State agency seeks changes in recently enacted electric vehicle incentive program

[March 25, 2022]  By Kevin Bessler | The Center Square

(The Center Square) – In an effort to attract more electric vehicle-related companies to Illinois, a state agency is recommending making changes to the Reimagining Electric Vehicles Act, or REV Act.

The program approved last year offers tax incentives to manufactures of EVs or EV parts that expand or relocate to Illinois. The legislation also allows local municipalities to abate property taxes for EV projects.

State statute defines EVs as vehicles exclusively powered by electricity and permitted to operate on public roadways, but during a hearing Thursday of the House Revenue and Finance Committee, Michelle Masoncup, general council for the Illinois Department of Commerce and Economic Opportunity (DCEO), said they would like to see that stipulation removed.

“This would incentivize other types of manufacturing of EV vehicles, such as agricultural EV vehicles and other EVs that don’t operate on public roadway,” Masoncup said.

DCEO would also like to remove the requirement that the vehicle must plug in to qualify for the REV Act.

“This will allow hydrogen fuel cell and solar technology manufacturers to also qualify for REV,” Masoncup said.

Illinois is home to several EV-related companies. Rivian Motors manufactures electric pick-up trucks in Bloomington-Normal, and Canadian-based Lion Electric Co. received a $7.9 million tax credit to build electric buses and trucks in Joliet.
 

The Belvidere Assembly plant near Rockford is slated to build electric versions of the Dodge Charger, Challenger and a crossover beginning in 2024.

The state is hoping to lure battery companies to Illinois. DCEO proposes including them in the REV Act.

“We think that incentivizing reuse of batteries is crucial for both the environment and the reuse of materials in the battery,” Masoncup said. “It would be good for Illinois.”

President Joe Biden has set an ambitious goal of a 50% market share for EVs by 2030, while Gov. J.B. Pritzker wants to see 1 million registered EVs on Illinois roads by that same time.

Kevin Bessler reports on statewide issues in Illinois for the Center Square. He has over 30 years of experience in radio news reporting throughout the Midwest.