Government Incentives

To encourage consumers to purchase electric vehicles (EVs), the federal government and the State of Illinois have put in place a number of programs to stimulate growth of the EV industry and make clean driving more affordable. Midwestern states outside of Illinois do not provide state-funded EV incentive programs, but several utility companies in other states do offer incentives.

For more information about federal and state rebates regarding electric vehicles, visit the U.S. Department of Energy’s Alternative Fuel Data Center website.

Type Incentive Benefit Application Expiration
Federal Plug-In Electric Drive Vehicle Tax Credit $2,500 to $7,500 tax credit for purchasing an EV, depending on vehicle’s battery capacity and weight IRS website Phase-out will begin after each manufacturer sells 200,000 qualified cars
IL Alternative Fuel Vehicle (AFV) and Alternative Fuel Rebates 80% rebate up to $4,000 for purchasing an electric vehicle Illinois Green Fleets Dependent on funding availability in the Alternate Fuels Fund
IL Electric Vehicle Supply Equipment (30EVSE) Rebates Covers 50% cost of installation and equipment for a Level 2 charger station, up to $3,000 per non-networked station Electric Vehicles in Illinois New enrollment period anticipated Fall 2014.
IL Electric Vehicle (EV) Registration Fee Reduction Annual registration fee discounted to $18 for EVs, compared to $101 for a conventional car None announced

 

Qualified Plug-In Electric Drive Motor Vehicle Tax Credit

The American Recovery and Reinvestment Act provides a tax credit for purchasers of new electric vehicles that weigh less than 14,000 pounds and have at least 4 kilowatt hours of capacity. The tax credit is between $2,500 to $7,500, depending upon the vehicle’s battery capacity and weight. See the U.S. Department of Energy’s fuel economy website to determine which models qualify for the full tax credit. The credit phases out after the manufacturer has sold 200,000 models of an electric vehicle, beginning in 2009. Vehicles purchased during the years 2009 to 2013 are eligible.

To apply for the tax credit, see the Plug-In Electric Vehicle Credit website and IRS Form 8936.

 

Alternative Fuel Vehicle (AFV) and Alternative Fuel Rebates

As part of the Illinois Green Fleets program, Illinois residents are also eligible for a rebate of 80% of the incremental cost of purchasing an electric vehicle, up to $4,000. This rebate can be used in addition to the Qualified Plug-In Electric Drive Motor Vehicle Tax Credit. Only vehicles bought from an Illinois vendor are eligible.

See the Illinois Green Fleets website to apply, or contact Darwin Burkhart, manager of the Illinois EPA Clean Air programs at darwin.burkhart@illinois.gov.

 

Electric Vehicle Supply Equipment (30EVSE) Rebates

The Illinois Department of Commerce and Economic Opportunity offers a rebate of up to 50% of the cost of installation and equipment costs for Level 2 charging stations. Illinois residents who have installed Level 2 home charging equipment are eligible. The rebate covers up to $3,750 per networked single station, or $3,000 per non-networked single station.

For more information, see the Electric Vehicles in Illinois website.

 

Electric Vehicle (EV) Registration Fee Reduction

Illinois electric vehicle owners are guaranteed a discounted rate on annual vehicle registration, not to exceed $18 a year, or $35 for two years. This savings is compared to $99 registration fees for conventional vehicles.

For more information, contact the DMV.

 

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