Electricity Laws and Incentives in Michigan

The list below contains summaries of all Michigan laws and incentives related to electricity.

State Incentives

Alternative Fuel Development Property Tax Exemption

Industrial property that is used for high-technology activities or the creation or synthesis of biodiesel fuel may be eligible for a tax exemption. High-technology activities include those related to advanced vehicle technologies such as electric, hybrid electric, or alternative fuel vehicles and their components. To qualify for the tax exemption, an industrial facility must obtain an exemption certificate for the property from the Michigan State Tax Commission. (Reference Michigan Compiled Laws 207.552 and 207.803-207.809)

Alternative Fuel Vehicle (AFV) Emissions Inspection Exemption

Dedicated AFVs powered by compressed natural gas, propane, electricity, or any other source as defined by the Michigan Department of Transportation are exempt from emissions inspection requirements. (Reference Michigan Compiled Laws 324.6311 and 324.6512)

Charge Up Michigan Placement Project

The Michigan Department of Environment, Great Lakes, and Energy provides funding for public or private organization for the installation of direct current fast (DC Fast) chargers, site preparation, and networking fees and signage. Applicant must be enrolled in a utility electric vehicle (EV) program. Grants are equal to the lesser of 33.3% of the total cost of the project or a direct match of the electric utility funding, up to $70,000. For more information, including eligibility requirements and application, see the EV Charger Funding Opportunities website.

Point of Contact
Julie Staveland
State Energy Program Specialist
Michigan Department of Environment, Great Lakes, and Energy
StavelandJ@michigan.gov

Medium- and Heavy-Duty Grant Program

The Michigan Department of Environment, Great Lakes, and Energy (EGLE) offers grants for eligible on- and off-road vehicles and equipment. Projects must reduce nitrogen oxide emissions, improve air quality, and increase adoption of zero emission or alternative fuel vehicles and equipment. Eligible vehicles and equipment include local freight vehicles (medium- and heavy-duty trucks and port drayage trucks), shuttle and transit buses, port cargo handling equipment and forklifts, airport ground support equipment, and more. The program is funded by Michigan’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including available requests for proposals, see the EGLE Fuel Transformation Program website.

Utility/Private Incentives

Commercial Electric Vehicle Supply Equipment (EVSE) Rebates – Consumers Energy

The Consumers Energy PowerMIFleet pilot program offers rebates to commercial and government customers for the purchase and installation of EVSE. To be eligible, applicants must provide proof of purchase or lease of at least one plug-in electric fleet vehicle, dedicate one parking space per EVSE port, and provide EVSE charging data to Consumers Energy for the duration of the pilot program. Rebates are available in the following amounts:

EVSE TechnologyFleet-Use OnlyPublicly Accessible
Level 2Up to $5,000 per dual port EVSE; up to $50,000 per siteUp to $50,000 per dual port EVSE; up to $50,000 per site
Direct Current Fast (DC Fast)Up to $35,000 per EVSEUp to $70,000 per EVSE

Rebate amounts may not exceed total project cost and are awarded on a first-come, first-served basis. For more information, see the Consumers Energy PowerMIFleet website.

Electric Vehicle Supply Equipment (EVSE) Rebate - Consumers Energy

The Consumers Energy PowerMIDrive program offers rebates to residential and commercial customers who install Level 2 or direct current fast (DC Fast) EVSE. Residential customers are eligible for a $500 rebate to install a qualified Level 2 EVSE. Commercial customers installing qualified, publicly accessible EVSE are eligible for rebates up to $5,000 per Level 2 EVSE and up to $70,000 per DC Fast EVSE installed. Rebates are available on a first-come, first-served basis. For more information, see the PowerMIDrive website.

Electric Vehicle Supply Equipment (EVSE) Rebate – DTE Energy

DTE Energy offers a $500 rebate for the installation of a Level 2 EVSE to qualified residential customers that purchase or lease a plug-in electric vehicle (PEV) and enroll in the PEV Charging Rates. For more information, see the DTE Energy Charging Forward website.

Electric Vehicle Supply Equipment (EVSE) Rebate – Holland Board of Public Works (HBPW)

HBPW offers residential customers a $300 rebate for the purchase of a Level 2 EVSE. The EVSE must be ENEGY STAR certified, wi-fi compatible, and send monthly usage data to HBPW. Residential customers must also enroll in a time-of-use rate. For more information, including eligibility requirements, see the HBPW Residential Rebates website.

Electric Vehicle Supply Equipment (EVSE) Rebate – Lansing Board of Water & Light (BWL)

BWL offers a $1,000 rebate for the installation of a Level 2 EVSE to residential customers who purchase or lease a plug-in electric vehicle (PEV). For more information, including eligibility requirements, see the BWL PEVs website.

Plug-In Electric Vehicle (PEV) Time-Of-Use (TOU) Rate - DTE Energy

DTE Energy offers a TOU rate to residential customers who own a PEV. For rate information, including how to qualify, see the DTE Energy PEV Rates website.

Plug-In Electric Vehicle (PEV) Time-Of-Use (TOU) Rate - Indiana Michigan Power

Indiana Michigan Power offers a TOU rate to residential customers who own a qualified PEV.

For more information, see the Indiana Michigan Power Indiana Electric Rates website.

Plug-In Electric Vehicle (PEV) Time-Of-Use (TOU) Rate – Holland Board of Public Works (HBPW)

HBPW offers a TOU rate to residential customers who own a PEV. For more information, see the HBPW Residential Rates website.

Plug-In Electric Vehicle (PEV) Time-of-Use (TOU) Rate – Lansing Board of Water & Light (BWL)

BWL offers a TOU rate to residential customers who own or lease a PEV. For more information, including eligibility requirements, see the BWL PEVs website.

Laws and Regulations

Plug-In Electric Vehicle (PEV) Fee

In addition to standard registration fees, PEVs, including all-electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) with a minimum battery capacity of 4 kilowatt-hours, are subject to an annual fee. The specific fees are as follows:

Vehicle TypeGross Vehicle Weight RatingFee
PHEV8,000 pounds (lbs.) or less$30
PHEV> 8,000 lbs.$100
EV8,000 lbs. or less$100
EV> 8,000 lbs.$200

PHEV fees will increase by $2.50 per $0.01 that the state motor fuel tax exceeds $0.19 and EV fees will increase by $5.00 per $0.01 that the state motor fuel tax exceeds $0.19.

(Reference Michigan Compiled Laws 257.801)

Regional Electric Vehicle (REV) Midwest Plan

Michigan joined Illinois, Indiana, Minnesota, and Wisconsin (Signatory States) in signing the REV Midwest memorandum of understanding (MOU) to accelerate vehicle electrification in the Midwest. Signatory States are committed to:

  • Accelerate medium- and heavy-duty fleet electrification;
  • Collaborate on regional electric vehicle supply equipment (EVSE) siting and deployment analyses with a focus on commercial routes;
  • Standardize regulations, messaging, and customer experience related to electric vehicles (EVs) across state lines;
  • Evaluate opportunities for workforce development;
  • Identify historically disadvantaged communities for equitable EVSE development and EV adoption; and,
  • Educate consumers and fleet owners to raise EV awareness, reduce range anxiety, and increase EV adoption.
The Signatory States maintain a coordination group composed of senior leadership from each state who meet and report on the above actions. For more information, see the REV Midwest Partnership Announcement.

More Laws and Incentives

To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.