Energy credits

[kathyc2]

Has anyone seen something of an authoritative nature that credits for things like furnaces and windows has been reinstated from the recent legislation?

I'm getting ready to compose my annual letter to clients and don't feel comfortable including it solely on my reading of the legislation.

[New York Enrolled Agent]

Has anyone seen something of an authoritative nature that credits for things like furnaces and windows has been reinstated from the recent legislation?

I'm getting ready to compose my annual letter to clients and don't feel comfortable including it solely on my reading of the legislation.

If an item was covered before, then it will be covered now. The only change (other than the technical changes) was the date.

SEC. 123. NONBUSINESS ENERGY PROPERTY.
(a) IN GENERAL.—Section 25C(g)(2) is amended by striking ‘‘December 31, 2017’’ and inserting ‘‘December 31, 2020’’.

(b) TECHNICAL AMENDMENT.—Section 25C(d)(3) is amended— (1) by striking ‘‘an energy factor of at least 2.0’’ in subparagraph (A) and inserting ‘‘a Uniform Energy Factor of at least 2.2’’, and (2) by striking ‘‘an energy factor’’ in subparagraph (D) and inserting ‘‘a Uniform Energy Factor’’.

(c) EFFECTIVE DATE.—The amendments made by this section shall apply to property placed in service after December 31, 2017.

[kathyc2]

That's my understanding also. However, I'm not finding anything from IRS, energystar.gov, taxadvisor, etc. that confirms it. On IRS 5695 page it has "none at this time" under recent developments. https://www.irs.gov/forms-pubs/about-form-5695

I would be mortified if I put something in my annual letter that turns out to not be true. May be I just need to wait another week or so before sending them.

[New York Enrolled Agent]

You asked something of "an authoritative nature".

Can we do better than the law?

[kathyc2]

LOL! You certainly have a point.

[ATSMAN]

I am drafting my annual letter to go out as soon as IRS announces the start date of e-filing. If by then there is no guidance from IRS regarding these retroactive credits, I will just put a small para in my letter that we can discuss this later once we receive guidance. Frankly I would rather deal with 2018 energy credits in the summer after tax season than get bogged down doing amendments during tax season.

[terryats]

not an official source, but Intuit is saying it has been extended: https://turbotax.intuit.com/tax-tips...lify/L5rZH56ex

[ATSMAN]

not an official source, but Intuit is saying it has been extended: https://turbotax.intuit.com/tax-tips...lify/L5rZH56ex

There is no question that it has been extended as NY Enrolled Agent posted the section of the law change. The question is how soon form 5695 is revised?

[kathyc2]

It may be that items purchased in 2018 will be allowed to be claimed on 2019 returns instead of amending. That would make more sense, we just need to wait to see if the powers that be see it that way.

[ATSMAN]

It may be that items purchased in 2018 will be allowed to be claimed on 2019 returns instead of amending. That would make more sense, we just need to wait to see if the powers that be see it that way.

That would make sense assuming you have used up the lifetime max of $500 by 2018 or 2019.

You have a look back period all the way to 2006 I think. I wonder how many people really look back??