Illinois Governor JB Pritzker Proposes Two-Year Pause on Data Center Tax Credits to Study Grid and Rate Impacts
SPRINGFIELD, Ill. — Illinois Governor JB Pritzker used this week's budget proposals to call for a two-year pause on data center tax incentives, saying the state must first evaluate the industry's impact on the power grid and household electricity bills.
According to Data Center Dynamics, the proposal would halt new data center tax credit authorizations for two years beginning July 1, while state agencies study the effectiveness of the incentives, the electricity excise tax structure and their impact on state revenues. Under the current program, qualifying projects — at least $250 million invested over 60 months and at least 20 high-paying jobs, with efficiency and sustainability standards — receive sales and use tax exemptions for up to 20 years. The state budget report says 37 projects have been constructed since the program's inception.
"We need to think critically about our future energy usage with the needs of Illinois households at the forefront," Pritzker said. "So, in the face of rising demand and surging prices, I'm proposing a two-year pause on authorization of new data center tax credits." He also said regional grid operator PJM must require data center developers to pay for the capacity resources powering their operations, to protect consumers from higher rates. The proposal requires approval by the state legislature.
Published by GSM · USA (original Chinese edition)
Photo: 伊利诺伊州议会大厦（CC BY-SA 4.0，via Wikimedia Commons）
