Data Center Incentives Pass Illinois State Legislature

SPRINGFIELD, IL — The Illinois House and Senate have both approved a long-awaited bill that grants tax incentives to data center developers. Activists hope and expect that this legislation will put Illinois back in the data center development game, after falling behind neighboring states such as Iowa. If Governor J.B. Pritzker (D) signs the bill, the legislation will do the following: Exempts state and all locally imposed sales taxes on the tangible personal property for qualifying data centers Adds an additional income tax credit for the construction of new data centers in underserved areas of the state. Requires data centers to use project labor agreements on the initial build of the data centers as a precondition of receiving the credit. Requires any new and existing data center seeking a certificate of exemption must enter into an MOU detailing the agreement and would allow the state to claw back money if the data center doesn’t live up to the MOU. Qualifying data centers are defined as new or existing data centers located in Illinois; which make capital investment of $250 Million USD by the data center operator and the tenants over a 60 month period beginning Jan. 1, 2020; result in the creation of at least 20 employees over a 60 month period (with compensation of those jobs at or greater than 120% of the median wage paid in the county of the data center); and is carbon neutral or attains…