Alternative Fuel Vehicle (AFV) Tax Exemption

Expired: 12/31/2012

Qualified AFVs are exempt from personal property taxes. The exemption only applies to personal property that is new to Michigan. To be eligible, the vehicle must not have been previously taxed or exempted from taxation under another law. Eligible vehicles must also:

  • Be produced by an original equipment manufacturer;
  • Meet the Federal Motor Vehicle Safety Standards;
  • Meet local emissions standards; and
  • Be propelled by natural gas, fuel blends containing at least 85% ethanol), liquefied petroleum gas (LPG, or propane), or fuel blends containing at least 85% methanol), or be a fuel cell vehicle, electric vehicle, or hybrid electric vehicle.

The Michigan NextEnergy Authority must certify the vehicle in order for it to be eligible. The exemption expires on December 31, 2012.

(Michigan Compiled Laws 207.822 and 211.9(i))