Pritzker signs legislation aimed at encouraging electric vehicle production in Illinois

By Kevin Haas
Rock River Current
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Gov. JB Pritzker on Wednesday signed an amendment to legislation that further incentivizes electric vehicle production in Illinois. Local lawmakers hope it can help encourage Stellantis to retool the Belvidere Assembly Plant to keep manufacturing jobs here.

The changes, which lawmakers approved during the November veto session, increase the tax credit available to automakers who retain employees as they transition to electric vehicle production to 75% of their state income tax and 100% of their income tax if they operate in a designated underserved or energy transition area.

The legislation also provides tax credits for training costs, tax exemptions and investment credits. It also allows local municipalities to reduce property taxes on electric vehicle projects.

“This measure is an important tool in making sure our manufacturing regions, such as the Rockford area, remain competitive and continue to attract investment,” state Rep. Dave Vella, a Democrat from Loves Park, said in a news release issued by Pritzker’s office.  “Our state is home to a tremendously skilled workforce, a rich manufacturing heritage and an infrastructure ready to meet 21st century demands. This bill is another opportunity to bolster our state’s standing as a national leader.”

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Pritzker’s signing of the bill comes about a week and a half after Stellantis announced its plans to idle the Belvidere Assembly Plant and layoff roughly 1,350 remaining employees on Feb. 28.

Vella and state Sen. Steve Stadelman, also a Democrat from Loves Park, had pushed to pass the incentive package as a means to secure the future of the Belvidere factory.

“This law will make it easier for automakers and car parts manufacturing companies to qualify for tax credits — opportunities that can help expand local businesses and support working Illinoisans,” Stadelman said in the news release. “I am proud to support this bill and see this as a major win for manufacturers in our state.”

Stellantis has not given any public indication of its plans for the Belvidere facility after Feb. 28. It said in a statement that it is working to identify ways to retool the facility, but offered no additional details.

Some local officials, such as Pamela Lopez-Fettes, executive director of the economic development agency Growth Dimensions, say they’re optimistic that Stellantis will move forward with retooling the facility.

“I think that we’re doing everything in our power that we could possible do to attract a new product,” Lopez-Fettes said in an interview earlier this month. “I’m hoping that the news will be sooner than later.”

Related: Downtown Rockford gets new electric vehicle charging stations

Pritzker said in a statement that the legislation is a sign that Illinois is “leading the electric vehicle revolution.”

“Today’s REV amendment signing sends a clear message to EV manufacturers that we are the best place in the nation to call home, thanks to our competitive incentives and ambitious clean energy goals,” he said. “It’s no wonder that companies like Lion Electric, TCCI, and Rivian have expanded their footprints throughout our state, and I look forward to welcoming more EV businesses to Illinois in the coming years.”

This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on Twitter at @KevinMHaas or Instagram @thekevinhaas.