The Illinois Environmental Protection Agency began accepting applications this week for its latest round of the electric vehicle rebate program. The agency urges people to submit their materials quickly, because “substantial interest” and lower funding for the popular program means it will likely send out fewer checks.
This rebate cycle, which started Wednesday and runs until Jan. 31, is open to Illinois residents who purchase a new or used EV from a licensed dealer within the state. Applicants must apply within 90 days of buying a vehicle, in addition to other requirements. There’s a $4,000 rebate for vehicles and $1,500 for motorcycles.
However, this year’s state budget includes just $12 million for the rebates, nearly a 40% decrease compared with what was allocated for the previous round. And the money, which will provide about 3,000 rebates, is on track to run out well before the end of January.
Kim Biggs, a spokesperson for the Illinois EPA, said the agency will review applications in postmark order, with those from low-income purchasers receiving priority. She said they will review, but not process, non-low-income applications until the end of the funding cycle.
“The increased interest and adoption of electric vehicles in Illinois has resulted in an overwhelming response to the Illinois EV Rebate Program,” said state EPA Director John Kim in a news release.
According to data from the Illinois secretary of state, there were about 6,300 new EVs on the road from Aug. 15 to Oct. 15. Vehicles purchased on or after Aug. 3 could be eligible for this rebate cycle, since it meets the 90-day purchase window timeline.
Brian Urbaszewski, director of environmental health programs at the Respiratory Health Association, called the system a “glorified lottery,” saying the state should be more upfront about the likelihood of getting a rebate due to the budget cut.
“It would be helpful for people to know that hey, the money may be gone in a month, so if I’m going to buy I need to do it now, or if I’m not thinking of buying a car until three months from now I have to assume that the EV rebate from the state isn’t going to be there for me,” he said. “Some clarity really needs to be injected into this and some clear ways to make sure consumers know what’s going on.”
Some EV owners, especially those with moderate incomes, count on the rebates, Urbaszewski said. He said he’s worried annoyance with the program could discourage people from purchasing electric vehicles, something he said is important for improving air quality and curbing greenhouse gas emissions.
“It’s a little disconcerting when you’re trying to make a purchase that’s expensive, and you’re not sure if you’re going to get a $4,000 rebate from the state or not,” he said. “It’s especially concerning if you’re stretching to make that happen.”
The rebate program launched in July 2022, with the EPA issuing more than 4,800 rebates totaling $19.4 million. More than 1,300 qualifying applications didn’t receive a rebate because the funding ran out, even with the heftier budget, Biggs said. She said the EPA will post an announcement on its website and inform anyone who already applied if the money runs out this year.
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The program was created under the Climate and Equitable Jobs Act, which Gov. J.B. Pritzker signed in fall 2021.
“The livelihood of our neighborhoods depends on access to affordable, clean energy technology — and Illinoisans now have the chance to help us combat the climate crisis and reach our ambitious goal of putting 1 million EVs on the road by 2030,” Pritzker said.
Arthur Burton, president of the Chicago Metro Electric Vehicle Association, said while the decrease in the program’s budget isn’t ideal, one of the aspects he likes about Illinois’ program is that it includes rebates for used vehicles. Burton said he recently ordered a Rivian SUV.
Beyond rebates, Burton thinks more infrastructure, especially charging stations, would prompt others to purchase an EV.
“Especially in our cities, the demand is growing rapidly,” he said.
According to the EPA, other eligibility requirements for the rebate include:
- The rebate application must be postmarked within the rebate cycle that begins Nov. 1.
- The purchaser must reside in Illinois at the time of vehicle purchase and at the time the rebate is issued.
- The vehicle cannot have been the subject of a previous EV rebate under this program.
- Only individuals can receive a rebate, and an individual can receive only one EV rebate under this program.
- 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.
- Documentation requirements include copies of the purchase invoice, proof of payment, vehicle registration, and IRS W-9 or W-8 records.