Michigan Governor Gretchen Whitmer is set to introduce a $2,500 state-level tax rebate for the purchase of a new EV this week.
According to The Detroit News, up to $2,000 of the rebate can be used toward a car purchase, while $500 can be used to purchase a charging stall, charging chords or other related charging equipment.
Whitmer is expected to announce the new initiative during a press conference on Wednesday, in which she’ll provide more details on her plan for Michigan to secure more automotive manufacturing investment for EVs and eco-friendly vehicles.
The Michigan Economic Development Board previously approved $824 million in incentives for General Motors to build two separate new EV and battery manufacturing plants in the state. These investments, which will be made in Lansing and Orion Township, will help ensure Michigan remains a manufacturing hub for the Detroit Big Three even amid the transition to battery-electric vehicles.
Michigan officials sought out GM for additional investment in order to offset the effects of Ford’s decision to skip over its home state and build new electric vehicle and battery plants in Kentucky and Tennessee – investments that will total a sizable $11.4 billion.
The new $2,500 state-level rebate is expected to help drive EV adoption in the state. roughly 15,000 electric vehicles were sold in Michigan in 2020, according to data from the Alliance for Automotive Innovation, as cited by The Detroit News. The EV adoption rate in the state should begin to climb once the Detroit Big Three begin offering more EVs, especially larger offerings like the Ford F-150 Lightning, Chevy Silverado EV and Cadillac Lyriq.
In a statement sent to The Detroit News, Stellantis offered its support for the new Michigan EV tax incentives, saying such measures would help support the creation and sustentation of middle-class jobs in the state,
“Consumer tax incentives at the point of sale will further help this critical transformation by making electrified vehicles more affordable for more consumers — an economic environment that will support well-paying, middle-class jobs in the state’s largest industry,” the statement said.