A: The original 2006-2007 tax credits were limited by the Alternative Minimum Tax, but the American Recovery and Reinvestment Act of 2009 lifted that limitation for these expanded residential energy efficiency credits for 2009. This tax credit claimed in 2010, however, is still limited by the AMT unless Congress amends the credit again.
The geothermal, solar, and wind upcapped tax credits are also not limited by the AMT through 2016. When these credits are not limited by the AMT, the taxpayer's total tax credit limit is determined by the sum of the taxpayer's tax liability PLUS the AMT.
Tuesday, March 24, 2009
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I din't understand what you mean when you say that the energy tax credit is limited in 2010 by the AMT. Does it mean that if an individual pays AMT, they can't take advantage of the energy credit ?
ReplyDeleteUnless Congress passes another AMT patch amending this credit, the tax credits will not be eligible for anyone who pays the AMT on their 2010 return.
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