Expired, Repealed, and Archived Michigan Incentives and Laws
The following is a list of expired, repealed, and archived incentives, laws, regulations, funding opportunities, or other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality.
Entities blending ethanol with gasoline and biodiesel with diesel outside of the bulk transfer terminal system must obtain a blender's license and are subject to blender reporting requirements. A licensed supplier who blends ethanol and gasoline or biodiesel and diesel fuels must also obtain a blender's license. (Reference Michigan Compiled Laws 207.1008)
The Clean Energy Coalition offers grants of up to $10,000 per facility for the cost of purchasing and installing fueling infrastructure necessary to dispense ethanol blends between 15% (E15) and 85% (E85). New infrastructure as well as the conversion of existing infrastructure is eligible. Grants are available for retail and fleet fueling locations that are open to the public, and the infrastructure must be in place and available for use by December 31, 2013. Additional terms and conditions apply. For more information, see the Clean Energy Coalition website.
DTE Energy will provide up to $2,500 for the purchase and installation of separately metered EVSE to the first 2,500 qualified customers who purchase plug-in electric vehicles (PEVs) and enroll in the DTE PEV rate. The program will expire in December 2014 or until the program has been fully subscribed, whichever occurs first. For additional information, see the DTE Energy Plug-In Electric Vehicles website.
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))
The Michigan Department of Technology, Management, and Budget (DTMB) and the Department of Transportation must develop a Truck Idling Program for the state's fleet of motor vehicles, buses, and heavy-duty equipment. Additionally, the Department of Natural Resources and the Environment and the DTMB must develop an Eco-Driver Program for all employees using state vehicles. This program will provide education and training materials designed to maximize vehicle fuel economy by educating drivers on how driving patterns, vehicle technologies, and vehicle maintenance impact fuel economy. The Eco-Driver Program will serve as a model for the future development of an Eco-Driver Program targeted towards the general public. (Reference Executive Directive 2009-4)
Coulomb Technologies' ChargePoint America program offers EVSE at no cost to individuals or entities in southern Michigan. To be eligible for free home charging stations, individuals living within the specified areas must purchase a qualified plug-in electric vehicle. Application information is available on the ChargePoint America website. In most cases, installation will be paid for by the EVSE owner; some cities, states, and utilities, however, will provide funding towards installation costs. All participants in the ChargePoint America program must agree to anonymous data collection after installation. Additional restrictions may apply.
Michigan has joined Indiana, Iowa, Kansas, Minnesota, Ohio, South Dakota, and Wisconsin in adopting the Energy Security and Climate Stewardship Platform Plan (Platform), which establishes shared goals for the Midwest region, including increased biofuels production and use. Specifically, the Platform sets the following goals:
- Produce commercially available cellulosic ethanol and other low carbon fuels in the region by 2012;
- Increase E85 availability at retail fueling stations in the region to 15% of stations by 2015, 20% by 2020, and 33% of all fueling stations in the region by 2025;
- Reduce the amount of fossil fuel that is used in the production of biofuels by 50% by 2025; and
- By 2025, at least 50% of all transportation fuels consumed in the Midwest will be from regionally produced biofuels and other low carbon transportation fuels.
The Platform also establishes a regional biofuels corridor program. The program directs state transportation, agriculture, and regulatory officials to develop a system of coordinated signage across the region for biofuels and advanced transportation fuels and to collaborate to create regional E85 corridors. The program requires standardized fuel product coding at fueling stations as well as increased education for retailers about converting existing fueling infrastructure to dispense E85.
The Michigan Department of Energy, Labor and Economic Growth (DELEG) offers an income tax credit to fueling station owners who convert existing fuel delivery systems or install new systems to provide E85 or biodiesel blends to the public. The tax credit is for 30% of the eligible costs of an installed or converted fuel delivery system with a maximum tax credit of $20,000 per applicant. To qualify, a station owner must apply for a certificate of eligibility from DELEG and provide documentation for the equipment purchased. Each installation will be inspected to ensure all work has been completed and E85 or biodiesel is being dispensed to the public. Any federal and state grants and incentives the station owner receives will be subtracted from the cost of the project before computing the amount of the tax credit. Federal tax credits do not need to be subtracted when determining the tax credit amount. The tax credit is available for projects completed between January 1, 2009, and December 31, 2011. (Reference Act 39 of 2011, and Michigan Compiled Laws 208.1460)
The Michigan Department of Transportation must coordinate with the Michigan Economic Development Corporation to promote the transition of transit bus fleets to hybrid vehicles with improved fuel economy. (Reference Senate Bill 254, 2009)
Qualified advanced vehicle research and development projects may be eligible for financing under the Local Development Financing Act. A municipality may create a local development financing authority that may borrow against future tax increment financing to pay for public infrastructure improvements that will attract economic development projects. The Michigan Economic Development Corporation (MEDC) may designate all or part of a local development financing authority district as a "certified alternative energy park" to attract businesses engaged in alternative energy projects, including research and development of alternative energy vehicles. MEDC may designate up to ten alternative energy parks through December 31, 2011. (Reference Michigan Compiled Laws 125.2152-125.2162c)
The following was repealed by Public Act 39, 2011: Manufacturers of traction battery packs for use in vehicles may qualify for a tax credit from the Michigan Economic Development Corporation for tax years beginning on or after January 1, 2010 and ending before January 1, 2015. The amount of the credit is based on kilowatt hours (kWh) of battery capacity. Qualified batteries must have a traction battery capacity of at least 4 kWh, be equipped with an electrical plug for charging purposes, and be installed in a new, qualified plug-in electric drive motor vehicle that qualifies for the federal tax credit specified in 26 U.S. Code 30D.
Beginning January 1, 2012, a manufacturer may claim a tax credit of up to 75% of the qualified expenses for vehicle engineering to support battery integration, prototyping, and launching, so long as the expenses are incurred between January 1, 2009, and January 1, 2014. The same credit is available to a manufacturer that increases its engineering activities for advanced automotive battery technologies.
Taxpayers also may claim a tax credit equal to 50% of the capital investment expenses for the construction of an integrative cell manufacturing facility that includes anode and cathode manufacturing and cell assembly if the project creates at least 300 new jobs in the state. Taxpayers that have received federal loan guarantees may claim a credit equal to 25% of the capital investment expenses for the construction of a facility that will produce large scale batteries and manufacture integrated power management, smart control, and storage systems if the project creates at least 500 new jobs in the state.
(Reference Michigan Compiled Laws 208.1434)
The following was repealed by Public Act 39, 2011: Qualified taxpayers may claim a non-refundable credit for tax liability attributable to research, development, or manufacturing of qualified alternative fuel vehicles (AFVs) and renewable fuel. For the purpose of this incentive, AFVs include fuel cell, electric, hybrid electric, natural gas, E85, liquefied petroleum gas or propane, and hydrogen vehicles. Renewable fuels include biodiesel blends of at least 20%. The Michigan NextEnergy Authority must certify eligible taxpayers. Additionally, businesses located within the designated Alternative Energy Zone that are engaged in qualified activities may claim a credit for the qualified payroll amount. (Reference Michigan Compiled Laws 207.821-207.827 and 208.1429)
The following was repealed by Public Act 39, 2011: A taxpayer engaged in research and development of a qualified hybrid system that has the primary purpose of propelling a motor vehicle may claim a tax credit under the Michigan Business Tax through December 31, 2015. This tax credit is equal to 3.9% of all wages, salaries, fees, bonuses, commissions, or other payments made in the taxable year on behalf of or for the benefit of employees for services performed in a qualified facility. The maximum amount of credit allowed for any one taxpayer is $2 million per tax year. (Reference (Reference Michigan Compiled Laws 208.1101-208.1601)
The Michigan Department of Technology, Management, and Budget (DTMB) is required to continue to comply with the requirements of the federal Energy Policy Act of 1992. The DTMB must include hybrid electric vehicles within the state's fleet if the vehicles are determined to be cost effective and capable of meeting the state's transportation needs. In addition, as the state's public alternative fuel fueling infrastructure continues to develop, the state's alternative fuel vehicle fleet is required to fuel with, and operate using, alternative fuels to the extent possible. The DTMB will develop rules to encourage or require the use of diesel fuel with the highest percentage of biodiesel content available for diesel-powered vehicles in the state fleet. (Reference Executive Directive 2007-22)
The Michigan Department of Energy, Labor and Economic Growth provides rebates to enable retail service stations located near interstate highways to advertise the availability of E85 or biodiesel blends (B20) on highway exit signs. Retail stations offering these fuel types and participating in the Michigan Department of Transportation Logo Sign Program are eligible for rebates of up to $1,500 to help cover up to 50% of the costs to design, install, and pay the first year's annual fee for signage. Fueling station owners who received a rebate during the program's first year are eligible to apply for a rebate to cover 50% of the second year's annual fee for the sign. For more information, see the Biofuel Signage Rebate Program Application Form (PDF 70 KB). Download Adobe Reader
The Michigan Renewable Fuels Commission (Commission) was established within the Michigan Department of Agriculture to investigate and recommend strategies that the governor and legislature may implement to promote the use of renewable fuels and alternative fuel vehicles (AFVs). The Commission will also identify mechanisms that promote renewable fuel research and effective communication and coordination of efforts between state and local governments, private industry, and institutes of higher education. The commission may also review any state regulation that may hinder the use, research, and development of renewable fuels and AFVs, and recommend changes to the governor. In June 2007, the Commission submitted a report on its investigation and recommendations to the legislature and the governor (PDF 453 KB) Download Adobe Reader. The Commission must issue follow-up reports at least annually through January 1, 2010. (Reference Michigan Compiled Laws 290.581-290.586)
The E85 Infrastructure Conversion Project provides funding to retail and public fleet fueling locations to purchase and install materials and equipment compatible with E85, to clean tanks, and to purchase dispensing equipment and on-site signage advertising E85. Funding of up to $5,000 per facility, not exceeding 50% of E85 conversion costs, is available through the Clean Energy Coalition. For more information, see the Clean Energy Coalition Web site.
Michigan's Emission Trading Registry provides information regarding the generation, use, and trading of Emission Reduction Credits (ERCs) under the Michigan Air Emission Trading Program. This voluntary, statewide emissions trading program allows ERCs to be traded or retained for future use based on an emission reductions basis.
Qualified service station owners and operators may receive matching grants to convert existing, and install new, fuel delivery systems designed to provide E85 and biodiesel blends. Grants may not exceed 75% of the costs to convert existing fueling infrastructure, up to $3,000 per facility. Grants may not exceed 50% of the construction costs to install new fueling infrastructure, up to $12,000 per facility for E85 and $4,000 per facility for biodiesel blends. Other funding limitations may apply. For the purpose of this grant program, biodiesel must meet the ASTM D6751 specification and be approved by the Michigan Department of Agriculture. E85 is defined as a fuel blend that contains between 70% and 85% denatured ethanol and meets ASTM D5798 specifications. (Reference Michigan Compiled Laws 125.2078)
The Michigan Department of Transportation is directed to work with public agencies and private companies to facilitate the development of multi-modal transportation systems involving the use of magnetic levitation rail systems and solar-powered hydrogen production and hydrogen fuel cell technology. (Reference Public Act 162, 2003)