Funding Resources

IACT continuously surveys available resources to support the adoption of alternative renewable fuels and technologies. Listed below is a compilation of funding opportunities to increase accessibility across diverse populations.

IACT has made a specific effort to include sources that serves various geographic areas across the state of Illinois; however, please note this page is not exhaustive. Should you see any programs omitted below, please contact us at info@il-act.org

Click HERE to download the latest IACT Grant Funding Fact Sheet.

1/11/23 NOTICE: The current number of applications that have been received by the Illinois EPA seeking a rebate under the Electric Vehicle Rebate Program has surpassed the amount of available funding. Applicants that qualify as “Low-Income” per the guidelines are prioritized for rebate issuance and may continue to submit applications through the application deadline of January 31, 2023. As specified in the law, program rules, IEPA EV Rebate website, and FAQ, rebate applications are subject to the availability of funds. A third cycle for rebate applications will open when additional funding becomes available.

Illinois residents that purchase a new or used all-electric vehicle from an Illinois licensed dealer will be eligible for an Illinois' Electric Vehicle Rebate in the amounts set forth below.

Rebate applications are being accepted between November 1, 2022 and January 31, 2023.

The rebate application must be postmarked within 90 days of the vehicle purchase date AND the rebate application must be postmarked on or before the end of the rebate cycle, January 31, 2023.

  • A $4,000 rebate for the purchase of an all-electric vehicle that is not an electric motorcycle.
  • A $1,500 rebate for the purchase of an all-electric motorcycle.

Please visit the Illinois Environmental Protection Agency’s website for more information, including eligibility requirements and application instructions.

Incentives are available to Illinois propane customers who purchase a new propane vehicle. Any propane vehicle that is registered and operated in the state of Illinois is eligible for up to $4,000 for the purchase of a new propane vehicle or cost of the conversion if less than $4,000.

Learn more on the Illinois Propane Gas Association website.

U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced that USDA is accepting applications for $100 million in grants to increase the sale and use of biofuels derived from U.S. agricultural products. Click here to continue reading the press release.

The purpose of the HBIIP is to increase significantly the sales and use of higher blends of ethanol and biodiesel by expanding the infrastructure for renewable fuels derived from U.S. agricultural products. The program is also intended to encourage a more comprehensive approach to market higher blends by sharing the costs related to building out biofuel-related infrastructure.

FUNDING NOW AVAILABLE: The November 2022 application period is now closed. Please visit the HBIIP webpage to sign up for updates regarding future funding opportunities, sign up for webinars, and learn more about grant program details

The Illinois Environmental Protection Agency (Illinois EPA) has been designated as the lead agency to administer funds allocated to Illinois from the Volkswagen Environmental Mitigation Trust (Trust). The Trust was established by Appendix D of the VW Settlement. Illinois’ initial allocation of funds is approximately $108 million to be used to fund mobile source diesel emission reduction projects. The funds are to be used for projects that reduce emissions of nitrogen oxides in Illinois.

Visit the Illinois EPA website to learn more.

Driving a Cleaner Illinois is the Illinois EPA’s grant program developed to distribute funding for various types of diesel emission reduction projects involving on-road vehicles, off-road equipment, and electric charging. The Driving a Cleaner Illinois Program receives funding from a variety of sources, including the Volkswagen Environmental Mitigation Trust, U.S. Environmental Protection Agency’s Diesel Emission Reduction Act (DERA) Program, and Federal Highway Administration’s Congestion Mitigation and Air Quality Improvement (CMAQ) Program.

Through the Driving a Cleaner Illinois program, The Illinois EPA is making Volkswagen Settlement funding available to fund the replacement of existing diesel school buses with new all-electric school buses located and operated in any of the three priority areas outlined in the Beneficiary Mitigation Plan (BMP). The application period closes at 5:00 PM on September 5, 2023.

Click here for more info.

The Diesel Emissions Reduction Act (DERA) Program funds grants that upgrade or replace non-road and on-highway diesel vehicles. Illinois Alliance for Clean Transportation Member, the American Lung Association, provides application assistance for eligible fleets. Funding through this program is not guaranteed and depends upon the availability of funding from the US Environmental Protection Agency. For more information, contact Angela Tin (angela.tin@lung.org) or Shannon Haines (Shannon.haines@lung.org).

For more information on the National Clean Diesel campaign, visit www.epa.gov/cleandiesel

Through December 31, 2023, a sales and use tax of 6.25% applies to 100% of the proceeds from the sale of fuel blends containing 10% ethanol (E10) and fuel blends containing between 1% and 10% biodiesel (B1-B10). If at any time the sales and use tax is 1.25%, the tax on biodiesel blends will apply to 100% of the proceeds of sales.

Sales and use taxes do not apply to the proceeds from the sale of biodiesel blends containing between 11% and 99% biodiesel (B11-B99) or fuels containing between 70% and 90% ethanol (E70-E90). Taxes will apply to 100% of the proceeds from the sale of biodiesel and ethanol fuel blends made after December 31, 2023.

(Reference 35 Illinois Compiled Statutes 120/2-10, 105/3-10, and 105/3-44)

The U.S. Department of Energy’s Alternative Fuels & Advance Vehicles Data Center is your source to finding the federal and state incentives and laws surrounding air quality, fuel efficiency, and alternative fuels and advanced transportation technologies.

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IACT, formerly known as Chicago Area Clean Cities, is a voluntary, locally based coalition dedicated to reducing emissions from the transportation sector.

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