I have never used the illuminated reticle but I am not sure I see their use as the target is not illuminated, i.e. a dark/shadowy object in the distance will still be dark/shadowy though the reticle itself will be easier to see. The objective is what gathers light and the bigger the objective, the more light "gathered". This is why people like the 50mm objective over the 40 and 33/32 mm ones. In low light conditions, the 50 mm will gather more light making the target appear more distinct/clear than will the smaller objectives.
I've been doing some more reading, and from what I gather the idea is to light up the crosshairs, where in low light conditions sometimes the crosshairs can blend in better to the target and/or background. It won't light up the target itself.
I called the Iowa DNR too, and they say illuminated recticles are OK, since they don't actually project a beam on to the target.
My nikon monarch ucc 3-9x40 has a red neck recticle illumination. If i tip the bill of my hat forward when looking through the scope the recticle turn the color of my hat. If i wear a blaze orange hat then my recticle turns blaze orange.