101409 Tax Incentives To Ease The Pain


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101409 Tax Incentives To Ease The Pain

  1. 1. Tax Incentives to Ease the Pain California Center for Sustainable Energy October 14, 2009   Presented by Walter Wang, J.D., LL.M
  2. 2. Circular 230 Disclosure Please be advised that, based on current IRS rules and standards, the following presentation was not intended or written to be used, and cannot be used by the taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer.  If this presentation is provided in any manner to another taxpayer, he or she cannot use the advice and should seek advice based on his or her own particular circumstances from an independant tax advisor.
  3. 3. Current Economic Conditions Global economic recession - Are we out of it yet? Significantly lower oil prices in 2009 compared to Summer 2008 highs Oil forecasts for 2010 suggest an increased trend.
  4. 4. Current Climate Conditions Recession = global decline in greenhouse gas emissions in 2009 If there was no recession, then: By late in the century, 90% of the Sierra snowpack would be lost, sea levels would rise more than 20 inches and there would be a 3 to 4 times increase in heat wave days ("Climate Change Proposed Scoping Plan", California Air Resources Board (October 2008)). San Diego Foundation 2050 Study
  5. 5. Residential Electricity Rates in California (1990-2009)
  6. 6. Price of Crude Oil (1970-2008)
  7. 7. Price of Crude Oil (1970-2008)
  8. 8. Price of Crude Oil  (2008-2009)
  9. 9. Purchasing a Hybrid Car Tax credit available to purchases of new hybrid cars between December 31, 2005 and before December 31, 2010. Credit applies only to the original purchaser of a new hybrid vehicle. Leases AMT Limitations
  10. 10. Purchasing a Hybrid Car Phase Out of Tax Credit Phase out period once a manufacturer has sold its 60,000th hybrid vehicle. What is the phase out period and how much of a reduction in the tax credit?
  11. 11. Purchasing a Hybrid Car Which Hybrids Qualify? Toyota/Lexus and Honda no longer qualify. GM, Ford, Chrysler, Mazda & Nissan still do. Vehicle List and Credit Amounts
  12. 12. Claiming the Tax Credit for the Purchase of a Hybrid Car IRS Form 8910
  13. 13. What About Clean-Diesel Cars? "Advanced Lean Burn Technology Motor Vehicle" Phase out rule Qualifying cars
  14. 14. Other Credits Available for Purchase of a Car Alternative Fuel Motor Vehicle Credit What does "Alternative Fuel" mean for purposes of this credit? Qualifying cars? What about the "flex fuel" designation? Plug-In Conversion Credit
  15. 15. Plug-In Electric Vehicles Tax Credit for new qualified plug-in electric drive motor vehicles Credit amounts & limitations 2009 rules vs. 2010 rules Phase out period AMT limitations Which cars?
  16. 16. Energy Efficiency and Energy Property Amount of Credit Limitations of credit and cumulative nature Applicable for the 2009 and 2010 taxable years No AMT limitation
  17. 17. Energy Efficiency and Energy Property Expenditures must be for your principal residence Vacation homes need not apply? Condominiums and HOA Qualifying Expenditures Additional Utility Rebates
  18. 18. Energy Efficiency and Energy Property Energy Star Label and Manufacturer's Certification Claiming the credit IRS Form 5695
  19. 19. What about Solar? 2008 Rules 2009-2017 Rules Amount of Credit AMT Carryforward of unused credit
  20. 20. What about Solar? Cash grant in lieu of tax credit not available for residential solar HOA Issues
  21. 21. What about Solar? State Incentives California Solar Initiative Taxation of CSI Rebate? Sales Tax Property Tax
  22. 22. Financing Options for Solar Cash purchase Home equity loan Solar lease Power purchase agreement Community Financing
  23. 23. Future Potential Feed In Tariffs