Pritzker pushes back on Megaproject tax concerns
[March 07, 2026]
By Sean Reed | The Center Square contributor
(The Center Square) – Illinois Gov. J.B. Pritzker pushed back on the
idea that proposed legislation, dubbed the “Megaprojects Bill,” would
cause a sharp increase in property taxes for residents Thursday.
The bill has received heightened attention in recent weeks, primarily
due to tax incentives aimed at keeping the Chicago Bears in the state,
though the scope of the bill is broader than a single stadium project.
Concerns surrounding an increase in property taxes for residents in tax
districts that take in such projects arose after a committee hearing
last month.
Pritzker pushed back on those concerns, stating that the bill isn’t
intended to cause an increased burden on taxpayers, but rather to
incentivize large developments.
“It is not intended to raise anybody's property taxes. The idea is … you
have a property anywhere in the state of Illinois that isn't being used
now, therefore we're not seeing the property taxes coming from it that
we should if you had development on a property,” Pritzker said.
Among tax incentives in the bill, property owners who develop
megaprojects would pay a negotiated fixed tax rate, based on the value
of the undeveloped property, rather than a rate that accounts for the
value of development.
It would also allow construction materials used in the development of
the property to be bought tax free, with both incentives lasting a
maximum of 10 years.
Concerns stem from a discrepancy in the language of the bill, allowing
municipalities to count the value of a megaproject toward its tax base,
despite not receiving corresponding property tax payment to account for
it.
In a Feb. 24 news conference, Illinois state Rep. Dan Ugaste, R-Geneva
spoke on the tax implications. While not opposed to developers, such as
the Bears, negotiating a deal with municipalities to pay a fair tax
rate, he said negotiations should not increase taxes for residents.
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Illinois Gov. J.B. Pritzker speaks at the Peace Officers Memorial
Service. BlueRoomStream / Screenshot
“Can't push anything off on anyone else. Can't make them eat the other's
share, or increase their taxes for no reason whatsoever,” Ugaste said.
“But if the bears want to go work out a deal and the local government
officials are negotiating on behalf of their constituents there, and
they cut a deal? Have at it.”
Along similar lines, Pritzker noted a goal of the bill is to grow the
amount of tax brought in by municipalities in the long term.
“You want to make sure that you're bringing development and that there
is an end game for the local governments and schools and parks and
libraries to be able to get the property taxes that would normally come
from the development of a property that is as yet undeveloped,” Pritzker
said.
Aside from the tax discrepancy, the bill also prohibits projects from
including any residential construction in order to be eligible for the
tax incentives, which could be at odds with both the Chicago Bears’
possible Arlington Heights stadium plans and the Governor’s ‘Building Up
Illinois Developments’ plan within the proposed FY27 budget.
The bill was assigned to the House Tax Credit and Incentives
Subcommittee late last month for further discussion, as negotiations
surrounding the Chicago Bears’ next home continue. |
