Michigan Incentives and Laws for Propane (LPG)

The list below contains summaries of all Michigan incentives and laws related to Propane (LPG).

State Incentives

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

Taxpayers certified by the Michigan NextEnergy Authority (MNEA) may claim a nonrefundable 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, and hydrogen vehicles. Renewable fuels include biodiesel blends of at least 20%. Additionally, businesses located within the designated Alternative Energy Zone that are engaged in qualified activities may claim a credit for the taxpayer's 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 which 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, or alternative fuel vehicles and their components. In order to qualify for the tax exemptions, an industrial facility must obtain an exemption certificate for the property from the State Tax Commission. (Reference Michigan Compiled Laws 207.552 and 207.803)

Alternative Fuel Vehicle (AFV) Emissions Inspection Exemption

Dedicated AFVs powered by compressed natural gas, propane, electricity, or any other source as defined by rule promulgated by the Michigan Department of Transportation are exempt from emissions inspection requirements. (Reference Michigan Compiled Laws 324.6311 and 324.6512)

Utility/Private Incentives

Alternative Energy Technology Promotion

NextEnergy is an organization with a comprehensive set of actions and incentives designed to help position Michigan as the world's leading center for alternative energy technology, research and development, education, and manufacturing. NextEnergy programs support technologies for both mobile and stationary applications using renewable and distributed energy solutions.

Laws and Regulations

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 is authorized to 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 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 Senate Bill 0428, 2009, and Michigan Compiled Laws 125.2152-125.2162c)

Advanced Vehicle Acquisition and Alternative Fuel Use Requirement

The Michigan Department of Management and Budget (DMB) is required to continue to comply with the requirements of the federal Energy Policy Act of 1992. The DMB 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 DMB 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 22, 2007)

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