102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB3627

 

Introduced 1/19/2022, by Sen. John Connor

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/Art. 10 Div. 21 heading new
35 ILCS 200/10-800 new
35 ILCS 200/10-805 new
35 ILCS 200/10-810 new
35 ILCS 200/10-815 new
35 ILCS 200/10-820 new

    Amends the Property Tax Code. Creates valuation procedures for eligible energy storage systems. Provides that an "eligible energy storage system" means commercially available technology that is capable of absorbing energy and storing a capacity of up to 2 megawatts for use at a later time, including, but not limited to, electrochemical, thermal, and electromechanical technologies. Effective immediately.


LRB102 24481 HLH 33715 b

 

 

A BILL FOR

 

SB3627LRB102 24481 HLH 33715 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by adding
5Division 21 to Article 10 as follows:
 
6    (35 ILCS 200/Art. 10 Div. 21 heading new)
7
Division 21. Eligible energy storage system

 
8    (35 ILCS 200/10-800 new)
9    Sec. 10-800. Policy; definitions.
10    (a) It is the policy of this State that the use of energy
11storage systems should be encouraged because they increase the
12reliability of the State's electrical grid, expedite and
13assist in the implementation of renewable energy sources, and
14thereby promote the health and well-being of the people of
15this State and should be valued in relation to these benefits.
16    (b) For the purposes of this Division 21:
17    "2021 real property cost basis" excludes personal property
18but represents both the land and real property improvements of
19an eligible energy storage system and means $500,000 per
20megawatt of nameplate capacity.
21    "Allowance for physical depreciation" means (i) the actual
22age in years of the eligible energy storage system on the

 

 

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1assessment date divided by 25 years multiplied by (ii) the
2trended real property cost basis. The physical depreciation,
3however, may not reduce the value of the eligible energy
4storage system to less than 30% of the trended real property
5cost basis.
6    "Eligible energy storage system" means commercially
7available technology that is capable of absorbing energy and
8storing a capacity of up to 2 megawatts for use at a later
9time, including, but not limited to, electrochemical, thermal,
10and electromechanical technologies, and may be interconnected
11behind the customer's meter or interconnected behind its own
12meter. Energy storage systems owned, operated, or constructed
13by the owners or affiliates of electric generating facilities
14that are eligible to supply renewable energy credits or
15pursuant to subsection (c-5) of Section 1-75 of the Illinois
16Power Agency Act and energy storage systems located adjacent
17to electric generating facilities that are eligible to supply
18renewable energy credits pursuant to subsection (c-5) of
19Section 1-75 of the Illinois Power Agency Act are not
20considered "eligible energy storage systems" for purposes of
21this Division 21.
22    "Trended real property cost basis" means the 2021 real
23property cost basis multiplied by the trending factor.
24    "Trending factor" means a number equal to the Consumer
25Price Index (U.S. city average all items) published by the
26Bureau of Labor Statistics for the December immediately

 

 

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1preceding the assessment date, divided by the Consumer Price
2Index (U.S. city average all items) published by the Bureau of
3Labor Statistics for December 2021.
 
4    (35 ILCS 200/10-805 new)
5    Sec. 10-805. Valuation of eligible energy storage system.
6Beginning in assessment year 2021, the fair cash value of
7eligible energy storage systems shall be determined by
8subtracting the allowance for physical depreciation from the
9trended real property cost basis. Functional obsolescence and
10external obsolescence may further reduce the fair cash value
11of the eligible energy storage system to the extent those
12factors are proved by the taxpayer by clear and convincing
13evidence.
 
14    (35 ILCS 200/10-810 new)
15    Sec. 10-810. Applicability.
16    (a) The provisions of this Division apply for assessment
17years 2021 through 2040.
18    (b) The provisions of this Division do not apply to
19eligible energy storage systems that are owned by any person
20or entity that is otherwise exempt from taxation under this
21Code.
 
22    (35 ILCS 200/10-815 new)
23    Sec. 10-815. Not subject to equalization. An eligible

 

 

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1energy storage system is not subject to equalization. Eligible
2energy storage system assessable property is not subject to
3equalization factors applied by the Department or any board of
4review, assessor, or chief county assessment officer.
 
5    (35 ILCS 200/10-820 new)
6    Sec. 10-820. Platting requirements; parcel identification
7numbers. The owner of an eligible energy storage system shall,
8at his or her own expense, use an Illinois registered land
9surveyor to prepare a plat showing the metes and bounds
10description, including access routes, of the area immediately
11surrounding the eligible energy storage system or systems over
12which that owner has exclusive control; provided that such
13platting does not constitute a subdivision of land subject to
14the provisions of the Plat Act. Within 60 days after
15completion of construction of the eligible energy storage
16system, the owner of the eligible energy storage system shall
17record the plat and deliver a copy of it to the chief county
18assessment officer and to the owner of the land surrounding
19the newly platted area. Upon receiving a copy of the plat, the
20chief county assessment officer shall issue a separate parcel
21identification number or numbers for the property containing
22the eligible energy storage system or systems.
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.