SB2023 amends the Illinois Electricity Excise Tax Law to change how the state taxes electricity used at electric vehicle charging stations. Beginning July 1, 2025, the bill shifts the tax obligation from the individual driver or customer using the charger to the operator of the electric vehicle charging station. It also clarifies that a person who buys electricity at a charging station to charge an EV, or who receives that electricity for free, is not the taxpayer under the Act.
The bill further updates the statutory definition of “purchase price” so that, for EV charging stations, the taxable purchase price includes what the station operator pays its electricity supplier for power used to charge vehicles, but excludes what the operator collects from customers for that same electricity. It also revises related definitions so that an EV charging station operator is treated as a “purchaser” for purposes of the law, and it excludes such operators from the definition of “delivering supplier” beginning on the same date. The bill is effective immediately, but the EV charging tax changes take effect July 1, 2025.
Impact
If enacted, SB2023 would alter the administration of the Electricity Excise Tax Law by making EV charging station operators responsible for collecting and remitting the tax on electricity sold or provided for EV charging. This would affect the Department of Revenue, electric utilities and other delivering suppliers, charging network operators, and potentially businesses that provide charging as a service. It would also require conforming changes to tax reporting and registration rules for operators, including the possibility of self-assessing purchaser status.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of support or opposition from legislative debate. Based on the bill text, the measure appears to be a technical tax-structure adjustment aimed at aligning the tax with the EV charging business model rather than a broad policy change. The caption and drafting suggest a revenue administration bill focused on electric vehicles and charging infrastructure.
Contention
The main point of potential contention is the shift in tax liability from the end user to the charging station operator, which could be viewed as simplifying collection but also increasing compliance burdens for charging providers. Operators may be concerned about administrative costs, pricing effects, and whether the tax treatment is consistent with how electricity is sold at charging stations. Another possible issue is the distinction between electricity purchased for resale and electricity provided free or at a fee, which may raise questions about how charging networks, workplace chargers, and public charging stations are classified and taxed.
A bill for an act relating to the recycling of battery electric motor vehicles and plug-in hybrid electric motor vehicles, and making penalties applicable.(Formerly HSB 135.)
A bill for an act relating to the recycling of battery electric motor vehicles and plug-in hybrid electric motor vehicles, and making penalties applicable.(See HF 548.)