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Tier 2 Investment

Who is eligible:  This tier includes projects addressing the industry needs listed in 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 five years.

  • EV component manufacturers, renewables, or green steel manufacturers that will make at least $300 million in capital investment and create over 150 jobs within five years.

  • Manufacturers that convert or expand existing facilities to allow for production in the EV, renewables sectors (such as wind, solar, green hydrogen), or nuclear or green steel, 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 five 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, with one possible renewal, meaning benefits can last up to 30 years.

  • Exemption on retailers' occupation tax paid on building materials for up to five years
  • Exemption on state utility tax for electricity and natural gas for up to 30 years (or the life of the agreement)
  • Exemption on telecommunication excise tax and ICC administrative charge waived
  • 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% 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 six years before the time of the application or will be retired or have service significantly reduced within six years following the time of the application;
    • A coal mine that was closed or had operations significantly reduced within six years before the time of the application or is anticipated to be closed or have operations significantly reduced within six 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:

  • Annual reporting is required for all approved REV Illinois recipients. This will include payroll reporting, sexual harassment attestations, vendor and workforce diversity reporting, and recycling contracts requirements.

  • Companies must ensure competitive wages for full-time employees.

  • A project labor agreement must be secured if the company plans to apply for construction credits. 

  • Companies must receive a green building certification within two years of the project being “placed in service,” meaning the jobs and capital investment thresholds are met.  

  • 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.