IL HB3573

Extends the Manufacturing Machinery and Equipment Exemption under the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act to include "production related tangible personal property" purchased on or after July 1, 2019.

Defines "production related tangible personal property" to include supplies and consumables used in manufacturing facilities such as fuels, coolants, solvents, oils, lubricants, adhesives, hand tools, protective apparel, and fire and safety equipment, as well as property used in research and development, material handling, quality control, inventory control, storage, and packaging.

Exempts from the definition items used for sales, purchasing, accounting, marketing, personnel recruitment, landscaping, and property required to be titled or registered with government agencies.

Changes the Department of Revenue's authority from "may" to "shall" adopt rules to implement and administer the exemption for production related tangible personal property.

Takes effect immediately upon becoming law.