Eh, I think I'm being pretty fair to uncle Sam. I did have duct cleaning done prior to the system install, but I'm not including that in my claim.

Found this on: http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#chart


"The IRS defines "placed in service" as when the property is ready and available for use."

I would have been reluctant to place your system in service without first cleaning the ducts Seneca, childrens clothing, missing stuffed animals, and a stray caribou (consistant with a bank owned home)can really interfere with airflow across the coil.
J

RETROACTIVE??? Do my eyes deceive me?!?!?

http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#c6

Geo-Thermal Heat Pump:
"30% of the cost - NOT subject to $1,500 cap"
"Must be “placed into service” between Jan. 1, 2008–Dec. 31, 2016."

(Looks like they updated the site after Obama signed The American Recovery and Reinvestment Act of 2009, February 17th.)

If the cap applies to 2008 installs but not 2009 installs, that's stupid. Also, I think if that's the way it's written, we'll have a lot of people filing ammended returns because they realized they "forgot" to have their desuperheater installed, or some part of the thermostat wasn't set up, or any number of other reasons the installations wasn't "complete".

Huh, DSIRE seems to say the cap is only removed for 2009 installs -
http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US37F&State=federal¤tpageid=1&ee=1&re=1

I don't think anyone really knows, not even the law makers, what the deal is. It's just plain written poorly...good job congress!!!

My installer emailed me with info from Waterfurnace today about the 30%, and it seemed so ambiguous as to whether or not 30% is retroactive to last year...we installed last November.  We are expecting our refund anytime; does anyone know if we just lose out on that additional tax credit?

Vinman

  The $1500 cap you saw is the combined household cap.   There are credits for windows, doors, insulation, hvac, all kinds of stuff.  But you can't apply for each and every one, because there is a cap on the combined tax credit you can get.  Geothermal heat pumps are not subjected to that cap.  However, best as anyone can tell, 2008 GSHP's are subject to the $2000 cap.

Jon

not only that but the price for a geothermal system just went up, it may be necessary but then for the homeowner it becomes more
burden, not only that but electric rates are increasing. I guess it is better to pay more for electricity made in the USA  than foreign fuel.

I suspect the IRS will be looking at the date of the final payment to the contractor for the "placed in service" date.  It's an old Watergate line, "When in doubt, follow the money."

However, I looked at the EPA site thevinmanfxst provided below and it's pretty clear from that update that the cap removal is retroactive back to Jan 1, 2008.  I haven't seen that anywhere else before but the EPA updated their website yesterday, the day after the President signed the bill.  If true, that's good news for all those who made the plunge last year.  And there will be some big checks coming from the IRS in the next few months.  Now I'm wishing I could finagle my 2007 install to look like it was "placed in service" in 2008.

I just got this alert from my google alert on geothermal it pretty well spells out the rebate situation. http://www.earthtimes.org/articles/show/expanded-tax-incentive-encourages-installation-of-geothermal-heating-and-cooling-systems,722781.shtml
for me the $2,000 credit is nice but is really great for those who have to pay tax's.

For once the timing worked in my favor.  I signed the paperwork for my 4 ton closed loop geo system in November.  The well drillers were scheduled to start drilling in early December and I was sure I'd be on geo by Christmas.

Well, the weather got cold here in Minnesota and that delayed drilling for a few weeks.   I was begging the installer to finish up so I could take the $2k credit for 2008.  He said, "It may be more next year."  Yeah, sure...

My system went online February 4, 2009.  Looks like I'll get the full 30% credit as promised.  Including the electrical work I had to sub out, total bill including an Aprilaire 5000 and Honeywell Steamer humidifier, came out to a bit over $27K.

In 2007 we bought a Toyota Camry Hybrid automobile.  We missed a $1300 tax credit by 7 days and had to settle for a $650 credit.

The difference between the October 2008 rescue bill and the February 2009 stimulus bill is a net gain of almost $6200 for me - an amount not a SINGLE Republican was willing to give me.

And yes, we also had our ductwork cleaned but I'm not trying to claim that.

I may be out 11 grand because of this "timing" issue...

Just read an email from ACCA which indicated the EPA goofed on their web page earlier today.   Here is the pertinent language from that message:

In fact, as of this morning, ENERGY STAR'S website included updated -- but INCORRECT-- information about the equipment that qualifies for the new tax credits. They have been alerted about the inaccuracy, and told us they hope to have it corrected by this evening.

There was no indication exactly what was wrong but, hopefully, they have whatever was wrong corrected in the morning.  A lot of hyperventilation going on right now which makes it tough to separate the wheat from the chaffe.

All I have to say is, "Damn..." I guess I wont be getting stimulated...(I really could have used that $11,000...)

Those who already filed have no reason to rush to amend their return, as has been pointed out in this thread, the law and the language in the tax code "once written" may not agree, and could solve the problem for you. If not, amend next year.
J

I'd agree with Joe and wait for the final definitive word on the code.
If it says the cap is on for 2008 but not 2009, well, tell your dealer he forgot to install a hygrometer or such. Might be worth another 1,000 to save thousands in taxes over the next year or two.

Vinman,

The original bailout bill $2,000 cap was a PER YEAR cap. You can still claim the rest of the 30% tax credit next year.

Actually, given the form 5965 instructions, its a cap of $2,000, period. If you don't use that 2,000 up the first year, you can use the rest in following years, but the total for all those years is 2,000.

http://www.irs.gov/pub/irs-pdf/f5695.pdf