Michigan Laws and Incentives

Listed below are the summaries of all current Michigan laws, incentives, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:

State Incentives

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 2207.552 and 207.803-207.809)

Natural Gas Fueling Station Air Quality Permit Exemption

The Michigan Department of Environmental Quality requirement to obtain an installation permit does not apply to qualified natural gas storage and handling equipment at dispensing facilities. (Reference Michigan Air Pollution Control Rule 336.1284)

Alternative Fuel Vehicle (AFV) Emissions Inspection Exemption

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

Utility/Private Incentives

Electric Vehicle Supply Equipment (EVSE) Rebate - Indiana Michigan Power

Indiana Michigan Power provides rebates of up to $2,500 to residential customers who purchase or lease a new plug-in electric vehicle (PEV) and install a Level 2 EVSE with a separate meter. Customers must also sign up for the Indiana Michigan Power PEV time-of-use rate. The rebate is available to the first 250 qualified customers who submit a completed application. For more information, see the Indiana Michigan Power Rates, Programs & Incentives website.

Plug-In Electric Vehicle (PEV) Charging Rate Reduction - Indiana Michigan Power

Indiana Michigan Power offers a special time-of-use rate option to residential customers who own a qualified PEV. For more information, see the Indiana Michigan Power Rates, Programs & Incentives website.

Plug-In Electric Vehicle (PEV) Charging Rate Reduction and Rebate - Consumers Energy

Consumers Energy offers a special time-of-use rate option for PEV owners. For more information, see the Consumers Energy PEV Rate Options website.

Consumers Energy also offers qualified customers a reimbursement of up to $2,500 to cover the purchase, installation, and wiring for qualified Level 2 electric vehicle supply equipment. For more information, see the Consumers Energy PEVs Incentive Program website.

Laws and Regulations

Biofuels Blender Requirements

Blenders of ethanol and gasoline and biodiesel and diesel fuels 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)

Biodiesel Retail and Storage Requirements

All biodiesel and biodiesel blends sold in Michigan must meet state fuel quality requirements, including ASTM D6751 specification. A refiner, distributor, or retailer cannot transfer or dispense biodiesel or biodiesel blends unless the fuel is visibly free of undissolved water, sediments, and other suspended matter. Additionally, a biodiesel retailer may not sell biodiesel or biodiesel blends drawn from a storage tank that has more than two inches of water or water-alcohol at the bottom. Any retailer of biodiesel or biodiesel blends must obtain a license from the Michigan Department of Agriculture for each operating retail location. (Reference Michigan Compiled Laws 290.642-290.647)

Hydrogen Production and Retail Requirements

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)