Unlocking Illinois EV Tax Credits: How to Save Big⚡

⚡ Illinois EV Tax Credits: Your 2025 Complete Guide

The shift to electric vehicles (EVs) is accelerating in the Prairie State, and the Illinois EV tax credits are leading the charge. Whether you’re a first-time EV buyer or upgrading to your next model, Illinois offers state and federal incentives that can dramatically reduce your out-of-pocket costs.

In this guide, we’ll walk you through everything you need to know to claim your Illinois EV tax credits in 2025—including eligibility, deadlines, how to apply, and ways to stack savings with federal incentives.

🚘 What Are Illinois EV Tax Credits?

Illinois offers a state rebate of up to $4,000 for eligible electric vehicle purchases. Administered by the Illinois Environmental Protection Agency (IEPA), this rebate applies to both new and used all-electric vehicles purchased from licensed Illinois dealers.

2025 Rebate Highlights:

$4,000 for new or used EVs
$1,500 for electric motorcycles
Must be purchased from an Illinois-licensed dealer
Applicant must be an Illinois resident
90-day deadline to apply after purchase
One rebate per individual every 10 years
Priority given to low-income applicants

💡 Pro Tip: Low-income applicants receive priority processing, so be sure to provide all documentation if you qualify.

🗓 2025 Application Window & Deadlines

The latest rebate cycle closed in April 2025, but future cycles are expected to open based on funding availability. Subscribe to the IEPA EV Rebate Listserv to stay informed about the next round of applications.

Funding Outlook:

FY 2025: $14 million allocated
Next expected cycle: Late 2025 or early 2026
Funds are limited and awarded on a first-come, first-served basis

🏦 Stacking Federal EV Tax Credits

In addition to Illinois EV tax credits, you may qualify for the federal Clean Vehicle Tax Credit, which provides up to:

$7,500 for new electric vehicles
$4,000 for qualifying used EVs

Federal Eligibility Criteria:

EV must meet final assembly and battery sourcing rules
Income caps apply: $150k (single), $300k (joint)
Car must be purchased from a qualified dealer
Applies to select makes/models only

💸 Combine the $4,000 Illinois rebate with the $7,500 federal credit for total savings of up to $11,500.

📋 How to Apply for Illinois EV Tax Credits

Step-by-Step Guide:

Buy an EV from an Illinois-licensed dealer
Save your paperwork (bill of sale, title, proof of residency)
Visit IEPA’s official website
Complete and submit the rebate application within 90 days
Wait for processing (up to several months depending on volume)

💵 Additional Savings Opportunities

Don’t stop with Illinois EV tax credits. Here are extra ways to save and earn from your EV purchase:

EV Charger Rebates: Check with ComEd or Ameren for charger installation rebates
Home Solar Rebates: Combine your EV with solar energy for more savings
Affiliate Offers:

🛒 Recommended EV Gear:

Level 2 EV Charger
Portable EV charging cable
Wall-mounted cable organizer

📊 Quick Comparison Table

Incentive	Amount	Eligibility	Notes
Illinois State Rebate	Up to $4,000	IL resident, dealer purchase	Apply within 90 days
Federal Tax Credit	Up to $7,500	Meets federal IRA guidelines	Claimed on tax return or POS
Motorcycle Rebate	$1,500	Same criteria as above	Electric only

📣 Final Thoughts: Act Before Illinois EV Tax Credits Shrink

Illinois EV tax credits offer an excellent opportunity to transition to electric while maximizing your savings. But act fast—the rebate will shrink over time:

July 1, 2026 – June 30, 2027: $2,000
July 1, 2028 and beyond: $1,500

Take advantage of the current $4,000 rebate while it’s still available.