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 817 Original 2015 Regular Session Broadwater
Abstract: Reduces the amount of the solar energy system tax credit for systems purchased and
installed in certain homes from $25,000 to $20,000 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. Credit requirements and benefits differ based on 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.
Proposed law reduces the amount of the credit from 50% of the first $25,000 of the system's cost to
50% of the first $20,000 of the system's cost.
Proposed law adds limitation for systems eligible for the tax credit to systems that provide for no
more than six kilowatts of energy at a cost of no more than $2 per watt.
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 for claiming the tax credit, including the requirement that the credit
be claimed in the year in which the system is installed, or, if being claimed on a newly purchased
home, in the year the home is bought.
Proposed law retains present law but adds a limitation that the credit be claimed only in the year in
which the installation or home purchase took place. Proposed law prohibits the carryforward of any
unused credit amount.
Proposed law requires the submission of proof of installation, serial number, model number, and energy output for each solar panel installed, and any other documentation by the department.
Leased system
Present law provides that the amount of the tax credit for a system 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 repeals present law provisions relative to leased systems installed prior to July 1, 2015,
in favor of setting the amount of the credit for leased systems at 35% of the cost of a system
purchased and installed on or after July 1, 2015, and before Jan. 1, 2018, provided the system costs
no more than $2 per watt or provides no more than six kilowatts of energy.
Proposed law caps the total amount of tax credits granted for leased systems from July 1, 2015,
through Dec. 31, 2015, at $10M. For calendar years 2016 and 2107, the total amount of tax credits
granted for leased systems in any calendar year shall not exceed $20M. Requires the department to
promulgate rules to establish a method of allocating tax credits. Authorizes unallocated tax credits
in any calendar year to be carried forward to the next calendar year and added to the total amount of
tax credits allocated for that year.
Applicable to any system installed on or after the effective date of this Act.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:6030(A)(1), (B), (C)(6), and (D))