Illinois Department of Revenue
 
 
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Electricity Distribution & Invested Capital Taxes

 
 
electric power lines

Statutory References

Electronic Services

Definitions

Electricity Distribution Tax is imposed on persons who:
  • distribute, supply, furnish, or sell electricity for use or consumption (not for resale); and
  • are not electric cooperatives, school districts, or units of local government.

Invested Capital Taxes are imposed on:
  • persons engaged in the business of distributing, supplying, furnishing or selling electricity who are electric cooperatives and who are subject to the Public Utilities Revenue Tax;
  • persons engaged in the business of distributing, supplying, furnishing, or selling natural gas who are subject to the Gas Tax; and
  • water companies subject to taxes imposed by the Illinois Income Tax Act.

Note: Municipalities are excluded from the Invested Capital Taxes.

Tax Rates

Electricity Distribution Tax - Use the “Tax Rate Database” to determine the monthly rate, which is based on the kilowatt-hours (kwhs).

Invested Capital Tax - Use the “Tax Rate Database” to determine tax rate for invested capital.

Allowable Deductions

  • Electricity Distribution Tax - None
  • Invested Capital Tax - Investments in, and advances to, all corporations.

Form/Filing & Payment Requirements

Return Form ICT-4, Electricity Distribution and Invested Capital Tax Return, is due March 15 following the end of the reporting year.

Estimated Payments Payments are due on March 15, June 15, September 15, and December 15. Taxpayers who mail their estimated payments to the department must complete Form ICT-1, Electricity Distribution and Invested Capital Tax Estimated Payment. Do not send Form ICT-1, if you remit your payment by EFT.

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

Questions?

  • Call us at: 1 217 782-6045
  • Mail Form ICT-4 to:
    ATTN: INVESTED CAPITAL TAX
    ILLINOIS DEPARTMENT OF REVENUE
    PO BOX 19019
    SPRINGFIELD IL 62794-9019
 
 
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