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passed through to petitioner would be reported on a schedule K-1;
(5) the HEH trustees would pass through to petitioner State tax
credits of $1,750 and Federal tax credits of $575; and (6)
petitioner is liable for all energy payments regardless of
whether any tax credits are passed through to him. Petitioner
received a beneficiary certificate dated December 31, 1996, which
stated that Federal energy tax credits could be allocated to him
at the discretion of the trustees of HEH.
On the day petitioner entered into the SEP agreement,
petitioner and HEH jointly applied for a copayment from Hawaiian
Electric Company, Inc. (HELCO), the local public electric
provider. HELCO offered the $800 rebate under a program intended
to promote the use of solar energy for heating water. HELCO paid
HEH $800 after April 4, 1997, when a Mercury Solar representative
certified that Mercury Solar had installed the solar heating
system in petitioners’ home in accordance with the HELCO rebate
program specifications.
Around the time petitioner and HEH entered into the SEP
agreement, HEH agreed to pay Mercury Solar $6,125 to install the
solar system on petitioners’ roof. HEH agreed to pay a $4,625
downpayment less an $800 electric rebate when work was started,
and $1,500 when work was finished.
Shortly after petitioner and HEH entered into the SEP
agreement, petitioner signed an Option to Extend Term/Option to
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Last modified: May 25, 2011