MPSC: Federal Tax Credits of Up to $500 are Available for Energy Efficiency Improvements

Contact: Judy Palnau (517) 241-3323

January 9, 2007 

Michigan Public Service Commission (MPSC) Chairman J. Peter Lark today noted that federal tax credits of up to $500 are available for home energy efficiency improvements made in 2007.

"Energy efficiency improvements lower energy bills immediately - and well into the future," Lark said. "My fellow Commissioners and I encourage home owners to investigate which improvements would reap big savings and to make those changes before the end of 2007, when the tax credits end."

Lark noted that the tax credit is available to customers who purchase and install energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in their principal residence in the United States. Credits vary according to the improvement made.

Specific tax benefits for the home include:

• $50 for purchasing an advanced main air circulating fan;
• $150 for installing a highly efficient furnace or boiler;
• Up to $200 for installing energy efficient windows; and
• $300 for purchasing a highly efficient central air conditioner, heat pump, or water heater.

The tax credits are the result of the Energy Policy Act of 2005. In addition to these tax credits for home energy efficiency improvements, this law provides tax credits for businesses and commercial buildings.

The tax credits became available in 2006 and will continue until the end of 2007. Customers will be able to itemize purchases made on their federal income tax form.

For more details on the tax credits available, visit the U.S. Department of Energy Web site at energy.gov.

The MPSC is an agency within the Department of Labor & Economic Growth.