Electric Vehicle (EV) and EV Charger 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 charger manufacturers. Credits are available in two tiers. Tier 1 credits are available to EV, EV component, and EV charger manufacturers that invest a minimum of $20 million and create 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 $100 million and retain at least 50 full-time jobs within 5 years in Illinois.

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. Tier 2 applicants may also be eligible for the following tax exemptions:

Tax Exemption Overview	Credit Expiration
Exemption from retailer occupation tax paid on building materials	15 years
Exemption from state utility tax for electricity and natural gas	15 years
Exemption on telecommunication excise tax and ICC administrative charge	10 years

Tier 2 applicants may also qualify for an income tax credit worth 0.5% of the investment in qualified property. Credits may be claimed beginning January 1, 2025. For more information, see the Illinois Department of Commerce and Economic Opportunity REV Illinois Program website.

(Reference 35 Illinois Compiled Statutes 5/236 and 5/237)