OT: Appliance, Energy Credit

[geekgirldany]

I put this as off topic.

I've been having ALOT of clients coming in saying they had purchased refridgators, dish washers, and other appliances and that they are eligible the residential energy credit. From my research they do not. When I ask them where they heard this most said they were told this from the place the purchased the appliances from. Maybe they misunderstood... not sure. But they really don't like it when I tell them they can't get the credit.

Has anyone else ran across the above this year?

[Gretel]

There have been some posts on the board. Appliances do not qualify for the credit but each state is allocated some funds and give rebates to consumers. This is not handled on tax returns.

[geekgirldany]

Yes Georgia is doing that. My parents was looking at purchasing a new refrigerator and there was a $50 rebate from the state that had to be mailed in.

[Jesse]

Has anyone else ran across the above this year?

A lot!

Someone even brought in the tag their Menard's dishwasher had on it referring to the credit - basically in flashy letters - 30% off energy saving products up to $1,500 (something like that). I think someone must of took it off a batt of insulation and stuck it on the dishwasher.

And I don't mean to pick on Menard's, after all, they do have the best site to enter the SKU # to see if items qualify. It's inexperienced sales people too.

Kind of like the car sales people pushing the sales tax deduction.

[JON]

Each state was

given stimulus money for the program. Minnesota's started March 1, 2010. It has nothing to do with income tax filings here - it is done by the buyer on their own. They send whatever in and if qualified they get something back. Most states on their websites have disclosed what has to be done.

[gkaiseril]

Here is a database of federal, state, and local programs, http://www.dsireusa.org/ , DSIRE. For looking up the specific state programs. The site also splits out the 'renewable energy' and 'energy efficiency' programs. You will have to follow the links to find the details of the benefit. These can be in the form of a cost rebate at the point of sale to the federal tax credit, rebate paid when old appliance picked up, applying to special agencies, etc. You have to read and follow the rules.

[BP.]

Yes, tons of people, and it is starting to drive me nuts! They happily wave their receipts, they swear there's a washer/dryer/refrigerator/dishwasher credit for their tax return, they give me a look of disbelief me when I say no, because, hey, their salesperson told them their appliances qualify, they call me to double check, they say "But it is Energy Star!!" Uggh!!!

[Burke]

My state has allowed the sales tax deduction for these items for the last 2 years on their return. So it's on my questionnaire.

[Cheryl48]

Michigan

Michigan has a small energy credit for refrigerators, washing machines and dishwashers AGI to qualify is rather small.

[geekgirldany]

they say "But it is Energy Star!!" Uggh!!!

I know what you mean. I actually have a bookmark to the energystar website to show them the Federal credits. It clearly shows what is allowed and what is not. And with 25" monitors they can see it pretty good.

http://www.energystar.gov/index.cfm?c=tax_credits.tx_index

[BP.]

with 25" monitors they can see it pretty good.

Nice! And the print's pretty large on that website, too!

[JON]

Remember

this is new money supplied by the federal government, because of their surpluses?, which is supposed to be used by the states for appliance energy credit- or maybe it will be used for trips by elected officials, anyway I would hope if states had old plans they have enhanced it by the federal money received. If they have not used it then get some legislation where they will pay out an extra $1,000 per income tax return prepared by you. It needs to be used someplace - why not you.