HLS 162ES-82 ORIGINAL
2016 Second Extraordinary Session
HOUSE BILL NO. 54
BY REPRESENTATIVE THIBAUT
TAX CREDITS: Provides with respect to the tax credit for solar energy systems
1 AN ACT
2To amend and reenact R.S. 47:6030(B)(1)(c)(i) and (2)(b)(ii)(introductory paragraph) and
3 (aa), and to repeal R.S. 47:6030(B)(2)(b)(ii)(bb) and (cc), relative to the solar energy
4 system tax credit; to provide with respect to limits on the total value of credits which
5 may be paid for purchased and leased systems; to provide for effectiveness; and to
6 provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:6030(B)(1)(c)(i) and (2)(b)(ii)(introductory paragraph) and (aa)
9are hereby amended and reenacted to read as follows:
10 ยง6030. Solar energy systems tax credit
11 * * *
12 B. (1) Purchased systems. The tax credit for the purchase and installation
13 of an eligible system at a Louisiana residence or for a system which is already
14 installed in a newly constructed home located in Louisiana shall be subject to the
15 following provisions:
16 * * *
17 (c) Beginning in Fiscal Year 2015-2016, the maximum amount of tax credits
18 for purchased systems which may be granted by the department on any return,
19 regardless of tax year, shall be as follows:
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 162ES-82 ORIGINAL
HB NO. 54
1 (i) For tax credits claimed on returns filed on or after July 1, 2015, and
2 before July 1, 2016, no more than ten thirty million dollars of tax credits shall be
3 granted.
4 * * *
5 (2) Leased systems. Tax credits authorized under this Section for the
6 purchase and installation of a system at a Louisiana residence by a third party
7 through a lease with the owner of the residence shall be subject to the following
8 provisions.
9 * * *
10 (b)
11 * * *
12 (ii) Beginning in Fiscal Year 2015-2016 the maximum amount of tax credits
13 for leased systems which may be granted by the department on any return, regardless
14 of tax year, shall be as follows:
15 (aa) For for tax credits claimed on returns filed on or after July 1, 2015, and
16 before July 1, 2016, shall be no more than ten five million dollars of tax credits shall
17 be granted.
18 * * *
19 Section 2. R.S. 47:6030(B)(2)(b)(ii)(bb) and (cc) are hereby repealed in their
20entirety.
21 Section 3. This Act shall become effective on July 1, 2016; if vetoed by the governor
22and subsequently approved by the legislature, this Act shall become effective on July 1,
232016, or on the day following such approval by the legislature, whichever is later.
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 54 Original 2016 Second Extraordinary Session Thibaut
Abstract: Regarding the solar energy system tax credit, transfers future credit cap
allowances from the leased system program to the purchased system program.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 162ES-82 ORIGINAL
HB NO. 54
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 their residence, or if
it is purchased by a third party for installation at another person's residence, typically
through a lease agreement. The tax credit program sunsets Jan. 1, 2018.
Purchased system
Present law prohibits tax credits for any system installed after Dec. 31, 2017.
Present law allows a credit for a system purchased and installed on or after July 1, 2015, and
before Jan. 1, 2018, equal to the lesser of any of the following: 50% of the cost of purchase
and installation, $2.00 multiplied by the size of the system measured in DC watts, or
$10,000.
Present law beginning with Fiscal Year 2015-2016, establishes annual caps on the total
amount of tax credits allowed on any tax return, regardless of tax year, as follows:
1. For tax credits claimed on returns filed on or after July 1, 2015, and before July 1,
2016, no more than $10 million.
2. For tax credits claimed on returns filed on or after July 1, 2016, and before July 1,
2017, no more than $10 million.
3. For tax credits claimed on a return filed on or after July 1, 2017, no more than $5
million.
Proposed law increases the annual cap for returns filed on or after July 1, 2015, and before
July 1, 2016, from $10 to $30 million, thus increasing the total allowable credits for
purchased systems through the end of the program (Dec. 31, 2018) from $25 million to $45
million.
Leased system
Present law prohibits tax credits for any system installed after Dec. 31, 2017.
Present law allows a credit for a system purchased and installed by a third party through a
lease with the owner of the residence if the system was purchased and installed on or after
July 1, 2015, and before Jan. 1, 2018, equal to 38% of the first $20,000 of the cost of
purchase and installation.
Present law beginning with Fiscal Year 2015-2016, establishes annual caps on the total
amount of tax credits allowed on any return, regardless of tax year, as follows:
1. For tax credits claimed on returns filed on or after July 1, 2015, and before July 1,
2016, no more than $10 million.
2. For tax credits claimed on returns filed on or after July 1, 2016, and before July 1,
2017, no more than $10 million.
3. For tax credits claimed on returns filed on or after July 1, 2017, no more than $5
million.
Proposed law changes present law by providing that the total of all tax credit claims for
leased systems on returns filed on or after July 1, 2015 shall be limited to $5 million, thus
reducing the total allowable credits for leased systems through the end of the program (Dec.
31, 2018) from $25 million to $5 million.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 162ES-82 ORIGINAL
HB NO. 54
(Amends R.S. 47:6030(B)(1)(c)(i) and (2)(b)(ii)(intro. para.) and (aa): Repeals R.S.
47:6030(B)(2)(b)(ii)(bb) and (cc))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.