New Energy Efficient Residence & AZ taxes (sales, 2010)

[sierraAZ]

I'm doing my taxes and there is an AZ deduction I'm not completely sure about...

The software's asking

Enter the total amount spent for construction of a new energy efficient residence: (this line makes it sound as if it's a builder's deduction)

Then there's a 2nd question:

Enter the number of newly constructed energy efficient residences you sold or bought during 2008: (this line makes it sound as if the buyer can claim it)

The explanation is muddy, too...

What subtraction can I take for the sale or purchase of my energy efficient residence?

For taxable years beginning from December 31, 2001, through December 31, 2010, Arizona law allows a subtraction for an energy efficient residence. The subtraction is allowed for selling one or more new energy efficient residences located in Arizona. The subtraction is equal to 5% of the sales price excluding commissions, taxes, interest, points, and other brokerage, finance, and escrow charges. The subtraction cannot exceed $5,000 for each new qualifying residence.

I found form 319: http://www.azdor.gov/Forms/2007/319_f.pdf

There is:

Part I Calculation of Current Taxable Year’s Credit for Taxpayer that Built the House or Dwelling Unit

&

Part II Current Taxable Year’s Credit for Purchaser or Transferee of the House or Dwelling Unit

Total allowable credit - from attached copy of written statement provided by the builder of house or dwelling unit

I don't recall seeing such statement. It's not clear if both the builder and the buyer can claim it... Normally if one party claims something the other one cannot.

In other words, does anybody know for sure if the buyer of a new energy-efficient home can claim this deduction? I suppose I can ask the builder tomorrow, but I kind of wanted to get rid of the taxes today.

[sierraAZ]

OK, it's clear now and I'm posting it in case somebody else is interested.

Of course, no good news for the lil' guy... It's a double whammy. First, no builder would give you the deduction they can claim. Second, even considering the remote chance they might do so, the buyer has to prove the home is as energy-efficient as required, which appears to be a PITA...

http://www.revenue.state.az.us/Resea...00700154-I.pdf