Oregon Tax Credits Blog

“Energy produces energy“, realizing the importance of energy and wanting the industry to grow, the U.S. House Ways and Means Committee approved $20 billion in energy tax credits and associated financial inducements that are part of the Obama’s initiative to revitalize the American financial system. The credit will give a lot of space to the energy industry and offer room to grow while giving a real boost to the American economy.

The legislation’s energy tax breaks would benefit the wind and solar energy industries, encourage energy-efficiency improvements to existing homes and help service stations recoup their costs for installing alternative energy pumps.

A tax credit is more important than a comparable tax deduction as a credit reduces tax dollar for dollar, while a deduction only eliminates a proportion of the tax that is payable. Customers can enumerate purchases on their federal income tax form, which will cut down the total amount of tax they owe the government. President Obama’s vision to facilitate the energy industry by tax credit is a real morale booster for it to grow up and produce. The long standing extension of the renewable energy production credits, which would cost the government $13.1 billion over 10 years, accounts for more than half of the stimulus package’s $20 billion in energy tax breaks and financial incentives being considered by the committee.

Home Energy Efficiency Improvement Credits, Residential Renewable Energy Credits, Automobile Credits and other credits towards taxes are available by the legislation. Customers who acquire particular products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in existing homes can be given a tax credit for 30% of the cost, up to $1,500, for improvements “placed in service” starting January 1, 2009, through December 31, 2010. Customers who install solar energy systems (including solar water heating and solar electric systems), small wind systems, geothermal heat pumps, and residential fuel cell and micro turbine systems can receive a 30% tax credit for systems placed in service before December 31, 2016; the previous tax credit cap no longer applies. Individuals and businesses who buy or lease a new hybrid gas-electric car or truck are eligible for an income tax credit for vehicles “placed in service” starting January 1, 2006, and purchased on or before December 31, 2010. The amount of the credit depends on the fuel economy, the weight of the vehicle, and whether the tax credit has been or is being phased out. Hybrid vehicles that use less gasoline than the average vehicle of similar weight and that meet an emissions standard qualify for the credit.

Tax credits for all different sections, there is a certain criteria to meet and avail the opportunity. It will definitely increase the value of the products and the depreciation cost is reduced. The total criteria can be seen on the official website of federal tax credit. This is a step towards encouraging people toward buying products which are highly efficient and produces more energy in comparison to the standard products.

There is Tax relief for Businesses, Utilities, and Governments as well and it includes Renewable Energy Incentives, Transportation & Domestic Fuel Security, Energy Conservation and Efficiency. The inducement include tax credit for the usage of wind, refined coal, geothermal, biomass, solar, and combined heat and power systems. In addition, $800 million of Clean Renewable Energy Bonds (CREBs) are authorized to finance renewable facilities. Under the sector of Transportation & Domestic Fuel Security the tax inducement is for fueling stations, cellulosic biofuel facilities, and for alternative fuel production, including biofuels, biomass gas versions of liquefied petroleum gas, liquefied or compressed natural gas, and aviation fuels. Idle reduction units and advanced insulation for heavy vehicles are also provided a tax exemption. The incentive for Energy Conservation and Efficiency is an opportunity for the government to reduce greenhouse emissions.

The United States of America is going through the worst recession; the industries are having miserable time. Same is the case with the energy industry, many renewable energy projects had a difficult time finding financing in current market conditions, and the legislation would allow such facilities in place in 2009 and 2010 to temporarily claim a 30 percent investment tax credit instead of the production tax credit that is normally payable over a 10-year period.

With more than 15 years of experience and expertise, Manzoor Hasan MBA, MST, CPA, is CEO at e-Health Vision Inc. and a seasoned consultant in healthcare and other corporate entities. He has extensive expertise in medical management, physician recruitment and as a liaison in negotiations with hospitals, managed care organizations, group practices, HMOs and others. He is also a partner in Arjunani, Hasan & CO, PC, CPAs in Houston, Texas.

Hasan has also earned a host of professional designation and honors including Certified Fraud Examiner (CFE), Certified Valuation Analyst(CVA), Certified Professional Manager(P. Mgr), designated (ALHC) (Associate Life & Health Claims) awarded by international claims association with distinction; a fellow of the Life Management Institute(FLMI), awarded by LOMA with distinction; a health insurance associate (HIA) and a Managed Health Professional (MHP), both designations awarded by health Insurance of America.

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