Note 2. Income Taxes

6 Months Ended

Jun. 30, 2011

Income Tax Disclosure [Text Block]

NOTE 2 - INCOME TAXES

Alternate Energy Holdings, Inc. uses the liability method, where deferred tax assets and liabilities are determined based on the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial and income tax reporting purposes.  Alternate Energy Holdings, Inc. incurred net losses in the six months ending June 30, 2011 and 2010 and therefore, has no tax liability.  The deferred tax asset generated by the carry-forward is approximately $13,368,125 at June 30, 2011 and will expire in 2029.

Components of deferred tax assets at June 30, 2011 are as follows:

Deferred tax asset – net operating loss Carry-forwards	$	13,368,125
Valuation Allowance		(13,368,125	)
Net deferred tax asset	$	0

The Company has adopted ASC 740-10 “Income Taxes”. As a result of the assessment the Company has recognized no material tax adjustments to the unrecognized tax benefits.  At the adoption date of January 1, 2008 and as of June 30, 2011, the Company has no unrecognized tax benefits.  By statue, tax years ending December 31, 2010 through 2008 remain open to examination by the major taxing jurisdictions to which the Company is subject.

The reconciliation of the effective income tax rate of the Company to the statutory income tax rate for the fiscal year ended on December 31, 2010 and 2009 is as follows:

	2010			2009
Federal Income Tax Rate		34	%		34	%
State Income Tax Rate		0	%		0	%
Increase in Valuation Allowance		(34	%)		(34	%)
Effective Tax Rate		0	%		0	%