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Chronicles of Tax Advisors

Remarkable Credits Easily Missed: Energy Credit

Posted by Todd Ancona Posted on Sept 21 2015

In this case our client came to us asking about energy credits. They had purchased and installed a solar panel system on their home for $25,000 and heard that there was tax credit available. We informed the client that there are many tax credits available to taxpayers. For the federal return we were able to get a $7,500 credit against their taxes due. By reducing the taxes due, their refund was increased because of what they had already withheld from their payroll. For the State return, we were able to get a $12,500 refundable credit. That meant that regardless of whether there was taxes due or not, the full amount of the credit was refundable. The client had originally paid $25,000 for the solar panel system; with $20,000 in credits, the system ended up costing only $5,000. Those savings on top of the later utility savings was an incredible value for the client.

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Todd Ancona, EA

Licensed to practice before the Internal Revenue Service

An Enrolled Agent (EA) is a federal authorized tax practitioner who has technical expertise in the field of taxation and who is empowered by the U.S. Department of Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service for audit, collections and appeals.

 

 

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