1. 🚀 Federal EV Tax Credits (Section 30D & 25E)
- New EVs: Up to $7,500 under federal Section 30D; applies to qualifying all‑electric and plug‑in hybrids assembled in North America, meeting MSRP and income caps ($55K sedans / $80K SUVs; AGI up to ~$300K joint filer)
- Used EVs: Under federal Section 25E, up to $4,000 or 30% of purchase price. Buyer income limits: ≤ $150K joint, ≤ $75K single; vehicle cap ≤ $25,000
- You can transfer credits directly to the dealership at purchase—avoiding waiting for tax filing and boosting purchase-ready affordability .
⚠️ Federal credit programs are scheduled to expire on September 30, 2025 unless extended; demand and eligible models are already narrowing due to stricter sourcing rules
2. 🏛️ Michigan EV Tax Credits – “MI Vehicle Rebate” (Proposed, Not Yet Active)
While there are currently no Michigan EV tax credits, a proposal introduced in December 2023 would add a rebate stackable with federal credits:
- $2,500 for union‑made new EVs or plug‑in hybrids
- $2,000 for non‑union new EVs/hybrids
- (Also includes rebates for new internal combustion vehicles: $1,500 union-made, $1,000 otherwise)
If passed and funded, combined savings could reach $10,000 off a new EV purchase—but the program remains unapproved and unfunded as of August 2025 Michigan.gov.
3. ⚡ EV Charger Tax Credits & State Grants
Federal Charger Tax Credit (Section 30C)
- Up to 30% credit, with a $1,000 cap per Level 2 home charger installation; certified hardware required
State and Utility Rebates
Utility providers across Michigan offer generous rebates to support both public and private charging:
Residential (Level 2 home chargers):
- Consumers Energy: $500 standard; up to $1,000 for income-qualified households Qmerit.
- DTE Energy: $500 rebate when paired with a Time‑of‑Use plan; business rebates available separately
- Municipal utilities and co‑ops: Cherryland ($500), Presque Isle ($600), HomeWorks Tri‑County ($600), Great Lakes Energy ($800), Lansing BWL (up to $1,000 with separate meter), and Energy Smart coalition ($500)
Business or Public Chargers:
- Rebates span $2,000–$14,000 per L2 port, and up to $70,000 per DC fast charger depending on the utility and program
EGLE’s Charge Up Michigan & Commercial Grants
- Charge Up Michigan offers grants up to $70,000 per site (covering up to 33.3% of project costs) for DC fast charging installs, matched with utility funding—reimbursement-based, first-come first-served .
- Clean Fuel & Charging Infrastructure Program provides up to $300,000 in grant funds per project for multifamily housing charging deployments, prioritizing equity communities (no match requirement)
4. 💰 How to Maximize Savings: Estimated Combined Incentives
| Incentive Type | Potential Savings |
|---|---|
| Federal New EV Tax Credit | Up to $7,500 |
| Federal Used EV Credit | Up to $4,000 |
| Michigan State EV Rebate (pending) | $2,000–$2,500 |
| Federal Home Charger Tax Credit | Up to $1,000 per charger |
| Utility Residential Charger Rebate | $500–$1,000 |
| Utility Business/Public Charger Rebate | Up to $70,000 per site |
| EGLE Grant (public or workplace/fleet) | Up to $70K or $300K |
Total potential savings:
- For a new EV owner: up to $7,500 + $2,500 + charger rebates = $10,500–$11,500+ (if state rebate is approved).
- Plus charging equipment or public/fleet installation incentives.
🔍 Summary
- Federal tax credits (up to $7,500 for new, $4,000 for used EVs) remain the strongest driver of savings—but expire September 30, 2025 unless extended.
- No statewide Michigan EV tax credits currently exist, though a rebate proposal is pending approval with potential $2,000–$2,500 value.
- Michigan drivers should combine federal credits with robust local rebates and utility incentives—especially for home or public charger installations.
- Charge Up Michigan and the new multifamily housing charger program offer major grant funding tipping the scale for high-scale electrification projects.
