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Incentives and Funding

Illinois Alternative Fuels Rebate Program

The Illinois Alternate Fuels Rebate Program started in 1998 and over $2.3 million in rebates have been issued through 2004. All businesses, local governments, organizations, and individuals in Illinois are eligible to apply for a rebate. Rebates may be issued to any applicant for up to 300 vehicles. The only entity excluded from the program is the federal government.

There are three types of rebates from which applicants may choose one type of rebate per vehicle: (1) A rebate for the incremental cost of an alternate fuel vehicle purchased from a dealership or similar vendor (Vehicle Rebate), (2) a rebate for the cost of the conversion of an existing vehicle to operate with an alternate fuel (Conversion Rebate), and (3) a rebate for the incremental cost of purchasing alternate fuels (Fuel Rebate). For all rebates, the alternate fuel vehicle, conversion system, or alternate fuel must be purchased from an Illinois company or vendor.

Eligible fuels for the program include E-85, Biodiesel (at least 20 percent blend or B-20), natural gas, propane, electricity, and hydrogen. To be eligible, a vehicle must be a licensed, on-road vehicle and be able to be legally driven on public roads. Gasoline-electric hybrid vehicles (i.e., Toyota Prius, Toyota Highlander, Honda Civic, Honda Accord, Ford Escape, Mercury Mariner) are not defined as an alternate fuel vehicle and are not eligible for a rebate since these vehicles are refueled with gasoline.

See the rebate website at www.illinoisgreenfleets.org/fuels for more information, including rebate application forms.

IL Clean Diesel and IL Clean School Bus Programs

For more information on the Illinois Clean Diesel and Illinois Clean School Bus Programs please visit:
http://www.illinoisgreenfleets.org/
There you will information on both programs including Guidelines, Application Forms, as well as information on current funding.

Federal and State Incentives

For information on Federal and State Incentives related to alternative fuels and vehicles, air quality, fuel efficiency, and other transportation-related topics.
www.afdc.energy.gov/afdc/laws/
The Alternative Fuels & Advanced Vehicles Data Center allows you to search all incentives and laws, view tables on incentives and laws and, read key legislation related to alternative fuels and advanced transportation technologies.