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Regular Session, 2014
SENATE BILL NO. 632
BY SENATOR RISER
TAX/TAXATION. Authorizes the secretary of the Department of Revenue to establish a
Solar Credit Secured Refund Pilot Program to allow taxpayers who are eligible to receive
a solar credit refund to authorize their refunds to be paid directly to a properly secured third
party lender. (gov sig)
AN ACT1
To enact R.S. 47:1628, relative to refunds; to authorize the secretary of the Department of2
Revenue to establish a Solar Credit Secured Refund Pilot Program; to provide for3
certain requirements, restrictions, and regulations; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 47:1628 is hereby enacted to read as follows: 6
ยง1628. Solar Credit Secured Refund Pilot Program7
A.(1) The secretary of the Department of Revenue shall establish a pilot8
program which will allow a taxpayer, or a group of taxpayers, who are eligible9
to receive a refund pursuant to the provisions of the solar energy systems tax10
credit in R.S. 47:6030(F) to authorize all or a portion of any refund to which he11
or they may be lawfully entitled to in a specific tax year or years, whether by12
reason of R.S. 47:6030(F) or any other provision of law, to be paid directly to13
a properly secured third party lender. The program shall be effective on a date14
selected by the secretary, but no later than January 1, 2015.15
(2)(a) The program shall be available only for a properly secured third16
party lender who will be entitled to be paid a refund, or a group of refunds,17 SB NO. 632
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whose aggregate amount is reasonably likely to be five hundred thousand1
dollars or more as determined by the secretary after review according to2
program guidelines of documentation submitted by such lender.3
B. The program shall include the following:4
(1) An application form.5
(2) A requirement that sufficient documentation shall be provided to the6
secretary in order for him to determine the following:7
(a) That the taxpayer who would otherwise be due the refund has8
voluntarily waived his right to the confidentiality of his tax information and9
agreed that it be shared with the properly secured third party lender.10
(b) That the taxpayer who would otherwise be due the refund is eligible11
to receive a refund pursuant to the provisions of R.S. 47:6030(F) and has12
voluntarily conferred upon the properly secured third party lender his right to13
receive a refund for the specific tax year or years to which the taxpayer is14
lawfully entitled whether by reason of R.S. 47:6030(F) or any other provision15
of law, and has executed a limited power of attorney on behalf of such lender for16
purposes of receiving his refund.17
(c) That the aggregate amount of the refund or group of refunds is18
reasonably likely to be five hundred thousand dollars or more.19
(d) That the lender does, in fact, have a security interest in all or a20
portion of the refund or refunds to which the taxpayer is lawfully entitled21
whether by reason of R.S. 47:6030(F) or any other provision of law through a22
properly executed security instrument or agreement, the types of instruments23
or agreements acceptable to be set forth in the regulations required for the24
program as provided for in this Section.25
(3) A reasonable period of time for the secretary to review and approve26
or reject the application of the lender, which shall run from the time the27
documentation required by Paragraph (2) of this Subsection, and any additional28
information from the taxpayer or lender reasonably necessary for the29 SB NO. 632
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secretary's review, is received by the secretary.1
(4) A requirement that written notice of the acceptance or rejection of2
the application be delivered to the lender.3
C.(1) The right of the properly secured third party lender to obtain the4
refund or refunds shall become effective thirty days after the secretary has5
reviewed and approved the application, or such shorter period as indicated on6
the written notice of acceptance.7
(2) Any refund secured pursuant to the program shall be subject to any8
offset or reduction authorized or required by law. The program shall confer9
upon the properly secured third party lender only the right to the refund which10
would otherwise be due to the taxpayer and no more. If the amount of the11
refund is less than the amount secured by the lender, the Department of12
Revenue shall not be responsible for the deficiency.13
D. The proposed program shall be set forth in proposed regulations14
which shall be submitted to both the Senate Committee on Revenue and Fiscal15
Affairs and the House Committee on Ways and Means by October 31, 2014, for16
their oversight pursuant to the Administrative Procedure Act.17
Section 2. The secretary of the Department of Revenue shall provide written18
notification to the Louisiana State Law Institute of the date which he selects as the effective19
date of the program provided for in this Act.20
Section 3. This Act shall become effective upon signature by the governor or, if not21
signed by the governor, upon expiration of the time for bills to become law without signature22
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If23
vetoed by the governor and subsequently approved by the legislature, this Act shall become24
effective on the day following such approval.25 SB NO. 632
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Riley Boudreaux.
DIGEST
Riser (SB 632)
Present law authorizes a refundable income tax credit for the cost of purchase and
installation of certain solar electric systems or solar thermal systems.
Proposed law requires the secretary of the Department of Revenue to establish the "Solar
Credit Secured Refund Pilot Program". The program will allow a taxpayer, or a group of
taxpayers, who are eligible to receive a solar energy systems tax credit refund to authorize
all or a portion of any refund to which he or they may be entitled to in a specific tax year or
years whether by reason of the solar credit or any other provision of law to be paid directly
to a properly secured third party lender.
The program is effective on a date selected by the secretary, but no later than January 1,
2015.
The program is available only for a lender who will be entitled to be paid a refund, or a
group of refunds, whose aggregate amount is reasonably likely to be $500,000 or more as
determined by the secretary after review according to program guidelines of documentation
submitted by such lender.
Proposed law sets out certain requirements for the program including a requirement that
sufficient documentation be provided to the secretary to determine that the lender does, in
fact, have a security interest in all or a portion of the refund or refunds to which the taxpayer
is lawfully entitled whether by reason of the solar credits or any other provision of law
through a properly executed security instrument or agreement, the types of instruments or
agreements acceptable to be set forth in regulations.
Proposed law provides that any refund secured pursuant to the program is subject to any
offset or reduction authorized or required by law and the lender has only the right to the
refund which would otherwise be due to the taxpayer and no more. If the amount of the
refund is less than the amount secured by the lender, the Department of Revenue is not
responsible for the deficiency.
Proposed law requires the program to be set forth in proposed regulations which must be
submitted to both the Senate Revenue and Fiscal Affairs and House Ways and Means by
October 31, 2014, for their oversight pursuant to the APA.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 47:1628)