Transportation (Electric Vehicles)

This bill proposes changes to Michigan's vehicle registration laws, specifically affecting how electric vehicles are registered and what fees they must pay. It amends existing sections of the Michigan Vehicle Code to update registration procedures and fee structures for electric vehicles. The legislation would directly impact vehicle owners, dealers, and the state Department of Motor Vehicles by modifying how electric vehicle registrations are processed and fees are calculated. As a companion bill tied with HB 5765, it works alongside related legislation to establish new registration requirements for electric vehicles in Michigan.

This bill establishes a new road usage charge for electric vehicles, self-charging hybrids, and plug-in hybrids in Michigan, starting on January 1, 2027. Vehicle owners can choose between paying a flat annual registration fee or a mileage-based tax that accounts for miles driven within the state. The mileage option requires owners to allow their vehicle's odometer data to be reported to the state, with penalties for tampering with odometers or misreporting mileage. Funds collected from these taxes will be used to administer the program or deposited into the state's transportation fund. The bill also sets rules for how the state will contract with a private company to manage the mileage tracking and billing system.

HB 4721 creates tax credits for biodiesel sales and production in Michigan, effective 2025-2030. Retail fuel dealers receive credits of $0.02-$0.07 per gallon for selling biodiesel blends (6-9%, 10-19%, or 20%+), while biodiesel producers get $0.02 per gallon. Total credits are capped at $16 million annually for retailers and $2 million for producers, with excess claims distributed proportionally. The bill directly affects Michigan fuel retailers and biodiesel producers by reducing their income tax liability based on specific blend volumes sold or produced.

HB 4722 creates tax credits to incentivize biodiesel use in Michigan. Retail fuel dealers selling biodiesel blends (6-9% at $0.02/gal, 10-19% at $0.05/gal, 20%+ at $0.07/gal) can claim credits, while biodiesel producers get $0.02 per gallon produced. Credits apply for tax years 2025-2030, with a $16 million total cap for retailers and a $2 million cap for producers. This directly affects Michigan fuel retailers and biodiesel manufacturers by reducing their income tax liability for qualifying sales and production.

SB 695 allows regional transit authorities in Michigan to charge an extra $1.20 per $1,000 of a vehicle’s value (on top of standard registration fees) for transit funding, but only if approved by voters in a November election. It requires ballot measures to specify how funds will be used and limits spending to transit projects. The tax applies to regular vehicle registrations in transit regions, excluding company test vehicles (e.g., manufacturer-owned vehicles used for testing). It takes effect January 1, 2027, pending approval of related legislation. This change directly affects vehicle owners in participating transit regions through their registration costs.