A new bill introduced in Augusta looks to make permanent in Maine law a version of the federal energy-efficient home improvement tax credit that lapsed at the end of last year.
LD 2140, sponsored by Sen. Denise Tepler (D-Sagadahoc), would allow Mainers to claim up to several hundred dollars in refundable tax credits for making certain qualified upgrades to their homes.
Refundable tax credits are able to be claimed regardless of whether or not taxes are owed, as opposed to nonrefundable credits which can only be used to reduce the total amount of taxes owed.
For example, a maximum credit of $150 would be available to those who have had a home energy audit.
Replacement doors or windows that meet or exceed specified energy efficiency standards would qualify Maine taxpayers for a refundable credit of $250 per door, up to $500, and as much as $600 in total for windows and skylights.
A maximum of $1,200 would be available for the use of insulation and air-sealing materials that meet or exceed International Energy Conservation Code standards.
All of these credits would be graduated based on a given taxpayer’s income, with phaseout thresholds starting at $100,000 for individual filers. For heads of household, the value of the credit would begin to taper off at $125,000, a metric that would increase to $150,000 for joint filers.
For every $500 earned over the applicable threshold, the value of the relevant credit would be reduced by $20 until it is phased-out completely.
Earlier this month, LD 2140 was referred to the Taxation Committee. It is currently scheduled to be the subject of a work session on Tuesday, January 27 for the purpose of discussing the possibility of re-referring the legislation.
Committee members are expected to vote during that work session on whether or not to re-refer the bill to the Energy, Utilities and Technology (EUT) Committee.
A public hearing will be scheduled before the appropriate committee at a later date.
