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Gov. Pritzker Signs the Reimagining Electric Vehicles in Illinois Act

Press Release - Tuesday, November 16, 2021

Gov Sets Course to Make Illinois the Best State in the Nation to Drive and Manufacture an Electric Vehicle

Incentivizes Electric Vehicle Manufacturers to Move to or Expand in Illinois

ROCKFORD— Building on Illinois' role as a leading state in the burgeoning electric vehicle (EV) manufacturing industry, Governor JB Pritzker today signed the Reimagining Electric Vehicles in Illinois Act into law, incentivizing EV production across Illinois. The new incentives benefit the state's entire EV ecosystem, by helping to build facilities, train Illinois graduates, and create thousands of jobs. This is a major step towards one of the administration's bold benchmarks: putting one million electric vehicles on the road by 2030.

Following the state's historic Climate and Equitable Jobs Act, the Reimagining Electric Vehicles in Illinois Act (REV) sets out to make Illinois a hub for EV and auto battery production. More specifically, the legislation includes tax credits for income tax withholding, training costs, tax exemptions, and investment credits, as well as allowing local jurisdictions to abate property taxes for EV projects. EVs include vehicles exclusively powered by electricity and include electric cars and motorcycles. Crucially, the legislation prioritizes underserved communities and communities impacted by energy transitions.

"By signing the Reimagining Electric Vehicles in Illinois Act into law, we're making clear to the world that Illinois is open for business and on track to be the best place in the nation to manufacture and drive an electric vehicle," said Governor JB Pritzker. "It's no secret that transportation is the leading source of climate pollution - so we're incentivizing green economic development. It's good for business - and it's the right thing to do. The Reimagining Electric Vehicles Act is about acknowledging there doesn't need to be a trade-off between a cleaner environment and more jobs. We can do both, and today we take a giant leap forward in that quest."

The credits range from 75 percent to 100 percent of income tax withheld for creating new jobs or 25 percent to 50 percent for retained employees, depending on various factors such as company location.

"Under Governor Pritzker's leadership, Illinois is taking bold action to address climate change and to make sure Illinoisans are prepared to capture the economic benefits of the rapidly growing electric vehicle industry," said DCEO Acting Director Sylvia Garcia. "The REV Illinois Program marks a major milestone for Illinois and will support the growth of our advanced manufacturing economy, expand skills training for workers, and drive new investment to areas of need so that more residents can be a part of the work to electrify and modernize our state."

Additional enhancements include a 20 percent price preference for EVs built in Illinois for state procurements and the creation of an EV Permitting Task Force to ensure permits for EV projects are streamlined. The legislation builds upon the administration's commitment to improving the state's infrastructure, by permitting the Illinois Department of Transportation (IDOT) to prioritize road projects that directly assist with locating an EV facility and the project's infrastructure needs.

"Under Governor Pritzker, IDOT is not just making critical improvements to the state's infrastructure, but boldly reimagining how transportation looks in the 21st century," said IDOT Secretary Omer Osman. "As we work to rebuild Illinois, the governor today is providing the framework going forward to make sure we are investing resources to keep us a leader in supporting clean energy while creating economic opportunity in new and exciting ways."                                                                                              

"We are grateful to Gov. JB Pritzker, Sen. Stadelman, and Rep. Vella for championing the Reimagining Electric Vehicles Act. Reducing emissions from the transportation sector will require new zero-emissions electric vehicles of all types, and we are excited to see that manufacturing happen right here in Illinois," said Jen Walling, Executive Director, Illinois Environmental Council. "This act builds on the great work Illinois has done through the Climate and Equitable Jobs Act, creating and maintaining jobs in clean transportation and prioritizing underserved communities, including the workforce hubs and coal plant communities included in CEJA."

"This law builds on our state's proud history of auto manufacturing and positions Illinois to become a national leader in electric vehicle and battery production. These incentives will encourage economic investment, allowing us to keep and grow good-paying manufacturing jobs in an exciting and flourishing industry," said Mark Denzler, President & CEO of the Illinois Manufacturers' Association. "We thank Gov. JB Pritzker and lawmakers for partnering with us in a bipartisan manner to embrace innovation and transformation, which are key to rebuilding our state's economy following massive disruptions caused by the pandemic."

"Rivian congratulates Governor Pritzker and the Illinois General Assembly on the passage of the Reimagining Electric Vehicle Act," said James Chen, Vice President of Public Policy and Chief Regulatory Counsel at Rivian. "This legislation will promote Illinois as a state that welcomes and supports the entire electric vehicle manufacturing ecosystem, bringing increased investment and clean energy jobs to the state as we tackle the challenges of climate change and fostering cleaner air."

The legislation not only helps promote new business in Illinois but creates pathways to opportunity for historically underserved communities. REV incentivizes employers to locate new facilities in communities that have been historically left out of investment and prioritizes equity through vendor diversity reporting, diverse hiring plans, and workforce diversity reporting.

"This gives Illinois the ability to compete on a global stage to bring next generation electric vehicle jobs and investments to communities across our great state," said Senate President Don Harmon (D-Oak Park).

"With the Reimagine Electric Vehicles legislation, Illinois is a leader in electric vehicle manufacturing as well as a clean energy economy," said House Speaker Emanuel "Chris" Welch (D-Westchester). "In addition to fighting the urgent and dire issue of climate change, we are ensuring that Illinois becomes a hub for the economic benefits of a green energy future."

"With new federal and state goals and changing consumer priorities, automakers are looking to rapidly scale the production of electric vehicles in the United States," said State Senator Steve Stadelman (D-Rockford). "We have a narrow, critical window now to stimulate EV investment across Illinois and preserve and create thousands of jobs at the Stellantis plant in Belvidere."

"With more automakers beginning to transition towards creating electric vehicles, there has never been a better time to take advantage of this trend and make Illinois a nationwide leader in electric vehicle manufacturing," said State Representative Dave Vella (D-Rockford). "Not only does this legislation give companies the resources they need to make and keep their manufacturing plants in Illinois, it also ensures that we are creating thousands of high-paying jobs to the Rockford area and potentially bringing billions of dollars into our economy."

"This legislation will make Illinois more competitive, and when Illinois is more competitive, that means more jobs, and all of Illinois wins," said Leader Dan Brady (R-Bloomington).

"The talented and capable workforce of Illinois is ready to demonstrate that we should be the epic center of electric vehicle manufacturing for the world," said Assistant Majority Leader Marcus C. Evans, Jr. (D-Chicago). "Governor Pritzker and the legislature through the passage of this bill is proudly abandoning talk and taking real action to facilitate jobs and opportunities for our communities."

"With the Reimagining Electric Vehicles Act, we are laying the groundwork to bring Illinois even further ahead in the clean energy economy," said State Senator Cristina Castro (D-Elgin). "From job creation to cutting back on harmful pollution from vehicles, this law will be a decisive step forward for our state."

"The electric transportation industry has the potential to grow into a booming field," said State Senator Doris Turner (D-Springfield). "With the REV Act, we're encouraging companies to set up shop in Illinois, and also providing incentives for electric transportation companies to bring good-paying jobs to the state. I am looking forward to seeing new developments in the central and southern parts of Illinois and will remain committed to ensuring that these jobs become available."

"Illinois is moving toward a sustainable economy—one that meets the needs of job creation and clean energy for our residents," said State Senator Napoleon Harris, III (D-Harvey). "Implementing this policy will not only help our state meet its clean energy goals, but it will also promote the creation of family-sustaining jobs."

"The REV Act invests in both job creators and working people across Illinois to make us a nationwide leader in the electric vehicle industry," said State Senator Ann Gillespie (D-Arlington Heights). "Covering training costs for new hires and protecting living wages for current employees will provide a foundation for working people to build long-term careers in a growing industry."

"As Illinois continues to secure its title as national leader on fighting climate change, we're also paving the way to become a hub for the electric transportation industry,"said State Senator Mattie Hunter (D-Chicago). "I'm excited to see our state take a step in the right direction in this clean energy economy by encouraging electric vehicle manufacturers to grow and bring good-paying jobs to our communities."

"Along with a comprehensive package of beneficial tools for the electric vehicle industry, I'm pleased we were able to negotiate some pro-business reforms that will benefit not just those involved with the auto industry, but across all industries," said State Senator Donald DeWitte (R-St. Charles). "By allowing businesses to carry forward any net operating losses for 20 taxable years, these negotiated tax law changes will give all businesses in Illinois more flexibility to deal with the economic realities of the past 18 months and beyond."

"Illinois is on the precipice of being the electric vehicle hub of the Midwest and the country," said State Representative Michael Zalewski (D-Riverside). "I was proud to co-sponsor the REV tax credit to create a new generation of jobs for Illinoisans. I congratulate Representative Vella and Senator Stadelman for this accomplishment and thank Governor Pritzker and his team for their leadership."

With Illinois' nation-leading climate legislation and REV now signed into law, the administration continues to recruit and support businesses that will create thousands of  jobs in communities across Illinois. Earlier this year, Governor Pritzker announced the creation of two new Manufacturing Training Academies in Illinois, including a first-of-its-kind Electric Vehicle-Energy Storage Manufacturing Training Academy which specializes in training the Illinois workforce for careers in the EV industry. The administration continues to invite EV producers, EV specific parts manufacturers and charging station manufacturers to set up in Illinois and join companies such as Rivian and Lion Electric.

To learn more about the REV Illinois Program, please visit the Department of Commerce and Economic Opportunity(DCEO) website here. Interested applicants may contact DCEO Deputy Director of Business Development Sean Pritchard at Sean.Pritchard@illinois.gov.

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