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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 changing
5Section 10-5 and by adding Division 20 of Article 10 as
7    (35 ILCS 200/10-5)
8    Sec. 10-5. Solar energy systems; definitions. It is the
9policy of this State that the use of solar energy systems
10should be encouraged because they conserve nonrenewable
11resources, reduce pollution and promote the health and
12well-being of the people of this State, and should be valued in
13relation to these benefits.
14    (a) "Solar energy" means radiant energy received from the
15sun at wave lengths suitable for heat transfer, photosynthetic
16use, 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



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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
9exchangers, or controls thereof, and gases, solids, liquids, or
10combinations thereof) that are utilized for storing solar
11energy, 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 on 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,



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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)
Division 20. Commercial Solar Energy Systems




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1    (35 ILCS 200/10-720 new)
2    Sec. 10-720. Definitions. For the purpose of this Division
4    "Allowance for physical depreciation" means (i) the actual
5age in years of the commercial solar energy system on the
6assessment date divided by 25 years, multiplied by (ii) its
7trended real property cost basis. The physical depreciation,
8however, may not reduce the value of the commercial solar
9energy system to less than 30% of its trended real property
10cost basis.
11    "Commercial solar energy system" means any device or
12assembly of devices that (i) is ground installed and (ii) uses
13solar energy from the sun for generating electricity for the
14primary purpose of wholesale or retail sale and not primarily
15for consumption on the property on which the device or devices
17    "Commercial solar energy system real property cost basis"
18means the owner of a commercial solar energy system's interest
19in the land within the project boundaries and real property
20improvements and shall be calculated at $199,000 per megawatt
21of nameplate capacity. For the purposes of this Section,
22"nameplate capacity" has the same definition as found in
23Section 1-10 of the Illinois Power Agency Act.
24    "Ground installed" means the installation of a commercial
25solar energy system, with the primary purpose of solar energy
26generation for wholesale or retail sale, on a parcel or tract



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1of land.
2    "Trended real property cost basis" means the commercial
3solar energy system real property cost basis multiplied by the
4trending factor.
5    "Trending factor" means a number equal to the Consumer
6Price Index (U.S. city average all items) published by the
7Bureau of Labor Statistics for the December immediately
8preceding the assessment date, divided by the Consumer Price
9Index (U.S. city average all items) published by the Bureau of
10Labor Statistics for December of 2017.
11    (35 ILCS 200/10-725 new)
12    Sec. 10-725. Improvement valuation of commercial solar
13energy systems in counties with fewer than 3,000,000
14inhabitants. Beginning in assessment year 2018, the fair cash
15value of commercial solar energy system improvements in
16counties with fewer than 3,000,000 inhabitants shall be
17determined by subtracting the allowance for physical
18depreciation from the trended real property cost basis.
19Functional obsolescence and external obsolescence of the solar
20energy device may further reduce the fair cash value of the
21commercial solar energy system improvements, to the extent they
22are proved by the taxpayer by clear and convincing evidence.
23    (35 ILCS 200/10-730 new)
24    Sec. 10-730. Exempt properties. The provisions of this



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1Division do not apply to commercial solar energy systems that
2are owned by any person or entity that is otherwise exempt from
3taxation under this Code.
4    (35 ILCS 200/10-735 new)
5    Sec. 10-735. Commercial solar energy systems not subject to
6equalization. Commercial solar energy systems assessable under
7this Division are not subject to equalization factors applied
8by the Department or any board of review, assessor, or chief
9county assessment officer.
10    (35 ILCS 200/10-740 new)
11    Sec. 10-740. Survey for ground installed commercial solar
12energy systems; parcel identification numbers for property
13improved with a ground installed commercial solar energy
14system. Notwithstanding any other provision of law, the owner
15of the ground installed commercial solar energy system shall
16commission a metes and bounds survey description of the land
17upon which the commercial solar energy system is installed,
18including access routes, over which the owner of the commercial
19solar energy system has exclusive control. The owner of the
20ground installed commercial solar energy system shall, at his
21or her own expense, use an Illinois-registered land surveyor to
22prepare the survey. The owner of the ground installed
23commercial solar energy system shall deliver a copy of the
24survey to the chief county assessment officer and to the owner



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1of the land upon which the ground installed commercial solar
2energy system is constructed. Upon receiving a copy of the
3survey, the chief county assessment officer shall issue
4separate parcel identification numbers for the real property
5improvements and the land containing the ground installed
6commercial solar energy system to be used only for the purposes
7of property assessment for taxation. The property records shall
8contain the legal description of the commercial solar energy
9system parcel and describe any leasehold interest or other
10interest of the owner of the commercial solar energy system in
11the property. A plat prepared under this Section shall not be
12construed as a violation of the Plat Act.
13    (35 ILCS 200/10-745 new)
14    Sec. 10-745. Real estate taxes. Notwithstanding the
15provisions of Section 9-175 of this Code, the owner of the
16commercial solar energy system shall be liable for the real
17estate taxes for the land and real property improvements of a
18ground installed commercial solar energy system.
19Notwithstanding the forgoing, the owner of the land upon which
20a commercial solar energy system is installed may pay any
21unpaid tax of the commercial solar energy system parcel prior
22to the initiation of any tax sale proceedings.
23    (35 ILCS 200/10-750 new)
24    Sec. 10-750. Property assessed as farmland.



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1Notwithstanding any other provision of law, real property
2assessed as farmland in accordance with Section 10-110 in the
3assessment year prior to valuation under this Division shall
4return to being assessed as farmland in accordance with Section
510-110 in the year following completion of the removal of the
6commercial solar energy system as long as the property is
7returned to a farm use as defined in Section 1-60 of this Act,
8notwithstanding that the land was not used for farming for the
92 preceding years.
10    (35 ILCS 200/10-755 new)
11    Sec. 10-755. Abatements. Any taxing district, upon a
12majority vote of its governing authority, may, after the
13determination of the assessed valuation as set forth in this
14Code, order the clerk of the appropriate municipality or county
15to abate any portion of real property taxes otherwise levied or
16extended by the taxing district on a commercial solar energy
18    (35 ILCS 200/10-760 new)
19    Sec. 10-760. Applicability. The provisions of this
20Division apply for assessment years 2018 through 2033.
21    Section 99. Effective date. This Act takes effect upon
22becoming law.