Bill Amendment: IL SB0486 | 2017-2018 | 100th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: PROP TX-SOLAR ENERGY SYSTEMS

Status: 2018-08-10 - Public Act . . . . . . . . . 100-0781 [SB0486 Detail]

Download: Illinois-2017-SB0486-Senate_Amendment_001.html

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Sen. Don Harmon

Filed: 3/1/2018

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AMENDMENT TO SENATE BILL 486
AMENDMENT NO. ______. Amend Senate Bill 486 by replacing
everything after the enacting clause with the following:
"Section 5. The Property Tax Code is amended by adding
Division 20 to Article 10 as follows:
(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 purposes of this Division
20:
"Allowance for physical depreciation" means (i) the actual
age in years of the commercial solar energy system on the
assessment date divided by 20 years multiplied by (ii) its
trended real property cost basis. The physical depreciation,
however, may not reduce the value of the commercial solar

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energy system to less than 30% of its trended real property
cost basis.
"Commercial solar energy system" means any device or
assembly of devices that (i) is ground installed and (ii) uses
solar energy from the sun for generating electricity for the
primary purpose of wholesale or retail sale and not primarily
for consumption on the property on which the device or devices
reside.
"Commercial solar energy system real property cost basis"
represents both the freehold estate and the leasehold estate.
The leasehold estate shall have a real property cost basis of
$194,000 per megawatt of nameplate capacity. The freehold
estate shall have a real property cost basis of $5,000 per
megawatt of nameplate capacity. For the purposes of this
Section, "nameplate capacity" has the same definition as found
in Section 1-10 of the Illinois Power Agency Act.
"Freehold estate" means the land upon which the commercial
solar energy system is installed.
"Ground installed" means the installation of a commercial
solar energy system, with the primary purpose of solar energy
generation for wholesale or retail sale, on a parcel or tract
of land.
"Leasehold estate" means the real property improvements of
a commercial solar energy system.
"Trended real property cost basis" means the commercial
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
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 of 2017.
(35 ILCS 200/10-725 new)
Sec. 10-725. Improvement valuation of commercial solar
energy systems in counties with fewer than 3,000,000
inhabitants. Beginning in assessment year 2018, the fair cash
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 200/10-730 new)
Sec. 10-730. Exempt properties. The provisions of this
Division do not apply to commercial solar energy systems that
are owned by any person or entity that is otherwise exempt from
taxation under this Code.

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(35 ILCS 200/10-735 new)
Sec. 10-735. Commercial solar energy systems not subject to
equalization. Commercial solar energy systems assessable under
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
energy systems; parcel identification numbers. 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 area immediately surrounding
the commercial solar energy system, 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, the chief
county assessment officer shall issue a separate parcel
identification number or numbers for the property containing

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the ground installed commercial solar energy system to be used
only for the purposes of property assessment for taxation. 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. Unpaid taxes and liens. Except as otherwise
provided in this Section, despite the combined assessment
valuation of the leasehold estate and freehold estate, recourse
for unpaid taxes or liens for any commercial solar energy
system shall be limited to the leasehold estate with no
recourse against the freehold estate. The leasehold estate
shall not be responsible for: unpaid taxes or liens on the
freehold estate from periods before or after the term of the
leasehold estate; or liens on the freehold estate unrelated to
the leasehold estate.
(35 ILCS 200/10-750 new)
Sec. 10-750. Farmland. Notwithstanding any other provision
of law, a portion of the freehold estate that was assessed as
farmland in accordance with Section 10-110 of this Act in the
assessment year prior to valuation under this Division shall
return to being assessed as farmland in accordance with Section
10-110 of this Act 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

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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. Incentive agreements. Notwithstanding
anything in this Division, the governing body of a municipality
or county and the owner of a commercial solar energy system may
enter into a voluntary agreement to make payments in lieu of
taxes. If such agreement is entered into, the agreement will be
in lieu of property taxes otherwise assessed by the
municipality or county against the commercial solar energy
system as set forth in this Code.
(35 ILCS 200/10-760 new)
Sec. 10-760. Applicability. The provisions of this
Division apply for assessment years 2018 through 2033.
Section 99. Effective date. This Act takes effect upon
becoming law.".