IL SB3939

Adds a new tax credit for taxable years beginning January 1, 2025 equal to 5% of a taxpayer's investment in qualified tangible personal property used in constructing or operating a qualifying Illinois data center.

Credit applies to data centers located in a qualified area (opportunity zones, R3 communities, or Disproportionately Impacted Areas under the Adult-Use Cannabis Social Equity Program) or developed by a qualified business enterprise (minority-owned, women-owned, or disability-owned businesses).

Credit is available for 5 taxable years after the property is placed in service and may be transferred in accordance with Department of Commerce and Economic Opportunity rules.

Excess credits that exceed tax liability for a year may be carried forward and applied to tax liability in the 5 following taxable years.

Requires the Department of Revenue, in cooperation with the Department of Commerce and Economic Opportunity, to adopt rules for enforcement and administration; credit is exempt from sunset provisions.