Pritzker pauses data center tax incentives in Illinois
Pritzker says the pause will give lawmakers and industry groups time to set guardrails on utility bills, water use and tax contributions.
- On Friday, Governor JB Pritzker directed the Illinois Department of Commerce and Economic Opportunity to pause processing new data center tax incentive agreements starting July 1, 2026, following legislative inaction.
- Legislators failed to pass House Bill 5513, known as the POWER Act, by the spring session deadline on May 31, which would have established environmental, water, and energy regulations for hyperscale data centers.
- Data centers' energy demand on the PJM grid has raised costs by $13 billion, while ComEd CEO Gil Quiniones noted grid requests have accelerated at an "exponential pace" since 2019.
- Climate Jobs Illinois and the Illinois AFL-CIO called the pause "shortsighted," warning it could shift investment and thousands of union jobs to Indiana, Kentucky, and Ohio.
- The Illinois Environmental Council and the Illinois Public Interest Research Group praised the framework's "direction," emphasizing data centers must be held accountable for their environmental and resource impact.
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Capitol Fa - Your Illinois News Radar » Pritzker unilaterally pauses data center tax break agreements in wake of legislative inaction, angers IBEW: ‘No governor is a king’CapitolFax.com
* Press release… Today, following inaction from the Illinois General Assembly, Governor JB Pritzker is directing the Illinois Department of Commerce and Economic Opportunity (DCEO) to pause processing agreements for the Data Center Investment Program starting July 1. The Governor also outlined a comprehensive framework for Illinois to address the growing impact of data centers on [...]
Gov. JB Pritzker suspends tax breaks for data centers, urges more discussion
In a surprise move, Gov. JB Pritzker announced Friday 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.
Gov. JB Pritzker puts pause on data center tax breaks after legislative effort stalls
Gov. JB Pritzker’s office will halt tax breaks that had been offered to incentivize the construction of data centers in Illinois, after state lawmakers failed to advance legislation reining in developments powering the artificial intelligence industry and driving up energy costs for residents nationwide.The Democratic governor directed the state Department of Commerce and Economic Opportunity to put a pause on processing applications for the tax…
RiverBender.com
Prezly.comGov. Pritzker Pauses New Data Center Tax Incentives
CHICAGO — Today, following inaction from the Illinois General Assembly, Governor JB Pritzker is directing the Illinois Department of Commerce and Economic Opportunity (DCEO) to pause processing agreements for the Data Center Investment Program starting July 1, 2026. 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 co…
Pritzker pauses data center tax incentives in Illinois
Illinois Gov. JB Pritzker (D) said Friday he is pausing the state’s data center tax incentives starting in July amid a push to address concerns about electricity costs and water resources that have plagued the AI infrastructure build-out nationwide. He directed state officials to pause agreements under the Data Center Investment Program, which exempted data…
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