Categories: Chicago

Data Centers Recieve Credits & Incentives from Illinois

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.

Jackson Sorbo

Managing editor of the Chicago Morning Star

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