DCEO-DATA CENTERS

Illinois General Assembly - Full Text of SB3120

Select Language

×

The Illinois General Assembly offers the Google Translate™ service for visitor convenience. In no way should it be considered accurate as to the translation of any content herein.

Visitors of the Illinois General Assembly website are encouraged to use other translation services available on the internet.

The English language version is always the official and authoritative version of this website.

NOTE: To return to the original English language version, select the "Show Original" button on the Google Translate™ menu bar at the top of the window.

Choose Language

English

Afrikaans

Albanian

Arabic

Armenian

Azerbaijani

Basque

Bengali

Bosnian

Catalan

Croatian

Czech

Danish

Dutch

Esperanto

Estonian

Filipino

Finnish

French

Galician

Georgian

German

Greek

Gujarati

Haitian Creole

Hausa

Hawaiian

Hebrew

Hindi

Hungarian

Icelandic

Indonesian

Interlingua

Interlingue

Inuktitut

Irish

Italian

Japanese

Javanese

Kannada

Khmer

Korean

Latin

Latvian

Lithuanian

Luxembourgish

Macedonian

Malagasy

Malayalam

Maltese

Maori

Marathi

Myanmar

Nepali

Norwegian

Odia

Pashto

Punjabi

Romanian

Russian

Samoan

Sango

Sanskrit

Sardinian

Sindhi

Sinhala

Slovak

Slovenian

Somali

Southern Sotho

Spanish

Sundanese

Swahili

Swedish

Tamil

Telugu

Thai

Tigrinya

Tonga

Turkish

Ukrainian

Urdu

Vietnamese

Welsh

Xhosa

Yiddish

Yoruba

Zulu

Powered by
Translate

Close

Illinois General Assembly

Top Navigation Bar

Translate

Learn

Select General Assembly

Search the 104th General Assembly

Enter search terms for legislation, members, committees, or schedules.

ILGA.GOV

LEGISLATION & LAWS

Bills & Resolutions

Public Acts

Illinois Compiled Statutes

Illinois Constitution

Search Legislation

Glossary

Guide

Reports & Inquiry

Legislative Reports

Special Reports

FTP Site

Legislator Lookup

Capitol Complex Phone Numbers

Rules & Regulations

Illinois Register

Administrative Rules

Senate

Members

Schedules

Committees

Request for Remote Testimony

Journals

Transcripts

Rules

Audio/Video

FOIA Information

Senate Employment Opportunities

Media Guidelines

House

Members

Schedules

Committees

Submit testimony for House Committees

Journals

Transcripts

Rules

Audio/Video

FOIA Information

House Employment Opportunities

Log In

Mobile Top Bar

Search the 104th General Assembly

Enter keywords to search the Illinois General Assembly website.

Full Text of SB3120

Home

Legislation

Full Text

SB3120 - 104th General Assembly

Bill Status

Full Text

Votes

Witness Slips

Select Menu

Bill Status

Full Text

Votes

Witness Slips

Printer Friendly Version

Introduced

Senate Amendment 001

Printer Friendly Version

Introduced

Senate Amendment 001

Open PDF

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3120

Introduced 2/2/2026, by Sen. Laura M. Murphy

SYNOPSIS AS INTRODUCED:

20 ILCS 605/605-1025

Amends the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois. Provides that a new or existing
data center is a qualifying data center for purposes of the Act only if it
provides in its application details regarding the water stewardship
strategy used by it. Requires the Department of Commerce and Economic
Opportunity's annual report to the General Assembly and the Governor on
data center investments to provides details regarding the water
stewardship strategies used by each recipient business.
LRB104 19414 JDS 32862 b

A BILL FOR

SB3120
LRB104 19414 JDS 32862 b
1

AN ACT concerning State government.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Department of Commerce and Economic
5
Opportunity Law of the Civil Administrative Code of Illinois
6
is amended by changing Section 605-1025 as follows:

7

(20 ILCS 605/605-1025)
8

Sec. 605-1025.
Data center investment.
9

(a) The Department shall issue certificates of exemption
10
from the Retailers' Occupation Tax Act, the Use Tax Act, the
11
Service Use Tax Act, and the Service Occupation Tax Act, all
12
locally-imposed retailers' occupation taxes administered and
13
collected by the Department, the Chicago non-titled Use Tax,
14
and a credit certification against the taxes imposed under
15
subsections (a) and (b) of Section 201 of the Illinois Income
16
Tax Act to qualifying Illinois data centers.
17

(b) For taxable years beginning on or after January 1,
18
2019, the Department shall award credits against the taxes
19
imposed under subsections (a) and (b) of Section 201 of the
20
Illinois Income Tax Act as provided in Section 229 of the
21
Illinois Income Tax Act.
22

(c) For purposes of this Section:
23

"Data center" means a facility: (1) whose primary

SB3120
- 2 -
LRB104 19414 JDS 32862 b
1

services are the storage, management, and processing of
2

digital data; and (2) that is used to house (i) computer
3

and network systems, including associated components such
4

as servers, network equipment and appliances,
5

telecommunications, and data storage systems, (ii) systems
6

for monitoring and managing infrastructure performance,
7

(iii) Internet-related equipment and services, (iv) data
8

communications connections, (v) environmental controls,
9

(vi) fire protection systems, and (vii) security systems
10

and services.
11

"Qualifying Illinois data center" means a new or
12

existing data center that:
13

(1) is located in the State of Illinois;
14

(2) in the case of an existing data center, made a
15

capital investment of at least $250,000,000
16

collectively by the data center operator and the
17

tenants of the data center over the 60-month period
18

immediately prior to January 1, 2020 or committed to
19

make a capital investment of at least $250,000,000
20

over a 60-month period commencing before January 1,
21

2020 and ending after January 1, 2020; or
22

(3) in the case of a new data center, or an
23

existing data center making an upgrade, makes a
24

capital investment of at least $250,000,000 over a
25

60-month period beginning on or after January 1, 2020;
26

and

SB3120
- 3 -
LRB104 19414 JDS 32862 b
1

(4) in the case of both existing and new data
2

centers, results in the creation of at least 20
3

full-time or full-time equivalent new jobs over a
4

period of 60 months by the data center operator and the
5

tenants of the data center, collectively, associated
6

with the operation or maintenance of the data center;
7

those jobs must have a total compensation equal to or
8

greater than 120% of the average wage paid to
9

full-time employees in the county where the data
10

center is located, as determined by the U.S. Bureau of
11

Labor Statistics;
and

12

(5) within 2 years after being placed in service,
13

certifies to the Department that it is carbon neutral
14

or has attained certification under one or more of the
15

following green building standards:
16

(A) BREEAM for New Construction or BREEAM
17

In-Use;
18

(B) ENERGY STAR;
19

(C) Envision;
20

(D) ISO 50001-energy management;
21

(E) LEED for Building Design and Construction
22

or LEED for Operations and Maintenance;
23

(F) Green Globes for New Construction or Green
24

Globes for Existing Buildings;
25

(G) UL 3223; or
26

(H) an equivalent program approved by the

SB3120
- 4 -
LRB104 19414 JDS 32862 b
1

Department of Commerce and Economic Opportunity
;
2

and

.

3

(6) provides details regarding the water
4

stewardship strategy that is used by it, including:
5

(A) records demonstrating whether a
6

closed-loop cooling system or treated municipal
7

wastewater is used;
8

(B) records demonstrating when the water
9

stewardship strategy was adopted; and
10

(C) records demonstrating sustained use of the
11

adopted water stewardship strategy.

12

"Full-time equivalent job" means a job in which the
13

new employee works for the owner, operator, contractor, or
14

tenant of a data center or for a corporation under
15

contract with the owner, operator or tenant of a data
16

center at a rate of at least 35 hours per week. An owner,
17

operator or tenant who employs labor or services at a
18

specific site or facility under contract with another may
19

declare one full-time, permanent job for every 1,820 man
20

hours worked per year under that contract. Vacations, paid
21

holidays, and sick time are included in this computation.
22

Overtime is not considered a part of regular hours.
23

"Qualified tangible personal property" means:
24

electrical systems and equipment; climate control and
25

chilling equipment and systems; mechanical systems and
26

equipment; monitoring and secure systems; emergency

SB3120
- 5 -
LRB104 19414 JDS 32862 b
1

generators; hardware; computers; servers; data storage
2

devices; network connectivity equipment; racks; cabinets;
3

telecommunications cabling infrastructure; raised floor
4

systems; peripheral components or systems; software;
5

mechanical, electrical, or plumbing systems; battery
6

systems; cooling systems and towers; temperature control
7

systems; other cabling; and other data center
8

infrastructure equipment and systems necessary to operate
9

qualified tangible personal property, including fixtures;
10

and component parts of any of the foregoing, including
11

installation, maintenance, repair, refurbishment, and
12

replacement of qualified tangible personal property to
13

generate, transform, transmit, distribute, or manage
14

electricity necessary to operate qualified tangible
15

personal property; and all other tangible personal
16

property that is essential to the operations of a computer
17

data center. "Qualified tangible personal property" also
18

includes building materials physically incorporated in to
19

the qualifying data center.
20

To document the exemption allowed under this Section, the
21
retailer must obtain from the purchaser a copy of the
22
certificate of eligibility issued by the Department.
23

(d) New and existing data centers seeking a certificate of
24
exemption for new or existing facilities shall apply to the
25
Department in the manner specified by the Department. The
26
Department shall determine the duration of the certificate of

SB3120
- 6 -
LRB104 19414 JDS 32862 b
1
exemption awarded under this Act. The duration of the
2
certificate of exemption may not exceed 20 calendar years. The
3
Department and any data center seeking the exemption,
4
including a data center operator on behalf of itself and its
5
tenants, must enter into a memorandum of understanding that at
6
a minimum provides:
7

(1) the details for determining the amount of capital
8

investment to be made;
9

(2) the number of new jobs created;
10

(3) the timeline for achieving the capital investment
11

and new job goals;
12

(4) the repayment obligation should those goals not be
13

achieved and any conditions under which repayment by the
14

qualifying data center or data center tenant claiming the
15

exemption will be required;
16

(5) the duration of the exemption; and
17

(6) other provisions as deemed necessary by the
18

Department.
19

(e) Beginning July 1, 2021, and each year thereafter, the
20
Department shall annually report to the Governor and the
21
General Assembly on the outcomes and effectiveness of Public
22
Act 101-31 that shall include the following:
23

(1) the name of each recipient business;
24

(2) the location of the project;
25

(3) the estimated value of the credit;
26

(4) the number of new jobs and, if applicable,

SB3120
- 7 -
LRB104 19414 JDS 32862 b
1

retained jobs pledged as a result of the project;
and

2

(5) whether or not the project is located in an
3

underserved area
; and

.
4

(6) beginning July 1, 2027, details regarding the
5

water stewardship strategies used by each recipient
6

business, including:
7

(A) records demonstrating whether a closed-loop
8

cooling system or treated municipal wastewater is
9

used;
10

(B) records demonstrating when the water
11

stewardship strategy was adopted; and
12

(C) records demonstrating sustained use of the
13

adopted water stewardship strategy.

14

(f) New and existing data centers seeking a certificate of
15
exemption related to the rehabilitation or construction of
16
data centers in the State shall require the contractor and all
17
subcontractors to comply with the requirements of Section
18
30-22 of the Illinois Procurement Code as they apply to
19
responsible bidders and to present satisfactory evidence of
20
that compliance to the Department.
21

(g) New and existing data centers seeking a certificate of
22
exemption for the rehabilitation or construction of data
23
centers in the State shall require the contractor to enter
24
into a project labor agreement approved by the Department.
25

(h) Any qualifying data center issued a certificate of
26
exemption under this Section must annually report to the

SB3120
- 8 -
LRB104 19414 JDS 32862 b
1
Department the total data center tax benefits that are
2
received by the business. Reports are due no later than May 31
3
of each year and shall cover the previous calendar year. The
4
first report is for the 2019 calendar year and is due no later
5
than May 31, 2020.
6

To the extent that a business issued a certificate of
7
exemption under this Section has obtained an Enterprise Zone
8
Building Materials Exemption Certificate or a High Impact
9
Business Building Materials Exemption Certificate, no
10
additional reporting for those building materials exemption
11
benefits is required under this Section.
12

Failure to file a report under this subsection (h) may
13
result in suspension or revocation of the certificate of
14
exemption. Factors to be considered in determining whether a
15
data center certificate of exemption shall be suspended or
16
revoked include, but are not limited to, prior compliance with
17
the reporting requirements, cooperation in discontinuing and
18
correcting violations, the extent of the violation, and
19
whether the violation was willful or inadvertent.
20

(i) The Department shall not issue any new certificates of
21
exemption under the provisions of this Section after July 1,
22
2029. This sunset shall not affect any existing certificates
23
of exemption in effect on July 1, 2029.
24

(j) The Department shall adopt rules to implement and
25
administer this Section.
26
(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 12-13-19;

SB3120
- 9 -
LRB104 19414 JDS 32862 b
1
102-427, eff. 8-20-21; 102-558, eff. 8-20-21.)

Footer

Disclaimer

This site is maintained for the Illinois General Assembly by the
Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706.

Contact ILGA Webmaster

ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies.
Read About Cookies

ILGA.GOV

2026 ILGA.gov | All Rights Reserved |
ADA

|
Disclaimers
|
Learn

This site is maintained for the Illinois General Assembly by the
Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706.
Contact ILGA Webmaster

ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies.
Read About Cookies

ILGA.GOV

2026 ILGA.gov | All Rights Reserved |
ADA

|
Disclaimers
|
Learn