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)]
HB 779 Reengrossed 2015 Regular Session Ponti
Abstract: For the solar energy systems tax credit, reduces the maximum value of the credit and
provides for various changes regarding system eligibility and requirements for the claiming
of the credit
Present law provides for a state income tax credit for the purchase and installation of a solar energy
system on a La. residence. The credit requirements and benefits differ based upon whether the
system is purchased by the homeowner for installation at his residence, or if it is purchased by a third
party for installation at another person's residence. Purchased system
Present law provides that the amount of the tax credit for a system purchased by the homeowner is
equal to 50% of the first $25,000 of system cost. Present law prohibits tax credits for systems
installed after Dec. 31, 2017.
Proposed law retains present law for a system purchased and installed on or after Jan. 1, 2008 and
before July 1, 2015.
Proposed law changes the maximum amount of the credit for a system purchased and installed on
or after July 1, 2015, and before Jan. 1, 2018, by reducing the maximum credit amount to the lesser
of any of the following: 50% of the cost of purchase and installation, or $2.00 multiplied by the size
of the system measured in DC watts, or $10,000.
Leased system
Present law provides that the amount of the tax credit for a system which is purchased and installed
by a third party through a lease with the owner of the residence is equal to 38% of the first $25,000
of the cost of purchase for a system that provides no more than six kilowatts of energy, with the
following limitations:
(1)From July 1, 2013, through July 1, 2014, the system costs $4.50 per watt or less.
(2)From July 1, 2014, through July 1, 2015, the system costs $3.50 per watt or less.
(3)From July 1, 2015, through Jan. 1, 2017, the system costs $2.00 per watt or less.
Proposed law retains present law for a system purchased and installed prior to July 1, 2015.
Proposed law reduces the maximum credit amount for a system purchased and installed on or after
July 1, 2015, and before Jan. 1, 2018, from 50% of the first $25,000 of system costs to 50% of the
first $20,000 of system costs.
Proposed law retains present law with respect to limitations on system cost per watt and size.
Proposed law adds a $10 million annual cap on the amount of tax credits that may be granted for
leased systems in calendar years 2015, 2016, and 2017.
All systems
Proposed law imposes a 48 month limit on the length of time for which the cost of an eligible
installed solar energy system may be financed.
Present law defines a "solar energy system" eligible for the credit as a "solar electric system" or a
"solar thermal system". Proposed law repeals eligibility for a "solar thermal system" and adds exclusions for the following
types of solar energy equipment: air conditioning, ventilation, lighting, pool equipment, gate
systems, and other equipment as provided by administrative rule.
Present law provides generally with respect to the claiming of the tax credit, including the
requirement that the credit be claimed in the year in which the system was installed, or, if being
claimed on a newly purchased home, in the year in which the home was bought.
Proposed law retains present law but adds a limitation on the taking of the credit by prohibiting any
additional solar energy system tax credits once a solar energy system tax credit, regardless of the
amount, has been claimed on equipment for that residence.
Proposed law requires the submission of certain information by a taxpayer when claiming a credit.
This includes proof of installation, information on the solar panels, the terms of any financing for
the system, a form for use in providing the sworn statements by the dealer and installer regarding the
system size, and any other documentation that may be required by administrative rule. Proposed law
provides for the form to be use in the provision of the sworn statements.
Applicable to any system installed on or after July 1, 2015.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:6030(A)(1), (B), (C)(6), and(D); Repeals R.S. 47:6030(C)(5))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Add a prohibition on subsequent solar energy system tax credits for equipment installed
at a residence once a solar energy system tax credit has been claimed for the same
residence.
2. Retain the maximum credit amount for a system purchased and installed on or after Jan.
1, 2008 and before July 1, 2015.
3. Reduce the maximum credit amount for a system purchased and installed on or after July
1, 2015 and before Jan. 1, 2018, by changing the amount from 50% of a system valued
at up to $25,000 to the lesser of 50% of the purchase and installation costs, $2.00
multiplied by the size of the system measured in DC watts, or $10,000.
4. Delete the prohibition on any carry forward of credits.
5. Add a requirement for the submission of a sworn statement by the system installer as to
the system size, such document to be submitted by the taxpayer when claiming the credit. The House Floor Amendments to the engrossed bill:
1. Remove the repeal of tax credits for leased systems.
2. Reduced the amount of the tax credit for a leased system from 50% of the first $25,000
of system costs to 50% of the first $20,000 of system costs.
3. Add a $10 million annual cap on the amount of tax credits for leased systems that may
be granted in calendar years 2015, 2016, and 2017.