Re: [RE-wrenches] does the federal grant affect depreciation?
Thanks, Randy. Do you have a reference for the depreciable basis being reduced by half the tax credit? I've emailed the treasury dept. and will report back what I hear from them. Dana Dana Brandt Ecotech Energy Systems, LLC www.ecotechenergy.com d...@ecotechenergy.com 360.510.0433 On Tue, Sep 29, 2009 at 8:39 PM, Randy ra...@positiveenergysolar.comwrote: Dana, Federal depreciation rules establish depreciation or the depreciable basis based on the system cost reduced by half of the tax credit. The federal grant is “in lieu” of the tax credit therefore I am fairly certain that treatment should be the same as taking the tax credit. However, I couldn’t readily find a definitive answer and it was not covered in the SEIA webinar. If you cant get an affirmative response then email the treasury department at 1603questi...@do.treas.gov. Randy Randy Sadewic Positive Energy Office: 505 424-1112 Cell:505 570-0137 *From:* re-wrenches-boun...@lists.re-wrenches.org [mailto: re-wrenches-boun...@lists.re-wrenches.org] *On Behalf Of *Dana Brandt *Sent:* Tuesday, September 29, 2009 5:33 PM *To:* RE-wrenches *Subject:* [RE-wrenches] does the federal grant affect depreciation? Wrenches, I feel like this must have been discussed before, but I can't find it in the archives. If a business takes the 30% federal grant, do they get to depreciate 100% of the system cost, or just the remaining 70%? Thanks, Dana Dana Brandt Ecotech Energy Systems, LLC www.ecotechenergy.com d...@ecotechenergy.com 360.510.0433 ___ List sponsored by Home Power magazine List Address: RE-wrenches@lists.re-wrenches.org Options settings: http://lists.re-wrenches.org/options.cgi/re-wrenches-re-wrenches.org List-Archive: http://lists.re-wrenches.org/pipermail/re-wrenches-re-wrenches.org List rules etiquette: www.re-wrenches.org/etiquette.htm Check out participant bios: www.members.re-wrenches.org ___ List sponsored by Home Power magazine List Address: RE-wrenches@lists.re-wrenches.org Options settings: http://lists.re-wrenches.org/options.cgi/re-wrenches-re-wrenches.org List-Archive: http://lists.re-wrenches.org/pipermail/re-wrenches-re-wrenches.org List rules etiquette: www.re-wrenches.org/etiquette.htm Check out participant bios: www.members.re-wrenches.org
Re: [RE-wrenches] does the federal grant affect depreciation?
Dana, Here is an excerpt from the latest SEIA tax manual that supports the information from Randy: ³1.6.2 Basis ReductionThe owner of solar equipment on which an investment credit is claimed or on which a cash grant is paid by the Treasury can depreciate only 85 percent of the cost. The basis¹ for depreciation must be reduced by half the amount of the investment credit or cash grant.² Best regards, David Brearley, Senior Technical Editor SolarPro magazine NABCEP Certified PV Installer On 9/30/09 2:11 PM, Dana Brandt d...@ecotechenergy.com wrote: Thanks, Randy. Do you have a reference for the depreciable basis being reduced by half the tax credit? I've emailed the treasury dept. and will report back what I hear from them. Dana Dana Brandt Ecotech Energy Systems, LLC www.ecotechenergy.com http://www.ecotechenergy.com d...@ecotechenergy.com 360.510.0433 On Tue, Sep 29, 2009 at 8:39 PM, Randy ra...@positiveenergysolar.com wrote: Dana, Federal depreciation rules establish depreciation or the depreciable basis based on the system cost reduced by half of the tax credit. The federal grant is ³in lieu² of the tax credit therefore I am fairly certain that treatment should be the same as taking the tax credit. However, I couldn¹t readily find a definitive answer and it was not covered in the SEIA webinar. If you cant get an affirmative response then email the treasury department at 1603questi...@do.treas.gov. Randy Randy Sadewic Positive Energy Office: 505 424-1112 Cell: 505 570-0137 From: re-wrenches-boun...@lists.re-wrenches.org [mailto:re-wrenches-boun...@lists.re-wrenches.org] On Behalf Of Dana Brandt Sent: Tuesday, September 29, 2009 5:33 PM To: RE-wrenches Subject: [RE-wrenches] does the federal grant affect depreciation? Wrenches, I feel like this must have been discussed before, but I can't find it in the archives. If a business takes the 30% federal grant, do they get to depreciate 100% of the system cost, or just the remaining 70%? Thanks, Dana Dana Brandt Ecotech Energy Systems, LLC www.ecotechenergy.com http://www.ecotechenergy.com d...@ecotechenergy.com 360.510.0433 ___ ___ List sponsored by Home Power magazine List Address: RE-wrenches@lists.re-wrenches.org Options settings: http://lists.re-wrenches.org/options.cgi/re-wrenches-re-wrenches.org List-Archive: http://lists.re-wrenches.org/pipermail/re-wrenches-re-wrenches.org List rules etiquette: www.re-wrenches.org/etiquette.htm Check out participant bios: www.members.re-wrenches.org
Re: [RE-wrenches] does the federal grant affect depreciation?
Thanks, David! That's exactly what I needed. Dana Dana Brandt Ecotech Energy Systems, LLC www.ecotechenergy.com d...@ecotechenergy.com 360.510.0433 On Wed, Sep 30, 2009 at 12:34 PM, David Brearley david.brear...@solarprofessional.com wrote: Dana, Here is an excerpt from the latest SEIA tax manual that supports the information from Randy: “1.6.2 Basis Reduction—The owner of solar equipment on which an investment credit is claimed or on which a cash grant is paid by the Treasury can depreciate only 85 percent of the cost. The ‘basis’ for depreciation must be reduced by half the amount of the investment credit or cash grant.” Best regards, David Brearley, Senior Technical Editor *SolarPro* magazine NABCEP Certified PV Installer ™ On 9/30/09 2:11 PM, Dana Brandt d...@ecotechenergy.com wrote: Thanks, Randy. Do you have a reference for the depreciable basis being reduced by half the tax credit? I've emailed the treasury dept. and will report back what I hear from them. Dana Dana Brandt Ecotech Energy Systems, LLC www.ecotechenergy.com http://www.ecotechenergy.com d...@ecotechenergy.com 360.510.0433 On Tue, Sep 29, 2009 at 8:39 PM, Randy ra...@positiveenergysolar.com wrote: Dana, Federal depreciation rules establish depreciation or the depreciable basis based on the system cost reduced by half of the tax credit. The federal grant is “in lieu” of the tax credit therefore I am fairly certain that treatment should be the same as taking the tax credit. However, I couldn’t readily find a definitive answer and it was not covered in the SEIA webinar. If you cant get an affirmative response then email the treasury department at 1603questi...@do.treas.gov. Randy Randy Sadewic Positive Energy Office: 505 424-1112 Cell:505 570-0137 *From:* re-wrenches-boun...@lists.re-wrenches.org [ mailto:re-wrenches-boun...@lists.re-wrenches.orgre-wrenches-boun...@lists.re-wrenches.org] *On Behalf Of *Dana Brandt *Sent:* Tuesday, September 29, 2009 5:33 PM *To:* RE-wrenches *Subject:* [RE-wrenches] does the federal grant affect depreciation? Wrenches, I feel like this must have been discussed before, but I can't find it in the archives. If a business takes the 30% federal grant, do they get to depreciate 100% of the system cost, or just the remaining 70%? Thanks, Dana Dana Brandt Ecotech Energy Systems, LLC www.ecotechenergy.com http://www.ecotechenergy.com d...@ecotechenergy.com 360.510.0433 ___ ___ List sponsored by Home Power magazine List Address: RE-wrenches@lists.re-wrenches.org Options settings: http://lists.re-wrenches.org/options.cgi/re-wrenches-re-wrenches.org List-Archive: http://lists.re-wrenches.org/pipermail/re-wrenches-re-wrenches.org List rules etiquette: www.re-wrenches.org/etiquette.htm Check out participant bios: www.members.re-wrenches.org ___ List sponsored by Home Power magazine List Address: RE-wrenches@lists.re-wrenches.org Options settings: http://lists.re-wrenches.org/options.cgi/re-wrenches-re-wrenches.org List-Archive: http://lists.re-wrenches.org/pipermail/re-wrenches-re-wrenches.org List rules etiquette: www.re-wrenches.org/etiquette.htm Check out participant bios: www.members.re-wrenches.org
[RE-wrenches] does the federal grant affect depreciation?
Wrenches, I feel like this must have been discussed before, but I can't find it in the archives. If a business takes the 30% federal grant, do they get to depreciate 100% of the system cost, or just the remaining 70%? Thanks, Dana Dana Brandt Ecotech Energy Systems, LLC www.ecotechenergy.com d...@ecotechenergy.com 360.510.0433 ___ List sponsored by Home Power magazine List Address: RE-wrenches@lists.re-wrenches.org Options settings: http://lists.re-wrenches.org/options.cgi/re-wrenches-re-wrenches.org List-Archive: http://lists.re-wrenches.org/pipermail/re-wrenches-re-wrenches.org List rules etiquette: www.re-wrenches.org/etiquette.htm Check out participant bios: www.members.re-wrenches.org
Re: [RE-wrenches] does the federal grant affect depreciation?
Dana, Federal depreciation rules establish depreciation or the depreciable basis based on the system cost reduced by half of the tax credit. The federal grant is in lieu of the tax credit therefore I am fairly certain that treatment should be the same as taking the tax credit. However, I couldn't readily find a definitive answer and it was not covered in the SEIA webinar. If you cant get an affirmative response then email the treasury department at 1603questi...@do.treas.gov. Randy Randy Sadewic Positive Energy Office: 505 424-1112 Cell:505 570-0137 From: re-wrenches-boun...@lists.re-wrenches.org [mailto:re-wrenches-boun...@lists.re-wrenches.org] On Behalf Of Dana Brandt Sent: Tuesday, September 29, 2009 5:33 PM To: RE-wrenches Subject: [RE-wrenches] does the federal grant affect depreciation? Wrenches, I feel like this must have been discussed before, but I can't find it in the archives. If a business takes the 30% federal grant, do they get to depreciate 100% of the system cost, or just the remaining 70%? Thanks, Dana Dana Brandt Ecotech Energy Systems, LLC www.ecotechenergy.com d...@ecotechenergy.com 360.510.0433 ___ List sponsored by Home Power magazine List Address: RE-wrenches@lists.re-wrenches.org Options settings: http://lists.re-wrenches.org/options.cgi/re-wrenches-re-wrenches.org List-Archive: http://lists.re-wrenches.org/pipermail/re-wrenches-re-wrenches.org List rules etiquette: www.re-wrenches.org/etiquette.htm Check out participant bios: www.members.re-wrenches.org
