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Another move to beef up the state’s EV incentive programs

Wednesday, Dec 14, 2022 - Posted by Rich Miller

* Stellantis North America COO Mark Stewart talked earlier this week about the company’s plans for its Jeep facility in Belvidere, which is scheduled to be idled in February. The company, he said, is “continuing to look at what we can do to repurpose that facility — but it’s idle, not closed.”

And now all of a sudden, a new electric vehicle bill is being floated. Here’s Greg Hinz

And this time, other types of businesses would be in line for more help, too, including firms in the clean energy business and those seeking Economic Development for a Growing Economy, or EDGE, payroll tax credits.

Under the measure, expected to be put to a vote in the General Assembly’s January lame-duck session, Gov. J.B. Pritzker would get the huge “deal-closing fund” that other governors have. Insiders say the lack of such a fund recently cost the state a battery plant which, instead, was won by Michigan. […]

Beyond that, according to a fact sheet and a draft bill shared with legislative leaders, those seeking EDGE grants would no longer have to meet a “but for” requirement showing that they would not have created jobs here without assistance.

Illinois Chamber of Commerce CEO Todd Maisch told Hinz that other states have used the “but for” provision against Illinois. “They say if you come here, we can guarantee you these benefits” without attaching any strings.

* From the governor’s office…

The administration has worked closely with the business community to support legislation aimed at expanding economic development throughout the state. A closing fund would make Illinois more competitive in efforts to recruit new business investments in Illinois and would allow us to compete with our neighbors in the Midwest that have closing funds available.

Updating the language used in the EDGE program is a longstanding ask from the business community and this administration is committed to working with stakeholders to reduce red tape and attract even more jobs to the state. The Governor looks forward to discussing these priorities with the General Assembly and moving them forward.

Pritzker has floated the possibility of a $1 billion closing fund.

* The state has approved several incentives already. This bill, for instance, ended up zipping through both chambers during veto session

Legislation introduced in Springfield today that quickly passed a Senate committee would both widen and extend to up to 30 years payroll tax credits for those who work here under the existing Reimagining Electric Vehicles in Illinois law, known as the Rev Illinois Act.

Other provisions would loosen the definition of an EV worker and appear aimed at existing automakers in Illinois, especially Stellantis and Ford. They have huge conventional auto assembly plants in Illinois that could be converted to EV production, but likely only after years of preparation and work.

Aides to Gov. J.B. Pritzker were not immediately available to answer questions such as whether Rev Illinois has failed to produce the influx the state wanted, as a steady stream of new battery makers, suppliers and assembly plants alike have gone to Michigan, Ohio, Georgia and other states, not Illinois.

       

49 Comments
  1. - Anon E Moose - Wednesday, Dec 14, 22 @ 10:15 am:

    How about making the registration fee for EVs the same as for gas vehicles? Not sure why EVs have to pay more for yearly registration.


  2. - Anthony - Wednesday, Dec 14, 22 @ 10:16 am:

    –as a steady stream of new battery makers, suppliers and assembly plants alike have gone to Michigan, Ohio, Georgia and other states, not Illinois. –

    You know, there always just seems to be a trend.


  3. - Lost in Place - Wednesday, Dec 14, 22 @ 10:18 am:

    =How about making the registration fee for EVs the same as for gas vehicles? Not sure why EVs have to pay more for yearly registration. =

    They don’t pay MFT but they still utilize the roads.


  4. - Steve - Wednesday, Dec 14, 22 @ 10:21 am:

    I imagine they pay more in license registration so as to contribute towards road maintenance since they aren’t generating gas tax dollars


  5. - Dysfunction Junction - Wednesday, Dec 14, 22 @ 10:21 am:

    Hmmm… guess you can’t always believe what you read in the paper, or what the so-called experts say. Last year, the buzz was that the Belvidere plant was to be re-tooled to produced the new electric Charger and Challenger. https://www.chicagobusiness.com/manufacturing/ev-dodge-challenger-charger-models-be-built-belvidere-sources-say

    Even the Canadians (who produce the gas-guzzling versions) were preemptively mourning the loss. https://www.cbc.ca/news/canada/windsor/auto-industry-automotive-news-canada-brampton-stellantis-charger-challenger-electric-vehicles-1.6297958


  6. - supplied_demand - Wednesday, Dec 14, 22 @ 10:22 am:

    ==Not sure why EVs have to pay more for yearly registration. ==

    I think it’s because the gas tax funds our roads. Until we find another funding source, that will be hurt by more and more EVs using less and less gas.


  7. - Hopper - Wednesday, Dec 14, 22 @ 10:24 am:

    I like the administration constantly pitching legislation to promote business development and not just sit back and watch. This is what happens when you tap an accomplished legislator and put them in a leadership role in the administration.


  8. - Just Me 2 - Wednesday, Dec 14, 22 @ 10:26 am:

    It’s a “tax loophole” unless it is for something liberals love like Hollywood or EVs, then it is an “incentive.”


  9. - Oswego Willy - Wednesday, Dec 14, 22 @ 10:36 am:

    ===liberals===

    It’s a good thing you’re not making political like those liberals, amirite?

    You’d think wanting to have an opportunity to be on the cutting edge of new technology and having a work force ready to lead the country too…

    But “liberals”, … am I rite?


  10. - Anonymous - Wednesday, Dec 14, 22 @ 10:40 am:

    It’s a “tax loophole” unless it is for something Conservatives love like Oil or Sugar, then it is an “incentive”.

    Corrected.


  11. - Jerry - Wednesday, Dec 14, 22 @ 10:41 am:

    Sorry. 1040am is me. I’ll take 2 days of detention.


  12. - Josh Evans - Wednesday, Dec 14, 22 @ 10:41 am:

    I want to see employers come to Illinois to offer competitive wages and benefits to employees.

    Look, if we can advance these incentives, great.
    If we can come up with state resources for a ‘closing fund,’ and that helps, ok good.

    Please, let’s not forget we have consent decrees in human services in which the state remains out of compliance for going on 5 years - because we don’t put enough resources into disability services.

    I post the following article from the Rockford Register Star given proximity to Belvidere:

    https://www.rrstar.com/story/opinion/columns/2022/12/13/your-turn-we-are-in-crisis-and-we-cant-cut-our-way-to-a-solution/69672980007/?fbclid=IwAR3QF7ODlT2MqORRxL5-z_EzhGRIALgsFZcsylA-kqBlk_HOys02aLJzGQw


  13. - Demoralized - Wednesday, Dec 14, 22 @ 10:51 am:

    ==unless it is for something liberals ==

    Some people will complain about anything.

    And the fact that you used the word “liberals” pretty much says all we need to know about you and your reception to anything that would ever be done by this Administration.


  14. - Captain Obvious - Wednesday, Dec 14, 22 @ 10:53 am:

    Rivian is also in distressed state. 1.7 B in losses last quarter. They are struggling to deliver product. Will the state offer “incentives” to get them off life support?


  15. - Rich Miller - Wednesday, Dec 14, 22 @ 10:57 am:

    ===get them off life support? ===

    They raised plenty of dough.


  16. - Donnie Elgin - Wednesday, Dec 14, 22 @ 11:17 am:

    “deal-closing fund”

    Union states like IL may use incentives like the proposed “deal-closing fund”; other states have RTW. They both appeal to certain types of business investment and manufacturers. IL may get some of the EV plants– while southern RTW states will keep getting the large foreign auto plants.
    https://uniontrack.com/blog/foreign-manufacturing


  17. - levivotedforjudy - Wednesday, Dec 14, 22 @ 11:20 am:

    Glad this is happening. Unlike other state functions, economic development is a competition and IL was apparently losing. This makes it a stronger competitor.


  18. - Oswego Willy - Wednesday, Dec 14, 22 @ 11:20 am:

    If Illinois’ taxes are too high to bring business into Illinois as it’s bemoaned by those non “liberals”… why would it matter if any company that can show worth in investing to get support?

    Is it because EV is seen as a “Democrat Thing”… unless it’s Elon Musk, then it’s “genius”

    So if one can explain how Illinois isn’t competitive with high taxes for business… and be against helping a cutting edge company…


  19. - JS Mill - Wednesday, Dec 14, 22 @ 11:22 am:

    =Will the state offer “incentives” to get them off life support?=

    Sheesh, spelunking always.

    Maybe take a trip and sit along I 39 and watch the Rivians being trucked north. They seem to be doing fine.


  20. - Excitable Boy - Wednesday, Dec 14, 22 @ 11:28 am:

    - Is it because EV is seen as a “Democrat Thing” -

    They’d better get used to it, pretty soon it’s going to just be an economics thing. My wife works for a huge international commercial vehicle manufacturer, and they’ve been working on the transition away from diesel for a few years now, it’s coming whether or not conservatives like it.


  21. - Anon E Moose - Wednesday, Dec 14, 22 @ 11:28 am:

    “They don’t pay MFT but they still utilize the roads.”

    Then charge a tax for utilizing roads. Why punish people for purchasing non-gas vehicles if that is what you’re trying to encourage?


  22. - sulla - Wednesday, Dec 14, 22 @ 11:38 am:

    “Please, let’s not forget we have consent decrees in human services in which the state remains out of compliance for going on 5 years - because we don’t put enough resources into disability services.”

    Tax revenues come from economic growth. If you want the government to fund stuff, you need paychecks, homeowners and businesses to tax.

    For decades, Illinois has been content to languish with a really weak state economic development toolbox compared to other states. A closing fund would be a step forward to make us more competitive.


  23. - Lurker - Wednesday, Dec 14, 22 @ 11:40 am:

    “…Rivians being trucked…”

    I like that. Even if the pun was unintended, I’m proclaiming it genius.


  24. - Demoralized - Wednesday, Dec 14, 22 @ 11:47 am:

    ==Then charge a tax for utilizing roads==

    They do. It’s called the motor fuel tax. And you aren’t paying it because you don’t get fuel. Hence why you have to pay more for registration. So, you are being expected to pay your fair share with your higher registration fee.


  25. - Demoralized - Wednesday, Dec 14, 22 @ 11:48 am:

    ==Why punish people ==

    And you aren’t being punished. Pay the fee to use the roads and stop whining about it.


  26. - thisjustinagain - Wednesday, Dec 14, 22 @ 12:00 pm:

    EV owners have to help pay for the roads they drive on. Since they don’t pay MFT (or as much using hybrids in their current designs), the State has to make up the revenue somehow. So EVs plates get charged more, although short-term it seems counterproductive to supporting the move to EVs. And it’s an object lesson for EV owners. Just like your vehicles aren’t ‘pollution free’ or saving the planet, you don’t get a free ride on public roads either.


  27. - JS Mill - Wednesday, Dec 14, 22 @ 12:15 pm:

    =while southern RTW states will keep getting the large foreign auto plants.=

    Ummm…you may want to review your research.

    BTW- Boeing just said they are adding 2,600 jobs here. So much for RTW.

    =Even if the pun was unintended, I’m proclaiming it genius.=

    Even if tongue in cheek I will take that :-)


  28. - Timekeeper - Wednesday, Dec 14, 22 @ 12:27 pm:

    The governor is undoing reforms implemented by Democrats after George Ryan handed Boeing $50M to relocate 500 white collar jobs. Jobs that did not go to Illinoisans, but people who moved here from Seattle.

    We need accountability and transparency for corporate taxpayer subsidies. What is the alternative accountability language Pritzker is proposing?


  29. - Timekeeper - Wednesday, Dec 14, 22 @ 12:30 pm:

    Put another way: what will be left in the statute to prevent some future governor from offering a future Ken Griffin or Sam bankman $50-$100M to stay in Illinois?


  30. - Just Me 2 - Wednesday, Dec 14, 22 @ 12:30 pm:

    Hey, I believe in incentives. I think that is the way for the State to attract businesses and investment. I’m 100% pro-incentives.

    My issue is liberals/progressives/democrats always call them tax loopholes. However, if it is something “cool” or “sexy” like electric vehicles or film production then they magically change their tune and see the value.


  31. - Grandson of Man - Wednesday, Dec 14, 22 @ 12:43 pm:

    Da Mare Daley 1 had an open door to business and labor, and was able to get big economic developments done (not excusing his shortcomings). It’s probably what many want, cooperation and progress. One can secure labor rights while still giving business incentives.


  32. - MoralMinority - Wednesday, Dec 14, 22 @ 12:46 pm:

    While we’re at it why do those Amish get to use the roads for free with their horses and buggies? License plates for buggies? How about bicycles? Pedestrians?


  33. - Oswego Willy - Wednesday, Dec 14, 22 @ 12:51 pm:

    ===How about bicycles? Pedestrians?===

    The adults recognize that EV and standard gas and diesel vehicles damage and weaken infrastructure with their usage. The fuel for the vehicles differ.

    Are you equating pedestrian use or bicycle use to vehicles?

    That’s an odd take


  34. - Demoralized - Wednesday, Dec 14, 22 @ 12:56 pm:

    ==While we’re at it why do those Amish get to use the roads for free with their horses and buggies? ==

    I hope that was snark. Because if it wasn’t that can be added to the list of dumbest comments ever made.


  35. - Rich Miller - Wednesday, Dec 14, 22 @ 12:58 pm:

    Don’t feed the trolls and move on.


  36. - The Magnificent Purple Walnut - Wednesday, Dec 14, 22 @ 1:00 pm:

    Those Rivians On I-39 are not being dropped off in my neighborhood. Prices start somewhere in the $67,000 to 79,000 range. (from what I found on my friend Google) Range on base model of up to 314 miles. Unknown reliability.


  37. - Rich Miller - Wednesday, Dec 14, 22 @ 1:01 pm:

    ===Those Rivians On I-39 are not being dropped off in my neighborhood===

    And your point?


  38. - DuPage - Wednesday, Dec 14, 22 @ 1:01 pm:

    Yes, these incentives are exactly what is needed.


  39. - PublicServant - Wednesday, Dec 14, 22 @ 1:02 pm:

    ===I hope that was snark. Because if it wasn’t that can be added to the list of dumbest comments ever made.
    ===

    Must be a pretty long list by now. I don’t see an end in sight either.


  40. - Jibba - Wednesday, Dec 14, 22 @ 1:06 pm:

    ==democrats always call them tax loopholes==

    I’d call any of them loopholes if they do not provide a net gain in tax money over the medium to long term. That’s why accountability and duration are highly important. Nothing should be given that does not pay for itself and lead to a lot more through time.


  41. - DuPage - Wednesday, Dec 14, 22 @ 1:09 pm:

    @- supplied_demand - Wednesday, Dec 14, 22 @ 10:22 am:

    ==Not sure why EVs have to pay more for yearly registration. ==

    ===I think it’s because the gas tax funds our roads. Until we find another funding source, that will be hurt by more and more EVs using less and less gas.===

    The “another funding source” will probably involve a “per mile” fee.


  42. - DuPage - Wednesday, Dec 14, 22 @ 1:21 pm:

    @- MoralMinority - Wednesday, Dec 14, 22 @ 12:46 pm:

    ===While we’re at it why do those Amish get to use the roads for free with their horses and buggies? License plates for buggies? How about bicycles? Pedestrians?===

    They don’t even require 40-Ton giant truck-cranes to get license plates, so I don’t expect there to be anything on a horse and buggy.


  43. - Dan Johnson - Wednesday, Dec 14, 22 @ 1:34 pm:

    Congress should make these industry-specific subsidies illegal. States ‘competing’ for how little they can tax profitable manufacturing companies to locate in a particular area is the wrong policy.

    Or, of course, states could agree to make these illegal. But when Congress kicks off with a huge subsidy to a particular industry (like CHIPS or EV) that ought to be the end of the subsidies.


  44. - Anon E Moose - Wednesday, Dec 14, 22 @ 1:55 pm:

    Demoralized, why would I pay a motor fuel tax when I don’t use any fuel?


  45. - Demoralized - Wednesday, Dec 14, 22 @ 1:58 pm:

    == why would I pay a motor fuel tax when I don’t use any fuel==

    You shouldn’t. That’s why you pay a higher fee to register your car. You have to pay your fair share to use the roads also since the state isn’t capturing money from you via the tax.


  46. - Anon E Moose - Wednesday, Dec 14, 22 @ 2:10 pm:

    Demoralized, do you not see how that is a disincentive if you’re trying to encourage people to move to non-gas vehicles?


  47. - Rich Miller - Wednesday, Dec 14, 22 @ 2:13 pm:

    ===Demoralized, do you not see===

    What I see is your attempt at hijacking this post. Enough, already.


  48. - Anon E Moose - Wednesday, Dec 14, 22 @ 2:18 pm:

    Sorry Rich. Point taken.


  49. - Rich Miller - Wednesday, Dec 14, 22 @ 2:28 pm:

    Smooches


Sorry, comments for this post are now closed.


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