Michigan Laws and Incentives

Listed below are the summaries of all current Michigan laws, incentives, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:

State Incentives

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 EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office by August 1, 2022, describing how the state intends to distribute NEVI funds. Plans must be established according to NEVI guidance.

For more information about Michigan’s NEVI planning process, see the Michigan NEVI website. For more information about Michigan’s NEVI plan, see the Joint Office’s State Plans for EV Charging website.

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)

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.

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

Natural Gas Fueling Station Air Quality Permit Exemption

The Michigan Department of Environmental Quality requirement to obtain an installation permit does not apply to qualified natural gas, hydrogen, and propane storage and handling equipment at dispensing facilities.

(Reference Michigan Air Pollution Control Rule 336.1284)

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)

Natural Gas Vehicle (NGV) Weight Exemption

A vehicle primarily powered by natural gas may exceed the state’s axle and weight loading limits by a weight equal to the difference between the weight of the vehicle with the natural gas tank and fueling system and the weight of a comparable vehicle with a diesel tank and fueling system. The NGV maximum gross weight may not exceed 82,000 pounds.

(Reference Michigan Compiled Laws Section 257.722)

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.

Utility/Private Incentives

Fleet Electrification Assessment – Consumers Energy

Consumers Energy offers advisory services to fleets to analyze fleet electrification opportunities. Eligible applicants must be Consumers Energy customers and include any organization with light-, medium-, or heavy-duty fleet vehicles. For more information, see the Consumers Energy PowerMIFleet website.

Residential Electric Vehicle (EV) Charging Station Rebate - Consumers Energy

The Consumers Energy PowerMIDrive program offers rebates to residential customers who install Level 2 or direct current fast charging (DCFC) stations. Residential customers are eligible for a $500 rebate to install a qualified Level 2 EV charging station. Rebates are available on a first-come, first-served basis. For more information, see the PowerMIDrive website.

Commercial Electric Vehicle (EV) Charging Station Rebates – Consumers Energy

Consumers Energy offers rebates to commercial customers for the purchase and installation of Level 2 and direct current fast charging (DCFC) EV charging stations. Rebates are available in the following amounts:

EV Charging Station Type Applicant Type Maximum Rebate Amount
Level 2 Multi-unit dwelling $7,500
Level 2 Hospitality and recreation $5,000
Level 2 Fleet $5,000
DCFC Fleet $35,000
DCFC Fleet - public access $70,000

Rebates are awarded on a first-come, first-served basis. Additional requirements apply. For more information, including eligibility requirements, see the Consumers Energy Public Charger Rebates and PowerMIFleet websites.

Electric Vehicle (EV) Charging Station Incentive – Consumers Energy

Consumers Energy offers residential customers a $10 monthly incentive for charging EVs overnight with a Level 2 EV charging station. For more information, see the Consumers Energy Bring Your Own Charger Pilot website.

Electric Vehicle (EV) Time-Of-Use (TOU) Rate and Rebate - Indiana Michigan Power

Indiana Michigan Power offers a TOU rate to residential customers who own a qualified EV. Customers that own an EV and install an EV charging station may also be eligible for a $500 rebate when enrolling in the TOU program. For more information, including eligibility requirements, see the Indiana Michigan Power Michigan Electric Rates website.

Electric Vehicle (EV) Time-Of-Use (TOU) Rate - DTE Energy

DTE Energy offers a TOU rate to residential customers who own an EV. For more information, including how to qualify, see the DTE Energy Electric Pricing website.

Electric Vehicle (EV) Charging Station Rebate – DTE Energy

DTE Energy offers a $500 rebate for the installation of a Level 2 EV charging station to qualified residential customers that purchase or lease an electric vehicle (EV) and enroll in the EV TOU rates. For more information, see the DTE Energy Charging Forward website.

Electric Vehicle (EV) Charging Station Rebate – Holland Board of Public Works (HBPW)

HBPW offers residential customers a $300 rebate for the purchase of a non-ENERGY STAR certified Level 2 EV charging station and a $325 rebate for an ENERGY STAR certified Level 2 EV charging station. Residential customers must also enroll in a time-of-use rate. For more information, including eligibility requirements, see the HBPW EVs website.

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

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

Propane Vehicle Conversion Rebate – Michigan Propane Gas Association

New propane vehicles or vehicles converted to run on propane that are model year 2015 or newer are eligible for a $4,000 rebate per vehicle, up to $16,000 per customer. Rebates are awarded on a first-come, first-served basis. For more information, including vehicle restrictions and requirements, see the Michigan Propane Gas Association Incentive Programs website.

Electric Vehicle (EV) Charging Station Rebate – Lansing Board of Water & Light (BWL)

BWL offers a $1,000 rebate for the installation of a Level 2 EV charging station to residential customers who purchase or lease an EV. For more information, including eligibility requirements, see the BWL EVs website.

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

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

Electric Vehicle (EV) and EV Charging Station Rebate – Great Lakes Energy (GLE)

GLE offers a $500 rebate to customers who purchase and install a Level 2 EV charging station. Customers who also purchase or lease a new EV are eligible for a rebate of $1,000. For more information, including application materials, see the GLE Energy Wise website.

Electric Vehicle (EV) Infrastructure Support

Michigan utilities joined the National Electric Highway Coalition (NEHC), committing to create a network of direct current fast charging (DCFC) stations connecting major highway systems from the Atlantic Coast to the Pacific of the United States. NEHC utility members agree to ensure efficient and effective fast charging deployment plans that enable long distance EV travel, avoiding duplication among coalition utilities, and complement existing corridor DCFC sites. For more information, including a list of participating utilities and states, see the NEHC website.

Electric Vehicle (EV) and EV Charging Station Rebates – Presque Isle Electric & Gas Co-Op (PIEG)

PIEG offers residential customers a $600 rebate for the purchase of an ENERGY STAR qualified Level 2 EV charging station; a $1,500 rebate for the purchase of a new EV; and a $750 rebate for the purchase of a pre-owned EV. For more information, including application materials, see the PIEG Energy Optimization website.

Electric Vehicle (EV) and EV Charging Station Rebates – Cherryland Electric Cooperative

Cherryland Electric Cooperative offers residential customers a $500 rebate for the purchase of a Level 2 EV charging station and a $1,000 rebate for the purchase of a new or pre-owned EV. Cherryland Electric Cooperative also offers commercial customers a $1,000 rebate for the purchase of a Level 2 EV charging station. Rebates are available on a first-come, first-served basis. For more information, including application materials, see the Cherryland Electric Cooperative EVs website.

Laws and Regulations

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.

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)

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 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)

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)

Biodiesel Retail and Storage Requirements

All biodiesel and biodiesel blends sold in Michigan must meet state fuel quality requirements, including ASTM D6751 specification. A refiner, distributor, or retailer cannot transfer or dispense biodiesel or biodiesel blends unless the fuel is visibly free of undissolved water, sediments, and other suspended matter. Additionally, a biodiesel retailer may not sell biodiesel or biodiesel blends drawn from a storage tank that has more than two inches of water or water-alcohol at the bottom. Any retailer of biodiesel or biodiesel blends must obtain a license from the Michigan Department of Agriculture for each operating retail location.

(Reference Michigan Compiled Laws 290.644a and 290.642 through 290.647)

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)

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.