Check out expanded energy tax breaks

Business

Discussion

July 4, 2009

By David Compton / guest columnist The Meridian Star Sat Jul 04, 2009, 11:40 PM CDT

Now there's an added incentive to generate energy savings at home and at work. Reason: The new economic stimulus law — the American Recovery and Reinvestment Act of 2009 — expands the tax breaks available for qualified improvements made by individual and business taxpayers. Let's review the key changes.

Energy tax breaks at home. For starters, the new law increases the residential energy credit from 10% of qualified expenses to 30%. As under prior law, the credit covers a wide variety of expenses ranging from central air conditioning to hot water boilers to insulation. Furthermore, the lifetime dollar cap of $500 for the credit is replaced with a cap of $1,500 covering 2009 and 2010.

The new law also removes through 2016 other annual credit caps for solar hot water heaters, geothermal heat pumps, and small wind energy property installed in a home. But a $500 cap remains for qualified fuel cell property.

Energy tax breaks at work. Business taxpayers can now benefit from modified tax incentives.

• A business may claim a 30% investment credit for electricity produced from renewable sources.

• The new law enhances the business energy credit by eliminating the cap on small wind property. It also repeals the basis reduction requirement for subsidized energy financing.

• Instead of taking a production credit payable over ten years, business taxpayers can elect to treat certain alternative energy facilities as energy property eligible for the investment credit. This election may be made for qualified property placed in service after 2008 and before 2014 (2013 for wind property).

David Compton is a Certified Public Accountant with offices in Meridian and Birmingham, Ala.

Text Only

Business

Alternative investments, at a glance
If you’re seeking a different investment path and have a large amount of money to invest, you may already be considering an alternative investment.

May 20, 2012
John Anderson named administrator of Anderson South
May 20, 2012
EMBDC holds ribbon cutting for State Farm Insurance-Jeffrey Wilson
May 20, 2012 1 Photo
Changing jobs can have tax consequences
Taxes may be the last thing on your mind when you’re changing jobs, but overlooking their impact could mean missed tax-saving opportunities. Issues to consider include the following:

May 20, 2012
Working mothers
Recently a politician’s wife came under fire because she did not work outside of the home. The career woman implied that this stay at home mom was not intelligent or experienced to offer non-domestic advice. Instead of keeping her mouth shut and being thought of as a fool, she spoke out and removed all doubt.

May 13, 2012
CNB promotions, position announced
May 13, 2012
Why don’t you have disability income insurance?
If you can’t work and pay your bills, how are you going to cope? Let’s say an injury or illness prevents you from doing your job. How do you deal with the lost income?

May 13, 2012
You can’t hide in fixed income
When is being risk-averse too risky for the sake of your retirement? After you conclude your career or sell your company, you have a right to be financially cautious.

May 6, 2012
Agent of the Month for February
April 29, 2012
Tax bracket vs. tax rate: What’s the difference?
What’s your tax bracket? With the numbers from your federal income tax return fresh on your mind, you probably know the answer or can find it easily. Are you as familiar with your effective tax rate?

April 29, 2012
More Business Headlines

Business

Search Results

Discussion

Check out expanded energy tax breaks

Site Map

Contact Us