Energy Credit

The T – Other energy property Investment Tax Credit can be used as a catchall for various tax credits that you would like to track in Sage Fixed Assets including Electric Vehicle (EV) credits.

The defaults are:

ITC Credit %: 10.00%.

ITC Credit Amount: 10% of the asset Acquisition Value.

Basis Reduction Amount: 50% of the amount calculated for the ITC Credit Amount.

Note: All three of these fields accept manually input amounts.

To calculate a dollar-based credit for an EV asset, for example, follow the steps below with the assumption that you can take the full available $7,500 credit.

1. Select the 3 dots in the Investment Tax Credit field in the Book Information section of Asset Detail.
2. Select ITC Credit: T – Other energy property.
3. In the ITC Credit Amount field enter $7,500.
4. Select the Basis Reduction Amount field and enter the same amount that is in the ITC Credit Amount field ($7,500 in this example since EVs are eligible for 100% basis reduction from the Acquisition Value).
5. Ignore the ITC Credit % value since this is a dollar-based credit.

To calculate a percent-based credit for the Alternative Fuel/EV Charger Credit asset, for example, follow the steps below with the assumption that you qualify for a credit of 6% for depreciable property.

1. Select the 3 dots in the Investment Tax Credit field in the Book Information section of Asset Detail.
2. Select ITC Credit: T – Other energy property.
3. In the ITC Credit % field enter 6.00%.
4. The ITC Credit Amount field automatically calculates based on the ITC Credit %.
5. Select the Basis Reduction Amount field and enter the same amount that is displayed in the ITC Credit Amount field. The credit for this type of asset is eligible for a basis reduction of 100% from the Acquisition Value.