Illinois General Assembly - Full Text of HB4121

LRB104 15314 AAS 28468 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4121

Introduced 10/15/2025, by Rep. Brad Halbrook, Travis Weaver, Adam M. Niemerg, Jason R. Bunting, Jed Davis, et al.

SYNOPSIS AS INTRODUCED:

20 ILCS 605/605-1075 rep.
20 ILCS 3855/Act rep.
35 ILCS 620/2a.1	from Ch. 120, par. 469a.1
35 ILCS 620/2a.2	from Ch. 120, par. 469a.2
35 ILCS 640/Act rep.
220 ILCS 5/5-204 new
220 ILCS 5/8-103 rep.
220 ILCS 5/8-103A rep.
220 ILCS 5/8-103B rep.
220 ILCS 5/16-108.30 rep.
305 ILCS 20/Act rep.

Provides that the amendatory Act may be referred to as the End the Energy Tax Act. Amends the Public Utilities Revenue Act. Provides that provisions concerning the tax on invested capital and on distribution of electricity are repealed on January 1, 2027. Provides that provisions concerning a return with respect to the tax are repealed on January 1, 2028. Repeals provisions of the Public Utilities Act concerning energy efficiency, demand-response measures and energy efficiency analysis, and the Energy Transition Assistance Fund. Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code to make a conforming change. Repeals the Illinois Power Agency Act, the Electricity Excise Tax Law Act, and the Energy Assistance Act. Amends the Public Utilities Act. Provides that the Legislative Reference Bureau shall prepare for introduction in the 2027 spring session of the General Assembly a bill effecting such changes in the statutes as may be necessary to conform the statutes to the changes in law made by the amendatory Act.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. This Act may be referred to as the End the Energy Tax Act.

(20 ILCS 605/605-1075 rep.)

Section 2. The Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois is amended by repealing Section 605-1075.

(20 ILCS 3855/Act rep.)

Section 5. The Illinois Power Agency Act is repealed.

Section 10. The Public Utilities Revenue Act is amended by changing Sections 2a.1 and 2a.2 as follows:

(35 ILCS 620/2a.1) (from Ch. 120, par. 469a.1)

Sec. 2a.1. Imposition of tax on invested capital and on distribution of electricity.

(a) In addition to the tax imposed by the Illinois Income Tax Act, there is hereby imposed upon every taxpayer (other than an electric cooperative, a school district or unit of local government as defined in Section 1 of Article VII of the Illinois Constitution of 1970), an additional tax as follows:

(i) For the first 500,000,000 kilowatt-hours distributed by the taxpayer in this State during the taxable period, 0.031 cents per kilowatt-hour;

(ii) For the next 1,000,000,000 kilowatt-hours distributed by the taxpayer in this State during the taxable period, 0.050 cents per kilowatt-hour;

(iii) For the next 2,500,000,000 kilowatt-hours distributed by the taxpayer in this State during the taxable period, 0.070 cents per kilowatt-hour;

(iv) For the next 4,000,000,000 kilowatt-hours distributed by the taxpayer in this State during the taxable period, 0.140 cents per kilowatt-hour;

(v) For the next 7,000,000,000 kilowatt-hours distributed by the taxpayer in this State during the taxable period, 0.180 cents per kilowatt-hour;

(vi) For the next 3,000,000,000 kilowatt-hours distributed by the taxpayer in this State during the taxable period, 0.142 cents per kilowatt-hour; and

(vii) For all kilowatt-hours distributed by the taxpayer in this State during the taxable period in excess of 18,000,000,000 kilowatt-hours, 0.131 cents per kilowatt-hour.

(b) There is imposed on electric cooperatives that are required to file reports with the Rural Utilities Service a tax equal to 0.8% of such cooperative's invested capital for the taxable period. The invested capital tax imposed by this subsection shall not be imposed on electric cooperatives not required to file reports with the Rural Utilities Service.

(c) If, for any taxable period, the total amount received by the Department from the tax imposed by subsection (a) exceeds $145,279,553 plus, for taxable periods subsequent to 1998, an amount equal to the lesser of (i) 5% or (ii) the percentage increase in the Consumer Price Index during the immediately preceding taxable period, of the total amount received by the Department from the tax imposed by subsection (a) for the immediately preceding taxable period, determined after allowance of the credit provided for in this subsection, the Department shall issue credit memoranda in the aggregate amount of the excess to each of the taxpayers who paid any amount of tax under subsection (a) for that taxable period in the proportion which the amount paid by the taxpayer bears to the total amount paid by all such taxpayers. This calculation shall be made as of December 1 of the year following the immediately preceding taxable period and shall consist of only those returns with payment then on file with the Department. All future amendments to returns and monies covering this period received after December 1 of the year following the taxable period will not be included in the calculation of the affected taxable period or any other taxable period. The provisions of this subsection are not subject to the Uniform Penalty and Interest Act. Any credit memorandum issued to a taxpayer under this subsection may be used as a credit by the taxpayer against its liability in future taxable periods for tax under subsection (a). Any amount credited to a taxpayer shall not be refunded to the taxpayer unless the taxpayer demonstrates to the reasonable satisfaction of the Department that it will not incur future liability for tax under subsection (a). The Department shall adopt reasonable regulations for the implementation of the provisions of this subsection.

(d) This Section is repealed on January 1, 2027.

(Source: P.A. 90-561, eff. 1-1-98; 90-624, eff. 7-10-98; 91-357, eff. 7-29-99.)

(35 ILCS 620/2a.2) (from Ch. 120, par. 469a.2)

Sec. 2a.2. Annual return, collection and payment. A return with respect to the tax imposed by Section 2a.1 shall be made by every person for any taxable period for which such person is liable for such tax. Such return shall be made on such forms as the Department shall prescribe and shall contain the following information:

1. Taxpayer's name;

2. Address of taxpayer's principal place of business, and address of the principal place of business (if that is a different address) from which the taxpayer engages in the business of distributing electricity in this State;

3. The total equity, in the case of electric cooperatives, in the annual reports filed with the Rural Utilities Service for the taxable period;

3a. The total kilowatt-hours of electricity distributed by a taxpayer, other than an electric cooperative, in this State for the taxable period covered by the return;

4. The amount of tax due for the taxable period (computed on the basis of the amounts set forth in Items 3 and 3a); and

5. Such other reasonable information as may be required by forms or regulations prescribed by the Department.

The returns prescribed by this Section shall be due and shall be filed with the Department not later than the 15th day of the third month following the close of the taxable period. The taxpayer making the return herein provided for shall, at the time of making such return, pay to the Department the remaining amount of tax herein imposed and due for the taxable period. Each taxpayer shall make estimated quarterly payments on the 15th day of the third, sixth, ninth and twelfth months of each taxable period. Such estimated payments shall be 25% of the tax liability for the immediately preceding taxable period or the tax liability that would have been imposed in the immediately preceding taxable period if this amendatory Act of 1979 had been in effect. All moneys received by the Department under Sections 2a.1 and 2a.2 shall be paid into the Personal Property Tax Replacement Fund in the State Treasury.

If any payment provided for in this Section exceeds the taxpayer's liabilities under this Act, as shown on an original return, the taxpayer may credit such excess payment against liability subsequently to be remitted to the Department under this Act, in accordance with reasonable rules adopted by the Department.

The provisions of this Section do not provide for the imposition of the tax under Section 2a.1.

This Section is repealed on January 1, 2028.

(Source: P.A. 100-1171, eff. 1-4-19.)

(35 ILCS 640/Act rep.)

Section 15. The Electricity Excise Tax Law Act is repealed.

Section 20. The Public Utilities Act is amended by adding Section 5-204 as follows:

(220 ILCS 5/5-204 new)

Sec. 5-204. Preparation of bill. The Legislative Reference Bureau shall prepare for introduction in the 2027 spring session of the General Assembly a bill effecting such changes in the statutes as may be necessary to conform the statutes to the changes in law made by this amendatory Act of the 104th General Assembly.

(220 ILCS 5/8-103 rep.)

(220 ILCS 5/8-103A rep.)

(220 ILCS 5/8-103B rep.)

(220 ILCS 5/16-108.30 rep.)

Section 25. The Public Utilities Act is amended by repealing Sections 8-103, 8-103A, 8-103B, and 16-108.30.

(305 ILCS 20/Act rep.)

Section 30. The Energy Assistance Act is repealed.