Illinois Tax Changes- November 2024
Week Of 11.11.2024
The Illinois Department of Commerce and Economic Opportunity has amended the Film Production Services Tax Credit Program rules, effective October 24, 2024, to reflect changes in the Illinois Film Production Services Tax Credit Act of 2008. These changes include:
- Capping qualified expenditures for above-the-line and below-the-line services provided by related parties.
- Excluding above-the-line salaries that exceed 40% of Illinois production spending.
- Requiring applicants to disclose related party transactions.
Additionally, Illinois law has been updated to expand the homestead exemption for disabled veterans. Effective July 1, 2024, property used as a qualified residence by a veteran who served in World War II is exempt from taxation regardless of the veteran's disability level. Veterans qualifying for this exemption do not need to reapply annually.
Finally, a new law, effective January 1, 2025, removes the statute of limitations for a certificate of error correcting an assessment to $1 when the property is used as a common area by a subdivision, association, or planned development.
Week Of 11.21.2024
Illinois Public Utilities Tax—Illinois amends gross charges definition.
The Illinois Department of Revenue amended regulation, 86 Ill. Admin. Code § 495.100, effective 11/04/2024, to clarify that telecommunications "gross charges" do not include any amounts added to a purchaser's bill because of a charge made pursuant to the tax imposed by the Telecommunications Excise Tax Act, the Public Utilities Act, the tax imposed by IRC § 4251; 911 surcharges; or the tax imposed by the Simplified Municipal Telecommunications Tax Act. Gross charges does not include charges to business enterprises certified under the Public Utilities Act, the Reimagining Energy and Vehicles in Illinois Act, or the Manufacturing Illinois Chips for Real Opportunity Act.
Illinois Public Utilities Tax—Illinois enacts gas revenue tax exemption regulations.
The Illinois Department of Revenue adopted regulations, 86 Ill. Admin. Code §§ 470.132 and 470.133, effective 11/04/2024, which exclude from gross receipts any charges added to customers' bills pursuant to the Public Utilities Act. A public utility is not allowed to charge customers, who are certified under the Reimagining Energy and Vehicles in Illinois Act or Manufacturing Illinois Chips for Real Opportunity Act, an additional charge to equal the total amount of tax imposed under the Gas Revenue Tax Act. The Department of Commerce and Economic Opportunity must certify a taxpayer for this exemption.
Illinois Sales and Use Tax Rates—Illinois sales tax rate change summary.
The Illinois Department of Revenue issued an informational bulletin to all retailers and servicepersons conducting business in taxing jurisdictions whose sales tax rate is changing, effective January 1, 2025. Some taxing jurisdictions have imposed a local sales tax or changed their local sales tax rate on general merchandise sales. The following taxes are affected: business district sales tax; home rule municipal sales tax; and non-home rule municipal sales tax. Retailers and servicepersons are advised to adjust their cash registers and computer programs so that the correct sales tax will be collected beginning January 1, 2025. The bulletin includes a chart of sales tax rate changes. (Illinois Dept. of Rev. Info. Bulletin No. FY 2025-12, 11/01/2024.)
Illinois Sales & Use Taxes—Illinois provides guidance on destination-based retailers' occupation tax.
The Illinois Department of Revenue issued an informational bulletin to retailers filing Form ST-1 (Sales and Use Tax and E911 Surcharge Return) which provides, effective January 1, 2025, that retailers previously obligated to collect and remit Illinois use tax on retail sales sourced outside of Illinois, and made to Illinois customers, are not subject to destination-based retailers' occupation tax. This change affects retailers with any kind of physical presence in Illinois who make sales that are sourced outside of Illinois to Illinois customers. For destination-based sales, retailers must register a tax site for each jurisdiction (i.e., city or county) where it has made a sale or plans to make sales. For out-of-state retailers, the Department will change their registration status from use tax to retailers' occupation tax, if applicable. Illinois retailers should already be registered to remit retailers' occupation tax. Marketplace facilitators must ensure they collect and remit the proper retailers' occupation tax for sales on behalf of the retailers. (Illinois Dept. of Rev. Info. Bulletin No. FY 2025-10, 11/01/2024.)
Illinois Sales & Use Taxes—Illinois monthly cap on retailers’ discount for certain vehicle sales.
The Illinois Department of Revenue issued an informational bulletin to all Illinois retailers filing Form ST-556 (Sales Tax Transaction Return) and Form ST-556-LSE (Transaction Return for Leases) regarding the monthly cap on retailers' allowance for certain transaction returns due on or after January 1, 2025. For vehicle sales with a delivery date on or after December 12, 2024, which corresponds to returns due on or after January 1, 2025, the retailers' allowance or discount is limited to $1,000 per month. When filing Forms ST-556 and ST-556-LSE, retailers will no longer be able to reduce the tax remittance by the discount amount. The department will calculate the discount through a monthly reconciliation process, after which the retailer's allowance will be issued. If amended returns are filed and the tax due increases, the discount may still not exceed $1,000 per month and is allowed only if the increased tax reported was paid by the due date of the original return. (Illinois Dept. of Rev. Info. Bulletin No. FY 2025-11, 11/01/2024.)
Illinois Sales & Use Taxes—Illinois sales tax rate change summary.
The Illinois Department of Revenue issued an informational bulletin to all retailers and servicepersons conducting business in taxing jurisdictions whose sales tax rate is changing, effective January 1, 2025. Some taxing jurisdictions have imposed a local sales tax or changed their local sales tax rate on general merchandise sales. The following taxes are affected: business district sales tax; home rule municipal sales tax; and non-home rule municipal sales tax. Retailers and servicepersons are advised to adjust their cash registers and computer programs so that the correct sales tax will be collected beginning January 1, 2025. The bulletin includes a chart of sales tax rate changes. (Illinois Dept. of Rev. Info. Bulletin No. FY 2025-12, 11/01/2024.)
Illinois Sales & Use Taxes—Illinois enacts exemption regulation for building materials.
The Illinois Department of Revenue enacted regulations, 86 Ill. Admin. Code §§ 130.1958 and 130.1959, effective 11/04/2024, providing that each retailer who makes a sale of building materials that will be incorporated into real estate in a qualified facility, for which a certification of exemption has been issued by the Department of Economic Opportunity (DCEO) under the Manufacturing Illinois Chips for Real Opportunity, is exempt from state and local retailers' occupation taxes. Additionally, sales of building materials that will be incorporated into a REV Illinois Project, for which a certificate of exemption has been issued by the DCEO under the Reimagining Energy and Vehicles in Illinois Act, are exempt from state and local retailers' occupation taxes. REV Illinois projects include electric vehicle manufacturers, electric vehicle component parts manufacturers, or renewable energy manufacturers.
Week Of 11.11.2024
Illinois Corporate Income Tax—Illinois amends film production services tax credit regulations.
The Illinois Department of Commerce and Economic Opportunity has amended Film Production Services Tax Credit Program rules (14 Ill. Admin. Code § 528.20 and § 528.70, effective 10/24/2024) to incorporate statutory changes made to the Illinois Film Production Services Tax Credit Act of 2008. The amendments cap the qualified expenditures for above the line and below the line provided by related parties and excludes any above the line salaries that exceed 40% of Illinois production spending. The amendments also require applicants to disclose related party transactions.
Illinois Credits and Incentives—Illinois amends film production services tax credit regulations.
The Illinois Department of Commerce and Economic Opportunity has amended Film Production Services Tax Credit Program rules (14 Ill. Admin. Code § 528.20 and § 528.70, effective 10/24/2024) to incorporate statutory changes made to the Illinois Film Production Services Tax Credit Act of 2008. The amendments cap the qualified expenditures for above the line and below the line provided by related parties and excludes any above the line salaries that exceed 40% of Illinois production spending. The amendments also require applicants to disclose related party transactions.
Illinois Property Tax—Illinois expands homestead exemption for disabled veterans.
L. 2024, H612 (P.A. 103-0596), effective 07/01/2024, provides that, for taxable years on or after 2024, property that is used as a qualified residence by a veteran who was a member of the United States Armed Forces during World War II is exempt from taxation regardless of the veteran's level of disability. A veteran that qualifies for the homestead exemption because of their service in World War II does not need to reapply on an annual basis.
Illinois Property Tax—Illinois property tax certificate of error.
L. 2024, H4125 (P.A. 103-0662), effective 01/01/2025, provides that the statute of limitations for a certificate of error does not apply to a certification of error correcting an assessment to $1 when the property is used as a common area by a subdivision, association, or planned development.
Week Of 11.21.2024
Illinois Public Utilities Tax—Illinois amends gross charges definition.
The Illinois Department of Revenue amended regulation, 86 Ill. Admin. Code § 495.100, effective 11/04/2024, to clarify that telecommunications "gross charges" do not include any amounts added to a purchaser's bill because of a charge made pursuant to the tax imposed by the Telecommunications Excise Tax Act, the Public Utilities Act, the tax imposed by IRC § 4251; 911 surcharges; or the tax imposed by the Simplified Municipal Telecommunications Tax Act. Gross charges does not include charges to business enterprises certified under the Public Utilities Act, the Reimagining Energy and Vehicles in Illinois Act, or the Manufacturing Illinois Chips for Real Opportunity Act.
Illinois Public Utilities Tax—Illinois enacts gas revenue tax exemption regulations.
The Illinois Department of Revenue adopted regulations, 86 Ill. Admin. Code §§ 470.132 and 470.133, effective 11/04/2024, which exclude from gross receipts any charges added to customers' bills pursuant to the Public Utilities Act. A public utility is not allowed to charge customers, who are certified under the Reimagining Energy and Vehicles in Illinois Act or Manufacturing Illinois Chips for Real Opportunity Act, an additional charge to equal the total amount of tax imposed under the Gas Revenue Tax Act. The Department of Commerce and Economic Opportunity must certify a taxpayer for this exemption.
Illinois Sales and Use Tax Rates—Illinois sales tax rate change summary.
The Illinois Department of Revenue issued an informational bulletin to all retailers and servicepersons conducting business in taxing jurisdictions whose sales tax rate is changing, effective January 1, 2025. Some taxing jurisdictions have imposed a local sales tax or changed their local sales tax rate on general merchandise sales. The following taxes are affected: business district sales tax; home rule municipal sales tax; and non-home rule municipal sales tax. Retailers and servicepersons are advised to adjust their cash registers and computer programs so that the correct sales tax will be collected beginning January 1, 2025. The bulletin includes a chart of sales tax rate changes. (Illinois Dept. of Rev. Info. Bulletin No. FY 2025-12, 11/01/2024.)
Illinois Sales & Use Taxes—Illinois provides guidance on destination-based retailers' occupation tax.
The Illinois Department of Revenue issued an informational bulletin to retailers filing Form ST-1 (Sales and Use Tax and E911 Surcharge Return) which provides, effective January 1, 2025, that retailers previously obligated to collect and remit Illinois use tax on retail sales sourced outside of Illinois, and made to Illinois customers, are not subject to destination-based retailers' occupation tax. This change affects retailers with any kind of physical presence in Illinois who make sales that are sourced outside of Illinois to Illinois customers. For destination-based sales, retailers must register a tax site for each jurisdiction (i.e., city or county) where it has made a sale or plans to make sales. For out-of-state retailers, the Department will change their registration status from use tax to retailers' occupation tax, if applicable. Illinois retailers should already be registered to remit retailers' occupation tax. Marketplace facilitators must ensure they collect and remit the proper retailers' occupation tax for sales on behalf of the retailers. (Illinois Dept. of Rev. Info. Bulletin No. FY 2025-10, 11/01/2024.)
Illinois Sales & Use Taxes—Illinois monthly cap on retailers’ discount for certain vehicle sales.
The Illinois Department of Revenue issued an informational bulletin to all Illinois retailers filing Form ST-556 (Sales Tax Transaction Return) and Form ST-556-LSE (Transaction Return for Leases) regarding the monthly cap on retailers' allowance for certain transaction returns due on or after January 1, 2025. For vehicle sales with a delivery date on or after December 12, 2024, which corresponds to returns due on or after January 1, 2025, the retailers' allowance or discount is limited to $1,000 per month. When filing Forms ST-556 and ST-556-LSE, retailers will no longer be able to reduce the tax remittance by the discount amount. The department will calculate the discount through a monthly reconciliation process, after which the retailer's allowance will be issued. If amended returns are filed and the tax due increases, the discount may still not exceed $1,000 per month and is allowed only if the increased tax reported was paid by the due date of the original return. (Illinois Dept. of Rev. Info. Bulletin No. FY 2025-11, 11/01/2024.)
Illinois Sales & Use Taxes—Illinois sales tax rate change summary.
The Illinois Department of Revenue issued an informational bulletin to all retailers and servicepersons conducting business in taxing jurisdictions whose sales tax rate is changing, effective January 1, 2025. Some taxing jurisdictions have imposed a local sales tax or changed their local sales tax rate on general merchandise sales. The following taxes are affected: business district sales tax; home rule municipal sales tax; and non-home rule municipal sales tax. Retailers and servicepersons are advised to adjust their cash registers and computer programs so that the correct sales tax will be collected beginning January 1, 2025. The bulletin includes a chart of sales tax rate changes. (Illinois Dept. of Rev. Info. Bulletin No. FY 2025-12, 11/01/2024.)
Illinois Sales & Use Taxes—Illinois enacts exemption regulation for building materials.
The Illinois Department of Revenue enacted regulations, 86 Ill. Admin. Code §§ 130.1958 and 130.1959, effective 11/04/2024, providing that each retailer who makes a sale of building materials that will be incorporated into real estate in a qualified facility, for which a certification of exemption has been issued by the Department of Economic Opportunity (DCEO) under the Manufacturing Illinois Chips for Real Opportunity, is exempt from state and local retailers' occupation taxes. Additionally, sales of building materials that will be incorporated into a REV Illinois Project, for which a certificate of exemption has been issued by the DCEO under the Reimagining Energy and Vehicles in Illinois Act, are exempt from state and local retailers' occupation taxes. REV Illinois projects include electric vehicle manufacturers, electric vehicle component parts manufacturers, or renewable energy manufacturers.
Week Of 11.11.2024
Illinois Corporate Income Tax—Illinois amends film production services tax credit regulations.
The Illinois Department of Commerce and Economic Opportunity has amended Film Production Services Tax Credit Program rules (14 Ill. Admin. Code § 528.20 and § 528.70, effective 10/24/2024) to incorporate statutory changes made to the Illinois Film Production Services Tax Credit Act of 2008. The amendments cap the qualified expenditures for above the line and below the line provided by related parties and excludes any above the line salaries that exceed 40% of Illinois production spending. The amendments also require applicants to disclose related party transactions.
Illinois Credits and Incentives—Illinois amends film production services tax credit regulations.
The Illinois Department of Commerce and Economic Opportunity has amended Film Production Services Tax Credit Program rules (14 Ill. Admin. Code § 528.20 and § 528.70, effective 10/24/2024) to incorporate statutory changes made to the Illinois Film Production Services Tax Credit Act of 2008. The amendments cap the qualified expenditures for above the line and below the line provided by related parties and excludes any above the line salaries that exceed 40% of Illinois production spending. The amendments also require applicants to disclose related party transactions.
Illinois Property Tax—Illinois expands homestead exemption for disabled veterans.
L. 2024, H612 (P.A. 103-0596), effective 07/01/2024, provides that, for taxable years on or after 2024, property that is used as a qualified residence by a veteran who was a member of the United States Armed Forces during World War II is exempt from taxation regardless of the veteran's level of disability. A veteran that qualifies for the homestead exemption because of their service in World War II does not need to reapply on an annual basis.
Illinois Property Tax—Illinois property tax certificate of error.
L. 2024, H4125 (P.A. 103-0662), effective 01/01/2025, provides that the statute of limitations for a certificate of error does not apply to a certification of error correcting an assessment to $1 when the property is used as a common area by a subdivision, association, or planned development.