Tax return on Solahart systems- Hawaii residents?

[StillHope]

Sorry to make it a different thread,but it's very important part of the Solahart rebate and might be useful for the people who want to install the system in a new house they will move permanently from another state after the construction.
So if at this time I am a CA resident and my general contractor is going to use a HELCO approved installer,am I eligible for the tax rebate on the Solahart and which state?
I will move to Hawaii when the house is done or earlier.The project will take 4-6 months since the house is small.

[mikewj]

I am also currently a CA resident, planning to move as soon as the house is finished. I am installing solar water heating in the HI house. The project qualifies for both Federal and Hawaii tax CREDITS. NOT a rebate, but you can apply the credits respectively to any Federal and Hawaii taxes owed, and can carry forward any excess credit until you use it up.
Hope this helps.

[Carey]

Doesn't HELCO offer the rebate?? tax credits are state & fed government???

[mikewj]

HELCO calls it a rebate, but in actuality it is a direct discount from the total cost of the program. Currently HELCO is discounting $1,000 off the total price. The Federal and State credits are figured on the balance. If the system price quote is $6,000 for example, the tax credits will be calculated on $5,000.

[StillHope]

quote:

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Originally posted by mikewj

I am also currently a CA resident, planning to move as soon as the house is finished. I am installing solar water heating in the HI house. The project qualifies for both Federal and Hawaii tax CREDITS. NOT a rebate, but you can apply the credits respectively to any Federal and Hawaii taxes owed, and can carry forward any excess credit until you use it up.
Hope this helps.

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Thank you so much for the explanation.
So I need to be Hawaii resident next tax season.And if I continue to live in CA and rent my house,I will not get the credit,right?
(That is not my intension,but it might help someone else ).

[StillHope]

I have the information from the Department of Taxation(State of Hawaii)-

"non-resident taxpayers can now claim the credit".

(Quote from instructions form N-334).

[StillHope]

BTW,federal tax credit is set to expire on Dec.31 2008.
I don't know if they are going to extend it.
State credit doesn't have the expiration date so far.

[Liz]

Heads up everyone:

We found out, after the fact, that the tax credits can only be applied if you have an income in Hawaii that will be taxed in Hawaii so that this credit can be applied to that income tax. If you don't work in Hawaii for that year (say like you just moved over, and/or your income is from working in another state) then you don't get the tax credits. :-(

But you still have a solar water heater, so that's something.

aloha, Liz

"The best things in life aren't things."

[StillHope]

Liz,thank you so much!
If you can,please,give some more details..
On that form I quoted it clearly said,that non-Hawaii residents NOW can claim the credit.May be the regulations went later ,after you tried to get the tax credit?
When did you apply?
I'd really appreciate the answer.Thank you in advance.

[Liz]

StillHope~
My understanding is that for the Federal credit anyone can get that as long as they have an income and pay enough taxes to equal more than the credit (it's a *credit* not a *rebate*).

As for the Hawaii tax credit, you need to have an income in Hawaii to apply for an income tax credit - right? At least that was the case 2 years ago. Our income came from Idaho at the time (yes, *another* ex-Idahoan in your midst!) so we couldn't get the tax credit for Hawaii. It sounds like you can live elsewhere now ("non-resident"), but still need to have at least some income from Hawaii to report ("taxpayer")...

I could be wrong, I'm not a CPA, and the tax code can change. :-)

By the way, we did use an approved installer.


aloha, Liz

"The best things in life aren't things."