Congress has extended the $2,000 tax credit for builders who
build energy efficient homes by a bipartisan vote (89-8 in the Senate and
257-167 in the House). The legislation changed the base of the tax credit from
the 2003 to the 2006 International Energy Conservation Code.
The legislation extends the
credit from January 1, 2012 through December 31, 2013 and retroactively to
January 1, 2012. The credit had previously expired on December 31, 2011. The extension of the energy efficient tax
credit is contained in Section 408 of the legislation. To download the
legislation, click here: American Taxpayer Act.
The legislation also
extended the tax credit for homeowners to purchase qualified products to
improve the energy efficiency of their existing homes. This is a significant achievement considering
the political stalemate that has existed in Washington. It also demonstrates that there
is wide bipartisan policy support for high performance homes.
The HBA is planning a
Builder Forum or an in-house seminar on this topic in the next few weeks. More information will be provided to members
via email.
On
December 27, 2012 the Governor signed House Bill 4134 (now Public Act 494 of
2012) and House Bill 4561 (now Public Act 504 of 2012) into law. The new
laws take effect immediately.
PA 494 removes the 18-mill school tax on new residential construction on
development property for three years or until the new construction was no
longer located on development property, whichever occurs first. The exemption
would apply for taxes levied after November 1, 2012.
"Development property" means real property on which a residential
dwelling, condominium unit, or other residential structure is located, if the
dwelling, unit, or structure meets all
of the following conditions:
1. Is not occupied and has never been occupied.
2. Is available for sale.
3. Is not leased.
4. Is not used for any business or commercial purpose.
"New construction" means property not in existence on the immediately
preceding tax day and not replacement construction. The exemption will apply
for taxes levied after November 1, 2012.
That’s a property tax reduction of
$1,800 for every $100,000 in taxable value on your inventory home or 20 times
the $90 annual dues you pay to the state association.
To claim an exemption under subsection (1), an owner of development property
must file an affidavit claiming the exemption with the local tax collecting
unit on or before June 1 for the immediately succeeding summer tax levy
and all subsequent tax levies or on or before November 1 for the immediately
succeeding winter tax levy and all subsequent tax levies. The Michigan Department of Treasury is currently
designing the affidavit form. HBAM will let you know when
the form is available
Lee Schwartz
Executive Vice President for Government Relations
Home Builders Association of Michigan-HBAM
