< PreviousLETTER FROM THE GOVERNOR D ear Readers, Time and time again, the State of Illinois reinforces its status as a global economic powerhouse — an ongoing result of our strong workforce, unmatched incentives and unabashed commitment to innovation. Illinois has surpassed $ . trillion in GDP and attracted billions in private-sector investments while securing nine credit upgrades and topping national economic development rankings as we attract investment, drive innovation and lead in the industries shaping our future. From clean energy to artifi cial intelligence — where Illinois has one of the fastest growing hubs in the country — our state is proving that future-focused policy and strategic investments deliver real results. Our strategic location in the “Middle of Everything” makes Illinois a premier destination for visitors from near and far, and we’re showing businesses looking to locate or grow that Illinois is the best place in the nation to live, work and do business. With a central location boasting access to the largest freshwater system and some of the most fertile soils in the world, we have numerous natural advantages to build upon as we strengthen our strategic advantages including massive clean energy production, world-class educational and research institutions, and a talented, highly educated workforce. We’ve experienced landmark achievements for economic development in Illinois, with infrastructure improvements, job growth and private-sector investments in high-growth industries like quantum, life sciences and advanced manufacturing. Our momentum continues to grow as we demonstrate there is no better place to do business than Illinois. Today, Illinois is open for business. I hope you enjoy this year’s Illinois Investment Guide and keep Illinois top of mind for all your business needs. Governor JB Pritzker Photo: Getty Images Welcome to the Middle of Everything 8 ILLINOIS INVESTMENT GUIDE10 ILLINOIS INVESTMENT GUIDE ou might not think that a U-Haul truck could be a harbinger of an improving business climate, but dig beneath the numbers and you see a clear pattern emerging. From January to July of this year, Greater Chicago saw an infl ux of new residents from places like Milwaukee, Indianapolis and Detroit. According to U-Haul, one-way rental data during the fi rst six months of , these Midwest cities ranked as the top places of origin for these relocating renters. St. Louis and Dallas also placed in the top fi ve. is new data corroborates a longer-term migration pattern un- covered recently by Hamilton Lom- bard of the Weldon Cooper Center for Public Service at the University of Virginia. A top demographic researcher, Lombard discovered the places that are attracting the largest numbers of new residents among -to--year-olds. From to , the Northern Illinois cities of Pontiac, Rochelle and Rockford all gained new residents among this cohort at a rate of % or greater. When signifi cant pockets of your state gain the most coveted workforce demographic in sizable numbers, it shows that what you are doing in economic development is making a positive diff erence. For Illinois, this new wave of talent in-migration indicates that growing employers are attracting the kind of workers that most places want to hire. And in Illinois, corporations are adding new workplace facilities faster than any place in America other than Texas. With corporate facility investment deals in , by RON STARNER In keeping with Illinois’ forward-thinking approach, a brand-new stadium is being built on the shore of Lake Michigan for Chicago Fire FC of Major League Soccer. Renderings courtesy of Chicago Fire FC Talented workers are migrating to a state that backs both human and investment capital. BUSINESS CLIMATE OVERVIEW How Illinois Built A World-Class Business Climate12 ILLINOIS INVESTMENT GUIDE Illinois outpaced 48 other states in this key economic development performance metric — and this was the third year in a row that the Land of Lincoln achieved this lofty milestone. Paulina San Millan, senior vice president of business development for the Illinois Economic Development Corporation, says that a key factor in her state’s sustained run of success is the fact that “no one industry dominates. We support all sectors. The state’s investment in workforce keeps attracting companies. They can come to Illinois knowing that the worker training programs will be here and that we have already trained and equipped a ready workforce. We have one of the highest rates of workers with a college degree or higher in the nation. That makes a big difference.” Assets Abound in Illinois Elizabeth Gichana, vice president of life sciences business development for the Illinois EDC, adds that “our infrastructure is a major factor. We have two major airports in Chicago in O’Hare and Midway. We have sufficient water and other essential utilities. We have top-tier research institutions, national labs and a top-rated community college system.” John Boyd Jr., principal of The Boyd Company Inc., a national site selection consulting firm with offices in Florida and New Jersey, put it this way: “Chicago remains a compelling city for national cor- porate headquarters for a number of reasons. I would first point to the role that O’Hare plays in connect- ing Chicago-based companies to the national and global market- place. Added to O’Hare’s role is Chicago’s fundamental advantage of its mid-continent location. Also, Chicago has a long pedigree as a leading U.S. head office city which has engendered a deep pool of head office support services in fields like accounting, finance, management consulting, engineering, advertis- ing and public relations.” State government works hard to make Illinois affordable, he adds. “Chicago has a generous incentive program tailored to attracting a corporate headquarters,” Boyd The new AIM Tax Credit rewards existing and new manufacturers when they grow in Illinois, providing a tax credit of 3-7% based on the size of their investment. Source: Illinois EDC Attractive meeting places are common in Illinois, and the new Chicago Fire stadium will be no different.says. “On the operating cost front, we have always characterized Chicago as not overpriced.” In fact, when The Boyd Company’s BizCosts recently ranked the top 20 headquarters markets in the U.S. on their annual operating costs, the Chicago Central Loop district came in at No. 5 among the least-expensive office markets in the nation. As Boyd notes, Illinois has always maintained a competitive edge when it comes to incentivizing businesses to locate or expand in the state. The new balanced-budget package passed in Illinois advances the state incentives programs even further. Among other key measures, the legislation included the following: The Advanced Innovative Manufacturing for Illinois (AIM) Tax Credit offers tax incentives to companies investing heavily in facilities and equipment, and is especially geared to benefit small and mid-sized firms. A new CapX Tax Credit rewards existing manufacturers in Illinois by offering a tax credit ranging from 3% to 7% based on the size of their investment. The most important capital investment program in the FY26 Budget was the State’s Surplus to Success Program ($300M) and the targeted site readiness funding ($200M). This paragraph should be reworked to reflect the state’s investment in site readiness. As one leader at the Great River Economic Development Foundation said, “This is a forward-thinking Economic Development Package that brings targeted incentives and strategic investments aimed at strengthening Illinois’ business community.” Illinois maintains other advantages as well. For example: • The state boasts five international airports and seven additional commercial airports. O’Hare in Chicago offers the most flights of any U.S. airport. • Illinois is the only state that has all seven Class I freight railroads. • Chicago is home to the third largest intermodal port in the world. • Illinois has the third largest Interstate Highway System in the U.S. • Illinois has two major inland ports and 14 waterway ports. A Leader in Innovation Beyond these assets, Illinois is known across the world for the way it supports research, innovation and entrepreneurship. More than 200 spaces are now available to innovators across Illinois at places like incubators, coworking centers, accelerators, research centers and technology parks. San Millan notes that “We have put $500 million into this sector [in the last fiscal year]. We understand quantum; and we know how fast these industries move in their decision making. We are seeing a lot of interest [from companies] domestically and from other countries who want to be part of the Illinois Quantum and Microelectronics Park on Lake Michigan in Chicago. These companies need places to go and they want to be in Illinois.” San Millan adds that “having two national labs is key for us. That attracts interest from a lot of companies.” The Argonne National Laboratory in Lemont and the Fermi National Accelerator Laboratory in Batavia are both attracting global interest and inquiries, according to San Millan. Argonne specializes in advanced energy research, while Fermilab is devoted to research in particle physics. As Elizabeth Gichana of Illinois EDC says, “We like to focus on what keeps us on the competitive edge.” The state’s investment in workforce keeps attracting companies. They can come to Illinois knowing that the worker training programs will be here and that we have already trained and equipped a ready workforce. We have one of the highest rates of workers with a college degree or higher in the nation. That makes a big difference. ” — Paulina San Millan, Senior Vice President, Illinois EDC ILLINOIS INVESTMENT GUIDE 1314 ILLINOIS INVESTMENT GUIDE hen Christy George was named president and CEO of the Illinois Economic Development Corporation last September, she came to the job with considerable experience in leading large- scale eff orts for the state. Among many other accomplishments on her resume were serving as executive director of the Chicago Host Committee for the Democratic National Convention and serving as the First Assistant Deputy Governor for Budget and Economy under Illinois Gov. JB Pritzker. A graduate of the Loyola University Chicago School of Law, George is also known for her work in guiding the landmark Reimagining Energy and Vehicles in Illinois (REV Illinois) into law and overseeing multiple key initiatives during her time with the City of Chicago. Now, she has another job: leading Illinois’ economic development eff orts and ensuring growth and prosperity for all pockets of the state. In my recent interview with George, she made it clear that she intends to keep Illinois performing as a top three state in economic development — and hinted that she has her sights set on an even loftier goal. When you worked in the Governor’s Office, you crafted the Reimagining Energy and Vehicles in Illinois (REV Illinois). How has this legislation aided the Illinois economy, and what were some of the state’s biggest project wins as a result of it? CHRISTY GEORGE: at bill was a labor of love. It was probably the largest piece of legislation that I was able to work on besides the general budget bills. It was a companion to the Climate and Equitable Jobs Act. at set Illinois on a path to attain % clean energy by . We enacted provisions to increase our solar and wind production throughout the state and to maximize the effi cient use of our nuclear fl eet. e main part of REV Illinois was incentivizing decarbonization of the automotive sector. Companies came to us and said that we were not as competitive as other states in this area, so we passed REV Illinois. It was a bipartisan, bicameral eff ort. Only two members of our legislature voted against it. We had a tremendous amount of support. We considered the needs of electric vehicle manufacturers, and the legislators just ILLINOIS EDC INTERVIEW by RON STARNER W How Illinois Upped its Game How Illinois Upped Its Game Joggers and cyclists enjoy Chicago’s Lakefront Trail as the sun rises over Lake Michigan. Photo courtesy of Illinois Office of TourismILLINOIS INVESTMENT GUIDE 15 got it. Both Democrats and Republicans in Illinois supported it. Because of REV Illinois, we landed Gotion — an EV battery maker that is making a $2 billion investment and adding 2,600 jobs; and electric vehicle manufacturer Rivian expanded. They have over 6,000 jobs now in what used to be a Mitsubishi plant in Normal, Illinois. We also landed an EV bus maker in Peoria, Damera, and an EV battery startup from Boston, Pure Lithium, is now moving to Chicago. We are seeing both small projects and large projects. Altogether, we have had over 20 project wins from REV Illinois since it was passed. What did you learn from your time spearheading the state’s business attraction and engagement efforts that you can apply to your current position as CEO of Illinois Economic Development Corporation? GEORGE: In that role, I became deeply familiar with the Governor’s passion for this state and his passion for economic development. His administration started after years of budget impasses and credit downgrades. He spent the first couple of years creating new revenue streams. He was building the infrastructure of Illinois. Our $45 billion Rebuild Illinois Capital Plan allowed for more projects to move forward. The No. 1 thing I had to learn was to listen to the business community and the businesses wanting to expand and listen to the communities wanting to attract businesses. How could we facilitate answering those needs at the state level? Every day, it is important to listen first so that you can understand the company and client needs. I have also learned how amazing the state is. That has helped me every single day in this role. I have learned so much about downstate Illinois. It has opened my mind to all the incredible assets of this state. When you hosted the DNC Convention last year in Chicago, what feedback did you receive from the attendees about Illinois and its hospitality? GEORGE: It helped that we had four days of incredible weather. We really showed off that week. People from around the nation fell in love with our city. My No. 1 goal was to make sure that from the attendees’ experience, they could see Chicago through our eyes. This is my chosen home. I was born and raised in the San Francisco Bay Area, but I raised my family and built my career here. Convention attendees felt how welcoming Chicago is. They got to see Chicago in a way that is not portrayed in the news. This is personal to me. My dad was born and raised in the Chicago suburbs. I have family here. My mom is from Detroit. I went to undergrad in Ohio and law school here in Chicago. Law school brought me here and family kept me here. And the people of Chicago kept me here. It is hard not to love this city. Illinois perennially performs as a top three state in total corporate facility project wins. What has enabled Illinois to remain in this top tier, and do you think the state needs to do anything more in this area? GEORGE: Illinois has performed well over the last several years, but I am looking forward to unseating Texas [in top relocations and expansions]. After righting the fiscal ship in Illinois, there was a huge opportunity to promote our location as the capital of the Midwest and all the transportation assets we have. We are the only state where all of the Class 1 railways meet in two locations. When executives need to go from point A to point B, they do that at O’Hare. We have the largest nuclear reactor fleet in the nation — 11 reactors at six plants. That produces more than 50% of all of the energy in Illinois. We have seen increasing solar throughout the state, and we have seen growing wind production too. We have incredible natural resources. We have access to freshwater through Lake Michigan. We also have the Illinois River “ Illinois has performed so well over the last several years, but we will unseat Texas. That is my goal. ” — Christy George, President & CEO, Illinois EDC16 ILLINOIS INVESTMENT GUIDE and the Mississippi River and all the aquifers throughout the state. But the biggest advantage of all in Illinois is the fact that we have a talent pool of 6.5 million workers. Companies need our engineers. The University of Illinois produces 3,500 engineers annually. That is more than Cal Tech, MIT and Stanford combined. We have also built competitive incentives. The question is: How do we continue to stay at the top? We do that by listening to industry and adapting to what they need. Here in Illinois, we are very stable and we have one message for companies. We call ourselves Team Illinois for a reason. We have amassed a large number of partners. We work together to ensure that growing companies find what they need to achieve their goals and prosper. Chicago has won the Top Metro award from Site Selection for the past dozen years in a row. Why is Chicago annually the best place in America for corporate facility investment deals? GEORGE: We have an incredibly deep bench of talent in such a small radius. We have incredible, world-class universities at University of Chicago, University of Illinois and Northwestern. Chicago State is building more curricula to connect with quantum and microelectronics. We are a hub for innovation with over 100 incubators and accelerators. Another reason for our success is that businesses feel so connected to the civic community. We have such a diverse economy in this city. I do not know of any other city in America that can do what we do. I have spent time in New York, San Francisco and other big U.S. cities. Chicago is second to none. If you were sitting across the table from another CEO, what message would you share with that leader on why they should invest in Illinois? GEORGE: The first thing I would share with them is that if you are thinking long term, Illinois is the place you want to be. Whether it is climate resilience or natural resources or commitment from the state, we can check all of those boxes and more. We offer a great combination of affordability and abundant resources. We have attractive and livable spaces for your workforce. We have incredible and expansive worker training programs. We have the third-largest community college system in the nation. The community college system in America started in Joliet, Illinois, with the founding of Joliet Junior College in 1901. A key part of this administration has been education. We are focused on making sure that companies can hire from today and scale for tomorrow. We support all people without exception. We are very inclusive. We are a partner for your people and your business. What is Illinois’ best-kept secret? GEORGE: I will give you two. The first is a very small Brazilian restaurant that I love to frequent in Chicago. Our culinary scene is so good. We are not just deep-dish pizza and hot dogs. Our eateries really make our city shine. Secondly, we as a state are quietly and quickly becoming a leading destination for science and technology. We are leading advanced physics technology. We are landing multimillion-dollar advanced science deals. We are the quantum computing hub for all of North America. In fact, In fact, we recently hosted the Global Quantum Forum. People came from over 20 countries People are coming from 20 countries. We sold it out within days. That is currently our best-kept secret. What is the biggest misconception about Illinois? GEORGE: There are two big misconceptions about Illinois. One is our taxes. People look at our corporate income tax and think it is not worth it. Our taxes allow us to have better schools and a stronger social support system. “ We call ourselves Team Illinois for a reason. We have amassed a large number of partners. We work together to ensure that growing companies find what they need to achieve their goals and prosper. ” — Christy George, President & CEO, Illinois EDCILLINOIS INVESTMENT GUIDE 17 That is why we have so many assets. Illinois is still affordable. Because of all the incentives we have, we have a number of ways to abate taxes: payroll withholding; an income tax credit; etc. Every single year, we are constantly thinking of new incentives to help companies come here and expand. The second big misconception is crime. Illinois gets a bad rap. Overall, we have decreased crime. We have less violent crime than many other states. The superintendent has helped deliver the lowest violent crime rate in Chicago since the 1960s. We are seeing improvements. Overall, Illinois is a safe place. You can raise your family here and feel safe. Downstate Illinois does not attract as much media attention as Greater Chicago and Northern Illinois. What would you like the reader of this publication to know about the downstate region of your state? GEORGE: There are huge opportunities for affordability downstate. First of all, they have incredible assets — Illinois State University; Bradley; University of Illinois; SIU-Edwardsville; SIU-Carbondale; and many more. We can meet workforce needs anywhere. Secondly, we have seen some of the best sites in Illinois located downstate. That is the best place to launch a large manufacturing facility. Communities across downstate are interested in investing in more aggressive incentives [to attract large projects]. There are also other assets particularly in the agriculture sector that are attractive. I was just in Carbondale and visited with the National Corn and Ethanol Research Center. Also the iFAB Tech Hub in Decatur, who works on biofermentation projects and other advancements, is a tremendous asset to the state. The bottom line is that Illinois has great assets throughout the state. 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