Business Tax Recovery Logo


Tax Credit Consulting: Federal Energy Tax Credit Cody WY

With the Mid-East a mess, the environment looking iffy and prices climbing, energy issues are front and center. To promote changes to new energy sources, the federal energy tax credit system has been created.

Roger Fransen
(307) 634-1525
1800 Carey Avenue, Suite 700, P.O. Box 467
Cheyenne, WY
Specialties
Energy, Administrative Law, Workers Compensation, Appeals, Litigation
Education
University of Wyoming College of Law,South Dakota State University
State Licensing
Wyoming

William J. Thomson II
(307) 634-8891
204 East 22nd Street
Cheyenne, WY
Specialties
Energy, Environmental, Oil & Gas, Government
Education
University of Wyoming College of Law
State Licensing
Wyoming

Bruce S. Asay
(307) 632-2888
1807 Capitol Avenue, Suite 203
Cheyenne, WY
Specialties
Employment, Civil Rights, Energy, Administrative Law, Litigation
Education
University of Wyoming College of Law,Brigham Young University
State Licensing
Wyoming

Teresa B. Buffington
(307) 778-4200
2515 Warren Avenue, Suite 450, P.O. Box 1347
Cheyenne, WY
Specialties
Financial Markets And Services, Business, Real Estate, Energy
Education
University of Colorado School of Law,Ohio University
State Licensing
Wyoming

Walter F. Eggers III
(307) 778-4200
2515 Warren Avenue, Suite 450, P.O. Box 1347
Cheyenne, WY
Specialties
Environmental, Oil & Gas, Tax, Energy
Education
University of Wyoming College of Law,American University
State Licensing
Wyoming

Brian Joseph Hanify
(307) 634-8891
204 East 22nd Street
Cheyenne, WY
Specialties
Administrative Law, Appeals, Corporate, Employment, Energy
Education
University of Wyoming College of Law,University of Wyoming
State Licensing
Wyoming

Michael Douglas Basom
(307) 634-8891
204 East 22nd Street
Cheyenne, WY
Specialties
Administrative Law, Banking, Business, Corporate, Energy
State Licensing
Wyoming

Lee Barton Peach
(307) 634-8891
204 E. 22nd Street
Cheyenne, WY
Specialties
Business, Corporate, Health Care, Energy, Litigation
Education
Southern Illinois University School of Law,Southern Illinois University School of Law,Murray State U
State Licensing
Colorado, Wyoming

Matthew Delano Kaufman
(307) 634-7723
2515 Warren Avenue, Suite 500, P.O. Box 1208
Cheyenne, WY
Specialties
Business, Litigation, Corporate, Environmental, Energy
Education
University of Wyoming College of Law,University of Wyoming
State Licensing
Colorado, Wyoming

Lucas Evan Buckley
(307) 634-7723
2515 Warren Avenue, Suite 500, P.O. Box 1208
Cheyenne, WY
Specialties
Litigation, Administrative Law, Environmental, Energy, Appeals
Education
University of Wyoming College of Law,Boston University
State Licensing
Colorado, Wyoming

Tax Credit Consulting: Federal Energy Tax Credit

Federal Energy Tax Credit

With the Mid-East a mess, the environment looking iffy and prices climbing, energy issues are front and center. To promote changes to new energy sources, the federal energy tax credit system has been created.

The Energy Policy Act of 2005, signed into law on August 8, 2005, offers consumers and businesses federal tax credits beginning in January 2006 for purchasing fuel-efficient hybrid-electric vehicles and energy-efficient appliances and products. Most of these tax credits remain in effect through 2007.

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. Beginning in tax year 2006, consumers will be able to itemize purchases on their federal income tax form, which will lower the total amount of tax they owe the government. Importantly, the actual federal energy tax credit amounts will be set by the IRS in 2006.

Individuals and businesses who buy or lease a new hybrid gas-electric car or truck are eligible for, and can receive, an income tax credit of $250-$3,400 depending on the fuel economy and the weight of the vehicle. Hybrid vehicles that use less gasoline than the average vehicle of similar weight and that meet an emissions standard qualify for the credit. "Lean-burn" diesel vehicles could also qualify, but currently available diesel vehicles do not meet the emissions standard. There is a similar credit for alternative-fuel vehicles and for fuel-cell vehicles.

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. Currently, there is a $2,000 tax deduction for hybrid vehicles for the remainder of 2005.

Federal energy tax credit options also exist for homeowners. 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 beginning in January 2006.

The Act also provides a credit equal to 30% of qualifying expenditures for purchase for qualified photovoltaic property and for solar water heating property used exclusively for purposes other than heating swimming pools and hot tubs. The credit can't exceed $2,000.

Improvements must be installed in or on the taxpayer's principal residence in the United States. Home improvement tax credits apply for improvements made between January 1, 2006 and December 31, 2007.

Businesses are eligible for tax credits for buying hybrid vehicles, for building energy- efficient buildings, and for improving the energy efficiency of commercial buildings (as outlined in the Energy Policy Act of 2005).

Small producer biodiesel and ethanol credit. This credi...

Click here to read the rest of this article from BusinessTaxRecovery.com