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 (10)
• Utility / Private Incentives (10)
• Laws and Regulations (11)

State Incentives

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.

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)

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.

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.

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

Cherryland Electric Cooperative - Michigan

Cherryland Electric Cooperative is a cooperative that operates in Michigan. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Cherryland Electric Cooperative website.

Residential Incentives

Non-Residential Incentives

Consumers Energy - Michigan

Consumers Energy is an investor-owned utility (IOU) that operates in Michigan. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Consumers Energy website.

Residential Incentives

Non-Residential Incentives

DTE Energy - Michigan

DTE Energy is an investor-owned utility (IOU) that operates in Michigan. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the DTE Energy website.

Residential Incentives

Non-Residential Incentives

Great Lakes Energy - Michigan

Great Lakes Energy is a cooperative that operates in Michigan. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Great Lakes Energy website.

Residential Incentives

Non-Residential Incentives

Holland Board of Public Works (HBPW) - Michigan

Holland Board of Public Works (HBPW) is a municipal utility that operates in Michigan. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Holland Board of Public Works (HBPW) website.

Residential Incentives

Non-Residential Incentives

Indiana Michigan Power - Michigan

Indiana Michigan Power is an investor-owned utility (IOU) that operates in multiple states. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Indiana Michigan Power website.

Residential Incentives

Non-Residential Incentives

Lansing Board of Water & Light (BWL) - Michigan

Lansing Board of Water & Light (BWL) is a municipal utility that operates in Michigan. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Lansing Board of Water & Light (BWL) website.

Residential Incentives

Non-Residential Incentives

Michigan Propane Gas Association - Michigan

Michigan Propane Gas Association is utility that operates in Michigan. This page provides a summary of the types of incentives provided by this organization related to alternative fuels and vehicles. For more information on these incentives, see the Michigan Propane Gas Association website.

Residential Incentives

Non-Residential Incentives

Presque Isle Electric & Gas Co-Op - Michigan

Presque Isle Electric & Gas Co-Op is a cooperative that operates in Michigan. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Presque Isle Electric & Gas Co-Op website.

Residential Incentives

Non-Residential Incentives

Xcel Energy - Michigan

Xcel Energy is an investor-owned utility (IOU) that operates in multiple states. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Xcel Energy website.

Residential Incentives

Non-Residential Incentives

Laws and Regulations

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)

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)

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.

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.