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Regular Session, 2014
HOUSE BILL NO. 528
BY REPRESENTATIVE PIERRE
ENERGY/ALTERNATE: Provides relative to agreements between property owners and
third parties installing solar panels and solar energy systems
AN ACT1
To amend and reenact R.S. 47:6030(F) and (G) and to enact R.S. 47:6030(H) through (M),2
relative to solar energy systems tax credits; to provide for contracts to install solar3
panels and solar energy systems; to require that contracts to install solar panels on4
residential property contain specific terms and provisions; to provide for required5
declarations; to provide for certain monitoring requirements; to provide for the6
certification of certain solar energy systems relative to tax credit eligibility; and to7
provide for related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 47:6030(F) and (G) are hereby amended and reenacted and R.S.10
47:6030(H) through (M) are hereby enacted to read as follows:11
§6030. Solar energy systems tax credit ; contracts to install solar panels and solar12
energy systems; requirements13
* * *14
F. Any contract to install solar panels on any residential property shall15
clearly state the following, at minimum, in writing:16
(1) Ownership terms.17
(2) The parties' obligations and rights pertaining to maintenance, monitoring,18
repair, and replacement of the system.19 HLS 14RS-1323 ENGROSSED
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(3) The parties' obligations pertaining to insurance requirements including1
the type of insurance coverage required and the named insureds.2
(4) The processes and consequences regarding defaults and early termination3
of the contract.4
(5) The party or parties responsible for obtaining any required governmental5
approvals.6
(6) The party who will claim the tax credit pursuant to this Section.7
(7) The party who is responsible for payment of any taxes due on or related8
to the system or its installation.9
G. The contract shall have attached two clear and conspicuous declarations.10
H.(1) The first declaration shall be a statement informing the residential11
property owner of the following:12
(a) The residential property owner should not rely on any statements or13
inducements of the seller as described in Paragraph (C)(1) of this Section, regarding14
Louisiana income tax credits available for the purchase and installation of the15
system.16
(b) The residential property owner’s eligible costs pursuant to the Louisiana17
solar energy systems tax credit are limited to those provided in LAC 61:I.1907(F)(1).18
(c) The residential property owner should consult a tax professional prior to19
claiming any Louisiana state tax credit.20
(2) The provisions of the declaration pursuant to Paragraph (H)(1) of this21
Section shall be in print of not less than twelve point font and in the following form:22
"Eligible Costs23
I, the undersigned residential property owner, am the purchaser of a solar24
energy system and may be entitled to claim the Louisiana solar energy systems tax25
credit pursuant to R.S. 47:6030.26
I understand and acknowledge my right to consult a tax professional prior to27
claiming any Louisiana state tax credit for which I may be eligible. I have been28 HLS 14RS-1323 ENGROSSED
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provided with a copy of the Louisiana Department of Revenue Rule relative to1
Income Tax Credits for Wind or Solar Energy Systems (LAC 61:I.1907).2
I understand and acknowledge that LAC 61:I.1907(F)(2) and (3) provide3
costs ineligible for inclusion under the tax credit. I understand that R.S.4
47:6030(C)(1) explains that my "cost of purchase" or overall "costs" of a solar5
energy system cannot include any lease management fee or any inducement to6
purchase or lease a solar energy system.7
I understand that an inducement is an incentive for me to purchase a solar8
energy system. An inducement may be offered to me as a rebate, prize, gift9
certificate, trip, additional energy item or service, or any other thing of value given10
to me by the seller, installer, or equipment manufacturer as an incentive for me to11
purchase a solar energy system.12
Whenever marketing rebates or incentives are offered to me in return for the13
purchase price of the system or as an inducement to make the purchase, the eligible14
costs under LAC 61:I.1907(F)(1) will be accordingly reduced by the fair market15
value of the marketing rebate or incentive that I receive.16
(Date)17
(Residential Property Owner's Signature)"18
I.(1) Pursuant to Paragraph(F)(6) of this Section, to establish the identity of19
the residential property owner and third-party claimant, the declaration required20
pursuant to this Subsection shall minimally include and have attached the following:21
(a) The signature of each residential property owner, except in cases where22
the owner has legal authority to execute the declaration without the consent of other23
owners.24
(b) A copy of the act of sale or other documentation evidencing ownership25
of the residential property.26 HLS 14RS-1323 ENGROSSED
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(c) A document containing the third-party Louisiana contractor’s name and1
contractor's license number, along with the contractor's Solar Designation.2
(2) Any declaration required by this Subsection that contains provisions not3
expressly required by this Subsection shall be rendered null and void.4
J. Notwithstanding any provision of law to the contrary, the owner or lessee5
of the residential property or system is not precluded from availing himself of any6
solar energy systems tax credits that are not available pursuant to this Section.7
K. To be eligible for the Solar Energy Tax Credit, all solar energy systems8
designed to perform space heating and cooling shall be certified as a complete9
system by the Air-Conditioning Heating and Refrigeration Institute (AHRI). No10
modifications or additions shall be made to a solar heating and cooling system that11
would invalidate AHRI certification or invalidate the manufacturer’s warranty on the12
entire system or any individual component.13
F.L. Notwithstanding any other provision of law to the contrary, any excess14
of allowable credit over the aggregate tax liabilities against which such credit may15
be applied, as provided in this Section, shall constitute an overpayment, as defined16
in R.S. 47:1621(A), and the secretary shall make a refund of such overpayment from17
the current collections of the taxes imposed by Chapter 1, Chapter 2, Chapter 2-A,18
Chapter 2-B, or Chapter 5 of Subtitle II of this Title, together with interest as19
provided in R.S. 47:1624. The right to a credit or refund of any such overpayment20
shall not be subject to the requirements of R.S. 47:1621(B). All credits and refunds,21
together with interest thereof, must be paid or disallowed within one year of receipt22
by the secretary of any such claim for refund or credit. Failure of the secretary to23
pay or disallow, in whole or in part, any claim for a credit or a refund shall entitle the24
aggrieved taxpayer to proceed with the remedies provided in R.S. 47:1625.25
G.M. The secretary of the Department of Revenue shall promulgate such26
rules and regulations in accordance with the Administrative Procedure Act as may27
be necessary to carry out the provisions of this Section. The rules and regulations28
shall be promulgated within ninety days of the effective date of this Section.29 HLS 14RS-1323 ENGROSSED
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Pierre HB No. 528
Abstract: Provides relative to agreements between property owners and third parties
installing solar panels and solar energy systems.
Proposed law requires any agreement to install solar panels on any residential property to
clearly state the rights and responsibilities of all involved parties including ownership terms,
maintenance responsibilities, insurance requirements, monitoring requirements, provisions
regarding default and early termination of a contract, responsibilities relative to
governmental approvals, the party entitled to claim certain tax credits, and tax
responsibilities.
Proposed law requires a contract to install a solar energy system to have two declarations
and further provides that the first declaration is required to inform the residential property
owner of the following:
(1) The residential property owner should not rely on any statements or inducements
of the seller as described in present law (R.S. 47:6030(C)(1), regarding La. income
tax credits available for the purchase and installation of the system.
(2) The residential property owner’s eligible costs pursuant to the La. solar energy
systems tax credit are limited to those provided in present administrative law (LAC
61:I.1907(F)(1)).
(3) The residential property owner should consult a tax professional prior to
claiming any La. state tax credit.
Proposed law provides the first declaration required by proposed law to be entitled "Eligible
Costs". Proposed law further requires the declaration to be in print of not less than 12 point
font and in the form specifically provided for in proposed law.
Proposed law requires for the second declaration to establish the identity of the residential
property owner and the third-party claimant. Proposed law further provides that the
declaration is required to minimally include and have attached the following:
(1) The signature of each residential property owner, except in cases where the
owner has legal authority to execute the declaration without the consent of other
owners.
(2) A copy of the act of sale or other documentation evidencing ownership of the
residential property.
(3) A document containing the third-party Louisiana contractor’s name and
contractor's license number, along with the contractor's Solar Designation.
Any declaration required by proposed law containing provisions not expressly required in
proposed law is rendered null and void.
Proposed law requires any solar energy system to be certified by the Air-Conditioning
Heating and Refrigeration Institute to be eligible for the Solar Energy Tax Credit. HLS 14RS-1323 ENGROSSED
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Present law provides for the refund of overpayments, which is any excess of allowable credit
over the aggregate tax liabilities against which the credit may be applied.
Present law requires the secretary of the Dept. of Revenue to promulgate rules and
regulations in accordance with the APA as necessary to carry out the provisions of both
present and proposed law, and such rules and regulations are required to be promulgated
within 90 days of the effective date.
Proposed law retains present law.
(Amends R.S. 47:6030(F) and (G); Adds R.S. 47:6030(H) through (M))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Commerce to the original
bill.
1. Made technical changes.
2. Revised the language relative to the requirement for the contract to install solar
panels to include the party who will claim the tax credit pursuant to present law.
3. Added that a contract to install a solar energy system is required to have attached
two clear and conspicuous declarations relative to the residential property owner
and inducements to purchase a solar energy system, provisions regarding eligible
costs, the residential property owner's discretion to consult a tax professional,
and inclusions and attachments relative to the identity of the residential property
owner and third-party contractor.
4. Required solar energy systems to be certified by the Air-Conditioning Heating
and Refrigeration Institute to be eligible for the Solar Energy Tax Credit.