LANSING, Mich. (Michigan News Source) – Governor Gretchen Whitmer is expected to ask the legislature to support funding the MI Vehicle Rebate program at the next State of State Address.“MI Vehicle Rebate will save you money on your new car as you walk out of the dealership with your keys,” Governor Gretchen Whitmer said. “Michigan’s auto industry is the backbone of our economy, and this year, the hardworking men and women of the UAW and our world-leading automakers negotiated and ratified a record contract. Now, let’s keep making the world’s best cars and trucks while lowering costs for families by thousands of dollars. Together, we will build and lead the future of mobility and electrification.”

With the new state tax rebate program, Michiganders will save several thousand dollars depending on if it is a new electric, hybrid, or traditional vehicle, and could save up to $10,000 when combined with federal incentives. The tax rebate would fall under four potential categories:

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$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.

Lieutenant Governor Garlin Gilchrist II also shared his enthusiasm for the new program.

“The future of cars, batteries, and tech is being made in Michigan,” said Gilchrist. “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 state tax rebate will be applied to the final price of a vehicle at the time of purchase at which time the auto dealership would work alongside the Department of Treasury to receive a tax rebate voucher.

“Michigan’s licensed new vehicle dealers are excited to hear about the new-vehicle incentive program proposed by Governor Whitmer,” said Cliff Cicotte, President, Michigan Automobile Dealers Association. “This program will directly support Michigan residents, while also highlighting the importance of New Vehicle sales to our state economy. New vehicle dealers across Michigan look forward to the opportunity to collaborate with state leaders to seamlessly implement and promote this incentive program.”

The call for lowering vehicle costs for the consumers comes after the United Auto Workers protested contracts with the record Stand Up Strike, making a concerted effort to strike the Big Three Automakers.

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Ford has also recently announced that it would be cutting back production at a Michigan plant by 50% in the new year for its F-150 Lightning EV pickup.

The MI Vehicle Rebate would not apply to used vehicles.