Incentives and Tax Credits

SCAM ALERT: DCEO has been made aware of organizations receiving fraudulent “notice of award” letters claiming to be from the Illinois Department of Commerce and Economic Opportunity. These are not legitimate notices from DCEO. If your organization receives a notice, please report it to the Federal Trade Commission  and/or the FBI’s Internet Crime Complaint Center . Close button Incentives and Tax Credits Illinois Expands Business Incentives in 2025 In 2025, Illinois enacted a suite of forward-looking legislative enhancements to its incentive and tax-credit portfolios, reinforcing our commitment to grow companies, attract new investment, and cement the state’s position as a leader in the nation’s economic growth. “2025 Enhanced Incentives” underscore Governor Pritzker’s dedication to the vitality and strength of our economy making Illinois the premier destination for business innovation and growth. Updates by Program: Advancing Innovative Manufacturing (AIM) New Program A new tax-credit initiative designed to accelerate manufacturing projects that integrate cutting-edge technologies into their processes. Capital-focused eligibility tailored for projects undertaking substantial capital improvements. Simple credit tiers: 3% credit on qualified investments of $10 million–$50 million 5% credit on qualified investments of $50 million–$100 million 7% credit on qualified investments exceeding $100 million Flexibility in timing allows eligible investments over a five-year period. Illinois Apprenticeship Education Expense Tax Credit Inclusivity in accredited training institutions Simplified credit award Clarifies instruction expenses $3,500 Credit for Each Eligible Apprentice Support for Specialized Training Expanded Eligibility for Training Costs High Impact Business Expanded eligible sectors & removed barriers to growth High-Voltage Direct-Current (HVDC) converter stations are now recognized as a High-Impact Business (HIB) eligible sector. Reimagining Energy and Vehicles (REV) Expanded eligible sectors to include hybrid vehicles and nuclear power generators To support a broader range of industries, REV eligible sectors now include electric and hybrid vehicle and parts and charging equipment manufacturers, electrical transformer manufacturers, and nuclear energy technologies and products manufacturers. Economic Development for a Growing Economy (EDGE) Expanded Tier II eligibility New Tier II criteria that will provide benefits for applicants who commit to a minimum $100 million in capital investment and retain 500 jobs. Rivers Edge Redevelopment Zone expansion New RERZ nominees The following cities are included as pilot nominees for new RERZs:  Sterling and Alton Illinois offers tax-based incentives to help your business create jobs and invest in Illinois. For an overview of our programs and to discuss your options, contact us at  https://dceo.illinois.gov/dceo-program-inquiry.html . Other changes include additional funding of grant programs such as Prime Sites and continued support for the Closing Fund, Manufacturing Training Academies (MTAs) and Employer Training Investment Program (ETIP). Information on Incentives and Programs Manufacturing Illinois Chips for Real Opportunity Act (MICRO) 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. Reimagining Energy and Vehicles Program The REV Program provides companies engaged in R&D and manufacturing of electric vehicles (EV), renewable energy, green steel, and their associated component parts with diverse incentives. Illinois Angel Investment Credit Program 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

eligibility tailored for projects undertaking substantial capital improvements