Amidst the swarm of 2015 bills addressing Louisiana’s generous solar tax credit, one bill has succeeded in climbing the governor’s desk. With respect to solar PV systems, HB 779, as passed by both chambers of the legislature, would:
- Establish an annual aggregate tax credit cap of $10 million for purchased systems for FY2016 and FY2017, and $5 million for FY2018;
- Revise the annual aggregate tax credit cap for leased PV systems to generally correspond with the same terms as those for purchased systems — except that for credits granted for leased systems in FY2015 after June 1, 2015, there is a cap of $19 million;
- Allow excess credit refunds to be withheld under certain circumstances, including if existing tax disputes or investigations exist at the state or federal level, as may be the case for some 3rd-party system owners;
- Limit the credit to systems installed at a taxpayer’s primary residence; and
- For purchased systems installed between July 1, 2015, and January 1, 2018, sets the tax credit at the lesser of: $2/W, 50% of the purchase and installation cost, or $10,000.
- For leased systems installed between July 1, 2014 and January 1, 2018, sets the tax credit at 38% of the first $20,000 of the cost of the “purchase,” but retains existing size limitation (6 kW) and a cost cap of $2/W, effectively limiting the cost basis for the credit to $12,000 anyway.