The answer depends on the circumstances under which the labor is performed.
- Tangible personal property is not transferred — Labor is not taxable.
- Custom-made items sold at retail — Labor is taxable. See Illinois Administrative Code, Section 130.410.
- Installation charges — Labor charges that are contracted for separately from the selling price of the tangible personal property are not taxable. Labor charges that are not contracted for separately are a part of the selling price and are taxable. See Illinois Administrative Code, Section 130.450.
