IL
Illinois Senate Bill SB1340

Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1340 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1340 Introduced 1/28/2025, by Sen. Dale Fowler SYNOPSIS AS INTRODUCED: 35 ILCS 173/5-1035 ILCS 615/1 from Ch. 120, par. 467.1635 ILCS 640/2-4 Amends the Gas Use Tax Law. Exempts certain business enterprises from taxation under the Act. Amends the Gas Revenue Tax Act. Provides that the definition of "gross receipts" does not include consideration received from certain business enterprises. Amends the Electricity Excise Tax Law. Provides that the tax under the Act is not imposed with respect to any use by the purchaser in the process of manufacturing or assembling tangible personal property for wholesale or for retail sale or lease. Effective immediately. LRB104 06513 HLH 16549 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1340 Introduced 1/28/2025, by Sen. Dale Fowler SYNOPSIS AS INTRODUCED: 35 ILCS 173/5-1035 ILCS 615/1 from Ch. 120, par. 467.1635 ILCS 640/2-4 35 ILCS 173/5-10 35 ILCS 615/1 from Ch. 120, par. 467.16 35 ILCS 640/2-4 Amends the Gas Use Tax Law. Exempts certain business enterprises from taxation under the Act. Amends the Gas Revenue Tax Act. Provides that the definition of "gross receipts" does not include consideration received from certain business enterprises. Amends the Electricity Excise Tax Law. Provides that the tax under the Act is not imposed with respect to any use by the purchaser in the process of manufacturing or assembling tangible personal property for wholesale or for retail sale or lease. Effective immediately. LRB104 06513 HLH 16549 b LRB104 06513 HLH 16549 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1340 Introduced 1/28/2025, by Sen. Dale Fowler SYNOPSIS AS INTRODUCED:
33 35 ILCS 173/5-1035 ILCS 615/1 from Ch. 120, par. 467.1635 ILCS 640/2-4 35 ILCS 173/5-10 35 ILCS 615/1 from Ch. 120, par. 467.16 35 ILCS 640/2-4
44 35 ILCS 173/5-10
55 35 ILCS 615/1 from Ch. 120, par. 467.16
66 35 ILCS 640/2-4
77 Amends the Gas Use Tax Law. Exempts certain business enterprises from taxation under the Act. Amends the Gas Revenue Tax Act. Provides that the definition of "gross receipts" does not include consideration received from certain business enterprises. Amends the Electricity Excise Tax Law. Provides that the tax under the Act is not imposed with respect to any use by the purchaser in the process of manufacturing or assembling tangible personal property for wholesale or for retail sale or lease. Effective immediately.
88 LRB104 06513 HLH 16549 b LRB104 06513 HLH 16549 b
99 LRB104 06513 HLH 16549 b
1010 A BILL FOR
1111 SB1340LRB104 06513 HLH 16549 b SB1340 LRB104 06513 HLH 16549 b
1212 SB1340 LRB104 06513 HLH 16549 b
1313 1 AN ACT concerning revenue.
1414 2 Be it enacted by the People of the State of Illinois,
1515 3 represented in the General Assembly:
1616 4 Section 5. The Gas Use Tax Law is amended by changing
1717 5 Section 5-10 as follows:
1818 6 (35 ILCS 173/5-10)
1919 7 Sec. 5-10. Imposition of tax. Beginning October 1, 2003, a
2020 8 tax is imposed upon the privilege of using in this State gas
2121 9 obtained in a purchase of out-of-state gas at the rate of 2.4
2222 10 cents per therm or 5% of the purchase price for the billing
2323 11 period, whichever is the lower rate. Such tax rate shall be
2424 12 referred to as the "self-assessing purchaser tax rate".
2525 13 Beginning with bills issued by delivering suppliers on and
2626 14 after October 1, 2003, purchasers may elect an alternative tax
2727 15 rate of 2.4 cents per therm to be paid under the provisions of
2828 16 Section 5-15 of this Law to a delivering supplier maintaining
2929 17 a place of business in this State. Such tax rate shall be
3030 18 referred to as the "alternate tax rate". The tax imposed under
3131 19 this Section shall not apply to gas used by business
3232 20 enterprises certified under Section 9-222.1 of the Public
3333 21 Utilities Act or Section 605-1115 of the Department of
3434 22 Commerce and Economic Opportunity Law of the Civil
3535 23 Administrative Code of Illinois, as amended, to the extent of
3636
3737
3838
3939 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1340 Introduced 1/28/2025, by Sen. Dale Fowler SYNOPSIS AS INTRODUCED:
4040 35 ILCS 173/5-1035 ILCS 615/1 from Ch. 120, par. 467.1635 ILCS 640/2-4 35 ILCS 173/5-10 35 ILCS 615/1 from Ch. 120, par. 467.16 35 ILCS 640/2-4
4141 35 ILCS 173/5-10
4242 35 ILCS 615/1 from Ch. 120, par. 467.16
4343 35 ILCS 640/2-4
4444 Amends the Gas Use Tax Law. Exempts certain business enterprises from taxation under the Act. Amends the Gas Revenue Tax Act. Provides that the definition of "gross receipts" does not include consideration received from certain business enterprises. Amends the Electricity Excise Tax Law. Provides that the tax under the Act is not imposed with respect to any use by the purchaser in the process of manufacturing or assembling tangible personal property for wholesale or for retail sale or lease. Effective immediately.
4545 LRB104 06513 HLH 16549 b LRB104 06513 HLH 16549 b
4646 LRB104 06513 HLH 16549 b
4747 A BILL FOR
4848
4949
5050
5151
5252
5353 35 ILCS 173/5-10
5454 35 ILCS 615/1 from Ch. 120, par. 467.16
5555 35 ILCS 640/2-4
5656
5757
5858
5959 LRB104 06513 HLH 16549 b
6060
6161
6262
6363
6464
6565
6666
6767
6868
6969 SB1340 LRB104 06513 HLH 16549 b
7070
7171
7272 SB1340- 2 -LRB104 06513 HLH 16549 b SB1340 - 2 - LRB104 06513 HLH 16549 b
7373 SB1340 - 2 - LRB104 06513 HLH 16549 b
7474 1 such exemption and during the period of time specified by the
7575 2 Department of Commerce and Economic Opportunity.
7676 3 The tax imposed under this Section does not apply to gas
7777 4 used by any business enterprise that is properly assigned or
7878 5 included within one of the following Standard Industrial
7979 6 Classifications, as designated in the 1987 Standard Industrial
8080 7 Classification Manual prepared by the federal Office of
8181 8 Management and Budget: 10; 12; 13; 14; 21; 22; 23; 24; 25; 26;
8282 9 27; 28; 29; 30; 31; 32; 33; 34; 35; 36; 37; 38; or 39.
8383 10 (Source: P.A. 103-595, eff. 6-26-24.)
8484 11 Section 10. The Gas Revenue Tax Act is amended by changing
8585 12 Section 1 as follows:
8686 13 (35 ILCS 615/1) (from Ch. 120, par. 467.16)
8787 14 Sec. 1. For the purposes of this Act: "Gross receipts"
8888 15 means the consideration received for gas distributed,
8989 16 supplied, furnished or sold to persons for use or consumption
9090 17 and not for resale, and for all services (including the
9191 18 transportation or storage of gas for an end-user) rendered in
9292 19 connection therewith, and shall include cash, services and
9393 20 property of every kind or nature, and shall be determined
9494 21 without any deduction on account of the cost of the service,
9595 22 product or commodity supplied, the cost of materials used,
9696 23 labor or service costs, or any other expense whatsoever.
9797 24 However, "gross receipts" shall not include receipts from:
9898
9999
100100
101101
102102
103103 SB1340 - 2 - LRB104 06513 HLH 16549 b
104104
105105
106106 SB1340- 3 -LRB104 06513 HLH 16549 b SB1340 - 3 - LRB104 06513 HLH 16549 b
107107 SB1340 - 3 - LRB104 06513 HLH 16549 b
108108 1 (i) any minimum or other charge for gas or gas service
109109 2 where the customer has taken no therms of gas;
110110 3 (ii) any charge for a dishonored check;
111111 4 (iii) any finance or credit charge, penalty or charge
112112 5 for delayed payment, or discount for prompt payment;
113113 6 (iv) any charge for reconnection of service or for
114114 7 replacement or relocation of facilities;
115115 8 (v) any advance or contribution in aid of
116116 9 construction;
117117 10 (vi) repair, inspection or servicing of equipment
118118 11 located on customer premises;
119119 12 (vii) leasing or rental of equipment, the leasing or
120120 13 rental of which is not necessary to distributing,
121121 14 furnishing, supplying, selling, transporting or storing
122122 15 gas;
123123 16 (viii) any sale to a customer if the taxpayer is
124124 17 prohibited by federal or State constitution, treaty,
125125 18 convention, statute or court decision from recovering the
126126 19 related tax liability from such customer;
127127 20 (ix) any charges added to customers' bills pursuant to
128128 21 the provisions of Section 9-221 or Section 9-222 of the
129129 22 Public Utilities Act, as amended, or any charges added to
130130 23 customers' bills by taxpayers who are not subject to rate
131131 24 regulation by the Illinois Commerce Commission for the
132132 25 purpose of recovering any of the tax liabilities or other
133133 26 amounts specified in such provisions of such Act; and
134134
135135
136136
137137
138138
139139 SB1340 - 3 - LRB104 06513 HLH 16549 b
140140
141141
142142 SB1340- 4 -LRB104 06513 HLH 16549 b SB1340 - 4 - LRB104 06513 HLH 16549 b
143143 SB1340 - 4 - LRB104 06513 HLH 16549 b
144144 1 (x) prior to October 1, 2003, any charge for gas or gas
145145 2 services to a customer who acquired contractual rights for
146146 3 the direct purchase of gas or gas services originating
147147 4 from an out-of-state supplier or source on or before March
148148 5 1, 1995, except for those charges solely related to the
149149 6 local distribution of gas by a public utility. This
150150 7 exemption includes any charge for gas or gas service,
151151 8 except for those charges solely related to the local
152152 9 distribution of gas by a public utility, to a customer who
153153 10 maintained an account with a public utility (as defined in
154154 11 Section 3-105 of the Public Utilities Act) for the
155155 12 transportation of customer-owned gas on or before March 1,
156156 13 1995. The provisions of this amendatory Act of 1997 are
157157 14 intended to clarify, rather than change, existing law as
158158 15 to the meaning and scope of this exemption. This exemption
159159 16 (x) expires on September 30, 2003.
160160 17 In case credit is extended, the amount thereof shall be
161161 18 included only as and when payments are received.
162162 19 "Gross receipts" shall not include consideration received
163163 20 from business enterprises certified under Section 9-222.1 of
164164 21 the Public Utilities Act, as amended, to the extent of such
165165 22 exemption and during the period of time specified by the
166166 23 Department of Commerce and Economic Opportunity.
167167 24 "Gross receipts" does not include consideration received
168168 25 from any business enterprise that is properly assigned or
169169 26 included within one of the following Standard Industrial
170170
171171
172172
173173
174174
175175 SB1340 - 4 - LRB104 06513 HLH 16549 b
176176
177177
178178 SB1340- 5 -LRB104 06513 HLH 16549 b SB1340 - 5 - LRB104 06513 HLH 16549 b
179179 SB1340 - 5 - LRB104 06513 HLH 16549 b
180180 1 Classifications, as designated in the 1987 Standard Industrial
181181 2 Classification Manual prepared by the federal Office of
182182 3 Management and Budget: 10; 12; 13; 14; 21; 22; 23; 24; 25; 26;
183183 4 27; 28; 29; 30; 31; 32; 33; 34; 35; 36; 37; 38; or 39.
184184 5 "Department" means the Department of Revenue of the State
185185 6 of Illinois.
186186 7 "Director" means the Director of Revenue for the
187187 8 Department of Revenue of the State of Illinois.
188188 9 "Taxpayer" means a person engaged in the business of
189189 10 distributing, supplying, furnishing or selling gas for use or
190190 11 consumption and not for resale.
191191 12 "Person" means any natural individual, firm, trust,
192192 13 estate, partnership, association, joint stock company, joint
193193 14 adventure, corporation, limited liability company, or a
194194 15 receiver, trustee, guardian or other representative appointed
195195 16 by order of any court, or any city, town, county or other
196196 17 political subdivision of this State.
197197 18 "Invested capital" means that amount equal to (i) the
198198 19 average of the balances at the beginning and end of each
199199 20 taxable period of the taxpayer's total stockholder's equity
200200 21 and total long-term debt, less investments in and advances to
201201 22 all corporations, as set forth on the balance sheets included
202202 23 in the taxpayer's annual report to the Illinois Commerce
203203 24 Commission for the taxable period; (ii) multiplied by a
204204 25 fraction determined under Sections 301 and 304(a) of the
205205 26 "Illinois Income Tax Act" and reported on the Illinois income
206206
207207
208208
209209
210210
211211 SB1340 - 5 - LRB104 06513 HLH 16549 b
212212
213213
214214 SB1340- 6 -LRB104 06513 HLH 16549 b SB1340 - 6 - LRB104 06513 HLH 16549 b
215215 SB1340 - 6 - LRB104 06513 HLH 16549 b
216216 1 tax return for the taxable period ending in or with the taxable
217217 2 period in question. However, notwithstanding the income tax
218218 3 return reporting requirement stated above, beginning July 1,
219219 4 1979, no taxpayer's denominators used to compute the sales,
220220 5 property or payroll factors under subsection (a) of Section
221221 6 304 of the Illinois Income Tax Act shall include payroll,
222222 7 property or sales of any corporate entity other than the
223223 8 taxpayer for the purposes of determining an allocation for the
224224 9 invested capital tax. This amendatory Act of 1982, Public Act
225225 10 82-1024, is not intended to and does not make any change in the
226226 11 meaning of any provision of this Act, it having been the intent
227227 12 of the General Assembly in initially enacting the definition
228228 13 of "invested capital" to provide for apportionment of the
229229 14 invested capital of each company, based solely upon the sales,
230230 15 property and payroll of that company.
231231 16 "Taxable period" means each period which ends after the
232232 17 effective date of this Act and which is covered by an annual
233233 18 report filed by the taxpayer with the Illinois Commerce
234234 19 Commission.
235235 20 (Source: P.A. 93-31, eff. 10-1-03; 94-793, eff. 5-19-06.)
236236 21 Section 15. The Electricity Excise Tax Law is amended by
237237 22 changing Section 2-4 as follows:
238238 23 (35 ILCS 640/2-4)
239239 24 Sec. 2-4. Tax imposed.
240240
241241
242242
243243
244244
245245 SB1340 - 6 - LRB104 06513 HLH 16549 b
246246
247247
248248 SB1340- 7 -LRB104 06513 HLH 16549 b SB1340 - 7 - LRB104 06513 HLH 16549 b
249249 SB1340 - 7 - LRB104 06513 HLH 16549 b
250250 1 (a) Except as provided in subsection (b), a tax is imposed
251251 2 on the privilege of using in this State electricity purchased
252252 3 for use or consumption and not for resale, other than by
253253 4 municipal corporations owning and operating a local
254254 5 transportation system for public service, at the following
255255 6 rates per kilowatt-hour delivered to the purchaser:
256256 7 (i) For the first 2000 kilowatt-hours used or consumed
257257 8 in a month: 0.330 cents per kilowatt-hour;
258258 9 (ii) For the next 48,000 kilowatt-hours used or
259259 10 consumed in a month: 0.319 cents per kilowatt-hour;
260260 11 (iii) For the next 50,000 kilowatt-hours used or
261261 12 consumed in a month: 0.303 cents per kilowatt-hour;
262262 13 (iv) For the next 400,000 kilowatt-hours used or
263263 14 consumed in a month: 0.297 cents per kilowatt-hour;
264264 15 (v) For the next 500,000 kilowatt-hours used or
265265 16 consumed in a month: 0.286 cents per kilowatt-hour;
266266 17 (vi) For the next 2,000,000 kilowatt-hours used or
267267 18 consumed in a month: 0.270 cents per kilowatt-hour;
268268 19 (vii) For the next 2,000,000 kilowatt-hours used or
269269 20 consumed in a month: 0.254 cents per kilowatt-hour;
270270 21 (viii) For the next 5,000,000 kilowatt-hours used or
271271 22 consumed in a month: 0.233 cents per kilowatt-hour;
272272 23 (ix) For the next 10,000,000 kilowatt-hours used or
273273 24 consumed in a month: 0.207 cents per kilowatt-hour;
274274 25 (x) For all electricity in excess of 20,000,000
275275 26 kilowatt-hours used or consumed in a month: 0.202 cents
276276
277277
278278
279279
280280
281281 SB1340 - 7 - LRB104 06513 HLH 16549 b
282282
283283
284284 SB1340- 8 -LRB104 06513 HLH 16549 b SB1340 - 8 - LRB104 06513 HLH 16549 b
285285 SB1340 - 8 - LRB104 06513 HLH 16549 b
286286 1 per kilowatt-hour.
287287 2 Provided, that in lieu of the foregoing rates, the tax is
288288 3 imposed on a self-assessing purchaser at the rate of 5.1% of
289289 4 the self-assessing purchaser's purchase price for all
290290 5 electricity distributed, supplied, furnished, sold,
291291 6 transmitted and delivered to the self-assessing purchaser in a
292292 7 month.
293293 8 (b) A tax is imposed on the privilege of using in this
294294 9 State electricity purchased from a municipal system or
295295 10 electric cooperative, as defined in Article XVII of the Public
296296 11 Utilities Act, which has not made an election as permitted by
297297 12 either Section 17-200 or Section 17-300 of such Act, at the
298298 13 lesser of 0.32 cents per kilowatt hour of all electricity
299299 14 distributed, supplied, furnished, sold, transmitted, and
300300 15 delivered by such municipal system or electric cooperative to
301301 16 the purchaser or 5% of each such purchaser's purchase price
302302 17 for all electricity distributed, supplied, furnished, sold,
303303 18 transmitted, and delivered by such municipal system or
304304 19 electric cooperative to the purchaser, whichever is the lower
305305 20 rate as applied to each purchaser in each billing period.
306306 21 (c) The tax imposed by this Section 2-4 is not imposed with
307307 22 respect to any use of electricity by business enterprises
308308 23 certified under Section 9-222.1 or 9-222.1A of the Public
309309 24 Utilities Act, as amended, to the extent of such exemption and
310310 25 during the time specified by the Department of Commerce and
311311 26 Economic Opportunity; or with respect to any transaction in
312312
313313
314314
315315
316316
317317 SB1340 - 8 - LRB104 06513 HLH 16549 b
318318
319319
320320 SB1340- 9 -LRB104 06513 HLH 16549 b SB1340 - 9 - LRB104 06513 HLH 16549 b
321321 SB1340 - 9 - LRB104 06513 HLH 16549 b
322322 1 interstate commerce, or otherwise, to the extent to which such
323323 2 transaction may not, under the Constitution and statutes of
324324 3 the United States, be made the subject of taxation by this
325325 4 State.
326326 5 (d) The tax imposed by this Section 2-4 is not imposed with
327327 6 respect to any use of electricity at a REV Illinois Project
328328 7 site that has received a certification for tax exemption from
329329 8 the Department of Commerce and Economic Opportunity pursuant
330330 9 to Section 95 of the Reimagining Energy and Vehicles in
331331 10 Illinois Act, to the extent of such exemption, which shall be
332332 11 no more than 10 years.
333333 12 (e) The tax imposed by this Section 2-4 is not imposed with
334334 13 respect to any use of electricity at a project site that has
335335 14 received a certification for tax exemption from the Department
336336 15 of Commerce and Economic Opportunity pursuant to the
337337 16 Manufacturing Illinois Chips for Real Opportunity (MICRO) Act,
338338 17 to the extent of such exemption, which shall be no more than 10
339339 18 years.
340340 19 (f) The tax imposed by this Section 2-4 is not imposed with
341341 20 respect to any use of electricity at a quantum computing
342342 21 campus that has received a certification for tax exemption
343343 22 from the Department of Commerce and Economic Opportunity
344344 23 pursuant to Section 605-1115 of the Department of Commerce and
345345 24 Economic Opportunity Law of the Civil Administrative Code of
346346 25 Illinois to the extent of the exemption and during the period
347347 26 of time specified by the Department of Commerce and Economic
348348
349349
350350
351351
352352
353353 SB1340 - 9 - LRB104 06513 HLH 16549 b
354354
355355
356356 SB1340- 10 -LRB104 06513 HLH 16549 b SB1340 - 10 - LRB104 06513 HLH 16549 b
357357 SB1340 - 10 - LRB104 06513 HLH 16549 b
358358 1 Opportunity.
359359 2 (g) The tax imposed by this Section 2-4 is not imposed with
360360 3 respect to any use by the purchaser in the process of
361361 4 manufacturing or assembling tangible personal property for
362362 5 wholesale or for retail sale or lease.
363363 6 (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
364364 7 102-1125, eff. 2-3-23; 103-595, eff. 6-26-24.)
365365
366366
367367
368368
369369
370370 SB1340 - 10 - LRB104 06513 HLH 16549 b