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News
Go to: Economic Stimulus Act offers tax deductions on equipment purchases
Go to: Generac’s “Green” Generators
Go to: FUEL NEWS: LONG TERM STORAGE OF DIESEL
Go to: New Installation Guidelines for Generac Stationary Air-Cooled 7, 10, 13, 16 and 18 kW Generators
**Better Light & Power News**
Updated December 2008
Generators are now Exempt from NYS Sales Tax
-- if they are not titled to a tenant, not towable, not portable --
Save $151 - $411 per Air-Cooled Generator and Switch!
Just fax us a “Contractor Exempt Purchase Certificate” before you get the generator.
- Fax us a “Contractor Exempt Purchase Certificate” for each generator you buy, because you have to put the
installation address on the form each time. There is no such thing as a “blanket certificate”. (Follow the link Below)
“Contractor Exempt Purchase Certificate” #ST120.1
This form is all that we need from you, and we will not charge you sales tax. Send us a new form for each job.
Fax it to our office at 585-424-1190 or 1-800-475-4448.
- You will need to have a “Sales Tax Certificate of Authority” in order to give us a “Contractor Exempt Purchase Certificate”. You probably already have one, and the State wants you to have one anyway, if you are doing any repairs or other taxable work. If you already have this, you do not need another one. (Follow the link below)
“Application to Register for a Sales Tax Certificate of Authority” #DTF-17
- Each time you give us an Exempt form, you then have 90 days to get your customer to give you a “Certificate of Capital Improvement, signed by your customer, to keep in your files. (Follow the link below)
“Certificate of Capital Improvement” #ST-124
- Want to see it to believe it? Here is the link to the full official opinion from the State regarding generator installations being tax exempt:
http://www.tax.state.ny.us/pdf/advisory_opinions/sales/a06_18s.pdf
-- The generator must be a permanent hard-wired addition to the property, not towable or portable.
-- Installing an emergency home generator for a tenant IS taxable, unless
-- the lease indicates that title to improvements, including the generator, is to vest in the landlord;
-- and that the improvements are to become a part of the premises and remain in the premises.
- Instead of the Contractor Exempt Purchase Certificate, you can give us a form good for all of your purchases from us, IF the State allows you to use either of the forms below (see the link for details). Check the box on the form that says “Blanket Certificate” and we will keep it on file.
“Resale Certificate”: http://www.tax.state.ny.us/pdf/1999/fillin/st/st120_699_fill_in.pdf
“Direct Pay Certificate”: http://www.tax.state.ny.us/pdf/1997/st/au298_397.pdf
CLEARANCE SALE -- 16 circuit switch – only $367
ONLY ONE LEFT of the older style 16 circuit switches (model RTSC100A1).
They work fine with the battery charger in the new air-cooled generators.
Add GenReady Panels to boost your next electrical job!
Install a GenReady panel instead of an ordinary main panel, for retrofit or new construction. It will make it much easier for your customer to afford a new generator, because their home wiring is now ready for a standby generator, and they will spend so much less on installation!
Generac's GenReady load center (circuit breaker panel) is a hybrid panel that separates the electrical circuits of your home… those that will be backed-up by a generator, and those that will not.
The Advanced version ($372) has a new type of transfer switch already installed in the panel.
The Basic version ($202) is ready for the transfer switch portion to be installed in it later.
Either gives you a happy customer!
•Accepts up to 40 circuits with the use of tandem breakers
•About the size of a standard 42-space main load center
•Utilizes standard Siemens panel board components
•Compatible with generators rated up to 125 Amps / 30 kW
•Up to three GenReady load centers can be supported with a single generator
GenReady spec sheet: http://www.generac.com/publicPDFs/0175200SBY.pdf
Homeowner Brochure: http://www.generac.com/publicPDFs/0175260SBY.pdf
One-Man Installations of Air-Cooled Generators!
Move the generator from the driveway to the back yard and set it in place – all by yourself – with Generac’s new Transport Cart! Pneumatic tires are kind to your customer’s lawn. Its frame pieces quickly assemble around the generator, and disassemble for the next job. Cost is $467.
25 kW and 30 kW are back
– with the economical 1.6L engine. 120/240V single phase and 120/208V 3ph only. See the price list.
Parts and Maintenance Kits
Call Emergency Power Systems (Kistler) in their new building off Elmgrove Road west of Rochester. They will promptly UPS or you can pick up from their stock. 585-464-6333 Luann or Rich.
Very Big Market for Small Commercial Generators QT22-QT150 kW
Did you know that over 6 million small businesses lost power last year, and over half of them – more than 3 million businesses -- said that they would purchase a generator if it made economic sense to them!
Latest Generac Warranty Information
Link to the Warranty info: http://www.mygenerac.com/News/File/WarrantyEffectiveDatePolicy.pdf
Battery Chargers
The new air-cooled generators require a battery charger to be installed. The battery charger is supplied free of charge and ships with the generator. Install it in the control panel per the directions enclosed. It will always be this way for the whole-house switches, but the new model load center switches come with the battery charger already installed in the switch. Therefore the extra charger is not needed and can be discarded. NOTE: Needs a fifth wire between generator and switch.
Remote Monitoring System
This New Generac monitor option will work only with the new air-cooled models – Coming Soon. Price will be $269.
But there is a non-Generac monitor, the GSV300, which now has 15 data screens, works with all models, ties into your customer’s security system monitoring and is in stock now at $379.
Generator Warning Stickers now in stock at $4 per pair, when added to your generator order. Required on the meter can by NEC 700-8(a) etc., and put one on the main panel.
Prices shown on this newsletter are for checks. Call for credit card prices.
NEW WAREHOUSE – C&M Forwarding, 45 Jet View Drive (off Paul Road Rt. 252A), Rochester, NY 14624. Extended Hours: 7:30 am-8:30 pm M-F and 8:30 am-3:00 pm on Saturday. Free pick-up if we have 6 hours notice. If less than 6 hours we have to add a $50 Expedited Order Fee, so call us the day before. For free Saturday pick-up, call us by 2:00 on Friday (no phone calls on Saturday).
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NEW AIR-COOLED MODELS HAVE 24 improvements inside & out:
- True-Power superior harmonics and sine wave form
- Galvaneel coating process for improved corrosion resistance
- Hard tooled components to minimize weld points
- New louver design for cleaner lines and elimination of external sheared edges
- All weld points moved to enclosure interior for improved corrosion resistance and better appearance
- New contoured profile for improved aesthetics/appearance
- Single point hood release and latch for ease of use
- Improved power output
- New 2-line LCD display on control panel
- Enhanced diagnostics including hour meter
- Battery charger relocated to transfer switch to extend maintenance intervals
- Consolidated wire harnesses to reduce connection points
- One-way fit on unique harness plugs to eliminate connection errors
- Wire connections directly on PC boards to improve reliability
- Externally accessible re-programming port for easy software updates
- Main circuit breaker located on outdoor end panel
- Status light indicator located on outside of enclosure for greater convenience
- Maintenance interval light to alert owner that maintenance is required
- External GFCI outlet
- Plateau honed cylinders now standard on all engines in new line
- Plasma-moly piston ring pack standard on all engines in new line
- Graphite piston inserts standard on all engines in new line
- Optional remote monitor
- New PowerManager LTS load shedding switch
Call 1-800-475-1321 for Pricing and ordering info.
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Economic Stimulus Act offers tax deductions on equipment purchases
Companies in the right situation can enjoy significant tax benefits for buying materials handling equipment this year, but a spike in equipment sales is unlikely.
By Corinne Kator, Associate Editor -- Modern Materials Handling, 4/15/2008
If the shaky economy has you putting the brakes on plans to buy new equipment this year, you may want to put those plans back in motion.
Investing in capital equipment before the end of 2008 could result in significant tax benefits thanks to the Economic Stimulus Act that Congress passed earlier this year. In addition to the individual tax refunds we’ve heard so much about, the stimulus package also includes two less-publicized provisions that offer businesses increased tax deductions on purchases they make before the end of the year.
The details of the two provisions are tricky, but the bottom line, says Michael Cecere, a CPA with the Massachusetts accounting firm Gray, Gray & Gray, is this: “If you’re thinking about making a large expenditure, 2008 is a good year to do it.”
Cecere offers the hypothetical example of a company that buys and installs $500,000 of assets this year and writes off nearly 80% of the purchase at tax time. In another example, a larger company only qualifies to take advantage of one of the two tax benefits but is still able to deduct 57% of the cost of its purchases.
Full article: http://news.cpamerica.org/gray/ftw/article.asp?id=96
Excerpt below: Special depreciation allowance for certain property
In an effort to stimulate business economic activity, Congress has increased the first year expensing allowance (the Section 179 deduction) and has reprised the 50 percent bonus depreciation rules that went into effect after Sept. 11, 2001. The Section 179 deduction is temporarily increased to $250,000.
Importantly, the effective dates of these two changes are not quite the same. The bonus depreciation rules apply to property purchased and placed in service on or after Jan. 1, 2008, while the increase in the Section 179 deduction amount takes place in years beginning on or after Jan. 1, 2008. The difference in wording will not affect businesses using the calendar year, but fiscal-year companies will need to apply the rules carefully.
For example, a business that files its tax returns using a fiscal year ending March 31 can, in its return for the year ending March 31, 2008, claim bonus depreciation on qualifying assets purchased and placed in service between Jan. 1 and March 31, 2008. However, that business can claim the higher Section 179 deduction only for assets placed in service after March 31, 2008 – in its year ending March 31, 2009.
Any qualifying assets the business purchases and places in service between April 1, 2008, and Dec. 31, 2008, will be eligible for bonus depreciation in the company's fiscal year ending March 31, 2009.
The bonus depreciation is in addition to any Section 179 deduction' to which the business may be entitled.
OBSERVATION |
The same item of property may not qualify for both bonus depreciation and the Section 179 deduction. The rules for each are different. |
OBSERVATION |
The Section 179 deduction includes a taxable income limitation, which generally prevents businesses operating at a loss from taking advantage of the deduction. The new bonus depreciation has no such limitation. Therefore, bonus depreciation can increase a net operating loss, which may be carried back to gain a refund of taxes paid in prior years. |
Congress also raised – from $510,000 to $800,000 – the investment limit at which phaseout of the Section 179 expense deduction begins. Since the Section 179 deduction is reduced dollar-for-dollar for qualified asset purchases in excess of the phaseout threshold, the combination of the new Section 179 limits means that businesses that acquire and place in service less than $1,050,000 of qualifying assets will receive some benefit from the Section 179 deduction.
OBSERVATION |
Fiscal year businesses are affected in different ways by the effective dates for the bonus depreciation and Section 179 deduction changes. Bonus depreciation applies to qualifying property placed in service after Dec. 31, 2007. The increase in the Section 179 deduction limits applies to tax years beginning after Dec. 31, 2007. That means a business using a fiscal year ending March 31 will not qualify for the higher Section 179 deduction limits until its tax year ending March 31, 2009. |
For property to qualify for the new bonus depreciation, it must meet all of the following requirements:
The property must either:
- Have an applicable modified accelerated cost recovery system (MACRS) recovery period of 20 years or less
- Be water utility property
- Be computer software not covered by the Section 197 amortization rules
- Be qualified leasehold improvement property
You must be the original user of the property.
You must purchase the property after Dec. 31, 2007, and you must not have had a binding contract to purchase the property that was in effect before Jan. 1, 2008.
You must place the property into service after Dec. 31, 2007 and before Jan. 1, 2009.
OBSERVATION |
Some property may be eligible for the bonus depreciation even if it is placed in service after Dec. 31, 2008. However, only the portion of the tax basis, or cost, of the property that reflects progress payments made before Dec. 31, 2008, will generally be eligible for bonus depreciation. |
Special depreciation limits apply to passenger automobiles used for business purposes. A passenger automobile includes any four-wheeled vehicle manufactured primarily for use on public streets, roads and highways that has an unloaded gross vehicle weight rating of 6,000 pounds or less. Ambulances, hearses, and vehicles used directly in the trade or business of transporting persons or property for hire, such as taxis and limousines, are not considered passenger automobiles, regardless of weight.
Normally, the first-year depreciation deduction for passenger automobiles is limited to $3,060. However, for passenger automobiles qualifying for the new bonus depreciation, the first year limit is increased to $11,060.
Bonus Depreciation Example #1
Mega Corporation uses the calendar year as its tax accounting year. During July 2008, Mega acquires and places in service $1,200,000 of assets that qualify for bonus depreciation. The assets have a seven-year MACRS recovery period.
Because of the amount of its new assets, Mega does not qualify for the Section 179 deduction. However, Mega's depreciation deduction for 2008 is more than $685,000, calculated as follows:
|
New assets |
Tax deduction |
Cost |
$1,200,000 |
|
50% bonus depreciation |
600,000 |
600,000 |
Cost subject to MACRS |
600,000 |
|
2008 MACRS depreciation |
85,740 |
85,740 |
Total 2008 deductions |
|
$685,740 |
Percentage of cost deducted in 2008 |
|
57.1% |
Bonus Depreciation Example #2
Mini Corporation uses the calendar year as its tax accounting year. During July 2008, Mini acquires and places in service $500,000 of assets that qualify for bonus depreciation. The assets have a seven-year MACRS recovery period.
Mini's depreciation deduction for 2008 is over $390,000, calculated as follows:
|
New assets |
Tax deduction |
Cost |
$500,000 |
|
Section 179 expense amount |
250,000 |
250,000 |
Depreciable cost |
250,000 |
|
50% bonus depreciation |
125,000 |
125,000 |
Cost subject to MACRS |
$125,000 |
|
2008 MACRS depreciation |
17,863 |
17,863 |
Total 2008 deductions |
|
$392,863 |
Percentage of cost deducted in 2008 |
|
78.6% |
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Generac’s “Green” Generators |
Our Natural Gas and Propane (NG/P) generators are “green” or environmentally friendly in comparison with the pollution risks of Diesel generators. Generac manufactures Diesel generators also, because in many cases they are necessary, and the potential problems of Diesel can be avoided or managed by proper planning with the following information. |
Air Pollution
Diesel engines emit far more air pollutants than NG/P (Natural Gas/Propane) engines. The trucks that deliver diesel fuel cause additional pollution.
- NG/P burns with a nearly perfect combustion.
|
Soil Pollution
Diesel spills can trigger a HazMat Hazardous Material cleanup, under US EPA requirements. Generator fuel tanks must be double-wall to receive UL Listing. On-site fuel storage must be in double-wall tanks.
- NG/P fuel is a gas, so it does not spill or cause a HazMat cleanup.
|
Odor Pollution
Diesel fuel emits an unpleasant odor.
- NG/P is so odorless that a scent has been added to make it easier to detect a leak or lack of combustion.
|
Noise Pollution
Diesel engine technology is usually somewhat loud to very loud in terms of noise and vibration and harshness.
- NG/P engines are spark-ignited, so they are quieter.
- Also, Generac’s Quiet Test feature is only available for NG/P, so the Quiet Test NG/P generators are much quieter.
|
Chemical Pollution
Diesel fuel itself requires the addition of chemicals – metal deactivators, fungicides, biocides, and anti-oxidants -- to slow its deterioration over time. These may be poisonous/hazardous. Otherwise, diesel fuel may not be useable after a few months, or a year with optimum conditions. Filters acquire toxic substances and must be cleaned or disposed of carefully.
- NG/P is stable and does not deteriorate.
|
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Following is a report from BP British Petroleum Technical Services on how to keep diesel fuel useable. (This happens to be from their Australian company, so phone numbers etc. are for Australia.) |
FUEL NEWS: LONG TERM STORAGE OF DIESEL Issued : February 7, 2002 ADF1402 Supersedes : February 14, 2000 Page 1 of 3 BP Australia Limited A.C.N. 004 085 616 Marketing Technical Services STORAGE LIFE
Under normal storage conditions diesel fuel can be expected to stay in a useable condition for:
• 12 months or longer at an ambient of 20ºC.
• 6-12 months at an ambient temperature higher than 30ºC. |
As diesel gets older a fine sediment and gum forms in the diesel brought about by the reaction of diesel components with oxygen from the air. The fine sediment and gum will block fuel filters, leading to fuel starvation and the engine stopping. Frequent filter changes are then required to keep the engine going. The gums and sediments do not burn in the engine very well and can lead to carbon and soot deposits on injectors and other combustion surfaces.
The expected life of a diesel fuel is indicated by the oxidation stability test ASTM D2276. The test measures how much gum and sediment will be deposited after keeping the fuel at 120°C in the presence of oxygen for 16 hours. It roughly corresponds to one year storage at 25°C. A result of less than 20mg/L of sediment and gum after the test is considered acceptable for normal diesel. |
ACCELERATED AGEING
The ageing process can be accelerated by the following conditions:-
- Contact with zinc, copper or metal alloys containing them. These metals will quickly react with diesel fuel to form unstable compounds.
- The presence of water. Water allows the growth of fungus and bacteria, these produce natural by-products such as organic acids which make the fuel unstable.
- Exposure to high temperatures.
- Exposure to dust and dirt which contain trace elements that can destabilise the fuel, such as copper and zinc.
- Fuel composition. Some components in diesel fuel naturally age quickly.
|
PROLONGING THE STORAGE LIFE
Prolonging the storage life is achieved by removing or controlling the conditions described in the previous section. Important measures to take are as follows: Issued : February 7, 2002 ADF1402 Supersedes : February 14, 2000 Page 2 of 3 BP Australia Limited A.C.N. 004 085 616 Marketing Technical Services
- Ensure that the fuel is not in contact with any surfaces containing zinc or copper or compounds containing those metals (eg. brass). If those metals are present then a metal deactivator additive may help. Establish a regular fuel maintenance program to ensure that water and dirt is removed from storage tanks. This will also remove any chance for fungus to grow.
- Water should be drained from the storage tanks weekly. The frequency can be extended if the tank shows no tendency to collect water but should be done at least monthly. • Tanks should be kept full to reduce the space for water to condense, maintaining tanks half full increases the water build up and promotes corrosion in the top half of the tank. Most water will come from condensation as the tank breathes, the rate at which water collects will depend on local climate and will be higher in hot humid coastal areas.
- Tanks should have a well defined low point where water will collect and can be drained. For example, cone down bottoms.
- Establish a system for filtering the contents of the main storage tank through a recirculating filter system. This can be made automatic and will reduce the potential for problems by removing sediment and gums. The filters should be checked and changed at regular intervals. When the filter change interval reaches a certain frequency then the fuel should be changed over.
- Tanks should be emptied and cleaned at least once every 10 years, or more frequently if there is a major contamination. • Ensure that the fuel supplied conforms to a recognised specification, in Australia that would be AS3570, and ensure the fuel matches the winter cloud point for the area to avoid filter blocking by wax drop out in cold weather. .
- Always purchase fuel to replenish stocks in the winter season April - August. This will ensure that the fuel will not cause wax problems whatever season it is used.
- Obtain assurances from the supplier that all components are fully refined to promote stability.
- Establish a monitoring program whereby samples are taken at regular intervals to monitor the condition of the fuel. The samples can be examined at the site visually for evidence of haziness, sediment, darkening or sent to a laboratory for testing.
- Regularly turn the fuel over. If possible, plan the fuel usage so that it will all be used within 1-5 years and replaced with fresh fuel.
|
ADDITIVES TO IMPROVE STORAGE LIFE
The following additives can improve fuel storage life: Issued : February 7, 2002 ADF1402 Supersedes : February 14, 2000 Page 3 of 3 BP Australia Limited A.C.N. 004 085 616 Marketing Technical Services
- Metal deactivators. These work by stopping copper, zinc and other reactive metals from reacting with the fuel.
- Fungicides/Biocides. These work by stopping fungus and bacteria from growing in the fuel and so prolong the life of the fuel. They are only effective on fungus and bacteria and will not stop other oxidation reactions from taking place. They are normally active at the water fuel interface where the fungus and bacteria grow. If fungus is present then a kill dose is required. Otherwise a maintenance dose is used to stop fungus growing. The disadvantages of biocides are:
- handling and mixing is hazardous because they are poisons
- for a kill dose, killing the fungus can lead to a build up of dead matter which will block filters and also cause the fuel to oxidise.
- ideally, the fungus should be killed and then the tank emptied and drained out
- maintenance doses are effective but no more so than regular water draining.
- disposal of water bottoms requires special handling with due regard to the environment.
- Anti-Oxidants. These work by stopping the oxidation processes from taking place. They prevent the fuel oxidising and reduce the formation of sediment and gum.
- Fuel Stability Foam. FuelKleenik is a stability foam which is suspended in the diesel fuel in the tank. It has been developed and tested by Department of Defence and is claimed to keep the fuel stable for up to 10 years. The disadvantages are:
- it does not work where fungus and water are present which is why it is suspended in the fuel.
- its size is 2100mm x 200mm x 200mm so it has to be dropped in through a hatch.
After 15 years it has to be disposed of to landfill.
FuelKleenik is available from a company called FuelTreat ph 1800 034442 . |
| For further information, please call the |
BP Lubricants and Fuels Technical Helpline
1800 033 558 - freecall |
| or visit www.bp.com.au/fuelnews |
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New Installation Guidelines for Generac Stationary Air-Cooled
7, 10, 13, 16 and 18 kW Generators
Generac has reduced their required clearance from the house to as little as 18 inches, and under certain circumstances will allow the generator to be installed under an overhang. For more information go to: http://www.mygenerac.com/News/File/0G6108AircooledOffset72607.pdf
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