[RE-wrenches] again, tax credits

[Howie Michaelson]

OK,

So at the risk of beating a dead horse...

The previous thread on tax credits and incentives stated that if a
taxpayer's marginal tax rate is lower than 30% they would do better to
claim the incentive-reduced cost of the system for calculating the ITC,
and thereby not pay tax on the incentive money.  If their rate is above
30% then do the opposite.  This confused me, because my thinking, that
seemed backward.  Now this Berkeley Lab study

http://eetd.lbl.gov/ea/emp/cases/res-itc-report.pdf

that was referenced in a Renewable Energy World article noted in the
Marketing thread, seems to clearly state what I was thinking.

Am I just being thick or missing something, or is it correct that if one's
marginal rate is less than 30%, take the ITC on the whole system cost and
pay tax on the incentive money?

Thanks,
Howie
-- 
Howie Michaelson
NABCEP Certified Solar PV Installer™

Sun Catcher, LLC
Renewable Energy Systems Sales and Service
VT Solar & Wind Incentive Program Partner
http://www.SunCatcherVT.com
(cell) 802-272-0004
(home) 802-439-6096