Electricity Distribution & Invested Capital Taxes

Statutory References

Electricity Invested Capital Tax 35 ILCS 620/2a.1
Gas Invested Capital Tax 35 ILCS 615/2a.1
Water Company Invested Capital Tax 35 ILCS 625/3

Definitions

Electricity Distribution Tax is imposed on persons who:

distribute, supply, furnish, or sell electricity for use or consumption (not for resale); and
are not electric cooperatives, school districts, or units of local government and are not subject to the Electricity Excise Tax.

Invested Capital Taxes are imposed on:

persons engaged in the business of distributing, supplying, furnishing or selling electricity who are electric cooperatives and who are subject to the Public Utilities Revenue Tax;
persons engaged in the business of distributing, supplying, furnishing, or selling natural gas who are subject to the Gas Tax; and
water companies subject to taxes imposed by the Illinois Income Tax Act.

Note: Municipalities are excluded from the Invested Capital Taxes.

Tax Rates

Electricity Distribution Tax - The tax rate is based on the kilowatt-hours (kwhs) distributed at the following monthly rates:

$0.00031 for the first 500 million kwhs
$0.0005 for the next 1 billion kwhs
$0.0007 for the next 2.5 billion kwhs
$0.0014 for the next 4 billion kwhs
$0.0018 for the next 7 billion kwhs
$0.00142 for the next 3 billion kwhs
$0.00131 for all kwhs distributed in excess of 18 billion kwhs

Invested Capital Tax - The tax rate is 0.8 percent of invested capital.

Allowable Deductions

Electricity Distribution Tax - None
Invested Capital Tax - Investments in, and advances to, all corporations.

Form/Filing & Payment Requirements

Return Form ICT-4, Electricity Distribution and Invested Capital Tax Return, is due March 15 following the end of the reporting year.

Estimated Payments Payments are due on March 15, June 15, September 15, and December 15. Taxpayers who mail their estimated payments to the department must complete Form ICT-1, Electricity Distribution and Invested Capital Tax Estimated Payment. Do not send Form ICT-1 if you remit your payment by EFT.

A taxpayer that had annual liability of $200,000 or more in the preceding calendar year must remit any tax payment by Electronic Funds Transfer.