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:
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 207.803-207.809)
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, hydrogen, and propane 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)
Natural Gas Vehicle (NGV) Weight Exemption
A vehicle primarily powered by natural gas may exceed the state's axle and weight loading limits by a weight equal to the difference between the weight of the vehicle with the natural gas tank and fueling system and the weight of a comparable vehicle with a diesel tank and fueling system. The NGV maximum gross weight may not exceed 82,000 pounds. (Reference Michigan Compiled Laws Section 257.722)
Plug-In Electric Vehicle (PEV) Charging Rate and Infrastructure Rebate - Lansing BWL
The Lansing Board of Water & Light (BWL) offers a pilot PEV time-of-use charging rate to single- or multi-family dwellings of four units or less with separately metered Level 2 electric vehicle supply equipment (EVSE). Additional terms and conditions apply.BWL also offers a reimbursement of up to $1,000 for the purchase and installation of EVSE for customers that have enrolled in the PEV charging rate. The program is limited to the first 10 qualified residential customers, and the deadline to apply is June 30, 2018.For more information, see the BWL PEVs page.
Plug-In Electric Vehicle (PEV) Charging Rate and Infrastructure Rebate - Indiana Michigan Power
Indiana Michigan Power offers a special time-of-use rate option to residential customers who own a qualified PEV.Indiana Michigan Power also provides rebates of up to $2,500 to residential customers who purchase or lease a new 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 - 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.
Plug-In Electric Vehicle Charging Rates - DTE Energy
DTE Energy offers two rate options to qualified residential customers for charging PEVs. The PEV time-of-use rate is available to customers using Level 2 electric vehicle supply equipment and requires a separate meter, which DTE provides. The flat rate option is $46.28 per month for each PEV. For rate information, including how to qualify, see the DTE Energy PEV Rates website.
Laws and Regulations
Alternative Fuel Excise Tax
Beginning January 1, 2018, alternative fuels will be taxed equal to the motor fuel tax on a gallon equivalent basis. Alternative fuels include natural gas, propane, hydrogen, and hythane. A gallon equivalent is defined as 5.660 pounds (lbs.) of compressed natural gas, 6.06 lbs. of liquefied natural gas, 480.11 standard cubic feet of hydrogen, and 162.44 standard cubic feet of hydrogen compressed natural gas. A gallon of propane is measured as 4 quarts or 3.785 liters. (Reference Michigan Compiled Laws 207.1003, 207.1151, and 207.1152)
Alternative Fuel Dealer and Commercial User License
Alternative fuel dealers and alternative fuel commercial users must apply for a license from the Michigan Department of Treasury. Commercial users are defined as those operating vehicles with three or more axles, or two axles and a gross vehicle weight rating exceeding 26,000 pounds, that operate in more than one state. Alternative fuel dealers must pay a license fee of $500 and commercial users must pay a license fee of $50. For the purpose of this requirement alternative fuels include natural gas, propane, hydrogen, and hythane. (Reference Michigan Compiled Laws 207.1151, 207.1153, and 207.211)
Alternative Fuel Commercial User Tax
An alternative fuel commercial user that has not paid fuel taxes to an alternative fuel dealer must file a monthly report with the Michigan Department of Treasury (Department) to determine taxes owed under Michigan Compiled Laws 207.1152. By the twentieth day of each month, users must file the report detailing the number of gallons or gallon equivalents of alternative fuel consumed during the preceding month. Alternative fuel commercial users must pay the full amount of tax due to the Department at the time of filing the report. (Reference Michigan Compiled Laws 207.1154)
Plug-In Electric Vehicle (PEV) Fees
PEVs, are subject to an increased vehicle registration fee. These fees apply to all-electric vehicles (EVs) as well as plug-in hybrid electric vehicles (PHEVs) with a minimum battery capacity of 4 kilowatt-hours. The specific fee increases are as follows:
|Vehicle Type||Gross Vehicle Weight Rating||Fee Increase|
|PHEV||8,000 pounds (lbs.) or less||$30|
|PHEV||> 8,000 lbs.||$100|
|EV||8,000 lbs. or less||$100|
|EV||> 8,000 lbs.||$200|
PHEV fees will increase by $2.50 per $0.01 that the state motor fuel tax exceeds $0.19 and EV fees will increase by $5.00 per $0.01 that the state motor fuel tax exceeds $0.19.
(Reference Michigan Compiled Laws 257.801)
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)