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Manufacturing Illinois Chips for Real Opportunity Act (MICRO)

MICRO Program Overview

The Manufacturing Illinois Chips for Real Opportunity (MICRO) Program is a business incentive program, centered on tax credits, that rewards businesses in manufacturing and high-tech industries for locating and growing in Illinois. Participating employers receive benefits, including provisions to retain income tax withholding, exemptions on utility taxes, corporate income tax credits, and credits for training new employees.

MICRO Program Requirements

Eligible applicants commit to minimum capital investment and job creation amounts starting at $2.5 million capital investment and the lesser of creating 50 jobs or 10 percent of the company’s worldwide baseline.

Qualifying companies committed to expanding in or relocating to Illinois from the following sectors are eligible to apply:

  • Microchip manufacturers
  • Semiconductor manufacturers
  • Microchips manufacturer
  • Manufacturers of component parts for microchips, semiconductors, or quantum computers
  • Companies engaged in research and development of quantum computers, semiconductors, or microchips

Projects within the Tier I category may receive benefits for up to 20 years, and projects within the Tier II category may receive benefits for up to 30 years.

Tiers Entities Capital Investment Threshold New Jobs Threshold
Tier I Semiconductor/Microchips/Quantum Component Parts/Research and Development $2.5M capital investment ≥ 50 new jobs or 10% of worldwide baseline, whichever is less
Tier II Semiconductor/Microchips/Quantum Component Parts/Research and Development $1.5B capital investment ≥ 500 jobs 
Semiconductor/Microchips/Quantum Component Parts/Research and Development $300M capital investment ≥ 150 jobs 
Converting or expanding existing manufacturing facility to these sectors $100M capital investment ≥ 75 new jobs (or new jobs equivalent to 10% of statewide baseline for taxpayer, whichever is less) 

MICRO Program Benefits

Depending on job creation and investment commitment, benefits of the program can last from 20 to 30 years and include: provisions to retain up to 100% payroll tax withholding or a portion of the company’s income tax liability, in addition to exemptions on utilities taxes, construction tax credits, and credits for training new employees. Local jurisdictions can also provide property tax abatement for the life of the agreement.

  75% Payroll Tax Withholding 10% Qualified Training Credit **50% Construction Job Credit .5% Credit on Qualified Investment 
Tier I 100% if project locates in underserved or energy transition area *Additional 15% if project hires recent Illinois graduates **75% if project locates in underserved or energy transition area Eligible
Tier II 100% if project locates in underserved or energy transition area *Additional 15% if project hires recent Illinois graduates **75% if project locates in underserved or energy transition area Eligible

* "recent Illinois graduates” include recent Illinois graduates, certificate holders or credential recipients from four-year public and private universities, community colleges, vocational/technical schools, Clean Jobs Workforce Network Program, and USDOL certified apprenticeship programs.

** requires a project labor agreement

*** Tier II applicants are also eligible for up to 30 years of Utility Excise Tax Exemption and Building Material Exemption from State Sales Tax for 5 years

The DCEO Team is available to provide a program and/or application technical assistance session with businesses that are interested in applying. Please reach out to CEO.MICRO@illinois.gov to schedule.

MICRO Toolbox

For more information, contact MICRO.CEO@illinois.gov

Awarded Project Agreements