Rockford Sun

A new bill has been introduced in Illinois to revise the way wind and solar energy companies are taxed. Senate Bill 2706, filed by Senator Sally Turner and co-sponsored by Senator Dave Syverson, seeks to update the property tax valuation formula for renewable energy projects. The legislation aims to increase the real property cost basis used to assess commercial wind and solar systems, which would affect how much these properties pay in taxes.

Currently, Illinois law sets the base value for wind projects at $360,000 per megawatt of capacity and $218,000 per megawatt for solar systems. If passed, Senate Bill 2706 would raise those baselines to $588,000 for wind and $446,000 for solar starting in tax year 2026. The original valuation formulas were set when renewable energy was still a developing industry and were designed to encourage growth by setting lower values.

Illinois uses a uniform statewide method to value commercial wind and solar systems based on their nameplate capacity. This amount is adjusted each year according to inflation. However, the base figures have not changed for years. As a result, renewable energy developers have been paying less in property taxes compared to other property owners.

The bill has been filed and is waiting for assignment to a Senate committee before it can be considered further.

Senator Syverson has represented Illinois’ 35th Senate District since his election in 1993, succeeding Christine J. Johnson.