Solar Property Tax Exemption

As we’ve mentioned before, solar increases the value of your property. One way to make sure this is the case is to take advantage of Illinois’ solar property tax exemption.

What Is the Solar Property Tax Exemption?

As per Illinois Property Tax Code 35 ILCS 200/10-5, your solar system may be exempt from taxation, pursuant to the results of a special assessment.

How Do I Claim the Solar Property Tax Exemption?

This is not an automatic process. To request a special assessment, property owners need only file Form PTAX-330 with their county assessment office.

What Happens During a Special Assessment?

When a property owner files an Application for Solar Energy Assessment, your county assessor must determine two separate values:

• The value of home improvements as is, with the solar system.
• The value of home improvements if a traditional energy system were being used.

The lesser of these two values is the amount of the alternate valuation. Keep in mind, solar equipment carries the same value as traditional energy equipment.

What Equipment Is Eligible for the Exemption?

• Both active and passive systems are eligible.
• Equipment that would serve the same purpose in a traditional power system does not qualify.
• System parts that are not required to generate solar energy are excluded.