The “MI Vehicle Rebate” program, proposed by Governor Gretchen Whitmer, might save Michigan consumers a lot on new cars. This is her third attempt to create a state automobile sales tax savings plan. This plan offers discounts for vehicle types other than electric vehicles, unlike her prior plans.
Up to $2,500 Discounts Proposed for UAW Electric and Hybrid Models
Whitmer’s current proposal offers discounts, with the highest being $2,500 for a UAW battery electric or hybrid vehicle. Vehicle type and manufacturing conditions determine rebate amounts, which range from $2,000 to $1,000. This proposal was supported by the head of the Michigan Automobile Dealers Association, who stressed its direct support for people and the state’s economy’s need for new vehicle sales.
Whitmer has failed to get her electric vehicle incentive and tax exemptions into the final budget bills. The governor has halved the “MI Vehicle Rebate” funding to $25 million this time. The plan now includes a modest tax incentive for regular combustion engine vehicles, unlike prior versions that only encouraged electric vehicle purchases.
Whitmer will request funds from the Legislature during her State of the State address. Note that the program runs until all monies are used. The governor linked this program to the recent UAW-Detroit Three automotive contract deals, underlining Michigan’s auto industry’s importance to the economy.
Comprehensive Auto Incentive Plan
Despite Whitmer’s support for electric cars, her plan includes incentives for gas cars. Press Secretary Stacey LaRouche said the administration’s “North Star” seeks to cut expenses and boost the state economy, encouraging electric and internal combustion engine automobiles.
The recent 46-day UAW strike did not materially damage car sales, auto industry observers said. High borrowing rates and transaction costs prevent new or used auto sales from rising. Whitmer’s office says her tax rebate could save purchasers up to $10,000 when combined with federal incentives.
The bill shows Whitmer’s continuous efforts to promote Michigan’s auto industry, boosting economic growth and benefiting new car buyers.