Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart C - CERTAIN STATUTORY EXEMPTIONS › Section 130.320 - Gasohol, Majority Blended Ethanol, Biodiesel Blends, and 100% Biodiesel

Current through Register Vol. 48, No. 28, July 12, 2024
a) Effective
				January 1, 1990 and prior to July 1, 2003, sales of
gasohol, as defined
				in
Section 3-40 of
the Use Tax Act,
are subject to
				tax, based upon 70% of the proceeds of sales. On and after July 1, 2003 and on
				or before July 1, 2017, tax shall be based upon 80% of the proceeds from sales
				of gasohol. On and after July 1, 2017, tax shall be based upon 100% of the
				proceeds of sales of gasohol.
Effective July 1, 2003, if at any time,
				the tax under the
Retailers' Occupation Tax Act (ROTA)
on
				sales of gasohol is imposed at the rate of
				1.25 %, then the tax imposed by
				the Act applies to 100% of the proceeds of sales of gasohol made during that
				time.
[35 ILCS 120/2-10 ]
b)
With respect to majority blended
				ethanol fuel, as defined in
Section 3-44 of
the Use Tax Act,
				the tax imposed by
the ROTA
does not apply to the proceeds of
				sales made on or after July 1, 2003 and on or before December 31, 2023, but
				applies to 100% of the proceeds of sales made thereafter.
[35 ILCS
				120/2-10 ]
c)
With respect to biodiesel blends,
				as defined in
Section 3-42 of
the Use Tax Act, with no less
				than 1% and no more than 10% biodiesel, the tax imposed by
the ROTA
applies to 80% of the proceeds of sales made on or after July 1, 2003
				and on or before December 31, 2018 and 100% of the proceeds of sales made after
				December 31, 2018 and before January 1, 2024. On and after January 1, 2024 and
				on or before December 31, 2030, the taxation of biodiesel, renewable diesel,
				and biodiesel blends shall be as provided in Section 3-5.1 of the Use Tax
				Act
which is reflected in subsection (e) of this Section.
If
				at any time, however, the tax under
the ROTA
on sales of
				biodiesel blends, as defined in the Use Tax Act, with no less than 1% and no
				more than 10% biodiesel is imposed at the rate of 1.25%, then the tax imposed
				by
the ROTA
applies to 100% of the proceeds of sales of
				biodiesel blends with no less than 1% and no more than 10% biodiesel made
				during that time.
[35 ILCS 120/2-10 ]
d)
With respect to biodiesel, as
				defined in
Section 3-41 of
the Use Tax Act, and biodiesel
				blends, as defined in
Section 3-42 of
the Use Tax Act, with
				more than 10% but no more than 99% biodiesel, the tax imposed by
the
				ROTA
does not apply to the proceeds of sales made on or after July 1,
				2003 and on or before December 31, 2023. On and after January 1, 2024 and on or
				before December 31, 2030, the taxation of biodiesel, renewable diesel, and
				biodiesel blends shall be as provided in Section 3-5.1 of the Use Tax
				Act
which is reflected in subsection (e) below. [35 ILCS
				120/2-10 ]
e) Tax rate on biodiesel, renewable diesel,
				and biodiesel blends, on January 1, 2024 through December 31, 2030.
1)
On and after January 1, 2024 and
				on or before December 31, 2030, the taxes imposed by
the Use Tax
				Act
, the Service Use Tax Act, the Service Occupation Tax Act, or the
				Retailers' Occupation Tax Act apply to 100% of the proceeds of sales of (i)
				biodiesel blends with no less than 1% and no more than 10% of biodiesel and
				(ii) any diesel fuel containing no less than 1% and no more than 10% of
				renewable diesel.
[35 ILCS 105/3-5.1(a)]
2)
From January 1, 2024 through March
				31, 2024, the taxes imposed by
the Use Tax Act
, the Service
				Use Tax Act, the Service Occupation Tax Act, or the Retailers' Occupation Tax
				Act do not apply to the proceeds of sales of any diesel fuel containing more
				than 10% biodiesel or renewable diesel.
[35 ILCS
				105/3-5.1(b)]
3)
From April 1, 2024 through
				November 30, 2024, the taxes imposed by
the Use Tax Act
, the
				Service Use Tax Act, the Service Occupation Tax Act, or the Retailers'
				Occupation Tax Act do not apply to the proceeds of sales of any diesel fuel
				containing more than 13% biodiesel or renewable diesel.
[35 ILCS
				105/3-5.1(c)]
4)
From December 1, 2024 through
				March 31, 2025, the taxes imposed by
the Use Tax Act
, the
				Service Use Tax Act, the Service Occupation Tax Act, or the Retailers'
				Occupation Tax Act do not apply to the proceeds of sales of any diesel fuel
				containing more than 10% biodiesel or renewable diesel.
[35 ILCS
				105/3-5.1(d)]
5)
From April 1, 2025 through
				November 30, 2025, the taxes imposed by
the Use Tax Act
, the
				Service Use Tax Act, the Service Occupation Tax Act, or the Retailers'
				Occupation Tax Act do not apply to the proceeds of sales of any diesel fuel
				containing more than 16% biodiesel or renewable diesel.
[35 ILCS
				105/3-5.1(e)]
6)
From December 1, 2025 through
				March 31, 2026, the taxes imposed by
the Use Tax Act
, the
				Service Use Tax Act, the Service Occupation Tax Act, or the Retailers'
				Occupation Tax Act do not apply to the proceeds of sales of any diesel fuel
				containing more than 10% biodiesel or renewable diesel.
[35 ILCS
				105/3-5.1(f)]
7)
On and after April 1, 2026 and on
				or before November 30, 2030, the taxes imposed by
the Use Tax
				Act
, the Service Use Tax Act, the Service Occupation Tax Act, or the
				Retailers' Occupation Tax Act do not apply to the proceeds of sales of any
				diesel fuel containing more than 19% biodiesel or renewable diesel; except
				that, from December 1 of calendar years 2026, 2027, 2028, and 2029 through
				March 31 of the following calendar year, and from December 1, 2030 through
				December 31, 2030, the taxes imposed by
the Use Tax Act
, the
				Service Use Tax Act, the Service Occupation Tax Act, or the Retailers'
				Occupation Tax Act do not apply to the proceeds of sales of any diesel fuel
				containing more than 10% biodiesel or renewable diesel.
[35 ILCS
				105/3-5.1(g)]