Here is it guys...one may do it either way. "Rebate First": subtract the rebate first, take the 30% ITC on the difference "ITC First": take the 30% ITC on the full purchase price, subtract the rebate, treat the rebate as ordinary income and pay fed and state tax on it.
Which is better? If your client's marginal tax rate is less than 30% he/she should consider "Rebate First", if greater than 30%, "ITC First". Period - Peter Peter T. Parrish, President California Solar Engineering, Inc. 820 Cynthia Ave., Los Angeles, CA 90065 Ph 323-258-8883, Mobile 323-839-6108, Fax 323-258-8885 CA Lic. 854779, NABCEP Cert. 031806-26 peter.parr...@calsolareng.com -----Original Message----- From: re-wrenches-boun...@lists.re-wrenches.org [mailto:re-wrenches-boun...@lists.re-wrenches.org] On Behalf Of Nicholas Ponzio Sent: Monday, January 05, 2009 12:30 PM To: RE-wrenches Subject: [RE-wrenches] more on tax credits Wrenches, I have been operating under the assumption that federal tax credits are computed based on net cost AFTER any state reductions. I recently got a newsletter from a solar distributor stating that the 30% ITC is now calculated based on the TOTAL system cost including state incentive. Is this accurate? I can't find the reference on the SEIA website to confirm this. Thanks in advance for any feedback. -nik ponzio -- Nicholas Ponzio Building Energy 1570 South Brownell Road Williston, VT 05495 t: 802-859-3384 x15 f: 802-658-3982 www.BuildingEnergyVT.com "Building Solutions for a Sustainable Future" _______________________________________________ List sponsored by Home Power magazine List Address: RE-wrenches@lists.re-wrenches.org Options & settings: http://lists.re-wrenches.org/options.cgi/re-wrenches-re-wrenches.org List-Archive: http://lists.re-wrenches.org/pipermail/re-wrenches-re-wrenches.org List rules & etiquette: www.re-wrenches.org/etiquette.htm Check out participant bios: www.members.re-wrenches.org _______________________________________________ List sponsored by Home Power magazine List Address: RE-wrenches@lists.re-wrenches.org Options & settings: http://lists.re-wrenches.org/options.cgi/re-wrenches-re-wrenches.org List-Archive: http://lists.re-wrenches.org/pipermail/re-wrenches-re-wrenches.org List rules & etiquette: www.re-wrenches.org/etiquette.htm Check out participant bios: www.members.re-wrenches.org
