Search Federal and State Laws and Incentives

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)

Alternative Fuel Vehicle Labeling Requirement

Vehicles powered by liquefied petroleum gas (propane) or compressed natural gas (CNG) must visibly display identifying decals, as established by the National Fire Protection Association’s standards for the Storage and Handling of Liquefied Petroleum Gases and for CNG Vehicular Fuel Systems.

(Reference 625 Illinois Compiled Statutes 5/12-704.3)

Biofuels Tax Exemption

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.

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, 2023.

(Reference 35 Illinois Compiled Statues 120/2-10, 105/3-10, and 105/3-44)

Biofuels Preference for State Vehicle Procurement

When awarding contracts that require vehicle procurement, state agencies may give preference to an otherwise qualified bidder who will fulfill the contract through the use of vehicles powered by ethanol produced from Illinois corn or biodiesel produced from Illinois soybeans.

(Reference 30 Illinois Compiled Statutes 500/45-60)

Biodiesel Blend Use Requirement

Any diesel-powered vehicle owned or operated by the state, county or local government, school district, community college, public college or university, or mass transit agency must use a biodiesel blend that contains at least 5% biodiesel (B5) when fueling at a bulk central fueling facility. These entities are required to use B5 where available unless the vehicle engine is designed or retrofitted to operate on a higher percentage of biodiesel or on ultra-low sulfur diesel.

(Reference 20 Illinois Compiled Statutes 689/10 and 625 Illinois Compiled Statutes 5/12-705.1)

Idle Reduction Requirement

A person that operates a diesel powered motor vehicle with a gross vehicle weight rating (GVWR) of less than 8,000 pounds may not cause or allow the motor vehicle, when it is not in motion, to idle for more than a total of 10 minutes within any one-hour period. If the vehicle is waiting to weigh, load, or unload cargo or freight, it may idle for up to 30 minutes within any one-hour period. Applicable areas include the counties of Cook, DuPage, Lake, Kane, McHenry, Will, Madison, St. Clair, and Monroe, and the townships of Oswego (Kendall County) and Aux Sable and Goose Lake (Grundy County, as well as any other county with more than 3 million people but outside a municipality with less than 2 million people when within 200 feet of a residential area). Exceptions apply, including those pertaining to emergency vehicles, vehicle weight, traffic, auxiliary power unit use, remote starter systems, school buses, outside temperature, and more.

(Reference 625 Illinois Compiled Statutes 5/11-1429)

State Vehicle Fuel Economy Requirements

State contracts for the purchase or lease of new passenger automobiles must require the procurement of vehicle models that, according to the most current ratings published by the U.S. Environmental Protection Agency, can achieve at least the minimum average fuel economy in miles per gallon as specified in the federal Corporate Average Fuel Economy requirements. This requirement does not apply to station wagons, vans, four-wheel drive vehicles, and emergency vehicles. Additionally, the Chief Procurement Officer may make exemptions when there is a demonstrated need for a vehicle that does not meet the minimum average fuel economy standards.

(Reference 30 Illinois Compiled Statutes 500/45-40)

Biodiesel Production Tax

A private biodiesel producer that produces less than 5,000 gallons of biodiesel annually is subject to the annual state motor fuel tax. The return and payment of taxes for a given year are due by January 20 of the following year. A private biodiesel producer that produces more than 5,000 gallons of biodiesel annually must file returns and make monthly state motor fuel tax payments. The return and payment of taxes are due by the 20th day of each calendar month for the preceding calendar month. A private biodiesel fuel producer is defined as a person who converts biomass materials into biodiesel fuel or blends biodiesel fuel exclusively for personal use and not for sale.

(Reference 35 Illinois Compiled Statutes 505/2, 505/2a, and 505/2d)

Alternative Fuel Labeling Requirement

Vehicles powered by liquefied petroleum gas or compressed natural gas (CNG) must visibly display identifying decals, as established by the National Fire Protection Association’s standards for the Storage and Handling of Liquefied Petroleum Gases and for CNG Vehicular Fuel Systems.

(Reference 625 Illinois Compiled Statutes 5/12-704.3)

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)

Biofuels Education and Promotion

State agencies, including state-supported universities and colleges, must provide links from their websites to websites containing information on ethanol and biodiesel fuels. The links must connect to websites maintained and operated by state agencies and may also include links to private websites.

(Reference 505 Illinois Compiled Statutes 150/5)

Low-Speed Vehicle Access to Roadways

Low-speed vehicles may operate on streets with posted speed limits up to 30 miles per hour (mph) if authorized by the local government. Low-speed vehicles are allowed to cross an intersection where the road or street has a posted speed limit of up to 45 mph. Low-speed vehicles may cross an intersection where the road or street has a posted speed limit of more than 45 mph if the intersection is controlled by a traffic light or a four-way stop sign. Local governments may restrict low-speed vehicle access on streets with posted speed limits of 30 mph or less if they determine that public safety may be jeopardized. A low-speed vehicles is defined as a four-wheeled motor vehicle capable of maintaining a speed of more than 20 mph, but not more than 25 mph, and conform to federal regulations under Title 49 of the U.S. Code of Federal Regulations, section 571.500.

(Reference 625 Illinois Compiled Statutes 5/1-140.7 and 5/11-1426.2)

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)

Biodiesel Definition and Specification

Biodiesel is defined as a fuel that is comprised of mono-alkyl esters of long-chain fatty acids derived from vegetable oils or animal fats and that conforms to ASTM standard D6751. All fuel consisting of at least 99% biodiesel (B99) that is sold or offered for sale must conform to ASTM standard D6751.

(Reference 815 Illinois Compiled Statutes 370/4)

Ethanol and Hydrogen Production Facility Permits

The Illinois Environmental Protection Agency (IEPA) may issue air pollution control permits through the Bureau of Air for thermochemical conversion technology facilities that are constructed and operated to demonstrate the process of applying heat to woody biomass to produce ethanol or hydrogen for use as transportation fuel. Permit applicants must perform emissions testing during the required permit period and submit the results of that testing to the IEPA within 60 days after completion.

(Reference 415 Illinois Compiled Statutes 5/39.9)

Idle Reduction Weight Exemption

A vehicle equipped with idle reduction technology may exceed the state’s gross, axle, and bridge vehicle weight limits by up to 550 pounds to compensate for the additional weight of the idle reduction technology. The additional weight may not exceed the actual weight of the idle reduction unit. The vehicle operator must carry written certification showing the weight of the technology and must be able to demonstrate or certify that the unit is fully functional.

(Reference 625 Illinois Compiled Statutes 5/15-112)

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)

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)

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)

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)

Natural Gas and Propane Vehicle Weight Exemption

A vehicle powered by natural gas or propane may exceed the state’s gross, axle, and bridge vehicle weight limits by up to 2,000 pounds. This exemption does not apply on interstate highways.

(Reference 625 Illinois Compiled Statutes 5/15-111)

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)

Alternative Fuels Tax and Reporting

Alternative fuel dealers must sell liquefied natural gas (LNG) and propane used as motor fuel in diesel gallon equivalents (DGEs). For taxation purposes, LNG and propane must be reported as DGEs and are taxed at a rate of $0.467 per DGE. One DGE is equal to 6.06 pounds (lbs.) of LNG and 6.41 lbs. of propane. Alternative fuel dealers must sell compressed natural gas (CNG) used as motor fuel in gasoline gallon equivalents (GGEs). CNG must be reported in GGEs and is taxed at a rate of $0.392 GGE. One GGE is equal to 5.66 lbs. of CNG. The motor fuels tax increases annually on July 1 by an amount equal to the percentage increase of the United States Department of Labor’s Consumer Price Index for All Urban Consumers. For current tax rates, see the Illinois Motor Tax Rates and Fees website.

(Reference 35 Illinois Compiled Statutes 505/1.8 and 505/2)

Connected and Autonomous Vehicle (CAV) Initiative

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)

Autonomous Vehicle Testing Program

The Autonomous Illinois Testing Program (Program) encourages the partnership between the State and other entities developing connected autonomous vehicle (CAV) technology and infrastructure. The Program facilitates legal testing and programs on public roads and highways, and requires that a licensed driver remains behind the wheel. The Illinois Department of Transportation will create a registration system for entities wishing to conduct safe pilots or tests of connected and autonomous vehicles and will file a report with the governor on the status of the Program each December 31 and June 30 until the program ends.

For more information, see the State of Illinois CAVs Overview report.

(Reference Executive Order 13, 2018)

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))

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)

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.

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)

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) 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.

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.

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)

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) 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 $100 million and create at least 75 new jobs within 5 years in Illinois.

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)

Electric Vehicle (EV) Charging Station Rebate

Beginning July 1, 2022, the Illinois Environmental Protection Agency (IEPA) will offer rebates to public and private entities for the installation and maintenance of 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 or lease of a new or pre-owned EV. Rebates amounts are available according to the following schedule:

IEPA also offers rebates of $1,500 to Illinois residents for the purchase of a new electric motorcycle after July 1, 2022. 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. Additional restrictions apply. For more information, see the IEPA Climate and Equitable Jobs Act website.

(Reference Public Act 102-0662)

Electric Vehicle (EV) Road Use Revenue Study

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)

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)

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) beginning August 1, 2022, describing how the state intends to distribute NEVI funds. The submitted plan 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.

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.

Hydrogen Development Support

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)

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)