The State of Illinois has passed a Trade Tax Credit Cap, which is set to take effect January 1st, 2020. This cap will restrict the amount of sales tax credit you will be able to claim when you trade in your current vehicle on the purchase of a new or pre-owned vehicle.
Currently, Illinois residents can claim the full trade-in value of their vehicle.
On January 1st, 2020, Illinois residents will only be able to claim a maximum of $10,000 trade-in tax credit.
This tax change will impact Illinois residents regardless of which state they purchase their new vehicle in.
Here is an example for trading in a vehicle worth $26,000 on a new or pre-owned vehicle worth $34,000:
This same purchase will cost you an additional $1,000 in Illinois Sales Tax after January 1st, 2020.
We want to help you keep that $1,000 in your wallet. We believe this is double taxation, and we are working very closely with Illinois legislators and the Illinois Automobile Dealers Association to attempt to reverse this legislation before it takes effect.
We want to make sure that YOU, our valued customer, are aware of this change and its potential impact on your finances. We want to make sure you have enough time to discuss ALL options with your Zimmerman Honda Sales Consultant so we can ensure that you are getting the most bang for your buck!