Section 510.185  Interdepartmental Transfers

a)         The distribution of electricity between the various departments of a taxpayer does not result in any liability for tax under the Act, notwithstanding that one department of the taxpayer receiving such electricity is, for accounting purposes, charged with the value of the electricity by another department of the same taxpayer distributing the electricity.

b)         However, where electricity is distributed to a separate corporation or legal entity for use or consumption and not for resale, the taxpayer distributing the electricity is liable for tax.

c)         It is immaterial that electricity so distributed by a taxpayer is distributed to the taxpayer's wholly-owned subsidiary, or that the two corporations may be wholly or partially under a common ownership or management.  The Department will not disregard separate corporate entities in applying the Act.

(Source:  Amended at 47 Ill. Reg. 18748, effective November 28, 2023)