Bill > SB0227

This bill amends the Illinois Income Tax Act to provide an additional income tax credit for data center investments in specific areas or developed by certain business enterprises. Starting in 2026, taxpayers who receive a credit from the Department of Commerce and Economic Opportunity for a qualifying Illinois data center located in a "qualified area" (which includes opportunity zones, R3 communities, or Disproportionately Impacted Areas) or developed by a minority-owned, women-owned, or disability-owned business can claim an extra 5% tax credit on their investment in qualified tangible personal property used in the data center's construction or operation. The credit is available for 5 taxable years after the property is placed in service and can be transferred according to departmental rules. Qualified areas are specifically defined to include opportunity zones and certain communities designated under cannabis regulation programs, while qualified business enterprises are those owned by minorities, women, or persons with disabilities. The bill builds upon existing data center employment tax credit provisions, offering an additional incentive for investments in economically disadvantaged or historically marginalized business communities.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=227&GAID=18&DocTypeID=SB&SessionID=114&GA=104