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 through 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 (EGLE) provides funding for public or private organization for the installation of direct current fast charging (DCFC) stations, site preparation, and networking fees and signage. Applicants 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 EGLE EV Charger Funding Opportunities website.
Point of Contact
Lauren Magirl
Michigan Department of Environment, Great Lakes, and Energy
magirll@michigan.gov
Clean Diesel Grant
The Michigan Department of Environment, Great Lakes, and Energy (EGLE) provides schools districts, businesses, local government entities, nonprofit organizations, tribal organizations, and other qualifying entities with grants to replace medium- and heavy-duty diesel vehicles with hybrid, alternative fuel, and zero emission vehicles. Eligible projects include on-road, non-road, and marine vehicle, engine, and equipment replacements. Priority will be given to applicants located in environmental justice communities. For more information, including additional eligibility requirements, see the EGLE Michigan Clean Diesel Program website.
Point of Contact
Dan Zbozien
Michigan Department of Environment, Great Lakes, and Energy
Phone: 517-290-5722
ZbozienD@Michigan.gov
Electric Vehicle (EV) Charging Station Energy Fee Exemption
A commercial electric customer that installs or modifies electrical wiring or outlets for EV charging is exempt from energy optimization charges. Additional terms and conditions apply.
(Reference Senate Bill 303, 2023)
Electrification Technology Grants
The Office of Future Mobility and Electrification and the Michigan Department of Transportation administer the Michigan Mobility Funding Platform which provides grants to mobility and electrification companies to deploy their technology in Michigan, including electric vehicles (EVs) and EV charging stations. Eligible applicants must collaborate with a Michigan-based partner, meet a local use case in Michigan, and have matching funds available. For more information, including application instructions, see the Michigan Economic Development Corporation Michigan Mobility Funding Platform website.
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.
Michigan's National Electric Vehicle Infrastructure (NEVI) Planning
The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Michigan Department of Transportation to submit an annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office of Energy and Transportation (Joint Office), describing how the state intends to distribute NEVI funds. The submitted plans must be established according to NEVI guidance.
For more information about Michigan’s NEVI planning process, see the Michigan NEVI website. To review Michigan’s NEVI plan, see the Joint Office State Plans for EV Charging website.
Laws and Regulations
Electric Vehicle (EV) Charging Station Electricity Dealer License
A person may not sell or dispense electricity as a vehicle fuel at a location other than a residence unless the person holds a valid license. Additional terms and conditions apply.
(Reference House Bill 4706, 2023)
Electric Vehicle (EV) Fee
In addition to standard registration fees, EVs, including all-electric vehicles and plug-in hybrid electric vehicles (PHEVs), are subject to an annual fee. The specific fees are as follows:
| Vehicle Type | Gross Vehicle Weight Rating | Fee |
|---|---|---|
| PHEV | 8,000 pounds (lbs.) or less | $30 |
| PHEV |
8,000 lbs. |
$100 |
| EV | 8,000 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)
Lake Michigan Electric Vehicle (EV) Circuit
Michigan joined Indiana, Illinois, and Wisconsin (Signatory States) in signing the Lake Michigan EV Circuit Tour memorandum of understanding (MOU) to create an EV charging corridor along the Lake Michigan coastline that is intended to make it possible to seamlessly drive an EV across the Signatory States’ that border Lake Michigan. Signatory States are committed to:
- Coordinating on regional EV charging infrastructure siting and deployment strategies;
- Achieving a consistent EV charging station user experience across Signatory States;
- Encouraging EV tourism around Lake Michigan;
- Removing barriers to EV adoption and reducing range anxiety;
- Identifying and developing best practices for EV charging, infrastructure optimization, information sharing, and electricity demand management;
- Providing reliable long-distance driving routes for EV drivers.
The Signatory States will maintain a working group composed of senior leadership from each state who will meet and report on the above actions. For more information, see the MOU.
Public Utility Definition
An entity that provides electric vehicle charging services is not defined as a public utility and is not subject to restrictions on the resale of electricity.
(Reference House Bill 4706, 2023)
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 (EV) charging station siting and deployment analyses with a focus on commercial routes;
- Standardize regulations, messaging, and customer experience related to EVs across state lines;
- Evaluate opportunities for workforce development;
- Identify historically disadvantaged communities for equitable EV charging station 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.
State Agency Zero-Emission Vehicle (ZEV) Acquisition Requirements
When acquiring new vehicles, all state agencies must prioritize the purchase and use of ZEVs. Policies developed to promote the use of ZEVs should prioritize those that travel the most miles or those operating in Justice40 or underserved communities. By 2033, 100% of light-duty vehicles in the state fleet must be ZEVs, and by 2040, 100% of medium- and heavy-duty vehicles in the state fleet must be ZEVs. The Michigan Department of Technology, Management, and Budget must collaborate with other state agencies to create fleet purchasing requirements and exception criteria that support these acquisition requirements. A report summarizing updates toward these acquisition requirements will be published online annually.
(Reference Executive Directive 2023-5, 2023)
More Laws and Incentives
To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.