Funding Resources
IACT continuously surveys available resources to support the adoption of alternative renewable fuels and technologies. Listed below is a compilation of funding opportunities to increase accessibility across diverse populations.
IACT has made a specific effort to include sources that serves various geographic areas across the state of Illinois; however, please note this page is not exhaustive. Should you see any programs omitted below, please contact us at info@il-act.org
Last updated August 11, 2026
Active Funding, Tax Credits, Rebates, Incentives, and Reimbursements
State
ISBE | School Bus Retrofit Reimbursement (Reimbursement Claims Due Annually August 15)
The Illinois State Board of Education allows qualifying districts to seek support for converting older gasoline or diesel engines to cleaner alternative fuels or higher fuel efficiency.
- Eligible Entity: Must be a recognized, qualifying school district in Illinois.
- Project Type: The project must convert existing vehicle combustion engines to more fuel-efficient systems or alternative-fuel setups (such as cleaner burning options or enhanced efficiency hardware).
- Statutory Compliance: Districts must adhere to state transportation fund requirements and guidelines outlined under the Illinois School Code governing pupil transportation safety and-or depreciation claims.
- Conversions or retrofits must meet strict Illinois Vehicle Code standards for student transport safety.
- General administrative, non-compliant, or unapproved mechanical updates outside of fuel-efficiency and alternative-fuel parameters are excluded.
To apply for school bus retrofit or transportation equipment reimbursements in Illinois, qualifying school districts must submit electronic claims through the Pupil Transportation Claim Reimbursement System via ISBE's website on or before the annual August 15 statutory deadline.
ISBE | Illinois Student Transportation Reimbursement Claim (Reimbursement Claims Due Annually August 15)
The Illinois Student Transportation Reimbursement Claim is an annual financial filing made by local school districts and education agencies to the state to recover eligible costs for transporting students. The Illinois Student Transportation Reimbursement Claim can include the total cost of converting school bus gasoline engines to more fuel-efficient engines or alternative-fuel engines under the state's direct allowable transportation costs.
To receive state reimbursement, districts must submit certified transportation claims to the Illinois State Board of Education by August 15 each year.
Learn more from the May 20, 2026 webinar:
IL EPA | Individual EV Rebate Program (August 1-December 31, 2026)
The Illinois General Assembly has appropriated $14 million for rebates in the current fiscal year, ending June 30, 2026. Illinois residents that purchase a new or used all-electric vehicle from an Illinois licensed dealer, meet all other eligibility requirements, and apply during a rebate cycle will be eligible for a rebate. Applicants that certify as low income are given an enhanced rebate and priority in disbursement.
Rebate amounts have been updated:
- A $4,000 rebate to a low-income applicant, as defined in the EV Rebate Act, for the purchase of an all-electric vehicle that is not an electric motorcycle (See Section 2 of the Instructions).
- A $2,000 rebate to an applicant that is eligible to apply for a rebate but does not meet the low-income criteria for the purchase of an all-electric vehicle that is not an electric motorcycle.
- A $1,500 rebate to an eligible applicant for the purchase of an all-electric motorcycle.
There have been numerous changes to the program, including:
- Income limits for applicants
- Low income qualification is determined by county
- Vehicle purchase price limits
- Rebate amount
This round is open from August 1, 2026, to December 31, 2026.
Please check the EV Rebate Program page for eligibility.
Distributed by the Illinois Environmental Protection Agency.
IL DCEO | Reimagining Energy and Vehicles (REV) (Ends December 31, 2028)
The Reimagining Energy and Vehicles in Illinois Act (REV Illinois Act) is an incentive program designed to bolster Illinois manufacturing in the clean jobs economy, created to attract companies all along the supply chain in the electric vehicle and renewables sectors. REV Illinois supports the state's climate change agenda to achieve 100% clean energy by 2050, including putting one million EVs on the road by 2030.
Applicants must commit to minimum capital investment and job creation amounts to be eligible for the REV Illinois program. REV benefits are available for projects starting at $2.5 million capital investment and creating 50 jobs or 10 percent of the company’s statewide baseline. Manufacturing businesses committed to expanding in or relocating to Illinois from the following sectors are eligible to apply:
- Electric & hybrid vehicles, their component parts, or their power supply equipment
- Renewable energy and renewable energy products
- eVTOL aircrafts and airline propulsion systems (hybrid or fully electric),
- Battery recycling and reuse
- Green steel
- Electrical transformers or electrical transformer component parts
- Battery raw materials refining, or process developers for battery recycling and reuse.
Smaller projects are considered Tier 1 with benefits up to 20 years and larger projects are Tier 2 with benefits up to 30 years.
Tier One
Credit for Payroll Tax Withholding or Income Tax
- New Hires at 75 to 100 percent
- Retained at 75 to 100 percent
- Qualified Training 10 to25 percent*
Construction Jobs Credit 50 to75 percent of payroll withholding of construction jobs*
0.5 percent Income Tax Credit on Qualified Investment
Tier Two
Credit for Payroll Tax Withholding or Income Tax*
- New Hires at 75 to 100 percent
- Retained at 75 to 100 percent
- Qualified Training 10 to25 percent*
Construction Jobs Credit 50 to75 percent of payroll withholding of construction jobs*
0.5 percent Income Tax Credit on Qualified Investment
Utility Excise Tax Exemption: 20-30 years
Building Material Exemption from State Sales Tax: 5 years
The IL DCEO cannot enter into any new agreement after December 31, 2028.
Learn more on how to apply. For more information contact CEO.REV@Illinois.gov.
IL EPA | Energy Efficiency Trust Fund Grant Program
The Energy Efficiency Trust Fund (EE Trust Fund) was established by 20 ILCS 687/6-6 to benefit residential electric customers through projects determined to promote energy efficiency in the State of Illinois, with an emphasis on low-income households. The Illinois EPA Office of Energy will award funds for energy efficiency projects at properties benefitting residents receiving housing assistance from local, state and federal programs.
Eligible applicants include public Housing authorities, units of local government (municipalities, counties or townships) and nonprofit organizations that manage properties participating in federal, state or local rental assistance, housing choice vouchers, or subsidized housing assistance programs.
Awards will be made on a first-come, first serve basis to applicants meeting all eligibility criteria until all funds are expended.
Awards will range from $50,000 to $1,000,000. There is a cost share/match requirement for this program.
Additional program details and application package may be accessed via Amplifund portal.
Learn more and register for technical support hours on the Illinois EPA website.
IL EPA | VW Round 9 - Electric Trucks
Illinois EPA is accepting applications to fund a portion of the eligible costs associated with the replacement (not repower) of eligible existing and licensed on-road diesel Class 4-8 medium- and heavy-duty local freight trucks (at least 14,001 lbs. GVWR) and Class 8 port drayage trucks (at least 33,001 lbs. GVWR). Each new replacement truck must be of the same type and class as the retired truck and be a licensed on-road all-electric Class 4-8 medium- and heavy-duty local freight truck or Class 8 port drayage truck (hereinafter “all-electric trucks” or “electric trucks”) located and operated in any of the three VW Priority Areas established in the Beneficial Mitigation Plan.
The types of trucks covered under this NOFO are those used to haul and deliver freight or cargo, including delivery/box trucks, waste haulers, Class 8 port drayage trucks, landscape trucks, dump trucks, and freight/transport trucks. If the existing diesel truck to be replaced and the proposed new electric truck is not routinely hauling any type of freight or cargo by design or actual use, it is ineligible for this NOFO. In addition to providing funding for new all-electric trucks, Illinois EPA will also fund a portion of necessary new Level 2 or DCFC charging equipment if charging infrastructure is needed.
Applicants may find the NOFO and all application materials on the Driving a Cleaner Illinois website and also at Illinois’ GATA webpage.
Applicants must pre-qualify prior to application submission. The application period will remain open until funds are depleted. Applications should be signed, scanned and submitted to epa.vwgrants@illinois.gov
Funds available until depleted.
City of Batavia | Electric Vehicle Home Charging Station Rebate Program
The City of Batavia offers a rebate program to encourage residents to install home electric vehicle charging stations. This program helps offset the cost of purchasing and installing Electric Vehicle Supply Equipment (EVSE) while promoting sustainable transportation.
Program Requirements
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Permit Requirement: Residents must obtain a building permit for EVSE installation and related electrical improvements. The permit fee will be refunded after a successful final inspection.
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Rebate Amount: The rebate covers the actual purchase and installation cost of eligible EVSE, up to a maximum of $500 per household.
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Eligible Items:
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Hardwired Level 1 or Level 2 EVSE
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Electrical circuit improvements needed for installation and operation
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240V circuit improvements made solely to support a plug-in Level 2 EVSE
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Ineligible Items: Plug-in type Level 1 or Level 2 EVSE (since they are not considered permanent home fixtures).
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Availability: Rebates are awarded on a first-come, first-served basis until the annual funding limit set by the City Council is reached. The City Council reserves the right to adjust funding levels or terminate the program at any time. Rebates will not be granted for unpermitted work.
City of Naperville | Electric Vehicle Charging Station Incentive
The City of Naperville is offering up to a $500 incentive for a Level 2 or 3 charging station for both residential and nonresidential use. Charging stations must be hardwired and permitted with the City.
All residential incentive applications must be submitted via the City's GOVQA portal. You will need to create an account and password. If you already have an account you'll be directed to the GOVQA login. Once you login, the specific incentive program application will display.
Learn more on the City of Naperville's website. More information is available in the application. Please review the electric vehicle charger program incentive guide for tips to apply.
Ameren | ChargeSmart
Electric vehicle owners can save on energy delivery costs through the Ameren Illinois ChargeSmart program by shifting household electricity use—including EV charging—to off-peak hours.
ChargeSmart offers different price periods throughout the day:
- Preferred Charging Period (PCP): 11 p.m. to 7 a.m.
Receive a credit on your electric delivery service for every kilowatt-hour (kWh) used during this period. - Non-Preferred Charging Period (NPCP): 11 a.m. to 7 p.m.
An additional charge applies to each kWh used during your household's highest one-hour period of total electricity use within this timeframe. - Standard Charging Period: 7 a.m. to 11 a.m. and 7 p.m. to 11 p.m.
No additional credits or charges apply to electricity used during these hours.
First-year bill credit: Adjusting your electricity habits can take time. To help offset potentially higher charges during the NPCP, ChargeSmart provides a monthly bill credit during your first 12 consecutive months of enrollment. This gives you time to understand how your household's electricity use affects your bill and adjust your usage to maximize savings.
Important: ChargeSmart only affects Energy Delivery Charges. Your Energy Supply charges will not change.
ComEd Rebates | For Business and Residential
ComEd Business Customer EV Rebates
Business and public sector customers may qualify to get a rebate for upgrading vehicles to electric.
- Fleet Vehicles, Class 1-2 (Light duty) rebates
- Base rebate: $5,000
- Select Customers Rebate*: $7,500
- Fleet Vehicles, Class 3-6 EV (Medium duty) rebates
- Base rebate: $20,000
- Select Customers Rebate*: $30,000
- Fleet Vehicles, Class 7-8 EV (Heavy duty) rebates
- Base rebate: $50,000
- Select Customers Rebate*: $75,000
- Transit Bus >=30’ rebates
- Base rebate: $80,000
- Select Customers Rebate*: $120,000
- K-12 School Bus >=35’ rebates
- Base rebate: $120,000
- Select Customers Rebate*: $180,000
ComEd is working to establish a process to enable pre-approved rebate vouchers that can be applied at the point of purchase for new vehicles and a post purchase solution for pre-owned vehicles.
ComEd Business Customer Make-Ready Rebates
Business and public sector customers can also receive rebates on make-ready infrastructure, whether located on the customer side or ComEd side of the meter for Level 2 (“L2”) and Direct Current Fast Chargers (“DCFC” or Level 3).
- Make-Ready Rebates for infrastructure serving Level 2 (L2) Charger
- Base Rebate: Make-ready rebate of up to $5,333 per port with a 10-port maximum
- Select Customers* Rebate: Make-ready rebate of up to $8,000 per port with a 10-port maximum
- Make-Ready Rebates for infrastructure serving Direct Current Fast Chargers (DCFCs or Level 3 chargers)
- Base Rebate: Make-ready rebate of up to $667 per kW with a minimum of 50 kW (maximum rebate of $500,000)
- Select Customers* Rebate: Make-ready rebate of up to $1,000 per kW, with a minimum of 50 kW (maximum rebate of $500,000)
Learn more about Make-Ready Infrastructure here.
ComEd Rebates | Residential
The program offers rebates for the installation and purchase of Level 2 (L2) electric vehicle (EV) chargers that are "smart" (i.e. Wi-Fi enabled), ENERGY STAR® certified, and Nationally Recognized Testing Laboratory (NRTL) certified to Residential ComEd Customers. Charger installation must be completed before submission of a Program application.
The base rebate is up to $2,500, for Select Customers the rebate is up to $3,750. See the program terms and conditions for more information on eligibility for the higher rebate.
Illinois Propane Gas Association | Propane Vehicle Incentives
Incentives are available to Illinois propane customers who purchase a new propane vehicle. Any propane vehicle that is registered and operated in the state of Illinois is eligible for up to $4,000 for the purchase of a new propane vehicle or cost of the conversion if less than $4,000.
All rebate and incentive applications must be submitted by your Illinois propane provider to qualify. If you have purchased a new propane vehicle or converted a vehicle to propane, contact your propane provider to apply. View the Rebate Guidelines for more information.
Learn more on the Illinois Propane Gas Association website.
Federal
FTA | Grants for Buses and Bus Facilities Infrastructure Programs (Closes September 21, 2026)
The Grants for Buses and Bus Facilities Infrastructure Programs help transit agencies buy, upgrade, and repair buses, vans, and transit properties like passenger stations and maintenance garages.
Buses and Bus Facilities Competitive Program
The Grants for Buses and Bus Facilities Competitive Program makes federal resources available to states and direct recipients to replace, rehabilitate, and purchase buses and related equipment and to construct bus-related facilities, including technological changes or innovations, to modify low or no-emission vehicles or facilities.
Eligible applicants include: designated recipients that allocate funds to fixed-route bus operators, states (including territories and Washington D.C.) or local governmental entities that operate fixed-route bus service, and Indian tribes.
Eligible activities include: capital projects to replace, rehabilitate and purchase buses, vans, and related equipment, and to construct bus-related facilities, including technological changes or innovations to modify low or no-emission vehicles or facilities. Additionally, 0.5% of a request may be for workforce development training, and an additional 0.5% may be for training at the National Transit Institute. Applicants proposing any project related to zero-emission vehicles must also spend 5% of their award on workforce development and training as outlined in their Zero-Emission Transition Plan, unless the applicant certifies that their financial need is less.
The federal share of eligible capital costs is 80 percent of the net capital project cost, unless the grant recipient requests a lower percentage.
Low or No Emission Grant Program
The Low or No Emission competitive program provides funding to state and local governmental authorities for the purchase or lease of zero-emission and low-emission transit buses, as well as acquisition, construction, and leasing of required supporting facilities.
Eligible applicants include: direct or designated recipients of FTA grants, states, local governmental authorities, and Indian Tribes. Except for projects proposed by Indian Tribes, proposals for funding eligible projects in rural (non-urbanized) areas must be submitted as part of a consolidated state proposal. States and other eligible applicants also may submit consolidated proposals for projects in urbanized areas.
Eligible activities include: purchasing or leasing low- or no-emission buses, acquiring low- or no-emission buses with a leased power source, constructing or leasing facilities and related equipment (including intelligent technology and software) for low- or no-emission buses, constructing new public transportation facilities to accommodate low- or no-emission buses, or rehabilitating or improving existing public transportation facilities to accommodate low- or no-emission buses.
Additionally, 0.5% of a request may be for workforce development training, and an additional 0.5% may be for training at the National Transit Institute (NTI). Applicants proposing any project related to zero-emission vehicles must also spend 5% of their award on workforce development and training as outlined in their Zero-Emission Transition Plan, unless the applicant certifies that their financial need is less.
Complete proposals must be submitted electronically through the GRANTS.GOV “APPLY” function by 11:59 p.m. Eastern Time Monday, September 21, 2026.
- The Bus Program funding opportunity ID is FTA-2026-010-TPM-BUS.
- The Low-No Program funding opportunity ID is FTA-2026-011-TPM-LWNO
EDA | Planning and Research Technical Assistance Grant Program
The U.S. Economic Development Administration (EDA) Planning and Local Technical Assistance Program is a funding initiative that helps communities build economic strength. It provides planning grants and local technical assistance to support job creation and long-term prosperity in distressed regions
The Planning and Local Technical Assistance Grant Program serves to support recipients with short-term and state-planning investments designed to guide the eventual creation and retention of high-quality jobs. This funding can be used for EV technical assistance, infrastructure planning, and workforce development. To view the regional offices, Notice of Funding Opportunity (NOFO) number, and states served, please visit the website.
*The Bus Exportable Power Systems (BEPS) is part of the Technical Assistance and Workforce Development Program, transforming public transit hybrid-electric, battery-electric, and fuel-cell buses into mobile emergency generators during major power grid failures
Applications are accepted on an ongoing basis. Read the NOFO to learn how to apply.
USDA | Community Facilities Direct Loan and Grant Program
Application window is open year-round.
The Community Facilities Direct Loan and Grant Program provides affordable funding to develop essential community facilities in rural areas. An essential community facility is defined as a facility that provides an essential service to the local community for the orderly development of the community in a primarily rural area, and does not include private, commercial or business undertakings.
Eligible borrowers include public bodies, community-based non-profit corporations, and Federally Recognized Tribes.
Funds can be used to purchase, construct, and / or improve essential community facilities, purchase equipment and pay related project expenses. This includes installing public, fleet, or community facility charging locations; purchasing light-duty or public works vehicles—such as electric school buses, transit buses, or municipal utility fleets—tied to essential community services; and upgrading municipal and community structures to support electric vehicle energy transitions.
To apply, contact the Illinois Department of Agriculture to discuss your specific project. Applications for this program are accepted year round.
SSN | Build America, Buy America
The Sustainable States Network (SSN) released a Request for Qualifications (RFQ) for Build America, Buy America (BABA)–compliant electric vehicle charging equipment.
About the RFQ:
The SSN is seeking statements of qualifications from manufacturers and distributors whose EV charging products meet BABA domestic production requirements. Responsive submissions will be included in a shared list used by SSN member states, as well as local government and nonprofit partners implementing federally funded EV charging projects.
Participating vendors will be asked to provide:
- Contact information
- Product models and charger types
- ISO 15118 standard details
- A BABA Compliance Letter including a formal compliance statement, itemized covered products, and an authorized signature
Optional product information can also be uploaded through the submission form.
All submittals must be completed via the Google Form linked in the RFQ.
Respondents will be able to update listings as needed and the list will remain open until at least December 2027.
Exemptions
Electric and Hydrogen Vehicle Weight Exemptions
Electric vehicles and hydrogen fuel cell vehicles may exceed posted vehicle weight limits by up to 2,000 pounds to account for the additional weight of alternative fuel powertrain components. This allowance applies when the additional weight is attributable to the electric or hydrogen fuel cell system and related equipment.
Battery Electric Vehicle (BEV) Emissions Inspection Exemption
Battery electric vehicles are exempt from state motor vehicle emissions inspections. Learn more on the Illinois Air Team website.
Tax Breaks for Ethanol, Biodiesel and Renewable Diesel
Sales tax exemptions or reduced taxes are available for certain alternative fuel blends.
Ethanol Blends
Through December 31, 2028:
- E15 (15% ethanol): Sales tax applies to 90% of the sale price.
- E20–E50 (20%–50% ethanol): Sales tax applies to 80% of the sale price.
- E51–E83 (51%–83% ethanol): No sales and use tax applies.
After December 31, 2028, taxes will apply to the full sale price of all ethanol fuel blends.
Biodiesel and Renewable Diesel
Through November 30, 2030, diesel blends containing at least 10% biodiesel or renewable diesel are exempt from sales and use taxes during the winter period of December 1 through March 31.
During the rest of the year, the blend must contain a higher percentage of biodiesel or renewable diesel to qualify for the exemption:
| Period | Minimum biodiesel or renewable diesel content |
|---|---|
| April 1–November 30, 2024 | 13% |
| April 1–November 30, 2025 | 16% |
| April 1, 2026–November 30, 2030 | 19% |
Starting April 1, 2026, diesel fuel must contain at least 19% biodiesel or renewable diesel to qualify for the sales and use tax exemption during the April–November period.
Fleet User Fee Exemption
Fleets with 10 or more vehicles located in defined areas of Illinois must pay an annual fee of $20 per vehicle in addition to registration fees. Owners of electric vehicles are exempt from this fee. The Office of the Illinois Secretary of State deposits all fees into the Electric Vehicle Rebate Fund.
Idle Reduction Weight Exemption
A vehicle equipped with idle reduction technology may exceed Illinois’ gross, axle, and bridge vehicle weight limits by up to 550 pounds to compensate for the additional weight of the idle reduction technology. The additional weight may not exceed the actual weight of the idle reduction unit. The vehicle operator must carry written certification showing the weight of the technology and must be able to demonstrate or certify that the unit is fully functional.
Natural Gas and Propane Vehicle Weight Exemption
A vehicle powered by natural gas or propane may exceed Illinois' gross, axle, and bridge vehicle weight limits by up to 2,000 pounds. This exemption does not apply on interstate highways.
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