Statutory Reference
Electronic Services
Definition
The tax is imposed on the privilege of using electricity purchased for use or consumption and not for resale. The tax is also imposed on the privilege of using electricity purchased from a municipal system or electric cooperative on all electricity distributed, supplied, furnished, sold, transmitted, or delivered for use and consumption (not for resale). In addition, non-residential consumers of electricity who elect to register with the department as self-assessing purchasers pay the tax directly to the department.
Allowable Deductions
The following sales of electricity are exempt from tax:
- Sales for resale
- Sales in interstate commerce
- Sales to businesses certified by the Illinois Department of Commerce and Economic Opportunity and located in an enterprise zone
- Sales to the federal government
- Sales to municipal corporations owning and operating a local transportation system for public service in Illinois
- Utilities are also allowed a tax credit when they are required to purchase electricity produced from methane gas that is generated from landfills.
Tax Rate
Each month, municipal systems and electric cooperatives collect tax from each purchaser an amount equal to the lesser of 5 percent of gross receipts or $.0032 per kilowatt-hour (kwh) per customer. Delivering suppliers collect the following tax amounts from each purchaser monthly:
- $.0033 per kilowatt-hours (kwhs) for the first 2,000 kwhs
- $.00319 per kwh for the next 48,000 kwhs
- $.00303 per kwh for the next 50,000 kwhs
- $.00297 per kwh for the next 400,000 kwhs
- $.00286 per kwh for the next 500,000 kwhs
- $.00270 per kwh for the next 2 million kwhs
- $.00254 per kwh for the next 2 million kwhs
- $.00233 per kwh for the next 5 million kwhs
- $.00207 per kwh for the next 10 million kwhs
- $.00202 per kwh for all kwhs in excess of 20 million kwhs
Self-assessing purchasers pay 5.1 percent of the purchase price for all electricity distributed, supplied, furnished, sold, transmitted, or delivered to them in a month.
Local taxes
Municipalities may impose a tax on the business of distributing, supplying, furnishing, selling, transmitting, or delivering electricity for use or consumption (and not for resale) within the corporate limits of the municipality. The Department of Revenue does not collect these locally imposed taxes.
License Requirements
REG-1, Business Registration Application, is the form a qualified business must use to apply for a license. Self-assessing purchasers must elect to be a self-assessing purchaser every two years and must pay a $200 license fee for the two-year period. You may also register using our on-line
Business Registration program.
Form/Filing & Payment Requirements
Return
- Form RPU-13, Electricity Excise Tax Return, is filed monthly, quarterly, or annually, based on the taxpayer’s average monthly liability. The department determines how often a return must be filed.
- A monthly return is due on or before the 15th day of the month following the month for which the return is filed.
- A quarterly return is due on or before the last day of the month following the quarter for which the return is filed.
- An annual return is due on or before January 31 of the year following the year for which the return is filed.
Returns may be filed electronically. For more information see
WebFile & Pay Electricity Excise Tax.
Quarter-monthly payments
Companies other than municipalities that have an average monthly liability of $10,000 or more must make quarter-monthly payments. Payments are due on the 7th, 15th, 22nd, and the last day of the month. Payments can be made using the department's Electricity Excise Tax WebFile program. Taxpayers who mail their quarter-monthly payments to the department must complete Form RPU-50, Public Utilities Quarter-Monthly Payment - Electricity Excise Tax. Do not send Form RPU-50 if you remit your payment electronically.
Note: Electronic funds transfer participants should not send Form RPU-50 to the department.
A taxpayer that had an annual liability of $200,000 or more in the preceding calendar year must remit any tax payment electronically by
Electronic Funds Transfer (EFT). For more information please see
WebFile & Pay Electricity Excise Tax.
