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Regular Session, 2013
SENATE BILL NO. 231
BY SENATOR MARTINY
TAX/TAXATION. Deletes the tax credit for wind energy systems and changes the credit
for solar "energy" systems to a tax credit for both solar "electric" systems and solar
"thermal" systems. (gov sig)
AN ACT1
To amend and reenact R.S. 47:6030, relative to tax credits; to repeal the tax credit for wind2
energy systems; to establish a tax credit for certain solar energy systems; to provide3
authorization for a credit against taxes in which the credit can be claimed; to provide4
the manner in which the credit may be claimed; to provide for a refund of any credit5
in excess of the tax liability; to provide for the promulgation of rules and regulations;6
to provide for an effective date; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 47:6030 is hereby amended and reenacted to read as follows:9
ยง6030. Wind or solar Solar energy systems tax credit10
A. There shall be a credit against the income, corporation franchise, and11
sales, tax for the cost of purchase and installation of a wind energy solar electric12
system or solar energy thermal system, or both, by a taxpayer at his residence13
located in this state, by the owner of a residential rental apartment project, or by a14
taxpayer who purchases and installs such a system in a residence or a residential15
rental apartment project which is located in Louisiana. The credit may be claimed16
in cases where the resident individual purchases a newly constructed home with such17 SB NO. 231
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a system already installed or where such a system is purchased and installed at an1
existing home, or where such systems are installed in new or existing apartment2
projects. Only one such tax credit shall be available for any eligible system. Each3
eligible system shall be installed in the immediate vicinity of the residence to4
which the electrical, mechanical, or thermal energy is delivered. With respect5
to each residence, only one credit for a solar electric system and one credit for6
a solar thermal system shall be authorized. Once a tax credit authorized pursuant7
to this Section is claimed by a taxpayer for a particular system, that same system8
shall not be eligible for any other tax credit pursuant to this Section. If the9
residential property or system is sold, the taxpayer who claimed the tax credit shall10
disclose his use of the tax credit to the purchaser.11
B.(1)(a) The credit for each solar electric system shall be equal to fifty12
percent of the first twenty-five thousand dollars of the cost of purchase for each13
wind energy system or solar energy electric system, including installation costs, that14
is purchased and installed on or after January 1, 2008 , and before December 31,15
2016, by a taxpayer at his residence.16
(b) The credit for each solar electric system shall be equal to thirty-five17
percent of the cost of purchase for each solar electric system, including18
installation costs, that is purchased and installed on or after January 1, 2017,19
and before December 31, 2020, by a taxpayer at his residence.20
(2)(a) The credit for each solar electric system shall be equal to fifty21
percent of the first twenty-five thousand dollars of the cost of purchase for each22
solar electric system, including installation costs, that is purchased and installed23
on or after January 1, 2008, and before December 31, 2016, by a third-party24
taxpayer at a residence in this state through a lease with the owner of the25
residence.26
(b) The credit for each solar electric system shall be equal to thirty-five27
percent of the first twenty-five thousand dollars of the cost of purchase for each28
solar electric system, including installation costs, that is purchased and installed29 SB NO. 231
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on or after January 1, 2017, and before December 31, 2020, by a third party1
taxpayer at a residence in this state through a lease with the owner of the2
residence.3
(3)(a) The credit for each solar thermal system shall be equal to fifty4
percent of the first ten thousand dollars of the cost of purchase for each solar5
thermal system, including installation costs, that is purchased and installed on6
or after January 1, 2013, and before December 31, 2016, by a taxpayer at his7
residence or by a third-party taxpayer at a residence in this state through a8
lease with the owner of the residence.9
(b) The credit for each solar thermal system shall be equal to thirty-five10
percent of the first ten thousand dollars of the cost of purchase for each solar11
thermal system, including installation costs, that is purchased and installed on12
or after January 1, 2017, and before December 31, 2020, by a taxpayer at his13
residence or by a third-party taxpayer at a residence in this state through a14
lease with the owner of the residence.15
(4)(a)(i) To be eligible for the credit, the cost of purchase for a solar16
electric system installed by a taxpayer at his residence shall be capped so as to17
not exceed the greater of the total energy needs of the residence or twelve18
kilowatts and a cost basis of four dollars and fifty cents per watt for a single19
residence.20
(ii) To be eligible for the credit, the cost of purchase for a solar thermal21
system installed by a taxpayer at his residence shall be capped so as to not22
exceed ten thousand dollars or a cost basis of four dollars and fifty cents per btu23
equivalent watt for a single residence.24
(b)(i) To be eligible for the credit, the cost of purchase for a solar electric25
system installed by a third-party taxpayer at a residence utilizing a lease or26
similar option with the owner of the residence shall be capped so as to not27
exceed the greater of the total energy needs of the residence or a cost basis of28
four dollars and fifty cents per watt for a single residence.29 SB NO. 231
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(ii) To be eligible for the credit, the cost of purchase for a solar thermal1
system installed by a third-party taxpayer at his residence shall be capped so as2
to not exceed ten thousand dollars or a cost basis of four dollars and fifty cents3
per btu equivalent watt for a single residence.4
(c) Whenever, in return for the purchase price or as an inducement to5
make a purchase, marketing rebates or incentives are offered, the cost of6
purchase shall be reduced by the fair market value of the marketing rebate or7
incentive received. Marketing rebates or incentives include but are not limited8
to cash rebates, prizes, gift certificates, trips, additional energy efficiency items9
or services, or any other thing of value given by the seller, installer, or10
equipment manufacturer to the taxpayer as an inducement to purchase a solar11
electric or solar thermal system.12
(5) The credit may be used in addition to any federal tax credits earned for13
the same system. A taxpayer shall not receive any other state tax credit, exemption,14
exclusion, deduction, or any other tax benefit for property for which the taxpayer has15
received a tax credit under this Section.16
(2) (6) In the case of a taxpayer who purchases and installs such a system in17
a residence or a residential rental apartment project which is located in Louisiana,18
the tax credit shall be claimed on the return for the taxable year in which such system19
is completed and placed in service. In the case of a taxpayer who purchases a newly20
constructed home or newly constructed residential rental apartment project with such21
a system, the tax credit shall be claimed on the return for the taxable year in which22
the act of sale takes place. In the case of a taxpayer claiming a tax credit on a23
sales tax return, the tax credit shall be claimed on any return due for a period24
in the taxable year in which the system is completed or in which the act of sale25
of the residence takes place.26
C. Notwithstanding any other provision of law to the contrary, any excess27
of allowable credit over the aggregate tax liabilities against which such credit may28
be applied, as provided in this Section, shall constitute an overpayment, as defined29 SB NO. 231
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in R.S. 47:1621(A), and the secretary shall make a refund of such overpayment from1
the current collections of the taxes imposed by Chapter 1, or Chapter 2, Chapter2
2-A, Chapter 2-B, Chapter 5 of Subtitle II of this Title, together with interest as3
provided in R.S. 47:1624. The right to a credit or refund of any such overpayment4
shall not be subject to the requirements of R.S. 47:1621(B). All credits and refunds,5
together with interest thereof, must be paid or disallowed within one year of receipt6
by the secretary of any such claim for refund or credit. Failure of the secretary to7
pay or disallow, in whole or in part, any claim for a credit or a refund shall entitle the8
aggrieved taxpayer to proceed with the remedies provided in R.S. 47:1625.9
D. As used in this Section:10
(1) "Wind energy system" means a system of apparatus and equipment with11
the primary purpose of intercepting and converting wind energy into mechanical or12
electrical energy and transferring this form of energy by a separate apparatus to the13
point of use or storage. "Solar electric system" means a system consisting of14
photovoltaic panels with the primary purpose of converting sunlight to15
electrical energy and all equipment and apparatus necessary to connect, store,16
and process the electrical energy for connection to and use by an electrical load.17
"Solar electric system" shall include grid-connected net metering systems,18
grid-connected net metering systems with battery backup, stand-alone19
alternating current (AC) systems, and stand-alone direct current (DC) systems.20
The eligible system components for a solar electric system include the following:21
(a) For grid-connected, net metering solar electric systems, the22
components include photovoltaic panels, mounting systems, inverters, charge23
controllers, batteries, battery cases, alternating current (AC) and direct current24
(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 electrical27
load.28
(b) For stand-alone solar electric AC systems, the components include29 SB NO. 231
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photovoltaic panels, mounting systems, inverters, charge controllers, batteries,1
battery cases, AC and DC disconnects, lightning and ground fault protection,2
junction boxes, remote metering display devices, and related electrical wiring3
materials from the photovoltaic panels to point of interconnection with the4
residence or electrical load.5
(c) For stand-alone solar electric DC systems, the components include6
photovoltaic panels, mounting systems, charge controllers, batteries, battery7
cases, DC disconnects, lightning and ground fault protection, junction boxes,8
remote metering display devices, and related electrical wiring materials from9
the photovoltaic panels to point of interconnection with the residence or10
electrical load.11
(2) "Solar energy system" means an energy system with the primary purpose12
of collecting or absorbing sunlight for conversion into electricity or an energy system13
with the primary purpose of collecting or absorbing solar energy for conversion into14
heat for the purposes of space heating, space cooling, or water heating. "Solar15
thermal system" means a system consisting of a solar energy collector with the16
primary purpose of converting sunlight to thermal energy and all devices and17
apparatus necessary to transfer and store the collected thermal energy for the18
purposes of heating water, space heating, or space cooling. The eligible system19
components for a solar thermal system include solar thermal collectors,20
mounting systems, solar hot water storage tanks, timers, pumps, heat21
exchangers, drain back tanks, expansion tanks, controllers, sensors, valves,22
freeze protection devices, air elimination devices, photovoltaic panels for PV23
systems, piping, insulation, and other related materials from the solar thermal24
collectors to the solar hot water storage tanks.25
(3) "Cost of purchase" means the reasonable and prudent costs for the26
equipment and installation of the solar electric or solar thermal systems.27
E. Credits may be claimed in accordance with the following:28
(1) Any entity taxed as a corporation for Louisiana income tax and franchise29 SB NO. 231
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tax purposes shall claim any credit authorized according to the provisions of this1
Section on its corporation income and franchise tax return.2
(2) Any individual, estate, or trust shall claim any credit authorized3
according to the provisions of this Section on its income tax return.4
(3) Any entity not taxed as a corporation shall claim any credit authorized5
according to the provisions of this Section on the returns of the partners or members6
as follows:7
(a) Corporate partners or members shall claim their share of the credit on8
their corporation income tax or franchise tax returns.9
(b) Individual partners or members shall claim their share of the credit on10
their individual income tax or franchise tax returns.11
(c) Partners or members that are estates or trusts shall claim their share of the12
credit on their fiduciary income tax returns.13
(4) Entities or individuals subject to sales tax shall claim any credit14
authorized according to the provisions of this Section on their sales tax returns.15
F. The secretary of the Department of Revenue in consultation with the16
secretary of the Department of Natural Resources shall promulgate such rules and17
regulations in accordance with the Administrative Procedure Act as may be18
necessary to carry out the provisions of this Section. The rules and regulations shall19
be promulgated within ninety days of the effective date of this Section.20
Section 2. Nothing in this Act shall affect or defeat any claim, assessment, appeal,21
suit, right, or cause of action for taxes or refunds due or accrued under the income tax laws22
of this state before the date on which this Act becomes effective, whether such claims,23
assessments, appeals, suits, or actions have been instituted before the date on which this Act24
becomes effective or are instituted thereafter if the claim, assessment, appeal, suit, or action25
relates to a taxable period ending on or before the effective date of this Act.26
Section 3. This Act shall become effective upon signature by the governor or, if not27
signed by the governor, upon expiration of the time for bills to become law without signature28
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If29 SB NO. 231
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vetoed by the governor and subsequently approved by the legislature, this Act shall become1
effective on the day following the approval.2
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Riley Boudreaux.
DIGEST
Present law provides for a tax credit for the purchase and installation of a wind energy
system or solar energy system.
Proposed law deletes the tax credit for wind energy systems and changes the tax credit for
solar energy systems to a tax credit for both "solar electric systems" and "solar thermal
systems".
Present law provides that the credit for solar energy systems is 50% of the first $25,000 of
the cost of each system, including installation costs, which is purchased and installed on or
after Jan. 1, 2008.
Proposed law establishes the following tax credits for the costs of purchase and installation
of both "solar electric systems" and "solar thermal systems."
Each solar "electric" system has the following credits:
1. 50% for all the costs before December 31, 2016 by a taxpayer at his residence.
2. 50% of the first $25,000 of the costs before December 31, 2016 by a "third-party"
taxpayer at a residence in this state through a lease with the owner of the residence.
3. 35% for all the costs on or after January 1, 2017 and before December 31, 2020 by
a taxpayer at his residence.
4. 35% of the first $25,000 of the costs on or after January 1, 2017 and before
December 31, 2020 by a "third-party" taxpayer at a residence in this state through
a lease with the owner of the residence.
Each solar "thermal" system has the following credits:
1. 50% of the first $10,000 of the costs before December 31, 2016 by a taxpayer at his
residence or by a "third-party" taxpayer at a residence in this state through a lease
with the owner of the residence.
2. 35% of the first $10,000 of the costs on or after January 1, 2017 and before
December 31, 2020 by a taxpayer at his residence or by a "third-party" taxpayer at
a residence in this state through a lease with the owner of the residence.
Proposed law defines "solar electric system" as a system consisting of photovoltaic panels
with the primary purpose of converting sunlight to electrical energy and all equipment and
apparatus necessary to connect, store, and process the electrical energy for connection to and
use by an electrical load. "Solar electric system" is defined to include grid-connected net
metering systems, grid-connected net metering systems with battery backup, stand-alone
alternating current (AC) systems, and stand-alone direct current (DC) systems.
Proposed law further defines the eligible system components for a solar electric system to
include the following: SB NO. 231
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(1)For grid-connected, net metering solar electric systems, the components include
photovoltaic panels, mounting systems, inverters, charge controllers, batteries,
battery cases, alternating current (AC) and direct current (DC) disconnects, lightning
and ground fault protection, junction boxes, remote metering display devices, and
related electrical wiring materials from the photovoltaic panels to point of
interconnection with the residence or electrical load.
(2)For stand-alone solar electric AC systems, the components include photovoltaic
panels, mounting systems, inverters, charge controllers, batteries, battery cases, AC
and DC disconnects, lightning and ground fault protection, junction boxes, remote
metering display devices, and related electrical wiring materials from the
photovoltaic panels to point of interconnection with the residence or electrical load.
(3)For stand-alone solar electric DC systems, the components include photovoltaic
panels, mounting systems, charge controllers, batteries, battery cases, DC
disconnects, lightning and ground fault protection, junction boxes, remote metering
display devices, and related electrical wiring materials from the photovoltaic panels
to point of interconnection with the residence or electrical load.
Proposed law defines "solar thermal system" as a system consisting of a solar energy
collector with the primary purpose of converting sunlight to thermal energy and all devices
and apparatus necessary to transfer and store the collected thermal energy for the purposes
of heating water, space heating, or space cooling. Defines the eligible system components
for a solar thermal system to include solar thermal collectors, mounting systems, solar hot
water storage tanks, timers, pumps, heat exchangers, drain back tanks, expansion tanks,
controllers, sensors, valves, freeze protection devices, air elimination devices, photovoltaic
panels for PV systems, piping, insulation, and other related materials from the solar thermal
collectors to the solar hot water storage tanks.
Proposed law defines "cost of purchase" as the reasonable and prudent costs for the
equipment and installation of the solar electric or solar thermal systems.
Proposed law removes the allowance of a tax credit in present law for installations in a
residential rental apartment project.
Proposed law requires each eligible system to be installed in the immediate vicinity of the
residence to which the electrical, mechanical, or thermal energy is delivered.
Proposed law authorizes, with respect to each residence, only one credit for a solar electric
system and one credit for a solar thermal system.
Proposed law provides that, to be eligible for the credit, the cost of purchase for a solar
"electric" system installed by a taxpayer at his residence shall be capped so as to not exceed
the greater of the total energy needs of the residence or twelve kilowatts and a cost basis of
$4.50 per watt for a single residence. If installed by a third-party taxpayer at a residence
utilizing a lease or similar option with the owner of the residence, it is capped so as to not
exceed the greater of the total energy needs of the residence or a cost basis of $4.50 per watt
for a single residence.
Proposed law provides that, to be eligible for the credit, the cost of purchase for a solar
"thermal" system installed by a taxpayer at his residence shall be capped so as to not exceed
$10,000 or a cost basis of $4.50 per btu equivalent watt for a single residence. If installed
by a third-party taxpayer at his residence, it is capped so as to not exceed $10,000 or a cost
basis of $4.50 per btu equivalent watt for a single residence.
Proposed law provides that whenever, in return for the purchase price or as an inducement
to make a purchase, marketing rebates or incentives are offered, the cost of purchase shall
be reduced by the fair market value of the marketing rebate or incentive received. Marketing SB NO. 231
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rebates or incentives include but are not limited to cash rebates, prizes, gift certificates, trips,
additional energy efficiency items or services, or any other thing of value given by the seller,
installer, or equipment manufacturer to the taxpayer as an inducement to purchase a solar
electric or solar thermal system.
Present law requires the secretary of the Dept. of Revenue, in consultation with the secretary
of the Dept. of Natural Resources, to promulgate such rules and regulations as may be
necessary to carry out the provisions of present law.
Proposed law retains present law but repeals the requirement that the rules be promulgated
in consultation with the secretary of the Dept. of Natural Resources.
Proposed law provides that nothing in it is to affect or defeat any claim, assessment, appeal,
suit, right, or cause of action for taxes or refunds due or accrued under the income tax laws
of this state before the date on which proposed law becomes effective, whether such claims,
assessments, appeals, suits, or actions have been instituted before the date on which
proposed law becomes effective or are instituted thereafter if such claim, assessment, appeal,
suit, or action relates to a taxable period ending on or before the effective date of proposed
law.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 47:6030)