Tom: Energy Credit

[Missani]

Hi, Tom! I'm the "idiot of the class" so to speak, and I'm finally getting a handle on this tax stuff for the first time. (And just in time, I know...)

Anyway, I finally got your books, and I was reading about the energy tax credit. In 2010, we purchased 2 energy efficient eggress windows. They are located in a room that is a 100% business use room. (We finished our basement and the child care is located almost entirely down there. We do not use the room for any other purpose, and my own children do not play down there during non-daycare hours.) Do I calculate 100% of this credit because it's in a 100% use room and required for child care? Or do I use my overall t/s percentage for my entire house because it is part of my house? I know the book says to use overall t/s, but I was wondering if it made a difference that it's in a "child care only" room.

Thanks!

[Michael]

You might find some help from a previous Tom Copeland thread regarding the energy tax credit:

https://www.daycare.com/forum/showthread.php?t=26402

[TomCopeland]

Energy Credit

I did a little research on this. Since your energy improvement is in a room that is used 100% for your business you are not subject to the limitation for family child care providers. So, multiply the cost of the improvement by 30% to determine your energy tax credit (maximum credit of $1,500).