Tax Credit Update

[Fsappo]

It looks as though the tax credit may remain but to a lesser extent. Anyone wishing me to forward them the complete email can email me at [email protected]

"Last night, the House voted 177 to 148 in favor of the $858 billion Tax Cut Compromise Package of 2010 which reduces the biomass heater tax credit to 10% with a $300 cap. The bill now goes to the White House for the President's signature. Another significant change that further restricts the tax credit for biomass appliances is that Congress removed the lower heating value measurement and only allows the credit towards the purchase price and not for installation.

Energy efficiency provisions were shortchanged even further by a clause that says the $500 tax credit is a lifetime maximum, meaning that if a homeowner has used this credit anytime since 2005, it cannot be used again. During the past 2 years, the credit up to $1,500 could be used regardless of whether the family has used the credit between 2005 and 2009."

 

[Turfguy]

Glad we got our stove installed when we did.

 

[Fsappo]

Im glad there is still some form of a credit at least. Im not really upset that its been reduced. I think we need to tighten our belts a little. What I dont get is that further down in the article it mentions that solar and wind power credits have NOT been reduced.

 

[SteveKG]

That is because solar and wind credits are a separate deal and good til 2016. Different animal.

 

[Intheswamp]

Im glad there is still some form of a credit at least. Im not really upset that its been reduced. I think we need to tighten our belts a little. What I dont get is that further down in the article it mentions that solar and wind power credits have NOT been reduced.

Only a small percentage of the population can afford to install significant viable wind or solar power generators but many more people can afford to install wood stoves and furnaces. Basically the government is snubbing their nose at mom-n-pop while pacifying the celebrities, fund-raisers, lobbyists, senators, ceo's, etc.,. Seems to be a little prejudice going on...a unit of energy is basically the same whether it's wood, hydro, atomic, wind, solar,....so why a differentiation in tax perks?

I do agree with Franks...we've all, as a country, need to do some belt tightening and it needs to start in with our federal government...lead by example, not rhetoric.

Ed

 

[Slow1]

That is because solar and wind credits are a separate deal and good til 2016. Different animal.

With different lobby groups behind them not to mention the solar and wind industries have their production/distribution/research facilities (i.e. $$'s) in different congressional districts/states. Follow the money.

 

[gyrfalcon]

Im glad there is still some form of a credit at least. Im not really upset that its been reduced. I think we need to tighten our belts a little. What I dont get is that further down in the article it mentions that solar and wind power credits have NOT been reduced.

Apparently, you're doing fine. Some of us, though, have had to tighten our belts so hard, they're cutting off the circulation.

I'm getting pretty sick of this "trickle-down" economics crap.

 

[Fsappo]

I'm also sick of funding tax credits with money we dont have. Its ok, we're being fundamentally changed as a country, so we should be ok soon.

 

[jharkin]

I'm also sick of funding tax credits with money we dont have. Its ok, we're being fundamentally changed as a country, so we should be ok soon.

almost 10% unemployment
millions still underwater on their homes
13? trillion in debt
2 wars ongoing
another war could break out in Korea or Iran
declining natural resources and skyrocketing costs for energy & food


I don't see how we are suddenly going to be "OK" anytime soon. Unless you are a banker that is.

 

[gyrfalcon]

I'm also sick of funding tax credits with money we dont have. Its ok, we're being fundamentally changed as a country, so we should be ok soon.

Uh, tax credits for individuals ain't the spending problem in this country.

 

[Slow1]

I'm also sick of funding tax credits with money we dont have. Its ok, we're being fundamentally changed as a country, so we should be ok soon.

Uh, tax credits for individuals ain't the spending problem in this country.

As a $ amount or even a % of spending you may well be correct. However I would argue that the attitude that justifies them is indeed a big part of the spending problem. My reference here is to the perspective that any money (credits or whatever) that comes to an individual (or corporation or whatever) in the form of a check/rebate/credit/cash written by the government is actually money from the government. If people would realize that all money from "the government" is really money from other individuals (directly or indirectly) in our country and try to put faces on those individuals then perhaps we wouldn't be in such support of said credits.

Wealth redistribution - the taking of money from one group of citizens and giving it to another - (whether to improve the environment or simply to 'make it more fair'), was never one of the intended purposes of our federal government.

 

[jotulguy]

Not sure if any of you had heard about this yet........

Here's a copy of Hearth & Home eNews, a newsletter that will be sent out when we believe there is news of interest to you.

Richard Wright, Editor
Village West Publishing
Biomass Appliance Tax Credit Slashed
WASHINGTON, D.C.


Last night, the House voted 177 to 148 in favor of the $858 billion Tax Cut Compromise Package of 2010 that reduces the biomass heater tax credit to 10 percent with a $300 cap. The bill now goes to the White House for the President's signature. Another significant change that further restricts the tax credit for biomass appliances is that Congress removed the lower heating value measurement and only allows the credit toward the purchase price and not for installation.


Energy efficiency provisions were shortchanged even further by a clause that says the $500 tax credit is a lifetime maximum, meaning that if a homeowner has used this credit anytime since 2005, it cannot be used again. During the past two years, the credit up to $1,500 could be used regardless of whether the family has used the credit between 2005 and 2009.


The reduction to 10 percent tax credit affects all energy efficiency measures that had enjoyed 30 percent credit for the past two years. Many members of Congress felt the 25C tax credit program had cost the government too much money and should not be extended in its current form at 30 percent up to $1,500.


This setback for incentives for wood and pellet heating systems is a result of biomass appliances being considered an energy efficiency device instead of a renewable energy system. Solar, wind and geothermal systems still enjoy the full 30 percent tax credit with no maximum and are not set to expire until 2016.


"This creates a terrible double standard for incentives between renewable energy systems favored and affordable by the wealthy and systems favored and affordable by average American families," said John Ackerly, president of the Alliance for Green Heat. "Fortunately, we understand that Congress will be revisiting these tax credits again in 2011 and advocates for cleaner and more efficient biomass appliances need to be prepared," he said. Instead of using tax credits based on a percentage of purchase and installation costs, Congress is likely to consider performance-based credits.

 

[ckdeuce]

I blame Bush.....

 

[Hiram Maxim]

I blame Bush.....

Your an intellectual powerhouse......

 

[Fsappo]

It is what we are heading for though, slowly but surely. But thats a discussion for the ash pan. My purpose in this thread was to simply let the good folks here know whats going on so they can plan their purchases. A few other threads started after this one on the same subject. Goes to show its important to our industry and our consumers.

 

[dave11]

But is it known whether these changes affect the tax year 2010, or do they begin with tax year 2011?

I'm sure lots of folks bought items this year thinking they were going to deduct the 30%.

 

[gyrfalcon]

I'm also sick of funding tax credits with money we dont have. Its ok, we're being fundamentally changed as a country, so we should be ok soon.

Uh, tax credits for individuals ain't the spending problem in this country.

As a $ amount or even a % of spending you may well be correct. However I would argue that the attitude that justifies them is indeed a big part of the spending problem. My reference here is to the perspective that any money (credits or whatever) that comes to an individual (or corporation or whatever) in the form of a check/rebate/credit/cash written by the government is actually money from the government. If people would realize that all money from "the government" is really money from other individuals (directly or indirectly) in our country and try to put faces on those individuals then perhaps we wouldn't be in such support of said credits.

Wealth redistribution - the taking of money from one group of citizens and giving it to another - (whether to improve the environment or simply to 'make it more fair'), was never one of the intended purposes of our federal government.

So not interested in arguing with extreme right-wing ideology in this forum.

Just take a look at the federal budget sometime and see where the bulk of your money's actually going. (Hint: It isn't to people with less of it than you have.)

 

[gyrfalcon]

But is it known whether these changes affect the tax year 2010, or do they begin with tax year 2011?

I'm sure lots of folks bought items this year thinking they were going to deduct the 30%.

It affects only going forward. Congress cannot change tax law retroactively.

 

[shawneyboy]

these changes do NOT affect 2010, they are for 2011 forward. I am so glad I made my purchase this year.

 

[begreen]

Merged the two threads.

 

[jotulguy]

Merged the two threads.

My thread was so friendly......Now I am a part of this political banter. ( I am just poking fun BeGreen!)

 

[begreen]

Sorry about that. I'm hoping this info makes it up to the sticky on the tax credit. It's nice to have the important bits in one thread for later reference.

 

[precaud]

With different lobby groups behind them not to mention the solar and wind industries have their production/distribution/research facilities (i.e. $$'s) in different congressional districts/states. Follow the money.

As further proof of this, the two solar air heaters I've installed, which are the most cost-effective solar implementation with the quickest payback, are not covered under the renewable energy definitions. They are only eligible for the energy efficiency rebate. They basically want you to buy a complicated, expensive system which requires specialized installation by licensed and approved contractors and local code approvals. So it is indeed 'follow the money'.