"Federal Energy Efficient Credit"

[SunTaxMan]

Client has contractor's invoice for replacement door and windows, with notation, "The windows and door on this repair qualify for federal energy efficient deduction of $1500.00."

Problem is that this repair was for a business property, not a residence. Form 5695 deal with RESIDENTIAL property. I don't think this taxpayer's expense qualifies - this is not the residence.

Is there a credit available for businesses?

Thanks,

[jainen]

>>Is there a credit available for businesses?<<

Who said anything about a credit? The invoice is quite correctly referring to the energy efficient DEDUCTION, which applies to doors and windows of commercial property.

[TAXBILLY]

IRC 179D is the cite but it expired 12/31/2008.

taxbilly

[mcb39]

Client has contractor's invoice for replacement door and windows, with notation, "The windows and door on this repair qualify for federal energy efficient deduction of $1500.00."

Problem is that this repair was for a business property, not a residence. Form 5695 deal with RESIDENTIAL property. I don't think this taxpayer's expense qualifies - this is not the residence.

Is there a credit available for businesses?

Thanks,

The business gets to deduct the entire cost of the windows and doors. Adding a credit would be double dipping.

[SunTaxMan]

"double-dipping?" Sure it would be, but there have been, and continue to be, some "little things" in tax law that are just that. I was hoping.....

[mcb39]

"double-dipping?" Sure it would be, but there have been, and continue to be, some "little things" in tax law that are just that. I was hoping.....

You are right about that, but not the case here. I have a client who installed solar panels for her business this year. Many thousands. The credit calculated on two different forms would have been over $7000, but she couldn't take it because she had no tax liability other than SE tax to credit it against. On the other hand, when I entered the solar panels on her asset depreciation worksheet; the minute I clicked on solar panels, the schedule automatically subtracted the $7000 plus from the basis. She could have carried the credit forward until used up., but went through some process wherein she is getting the credit right from the govt. As long as she was willing to do that paperwork and I didn't have to get involved, all is well. She did also get state grants, BUT, they have to be added in as income since she is deducting the cost of the panels. Seems as though they are trying to close some of those tax double-dipping laws. (I realise that this has nothing to do with the minimal cost of windows and doors, but since you brought up the subject.......)