$10K Trade-In Allowance Cap
Took Effect Jan. 1, 2020
Here are answers to some frequently asked questions
to help you understand how this affects Illinois residents.
What does this mean?
This law places a cap of $10,000 on sales tax credit for motor vehicle trade-ins for Illinois residents.
Does it matter which state I buy my vehicle in?
No. The law applies to Illinois residents who register their vehicle in Illinois, regardless of what state you purchase your vehicle in.
Does it matter which vehicle I buy?
Yes. According to the Illinois Department of Revenue, the law only applies to “first division” vehicles, which are designed for carrying no more than 10 people. First division vehicles generally consist of most standard passenger vehicles and SUVs. Pickup trucks are second division motor vehicles and, therefore, there is no change with pickup trucks – you get the full tax credit. Read more
The law also does not have any impact on leasing.
