Illinois Technology Incentives

At the forefront of Illinois economic development trends are incentives and initiatives regarding advanced technology. The most recent five-year Illinois Economic Plan released in August 2024 highlights several areas for industries to take advantage of these planned investments. Click to expand for a summary of the state plan and linked report, and learn more below about the related advanced technologies.

Illinois 2024 Economic Growth Plan Main Sections Summary

Business Attraction & Development Strategy

Site Readiness:
Illinois plans to strengthen its business attraction strategy by investing in site readiness, offering strategically located and utility-accessible sites, particularly focusing on large parcels near key infrastructure. The state has initiated the Megasites Investment Program and the Vetted Sites Program in collaboration with Intersect Illinois. This initiative aims to prepare more sites across Illinois, providing grants to landowners and communities to enhance site readiness and promote economic development.

Customized Job Training:
Illinois emphasizes customized job training to align with employer needs. The state supports Manufacturing Training Academies at community colleges, offering advanced skills training. The Fast Track Program provides grants to help major employers recruit and train workers. Illinois plans to expand its workforce development initiatives by branding all Manufacturing Training Academies, increasing resources for the Fast Track program, and supporting apprenticeship programs.

White Glove Service for Businesses:
Illinois has developed a unified economic development team, "Team Illinois," consisting of the Governor’s Office, DCEO, Intersect Illinois, and other partners. This team offers coordinated engagement with businesses considering investments in Illinois. The state is expanding its Regional Economic Development (Team RED) to enhance local business support and streamline applications for business development programs.

Competitive Incentives:
Illinois offers various competitive incentives to attract businesses, including the EDGE for Startups, REV, and MICRO programs. The state plans to introduce new incentives like an Advanced Manufacturing Investment Tax Credit, allowing noncontiguous Enterprise Zones, and extending the Research and Development Tax Credit.

High-Growth Industries

Illinois is targeting six high-growth industries where the state has significant potential:

Building Resilient & Growing Communities

Education for Careers:
Illinois plans to expand efforts to coordinate workforce development and education programming from kindergarten through adulthood. This includes aligning education with business development efforts to prepare residents for in-demand occupations.

Investing in Underserved Communities:
The state is committed to investing in underserved communities, with initiatives like the Illinois Grocery Initiative, the Office of Rural Development, and broadband expansion. Illinois is also supporting entrepreneurs in underserved areas through programs like the State Small Business Credit Initiative (SSBCI) and the Illinois Innovation Venture Fund (INVENT).

Access to Child Care:
The Smart Start Illinois program supports child care access and providers, aiming to increase the number of child care seats across the state. The new Department of Early Childhood will make early childhood services more accessible and equitable.

Quality Jobs:
Illinois is focused on creating quality jobs and maximizing opportunities for residents. The state is launching the Quality Jobs Pilot Program in partnership with the Illinois Department of Labor to ensure that jobs created through state incentives are well-paying and sustainable.

Increasing Grant Accessibility:
To make grant processes more equitable, Illinois is establishing the Illinois Grant Access Initiative to support grantseekers and ensure that economic development opportunities are accessible to all communities.

List of Proposed Action Items

The plan concludes with a comprehensive list of proposed action items aimed at achieving the outlined goals. These include specific actions to enhance site readiness, expand workforce development initiatives, provide tailored business services, and deploy competitive incentives to attract and retain businesses in Illinois. The state is also committed to promoting innovation, supporting high-growth industries, and investing in underserved communities to ensure equitable economic growth.

Click Here for the Full August 2024 Illinois Economic Growth Plan

Illinois Semiconductor FAQs

The goal is to attract semiconductor manufacturing and research to Illinois, positioning the state as a leader in the semiconductor industry. Source


The CHIPS and Science Act, signed by President Biden, aims to strengthen the U.S.'s domestic manufacturing and supply chains. Gov. J.B. Pritzker mentioned that this legislation will benefit Illinois manufacturers who use semiconductors in their products, as it will make it easier to obtain the necessary chips. Source


The act will boost America's ability to compete, especially against countries like China, in semiconductor chip production. It will also support the construction of new plants and facilities for increased chip production. Source


Illinois, particularly through efforts by Gov. J.B. Pritzker and former Chicago Mayor Rahm Emanuel, is consistently bringing attention and funds to support the experimental field of quantum computing. This includes potential applications like faster vaccine development and unhackable computers. Source


Gov. J.B. Pritzker believes that Illinois has the potential to become "the Silicon Valley of quantum development." The state is investing in quantum research, with the University of Chicago leading several initiatives. Source

Illinois Electric Vehicle FAQs

Illinois offers tax credits, grants, and other incentives to attract electric vehicle manufacturers to the state. Source


Through various programs and incentives, Illinois encourages companies to invest in R&D, leading to advancements in electric vehicle technology and infrastructure. Source


While the entire state is open to electric vehicle manufacturing, certain regions may offer additional local incentives or benefits to attract businesses. Source


Illinois is actively promoting the development of electric vehicle charging infrastructure to support the growth of EVs in the state. Source


Illinois aims to form partnerships with manufacturers, offering them incentives and support in exchange for their investment in the state's electric vehicle ecosystem. Source

Other advanced technologies with recent incentive commitments are hydrogen energy, quantum technology, and biotech.

Hydrogen Energy Development in Illinois:

Incentives, Partnerships, and a Sustainable Future

Hydrogen energy is making significant strides in Illinois with multi-state partnerships and university commitments in recent years and federal funding this year.

A Billion-Dollar Boost for the Midwest Hydrogen Hub

In collaboration with Indiana and Michigan, Illinois has secured $1 billion in federal funding from the U.S. Department of Energy (DOE) for the Midwest Hydrogen Hub. This network aims to accelerate decarbonization through strategic hydrogen use, targeting a substantial reduction of carbon emissions by approximately 3.9 million metric tons annually.

The Midwest Hydrogen Hub: A Multi-State Initiative

The Midwest Hydrogen Hub is a collaborative effort involving multiple states, including Indiana and Michigan. The hub's strategic location in a crucial U.S. industrial and transportation corridor will promote hydrogen use in various sectors, including steel and glass production, power generation, refining, heavy-duty transportation, and sustainable aviation fuel. The impact? An estimated annual carbon emission reduction equivalent to removing the emissions of over 867,000 gasoline-fueled cars.

Illinois' Climate Commitment

In line with the carbon reduction impact of the Midwest Hydrogen Hub, the DOE's award builds on the Illinois Climate and Equitable Jobs Act, which has set a national benchmark with its aggressive decarbonization goals, committing Illinois to be entirely reliant on clean energy by 2050.

Job Creation and Economic Boost

The Midwest Hydrogen Hub also anticipates the creation of 13,600 jobs and plans to invest around $15 million in training and employment services for the clean energy workforce. Furthermore, the hub is committed to promoting equitable hiring and contracting practices. Some of its targets include allocating 40 percent of subcontracted dollars to Minority/Disadvantage Business Enterprises and investing $30 million in an inclusive entrepreneurship program.

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Illinois Quantum Technology FAQs & More

The Bloch Tech Hub is a coalition of private and public organizations, led by the Chicago Quantum Exchange, that aims to advance the regional adoption of quantum information science and technology (QIST). Source; Source


The U.S. Economic Development Administration (EDA) has designated the Bloch Tech Hub as one of the 31 Regional Technology and Innovation Hubs (Tech Hubs) based on its potential for innovation and economic growth. This designation makes the Bloch Tech Hub eligible for significant federal funding to further its initiatives. Source


As a designated Tech Hub, the Bloch Tech Hub is eligible to apply for the second phase of the Tech Hubs Program, where it can receive between $50 and $75 million in federal funding. Source


By 2035, the Bloch Tech Hub is projected to generate an estimated $8.7 billion in annual economic output and create up to 8,000 high-paying jobs in the region. Source


The Bloch Tech Hub will initially focus on the financial sector, with plans to later adapt its QIST-enabled solution framework to meet the needs of other industries such as transportation, manufacturing, healthcare, and defense. Source


What's Next for Quantum Technology in Illinois?


Illinois is positioning itself at the forefront of quantum technology innovation, with ambitious plans and supportive legislation that could transform the state into a global hub for quantum computing. The recent proposals and investments signify a promising future for quantum technology in Illinois. Here's a look at what’s next for this burgeoning field in Illinois.


The Quantum Manhattan Project


One of the most significant developments is the proposal for a $50 billion "Quantum Manhattan Project." Illinois Governor JB Pritzker has voiced strong support for this initiative, which aims to establish Illinois as a leader in quantum computing and related technologies. This project is inspired by the original Manhattan Project, which was a massive, collaborative effort during World War II that led to significant advancements in nuclear technology. Similarly, the Quantum Manhattan Project seeks to harness the power of quantum mechanics to revolutionize computing and data processing .


The initiative focuses on bringing together academia, industry, and government to create a robust quantum ecosystem. The University of Illinois Urbana-Champaign, a pioneer in quantum research, will play a crucial role in this endeavor. The project aims to secure federal funding, attract private investment, and foster collaboration among the state's top research institutions and tech companies.


Legislative Support and Tax Breaks


To support the growth of the quantum sector, Illinois lawmakers approved $500 million in 2024 tax incentives for companies investing in quantum computing. This move is part of a broader strategy to make Illinois an attractive destination for tech companies and startups focusing on quantum computing , which in part helped with Chicago being selected in July 2024 as the location for PsiQuantum, a Silicon Valley startup, to build the world's largest quantum computer.


Educational and Research Initiatives


Illinois has also made substantial investments in education and research to support its quantum ambitions. The Illinois Department of Innovation & Technology (DoIT) has launched several initiatives to promote STEM education and quantum research. These initiatives aim to build a strong pipeline of talent and ensure that the state has the skilled workforce needed to support its quantum ambitions .


Programs like the Illinois Quantum Information Science and Technology Center (IQUIST) at the University of Illinois are at the forefront of this effort. IQUIST brings together experts from various disciplines to conduct cutting-edge research in quantum information science. The center also offers educational programs to train the next generation of quantum scientists and engineers.


Economic Impact


The potential economic impact of these initiatives is significant. The Quantum Manhattan Project, PsiQuantum campus, and supportive legislation are expected to create thousands of high-paying jobs and attract billions of dollars in investment to Illinois. This influx of talent and capital will spur innovation, drive economic growth, and position Illinois as a global leader in quantum technology.


Moreover, the advancements in quantum computing have the potential to revolutionize various industries, from healthcare and finance to manufacturing and logistics. Quantum computers can solve complex problems much faster than classical computers, leading to breakthroughs in drug discovery, financial modeling, and supply chain optimization.


Challenges and Opportunities


While the future of quantum technology in Illinois looks promising, there are challenges to overcome. Developing practical and scalable quantum computers is still a formidable task, requiring significant advancements in hardware, software, and error correction techniques. Moreover, there is a global race to lead in quantum technology, with countries like China and the United States making substantial investments.


However, Illinois is well-positioned to meet these challenges. The state's strong research institutions, supportive government policies, and vibrant tech ecosystem provide a solid foundation for success. By fostering collaboration among academia, industry, and government, Illinois can accelerate the development and commercialization of quantum technologies.


Looking Ahead


The next few years will be crucial for the development of quantum technology in Illinois. With the proposed Quantum Manhattan Project, supportive legislation, and substantial investments in education and research, the state is poised to become a leader in this transformative field. The potential benefits of quantum technology are immense, and Illinois is taking bold steps to ensure it remains at the cutting edge of this exciting frontier.


As the state moves forward, continued collaboration and investment will be key to realizing the full potential of quantum technology. By leveraging its strengths and addressing the challenges ahead, Illinois can secure its place as a global hub for quantum innovation and drive economic growth for years to come.


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Illinois Biotechnology Investment FAQs





Rust Belt to Green Belt FAQs

What is the "Rust Belt to Green Belt" initiative in Illinois?

The "Rust Belt to Green Belt" initiative in Illinois is a transformative effort to shift the region from its industrial past to a hub of sustainable climate innovation. It involves targeted decarbonization funds and a commitment to clean energy and technology development.


What role does Innovate Illinois play in this initiative?

Innovate Illinois, launched by Governor JB Pritzker in partnership with various organizations, is a coalition aimed at securing federal funding for science, technology, and climate initiatives. It focuses on leveraging Illinois' innovation hubs and educational institutions to drive economic development and technological progress.


How is the National Community Investment Fund (NCIF) involved?

The NCIF is leading a Midwest consortium to submit a $1 billion proposal to the EPA’s Clean Communities Investment Accelerator. This proposal is a part of the "Rust Belt to Green Belt Initiative," emphasizing the region's commitment to sustainable climate innovation.


What are the goals of the Chicagoland Climate Investment Alliance?

The Alliance aims to create an interconnected climate innovation ecosystem, accelerate local startups, mobilize substantial climate investments, secure federal support, and strengthen collaborations to foster innovation and growth in climate-resilient technologies.


What specific areas will the initiative focus on?

The initiative will focus on sectors like agtech, clean energy, water, food, recycling, building decarbonization, and materials-science innovations.


How will this initiative impact job growth and economic development?

The initiative is expected to spur job growth and economic development in Chicagoland and the broader Midwest, particularly in specialized sectors related to climate innovation.


What federal acts support this initiative?

The initiative is supported by federal acts such as the CHIPS and Science Act, the Inflation Reduction Act, and the Infrastructure Investment and Jobs Act.


Who are the founding members of the Chicagoland Climate Investment Alliance?

Founding members include public, private, and civic entities like World Business Chicago, the State of Illinois, City of Chicago, Invenergy, ComEd, Nicor Gas, Jones Lang Lasalle, and Wanxiang America.


What is the role of higher education institutions in this initiative?

Higher education institutions in Illinois are key partners in developing technologies, scientific advances, and training the workforce needed for climate innovation. They will collaborate with the private sector and government in this initiative.


How can businesses and individuals get involved in the initiative?

Businesses and individuals can engage with the initiative by partnering with the state and education system for research, technology, and workforce development opportunities related to innovation and clean energy.


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Not far behind semiconductors, electric vehicles, and new energy in terms of advanced technology interests, artifical intellegence regulation is gaining traction.

Illinois and Artificial Intelligence: Laws and Regulations in Focus

Artificial Intelligence (AI) is rapidly transforming various sectors, from healthcare to transportation. As AI technologies become more integrated into our daily lives, there's a growing need for regulations to ensure their ethical and responsible use. Illinois, like many other states, is actively considering and implementing laws related to AI. This article delves into the current landscape of AI laws and regulations in Illinois and what's on the horizon.

Employers Using AI in Hiring: A Word of Caution

The use of AI in hiring processes is becoming increasingly common. Employers leverage AI-driven tools to screen resumes, conduct virtual interviews, and even predict a candidate's future performance. However, Illinois' Artificial Intelligence Video Interview Act, effective since January 1, 2020, mandates employers to notify applicants when they use AI to analyze video interviews. The law also requires employers to explain how the AI works and what general types of characteristics it uses to evaluate applicants. This is a significant step towards ensuring transparency in AI-driven hiring processes.

Task Force on AI: A Proactive Approach

Recognizing the transformative potential of AI, Illinois has taken a proactive approach by considering the establishment of a task force. This task force aims to determine how the state can utilize and regulate AI effectively. By bringing together experts from various fields, the state hopes to create comprehensive guidelines and policies that will foster innovation while safeguarding the interests of its residents.

A Call for Federal AI Policy: Transparency and Risk Management

Illinois Attorney General Kwame Raoul has emphasized the need for a federal AI policy. He advocates for a policy that mandates transparency and considers the potential risks associated with AI. By having a unified federal policy, states like Illinois can better navigate the challenges posed by rapidly advancing AI technologies.

A Broader Perspective: AI Legislation Across States

While Illinois is actively considering AI regulations, it's essential to understand the broader landscape of AI laws in the U.S. In 2022, at least 17 states introduced general AI bills or resolutions. States like Colorado, Florida, and Vermont have enacted AI-related laws, with Colorado and Vermont establishing task forces to study AI. Washington state has taken a unique approach by providing funding for an inventory of all automated decision systems used by state agencies.

AI Regulation, In Conclusion

As AI continues to evolve, it's crucial for states like Illinois to stay ahead of the curve by implementing robust regulations. By ensuring transparency, promoting ethical use, and fostering innovation, Illinois is positioning itself as a leader in the AI regulatory space.

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