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Electricity Distribution & Invested Capital Taxes

Legal Reference

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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.

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 - Use the Tax Rate Database to determine the monthly rate, which is based on the kilowatt-hours (kwhs).

Invested Capital Tax - Use the Tax Rate Database to determine tax rate for 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 with an annual liability of $20,000 or more in the preceding calendar year must remit any tax payment by Electronic Funds Transfer.

Questions?

  • Call us at: 1 217 782-5906
  • Mail Form ICT-4 to:
    ATTN: INVESTED CAPITAL TAX
    ILLINOIS DEPARTMENT OF REVENUE
    PO BOX 19019
    SPRINGFIELD IL 62794-9019