Certificate under this Section made a tax-exempt purchase, as described in this Section, that was not eligible for exemption under this Section or allowed another person to make a tax-exempt purchase, as described in this Section, that was not eligible for exemption under this Section, then, in addition to any tax or other penalty imposed, the construction contractor or other entity is subject to a penalty equal to the tax that would have been paid by the retailer under this Act as well as any applicable local retailers' occupation tax on the purchase that was not eligible for the exemption. (k) Each contractor or other entity that has been issued a Quantum Computing Campus Building Materials Exemption Certificate under this Section shall annually report to the Department the total value of the quantum computing campus building materials exemption from State taxes. Reports shall contain information reasonably required by the Department to enable it to verify and calculate the total tax benefits for taxes imposed by the State and shall be broken down by quantum computing campus site. Reports are due no later than May 31 of each year and shall cover the previous calendar year. Failure to report data may result in revocation of the Quantum Computing Campus Building Materials Exemption Certificate issued to the contractor or other entity. The Department is authorized to adopt rules governing revocation determinations, including the length of revocation. Factors to be considered in revocations shall include, but are not limited to, prior compliance with the reporting requirements, cooperation in discontinuing and correcting violations, and whether the certificate was used unlawfully during the preceding year. The Department, in its discretion, may require that the reports filed under this Section be submitted electronically. (l) As used in this Section: "Certified taxpayer" means a person certified by the Department of Commerce and Economic Opportunity under Section 605-1115 of the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. "Qualified sale" means a sale of building materials that will be incorporated into real estate as part of a building project for which a Quantum Computing Campus Building Materials Exemption Certificate has been issued to the purchaser by the Department. (m) The Department shall have the authority to adopt rules as are reasonable and necessary to implement the provisions of this Section. (n) This Section is exempt from the provisions of Section 2-70. (o) This exemption also applies to the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act and is incorporated by reference in Section 12 of each of those respective Acts.

Legislative History

(Source: P.A. 103-595, eff. 6-26-24.)