[RE-wrenches] more on tax credits

[Peter Parrish]

Here is it guys...one may do it either way. 

"Rebate First": subtract the rebate first, take the 30% ITC on the
difference
"ITC First": take the 30% ITC on the full purchase price, subtract the
rebate, treat the rebate as ordinary income and pay fed and state tax on it.

Which is better? If your client's marginal tax rate is less than 30% he/she
should consider "Rebate First", if greater than 30%, "ITC First". Period

- Peter

Peter T. Parrish, President
California Solar Engineering, Inc.
820 Cynthia Ave., Los Angeles, CA 90065
Ph 323-258-8883, Mobile 323-839-6108, Fax 323-258-8885
CA Lic. 854779, NABCEP Cert. 031806-26
peter.parrish at calsolareng.com 


-----Original Message-----
From: re-wrenches-bounces at lists.re-wrenches.org
[mailto:re-wrenches-bounces at lists.re-wrenches.org] On Behalf Of Nicholas
Ponzio
Sent: Monday, January 05, 2009 12:30 PM
To: RE-wrenches
Subject: [RE-wrenches] more on tax credits

Wrenches,

I have been operating under the assumption that federal tax credits are 
computed based on net cost AFTER any state reductions. I recently got a 
newsletter from a solar distributor stating that the 30% ITC is now 
calculated based on the  TOTAL system cost  including state incentive. 
Is this accurate? I can't find the reference on the SEIA website to 
confirm this.

Thanks in advance for any feedback.
-nik ponzio

-- 


Nicholas Ponzio
Building Energy
1570 South Brownell Road
Williston, VT 05495

t: 802-859-3384 x15
f: 802-658-3982
www.BuildingEnergyVT.com

"Building Solutions for a Sustainable Future"


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