Cigar Asylum Cigar Forum - View Single Post - Need an interpretation of a tax credit-any accountants/tax gurus here?

forgop · 11-07-2010, 06:24 AM

So, the government is offering tax incentives to get us to convert to more efficient HVAC equipment. For qualifying systems, this amounts up to a 30% credit (up to $1500 cap) on equipment/installation. For a geothermal system, they offer 30% with no cap. http://www.energy.gov/taxbreaks.htm

Are these assumptions correct?

1) Assume a $16k non-geothermal system, I'm capped at $1500, for a net cost of $14,500.

2) Assume a $26k geothermal system, I get a $7,800 credit, for a net cost of $18,200.

One salesman on Friday told me it's really only a deduction, so my net benefit is only my tax rate on the $1500 or $7800 above, but I don't think that's the case. What say you?

11-07-2010, 06:24 AM	#1
forgop Not a puffer Join Date: Oct 2008 First Name: Duane Location: Indianapolis, IN Posts: 2,869 Trading: (40)	Need an interpretation of a tax credit-any accountants/tax gurus here? So, the government is offering tax incentives to get us to convert to more efficient HVAC equipment. For qualifying systems, this amounts up to a 30% credit (up to $1500 cap) on equipment/installation. For a geothermal system, they offer 30% with no cap. http://www.energy.gov/taxbreaks.htm Are these assumptions correct? 1) Assume a $16k non-geothermal system, I'm capped at $1500, for a net cost of $14,500. 2) Assume a $26k geothermal system, I get a $7,800 credit, for a net cost of $18,200. One salesman on Friday told me it's really only a deduction, so my net benefit is only my tax rate on the $1500 or $7800 above, but I don't think that's the case. What say you?