Green Driver State Incentives in Michigan

Michigan offers a handful of green driver incentives to encourage locals to adopt eco-friendly driving habits. Not only does going green help save the planet, it also can save you time and money. Keep reading for details.

As environmental awareness and sensitivity gain more ground, MI green vehicle laws and incentives around green driving might also change. Keep up with the latest by also referencing your local Secretary of State branch and the Alternate Fuels Data Center—regardless of whether you drive an electric car, hybrid, alternative fuel vehicle or are simply in the market to buy a more fuel-efficient car.

Michigan Inspection Exemptions for Alternative Fuel Vehicles

Although Michigan does not test emissions for the purposes of vehicle registration, most vehicles must undergo an inspection. However, if you drive a qualifying alternative fuel vehicle (AFV), you're off the hook. That's because Michigan exempts vehicles that only have an alternative fuel as their fuel source from being inspected. Some alternative fuels include:

  • Compressed natural gas (CNG).
  • Diesel fuel.
  • Propane.
  • Electricity.

For full details on exemptions and what the State considers an alternative fuel, consult your local branch or the Michigan Compiled Laws 324.6311 and 324.6512.

Additionally, new motor vehicles can also forego this inspection immediately following its first title until the year of the next biennial inspection.

Federal Tax Credits

At this time, Michigan does not offer state tax incentives to green-minded drivers. However, if you purchase a qualifying eco-friendly vehicle, you can take advantage of a federal tax break. Eligible alternative energy vehicles include:

  • Electric cars (EV.)
  • Hybrids.
  • Plug-in hybrids (PEV).
  • Diesels.
  • Alternative fuel vehicles (AFV).

For additional information on federal tax credits, jump over to

If you need filing help or have tax-related questions, consider consulting a tax professional, your local IRS Taxpayer Assistance Center, or the Michigan Department of Treasury.

Auto Insurance Discounts for Eco-Friendly Driving and Green Vehicles

To encourage customers to adopt greener driving habits (including buying a fuel-efficient vehicle), some Michigan auto insurance companies offer discounts to drivers. Consult your car insurance company about potential green vehicle discounts such as:

  • Alternative fuel vehicle (AFV) discounts.
  • Hybrid auto discounts.
  • Low-mileage discounts.
  • Economy car discounts.
  • Pay as you drive discounts.

Not all auto insurance providers offer same discounts. You have to shop around and compare. How much you'll save will depend on your vehicle, your circumstances and the insurance company. Some policies offer up to 10% discount on car insurance for leasing or buying a hybrid car. If you keep the per year mileage low you may qualify for even higher discounts

You may be able to save some green for having an eco-friendly vehicle. The smartest thing is to do iscompare auto insurance rates online.

MI Electric Vehicle Charging Incentives

Indiana Michigan Power and Consumers Energy each offer local customers two incentives for making the switch to plug-in electric vehicles:

  • Reduced rates for off-peak charging.
  • $2,500 rebates for installing an at-home charging station.

If you currently own a PEV or are in the market to buy an electric car, read on.

Reduced PEV Charging Rates

Save money by charging your electric vehicle when grid demand is low. Each company offers a break on rates.

Indiana Michigan Power—Michigan PEV owners receive special rates for charging their vehicle at low-demand times. For more on off-peak hours and how to take advantage of the reduced rate, contact Indian Michigan Power at (800) 311-6424.

Consumers Energy—You can combine EV charging with all other household electric use with Consumer Energy's low-cost Residential Home and Plug-in Electric Vehicle Time-of-Day Rate (REV-1). You don't need additional metering with this reduced-rate option for off-peak charging. To learn more, including how to apply and details on the peak time pricing table, check out Consumer Energy’s PEV Rates page.

Home Charging Station Rebates

Indiana Michigan Power—To qualify for the $2,500 rebate, you must:

  • Own a plug-in electric vehicle.
  • Live within Indiana Michigan Power's service area.
  • Have a licensed electrician install your at-home charging stating inline with National Electric Code requirements.

Indiana Michigan Power is only rewarding 250 qualified EV owners with the sizable rebate. Call (800) 311-6424 for further details.

Consumers Energy—The Plug-in Electric Vehicle Incentive Program ended in 2014. New programs are started frequently so it's a good idea to check with Consumer Energy at (877) 904-9246 to see if they offering any incentives before you purchase your vehicle.

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