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Incentives and Tax Credits

Illinois Expands Business Incentives in 2024

In 2025, Illinois enacted a suite of forward-looking legislative enhancements to its incentive and tax-credit portfolios, reinforcing our commitment to grow companies, attract new investment, and cement the state’s position as a leader in the nation’s economic growth. 

“2025 Enhanced Incentives” underscore Governor Pritzker’s dedication to the vitality and strength of our economy making Illinois the premier destination for business innovation and growth. 

Updates by Program:

 

 Advancing Innovative Manufacturing (AIM)
New Program
  • A new tax-credit initiative designed to accelerate manufacturing projects that integrate cutting-edge technologies into their processes.
  • Capital-focused eligibility tailored for projects undertaking substantial capital improvements.
  • Simple credit tiers:
    • 3% credit on qualified investments of $10 million–$50 million
    • 5% credit on qualified investments of $50 million–$100 million
    • 7% credit on qualified investments exceeding $100 million
  • Flexibility in timing allows eligible investments over a five-year period.
 
Illinois Apprenticeship Education Expense Tax Credit

Inclusivity in accredited training institutions 

Simplified credit award

Clarifies instruction expenses

  • $3,500 Credit for Each Eligible Apprentice

  • Support for Specialized Training

  • Expanded Eligibility for Training Costs
High Impact Business
Expanded eligible sectors & removed barriers to growth
  • High-Voltage Direct-Current (HVDC) converter stations are now recognized as a High-Impact Business (HIB) eligible sector.
Reimagining Energy and Vehicles (REV)
Expanded eligible sectors to include hybrid vehicles and nuclear power generators 
  • To support a broader range of industries, REV eligible sectors now include electric and hybrid vehicle and parts and charging equipment manufacturers, electrical transformer manufacturers, and nuclear energy technologies and products manufacturers.
Economic Development for a Growing Economy (EDGE)
New tier level for large projects

  • New Tier II program that will provide 15 years of program benefits for applicants who commit to a minimum $50 million in capital investment and 100 new jobs.

  • Tier II qualifying projects, startups, and businesses in qualifying industries meeting job retention and investment thresholds can now elect withholding credits.

 
Rivers Edge Redevelopment Zone expansion
New RERZ nominees
  • The following cities are included as pilot nominees for new RERZs:  Sterling and Alton

Illinois offers tax-based incentives to help your business create jobs and invest in Illinois. For an overview of our programs and to discuss your options, contact us at https://dceo.illinois.gov/dceo-program-inquiry.html.

Other changes include additional funding of grant programs scuh as Prime Sites and continued support for the Closing Fund, Manufacturing Training Academies (MTAs) and Employer Training Investment Program (ETIP).

Information on Incentives and Programs

Manufacturing Illinois Chips for Real Opportunity Act (MICRO)

The Manufacturing Illinois Chips for Real Opportunity Act (MICRO) provides incentives for manufacturers of microchips and semiconductors as well as component parts manufacturers in this high-tech sector.
Reimagining Energy and Vehicles Program

The REV Program provides companies engaged in R&D and manufacturing of electric vehicles (EV), renewable energy, green steel, and their associated component parts with diverse incentives. 

Illinois Angel Investment Credit Program

The Illinois Angel Investment Tax Credit Program encourages investment in innovative, early-stage companies to help companies obtain working capital needed to grow in Illinois
Economic Development for a Growing Economy Tax Credit Program (EDGE)

The EDGE Program provides annual corporate tax credits to qualifying businesses to help create jobs, investment and training programs in Illinois
EDGE for Startups

The EDGE for Startups Program provides annual withholding tax credit to newly formed businesses to help create jobs, investment and training programs in Illinois
Data Centers Investment Program

The Data Centers Investment Program provides owners and operators with exemptions from a variety of state and local taxes for qualifying Illinois data centers
Film Production Tax Credit

The Illinois Film Office, located in the Illinois Department of Commerce & Economic Opportunity, offers a 30% tax credit to film in Illinois
High Impact Business Program

Projects that invest $12 million and create 500 full-time jobs or invest $30 million and retain 1,500 full-time jobs may be eligible for tax credits to help expedite their growth
Illinois Opportunity Zones

Illinois Opportunity Zones provide an incentive for investors to invest in areas that need investment to help create jobs and investment
River Edge Redevelopment Zone Program

The River Edge Redevelopment Zone Program helps revive and redevelop environmentally challenged properties adjacent to rivers in Illinois
Blue Collar Jobs Act Tax Credit Program

The Blue Collar Jobs Act (BJCA) program supports large-scale economic development activities by providing corporate income tax credits to companies that make substantial capital investments in Illinois.
Illinois Apprenticeship Education Expense Tax Credit Program

Effective January 1, 2020, employers are allowed a tax credit for qualified educational expenses associated with qualifying apprentices
Illinois Historic Preservation Tax Credit Program

River Edge Historic Tax Credit Program provides state income-tax credit equal to 25% of a project’s qualified expenditures to owners of certified historic structures
Prime Sites Capital Grant Program

Assists companies with large-scale capital investment projects that commit to significant job creation for Illinois residents
Illinois New Markets Development Program
Illinois Enterprise Zones Program

The Illinois Enterprise Zone Program stimulates economic growth and neighborhood revitalization in economically depressed areas of Illinois through state and local tax incentives, regulatory relief and improved governmental services
Local Journalism Sustainability Tax Incentive Program

The Local Journalism Sustainability Tax Incentive Program offers financial support to help organizations hire and retain qualified journalists
Music and Musicians Tax Credit and Jobs Act

The Music and Musicians Tax Credit and Jobs Act provides tax credits to qualified music companies that produce, distribute, or promote music in Illinois, incentivizing job creation, economic growth, and diversity in the music industry, while supporting the recovery of the live entertainment sector post-pandemic.