Stay up-to-date on the latest in local and national government and political topics with our newsletter.
An Electrify America Charging Station for electric vehicles is seen April 1 at Woodfield Village Green in Schaumburg. Eight months after landmark legislation aimed at bringing more electric vehicle producers to Illinois, no incentive agreements have been executed.
When he signed the Reimagining Electric Vehicles in Illinois Act last November, Gov. J.B. Pritzker hailed it as legislation that “will help Illinois become one of the leading EV hubs in the entire nation.”
“The Reimagining Electric Vehicles Act is about acknowledging there doesn’t need to be a tradeoff between a cleaner environment and more jobs,” Pritzker said at the time, speaking from a facility at a Rockford community college that will one day house an electric vehicle program. “We can do both, and today we take a giant leap forward in that quest.”
But more than eight months later, any incentives packages made available through the program are still on the assembly line.
The Illinois Department of Commerce and Economic Opportunity confirmed that, to this date, no agreements have been executed between the state and electric vehicle producers or suppliers under the parameters of the "REV Act."
“DCEO is in active conversations with companies to grow our base of EV leaders that call Illinois home, like Rivian, Lion Electric and EVBox, among others,” said DCEO spokeswoman Emily Bolton.
The law took effect immediately after being signed, but 2022 is the first year that credits could be earned. “Tax incentives like REV are binding legal documents which take several months to complete,” she said.
Bolton added that the process includes working with companies on their applications, negotiating a formal agreement and then executing a final contract — all of which that takes time, several months at a minimum.
Recipients of REV tax credits will only be made public once final agreements are executed, Bolton said.
According to a REV Illinois annual report, released by DCEO earlier this month, the department "expects to have projects to report on in the next reporting cycle."
Though there was a sense of urgency to pass the incentives package last year as EV companies make long-term decisions on where to locate in real time, experts say there is no reason to worry yet.
"There's always a lag to public policy and implementation," said P.S. Sriraj, director of the Urban Transportation Center at the University of Illinois at Chicago. "But that lag may be accentuated with what we have been experiencing the last couple of years with the pandemic and the impact on the economy and the manufacturing sector.
"But as long as it's in place and it's messaged the right way, I'm sure industry will take note," he continued. "Nobody wants to just let go of free money, especially the private sector."
The REV Illinois program is meant to encourage businesses in the fast-growing EV industry to invest in Illinois and to encourage the state's existing automakers to invest in their facilities as the auto industry shifts to electric.
It makes EV producers and suppliers eligible for what’s essentially an enhanced version of the state’s EDGE tax credit based on the amount of investment and jobs created.
The package is tailored so companies big and small are eligible, a deliberate sliding scale that may attract more headline-grabbing large companies like Rivian, but also smaller battery and parts producers that can build out the state’s EV supply chain.
Gov. J.B. Pritzker, right, watches Heartland Community College student PL Ngolo, left, and Rivian employee and instructor Ted Foos disassemble an automotive brake booster during Pritzker's Oct. 11 visit to the school's electric vehicle training program.
"I'd say it's still early days in terms of sort of assessing its value, but the early indicators are positive," said Dan Seals, CEO of Intersect Illinois, the state's public-private economic development arm. "We're having more conversations now with EV companies than we have had in the past. That said, it's just one piece of the puzzle."
For the largest tax break, an electric vehicle manufacturer must invest at least $1.5 billion and create 500 new jobs over a five-year period. A larger electric vehicle parts manufacturer would have to invest at least $300 million and create 150 new jobs over a five year period.
The smallest companies would be eligible for incentives if they invest at least $20 million and create 50 new jobs over a four-year period.
All EV producers and suppliers are eligible for a state income tax credit of 75% or 100% of payroll taxes withheld from each new employee for up to 10 years, with the greater percentage applicable if the company locates in an underserved area. They would receive 25% or 50% for current employees if the minimum number of new employees are hired.
This March 2021 file photo shows a EVgo electric vehicle charging station at Willow Festival shopping plaza parking lot in Northbrook.
Those receiving the largest packages would be eligible to receive the tax credit for up to 15 years and to receive exemptions on various other taxes, such as on utilities and telecommunications.
State lawmakers also voted to amend the act earlier this year. This expanded REV eligibility to include manufacturing of vehicles powered by hydrogen fuel cells or solar technology, manufacturers of electric bicycles, battery recycling and reuse manufacturers, and battery raw materials refining service providers.
Whether the REV Illinois program is a game-changer for the state's EV industry remains to be seen.
Sriraj and John Simon, a professor at Governor's State University, were awarded a grant earlier this year to examine how Illinois can develop a sustainable and inclusive supply chain for the electric vehicle industry.
"It's an important tool, but you may need to layer it with other other aspects to make manufacturing come back," Sriraj said, adding that having robust workforce development capabilities would be paramount.
Illinois has had a head start in the EV industry in some ways given the large investments made by automakers like Rivian, which bought the former Mitsubishi plant in Normal in 2017 and launched the R1T pickup in September 2021, the world's first battery-electric truck.
The company, which now employs more than 3,400 at their Normal facility, was aided by by a package of state EDGE tax credits and local property tax abatements.
Though those EDGE tax credits served as a model for REV Illinois, Seals said that the state's existing advantages, such as its educated workforce and status as the nation's logistics hub, are what made Illinois attractive to companies like Rivian and what will draw interest from other EV companies.
"Rivian came before that legislation was passed. Lion Electric came before that legislation was passed. EVBox came before that legislation was passed," Seals said. "What you need those incentives for are to compete with these states that have something similar or who are giving out cash. And you need to be able to respond to that.
"REV really allows us to stay in that conversation and let our value proposition come through," he added.
And beyond the REV Tax credits, there are EV provisions in the landmark clean energy law Pritzker signed in September, including a $4,000 subsidy for the purchase of an EV. The state has also set a goal of having 1 million electric vehicles on the road in Illinois by 2030.
A Rivian R1T pickup truck rests on a moving assembly line at the Normal automotive plant on Sept. 26.
The state also hopes to piggyback off federal investment in EV infrastructure. It will receive $149 million to expand its EV charging network from the $1 trillion infrastructure bill signed into law by President Joe Biden last year.
"If the federal money can be used to put the supportive infrastructure for the electric vehicle industry, the REV Act actually goes to the core of how manufacturing can be supporting this industry in Illinois," Sriraj said, "because this could potentially attract manufacturers of the various components, from the smallest part that goes into an electric vehicle to the more important ones like engines and batteries.
"The entire spectrum can benefit through this act."
Storage area is built into the rear seats of a Rivian R1T pickup on display at the Normal automotive plant, Sunday, Sept. 26, 2021.
A Rivian R1T pickup truck goes over the side of a 45-degree embankment on a test track at the Normal automotive plant, Sunday, Sept. 26, 2021. The company's First Mile event allowed government officials and other invited guests to test drive the first electric truck that was being released to customers on Monday.
A Rivian R1T pickup truck goes over the side of a 45 degree embankment on a test track at the Normal automotive plant, Sunday, Sept. 26, 2021. The company's First Mile event allowed government officials and other invited guests to test drive the first electric truck that was being released to customers on Monday.
A Rivian R1T pickup truck goes over the side of a 45-degree embankment on a test track at the Normal automotive plant, Sept. 26.
A Rivian R1T pickup is parked at the Normal plant on Sunday. Midwestern states are entering into an agreement to develop an electric vehicle infrastructure.
A Rivian R1T pickup truck is shown at the Normal plant. The company is expected to go public on Wednesday.
A Rivian R1T pickup truck was driven during the First Mile event at the Normal automotive plant, Sunday, Sept. 26, 2021. The company's First Mile event allowed government officials and other invited guests to test drive the first electric truck that was being released to customers on Monday.
A Rivian R1T pickup truck is ready for a test drive an event at the Normal plant.
A display on Sunday at the First Mile event at Rivian's Normal plant shows different charging options.
The storage tunnel on the Rivian R1T pickup truck goes through the body of the truck that was on display at the Normal automotive plant, Sunday, Sept. 26, 2021.
What would be an engine compartment on a gasoline fueled pickup truck is a storage compartment of the Rivian R1T pickup truck that was on display at the Normal automotive plant, Sunday, Sept. 26, 2021.
A storage compartment under the bed of the Rivian R1T pickup truck allows for a full-size spare as the truck was on display at the First Mile event at the Normal automotive plant, Sunday, Sept. 26, 2021.
The interior of the Rivian R1T pickup truck is filled with leather surfaces and glass cockpit instrumentation as it was displayed at the First Mile event at the Normal automotive plant, Sunday, Sept. 26, 2021.
Those who purchase a Rivian R1T pickup truck can take delivery at a special customer delivery station that was built outside the Normal automotive plant, Sunday, Sept. 26, 2021.
The skateboard chassis of a Rivian R1T pickup is on display at the customer delivery office at the Normal automotive plant, Sunday, Sept. 26, 2021.
The heart of the Rivian R1T pickup truck is the rechargeable battery pack, which is made up of hundreds of Samsung lithium ion batteries. The pack is on display at the customer delivery center at the Normal automotive plant, Sunday, Sept. 26, 2021.
A Rivian R1T pickup is driven Sunday on the Normal plant's test track, which the factory opened to media and other officials. The "First Mile" event allowed invited guests to test drive the first electric truck that was being released to customers on Monday.
A Rivian employee on Sunday at the company's Normal plant makes popcorn on a pull-out kitchen that is an accessory for the R1T electric pickup truck.
A Rivian R1T pickup truck is on display at the company's First Mile event at the Normal automotive plant on Sept. 27.
A Rivian R1T pickup truck is driven on a 45-degree hill at the automaker's factory in Normal on Sunday. "This is our first opportunity to let our customers and our pre-order holders test drive R1T for the first time, and to meet our team," said Laura Schwab, vice president of sales and marketing.
Contact Brenden Moore at 217-421-7984. Follow him on Twitter: @brendenmoore13
Stay up-to-date on the latest in local and national government and political topics with our newsletter.
Email notifications are only sent once a day, and only if there are new matching items.
Rivian’s all-electric R1T truck is 2022’s “Coolest Thing Made in Illinois.” That was the result of the third annual Makers Madness bracket-style tournament hosted by the Illinois Manufacturers’ Association which allows Illinoisans to vote for the “coolest” product made in the state.
Intersect Illinois helped Rivian negotiate the deal to buy the shuttered Mitsubishi plant for $16 million in January 2017 — but the victories have been few and far between since.
"It was far from guaranteed that there would ever be a new employer to play the role that Mitsubishi had," Buttigieg said. "But the Rivian story and the Bloomington-Normal story is one that a lot of communities would envy."
Driven by legislators, automakers and consumer demand, electric vehicles are poised to rule the road over the next decade, and Illinois may be a key manufacturing hub.
The legislation makes electric vehicle producers and suppliers eligible for what’s essentially an enhanced version of the state’s EDGE tax credit based on the amount of investment and jobs created.
The legislation, dubbed the "Reimagining Electric Vehicles in Illinois (REV) Act," would offer "enhanced" tax credits modeled after the state's Economic Development for a Growing Economy (EDGE) program.
An Electrify America Charging Station for electric vehicles is seen April 1 at Woodfield Village Green in Schaumburg. Eight months after landmark legislation aimed at bringing more electric vehicle producers to Illinois, no incentive agreements have been executed.
Gov. J.B. Pritzker, right, watches Heartland Community College student PL Ngolo, left, and Rivian employee and instructor Ted Foos disassemble an automotive brake booster during Pritzker's Oct. 11 visit to the school's electric vehicle training program.
This March 2021 file photo shows a EVgo electric vehicle charging station at Willow Festival shopping plaza parking lot in Northbrook.
A Rivian R1T pickup truck rests on a moving assembly line at the Normal automotive plant on Sept. 26.
Get up-to-the-minute news sent straight to your device.