Support *better* legislation

 Rather than subsidizing expensive PV technology, how about supporting
cheaper more efficient solar-thermal-electric systems?  $2/W beats $8/W any
day of the week.


Subject: Re: Action Alert: Support Federal Solar Legislation
Date: Friday, February 16, 2007 12:11



PV manufacturers, installers, and advocates such as Vote Solar work
very hard in favor of tax credits and rebates.  I will go with their
judgment unless presented with a compelling argument to the contrary.

  Great for anybody that lives in a home with a south facing roof.
Screws everyone without, anyone that lives in a condominium, in a
homeowners association, an apartment, a mobile home or a rental home.
We can also eliminate everyone with a limited income.

The tax rebate idea is great. If you have a disposable income to
install the equipment.

Let's look at a real life example. I made 26k last year. I installed
2k in solar at my cabin. My W2 had me taking single, 0 deductions
which left me with only $1000 in a tax shortfall for 2006. Took the
credit. Using that 2k, aka my amazing solar tax credit, I only owe
$500 in taxes. If I hadn't spent the damn 2k on solar, I could have
paid the taxes in cash.

Now the 15 year payoff for the solar is great. Except that the IRS
charges interest for what you can't pay. So my payoff is currently 47
years because I have $30 left out of every paycheck to pay the damn
tax bill that I got the credit for. Since I'm 49 years old (and should
know better but that solar deal sounded so good) I'll only be 96 when
I pay it all off. That and I'm paying an additional $100 a month just
to pay my good old "reduced" United States taxes. That's AFTER taxes.
I hope that I get another tax credit for something I can't afford real
soon. That way I can help my local prison install some solar power
systems to help reduce my sentence once they discover that they can't
get blood from a turnip.

So the moral and lesson for U.S. citizens is that you should examine
the credits that are offered. Often (if not always) it is not a 100%
deduction but a percentage of the outlay. Another example would be the
10k in medical expenses I had last year. I was able to pay out of
pocket 1k which was far less than the 10% to deduct the total (IRS
rules: only if you actually paid over 10%). So my medical was a wash
because IRS rules dictate that you can only take a deduction on your
ACTUAL expenses. Which include your solar installs. If you're paying
payments, you can't take the entire deduction. That's the real lesson.

Not convinced? In 1998, I covered a NASA launch (I was the very first
online journalist invited to NASA). $1,800 in travel expenses. $600 in
online access. $300 in subscriptions. $1,200 dollars in mortgage
interest. $28,000 in income, 0 deductions, claimed single rate. No
kids. Only owed $900.00 that year.

Welcome to the real world, thanks for playing and would you like to
move on to "Double Jeopardy" where the prizes are really big?


Best,

Screwed.
http://www.kitcar.dynip.com