Louisiana House Bill HB633

Louisiana 2017 Regular Session

• Introduced: 4/18/17
• Refer: 4/19/17

Caption

Provides for the carry forward rather than the refund of excess amounts of the solar energy systems tax credit under certain circumstances (OR -$1,700,000 GF RV See Note)

Impact

The bill specifically permits taxpayers to apply any excess credit towards future tax liabilities for up to five years, providing a measure of relief for those who may have experienced denials based on the tax credit cap for the fiscal years 2015-2016, 2016-2017, and 2017-2018. This extension is expected to incentivize individuals and businesses in Louisiana to invest in solar energy systems, contributing to the state's goals for renewable energy adoption and environmental sustainability. It also retains the existing laws that cap the total amount of credits allowed, which reflects the ongoing fiscal considerations of the state government.

Summary

House Bill 633 aims to amend the existing solar energy systems tax credit laws in Louisiana by allowing taxpayers to carry forward excess tax credits that cannot be utilized due to annual caps. This change is significant as it addresses limitations that previously prevented taxpayers from fully benefiting from the solar energy tax credits during specific fiscal years. The inclusion of provisions for both purchased and leased solar systems provides clarity and encourages the adoption of renewable energy solutions in the state.

Sentiment

The sentiment surrounding HB 633 appears to be positive among advocates for renewable energy, as it provides a pathway for individuals and businesses to benefit from tax incentives that may otherwise go unutilized. Proponents argue that by facilitating the carry forward of credits, the bill supports the expansion of solar energy, ultimately aligning with broader environmental goals. However, there may be concerns regarding the state’s budgetary impact, especially given the established caps, which might create a tension between encouraging green technology and managing fiscal responsibility.

Contention

Notably, there are concerns regarding the fiscal implications of extending the carry forward provisions. The economic analysis associated with the bill estimates a potential impact of approximately $1.7 million on general fund revenues, which raises questions about the sustainability of such tax incentives in the long term. Moreover, there may be discussions around the fairness and equity of providing significant tax benefits to solar adopters when compared to other energy sectors, as well as the potential administrative burden placed on the state in processing these credits.