• Posted: April 17, 2024
• Alternative Fuel Infrastructure Tax Credit, Alternative Fuel Vehicle Refueling Property Credit, Clean School Bus Rebates Program, Climate and Equitable Jobs Act, ComEd’s Electric Vehicles for Education program, Commercial Clean Vehicle Credit, Congestion Mitigation and Air Quality Improvement (CMAQ) Program, DERA, Diesel Emission Reduction Act, eBook, Electric Vehicle Rebate Program, EPA, EV Business Owners, ev fleets, EVITP certified, FedEx, Fleet User Fee Exemption, IEPA, Illinois Environmental Protection Agency, Illinois Environmental Protection Agency (EPA), incentives, rebates, Reimagining Electric Vehicles in Illinois Program, REV Illinois Program, Tax Credits, Volkswagen Environmental Mitigation Trust

Rebates And Incentives: Up To 80% Off EV Charger Installation Costs 

The big rebates and incentives that are included in the Climate and Equitable Jobs Act are even more reason to invest in EV charging. The Illinois Environmental Protection Agency (EPA) is issuing rebates to public and private entities for the installation and maintenance of Level 2 or 3 charging stations as part of this legislation. Rebates may cover up to 80% of the eligible project costs. Additional rebates are available for charging stations in underserved and environmental justice communities. For the latest information, visit the Climate and Equitable Jobs Act website and sign up to subscribe to the program’s email list at the bottom of the page.

Federal And State Rebates And Incentives

 EV Charging Equipment & Infrastructure Incentives: Under the Alternative Fuel Infrastructure Tax Credit in Illinois, consumers purchasing qualified residential fueling equipment between January 1, 2023, and December 31, 2032, may receive a tax credit of up to $1,000. Businesses investing in similar equipment for electricity and alternative fuels are eligible for a 30% tax credit, or 6% for depreciable property, with a cap of $100,000. Additionally, under the Alternative Fuel Vehicle Refueling Property Credit, both consumers and businesses installing qualified vehicle refueling and recharging property in low-income or non-urban census tracts may also be eligible for tax credits up to $100,000. These incentives are part of efforts to encourage the adoption of eco-friendly fuel solutions and to qualify, installations must meet specific location requirements. 

Purchasing an Electric Vehicle – Rebates & Incentives: Under the Climate and Equitable Jobs Act, the Illinois EPA was directed to establish rebate and grant programs for electric vehicles and charging stations and oversee the phase-out of fossil fuel-fired electrical generation units, and thus created the Electric Vehicle Rebate Program. 

Illinois residents who purchase a new or used all-electric vehicle from an Illinois-licensed dealer may be eligible for an Illinois Electric Vehicle 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. 

Visit the Electric Vehicle Rebate Program page on the Illinois EPA website and scroll to the bottom to sign up for email alerts to receive timely program updates. The program offers Illinois residents up to $4,000 off the cost of a new or used EV. To be eligible, the vehicle must be all-electric (hybrids are ineligible) and purchased from an Illinois-licensed dealer.

On a federal level, for EVs placed into service after December 31, 2022, the Inflation Reduction Act extends the up to $7,500 EV tax credit for 10 years—until December 2032. The exact amount of the credit is based on a number of factors like the vehicle’s sourcing and assembly. Additionally, some used EVs are also eligible for a separate credit of either $4,000 or 30% of the price of the vehicle, whichever is less.

In 2024 you now have the option to take the EV tax credit as a discount at the time you purchase the vehicle. This works by transferring the tax credit to the dealer who is able to lower the price of the vehicle by the amount of the credit—this way, you won’t have to wait until tax time to benefit from the tax break.

Benefits For Business Owners 

While the benefits of electrification are real for businesses, organizations and facilities of all types, there are specific benefits for electrified vehicle fleets. To start, if you maintain a fleet, EVs can cost up to 40% less to maintain, due to a decreased need for ongoing maintenance such as oil changes. Additionally, the cost of electricity required to drive 15,000 miles is 70 percent less than the cost of gas. 

Realizing the long-term savings and environmental benefits, logistics and ride-sharing companies are racing to make the shift to electric vehicles. For example, FedEx is on track to achieve the goal of a fully electrified parcel fleet by 2040. Governments and municipalities are also moving quickly to adapt to EV fleets, as evidenced by President Biden pledging to replace nearly 650,000 federal fleet vehicles with electric models.

School districts in the Chicagoland area operating driver education programs have the opportunity to capture significant savings by transitioning to an electric fleet. They may be eligible for financial support to purchase EVs and EVSE for their existing driver education programs through ComEd’s Electric Vehicles for Education program. Additionally, on the federal level, schools may be able to access funds through the Environmental Protection Agency’s Clean School Bus Rebates Program. Although the first round of funding for this program recently closed, visit the EPA website for announcements of future funding and opportunities at https://www.epa.gov/cleanschoolbus.

Diesel Emission Reduction Grants 

The Illinois Environmental Protection Agency (IEPA) administers the Driving a Cleaner Illinois program for diesel emission reduction projects. Projects are funded by Illinois’ portion of the Volkswagen Environmental Mitigation Trust, the U.S. Environmental Protection Agency’s Diesel Emission Reduction Act (DERA) Program, and the U.S. Department of Transportation Federal Highway Administration’s Congestion Mitigation and Air Quality Improvement (CMAQ) Program. For more information, including funding availability, see the IEPA Driving a Cleaner Illinois website.

Manufacturing Tax Credits 

The Illinois Department of Commerce and Economic Opportunity‘s Reimagining Electric Vehicles in Illinois Program (REV Illinois Program) offers tax credits to eligible EV, EV component parts, and EV charging station manufacturers. Tax credit amounts vary and additional eligibility requirements may apply. Tax credits increase for businesses located in priority areas, which includes underserved communities or communities in energy transition areas. Credits may be claimed beginning January 1, 2025. For more information, see the Illinois Department of Commerce and Economic Opportunity REV Illinois Program.

EV Charging Station Grants 

The Illinois Environmental Protection Agency (IEPA) offers grants to public and private entities for the installation and maintenance of publicly available Level 2 and direct current fast charging (DCFC) stations. Rebate awards may cover up to 80% of the eligible project costs. Additional rebates are available for EV charging stations deployed in underserved and environmental justice communities. For more information, see the IEPA Climate and Equitable Jobs Act website.

Fleet owners in Illinois can enjoy extra savings thanks to the Fleet User Fee Exemption, which exempts owners of electric vehicles from paying an annual fee of $20 per vehicle, further incentivizing the adoption of eco-friendly transportation. 

Also consider the IRS’ Commercial Clean Vehicle Credit, which may qualify businesses and tax-exempt organizations for a credit of up to $40,000. Learn more by visiting https://www.irs.gov/credits-deductions/commercial-clean-vehicle-credit. For the most up-to-date list of EV credits and deductions, visit https://www.irs.gov/credits-anddeductions-under-the-inflation-reduction-act-of-2022.

Many federally funded EV transportation grants or incentive programs require the electrical contractor installing the infrastructure to have additional training on EV charging technology, including the “EVITP” Certification. The “Electric Vehicle Infrastructure Training Program,” or EVITP, was designed to provide qualified electricians with the most comprehensive training available in the market today to ensure safe and compliant installation of EV charging infrastructure across the nation. Most Powering Chicago electrical contractors are EVITP certified. You can learn more about this specialty certification and search for an approved contractor at www.evitp.org

For more information on electric vehicles, download our updated version of “The Time Is Now: Considerations for EV Charging Infrastructure” eBook.