SPRINGFIELD
The post-session hangover has finally started to wear off. Our last newsletter summarized energy and environment issues through the end of session - see that write-up for more info. Session ended with summer negotiations expected on a big energy package, but still no details on when, where, or what. So what happens next is still unknown. Again, the Illinois Chamber ended the session seeing some solid reforms for the business community, but also while taking some hits (graduated income tax, minimum wage).
One of those wins I mentioned last week but want to highlight more here - tax incentives for data centers. It will bring some big energy users to Illinois' borders and isn't just a win for overall economic development, but a win for energy. The Chamber introduced
SB1591 but ultimately got the tax incentive through the larger budget negotiations and inserted in the vertical capital bill,
SB690 (pg. 37-47). Leading a coalition of data center stakeholders and over years of serious leg work, this new program is finally a reality.
Beginning in January we released an
economic impact study that demonstrated the potential economic benefits such an incentive would have on our state. The report found that one new large data center constructed in 2018 would have a potential total economic impact on the Illinois economy of approximately:
* 3,360 jobs
* $203.9 million in labor income
* $521.7 million in economic output
This economic activity would also be responsible for generating a total of approximately $66.7 million in tax revenue in 2018, of which $20.2 million would be state and local tax revenue.
The language creates a 100% state and local sales tax exemption for the purchasing of qualified tangible personal property for qualifying new and existing data centers. In addition, this legislation creates an enhanced income tax credit for new data centers built in underserved areas. Qualifying data centers must meet various capital investment targets, employ a certain amount of people, meet various energy building standards, enter into project labor agreements, and finally, report various tax benefits to DCEO. DCEO shall submit a report to the General Assembly and the Governor yearly on the programs progress. The program sunsets after 10 years but any agreement entered with DCEO may last up to 20 years.
If anyone has any questions on the legislation, please reach out to Tyler Diers at
tdiers@ilchamber.org.
WASHINGTON D.C.
The U.S. EPA is expected to finalize the Affordable Clean Energy plan this week. The ACE is the Trump Administration's replacement plan for the Clean Power Plan, which was stayed in 2016. The draft plan was released last year. The ACE plan asks states to consider heat-rate improvements at individual power plants rather than setting emissions reduction goals for states. The ACE rule is expected to give states three years to complete their implementation plan.
The House Public Utilities Committee held a subject matter hearing last year to discuss the state approach to the ACE rule. The rule was still in draft form at the time. The Chamber testified at that hearing, focusing on the stakeholder process, the need for flexibility, recognizing the trend in greenhouse gas emission reductions based on market forces, and encouraging the state to work together. Our testimony from the October 2018 hearing is
here.
More information on what is expected here.
EDIE NOMINATIONS BEING ACCEPTED
It's that time of year! The Illinois Chamber of Commerce is now accepting nominations for the 11th Annual Economic Development in Illinois Awards - the Edies. The Edies honor outstanding economic development projects completed in the calendar year of 2018 that imagine, design, invest, build and bring jobs, growth and prosperity to Illinois communities. More information can be found at the
Edie homepage.
Nominations are being accepted now until 5 p.m. July 12, 2019. For additional questions, please contact Katie Stonewater at kstonewater@ilchamber.org.
ICC POLICY SESSION - JUNE 26
Commissioner Kimbrell is hosting a policy session on summer preparedness on June 26
th. Illinois utilities and both grid operators will discuss the challenges of seasonal preparedness, methods to generate enough electricity at least-cost, and plans to manage the transmission system to ensure reliability during peak usage. The formal agenda has not been released. The event will take place at the ICC's office in Chicago 160 N. LaSalle, 8
th Floor from 11am to 1.30pm.
More information here.
UPCOMING EVENTS
We are in the process of planning our next quarterly meeting and a few smaller events. Hope to have dates to announce soon!
ARTICLES OF INTEREST
