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Tag Archive for energy tax credits

Utility Energy Savings State By State – Tax Cuts And Jobs Act

Tax Adminsitration - Energy Utility

One of the biggest benefits of the Tax Cuts and Jobs Act is the savings to customers of utility companies. According to research conducted by Americans for Tax Reform these are the rate savings for utilities this year. This is a great reminder we have savings to be thankful for this year.

Arizona Public Service (Phoenix, Arizona) 

The utility requested a $119 million bill reduction for customers due to tax reform.  APS has requested the Arizona Corporation Commission approve a $119 million bill reduction for customers, based on federal corporate tax cuts, effective February 1, 2018.

If approved, the $119 million decrease will offset the $95 million revenue increase that resulted from APS’s last rate review. The savings of $0.004258/kWh will be passed directly to customers through the Tax Expense Adjustor Mechanism (TEAM), a new adjustor mechanism that was included in the company’s rate review, and customer savings will vary with actual energy usage. APS customers would receive the credit on their monthly bill. – Jan. 9, 2018 Arizona Public Service press release

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Budget Act of 2018 (BBA) Extended Credits – Residential Energy Credits – Form 5695

IRS - Residential Energy Tax Credits

Budget Act of 2018 (BBA) Extended Credits 

The BBA reinstated the nonbusiness energy property credit for 2017, and it reinstated the residential energy efficient property credit for qualified small wind energy property costs, qualified geothermal heat pump property costs, and qualified fuel cell property costs to the end of 2021.

You may claim these credits on your 2017 tax return if you otherwise meet the criteria. If you have already filed your return, you will need to file an amended return (Form 1040X) to claim these credits.

Purpose of Form

Use Form 5695 to figure and take your residential energy credits. The residential energy credits are:

  • The residential energy efficient property credit, and
  • The nonbusiness energy property credit.

Also use Form 5695 to take any residential energy efficient property credit carryforward from 2016 or to carry the unused portion of the credit to 2018.

Who Can Take The Credits

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The Service Announces Tax Season Kick-Off Date

The Internal Revenue Service (hereinafter the “Service”) announced that it will commence accepting tax returns electronically filed on January 20th of 2015. Hard copy tax returns will also be accepted and processed starting on this date as well.

The Service’s decision follows the passage of the tax extenders package into law on December 19, 2014 which retroactively reinstated over 50 tax incentives that had previously expired on December 31, 2013.  “We have reviewed the late tax law changes and determined there was nothing preventing us from continuing our updating and testing of our systems,” said IRS Commissioner John Koskinen in a prepared statement. “Our employees will continue an aggressive schedule of testing and preparation of our systems during the next month to complete the final stages needed for the 2015 tax season.

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