Clean Energy Incentives in Illinois

Restoration of landmark buildings

EV charging deployment across Chicago

Affordable unit requirements or fees

Arts funding for Chicago organizations

Energy efficiency, EV infrastructure, green improvements

Emergency rent and utility assistance

Housing for homeless and at-risk populations

Rental assistance and housing development

Affordable rental preservation

Green industry job training including EV

Capital development grants

Permanent building improvement reimbursement

Training for incumbent workers and new hires

Property-assessed financing for clean energy and EV charging

Community development including infrastructure

Business growth acceleration

Cook County property tax incentive classification under Cook County Real Property Assessment Classification Ordinance. Most heavily used incentive for industrial development in metropolitan Chicago region. Application via Cook County Assessor with required Resolution of Support from the property's home municipality. Stack with: federal Opportunity Zones (if property in OZ tract), federal §179D for energy efficiency components, MACRS depreciation, IL Enterprise Zone (if applicable zone overlap), Cook County C-PACE financing.

Cook County property tax incentive for smaller commercial development projects. Mirrors Class 6b structure but applies to commercial (not industrial) property and is limited to projects $2M or less. Most heavily used for small retail, office, and mixed-use redevelopment in commercial corridors throughout Cook County.

Cook County property tax incentive for larger commercial development projects. Same structure as Class 7a but for projects exceeding the $2M threshold. Used heavily for mid-size commercial redevelopment, hotel renovation, larger mixed-use, and major office building rehab in Cook County.

Cook County property tax incentive variant for commercial properties that need investment but don't meet the full distress threshold of Class 7a/7b. Shorter incentive period and lower investment threshold make it accessible for smaller revitalization projects, neighborhood-scale commercial renovation, and corridor improvements.

Cook County's strongest property tax incentive, available only in designated severely-distressed townships in south Cook County. Extended 14-year incentive period reflects deeper economic distress in eligible communities. Used heavily for industrial redevelopment in south Cook industrial corridors and commercial revitalization in distressed townships.

Affordable housing development

Renewable energy community projects

EPA-administered direct-grant program (separate from state pass-throughs) that competitively awards diesel-emission-reduction funding to regional, multi-state, and operator-level applicants. Recent IL-relevant awards include American Lung Association ($3.99M for 42-vehicle multi-state replacement), Chicago Department of Transportation ($3.83M for 10 electric bucket trucks), Environmental Initiative ($3.33M for 16 Class 8 electric trucks at Martin Brower's McCook IL distribution center), and ALA ($1.28M for locomotive APUs). October 2024 announcement: EPA released $125M in national DERA funding.

Financial assistance for energy upgrades and retrofits: insulation, HVAC, electrification, lighting, building envelope. One of the most concrete examples of the "Climate Ready" municipal grant trend in IL.

Capital for major projects

Clean energy in eligible communities

Affordable housing preservation

Illinois EPA grant program for mobile-source electrification projects, braiding three funding sources — Climate and Equitable Jobs Act (CEJA), the Volkswagen Environmental Mitigation Trust, and the federal Diesel Emission Reduction Act (DERA). Each Notice of Funding Opportunity (NOFO) names its source, eligible project types, cost-share rules, and application window.

Tax credits for Illinois manufacturing

Promote economic development

Endangered species programs

Bridge loan program from U.S. DOE Energy Efficiency Revolving Loan Fund administered by IFA. Provides short-term financing (12–18 months typical) to cover the gap between completing an energy efficiency or clean energy project and receiving the federal Direct Pay tax credit (elective pay), Investment Tax Credit (ITC), Renewable Energy Credits (RECs), or other state/utility incentives. Especially valuable for tax-exempt entities and small businesses that depend on Direct Pay reimbursement, where Treasury payment timing creates working capital challenges. Co-lending and participation loan structures also available for longer-term financing. Eligible energy assessments can be obtained free or low-cost through ComEd Facility Assessment, Ameren Energy Consultation, IEPA EE Assessment Program, or Nicor Gas assessments.

Environmental compliance projects

Loan program funded by U.S. EPA Climate Pollution Reduction Grants for medium- and heavy-duty EV charging infrastructure deployment. Bridges financing gaps for small/medium fleet operators that face capital constraints when installing charging hardware. Loans target both public and private L2 + L3 (DCFC) stations sited to serve fleet electrification and zero-emission freight goals. Complements the Zero Emission Vehicles Loan Program.

Historic preservation projects

Switch to all-electric equipment

Statewide commercial property assessed clean energy (C-PACE) financing administered by the Illinois Finance Authority through the C-PACE Open Market Initiative (a 501(c)(3) program administrator). Allows building owners to finance energy efficiency, renewable energy, water, resiliency, and EV charging improvements through a special property tax assessment with terms up to 40 years and up to 100% of project + closing costs covered. Non-recourse and assignable upon property transfer. Pre-built statewide standardized indenture lowers legal/financing costs vs negotiating C-PACE in each jurisdiction. Available in any county/municipality that has adopted the enabling IFA PACE Ordinance — current list includes Carroll, Jo Daviess, Kankakee, Rock Island, Sangamon, Tazewell counties plus Aurora, Decatur, Mount Prospect, Northbrook, Oswego, Springfield, and other municipalities.

Down payment and closing cost assistance

Affordable housing development

Illinois EPA program providing financing for brownfield assessment, investigation, and remediation. Critical for redevelopment of former industrial/manufacturing/gas station sites. Used in stacked finance structures with federal EPA Brownfields grants, NMTC, HTC, OZ, and Cook County 6b. Site Remediation Program (TACO standards) provides the regulatory framework — NFR Letter provides closure for buyer/lender comfort.

Owner-occupied housing rehabilitation

Federal EPA DERA State Clean Diesel Grant funds administered by Illinois EPA via Cooperative Agreements. IL receives a small base allocation each federal fiscal year (~$300K–500K, recent: $364,398 in FY21, $369,441 in FY20, $500,823 in FY19), then re-grants those funds to in-state fleet operators. Eligible technologies include EPA-verified retrofits, certified engine repowers, idle-reduction tech, aerodynamic devices, low-rolling-resistance tires, and early engine/vehicle/equipment replacement. One stream of the Driving a Cleaner Illinois program.

Illinois Distributed Generation Rebate for energy storage: $300 per kWh of installed storage capacity, paid upfront by ComEd or Ameren Illinois under the IL Adjustable Block / Illinois Shines storage track. Funded by IL ratepayers under CEJA — NOT affected by OBBBA. Applies to both standalone storage and solar-paired storage. Customer must be enrolled in Illinois Shines and meet utility interconnection requirements. STACK with federal 48E standalone storage ITC (30% through BOC 12/31/2033): a 100 kWh battery yields ~$30,000 utility rebate + 30% federal ITC on the installed cost.

Illinois' primary corporate income tax credit program for major capital investment projects. Authorized under 35 ILCS 5/236. Credit equals the incremental Illinois income tax withheld from new employees attributable to the project. Negotiated agreement between business and DCEO; subject to annual reporting and clawback if commitments not met. As of 2021, REV program (electric vehicle manufacturing) provides parallel structure with higher credit values for EV/battery/EV component manufacturing.

Multifamily up to 40 dwelling units. Eligible: window replacement, HVAC retrofit, insulation, programmable thermostats, lighting upgrades, ENERGY STAR appliances. Common-space and health-and-safety improvements capped at 20% of funding request. Applicants must register in GATA portal before applying via Amplifund.

Direct rebates for EV purchases from IL dealers

Illinois' broadest geographically-distributed state tax incentive program. Designated zones generally cover economically distressed areas (urban core, downtown commercial districts, industrial corridors, rural communities). Each zone administered by a local Zone Administrator (typically a county or municipality). Combination of automatic state benefits (sales tax exemptions on materials and machinery) and discretionary local benefits (property tax abatement schedule). Most heavily used incentive for commercial/industrial development projects in IL.

Low-interest financing for clean energy

Illinois state tax incentive designation under 35 ILCS 5/220-1 for major capital investment projects. Provides bundle of sales tax, utility tax, and investment tax credit benefits over the life of the designated facility. Often combined with federal/local incentive stack for headquarter relocations, large manufacturing facilities, data centers, and major industrial expansions.

Low-income housing tax credit allocation

Illinois state program targeting commercial redevelopment along the major Illinois rivers (Fox River — Aurora/Elgin, Mississippi — East St Louis/Quincy, Illinois River — Peoria/La Salle/Ottawa/Peru, Rock River — Rockford, Mississippi River corridor — Rock Island/Moline/East Moline, Kankakee River — Kankakee, Des Plaines/Illinois — Joliet). Combines historic preservation, environmental remediation, and enterprise zone benefits. Most heavily used for adaptive reuse of historic industrial and downtown buildings. State HTC (25% of QREs, uncapped within zone) stacks with federal HTC (20% of QREs) for combined 45% effective rate on qualified rehabilitation expenditures.

Solar for underserved communities

Illinois' ~$108M allocation of the VW Settlement Environmental Mitigation Trust (Appendix D), administered by Illinois EPA per the Revised Beneficiary Mitigation Plan (April 2022). Funds NOx-reduction projects with allocations: light-duty ZEV charging infrastructure (15%), all-electric public transit including Class 4-8 transit buses + commuter locomotives (32%), all-electric school buses (32%), all-electric Class 4-8 local freight trucks including municipal/refuse/dump/concrete-mixer/delivery/drayage (19%), administrative (2%). 80% of trust funds must be obligated within ten years of trust effective date.

Arts education programming

Capital grants for workforce training

Natural area protection

Open space acquisition

The Reimagining Energy and Vehicles in Illinois Act (REV Illinois, 20 ILCS 686/) is DCEO's flagship incentive to attract EV, EV-component, EV-charger, and renewable-energy manufacturing to Illinois. Credits may be claimed beginning January 1, 2025 and continue into 2026. Provides negotiated income-tax-withholding credits, training credits, utility tax exemptions, and an investment tax credit, with benefit terms of 20–30 years. REV is the EV/clean-energy successor (parallel to EDGE) with higher per-job values for EV and renewables manufacturing.

Tax credits for EV manufacturing investment in Illinois

Emergency rental assistance

Tourism development

State matching for federal grants

Capital improvements, equipment, property

Grid modernization including EV integration

Snowmobile trail development

Loan participation and credit enhancement program through Climate Bank Finance (CBF), the climate-focused subsidiary of the Illinois Climate Bank. SSBCI 2.0 (launched 2023) lowers borrower interest rates to 1% (SEDI/Very Small) or 2% per annum and reduces lender risk by participating alongside private lenders. Designed to channel private capital into clean energy + sustainability projects while supporting socially and economically disadvantaged businesses and small businesses across Illinois. Borrowers apply through their existing banking relationship — if their lender is not yet a CBF participating lender, IFA will help onboard the lender. Funded by the American Rescue Plan Act of 2021 and administered by U.S. Treasury via Illinois Finance Authority designation under CEJA.

EV charging, MD/HD charging, transit, fleets, school buses

Diesel replacement and EV infrastructure

Waste management improvements

Loan program funded by the U.S. EPA Climate Pollution Reduction Grants designed to bridge the financing gap for small- and medium-sized fleet operators converting to zero-emission vehicles. Especially targeted at borrowers who cannot benefit from tax credits or lack access to traditional commercial loans. May include third-party ownership or lease-to-buy structures for tax-credit-ineligible borrowers. Helps fleets electrify before 45W (Commercial Clean Vehicle Credit) was terminated by OBBBA on 9/30/2025.

EV charging incentives and TOU rates

Residential L2 charger rebates

L2 and DCFC charger rebates

Standard incentives for efficiency improvements. LED retrofit: $0.80/watt reduced. NLC fixtures: $1.00/watt. Occupancy sensors: $0.25/watt controlled. Custom projects: $0.18/kWh saved.

2026 RESERVATIONS LIMITED TO LIC/EIEC COMMUNITIES: ComEd reopened Make-Ready reservations in Feb 2026 but only projects located in a Low-Income/Equity Investment Eligible Community (LIC/EIEC) can reserve 2026 funds; projects outside LIC/EIEC are not eligible to reserve. Funds held 6 months per reservation or until Dec 31 2026. Rates: L2 base $5,333/port (10-port max), EIEC/LIC $8,000/port; DCFC base $667/kW (min 50kW), EIEC/LIC $1,000/kW; annual cap $1M/premises. For non-LIC/EIEC clients: NEVI Round 4 is OPEN (~$30M statewide, any IL location, closes 7/20/2026); CEJA EV Charging Round 4 still not announced.

Public sector kicker: 40% additional incentive when final invoice + application submitted by 2026-09-30. Private sector kicker: 30% by 2026-04-30 (PASSED) or 20% by 2026-09-30. Cap: $20K/customer ($30K if April deadline hit). Stackable with Select Communities + Made in Illinois for up to 60% private / 70% public total. NOT for facilities >=500 kW peak demand.

Electric fleet vehicle rebates by class. Amounts increased Jan 1 2026.

Real-time pricing with EV owner bonuses

Public safety and clean transportation

Level 2 charger installation rebate. Amounts increased Jan 1 2026 as part of $70M EV rebate expansion.

TOU rates and make-ready rebates

Residential and commercial TOU rates

Residential L2 charger rebates

Financing for energy-efficiency upgrades repaid directly through the customer's utility bill, at a fixed utility-bill charge intended to be offset by energy savings, with no separate lender relationship. In Illinois this runs primarily through the statewide Small Business / Multi-Family Energy Efficiency Loan Program (administered by Energy Finance Solutions, il.energyfinancesolutions.com), whose participating utilities include ComEd, Ameren Illinois, Nicor Gas, North Shore Gas, and Peoples Gas — small-business customers (peak demand under 100 kW) can borrow $500 to $150,000 at roughly 7.49% fixed over 1 to 10 years, repaid on the utility bill with no prepayment penalty. Ameren Illinois also runs a separate residential on-bill program (around 8.99%). Important nuance: for SMALL BUSINESS the on-bill loan flows through that statewide program (ComEd-side and the gas utilities), while Ameren own-branded on-bill is residential-only — Ameren small-business projects use rebates plus direct-install instead. Confirm the specific utility current program terms before presenting to a client.