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Alternative Fuel Vehicle (AFV) and Alternative Fuel Rebates

The Illinois Alternate Fuels Rebate Program (Program) provides a rebate for 80% of the incremental cost of purchasing an AFV (up to $4,000), 80% of the cost of converting a conventional vehicle or a hybrid electric vehicle to an AFV using a federally certified conversion (up to $4,000), and for the incremental cost of purchasing alternative fuels. Eligible fuels for the program include E85, fuel blends containing at least 20% biodiesel (B20), natural gas, propane, electricity, and hydrogen. A vehicle may receive one rebate in its lifetime. Only AFVs or conversion systems purchased from an Illinois-based company or vendor are eligible, except if the vehicle is a heavy-duty specialty vehicle that is not sold in Illinois, and only hybrid electric vehicles fueled with alternative fuels are eligible. To be eligible for a fuel rebate, the entity or individual must purchase the majority of E85 or biodiesel fuel from Illinois retail stations or fuel suppliers. The E85 fuel rebate is up to $450 per year (depending on vehicle miles traveled) for up to three years for each flexible fuel vehicle that uses E85 at least half the time. The biodiesel fuel rebate (for B20 and higher blends) is for 80% of the incremental cost of the biodiesel fuel, as compared to conventional diesel. The Program is part of the Illinois Green Fleets Program and is open to all Illinois residents, businesses, government units (except federal government), and organizations located in Illinois. (Reference House Bill 6047, 2010, and 415 Illinois Compiled Statutes 120/30)