101409 Tax Incentives To Ease The Pain

Tax Incentives to Ease the Pain

California Center for Sustainable EnergyOctober 14, 2009

Presented by Walter Wang, J.D., LL.M

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.

Current Economic Conditions

Global economic recession - Are we out of it yet?Significantly lower oil prices in 2009 compared to Summer 2008 highsOil forecasts for 2010 suggest an increased trend.

Current Climate Conditions

Recession = global decline in greenhouse gas emissions in 2009If 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

Residential Electricity Rates in California (1990-2009)

Price of Crude Oil(1970-2008)

Price of Crude Oil (2008-2009)

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. LeasesAMT Limitations


Phase Out of Tax CreditPhase 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?


Which Hybrids Qualify?Toyota/Lexus and Honda no longer qualify.GM, Ford, Chrysler, Mazda & Nissan still do.

Vehicle List and Credit Amounts

Claiming the Tax Credit for the Purchase of a Hybrid Car

IRS Form 8910

What About Clean-Diesel Cars?

"Advanced Lean Burn Technology Motor Vehicle"Phase out ruleQualifying cars

Other Credits Available for Purchase of a Car

Alternative Fuel Motor Vehicle CreditWhat does "Alternative Fuel" mean for purposes of this credit?Qualifying cars?What about the "flex fuel" designation?

Plug-In Conversion Credit

Plug-In Electric Vehicles

Tax Credit for new qualified plug-in electric drive motor vehicles

Credit amounts & limitations2009 rules vs. 2010 rulesPhase out periodAMT limitationsWhich cars?

Energy Efficiency and Energy Property

Amount of CreditLimitations of credit and cumulative natureApplicable for the 2009 and 2010 taxable yearsNo AMT limitation


Expenditures must be for your principal residenceVacation homes need not apply?

Condominiums and HOAQualifying ExpendituresAdditional Utility Rebates


Energy Star Label and Manufacturer's CertificationClaiming the credit

IRS Form 5695

What about Solar?

2008 Rules2009-2017 RulesAmount of CreditAMTCarryforward of unused credit

What about Solar?

Cash grant in lieu of tax credit not available for residential solarHOA Issues

What about Solar?

State IncentivesCalifornia Solar InitiativeTaxation of CSI Rebate?Sales Tax Property Tax

Financing Options for Solar

Cash purchaseHome equity loanSolar leasePower purchase agreementCommunity Financing

Future Potential

Feed In Tariffs

101409 Tax Incentives To Ease The Pain

Technology

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