Clean Fuels Michigan applauds nearly $500 million of clean mobility incentives in Governor Whitmer’s budget proposal

February 8, 2023

Today, Governor Whitmer released her budget proposal, which includes more than $498 million for grants, tax credits, and programs that will accelerate the transition to cleaner mobility in Michigan. Clean Fuels Michigan has been working with our members and partners to suggest budget investments for months, and we are excited to share that most of our proposals are included in the Governor’s budget. 

Programs and incentives outlined in the budget include:

  • $150 million for electric school buses
  • $65 million for EV charging to support fleet electrification, at-home charging, multifamily dwellings, and community charging needs
  • $45 million for public fleets like transit agencies, airports, and local governments to purchase alternative fuel vehicles 
  • $10 million for the state fleet to convert to electric vehicles  
  • $160 million for transit capital grants to plan for and transition to cleaner modalities
  • $15M for a critical minerals recycling and reuse program to bolster the EV supply chain
  • $5 million for the Office of Future Mobility and Electrification to support clean mobility projects in Southeastern Michigan 
  • Approximately $48 million for sales tax incentives of up to $2,400 for the purchase of a new, used, or leased electric vehicle 

“These budget investments focus on key areas that need support today, including sourcing critical minerals, electrifying buses to give kids a clean ride to school, increasing access to EV charging for fleets and families, and transitioning public fleets to alternative fuels,” said Jane McCurry, executive director of Clean Fuels Michigan and a member of the Council on Future Mobility and Electrification. “This slate of incentives will support a thriving clean mobility sector, create good-paying jobs, and increase access to clean mobility solutions across Michigan.”

Notably missing from the investments include incentives for private fleets and an incentive to purchase electric bicycles.  Clean Fuels Michigan looks forward to working with the Administration and the legislature to ensure these proposals are funded.