Pritzker Pauses Data Center Tax Credits

Illinois Governor J.B. Pritzker has directed the state’s Department of Commerce and Economic Opportunity to suspend tax credits for new data centers, effective July 1. This decision comes after lawmakers declined to pass new regulations in the recent legislative session. The governor’s office clarified that current incentive agreements, as well as those made before July 1, 2026, will remain in place. The pause on tax breaks is expected to impact future data center development and follows scrutiny highlighted by recent reports on the lack of updated oversight in the sector.