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Author: Bob78164 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Energy credit renewal question Date: 12/23/2010 7:43 PM
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My wife and I (we file jointly) placed a new energy-efficient water heater in service in our primary residence in March 2010. The purchase price was roughly $4600, of which $2300 has already been charged to our credit card and $2300 has not.

We also purchased energy-efficient doors for our primary residence, which were placed in service in December 2010. These doors cost approximately $9000. We financed this purchase using same-as-cash financing. When the bank approved us for financing, it issued us two vouchers, payable to the door company, each for half of the cost of the door. We have delivered one voucher to the door company, which has cashed it.

As I understand it, the payments we have already made in 2010 have maxed out the energy-efficiency tax credits available to us for 2010. If we (a) have the water heater company wait until 2011 to charge our credit card, and (b) wait until 2011 to deliver the second voucher to the door company, do we get a tax credit for 2011? As I see it, this breaks down to two questions: (1) Can you get the tax credit for property placed in service in 2010 but not paid for until 2011, and (2) under these circumstances, are any of the payments made in 2011 for tax purposes?

Thanks for any help. --Bob
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