HB4634 Summary: Manufacturing Illinois Chips for Real Opportunity (MICRO) Act

• Establishes the Manufacturing Illinois Chips for Real Opportunity (MICRO) Program administered by the Department of Commerce and Economic Opportunity to provide tax incentives for semiconductor and microchip manufacturers and component parts manufacturers in Illinois.

• Requires applicants to make minimum capital investments ($1.5 billion for major manufacturers, $300 million for component manufacturers, $20-100 million for smaller projects) and create specified numbers of full-time jobs with wages at least 120% of county average wage within 48-60 months.

• Provides tax credits up to 75-100% of incremental income tax from new employees and 10-25% of training costs, plus construction jobs credits; credits available for 10-15 taxable years depending on project tier, with credits available starting in 2026.

• Grants exemptions from electricity excise tax, utility surcharges, retailers' occupation tax on building materials, and allows property tax abatement by local taxing districts for certified project facilities.

• Requires applicants to report annually on workforce diversity, vendor diversity, sexual harassment policies, and recycling arrangements; program sunsets for new agreements after December 31, 2028.