Ill. Admin. Code tit. 86, § 511.150 - Exclusions From Tax
a)
Federal Government. Electricity Excise Tax is not imposed with respect to any
transaction in interstate commerce, or otherwise, to the extent to which such
transaction may not, under the Constitution and statutes of the United States,
be made the subject of taxation by this State. [35 ILCS
640/2-4(c) ] For example, the federal
government is not taxable under the Electricity Excise Tax Law . However, the
State of Illinois and any other state or local government is subject to tax
under the Electricity Excise Tax Law . Examples of the federal government
include, but are not limited to, entities such as: the three main branches of
government, the Executive, Legislative and Judicial, and the U.S. Postal
Service. A sale of electricity to the federal courthouse would be exempt;
however, a sale to a federal judge for his own use would not be
exempt.
b) Entities that are exempt
from taxation by federal statute are not subject to Electricity Excise Tax
liability. For example, federal credit unions are not subject to Electricity
Excise Tax liability pursuant to
12 USC
1768. Further, Amtrak is not subject to
Electricity Excise Tax liability pursuant to
49 USC
24301(l).
c) Businesses Located in Enterprise Zones.
Electricity Excise Tax is not imposed on business enterprises that are
certified by the Department of Commerce and Community Affairs under Section
9-222.1 of the Public Utilities Act to the extent of such exemption and during
the time specified by the Department of Commerce and Community Affairs.
[35 ILCS
640/2-4(c) ]
d) Businesses Certified as High Impact
Businesses. Electricity Excise Tax is not imposed on business enterprises that
are certified by the Department of Commerce and Community Affairs as High
Impact Businesses under Section 9-222.1A of the Public Utilities Act to the
extent of such exemption and during the time specified by the Department of
Commerce and Community Affairs. [35 ILCS
640/2-4(c) ] In order to qualify for
this exclusion from Electricity Excise Tax liability, the High Impact Business
must be properly registered with the Department as a self-assessing purchaser
under Section 2-10 of the Electricity Excise Tax Law (see Section
511.300
of this Part). [220 ILCS
5/9-222.1A ]
e) Delivering suppliers are required to
maintain documentation in their books and records to support the exemptions
described in this Section. In order to document the exemptions listed in
subsections (c) and (d) of this Section, delivering suppliers must maintain the
current certificate of eligibility issued by the Department of Commerce and
Community Affairs to the businesses claiming the exemption.
Notes
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