August 2, 2004
FOR IMMEDIATE RELEASE
Illinois Tax Budget Bill Reinstates Corporate Credits and Exemptions.
Both houses of the Illinois General Assembly passed Senate Bills 841, 842, and 1733 on
May 31, 2003, and Governor Rod Blagojevich is expected to sign the bills as early as this
week. In an attempt to raise revenues to fill the deficit gap, these bills eliminate the
Manufacturers' Purchase Credit, the Graphic Arts Machinery and Equipment Exemption, the
Out-of-State Natural Gas Use Tax Exemption, the Oil Field and Coal Exploration Equipment
Exemption, and the Rolling Stock Exemption for motor vehicles.
One of the most significant changes is to eliminate the Manufacturers' Purchase Credit for
purchases after June 30, 2003. A qualified purchaser desiring to use the Manufacturers'
Purchase Credit must certify to their sellers prior to October 1, 2003 that the purchaser
is satisfying their tax liability through utilization of the credit. A Manufacturers'
Purchase Credit reported on any original or amended return after October 20, 2003 shall
be disallowed. It is critical that purchasers certify and report all qualifying purchases
in a timely manner in order to maximize the amount of Manufacturers' Purchase Credit
prior to its elimination.
Other sales and use tax exemptions to be eliminated within the next 30 days include:
- The Graphic Arts Machinery and Equipment Exemption will be eliminated for qualified
purchases after July 1, 2003.
- The Out-of-State Natural Gas Use Tax Exemption for direct purchases of gas from
out-of-state suppliers with respect to contracts executed prior to March 1, 1995
is eliminated for purchases after September 30, 2003.
- The Equipment Exemptions with respect to Oil Field and Coal Exploration will be
eliminated for purchases after July 1, 2003.
- In addition, effective July 1, 2003, motor vehicles do not qualify for the Rolling
Stock Exemption.
If you have any questions regarding this information, please call Mr. James Kranjc,
Senior Manager in Charge of the Chicago Office of Ryan & Company at 630.515.0477 x173822.
Mr. Kranjc can also be reached by
e-mail.
<< Back to Tax Developments