Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
Today’s roundup features more information on storm relief for those in need as well as a new grand opportunity through Verizon. Additionally, see below about an announcement on a new Economic Development Opportunity Zone and an announcement about High-Speed Internet access.
Finally, I’ll begin to share on a monthly basis the Chicago Fed Survey of Economic Conditions (CFSEC). This is a survey of organizations located in the Seventh Federal Reserve District. We’ve developed a partnership as well to bring you the Small Business Credit Survey. It is a national sample of small businesses, or firms with fewer than 500 employees, aimed at providing insight into firms’ financing and debt needs and experiences. Analysis of this dataset is issued through a series of reports.
*Government Affairs Roundup brought to you by CITGO*
Maryland Ruling May Impact New Illinois Taxes
A recent court ruling in Maryland could have significant implications for several newly enacted taxes in Illinois. Last week, Maryland’s tax court found that the state’s digital advertising gross revenues tax violates the federal Tax Freedom Act, as well as the Commerce Clause and the Due Process Clause of the U.S. Constitution.
Policy analysts say Illinois’ own 10% targeted advertising services tax may face similar legal challenges. Andrew Wilford, director of state policy for the National Taxpayers Union Foundation, noted that federal law prohibits discriminatory taxation of digital products.
“For example, you can’t tax digital advertising and not tax traditional advertising,” Wilford told The Center Square. “Unfortunately, that is what Illinois does, so this very much suggests that Illinois’ tax could be at risk of being struck down.”
Jared Walczak, a senior fellow at the Tax Foundation, said the Maryland case, more than five years in the making, could serve as a roadmap for challenges in other states.
“A Maryland court has no jurisdiction over Illinois,” Walczak said. “But an Illinois court, or ultimately a federal court, would be reviewing the same statutes, case law, and constitutional provisions—and could very well reach the same conclusions.”
Illinois’ targeted advertising tax is scheduled to take effect January 1, 2027, after being included in a broader revenue package signed into law by Gov. J.B. Pritzker in June.
Opposition to the measure is already underway. On Aug. 5, State Rep. Travis Weaver, R-Peoria, introduced House Bill 5807 to repeal the tax. Republican lawmakers have also filed legislation seeking to eliminate the state’s 0.2% digital assets tax and the governor’s proposed social media platform fee.
Walczak said those measures could face similar legal scrutiny. “In some ways, the arguments against Illinois’ social media tax may be even stronger,” he said, citing concerns over the law’s breadth and drafting.
Illinois’ digital assets tax is already being challenged in Sangamon County court. The Digital Chamber filed a lawsuit against Illinois Department of Revenue Director David Harris and Attorney General Kwame Raoul, alleging the tax violates both the U.S. Constitution and the Illinois Constitution.
Legal experts have also raised concerns about how the tax is structured. Olta Andoni, a partner at Bellementis Law Firm, said the law may present due process issues. “The tax is void for vagueness, relies on undefined terms, and includes provisions that could carry felony penalties,” Andoni said. “It also rests on what may be an unconstitutional presumption.”
Additional litigation is already underway. In June, Kalshi filed suit challenging Illinois’ new tax on prediction markets.
The state’s broader revenue package also includes a new tax on sports wagering, which could face scrutiny as legal challenges to Illinois’ digital tax framework continue to unfold.
Governor Pritzker Launches Illinois Opportunity Zones 2.0 to Drive Investment in Communities Statewide
Governor JB Pritzker and the Illinois Department of Commerce and Economic Opportunity (DCEO) launched Illinois’ Opportunity Zones 2.0 – a statewide initiative to identify and nominate the next group of federally designated Opportunity Zones that will help attract private investment to communities across Illinois. When a low-income community is designated as a Qualified Opportunity Zone through the federal program, it encourages private investment that promotes job creation and economic development in these areas.
“Opportunity Zones are a powerful and effective tool for driving investment in communities that are too often overlooked – and turning that investment into quality jobs and real opportunity,” said Governor JB Pritzker. “With the launch of Opportunity Zones 2.0, we’re modernizing the program to unlock more investment and ensure every Illinois community – especially rural communities – are benefitting from new growth and opportunities.”
“As the Chairperson for the Governor’s Rural Affairs Council, I’ve seen firsthand the widespread impact of these investments. These new incentives for rural areas will help not only draw business to new areas, but will help entire communities thrive,” said Lieutenant Governor Juliana Stratton. “These Opportunity Zones will help drive investment across the state—making Illinois the best place to live and work, no matter your zip code.”
The modernized Opportunity Zones 2.0 program helps ensure that new investments generate economic benefits and unlock opportunities for communities across Illinois. Updates to the program include new reporting requirements and additional incentives for qualifying Rural Opportunity Zones.
“By pairing a data-driven process with strong local engagement, we’re positioning Illinois to support business growth, create jobs, and strengthen regional economies across the state,” said DCEO Director Kristin Richards. “This next generation of Opportunity Zones will help ensure investment aligns with community priorities and advances our broader economic growth plan.”
“Opportunity Zones are an important tool for attracting private investment and creating jobs in communities across Illinois,” said Illinois Economic Development Corporation President and CEO Christy George. “With Opportunity Zones 2.0, Team Illinois can build on our state’s strengths to attract new investment, support business growth, and create lasting economic momentum in every region of Illinois.”
Following federal legislation that permanently reauthorized and modernized the Opportunity Zone program, Governor Pritzker is eligible to nominate a new set of qualifying census tracts for designation beginning in 2027. To identify the tracts best positioned to benefit from Opportunity Zone 2.0 status, DCEO has engaged local governments, economic development organizations, community leaders, developers, investors and residents. This data-driven, locally informed process enables the federal tax incentive to most effectively support Illinois’ long-term economic growth.
“Opportunity zones are an important tool in Illinois’ economic toolbox to help unlock private capital and encourage long-term growth in economically distressed areas,” said Mark Denzler, president & CEO of the Illinois Manufacturers’ Association. “The IMA worked collaboratively with the Governor’s Office and Department of Commerce and Economic Opportunity on site designation, and we’ll continue engaging to make sure Illinois manufacturers are leveraging this important program.”
Illinois’ Opportunity Zones 2.0 framework builds on lessons learned from the first round of designations by emphasizing economic need, market readiness, community priorities and alignment with broader state economic development strategies. The comprehensive evaluation framework considers factors including investment potential, regional balance, and coordination with existing stackable programs, to maximize the impact of future Opportunity Zone designations.
“On behalf of the Chicagoland Opportunity Zones Consortium, we appreciated the opportunity to participate in the thoughtful and informative OZ designation process and are excited to continue working with the State of Illinois to best leverage Opportunity Zones post-designation to support impactful implementation,” said Robin Schabes, Director, Chicagoland Opportunity Zones Consortium.
The State will submit 238 qualifying census tracts to the U.S. Department of the Treasury by the end of September following the completion of the statewide evaluation and engagement process. For more information on Illinois Opportunity Zones, visit the DCEO website.
Governor Announces $1 Billion to Expand High-Speed Internet Across Illinois
Governor JB Pritzker and the Illinois Department of Commerce and Economic Opportunity (DCEO) announced the State of Illinois has been approved to receive $1.04 billion in funding through the Broadband Equity, Access, and Deployment (BEAD) Program to support high-speed internet access statewide. The funding will connect approximately 350,000 residents through homes, businesses, and community institutions across Illinois by 2031. Between private investment, prior public funding, and new BEAD funding, the total broadband investment will exceed $2 billion.
“Thanks to our hard work to secure BEAD funding that had been held hostage by the Trump administration, communities all across Illinois will finally be able to access the high-quality internet they need to thrive in the digital age,” said Governor JB Pritzker. “From telehealth to online education to career opportunities, this announcement will open doors of opportunity for families, schools, farmers, students, and small businesses all over the state.”
“In 2026, Illinoisans rely on high-speed internet for telehealth, virtual learning, staying connected to loved ones, and job opportunities, but for many families, broadband access is unaffordable,” said Senator Durbin. “Today’s announcement, that Illinois’ BEAD Program will receive $1 billion in federal funding, is a historic investment in closing the digital divide, putting internet access within reach for thousands of Illinoisans.”
“Access to reliable broadband is not only critical to Illinois’ economic development, but also essential to tackling the digital divide across the state,” said DCEO Director Kristin Richards. “This funding will support the continued efforts of Connect Illinois to ensure all Illinoisans have the digital access needed to actively participate and thrive in the state’s modern economy.”
The new funding will build on the success of Connect Illinois, the State’s broadband expansion initiative to deliver high-speed internet to thousands of homes across the state. Across the first three funding rounds, the program generated nearly $614 million in combined public and private investments, supporting projects led by 27 internet service providers and local governments to extend access to more than 44,000 households, businesses and community institutions. To date, over 20,610 households have already been connected, with thousands more slated to be set up in the coming months.
“Partnering with the Illinois Office of Broadband through its Connect Illinois grant program to build fiber broadband to the last rural mile will enable infrastructure that will power our rural economies for decades to come. Shelby Electric Cooperative had deployed fiber in downstate Illinois on its strategic roadmap, but without the essential grants in the capital mix, it would not have been possible. Homes, farms, schools, small businesses, and our community anchor institutions, as well as the Cooperative and its members, stand to benefit greatly from this partnership,” said Josh Shallenberger, President/CEO, Shelby Electric Cooperative and Broadband Advisory Council Member.
Governor Pritzker and the Illinois General Assembly launched the state’s push toward universal broadband access in 2019, investing $420 million through the Rebuild Illinois capital plan and establishing the Illinois Office of Broadband (IOB), housed within DCEO. Connect Illinois is administered by the IOB with support from the Illinois Broadband Lab, part of the University of Illinois System. The initiative is an important component of both Rebuild Illinois and Illinois’ Economic Growth Plan, with the goal of achieving universal coverage statewide. Grantees funded through the program include a mix of local governments and internet service providers from across Illinois delivering high-speed internet to urban, suburban, and rural areas alike.
Storm Relief
Individuals and businesses that were impacted in the region from the July 27 and August 9-11 storms can find resources and disaster assistance, and tax relief. A disaster declaration has been approved for Will County for damage resulting from the July 27 and Aug. 9-11 storms. Residents in surrounding counties, including Kankakee, Cook, Grundy and Kane, are also eligible.
This declaration unlocks various resources for residents and businesses in our community:
Assistance through the U.S. Small Business Administration
• Business Physical Disaster Loans: Loans to businesses to repair or replace disaster- damaged property owned by the business, including real estate, inventory, supplies, machinery and equipment. These applications must be received by the SBA no later than Oct. 19, 2026.
• Economic Injury Disaster Loans: Working capital loans to help small businesses, small agricultural cooperatives and most private nonprofits meet their ordinary and necessary financial obligations that cannot be met as a result of the disaster. These applications must be submitted to the SBA no later than May 18, 2027.
• Home Disaster Loans: Loans to homeowners or renters to repair or replace disaster-damaged real estate and personal property, including automobiles. These loan applications are due Oct. 19, 2026.
Residents can apply for assistance in person at the outreach center listed below, online at sba.gov/disaster or by calling 800-659-2955.
Find in-person assistance
One Disaster Loan Outreach Center is open now through Sept. 8 in Will County:
• Village of University Park Town Center: 90 Town Center Dr. Open Monday through Friday from 9 a.m. to 6 p.m. and Saturday from 9 a.m. to 1 p.m.
Walk-ins are welcome, or appointments can be scheduled at appointment.sba.gov.
Severe weather tax relief through the Illinois Department of Revenue
Disaster tax relief may also apply to residents and businesses in our area who were impacted by the severe storms. Taxpayers can send a brief written explanation to the Illinois Department of Revenue requesting a waiver of tax penalties and interest, which can be submitted electronically to Rev.DisasterRelief@Illinois.gov. Find more information here.
Property damage
Taxpayers who experienced property damage should contact their county supervisor of assessments if they wish to apply for a reassessment:
• Cook County
• Will County
• Kankakee County
• Kendall County
Damage Survey Reminder:
The Will County Storm Damage Survey will close Saturday, August 22 at 11:59 PM. This survey is for residents or businesses impacted by the August 9-11 storms, please complete the survey before it closes: www.willcountyema.org/storm
**Attached to this message is more information from the SBA
Small Business Digital Ready Grant Opportunity
A $10,000 Grant opportunity and free courses from Verizon Small Business Digital Ready has opened. The Verizon’s Small Business Digital Ready program offers free courses, mentorship, networking opportunities and grants designed to support your small business goals. Strengthen your skills with courses on key topics such as money management, marketing, website design, branding and more to take your business to the next level.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct