Illinois 2024 EV Tax Credits Guide [+ Calculate Your Savings]
Steve Birkett is an electric vehicle advocate based in Greater Boston, Massachusetts. He is a content creator and marketing professional who contributes written and recorded pieces to a wide range of media outlets. His analysis has been featured in Find The Best Car Price, WWLP TV, and Torque News, among others. He has also had video content featured on Inside EVs. Birkett was an EV Guide for Plug in America events in Massachusetts (Drive Electric Cambridge and Drive Electric Lowell) and Ohio (Earth Day 2019 at Cleveland Zoo). He participates in quarterly advisory panel meetings for EVolve New York (a state-level charging initiative) and has contributed to focus groups for prominent U.S. charging networks.
Birkett is a father-of-two who loves nothing more than packing up the family and hitting the road in their latest electric car, which is currently a 2022 Hyundai IONIQ 5. With multiple Chevy Bolts in his past, as well as a Chevy Volt and Tesla Model 3 LR in the extended family, plus various EV rentals when he ventures back home to his native United Kingdom, Birkett has more than 100,000 all-electric miles under his belt and is always ready to try out a new electric vehicle.
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There’s no denying that electric vehicles (EVs) can start out as an expensive purchase. However, there are federal and state incentives like rebates and tax credits in place to make EVs more financially appealing.
But what state EV incentive programs are in place in Illinois?
Let’s see what current incentives are available in your area and whether or not you qualify for them.
Last Updated: January 2024
Table of Contents
Illinois EV Savings Calculator
What EV Incentives Are Available in Illinois?
Illinois has the following incentives in place for electric vehicles and associated purchases for charging:
- $4,000 rebate for an all-electric vehicle
- $1,500 rebate for the purchase of an all-electric motorcycle
Let’s take a look at each of these in more detail.
Incentives for Purchasing an EV in Illinois
Illinois offers a rebate for up to $4,000 off the purchase of a new electric vehicle.
To qualify, EV buyers must meet the following purchase criteria:
- The purchaser must reside in Illinois at the time of vehicle purchase and at the time the rebate is issued.
- The vehicle must be purchased from a dealer located in Illinois and 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.
- Only individuals can receive a rebate and can only receive one rebate. Businesses, government units, organizations, and other entities that are not individuals will be denied a rebate. Applicants must ensure that all documentation is in the name of the individual applying for the rebate and do not include or list an entity (i.e., LLC, Inc., Corp.) as the purchaser or co-purchaser of the vehicle or the vehicle registrant.
- 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.
- Along with the application form, an applicant must submit FOUR types of documentation as listed in Section 4 on the second page of the form: Copy of the bill of sale, purchase invoice, or purchase agreement from an Illinois dealership;
- Documentation of proof of purchase, such as a copy of a canceled check, an invoice or bill showing that the applicable amount has been paid or that no remaining balance exists, or loan documents (depending on the type of sales document used by the dealership, the proof of purchase could be shown on the invoice or agreement, such as a $0 balance owed to the dealer; separate proof of purchase documentation will be needed if the invoice shows that an amount is owed to the dealer and the payment documentation amount(s) will need to match the "owed amount" on the invoice);
- Copy of the Illinois vehicle registration or temporary permit provided by the dealership at the time of sale/delivery.
- IRS W-9 or W-8 form (substitutions for these forms using other government documents or financial statements are not acceptable).
Additional incentives may be available to low-income applicants. Visit this state information site to see if you meet the requirements.
Other EV Incentives Offered in Illinois
Illinois offers the following incentives for electric vehicle charging, maintenance, or related benefits:
- The utility Ameren Illinois offers a preferential time-of-use (TOU) rate to residential customers that own or lease an EV.
- IEPA also offers rebates of $1,500 to Illinois residents for the purchase of a new electric motorcycle.
- Climate and Equitable Jobs Act offers a rebate of up to 80% to eligible public and private entities for the installation and maintenance of Level 2 and direct current fast charging (DCFC) stations.
Now that you know what electric vehicle incentives are available in Illinois, what else do you need to know about making the switch to all-electric transportation?
Read our guidance on how to prepare for an EV to make sure the models you’re considering will meet your real-world driving needs!
Frequently Asked Questions
Are there incentives for purchasing an electric vehicle in Illinois?
Yes, there are state-level incentives in place when you purchase an EV in the state of Illinois. New buyers can get up to $4,000 off the purchase of a new electric vehicle and may also qualify for federal EV incentives. Also, check out our picks for the best deals on EVs.
Are there additional fees for purchasing an electric vehicle in Illinois?
Yes, there are additional fees to pay when you purchase an EV in the state of Illinois. A $100 registration fee is charged to make up for the tax revenue lost now that you will no longer buy gasoline or diesel.
Does sales tax apply when I buy an EV in Illinois?
Sales tax is applied to electric vehicle purchases in Illinois at the same rate as traditional combustion vehicles. Visit our resource page to find the vehicle sales tax in Illinois.