HB 705 Solar Tax Credit Bill Goes to the Governor

State Capital w tree

The Louisiana House of Representatives voted today to concur on Senate amendments to HB 705. That means the bill now goes to the governor. In essence the very much discussed and amended bill leaves tax rebates for purchases of solar systems on single family residences in place until Dec 31, 2017. The tax rebate sunsets as of that date. As of July 1, 2013 (effective date of legislation if signed by gov.) the tax credit is limited to one system on a single family residence and the tax rebate is removed for wind systems and for solar systems on apartments.

Rebates for leased systems stay as they are until Jan 1, 2014. After that date they are capped at 38% of a maximum leased system cost of $25,000. After July 1, 2014 the share of leased system cost that is eligible for rebate is phased down to 38% of $21,000. After July 1, 2015 leased system eligible cost is reduced to 38% of $16,000. Tax rebates for leased systems sunset completely on Dec 31, 2017.

You can see the complete House summary of Senate amendments which they voted on today at http://www.legis.la.gov/legis/ViewDocument.aspx?d=855187&n=Summary%20of%...

We think the governor will want to sign this bill because it makes the state tax credits for solar go away after the end of 2017. The conclusion to draw from this is that if you want a solar system on your home in Louisiana you had better get it done before end of 2017. If you want to install a system from a leasing company you best do it before Jan 1, 2014. Keep in mind that the 30% federal tax credit is still in place. We will be very interested to hear what the solar installers and leasing companies have to say about how this state legislation will affect their business.

Update: The Governor did sign HB 705 into law on June 21.

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