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Sen. Don Harmon
Filed: 5/1/2018
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1 | | AMENDMENT TO SENATE BILL 486
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2 | | AMENDMENT NO. ______. Amend Senate Bill 486, AS AMENDED, by |
3 | | replacing everything after the enacting clause with the |
4 | | following:
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5 | | "Section 5. The Property Tax Code is amended by changing |
6 | | Section 10-5 and by adding Division 20 of Article 10 as |
7 | | follows:
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8 | | (35 ILCS 200/10-5)
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9 | | Sec. 10-5. Solar energy systems; definitions. It is the |
10 | | policy of this
State that the use of solar energy systems |
11 | | should be encouraged because they
conserve nonrenewable |
12 | | resources, reduce pollution and promote the health and
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13 | | well-being of the people of this State, and should be valued in |
14 | | relation to
these benefits.
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15 | | (a) "Solar energy" means radiant energy received from
the |
16 | | sun at wave lengths suitable for heat transfer, photosynthetic |
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1 | | use,
or photovoltaic use.
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2 | | (b) "Solar collector" means
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3 | | (1) An assembly, structure, or design, including |
4 | | passive elements,
used for gathering, concentrating, or |
5 | | absorbing direct and indirect
solar energy, specially |
6 | | designed for holding a substantial amount of
useful thermal |
7 | | energy and to transfer that energy to a gas, solid, or
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8 | | liquid or to use that energy directly; or
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9 | | (2) A mechanism that absorbs solar energy and converts |
10 | | it into
electricity; or
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11 | | (3) A mechanism or process used for gathering solar |
12 | | energy through
wind or thermal gradients; or
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13 | | (4) A component used to transfer thermal energy to a |
14 | | gas, solid, or
liquid, or to convert it into electricity.
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15 | | (c) "Solar storage mechanism" means equipment or elements |
16 | | (such as
piping and transfer mechanisms, containers, heat |
17 | | exchangers, or controls
thereof, and gases, solids, liquids, or |
18 | | combinations thereof) that are
utilized for storing solar |
19 | | energy, gathered by a solar collector, for
subsequent use.
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20 | | (d) "Solar energy system" means
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21 | | (1)(A) A complete assembly, structure, or design of |
22 | | solar
collector, or a solar storage mechanism, which uses |
23 | | solar energy for
generating electricity that is primarily
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24 | | consumed on the property on which the solar energy system
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25 | | resides, or for heating or cooling gases, solids, liquids,
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26 | | or other materials for the primary benefit of the property
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1 | | on which the solar energy system resides ;
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2 | | (B) The design, materials, or elements of a system and |
3 | | its
maintenance, operation, and labor components, and the |
4 | | necessary
components, if any, of supplemental conventional |
5 | | energy systems designed
or constructed to interface with a |
6 | | solar energy system; and
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7 | | (C) Any legal, financial, or institutional orders, |
8 | | certificates, or
mechanisms, including easements, leases, |
9 | | and agreements, required to
ensure continued access to |
10 | | solar energy, its source, or its use in a
solar energy |
11 | | system, and including monitoring and educational elements
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12 | | of a demonstration project.
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13 | | (2) "Solar energy system" does not include
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14 | | (A) Distribution equipment that is equally usable |
15 | | in a conventional
energy system except for those |
16 | | components of the equipment that are
necessary for |
17 | | meeting the requirements of efficient solar energy |
18 | | utilization;
and
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19 | | (B) Components of a solar energy system that serve |
20 | | structural,
insulating, protective, shading, |
21 | | aesthetic, or other non-solar energy
utilization |
22 | | purposes, as defined in the regulations of the |
23 | | Department
of Commerce and Economic Opportunity ; and .
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24 | | (C) A commercial solar energy system, as defined
by |
25 | | this Code, in counties with fewer than 3,000,000
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26 | | inhabitants.
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1 | | (3) The solar energy system shall conform to the |
2 | | standards for those
systems established by regulation of |
3 | | the Department of Commerce
and Economic Opportunity.
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4 | | (Source: P.A. 94-793, eff. 5-19-06.)
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5 | | (35 ILCS 200/Art. 10 Div. 20 heading new) |
6 | | Division 20. Commercial Solar Energy Systems |
7 | | (35 ILCS 200/10-720 new) |
8 | | Sec. 10-720. Definitions. For the purpose of this Division
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9 | | 20: |
10 | | "Allowance for physical depreciation" means (i) the actual |
11 | | age
in years of the commercial solar energy system on the |
12 | | assessment
date divided by 25 years, multiplied by (ii) its |
13 | | trended real property
cost basis. The physical depreciation, |
14 | | however, may not reduce
the value of the commercial solar |
15 | | energy system to less than 30%
of its trended real property |
16 | | cost basis. |
17 | | "Commercial solar energy system" means any device or
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18 | | assembly of devices that (i) is ground installed and (ii) uses
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19 | | solar energy from the sun for generating electricity for the
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20 | | primary purpose of wholesale or retail sale and not primarily
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21 | | for consumption on the property on which the device or devices
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22 | | reside. |
23 | | "Commercial solar energy system real property cost basis"
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24 | | means the owner of a commercial solar energy system's
interest |
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1 | | in the land within the project boundaries and real
property |
2 | | improvements and shall be calculated at $199,000 per megawatt |
3 | | of
nameplate capacity. For the purposes of this Section,
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4 | | "nameplate capacity" has the same definition as found in |
5 | | Section
1-10 of the Illinois Power Agency Act. |
6 | | "Ground installed" means the installation of a commercial
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7 | | solar energy system, with the primary purpose of solar energy
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8 | | generation for wholesale or retail sale, on a parcel or tract |
9 | | of
land. |
10 | | "Trended real property cost basis" means the commercial
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11 | | solar energy system real property cost basis multiplied by the
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12 | | trending factor. |
13 | | "Trending factor" means a number equal to the Consumer
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14 | | Price Index (U.S. city average all items) published by the
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15 | | Bureau of Labor Statistics for the December immediately
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16 | | preceding the assessment date, divided by the Consumer Price
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17 | | Index (U.S. city average all items) published by the Bureau of
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18 | | Labor Statistics for December of 2017. |
19 | | (35 ILCS 200/10-725 new) |
20 | | Sec. 10-725. Improvement valuation of commercial solar
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21 | | energy systems in counties with fewer than 3,000,000
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22 | | inhabitants. Beginning in assessment year 2018, the fair cash
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23 | | value of commercial solar energy system improvements in |
24 | | counties
with fewer than 3,000,000 inhabitants shall be |
25 | | determined by
subtracting the allowance for physical |
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1 | | depreciation from the
trended real property cost basis. |
2 | | Functional obsolescence and
external obsolescence of the solar |
3 | | energy device may further
reduce the fair cash value of the |
4 | | commercial solar energy system
improvements, to the extent they |
5 | | are proved by the taxpayer by
clear and convincing evidence. |
6 | | (35 ILCS 200/10-730 new) |
7 | | Sec. 10-730. Exempt properties. The provisions of this
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8 | | Division do not apply to commercial solar energy systems that
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9 | | are owned by any person or entity that is otherwise exempt from
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10 | | taxation under this Code. |
11 | | (35 ILCS 200/10-735 new) |
12 | | Sec. 10-735. Commercial solar energy systems not subject to
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13 | | equalization. Commercial solar energy systems assessable under
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14 | | this Division are not subject to equalization factors applied |
15 | | by
the Department or any board of review, assessor, or chief |
16 | | county
assessment officer. |
17 | | (35 ILCS 200/10-740 new) |
18 | | Sec. 10-740. Survey for ground installed commercial solar
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19 | | energy systems; parcel identification numbers for property
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20 | | improved with a ground installed commercial solar energy |
21 | | system.
Notwithstanding any other provision of law, the owner |
22 | | of the
ground installed commercial solar energy system shall |
23 | | commission
a metes and bounds survey description of the land |
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1 | | upon which the
commercial solar energy system is installed, |
2 | | including access
routes, over which the owner of the commercial |
3 | | solar energy
system has exclusive control. The owner of the |
4 | | ground installed
commercial solar energy system shall, at his |
5 | | or her own expense,
use an Illinois-registered land surveyor to |
6 | | prepare the survey.
The owner of the ground installed |
7 | | commercial solar energy system
shall deliver a copy of the |
8 | | survey to the chief county
assessment officer and to the owner |
9 | | of the land upon which the
ground installed commercial solar |
10 | | energy system is constructed.
Upon receiving a copy of the |
11 | | survey, the chief county assessment
officer shall issue |
12 | | separate parcel identification numbers for
the real property |
13 | | improvements and the land containing the
ground installed |
14 | | commercial solar energy system to be used only
for the purposes |
15 | | of property assessment for taxation. The
property records shall |
16 | | contain the legal description of the
commercial solar energy |
17 | | system parcel and describe any leasehold
interest or other |
18 | | interest of the owner of the commercial solar
energy system in |
19 | | the property. A plat prepared under this
Section shall not be |
20 | | construed as a violation of the Plat Act. |
21 | | (35 ILCS 200/10-745 new) |
22 | | Sec. 10-745. Real estate taxes. Notwithstanding the
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23 | | provisions of Section 9-175 of this Code, the owner of the
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24 | | commercial solar energy system shall be liable for the real
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25 | | estate taxes for the land and real property improvements of a
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1 | | ground installed commercial solar energy system.
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2 | | Notwithstanding the forgoing, the owner of the land upon which |
3 | | a
commercial solar energy system is installed may pay any |
4 | | unpaid
tax of the commercial solar energy system parcel prior |
5 | | to the
initiation of any tax sale proceedings. |
6 | | (35 ILCS 200/10-750 new) |
7 | | Sec. 10-750. Property assessed as farmland. |
8 | | Notwithstanding
any other provision of law, real property |
9 | | assessed as farmland
in accordance with Section 10-110 in the |
10 | | assessment year prior
to valuation under this Division shall |
11 | | return to being assessed
as farmland in accordance with Section |
12 | | 10-110 in the year
following completion of the removal of the |
13 | | commercial solar
energy system as long as the property is |
14 | | returned to a farm use
as defined in Section 1-60 of this Act, |
15 | | notwithstanding that the
land was not used for farming for the |
16 | | 2 preceding years. |
17 | | (35 ILCS 200/10-755 new) |
18 | | Sec. 10-755. Abatements. Any taxing district, upon a
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19 | | majority vote of its governing authority, may, after the
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20 | | determination of the assessed valuation as set forth in this
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21 | | Code, order the clerk of the appropriate municipality or county
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22 | | to abate any portion of real property taxes otherwise levied or
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23 | | extended by the taxing district on a commercial solar energy
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24 | | system. |