Expired, Repealed, and Archived Illinois Incentives and Laws
The following is a list of expired, repealed, and archived incentives, laws, regulations, funding opportunities, or other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality.
Through December 31, 2023, a sales and use tax of 6.25% applies to 100% of the proceeds from the sale of fuel blends containing 10% ethanol (E10) and fuel blends containing between 1% and 10% biodiesel (B1-B10). If at any time the sales and use tax is 1.25%, the tax on biodiesel blends will apply to 100% of the proceeds of sales made after December 31, 2028.
Sales and use taxes do not apply to the proceeds from the sale of biodiesel blends containing between 11% and 99% biodiesel (B11-B99) or fuels containing between 70% and 90% ethanol (E70-E90). Taxes will apply to 100% of the proceeds from the sale of biodiesel and ethanol fuel blends made after December 31, 2028.
(Reference 35 Illinois Compiled Statues 120/2-10, 105/3-10, and 105/3-44 and Senate Bill 1963, 2023)
The Illinois Department of Transportation (IDOT) must conduct a study to examine how EVs will impact transportation infrastructure funds. IDOT must include recommendations for revenue recovery and publish their findings by September 30, 2022.
(Reference 20 Illinois Compiled Statutes 627/60)
The Illinois Department of Transportation’s (IDOT) Autonomous Illinois initiative was established to promote the development, testing, and deployment of CAV technologies and related infrastructure. IDOT partners with state agencies to:
- Review CAV research, pilot projects, and other relevant information to determine best practices for vehicle testing, technology deployment, law enforcement collaboration, insurance coverage, liability determinations, data-sharing arrangements, privacy issues, and infrastructure needs;
- Evaluate current laws and regulations applicable to CAVs;
- Pursue opportunities to make Illinois a leader in CAV transportation;
- Collaborate with industry experts on the latest developments in CAV systems, cybersecurity, network infrastructure, and other innovative areas;
- Work with stakeholders to strengthen the sharing and analysis of CAV generated data to enhance planning, operations and maintenance throughout the state and identify areas of interest and potential pilot projects related to improved safety and mobility for the elderly, disabled, and underserved populations;
- Develop and implement a plan to address changing education and workforce training needs related to CAV technology development;
- Identify public-private partnership opportunities to increase efficiency in the transportation network and seek savings for taxpayers;
- Maintain a website to provide updates on the Autonomous Illinois initiative and offer educational resources for the public and interested stakeholders; and
Inform Illinois agencies, partner entities, and the public about the work of the Autonomous Illinois and its findings.
For more information, see the State of Illinois CAVs Overview report.
(Reference Executive Order 13, 2018)
The Department of Commerce and Economic Opportunity must convene a Hydrogen Economy Task Force (Task Force). The Task Force must:
Establish a plan to create, support, develop, or partner with a Hydrogen Hub (Hub) in Illinois, and determine how to maximize federal financial incentives to support Hub development;
Identify opportunities to integrate hydrogen in the transportation, energy, industrial, agricultural, and other sectors;
Identify barriers to the widespread development of hydrogen, including within environmental justice communities; and,
Recommend government policies to catalyze the deployment of hydrogen in Illinois.
The Task Force must publish a report of its activities, findings, and recommendations by December 1, 2022.
(Reference Public Act 102-1086)
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)
Illinois state agencies must work towards meeting the following goals:
- By July 1, 2025, at least 60% of new passenger vehicles purchased must be hybrid electric vehicles (HEVs) and 15% must be battery electric vehicles (BEVs).
- Agencies that operate medium- and heavy-duty vehicles must implement strategies to reduce fuel consumption through diesel emission control devices, HEV and EV technologies, alternative fuel use, and fuel-efficient technologies.
- Agencies must also implement strategies to promote the use of biofuels in state vehicles; reduce the environmental impacts of employee travel; and encourage employees to adopt alternative travel methods.
Vehicles designated as specialty, police, and emergency vehicles by the Illinois Department of Central Management Services are exempt from these goals but should make all reasonable efforts to minimize petroleum usage.
(Reference Executive Order 11, 2009)
Illinois Electric Cooperative (Co-op) members are eligible for loan financing at 0.5% for 60 months for the purchase of new PEVs. Members must apply and be approved for financing before purchase. The Co-op also offers a PEV time-of-use electricity rate for residential customers who own a PEV. The PEV rate is optional and requires installation of a separate meter. For more information, see the Illinois Electric Cooperative website.
EVs are eligible for a reduced biennial vehicle registration fee of $35. To qualify for the reduced fee, the EV must weigh 8,000 pounds or less and be propelled by an electric engine. This fee reduction is valid until January 1, 2020. (Reference Senate Bill 1939, 2019, and 625 Illinois Compiled Statutes 5/3-805)
The Illinois Clean Diesel Grant Program provides funding to local governments, school districts, school bus companies, colleges, universities, mass transit districts, businesses, and non-profit organizations to reduce diesel emissions. Funding is available statewide for school bus heaters, engine repowers of off-road equipment and marine vessels, and for natural gas and propane fleet vehicles in the Chicago area.
The Illinois Environmental Protection Agency (EPA) established the Driving a Cleaner Illinois program to administer funds awarded through the Volkswagen Environmental Mitigation Trust. Funding is available for the replacement of existing government-owned diesel public transit buses with new diesel, alternative fuel, and all-electric transit buses, as well as for all-electric school bus pilot projects. For more information, including how to apply, see the Illinois EPA Grant Accountability and Transparency Act page.
Sales and use taxes apply to 80% of the proceeds from the sale of fuels containing 10% ethanol (E10) made between July 1, 2003, and December 31, 2018. If at any time these taxes are imposed at a rate of 1.25%, the tax on E10 will apply to 100% of the proceeds of sales. State sales and use taxes do not apply to fuels containing between 70% and 90% ethanol (E70-E90) sold between July 1, 2003, and December 31, 2018. Taxes will apply to 100% of the proceeds from ethanol fuel blend sales made after December 31, 2018. (Reference 35 Illinois Compiled Statutes 120/2-10, 105/3-10, and 105/3-44)
The Illinois Electric Vehicle Advisory Council (Council) was established to investigate and recommend strategies that the governor and the general assembly can implement to promote the use of PEVs, including potential infrastructure improvements. The Council published recommendations in its Final Report. An Electric Vehicle Coordinator serves as the point of contact for related policies and activities in the state. (Reference 20 Illinois Compiled Statutes 627/1-25)
The Green Governments Illinois Act (Act) demonstrates the state's commitment to reduce negative environmental impacts, reduce greenhouse gases, and preserve resources for current and future generations. The Act also aims to strengthen the capacity of local governments and educational institutions to enable a more environmentally sustainable future. The Act established the Green Governments Coordinating Council (Council) to fully integrate cost-effective environmental sustainability measures into the ongoing management systems, long-range planning, and daily operations of state agencies. The Council will focus on initiatives that relate to energy efficiency, renewable energy, and alternative fuel vehicles. Local governments and educational institutes are not required to participate in the provisions of the Act. (Reference 20 Illinois Compiled Statutes 3954/1 to 3954/45)
The Illinois Green Fleets Program recognizes and provides additional marketing opportunities for fleets in Illinois that have a significant number of AFVs and use clean, domestically produced fuels. For more information, see the Illinois Green Fleets Program website.
The Illinois Alternate Fuels Rebate Program provides a rebate for 80%, up to $4,000, of the incremental cost of purchasing an AFV; 80%, up to $4,000, of the cost of converting a conventional vehicle to an AFV using a federally certified conversion; and the incremental cost of purchasing alternative fuels. Eligible fuels for the program include E85, fuel blends containing at least 20% biodiesel (B20), natural gas, propane, electricity, and hydrogen. A vehicle may receive one rebate in its lifetime. Only AFVs purchased from an Illinois-based company or vendor may qualify, except if the vehicle is a heavy-duty specialty vehicle that is not sold in Illinois. To qualify for a fuel rebate, the entity or individual must purchase the majority of E85 or biodiesel fuel from Illinois retail stations or fuel suppliers. The E85 fuel rebate is up to $450 per year (depending on vehicle miles traveled) for up to three years for each flexible fuel vehicle that uses E85 at least half the time. The biodiesel fuel rebate (for B20 and higher blends) is for 80% of the incremental cost of the biodiesel fuel, as compared to conventional diesel. Rebates are part of the Illinois Green Fleets Program and are available to all qualified Illinois residents, businesses, government units (except federal government), and organizations located in Illinois. This program is suspended indefinitely (verified August 2016). For more information, including a list of eligible vehicles, see the Illinois Alternate Fuels Rebate Program. (Reference 415 Illinois Compiled Statutes 120/30)
The Illinois Department of Commerce and Economic Opportunity's (Department) Renewable Fuels Development Program is partnered with the Illinois Corn Marketing Board to fund new E85 fueling infrastructure at retail gasoline stations. The American Lung Association of Illinois-Iowa administers grants of up to $15,000 for a blender pump installation, $10,000 for a new E85 dispenser installation, and $7,500 to convert existing stations to dispense E85. The maximum grant amount is $15,000 per facility or $75,000 for four or more facilities. For more information, including program guidelines, see the Illinois E85 Infrastructure Development Program website.
The Illinois Department of Commerce and Economic Opportunity (Department) provides rebates to offset the cost of EVSE with SAE J1772 or CHAdeMo connectors. Rebates cover 50% of the cost of equipment and installation (including materials and labor), up to $3,750 per networked single station; $3,000 per non-networked single station; $7,500 per networked dual station; $6,000 per non-networked dual station; $15,000 per networked DC fast charge (DCFC) station; and $12,500 per non-networked DCFC station. The maximum possible total rebate award is $50,000. Eligible applicants include government entities, private businesses, educational institutions, non-profit organizations, and individual residents of Illinois. The funding cycle is currently closed (verified August 2016). Program requirements are subject to change with each new funding period.
Rebates are available to public and private entities for qualified propane commercial mowers. New propane commercial mowers are eligible for $1,500, and propane mower conversions are eligible for $1,000. Each recipient is limited to $4,500 in total rebates per year and is required to participate in case studies and provide product performance information.All conversion systems must be certified by the U.S. Environmental Protection Agency or the California Air Resources Board. Equipment must operate in Illinois for at least three years, or until sold. Funds are available on a first-come, first-served basis through December 31, 2016. Additional terms and conditions apply. For more information, see the Illinois Propane Gas Association website.
The Illinois Department of Commerce and Economic Opportunity provides grants up to $25,000 for the development of new biofuel production facilities through its Biofuels Business Planning Grant Program. Eligible activities include business planning, engineering designs, permit applications, and legal work. This program is suspended indefinitely (verified June 2016). For more information, see the Renewable Fuels Development Program website.
The Illinois Department of Commerce and Economic Opportunity's Renewable Fuels Development Program provides grants for the construction or expansion of biodiesel and ethanol production facilities. Each new facility must have a production capacity of at least 30 million gallons per year, and an existing facility must expand its production capacity by at least 30 million gallons per year to be eligible for funding. The total amount of the grant awarded may be up to 10% of the total construction costs of the facility or $5.5 million, whichever is less. This program is suspended indefinitely (verified June 2016). For more information, see the Renewable Fuels Development Program website. (Reference 20 Illinois Compiled Statutes 689/1 through 689/99)
The Illinois Ethanol Research Advisory Board manages and operates the National Corn-to-Ethanol Research Center (NCERC) Pilot Plant. The NCERC Pilot Plant aims to reduce the cost of producing ethanol through the development and commercialization of new production technologies, equipment, processes, feedstocks, and new value added co- and by-products. The Illinois Ethanol Research Advisory Board has six main responsibilities:
- Review the annual operating plans and budget of the NCERC Pilot Plant;
- Advise on research and development priorities and projects to be carried out at the NCERC Pilot Plant;
- Advise on policies and procedures regarding the management and operation of the NCERC Pilot Plant (including contracts, project selection, and personnel issues);
- Develop by-laws;
- Submit a final report to the governor and general assembly outlining progress, accomplishments, and a financial report for the year; and
- Establish and operate the NCERC at Southern Illinois University at Edwardsville as a State Biorefining Center of Excellence with a focus on areas including the following: performing collaborative research; offering training and educational services; advancing the state biofuels industry; pursuing funding sources; and serving as an independent source for testing and validation.
The Illinois State Board of Education must establish a grant program to develop two-year pilot programs to assist in the creation and promotion of green career and technical education programs in public secondary schools. Green industries include the production and distribution of biofuels and vehicle retrofits to operate using biofuels. (Reference 105 Illinois Compiled Statutes 5/2-3.151)
The Office of the Illinois Secretary of State must create a database of registered FFVs. The information in this database should include the zip code, vehicle make and model, and vehicle identification number of each FFV, and have the ability to sort by the number of vehicles per zip code. The database must be made available to the public in both print and electronic formats. Additionally, through June 30, 2014, the Office of the Secretary of State must notify owners of vehicles designed to carry 10 or fewer passengers via mail that many motor vehicles are capable of using E85. (Reference 415 Illinois Compiled Statutes 120/22 and 120/24)
Through the EV Project, ECOtality offers EVSE at no cost to individuals in the Chicago metropolitan area. To be eligible for free home charging stations, individuals living within the specified area must purchase a qualified plug-in electric vehicle (PEV). Individuals purchasing an eligible PEV should apply at the dealership at the time of vehicle purchase. The EV Project incentive program will also cover most, if not all, of the costs of EVSE installation. All participants in the EV Project incentive program must agree to anonymous data collection after installation. Additional restrictions may apply.
Phase Two of the Illinois Tollway Congestion-Relief Program includes a Dedicated Green Lanes Plan that will provide access to qualified hybrid electric vehicles.
The state legislature supports the federal '25x25' initiative, under which 25% of the total energy the United States consumes in 2025 would be produced from domestic agriculture. (Reference Senate Joint Resolution 42, 2009)
The following was repealed internally, effective January 1, 2012: The Illinois General Assembly established the Alternate Fuels Commission (Commission) within the Illinois Department of Commerce and Economic Opportunity to identify and recommend strategies to the governor and General Assembly for implementing and promoting the use of alternative fuels and alternative fuel vehicles. The Commission will identify ways to improve stakeholder communication and coordination regarding the research and promotion of alternative fuels. The Commission must issue written reports on their activities and findings on at least an annual basis. (Reference 415 Illinois Compiled Statutes 120/23)
The Illinois Legislature urges the U.S. Congress to enact legislation to extend the tax credits for domestic biodiesel production. (Reference Senate Resolution 808, 2010)
NEVs may operate only on streets with posted speed limits of 35 miles per hour (mph) or less, if authorized by the local government. NEVs are allowed to cross a road or street at an intersection where the road or street has a posted speed limit greater than 35 mph. Local governments may also restrict NEV access on their streets. NEVs are defined as self-propelled, electronically powered, four-wheeled motor vehicles (or a self-propelled, gasoline-powered four-wheeled motor vehicle with an engine displacement under 1,200 cubic centimeters) that are capable of attaining speeds of more than 20 mph, but not more than 25 mph. (Reference House Bill 6094, 2010, and 625 Illinois Compiled Statutes 5/1-148.3m and 5/11-1426.1)
The Illinois Climate Change Advisory Group was created to provide recommendations to the Office of the Governor regarding climate change policy and the statewide reduction of greenhouse gas emissions. Strategies to address these issues include development of clean, renewable, and homegrown energy resources; and reducing greenhouse gas emissions though the production and use of biofuels and other alternative fuels. (Reference Executive Order 11, 2006)
The Governor of Illinois developed an energy independence plan that sets a goal of replacing 50% of the state's energy supply with homegrown fuels by 2017. Specifically, in relation to biofuels, the plan will: 1) invest in renewable biofuels by providing financial incentives to build up to 20 new ethanol plants and five new biodiesel plants; and 2) increase the number of gasoline stations that sell biofuels, to ensure that all gasoline stations in the state offer E85 by 2017, help the auto industry increase the number of flexible fuel vehicles they produce, and increase public awareness about E85.
The state legislature supports the federal initiative to increase the Corporate Average Fuel Efficiency (CAFE) standards to an industry average of 35.5 miles per gallon in 2016 and to reduce greenhouse gas emissions from motor vehicles by approximately 30% over this same period. (Reference House Joint Resolution 63, 2009)
The Renewable Fuels Research, Development, and Demonstration Program is administered by the Illinois Department of Commerce and Economic Opportunity. The goals of this program are to promote and expand the use of biofuels such as ethanol and biodiesel as clean, renewable transportation fuels, and accelerate the commercialization of new renewable fuel technologies and products. The Biofuels Business Planning Grant Program, a subsidiary of the Illinois Renewable Fuels Research, Development, and Demonstration Program, provides grants of up to $25,000 for the development of business plans, engineering studies, design studies, permit applications, and legal work for potential new biofuel facilities in Illinois.
The Illinois Department of Central Management Services (CMS) is directed to take all actions necessary to enable the procurement of 2% biodiesel fuel blends (B2) for the state’s diesel vehicle fleet and also investigate ways to increase availability of E85 for the state’s flexible fuel vehicle (FFV) fleet. The CMS is directed to advise the Illinois Department of Commerce and Economic Opportunity in developing a plan to facilitate the use of E85 and B2 in the state fleet and expand the E85 and biodiesel fueling infrastructure. Additionally, the directors of all executive agencies using the state’s fleet of FFVs are directed to implement policies and procedures requiring state employees to use E85 and B2 in state vehicles whenever practical. Furthermore, state agencies are permitted to establish priorities for the acquisition of FFVs, especially hybrid electric vehicles that are capable of using E85, as well as diesel vehicles capable of using biodiesel. (Reference Executive Order 7, 2004)
Through the Green Rewards Program, the Illinois State Treasury offers a $1,000 rebate for the purchase of a new hybrid or other fuel efficient vehicle. Participating banks and credit unions agree to accept a discounted deposit rate from the state for one year in exchange for providing the $1,000 rebates to Illinois residents. The original vehicle purchase date must be on or after July 15, 2007, and rebates are available for one year. Rebates are available for new compressed natural gas, hybrid electric, electric, and fuel cell vehicles with less than 7,500 miles. Buyers must receive financing from a participating financial institution.
The Director of the Department of Central Management Services was instructed to prepare a thorough and comprehensive motor vehicle fleet management study, including, among other items, a proposal or recommendation for the implementation of means to research and promote the cost effective use of alternative fuels in state owned motor vehicles, particularly those fuels utilizing Illinois agricultural products. (Reference Executive Order Number 2, 2003)
The Illinois Department of Commerce and Economic Opportunity (DCEO) and the Illinois Coalition, along with 70 leaders from industry, academia, and the public sector, met in April 2003 with the vision of creating an Illinois industry around future developments in the field of hydrogen and fuel cell technology. Based on the recommendations of the group, the Illinois Coalition and DCEO formed a public-private partnership, Illinois 2 H2. These activities led to the publication of a report in March 2004, "The Hydrogen Highway: Illinois' Path to a Sustainable Economy and Environment" which includes numerous recommendations including the establishment of a 'Hydrogen Highway,' a corridor of hydrogen energy demonstration projects situated around I-90, with the purpose of stimulating the Illinois economy and protecting the environment.