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$1500.00 rebate/tax credit

John Starcher_4
John Starcher_4 Member Posts: 794
in THE MAIN WALL
...that the tax credit applied to the total cost of qualified equipment installation, including labor. This morning on the radio, I heard someone say that it applies to the "cost of the materials."

Does anyone know which is right????

Comments

  • JK_3
    JK_3 Member Posts: 240
    help with rebate/tax credit

    I am trying to sell the cust on a high eff. mod/con boiler and do not really understand the tax credit/ rebates available. Does the cust actually get $1500 off of their tax amount due or is the tax amount due based on $1500 less taxable income. how could i best inform the cust of the facts?

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  • joel_19
    joel_19 Member Posts: 931
    credit

    This is a credit not a deduction. so if they where paying say 10,000 in taxes they would subtract 1,500 from that amount. as always check with thier lawyer,accountant,financial advisor and read the prospectus befoe you invest. Prior performance is no guarantee...
  • Darin Cook_9
    Darin Cook_9 Member Posts: 45
    Tax Credit

    For qualifying heating and water heating equipment it is 30% of the installation cost up to $1500.00. It is a tax credit which means for every dollar of tax burden you have, one dollar comes off of that total. So if you can take a Federal tax credit in conjunction with a Utility Rebate you could be saving thousands of dollars off the cost of an install. Translated - there is no better time than now to go with a high efficiency installation.

    Darin
  • Bob Bona_4
    Bob Bona_4 Member Posts: 2,083
    so true

    Darin, today's install was a Fujitsu 12RLS 21 SEER heat pump. 99% for cooling in this app, the 21 SEER gets it in the right bracket for incentives. They are bringing in 25 SEER (!!) this year BTW.

    $1500 tax credit, and a $500 direct rebate from CT's CL+P.

    Sweet.
  • John Starcher_4
    John Starcher_4 Member Posts: 794
    Hi Darin,

    I understand that, but am I correct in assuming that the credit applies to the TOTAL INSTALLED COST (which includes labor)? Or does it only apply to the EQUIPMENT COST (excluding labor)???
  • JK_3
    JK_3 Member Posts: 240


    Thank you for the info.That helps.And the little disclaimer :) .

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  • Darin Cook_9
    Darin Cook_9 Member Posts: 45
    Tax Credits

    The credits are calculated against the "total" installation including labor. Feel free to check it out on www.energystar.gov

    Darin
  • Craig R Bergman
    Craig R Bergman Member Posts: 100
    As with

    any government program the rules can change without advanced notice. We tell our clients they "May" qualify for the 30% tax credit and they should consult their accountant for more detailed information.

    Bergy
  • John Starcher_4
    John Starcher_4 Member Posts: 794
    Thanks, D!! (nm)



  • John Starcher_4
    John Starcher_4 Member Posts: 794
    Exactly!!!!

    I have been tempering my explanation of the tax credits to my clients with a similar disclaimer!!!!
  • Darin Cook_9
    Darin Cook_9 Member Posts: 45
    Tax Credits

    I would agree wholeheartedly with you guys. Never, Ever - Promise anything that you have no control over. You could find yourself in a awkward legal position!!

    Darin
  • Unknown
    Unknown
    Tax credit

    Not only is the tax credit applied towards the tax liability but if no taxes are due the credit is refundable, this is important because some types of tax credits are not
  • JK_3
    JK_3 Member Posts: 240
    input

    Thank you all for your input. I found what I need for the Federal rebate ($1500) and ($800)from Natinal Grid and I am including the info with my proposal packet. In the proposal it self I made notes that (This may qualify for rebates/ credits.Information included.Consult your tax advisor.)

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  • John Barba
    John Barba Member Posts: 166
    May be old news...

    ...but check out this website:

    www.dsireusa.org

    Lists incentives, loan programs, deductions and grants for energy efficiency improvements for every state and utlity in the US, and has a decent explanation of the federal programs as well. Interesting to see no-interest loans being made available in Mass...

    JMB
  • Jim Pompetti
    Jim Pompetti Member Posts: 552
    To make sure

    Go to www. ARI RATINGS .Find the correct unit and model # and print the page ,give it to your customer . Then they will have the info they need for the tax man and it also gives you the information IF your product meets all quantification for the rebate ,

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  • scott markle_2
    scott markle_2 Member Posts: 611


    Tony,

    Does this mean that a person with no tax liability would receive the $1500 back even if they had payed nothing in?

  • Unknown
    Unknown
    Yes

    it does, but if you didnt pay any taxes you might have a hard time explaining where you got the money to buy the system. lol
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