Benefits

Benefits Tax Credits

In August 2005, the first national energy bill in more than a decade was signed into law. It contains tax incentives to encourage energy efficiency and conservation in America’s homes and buildings. It includes energy efficiency tax incentives for making improvements to new and existing homes, manufactured homes and commercial buildings.

With energy costs skyrocketing, these tax incentives will help homeowners and builders make improvements to new and existing homes and buildings, which account for more than 40% of all energy used in the US.

  • The tax credits that were previously effective for 2009, have been extended to 2010.
  • The tax credit has been raised from 10% to 30%.
  • The tax credits that were for a specific dollar amount, have been converted to 30% of the cost.

To qualify for an insulation tax credit, the insulation must meet the 2009 IECC & Amendments. Tax credits cover 30% of cost, up to $1,500 (subject to a $1,500 maximum per homeowner for all improvements combined) For insulation to qualify, its primary purpose must be to insulate. Must be expected to last 5 years OR have a 2 year warranty. Click here for more information and to see if you qualify for a federal tax credit.

Beginning in 2009, certain Michigan taxpayers are eligible for a tax credit for the purchase and installation of qualifying energy efficient home improvements. In order to claim the tax credit, persons filing single returns must have an annual income of $37,500 or less and married couples filing jointly must have an annual income of $75,000 or less.

All equipment must meet the EPA Energy Star efficiency criteria. The items must be intended for residential or non-commercial use. The amount of the credit is 10% of the installed cost of each improvement, up to $75 for single filers and $150 for joint filers. A taxpayer may not make more than one claim under each equipment category during a single tax year. If the amount of the credit exceeds a taxpayer's tax liability for a given year, the balance will be refunded. The credit only applies to equipment purchased after December 31, 2008 and before January 1, 2012. The product is in fact recommended for use in homes for many environmentally concerned or sensitive people. Click here for more information and to see if you qualify for a Michigan tax credit.