New Stimulus Bill Has Affected the Tax Credits for Energy Efficient Home Improvements - General Information
On February 17, 2009 President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some significant changes to the energy efficiency tax credits.
Ask a tax consultant for specific information and relevancy.
Tax Incentives based on the American Recovery and Reinvestment Act of 2009
The highlights are:
The $1500 tax credit is not a deduction. Deductions are used to calculate your total taxable income. This new tax credit is much more than a deduction because you apply the tax credit directly to the balance due the IRS on your tax return - or increase your refund. Whether your taxable income is $20,000, $75,000 or $1,000,000, you will recieve the full $1500 reduction to your tax payment - or a $1500 increase in the amount of your refund.
Q: How do I learn more about the Energy Improvement & Extension Act of 2008?
A: Visit www.energystar.gov for more information and IRS documents.
State of Michigan Tax Credit
Beginning in 2009, certain Michigan taxpayers are eligible for a tax credit for the purchase and installation of qualifying energy efficient home improvements such as windows and insulation.
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. Income restrictions apply.
For more information go to www.dsireusa.org