Louisiana has heavily revised its generous solar tax credit. The new law (HB 779) amends the credit by:
- Adding an annual aggregate tax credit cap of $10 million for purchased systems for FY2016 and FY2017, and of $5 million for FY2018.
- Revising the annual aggregate tax credit cap for leased systems to generally correspond with the same terms as those for purchased systems, except that an additional FY2015 cap of $19 million applies for credits granted after June 1, 2015.
- Adding language allowing excess credit refunds to be withheld under certain circumstances, including if existing tax disputes or investigations exist at the state or federal level.
- Prohibiting systems from being financed by installers or installer affiliates.
- Limiting the credit to installations located at a taxpayer’s primary residence.
- For purchased systems installed through the end of 2017, setting the credit at the lesser of: $2/W, 50% of the purchase and installation cost, or $10,000 (compared to the current credit of 50% of costs up to $12,500 without a cost cap).
- For leased systems installed through the end of 2017, setting the credit at 38% of the first $20,000 of the cost of the “purchase” (instead of the first $25,000).