1. Tax Incentives to Ease the
Pain
California Center for Sustainable Energy
October 14, 2009
Presented by Walter Wang, J.D., LL.M
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. 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. 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
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. 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. 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. Claiming the Tax Credit for the
Purchase of a Hybrid Car
IRS Form 8910
13. What About Clean-Diesel Cars?
"Advanced Lean Burn Technology Motor Vehicle"
Phase out rule
Qualifying cars
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. 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. 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. 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. Energy Efficiency and Energy Property
Energy Star Label and Manufacturer's Certification
Claiming the credit
IRS Form 5695
19. What about Solar?
2008 Rules
2009-2017 Rules
Amount of Credit
AMT
Carryforward of unused credit
20. What about Solar?
Cash grant in lieu of tax credit not available for residential
solar
HOA Issues
21. What about Solar?
State Incentives
California Solar Initiative
Taxation of CSI Rebate?
Sales Tax
Property Tax
22. Financing Options for Solar
Cash purchase
Home equity loan
Solar lease
Power purchase agreement
Community Financing
