Energy Efficient Home Improvements Tax Credit

Summary

Note: This tax credit expired as of January 1, 2012. Residents that purchased and installed eligible equipment during the 2011 calendar year may claim the credit on their taxes using Form 4764.

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. Credits are limited to qualified improvements made in principle residences and are not available to renters or for improvements made in second homes. The definition of qualifying home improvements is limited to the following categories:

• insulation
• water heaters
• furnaces
• windows
• refrigerators, clothes washers, and dishwashers

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. In order to claim a credit, tax payers must complete Form 4764 (click here to view 2011 Form).