Frequently Asked Questions





This opportunity looks so good, that I can’t help but think you’re leaving something out. What’s the catch?


This opportunity is every bit as good as what we've outlined in this website. And, to demonstrate full transparency and not appear that we’re hiding anything, we will outline for you here, in one convenient place, every feature of this program that could possibly be a source of additional questions.
 


FAQ Table of Contents (By Topic):

1. Does each alternate energy system cost $1,050 or $3,000 and what is an alternate energy system?

2. What's the risk that residual income from the systems will fail to cover the $65 payments?

3. What are the tax implications if I surrender my systems in 5 to 6 years? Can I lose money?

4. Am I eligible to take the 30% tax credit even before my alternate energy systems have been installed?

5. What's the guideline for determining how many systems to buy to maximize tax savings each year?

6. What's the downside to purchasing too many alternate energy systems?

7. What tax forms and documentation do I need to claim the federal tax benefits?

8. Does the program qualify for state tax benefits as well?

9. Is marketing the program to others a requirement for receiving the tax benefits?

10. Can businesses participate and receive benefits similar to that of individuals?

11. I don't have $1,050 in available cash. What payment options do you offer?

12. I don't pay any U.S. federal income taxes. Would I still be eligible for the program?

13. What's the downside, if any, to not enrolling now?

14. What's the background of the owners of SunPowerAssociates.com and what's their connection to RaPower3 and IAS?
 




1. I'm impressed with and understand the tax savings, residual income, and commission benefits, but I'm still confused about how much each alternate energy system will cost me. Does each system cost $1,050 or $3,000, and why is there so much focus on the $1,050 number if that's not the final cost to me? And finally, what exactly is an alternate energy system or solar power unit?


The ultimate number of dollars you'll eventually have paid (35 years from now) for each system is $3,000 (this is not really your true current cost, as you'll see), but there are several valid reasons why we spend more time focusing on the $1,050 number and not the $3,000 number:

1) It will take 35 or more years before you'll have paid the $3,000. That's because the amount remaining to be paid after you pay your $1,050 deposit (or down payment) is $1,950, but that amount is spread out over 30 years, interest-free, at just $65 per year, starting 5 years from now!

2) You'll not begin to pay the $65 annual installment payments (equivalent to just $5.42 per month or $0.18 per day) to RaPower3 until 5 years after you've begun to receive contractually guaranteed annual rental payments from RaPower3 for each of your alternate energy systems. The amount of these income checks are contractually set at $150, and they're expected to start arriving in 2011, so the first $65 installment payment would not be payable until 2016, but only if you've already received about $750 in aggregate income payments from your alternate energy systems over the next 5 years.

3) The main reason we focus much more on the $1,050 instead of the $3,000 is because $1,050 is your actual out of pocket up front cost. Whether or not the purchase of alternate energy systems makes good economic sense for you is far more dependent on how quickly you can recoup your initial $1,050 per system deposit because you pay that amount on Day 1 (or it may be deferred slightly by paying $100 monthly for 12 months - if you pay your deposit n monthly installments your deposit will equal $1,200 instead of $1,050) , but you won't pay out another dime for at least 5 more years, and even then, the annual installment payments will be so small and so spread out that they should have little economic impact on you. This is particularly true when you consider that your contractually guaranteed $150 in residual rental income each year will cover those $65 annual installments, with $85 profit left over each year, so your only true out-of-pocket expense associated with purchasing your alternate energy systems is your $1,050 deposit!  This is the primary reason we focus our discussions on recouping and profiting from the $1,050 per system deposit.

4) The above discussion sounds good, but we can actually put some objective, analytical numbers behind it as well. We can calculate the present value of those future $65 payments starting about 6 years from today and extending out for another 30 years. Using a 5.5% discount rate (a reasonable average annual return you could expect to earn on your money over that period), that present value calculates out at $685. These calculations are quite complex (we used an HP 12C financial calculator for our calculations), but feel free to verify their accuracy with your CPA or financial advisor. Incidentally, if we used a discount rate of 7%, that present value is only $537. If you do what any banker would do and look at these future payments from a present value perspective, the universal way every financial expert would evaluate this, you can easily see that the amount due on each alternate energy system after payment of the deposit is objectively a much smaller and therefore less important number than the $1,050 deposit, and when you consider that your residual income payments should readily cover your $65 annual installment payments, we hope you can fully understand why we put virtually no focus on the $3,000 price per alternate energy system, but instead on the profits generated from the $1,050 deposit.

An alternate energy system or solar power unit is essentially a unit of ownership of a commercial solar power facility being built in the desert southwest. Specifically, each unit represents 2.5% or one-fortieth (1/40) of a completed solar tower. You can see pictures of the IAS solar towers on our technology page.  A solar thermal power plant consists of dozens of solar towers arranged in a solar field.  There's a diagram showing an IAS solar field in our technology page.  It takes about 29 solar towers to generate 1 megawatt of power, or enough electricity to provide peak power for about 500 homes and businesses for one year. So, about 23 alternate energy systems are needed to provide peak power for about 10 homes and businesses for one year.  A solar thermal power plant is currently under construction near Delta, Utah as of November, 2010, with 41 solar towers either completed or nearing completion, with more towers to be added.  This 1.5 to 2.0 megawatt solar power facility should be on line, generating electricity, by 2011, and more, even larger, solar power facilities will be constructed on land that has already been acquired in southern Utah. Eventually, facilities are planned throughout the southwest.

IAS already owns about 600 acres, and they have the ability to exercise rights on thousands of additional acres in the desert of southern Utah, as the need arises.  Since this land is essentially useless for residential development or for agricultural uses, thousands of acres are readily available for IAS to purchase or lease at a very low price per acre.  IAS also has plans to purchase  vast expanses of cheap land in other areas of the southwest.  One huge benefit that works in IAS's favor is the fact that the most attractive land to IAS is generally the least inhabitable and cheapest land to buy or lease.  By the way, the land IAS owns and has rights to in southern Utah is a stone's throw from the massive IPP Power Plant near Delta, UT, so transmission lines connecting to the huge power plant will not be an obstacle, or require as much time or expense as would be typical with solar energy power plants.  In other words, future expansion as dramatically increasing revenue streams flow into the company is not an issue we should be concerned about.            

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2. The $150 in annual residual rental income checks have not commenced yet, and IAS is not yet a known or established player in the renewable energy industry, so how do I know I'll receive more income than the total amount I'll pay out? In other words, how do I know this will be a profitable, long-term venture for me? What's the risk?

International Automated Systems, Inc. (IAS) is a company currently emerging after many years in the research and development stages, having spent almost $38 million (and earning virtually $0 revenue; hence, on paper the company has no value). While we can't make any guarantees, and risks do exist (as they do with any lucrative opportunity - if anyone ever tells you they can make you rich without you assuming ANY risk...RUN FAST!), the pieces of the puzzle are in place for IAS to stake a respectable market share claim, and possibly introduce revolutionary advances into the $3 trillion worldwide energy industry. Among the recent developments:  

1)
Thousands of alternate energy systems have already been sold and have already qualified hundreds of owners for the 30% federal tax credits and depreciation deductions, and construction and installation is currently well underway in the Delta, Utah area of IAS-designed power generation facilities.  

2)
The partnership of IAS with the distributor, RaPower3, is generating rapidly expanding network marketing revenue growth;

3)
IAS possesses the capacity, as market needs dictate in 2011 or 2012 or beyond, to expand its solar lens annual production capacity to 1 Gigawatt, (this would require the manufacturing of two additional molds using their 89,000 lb mold manufacturing machine)  which is enough solar lenses, when integrated into functioning, on-line solar power generation facilities, to supply an estimated $1 Billion in sales per year.  The solar lenses are made out of Lucite, a commercial form of plastic, and they're extremely inexpensive to mass produce and maintain.  This is just one of many of the engineering marvels invented by IAS President, Neldon Johnson.  

4)
IAS has developed patented technology with applications to practically every facet of life for most Americans. For example, they've developed a solar heat concentrator that has been demonstrated in field testing to elevate temperatures from solar energy to about 3,000 degrees.  This could be used to convert zinc oxide to zinc to facilitate the mass production of IAS zinc air batteries.  Many experts believe Zinc air batteries will eventually power both motorized land vehicles (cars, trucks, and trains) as well as homes and businesses.  For a detailed analysis of this, go to our News and Testimonials page under the LEARN MORE tab where you'll find a compelling white paper written by a group of French researchers, prepared in summer, 2010;  

5)
IAS has developed the technology to efficiently and cleanly convert bio fuels such as waste products into energy. Biomass to energy units and heat exchangers will be integrated with the solar energy plants to generate electricity at night when the sun doesn't shine. This 24/7 energy producing capability should help catapult the IAS solar technology into the mainstream. Since the late 1800's there have essentially been no new technology advances with heat exchangers. When these IAS heat exchangers become operational, IAS will redefine this important phase of the energy conversion process. Coal plants use massive boilers and extensive tubular networks which require replacement about once every two years, often rendering plants offline for 4 to 8 weeks. The IAS technology is totally unique, does not use tubes, and is about one thousand times smaller, so efficiency is optimized and maintenance and latency costs minimized.  

6)
  IAS has invented so many breakthroughs in solar energy technology, there are almost too many to mention, but just consider for a moment the revolutionary bladeless turbine engine, invented by IAS about two years ago, that's cheaper to manufacture, far less expensive to maintain, and it can be built to different sizes, thus making solar power plants scalable!  And how about the unique dual axis, computer controlled, hydraulic system that helps the solar towers and lenses maintain the optimal angle to the sun throughout the day, while monitoring  weather conditions and wind speed. The patented louver system, also developed by IAS, has been independently certified by engineers to protect the towers and lenses from hurricane force winds up to 90 mph!  

7)
Perhaps most importantly, after many long months of waiting, IAS finally received the all important, independent CIVIL ENGINEERING STAMP OF APPROVAL on the IAS systems and their components in late September, 2010. This allows IAS to obtain competitive manufacturing bids based on the CAD renderings of the various components of the energy systems, and to obtain insurance.

Opponents of IAS would have you believe that IAS has spent $38 million with no intention of ever bringing these amazing products to market because they've spent so many years in the past without successfully delivering a product to market. Over these past several years, however, IAS has actually been engaged in the arduous task of trying to work out bugs and perfect the breakthrough, revolutionary technology that could elevate these systems to landmark status within the energy industry.  What IAS opponents won't ever tell you is that great advances in energy technology, or for that matter any technology,  take time and they take patience. Now is the time, in 2011, 2012 and beyond, for IAS to prove to the world what they're capable of contributing to the energy industry, to our nation, and to our planet!  2011 and 2012 should prove to be pivotal years for all 7 Figure Legacy members and for International Automated Systems, Inc., and you could be at the center of it all because your support will help to make these technological advances into the mainstream possible, and fortunately for you, very little downside risk is involved, while virtually unlimited upside reward potential awaits you!  

We can not overestimate the extreme importance of getting involved in an opportunity such as this very early, BEFORE the masses are awakened to a proven program and system.  By that time, it will already be late for massive wealth-building income growth for newly joining members.  That's why it's important to take action NOW!  Time is quickly running out for the golden window of opportunity.               

Income checks to all alternate energy system owners are projected to commence in 2011, and these payments are contractually guaranteed to be $150 per year. Keep in mind that your contracts guarantee you'll receive 5 years of rental income payments, representing pure profits, BEFORE you’ll begin to remit $65 annual installment payments per alternate energy system to payoff the remaining $1,950 due on each system (or to payoff the remaining $1,800 if monthly financing option is selected, with $60 annual installment payments).  This contract provision  offers you valuable added protection in the event there is any delay in the commencement of rental payments to all owners.  

Your distributor contracts with RaPower3 specify the Target Production Rate (600 peak watts) and Warranty Production Rate (570 peak watts) for your systems that help assure low risk for you. If production is below 5 times 570 peak watts during the first 5 years (subject to possible reduction for annual cloud cover if measurably higher than normal), you'll have the right to terminate from the program and owe nothing more. If, however, your systems have generated income consistent with the warranty production rate over the 5 years, the remaining $1,950 (or $1,800) due on each system is spread out, interest-free, over 30 years into $65 (or $60) annual installments. Interestingly, the present value of the future annual $65 installments, assumed extending from 6 years hence through year 35, using a discount rate of 5.5%, is only $685 per system. Put another way, if the total present value of your out of pocket costs is $1,735 ($1,050 + $685 = $1,735), and if you're guaranteed to receive back from the IRS over $1,600 in tax savings alone (28% marginal tax rate) or almost $1,300 in tax savings (15% marginal tax rate), you can see that your maximum downside risk (the portion of your risk that is not guaranteed by the U.S. federal government) is remarkably low! To further lower your risk, you’re also contractually guaranteed to receive 5 years of rental income payments (likely $750 over the first 5 years alone, with 30 more years of payments to follow) before you'll commence the $65 installment payments. You can see that your ultimate downside risk is incredibly small, so profits are virtually assured!  In fact, anyone who pays at least $1,250 in federal income taxes each year and who does not purchase more alternate energy systems than a number representing their actual annual federal tax liability divided by $1,250, and who qualifies under the IRS Active Passive Rule is GUARANTEED TO MAKE PROFITS with this opportunity! Just think about that for a moment. This is the first MLM opportunity in history guaranteed to make profits for all of its members who follow a few simple rules and meet a few simple requirements.

The first 5 years of $150 rental income payments represent pure profits, and these payments are scheduled to continue for 35 years! In other words, most alternate energy system owners should receive back from tax savings and 5 years of income payments between approximately $2,050 and $2,350 per solar unit, or roughly double (and in some cases more) the amount of their deposits BEFORE they commence making $65 annual installments per system. At that time, the annual rental income payments will have been firmly established for 5 years, and continuing to receive lucrative residual rental income checks every year for decades is contractually guaranteed.  The $65 installments to RaPower3 are required only if the $150 rental payments are being paid to you by RaPower3.  We can't think of any possible way any similarly lucrative, high return opportunity could represent lower risk than this!   In fact, if you're being offered any higher returns than this, and if you're being told there is no risk or very low risk, we recommend that you avoid such opportunities at all cost. Unfortunately, there have been recent scams involving promises of upwards of 5% to 10% or more monthly returns in telecommunications services, supposedly for the casinos in Las Vegas.  Many mostly retired individuals believed the promises of doubling their money every 6 to 12 months, with virtually no risk of loss, and invested their life savings in these scams, only to discover that the scam artists had vanished, along with their nest egg, within weeks after the big "show" in which unbelievable riches were promised, with no effort required.    

Make no mistake about it. The opportunity we're offering you can make you rich, but not without some effort, a few leaps of faith, and assuming a little bit of risk.  You could make a nice living with very little effort on your part, but if your goal is financial freedom, while we can't make any guarantees, we recommend that you actively engage in several of the marketing activities outlined in the Legacy page in #11. Some involve talking to other people about the opportunity, others do not, at least initially, require any human contact. You'll also need to make a leap of faith by paying at least one $1,050 deposit (or $100 per month for 12 months), that the United States government will make good on their federal tax legislation regarding solar energy property, passed by Congress, and refund every penny of your deposit, and then also refund another 20% to 60% more than you deposited over the course of several years, by virtue of 30% tax credits and depreciation deductions. Then there's the leap of faith that RaPower3, backed by the landmark technology of IAS, will make good on their contractual promise to pay you $150 per year per unit in rental income. What's the downside to this? If they don't make good on this promise, then both IAS and RaPower3 would fail within a few years, but would you likely be out of pocket any money if that happens? Not likely!  By that time, you should have already received, several years prior, your out of pocket investment ($1,050 deposit per unit) back from the government, plus some additional profit, and 3 years is the statute of limitations for old tax returns!  

The final leap of faith is that this website can effectively educate people about this opportunity and influence them to take these leaps of faith. Could you lose money on this particular leap of faith? Yes, to the tune of only $105.85, after paying $1.00 the first month and $34.95 in months two, three, and four, in addition to any products and services you decide to purchase from SunPowerAssociates.com.  Because at your 4 month mark with the Legacy program, unless you're earning consistent monthly net profits already, you'll have the option to transfer your membership to the Business Affiliate level at $24.95 or the Retail Affiliate level at only $14.95 per month. Also, you can cancel your membership with SunPowerAssociates.com at any time with just 10 days advanced notice.  But what's the upside reward potential?   In addition to the 55% commissions for each Legacy member or business or retail affiliate sponsored,  you'll also earn 6 tiers of lucrative commissions. Just look at the diagrams at the top of the WEALTH page for a dramatic visual representation of how many people you could be earning commissions on for EACH PERSON YOUR SPONSOR FOR 7 FIGURE LEGACY.  If you need to put some dollar amounts behind it, simply go to the Net Profit Simulator, click on the Activate Lower Simulator button, and input whatever numbers you want for your tier 1.
If your downside for Legacy is slightly over $100 plus some other nominal amounts, what's your upside?  


If everyone in your 6 tier network sponsors and retains only 2 others each, on average, to purchase alternate energy systems, that one person would eventually expand to 63 people who you could be earning commissions on for the next 35 years!  And if everyone in your 6 tier network sponsors and retains just 3 others each, on average?  That one person you sponsored would eventually expand to 363 people who you could earn commissions on every year for the next 35 years! After you've sponsored just 2 others for the Legacy program, you'll be earning $210 every month, plus your 6 tiers of commissions, perhaps eventually on 126 people (Power of 2) or even 726 people (Power of 3). Now, multiply these numbers by the number of people you think you might sponsor for Legacy using the 7 different marketing strategies we outline in detail in the LEGACY page #11. Finally, ask yourself, is all of this worth the risk of paying $34.95 per month? Only you can answer that question.                       

While your $150 rental income payments are guaranteed each year, it may be useful for you to understand technically how gross income is derived from your units from the commercial sale of electricity. To calculate the annual gross income we need 4 key data figures:

1) Peak wattage production rate;
2) Average to peak efficiency ratio;
3) Rate per kWh (kilowatt hour) the peak wattage (electricity) is contractually sold at;
4) Number of hours in a year = 8,760 hours (24 X 365 = 8,760).

We know data figure #1 should be either .57 peak kilowatts warranty production rate or .60 peak kilowatts target production rate. We know data figure #4 is always 8,760 hours. For data figure #2, the solar industry standard is about 20% to 24%, but IAS technology is measurably more efficient than standard solar technology, for a number of reasons, and has tested at about 24%, based solely on the electricity generated when the sun is shining. It has now been established that IAS will be able to generate power on a 24/7 basis thanks to their patented biomass and solar heat exchangers, and their solar heat concentrator. Therefore, the 24/7 efficiency ratio is expected to exceed 35%. For our purposes, we'll use 35%. For data figure #3, we'll use 10.5 cents per kWh, which is about 10% lower than the national average and about 25% lower than California rates. Interestingly, electricity rates increased by an average of 33% from 1997 to 2008, and this trend is expected to continue. 

Here's our formula:

.60 peak watts X .35 (average to peak efficiency ratio) X $.105 per kWh X 8,760 hours = $193.16 annual income.  RaPower3 has contractually agreed to pay you $150 rental income per year, and those funds will come from the revenue they generate from the commercial sale of electricity which is expected to commence in 2011.  By then, the ground floor opportunity with this program will be gradually drawing to a close as millions of Americans become well aware of this breakthrough technology and this unprecedented tax-liberating, wealth-building opportunity. That's not the time to jump on the bandwagon.  Leaders are rewarded infinitely more than followers!  The time to act is NOW!         

As the population grows, demand for electricity increases, and this generally drives prices higher. The future demand for cleaner, renewable energy that uses less water should be extremely strong due to state and federal legislative mandates and tax incentives.  The state of California, for example, is requiring that 10% of all public electricity come from renewable sources in 2010, and this requirement increases each year until 33% of public power must come from renewable energy by the year 2020. This will only increase demand for renewable energy in the years to come. The IAS biomass heat exchangers and solar exchangers have been constructed and successfully tested as of December, 2010, so biomass heat exchangers are planned for solar thermal facilities currently being built and for planned facilities as well, with 24/7 electricity production resulting.    

Sun Power Solutions, LLC, DBA SunPowerAssociates.com does not provide professional tax advice. Please consult your CPA or tax attorney regarding all personal tax-related questions.

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3. If I should become eligible to surrender my SPU’s back to RaPower3 in approximately 5 to 6 years, where would that leave me with the IRS, since I’ve already claimed and received substantial tax benefits due to my ownership of SPU’s? Would I need to pay back all of the benefits I’ve received? Could I ultimately lose money?

Surrendering your units back could have certain tax implications moving forward, if for no other reason because the forgiveness of the debt could potentially be considered a taxable event. Fortunately, your CPA can recommend the best course of action from a tax implication standpoint. Your CPA can advise you on various tax issues, including the 3 year IRS statute of limitations for auditing past tax returns (except for in the case of tax fraud).

This program has been designed to reduce the need for you to ever surrender your units. For example, if you have received your guaranteed 5 years of income from your units, even if your income was lower than expected, your CPA may advise you to make the small installment payments of $65 per unit per year and not surrender your units. After all, if the alternate energy system has produced 5 years of $150 rental income to you, these residual payments should easily cover the $65 per unit annual installment payments going forward, with plenty of profit left for you! If the system has worked efficiently for 5 years, you'll continue to receive steady, substantial residual income. The laws of supply and demand and the 24/7 energy production capabilities should help assure this outcome. In the unlikely event that the 5 years of income falls below the warranty production rate of 5 times 570 peak watts, you would have the contractual right to surrender your units, and in this case your CPA could make recommendations that would involve legal, proactive, favorable strategies moving forward. Bottom line, losing money with this program is highly improbable and would likely involve a member making ill-advised decisions on their purchases and then selling their units back to RaPower3.  Such an unfavorable outcome (losing money) would likely be the outcome of an owner making illogical, emotional decisions that run contrary to the professional counsel of their CPA.

Sun Power Solutions, LLC, DBA SunPowerAssociates.com does not provide professional tax advice. Please consult your CPA or tax attorney regarding all personal tax-related questions.

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4. How can I legally claim the 30% federal tax credit for solar property or take the depreciation deductions in 2010 if the solar power facilities are not yet generating income from the commercial sale of electricity?

The federal government supports individual and business investments in solar property designed to produce electricity. If everyone had to wait 2-3 years before receiving any tax benefits from solar investments, this would likely slow investment activity in renewable energy. Such an outcome would run contrary to the government’s agenda to advance our nation toward greater energy independence and a cleaner environment. It is your purchase of alternate energy systems that qualifies you for the tax benefits, under the term “placed in service”, as evidenced by the following excerpt from the United States Federal Tax Code:

However for your personal information, Section 103 Div. B Energy Credit (code Sec. 48), “for projects whose construction time is expected to equal or exceed two years, the Credit may be claimed as is placed in service.”

Sun Power Solutions, LLC, DBA SunPowerAssociates.com does not provide professional tax advice. Please consult your CPA or tax attorney regarding all personal tax-related questions.

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5. If I don't have a CPA, or if I'd prefer a quick guideline for determining how many solar units I should consider purchasing each year to receive substantial tax savings, what do you suggest?

While we recommend that everyone consult with a CPA to determine the optimal number of solar units to purchase each year to maximize tax savings, there is a basic guideline that may be helpful to some. Simply take your prior year federal income tax liability (this includes the amount you paid in estimated quarterly taxes or the amount withheld by your employer for the entire year, plus any additional taxes you paid with your tax return or minus any refund due to you or already received by you). If you expect your current year federal tax liability to be about equal to or slightly higher than the prior year, then divide your prior year total tax liability number by $1,250 (maximum number to buy) to $1,500 (minimum number to buy) to get a basic guideline for the approximate number of alternate energy systems you should consider purchasing this year, and repeat the same process every year until 2016, making necessary adjustments if you find you were not able to utilize all your tax credits the previous year, or if perhaps you could have utilized additional tax credits to your benefit. Please keep in mind that if your income is such that you are in higher tax brackets and need to purchase more than 28 alternate energy systems per year, you should be cautious about making tax-related decisions unless you first consult with your CPA, and such consultation is encouraged for all. For individuals with $0 federal tax liability currently, we recommend the purchase of only 1 alternate energy system in the first year because this is the minimum requirement for your participation in the entire program, including the 6 tier commission program and the 55% commission 7 Figure Legacy revenue sharing program. You will not be required to purchase any additional systems to continue your participation in these programs, although because you'll have the opportunity to create life-changing wealth as a direct result of your active participation in these programs, you'll likely develop a need to purchase more systems in future years if you wish to offset higher federal income tax liability. While the tax savings associated with the purchase of solar units are compelling, your decision to purchase these systems could and should stand on its own merits, based on the residual income expectations, without factoring in the tax savings benefits.

Sun Power Solutions, LLC, DBA SunPowerAssociates.com does not provide professional tax advice. Please consult your CPA or tax attorney regarding all personal tax-related questions.

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6. If I purchase a significant number of alternate energy systems this year and ultimately discover that I’m not able to claim all the tax credits or depreciation deductions I’m entitled to because I purchased too many units, would I have to forfeit some of these benefits?

You should not have to forfeit tax benefits simply because you purchased more systems than what was advisable given your income and tax situation, but you may be required to wait a little longer to realize those tax savings benefits, although your residual income benefits would not be delayed as a result of this. Let’s say that you purchased 10 alternate energy systems in 2010, for example. This would give you $9,000 in immediate tax credits and $25,500 in total 6 year depreciation deductions, and both tax credits and depreciation deductions can be rolled back and used to re-file for additional tax refunds for the prior year, 2009. And, both tax credits and depreciation deductions can be used up to 20 years in the future.

Let's assume in this example that your CPA advises that you can obtain an additional tax refund of $1,500 by re-filing your 2009 federal return, and that your 2010 tax liability before applying these credits or deductions is $5,000 (with solar property units, you can not claim credits or deductions that exceed your tax liability, but fortunately the 30% solar property tax credits can offset up to 100% of your tax liability, or offset up to 100% of your AMT, if applicable; depreciation deductions can offset your tax liability but not any applicable AMT). What could you do in this situation? First, you could take $5,000 of the tax credit in 2010 and second, use $1,500 of the tax credit for 2009, and third, roll the remaining $2,500 of your $9,000 tax credit to 2011, thereby reducing your 2010 tax liability by $5,000 down to $0 and reducing your 2011 tax liability by $2,500 and reducing your 2009 tax liability by $1,500. You could also roll forward your $25,500 in unused depreciation deductions until you can use them, subject to the schedule of eligible depreciation percentages each year, based on the double declining balance method. And remember, when it comes to the solar property tax credits or depreciation deductions, you can carry back the benefits one year or roll unused tax credits or depreciation deductions forward up to as many as 20 years.  Even if you purchase a number of solar units in December, 2016, just before the expiration of the 30% tax credit in the federal tax code, you could still use those benefits up to 20 years beyond 2016.  The important point is that you purchased the units while the tax credit was still part of the federal tax code.  Just because that credit may be removed from the tax code in 2017 does not remove your ability to extend your 2016 tax benefits to as far in the future as 2036! 

The only concern you need to have about buying too many alternate energy systems in a particular year is one of cash flow, not one of forfeiting tax benefits. You should get all of your tax benefits. You may just need to wait longer to receive them if you purchase more systems than what you can benefit from in any particular year. One other aspect to consider is that if you anticipate higher marginal tax rates over the next 2 to 20 years, though you may be required to delay filing some of your tax credits and deductions until future years, it is more likely that your net tax savings in those future years will be higher if your marginal tax rates have increased during that period. In other words, by being able to use these tax credits and deductions in the prior year or up to 20 years in the future, you are able to use them when you need and can benefit from them the most!

Sun Power Solutions, LLC, DBA SunPowerAssociates.com does not provide professional tax advice. Please consult your CPA or tax attorney regarding all personal tax-related questions.

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7. What federal tax forms will I need to claim the 30% solar property tax credit and the depreciation deductions on solar property? What documentation will I need to prove my ownership of the alternate energy systems and my eligibility for the tax credits in my year of purchase?

You should print both the form and the instructions (go to http://irs.gov for forms) for the following:

• Form 3468
• Form 3800
• Form 4562
• Form 1040

IAS or RaPower3 will mail a letter no later than the end of February to all purchasers from the previous year to demonstrate both proof of ownership and also eligibility for 30% federal solar property tax credits for the year of purchase. You should also save your original purchase documentation and receipts in your tax file for the year of purchase.

Sun Power Solutions, LLC, DBA SunPowerAssociates.com does not provide professional tax advice. Please consult your CPA or tax attorney regarding all personal tax-related questions.

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8. Do alternate energy system purchases qualify for state tax credits?

Each state is different. Therefore, you must check with your CPA to determine what the guidelines are for your state. For the state of Utah, for example, the home state of RaPower3 and IAS, once a state official inspects the Alternate Energy System and verifies that it is generating electricity and revenue, Utah distributors will get a 10% state tax credit up to $50,000, so this credit is expected to become available in 2011 for Utah distributors who purchase alternate energy systems in 2011 or beyond. Let’s assume that the Utah state tax credit becomes available in 2011, you live in Utah, and you purchase 10 solar units in 2011, for example, with a deposit of $10,500. In this example, you would qualify for a $9,000 federal tax credit as well as a $3,000 Utah state tax credit for 2011, for $12,000 in total tax credits! In this case, the tax credits alone would refund over 114% of your $10,500 deposit amount, regardless of your tax bracket! Your additional tax savings originating from your depreciation deductions, as well as your annual residual income checks, starting in year two, would represent additional pure profit to you!

Additionally, in many states your depreciation deductions on your solar units offset not only your federal income taxes but also your state taxes.  While we have not factored this tax savings benefit into any of our calculations or projections (because tax rates in each state vary), you should consult with your CPA about this additional potential tax benefit of purchasing alternate energy systems each year until 2016.     

If your state does not currently offer any renewable energy tax benefits, we recommend checking back with them about every 6 to 12 months because more states are adding renewable energy tax benefits each year.

Sun Power Solutions, LLC, DBA SunPowerAssociates.com does not provide professional tax advice. Please consult your CPA or tax attorney regarding all personal tax-related questions.

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9. The benefits of alternate energy system ownership look really favorable, but I'm not sold on marketing the opportunity to others. Wouldn't that eliminate, for me, most of the financial benefits of purchasing solar units because of the requirements imposed by the IRS Active/Passive Rule?

You would still receive the 30% federal tax credits, and this alone would erase $900 of your upfront cost (deposit) for each system. Additionally, if you setup your business in your name alone, and if you do not have any employees other than your spouse, you should meet the IRS Active/Passive Rule and qualify for the depreciation tax deductions representing $714 in additional tax savings (28% marginal tax bracket) or $383 in additional tax savings (15% marginal tax bracket) without being required to work a minimum number of hours in your business. However, it may be important from a tax perspective that you be in a position to show that you are operating your business with the intent to generate consistent profits. This is one of many reasons why it is very beneficial for you to activate your 7 Figure Legacy membership, order business cards, and get the word out to people you know and meet about your website. The act of licensing a renewable energy marketing website and letting people know about your website and generating commission revenue from 6 tiers should be enough to convince the IRS that you are making a concerted effort to operate a profitable renewable energy business.  You should be able to devote as little as 2 hours per week and still generate consistent profits. Also, by receiving about $750 in total income payments, free and clear, in the first 5 years after installation and startup of the solar power facilities, this would represent pure profit to you! Then, in future years, your $150 annual residual income checks should readily exceed the annual $65 installments, with $85 profit left over each year!  And keep in mind that all of these numbers represent the benefits of purchasing a single unit... most will purchase a number of units every year!

While qualifying for the depreciation tax deductions is relatively easy, even without the depreciation deductions, this remains a compelling opportunity. If you'd like to see the impact of taking the depreciation deductions away, simply go to the Net Profit Simulator and input 0% for your tax bracket. This will remove all depreciation tax benefits that are tied to the IRS Active/Passive Rule. You'll see that even without the depreciation deduction tax savings, the financial benefits of system purchases are still quite impressive and beat most sensible options available for your funds today, particularly from a risk-adjusted return perspective.

We should lastly mention that if aversion to SELLING TO OTHERS is your primary source of objection, the 7 Figure Legacy Program is well suited FOR YOU! We'll provide you tools and methods for turning your SunPowerAssociates.com website into a virtual autopilot revenue-generating machine because there are active alternative methods that do not involve talking to another person, that can nonetheless generate life-changing wealth for you! So aversion to selling should never be a reason for not participating in this unprecedented opportunity. After all, as a 7 Figure Legacy member, you'll have the two-time Emmy Award winning actor and comedian, Jay Thomas, who Late Night talk show host David Letterman called, "the funniest man in America" selling on your behalf and influencing your website visitors to purchase solar units and activate their 7 Figure Legacy memberships, so how could you possibly go wrong, even if you've never sold anything to anyone in your life, and even if you've never made a dime in internet sales?

Furthermore, we have several built-in features to make the 7 Figure Legacy Program a low risk venture for you.  First, you'll pay only $1.00 the first month, and we offer a Full Satisfaction Unconditional Guarantee in the first 30 days if you're not satisfied for any reason. After that, you can cancel with 10 days notice for any reason and pay no more.  Prior to your 4  month mark you'll be invited for a FREE 20 to 30 minute consultation with SunPowerAssociates.com to review your business and marketing plans.  Sun Power will recommend ways you could turbo-charge your results based on your specific budgetary constraints.  We realize that some people are late bloomers.  We can't expect everyone to be earning thousands of dollars in net profits every month within their first 6 months. In fact, some of the very best members may only sponsor a single Legacy member in their first 6 months, or perhaps none at all, only to discover their personal niche for successfully expanding their tier 1 after their first 6 months.   
             

Sun Power Solutions, LLC, DBA SunPowerAssociates.com does not provide professional tax advice. Please consult your CPA or tax attorney regarding all personal tax-related questions.

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10. Can businesses participate and have an opportunity to earn tax savings benefits, residual income, and wealth-building commission revenue similar to that of individuals?

Yes, this program is available for U.S.-based businesses as well as individual U.S. federal income taxpayers.


Sun Power Solutions, LLC, DBA SunPowerAssociates.com does not provide professional tax advice. Please consult your CPA or tax attorney regarding all personal tax-related questions.

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11. OK. I’m sold! But my cash flow is tight, so I can’t afford the up front $1,050 deposit per system and then be required to wait 4 to 12 months to receive that money back in the form of tax savings. What payment options do you offer?

This is a great question! Fortunately, we offer a favorable solution for you.  RaPower3 offers a monthly payment option of $100 per alternate energy system per month for 12 months. You could consider determining the number of additional allowances you could appropriately file with your employer, and the resulting additional take home pay each month could cover some or most of your monthly payment. Or, if you pay your taxes quarterly, you could possibly make appropriate adjustments to your quarterly tax payments and this could potentially cover much of your additional monthly expense. We always recommend consulting with your CPA before making changes to withholding or quarterly estimated taxes, and this same advice applies to making decisions on the optimal number of systems to purchase each year. With the monthly payment option, your deposit would be $1,200, not $1,050, but then your annual installment payments, which start after receiving 5 years of income payments, would be $60 per year, instead of $65 per year, because your remaining payoff balance on each system would be only $1,800 instead of $1,950.

Sun Power Solutions, LLC, DBA SunPowerAssociates.com does not provide professional tax advice. Please consult your CPA or tax attorney regarding all personal tax-related questions.

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12. If my tax liability is too low to pay U.S. federal income taxes or if I don't pay federal income taxes because I reside outside the U.S., can I still participate in this program?

Only U.S. citizens who earn U.S. income and pay U.S. federal income taxes can participate in this program. While RaPower3 may eventually open up other countries for the network marketing opportunity, this is not likely to occur until at least 2012. Currently we offer business and retail affiliate programs for international clients, subject to international laws and regulations. Please see the top of the Legacy page for more information on these programs. I

f you are a U.S. citizen ineligible to receive any U.S. federal tax benefits due to $0 federal tax liability (due to either low income or high current credits and deductions), we recommend that you limit your current alternate energy system purchases to a single unit for a $1,050 deposit and immediately activate your 7 Figure Legacy Membership. Your primary focus should be the 6-tier commission opportunity as well as the Legacy Revenue Sharing Program monthly residual income opportunity. Your taxable income likely will increase due to the 7 Figure Legacy Program, possibly dramatically, and as it does, your need for the significant tax benefits of alternate energy system ownership should increase. Fortunately, you can apply unused solar property tax benefits (tax credits or depreciation deductions) up to 20 years after your alternate energy system purchase. Using the Net Profit Simulator, if you purchased a single system and you're ineligible for tax benefits, simply input 0% for your average tax rate and subtract $900 from your total personal net profit numbers (upper simulator table). Then follow the instructions for the lower simulator table. You should run various simulations for number of systems the typical member will purchase each year from 2010 to 2016, ranging this number from 1 to 4 systems for each year. Then in the lower simulator table run various simulations for the number of people you think you could potentially refer this opportunity to, ranging your Tier 1 estimate between 5 and 500. You'll see that you will likely need big tax benefits within the next couple years, so don't worry about buying a single alternate energy system today, even if you can't use the tax benefits this year, because you can always use those benefits in a couple years when you need them most!

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13. I really want to enroll because I can see the potential for tremendous personal wealth-building on the network marketing side of this, not to mention the personal tax savings, residual income benefits, and Legacy revenue sharing income. But, I think I'll wait on the sidelines until after RaPower3 commences in sending regular residual payments. That way, I'll know exactly how much income I'll be earning and exactly how profitable this program will be long-term for everyone.

This may be a tempting thought, but we can NOT recommend waiting on the sidelines because there’s no compelling reason to delay action, yet there are several compelling reasons to act promptly and decisively.

First, you can simply purchase just one to three alternate energy systems now to give you the opportunity to establish your business and begin the marketing efforts to build your network before the critical ground floor opportunity has passed. You can still sit on the sidelines with regard to additional system purchases until after residual income payments to all owners has commenced. This solution would give you the best of both worlds! Don't miss out on building and establishing your network while the ground floor opportunity is still very hot but relatively unknown. At the same time, you could eliminate uncertainty by putting up as little as $1,050 in capital, and receive back from the IRS and from your first 5 years of income payments, before your $65 annual installment payments begin, roughly double your deposit!

Specifically, if your marginal tax rate is 15% or higher, you should receive back in tax savings and residual rental payments combined about $1,900 to $2,200 for EACH $1,050 you deposited, and this is the estimated amount you would receive BEFORE you commence paying $65 per year! Remember, even when the $65 annual installment payments begin, you should still continue to earn net profits every year because the $150 payments per system would measurably exceed the $65 installments, likely with $85 in net profits left over per system every year! Why wait on the sidelines when you should roughly double your money in the first 6 years (annual return of 10.6% to 13.6%) and continue receiving net profits for decades! Can you find a better opportunity for your money elsewhere?

Second, when a network marketing distributorship represents a ground floor opportunity (GFO), with very high demand and very low supply, your personal network growth could mushroom within a relatively short period of time. Typically, during the GFO period a small number of forward-thinking, entrepreneurial individuals decide that an opportunity is primed for explosive growth, but there may be unanswered questions about a few program details or logistics. These individuals decide that the upside opportunity justifies the downside risk. They are the ones who typically enjoy the greatest success because they identified a truly great opportunity before it became obvious to the masses. Network marketing case studies have proven that those who take action before the masses enter are the ones who distinguish themselves as network leaders and are more likely to become independently wealthy as a direct result. Those already actively building their networks today before everyone else hears about the opportunity will likely become the direct beneficiaries when everyone else hears about the opportunity. You can be the first to introduce this unparalleled opportunity for tax liberation, residual residual income generation, and extreme wealth creation to many others!  In late-September, 2010 the final engineering STAMP of approval was granted to IAS to give them the official green light to begin construction and  manufacturing on a massive scale.  Obtaining permits, insurance, competitive bids, the hiring of construction contractors, and mass production of component parts were not previously possible with the engineering STAMP of approval on all the CAD renderings.  Now, the entire  implementation plan can move forward with cost efficiency and with  precise, timely execution.  This catapults IAS and RaPower3 into the big leagues, enabling them to compete with other renewable energy companies and with fossil-fuel based energy companies, and with the landmark, technological breakthroughs of IAS, is it any wonder who will emerge as a market leader in the $3 trillion worldwide energy industry?     

Naturally, if you're like many of our clients who prefer to legally pay NO federal income taxes until 2017, you'll want to consult with your CPA to determine the optimal number of alternate energy systems for you to purchase each year, or if desired, you could use our rough guideline of dividing your expected annual federal income tax liability by $1,500 to determine the number of units to consider buying.

Sun Power Solutions, LLC, DBA SunPowerAssociates.com does not provide professional tax advice. Please consult your CPA or tax attorney regarding all personal tax-related questions.

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14. What's the personal involvement and connection of the owners / executives of SunPowerAssociates.com with RaPower3 and IAS?

We humbly appreciate the personal time you've invested in reviewing this opportunity. We sincerely hope you've not been disappointed. If you feel we've made good on our promise to you, that "Your Life Is About To Change!", then we ask you to please indulge us a few minutes more for some closing personal thoughts.

RaPower3 launched this network marketing business in partnership with IAS on December 17, 2009. We personally enrolled one day later. The network marketing business did not become fully operational until late summer, 2010, and the independent civil engineering STAMP of approval, required for full implementation of the IAS / RaPower3 rapid expansion and building plan, was not granted until late-September, 2010. Opponents of renewable energy like to dwell on the fact that IAS has not yet generated any revenue from their breakthrough solar energy inventions. True. Opponents like to dwell on how long it has taken to get to this point. All true. But the single most salient fact NOW is that all the pieces to the puzzle are finally in place for major advances in this landmark technology to take place throughout 2011 and beyond, so it will be truly fun to watch this amazing journey of discovery and change unfold throughout the coming year and into 2012.

We've personally now purchased dozens of alternate energy systems, with plans to purchase many more between now and 2016. We've received a full refund of our 2009 federal income taxes paid (we paid $0 in federal income taxes in 2009), and we've already been informed by our CPA that we should not be paying any federal income taxes for 2010 as well. In fact, by virtue of our continued purchases of systems, we intend to essentially remain federally tax exempt until January 1, 2017, when the 30% federal tax credit is scheduled to expire (based on prevailing trends and political sentiments in our country we would not be surprised to see the government extend the 30% tax credit for another 4 to 8 years beyond 2016).

At the time of our enrollment, we knew we were sitting on a very special opportunity due to our familiarity with the two companies involved. We've personally known Greg Shepard for several years, and we know him to be a man of utmost integrity and intelligence. We personally spent over 4 1/2 hours with the inventor of this breakthrough technology, Neldon Johnson, and his wife. Possessing an extraordinarily brilliant mind for innovation, we believe Mr. Neldon Johnson is a man on the verge of becoming a legend in the $3 trillion energy industry. When we asked what he would like his lasting legacy to be, Mr. Johnson stated, "If I have the opportunity to help bring electricity to the many parts of the world currently living without power (1.6 billion people or 25% of the world's population live without power today), I would consider that my lasting legacy". Mr. Johnson is not without his detractors, however. As you might imagine, with a $3 trillion industry there are powerful lobbies and individuals who do not want to see the kind of progress come to the energy industry that this technology could bring. Why? In one short answer: MONEY!...lower potential profits for purveyors of traditional energy technologies.

We personally inspected the 89,000 pound mold manufacturing machine being used to manufacture the molds needed to mass produce the unique Lucite lenses. We were personally shown the first completed mold that is being used to mass produce enough solar lenses to generate 350 megawatts of electricity, or enough electricity to provide peak power for about 170,000 homes. We were shown the remarkably unique bladeless turbine propulsion engine, invented by Mr. Johnson, an engine that reportedly left former NASA and MIT engineers so impressed they were virtually speechless after a successful testing of it. This bladeless turbine can be manufactured to practically ANY size! The implications of this are mind boggling - solar power plants can now be built to almost ANY size on a modular scale - this scalability dramatically reduces the cost and complexity associated with building power plants, and makes it possible to build a power plant to meet any level of energy need, very large or very small! And, finally, we personally viewed a number of prototype solar towers, equipped with dual-axis, computer-automated tracking, which continuously maintain the optimal angle to the sun, thus improving the efficiency ratio in generating power! We were amazed to learn that one person working from home can manage and control a field of 25,000 solar towers by computer, and the computers that operate each tower also monitor weather conditions such as wind speed. If winds rise above a certain level, the innovative louver system is activated to protect the towers and lenses from damage. In fact, independent engineers have given their official STAMP certifying that these solar towers and lenses can withstand 90 mph winds without sustaining damage. The solar tower prototypes are not pretty (remember, mass production could not commence until after the independent civil engineering stamp of approval was granted - as of October 1, 2010, that is now securely in place)  and until they're actually connected to the transmission lines, generating power, they're not particularly impressive.  For those who reside in or near southern Utah, you can visit the area outside Delta, Utah to check the current status of the solar field being built, but keep in mind that this is only the beginning!  Many more projects will follow as the size and scope of the operations are expanded.      

Virtually no detail has been overlooked. This technology is truly amazing, but there's still more to come, as Neldon Johnson has recently commented, "IAS has made a landmark discovery, possibly developing the first solar power technology likely to replace fossil fuels". Just stop and think about that for a minute! What would this world be like if we no longer used or needed: Oil, Gasoline, or Coal? The catastrophic oil spill in 2010 in the Gulf of Mexico, with its resulting environmental and ecological damage could take decades to fully cleanup, and this would have been avoided if our nation was not dependent on oil! We believe this technology represents the dawn of a revolutionary breakthrough in how power will be generated and delivered to America, and potentially the world! Even the top renewable energy technologies of the past decade (PV & CSP Solar, Geothermal, and Wind) don't begin to compare to the incredible breakthroughs and advantages of IAS solar technology!

Would you personally prefer to remain part of the status quo, or would you prefer to play an active role in the solution...a solution that could ultimately lead to a cleaner, healthier, more pristine environment, conservation of our natural water resources, and ultimately, the end of dependence on foreign oil and fossil fuels for our nation?

We’d like to now ask you to revisit the questions we referenced at the conclusion of our home page video. As you recall, after reviewing the information in our website, we recommended you ask yourself, “What’s the downside?”, and alternately, “What’s the upside?” We hope we’ve afforded you enough information to help you make an informed, intelligent decision. Furthermore, we believe your answers to these two questions will make this one of the easiest decisions of your life, one that potentially has life-changing implications for you and your family! But don't delay even a day. Others are already aggressively pursuing this opportunity. Don't be one of the sideliners who will be left to say, "If only I had....."

The best opportunities in this economy, opportunities that produce dozens or even hundreds of millionaires, are ones where the window remains open only a very short time, possibly less than a year. Those who are prompt and decisive in seizing and fully capitalizing on these opportunities are the ones who typically achieve financial freedom, and with freedom and added resources comes the chance to leave a lasting legacy to bless the lives of others. YOU could discover your legacy. We urge YOU to ACT NOW!

Once again, thank you for the gift of your most valuable resource, your time!  We are truly humble that you decided to invest it with us. We look forward to hopefully getting to know you on a personal basis after you've become a member of our elite 7 Figure Legacy family! Good luck to you in your personal and business pursuits, whatever direction they take you in!

            
The Owners of Sun Power Solutions, LLC, DBA SunPowerAssociates.com

Salt Lake City, UT
November 23, 2010



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April 13, 2010

Filed Under: GENERAL INFORMATION