The list below contains summaries of all Michigan incentives and laws related to Hydrogen Fuel Cells.
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)
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)
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)
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:
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))
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 290.642-290.647)