Illinois $4,000 EV tax credit

[Just_me]

So in July 2022, Illinois is going to give a 4k tax credit for new or used EV. For some reason, even with the best of my google ability, I can’t find too much info on this one.

Does any here know if it will/can also apply to leases? Is it a credit or do you need 4k in Illinois taxes?

Any help would be appreciated. (I’m hoping for a 12k federal and a 4k state making for a very affordable lease - though I suspect we might just see the price raised by the tax credits).

[chimax]

That would’ve been nice, I’m in IL too. It’s purchases only. You have to buy in state, too This is taken straight from the document:

https://www.ilga.gov/legislation/102/SB/10200SB2408ham002.htm

[LongJeep]

Imagine getting a Jeep 4XE with 9% discount off MSRP, $7,500 fed tax incentive and $4,000 state tax credit. That’s like a $17K reduction on a $58K vehicle. Surely, someone can make money off of this arrangement even if you have to finance it instead of leasing.

[chimax]

Definitely, but I don’t think any Illinois dealers will play ball with that MSRP discount, especially in the Chicagoland area. Might be worth digging around the southern half of the state, though.

[wam22]

The rebate is only available as long as there is funding for it. IIRC, there is a $6 million pot that gets refilled from a $20 increase in registration. 1,500 EVs is not a lot, so I expect this program to be gone quickly. Used cars also qualify. Leased vehicles do not qualify.

[wam22]

6		(415 ILCS 120/27 new)
7		Sec. 27. ``Electric vehicle rebate.
8		(a) Beginning July 1, 2022, and continuing as long as
9		funds are available, each person shall be eligible to apply
10		for a rebate, in the amounts set forth below, following the
11		purchase of an electric vehicle in Illinois. The Agency shall
12		issue rebates consistent with the provisions of this Act and
13		any implementing regulations adopted by the Agency. In no
14		event shall a rebate amount exceed the purchase price of the
15		vehicle.
16		(1) Beginning July 1, 2022, a $4,000 rebate for the
17		purchase of an electric vehicle.
18		(2) Beginning July 1, 2026, a $2,000 rebate for the
19		purchase of an electric vehicle.
20		(3) Beginning July 1, 2028, a $1,000 rebate for the
21		`purchase of an electric vehicle.```
22		(b) To be eligible to receive a rebate, a purchaser must:
23		(1) Reside in Illinois, both at the time the vehicle
24		was purchased and at the time the rebate is issued.
25		(2) Purchase an electric vehicle in Illinois on or

10200SB2408ham002 - 947 - LRB102 11366 AMC 28893 a

1 after July 1, 2022 and be the owner of the vehicle at the
2 time the rebate is issued. **Rented or leased vehicles,
3 vehicles purchased from an out-of-state dealership, and
4 vehicles delivered to or received by the purchaser
5 out-of-state are not eligible for a rebate under this Act.
6 (3) Apply for the rebate within 90 days after the
7 vehicle purchase date, and provide to the Agency proof of
8 residence, proof of vehicle ownership, and proof that the
9 vehicle was purchased in Illinois, including a copy of a
10 purchase agreement noting an Illinois seller. The
11 purchaser must notify the Agency of any changes in
12 residency or ownership of the vehicle that occur between
13 application for a rebate and issuance of a rebate.
14 (c) The Agency shall make available in application
15 materials methods for purchasers to identify as low-income.
16 The Agency shall prioritize the review of qualified
17 applications from low-income purchasers and award rebates to
18 qualified purchasers accordingly.
19 (d) The purchaser must retain ownership of the vehicle for
20 a minimum of 12 consecutive months immediately after the
21 vehicle purchase date. The purchaser must continue to reside
22 in a covered area during that time frame and register the
23 vehicle in Illinois during that time frame. Rebate recipients
24 who fail to satisfy any of the above criteria will be required
25 to reimburse the Agency all or part of the original rebate
26 amount and shall notify the Agency within 60 days of failing to

[Just_me]

Too bad it can’t be applied to leased - Why let it be applied to used cars?

The only good news it it seems to be a rebate and not a tax credit, so you don’t need $4,000 in Illinois taxes to qualify. I do predict there are going to be a number of scams applying this to used cars. They are going to prioritize low income purchasers? It’s tough for low income to front the 4k to start with.