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| Public Act 100-0781 | ||||
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Property Tax Code is amended by changing | ||||
Section 10-5 and by adding Division 20 of Article 10 as | ||||
follows:
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(35 ILCS 200/10-5)
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Sec. 10-5. Solar energy systems; definitions. It is the | ||||
policy of this
State that the use of solar energy systems | ||||
should be encouraged because they
conserve nonrenewable | ||||
resources, reduce pollution and promote the health and
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well-being of the people of this State, and should be valued in | ||||
relation to
these benefits.
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(a) "Solar energy" means radiant energy received from
the | ||||
sun at wave lengths suitable for heat transfer, photosynthetic | ||||
use,
or photovoltaic use.
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(b) "Solar collector" means
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(1) An assembly, structure, or design, including | ||||
passive elements,
used for gathering, concentrating, or | ||||
absorbing direct and indirect
solar energy, specially | ||||
designed for holding a substantial amount of
useful thermal | ||||
energy and to transfer that energy to a gas, solid, or
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liquid or to use that energy directly; or
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(2) A mechanism that absorbs solar energy and converts | ||
it into
electricity; or
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(3) A mechanism or process used for gathering solar | ||
energy through
wind or thermal gradients; or
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(4) A component used to transfer thermal energy to a | ||
gas, solid, or
liquid, or to convert it into electricity.
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(c) "Solar storage mechanism" means equipment or elements | ||
(such as
piping and transfer mechanisms, containers, heat | ||
exchangers, or controls
thereof, and gases, solids, liquids, or | ||
combinations thereof) that are
utilized for storing solar | ||
energy, gathered by a solar collector, for
subsequent use.
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(d) "Solar energy system" means
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(1)(A) A complete assembly, structure, or design of | ||
solar
collector, or a solar storage mechanism, which uses | ||
solar energy for
generating electricity that is primarily
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consumed on the property on which the solar energy system
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resides, or for heating or cooling gases, solids, liquids,
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or other materials for the primary benefit of the property
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on which the solar energy system resides;
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(B) The design, materials, or elements of a system and | ||
its
maintenance, operation, and labor components, and the | ||
necessary
components, if any, of supplemental conventional | ||
energy systems designed
or constructed to interface with a | ||
solar energy system; and
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(C) Any legal, financial, or institutional orders, | ||
certificates, or
mechanisms, including easements, leases, | ||
and agreements, required to
ensure continued access to | ||
solar energy, its source, or its use in a
solar energy | ||
system, and including monitoring and educational elements
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of a demonstration project.
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(2) "Solar energy system" does not include
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(A) Distribution equipment that is equally usable | ||
in a conventional
energy system except for those | ||
components of the equipment that are
necessary for | ||
meeting the requirements of efficient solar energy | ||
utilization;
and
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(B) Components of a solar energy system that serve | ||
structural,
insulating, protective, shading, | ||
aesthetic, or other non-solar energy
utilization | ||
purposes, as defined in the regulations of the | ||
Department
of Commerce and Economic Opportunity; and .
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(C) A commercial solar energy system, as defined
by | ||
this Code, in counties with fewer than 3,000,000
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inhabitants.
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(3) The solar energy system shall conform to the | ||
standards for those
systems established by regulation of | ||
the Department of Commerce
and Economic Opportunity.
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(Source: P.A. 94-793, eff. 5-19-06.)
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(35 ILCS 200/Art. 10 Div. 20 heading new) | ||
Division 20. Commercial Solar Energy Systems | ||
(35 ILCS 200/10-720 new) | ||
Sec. 10-720. Definitions. For the purpose of this Division
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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
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assembly of devices that (i) is ground installed and (ii) uses
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solar energy from the sun for generating electricity for the
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primary purpose of wholesale or retail sale and not primarily
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for consumption on the property on which the device or devices
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reside. | ||
"Commercial solar energy system real property cost basis"
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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 $218,000 per megawatt | ||
of
nameplate capacity. For the purposes of this Section,
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"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
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solar energy system, with the primary purpose of solar energy
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generation for wholesale or retail sale, on a parcel or tract | ||
of
land. | ||
"Trended real property cost basis" means the commercial
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solar energy system real property cost basis multiplied by the
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trending factor. | ||
"Trending factor" means a number equal to the Consumer
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Price Index (U.S. city average all items) published by the
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Bureau of Labor Statistics for the December immediately
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preceding the assessment date, divided by the Consumer Price
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Index (U.S. city average all items) published by the Bureau of
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Labor Statistics for December of 2017. | ||
(35 ILCS 200/10-725 new) | ||
Sec. 10-725. Improvement valuation of commercial solar
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energy systems in counties with fewer than 3,000,000
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inhabitants. Beginning in assessment year 2018, the fair cash
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value of commercial solar energy system improvements in | ||
counties
with fewer than 3,000,000 inhabitants shall be | ||
determined by
subtracting the allowance for physical | ||
depreciation from the
trended real property cost basis. | ||
Functional obsolescence and
external obsolescence of the solar | ||
energy device may further
reduce the fair cash value of the | ||
commercial solar energy system
improvements, to the extent they | ||
are proved by the taxpayer by
clear and convincing evidence. | ||
(35 ILCS 200/10-735 new) | ||
Sec. 10-735. Commercial solar energy systems not subject to
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equalization. Commercial solar energy systems assessable under
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this Division are not subject to equalization factors applied | ||
by
the Department or any board of review, assessor, or chief | ||
county
assessment officer. | ||
(35 ILCS 200/10-740 new) | ||
Sec. 10-740. Survey for ground installed commercial solar
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energy systems; parcel identification numbers for property
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improved with a ground installed commercial solar energy | ||
system.
Notwithstanding any other provision of law, the owner | ||
of the
ground installed commercial solar energy system shall | ||
commission
a metes and bounds survey description of the land | ||
upon which the
commercial solar energy system is installed, | ||
including access
routes, over which the owner of the commercial | ||
solar energy
system has exclusive control. The owner of the | ||
ground installed
commercial solar energy system shall, at his | ||
or her own expense,
use an Illinois-registered land surveyor to | ||
prepare the survey.
The owner of the ground installed | ||
commercial solar energy system
shall deliver a copy of the | ||
survey to the chief county
assessment officer and to the owner | ||
of the land upon which the
ground installed commercial solar | ||
energy system is constructed. Upon receiving a copy of the | ||
survey and an agreed acknowledgement to the separate parcel | ||
identification number by the owner of the land upon which the | ||
ground installed commercial solar energy system is | ||
constructed, the chief county assessment officer shall issue a | ||
separate parcel identification for the real property | ||
improvements, including the land containing the ground | ||
installed commercial solar energy system, to be used only for | ||
the purposes of property assessment for taxation. The property | ||
records shall contain the legal description of the
commercial | ||
solar energy system parcel and describe any leasehold
interest | ||
or other interest of the owner of the commercial solar
energy | ||
system in the property. A plat prepared under this
Section | ||
shall not be construed as a violation of the Plat Act. | ||
(35 ILCS 200/10-745 new) | ||
Sec. 10-745. Real estate taxes. Notwithstanding the
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provisions of Section 9-175 of this Code, the owner of the
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commercial solar energy system shall be liable for the real
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estate taxes for the land and real property improvements of a
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ground installed commercial solar energy system.
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Notwithstanding the forgoing, the owner of the land upon which | ||
a
commercial solar energy system is installed may pay any | ||
unpaid
tax of the commercial solar energy system parcel prior | ||
to the
initiation of any tax sale proceedings. | ||
(35 ILCS 200/10-750 new) | ||
Sec. 10-750. Property assessed as farmland. | ||
Notwithstanding
any other provision of law, real property | ||
assessed as farmland
in accordance with Section 10-110 in the | ||
assessment year prior
to valuation under this Division shall | ||
return to being assessed
as farmland in accordance with Section | ||
10-110 in the year
following completion of the removal of the | ||
commercial solar
energy system as long as the property is | ||
returned to a farm use
as defined in Section 1-60 of this Act, | ||
notwithstanding that the
land was not used for farming for the | ||
2 preceding years. | ||
(35 ILCS 200/10-755 new) | ||
Sec. 10-755. Abatements. Any taxing district, upon a
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majority vote of its governing authority, may, after the
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determination of the assessed valuation as set forth in this
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Code, order the clerk of the appropriate municipality or county
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to abate any portion of real property taxes otherwise levied or
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extended by the taxing district on a commercial solar energy
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system. | ||
(35 ILCS 200/10-760 new) | ||
Sec. 10-760. Applicability. The provisions of this | ||
Division
apply for assessment years 2018 through 2033.
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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