Bill > SB3944

This bill amends four Illinois tax laws—the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act—to create a new exemption for solar energy systems. Beginning January 1, 2027, tangible personal property purchased for the installation of a solar energy system that primarily provides electricity to a residential or nonresidential property will be exempt from these taxes. A "solar energy system" is defined as a complete assembly that uses solar energy to generate electricity, including solar panels, inverters, mounting hardware, and associated electrical components. To qualify for this exemption, the system must be used to offset the electricity load of the end user, with the additional electricity produced not exceeding 110% of the user's consumption in the preceding 12 months. Purchasers must complete a form at the point of sale to document their eligibility for this exemption, and both purchasers and retailers must retain this form for at least six years. This exemption aims to encourage the adoption of solar energy by reducing the cost of installing these systems.

Budget and Finance

https://www.ilga.gov/Legislation/BillStatus?DocNum=3944&GAID=18&DocTypeID=SB&SessionID=114&GA=104