Illinois offers up to $4,000 for new or used electric cars
The application cycle remains open through Dec. 31, but funding could run out sooner. Hybrids, leased vehicles and out-of-state purchases do not qualify.
ILLINOIS — Illinois residents who buy a new or used all-electric car may apply for a state rebate. The payment will be either $2,000 or $4,000. Household income sets the amount.
The program also offers $1,500 for an eligible electric motorcycle. However, an application does not guarantee a payment. Illinois has up to $14 million for the current cycle. Therefore, rebates will stop when the money runs out.
Applications must have a postmark dated between Aug. 1 and Dec. 31, 2026. In addition, buyers must mail the forms within 180 days of the vehicle purchase.
- Low-income applicant: $4,000.
- Other eligible applicant: $2,000.
- All-electric motorcycle: $1,500.
- Maximum vehicle price: $80,000.
- Cycle closes: Dec. 31, 2026.
- Application method: Physical mail only.
Household income sets the rebate at $4,000 or $2,000
The standard rebate for an eligible electric car is $2,000. However, low-income applicants may receive another $2,000. Their total rebate would be $4,000.
Illinois uses county income levels to define a low-income applicant. A household must have income at or below 80% of its county’s median income. As a result, the limit changes by county and household size.
All applicants also face a general income cap. For this cycle, the main limits are:
| Household size | Maximum annual income to apply |
|---|---|
| 1 person | $79,800 |
| 2 people | $108,200 |
| 3 people | $136,600 |
| 4 people | $165,000 |
These figures only set the general income cap. They do not guarantee the $4,000 rebate. Instead, Illinois uses a separate county table to decide who meets the low-income level.
Household income includes the applicant and certain related adults at the same address. Also, Illinois EPA may later ask for tax records to check the income information.
Meanwhile, Illinois residents may qualify for other cost-saving programs. The state also offers electricity and natural gas discounts ranging from 5% to 84%.
Used electric cars qualify, but plug-in hybrids do not
Both new and used vehicles may qualify. However, the car must run only on electricity. It must also be legal to drive on public roads and interstate highways.
Plug-in hybrids do not qualify. Cars with a gasoline-powered backup engine are also excluded. In addition, the program does not cover golf carts or off-road vehicles. Models with a top speed below 45 mph are not eligible either.
The vehicle’s base price cannot exceed $80,000. However, taxes and registration fees do not count toward that limit. Some add-on products may also be excluded when the dealer lists them separately.
The buyer must purchase the car from a dealer licensed in Illinois. Therefore, purchases from out-of-state dealers do not qualify. Vehicles delivered outside Illinois are also excluded.
Leased cars are not eligible. However, buyers may use a loan to finance the purchase.
A used car cannot have received a previous rebate through this program. Illinois EPA checks the vehicle identification number, or VIN, to confirm its rebate history.
Buyers must keep the car registered in Illinois for 12 months
The applicant must live in Illinois when buying the car. The person must still live in the state when Illinois issues the rebate.
In addition, the buyer must keep the car for at least 12 months after the purchase. The vehicle must stay registered in Illinois during that period.
Only individuals can receive a rebate. Therefore, businesses, government agencies, organizations and trusts cannot apply.
Applicants also face a 10-year limit. A person cannot receive the rebate if the program paid them another one during the previous 10 years.
Mailed applications require four types of documents
Illinois only accepts paper applications by mail. Email, fax and hand delivery are not accepted.
The application package must include:
- A copy of the signed purchase agreement, bill of sale or invoice from an Illinois dealer.
- Proof of payment or loan papers that cover the amount owed to the dealer.
- A copy of the Illinois vehicle registration or temporary permit.
- An IRS W-9 or W-8 form, as needed.
In addition, a dealer representative must complete and sign part of the application. A vehicle title does not replace the registration document.
The application, county income limits and Illinois electric vehicle rebate instructions are available through Illinois EPA.
Applications sent through the U.S. Postal Service go to:
Illinois Environmental Protection AgencyElectric Vehicle Rebate Program MC #40
P.O. Box 19276
Springfield, Illinois 62794-9276
Illinois will review low-income applications first
Illinois EPA reviews low-income applications first. After that, it will consider other applications by postmark date. Available funding will also affect those decisions.
As a result, other applicants may wait until the cycle closes for a decision. Illinois will send approved rebates as paper checks through the Office of Comptroller.
The program does not reserve money before someone buys a vehicle. Also, unpaid applications do not move into a future funding cycle.
Finally, the current application cycle closes Dec. 31, 2026. Each buyer also has a 180-day deadline after signing the purchase agreement. Illinois EPA accepts questions at [email protected].
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