REV Tier 1 Eligibility, Credits and Exemptions
Who is eligible: EV manufacturers, EV component part manufacturers, and EV power supply equipment manufacturers that make over $20M in capital investments & create 50+ new jobs within 4 years.
Credits and exemptions available:
- A tax credit equal to 75% of the income tax withholdings of new jobs created in the state. This percentage increases to 100% for projects that locate in priority areas, as described below. Recipients may elect to claim the credit against their obligation to remit employee withholding taxes to the Illinois Department of Revenue. This credit may last up to 10 years.
- If investment and new-job thresholds are met, a tax credit equal to 25% of income tax withholding for retained jobs. This percentage increases to 50% for projects that locate in priority areas, as described below. Recipients may elect to claim the credit against their obligation to remit employee withholding taxes to the Illinois Department of Revenue. This credit may last up to 10 years.
- A non-refundable income tax credit equal to 10% of eligible training costs for full-time new and retained employee positions at the project.
- Qualifying credits are identified as costs incurred to upgrade the technological skills of Full-Time Employees in Illinois and include:
- curriculum development; training materials (including scrap product costs);
- trainee domestic travel expenses;
- instructor costs (including wages, fringe benefits, tuition and domestic travel expenses);
- rent, purchase or lease of training equipment; and other usual and customary training costs.
- The credit available for training costs increases to 25% of eligible training costs for:
- Training of new employees that have graduated from an Illinois institution of higher education within the past two years;
- Training performed by an Illinois institution of higher education; and/or
- Training costs related to a USDOL-certified apprenticeship.
- Note: Training costs do not include costs associated with travel outside the United States (unless the Taxpayer receives prior written approval for the travel by the Director based on a showing of substantial need or other proof the training is not reasonably available within the United States), wages and fringe benefits of employees during periods of training, or administrative cost related to Full-Time Employees of the Taxpayer.
- A non-refundable income tax credit equal to 50% of the amount of incremental income tax attributable to the construction wages paid in connection with construction of the project facilities. This percentage increases to 75% for projects that locate in priority areas, as described below.
Priority areas include underserved areas and energy transition areas – allowing for up to 100 percent of income tax withholding.
- "Energy transition area" means a county with less than 100,000 people or a municipality that contains one or more of the following:
- A fossil fuel plant that was retired from service or has significant reduced service within 6 years before the time of the application or will be retired or have service significantly reduced within 6 years following the time of the application;
- A coal mine that was closed or had operations significantly reduced within 6 years before the time of the application or is anticipated to be closed or have operations significantly reduced within 6 years following the time of the application.
- Underserved area means any geographic area as defined in Section 5-5 of the Economic Development for a Growing Economy Tax Credit Act.
View a map of the underserved areas.
- All approved REV Illinois recipients will be subject to annual workforce and vendor diversity reporting requirements
- Credits cannot be claimed any sooner than 1/1/2025
- Companies must ensure competitive wages for full-time employees, as well as a project labor agreement