| ||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
1 | AN ACT concerning revenue.
| |||||||||||||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| |||||||||||||||||||||||||||||||||||
3 | represented in the General Assembly:
| |||||||||||||||||||||||||||||||||||
4 | Section 5. The Property Tax Code is amended by changing | |||||||||||||||||||||||||||||||||||
5 | Section 10-5 and by adding Division 20 of Article 10 as | |||||||||||||||||||||||||||||||||||
6 | follows:
| |||||||||||||||||||||||||||||||||||
7 | (35 ILCS 200/10-5)
| |||||||||||||||||||||||||||||||||||
8 | Sec. 10-5. Solar energy systems; definitions. It is the | |||||||||||||||||||||||||||||||||||
9 | policy of this
State that the use of solar energy systems | |||||||||||||||||||||||||||||||||||
10 | should be encouraged because they
conserve nonrenewable | |||||||||||||||||||||||||||||||||||
11 | resources, reduce pollution and promote the health and
| |||||||||||||||||||||||||||||||||||
12 | well-being of the people of this State, and should be valued in | |||||||||||||||||||||||||||||||||||
13 | relation to
these benefits.
| |||||||||||||||||||||||||||||||||||
14 | (a) "Solar energy" means radiant energy received from
the | |||||||||||||||||||||||||||||||||||
15 | sun at wave lengths suitable for heat transfer, photosynthetic | |||||||||||||||||||||||||||||||||||
16 | use,
or photovoltaic use.
| |||||||||||||||||||||||||||||||||||
17 | (b) "Solar collector" means
| |||||||||||||||||||||||||||||||||||
18 | (1) An assembly, structure, or design, including | |||||||||||||||||||||||||||||||||||
19 | passive elements,
used for gathering, concentrating, or | |||||||||||||||||||||||||||||||||||
20 | absorbing direct and indirect
solar energy, specially | |||||||||||||||||||||||||||||||||||
21 | designed for holding a substantial amount of
useful thermal | |||||||||||||||||||||||||||||||||||
22 | energy and to transfer that energy to a gas, solid, or
| |||||||||||||||||||||||||||||||||||
23 | liquid or to use that energy directly; or
|
| |||||||
| |||||||
1 | (2) A mechanism that absorbs solar energy and converts | ||||||
2 | it into
electricity; or
| ||||||
3 | (3) A mechanism or process used for gathering solar | ||||||
4 | energy through
wind or thermal gradients; or
| ||||||
5 | (4) A component used to transfer thermal energy to a | ||||||
6 | gas, solid, or
liquid, or to convert it into electricity.
| ||||||
7 | (c) "Solar storage mechanism" means equipment or elements | ||||||
8 | (such as
piping and transfer mechanisms, containers, heat | ||||||
9 | exchangers, or controls
thereof, and gases, solids, liquids, or | ||||||
10 | combinations thereof) that are
utilized for storing solar | ||||||
11 | energy, gathered by a solar collector, for
subsequent use.
| ||||||
12 | (d) "Solar energy system" means
| ||||||
13 | (1)(A) A complete assembly, structure, or design of | ||||||
14 | solar
collector, or a solar storage mechanism, which uses | ||||||
15 | solar energy for
generating electricity that is primarily | ||||||
16 | consumed on the property in which the solar energy system | ||||||
17 | resides, or for heating or cooling gases, solids, liquids,
| ||||||
18 | or other materials for the primary benefit of the property | ||||||
19 | on which the solar energy system resides ;
| ||||||
20 | (B) The design, materials, or elements of a system and | ||||||
21 | its
maintenance, operation, and labor components, and the | ||||||
22 | necessary
components, if any, of supplemental conventional | ||||||
23 | energy systems designed
or constructed to interface with a | ||||||
24 | solar energy system; and
| ||||||
25 | (C) Any legal, financial, or institutional orders, | ||||||
26 | certificates, or
mechanisms, including easements, leases, |
| |||||||
| |||||||
1 | and agreements, required to
ensure continued access to | ||||||
2 | solar energy, its source, or its use in a
solar energy | ||||||
3 | system, and including monitoring and educational elements
| ||||||
4 | of a demonstration project.
| ||||||
5 | (2) "Solar energy system" does not include :
| ||||||
6 | (A) Distribution equipment that is equally usable | ||||||
7 | in a conventional
energy system except for those | ||||||
8 | components of the equipment that are
necessary for | ||||||
9 | meeting the requirements of efficient solar energy | ||||||
10 | utilization;
and
| ||||||
11 | (B) Components of a solar energy system that serve | ||||||
12 | structural,
insulating, protective, shading, | ||||||
13 | aesthetic, or other non-solar energy
utilization | ||||||
14 | purposes, as defined in the regulations of the | ||||||
15 | Department
of Commerce and Economic Opportunity ; and .
| ||||||
16 | (C) A commercial solar energy system, as defined by | ||||||
17 | this Code, in counties with fewer than 3,000,000 | ||||||
18 | inhabitants.
| ||||||
19 | (3) The solar energy system shall conform to the | ||||||
20 | standards for those
systems established by regulation of | ||||||
21 | the Department of Commerce
and Economic Opportunity.
| ||||||
22 | (Source: P.A. 94-793, eff. 5-19-06.)
| ||||||
23 | (35 ILCS 200/Art. 10 Div. 20 heading new) | ||||||
24 | Division 20. Commercial Solar Energy Systems |
| |||||||
| |||||||
1 | (35 ILCS 200/10-720 new) | ||||||
2 | Sec. 10-720. Definitions. For the purpose of this Division | ||||||
3 | 20: | ||||||
4 | "Allowance for physical depreciation" means the actual age | ||||||
5 | in years of the commercial solar energy system on the | ||||||
6 | assessment date divided by 40 years multiplied by its trended | ||||||
7 | real property cost basis. The physical depreciation, however, | ||||||
8 | may not reduce the value of the commercial solar energy system | ||||||
9 | to less than 50% of its trended real property cost basis. | ||||||
10 | "Commercial solar energy system" means any device or | ||||||
11 | assembly of devices which use solar energy from the sun for | ||||||
12 | generating electricity for the primary purpose of wholesale or | ||||||
13 | retail sale, and which is not primarily consumed on the | ||||||
14 | property in which the device or devices reside. | ||||||
15 | "Commercial solar energy system real property cost basis" | ||||||
16 | represents the real property improvements of a commercial solar | ||||||
17 | energy system and means $446,000 per megawatt of system | ||||||
18 | capacity. | ||||||
19 | "Ground installation" means the installation of a | ||||||
20 | commercial solar energy system on a parcel or tract of land | ||||||
21 | that does not contain any improvement used for any purpose | ||||||
22 | other than a commercial solar energy system. | ||||||
23 | "Trending factor" means a number equal to the consumer | ||||||
24 | price index (U.S. city average all items) published by the | ||||||
25 | Bureau of Labor Statistics for the December immediately | ||||||
26 | preceding the assessment date, divided by the consumer price |
| |||||||
| |||||||
1 | index (U.S. city average all items) published by the Bureau of | ||||||
2 | Labor Statistics for December of 2017. | ||||||
3 | "Trended real property cost basis" means the commercial | ||||||
4 | solar energy system real property cost basis multiplied by the | ||||||
5 | trending factor. | ||||||
6 | (35 ILCS 200/10-725 new) | ||||||
7 | Sec. 10-725. Improvement valuation of commercial solar | ||||||
8 | energy systems in counties with fewer than 3,000,000 | ||||||
9 | inhabitants. Beginning in assessment year 2018, the fair cash | ||||||
10 | value of commercial solar energy system improvements in | ||||||
11 | counties with fewer than 3,000,000 inhabitants shall be | ||||||
12 | determined by subtracting the allowance for physical | ||||||
13 | depreciation from the trended real property cost basis. | ||||||
14 | (35 ILCS 200/10-730 new) | ||||||
15 | Sec. 10-730. Exempt properties. The provisions of this | ||||||
16 | Division do not apply to commercial solar energy systems that | ||||||
17 | are owned by any person or entity that is otherwise exempt from | ||||||
18 | taxation under this Code. | ||||||
19 | (35 ILCS 200/10-735 new) | ||||||
20 | Sec. 10-735. Commercial solar energy systems not subject to | ||||||
21 | equalization. Commercial solar energy systems assessable under | ||||||
22 | this Division are not subject to equalization factors applied | ||||||
23 | by the Department or any board of review, assessor, or chief |
| |||||||
| |||||||
1 | county assessment officer. | ||||||
2 | (35 ILCS 200/10-740 new) | ||||||
3 | Sec. 10-740. Survey for ground installations; parcel | ||||||
4 | identification numbers. Notwithstanding any other provision of | ||||||
5 | law, the owner of the land the ground installation commercial | ||||||
6 | solar energy system is constructed upon may request a metes and | ||||||
7 | bounds survey description of the area immediately surrounding | ||||||
8 | the commercial solar energy system, including access routes, | ||||||
9 | over which the owner of the commercial solar energy system has | ||||||
10 | exclusive control. Upon such a request the owner of the ground | ||||||
11 | installation commercial solar energy system shall at his or her | ||||||
12 | own expense, use an Illinois registered land surveyor to | ||||||
13 | prepare the survey. The owner of the ground installation | ||||||
14 | commercial solar energy system shall deliver a copy of the | ||||||
15 | survey to the chief county assessment officer and to the owner | ||||||
16 | of the land the ground installation commercial solar energy | ||||||
17 | system is constructed on. Upon receiving a copy of the survey, | ||||||
18 | the chief county assessment officer shall issue a separate | ||||||
19 | parcel identification number or numbers for the property | ||||||
20 | containing the ground installation commercial solar energy | ||||||
21 | system to be used only for the purposes of property assessment | ||||||
22 | for taxation. A plat prepared under this section shall not be | ||||||
23 | construed as a violation of the Plat Act. | ||||||
24 | (35 ILCS 200/10-745 new) |
| |||||||
| |||||||
1 | Sec. 10-745. Land Valuation for ground installations. | ||||||
2 | Beginning in assessment year 2018, the fair cash value per acre | ||||||
3 | of a parcel of land upon which a commercial solar energy system | ||||||
4 | is installed on the ground shall be determined by multiplying | ||||||
5 | $10,000 by the trending factor. | ||||||
6 | (35 ILCS 200/10-750 new) | ||||||
7 | Sec. 10-750. Property assessed as farmland. | ||||||
8 | Notwithstanding any other provision of law, a tract of real | ||||||
9 | property assessed as farmland in accordance with Section 10-110 | ||||||
10 | in the assessment year prior to valuation under this Division | ||||||
11 | shall return to being assessed as farmland in accordance with | ||||||
12 | Section 10-110 in the year following completion of the removal | ||||||
13 | of the commercial solar energy system as long as the property | ||||||
14 | is returned to a farm use as defined in Section 1-60 of this | ||||||
15 | Act, notwithstanding that the land was not used for farming for | ||||||
16 | the 2 preceding years.
| ||||||
17 | Section 99. Effective date. This Act takes effect upon | ||||||
18 | becoming law.
|