- Who is eligible to earn the credit?
The credit is available to individuals who install a wind or solar energy system their residence located in this state as well as to owners of residential rental apartment projects located in the Louisiana. The credit is also available to Louisiana taxpayers who purchase and install a system in a Louisiana residence or residential rental apartment project who do not own the structure on which the system is installed.
- Does the taxpayer have to own the structure on which the system is installed?
For systems placed in service before January 1, 2009 the taxpayer must own the structure on which the system in installed. Beginning January1, 2009 a taxpayer does not have to own the structure on which the system is installed in order to be eligible to receive the credit.
- Where can a system be installed to be eligible for the credit?
All wind or solar energy systems must be installed in the immediate vicinity of the residence or apartment project claiming the credit so that the electrical, mechanical or thermal energy is delivered directly to the residence or apartment project.
- What is the amount of the credit?
The credit is fifty percent of the cost of each wind energy system or solar energy system, including installation costs. The maximum amount of the credit per system is $12,500.
- What costs are eligible to be included under the tax credit?
Eligible costs include reasonable and prudent costs for equipment and installation of the wind and solar energy systems. Financing costs are not eligible costs.
- Will the receipt of a federal credit for the purchase and installation of a system preclude a taxpayer from receiving the state credit?
No. The credit may be used in addition to any federal tax credits earned for the same system.
- Can the credit be combined with other state tax incentives?
No. Taxpayers shall not receive any other state tax credit, exemption, exclusion, deduction, or any other tax benefit for property for which the taxpayer has received the tax credit.
- When can the tax credit be claimed?
The tax credit can only be claimed for the year in which the system is placed in service.
- Is the credit refundable or non-refundable?
The Wind and Solar credit is a refundable tax credit.
- What documentation must be retained in order to provide proof of purchase?
Applicants applying for the tax credit on any system must provide proof of purchase to the Louisiana Department of Revenue detailing the following as applicable to the particular solar or wind energy system installation: a) type of system applying for the tax credit; b) output capacity of the system; c) physical address where the system is installed in the state; d) total cost of the system as applied towards the tax credit; e) make, model, and serial number of generators, alternators, turbines, photovoltaic panels, inverters, and solar thermal collectors applied for in the tax credit; f) name and Louisiana contractor’s license number of installer; g) copy of the modeled array output report using the PV Watts Solar System Performance Calculator developed by the National Renewable Energy Laboratory; and h) copy of a solar site shading analysis conducted on the installation site using a recognized industry site assessment tool such as a Solar Pathfinder or Solmetric demonstrating the suitability of the site for installation of a solar energy system.”
For tax years before 2010, form R-1081 is required for each system for which a business taxpayer is claiming the credit and form R-1082 is required for each system for which an individual taxpayer is claiming the credit. Beginning with tax year 2010, a completed R-1086 is required for each system for which either a business or individual taxpayer is claiming the credit.
- What is a “separate system”?
A solar electric system is defined as “a system consisting of photovoltaic panels with the primary purpose of converting sunlight to electrical energy and all equipment and apparatus necessary to connect, store and process the electrical energy for connection to and use by an electrical load.”
A solar thermal system is defined as “a system consisting of a solar energy collector with the primary purpose of converting sunlight to thermal energy and all devices and apparatus necessary to transfer and store the collected thermal energy for the purpose of heating water, space heating, or space cooling.”
A wind energy system is defined as “a system of apparatus and equipment with the primary purpose of intercepting and converting wind energy into mechanical or electrical energy and transferring this form of energy by a separate apparatus to the point of use or storage.”
- Does the installation of a ground source heat pump qualify for the tax credit?
No. A ground source heat pump should not be considered a wind or solar energy system. Wind and solar energy systems generate electricity that can be used in the home. A ground source heat pump circulates heat that is stored in the earth in order to heat or cool a building. Even though a ground source heat pump uses much less electricity than a conventional cooling system, it still uses electricity rather than producing electricity. The wind or solar energy systems tax credit is an incentive for systems that produce energy, not for systems that use energy more efficiently.