Rick - Tax Question

[REDPYRO]

Rick can you briefly explain how the energy tax write off works.

I am replacing the boiler in my house and this is the last year I can claim it.  Is it like a $500 credit or something?

[Slicktrax]

hot water boilers need to achieve an annual fuel utilization efficiency rate of al least 95.  you can rely on the manufactures certification that the boiler meets the qualifications for the credit.  you claim the credit on form 5695 line 5b.  it is limited to $150 for boilers.  hope it helps. 

[REDPYRO]

stupid government....a whole $150...that wont help me at all...you think they would offer a real incentive to conserve energy....oh wait this is the USA where we dont really care how much we use....

good lord.  according the my furnace guy it would cut my gas usage by at least 50% and the will only give a $150 credit...unbelievable

[MechanicalEngineer]

You should do it knowing you're trying to help save the planet (although it's those cows that are REALLY polluting!!)  Hehe.   

[Slicktrax]

sounds like the

stupid government....a whole $150...that wont help me at all...you think they would offer a real incentive to conserve energy....oh wait this is the USA where we dont really care how much we use....

good lord.  according the my furnace guy it would cut my gas usage by at least 50% and the will only give a $150 credit...unbelievable

almost word for word from our update seminar a few years ago.  great idea, just an almost insulting amount to offer for a credit.

[REDPYRO]

i am doing it and the monthly cost saving will be nice, but tax incentive it is not!

I did see you can get like $5000 for insulation...but i am sure to get that must you have to live in 50 feet of insulation or something?

[REDPYRO]

maybe i sould buy $150 worth of dictionaries for Congress.

In economics, an incentive is any factor (financial or non-financial) that provides a motive for a particular course of action, or counts as a reason for preferring one choice to the alternatives


They seemed to be confused.


Which reminds me of a classic from the other day.

I was flipping channels and for some reason stopped on Cspan.  Memorized by the boring dude talking i just happened to look into the background behind the guy giving his "shpeel" on something.  The old dude, and damn they are all old dudes, was sitting there reading the newspaper.  Classic!  How much do we pay him?  Oh ya they get to give themselves raises...thats fair.  I think all government positions should be volunteer or make minimum wage.

[Slicktrax]

thats the problem i have with most "socially inspired" tax incentives.  they are excellent ideas on paper, but dollar wise they rarely make economic sense.  education and energy credits for example.  the nonbusiness energy property credit (what you asked about) is limited to a lifetime dollar amount of $500 and the property must be placed in service in 2006 or 2007. 

[micki]

I wonder if there is anything we can use as a tax credit from building Russell's house?  We put insulation in it does that count?!  LOL

[Slicktrax]

its very possible that some of the things you put in would qualify.  check out this summary from energy star http://www.energystar.gov/index.cfm?c=products.pr_tax_credits

[ohioreef]

When we were in DC we sat in on a session of the House. There was only a dozen or so people there!!

[REDPYRO]

ya they dont have to go to work if they dont want to...usually "most" show up for important votes but not always...  government fat cats piss me off

[micki]

its very possible that some of the things you put in would qualify.  check out this summary from energy star http://www.energystar.gov/index.cfm?c=products.pr_tax_credits

Thanks Rick. I'll check that out.