$4,000 IL Rebate for OEM EVs

[todd.dore]

All -

I got an email back from Mary Cruse at the State of IL - she's our rebate advocate!  Here's the scoop:
1.  EV Conversions qualify - as always, 80% of the conversion cost up to $4k per vehicle
2.  OEM EVs qualify - for those cars where no gas version exists (Tesla, Nissan Leaf), the reimbursement is 10% of the MSRP base model (no options) car, up to $4,000
3.  PHEVs qualify ==> like the Chevy Volt!  Same rebate rules as OEM EVs above.
4.  As always, applications are accepted in the summer, rebates are first-come-first-served, and the $$ every year seems to run out quickly.
5.  The rebates are in addition to any federal tax credits!

Please let me know if you have any questions.

Thanks!

Todd

[chuck.carrington]

If the State will not give rebates if a gas version exists then you will not be able to get a rebate if you buy a Ford Focus EV because they will still offer a gas version. This does not make sense as I thought that the rebate was to try and get more EVs on the road not nesesarily more Teslas and Leafs (or is that Leaves).

Chuck

[dave.hostert]

Chuck, the Focus should be fine.  Form the Il website:
Electric vehicles

Electric vehicles that are eligible for this program are those that are predominantly powered by and primarily “refueled” with electricity and do not have restrictions confining them to operate only on certain types of streets or roads.  Electricity must be the primary fuel that powers the vehicle, and not used as a supplemental or secondary fuel source.
Electric vehicles that qualify for the “Vehicle Rebate” in Section 2 below include the following:  Nissan Leaf, Chevrolet Volt, Mitsubishi i-MiEV, and Ford Focus Electric.  To inquire about the eligibility status of other types of electric vehicles not listed, please call us at (217) 557-1441. 

[todd.dore]

To reiterate Dave's statement, if a gas version exists (i.e., Ford Focus), then the rebate is 80% of the cost increase to go electric, capped at $4k.  The Ford Focus EV will need to itemize the additional cost on the invoice for producing an electric car, which presumably they would do.  If the sticker doesn't show this, then you could get it out of the dealer.

Does anyone know when the Ford Focus EV will be released in IL?

[richard.miller]

I've preordered a Brammo Empulse motorcycle but I am not sure what rebates will be available when I will be able to take delivery. From what I hear the Illinois rebate is not available for motorcycles since 12/31/2011 and the federal tax rebate is not available to any vehicle. Does anyone know the facts on these rebates and when and if they may be reinstated.
    Rick

[rich.carroll]

I don't believe the federal tax rebate has been renewed.  Check with your US Congressperson to see if they are aware of anything that may be introduced to extend this.

As to the Illinois rebate, those come through the Illinois Green Fleets program. See: http://www.illinoisgreenfleets.org/fuels/index.html  I don't know if they have extended the Vehicle Rebate (Section 2) to motorcycles, but I can tell you exactly who would know. Check with Darwin Burkhart, Illinois Environmental Protection Agency, (217) 557-1441
darwin.burkhart@illinois.gov

Perhaps Samantha Bingham, the Coordinator of Chicago Area Clean Cities Program, might have ideas.  You could try calling her at: 312-744-8096 or email:
samantha.bingham@cityofchicago.org  or look through their web site at: www.chicagocleancities.org

Rich

[todd.dore]

Wait a min - if I buy the Tesla at the end of this year, I don't get $7,500 back from the feds?

[rich.carroll]

Wait a min - if I buy the Tesla at the end of this year, I don't get $7,500 back from the feds?

As I understand it (and I am not a tax professonal) the prior wording allowed for a tax credit up to $7,500.  The current wording sets a phase-out for section 30 D.  That is described in 
http://www.irs.gov/businesses/article/0,,id=214841,00.html as:

Qualified Plug-In Electric Drive Motor Vehicle Credit (IRC 30D) Phase Out
The new qualified plug-in electric drive motor vehicle credit phases out for a manufacturer’s vehicles over the one-year period beginning with the second calendar quarter after the calendar quarter in which at least 200,000 qualifying vehicles manufactured by that manufacturer have been sold for use in the United States (determined on a cumulative basis for sales after December 31, 2009) (“phase-out period”). Qualifying vehicles manufactured by that manufacturer are eligible for 50 percent of the credit if acquired in the first two quarters of the phase-out period and 25 percent of the credit if acquired in the third or fourth quarter of the phase-out period.  Vehicles manufactured by that manufacturer are not eligible for a credit if acquired after the phase-out period.

So, while I don't think that Tesla will make 200,000 qualifying vehicles, the tax credit in the future is not guaranteed and has an automatic phase out built into it..

Note, on the same page quoted, the prior Section 30 HAS EXPIRED, 

Plug-in Electric Vehicles (IRC 30)

Internal Revenue Code Section 30 provides a credit for qualified plug-in electric vehicles. The credit is equal to 10 percent of the cost of a qualified plug-in electric vehicle and is limited to $2,500. Qualified vehicles may include low-speed vehicles or vehicles that have two or three wheels.

Vehicles must be acquired after February 17, 2009, and before January 1, 2012. The vehicle must be acquired for use or lease and not for resale. Additionally, the original use of the vehicle must commence with the taxpayer and the vehicle must be used predominantly in the United States.

When in doubt about tax laws, I generally go directly to the source.  I am NOT a tax professional, and would urge you to consider discussing this with a good, knowledgeable tax accountant.

[todd.dore]

Hmmm....

Thanks Rich.  I appreciate that you dug up this info.  Unfortunately, most qualified tax accountants are not very knowledgable about these types of tax credits, either.

I'll have to deal with this after I purchase the Tesla, of course.

[scott.wilkinson]

Is anyone else in the process of applying for the IL Greenfleets conversion rebate?  I submitted in November and haven't heard anything yet.  Late last year, Mary Cruze told me she was retiring in January.  I hope that doesn't slow down the process.

[chuck.carrington]

My understanding (I am also NOT a tax expert) is that the phase out starts after 200,000 vehicles have been sold. This is what I was told and it is the way I read it in the quote that was posted.

As for the $4,000 IL rebate I was told by the Leaf salesman that I would get that for sure. But he is a car salesman, so I am hopeful but not counting on it. I am still waiting for my rebate when I converted my car to run on grease.

Chuck

[scott.wilkinson]

Just got a callback from someone in the IL EPA.  The submission I made last November for the rebate is still in process.  Since Mary's retirement they have a large backlog.  They have not found a replacement for her position.  They told me to be patient and hopefully they will start working through the applications in the next couple months.

[ted.lowe]

Just got a callback from someone in the IL EPA.  The submission I made last November for the rebate is still in process.  Since Mary's retirement they have a large backlog.  They have not found a replacement for her position.  They told me to be patient and hopefully they will start working through the applications in the next couple months.

Here is one example where a slightly larger gov. is preferred! :-)  Dreaded special interests... :-)

[ted.lowe]

Post from scott.taylor (removed by accident):

I had called the IRS a week or so ago to ask if I purchased an electric vehicle today, if I could take the tax credit on my 2011 taxes.  Of course, the answer was no, it applies the the tax year the car was put in service, but they did not give me the impression the the tax credit program had ended.

Take a look at the link below under phase out.  It seems to be saying a phase out of the credit will begin after the manufacturer has sold 200,000 units.  None have done so to date.

http://www.fueleconomy.gov/feg/taxevb.shtml

I had also heard the 2013 Obama budget had an increase of the credit from $7500 to $10000 in it.  But that would only be a reality if the budget passes as currently proposed, which is pretty unlikely.

Scott...

[scott.wilkinson]

Check arrived in mail today!!! Finally.  Batteries are getting ordered next week!!!!!