Ill. Admin. Code tit. 86, § 130.320 - Gasohol, Majority Blended Ethanol, Biodiesel Blends, and 100% Biodiesel
a) Effective
January 1, 1990 and prior to July 1, 2003, sales of gasohol, as defined
in Section 3-40 of the Use Tax Act, are subject to
tax, based upon 70% of the proceeds of sales. On and after July 1, 2003 and on
or before July 1, 2017, tax shall be based upon 80% of the proceeds from sales
of gasohol. On and after July 1, 2017, and prior to January 1, 2024, tax shall
be based upon 100% of the proceeds of sales of gasohol. On and after January 1,
2024, and prior to January 1, 2029, tax shall be based upon 90% of the proceeds
of sales of gasohol. On and after January 1, 2029, tax shall be based upon 100%
of the proceeds of sales of gasohol. Effective July 1, 2003, if at any
time, the tax under the Retailers' Occupation Tax Act (ROTA)
on sales of gasohol is imposed at the rate of 1.25 %, then the tax
imposed by the Act applies to 100% of the proceeds of sales of gasohol made
during that time. [35 ILCS 120/2-10 ]
b)
With respect to majority blended
ethanol fuel, as defined in Section 3-44 of the Use Tax Act,
the tax imposed by the ROTA does not apply to the proceeds of
sales made on or after July 1, 2003 and on or before December 31, 2028, but
applies to 100% of the proceeds of sales made thereafter.
[35 ILCS
120/2-10 ]
c)
With respect to biodiesel blends,
as defined in Section 3-42 of the Use Tax Act, with no less
than 1% and no more than 10% biodiesel, the tax imposed by the ROTA
applies to 80% of the proceeds of sales made on or after July 1, 2003
and on or before December 31, 2018 and 100% of the proceeds of sales made after
December 31, 2018 and before January 1, 2024. On and after January 1, 2024 and
on or before December 31, 2030, the taxation of biodiesel, renewable diesel,
and biodiesel blends shall be as provided in Section 3-5.1 of the Use Tax
Act which is reflected in subsection (e) of this Section. If
at any time, however, the tax under the ROTA on sales of
biodiesel blends, as defined in the Use Tax Act, with no less than 1% and no
more than 10% biodiesel is imposed at the rate of 1.25%, then the tax imposed
by the ROTA applies to 100% of the proceeds of sales of
biodiesel blends with no less than 1% and no more than 10% biodiesel made
during that time. [35 ILCS 120/2-10 ]
d)
With respect to biodiesel, as
defined in Section 3-41 of the Use Tax Act, and biodiesel
blends, as defined in Section 3-42 of the Use Tax Act, with
more than 10% but no more than 99% biodiesel, the tax imposed by the
ROTA does not apply to the proceeds of sales made on or after July 1,
2003 and on or before December 31, 2023. On and after January 1, 2024 and on or
before December 31, 2030, the taxation of biodiesel, renewable diesel, and
biodiesel blends shall be as provided in Section 3-5.1 of the Use Tax
Act which is reflected in subsection (e) below. [35 ILCS
120/2-10 ]
e) Tax rate on biodiesel, renewable diesel,
and biodiesel blends, on January 1, 2024 through December 31, 2030.
1)
On and after January 1, 2024 and
on or before December 31, 2030, the taxes imposed by the Use Tax Act
, the Service Use Tax Act, the Service Occupation Tax Act, or the
Retailers' Occupation Tax Act apply to 100% of the proceeds of sales of (i)
biodiesel blends with no less than 1% and no more than 10% of biodiesel and
(ii) any diesel fuel containing no less than 1% and no more than 10% of
renewable diesel. [35 ILCS 105/3-5. 1(a)]
2)
From January 1, 2024 through March
31, 2024, the taxes imposed by the Use Tax Act, the Service
Use Tax Act, the Service Occupation Tax Act, or the Retailers' Occupation Tax
Act do not apply to the proceeds of sales of any diesel fuel containing more
than 10% biodiesel or renewable diesel. [35 ILCS
105/3-5. 1(b)]
3)
From April 1, 2024 through
November 30, 2024, the taxes imposed by the Use Tax Act, the
Service Use Tax Act, the Service Occupation Tax Act, or the Retailers'
Occupation Tax Act do not apply to the proceeds of sales of any diesel fuel
containing more than 13% biodiesel or renewable diesel. [35 ILCS
105/3-5. 1(c)]
4)
From December 1, 2024 through
March 31, 2025, the taxes imposed by the Use Tax Act, the
Service Use Tax Act, the Service Occupation Tax Act, or the Retailers'
Occupation Tax Act do not apply to the proceeds of sales of any diesel fuel
containing more than 10% biodiesel or renewable diesel. [35 ILCS
105/3-5. 1(d)]
5)
From April 1, 2025 through
November 30, 2025, the taxes imposed by the Use Tax Act, the
Service Use Tax Act, the Service Occupation Tax Act, or the Retailers'
Occupation Tax Act do not apply to the proceeds of sales of any diesel fuel
containing more than 16% biodiesel or renewable diesel. [35 ILCS
105/3-5. 1(e)]
6)
From December 1, 2025 through
March 31, 2026, the taxes imposed by the Use Tax Act, the
Service Use Tax Act, the Service Occupation Tax Act, or the Retailers'
Occupation Tax Act do not apply to the proceeds of sales of any diesel fuel
containing more than 10% biodiesel or renewable diesel. [35 ILCS
105/3-5. 1(f)]
7)
On and after April 1, 2026 and on
or before November 30, 2030, the taxes imposed by the Use Tax Act
, the Service Use Tax Act, the Service Occupation Tax Act, or the
Retailers' Occupation Tax Act do not apply to the proceeds of sales of any
diesel fuel containing more than 19% biodiesel or renewable diesel; except
that, from December 1 of calendar years 2026, 2027, 2028, and 2029 through
March 31 of the following calendar year, and from December 1, 2030 through
December 31, 2030, the taxes imposed by the Use Tax Act, the
Service Use Tax Act, the Service Occupation Tax Act, or the Retailers'
Occupation Tax Act do not apply to the proceeds of sales of any diesel fuel
containing more than 10% biodiesel or renewable diesel. [35 ILCS
105/3-5. 1(g)]
f)
With respect to mid-range ethanol
blends, as defined in Section 3-44.3 of the Use Tax Act, the tax imposed
by the ROTA applies to 80% of the proceeds of sales made on or
after January 1, 2024 and on or before December 31, 2028 and 100% of the
proceeds of sales made after December 31, 2028. If, at any time, however, the
tax under the ROTA on sales of mid-range ethanol blends is
imposed at the rate of 1.25%, then the tax imposed by the ROTA
applies to 100% of the proceeds of sales of mid-range ethanol blends
made during that time. [35 ILCS 120/2-10 ]
Notes
Amended at 29 Ill. Reg. 7004, effective April 26, 2005
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