[RE-wrenches] more on tax credits

Aram A. Alexander Aram at aramsolar.com
Mon Jan 5 21:39:34 PST 2009


Well said Peter.

Aram
----- Original Message ----- 
From: "Peter Parrish" <peter.parrish at calsolareng.com>
To: "'RE-wrenches'" <re-wrenches at lists.re-wrenches.org>
Sent: Monday, January 05, 2009 1:12 PM
Subject: Re: [RE-wrenches] more on tax credits


> 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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