Congress Just Did Something Your Customers Will Want to Hear AboutJanuary 6th, 2015 by Casey Flores
In a rare display of bipartisanship, Congress recently pulled together to pass the Tax Increase Prevention Act of 2014 (HR 5771), signed into law by President Obama on December 19. While the bill includes many provisions, door and window installers may want to note one in particular.
Section 25C allows individuals to update the tax credit for a portion of the amount paid on qualified energy efficiency improvements and residential energy property expenditures —specifically, 10 percent of the cost with a $500 limit.
While the credit wasn’t extended beyond 2014, which would help drum up future business, it’s a good idea to let customers know that the credit is now available, says Mark Milanese, owner of Milanese Remodeling in Coatesville, Pa.
Upon learning about the credit, Milanese says he’ll post the news on his blog, newsletter and social media outreaches. “Any time I can communicate something that’s of value, like this is, it’s a good thing, and I will [tell my customers about] it,” he says, though he’s quick to point out that the credit isn’t a spectacular amount.
Milanese has worked with similar tax credits before and says there are things to be aware of before telling customers they can receive a $500 write-off. “When you dive into that section, you’re going to find there are all kinds of limitations,” he says. “It may end up only being $200” after deducting labor costs and other non-qualifying expenses.
Though some praise the bill, others criticize it, saying it doesn’t go far enough and that taxpayers were almost left hanging.
“While this long-awaited legislation generally resolved the uncertainty of whether the extender tax breaks would be available for 2014, this resolution was short-lived as the provisions have already expired again,” says Catherine Murray, tax analyst with Thomson Reuters, a New York-based financial information provider. “Whether they will be temporarily extended again in the future, or addressed in a more substantive way as part of a comprehensive tax reform effort, remains to be seen.”
Read the full text of the bill here.