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Residential Energy Credits. The credit for home improvements that reduce heating and cooling costs, and for improvements that change the type of energy that is used to renewable energy, such as insulation, windows, energy-efficient furnace and water heaters, etc. that expired December 31, 2007 has been reinstated for property placed in service after December 31, 2008 and before January 1, 2010.
For 2009, 2010, and 2011 the State of Michigan is also offering credits for energy efficient home improvements. To be eligible for the credit, your income cannot exceed $75,000 for joint filers or $37,500 for single filers.
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