Tax credit for materials - Contractor Talk - Professional Construction and Remodeling Forum

MEL · 02-05-2009, 03:28 PM

How do you document the material cost so that the customer and claim a tax credit?

From what I understand the current tax credit is for 10% of material cost. That doesn't seem like much to me.

Do you give a breakdown of labor and materials in your proposal?

Philly Dude · 02-08-2009, 12:11 AM

I believe it is a percentage of the total cost of the job. Also the percentage is being raised to 30% in the new "stimulus" bill.

Century Man · 02-08-2009, 07:59 AM

Go to energystar(dot)gov for more info.

Q: How much money will I receive for installing windows, doors, and/or skylights?

A: By installing eligible windows and skylights, you may receive a tax credit of 10 percent of the cost up to $200. Exterior doors qualify for a tax credit of 10 percent of the cost up to $500. Installation costs are not included. The maximum amount of homeowner credit for all improvements combined is $500 during the three-year period (2006, 2007, and 2009) of the tax credit.

MEL · 02-11-2009, 09:19 AM

Quote:

Originally Posted by Philly Dude

I believe it is a percentage of the total cost of the job. Also the percentage is being raised to 30% in the new "stimulus" bill.

From what I read on the government website the credit is a % of the material cost.

What is that based on, your cost or what you charge for it after markup?

1mancrew · 02-11-2009, 10:14 AM

Since it is the HO tax return you are talking about....it will be their cost = your cost + markup. It goes without saying to not give them a break down of their price.