104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB1791
 
Introduced 1/28/2025, by Rep. Jay Hoffman
 
SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/Art. 10 Div. 22 heading new
35 ILCS 200/10-920 new
35 ILCS 200/10-925 new
35 ILCS 200/10-935 new
35 ILCS 200/10-940 new
35 ILCS 200/10-945 new
35 ILCS 200/10-950 new
35 ILCS 200/10-955 new
35 ILCS 200/10-960 new
    Amends the Property Tax Code. Provides that the fair cash value of commercial energy storage system improvements in counties with fewer than 3,000,000 inhabitants shall be determined by subtracting the allowance for physical depreciation from the commercial energy storage system trended real property cost basis. Provides that those commercial energy storage systems are not subject to equalization factors applied by the Department of Revenue or by any board of review, assessor, or chief county assessment officer. Provides that the owner of the commercial energy storage system shall commission a metes and bounds survey description of the land upon which the commercial energy storage system is located. Contains other provisions concerning the assessment of commercial energy storage systems. Effective immediately.


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A BILL FOR
 
HB1791LRB104 07656 HLH 17700 b

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 adding 
5Division 22 to Article 10 as follows:
 
6    (35 ILCS 200/Art. 10 Div. 22 heading new)
7
Division 22.  Commercial energy storage systems

 
8    (35 ILCS 200/10-920 new)
9    Sec. 10-920. Definitions. As used in this Division:
10    "Allowance for physical depreciation" means the product 
11of: (1) the quotient generated by dividing the actual age in 
12years of the commercial energy storage system on the 
13assessment date by 15 years; multiplied by (2) the commercial 
14energy storage system's trended real property cost basis. The 
15allowance for physical depreciation may not exceed an amount 
16that reduces the value of the commercial energy storage system 
17to 30% of its trended real property cost basis or less. 
18    "Commercial energy storage system" means any device or 
19assembly of devices that (i) is either installed as a 
20stand-alone system or tied to a power generation system, (ii) 
21is used for the primary purpose of storing of energy for 
22wholesale or retail sale and not primarily for storage to 
 
 
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1later consume on the property on which the device resides, and 
2(iii) is an energy storage system as defined in Section 16-135 
3of the Public Utilities Act. 
4    "Commercial energy storage system real property cost 
5basis" means the owner of the commercial energy storage 
6system's interest in the land within the project boundaries 
7and real property improvements and shall be calculated at $124 
8per kilowatt hour (kWh) of rated kilowatt hour (kWh) energy 
9capacity. 
10    "Consumer Price Index" means the index published by the 
11Bureau of Labor Statistics of the United States Department of 
12Labor that measures the average change in prices of goods and 
13services purchased by all urban consumers, United States city 
14average, all items, 1982-84 = 100. 
15    "Rated kWh energy capacity" means the maximum amount of 
16stored energy in kilowatt hours. 
17    "Trended real property cost basis" means the commercial 
18energy storage system real property cost basis multiplied by 
19the trending factor. 
20    "Trending factor" means the number generated by dividing 
21the Consumer Price Index published by the Bureau of Labor 
22Statistics in the December immediately preceding the 
23assessment date by the Consumer Price Index published by the 
24Bureau of Labor Statistics in December of 2024. 
 
25    (35 ILCS 200/10-925 new)
 
 
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1    Sec. 10-925. Improvement valuation of commercial energy 
2storage systems in counties with fewer than 3,000,000 
3inhabitants. Beginning in assessment year 2025, the fair cash 
4value of commercial energy storage system improvements in 
5counties with fewer than 3,000,000 inhabitants shall be 
6determined by subtracting the allowance for physical 
7depreciation from the commercial energy storage system trended 
8real property cost basis. Functional obsolescence and external 
9obsolescence of the commercial energy storage system 
10improvements may further reduce the fair cash value of the 
11commercial energy storage system improvements to the extent 
12they are proven by the taxpayer by clear and convincing 
13evidence, except that the combined depreciation from all 
14physical, functional, and economic obsolescence shall not 
15exceed 70% of the trended real property cost basis. The chief 
16county assessment officer may make reasonable adjustments to 
17the actual age of the commercial energy storage system to 
18account for the routine replacement or upgrade of system 
19components.
 
20    (35 ILCS 200/10-935 new)
21    Sec. 10-935. Commercial energy storage systems not subject 
22to equalization. Commercial energy storage systems that are 
23subject to assessment under this Division are not subject to 
24equalization factors applied by the Department or by any board 
25of review, assessor, or chief county assessment officer.
 
 
 
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1    (35 ILCS 200/10-940 new)
2    Sec. 10-940. Survey for commercial energy storage systems; 
3parcel identification numbers for property improved with a 
4commercial energy storage system. Notwithstanding any other 
5provision of law, the owner of the commercial energy storage 
6system shall commission a metes and bounds survey description 
7of the land upon which the commercial energy storage system is 
8located, including access routes, over which the owner of the 
9commercial energy storage system has exclusive control. Land 
10held for future development shall not be included in the 
11project area for real property assessment purposes. The owner 
12of the commercial energy storage system shall, at the owner's 
13own expense, use an Illinois-registered land surveyor to 
14prepare the survey. The owner of the commercial energy storage 
15system shall deliver a copy of the survey to the chief county 
16assessment officer and to the owner of the land upon which the 
17commercial energy storage system is located. Upon receiving a 
18copy of the survey and an agreed acknowledgment to the 
19separate parcel identification number by the owner of the land 
20upon which the commercial energy storage system is 
21constructed, the chief county assessment officer shall issue a 
22separate parcel identification for the real property 
23improvements, including the land containing the commercial 
24energy storage system, to be used only for the purposes of 
25property assessment for taxation. If no survey is provided, 
 
 
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1the chief county assessment officer shall determine the area 
2of the site that is occupied by the commercial energy storage 
3system. That determination shall be final and may not be 
4challenged on review by the owner of the commercial energy 
5storage system. The property records shall contain the legal 
6description of the commercial energy storage system parcel and 
7describe any leasehold interest or other interest of the owner 
8of the commercial energy storage system in the property. A 
9plat prepared under this Section shall not be construed as a 
10violation of the Plat Act.
11    Surveys that are prepared in accordance with either 
12Section 10-740 or Section 10-620 and that also include the 
13location of a commercial energy storage system in their metes 
14and bounds description shall satisfy the requirements of this 
15Section. 
 
16    (35 ILCS 200/10-945 new)
17    Sec. 10-945. Real estate taxes. Notwithstanding the 
18provisions of Section 9-175 of this Code, the owner of the 
19commercial energy storage system shall be liable for the real 
20estate taxes for the land and real property improvements of 
21the commercial energy storage system. Notwithstanding the 
22foregoing, the owner of the land upon which a commercial 
23energy storage system is located may pay any unpaid tax of the 
24commercial energy storage system parcel prior to the 
25initiation of any tax sale proceedings.
 
 
 
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1    (35 ILCS 200/10-950 new)
2    Sec. 10-950. Property assessed as farmland. 
3Notwithstanding any other provision of law, real property 
4assessed as farmland in accordance with Section 10-110 in the 
5assessment year prior to valuation under this Division shall 
6return to being assessed as farmland in accordance with 
7Section 10-110 in the year following completion of the removal 
8of the commercial energy storage system as long as the 
9property is returned to a farm use as defined in Section 1-60, 
10notwithstanding that the land was not used for farming for the 
112 preceding years.
 
12    (35 ILCS 200/10-955 new)
13    Sec. 10-955. Abatements. Any taxing district may, upon a 
14majority vote of its governing authority and after the 
15determination of the assessed valuation as set forth in this 
16Code, order the clerk of the appropriate municipality or 
17county to abate any portion of real property taxes otherwise 
18levied or extended by the taxing district on a commercial 
19energy storage system.
 
20    (35 ILCS 200/10-960 new)
21    Sec. 10-960. Applicability. The provisions of this 
22Division apply for assessment years 2025 through 2040.
 
23    Section 99. Effective date. This Act takes effect upon 
 
 
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1becoming law.