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91_SB0334enr
SB334 Enrolled LRB9102941NTsb
1 AN ACT regarding electricity excise taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Enterprise Zone Act is amended
5 by changing Section 5.5 as follows:
6 (20 ILCS 655/5.5) (from Ch. 67 1/2, par. 609.1)
7 Sec. 5.5. High Impact Business.
8 (a) In order to respond to unique opportunities to
9 assist in the encouragement, development, growth and
10 expansion of the private sector through large scale
11 investment and development projects, the Department is
12 authorized to receive and approve applications for the
13 designation of "High Impact Businesses" in Illinois subject
14 to the following conditions:
15 (1) such applications may be submitted at any time
16 during the year;
17 (2) such business is not located, at the time of
18 designation, in an enterprise zone designated pursuant to
19 this Act;
20 (3) the business intends to make a minimum
21 investment of $12,000,000 which will be placed in service
22 in qualified property and intends to create 500 full-time
23 equivalent jobs at a designated location in Illinois or
24 intends to make a minimum investment of $30,000,000 which
25 will be placed in service in qualified property and
26 intends to retain 1,500 full-time jobs at a designated
27 location in Illinois. The business must certify in
28 writing that the investments would not be placed in
29 service in qualified property and the job creation or job
30 retention would not occur without the tax credits and
31 exemptions set forth in subsection (b) of this Section.
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1 The terms "placed in service" and "qualified property"
2 have the same meanings as described in subsection (h) of
3 Section 201 of the Illinois Income Tax Act; and
4 (4) no later than 90 days after an application is
5 submitted, the Department shall notify the applicant of
6 the Department's determination of the qualification of
7 the proposed High Impact Business under this Section.
8 (b) Businesses designated as High Impact Businesses
9 pursuant to this Section shall qualify for the credits and
10 exemptions described in the following Acts: Section 9-222 and
11 Section 9-222.1A of The Public Utilities Act, subsection (h)
12 of Section 201 of the Illinois Income Tax Act; and, Section
13 1d of the Retailers' Occupation Tax Act, provided that these
14 credits and exemptions described in these Acts shall not be
15 authorized until the minimum investments set forth in
16 subsection (a) of this Section have been placed in service in
17 qualified properties and, in the case of the exemptions
18 described in the Public Utilities Act and Section 1d of the
19 Retailers' Occupation Tax Act, the minimum full-time
20 equivalent jobs or full-time jobs set forth in subsection (a)
21 of this Section have been created or retained. Businesses
22 designated as High Impact Businesses under this Section shall
23 also qualify for the exemption described in Section 5l of the
24 Retailers' Occupation Tax Act. The credit provided in
25 subsection (h) of Section 201 of the Illinois Income Tax Act
26 shall be applicable to investments in qualified property as
27 set forth in subsection (a) of this Section.
28 (c) High Impact Businesses located in federally
29 designated foreign trade zones or sub-zones are also eligible
30 for additional credits, exemptions and deductions as
31 described in the following Acts: Section 9-221 and Section
32 9-222.1 of the Public Utilities Act; and subsection (g) of
33 Section 201, and Section 203 of the Illinois Income Tax Act.
34 (d) Existing Illinois businesses which apply for
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1 designation as a High Impact Business must provide the
2 Department with the prospective plan for which 1,500
3 full-time jobs would be eliminated in the event that the
4 business is not designated.
5 (e) New proposed facilities which apply for designation
6 as High Impact Business must provide the Department with
7 proof of alternative non-Illinois sites which would receive
8 the proposed investment and job creation in the event that
9 the business is not designated as a High Impact Business.
10 (f) In the event that a business is designated a High
11 Impact Business and it is later determined after reasonable
12 notice and an opportunity for a hearing as provided under The
13 Illinois Administrative Procedure Act, that the business
14 would have placed in service in qualified property the
15 investments and created or retained the requisite number of
16 jobs without the benefits of the High Impact Business
17 designation, the Department shall be required to immediately
18 revoke the designation and notify the Director of the
19 Department of Revenue who shall begin proceedings to recover
20 all wrongfully exempted State taxes with interest. The
21 business shall also be ineligible for all State funded
22 Department programs for a period of 10 years.
23 (g) The Department shall revoke a High Impact Business
24 designation if the participating business fails to comply
25 with the terms and conditions of the designation.
26 (h) Prior to designating a business, the Department
27 shall provide the members of the General Assembly and
28 Illinois Economic and Fiscal Commission with a report setting
29 forth the terms and conditions of the designation and
30 guarantees that have been received by the Department in
31 relation to the proposed business being designated.
32 (Source: P.A. 89-89, eff. 6-30-95.)
33 Section 10. The Electricity Excise Tax Law is amended by
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1 changing Sections 2-3 and 2-4 as follows:
2 (35 ILCS 640/2-3)
3 Sec. 2-3. Definitions. As used in this Law, unless the
4 context clearly requires otherwise:
5 (a) "Department" means the Department of Revenue of the
6 State of Illinois.
7 (b) "Director" means the Director of the Department of
8 Revenue of the State of Illinois.
9 (c) "Person" means any natural individual, firm, trust,
10 estate, partnership, association, joint stock company, joint
11 venture, corporation, limited liability company, or a
12 receiver, trustee, guardian, or other representative
13 appointed by order of any court, or any city, town, village,
14 county, or other political subdivision of this State.
15 (d) "Purchase price" means the consideration paid for
16 the distribution, supply, furnishing, sale, transmission or
17 delivery of electricity to a person for non-residential use
18 or consumption (and for both residential and non-residential
19 use or consumption in the case of electricity purchased from
20 a municipal system or electric cooperative described in
21 subsection (b) of Section 2-4) and not for resale, and for
22 all services directly related to the production, transmission
23 or distribution of electricity distributed, supplied,
24 furnished, sold, transmitted or delivered for non-residential
25 use or consumption, and includes transition charges imposed
26 in accordance with Article XVI of the Public Utilities Act
27 and instrument funding charges imposed in accordance with
28 Article XVIII of the Public Utilities Act, as well as cash,
29 services and property of every kind or nature, and shall be
30 determined without any deduction on account of the cost of
31 the service, product or commodity supplied, the cost of
32 materials used, labor or service costs, or any other expense
33 whatsoever. However, "purchase price" shall not include
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1 consideration paid for:
2 (i) any charge for a dishonored check;
3 (ii) any finance or credit charge, penalty or
4 charge for delayed payment, or discount for prompt
5 payment;
6 (iii) any charge for reconnection of service or for
7 replacement or relocation of facilities;
8 (iv) any advance or contribution in aid of
9 construction;
10 (v) repair, inspection or servicing of equipment
11 located on customer premises;
12 (vi) leasing or rental of equipment, the leasing or
13 rental of which is not necessary to furnishing, supplying
14 or selling electricity;
15 (vii) any purchase by a purchaser if the supplier
16 is prohibited by federal or State constitution, treaty,
17 convention, statute or court decision from recovering the
18 related tax liability from such purchaser; and
19 (viii) any amounts added to purchasers' bills
20 because of charges made pursuant to the tax imposed by
21 this Law.
22 In case credit is extended, the amount thereof shall be
23 included only as and when payments are made.
24 "Purchase price" shall not include consideration received
25 from business enterprises certified under Section 9-222.1 or
26 9-222.1A of the Public Utilities Act, as amended, to the
27 extent of such exemption and during the period of time
28 specified by the Department of Commerce and Community
29 Affairs.
30 (e) "Purchaser" means any person who acquires
31 electricity for use or consumption and not for resale, for a
32 valuable consideration.
33 (f) "Non-residential electric use" means any use or
34 consumption of electricity which is not residential electric
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1 use.
2 (g) "Residential electric use" means electricity used or
3 consumed at a dwelling of 2 or fewer units, or electricity
4 for household purposes used or consumed at a building with
5 multiple dwelling units where the electricity is registered
6 by a separate meter for each dwelling unit.
7 (h) "Self-assessing purchaser" means a purchaser for
8 non-residential electric use who elects to register with and
9 to pay tax directly to the Department in accordance with
10 Sections 2-10 and 2-11 of this Law.
11 (i) "Delivering supplier" means any person engaged in
12 the business of delivering electricity to persons for use or
13 consumption and not for resale and who, in any case where
14 more than one person participates in the delivery of
15 electricity to a specific purchaser, is the last of the
16 suppliers engaged in delivering the electricity prior to its
17 receipt by the purchaser.
18 (j) "Delivering supplier maintaining a place of business
19 in this State", or any like term, means any delivering
20 supplier having or maintaining within this State, directly or
21 by a subsidiary, an office, generation facility, transmission
22 facility, distribution facility, sales office or other place
23 of business, or any employee, agent or other representative
24 operating within this State under the authority of such
25 delivering supplier or such delivering supplier's subsidiary,
26 irrespective of whether such place of business or agent or
27 other representative is located in this State permanently or
28 temporarily, or whether such delivering supplier or such
29 delivering supplier's subsidiary is licensed to do business
30 in this State.
31 (k) "Use" means the exercise by any person of any right
32 or power over electricity incident to the ownership of that
33 electricity, except that it does not include the generation,
34 production, transmission, distribution, delivery or sale of
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1 electricity in the regular course of business or the use of
2 electricity for such purposes.
3 (Source: P.A. 90-561, eff. 8-1-98.)
4 (35 ILCS 640/2-4)
5 Sec. 2-4. Tax imposed.
6 (a) Except as provided in subsection (b), a tax is
7 imposed on the privilege of using in this State electricity
8 purchased for use or consumption and not for resale, other
9 than by municipal corporations owning and operating a local
10 transportation system for public service, at the following
11 rates per kilowatt-hour delivered to the purchaser:
12 (i) For the first 2000 kilowatt-hours used or
13 consumed in a month: 0.330 cents per kilowatt-hour;
14 (ii) For the next 48,000 kilowatt-hours used or
15 consumed in a month: 0.319 cents per kilowatt-hour;
16 (iii) For the next 50,000 kilowatt-hours used or
17 consumed in a month: 0.303 cents per kilowatt-hour;
18 (iv) For the next 400,000 kilowatt-hours used or
19 consumed in a month: 0.297 cents per kilowatt-hour;
20 (v) For the next 500,000 kilowatt-hours used or
21 consumed in a month: 0.286 cents per kilowatt-hour;
22 (vi) For the next 2,000,000 kilowatt-hours used or
23 consumed in a month: 0.270 cents per kilowatt-hour;
24 (vii) For the next 2,000,000 kilowatt-hours used or
25 consumed in a month: 0.254 cents per kilowatt-hour;
26 (viii) For the next 5,000,000 kilowatt-hours used
27 or consumed in a month: 0.233 cents per kilowatt-hour;
28 (ix) For the next 10,000,000 kilowatt-hours used or
29 consumed in a month: 0.207 cents per kilowatt-hour;
30 (x) For all electricity in excess of 20,000,000
31 kilowatt-hours used or consumed in a month: 0.202 cents
32 per kilowatt-hour.
33 Provided, that in lieu of the foregoing rates, the tax is
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1 imposed on a self-assessing purchaser at the rate of 5.1% of
2 the self-assessing purchaser's purchase price for all
3 electricity distributed, supplied, furnished, sold,
4 transmitted and delivered to the self-assessing purchaser in
5 a month.
6 (b) A tax is imposed on the privilege of using in this
7 State electricity purchased from a municipal system or
8 electric cooperative, as defined in Article XVII of the
9 Public Utilities Act, which has not made an election as
10 permitted by either Section 17-200 or Section 17-300 of such
11 Act, at the lesser of 0.32 cents per kilowatt hour of all
12 electricity distributed, supplied, furnished, sold,
13 transmitted, and delivered by such municipal system or
14 electric cooperative to the purchaser or 5% of each such
15 purchaser's purchase price for all electricity distributed,
16 supplied, furnished, sold, transmitted, and delivered by such
17 municipal system or electric cooperative to the purchaser,
18 whichever is the lower rate as applied to each purchaser in
19 each billing period.
20 (c) The tax imposed by this Section 2-4 is not imposed
21 with respect to any use of electricity by business
22 enterprises certified under Section 9-222.1 or 9-222.1A of
23 the Public Utilities Act, as amended, to the extent of such
24 exemption and during the time specified by the Department of
25 Commerce and Community Affairs; or with respect to any
26 transaction in interstate commerce, or otherwise, to the
27 extent to which such transaction may not, under the
28 Constitution and statutes of the United States, be made the
29 subject of taxation by this State.
30 (Source: P.A. 90-561, eff. 8-1-98.)
31 Section 15. The Public Utilities Act is amended by
32 changing Section 9-222 and adding Section 9-222.1A as
33 follows:
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1 (220 ILCS 5/9-222) (from Ch. 111 2/3, par. 9-222)
2 Sec. 9-222. Whenever a tax is imposed upon a public
3 utility engaged in the business of distributing, supplying,
4 furnishing, or selling gas for use or consumption pursuant to
5 Section 2 of the Gas Revenue Tax Act, or whenever a tax is
6 required to be collected by a delivering supplier pursuant to
7 Section 2-7 of the Electricity Excise Tax Act imposed upon a
8 public utility in the business of distributing, supplying,
9 furnishing or selling electricity for use or consumption
10 pursuant to Section 2 of The Public Utilities Revenue Act, or
11 whenever a tax is imposed upon a public utility pursuant to
12 Section 2-202 of this Act, such utility may charge its
13 customers, other than customers who are high impact
14 businesses under Section 5.5 of the Illinois Enterprise Zone
15 Act, or certified business enterprises under Section 9-222.1
16 of this Act, to the extent of such exemption and during the
17 period in which such exemption is in effect, in addition to
18 any rate authorized by this Act, an additional charge equal
19 to the total amount of such taxes. The exemption of this
20 Section relating to high impact businesses shall be subject
21 to the provisions of subsections (a) and (b) of Section 5.5
22 of the Illinois Enterprise Zone Act. This requirement shall
23 not apply to taxes on invested capital imposed pursuant to
24 the Messages Tax Act, the Gas Revenue Tax Act and the Public
25 Utilities Revenue Act. Such utility shall file with the
26 Commission a supplemental schedule which shall specify such
27 additional charge and which shall become effective upon
28 filing without further notice. Such additional charge shall
29 be shown separately on the utility bill to each customer.
30 The Commission shall have the power to investigate whether or
31 not such supplemental schedule correctly specifies such
32 additional charge, but shall have no power to suspend such
33 supplemental schedule. If the Commission finds, after a
34 hearing, that such supplemental schedule does not correctly
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1 specify such additional charge, it shall by order require a
2 refund to the appropriate customers of the excess, if any,
3 with interest, in such manner as it shall deem just and
4 reasonable, and in and by such order shall require the
5 utility to file an amended supplemental schedule
6 corresponding to the finding and order of the Commission.
7 Except with respect to taxes imposed on invested capital,
8 such tax liabilities shall be recovered from customers solely
9 by means of the additional charges authorized by this
10 Section.
11 (Source: P.A. 85-1182.)
12 (220 ILCS 5/9-222.1A new)
13 Sec. 9-222.1A. High impact business. Beginning on August
14 1, 1998 and thereafter, a business enterprise that is
15 certified as a High Impact Business by the Department of
16 Commerce and Community Affairs is exempt from the tax
17 imposed by Section 2-4 of the Electricity Excise Tax Law, if
18 the High Impact Business is registered to self-assess that
19 tax, and is exempt from any additional charges added to the
20 business enterprise's utility bills as a pass-on of State
21 utility taxes under Section 9-222 of this Act, to the extent
22 the tax or charges are exempted by the percentage specified
23 by the Department of Commerce and Community Affairs for
24 State utility taxes, provided the business enterprise meets
25 the following criteria:
26 (1) it intends either (i) to make a minimum
27 eligible investment of $12,000,000 that will be placed in
28 service in qualified property in Illinois and is intended
29 to create at least 500 full-time equivalent jobs at a
30 designated location in Illinois; or (ii) to make a
31 minimum eligible investment of $30,000,000 that will be
32 placed in service in qualified property in Illinois and
33 is intended to retain at least 1,500 full-time equivalent
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1 jobs at a designated location in Illinois;
2 (2) it is designated as a High Impact Business by
3 the Department of Commerce and Community Affairs; and
4 (3) it is certified by the Department of Commerce
5 and Community Affairs as complying with the requirements
6 specified in clauses (1) and (2) of this Section.
7 The Department of Commerce and Community Affairs shall
8 determine the period during which the exemption from the
9 Electricity Excise Tax Law and the charges imposed under
10 Section 9-222 are in effect, which shall not exceed 20 years
11 from the date of initial certification, and shall specify the
12 percentage of the exemption from those taxes or additional
13 charges.
14 The Department of Commerce and Community Affairs is
15 authorized to promulgate rules and regulations to carry out
16 the provisions of this Section, including procedures for
17 complying with the requirements specified in clauses (1)
18 and (2) of this Section and procedures for applying for the
19 exemptions authorized under this Section; to define the
20 amounts and types of eligible investments that business
21 enterprises must make in order to receive State utility tax
22 exemptions or exemptions from the additional charges imposed
23 under Section 9-222 and this Section; to approve such utility
24 tax exemptions for business enterprises whose investments are
25 not yet placed in service; and to require that business
26 enterprises granted tax exemptions or exemptions from
27 additional charges under Section 9-222 repay the exempted
28 amount if the business enterprise fails to comply with the
29 terms and conditions of the certification.
30 Upon certification of the business enterprises by the
31 Department of Commerce and Community Affairs, the Department
32 of Commerce and Community Affairs shall notify the Department
33 of Revenue of the certification. The Department of Revenue
34 shall notify the public utilities of the exemption status of
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1 business enterprises from the tax or pass-on charges of State
2 utility taxes. The exemption status shall take effect within
3 3 months after certification of the business enterprise.
4 Section 99. Effective date. This Act takes effect upon
5 becoming law.
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