Illinois offers rebates for electric vehicle purchases, but many find themselves ineligible
CHICAGO (CBS) -- AAA reports the average price per gallon is down 25 cents compared with a month ago, but lots of people want to avoid gas prices entirely – by going electric.
The State of Illinois offers thousands of dollars for drivers who buy electric vehicles. But the incentive program is tricky – leaving many buyers falling through the cracks.
As CBS 2's Tara Molina reported Thursday, there are more than 88,000 electric vehicles registered in Illinois. Gov. JB Pritzker has said his goal is to get that number to a million in the next seven years.
But right now, only a few thousand people can take advantage of the state's incentive program.
Tom Mockaitis - a history professor at DePaul University, author, and opinion contributor to The Hill - is one of the people who cannot. He said he owns an electric vehicle for a reason nonetheless.
"We're committed to trying to be greener," he said, "and I think of this because of my grandchildren – you know, the kind of world I want to leave them."
Saving on gas doesn't hurt either, Mockaitis said. And those feelings wouldn't change had he been able to participate in the state's incentive program and get a $4,000 rebate - but it sure would've been nice.
"I hope they fix it so everybody else benefits," Mockaitis said.
So, why couldn't Mockaitis take part? The reason is loopholes in the way the law is written - only allowing buyers who purchase within certain windows of time to apply. So depending on when you bought your car, you could be out of luck – like Mockaitis.
"It's a good program," he said. "But like any new program, you know, they've got to get some of the bugs out of it. That's all."
Mockaitis is not alone.
"Legislators are hearing from their constituents about how they just missed a rebate, or what have you," said Illinois state Sen. Sara Feigenholtz (D-Chicago), "so there will be a lot of discussion, because we do want to incentivize the purchase of these vehicles."
State Senator Sara Feigenholtz says state lawmakers will have to work with Governor Pritzker and the budget office to take a closer look…
"I think we're going to have to go back and revisit how we do this," Feigenholtz said.
If you do qualify, and you're in the state's application window, you're still going after a limited pool of incentive money.
Last year, $20 million was up for grabs for almost 5,000 cars. But next fiscal year, Illinois is offering $4,000 per car, and budgeting $12 million a year.
How does our program stack up against those of other states?
Colorado is the most generous – offering up to $7,500 effective New Year's Day 2024 with no budget cap.
California offers up to $12,000, and spends $215 million a year. Oregon offers rebates of up to $7,600 Massachusetts offers rebates of up to $5,000, and budgets $50 million a year. Connecticut offers up to $4,250 for eligible new-battery electric cars, and $9,500 for fuel cell electric vehicles. New York state offers $2,000 rebates, with no caps.
"It's just something they need to fix to be fair to everybody else," Mockaitis said of the Illinois program. "Going forward, what I hope for everybody else's sake, they just fix this."
A spokesperson for the Governor's office said popularity of the program is proof it works, but they do not have unlimited funds:
"The overwhelming popularity of the program means incentives work, but unfortunately, any program of this magnitude needs to fit within the scope of a balanced state budget and we do not have unlimited funds. The Governor was pleased to see the federal government follow Illinois' lead and pass their own package of incentives for electric vehicles. Pairing state incentives with federal programs will help more consumers be able to afford an electric vehicle and reach our goals."
The Governor's office didn't say if there are plans to push to increase those funds moving forward.
The Illinois Environmental Protection Agency provided answers to our questions about why the Illinois EV rebate program is only open during certain windows of time.
Q: If the state has a goal of getting a million EVs on the road by 2030, why is the incentive program not active at all times?
A: As an incentive program, there is a limited amount of funding available. For FY24 (current fiscal year), Illinois EPA was appropriated $12 million dollars by the General Assembly for the EV Rebate Program, which will cover approximately 3,000 rebates. There simply isn't sufficient funding to have the program open at all times. EV rebate cycles are subject to the availability of funds.
Q: Why are there windows when the program is closed?
A: State law requires Illinois EPA to prioritize low-income applicants. Funding cycles close to provide a cut off of when low-income applications can be received so non-low-income applications can then be processed.
Q: Also, this latest window closed after just 12 days, which has frustrated buyers.
A: This is not correct. The current funding cycle is still open until January 31, 2024. A notice was posted to the program webpage on November 13 that states:
Q: The current number of EV Rebate Program applications that have been received by the Illinois EPA has surpassed the amount of available Fiscal Year 2024 funding appropriated by the General Assembly ($12 million). As specified in the law, program rules, IEPA EV Rebate Program website, and FAQ, rebate applications are subject to the availability of funds. Applicants that qualify as "Low-Income" per the program guidelines will continue to be prioritized for rebate issuance.
This notice was posted and distributed to make potential buyers, car dealerships, and other interested parties aware that the program was already oversubscribed and that chances of receiving a rebate for applications submitted after that date were greatly reduced.
Q: Finally, how many of those taking part in the program qualify for the low-income status? It would seem like most low income folks could not afford a new EV, as they tend to have a higher sticker price. How many low income applicants have gotten the rebate so far this year? How many rebates have been issued in total?
A: As you noted, this is an incentive program, and state law requires low-income applicants be prioritized. As of 12/11/23, Illinois EPA has received 525 low-income applications. Over 140 have already been paid, and many additional low-income applications are in the process of being paid, though I do not have an amount at the moment. As of 12/11/23, we have received 3,964 non-low-income applications. This information is regularly updated on the program webpage.
In comparison, in FY23, Illinois EPA received 754 low-income applications and 535 of those were approves. A total of 6,915 non-low-income applications were received last fiscal year, and 4,337 were approved before funding was exhausted.
The Illinois EPA issued this addendum, further explaining the program:
"As noted previously, the funding cycle for all applicants remains open until January 31, 2024. Low-income applicants are prioritized in accordance with state law. The notice was posted and distributed to make potential buyers, car dealerships, and other interested parties aware that the program was already oversubscribed and that chances of receiving a rebate for applications submitted after that date were greatly reduced. For clarification, this is not a 'reimbursement' as you suggested. The program offers rebate for qualified applicants, subject to the availability of funds.
"While we know incentive programs, like the Illinois EV Rebate Program, are aiding in the adoption of EV's in Illinois, we also know there are other factors motivating residents to purchase EVs in Illinois. As of November 2023 (the latest data) there are 88,632 EVs registered in the state of Illinois. Last year at this time, there were 55,333 EVs on the road, so we've added 33,299 in 2023, which is approximately 60% growth year over year. Through same time period Nov 2021 – Nov 2022, there were 17,829 EVs added to the road, or about 50% growth – so things in 2023 definitely have been increasing.
"As noted previously, Illinois issued 4,872 rebates in FY23 (July 1, 2022-June 30, 2023) and has funding for approximately 3,000 total rebates in FY24, a small percentage of the vehicles being purchased.
"As many of the federal and state programs for charging come online through 2024 and early 2025, including the federal NEVI program and the Illinois Charging Infrastructure and VW-related grants, we expect the demand level to increase proportionally.
"You may be aware that the Rebate amount was established under the Climate and Equitable Jobs Act (CEJA) and is limited by the funds appropriated by the General Assembly every year. Through CEJA, the rebate gradations lessen to $2,000 in 2026 and $1,000 in 2028.
"In State Fiscal Year 2023, the Illinois EPA had an appropriation of up to $20 million for the EV Rebate Program, subject to the availability of funds. Yes, The Illinois General Assembly has appropriated up to $12 million for EV rebates for the current State Fiscal Year, subject to the availability of funds. "