New Illinois Law Removes Trade-In Tax Credit Cap
MEDIA INFORMATION
Contact: Mark Bilek
Senior Director of Communications and Technology
Chicago Automobile Trade Association
Office: (630) 424-6082
Cell: (847) 652-0632
Email: mbilek@drivechicago.com
Contact: Jennifer Morand
Director of Public Relations and Social Media
Chicago Automobile Trade Association
Office: (630) 424-6084
Cell: (630) 391-1986
Email: jmorand@drivechicago.com
FOR IMMEDIATE RELEASE
New Illinois Law Removes Trade-In Tax Credit Cap
Vehicle buyers can once again take full tax advantage of a trade-in.
CHICAGO (Jan. 3, 2022) – Thanks to a new law effective Jan. 1, 2022, retail vehicle buyers now receive the full tax credit on trade-ins. This new provision, part of Senate Bill 58 that was supported by both the Chicago Automobile Trade Association (CATA) and Illinois Automotive Dealers Association, reverses the $10,000 cap that was set in 2020 as part of Gov. Pritzker’s Rebuild Illinois capital infrastructure plan.
“This change provides additional motivation for vehicle owners to trade-in their vehicles at a time when trade-in values are at an all-time high,” said Kevin Keefe, CATA chairman. “Prior to this change, vehicle buyers had been losing much of the tax savings that makes trading in a vehicle advantageous. Now, consumers who are looking to get a retail vehicle can maximize their savings.”
When shopping for a vehicle, the tax savings created by a trade-in can be significant. For example, the tax credit on a trade in worth $20,000 can be as high as $2,000, depending on location. In this case, a vehicle buyers would be saving $1,000 compared to the savings with the capped trade-in credit.
“New-vehicle shoppers face an unprecedented array of challenges in today’s supply-limited market,” said Dave Sloan, CATA president. “The removal of this trade-in tax credit cap helps buyers at a time when they need it most.”
Buyers shopping for a vehicle don’t need to do anything. New-car dealers will automatically add in the trade-in credit at the time of purchase. DriveChicago.com, which lists the inventory of more than 400 new-car dealers in the Chicago market, is an ideal place to find a new-car dealer and begin your search for a new vehicle.
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About The Chicago Automobile Trade Association
Founded in 1904 and located in Oakbrook Terrace, the Chicago Automobile Trade Association is comprised of more than 400 franchised new-car dealers and an additional 150 allied members. The group's dealer members employ about 19,000 people in the metropolitan area. The association has produced the world famous Chicago Auto Show since 1935. For more information, please visit CATA.info.
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