Illinois Extends Graphic Arts Exemption and Manufacturer’s Purchase Credit

The Illinois retailer’s occupation (sales) tax, service occupation tax, use tax, and service use tax exemption for graphic arts machinery and equipment, including repair and replacement parts, used primarily in the production of graphic arts has been extended from its automatic sunset date of July 30, 2009 to August 30, 2014. The corresponding Manufacturer’s Purchase Credit (MPC) earned on purchases of graphic arts and manufacturing machinery and equipment has also been extended to August 30, 2014.

The definition of “graphic arts production” has been revised to mean the production of tangible personal property for wholesale, retail sale, or lease by means of printing through the processes described in enumerated Groups and Subsectors of the North American Industry Classification System. Further, language has been added to specifically include persons engaged primarily in the business of printing or publishing newspapers or magazines that qualify as newsprint and ink by using the processes described in the Groups 511110-511199 of Subsector 511. For our previous news item on this topic, click here. (P.A. 96-116 (S.B. 1691), Laws 2009, effective July 31, 2009)

Posted on August 4, 2009