Gov. Pritzker Signs $45B ‘Rebuild Illinois’ Legislation; Includes Casino Expansion
The historic plan was passed with significant bipartisan supermajorities and will investments in roads, bridges, railways, universities, early childhood centers and state facilities like the crime lab and veterans' homes over the next six years. The package of bills also includes new incentives for data center projects.
SPRINGFIELD, IL—Gov. JB Pritzker signed into law a package of bills on Friday that will finance a $45-billion infrastructure plan, increase taxes and fees, and expand casino gaming in the state with six new casinos in the offing for: Chicago, Waukegan, Rockford, the South Suburbs, Williamson County (Walker’s Bluff), and Danville.
The historic plan was passed with significant bipartisan supermajorities and will investments in roads, bridges, railways, universities, early childhood centers and state facilities like the crime lab and veterans’ homes over the next six years. The package of bills also includes new incentives for data center projects. “Rebuild Illinois” is expected to create and support an estimated 540,000 jobs over the life of the plan.
“With this historic $45-billion capital plan, we’re fixing decades-long problems, creating good jobs, improving communities for the next generation—and doing it together, across party lines,” said Gov. Pritzker. “The Rebuild Illinois plan transforms our state’s approach to transportation infrastructure, finally treating our roads, bridges, and railways like 21st century investments and not relics of the past…With these investments, we’re creating and supporting hundreds of thousands of new jobs in our state. This is more than an infrastructure plan. This is a job creation plan the likes of which our state has never seen.”
The big winner in the infrastructure plan will be the state’s roads and bridges, which will receive $33.2 billion in upgrades, including $14 billion for new roads and bridges; $10.4 billion for existing state roads and bridges another $3,.9 billion in assistance to local governments to rebuild their roads and bridges. The plan also earmarks $1 billion for passenger rail, including Amtrak and other inter-city rail projects.
The infrastructure bill also earmarks $1.8 billion for economic and community development, as well as $400 million for statewide broadband expansion; $200 million for affordable housing and $200 million for hospital and healthcare transformation.
Sone of a host of revenue raisers included in the package were the legalization of sports betting in the state, as well as the approval to build six new casinos.
The new casinos are expected to create thousands of construction jobs and full-time, permanent jobs, including an estimated 4,000 jobs in Chicago, more than1,500 in Rockford, nearly 2,000 in Walker’s Bluff, and 1,000 in Danville. Sports betting is estimated to generate approximately $58 million to $102 million annually, which will be dedicated to infrastructure projects across the state, including universities, affordable housing and hospitals.
The legislation also calls for the expansion of video gaming terminals and at horse tracks in the state and an increase in the VGT tax.
Ongoing revenues from the various gaming expansions included are estimated to total at least $350 million annually at full implementation and will support expected vertical capital debt service. Upfront revenues from license fees are scheduled to support pay-go capital costs, state officials noted.
Among the host of measures signed into law by the governor that impact the real estate industry was an exemption from sales and electricity taxes for data centers that have or plan to make a $250-million investment in Illinois. If a data center is seeking an exemption for the construction or rehabilitation of its structure, the data center must require all contractors and subcontractors to comply with the responsible bidder sections of the Illinois Procurement Code. Another measure creates a 20% income tax credit against wages if the investment by the data center is in an underserved area. The bill requires an annual report to the governor and the General Assembly on the tax credit’s outcome and effectiveness.
“The Illinois Chamber applauds Governor Pritzker for his approval of this historic, bipartisan investment in our state’s future,” said Rebecca Mason, executive director of the Infrastructure Council at the Illinois Chamber of Commerce. “The Rebuild Illinois package, along with the “Lockbox Amendment” approved by Illinois voters in 2016, will ensure our transportation funds will repair our aging infrastructure. Additionally, its pro-business reforms, especially the data center tax incentive, will spur private investment in Illinois businesses and our local economies.”