Economy

The dollar gross state product for Illinois was estimated to be US$909 billion in 2019. The state's 2019 per capita gross state product was estimated to be around $72,000.

As of February 2019, the unemployment rate in Illinois reached 4.2%.

Illinois's minimum wage will rise to $15 per hour by 2025, making it one of the highest in the nation.

Agriculture

Illinois's major agricultural outputs are corn, soybeans, hogs, cattle, dairy products, and wheat. In most years, Illinois is either the first or second state for the highest production of soybeans, with a harvest of 427.7 million bushels (11.64 million metric tons) in 2008, after Iowa's production of 444.82 million bushels (12.11 million metric tons). Illinois ranks second in U.S. corn production with more than 1.5 billion bushels produced annually. With a production capacity of 1.5 billion gallons per year, Illinois is a top producer of ethanol, ranking third in the United States in 2011. Illinois is a leader in food manufacturing and meat processing. Although Chicago may no longer be "Hog Butcher for the World", the Chicago area remains a global center for food manufacture and meat processing, with many plants, processing houses, and distribution facilities concentrated in the area of the former Union Stock Yards. Illinois also produces wine, and the state is home to two American viticultural areas. In the area of The Meeting of the Great Rivers Scenic Byway, peaches and apples are grown. The German immigrants from agricultural backgrounds who settled in Illinois in the mid- to late 19th century are in part responsible for the profusion of fruit orchards in that area of Illinois. Illinois's universities are actively researching alternative agricultural products as alternative crops.

Manufacturing

Illinois is one of the nation's manufacturing leaders, boasting annual value added productivity by manufacturing of over $107 billion in 2006. As of 2011update, Illinois is ranked as the 4th-most productive manufacturing state in the country, behind California, Texas, and Ohio. About three-quarters of the state's manufacturers are located in the Northeastern Opportunity Return Region, with 38 percent of Illinois's approximately 18,900 manufacturing plants located in Cook County. As of 2006, the leading manufacturing industries in Illinois, based upon value-added, were chemical manufacturing ($18.3 billion), machinery manufacturing ($13.4 billion), food manufacturing ($12.9 billion), fabricated metal products ($11.5 billion), transportation equipment ($7.4 billion), plastics and rubber products ($7.0 billion), and computer and electronic products ($6.1 billion).

Services

By the early 2000s, Illinois's economy had moved toward a dependence on high-value-added services, such as financial trading, higher education, law, logistics, and medicine. In some cases, these services clustered around institutions that hearkened back to Illinois's earlier economies. For example, the Chicago Mercantile Exchange, a trading exchange for global derivatives, had begun its life as an agricultural futures market. Other important non-manufacturing industries include publishing, tourism, and energy production and distribution.

Investments

Venture capitalists funded a total of approximately $62 billion in the U.S. economy in 2016. Of this amount, Illinois-based companies received approximately $1.1 billion. Similarly, in FY 2016, the federal government spent $461 billion on contracts in the U.S. Of this amount, Illinois-based companies received approximately $8.7 billion.

Energy

Illinois is a net importer of fuels for energy, despite large coal resources and some minor oil production. Illinois exports electricity, ranking fifth among states in electricity production and seventh in electricity consumption.

Coal

The coal industry of Illinois has its origins in the middle 19th century, when entrepreneurs such as Jacob Loose discovered coal in locations such as Sangamon County. Jacob Bunn contributed to the development of the Illinois coal industry, and was a founder and owner of the Western Coal & Mining Company of Illinois. About 68% of Illinois has coal-bearing strata of the Pennsylvanian geologic period. According to the Illinois State Geological Survey, 211 billion tons of bituminous coal are estimated to lie under the surface, having a total heating value greater than the estimated oil deposits in the Arabian Peninsula. However, this coal has a high sulfur content, which causes acid rain, unless special equipment is used to reduce sulfur dioxide emissions. Many Illinois power plants are not equipped to burn high-sulfur coal. In 1999, Illinois produced 40.4 million tons of coal, but only 17 million tons (42%) of Illinois coal was consumed in Illinois. Most of the coal produced in Illinois is exported to other states and countries. In 2008, Illinois exported three million tons of coal, and was projected to export nine million in 2011, as demand for energy grows in places such as China, India, and elsewhere in Asia and Europe. As of 2010update, Illinois was ranked third in recoverable coal reserves at producing mines in the nation. Most of the coal produced in Illinois is exported to other states, while much of the coal burned for power in Illinois (21 million tons in 1998) is mined in the Powder River Basin of Wyoming.

Mattoon was recently chosen as the site for the Department of Energy's FutureGen project, a 275-megawatt experimental zero emission coal-burning power plant that the DOE just gave a second round of funding. In 2010, after a number of setbacks, the city of Mattoon backed out of the project.

Petroleum

Illinois is a leading refiner of petroleum in the American Midwest, with a combined crude oil distillation capacity of nearly 900,000 barrels per day (140,000 m3/d). However, Illinois has very limited crude oil proved reserves that account for less than 1% of the U.S. total reserves. Residential heating is 81% natural gas compared to less than 1% heating oil. Illinois is ranked 14th in oil production among states, with a daily output of approximately 28,000 barrels (4,500 m3) in 2005.

Nuclear power

Nuclear power arguably began in Illinois with the Chicago Pile-1, the world's first artificial self-sustaining nuclear chain reaction in the world's first nuclear reactor, built on the University of Chicago campus. There are six operating nuclear power plants in Illinois: Braidwood, Byron, Clinton, Dresden, LaSalle, and Quad Cities. With the exception of the single-unit Clinton plant, each of these facilities has two reactors. Three reactors have been permanently shut down and are in various stages of decommissioning: Dresden-1 and Zion-1 and 2. Illinois ranked first in the nation in 2010 in both nuclear capacity and nuclear generation. Generation from its nuclear power plants accounted for 12 percent of the nation's total. In 2007, 48% of Illinois's electricity was generated using nuclear power. The Morris Operation is the only de facto high-level radioactive waste storage site in the United States.

Wind power

Illinois has seen growing interest in the use of wind power for electrical generation. Most of Illinois was rated in 2009 as "marginal or fair" for wind energy production by the U.S. Department of Energy, with some western sections rated "good" and parts of the south rated "poor". These ratings are for wind turbines with 50-meter (160 ft) hub heights; newer wind turbines are taller, enabling them to reach stronger winds farther from the ground. As a result, more areas of Illinois have become prospective wind farm sites. As of September 2009, Illinois had 1116.06 MW of installed wind power nameplate capacity with another 741.9 MW under construction. Illinois ranked ninth among U.S. states in installed wind power capacity, and sixteenth by potential capacity. Large wind farms in Illinois include Twin Groves, Rail Splitter, EcoGrove, and Mendota Hills.

As of 2007, wind energy represented only 1.7% of Illinois's energy production, and it was estimated that wind power could provide 5–10% of the state's energy needs. Also, the Illinois General Assembly mandated in 2007 that by 2025, 25% of all electricity generated in Illinois is to come from renewable resources.

Biofuels

Illinois is ranked second in corn production among U.S. states, and Illinois corn is used to produce 40% of the ethanol consumed in the United States. The Archer Daniels Midland corporation in Decatur, Illinois, is the world's leading producer of ethanol from corn.

The National Corn-to-Ethanol Research Center (NCERC), the world's only facility dedicated to researching the ways and means of converting corn (maize) to ethanol is located on the campus of Southern Illinois University Edwardsville.

University of Illinois at Urbana–Champaign is one of the partners in the Energy Biosciences Institute (EBI), a $500 million biofuels research project funded by petroleum giant BP.

Taxes

Tax is collected by the Illinois Department of Revenue. State income tax is calculated by multiplying net income by a flat rate. In 1990, that rate was set at 3%, but in 2010, the General Assembly voted for a temporary increase in the rate to 5%; the new rate went into effect on January 1, 2011; the personal income rate partially sunset on January 1, 2015, to 3.75%, while the corporate income tax fell to 5.25%. Illinois failed to pass a budget from 2015 to 2017, after the 736-day budget impasse, a budget was passed in Illinois after lawmakers overturned Governor Bruce Rauner's veto; this budget raised the personal income rate to 4.95% and the corporate rate to 7%. There are two rates for state sales tax: 6.25% for general merchandise and 1% for qualifying food, drugs, and medical appliances. The property tax is a major source of tax revenue for local government taxing districts. The property tax is a local—not state—tax, imposed by local government taxing districts, which include counties, townships, municipalities, school districts, and special taxation districts. The property tax in Illinois is imposed only on real property.

On May 1, 2019, the Illinois Senate voted to approve a constitutional amendment that would have stricken language from the Illinois Constitution requiring a flat state income tax, in a 73–44 vote. If approved, the amendment would have allowed the state legislature to impose a graduated income tax based on annual income. The governor, J.B. Pritzker, approved the bill on May 27, 2019. It was scheduled for a 2020 general election ballot vote and required 60 percent voter approval to effectively amend the state constitution. The amendment was not approved by Illinoisans, with 55.1% of voters voting "No" on approval and 44.9% voting "Yes."

As of 2017 Chicago had the highest state and local sales tax rate for a U.S. city with a populations above 200,000, at 10.250%. The state of Illinois has the second highest rate of real estate tax: 2.31%, which is second only to New Jersey at 2.44%.

Toll roads are a de facto user tax on the citizens and visitors to the state of Illinois. Illinois ranks seventh out of the 11 states with the most miles of toll roads, at 282.1 miles. Chicago ranks fourth in most expensive toll roads in America by the mile, with the Chicago Skyway charging 51.2 cents per mile. Illinois also has the 11th highest gasoline tax by state, at 37.5 cents per gallon.