Legal Question in Tax Law in Massachusetts
Hi,
I currently live/work at a 501(c)7 chartered organization (a fraternity). We are considering purchasing a high efficiency water heater system. According to what I've read, this offers up to a $2500 income tax credit. However, we do not pay federal income tax, so this seems like money that is lost.
Is there any way to capitalize on this tax credit? Or is there no incentive to get the HE system?
Cheers,
Mike
1 Answer from Attorneys
Only to the extent that you have income that does not qualify for the tax exemption, which I doubt you have much or any.
The amount involved is not sufficient to make the use of a sophisticated entity to sell the credit to someone else.
It might be feasible to have a donor by the equipment and take the credit and then donate the water heater system, but that would take some research. However that would be the only reasonable cost way to try to make use of the credit.