How do I receive my tax credit?
Amounts paid or incurred in 2010 will be claimed on your 2010 taxes (filed by April 15, 2011) – use IRS Tax Form 5695 (2009 version) – it will be available late 2011 or early 2012.
Be sure to retain your record of purchase (receipt) and a copy of DecoFire Fire’s Manufacturers Certification Statement for your records.
However, these documents need not be submitted with your tax return.
What if my designer purchases the product on my behalf as part of their services?
You require an itemized record of purchase from your supplier noting the DecoFire Fire model number and price to be eligible for the Tax Credits.
At times, it may be valuable to have your supplier provide you with a separate record of purchase for the DecoFire Fire to ensure documents may be filed accordingly.
Why is Denatured Ethanol or Alcohol considered a “biomass fuel”?
Denatured Ethanol is a plant derived fuel, made from readily available renewable crop resources and as such meets the requirements as a qualifying fuel stipulated in the code.
What if I purchase a second hand or used DecoFire Fire?
No credit will be allowed in that case. The credit only applies to the purchase of new equipment, where the taxpayer is the original user.
I purchased my DecoFire Fire prior to President Obama’s announcement. Am I eligible to receive a tax credit?
Any purchase made and placed in service between 1 January 2009 and 31 December 2010, will qualify.
Where may I view a copy of the applicable code?
Your tax advisor may be in a position to provide you with a copy.
As a developer, are residents purchasing one of my properties that have an installed DecoFire Fire eligible to claim a tax credit?
For residents to be eligible to apply for the tax credit, a record of purchase of the DecoFire Fire is required.
This may be in the form of an itemized statement or in the form of a receipt.
Regardless, a unique record of purchase is required to be supplied from you, the developer, for your customer to qualify. If this is provided, residents will be eligible to apply for the Tax Credits.
What if I buy multiple units or other have other qualifying expenditures?
The applicable credit allows for a maximum credit of 30% up to $1,500 across all purchases of qualifying products.
What does “placed in service” mean?
“Placed in service” is defined by the IRS as when the property is ready and available for use.
I have lost my receipt of purchase. How do I obtain a replacement?
You require a record of purchase to apply for your tax credit. In the event you have misplaced your record, please contact the location where your purchase was made to request a receipt of purchase.
For specific details concerning your unique tax position it is recommended that you consult with your tax advisor.
Details & Conditions
- The DecoFire Fire must be first “placed in service” between January 1, 2009 and December 31, 2010.
- The DecoFire Fire must be installed in a dwelling unit owned and used by the taxpayer as his principal residence in the United States of America.
- The maximum Tax Credit for Nonbusiness Energy Property is $1,500
- For record keeping, receipts of purchase must be saved along with a copy of the Manufacturer Certification Statement.
- Amounts paid or incurred in 2010 will be claimed on your 2010 taxes (filed by April 15, 2011) – use IRS Tax Form 5695 (2009 version) – it will be available late 2009 or early 2010
The credit referred to is provided under the terms of Internal Revenue Code Section 25C(d)(3)(E)