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Expired, Repealed, and Archived Michigan Incentives and Laws

The following is a list of expired, repealed, and archived incentives, laws, regulations, funding opportunities, or other initiatives related to alternative fuels and vehicles, advanced technologies, or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.

Alternative Fueling Infrastructure Tax Credit

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)

Hybrid Transit Vehicle Promotion

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)

Vehicle Research and Development Promotion

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)

Advanced Vehicle Acquisition and Alternative Fuel Use Requirement

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)

Biofuel Signage Rebate Program

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

Renewable Fuels Commission

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)

E85 Fueling Infrastructure Grant Program

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.

Emission Credit Trading Registry

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.

Alternative Fueling Infrastructure Grants

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)

Transportation Technology Development

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)