Solar Incentives

30% State rebate programs for Commercial and Residential, 50% for non-profit and public, up to $50,000.

30% rebate for the total amount of installation capped at $50,000 for any Solar Thermal or Photovoltaic system. System has to be UL listed and have a rated capacity of at least 1kW. Projects with total cost of $50,000 are ineligible. Please follow the link below for detailed information.
http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=IL05F&re=1&ee=0

30% Federal Tax Incentive as part of the Emergency Economic Stabilization Act of 2008, further expanded by the The American Recovery and Reinvestment Act of 2009.

30% tax credit with no capped amount for solar photovoltaic systems installed after 12.31.2008 until 12.31.2016. The tax credit is to be applied after the rebate from state or utility companies. Commercial systems have an option of a federal grant of equal amount instead of the tax credit. The grant will be paid within 60 days after the equipment is placed in service. Furthermore, unused commercial credits can be carried forward for up to 20 years if you did not have enough tax liability to take full tax credit in the year the system was installed. Commercial entities also receive taxable income deduction for depreciation of 85% of total system cost via a 5 year MACRS schedule. Currently Congress has authorized a “bonus” depreciation for 2008 and 2009 which allows companies to expense 50% of the depreciation basis in the first year. 50% of 85% = 42.5%
NOTE: Please consult your tax professional for any legally binding advice.
NOTE: Residential credit is IRS Form 5695 and for commercial its IRS Form 3468.

http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US02F&re=1&ee=1
http://seia.org/galleries/pdf/SEIATaxManual_v3-0_FAQ.pdf
http://www.irs.gov/pub/irs-pdf/p946.pdf

Residential and Corporate Energy Conservation Subsidy Exclusion

Each photovoltaic system is valued as a conventional energy plant and as a result, the owner of the plant owns the electricity it produces. Through the residential and corporate energy conservation subsidy exclusion, you do not have to pay any taxes on energy you produce.

Corporate: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US31F&re=1&ee=1
Residential: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US03F&re=1&ee=1

ISEA – Renewable Energy Credit Aggregation Program

Usually, only large scale renewable energy power plants are able to sell their Renewable Energy Certificates (REC hereafter). One REC equals 1,000 kWh and thanks in part to the Illinois Solar Energy Association, each system owner will receive $.06/kWh. Owner must become a member of ISEA in order to take advantage of the credit. ISEA bundles the kWh produced by all the owners in Illinois as RECs to be sold in Chicago Climate Exchange. Must check http://www.illinoissolar.org/ for annual compliance.

http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=IL36F&re=1&ee=1

Special Assessment for Solar Energy Systems

For tax purposes each solar energy system is valued at no more than a conventional energy system. Thus, adding to your property value. However, due to Special Assessment for Solar Energy Systems, you do not pay increased property taxes for the solar system you own. Please follow the link for instructions on how to take advantage of this tax exemption.

http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=IL01F&re=1&ee=1

NOTE: Please consult your tax professional for any legally binding advice.