LANSING – State Representative Kate Ebli (D-Monroe) today passed a plan to encourage and increase energy efficiency in Michigan homes by creating a state income tax credit totaling nearly $7,000 for homeowners who buy "green" homes or make "green" home improvements.
"This plan is a great way to change the way our residents look at energy use and help them save money," Ebli said. "Encouraging our residents to 'go green' will not only help our working families keep more of their hard-earned money in their pockets, but it will help protect our natural resources and create jobs across the state. Increasing energy efficiency is the surest way to keep energy affordable for consumers and move toward energy independence."
The plan will provide tax credits for taxpayers who purchase "green" homes or make "green" renovations or additions to their residences. Taxpayers can claim $5,000 for each eligible green home, in addition to 30 percent of the cost of any eligible renovations or additions, up to $2,000. The credit can be carried forward for up to four years.
In order to qualify for the tax credit, the eligible home, renovation, or addition must be given a silver-level certification by Green Built Michigan, the National Green Building Program, or any other organization approved by the Department of Energy, Labor and Economic Growth.
Ebli is continuing to encourage increased energy efficiency across Michigan by creating these types of tax credits. Earlier this year, Ebli voted to create a state income tax credit to aid homeowners who purchase energy efficient furnaces, insulation, water heaters, windows, refrigerators, clothes washers and dishwashers. However, homeowners will not be able to combine the two tax credits for a specific item or home improvement.
"With the price of oil, natural gas and coal skyrocketing, we need to do all we can to keep energy costs down for everyone in Michigan," Ebli said. "Providing this incentive to homeowners will lower their monthly bills, control energy costs and help secure our energy future."