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Illinois Solar Equipment Sales Tax Exemption
Grantya researchSee program
Under the Climate and Equitable Jobs Act (CEJA, 2021) and subsequent legislation, Illinois provides a sales tax exemption for solar energy systems. Residential solar energy systems are exempt from the Illinois Retailers' Occupation Tax (6.25% state + local rates). Commercial solar equipment may also qualify under manufacturing equipment exemptions. Consult with a tax advisor for commercial applicability — the residential exemption is well-established; commercial applicability depends on specific use case and installation.
Program details
- Full Name
- Illinois Retailers' Occupation Tax Exemption — Solar Energy Systems (CEJA)
- Type
- state
- Client Type
- both
- Project Types
- solar
- Eligibility
- Solar energy system (panels, inverters, mounting, balance of system) | Residential systems: broadly exempt | Commercial: equipment used for generation may qualify under manufacturing exemption | Illinois-licensed installer typically handles tax documentation
- Status
- open
- Application URL
- https://tax.illinois.gov/
- Stackable With
- federal_itc_solar, section_48e, illinois_shines
- State
- IL
- Notes
- IL does NOT have a statewide solar property tax exemption (unlike IN, MN, WI, MO). Property tax treatment of solar in IL is county-dependent and generally not exempted. The sales tax exemption applies at point of purchase. Always recommend clients verify with their installer and tax advisor.
Source: Grantya research. Always confirm current terms on the official program page.