State Announces First REV Act Tax Credit to Manufacturer Decatur

The state on Tuesday announced the awarding of the first tax incentives targeted at manufacturing electric vehicles made possible by legislation signed by Governor JB Pritzker last year.

The incentives come from the Electric Vehicle Reinvention Act, which was passed almost unanimously and became law in Novemberand will provide an estimated $2.2 million in value to T/CCI Manufacturing in Decatur.

The REV law adopted two months after the Climate and Employment Equity Act driving the adoption of electric vehicles, guiding Pritzker’s vision of making Illinois “the best place in North America to drive and build an electric vehicle.”

T/CCI’s Decatur plant currently manufactures compressors for gasoline cars. The company plans to retool the Decatur facility to produce compressors for electric vehicles with an estimated investment of $20 million. Currently, T/CCI manufactures EV compressors, a part that cools batteries and powers car air conditioning systems, in China and India.

Pritzker and local lawmakers have said domestic manufacturing of electric vehicle parts is needed to address supply chain issues.

“Through the REV Act, Illinois beat international competition to bring this deal home,” Pritzker said. “That means new jobs and jobs that would have been abroad stay here.”

The transition of T/CCI will create 50 new jobs, while 103 existing jobs are expected to be maintained.

The REV Act incentives target manufacturers of electric vehicles and their parts, such as compressors. Companies that benefit from the reliefs can receive a state income tax credit of 75% or 100% of withheld payroll taxes for each new employee and 25% or 50% for current employees. The law also provides a 10% credit for training expenses.

The governor’s office linked Tuesday’s announcement to a previously announced plan to provide $15.3 million in public infrastructure funding to Richland Community College and $6 million to the city of Decatur to create a “cluster EV” which includes a center for training, research and innovation in partnership. with T/CCI.

“We know that when companies are looking for where to locate, talent is most important and we want to make sure that when electric vehicle companies look to Illinois to develop or locate a new business, they must knowing you won’t find a harder working, more skilled workforce,” Department of Commerce and Economic Opportunity Director Sylvia Garcia said at a press conference on Tuesday.

The infrastructure money would go to a climate simulation center on T/CCI’s Decatur campus, which will test new technologies related to electric vehicles in extreme environments.

“T/CCI is recognized in the industry as a leader in compressor technology, having already developed the widest range of EV compressors on the market,” said Richard Demirjian, president of TCCI, in a press release. “We are excited to use our innovation and component manufacturing expertise to advance Illinois’ position and create a successful partnership that drives sustainable economic growth.”

Richland and T/CCI are also working in partnership with the University of Illinois Grainger College of Engineering and Northern Illinois University on a training academy that will focus on advanced electric vehicle engineering, software technology and accredited learning programs.

A model of public-private partnership, the climate center will be open to companies and researchers looking to accelerate the adoption of new EV technologies, according to the governor’s office.

“Together, we are establishing a new model for Illinois that sets the stage for how education, research, and industry work together to cohesively move us faster, invest in our people, and grow our economy. “said Richland Community College President Cris Valdez. “This state-of-the-art facility will provide world-class electrification training, a registered apprenticeship program, and immersive industry partnerships and testing available for the electric vehicle industry.”

Pritzker said the community college partnership is one he would like to emulate in communities across the state, pointing to a Partnership between electric vehicle manufacturer Rivian and Heartland Community College in Normal.

Capitol News Illinois is a nonprofit, nonpartisan news service covering state government and distributed to more than 400 newspapers statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.