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Details of state and federal tax credits and net metering rules can be found at the Database of State Incentives for Renewables & Efficiency website. Some of the information is listed below for Louisiana state tax credits, Federal credits, Louisiana Property Tax Exemption, Home Energy Loan programs, and Louisiana Net Metering guidelines. Please refer to the DSIRE data base for even more information. Some utility companies in Louisiana offer rebates. Louisiana State Tax Credit (Residential and Corporate)- updated 6/11/2008Louisiana provides a tax credit for the purchase and installation of solar and wind energy systems purchased and installed on or after January 1, 2008. In September 2007 the Louisiana Department of Revenue issued an Emergency Rule provide clarification until final rules can be issued. The credit may be applied to personal, corporate or franchise taxes, depending on the entity which owns the property, but the system must be installed at either a residence or a residential rental apartment complex to be eligible. The tax credit may be applied both to solar-electric systems (PV systems) and solar-thermal systems, when the energy is used for space heating, space cooling or water heating. The amount of the credit is equal to 50% of the first $25,000 of the cost of the system, including installation costs (unless the taxpayer is installing the system). The credit must be fully claimed in the taxable year in which the system is installed and placed in service. Any excess credit which exceeds the taxpayer's liabilities for that year shall be treated as an overpayment, and the Louisiana Department of Revenue will issue a refund for the remaining amount within one year of receiving the claim. For PV, the tax credit applies to AC or DC generation systems which are grid-connected net metered systems (with or without battery backup) or stand alone systems. Eligible wind energy systems include AC or DC electric generation and mechanical wind systems. Solar thermal systems include those used for solar hot water, heating and cooling thermal energy and pool heating. Electrical equipment must be UL certified and installed in compliance with all applicable building and electrical codes. Solar thermal equipment must be SRCC certified and installed in compliance with all applicable building and plumbing codes. Installations must be performed by a licensed contractor, the owner of the residence, or by a person who has received certification by a technical college in the installation of such systems. In order to claim a tax credit for a wind or solar energy system all components must be installed at the same time as the system. This tax credit may be combined with any federal tax incentive, but it may not be combined with any other state tax incentive. Whenever additional incentives such as cash rebates, prizes or gift certificates are offered in addition to the tax credit, the eligible cost must be reduced by the value of the incentive received. Louisiana Tax Credit Final Rules download here
Contact: Federal Tax Credit (Residential)- updated 10/7/2008Established by the Energy Policy Act of 2005, the federal tax credit for residential energy property initially applied to solar-electric systems, solar water heating systems and fuel cells. The Energy Improvement and Extension Act of 2008 (H.R. 1424, Division B) extended the tax credit to small wind energy systems and geothermal heat pumps, effective January 1, 2008. Other key revisions included an eight-year extension of the credit to December 31, 2016, and the ability to take the credit against the alternative minimum tax. A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the U.S. used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is on a new home, the "placed in service" date is the date of occupancy by the homeowner. Expenditures include labor costs for onsite preparation, assembly, or original system installation and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The credit is calculated based on the individual's expenditures excluding subsidized energy financing, which is defined as "financing provided under a Federal, State, or local program a principal purpose of which is to provide subsidized financing for projects designed to conserve or produce energy." Consumers who receive other incentives are advised to consult with a tax professional regarding how to calculate this federal tax credit. For the maximum allowable credit, equipment requirements, and other details vary by technology see DSIRE website. Maximum Incentive: Solar electric: $2,000 for systems placed in service on or before 12/31/08; no maximum limit beginning in 2009. Solar water heating: $2,000. Fuel cells: $500 per 0.5 kW. Small wind: $500 per 0.5 kW, up to $4,000. Geothermal heat pumps: $2,000. Federal Tax Credit (Corporate)- updated 10/7/2008For eligible equipment installed from January 1, 2006, through December 31, 2008, the credit is set at 30% of expenditures for solar technologies, fuel cells and solar hybrid lighting; microturbines are eligible for a 10% credit during this two-year period. For equipment installed on or after January 1, 2009, the tax credit for solar energy property and solar hybrid lighting reverts to 10% and expires for fuel cells and microturbines. The geothermal credit remains unchanged at 10%. The credit for fuel cells is capped at $500 per 0.5 kilowatt (kW) of capacity. The maximum microturbine credit is $200 per kW of capacity. No maximum is specified for the other technologies. Solar energy property includes equipment that uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat. Hybrid solar lighting systems are those that use solar energy to illuminate the inside of a structure using fiber-optic distributed sunlight. Geothermal energy property includes equipment used to produce, distribute, or use energy derived from a geothermal deposit. It does not include geothermal heat pumps. For electricity produced by geothermal power, equipment qualifies only up to, but not including, the electrical transmission stage. Energy property does not include public utility property, passive solar systems, or pool heating equipment. To qualify, the original use of the equipment must begin with the taxpayer or it must be constructed by the taxpayer. The equipment must also meet any performance and quality standards in effect at the time the equipment is acquired. The energy property must be operational in the year in which the credit is first taken. If the project is financed in whole or in part by subsidized energy financing or by tax-exempt private activity bonds, the basis on which the credit is calculated must be reduced. (The formula is described in the tax credit instructions.) Subsidized energy financing means "financing provided under a federal, state, or local program, a principal purpose of which is to provide subsidized financing for projects designed to conserve or produce energy." Therefore, a business must reduce the basis for calculating the credit by the amount of any such incentives received. Louisiana Property Tax ExemptionIn Louisiana, any equipment attached to an owner-occupied residential building or swimming pool as part of a solar energy system is considered personal property that is exempt from ad valorem taxation. The value of a solar energy system will not be included in the assessment of such buildings or swimming pools. A solar energy system is defined as "any device that uses the heat of the sun as its primary energy source and is used to heat or cool the interior of a structure or swimming pool, or to heat water for use within a structure or swimming pool." Solar energy systems include but are not limited to systems utilizing solar collectors, solar cells and passive roof ponds. Federal Home Energy Efficiency MortgageEnergy efficient mortgages (EEMs) can be used by homeowners to finance a variety of energy efficiency measures, including renewable energy technologies, in a new or existing home. The federal government supports these loans by insuring them through FHA or VA programs. This allows borrowers who might otherwise be denied loans to pursue energy efficient improvements, and it secures lenders against loan default and provides them with confidence in lending to customers whom they would usually deny. The federal government also certifies private lenders to provide EEMs through the ENERGY STAR program, which does not provide the same security as the FHA or VA programs but offers ENERGY STAR certification. Other private lenders, like Fannie Mae and Freddie Mac, offer "conventional energy efficient mortgages" that may or may not require homes to meet Energy Star standards. Refer to the DSIRE website for greater details. Louisiana Home Energy Loan ProgramThe Louisiana Department of Natural Resources offers a low-interest loan program, the Home Energy Loan Program (HELP), to help residential users make energy efficient improvements to their existing homes. A homeowner may qualify for an energy improvement loan in two ways - either through an energy audit in which an Energy Home Rater makes recommendations, or by choosing pre-approved home improvements as designated by the program. In order to participate, a homeowner must contact one of the two participating lenders directly to complete a credit application. The HELP home improvement loans may be consumer loans or second mortgages at the discretion of the participating lender. The list of participating lenders and pre-approved improvements is listed at the program website.
Contact: Louisiana Home Energy Rebate OptionThe Home Energy Rebate Option (HERO) Program is offered by the Louisiana Department of Natural Resources (DNR) for residents to receive cash rebates for energy efficient improvements to existing homes. The actual amount of the incentives depends on the resulting energy savings, or Energy Efficiency Premium. Any homeowner of an existing home is eligible to apply under this program. All applications must be submitted prior to the start of any renovation. The homeowner contacts a qualified home energy rater, listed on the Louisiana DNR site, and pending funding, submits a rating containing proposed improvements. After the home has been rated, the homeowner must complete construction in the time allowed by the DNR. Following a verification rating by the home rater, the HERO Program will issue a rebate to the homeowner, determined by the calculated energy savings.
Contact: Louisiana Net Metering- updated 6/30/2008The Louisiana Public Service Commission (PSC) issued rules for net metering and interconnection in November 2005, pursuant to legislation enacted in 2003. Net metering for nonresidential systems was expanded by SB 359, enacted in June 2008. Louisiana's rules, based largely on those in place in Arkansas, require investor-owned utilities, municipal utilities and electric cooperatives to offer net metering to customers that generate electricity using solar, wind, hydropower, geothermal or biomass resources. (Fuel cells and microturbines that generate electricity entirely derived from renewable resources are eligible.) Residential systems up to 25 kilowatts (kW) in capacity, and commercial and agricultural systems up to 300 kW in capacity are eligible for net metering. Utilities must provide customer-generators with a meter capable of measuring the flow of electricity in both directions. Utilities must pay for the cost of the meter itself, but customer-generators must pay a one-time charge to cover the installation cost of the meter. Net excess generation (NEG) is credited to the customer's next bill indefinitely. For the final month in which the customer takes service from the utility, the utility will pay the customer for the balance of any credit at the utility's avoided-cost rate. Customer-generators seeking to net meter must notify the utility at least 90 days prior to the date of interconnection. Utilities must use a PSC-approved standard interconnection agreement for net-metered facilities. Customers must pay for "interconnection costs," which are defined in the PSC's rules. (See the DSIRE record for Louisiana's interconnection standards for details.) By the end of each calendar year, utilities must file with the PSC a report listing all existing net-metered systems and their capacities, and, where applicable, the inverter rating for each facility. Regarding renewable-energy credits (RECs), the PSC will review the feasibility of a REC-trading program as part of the commission's ongoing renewable portfolio standard (RPS) rulemaking process.
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