Bill Text: IL SB3627 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Creates valuation procedures for eligible energy storage systems. Provides that an "eligible energy storage system" means commercially available technology that is capable of absorbing energy and storing a capacity of up to 2 megawatts for use at a later time, including, but not limited to, electrochemical, thermal, and electromechanical technologies. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-04-30 - Chief Sponsor Changed to Sen. Don Harmon [SB3627 Detail]

Download: Illinois-2021-SB3627-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB3627 Introduced 1/19/2022, by Sen. John Connor SYNOPSIS AS INTRODUCED:
35 ILCS 200/Art. 10 Div. 21 heading new
35 ILCS 200/10-800 new
35 ILCS 200/10-805 new
35 ILCS 200/10-810 new
35 ILCS 200/10-815 new
35 ILCS 200/10-820 new
Amends the Property Tax Code. Creates valuation procedures for eligible energy storage systems. Provides that an "eligible energy storage system" means commercially available technology that is capable of absorbing energy and storing a capacity of up to 2 megawatts for use at a later time, including, but not limited to, electrochemical, thermal, and electromechanical technologies. Effective immediately.
LRB102 24481 HLH 33715 b
A BILL FOR
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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 adding
Division 21 to Article 10 as follows:
(35 ILCS 200/Art. 10 Div. 21 heading new)
Division 21. Eligible energy storage system
(35 ILCS 200/10-800 new)
Sec. 10-800. Policy; definitions.
(a) It is the policy of this State that the use of energy
storage systems should be encouraged because they increase the
reliability of the State's electrical grid, expedite and
assist in the implementation of renewable energy sources, and
thereby promote the health and well-being of the people of
this State and should be valued in relation to these benefits.
(b) For the purposes of this Division 21:
"2021 real property cost basis" excludes personal property
but represents both the land and real property improvements of
an eligible energy storage system and means $500,000 per
megawatt of nameplate capacity.
"Allowance for physical depreciation" means (i) the actual
age in years of the eligible energy storage system on the

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assessment date divided by 25 years multiplied by (ii) the
trended real property cost basis. The physical depreciation,
however, may not reduce the value of the eligible energy
storage system to less than 30% of the trended real property
cost basis.
"Eligible energy storage system" means commercially
available technology that is capable of absorbing energy and
storing a capacity of up to 2 megawatts for use at a later
time, including, but not limited to, electrochemical, thermal,
and electromechanical technologies, and may be interconnected
behind the customer's meter or interconnected behind its own
meter. Energy storage systems owned, operated, or constructed
by the owners or affiliates of electric generating facilities
that are eligible to supply renewable energy credits or
pursuant to subsection (c-5) of Section 1-75 of the Illinois
Power Agency Act and energy storage systems located adjacent
to electric generating facilities that are eligible to supply
renewable energy credits pursuant to subsection (c-5) of
Section 1-75 of the Illinois Power Agency Act are not
considered "eligible energy storage systems" for purposes of
this Division 21.
"Trended real property cost basis" means the 2021 real
property cost basis multiplied by the trending factor.
"Trending factor" means a number equal to the Consumer
Price Index (U.S. city average all items) published by the
Bureau of Labor Statistics for the December immediately

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preceding the assessment date, divided by the Consumer Price
Index (U.S. city average all items) published by the Bureau of
Labor Statistics for December 2021.
(35 ILCS 200/10-805 new)
Sec. 10-805. Valuation of eligible energy storage system.
Beginning in assessment year 2021, the fair cash value of
eligible energy storage systems shall be determined by
subtracting the allowance for physical depreciation from the
trended real property cost basis. Functional obsolescence and
external obsolescence may further reduce the fair cash value
of the eligible energy storage system to the extent those
factors are proved by the taxpayer by clear and convincing
evidence.
(35 ILCS 200/10-810 new)
Sec. 10-810. Applicability.
(a) The provisions of this Division apply for assessment
years 2021 through 2040.
(b) The provisions of this Division do not apply to
eligible energy storage systems that are owned by any person
or entity that is otherwise exempt from taxation under this
Code.
(35 ILCS 200/10-815 new)
Sec. 10-815. Not subject to equalization. An eligible

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energy storage system is not subject to equalization. Eligible
energy storage system assessable property is not subject to
equalization factors applied by the Department or any board of
review, assessor, or chief county assessment officer.
(35 ILCS 200/10-820 new)
Sec. 10-820. Platting requirements; parcel identification
numbers. The owner of an eligible energy storage system shall,
at his or her own expense, use an Illinois registered land
surveyor to prepare a plat showing the metes and bounds
description, including access routes, of the area immediately
surrounding the eligible energy storage system or systems over
which that owner has exclusive control; provided that such
platting does not constitute a subdivision of land subject to
the provisions of the Plat Act. Within 60 days after
completion of construction of the eligible energy storage
system, the owner of the eligible energy storage system shall
record the plat and deliver a copy of it to the chief county
assessment officer and to the owner of the land surrounding
the newly platted area. Upon receiving a copy of the plat, the
chief county assessment officer shall issue a separate parcel
identification number or numbers for the property containing
the eligible energy storage system or systems.
Section 99. Effective date. This Act takes effect upon
becoming law.