Are you considering making the switch to an electric vehicle in 2025? With more models on the market, longer driving ranges, and expanding charging infrastructure, now is an excellent time to explore your options. On top of that, there are valuable tax credits and rebates available that can make an EV more affordable than ever. Here’s a clear breakdown of how Illinois drivers can save this year.
Federal Clean Vehicle Tax Credit
The federal government currently offers up to $7,500 in tax credits for qualifying new electric and plug-in hybrid vehicles. To qualify, the vehicle must meet requirements for final assembly, battery components, and critical minerals. Income limits and price caps also apply, which means not every EV on the market is eligible.
What’s especially important for 2025 is that these credits are under review in Washington. Some lawmakers are pushing to phase them out, while others are advocating for an extension. That uncertainty means buyers who act early in the year may be in the best position to secure the maximum benefit.
Illinois EV Rebate
In addition to federal savings, Illinois offers its own state rebate program. Qualified buyers can receive up to $4,000 back when purchasing a new all-electric vehicle. The program also offers $1,500 for electric motorcycles.
To qualify, the EV must be purchased from an Illinois-licensed dealership—like Kunes Auto Mall of Sycamore—and the rebate application must be submitted within a limited time after purchase. The funds available for this program are capped, so once the money runs out, no additional rebates will be awarded until the next funding round. That makes timing especially important for Illinois drivers.
IRS Flexibility for Buyers
Another helpful piece of information for 2025 is that the IRS has built in some flexibility. Even if your new EV isn’t delivered by the end of September, you may still qualify for the federal credit if you have signed a binding purchase contract and placed a deposit by the deadline. This allows you to lock in your credit now, even if your vehicle arrives later in the year.
Why Timing Matters
If you’re considering an EV purchase in 2025, it’s smart to act quickly. Federal credits may be scaled back or eliminated depending on future legislation, and state rebates are offered on a first-come, first-served basis until the allocated funds run out. By purchasing early and securing your contract, you can put yourself in the best position to maximize your savings.
Why Choose Kunes Auto Mall of Sycamore
At Kunes Auto Mall of Sycamore, we make it easy for Illinois drivers to take advantage of these incentives. As a licensed Illinois dealership, our customers qualify for the state rebate program when they purchase with us. We carry a wide range of EVs and plug-in hybrids from leading brands, giving you plenty of options to find the right fit for your lifestyle.
sBeyond our selection, we’re committed to making your purchase process simple and stress-free. From understanding which incentives apply to your situation to arranging financing, our team is here to help you every step of the way.
The Bottom Line
Between federal tax credits, Illinois state rebates, and flexible IRS rules, there are plenty of ways to save on your next electric vehicle in 2025. The key is acting quickly—before federal programs change and before state funding runs out.
If you’re ready to make the switch, stop by Kunes Auto Mall of Sycamore. Our team is here to help you explore the latest EVs, lock in your incentives, and drive into the future with confidence.