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 will deposit all fees into the Alternate Fuels Fund. (Reference 415 Illinois Compiled Statutes 120/35)

Biofuels Tax Exemption

Through December 31, 2018, 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 to 80% of the proceeds from the sale of 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. Taxes will apply to 100% of the proceeds from the sale of E10 and B1-10 made after December 31, 2018.

Through December 31, 2023, 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 Statutes 120/2-10, 105/3-10, and 105/3-44)

All-Electric Vehicle (EV) Registration Fee Reduction

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. For more information, including the application documentation, see the Electric Vehicle License Plate Guide website. (Reference Senate Bill 1939, 2019, and 625 Illinois Compiled Statutes 5/3-805)

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 500 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)

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)

All-Electric Vehicle (EV) Emissions Inspection Exemption

EVs 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)