Bill Text: IL SB3651 | 2023-2024 | 103rd General Assembly | Introduced

---

Bill Title: Creates the Electric Vehicle Charging Tax Act. Provides that a tax is imposed on the privilege of engaging in business as an electric vehicle power provider in this State. Provides that, from January 1, 2025 through January 1, 2026, the rate of tax shall be $0.06 per kilowatt hour of electric vehicle power. Provides that the rate of tax shall be increased on January 1 of each year by the percentage increase, if any, in the Consumer Price Index. Amends the Public-Private Partnerships for Transportation Act. Creates a dynamic wireless electric vehicle charging pilot program. Amends the Illinois Administrative Procedure Act to provide for emergency rulemaking. Effective January 1, 2025.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-02-09 - Referred to Assignments [SB3651 Detail]

Download: Illinois-2023-SB3651-Introduced.html

---

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3651 Introduced 2/9/2024, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED:
New Act
630 ILCS 5/10
630 ILCS 5/36 new
5 ILCS 100/5-45.55 new
5 ILCS 100/5-45.56 new
30 ILCS 105/5.1015 new
Creates the Electric Vehicle Charging Tax Act. Provides that a tax is imposed on the privilege of engaging in business as an electric vehicle power provider in this State. Provides that, from January 1, 2025 through January 1, 2026, the rate of tax shall be $0.06 per kilowatt hour of electric vehicle power. Provides that the rate of tax shall be increased on January 1 of each year by the percentage increase, if any, in the Consumer Price Index. Amends the Public-Private Partnerships for Transportation Act. Creates a dynamic wireless electric vehicle charging pilot program. Amends the Illinois Administrative Procedure Act to provide for emergency rulemaking. Effective January 1, 2025.
LRB103 37107 HLH 69610 b
A BILL FOR
SB3651 LRB103 37107 HLH 69610 b
AN ACT concerning electric vehicles.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Electric Vehicle Charging Tax Act.
Section 5. Definitions. As used in this Act:
"Consumer Price Index" means the index published by the
Bureau of Labor Statistics of the United States Department of
Labor that measures the average change in prices of goods and
services purchased by all urban consumers, United States city
average, all items, 1982-84 = 100.
"Department" means the Department of Revenue.
"Distribute" means to deliver or transfer electric power
into the battery or other energy storage device of an electric
vehicle at a location in this State.
"Electric vehicle" means any motor vehicle of the first
division that is propelled by an electric engine and does not
use motor fuel.
"Electric vehicle charging station" means any place
accessible to general public vehicular traffic, other than a
residence, where electric power may be used to charge a
battery or other storage device of a licensed electric
vehicle.

SB3651 - 2 - LRB103 37107 HLH 69610 b
"Electric vehicle power" means electrical energy that is
distributed into the battery or other energy storage device of
an electric vehicle and that is used to power the vehicle.
"Electric vehicle power provider" means a person who owns
or leases an electric vehicle charging station.
"Person" means any natural individual, firm, trust,
estate, partnership, association, joint-stock company, joint
venture, corporation, limited liability company, or a
receiver, trustee, guardian, or other representative appointed
by order of any court.
Section 10. Imposition of tax.
(a) Beginning on January 1, 2025, a tax is imposed on the
privilege of engaging in business as an electric vehicle power
provider in this State. From January 1, 2025 through January
1, 2026, the tax shall be imposed at the rate of $0.06 per
kilowatt hour of electric vehicle power that is distributed in
this State by the electric vehicle power provider for the
purpose of charging an electric vehicle. On January 1, 2026,
and on January 1 of each subsequent year, the rate of tax
imposed in this paragraph shall be increased by an amount
equal to the percentage increase, if any, in the Consumer
Price Index for the 12 months ending in September of the year
in which the increase takes place. The rate shall be rounded to
the nearest one-tenth of one cent.
(b) The tax shall be added to the selling price charged by

SB3651 - 3 - LRB103 37107 HLH 69610 b
the electric vehicle power provider at the electric vehicle
charging station on electric vehicle power sold in this State.
If there is no selling price at the charging station, then the
electric vehicle power provider shall be responsible for
paying the tax on the electric power distributed by the
electric vehicle charging station.
(c) The tax imposed shall be paid by the electric vehicle
power provider to the Department. The electric vehicle power
provider is liable for the payment of the electric vehicle
power tax.
Section 15. Collection of tax. The tax imposed by this Act
shall be collected from the purchaser by the electric vehicle
power provider at the rate stated in Section 10 and shall be
remitted to the Department as provided in this Act. All
charges for electric vehicle power from an electric vehicle
charging station are presumed subject to tax collection.
Electric vehicle power providers shall collect the tax from
purchasers by adding the tax to the amount of the purchase
price received from the purchaser. The tax imposed by the Act
shall, when collected, be stated as a distinct item separate
and apart from the purchase price of the service subject to tax
under this Act. However, where it is not possible to state the
tax separately the Department may, by rule, exempt those
purchases from this requirement so long as purchasers are
notified by language on the invoice or notified by a sign that

SB3651 - 4 - LRB103 37107 HLH 69610 b
the tax is included in the purchase price.
The proceeds from the tax collected under this Act shall
be deposited into the Electric Vehicle Charging Tax Fund.
Section 20. Filing of returns. On or before the last day of
each calendar month, each electric vehicle power provider that
is engaged in the business of providing electric vehicle power
during the preceding calendar month shall file a return with
the Department, stating:
(1) the name of the electric vehicle power provider;
(2) the address of the electric vehicle power
provider's principal place of business and, if applicable,
the address of the principal place of business from which
the electric vehicle power provider provides electric
vehicle power in this State;
(3) the total amount of kilowatt hours distributed by
the electric vehicle provider in the preceding calendar
month;
(4) any deductions from the tax imposed by this Act to
which the electric vehicle power provider is entitled;
(5) the total amount of receipts received by the
electric vehicle power provider during the preceding
calendar month from the distribution of electric vehicle
power;
(6) the amount of tax due; and
(7) such other reasonable information as the

SB3651 - 5 - LRB103 37107 HLH 69610 b
Department may require.
If an electric vehicle power provider ceases to engage in
the kind of business that makes it responsible for filing
returns under this Act, then that electric vehicle power
provider shall file a final return under this Act with the
Department on or before the last day of the month after
discontinuing that business.
All returns required to be filed and payments required to
be made under this Act shall be filed and made by electronic
means. Taxpayers who demonstrate hardship in filing or paying
electronically may petition the Department to waive the
electronic filing or payment requirement, or both. The
Department may require a separate return for the tax under
this Act or combine the return for the tax under this Act with
the return for other taxes.
If the same person has more than one business registered
with the Department under separate registrations under this
Act, that person shall not file each return that is due as a
single return covering all such registered businesses but
shall file separate returns for each such registered business.
If the electric vehicle power provider is a corporation,
then the return filed on behalf of that corporation shall be
signed by at least one of the following:
(1) the president of the corporation;
(2) the vice-president of the corporation;
(3) the secretary of the corporation;

SB3651 - 6 - LRB103 37107 HLH 69610 b
(4) the treasurer of the corporation; or
(5) a properly accredited agent of the corporation.
An electric vehicle power provider that files a return
under this Act shall, at the time of filing the return, pay to
the Department the amount of tax imposed by this Act, less a
discount of 1.75%, not to exceed $1,000 per month, which is
allowed to reimburse the electric vehicle power provider for
the expenses incurred in keeping records, preparing and filing
returns, remitting the tax, and supplying data to the
Department on request.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, as shown on an original
return, the Department may authorize the taxpayer to credit
such excess payment against liability subsequently to be
remitted to the Department under this Act, in accordance with
reasonable rules adopted by the Department. If the Department
subsequently determines that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's
discount shall be reduced by an amount equal to the difference
between the discount as applied to the credit taken and that
actually due, and that taxpayer shall be liable for penalties
and interest on such difference.
Section 25. Registration of electric vehicle power
providers.
(a) A person who engages in business as an electric

SB3651 - 7 - LRB103 37107 HLH 69610 b
vehicle power provider in this State shall register with the
Department. Application for a certificate of registration
shall be made to the Department, by electronic means, in the
form and manner prescribed by the Department and shall contain
any reasonable information the Department may require. Upon
receipt of the application for a certificate of registration
in proper form and manner, the Department shall issue to the
applicant a certificate of registration. Electric vehicle
power providers who demonstrate that they do not have access
to the Internet or demonstrate hardship in applying
electronically may petition the Department to waive the
electronic application requirements.
(b) The Department may refuse to issue or reissue a
certificate of registration to any applicant for the reasons
set forth in Section 2505-380 of the Department of Revenue Law
of the Civil Administrative Code of Illinois.
(c) Any person aggrieved by any decision of the Department
under this Section may, within 20 days after notice of such
decision, protest and request a hearing, whereupon the
Department shall give notice to such person of the time and
place fixed for such hearing and shall hold a hearing in
conformity with the provisions of this Act and then issue its
final administrative decision in the matter to such person. In
the absence of such a protest within 20 days, the Department's
decision shall become final without any further determination
being made or notice given.

SB3651 - 8 - LRB103 37107 HLH 69610 b
Section 30. Revocation of certificate of registration.
(a) The Department may, after notice and a hearing as
provided in this Act, revoke the certificate of registration
of an electric vehicle power provider who violates any of the
provisions of this Act or any rule adopted under this Act.
Before revocation of a certificate of registration, the
Department shall, within 90 days after noncompliance and at
least 7 days prior to the date of the hearing, give the
electric vehicle power provider so accused notice in writing
of the charge against him or her, and on the date designated
shall conduct a hearing upon this matter. The lapse of such
90-day period shall not preclude the Department from
conducting revocation proceedings at a later date if
necessary. Any hearing held under this Section shall be
conducted by the Director or by any officer or employee of the
Department designated in writing by the Director.
(b) The Department may revoke a certificate of
registration for the reasons set forth in Section 2505-380 of
the Department of Revenue Law of the Civil Administrative Code
of Illinois.
(c) Upon the hearing of any such proceeding, the Director
or any officer or employee of the Department designated in
writing by the Director may administer oaths, and the
Department may procure by its subpoena the attendance of
witnesses and, by its subpoena duces tecum, the production of

SB3651 - 9 - LRB103 37107 HLH 69610 b
relevant books and papers. Any circuit court, upon application
either of the electric vehicle power provider or of the
Department, may, by order duly entered, require the attendance
of witnesses and the production of relevant books and papers
before the Department in any hearing relating to the
revocation of certificates of registration. Upon refusal or
neglect to obey the order of the court, the court may compel
obedience with the order by proceedings for contempt.
(d) The Department may, by application to any circuit
court, obtain an injunction requiring any person who engages
in business as an electric vehicle power provider under this
Act to obtain a certificate of registration. Upon refusal or
neglect to obey the order of the court, the court may compel
obedience by proceedings for contempt.
Section 35. Electric Vehicle Charging Tax Fund; creation;
distribution of proceeds. The Electric Vehicle Charging Tax
Fund is hereby created as a special fund in the State treasury.
Moneys in the Fund shall be used as provided in this Section:
(1) 80% of the moneys in the Electric Vehicle Charging
Tax Fund shall be transferred into the Road Fund and shall
be used for highway maintenance, highway construction,
bridge repair, congestion relief, and other highway needs;
(2) 20% of the moneys in the Electric Vehicle Charging
Tax Fund shall be used for projects related to public
transportation capital needs in the State; of that 20%:

SB3651 - 10 - LRB103 37107 HLH 69610 b
(A) 90% shall be transferred to the Regional
Transportation Authority Capital Improvement Fund for
use by the Regional Transportation Authority; and
(B) 10% shall be transferred to the Downstate Mass
Transportation Capital Improvement Fund to be used by
local mass transit districts other than the Regional
Transportation Authority.
Section 900. The Public-Private Partnerships for
Transportation Act is amended by changing Section 10 and by
adding Section 36 as follows:
(630 ILCS 5/10)
Sec. 10. Definitions. As used in this Act:
"Approved proposal" means the proposal that is approved by
the responsible public entity pursuant to subsection (j) of
Section 20 of this Act.
"Approved proposer" means the private entity whose
proposal is the approved proposal.
"Authority" means the Illinois State Toll Highway
Authority.
"Contractor" means a private entity that has entered into
a public-private agreement with the responsible public entity
to provide services to or on behalf of the responsible public
entity.
"Department" means the Illinois Department of

SB3651 - 11 - LRB103 37107 HLH 69610 b
Transportation.
"Design-build agreement" means the agreement between the
selected private entity and the responsible public entity
under which the selected private entity agrees to furnish
design, construction, and related services for a
transportation facility under this Act.
"Develop" or "development" means to do one or more of the
following: plan, design, develop, lease, acquire, install,
construct, reconstruct, rehabilitate, extend, or expand.
"Dynamic wireless charging" means electric vehicle
charging by inductive charging, which allows electric vehicles
to charge while in motion.
"Electric vehicle" means a motor vehicle of the first
division that is propelled by an electric engine and does not
use motor fuel.
"Maintain" or "maintenance" includes ordinary maintenance,
repair, rehabilitation, capital maintenance, maintenance
replacement, and any other categories of maintenance that may
be designated by the responsible public entity.
"Operate" or "operation" means to do one or more of the
following: maintain, improve, equip, modify, or otherwise
operate.
"Private entity" means any combination of one or more
individuals, corporations, general partnerships, limited
liability companies, limited partnerships, joint ventures,
business trusts, nonprofit entities, or other business

SB3651 - 12 - LRB103 37107 HLH 69610 b
entities that are parties to a proposal for a transportation
project or an agreement related to a transportation project. A
public agency may provide services to a contractor as a
subcontractor or subconsultant without affecting the private
status of the private entity and the ability to enter into a
public-private agreement. A transportation agency is not a
private entity.
"Proposal" means all materials and documents prepared by
or on behalf of a private entity relating to the proposed
development, financing, or operation of a transportation
facility as a transportation project.
"Proposer" means a private entity that has submitted an
unsolicited proposal for a public-private agreement to a
responsible public entity under this Act or a proposal or
statement of qualifications for a public-private agreement in
response to a request for proposals or a request for
qualifications issued by a responsible public entity under
this Act.
"Public-private agreement" means the public-private
agreement between the contractor and the responsible public
entity relating to one or more of the development, financing,
or operation of a transportation project that is entered into
under this Act.
"Request for information" means all materials and
documents prepared by or on behalf of the responsible public
entity to solicit information from private entities with

SB3651 - 13 - LRB103 37107 HLH 69610 b
respect to transportation projects.
"Request for proposals" means all materials and documents
prepared by or on behalf of the responsible public entity to
solicit proposals from private entities to enter into a
public-private agreement.
"Request for qualifications" means all materials and
documents prepared by or on behalf of the responsible public
entity to solicit statements of qualification from private
entities to enter into a public-private agreement.
"Responsible public entity" means the Department of
Transportation, the Illinois State Toll Highway Authority.
"Revenues" means all revenues, including any combination
of: income; earnings and interest; user fees; lease payments;
allocations; federal, State, and local appropriations, grants,
loans, lines of credit, and credit guarantees; bond proceeds;
equity investments; service payments; or other receipts;
arising out of or in connection with a transportation project,
including the development, financing, and operation of a
transportation project. The term includes money received as
grants, loans, lines of credit, credit guarantees, or
otherwise in aid of a transportation project from the federal
government, the State, a unit of local government, or any
agency or instrumentality of the federal government, the
State, or a unit of local government.
"Shortlist" means the process by which a responsible
public entity will review, evaluate, and rank statements of

SB3651 - 14 - LRB103 37107 HLH 69610 b
qualifications submitted in response to a request for
qualifications and then identify the proposers who are
eligible to submit a detailed proposal in response to a
request for proposals. The identified proposers constitute the
shortlist for the transportation project to which the request
for proposals relates.
"Transportation agency" means (i) the Department or (ii)
the Authority.
"Transportation facility" means any new or existing road,
highway, toll highway, bridge, tunnel, intermodal facility,
intercity or high-speed passenger rail, or other
transportation facility or infrastructure, excluding airports,
under the jurisdiction of a responsible public entity, except
those facilities for the Illiana Expressway. The term
"transportation facility" may refer to one or more
transportation facilities that are proposed to be developed or
operated as part of a single transportation project.
"Transportation project" or "project" means any or the
combination of the design, development, construction,
financing, or operation with respect to all or a portion of any
transportation facility under the jurisdiction of the
responsible public entity, except those facilities for the
Illiana Expressway, undertaken pursuant to this Act.
"Unit of local government" has the meaning ascribed to
that term in Article VII, Section 1 of the Constitution of the
State of Illinois and also means any unit designated as a

SB3651 - 15 - LRB103 37107 HLH 69610 b
municipal corporation.
"Unsolicited proposal" means a written proposal that is
submitted to a responsible public entity on the initiative of
the private sector entity or entities for the purpose of
developing a partnership, and that is not in response to a
formal or informal request issued by a responsible public
entity.
"User fees" or "tolls" means the rates, tolls, fees, or
other charges imposed by the contractor for use of all or a
portion of a transportation project under a public-private
agreement.
(Source: P.A. 103-570, eff. 1-1-24.)
(630 ILCS 5/36 new)
Sec. 36. Dynamic wireless electric vehicle charging pilot
program.
(a) Any transportation project undertaken under this Act
that includes the design, development, construction, or
reconstruction of 20 lane miles or more of a roadway is
required to include the construction of one lane mile of
dynamic wireless electric vehicle charging within the roadway.
The number of land miles shall be calculated by
multiplying the number of lanes of roadway by the length of the
project.
(b) The contractor shall design, fund, evaluate, iterate,
test, and implement dynamic vehicle charging along a one-mile

SB3651 - 16 - LRB103 37107 HLH 69610 b
stretch of roadway. This will serve as a pilot program for
Illinois. The program shall focus on nondisruptive designs
that are compatible with existing infrastructure. Dynamic
wireless charging lanes shall be compatible with the entire
range of electric vehicles, including passenger, electric
transit buses, fleet vehicles, and light-duty, medium-duty,
and heavy-duty vehicles. The contractor shall consider the
performance, safety, electromagnetic compatibility, and
interoperability in the development of the dynamic wireless
charging lane.
(c) The contractor shall work closely with the responsible
public agency and the Department throughout the design process
and upon implementation to ensure smooth execution of the
technology and appropriate communication to the traveling
public.
(d) After the dynamic wireless charging lane has been in
operation for one year, the contractor shall work with the
Department and responsible public agency to evaluate the
success, failure, and safety of the technology. Special
consideration shall be given to the operation of dynamic
vehicle charging in a variety of weather conditions and road
maintenance activities.
Section 905. The Illinois Administrative Procedure Act is
amended by adding Sections 5-45.55 and 5-45.56 as follows:

SB3651 - 17 - LRB103 37107 HLH 69610 b
(5 ILCS 100/5-45.55 new)
Sec. 5-45.55. Emergency rulemaking; Electric Vehicle
Charging Tax Act. To provide for the expeditious and timely
implementation of the Electric Vehicle Charging Tax Act,
emergency rules implementing the Electric Vehicle Charging Tax
Act may be adopted in accordance with Section 5-45 by the
Department of Revenue. The adoption of emergency rules
authorized by Section 5-45 and this Section is deemed to be
necessary for the public interest, safety, and welfare.
This Section is repealed one year after the effective date
of this amendatory Act of the 103rd General Assembly.
(5 ILCS 100/5-45.56 new)
Sec. 5-45.56. Emergency rulemaking; dynamic wireless
electric vehicle charging pilot program. To provide for the
expeditious and timely implementation of the dynamic wireless
electric vehicle charging pilot program established in Section
36 of the Public-Private Partnerships for Transportation Act,
emergency rules implementing that program may be adopted in
accordance with Section 5-45 by the Department of
Transportation. The adoption of emergency rules authorized by
Section 5-45 and this Section is deemed to be necessary for the
public interest, safety, and welfare.
This Section is repealed one year after the effective date
of this amendatory Act of the 103rd General Assembly.

SB3651 - 18 - LRB103 37107 HLH 69610 b
Section 910. The State Finance Act is amended by adding
Section 5.1015 as follows:
(30 ILCS 105/5.1015 new)
Sec. 5.1015. The Electric Vehicle Charging Tax Fund.