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Regular Session, 2011
SENATE BILL NO. 255
BY SENATOR WILLARD-LEWIS
TAX/TAXATION. Grants a refundable "residential energy efficiency tax credit for the
qualified elderly" equal to 50% of up to $25,000 of the total aggregate cost of qualifying
residential energy efficient appliances, equipment, systems, or constructions that are
purchased and installed in the residence of those 65 and older who are income-eligible. (gov
sig)
AN ACT1
To enact R.S. 47:6030.1, relative to tax credits; to grant an individual income tax credit or2
the cost of purchase, installation, or construction of certain residential energy3
efficient appliances, equipment, systems, or constructions for the residences of4
certain elderly people; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 47:6030.1 is hereby enacted to read as follows: 7
ยง6030.1 Residential energy efficiency tax credit for the qualified elderly8
A.(1) There shall be a credit against individual income tax for the cost9
of purchase, construction, or installation of qualifying residential energy10
efficient appliances, equipment, systems, or constructions for the Louisiana11
residence of a qualified elderly person as provided for in this Section.12
(2) The credit may be claimed in cases where the qualified elderly person13
purchases a newly constructed home with such appliances, equipment, systems,14
or constructions already installed or constructed, or where such appliances,15
equipment, systems, or constructions already installed or constructed are16
purchased, constructed, or installed at an existing home.17 SB NO. 255
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B.(1) The credit shall be equal to fifty percent of up to twenty-five1
thousand dollars of the total aggregate cost of qualifying residential energy2
efficient appliances, equipment, systems, or constructions, including installation3
costs, that are purchased and installed in the Louisiana residence of a qualified4
elderly person. The credit may be used in addition to any federal tax credits5
earned for the same items. No taxpayer may receive more than twenty-five6
thousand dollars of credit and a taxpayer shall not receive any other state tax7
credit, exemption, exclusion, rebate or any other tax benefit for property or8
services for which the taxpayer has received a tax credit under this Section.9
(2) In the case of a taxpayer who purchases and installs or constructs10
qualifying residential energy efficient appliances, equipment, systems, or11
constructions in a residence the tax credit shall be claimed on the return for the12
taxable year in which such appliances, equipment, systems, or constructions are13
placed in service. In the case of a taxpayer who purchases a newly constructed14
home with such appliances, equipment, systems, or constructions, the tax credit15
shall be claimed on the return for the taxable year in which the act of sale takes16
place.17
C. Notwithstanding any other provision of law to the contrary, any18
excess of allowable credit over the tax liability against which the credit may be19
applied, as provided in this Section, shall constitute an overpayment, as defined20
in R.S. 47:1621(A), and the secretary shall make a refund of such overpayment21
from the current collections of the taxes imposed by Chapter 1 or Chapter 5 of22
Subtitle II of this Title, together with interest as provided in R.S. 47:1624. The23
right to a credit or refund of any such overpayment shall not be subject to the24
requirements of R.S. 47:1621(B). All credits and refunds, together with interest25
thereof, must be paid or disallowed within one year of receipt by the secretary26
of any such claim for refund or credit. Failure of the secretary to pay or27
disallow, in whole or in part, any claim for a credit or a refund shall entitle the28
aggrieved taxpayer to proceed with the remedies provided in R.S. 47:1625.29 SB NO. 255
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D. As used in this Section:1
(1) "Qualified elderly person" means an individual sixty-five years of age2
or older and who is a resident of Louisiana, if such individual's adjusted gross3
income would make the taxpayer eligible for the special assessment level4
provided for in Article VII, Section 18(G) of the Constitution of Louisiana for5
the tax year in which the credit is claimed.6
(2) "Qualifying residential energy efficient appliances, equipment,7
systems, or constructions" means any appliances, equipment, systems, or8
constructions costing in excess of an aggregate total of two hundred dollars, the9
construction or installation of which will result in material savings in energy10
used for heating and cooling a Louisiana residence owned or rented and11
occupied by a qualified elderly person, all as determined by the Department of12
Natural Resources and initially set forth in rules and regulations adopted by the13
department pursuant to the Administrative Procedure Act by October 1, 2011,14
and as adopted thereafter. The term shall not include wind energy system or15
solar energy systems provided for in R.S. 47:6030.16
Section 2. The provisions of this Act shall be applicable to tax years beginning on17
and after January 1, 2011.18
Section 3. This Act shall become effective upon signature by the governor or, if not19
signed by the governor, upon expiration of the time for bills to become law without signature20
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If21
vetoed by the governor and subsequently approved by the legislature, this Act shall become22
effective on the day following such approval.23
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Riley Boudreaux.
DIGEST
Present law grants a refundable income tax credit equal to 50% of the first $25,000 of the
cost of purchase and installation of a "wind energy system" or a "solar energy system" in a
residence or a residential rental apartment project which is located in the state. The credit
may also be claimed in cases where a resident individual purchases a newly constructed
home with such a system already installed or where such a system is purchased and installed
at an existing home, or where such systems are installed in new or existing apartment SB NO. 255
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projects.
The tax credit must be claimed on the return for the taxable year in which the system is
completed and placed in service or the year in which a newly constructed home or newly
constructed residential rental apartment project with such a system is purchased.
Proposed law grants a similar refundable credit against individual income tax; the
"residential energy efficiency tax credit for the qualified elderly". The credit is equal to 50%
of up to $25,000 of the total aggregate cost of "qualifying residential energy-efficient
appliances, equipment, systems, or constructions", including installation costs, that are
purchased and installed in the Louisiana residence of a "qualified elderly person".
The credit may be used in addition to any federal tax credits earned for the same items. No
taxpayer may receive more than $25,000 of credit and a taxpayer cannot receive any other
state tax credit, exemption, exclusion, rebate or any other tax benefit for property or services
for which the taxpayer has received the tax credit.
"Qualified elderly person" is defined as an individual 65 years of age or older who is a
resident of Louisiana if such individual's adjusted gross income would make him eligible for
the "special assessment level" provided for in Const. Art. VII, Sec. 18(G) (which freezes the
appraised value of homesteads) for the tax year in which the credit is claimed. The eligibility
amount for 2011 is $65,891.43 as shown on the 2010 income tax return. It is adjusted
annually by the Consumer Price Index as reported by the United States Government.
"Qualifying residential energy efficient appliances, equipment, systems, or constructions"
is defined as any appliances, equipment, systems, or constructions costing in excess of an
aggregate total of $200, the construction or installation of which will result in material
savings in energy used for heating and cooling a residence owned or rented and occupied by
a "qualified elderly person", all as determined by the Department of Natural Resources and
initially set forth in rules and regulations adopted by the department pursuant to the APA by
October 1, 2011, and as adopted thereafter. The term does not include the "wind energy
systems" or the "solar energy systems" for which a credit is now provided for in present law.
Applicable to tax years beginning on and after January 1, 2011.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 47:6030.1)