Illinois Exemptions from Requirements/Restrictions

Fleet User Fee Exemption

An annual user fee of $20 per vehicle is imposed on fleets with 10 or more vehicles in defined areas. Owners of state, county, or local government vehicles or electric vehicles are exempt from this fee. Fees are collected into the Alternate Fuels Fund. (Reference 415 Illinois Compiled Statutes 120/35)

Biodiesel Tax Exemption

Sales and use taxes apply to 80% of the proceeds from the sale of biodiesel-blended fuels containing between 1% and 10% biodiesel made between July 1, 2003, and December 31, 2013. However, if these taxes are ever imposed at a rate of 1.25%, then the tax on these biodiesel blends will apply to 100% of the proceeds of sales. These taxes do not apply to the proceeds from the sale of biodiesel blends containing more than 10% biodiesel. The taxes will apply to 100% of the proceeds from biodiesel sales made after December 31, 2013. (Reference 35 Illinois Compiled Statutes 120/2-10 and 105/3-10)

Ethanol Tax Exemption

Sales and use taxes do not apply to ethanol-blended fuels containing between 70% and 90% ethanol sold between July 1, 2003, and December 31, 2013. These taxes apply to 100% of the proceeds from sales made thereafter. (Reference 35 Illinois Compiled Statutes 120/2-10, 105/3-10, and 105/3-44)