Michigan EV Incentives & Rebates: Unlocking The Savings

Michigan does not actively support purchasing electric vehicles or even homeowners converting to solar power in their homes.

At A Glance:

1️⃣ The Federal government provides a $7,500 tax credit for qualifying purchasers of new electric vehicles. 

2️⃣ Similarly, it provides generous tax credits to homeowners converting to solar.

3️⃣ Michigan provides electric vehicle charging rebates to EV owners who install level 2 charging equipment. The electrical utilities offer a wide range of different incentives to install Level 2 chargers and for electric vehicle owners to charge their cars on off-peak periods.

In this article, we look at the Incentives & Rebates available to Michigan residents to convert to EVs. And those who install a solar system that, if sized correctly, will provide the power to recharge the EV.

Overview Of EV Incentives in Michigan

The state is not a leader in EV adoption, with only 0.13% (10,620) of registered vehicles on the roads being EVs. In addition, there are only 834 public charging stations, with only 17 charging points for every 100 EVs.  This is reflected in the lack of state incentives for its citizens to convert to EVs.

EV and solar incentives are structured at several different levels, namely:

• A federal incentive to switch from gas to an electric-powered vehicle.
• A federal incentive to install a solar power system (including an EV charging station) at home.
• A state-wide incentive to purchase an electric vehicle.
• A state incentive to switch a single home power to solar and charge the car using that system.
• Larger level 2 charge installations at multi-dwelling facilities receive direct support to install a level 2 charging system.
• Individual utilities incentivize customers to charge EVs overnight at level 2 charging stations.

The amounts on offer from each source are as follows.

Federal Government EV Incentive

The US government offers a once-off tax credit of up to $7,500 that can be used to offset the owner’s taxes during the year the car was purchased.

If the vehicle was purchased after August 16, 2022, and before January 1, 2023, a tax credit of up to $7,500 will apply if the vehicle’s final assembly is in the US.

Effective January 1, 2023, the credit rules have been amended.

To qualify, vehicles must meet the following specifications:

• The battery capacity must be at least 7 kWh.
• The car must weigh less than 14,000 pounds.
• A qualifying company must manufacture the vehicle (see list).
• The final assembly is done in North America.
• The car is new.
• The vehicle must cost less than $80,000 (this includes vans, SUVs, and pickups) and $55,000 for other vehicles.

The Tax credit applies to any clean vehicle, including FCEVs (Fuel Cell Electric Vehicles), PHEVs (Plug-in Hybrid Electric Vehicles), and some commercial vehicles and SUVs.

📖 Read Next: How The EV Tax Credit Can Benefit You

Federal Incentive To Install A Solar System (including charger)

The scheme allows the homeowner to claim a 30% rebate on their tax return. Based on an estimated $20,000 for an average solar installation, the scheme will provide homeowners an estimated $6,000 in relief.

The incentives provided by individual states also do not affect the value of the federal government’s incentives.

See details of the credit at this link.

Michigan Incentive To Purchase An EV And Recharging Station

There is no direct benefit available from the state to purchase an EV. However, several incentives are available in the state to install a level 2 charger at home and charge the EV at certain times.

• The Residential Electric Vehicle (EV) Charging Station Rebate offers a rebate of $500 to install a level 2 charger or direct current fast charging (DCFC) station at home.
• This amount is increased to $7,500 in a multi-unit dwelling.

💡 Related Articles:
The Federal EV Charger Tax Credit Explained
The Best Level 2 Home Chargers

The following utilities offer various rebates to customers who use a level 2 charging station and participate in a Time-Of-Use  (TOU) program.

Michigan Incentives And Rebates To Convert To Solar

Michigan encourages its citizens to install solar systems in their homes with the following incentives:

1. The Michigan Saves Home Energy Loan Program offers reduced interest rates on solar systems to qualifying buyers.
2. Residents can benefit from the net metering scheme, which credits the value of the electricity supplied back to the system.

How To Take Advantage Of The Federal EV And Solar Incentives

The process with each category of the tax credit is as follows.

EV Credits

To qualify for the government new vehicle EV credits, the modified joint household income must be less than $300,000 ($150,000 for single filers).

The limits on used EVs are $150,000 ($75,000 for single filers).

Qualifying taxpayers will earn the credits when they declare the EV on their IRS returns.

Solar Installation Credits

Similarly, solar installation credits are available to taxpayers who install and commission solar systems during the tax year.

30% of the cost of the installation, with no upper limit, can be claimed under this item. 

The Federal Solar scheme ends in 2035.

How To Take Advantage Of Michigan’s EV Incentives

Homeowners are eligible for interest rates which range from 4.44% to 7.90% APR. Most customers will pay a rate of 5,50%. Payment terms are up to 15 years, and loans up to $50,000 are available.

To apply, the customer must subject themselves to the credit inquiries and terms of the credit provider.

To apply for any of the utility companies’ credits, customers need to complete documentation available from each utility.

The Benefits Of Michigan’s EV Incentives

The state does not provide the level of incentives for EV purchasing and solar installation that other states do.

The state and utilities have concentrated on offering an incentive to install and use level 2 chargers within TOU power delivery times.

With the rebates offered by the utility companies and the ability to be paid for excess electricity sent back to the grid, there are opportunities to reduce the cost of the EV as well as the household electricity expenses. 

The economic benefits of supporting the growth of the EV market in Michigan. 

FAQs 

How Much Does It Cost To Register A Tesla In Michigan? 

Registering a Tesla in Michigan increased to $140.00 for 2022. This is in addition to the standard registration fee of $249.00

This amount is under review as the state has lost out on gas tax, resulting in a road maintenance deficit of $95 million.

Does Michigan Have An EV Rebate? 

Michigan does not have an EV rebate. But the state offers a refund to install a level 2 E charger. The Electricity utilities provide similar incentives and charge rates for the use of Level 2 chargers as well as for EVs being charged in off-peak periods.

Key Takeaways

The state of Michigan is someway behind the rest of the country in terms of public charging infrastructure which is a driving factor for the lack of purchase incentives. 

But the utility rebates for at-home charging infrastructure are some of the best in America.

1️⃣ The federal government provides rebates for EV purchases and for homeowners to convert to solar systems.

2️⃣ Michigan does not offer rebates to purchase EVs.

3️⃣ Michigan and the utilities offer various incentives to install level 2 chargers. And for owners to charge their EVs in off-peak times.