Vertical Construction Funding

New vertical construction funding is generated from a gaming expansion, new taxes on cigarettes and parking, and new sales tax provisions on vehicle purchases and out-of-state retailers.


Rebuild Illinois Provisions to Generate Vertical Construction Funding

Revenues from new taxes and a statewide gambling expansion are expected to generate approximately $810 million per year for vertical construction projects, as summarized in the table below. The most significant is the gambling expansion – encompassing new casinos and riverboats, gambling at racetracks, video gaming, and the newly added sports wagering – which is expected to generate approximately $350 million per year. It should be noted that any initial license or one-time fees (reconciliation payments and gaming position fees) are not included in this annual revenue estimate.

Estimated Annual Revenues & Funding Sources
NOTE: these revenue estimates were calculated by Governor Pritzker’s Office prior to COVID-19; the COVID-19 pandemic is expected to impact gambling revenues as mentioned in this ILEPI report.

Source: Rebuild Illinois Summary (estimated revenues)

The majority of these new revenues will support the Capital Projects Fund and Rebuild Illinois Projects Fund, as summarized in the table above. Both of these funds support capital improvement projects, as further described below.

Capital Projects Fund: created under the 2009 Capital Plan, this fund is used for capital projects and debt service on bonds issued for capital projects; funding is generated by a variety of sources, including video gaming, a portion of the sales tax, certain vehicle registration fees, and sports wagering.

Rebuild Illinois Projects Fund: newly created fund that will be used for grants that support community development, including capital projects; the majority of funding for this fund is generated by license fees on initial licenses issued for newly licensed gaming facilities and wagering platforms (30 ILCS 105/6z-111).