Tax Credit for Solar Energy Systems on Residential Property (Corporate) (Louisiana)

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Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Louisiana

Name Tax Credit for Solar Energy Systems on Residential Property (Corporate)
Incentive Type Corporate Tax Credit
Applicable Sector Commercial, Residential
Eligible Technologies Solar Water Heat, Solar Space Heat, Photovoltaics
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount Customer owned systems installed between January 1, 2014 and January 1, 2018 are eligible for 50% of the first 25,000 of the cost of each system

Leased systems installed between July 1, 2014 and June 30, 2015: 38% of the first 21,000 of the cost of each system or 3.50 per watt for a maximum of 7,980
Leased systems installed between July 1, 2015 and December 31, 2017: 38% of the first 12,000 of the cost of each system or 2.00 per watt for a maximum of 4,560


Carryover Provisions Excess credit is refundable


Eligible System Size Leased systems: 6 kW maximum

Equipment Requirements Electrical equipment must be UL-listed. Solar-thermal equipment must be OG-300 certified

All systems must be compliant with the requirements of the federal American Recovery and Reinvestment Act (ARRA)

Start Date 2008-01-01
Expiration Date 2017-12-31



Installation Requirements Systems must be sold by and installed by a person who is licensed by the Louisiana State Licensing Board for Contractors


Maximum Incentive 12,500 per installed system; 1 installed system per residence










Program Administrator Louisiana Department of Revenue
Website http://www.revenue.louisiana.gov/sections/faq/default.aspx?type=GEN&cat=WIND
Date added to DSIRE 2007-07-18
Last DSIRE Review 2014-08-05



References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Summary

Note: HB 705 of 2013 phases out this tax credit until its termination at the beginning of 2018 in addition to halting credits for wind energy systems and adding special provisions for leased systems. The Louisiana Department of Revenue (LDR) has developed rules to carry out mandates of the legislation available here.


Louisiana provides a tax credit for solar energy systems purchased and installed on or after January 1, 2008 and before January 1, 2018. The credit may be applied to personal, corporate or franchise taxes, depending on the entity which purchases and installs the system, but the system must be installed at a single-family residence to be eligible (systems installed at residential rental apartments were made ineligible by HB 705 of 2013). HB 858, enacted in July 2009, extended the tax credit to all taxpayers that purchase and install systems. (The credit was previously only available to residential property owners). Only one credit may be taken per system, so if the property is sold, the taxpayer who originally claimed the credit must disclose this, as the new owner will not be eligible for another tax credit on the same system. Each residence is limited to just one credit. A second system installed at the same residence is ineligible for a credit. The tax credit may be applied both to solar-electric systems (photovoltaic systems) and solar-thermal systems, when the energy is used for space heating, space cooling or water heating.


Customer Owned Systems


For systems purchased between Januay 1, 2014 and January 1, 2018, the credit is equal to 50% of the first $25,000 of the cost of each system, including installation costs. The credit must be fully claimed in the taxable year in which the system is installed and placed in service. Equipment added at a later date cannot utilize any existing system components in order to qualify for the tax credit. Any excess credit which exceeds the taxpayer's liabilities for that year shall be treated as an overpayment, and the DOR will issue a refund for the remaining amount within one year of receiving the claim.


For photovoltaic (PV) systems, the tax credit applies to AC or DC generation systems which are grid-connected, net-metered systems (with or without battery backup) and stand-alone systems. Solar-thermal systems must be used for the primary purpose of heating water, space heating or space cooling.


Electrical equipment must be tested and certified by a Federal Occupational Safety and Health Administration (OSHA) nationally recognized testing laboratory and installed in compliance with all applicable building and electrical codes. Solar thermal equipment must be certified to SRCC OG-300 by either SRCC or by listing agency such as International Association of Plumbing and Mechanical Officials (IAPMO) and installed in compliance with all applicable building and plumbing codes. Installations must be performed by a licensed contractor, the owner of the residence, or by a person who has received certification by a technical college in the installation of such systems. In order to claim a tax credit for a wind or solar energy system all components must be installed at the same time as the system.


This tax credit may be combined with any federal tax incentive, but it may not be combined with any other state tax incentive. Whenever additional incentives such as cash rebates, prizes or gift certificates are offered in addition to the tax credit, the eligible cost must be reduced by the value of the additional incentive received.


Leased Systems


Systems leased by a third party and used at a residence can qualify for a tax credit, but there are additional provisions in the law that apply to these systems. For leased systems that are installed after December 31, 2013, the value of the credit will be reduced to 38% of the first $25,000 of the cost of each system. Additionally, leased systems can be no larger than 6 kilowatts (kW). The law also sets maximum system costs for leased systems. A leased system can claim system costs that do not exceed these limits depending on the year it is placed in service:


  • Placed in service between 7/1/13 - 6/30/14: $4.50 per watt with $12,500 limit
  • Placed in service between 7/1/14 - 6/30/15: $3.50 per watt with $9,500 limit
  • Placed in service between 7/1/15 - 12/31/17: $2.00 per watt with $4,560 limit


Incentive Contact

Contact Name Public Information - LA DOR
Department LA Department of Revenue

Address PO Box 201

Place Baton Rouge, Louisiana
Zip/Postal Code 70821-0201
Phone (225) 219-0102



Website http://www.revenue.louisiana.gov
     
     

Authorities (Please contact the if there are any file problems.)

Authority 1: LAC 61:I.1907
Date Effective 2008-01-01



Authority 2: Louisiana Department of Revenue Information Bulletin No. 13-026
Date Effective 2013-09-24



Authority 3: La. R.S. 47:6030
Date Effective 2008-01-01
Date Enacted 2007-07-10
Expiration Date 2017-12-31

Authority 4: HB 705
Date Effective 2013-07-01
Date Enacted 2013-06-21
Expiration Date 2017-12-31















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"