Illinois Enacts Exemption for Federal Government for Property Sold to Active-Duty Armed Forces Members

Illinois has enacted a new exemption for tangible personal property that is sold to active-duty members of the Armed Forces. The exemption will go into effect on January 1, 2024.  

The exemption applies to active-duty members of the United States Army, Navy, Marines, Air Force, and Coast Guard.  

To qualify for the exemption, the Armed Forces member must: 

• • • Present a valid military ID 

• • • Purchase the property using a form of payment where the federal government is the payor 

• • • Complete an exemption certificate at the point of sale 

The retailer must retain a copy of the exemption certificate for no less than 6 years.  

(35 ILCS 105/3-5, 35 ILCS 110/3-5, 35 ILCS 115/3-5, and 35 ILCS 120/2-5 as amended by P.A. 103-0384, effective January 1, 2024)