Drive Electric and Save: A Guide to Illinois' Electric Vehicle Rebate Program in 2025

If you're thinking about switching to an electric vehicle (EV) but the price tag is holding you back, there's good news. Illinois residents can save thousands on their EV purchase through the 2025 Illinois electric vehicle rebate program. But timing matters. The application cycle for the Illinois EPA electric car rebate will open on January 21, 2025, and it will close on April 30, 2025. 

You’ll want to act fast, funding is limited and applications are processed in the order they are received, with lower-income applicants receiving priority. Last year funding ran out weeks after it opened.

This guide will walk you through everything you need to know about accessing the 2025 Illinois EV rebate program and maximizing your savings with the Illinois electric car rebate program and available incentives for EV cars.

Understanding Illinois' Commitment to Clean Transportation

The Illinois Electric Vehicle Rebate Program is part of a broader clean energy initiative launched through the Climate and Equitable Jobs Act (CEJA) in 2021. Transportation is a key focus area of this landmark legislation, with the aim to put 1 million EVs on Illinois roads by 2030.

Available Rebates and Savings

The Illinois electric vehicle rebate program offers a straightforward rebate structure: $4,000 for the purchase of a new or used all-electric vehicle.

Eligibility Requirements

To qualify for the rebate, you must:

• Live in Illinois at the time of vehicle purchase and when the rebate is issued.
• Purchase from a licensed Illinois dealer.
• Keep the vehicle for at least 12 consecutive months after purchase.
• Ensure the specific vehicle hasn't previously received an Illinois EV rebate.
• Apply within 90 days of purchase.

Note: Leased vehicles currently do not qualify for the Illinois electric vehicle rebate program.

This state rebate can be combined with other incentives. However, federal tax credits vary significantly based on factors such as vehicle price, battery capacity, and manufacturing location. Check current federal incentives at fueleconomy.gov before making your purchase decision.

Learn the benefits of workplace EV charging here.

Application Process 

Required documentation includes:

1. Completed application form from the Illinois EPA website
2. Proof of purchase
3. Illinois vehicle registration
4. IRS Form W-9 (or W-8BEN for non-residents)
5. Proof of residence

Tips for a Successful Application:

It is critical to follow the rebate application instructions exactly as outlined. Even small errors—such as missing documents, incorrect forms, or incomplete information—can result in application denial

• Double-check all documentation before submission.
• Keep copies of everything you submit.
• Consider certified mail for tracking.
• Submit early to avoid funding shortages.

Key Dates

You are eligible for this program if you buy an EV within 90 days of the application cycle opening on January 21, 2025. That means you are in luck and are eligible to submit a rebate application for purchases on or after October 23, 2024.

• Earliest Purchase Date: October 23, 2024
• Application Cycle Opens: January 21, 2025
• Application Deadline: April 30, 2025

To maximize your chances of securing a rebate, submit your application as early as possible. Rebates are issued first to low-income applicants, then to others in postmark-date order. If funds run out, remaining applicants will receive denial letters or insufficient-funds notifications.

Year-on-Year Program Performance and Impact

The program has proven to be very popular. In 2023 around 34,000 EVs were newly registered. So 1 in 7 people were able to take advantage of the Illinois EV rebate.

‍

With funding increased back to $14 million and more EV models hitting the market, we anticipate this program is going to have over 6,000 applications in 2025.

Future Rebate Opportunities

If you miss this year’s application window, don’t worry—the Illinois EV rebate program runs through 2028. However, rebate amounts will gradually decrease over time:

‍

Common Questions and Tips

How Will I Receive My Rebate?

• Disbursement comes as a check from the Illinois Finance Office (also called the Office of Comptroller).

When Will I Receive My Rebate?

• If deemed eligible, expect a check several weeks after the rebate application period closes.

Is There an Income Limit for Eligibility?

• No. However, the Illinois EPA has begun to prioritize low-income applicants. Low income is defined as household income not exceeding 80% of the state median income. In 2024, a family of four in Illinois qualifies if their annual income is $79,500 or less.
• What to Do If Your Application Is Denied
• Review the Denial Letter: Understand the reason for denial—whether it's incomplete documentation, ineligibility, or lack of funds and reapply if possible.

‍

Also read: Why your business should invest in EV charging now.

‍

Your Next Steps: The First-Time EV Buyer's Checklist

The road to electric is getting easier every year - more charging stations, better battery range, and increasing model choices. Getting that $4,000 rebate is just one piece of your EV-buying puzzle. Here's a few more items for your checklist to keep you on track:

🔲 Research the Come EV charger rebate and Federal tax credits

🔲 Compare EV models in your price range (and test drive!) 

🔲 Think through your day-to-day driving patterns and plan charging logistics

‍