Did I miss something?

[Art]

Got a call from a client who installed a geo-thermal system ($18000) in his new home in 2006. He claims that he is entitled to the 30 % $2000 credit. As I read the law this is effective starting in 2009 for systems installed in 2009. I did not find anything about a retroactive provision that would allow a credit. Can someone help me out here?

[Snaggletooth]

2006 is the year

If he installed this in 2006, the relevant question would be: Was this credit viable in 2006? If so, he should have claimed it in that year. Consider an amended return.

[BOB W]

Got a call from a client who installed a geo-thermal system ($18000) in his new home in 2006. He claims that he is entitled to the 30 % $2000 credit. As I read the law this is effective starting in 2009 for systems installed in 2009. I did not find anything about a retroactive provision that would allow a credit. Can someone help me out here?

2006 Only talks about solar issues> no geothermal. 2007 TTB DELUX 11-11

[Gretel]

Got a call from a client who installed a geo-thermal system ($18000) in his new home in 2006. He claims that he is entitled to the 30 % $2000 credit. As I read the law this is effective starting in 2009 for systems installed in 2009. I did not find anything about a retroactive provision that would allow a credit. Can someone help me out here?

In case 2006 is a typo, the geothermal credit is available for 2008 on line 18 form 5695.

[Art]

My bad, I forgot to say that we did claim the credit in 2006, but it was limited to max of $ 500. Now client is saying he is entitled to the balance of $2000, less the $ 500 we claimed in 2006. I could not find anything to support taking the $ 1500.

[Gretel]

Your client might confuse carry-forward rules. If he received the full credit in 2006 then he is out of luck.

[New York Enrolled Agent]

My bad, I forgot to say that we did claim the credit in 2006, but it was limited to max of $ 500. Now client is saying he is entitled to the balance of $2000, less the $ 500 we claimed in 2006. I could not find anything to support taking the $ 1500.

I THINK it goes something like this:

In 2006, the credit existed for geothermal heat pumps with a maximum of $500 on the energy credit.

In 2008, geothermal heat pump property expenditures upto a limit of $6,667 are allowed with a credit of 30% of the cost ( $2,000 maximum)

In 2009, geothermal heat pump expenditures are allowed without limit with a 30% credit of the cost.

I think your taxpayer may be confusing some of these issues (at least that's what I THINK).

[BOB W]

2006 Only talks about solar issues> no geothermal. 2007 TTB DELUXE 11-11

I just review TTB Deluxe for '06 and the only mention of geothermal is in "Heat Pumps" and it was limited to $300.

[Art]

Thanks for all the quick replies. Sometimes, especially after a long tax season, the brain is just plain tired and it makes you second guess yourself on lots of things. I don't about you, but this whole energy credit thing over the last several years, and especially, 2008 has been a real mess. Thanks again for your posts.