Illinois Electric Vehicle Rebate Program - Effective 7/1/22

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By Porte Brown - July 21, 2022

The Illinois Electric Vehicle (EV) Rebate program was created under the Climate and Equitable Jobs Act (CEJA) in the fall of 2021. Applications for the first funding round are being accepted starting July 1 and must be postmarked on or before September 30, 2022. It’s only a 90-day window so act fast. Only one rebate will be issued to a purchaser in any 10-year period that relate to this program.

Note: This program is for individuals only.

Illinois' Electric Vehicle Rebate Program began July 1, 2022. Illinois residents that purchase a new or used all-electric vehicle from an Illinois licensed dealer will be eligible for a rebate in the amounts set forth below.

  • A $4,000 rebate for the purchase of an all-electric vehicle that is not an electric motorcycle.
  • A $1,500 rebate for the purchase of an all-electric motorcycle.

Purchasers must apply for the rebate during an open rebate cycle and within 90-days of vehicle purchase. Application forms will be available on this web page during open rebate cycles.

Eligibility requirements for an EV rebate in Illinois include, but are not limited to:

  • The purchaser must reside in Illinois at time of vehicle purchase and at the time the rebate is issued.
  • The vehicle must be purchased from a dealer licensed by the Illinois Secretary of State.
  • Rented or leased vehicles do not qualify for the rebate.
  • The vehicle cannot have been the subject of a previous EV rebate under this new program in Illinois.
  • The rebate amount cannot exceed the purchase price of the vehicle.
  • The purchaser must retain ownership of the vehicle for a minimum of 12 consecutive months immediately after the vehicle purchase date.
  • The purchaser must apply for the rebate within 90-days after the vehicle purchase date.
  • Documentation requirements include a copy of purchase invoice, proof of purchase, vehicle registration, and IRS W-9 or W-8 forms.

Documentation requirements will be detailed in the application. EV rebates issued for applications received in a funding cycle are subject to the availability of funds for each cycle.

The Illinois EPA has developed a Frequently Asked Questions document to answer questions about the program.

The following rebate cycle amounts have been set forth in statute as follows:

  • Beginning July 1, 2022, a $4,000 rebate for the purchase of an all-electric vehicle.
  • Beginning July 1, 2026, a $2,000 rebate for the purchase of an all-electric vehicle.
  • Beginning July 1, 2028, a $1,500 rebate for the purchase of an all-electric vehicle.
  • Beginning July 1, 2022, a $1,500 rebate is available for the purchase of an electric motorcycle.

This program is available as long as funds are available. As of July 1, 2022, the Electric Vehicle Rebate Fund has a balance of $17,909,043.

Please Note: This information was originally published on the Illinois Environmental Protection Agency's website.

Federal Tax News for Individuals - July 2022

TAX SPOTLIGHT

Federal Tax News for Individuals: July 2022

The IRS has added more electric vehicles (EVs) to its list of those eligible for a federal tax credit. The tax code provides a credit (of up to $7,500) to purchasers of qualified plug-in electric-drive passenger vehicles and light trucks...

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