Illinois Governor JB Pritzker Signs New Law Promoting Tax Incentives for Data Center Construction

Published: October 10, 2019

CHICAGO, CITY OF (COOK) (ILLINOIS)Cloud ComputingCloud ComputingData CenterGeneral Government ServicesGovernorGOVERNOR, OFFICE OF THE (ILLINOIS)ILLINOISInformation TechnologyInformation TechnologyPolicy and Legislation

Gov. Pritzker and lawmakers celebrate bipartisan work to attract new data center construction in the state of Illinois.

Illinois now joins 30 other states with tax incentives specifically aimed at attracting data centers as part of its broader economic development efforts. This new legislation will serve as a helpful tool to increase the state’s competitiveness in this field and attract new data center businesses across the states, fueling new construction and job creation.

This measure allows for an exemption form sales tax for data centers who have made, or plan to make, a $250 million investment in Illinois. It also creates 20 percent income tax credit against wages if the investment by the data center is in an underserved area. This initiative was lauded by lawmakers in Illinois’ legislature on both sides of the aisle, which will push the state forward in the data center business and continue to build this vital industry within the state.