purchasing

Illinois Resident Bidder Preference

Revised May 29, 2026

Illinois Compiled Statutes

Chapter 30. Finance

Purchases and Contracts

Act 520 Public Purchases in Other States Act.

(30 ILCS 520/2) Purchase for public institutions of commodities in other states; preferences

The board of trustees or other officer or officers in charge of every institution in the State of Illinois, which is supported in whole or in part by public funds, who are authorized or required to purchase commodities for use in the operation of any such institution, shall, in purchasing such commodities from vendors in any other state, give preference to vendors in those states whose preference laws do not prohibit the purchase by the public institutions of such states of commodities grown or produced in Illinois.

Illinois Compiled Statutes

Chapter 30. Finance

Purchases and Contracts

Act 500 Illinois Procurement Code.

Article 45 Preferences

Sec. 45-10. Resident bidders and offerors.

(a) Amount of preference. When a contract is to be awarded to the lowest responsible bidder or offeror, a resident bidder or offeror shall be allowed a preference as against a non-resident bidder or offeror from any state that gives or requires a preference to bidders or offerors from that state. The preference shall be equal to the preference given or required by the state of the non-resident bidder or offeror. Further, if only non-resident bidders or offerors are bidding, the purchasing agency is within its right to specify that Illinois labor and manufacturing locations be used as a part of the manufacturing process, if applicable. This specification may be negotiated as part of the solicitation process.

(b) Residency. A resident bidder or offeror is a person authorized to transact business in this State and having a bona fide establishment for transacting business within this State where it was actually transacting business on the date when any bid for a public contract is first advertised or announced. A resident bidder or offeror includes a foreign corporation duly authorized to transact business in this State that has a bona fide establishment for transacting business within this State where it was actually transacting business on the date when any bid for a public contract is first advertised or announced.

(c) Federal funds. This Section does not apply to any contract for any project as to which federal funds are available for expenditure when its provisions may be in conflict with federal law or federal regulation.

Sec. 45-50. Illinois agricultural products.

In awarding contracts requiring the procurement of agricultural products, preference may be given to an otherwise qualified bidder or offeror who will fulfill the contract through the use of agricultural products grown in Illinois.

Sec. 45-55. Corn-based plastics.

In awarding contracts requiring the procurement of plastic products, preference may be given to an otherwise qualified bidder or offeror who will fulfill the contract through the use of plastic products made from Illinois corn by-products.

Sec. 45-60. Vehicles powered by agricultural commodity-based fuel.

In awarding contracts requiring the procurement of vehicles, preference may be given to an otherwise qualified bidder or offeror who will fulfill the contract through the use of vehicles powered by ethanol produced from Illinois corn or biodiesel fuels produced from Illinois soybeans.

Sec. 45-105. Bid preference for Illinois businesses.

(b) It is hereby declared to be the public policy of the State of Illinois to promote the economy of Illinois through the use of Illinois businesses for all State construction contracts.

(c) A construction agency, as defined in Section 1-15.25, procuring construction services shall make reasonable efforts to contract with Illinois businesses.

(d) Each construction agency shall submit a report to the Governor and the General Assembly by December 1 of each year that identifies the Illinois businesses procured by the construction agency, the primary location of the construction project, the percentage of the construction agency's utilization of Illinois businesses on the project as a whole, and the actions that the construction agency has undertaken to increase the use of Illinois businesses.

(e) In procuring construction services for projects with a total value that exceeds the small purchase maximum established by Section 20-20 of this Code, construction agencies shall provide a bid preference to a responsive and responsible bidder that is an Illinois business as defined in this Section. The construction agency shall allocate to the lowest bid by an Illinois business that is responsible and responsive a bid preference of 4% of the contract base bid. This subsection applies only to projects where a business that is not an Illinois business submits a bid.

(f) This Section does not apply to any contract for any project for which federal funds are available for expenditure when its provisions may be in conflict with federal law or federal regulation.

(g) As used in this Section, "Illinois business" means a contractor that is, for at least one year prior, operating and headquartered in Illinois, subject to applicable State taxes, and providing, at the time that an invitation for a bid or notice of contract opportunity is first advertised, construction services. "Illinois business" includes a foreign corporation duly authorized to transact business in this State that has a bona fide establishment for transacting business within this State where it is operating, headquartered, and performing construction or construction-related professional services at least one year before an invitation for a bid or notice of contract opportunity is first advertised. "Illinois business" does not include any subcontractors or businesses headquartered outside of the State that have an affiliated entity operating in the State.