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ACT No. 428
Regular Session, 2013
HOUSE BILL NO. 705
BY REPRESENTATIVE PONTI
AN ACT1
To amend and reenact R.S. 47:6030(A) through (D), and (F) and to enact R.S.2
47:6030(B)(3) and (G), relative to tax credits; to repeal the tax credit for wind energy3
systems; to establish a tax credit for certain solar energy systems; to provide4
authorization for a credit against taxes in which the credit can be claimed; to provide5
the manner and time period in which the credit may be claimed; to provide for a6
refund of any credit in excess of the tax liability; to provide for the promulgation of7
rules and regulations; to provide for effectiveness; and to provide for related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 47:6030(A) through (D), and (F) are hereby amended and reenacted10
and R.S. 47:6030(B)(3) and (G) are hereby enacted to read as follows:11
ยง6030. Wind or solar Solar energy systems tax credit12
A.(1) There shall be a credit against the income tax for the cost of purchase13
and installation of a wind energy system or solar energy electric system, a solar14
thermal system, or both any combination of components thereof, hereinafter15
collectively referred to as "system", by a taxpayer at his residence located in this16
state, by the owner of a residential rental apartment project, or by a taxpayer who17
purchases and installs such a system in a residence or a residential rental apartment18
project which is at a single-family residence located in Louisiana. The credit may19
be claimed in cases where the resident individual purchases is allowed if a newly20
constructed home with such a system already installed or where is purchased or if21
such a system is purchased and installed at an existing home, or where such systems22
are installed in new or existing apartment projects. Only one such tax credit shall be23
available for any eligible system. In addition to eligibility requirements provided in24 ENROLLEDHB NO. 705
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Subsection B of this Section, to be eligible for a tax credit, the system shall have1
been sold by and installed by a person who is licensed by the Louisiana State2
Licensing Board for Contractors, and with respect to any system components3
purchased on or after July 1, 2013, the system shall be compliant with the4
requirements of the federal American Recovery and Reinvestment Act (ARRA),5
including but not limited to all major components such as the inverter, racking, and6
solar modules. Each eligible system shall be installed on the property of the7
residence to which the electrical, mechanical, or thermal energy is delivered. With8
respect to each residence, there shall be allowed only one tax credit for the purchase9
and installation of a system and no other tax credit is allowed for any other system10
installed at that residence. The provisions of this Section shall in no way be11
construed or interpreted to allow more than one tax credit authorized under this12
Section, including any tax credit claimed before July 1, 2013, for any residence.13
Once a tax credit authorized pursuant to this Section is claimed by a taxpayer for a14
particular system, that same system shall not be eligible for any other tax credit15
pursuant to this Section. If the residential property or system is sold, the taxpayer16
who claimed the tax credit shall disclose his use of the tax credit to the purchaser.17
(2) Notwithstanding the provisions of Paragraph (1) of this Subsection, any18
system component purchased prior to July 1, 2013, may be incorporated into systems19
that are placed in service prior to January 1, 2014, and such systems shall be eligible20
for the credit authorized by this Section; provided that such credit shall not be21
allowed for such system components unless the purchaser provides to the22
Department of Revenue written documentation of the purchase of such system23
components prior to July 1, 2013.24
B.(1) The credit Purchased systems. The tax credit for the purchase and25
installation of a system at a Louisiana residence or for a system which is already26
installed in a newly constructed home located in Louisiana shall be equal to fifty27
percent of the first twenty-five thousand dollars of the cost of each wind energy28
system or solar energy a system, including installation costs, that is purchased and29
installed on or after January 1, 2008, and before January 1, 2018. The credit may be30 ENROLLEDHB NO. 705
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used in addition to any federal tax credits earned for the same system. A taxpayer1
shall not receive any other state tax credit, exemption, exclusion, deduction, or any2
other tax benefit for property for which the taxpayer has received a tax credit under3
this Section. There shall be no tax credits authorized, issued, or granted as provided4
in this Paragraph for systems installed after December 31, 2017.5
(2) In the case of a taxpayer who purchases and installs such a system in a6
residence or a residential rental apartment project which is located in Louisiana, the7
tax credit shall be claimed on the return for the taxable year in which such system8
is completed and placed in service. In the case of a taxpayer who purchases a newly9
constructed home or newly constructed residential rental apartment project with such10
a system, the tax credit shall be claimed on the return for the taxable year in which11
the act of sale takes place.12
C. Notwithstanding any other provision of law to the contrary, any excess13
of allowable credit over the aggregate tax liabilities against which such credit may14
be applied, as provided in this Section, shall constitute an overpayment, as defined15
in R.S. 47:1621(A), and the secretary shall make a refund of such overpayment from16
the current collections of the taxes imposed by Chapter 1 or Chapter 5 of Subtitle II17
of this Title, together with interest as provided in R.S. 47:1624. The right to a credit18
or refund of any such overpayment shall not be subject to the requirements of R.S.19
47:1621(B). All credits and refunds, together with interest thereof, must be paid or20
disallowed within one year of receipt by the secretary of any such claim for refund21
or credit. Failure of the secretary to pay or disallow, in whole or in part, any claim22
for a credit or a refund shall entitle the aggrieved taxpayer to proceed with the23
remedies provided in R.S. 47:1625.24
(2) Leased systems. Tax credits authorized under this Section for the25
purchase and installation of a system at a Louisiana residence by a third party26
through a lease with the owner of the residence shall be subject to the following27
provisions.28
(a) The tax credit shall be equal to fifty percent of the first twenty-five29
thousand dollars of the cost of purchase for a system installed before January 1,30 ENROLLEDHB NO. 705
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2014. For a system installed on or after January 1, 2014, and before January 1, 2018,1
the tax credit shall be equal to thirty-eight percent of the first twenty-five thousand2
dollars of the cost of purchase.3
(b) The purchase and installation of a system shall be eligible for a tax credit4
under following circumstances:5
(i) For a system purchased and installed on or after July 1, 2013, and before6
July 1, 2014, the system shall cost no more than four dollars and fifty cents per watt7
and provide for no more than six kilowatts of energy.8
(ii) For a system purchased and installed on or after July 1, 2014, and before9
July 1, 2015, the system shall cost no more than three dollars and fifty cents per watt10
and provide for no more than six kilowatts of energy.11
(iii) For a system purchased and installed on or after July 1, 2015, and12
before January 1, 2018, the system shall cost no more than two dollars per watt and13
provide for no more than six kilowatts of energy.14
(c) There shall be no tax credits authorized, issued, or granted as provided15
in this Paragraph for systems installed after December 31, 2017.16
D.C. As used in this Section:17
(1) "Wind energy system" means a system of apparatus and equipment with18
the primary purpose of intercepting and converting wind energy into mechanical or19
electrical energy and transferring this form of energy by a separate apparatus to the20
point of use or storage. "Cost of purchase" or "cost" means the reasonable and21
prudent costs for the equipment and installation of the solar electric or solar thermal22
systems. "Cost of purchase" or "cost" shall not include any lease management fee23
or any inducement to make a purchase, including but not limited to: rebates; prizes;24
gift certificates; trips; additional energy items or services, except energy audits25
offered at no charge to the purchaser; or any other thing of value given by a seller,26
installer, or equipment manufacturer as an inducement to buy a solar electric or solar27
thermal system.28
(2) "Home" means a single-family detached dwelling. "Solar energy29
system" means an energy system with the primary purpose of collecting or absorbing30 ENROLLEDHB NO. 705
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sunlight for conversion into electricity or an energy system with the primary purpose1
of collecting or absorbing solar energy for conversion into heat for the purposes of2
space heating, space cooling, or water heating. 3
(3) "Solar electric system" means a system consisting of photovoltaic panels4
with the primary purpose of converting sunlight to electrical energy and all5
equipment and apparatus necessary to connect, store, and process the electrical6
energy for connection to and use by an electrical load. "Solar electric system" shall7
include grid-connected net metering systems with or without battery backup, stand-8
alone alternating current (AC) systems, and stand-alone direct current (DC) systems.9
The eligible system components for a solar electric system include the following:10
(a) For grid-connected, net metering solar electric systems, the components11
include photovoltaic panels, mounting systems, inverters, charge controllers,12
batteries, battery cases, alternating current (AC) and direct current (DC) disconnects,13
lightning and ground fault protection, junction boxes, remote metering display14
devices, and related electrical wiring materials from the photovoltaic panels to point15
of interconnection with the residence or electrical load.16
(b) For stand-alone solar electric AC systems, the components include17
photovoltaic panels, mounting systems, inverters, charge controllers, batteries,18
battery cases, AC and DC disconnects, lightning and ground fault protection,19
junction boxes, remote metering display devices, and related electrical wiring20
materials from the photovoltaic panels to point of interconnection with the residence21
or electrical load.22
(c) For stand-alone solar electric DC systems, the components include23
photovoltaic panels, mounting systems, charge controllers, batteries, battery cases,24
DC disconnects, lightning and ground fault protection, junction boxes, remote25
metering display devices, and related electrical wiring materials from the26
photovoltaic panels to point of interconnection with the residence or electrical load.27
(4) "Solar thermal system" means a system consisting of a solar energy28
collector with the primary purpose of converting sunlight to thermal energy and all29
devices and apparatus necessary to transfer and store the collected thermal energy30 ENROLLEDHB NO. 705
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for the purposes of heating water, space heating, or space cooling. The eligible1
system components for a solar thermal system include solar thermal collectors,2
mounting systems, solar hot water storage tanks, timers, pumps, heat exchangers,3
drain back tanks, expansion tanks, controllers, sensors, valves, freeze protection4
devices, air elimination devices, photovoltaic panels for photovoltaic (PV) systems,5
piping, insulation, and other related materials from the solar thermal collectors to the6
solar hot water storage tanks.7
(5) "System" means a solar electric or solar thermal system, or any8
combination of components thereof.9
(6) "Residence" means a single-family detached dwelling.10
D.(1) The credit may be used in addition to any federal tax credits earned for11
the same system. However, a taxpayer shall not receive any other state tax credit,12
exemption, exclusion, deduction, or any other tax benefit for property for which the13
taxpayer has received a tax credit under this Section.14
(2)(a) If a taxpayer purchases and installs a system at his own residence, the15
credit shall be claimed on the tax return for the taxable year in which the system is16
completed and placed in service. If a taxpayer purchases a newly constructed home17
with a system already installed, the credit shall be claimed on the tax return for the18
taxable year in which the act of sale occurred. Proof of system installation shall be19
provided with a claim for a tax credit.20
(b) If a third-party taxpayer purchases a system for installation at another21
person's residence through a lease with the owner of the residence, the credit shall22
be claimed on the tax return for the taxable year in which the system is completed23
and placed in service. Proof of system installation shall be provided with a claim for24
a tax credit.25
* * *26
F. Notwithstanding any other provision of law to the contrary, any excess of27
allowable credit over the aggregate tax liabilities against which such credit may be28
applied, as provided in this Section, shall constitute an overpayment, as defined in29
R.S. 47:1621(A), and the secretary shall make a refund of such overpayment from30 ENROLLEDHB NO. 705
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the current collections of the taxes imposed by Chapter 1, Chapter 2, Chapter 2-A,1
Chapter 2-B, or Chapter 5 of Subtitle II of this Title, together with interest as2
provided in R.S. 47:1624. The right to a credit or refund of any such overpayment3
shall not be subject to the requirements of R.S. 47:1621(B). All credits and refunds,4
together with interest thereof, must be paid or disallowed within one year of receipt5
by the secretary of any such claim for refund or credit. Failure of the secretary to6
pay or disallow, in whole or in part, any claim for a credit or a refund shall entitle the7
aggrieved taxpayer to proceed with the remedies provided in R.S. 47:1625.8
F.G. The secretary of the Department of Revenue in consultation with the9
secretary of the Department of Natural Resources shall promulgate such rules and10
regulations in accordance with the Administrative Procedure Act as may be11
necessary to carry out the provisions of this Section. The rules and regulations shall12
be promulgated within ninety days of the effective date of this Section.13
Section 2. This Act shall become effective on July 1, 2013.14
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: