The Federal Tax Credits Blog

Archive for January, 2010

To cope with the gloomy real estate market, lawmakers and businesses call out for an increase in tax credit for first-time home buyers. Right now, the tax credit is maxed at $8,000 and is expiring this coming fall. Some business groups suggest the tax credit be increased to $15,000 for first-time home buyers.

According to the National Association of Realtors (NAR), 40% of home purchases consist of first-time home buyers, a 5% increase than the historical average. The tax credit, originally part of the economic stimulus package, was introduced last July 2008 and was later expanded in February. According to some economists, the tax benefit is crucial to stimulate home buying and to stabilize prices.

The proposal to increase the tax credit includes the following:

Bernard Bauhmol, an Economic Outlook Group economist, is confident that the Congress will approve the proposal because “it’s important that housing come back” despite the fact that raising the credit will result to reduction of taxes. Meanwhile, the Business Roundtable, a group of CEOs of big companies urges the Congress to increase the tax credit to up to $15,000 and make all home buyers eligible. Realogy CEO Richard Smith thinks that the real issues are how to stimulate the “move-up market” and how to pay for it.

At the moment, the policy on tax credit does not apply to singles who earn above $95,000 per annum and couples who earn above $170,000. There are some business leaders who want these income caps removed to increase the number of eligible individuals. At the end of the day, one thing’s for sure – if these proposals were approved, more people will definitely take advantage of the expanded tax credit.

A decade of news: Property taxes, hospital sale, steel, economy are top stories in Duneland

The Top 10 new storys of the decade in Duneland and Porter County, in no particular order.

Free Electric Car Tax Credit and Car Demo!

Question: Are there any “tax benefits” for installing bamboo floors?

We purchased and installed Bamboo Flooring in our Texas home over the holidays. As you know bamboo is considered “Earth Friendly” and somewhat pricey. I was just curious as a tax payer if there were any tax credits/deductions for installing bamboo floors like there is for installing energy star products like windows, roofs, and insulation. Any information (ie. links, articles, etc.) you can offer would be extremely helpful!

Answer: No, no tax benefits for the current year. If you owe any capital gains tax when you sell the house, you could add the cost to your basis.

Homebuilders across the suburbs attempt to be more ‘green’

Green building. Are people daunted by the concept? Are they diving into the deep water or merely getting their feet wet? As new green technologies emerge in the home-building industry, people need to be aware of their options because improvements have changed the way we live today.

Mississippi Avenue Lofts

Consumer Energy Tax Incentives What the Economic Stabilization Bill Means to You The recently passed Emergency Economic Stabilization Act of 2008 (P.L. 110-343) included, extended and/or amended many consumer tax incentives originally introduced in the Energy Policy Act of 2005 (EPACT).

The bill also included tax incentives for businesses, utilities, and government. For a complete summary of the tax incentives included in the bill, read the summary of Energy Tax Incentives in The Emergency Economic Stabilization Act of 2008. About Tax Credits A tax credit is generally more valuable than an equivalent tax deduction because a tax credit reduces tax dollar-for-dollar, while a deduction only removes a percentage of the tax that is owed. Consumers can itemize purchases on their federal income tax form, which will lower the total amount of tax they owe the government.

Fuel-efficient vehicles and energy-efficient appliances and products provide many benefits such as better gas mileage – meaning lower gasoline costs, fewer emissions, lower energy bills, increased indoor comfort, and reduced air pollution. In addition to federal tax incentives, some consumers will also be eligible for utility or state rebates, as well as state tax incentives for energy-efficient homes, vehicles and equipment.

Each state’s energy office web site may have more information on specific state tax information. Below is a summary of many of the tax credits available to consumers. Please see the ENERGY STAR®’s Federal Tax Credits for Energy Efficiency for complete details.

Home Energy Efficiency Improvement Tax Credits Consumers who purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in the home can receive a tax credit of up to $500 for improvements “placed in service” starting January 1, 2009 through December 31, 2009.

The ENERGY STAR® website has a complete summary of energy efficiency tax credits available to consumers. Residential Renewable Energy Tax Credits Consumers who install solar electric systems can receive a 30% tax credit for systems placed in service from January 1, 2006 through December 31, 2016; the previous tax credit cap of $2,000 no longer applies.

In addition, consumers who install small wind systems can receive a tax credit up to $4,000. Geothermal heat pumps also qualify for tax credits up to $2,000. Automobile Tax Credits Individuals and businesses who buy or lease a new hybrid gas-electric car or truck are eligible for an income tax credit for vehicles “placed in service” after January 1, 2006 and purchased on or before December 31, 2010. The amount of the credit depends on the fuel economy, the weight of the vehicle, and whether the tax credit has been or is being phased out. Hybrid vehicles that use less gasoline than the average vehicle of similar weight and that meet an emissions standard qualify for the credit.

There is a similar credit for alternative-fuel, diesel, and fuel-cell vehicles. This tax credit will be phased out for each manufacturer once that company has sold 60,000 eligible vehicles. At that point, the tax credit for each company’s vehicles will be gradually reduced over the course of another year. Read the IRS’s Summary of the Credit for Qualified Hybrid Vehicles for information on the status of specific vehicle eligibility.

If individuals and businesses buy more than one vehicle, they are eligible to receive a tax credit for each. If a tax-exempt organization buys such a vehicle, the retailer is also eligible to receive another credit.

Companies that buy heavy-duty hybrid trucks are also eligible for a larger tax credit. Consumers who purchase plug-in electric drive vehicles can also receive a tax credit. The credit for passenger vehicles and light trucks ranges from $2,500 to $7,500 based on the tax code formula.

Taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the total number of qualified plug-in electric drive vehicles sold in the U.S. exceeds 250,000. * Source: ENERGYSTAR.gov ** The IRS will determine final tax credit amounts. As more information becomes available, it will be posted on our web site. Original article from: http://www.energy.gov/taxbreaks.htm

Walmart, others make money on Oregon’s energy tax credits

Out of state corporations, such as Walmart and Costco, buy Oregon’s clean energy tax credits at a discount and make a profit.

Sci-Tech Today: Tax credits and nanotech to make solar energy more affordable

Colo. Housing Agencies Lag In Stimulus Spending
Colorado’s public housing agencies are lagging behind their counterparts nationally in spending federal stimulus money. According to the federal Government Accountability Office, Colorado’s 43 agencies had only spent $2.8 million of their nearly $18 million in regular stimulus funding as of November. Agencies can also apply for additional competitive grants. The GAO said the Denver Housing …

Electric Car Conversions – Batteries

The heart of any electric car conversion is the batteries. You will need special batteries, called deep cycle batteries in order to make your electric car work properly.

These batteries allow you to charge quickly and discharge further than regular car batteries normally found in your vehicle now.

They are called deep cycle because normal batteries would be wrecked by the frequent draining of the batteries used in the system. Think of it as pouring water out of a glass. A regular battery you can only pour about 10% of the water out, but a deep cycle battery you can regularly discharge down 30% or so.

You don’t want to go lower than 30% down though. Topping up a battery that is to the 70% level is as low as you go.

Where do you find deep cycle batteries? We have been living off the grid for over 10 years now and have been living with battery systems to run our home for that long.

The same batteries used with solar panels and wind generators are easily fitted to electric car conversions. They are easy to find, but can get expensive if you don’t know where to look. The plans show some great sources of free batteries too. That is a great savings since the batteries for an electric car can be one of the greatest expenses.

Watch this interesting video that shows some high school students building their own electric car, including a good shot at the batteries.

Video??

A bunch of high school students can do it, so can you.

Finding batteries is not that difficult either, isn’t it time you got started.

Electric car Plans

http:www.AlmostAnyting.info/EnergySaving

With $42,000 Tax Credit Ending, Tesla reports strong Boulder sales

The incredibly liberal tax incentive — which is set up to encourage people to buy alternatively fueled vehicles such as the electric Tesla Roadster — is only available for two more days. Beginning Jan. 1, the credit will be capped at $6,000.

Tesla Sedan Unveiled! Tesla Model S Hits the Road