Commercial Wind Energy Property Valuation (Illinois)

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Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Illinois

Name Commercial Wind Energy Property Valuation
Incentive Type Property Tax Incentive
Applicable Sector Commercial, Industrial, Utility
Eligible Technologies Wind
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount Valuation: 360,000/MW (annually adjusted for inflation) for commercial wind devices larger than 500 kW

Depreciation: Up to 70% of the trended real property cost basis








Start Date 2007 Assessment Year
Expiration Date 2016 Assessment Year

















Program Administrator Illinois Department of Commerce and Economic Opportunity
Website http://www.revenue.state.il.us/LocalGovernment/PropertyTax/windenergydevice.pdf
Date added to DSIRE 2007-10-26
Last DSIRE Review 2014-10-15



References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Summary

Prior to 2007, wind energy devices generating electricity for commercial sale were assessed differently depending on where they were located. Some counties valued the entire turbine structure (tower plus generation equipment) as "real property", subject to taxation, while others deemed only the tower portion as taxable property. This difference in valuation procedure meant that the taxable value of identical wind turbines could vary by as much as 75% from county to county, creating dramatically different tax loads and complicating projects that cross county lines.

In October 2007 Illinois passed Public Act 095-0644, a law providing consistent valuation procedures for commercial wind farm equipment (amended via HB4797 in 2010). For ten years, beginning in the 2007 assessment year, wind energy devices larger than 500 kilowatts (kW) and producing power for commercial sale will be valued at $360,000/Megawatt (MW) of capacity, annually adjusted for inflation according to the U.S. Consumer Price Index. This figure is termed the trended real property cost basis. Because Illinois assesses property for property tax purposes at 1/3 of its fair cash value, in practice the assessed value of commercial wind energy property is $119,988/MW.

The law also defines an allowance for physical depreciation of the device, calculated by dividing the age of the turbine by 25 and then multiplying the result by the trended real property cost basis. The physical depreciation allowance may not exceed 70% of the trended real property cost basis, though additional depreciation allowances may be granted for functional or external obsolescence.


Incentive Contact

Contact Name Public Information
Department Illinois Department of Revenue

Address Willard Ice Building
Address 2 101 West Jefferson Street
Place Springfield, Illinois
Zip/Postal Code 62702
Phone (800) 732-8866
Phone 2 (217) 782-3336


Website http://www.revenue.state.il.us
Contact Name Kara Moretto
Department Illinois Department of Revenue
Division Local Government Services Bureau
Address Willard Ice Building
Address 2 101 West Jefferson Street
Place Springfield, Illinois
Zip/Postal Code 62702
Phone (800) 732-8866


Email kara.moretto@illinois.gov
Website http://www.revenue.state.il.us
     

Authorities (Please contact the if there are any file problems.)

Authority 1: § 35 ILCS 200/10-600 et seq.
Date Effective 2007 Assessment Year
Date Enacted 2007-10-17
Expiration Date 2016 Assessment Year


















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"