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Illinois Gov. Signs Set of Incentives to Boost EV Production

Furthering efforts to make Illinois an eco-friendly leader in battling climate change, Gov. J.B. Pritzker signed into law a package of incentives he said will boost the production of electric vehicles in the state.

Illinois Gov. JB Pritzker
Illinois Gov. JB Pritzker
(TNS/Chicago Tribune/E. Jason Wambsgans)
(TNS) — Furthering his efforts to push Illinois as an eco-friendly leader in the battle against climate change, Gov. J.B. Pritzker on Tuesday signed into law a package of incentives that he said will boost the production of electric vehicles throughout the state.

“With this new focus on electric vehicles, our state can also become a leader in the clean transportation revolution,” Pritzker said during a morning news conference at Rock Valley College’s advance technology center in Belvidere, flanked by several other political and business leaders. “Electric school buses. Electric municipal buses. Electric delivery trucks. Electric 18-wheelers. And so much more.”

The bill passed through the General Assembly overwhelmingly and with bipartisan support last month.

The bill signing came a day after Pritzker and Chicago Mayor Lori Lightfoot were in Washington to witness President Joe Biden signing into law a $1 trillion infrastructure bill that would include, among other things, funding for electric vehicle charging stations nationally.

Pritzker on Tuesday said Biden’s infrastructure package would allow Illinois to get $149 million to expand its electric vehicle charging network, and the state is eligible for another $2.5 billion in grants for charging stations.

According to the governor’s office, the state measure will “create thousands of jobs,” help construct facilities, train workers getting into the electric vehicle manufacturing or supply field and further the administration’s goal to put a million electric vehicles on the road by 2030.

“It’s no secret that transportation is the leading source of climate pollution,” Pritzker said. “So, we’re incentivizing green economic development. It’s good for business and it’s the right thing to do.”

Belvidere, where the signing took place, is the home of the Stellantis auto plant. The company just announced plans to lay off 400 workers due to lagging sales of Jeep Cherokees and shortages in semiconductors. News of the layoffs came as state Sen. Steve Stadelman, a Rockford Democrat and one of main sponsors of the electric vehicle bill, said in a prepared statement Tuesday the bill could “preserve and create thousands of jobs” at the Stellantis plant.

Pritzker has sought to boost Illinois’ standing in the electric vehicle industry, building off the success of the Rivian electric vehicle factory that opened earlier this year in a former Mitsubishi plant in Normal with state assistance approved under his predecessor, Republican Gov. Bruce Rauner.

In addition, Pritzker earlier this year announced a $7.9 million tax credit deal that is bringing Montreal-based Lion Electric Co. to the state to build electric buses and trucks in Joliet.

Supporters of the electric vehicle bill — which, among other among things would create income and property tax incentives for electric vehicle manufacturers and suppliers — say it’s necessary to give Illinois a competitive edge in attracting companies.

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Business interests, however, have been divided over the plan. The Illinois Manufacturers’ Association offered its support, with President and CEO Mark Denzler saying in a statement that “These incentives will encourage economic investment, allowing us to keep and grow good-paying manufacturing jobs in an exciting and flourishing industry.”

But the Illinois Chamber of Commerce has expressed concerns that so-called labor peace agreements required under the proposal would cause some major companies to look elsewhere.

Tuesday’s bill signing is part of an effort by his administration to make environmental issues a priority as Pritzker heads into a 2022 reelection bid.

In September, Pritzker signed legislation that aims to put the state on track to 100% carbon-free power by 2045, and calls for coal, oil and natural gas power plants to close in the coming decades.

The legislation also put Illinois’ utility customers on the hook for a nearly $700 million bailout of three nuclear plants owned by the parent company of scandal-plagued Commonwealth Edison. The costs of the bailout and other provisions of the measure will open the door for Republicans to link the first-term Democratic governor to power bill hikes and the ongoing federal corruption probe involving ComEd.

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