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Proposed Rules
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Income Tax / Implementing Sections 709.5 and 1501 of the Illinois Income Tax Act
This rulemaking amends Part 100 Income Tax, Subpart EE Definitions, Section 100.9730 Investment Partnerships, implementing the changes in Public Act 103-0009 to the definition of “investment partnership” in the Illinois Income Tax Act Section 1501(a)(11.5). Additional updates and corrections to this section are included in the rulemaking. This rulemaking adds a new section (Section 100.7034) to Part 100 Income Tax, Subpart S Requirement and Amount of Withholding, implementing the changes in Public Act 103-0009 which amends the Illinois Income Tax Act to add Section 709.5(d) requiring investment partnerships to withhold an amount from each nonresident partner for taxable years ending on and after December 31, 2023.
- 1st Notice Begins: 12/15/2023
- 1st Notice Ends: 01/29/2024
- 2nd Notice Submitted: 04/22/2024
- Formal JCAR Meeting: : 05/14/2024
- Final Rule:
Use Tax/Implementing the Use Tax Act [35 ILCS 105] and authorized by Sections 2505-90 and 2505-795 of the Civil Administrative Code of Illinois. (Department of Revenue Law) [20 ILCS 2505]
This rulemaking amends several sections of Part 150, Use Tax, to reflect new statutory developments, decisional law, and Department policies. This rulemaking also deletes outdated provisions in Part 150 and provides various technical changes.
- 1st Notice Begins: 12/26/2023
- 1st Notice Ends: 02/09/2024
- 2nd Notice Submitted: 01/30/2024
- Formal JCAR Meeting: 03/12/2024
- Final Rule: 04/24/2024
Service Use Tax/Implementing the Service Use Tax Act [35 ILCS 110] and authorized by Section 2505-100 of the Civil Administrative Code of Illinois. (Department of Revenue Law) [20 ILCS 2505/2505-100]
This rulemaking amends Part 160, Service Use Tax, to reflect new statutory developments, decisional law, and Department policies. This rulemaking also deletes outdated provisions in Part 160 and provides various technical changes.
- 1st Notice Begins: 01/26/2024
- 1st Notice Ends: 03/11/2024
- 2nd Notice Submitted: 05/02/2024
- Formal JCAR Meeting: 06/04/2024
- Final Rule:
Parking Excise Tax/Implementing and authorized by the Parking Excise Tax Act [35 ILCS 525]
The rulemaking implements the amendments to the Parking Excise Tax Act (35 ILCS 525) enacted by Public Act 102-700, Article 100, effective July 1, 2023, and Public Act 103-9, Article 20, effective July 1, 2023. The amendments to the Parking Excise Tax Act clarify the imposition, collection, and remittance of the tax when booking intermediaries facilitate the use of parking spaces on behalf of registered and unregistered operators of parking areas and garages.
- 1st Notice Begins: 02/16/2024
- 1st Notice Ends: 04/01/2024
- 2nd Notice Submitted: 05/02/2024
- Formal JCAR Meeting: 06/15/2024
- Final Rule:
Informal Conference Board/Implementing Section 2505-510, and authorized by Section 2505-795, of the Civil Administrative Code of Illinois [20 ILCS 2505/2505-510 and2505-795]
This rulemaking extends the time that must remain on the statute of limitations before Informal Conference Board (ICB) rights will be granted from 60 days to 180 days. That ensures the Audit Bureau has enough time to complete the internal review process and issue an assessment when taxpayers do not avail themselves of the ICB. This rulemaking provides that ICB will not hold cases nor make adjustments to issues that are related to pending litigation. This rulemaking also would expand ICB jurisdiction to include audit adjustments that result in reductions to net operating losses rather than assessments or claim denials. This allows taxpayers to seek informal review of the audit adjustments without having to wait until the losses have been used completely and a deficiency results. However, no protest rights will be afforded in these cases to remain consistent with IRS procedure.
- 1st Notice Begins: 03/01/2024
- 1st Notice Ends: 04/15/2024
- 2nd Notice Submitted:
- Formal JCAR Meeting:
- Final Rule:
Electricity Excise Tax Law/Implementing and authorized by Section 2-14 of the Electricity Excise Tax Law [35 ILCS 640].
This rulemaking amends sections of Part 511, Electricity Excise Tax Law, to update sections, reflect new statutory developments, and provide various technical changes.
Section 511.100 is amended to include additional statutory definitions.
Section 511.110 is amended to include additional statutory language regarding delivering suppliers' obligation to collect the tax.
Section 511.120 is amended to reflect the current obligations of delivering suppliers to make estimated tax payments and to make tax payments to the Department by electronic funds transfer.
A new Section 511.125 is added to address the taxation of electricity delivered at electric vehicle charging stations.
Section 511.140 is amended to update the language on exclusions from tax, including the exclusions for Reimagining Energy Vehicle in Illinois ("REV Illinois") Act projects and Manufacturing Illinois Chips for Real Opportunity ("MICRO") Act projects enacted by P.A. 102-669 and P.A. 102-700, respectively.
Section 511.210 is amended to update the registration requirements for delivering suppliers.
Section 511.220 is amended to update the certificate of registration revocation provisions for delivering suppliers.
Section 511.230 is amended to make minor changes to returns and tax payment obligations for delivering suppliers.
Section 511.310 is amended to update the registration provisions for self-assessing purchasers.
Section 511.320 is amended to update the certificate of registration revocation provisions for self-assessing purchasers.
Section 511.330 is amended to make minor changes to returns and direct tax payment obligations for self-assessing purchasers.
A new Section 511.340 is added to address the obligations of delivering suppliers and self-assessing purchasers to maintain books and records.
A new Section 511.230 is added to identify the sections of the Retailers' Occupation Tax Act and Uniform Penalty and Interest Act that apply, as far as practicable, to the subject matter of Law to the same extent as if the provisions were included in the Law.
A new Section 511.360 is added to identify the penalties for violations of the Law and rules.
- 1st Notice Begins: 04/12/2024
- 1st Notice Ends: 05/27/2024
- 2nd Notice Submitted:
- Formal JCAR Meeting:
- Final Rule:
Income Tax Law/Implementing Section 239 as authorized by Section 1401 of the Illinois Income Tax Act [35 ILCS 5] and Section 2505-795 of the Department of Revenue Law [20 ILCS 2505/2505-795].
The proposed rule implements the new Section 239 of the Illinois Income Tax Act, 35 ILCS 5/239, as created and amended by P.A. 102-0700. For tax years beginning on or after January 1, 2025, taxpayers may claim a Manufacturing Illinois Chips for Real Opportunity (MICRO) Investment tax credit for investment in qualified property which is placed in service at the site of a MICRO Illinois Project subject to an agreement between the taxpayer and the Illinois Department of Commerce and Economic Opportunity pursuant to the MICRO Act, 35 ILCS 45. The amount of the credit is equal to 0.5% of the basis of the qualified property and is allowed for the tax year in which the property is placed in service, or if the amount of the credit exceeds the tax liability for that year, the excess credit amount may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year.
- 1st Notice Begins: 04/05/2024
- 1st Notice Ends: 05/20/2024
- 2nd Notice Submitted:
- Formal JCAR Meeting:
- Final Rule:
Implementing the Illinois Retailers' Occupation Tax Act [35 ILCS 120] and authorized by Sections 2505-25 and 2505-795 of the Department of Revenue Law [20 ILCS 2505].
This rulemaking amends Part 130, Retailers' Occupation Tax to enact changes made by P.A. 103-0009 which were not addressed in previous rulemaking.
Section 130.120 is amended to expand the exemption for materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft to include aircraft engines or power plants. Extends the exemption to December 31, 2029.
Section 130.320 is amended to incorporate various changes to dates as well as the percentages of proceeds subject to tax from sales of gasohol, majority blended ethanol fuel, and mid-range ethanol blends.
- 1st Notice Begins: 05/10/2024
- 1st Notice Ends: 06/24/2024
- 2nd Notice Submitted:
- Formal JCAR Meeting:
- Final Rule:
Implementing the Service Occupation Tax Act [35 ILCS 115] and authorized by Sections 2505-100 and 2505-795 of the Department of Revenue Law [20 ILCS 2505].
This rulemaking amends Part 140, Service Occupation Tax to enact changes made by P.A. 103-0009 which were not addressed in previous rulemaking.
Section 140.101 is amended to incorporate various changes to dates as well as the percentages of proceeds subject to tax from sales of gasohol, majority blended ethanol fuel, and mid-range ethanol blends.
Section 140.125 is amended to expand the exemption for materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft to include aircraft engines or power plants. Extends the exemption to December 31, 2029.
- 1st Notice Begins: 05/10/2024
- 1st Notice Ends: 06/24/2024
- 2nd Notice Submitted:
- Formal JCAR Meeting:
- Final Rule:
Implementing the Service Occupation Tax Act [35 ILCS 115] and authorized by Sections 2505-100 and 2505-795 of the Department of Revenue Law [20 ILCS 2505].
This rulemaking amends Part 105, Use Tax to enact changes made by P.A. 103-0009 which were not addressed in previous rulemaking.
Section 150.105 is amended to incorporate various changes to dates as well as the percentages of proceeds subject to tax from sales of gasohol, majority blended ethanol fuel, and mid-range ethanol blends.
- 1st Notice Begins: 05/10/2024
- 1st Notice Ends: 06/24/2024
- 2nd Notice Submitted:
- Formal JCAR Meeting:
- Final Rule:
Implementing the Hotel Operators' Occupation Tax Act [35 ILCS 145] and authorized by Sections 2505-85 and 2505-795 of the Department of Revenue Law [20 ILCS 2505].
This rulemaking amends Part 480, Hotel Operators' Occupation Tax to enact changes made by P.A. 103-0009 which were not addressed in previous rulemaking.
Section 480.101 is amended to extend the exclusion from tax to receipts from the renting of rooms to an entity organized and operated by an organization chartered by the United States Congress for the purpose of providing disaster relief and that possesses an active Exemption Identification Number issued by the Department.
- 1st Notice Begins: 05/10/2024
- 1st Notice Ends: 06/24/2024
- 2nd Notice Submitted:
- Formal JCAR Meeting:
- Final Rule:
Implementing and authorized by Section 914 of the Illinois Income Tax Act, [35 ILCS 5/914]; and Section 8 of the Retailers’ Occupation Tax Act, [35 ILCS 120/8].
This rulemaking updates the address for the Chicago location where administrative hearings are conducted.
- 1st Notice Begins: 05/03/2024
- 1st Notice Ends: 06/17/2024
- 2nd Notice Submitted:
- Formal JCAR Meeting:
- Final Rule: