This new Internal Revenue Code authorizes a credit of up to $7,500 per vehicle for qualifying plug-in electric drive motor vehicles. This notice provides interim guidance, pending the issuance of regulations, on:

 (1) the certification rules for domestic manufacturers and domestic distributors of foreign manufacturers, and

(2) the circumstances when purchasers of qualified plug-in electric drive motor vehicles can rely on the certification in determining whether a credit is allowable with for a vehicle and the amount of the credit for the vehicle.

 See www.irs.gov/businesses/article/0,,id=214841,00.html for a list of manufacturers for vehicles acquired on or before 12/31/09 and complete guidelineson the new credit.

The IRS launched a YouTube video site and an iTunes podcast site to help taxpayers take full advantage of the tax provisions in the 2009 American Recovery and Reinvestment Act. The IRS YouTube channel will debut with seven videos in English and American Sign Language and eight in Spanish, featuring such topics as the $8,000 first-time homebuyer’s credit, the sales or excise tax deduction on new car purchases, and the expanded credits for education and energy conservation. Also, included will be a video on using the IRS Withholding Calculator. People can visit the audio site at iTunes to listen to IRS podcasts about Act’s tax credits, or listen to those same podcasts in English and Spanish at the Multimedia Center on www.irs.gov . News Release IR-2009-76 .

Many clients are interested in the tax benefits associated with residential energy expenditures. Tax credits are available at 30% of the cost, up to $1,500, in 2009 and 2010 (for existing homes only). Here is a brief overview on which home improvements are eligible:

* Credit equals 30% of expenditures, capped at $1,500.

Qualifying improvements:

• Insulation materials
• Exterior windows (including skylights)
• Exterior doors
• Central air conditioners
• Natural gas, propane and oil water heaters or furnaces
• Hot water boilers
• · Electric heat pump water heaters
• Certain metal roofs and stoves
• Advanced main air circulating fans

If you have questions regarding this or other tax related topics, contact Doug Mathey, CPA, MT at (330) 864-6661 or Douglas.Mathey@BCGcompany.com