Utility Taxes  

Illinois imposes a tax on those in the business of selling, distributing, supplying, or furnishing electricity or natural gas for use or consumption.  The telephone tax is 7%.  The electricity tax is 5%, 0.32 cents per kilowatt-hour, or taxed at a declining graduated rate based on usage, whichever is lower.  Some local governments also collect utility taxes.

 Incentives:

• Illinois does not tax water and sewer utilities.
• Electricity and natural gas tax exemptions are available in Illinois Enterprise Zones (certain job creation criteria apply).