Bill
HB 4254
Illinois HB 4254 would exempt medical appliances from taxes (use, service, occupation, retailers’ tax) starting Jan 1, 2027, reducing costs for buyers and tax revenue.
Status: Filed with the Clerk (Rep. Jed Davis). Introduced March 10, 2025. Effective date (if enacted): January 1, 2027.
Note on source documents: The materials provided include language from two different measures both labeled “HB 4254.” One is an Illinois revenue bill (sponsored by Rep. Jed Davis) that would exempt medical appliances from certain Illinois taxes. The other is a Michigan Public Health Code amendment (titled “Queenie’s Law”) banning certain uses of dogs in public‑body experiments. This summary focuses on the Illinois bill concerning tax treatment of medical appliances; the Michigan bill is summarized briefly at the end for clarity.
Purpose and intent
- To exempt “medical appliances” from multiple Illinois taxes so that sales, uses, and occupation activities involving such appliances are not subject to those taxes beginning January 1, 2027. The intent is to reduce tax burdens on medical device/appliance purchases and related services.
Key provisions
- Amends multiple Illinois tax statutes, including:
- The Use Tax Act (35 ILCS 105; sections 3‑5 and 3‑10),
- The Service Use Tax Act,
- The Service Occupation Tax Act,
- The Retailers' Occupation Tax Act.
- Adds (or modifies) exemptions so that medical appliances are not taxable under those acts. (Exact statutory subsection amendments are indicated in the bill text; the bill references changes across the cited ILCS sections.)
- Effective date for the exemption: January 1, 2027.
Who/what is affected
- Buyers and lessees of medical appliances in Illinois (patients, hospitals, clinics, long‑term care facilities, and other healthcare providers) would no longer pay the listed Illinois taxes on qualifying medical appliances.
- Retailers, service providers, and lessors involved in sales, leases, or taxable services related to medical appliances would be relieved of tax collection/remittance obligations for those exempt transactions.
- State and local governments: potential reduction in tax revenues collected under the amended acts.
Procedural timeline and actions (selected)
- Filed: March 10, 2025 (introduced by Rep. Jed Davis).
- Read first time / referred to committee in March 2025.
- Committee activity: public hearing and committee substitute considered (April 29, 2025); left pending in committee.
- Later actions include reporting with recommendation for referral to Rules Committee (Oct 30, 2025) and subsequent procedural steps; filed with Clerk by Rep. Jed Davis on Dec 18, 2025.
Potential fiscal and policy impacts
- Fiscal: The bill would reduce tax receipts from the affected tax bases (use tax, occupation taxes, service taxes) to an extent dependent on the volume and dollar value of medical appliances purchased or leased in Illinois. The bill text does not include an official fiscal estimate in the provided materials.
- Policy: Lowers cost barrier for acquisition of medical appliances, which proponents may argue improves access to needed medical equipment; opponents may raise concerns about foregone revenue and whether the exemption is appropriately targeted.
Brief note on the Michigan material included in the documents
- A separate Michigan House bill also labeled HB 4254 (sponsored by Rep. Joseph A. Aragona) would add “Queenie’s Law” to the Michigan Public Health Code to prohibit public bodies from using dogs in experimental procedures that cause pain or distress; it includes civil fines ($1,000–$5,000 per dog per day) and rulemaking by the Department of Health and Human Services. That measure is unrelated to the Illinois tax exemption bill and appears to have been included in the provided documents in error.
If you want, I can:
- Produce a concise bill text comparison showing which exact statutory lines are changed,
- Draft potential fiscal scenarios estimating revenue impact based on assumed appliance market sizes,
- Or prepare a plain‑language explanation for affected businesses and healthcare providers on compliance changes if the exemption passes.
Compiled from official sources — confirm details with the bill’s official record.
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