HB5444 104TH GENERAL ASSEMBLY

LRB104 17892 HLH 31328 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5444

Introduced 2/13/2026, by Rep. Regan Deering

SYNOPSIS AS INTRODUCED:

35 ILCS 200/10-600
35 ILCS 200/10-720

Amends the Property Tax Code. In provisions concerning the valuation of wind energy devices, provides that, for taxable year 2027 and thereafter, the real property cost basis is $588,000 per megawatt of nameplate capacity (currently, $360,000 per megawatt of nameplate capacity). In provisions concerning the valuation of solar energy systems, provides that, for taxable year 2027 and thereafter, the real property cost basis is $446,000 per megawatt of nameplate capacity (currently, $218,000 per megawatt of nameplate capacity). Effective immediately.

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Property Tax Code is amended by changing Sections 10-600 and 10-720 as follows:

(35 ILCS 200/10-600)

Sec. 10-600. Definitions. For the purposes of this Division 18:

"Wind energy device" means any device, with a nameplate capacity of at least 0.5 megawatts, that is used in the process of converting kinetic energy from the wind to generate electric power for commercial sale.

"Real 2007 real property cost basis" excludes personal property but represents both the land and real property improvements of a wind energy device and means: (1) $360,000 per megawatt of nameplate capacity for taxable years prior to taxable year 2027; and (2) $588,000 per megawatt of nameplate capacity for taxable year 2027 and thereafter.

"Trending factor" means a number equal to the consumer price index (U.S. city average all items) published by the Bureau of Labor Statistics for the December immediately preceding the assessment date, divided by the consumer price index (U.S. city average all items) published by the Bureau of Labor Statistics for December 2006.

"Trended real property cost basis" means the 2007 real property cost basis multiplied by the trending factor.

"Allowance for physical depreciation" means (i) the actual age in years of the wind energy device on the assessment date divided by 25 years multiplied by (ii) the trended real property cost basis. The physical depreciation, however, may not reduce the value of the wind energy device to less than 30% of the trended real property cost basis.

(Source: P.A. 95-644, eff. 10-12-07.)

(35 ILCS 200/10-720)

Sec. 10-720. Definitions. For the purpose of this Division 20:

"Allowance for physical depreciation" means (i) the actual age in years of the commercial solar energy system on the assessment date divided by 25 years, multiplied by (ii) its trended real property cost basis. The physical depreciation, however, may not reduce the value of the commercial solar energy system to less than 30% of its trended real property cost basis.

"Commercial solar energy system" means any device or assembly of devices that (i) is ground installed and (ii) uses solar energy from the sun for generating electricity for the primary purpose of wholesale or retail sale and not primarily for consumption on the property on which the device or devices reside.

"Commercial solar energy system real property cost basis" means the owner of a commercial solar energy system's interest in the land within the project boundaries and real property improvements and shall be calculated at: (1) $218,000 per megawatt of nameplate capacity for taxable years prior to taxable year 2027; and (2) $446,000 per megawatt of nameplate capacity for taxable year 2027 and thereafter. For the purposes of this Section, "nameplate capacity" has the same definition as found in Section 1-10 of the Illinois Power Agency Act.

"Ground installed" means the installation of a commercial solar energy system, with the primary purpose of solar energy generation for wholesale or retail sale, on a parcel or tract of land.

"Trended real property cost basis" means the commercial solar energy system real property cost basis multiplied by the trending factor.

"Trending factor" means a number equal to the Consumer Price Index (U.S. city average all items) published by the Bureau of Labor Statistics for the December immediately preceding the assessment date, divided by the Consumer Price Index (U.S. city average all items) published by the Bureau of Labor Statistics for December of 2017.

(Source: P.A. 100-781, eff. 8-10-18.)

Section 99. Effective date. This Act takes effect upon becoming law.