February 6, 2023 – Governor Pritzker has announced $40 million in Rebuild Illinois Capital Funds to supercharge the development of megasites – large, developed sites ready for occupancy for manufacturers, distribution centers, industrial centers, and more. The competitive grant opportunity is open to governments, private businesses, or non-profits to support site development in order to attract large-scale industrial investments in underutilized areas and former industrial sites.
“Major job creators are consistently looking for investment-ready sites they can get up and running in a short amount of time – and Illinois is home to some of the largest such sites in the country, all ripe for fresh development,” said Governor JB Pritzker. “The new Megasites Investment Program grants will help communities innovate their own business attraction efforts and will spur economic development in communities across our great state.”
With sectors like clean energy and manufacturing rapidly expanding in the U.S., major job creators are looking for large, investment-ready sites to locate their growing businesses. By providing grants that enable entities to create investment-ready sites, Illinois is increasing its competitiveness for large-scale investment.
The Megasites Investment Program funding will be issued through a competitive Notice of Funding Opportunity (NOFO) and is open to private entities, non-profits, or local governments. Grants will range from $250,000 to $5 million, with the grant award amount determined by acreage (up to $5,000 per acre). Eligible sites must contain at least 200 contiguous acres and applicants must own or have an agreement in place to acquire the property at the time of the application. The NOFO opportunity also requires 1:1 capital investment match.
Underserved areas and areas located in Opportunity Zones are prioritized through the application process, which allows for the developed sites to market additional incentives to potential business prospects.
Funding can be used on a variety of site development expenses, including infrastructure expenses such as roads, electricity, water, broadband and other utilities; site development expenses like grading and drainage, rehabbing existing structures, remediation and cleanup; and land acquisition and related expenses.
Illinois is a national leader in manufacturing, warehousing, and distribution – serving as home to three of the top ten industrial sites in the country, including Decatur.
“Megasites are a major draw for companies looking to locate or expand in Illinois and given our superior infrastructure and workforce there’s boundless investment opportunities throughout the state,”said DCEO Acting Director Kristin A. Richards. “Megasites are akin to a turn-key house: move-in ready with zero hassle – which is exactly what fast-growing businesses are looking for.”
One of the goals of the Megasites Program is to attract jobs creators and revitalization for areas that are underutilized, such as former industrial sites, brownfields, and agricultural sites. Whether it’s an industrial park featuring various businesses, or a large facility dedicated to manufacturing soup to nuts, megasites are designed to spur development and create jobs in Illinois’ communities.
Over the past several years, Illinois has launched new business attraction incentives while making improvements to its existing suite. Recent programs and improvements to business attraction include:
Reimagining Energy and Vehicles (REV Illinois)
Provides up to 100 percent income tax withholding for new jobs created and other benefits for manufacturers of Electric Vehicles, component parts, and related clean energy manufacturers.
Manufacturing Illinois Chips for Real Opportunity (MICRO)
Provides up to 100 percent income tax withholding for new jobs created for manufacturers of microchips and semiconductors and associated component parts.
Economic Development for a Growing Economy (EDGE):
With more than $1 billion in investment from companies receiving EDGE credits in 2022, EDGE is Illinois’ premier incentive program. EDGE provides competitive tax incentives to businesses in all industries locating or expanding in Illinois.
Enterprise Zones (EZs):
Designated zones designed to stimulate economic growth and neighborhood revitalization in economically depressed areas of the state through state and local tax incentives, regulatory relief, and governmental services.
High Impact Businesses (HIB):
Supports large-scale economic development activities by providing tax incentives to companies that make substantial capital investments in operations and create or retain a large number of jobs.
