Ill. Admin. Code tit. 86 § 510.185

Current through Register Vol. 48, No. 50, December 13, 2024

Section 510.185 - Interdepartmental Transfers

a) The distribution of electricity between the various departments of a taxpayer does not result in any liability for tax under the Act, notwithstanding that one department of the taxpayer receiving such electricity is, for accounting purposes, charged with the value of the electricity by another department of the same taxpayer distributing the electricity.

b) However, where electricity is distributed to a separate corporation or legal entity for use or consumption and not for resale, the taxpayer distributing the electricity is liable for tax.

c) It is immaterial that electricity so distributed by a taxpayer is distributed to the taxpayer's wholly-owned subsidiary, or that the two corporations may be wholly or partially under a common ownership or management. The Department will not disregard separate corporate entities in applying the Act.

Ill. Admin. Code tit. 86, § 510.185

Amended at 47 Ill. Reg. 18748, effective 11/28/2023