Data Center Investment Tax Exemptions and Credits

Data Center Investment Tax Exemptions and Credits

​The data centers investment program provides owners and operators with exemptions from a variety of state and local taxes for qualifying Illinois data centers. The program also provides data center owners and operators with a tax credit of 20% of wages paid for construction workers for projects located in underserved areas.

Eligibility

  • New and existing data centers and their tenants collectively making a capital investment of at least $250 million over a 60-month period.
  • The data center owner/operator and its tenants create at least twenty (20) full-time or full-time equivalent new jobs associated with the operation or maintenance of the data center.
    • Total compensation for these jobs must be equal or exceed 120% of the median wage paid to full-time employees in the county where the data center is located.
  • The data center must also be carbon neutral or attain certification under one or more green building standards.
  • In order to receive the construction employment tax credit, the project must be located in an underserved area based on certain statutory criteria.

Certification

  • Qualifying Illinois data centers must apply to the Department for certification for the program.
  • Certified data centers must enter into a memorandum of understanding with the Department
  • Containing statutorily-required terms and other terms deemed necessary by the Department.
  • The data center tax exemptions have a 20-year life span, which will result in 5-year increment certificates that are renewable assuming continued compliance with the relevant statutory, rule and contractual provisions by the data center.

Data Center Applications

For more information contact CEO.Datacenters@Illinois.gov