The 45L tax credit provides up to $2,000 per qualified new energy efficient home constructed by an eligible contractor. The credit was extended through 2011. To qualify for the credit, a home must meet energy reduction standards of at least 50% compared to older standards. The credit can be claimed by the contractor who constructed the home. Additionally, the credit may be available for certain other dwellings like vacation homes or units in multi-family buildings.
Year End Tax Planning Tips Individuals 2009guest366c4e
This document provides an overview of various tax benefits available to individuals related to retirement plans, health plans, itemized deductions, IRAs, home improvements, vehicle purchases, education expenses, and adoption. It discusses contribution limits, eligibility, phase-outs based on income, and how to claim various credits and deductions. Key benefits include tax-free contributions to retirement and cafeteria plans, the home improvement tax credit, deductions for education expenses, and tax credits for adoptions and student loans.
Top 25 grants and rebates for homeownersMatt Collinge
This document summarizes 25 top grants and rebates for property buyers and owners in British Columbia, Canada. It lists programs that provide rebates for things like the provincial sales tax, energy efficient renovations and appliances, property taxes, and more. Eligibility requirements vary but many are aimed at first-time home buyers, seniors, low-income individuals, and those undertaking green renovations or buying energy efficient products and homes. Contact information is provided for each program to find out more details.
Extension of Tax Cuts, Estate Changes Highlight Final Bill of 2010RobertWBaird
The Tax Relief, Unemployment Insurance Reauthorization and Jobs Creation Act of 2010 extended several expiring tax provisions, including extending the 2001 and 2003 tax cuts through 2012. It also increased the estate tax exemption to $5 million per individual for 2011-2012, reduced the top estate tax rate to 35%, and made the exemption portable between spouses. Additionally, it reduced the employee portion of the payroll tax from 6.2% to 4.2% for 2011 and extended Alternative Minimum Tax relief for 2010-2011.
1. The document discusses various tax credits available in 2007 for taxpayers who made energy efficient home improvements or purchases. Credits included a 10% residential energy property credit up to $500 and a 30% residential energy efficient property credit up to $2,000.
2. Alternative motor vehicle credits were also available for qualifying hybrid, fuel cell or alternative fuel vehicles, but were subject to phase out once manufacturers sold 60,000 units.
3. Energy production credits were outlined for generating renewable energy through sources like solar, wind and biomass or for producing low-sulfur diesel fuel. However, credits were limited by the amount of taxes owed.
Year End Tax Planning Tips Individuals 2009guest366c4e
This document provides an overview of various tax benefits available to individuals related to retirement plans, health plans, itemized deductions, IRAs, home improvements, vehicle purchases, education expenses, and adoption. It discusses contribution limits, eligibility, phase-outs based on income, and how to claim various credits and deductions. Key benefits include tax-free contributions to retirement and cafeteria plans, the home improvement tax credit, deductions for education expenses, and tax credits for adoptions and student loans.
Top 25 grants and rebates for homeownersMatt Collinge
This document summarizes 25 top grants and rebates for property buyers and owners in British Columbia, Canada. It lists programs that provide rebates for things like the provincial sales tax, energy efficient renovations and appliances, property taxes, and more. Eligibility requirements vary but many are aimed at first-time home buyers, seniors, low-income individuals, and those undertaking green renovations or buying energy efficient products and homes. Contact information is provided for each program to find out more details.
Extension of Tax Cuts, Estate Changes Highlight Final Bill of 2010RobertWBaird
The Tax Relief, Unemployment Insurance Reauthorization and Jobs Creation Act of 2010 extended several expiring tax provisions, including extending the 2001 and 2003 tax cuts through 2012. It also increased the estate tax exemption to $5 million per individual for 2011-2012, reduced the top estate tax rate to 35%, and made the exemption portable between spouses. Additionally, it reduced the employee portion of the payroll tax from 6.2% to 4.2% for 2011 and extended Alternative Minimum Tax relief for 2010-2011.
1. The document discusses various tax credits available in 2007 for taxpayers who made energy efficient home improvements or purchases. Credits included a 10% residential energy property credit up to $500 and a 30% residential energy efficient property credit up to $2,000.
2. Alternative motor vehicle credits were also available for qualifying hybrid, fuel cell or alternative fuel vehicles, but were subject to phase out once manufacturers sold 60,000 units.
3. Energy production credits were outlined for generating renewable energy through sources like solar, wind and biomass or for producing low-sulfur diesel fuel. However, credits were limited by the amount of taxes owed.
1. Taxpayers who made energy efficient home improvements or purchases in 2007 may qualify for tax credits of up to $500. Additional credits of up to $2,000 are available for qualifying energy efficient property purchases.
2. Credits are also available for purchasing alternative fuel or hybrid vehicles, though they phase out after manufacturers sell a certain number of qualified vehicles.
3. Owners of residential rental properties may qualify for an energy credit of up to 30% of the cost of installing solar, geothermal, or fuel cell energy systems. However, most energy tax credits expired at the end of 2007.
1. Taxpayers who made energy efficient home improvements or purchases in 2007 may qualify for tax credits of up to $500. Additional credits of up to $2,000 are available for qualifying energy efficient property purchases.
2. Credits are also available for purchasing alternative fuel or hybrid vehicles, though they phase out after manufacturers sell 60,000 qualifying vehicles. The amount of the credit depends on the vehicle.
3. Owners of residential rental properties may qualify for an energy credit of 30% of the cost of installing solar, geothermal, or fuel cell energy systems. The credit was previously 10% but was increased by the Energy Tax Incentives Act of 2005.
This document discusses tax considerations related to owning a second home. It notes that mortgage interest on loans up to $1 million for a second home can be deducted. Rental income from a second home used as a residence for 15 or more days a year must be reported. The sale of a second home can exclude up to $250,000 in capital gains if it was a main home for two of the past five years.
A property tax or millage rate is an ad valorem tax on the value of a property, usually levied on real estate. The tax is levied by the governing authority of the jurisdiction in which the property is located. This can be a national government, a federated state, a county or geographical region or a municipality.
Update on Current Rental Property Standards.pptxTod Anstee
Following the long-delayed Renter’s Reform Bill being introduced in parliament in May, many landlords may be considering whether their rental properties remain compliant with standards and regulations.
The document summarizes the key details of the American Recovery and Reinvestment Act's $8,000 tax credit for first-time homebuyers. Eligible buyers who purchase a home between January 1, 2009 and December 1, 2009 can receive a tax credit of up to $8,000. The credit is available to individual filers with incomes up to $75,000 and joint filers with incomes up to $150,000. If the home is sold within 3 years, the full credit amount must be repaid. Consult a real estate agent or tax advisor for more information on qualifying for the credit.
The document provides information about the Affordable Housing Tax Credit Program. It discusses the background and history of the program, how tax credits are calculated, typical deal structures, examples of tax forms involved, factors that influence tax credit pricing, the investor profile, legislative movements including HERA and ARRA, and an overview of Midwest Housing Equity Group which serves as a tax credit syndicator.
Historic Building Tax Credits Slide DeckMoskowitz LLP
The document provides information about historic building tax credits and how to apply for and claim them. It discusses definitions of eligible taxpayers and qualified rehabilitation expenditures. It also covers requirements to claim the rehabilitation credit such as substantially rehabilitating a certified historic structure. The document outlines the process for certified rehabilitation including applying to the National Park Service. It discusses how and when the credit can be claimed, including placed in service and accounting rules. It also addresses passive activity limitations and exceptions as well as buying and selling credits.
The document discusses various tax credits available to homeowners for making energy efficient home improvements and installing renewable energy systems under the American Recovery and Reinvestment Act. It outlines tax credits of 30% of the cost for improvements such as insulation, windows, doors, and high-efficiency heating and cooling equipment. Larger renewable energy systems like solar panels, wind turbines, and geothermal pumps are also eligible for a 30% tax credit. All improvements and systems must meet ENERGY STAR specifications to qualify for the tax credits.
§45L, Energy Efficiency Credits, has been extended for multifamily and residential developers through 2017. Low-rise apartment developers and homebuilders are eligible for a $2,000 tax credit for each new or rehabbed energy efficient dwelling unit that is first leased or sold by the end of 2017. Taxpayers also have the ability to amend returns to claim missed tax credits from previous years. Visit KBKG.com/45L for more information
This document summarizes Oregon Business Energy Tax Credits (BETC), which provide tax credits equal to 35-50% of eligible renewable energy or conservation project costs. It outlines who can purchase BETC from project owners through the state's pass-through program, receiving a lump sum payment in return for the tax credits. Purchasers must be eligible taxpayers who can claim the credits over 5 years. The process of matching buyers and sellers and transferring the credits is described. Recent changes to pass-through rates and the program's scheduled sunset are also noted.
The document provides information about the tax credit for first-time home buyers authorized by the American Recovery and Reinvestment Act of 2009. It defines eligible home buyers as those who have not owned a principal residence in the last three years. The tax credit is worth up to $8,000 for home purchases from January 1 to November 30, 2009, with the amount determined as 10% of the home's purchase price. The credit phases out for single filers with incomes over $75,000 and joint filers over $150,000.
The document provides background on the Affordable Housing Tax Credit program and discusses legislative changes that have impacted the program. It describes how the Housing and Economic Recovery Act of 2008 and American Recovery and Reinvestment Act of 2009 increased tax credits and other funding to boost affordable housing development during the economic downturn. It also outlines how Midwest Housing Equity Group invests in low-income housing tax credit projects to raise equity for development.
The document is a set of frequently asked questions about the $8,000 tax credit for first-time homebuyers purchasing a principal residence between January 1, 2009 and December 1, 2009. It provides answers to questions about who is eligible for the credit, how the credit amount is determined, applicable income limits, how to claim the credit, and other details about using the tax credit.
The document summarizes the key details of the extended 2009/2010 homebuyer tax credit. It explains that the credit is available for home purchases from November 7, 2009 through April 30, 2010. It qualifies both first-time homebuyers and current homeowners, with increased income limits up to $145,000 for singles and $245,000 for married filers. The maximum credit is $8,000 but is phased out above certain income thresholds. To qualify, the home must be the primary residence of the buyer. If the home is sold within 3 years, the credit must be repaid.
The document summarizes the key details of the extended 2009/2010 homebuyer tax credit. It explains that the credit is available for home purchases from November 7, 2009 through April 30, 2010. It qualifies both first-time homebuyers and current homeowners, with increased income limits up to $145,000 for singles and $245,000 for married filers. The maximum credit is $8,000 but is phased out above certain income thresholds. To qualify, the home must be the primary residence of the buyer. If the home is sold within 3 years, the credit must be repaid.
Instructions for Form 3468, Investment Credittaxman taxman
This 3 sentence summary provides the essential information about recapture of the investment credit from the document:
The investment credit must be refigured and recaptured in whole or in part if the property is disposed of or no longer qualifies as investment credit property before the end of the 5 year recapture period. Several events can trigger recapture, such as changing the use of the property, decreasing the business use, or receiving a renewable energy grant for property previously claimed for progress expenditures. Exceptions to recapture include keeping the property over the recapture period or electing to transfer the credit to the lessee of the property.
May/June 2010 Edition: Toronto Real Estate Market ViewsMagda Mo
The real estate market in the GTA saw record high home sales and new listings in April 2010. Sales volume increased 34% and new listings increased 59% compared to April 2009. The average home price also set a new record at $437,600, up 13% from April 2009. While prices and demand were up significantly, the increase in new listings helped restore some balance to the market. However, days on the market remained very low at just 21 days.
TAX DEPRECIATION AND TANGIBLE PROPERTY REGULATIONS UPDATE without detail_for ...Lora Bahrey-Ament
The document discusses updates to tax depreciation and tangible property regulations:
- Section 179 expensing amounts for small businesses have been made permanent at $500,000, with phase outs for purchases over $2 million.
- Bonus depreciation has been extended through different percentages until 2020.
- 15-year recovery periods have been made permanent for certain qualified improvement property.
- New qualified improvement property rules provide more flexibility than prior qualified leasehold, restaurant, and retail improvement property rules.
- Regulations clarify capitalization and expensing treatment of amounts to acquire, maintain, repair or replace tangible property.
This document provides an overview of historic tax credits from the perspective of PNC Community Development Banking. It discusses project structuring needs, the evaluation process, calculating the credits, pricing considerations, syndication structuring, guarantee requirements, and new markets tax credits. Common pitfalls for first-time users are also listed.
1. Taxpayers who made energy efficient home improvements or purchases in 2007 may qualify for tax credits of up to $500. Additional credits of up to $2,000 are available for qualifying energy efficient property purchases.
2. Credits are also available for purchasing alternative fuel or hybrid vehicles, though they phase out after manufacturers sell a certain number of qualified vehicles.
3. Owners of residential rental properties may qualify for an energy credit of up to 30% of the cost of installing solar, geothermal, or fuel cell energy systems. However, most energy tax credits expired at the end of 2007.
1. Taxpayers who made energy efficient home improvements or purchases in 2007 may qualify for tax credits of up to $500. Additional credits of up to $2,000 are available for qualifying energy efficient property purchases.
2. Credits are also available for purchasing alternative fuel or hybrid vehicles, though they phase out after manufacturers sell 60,000 qualifying vehicles. The amount of the credit depends on the vehicle.
3. Owners of residential rental properties may qualify for an energy credit of 30% of the cost of installing solar, geothermal, or fuel cell energy systems. The credit was previously 10% but was increased by the Energy Tax Incentives Act of 2005.
This document discusses tax considerations related to owning a second home. It notes that mortgage interest on loans up to $1 million for a second home can be deducted. Rental income from a second home used as a residence for 15 or more days a year must be reported. The sale of a second home can exclude up to $250,000 in capital gains if it was a main home for two of the past five years.
A property tax or millage rate is an ad valorem tax on the value of a property, usually levied on real estate. The tax is levied by the governing authority of the jurisdiction in which the property is located. This can be a national government, a federated state, a county or geographical region or a municipality.
Update on Current Rental Property Standards.pptxTod Anstee
Following the long-delayed Renter’s Reform Bill being introduced in parliament in May, many landlords may be considering whether their rental properties remain compliant with standards and regulations.
The document summarizes the key details of the American Recovery and Reinvestment Act's $8,000 tax credit for first-time homebuyers. Eligible buyers who purchase a home between January 1, 2009 and December 1, 2009 can receive a tax credit of up to $8,000. The credit is available to individual filers with incomes up to $75,000 and joint filers with incomes up to $150,000. If the home is sold within 3 years, the full credit amount must be repaid. Consult a real estate agent or tax advisor for more information on qualifying for the credit.
The document provides information about the Affordable Housing Tax Credit Program. It discusses the background and history of the program, how tax credits are calculated, typical deal structures, examples of tax forms involved, factors that influence tax credit pricing, the investor profile, legislative movements including HERA and ARRA, and an overview of Midwest Housing Equity Group which serves as a tax credit syndicator.
Historic Building Tax Credits Slide DeckMoskowitz LLP
The document provides information about historic building tax credits and how to apply for and claim them. It discusses definitions of eligible taxpayers and qualified rehabilitation expenditures. It also covers requirements to claim the rehabilitation credit such as substantially rehabilitating a certified historic structure. The document outlines the process for certified rehabilitation including applying to the National Park Service. It discusses how and when the credit can be claimed, including placed in service and accounting rules. It also addresses passive activity limitations and exceptions as well as buying and selling credits.
The document discusses various tax credits available to homeowners for making energy efficient home improvements and installing renewable energy systems under the American Recovery and Reinvestment Act. It outlines tax credits of 30% of the cost for improvements such as insulation, windows, doors, and high-efficiency heating and cooling equipment. Larger renewable energy systems like solar panels, wind turbines, and geothermal pumps are also eligible for a 30% tax credit. All improvements and systems must meet ENERGY STAR specifications to qualify for the tax credits.
§45L, Energy Efficiency Credits, has been extended for multifamily and residential developers through 2017. Low-rise apartment developers and homebuilders are eligible for a $2,000 tax credit for each new or rehabbed energy efficient dwelling unit that is first leased or sold by the end of 2017. Taxpayers also have the ability to amend returns to claim missed tax credits from previous years. Visit KBKG.com/45L for more information
This document summarizes Oregon Business Energy Tax Credits (BETC), which provide tax credits equal to 35-50% of eligible renewable energy or conservation project costs. It outlines who can purchase BETC from project owners through the state's pass-through program, receiving a lump sum payment in return for the tax credits. Purchasers must be eligible taxpayers who can claim the credits over 5 years. The process of matching buyers and sellers and transferring the credits is described. Recent changes to pass-through rates and the program's scheduled sunset are also noted.
The document provides information about the tax credit for first-time home buyers authorized by the American Recovery and Reinvestment Act of 2009. It defines eligible home buyers as those who have not owned a principal residence in the last three years. The tax credit is worth up to $8,000 for home purchases from January 1 to November 30, 2009, with the amount determined as 10% of the home's purchase price. The credit phases out for single filers with incomes over $75,000 and joint filers over $150,000.
The document provides background on the Affordable Housing Tax Credit program and discusses legislative changes that have impacted the program. It describes how the Housing and Economic Recovery Act of 2008 and American Recovery and Reinvestment Act of 2009 increased tax credits and other funding to boost affordable housing development during the economic downturn. It also outlines how Midwest Housing Equity Group invests in low-income housing tax credit projects to raise equity for development.
The document is a set of frequently asked questions about the $8,000 tax credit for first-time homebuyers purchasing a principal residence between January 1, 2009 and December 1, 2009. It provides answers to questions about who is eligible for the credit, how the credit amount is determined, applicable income limits, how to claim the credit, and other details about using the tax credit.
The document summarizes the key details of the extended 2009/2010 homebuyer tax credit. It explains that the credit is available for home purchases from November 7, 2009 through April 30, 2010. It qualifies both first-time homebuyers and current homeowners, with increased income limits up to $145,000 for singles and $245,000 for married filers. The maximum credit is $8,000 but is phased out above certain income thresholds. To qualify, the home must be the primary residence of the buyer. If the home is sold within 3 years, the credit must be repaid.
The document summarizes the key details of the extended 2009/2010 homebuyer tax credit. It explains that the credit is available for home purchases from November 7, 2009 through April 30, 2010. It qualifies both first-time homebuyers and current homeowners, with increased income limits up to $145,000 for singles and $245,000 for married filers. The maximum credit is $8,000 but is phased out above certain income thresholds. To qualify, the home must be the primary residence of the buyer. If the home is sold within 3 years, the credit must be repaid.
Instructions for Form 3468, Investment Credittaxman taxman
This 3 sentence summary provides the essential information about recapture of the investment credit from the document:
The investment credit must be refigured and recaptured in whole or in part if the property is disposed of or no longer qualifies as investment credit property before the end of the 5 year recapture period. Several events can trigger recapture, such as changing the use of the property, decreasing the business use, or receiving a renewable energy grant for property previously claimed for progress expenditures. Exceptions to recapture include keeping the property over the recapture period or electing to transfer the credit to the lessee of the property.
May/June 2010 Edition: Toronto Real Estate Market ViewsMagda Mo
The real estate market in the GTA saw record high home sales and new listings in April 2010. Sales volume increased 34% and new listings increased 59% compared to April 2009. The average home price also set a new record at $437,600, up 13% from April 2009. While prices and demand were up significantly, the increase in new listings helped restore some balance to the market. However, days on the market remained very low at just 21 days.
TAX DEPRECIATION AND TANGIBLE PROPERTY REGULATIONS UPDATE without detail_for ...Lora Bahrey-Ament
The document discusses updates to tax depreciation and tangible property regulations:
- Section 179 expensing amounts for small businesses have been made permanent at $500,000, with phase outs for purchases over $2 million.
- Bonus depreciation has been extended through different percentages until 2020.
- 15-year recovery periods have been made permanent for certain qualified improvement property.
- New qualified improvement property rules provide more flexibility than prior qualified leasehold, restaurant, and retail improvement property rules.
- Regulations clarify capitalization and expensing treatment of amounts to acquire, maintain, repair or replace tangible property.
This document provides an overview of historic tax credits from the perspective of PNC Community Development Banking. It discusses project structuring needs, the evaluation process, calculating the credits, pricing considerations, syndication structuring, guarantee requirements, and new markets tax credits. Common pitfalls for first-time users are also listed.
1. 45L tax credit:
not just for home contractors
On December 17, 2010 President Obama signed into law
the Tax Relief, Unemployment Insurance Reauthorization,
and Job Creation Act of 2010 (the 2010 Tax Bill). This
legislation extended the New Energy Efficient Home Tax
Credit under Code Section 45L through the end of 2011. The
Code Section 45L credit is the applicable amount for each
qualified new energy efficient home which is constructed
by an eligible contractor, and acquired by a person from
the eligible contractor for use as a residence during the tax
year. With today’s energy efficient building trends and the
fact that the 45L benchmark is based on earlier standards,
most current homes do exceed the standards and qualify.
The credit is generally $2,000 for a qualifying residence contractor and not the third party contractor. A “person”
that: can be an individual, a trust, an estate, a partnership, an
association, a company or a corporation.
• Is located in the United States,
Another requirement to be eligible for the 45L credit is that
• was substantially completed after August 8, 2005 and
the home is a “dwelling” unit. A dwelling unit is a single
before December 31, 2011, and
unit providing complete independent living facilities for one
• meets the energy savings requirements of Code Section or more persons, including permanent provisions for living,
45L(c). To meet this requirement, the dwelling must sleeping, eating cooking and sanitation within a building that
generally be certified in accordance with guidance is not more than three stories above grade in height. Based
prescribed by the IRS to have a projected level of annual on this definition the units within an apartment building or
heating and cooling energy consumption that meets condominium, a houseboat or house trailer might qualify
the standards for a 50% reduction in energy usage. for the 45L credit as well as a traditional home. There is
no requirement in Code Section 45L that the property be
For purposes of the new energy efficient home credit,
the person’s principal residence. Thus, assuming the other
construction includes substantial reconstruction and
requirements of Code Section 45L are satisfied, vacation
rehabilitation. The credit is claimed by the “eligible
homes might qualify for the credit.
contractor.” For purposes of the 45L tax credit, an eligible
contractor is the person who constructed the qualified new The Internal Revenue Code generally provides for a one-
energy efficient home. A person must own and have a basis year carry back and 20-year carry forward for the current
in the qualified energy efficient home during its construction year unused business credits. However, for an Eligible
to qualify as an eligible contractor with respect to the Small Business (ESB) credit generated in 2010, the carry
home. For example, if a person that hires a third party back period is five years rather than one year. However, no
contractor to construct the home owns and has the basis in credits attributable to energy efficient homes can be carried
the home during its construction, that person is the eligible
2. back to any tax year ending on or before the effective date With the Small Business Job Act of 2010, ESB credits
of the new energy credit. Since the credit was not allowable incurred in 2010 are not subject to the AMT limitation
until the 2006 tax year, this effectively limits the carry back as stipulated above. For purposes of Code Sec. 38(c)
for a 45L credit generated in 2010 to 4 years. including the rules permitting ESB credits determined for
tax years beginning in 2010 to be used to offset the AMT,
To illustrate the potential impact of the 45L credit for the an ESB is, with respect to any tax year: a corporation the
owner of an apartment building, assume the following facts: stock of which is not publicly traded, a partnership, or a
ABC Company, LLC had an apartment complex constructed sole proprietorship, if the average annual gross receipts
that was completed in October of 2010. The complex is of the corporation, partnership, or sole proprietorship for
three stories tall and has 950 units within the building. ABC the three-tax-year period preceding the tax year does not
Company, LLC owned the property during the construction exceed $50,000,000. If such 45L credit generated in 2010
of the apartment building and is therefore considered the qualifies as an ESB credit, the tentative minimum tax is
“eligible contractor.” Assuming the 50% energy reduction treated as being zero. Therefore, the ESB credit can offset
requirements are satisfied and 800 units are occupied both the regular and AMT liability. In the example above,
as of December 31, 2010, the potential tax credit for ABC if the credit was generated in 2010 as opposed to 2009,
Company, LLC would be $1,600,000 (800 units * $2,000 per the entire $20,000 could have been used to offset both the
unit). Even though the apartment was completed in 2010 regular tax and tentative minimum tax.
with 950 units available, it is limited to the 800 occupied
units as the dwelling needs to be used as a residence in As part of the New Energy Efficient Home Tax Credit under
order to qualify. The depreciable basis of the apartment Code Section 45L, a $1,000 credit is also available for an
building would be reduced by $1,600,000. eligible contractor with respect to a manufactured home.
The manufactured home must have a projected level of
Eligible contractors use Form 8908 to claim a credit for each annual heating and cooling energy consumption that is at
qualified energy efficient home sold during the year. The least 30% below the annual level of heating and cooling
eligible contractor reports the amount of the current year energy consumption of a reference dwelling unit in the
credit shown on Line 4 of Form 8908 and on line 1p of Form same climate zone. It must also conform to the Federal
3800 to determine the amount of his allowable general Manufactured Home Construction and Safety Standards.
business credit for the tax year. Being a credit, it has the
potential to lower taxes dollar for dollar. Under the Small For further information, please contact your Dixon Hughes
Business Jobs Act of 2010, the potential benefit of the 45L Goodman tax advisor or Stuart Nofsinger at
credit can be larger than in prior years for an eligible small stuart.nofsinger@dhgllp.com
business. Prior to 2010, the majority of business credits
reported on Form 3800 were not allowable as a credit to
offset the Alternative Minimum Tax (AMT). For example, if an about dixon hughes Goodman:
individual had a 45L credit in 2009 in the amount of $20,000, Dixon Hughes Goodman is the largest accounting firm
his regular tax was $80,000 and the tentative minimum based in the Southern U.S. and among the nation’s top
tax was $78,000, only $2,000 of the 45L credit would have 15. With a staff of over 1700 located in eleven states and
been allowed in 2009 (the difference between the regular Washington DC, the firm provides a wide array of assurance,
tax and tentative minimum tax). The $18,000 unused 45L tax and consulting services to clients of all sizes. For more
credit could be carried back one year and carried forward information, visit www.dhgllp.com.
for 20 years to offset other year’s taxes, but it would still be
subject to the AMT limitation.
2011 Dixon Hughes Goodman LLP | dhgllp.com
To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication
(including any attachments) is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under
the Internal Revenue Code.