HB3120 99TH GENERAL ASSEMBLY

LRB099 09976 HLH 30195 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3120

Introduced , by Rep. Tom Demmer

SYNOPSIS AS INTRODUCED:

35 ILCS 200/Art. 10 Div. 18 heading
35 ILCS 200/10-600
35 ILCS 200/10-610
35 ILCS 200/10-625 new

Amends the Property Tax Code. Provides that a Division of the Code concerning wind energy property assessment also applies to solar energy devices. Effective immediately.

FISCAL NOTE ACT MAY APPLY

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 the heading of Division 18 of Article 10 and Sections 10-600 and 10-610 and by adding Section 10-625 as follows:

(35 ILCS 200/Art. 10 Div. 18 heading)

DIVISION 18. RENEWABLE WIND ENERGY PROPERTY ASSESSMENT

(Source: P.A. 95-644, eff. 10-12-07; 95-876, eff. 8-21-08.)

(35 ILCS 200/10-600)

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

"Renewable energy device" means any wind energy device or solar energy device, as defined in this section.

"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.

"Solar energy device" means any single device, with a nameplate capacity of at least 0.5 megawatts, that uses photovoltaic cells and panels to convert energy from the sun into electricity that is not primarily consumed by the solar energy device owner.

"Wind energy device 2007 real property cost basis" excludes personal property but represents both the land and real property improvements of a wind energy device and means $360,000 per megawatt of nameplate capacity.

"Solar energy device real property cost basis" excludes personal property but represents both the land and real property improvements of a solar energy device. Solar energy device real property cost basis shall be equivalent to 20% of the original cost reduced by the value of any investment tax credits, production tax credits, or cash grants in lieu of investment tax credits applicable to the renewable energy device, as certified by the Department of Revenue.

"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 renewable energy device 2007 real property cost basis multiplied by the trending factor.

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

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

(35 ILCS 200/10-610)

Sec. 10-610. Applicability.

(a) The provisions of this Division apply for assessment years 2007 through 2026 2016.

(b) The provisions of this Division do not apply to renewable wind energy devices that are owned by any person or entity that is otherwise exempt from taxation under the Property Tax Code.

(Source: P.A. 95-644, eff. 10-12-07; 96-1036, eff. 1-1-11.)

(35 ILCS 200/10-625 new)

Sec. 10-625. Certification of solar energy device real property cost basis. Within 60 days after completion of construction of a solar energy device, the owner of the solar energy device shall provide documentation to the Department of Revenue demonstrating the solar energy device real property cost basis. Solar energy device real property cost basis shall include the total cost of the solar energy device, not including any costs of site-selection, site-development, staff or personnel, or other ancillary costs. Within 60 days of receiving the documentation from the solar energy device owner, the Department shall certify the solar energy device real property cost basis to the owner in writing.

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