Illinois Makes Changes to EV Manufacturer Tax Credit Program
Illinois continues to sweeten the deal in an effort to attract electric vehicle makers and related companies to the state. Legislation was approved Thursday the final day of session year, which would extend up to 30 years in payroll tax credits for those who work in Illinois under the Reimagining Electric Vehicles in Illinois Act. The companies receiving the breaks can receive a state income tax credit of 75% or 100% of payroll taxes withheld from each new employee and 25% or 50% for current employees. The REV Act changes also modifies the definition of electric vehicle component part manufacturer in an effort to attract more EV parts companies, and grants the Illinois Department of Commerce and Economic Opportunity the power to determine the conditions and procedures for renewing the REV Illinois Credit.
The REV Act passed after the Climate and Equitable Jobs Act, which incentivizes EV adoption. Illinois is home to several EV-related companies. Rivian Motors manufactures electric pick-up trucks in Bloomington-Normal, Canadian-based Lion Electric Co. received a $7.9 million tax credit to build electric buses and trucks in Joliet, and TCCI in Decatur recently retooled their plant in order to make EV compressors. The Belvidere Assembly Plant near Rockford is slated to build electric versions of the Dodge Charger, Challenger and a crossover beginning in 2024. President Joe Biden has set an ambitious goal of a 50% market share for EVs by 2030, while Gov. J.B. Pritzker wants to see 1 million registered EVs on Illinois roads by that same time.