HB5577 Summary

• Creates tax exemption for medical appliances classified as Class III medical devices by the FDA used for cancer treatment pursuant to prescription, effective January 1, 2025.

• Defines "medical appliance" to include products previously taxed at 1% rate, specifically including devices used to treat amyotrophic lateral sclerosis (ALS).

• Exemption applies to medical appliances and accessories plus related components determined by the Department by rule.

• Amends Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act to implement the exemption.