Exempts the use of electric fuel to propel a vehicle if that use is taxed under the Motor Carrier Fuel Tax Act or the Motor Fuel Tax Act.

This bill is part of a package that also includes HB 5434 and 5435.

The package of MI HB 5433, 5434, 5435 updates Michigan�s tax framework for commercial motor vehicles and alternative fuels. Clarifies that diesel and electric fuel used by interstate motor carriers are taxed under the state�s motor fuel tax systems rather than the use tax, preventing double taxation and establishing consistent treatment for emerging electric truck technology.

The House substitute exempts the use of electric fuel to propel a vehicle if that use is taxed under the Motor Carrier Fuel Tax Act or the Motor Fuel Tax Act.

The bill updates the Use Tax Act to use the Motor Carrier Fuel Tax Act�s definition of �qualified commercial motor vehicle,� aligning commercial vehicle classification across tax statutes. Clarifies which heavy vehicles are covered for use tax exemptions and reporting, which may affect interstate and freight operations indirectly.

Defines "qualified commercial motor vehicle� as one that that transports persons or property and meets any of the following:
3 or more axles, regardless of weight
2 axles with GVW of 26,000 lbs
Combination vehicle with GVW 26,000 lbs

Pending House action. Part of package with HB 5434 and 5435.

12/23/2025 Introduced. Read first time.
12/23/2025 Referred to House Committee on Transportation and Infrastructure.
03/10/2026 Reported from Committee with recommendation for passage of substitute. Referred to second reading in House.