New legislation has been filed to ensure wind and solar energy companies are paying their fair share in property taxes, helping to reduce the burden on other property owners.

Senate Bill 2706, filed by Senator Sally Turner, updates the state’s outdated property tax valuation formula for renewable energy projects. The bill increases the real property cost basis used to assess commercial wind and solar energy systems, which determines how those properties are taxed.

Under current law, the base value for wind projects is set at $360,000 per megawatt of capacity and $218,000 per megawatt for solar systems. Senate Bill 2706 would raise those baselines to $588,000 for wind and $446,000 for solar beginning in tax year 2026. When the original valuation formulas were created, wind and solar were new and emerging industries, so the values were set at a lower level to help them grow.

Illinois’ property tax code currently establishes a uniform statewide method for valuing commercial wind and solar systems, based on their nameplate capacity and adjusted annually by an inflation-based trending factor. However, the base figures have remained stagnant for years, leading to lower tax bills for renewable developers compared to other property owners.

Senate Bill 2706 has been filed and awaits assignment to a Senate committee for consideration.