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Incentives and Tax Credits

Illinois Expands Business Incentives in 2024

In 2024, the State of Illinois continues to offer innovative business incentives in order to attract and retain job creators looking to locate or expand their business in Illinois. New changes include:

Additional funding of grant programs including Prime Sites and continued support for the Closing Fund.

 

Quantum Campus Enterprise Zone
New incentive program

  • Creation of the nation’s first ever Quantum Computing Campus 

  • $500 million capital appropriation for quantum technology 

  • Broad range of incentives including Building and Materials Tax Exemption (BMEC) and Utility Tax Exemption

  • Potential to increase incentive offering through participation in MICRO program including additional tax credits and construction job credits
Blue Collar Job Act, High Impact Business, River’s Edge Redevelopment Zone, Enterprise Zone, EDGE, MICRO, and REV Construction Job Credit
Simplified reporting process

  • Eliminate monthly Certified Payroll reporting

  • New process relies on annual progress reports and a third-party audit report performed at the conclusion of the project 
Reimagining Energy and Vehicles (REV)
Eligibility for new manufactures, companies engaged in R&D, and extension of the utility tax exemption

  • Expanded eligibility to include manufacturing of new products: green steel manufactures; eVTOL aircraft, hybrid-electric, and fully electric propulsion systems for airliners manufactures and component part makers; component part makers for renewable energy system

  • Research and Development (R&D) eligibility for companies working toward the innovation, introduction, and improvement of renewable energy systems, electric vehicles, electric or hybrid aircraft, and associated component part makers

  • Extension of Utility Tax Exemption for Tier II program participants – potential 30-year exemption (previously capped at 10 years)
Manufacturing Illinois Chips for Real Opportunity (MICRO)
Expanded eligibility to support quantum computing manufactures, companies engaged in R&D, and extension of the utility tax exemption

  • Clarification of eligibility to amplify incentive opportunities for quantum computer manufacturers and their component part manufactures 

  • R&D eligibility for companies engaged in innovation and improvements to the manufacturing of quantum computers, semiconductors, or microchips 

  • Extension of Utility Tax Exemption for Tier II program participants – potential 30-year exemption
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
Research and Development Tax Credit
Continued support for the R&D tax credit
  • 5-year extension of the Research and Development Tax Credit to 2032
Rivers Edge Redevelopment Zone expansion
New RERZ designations
  • The following cities are included as pilot sites for new RERZs: Moline, East Moline, Quincy, LaSalle, Ottawa, Peru, and Rock Island

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.

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.