# Going green incentives just what good is a tax credit for most?



## Leonard (Feb 17, 2010)

I will apologize in advance for venting

I have been beating my head against the wall since having my taxes done last Friday, I built a new home and spent the money buying energy star appliances, heating equipment, wood burning insert, and have set up for solar HW just not complete yet and I get nothing from my state ( Maine ) or government for any of this. I know I know tax credits right?  Well I for one refuse to let the IRS use my money all year interest free and put a lot of effort into making sure we come out a wee bit ahead and not having to pay at the end of the year, which gains me nothing for being concerned about the environment or my wallet VERY FRUSTRATING.

If our government really wanted us to become less dependent on fossil fuels they would offer real incentives instead of tax credits.  I chose to drive an 01 truck for another couple years so that I could drop the coin on SHW and get started on a wood boiler, just who benefits from tax credits people lousy with money who can afford the 400k home, new cars and green equipment for the home?


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## Flatbedford (Feb 17, 2010)

I don't understand. I tax credit should offset your tax liability whether you are getting a refund on excess withholding tax or not.


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## fraxinus (Feb 17, 2010)

Something's wrong. There are both Maine state and Federal tax credits for many of the things you have done.


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## SolarAndWood (Feb 17, 2010)

fraxinus said:
			
		

> Something's wrong.



Maybe the tax preparer?


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## peakbagger (Feb 17, 2010)

Time to find another tax preparing firm unless you have no taxable income and therefore no tax liability. Otherwise the federal credits are deducted off the total tax liability. If you underwithhold to keep from lending to uncle sam for a year, the credits reduce what you would owe the government, so the net result is that you didnt have to write a check. It may feel better to get a check from the government, but its the exactly the same as not havng to write one and you got to keep your money in your pocket for a year.


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## mayhem (Feb 17, 2010)

Doesn't matter how you setup your deductions from your paycheck, your tax obligation is the same...all that differs is how muhc you get back or have to pay out every spring.  Getting tax credits for energy star appliances and building green, etc will reduce the amount you are taxed for FY 2009 and will thus reduce your balloon payment or increase your refund.  

If you didn't get any tax credits in your return you need to find a new preparer or do it yourself.  Personally I recommend spending the $20 or so and buy a copy of Tax Act, Tax Cut or Turbo Tax...they're incredibly easy to use and you can do a very complicated return yourself and file it electronically.  Got my returns done, filed and both refunds were direct deposited in my checking account within a week.

One other thing that coulsd screw this up, its possible that the improvements and applicances you've invested in do not qualify for the tax credits.


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## onion (Feb 17, 2010)

luv2burnwood said:
			
		

> I will apologize in advance for venting
> 
> I have been beating my head against the wall since having my taxes done last Friday, I built a new home and spent the money buying energy star appliances, heating equipment, wood burning insert, and have set up for solar HW just not complete yet and I get nothing from my state ( Maine ) or government for any of this. I know I know tax credits right?  Well I for one refuse to let the IRS use my money all year interest free and put a lot of effort into making sure we come out a wee bit ahead and not having to pay at the end of the year, which gains me nothing for being concerned about the environment or my wallet VERY FRUSTRATING.
> 
> If our government really wanted us to become less dependent on fossil fuels they would offer real incentives instead of tax credits.  I chose to drive an 01 truck for another couple years so that I could drop the coin on SHW and get started on a wood boiler, just who benefits from tax credits people lousy with money who can afford the 400k home, new cars and green equipment for the home?



*New construction doesn't get the tax credit*.  That is a ridiculous requirement but it is nonetheless a requirement.  As for your question of who benefits...the answer would be me for one.  My home isn't anywhere near 400k, my newest vehicle is a 2002 truck and the only thing green about my house is the insert and the CFL bulbs in all the fixtures.


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## fraxinus (Feb 17, 2010)

There is no one one tax credit or rebate program. New construction is, indeed, eligible for many of them. Go to http://efficiencymaine.com. This site contains all the information you'll probably need about appliance rebates, solar rebates, boilers and other state and Federal programs. 

You do, however, seem to be suggesting that a tax credit is somehow not money in your pocket. It is, just in an indirect way. A tax credit lessens your actual tax, not just your taxable income. If your total tax was going to be $5000 and you have a $500 tax credit, your tax is reduced to $4500. This can either reduce the money you owe or increase your refund. In either case, it's money in your pocket.


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## onion (Feb 17, 2010)

Sorry, I was only referring to the federal credit.  Maine may very well have other credits I am not aware of.


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## Leonard (Feb 17, 2010)

SolarAndWood said:
			
		

> fraxinus said:
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Yep the more I dig the more I find the finger pointing to the tax preparer I guess my next step will be to have a preparer look them over.


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## Leonard (Feb 17, 2010)

I would think a couple grossing in low 70's with one dependent and having both had married 0 paycheck deductions and qualifying for the 6500 new home credit would net us more than 4000 in a refund never mind the energy star boiler, appliances etc that we have.


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## mayhem (Feb 18, 2010)

^^ Seems reasonable.  I gross low 70's, married, one dependant.  I claim 5 on my W-2 and get back a few hundred combined.  

I think you need to do your taxes over again.


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## onion (Feb 18, 2010)

luv2burnwood said:
			
		

> I would think a couple grossing in low 70's with one dependent and having both had married 0 paycheck deductions and qualifying for the 6500 new home credit would net us more than 4000 in a refund never mind the energy star boiler, appliances etc that we have.



Sounds like the preparer did something wrong.  I am close to your situation although single no dependents.  I got the 8k credit and no energy credits.  0 exemptions on the W-4.  My refund is $9700 and change.

I think something major was missed.  Is the $4k a combined refund from state and federal?  Is your W-4 at 0 exemptions for both federal and state withholding?  Did you have to pay some local income tax that they didn't take out of your paycheck?  

Basically what this tells me is that before any of the energy credits your withholding was 2500 short and you actually OWED 2500 before the credit was applied.  That seems highly unlikely if your exemptions are at 0.  Not to mention that you should have deductions for mortgage insurance, real estate taxes etc.


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## Leonard (Feb 18, 2010)

onion said:
			
		

> luv2burnwood said:
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The 4k was what was left over from the 6500 home buyer credit we ended up owing to the state.  Both fed and state were filed M-0  I am having my returns looked over by a local cpa and I think what they will find is that I didn't get any energy credits from either state nor fed.  I can't imagine filing M-0 and actually filing with a dependent on your returns and still be on the short end of the stick at return time, we'll see.  Mostly it burns me because I had no intentions of blowing this money it was going to complete my solar HW.


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## boots5050 (Feb 21, 2010)

Did you put in your own solar water heater?? How much did it cost??
I sell solar water heaters in Connecticut. Here with a family of four you qualify for up to 3200 state rebate as well as 30% from federal


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## btuser (Feb 23, 2010)

I did all this stuff before there were credits.  That pisses me off.


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