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Message
re: Getting solar panels today!!
Posted on 3/22/15 at 4:13 pm to lsu480
Posted on 3/22/15 at 4:13 pm to lsu480
quote:
I thought credits are basically the same as cash, so even if you didn't owe taxes you would get a check?
Not federal, but for states, yes that can be the case. Federal is only a tax credit and it goes against your tax liability. The Fed does not "cut you a check". I am not a CPA, so best thing to do is ask one for your specific tax situation.
ETA: Quick Google search and this link came up explaining what I said about the Fed credit
LINK
This post was edited on 3/22/15 at 4:18 pm
1
Posted on 3/22/15 at 4:36 pm to lsu480
quote:
I thought credits are basically the same as cash,
They can be and there is a whole market for buying and selling tax credits.
I was involved in a large project that was built with federal tax credits issued to the state. The fed gives each state federal tax credits every year to build low-income houses. Those tax credits are then distributed out to various projects.
What I found interesting was they sell those credits for like .80 cents on the dollar to get the capital needed to build the houses.
Say someone owes $1 million in taxes buys $1 million in tax credits for $800K. It still counts as $1 Million on the feds eyes and that person just saved $200K while satisfying his tax obligation.
Posted on 3/22/15 at 4:37 pm to Sho Nuff
Gotcha, thanks! I live in a loft and probably always will unless I get a family so solar panels aren't an option for me. I would LOVE to get that credit, and maybe have kids to have that write-off as well, but nope. It just sucks that you have to pay more taxes because of the type of home you own and you choose not to have kids.
Posted on 3/22/15 at 4:38 pm to stout
quote:
What I found interesting was they sell those credits for like .80 cents on the dollar to get the capital needed to build the houses.
Why wouldn't they be able to get like 95 cents on the dollar? Its free $ for someone so why not?
Posted on 3/22/15 at 4:41 pm to lsu480
They probably do sell that high. I am not sure as I am not rich enough to have to worry about buying tax credits.
This was a while back. I wasn't involved in the business side of it as I was just one of the contractors but .80 cents is what I was told they had agreed to sell the credits for. This was also $12 Million dollars worth of tax credits so that may have just been the average.
This was a while back. I wasn't involved in the business side of it as I was just one of the contractors but .80 cents is what I was told they had agreed to sell the credits for. This was also $12 Million dollars worth of tax credits so that may have just been the average.
Posted on 3/22/15 at 4:44 pm to stout
quote:
They can be and there is a whole market for buying and selling tax credits.
I think this may just be for commercial though, right? For the regular Joe, it is a credit against tax liability and you're not able to sell your credits or buy someone else's. You have to live in the home to claim the federal tax deduction. If you live part-time, then your credit is also reduced from 30%.
Posted on 3/22/15 at 4:48 pm to stout
Gotcha but I don't think you would need to be rich to take advantage? I mean if I could save 20% on my taxes by buying those at 80% I would be all over it.
Posted on 3/22/15 at 4:49 pm to Sho Nuff
quote:
I think this may just be for commercial though, right?
From my understanding, the are several different types. There are probably stipulations set forward for the solar credits that state they can't be transferred.
There was a doctor here that allegedly had several million worth of tax credits saved from doing charity work over the years so I know they are issued for different things and each have their own stipulations.
Posted on 3/22/15 at 4:51 pm to lsu480
quote:
Gotcha but I don't think you would need to be rich to take advantage? I mean if I could save 20% on my taxes by buying those at 80% I would be all over it.
Again, from my understanding, an average joe isn't going to get a hold of them. They sell these things in huge blocks. You aren't going to go buy $10K worth of them at a time or something.
I could be way off, but I had a friend that dealt with it all and he's the one that got me involved in the housing project. He understands it way better than I do and I just picked up bits of it here and there in conversation with him so I could be talking out of my arse right now.
This post was edited on 3/22/15 at 4:58 pm
Posted on 3/22/15 at 4:53 pm to LSUWhoDat
Good luck with the roof leaks.
Posted on 3/22/15 at 4:56 pm to stout
Gotcha. Well if I could get $30k of them this year I would be ALL over it! 
Posted on 3/22/15 at 4:57 pm to Sho Nuff
Anyone can purchase state tax credits (film industry) to lower their tax liabilty. You save about 8%, give or take.
Installing solar panels in LA gives you a 50% state credit and a 30% federal credit. You can carry forward any unused credits. You're correct in that it is money you would pay, but it is also money not being collected by the agencies. Thus, the government is subsidizing this industry.
Installing solar panels in LA gives you a 50% state credit and a 30% federal credit. You can carry forward any unused credits. You're correct in that it is money you would pay, but it is also money not being collected by the agencies. Thus, the government is subsidizing this industry.
Posted on 3/22/15 at 4:59 pm to stout
Stout, you are referring to federal credits, right?
State credits can indeed be purchased in smaller blocks.
State credits can indeed be purchased in smaller blocks.
Posted on 3/22/15 at 5:00 pm to VetteGuy
quote:
tout, you are referring to federal credits, right?
Yes
I have never had any dealings with state credits.
Posted on 3/22/15 at 5:02 pm to lsu480
Bigedlsu@yahoo.com
Seriously
Seriously
Posted on 3/22/15 at 5:11 pm to VetteGuy
quote:
Anyone can purchase state tax credits (film industry) to lower their tax liabilty. You save about 8%, give or take.
Correct.
quote:
Installing solar panels in LA gives you a 50% state credit and a 30% federal credit.
Which makes me question anyone not getting them in LA that owns their home. 80%.
quote:
You can carry forward any unused credits.
Yep.
quote:
You're correct in that it is money you would pay, but it is also money not being collected by the agencies.
Good. We pay more than enough in taxes and watch them completely wasted by the federal govt enough.
quote:
Thus, the government is subsidizing this industry.
And people with solar are helping the environment and saving tax payers from having more power plants built. Less oil being imported or whatever method particular places get their energy.
The cost of solar products has come down so much over the last 2 years that even without subsidies in states like CA, NY, MA, RI, HI, and a few others with high electric rates, it still pays off decently quick. The cost will continue to come down and the power/efficiency will keep going up. The 30% fed credit is about to sunset on 12/31/16, so the industry knows where they have to be.
This post was edited on 3/22/15 at 5:12 pm
Posted on 3/22/15 at 5:13 pm to Sho Nuff
Always good when knowledgable folks post on a topic.Posted on 3/22/15 at 5:14 pm to VetteGuy
I meant to edit my previous post that the states I mentioned do have subsides right now, but soon they won't. CA doesn't have a state credit anymore and soon won't have the Fed. And guess what, people will still buy/lease in droves as the cost of solar continues to come down.
Posted on 3/22/15 at 5:16 pm to Sho Nuff
I need enough solar panels to run a small window unit in a dog house. I am tired of letting them in during July, August, and September when it's 100+ out but I also don't want to pay the bill to run a unit 24/7.
Posted on 3/22/15 at 5:18 pm to BigEdLSU
Bookmarked. Ill hit you up soon for sure.
ETA: I live in AZ, do they work here?
ETA: I live in AZ, do they work here?
This post was edited on 3/22/15 at 5:19 pm
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