State of Illinois

Illinois Launches Updated Electric Vehicle Rebate Program

Illinois will open applications for its Electric Vehicle Rebate Program’s latest cycle on October 28, offering incentives to help residents adopt zero-emission vehicles, with newly updated eligibility rules and funding limits reflective of recent state legislation.

Recent legislative changes for the FY26 cycle prioritize low- and moderate-income applicants and aim to make the program more sustainable:

  • The maximum eligible selling price for rebated vehicles has been capped at $80,000.
  • The standard rebate amount for qualifying new or used electric vehicles is $2,000. Low-income applicants are eligible for an additional $2,000 rebate, totaling $4,000. The rebate for electric motorcycles remains $1,500 for all eligible applicants.
  • Household income cannot exceed 500% of the federal poverty line, and eligibility tables will be provided in the application materials.
  • “Low-income” criteria have been redefined, based on regional or county income limits published by the U.S. Department of Housing and Urban Development (HUD).
  • Purchasers now have 180 days after a qualifying vehicle purchase to submit an application, extended from the previous 90-day deadline.
  • The program has $14 million appropriated for FY26, and funds are expected to be depleted before the window closes. Rebates will be distributed as funding allows, and residents are encouraged to apply promptly.

Eligible vehicles must be new or used all-electric models purchased (not leased) from a dealership licensed by the Illinois Secretary of State. Only Illinois residents, who retain vehicle ownership for at least 12 months post-purchase, are eligible for the rebate. Each individual may only receive one EV rebate, and the vehicle cannot have previously received a rebate under the program.

Questions about the program can be directed to the Illinois EPA, and those interested in ongoing updates may sign up for the state’s EV Listserv.

The open application window will run until Jan. 31, 2026. Application forms and further instructions will be made available to the public starting October 14, 2025.

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