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Bill

HB 3565

INC TX-DATA CENTERS

104th Regular Session Introduced by Kimberly Du Buclet and 2 co-sponsors

Illinois bill creating income tax incentives for data center development to attract facility investments and associated jobs to the state.

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 3565

Legislative bill overview

HB 3565 proposes to create or modify income tax incentives for data center operations in Illinois. The bill would provide tax benefits to companies that establish or expand data center facilities within the state, potentially including corporate income tax credits, property tax abatements, or similar financial incentives.

Why is this important

Data centers consume significant electricity and require substantial infrastructure investment, making them economically valuable but also raising concerns about energy costs and environmental impact. Illinois is competing with other states offering aggressive data center incentives, so this bill directly affects the state's ability to attract these facilities and the associated jobs and tax revenue they generate.

Potential points of contention

  • Fiscal cost vs. revenue: Critics may argue that tax incentives reduce state revenue without guarantee that companies will remain long-term or that job creation will materialize as promised
  • Energy and environmental concerns: Data centers have high electricity demands, raising questions about grid strain, renewable energy requirements, and carbon emissions in Illinois
  • Geographic distribution: Incentives may concentrate wealth and development in specific regions rather than benefiting economically distressed communities across the state

Compiled from official sources — confirm details with the bill’s official record.

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