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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