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IL Graphic Arts Machinery and Equipment Exemption/MPC to Expire August 30, 2014 PDF Print E-mail

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 NOT been extended from its automatic sunset date of August 30, 2014. The corresponding Manufacturer’s Purchase Credit (MPC) earned on purchases of graphic arts and manufacturing machinery and equipment will also expire August 30, 2014.

To take advantage of these tax incentives before they fall off the books, the Great Lakes Graphics Association and Illinois Press Association recommend making any related purchases BEFORE August 30, 2014.  If you or your company plans to make purchases before this date, while asserting this exemption, an ST-587 form may be downloaded by clicking here.  IT IS VERY IMPORTANT THAT YOUR COMPANY RETAINS RECORDS FOR ANY QUALIFYING PURCHASES MADE AFTER AUGUST 30, 2014.  The IPA and GLGA plan to back legislation that will renew both the Graphic Arts Exemption and Manufacturer’s Purchase Credit retroactively.

The definition of “graphic arts production” means 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, the law specifically includes 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.

This legislative session there were several bills introduced to extend the graphics arts machinery and equipment tax incentive, as well as the accompanying manufacturers purchase credit. The following measures would have extended the incentive past its current statutory expiration of August 30, 2014:

  • HB 4780, Sponsored by Rep. Pat Verschoore (D-Moline)
  • HB 5948, Sponsored by Rep. Mike Zalewksi (D-Chicago)
  • SB 3278, Sponsored by Sen. Pam Althoff (R-Crystal Lake)
  • House Amendment #1, to SB 346, Sponsored by Speaker Michael Madigan (D-Chicago)

House Bills 4780 and 5948 were never called for a vote, the same goes SB 3278.  Nevertheless, we thank the sponsors for their efforts in seeing that this important business tax credit continues to remain on the books in Illinois.

What did get called for a vote was Senate Bill 346, sponsored by Speaker Madigan.  This piece of legislation contained an extension of the graphic arts machinery and equipment exemption until February 28, 2015 and passed the House on May 30 by a vote of 107-4.  However, the bill had to go back to the Senate for a concurrence vote because it was a senate bill that the House amended; both chambers must concur in changes before legislation can go to the Governor.  The Senate unfortunately left town without taking up the measure.  The Illinois Press Association, Great Lakes Graphics Association, Illinois Manufacturers Association and Illinois Chamber of Commerce all supported the bill’s passage. 

Nevertheless, the IPA, in conjunction with GLGA, looks forward to renewing these important business tax incentives in the coming months.

“Step 3” in Rauner Plan Would Eliminate Newsprint and Ink Tax Exemption
 
Late last week, Illinois gubernatorial candidate Bruce Rauner unveiled “Step 3” of his “path to prosperity” for Illinois that largely focuses on reforming “corporate welfare.” While he didn’t just single out the print or newspaper industries, he did call for closing many “corporate loopholes,” which apparently includes the state sales tax exemption on newsprint and ink.  The IPA is in the process or reviewing his plan and his campaign’s estimate about the cost of this tax incentive.  In the coming weeks we will likely be meeting with Rauner and his campaign to discuss this matter, among others.  There is no bill or legislation to take specific action on, we just wanted to let you know that this idea is again back in the news.
 
Rauner’s press release, also known as, “Step 3” can be found here.
 
For further comments or questions about any of these topics, please contact:
Josh Sharp
Director of Government Relations
Illinois Press Association
217.241.1300 (Springfield)
312.644.7120 (Chicago)
217.971.7932 (Mobile)
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

 
It's Golf Time! PDF Print E-mail

 Calling All Golfers!  Come join your colleagues for a day of fun, food, prizes and camaraderie at our annual state golf outings. They are the summer's biggest networking events. Click on these links for more information and to download the registration brochures.

 

Wisconsin State Golf Outing - August 13, 2014, Lake Ripley Golf Club, Cambridge, WI

 

Thank you to everyone who golfed at the Indiana Golf Outing on June 25 and at the Chicagoland Printers Scholarship Golf Outing on July 16. We hope to see you at the 2015 outings!

 
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