act131

Solar Tax Credit Changes

On June 19, 2015, House Bill 779 was signed by the governor and became law (Act 131) changing tax credits for systems installed after July 1, 2015 as well as for 2014 credits filed after July 1, 2015.

This means:

  • Systems are eligible for up to $10,000 in tax credits, $2,500 less than the previous $12,500.
  • The maximum amount of credit granted will be determined by whatever is the lesser of 50% of the system cost, $2 per DC watt, or $10,000.
  • Unlike before, DC watts is factored into determining tax credits. This should protect customers and the government from potential fraud committed by companies that overcharge for small systems and then file for the maximum credit.
  • Over the next three years, there is a total of $25 million dollars allocated for solar tax credits.
  • $10 million dollars is allocated for each of the 2016 and 2017 fiscal years with $5 million dollars remaining for the 2018 fiscal year.
  • If the claims filed in 2016 exceed $10 million dollars, remaining claims will be granted from 2017’s $10 million dollars.
  • If the combined $20 million dollars from 2016 and 2017 is exhausted, any remaining claims will be granted from 2018’s $5 million dollars and will be dispersed proportionally based on the number of claims.

What does this mean for you?

With the new law going into effect, it is very important for everyone to file their taxes early this year to hold your place in line for tax credits. We foresee the Louisiana Department of Revenue developing a system to reserve your tax credits. LSES is tracking the development of this system and advocating for the most comprehensive and fairest system possible. We will be sure to keep our members up to date on filing procedures.

If you have any questions, please contact rebecca@lses.org.