Searching for more EV incentives to allow you to bring down the value of your next ride? In the event you are a current resident of the Prairie State, we’ve got excellent news and bad news for you.
The excellent news: Illinois has an EV rebate program!
The bad news: the Illinois Electric Vehicle Rebate Program is currently out of funds and shouldn’t be taking applications.
But that’s not the top of the story. Let’s talk concerning the EV rebate program in Illinois: what it offers, who’s eligible, why this system remains to be relevant when you plan on buying an EV soon, and methods to find an amazing deal on an EV even when you can’t get the Illinois rebate.
Illinois EV Incentives
As we start, we’d prefer to indicate that this text is for informational purposes only. This text shouldn’t be intended to supply tax, legal, financial, or accounting advice; we’re EV experts, not tax professionals or lawyers. Before making any big financial decision, you need to check with your personal financial and legal advisors.
While an Illinois EV tax credit doesn’t exist, per se, the Illinois Environmental Protection Agency (IEPA) does offer a reasonably generous $4,000 rebate for individual consumers who purchase a brand new or used EV. This system specifies that the EV have to be purchased from a licensed dealership based in Illinois. You’ll have to hang on to your electric automotive, truck, or SUV for not less than 12 months to maintain the cash, so rented and leased vehicles usually are not eligible.
Fun fact: unlike the Federal Clean Vehicle Credit, the Illinois Electric Vehicle Rebate Program includes electric motorcycles of their eligibility criteria. Nonetheless, since they have an inclination to cost lower than an electrical automotive or SUV, electric motorcycles are only eligible for a $1,500 rebate. Additionally they must be highway-capable; if it isn’t legal to drive over 45 mph on a highway, it isn’t eligible.
How Do You Qualify for Illinois’ EV Rebate?
Only residents of the State of Illinois are eligible for Illinois’ EV rebate. Moreover, you could have to be a resident each on the time of buying your EV and if you receive the rebate, so you’ll be able to’t buy a qualifying EV and move before you receive the funds.
You may only be accepted to this system once; each individual is just allowed one rebate every ten years. Also business and government agencies—mainly anything apart from a person taxpayer—usually are not eligible to use to this system. You’ll have to make sure that to maintain any Corp or LLC signatures off of your purchase and registration documentation.
Does the Illinois EV rebate have an income limit? The short answer isn’t any, but your income still matters.
While income shouldn’t be a bar to eligibility for the rebate, low income applicants are presupposed to be prioritized when funding is dispersed. Low income is defined by the USA Department of Health and Human Services as not exceeding 80% of the state median income, and will depend on the variety of members within the household. The IEPA website states that the precise income thresholds considered can be included in each round of application instructions.
Which EVs Qualify for the Illinois Electric Vehicle Rebate?
The Illinois EV rebate is just for brand new or used all-electric vehicle purchases, so hybrids (plug-in or otherwise) don’t count. Nonetheless, as we’ve already identified, an all-electric vehicle will be an electrical automotive, truck, SUV or motorcycle (but not a moped or off-road-only vehicle like a golf cart or ATV). And in contrast to requirements for the Federal EV Tax Credit, purchasing price isn’t a limiting factor unless it’s price lower than the rebate (unlikely for EVs apart from electric motorcycles).
Only electric vehicles sold by dealers positioned within the State of Illinois and licensed by the Illinois Secretary of State are eligible for the rebate. You may’t apply if the vehicle you purchased was an out of state purchase or purchased through a personal owner. And like we said earlier, this only applies to a fully-purchased vehicle: no rentals or leases allowed.
In the event you are purchasing a used EV, you’ll have to make sure that nobody else has previously gotten a rebate for that vehicle. The IEPA tracks these rebates by VIN and only allows each VIN to receive the rebate once. You may check the IEPA website for an inventory of VIN numbers for cars which have already received the rebate (currently, this list is a pdf positioned within the section called “VIN Lookup”).
How Does the EV Rebate in Illinois Work?
Very first thing’s first: you’ll have to buy a qualifying EV from a qualifying Illinois dealership. Only after you’ve purchased the automotive are you able to provide the documents required for the appliance. You might be only eligible to use inside 90 days of purchase, so it’s best to carry off on buying an EV until the subsequent funded rebate cycle is open if you ought to apply.
Next, you’ll need to supply 4 sorts of documentation in your application to this system:
- A replica of your bill of sale, the acquisition invoice, or your Illinois dealership’s purchase agreement.
- Proof of purchase: a voided copy of the check, or an invoice, or bill that shows the acquisition is paid in full, or the loan documentation for this transaction.
- A replica of your Illinois vehicle registration or the temp tags provided to you by your dealership if you purchased or took delivery of your EV.
- IRS W-9 or W-8 form
If the IEPA rejects your application, you’ll receive a letter of denial within the mail that states why your application was rejected, whether that involves you or your vehicle being ineligible, your application being incomplete, or if this system has insufficient funds. Nonetheless, receiving this letter doesn’t mean you’ll be able to’t apply again and qualify for the rebate in the longer term.
Then again, when you apply and are accepted into this system, the Illinois Comptroller will mail you a check for the rebate amount inside a couple of weeks of the closing of the present funding cycle. Remember, this program offers a rebate, not an EV tax credit. You’ll receive the actual amount that you just applied for within the mail slightly than reducing your tax burden (which is what the Federal EV Tax Credit program does).
How do you understand in case your application has been accepted? Well, you just must wait to see if a letter of denial or a check shows up at your mailing address. Apparently, within the case of the Illinois EV rebate program, no news is nice news.
We’ve already mentioned this, nevertheless it’s price restating: when you do get accepted by the Illinois EV rebate program, you’ll have to keep your EV for at least 12 months after buying it to maintain the $4000; otherwise, the State of Illinois can legally pursue the return of those funds. This helps this system profit actual consumers in this system as a substitute of giving the cash to resellers.
So here’s the thing: when funding for this system runs out or an application cycle closes (thus far, this has been a 3 month window for applying), there isn’t any solution to get in line for the rebate. On the time of writing, the November 1, 2022 – January 31, 2023 round of applications is closed. More importantly, it effectively closed early for the most recent round: funding for this system ran out by the second week of January.
There’s still excellent news, though: The Illinois Electric Vehicle Rebate Act says that this system is ready to run for not less than a decade, so applications should open back up again when the state secures more funding. In the event you are planning to purchase a qualifying EV in the subsequent three months, you actually should enroll for the Illinois Environmental Protection Agency’s EV Listserve (email signup is at the underside of the page) and keep your eyes open for funding announcements.
Need One other Technique to Save on EVs in Illinois?
While the Illinois Electric Vehicle Rebate is definitely an amazing solution to get some a refund in your pocket after purchasing an EV, it’s not guaranteed. And with the uncertainty about when funding can be available for this system, most Illinois residents are free to search for one of the best used EV deal even off the plenty of Illinois-only dealers.
Prices for EVs on the used market have fallen rapidly from their heights in 2020-2022. In 2023, buyers can find incredible deals on the private market. But finding those deals will be stuffed with frustration on traditional listing sites that slap EV and ICE cars together in the identical crowded space.
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