Bill Text: IL HB0380 | 2013-2014 | 98th General Assembly | Amended

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Bill Title: Amends the Motor Fuel Tax Law. Makes a technical change in a Section concerning definitions.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Failed) 2014-12-03 - Session Sine Die [HB0380 Detail]

Download: Illinois-2013-HB0380-Amended.html

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Rep. John E. Bradley

Filed: 9/27/2013

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AMENDMENT TO HOUSE BILL 380
AMENDMENT NO. ______. Amend House Bill 380 by replacing
everything after the enacting clause with the following:
"Section 5. The Economic Development for a Growing Economy
Tax Credit Act is amended by changing Section 5-15 as follows:
(35 ILCS 10/5-15)
Sec. 5-15. Tax Credit Awards. Subject to the conditions set
forth in this Act, a Taxpayer is entitled to a Credit against
or, as described in subsection (g) of this Section, a payment
towards taxes imposed pursuant to subsections (a) and (b) of
Section 201 of the Illinois Income Tax Act that may be imposed
on the Taxpayer for a taxable year beginning on or after
January 1, 1999, if the Taxpayer is awarded a Credit by the
Department under this Act for that taxable year.
(a) The Department shall make Credit awards under this Act
to foster job creation and retention in Illinois.

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(b) A person that proposes a project to create new jobs in
Illinois must enter into an Agreement with the Department for
the Credit under this Act.
(c) The Credit shall be claimed for the taxable years
specified in the Agreement.
(d) The Credit shall not exceed the Incremental Income Tax
attributable to the project that is the subject of the
Agreement.
(e) Nothing herein shall prohibit a Tax Credit Award to an
Applicant that uses a PEO if all other award criteria are
satisfied.
(f) In lieu of the Credit allowed under this Act against
the taxes imposed pursuant to subsections (a) and (b) of
Section 201 of the Illinois Income Tax Act for any taxable year
ending on or after December 31, 2009, the Taxpayer may elect to
claim the Credit against its obligation to pay over withholding
under Section 704A of the Illinois Income Tax Act.
(1) The election under this subsection (f) may be made
only by a Taxpayer that (i) is primarily engaged in one of
the following business activities: water purification and
treatment, motor vehicle metal stamping, automobile
manufacturing, automobile and light duty motor vehicle
manufacturing, motor vehicle manufacturing, light truck
and utility vehicle manufacturing, heavy duty truck
manufacturing, motor vehicle body manufacturing, cable
television infrastructure design or manufacturing, or

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wireless telecommunication or computing terminal device
design or manufacturing for use on public networks and (ii)
meets the following criteria:
(A) the Taxpayer (i) had an Illinois net loss or an
Illinois net loss deduction under Section 207 of the
Illinois Income Tax Act for the taxable year in which
the Credit is awarded, (ii) employed a minimum of 1,000
full-time employees in this State during the taxable
year in which the Credit is awarded, (iii) has an
Agreement under this Act on December 14, 2009 (the
effective date of Public Act 96-834), and (iv) is in
compliance with all provisions of that Agreement;
(B) the Taxpayer (i) had an Illinois net loss or an
Illinois net loss deduction under Section 207 of the
Illinois Income Tax Act for the taxable year in which
the Credit is awarded, (ii) employed a minimum of 1,000
full-time employees in this State during the taxable
year in which the Credit is awarded, and (iii) has
applied for an Agreement within 365 days after December
14, 2009 (the effective date of Public Act 96-834);
(C) the Taxpayer (i) had an Illinois net operating
loss carryforward under Section 207 of the Illinois
Income Tax Act in a taxable year ending during calendar
year 2008, (ii) has applied for an Agreement within 150
days after the effective date of this amendatory Act of
the 96th General Assembly, (iii) creates at least 400

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new jobs in Illinois, (iv) retains at least 2,000 jobs
in Illinois that would have been at risk of relocation
out of Illinois over a 10-year period, and (v) makes a
capital investment of at least $75,000,000;
(D) the Taxpayer (i) had an Illinois net operating
loss carryforward under Section 207 of the Illinois
Income Tax Act in a taxable year ending during calendar
year 2009, (ii) has applied for an Agreement within 150
days after the effective date of this amendatory Act of
the 96th General Assembly, (iii) creates at least 150
new jobs, (iv) retains at least 1,000 jobs in Illinois
that would have been at risk of relocation out of
Illinois over a 10-year period, and (v) makes a capital
investment of at least $57,000,000; or
(E) the Taxpayer (i) employed at least 2,500
full-time employees in the State during the year in
which the Credit is awarded, (ii) commits to make at
least $500,000,000 in combined capital improvements
and project costs under the Agreement, (iii) applies
for an Agreement between January 1, 2011 and June 30,
2011, (iv) executes an Agreement for the Credit during
calendar year 2011, and (v) was incorporated no more
than 5 years before the filing of an application for an
Agreement.
(1.5) The election under this subsection (f) may also
be made by a Taxpayer for any Credit awarded pursuant to an

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agreement that was executed between January 1, 2011 and
June 30, 2011, if the Taxpayer (i) is primarily engaged in
the manufacture of inner tubes or tires, or both, from
natural and synthetic rubber, (ii) employs a minimum of
2,400 full-time employees in Illinois at the time of
application, (iii) creates at least 350 full-time jobs and
retains at least 250 full-time jobs in Illinois that would
have been at risk of being created or retained outside of
Illinois, and (iv) makes a capital investment of at least
$200,000,000 at the project location.
(1.6) The election under this subsection (f) may also
be made by a Taxpayer for any Credit awarded pursuant to an
agreement that was executed within 150 days after the
effective date of this amendatory Act of the 97th General
Assembly, if the Taxpayer (i) is primarily engaged in the
operation of a discount department store, (ii) maintains
its corporate headquarters in Illinois, (iii) employs a
minimum of 4,250 full-time employees at its corporate
headquarters in Illinois at the time of application, (iv)
retains at least 4,250 full-time jobs in Illinois that
would have been at risk of being relocated outside of
Illinois, (v) had a minimum of $40,000,000,000 in total
revenue in 2010, and (vi) makes a capital investment of at
least $300,000,000 at the project location.
(1.7) Notwithstanding any other provision of law, the
election under this subsection (f) may also be made by a

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Taxpayer for any Credit awarded pursuant to an agreement
that was executed or applied for on or after July 1, 2011
and on or before March 31, 2012, if the Taxpayer is
primarily engaged in the manufacture of original and
aftermarket filtration parts and products for automobiles,
motor vehicles, light duty motor vehicles, light trucks and
utility vehicles, and heavy duty trucks, (ii) employs a
minimum of 1,000 full-time employees in Illinois at the
time of application, (iii) creates at least 250 full-time
jobs in Illinois, (iv) relocates its corporate
headquarters to Illinois from another state, and (v) makes
a capital investment of at least $4,000,000 at the project
location.
(1.8) Notwithstanding any other provision of law, the
election under this subsection (f) may also be made by a
Taxpayer for any Credit awarded pursuant to an agreement
that was executed within 150 days after the effective date
of this amendatory Act of the 98th General Assembly if the
Taxpayer:
(A) is primarily engaged in agricultural
processing;
(B) maintains its corporate headquarters in
Illinois;
(C) employs a minimum of 200 full-time employees,
including (i) the creation of at least 100 full-time
equivalent jobs and (ii) the retention of at least 100

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full-time jobs in Illinois that would have been at risk
of being relocated outside of Illinois;
(D) exported at least $1,000,000,000 from Illinois
in 2012; and
(E) incurs at least $20,000,000 in a combination of
capital and relocation expenses within Illinois.
(2) An election under this subsection shall allow the
credit to be taken against payments otherwise due under
Section 704A of the Illinois Income Tax Act during the
first calendar year beginning after the end of the taxable
year in which the credit is awarded under this Act.
(3) The election shall be made in the form and manner
required by the Illinois Department of Revenue and, once
made, shall be irrevocable.
(4) If a Taxpayer who meets the requirements of
subparagraph (A) of paragraph (1) of this subsection (f)
elects to claim the Credit against its withholdings as
provided in this subsection (f), then, on and after the
date of the election, the terms of the Agreement between
the Taxpayer and the Department may not be further amended
during the term of the Agreement.
(g) A pass-through entity that has been awarded a credit
under this Act, its shareholders, or its partners may treat
some or all of the credit awarded pursuant to this Act as a tax
payment for purposes of the Illinois Income Tax Act. The term
"tax payment" means a payment as described in Article 6 or

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Article 8 of the Illinois Income Tax Act or a composite payment
made by a pass-through entity on behalf of any of its
shareholders or partners to satisfy such shareholders' or
partners' taxes imposed pursuant to subsections (a) and (b) of
Section 201 of the Illinois Income Tax Act. In no event shall
the amount of the award credited pursuant to this Act exceed
the Illinois income tax liability of the pass-through entity or
its shareholders or partners for the taxable year.
(Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09;
96-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff.
3-4-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12.)
Section 10. The Gas Revenue Tax Act is amended by changing
Section 1 as follows:
(35 ILCS 615/1) (from Ch. 120, par. 467.16)
Sec. 1. For the purposes of this Act: "Gross receipts"
means the consideration received for gas distributed,
supplied, furnished or sold to persons for use or consumption
and not for resale, and for all services (including the
transportation or storage of gas for an end-user) rendered in
connection therewith, and shall include cash, services and
property of every kind or nature, and shall be determined
without any deduction on account of the cost of the service,
product or commodity supplied, the cost of materials used,
labor or service costs, or any other expense whatsoever.

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However, "gross receipts" shall not include receipts from:
(i) any minimum or other charge for gas or gas service
where the customer has taken no therms of gas;
(ii) any charge for a dishonored check;
(iii) any finance or credit charge, penalty or charge
for delayed payment, or discount for prompt payment;
(iv) any charge for reconnection of service or for
replacement or relocation of facilities;
(v) any advance or contribution in aid of construction;
(vi) repair, inspection or servicing of equipment
located on customer premises;
(vii) leasing or rental of equipment, the leasing or
rental of which is not necessary to distributing,
furnishing, supplying, selling, transporting or storing
gas;
(viii) any sale to a customer if the taxpayer is
prohibited by federal or State constitution, treaty,
convention, statute or court decision from recovering the
related tax liability from such customer;
(ix) any charges added to customers' bills pursuant to
the provisions of Section 9-221 or Section 9-222 of the
Public Utilities Act, as amended, or any charges added to
customers' bills by taxpayers who are not subject to rate
regulation by the Illinois Commerce Commission for the
purpose of recovering any of the tax liabilities or other
amounts specified in such provisions of such Act; and

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(x) prior to October 1, 2003, any charge for gas or gas
services to a customer who acquired contractual rights for
the direct purchase of gas or gas services originating from
an out-of-state supplier or source on or before March 1,
1995, except for those charges solely related to the local
distribution of gas by a public utility. This exemption
includes any charge for gas or gas service, except for
those charges solely related to the local distribution of
gas by a public utility, to a customer who maintained an
account with a public utility (as defined in Section 3-105
of the Public Utilities Act) for the transportation of
customer-owned gas on or before March 1, 1995. The
provisions of this amendatory Act of 1997 are intended to
clarify, rather than change, existing law as to the meaning
and scope of this exemption. This exemption (x) expires on
September 30, 2003.
In case credit is extended, the amount thereof shall be
included only as and when payments are received.
"Gross receipts" shall not include consideration received
from business enterprises certified under Section 9-222.1 of
the Public Utilities Act, as amended, to the extent of such
exemption and during the period of time specified by the
Department of Commerce and Economic Opportunity.
"Gross receipts" shall not include 10% of the
consideration received from business enterprises certified
under Section 9-222.1B of the Public Utilities Act, as amended,

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during the period of time specified by the Department of
Commerce and Economic Opportunity in the certification.
"Department" means the Department of Revenue of the State
of Illinois.
"Director" means the Director of Revenue for the Department
of Revenue of the State of Illinois.
"Taxpayer" means a person engaged in the business of
distributing, supplying, furnishing or selling gas for use or
consumption and not for resale.
"Person" means any natural individual, firm, trust,
estate, partnership, association, joint stock company, joint
adventure, corporation, limited liability company, or a
receiver, trustee, guardian or other representative appointed
by order of any court, or any city, town, county or other
political subdivision of this State.
"Invested capital" means that amount equal to (i) the
average of the balances at the beginning and end of each
taxable period of the taxpayer's total stockholder's equity and
total long-term debt, less investments in and advances to all
corporations, as set forth on the balance sheets included in
the taxpayer's annual report to the Illinois Commerce
Commission for the taxable period; (ii) multiplied by a
fraction determined under Sections 301 and 304(a) of the
"Illinois Income Tax Act" and reported on the Illinois income
tax return for the taxable period ending in or with the taxable
period in question. However, notwithstanding the income tax

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return reporting requirement stated above, beginning July 1,
1979, no taxpayer's denominators used to compute the sales,
property or payroll factors under subsection (a) of Section 304
of the Illinois Income Tax Act shall include payroll, property
or sales of any corporate entity other than the taxpayer for
the purposes of determining an allocation for the invested
capital tax. This amendatory Act of 1982, Public Act 82-1024,
is not intended to and does not make any change in the meaning
of any provision of this Act, it having been the intent of the
General Assembly in initially enacting the definition of
"invested capital" to provide for apportionment of the invested
capital of each company, based solely upon the sales, property
and payroll of that company.
"Taxable period" means each period which ends after the
effective date of this Act and which is covered by an annual
report filed by the taxpayer with the Illinois Commerce
Commission.
(Source: P.A. 93-31, eff. 10-1-03; 94-793, eff. 5-19-06.)
Section 15. The Electricity Excise Tax Law is amended by
changing Sections 2-3 and 2-4 as follows:
(35 ILCS 640/2-3)
Sec. 2-3. Definitions. As used in this Law, unless the
context clearly requires otherwise:
(a) "Department" means the Department of Revenue of the

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State of Illinois.
(b) "Director" means the Director of the Department of
Revenue of the State of Illinois.
(c) "Person" means any natural individual, firm, trust,
estate, partnership, association, joint stock company, joint
venture, corporation, limited liability company, or a
receiver, trustee, guardian, or other representative appointed
by order of any court, or any city, town, village, county, or
other political subdivision of this State.
(d) "Purchase price" means the consideration paid for the
distribution, supply, furnishing, sale, transmission or
delivery of electricity to a person for non-residential use or
consumption (and for both residential and non-residential use
or consumption in the case of electricity purchased from a
municipal system or electric cooperative described in
subsection (b) of Section 2-4) and not for resale, and for all
services directly related to the production, transmission or
distribution of electricity distributed, supplied, furnished,
sold, transmitted or delivered for non-residential use or
consumption, and includes transition charges imposed in
accordance with Article XVI of the Public Utilities Act and
instrument funding charges imposed in accordance with Article
XVIII of the Public Utilities Act, as well as cash, services
and property of every kind or nature, and shall be determined
without any deduction on account of the cost of the service,
product or commodity supplied, the cost of materials used,

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labor or service costs, or any other expense whatsoever.
However, "purchase price" shall not include consideration paid
for:
(i) any charge for a dishonored check;
(ii) any finance or credit charge, penalty or charge
for delayed payment, or discount for prompt payment;
(iii) any charge for reconnection of service or for
replacement or relocation of facilities;
(iv) any advance or contribution in aid of
construction;
(v) repair, inspection or servicing of equipment
located on customer premises;
(vi) leasing or rental of equipment, the leasing or
rental of which is not necessary to furnishing, supplying
or selling electricity;
(vii) any purchase by a purchaser if the supplier is
prohibited by federal or State constitution, treaty,
convention, statute or court decision from recovering the
related tax liability from such purchaser; and
(viii) any amounts added to purchasers' bills because
of charges made pursuant to the tax imposed by this Law.
In case credit is extended, the amount thereof shall be
included only as and when payments are made.
"Purchase price" shall not include consideration received
from business enterprises certified under Section 9-222.1 or
9-222.1A of the Public Utilities Act, as amended, to the extent

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of such exemption and during the period of time specified by
the Department of Commerce and Economic Opportunity.
"Purchase price" shall not include 10% of the
consideration received from business enterprises certified
under Section 9-222.1B of the Public Utilities Act, as amended,
during the period of time specified by the Department of
Commerce and Economic Opportunity in the certification.
(e) "Purchaser" means any person who acquires electricity
for use or consumption and not for resale, for a valuable
consideration.
(f) "Non-residential electric use" means any use or
consumption of electricity which is not residential electric
use.
(g) "Residential electric use" means electricity used or
consumed at a dwelling of 2 or fewer units, or electricity for
household purposes used or consumed at a building with multiple
dwelling units where the electricity is registered by a
separate meter for each dwelling unit.
(h) "Self-assessing purchaser" means a purchaser for
non-residential electric use who elects to register with and to
pay tax directly to the Department in accordance with Sections
2-10 and 2-11 of this Law.
(i) "Delivering supplier" means any person engaged in the
business of delivering electricity to persons for use or
consumption and not for resale, but not an entity engaged in
the practice of resale and redistribution of electricity within

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a building prior to January 2, 1957, and who, in any case where
more than one person participates in the delivery of
electricity to a specific purchaser, is the last of the
suppliers engaged in delivering the electricity prior to its
receipt by the purchaser.
(j) "Delivering supplier maintaining a place of business in
this State", or any like term, means any delivering supplier
having or maintaining within this State, directly or by a
subsidiary, an office, generation facility, transmission
facility, distribution facility, sales office or other place of
business, or any employee, agent or other representative
operating within this State under the authority of such
delivering supplier or such delivering supplier's subsidiary,
irrespective of whether such place of business or agent or
other representative is located in this State permanently or
temporarily, or whether such delivering supplier or such
delivering supplier's subsidiary is licensed to do business in
this State.
(k) "Use" means the exercise by any person of any right or
power over electricity incident to the ownership of that
electricity, except that it does not include the generation,
production, transmission, distribution, delivery or sale of
electricity in the regular course of business or the use of
electricity for such purposes.
(Source: P.A. 94-793, eff. 5-19-06.)

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(35 ILCS 640/2-4)
Sec. 2-4. Tax imposed.
(a) Except as provided in subsection (b), a tax is imposed
on the privilege of using in this State electricity purchased
for use or consumption and not for resale, other than by
municipal corporations owning and operating a local
transportation system for public service, at the following
rates per kilowatt-hour delivered to the purchaser:
(i) For the first 2000 kilowatt-hours used or consumed
in a month: 0.330 cents per kilowatt-hour;
(ii) For the next 48,000 kilowatt-hours used or
consumed in a month: 0.319 cents per kilowatt-hour;
(iii) For the next 50,000 kilowatt-hours used or
consumed in a month: 0.303 cents per kilowatt-hour;
(iv) For the next 400,000 kilowatt-hours used or
consumed in a month: 0.297 cents per kilowatt-hour;
(v) For the next 500,000 kilowatt-hours used or
consumed in a month: 0.286 cents per kilowatt-hour;
(vi) For the next 2,000,000 kilowatt-hours used or
consumed in a month: 0.270 cents per kilowatt-hour;
(vii) For the next 2,000,000 kilowatt-hours used or
consumed in a month: 0.254 cents per kilowatt-hour;
(viii) For the next 5,000,000 kilowatt-hours used or
consumed in a month: 0.233 cents per kilowatt-hour;
(ix) For the next 10,000,000 kilowatt-hours used or
consumed in a month: 0.207 cents per kilowatt-hour;

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(x) For all electricity in excess of 20,000,000
kilowatt-hours used or consumed in a month: 0.202 cents per
kilowatt-hour.
Provided, that in lieu of the foregoing rates, the tax is
imposed on a self-assessing purchaser at the rate of 5.1% of
the self-assessing purchaser's purchase price for all
electricity distributed, supplied, furnished, sold,
transmitted and delivered to the self-assessing purchaser in a
month.
(b) A tax is imposed on the privilege of using in this
State electricity purchased from a municipal system or electric
cooperative, as defined in Article XVII of the Public Utilities
Act, which has not made an election as permitted by either
Section 17-200 or Section 17-300 of such Act, at the lesser of
0.32 cents per kilowatt hour of all electricity distributed,
supplied, furnished, sold, transmitted, and delivered by such
municipal system or electric cooperative to the purchaser or 5%
of each such purchaser's purchase price for all electricity
distributed, supplied, furnished, sold, transmitted, and
delivered by such municipal system or electric cooperative to
the purchaser, whichever is the lower rate as applied to each
purchaser in each billing period.
(c) The tax imposed by this Section 2-4 is not imposed with
respect to any use of electricity by business enterprises
certified under Section 9-222.1, or 9-222.1A, or 9-222.1B of
the Public Utilities Act, as amended, to the extent of such

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exemption and during the time specified by the Department of
Commerce and Economic Opportunity; or with respect to any
transaction in interstate commerce, or otherwise, to the extent
to which such transaction may not, under the Constitution and
statutes of the United States, be made the subject of taxation
by this State.
(Source: P.A. 94-793, eff. 5-19-06.)
Section 20. The Illinois Municipal Code is amended by
changing Section 8-11-2 as follows:
(65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2)
Sec. 8-11-2. The corporate authorities of any municipality
may tax any or all of the following occupations or privileges:
1. (Blank).
2. Persons engaged in the business of distributing,
supplying, furnishing, or selling gas for use or
consumption within the corporate limits of a municipality
of 500,000 or fewer population, and not for resale, at a
rate not to exceed 5% of the gross receipts therefrom.
2a. Persons engaged in the business of distributing,
supplying, furnishing, or selling gas for use or
consumption within the corporate limits of a municipality
of over 500,000 population, and not for resale, at a rate
not to exceed 8% of the gross receipts therefrom. If
imposed, this tax shall be paid in monthly payments.

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3. The privilege of using or consuming electricity
acquired in a purchase at retail and used or consumed
within the corporate limits of the municipality at rates
not to exceed the following maximum rates, calculated on a
monthly basis for each purchaser:
(i) For the first 2,000 kilowatt-hours used or
consumed in a month; 0.61 cents per kilowatt-hour;
(ii) For the next 48,000 kilowatt-hours used or
consumed in a month; 0.40 cents per kilowatt-hour;
(iii) For the next 50,000 kilowatt-hours used or
consumed in a month; 0.36 cents per kilowatt-hour;
(iv) For the next 400,000 kilowatt-hours used or
consumed in a month; 0.35 cents per kilowatt-hour;
(v) For the next 500,000 kilowatt-hours used or
consumed in a month; 0.34 cents per kilowatt-hour;
(vi) For the next 2,000,000 kilowatt-hours used or
consumed in a month; 0.32 cents per kilowatt-hour;
(vii) For the next 2,000,000 kilowatt-hours used
or consumed in a month; 0.315 cents per kilowatt-hour;
(viii) For the next 5,000,000 kilowatt-hours used
or consumed in a month; 0.31 cents per kilowatt-hour;
(ix) For the next 10,000,000 kilowatt-hours used
or consumed in a month; 0.305 cents per kilowatt-hour;
and
(x) For all electricity used or consumed in excess
of 20,000,000 kilowatt-hours in a month, 0.30 cents per

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kilowatt-hour.
If a municipality imposes a tax at rates lower than
either the maximum rates specified in this Section or the
alternative maximum rates promulgated by the Illinois
Commerce Commission, as provided below, the tax rates shall
be imposed upon the kilowatt hour categories set forth
above with the same proportional relationship as that which
exists among such maximum rates. Notwithstanding the
foregoing, until December 31, 2008, no municipality shall
establish rates that are in excess of rates reasonably
calculated to produce revenues that equal the maximum total
revenues such municipality could have received under the
tax authorized by this subparagraph in the last full
calendar year prior to the effective date of Section 65 of
this amendatory Act of 1997; provided that this shall not
be a limitation on the amount of tax revenues actually
collected by such municipality.
Upon the request of the corporate authorities of a
municipality, the Illinois Commerce Commission shall,
within 90 days after receipt of such request, promulgate
alternative rates for each of these kilowatt-hour
categories that will reflect, as closely as reasonably
practical for that municipality, the distribution of the
tax among classes of purchasers as if the tax were based on
a uniform percentage of the purchase price of electricity.
A municipality that has adopted an ordinance imposing a tax

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pursuant to subparagraph 3 as it existed prior to the
effective date of Section 65 of this amendatory Act of 1997
may, rather than imposing the tax permitted by this
amendatory Act of 1997, continue to impose the tax pursuant
to that ordinance with respect to gross receipts received
from residential customers through July 31, 1999, and with
respect to gross receipts from any non-residential
customer until the first bill issued to such customer for
delivery services in accordance with Section 16-104 of the
Public Utilities Act but in no case later than the last
bill issued to such customer before December 31, 2000. No
ordinance imposing the tax permitted by this amendatory Act
of 1997 shall be applicable to any non-residential customer
until the first bill issued to such customer for delivery
services in accordance with Section 16-104 of the Public
Utilities Act but in no case later than the last bill
issued to such non-residential customer before December
31, 2000.
4. Persons engaged in the business of distributing,
supplying, furnishing, or selling water for use or
consumption within the corporate limits of the
municipality, and not for resale, at a rate not to exceed
5% of the gross receipts therefrom.
None of the taxes authorized by this Section may be imposed
with respect to any transaction in interstate commerce or
otherwise to the extent to which the business or privilege may

09800HB0380ham001 - 23 - LRB098 03212 HLH 48662 a
not, under the constitution and statutes of the United States,
be made the subject of taxation by this State or any political
sub-division thereof; nor shall any persons engaged in the
business of distributing, supplying, furnishing, selling or
transmitting gas, water, or electricity, or using or consuming
electricity acquired in a purchase at retail, be subject to
taxation under the provisions of this Section for those
transactions that are or may become subject to taxation under
the provisions of the "Municipal Retailers' Occupation Tax Act"
authorized by Section 8-11-1; nor shall any tax authorized by
this Section be imposed upon any person engaged in a business
or on any privilege unless the tax is imposed in like manner
and at the same rate upon all persons engaged in businesses of
the same class in the municipality, whether privately or
municipally owned or operated, or exercising the same privilege
within the municipality.
Any of the taxes enumerated in this Section may be in
addition to the payment of money, or value of products or
services furnished to the municipality by the taxpayer as
compensation for the use of its streets, alleys, or other
public places, or installation and maintenance therein,
thereon or thereunder of poles, wires, pipes or other equipment
used in the operation of the taxpayer's business.
(a) If the corporate authorities of any home rule
municipality have adopted an ordinance that imposed a tax on
public utility customers, between July 1, 1971, and October 1,

09800HB0380ham001 - 24 - LRB098 03212 HLH 48662 a
1981, on the good faith belief that they were exercising
authority pursuant to Section 6 of Article VII of the 1970
Illinois Constitution, that action of the corporate
authorities shall be declared legal and valid, notwithstanding
a later decision of a judicial tribunal declaring the ordinance
invalid. No municipality shall be required to rebate, refund,
or issue credits for any taxes described in this paragraph, and
those taxes shall be deemed to have been levied and collected
in accordance with the Constitution and laws of this State.
(b) In any case in which (i) prior to October 19, 1979, the
corporate authorities of any municipality have adopted an
ordinance imposing a tax authorized by this Section (or by the
predecessor provision of the "Revised Cities and Villages Act")
and have explicitly or in practice interpreted gross receipts
to include either charges added to customers' bills pursuant to
the provision of paragraph (a) of Section 36 of the Public
Utilities Act or charges added to customers' bills by taxpayers
who are not subject to rate regulation by the Illinois Commerce
Commission for the purpose of recovering any of the tax
liabilities or other amounts specified in such paragraph (a) of
Section 36 of that Act, and (ii) on or after October 19, 1979,
a judicial tribunal has construed gross receipts to exclude all
or part of those charges, then neither those municipality nor
any taxpayer who paid the tax shall be required to rebate,
refund, or issue credits for any tax imposed or charge
collected from customers pursuant to the municipality's

09800HB0380ham001 - 25 - LRB098 03212 HLH 48662 a
interpretation prior to October 19, 1979. This paragraph
reflects a legislative finding that it would be contrary to the
public interest to require a municipality or its taxpayers to
refund taxes or charges attributable to the municipality's more
inclusive interpretation of gross receipts prior to October 19,
1979, and is not intended to prescribe or limit judicial
construction of this Section. The legislative finding set forth
in this subsection does not apply to taxes imposed after the
effective date of this amendatory Act of 1995.
(c) The tax authorized by subparagraph 3 shall be collected
from the purchaser by the person maintaining a place of
business in this State who delivers the electricity to the
purchaser. This tax shall constitute a debt of the purchaser to
the person who delivers the electricity to the purchaser and if
unpaid, is recoverable in the same manner as the original
charge for delivering the electricity. Any tax required to be
collected pursuant to an ordinance authorized by subparagraph 3
and any such tax collected by a person delivering electricity
shall constitute a debt owed to the municipality by such person
delivering the electricity, provided, that the person
delivering electricity shall be allowed credit for such tax
related to deliveries of electricity the charges for which are
written off as uncollectible, and provided further, that if
such charges are thereafter collected, the delivering supplier
shall be obligated to remit such tax. For purposes of this
subsection (c), any partial payment not specifically

09800HB0380ham001 - 26 - LRB098 03212 HLH 48662 a
identified by the purchaser shall be deemed to be for the
delivery of electricity. Persons delivering electricity shall
collect the tax from the purchaser by adding such tax to the
gross charge for delivering the electricity, in the manner
prescribed by the municipality. Persons delivering electricity
shall also be authorized to add to such gross charge an amount
equal to 3% of the tax to reimburse the person delivering
electricity for the expenses incurred in keeping records,
billing customers, preparing and filing returns, remitting the
tax and supplying data to the municipality upon request. If the
person delivering electricity fails to collect the tax from the
purchaser, then the purchaser shall be required to pay the tax
directly to the municipality in the manner prescribed by the
municipality. Persons delivering electricity who file returns
pursuant to this paragraph (c) shall, at the time of filing
such return, pay the municipality the amount of the tax
collected pursuant to subparagraph 3.
(d) For the purpose of the taxes enumerated in this
Section:
"Gross receipts" means the consideration received for
distributing, supplying, furnishing or selling gas for use or
consumption and not for resale, and the consideration received
for distributing, supplying, furnishing or selling water for
use or consumption and not for resale, and for all services
rendered in connection therewith valued in money, whether
received in money or otherwise, including cash, credit,

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services and property of every kind and material and for all
services rendered therewith, and shall be determined without
any deduction on account of the cost of the service, product or
commodity supplied, the cost of materials used, labor or
service cost, or any other expenses whatsoever. "Gross
receipts" shall not include that portion of the consideration
received for distributing, supplying, furnishing, or selling
gas or water to business enterprises described in paragraph (e)
or (e-5) of this Section to the extent and during the period in
which the exemption authorized by paragraph (e) or (e-5) is in
effect or for school districts or units of local government
described in paragraph (f) during the period in which the
exemption authorized in paragraph (f) is in effect.
For utility bills issued on or after May 1, 1996, but
before May 1, 1997, and for receipts from those utility bills,
"gross receipts" does not include one-third of (i) amounts
added to customers' bills under Section 9-222 of the Public
Utilities Act, or (ii) amounts added to customers' bills by
taxpayers who are not subject to rate regulation by the
Illinois Commerce Commission for the purpose of recovering any
of the tax liabilities described in Section 9-222 of the Public
Utilities Act. For utility bills issued on or after May 1,
1997, but before May 1, 1998, and for receipts from those
utility bills, "gross receipts" does not include two-thirds of
(i) amounts added to customers' bills under Section 9-222 of
the Public Utilities Act, or (ii) amount added to customers'

09800HB0380ham001 - 28 - LRB098 03212 HLH 48662 a
bills by taxpayers who are not subject to rate regulation by
the Illinois Commerce Commission for the purpose of recovering
any of the tax liabilities described in Section 9-222 of the
Public Utilities Act. For utility bills issued on or after May
1, 1998, and for receipts from those utility bills, "gross
receipts" does not include (i) amounts added to customers'
bills under Section 9-222 of the Public Utilities Act, or (ii)
amounts added to customers' bills by taxpayers who are not
subject to rate regulation by the Illinois Commerce Commission
for the purpose of recovering any of the tax liabilities
described in Section 9-222 of the Public Utilities Act.
For purposes of this Section "gross receipts" shall not
include amounts added to customers' bills under Section 9-221
of the Public Utilities Act. This paragraph is not intended to
nor does it make any change in the meaning of "gross receipts"
for the purposes of this Section, but is intended to remove
possible ambiguities, thereby confirming the existing meaning
of "gross receipts" prior to the effective date of this
amendatory Act of 1995.
"Person" as used in this Section means any natural
individual, firm, trust, estate, partnership, association,
joint stock company, joint adventure, corporation, limited
liability company, municipal corporation, the State or any of
its political subdivisions, any State university created by
statute, or a receiver, trustee, guardian or other
representative appointed by order of any court.

09800HB0380ham001 - 29 - LRB098 03212 HLH 48662 a
"Person maintaining a place of business in this State"
shall mean any person having or maintaining within this State,
directly or by a subsidiary or other affiliate, an office,
generation facility, distribution facility, transmission
facility, sales office or other place of business, or any
employee, agent, or other representative operating within this
State under the authority of the person or its subsidiary or
other affiliate, irrespective of whether such place of business
or agent or other representative is located in this State
permanently or temporarily, or whether such person, subsidiary
or other affiliate is licensed or qualified to do business in
this State.
"Public utility" shall have the meaning ascribed to it in
Section 3-105 of the Public Utilities Act and shall include
alternative retail electric suppliers as defined in Section
16-102 of that Act.
"Purchase at retail" shall mean any acquisition of
electricity by a purchaser for purposes of use or consumption,
and not for resale, but shall not include the use of
electricity by a public utility directly in the generation,
production, transmission, delivery or sale of electricity.
"Purchaser" shall mean any person who uses or consumes,
within the corporate limits of the municipality, electricity
acquired in a purchase at retail.
(e) Any municipality that imposes taxes upon public
utilities or upon the privilege of using or consuming

09800HB0380ham001 - 30 - LRB098 03212 HLH 48662 a
electricity pursuant to this Section whose territory includes
any part of an enterprise zone or federally designated Foreign
Trade Zone or Sub-Zone may, by a majority vote of its corporate
authorities, exempt from those taxes for a period not exceeding
20 years any specified percentage of gross receipts of public
utilities received from, or electricity used or consumed by,
business enterprises that:
(1) either (i) make investments that cause the creation
of a minimum of 200 full-time equivalent jobs in Illinois,
(ii) make investments of at least $175,000,000 that cause
the creation of a minimum of 150 full-time equivalent jobs
in Illinois, or (iii) make investments that cause the
retention of a minimum of 1,000 full-time jobs in Illinois;
and
(2) are either (i) located in an Enterprise Zone
established pursuant to the Illinois Enterprise Zone Act or
(ii) Department of Commerce and Economic Opportunity
designated High Impact Businesses located in a federally
designated Foreign Trade Zone or Sub-Zone; and
(3) are certified by the Department of Commerce and
Economic Opportunity as complying with the requirements
specified in clauses (1) and (2) of this paragraph (e).
Upon adoption of the ordinance authorizing the exemption,
the municipal clerk shall transmit a copy of that ordinance to
the Department of Commerce and Economic Opportunity. The
Department of Commerce and Economic Opportunity shall

09800HB0380ham001 - 31 - LRB098 03212 HLH 48662 a
determine whether the business enterprises located in the
municipality meet the criteria prescribed in this paragraph. If
the Department of Commerce and Economic Opportunity determines
that the business enterprises meet the criteria, it shall grant
certification. The Department of Commerce and Economic
Opportunity shall act upon certification requests within 30
days after receipt of the ordinance.
Upon certification of the business enterprise by the
Department of Commerce and Economic Opportunity, the
Department of Commerce and Economic Opportunity shall notify
the Department of Revenue of the certification. The Department
of Revenue shall notify the public utilities of the exemption
status of the gross receipts received from, and the electricity
used or consumed by, the certified business enterprises. Such
exemption status shall be effective within 3 months after
certification.
(e-5) Any municipality that imposes taxes upon public
utilities or upon the privilege of using or consuming
electricity pursuant to this Section may, by ordinance, exempt
from those taxes, for a period not exceeding 30 years, a
specified percentage not to exceed 10% of the gross receipts of
public utilities received from, or electricity used or consumed
by, a qualified business enterprise.
Upon adoption of the ordinance authorizing the reduction,
the municipal clerk shall transmit a copy of that ordinance to
the Department of Commerce and Economic Opportunity. The

09800HB0380ham001 - 32 - LRB098 03212 HLH 48662 a
Department of Commerce and Economic Opportunity shall
determine whether the business enterprise located in the
municipality meets the criteria prescribed in this subsection
(e-5). If the Department of Commerce and Economic Opportunity
determines that the business enterprise is a qualified business
enterprise, it shall grant certification. The Department of
Commerce and Economic Opportunity shall act upon certification
requests within 30 days after receipt of the ordinance.
Upon certification of the business enterprise by the
Department of Commerce and Economic Opportunity, the
Department of Commerce and Economic Opportunity shall notify
the Department of Revenue of the certification. The Department
of Revenue shall notify the public utilities of the reduction.
The reduction shall be effective within 3 months after
certification by the Department of Commerce and Economic
Opportunity.
The qualified business enterprise shall certify relocation
of the 100 full-time equivalent jobs and creation of 100
full-time equivalent jobs to the Department of Commerce and
Economic Opportunity within 48 months after the effective date
of the ordinance.
The Department of Commerce and Economic Opportunity shall
have the power to promulgate rules and regulations to carry out
the provisions of this subsection, including, but not limited
to, rules authorizing the Department of Commerce and Economic
Opportunity to suspend the exemption available to a qualified

09800HB0380ham001 - 33 - LRB098 03212 HLH 48662 a
business enterprise should the business enterprise fail to
comply with the terms and conditions of the certification.
As used in this subsection (e-5), a "qualified business
enterprise" is a business enterprise that:
(1) is engaged in agricultural processing;
(2) pledges to make investments which cause the
creation of a minimum of 100 full-time equivalent jobs and
the retention of 100 full-time equivalent jobs in Illinois;
and
(3) is certified by the Department of Commerce and
Economic Opportunity as complying with the requirements
specified in items (1) and (2) of this subsection.
(f) A municipality that imposes taxes upon public utilities
or upon the privilege of using or consuming electricity under
this Section and whose territory includes part of another unit
of local government or a school district may by ordinance
exempt the other unit of local government or school district
from those taxes.
(g) The amendment of this Section by Public Act 84-127
shall take precedence over any other amendment of this Section
by any other amendatory Act passed by the 84th General Assembly
before the effective date of Public Act 84-127.
(h) In any case in which, before July 1, 1992, a person
engaged in the business of transmitting messages through the
use of mobile equipment, such as cellular phones and paging
systems, has determined the municipality within which the gross

09800HB0380ham001 - 34 - LRB098 03212 HLH 48662 a
receipts from the business originated by reference to the
location of its transmitting or switching equipment, then (i)
neither the municipality to which tax was paid on that basis
nor the taxpayer that paid tax on that basis shall be required
to rebate, refund, or issue credits for any such tax or charge
collected from customers to reimburse the taxpayer for the tax
and (ii) no municipality to which tax would have been paid with
respect to those gross receipts if the provisions of this
amendatory Act of 1991 had been in effect before July 1, 1992,
shall have any claim against the taxpayer for any amount of the
tax.
(Source: P.A. 94-793, eff. 5-19-06.)
Section 25. The Public Utilities Act is amended by changing
Sections 2-202, 9-221, and 9-222 and by adding Section 9-222.1B
as follows:
(220 ILCS 5/2-202) (from Ch. 111 2/3, par. 2-202)
Sec. 2-202. Policy; Public Utility Fund; tax.
(a) It is declared to be the public policy of this State
that in order to maintain and foster the effective regulation
of public utilities under this Act in the interests of the
People of the State of Illinois and the public utilities as
well, the public utilities subject to regulation under this Act
and which enjoy the privilege of operating as public utilities
in this State, shall bear the expense of administering this Act

09800HB0380ham001 - 35 - LRB098 03212 HLH 48662 a
by means of a tax on such privilege measured by the annual
gross revenue of such public utilities in the manner provided
in this Section. For purposes of this Section, "expense of
administering this Act" includes any costs incident to studies,
whether made by the Commission or under contract entered into
by the Commission, concerning environmental pollution problems
caused or contributed to by public utilities and the means for
eliminating or abating those problems. Such proceeds shall be
deposited in the Public Utility Fund in the State treasury.
(b) All of the ordinary and contingent expenses of the
Commission incident to the administration of this Act shall be
paid out of the Public Utility Fund except the compensation of
the members of the Commission which shall be paid from the
General Revenue Fund. Notwithstanding other provisions of this
Act to the contrary, the ordinary and contingent expenses of
the Commission incident to the administration of the Illinois
Commercial Transportation Law may be paid from appropriations
from the Public Utility Fund through the end of fiscal year
1986.
(c) A tax is imposed upon each public utility subject to
the provisions of this Act equal to .08% of its gross revenue
for each calendar year commencing with the calendar year
beginning January 1, 1982, except that the Commission may, by
rule, establish a different rate no greater than 0.1%. For
purposes of this Section, "gross revenue" shall not include
revenue from the production, transmission, distribution, sale,

09800HB0380ham001 - 36 - LRB098 03212 HLH 48662 a
delivery, or furnishing of electricity. "Gross revenue" shall
not include amounts paid by telecommunications retailers under
the Telecommunications Infrastructure Maintenance Fee Act.
"Gross revenue" shall not include 10% of the consideration
received from business enterprises certified under Section
9-222.1B of the Public Utilities Act, as amended, during the
period of time specified by the Department of Commerce and
Economic Opportunity in the certification.
(d) Annual gross revenue returns shall be filed in
accordance with paragraph (1) or (2) of this subsection (d).
(1) Except as provided in paragraph (2) of this
subsection (d), on or before January 10 of each year each
public utility subject to the provisions of this Act shall
file with the Commission an estimated annual gross revenue
return containing an estimate of the amount of its gross
revenue for the calendar year commencing January 1 of said
year and a statement of the amount of tax due for said
calendar year on the basis of that estimate. Public
utilities may also file revised returns containing updated
estimates and updated amounts of tax due during the
calendar year. These revised returns, if filed, shall form
the basis for quarterly payments due during the remainder
of the calendar year. In addition, on or before March 31 of
each year, each public utility shall file an amended return
showing the actual amount of gross revenues shown by the
company's books and records as of December 31 of the

09800HB0380ham001 - 37 - LRB098 03212 HLH 48662 a
previous year. Forms and instructions for such estimated,
revised, and amended returns shall be devised and supplied
by the Commission.
(2) Beginning with returns due after January 1, 2002,
the requirements of paragraph (1) of this subsection (d)
shall not apply to any public utility in any calendar year
for which the total tax the public utility owes under this
Section is less than $10,000. For such public utilities
with respect to such years, the public utility shall file
with the Commission, on or before March 31 of the following
year, an annual gross revenue return for the year and a
statement of the amount of tax due for that year on the
basis of such a return. Forms and instructions for such
returns and corrected returns shall be devised and supplied
by the Commission.
(e) All returns submitted to the Commission by a public
utility as provided in this subsection (e) or subsection (d) of
this Section shall contain or be verified by a written
declaration by an appropriate officer of the public utility
that the return is made under the penalties of perjury. The
Commission may audit each such return submitted and may, under
the provisions of Section 5-101 of this Act, take such measures
as are necessary to ascertain the correctness of the returns
submitted. The Commission has the power to direct the filing of
a corrected return by any utility which has filed an incorrect
return and to direct the filing of a return by any utility

09800HB0380ham001 - 38 - LRB098 03212 HLH 48662 a
which has failed to submit a return. A taxpayer's signing a
fraudulent return under this Section is perjury, as defined in
Section 32-2 of the Criminal Code of 2012.
(f) (1) For all public utilities subject to paragraph (1)
of subsection (d), at least one quarter of the annual amount of
tax due under subsection (c) shall be paid to the Commission on
or before the tenth day of January, April, July, and October of
the calendar year subject to tax. In the event that an
adjustment in the amount of tax due should be necessary as a
result of the filing of an amended or corrected return under
subsection (d) or subsection (e) of this Section, the amount of
any deficiency shall be paid by the public utility together
with the amended or corrected return and the amount of any
excess shall, after the filing of a claim for credit by the
public utility, be returned to the public utility in the form
of a credit memorandum in the amount of such excess or be
refunded to the public utility in accordance with the
provisions of subsection (k) of this Section. However, if such
deficiency or excess is less than $1, then the public utility
need not pay the deficiency and may not claim a credit.
(2) Any public utility subject to paragraph (2) of
subsection (d) shall pay the amount of tax due under subsection
(c) on or before March 31 next following the end of the
calendar year subject to tax. In the event that an adjustment
in the amount of tax due should be necessary as a result of the
filing of a corrected return under subsection (e), the amount

09800HB0380ham001 - 39 - LRB098 03212 HLH 48662 a
of any deficiency shall be paid by the public utility at the
time the corrected return is filed. Any excess tax payment by
the public utility shall be returned to it after the filing of
a claim for credit, in the form of a credit memorandum in the
amount of the excess. However, if such deficiency or excess is
less than $1, the public utility need not pay the deficiency
and may not claim a credit.
(g) Each installment or required payment of the tax imposed
by subsection (c) becomes delinquent at midnight of the date
that it is due. Failure to make a payment as required by this
Section shall result in the imposition of a late payment
penalty, an underestimation penalty, or both, as provided by
this subsection. The late payment penalty shall be the greater
of:
(1) $25 for each month or portion of a month that the
installment or required payment is unpaid or
(2) an amount equal to the difference between what
should have been paid on the due date, based upon the most
recently filed estimated, annual, or amended return, and
what was actually paid, times 1%, for each month or portion
of a month that the installment or required payment goes
unpaid. This penalty may be assessed as soon as the
installment or required payment becomes delinquent.
The underestimation penalty shall apply to those public
utilities subject to paragraph (1) of subsection (d) and shall
be calculated after the filing of the amended return. It shall

09800HB0380ham001 - 40 - LRB098 03212 HLH 48662 a
be imposed if the amount actually paid on any of the dates
specified in subsection (f) is not equal to at least one-fourth
of the amount actually due for the year, and shall equal the
greater of:
(1) $25 for each month or portion of a month that the
amount due is unpaid or
(2) an amount equal to the difference between what
should have been paid, based on the amended return, and
what was actually paid as of the date specified in
subsection (f), times a percentage equal to 1/12 of the sum
of 10% and the percentage most recently established by the
Commission for interest to be paid on customer deposits
under 83 Ill. Adm. Code 280.70(e)(1), for each month or
portion of a month that the amount due goes unpaid, except
that no underestimation penalty shall be assessed if the
amount actually paid on or before each of the dates
specified in subsection (f) was based on an estimate of
gross revenues at least equal to the actual gross revenues
for the previous year. The Commission may enforce the
collection of any delinquent installment or payment, or
portion thereof by legal action or in any other manner by
which the collection of debts due the State of Illinois may
be enforced under the laws of this State. The executive
director or his designee may excuse the payment of an
assessed penalty or a portion of an assessed penalty if he
determines that enforced collection of the penalty as

09800HB0380ham001 - 41 - LRB098 03212 HLH 48662 a
assessed would be unjust.
(h) All sums collected by the Commission under the
provisions of this Section shall be paid promptly after the
receipt of the same, accompanied by a detailed statement
thereof, into the Public Utility Fund in the State treasury.
(i) During the month of October of each odd-numbered year
the Commission shall:
(1) determine the amount of all moneys deposited in the
Public Utility Fund during the preceding fiscal biennium
plus the balance, if any, in that fund at the beginning of
that biennium;
(2) determine the sum total of the following items: (A)
all moneys expended or obligated against appropriations
made from the Public Utility Fund during the preceding
fiscal biennium, plus (B) the sum of the credit memoranda
then outstanding against the Public Utility Fund, if any;
and
(3) determine the amount, if any, by which the sum
determined as provided in item (1) exceeds the amount
determined as provided in item (2).
If the amount determined as provided in item (3) of this
subsection exceeds 50% of the previous fiscal year's
appropriation level, the Commission shall then compute the
proportionate amount, if any, which (x) the tax paid hereunder
by each utility during the preceding biennium, and (y) the
amount paid into the Public Utility Fund during the preceding

09800HB0380ham001 - 42 - LRB098 03212 HLH 48662 a
biennium by the Department of Revenue pursuant to Sections 2-9
and 2-11 of the Electricity Excise Tax Law, bears to the
difference between the amount determined as provided in item
(3) of this subsection (i) and 50% of the previous fiscal
year's appropriation level. The Commission shall cause the
proportionate amount determined with respect to payments made
under the Electricity Excise Tax Law to be transferred into the
General Revenue Fund in the State Treasury, and notify each
public utility that it may file during the 3 month period after
the date of notification a claim for credit for the
proportionate amount determined with respect to payments made
hereunder by the public utility. If the proportionate amount is
less than $10, no notification will be sent by the Commission,
and no right to a claim exists as to that amount. Upon the
filing of a claim for credit within the period provided, the
Commission shall issue a credit memorandum in such amount to
such public utility. Any claim for credit filed after the
period provided for in this Section is void.
(j) Credit memoranda issued pursuant to subsection (f) and
credit memoranda issued after notification and filing pursuant
to subsection (i) may be applied for the 2 year period from the
date of issuance, against the payment of any amount due during
that period under the tax imposed by subsection (c), or,
subject to reasonable rule of the Commission including
requirement of notification, may be assigned to any other
public utility subject to regulation under this Act. Any

09800HB0380ham001 - 43 - LRB098 03212 HLH 48662 a
application of credit memoranda after the period provided for
in this Section is void.
(k) The chairman or executive director may make refund of
fees, taxes or other charges whenever he shall determine that
the person or public utility will not be liable for payment of
such fees, taxes or charges during the next 24 months and he
determines that the issuance of a credit memorandum would be
unjust.
(Source: P.A. 97-1150, eff. 1-25-13.)
(220 ILCS 5/9-221) (from Ch. 111 2/3, par. 9-221)
Sec. 9-221. Municipal utility taxes; recovery from
customers. Whenever a municipality pursuant to Section 8-11-2
of the Illinois Municipal Code, as heretofore and hereafter
amended, imposes a tax on any public utility pursuant to
Section 8-11-2 of the Illinois Municipal Code, such utility may
charge its customers, other than customers who are certified
business enterprises under paragraph (e) of Section 8-11-2 of
the Illinois Municipal Code or are exempted from those taxes
under paragraph (f) of that Section, to the extent of such
exemption and during the period in which such exemption is in
effect, in addition to any rate authorized by this Act, an
additional charge equal to the sum of (1) an amount equal to
such municipal tax, or any part thereof (2) 3% of such tax, or
any part thereof, as the case may be, to cover costs of
accounting, and (3) an amount equal to the increase in taxes

09800HB0380ham001 - 44 - LRB098 03212 HLH 48662 a
and other payments to governmental bodies resulting from the
amount of such additional charge. Such utility shall file with
the Commission a true and correct copy of the municipal
ordinance imposing such tax; and also shall file with the
Commission a supplemental schedule applicable to such
municipality which shall specify such additional charge and
which shall become effective upon filing without further
notice. Such additional charge shall be shown separately on the
utility bill to each customer. The Commission shall have power
to investigate whether or not such supplemental schedule
correctly specifies such additional charge, but shall have no
power to suspend such supplemental schedule. If the Commission
finds, after a hearing, that such supplemental schedule does
not correctly specify such additional charge, it shall by order
require a refund to the appropriate customers of the excess, if
any, with interest, in such manner as it shall deem just and
reasonable, and in and by such order shall require the utility
to file an amended supplemental schedule corresponding to the
finding and order of the Commission. A public utility may not
impose a charge under this Section on any business enterprise
certified under subsection (e) or (e-5) of Section 8-11-2 of
the Illinois Municipal Code, or on any entity that is exempt
under subsection (f) of that Section, to the extent of the
applicable exemption and during the period in which the
exemption is in effect.
(Source: P.A. 87-895; 88-132.)

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(220 ILCS 5/9-222) (from Ch. 111 2/3, par. 9-222)
Sec. 9-222. Whenever a tax is imposed upon a public utility
engaged in the business of distributing, supplying,
furnishing, or selling gas for use or consumption pursuant to
Section 2 of the Gas Revenue Tax Act, or whenever a tax is
required to be collected by a delivering supplier pursuant to
Section 2-7 of the Electricity Excise Tax Act, or whenever a
tax is imposed upon a public utility pursuant to Section 2-202
of this Act, such utility may charge its customers, other than
customers who are high impact businesses under Section 5.5 of
the Illinois Enterprise Zone Act, or certified business
enterprises under Section 9-222.1 of this Act, to the extent of
such exemption and during the period in which such exemption is
in effect, in addition to any rate authorized by this Act, an
additional charge equal to the total amount of such taxes. The
exemption of this Section relating to high impact businesses
shall be subject to the provisions of subsections (a), (b), and
(b-5) of Section 5.5 of the Illinois Enterprise Zone Act. This
requirement shall not apply to taxes on invested capital
imposed pursuant to the Messages Tax Act, the Gas Revenue Tax
Act and the Public Utilities Revenue Act. Such utility shall
file with the Commission a supplemental schedule which shall
specify such additional charge and which shall become effective
upon filing without further notice. Such additional charge
shall be shown separately on the utility bill to each customer.

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The Commission shall have the power to investigate whether or
not such supplemental schedule correctly specifies such
additional charge, but shall have no power to suspend such
supplemental schedule. If the Commission finds, after a
hearing, that such supplemental schedule does not correctly
specify such additional charge, it shall by order require a
refund to the appropriate customers of the excess, if any, with
interest, in such manner as it shall deem just and reasonable,
and in and by such order shall require the utility to file an
amended supplemental schedule corresponding to the finding and
order of the Commission. Except with respect to taxes imposed
on invested capital, such tax liabilities shall be recovered
from customers solely by means of the additional charges
authorized by this Section. A public utility may not impose a
charge under this Section on any customers who are high impact
businesses under Section 5.5 of the Illinois Enterprise Zone
Act, or certified business enterprises under Section 9-222.1 or
9-222.1B of this Act, to the extent of the applicable exemption
and during the period in which the exemption is in effect.
(Source: P.A. 91-914, eff. 7-7-00; 92-12, eff. 7-1-01.)
(220 ILCS 5/9-222.1B new)
Sec. 9-222.1B. Agricultural processing.
(a) All of the facilities of a qualified business
enterprise shall be exempt from 10% of the additional charges
added to the business enterprise's utility bills under Section

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9-222 of this Act, upon approval by the Department of Commerce
and Economic Opportunity.
(b) The Department of Commerce and Economic Opportunity
shall determine the period during which the reduction under
subsection (a) is in effect, which shall not exceed 30 years.
(c) The Department of Commerce and Economic Opportunity
shall have the power to promulgate rules and regulations to
carry out the provisions of this Section, including, but not
limited to, procedures for applying for the exemption
authorized under this Section and rules authorizing the
Department of Commerce and Economic Opportunity to suspend the
exemption available to a qualified business enterprise should
the business enterprise fail to comply with the terms and
conditions of the certification.
(d) The qualified business enterprise shall certify
relocation of the 100 full-time equivalent jobs and creation of
100 full-time equivalent jobs to the Department of Commerce and
Economic Opportunity within 48 months after its application is
filed with the Department.
(e) As used in this Section, a "qualified business
enterprise" is a business enterprise that:
(1) is engaged in agricultural processing;
(2) pledges to make investments which cause the
creation of a minimum of 100 full-time equivalent jobs and
the retention of 100 full-time equivalent jobs in Illinois;
and

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(3) is certified by the Department of Commerce and
Economic Opportunity as complying with the requirements
specified in items (1) and (2) of this subsection.
Section 99. Effective date. This Act takes effect upon
becoming law.".