Solar Energy Tax Liberation and Residual Income Program Benefits


I. Personal Tax Savings & Residual Income Benefits

Earn Residual, Residual Income for Decades with NO Effort on Your Part! Ownership of one or more alternate energy systems (solar units) represents an ownership interest in commercial revenue generating solar power facilities, which also functions as a legal tax reduction strategy. Purchased alternate energy systems will be placed in service during the year of purchase and integrated into a solar power facility located in the desert southwest. Each purchaser receives contracts that specify a Target Production Rate of 600 peak watts of energy per SPU (Warranty Production Rate is 570 peak watts) with an adjustment allowance if there's higher than normal cloud cover during the period. Residual income per system is $150 per year See FAQ #2 for a detailed analysis and discussion on the residual, residual income. Income payments are expected to commence in early 2011 as soon as the first solar thermal power plant is installed and generating revenue. As of October, 2010 21 solar towers have already been installed and IAS has contracted with a manufacturing plant in Utah to commence mass production on the patented hydraulic dual-axis tracking systems which will be installed on each completed tower.  Many more fully operational towers can now be manufactured and installed in the coming months. Thousands of acres have been acquired in the local area and are available to build these towers on and transmission lines to the nearby IPP power plant that serves four western states can be quickly installed. There is no foreseeable limit in the long-term demand for power, particularly inexpensive power from renewable sources. This unlimited demand should help to support continuation of a profitable income stream from your purchased alternate energy systems for decades. The U. S. Energy Administration projected that U.S. electricity consumption would increase by 51% between 2002 and 2025.

Virtually Guaranteed Profits for Everyone Right from the Start! Every purchaser of alternate energy systems should receive back from the IRS measurably more money than they deposited (Deposit = $1,050 per system), ranging from 122% to 154% of all deposits paid, and these returns represent just the tax savings, NOT the residual income benefits! According to the distributor contracts, YOUR repayments (installments) of $65 per year commence only after the solar thermal power plant has been installed and generating revenue for 5 years. These annual $65 repayments per system will extend for exactly 30 years, interest-free, to cover the remaining $1,950 due on each SPU (or $60 installments to cover $1,800 due if you selected the monthly finance option). Therefore, the $150 annual income payments per system should easily cover the $65 installments, with profit left over every year, and the first 5 years of guaranteed income payments represent pure profit! The distributor contracts include a 5 year warranty which state that if alternate energy systems generate less than 5 X 570 peak watts Warranty Production Rate over the first 5 years after installation and startup of the solar thermal power plant (subject to possible adjustment allowance due to higher than normal cloud cover), the purchaser has the right to return their systems back to the company and this would terminate all further obligation to pay the $65 annual installments. Furthermore, in the unlikely event that you ultimately return your systems back to the company in about 6 years, your CPA would probably not recommend re-filing tax returns that are more than 3 years old (the IRS statute of limitations for auditing past tax returns is 3 years, except in the case of tax fraud), so you would likely be able to retain the tax benefits which paid for 100% or more of your initial deposits, although the forgiveness of the debt may represent a taxable event. This is about as close as you can get to a risk-free opportunity! 

Stop Paying Federal Taxes with 30% IRS Tax Credits ($900 tax credit per system). These 30% IRS tax credits are so big that they alone, without factoring in any other benefits, cover 86% of the up front cost of purchasing each alternate energy system. Cost of entry is effectively eliminated since the IRS actually pays back measurably more than the initial entry cost when also factoring in the depreciation deductions. The IRS tax credits are very exciting because they can be used to offset up to 100% of your AMT, if applicable, or offset up to 100% of your tax liability, so you should receive a dollar for dollar $900 reduction in your tax liability per system for the tax year(s) you purchased alternate energy systems. Buy 10 systems, for example, and you should be eligible to reduce your tax liability by $9,000! By consulting with your CPA, you could purchase the optimal number of alternate energy systems each year to eliminate or dramatically reduce your federal tax withholding or quarterly estimated tax payments until the end of 2016! If you purchase more systems than you can take credits for, you can go back one year or carry forward up to 20 years any unused credits! Some may also receive lucrative state tax credits! Check with your CPA to see if your state offers such credits. If your state does not offer these credits yet, keep checking back with them because there's a good chance your state will be offering these credits soon. As stock market analysts say, "The trend is your friend", and energy industry insiders predict an inexorable trend of increasing federal and state incentives to continue promoting the expansion of renewable energy in the foreseeable future. 

BIG Depreciation Tax Deductions and Minimal Risk of Loss. The tax basis for each alternate energy system is $2,550. This represents the ultimate cost per system of $3,000 less one-half the tax credit of $900. $3,000 - $450 = $2,550. You can deduct specified percentages of the $2,550 each year based on the Double Declining Balance accounting method, and in 2010 a bonus 50% depreciation is available so you can take more of your depreciation deductions right away, and therefore recoup your out of pocket cost that much faster. And you can go back one year and carry forward up to 20 years unused deductions, so you can decide to use them when you can benefit from them the most. Your resulting tax savings from depreciation deductions would be $714 (based on 28% marginal tax rate) or $383 (based on 15% marginal tax rate) per system. For example, if your marginal tax rate is 28% and you purchase 30 systems, your ultimate dollar tax savings from the depreciation deductions would be $21,420 (based on $76,500 in depreciation deductions), combined with the $27,000 in tax credits you would have received, as well as the $22,500 in total projected income for the first 5 years alone! That's about $70,920 in total funds generated from an initial $31,500 cash outlay, in about 6 years, representing a 14.5% annual return over the first 6 years!   Let's assume now that you plan to eliminate most of your total tax liability and that your effective tax rate is only 10% (effective tax rate = final net taxes paid / total net annual income) after factoring in all your existing tax deductions.  In the above example, the only number that would change would be your tax savings from depreciation deductions. You would still get $76,500 in depreciation deductions, but your net tax savings from those deductions would be $7,650 instead of $21,420.  You would add to that the $27,000 in tax credits and the $22,500 in income generated from your units for a total return of $57,150 in about 6 years on a cash outlay of $31,500.  That's equivalent to an average annual return of 10.4% on your money! So, even using a 10% effective tax rate, you could still  generate a double digit return on your money over the next 6 years, with minimal downside risk!  Just try to get that type of deal in the financial markets or in the real estate markets.  We talked about minimal downside risk, so what is the downside?  Well, the only part of this not guaranteed by the U.S. federal government is the income on the units. Let's say IAUS and RaPower3 bite the dust over the next few years and we end up receiving no notable income, so we'll assume absolute worst case and totally remove the income from our calculations . In the above example, you would still have $27,000 in federal tax credits and $7,650 in depreciation credits for total tax savings of $34,650 on a cash outlay of $31,500.  That's a 6-year average annual return of only 1.6%, but you still made a positive return comparable to today's money market funds, AND YOU DIDN'T LOSE ANY MONEY!   By comparison, how many people have LOST MONEY in the real estate and financial markets over the past 6 years?   And keep in mind that the only way you have to pay the $65 installments per unit each year to RaPower3 is if you've been receiving significant annual income payments on each of your units for 5 consecutive years!  And we've already discussed that there is a 3-year statute of limitations on the filing of federal tax returns, so you should not need to re-file any returns from more than 3 years ago.            

10.4% to 14.5% Annual Return on All Funds Deposited for a Period of 6 Years. This is the projected annual rate of return on each $1,050 deposited, depending on the applicable tax rate. The higher the applicable tax rate the higher the annual return. This range of returns assumes an applicable tax rate range between 10% and 28%.  By applicable tax rate, we simply mean the tax rate that would apply to your alternate energy system purchase transaction. 

After consulting with your CPA, you may be in a position to file federal tax exempt status, decrease or STOP your federal tax withholding with your employer, or reduce or STOP your estimated quarterly federal tax payments, depending primarily on the total number of alternate energy systems you purchase each year, as well as other factors. Some members purchase one or more systems each month, particularly if quarterly taxes are paid. 

We strongly recommend that you consult with your CPA:

1. To determine the proper number of alternate energy systems you need to purchase to optimize your tax savings each year, and 

2. Before you initiate any changes involving your federal or state tax withholding.

However, if you do not current have a CPA, or if you're interested in a guideline for how many systems you should consider purchasing each year, we provide this information in FAQ #5. 

II. Wealth-Building Network Marketing Benefits

Renewable Energy is HOT!: Reducing America's dependence on foreign oil and fossil fuels, protecting the environment, and preserving diminishing water resources are causes that many citizens are passionate about. Reducing or eliminating federal income taxes while simultaneously achieving life-changing wealth also powerfully appeals to a majority of the American population. This is a new, ground floor network marketing opportunity that literally sells itself! Once individuals are fully educated on the program (this website effectively accomplishes that, and you'll use this website as a tool for building your network when you activate your optional 7 Figure Legacy membership), they are typically anxious to enroll and excited to tell others about the opportunity! 

Lucrative 6-Tier Commissions - You’ll earn 5% to 10% commissions on all the $1,050 or $1,200 deposits for your Tier 1 and 5% commissions on all the residual income checks earned by your Tier 1, and 1% commissions on both deposits and residual income checks for your downline (tiers 2 through 6). If, for example, you refer this program to 75 people, who purchase at least one alternate energy system, and if the members of your completed 6-tier network sponsor and retain and average of 3 other members each, you would earn 5% on all deposits (10% in months with more than 8 units purchased from your Tier 1) paid by your 75 tier 1 members each year until 2016 and 5% on all the residual income checks earned by your 75 tier 1 members for decades. Based on this example, you would also earn 1% on all deposits until 2016 and 1% on all residual income checks for decades for 27,225 members in your downline (tiers 2 through 6). Remember that most members will purchase several systems each year until 2016! How’s that for a wealth-building opportunity! If you’d like to run many different simulations, (click here) Net Profit Simulator and follow the instructions for the lower table (Network Marketing Income) in the simulator. The simulator assumes that all network members throughout your completed 6-tier network will sponsor and retain just 2 other members each, on average. If your network does better, and averages 3 members sponsored and retained each, the resulting wealth accumulation numbers for YOU would be so large it would be impossible to believe! This is one reason the simulator uses the more conservative "Power of 2" in its simulations.  To make a conversion from Power of 2 to Power of 3 using the lower simulator, simply multiply your Power of 2 tier 1 number by 5.85 and input the resulting number in the lower simulator.  

Power of 2 and Power of 3: If your 6 Tiers are completed and each member sponsors and retains 2 other people, on average (Power of 2), you would only need 160 in your tier 1 to be guaranteed over 10,000 members in your personal 6-tier network. But, if your network does better and achieves Power of 3, you would be guaranteed 10,000 members in your personal 6-tier network for every 28 individuals you personally sponsor in your Tier 1! 

Virtually NO Attrition in YOUR Network! If everyone is making profits every year from residual income payments and everyone is experiencing dramatic reductions in their federal income taxes, why would anyone drop out? But you may have the contractual right (if 5 year energy production falls below the 5 year warranty production rate) to terminate your participation in the program by returning your systems back to the company up to 5 years and 60 days after the solar thermal power plant starts generating revenue from your alternate energy systems. In other words, after you’ve been receiving income payments from your systems for 5 years, you could still possibly have the option of terminating your participation in the program before you begin to make the $65 annual installment payments per system, but if you’re consistently earning measurably more than $65 in annual income, you would not want to terminate your program participation. Furthermore, since most members will be advised by their CPA's, it is unlikely CPA's would recommend their clients to return their systems. This minimal expected attrition is one of the most significant benefits that truly differentiate us from any other network marketing opportunity. While most network marketing companies experience about 80% attrition every 3 years, just imagine how much easier it would be to dramatically expand your personal network if virtually everyone remains active. The expected very low attrition is unheard of in network marketing and will likely help fuel unparalleled, exponential network growth opportunities for most members, and this is the key for extreme wealth building!

No product inventory, delivery, shipping, or installation: Since the alternate energy systems are not designed for residential use, but instead for commercial utility use, you don't have to worry about taking delivery, maintaining inventory, shipping the systems to others, repairing or installing the systems. Your alternate energy systems will be professionally installed in commercial solar thermal power plants located in the southwest U.S. 

Promotes a Cleaner Environment, Conserves Diminishing Water Resources, and Advances Our Nation Closer to Energy Independence. This opportunity is about as "green" as it gets! By actively promoting the purchase of alternate energy systems, you're directly advancing the use and public awareness of renewable energy in the United States. This technology is so special and unique, in part, because it's cleaner and uses far less water than other traditional or renewable energy sources. This is one reason the state of California is becoming so enamored with the IAS technology in comparison to other solar and wind technologies. Also, by reducing the cost of generating and delivering electricity by up to 50%, IAS technology offers both an environmentally friendly and fiscally responsible alternative to all other energy sources. Dramatic expansion of the role and importance of this technology to our country would help advance our nation toward the path of becoming energy independent and accomplish it by harnessing the energy of the sun. These are worthy goals which justify your active efforts to promote this program, particularly if you have a passion for our environment or for the financial stability of our country. 

Optimal Ground Floor Opportunity (GFO) = Very High Demand coupled with Very Low Supply. RaPower3 Network Marketing Company Launch date: 12/17/09 and date when the network marketing company became fully functioning (Summer, 2010) - based on breakthrough, patent-protected, energy-producing solar power system technology developed by IAS, a company that's been in the development stages for over 10 years but is now entering the implementation phase, with potential to emerge as a major player in the $3 trillion energy industry. Big players in the energy industry and in Washington are aware of this new technology and are keeping a keen eye on the progress being made. Due to the unique nature of the product and the extensive patent protections, entry into the market by competitors is expected to be very slow and extremely difficult and costly. This will help assure that supply remains low for some time. Market demand for IAS technology, including the alternate energy systems, is projected to be high and should remain so for years due to 4 key reasons:

1. IAS technology is projected to produce electricity at up to half the cost of competitors, with power plant components designed to be suitable for quick and inexpensive mass production. It is unlikely other competitors will be positioned anytime soon to replicate the many patent-protected technologies recently developed by IAS which make it possible to dramatically reduce the cost of generating and delivering electricity.

2. Solar power plants based on IAS technology do not require cooling towers, as do other types of power plants, including other solar energy technologies. Conservation of precious water resources is one key reason public utilities prefer IAS technology over other renewable energy options, particularly in desert areas of the southwest, where water tables are at record lows.

3. State legislatures, such as the California legislature, are requiring that a certain percentage of the power of utility companies come from renewable sources. For example, California mandates that all public utilities obtain 10% from renewable sources starting in 2010, and that mandate gradually increases each year, up to 33% by 2020. Demand for IAS Technology-based power plants should grow dramatically with the increased demand for renewable energy in may states. About half the states have adopted similar programs mandating public utilities to obtain a portion of their power from renewable energy sources.

4. The combination of lucrative tax savings, very low risk, low cost of entry for each distributor, residual residual quarterly income payments for decades, and wealth-building monthly commission checks creates a level of demand that has never been seen before with other network marketing companies. If you're having difficulty deciding today how many alternate energy systems to start with, we recommend you read FAQ #5 for guidance on how to determine the number of systems to purchase each year to maximize your tax savings benefits. If your current cash flow is a deterrent for you, you might consider increasing your personal allowances so your take home pay will increase by an amount comparable to your anticipated tax savings from your alternate energy system purchases. Alternately, you could possibly purchase a single system so you can quickly launch your business and begin building your Tier 1. Later, you’ll likely benefit from purchasing a number of additional alternate energy systems (up to 50 or more can be purchased each year), thereby optimizing your tax savings by possibly becoming liberated from paying federal taxes from now until the end of 2016. 

April 14, 2010