What Are the Illinois EV Tax Credits?
As federal EV tax credits expire after September 30th, Illinois car shoppers can still discover valuable savings on new vehicle purchases at Arnie Bauer Buick GMC. While the EV-specific federal tax credit will expire, new tax rules are coming into play: beginning October 1st, many buyers will be able to deduct the first $10,000 in interest paid on new car loans for eligible vehicles purchased at our Buick and GMC dealership near Homewood.
How to Qualify for the New Auto Loan Interest Deduction
Here's how you can qualify for the new federal auto loan interest deduction:
- Income Limits: Single filers must have a modified adjusted gross income (MAGI) below $100,000; joint filers must remain under $200,000.
- Eligible Vehicles: Only new vehicles weighing less than 14,000 pounds qualify -- pre-owned vehicles are not eligible for this deduction.
- Made in the USA: The vehicle must be manufactured in the United States.
Thanks to these changes, many Illinois Buick or GMC fans can still access significant federal auto savings. The Arnie Bauer Buick GMC finance team can help you review your eligibility and maximize your benefits under the latest tax laws.
Illinois Electric Vehicle Tax Credit Opportunities
In addition to federal benefits, Illinois offers its own EV rebate program for residents who buy a new or used all-electric vehicle from a licensed Illinois EV dealer. Here's what you need to know if you're considering an electric Buick or GMC:
- $4,000 rebate for the purchase of a new or used all-electric vehicle (not an electric motorcycle)
- $1,500 rebate for an all-electric motorcycle purchase
Key Illinois EV Rebate Requirements:1
- You must be an Illinois resident at the time of purchase and when the rebate is issued.
- Your vehicle must be bought from an Illinois dealer licensed by the Secretary of State.
- Only individual buyers are eligible (businesses and organizations are excluded).
- The vehicle cannot have previously received an Illinois EV rebate.
- You must retain ownership of the vehicle for at least 12 consecutive months following the purchase.
- The application must be submitted during an open rebate cycle and within 90 days of the vehicle's purchase date.1
- The rebate cannot exceed the actual purchase price of the vehicle.
Why Shop EVs at Arnie Bauer Buick GMC?
Our experienced finance team is here to help you navigate both federal deductions and state EV rebates, so you can make the most out of your new Buick or GMC purchase. We'll explain eligibility, walk you through the application process and even help you find a vehicle that qualifies under the latest incentives.
Whether you're exploring the all-electric options or looking for a new fuel-efficient model eligible for federal deductions, contact Arnie Bauer Buick GMC in Illinois today to discover current inventory, get pre-approved and start saving on your next ride!
Ready to explore EVs or need more details about the auto loan interest deduction? Connect with us or stop by our dealership for personalized assistance. Let's put you on the road to electric car ownership in Illinois!
Learn More: Why Buy from Us? | New Vehicle Specials | Benefits of Buying a Used Vehicle
1 See dealer for details.