Illinois DOR Clarifies Utility Tax Obligations for Energy Suppliers

The Illinois Department of Revenue (DOR) issued a general information letter responding to inquiries about various utility taxes in Illinois. The letter provides an overview of the Electricity Excise Tax Law, the Public Utilities Revenue Tax Law, the Gas Revenue Tax Act, and related definitions to determine tax obligations for businesses that supply electricity, gas, or operate solar or cogeneration facilities. The Department concludes that alternative gas suppliers are not liable for the invested capital tax under the Gas Revenue Tax Act and provides guidance on when a business may be considered a “delivering supplier” subject to electricity excise tax ...