$2,000 Builders Tax Credit
Homebuilders are eligible for a $2,000 tax credit for each new energy efficient home that achieves 50% energy savings for heating and cooling over the 2004 International Energy Conservation Code (IECC). The same HERS rating that is used to meet the energy code or earn the ENERGY STAR, is also used to qualify the home for the $2,000 energy efficient home builder tax credit. A HERS rating is used to determine if the existing home (or a set of plans and specs) meets the criteria.
These tax credits apply to new homes located in the United States whose construction is substantially completed after August 8, 2005 and that are acquired from the eligible contractor for use as a residence from January 1, 2006 through December 31, 2009. (Renewal in 2010 is expected)
IRS Notice 2006–27 provides guidance for the credit for building energy efficient homes other than manufactured homes.
Home Efficiency Improvements
Builders and remodelers can take advantage of stimulus legislation that Congress passed in February 2009 that does much to promote energy efficiency. Energy efficiency incentives to upgrade existing homes have been extended and are now available for 2009 and 2010. Incentives are available for many energy improvements such as air sealing, insulation, heating, cooling and water heating equipment. Most of these incentives are for 30% of the total cost, up to a cap of $1,500. For more information regarding the federal incentives, please visit www.energytaxincentives.org.
Michigan Home Improvement Tax Credit
Households with adjusted gross income less than $75,000 are eligible for a tax credit up to $150 for insulation, furnaces, water heaters, windows, refrigerators, clothes washers and dishwashers for the years 2009, 2010 and 2011. For more information, go to www.legislature.michigan.gov.
Michigan Property Improvement Program
Households with incomes of up to $74,750 may borrow up to $50,000 from the State of Michigan to make energy-efficiency improvements. There is no home equity requirement for loans up to $25,000. Interest rates range from 4% to 8%. For more information, go to www.michigan.gov/mshda.
DTE and MichCon are offering rebates on various energy efficiency improvements, as well as on the cost of the energy audit. For more information, go to www.yourenergysavings.com.
Benefits of owning an ENERGY STAR qualified new home include:
- A Nationally Recognized Symbol of Quality and Performance
All ENERGY STAR qualified new homes are certified to meet EPA’s strict guidelines for energy efficiency. This exemplary performance is verified by an independent third party.
- Lower Utility Costs
Compared with standard homes, ENERGY STAR qualified new homes use substantially less energy for heating, cooling, and hot water heating. Homeowners can expect to save about $200–$400 annually on their utility bills.
- More Comfortable/Quieter Homes
The energy-efficient features of ENERGY STAR qualified new homes keep out excessive heat, cold, and noise, and ensure consistent temperatures between and across rooms-making these homes more comfortable to live in.
- Helping to Create a Better Future
When your customers purchase an ENERGY STAR qualified new home, they are joining millions of consumers who have changed to ENERGY STAR, helping our nation reduce our energy needs and building a cleaner environment for the future.