LANSING – State Representative Jeff Mayes (D-Bay City) today voted in support of a plan to encourage and increase energy efficiency in Michigan homes by creating a state income tax credit totaling nearly $5,000 for homeowners who buy "green" homes or make "green" home improvements.
"Michigan residents cannot afford to remain captive to paying ridiculously high fees for electricity, coal or natural gas in order to meet their energy needs," said Mayes, Vice-Chair of the House Energy and Technology Committee. "This new tax credit not only encourages more residents to seek out ways to use green energy at home, but it also helps keep more money in our residents' pocketbooks. This plan is yet another step in the right direction toward reducing our energy consumption and dependence."
The plan will provide tax credits for taxpayers who purchase "green" homes or make "green" renovations or additions to their residence. 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.
The Michigan House continues to encourage increased energy efficiency by creating tax these types of tax credits. Earlier this year, lawmakers created 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.
"As I work to move our great state forward, I will continue to fight to change Michigan's energy standards," Mayes said. "Now is the time to take control of our own energy needs and this tax credit will help homeowners do just that. Taking simple steps toward increasing energy efficiency in homes across the state is one of the best ways to reduce energy costs for all Michigan residents."