Illinois Passes Tax Incentives For EV Parts Manufacturers and Automakers

Photo: Capitol News Illinois

Beyond just offering Illinois electric vehicle (EV) buyers a state rebate, Illinois is also hoping to help EV parts manufacturers and automakers come to their state with a new tax incentive made law on Tuesday.

Illinois Governor JB Pritzker signed a new tax incentive package into law on Tuesday, set to offer tax credits to EV manufacturing companies for withholding income tax as well as expenses related to training and retaining employees, according to Capitol News Illinois.

The Reimagining Electric Vehicles in Illinois (REV) Act passed almost unanimously with bipartisan support, and it offers tax credits to EV parts and battery manufacturers in addition to EV manufacturers themselves.

At the bill signing ceremony in Belvidere, Governor Pritzker said, “With this bill, we intend to attract more EV manufacturers, charging station manufacturers and automotive parts manufacturers, more than ever before, and it will help Illinois become one of the leading EV hubs in the entire nation.”

The new tax credits offer 75 to 100 percent of withheld income tax for EV manufacturers that create new jobs, also offering 25 to 50 percent for retained employees, as well as a 10 percent training credit.

Additionally, the REV Act also offers tax credits for construction wages and materials, all geared towards helping manufacturers set up camp in Illinois.