Two Energy Credits beginning in 2009
Credit is no longer available after December 31, 2011
Energy Home Improvements or Energy Renewable Surcharge Credits Beginning
2009.
Eligible taxpayers may claim two new credits on Michigan income tax returns for tax years 2009, 2010 and 2011.
Home Improvement/Appliances: A Refundable Credit
- Credit is limited to home improvements or appliances purchased for use in the home of a taxpayer
whose principal residence exemption for property taxes is allowed.
This credit is not available to renters, residence of mobile home parks, or
purchases made for a second home.
- Adjusted gross income equal to or less than $37,500 for single/married filing separate & $75,000 for joint filers.
- Credit is equal to 10% of purchase price and installation of the qualified home improvement or energy efficient appliance up to $75 for a single/married filing separate return & $150 on a joint return for purchases from each of the following categories:
1. Insulation
2. Furnace
3. Water heaters
4. Windows
5. Refrigerators, clothes washers and dishwashers
- Credit only applies to purchases made after December 31, 2008 and before January 1, 2012.
Equipment must meet or exceed EPA Energy Star criteria. You must keep proof of equipment cost and efficiency qualifications such as a copy of sales receipt and Energy Star rating information. Treasury may request receipts for claiming this credit.
- Example: A single taxpayer with gross income of $36,000 who purchased and installed an appliance or home improvement from each category listed above (1, 2, 3, 4, and 5) in the same tax year is entitled to a maximum credit of $375.
Energy Renewable Surcharge Credit
- Credit is based on an itemized surcharge
(maximum $3 per month) that appears on residential electric bills as
"renewable energy surcharge" charges. This credit is available to both
homeowners and renters who have paid electric bills for the tax year they are
claiming the credit and have actually paid the renewable energy surcharge.
- Those who qualify for the credit must have a
gross income equal to or less than $65,000 for single/married filing separate
and $130,000 for joint filers.
- Maximum nonrefundable credit allowed is $3 per
meter for 2009, $7.20 per meter for 2010 and 2011. This nonrefundable credit
is equal to 25% of the annual surcharge for 2009, and 20% of the annual
surcharge for 2010 and 2011.
Additional Resources
