Section 510.110  Imposition of Tax

a)         Through December 31, 1997, there is imposed upon persons engaged in this State in the business of distributing, supplying, furnishing or selling electricity to persons, other than municipal corporations owning and operating a local transportation system for public service in this State, for use or consumption and not for resale, a tax at the rate of .32 cents per kilowatt-hour of all electricity which is so distributed, supplied, furnished, or sold or transmitted to or for each customer in the course of such business, or 5% of the gross receipts received from each customer from such business, whichever is the lower rate as applied to each customer for that customer's billing period, provided that any change in rate imposed by P.A. 84-1093 shall become effective only with bills having a meter reading date on or after January 1, 1986.  However, such taxes are not imposed with respect to any transaction in interstate commerce, or otherwise, to the extent to which such business may not, under the Constitution and statutes of the United States, be made the subject of taxation by this State. Nothing in P.A. 84-1093 shall impose a tax with respect to any transaction with respect to which no tax was imposed immediately preceding the effective date of P.A. 84-1093.  (Section 2 of the Act was repealed by P.A. 90-561, effective January 1, 1998)

b)         Imposition of Tax on Distribution of Electricity and Invested Capital beginning January 1, 1998

1)         Beginning January 1, 1998, in addition to the tax imposed by the Illinois Income Tax Act, there is hereby imposed upon every taxpayer (other than an electric cooperative, a school district or unit of local government as defined in Section 1 of Article VII of the Illinois Constitution of 1970), an additional tax as follows:

A)        for the first 500,000,000 kilowatt-hours distributed by the taxpayer in this State during the taxable period, 0.031 cents per kilowatt-hour;

B)        for the next 1,000,000,000 kilowatt-hours distributed by the taxpayer in this State during the taxable period, 0.050 cents per kilowatt-hour;

C)        for the next 2,500,000,000 kilowatt-hours distributed by the taxpayer in this State during the taxable period, 0.070 cents per kilowatt-hour;

D)        for the next 4,000,000,000 kilowatt-hours distributed by the taxpayer in this State during the taxable period, 0.140 cents per kilowatt-hour;

E)        for the next 7,000,000,000 kilowatt-hours distributed by the taxpayer in this State during the taxable period, 0.180 cents per kilowatt-hour;

F)         for the next 3,000,000,000 kilowatt-hours distributed by the taxpayer in this State during the taxable period, 0.142 cents per kilowatt-hour; and

G)        for all kilowatt-hours distributed by the taxpayer in this State during the taxable period in excess of 18,000,000,000 kilowatt-hours, 0.131 cents per kilowatt-hour.

2)         Beginning January 1, 1998, there is imposed on electric cooperatives that are required to file reports with the Rural Utilities Service, a tax equal to 0.8% of such cooperative’s invested capital for the taxable period.  The invested capital tax imposed by this subsection shall not be imposed on electric cooperatives not required to file reports with the Rural Utilities Service.

3)         If, for any taxable period, the total amount received by the Department from the tax imposed by subsection (b)(1) exceeds $145,279,553 plus, for taxable periods subsequent to 1998, an amount equal to the lesser of (i) 5% or (ii) the percentage increase in the Consumer Price Index during the immediately preceding taxable period, of the total amount received by the Department from the tax imposed by subsection (b)(1) for the immediately preceding taxable period, determined after allowance of the credit provided for in this subsection, the Department shall issue credit memoranda in the aggregate amount of the excess to each of the taxpayers who paid any amount of tax under subsection (b)(1) for that taxable period in the proportion which the amount paid by the taxpayer bears to the total amount paid by all such taxpayers.  This calculation shall be made as of December 1 of the year following the immediately preceding taxable period and shall consist of only those returns with payment then on file with the Department.  All future amendments to returns and monies covering this period received after December 1 of the year following the taxable period will not be included in the calculation of the affected taxable period or any other taxable period.  The provisions of this subsection are not subject to the Uniform Penalty and Interest Act.  Any credit memorandum issued to a taxpayer under this subsection may be used as a credit by the taxpayer against its liability in future taxable periods for tax under subsection (b)(1).  Any amount credited to a taxpayer shall not be refunded to the taxpayer unless the taxpayer demonstrates to the reasonable satisfaction of the Department that it will not incur future liability for tax under subsection (b)(1).  [35 ILCS 620/2a.1]

c)         The tax imposed by the Act shall be in addition to all other occupation or privilege taxes imposed by the State of Illinois or by any municipal corporation or political subdivision thereof.  [35 ILCS 620/14]

(Source:  Amended at 47 Ill. Reg. 18748, effective November 28, 2023)