How do credits or rebates from states or utilities affect the federal tax incentives?
Fixed federal credits (e.g., $300 for an eligible air conditioner) are not affected by state credits or utility rebates. For federal credits that depend on cost (e.g., upgrades to existing homes and solar energy systems), the federal credit will generally be calculated after deducting the value of utility or state incentives. For example, if upgraded insulation costs $1500 and is eligible for a $300 state credit, the federal credit is calculated on the cost after subtracting the state credit. In this example, the federal credit will be $120, which is 10% of the net cost of $1200 after the state credit is subtracted. For more information please contact your state energy office or local utility.
Related Questions
- Can I Qualify for Federal Tax Credits and Utility Company Rebates by Purchasing a New Dallas Heating and Air Conditioning System?
- How do the federal tax incentives interact with credits or rebates provided by my state or utility?
- How do credits or rebates from states or utilities affect the federal tax incentives?
