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Illinois to Provide $1,000 Rebates for Hybrids or Alt-Fuel Vehicles

The state of Illinois introduced its Green Rewards program, which awards consumers a $1,000 rebate with the purchase of a new hybrid or other fuel efficient vehicle.

Buyers must be Illinois residents, and purchase an eligible hybrid, electric or fuel cell vehicle from the approved list. Buyers must also receive financing from a participating financial institution.

Participating banks and credit unions agree to accept a discounted deposit rate from the state for one year in exchange for providing the $1,000 rebates to Illinois residents.

There are no income or price restrictions.

Hybrids eligible for the rebate are:

  • Ford Escape (2WD and 4WD)
  • Mercury Mariner (2WD and 4WD)
  • GMC Sierra (2WD and 4WD)
  • Chevy Silverado (2WD and 4WD)
  • Saturn Aura Greenline
  • Saturn Vue Greenline
  • Honda Insight CVT
  • Honda Accord
  • Honda Civic
  • Nissan Altima
  • Toyota Prius
  • Toyota Highlander (2WD and 4WD)
  • Lexus Rx400h (2WD and 4WD)
  • Toyota Camry
  • Lexus GS 450h
  • Mazda Tribute (2WD and 4WD)

Compressed natural gas vehicles, hydrogen fuel cell and battery-electric vehicles are also eligible. (Currently, fuel cell CNG vehicles are not sold in Illinois, but may be in the future.)

The state is pledging $2 million to the program. If more than 2,000 people apply for rebates, the state will revisit its financing options.


Alex Kovnat

Sounds good, but what if the UAW or some neurotic intellectual demands that in addition to being hybrid or alternative fuel or fuel cell powered, another condition for eligibility be 90% domestic parts content?


Why aren't diesels eligible? They run biodiesel.


Good to see the Lexus LS600L is not on the list...I almost believe the GS450H shouldn't be there either. A clean (50 state emissions legal) diesel offering should be on the list when available in my opinion.

$1000 rebate on the micro hybrids is a bit much but I guess it makes the whole thing easier.


The involvement of banks and credit unions seems odd. The customer must finance the car. The banks and credit unions pay the $1000. And the state does what?

I am unfamilar with the term 'discounted deposit rate'. It sounds like smoke and mirrors to me.


Since it is a scheme from Illinois, it sounds like there's a payoff hidden away for someone (banks & credit unions? financiers?) Another feel good PR for Gov Blago with too many strings attached to really make a difference for the commoners.

Nothing like subsidizing the rich by giving rebates on 2 Lexus models.

We are doomed as a country when we subsidize the wealthy to buy imported vehicles. How in the world are these two Lexus models “Green”.


It would have made more sense to give the rebate to all vehicles which have an EPA fuel efficiency rating over a certain value. Just because a car or truck has hybrid drive does not necessarily make it fuel efficient relative to other choices. No vehicle should qualify if it is rated less than the CAFE target.


Yes, vehicle mpg and/or passenger miles per gallon or a combination of both could be used instead of technology.

A figure of 50 + 200 = 250 (ie vmpg + pmpg) could be the minimum to meet before getting the subsidies.

Since very few vehicle would presently qualify, the subsidy could be doubled or tripled for a few years.

One cannot favour local products without starting an international trade war and breaking existing free trade agreements. Democracies have to respect their agreements and treaties. Otherwise, you become....


These ideas, though flawed in application, do well to build incentive to purchase new technology - growing the perception that we can realistically drive vehicles that use electric motors. After the EV1 debacle there are plenty of superstitious people out there that think electrics consort with the devil.

Combined with Fed credits this makes hybrid purchases even more attractive. Good.


Dave- Diesels aren't eligible because if they were the rebate would be ripe for abuse by those who would only say they'd use biodiesel for long enough to claim the credit. Same applies for flex-fuel vehicles like E85 or even bi-fuel vehicles. You have to design your incentive programs very carefully or else you will be giving a subsidy for "good behavior" that is only on paper.

Joe D

The whole idea of taxpayers somehow funding rebates when the State can't even balance the budget is ridiculous. They would do just as well to increase the tax on non-hybrid vehicles.
I also do not understand why the lexus models are listed.


I purchased a 2008 Ford Escape Hybrid during September in Chicago, Illinois. It is 4wd and is a sweet ride. How Do i get some kind of tax rebate or credit?? Does anybody know how much $$$ it will be???

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