IL HB4431

Beginning July 1, 2026, clarifies that the existing 1% reduced tax rate on motor vehicle modifications for persons with disabilities applies to equipment installed before, during, or after vehicle purchase.

The 1% rate applies only when disability-related modifications are separately itemized on the bill or invoice, whether purchased with the vehicle or separately.

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

The standard tax rate for tangible personal property is 6.25%, making this a significant reduction for qualifying disability-related vehicle modifications.

Effective immediately upon becoming law.