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In
the final days of the spring session last month, state Rep. Mark
Walker, D-Arlington Heights, passed a bill that modifies the
popular data center tax credit. The credit came about two years
ago with bipartisan agreement and is touted by the governor for
bringing investment to the state.
Senate Bill 2182 clarifies what is considered a data center,
including opening it to facilities that operate within five
miles of each other and requires green building certificates for
the entities seeking the credit, among other changes. It also
requires data centers getting a state tax credit to have a
“labor peace agreement.”
Walker said that won’t be a unionization mandate.
“I will fully admit that if all these parties act completely
appropriately, both the employer and the employees, but
especially the employees, might well vote to belong to a union,
but that’s not required in this bills,” Walker said.
State Rep. Tom Demmer, R-Dixon, argued against the bill, saying
the tax credit is attracting investment as is.
“If you’re an applicant, you may reconsider your application,”
Demmer said. “You may reconsider participating in a program if
the rules change midstream.”
State Rep. Charlie Meier, R-Okawville, said Missouri is setting
up a data center tax credit without such a provision and fears
Senate Bill 2182 will lead to Illinoisans driving to Missouri
for jobs.
“This bill will cost us jobs and businesses and something that
we’re finally No. 1 or No. 2 in the country,” Meier said.
State Rep. Mike Zalewski, D-Riverside, said they want to ensure
anyone benefiting from the incentive uses union labor.
“It should come as no surprise to any data center developer that
this is a pro-union state that wants to use union workers,”
Zalewski said during the debate. “That is not an
earth-shattering revelation to anybody, nor should it be.”
The measure passed the House last month and was sent back to the
Senate for concurrence.
Because it’s beyond the May 31 deadline, any legislation with an
immediate effective date requires a three-fifths majority for
approval.
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