LANSING — Governor Gretchen Whitmer announced a new vehicle rebate program in Michigan that would save Michiganders $1,000 to $10,000 per new car. The rebate will cover new electric, hybrid and traditional combustion engine vehicle sales.
“MI Vehicle Rebate will save you money on your new car as you walk out of the dealership with your keys,” said Governor Gretchen Whitmer. “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.”
The new state tax rebate will lower the cost of a new electric, hybrid, or traditional vehicle between $1,000 and $2,500 per vehicle, which could save Michiganders up to $10,000 when combined with federal incentives. Michiganders will receive 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 MI Vehicle Rebate does not apply to used vehicles.
“Michigan’s licensed new vehicle dealers are excited to hear about the new-vehicle incentive program proposed by Governor Whitmer,” said Cliff Cicotte, President, Michigan Automobile Dealers Association. “This program will directly support Michigan residents, while also highlighting the importance of New Vehicle sales to our state economy. New vehicle dealers across Michigan look forward to the opportunity to collaborate with state leaders to seamlessly implement and promote this incentive program.”
The Blue Green Alliance, an organization focused on both good-paying jobs and protecting the environment spoke out in support of the rebate program.
“Michigan has led the world in producing traditional vehicles and it should lead in producing EVs,” said Frank Houston, Blue Green Alliance, Michigan Regional Program Manager. “The incentives introduced today will not only help reduce auto pollution but will also support and create good union jobs in communities across the state. We thank Gov. Whitmer for her leadership and look forward to continuing to work with her on this and other initiatives to protect our environment and public health while supporting industries that help drive economic opportunity for Michigan.”
If allocated by the Michigan legislature, the state tax rebate will be applied to the final price of a vehicle at the time of purchase. Once an individual selects the new vehicle that they intend to purchase, the auto dealership contacts the Department of Treasury to receive a tax rebate voucher. The licensed new vehicle dealership subtracts the rebate amount from final purchase price based on the vehicle category and rebate amount. The rebate will continue until Michiganders realize all savings in the $25 million program.
