Business Tax Recovery Logo


Tax Credit Consulting: Federal Energy Tax Credit Winston Salem NC

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.

Edward S. Finley Jr.
4325 Mail Services Center
Raleigh, NC
Specialties
Energy, Litigation, Tax
State Licensing
North Carolina

Joseph W Eason
(919) 877-3807
Po Box 30519
Raleigh, NC
Specialties
Antitrust, Insurance, Energy
State Licensing
DC, North Carolina

Everette Winslow
(919) 834-6534
416 Morson Street
Raleigh, NC
Specialties
Energy Law

Data Provided by:
Joseph A. Fernandez
100 N TRYON ST BANK OF AMERICA
CHARLOTTE, NC
Specialties
Energy, Mergers & Acquisitions, Business
Education
Wake Forest University School of Law,University of North Carolina, Chapel Hill
State Licensing
North Carolina

Mark Vasco
(704) 444-1043
101 S TRYON ST STE 4000
CHARLOTTE, NC
Specialties
Litigation, Arbitration, Business, Energy, Financial Markets And Services
Education
University of North Carolina School of Law,Syracuse University
State Licensing
North Carolina

Allain C. Andry IV
(704) 377-8359
101 N TRYON ST STE 1900
CHARLOTTE, NC
Specialties
Financial Markets And Services, Energy, Banking, Mergers & Acquisitions, Corporate
Education
Duke University,Stanford University
State Licensing
North Carolina

Nicholas Reid Frazier
(919) 791-0009
4010 BARRETT DR STE 205
RALEIGH, NC
Specialties
Business, Public Finance, Energy, Litigation, Employment
State Licensing
North Carolina

Gardner Marshall Payne
(919) 836-4005
TWO HANNOVER SQ., 434 FAYETTEVILLE ST STE 2140
RALEIGH, NC
 
Kent J. Mccready
(704) 377-8312
101 N TRYON ST STE 1900
CHARLOTTE, NC
Specialties
Venture Capital, Banking, Corporate, Mergers & Acquisitions, Energy
Education
University of North Carolina School of Law,University of Delaware
State Licensing
North Carolina

N. Gregory Dewitt
118 E. Main St., Ste. A
Carrboro, NC
Specialties
General Practice, Business, Real Estate, Energy
Education
North Carolina Central University School of Law,University of North Carolina, Chapel Hill,University
State Licensing
North Carolina

Data Provided by:

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