rapower pres 01-20

Why does the FED. GOV. give tax credits? : 

Why does the FED. GOV. give tax credits? Here are the applicable IRS forms for a Lens transaction to qualify: FIRST-IRS Form 3468 Investment Tax Credit REQUIRMENTS (WE HAVE THE PRODUCT!) Sec. Line 2b solar equipment, 2 types: 1-Solar to illuminate the inside of a structure (we create electricity for lighting.) 2-Equipment that: A -generate electricity (KSL TV SPOT) see steam turbine spin and turn generator(SEE TURBINE SPIN), B –Heat or cool a structure or (See Lens Demonstration iaus.com or repower3.com),C- Provide Solar Process to heat, but not a swimming pool (see lens melting items),WE HIT ALL 3! only one needed to qualify! 1

SECOND- IRS Form 3800 General Business Credit : 

SECOND- IRS Form 3800 General Business Credit The unit cost is $3,000 with $1050 down and the $1950 financed over 20 years and paid only with the power $ generated. Credit is taken this current year credit, 5 year Carry back and Carry forward unused Credit 20 years. Sept 27th 2010 Bill HR 5297 Small Business Jobs and Credit, Title 2, Subtitle A, Part 1 Section 2012 = 5 year carry back for federal tax credits, Section 2013 AMT, Alternate Minimum Tax does not apply to Energy Tax credits. 2

THIRD- IRS Form 4562 Depreciation and Amortization : 

THIRD- IRS Form 4562 Depreciation and Amortization Line 19a Certain energy property specific in section 168(e)(3)(B)(vi) ( Solar) As of Mid Dec. 2010 you receive 100% DEPRECIATION! THRU DEC. 2011. Please give me a call if you or your accountant needs further info; Roger Hamblin, rapower3.com, 435-668-7212, rogham@infowest.com ID # rogham 3

"Dependence on foreign oil is America’s Achilles heel.“ The Institute for the Analysis of Global Security in Washington. : 

Almost everything we buy, sell, or produce is in some way dependent on energy in one form or another. 4 "Dependence on foreign oil is America’s Achilles heel.“ The Institute for the Analysis of Global Security in Washington.

we can’t drill ourselves out of THIS PROBLEM : 

The system has reached its limit. Today's oil use outpaces new oil discoveries. 5 we can’t drill ourselves out of THIS PROBLEM

Our dependency on foreign oil will take us from a recession to a depression : 

6 Our dependency on foreign oil will take us from a recession to a depression Year 2016: gas projected to hit $10 gallon

GAS $5 : 

US $5 a Gallon? Brace Yourselves for High Gas Prices Says Ex-Shell CEO John Hofmeister, former president of Shell Oil, warned this week that Americans could be paying as much as $5 for a single gallon of gasoline by 2012. “I’m predicting actually the worst outcome over the next two years which takes us to 2012 with higher gasoline price,” Hofmeister told Platt’s Energy Week television, citing increasing global demand for oil. CNN Money reports that while the price of gas is surely on the rise, it may not be quite as bad as Hofmeister predicts: Tom Kloza, chief oil analyst with Oil Price Information Service says Americans will see gasoline prices hit the $5 a gallon mark in the next decade, but not by 2012. “That wolf is out there and it’s going to be at the door…I agree with him that we’ll see those numbers at some point this decade but not yet.” Kloza said. “The demand is still sluggish enough in some of the mature economies.” Gasoline prices have been steadily rising. Last week, gas prices crossed the $3 mark for the first time since October 2008. According to AAA figures, prices are up 4% from a month ago and 16% from the $2.585 average a year ago. A study from the Oil Price Information Service estimates drivers will spend $305 on gasoline in December. According to the study, fuel prices are up 13.6% from last December and 76% higher from December 2008. 7 GAS $5

Lost revenue due to our oil dependency : 

One billion dollars per day to purchase foreign oil. Close to a trillion dollars annually in total lost revenue. Over one million lost jobs. Hostile oil rich nations are cannibalizing our country at a rapid pace with our own money. 8 Lost revenue due to our oil dependency

5 reasons business needs to go green! : 

5 reasons business needs to go green! 1-MAKE MONEY USING OTHER PEOPLES MONEY, CREATIVE FINANCE OPTIONS: - FEDERAL ENERGY TAX CREDITS 2-COMPETITIVE ADVANTAGE OVER COMPETIORS. - CUSTOMERS ARE STARTING TO DEMAND IT ALONG WITH CITY PLANNERS 3-COSTS ARE ON THE RISE WITH NO END IN SITE. -CALIFORNIA 20 % MANDATE USAGE TO BE PASSED DOWN, WE CAN HEDGE OUR BETS. FOREIGN OIL AT $100 TO REACH $200 BY 2025. DOUBLE COSTS! 4- GREEN ENERGY IS NO LONGER A TREND, IT’S A REQUIREMENT FOR BUSINESS LONGEVITY. 5-INTERNATIONAL AUTOMATED SYSTEMS, A FRIENDLY PARTNER WITH THE PRODUCTS NEEDED TO EXECUTE ALL REQUIREMENTS OF THE JOB. 9

IAUS-SOLAR- Bio mass : 

IAUS-SOLAR- Bio mass “WE ARE THE WELL THAT NEVER RUNS DRY”

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International Automated Systems (IAS): a publicly traded company with the rights to many patented technologies, have spent the last ten years developing a solar technology that will harness the Sun’s energy for: : 

12 Electrical Production Desalination Industrial Processes Waste treatment Renewable Fuel , Bio Mass International Automated Systems (IAS): a publicly traded company with the rights to many patented technologies, have spent the last ten years developing a solar technology that will harness the Sun’s energy for: The Right Technology at the Right Time

WE ARE A DIVERSE ENERGY COMPANY : 

WE ARE A DIVERSE ENERGY COMPANY WE HAVE SEVERAL LINES OF PRODUCTS FROM ADVANCED THERMAL SOLAR, BIO MASS, WITH PATTEND PENDINGS IN BLADELESS TURBINES, SUN TRACKING SYSTEMS, HEAT EXCHANGERS, HIGH TEMPATURE SOLAR RECIEVERS, THERMOL SOLAR LENS , FUTURE BATTERY TECHNOLOGY, ADVANCED CURCUIT DESIGN, THE LIST GOES ON. ENVIROMENATALY FRIENDLY PRODUCTS WITH THE LEAST AMOUNT OF INPACT. IAS QUALIFIES FOR FEDERAL TAX CREDITS BECAUSE OF ITS PRODUCTS. MEET THE PRODUCTION DEMAND PLACED UPON IT. 13

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Bladeless turbine : 

Bladeless turbine 19

IAUS’s Bladeless Turbine : 

IAUS’s Bladeless Turbine Traditional turbine performance relies upon the environment within its blade chambers. Super-heated, high velocity steam particles are continuously striking the titanium turbine blades to turn the shaft. If steam condenses on the blades, a sharp drop in efficiency and damage to the turbine can result. Traditional multi-stage turbines require dry, high-quality steam. IAUS's new turbine is structurally unaffected by low quality steam. It blows the energy away from its components instead of on them to turn the shaft. It is smaller than traditional turbines, less expensive, and requires very little maintenance. Unlike traditional turbines, IAUS’s turbine can operate without corrosion or system failure on both high quality and low quality steam. 20

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21 PATENTED TURBINE: RUNNING ON GEOTHERMAL WELL

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CONCENTRATOR Heat exchanger : 

CONCENTRATOR Heat exchanger 28 New Solar Receiver with Concentrator & Movable Heat Exchanger

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New concentrator and heat exchanger- This is the new heat exchanger design featuring the concentrator with the new heat exchanger and the rotation mechanism. The top portion is the concentrator (Parabolic) which takes the incoming rays from the lens and further concentrates the sun’s rays which also increases the temperatures that hit the heat exchanger portion. The heat exchanger rotates to control the temperature at any given point on the heat exchanger. The rotation also eliminates hot spots on the heat exchanger reducing the chance of melting or burning the heat exchanger. This also provides a more even temperature exchange between the heat exchanger and the heat absorbing medium inside. This heat concentrator and heat exchanger combination also reduces the infrared radiation coming off of the heat exchanger. 29

THE NEW HEAT EXCHANGER : 

THE NEW HEAT EXCHANGER 32

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Tax Credit? Depreciation? 33 An allowed “dollar for dollar” deduction that can be subtracted from your income tax. If you are entitled to a $3,000 credit, and your income tax would otherwise be $3,000, the credit would reduce the tax due to zero! YOU MAY GO BACK 5 YEAR & RECAPTURE AND FORWARD 20 YEARS Depreciation is an income tax deduction that allows a taxpayer to recover the cost of the property used in business or in an income producing activity. It decreases your income by the amount of the property purchased. 100% FOR 2011, YES 100%

EXAMPLE: : 

EXAMPLE: 34 Total Cost ……………………………….……………….…………………………= $3000 Down payment ($100 dollars per month x 12 months) ……...…………….= -$1200 $1050 if cash down Government 30% tax credit ( $3000 x 0.30 )…………………………= +$900 Depreciation (Total for Equipment : 25% Tax Bracket)……...........=+$750 Total: +1650 First year revenue………..=+$450 Income from property ($120 per year x 5 years)……………........….…..….= +$600 Income from property ($40 per year x 30 years)………………….……..… = +$1200 -The balance of the $3000 ($1,800) is paid from the electricity sold and only when sold approximately $80 per year until the unit is paid off. -Therefore NO out of pocket expenses. $

IRS FORM 3468,3800,4562 : 

IRS FORM 3468,3800,4562 Summary: IRS allows a 30% Tax Credit on Solar Energy Property. You will need IRS Forms 3468,3800 & 4562 Transfer your 30% Tax Credit amount from Form 3800 to your 1040 Form line 53-a IRS allows the Tax Credit to be applied against your Alternative Minimum Tax (AMT) IRS allows you to Carry Back your Solar Tax Credit FIVE years and to go forward twenty years, 100% depreciation thru Dec. 2011! This legislation stays in effect until the end of 2016

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15,000 4,500

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4,500

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6,375

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6,375 1,275 7,650

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TAX BENEFITS: DEPRECIATION Summary: IRS allows a 100% Special Depreciation on your Solar Property in the first year:Use IRS Form 4562: Part II line 14 Put the total depreciation on Schedule C Part II line 13 Transfer the total from Schedule C to your 1040 Form line 12 This amazing benefit through 2010 is part of the ARRA (American Recovery and Reinvestment Act) section 179 legislation On Sept. 27, 2010, President Obama signed the Small Business Jobs Act (H.R. 5297) into law, reinstating the 50 percent depreciation bonus for 2010 (retroactive to the beginning of the year) and increasing Sec. 179 expensing levels to $500,000 (and the phase-out threshold amount to $2 million) for 2010 and 2011. DEPRECIATION The following information is copied directly from the irs.org website: http://www.irs.gov/newsroom/article/0,,id=208318,00.html This can be found by doing a search entitled "bonus depreciation 40

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ACTUAL 2009 RETURN

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7,650 7,650

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7,650

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4,500 3,856 4,500 0 31,250 not 38,900 $614 Difference Recoverable Carryback or carry forward

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0 5,000 5,000 5,000

TAX BENEFITS: FINER POINTS : 

TAX BENEFITS: FINER POINTS CHECK WITH YOUR ACCOUNTANT Basic Strategy: Determine how much you expect to totally pay the IRS. For example, let’s say after your expected refund, if any, the amount you will have to pay or have already paid is $7,000. One reasonable strategy would be to purchase five systems. Total price = $15,000. Total down = $5,250. The IRS will give you a 30% = $4,500 plus the value of the in-pocket 60% depreciation money (assuming 28% tax bracket) = $1,963. TOTAL BACK FROM IRS = $6,463. So you made money. Plus, you get the rest of the depreciation over the next five years. You could also get one more system and get all $7,000 back. 47

Carryback Strategy: : 

Carryback Strategy: The IRS allows you to go back 5 years and reclaim what you paid in federal taxes. If that means your 2006-2010 tax years, then you must wait until you fill out your 2011 taxes in Feb.-Mar. of 2011. You take what you can for 2011 as far as tax credits and then you can amend your 2006-2010 taxes and get some or all of what you paid. In the above example, if the tax situation was the same, you could purchase 12 systems and get back approximately $6,000 from say 2006. Kind of like lost money found. 48

Going Forward Strategy: : 

Going Forward Strategy: The IRS allows you to go forward twenty years in taking your solar tax credits. You can do the same basic strategy every year until the end of 2016 and/or you might consider purchasing more systems to maximize the twenty-year rule. 49

Quarterly Tax Strategy: Multiple Entities Strategy: : 

Quarterly Tax Strategy: Multiple Entities Strategy: Many taxpayers are required to pay their taxes on a quarterly basis. Therefore, consider purchasing a specific number of systems every quarter instead of the quarterly IRS payments. The same strategy as above can be used. Some taxpayers have ownership in multiple entities. You are allowed to purchase systems in more than one entity as long as you pay federal taxes for that entity and have a federal identification number. Same strategies apply as above. 50

Multiple Entities Strategy: : 

Multiple Entities Strategy: Some taxpayers have ownership in multiple entities. You are allowed to purchase systems in more than one entity as long as you pay federal taxes for that entity and have a federal identification number. Same strategies apply as above. 51

The Big Amount Rule: : 

The Big Amount Rule: The IRS has a rule on the amount of solar tax credits that can be taken in any given year. You get all of the first $25,000 in tax credits. Benefits from depreciation are not counted in this figure. After $25,000, you can claim 25% of the amount in tax credits due you. For example, lets say you had $75,000 in tax credits. You get $25,000 plus 25% of the balance of $50,000 which is $12,500. So for that year, you get $37,500 in tax credits and will have to wait until next year to get more of what is due you. If you have a lot of taxes to pay in the hundreds of thousands of dollars, then you and your accountant can entertain a number of interesting strategies as you consider the huge benefits of the 50% bonus depreciation rule. 52

TAX ATTORNEY OPINION LETTER : 

TAX ATTORNEY OPINION LETTER December 1, 2010 Re.: Potential tax advantages. Dear Potential RaPower-3 Customer, To help you, as a taxpayer, understand the possible tax saving benefits of purchasing energy equipment through RaPower-3, we have assembled the following information so that you can consult with your own tax professional about the potential tax advantages of entering the energy market by owning RaPower-3 energy equipment. With the purchase of Rapower-3 Energy Equipment, there are four possible ways to reduce tax liability: ·         energy credits; ·         depreciation; ·         § 179 costs, ·         deductions and expenses. Depending on your situation, all four approaches may apply to you. Below is a discussion regarding each possible benefit for you to review with your own tax professional and determine the applicability to your own unique financial situation. NEXT PART OF LETTER 53

I.                   Energy credit -- Internal Revenue Code §§ 45 & 48 : 

I.                   Energy credit -- Internal Revenue Code §§ 45 & 48 Through tax code, the Federal Government has implemented several programs to incentivize renewable energy projects. One such program is found in IRC § 45 in conjunction with IRC § 48. Simply stated the sections provide for a credit of 30% the basis (essentially the purchase price) of energy equipment that is placed in service during the taxable year. For energy equipment that has not been placed in service, such as equipment still being manufactured, a taxpayer can elect to take a portion of the credit if the equipment is a Qualified Progress Expenditure Property ("QPEP"). QPEP is property being constructed by or for the taxpayer and which (a) has a normal construction period of two years or more, and (b) it is reasonable to believe that the property will qualify for the energy credit (from IRC § 48) once it is placed in service. NEXT PART 54

claim the 30% credit : 

claim the 30% credit An owner of QPEP may claim the 30% credit on: (a) the amount paid towards the purchase (during the tax year) to another person for the construction of QPEP, or (b) an amount attributable to the portion of the QPEP that is completed (during the tax year); whichever is less. Detailed language of this Energy Credit can be found in the United States Code, Title 26, §§ 45 through 48. Other considerations may apply, so be sure to talk to your tax professional about how you can personally qualify for this energy tax credit. NEXT PART 55

II. Depreciation : 

II. Depreciation Depreciation is an annual income tax deduction that could allow an owner of energy equipment to recover the purchase cost. The tax code acknowledges that hard assets such as energy equipment wear out and lose value over time. Thus, depreciations is an allowance that accrues over time for the wear and tear, deterioration, or obsolescence of the property. You can depreciate most types of tangible property, such as buildings, machinery, vehicles, and equipment. To be depreciable, the property must meet all of the following requirements: it must be property you own; it must be used in your business or income-producing activity; it must have a determinable useful life; and it must be expected to last more than one year after being placed in service. NEXT PART 56

What can you do as a tax payer: : 

What can you do as a tax payer: A taxpayer can start claiming depreciation of an asset as soon as his or her property is placed in service. Property is placed in service when it is ready and available for a specific use, whether in a business activity, an income-producing activity, a tax-exempt activity, or a personal activity. This does not mean you have to be using the property, just that it is ready and available for its specific use. If the equipment is ready and available for ANY income producing activity, including leasing it out for advertising purposes, the owner may start claiming depreciation of the asset. NEXT PART 57

III.             Section 179 Expenses : 

III.             Section 179 Expenses A qualifying taxpayer may treat the costs (such as maintenance, upkeep, and repairs) of his or her energy property as an expense beginning the year the property is placed in service. This is in addition to claiming the depreciation of the property as discussed above. In 2010, the Federal Government through the Small Business Jobs Act (SBJA) increased the cap of Section 179 expenses so that certain business can claim up to $500,000 beginning in the 2010 and 2011 tax years. To qualify for the section 179 deduction, your property must have been acquired for use in your trade or business. Property you acquire only for the production of income, such as investment property, rental property (if renting property is not your trade or business), and property that produces royalties, does not qualify. NEXT PART 58

Deductions and Losses : 

Deductions and Losses .             So long as a taxpayer materially participates in a business activity, the taxpayer may deduct the losses from such activity against investment income. Moreover, even if the taxpayer does not materially participate, any losses may be deducted if the taxpayer has passive income from other sources to offset the passive losses. For a taxpayer to materially participate in a business activity, the payer must work on a regular, continuous and substantial basis in the activity. I.R.C. § 469 (h)(1) lays out several tests to determine material participation and the taxpayer only has to meet one of the possible requirements. The tests are as follows: NEXT PART 59

Work the business : 

Work the business a.      The taxpayer does substantially all the work in the activity. b.      The taxpayer works more than 100 hours in the activity during the year and no one else works more than the taxpayer. c.       The taxpayer works 500 hours or more during the year in the activity. d.     Based on all of the facts and circumstances, the taxpayer participates in the activity on a regular, continuous, and substantial basis during such year. This test only applies if the taxpayer works at least 100 hours in the activity, no one else works more hours than the taxpayer in the activity, and no one else receives compensation for managing the activity. NEXT PART 60

Simply stated: : 

Simply stated: Stated simply, if you do most of the work in the business using the RaPower-3 energy equipment, any losses associated with your business will be non-passive and can be deducted without limitation. Generally any work you do in connection with your business will be considered participation. In a multi-level marketing structure, participation would include any activity to increase the productivity of other individuals engaged in sales such as recruiting, training, motivating and counseling such individuals. Other ways to participate in your business would include meeting and counseling with the operator of the equipment, negotiating sale and distribution of energy, reviewing productivity and costs, among others. NEXT PART 61

V. Conclusion : 

V. Conclusion Right now, the government is enacting programs geared to foster and encourage development of energy sources. RaPower-3's equipment could allow you to enter the energy market and capitalize on those government incentives. This is only a brief overview of some of the possibilities that may be available to new owners of RaPower-3 energy equipment. Although we have tried to ensure our information is accurate and useful, we are not acting as your attorney and the above is offered to you for informational purposes only. We recommend that you consult your own lawyer and tax professional for particularized assurance that the information applies to your situation. Sincerely, Law Center, P.C. NEXT PART 62

DISCLAIMER: : 

DISCLAIMER: Law Center, P.C. as an institution or its attorneys are not offering you advice on any personal income tax requirements or issues. The purpose of this communication for general information only and does not represent personal tax advice either expresses or implied. You are encouraged to seek professional tax advice for personal or corporate income tax questions and assistance. FINISHED WITH THE OPINION LETTER 63

What if I want to let other people know about this? : 

What if I want to let other people know about this? It is illegal to pay referral fees. But Members can receive commissions. FIRST PAYMENT ON UNIT = MEMBER A commission is paid on each unit sponsored. This is legal. 64

Now you have started your own business with basically zero start up cost : 

Now you have started your own business with basically zero start up cost A 5% commission each unit down payment directly sponsored. Based on number of units sold that month. Residual income from units sold Each person sponsored is now a team member. Like with all businesses, the more sales your team does, the more income you make. IT WILL REQUIRE EFFORT TO SUCCEED 65

Team work: The road to success : 

There are no further requirements in order to remain a member but for those who would like to be more proactive there are added financial benefits. Your team will consist of 6 levels, not including yourself. Level 1 will be those people you directly sponsor and Levels 2-6 are all those who are sponsored under them up to 6 levels. 66 Team work: The road to success

How many units are needed? : 

1 GW > 1.5 million units ≈ 100 million in commissions This would just barely keep up with California’s yearly electricity growth demand. 67 How many units are needed?

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68 TAX MONEY TO IRS = $ ZERO TAX MONEY FOR SOLAR = $$$

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EVEN MORE MEMBER BENEFITS BUT 69 Please give us your contact information and a member will meet with you soon.

Solar : the well that never runs Dry : 

70 Solar : the well that never runs Dry Every hour the sun radiates more free energy than the entire human population uses in a whole year.

ENERGY MARKET CONTINUES TO Increase : 

Demand for energy in the USA increases at about 3.5% per year. California alone requires about 1 GW of new electricity each year. California and many other states now require a certain percentage of their electricity must be renewable. 71 ENERGY MARKET CONTINUES TO Increase

“In this world nothing can be said to be certain, except death and taxes.” — Benjamin Franklin : 

72 “In this world nothing can be said to be certain, except death and taxes.” — Benjamin Franklin