2009 September | Taxes Advisory

The Export Tax Rebate Lead-Acid Battery

30. September 2009 · Write a comment · Categories: General Tax · Tags: Battery, export, LeadAcid, Rebate

This directive is currently has been approved by the EU Council and the European Parliament through the relevant domestic laws corresponding. Directive also stressed that all of the battery manufacturers should be registered.

European Union environmental standards to improve the battery, the battery vgp-bps9a/b y will give China a huge impact on exports. Chinese battery industry to conduct follow-up study should be timely to raise production standards in order to actively respond to the EU’s “greenbarriers.”

China intends to abolish the export tax rebate lead-acid battery lead-acid batteries in China intended to abolish the export tax rebate

This directive is currently has been approved by the EU Council and the European ParliamentA1078 Battery, will soon become EU law. Into EU law, the EU member states are required within two years, through the relevant domestic laws corresponding. Directive also stressed that all of the battery manufacturers should be registered.

European Union environmental standards to improve the battery, the battery will give China a huge impact on exports. Chinese battery industry to conduct follow-up study should be timely to raise production standards in order to actively respond to the EU’s “greenbarriers.”

China intends to abolish the export tax rebate lead-acid battery lead-acid batteries in China intended to abolish the export tax rebate

How to Offset the Cost of Solar Panels

30. September 2009 · Write a comment · Categories: General Tax · Tags: Cost, Offset, Panels, Solar

Public concern about global warming and rising energy costs has led to an increased interest in clean, renewable energy. Solar energy is a particularly attractive alternative to petroleum dependence. Solar energy is a clean, reliable and endlessly renewable energy source, and new technology has made it more affordable than ever to homes and businesses.

Even so, the initial cost of buying and installing a solar energy system can be daunting. A typical solar installation for a single family dwelling could cost ,000. Though using solar power saves money on utility bills, eventually giving a complete return on your investment, the initial cost can be prohibitive to many consumers.

Fortunately there are numerous financial incentives at the federal, state and local level that can significantly defray the cost of installing a solar energy system.

Incentives are available from federal, state and municipal governments, from local and regional groups including non-profit and private organizations, and from local utility companies.

At the federal level, the Renewable Energy and Energy Conservation Tax Act of 2005 provided funding for tax incentives for residential and commercial applications. This Act seeks to support the development of energy efficiency and energy independence.

The Act provides two federal tax incentives for homeowners. The Residential Solar Fuel Cell Tax Credit is a personal tax credit which applies to solar hot water systems, photovoltaic, or PV systems (solar electricity), fuel cells, or other solar technologies.

Homeowners can receive a credit for 30% of the cost of installing a solar energy system, with a cap of ,000 for a PV system, and an additional ,000 for a solar hot water system; and a cap of 0 per .5 kW generated by fuel cells.

Excess credit, that credit which amounts to more than the taxpayer’s liability, can be carried forward to the next tax year. Installation must be certified by the Solar Rating and Certification Corporation, or SRCC; or by a comparable rating system endorsed by individual states.

Additionally, at least one-half of the residence’s energy needs must be provided by the solar technology.

The federal government also allows a Personal Exemption : the Residential Energy Conservation Subsidy Exclusion. This exemption applies to solar and other efficiency technologies, including solar hot water, solar space heat, and Photovoltaic.

Owners of single and multi-family dwellings can deduct any subsidies provided to them by public utilities for energy conservation. That means that any increase in a homeowner’s income due to a subsidy or rebate from a utility company as a result of the installation of an “energy conservation” measure, will not be taxed.

“Energy conservation” has not yet been explicitly defined by the IRS, though in practice it is understood to include solar technologies. It would wise, however, to consult with a tax advisor about this matter.

The federal government also provides federal loans, both residential and commercial. These are Energy Efficiency Mortgages, or EEMs, that home and business owners can use to finance energy efficiency improvements to existing buildings.

EEMs are available through the FHA and the VA. FHA loans allow lenders to add 100% of the costs of energy efficiency improvements to existing mortgages, by insuring loans of up to 5% of the appraised value of a home, or ,000, whichever is the greater, with a cap of ,000.

VA loans can be used to purchase an existing home or to refinance a mortgage for energy efficiency improvements.

EEMs are also available through Energy Star, Fannie Mae and Freddie Mac. Energy Star loans are not guaranteed by the federal government, but they currently provide a listing of 49 financial institutions that will provide loans specifically for energy efficient new homes or improvements to existing homes.

Private lenders such as Fannie Mae and Freddie Mac also provide conventional energy efficiency mortgages as well.

Federal grants are also available to commercial and agricultural entities to promote the development of energy efficiency and energy independence. Unfortunately, the Federal Renewable Energy and Energy Conservation Tax Act is due to expire at the end of 2008.

The most recent energy bill, passed in December 2007, did not extend funding for renewable energy. While the matter of funding for renewable energy will no doubt come up again, and be vigorously debated in the next budget, as of now, its future is in doubt at the federal level.

Luckily, federal funding is only one facet of the broad array of financial incentives available. At the state level, there are tax incentives, state loans, grants, and rebates, municipal, regional and local rebates, utility rebates and credits, private funding, and non-profit funding.

State and local incentives vary greatly. Some states have taken the lead in offering financial help to home and business owners who want to develop energy independence. Other states clearly lag behind, though in some cases, private, non-profit and utility incentives pick up the slack from state governments.

Each state has its own tax law, and tax incentives range from tax rebates of thousands of dollars for each system (for example Vermont offers up to ,750 for a PV system and another ,750 for a solar hot water system), to tax exemptions.

Two types of tax exemptions found are sales tax exemptions, a one time exemption; and property tax exemptions, which carry into successive years. Property tax exemptions allow any increase in the value of a property due to the installation of renewable energy systems to be exempt from taxation.

In addition to tax incentives at the state level, there are other sources of financial aid such as low interest loans, grants, and rebates from state and municipal governments, utility companies, and various private and non-profit organizations. Eligibility varies as widely as incentives do.

So how can a consumer find what types of financial incentives are available in his state?

The best source of information is the Database of State Incentives for Renewable Energy, or DSIRE. DSIRE is a comprehensive listing of financial incentives for renewable energy. DSIRE offers information about financial aid on the federal and state level.

To find information about your state, simply click your state on the map, and any incentives offered in your state are listed, including tax breaks, loans, grants, local or regional incentives, and rebates offered by public utility systems. Links to further websites and contact information are also provided.

Additionally, there is an easy link to federal tax information from each state page. DSIRE is the go-to site for determining what financial assistance you may be eligible to receive.

Don’t overlook consulting with an experienced solar energy installation specialist. He or she should be familiar with any funding that is available in your area.

Also, do consult with a tax advisor to ensure that you correctly claim the right credits and exemptions on your tax return.

With all the financial incentives currently available, installing a solar energy system is more affordable than it has ever been. There’s never been a better time than right now to invest in solar energy.

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Why Should You Take Advantage of the Housing Tax Credit Program?

30. September 2009 · Write a comment · Categories: General Tax · Tags: Advantage, Credit, Housing, Program, Should, Take

As many potential homebuyers know, the American Recovery and Reinvestment Act of 2009 was revised and expanded beyond what was offered in 2008. The housing tax credit established in 2008 was a credit that functioned much like a no-interest loan which had to be repaid in 15 equal, annual installments beginning in the 2010 income tax year.

The housing tax credit for 2009, which is claimed by using form 5405, allows for an increase up to 00 for purchases made before December 1, 2009. The bonus is that the credit doesn’t have to be paid back as long as the home remains the taxpayer’s main residence for three years following the date of the purchase. So, the housing tax credit is a true credit.

According to the IRS, “First time homebuyers represent a significant portion of existing single-family home sales. The expansion of the first time homebuyer credit will make it easier for first-time homebuyers to enter the housing market this year.”

There are a couple of guidelines that buyers need to be aware of for the tax credit program, such as that the credit begins to phase out for taxpayers whose adjusted gross income is ,000 or 0,000 for joint filers. Taxpayers are allowed to claim 10 percent of the purchase price up to 00, or up to 00 for those married but filing separately. So for the market in Southern Orange County, any home valued over ,000 could qualify for the full housing tax credit amount….which is just about any home in our market!

This housing tax credit works nicely with the FHA financing guidelines to provide homeowners a perfect opportunity to step into the current market. For an FHA loan, you do not have to be a “true” first time home buyer to take advantage of the tax credit program. To qualify, you cannot have owned real estate in the past three years and the property that is being purchased must be owner occupied. The down payment requirements for FHA financing are currently lower than the requirements for the national conforming loans, as low as 3.5%. Additionally, in the Orange County, California and Laguna Beach Real Estate Market FHA financing can go as high as 9,750.

Credit requirements for FHA financing may be more favorable than you think. Back in the day, the processing of FHA loans was inefficient, which was part of the reason that the Alt-A and subprime lending market was born. A combination of non-prime credit standards and competition in the market brought more efficiency to borrowers that required these loans. Currently, an FHA loan amount up to 7,000 requires a credit score of 580; an FHA loan amount over 7,000 requires a credit score of 620. Terms and qualifications are different from lender to lender, so be sure to shop around for the best loan scenario for your current financial situation.

But FHA is not the only way to go. There are conforming, and high balance conforming loans available to homebuyers as well. These loans will typically require a larger down payment such as 10% down on a single family residence in the conforming loan range, or as much as 20% down with a high balance conforming loan. As a side note, the high balance conforming loans, with available amounts up to 9,750 is currently supported by the government and set to expire December 31, 2009.

So what does all this mean for you? There is evidence of excitement and movement for listings and sales that fall into the FHA and conforming loan range. The area’s real estate market is at long last exhibiting signs of a gradual but sustained recovery while continuing to favor buyers in search of the best-priced buying opportunities. In true “supply-and-demand” fashion, the region remains in a solid buyers’ market, allowing first time homebuyers to take advantage of the housing tax credit as well as favorable prices and interest rates.

So how do you know when to get into the market? For starters, you can request a Market Snapshot Analysis Report.

Taking advantage of opportunities, such as the housing tax credit, when others are shying away from a market is how the rich get richer. Right now, buyers see an opportunity to make a real estate purchase that will give them a return on their money better than what other forms of investments may offer. Buyers understand that a purchase today, with the favorable home values and financing options, could allow for a return on their money of well over 8% per year which is better than the ROI on many other types of “safe” investments today. By putting pen to paper and making sense of the opportunities available, it can be easier to put fears aside.

Hurry and Take Advantage of the Home Buying Tax Credit

28. September 2009 · Write a comment · Categories: General Tax · Tags: Advantage, Buying, Credit, Home, Hurry, Take

Time is running out for you to avail tax incentive provided by the American Recovery and Reinvestment Act of 2009 for first time home buyers to purchase a home. In accordance with the provisions of the act, tax credit for an amount of USD 8000 is provided to first time home buyers provided they purchase a home between January 1, 2009 to December 31, 2009. It is important to understand the definition of a first time home buyer. All individuals who have not purchased a home up to a period of three years prior to purchase under this scheme are eligible to avail this tax credit. It is not necessary that you need to buy a new home; your purchase could be even a re-sale to claim this tax credit.

The amount of tax credit available under the scheme is 10% of the value of the home purchase subject to a maximum amount of USD 8000. There has been a income limit specified for eligible first time home buyers wherein the maxim um income for a single tax payer should not exceed USD 75,000 while it stands exactly twice at USD 150,000 for married tax payers. In case however, you have not owned a house during the past three years but your spouse has purchased a house within the same period, you are ineligible to be benefited under this scheme. There is something known as the phase out range which has been defined for this tax credit program. This has been set at USD 20,000. This implies that the tax credit entitlement shall be nil for an individual income exceeding USD 75,000 i.e. USD 95,000. In case of married taxpayers the income at which the tax credit shall become nil equates to 20,000 exceeding 150,000 i.e. 170,000. For individuals who have income between USD 75,000 up to USD 95,000 there is a way of computing the reduced tax credit on a proportional basis.

The process for claiming the tax credit is fairly simple and user friendly. An individual is allowed to claim the tax credit while filing federal income tax return. The first time home buyer should fill in a form known as the IRS Form 5405. Apart from this form, there is no other form required. It is extremely hassle free to enjoy this privilege. It is best advised that you read about this scheme on the official website of IRS to know about the scheme in depth. The resource is exhaustive and does complete justice to the process of tax credit availability for first time home buyers.

The objective of the federal government in allowing this tax credit is to make housing affordable for each individual and give impetus to the housing sector. A healthy housing industry positively impacts other sectors such as steel, cement and utilities as well and has a cascading effect on the country’s economic growth. So go ahead and grab your new home before you step into 2010.

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Understanding the Homebuyers Tax Credit

28. September 2009 · Write a comment · Categories: General Tax · Tags: Credit, Homebuyers, Understanding

The federal government has recently begun a history making incentive to help first time homebuyers make real estate purchases. If you qualify for the new tax credit, you can get 00 toward the purchase of your home.

First, in order to qualify for the tax credit, you have to purchase and make closing on your home by December 1,2009. If you have built a new house, you must be living in it by December 1, 2009. Your home buying experience, must have taken place between February 1, 2009 (when the credit was first enacted) and December 1, 2009 (the scheduled end date for the credit) to qualify. It is likely Congress will extend the end date, but you shouldn’t rely on that at present.

While the tax credit is stipulated for first time homebuyers, that categorization is not exact. You will qualify as a first time homebuyer if you have not owned a home threes years prior to buying this one. If, for instance, if you owned a home and sold it five years ago and have not owned a home since, you qualify as a first time homebuyer under this credit.

Don’t count on getting the full 00. Under the tax credit, you will get 00 as a maximum. If 10% of the total cost of your home is less than 00, you will receive that amount as opposed to 00. If you are single and earn ,000 a year or more, you will get less than 00, and if you are married and earning 0,000 in combined annual income or more, you will get less than 00 back as well.

If you sell your home within three years of purchasing it under the tax credit, you will have to pay back whatever you received from the federal government. This is a restriction applied to help keep real estate flippers from benefiting from the tax credit.

There was a similar credit in 2008, but it required that you pay the money back to the federal government over fifteen years. The current tax credit requires no return of the money.

This is a refundable credit, meaning that if you owe the federal government nothing or less than 00 at tax time, the entire refund of 00 is refundable to you less what you owe. So, if your total tax liability by April 15, 2010 is 00, you will get 00 back if you used the first time homebuyers tax credit for 2009.