Articles & Guides By Sandor Lenner
 |
You can also subscribe to my RSS feed here:
.
A Primer to Solar Energy Credit and Residential Energy Efficient Property Credits
This nonrefundable energy tax credit may help you pay for qualified residential alternative energy equipment, such as geothermal heat pumps, solar hot water heaters, and wind turbines. The credit was expanded by The American Recovery and Reinvestment Act in early 2009. A few of the previously imposed maximum amounts were eliminated and it now provides for a credit equal to 30% of the cost of qualified property. The credit is usually equal to 30% of the cost of the equipment and may include the cost of the labor used to install it. For 2009, there is generally no cap on this credit and it’s available for equipment placed into service through 2016. Regrettably, it’s a nonrefundable credit, which is an important, because in this case, your credit is limited to your tax liability.
Elderly or Disabled Tax Credit
A tax credit may be available if you are 65 years of age prior to December 31, 2009 or under 65 but retired and were permanently and totally disabled on the date you retired. Regrettably, this credit is not as significant as some of the other tax credits that are available to qualifying individuals. Notwithstanding the size of the credit, like any tax credit, it should not be overlooked since it could result in some unanticipated cash for you.
Education Tax Credit – Now Includes Computers
New tax legislation signed in February 2009, increases the Hope Credit from $1,800 to $2,500 and changes its name to The American Opportunity Tax Credit for two years. The new credit has a broader reach then the Hope Credit, and is now available to more taxpayers, including taxpayers with higher incomes and those that do not owe a tax. In addition, required course materials will be considered a qualifying expense, and the credit claimed is extended from two years to four post-secondary education years.
