Michigan Incentives and Laws for HEVs / PHEVs

The list below contains summaries of all Michigan incentives and laws related to HEVs / PHEVs.

State Incentives

Advanced Vehicle Battery Manufacturer Tax Credits

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)

Hybrid Electric Vehicle Research and Development Tax Credit

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)

Alternative Fuel and Vehicle Research, Development, and Manufacturing Tax Credits

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)

Alternative Fuel Development Property Tax Exemption

A tax exemption may apply to industrial property that is used for, among other purposes, high-technology activities or the creation or synthesis of biodiesel fuel. 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)

Alternative Fuel Vehicle (AFV) Tax Exemption

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 207.82 and 211.9(i))

Utility/Private Incentives

Electric Vehicle Supply Equipment (EVSE) Incentive - Coulomb Technologies

Coulomb Technologies' ChargePoint America program offers EVSE at no cost to individuals or entities in southern Michigan. To be eligible for a public or commercial charging system, an entity must be located within the specified metropolitan areas (including Detroit, Ann Arbor, Lansing, and Grand Rapids) and in defined potentially "high use" areas, and provide public access to the charging system. Companies and municipalities may apply on the ChargePoint America Web site. To be eligible for free home charging stations, individuals living within the specified areas must purchase a qualified electric vehicle (EV) or plug-in hybrid electric vehicle (PHEV). Individuals purchasing an eligible EV or PHEV should apply for the ChargePoint America program at the dealership or with the vehicle manufacturer at the time of vehicle purchase. 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.

Plug-In Electric Vehicle Charging Rate Reduction - DTE Energy

DTE Energy offers a reduced electricity rate to qualified residential customers for charging all-electric and plug-in hybrid electric vehicles during off-peak hours. A flat rate option is also available. For rate information, see the DTE Energy Plug-In Electric Vehicle Rates website.

Electric Vehicle Supply Equipment (EVSE) Rebate - DTE Energy

DTE Energy will provide a $2,500 rebate for the purchase and installation of separately metered EVSE to the first 2,500 qualified customers who purchase all-electric or plug-in hybrid electric vehicles and enroll in the DTE plug-in electric vehicle rate. For additional information, see the Plug-In Electric Vehicle Program website.

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