Bill Text: IL SB2365 | 2021-2022 | 102nd General Assembly | Engrossed

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Bill Title: Amends the Property Tax Code. Provides that photovoltaic electricity generation systems subject to power purchase agreements or leases for solar energy between a third-party owner, an operator, or both, and an end user of electricity are considered solar energy systems. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2022-04-30 - Chief Sponsor Changed to Sen. Don Harmon [SB2365 Detail]

Download: Illinois-2021-SB2365-Engrossed.html

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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
Section 10-5 as follows:
(35 ILCS 200/10-5)
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
well-being of the people of this State, and should be valued in
relation to these benefits.
(a) "Solar energy" means radiant energy received from the
sun at wave lengths suitable for heat transfer, photosynthetic
use, or photovoltaic use.
(b) "Solar collector" means
(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 liquid or to use that energy directly; or
(2) A mechanism that absorbs solar energy and converts

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it into electricity; or
(3) A mechanism or process used for gathering solar
energy through wind or thermal gradients; or
(4) A component used to transfer thermal energy to a
gas, solid, or liquid, or to convert it into electricity.
(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.
(d) "Solar energy system" means
(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
consumed on the property on which the solar energy system
resides, or for heating or cooling gases, solids, liquids,
or other materials for the primary benefit of the property
on which the solar energy system resides;
(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
(C) Any legal, financial, or institutional orders,
certificates, or mechanisms, including easements, leases,
and agreements, required to ensure continued access to

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solar energy, its source, or its use in a solar energy
system, and including monitoring and educational elements
of a demonstration project; or .
(D) Photovoltaic electricity generation systems
subject to power purchase agreements or leases for solar
energy between a third-party owner, an operator, or both,
and an end user of electricity, where such systems are
located on the end user of electricity's side of the
electric meter and which primarily are used to offset the
electricity load of the end user behind whose electric
meter the system is connected. A system primarily is used
to offset the electricity load of the end user of
electricity if the system is estimated to produce 110% or
fewer kilowatt-hours of electricity than consumed by the
end user of electricity at such meter in the last 12 full
months prior to the system being placed in service.
(2) "Solar energy system" does not include:
(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;
(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

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Department of Commerce and Economic Opportunity; or
and
(C) A commercial solar energy system, as defined
by this Code, in counties with fewer than 3,000,000
inhabitants.
(3) The solar energy system shall conform to the
standards for those systems established by regulation of
the Department of Commerce and Economic Opportunity.
(Source: P.A. 100-781, eff. 8-10-18.)
Section 99. Effective date. This Act takes effect upon
becoming law.