Ill. Admin. Code tit. 86, § 510.185 - Interdepartmental Transfers
a) The
distribution of electricity between the various departments of a taxpayer does
not result in any liability for tax under the Act, notwithstanding that one
department of the taxpayer receiving such electricity is, for accounting
purposes, charged with the value of the electricity by another department of
the same taxpayer distributing the electricity.
b) However, where electricity is distributed
to a separate corporation or legal entity for use or consumption and not for
resale, the taxpayer distributing the electricity is liable for tax.
c) It is immaterial that electricity so
distributed by a taxpayer is distributed to the taxpayer's wholly-owned
subsidiary, or that the two corporations may be wholly or partially under a
common ownership or management. The Department will not disregard separate
corporate entities in applying the Act.
Notes
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