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Tax Credit Consulting: Federal Energy Tax Credit Leawood KS

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.

Brandon L. Kane
(913) 234-7457
6201 College Blvd., Suite 500
Overland Park, KS
Specialties
Energy, Corporate, Telecommunications
Education
University of Kansas School of Law,University of Kansas,University of Kansas
State Licensing
Kansas, Missouri

John D. Peterson
(913) 234-7405
6201 College Boulevard, Suite 500
Overland Park, KS
Specialties
Administrative Law, Real Estate, Energy, Telecommunications, Land Use & Zoning
Education
Washburn University School of Law,Washburn University
State Licensing
Kansas

David James Haydon
(816) 460-1825
9712 Mohawk Lane
Leawood, KS
Specialties
Mergers & Acquisitions, Corporate, Business, Energy
Education
University of Virginia School of Law,University of Kansas
State Licensing
Kansas

Michael Dillon Hockley
(816) 292-8233
1000 Walnut, Suite 1400
Kansas City, MO
Specialties
Environmental, Federal Regulation, Energy, Litigation
Education
University of Nebraska School of Law,United States Military Academy,United States Military Academy
State Licensing
Kansas, Missouri, Nebraska

John D. Peterson
(913) 234-7405
6201 College Boulevard, Suite 500
Overland Park, KS
Specialties
Administrative Law, Real Estate, Energy, Telecommunications, Land Use & Zoning
Education
Washburn University School of Law,Washburn University
State Licensing
Kansas

Anne E. Callenbach
(913) 234-7449
6201 College Boulevard, Suite 500
Overland Park, KS
Specialties
Administrative Law, Energy, Insurance, Telecommunications
Education
Washburn University School of Law,Missouri State University
State Licensing
Kansas

Frank A. Caro Jr.
(913) 234-7409
6201 College Boulevard, Suite 500
Overland Park, KS
Specialties
Administrative Law, Energy, Insurance, Telecommunications
Education
Assumption College,Washburn University
State Licensing
Kansas

Robert Kent Green
(816) 983-8121
Ste 1000, 4801 Main St.
Kansas City, MO
Specialties
Energy, Mergers & Acquisitions, Commercial
State Licensing
Missouri

Charles Christian Steincamp
(316) 262-4000
8301 East 21st Street North, Suite 450
Wichita, KS
Specialties
Environmental, Energy
Education
Washburn University School of Law,Kansas State University
State Licensing
Kansas

Connie D. Tatum
(316) 631-3112
8621 East 21st Street North, Suite 200
Wichita, KS
Specialties
Mergers & Acquisitions, Business, Energy, Securities Offerings, Real Estate
Education
University of Oklahoma College of Law,Oklahoma State University
State Licensing
Kansas

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...

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