"MI Vehicle Rebate" plan to lower prices & boost sales, Gov. Gretchen Whitmer says

CBS News Detroit Digital Brief for Dec. 13, 2023

LANSING, Mich. (CBS DETROIT) - Governor Gretchen Whitmer announced Wednesday the "MI Vehicle Rebate" plan.

The plan is to boost new electric, hybrid, and traditional combustion vehicle sales in Michigan after the United Auto Workers and Big Three reached a contract, Whitmer said. 

"The future of cars, batteries, and tech is being made in Michigan," Lt. Governor Garlin Gilchrist II said. "The MI Vehicle Rebate plan will lower costs for families, spur vehicle manufacturing, and support both our world-class auto workers and our automakers. Governor Whitmer and I are proud of our efforts alongside the UAW to ensure Michiganders are respected and protected at work, and we will continue working to grow Michigan's economy and cement Michigan as the best place to build a bright future."  

The new state tax rebate is expected to lower the cost of a new electric, hybrid, or traditional vehicle between $1,000-$2,500 per vehicle.

This could save Michigan residents up to $10,000 when combined with federal incentives, Whitmer said. 

According to Whitmer, residents would 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.

Whitmer is expected to ask the legislature in the upcoming State of the State address to allocate $25 million to fund the program. 

The MI Vehicle Rebate doesn't apply to used vehicles, Whitmer said. 

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