Electricity Laws and Incentives in Illinois
The list below contains summaries of all Illinois laws and incentives related to electricity.
Laws and Regulations
Advanced Vehicle Acquisition and Biodiesel Fuel Use Requirement
All gasoline-powered vehicles purchased with state funds must be flex fuel vehicles (FFVs) or fuel-efficient hybrid electric vehicles (HEVs). FFVs are defined as automobiles or light trucks that operate on either gasoline or 85% ethanol (E85) fuel. Fuel-efficient HEVs are defined as automobiles or light trucks that use a gasoline or diesel engine and an electric motor to provide power and that gain at least a 20% increase in combined U.S. Environmental Protection Agency city-highway fuel economy over a comparable conventionally-powered model. Any vehicle purchased with state funds that is fueled with diesel fuel must be certified by the manufacturer to run on 5% biodiesel (B5) fuel.
15% of all vehicles purchased with state funds must be fueled by electricity, natural gas, or liquefied petroleum gas, with the exception of Department of Corrections, Department of State Police patrol, and Secretary of State vehicles. Additional exemptions may apply.
The Chief Procurement Officer may determine that certain vehicle procurements are exempt from these requirements based on intended use or other reasonable considerations such as health and safety of Illinois citizens.
(Reference 30 Illinois Compiled Statutes 500/25-75)
Battery Electric Vehicle (BEV) Fee
BEV owners must pay an annual fee of $100 in addition to standard registration fees. A portion of the fees contribute to the Illinois Road Fund.
(Reference 625 Illinois Compiled Statutes 5/3-805)
Electric Vehicle (EV) Charging Station Building Standards for Residential Developments
Beginning January 1, 2024, new construction of single-family homes must include a minimum of one EV-capable parking spot. New single-family homes or small multifamily dwellings that qualify as affordable housing must have one EV-capable parking space per dwelling.
Beginning March 31, 2024, all parking spaces at newly constructed or renovated large multifamily dwellings must be EV-capable.
Building permits for affordable single-family and multifamily developments must meet the following benchmarks to support the development of EV-capable parking spaces:
Beginning January 1, 2026, 40% of parking spaces must be EV-capable;
Beginning January 1, 2029, 50% of parking spaces must be EV-capable; and,
Beginning January 1, 2034, 70% of parking spaces must be EV-capable.
EV-capable parking spaces have electric panel capacity and conduit to support a Level 2 EV charging station. Additional requirements apply.
(Reference Senate Bill 40, 2023)
Electric Vehicle (EV) Charging Station Installation Requirements
Vendors that install EV charging stations must comply with Illinois Commerce Commission (ICC) certification requirements. For specific requirements, see the ICC EV Charging Station Installer Certification website.
(Reference 220 Illinois Compiled Statutes 5/3-105, 5/16-102, and 5/16-128A)
Electric Vehicle (EV) Charging Station Policies for Condominiums
Beginning January 1, 2024, condominium or common interest associations may not prohibit or restrict the installation or use of EV charging stations in a unit owner’s designated parking space. Associations may put reasonable restrictions on EV charging stations, but the policies may not increase the cost of the EV charging station or decrease its performance. Homeowners must comply with applicable health and safety codes and architectural standards, engage a licensed installation contractor, and provide a certificate of insurance. The unit owner is responsible for the cost of electricity consumption; the installation, operation, maintenance, repair, removal, or replacement of the station in their parking space; and any resulting damage to the EV charging station or surrounding area. Associations may also install EV charging stations in common areas for all unit owners and members of the association to use. Additional requirements apply.
(Reference Senate Bill 40, 2023)
Electric Vehicle (EV) Charging Station Policies for Renters
Beginning January 1, 2024, a tenant may install a Level 1 or Level 2 EV charging station at a parking space allotted for the lessee. Landlords may require reimbursement for EV charging station electricity consumption, charge a fee for access if a networked EV charging station, and charge a security deposit to cover the cost of restoring the property to its original condition if the tenant removes the EV charging station. The landlord may also require reimbursement for any wiring or electrical upgrades necessary to support the EV charging station. Renters must comply with applicable health and safety codes and architectural standards, engage a licensed installation contractor, and provide a certificate of insurance. Additional requirements apply.
(Reference Senate Bill 40, 2023)
Electric Vehicle (EV) Parking Space Regulation
An individual may not park a motor vehicle within any parking space specifically designated for parking and charging EVs unless the motor vehicle is a EV. Violators may be subject to a fine of up to $100, in addition to costs associated with the removal of the vehicle from the parking spot.
(Reference 625 Illinois Compiled Statutes 5/11-1308)
Electric Vehicle (EV) Permitting Support
The Illinois Environmental Protection Agency must convene an EV Permitting Task Force (Task Force) to examine the following:
- Existing or potential challenges related to EV permitting;
- State EV permitting fees and revenue generated from those fees;
- Permitting needs of EV, EV charging station, and EV component parts manufacturers;
- Recommendations to expedite permitting related to EVs;
- Recommendations for the fee structure of permits related to EVs;
- Impacts that state and local permitting processes have on the EV charging station deployments; and,
- Legislative and regulatory actions that can support the EV industry and charging station deployment.
The Task Force must publish a report of their findings by August 1, 2022.
(Reference Reference Public Act 102-0996)
Highway Electric Vehicle (EV) Charging Station Installation Authorization
The Illinois Department of Transportation (IDOT) may install EV charging stations at each interstate highway rest area where electrical service will reasonably permit, if these installations and charging EV charging station user fees are allowed by federal regulations. IDOT may adopt specifications detailing the type of EV charging station and rules governing station siting, user fees, and maintenance.
(Reference 605 Illinois Compiled Statutes 5/4-223)
Lake Michigan Electric Vehicle (EV) Circuit
Illinois joined Michigan, Indiana, and Wisconsin (Signatory States) in signing the Lake Michigan EV Circuit Tour memorandum of understanding (MOU) to create an EV charging corridor along the Lake Michigan coastline that is intended to make it possible to seamlessly drive an EV across the Signatory States’ that border Lake Michigan. Signatory States are committed to:
- Coordinating on regional EV charging infrastructure siting and deployment strategies;
- Achieving a consistent EV charging station user experience across Signatory States;
- Encouraging EV tourism around Lake Michigan;
- Removing barriers to EV adoption and reducing range anxiety;
- Identifying and developing best practices for EV charging, infrastructure optimization, information sharing, and electricity demand management;
- Providing reliable long-distance driving routes for EV drivers.
The Signatory States will maintain a working group composed of senior leadership from each state who will meet and report on the above actions. For more information, see the MOU.
Public Utility Definition
An entity that owns, controls, operates, or manages a facility that supplies electricity to the public exclusively to charge all-electric and plug-in hybrid electric vehicles are not defined as a public utility. An entity that supplies compressed natural gas to fuel natural gas vehicles is also not defined as a public utility.
(Reference 220 Illinois Compiled Statutes 5/3-105 and 20 Illinois Compiled Statutes 627/10)
Regional Electric Vehicle (REV) Midwest Plan
Illinois joined Indiana, Michigan, Minnesota, and Wisconsin (Signatory States) in signing the REV Midwest memorandum of understanding (MOU) to accelerate vehicle electrification in the Midwest. Signatory States are committed to:
- Accelerate medium- and heavy-duty fleet electrification;
- Collaborate on regional electric vehicle (EV) charging station siting and deployment analyses with a focus on commercial routes;
- Standardize regulations, messaging, and customer experience related to electric vehicles (EVs) across state lines;
- Evaluate opportunities for workforce development;
- Identify historically disadvantaged communities for equitable EV charging station development and EV adoption; and,
- Educate consumers and fleet owners to raise EV awareness, reduce range anxiety, and increase EV adoption.
The Signatory States maintain a coordination group composed of senior leadership from each state who meet and report on the above actions. For more information, see the REV Midwest Partnership Announcement.
Toll Highway Electric Vehicle (EV) Charging Station Installation Requirement
The Illinois State Toll Highway Authority (ISTHA) must construct and maintain at least one EV charging station at any location along toll highways where it has entered into an agreement with an entity for the purposes of providing motor fuel service stations and facilities, garages, stores, or restaurants. ISTHA may charge a fee for the use of the EV charging stations to offset the costs of construction and maintenance. ISTHA may also adopt rules regarding station siting, user fees and maintenance.
(Reference 605 Illinois Compiled Statutes 10/11(e))
Utility Electric Vehicle (EV) Program Development Requirements
The Illinois Commerce Commission (ICC) must convene a workshop to collect input for the design of utility beneficial electrification programs. The workshop must evaluate barriers, incentives, rate structures, investment opportunities, and other considerations for facilitating EV adoption. In March 2022, ICC published a report on workshop findings and recommendations for utility transportation electrification investments and incentives.
By July 1, 2022, electric utilities serving more than 500,000 customers must file a beneficial electrification plan with the ICC. Utility filings must take into consideration the ICC workshop report. The ICC must review and approve proposals by March 28, 2023. For more information, see the ICC Beneficial Electrification Workshops website.
(Reference Senate Bill 2940, 2022 and 20 Illinois Compiled Statutes 627/45)
Zero-Emission Vehicles (ZEV) Deployment Support
The Illinois Department of Central Management Services (CMS) must establish a State Fleet Working Group (Group) to develop and implement a ZEV procurement program for state agencies. The Group must propose standard procedures, identify external funding, evaluate financing and infrastructure needs, and develop a guide to assist agencies in electric vehicle fleet management. Additionally, CMS must develop a plan to install electric vehicle supply equipment on state property for visitor, employee, and state fleet use. The plan must use funding from the Rebuild Illinois Capital Plan where feasible.
(Reference Executive Order 8, 2021)
State Incentives
Battery Electric Vehicle (BEV) Emissions Inspection Exemption
BEVs are exempt from state motor vehicle emissions inspections. For more information, see the Illinois Environmental Protection Agency’s Vehicle Emissions Testing Program website.
(Reference 625 Illinois Compiled Statutes 5/13C)
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.
Electric Vehicle (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.
(Reference Public Act 102-0662)
Electric Vehicle (EV) Rebates
The Illinois Environmental Protection Agency (IEPA) offers rebates to residents for the purchase of a new or pre-owned EV. Rebates amounts are available according to the following schedule:
| Purchase Timeframe | Rebate Amount |
|---|---|
| July 1, 2022 – June 30, 2026 | $4,000 |
| July 1, 2026 – June 30, 2027 | $2,000 |
| Beginning July 1, 2028 | $1,500 |
IEPA also offers rebates of $1,500 to Illinois residents for the purchase of an electric motorcycle. EV owners must apply for the rebate within 90 days of purchasing or leasing and registering the EV in Illinois. Applicants may only receive one rebate in a 10-year period. Rebate award amounts may not exceed the purchase price of the vehicle. Low-income applicants will be given funding priority. Additional restrictions apply. For more information, see the IEPA EV Rebate website.
(Reference Public Act 102-0662)
Electric Vehicle (EV) and EV Charging Station 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. Credits are available in two tiers. Tier 1 credits are available to EV, EV component, and EV charging station manufacturers that invest a minimum of $20 million and create a at least 50 new jobs within 4 years in Illinois. Tier 2 credits are available to the following entities:
- EV manufacturers that invest a minimum of $1.5 billion and create at least 500 jobs within 5 years in Illinois;
- EV component part manufacturers that invest a minimum of $300 million and create at least 150 jobs within 5 years in Illinois; and,
- Manufacturers converting existing facilities to allow for EV and EV component production that invest a minimum of $500 million and retain at least 800 full-time jobs within 5 years in Illinois.
| Tax Exemption Overview | Credit Expiration |
|---|---|
| Exemption from retailer occupation tax paid on building materials | 5 years |
| Exemption from state utility tax for electricity and natural gas | 10 years |
| Exemption on telecommunication excise tax and ICC administrative charge | 10 years |
Credits may be claimed beginning January 1, 2025. For more information, see the Illinois Department of Commerce and Economic Opportunity REV Illinois Program
(Reference Public Act 102-0669 and Senate Bill 1963, 2023)
Fleet User Fee Exemption
Fleets with 10 or more vehicles located in defined areas of the state must pay an annual fee of $20 per vehicle in addition to registration fees. Owners of electric vehicles are exempt from this fee. The Office of the Illinois Secretary of State deposits all fees into the Electric Vehicle Rebate Fund.
(Reference Illinois Compiled Statutes 120/35)
Illinois' National Electric Vehicle Infrastructure (NEVI) Planning
The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Illinois Department of Transportation (IDOT) to submit an annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office of Energy and Transportation (Joint Office), describing how the state intends to distribute NEVI funds. The submitted plans must be established according to NEVI guidance.
For more information about Illinois’ NEVI planning process, see the IDOT Drive Electric Illinois website. To review Illinois’ NEVI plan, see the Joint Office State Plans for EV Charging website.
School Bus Retrofit Reimbursement
The Illinois Department of Education will reimburse any qualifying school district for the cost of converting gasoline buses to more fuel-efficient engines or to engines using alternative fuels. Restrictions may apply.
(Reference 105 Illinois Compiled Statutes 5/29-5)
Smart Grid Infrastructure Development and Support
The Illinois Science and Energy Innovation Trust (Trust) will provide financial and technical support to public and private entities within the state for programs and projects that support, encourage, or utilize innovative technologies and methods to modernize the state’s electric grid. Technologies may include advanced electricity storage and peak-shaving technologies, such as electric vehicles (EV) or devices that allow EVs to engage in smart grid functions. The Trust also offers assistance for standards development for communication and interoperability of appliances and equipment connected to the electric grid. Electric utilities may voluntarily commit to investments in smart grid advanced metering infrastructure deployment. Participating utilities must consult with the Smart Grid Advisory Council and file a Smart Grid Advanced Metering Infrastructure Deployment Plan with the Illinois Commerce Commission.
(Reference 220 Illinois Compiled Statutes 5/16-108.5 through 108.7)
Transportation Electrification Infrastructure Projects
The Illinois Environmental Protection Agency (IEPA) will provide transportation electrification grants of $70,000,000 for, but not limited to, electric vehicle charging infrastructure. The IEPA will prioritize investments in medium- and heavy-duty vehicle charging, and electrification of public transit, fleets, and school buses.
(Reference Public Act 101-0029)
Utility / Private Incentives
Electric Vehicle (EV) Infrastructure Support
Illinois utilities joined the National Electric Highway Coalition (NEHC), committing to create a network of direct current fast charging (DCFC) stations connecting major highway systems from the Atlantic Coast to the Pacific of the United States. NEHC utility members agree to ensure efficient and effective fast charging deployment plans that enable long distance EV travel, avoiding duplication among coalition utilities, and complement existing corridor DCFC sites. For more information, including a list of participating utilities and states, see the NEHC website.
Electric Vehicle (EV) Time-Of-Use (TOU) Rate - Ameren Illinois
Ameren Illinois offers a TOU rate to residential customers that own or lease a EV. For more information, see the Ameren Illinois EV Rate Residential Program website.
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