Factor new tax credits into your planning

October 2005

 

Recently, President Bush signed an energy bill that contains tax incentives you need to be aware of as you do your 2005-2006 tax planning. The provisions of interest to most taxpayers and businesses include the following:

* For 2006 and 2007, a tax credit for making home improvements that will increase energy efficiency, such as adding insulation or energy-conserving doors and windows.

* For 2006 and 2007, a tax credit for installing residential solar water heaters.

* For 2006 through 2010, a tax credit for purchasing an alternative fuel vehicle, such as a hybrid gas/electric car or truck. The current $2,000 deduction for the purchase of a hybrid vehicle is replaced by the credit in 2006.

* For 2006 and 2007, a tax credit for contractors who build energy-efficient homes and for manufacturers of energy-efficient appliances.

If you’re planning to buy a vehicle or to make home improvements, you’ll want to get details on these new credits. Waiting until 2006 to make your purchase may be to your tax advantage. For specifics on the new energy credits and guidance in your situation, give us a call.

Maniar, Miller & Wechsler, LLC
2855 N. University Drive, Suite 600
Coral Springs, FL 33065
Phone: 954-75 CPA-MM (752-7266)

Fax: 954-345-0115
info@cpa-mm.com