DTE offers $2,000 in subsidies, special charging rates for EVs

Electric companies are not a disinterested party in America’s EV transition. They see a way to sell more product, and they facilitate that with subsidies

By James David Dickson | August 8, 2023

DTE Energy, one of Michigan’s two energy giants, offers up to $2,000 in subsidies to people who drive electric vehicles.

The company offers a $1,500 rebate to people who buy or even lease an electric vehicle.

Don’t have an EV? Not to worry, DTE’s EV showroom will help you sort among eligible choices.

There are income limits — $99,440 for a family of three — and only certain EVs are eligible. Leases or purchases made since Dec. 1, 2022, are eligible.

In 2022, Michigan had 36,900 electric vehicles registered, per the U.S. Department of Energy. That’s more than double the 2021 number, 17,500.

Gov. Gretchen Whitmer wants 2 million electric vehicles on Michigan roads by 2030, and she has enlisted the Michigan Department of Environment, Great Lakes and Energy in that goal, as well as the Michigan Public Service Commission.

The public service commission, Michigan’s energy regulator, last year directed DTE to make peak-hour pricing mandatory in Southeast Michigan. All of DTE’s rate plans for EVs include peak-hour charging, and all offer deep discounts for off-peak charging.

DTE offers a $500 rebate to people who install a home charger for their EV. There are three levels of EV chargers; DTE’s rebate applies to level 2 chargers installed after Dec. 31, 2021.

While DTE believes it has the capacity to handle 800,000 EVs in its imprint, the company has struggled during weather-related events, with extended power outages in February, March and July.

After the back-to-back outages in February and March, and losing power for 10 of 14 days, Cathleen Russ of Royal Oak testified before the Michigan House Energy Committee.

“Gov. (Gretchen) Whitmer wants Michigan to be the leader in electric vehicles,” Russ told lawmakers. “I would not accept an EV right now if you gave me one. Gov. Whitmer’s goals and the current state of DTE are clearly at odds.”

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

Michigan bill revives film subsidies, adds cash giveaway for touting state in commercials

Film subsidies failed to have a lasting impact the first time around

By Will Young | August 7, 2023

Michigan lawmakers once created and later ended a program to subsidize companies that make films in the state. A new set of lawmakers is considering plans to revive the subsidies, which could include 35% of the cost of hiring certain workers.

Senate Bill 438 was introduced June 28 by Sen. Dayna Polehanki, D-Livonia. The legislation would give producers a transferable tax credit worth 25% of what they spend in Michigan on certain services and supplies. A producer can receive another 5% for including specific branding references in its product. These references include "filmed in Michigan," "Pure Michigan," "Michigan Film & Digital Media Office," and the Michigan Film Industry Association logo.

Producers can claim a credit for the money they spend on personnel for the next ten years — 20% for hiring nonresidents and 30% for hiring state residents. Producers can get a 5% bonus for buying from businesses owned by women, minorities, people with disabilities or veterans. They also can get 5% for their personnel expenses for hiring minorities, people with disabilities or veterans.

If, for example, the film company has expenses of $100 million, the state will issue a transferable tax credit amounting to 25%, or $25 million.

The legislation allows producers to sell their tax credits to other taxpayers. When a business that holds a tax credit sells it to someone else, it usually does so for less than its full value. The business can then receive a direct cash payment, while the state treasury collects less than it otherwise would.

Producers can claim a credit for purchases from Michigan-based vendors for tangible property and services directly related to their projects. These purchases exclude assets with residual value, as well as durable items. Examples of what the legislation calls “qualified production expenditures” eligible for the credit include facility rentals, transportation expenses within the state and insurance policies purchased from in-state agents. They also include postproduction expenses such as animation, editing, sound recording and visual effects.

Producers might choose to sell their tax credits instead of using them, if their financial situation calls for it. Film productions often require significant amounts of money right away, and selling tax credits allows producers to access much-needed funds quickly.

While Michigan is one of the few states without an active film incentive program, it had one in the past. The program cost taxpayers $500 million during its lifetime. The number of film production jobs increased by fewer than 2,000, according to the Bureau of Labor Statistics.

“A rising tide lifts all boats,” said Michael LaFaive, the Mackinac Center’s senior director of fiscal policy. “Rather than try to subsidize what politicians think should be Michigan’s next big industry, they should create an attractive environment for all and let the economy take care of itself.

“The market has been creating jobs long before government started rolling out fiscal favors,” LaFaive added. “Brands like Kellogg’s and Motown Records were not born of taxpayer subsidies, but from entrepreneurs who thought their own investments might produce a return.”

The bill is now in the Senate Committee on Economic and Community Development.

Will Young is a Michigan Capitol Confidential intern.