Louisiana Finalizes New Tax Credit Regulations for Wind and Solar Energy Systems
The Louisiana Secretary of Revenue issued new updated guidelines for obtaining income tax exemptions for wind and solar energy systems. Codified at Title 61, Section 1907, the Secretary of Revenue modified the regulations to conform with the new Revised Statute 47:6030. The statute calls for an income tax credit in the amount equal to 50% of the first $25,000 of the cost of a wind or solar energy system. The credit is available to resident individuals with a system installed at a residence located within Louisiana or the owner of a residential apartment project located in Louisiana.
The regulation explains that the credit will be allowed for each separate system (an owner of multiple apartment complexes can claim more than one credit for each complex). The system must directly deliver energy to the residence or apartment complex.
Further, the regulation codifies how the credits may be shared among multiple beneficiaries of a system that have ownership in the system (such as a condominium complex). In such an instance, the costs must be divided and sufficiently documented among the various owners.
The eligible costs that can be included in the tax credit are the reasonable and prudent costs for equipment and installation of the systems. Individual labor costs for self-installations are not eligible.
