State Senator Sally Turner on wind energy taxes: ‘base value for wind is $360,000 per megawatt’

Illinois State Senator Sally Turner said Feb. 18 that the base value for wind energy projects in the state is $360,000 per megawatt, highlighting changes in property tax valuation formulas and their impact on local tax burdens.

The discussion centers on how current property tax assessments for renewable energy projects affect funding for local services and the distribution of taxes among property owners. The formula used to determine these values was established years ago and may no longer reflect present-day conditions in the energy sector, according to a Prairie State Wire podcast interview with Turner. The conversation addressed her legislation to update the property tax valuation formula for renewable energy projects and its potential effects on local taxing districts.

“So things have changed since then. And also there’s a calculation in how they get to this base value So the base value for wind is $360,000 per megawatt,” Turner said during the interview.

Illinois law sets the real property cost basis for wind energy devices at $360,000 per megawatt of nameplate capacity, a figure established in 2007 that receives annual inflation adjustments through a trending factor based on the consumer price index. Turner filed Senate Bill 2706 to raise this base value to $588,000 per megawatt beginning in tax year 2026; the same bill would increase the solar base from $218,000 to $446,000 per megawatt. The proposed change would increase tax payments from wind projects to local taxing districts such as schools and counties, according to the bill text.

Wind projects are often located on prime farmland in rural Illinois counties where property taxes fund essential services. Current low base values limit revenue generated compared to what agricultural use or updated valuations might provide. Raising these values would allow local governments to collect more revenue from large-scale developments without increasing taxes on homeowners and businesses, as reported in property tax policy analyses. Illinois assesses wind devices at one-third of their trended real property cost basis after depreciation, with a minimum taxable value set at 30 percent of the base.

Turner has served as state senator for Illinois’s 44th district since 2021 after being elected as a Republican replacing Bill Brady. She previously worked as a juvenile probation officer, Logan County Clerk and Recorder, and paralegal for the Logan County State’s Attorney. She holds degrees from both University of Illinois and Lincoln Christian University.

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FULL, UNEDITED TRANSCRIPT

Bryan Hyde: [00:00:00] Welcome to the Prairie State Wire Podcast. I’m Brian Hyde, and today I am joined by State Senator Sally Turner. She is the state senator for the 44th Senate District of Illinois. Um, it’s wonderful to meet you. Tell us a little bit about your background and then let’s, let’s talk a little bit about a particular, uh, a particular piece of legislation that, that you are, are working on.

Sally Turner: Sure. Thanks Brian. Um, I am in going in my fifth year being in the Senate. I’m from the 44th district, which is all or parts of 10 counties that are in central Illinois. Um, I come from Logan County where I was county clerk and recorder for six terms. Um, and love that job, but it was time to. And give that to, so, uh, I’m also married.

My husband is a retired appellate Justice John Turner. And I have, and my, and son, me. Grandchild. Grandchild, my very first one and only one. So that’s [00:01:00] a big deal for me. I drive up and down I 55 whenever I’m able to. They live up in the Burridge area. So that’s just a little bit about me. Um, I, I, I’m very involved in things that, um, had affected my county in the past as a county clerk.

Uh, it’s, it’s a multifaceted job. You do taxes recording. Vital records, uh, tax extension bills, uh, uh, in elections. So that’s a really well-rounded office to learn a lot, uh, little things about that are going on in that office. 

Bryan Hyde: Talk to me about Senate Bill 27 0 6. I know that, uh, for some people it’s just a number, but there’s, there’s a reason for this legislation.

What, what is the title of, of this piece of legislation? 

Sally Turner: Uh, I don’t even know if we had a name of it. Oh, I don’t remember. Um, in that case, basically give it, if 

Bryan Hyde: [00:02:00] you were to give it a title, what would you call it? 

Sally Turner: Um, renewable energy Pay their fair share. I guess that, and let’s, 

Bryan Hyde: let’s talk about that. ’cause Okay.

Look, re renewable energy is, uh, obviously it’s, it’s. It’s something that has, has great support at the federal level as well as at the state level. Lots of incentives have been offered to wind and solar companies. Right. Um, let’s talk about, uh, the, the downside of that. I think most people would agree, yeah, clean energy is a good thing, but if it’s coming on the backs of the taxpayers, tell me why, why that’s not necessarily Sure.

Sally Turner: And you’re right. I think most people, uh, look for a well-rounded way to, um, supply energy to the people of the state of Illinois. And that’s great. We need that. But let’s just take for example, um, wind, when wind started here and they started assessing wind was in 20, yeah. 2007. So they haven’t looked at this factor, this base value and the factor since that [00:03:00] date.

And that’s been 18 years ago. So things have changed since then. And also, uh, there’s a calculation in how they get to this base value. So the base value for wind is, uh, $360,000 is their, uh, per megawatt. Capacity. That that’s, that’s what it is. Now, we understood back when they negotiated that amount of money back in 2007, that that was, um, something that they talked to the assessors about and, you know, the assessors should probably have the, um, the best idea of what they should assess that at.

The assessors were quite a bit higher. The assessors act asked for an amount of 588,000 per megawatt. Mm-hmm. So that’s a difference. Quite a bit of difference, like 200 some thousand dollars difference on a base. So looking at that, since it’s been back from 2007, [00:04:00] that calculation has a lot of things that go into it.

And I don’t wanna get into the weeds with you on the calculation and how it’s all done, but there’s, there’s a formula that’s created that’s added on top of that base value. And then, um. There’s another step that happens with, um, the reduction in the CPI and things of that nature. But really what I’m getting at is the base value.

So that base value per megawatt needs to be increased. And what that’ll do is that will make, uh, wind and solar pay more. Take up more of the assessed valuation. Now, when they take up more of that assessed value, that will either stop a rate increase for other people’s taxes, or it’ll decrease their rate.

It won’t go up, it’ll go down. So when we’re always looking for something that’s going to help our taxpayers, this is something that can help our taxpayers. We know that wind and solar [00:05:00] already have their, their feet well planted in, uh. Our, just looking around at Logan, I have, I have Logan Det, Hyatt, McLean, uh, I’m trying to think.

And of those counties that I represent, especially Logan, they’re inundated with windmills and solar, so we know what’s out there. We know they’re doing their thing, but you know, it’s time you pay your fair share and. Help reduce our taxes. That’s something that everybody’s asking us about all the time.

How do we get our taxes, property taxes lower? Well, this is one way. 

Bryan Hyde: What were the incentives, or what was the thinking behind the incentives in the first place that that gave these tax breaks to green energy or renewable energy companies 

Sally Turner: originally? 

Bryan Hyde: Yeah, 

Sally Turner: there I, I’m sure, I mean, I wasn’t around when that occurred, but I’m sure it was so that they could get.

Established their feet on the ground, which I mean that makes sense. I understand that. But it’s [00:06:00] been 18 years since we evaluated wind and I think it was seven, seven years since we evaluated solar. So we know they’re all doing okay. We know they’ve all gotten, you’d mentioned earlier, um, some kind of help in some form or manner, and we’re still helping them, um, on the state side as well.

But it’s, it’s time. We take a hard look at that and I don’t know why we wouldn’t want to, I mean, anything that helps our taxpayers, uh, in, in times of need like we’re having right now, I think is the right thing to do. 

Bryan Hyde: And, and Senator Turner, just to make sure I’m, I’m tracking correctly too. When we talk about the taxpayers most being affected, we’re talking about those who pay property tax.

Is that correct? 

Sally Turner: That is correct, exactly. 

Bryan Hyde: So, um, help, let’s put this into perspective. Um, how, how heavy a load do Illinois property tax owners carry? Is, is Illinois considered, you know, um, is it, is it a high property tax state [00:07:00] compared to, I know some states don’t even have property taxes. They may, we’re 

Sally Turner: either number one or number two in property taxes and we have the most, uh, taxing districts of anyone else in the United States.

That doesn’t mean that, um, everyone’s not doing what they need to do. And I, I’m not, I’m not saying that at all. But what I’m saying is, um, there’s ways to reduce our, our, our tax bill, and that’s one of the number one things that people ask every year. They get that and say, how on earth can my taxes be this high?

What’s, you know, what’s going on? Well, you, we need to spread that out. See the increases that happen, and I don’t wanna get too far in the weeds, but with a taxing district, when they submit their levy. They can submit it if you’re in a tax cap county up to um, whatever the CPI is, or 5%. Counties that don’t have tax caps can make it up go up to 5%, but the calculation for the base and wind and solar is [00:08:00] different than that.

There’s a calculation that starts for them back in for wind, it’s back in 2007. And they take that base that it was in 2007 and add a CPI and it subtract a number and sometimes what it was back in 2007 will make their taxes lower the next year. So it’s, it’s, it, it all needs to be restarted all over again.

Bryan Hyde: And does this, does this require, um, a reevaluation of, of green energy policy within the state? I, I, I’m curious to what extent, uh, the, the green energy or renewable energy industry, um, you know, what kind of influence does it wield, you know, within the legislature in terms of, does it, I assume it has lobbyists that, you know, uh, are there to help represent its interests?

Sally Turner: Oh, and I’m sure there are, I haven’t heard from many, uh, which I find quite interesting. Um, but, uh, I, I will say that I think there’s, uh, interest in [00:09:00] energy policy right now because we think we may be seeing that in the upcoming session or maybe in January. But they also have talked about in that energy, uh, bill, about how they’re going to value battery, battery facilities and they don’t have that yet.

So this would be a perfect time to be able to evaluate all of it, um, if they’re going to do this energy bill. 

Bryan Hyde: Um, let me ask you this. In, in terms of, uh, getting away from fossil fuels, and I know that ultimately that’s the goal, right? You know, zero emissions and, you know, uh, carbon neutral and so forth.

But, um, realistically, uh, do, do the fossil fuels, uh, still contribute greatly to, you know, the states. Meeting the state’s energy needs. Um, I’m, I’m curious, how much does wind and solar compare to, you know, the traditional fossil fuel energies? 

Sally Turner: I believe one is 2%, and that is solar and wind might be 10%. Wow.

The rest is, [00:10:00] um, fossil fuels and nuclear. Nuclear is a place, a big part of it. 

Bryan Hyde: And, and for that matter, I, I guess, could I ask, um. Where does Illinois stand in terms of, uh, the ability to generate power through, through nuclear power? 

Sally Turner: Sure. Yeah. We just, um, we just had some good news in Clinton that, uh, uh, there’s a, uh, there’s a company that’s going to continue to help them keep running over the next 20 years, so that was a plus.

Uh, but there’s still legislation out there. I believe the, the modular, uh, they’ve lifted the ban on, on, uh. Nuclear in this energy bill. That’s what one plus, uh, Senator Sue resin has a bill on, uh, the modular nuclear uh, facilities. That’s something I don’t think has happened yet. Um, but I think it’s time we take a hard look at that as well.

I mean, if, uh, it’s good clean energy. Um, and I, I think it’s kind of one of those past things where you think a Homer Simpson and, and, uh, [00:11:00] yeah. What it was like there and like how bad it could be. Well, we know things have changed and, uh, the, the ideas are different and. Their, uh, facilities are, are run very well, and, uh, if you’ve ever had the opportunity to take a tour of one, it’s really, really interesting.

Uh, like I said, I have one in my district, 

Bryan Hyde: so, um. How much autonomy does, how much autonomy do Illinois lawmakers have to, to create policy? And I guess in this case it’s probably pretty absolute ’cause it’s taxation we’re talking about. But I, I’m curious, do, is there pressure from above in terms of, from the federal government trying to exert its energy designs or its energy goals?

Um, and, and get states to tow the line in, in terms of, you know, renewable energy? 

Sally Turner: Sure. I think we saw that reflected in the past administration. Very much so. Um, and then in this administration, federally, um, I think there’s some, uh, headway that it’s, they don’t want it as [00:12:00] much and they want more fossil fuel and more drilling and things of that nature, which I, I’m sure you know.

Um, but in Illinois there’s still pushing toward that, uh, date to change fossil fuel and, uh, carbon emissions and things of that, that nature. Um. We need more natural gas, we need more, um, um, nuclear and I, I think if we bring all those things together, then we can have what we need to get by. You know, we can’t cut back on things and supplement them with, um, energy sources that aren’t going to help us or aren’t gonna continue to, to, uh, give us, uh, the answer to our needs that we have.

Bryan Hyde: Um, by the way, I, I’m, I’m hearkening to an article here, uh, from W-A-N-D-T-V, uh, talking about, uh, Senate Bill 27 0 6. But, um, it’s the, is it the Clean Grid Alliance is sounding the alarm saying, oh my goodness, this would nearly double property taxes. This would devastate, devastate the renewable energy industry.

Um, [00:13:00] I mean, they. It sounds like they, they understand they’ve had a good deal. Go. Absolutely. 

Sally Turner: You hit the nail on the head and they have had a good go of it. It’s, it’s time that they take a hard look. Let’s take a hard look and see if we can bring those individual taxpayers bills down. And this is ridiculous.

And, and we’ve given ’em all kinds of subsidies all along, and they’re still getting subsidies. So Yeah, you’re right. And they’re, I’m sure concerned that somebody’s taken a look at this. 

Bryan Hyde: So, where do you go from here? You the, the bill was just filed within the last, uh, couple of weeks. 

Sally Turner: Mm-hmm. 

Bryan Hyde: Where, where does it go from here?

Sally Turner: I need to go visit, uh, well, first of all, I’ll, I’ll talk more with my, um, caucus, which we’ll be back in tomorrow, but I’ll go across the aisle and visit with some of them on the other side and say, this is good legislation. Jump on this with the, you know, help me promote it so we can get it in committee.

And also we’re gonna do some outreach to our community. Um, I know in central [00:14:00] Illinois they have had it. With, um, uh, wind and solar, they’re just done with it. And, um, I, I think if we reach out to those individuals and they’ll do a lot of, uh, calling to get the bill, uh, to go to committee. 

Bryan Hyde: Once again, we are visiting with Sally Turner.

She is the state senator for the 44th Senate District of Illinois. Um, thank you so much for visiting with us today on the Prairie State Wire Podcast. Is there a website where you would direct people to either get more information or to get in touch with you? 

Sally Turner: Sure, well they can go to my website, the state website.

It’s just Sally Turner, uh, 44th District, Sal Turner, state Senator, 44th District. Um, but they’re welcome to call my office anytime I’m having to visit with anyone, uh, and email my office as well. Um, they can do that under the Turner email, which is a link, uh, on my website, and also they can follow me on Facebook.

Bryan Hyde: And once again, state Senator Sally Turner. Thank you for joining us on the Prairie State Wire Podcast. 

Sally Turner: You’re welcome. [00:15:00] Thanks for having me.