Gov. Gretchen Whitmer proposed up to a new $2,500 state tax rebate for a new electric, hybrid, or traditional vehicle.
In the upcoming State of the State address, Whitmer will ask the legislature to allocate $25 million to fund the MI Vehicle Rebate program, which wouldn’t apply to used vehicles.
“MI Vehicle Rebate will save you money on your new car as you walk out of the dealership with your keys,” Whitmer said in a statement. “Michigan’s auto industry is the backbone of our economy, and this year, the hardworking men and women of the UAW and our world-leading automakers negotiated and ratified a record contract. Now, let’s keep making the world’s best cars and trucks while lowering costs for families by thousands of dollars. Together, we will build and lead the future of mobility and electrification.”
Combined with the federal tax credit, Michiganders could save up to $10,000 on the cost of certain EVs. Whitmer proposed the tax rebate on new vehicles under four categories:
* $2,500 on a new battery electric or hybrid vehicle manufactured in a facility where the workers are represented by an automotive union.
* $2,000 on a new battery electric or hybrid vehicle.
* $1,500 on a new internal combustion vehicle in a facility where the workers are represented by an automotive union.
* $1,000 on all other new internal combustion vehicles.
The state tax rebate would be applied to the final price of a vehicle at purchase. Once an individual selects the new vehicle they intend to buy, the auto dealership would contact the Department of Treasury to receive a tax rebate voucher. The licensed new vehicle dealership subtracts the rebate amount from the final purchase price based on the vehicle category and rebate amount.
If enacted, the rebate will continue until funds are depleted.
