Hydrogen Laws and Incentives in Michigan
The list below contains summaries of all Michigan laws and incentives related to hydrogen.
Laws and Regulations
Alternative Fuel Commercial User Tax
An alternative fuel commercial user that has not paid fuel taxes to an alternative fuel dealer must file a monthly report with the Michigan Department of Treasury (Department) to determine taxes owed under Michigan Compiled Laws 207.1152. By the twentieth day of each month, users must file the report detailing the number of gallons or gallon equivalents of alternative fuel consumed during the preceding month. Alternative fuel commercial users must pay the full amount of tax due to the Department at the time of filing the report.
(Reference Michigan Compiled Laws 207.1154)
Alternative Fuel Dealer and Commercial User License
Alternative fuel dealers and alternative fuel commercial users must apply for a license from the Michigan Department of Treasury. Commercial users are defined as those operating vehicles with three or more axles, or two axles and a gross vehicle weight rating exceeding 26,000 pounds, that operate in more than one state. Alternative fuel dealers must pay a license fee of $500 and commercial users must pay a license fee of $50. For the purpose of this requirement, alternative fuels include natural gas, propane, hydrogen, and hythane.
(Reference Michigan Compiled Laws 207.1151, 207.1153, and 207.211)
Alternative Fuel Excise Tax
Alternative fuels are taxed equal to the motor fuel tax on a gallon equivalent basis. Alternative fuels include natural gas, propane, hydrogen, and hythane. A gallon equivalent is defined as 5.660 pounds (lbs.) of compressed natural gas, 6.06 lbs. of liquefied natural gas, 480.11 standard cubic feet of hydrogen, and 162.44 standard cubic feet of hydrogen compressed natural gas. A gallon of propane is measured as 4 quarts or 3.785 liters.
(Reference Michigan Compiled Laws 207.1003, 207.1151, and 207.1152)
Hydrogen Production and Retail Requirements
All hydrogen fuel produced and sold in Michigan must meet state fuel quality requirements. Any retailer offering hydrogen fuel for sale in the state must register with, and obtain approval from, the Michigan Department of Agriculture (MDA). A hydrogen retailer must also obtain a license from the MDA for each operating retail outlet.
(Reference Michigan Compiled Laws 290.642 through 290.647)
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)
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)
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
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 chargers. 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.
More Laws and Incentives
To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.