Garland Robinette, Ben Norwood-Tax Attorney for Adams and Reese, LLC  and Scott Oman-Chief Technology Officer for South Coast Solar discuss and clear up the common mis-conception that the LA state solar tax credit is capped at $12,500.

The “solar tax credit bill” from the State of Louisiana says that 50% of the cost of each solar system installed up to $25,000.  They key words are “each system”, and residents can install as many systems as they want up to 25kW. The Louisiana Department of Revenue has further clarified that  “[e]ach residence or apartment project in the state is eligible for tax credits for the number of separate complete solar electric and solar thermal energy systems necessary to ensure that the residence or apartment project is supplied with all of its energy needs.”

Some of the key points of the Louisiana Dept. of Revenue’s rulings on the law are listed below.

1.    Louisiana Revised Statute 47:6030 authorizes an income tax credit for the purchase and installation of solar energy systems by a Louisiana homeowner.
2.    La. R.S. 47:6030(B)(1) provides that the “credit shall be equal to fifty percent of the cost of each wind energy system or solar energy system, including installation costs, that is purchased and    installed on or after January 1, 2008.”
3.    “The credit may be used in addition to any federal tax credits earned for the same system.”  La. R.S. 47:6030(B)(1).
4.    La. R.S. 47:6030(C) provides that the Tax Credit is refundable.
5.    LAC 61:I.1907(C)(1) provides that “[e]ach residence or apartment project in the state is eligible for tax credits for the number of separate complete solar electric and solar thermal energy systems necessary to ensure that the residence or apartment project is supplied with all of its energy needs.”
6.    LAC 61:I.1907 (D)(3) provides that “[e]ligible solar electric systems under the tax credit include grid-connected net metering systems, grid-connected net metering with battery backup, stand alone alternating current (AC) systems, and stand alone direct current (DC) systems designed to produce electrical energy.”
7.    LAC 61:I.1907 (D)(4) provides that “s[]olar thermal systems eligible under the tax credit include systems designed to produce domestic hot water, systems designed to produce thermal energy for use in heating and cooling systems and solar pool heating systems.”

What this all means is that a true 50% of all of the solar energy systems that you install on your home will be covered by our amazing 50% refundable state tax credits.

Written by: Butler Ives