Illinois Software and Product Support Agreement is a legally binding contract that outlines the terms and conditions between a software or product provider and a customer regarding the support services provided. This agreement ensures that the software or product is maintained, updated, and supported in a manner that meets the customer's expectations. Under the Illinois Software and Product Support Agreement, there are different types that can be tailored to specific needs. Here are the key types of agreements commonly used: 1. Basic Support Agreement: This agreement provides essential support services such as bug fixes, patches, and updates to ensure the software or product's optimal performance. It typically includes email or phone assistance during business hours and access to online documentation. 2. Standard Support Agreement: This type of agreement expands on the basic support by offering priority response times and extended support hours. It may also include additional services like remote troubleshooting, error analysis, and online forums for community support. 3. Premium Support Agreement: Designed for businesses requiring a high level of support, a premium support agreement offers faster response times, 24/7 support availability, and dedicated technical account managers. It may include customized solutions, onsite support, and enhanced escalation procedures for critical issues. 4. Maintenance Agreement: A maintenance agreement focuses specifically on keeping the software or product up-to-date, secure, and compatible with evolving technologies. It involves regular updates, upgrades, and enhancements to ensure long-term operability. 5. Service Level Agreement (SLA): Often used in conjunction with software and product support agreements, an SLA specifies measurable service levels and performance metrics. It outlines the response time guarantees, availability percentages, and penalties if service levels are not met. In Illinois, these agreements are governed by state laws and regulations to protect the interests of both the customer and the software/provider. It is crucial for both parties to carefully review and negotiate the terms of the agreement to ensure clarity, fairness, and mutual understanding. Seek legal advice before signing any software and product support agreement to ensure compliance with Illinois laws and regulations.
Illinois Software and Product Support Agreement
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FAQ
Illinois does not impose tax on SaaS delivered via a cloud-based system, provided the transaction does not include a transfer of tangible personal property.
Sales of canned computer software are taxable as retail sales in Illinois. Sales of custom software, which is prepared to the special order of the customer, are not taxable.
Information for exclusively charitable, religious, or educational organizations; governmental bodies; and certain other tax-exempt organizations (PIO-37) Qualified organizations, as determined by the Illinois Department of Revenue (IDOR), are exempt from paying sales taxes in Illinois.
In the state of Illinois, any modified software which is held for general or repeated sale or lease is considered to be taxable. Sales of digital products are exempt from the sales tax in Illinois.
Sales of canned computer software are taxable as retail sales in Illinois. Sales of custom software, which is prepared to the special order of the customer, are not taxable.
Yes. Retail sales tax applies to a service contract or warranty sold to a consumer (WAC 458-20-257).
Sales of parts purchased for use in performing service under optional maintenance contracts are subject to sales tax in Illinois.
Charges for maintenance agreements or warranty contracts are taxable if they are included in the selling price. Charges for maintenance agreements or warranty contracts are not taxable if they are sold separately.
Although Illinois has an SOT in name, it doesn't actually tax services. Instead, it taxes tangible personal property transferred as the result of a sale of service. In fact, the only services Illinois currently taxes (through other tax acts) are telecommunications, hotels and car rentals, among others.