Energy Star Appliance

[Questionguy101]

I have a client who purchased an energy star dishwasher and a range last year. He insisted that he should be able to get a tax credit for each of them because the sales person told him so. But I have read the instruction of Form 5695 and I did not see dishwasher and range qualify for the Residential Energy Credit. Am I missing something or they are talking about another type of tax credit?

[Larmil]

I have a client who purchased an energy star dishwasher and a range last year. He insisted that he should be able to get a tax credit for each of them because the sales person told him so. But I have read the instruction of Form 5695 and I did not see dishwasher and range qualify for the Residential Energy Credit. Am I missing something or they are talking about another type of tax credit?

Possibly a state credit?

[Kram BergGold]

No IRS credit

Kitchen appliances don't get a federal tax credit.

[Questionguy101]

Kitchen appliances don't get a federal tax credit.

Thank you. That's my conclusion after I read the instruction for Form 5695 too.

And I have just researched on the California credits and I do not see special credit for energy star appliance either. Do we have other California tax professionals here who hold a different opinion?

[dyne]

There is a STATE instant rebate for many or all states for certain appliances such as
dishwashers, etc. but NOT a federal tax credit. See:
[url]www.energysavers.gov/financial/rebates/state_sc.cfm
inserting the initials for the state before the .cfm.
In SC the rebates start in March 2010 and last until the funds run out.

[taxmom34]

state credit

it will be a state issued rebate. Mass has not formally defined how they are going to pay this out. I believe the fed gave the states the money as part of stimulus and they in return pass out the cash.

[taxea]

latest news from IRS

This was in today's newsletter from NATP

Energy Star Rebates Excluded From Income
The IRS has stated in an internal advice memo that Energy Star appliance rebates are reductions in the purchase price of the energy-saving products and are not to be included in taxable income. Thus, consumers must reduce the adjusted basis of property by the rebate amount and can't treat the rebate as an expenditure when determining any tax deductions or credits.

[Burke]

I have already applied for mine, it has been approved, and the funds are waiting for me to make the purchase.

[taxea]

Burke is that federal or state...state does have a credit...this information is for federal

[Burke]

It is the state rebate program which was discussed above. It has nothing to do with the tax return. Monies are paid directly from state funds received under the Economic Stimulus legislation. It was in effect last year as well. My state also allows a credit for the sales tax on such appliances, but there is no federal tax credit for them.