Bill > HB3565

This bill amends the Illinois Income Tax Act to provide an additional income tax credit for data center investments starting in 2026. Specifically, if a taxpayer receives a credit from the Department of Commerce and Economic Opportunity for a data center located in an opportunity zone or developed by a minority-owned, women-owned, or disability-owned business, they can claim an additional 5% tax credit on their investment in qualified tangible personal property used in the data center's construction or operation. The credit can be applied for five taxable years after the property is placed in service and can be transferred according to department rules. The bill defines key terms such as "qualified area" (an opportunity zone), "qualified business enterprise" (businesses owned by minorities, women, or persons with disabilities), and "qualified tangible personal property" as specified in existing state law. The credit cannot reduce a taxpayer's liability below zero, and any excess credit can be carried forward and applied to tax liabilities in the following five years. The bill aims to incentivize data center development in economically disadvantaged areas and support businesses owned by underrepresented groups.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3565&GAID=18&DocTypeID=HB&SessionID=114&GA=104