Tier 2 Investment

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 or renewables manufacturers  that will make at least $300 million in capital investment and create over 150 jobs within 5 years.
• Manufacturers that convert or expand existing facilities to allow for production in the EV or renewables sectors, with $100 million in capital investment and creation of at least 50 new jobs (or new jobs equivalent to 10% of their statewide baseline, whichever is less) within 5 years.
• Manufactures that convert or expand from traditional manufacturing to EV manufacturing, EV component parts manufacturing, renewable energy manufacturing, or EV power supply equipment manufacturing, with $500 million in capital investment and the retention of at least 800 jobs within 5 years. Applicants must enter into an agreement before June 1, 2024.

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, with one possible renewal meaning benefits can last up to 30 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:
  • 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
• 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