Franchise, Stock, and Utility

Franchise Taxes on Business Income in Illinois
Illinois imposes an annual franchise tax on both Illinois corporations and non-Illinois corporations for the privilege of doing business in the State. You calculate the corporation franchise tax by multiplying your corporation’s paid-in capital by the franchise tax rate of 0.1%. However, even if your corporation has no paid-in capital, you are still going to have to pay a minimum $25 franchise tax fee, annually. The maximum annual franchise tax is $1 million.

The franchise tax is paid with the required corporation annual report, along with a filing fee of $75.

Capital Stock Tax Rate
Capital Stock Tax Rate in Illinois is 0.100 with a maximum payment of $2,000,000. Both CST and CIT payments are required. 

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 telecommunications tax is 7 percent. The electricity tax is 5 percent of 0.32 cents per kilowatt hour, whichever is lower. The natural gas tax is 5 percent or 2.4 cents per therm, whichever is lower. Some local governments also collect utility taxes.

  • 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)

 

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