federal energy efficiency tax credit for 2009
michael
Just completed installation of a 25 SEER heatpump (similar to A/C) system. Paid $1400
minus instant utility (FPL) rebate $560, net payment $830.
Contractor gave me final invoice for $830, showing the utility rebate (which is paid
back to contractor by power utility).
Contractor also gave me the AHRI Certificate form, showing reference number, date,
rating and in large letters on top it states ".. This combination qualifies for
federal energy efficiency tax credit when placed in service between 2/17/2009 and
12/31/2009.."
My service placement date is 12/24/2009.
reading http://www.energystar.gov/index.cfm?c=tax_credits.tx_index
Questions:
(1) What line on form 5695 is for heatpumps ? Is it simply Line 2 ?
reading draft at http://www.irs.gov/app/vita/globalmedia/5695.pdf
(2) Which amount do I enter, the total cost of the system or the cost after utility
rebate ?
(3) If the manufacturer also issues a rebate, do I deduct that also ?
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removep...@yahoo.com
> Just completed installation of a 25 SEER heatpump (similar to A/C) system. Paid $1400
> minus instant utility (FPL) rebate $560, net payment $830.
>
> Contractor gave me final invoice for $830, showing the utility rebate (which is paid
> back to contractor by power utility).
>
> Contractor also gave me the AHRI Certificate form, showing reference number, date,
> rating and in large letters on top it states ".. This combination qualifies forfederalenergyefficiencytaxcreditwhen placed in service between 2/17/2009 and
> 12/31/2009.."
>
> My service placement date is 12/24/2009.
>
> reading http://www.energystar.gov/index.cfm?c=tax_credits.tx_index
>
> Questions:
>
> (1) What line on form 5695 is for heatpumps ? Is it simply Line 2 ?
No idea.
> reading draft at http://www.irs.gov/app/vita/globalmedia/5695.pdf
>
> (2) Which amount do I enter, the total cost of the system or the cost after utility
> rebate ?
As far as I know, you enter the total cost after rebate. Any credit
or deduction is based on what you actually paid. The store can say
the pump is $5000 but they give you a $2000 discount, so for tax
purposes the credit, deduction, depreciation, etc is based on $3000.
> (3) If the manufacturer also issues a rebate, do I deduct that also ?
Yes. If you pay for the item in 2009 but receive the rebate in 2009,
then I think you have to do a recovery. The follow sounds logical to
me: Suppose you pay $3000 so you get a credit of $300, but next year
you get a manufacture's rebate of $500, so in your next year's taxes
you enter Other Taxes of 10% of $500 or $50. Also, after 2009 you
decreased the basis of your property by the credit of $300, so after
2010 you increase it by $50.