Prepared for Curt H. | Delivered July 8, 2020
Energy Tax Credits at Local, State, and Federal Levels
Identify what energy tax credits and rebates are available at the local, state, and federal levels to choose materials and equipment for a new energy-efficient home near Coldwater, MI.
Federal Energy Tax Credits
The Solar Investment Tax Credit (ITC) currently allows homeowners to receive a
26 percent tax credit
for solar systems installed on residential and commercial properties. The tax credit will drop to
for home projects that begin construction in 2021. From
2022 and onward
, homeowners will not receive a federal credit for residential solar energy systems.
Federal Energy Policy Act of 2005
provides tax credits of up to
for homes that are built or manufactured by December 31, 2020. Home builders are eligible for the tax credit if their home "achieves
energy savings for heating and cooling over the 2006 International Energy Conservation Code (IECC)," and at least 20 percent of the energy savings must come from "
building envelope improvements
." Additionally, those who manufacture a new home that complies to "Federal Manufactured Home Construction and Safety Standards" and achieves "
energy savings for heating and cooling over the 2006 IECC and supplements" will receive a $1,000 tax credit.
Energy Efficient Mortgage
program qualifies borrowers for a higher loan amount if homeowners make
cost-effective energy improvements
to their property.
State Energy Tax Credits
The Great Lakes Energy
Residential Energy Efficiency Rebate Program provides residential customers with rebates for purchasing
air-source or geothermal heat pumps
is offered for geothermal heat pumps, while a rebate of $250 is available for air-source heat pumps.
To help homeowners reduce their energy costs, the
Efficiency United program
offers rebates to customers on energy-efficient furnaces, boilers, natural gas water heaters, thermostats, windows, and doors.
energy providers are part of the program.
Energy Optimization program
, 13 utility companies provide "
residential electric incentives
" to homeowners who have implemented energy-saving measures.
The Lean and Green Michigan Property-Assessed Clean Energy (PACE) program allows property owners "to
finance energy improvements
with no upfront costs." A project's cost is repaid through an "
on the property over a period of years."
Local Energy Tax Credit
The Coldwater Board of Public Utilities (CBPU) offers rebates to residential customers who "install
and energy-saving measures." The
are available for Energy Star TV, LED lamps, refrigerators, programmable thermostats, freezers, dishwashers, air conditioners, clothes washer/dryer, dehumidifiers, heat pump water heaters, ceiling fans, and furnace fan ECM motors.
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