Rep. Tom Demmer Joins Governor and Bipartisan Group of Lawmakers to Celebrate Data Center Incentives

State Representative Tom Demmer (R-Dixon) joined Governor JB Pritzker and a bipartisan coalition of lawmakers in Chicago on Monday to discuss how new data center incentives will help bring new jobs to Illinois and grow the state economy. The ceremony, held at the Digital Reality Data Center near McCormick Place, was also attended by business leaders, labor leaders, trade groups and existing data center business representatives.
“In today’s world, data centers are as critical a part of our infrastructure as our roads, trains and schools,” said Pritzker. “With the legislation I signed into law, we are welcoming a surge of economic development, labor income, and good union jobs to Illinois – and not just here in the established market of Chicago, but across our whole state.”
Illinois joins 30 other states with tax incentives specifically targeted at attracting data centers as part of expanded economic development efforts. It will bolster the industry in the Chicago region – the nation’s third largest data center market – and serve as a powerful tool to increase Illinois’ competitiveness and attract new businesses across the state. Data center investments will fuel new construction and create good paying jobs across the state.

“These incentives help give Illinois a competitive advantage in landing new data center projects,” said Demmer.” On top of high-speed fiber networks, competitive electricity rates, and open land for development, we now have tax incentives that will spur hundreds of millions of dollars in new investments. I was glad to work with business and labor, and both Republicans and Democrats, to help enact this exciting new program.”
The measure allows an exemption from sales tax for data centers who have or plan to make a $250 million investment in Illinois. If a data center is seeking an exemption for the construction or rehabilitation of its structure, the data center must require all contractors and subcontractors to comply with the responsible bidder sections of the Illinois Procurement Code. The measure also creates 20 percent income tax credit against wages if the investment by the data center is in an underserved area. The bill requires an annual report to the Governor and the General Assembly on the tax credit’s outcome and effectiveness.