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Regular Session, 2011 APPROVED
SENATE STUDY REQUEST NO. 1
BY SENATOR WILLARD-LEWIS
A STUDY REQUEST
To request the Senate Committee on Revenue and Fiscal Affairs to study a tax credit against
individual state income tax for the amount of sales tax paid for certain residential
home building or remodeling.
WHEREAS, Senate Bill No. 245 of the 2011 Regular Session would have provided
for a tax credit against individual state income tax for the amount of sales tax paid by
homeowners when purchasing green materials for residential home building or remodeling;
and
WHEREAS, it has been determined that sustainable building solutions help to seal
the building envelope to increase energy efficiency, enhance bulk water holdout, and
improve overall comfort; and
WHEREAS, certain programs allow for low volatile organic compound (VOC)
materials to reduce the overall environmental impact of structures; and
WHEREAS, building or remodeling using green materials helps to save energy,
assists in reducing the total carbon footprint of homes and buildings, lowers operational
costs, and can help meet the certification requirements of the Leadership in Energy and
Environmental Design by the United States Green Building Council; and
WHEREAS, the study of a tax credit should include a credit for green materials and
supplies purchased in Louisiana; and
WHEREAS, potential credits could be considered against Louisiana individual
income tax for sales taxes paid by a homeowner for green materials and supplies purchased
in Louisiana to be used in residential building, rebuilding, or remodeling; and
WHEREAS, the credit for each taxable year could be for the lesser of two hundred
and fifty dollars or the total amount of the state sales tax paid by the homeowner for the
purchase of green materials and supplies from Louisiana suppliers and used for residential
home purposes; and SSR NO. 1 APPROVED
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WHEREAS, this credit could be taken as a credit against the applicable individuals
state income tax credit in the taxable period in which the sales taxes are paid; and
WHEREAS, the total credit should not exceed the total income tax liability for a
taxable year for each individual; and
WHEREAS, for the purpose of this study, the following definitions should apply:
(1) "Homeowner" means a person who resides and owns their home in Louisiana.
(2) "Resident" means a person living in a home in Louisiana on a long-term basis.
(3) "Green materials" means any plant material that is separated at the point of
generation containing no greater than one percent of physical contaminants by weight, and
meets the requirements of the United States Green Building Council.
(4) "Building" and "rebuilding" means to make extensive structural repairs.
(5) "Remodeling" means to alter the structure, style, or form of a home; and
WHEREAS, Senate Bill No. 245 was formulated by reviewing the standards for
green building requirements by the United States Green Building Council and what credit
would have been applicable to tax years beginning on or after January 1, 2012, and ending
on or before December 31, 2013.
THEREFORE, the Senate of the Legislature of Louisiana requests that the Senate
Committee on Revenue and Fiscal Affairs study the appropriate manner in which to provide
a tax credit against individual state income tax for the amount of sales tax paid by
homeowners when purchasing green materials for residential home building or remodeling
may be provided and develop recommendations to be submitted to the Senate before the
commencement of the 2012 Regular Session.