[RE-wrenches] FW: : Renewable Energy Production Tax Credits andInvestment Tax Credits Extended

[Paul Israel]

File was rejected  ... because I added the SEIA Tax guide.   Contact me or
go to seia.org if you want the tax guide. 

 

 

 

 

Paul N. Israel, President

paul at sunlightsolar.com

www.sunlightsolar.com <http://www.sunlightsolar.com/> 

541/389-3480 (Oregon)

203/878-9123 x103 (CT)

860/617-6527 (Cell)

  _____  

From: Paul Israel [mailto:paul at sunlightsolar.com] 
Sent: Friday, October 03, 2008 9:20 PM
To: 'RE-wrenches'
Subject: RE: [RE-wrenches] : Renewable Energy Production Tax Credits
andInvestment Tax Credits Extended

 

Kirpal,

 

Q.  Anyone know if the tax credit is able to be carried forward if not able
to consumed entirely in one year? 

 

On the Commercial side here is the SEIA Tax Manual "bible" passage.

 

7.2 Carryback and Carryforward of Credits

A commercial solar tax credit that a taxpayer cannot use because of the
floor can be

carried back one year and forward 20 years. However, it appears that only
10% of the

30% solar credit can be carried back before 2006. The remaining 20% of solar
credits

arising in 2006 cannot be carried back. If a taxpayer ends up carrying
unused energy

credits forward for 20 years and is still unable to use them, the unused
credit can be

exercised in the year after the carryforward period ends. However, only half
the credit

can be used in this situation - the rest is lost.

 

 

The Residential is "amorphous" at best.   Probably best to use it in the
year earned.

 

6. Project Timing Issues, Transition Issues, Progress Expenditures

Unlike the commercial solar tax credit, the residential credit is a new
credit beginning in

2006. The residential credit rewards spending on solar equipment for the
home during

2006 and 2007. The full tax credit basis for the residential credit becomes
eligible in the

year that installation of the equipment is completed; there is no provision
for credits

against progress payments, as described in Section 5.2 of the commercial
credit

section. Thus, it is important for the installation to be completed by
December 2007.

Since individuals tend to use cash accounting for payment of taxes, it would
be a good

idea for an individual to also have paid for the equipment by December 2007.

 

 

 

 

Paul N. Israel, President

paul at sunlightsolar.com

www.sunlightsolar.com <http://www.sunlightsolar.com/> 

541/389-3480 (Oregon)

203/878-9123 x103 (CT)

860/617-6527 (Cell)

  _____  

From: re-wrenches-bounces at lists.re-wrenches.org
[mailto:re-wrenches-bounces at lists.re-wrenches.org] On Behalf Of Kirpal
Khalsa
Sent: Friday, October 03, 2008 6:40 PM
To: RE-wrenches
Subject: Re: [RE-wrenches] : Renewable Energy Production Tax Credits
andInvestment Tax Credits Extended

 

Big relief to have that bill pass......
Anyone know if the tax credit is able to be carried forward if not able to
consumed entirely in one year?
Thanks!!!
Cheers,



-- 
Sunny Regards,
Kirpal Khalsa
NABCEP Certified Solar PV Installer
Renewable Energy Systems

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