Illinois Is Offering a $4,000 Rebate on the Purchase of an EV, Beginning January 21

Chicago’s WGN9 reported that Illinois is launching a $4,000 rebate program for electric vehicles (EVs) beginning on January 21, 2025. The $14 million program, funded by the Illinois Climate and Equitable Jobs Act, will be available until April 30, 2025, or until the funds are depleted. Illinois residents who purchase a new or used electric car, truck, or SUV from a licensed dealer in Illinois can apply for a $4,000 rebate. Electric motorcycles are eligible for a $1,500 rebate.

To qualify, applicants must be residents of Illinois at the time of purchase and when the rebate is issued. The vehicle must be purchased from a licensed dealer in Illinois, and rental or leased vehicles are not eligible. The rebate application must be submitted within 90 days of the vehicle purchase. Only individual buyers can apply for the rebate—businesses, government entities, and other organizations are excluded. Additionally, the rebate cannot exceed the purchase price of the vehicle, and the purchaser must retain ownership of the vehicle for at least 12 months after the purchase.

Applications must be postmarked within 90 days of purchasing the vehicle, and the program will run until either April 30 or until the funding is used up. The Illinois Environmental Protection Agency will oversee the program, and interested buyers can check eligibility details on the program’s official website.

The Illinois Environmental Protection Agency (IEPA) has stated that it will prioritize low-income applicants for the state’s new electric vehicle rebate program. Last year, the IEPA awarded 3,000 rebates from a $12 million fund, out of 5,587 applications. In 2023, the program saw a rise in applications, with 7,669 submissions, and 4,872 rebates were granted from a $19 million fund.

In addition to the state rebate, the federal government offers tax credits for electric vehicles. These credits can be as much as $7,500 for a new electric vehicle and up to $4,000 for a used EV. The amount of the federal tax credit depends on the individual’s tax liability.

There has never been a more exciting time to buy an electric vehicle (EV), with a wider selection of options than ever before. However, many U.S. consumers may not be fully aware of the electric vehicle tax credits available at the state level. See electrek’s 2025 Electric vehicle tax credits and rebates available in the US, sorted by state.

These state-level rebates or tax credits vary by location and can significantly reduce the cost of purchasing an EV. Some states, like Illinois, provide direct rebates for EV purchases, while others may offer tax credits, reduced registration fees, or even incentives for home charging equipment installation. It’s important for consumers to research their specific state’s offerings, as these incentives can help make owning an electric vehicle more cost-effective. With both federal and state incentives, along with the growing availability of EV models, there has never been a better time to consider making the switch to electric.