Enegry Credits

[Donanita]

Client called wanting to lower tax liability for next year and was asking about the tax energy credits.Plans on installing solar panels,solar water heater,windows, and anything energy related.They also ask about the credit on cars and ask if the credit on the home would limit the auto credit. In reading Lasser's I couldn't find any info about one credit limited the other but the auto credit would be phased out once the manufactruer sells 60,000 of the qualifing autos afater 2005.How would a taxpayer that purchased a auto now intending on getting the credit know if the 60,0000 sells would not be exceed by the end of the year.Also does one credit limit the other.

[Scientist]

yes, CAP is $500 in the year of 2006.

[Donanita]

$500 total

on the home energy credit and the auto credit or just the home energy credit

[Black Bart]

IRS has a notice out on it.

Try this thread. If it doesn't take you there, then go to Google and type it in. It worked for me there--Yahoo did not.

I couldn't find anything about cars, but the way I read it is that it's $500 total for everything except solar panels for which you can get $2,000. Also, no more than $200 can be from windows (which is bad, because that's usually what people put up most).

https://www.irs.gov/newsroom/article/0,,id=154657,00.html

[Black Bart]

Government Unfair!

Just read the fine print in the afore-mentioned thead and it's mighty upsettin'. It states, and I quote, "Taxpayers are allowed...equivalent credit for investing in a solar water heating system. No part of either system can be used to heat a pool or hot tub."

I mean, shoot, why else would I be installin' the dang thing? I'm writin' my congressman!

[Donanita]

Yes

that is one of the articles that I read.Not much tax savings.Also how is a person to know when the mfg.sales 60,000 qualifing auto.

[Black Bart]

Credits

No, there isn't all that much credit (on the home stuff) for the amount of publicity it generated.

One credit limiting another? I can't find anything at all on that.

You probably already know, but on the 60K cars limitation, I just read that the phase-out begins when the automaker sells 60,000 and continues on for 15 months thereafter instead of ending with 60K. As far as how you would know if your car qualifies, I'm just guessing, but I think probably the car dealers will furnish some sort of certification that the car is or is not eligible for the credit, since they know that's the main reason people are buying them.