Agricultural land values for Illinois property taxes are determined by the land’s expected contribution to farm income based on the productivity of the soil. In a parallel sense, Illinois bases the assessed value (property value for tax purposes) of large-scale renewable energy projects on their electricity-generating potential, called nameplate capacity. The assessed value for these projects is determined by a per-megawatt rate that is set at the state-level, which is then adjusted annually to account for inflation. The per-megawatt rate for solar energy is $218,000 per megawatt (MW) of nameplate capacity, while the rate for wind is $360,000 per MW. As the property ages, depreciation is also subtracted from the value.
In Illinois, most real property (land and buildings) is taxed at one-third of its assessed value, including renewable energy projects and agricultural land. If a property is used for both agriculture and renewable energy, it is valued according to the proportion of each use. Wind and solar projects then pay taxes to local government units—like counties, townships, and schools—according to local tax rates.
Click on the button above to understand the tax impacts for wind and solar projects. Note that all values are estimates.
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