Skip to main content

Turning State Investments into Local Opportunities: What the State Budget Means for McHenry County

Written on .

Economic development is driven not only by local leadership and private investment but also by strategic support from state-level initiatives. Recent state budget allocations include significant new funding streams designed to accelerate site development, strengthen manufacturing capabilities, and build a skilled workforce across Illinois. 

For McHenry County, these initiatives represent a timely chance to improve our economic competitiveness, attract new businesses, and support local employers as they grow and modernize.  

Last month, I had the opportunity to attend the 2025 Illinois Economic Development Summit in Peoria. My peers and I attended presentations from Department of Commerce and Economic Opportunity (DCEO) Director Kristen Richards, President of Intersect IL Christy George and a host of knowledgeable leaders in public and private sector economic development. The key takeaways were the strategic opportunities for local economic development in the recently passed FY 2026 Illinois budget. 

Key Funding Highlights 

  • $500 million for Site Readiness: A combination of $300 million for State-Owned sites and $200 million for privately or local public-owned sites to prepare them for business use.  
  • Advancing Innovative Manufacturing (AIM) Tax Credit: Supports manufacturers investing at least $10 million in upgrades or expansion, offering credits worth 3–7% of committed investment. 
  • Expanded EDGE and REV incentives: Broadened eligibility for projects in electric vehicle supply chains, renewable components, and hybrid manufacturing. 
  • $75 million for Prime Sites Capital Grants: Directly support large-scale development and recruitment of major employers. 

Why This Matters for McHenry County 

Accelerating Site Readiness 

McHenry County was one of the few Illinois counties awarded both Site Readiness grants; Planning and Capital, in 2024. Additional site readiness funding will help local governments, and their partners offset costs to prepare land and infrastructure to meet the needs of expanding or relocating businesses more quickly. By investing in utilities, roads, and environmental remediation, we can ensure that local sites are ready for immediate development. In 2026, McHenry County municipalities can partner with the EDC and DCEO to apply for funds that will result in infrastructure upgrades and environmental improvements, attracting private investment and job creators. 

Supporting Our Core Businesses 

Employing over 15% of our workforce, manufacturing is a core strength of McHenry County’s economy. The AIM tax credit will create new opportunities for local manufacturers to modernize equipment, adopt advanced technologies, and increase operational efficiency. Paired with expanded incentives like EDGE, McHenry County Enterprise Zone, and Prime Sites Capital Grants, these tools can help maintain our county’s strong manufacturing base while opening doors to new markets. A mid-sized manufacturer looking to install robotics and automated equipment might offset costs through the AIM tax credit and tap into workforce training funds through the McHenry County Workforce Network or McHenry County College to upskill existing employees. Alternatively, a local supplier considering expansion into electric vehicle components could access newly expanded REV incentives, positioning McHenry County as a competitive player in this fast-growing sector. 

Looking Ahead 

Local business owners, municipal leaders, and community partners all play a vital role in turning these state-level investments into real local impact. Now is the time to review capital improvement and expansion plans, assess redevelopment opportunities, and identify infrastructure gaps that could benefit from state support. By engaging early with the MCEDC and exploring available grants, tax credits, and site readiness resources, stakeholders can position their projects for success. Collaboration and proactive planning will help ensure that McHenry County is ready to attract new employees, further support local growth, and continue building a strong economic foundation for the future. 

By working together and making thoughtful use of these resources, we can position our communities for long-term growth and greater economic resilience.  

 

If everyone is moving forward together, then success takes care of itself. 

– Henry Ford 

 

Mark PiekosMark Piekos, Executive Director of MCEDC