Gov. Pritzker Directs Two-Year Data Center Incentive Pause

On June 5, Gov. JB Pritzker announced a two-year pause on state tax incentives for data centers. He instructed the Illinois Department of Commerce and Economic Opportunity to pause processing agreements for the Data Center Investment Program effective July 1, 2026, while clarifying that existing agreements will continue to be honored. The program was created in 2019 and provides qualifying data centers with exemptions from various state and local taxes to encourage data center development across the state.

 

Qualifying data centers are eligible for exemptions under the Retailers’ Occupation Tax Act, the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Chicago Use Tax. In underserved areas, data center owners or operators could also receive a credit equal to 20% of the wages paid to construction workers on the project. From 2020 to 2024, 27 data centers received more than $983 million in incentives under the program. Due in large part to state incentives, Illinois ranked third among states in total data center projects in 2023, according toSilicon Report, but it has since dropped to seventh.

 

Although the moratorium was initially proposed as part of Gov. Pritzker’s FY 2027 budget proposal in February, it was not included in the enacted FY 2027 budget package. Gov. Pritzker’s June moratorium announcement came after the Illinois General Assembly failed to pass the Protecting our Water, Energy, and Ratepayers Act, or POWER Act (HB 5513/SB 4016), or any other meaningful changes to data center regulation. Instead, Gov. Pritzker issued the moratorium unilaterally. The Governor’s Office has defended the moratorium on the grounds that it has administrative authority over application processing, but the pause could be subject to litigation if a party argues that the governor exceeded his executive authority.

 

In a June 5press release, Gov. Pritzker called on legislators to pass comprehensive data center reforms during the fall veto session. He said those reforms should be based on the principles that data centers should pay their fair share of electricity costs; energy reliability should be prioritized for Illinois working families and businesses; data centers should support the development of new clean energy resources; Illinois water resources should be protected; strong clean air standards should be maintained; and Illinois communities should have greater transparency and a meaningful voice in data center policies.

 

Illinois is not the only state looking to roll back data center exemptions. Arizona enacted a three-year moratorium on tax exemptions for data centers as part of its FY 2027 budget on June 13. Texas, Virginia, Georgia, and Indiana are also considering legislation that would reduce tax incentives for data centers.

 

Important Upcoming Dates – Statewide

November 3– Illinois General Election

November 17-19– Veto Session Week 1

December 1-3– Veto Session Week 2

 

In the News

Supreme Court ruling in Roundup case is a major blow for agricultural states like Illinois, advocates say–Chicago Tribune, June 25, 2026

The U.S. Supreme Court on Thursday sided with pesticide manufacturer Monsanto in a closely watched Roundup case, ruling that federal law overrides state claims that the company failed to warn consumers about cancer risks associated with its products.

 

Doody appointed to fill Illinois House vacancy–WPSD Local, June 25, 2026

Scott Doody was unanimously appointed Thursday to fill the vacant 118th District seat in the Illinois House of Representatives, allowing him to begin representing the district immediately.

Independent Collin Corbett to remain on ballot after Bailey camp withdraws objection–Capitol News Illinois, June 24, 2026

Records examination found Corbett with more than 2,000 signatures above requirement

New Illinois laws go into effect on July 1, 2026. Here’s what’s changing–WCIA, June 23, 2026

New laws in Illinois — which will usher in changes ranging from how seniors renew their driver’s license to changing the definition of cyberbullying — take effect on July 1, 2026.

Gov. Pritzker is leading Chicago fundraiser for Senate candidate and rising Democratic star James Talarico–Chicago Sun-Times, June 23, 2026

Talarico, a Texas state representative who is widely seen as a fast-rising Democratic star, is trying to become the first Democrat to win a statewide seat in deep red Texas since 1994. The general election race — which is seen as the Democrats’ best chance to win a Senate seat in a deeply red state — is expected to be one of the most expensive Senate contests in the country.

State Sen. Linda Holmes, an Aurora Democrat, to retire at the end of current term after 20 years–Chicago Tribune, June 22, 2026

Holmes was slated to run for reelection later this year, after securing the Democratic nomination in March, when she ran unopposed. Now, the Aurora Democrat will be withdrawing her name from the November ballot as she plans to finish out the remainder of her current term, which extends until January.

Federal cuts are hitting Illinois food assistance recipients — and the farmers who feed them–Capitol News Illinois, June 19, 2026

President Donald Trump’s “One Big Beautiful Bill” severely impacted two of Illinois’ most economically vulnerable groups: the hundreds of thousands of Illinoisans set to lose Supplemental Nutrition Assistance Program food assistance this year and the small farmers who are losing them as customers.

 

Illinois drivers could face higher tolls next year–Chicago Tribune, June 18, 2026

The Illinois State Toll Highway Authority on Thursday proposed its first passenger toll hike since 2012. The proposal, which would increase passenger vehicle tolls by roughly 45 cents for I-Pass users, comes on the heels of the state’s landmark public transit funding bill, which called for the same toll increases. Commercial vehicle tolls would increase by 30% for I-Pass users.

 

Eye On Illinois: Prosecutorial discretion now on display for high-profile ComEd defendants–Shaw Local, June 18, 2026

Prosecutorial discretion often is a local issue. State’s attorneys’ offices in each county choose which (if any) charges to bring, make pretrial release recommendations and negotiate plea deals. The lead official in each county is accountable at the ballot box every four years, but most do the bulk of their work outside public courtrooms.

Task force pitches long-term Chicago budget fillers, but many need state buy-in–Chicago Tribune, June 25, 2026

With the city facing a budget hole estimated at $680 million or more next year, a mayoral task force released its final proposals to strengthen Chicago’s long-term financial future Thursday.

 

Progressive wins rev up Johnson–Politico, June 25, 2026

Springfield may be out of session, but the campaign trail is very much open for business.

 

Mayor’s $3 Billion Parking Meter Offer Was $800 Million More Than The Next Highest Bid, Investor Says–Block Club Chicago, June 25, 2026

The mayor’s office has said a confidentiality agreement prevented them from sharing bid details, but private companies involved said the agreement has been waived “for some period of time.”

CHA’s Matthew Brewer joins the race for mayor–Chicago Sun-Times, June 25, 2026

Brewer, a CHA board member, said he has had a “front row seat to the dysfunction” at Brandon Johnson’s City Hall during his months-long power struggle with Johnson for control over the CHA. It demonstrated that Johnson is not the “collaborator-in-chief” that he claims to be.

Cook County sheriff signals support for dedicated transit law enforcement agency–Chicago Tribune, June 25, 2026

Cook County Sheriff Tom Dart, whose police officers have been deployed on the CTA for several months, said Wednesday that a dedicated police force should be responsible for law enforcement on public transit. 

Illinois Gov. JB Pritzker open to calling special session for bill to keep Chicago Bears in Illinois–CBS News,June 23, 2026

Gov. JB Pritzker said he is open to calling a special session if lawmakers bring him a stadium bill that would keep the Chicago Bears in Illinois.

Bears taking advice, but haven’t put forward specific stadium plan, Pritzker says–Capitol News Illinois, June 23, 2026

Illinois still in the mix for Bears stadium despite team shifting focus to Indiana.

County projects $550M 2027 budget gap, highest in 16 years–The Daily Line, June 22, 2026

Cook County is facing an estimated budget gap of $550.7 million heading into the 2027 fiscal year, according to a preliminary forecast released last week.

Southeast Side, or Hammond, should beat Arlington Heights for Bears–Chicago Sun-Times, June 22, 2026

Chicago should fight to keep the Bears. The Bears have said Arlington Heights and Hammond, Indiana, are the only viable sites and have taken another step toward Hammond. City Hall still insists Chicago remains in the running through its lakefront proposal.

Editorial: The question every Chicago mayoral candidate must answer now–Crain’s Chicago Business, June 22, 2026

Chicagoans will choose the city’s next mayor in February, and their options are beginning to take shape. A few candidates have already made the leap, declaring they’ll take on Mayor Brandon Johnson as he seeks re-election, while others pad their war chests and stoke speculation about their intentions.

 

Visitors explore the Obama Presidential Center museum on opening day–Chicago Sun-Times, June 19, 2026

Some were wowed by the feeling of sitting behind the desk in the Oval Office replica. One visitor thought of all the people who helped build the place — because she’s married to one of them. And still others were just overwhelmed by remembering what the election of the first Black president meant to them, and to the country.