IL HB3565

Creates an additional 5% income tax credit for investments in qualified tangible personal property used to construct or operate data centers located in designated opportunity zones or developed by minority-owned, women-owned, or disability-owned businesses

Applies to taxable years beginning on or after January 1, 2026, for taxpayers already awarded a credit by the Department of Commerce and Economic Opportunity under the existing data center program

Credit is available for 5 taxable years after the qualified property is placed in service and may be transferred to other parties under rules adopted by DCEO

Amends the existing Data Center Construction Employment Tax Credit under the Illinois Income Tax Act (35 ILCS 5/229)

Takes effect immediately upon becoming law