Feature Articles

On June 5^th Gov. JB Pritzker announced that he is putting a pause on all new state tax incentives for data centers and calling on lawmakers to pass new data center reforms during the fall veto session.

Pritzker directed the Illinois Department of Commerce and Economic Opportunity to pause all new agreements starting July 1, fulfilling a proposal he made during his budget address earlier this year. The data center tax incentives have been in place as part of bipartisan legislation signed by Pritzker during his first year in office.

Existing incentive agreements under the Data Center Investment Program, including those entered into with DCEO before July 1, 2026, will be honored.

“The Governor also outlined a comprehensive framework for Illinois to address the growing impact of data centers on energy affordability and reliability, water resources, and local communities.”

“Illinois has an opportunity to continue leading in technological innovation and economic growth, but we also have a responsibility to protect working families and local communities as the data center industry rapidly expands,” Pritzker said.

“I am directing my administration to pause the processing of data center agreements while we continue working with the General Assembly and stakeholders on a comprehensive framework that protects affordability, safeguards our natural resources, and ensures responsible growth across Illinois.”

The move comes after lawmakers failed to pass House Bill 5513, known as the POWER Act, by the spring session deadline on May 31, following months of committee conversations and advocacy from environmental groups.