Electricity Excise Tax

Statutory Reference

35 ILCS 640/2-1 to 640/99

Electronic Services

MyTax Illinois

Definition

The tax is imposed on persons distributing, supplying, furnishing, or selling electricity in Illinois for use and consumption (not for resale).

Allowable Deductions

The following sales of electricity are exempt from tax:

Sales for resale
Sales in interstate commerce
Sales to businesses certified by the Illinois Department of Commerce and Economic Opportunity and located in an enterprise zone
Sales to businesses certified by the Illinois Department of Commerce and Economic Opportunity as a High
Impact Business;
Sales to the federal government; and
Sales to municipal corporations owning and operating a local transportation system for public service in Illinois
Public utilities are also allowed a tax credit when they are required to purchase electricity produced from methane gas that is generated from landfills.

Additional registration and license fee requirements

Self-assessing purchasers must pay a $200 fee every 2 years.

Tax Rate

Each month, municipal systems and electric cooperatives collect tax from each purchaser an amount equal to the lesser of 5 percent of gross receipts or $.0032 per kilowatt-hour (kwh) per customer. Use the “Tax Rate Database” to determine what delivering suppliers collect from each purchaser monthly.

Self-assessing purchasers pay 5.1 percent of the purchase price for all electricity distributed, supplied, furnished, sold, transmitted, or delivered to them in a month.

Local taxes

Municipalities may impose a tax on the business of distributing, supplying, furnishing, selling, transmitting, or delivering electricity for use or consumption (and not for resale) within the corporate limits of the municipality. The Department of Revenue does not collect these locally imposed taxes.

License Requirements

REG-1, Business Registration Application, is the form a qualified business must use to apply for a license. You may also register using our on-line Business Registration program.

Form/Filing & Payment Requirements

Return

Form RPU-13, Electricity Excise Tax Return, which can be filed electronically, is filed monthly, quarterly, or annually, based on the taxpayer’s average monthly liability. The department determines how often a return must be filed.
A monthly return is due on or before the 15th day of the month following the month for which the return is filed.
A quarterly return is due on or before the last day of the month following the quarter for which the return is filed.
An annual return is due on or before January 31 of the year following the year for which the return is filed.

Returns may be filed electronically. For more information see MyTax Illinois.

Quarter-monthly payments

Companies other than municipalities that have an average monthly liability of $10,000 or more must make quarter-monthly payments. Payments are due on the 7th, 15th, 22nd, and the last day of the month. Payments can be made using MyTax Illinois. Taxpayers who mail their quarter-monthly payments to the department must complete Form RPU-50, Public Utilities Quarter-Monthly Payment - Electricity Excise Tax. Do not send Form RPU-50 if you remit your payment electronically.

Note: Electronic funds transfer participants should not send Form RPU-50 to the department.

A taxpayer with an annual liability of $20,000 or more in the preceding calendar year must remit any tax payment electronically by Electronic Funds Transfer (EFT).

Questions?

Call us at: 1 217 782-6045
Mail Form RPU-13 to:
ELECTRICITY EXCISE TAX
ILLINOIS DEPARTMENT OF REVENUE
PO BOX 19019
SPRINGFIELD IL 62794-9019