New federal program for tax credits as of Feb. 20th.
http://www.energystar.gov/index.cfm?c=products.pr_tax_credits
Some are pretty enticing like the one for a 30% credit on ground-source systems with no cost cap!
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Replies
Maybe that will give the GSHP industry a bit of a shot in the arm. I can think of worse ways for the gov't to spend money ... like subsidizing oil with military funding (not to mention all the other tax benefits the oil companies enjoy).
Thanks for the tip - I've been waiting for this.
Unfortunately, the plain Jane stuff (windows & doors) are still on the tough side. Getting windows with U<=0.30 requires triple pane, at least through Pella.
I haven't figured out the price difference yet between an 95% AFUE (covered) and 90% AFUE (not covered, even though it's Energy Star rated) gas furnace, but if it's less than $1500, I suspect you'll see the 90% models disappear.
The solar credit is pretty cool - although I'm guessing the program runs out of money before 2016.
Who's selling plug-in hybrid electric cars that qualify for the 2500 - 7500 rebate?
-t
FYI Heat Mirror offers lots of glass products well under 0.30 U-value. Heat mirror is used in a couple of window products, still, I think. Heat Mirror IMO is a very good product. May be hard to find ... depending on location and proximity to the nearest mfg (it takes special equipment to make it and there aren't many locations for mfg it in the country).
Who's selling plug-in hybrid electric cars that qualify for the 2500 - 7500 rebate?
The "Tesla Automobile Company" (may not have the name quite right--Maybe it's "Tesla Motors") has not a hybrid, but a totally electric, plug-in, rechargeable battery-powered car that goes 0-60 in something like four seconds. It is pretty expensive though. I think Amory Lovins (sorry about spelling) is also working on an electric car that is made moslty of carbon fiber.
Who's selling plug-in hybrid electric cars that qualify for the 2500 - 7500 rebate?
Here is one that is being billed at selling for HALF the cost of current electrics.... Range: 25 miles for this model, but it's designed for local town and neighbor drives...seats are dang near patio chairs...;>)
They say a longer distance model is coming.
http://wheels.blogs.nytimes.com/2009/02/12/peapod-mobility-arrives-on-earth-day/
Bill
Holy cow, that's an ugly vacuum cleaner... Of course, what would you expect when Grandpa's motor company gets taken over by the guy that accelerated Home Depot's (well deserved) nosedive into the ground (Bob "FO SHAREHOLDERS! Oh, by the way, I need 20 billion from the Gov" Nardelli)...It seems to me that some people go out of their way to make things far too complicated. Air flow and resistance modelling has been seriously applied to cars for over 30 years. Why would you radically alter that because you've changed the motor train? Anyways, getting back to tax credits: Thanks to the folks that pointed out the difference in the tax credit deductibility. I've never had a major credit (at most 100 bucks here or there) relative to my tax burden, so it's never come up.On the bright side, I have a major remodeling project of my home for this Spring that we're finishing the nitty-gritty of the planning/scope agreement. Part of the project involves a furnace replacement. Even after figuring out the amount of the credit I'll use up on new exterior wall insulation (~$2500 material expense, which generates a $750 credit), I'll have about half of the credit left. That half is enough to allow me to upgrade from the 90% AFUE model we originally specified (which doesn't qualify for the credit, even though it's energy star rated) to the corresponding 95% AFUE model (which does qualify). I can get the more efficient model, it doesn't cost a nickel more to install, and after the credit I'll end up coming out $50 ahead... how sweet is that?Thanks Uncle Obama. -t
Thanks for the link
"Ask not what the world needs. Ask what makes you come alive... then go do it. Because what the world needs is people who have come alive."
Howard Thurman
Can anybody explain to this dummie how this tax credit works?Let's say I get a $15,000 bid for GSHP for my house. I say go.
I pay the HVAC contractor $15,000. Then at tax time I file the paperwork and they refund me $4,500? Is that right?
Pretty much. 30% of cost. This comes on the "credit" side of your taxes. Let's say your Fed withholding was $10,000 last year, and your final tax owed is $9000. Then you add the $4500 credit (now you're at $14500), subtract the tax owed, and the feds send you $5500.Here's the language:Qualified geothermal heat pump property costs are
costs for qualified geothermal heat pump property
installed on or in connection with your home located in
the United States. Qualified geothermal heat pump
property is any equipment that uses the ground or
ground water as a thermal energy source to heat your
home or as a thermal energy sink to cool your home.
To qualifiy for the credit, the geothermal heat pump
property must meet the requirements of the Energy
Star program that are in effect at the time of purchase.
The home does not have to be your main home.
In 2008, the credit is definitely a NON-REFUNDABLE credit. Its is only good up to the extent of your tax liability.
The EARNED INCOME CREDIT is the most widely known refundable credit. In essence, refundable credits are treated as if they are tax payments or additional withholding by you (and are even located in the payments section.) As you might know your withholding is subtracted from your tax due and you either have a refund due or a balance due.
The energy credits have up this time been on the taxes section which can only go to ZERO and not below.
Hope this helps
That means, people like me that have low taxes paid are not helped at all?
I don't qualify for anything, too much assets.
If you have a low tax liability, then yes you wouldn't get the full benefit of the credit if it exceeds your tax liability....unless they allow you to carry the disallowed portion forward over a period of years. Again, you really need to look at the actual IRS rules on this specific credit. Nothing with taxes is cut and dried.
I have, If they would roll it forward 10 years, I might use it up!
This is the reason, I will not be buying any solar, until the market price becomes reasonable.
Uh ... ?? Your math is confusing me. If I owe Sam $9K in taxes and have a $4.5K credit ... I will pay Sam the 9K minus the 4.5K ... or the balance being 4.5K that I would pay Sam.
If I owed Sam $6K in taxes and I had a $4.5K credit ... I would pay the $1.5K balance.
I read your post to say if I had a $9K burden and a $4.5K tax credit, that Sam would refund me $5.5 K .... While I like your result, I think the math is flawed ... or did I miss something?
The language quote you provide offers little to clarify how the credit works ... only what system would qualify to get the credit.
Edited 3/5/2009 8:25 am ET by Clewless1
Edited 3/5/2009 8:26 am ET by Clewless1
his math is fine.
He said you had $10,000 in WITHHOLDING and a $9,000 Tax liability. A $4500 credit would net you a $5500 refund.
$9,000 - $4500 = $4,500 owed in tax - 10000 withheld - $5,500 refund
Where he is wrong is where he describes it as being additional taxes withheld. The math works out in this case but as I said earlier, this is not one of the credits that are treated as additional taxes withheld. It is a credit that is treated as fewer taxes owed. The difference being that credits that are treated like additional withholding are refundable. credits that are treated like fewer taxes owed serve only to lower your tax owed to $0 and no further.
I knew I was missing something there ... just didn't read it like I should have. This can be a tough communication to follow (i.e. on line/text), sometimes ... 'specially for us old(er) posters.
Lets back up one second though. You need to determine if it is a refundable credit or a non refundable credit. Most of these in the past have been non refundable credits which means you can get the credit only up to the amount of your tax liability.
In your example, if your tax liability was only $2000 then if it is a non refundable credit you will only get $2000 not $4500.
I'll see if I can find out
Sometimes unused credits can carryover to following years. I think I've seen things in the past like that.
Would you rather:
Pay $11,500 for the system now...
or $15,000 for the system now and a credit later?
The contractor is raising the bid 30% as I type this. Every tax payer just gave him a raise.A La Carte Government funding... the real democracy.
I am sure you are right and contractors will be getting a raise on the backs of the taxpayers because they WILL raise prices knowing the consumer is going to do the math and net the cost down. They may not raise prices by 30% but I wouldn't doubt they dump in 10% or more.
Good way to support the efficiency community. just hope a bunch of crappy flyby night installers don't start showing up and give the efficiency stuff a bad name.
jt8
lotsa worse things happen to better people than me every day. --Snort
>>just hope a bunch of crappy flyby night installers
Trying to screw up my new business plan? <G>
"Ask not what the world needs. Ask what makes you come alive... then go do it. Because what the world needs is people who have come alive."
Howard Thurman
No one ever takes advantage of Guv'mint subsidies with sub-standard work.
Don't you know nuthin' 'bout health care... uh, I mean construction?A La Carte Government funding... the real democracy.