Tier 2 Investment

REV Tier 2 ​Eligibility, Credits and Exemptions

Who is eligible: This tier includes projects similar to Tier 1, but that entail larger capital investments and job commitments. These include:

  • EV manufacturers that will make at least $1.5 billion in capital investment and create over 500 jobs within 5 years
  • EV component part manufacturers that will make at least $300 million in capital investment and create over 150 jobs within 5 years
  • Manufacturers that are converting existing facilities to allow for production of EVs and EV component partss, and that will make $100 million in capital investment and create over 75 new jobs (or new jobs equivalent to 10% of their statewide baseline, whichever is less) within 5 years

Credits and exemptions available:

  • All of the credits available for Tier 1, with the potential duration of credits for new and retained jobs extended from 10 years to 15 years
  • Exemption on retailers' occupation tax paid on building materials for up to 5 years
  • Exemption on state utility tax for electricity and natural gas for up to 10 years
  • Exemption on telecommunication excise tax and ICC administrative charge waived for up to 10 years
  • A non-refundable income tax credit equal to 0.5% on investment in qualified property

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:
    1. 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;
    2. 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.

Once approved:

  • 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
  • EV manufacturers making at least $1.5 billion in investment and creating over 500 jobs shall maintain labor neutrality for employees working on the premises