The Federal Tax Credits Blog

Posts Tagged ‘itc’

Question: Explain the difference between GST payable and Input tax credit and how they arise?

Answer: GST = general service tax. Buying a service or produce.

Input tax credit – a tax refund a business gets for using products for business.

Australia To Simplify GST Rules On Property,

The Goods and Services Tax (GST) margin scheme that applies to property will be simplified as part of the Gillard government’s ongoing commitment to making Australia’s tax system easier to use and understand, Bill Shorten, Assistant Treasurer, announced on December 10.

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WesternZagros Announces 2010 First Quarter Results

CALGARY, ALBERTA–(Marketwire – May 27, 2010) – N

Oilsands Lawsuit: Chipewyan Prairie Dene First Nation

Question: Should I file my tax return during an audit, and if I do, will I recieve my refund?

The State of South Carolina is investigating state tax returns of individuals that claimed the 1098-T tax credit. They are auditing a large amount of students, and I am one of them. Although I fit the criteria necessary to get the tax credit, and don’t forsee my having to pay back taxes (I was a full-time student, I paid my university fees out of pocket, I graduated from a south carolina high school, etc.) this is tax season, and I would like to file my return in order to get my federal refund back.
Should I wait and file an extension? If I do file now, will I get my refund when I expect to (within a few weeks).
I sent all the documents requested a few weeks ago, and have heard nothing back from the agent.
Thanks.

Answer: You are fine to file your federal taxes as well as the state taxes. Neither agency can take your refund without there first being an audit and a finding that you owe them anything. The state audit will not affect your federal tax filing at all!

Tax procrastinators running out of time

With just over a week until the tax-filing deadline and hundreds of new tax laws to consider, many Coachella Valley residents are scrambling to line up accountants, master the latest tax-preparation software or make time to do it themselves.

Tax Credit Extended for US Military

Senate passes $15 billion bill to spur employment

Senators approved a $15 billion job-creation bill on Wednesday, which would give businesses tax breaks for hiring the unemployed and states more money for infrastructure projects.

The Candidates 2008: Bill Richardson | Tax Policy

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