Residents in Illinois will be able to score a $4,000 rebate once again in 2025.
The rebate is available to those who purchase an electric vehicle, and the state’s Environmental Protection Agency also approved a $1,500 rebate for electric motorcycles. Altogether, the program cost $14 million and will begin accepting applications in January 2025.
Next year’s rebate comes after Illinois gave out 3,000 rebates from a $12 million fund this year. The state received roughly 5,500 applications this year but saw close to 8,000 in 2023. That year, $19 million was available.
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“It’s fair to say the return of this rebate could have more than an eco-friendly motivation behind it,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.
“The additional rebate certainly will encourage Illinois residents to consider purchasing an electric vehicle to better the environment and reduce their fuel and maintenance costs. At the same point, it could also motivate residents to just buy a car in general.”
Vehicles are one of the high-price categories of products hit hardest by higher interest rates.
“Bringing back an additional rebate could make some in the market for a new vehicle take the leap and make a purchase, even if financing isn’t as attractive as it was in past years,” Beene said.
State residents must submit applications within 90 days of purchasing the vehicle.
To qualify, you must be a state resident and buy the car from a dealer in the statelicensed by the Illinois secretary of state.
The vehicle also cannot have been used for a different rebate, and you’ll need to keep ownership of the car for at least a year after the purchase. New and used vehicles are eligible. The state is giving priority to low-income residents.
The state’s move to incentivize clean energy comes after the federal government set up tax credits for EV purchases worth up to $7,500. Under those rules, Americans qualify for the $7,500 tax credit if they buy a new vehicle and $4,000 for a used car under $25,000.
“This current electric vehicle rebate, supported by $14 million in funding, is likely to benefit residents who are in the market for an electric vehicle, making it more affordable and encouraging the adoption of cleaner energy,” Kevin Thompson, a finance expert and founder and CEO of 9i Capital Group, told Newsweek.
Michael Ryan, a finance expert and founder of michaelryanmoney.com, said many families will benefit, as $4,000 can cover several months of rent or groceries.
“It might allow someone to finally fix that broken-down car or start an emergency fund,” Ryan told Newsweek. “The idea is that as residents spend, local businesses will need to create new jobs, and it all leads to economic growth. All while allowing families to improve their financial and overall quality of life.”
