Louisiana

Louisiana provides a tax credit for solar and wind energy systems purchased and installed on or after January 1, 2008. 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 either a residence or a residential rental apartment complex to be eligible. HB 858, enacted in July 2009, extended the tax credit to 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.

This clarification was strengthened when the Louisiana Department of Revenue (DOR) released amended administrative rules in January 2013, which further defined eligible solar-electric energy systems, solar-thermal energy systems and wind energy systems eligible for the credit. The 2013 DOR rules state that regardless of the number of system components installed on each qualifying residence or residential apartment complex, such components shall constitute a single system for each residence or dwelling unit in a residential rental apartment complex for the purposes of the tax 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. The amount of the credit is equal to 50% of the first $25,000 of the cost of each system, including installation costs (unless the taxpayer is installing the system). 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. Eligible wind energy systems include AC or DC electric generation and mechanical wind 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.