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Tier 1 Investment

REV Tier 1 Eligibility, Credits and Exemptions

Who is eligible: Manufacturers of electric vehicles, EV component parts, battery lifespan solutions, battery raw materials refining solutions and charging stations and/or companies that manufacture or assemble equipment, systems or products used to produce renewable or nuclear energy, and products or components used for energy conservation, storage, or grid efficiency purposes. Companies must make a capital investment of at least $2.5 million and create at least 50 jobs (or the equivalent of 10% of global employment) within four years.

Credits and exemptions available:

  • A tax credit equal to 75% of the income tax withholdings of new jobs created or retained jobs in the state that can be immediately collected and retained by the company. 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 with an option for one renewal for a total package up to 20 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.
  • 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.
  3. 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 if construction credits are requested

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