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* Greg Hinz at Crain’s…
With the American auto industry now rushing toward an electric-powered future, the Pritzker administration is moving to embellish tax and other incentives in hopes of better competing in a once-in-a-generation opportunity to expand a key growth industry here.
Officials have begun talking to industry leaders and some lawmakers about putting together a package that could be presented to the Illinois General Assembly as soon as its October veto session. […]
Illinois appears to be out of the running for a second American Rivian plant—the company has told officials they want to diversify their labor pool—but is making a major bid for a Samsung battery factory, along with three or four other states, reliable sources said.
The Samsung winner “likely will come down to dollars and cents,” said one well-placed insider. In other words, the state with the best incentive package is the likely winner.
The governor’s office appears to be taking this idea seriously.
The head of the Illinois Manufacturers’ Association is calling on lawmakers to get serious about the electric vehicle business.
Mark Denzler, president and CEO of the IMA, says there’s a chance right now for the state to position itself to compete in a growth industry.
“Auto manufacturers are having those discussions today, and they were having them a month ago, about where to locate and what facilities to retool,” Denzler said. “We have the opportunity to invest in some of these facilities in Illinois and be part of that movement toward electric vehicles.”
Denzler says a major hurdle in the efforts to attract the attention of auto manufacturers is the lack of tools available in the recruitment effort.
“Illinois’ incentives oftentimes lack what neighboring states do,” Denzler said. “We have the EDGE credit, which can be effective, but a number of other states provide cash up front, or land, or other types of incentives that we don’t have available in Illinois.”
He’s calling on state lawmakers to take steps during the fall veto session to remain competitive with surrounding states that might also be interested in these facilities.
“The fact is that other states have moved ahead of us and Illinois has not been doing anything to really attract them or change any incentive packages,” Denzler said. “We’re working hopefully to enhance some of the incentives, but we also have to address some of the longstanding concerns that the business community has.”
posted by Rich Miller
Monday, Aug 30, 21 @ 9:01 am
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I’m generally down on the efficacy of using incentives to lure employers to the state. But if we’ve decided that’s what we’re going to do, it’s better to give those incentives to an industry of the future than an Amazon warehouse.
Comment by Benjamin Monday, Aug 30, 21 @ 9:26 am
Denzler and IMA aren’t shy about asking for handouts. But everyone else? Pull yourselves up by your bootstraps.
Comment by PublicServant Monday, Aug 30, 21 @ 9:32 am
Denzler is a responsible and informed advocate.
He knows there’s a lot going for Illinois. Relocation and new factory decisions are usually made much more comprehensively than for short term cash flow. We often win versus other states’ incentives, especially in the hi-tech world.
Comment by walker Monday, Aug 30, 21 @ 9:37 am
“But everyone else? Pull yourselves up by your bootstraps.”
Yep. Those railing the most against big Gov are usually the first ones at the trough.
If it wasn’t for government spending you wouldn’t be able to plug in an air conditioner south of the Mason Dixon.
Comment by Flyin' Elvis'-Utah Chapter Monday, Aug 30, 21 @ 9:43 am
While we’re on the subject of the electric-powered future, it might be time to stop penalizing Illinoisans who buy e-cars with higher vehicle registration fees…
Comment by LakeCo Monday, Aug 30, 21 @ 9:58 am
Get moving this is an evolving industry with lots of $$ at stake…
Rivian Files for IPO, Seeking About $80 Billion Valuation
Comment by Donnie Elgin Monday, Aug 30, 21 @ 10:14 am
“While we’re on the subject of the electric-powered future, it might be time to stop penalizing Illinoisans who buy e-cars with higher vehicle registration fees…”
It’s not a penalty. It’s being fair. People who drive electric vehicles don’t pay the gas tax that we use for the infrastructure.
Comment by Mr. Green Genes Monday, Aug 30, 21 @ 10:19 am
Maybe I’m wrong but we may have dodged a bullet with Rivian. So far I think they’ve only produced one car, the one that took Bezos to the launch pad. I just don’t trust them. So many years in business without producing anything.
Comment by Honeybear Monday, Aug 30, 21 @ 10:23 am
Rivian got a massive contract to build Amazon delivery vehicles. I think they bought themselves a little time to build the cool electric pickup and suv.
Comment by Ok Monday, Aug 30, 21 @ 10:26 am
We should start to have a good idea whether Rivian is going to be a real competitor with Tesla, a scam like Nikola, or somewhere in between within next six-nine months.
Rivian is supposed to start delivering their pre-orders in January 2022. If they were to fail to start delivering in first quarter next year, then it may be fair to become concerned depending on how reasonable their excuse is.
On the optimistic look, if they successfully launch in Q1 and the federal infrastructure bill gets passed with significant EV incentives, the likelihood of a bright future starts gaining luster
Comment by all luck Monday, Aug 30, 21 @ 10:55 am
I am optimistic about Rivian - but talking to people who have been inside the building there is a lot left to get to the scale they are talking about.
I’d love for Illinois to continue to lead here… Lots of good places for factories - Metro East, Rockford, Quad Cities. So offer up the incentives and see what you can land.
Comment by Cool Papa Bell Monday, Aug 30, 21 @ 11:13 am
==Lots of good places for factories - Metro East, Rockford, Quad Cities. So offer up the incentives and see what you can land.==
What about Springfield? Emperor, maybe you better get it in gear and offer some incentives and bring some manufacturing jobs to the Capital City. (Which will diversify the local workforce from being more state, medical field, and service economy-oriented to adding some manufacturing jobs back to the city, which has mostly been absent since Fiat Allis closed over 30 years ago).
Comment by NonAFSCMEStateEmployeeFromChatham Monday, Aug 30, 21 @ 11:19 am
Absolutely…let’s get this done…
Comment by Loop Lady Monday, Aug 30, 21 @ 11:38 am
==What about Springfield? Emperor, maybe you better get it in gear and offer some incentives and bring some manufacturing jobs to the Capital City.==
There’s also lots of available land by Scheels–since the outlet mall isn’t going to happen–that would be a great site for a factory. Maybe even south of MacArthur’s I-72 interchange would be great too–and lead to MacArthur extension finally be completed all the way to Iron Bridge and Woodside roads, and eventually to Chatham.
Comment by NonAFSCMEStateEmployeeFromChatham Monday, Aug 30, 21 @ 11:43 am
===Lots of good places for factories - Metro East, Rockford, Quad Cities. So offer up the incentives and see what you can land.===
Or the south side of Chicago. Or the far western/northern/southern suburbs. If Illinois is going to subsidize this, why wouldn’t it benefit the place where most people who pay taxes are?
All the subsidies shouldn’t go to rural Illinois.
Comment by JS Mill Monday, Aug 30, 21 @ 11:55 am
Honestly they shouldn’t issue any new subsidies for Rivian until they start actually producing cars and trucks.
No more delays
No more excuses
Produce vehicles with the subsidies you’ve gotten.
Rich can confirm that I’ve thought Rivian was a scam since they first got EDGE credits.
Nothing has changed my mind
They always say that production is a few months away then nothing.
We’re getting taken to the cleaners on this.
Get cars and trucks rolling off the line
Then we can talk
The company was started in 2009 folks
not a single car in production
only demo vehicles
since 2009 folks
You’d think in all that time they could have gotten
ONE
vehicle into production
nope
not one
demonstration vehicles only
Comment by Honeybear Monday, Aug 30, 21 @ 12:31 pm
And yet no one actually wants an overpriced electric vehicle.
Comment by Downstate Illinois Monday, Aug 30, 21 @ 12:39 pm
===And yet no one actually wants ===
More anecdata
Comment by Rich Miller Monday, Aug 30, 21 @ 12:44 pm
=And yet no one actually wants an overpriced electric vehicle.=
I bought my first ever back in June.
I am someone.
Comment by JS Mill Monday, Aug 30, 21 @ 1:01 pm
==It’s not a penalty. It’s being fair. People who drive electric vehicles don’t pay the gas tax that we use for the infrastructure.==
1. People who have plug-in hybrids pay the extra fee and also buy plenty of gas.
2. If we’re trying to move towards electric vehicles for the good of our planet, maybe it’s time to incentivize that move and start thinking of new ways of raising revenue for roads? Just a thought.
Comment by LakeCo Monday, Aug 30, 21 @ 1:10 pm
What is needed is for EV to be economically viable for the individual purchaser without government subsidies. Cooperation with federal, business and university sources to pursue this full force like we did with the Manhattan Project in WWII.
Leary of many of the government subsidies that are often enacted. Too many have been a boondoggle for the taxpayer.
And EV’s must also pay for the roads and other infrastructure. Added cost to the purchase of the vehicle to be redistributed to various appropriate authorities. And eventually a tax on all charging stations.
Comment by Unconventional wisdom Monday, Aug 30, 21 @ 1:29 pm
@- LakeCo - Monday, Aug 30, 21 @ 9:58 am:
===While we’re on the subject of the electric-powered future, it might be time to stop penalizing Illinoisans who buy e-cars with higher vehicle registration fees…===
Meanwhile they still let giant truck-cranes tear up the highways for $0.00 in registration fees.
Comment by DuPage Monday, Aug 30, 21 @ 1:52 pm
Uh-Oh. It looks like some highly competitive imports may be here sooner then later.
https://www.youtube.com/watch?v=PoLRLZqWnjA
Comment by DuPage Monday, Aug 30, 21 @ 3:12 pm
If state government is serious about wanting to show support for growing the EV industry, maybe they should start by fixing the EV charger at the capitol complex. One of the two hookups has been out of commission for probably a year or more and the SOS office refuses to fix it.
Comment by phenom_Anon Monday, Aug 30, 21 @ 3:47 pm
==And yet no one actually wants an overpriced electric vehicle.==
That’s demonstrably false. Try again.
Comment by Lt Guv Monday, Aug 30, 21 @ 4:12 pm
“People who drive electric vehicles don’t pay the gas tax that we use for the infrastructure.”
The situation with the MFT has building for many years. As cars got more efficient, MFT revenue fell. In Illinois, this was remedied by increasing the MFT to 39 cents. The Federal MFT (18.3 cent) has remained the same since the 1990’s.
As others have stated, EV don’t pay MFT. There are some pilot programs to index a vehicle miles traveled to an equivalent vehicle paying MFT.
To properly understand MFT, it is a user fee for the privilege of driving on public highways.
Either way, EV need to contribute the highway trust fund in an equitable manner.
Comment by Huh? Monday, Aug 30, 21 @ 4:39 pm
This time will be different. No matter how many times incentives have failed in the past, they will certainly work next time. What could go wrong?
Comment by Dr. Pangloss Monday, Aug 30, 21 @ 9:19 pm