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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 2012
and 2013 equal to 50% of the first $25,000 of the aggregate cost of "qualifying residential
energy efficient property" that is 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 property for the residences of certain elderly people; and to provide for4
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) For tax years beginning during 2012 and 2013, there shall be a9
credit against individual income tax for the cost of purchase, construction, or10
installation of qualifying residential energy efficient property 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 qualifying residential energy14
efficient property already installed or constructed, or where such qualifying15
property is purchased, constructed, or installed at an existing home.16
B.(1) The credit shall be equal to fifty percent of up to twenty-five17 SB NO. 255
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thousand dollars of the total aggregate cost of qualifying residential energy1
efficient property, including installation costs, that are purchased and installed2
in the Louisiana residence of a qualified elderly person. The credit may be used3
in addition to any federal tax credits earned for the same items. No taxpayer4
may receive more than twelve thousand five hundred dollars of credit pursuant5
to this Section per tax year and a taxpayer shall not receive any other state tax6
credit, exemption, exclusion, rebate or any other tax benefit for property or7
services for which the taxpayer has received a tax credit under this Section.8
(2) In the case of a taxpayer who purchases and installs or constructs9
qualifying residential energy efficient property in a residence, the tax credit10
shall be claimed on the return for the taxable year in which such property is11
placed in service. In the case of a taxpayer who purchases a newly constructed12
home with such property, the tax credit shall be claimed on the return for the13
taxable year in which the act of sale takes place.14
C. Notwithstanding any other provision of law to the contrary, any15
excess of allowable credit over the tax liability against which the credit may be16
applied, as provided in this Section, shall constitute an overpayment, as defined17
in R.S. 47:1621(A), and the secretary shall make a refund of such overpayment18
from the current collections of the taxes imposed by Chapter 1 or Chapter 5 of19
Subtitle II of this Title, together with interest as provided in R.S. 47:1624. The20
right to a credit or refund of any such overpayment shall not be subject to the21
requirements of R.S. 47:1621(B). All credits and refunds, together with interest22
thereon, must be paid or disallowed within one year of receipt by the secretary23
of any such claim for refund or credit. Failure of the secretary to pay or24
disallow, in whole or in part, any claim for a credit or a refund shall entitle the25
aggrieved taxpayer to proceed with the remedies provided in R.S. 47:1625.26
D. As used in this Section:27
(1) "Qualified elderly person" means an individual sixty-five years of age28
or older and who is a resident of Louisiana, if such individual's adjusted gross29 SB NO. 255
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income would make the taxpayer eligible for the special assessment level1
provided for in Article VII, Section 18(G) of the Constitution of Louisiana for2
the tax year in which the credit is claimed.3
(2) "Qualifying residential energy efficient property" means energy4
efficient refrigerators, freezers, clothes washers, dishwashers, tankless water5
heaters, storage water heaters, room air conditioners, central air conditioners,6
air source heat pumps, furnaces, exterior windows and exterior doors. All7
qualifying residential energy efficient property must have earned the Energy8
Star label. All qualifying residential energy efficient property must be installed9
at the Louisiana residence that is either owned and occupied or rented and10
occupied by a qualified elderly person. The term shall not include wind energy11
systems or solar energy systems provided for in R.S. 47:6030.12
Section 2. This Act shall become effective upon signature by the governor or, if not13
signed by the governor, upon expiration of the time for bills to become law without signature14
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If15
vetoed by the governor and subsequently approved by the legislature, this Act shall become16
effective on the day following such approval.17
The original instrument was prepared by Riley Boudreaux. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Ann S. Brown.
DIGEST
Willard-Lewis (SB 255)
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
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 for tax years
beginning during 2012 and 2013; 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 property", including installation costs, that are SB NO. 255
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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 $12,500 of credit per tax year 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 property" is defined as energy efficient refrigerators,
freezers, clothes washers, dishwashers, tankless water heaters, storage water heaters, room
air conditioners, central air conditioners, air source heat pumps, furnaces, exterior windows
and exterior doors. All qualifying residential energy efficient property must have earned the
Energy Star label. All qualifying residential energy efficient property must be installed at
the Louisiana residence that is either owned and occupied or rented and occupied by a
qualified elderly person. It does not include wind energy systems or solar energy systems.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 47:6030.1)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the original bill.
1. Changes the proposed law to specify the types of "residential energy efficient
appliances, equipment, systems, or constructions" which are eligible for the
credit as set forth in the Digest above and deletes the definition that defines
such property as those costing in excess of an aggregate total of two hundred
dollars, the construction or installation of which will result in material
savings in energy used for heating and cooling a Louisiana residence owned
or rented and occupied by a qualified elderly person, all as determined by the
DNR to be forth in regulations adopted pursuant to the APA.
2. Authorizes the credit for 2 calendar years.
Senate Floor Amendments to engrossed bill.
1. Specifically names the type of appliances, equipment, systems, or
construction materials which are eligible for the credit as set forth in
proposed law.
2. Changes the requirement of the qualifying residential energy efficient
property from must meet or exceed the Energy Star program requirements to
must have earned the Energy Star label.
3. Technical corrections.