94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4668


 
Introduced 1/12/2006, by Rep. Frank J. Mautino
 
SYNOPSIS AS INTRODUCED:
 		













35 ILCS 200/Art. 11 Div. 5 heading new






35 ILCS 200/11-180 new






35 ILCS 200/11-185 new






35 ILCS 200/11-190 new






35 ILCS 200/11-195 new






35 ILCS 200/11-200 new






35 ILCS 200/11-205 new






35 ILCS 200/11-210 new






35 ILCS 200/11-215 new










    Amends the Property Tax Code. Sets forth procedures for the valuation of property used for wind energy conversion systems. Effective immediately.
















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FISCAL NOTE ACT MAY APPLY


HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB4668

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    AN ACT concerning revenue.

 
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    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:


 
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    Section 5. The Property Tax Code is amended  by adding 
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Division 5 to Article 11 as follows:
 
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    (35 ILCS 200/Art. 11 Div. 5 heading new)
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DIVISION 5.  WIND ENERGY PRODUCTION

 
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    (35 ILCS 200/11-180  new)
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    Sec. 11-180. Legislative Findings. The General Assembly 
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finds and declares that:
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        (1) it is desirable to develop both renewable and 
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    alternative energy resources to obtain environmental 
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    quality and public health benefit;

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        (2) the benefits of electricity from renewable and 
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    alternative energy resources accrue to the public at large, 
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    thus consumers and electric utilities and alternative 
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    retail electric suppliers share an interest in developing 
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    and using a significant level of these environmentally 
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    preferable resources in the State's electricity supply 
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    portfolio;

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        (3) encouraging energy efficiency will improve the 
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    environmental quality and public health in the State of 
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    Illinois;

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        (4) wind energy is one alternative energy source that 
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    can be used to provide electricity to utility consumers;

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        (5) some regions in the State are ideal locations for 
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    wind energy system development; and

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        (6) a consistent property valuation method must be used 
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    state-wide to ensure uniform, equitable assessments and to 
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    create an equal distribution of the tax burden among 
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    taxpayers, especially in taxing districts located in more 
 


 






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    than one county.

 
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    (35 ILCS 200/11-185  new)
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    Sec. 11-185. Definitions. For purposes of this Division 5:
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    "Person" means any natural individual, firm, trust, 
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estate, partnership, association, entity, joint stock company, 
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joint venture, corporation, limited liability company, or a 
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receiver, trustee, guardian, or other representative appointed 
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by order of any court, or any city, town, village, county, or 
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other political subdivision of this State.
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    "Wind energy conversion device" means any device 
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including, but not limited to, a wind charger, windmill, or 
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wind turbine that converts wind energy to a form of usable 
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energy.
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    "Wind energy conversion system" is all wind energy 
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conversion devices owned by a person who has executed a lease, 
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contract, or other written agreement or who has purchased or 
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acquired property so that one or more wind energy conversion 
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devices can be erected, built, or otherwise installed on that 
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property. These devices do not need to be on contiguous parcels 
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of property to be considered a part of a total wind energy 
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conversion system.

 
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    (35 ILCS 200/11-190  new)
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    Sec. 11-190. Valuation policy. It is the policy of this 
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State that, beginning on and after January 1, 2006, a wind 
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energy conversion system that is used as an electric power 
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source must be valued on the per kilowatt-hour of electricity 
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produced each calendar year.  If, however, a wind energy 
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conversion system ceases to operate for any reason, the minimum 
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assessed value of the system shall be 10% of the salvage value 
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of the system.
 
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    (35 ILCS 200/11-195  new)
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    Sec. 11-195. Exemptions. The provisions of this Division 5 
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do not apply to wind energy conversion systems that are owned 
 


 






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by an individual strictly for personal use or to any person or 
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entity that is otherwise exempt from taxation under the 
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Property Tax Code.  For the purposes of this Section, "personal 
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use" is defined as the use of any wind energy conversion system 
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with a nameplate capacity of less than 2 megawatts.
 
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    (35 ILCS 200/11-200  new)
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    Sec. 11-200. Wind energy conversion system size and 
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capacity. The Illinois Commerce Commission must determine the 
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total size of the device. Unless the systems are interconnected 
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with different distribution systems, the nameplate capacity of 
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one wind energy conversion device must be combined with the 
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nameplate capacity of any other wind energy conversion device 
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that is under common ownership. In the case of a dispute, the 
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Illinois Commerce Commission must draw all reasonable 
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inferences in favor of combining the devices into one system. 
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In making a determination, the Illinois Commerce Commission may 
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decide that 2 wind energy conversion devices or systems are 
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under common ownership when the underlying ownership structure 
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contains similar persons or entities, even if the ownership 
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shares differ. Wind energy conversion devices or systems are 
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not under common ownership solely because the same person or 
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entity provided equity financing for the systems.
 
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    (35 ILCS 200/11-205  new)
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    Sec. 11-205. Method of valuation for wind energy conversion 
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systems.
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    (a) On or before February 1 of each calendar year, the 
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Illinois Commerce Commission must certify to the Department:

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        (1) name and address of each individual registered to 
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    produce electricity using a wind energy conversion device 
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    or system; and

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        (2) the nameplate capacity of each wind energy 
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    conversion system.

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    (b) Unless otherwise exempt under this Division 5, on or 
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before February 1 of each calendar year, the owner of a wind 
 


 






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energy conversion device or system must file a report with the 
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Department that identifies the total per kilowatt-hour of 
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electricity produced for each wind energy system during the 
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previous calendar year. The Department must prescribe the form 
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of the report. If an owner of a wind energy conversion system 
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subject to taxation under this Division 5 does not file the 
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report by the due date, the Department must determine the 
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kilowatt-hours of electricity produced based on the full 
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nameplate capacity certified by the Illinois Commerce 
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Commission.

 
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    (35 ILCS 200/11-210  new)
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    Sec. 11-210. Certification. On or before May 1, the 
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Department must certify to each chief county assessment officer 
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the amount of kilowatt-hours of electricity generated the prior 
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calendar year so that these amounts can be entered in the 
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assessment books. If a wind energy conversion system is located 
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in more than one county, the per-kilowatt hour of electricity 
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must be apportioned among the counties based on the actual 
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per-kilowatt hour of electricity generated in each county.
 
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    (35 ILCS 200/11-215  new)
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    Sec. 11-215. Valuation rate.  A wind energy conversion 
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system shall be valued at $0.35 per kilowatt-hour of 
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electricity produced by the system. The county must apportion 
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the value to each taxing district in which the wind energy 
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system is physically located in an amount equal to each taxing 
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district's respective portion of the aggregate value otherwise 
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assessed under this Code.
 

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    Section 99. Effective date. This Act takes effect upon 
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becoming law.