Residentail Energy Credits

[Cindy]

Page 11-11 in the tax book states that the nonbusiness energy property credit is available for improvements placed in service in 2006, 2007 and 2008. In reading the Economic Stabilization Act of 2008, and in researching this, it appears that the credit is NOT available for 2008 but will be for 2009. I am not finding a correction or update for this page. I had thought the credit was exteneded through 2008 but can't find it anywhere but the tax book. Has anyone else run into this? Thanks! Cindy

[Gene V]

Cindy,
I get the Book and CD--on the CD it was corrected, haven't look at the correction for
The Tax Book, its probably in the update section,

Nonbusiness Energy Property Credit
Individuals can claim a credit for improvements to taxpayer’s
principal residence located in the U.S. Credit is available for improvements
placed in service in 2006, 2007, and 2009. The credit
is the total of:

[Cindy]

Thanks Gene--I didn't see it in the updates but may have missed it. Since I told some clients the credit was extended for 2008, just want to make sure it wasn't before I contact them to let them know I was wrong. --Cindy

[Bees Knees]

This update posted on 10/10/2008

http://www.thetaxbook.com/updates/thetaxauthority_update_service/pdf/bulletin/10-10-2008_update.pdf

says on page 2:

• The nonbusiness energy property credit expired for improvements placed in service after 2007. It has been extended for improvements placed in service during 2009 (but not during 2008). (Page 11-11)

[Cindy]

Not to be argumentative, but why did it state in the book that they were good for 2008?? Was it assumed that they would be extended for 08? --Cindy

[Bees Knees]

The 2008 on page 11-11 was a mistake. Page 1-7 in the book has it correct.

[Bees Knees]

BTW, don't put too much thought into this one. It will be extended for 2008. I guarantee that it will. So I would suggest holding off filing returns for people who have made these improvements for as long as possible. The minute you file and not take the credit, Congress is going to pass a technical correction bill to extend it for 2008 as well. There is no logical reason for them not to, especially since every other energy credit was extended for 2008.

[Cindy]

Thanks so much for your input.--Cindy