Illinois

Data Center Investment program tax exemptions and credits

Incentive or explicitly supportive policy

In effect This instrument is recorded as currently in effect as of the dataset date.

Scope

Section 605-1025 of the Illinois Department of Commerce and Economic Opportunity Law (20 ILCS 605/605-1025) directs the Department to issue certificates of exemption from state and certain locally imposed sales and use taxes, and a credit certification against Illinois income tax, to qualifying Illinois data centers. A new data center, or an existing data center making an upgrade, qualifies by making a capital investment of at least $250,000,000 over a 60-month period beginning on or after 1 January 2020 (the section also sets a pre-2020 investment test for existing centers), creating at least 20 full-time or full-time equivalent new jobs over 60 months with total compensation of at least 120% of the county average wage, and certifying within 2 years after being placed in service that it is carbon neutral or holds a listed green building certification. A certificate may not exceed 20 calendar years, and the Department may not issue new certificates after 1 July 2029.

Geographic scope
Illinois
Jurisdiction
State
Authority type
Legislature
Issuing authority
Illinois General Assembly

Dates

Adopted
No adoption day is recorded
Effective
Several dates apply; see the source
Scheduled expiration
See completion condition
Ended
Not recorded as ended
Completion condition
The section bars new certificates of exemption after 1 July 2029 and says that sunset does not affect certificates in effect on that day. Each certificate may run no longer than 20 calendar years. No program-wide expiration is stated.
Source document
16 June 2026
Last checked
23 September 2026 (earlier than tracker date 5 October 2026; not an automatic status change)

Summary

Illinois law at 20 ILCS 605/605-1025 sets up the Data Center Investment program. The Department of Commerce and Economic Opportunity issues certificates of exemption from state and certain local sales and use taxes, and income tax credit certifications, to data centers that meet the section's investment, job, wage and carbon-neutral or green-building conditions. The compiled section, whose source note cites Public Act 104-468 effective 16 June 2026, bars new certificates after 1 July 2029 while leaving existing certificates in place. The Department's statement that it stopped processing applications on 1 July 2026 is a separate record.

What this does not establish

  • The compiled section's source note cites only the latest amending act, Public Act 104-468, effective 16 June 2026; that date is stored as the document date. The day the program first took effect is not printed on the opened page, so no single effective date is stored.
  • The Department's statement that, at the Governor's direction, it stopped processing applications on 1 July 2026 is a separate record; the compiled section does not mention it and it does not repeal this section.
  • The 1 July 2029 date ends issuance of new certificates only; it is not an expiration of certificates already issued.
  • The section's data center definition is also used by the backup generator permit standards in the separate record il-pa-104-0458-crga-data-center-backup-generator-permits.
  • The record does not establish that any named facility holds a certificate.

Unresolved questions

  • Whether the General Assembly will amend the section to reflect the 1 July 2026 stop in processing applications was not established.

Relationships

Supersession means a later instrument replaces the earlier legal effect. Repeal links identify the repeal instrument and the measure it ends. A later implementation or related letter is not treated as a replacement unless the record says so.

Sources

Primary source

https://www.ilga.gov/documents/legislation/ilcs/documents/002006050K605-1025.htm

    Back to the policy tracker ยท Illinois policy module