[RE-wrenches] FW: : Renewable Energy Production Tax Credits andInvestment Tax Credits Extended
Paul Israel
paul at sunlightsolar.com
Sat Oct 4 09:32:50 PDT 2008
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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