SB1744 Summary - Data Center Investment Program

• Creates a Data Center Investment Program requiring the Department of Commerce and Economic Opportunity to issue certificates of exemption to qualifying Illinois data centers from various state taxes (Retailers' Occupation Tax, Use Tax, Service Use Tax, Service Occupation Tax, and Electricity Excise Tax).

• Establishes qualification requirements: data centers must be located in Illinois, result in at least $25,000,000 in new capital investment within 48 months (on or after July 1, 2017), and create at least 10 full-time jobs associated with data center operation or maintenance within the same 48-month period.

• Requires data center operators seeking exemption to enter into a memorandum of understanding with the Department detailing capital investment and job creation goals, timelines for achieving targets, and repayment obligations if goals are not met.

• Exempts qualified tangible personal property (computer equipment, enabling equipment, software, and other materials) used in data center construction or operation from state sales and use taxes, whether purchased by the data center owner, contractors, subcontractors, or tenants.

• Mandates annual reporting by the Department beginning July 15, 2018 on program outcomes and effectiveness; effective immediately upon becoming law.