The good news is that it appears homeowners in Louisiana are embracing residential solar; the bad news is that the state has already reached a tax credit limit for purchased systems.
As the Louisiana Department of Revenue explains in a press release, the 2015 legislature placed caps on the amount of money available to pay claims under the state’s solar tax credit program, which ends Dec. 31, 2017. The caps for fiscal years 2015-2016 and 2016-2017 were set at $10 million each, with the fiscal-year 2017-2018 limit set at $5 million.
However, the department says claims approved or under review for the tax credit have already exceeded available funds through the scheduled end of the program. Due to high demand, the claims total $39 million, or $14 million over the allotted funds.
As required by state law, the department approves these tax credit claims on a first-come, first-served basis, based on the date the tax return is filed. According to the release, consumers purchasing residential solar energy systems from this point forward should not expect to receive tax credits from the state.
The department adds that taxpayers who do not receive refunds under the 2016 fiscal-year cap will be notified in writing if they are eligible for deferred claims under the other two caps. Any taxpayer who is denied a tax credit due to lack of funds will receive a certified letter of denial.