Data center laws in Illinois

Amends the Use Tax Act and the Service Use Tax Act. Contains provisions concerning marketplace facilitators. Extends the Manufacturing Machinery and Equipment Exemption to production related tangible personal property. Provides that the term "production related tangible personal property" includes certain supplies and consumables used in a manufacturing facility. Amends the Illinois Income Tax Act. Creates a credit for taxpayers who have been awarded a data center certificate of exemption. Provides that the amount of the income tax credit shall be 20% of the wages paid during the taxable year to a full time or part time employee of a construction contractor employed by a certified data center. Amends the Illinois Income Tax Act. Creates a deduction for trusts and estates for certain excess business losses. Creates an addition modification for corporations for certain foreign derived income. Amends the Illinois Public Aid Code. Imposes a managed care organization provider assessment. Amends the Illinois Public Aid Code to create a managed care organization provider assessment. As published by the legislature, found through LegiScan.

The rest is on the bill page.

Amends the Illinois Power Agency Act. Establishes the data center self direct program to allow for customers taking service under the data center tariff to receive a reduction in the charges collected for the procurement of renewable energy resources. Provides that the reduction in charges available to the customer shall increase based on the energy or capacity value of the new additive clean energy generation's contribution pursuant to the specified requirements. Provides that the Illinois Power Agency may require that participating customers provide annual reports related to facility operation and performance, customer electricity consumption and load profiles, and other information as necessary. Amends the Public Utilities Act. On and after January 1, 2027, requires all data centers operating within the State and discharging water to a wastewater treatment plant to identify likely pollutants in the data center's water discharges to monitor the data center's water discharges for the likely pollutants and to maintain data on the pollutant levels in water discharges. As published by the legislature, found through LegiScan.

The rest is on the bill page.

Creates the Data Center Water Transparency and Aquifer Protection Act. Provides that, beginning January 1, 2027, no data center operating within the State shall use water from the Mahomet Aquifer. Prohibits State agencies from issuing or renewing a permit authorizing a data center to withdraw groundwater from the Mahomet Aquifer. Requires existing data centers to transition to alternative water sources and cease all groundwater withdrawals from the Mahomet Aquifer by no later than January 1, 2028. Provides that a unit of local government may not enter into, enforce, or renew any nondisclosure agreement, confidentiality clause, or similar contractual provision with a data center that restricts the disclosure of information related to the data center's water use. Contains provisions concerning data confidentiality and public access. Establishes penalties for violations. Grants the Illinois Environmental Protection Agency rulemaking powers. As published by the legislature, found through LegiScan.

Amends the Environmental Protection Act, Energy Efficient Building Act, Illinois Power Agency Act, Public Utilities Act, and related statutes to establish comprehensive environmental, water, and energy regulations for hyperscale data centers. In the Environmental Protection Act, requires cumulative impact assessments, public notice, and community benefits agreements for data centers; prohibits nondisclosure agreements; and creates the Data Center Community Intervenor Compensation Fund and Hyperscale Data Center Public Benefits and Affordability Fund funded by annual fees based on peak demand. Mandates water resource planning, quarterly water usage reporting, water scarcity plans, and Water Impact Permits with public hearings and renewal every 5 years. Requires compliance with stringent energy codes and annual energy and water reporting to the Illinois Commerce Commission. Expands renewable energy procurement programs, establishes a hyperscale data center self direct program, and strengthens equity, transparency, and labor standards in clean energy initiatives. As published by the legislature, found through LegiScan.

The rest is on the bill page.

Amends the Counties Code. Allows a county to establish standards for the construction of data centers by ordinance. Provides that the standards may include, without limitation, the size, height, and design of structures and the number of facilities that may be located within a geographic area. Provides that a county may regulate the siting of data centers in unincorporated areas of the county outside of the zoning jurisdiction of a municipality and the 1.5 mile radius surrounding the zoning jurisdiction of a municipality and may establish other specified standards. Sets forth provisions concerning notice and hearings. Provides that any provision of a county zoning ordinance pertaining to data centers that is in effect prior to the effective date may remain in effect. Amends the Illinois Municipal Code. Provides that a municipality may, by ordinance, regulate the siting of data centers within the municipality's zoning jurisdiction and within the 1.5 mile radius surrounding its zoning jurisdiction and may establish other specified standards. Sets forth provisions concerning notice and hearings. As published by the legislature, found through LegiScan.

Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. In provisions concerning data center incentives, provides that, as a condition of receiving and maintaining a data center certificate of exemption, the Department of Commerce and Economic Opportunity shall require that the qualified data center operator execute and comply with a community benefit agreement with the host community in which the qualified data center is located. Provides that the community benefit agreement shall require the qualified data center operator to make annual minimum payments to the host community. Provides that the amount of the minimum host community payments may exceed but shall be at least 10% of the property tax that would have been levied against the qualified data center property, irrespective of any exemptions, abatements, or exclusions applicable to the property, for the year immediately preceding the year in which the community benefit agreement is entered into. As published by the legislature, found through LegiScan.

The rest is on the bill page.

Amends the Illinois Municipal Code. Provides that, before a municipality grants an application for siting approval of a data center the corporate authorities of a municipality in which the facility will be located or the zoning board of appeals for the municipality shall hold at least one public hearing. Provides that notice of a public hearing shall be published in a newspaper of general circulation. Provides that the siting of a data center shall be subject to back door referendum. Provides that a back door referendum shall be held within 60 days after the municipality publishes notice of the application for sitting approval of the data center, a petition is filed with the municipal clerk and signed by the necessary number of electors, asking that the application for siting approval of the data center be submitted to referendum. Sets forth the requirements of notice. Provides that the municipal clerk must certify the question for submission at a regularly scheduled election held in accordance with general election law. Sets forth the requirements of a back door referendum. Defines "data center" and "application for siting approval of a data center". As published by the legislature, found through LegiScan.

Amends the Environmental Protection Act, Energy Efficient Building Act, Illinois Power Agency Act, Public Utilities Act, and related statutes to establish comprehensive environmental, water, and energy regulations for hyperscale data centers. In the Environmental Protection Act, requires cumulative impact assessments, public notice, and community benefits agreements for data centers; prohibits nondisclosure agreements; and creates the Data Center Community Intervenor Compensation Fund and Hyperscale Data Center Public Benefits and Affordability Fund funded by annual fees based on peak demand. Mandates water resource planning, quarterly water usage reporting, water scarcity plans, and Water Impact Permits with public hearings and renewal every 5 years. Requires compliance with stringent energy codes and annual energy and water reporting to the Illinois Commerce Commission. Expands renewable energy procurement programs, establishes a hyperscale data center self direct program, and strengthens equity, transparency, and labor standards in clean energy initiatives. As published by the legislature, found through LegiScan.

The rest is on the bill page.

Creates the Advanced Technology Leadership Act. Sets forth findings. Defines terms. Sets forth provisions concerning the qualification of credits under the Act. Provides that, beginning calendar year 2027, each covered data center shall self generate or procure and then retire eligible energy attribute certificates equal to the certain percentages of the covered data center's annual State electricity consumption. Provides that a covered data center's compliance requirement shall be otherwise met by retirements of eligible energy attribute certificates produced by eligible energy facilities that are physically interconnected and located in the applicable grid region. Requires a covered data center to retire eligible energy attribute certificates that are matched on an hourly basis to the certain percentages of the covered data center's total State electricity consumption for the following compliance years. Provides that covered data centers shall account for and comply with the Act exclusively through the retirement of eligible energy attribute certificates. As published by the legislature, found through LegiScan.

The rest is on the bill page.

Urges all data centers in Illinois to provide their own energy to alleviate the burden they place on Illinois residents. Urges the Illinois Power Agency and the Illinois Environmental Protection Agency to, pursuant to 415 ILCS 5/9.15(o), develop a plan to reduce or delay CO2e and copollutant emissions reductions. Urges the Illinois Commerce Commission to approve the plan developed by Illinois Power Agency and the Illinois Environmental Protection Agency. As published by the legislature, found through LegiScan.

Creates the Data Center Heating and Cooling Act. Defines "air to water heat exchanger" and "data center". Provides that any new or existing data center in the State shall adopt a heat energy reuse plan that involves the use of an air to water heat exchanger to help heat homes and businesses in the area around the data center. Provides that any data center constructed on or after the effective date of the Act that has an aggregate demand load of 20 megawatts or more shall have a liquid cooling system, such as direct to chip cooling or immersion cooling, incorporated into the data center. Effective January 1, 2027. As published by the legislature, found through LegiScan.

Creates the Data Center Construction by Foreign Adversaries Act. Provides that no foreign company may construct or cause to be constructed a data center in the State unless the Illinois Commerce Commission, the Illinois Power Agency, and the Department of Commerce and Economic Opportunity conduct a joint study of the energy consumption of the prospective data center and certify to the Governor and the General Assembly that the energy used by the new data center is a new self generated load and does not affect the load supply of PJM or MISO. Provides that the term "foreign company" means an entity that (i) is at least 51% owned by a foreign adversary or (ii) is headquartered in a country with a government that is a foreign adversary. As published by the legislature, found through LegiScan.

Creates the Property Owner Protection from Data Center Impacts Act. Makes a property owner eligible for compensation for harm materially and proximately caused by the construction or operation of a data center if the affected property is located within 1,000 feet of the data center and if the data center has caused measurable reduction in fair market value, reduction in business revenue, or adverse environmental or operational impacts, such as noise, vibration, traffic, stormwater burden, or lighting. Creates an appraisal procedure to evaluate the data center's impact on the property owner. Provides a compensation formula to determine real property compensation and business loss compensation. Authorizes a property owner to bring a civil action seeking specified damages and attorney's fees and costs. Creates other remedies for enforcement of the Act. Makes legislative findings. Limits the concurrent exercise of home rule powers. As published by the legislature, found through LegiScan.

Creates the Municipal and Cooperative Electric Utility Transparent Planning Act. Requires certain electric cooperatives, municipal power agencies, and municipalities and distribution electric cooperatives to initiate an integrated resource planning process. Sets forth provisions concerning the integrated resource plan; stakeholder meetings; and a prequalified consulting firm list. Makes conforming changes in the Open Meetings Act and the General Not For Profit Corporation Act of 1986. Creates the Utility Data Access Act. Requires the Illinois Commerce Commission to adopt certain rules. Amends the Illinois Finance Authority Act. Adds provisions concerning the Thermal Energy Network Revolving Loan Program. Amends the Illinois Power Agency Act. Makes changes in provisions concerning the powers of the Illinois Power Agency; the Illinois Power Agency Renewable Energy Resources Fund; the Illinois Solar for All Program; the Planning and Procurement Bureau; and the Agency's annual reports. Amends the Illinois Procurement Code. Makes changes in provisions concerning prequalification. Amends the Property Tax Code. Adds a Division concerning commercial energy storage systems. As published by the legislature, found through LegiScan.

The rest is on the bill page.

Creates the Municipal and Cooperative Electric Utility Transparent Planning Act. Requires certain electric cooperatives, municipal power agencies, and municipalities and distribution electric cooperatives to initiate an integrated resource planning process. Sets forth provisions concerning the integrated resource plan; stakeholder meetings; and a prequalified consulting firm list. Makes conforming changes in the Open Meetings Act and the General Not For Profit Corporation Act of 1986. Creates the Utility Data Access Act. Requires the Illinois Commerce Commission to adopt certain rules. Amends the Illinois Finance Authority Act. Adds provisions concerning the Thermal Energy Network Revolving Loan Program. Amends the Illinois Power Agency Act. Makes changes in provisions concerning the powers of the Illinois Power Agency; the Illinois Power Agency Renewable Energy Resources Fund; the Illinois Solar for All Program; the Planning and Procurement Bureau; and the Agency's annual reports. Amends the Illinois Procurement Code. Makes changes in provisions concerning prequalification. Amends the Property Tax Code. Adds a Division concerning commercial energy storage systems. As published by the legislature, found through LegiScan.

The rest is on the bill page.

Amends the Illinois Procurement Code. Provides that any contract that provides for the storage of any State data shall include a requirement that the State data must be processed, stored, and disposed of within the territory of the United States. Provides that, for any contract that provides for the storage of State data, the Chief Procurement Officer shall allocate to any qualified bidder an earned credit of: (1) 2% of the contract base bid for ensuring that all State data that is included in the contract is stored within the State of Illinois; and (2) an additional 4% of the contract base bid for ensuring that all such State data is stored within an opportunity zone. Contains provisions concerning data centers. As published by the legislature, found through LegiScan.

Amends the Illinois Income Tax Act. Provides that, if a taxpayer is awarded a credit by the Department of Commerce and Economic Opportunity in connection with a qualifying Illinois data center located in an opportunity zone or a data center developed by a minority owned business, a women owned business, or a business owned a person with a disability, then the taxpayer is entitled to an additional income tax credit in an amount equal to 5% of the taxpayer's investment in qualified tangible personal property used in the construction or operation of that data center. Effective immediately. As published by the legislature, found through LegiScan.

Amends the Illinois Procurement Code. Provides that any contract that provides for the storage of any State data shall include a requirement that the State data must be processed, stored, and disposed of within the territory of the United States. Provides that, for any contract that provides for the storage of State data, the Chief Procurement Officer shall allocate to any qualified bidder an earned credit of: (1) 2% of the contract base bid for ensuring that all State data that is included in the contract is stored within the State of Illinois; and (2) an additional 4% of the contract base bid for ensuring that all such State data is stored within an opportunity zone. Contains provisions concerning data centers. As published by the legislature, found through LegiScan.

Amends the Illinois Income Tax Act. Provides that, if a taxpayer is awarded a credit by the Department of Commerce and Economic Opportunity in connection with a qualifying Illinois data center located in a qualified area or a data center developed by a minority owned business, a women owned business, or a business owned a person with a disability, then the taxpayer is entitled to an additional income tax credit in an amount equal to 5% of the taxpayer's investment in qualified tangible personal property used in the construction or operation of that data center. Effective immediately. As published by the legislature, found through LegiScan.

Creates the Data Center Construction by Foreign Adversaries Act. Provides that no foreign company may construct or cause to be constructed a data center in the State unless the Illinois Commerce Commission, the Illinois Power Agency, and the Department of Commerce and Economic Opportunity conduct a joint study of the energy consumption of the prospective data center and certify to the Governor and the General Assembly that the energy used by the new data center is a new self generated load and does not affect the load supply of PJM or MISO. Provides that the term "foreign company" means an entity that (i) is at least 51% owned by a foreign adversary or (ii) is headquartered in a country with a government that is a foreign adversary. As published by the legislature, found through LegiScan.