Illinois Green Energy Bill - $4,000 Rebate - Good/Bad News

[jsdugan]

It looks like Gov JB should sign the new Illinois Green Energy Bill. I looked over the couple pages about EV rebates and noticed a few things.
Full Bill Text Download: https://ilga.gov/legislation/102/SB/10200SB2408lv.htm
1. The $4,000 rebate applies to vehicles sold after July 1, 2022. (Won't this really hurt EV sales from now until July 1, 2022? I was planning on buying, but I guess I will wait.)
2. There is an article that mentions that this rebate may only be for Chicago and the surrounding area. (I'm in Central Illinois - this would be complete BS if it is not state-wide.)

A Massive Green Energy Bill Was Approved By Illinois Lawmakers. Here’s What’s In It.

Replacing coal and natural gas with renewable energy is just the beginning of what’s in a massive bill passed by Illinois lawmakers.

www.wbez.org

If the revised Federal EV tax credit passes by the end of the year, we could be looking at $11,500 in rebates for purchasing a Tesla.

Exorbitant Tax Incentives for Electric Vehicles to Be Voted on in House Ways and Means Committee - Competitive Enterprise Institute

If electric vehicles are to be judged by the amount of tax incentives needed to induce Americans to choose them, the latest provisions from the House Ways and Means Committee are a scathing indictment of the technology.

cei.org

House committee to vote on expanded EV and clean energy tax credits, including storage, hydrogen

The funding plan for Democrats' $3.5 trillion budget reconciliation would extend clean energy tax credits and create new incentives for domestic production and union labor.

www.utilitydive.com

https://www.carsdirect.com/automotive-news/green-technology/tesla-s-electric-cars-could-regain-federal-tax-credit

Thoughts? Anyone have any additional information on the topic?

Thanks,
Josh

 

[EV3_]

It appears as if anyone in Illinois can get the rebate, but it has to be within 90 days of purchase, with a purchase agreement from an Illinois source and you have to register it in Illinois, and retain residency and the vehicle for 12 months. The start date of July 1, 2022 is a bit of a puzzle.

 

[EV3_]

But then again, I have an X on order. Maybe the July 1, 2022 date will work for me after all...

 

[EV3_]

Ugh. Might just be in the Chicago area...

It offers a $4,000 rebate for electric vehicle purchases starting in 2022, but Hastings said that’s only in counties covered by the preexisting Alternative Fuels Act, meaning Cook and collar counties, because they pay into a fund from which the rebates will be paid.

 

[jsdugan]

I thought I saw something about they said they would try to help out for funding for downstate to get the rebate, but the more articles I read, I think they are saying that they could propose an additional funding (tax) for downstate to make it eligible for downstate to apply for the rebate. This should not be STATE law if it only applies to CHICAGO and the immediate surrounding counties. MAN!...

 

[TomServo]

The usual politics of Illinois, Cook County, and Chicago. The rest of the state doesn't exist.

 

[jsdugan]

The usual politics of Illinois, Cook County, and Chicago. The rest of the state doesn't exist.

Yep, it's wonderful living in Hellinois..

 

[jsdugan]

It looks like all of Illinois should be covered under the $4,000 rebate, but not until July 2022. It also seems like the bill isn't actually written in a way that all of the state would be covered, but they will "make it right" before the July 2022 deadline..
Gov. JB Pritzker Signs Massive Green Energy Bill That Requires Carbon Emission Reductions, Bails Out Two Nuclear Plants
Massive clean energy bill becomes law, investing billions in renewable, nuclear sectors

 

[thx1139]

Stupid that it doesnt start until July 2022. Lets push off purchases.

 

[jsdugan]

Stupid that it doesnt start until July 2022. Lets push off purchases.

Agreed - Won't this just tank the EV sales in Illinois until July 2022 - That's 10 months from now!

 

[MrBillMY]

It appears as if anyone in Illinois can get the rebate, but it has to be within 90 days of purchase, with a purchase agreement from an Illinois source and you have to register it in Illinois, and retain residency and the vehicle for 12 months. The start date of July 1, 2022 is a bit of a puzzle.

That July 1 start date is the start of Illinois fiscal year, but I agree it should start on January 1

 

[rescueswimmer]

Well I guess I'll have to keep pushing back delivery, then again March was my Estimated time for arrival.

 

[midwestLemur]

Yet those of us who already own EVs are stuck paying a fine every year, and there's still practically no fast chargers in western Illinois.

 

[bj23air]

I saw an article that says the rebates are restricted to customers whose average income doesn’t exceed 80 percent of the area’s median income. I couldn't find this in any other story. However if you look at part c of section 27, they do talk about low-income purchasers so this rebate may not actually be widely available.

Read More: Illinois To Offer Up $4,000 Rebates For Buying An Electric Car | Illinois To Offer Up $4,000 Rebates For Buying An Electric Car

Illinois To Offer Up $4,000 Rebates For Buying An Electric Car

I was surprised to learn that there are over 10 million electric vehicles (EVs) currently on the roads across the United States. Illinois governor JB Pritzker has a goal of adding one million EVs to Illinois' highways by 2030.

1440wrok.com

 

[jsdugan]

I saw an article that says the rebates are restricted to customers whose average income doesn’t exceed 80 percent of the area’s median income. I couldn't find this in any other story. However if you look at part c of section 27, they do talk about low-income purchasers so this rebate may not actually be widely available.

Read More: Illinois To Offer Up $4,000 Rebates For Buying An Electric Car | Illinois To Offer Up $4,000 Rebates For Buying An Electric Car

Illinois To Offer Up $4,000 Rebates For Buying An Electric Car

I was surprised to learn that there are over 10 million electric vehicles (EVs) currently on the roads across the United States. Illinois governor JB Pritzker has a goal of adding one million EVs to Illinois' highways by 2030.

1440wrok.com

This:?
27 (c) - The Agency shall make available in application materials methods for purchasers to identify as low-income. The Agency shall prioritize the review of qualified applications from low-income purchasers and award rebates to qualified purchasers accordingly.

From the article you linked - low income is defined as 80 percent of the median family income for the area. In 2019, the median household income of Sangamon County (Springfield) households was $61,912. 80% would be $49,530 household income. I don't know how household income is figured, but if you had 2 adults working at $12 minimum wage starting January 2022... ($12x40=480x52=$24,960x2=$49,920).

It looks like the rebate will apply to used vehicles as well, so that would help with low income. The only vehicle I would think that would be affordable for a low income family would be a used Nissan Leaf, and I don't think that many people would choose that little of range for their daily driver.

The Agency will PRIORTIZE the review of qualified applications, but I am not reading this as "rebates are restricted to customers whose average income doesn’t exceed 80 percent of the area’s median income." as the article states.

Also, the article talks about the $7,500 federal rebate against your tax owed, which is currently the way it is. By the time the Illinois rebate starts in almost 10 MONTHS, there will most likely be a different federal rebate program, which I am not sure will be tied to federal tax owed. Who knows...

 

[jsdugan]

Here is the latest article I could find (I posted the text since the site is not "free" - I saved you from answering advertising questions to read it.). It points out that all Illinois residents would be eligible after changes are made during the fall veto session. Sounds like the money could possibly dry up fairly quickly...

What Illinois' green energy law means for electric car buyers
Marni Pyke 9/27/2021 5:30 AM

What Illinois' green energy law means for electric car buyers

There's a lot to unpack in Illinois' new 956-page clean energy program, including $4,000 rebates for electric vehicles, subsidies for charging stations and ... some ambiguities. On Sept. 15, Gov. J.B...

www.dailyherald.com

There's a lot to unpack in Illinois' new 956-page clean energy program, including $4,000 rebates for electric vehicles, subsidies for charging stations and ... some ambiguities.
On Sept. 15, Gov. J.B. Pritzker signed the ambitious Climate and Equitable Jobs Act that aims to have 1 million electric cars on Illinois roads by 2030, convert to green energy by 2050 and grow solar power to counter climate change.
"There is no time to lose," Pritzker said at a bill signing. "Illinois is taking action in the fight to stop and even reverse the damage that's been done to our climate."
It took months to reach consensus on the energy policy and even now it's somewhat fluid. Tweaks are expected this fall to correct controversial glitches about who benefits from the rebates.

Here's what we know so far:
An electric vehicle means an electric vehicle. Unless it's an electric motorcycle, which doesn't qualify. Also out are hybrids and cars that run on fuel cells, natural gas, carrot peels, etc.
To pay for rebates, officials are relying on the Alternate Fuels Fund, a $20 annual fee levied on vehicles owned by businesses with a fleet of 10 or more cars.
It originated in 1995 to subsidize converting gas vehicles to alternative fuels such as natural gas. Significantly, the AFF only applies to Cook, DuPage, Kane, Lake, McHenry and Will counties, plus a few townships in Kendall and Grundy counties.
About 107,000 vehicles are subject to the fee, according to the Secretary of State's Office, and the fund balance sits at $5 million.
That seems insufficient to satisfy all the electric car buyers excited about a rebate, warned Chicago Area Clean Cities Group Chairman John Walton of Wheaton.
"I have no idea how this is going to work," said Walton, who thinks the emphasis on electrics is imprudent because it ignores other green technology including hydrogen-powered vehicles.
The law states rebates will last "as long as funds are available." Handouts of $4,000 begin July 1, 2022, for a four-year period. Rebates of $2,000 begin July 1, 2026, and then decrease to $1,000 on July 1, 2028.

Who gets a rebate? Applicants must live in Illinois and purchase an electric vehicle in the state. Low-income residents seeking rebates will be prioritized.
The law also indicates that only purchasers living in the metro region plus the Kendall/Grundy townships (who pay into the AFF) are eligible, a provision that's drawn criticism.
State officials say the law will be broadened to include all Illinoisans during the fall veto session.
Meanwhile, a Chevrolet Bolt EV's starting cost is $31,000; a Tesla Long-Range Model S begins at $89,990.
"Is a $4,000 rebate going to be enough to incite somebody to spend $35,000 to $40,000 on a new car? We'll have to wait and see," said Republican Sen. Don DeWitte of St. Charles, who voted against the bill.
However, "Chicago's new-car dealers are excited to be able to extend additional incentives to buyers of electric vehicles," Chicago Automobile Trade Association spokesman Mark Bilek said. Extra savings may come "with new federal incentives that are currently under consideration," he added.
Currently, there are more than 10.7 million registered vehicles in Illinois; 33,343 of them are electric cars.
The law also includes rebates of up to 80% for entities that install electric vehicle charging stations to beef up the limited network across the state.
An electric car czar position has been created to oversee the rebate and charging station programs.

 

[rexki]

Ugh. Might just be in the Chicago area...

It offers a $4,000 rebate for electric vehicle purchases starting in 2022, but Hastings said that’s only in counties covered by the preexisting Alternative Fuels Act, meaning Cook and collar counties, because they pay into a fund from which the rebates will be paid.

View attachment 709353

The law as it reads does support that position - "Covered Areas" - very poorly written and does not say in section more than "covered area" - put in Section 27 - very stealthy - WOW!

(d) The purchaser must retain ownership of the vehicle for a minimum of 12 consecutive months immediately after the vehicle purchase date. The purchaser must continue to reside in a covered area during that time frame and register the vehicle in Illinois during that time frame. Rebate recipients who fail to satisfy any of the above criteria will be required to reimburse the Agency all or part of the original rebate amount and shall notify the Agency within 60 days of failing to satisfy the criteria.

 

[rexki]

My biggest fear for Illinois and EV's are the VMT - vehicle miles traveled tax that is beta testing now for several years.

As the EV percentage increases and eats into the states revenue stream of gasoline tax when will it overcome the new $100+ ($151- old annual $17 + $3.5 fee avoided = $237.50) annual registration fee premium?

Current IL gas tax comes to: Illinois charges 77.96 cents per gallon with both federal and state taxes and fees combined.
1. State portion – $0.392 per gallon
2. rest of the Jurisdictions including Federal - $0.3876

If you take a combined MPG for Gas ICE at 17 mpg and 14,000 miles that tax breaks down as follows on 824 gallons:
1. State portion – $323
2. rest of the Jurisdictions including Federal - 319
Totals = $642

The IL legislature has already threatened us with pure State of IL $1,000/year tax to register !! Now we are State trooper pullover bounty like trucks being over weight!!

 

[Chitownm3]

Thread from last year, but wondering does anyone have any additional information on this? I've been researching and can't really find any new info and Illinois.gov site is very confusing. Thinking of pushing out my M3P order (or just cancelling) until July 1.

 

[jsdugan]

I have been wondering the same. I'm really wanting to see the change in wording about EVERYONE in Illinois will qualify, which is what gov Pritzker said after it came out, but I have yet to see anything in writing.