Illinois continues to update and expand its array of incentive programs based on industry and community needs.
On the last day of May 2025, passage of a seventh consecutive balanced budget by the Illinois General Assembly included headline investments in economic development in addition to major healthcare and education commitments. Among the measures:
$500 million in funding for historic site readiness initiatives (Surplus to Success and DCEO Site Readiness Initiative) to make more sites across Illinois ready for business, including remediation of State-owned sites as well as efforts to market and recruit out-of-state businesses to call Illinois home
Advancing Innovating Manufacturing for Illinois Tax Credit (AIM Illinois), a new incentive program providing tax incentives to companies making large facility and equipment investments in Illinois. The program provides a 3% credit on qualified investments of $10 million–$50 million, a 5% credit on qualified investments of $50 million–$100 million and a 7% credit on qualified investments exceeding $100 million
Enhancing Key Incentive Programs: “The bill makes improvements to the several incentive programs based on industry feedback, including EDGE and REV Illinois,” explained a release from the office of Gov. JB Pritzker. EDGE is expanded to provide additional incentives to companies investing $100 million or more and retaining 500 jobs, and REV has been expanded to include additional EV supply chain industries.” Specifically, eligible sectors for REV (Reimagining Energy and Vehicles) now include electric and hybrid vehicle and parts and charging equipment manufacturers, electrical transformer manufacturers, and nuclear energy technologies and products manufacturers.
Capital Investment Programs: “In addition to the site readiness capital initiatives, the FY26 budget funded several capital programs that invest in the state’s workforce,” the State explained, “such as manufacturing training academies ($24 million); incentive programs that keep Illinois competitive like the Enterprise Fund ($50 million) and Prime Sites Capital Grant Program ($75 million); and funding for the Made in Illinois program ($1.5 million), which supports small and mid-sized manufacturers.”
In addition, an update to the Illinois Apprenticeship Education Expense Tax Credit program meant a $3,500 credit for each eligible apprentice, support for specialized training and expanded eligibility for training costs. The High Impact Business incentive, which offers tax credits for qualifying projects that invest $12 million and create 500 full-time jobs or invest $30 million and retain 1,500 full-time jobs, expanded its eligibility to High-Voltage Direct-Current (HVDC) converter stations. And the cities of Sterling and Alton were included as pilot nominees for new River Edge Redevelopment Zones, which provide tax-based incentives to revive and redevelop environmentally challenged properties adjacent to rivers in Illinois.
The updates only improve a quality menu of incentive programs that include the following:
- The Manufacturing Illinois Chips for Real Opportunity Act (MICRO) provides incentives for manufacturers of microchips and semiconductors as well as component parts manufacturers in this high-tech sector.
- The Illinois Angel Investment Tax Credit Program encourages investment in innovative, early-stage companies to help companies obtain working capital needed to grow in Illinois.
- The Illinois Film Office, located in the Illinois Department of Commerce and Economic Opportunity, offers a 30% tax credit to film in Illinois.
- Illinois Opportunity Zones provide an incentive for investors to invest in areas that need investment to help create jobs and investment.
- The Blue Collar Jobs Act (BJCA) program supports large-scale economic development activities by providing corporate income tax credits to companies that make substantial capital investments in Illinois.
- The Illinois Historic Preservation Tax Credit Program provides state income-tax credit equal to 25% of a project’s qualified expenditures to owners of certified historic structures
- The Illinois Enterprise Zone Program stimulates economic growth and neighborhood revitalization in economically depressed areas of Illinois through state and local tax incentives, regulatory relief and improved governmental services
- The Music and Musicians Tax Credit and Jobs Act provides tax credits to qualified music companies that produce, distribute or promote music in Illinois, incentivizing job creation, economic growth and diversity in the music industry.
- The Quantum Enterprise Zone (QEZ) program provides qualifying companies with exemptions on various state taxes such as those on utilities and building material.
What would state government do for a follow-up? When the FY2027 budget was signed in June 2026, costs for every one of the state’s citizens were the top priority. But that didn’t mean a loss of focus on what industry needs. Under the label “Making Illinois a Beacon of Economic Opportunity,” these three funding line items aim to do exactly that:
- “$50 million for the new Area Career Centers capital grant program to modernize facilities and strengthen high-quality career pathways.”
- “$20 million for the Illinois Works Pre-Apprenticeship Program to expand Illinois’ pipeline of qualified, diverse workers in the construction and building trades.”
- “$20 million for Manufacturing Training Academies (MTA) to align workforce training capacity with industry demand through the creation of additional academies.”
Further line items directed toward the Illinois Department of Commerce and Economic Opportunity (DCEO) include:
- “$35 million capital investment in the Rebuild Illinois Downtowns and Main Streets program to revitalize business corridors and support small businesses.”
- “$200 million for public infrastructure capital grants to strengthen and modernize roads and bridges, sewer and water mains, and public transportation.”
- “$100 million investment in Site Readiness Illinois (SRI) to advance critical capital infrastructure improvements and ensure Illinois remains competitive for large-scale domestic and international projects.”
- “$65 million investment in Prime Sites funding to support companies relocating to or expanding operations in Illinois to assist with large scale capital investment projects.”
For more information, visit dceo.illinois.gov.
