Illinois Governor J.B. Pritzker recently signed new legislation that may benefit your manufacturing business.
Illinois Senate Bill 689 expands the exemption from sales and use tax for manufacturing and assembling machinery and equipment to include production related tangible personal property purchased on or after July 1, 2019.
“Production related tangible personal property” is defined as all tangible personal property that is used or consumed by the purchaser in a manufacturing facility in which a manufacturing process takes place and includes, without limitation, tangible personal property that is purchased for incorporation into real estate within a manufacturing facility; supplies and consumables used in a manufacturing facility including fuels, coolants, solvents, oils, lubricants, and adhesives, hand tools, protective apparel, and fire and safety equipment used or consumed within a manufacturing facility; and tangible personal property that is used or consumed in activities such as research and development, preproduction material handling, receiving, quality control, inventory control, storage, staging, and packaging for shipping and transportation purposes
We hope that this information helps you to understand the impact to your business. However, if you have any questions, please do not hesitate to contact us.