How would solar federal tax credits benefit the owner of a S corp?
How would solar federal tax credits benefit the owner of a S corp?
A business that puts in a solar energy system is entitled to a 30% federal investment tax credit. I am not sure if or how this could benefit owners of an S Corp.
I am also wondering the same about C corps and LLC's?
I was told that solar tax credits would have no benefit for S corps and the like because they typically do not pay any corp income tax. I am not sure if this is true.
Thanks for any help with this.
Answers:
Chosen Answer
Bob F: This credit would benefit the owners of an S corp on their personal returns as their share of the credit would be passed to them on the Schedule K-1 that they would receive from the S corp. In the case of a C corp, it would be a credit against their tax liability just like any credit. As far as an LLC, the question doesn't make sense since the term LLC is an adjective describing the company - it is not a form of business in itself. In other words, and LLC could be a sole propriatorship, a partnership, an S Corp, or even a C Corp. In a nutshell, this credit, like all credits, would benefit whoever pays the taxes of the business - the C corp itself, or the owner(s) or the sole proprietorship or partnership or S corp.
2008-04-29 17:36:07
Bob F: This credit would benefit the owners of an S corp on their personal returns as their share of the credit would be passed to them on the Schedule K-1 that they would receive from the S corp. In the case of a C corp, it would be a credit against their tax liability just like any credit. As far as an LLC, the question doesn't make sense since the term LLC is an adjective describing the company - it is not a form of business in itself. In other words, and LLC could be a sole propriatorship, a partnership, an S Corp, or even a C Corp. In a nutshell, this credit, like all credits, would benefit whoever pays the taxes of the business - the C corp itself, or the owner(s) or the sole proprietorship or partnership or S corp.
2008-04-29 17:36:07