Michigan Could Offer A $2,500 New Car Rebate To Boost The State's Economy
Michigan Governor Gretchen Whitmer has long been a friend of the auto industry, pushing annual proposals for incentives and rebates into the state budget every year. Her most recent proposals have set aside $50 million to assist Michiganders in purchasing electric or hybrid vehicles. As both have been pushed aside by conservative state lawmakers, this year her incentives package request has been cut in half to $25M and allows provisions for incentives to buy new internal combustion vehicles as well. Considering the state’s economic health is heavily dependent on consumers purchasing new vehicles, these incentives could be a political win for Whitmer, if they go through.
The latest proposal would provide a state tax rebate to lower the cost of a new vehicle purchase in tiers based on who made it and what powers it. To qualify for the full $2,500 rebate, your new car purchase would have to be a new EV or hybrid made in a union facility. Non-union-made EVs and hybrids will only qualify for $2,000. If you want to support unions but don’t want an EV or hybrid, your union-made gas or diesel vehicle would still get $1,500 in state incentives. And finally, if you get a gas or diesel car built in a non-union factory, you’ll still get a proposed $1,000 off.
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