Pritzker Proposes Two-Year Pause on Illinois Data Center Tax Credits

Overview

• The proposal would halt new data center tax credits for two years starting July 1.
• Gov. J.B. Pritzker directed state agencies to study impacts on the power system, household affordability, and the broader economy.
• The Democratic-led Illinois General Assembly must approve the measure before it can take effect.
• The Data Center Coalition warned the pause could deter investment, while the Illinois Clean Jobs Coalition endorsed the move.
• Rising power price pressures on the PJM grid and local pushback, including Naperville’s recent permit denial, frame the debate, as a separate POWER Act would require greater cost responsibility from data centers.