Tuesday, February 24, 2009

Q: Does the final installed cost qualified HVAC equipment include sales tax?

A: Yes. The tax code language states "amount paid or incurred by the taxpayer for qualified energy efficiency improvements installed during such taxable year" which HARDI and Energy Star interpret as the final cost which would include sales tax. However, sales tax on non-qualifying work performed on that same installation should not be included when determining the credit-eligible amount.

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