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Illinois Senate Bill SB1526

Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1526 Compare Versions

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11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1526 Introduced 2/4/2025, by Sen. David Koehler SYNOPSIS AS INTRODUCED: 35 ILCS 200/Art. 10 Div. 22 heading new35 ILCS 200/10-920 new35 ILCS 200/10-925 new35 ILCS 200/10-935 new35 ILCS 200/10-940 new35 ILCS 200/10-945 new35 ILCS 200/10-950 new35 ILCS 200/10-955 new35 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. LRB104 05726 HLH 15756 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1526 Introduced 2/4/2025, by Sen. David Koehler SYNOPSIS AS INTRODUCED: 35 ILCS 200/Art. 10 Div. 22 heading new35 ILCS 200/10-920 new35 ILCS 200/10-925 new35 ILCS 200/10-935 new35 ILCS 200/10-940 new35 ILCS 200/10-945 new35 ILCS 200/10-950 new35 ILCS 200/10-955 new35 ILCS 200/10-960 new 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. LRB104 05726 HLH 15756 b LRB104 05726 HLH 15756 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1526 Introduced 2/4/2025, by Sen. David Koehler SYNOPSIS AS INTRODUCED:
33 35 ILCS 200/Art. 10 Div. 22 heading new35 ILCS 200/10-920 new35 ILCS 200/10-925 new35 ILCS 200/10-935 new35 ILCS 200/10-940 new35 ILCS 200/10-945 new35 ILCS 200/10-950 new35 ILCS 200/10-955 new35 ILCS 200/10-960 new 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
44 35 ILCS 200/Art. 10 Div. 22 heading new
55 35 ILCS 200/10-920 new
66 35 ILCS 200/10-925 new
77 35 ILCS 200/10-935 new
88 35 ILCS 200/10-940 new
99 35 ILCS 200/10-945 new
1010 35 ILCS 200/10-950 new
1111 35 ILCS 200/10-955 new
1212 35 ILCS 200/10-960 new
1313 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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1919 1 AN ACT concerning revenue.
2020 2 Be it enacted by the People of the State of Illinois,
2121 3 represented in the General Assembly:
2222 4 Section 5. The Property Tax Code is amended by adding
2323 5 Division 22 to Article 10 as follows:
2424 6 (35 ILCS 200/Art. 10 Div. 22 heading new)
2525 7 Division 22. Commercial energy storage systems
2626 8 (35 ILCS 200/10-920 new)
2727 9 Sec. 10-920. Definitions. As used in this Division:
2828 10 "Allowance for physical depreciation" means the product
2929 11 of: (1) the quotient generated by dividing the actual age in
3030 12 years of the commercial energy storage system on the
3131 13 assessment date by 15 years; multiplied by (2) the commercial
3232 14 energy storage system's trended real property cost basis. The
3333 15 allowance for physical depreciation may not exceed an amount
3434 16 that reduces the value of the commercial energy storage system
3535 17 to 30% of its trended real property cost basis or less.
3636 18 "Commercial energy storage system" means any device or
3737 19 assembly of devices that (i) is either installed as a
3838 20 stand-alone system or tied to a power generation system, (ii)
3939 21 is used for the primary purpose of storing of energy for
4040 22 wholesale or retail sale and not primarily for storage to
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4444 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1526 Introduced 2/4/2025, by Sen. David Koehler SYNOPSIS AS INTRODUCED:
4545 35 ILCS 200/Art. 10 Div. 22 heading new35 ILCS 200/10-920 new35 ILCS 200/10-925 new35 ILCS 200/10-935 new35 ILCS 200/10-940 new35 ILCS 200/10-945 new35 ILCS 200/10-950 new35 ILCS 200/10-955 new35 ILCS 200/10-960 new 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
4646 35 ILCS 200/Art. 10 Div. 22 heading new
4747 35 ILCS 200/10-920 new
4848 35 ILCS 200/10-925 new
4949 35 ILCS 200/10-935 new
5050 35 ILCS 200/10-940 new
5151 35 ILCS 200/10-945 new
5252 35 ILCS 200/10-950 new
5353 35 ILCS 200/10-955 new
5454 35 ILCS 200/10-960 new
5555 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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5757 LRB104 05726 HLH 15756 b
5858 A BILL FOR
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6464 35 ILCS 200/Art. 10 Div. 22 heading new
6565 35 ILCS 200/10-920 new
6666 35 ILCS 200/10-925 new
6767 35 ILCS 200/10-935 new
6868 35 ILCS 200/10-940 new
6969 35 ILCS 200/10-945 new
7070 35 ILCS 200/10-950 new
7171 35 ILCS 200/10-955 new
7272 35 ILCS 200/10-960 new
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9191 1 later consume on the property on which the device resides, and
9292 2 (iii) is an energy storage system as defined in Section 16-135
9393 3 of the Public Utilities Act.
9494 4 "Commercial energy storage system real property cost
9595 5 basis" means the owner of the commercial energy storage
9696 6 system's interest in the land within the project boundaries
9797 7 and real property improvements and shall be calculated at $124
9898 8 per kilowatt hour (kWh) of rated kilowatt hour (kWh) energy
9999 9 capacity.
100100 10 "Consumer Price Index" means the index published by the
101101 11 Bureau of Labor Statistics of the United States Department of
102102 12 Labor that measures the average change in prices of goods and
103103 13 services purchased by all urban consumers, United States city
104104 14 average, all items, 1982-84 = 100.
105105 15 "Rated kWh energy capacity" means the maximum amount of
106106 16 stored energy in kilowatt hours.
107107 17 "Trended real property cost basis" means the commercial
108108 18 energy storage system real property cost basis multiplied by
109109 19 the trending factor.
110110 20 "Trending factor" means the number generated by dividing
111111 21 the Consumer Price Index published by the Bureau of Labor
112112 22 Statistics in the December immediately preceding the
113113 23 assessment date by the Consumer Price Index published by the
114114 24 Bureau of Labor Statistics in December of 2024.
115115 25 (35 ILCS 200/10-925 new)
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126126 1 Sec. 10-925. Improvement valuation of commercial energy
127127 2 storage systems in counties with fewer than 3,000,000
128128 3 inhabitants. Beginning in assessment year 2025, the fair cash
129129 4 value of commercial energy storage system improvements in
130130 5 counties with fewer than 3,000,000 inhabitants shall be
131131 6 determined by subtracting the allowance for physical
132132 7 depreciation from the commercial energy storage system trended
133133 8 real property cost basis. Functional obsolescence and external
134134 9 obsolescence of the commercial energy storage system
135135 10 improvements may further reduce the fair cash value of the
136136 11 commercial energy storage system improvements to the extent
137137 12 they are proven by the taxpayer by clear and convincing
138138 13 evidence, except that the combined depreciation from all
139139 14 physical, functional, and economic obsolescence shall not
140140 15 exceed 70% of the trended real property cost basis. The chief
141141 16 county assessment officer may make reasonable adjustments to
142142 17 the actual age of the commercial energy storage system to
143143 18 account for the routine replacement or upgrade of system
144144 19 components.
145145 20 (35 ILCS 200/10-935 new)
146146 21 Sec. 10-935. Commercial energy storage systems not subject
147147 22 to equalization. Commercial energy storage systems that are
148148 23 subject to assessment under this Division are not subject to
149149 24 equalization factors applied by the Department or by any board
150150 25 of review, assessor, or chief county assessment officer.
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161161 1 (35 ILCS 200/10-940 new)
162162 2 Sec. 10-940. Survey for commercial energy storage systems;
163163 3 parcel identification numbers for property improved with a
164164 4 commercial energy storage system. Notwithstanding any other
165165 5 provision of law, the owner of the commercial energy storage
166166 6 system shall commission a metes and bounds survey description
167167 7 of the land upon which the commercial energy storage system is
168168 8 located, including access routes, over which the owner of the
169169 9 commercial energy storage system has exclusive control. Land
170170 10 held for future development shall not be included in the
171171 11 project area for real property assessment purposes. The owner
172172 12 of the commercial energy storage system shall, at the owner's
173173 13 own expense, use an Illinois-registered land surveyor to
174174 14 prepare the survey. The owner of the commercial energy storage
175175 15 system shall deliver a copy of the survey to the chief county
176176 16 assessment officer and to the owner of the land upon which the
177177 17 commercial energy storage system is located. Upon receiving a
178178 18 copy of the survey and an agreed acknowledgment to the
179179 19 separate parcel identification number by the owner of the land
180180 20 upon which the commercial energy storage system is
181181 21 constructed, the chief county assessment officer shall issue a
182182 22 separate parcel identification for the real property
183183 23 improvements, including the land containing the commercial
184184 24 energy storage system, to be used only for the purposes of
185185 25 property assessment for taxation. If no survey is provided,
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196196 1 the chief county assessment officer shall determine the area
197197 2 of the site that is occupied by the commercial energy storage
198198 3 system. That determination shall be final and may not be
199199 4 challenged on review by the owner of the commercial energy
200200 5 storage system. The property records shall contain the legal
201201 6 description of the commercial energy storage system parcel and
202202 7 describe any leasehold interest or other interest of the owner
203203 8 of the commercial energy storage system in the property. A
204204 9 plat prepared under this Section shall not be construed as a
205205 10 violation of the Plat Act.
206206 11 Surveys that are prepared in accordance with either
207207 12 Section 10-740 or Section 10-620 and that also include the
208208 13 location of a commercial energy storage system in their metes
209209 14 and bounds description shall satisfy the requirements of this
210210 15 Section.
211211 16 (35 ILCS 200/10-945 new)
212212 17 Sec. 10-945. Real estate taxes. Notwithstanding the
213213 18 provisions of Section 9-175 of this Code, the owner of the
214214 19 commercial energy storage system shall be liable for the real
215215 20 estate taxes for the land and real property improvements of
216216 21 the commercial energy storage system. Notwithstanding the
217217 22 foregoing, the owner of the land upon which a commercial
218218 23 energy storage system is located may pay any unpaid tax of the
219219 24 commercial energy storage system parcel prior to the
220220 25 initiation of any tax sale proceedings.
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231231 1 (35 ILCS 200/10-950 new)
232232 2 Sec. 10-950. Property assessed as farmland.
233233 3 Notwithstanding any other provision of law, real property
234234 4 assessed as farmland in accordance with Section 10-110 in the
235235 5 assessment year prior to valuation under this Division shall
236236 6 return to being assessed as farmland in accordance with
237237 7 Section 10-110 in the year following completion of the removal
238238 8 of the commercial energy storage system as long as the
239239 9 property is returned to a farm use as defined in Section 1-60,
240240 10 notwithstanding that the land was not used for farming for the
241241 11 2 preceding years.
242242 12 (35 ILCS 200/10-955 new)
243243 13 Sec. 10-955. Abatements. Any taxing district may, upon a
244244 14 majority vote of its governing authority and after the
245245 15 determination of the assessed valuation as set forth in this
246246 16 Code, order the clerk of the appropriate municipality or
247247 17 county to abate any portion of real property taxes otherwise
248248 18 levied or extended by the taxing district on a commercial
249249 19 energy storage system.
250250 20 (35 ILCS 200/10-960 new)
251251 21 Sec. 10-960. Applicability. The provisions of this
252252 22 Division apply for assessment years 2025 through 2040.
253253 23 Section 99. Effective date. This Act takes effect upon
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