Illinois Expands Manufacturing Exemptions and Increases Gasohol Tax

Illinois- Effective July 1, 2017, there were law changes for sales and use taxes including exemptions for graphic arts machinery & equipment and increased taxes for gasohol.  There are also extended exemptions for some ethanol and biodiesel fuel sales.

There will now be a 100% sales tax, service occupation tax, use tax, and service use tax for Gasohol.  Previously, the requirement was for only 80% sales taxes (Ex. 80% of 8.25 is 6.6).  Exemptions for ethanol and biodiesel fuels sales consist of 100% exemptions for majority ethanol fuel, 100% exemptions for biodiesel with more than 10% but no more than 99% biodiesel.

The sales of graphic arts machinery and equipment are now included in manufacturing exemptions for sales, service occupation, use, and service use tax. There is an extension until December 31st, 2023 for sales, service occupation, use, and service use taxes for majority blended biodiesel and ethanol blends.

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