Saturday, February 12, 2011

Tax Credit facts for 2011. Not so grand!

Well here we are in 2011. I can't believe that it's already February.  The Federal tax credits for this year consist of 30% of the parts cost only and not the labor with a cap of $500.00.  Last year the cap was $1500.00.  Now let me qualify that if you have already claimed a tax credit in previous years this $500.00 dollars only applies to the amount left from previous years. So if you have taken $1200.00 of the tax credit you would only be eligible for $300.00 in this year. If you have taken $1500.00 in previous years you have $0.00 eligible for the tax credit this year.  It, as you can see, is a very poor incentive program.  These kinds of programs work to stimulate purchases and that is the type of stimulation this economy needs.  On the other hand I don't think that people that owe $0.00 in tax and pay nothing should be allowed to be paid from our Federal treasury to buy something.  This is where I find fault.  As long as people are being allowed to lessen their tax burden, I think that is always a good plan since I think we all pay way too much in taxes anyway.  I got just a little off track there with the opinions but I hope these things clerify the Federal tax credit guidlines for this year.