Energy Assistance Charge / Rate changes + miscellaneous updates

86 Illinois Administrative Code - Sections 516.120, 516.130, and 516.140

This rulemaking amends 86 Ill. Adm. Code 516.120 Energy Assistance Charge Rates to implement the rate changes in Public Acts 102-0671 and 102-0673. The rulemaking also amends 86 Ill. Adm. Code 516.130 Energy Assistance Charge Return to change “Illinois Business Tax Number” to “Illinois Account Identification Number” and creates a new section 516.140 to provide the sections of the Retailers’ Occupation Tax Act that are incorporated by reference into the Energy Assistance Act.

  • 1st Notice Begins: 3/18/2022
  • 1st Notice Ends: 5/2/2022
  • 2nd Notice Submitted: 5/3/2022
  • Formal JCAR Meeting:
  • Final Rule:

Income Tax

86 Illinois Administrative Code - Sections 100.2171, 100.2190, and 100.2193

This rulemaking amends sections 100.2171, 100.2190 and 100.2193 to reflect new sunset dates for the Angel Investment Credit, Affordable Housing Donations Credit and Student Assistance Contributions Credit enacted by Public Acts 99-915, 101-645, 102-016 and 102-0289.

  • 1st Notice Begins: 2/18/2022
  • 1st Notice Ends: 4/4/2022
  • 2nd Notice Submitted: 4/6/2022
  • Formal JCAR Meeting: 5/17/2022
  • Final Rule:

Income Tax

86 Illinois Administrative Code - Sections 100.2198 and 100.2330

This rulemaking amends section 100.2198 to provide procedures for clawing back EDGE credits authorized under P.A. 102-0040 when a taxpayer ceases operations at a location that is subject to an EDGE Agreement. This rulemaking amends section 100.2330(f)(5) to incorporate the changes made by P.A. 102-0016 limiting to $100,000 the amount of net losses that may be deducted in tax years ending on or after December 31, 2021 and before December 31, 2024.

  • 1st Notice Begins: 2/4/2022
  • 1st Notice Ends: 3/21/2022
  • 2nd Notice Submitted: 4/5/2022
  • Formal JCAR Meeting: 5/17/2022
  • Final Rule:

Invest in Kids Act

86 Illinois Administrative Code - Sections 1000.100, 1000.200, 1000.600, 1000.700, 1000.800, and 1000.Appendix A

This rulemaking implements the changes made by P.A. 102-0016. P.A. 102-0016 adds technical academies that operate or will operate jointly administered CTE programs to the types of schools that may receive scholarships from scholarship granting organizations on behalf of qualified students attending technical academies. The rule also strikes the reference to Illinois Appellate courts in Section 1000.Appendix A.

  • 1st Notice Begins: 1/6/2022
  • 1st Notice Ends: 2/21/2022
  • 2nd Notice Submitted: 4/12/2022
  • Formal JCAR Meeting: 5/17/2022
  • Final Rule:

Retailers' Occupation Tax / Allows IDOR to post a Notice of Expiration of Certificate of Registration

86 Illinois Administrative Code - Sections 130.701 and 130.Illustration D

Amends Section 130.701– General Information For Obtaining A Certificate of Registration. Currently the Department of Revenue is allowed to post a Notice of Revocation of Certificate of Registration. This amended regulation allows the Department of Revenue to post a Notice of Expiration of Certificate of Registration. An example of the Notice is included and referred to as Illustration D.

  • 1st Notice Begins: 2/18/2022
  • 1st Notice Ends: 4/2/2022
  • 2nd Notice Submitted: 4/5/2022
  • Formal JCAR Meeting: 5/17/2022
  • Final Rule:

Retailers' Occupation Tax / Explains the unique nature of a verified credit

86 Illinois Administrative Code - Section 130.1520

This new regulation explains the unique nature of a verified credit and the ways it can be used. Verified credits represent a unique situation in sales taxes. They arise when a taxpayer remits more tax than is due, and the Department can verify this overpayment from the face of the return. This is in contrast to situations where a credit memorandum is involved, because in these situations, the taxpayer must prove the tax was overpaid before getting a credit or refund (e.g., tax was erroneously remitted on a sale that should have been tax exempt and the retailer is able to document this exemption – after giving back the taxes to the purchaser that erroneously remitted them).

The rule explains the different ways a verified credit may be used. For instance, it may be rolled over in the taxpayer's account to offset liability of the taxpayer that arises under the Retailers' Occupation Tax Act, the Use Tax Act, the Service Occupation Tax Act, or the Service Use Tax Act subsequent to the origination of the verified credit. It may also be converted to a credit memorandum in several ways. Once converted, the resulting credit memorandum may be assigned to other taxpayers in the same manner as other credit memoranda issued to taxpayers by the Department. The rule explains the provisions of this regulation apply equally to verified credits authorized under the provisions of other tax acts administered by the Department.

The rule establishes new procedures for the conversion of verified credits into credit memoranda. It has long been the Department's policy that verified credits can be converted to credit memos, but only within 3 to 3.5 years after they arose. Since the Department can verify the overpayment from the face of the return and the taxpayer has the immediate use of the verified credit to apply against its liability without the need to file a claim for credit and prove the overpayment, the new rule provides that there is no statute of limitations for converting a verified credit to a credit memo – it can be converted at any time after the verified credit arises. However, the rule also reiterates the longstanding Uniform Penalty and Interest Act regulation found at 86 Ill. Adm. Code 700.230(a)(2) stating that no interest is paid on verified credits, clarifying that this applies to situations when a verified credit is converted to a credit memo.

  • 1st Notice Begins: 3/25/2022
  • 1st Notice Ends: 5/9/2022
  • 2nd Notice Submitted:
  • Formal JCAR Meeting:
  • Final Rule:

Retailers’ Occupation Tax

86 Illinois Administrative Code - Sections 130.120 and 130.311

Amends Section 130.120(vv) Nontaxable Transactions and Section 130.311(b) Drugs, Medicines, Medical Appliances and Grooming and Hygiene Products – This amended regulation implements Public Act 102-0016 and represents a change in the sunset provisions of the menstrual pads, tampons, and menstrual cups exemption by extending it through the new sunset date of December 31, 2026. Previously, the exemption was to sunset by operation of law on August 18, 2021. Additionally, this amendment implements Public Act 102-0004 by changing references to “urine testing materials” to “blood sugar testing materials” to reflect the statutory language.

  • 1st Notice Begins: 1/28/2022
  • 1st Notice Ends: 3/14/2022
  • 2nd Notice Submitted: 3/18/2022
  • Formal JCAR Meeting: 4/19/2022
  • Final Rule: Published at 46 Illinois Register 7785

Service Occupation Tax / Explains the unique nature of a verified credit

86 Illinois Administrative Code - Section 140.1420

This new regulation explains the unique nature of a verified credit and the ways it can be used. Verified credits represent a unique situation in sales taxes. They arise when a taxpayer remits more tax than is due, and the Department is able to verify this overpayment from the face of the return. This is in contrast to situations where a credit memorandum is involved, because in these situations, the taxpayer must prove that the tax was overpaid before getting a credit or refund (e.g., tax was erroneously remitted on a sale that should have been tax exempt and the retailer is able to document this exemption – after giving back the taxes to the purchaser that erroneously remitted them).

The rule explains the different ways a verified credit may be used. For instance, it may be rolled over in the taxpayer's account to offset liability of the taxpayer that arises under the Retailers' Occupation Tax Act, the Use Tax Act, the Service Occupation Tax Act, or the Service Use Tax Act subsequent to the origination of the verified credit. It may also be converted to a credit memorandum in several ways. Once converted, the resulting credit memorandum may be assigned to other taxpayers in the same manner as other credit memoranda issued to taxpayers by the Department. The rule explains that the provisions of this regulation apply equally to verified credits that are authorized under the provisions of other tax acts administered by the Department.

The rule establishes new procedures for the conversion of verified credits into credit memoranda. It has long been the Department's policy that verified credits can be converted to credit memos, but only within 3 to 3.5 years after they arose. Since the Department can verify the overpayment from the face of the return and the taxpayer has the immediate use of the verified credit to apply against its liability without the need to file a claim for credit and prove the overpayment, the new rule provides that there is no statute of limitations for converting a verified credit to a credit memo – it can be converted at any time after the verified credit arises. However, the rule also reiterates the longstanding Uniform Penalty and Interest Act regulation found at 86 Ill. Adm. Code 700.230(a)(2) stating that no interest is paid on verified credits, clarifying that this applies to situations when a verified credit is converted to a credit memo.

  • 1st Notice Begins: 3/25/2022
  • 1st Notice Ends: 5/9/2022
  • 2nd Notice Submitted:
  • Formal JCAR Meeting:
  • Final Rule:

Service Use Tax / Explains the unique nature of a verified credit

86 Illinois Administrative Code - Section 160.151

This new regulation explains the unique nature of a verified credit and the ways in which it can be used. Verified credits represent a unique situation in sales taxes. They arise when a taxpayer remits more tax than is due, and the Department is able to verify this overpayment from the face of the return. This is in contrast to situations where a credit memorandum is involved, because in these situations, the taxpayer must prove that the tax was overpaid before getting a credit or refund (e.g., tax was erroneously remitted on a sale that should have been tax exempt and the retailer is able to document this exemption – after giving back the taxes to the purchaser that erroneously remitted them).

The rule explains the different ways a verified credit may be used. For instance, it may be rolled over in the taxpayer's account to offset liability of the taxpayer that arises under the Retailers' Occupation Tax Act, the Use Tax Act, the Service Occupation Tax Act, or the Service Use Tax Act subsequent to the origination of the verified credit. It may also be converted to a credit memorandum in several ways. Once converted, the resulting credit memorandum may be assigned to other taxpayers in the same manner as other credit memoranda issued to taxpayers by the Department. The rule explains that the provisions of this regulation apply equally to verified credits that are authorized under the provisions of other tax acts administered by the Department.

The rule establishes new procedures for the conversion of verified credits into credit memoranda. It has long been the Department's policy that verified credits can be converted to credit memos, but only within 3 to 3.5 years after they arose. Since the Department can verify the overpayment from the face of the return and the taxpayer has the immediate use of the verified credit to apply against its liability without the need to file a claim for credit and prove the overpayment, the new rule provides that there is no statute of limitations for converting a verified credit to a credit memo – it can be converted at any time after the verified credit arises. However, the rule also reiterates the longstanding Uniform Penalty and Interest Act regulation found at 86 Ill. Adm. Code 700.230(a)(2) stating that no interest is paid on verified credits, clarifying that this applies to situations when a verified credit is converted to a credit memo.

  • 1st Notice Begins: 3/25/2022
  • 1st Notice Ends: 5/9/2022
  • 2nd Notice Submitted:
  • Formal JCAR Meeting:
  • Final Rule:

Use Tax / Explains the unique nature of a verified credit

86 Illinois Administrative Code - Section 150.1420

This new regulation explains the unique nature of a verified credit and the ways in which it can be used. Verified credits represent a unique situation in sales taxes. They arise when a taxpayer remits more tax than is due, and the Department is able to verify this overpayment from the face of the return. This is in contrast to situations where a credit memorandum is involved, because in these situations, the taxpayer must prove that the tax was overpaid before getting a credit or refund (e.g., tax was erroneously remitted on a sale that should have been tax exempt and the retailer is able to document this exemption – after giving back the taxes to the purchaser that erroneously remitted them).

The rule explains the different ways a verified credit may be used. For instance, it may be rolled over in the taxpayer's account to offset liability of the taxpayer that arises under the Retailers' Occupation Tax Act, the Use Tax Act, the Service Occupation Tax Act, or the Service Use Tax Act subsequent to the origination of the verified credit. It may also be converted to a credit memorandum in several ways. Once converted, the resulting credit memorandum may be assigned to other taxpayers in the same manner as other credit memoranda issued to taxpayers by the Department. The rule explains that the provisions of this regulation apply equally to verified credits that are authorized under the provisions of other tax acts administered by the Department.

The rule establishes new procedures for the conversion of verified credits into credit memoranda. It has long been the Department's policy that verified credits can be converted to credit memos, but only within 3 to 3.5 years after they arose. Since the Department can verify the overpayment from the face of the return and the taxpayer has the immediate use of the verified credit to apply against its liability without the need to file a claim for credit and prove the overpayment, the new rule provides that there is no statute of limitations for converting a verified credit to a credit memo – it can be converted at any time after the verified credit arises. However, the rule also reiterates the longstanding Uniform Penalty and Interest Act regulation found at 86 Ill. Adm. Code 700.230(a)(2) stating that no interest is paid on verified credits, clarifying that this applies to situations when a verified credit is converted to a credit memo.

  • 1st Notice Begins: 3/25/2022
  • 1st Notice Ends: 5/9/2022
  • 2nd Notice Submitted:
  • Formal JCAR Meeting:
  • Final Rule:

Water and Sewer Assistance Charge

86 Illinois Administrative Code - Sections 515.100, 515.110, 515.120, 515.130, and 515.140

This rulemaking creates a new Part 515 to implement the provisions of Public Act 102-0262, which created the Water and Sewer Financial Assistance Act. This Act establishes a low-income water and sewer assistance program that allows water and sewer providers to voluntarily participate by assessing each of its customer accounts a charge to be paid into a fund to benefit eligible applicants. The rules provide key definitions, the nature of the charge, the rates, the process for filing a return with the Department, and the sections of the Retailers’ Occupation Tax Act that are incorporated by reference into the Water and Sewer Assistance Act.

  • 1st Notice Begins: 2/14/2021
  • 1st Notice Ends: 3/30/2022
  • 2nd Notice Submitted: 4/1/2022
  • Formal JCAR Meeting: 4/19/2022
  • Final Rule: Published at 46 Illinois Register 7818