An IAAP legislative initiative to extend the sales tax exemption on mining equipment, HB 4415 overwhelmingly passed the House and Senate and will now be sent to Governor Rauner to be signed into law. The exemption is currently scheduled to sunset in August of this year. The legislation will extend the exemption for five years.
Senator Don Harmon and Representative Jerry Costello were the lead sponsors of the bill. The legislation is a joint initiative with the Illinois Coal Association. While the IAAP has successfully assured through recent rules adopted by the Illinois Department of Revenue that most mining equipment is also exempt under the Manufacturing Machinery and Equipment Tax Exemption (MM&E), the mining equipment exemption is broader than the MM&E and serves as an insurance policy should the MM&E be eliminated. The IAAP has met with officials from the Rauner administration and we expect the bill to be signed into law in the next few weeks.