SB 1048 is an amendment to PA 281 (Income tax act of 1967). The bill was passed along with SB 213’07 and HB 5524’07, to which it was tie barred.

SB 1048 allows a taxpayer to claim income tax credits when purchasing qualified home improvements for their principal residence. Qualified home improvements are defined as one of the following items which meet both the Environmental Protection Agency’s Energy Star efficiency guidelines and are intended for residential or non-commercial use:

• Insulation
• Furnaces
• Water heaters
• Windows
• Refrigerators
• Clothes washers
• Dishwashers

A single taxpayer with an adjusted gross income equal to or less than $37,500.00 or a married couple filing a joint return with an adjusted gross income equal to or less than $75,000.00 can claim an income tax credit worth 10% of the amount paid by the taxpayer in the tax year for the purchase and installation of qualified home improvements. There is a maximum of $75.00 and $150.00 which can be claimed by a single tax filer and joint filers respectively for a single tax year. Only one credit can be claimed for each category of qualified improvements per tax year. (read more...)

If the credit a taxpayer would receive would amount to greater than their income tax liability for that year, then the portion of the credit which would exceed the liability would be refunded.

This tax credit program is in effect from December 31, 2008 until January 1, 2012.

Read the bill: SB 1048