I now believe the intent was to prevent two incentives to be provided for the same work. If so, then a taxpayer took a 25C credit in a prior year (or even 2010) should be eligible for a Home Star rebate as long as it’s not for the same product or work. However, the language at Sect 9(a)(2) (“shall reduce any credit allowed under 25C”) suggests that the concern may have been with overall incentive limits for a given home or taxpayer, rather than double dipping pe se.

Hmm… This requires some thought. She seems to be implying that someone who took a Section 25C last year, I cannot take advantage of Gold Star’s higher incentive levels? And what about folks who took a 25C credit in 2008?

At a minimum, the instant rebate form will need to include a question asking the customer if they took a 25C rebate in a previous tax year, and have them sign off that they won’t take one in current or future years.

Hopefully the final draft will include words that would *reduce* the HS rebate by a past 25C deduction rather than preclude a rebate, and will be clear as to how far back that would apply.

In particular, let’s say a homeowner receives a $1500 tax credit under 25C in 2009 for an HVAC changeout. Then in 2011, that same homeowner, same home, wants to do some other energy improvements under Gold Star. Would the eligible rebate under Gold Star be reduced by the 2009 Section 25C tax credit? I suspect this was the intent, but the Act doesn’t say that, and you obviously can’t reduce a tax credit that was taken in a previous tax year!

Note: If a 25C tax credit is taken in 2010, even if the work pre-dates the Home Star Act, it seems clear that the wording of the Home Star Act would reduce or eliminate the Section 25C credit if Home Star improvements were also conducted in 2010.

Less than 2 million dollars isn’t going to go very far.