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Alcohol purchases for distilleries to be tax-exempt if used for sanitizer

CHICAGO (WREX) — With many Illinois-based distillers shifting operations to produce needed hand sanitizer during the COVID-19 outbreak, the distilleries are now getting assistance from the state.

The Illinois Department of Revenue (IDOR) is ensuring any alcohol purchases made for production of hand sanitizer be tax-exempt. Normally, distillers incur a tax liability based on the amount and strength of alcohol used in distillation. IDOR sent distillers guidance on how to claim a tax deduction on their alcohol purchases to remove any tax liability. 

“During this time of crisis, it is great to see Illinois taxpayers stepping up to help in so many ways,” said Illinois Department of Revenue Director David Harris.  “The Department of Revenue is pleased to help these distillers who have answered a call to service by volunteering to produce hand sanitizer, a product so urgently needed.  The Department will continue to take steps to help taxpayers have the financial flexibility to address needs due to this COVID-19 outbreak.”

Since the Governors’ Disaster Proclamation, IDOR has granted temporary sales tax relief to small and medium-sized restaurants and bars, extended the income tax deadline to July 15th, extended renewal deadlines for sales tax exemption holders, and offered taxpayers who owe estimated taxes an alternative way to calculate their liability. Although the tax deadline was extended, IDOR is still processing and issuing tax refunds in a timely manner to those expecting them.

Grant View Distillery in Rockford along with Kennay Farms in Rochelle, Blaum Brothers in Galena and Whiskey Acres in DeKalb County have all started making hand sanitizer during the pandemic.

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Andrew Carrigan

Andy Carrigan is the Social Media & Digital Content Manager at WREX. He joined the 13 WREX team as a photographer in 2016 after graduating from Northern Illinois University. He also been a producer and Assignment Editor at the station.

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