Illinois – Exemption for Electricity, Gas, and Water

SALT Report 2973 – Recently enacted legislation in Illinois provides that purchases of electricity, gas, and water are not subject to the Use, Service Use, Service Occupation, or Retailers’ Occupation Tax.

Specifically, under the provisions of Senate Bill 2243 electricity that is delivered to customers by wire; natural or artificial gas that is delivered to customers through pipes, pipelines, or mains; and water that is delivered to customers through pipes, pipelines, or mains is not subject to tax.

However, the exemption does not apply to machinery used in the generation of electricity, the generation or treatment of gas, or to the treatment of water for wholesale or retail sale.

The exemption is effective January 1, 2014.

For Further Information

Illinois General Assembly – Senate Bill 2243, Laws 2013