LANSING – In order to encourage and increase energy efficiency in Michigan homes, State Representative Jon Switalski (D-Warren) on Wednesday announced a plan to create a state income tax credit for homeowners who buy "green" homes or make "green" home improvements.
"Every home uses energy, and every homeowner can improve their home's energy efficiency," Switalski said. "This piece of legislation helps residents afford energy efficient homes or make energy efficiency upgrades. It will help lessen our dependence on oil, natural gas and coal; put more money in our residents' pockets; and provide more jobs for contractors and home energy auditors."
Switalski's 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.
"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," Switalski said. "Tax credits such as this will help encourage more residents to convert to 'green energy' and will help save them money on their monthly energy bills. This plan is a step in the right direction toward reducing our energy costs and consumption, and providing more 21st Century jobs for Michigan."