Louisiana Senate Bill SB231

Louisiana 2013 Regular Session

• Introduced: 4/8/13
• Refer: 4/8/13

Caption

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) (OR SEE FISC NOTE GF RV)

Impact

The amendment to the tax credit structure raises the percentage of allowable credits for solar electric systems to 50% for purchases made before 2016, with a reduced rate of 35% for installations after 2016. Moreover, solar thermal systems will also be eligible for 50% credits for purchases before 2016, and 35% for those made between 2017 and 2020. These changes are likely to incentivize homeowners to transition to solar energy, potentially impacting local energy markets and the state’s overall energy production landscape.

Summary

Senate Bill 231 proposes significant changes to the existing tax credits for renewable energy systems in Louisiana. The bill repeals the current tax credit for wind energy systems and instead refocuses incentives on solar energy systems, creating tax credits for both solar electric and solar thermal systems. The intention behind this legislative shift is to bolster the state’s commitment to renewable energy and promote the installation of solar technologies, enhancing energy independence and sustainability within the state.

Sentiment

The sentiment surrounding SB 231 appears to be mixed, with proponents of solar energy embracing the revised credits as a positive step towards a more sustainable future. Supporters argue that the bill will enhance job creation within the solar industry and reduce reliance on fossil fuels, contributing to environmental conservation. Conversely, critics may express concern regarding the complete elimination of wind energy credits, potentially stifling investment in diverse renewable technologies and leading to an over-reliance on solar, which may not be feasible for all property owners.

Contention

One notable point of contention is the explicit removal of wind energy tax credits, which advocates for wind energy argue could discourage investment in this sector. Some lawmakers and environmental groups may feel this bill disproportionately favors solar energy at the expense of other renewable sources. Additionally, the bill’s provisions regarding the tax calculation caps for eligible systems might further ignite discussions on how best to achieve a balanced and comprehensive approach to environmental legislation.