Tax Incentives May Help Reduce the Cost of Installing Energy Efficient Equipment

You may be aware of our residential and business energy efficiency incentives, but less familiar with state and federal tax incentives. That’s why we took a few minutes to give you a list of helpful links and information that can help you save even more money on installing energy efficiency measures.

Federal Tax Credits for Energy Efficiency

The federal government offers many tax credits on energy efficiency products for 2011 which include:

  • Biomass stoves
  • Heating, ventilating and air conditioning (HVAC)
  • Insulation
  • Roofs (metal and asphalt)
  • Water Heaters (non-solar)
  • Windows and doors
  • Geothermal Heat Pumps
  • Small Wind Turbines (Residential)
  • Solar Energy Systems
  • Fuel Cells (Residential Fuel Cell and Microturbine System)

Michigan Tax Incentives for Renewables and Efficiency

There are several Michigan tax incentives available to homes and businesses.

Building Tips and Tax Credits that Save Energy for Homes and Businesses

ENERGY STAR® is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy helping homeowners and businesses all save money and protect the environment through energy-efficient products and practices.

Home Construction

The U.S. Environmental Protection Agency has set guidelines for energy efficiency. Homes that meet these ENERGY STAR guidelines are at least 15 percent more energy-efficient than homes built to the 2004 International Residential Code. They include additional energy-saving features that typically make them 20 percent to 30 percent more efficient than standard homes.

ENERGY STAR qualified homes use less energy for heating, cooling, and water heating — delivering $200 to $400 in annual savings. Over the average seven to eight years you may live in your home, this adds up to thousands of dollars saved on utility bills. Visit the ENERGY STAR® website to learn more!

Helpful Links:

Business Construction

New Construction Program: If a new facility or a major renovation of an existing facility is part of your business plan, look into the New Construction Program offered by Consumers Energy. You’ll see it pays to plan on efficiency.

Tax deductions for commercial Buildings: A tax deduction of up to $1.80 per square foot is available to owners or designers of new or existing commercial buildings that save at least 50 percent of the heating and cooling energy of a building that meets ASHRAE Standard 90.1-2001. Partial deductions of up to $.60 per square foot can be taken for measures affecting any one of three building systems: the building envelope, lighting, or heating and cooling systems. These tax deductions are available for systems “placed in service” from Jan. 1, 2006 through Dec. 31, 2013.