Illinois Advanced Technology & Innovation Policy

Illinois does not regulate artificial intelligence through a single comprehensive AI code. Instead, its framework combines generally applicable civil-rights, employment, privacy, consumer-protection, procurement, records-management, and cybersecurity laws with requirements directed at particular technologies or uses.

What requirements apply when employers use artificial intelligence?

Effective January 1, 2026, the Illinois Human Rights Act expressly addresses the use of AI in employment decisions. The law applies when AI is used in connection with recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or other terms, privileges, or conditions of employment.

Employers may not use AI in a way that has the effect of subjecting an employee or applicant to discrimination based on a characteristic protected by the Illinois Human Rights Act. The law also prohibits using ZIP codes as proxies for protected classes and requires notice when AI is used for covered employment purposes.

The law does not categorically prohibit automated employment tools. It places responsibility on employers to understand how those tools are used, provide required notice, and prevent discriminatory outcomes. Administrative rules and agency guidance may further define when, how, and to whom notice must be provided.

How does this relate to Illinois’ earlier AI video-interview law?

The Artificial Intelligence Video Interview Act applies when an employer asks an applicant to record a video interview and uses AI to analyze the recording. Among other requirements, an employer must:

• Notify the applicant that AI may be used;

• Explain generally how the system works and what characteristics it evaluates;

• Obtain the applicant’s consent before evaluating the interview;

• Limit distribution of the video; and

• Comply with applicable deletion requirements when requested.

Employers should evaluate the video-interview law and the Illinois Human Rights Act together. Compliance with notice or consent requirements does not eliminate responsibility for discriminatory results, inappropriate data use, or obligations imposed by other employment and privacy laws.

What did the Illinois AI Task Force recommend?

Illinois established the Generative AI and Natural Language Processing Task Force to examine the effects of generative AI and recommend state policy. Its January 2025 report addressed subjects including:

• Transparency when government or private organizations use AI;

• Testing and evaluation for bias, accuracy, and safety;

• Procurement standards and vendor accountability;

• Privacy, cybersecurity, and intellectual-property concerns;

• Education and workforce preparation;

• The effect of AI on employment and public services; and

• Continued coordination among government, universities, industry, labor, and affected communities.

The report provides a policy framework, but its recommendations are not themselves binding legal requirements. Individual recommendations require legislation, agency rules, procurement policies, funding, or administrative action before they become enforceable or operational.

How should public bodies approach AI use?

State agencies, municipalities, schools, and other public bodies may use AI to improve research, administration, constituent services, translation, document processing, fraud detection, and other functions. The use of AI does not displace existing public responsibilities.

Depending on the application, public bodies should consider:

• Whether a human decision-maker remains accountable for consequential decisions;

• Whether the system has been tested for accuracy, bias, security, and accessibility;

• What information is supplied to or retained by the vendor;

• Whether generated material becomes a public record or must be retained;

• Whether confidential, privileged, personal, or protected information may be disclosed;

• Whether procurement documents provide sufficient audit, security, ownership, and termination rights;

• How affected individuals are notified and permitted to question or correct an AI-assisted decision; and

• Whether the proposed use complies with civil-rights, employment, records, privacy, and sector-specific laws.

Public agencies should distinguish low-risk administrative assistance from systems that influence eligibility, employment, enforcement, education, health, benefits, or other consequential decisions. Higher-impact uses warrant stronger testing, documentation, human review, and opportunities for appeal.

What should organizations do before adopting an AI system?

A practical governance process should begin with the proposed use rather than the product’s marketing description. Organizations should identify the decision being supported, the information the system receives, the people who may be affected, and the law governing that activity.

Common implementation steps include:

1. Inventorying AI systems already used by employees and contractors;

2. Classifying uses according to their potential legal and operational risks;

3. Reviewing vendor data, security, accuracy, and bias-testing practices;

4. Assigning responsibility for human review and final decisions;

5. Establishing notice, documentation, retention, and complaint procedures;

6. Training employees on permitted and prohibited uses; and

7. Reassessing systems as their models, data sources, or intended uses change.

AI-related privacy, biometric, children’s-data, surveillance, and cybersecurity requirements are addressed separately on Illinois Capitol Group’s Illinois Data Privacy & Cybersecurity Policy page.

Sources & Further Reading:

• Illinois General Assembly – Public Act 103-0804

• Illinois Human Rights Act – Employment Provisions

• Illinois Department of Human Rights

• Illinois Department of Human Rights – Legislative Updates

• Illinois Artificial Intelligence Video Interview Act

• Generative AI and Natural Language Processing Task Force – Authorizing Statute

• Illinois Department of Innovation & Technology

• Illinois Department of Innovation & Technology – AI Task Force Meetings and Materials

Illinois is attempting to build an interconnected ecosystem for quantum computing, microelectronics, semiconductor-related production, research commercialization, and specialized workforce development. The centerpiece is the Illinois Quantum and Microelectronics Park, supported by universities, national laboratories, government agencies, private companies, and regional economic-development organizations.

How are quantum technology, microelectronics, and semiconductors connected?

Quantum technology includes computing, sensing, communications, algorithms, materials, and related applications based on quantum mechanics. Although quantum computers differ from conventional computers, their development depends on many capabilities associated with microelectronics and semiconductor industries, including:

• Advanced materials and component manufacturing;

• Photonic and electronic chips;

• Cryogenic systems and other specialized equipment;

• Precision fabrication, packaging, testing, and quality control;

• Software, algorithms, and systems integration; and

• Secure domestic supply chains.

Illinois’ strategy therefore extends beyond attracting a single quantum-computing company. It seeks to support the researchers, component manufacturers, suppliers, technicians, software developers, end users, and educational institutions needed to move technology from laboratory research into commercial production.

What is the Illinois Quantum and Microelectronics Park?

The Illinois Quantum and Microelectronics Park, or IQMP, is a planned 128-acre research and technology campus at the former U.S. Steel South Works property on Chicago’s South Side. It is managed by a University of Illinois-affiliated organization and is intended to provide facilities and infrastructure for quantum and advanced-microelectronics research, development, scaling, and commercialization.

The first development phase is expected to include:

• Facilities for anchor tenant PsiQuantum;

• Shared cryogenic infrastructure;

• A Quantum Research Center;

• Space for additional companies, researchers, and suppliers; and

• Workforce, education, and industry-partnership activities.

The National Quantum Algorithm Center at the IQMP is also being developed as a platform through which companies, researchers, universities, and national laboratories can work on quantum algorithms and potential applications in areas such as pharmaceuticals, energy, finance, chemistry, and materials science.

What is the project’s current status?

The IQMP has moved from an announced concept into site preparation, remediation, construction, organizational development, and partner recruitment. Because the campus occupies a former industrial property, implementation includes Illinois Environmental Protection Agency oversight, environmental remediation, engineered barriers, monitoring, and public access to site information.

PsiQuantum has begun developing its planned facility as the park’s anchor tenant. Its long-term objective is to build a fault-tolerant quantum computer using photonic technologies and semiconductor-manufacturing methods. That technological objective should be distinguished from work already completed: construction activity, capital commitments, partnerships, and research programs can be documented now, while the future performance and commercial impact of the proposed computer remain prospective.

What role does the Bloch Quantum Tech Hub play?

The Bloch Quantum Tech Hub is a regional initiative spanning Illinois, Indiana, and Wisconsin. It connects universities, national laboratories, manufacturers, economic-development organizations, and technology companies working on quantum materials, components, systems, and commercialization.

In July 2026, the U.S. Economic Development Administration announced its intent to provide the Bloch Quantum Tech Hub with $30 million to scale domestic production of quantum materials, components, and subsystems. This represents a shift from the hub’s earlier federal designation into funded implementation.

The regional hub and the IQMP are related but not identical. The IQMP is a physical campus and operating organization in Chicago, while the Bloch Quantum Tech Hub is a broader regional consortium and economic-development strategy.

How does Illinois support semiconductor and microelectronics investment?

The Manufacturing Illinois Chips for Real Opportunity Act, commonly called the MICRO Act, authorizes negotiated incentives for qualifying manufacturers of microchips, semiconductors, and associated component parts. Depending on the project and agreement, available incentives may include income-tax credits, construction-related benefits, sales-tax exemptions, and other assistance tied to investment, employment, and operating commitments.

Federal programs under the CHIPS and Science Act separately support semiconductor manufacturing, research, workforce development, and supply-chain security. State incentives do not guarantee federal funding, and federal awards do not eliminate state and local requirements involving land use, utilities, environmental review, workforce commitments, or public accountability.

What policy and implementation questions remain?

Major public investments in emerging technology require continued evaluation. Relevant questions include:

• Which infrastructure costs are borne by the state, local governments, utilities, developers, and participating companies?

• What performance requirements, reporting obligations, repayment provisions, or other safeguards accompany public incentives?

• How will Illinois institutions prepare technicians and other workers in addition to advanced-degree researchers?

• Can Illinois companies participate in supplier, construction, professional-service, and commercialization opportunities?

• How will residents and surrounding communities participate in planning and obtain access to employment and contracting opportunities?

• How will environmental remediation, electricity and water use, transportation, and long-term site stewardship be monitored?

• Which announced economic, employment, and technological benefits have been realized, and which remain projections?

The success of Illinois’ strategy will ultimately depend on more than constructing facilities. It will require sustained research, reliable infrastructure, successful technology development, workforce pipelines, supplier participation, private investment, and transparent measurement of public benefits.

Sources & Further Reading:

• Illinois Quantum and Microelectronics Park

• IQMP – Frequently Asked Questions

• IQMP – National Quantum Algorithm Center

• Illinois Environmental Protection Agency – IQMP Information and Site Documents

• U.S. Economic Development Administration – 2026 Tech Hub Implementation Awards

• Chicago Quantum Exchange

• DCEO – Illinois Business Incentives and Tax Credits

• Illinois General Assembly – Manufacturing Illinois Chips for Real Opportunity Program

• National Institute of Standards and Technology – CHIPS for America

Data centers support cloud computing, artificial intelligence, digital communications, financial services, research, and many other parts of the modern economy. Their rapid growth also creates significant demands for electricity, transmission infrastructure, water, land, backup generation, and local public services. Illinois policy is consequently shifting from a primary emphasis on attracting data centers toward a broader examination of who pays for their infrastructure and how their community and environmental impacts should be managed.

How has Illinois encouraged data-center development?

The Illinois Data Center Investment Program was established to attract large capital investments and technology-related economic activity. Qualifying owners, operators, and tenants may receive exemptions from specified state and local taxes on eligible equipment, construction materials, and other qualifying purchases.

Eligibility and incentive agreements may include requirements involving:

• Minimum capital investment;

• Job creation and compensation;

• Construction and building standards;

• Project location and operation;

• Reporting and certification;

• Compliance with the terms of a memorandum of understanding; and

• Additional credits for qualifying construction activity in designated underserved areas.

These state incentives operate separately from local zoning approvals, utility-service agreements, property-tax arrangements, building permits, environmental requirements, or community-benefit commitments.

What changed in 2026?

On June 5, 2026, Governor JB Pritzker directed the Illinois Department of Commerce and Economic Opportunity to pause processing agreements under the Data Center Investment Program beginning July 1, 2026. Agreements entered into before that date are to be honored.

The administrative pause followed the General Assembly’s failure to enact a comprehensive data-center framework during its spring session. It does not prohibit construction of data centers or automatically revoke previously approved incentives. It pauses new state incentive agreements while the Governor and legislators consider additional requirements.

The Governor’s proposed framework called for consideration of:

• A separate electricity-rate class for data centers;

• Assignment of data-center-related generation, transmission, distribution, and water-system costs;

• Energy- and water-efficiency standards;

• Requirements that data centers provide or finance new clean-energy resources;

• Interruptible electric service under specified grid conditions;

• Water-use permits, reporting, and reuse;

• Continued air-quality protections for backup and on-site generation;

• Public reporting of electricity and water consumption;

• Restrictions on nondisclosure agreements with local governments;

• Public notice and community participation; and

• Community-benefit agreements.

These items describe a proposed policy framework, not a list of requirements already enacted statewide. Future legislation, administrative action, or local ordinances would be necessary to implement many of them.

How does the Illinois AI Cabinet affect data-center policy?

On September 22, 2026, Governor JB Pritzker issued Executive Order 2026-07 creating the Illinois Artificial Intelligence Cabinet. Although the Cabinet’s responsibilities extend beyond data centers, the order specifically directs it to evaluate whether Illinois should:

• Condition data-center tax incentives, permits, or operational approvals on compliance with AI safety, accountability, and transparency standards;

• Address the energy burden that AI-related data centers may place on the Illinois electric grid and existing ratepayers, including effects arising through PJM Interconnection;

• Incorporate AI safety and accountability standards into state procurement and contracting; and

• Consider additional accountability mechanisms for harms caused by advanced AI systems.

The executive order does not itself amend the Data Center Investment Program, create a new electricity-rate class, impose new permitting requirements, or establish an energy-use standard. Instead, it adds AI safety and accountability to the issues state officials may consider when developing the next phase of Illinois data-center policy.

The Cabinet’s work could connect several policy debates that previously were often considered separately: regulation of advanced AI developers, state technology procurement, data-center incentives, local land-use approvals, electricity demand, infrastructure costs, and protections for communities and existing utility customers.

Relevant implementation questions include:

• Whether safety and transparency conditions would apply to data-center owners, tenants, AI developers, or some combination of those entities;

• Whether state incentive conditions would differ from local zoning, permitting, or development-agreement requirements;

• How compliance would be measured and which agency would verify it;

• Whether requirements would apply only to facilities supporting covered frontier AI systems or to a broader category of data centers;

• How utilities, the Illinois Commerce Commission, PJM, and state agencies would evaluate AI-related electricity demand and infrastructure costs;

• Whether existing projects or previously approved incentive agreements would be affected; and

• How state requirements would interact with federal law, other states’ AI laws, and private safety standards.

Until the Cabinet issues recommendations or Illinois adopts additional legislation, regulations, permit conditions, or incentive requirements, these subjects should be treated as matters under evaluation rather than existing statewide mandates.

Why are electricity costs and grid reliability central to the debate?

Large data centers can require continuous amounts of electricity comparable to major industrial facilities or communities. New loads may require generation, substations, transmission lines, distribution improvements, or other infrastructure.

The central policy question is how these costs and risks should be allocated. Policymakers are considering whether data centers should:

• Pay rates designed specifically for unusually large and concentrated loads;

• Make long-term financial commitments before utilities construct new infrastructure;

• Bear costs that would otherwise be spread among residential and existing business customers;

• Supply or finance additional electricity generation;

• Reduce consumption during periods of system stress; and

• Disclose anticipated and actual electricity demand.

These questions involve state regulators, utilities, regional transmission organizations, local governments, developers, and energy customers. Approval of a local development project does not by itself determine who pays for regional generation or transmission upgrades.

How do water, land use, and environmental impacts differ among projects?

Data centers vary substantially in their size, technology, cooling systems, water consumption, energy sources, and use of backup generators. Project-specific analysis is therefore more useful than assuming every facility will have the same effects.

Relevant questions include:

• How much water will the facility withdraw or purchase, and during what seasons?

• Will water be consumed, discharged, recycled, or returned to the system?

• What electricity demand is expected at full buildout?

• Will on-site or backup generation require air permits?

• Is the proposed site compatible with nearby homes, businesses, agriculture, or natural resources?

• What noise, lighting, traffic, or construction impacts may occur?

• What local infrastructure must be expanded?

• How many permanent jobs will remain after construction?

• What tax revenue will the facility generate after exemptions, abatements, or other incentives?

Transparent projections and post-development reporting can help communities compare anticipated economic benefits with infrastructure demands and long-term public costs.

What authority do local governments retain?

Municipalities and counties may have responsibility for zoning, special-use permits, building approvals, road access, water and sewer service, emergency planning, and locally negotiated incentives. School districts, fire protection districts, and other taxing bodies may also be affected by property-tax decisions or the need for additional services.

Before approving a project or development agreement, local officials may consider:

• Independent review of projected electricity and water demand;

• Full-buildout scenarios rather than only the first construction phase;

• Infrastructure and utility commitments;

• Property-tax abatements and effects on overlapping taxing bodies;

• Construction employment compared with permanent employment;

• Emergency-response and fire-protection needs;

• Noise, generator, and environmental safeguards;

• Public reporting and enforcement provisions;

• Financial security if a project is delayed, downsized, or abandoned; and

• Community-benefit commitments with measurable obligations.

Local approval cannot resolve every regional energy issue, but it can establish clearer expectations for land use, infrastructure, taxation, reporting, and community impacts.

What should policymakers monitor next?

The 2026 incentive pause makes data-center policy an active implementation and legislative issue. Matters to monitor include:

• Whether Illinois enacts a comprehensive statewide framework;

• Whether and under what conditions DCEO resumes new incentive agreements;

• Utility and Illinois Commerce Commission proceedings involving large-load customers;

• Regional transmission and generation planning;

• State or local energy- and water-use reporting requirements;

• Chicago and other local government permitting or development policies;

• Changes to property-tax incentives and community-benefit expectations; and

• Whether promised investment, employment, tax revenue, and infrastructure benefits are realized.

Data centers are both advanced-technology infrastructure and large-scale industrial developments. Effective policy must account for their role in innovation while protecting ratepayers, natural resources, local governments, and surrounding communities.

Related property-tax and local-revenue issues are discussed on Illinois Capitol Group’s Illinois Property Tax Policy page.

ICG Podcast: A Roadmap for Data Center Policy Compromise

Recorded following the conclusion of the May 2026 legislative session, Roadmap for Data Center Policy Compromiseexamines the issues most likely to shape renewed negotiations during the fall veto session or the 2027 spring session.

The episode identifies several possible areas for agreement: requiring data centers to bear the infrastructure costs attributable to their electricity demand; improving disclosure and community engagement before major projects advance; and expanding water-use reporting or permitting for large industrial users. It also explains the more difficult issues involving data-center incentives and labor requirements, grid reliability and continuous-power needs, and whether new energy requirements should recognize nuclear power along with renewable generation.

This podcast reflects the proposals and stakeholder positions available in June 2026. It provides policy context rather than a statement of current law or a prediction that any particular compromise will be enacted.

Sources & Further Reading:

• State of Illinois — Executive Order 2026-07

• Governor’s Office — Establishment of the Illinois Artificial Intelligence Cabinet

• Governor’s Office – Gov. Pritzker Pauses New Data Center Tax Incentives

• DCEO – Incentives and Tax Credits

• Illinois Administrative Code – Data Center Investment Program

• DCEO – 2025 Data Center Investment Program Annual Report

• Illinois Commerce Commission

• PJM – Load Forecasting

• U.S. Department of Energy – Data Centers and Servers

Illinois’ biotechnology economy encompasses medical and pharmaceutical research, agricultural technology, food science, biological manufacturing, precision fermentation, and the production of chemicals, materials, ingredients, fuels, and agricultural inputs using biological processes. State policy increasingly focuses on connecting Illinois’ research institutions and agricultural resources with the facilities, workforce, financing, and manufacturing capacity needed to commercialize new products.

How do life sciences, biotechnology, biomanufacturing, and AgTech differ?

These fields overlap but are not interchangeable:

• Life sciences broadly include research and commercial activity involving medicine, pharmaceuticals, diagnostics, medical devices, biology, and human or animal health.

• Biotechnology uses biological systems, organisms, cells, or related technologies to develop products and processes.

• Biomanufacturing applies biotechnology at production scale to make materials, chemicals, medicines, ingredients, fuels, and other products.

• Precision fermentation programs microorganisms to produce particular proteins, enzymes, chemicals, or other outputs under controlled conditions.

• Agricultural technology, or AgTech, includes technologies used in crop and livestock production, agricultural inputs, food systems, equipment, data analysis, and the conversion of agricultural commodities into higher-value products.

Illinois’ competitive position is based partly on its ability to connect these fields rather than treating them as separate industries.

Why is Illinois positioned for growth in these industries?

Illinois combines several assets relevant to biotechnology and advanced manufacturing:

• Major research universities and medical institutions;

• Agricultural production and access to corn, soybeans, and other biological feedstocks;

• Existing food, chemical, pharmaceutical, and industrial-processing companies;

• Transportation, logistics, water, and energy infrastructure;

• University incubators, laboratories, pilot plants, and research parks;

• A manufacturing and skilled-trades workforce; and

• Access to Chicago-area capital, health systems, laboratories, and life-sciences companies.

The principal commercialization challenge is often not discovering a promising technology. It is moving that technology from laboratory research through pilot testing, regulatory review, financing, demonstration-scale production, and commercially viable manufacturing.

What is the iFAB Tech Hub?

The Illinois Fermentation and Agriculture Biomanufacturing Tech Hub, known as iFAB, is a consortium centered in Champaign, Piatt, and Macon Counties. Led by the University of Illinois Urbana-Champaign’s Integrated Bioprocessing Research Laboratory, it connects universities, agricultural producers, manufacturers, economic-development organizations, labor, investors, community colleges, and local governments.

Its “lab-to-line” strategy is intended to help companies move from research and product development to pilot production and commercial manufacturing within a connected Central Illinois region.

In 2024, the U.S. Economic Development Administration awarded iFAB approximately $51 million in Phase 2 Tech Hubs implementation funding. That award moved iFAB beyond its initial federal designation and into funded implementation.

How is iFAB’s implementation funding being used?

Federal, state, member, and partner resources support five principal areas:

• EnterpriseWorks 2.0: Expanded incubator facilities containing laboratories, offices, shared equipment, and specialized utilities for growth-stage companies;

• IBRL 2.0: Expansion of the Integrated Bioprocessing Research Laboratory’s pilot-scale capabilities;

• iPROOF: Shared infrastructure intended to help companies demonstrate and scale precision-fermentation and biomanufacturing processes;

• ADM fermentation capacity: Investment supporting larger-scale fermentation and production capabilities in Decatur; and

• Hub governance: Regional coordination, industry engagement, administration, performance measurement, and long-term development of the consortium.

These projects address different portions of the commercialization pipeline. Incubator and laboratory space support early development, pilot facilities help validate production processes, and larger facilities help companies determine whether a product can be manufactured at commercial scale.

How does the initiative connect agriculture with advanced manufacturing?

Biomanufacturing can create additional uses for Illinois agricultural commodities by converting biological feedstocks into higher-value products. Potential applications include:

• Food ingredients and alternative proteins;

• Enzymes and industrial chemicals;

• Agricultural inputs;

• Biomaterials and textiles;

• Pharmaceuticals and health-related products;

• Fuels and energy-related products; and

• Other replacements for products traditionally derived from petroleum or resource-intensive processes.

These potential uses do not guarantee that every technology will become commercially viable. Costs, market demand, regulatory approval, energy and water needs, intellectual property, production yields, and competition from established products all affect whether a laboratory innovation can support a sustainable business.

What public policies support commercialization?

Biotechnology and AgTech companies may draw on several types of public support rather than one biotechnology-specific incentive:

• Federal research, technology-hub, manufacturing, and economic-development grants;

• University laboratories, incubators, licensing, and research partnerships;

• Illinois Angel Investment and EDGE for Startups tax credits;

• EDGE incentives for qualifying job-creation and investment projects;

• Advancing Innovative Manufacturing tax credits for eligible capital investment;

• Employer training and apprenticeship programs;

• Site-development and infrastructure assistance; and

• Local economic-development tools.

Eligibility depends on the applicant, project, location, investment, employment commitments, and applicable program rules. A research grant, tax credit, infrastructure award, and negotiated development agreement serve different purposes and should not be presented as interchangeable sources of funding.

What workforce and implementation issues should policymakers monitor?

Successful growth requires more than scientists and advanced-degree researchers. Biomanufacturing facilities also need:

• Laboratory and quality-control technicians;

• Fermentation and process operators;

• Engineers and maintenance personnel;

• Electricians, pipefitters, construction workers, and other skilled trades;

• Food-safety and regulatory-compliance personnel;

• Supply-chain and logistics workers; and

• Business, intellectual-property, finance, and commercialization expertise.

Important policy questions include:

• Whether education and training programs align with actual employer needs;

• Whether smaller companies can afford access to specialized facilities;

• How intellectual property and university-industry partnerships are structured;

• Whether federal and state investments produce measurable Illinois employment and production;

• How water, energy, waste, transportation, and permitting needs are addressed;

• Whether farmers and Illinois suppliers participate in emerging supply chains; and

• Whether publicly supported facilities remain financially sustainable after initial grants expire.

The long-term measure of success will be whether Illinois can repeatedly move research into production, retain growing companies, build supply chains, and expand economic opportunity across both metropolitan and downstate communities.

Sources & Further Reading:

• iFAB Illinois Fermentation and Agriculture Biomanufacturing Tech Hub

• U.S. Economic Development Administration – Regional Technology and Innovation Hubs

• University of Illinois – iFAB Awarded $51 Million EDA Tech Hubs Grant

• University of Illinois Integrated Bioprocessing Research Laboratory

• University of Illinois Research Park

• Illinois Department of Commerce and Economic Opportunity – Incentives and Tax Credits

• Illinois Angel Investment Credit Program

• U.S. Department of Agriculture – Biotechnology

• U.S. Food and Drug Administration – Biotechnology Products

Illinois’ universities, national laboratories, research hospitals, manufacturers, entrepreneurs, and investors generate significant scientific and technical activity. Turning that activity into Illinois-based businesses and employment requires more than research funding. It also requires intellectual-property support, testing facilities, experienced management, investment capital, production sites, trained workers, and connections to customers and supply chains.

What is research commercialization?

Research commercialization is the process of converting an invention, discovery, or technical capability into a product, service, licensed technology, or operating business.

That process may include:

• Basic and applied research;

• Protection or licensing of intellectual property;

• Proof-of-concept development;

• Prototype construction and testing;

• Regulatory, safety, and market validation;

• Formation or expansion of a business;

• Pilot or demonstration-scale production;

• Attraction of private capital and customers; and

• Commercial-scale manufacturing and distribution.

Projects can fail or leave Illinois at any point in this process. A technology developed at an Illinois institution does not automatically result in an Illinois company, manufacturing facility, or workforce benefit.

How does Illinois support university–industry research?

Illinois supports partnerships intended to connect companies with the expertise, facilities, equipment, and intellectual property available through institutions of higher education.

The Illinois Innovation Vouchers Program provides eligible companies with support for collaborative research conducted with an Illinois college or university. Potential projects may involve product development, testing, prototyping, technology validation, specialized equipment, or other research needed to move an innovation toward commercialization.

Universities and regional innovation organizations also support commercialization through:

• Technology-transfer and licensing offices;

• Research parks and incubators;

• Shared laboratories and specialized equipment;

• Entrepreneurial education and mentoring;

• Corporate research partnerships;

• Federal grant-development assistance; and

• Connections among researchers, companies, investors, and public agencies.

The terms governing intellectual property, confidentiality, publication, licensing, project costs, and future commercialization should be established at the beginning of a partnership rather than after a technology has demonstrated value.

What financing is available to innovative companies?

Technology companies may require different forms of financing as they move from research to production. Potential sources include:

• Federal research and development grants;

• Small Business Innovation Research and Small Business Technology Transfer awards;

• University and laboratory partnerships;

• State or regional grants;

• Angel and venture-capital investment;

• Loans and credit-support programs;

• Strategic corporate investment; and

• Tax incentives associated with employment or capital investment.

Illinois’ Angel Investment Tax Credit Program is intended to encourage private investment in qualifying early-stage companies. EDGE for Startups allows certain newly formed businesses to retain qualifying employee withholding taxes as credits connected to job creation. These programs address different needs and do not substitute for sufficient private capital, customers, or a viable commercialization strategy.

Program availability, funding, eligibility, application periods, and award terms can change. Companies should verify current requirements before including a particular incentive in a financing plan.

How does Illinois support commercial-scale investment?

When a technology company progresses from research into production, it may need substantial investment in land, buildings, equipment, utilities, and workforce development.

Relevant Illinois programs may include:

• Advancing Innovative Manufacturing: Tax credits for qualifying capital investments that integrate advanced technologies into manufacturing processes;

• Economic Development for a Growing Economy: Negotiated tax credits connected to qualifying job creation, retention, investment, and training;

• EDGE for Startups: Employment-based credits structured for qualifying newly formed businesses;

• MICRO: Incentives for qualifying microchip, semiconductor, and component manufacturers;

• Prime Sites: Assistance for sites intended to accommodate significant business investment and employment;

• High Impact Business and Enterprise Zone programs: Tax benefits for qualifying investments and locations; and

• Local development tools: Infrastructure assistance, property-tax abatements, tax increment financing, or other locally authorized support.

These programs are not automatic reimbursements for any technology investment. Most require an application, agency or local approval, an executed agreement, documented performance, and continuing compliance.

How does workforce policy connect to innovation strategy?

Advanced industries need workers with different educational backgrounds and occupational skills. A successful workforce strategy must extend beyond scientists, engineers, and software developers to include:

• Laboratory and production technicians;

• Equipment operators and maintenance personnel;

• Electricians, machinists, pipefitters, and other skilled trades;

• Quality-control and regulatory personnel;

• Cybersecurity and information-technology workers;

• Project managers and supply-chain professionals; and

• Sales, finance, legal, and commercialization specialists.

Illinois supports employer and sector-based training through community colleges, universities, apprenticeship programs, the Employer Training Investment Program, and Manufacturing Training Academies. In 2026, the state expanded the Manufacturing Training Academy model at downstate community colleges, including programs focused on subjects such as biomanufacturing, metal fabrication, automation, and robotics.

Effective workforce programs should be connected to documented employer demand, recognized credentials, paid work experience, employment outcomes, and career advancement. Training enrollment alone does not establish that a program has created a sustainable workforce pipeline.

What should applicants consider before seeking an incentive?

An organization should first identify the obstacle that public support would address. Different programs assist with different stages of development.

Relevant questions include:

• Is the need research, equipment, construction, workforce training, operating capital, or commercialization assistance?

• Must the applicant be a business, university, nonprofit organization, local government, or consortium?

• Is the assistance provided as a grant, loan, tax credit, exemption, reimbursement, or negotiated agreement?

• Must the project demonstrate job creation, wage levels, capital investment, matching funds, or a particular location?

• Are costs incurred before approval eligible?

• What records, reports, audits, or certifications will be required?

• Are benefits contingent on future performance?

• Can credits or exemptions be recaptured if commitments are not met?

• Does accepting public support affect intellectual-property, procurement, prevailing-wage, or other obligations?

A strong financing strategy aligns each source with an eligible cost and avoids relying on projected assistance that has not been awarded or contractually committed.

How should Illinois measure the results of innovation investments?

Announcements of investment, projected employment, or anticipated economic impact are useful starting points but are not the same as completed results. Public evaluation should distinguish among:

• Funding announced, awarded, contracted, and spent;

• Facilities proposed, under construction, and operational;

• Temporary construction and permanent employment;

• Jobs promised, created, retained, and filled by Illinois residents;

• Research activity and commercially deployed products;

• Companies assisted and companies that remain or expand in Illinois;

• Private investment projected and actually obtained;

• Workers trained and workers placed in related employment; and

• Statewide benefits and benefits concentrated in a particular institution, company, or region.

Transparent performance measures allow policymakers to determine whether programs should be continued, revised, expanded, or redirected.

Sources & Further Reading:

• DCEO – Illinois’ 2024 Economic Growth Plan

• DCEO – Innovation Vouchers Program

• DCEO – Incentives and Tax Credits

• DCEO – Business Expansion and Relocation Resources

• Illinois Administrative Code – Employer Training Investment Program

• Illinois Innovation Network

• Illinois Science & Technology Coalition

• Illinois Small Business Development Centers

• Illinois Manufacturing Excellence Center

• Illinois workNet

• U.S. Small Business Administration – SBIR and STTR Programs

• National Institute of Standards and Technology – Manufacturing Extension Partnership

Use the following resources to locate current laws, programs, incentives, implementation materials, and related policy analysis. Program availability and application periods may change; confirm current requirements with the administering agency before relying on a funding or incentive opportunity.

Statewide Technology & Economic-Development Strategy

• DCEO – Illinois’ 2024 Economic Growth Plan
  Illinois’ five-year framework for targeted industries, business development, workforce, sites, infrastructure, and inclusive economic growth.

• Illinois Department of Commerce and Economic Opportunity
  Primary state agency for business assistance, incentives, grants, workforce programs, site development, and economic-development policy.

• Innovate Illinois
  Public-private coalition coordinating efforts to obtain federal investment and strengthen Illinois’ innovation ecosystem.

• Illinois Department of Innovation & Technology
  State government technology, cybersecurity, digital infrastructure, procurement, accessibility, and innovation information.

Artificial Intelligence Governance

• Illinois Human Rights Act – AI Employment Provisions
  Current statutory provisions governing discriminatory effects, ZIP-code proxies, and notice when AI is used for covered employment purposes.

• Illinois Department of Human Rights
  Agency responsible for administering and enforcing the Illinois Human Rights Act.

• Illinois Artificial Intelligence Video Interview Act
  Consent, notice, disclosure, and deletion requirements involving AI-analyzed applicant video interviews.

• Illinois Generative AI and Natural Language Processing Task Force – Authorizing Law
  Statutory responsibilities and subjects assigned to the state AI Task Force.

• National Institute of Standards and Technology – AI Risk Management Framework
  Voluntary federal framework for identifying and managing risks associated with the design, development, deployment, and use of AI.

Quantum, Microelectronics & Semiconductors

• Illinois Quantum and Microelectronics Park
  Official information on the Chicago campus, participating organizations, development activity, community engagement, and business opportunities.

• IQMP – Frequently Asked Questions
  Project descriptions, implementation information, workforce discussion, and environmental-remediation background.

• Chicago Quantum Exchange
  Regional university, national-laboratory, and industry collaboration supporting quantum research, education, and commercialization.

• DCEO – Manufacturing Illinois Chips for Real Opportunity Program
  State incentive information for qualifying microchip, semiconductor, and component manufacturers.

• National Institute of Standards and Technology – CHIPS for America
  Federal semiconductor manufacturing, research, workforce, and supply-chain initiatives.

• U.S. Economic Development Administration – Regional Technology and Innovation Hubs
  Federal program supporting designated regional technology hubs, including Illinois-connected quantum and biomanufacturing initiatives.

Data Centers & Computing Infrastructure

• Governor’s Office – Pause on New Data Center Tax Incentives
  June 2026 directive and proposed policy framework addressing electricity, water, environmental, consumer-cost, and community impacts.

• Roadmap for Data Center Policy Compromise — ICG Podcast, June 2026:

A focused discussion of potential Illinois negotiating paths involving infrastructure-cost responsibility, community transparency, industrial water use, data-center incentives, labor standards, grid reliability, and clean-energy procurement.

• Illinois Administrative Code – Data Center Investment Program
  Program eligibility, applications, agreements, certification, and compliance requirements.

• DCEO – Data Center Investment Program Annual Report
  State reporting on approved projects, investment commitments, incentives, and program activity through 2025.

• Illinois Commerce Commission
  Utility regulation, rate proceedings, infrastructure matters, and other issues affecting large electricity customers.

• PJM – Load Forecasting
  Regional information relevant to electricity-demand projections and resource-adequacy planning.

Life Sciences, Biomanufacturing & AgTech

• iFAB Illinois Fermentation and Agriculture Biomanufacturing Tech Hub
  Current information about Central Illinois projects, consortium members, workforce initiatives, sites, and business participation.

• University of Illinois Integrated Bioprocessing Research Laboratory
  Pilot-scale bioprocessing, testing, industry collaboration, workforce training, and commercialization resources.

• University of Illinois Research Park
  Startup incubation, corporate innovation, research commercialization, employment, and partnership information.

• U.S. Department of Agriculture – Biotechnology
  Federal agricultural-biotechnology policy, regulation, research, and public information.

• U.S. Food and Drug Administration – Biotechnology Products
  Federal regulatory-science information involving biotechnology-derived products.

Commercialization, Incentives & Workforce

• DCEO – Incentives and Tax Credits
  Current entry point for Illinois business tax credits, exemptions, capital-investment incentives, and related programs.

• DCEO – Innovation Vouchers Program
  Support for qualifying company research projects conducted with Illinois colleges and universities.

• DCEO – Business Expansion and Relocation Resources
  Site-selection, incentive, regional-development, and state business-assistance information.

• Illinois Innovation Network
  Statewide university network supporting research, entrepreneurship, workforce development, and regional innovation.

• Illinois Small Business Development Centers
  Business advising, planning, financing, exporting, and other assistance for startups and established companies.

• Illinois Manufacturing Excellence Center
  Illinois’ Manufacturing Extension Partnership organization providing technical and operational assistance to manufacturers.

• Illinois workNet
  State workforce, training, apprenticeship, career, and employer resources.

• U.S. Small Business Administration – SBIR and STTR Programs
  Federal research and commercialization funding for eligible small businesses and research partnerships.

Related Illinois Capitol Group Policy Pages

• Illinois Data Privacy & Cybersecurity Policy
  Biometric information, sensitive data, cybersecurity, surveillance, children’s privacy, and breach-response policy.

• Illinois Infrastructure Policy
  Transportation investment, project selection, public infrastructure, and local implementation.

• Illinois Education Policy & School Funding
  Education-to-career pathways, workforce programs, school funding, and artificial intelligence in schools.

• Illinois Property Tax Policy
  Property-tax incentives, abatements, development tools, taxing-district impacts, and local revenue considerations.

The following materials document earlier laws, proposals, designations, funding announcements, and planning efforts that helped shape Illinois’ current advanced-technology policies. They are preserved for historical and research purposes. Program terms, funding status, implementation schedules, participating organizations, and projected results may have changed since the original publication date.

For current information, consult the substantive articles and Illinois Advanced Technology & Innovation Policy Resources section above.

State Technology & Economic-Growth Strategy

• Illinois’ 2024 Economic Growth Plan — August 2024
  Five-year state strategy that identified quantum computing, life sciences, clean energy, advanced manufacturing, transportation, and other targeted industries. The plan also discussed site readiness, workforce development, business incentives, regional coordination, and assistance for communities that had not fully participated in prior economic growth.

Quantum, Microelectronics & Semiconductors

• Manufacturing Illinois Chips for Real Opportunity Program — Enacted in 2022
  Background on Illinois’ original semiconductor and microchip incentive framework.

• Chicago Region Designated as the Bloch Quantum Tech Hub — October 2023
  Announcement of the federal designation that established the regional hub before its later implementation funding.

• Illinois Quantum Technology Leadership Announcement — April 2024
  Earlier state discussion of the Bloch Quantum Tech Hub, research partnerships, and Illinois’ effort to attract federal quantum investment.

• Illinois Quantum and Microelectronics Park — Announced in 2024; groundbreaking in 2025
  Current official site for the park that developed from the earlier state quantum-investment proposals and announcements.

Historical investment figures and employment projections should be read as estimates made when the projects were announced, not as completed results.

Biotechnology, Biomanufacturing & AgTech

• Central Illinois Named a Federal Biomanufacturing Tech Hub — October 2023
  Original designation of the Illinois Fermentation and Agriculture Biomanufacturing Tech Hub. At that stage, iFAB was eligible to compete for implementation funding but had not yet received the subsequent award.

• iFAB Awarded Approximately $51 Million in Implementation Funding — July 2024
  Announcement that moved iFAB from federal designation into funded implementation.

• iFAB Tech Hub
  Current project information, included here so readers can compare the initial designation and award announcements with later implementation activity.

Artificial Intelligence Policy Development

• Illinois Artificial Intelligence Video Interview Act — Effective January 2020
  One of Illinois’ earliest laws directed specifically at an employment-related AI application.

• Generative AI and Natural Language Processing Task Force Law — Enacted in 2023
  Established the state task force and defined the subjects it was directed to investigate.

• Illinois Department of Innovation & Technology – Task Force Meetings — 2024–2025
  Agendas, minutes, and other materials documenting the task force’s development of its findings and recommendations.

• Public Act 103-0804 — Enacted in 2024; effective January 2026
  Historical enactment of the Illinois Human Rights Act amendments governing AI-assisted employment decisions. Because the law is now effective, current compliance information appears in the AI article above.

Data-Center Incentive Development

• 2022 Data Center Investment Program Annual Report

• 2023 Data Center Investment Program Annual Report

• 2024 Data Center Investment Program Annual Report

• 2025 Data Center Investment Program Annual Report

These reports document the expansion of Illinois’ incentive program before the Governor directed DCEO to pause processing new agreements beginning July 1, 2026. Existing agreements entered into before that date are to be honored.

Electric Vehicles & Clean-Technology Manufacturing

• DCEO – Reimagining Energy and Vehicles Program
  Background on Illinois’ incentive framework for qualifying electric-vehicle, renewable-energy, green-steel, and related manufacturing investments.

• Illinois Climate and Equitable Jobs Act — Enacted in 2021
  Broader clean-energy and workforce legislation that supplied context for several subsequent clean-technology initiatives.

Older electric-vehicle articles may remain in this archive, but current charging, transportation, manufacturing, and energy-policy developments should be addressed on the applicable Infrastructure or Energy policy pages.

Hydrogen Development

• Midwest Alliance for Clean Hydrogen — Federal hub selection announced in October 2023
  Historical background on the multi-state alliance and its selection for federal clean-hydrogen-hub award negotiations.

• University of Illinois System – Midwest Hydrogen Hub Selection — October 2023
  Contemporary explanation of Illinois’ anticipated role in the regional hub.

The initial selection, proposed federal funding, projected employment, and anticipated emissions benefits should not be treated as completed results. Current funding, project, tax-credit, infrastructure, and environmental developments should be verified before the hub is described as operational.

Climate-Investment & “Green Belt” Initiatives

• Illinois EPA – Climate Pollution Reduction Grants
  Current state information following Illinois’ 2024 selection for more than $430 million in federal implementation funding.

• U.S. EPA – 2024 Illinois Climate Pollution Reduction Grant Announcement — July 2024
  Original federal award announcement.

• Rust Belt to Green Belt Initiative Launch Coverage — October 2023
  Historical reporting on the public-private coalition and its effort to obtain federal clean-investment funding.

The Rust Belt to Green Belt materials reflect the coalition’s original proposal and anticipated financing strategy. They should not be used as evidence that every proposed program or investment was subsequently funded or implemented.

Archive Note

Historical materials are retained because they help explain how current Illinois policy developed. Inclusion does not indicate Illinois Capitol Group’s endorsement of a proposal, confirm that projected funding or employment occurred, or establish that a program remains available.