Illinois Adds $1,000 Cash Back to Hybrid Buyers

Nationally, you can still get a tax credit if you buy a new hybrid car, but the amount depends on the model you buy. In Illinois, however, the state treasurer is looking to give shoppers an additional $1,000 in cash when they buy any new hybrid or other energy-efficient vehicle, such as those powered by natural gas.

As of yesterday, the state earmarked $2 million for the program, meaning 2,000 buyers will get the bonus cash. There are some catches though. Buyers must secure their auto loan through one of 46 local banks and credit unions as opposed to using the automaker’s financing arms. We’re not sure if this will spur a new wave of hybrid sales in the state but it probably won’t hurt.

State to Give Rebates on Some Fuel-Efficient Vehicles (Chicago Tribune)
Green Rewards Illinois (Illinois State Treasurer)

Comments

Does that apply to only IL residents or everyone that buys a hybrid in IL?

Program Eligibility:

* Buyers must be Illinois residents.
* Buyers must purchase an eligible hybrid, electric or fuel cell vehicle
(see list below).
* Buyers must receive financing from a participating financial institution.
* There are no income or price restrictions.

Sounds like more of a quickback to local banks than any affort to support hybrids. Interest incomre from the car lones will definitely be more than a thousand a piece.

Dave...are you going to get the Escape then? It's suddenly $1,000 cheaper. =)

As far as promoting local banks, this isn't a terrible move, as it keeps the profits from car loans in-state, as opposed to 'off-shore' in some other state. However, residents shouldnt be penalized if they pay their loans off right away.

LM,
I thought Dave has already chosen the Outback. So this is not something that he can change to right now.