IL HB3643

Creates a sales and use tax exemption for equipment and materials used in providing broadband services, effective for property placed in service on or after January 1, 2026

Covered equipment includes wires, fiber optic cables, antennas, poles, switches, routers, amplifiers, repeaters, receivers, transmitters, modems, power and backup power equipment, diagnostic equipment, and central office equipment like channel cards, frames, and cabinets

Exemption applies to machinery, software, and tangible personal property used in producing, broadcasting, distributing, transmitting, storing, switching, or routing broadband services, as well as monitoring, testing, and maintaining such infrastructure

Amends four Illinois tax acts: Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act

"Broadband" and "broadband service" are defined according to Section 10 of the Broadband Advisory Council Act