Improvement Valuation of Commercial Solar Energy Systems

IL Property Tax Assessment commercial industrial residential federal government

Administered by: Illinois Department of Revenue

Program Details

Program ID: 22439
Effective Date: 8/10/2018
Expiration Date: 12/31/2033
Last Updated: 3/17/2025

Eligibility

Eligible Sectors

commercial industrial residential federal government

Eligible Technologies

solar photovoltaics

Program Summary

Illinois uses a specific formula to value commercial solar energy systems for property tax purposes in counties with fewer than 3 million inhabitants. "Commercial" in this sense means that the system is used primarily to generate electricity for wholesale or retail sale, rather than referring to the customer class.

The valuation formula is calculated by substracting allowance for physical depreciation from the trended real property cost basis (set at $218,000 per MW of nameplate capacity in 2018, with adjustments for CPI inflation). More information is available here.

Contact & Resources

Additional Resources

https://tax.illinois.gov/localgovernments/property/solar-energy-systems.html

Please verify current program details with the administering agency before making any financial decisions.