revision authority of the Louisiana State Law Institute. This Rule clarifies the application of the credits for those taxpayers who purchase and install wind or solar energy systems.
REVENUE AND TAXATION
Part I. Taxes Collected and Administered by the Secretary of Revenue
Chapter 19.Miscellaneous Tax Exemptions
§1907.Income Tax Credits for Wind or Solar Energy Systems
A.Revised Statute 47:6030 provides an income tax credit for the purchase and installation of a wind or solar energy system by a resident individual at his residence located in Louisiana or by the owner of a residential rental apartment project located in Louisiana. In order for costs associated with the purchase and installation of a wind or solar energy system to qualify for this credit, the expenditure must be made on or after January 1, 2008. The amount of the credit is equal to 50 percent of the first $25,000 of the cost of each wind or solar energy system.
Charge Controller―an apparatus designed to control the state of charge of a bank of batteries.
Grid-Connected, Net Metering System―a wind or solar electric system interconnected with the utility grid in which the customer only pays the utility for the net energy used from the utility minus the energy fed into the grid by the customer. All interconnections must be in accordance with the capacity, safety and performance interconnection standards adopted as part of the Louisiana Public Service Commission's, the New Orleans City Council's, or other Louisiana utility regulatory entities, as appropriate, established Net Metering rules and procedures.
Inverter―an apparatus designed to convert direct current (DC) electrical current to alternating current (AC) electrical energy. Modern inverters also perform a variety of safety and power conditioning functions that allow them to safely interconnect with the electrical grid.
Photovoltaic Panel―a panel consisting of a collection of solar cells capable of producing direct current (DC) electrical energy when exposed to sunlight.
Residence―a single family dwelling, one dwelling unit of a multi-family owner occupied comple (such as a condominium) or one residential dwelling unit of a rental apartment complex. All eligible residences must be located in Louisiana.
Solar Electric System―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.
Solar Thermal System―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 purposes of heating water, space heating, or space cooling.
Supplemental Heating Equipment―a device or apparatus installed in a solar thermal system that utilizes energy sources other than wind or sunlight to add heat to the system, with the exception of factory installed auxiliary heat
strips that are an integral component of a specifically engineered solar hot water storage tank.
Wind Energy System―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.
C.Household Eligibility for Wind and/or Solar Energy Systems Tax Credits
1.Each residence or apartment project in the state is eligible for tax credits for the number of separate complete wind, solar electric, and solar thermal energy systems necessary to ensure that the residence or apartment project is supplied with all of its energy needs.
2.The credit for the purchase and installation of a wind energy system or solar energy system by a resident individual at his residence shall be claimed by the resident individual on his Louisiana individual income tax return.
3.The credit for the purchase and installation of a wind energy system or solar energy system by the owner of a residential rental apartment project shall be claimed by the owner on his Louisiana individual, corporate or fiduciary income tax return.
4.All wind or solar energy systems must be installed in the immediate vicinity of the residence or apartment project claiming the credit such that the electrical, mechanical or thermal energy is delivered directly to the residence or apartment project.
5.In order to claim a tax credit(s) for a wind energy system, solar electric energy system, or solar thermal energy system the components for each system must be purchased and installed at the same time as a system. Eligible components of systems are defined in Paragraphs D.2 through D.4 below.
D.Wind and Solar Energy Systems Eligible for the Tax Credit
1.The credit provided by R.S. 47:6030 is only allowed for complete and functioning wind energy systems or solar energy systems. Local and state taxes are an eligible system cost.
a.Exception to General Rule Allowing Credit Only for Complete Systems
i.In order to be eligible to receive the credit, the owner of a single unit in a multi-family residence project (such as a condominium)must have an undivided interest in the wind or solar energy system that is being installed.
ii.If a component of a wind or solar energy system is shared, documentation must be supplied dividing up the costs of the component between all those eligible for the credit.
iii.Subsequent purchasers of units in the multi-family residence not in possession of an undivided interest at the time of installation, will not be eligible for the credit.
2.Wind Energy Systems. Eligible wind energy systems under the tax credit include systems designed to produce electrical energy and systems designed to produce mechanical energy through blades, sails, or turbines and may include the following.
Eligible System Components
Louisiana Register Vol. 34, No. 10 October 20, 2008