Vehicle Rebate Information

Eligibility

  • For the purchase of a new alternate fuel vehicle, such as a natural gas, propane, E85, electric, or hydrogen vehicle.

    Note: "Pre-owned" vehicles (any vehicle that was previously titled), and leased vehicles are not eligible for a Vehicle Rebate.

  • The vehicle must be purchased from an Illinois dealership and the purchase invoice must show that the business is located in Illinois. No out-of-state vehicle purchases are eligible. The only exception is for heavy-duty specialty vehicles (i.e., natural gas transit buses) in which an Illinois company does not sell that particular type of vehicle.
  • New E85 FFVs that have a distinct "upcharge" for the E85 engine.

    Note: Consumers that pay extra for a new E85 vehicle because of the added cost of a flexible-fuel engine can apply for a Vehicle Rebate, in lieu of a Fuel Rebate, if they choose to do so. The MSRP information must distinctly itemize the additional cost of the E85 FFV engine, separate from other add-on options. If the E85 FFV engine is listed as part of an "upgrade package" with other add-on options reflected as one overall cost amount on the MSRP sticker, the vehicle will not be eligible for a Vehicle Rebate.  Many E85 vehicles do not cost more than their gasoline-only counterparts and would not be eligible for a Vehicle Rebate.

Five Items You Need to Submit for a Vehicle Rebate

  1. A completed Vehicle Rebate Application form.
  2. A copy of the purchase invoice or bill of sale documenting the purchase of the alternate fuel vehicle.
  3. "Proof of payment." Acceptable forms of "proof of payment" include a copy of the loan installment contract, or a copy of a canceled check (front and back).
  4. A copy of the manufacturer’s MSRP window sticker or other document from the dealership that shows the MSRP window sticker information.
  5. Completed W-9 form.

Vehicle Rebate Amounts

  • For a new alternate fuel vehicle that has a conventional gasoline or diesel make and model counterpart, the amount of the rebate is 80 percent of the incremental cost of the alternate fuel vehicle versus its conventional counterpart (same make, model, and model year) up to $4,000.
  • For a new alternate fuel vehicle that does not have a conventional make and model counterpart, but does have an increased cost due to the alternate fuel engine/motor and fuel system versus a comparable conventional engine/motor, the amount of the rebate is 10 percent of the base retail price of the vehicle as reflected on the MSRP ("base MSRP"), not including add-on equipment options, up to $4,000. At the current time, the only vehicles in which the 10 percent of the base MSRP is used to establish the rebate amount are electric vehicles.

Application Deadline for a Vehicle Rebate

Vehicle Rebate applications are due 12 months after the date of vehicle purchase. The postmark date must be by the last day of the twelfth month after the purchase date (i.e., a vehicle purchased on August 23, 2013 must have its application postmarked by August 31, 2014).

Timing of Vehicle Rebate Issuances

The Illinois EPA processes Vehicle Rebate applications twice per year. Applications that are postmarked February 1 – June 30 will be processed starting July 1. Applications postmarked July 1 – January 31 will be processed starting February 1. Please note that, due to the significant number of applications we receive and the need to request additional information from some applicants, it may take up to five months after the processing starting date to complete the review and rebate issuances for all eligible applications. In addition, the timing of rebate issuances is dependent on funding availability in the Alternate Fuels Fund.