Section 206.253 - Tax years beginning after December 31, 2008 and before January 1, 2012; tax credit; purchase and installation of qualified home improvement; definitions. - Michigan Statutes

INCOME TAX ACT OF 1967 (EXCERPT)
Act 281 of 1967

206.253 Tax years beginning after December 31, 2008 and before January 1, 2012; tax credit; purchase and installation of qualified home improvement; definitions.

Sec. 253.

(1) Except as otherwise provided under this subsection, for tax years that begin after December 31, 2008 and before January 1, 2012, a taxpayer with adjusted gross income equal to or less than $37,500.00 or for a husband and wife filing a joint return as provided in section 311 with adjusted gross income equal to or less than $75,000.00 who purchases and installs a qualified home improvement for his or her principal residence during the tax year may claim a credit against the tax imposed by this act equal to 10% of the amount paid by the taxpayer in the tax year for the purchase and installation of each qualified home improvement or $75.00, or for a husband and wife filing a joint return, $150.00, whichever is less, for each qualified home improvement purchased and installed during the tax year. However, a taxpayer shall not claim more than 1 credit under each subparagraph of subsection (3)(c) during the same tax year. To claim the credit allowed under this subsection, the taxpayer shall, in the manner required by the department, provide verification of the amount paid for the purchase and installation of the qualified home improvement along with documentation of its compliance with the energy star energy efficiency guidelines. If the credit allowed under this subsection exceeds the tax liability of the taxpayer for the tax year, that portion of the credit that exceeds the tax liability shall be refunded.

(2) For tax years that begin after December 31, 2008 and before December 31, 2012, a taxpayer with adjusted gross income equal to or less than $65,000.00 or for a husband and wife filing a joint return as provided in section 311 equal to or less than $130,000.00 may claim a credit against the tax imposed by this act equal to the percentages provided by this subsection of the amount authorized for the customer's electric utility under section 45(2)(a) of the clean, renewable, and efficient energy act and paid during the tax year. If the credit allowed under this subsection exceeds the tax liability of the taxpayer for the tax year, that portion of the credit that exceeds the tax liability shall not be refunded. The percentages of the amounts authorized shall be as follows:

(a) For tax years that begin after December 31, 2008 and before January 1, 2010, 25%.

(b) For tax years that begin after December 31, 2009 and before January 1, 2012, 20%.

(3) As used in this section:

(a) "Electric utility" means that term as defined under section 10g of 1939 PA 3, MCL 460.10g and includes an alternative electric supplier as that term is defined under section 10g of 1939 PA 3, MCL 460.10g.

(b) "Principal residence" means that term as defined in section 7dd of the general property tax act, 1893 PA 206, MCL 211.7dd, and exempt from taxation under section 7cc of the general property tax act, 1893 PA 206, MCL 211.7cc.

(c) "Qualified home improvement" means the following items intended for residential or noncommercial use that meet or exceed the applicable energy star energy efficiency guidelines developed by the United States environmental protection agency and the United States department of energy:

(i) Insulation.

(ii) Furnaces.

(iii) Water heaters.

(iv) Windows.

(v) Refrigerators, clothes washers, and dishwashers.

History: Add. 2008, Act 287, Imd. Eff. Oct. 6, 2008