Bill Text: IL HB5890 | 2023-2024 | 103rd General Assembly | Introduced

---

Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-11-12 - Referred to Rules Committee [HB5890 Detail]

Download: Illinois-2023-HB5890-Introduced.html

---

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5890 Introduced , 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.
LRB103 42480 HLH 75711 b
A BILL FOR
HB5890 LRB103 42480 HLH 75711 b
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 adding
Division 22 to Article 10 as follows:
(35 ILCS 200/Art. 10 Div. 22 heading new)
Division 22. Commercial energy storage systems
(35 ILCS 200/10-920 new)
Sec. 10-920. Definitions. As used in this Division:
"Allowance for physical depreciation" means the product
of: (1) the quotient generated by dividing the actual age in
years of the commercial energy storage system on the
assessment date by 25 years; multiplied by (2) the commercial
energy storage system's trended real property cost basis. The
allowance for physical depreciation may not exceed an amount
that reduces the value of the commercial energy storage system
to 30% of its trended real property cost basis or less.
"Commercial energy storage system" means any device or
assembly of devices that (i) is either installed as a
stand-alone system or tied to a power generation system, (ii)
is used for the primary purpose of storing of energy for
wholesale or retail sale and not primarily for storage to

HB5890 - 2 - LRB103 42480 HLH 75711 b
later consume on the property on which the device resides, and
(iii) is an energy storage system as defined in Section 16-135
of the Public Utilities Act.
"Commercial energy storage system real property cost
basis" means the owner of the commercial energy storage
system's interest in the land within the project boundaries
and real property improvements and shall be calculated at $496
per kilowatt hour (kWh) of rated kilowatt hour (kWh) energy
capacity.
"Consumer Price Index" means the index published by the
Bureau of Labor Statistics of the United States Department of
Labor that measures the average change in prices of goods and
services purchased by all urban consumers, United States city
average, all items, 1982-84 = 100.
"Rated kWh energy capacity" means the maximum amount of
stored energy in kilowatt hours.
"Trended real property cost basis" means the commercial
energy storage system real property cost basis multiplied by
the trending factor.
"Trending factor" means the number generated by dividing
the Consumer Price Index published by the Bureau of Labor
Statistics in the December immediately preceding the
assessment date by the Consumer Price Index published by the
Bureau of Labor Statistics in December of 2023.
(35 ILCS 200/10-925 new)

HB5890 - 3 - LRB103 42480 HLH 75711 b
Sec. 10-925. Improvement valuation of commercial energy
storage systems in counties with fewer than 3,000,000
inhabitants. Beginning in assessment year 2024, 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. Functional obsolescence and external
obsolescence of the commercial energy storage system
improvements may further reduce the fair cash value of the
commercial energy storage system improvements to the extent
they are proven by the taxpayer by clear and convincing
evidence. The chief county assessment officer may make
reasonable adjustments to the actual age of the commercial
energy storage system to account for the routine replacement
or upgrade of system components.
(35 ILCS 200/10-935 new)
Sec. 10-935. Commercial energy storage systems not subject
to equalization. Commercial energy storage systems that are
subject to assessment under this Division are not subject to
equalization factors applied by the Department or by any board
of review, assessor, or chief county assessment officer.
(35 ILCS 200/10-940 new)
Sec. 10-940. Survey for commercial energy storage systems;

HB5890 - 4 - LRB103 42480 HLH 75711 b
parcel identification numbers for property improved with a
commercial energy storage system. Notwithstanding any other
provision of law, 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, including access routes, over which the owner of the
commercial energy storage system has exclusive control. Land
held for future development shall not be included in the
project area for real property assessment purposes. The owner
of the commercial energy storage system shall, at the owner's
own expense, use an Illinois-registered land surveyor to
prepare the survey. The owner of the commercial energy storage
system shall deliver a copy of the survey to the chief county
assessment officer and to the owner of the land upon which the
commercial energy storage system is located. Upon receiving a
copy of the survey and an agreed acknowledgment to the
separate parcel identification number by the owner of the land
upon which the commercial energy storage system is
constructed, the chief county assessment officer shall issue a
separate parcel identification for the real property
improvements, including the land containing the commercial
energy storage system, to be used only for the purposes of
property assessment for taxation. If no survey is provided,
the chief county assessment officer shall determine the area
of the site that is occupied by the commercial energy storage
system. That determination shall be final and may not be

HB5890 - 5 - LRB103 42480 HLH 75711 b
challenged on review. The property records shall contain the
legal description of the commercial energy storage system
parcel and describe any leasehold interest or other interest
of the owner of the commercial energy storage system in the
property. A plat prepared under this Section shall not be
construed as a violation of the Plat Act.
Surveys that are prepared in accordance with either
Section 10-740 or Section 10-620 and that also include the
location of a commercial energy storage system in their metes
and bounds description shall satisfy the requirements of this
Section.
(35 ILCS 200/10-945 new)
Sec. 10-945. Real estate taxes. Notwithstanding the
provisions of Section 9-175 of this Code, the owner of the
commercial energy storage system shall be liable for the real
estate taxes for the land and real property improvements of
the commercial energy storage system. Notwithstanding the
foregoing, the owner of the land upon which a commercial
energy storage system is located may pay any unpaid tax of the
commercial energy storage system parcel prior to the
initiation of any tax sale proceedings.
(35 ILCS 200/10-950 new)
Sec. 10-950. Property assessed as farmland.
Notwithstanding any other provision of law, real property

HB5890 - 6 - LRB103 42480 HLH 75711 b
assessed as farmland in accordance with Section 10-110 in the
assessment year prior to valuation under this Division shall
return to being assessed as farmland in accordance with
Section 10-110 in the year following completion of the removal
of the commercial energy storage system as long as the
property is returned to a farm use as defined in Section 1-60,
notwithstanding that the land was not used for farming for the
2 preceding years.
(35 ILCS 200/10-955 new)
Sec. 10-955. Abatements. Any taxing district may, upon a
majority vote of its governing authority and after the
determination of the assessed valuation as set forth in this
Code, order the clerk of the appropriate municipality or
county to abate any portion of real property taxes otherwise
levied or extended by the taxing district on a commercial
energy storage system.
(35 ILCS 200/10-960 new)
Sec. 10-960. Applicability. The provisions of this
Division apply for assessment years 2024 through 2040.